Full text of Commercial and Financial Chronicle : March 19, 1959, Vol. 189, No. 5830

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MAR 20 1959
WSINISS ADMINISIBATI
LIBRARY,

Reg, U. s. Pat. Office

Volume 189

Number

5830

New York 7, N. Y.,

EDITORIAL

V—
:

M. J
f'* We

As
hearing

are

."'istered

prices." A few

See It ||
We
•

and

are now

to the formulation of

could be

•

true

were

Such, however, is not the
decades

some

.first formulated,

confined

rather than in

they

case.

when these ideas

ago

now

prospects for

was

were

current economic conditions which reflect under**

the realism to

ointment

now

prices and most
.

the

Spring

ties

markets.

was

"This is

was

His

fail to

;

cover

expenditures which current
and

that the unions

revenues

an effort to
parry charges ;
in very substantial part, if not

same

time lays

breath

grams

which

condemn
can

inflation

be counted

upon

urge

very

Anthony

DEALERS

different

in stock

prices,

comparable
market

as was

with

averages

efforts to prevent

that

page

SECURITIES
tial

edge,

NOW

afforded

are

address

Merchants

undertakings

capabilities, comfort and
Its only limits are im¬

mate
William

lack of imagination; in
no perimeter of ulti¬

H. CooUy

accomplishment,

to its

potential to

the

difference

between

Obviously, the job

good

not

bad
because
sound analysis

Continued

and investors in corporate
complete picture of issues now registered with the SEC and poten¬
our
"Securities in Registration" Section, starting on page 38.

STATE

and c.

AND

MUNICIPAL

Lester, Ryons
€'J3

BONDS

INVESTME NT

Offices in

THE FIRST NATIONAL CITY BANK
*

Burnham
MCM3ERS NEW YORK

30 BROAD ST.,

and

Company

15 BROAD STREET, NEW

YORK 5, N.Y.

•

01 4-1400

TELETYPE NY 1-2292

Bond Dept.

ESTABLISHED

1832

Markets

Active

Banks

New York Stock

American

DALLAS

.BOND

Brokers

Bell Tel. of Canada

Stock

Exchange

BROAD

Bonds due February 1, 1981

•

PERTH AMBOY

for California's

Non-Callable

and

interest

payable
Canadian Dollars only.
Price 89.50 (U. S.)

DEPARTMENT

DIRECT WIRES TO MONTREAL AND

Expanding

Economy
,

TORONTO

BoNmoN Securities

115

8R0ADWAY

NEW YORK

NORTH LA SALLE ST
CHICAGO

MUNICIPAL BOND

DEPARTMENT

Grporatioti

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

Municipal Bonds

Company

STREET

NEW YORK 4, N. Y.

BANK

(Guaranteed by the Government of Canada)

Inquiries Invited

CANADIAN

Chase Manhattan

Southern

$500,000

Principal
Block

the

Securities

Canadian National Railway

Rights

Exchange

DEPARTMENT

Correspondent—Pershing & Co.

Maintained

and

Teletype NY 1-2270

£}0Uthii}€4t COMPANY

New York

x SSI

Diego, Santa Ana, Santa Monica

Inquiries Invited

Teletype: NY 1-708

Dealers,

Members

■ ■■■/ ?■ '

San

OF NEW YORK

Net

Distributor

t. L. Watson &Co.

FIRST

Exchange

Claremont, Corona del Mar,

California

Dealer

Bonds and Notes

Pasadena, Pomona, Redlands, Riverside,

AND AMERICAN STOCK CXCHANGC3

CABLE: CO BURNHAM

Housing Agency

Encino, Glendale, Hollywood, Long Beach,

BANK

Public

IT,

Members New York Stock Exchange

CORN EXCHANGE

Co.

Associate Member American Stock Exchange
Members Pacific Coast

SECURITIES

CHEMICAL

-v' -,

California' '"V

of-".

;>;v

page

State, Municipal

So. Hope Street, Los Angeles

DISTRIBUTORS

IlAnover 2-3700

•

REGISTRATION—Underwriters, dealers

Municipal

vO,...-Securities

Underwriter

the

UNDERWRITERS

NT
BOND DEPARTMENT

elements for a
are
elusive,
requiring no small amounts of imagination, faith and
necessary

Bank

TKI.KPHOVE;

investment?
some

and

Housing.

State and

science? How

and

easy

mankind.

do you translate what it may do, what it could do in
terms of dollars and cents, or in terms which may spell

U. S. Government.
Putilie

boundaries

serve

How do you measure

by Mr. Gaubis before the 12th Annual Farmers
Forum, Long Beach, Calif., March 12, 1959.

which, of itself and allied

itself there is

by 25% before government
downward spiral could take effect.
page

limited

the

amusement.

witnessed in 1937; or at least one
experienced in 1946, when the

science

posed by

mean that we
decline

Continued

Electronics must first be taken
a

declined
a

with other sciences, has already con¬
tributed a great deal to man's knowl¬

were

Electronics

a single industry is to ignore
only the vast scope of its appli¬
cations to date, but also to unneces¬
sarily circumscribe its known po¬
tentials.
1 \

pro-

securities

they

cast

role of
not

could not have another 50%

*An

than

1929* but this does not

Gaubu

to stimulate it.

Continued

but; for reasons that I shall
summarize, I feel that Mr. Mellon's

basis for reck-

and

Of course, this
popular view at that

very

advice could well be repeated
today.
Of course, conditions are currently

J^less fiscal policies and unsound monetary and
£ credit practices. With the guilty label pinned on
; "administered prices." they can in one and the
{same

stocks

labor monopoly to demand higher and higher
and at the

Any discussion of the immediate or distant future of
must
begin with an examination of the
nature of this dynamic force which, in a comparatively
brief period of time, has wrought tremendous changes
in our physical and economic life.

excellent rate of expansion dur¬
ing the preceding eight years. It is
equally unpopular today to suggest
that investors might well be think¬
ing about buying bonds rather than

chiefly responsible, for the inflationary dangers.
This, so it is believed, leaves the way open to the
wages,

not

of invest¬

an area

Electronics

recall,

may

are

you

was generally ignored or
laughed at in Wall Street as reflect¬
ing a lack of imagination as to the
wonderful long-term prospects for
an economy which had
enjoyed such

not loathe

are

For the short

governments.

some

Inc.

Fund,

probable developments and ;
applications said to afford a tangible measure of growth.
Dividing the industry into four segments, the writer finds
each one shows improvement this year so that total vol¬
ume will reach a new
high of $8.6 billion in 1959 a$„
compared to $7.9 billion in 1958. Concludes that, as far
as the
progress of electronics is concerned "the sky most
>
assuredly is not the limit."

time, and

apply it to prices in support of their proposals

•for increased

but they

Television-Electronics

ment, Mr. Cooley analyzes

funds in either tax
or

President,

Well versed in electronics industry as

Secretary of* the Treasury
asked for his opinion on the securi¬

was

labor union sympathizers refuse to
wages,

Vice

good time to buy bonds."

thought of balancing the

prices."
Of course,

By WILLIAM H. COOLEY

President, Television Shares Management Corporation;

1929,

answer,

budget to be able to charge it all to "administered,

apply the term to

measures.

new

short-term corporates

Andrew Mellon

regardless of

broad economic conditions. And it is convenient
to those who dislike the

channeling

Copy

Sky Does Not Limit

selling

common

advises

exempts,

recognize. The fly in the

wage rates to rise

run,

persistent tendency for certain

now

and what should determine

area,

until the Fed takes drastic

lying factors which few have the hardihood to
face

buying

whole is

stock, and other factors support¬
ing the stock market. Aware of public's near liquidity,
the writer warns Wall Street
professionals not to fan
the speculative fever until the
public runs out of money

being applied to

are

Cents

The Future oi Electronics

the extent of equities in one's portfolio. Mr. Gaubis is
not unaware of the inflation
argument, and the long-run

fond of ab¬

are

The

•

directly to the point

comes

why the stock market

general theory, the matter

safely left to those who

stractions.

Investment counselor

also talking about

'""administered wages." If all this

By ANTHONY GAUBIS*

Anthony Gaubis & Company, New York City

about "admin-

Price

The Market Outlook

■

•vt
'

Thursday, March 19. 1959

Associate Member of American

Stock Exch.

Stattft of Atttmra
'

Exchange Place, New York 5. N. Y

Tel. WHitehall 4-8181

Tele. NY 1-702-3

NATIONAL

"VSinus ASSOCIATION *

300 Montgomery St., San Francisco,

CaliL

Financial Chronicle

The Commercial and

Thursday, March 19, 1959

(1294)

For Bunks.

The

Brokers, Dealers only

Try "HANSEATIC"

reaches

the ividest

^Thrirrarnines

Seligmann & Company
Milwaukee, Wis.

nation*

our

ing and $1,650,000 of 4%%

C. PETERSEN

GLENN

possible coverage,

follows'

—o.76

1953

0.85

1955

0.92

—

1957

highest in
the c company's history and new
plant facilities are being erected
Z

from

Teletype NY 1-40
•

CHICAGO

•

SAN FRANCISCO

many

come.

quarterly Which

and

creased with any

and

could

very amply
easily in¬

ucts

forti¬

Duffy-Mptt is selling at about
26 v2, or a little over 13 V2: times
earnings.
It would appear very
reasonably priced when compared
with Gerber's selling at 20 times
earnings. The stock is traded in

Glenn

Petersen

fied with vita¬

The

S. WEINBERG,

packed in glass and they are con¬
stantly working to maintain the
highest standards of purity and
quality.

GROSSMAN
& CO. INC.
Y. Security Dealers Ass'n

and

American Stock Exchange

Securities

greatly increased the sales of the
Clapp line since the acquisition.

Stuart Hall

are

products

Exchange Place, New York S
Phone: WHitehall 3-7830

Teletype No. NY 1-2762

Trading Interest In

American Furniture
Bassett Furniture Industries

Life Insurance Co. of Va.
Commonwealth Natural Gas

STRADER and COMPANY, Inc.
LYNCHBURG, VA.
LD 39
Private

TWX LY 77

-5-2527—

Wire

York

New

City

States Life Ins. Co.

West Coast Life Ins. Co.
(V.T.C.)

write

'/w

Yamaichi

Securities Company
York, Inc.

of New
■'

,Affiliate of

Yamaichi Securities Co.,

Ltd. *

Tokyo, Japan
Brokers

•

Investment Bankers

N.Y. 6 COrtlandf 7-5680

111 Broadway,

Opportunities Unlimited

(Associate)

Company, Inc.

by use of racks,

special counters,

IN JAPAN

Stuart Hall

tables and stands the

Company has increased the
cessibility of its products to

ac¬

the

potential buyer. Hundreds of new
A dynamic company in a growth i ideas are
presented daily through
Clapp's name was one of
industry selling at 8% and' pay¬ the art department to the group
the two original names in the
ing 440 in regular quarterly pay¬ management staff in order to keep
baby food field and although their
ments of 110 per share plus 3% <• the Stuart Hall line bright and
sales volume is still small com¬
per
y e a r in
- .
up to the minute.
pared to its nationwide competi¬
stock,
the
The
company
produces
and
tors, they have
regained their Stuart Hall
markets the
largest selling box
position as one of the leaders in
Company of
of stationery at $1.00 in the coun¬
its present distribution outlets.
Kansas City,
try today. It has had the largest
The Clapp line now accounts for
Missouri finds
percentage of growth in sales of
22% of Duffy-Mott's total gross itself in a
any company in its industry. Its
sales and with the start of active
rapidly
use
of group management tech¬
merchandising campaigns in other
expand ing
niques has tended to build a large
parts of the country, coupled with market for its
and aggressive team of officers,
constant birth increases, a much
products. The
giving, not only added stability to
greater portion of their business company
the company through group poli¬
in coming years will be derived
produces
a
cies, but also helping to build a
from baby food sales.
full line of
depth of management not usually
Duffy-Mott now furnishes its
boxed,
found in a company of this size.
growers
with specially selected packaged
The company has moved from
seeds for many of its vegetable
social statoward A. Wnue
its present four plants into one
baby products and inspects the
tionery, school
large structure consisting of over
progress and harvesting of these
supplies,
packaged
envelopes,« 200,000 square feet of manufac¬
crops.
The fruits for the fruit
writing tablets and commercial turing space where seven over
baby products are obtained from
stationery supplies which are dis¬ the road trailer trucks and four
established orchards and are proc¬
tributed nationally through major
freight cars may load and unload
essed locally to insure freshness
distributors and directly through
simultaneously. New warehouses
and high quality in the finished
the major chain drug stores, and in Los Angeles, and Jacksonville,
product,
chain grocery stores. In addition, Florida
have
been acquired to
At present the major portion of Stuart
Hall
products
are
sold speed deliveries of Stuart Hall
Duffy-Mott's
sales
come
from throughout
the
world
in
ship goods.
their apple and prune products stores on our
fighting vessels and
Capitalization consists of ap¬
which accounts for 76% of their
post exchanges maintained by our
proximately
163,000
shares
of
gross sales. They are the leading armed forces.
common stock of $1.00
par value
producers of these products sold
Let us take a close look at the held
by the public, in addition,
at retail, the more important of
tremendous
market
for
these
231,000 shares of Class B common
which is apple sauce and apple
products. Public school enroll¬ stock is owned by the family of
juice sold under the Mott's name,
ments which were 23,657,158 in the
founder, Charles G. Hanson.
and prune juice sold under the
1946 will by 1960 reach an esti¬
In
name of "Sunsweet."
addition,
$600,000
of 6%
mated
37,152,000. In each year
convertible debentures were sold
Most of Duffy-Mott's expansion
I,281,000 more students than ever
the company early in 1938
has taken place in recent years before will enroll in our schools/ by
which
are
convertible
into the
which enables them to have equip¬ If
you add private, parochial and
common
stock at $8.54 a share.
ment of advanced design for proc¬ other
specialized schools such as
The bonds have a sinking fund,
essing and preserving foods. All nursing, etc. present school en¬
are
callable at 105 and are due
products are processed in closed rollments would total 43,135,000
in 1977.
stainless steel systems sealed to for an annual
growth in student
It is anticipated that sharply in¬
insure the highest quality.
The population of 1,769,000.
The
creased earnings will come forth
methods of preserving foods are number of students is
tremendous,
instantaneous "flash" pasteuriza¬ the task to house them in schools in 1959 as a result of sharply in¬
•

California Western

Call

which

purchased because of their ac¬
cessibility and attractiveness and

The

;'W.

Stationery and

better.

lines

allied

Members Midwest Stock Exchange

they are engaged in an active
merchandising campaign and have

for Banks and Dealers

field, one of the first to wrap its
goods in Cellophane to allow the
dealer to bring them from under
the' counter
to the top of the
counter" so
that they might be

are

Vice-President and Treasurer

"White & Co., St. Louis, Mo.

;i"

in this

Over-the-Counter Market.

brokerage service

all Unlisted

Stuart

Hall has been an innovator,

displayed

where

supermarkets

pharmaceutical houses.

EDWARD A. WinTE

present the distribution is
concentrated
in Eastern chain
stores

the

Members

nutritional supple¬
Clapp line is

entire

For current information

but production

sales

equalled in its industry and un¬
equalled by many of the larger

in the earnings.

prod¬

ments.

In the drug and

further increase,

Many

mins and other

not

goods to serve this market.
chain store field
Stuart Hall commands a nation¬
wide
distributive
network
un-,

is 20c

cereals.

are

'■

problem

of these

to Principal Cities

officer

STOCKS

the < next decade the maj or
confronting Stuart Hall

oyer;

years

covered

branch

our

JAPANESE

underlined when you realize that

will

juices, fruits,
vegetables,
meats

for

wires to

Direct

supply
dimes

tablets, not millions for build¬
ings.
The
importance
of
this
market to the company is further

the

the earn¬
this trend

The current dividend rate

includes

now

York 5

and

items

continue

ex¬

NY 1-1557

HAnover 2-0700

NewOrleans, La.- Birmingham, Ala
Mobile, Ala.

for

since

that

seen

double and

ings

should

to 96

can

the spending of

market

acquisition of Clapp's Baby Foods

line

Clapp

Associate Member

Render

need

school

The

clusively.

it took only 4 years for

the

creased

American Stock Exchange

this

meet

in-order

1.93

1958

prior to
quisition.
They have in¬
a c

Iff Rector $b, New York I, N. Y,

school supplies are the

-1.65

Steiner, Rouse & Co!
Members New York Stock Exchange

1.40

1956

re¬

Bought—Sold—Quoted

;■,/

Members American Stock Exehangs

0.83

1954

years

Established 1920

Wires

White,; Vice-P resident and
Treasurer,
White &
Co., St.
Louis, Mo. (Page 2) <

$0.75

1952

build the sales

Corporation
120 Broadway, New

sinking
...

are

1951___

volume lost in

Private

(Page 2)

New York Hanseatic

PHILADELPHIA

Mil¬

Year

Duffy-Mott

paign

"Try HANSEATIC."

BOSTON

Louisiana Securities

C. Peter¬

Co.,

Co., Inc.—Edward A.

Stuart-Hall

Toeir eainm£s areErns. Per Sh,
as 10110ws.r.

Duffy-Mott purchased Clapp's
Baby Food in December, 1953 and
since its acquisition has engaged
in an active merchandising cam¬

you're getting

WOrth 4-2300

Seligmann

waukee'"Wis.

(The articles contained in this forum are not intended to be, nor
they to be regarded, as an offer to sell the securities discussed.)

wide wire system*
To make sure

Duffy-Mott Co.—Glenn

are

service and
broad range of

Contacts through

particular security.

sen,

department offers

Trigger-quick

for favoring

Alabama &

Their Selections

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

(■ the investment

Participants and

Forum

A continuous forum in which, each

participate and give their reasons

Our experienced trading

This Week's

Security I Like Best

for

Write

Monthly Stock

our

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

whole.

economy as a

Nomura Securities Co., Ltd.
York 6, N.

61 Broadway, New

if.

Telephone: BOwIing Green 9-0187
This

not

orders

for

offer or solicitation fO»

any

particular securities

L. A. DARLING"

COMPANY
BOUGHT

Vv.'v

SOLD

—

;

CO.

M0RELAND
v

Members

Stock

Midwest

Detroit

Stock

Exchange

1051 Penobscot Building
DETROIT

26, MICH.

WOodward 2-3855
Branch

Office

—

DE-78

Bay City, Mich.

"ah

»-

SAVING^

tion

Walter C. Gorey Co.
Rnss

Building, San Francisco 4

YUkon 6-2332

Wire

Tele. SF 1011 & 1012

System—-John

Legg

stainless

tubular heat
low

pressure

"flash"

method

Co., N.

used

for

The
fruit

juices and fruits, "while the retort
method is used for most

baby food products.

Y. C.

Duffy-Mott's
very

simple

shares of

capitalization
with

common

only

and to

educate them another tre¬

mendous
billion

600,000

stock outstand-

undertaking.

have

(Wer

$19

been

alone

schools

cookers.

Y. C.

of the
Troster, Singer &

and

plate

temperature cooking in large

retort

pressure

Company, Baltimore & N.

steel

exchanges, and gentle

spent on new
since World War

This

II.

phase accounts for 20%
public construction and the
proportion is rising steadily.

of all

The

total school supply market

creased volume without

surate
Here

increases
we

commen¬

selling

feel is the

crux

costs.
of the

books,

paper,

•

Quotation Services
for 46 Years

the reason
we are so pleased with the situa¬
tion. For the past 10 years this
Stuart

Hall

company

and

story and

has been building a sales
network.
This

distribution

job was necessarily a
gymnasium*
equipment, etc. is estimated at4 costly one. Even though yolume
over $509,800,000.
The Stuart Hall continued to increase
year
by
Company is gearing to meet this
Continued on page 37
ever increasing demand.
Sales-of

for

Over-the-Counter

National Quotation Bureaa
Incorporated

building

Established 1913

46 Front Street
CHICAGO

New York 4, HAL
SAN

FRANCISCO

189

ume

Number

5830

The Commercial and Financial Chronicle

(1295)

INDEX

Dramatic Electronics' Advance

B. So

Takes On Space Age
By JOHN

Articles and News

Challenge

L. BURNS

The

Dramatic advances in electron¬
ics

to meet the challenge in national
v*ctefense
and: space 7 exploration.
New

are

sions of

radars

strength¬
ening
our
warning sys-

electronic

quire a circuit arrangement of 80
separate components.
The recent Atlas "talking satel¬

lite," whose communications
developed

and

for missiles and

new uses

vehicles. RCA engineers

even

for space mail delivery,
nications

relays,

weather stations.
;

Increased

Defense

boards

Electronics'

14%

billion.

year's $3.6
anticipates an in¬

RCA

them

the

arsenal—that

tionary

circuits

progress

$400 million this

year.

It has long been my' conviction

that the strengthening of our de¬

fense
•]

posture

requires

action

both business and Government

partners

preparedness.

be¬

take the

lieve business must
tiative" in

that face
ment.

identifying,

defining,

ter

military

our

It must

establish¬

come

better

proce¬

military needs.

our

Miniaturization's Advance

advances

military

only

*"4-~
revolu¬

de-

systems*
fraction of

and

_t_

Insurance

Moore

Man's

Singer, Bean

Stocks__7_—

Bookshelf

Dealer-Broker

Investment

con¬

hour.

Direct Wires to

Bankers.

complex—utilizes

Our

Reporter's

button

Kingston, N. Y., to fire
from

end

Securities

missile

drone

target

is carried

out

'
.;

sea,

beginning to

Securities

and

Corner

State of Trade and Industry

Twice

FINANCIAL

Stock

Weekly

Reentered

CHRONICLE

Park

DANA

Nashville

Schenectady

WILLIAM

COMPANY.

Worcester

Basic Atomics

Febru

7, N.

MORRISSEY,

DANA

SEIBERT,

Thursday, March

19,

Subscription

Subscriptions

President

Union.

Dominion

Canada

Chicago

Offices.

HI.

135

South

(Telephone

Rates

United

Territories

Pan-American

Editor

States,

and

$65.00

$68.00

$72.00

Members
per

year,

per

8
Of

W» V. FMNKEL & CO.
INCORFOKA I EL

year

39 BROADWAY, NEW YORK 6

per year.

1959

Every Thursday i general news and ad*
vertlsing Issue) and every Monday (com¬
plete statistical Issue — market quotation
"records, corporation news, bank clearings
state
and
city
news. etc.»
,
■
,
Other

•

Publisher®

Other Countries,

Glens Falls
•

matter

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

Patent Office

Place, New York

GEORGE

TELETYPE NY 1-5
Chicago

William B. Dana

second-class

Possessions,

ST., NEW YORK 4, N. Y.

Boston

1959

Reeves Soundcraft

Company

Albany

.REctor 2-9570 to 9576

Exchange

TELEPHONE HAnover 2-4300

Permachem Corp.

ary

Reg

Spencer Trask & Co.
York

Yonkers Raceway

You—By Wallace Streete

Security I Like Best

The

Alaska Oil & Mineral

—-—

Security Offerings..

Uranium

Registration

Salesman's

The Market

BROAD

Western Gold &

The

through sealed

circuits.

Nov/

Prospective

Cape Canaveral, Fla., to in-'
a

Report

Securities

Railroad Securities

Chicago

presses

Los Angeles

Dallas

Cleveland

WILLIAM

Philadelphia

May

big and little hiissiles.

Teletype NY 1-1825 & 1-4844

Public Utility

INC.

40 Exchange Place, N. Y.

San Francisco

Governments

circuits.

mackie,

HA 2-9000

Wilfred

the,

—

PREFERRED STOCKS

New

Reporter

system

Published

Members

;

Funds '

About Banks and

News

Recommendations.

Indications of Current Business Activity.
Mutual

32
i

__r__i____

Our

man

Handley Hardware

Cover ;

The COMMERCIAL and

have specialized in

Pacific Uranium

Observations—A.

Springs

American Dryer

Washington and You__

For many years we

Air

Coming Events in the Investment Field:

missile

sealed

Pantasote

fundamentals

Seaway May Stimulate New Shipping Methods..

rence

Business

systems. .7 They

every function from

electronics

St. Lau

na¬

Bank

rugged than'the

The whole SAGE

are in

City

Program

Sinclair Armstrong, Former. SEC
Chairman, Holds
Commission's "No Sale" Rule Is Patently Invalid--.

;

nation's primary military warning

They

Denver

Report Voices Optimism

7 Investment Banking

many-

permit The

traveling 17,000 miles

tercept

One of the most dramatic recent

Market

About the Future._L

in micro-minia- 7.

wiring

Lake

$35: to

some

have to be to function in

When
up

Bond

IBA .to Hold Four-Week

electronic

ventional

with bet¬

equipment and

dures to meet

much

ini¬

studying and solving the problems

take

wires

Salt

Henry

Einzig: "Should British Government Purchase U. S.
Electronic Computers?"
the
space
required by ordinary - 7
wired
circuitry. 1 And " they, are 7 From Washington Ahead of the News—Carlisle Bargeron
that

4-4970

16 *'

Merrill Lynch's Annual

are

our

herald

They
of

DIgby

Teletype: JCY 1160

Philosophy

proven /

Sealed

velopment

defense

are

ago.

turization.

its

Department

City Stock Exch.

Exchange PL, Jersey City

Treasury and Reserve Board to Scrutinize Government

missiles

business

—(Letter to Editor)

products—not the least

from $300 million in 1958 to about

crease

Members Salt Lake

Silicon Transistors' Exports Under
Aegis of Commerce

expected to 7: 7
7
Regular Features
be produced this year. This is ah
As We See It (Editorial)_____..-_____
800%
increase
over* five
years
*

Defense sales

J.F.Reilly&Co.,Inc.

useful and essential in

tion's

last

over

Siragusa______7

In 1959 for the industry as a whole
can
be expected
to rise by at

Congress of World Business Leaders to Meet in
Washington.., 18

component connections

$40 million worth

least

the

which

electronic

Real Future: Dynamic Electronic
Walter Watts

MACHINES

___

Frank Cist Replies to Critics Regarding His
Critique of
Hazlitt's
Condemnation of Keynes' Economic

Toughness

printed circuits-

look

defense electronics.

Business With

—Ross

advances have also

expansion

MOHAWK BUSINESS

Direct

Circuit

sharply pointed
fact that the defense
business has increased
by almost 700% since 1950. We
continued

DIXON CHEMICAL

Bright Future Ahead for the Appliance Industry

Corps

Today these devices have

up by the
electronics

Electronics

in Defense

Components—W.

role ; in

national defense is

for

VERTOL AIRCRAFT

Electronics Are Even More
Challenging—F. C. Reith

actually sealed in a coating, of
moisture-impervious wax.

Possibilities From Military
F. Adams

ARVIDA CORP.

Mucher

Value of Research and Development Work in
Electronic
Components—L. B, Davis___
__;

dered

7.;/77

expanding

Trends

•

two-. 7

Outlook—Victor

Rapid Progress Ahead for Electronic Data
Processing
7 —Owen B. Gardner
7_—
j

wiring for
permanently
etched or stamped.
The board is
made for,
say, a
television set,
and the wiring pattern and sol¬

Electronics

Seen

Profit

weight.

electric circuit

orbital

\r..

at work

been achieved in

commu¬

and

A..

Cover

Space Age

—Charles

can

Signal

Sealed

Notable

are

ties of specially equipped satellites

and

Praises

studying the possibili-

now

bulk

sys¬

RCA

the Army Signal Corps, opens the
space

Radio-Electronic

The

be buiit
amplifier, oscil¬

Army

ACOUSTICA

The

holds,

vehicles.

module,

now

ASSOCIATES

Challenge—John L. BurnsI—

$5,000,000 contract with the 7

Dept.

STREET, NEW YORK

Telephone: WHitehall 4-6551

Future of Electronics

Viewing the Market Through Electronic Eyes
—Ira U; Cobleigh

for
development of the micromodule 7
concept to the point where ground
tactical, fixed plant, and airborne
systems can be sharply reduced

to perform functions that now re¬

way to

that

circuit design.

RCA is
year,

laboratory model in which a halfinch strip of germanium promises

WALL

Television-Electronics Industry

7—William H. Cooley

lator, filter and the like, in aggre¬
gate, to meet specified; needs in

Bnrn^

Obsolete Securities

13 '•

!_____

Dramatic Electronics' Advance Take

•;

space

to the development of a vast array
s*of.
new
devices,
including
one

was

and

to function

miniaturiza-

tem

one

—

single unit,

j* tion have led

significant breakthrough has 77
with the micromo- "r

missiles

for 1959

Hardin

The Sky Does Not Limit the

great promise for improvement of

A d-

vances

assemblies

concept

Articles

one-thousandth •_-£

been achieved
dule

are

.terns.

lonjg-

range

little

compressed "by RCA ;7 into ?;
micromodules no bigger than a
cough drop.
7 '
•
v ;7

missiles, and

__•

out!

been

our

new
-

—Lowell

transistors," ^
wiring and other elements, have - •

and

obsoletes

your

you

of miniaturization.

area

Pick

Let cask for

help bail

Everyone?—Simeon Goldstein 11

Unpleasant Facts Regarding the Currency Outlook

—-Franz

OF TAXES?

Implications of Agriculture for Mortgage Lenders and Others

Experimental circuits, including
entire

accu-

r a c
y
to
-planes

DEEP IN THE HEART

—their present bulk.

adding startl{ng - dimen¬

the

cases

control

devices

-•>,

•

concept can reduce many defense y
items to one-tenth—and in some V

elec¬

tronic

;

A revolutionary new micromodule

helping the United States

are

Are Growth Stocks Suitable for

The

rpggedness and compactness of the'

sealed circuit in the Sage system and in missiles.

llCHTfnSTtH
AJND COMPANY

_____Cover

State-ism—F. A. Hayek__

Growth—Jesse W. Tapp__

The writer refers to his firm's advance in micromodule

concept, and praises the

Outlook—Anthony Gaubis

World's Oil Activities Shape a New
Complexion of Operations
—Leslie Fourton

partners with Government in prepared¬

Page

Facing Instalment Credit Problems to Achieve Balanced

Expansion in defense electronics amounting to at least 14%
over
last year's $3.6 billion, paced by miniaturization, is
forecast for 1959 by RCA head. Mr. Burns calls on business to
ness.

Market

Inflation and Welfare

President, Radio Corporation of America, New York City

take the initiative

Balle

STate

2-0613)

Bank

Other

and

$45.00 per

Note—On

the

rate

foreign
must

Quotation

year

Record

—

Monthly

(Foreign Postage extra

account

WHitehall 3-3960

Publications

exchange

subscriptions

be made in New

the fluctuations

remittances

Teletype NY
Direct

1-4040 & 4041
Wire

and advertisement*
York funds

PHILADELPHIA

The Commercial and Financial Chronicle

Thursday, March 19, 1959

(1296)

that

Viewing the Maiket Thiongh
Electronic Eyes
By

reflections

certain issues which seem

personic 'Velocities and stratospheric
For

•

—

retail
units

shave with

electric

from

bulb;

breakfast
from

with

elec-

trijc

toaster

and

electric

coffee

(The

best

year

histori¬

and

Columbia has

said.

continues;

broadcasting

through

perco¬

lator; turn on

was

the

ticated

recent and

sophis-

embellishments

same,

versatile that it may compete
with
transistors.
RCA
should
earn $2.70 this year. It bounced
up past 56 last week
but even

share.

that

Hoffman has

estimated radio

the

output for 1959, 4.5 million will be
clock and portable units.

5,170,000 of the TV sets will be very high frequency re¬
and the remaining 330,000 units will be ultra high fre¬

Some

ceivers

quency.

of overall TV manufacture.

Bank
a

this week show an increase compared with

Preliminary figures

ago.

year

based

clearings

from

to obtain weekly clearings will be 2.7% above those for the cor¬
responding week last year. Our preliminary totals stand at $23,958,206,732 against $23,320,852,766 for the same week in 1958.
At this center there is a loss for the week ended March 14 of

Our comparative summary for

York

week ended March 14 at the

turns to
a

look

977,000,000
645,769,791

656,715,672

Factors Behind

Investment

Week

are

causing

upsurge

"Purchasing

McGraw-Hill publication.
In a survey of purchasing executives, the publication found
that they expect the new firmer trend in prices to continue into
Spring, and most expect prices to run about a half-a-cent a pound
more than current copper prices, with some part of the rise com¬
Week,"

ing within the next two months.
Much of the force will come from rising copper

consumption.

higher demand, copper prices are expected to move upward.
And since labor-management contracts in the copper indus¬

With

tries end

this Summer, a few

buyers feel a copper

strike is very

possible; they want to hedge against a strike and beat price
creases
by carrying somewhat higher-than-normal stocks.

This
B

Emerson, through its electronic
division (which accounts for about
of
gross),
has
been
supplying elements for the Honest

Corporation offers a supervised
portfolio of securities in a selected group of com¬
panies participating in the general field of electronics.
Prospectus and other information may be obtained
without obligation from

John

around

will

feast-and-famine

not appear too

We
cover

INCORPORATED
•

Bank of America

BOSTON

and

•

CHICAGO

BIdg.

•

SAN DIEGO

for

the

steel

the

haven't
the

happen:
If there
that

would

strike—the mills, of course,
bard

very

to make up.

will lose production

Once a strike starts, it
Continued on page 34

the

common

time

begin to
interesting

sider
rises!

A.D.R.*

Quoted

Bought -Sold

does
*

electronic

have gone just a

FC-l

STATE

BEECH AM GROUP LTD.

present price

Review available

request

Alfred L. Vanden Broeck & Co.

shares,

some

Members:

Servo

little mad. Con-

the

1958-59

price

ADDRESS
CITY

For 1 tanks. Brokers and Dealers

exalted.

dozens

exciting

earn

from 33/4

Continued

to past 43;

page

mills

regardless of whether there is a steel strike, according to "The
Iron Age,," national metalwoi'king weekly.
"Iron Age" said the mills are having their "feast" in the first
half of the year as their customers load up with inventory due
to uncertainty of the steel labor outlook.
But in the second half, said "Iron Age," here's what will

New

York Stock

Exchange

about which this market seems to

San Diego 1, Cal.

NAME

which

year

in¬

Steel Industry?
year

missiles.

should

this

of around 56 for the

SALIK & CO.
NEW YORK

$4.30

John

Electric

Emerson

basis

Little

and

■

higher prices

in copper buying, reports

one-third

Electronics Investment

)•

Copper Buying Upsurge

business, strike fears and the threat of

Better

This is prob¬
ably the lowest cost company in
the business.
It turns out prin¬
cipally motors for air condition¬
ing and refrigeration units; and
its motors are uniquely effective
in
many
automation
systems.

Corporation

}

construction, primary metals,
electrical equipment, and lumber industries, initial claims for
unemployment insurance fell 17% during the week ending Feb.
28, and a year-to-year decline of 40% prevailed.
The most
noticeable decreases occurred in California, Illinois, New York,
and Pennsylvania, reports Dun & Bradstreet, Inc.
:

Manufacturing Co.

Electronics

4.1

+ 10.0
-j- 8.o
+ 1.7

1,111,598,290

Reflecting iewer layoffs in the

Electric and

Emerson

—

Unemployment Claims Dip 17% for Feb. 28

Others

in electronics
motors, you ought to take

1958

$12,733,988,811

$12,208,675,620
1,223,688,042
1,060,000,000

Boston

dis¬

interest

your

"Chronicle"

compiled by the

telegraphic advices from the chief cities of the country,
for the week ended Saturday, March 14, clearings
all cities of the United States from which it is possible
on

indicate that

Feast and Famine Year for
If

March 14th Week^

Nationwide Bank Clearings Up 2.7%

team.
and

\ +/

magazine said the lowered UHF production would comprise only 6% of the 1959 TV totals and represent a continuation
of the drop in UHF production. In 1956, UHF sets made up 13.5%;
The

Chicago ——
Philadelphia

played for several years a power¬
ful up-curve in sales and profits;
and benefits from a highly com¬
petent and respected management

Emerson

last

auto sets and nine million will be home,

New

paying $1, it should be re¬

membered

•

1959

bit full priced

seems a

/ ■

principal money centers was as follows;

year a gross of $50
anticipated with a cor¬
responding rise in per share net.

improved business conditions exert positive influ¬
the entire consumer electronics hiarket,"i the magazine

4.1%.

If the stock

-■

pro¬

over

said.

This

million

due

ence

against

be up 7.3%

„

4,918,000 sets

11.8% above the

"Of course,

control, guide, record, chart and a lead-off spot in any corporate pany is a major factor in milireport their astronautic courses, commentary on the industry. RCA ; ironies with 12 major production
Without electricity our
civiliza- earned $2.01 for 1958, almost 20% contracts and 16 R and D pro¬
tion
would
really
have
"tired below 1957. Broadcasting earnings grams covering a wide range of
blood"!
were sturdy but TV sets were a
products
from,
components
to
'
hard sell, and color TV, in which communication, radar, guidance
Industry Within an Industry
UCA has pioneered and soloed, and
navigation systems.
But
writing about electronics has had a tough time striking pay
Hoffman consumer products in¬
is tough.
You don't know where dirt. For this year a commend- clude a strong stereo line, and
to begin; and the terminal facili- able improvement seems in prostraditionally fine TV sets, and an
ties are infinite.
At the risk of pect. The Government order
improved distributor and dealer
over-simplification, however,we'll backlog is now in the order of organization to sell them. Hoffman
approach today's stint by dividing $310 million; Government anti- Semiconductor Division, now sev¬
electronics into two parts—con- trust action is no longer a threat; en
years
old, pioneered in the
sumer;
and industrial, commer- and much new romance to the silicon solar cell. Its semiconduc¬
cial, and military electronics. The company was added recently with tor business is one of the fastest
consumer segment is much better
the announcement of a new, thim- growing lines.
known and easier to talk about, ble-sized electronic receiver, the
For 1958 Hoffman grossed about
It consists
broadly of television "Nuvistor," a tube so small and $40 million and earned $2.30 per

sets, home, car, and portable radios, standard phonographs; and

the radio figure would

continuing high levels of replacement of obsolete receivers;
Steppecl-up auto production was cited as one factor underlying
the expected rise in radio production. •
■
; - '/*•■
J;

turned

would

and

magazine reported the brighter TV production picture
to the increasing number of second sets in homes and

The
was

presses,

1958,

year's 12.6 million units.

out, on electric RCA
columbfe, Broadcasting as a specialist in proprietary prod¬
ucts
and
all about jazzy rockets
propretary know-how,
taking off from Cape Canaveral,
As the largest and most diverse abetted by a strong marketing
60% of whose costs are for the company
in
electronics Radio organization. Through Hoffman
electronic
gadgets that activate Corporation of America deserves Laboratories
Division
the
com¬

paper,,

totals

duced

"My Fair Lady" both in present
boxoffice and the movie and TV
in

3,716,898 for 1957,
the radio or
Perhaps the most romantic of
the best year in history. Totally,
the big electronics recently (ex¬
TV for the
consumer
products accounted in
morning
cept perhaps IBM) has beeu Iri-^
1958 for 17% of the electronic in¬
news
ternational
Telephone.
It took
(which
Ira U. Cobleigh
dustry dollar volume, as against
had
been
years to get above $30 a share but
20% in the preceding year. But
since it got above that, it moved
gathered by
this
consumer
section was the
like a rocket to new highs. Since
telephone, cable, and teletype);
start the car with a battery driven or|ly
lading segment in 1958. the 2-for-l split it crossed to 42Vz starter, and make it go with spark Elsewhere the industry was in (85 for the old stock). Here's a
plugs; ride up to our office in an one prolonged roaring dynamic company where patience has been
electric
elevator; dictate to an upcurve.
Both parts will , move rewarded; and- the stock has aelectronic recording machine; sign -'head again this year, with better traeted in recent months an en¬
letters tapped out by Tillie on the
consumer TV sales, and a heavy thusiastic market following. Div¬
electric typewriter; pay bills pre- upsurge in hi-fi and stereo; and, idend is $1.
Another interesting company is
pared
by
electric bookkeeping pp the other side, broad expanmachines: look at an electric stock si on across-the-board, sparked by Hoffman
Electronics
Corp., the
ticker at lunch time; phone for a la $5 billion spending budget for lengthened shadow of its founder
plane reservation; and while avi- electronic hardware for missiles and President, Mr. H. Leslie Hoff¬
man. It has moved swiftly forward
ating on a radar beam, read in a and rockets alone.
1958

set production are

gains in radio and television

■

The

big property

Failures

predicted for 1959 by "Electronics," the McGraw-Hill publication.
Preliminary figures indicate 5.5 million TV sets and 13.5 mil¬
lion radio receivers will be turned out this year, the magazine

several
hundred
sub¬
scribers.
Columbia's
traditional
excellence
in
earn i n g
power

15,217,059

Industry

Substantial

Club

Columbia- Record

Index

Price

Business

boasting

12,700,000

against

and

its

Auto Production

1947 with 20.8 million
units sold.)
Television sets, sold rights for the future. At 40 CBS
at retail in
1958, totaled around still has an attractive look with
5,250,000, against 6,560,220 in 1957 possible earnings of around $3.45
(the big TV year was 1955 with for-1959;. Dividend is $1.20; land
7.4 million unit sales). In single CBS has
paid cash dividends con¬
phonographs, not including those tinuously since 1931. "'
?
combined in radio or TV cabinets,
ITT a nd Hoffman Electronics
sales were about 2.9 million in
cally

elec-

tric

about

1958,

sales

1957.

ra¬

light

zor

altitudes in recent markets

hi-fi and stereophonic sound. For
these consumer items, business
by an
electric alarm was off iu 1958.
For example
a home heat-controlled
radios (all types) recorded a total

electronically;

been

Output
Trade

Commodity Price Index
Food

progressive company
pioneering by introducing the LP
record
in 1948; now leading in
the
field of stereophonies;
and

consider that we
electronic world! We're

wakened

clock,

State of Trade

Columbia

$400 million mark.

has

openers,

live in an

the

Retail

running well over

1959 with sales

and some
to have developed su¬

Electric

Carloadings

Co.
have another good year in

should

Production

Steel

The

Broadcasting

Columbia

electronic shares in general;

is only 21 times
projected earnings

1959,, and 21 is a quite modest
times/earning ratio for a first rate
electronic share these days.

Enterprise Economist

Current comment

foregoing

for

COBLEIGII

IRA U.

Dr.

high

new

the

Tel:

Liberty St., New York 5

Teletype NY 1-4686

3-8880
Private.

Wire

System

Canada

Volume

189

Number 5830

The Commercial and Financial Chronicle

(1297)

whether

Inflation and Welfare State-ism
By DR. F. A. IIA YEK*
i

Internationally

is involved in the Mu¬

Security

Manpower

Program

than the
dollar amounts requested
by Pres¬
ident

Eisenhower

($3,930,000,000)
and by the
Draper Com¬
mittee
($1,000,000,000 for
economic

as¬

sistance

and

$2,400,000,000
in
military
aid).

For

ample,

ex¬

some¬

thing must be
done
of

from

donees

of the
Wilfred

May

way

getting; for

due

some

almost

30%

for

ness

respondees

imagining

USSR

assisted

has

must

take

concrete

stimulating

measures

the

flow

private investment to the under¬

developed countries—through tax

Plan

plete

than

United States.

well

providing

protection

in¬

com¬

proportion

25 to 1 has been the fact.

Our

Un-Statesmanlike

Although

inconsistent

"statesmanlike"
current

trade

with

giving

trend

is
our
international

policy.

Highlighting

our

intensification of protectionism is

the

loading of the dice favoring
run
effort is*
unavoidable, more can be done to
give

our

democracy

its

"public

new

mandatory restrictions on
oil imports. And our
increasing
chauvinism toward England was

relations" due.
And then, to combat Red
China's
economic penetration in Asia more

impressively pointed out last week
by Sir David Eccles, her dashing

than

our

less it

money

required,
given in absolutely

un¬
un¬

limited

amounts.
As
one
of
the weapons in her trade warfare
for
political

ends,

through her
branches, she ex¬

Bank of China's

tends

completely

credit

uneconomic

terms—extending from 10

to 20 years at a

% interest rate.

Minister of the Board of Trade in
address

tween

our

Four

and

the

aid extended

our

Needed Clarification of Objectives

must

done

toward

defining and delineating

our

eco¬

nomic and political aims. In con¬
trast to the Kremlin which knows

exactly what it wants
of

the

way,

confused

from the
vated

our

every

policies

techniques

ever

the United

tations of

gaining
our

our

money

through

wool

any

over

possible credit from

largesse.

negative
cited our

ties,

and

the

tariff

im¬

quotas
Britain's

pluses
and
foreign aid activi¬

irrespective

and

amount

other

and

the
our

Mutual

the

Security

largesse which the Congress de¬
cides on, surely the outpouring of
the

half

dollars
the

constitutes

picture!

depreciation
of
r

the

merely

value

ishing

„

coin

issuing

and

guard
against the cruder ways in which
currencies
were
destroyed
by
governments paying their way by

issuing

money.
The same
nowadays, however,
by subtler procedures the public
is less likely to notice.

done

of the chief features

one

of the

Welfare State tends to act
in this direction. The
wage pres¬
of

sure

bined

the

with

ployment

labor
the

unions

current

policies
and

manner,

of money.

works

connection

will

partnership.
make

his

this

the

March 16, 1959

obligations

exceeded

tax

Inflation

that

their

the

which

about

25%.i

that, be¬

seen

progres¬

inflation

tends

proportion¬
incomes, the

revenue

and

Mr.

that

period.

institutions

inflation

This
to

The

associated with

monwealth

the

and

other

mem¬

of the; "Sterling Bloc" the
corresponding percentage would

50%, and for Germany,
of the wiping out of all
pre-1924 savings, still as high as
37%? ,The investors in all those
countries
were!, still
very
for¬
tunate, however, compared with
those in
France or Italy, who
in spite

would have retained only between
11 and 12% of what the value of
their
savings
over
the
period

ought to have been at the begin¬
ning of 1958.3

give
sta¬

question

money of the
and invested it

value

fixed rate of interest of 4%.

corresponds

the

return

the

small

in Western countries

saver

vestment

result

approximately

which

have obtained

could

the kind of in¬

accessible

figures quoted in the
calculations

him,

text

the

for

made

are
me

Mr. Salvator V.
I
gratefully

Ferrera, whose assistance
acknowledge.
They
were

necessarily

confined
of

cost

whole

those

countries

living index numbers
forty years period

the

were
readily
available.
I
am
deliber¬
ately giving in the text only round fig¬
ures, because I do not believe that the

results

give
the

this

orders

kind

calculation

can

than

rough indications of
magnitude involved.
For

those who wish fuller figures I give here
the results for all the countries for which
the calculation has been made with one

our

modern economic system de¬

veloped and during which wealth
and incomes grew fastest.
Dur¬
ing the 200 years preceding 1914,
during which Great Britain ad¬

hered to

the Gold Standard, the
price level, so far as this can be
meaningfully measured over such
a
period, fluctuated around a con¬
stant level, ending up pretty well
where it started and (except dur¬
ing the period of the Napoleonic
wars

when the Gold Standard

abandoned)
more

than

rarely

third above

that average level.4

the United
1749-1939
seem

the

Similarly, in

there

also

does

Continued

United

59.7

Kingdom

___

Sweden
New

effects
of

50.1

Zealand

—.

Norway
Egypt

48.2
48.1

Netherlands

44.0

Ireland

42.1

49.4

Peru

37.1
28.8
:

20.6

Italy

11.4

France

11.4
8.4

course

the

France

does

not

was

which

the demand for welfare

take

considerable
consequent

French

Franc

have

some

further

the

course

4 There

available

can

restrictions

rent

for

hundred-year
trend

1936.

our

subsidies

controls

iture.

Department

and

prices

all

and

kinds

■

sell

inflation

block?

expend¬

have

recent

times provided the chief grounds
for an extension of government
controls
need

too

well

large

The extent to which the ef¬

fects

Van Alstyne, Noel & Co.

known

illustration.

But

Gcfll

ess

Marketing Department

the

full degree to which for now over

Members
"

'
.

New York Stock Exchange

American Stock Exchange

•Excerpts from a forthcoming book by
Hayek, "The Constitution of
expected to be published in

Professor
•

Liberty",
1960.

1 See

52 WALL

STREET, NEW YORK 5

Clark, "Public Finance and
Changes in the Value of Money", EJ.
LV, 1945, and compare the discussion of
his thesis by J. A. Pechman, T. Mayer
and D. T. Smith in R. E. & S., XXXIV,
1952.

Merrill

Lynch, Pierce, Fenner

Smith

INCORPORATED

Colin

period, but the approxi¬
of prices can be
gauged by
piecing together the data given by Eliza¬
beth
W.
Gilboy, "The Cost of Living
and
Real Wages in Eighteenth'
Century
England", R. E. & S. XVIII, 1936, and
R. S. Tucker, "Real Wages of Artisans
in London,
1729-1935", Journal of the
American
Statistical Association XXXI,
mate

dwellings,

de¬

continuous index number
the
whole
of
this
two-

already considered

others which we
yet have to examine or
merely mention here, such as

the

devaluation)

this

into account

the

(and

created

measures

is true not only of
we

State

even
the effects

have

page

concerned,

1958.

49.9

Denmark

Germany
Belgium

preciation

50.2

58.3

States
of

United

far

52.3

Canada

Union

3 So

70.0

inflation, it is
it

not

signifi-

Stat-ism

Welfare

below

States, for the period

have occurred

was

changing

%
Switzerland

Greece

Welfare

true that

inflation

For most of

true, however, that the

tend to favor

food

Dealer Relations

what

to expect.

Interacting
If it is

off

would

but also to many

ANDREW M. BLUM
now

who

„

Depreciation

either

best

perhaps

nec¬

system of

taxation

increase

Canada

about '58%

reason

well

in the United

saver

the countries of the British Com¬

decimal:

income

have also

under

those

announce

this

whenever

national

took

This

pleased to

the

burden

head¬

quarters at the firm's Roanoke of¬
fice, 302 South Jefferson Street.

real

same

which

ably to have resorted to inflation

get

relatively

and'

namely

this would
as
much as

It is usual today to dismiss the
importance of this long and world¬
it, wide
inflationary trend with the
was intended to answer was what
comment that things have always
would be the present value iii
been like that and that
history is
various countries of the accumu¬
a
history of inflation.
lated savings of a person who for largely
However
true
that may be in
a period of 45
years from 1913 to
general, it is certainly not true of
1958, had every year put aside
that modern period during which
the equivalent in

for

not,
that
governments seem invari¬

lighten

The

extent is

survey.2

for

also deserves

whether

essary
in fact

sive

for its

Quantitative

em¬

the

notice,

Still

States

generation whose working

com¬

fqll

heavy burdens
which governments are assuming
through
old
age
pensions
are
likely to lead to repeated attempts
to lighten them by
reducing the
value

understood.

covers

2 The

Every

of
en¬

be around

paper

they

William

ex¬

cessive quantities of paper
money.
It is possible that the
present gen¬
eration
is
more
on
its

RICHMOND, Va.—J. C. Wheat ately
more
than
&
Co., 1001 East Main Street, temptation to resort to
members of the New York Stock is
greatly strengthened.
Exchange, on April 1 will admit
Cain

F".dr.ch A. Hay.k

re-

the

re¬

part

world,

where

amounted

70%.

ciently

tistical

have
the

the

would be the
still

the point of retiring if we
here the results of a simple

suit of government either dimin¬

can

developments

Switzerland,
have

the whole
have been

major in¬

been

was

It seems that there is only one

It will help to gain a
concep¬
tion of what inflation has done to
the savings of the generation now

flations of the

arc

occa¬

past

had

country

Record

money,

the

money
What

bers

The

commod¬

world

have

the

ity

throughout

constant.

pro¬

And

Admit Two Partners

Meredith

have

would

actually have had in 1958?

falls

longed

cause

the

hundred

one
saver

value

determined by an unprecedented
inflationary trend is not suffi¬

life
c

fixed

J. C. Wheat Co. to

Ronald

was

titled to expect he would possess
in the end, would such a saver

earlier decisions.

own

years

of the

cur-

measure

Meredith

guilty conscience

Ferry

contracts,

Whatever

the

Nations, with manifes¬

latter

justifiably

Greers

minuses of

become

larger payments for dis¬

pensation

one

step

Export-Import Bank, to pressing
for

the

against
high quality goods.

ranging

through

the

discriminating

frankly politically-moti¬

channeling

the

position

throughout

Southeast Asia.

aid

lead and zinc, the dis¬
qualification
of
British
tenders
electrical

from

Such

gen¬

for

benefit to

effec¬

long-cpntinued,

other

other.

period of delivery, but ac¬
tually up to the time of payment.

any

our current adoption of
restrictive commercial policies on

petition, not only at sale time

pricing, nullify

Chamber

hand; and

quotas

strategic techniques by the
Communists, together with dump¬
ing and other varieties of political

the

London.

erosity in pouring out
dollars
through the Marshall Plan, Point

category

tively pointed out "the contrast be¬

Furthermore prices on goods sold
are
guaranteed against all com¬
at the

Commerce

form

this real value which he

is depre¬

money

the

mained

the influence it has had on the ef¬
forts to provide for their old age

the

causes

sional

such

-authoritarianly

been the chief

been

Trade

Policies

Directly

the

had

control

Though

the
the

captives of their

government

there

Five

has

Actually the
in

reverse

the

that

With

monetary policy, the chief threat
directly on-the-beam of in this field has become inflation.
combatting
the
politico-trade Governments everywhere and at
tactics from Moscow and Peiping,
all times have
toward

to retain its initial

And

nowadays

warns

leader

price rises of past quarter century represent major

governments the

and government.

India's

School,

formerly

stimulating effect, it must pro¬
ceed at a rate accelerating
always faster than was foreseen,
with cost-planning by business
losing all meaning. Points out
tempting quality of inflationary policies, and that they make

service in busi¬

overseas

out

for inflation

professional, managerial and
technical personnel, and help them
develop their own.
We can do
much more in training our young
men

economist,

change from previous two-century record. Maintains in order

measures

Points

our

develop trained man¬
We must supply the under¬
developed : countries with much

our

largesse
disclosed

Year

increase

power.

incentives

for

Shortage

known

by subtler methods less recognizable by the public; as
through union wage pressures and full employment policies.

/"Gallup Poll" taken in In-: vestors..;

recent

dia

must

money
efforts to

the

amount

ciated

along with the ladling-out

our

credit

Also

represent

Economics, The University of Chicago

so-called Austrian

ALONG WITH DISHING OUT THE MONEY
Far

Trofessor of

actual

possessed at the end of the period

By A. WILFRED MAY

tual

its

saving
account,
government
bonds, or life insurance. We shall

70 PINE STREET

NEW YORK 5, N. Y*

Offices in 112 Cities

The Commercial and Financial Chronicle

Thursday, March 19, 1959

(1298)

lem of balanced economic

Facing Instalment Credit Problems
To Achieve Balanced Growth
By JESSE W.

TAPP*

Los

not

Angeles, California

credit

the proper

importance
the

use

credit
lation

re¬

bal-

anced eco¬

nomic growth:

our

country

(1)

ly, we hear it
have balanced

goods
and

the
Jesse

Tapp

margin has greatly increased over
the

and if given sufficient
freedom, our economy is

years;

rein

of. durable

consumer

demand

goods

and
instalment

for

credit. " Enthusiasm

for

new-

improved appliances may, at times,
in affecting

be far more important

spending decisions than

consumer

changes in consumer income and

expectations. Some observers
maintain that a significant por¬
tion

decline

the

I would, not awant to leave the
~~

auto

sales

and

the

said that we must

Continued.ori

Stake

society.

Yout

—-

Our" Changing. Man*

power (free); Youth Employ*
ment Publications
(free); Oc¬
-

York

1, NvY.

the

New

lustrated

Gas

Industry—Il¬

bbokdef

phases of the industry—Ameri¬
can Gas Association, Public In*
formation

Bureau,

420 Lexing¬

ton

Ave., New York 17, N. Y.,
single copies on request (quan¬
tity prices on request).

;

cupations in Space Exploration
(free) —U. S. Department of
Labor, 341
Ninth Ave., New

Meet

Industry

—

growth:
to

Publications

Manpower

productivity in- f York 17 NY'"
away, from those :Aia„ka
Frontier for

and

Develop*

Co., Att.: John S. Dickson,
John St., Lowell, Mass.5- .< £*;v'y

low

ment

certainly not in relation to
problem of inflation. A spokes¬

vestments

Industrial

—Lowell

may

resources

page,

—

be able to engage in
openhanded activities in other di¬
rections, some of which activities,
I am told, have not been highly
successful in relation to growth

But increasing¬

economic

it.'.'Actually, there are many sep¬
arate factors at work affecting the

;
partment: Seattle First National Mutual Savings Banking, Impor¬
tant Facts About—Summary of
corollary observation ^may be
, Bank,'Second Avenue & Columthis poult. We .take
information about mutual, sav¬
inflation.
bia st; Seattle 4, Wash, (paper).
When we state our objective as great pride m the fact that we; An;<>rio*n
ings banking—National Asso¬
Fx-uress
Credit
Card
balanced economic growth—with¬ have a high productive and genu-j Ame"can
Lxpress Credit Laid
ciation of Mutual Savings Banks,
Domestic^ Directory 1959—List-^ u
out inflation—it is easy to conjure inely dynamic economy. We boast ■'
60 East 42nd Street, New York
ing of services and establish¬
the
number
and
variety of
up all sorts of problems and con¬ of
17, N. Y. (on request).
'
ments honoring; American Ex¬
troversies.
The problem is made products which are in general use
National Foreign Trade Council,
press Credit; cards in the U. S.,
all the more complex by the fact today, and which were the excep¬
Inc.
tThe Record for 1958 -4
Bahamas, Bermuda, Caribbean,
that the portion of our national tion or undreamed of a decade
National Foreign Trade Council*
Canada,
Hawaii, Mexico and.
energies which must be channeled ago. We strive for change in the
Inc., Ill Broadway, New York
Central America — American
into
defense
activities does not product mix of our economy, and
;• 6, N. Y.
(paper), a
Express Company, 65 Broadway*
add
to
the goods
and services often overlook the fact that this
.New,York 6, N. Y.
Prospect for Wages and Hours in
means
-

;

1. This

v a

that - fluctuations

and

ventured at

needs for surv

..economists

purchases,

purchase

impression of tremendous fluctu-

ments

anced

and services

above

one

carrying of inventories or for
mortgages in order that govern¬

what's more, we want bal¬
economic growth without

and,

productivity
capita in

per

over

to continue.

gram

high

terms of

of our ad¬ future wars, we can boast of an
man for the United States Cham¬
which are of unsurpassed per capita standard
ber of Commerce recently put it
when we talk of living expressed in terms of
this way: "On grounds of growth,
goods and services consumed by
our people.
This process of eco¬ paradoxically, many people sug¬
gest that we should subsidize de-;
nomic
growth has been greatly
aided by capital accumulation and dining industries; insulate prd-^Adequacy Of Banking Facilities in
ducers, workers, or regions from
; Nassau County—Savings Banks
by great strides in technological
economic changes; reduce mobile'
Association of the State of New
achievement in a variety of fields.
h York, llOEast 42nd Street, New
We all want and expect this pro¬ ty of labor and capital; and divert

favored

with

cally.no informed opinion among

these

leads

the

certain expenditures for past, present, and

are

not the only
this manner,

durable

business activity , can be entirely in recent years can be explained
the rationing of credit available, eliminated
from a free . market by a combination of social and
the consumer dmablei/goods' economy." (Woodlief Thomas)
psychological factors
that
have

characteristics

instalment

are

behave in

/'There is, and has been, practiof*

example,

oneewho

industries for plant and^equipment
modernization and expansion for

for consideration the extent of non-discrimination sup¬
posed to exist in exercise of quantitative monetary controls.

public in-

ations

all resulting from instalment cred--

to ask whether we must intervene

poses

about

in the

contemplation

for

Some

The writer describes difficulties in qualitative
control selection, and administration, and hopes the answer is
not in direction of more and more controls. Nevertheless, he

vital

Hence,

utilization of eco-, instalment credit

resources

matters,

fiscal policies.

economy

its regulation

and

act

consumer

provide instalment
should keep this
in mind in connection with all
discussions of the role of intal-

terest.

leagues that renewed attempts to expand credit controls—going
beyond instalment credit—are inevitable unless bankers cease
adopting a negative attitude toward the effect of instalment
credit and give strong support to sound public and private

basic

a mild drag on other
spending out of income.?
is not uncommon for
consumers to borrow in order to
increase expenditures at just those
times when the economy is booming and
things look
good
all
around.
This is a very human
sort of behavior, and the users of

may

use

facilities

credit

and

forth succinct views on "balanced economic
growth" without inflation and with "defense first," and the
role of instalment credit therein. The banker warns his col¬

vanced

Those who

the interest of economic stability,

Mr. Tapp sets

We should keep in mind

favored.

and those who

nomic

growth

remaining segments which

the

ment

Board, Bank of America N.T.&S.A.

Chairman of the

in
are

capable of making this margin an
ever growing one. Stated another
way, the level and broad distribu¬
tion of personal incomes in our
economy is capable of providing

—

which

are

available to

people
Furthermore, the

changes in the employment

our

•

1975—Clark

Kerr—Institute of

Compaiii.es Required
Industrial Relations, University
to File Annual Reports with the
of
California,
201 .California
defense activities of
Securities and Exchange Commass markets for our increasingly
governments new product mix. We strive '• to
at all levels can, as we all know, achieve
production
techniques, ,v mission (covers .3,109 issuers of ..Hall, Berkeley 4, Calif, (paper),
productive private economy.
•
'* : "•y >X.
create all sorts of problems,for the which
make
us
less
securities)—Securities and Ex- y;; 20 cents.yVV,.:..
dependent
(2) Mass distribution techniques
private sectors of our economy. upon manpower of a "hard work"-- -..change Commission, Washing-,
are
required in our economy in
There is general agreement that nature,
and which give us <the
;
ton, D. C.
I .
order to support our capabilities
as

consumers.

very

size of the defense and non-

of the various factors

tion, which

of produc--

necessary

are

for .this

•

Named Director

^
adequate defense must come first, benefits of a maximum division Evaluation qf the. Present IJnderproduction of con¬
Directors of Sealed Power;Cor¬
although
there
is
considerable of labor. Our round abpuUproc-standing.. of
MetaLCutting %sumer goods.
The device of in¬
difference of opinion as to what esses become more complex year^; Detailed
rre.s e a r c h ^ repo.rt poration, ■'(. Muskegon,/ Mich.;
an¬
stalment
credits, properly used,
constitutes adequate defense.
by year. With all of this we tend . ; —American
Society
of
Tool nounce that Andrew M. Baird of
is capable of
giving 4 additional
.Engineers, 10700 Puritan, Detroit Chicago has ; been.;designated to
There should be some measure to resent some of the inevitable
breadth to both
the production
complete
the
of agreement, however, that our consequences of our rapidly
38, Mich., $7.50.
and
distribution
aspects of our
u nexpired
changing and improving economy. Federal Deposit Insurance Corpoobjective
in
economic
growth
advanced economy.
term 1 of; Carl
should be to make adequate pro¬ We like to set for ourselves a few. W ration Report to Insured Banks
(3) The increasing complexity
:'P.r'Damm,.deT
vision for our national defense extravagant goals like "full em¬ S V.-i-f: FederaJDeposit *■> Insurance
and cost of the gadgets which are
ceased,
as :/a
and, in addition, to provide for a ployment without inflation,'' "per^ ..-v Corporation, Washington, D. G.
a part of
our standard of living,
member of
balanced
growth
at
the < (paper). :
continuing
improvement in the fectly
transportation, and other activities
•: the company's
quantity and quality of the goods highest possible rate—without in¬ Freedom Chooses Slavery — J.
can hardly be available on a suffi¬
board, -and
and services which are available flation," "parity prices for farm
; > Freire d'Andrade—Coward-Mcciently broad scale without the
that his name
for consumption.
products with or without ; infla-;
use
of an important measure of
i^'Cann,; Inc., -210'. Madison Ave,
will be p r etion," "ever increasing maximum i
i When we turn; to the problem
some type of instalment credit.
New York, N. Y. (cloth), $3.50.
sented at the
wages," etc., etc. We would be a
In our type of economy then, of balanced economic growth In
:
annual
meet¬
frustrated
people indeed ' if we Health Insurance — O. D. Dickerthe important role of instalment the loosely defined nondefense br
V
were
not
sop : — Richard D. Irwin, In ,'.;,
ing of stock-willing to settle lor
sectors of our
credit in contributing to economic nongovernmental
" '''
Home wood, 111., (cloth), $0.
holde rsv in
something less than perfection' in
economy, we encounter all sorts
growth is undeniable.
the
attainment
of
these
April for elec¬
goals IIow the Securities Market Affects
of practical difficulties. How
,

the

mass

;

•

„

Economic Growth,

Defense

and

much
governmental intervention should

which

set for

ourselves, often

•y Your Savings or Thrift Fund

tion

The concept of economic growth
terms
of
goods and services

produced

Over

years,

fairly

simple one.
accomplish¬
ments in this respect have been
very
great,
although
at
times
sporadic.
In spite of our large
♦An

the

address

National

our

Mr. Tapp

Instalment

Credit

before

the

Conference

sponsored by the Instalment Credit Com¬
mission

the

American

Bankers

Asso¬

ciation, Chicago, 111., March 9, 1959.

sanctioned

such

fields

somewhat cavalier fashion.v, :.

Information

Service,

Andrew

Baird

for

full

Mr.

Andrew Blum Joins

used when

consider the prob-

day purchase ofsuch as recent
groceries';,^
haircuts.
Factors
and

l694fc

STATE AND MUNICIPAL BONDS

CORPORATE BONDS

income:

even

near-term

confident
more

about

his
ex¬

pects his income to be rising short¬

Robinson-Humphrey £omparty,lnc.

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

1, GEORGIA

DISTANCE

421

ly. Conversely, during periods of
depressed economic activity when
is

,...

„

Journal of the Institute of Bankr
ers,

Feb."

articles

Finance

1959

—

Containing

The Economic Scene,

for -.Public

the

Not

only

new

purchases cur-

the Dealer Relations

,He

was

formerly

with H. Hentz & Co.

Fur-

Two With Revel

less

are

firm

Department.

Bodies;

Bankers and Their Books;
,,

Van

certain, postpon-"
rabies,, durables among them,-.tend
-

Noel

Alstyne, Noel & Co., 52
Wall Street, New York City, mem¬
Relations Section, Princeton.
bers of the New York Stock Ex¬
University>
Princeton,
N.
J.
change, announced that Andrew
(paper), 30 cents.
M. Blum is now associated with

Notes on G u a r a n t e y
Abroad* Legal Decisions Affectto be/the first expenditures toLtie7+ uig!Bankers;,Btc. — Institute of
curtailed, especially if such pur-"
®ai^eoS'd[j01T! i
' London,
chases
require going into debt.
E. C. 3, England.
income

Van Alstyne,

Ina„strial Relations, 1958—A bibliograph of outstanding books—
Selected References, Industrial

changes
in income play a major role in the
timing of durable expenditures."..
One is more apt to go into debt
for a new car or a TV purchase
expected

when

LOCAL STOCKS

Hewitt

yvv\:>.'V
=. Inc.,
Libertyville, 111., 12 cents
housing or agriculture? I mention
Effect on Business Cycle
v ;
per copy up to 500 copies (mini- Vice-President and Director of A.
only two of the fields where bal¬
Becker &
Co. Incorporated,
We all know that a substantial. :
mum order, $5) (sample copy to G.
anced
economic
growth,
as
it
investment bankers, and-a direc¬
might be determined in the mar¬ portion of durable goods purchases y employers on request),
ket place, has been tampered with are financed with instalment cred- how the Securities Market Affects tor of* Younker Brothers, Inc., a
Moines,
Iowa "department
Y'our Profit-" Sharing
Fund — Des
extensively for a quarter of a it. Purchases of durables tend to
*
Hewitt Information Service, store.'
century. It should be obvious that be more volatile than other forms
every concession that is made in of consumer spending. This is be¬
Inc.',' Libertyville, 111., 12 cents
the
favor of preferential treatment to cause
purchase of durables
per copy up to 500 copies (mini¬
certain segments of the economy requires a different sort of spend¬
mum
order, $5) (sample copy
narrows
the base which can be ing decision than the simple everyto employers on request).

ESTABLISHED

Th#

term.

Baird

Inflation

Low in Lowell—Booklet on labor

tailed, but the. necessity for re..conditions, transportation
paying previously incurred debt .technical resources of the

and
city

Miller

(Special to The Financial Chronicler

LOS
C.
are

Dausman
now

Miller

Street,
Coast

ANGELES, Calif.—Arthur

and

Edward Infante

connected

Co.,

650

members
Stock

with

Revel

South Spring
of the Pacific

Exchange.

Volume 189

Number

5830

The Commercial and Financial Chronicle

"(1299)

New Issues

$28,925,000

3%, 3.10% and 3.20% Bonds
Principal and semi-annual interest payable in Baltimore, Maryland. Coupon bonds in the denomination of $1,000
1
registerable as to principal only.'
\Y
,

Interest exempt from Federal Income Taxes under present laws

Tax exempt in the State of Maryland

Legal Investment, in

opinion, for Savings Banks and Trust Funds in New York and Maryland

our

These bonds, to be issued for various

municipal purposes, in the opinion of counsel will constitute valid and legally binding obligations of the
City of Baltimore and the City has power and is obligated to levy ad valorem taxes for the payment of the bonds and the interest thereon upon
all real property within the City, subject to taxation
by the City, without limitation as to rate or amount.

■

"Y V,

■

$7,900,000 School and Sewer Bonds.

AMOUNTS, RATES, MATURITIES AND PRICES

Dated

(Accrued interest to be added)

-i ijt'.

■■

•'

February 1,1959
Y"

Due August 1, 1963 to 1977 inclusive

(Semi-annual interest August 1 and February 1)

To Yield -f
,

Rate

Amount

$1,450,000

Due

Price

$9,225,000 School, Conduit, Health District Buildings
and Police Buildings Bonds

350,000

1350,000

1961

2.10

1962

2.25

3.20

1.90%

3.20

550,000

1960

3.20

1,450,000

1963

2.35

■' s'v

3.20

1964

3.20

1965
1966

Dated February 15,1959

2.55

3.20

2.45

1,050,000
650,000

•

3.20%

2.65

750,000

3.20

1967
1968

2.80

1,800,000

3.20

1969

1970
1971

/>•

(Semi-annual interest September 1 and March 1)

vy \

2.95

3.00

■y-

2,050,000"

3.00

$5,900,000 Water Bonds
Dated March 15,1959

1972

Due September 15,1968 to 1972 inclusive

ioo
,

Due September 1,1960 to 1971 inclusive

2-85

3.00

2,450,000

(Semi-annual interest September 15 and March 15)

X00

950,000

3.10

950,000

3.10

1,100,000

3.10

1,900,000

3.10

1976

100

1,625,000

3.20

y1977

3.15

Y,Yi

< 1,425,000

3.20

1978

Yl,275,000

:3.20

Dated March 1, 1959

2.75 ;y'/y-

3.20

2,450,000 '

$3,000,000 City Jail and Through Highway Bonds

1,800,000

Due August 15,1967 to 1981 inclusive

(Semi-annual interest August 15 and February 15)

;

1973

3.05

1974

.;*•

3.05

1975

100,

$900,000 Paving and Bridge, and Police Buildings Bonds

Dated April 1,1959

.1,275,000

1,275,000 i

1979

;

100

1980

Dated

1981

May 1,1959

Due November 1, 1960 and 1961

ioo;j

3.20

Y' Due October 1,1960, 1961 and 1965

(Semi-annual interest October 1 and April 1)

$2,000,000 Urban Renewal Bonds

3.15^X^Y-

•

3.20-

;

Y"- V

ioo

(Semi-annual interest November 1 and May 1)

When,

and if

issued and

received by

and subject to approval of legality

by Messrs. Wood, King & Dawson, Attorneys, New York, N. Y.

Bankers Trust

Company

The Chase Manhattan Bank
*'*

•

Lehman Brothers

-Harriman Ripley & Co.

Company

F. S. Moseley & Co.

First National Bank

Shearson, Hammill & Co.

John Nuveen & Co.

W. E. Hutton & Co.

Kean, Taylor & Co.

Tucker, Anthony & R. L. Day

Incorporated

First of Michigan Corporation

W. H. Morton & Co.

J. C. Bradford & Co.

Wood, Struthers & Co.

Incorporated

of St. Louis

A. M. Kidder & Co., Inc.

Spencer Trask & Co.

Salomon Bros. & Hutzler

R. W. Pressprich & Co.

Braun, Bosworth & Co.

The Boatmen's National Bank

John C. Legg & Company

Alex. Brown & Sons

Dick & Merle-Smith

Stein Bros. & Boyce

Bacon, Stevenson & Co.

F. S. Smithers & Co.

Chemical Corn Exchange Bank

of Western New York

•

Baker, Watts & Co.

Smith, Barney & Co.

■

Mercantile Trust Company

The Marine Trust Company

•

of Georgia

of New York

(Incorporated)

Estabrook & Co.

_•

Trust Company

■■

Phelps, Fenn & Co.

Lazard Freres & Co.

■

The Northern Trust Company
■«

;

„

■-

Paine, Webber, Jackson & Curtis

Lee Higginson Corporation

Guaranty Trust Company

Incorporated

Harris Trust and Savings Bank

-Equitable Securities Corporation

of Oregon

Stone & Webster Securities Corporation

Mercantile-Safe Deposit
and Trust

of New York

"Y.Y.*

Incorporated

J. P. Morgan & Co.

-The First National City Bank

Blyth & Co., Inc.

Kidder, Peabody & Co. '

;

Y,*'

Fitzpatrick, Sullivan & Co.

Baxter & Company

Folger, Nolan, Fleming-W. B. Hibbs & Co., Inc.

C. F. Childs and Company

Chas. E. Weigold & Co.

Incorporated

Industrial National Bank

Incorporated

■

of Providence

Bramhall, Falion & Co., Inc.

Auchincloss, Parker & Redpath

Andrews & Wells, Inc.

Gregory & Sons

Third National Bank

E. F. Hutton & Company

in Nashville

J. A. Hogle & Co.

Union Trust Company
of

Fahey, Clark & Co.

Maryland

Mead, Miller & Co.
'

Brown Brothers Harriman & Co.

Granbery, Marache & Co.

New York Hanseatic Corporation

R. D. White & Company

Stern Brothers & Co.

Wood. Gundy & Co., Inc.

Harkness & Hill

Robert L. Whittaker & Co.

Courts & Co.

Incorporated

Winslow, Cohu & Stetson

Wachovia Bank and Trust Company

McCormick & Co.

Byrd Brothers

George P. Fogg & Co.

Penington, Colket & Co.

Winston-Salem

Lyons & Shafto

Federation Bank and Trust Co.

March 18, 1959

Woodcock, Hess, Moyer & Co., Inc.

H. V. Sattley & Co.
Incorporated

Incorporated

Statements herein, while not

guaranteed,

are

based

upon

information which

believe to be reliable.

C. T. Williams & Company, Inc.

The Commercial

and Financial Chronicle

Thursday, March 19, 1959

(1300)

American Express

Dealer-Broker Investment

Company—Data—The Milwaukee Company,

Michigan Street, Milwaukee 2, Wis. Also
same bulletin are data on the Hertz Corporation.
American Iloist & Derrick Co.—Memorandum—Piper,
207

East

in the

COMING

Jaffray

EVENTS

Hopwood, 115 South Seventh Street, Minneapolis 2, Minn.
Investment Company of Illinois—Annual report-

Investment

Field

American

Recommendations & Literature
send interested

panv,

Department, American Investment Com8251 Maryland Avenue, St. Louis 24, Mo.
Relations

recent atomic and
plutonium re¬

Group

quirements — Atomic Development Securities Co.,
Thirtieth Street, N. W., Washington 7, D. C.
Boating—Bulletin—National Securities & Research
tion, 120 Broadway, New York 5, N. Y.
— Monthly
Investment letter

Ihc., 1033

and Revere Copper & Brass.

Corpora¬
.

;

California Western States

—

able is current Foreign Letter.

Reading—Discussion—Draper Dobie and Company, Ltd.,!
25 Adelaide Street, West, Toronto, Canada,
v
Chemical & Pharmaceutical stock indices—Smith, Barney &

Chart

Co., 20 Broad Street, New York 5, N. Y.
— 190
issues — charted in a
conversion ration chart pinpointing buying oppor¬

Convertible Bond Opportunities

2-color

request—"Convertibles" Dept. CF-3, R. H. M.
Associates, 220 Fifth Avenue, New York 1, N. Y.
;
Electronics Industry—Review—Shearson, Hammill & Co., 14
Wall Street, New York 5, N. Y. Also available is a report on
Public Service Electric & Gas Company and on the operating
performance of Railroads in 1958.
"
Japanese Stocks—Current Information
Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,
tunities—en

New York.

Nomura Securities
Also in the same
10 Japanese stocks
favorites for 1959 and data on Daiichi Bussan,
Industry

—

Survey

—

Co., Ltd., 61 Broadway, New York 6, N. Y.

discussions of the

monthly report are

Mitsubishi Shoji and

Marubeni-Iida.

Massachusetts—Financial statistics

Massachusetts communi¬

ties, including, state, counties, cities, towns and districts—
Tyler & Company, Incorporated, 11 High Street, Boston
■

Company.

.v/Vy

10; Mass.

Street, New York 5, N. Y.

Co., 36 Wall
Also available is an analysis of

Stocks—Earnings comparison of 21 lead¬

up-to-date com¬

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

performance over a 20-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.

Ohio.

suggested packages—Francis I.

Wall Street, New York 5,

bulletin is

N. Y.

du Pont &

randum

Ilarshaw

Pre Engineered Buildings in Factory

tive literature—Stran-Steel
Review of Foreign
114 Old Broad

General

I-T-E Circuit Breaker

Exchanges—Samuel Montague & Co., Ltd.,

Company

Ludlum

Steel

Corporation—1958

Airlines, Inc.—Report—Schweickart & Co., 29 Broad¬
New York 6, N. Y.

financial institutions only—
'

•?- >

Printing

-t-

data

are

Co.

Also

Life

Standard

Jefferson

A Brochure On.\7V

Security Traders Association of
York

New

23rd

annual

dinner

Waldorf-Astoria.

the

Bankers

Investment

Nebraska

•

(Omaha, Neb.)

May 19-20, 1959

Association annual field day.

May 25-26,1959 (Milwaukee, Wis.)
Association

Stock

Exchange

Firms Board of Governors meet¬

ing at the Pfister Hotel.
June

(Minneapolis-St.

18, 1959

Paul, Minn.)
Cities

Twin

Bond

Club

38th

and outing at
White Bear Yacht Club, White
Bear Lake, Minn, (preceded by
a cocktail party June 17 at the
Nicollet Hotel, Minneapolis).
annual

picnic

(Hyannis, Mass.)

Consumers Bankers Association
Atlantic

States

Sectional meet¬

ing, Wiarmo Club.
Aug.

9-21, 1959

(Charlottesville,

Ya.)
School

Consumer

Banking,

University of Virginia.

Street, New York 4, N. Y.

Fairmont Foods,

Sobering Cor¬

Insurance

Incorporated,
available

Company

Analysis

—

Standard Security

—

Life Insurance

Broad Street, New York 5,
analysis of Hooker Chemical

Corporation.

Celotex Corporation and

Company of New York

Convertible Preferred Stocks.
Laughlin—Survey—Abraham & Co., 120 Broadway,

list of interesting

York

New

Kennedy

Common Stock

Also in the same circular are surveys

5, N. Y.

of National Biscuit and

I).

Western Pacific Railroad.

Co.—Memorandum—Goodbody &

Co.,

115

BOUGHT- SOLD-QUOTED

Broadway, New York 6, N. Y. Also available is a memoran¬

Portland

American

May 1, 1959 (New York City)

American Electronics, Inspiration Copper, Detroit
Harvester and General American Transportation.

Jones

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

Second

& Co., 25 Broad

Hay den, Stone
available

annual

report—
Allegheny Ludlum Steel Corporation, Oliver Building, Pitts¬
burgh 22, Pa.

For

Also available is a bulletin on
Telegraph Corporation—Circular-

Telephone &

Also

poration,

Blyth &

Co., Inc., 14 Wall Street, New York 5, N. Y.

are

5, N. Y.

New York

way,

spring party

Country Club.'

June 25-27, 1959

Company—Data—Hardy & Co., 30 Broad

Packing Corp.—Memorandum—Simmons & Co., 56
Beaver Street, New York 4, N. Y.
International Harvester—Report—Reynolds & Co., 120 Broad¬
International

(St.

Dealers

Corporation—Analysis—Parrish &

Johns Manville Co., Gillette Co. and

Study

memorandum

Imperial

-Troster, Singer &

—

Street, New York 4, N. Y. Also in the same bulletin
on IL S. Rubber and Ilart, Schaffner & Marx.

Blair

Co., 74 Trinity Place, New York 6, N. Y.
Albemarle Paper Manufacturing

available is

brief data

Corporation, Detroit 29, Mich.

Street, London, E. C. 2, England.

Dempsey-Tegeler & Co.,

2, Texas.

Co., 40 Wall Street, New York 5, N. Y.

way,

—

Chemical—Memorandum—H. Hentz & Co., 72 Wall

Ileyden-Newport Chemical

Applied Colors—Descrip¬

Air Express International Corp.—Brochure-

Allentewn

Memorandum

—

Street, New York 5, N. Y. Also
on Laboratory for Electronics.

Bancshares Corporation.

Allegheny

Thorn Electrical Industries, Ltd.

Gulf Sulphur Co.

Also in the same

discussion of Consolidated Foods and

Municipal

annual

Group

1959

Mo.)

Louis

the Sunset

-•

Co.—Memorandum—Green, Ellis & Anderson, 61
Broadway, New York 6, N. Y.
Firstamerica Corp.—Memorandum—R. W. Pressprich & Co.,
48 Wall Street, New York 5, N. Y.
Firstamerica Corporation—Study—The First Boston Corpora¬
tion, 15 Broad Street, New York 5, N. Y.
First National City Bank of New York—Memorandum—Kid¬
der, Peabody & Co., 17 Wall Street, New York 5, N. Y.
Glaxo Laboratories Ltd, — Memorandum — Hirsch & Co., 25
Broad Street, New York 4, N. Y.
Also available is a memo¬

market

Portfolios—Three

Louis,

Light Company, 25 North Main

Houston Club Building, Houston

Over-the-Counter Index—Folder showing an

Co.,

Company—1958 annual report—Dayton
Street, Dayton 1,

29-30-May

Power and

Traders Associa¬

Hotel.

Edward

April
St.

facturing Company.

tion annual dinner at the King

New York

Dayton Power & Light

(Toronto, Canada)

10, 1959

Toronto Bond

;

Bessemer—Review—Ira Haupt & Co., Ill Broadway,
6, N. Y. Also available is a review of Gray Manu¬

Cooper

ing New York City Bank stocks—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.

and

at the Waldorf-Astoria.

Apr.

Co. and Lau Blower Co.

Sperry Rand.
New York City Bank

(New Y«rk City)
Security Dealers As¬
annual
dinner

33rd

sociation

York—Analysis—Elder &
Company, James Building, Chattanooga, Tenn.
Continental Assurance Company—Analysis—William Blair &
Company, 135 South La Salle Street, Chicago 3, 111.
Cook Electric Co.—Memorandum—A. C. Allyn & Company,
Incorporated, 122 South La Salle Street, Chicago 3, 111. Also
available are memoranda on Iowa Electric Light & Power

Mining Industry—Analysis of outlook—Bache &

yield

New York

Bottling Company of New

Coca Cola

meeting at the Hilton

April 3, 1959

Francisco 4, Calif.

Coast Life Insurance

Eagle Picher

Japanese Warehouse

considered

Life Insurance Company—Analysis-

available is an analysis of West

Also

ica annual

Hotel.

Gorey Co., Russ Building, San

Walter C.

Burnham and
Company, 15 Broad S|pfeet, New York 5, N. Y. Also avail¬

Burnham View

April 1-3, 1959 (San Antonio,Tex.)
Texas Group of investment
Bankers Association of Amer¬

Stratton—Data—du Pont, Homsey & Company, 31
Milk Street, New York 5, N. Y.
Also in the same circular
are data on Corning Natural Gas, Niagara-Mohawk
Power

Briggs

developments including government

nuclear

Insti¬

of Investment Banking.

tute

Ltd., A. D. R.—Review—Alfred L. Vanden
Broeck & Co., 55 Liberty Street, New York 5, N. Y.

session

annual

Seventh

Avenue, New York 16, N. Y.

Secretary, 261 Madison
Beechamp

Atomic Letter No. 46—Current comments on

Pa.)

American Machine &

parties the following literature:

(Philadelphia,

1959

22-27,

Mar.

Foundry Company—1958 annual reportFoundry Company, Mr. C. J. Johnson,

American Machine &

pleated

It is understood that the firms mentioned will be
to

Public

Aviation.
Company—1958 annual report—Investor
Long Island Lighting Company, 250 Old
Country Road, Mineola, N. Y.
Longhorn Portland Cement Co. — Memorandum — Creston H.
Funk, Hobbs & Co., Frost National Bank Building, San
Antonio 5, Texas.
Lykes Bros. Steamship Co.—Bulletin—Thomson & McKinnon,
,11 Wall Street, New York 5, N. Y.
...
: .
»
r.
Murphy Corporation—Analysis—Semple, Jacobs & Co., Inc.,
711 St. Charles Street, St. Louis 1, Mo.
National Distillers & Chemical Corp.—Report—Harris, Upham
dum qn Robinson

JAMES ANTHONY SECURITIES CORP.

Long Island Lighting
Relations Division,

New Yortc 5, H. Y.

37 Wall Street

BOwilng Green 9-4290

Co., 120 Broadway, New York 5, N. Y. Also available is
current issue of '.'Pocket Guide" and. "Market Review" /
with some suggested selections. ;
"
r
"
*;
Northwest Airlines, Inc.—Memorandum—Walston & Co., Inc.,
&

Air
The

the

Express International Corp.

largest forwarder, clearance broker and

solidator of international
cargo
of 278 offices and agents

with

74 Wall Street,

con-

network

New York 5, N. Y.
Penn Fruit Company—Analysis—Jesup & Lamont, 26 Broad¬

New York 4, N. Y.
— Memorandum —Kidder, Peabody
& Co., 17
Wall Street, New York 5, N. Y.
Piper Aircraft Corporation—Review—John H. Lewis & Co., 63
Wall Street, New York 5, N. Y.
Shawinigan Water and Power Company—1958 annual report
(either in English or French) — Shawinigan Water and
way,

Philips Lamps

throughout the world.

Power

Southern

Troster, Singer & Co.
Members New York

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2460

Teletype NY 1-376; 377; 373

CONVERTIBLE

Company, P. O. Box 6072, Montreal Que., Canada.
California

Southern

Edison

California

Company—1958

annual

report—

Edison

Company, T. J. Gamble, Secre¬
tary, P. O. Box 351, Los Angeles 53, Calif.
— 1958 annual report — The Texas Company,
Secretary, 135 East 42nd Street, New York 17, N. Y.

Texas Company

Texas

Eastern

Transmission

Corp.—Analysis—Hill Richards
Spring Street, Los Angeles 14, Calif.
Two Guys From Harrison—Bulletin—Gruntal & Co., 25 BroadStreet, New York 4, N. Y.
& Co., 621 South

BONDS
months. At

its

75%-In

recentj

lower levels the

con-f

•vertible bond presented*~far less risk
on
the downside then its common

stock, yet showed almost as much
I percentage gain on the^dpside. That
measures the potential of ISO active¬
ly-traded convertible bonds in cur¬
rent

markets. The R.H.M. "BOND RE-.

VIEW-

the

ment service

only complete investcovering the entire lield
Unique 2-color

convertible bonds.

conversion ratio charts on 190 con¬
vertible bonds pinpoint opportunities

they move into range. .Send today
lor our FREE report
explaining our
coverage ol convertible bonds; our
2-color conversion ratio charts, and
as

J the opportunities in convertible bonds
in

today's market. There is no obli¬
gation. Send to "Convertibles," Dept.
R.H.M. Associates. 223 Filth Ave.,
i New York 1. FLY.
C4,

Volume

189

Number 15830

The Commercial and Financial Chronicle

(1301)

of crude oil supply in this
country.- Also, the small operator
is finding it more and more dif¬
sources

World's Oil Activities Shape
A New Complexion of Operations
By LESLIE EUGENE FOURTON*
Director. Industrial Research Department

Hayden. Stone & Co., New York City

A positive
is

industry. The oil analyst ;
anticipates higher gasoline prices, more orderly marketing and, ?
in the long run, higher prices for crude oil, natural gas and
refined products. Borrowing the thought that familiarity can
breed contempt, he believes the over-familiarity of petroleum
problems has created mental confusion and bred widespread :
skepticism. Mr. Fourton offers the investor 20 trends to watch

guideposts for future petroleum prospects.

take

year
character of the

broad

petroleum

industry has changed radically in
feach 10 year period since 1930.
I n.t he next
/

decade, ; the
:1960V;, t h e
forces

•

yyia*

trolling .the
oil

I world's

activities

will

result

entirely

fj:

impossible

there- may be a
continuation of. the; recent downward

most

1959,

oil
Leslie

incubation,

1930's that oil

nearly
the

rush

fabulous

capital

This

business.

the factors most likely to
future

margins. These
likely to work out

are

set

wildfever-

import controls
refined

and

1961.

tional agreements.

(10)

Mass

Intimacy Breeds Confusion
affairs

the

petroleum:
.

;

into the oil
stage for

the

rapid

grated

the

of
the

company

era

growth

consolidation

inte-

40's,

50's

the

set

in, characterized by continued
rapid expansion of manufacturing,
transportation and marketing faCilities, excess productive capacity
and a fierce competitive struggle
markets

for

both

and of late in

foreign

the

areas.

and

new man¬

on crude
unfinished

for

dustry
than

appears
at anytime

eral

years.

regarding

skepticism
and

the

oils

and the multitude

investments
old

favorable

in the past sevDespite wide-spread
of

problems of the industry, it would seem that the
current stage of maturity of the
•industry may coincide with the
.'rewards built toward in past years
of

new

heavy investment in facilities.
1958, particularly,

While the year

was

one

after

major

consolidation,

long period of unparalleled
growth, there are numerous signs
pointing to a greater prosperity,
even though many
difficulties still
may
lie ahead.
The balance of
forces shaping current events appears to be positive.

oil, there is a good possibility that
gasoline prices will rise substan-

review

brief

conditions

at present.

future will

bear out

the

predic¬

tion

that

will

always be noted for (1)

the petroleum

continuously

changing

industry-

its capacity not only to maintain

its vitality
main

but its ability to

dynamic.

The

business

has

become

business,

and

whether

becomes

controlled

may be useful
on
what is in

remains

increase

element

are

profits.

greater

business

will

business—and
one

in the years ahead.

'• fj
Offers Guide Posts!

with

1959
of

terms

days

that

extended

and destructive cornpetitive practices of the past two
years
may
moderate, now that

troleum

to ,watchf which; will!

raw

Also, on the political front is
perennial question of depletion.
As
in
the
past, the new

the

attacks

ill-founded
If

Ceed.

duced,

oil

allowance

(1)

Trend

toward

each

consuming nation becoming
self-sufficient

crude

duction

whether from

sources

from

with

Back.in
1901,

pro¬

indigenous

interests

out

for¬

crude

producing

areas

legion

create

hired

re¬

in dictating the price of crude

for

Trend toward

resump¬

rising world-wide

Victor

Cevasco

petroleum

after

the

of automation in

use

operations.

(20) Trend toward greater in¬

was

the entire office

staff.

;

This announcement is not

offer oj securities for sate

or a

business of

$25,000 annually to

general agency
excess

now

$16,000,000 of business

offer to buy securities.
March 19, 1959

New Tssue

150,000 Shares

suc-

depletion

will

should

rise,

(Par Value $100 Per Share)

the

nil.

productive

Corporation

Preferred Stock, 5.60% Series

re-

and

While

capacity is
at present,

obviously excessive,
although less so,, economically,
than publicized, the trend of drilling in the past two years, down

Price

$100

per

plus accrued dividends from March 1, 1959

fr0m 58,000 wells in 1956 to 54,000
1958, creates

in 1957 and 49,000 in

for

cause

ability

concern

over

sufficient

the avail-

domestic

Copies of the prospectus nun/

be obtained front such oj the undersigned (who are among

the underwriters named in the

And cause

these securities under

even

prospectus) as mag legally offer
applicable securities laws.

subsequent

their

large development programs. Also
quite serious has been the trend
toward drilling shallower wells, a
sign of the uneconomic background of operations,

Demand,

Sees Long Term Crude

in 1959 is likely to record its 17th

Price

consecutive year of increases, de¬
had

recessions.

three

which

sunk

the

Prices,
point of

diminishing returns, in the spring
of

1958

The

have

rebounded

composite

value

sharply,
refined

products derived from a barrel of
presently greater than
the average value 'for any year

crude oil is

„

*An address by Mr. Fourton before

New

York

-New

York

the

Society of Security Analysts,
City, March 13, 1959.

Dillon, Read & Co. Inc.
The First Boston

Kuhn, Loeb & Co.

Corporation

Oil

Rise

Despite the recent price weakthe long term pressure is

Eastman Dillon, Union Securities & Co.

Blyth & Co., Inc.

Glore, Forgan & Co.

nesses

for higher prices for crude oil,
natural gas and refined products.
Established good reserves of crude
oil are likely to become substantially more valuable, since there
does not appear to be a good basis
for expecting a reversal of the
ohrirn

nnward

trpnd

thp

cost

"PWarfl trend OI ine COSI.

finding

and

developing

new

Goldman, Sachs & Co. Harriman Ripley & Co. Kidder, Peabody& Co. LazardFreres&Co.
Incorporated

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Smith

Smith, Barney & Co.

Incorporated

Stone & Webster Securities Corporation

White, Weld & Co.

handling in

annually.

solicitation oj

Texas Eastern Transmission

He has witnessed the growth of
the agency from one doing a gross

current

(19) Trend toward greater

boy,

newspaper

prices

period of interruption has passed.

checker, messenger, stenographer
and general office assistant.
At
that time he

(18)

combination

for market¬

ing crude oil production and

tion

was

office

as¬

sociates and

fined products.

well

friends,

greater ef¬
governments
of

their concessionaries

known

Trend toward

affec-

tionately

foreign

"Vic,"
is

producing countries
to
an atmosphere favorable to

forts

the world.

standpoint of profitability

15,
he

having

stock dividends.

(17)

eign producing areas.
(2) Trend toward greater em¬
phasis on independent pricing in
various

operators

the

tender age of

large reserves.
(16) Trend toward a larger per¬
centage dividend to earnings pay¬

oil

foreign

anniver¬

with the

agency.

the

presently desig¬
petrochemical industry.

nated

major

are

unlikely to

27172%

prices

effect

crude

this
and

preliminary

the
the

58th

materials than pe¬

significantly i n fi u .e n c e future: .* (15) Trend toward seeking
profits in the petroleum industry crude oil supply arrangements by
crude deficient U. S. companies
appear to be as follows:,.

curtailed foreign supply will cease
to encourage the disruption of
orderly and intelligent marketing,
particularly
on
the
important
East Coast.

nct

wars

low

inventories,
supply,

lowest level in 10 years.

spite

sary

(14) Trend toward seeking other

favorable

the

store

-profitable

V. J. Cevasco With

\ (12) Trend toward independent

sources
-.

greater concern is the
rate of exploratory activity,

during
industry began

The

1960's.
year

run

required

Moreover, there

signs

many

the

insure

price

for

in shedding light

it *

world governments, the

world
not

■

Trend toward greater pe¬
imports into the U. S.

oil

current

the

re¬

petroleum

•

Such
prices,
now,are
oil.
nearly one cent below satisfactory
(4) Trend toward a leveling out
levels, although not entirely undecline
of
oil
well
usual prior to the main driving or
drilling
season.
Only the gasoline price activities except for possibly a

outlook

the

affecting

Outlook

its

complex¬

ion, (2) its rate of growth and (3)

starting a year or so hence."
(11) Trend toward governments
of foreign countries receiving a
greater share of oil profits either
directly, indirectly or independ¬
ently. -

tiallv.

crude in future years.

Conditions Affecting

i960's.

domestic

international. With curtailment of

level

Now, on the threshold of the
1960's, a whole new concept of
operations appears to be taking
shape. Lest this may sound ominous, it may be well to say that
the outlook for the petroleum in-

than

AF-GL 58 Years

(3) Trend toward dominance of
early
development
of
the the recent huge one million barrel
the refiner-marketer rather than
major
integrated
company
we daily inflow of refined and unknow today. After the adolescence finished products, as well as crude the crude producer both from the

and

investments

conclusion, I believe, that the

extent by

the

troleum

Trends

crude
oil producers and domestic integrated companies. Curtailed foreign supply will result, probably,
in a substantial improvement of
profit margins, more than sufficient to offset the impact of reduced quotas for individual companies, whether domestic or
implications

com-

years

catter of the 30's created

ish

(9)

in turn has apparently bred wide¬

products has decidedly favorable-

E. Fourton

was

After

omy are

The announcement of

panies, in number, became enterprises of note in the U. S. business
scene.

petroleum securities

spread skepticism. For those in-', foreign crude oil producers seek- ;
terested in attempting, to arrive ing an orderly place in world
depressed, below the more favorat their own point of
view, it. may ¬ markets by other means than by
able levels existing for the more
be helpful to review;^ some 0fr the substantial
Victor J. Cevasco, Senior Vice-:
price discounting.
normal years of 1954,
1955 and
more
important factors that may1
(13) Trend toward greater utili¬ President and a Director of Albert!
1956.
But this year, government;
account for an entirely new com¬ zation of pipe lines as a means to Frank-Guenther Law, Inc., New
regulation and the continuing im¬
of
operations
in
the supply Europe from Africa and York City, on March ; 12 cele-,
provement of the general econ- plexion
brated his*
petroleum
industry ? during \Tthe* the Middle East.

datory

until the

Trend .toward crude oil
production prorationing in foreign
then - countries, ultimately by. interna¬

trend; if not this year,
likely starting jn 1960

The

crude oil. !

over

favorably.

brates its first

not

that

(8) Trend toward a lesser com¬
petitive advantage of natural gas

past
.

grade

* Profit margins, as yet, remain*

factors

cele¬

centennial

;

influence

new

high

complexion of
operations.
; While the
petroleum in¬

dustry

49,000

terest

year

con¬

probably

pendent oil operator..-

will;

year

history

'closure.

this

appreciably, ' the

of the industry, industry have been so well pub¬
licized in. recent years that mass
except in 1957, when unusual conditions prevailed due to world intimacy appears to have created
its own mental confusion which
shortages following the Suez

the/in the

so,

wells. drilled

number

drilled in 1953 and it is not
wholly

■"Sr;

Give

likelihood that the

exceed,

! 1

// :

this

the oil

for

bulge later
part of next: V

(5) Trend toward a leveling out
ficult
to
find
oil
at
profitable or decline of capital expenditures
prices and he: appears; to be dis¬ relative to income.\
:
appearing from the drilling scene.
(6) Trend toward a lowering
As
a
result,, the forecasts of a operating ratio i. e., increasing
sharp upsurge in drilling in 1959 operating profits....
and beyond do. not appear to be
(7) * Trend toward a lessening
a
certainty. There seems to be position in the U. S. of the inde¬
little

balancing of forces, pointing to greater prosperity,-

said to be in store

temporary
and

Dean Witter & Co.

The Commercial and Financial Chronicle

a healthy sign,
few years ago
military business predomi¬

That's

foundation.

By VICTOR

Thursday, March 19, 1959

when

pared to

few

foreign competition both here and
abroad.
It's a big world, to be

prospects may well blow starts a new lease of life with the
as we get into the new year.
new year.
On the one hand we
It may be much the same with
have ample reasons to be mighty TV
When several years ago, we
The

hot and cold

■
.

are-

plus

many

factors
the
our

performance,
into more

But now we are coming

spectacu¬

s o u n

try

are

scopic pictures. Certainly the pres¬
ent radio sets and TV sets face
obsolescence in
the not distant

other

hand,

there
mi¬

some

brand

ance

Victor Mucher

cannot as
: ■7 ■■
7;
yet be properly evaluated. How¬
ever, my personal opinion is that
the plus signs far outweigh the
minus, and that our industry's rich
experience background, stronger
financial position, latest products,
aggressive marketing, and above
all the public's insatiable appetite
for the finest in home entertainment, not forgetting the defense
program which continues in high
us,

gear, pave

there is
accept¬
all the while, particularly
the servicing angle largely

future.

And, of

the way for a tremen¬

dous boom.

Lists Amazing

Developments

there

Then
Here

tie
again, the

aede¬

even

Portables

partial fu ndingTfqr shorter periods

j.een

third sets.

Most

had

become

common¬

;

t ry

'■

o r

Monaural records
and equipment are gathering dust
as
stereophonic
records
and
equipment take over. The averbe

antique.

from

hundred

resent

selling in the thousand-dollar
Certainly all this activ¬
means
a
tremendous radio
trade in 1959.
L

meeting
the

elements ' to

big companies which

from the threats, of foreign com-.
petition.7 '> V - V
7
.

County Congress, held
inrrtnn-n
liigiuu,

man-.

electi'omcs and the size oitotal equipment -is secured through
tne,.
rtrtrfinn
portion of their total subcontracting, of course, and* it
of their
business can only be estimated^- js jn this area that a major por- *

<''Y.in

electronics

I
7 Nevertheless, the

S. D. Fuller & Co.

general pattern ti0n of systems responsibility lies,
industry is
^he Army's Hawk missile sys-

character of the

and

looks

been

„

'a.

though stereophonic pro¬

will take over in a big way.
Meanwhile, FM comes in for a

grams

fresh
FM

Iru„
The

with

boost

multiplex
^

set

radio

the

stereo

advent

broadcasts,

aT
good

that seemed

Civilian

Business Predominates

Although there

still

large

flnoitc ||AUf

-n.r

■

Stephen >D' war,

senior pmtner

* ?

>.»««««

solete.

to come, is suddenly ob-

And

the radio industry

and with the tremendous ac-

military

The'new

business

■

office ? which will con-*
ii'1
r.
-

cities against aerial attack. The
field units include mobile launch-

caterpillar-treaded' loaders,

celeration of.activity in the field ers,

j - -

w ay

towards

civilian

A i

».

•*

gettivg along

business

our

PL missilery and space
1J1

main

Guaranty Savings Life Insurance

matter

fi-n

Company of Montgomery, Ala.

emplacements,

have

estimates

appear

from

all

current

the

house

been

given as to the future growth of
our industryHowever, it would

of record only.

towers,, and ; buildings to
control center, missile

radar

Industry's Growth

indica¬

service facilities, and

living quar¬
You can see
from this how very much more
complicated this system is than

ters

for

personnel.

industry vol-, just the missiles themselves,
approximately $2 billion
10 years ago, $5 million five years
ago, and is $7.9 billion today, it.
should rise to around $14 billion

ISSUE

whereas

that

tions
ume

was

W. N.

54,000 Shares

Consumer

Acceptance Corporation

These growth projections
are
predicated not only on ex¬
panded military requirements, but
on the accelerating growth of the
industrial electronics market.

military
have been turning to the
and

More
services

the

system concept in meeting
procurement needs for the
increasingly large and complex

par

(Special to The Financial Chronicle)
,

value)
<

armaments of the space age

which

rising

elec¬

require

steadily

tronic content.

FRANCISCO,

SAN

come

Calif.—

H7 Stephenson

Waite

be¬

has

associated with R. H.

Moul-

Montgomery

St.

ton

Mr.

Stephenson, who has been in

weapon

their

Stephenson k

WHk 8. H. Moitton

by 1963.

$.30 Cumulative Convertible Preferred Stock
($1.00

rt«

ir\

business

All of these shares having been sold, this notice appears
as

with

Various

NEW

of fast
moving combat forces, and for
fixed locations QAriul uftanlr U. S.
in defense of The
r»i+ip>c ucfaincf'
pon traveling in support

technology, trucks, storage pallets, acquisition
-P/M*
AArl
nlri
r*'/I
/-31 nnftt
wrapped up in our radio-elec- duct a general securities business, it would appear that for a 8°od and tracking radar units, -diesel
tronic industry total I do belie\-e will be under the resident: man- :few years to come the major por- generators, and control, centers.
IL ;
industry toiai, i ao oeneve
t
,
L
R
nsserv tion of the electronics market will The fixed installations utilize the
that we have come a mighty long
foun(jer an(j former President'of4 be in the government end of the same basic equipment but are laid
LUUI1UC1 ctHvt Ivllllvi A I Cm1Uv11v4: \/X)
out with concrete

percentage

—,

for years

tern is designed both for use as a
highly mobile anti-aircraft wea-

...

announced

Fuller

of missiles

to
store, mount,-, transport, test,
maintain;, and-guide the missiles

OnJLquite clear.
*77:7:7
upclis new Drancn ^77 Military electronics and, other
s. D. Fuller & Co., underwriters*products for.government end use
and securities dealers has opened comprise better than half of the
a branch office at 242 Montgomery, totals industry volume.
Withfnlfl
no
iKofomont in
Street
Monteomerv
Ala
'it has signs of abatement in the cold

people think

]yjaily

...

only partly to their targets. Much of this

?ar«f P^ucerejurc

in Wash-;

not availof the

aL number

because

able

by dwindling sales.
•/ But
along comes the stereo¬ placement tubes and components.
Stereophonic broad- The radio-TV service trade is up
phonic fad
casts are starting Using the pres- in the hundreds of millions.
arting.
ent AM broadcast band, it now

re¬

and

electronics industry are

John M. Whitbeck

ity

tremendous volume in

commend -military

facilities, to assume .< onjy jn terms of the "birds" themcomplete, weapon .systems .man-.,.• selves;-• Overlooking the' complex >
agement.77
.77
array, of supporting electronic and
>*'!Fully./ accurate., statistics on the •.mechanical>> equipment - necessary #

the

and

technical -skills,
power

bracket.

means a

business.-It is relatively free from

production of com1-%:-•?v;77 ;-777: ;77V}v 77'
and have the breadth of'
Describes Hawk Missiles
; >

ponents

are

•

laoo

carry on mass

Urban
c

annual sales

increasingly large portion of total
defense spending. There are other

sub-assemblies,

components,.and

to the really

day
of
annual

the

the
tech¬

space

"jjm firms which produce specialized through'the recent recession) and 7

on the
marketing of
county bonds,
marking
the
third

4000

some

and

nology; electronics will secure an

some

activity

$7.9 billion,
fluctuations of business activcompanies, of course, rep-,r Ry (witness the steady growth in ;
everything
from
small, saies an(j earnings we experienced

These

of home equipment session

soared

Adams

approximately

of
^;

growth >when - op¬

missiles

field
F.

cpmpames with total
of manufactured products m

p a n e

acceleration

^'If^eture'

participated
n

the

^a""la"";®Lnri_es

securities,
[

on
the, basis of well-de¬
principles and policies. With
no signs of abatement in the cold
war,
and with the tremendous

fined

*\*!>- Today it ^ comprises

dealers and
distributors of
state, municipai and Corp

profitable

erated

the fifth

Charles

Co., Incorporated,^

for"

rvalue

underwriters,

e w

jndus_

ha s be-

returnTon

standpoint; t« despite '"a V
relatively ' low prdfit return on
sales, offers excellent possibilities
investment

7 country based

Whitbeck, Vice-Presi-

John

dent of Blair &

from

and

business

largest indus-

Panel Discussion

and tape recorders and the rec-,
ords a brand new impetus. What
was considerd the last word in
phonographs and recorders only a
year or two ago, now turns out to

place. And since radios last for
And all the while we have mil¬
years and obsolescence was at a
lions of radio
and TV sets
in
minimum, we were ready to ac¬
cept shrinking production dictated daily use. To keep them perking

Military *} electronics' isf; good;

in; Military^ Electronics

..Profits

-V'

tronics

J. M. Whitbeck in
n

time.:'T^:-:^>^i'."|-

PVtiwnf>1v

big-

certain

equipped with radios.

were

gest year yet.

;*>

^dS^at l^t^L^Wi?
&

iSr^

•

Hvn«miY

competition

All in all, 1959 can be the

velopment is giving phonographs^

housing AM-FM radio, TV, phoamount of saturation in radio set nograph and even tape recorder
sales.
Most homes already had in a handsome piece of furniture,
cars

nient.

within safe limits.

music.

recorded

stereopnomc
stereophonic

dollars to hundreds and even
thousands of dollars. So-called
"home entertainment centers,"

Until recently we

reconciled

second and

foreign

keeping

solved.

has

have amazing developments in radio, TV and
recorded music.

with

age price

On the plus side we

Beemed

...

about $14 billion by
for profitable growth

be obtained in military electronics.

can

realign-

the radio-electronic hori-

course,

color TV which is gaining

being
npw

able'

Let's hope that the dark

cioud

continues. Mr. Adams estimates that the

fhrnni" " ,w^

come

factors

nus

which,

that

ics

gerious.
on

war

stereophonic sound with our TV.
It's even safe to predict stereo¬

yet

has

the

&American

scored. But

the cold

American labor will play a big part

indus¬

tronic

long

present $7.9 billion industry will grow to
1963. He explains excellent possibilities

lar radio-elec¬

opines military electronics will comprise the bulk of output so

accompaniment. ZOn will remain a small cloud, and
—
s i t.u a t i o n,1
Sets are appearing with two oi'jthat our industry takes it in its
competition:
more loudspeakers. It's a foregone
stride.
The full cooperation >oi':
.
...
in electronics
conclusion
that
we
shall have
realistic

Raytheon head describes country's fifth largest industry and

joring in other countries.^ But
early in 1958 we saw the Japanese ~
coming into the American market in force.
Their components and
assemblies
are
appearing more
and more. And the stuff is good,.
we
must admit—certainly at the >

achieved the 17-inch and 21-;nch Durlng the coming year we shall
rectangular tubes, it seemed as have
though the average household had more closely. It might become
all it wanted in TV

that

add up to
best year

can

there

President, Raytheon Manufacturing Co., Waltham, Mass.

and we might well agree to t
our
foreign competitors ma¬

see

when military business predominated.

optimistic, for

By CHARLES F. ADAMS*

sure,

civilian business as main foundation as com¬

years ago

From Military

mainly by way of

to at first, are

An encouraging

done in putting

The Profit Possibilities

negative factors I referred

The

Dover, New Hampshire

radio-electronic outlook for 1959 is depicted
by Mr. Mucher after positing the phis and minus factors con¬
fronting the industry. The manufacturer refers to the amazing
renaissance in radio and records and believes much has been

nated.

MUCHER

President; Clarostat Mfg. Co., Inc.,

with

compared

Outlook

The Radio-Electronic

(1302)

Co.,

405

the investment business for many
years,

was

formerly with Brush,

Slocumb & Co.

Incidentally, while on the sub¬

Price $5.00 Per Share

military
would

ject
of
practices,
out

that

has

been

manner

being

Mclaughlin, kaufman & co.

decided

months there
shift in the

which

contracts

recent

funded

services.
programs

procurement
to point

the

are

military

*From

Frank,

customarily fully

Eighth

were

talk by Mr. Adams

Boston Society of

ton, Mass.

LOS

Whereas in earlier years

funded when initially placed unMarch 19, 1959

Stern, Frank, Meyer
& Fox Will Admit

before the

Security Analysts, Bos¬
„

—

Stern,

325

West

ANGELES, Calif.
Meyer, &

Street,

Fox,

members

New York and Pacific Coast

Exchanges,
Eshman to

will

admit

the

Stock

Aaron jR.

partnership on April 1.

Volume

189

Number

5830

The Commercial and Financial Chronicle

least

point

Everyone?

"growth stocks."

not attractive where tax

are

not

are

area.

double.

Y;V:

...

sell

principal
come.

the
15

upon

mean

$60.

Yet, those who
hypothetical growth

our

moderate capital

the

' Mr.

the

have

principal,

important. "Invasion"
principal will reduce future

income, which,

in * turn*,

will

inade-

Of course, many past purchases
growth stocks have turned out

very,

profitably,

and

numerous

re¬

that

interest

endowment

income.

channel itself mainly into seeking

Consequently, it starts a
resembling "compound in¬

process

terest in
It

Loss

recognize

not

that

What is

"deduction

with

live within his

be reluctant to do.

stocks which

folks

some

may.-be
i

s e

•

at least

uno

yields

others.

pre¬

for

tax considera¬

"Revenue

mizing risk is
>*a prime ob¬
dis-

t i

h n 11 1 ri
should

minimizing
something

Goldstein

stocks

growth

Income,

-j

"Growth

Stock"

"growth

stock"

not

are

attractive investment

fined—at

least

Defined

may

the

for

de¬

purposes

appreciably higher price in

relation to its dividends

(or earn¬

ings) than other stocks of simi¬
lar quality/and which does so be¬
cause it is widely believed that its
dividends^(or earnings) will in¬
to

crease

/in

result

higher price for the
low yield in compari¬

istock. ;■ A

securities

other

with

son

that, will

level

even

would

stripiTipnt

agency

in-

buyers.
The competition ■ of
seeking to buy it raises its

those

■

as-high as

repay-

the earnings of

with

iiidiviHusls

i^reca^ i? wrolV>

Quahhcations are
otten well advisecito engage in

«^ie la^er should not buy

the

;

low-

such

insurance

"as

companies and savings banks, who
pay only moderate taxes on interest and dividend income
the

universities

and

well

ie§9rdless of how highly

a stock—

Gains

blind

and

principal,

profit

from

balance

the

herent in

or may we^ n°t> turn out to be
correct.. ;

It's

foundations,

true
that
dividends
are
who usually pay no taxes on such sometimes cut, or even omitted,
earnings, normally place only ; a /But there is usually vastly more
small portion of their resources < evidence upon which to expect the
into tax exempt securities.-;:; They continuation of a dividend
policy
>

point is involved in the case'*, than there is upon which to foreare purchased be-i*cast a rise in the
price of a stock,
cause of the low tax rate on capi¬
tal gains.
IH
.,//■
The difference is only vr; \;
>/
the degree of tax shelter which
Principal versus Income
of stocks which

bought.

\'/•;

Delusions

A..

law

and

sound

financial

management often require that

Pitfalls

and

Both

the

for

reason

will

may

in¬

stocks
of

case,

/. ;

mean

highly

higher

among

competitive

the

the multitudes who

pete in it
and

are many

cases,

old,

estate

concept that

/"'./■ It

something

fact,

tion.

Other

appraiser, he is also
Realty Corpora¬

Business

as
Machines

and

Dow

Chemical, are merely "aver-

age"

hand, securities, which
...

good

are
.

mtlation:,

growth

^hedges; are -often : not
are
:vstocks.
x-''

/'•«

•

The Favorable Tax Factor
A

one

reason
for
buying
stocks—and an excellent
appropriate cases—is the

major

growth

favorable tax treatment

long-term

accorded

capital gains.

Fed¬

high
ordinary income,
never more than 25% on

eral income tax rates run as

91%

but

are

gains.
There¬
fore, for persons in higher tax
brackets, each dollar of dividend
capital

long-term

»?income

worth,

after

Federal

taxes, anywhere from 50c down to
as little as
9c (depending on his
income
level; exemptions, etc.).
But,

dollar

each

long-term

capital^., gain i^j^ways^ worth at

; least 75c after Federal taxes.
-

Hidden

for
Shelter

Charge

the

(

ment

Funds," "The Story of an Inde¬
Mortgage Lending Program,"
Buildings Never Die
.", and

pendent

may

Ancient

appears as

a* matter

Real

Estate

known

Tax

facts

are

those

who

well-

have

large sums to invest, the probabil¬
ity is overwhelming that one pays
relatively more, in the market
'prices of stocks, for caoital gains
than for dividend income.
It is
difficult to make
a
statistical

^comparison

because potential
capital gains do not usually lend
■i themselves to measurement, and
J also because dividends are .nor'

mally

All of these securities having been sold, this advertisement
;

NEW ISSUE

'-t- V

■■

■

of record only*
/

•*•

;

•

reputation

make the stock of
p0ratjon into

periodic type of income

;

same

1,055,000 Shares

growth

for

■

can

low-risk cor-'
high-risk security.

The

high ratio of price to divi¬
dends (or earnings) characteristic
of growth stocks can only last as
long as the market regards the
company as , being in that class.
Thus, although a company may
never
fail
to
earn
plenty
of

U. S. Land Development Corporation
(Not affiliated with the United States Government

any agency

thereof)

common stock

money
every
year,
that is not
enough to support the price of a

($1.00 Par Value)

growth stock. To continue to be
regarded

sell

a growth stock—and
high prices prevailing
security—not only
past dreams of stock¬

the

for this class of

the

must

holders

realized, but simul¬
there must always be

taneously
new

dreams

Price

$1.00 Per Share"

horizon.

the

Over-Discounting
This

can

illustrated

with

s^ory about an imaginary growth
stock.
It earns $2 per share and
sells at a price of 35 times that
or

$70.

The market justi¬
earnings ratio
that earnings will

Copies of the Prospectus may be obtained from any of the undersigned or other
or brokers
only in States in which such underwriters, dealers or brokers are
qualified to act as dealers,. and in which the Prospectus may be legally distributed.

dealers

fies this high-price

the

belief

double

within

That

forecast

correct
...

specified period.

then

proves

(something

which
.

does
...

not always happen in real life);
Within the specified time earnmgs reach $4 per share. But, by

then, conditions in its industry
have changed somewhat. The opportunities which
enabled
the
to grow so rapidly have

company

been fully exploited.

The corn-

Aetna Securities Corporation
111

Broadway, New York 6, N. Y.

220 71st Street, Miami

March 16, 1939

Beach, Florida

Roman

Johnson

15 S.E. 3rd Avenue

Fort

Lauderdale, Florida

Practice

Bible."

indicates

analysis will show that the

figure,

these
among

Since

experience

is true of growth stocks.

On the

inflation hedges.

j recognized

However,

a./

business

topics, which have been published, in¬
clude
"Investing Results by Endow-

'v.

'^filhalopportunities for high profits
usua]|y frivolfa? "the hazard, of-..■unInterna¬ pleasant., losses.' I " believe that"

other

typical income,

"get

Strand

articles of his

of the outstanding

some

l growth stocks,- such
tional

stock.

„

larity of growth stocks is that the
profit potential which they offer
appears to be much greater than/
the dividend

be noted that a growth
quite differhedge."

may

-.stock

dividends.

amount

the

where

chance

increasing

without

price

place

broker and

President

"Modern

popu¬

has

version

Foundation, but his views do
necessarily represent those of the
of that Foundation.
A real

"Old

stock

blind

stocks

Directors

unusually high

discredited

Street

not

well-informed

hand,

down

toned

words,

growth

Fischel

com¬

risk.

On the other

EDITOR'S NOTE—Mr. Goldstein is Exec¬
utive
Director of
the Harry & Jan©

and 1.'

yield is the result of greater than
average

non¬

growth

supposed

are

other

rich quick."

intelligent people. Therefore,

most

everybody

price.

arena,

They

risk.

Wall

However, the securities market is
a

energy, without skill, training
contacts, and without substan¬

merely

dividend,

same
a

investors,

investment

the yield should eventually

must

to innumerable

like the Biblical Garden

are

Eden.

tial

any

decline. Given the

that

-the

following extremely simple rules

security which
sells at a higher yield than others
of
comparable quality has real
growth potential, because, in such
sense,

—without the application of time

Unrecognized Growth Possibilities
a

con¬

offer generous fruits in return for

that

However,

be recouped by Capital
(except to the limited ex¬
tent that Capital Gains
may, upon

;- :;.,;

one's

institutional

professional

not

IV.

failure

recognized.

Gains

reinvestment, produce
dividend income).

tendency of
investors, of the
types referred to herein, to invest
in growth stocks, will abate, as the
true nature of -such a policy is

their low yields!

later

requires
risk-taking.
That is
different from

.very

courage

think

some

involved in buying growth stocks

distinction be maintained between

Another

income

the

may

Need for Fundamentals

But] where it is appropriate to
distinguish between income and
principal, the sacrifice of income

same

stocks

loss

managers

However, to be

finance

anticipated

growth

victions.

then
really be

the

investors, which

fund

conformity,

have

income,

cannot

one nficiy*

think of the issuing corporationlJ- 1^si Prlce cannot be justified by
Jhe known facts and is instead
based °n assumptions which may,

not> as a rulej
bonds.
Similarly

municipal

buy

Capital

current

hieh

loses^even thou-h the compai;y .ei^ som*
.
'//j** dwiduals wlth appropi late; re-

^ bracketg should

evitable in any generally recognized growth stock, because such
a
security is much sought after

Also,/

debts of

quarrel

tVinf

institutions

of this article—as one which sells
at

i.e.

government

Few
#

maintained between principal and

'really

thf

alw®-be

additions to current income.
,
To an individual who need not
draw a clear line between income

project and not out of taxe3, offer
recognizably /;lower yields s/than' ^P^Vftmn. But that is hardly
the securities of private borrow-' =su
ltable^or institut ion al investors
ers
which are comparable in all
°r the bulk of the savings pf
important respects except for tax the typical moderate-income perexemption
^
» *
If SQj it seerns to .follow' thst

hp
be

-«
,f-.

Simeon

bonds,"

does.

speculates

jective,/ arid
n

lower interest '

able only out of

mini¬

where

Uncle-Sam

than

local

not

important,

'ft i

nilp<SL^

"blue. tions

wfirs?owTn^nn*1

b'Js.

borrow

rate

where

have

can

states

view

are

borrower

Thus,

rating superior to .that; of
the. Federal. Government, so me;

that/ where
tions

securities:-

of these

credit

reasons

the

orSs and^:chips,"-ttie stockholder

hi Dirt

although

This

article
sents

holds

one

other

conservative

reduc¬

even^though

most

conservative

income, he would

not subtract losses

should

Purchasing this type of security
normally
involves
disagreeing

actual income (except, per¬
haps, to one who trades in capital
assets). Thus, if one is trying to

goose

sound move for

funds

be many of them.

eases.

growth securities

securities,
although,
ob¬
viously, there are not likely to

reverse."

easy

such

while capital-gams do notoffer;current ones
may
do
so.
But, have become valueless or were
any comparable legularity. But, vvhere growth p0tential is evident, sold at a
loss, in computing his
sauce for the gander."
But, in we? do know-that^the tax/ exemp- it is normally reflected in the' income.
investments, 4 circumstances f alter -tion available* from the bonds of price of the shares In such cases
If Capital Losses are not
for' the

sauce

growth

cases,

quire further drawing on principal
therefore produce still lower

;/"What's

such

which

recognized

without

and

Capital

generally

potential can be bought without
appreciable sacrifice of yield and
the special risk of a de¬
cline in price which is inherent in
recognized growth stocks. I think

the difference between the two is

extremely
of

possibilities

growth
not

dependent, conceded.

income from

from

realizing

Vi quate income while they waited.

in¬

and

are

who

anyone

tal loss, besides

"Corpus")

(or

•

who had acquired the stock would
have sustained a substantial
capi¬

Goldstein observes blind investment in growth stocks is merely
toned-down version of the old Wall Street get-rich-quick myth
I

down

will

at
of

rate

company's income
had not risen quite so high, those

make

loss, in addition to sacrificing in¬
come, as their reward for judging
correctly
that
earnings
would

important,

investing pitfalls in the "growth"

numerous

stock sustained

when minimizing risks is a prime objective, and where a dis¬
tinction should be maintained between principal and income.

Cites

slow
it

but its

earnings, which would

price
bought

Contends they actually

considerations

will

SIMEON II. F. GOLDSTEIN

continue

share,

where

times

Financial expert urges particularly on individuals in low-tax
brackets and institutional investors, realistic re-appraisal of

emphasis

growth

Suitable for

current

will

pany

Are Growth Stocks
By

(1303)

the

The Commercial and Financial Chronicle

Thursday, March 19, 1959

(1304)

•

easily.
Smaller electronic units are also

Rapid Progress Ahead for
Electronic Data Processing
By OWEN B.
Assistant

Vice-President, Accounting Machine Sales
Cash Register Co., Dayton, Ohio

wisely.

discerns

trends

three

electronic data processing

and

developments

Current

of these is the
increased
cent

uct

attention is being
given to use of computers as a
valuable
management tool.
An
example is the complex task of
Increasing

improve¬

meeting

problem, it is now possible
determine /• scientifically
the

such

gains in efficiency and
general per-

production schedules" which offer
the maximum manufacturing effi¬
ciencies, • Countless/Similar appli¬
cations— where a huge mass of
variables must be -digested and

formance.

several

ment,

with

resultant

Much

this

alternative- courses

sented to

management—qffer im¬

pressive opportunities;

improvement

pre¬

Potentiali¬

only been in recent years that
significant
strides
have
been
overcoming the resulting
limitations.
Today the emphasis
is on components which are not
only less costly to build, but
easier to assemble and to main¬
New

have

components

al¬

ready made it possible for a given
size
unit to deliver more work

dollar of cost than was pos¬
a
short time ago.. We can

per

sible

expect this trend to be accelerated
in the future/
*
:
.

but

Gardner

another major

has

factor

thesevhre- providing

the major spur to

brought about
by
techno¬
logical advances,

such

ties

been

has

been

devising

the

These

current

the /further de¬

developments

point to rapid progress in the
velopment,, of.. today's /electronic
industry
during' > the
next
few
systems/ •
-■
'-j'y-V* years. With record-keeping prob¬
A
second
clearly
discernible lems
showing no sign of abate¬
trend in the industry is the em¬
and with clerical

ment

being

phasis

tronics'

placed on smaller,
processing machines

of Crosley

the

scents

costs con¬

tinuing to rise, the need for rapid
progress is readily apparent. The
industry is moving ahead to meet

Nashville Division

and

changes

now

occurring affecting elec¬

production and challenges the industry must meet.

He notes,

for example, the closer integration demanded between
development; the emphasis on smaller electronic
systems which are becoming more complex; and the shortened
lead time and increased quality required. Some of the new

research and

include improved

trends

radar,

demands
Production
the

most

defense
dous

alone

longer is
problem in

important

electronics.

The

Eventually,

we envision infrared
techniques that will be applied to

such things as airborne and ship-

growth that has taken place

board fire control systems as well
as
to
surveillance
problems of

defense

recent

the

result of

the

world

useful

doubt

continue

*:,"vr!*;/

work

can

with

cope

carrying

the

require¬

trol,

very

done.

tp^l^D^ig

for

ments

e n

the
de-

nation's

field

the

missile

submarines.:

;

air;traffic

much cremains

con¬

to/ < be
nation's air-

the

•

r waysHnto step with the new- jet
age
we
just now are entering.
The jet transports fly faster* and

Reith

are

s e

sonar,
much
be done to im¬

threat

enemy

to come. How¬
ever,

:f-;./■//■•

•" :

with

the state of the art and to

prove

time

some

intercontinental

mapping.v..
Similarly,

the U. S. finds
itself

missiles, and there will
myriad of commercial uses,
including, for example,;.airborne

/ cli¬
mate in which

will

It will be used for

detection

ballistic

and

political
military

kinds.

many

years

for

air traffic control, and

tremen-

electronics

sonar,

posed by missiles.

components.

made in

tain.

Charge

Reith

search for

The
early
data
processing systems for the
most
part relied on radio and
television components, and it has
better

scheduling production. In

ac¬

prod¬

the large

major trend in elec¬
processing is intensifi¬

the constant

cation

Pinpoints Efficient Scheduling

the

processing area of the elec¬
tronics industry indicate at least
three important trends. The first

third

tronic data

simpler components.

data

Mr.

Search for Better Components

growth of electronic

smaller firm; and search for less costly

equipment for the

and

extraneous

Challenging

C. REITII

Vice-President, Aveo Manufacturing Corp. and Group Executive

can

data

By F.

system is accurate, thus prevent¬
ing the waste of expensive equip¬
ment performing trivial tasks.

scientifically determining production

scheduling and point of most efficiency;

machines

make sure that input to

the industry for the next few
years. Mr. Gardner comments on computer's usefulness as a
managerial tool transcending beyond basic accounting appli¬
pointing to rapid progress in

cations to such things as

Smaller

out

weed

Writer

Are Even More

processing system. Every minute
of the large system's time is val¬
uable.
It is only
good business
to make sure that this time is used

The National

Trends in Defense Electronics

finding increasing usage as edit¬
ing or checking devices between
the raw data and the large data

GARDNER

be added or subtracted

can

changing very

rapidly these days, and this means

they cannot be slacked above air-

producing elec- ports for hours at a time waiting
for
defense for the weather to clear below.
special - purpose
equipment.
New and speedier air traffic con¬
must walk the more difficult path
Several
reasons
underlie
this
this need and there is every rea¬
trol systems must
of a fast-changing technology and
be developed
chinery.
In short, business and development.
One is the depth son to believe that these efforts
smaller profit margins.
immediately if we are to realize
scope
of a relatively un¬
industry are learning to use more and
will be successful.
By nature the electronics indus- the full benefits that the jet aireffectively the tools which en¬ tapped electronics market — the
try is highly competitive, and no plane will afford us. We made a
which cannot
gineers are providing; at the same smaller company
doubt this competition, spawned significant
contribution
to
this
time,- equipment
designers are economically justify a millionLink Elected
and fostered within the industry, field through the development of
achieving a better understanding dollar system but which can prof¬
has had much to do with its rapid
our Volscan unit which assists in
of
management's growing data itably use electronic equipment
A. G.
progress and the contribution it
synchronizing air traffic to get
which has been designed for a
processing needs.
Most early electronic data proc¬ special purpose or for general use
CHICAGO, 111.—Fred H. Link is making to the overall defense the greatest possible utilization of
the air space above us.
In similar has been elected assistant secre¬ effort.
essing systems for business or on a smaller scale.
The growing importance of mis¬
But looking ahead, it would ap¬
industrial use were installed to fashion, there is a pressing need tary of A. G. Becker & Co. Incor¬
siles in the nation's defense im¬
handle
only
standard-type
ac¬ for simpler equipment to do the porated, 120 South La Salle Street, pear that large-scale defense con¬
for
production
of elec- poses a great demand upon the
counting jobs—payroll, inventory, specialized accounting and data members of the New York and tracts
accounts
receivable
and
com¬ processing jobs of the larger firm. Midwest Stock Exchanges.
Ironies systems are pretty much a
electronics industry to develop
parable applications. There will A special-purpose electronic post¬
thing of the past. Instead, we are better communciations, guidance
ing machine developed by our
building smaller numbers of each and ground support equipment,
be a continuing demand for ap¬
company, for example, has found
system, and the systems are beTo a large degree, the nation's
plying medium- and large-scale

systems procedures
and
organization of available
electronic
techniques
and
ma¬

better

unitized data

better

companies

that

equipment

Ironies

Becker & Go.

C. M. Paul V.-P.

application in banks
of practically all sizes, from the
largest to some of the smallest.
widespead

computers to the basic accounting

there

among

mate

however,

Today,

applications,

increased

Another

awareness

management that the ulti¬

profit potential in electronic

for

reason

the

Of A. M. Kidder Go.
C. Michael Paul has been elected

trend
a

to
the

smaller, unitized machines is
desirability for certain appli-

instal¬

cations-of using multi-unit

equipment may extent beyond the

lations.

accounting-type application, par¬

chines

ticularly in areas that previously

Vice -President of A. M. Kidder

Co.,

York
York

major interruptions in the event

were

costly

too

time-consuming and too

under

conventional

meth¬

Where

battery

there

employed

equipment failure.

Inc.,

City,
Stock

•

Also, flex¬

DENVER,
Securities

I his announcement is neither

offer

securities. The
NEW

sell

changes, units

nor a

Exchange.

Special to The Financial Chronicle)

Cannady is

application

Street, New
of the New

With Columbine Sees.

ibility of the system is improved;
the

Wall

ma¬

are

ods.

members

solicitation of

offer

Colo.
now

Cor]).,

buy

any

—

Wilbert

with

021

Columbine

17th

of these

offering is made only by the Prospectus.

Street.

coming more and more complex,
Thus," research and development
are now so closely related to production they cannot be distantly
separated as
in the past.

Also, because lead time from
conceptual design and production
must
be
shortened, the various
defense

and more

companies
which perform well and consistently, turning out a quality prod¬
toward

search and

that

may

and

be obtained from such of the undersigned

engineers
upon
this

philosophical base that the

Areas

the

Specialization

Aetna Securities

areas

Mr.

Marr, who has
been

t ment

nves

the

business
many

formerly

was

Lawrence

Marr

for

years

of
Trading

Manager
the

Department of the Chicago Office
of Blair & Go. Incorporated.

of specializa¬

Geo. Putnam Fund

be done to im-

of the Trustees of the George Putnam Fund, Inc. of Boston.
'

radar,

remains to

characteristics

capabilities
|

Ex¬

changes.

the state of art.
Radar
systems
with higher resolution

much

Corporation

Chicago

Stock

BOSTON, ' Mass. — Charles M.
Werly has been elected Chairman

tion

field

which

prove

March 13, 1959

and

the

York

Werly Elected by

tronics.

One

mem¬

Crosley Division of Avco is plan¬
ning its future in defense elec¬

New

Stanley Heller & Co.

Incor¬

New

has

exist today only

scientists.

broad

legally offer these securities in this State.

Maltz, Greenwald & Co.

bers

that

ideas in the minds of

Becker

South La Salle

development programs

which

way,
as

G.
Co.

Street,

just now getting under¬

are

porated, ?120

will come from re¬

next few years

Lawrence

Army,

future.

its

—

50% of all
defense electronics business in the

for

estimated

been

■

the Prospectus

111.

Marr has become associated with

fast-moving industries, de¬
look to new

products

Class-Tile Industries, Inc.

(Special to The Financial Chronicle)

CHICAGO,

fense electronics must

($.10 Par Value)

per

With A. G. Becker Co.

Navy, Air Force or the Marines if
it is to maintain its status.
Like

Common Stock

are even more

Lawrence N. Marr Now

selective in the types of

other

$3.00

that the challenges
challenging,

standpoint this means that it

work it undertakes for the

Price:

people and its business firms to
accept challenges today. In defense electronics, it would seem

uct, on schedule, with little if any
financial over run. From a com¬
must

110,000 Shares

(.opies

agencies more

looking

are

pany

ISSUE,

often true
with many

was

Indeed,

products, engineering and production personnel must be completely
integrated.

defense strength tomorrow depends upon the willingness of its

Sonar
areas

are

'and

and

longer

range

infrared

are

„

Paine Webber Adds

in the offing.
two

MINNEAPOLIS, Minn.

—

John

which leave much room for

H. Quinlan is with Paine, Webber,

development.

Jackson & Curtis, Pillsbury Bldg.

investigation

and

Volume

189

Number 5880

The Commercial and Financial Chronicle

(1305)
K

The Unpleasant Facts Regarding
The Cnrrency Outlook for 1959
By FRANZ PICK*

sary

painful but absolutely neces¬
deflationary policy in the last

quarter of 1957. The discount rate

pushed

was

think

taken.

rency

and,

billion,

fearing

adoption of
The international financial

against

point of

we are near a

return, he

urges

financial operations to European banks, and of the

which

process

showed

When,.

famous

Europeans

j Ik

ibr-qy..
>

our

;

■

goods

and.

the borderlines

into

foreign

many

services
of

our

lands

beyond

country and
is

possible

rather

.was

.until

ago

and

1 i

here
U.

Now

exports

Franz

Dr.

the

United

States

decline

neariy

in the postwar
convinced that many
had and still have reason to
com-

period. I

plain about it. And where there is
to

complain, there is also

the desire to search for
the

discover

medicine,
learn

time,

counted

only

what

such

would

its

real

can you

well

causes

are.

it.

dilemma
with

of thinking

way

that

derives

are

from

fortunate

development
monetary policy.
The

un-

our

longer almighty dollar

dominates

the whole problem. It
is, to my mind at least, the major
tragedy of our present days. Most
of
to

not want to think of

analyze it.

People

under

are

the illusion that

being reasonably
satisfied with their earnings or
jobs, they do not have to worry
about

such

Federal

brow

things as the
the purchasing

budget,
of

power

remote

the

highconcerning such

currency

questions

far-fetched

items

the

balance

trade or the balance of
payments. A general neglect of mone-

tary

fiscal

and

led

down

knowledge

the

road

has
eco-

nomic decline. As long as we do
not
leave
the
territory of the
United States, we have, I
admit,
very

little

seem

reason to

complain. We
that, whatever

believe

may be, a Dollar is a Dollar. Sure,
it buys less than last
year, and
only
about
47
cents
of
what
it bought 19 years ago. But who
cares? Don't you know that everybody in South America, in Southeast

Asia

behind

the

Iron

Cutrain, wants Dollars? That the
Dollar

That

still

the

King everywhere?

famous

•

"Dollar-Gap"

exists?

Minnesota

in
the

World

of my

one person

and

back

Shocked by Dollar's Discount
hi Italy, I decided to buy three

to pay for them with an American

delight
coldly

Sterling"

was

made

its

external

hard

any

currency

into gold, Sterling again

to
a
position of absolute
monetary leadership.
Naturally, the banker in South¬

California

ern

northern

Massachusetts has not the slightest
interest in such a historic achieve¬
ment.

But
Sterling's
external
convertibility was the signal that
simply forced its principal Euro¬
pean
trade
partners > to
adopt
identical convertibility measures
for their monetary units.':'
The European currency reforms
of Dec. 28, 1958, were well-pre¬
pared by people who can give us
'lessons in monetary theory and
who were not afraid of the opposi¬
tion

politicians

who

Confederation

trade

new

Our

with

area,

about

well

gasoline consumption, in Europe
South America, Africa and Asia.

the

car

manufacturers cannot produce

time

same

the

European

and
European Confedera¬ international demand for
their
tion, which probably will come products.
Fiat,
Alfa
Romeo,
into being around 1975. In this Renault and
Volkswagen are now
towards

satisfy

domestic

new

European market, the six
partner countries can easily reach

in the Common Market. The Brit¬

the

also

stage

full

convertibility.
Belgium-Luxembourg already
hard

currency.
Holland
Italy is in excellent
monetary condition. Germany, for
all
practical purposes, is com¬
a

too.

ish

motor

vehicles

size

small

have

constantly gained in
export sales—at our expense. But
cars
are
not the only source of
complications
for
us.
Nearly

everywhere,
me:

people

told

abroad

want to eat ham¬

not

pletely convertible.

France, after
recent devaluations, is near
stability and should she be able
to pacify Algeria, she could easily
become a very rich country again.
The long-range goal of a CommonMarket-Currency, a utopia today,
seems like a strong
possibility to
me. Therefore, we face two con¬
structive powers of monetary skill

burgers,

her

want to live as we like and resent

outside

problems

the

Dollar

Area:

ketchup

salads.

tutoring us about the Ameri¬
of life. And we want to
our low wages as long as
we can. We like gold and are not
as hypocritical as you
are in the
approach to the yellow metal.
Keep your superiority complexes
your
can

way

stick to

at home

and let
as

work

our

wish.

(1) Britain, the Sterling Area,
Certainly there is a lot of ex¬
aggeration
in
these
comments.
gal; traditionally under the influ¬ People abroad still love our cheap
ence of Sterling.
underwear and our mass produced
'i (2) The Common Market Group
clothing; they like our super¬

the Scandinavian lands and Portu¬

ofthe

six

Continental

They> have

all

countries.

recognized

that

0 n e

tary
convertibility
and
stability of the purchasing power

know

Austria, Belgium-Luxembourg,
Denmark, France, Germany, Italy,
Netherlands,
Norway,
Portugal,
Sweden,
Switzerland
and
the
United Kingdom.

selves in import value, as

enough

successful step

and

of their units is more important
concerning
theory.
At" than full employment and the
present 13 countries-have made illusionary
"happiness" of chil¬
their
foreign
trade
convertible dren, who do not want to
study
into any hard currency that the
foreign languages or other diffi¬
seller of goods wishes to obtain cult
subjects in school. They also
from them. These countries are, in
pay their professors better than
alphabetical order:*
truckdfivers.

nothing

—

shipped abroad.
outpriced them¬

as we

have

cars

in it the first

will

for

time

have

the

ago,

we have —- for the
in postwar history —
three times as many

country

imported

165,000,000
people,
is
probably
the
most
promising economic group of the
present period. I, personally, see

that it could be done.

weeks

this

first

these

For

portant,
back

few, but rather im¬
we have to look

reasons

into

our

collection

English

proverbs.

tells

that

One

what

one

old

them
man's

markets

admire

and

imitate

them.

They

airplanes.. But here
too, the French "Caravelle" and
the British turbo-jets "Viscount"
and "Britannia" are selling at a
surprisingly
high
speed.
The
American typewriter has found a
very
tough competitor in Ger¬
many's
"Olympia."
Our
sound
equipment is more expensive than
Dutch
or
German
products of
equal quality.
<
our,

And slowly but steadily we are
pricing ourselves out of the mar¬
kets not only of Western Europe,
but also in many other countries.
In East Asia, it is Red China and
Japan who are successfully beat¬

amounts

times

only

who had

Greenbacks

three

years

with

billion

$78.6

the annual

2.6

volume of total

the

world's

Europe will poison us

bit.

American exports and imports. As
these nations include those among

trade

accounts

for

major slice of the world's total.
important that the con¬
vertibility
decisions
were
co¬

It is also

lost the fear of devaluation of his

Measures Effect Upon Us

domestic

Commercial

repercussions will
be multifold. I have already men¬
tioned our super-cars. We often
their

use

160* H.P.

of ground meat.

ounces

become

Now, with external convertibil¬

ity in Western Europe and Britain,
the exporter in these countries has

Let;us find out why:

most

industrially de¬
veloped lands, it is clear that their
participation
in
overall
inter¬

quite

fetch

ported

currency.

his

banks

know

They have

what

that

Continued

unpopular in Europe. In

ago,

This advertisement is neither

Part/wi.th

atTa. dis-;

And then I found
out~\n rapld sequence-that the
world's ?"ce most powerful mone,ary umt was selling at a small
dlscoul,lt
Llfbon> Amsterdam,
Brussels, Frankfurt, Stockholm,
Copenhagen Zurich, and Vienna,
That was quite a shock. I also saw
that D,?1Ja': banknotes in England
1'stfd at a discount of just
!'i%- And s.u<* changes in moneary appreciation by cold-blooded
c0Vn^.

of sterling,
?Ppo*"]f the shrinking standing of
the Dollar, continued during this
time Britain s monetary manage-

™ent' handled by men who really
know what they are doing,

worked towards a lofty goal. After
world-wide

confidence,

crisis

following

Sterling

London's

Treasury

the

Suez

concentrated

solicitation of

offer to buy

any

of these

100,000 Shares
,

Waste

King Corporation

Series C 6% Cumulative Convertible Preferred Stock
($17.50 Par Value)

Price $17.50 Per Share

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

Straus, Blosser & McDowell

?0"cal.led Dollar Prestige was and
's shrinking,
e. continued rise

nor a

offering is made only by the Prospectus.

ISSUE

NEW

bankers and financiers abroad are,
according to my experience extremely troublesome events. They
were- f<* "early a,whole year'
commented upon by our press We
have our own private iron curtains
*01 these events. But that also

hoes not help. The problem still
^mains and we cannot change it.
ln London Frankfurt, Brussels,
,Zu"eh 5nd Amsterdam it is a
leading topic of conversation. The

offer to sell

securities. The

Lme per unit. As the official rate
is 625 Lire per Dollar, I had to

Bache & Co.

II. M.

Byllesby and Company
(Incorporated)

Crowell, Weedon & Co.

Dempsey-Tegeler & Co.
March 18, 1959

and

sup¬

export

long-term credit to liis customers.
We

them now. He
Lire only and I had to

to the bank next door, where
Dollars were exchanged at 615

Better

credit insurance, he is able to give

refused

wanted
rny

such

owner,

Trade" Association* events, the Bank of England and

Minneapolis, Minn.

well

shirts
in
Rome.
They
were
wrapped for me and when I tried national

a
*a

few

are used? We won't buy them. I
heard identical comments everywhere between Paris and Tokyo,

now

the

rose

became

Dec. 28,

This

population

few

—

the

again? Why do you waste so much
It does
not require
a
special meat easily can be the other's
chrome, build ridiculous wings explanation to state that the total poison. And I am willing to guess ing us with their manufactured
and gigantic trunks that seldom foreign trade of these countries that the recent monetary events products.

accepted

with

everyone's
approval. Yet in spite of this
fact,
I will try to
give the picture as

faced

about one
100 to 120

people in the

locomotives to carry
from home to work

is, will not

meet

see

made.

States still believe that you must
have vehicles as big and powerful

patent

point: how

$20 hill, the shop

the

third

circulating
traffic in

town. And

afraid that their presentation, as cold and as factual as it

every

American

was

remedy

aggravating problem.

And I

car

clever French friends explained
this change to me with this simple

15%, the heaviest

order

public relations artists

from

for

half

center of

represented

•

than I wanted

second

European
cars
heavy afternoon

Pick

dropped from $1,734 million average in 1957 to only $1,496 million
average during the year 1958. This

reason

time

short

Detroit product among

administration invented the
"recession" for it. Monthly

word

once

the

S. The

of the

and

the

At that

fourth

I learned

**1955.

ntraction

co
<

But un¬

J3ee.n1 in the French''capital since

of trouble. We

abroad

Towards

1957 and
*i 1958
we
exjperienced a lot

even

•jin

September of last year, I went on
business trip around the world.
My first stop was Paris. I had not

into

pretty

to about it.

ran

North

country clubs
in the out-of-town press.

1956.

«difficult

sound
Dakota

Louisiana

doubts

Then it befC a me

good

cur¬

rose

might

that

unbelievably powerful Dollar has
become
the
object
of
serious

jpostwar
'period, and

fortunately it is not true. The

in the
immediate
easy

remained

Well,

but

and

"Transferable

owners—into

■

The task of moving

held,

Dollar

convertible

country for funds seeking monetary stability.

only

ceased to exist when it

n« longer powerful dollar and to distrust
are said to have regarding U. S. A. as an asylum

terms our

than

By this measure, England's
currency managers, not listening
to lobbies, labor or other
leaders,

pricing ourselves out of foreign markets, are far from
pleasant He refers to European Common Market repercussion

ft;

less

sold short by the

was

not
the

mer¬

1958.

;

start

Europe of six

automoblies

Sees European

groaned. But it

And

externally convertible

deflationary austerity program.
specialist admits that a discussion of dollar discounting in
principal European capitals, of loss of banking and other

measures were

months, Sterling, from

international financial ignorance around us, Dr. Pick warns
that the past year's capital outflow is far from ended
a

labor

and

the

Can. you
say

industrialists,

really worked.

iron curtain of

with

market in

trading partners.

similar step? Credits

British

chants

Charging bankers and editors for draping

7%.

would

you
a

cut, austerity

were

Publisher, Pick's World Currency Report, New York City

up; to

what

would take

ordinated
common

Cruttenden, Podesta & Co.

William R. Staats & Co.

means.

The

page

The Commercial and

Electronic Components

have foreseen when the work was initiated.

By L. B. DAVIS*

Thursday, March 19, 1959

confuse research
with engineering development in electronics in ascertain¬
ing potential results, or the amount of money that
should go into research and development work. Engi¬
neering development is said to require the largest
manpower and dollar expenditures which come about
suggestion made here is not to

The

work

research

after

forth

brought

has

needed

the

Mr. Davis points out the magnitude of
Research and Development on electronic components;

knowledge.

explains how it contributes to the ultimate generation of
new component products, new and improved equipment,
and entirely new

are

desirable

breakdown.

further

make

Here

concerned with two classes:

(1)

Berkley

Work that is directed

demonstrating the feasibiilty of a new material,
process,
or operable product; and (2) The subsequent
work involved with defining the end result in terms
suitable for application or manufacture, and in estab¬
lishing and operating production facilities.

This latter

portion of the total work—what

and dollar expenditures/
evaluation of the potential results

might
required

manpower

Size

the Electronics Industry.

the

the Electronic

that were created
research and development.
ponents

Success and Failures

with

the

J 956

1957

$1.60

0.95

1.30

1.38

2.70

3.90

4.10

0.85

0.90

0.86

Tubes, Semiconductors

developed.

$7>80

An obvious

$7.94
\

♦These figures represent total value
Infcib4ing-'to&m
-figures d„ not flunlirate comuonents. thus «niy
—figure, do „..i duplicate com,.unci,.«.« ."dnlv^renlacement
Components included separately.

v? '.
..v

facilities required to carry it to successful comple¬
tion.
If you do this thoroughly, you will be able to

markets for most components provides
>

11*1-

4- 1\

41-%

i-J

1VA O

175

sta^l

Vil r irv4~ ft I eit/iR

98
957

Others

Total

many

All

much

rrianv electronics firms mak-

electronics firms mak:,;jv$827jirV;ing;v;only electroiiic .equipment. 'This may be a very.
Not
143
r-t iihpqrtant point to,'distinguish betweeh firms broadly1»
225
available.
"biisecb in components^ compared'with those;heavy in

220

__ _ _ _ _

fnr
A bility and Thss risk- titan for
and.Ibss risk.than

IPS?

$752
_____

Resistors

define the work to be done and the kinds of competence

•;

:-,v-^

Capacitors

■
This increases the risk;

A *

1956

Tubes

V;." of the need lor extensive R & D.

/iv/mi!sv*w
•

problem facing electronic component busi-

is that electronic component production requires
^continuing icapital investment1 because'of rapid obsoles-f:
•
j ,
;2
cen(,p o[ pj.ocIucts an<J producti0n equipment, and because
nesses

,viv%

Electronic

the

;•

fa'.extensive xv^ y. xnis ineieases uie the
of
^r^oLdqing business and has limited the profit level oj
i Components 'Industry^'vindustry. group.
; '
-V '
,«! % - * "V V!-:^
a# nniioi.iV-v
WW**
V Am interesting consideration is that the: breadth of;

J SOURCE: EIA Marketing Data Department.*
of

business is

components

•

Need for New Capital

Sales-... $6.10

Factory

management

for the future, it is necessary to consider a
broad field of problems.
To many people R & D is the
life blood of new products and potential profits.
This
is not always true, however, as there are failures, R&D
costs to reach production much higher than anticipated, '
and sometimes there is difficulty in marketing products

1958

$1-70

the

planning

$1.60

Transformers

scientists and engineers
having the best competence and laboratory facilities will
be needed.; It is, therefore, necessary to recognize and
case,

possible before, such as transistors in automobile igni¬
tion systems,
satellites, and semiconductor controlled
rectifiers to replace switches, relays and rotating equip¬
ment. These developments could change the whole out¬
look of some equipment businesses.

the result of prior year

Products

In another

proper

into production.

by component R&D, which is making feasible
electronic, and electronically controlled equipments, not

When

—

;

sible

(Billions of Dollars)

Military Products
Replacement Parts,

looking at the last decade it appears that a great
part of the advances in electronic equipment has been
made possible by the development of components.
It
likewise follows that future growth is being made pos¬

Size of the Electronics Industry

recognized that particularly in the com¬

When

the past decade the Electronics Industry has
from a dollar volume of 1% billion in 1947, to
nearly $8 billion in 1958. During this same period, busi-^
ness in
electronic components has increased from $470
million to over $2 billion.
This nearly 5-to-l growth
has resulted almost entirely from new electronic com¬

114ze
ize

spends about 8% of its sale#
' '
J,

Industry

Components

Over

Total

ponents business, development of production equipment
be just as important as product development. With
extremely small size, and the process control becom- 1
ing such significant factors in most of the new compo-*
nents, it is increasingly important to develop production >
equipment as the product is developed.
'

grown

Consumer

•' i"r••

may

by kinds of products

draftsman and some skilled mechanics,
tools, can sometimes carry a product

$200 plus or minus 50

information, it would appear that the elec-;

Electronic Components Industry.

Semiconductors
case,

$170 million

of the Electronic Components Industry.,

Electron

one

60 plus or minus 20

tronic components industry
dollar on R&D.

of the Electronics Industry.

Size

different.

50 million

::v

From this

following manner:

R&D
work then, it is important to recognize these distinctions
in the kind of work, because the skills required and the;
type of facilities necessary to conduct the work are
any

$100 plus or minus 20
40 plus or minus 10

the

■*:i

Call engineering work—is by far the largest in

;

figures are given to indicate probable limits. These fig¬
engineering expense allocated to equipment as well as

products.

repiao^ed.,

Engineering Costs More

range

include

ures

Relationships

Industrial Products.

are

toward

Tables

show relationships, we cite these data

order to

R
'

The

It should be

Shows

Davjs

____________

:l»58

$90 million
30 million

Components-^

Total

included.

discussing the magnitude of Research and Develop¬
in evaluating any of this work as to the

Other

they represent expenditures in a broad area from
what we might call production engi¬
neering. Because of this, we are unable to make a com- j
plete breakdown by categories of work. All we know is
that the greatest expenditures come after research work
has brought forth the needed knowledge. Where it is
possible to do so, we will indicate what kinds of work

ment work, and

—

_■■>"

Semiconductors

basic research to

the

Work

J 956

that

businesses; and offers ten questions
a firm's R&D program.

probable end results it becomes important to define what
we mean by Research and Development.
The reason for
this arises from the fact that some
estimates *may
include; production
engineering work as well as research
work, whereas others may not. One
method
of distinguishing
between
the kinds of work is to call Research
—Learning Work; and Development
—Applying Work.
■ • % yvLearning work results in the gen¬
eration
of
knowledge and under¬
standing of basic principles and the
Laws of Nature that may be applied
to the development of new or im¬
proved materials, processes, and
products.
In the latter category—Applying

Electron Tubes

D in Electric Components

Basic R &

and

considering these figures, we must .remember

field.

industry were so financed.

Applied

look at the magnitude of
the electronic components

Now, let us take a brief
research and development in

$6.5

ments

ter predict the new things that may evolve. In this way,
perhaps, we can decide more realistically how much and
where to spend research and development money;
/
:

that should be asked about
In

that $3.1 billion of.»

billion industry basic and applied R&D for
1956 was financed by the government. Thus, the govern¬
ment paid for 48% of industry's R & D. The NSF figures
for 1956 show that 61% of electronic applied R & D in '•
the electronics industry was government financed, while !•
87% in the aircraft industry, 41% in machinery industry,
and 43%
in telecommunications and scientific instru¬
the

Thus, by studying past case histories, examining the.:
kind of basic investigations, and relating to end results
we can evaluate the importance of future work and bet¬

Division
General Electric Co., Owensboro, Ky.
Manager, Component

General

„

National Science Foundation states

host ol
which
brought these new devices into being and made possible
the complex systems we have today produced results
that could not be predicted. The end value of such R&D
work probably is thousands of times what any one might *
tubes, transistors, magnetrons, klystrons, and a
The
research
and
development work

others.

Value of R & D Woik in

Financial Chronicle

(1306;

gal^s f olia- is snent on R & D. It is well known from
long, experience that; companies with the largest growth

$2,200 ;'m

$2,280

__________

and

decide how much and where the R & D money should be
allocated for the best results.
Even then, in the first

These figures

include

factory sales
~

electronic equipment.

SOURCE:

EIA

Marketing Data Department;

bage^of the sales dollar does not insure growth in the.'

category; of work—the learning work—you will be un¬
able to predict results in all cases. However, results will
be

obtained

and

those

that

are

successful

will

far

out¬

weigh the ones that are not. Also, the people with the
required competence in the particular work you wish to
have done, will be able to give you the best predictions

probable cost, time, and results.

the

second

category—applying

work—more

accu¬

rate

predictions can be made, particularly in the second
phase of this work—the work of placing a feasibility
proven product into production.
In order to

apply these principles to future work that
may be undertaken, let us take a look at a recent new
product evolution and examine how it was born. In
looking back, it is clear that most of our greatest inno¬
vations

resulted

in basic fields.

from

research

and

development work

It is evident, also, that the scientists and

engineers working on these basic investigations had only
a vague concept of the end results.
They were searching
knowledge and understanding on the behavior of

for

materials and what natural laws caused their
properties.
For

example,

scientists had been working for years
properties of semiconductor materials.

to learn about the

They had

idea that transistors would be developed as
As more and more knowledge evolved

Industry

Electronic-Electrical Systs., Parts
Aircraft & Associated Parts

Machinery (including computers)
Telecommunicat'ns & Broadcast'g
Profess! & Scientific Instruments

Ordnance

Fabric. Metal Prods. &

amounts

spent

universities,

government,

1956

1957

T$10b
'

f$11.2
*7.3

1.4

±*1.6

11.8

This

analogy applies to radio, television, fluores¬
lighting, atomic energy—and in fact to all our new
technologies and industries.
role

ments is

electronic

components

in these

evident—electron tubes, camera

develop¬
tubes, picture

♦Only these figures

are known
is very rough estimated
tion; $11.2 b and 12.8 are our
percent for industry R & D

where

have

SThe SI.6

and

electronics

♦An

curity

address

by Mr. Davis before the New York
Analysts, New York City, March 4, 1959.

Society

Se¬

in
CU

1956,
O

i.e.,
rtCf

SI.8
&

SC.5

least

rough relationship.

figures
is
x
O

the

with any degree of accuracy.
by National Science, Founda¬
calculations "assuming" same
in 1957 and 1958 as in 1956

are
same

21.6%

our

calculations "assuming"
(21.6%) of (2) as
$7.3 x 21.6% =s= $1.6;

percent

SI.4;

price
is

measured?

How is productivity of R & D

(7)

What administrative controls exist for getting
fective operation of R & D work?
Wbat new products have been recently
market through R&D outlays?

ef¬

brought to

(9) What sales volume have new products resulted in?
(10) Has R&D aimed at reducting production cost and

improving quality resulted in better market ac¬
ceptance—without profit margin penalty?

(Applied only: Industry only)

fSlO b

Are government contracts for R&D only, or

same

cent

The

(3) Electronics R & D

(8)

*8.3

(Basic & Applied: Industry only)

can

;•

plus fixed fee.

allocations?

f$12.8

*6.5

(Basic&Applied: Govt. & Indus.)

(6)

1958

begin to predict to a greater
extent what additional applications can be
developed.
we

or¬

one

Out of this developed the remarkable devices

today "and

research

The following table is given to provide a broad per¬
spective to the R&D figures shown above. (Please note
footnotes for important assumptions and sources.)

(2) R & D

trolled.

private

ganizations.

direction and later that the current flow could be
have

and

;

production included?
(4) Do R & D contracts have foreseeable commercial
use
or
application? If so, what does Marketing
say possible sales volume will be?
(5) Are R&D expenditures tied as a percentage of
sales to the budget, or are they single product

These figures represent only applied R&D directed
which have specific commercial objectives.
They

towards
exclude
basic research made solely to advance scientific knowledge.
Also, the
figures are only for applied R&D by industry and do not include
NOTE:

discoveries

government contracts on fixed

and on cost

(3)

National Science Foundation.

„

(2) Percent of
:

(1) Total R & D

con¬

are:,;V

Percent of R & D that is government and company

' (1)

;

$1,392.9

'T'es it became apparent that devices could
be constructed that would conduct current in

only

& D program
financed.

SOURCE:

examine in its

Some of the items a management must

•.

il'R

36.7.

V42.3

All Other__

usable products.
from these st

137.0
164.5

The electronic

components industry is a group of fast

moving businesses that are based firmly in Research and
Development.
Components have contributed substan¬
tially to the advancement of electronics in defense, en¬
tertainment and industry.
This will continue to be a
very

fluid and competitive industry, with R & D a high
of importance.
To the swift will go the rewards.

order

Volume 189

Number

5830

The Commercial and Financial Chronicle

(1307)

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✓

DR. HARVEY E. WHITE

teaches Atomic Physics to 270,000 students

NBC's

5-day-a-week "Continental Classroom.'

new
Five

years

from

Americas student

now

population will approach 50 million
million above

—

todays' figure. By present
lie too few teachers

standards there may
and

classrooms.

of this

But

important part v

problem will be solved through

electronics.

Already, teachers
interest and

the

are

audio-visual aids, TV,
in

as:

ondary schools have installed closed-cir¬

home, adults

cuit TV to

earning school credits through television.
Helping the teachers reach millions of

improve instructing techniques

and
a

spread top talent beyond the walls of
single classroom. Still other schools use

the

programs

of America's 35 licensed
approximately
are RCA-equipped. Even at

educational TV stations

60% of which

—

and youngsters

the

and tape recorders

"Language Laboratory
o

sec-

RADIO

alike

are

students, providing communities with bet¬
ter

schooling at the least cost are just a
ways RCA helps strengthen
America—through electronics.
few of the

RCA

Package." More than 200 colleges and
o

learning

increasing student

help of such electronic aids

included

life into

covering ground faster with

radios, records and record players, special

■

CORPORATION

OF AMERICA

The Commercial and Financial Chronicle
16

Thursday, March 19, 1959

(1308)

high grade investment

THE EDITOR:

LETTER TO

medium.

THE MARKET... AND YOU

Interesting Rail Issue

By WALLACE STREETE

its

dividend

Frank Cist rebuts the

something of a candifor improvement now
cuses in some of the available play recently has been on its date
uncertainties to stage their rocket fuel work. Coppers that it has made a turn for the
hardest retreat in a month were helped only moderately better. The line showed a
this week but in the subse¬ by new increases in the price good boost m its net profit
of the metal.
last year over >1957 and proquent trading the harder-hit
found

Stocks

Chemical,

ex¬ Thiokol

enough

items rebounded well to indi¬

cate that there is still a

good

" v<< y

...

big but is

the

and

can

be covered more

Some

whi^ndled up a total of

handy excuse the pro¬ 469,700 shares in last week s
posals of the Federal Reserve five sessions, ran turnover
Board to tighten credit used well past that figure in only
in securities purchases was a couple of sessions this week.
available. Various trial bal¬ Also prominent on volume
loons had been released over and with prices improving
the weekend pertaining to were Callahan Mining, List
tightening, such as substitu¬ Industries and American
tion-regulations, but still Cable, all considerably less
without anything as drastic than prime investment grade,
*
*
*
indicated as a complete end to

50% and the jsSUe then sold
score 0f points higher than
the recent

jhand

the

for food

urgent deshares as a

basic

necessity to the economy in today's rush for space
age items. But there was good
value available in the opinion

■

X.
X

••'
:

..Xf

■'Si

referred to in the "follow¬
previously published in the
Chronicle as follows: Mr. Hazlitt's articles critical
of.
Keynesian concepts, on Aug. 28, Sept. 4, and-Sept. 11j
1958; Mr. Cist's letter of rebuttal on Dec. 11, 1958; and
communications from Messrs. Spitz and Greaves defend¬
ing Mr. Hazlitt on Jan. 8,1959. X

ing

price.

was

Hazlitt's critique of Keynes.

EDITOR'S NOTE—The material

Values in tire Foods

Gone

published criticisms by Richard Spitz

In view of our con¬
off the gold standard "after 25 years of effort,"
Mr. Cist urges Hazlitt change his attack on the Keynesian soft
money concepts. Attempts to show the contribution to defense
of gold standard which simple revisions in conventional think¬
ing have to offer. Maintains a "normal" level of general pro¬
duction is invaluable tool for guiding current monetary policy.
Offers uncertainty regarding our tariff policy as most serious
obstacle to world currency stabilization; with hope for future
dependent on our agreeing to slow freeing of world- trade.

;

tinued position

heavy volume in low- than three times' over this
supply of investment funds priced issues gave a speculayear when the payment had
around whenever prices back tive
tinge to the markets more been boosted t0 ' $1'it repredown importantly.
times than not. Avco Mfg., g^nted a
payout of more than
For

Percy L. Greaves, Jr. of his commentary which had taken

issue with

jections are that the current'
dividend

Critique gxjl

Of Keynes

twice
quarterly

payment

from $1 to 50 cents

Hazlitt's

Illinois Central had to trim

communication,

was

Editor, Commercial and Financial
Chronicle:
In

iair

picture

briefly.

The

facts

margin trading or any re¬
One of the more
quirement to make buyers
priced items in the electronic out the recent food boom was
who are still carrying old ac¬
group is P. R. Mallory & Co. Consolidated Foods which has
counts at 50% or 70% ante
which, unlike some of the fa- been so busy expanding reup the cash to put everything
vorites, is still well depressed cently, and diluting its earnon the 90% basis which is the
below the 1957 peak as a re- ings by constant increase in
current

in mid-October last

set

was

This rate

minimum.

suit of the setback suffered in

year. It is the highest level turned
upward and on the
the Fed has ordained except
basis of results for last year's
for a period just shy of a year
final
quarter the : issue is
at the end of War II when it

"100%"

was

all.

low.

Sensational Zenith

'
*

Naturally the multipoint
gainers of r e c e n t sessions

the recent acquisitions. One

bakery division, acquired only
a bit more than two years ago,
had sales then of $9 million,
Last year this division's sales
were $60 million.

rather widely
Another factor that hasn't
and has been any help to better marcontinuing its pursuit of ket action for Consolidated is
more diversification and that
its fiscal year ends ^ in

Mallory is

the hardest hit and the diversified company

were

snapped back sharp¬ been

that

ones

dilution is about at an end.
And they are bolstered in

their opinion of Consolidated
priced at only 12-times pro- Foods by some of the sharp
margin
jected earnings at that rate, earnings increases in some of

The margin This is far below the timesrate is the percent of cash a
earnings ratios for the others
customer must deposit for a
where the price has
more
specific transaction.
than doubled over the 1958
trading

Some
think that this

outstanding shar es.

has students now

Business

recession.

the

ly. Zenith Radio

the

was

sen¬

even

part of the recession
included in its
range of a baker's dozen including the automotive, ap- annual report. And since the
points, which came close to pliance and television lines previous year included some

sational

sessions

two

which in

mover

swung

only

oyer

serves

wide range

with

tomers

cus-

matching the range of the where the recession was felt
last
wide swinging, high - priced hard
year
which unSuperior Oil with its price tag doubtedly has had a part in
some seven times higher.
keeping the stock restrained,
-

:;t

Steels

:Jc

were

rather immune

Rails

had

June

components, year will be

its

few

friends

de-

cents

non-recurring

profit, the comparison will be
that much more unfavorable
on the surface. In time the
true growth potential will be

inore <dear*

officially that it is hopeful of Gypsum which has not made
prospects of even higher out¬ showing $7 per share profit anY cash distribution since it
put ahead in the immediate for this year against last was spun-off by Certainteed.

second

week

future. That
ders

row

some

of the

borrowing

are

and

or¬

from ring

third quarter needs as protec¬
tion against a midyear strike
was

keeping opinion reserved.
larger producers'

In fact, the

shares showed

themselves

vulnerable when

was

around

and

vear's $5.37 but without stir-

selling

restrained

when recovery set in.

Electronics continue

the

was

able

hold

the

decline

nues

the

rently

fact

on a

which is

that

cur-

$4 dividend basis
peak for the line

make it the exception that is
in position to post an all-time

dress about Berlin encourag¬

other

ing

that

of the demand.
*

Chemicals

had

in
a

varying

time of it, even where, as in

Plants in four .different sites

$16 million as reve- and most of it financed by refell $77 million. That tained earnings. The end re-

in net to

bright spot when the going is
good, the stress laid on missile high. This road is also somework in the President's ad¬
thing of an exception in ansome

Dec.

That comment
has

11th,

*.*i'

accorded

that

General

whose

two

discussion

Theory • < appeared
in England were

first of

cut from

(just after the 1920 boom) to

which,
Richard
Spitz, opens
by charging
me with "glo¬
rifying soft
monetary con-

102 in

index

1933

cut from

of 201

2; that

wages

index of 517
in

347

particular. Unlike most
soared

set in 1936 at
was

was

one

that

[The views

expressed

time when the

highly regarded

this

article do not necessarily at any
as

those of the author only.]

one

were

1.921

1933

mistaken.
I

Frank

these

results

achieved

wTere

interest rates
(my calculations) of 33% from a xr.
76-year average of 3.91% between
1844-1919, to an average of 4.8%
between 1920 and 1929 5; and that A-

charge
is completely
Cist

same

unemployment meanwhile, as said
in
PaPer o£ Dec- llth> rose
from an average percentage rate
of onl*v 4-5 for the 48 years ending
1907 during which the gold stand-

tack. Once he concedes the virtues

al(^

average of 12.6 for the years

—

sound",

increase

hard money.
But
after 25 years of effort he has
failed to get this country back on
the gold standard and what I am
urging is that he change his at-

goal

Keynes in

providing a rather
successful, makeshift, substitute
for gold in countries like England,
whose departure from gold was
vcry

largely accelerated and made

inevitable by our tariff and other

control,

in lull

was

1922-

1931. None of these figures supP01^ the view that it was British
inflation that caused British trou.bl®s£n his book, Will Dollars Save
the World? 5a Henry Hazlitt takes
much the same view as does
Greaves on all this. Speaking of
,

TTT.„

„

policies, he will then be in a better
position to attack Keynes' program as dangerous for permanent
use here at home.
This extremely the "dollar shortage," he says, "the
limited

endorsement

Keynes,

whether right or wrong, leaves me

real

trouble

Flirnnp

ar,j

and

Britain

that

AmPrifa

T pfin

wish

nnito
rvF
or.Fi
Euiope and .Latin America visn
quite innocent of "glorifying soft
to
buy more from the United
monetary concepts a la Keynes."
States than they sell to it > ■<■>„;■

The Blame for British Troubles
The

second

Greaves,

position
who

were

troubles.
to

Jr.,
that

British

for

British

"never refused

goods."

was

high wages and "policies

of credit

their

blame

Thus

British

buy

29|'Layton>

page

out of world markets."
many

influences cloud
J

statistics, I will try to present

sir Waller T. and crowther.

Geoffrey, An Introduction to the

Study of

Prices, Macmillan and Co., Ltd.,

London,

19^ P'c,f3p

expansion" which "priced

wares

Although
the

Continued

critic,
Percy
L.
takes the popular
1 Information
Please
Almanac,
1955,
it was the British The Macmillan Co., N.-Y. Pp. 295 and

0p!

266

dt. p. 245.

fiarfut,

Will

Dollars

the

Hudson,

122-Bound Volumes of the
COMMERCIAL

FINANCIAL

CHRONICLE

From
Jan. 1,

1929-Dec. 31, 195?

Available immediately in N. Y.
Write
Edwin L.

Phone

Save

World? The Foundation for Economic

Education,
Irvmgton
1926, p. 20.

"FOR SALE"

doubling

of productive facilities and
eventual profits and dividends
that may justify the present
Price- The accent here is on
growth to the exclusion of
m?st other conventional yardsticks.

dizzy heights^

1929, the C. & O. peak

road

suit will be nearly

1921

3; that de¬
posits rose by but a negligible
amount
from
£1,947,898,000 in
1921 to
£2,025,231,000 in 1933 4;

and

prices

1936,

This

have the

■

Keynes,

Hazlitt

....

criticisms, the

cepts a
Keynes."

postwar period which is rele¬

vant

been

now

the

...

and

Electronics the Bright Spot

Nevertheless this week the
stock soared above par again,

issue that sold more
than a dozen points
higher in The answer here is that the
1957.
Chesapeake &
Ohio company is expanding almost
demonstrated good control of furiously — new facilities toexpenses last year when it mine its gypsum deposits, new
an

rrUni

x„.\X. XX%'X-

operating rate that last spite indications "that their
The issue that doesn t seem*
week produced an all-time business has snapped back, to need the help of any divihigh steel turnout for the Baltimore & Ohio has stated dend payout is Best wall
to

issue

;

be done

can

were

passed a-tariff act in 1922 with
Chronicle carried comment by me average duties said to be over
of many of the market. corn- on three articles
by Henry Hazlitt 30% and another act in 1930 with
that, in
normally mentators. One that even sat on the theories of J. M. Keynes, average duties over 40% 1; in
+ho
1
the iincfiiroi' iaom/\/J
its

—

REctor 2-9570

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

Volume

189

Number

5830

The Commercial and Financial Chronicle

(1309)
and

A Business with

Real Future:

Group Executive Vice-President

Old and

the

electronic

range

important role of electronic tubes, and

At the risk of

appearing brash,

that

belief that the revolution

now

taking place in materials, devices
and

tech¬

niques

call

care

stantly

mponents
will
reshape
entire

reveal-^-yet
amazed

electronics in¬

our

in. the

from

one

few

what

new,

compo¬

-*-eur

mean

ing blocks
electronics

—

circuitry and

gear

products, systems
By revolution
I
fabulous, almost unbeliev-

services.

advances

that

are

upsetting

concepts
and
opening
vast new growth
possibilities for
the electronics business.
revolution has

been

gain-

ing force inconspicuously — or
relatively so
during the same
ten-year period that overall electronics, with dynamic force, has
—

surged

into

the

limelight

the

hasten
is

reassure

happening

ponents

that

you

the

com-

business

appears
to be
good indeed for the business

very
of

electronics

viding

it' with

whole—pro-

wider

latitudes,

greater

flexibility, broader horizons and, lest, we
forget, far better
money-mafciiig potentials.
My views will

and

Emergence

never

incredible material

that

has

its effects.

industrial

Contemplating

day

scientists

back

involved
The

The

swift

incident in which

people
was

RCA

■

asked how many sys-

was

terns

pany

certain

had.

tiny

transistor

n°wned as
the

became

soon

type his

com-

know,"

\he

mightly midget in

electronic

components

field

and marked the beginning of far
reaching changes in the entire art,
industry

and

science

itr^nics*.

Transistors

the

Chairman

glared.
You
don t know,
he fairly shouted,
"I thought you were the engineer
4%-%
4-V-*
"
in charge of these systems.'
Afn

r."fCtOTY\0

have

am.

been

But you

from
oratories for two days."
New

away

electronic

see,
our

sir,
lab-

systems,

new

electronic products and new electronic approaches have been com-

ing at

ork

fast in recent times

so
,

.«

*An

address
Soeietv

Hoffman makes it work for industry and the nation.

make Hoffman the most

(

by Mr. Watts before the
of Security Analysts, New

City, March 4, 1959."

progressive member in the fastest

growing industry in the world. Capability of the
facturer is

important

manu¬

the capability of the product

itself. Hoffman delivers both.

the

opened

for

way

of a whole new
Instruments and devices

A strong

forward-looking management,

outstanding

engineering team and experience in quality production of

n°i°gics

for

defense

and

com-

mcrce.

Coupled with other advances—waich I will discuss in a moment
semiconductors gave

big push

which

radio

for

had

years

television>

and

variety and complex nature have contributed to

Hoffman's sound growth—a balanced
duces the

graph makersgrowing

and

££2*

for

markets

electronics

requirements

our

the

semiconductor
.

enjoyment, industrial needs and for the defense of

nation.

Highly specialized experience in advanced engineering
research and
ture,

devices

places Hoffman in

electronics

the

transistors, diodes, rectifiers

and a. multitude of

developnient, plus
a

sound financial struc¬

position of leadership in the

„

industry.

active

new

materials, as well as the older
but still tremendously important
"Ul
^

T"11"1.11
are dynamic

electron tl,bes- These

keys to electronic action and
The

vices

''passive"
wide

a
as

con¬

components inof such de-

array

Huffman Electronics
COR

relays, switches, couplers,

RATIO

capacitors, resistors, transformers
and

fjp;ers
•.

together
-

with

"hard-

ware" items needed for mechanical or electrical interconnections

electronic

circuitry

and

gear.

These play a more or less static
role in circuits and systems.

Taken

together,

the

"active"

and the "passive" components are

accounting for mushrooming sales,
Consider the introduction of

lutionary

COITling

revo-

materials

new

now

.
,

con¬

for

trade 88
elude

pro¬

capability to deliver highly technical systems

products where and when they're needed... for

sumer

created

growth which

been

phono-

OVd the horizon and the
infinite applications they
promise

3761

SOUTH

with

the

micro¬

that v combines
of

uniform

Continued

*n advanced electronics, and hasnew tech-

The RCA scientist nodded

replied:

lighting.

concept
elements

semi¬

tened development of

elude

area

vital

elec-

kindred

and

fashioning

array of

replied

blandly.
The

in broad

re-

trol.

don't

vances

saving

Imagination for research plus the skills for production

try almost without fanfare, the

was

government
gc

i.rin.

com¬

This
advance
provides electronics with a: new
dimension—a revolutionary space-

Although it reached the mdus-

surge

hearing in wochinotrm ThoRCA
Washington. The RCA
witness

•'/;

products.

concept.

done previously only by electron

while back.

scene

achieved

module.

Capability is the keyword in electronics...and

brought

In utmost simplicity, there are
essentially two groups of compo-

electronic components field, I am
an

,r:

achieve¬

size

significant breakthrough has

Capability for Progress

Now, spurred by the computer,
sales and

Revolution

electricity. v'

A group known as luminescent
materials herald far-reaching ad¬

A
been

to the electronic components busi¬

Electronic Components

our

end

first.

memorable

when

tukes;

have

and

components of infinite variety.

one

ponents

for

miniaturization, the

tell

can

the

findin§ its main market in sales

profits.

reminded of

mate¬
powers

in an amazingly small
(1) convert electricity, ap¬
plied in one direction, to heat;
(2) convert electricity, applied in
the
opposite direction,: to cold;
and (3) convert, heat
directly to

ment, such

con¬

three main

SPp"seMapo,ential
The

new

useful

areas

space:

electronic components

technology into

radical reduction of

three,

new

will

1948

ness,

electronics
elecuonics

re volution,

these

already making their

complex

components
components

cover

areas:

The
I he

moment

conductors

industry in the United States.
I

among

■

functions

the

industry is a group that we call
ferrites, which possess magnetic

forth a Queer looking little device
called a transistor — with the
ability to do many of the things

fastest-growing and fifth largest

what

scene. *

this

exciting

perform

upheaval, almost continuously,

in all electronic

This

known

new
materials, and more
about to emerge from the

of
materials
thermoelectrics can be
group

the

competitor

since

Walter Watts

essential to

able

dominate

may

components
segment
of
electronics has been in a state

parts and
materials that

and

processing

are

laboratory, not only shatter older
concepts but provide the needed
ingredients for shifting the course
of

Another

by the new mate¬
into use—materials

The

the

mean

data

These
that

suddenly appear to
jog us—especially, I must add, if

the real build¬

are

business.

gadget

years.

nents, I

and

the experts find it more
difficult to stay abreast

dustry

tremendous
in the field of electronic

computers

speed of
progress and ingenuity of our in¬
dustry. ; ' : ,\v
This is particularly true of the
electronic components segment of

c o

soon"

felt in the

pre-,

maKe

happenings.
For my part, I
have been in this business for a
longer period than I sometimes

electronic

the

rials

„what 'we

even

and

I want to make clear at the outset

coming

Chief

Despite
806% overall increase in electronic components business in
past twelve years, he expects $2.8 billion sales in 1958 to be
exceeded by $3.4 billion in 1960; $4.2 billion in 1965; and
$4.9 billion in 1970.

■

shaken

which

data of estimated present and potential sales.

sents

advance

au¬

made

describing this, Mr.- Watts^ refers

opments and the

promise

machines.

rials

electronic components business at a terrific rate and the new
horizons for expansion appearing in almost every direction.
f The R.C.A. research official specifies some of the latest devel¬

effects.
Because
of
their
high
efficiency and light weight, these

thority as Dr. Elmer W. Engstrom,
RCA Senior Executive Vice-Pres¬
ident and head of our Research

being

widening

scope

Engineering efforts, the very
foundations of the industry are

City

new

to the

widening

opinion of such

companies in electronics must grasp and act on
the significance of changes taking place in order to last. In
V

and

By W. WALTER WATTS*
Corporation of America, New York

see

business that will
dwarf any of the estimates
of, say,
even five
years ago.

Dynamic Electronic Components
Radio

you

activity

HILL STREET, LOS ANGELES, CALIFORNIA

size

page:

The Commercial and Financial Chronicle

Thursday, March 19, 195

(1310)

Congress of World

Connecticut Brevities

;

From

Business Leaders to

Washington

;

Landers,

Frary & Clark
and Plume and

of New
Atwood

Meet in Washington

Ahead of the News

Bank and
Britain
have voted to
American business will be the
shares from 30,- Co., of Thomaston, for consolida¬
tion of certain operations. Land¬ host next month to the largest
By CARLISLE BARGERON
000 to 75,000 and split the stock
and most distinguished galaxy of
two-and-one-half for one.
The ers is a leading manufacturer of
business leaders ever to visit the
vacuum cleaners and small house¬
Republicans in Congress are
■;This is but one of many mis
bank
plans to pay an annual
United States.
- ■..
hold appliances. Plume & Atwood
dividend
of
$1
a
share on
passing around a memorandum takes that were made in dealin
produces brass and fabricates a More than
the increased stock.
This repre¬
recalling ? that President Eisen- with Russia. Roosevelt thought h
2,000 of them,
sents the same rate being paid on variety of brass products.
hower, the then Commander-in- understood Stalin and could g
:i:
$
$
from some 50
Chief
of the
along-with
him.
Truman-, re
presently outstanding shares.
countries, will
marked: "T like old Joe, we ca
A new organization, the Stuart
Stockholders will vote on the
Armed "'Forces
arrive in
in
Europe,
*,get along together.'';"/
proposal at a special meeting Shoe Manufacturing Co., Inc., of Washington,
Norwich has announced plans to
Notwithstanding
the
terribl
urged against April 15.
D. C., for the
£
t;.
$
begin the manufacture of popu¬
legacy that the v Democrats hav
dividing Ger17th biennial
lar price men's and boys' shoes/
Young and Seidell Company of
{left the voters in 1948, 1954 an
many ,i n to V
Congress of
1956
showed ; that; either > the
Baltimore, one of the East's larg¬ Personnel of the new organiza¬
zones; Had his
the Interna¬
didn't believe these mistakes ha
est manufacturers
of bank sta¬ tion have been engaged for many
.'adv.icQ .been,
Directors of the Bristol

Company

Trust

raise outstanding

■

years in various phases of shoe
manufacturing and production.
The firm expects to employ be¬
tween 175 and 200 persons by the

branch

will open a new

tionery,

plant in Hartford later this month.
The
Hartford
plant
will be
equipped with machinery espe¬
cially designed to produce, im¬

end of this year.

print and encode checks that can
be processed on equipment pur¬
chased by banks in connection
with their automation programs.
v

'1;

*5*

proved

'/j'i f r~

developer of the

Rotodyne, and as
such, Kaman will manage both
commercial and military sales. It
Is anticipated that the Rotodynes

65-65 passenger

man,

is planned.

Air
in

Exchange, will admit Aaron Cook *
to

Force.

The

Dockendorff

Company

Bridgeport has announced the de¬
velopment of a jack which will
pull as well as push or lift. Sold
under the trade name "Puljak,"
the new device was designed for
fence

installation

but

It has been reported that nego¬
are

being

partnership. Mr. Cook has been

conducted

attack

have

the .Federal Reserve System a
nounced March 9 thaL they a

seeking*further data with xnfor
tion in connection and
tec

Mr.

Europe"

took

"He

Silicon Transistors'

...
nical study of ....
the

Government £

nical study of the which they £
Government s
curities market
cunties market which they a
conducting jointly.
This fact

inquiry,- which is focusing *esp
'
cially, on . developments • in, t
market last summer, is the/o
Eisenhower in his t'Crusade growth of several prelim ina

f"
.

The United States Treasury

tells of a conference
Roosevelt in 1944.

to-brief • me

occasion

studies by the Treasury, the Fe
eral Reserve System, and int
ested market groups.. It.is hop

occupational plans for Ger-

^
tioni"g and t0 Preventing spec
Iative6excesses
the market
'

Haupt & Co., Ill Broadway,
New York City, members of the
New York Stock Exchange and
leading commodity exchanges, an¬

his

nounced that Fred Barton is

associated with their firm

now

Man¬

the

Commodity Depart¬
ment.
A veteran of 31 years' ex¬
perience in the general commodity
business, Mr. Barton was previ¬
ager

ously with Paine, Webber, Jack¬
son

in-

Bureau of Foreign
Commerce, the U. S. Department

censed by the

Effective
transistors

March

all

added

are

Positive List of

silicon
BFCs

Commodities^un-

der Schedule B No. 70848 and re¬

export licenses
all destinations

quire individual
shipment to

for

except Canada.

control of this
is
being

equipment

transferred

from

of State because

the

Department

of its increasing

Data

to civil authority. He seemed impressed but
did not commit himself."
It

will

recalled

^ recommending
of the
was

that

Secre-

that Germany

cultural state.
In

cess

sary.

was

expiration, BFC said.

Members New York Stock

CO.

Exchange

INECTICUT

Current
dated

are

published in BFC's

Export Bulletin No J 812,

Feb. 26,

1959.

,
■

^-,1

Cnarles Jrl. Drew

New Haven

New York—REctor 2-9377

7-2669

Teletype NH 194

the market.

designedcrossobtain the opinion
to section of benefit
broad

underlying
of

for

forces shaping p
the market andf

improving

mark

Roose- study will be completed and m
and public about midyear.
representative on : the
Commission that first
Two Wi*h La Hue

James

Winant,

velt's Ambassador to Britain,

American

Advisory

specific

agreement

should

made, and he replied that its only
effect would be to make the Rus-

sians
suspicious.
The
all-out¬
agreement covering Germany implied that there should be the

access,,
paid

and Russia would have

no more

attention to a specifW

(Special to The Financial Chronicle)

ST.

PAUL,

Minn. —David

Caldwell and Harry E. Strand.
now

with La Hue Investment

Pioneer-Endicott Arcadej

Percival W. Brooks
Percival W. Brooks passed av
March

the

age

91.

ic, agreement than it has to the ^1^ wag the founder of P>
of Charles H. Drew & Co., *New .general agreement.
,
.
Brooks & Co. of New York.
York City, passed away Feb. 24 at
All of this is, of course water
the age of 71 following a lon£ illover the dam but it is a com:
Uav^n QjnnA
ness.
Mr. Drew who had started
mentary on something that the
* vviui^n yaen, viu e
his career in the investment busiDemocrats
are
critical of the
Leon S. Herbert, Jr. is now
ness nearly sixty years ago estab^
Administration's handling of the Hayden, Stone & Co., 400 'P
lished his own firm in 1923.
Berlin situation.
Avenue, New York City.
Charles Henry Drew, proprietor

Hartford—JAckson

informed
functioning
The consultations
with

consultations

written means

SECURITIES

nancing of market transactions
There
also
will
be
infoi

guaranteeing free ac- mechanisms and functioning,
considered necesIt is expected that the jo

of State cov¬ planned the division of Germany,
the transistors was asked if he did not think a

remain valid until their date

Details

CHAS. W. SCRANTON

Berlin

by the Department

exports

requested

plete record pertaining to the::

formance

quarter

dividuals about the

completely reduced to an agn-

agreement

will

major lenders to, and participa
in, the Government securit
market, including banks, nonnancial corporations, dealers, a
brokers. These reports are '
tended to provide a more co

quicklyeaSs possible,

(Special to The Financial Chronicle)
industrial use. Formerly, the tran¬
in
BOSTON, Mass. — Martin J. sistors were primarily used
Mullin, Jr. is now affiliated with military equipment.
Josephthal &
Co), 19 Congress
All outstanding licenses issued

Street.

up'^®

announced.^toe

of Commerce

electronic

With Joseohthal Co.

ininf

now

.BFC said export

Curtis.

gj/

cAputt

ment

Ira

Primary Markets in ■'-*<;;

with, the

Securities Market

will

To Scrniinize Gov't

with President

ering

Exports Under Aegis of doaf^ClWrwanted tef no?Jhwest
definitely, wanted the_ northwest
the United States area
New Federal Agency ; ;
Barton Commodity Mgr.
^
S
transistors, formerly li¬
export by the Depart- ^
^riiA
For Ira Haupt & Co.
State,
will be li- ^J.ni.k+1-wt !hn?,ia

being

the machinery
maintenanc/e,
aircraft
mainte¬
nance and building industries.
used extensively in

tiations

JL\JX X

lliVAA

censed for
tcnftcu
lui

all

treasury and Reser

Silicon

also

only 430 pounds and develops
3,000 pounds of static thrust,
#

action"

been retired from public life.

picked to power the Lock1 heed Jetstar and McDonnell 119
aircraft in addition to Republic
and
Fairchild
drones,
weighs

t.-

"police

tinued

but

been

•

Atlantic City, sion, composed of British, iRusof the five: sian; and American representa-

at a meeting in

section

JT-12,

has

.....

years.

production

weeks

the European Advisory Comm is-

associated with the firm for many-,

been

recent

years

lion^companies.

Aaron Cook

selected to
power the North American J-39
Sabreliner,
a
twin
jet
utility
the

formed 40

members of the New York Stock

small, high performance
jet turbine engine produced
by the Pratt & Whitney Division
of United Aircraft Corp. of East

which

Korean

wars

is sians.

Congress

the

was

JT-12

curred under the Democrats.

the allied pow- fives, first planned the division of
ers of World War I.
Renresenta-^ Germany in 1944 in London,; Their
tive national committees, have Plans were confirmed at Yalta by
since been formed in 40 countries#^ Churchill, Roosevelt and Stalin,
Its membership presently includes 1*The following July and August
5 700
industrial, commercial«and at Potsdam, British Prime Minisfinancial corporations and firms ter Clement Atlee, President Truas well as 1,300 business and proman and Stalin agreed in more
fessionaL 'associations, the mem- specific detail about the division
clU indirect —
XX\X vwv V
—
„
bers of which form an
ofGermany . and , how ,; Berlin
constituency of more than a mil-: should be divided and governed,

The

into

Bargeroo

chief members of

No change in man¬

ordered

the countryso
This/ in spite of the fa

war.

of the business leaders

trainer

peop

Republicans

—

ago

t;.

has

Carlisle

firm, which produces miniature
precision parts for a variety of
industries, would be operated as a
wholly-owned subsidiary of

Hartford,

on se

the

that World Wars Land II and t

-President
E i sen ho we r

Challenge

"Today's

V Veeder-Root, Inc., of Hartford,
leading manufacturer of count¬
ing devices, has contracted to
purchase the Iseli Screw Machine
Co. of Terryville for an undis¬
closed
amount.
The Terryville

agement or operations

lin problem.

business
range

the first such gath-

theme

Commerce

Veedor-Root.

„

Ber-

in the United States since
1931.
It will be attended by the
heads of the major business associations throughout the world in-

participation.
'«}

that

ering

Admit Cook to Firm

of military

ordered and the extent

wide

issues, will be

the

less able to keep

to Business- >vt; But ; shortly , after
hostilties
men
Their
Responsibilities^ in ceased/- in, view of- the political
taken at Yal t a (by
HARTFORD, Conn.—On April 1 Domestic and World Affairs.'' This decision
Putnam
& Co., 6 Central Row, theme will be discussed in detail; Churchill, Roosevelt and -Stalin,
at the first general meetingV on V-Mr. Eisenhower says, _I was orthe opening day.
dered to retreat 125 miles.
. ;
The International Chamber- of: According to 7 Mr. -*Eisenhower,

the number

depending on

world

the

for

forgave

Poll has shown

occasions

believed

hence

Philip Cortney

policy po¬

community

eral

Germany, and

seek to estab¬

sitions

the Gallup

j.i been no East-;
Communist;

;.feOr

else

In the last two yea

Democrats.

have

would

York

New

the

to raise

The

C o n g r e s s.
which will

The

Airways will be
built in England by Fairey. Plans
call for future U. S. Rotodynes,
both commercial and military, to
be built in this country by Ka¬
for

proposal

lish

been,/made

.followed there.

Com¬

ber

merce.

has said .that,
The Republicans failed to ta
being overruled on this advice, he the
responsibility for the thr
then urged that the line between
the
Democrats. ;Th
Communist occupied Germany and didn't
The
company plans
to use the
try very hard. Every t!
eluding every country in Western the Western zone should be >set
proceeds to finance the purchase
they made any tsuch charges
The Chairman of the further east —m the Thuringia
of the eyeglass frame metal parts Europe.
.these, or any reference to it,St
Chamber's United States Council/; area, closer : to Poland and ]ust
division of the Whitaker-Fielding
"liberal" press and "liberal" co
Philip Cortney, reports - that north of Czechoslovakia. He recCompany of Providence, R. I.
"Overseas interest in the Congress ommended that line, he has said, mentators
showered f themwi
has been greater than in any busibecause he thought hrs forces such a/itorrent of abuseto that
took
pretty hardy soul
ness event in my experience.";could
get there before the Rus- the attack; The menj whorepe
Putman & Co. to
co

Bloomfield, recently
announced
that New York Airways will buy
five
to
15 Rotodyne vertical
take-off airliners. Kaman is sole
U. S. aircraft licensee and repre¬
sentative for The Fairey Aviation

Company, Ltd.,

capital from $1,250,000 to
$1,500,000.
Stockholders will be
offered rights to subscribe to ad¬
ditional shares on a basis which
will be determined at a later date.

firm's

Corporation,

Aircraft

Kaman

Stockholders of Rowland Prod¬
ucts of Kensington recently ap¬

Cham¬

tional

Volume

189

Number

5830

The Commercial and Financial Chronicle

(1311)
ii'.K.

HIGHLIGHTS
FINANCIAL

Per share

L
A

Number

ai•

dvi''

.-J

iq*>u="r
•{

\'1\

Eastern

>>>•:

Total world-wide

Eastern

$3,690,094.629 j 'j\

v.;

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

Petroleum product sales:
Western Hemisphere

V^ ^;90L000.000l

Av;.:: $4,001.526.969

Hemisphere

Total world-wide

■

514,534,733

2% stock dividend

;.!v

890,000.000

Total

*fIn addition,

Hemisphere

Refinery crude oil runs:
*
Western Hemisphere
..;....
;
Eastern Hemisphere...;...;..

per*day

Total world-wide

year.....

consolidated

.-v..

Barrels

•

Gross crude oil produced:
Western Hemisphere .i.;..............

out-

Capital and exploratory'
expenditures ....1..;.....;......" $
:»iH

$2,449,162,410.■»

/of;'»"v
rr:!2-';:

OPERATING

' $5.31

nies and subsidiaries not >>:/>

'J-

K&ii-

llO

J^310,167,8054;T $> 332,303,644""

........

Ofi'i .7 r:>

1957

7;;V*:f.I
^.3 58,388,074 ' { ; >^55,937,434»
Cash dividends
>7 $ >5
134,769,229,-$ 128,906,925- !Per share......
-: V- >
$2.35 -v> ;> >;\ \ > $2.35*
Total assets
$3,111,526,969
>$2,7894)94,629?,
Equity in total assets of>>>.. •> ■
;>>>>;-.■V'.V,',
■
nonsubsidiary compa-1 • ; - • '
*
•
•
>■4 '• >

iijs-'i-.tV,?'/.

standing-end of

|idrri>),
tsd

outstanding at

end of each
year

bl Vpy.

1958

..$$2,475,629,730

Net income

Jd Vr

'l\«.

Gross income

|*7:;

'-"Vr" 7v-'

■

teas

'"•'These, statistics include 100%
of the operations of

paid in

481,708.331;
1957. I:":-'.
:7

,'i'

bsidiury companies and theCoin pan/s equity inter¬

est

in the

«■ J,

operations of companies

o wned

50%

less.

tir-T
1

•»

li'VJ;

•

~'«J

snf?.-.-"

D,«U

•

CONSOLIDATED BALANCE SHEET-deoember

[tf

ASSETS

••

y&I

LIABILITIES AND STOCKHOLDERS'

■ «

1958
I;

mv»"'

Current Assets:

1957?

;

393,931,287

289,806,336

able.....

374,628,488

Reserves for Employes'
Flans •'•••••

39,606,196

944,094,299

Minority Interest

38,097,378

180.648,163

Stockholders' Equity:

Gross

171.252.856

Properties, Plant, and
Equipment*

1.873.935.133

Less
Depreciation, depletion, and amortization

J-k1

■.

;

^"^'V

1.599.537.399

n.' "f'

;

„

Par value of capital stock

74.266.910

$2,789,094:629

Retained

Total.......:

•

827,782,548
Vo TopTtT

tfvl.

treasury

1,500,391,62a

earnings.1
.L

Less—Lapitai stock field

$I,59aQ8o,2o7

$3,111.526,969 '

76,355.688

Charges
•

.Sl,u34,45.j.l <6

Deferred
{**'

■

...!

issued—shares $2o each
3,189,622:656

—

hi V"

3,708,388,309

279.599,475

$1,029,465,24-9

Investments and Advances...

348.090,313

;

314,283,555

■

Total

■*

•

1...

f Reclassified for comparative

CONSOLIDATED

INCOME

itq

^Zo,U%Ll5
: ;

44,432,176

$2,283,741,997
$3,111.526,969

•

'•

401,991,085

321.250.407

Inventories

hi.-. *m'

Long-Term Debt

Accounts and notes receiv-

1958

Current Liabilities

;

Cash and securities

[jo"

•

purposes

STATEMENT

•rv

1958

Gross Income:
Sales and services

;

Dividends, interest, and other income

$2,327,938,837

....

.....

7 147,690,893

•

....

$2,475,629,730
Deductions:

;

Costs, operating, selling, and general expenses"
Taxes (other than income)
Dry hole costs
Depreciation, depletion, and amortization
Interest

charges"

,766.602,778
'•. 74.909,704
34.185,442
•' 233,044,710

....

12.066.997

•.

Provision for income

Minority interest

taxes
....

income

11,300,000
3,352,294

$2:165,461,925
$

310,167,805

...CONSTANT
IN

OIL'S

PROGRESS

FIRST CENTURY

The Commercial and Financial Chronicle

•

Thursday, March 19, 1959

(1312)

i"-' ''"'/'KG,

"Y, 7%

,;;.W•,

f. 7:V.,

Implications of Agriculture for
Mortgage Lenders and Others

it
made
There is discontent in

profit or satisfaction that

the

ought to yield and may be
to

yield.

the

country,

—

must be

to $57,724)

expenses $14,647
—About held their

to $23,632.

There

the farmer's

busi¬

the integrator's package deal.

hear discussions of the

possibility
of national leasing firms extend¬
ing their services to farmers by
leasing to them machinery, even

buildings. Recently
ing

farm build¬
supplier pro¬

hardware

and

its

posed the formation of
acceptance corporation.

institutions

Lending
action

—

mine

the

gain for

personal

obtain

vertical integration in agriculture.
Credit is often one of the tools in

inaction

their

own

their

will deter¬

—

direction

farmers

and

supply firms

agricultural

the

go for
credit.
Effi¬

shorter-term

ciency considerations suggest more
direct merchandising of credit to

WANTED."'

farmer

Implications to Mortgage Lenders

Cash re¬

money:

pull

system's signals. I can
earn
more, contribute more in a
non-farm job. But when I seek to
change,
all
signs
read
'NOT

($29,-

ceipts $21,670 to $32,366; Cash

The

exist.

must

work

social

read

$103,928)
130

the

For

the individual farmer who says: "I

investment
($55,347 to

—Doubled capital per man

growth.

work, however, there
opportunity for those

released.

are

little

Expanded
capital
$50,000 per year

—Handled

other

hogs\raised;

371

160

work.

contribution

continuing
to

process

who

—More than doubled

You have heard much about

have

kinds

new

economic

103

56 to

for

nificent,

193 to 246 acres
their acreage of corn;

—Doubled

ness.

personal price they pay may
be high so that society may be
better off. This is farming: mag¬

five

land

tillable

released

are

important than price in the

race

The

per year;

acres

who

re-tool

slightly;

labor force

process,

Those

1.8 men

—Increased

agriculturalists and others dependent on
farming's health, are brought up to date on the implications
involved in growth adjustments occurring as a\ result of revo¬
lutionary changes in agriculture. Turning to other aspects of
technology and productivity increasing faster than population
expansion, the agricultural economist warns we need more,
not fewer, well-trained farm managers and, also, a sensible
approach to problem of assisting rural young people and dis¬
placed farm labor to re-tool for non-farm work—sans "not
wanted" signs. The professor refuses to agree that because
the existing public program is bad that all are bad. He praises
farmers for the tremendous adjustments already ixiade and sees
nothing wrong with subsidies—during this process—if it
fosters total growth and total welfare*
either

average

1.9 to

consumers.

however, requires
adjustment. People have to move.

300

—Decreased

Mortgage lenders,

"Farming does not yield

This

farms:

Purdue University

Department of Agriculture,
Lafayette, Ind.

Head of

the

about

all

standards of

comparisons on
well-managed, central
Indiana farms for 1948 and 1957.
In this decade of change, these
are

LOYVELL S. HARDIN*

industry makes for higher living

Why this situation? What goes
down on the farm?
Let's look at the record.
Here

rather

users

its

than

ex¬

tension: by a feed,

in their
earned return to their own la¬

"The

own

bor, management and capital—
Fluctuated
around
$9,000
to

greatest of all sciences is
of
choice."
says

building

middleman. To bankers,

financial

science

the

fertilizer, supply
firm
acting
as',: a

the business

potential is there—if

some

Philosopher Elton Trueblood.
Mortgage lenders, like all agri¬

alternative

easier

doesn't

financially

appear

more attrac¬

tive.
$10,000 level
culturists, face important choices!
automobiles— —Saw per capita income of per¬ in the scientific sixties. In this
(3) To render general or spe¬
around 285 million pounds
sons not in farms rise by more
situation, the razzle-dazzle, revo¬ cialized agricultural credit serv¬
More
than
enough
kilowatt
than one-third.
lutionary alternative is not likely ice at both the correspondent and
hours of electricity to serve the
Here we see acreage, intensity
to
be the choice that pays off. country banking levels.
rA\
cities of Chicago, Detroit, Balti¬ of crops, livestock density, capital
Emphasis will need to be placed
Our discussion of agriculture
more and Houston
and
physical productivity rising upon fundamentals.
in the 1960's clearly indicates that
Use of over $10.5 billion farm
rapidly.
Numbers of farms de¬
What are some of these choices? the
Supply firms servicing farms
mortgage credit and over $5 bil¬ crease.
Size of labor force per
(1) To encourage or discourage are becoming more highly spe¬
lion in non-real estate loans
farm changes little. Earnings con¬
cialized.
C o u n t r y
farm enlargement by your mort¬
and corre¬
Producing the goods and serv¬ stant at best. Why?
gage lending policy.
spondent banks are also agricul¬
ices purchased by farmers are an
Inside
farming, positive eco¬
tural supply firms. If they are to
estimated seven million workers.
The key tb, farm enlargement is "
nomic forces for social. progress
of encourage farm enlargement and
Working on farms at the peak are at work.
Through research, access to and accumulation
if
they are to service farmers
of the season are only about eight science and technology,
farmers capital. Some 40% of the sales of
million.
are
modifying and partially con¬ farm land in the midwest are for directly, then they, too, must be¬
come more specialized in services
And in the third dimension of
of farm enlargement.
trolling environmental forces. purposes
tires for six million

and in places,

d iscourage-

ment."

Spoke PresTheo¬

ident

Roose¬

dore

velt

special mes¬
sage to Con¬
gress just 50
ago.

years

agriculture, about 11 mil¬
assemble, process
and distribute farm products.

modern

Agriculture

troubled in¬

dustry.

Hardin

Lowell

Agri¬

culture

then,

thought by most peo¬

now, was

ple to be
farmers

primarily the concern ol
of rural America.

discussing the financing of
tomorrow's agriculture, we would
like to suggest:
In

(!) That modern agricultural
business—supply, production and
marketing—is
an
industry of
three dimensions.
Its health is a
matter of concern to all citizens,
^

just to farmers,

not

uted

In a
agriculture s

in the U. S.

nomic progress

measure,
troubles stem from the
large

business.

tural

each

For

fact that it
mighty contribu¬

are

for

put

the farm, two work
of agri¬
Yet in terms of capital

Biologically,

man,
made the

per

have

mals produce more.
meant

culture.

—just as
transport

the

one-third

and

non-

view

thus

total

the

agricultural industry in its three
dimensions, we see:
..7
„

That the financial welfare
agricultural supply businesses

(1)
of

and

farmers

closely

inter¬

twined.

to do the job

need fewer
job.
Within
farming, there isn't a need for as
many
people — since technology
and
labor
productivity are in¬
creasing more rapidly than pop¬
ulation is expanding.
This is the
why inside farming. This is the
push as we substitute capital for
labor

(2) That the modern farm man¬
ager's operation of necessity in¬
volves:
(a)
skillful purchasing
because
he no longer produces

need fewer pilots to
1,000 people across the
with
jets
than
with

aircraft.

the

farmers

parts of the industry.

When

is that

Atlantic

piston

the farm just as we sub¬

tion to

our

progress.

;

Modern
Of

the

Agriculture An Industry
Three Dimensions

Historically,

have thought
agriculture was

term

the

that

synonomous with farming. Using
this definition, we watch farmers

efficient, see fewer
and fewer farmers produce more
and more
food and fiber.
We

become

conclude that

agriculture is a de¬

clining industry.
The facts, however, are these.
Farming does employ fewer peo¬
It should. But since
Roosevelt's day, the

ple.
dore

Theo¬
basic

agricultural industry has broad¬
ened and specialized
into three
dimensions.
the farm

Behind

producer are

supply
industries of
which financial institutions are a
farm

the

These industries, businesses
annually sell to our farmers about

part.

services:

$17 billion of goods and

of fin¬
ished steel—more than is used for
Over

million

six

tons

year's output of passenger cars.
About 55 million tons of chem¬

successful

duce to market

just

must

farmer

produce

pro¬

specifications, not
and
leave
the

marketing to chance.
That

(3)

vironment

made

agri¬

this

en¬

competent fi¬

nancial advisor at his elbow!

Agriculture's
of

Process

Problems—Part
Economic

who

Those

Growth

ture

briefly

♦An

the

address

Midwestern

Farm Loan

rubber

raw

Prof.

make

Hardin before
Conference,

M—t«rage

Clinic, Chicago.

consumed

Pounds

per

person

change little.
This bidding pushes up or main¬
tains prices of labor, steel, petro¬
leum

interest

and

farmers

come

rates.

When

hire labor,

bor¬

production items up,

contributes

total

minds, increasing pro¬
ductivity, growth of the G.N.P.,
rising
living
standards
spell
our

progress.

How does this come about?

Are

progressing at a rate equal to
our
potential?
Should , we
be
content with a 3% average annual

row

rise in G.N.P. when

have

over

million

unemployed, 15 to
20% unused production capacity?

the

cost-price

squeeze.

real

values

Through this bidding,

the

con¬

is saying, "I'd like more of
other things than food. Use labor,

steel, chemicals to produce
non-food
Here
at

year

pressures

need to en¬

(1)

are:

per

reviewed.

upward

large individual units for produc¬
tion efficiency; (2) desire to hold
real

property

demands

upon

urbanization

inflation

our

land

and

for

area

development.

These, in our judgment, are con¬
tinuing pressures. Over any 10-

period, values of good land

year

which modern

technology

can

rise.
Of
course, we can't pay interest and
principle from appreciation alone.
Earning potential is also required.
be

used

likely

are

the in¬

Because the pressure on

dividual farm operator to enlarge

ways

and

we see

work.

services."
the economic forces

Within

farming a push
adopt technology, to substitute
capital for labor, to release people.
At the same time, fortunately, we
have the pull from

outside farm¬

ing of the wage premiums offered
by non-farm industries.
a

economic

people

"Few

process

is essential for

progress.

are

released

Generally as
from a pri¬

ular have not always shared fully
in the fruits of the progress to
which they
have so generously

mary

contributed.

efficiency of those in the primary

industry like food produc¬

tion to secondary
standards
rise.

industries, living
The

increased

use

have

our

which

banks

their

with

versant

correspondents

men

staffs

now
con¬

credit.

agricultural

be difficult for us at the

It would

upon

for

correspondents

our

extensive

effective

and

relation¬

ship."
Speaking to the operation of the

country
"I

Mr.

bank,

order

culture;

staff

man

added:

Black

that in
effectively serve agri¬
bank must have on its

thoroughly

believe

trained

men

agriculture. And I would add a
man capable
of becoming a bank
officer if he is not already one."
(4) To contribute to public un¬

small

corporations.

specialization in the provision of
capital; more tenant operation;
increased

ness

admire

normal and desirable. We

the

thrifty

character

farming

yesterday's

generation

which went through extreme per¬
sonal

achieve debtfree status. Such privation, how¬
privation

hardly be regarded as a
necessary
pattern
in
a
society
which
enjoys our higher living
standards of today;

ever, can

lems,

progress,

potential

and

agriculture's

weaken

further

strained public relations.
As

Theodore

out

years

content

read

would

the

Roosevelt

pointed

"There is dis¬
country, and in

ago,

discouragement."

places

;

the metropolitan press,
conclude

there

that

good in agriculture.
Consumers—and that includes all
that

little

among

wants.
no

agriculture's
food is

basically

us—are

friends.

know

that

the most basic of man's
Further, we know that in
has man previously

economy

produced

food

such

with such efficiency and
low

(2) To service agriculture's nonreal estate credit needs directly or
encourage
them to seek indirect
sources of financing.

plenty,

at such

real cost to consumers.

Problems of Adjustment

Change

Why then is agriculture's public
relations strained? Because leaders

scientific

the

sixties, those
profit
most
will

who

farmers

adopt new technologies before the
masses

so.

This

means

stantial increase in the $5

Such

said:

derstanding of agriculture's prob¬

lending needs. To this end,
will experiment with: families

President, People's National Bank,
Barre, Vermont and member of
the ABA Agricultural Commission

unrelenting,

gage
we

personal. Recently
Mr.
Black, Executive Vice-

will be found to meet mort¬

continuous

Frank

increasing present time to have to depend

the

(3)

and

hedge;

sumer

four

serv¬

cost of farm

the

it to look
process
of

Agriculture, and particularly
icals—the fertilizers, insecticides, farm production, has contributed
pesticides for scientifc farming
mightily to the economic progress
More crude petroleum than is we do enjoy.
It can contribute
used by any other single industry more. It could accelerate its con¬
—an estimated
18 million gallons tribution.
But farmers in partic¬
Enough

food services.

some

food

for

to¬

economic growth.
In

rising
bid

must go beyond

finance

The

land

75%

decade

the

their

and

higher level of mortgage indebted¬

and

almost

appreciate
during

saw

automobiles, travel, boats

With

—and

discussed

incomes, they
houses, tele¬

ices.
want

money, buy a tractor, truck,
lumber, fence or chemicals, they
bid against the consumers with
higher incomes.
This keeps the

help

morrow's agriculture must under¬
stand it.
To understand agricul¬

that

farmers

Indiana

above-average

part-owner dperation;
greater use of farm contracts. We
shall probably come to accept a

non-food items and

bid for

vision,

successful

the

businessman

cultural

of jet

land

corn-belt

1947-4.9,

values have risen over 60%. Those

stitute

more
capital in the form
aircraft for pilots in airline
transportation.
(3)
That
further substantial
At the same time, forces out¬
progress is within our reach . . .
his inputs, he buys them; .(b) ef¬
side farming exert a pull on peo¬
if individuals and institutions in¬
ficient production because scien¬
volved
in financing agriculture
ple
to
move
from farming
to
tific
farming
remains
highly something else. Consumers in a
can continue to help increase the
and
(c)
planned wealthy economy with rising in¬
resources with which
each agri¬ competitive;
marketing
because
increasingly comes and standards of living
culturist works.

has made such a

Since

land

output per man.

The result, of course,
need fewer farmers

requirement, about two-thirds of
the capital is invested at the farm

ani¬
This, too, has
acres,

same

in the non-farm segments

farm

they

acres, more

per man. Mechanization,
automation here means more out¬

employed in

level

force

labor

same

animals

person

That farming has contrib¬
mightily to the total eco¬

(2)

Thus, out of 68 million people
employed in the U. S. about 26
million work somewhere in these
three dimensions of total agricul¬

the

caring

With

workers

lion

then, as now,
was viewed as

sub¬

million

in institutional non-estate loans to
farmers.
extend

Commercial

banks

now

billion of this
$5 billion total. Production credit
associations, however, are increas¬
ing
their
participation in
this
area.
Further, the growing agri¬
cultural
supply industry has a
real
stake
in making old
farm
over

$3.5

practices
obsolete. Increasingly,
competition
among
agricultural
supply firms is emphasizing nonprice items. Service — including
credit extension by non-financial
institutions—

times

becomes

and

the

culture

public press accuse agri¬
seeking something for

nothing, of accepting subsidies, of
voting to restrict production, of
accepting direct payment for food
in the market place and for get¬
ting paid again via taxation.
To

considerable

accusations
is neither

are

true.

logical

nor

degree, these

However, it

fair to jump

to the conclusion that because one

public program doesn't work, all
public programs are bad. Nor is it
in the interest of any economy to
turn

against group; be it
against farmer or man¬

group

consumer

agement against labor.

Agriculture's problem centers in
pains of economic growth,

the

Volume

189

Number

5830

The Commercial and Financial Chronicle

change. Without change

stag¬

11,100

nate

want

from

deteriorate.

change.

shares
the

stock

(apart
by

common

Opens Investment Office

owned

change we must
adjust. To adjust is painful — if

Waste

adjustment
involves
shifts
and
insecurities. Yet farm people have
been doing this
amazingly well.
Farm employment decreased one-

Co.; H. M. Byllesby & business from offices
Co., Inc.; Crowell, Weedon & Co.; Road.
Cruttenden, Podesta & Co;
Dempsey-Tegeler & Co.; William

fifth from

get

1950 to

1958.

Throughout the history of
dynamic

economy

our

have

en¬

couraged change; we have fostered
equality of opportunity. We have
not

Other
Bache

Loewi

Co.;

underwriters

include:

DIX, N. J. —Lillian C.
Wegard is conducting a securities

Co.

The

Flint

First New England Sees.
SOUTHBRIDGE, Mass.—Walter

dan
is
engaging in a securities
business from offices at 970 West

curities

Terrace.

Pearson

320

Eric J. Gavel, Sr. Opens

Co.; J. Barth & Co.;

Opens

HIALEAH, Fla.—James D. Jor¬

53rd

Staats

J. D. Jordan

FORT

King).

F. C.

Thomas, Inc.

engaging in

business

Main

from

Milwaukee

Co.;

England Secu¬

Washington Road.

East State Street.

Inc.

hobbled, weakened of shackled

the

strong,

leaders.

the

setters,

pace

Rather

have

strengthen and educate
the

less

strong

less

the

tried
and

help

fortunate.

Society has lowered the human
cost of change, displacement.
This is our policy challenge in
agriculture. Because farming is a
progressive * contributor
to
eco¬

AMERICAN

nomic

growth, it has growth prob¬
Our principle says, lower
the human cost of change; don't

lems,

INVESTMENT

retain the status quo and
stagnate.
We need more, not

fewer, welltrained, top-level farm managers
in the

future. At

need

the

help rural people to
provide

change jobs. We need to
rural young people with
knowledge that they
most
promising
their

life

training,

choose
alternatives

may

the
for

COMPANY

time,

same

work.

Far

young men and women will con¬
tinue
to
be
born
into
farming

-than

can

earn an

acceptable living-

there.
hi

You,

responsible

your

tion of

public leadership,
-non-agricultural
people
stand

the

fundamental

this problem.

the

see

You

have

consumers

and

agriculture and

nature

made

the

help

under¬
of

help them
gains
that

can

tremendous

standards

posi¬

can

debt

living

owe

economic sys¬

our

tem. You know that public assist¬
ance—

yes, even subsidy — is not
necessarily bad—if it contributes
to

total

growth

and

total

welfare than it costs. In short, you

help to bring

can

of order out of

semblance

some

confused pub¬

our

lic

understanding of agriculture.
Yes, you can help ease agricul¬
ture's
to

strained

the

credit

the

and

public
of

relations—

profession

your

advancement

the

American economy.
y,-y//y/^yyyy//y////yyyy.\

Waste

King 6% Gonv.

;/"#

y/s

/',

"///''

Pfd. Stock Offered
An

underwriting
Straus, Blosser

headed

group

& McDowell
today is publicly offering 100,000
shares of Waste King Corp. series
C 6%
ferred

cumulative convertible pre¬
stock
at par
($17.50 per

We have just opened our 500th

subsidiary office—at

projected

Oceanside, California.This is

increase of 200 offices

mations, could triple

during the past five

years.

offices and extended

our

share)
'

Until

will

March

value
share

31,

share.

rate

for

common

the stock

into

at the

common

ferred

1964

convertible

par

Conversion

proceeds

will

rights

used

reimburse funds used in purchas¬

ing control of Cribben

Co., for

Sexton

i Waste

King,

Los

domestic and

appliances,
shares

other
kitchen

acquiring
the

dis¬

and

commercial

Cribben

common

Angeles

garbage

dishwashers

posers,

our

182,000

and

basis

shares of Cribben and

Currently

suburban shopping

Sexton
of

we are

of homes and

and

developments.

shift to the suburbs has

operating

our

offices in

The population

brought increased ownership

automobiles, the do-it-yourself trend

appliances and furnishings—factors which create

expanding need for cash installment loans. Today's
credit

are

as a

family for¬

10 years.

improvements and additions, greater demand for

families

new

loan volume in the next

operations to Mississippi,
HIGHLIGHTS
Report to Stockholders
1958

■

Gross

1957

$ 51,771,188

$ 51,343,028

Net Income

Volume of Business.....

$341,592,711

$349,538,224

Loans

$227,462,632

$224,401,399

Earnings

Outstanding......

Earnings

per

6,348,924

7,211,754

Common

Share..

$1.20

Dividends per
Share

Common
$1.00

also giving wider acceptance to consumer

way

of life. These trends, together with the

two

Sexton for

Waste

King share $12.50 cash..
Cribben and Sexton, whose head¬
quarters are in Chicago, makes
one

our

illustration shows, we are "moving with our

customers," locating

augment working capital.

manufacture^

added 32

in population and

From the Annual

product lines and to

new

During 1958

surge

in 37 states.

pre¬

terminate March 31, 1969.
Net

New Mexico and Idaho.

of .795

each

household

ing

and

commercial

equipment,

A copy

our

upon

annual report is available
request. Write to

Public Relations Department,

cook¬

household
heaters.

American Investment

dish¬

washers and space

8251

Company,

Maryland Ave., St. Louis 24, Missouri

Pro forma combined sales of the

two

companies in eight months
ended Nov. 30, 1958; were $21,005,819 and pro forma net earn¬
ings were $516,602. Following the
financing, capitalization of Waste
King will comprise the 100,000
shares

stock

and

Sexton

new

Series

450,788

common.

AMERICAN

outstanding
Cribben

capitalization

will

our

principal subsidiaries

$134,600 41/&% first mortgage loan,
40,000 shares of 4%'% $25 par
cumulative preferred
stock
and

ILLINOIS

Maryland Avenue, St. Louis 24, Missouri

Making loans to millions of American families through

and

INVESTMENT COMPANY

8251

preferred

PUBLIC

SAYREVILLE, N J.—Eric J.
OLEAN, N. Y.—F. C. Thomas, rities Co. Mr. Pearson was for¬
Gavel, Sr. is conducting a securi¬ Inc., is engaging in a securities
and ties business from offices
at 22 business
from offices at 416-28 merly with Charles A; Day & Co.,

Inc.; McCormick &

Schwabacher & Co.

se¬

Street, under the firm

of First New

name

offices

FINANCE CORPORATION

•

PUBLIC

LOAN CORPORATION

•

DOMESTIC FINANCE CORPORATION

GENERAL PUBLIC LOAN CORPORATION AND COMMERCE LOAN COMPANY

The Commercial and Financial Chronicle

<13141 1

Thursday, March 19, 1959

vu til.

cashire

Should the British Government

stood

Computers?

By PAUL EINZIG

industry of Lan¬
to

gain

Continued

afford

longer

can

behavior

recent trade

our

prescience of

champion the old principles.

Ail

.fid
,

■

American

experience? In raising this point, Dr. Einzig advises
retaliate even to the limited extent of imitating our example of discouraging purchase of foreign goods by
government departments and other official bodies — such as
having the British War Department cancel its recent order for
an American electronic computer.
He praises Britain's rever¬
sion to free trade which is said to tax the limits of her reduced
British

has

protectionism
the United

that

dence

To Achieve .^Balanced Growth
bank competitors.

instalment credit and new extenBeyond doubt it is an
sions does not show extreme conof weakness and lack of self-con- centration
in
periods
of rising
fidence. During the early postwar
economic activity and a drying up
years the United States assumed the of instalment credit in depressed
leadership of the free trade move- times. But we should not minment,
leadership that was re- imize the importance of the fluemeans; admits our action weakens the argument against not
luctantly relinquished by Britain, tuations that do exist. An upward
trading with USSR; and declares, if our action is due to
Evidently, however, in the: case or downward shift in instalment
of the United States the crusading ^ financing
our economic declines, it is the duty of the free world to put
and durable spending
spirit of free trade was not deeply 0f $3- or $4-billion annually is
up with our policy until we ^recover -our economic power—
rooted. A relatively slight decline
likely to exert
important secproviding we have lost it.
from the postwar peak of eco- ondary : effects
on
income
and
nomie power—slight in compari- additional consumption spending,
LONDON, Ena.—There is a real goods
produced by firms who uuimt puwCl-wi6Ln u.
aaauionai consumijuon sijenumg/
decline,
indication

trade

United

war

will de--*■

—

be devised
which would be somewhat effec-

ernment
example

chase of

number

measu

and other
this point
view the War Office is subject
some criticism for having just

foreshadowed

United

the

order for an American
electronic computer.
placed

the

States

From

bodies.

official

cumulative ef¬

Weakens

growing

British

ish
Paul Einzig

Dr.

United

States, at a moment when
business
conditions
in
Britain
leave much
to be desired, and
when British opinion is obsessed
of

fears

increase

further

In unemployment. Resentment of
the new American policy is all
the

countries.

re¬

who

are

highly

seems

now

probable that, in order to facilitate the increase of British exports to the USSR, very substantial credits will be arranged
under the official Export Credits
ments

Our

scheme.

Guarantee

against

such

argu-

move—

apart from other considerations would be most untimely
which

during
recent
years
British policy has made
considerable progress towards
non-discrimination against American goods.
The recent return to
convertibility was a most impor¬
tant step in the direction of free
trade, and it is—or at any rate
was
until quite recently — the

of British
goods. After all, it is said, if the
United States refuse to buy Brit¬
ish
and
Commonwealth
goods,

British Government's intention to

those

stronger

the

remove

the

remaining restrictions

import of dollar goods

as practicable.
Addressing the American Cham¬

soon

ber

Commerce

March

London

11, the President of the
Trade, Sir David Eccles,

Board of

during

period of growing ten-

over

lose

much

force in face
America* resist-

the

import

have

goods

their

evidence

ancc

bound

Berlin—are

sion

the

sold

and

the results in the fields, of _
mortgage lending, consumer
stalment credit, and to a lesser
extent in other segments of our
economy. In retrospect it is not T;

American

which

power
uneasy
uneasy

actual
much

the

that

re-

the

who

overlook is that

commercial

direction

economic

stances

titude
the

the

nationalism.

Greers

getting

the

rejection

contract;

the
for

adverse, vote

the Decca

zinc

against
system; the

air control

lead

and

fected

Montreal

Ferry

used

In-

American at¬

new

included

methods

policy
protectionism

vital

which

quotas

.interest

af¬

Canada

and

Australia; and various other
pointing in the same
direction.
Growing pressure on
instances
the

Administration -to -reinforce
-

existing

legislation

exclude

British

order

woolen

textile

goods is viewed with much
cern

con-

London.

concession
'■ /»n V\

ican

out

n/lklM

machine

favor of the Amer4AA1

tool

insisting on
highly

seems

sooner

sistible

industry with
any reciprocity.

probable
that
later there will be irre¬

pressure

Government
measures

i 11.

the

British

retaliate

reversal

such

its

policy of liberalization of import

understanding

degiee

with

some

f"e
the

that

rejection

f
:.
;;
athere anything abput the na;ture. of the instalment lending
decline process or of the traditional tools

s.trong
that

§tate
S

to nroduce
10 pioaucc

But

a
a

much
mucn

the

19th

Century

Britain

pronounced
as
to justify ".a
Change m economic policy
this would be a major disaster

so'

the'free

world.

Should

ment

world
alize

that

the

between

But
wars

Britain
she

came

^e^enLToiAmL^efoi^nit
wean.
.go America,
coo.uc

crease^ or

of Britain and

Even

power

cratic
the

then it would be the duly
of all other demo-

countries

put

;

with

of. American

consequences

could

no
longerthe rich man's
policy of unfettered free trade.v
During the postwar period, too,

afford

pursue

bc,

mucb

before
before

m0re

the

such
such
*

an
an

atlilnde..could
attitude ernilri

hp
be

evident to

,
for

said

cannot

•

fiscala

nmch cannot be said tor fiscal
In this field, we again

policy.

unwillingness

interest demonstrated our unwillingness;,
not. to support fiscal-policies which;

purchase

designed to be countercyclical

are

2% point increase in ; rates will
amount; to only a few dollars a

in character. In other

words, go

ih',

expenditures expand
good times as well as bad. % ;
ernment

/'gj

since the...
Federal Reserve Board submitted.It

two

now

years

its monumental,six-volume
to

Council

the

report.,

Economic

Ad--;

have

those. who

„

•••*

■

of retaliation

,,f

—

jneet stif'fer credit checks.

wpuld further accentuate pressure
for

special peacetime authority

practice,

maturity

New

that

school of
was
going

growing

Britain

liberalization,

beyond

what the country could afford in
Jl 1A.1

The extent to which

towards

free

reversal

Lancashire,

district.

country's
trade
is

of the

Britain's

Manchester

scene

Thursday,

19 at the Bankers Club

Cook,

liable to be affected by economic
conditions
is
indicated
by
the

complete

prevailing conditions.

attitude,

Standard

York

attitude
textile

was

the

of many important

change of attitude of Lancashire
commercial

policy.

Bond

Spencer
Club

nounced.

will be

Trask

-President,

Mr.

for

credit

^ ,
unstabilized

.. ^
tentially

credit de-r

velopments are restrained by thc^
use of general monetary meas?,.
ures,

and the application of sound

March

Harold H.

Co.,

has

an¬

Rathbone's

topic
"Today's Oil Picture."

Fidelity Management Co.

public and private fiscal policies.",

vanced stages of economic booms.

Hear M. J. Rathbone

tion

was

terms.

to regulate consumer instalment
credit is not now advisable. The^
Board feels that the broad public*
interest is better served if ,po- >

standards, it's well; known that
the
quality
of credit extended
tends to deteriorate
during ad¬

N. Y.Bond Glubto

top fast and too far in the direc-

and inflationary*

were

not],
ficient.to postpone op downgrade
read it,. I commend it for study ^
a<car purchase. Increased required
down-payments -«or
more
rigid;-As you know,„ .the Board of Gov?
Lu-tail
credit standards wilF-eurtail in- ernors reported to th,e Senate and

evident, however.,

Rathbone, President of
Oil
Company
(New
Jersey), will speak at a luncheon
meeting of The Bond Club of

there

towards

in-

Pl,obabl

car

new

2%,

decrease

rates maMer much,

not. aavance -as

aict

somewhat belatedly in ail
to temper the boom. t.SoV

visers.

two

to <re-3

Hall, the

import of

credit.> Will

ducers.

commemorated by the Free Trade

empowering

ban the

willingness to
puchases through instal-

consumci

finance

aavance

^arn^^g^
effort

affect

there

Pro¬

as
advance ft as

not.

as wages

pressures

terrS wiU;'«»ough

basic

for

rapidly

the extent that it does exist. First

really

did

cmcuyity.

+hp rlpstahilizincr effect

■

If thend™were

and

ductivity

of monetary policy that may ofl-

more
more

distributors.

facturers

uovernment

during periods of
protectionism
in
the buoyant economic activity, instalcould easily afford to preach an ]
United estates. It would also dam-* ment lenders
may pass on higher
practice. free trade. Conscious of
,age Anglo-American relations at
interest costs associated with tight
her
economic
strength, \ she did a moment when-the maintenance
_
.
..
.
.
.....
money.
But there has been little
not feel the need for taking artiof a united front is of paramount
recent
tendency for lenders to
ficial
steps to reserve the do¬
importance. V
tighten up on down-payment and
mestic
market for
British
pro¬
During

free trade meetings. It was suggested recently that this building
sh°uld be re-named "Protection
Ha«." because of the complete

nBdtain"

han

self-assured countries -Any British action

afford to be free-traders.

can

tenders

•

and

+nVer<i conflde^ab1/ lower
W
American
^7 inirnHMoil1S S0I?e tal^a.b°Vt
mLw Bill
0f 3 Priv?;e
Members
r

outflow

British

War

World

post

exaggeration is;

relatively moderate

is liable
is naDic

against

tne

the

nprjnri
.

the

p2?r
-m r?e
.States- birthplace of the 19th Century
peelingparticularly circles in Lon- free trade movement which is
in political
aon is
strong
,

sive

....

viewed

thought

Quite recently the Government
was criticized for having made a

reached their peak in late 1956
early 1957 included in succes-f
waves
housing,
consumer;
durables, unprecedentedly heavy ',
expenditures for plant and equips %
ment
expansion, and a general
expansion of inventories by manu-f
or

serious

basic American characteristic and

crease^

American

The expansion phases of
/.
most recent business cycle which

though, in

This has not been

problem
TT

views

the

ment administrators still look' to
the future without omniscience.

loans.

noteworthy--decline <made to
prevail.
of the-economic strength of jthe
It is to be hooed that: notwithUnited
States
through
the

mav

process

responding to and meeting this
demand, instalment lenders have
beeil
guilty of making unsound

facts.

such

made .some outspoken remarks on
the subject of the recent change

and

It's not

consumers.

economic

known

hold

this

facilitate

by merely responding to the demand
for
borrowed
funds
by

substantial than would

from

What those

results of

Instalment lenders

has declined. There is an
feeling that the decline,
ieeunb
max me aeciine,
or
prospective, must be

appear

instalment

the

really

are

durables

It is felt on this

Atlantic

their 5
If this were possi-°
ble, the process of self-correction^'
would certainly be more effective V
than it proves to be in practice.;*
For the time being, it seems thatif
borrowers, lenders, and govern^*concurrently with

even

development.

may

protectionism in the hopevthat in 'month. 'On the other hand, shortdoing so they would assist .the-ening the maximum maturity on
It is difficult to make British
V, United States in recovering their : an auto loan from 36 to 24 months
opinion understand that this new
iosi economic power. The Visible will nraise ' monthly,
charges by
wave
of American protectionism
sio-ns 0f decline would>have
to^Hifose to 50% and may; be suf-

light

seen

someone!

ought

in various segments of our economy. At various times, we have

volatile demand for consumer

present change of

protectionism is not
by the known extent

warranted

of Brit¬

Britain

the

American policy.

opposed to an expansion of Brit¬
ish
trade
with
the
Communist

Press.

They all aim at restricting British
or Commonwealth exports to the

with

opinion may find it difficult to

understand

hands of

the

weakens

lending

from

times

arise

British

reason

that

results

Undesirable

indeed even beyond
this

For

version

American

all.

this

goods

those

the

and

Nor

circles

British

them.

side

USSR

Against

Ban

sistance to the admission

politi¬

and busi¬

cal

ness

duced means,

Trade

feeling of re¬
sentment in

^ '

influencing the direction or.:
-"7
degree of economic gr<
_
fit

tive

Some Undesirable Results

trying hard to revert to free

trade within the limits of her re¬

fect of which

been

departments

ernment

taken

were

could

—

•

recent months
a

selective;]10

deny that

can

controls

such

States

Britain.

-•

discrimination son with Britain's decline from At-times, the total effect of such impossible to point out certain
its 19th Century peak oito reverse shifts has probably had a sig- excesses in vanous segments >of .
economic
nnwpr
is sufficient
nifioant
inflationary
or
defla- our economy in a particular busir "
nificant
inflationary
or
defla¬
Paw(;r
isysumcient
ness
cycle. But it is not always
tionary effect on the economy as
to imitate the American the American attitude.
possible to identify the excesses
a
whole.
by discouraging the purBritain on the other hand in
in particular segments in advance *r;
American goods by Gov- spite of her many difficulties has

benefit

future between ..against British tenders. Pressure
i
and
Great is brought to bear on the Gov-

near
.

the

one

credit

velop in the

Credit Controls

Selective

danger that

3W'
i

profitable of bank lending activity
and vacating the field for nop-^

made a new car less of a so-cailed
"prestige symbol." An examination of statistics on outstanding

too

Britain

the path of economic

'i hi «•'

evi-

States

come

now

quarters in Britain are
inclined to regard the revival,of

his country not to

b£ti

•">

•

Are We Following Britain's Path?

fate paralleling

page

Many

from

free

1959 it stands to lose by

trade. In
it.

Purchase U.S. El'c*"c

textile

the

1919

the subject
of stand-by control authority with
respect to consumer instalment
credit
is
again the subject of

Lenders

actually
standards
level

nL
much

when

demand

may

credit

and

the

activity are at
levels.
Monetary

low

probably

/\4T A/l4
effect

discouraging)
at

tougher

economic

relatively
VY11 1

instalment credit

require

those

does

not

have
/

AAAAItV^n Al V% /V

encouraging (or
instalment lending

times

when

monetary

policy seeks to encourage (or dis¬
courage) lending and spending in
general.
During periods of tight money

Here's the Rub
As

active
and

all

discussion

various

commissions
flation

and

monetary
that

the

referred

in the

the

and

with

effectiveness

You

policy.
"the

Congress

institutions

concerned

Board

know,

its

use

in¬
of

will note
statement

general

monetary measures and the gp-;
plication of sound public and pri¬
vate fiscal policies."
Here's the
rub.
If we continue to be unable

when bank reserves are limited, or unwilling to face up to the
Management Company has been banks may have to sell securities hazards of unsound public and
formed with offices at 5001 West in order to meet customer loan private fiscal policies in our ef¬
Broad Street to engage in a secu- demand, and banks may have to
forts
to
restrain inflation, then
rities business. Officers are Har- turn down some loans or else to
we do indeed face renewed efforts
old J. Richards, President; Rich- pare down borrower requests,
ard H* Guilford, Vice-President Some banks may limit their in- to expand various types of credit
and Treasurer; and George J. Sol- stalment lending at such times — controls _ DerhaDS not only with
omon. Secretary .'Mr. SolSmon was possibly by imposing more rigid
formerly an officer of First Lewis credit standards. But this gen- respect to instalment credits, but
Corp.
^
erally means foregoing the most also in other directions as well:
RICHMOND,

Va.—Fidelity

contr°Is

PerbaPa

on y^vvitn

Volume

189

Number 5830

The Commercial and Financial Chronicle

■MM
W9m

Now you can

color—a
to you

have

major

new

modern building in beautiful factory-applied
advance in pre-engineered buildings brought

by National Steel through its Stran-Steel Division.

Now for that

new

store, manufacturing plant,

warehouse

insulated buildings that cost less

buildings that

are

to heat or cool.

Pre-engineered buildings in factory-applied colors*

farm

the

many

Handsome

low in first cost, low in maintenance, too.
are

continuing advances that National Steel

typical of

brings to

structure, you can select a fine

building made of steel, with the

American

special elegance of

lustrous Stran-Satin colors: blue,

Steel Corporation, Weirton Steel Company, Stran-Steel Corpora¬
tion, Enamelstrip Corporation, The Hanna Furnace Corporation,

green, rose,

one or more

bronze, white or gray.

and
main¬

Yes, National adds the magic of color to the many features
functions that have already made

stay of commerce,

Stran-Steel buildings a

industry and agriculture. For here are easily

industry through its six major divisions: Great Lakes

National Steel Products

*For

Company.

descriptive literature, write

Stran-Steel

Corporation, Detroit 29, Michigan.

NATIONAL STEEL CORPORATION, GRANT BUILDING,

PITTSBURGH, PA.

NATIONAL
y.

STEEL

The Commercial and Financial Chronicle
24

Thursday, March 19, 1959

(1316)

moment what a Continued from page 17
might grow from
an exchange of TV time between
the United States and Russia. One
half-hour a week to be given free
on
an
American TV network in
exchange for one half-hour in the
Russian TV home. But regardless
of whether or not there are any
for

imagine

Blight Future Ahead lor
The Appliance Industry

A Business with

President, Admiral Corporation, Chicago, 111.

Siragusa takes

Mr*

vinced that the industry is

this year decided gains in stereophonic,
radio sales, and a market for six million

better

are

entering

t rib ution

this

make

coming year
chal¬

one

lenge and op¬

portunity

this

has

When

screens

combining

what they

of America?

expect. Recent surveys

barely begun
to understand the great power for
good, lying relatively dormant in
the
magic
of
television.
Just

arisen
few

But

months.

ample,
this
year
stereophonic high
fidelity will

Experimental circuits, including
assemblies,
wiring
and
elements, have been compressed
into
micromodules
no
bigger than a cough drop.
•
Excellent progress also is being

intent-to-buy

Recent

Offering of $12,500,000 Bonds

and sales

own

made

what

known

are

circuits"-— those/ boards j the communications^'£timing arid,
wiring for an elec- • telemetering- systems- which retric circuit is permanently etched cord* flight data- in a single- test
or stamped.
We call ours "secu- more than 100,000 tubes are used
rity sealed circuits," since they on the Canaveral range, headare almost completely impervious
quarters of America's biggest ef-

/'printed

its

into

come

present

other

must be converted into sales.

Government of Jamaica Receives Proceeds of

little

entire

ex¬

all.

cases

bulk.

the past

during

some

one-thousandth—their

good year to make major

steadily

—and

purchases. This intent-to-buy has

I believe we have

nental ballistic missile blasts off
from the Air Force Missile Test
Center at Cape Canaveral, Fla.,
scores of electron tubes pulse inside the giant "bird;" controlling
its flight and sending its messages
back to earth. Thousands of other
tubes glow on the ground at the
base, and on island watchingposts that stretch 5,000 miles into
the Atlantic.
;
'>'
C
'
'
Radar
tubes Help
track the
flight.
Other types are vital to

many

consumer's intent-to-buy
believe this year

the

Let me begin by reminding you
every
time an* inter-conti-

that

con-

existing techniques in
miniaturization, we can reduce
military items to one-tenth

little better than

micromodule

our

with

cept

that

role

electron tubes continue to play
in the components business and in
electronics as a whole, despite
the growing performance of semiconductors.

We in RCA have found that by

are

important

enormously

electronic circuit design.

appliance in¬
bright indeed

reveal that they

to the will be

excitement brought groups
television

sort

and

—

into

one
simple unit,
module, can be built
an
amplifier, oscillator, filter and the like, in aggregate, to meet the specified needs

for

For

want

Uuii, or

to function

ready to give
Mr. and Mrs. America what they

the television set to witness
drama.

very

who

those

for

pro¬

Groups gathered in front of
living

in pie.

era

a new

industry. New
products, new markets and radi¬
cally changing patterns of dis-

looks

dustry

of it."

gramming without ''buckets of commercials on top
the history of our

The future of the

shape

Xnis

Bright Future

freezer and transistor
TV units* The indus¬

trialist beseeches TV broadcasters to offer much

and

programming,
the
prospects for TV sales are
only as limited as the imagination.
exciting changes in

short look back and a long look ahead* Con¬
entering a new era, he predicts for

Real Future

Dynamic Electronic Components

By ROSS D. SIRAGUSA, SR.
*

Now that his firm has celebrated its 25th anniversary,

for peace

force

which the

to the environmental stresses that

will

skyrock¬
In freezers,

fort

world missile leader-

win

failures in the past.

caused

offer another market with unlim¬

:ship.-'
-t. ;;u.:'
Today these devices, which take :
Electron
tubes Nfemain
basic
up only a fraction of the space
components not only in defense
required for wired circuits, have fbut in industry and in the home
proven so useful
and necessary as well. /They perform the critiin so many electronic products— cally important function of deincluding missiles and other Space tecting
and
of amplifying,
or
Age systems—that some $40 mil- strengthening, electrical signals,
lion
worth
are
expected to be Transistors, of course, can subproduced and sold this year. This stitute for tubes in many appliis
an
800%
increase/ over five ? cations.
But electron tubes are

ited sales potential.

years

et.

will

there
Siragusa

Ross

sales

crease

sig¬

nificant size.

Extremely low saturation and a
greatly increased consumer de¬
for these two products in
particular, offer a sales gold mine.
mand

Transistor radios will continue to

changing markets. This
year the television market reaches
maturity and there are equally
great sales opportunities in such
To

sion

put them
the

examine

look.

close parallel
history of radio., After in¬
troduction, radio sales boomed lor
10 years.
They climbed steadily
to
the
saturation
point.
Once
there, sales dipped for a short
very

We have'reached the

high satu¬

ration point in television and ex¬

perienced :the

natural

dip

that'

follows.

Already we see the start
another climb,
generated by

replacements
the

home.

market

and

When

increases

sets

second

replacement
to
the
point

where it offsets the decline caused

by saturation, you begin to
healthy increase in total

see a

unit

Scilos
Sees 6

Million TV

Sales

Emergence of
T

We have reached that

point. In
1958 sales were down to approxi¬
mately five million plus units —
down
approximately 20% from
In

1959

the

television

in¬

the

plus

the

dominating influences.
new

second

third set market will be the

The great

models will help the

industry

One

thing

without

doubt

serves

basic

television

Nethersole, Jamaica's Minister

Finance,

seated, left, accepts a check for the proceeds from
Warburg, partner of the investment banking firm
of Kuhn, Loeb & Co., manager of the underwriting group which
offered the bonds to the public. Observing the formal transfer of
the funds are, standing, left to right, F. H. Foster, Acting Accoun¬
tant General of Jamaica, and John S. C. Guest, of Kuhn, Loeb & Co.
Net proceeds from the sale of the bonds will be applied by
M.

Frederick

meet,

portion

contemplated

expenditures

for

economic and social

development, including agricultural develop¬
ment, general development—such as airport, drainage, and port
and harbor development—housing, water supplies and municipal
works. The closing ceremonies took place at The Chase Man¬
hattan Bank.

Cinn. Bond Dealers
Mechanized Systems
For Thomson McKinnon
To Hold Fall Outing
the

the

and

program¬

routing

paper

are a

brokerage

new

Thomson

and

feature

offices

McKinnon,

Broadway, New York City. Thom¬
&

McKinnon,

one

the

CINCINNATI, O.—The Munici¬
pal Bond Dealers Group of Cin¬
cinnati will hold

ing Sept. 17 and 18. Cocktail and
Thursday at the
Queen City Club; Field Day on
Friday at the Kenwood Country

Dinner Party on

Club.

All

are

York

City,

has

taken

can

matic, high-speed document han¬

dling System.

fices at 7101

Recently in Europe I witnessed
dramatic

television

example
in

action.

international
the

network

magnificent

creative

There

televised

coronation

the

move

The

install

oughly

90%
This

office's

brokerage
modernized

cedures mechanize

the

traffic

auto¬

thor¬
pro¬

considerable

effi¬

ability, according to

moments

was

history's great
brought to the peo-

Thomson

Co.

has

been formed with of¬

Sidney Street to

en¬

securities business. F. R.
Gentry is president and treasurer,
and E. E. Gentry, secretary.
gage in a

had little

400,000,000 receiving tubes and
i2,000,000 TV
tubes were
'odu^ed in ig58, in addition to

picturl

transistors.
A
RCA turned out its two
electron tube; and last
,h
produced our 20 miljionth black-and-white TV pic(
g tube
We like to make tubes
at a reasonable profit, the same
competitors do.
A
essential factor has been
continuous improvement of production techniques,
or applying

im-

McKinnon.

partner of

£illionfh

fields, of

entertain-

and

what

know

now

it has become.
.

has

Electronics

impact

dustry in the nation, it provides
an
astonishing range of products
for man's needs, namely:
Lessening

techniques that speed output
cut
^osts. The sueceSsful
electron component plant today,
whethcr it be devoted to products
w

and

devising
for our

drudgery

by
equipment

automatic

homes, offices and factories.
Broadening our education, through
transmitted sight and sound.
Aiding

health,

out

by necessity be a
efficiency.
must

through new

There is a

automation

with entertainment,

fidelity and stereo.
Protecting us, through ingenious
sytems
of warning, guidance
»

and

control

growing trend toward
and in many cases

matter

and

phenomenal abilities.

the electronics scene.

And in each instance of achieve¬

ment

each

and

instance

Ill

ex¬

the demand grows for
electronic components, the build¬
ing blocks of all products, systems

pansion,

Outlook
Now

signs

showing
of

the
I

directing

the

industry itself,
remiss, indeed, if I
to
emphasize
the

business

from

George Street.
with

Shiff &

J. — Max
a securities

offices

He
Co.

was

(Millions
1046

156

previously

114

Tubes

1950

$
513

components

Mechanical
Tot'l electron,

components-^

the

d
figure

piece

1955
S

Dollars)
1057

1956

1958
S

1946-1970

1959
$

1960

1965

1970
S

1.040
551
730

757

813

837

810

885

930 1,050

148

187

228

286

419

680

719

773

387

998

1,035 1,085 1.350

444

720

770

840

955

1,050

1,175 1,490 1,700

Semiconductors
Electronic

for the men of

The annual dollar volume o
the electronic components busi
ness of the industry as a whol
bounded from $305 million in th
post-World War II year of 194
to $1.4 billion in 1950. It has gon
up steadily from there: $2.2 bil
lion in 1955; S2.4 billion in 1956

electronics

here

come

anc* statistics,

and determining the future

would be

failed

resistance

People in the electronic components
business realize today
that
they
have
an
industrial
colossus in the making—a branch
of
electronics
that
already
is
course

Potential Sales

Present and

and services.

Opens

RIVER, N.
Labiner is conducting

concept

any

weapons.

ai^ed at uniformity of size an
Thus,
electronics
extends
to. shape of vital elements—assume
many
quarters its magic touch such outstanding significance o

SOUTH

model, of

component design Can be aimed
at the outset at iow cost massproduction techniques.
This is
w*
the micromodule concept—

thl0USh hign

aJr +a

industry or defense,

for the home,

tools for medical science.

Supplying

46,000,000

ago

of the

outside

Summary of Electronic Components Sales:

Max Labiner

im¬

procedural

ciency, economy, speed and reli¬

HOUSTON, Tex.—F. R. Gentry

handling.

drama

one

and

communications

approximately

document

effects

provements

Rome. Into France, Belgium, Italy
and other countries, the blazing
of

invited.

Form Gentry Co.

advantage

not

its Annual Out¬

largest brokerage houses in New

networks

only for offering the Ameri¬
people a thimbleful of im¬
agination in programming, but for
throwing buckets of commercials
on top of it.

electronics,
far-reaching

virtually every phase of our daily
lives.
As the most dynamic in-

three

^security analysts—

States currency.
In the picture above Noel N.

son

Once more, as we did in June,
want to take issue with the

shapes and have a multitude of
applications.
V -.
Uses of tubes, and the number

vastly changed force of progress

handling procedures

stimulus to television set sales.

$12,500,000 principal amount of the Gov¬
ernment's bonds. The bonds are the first issue of Jamaica, a British
Colony with wide political autonomy, to be payable in United

Mechanization

missing how¬
ever in television is the exciting
kind
of TV programming that

" |of tubes being manufactured, con-

of the sale on Feb. 26 of

ming

we are

ment.

reach this six million figure.
Wants Better TV Programming

March 4 in New York City received a check for the net proceeds

mark.

Replacements

familiar

Space Age Giant

sounded

name

portance

Representatives of the Government of Jamaica at ceremonies

when

mysterious

dustry should hit the six million

and

sure

remember

Jamaica

1957.

in the

period and then began another
steady climb. As you know last
year, radios marked their fourth
highest sales point in 30 years.

;

to appear in almost any

seem

direction

in focus, let's

;

rate and new horizons for expan-

climate.

electronics.
They are
most of us as the
domed upright cyclinders in our
radio and television sets, but they
come in a multitude of sizes and

vital

ago.

Summing up, for a moment, the
range
of electronic components
business is widening at a terrific

said

components 3C5 1,376 2,199 2,385 2,603 2,833 3,161 3,426

4,176 4,870

Volume 189

Number

5830

$2.6 billion in 1957, and
$2.8 billion in 1958,
This

represents
in

crease

business of

j". t

...

overall

The Commercial and Financial

would

than

point out that

third

the

by Standard & Poor's, the bonds
are unlimited tax general obliga¬
tions of the city. They are being

City of Baltimore

1958

John Nuveen

Among those associated with the
managers

Company, The
Chase Manhattan Bank and The
Trust

in the offering

Inc.; Guar¬
total
came
from
electron
tube
anty Trust Company of New York;
sales
which amounted to $810 First National City Bank of New
Barney & Co.; Lehman
York are joint managers of tne Smith,
million.
Brothers; Harriman Ripley & Co.,
offered publicly
Semiconductors,
including all group that
Inc.; Blyth & Co., Inc.; Harris
types of transistors, accounted for March 17 an issue of $28,925,000 Trust and
Savings
Bank;
The
$187 million in 1958; electronic City of Baltimore, Md., 3, 3.10 and Northern Trust
Company; Chemi¬
3.20%
various
purpose ~ bonds
components, other than tubes and
cal Corn Exchange Bank.
transistors, amounted to $887 mil¬ priced from a yield of 1.90% for
Kidder, Peabody & Co.; Stone
lion,
and
so-called
mechancial those due in 1960, to par for & Webster Securities
Corporation;
components accounted for
$955 3.20s in 1979-82. The group was Lazard. Freres &
Co.; Phelps, Fenn
high bidder for the bonds at com¬
million.
& Co.; Alex. Brown & Sons; Salo¬
Looking to the future, ' it is petitive sale on a bid of 100.2218 mon Bros. & Hutzler.
.

7 o>v
5-7

11V-:-'

•

' i'

,?IH
ni

,»

Ohri.

ntHo

estimated that the electronic com¬

ponents business in 1960 will have
reached

1965, $4.2
loiiV"!: billion; and in 1970, $4.9 billion.
U U:
(See accompanying table.)
;PM oi ; Taking the individual categories
of components, we find that elec¬
tron tube business is expected to
i *
:Ai pass the $1 billion mark in 1965,
rjril'i and drop back to about $1 billion
*>'
in-1970:./ r } .?7 *c7r :h '7 V- ' 7:7
^4
i :■
'.Some estimates are higher than

a JgB&Pi

$3.4 billion; in

for the combination of coupons, a
net interest

Rated

NORRISTOWN, Pa.—Joseph W.
Hurley

has

Hurley
at

formed Joseph
W.
Company with offices

West

Airy Street Building
to engage in a securities business.
Mr. Hurley was previously with
Parsly Bros. & Co.

Muench

now

Richard

—

new

office

will

assisted

nor,

William J.

ANGELES,

Calif.—Ral]

C. Davidson has been added to th

staff of First California

Incorporated,

Company,

South

647

Street.

•->

have, here. : For instance,

those: I
one

11 111® !§1

believes that the elec¬

source

components business will
the $472 billion mark in 1965.

tronic
pass

My own estimates, as you recall,

stipulated \ $4.2»• billion* * for

etoT-'r*
tilf'

'lux

real

■

xvxyx-xvxvxvxw

that
V --'■

that

point,

big

the

But

are

7 •' .y*.

year.

citing

Mte-M

s&ss

potentials* and .tangible
'.77.7,.,7 v..7'.

results.

talking about a business with
future—a business with ex¬

ii.

gfl

•77

tea-ii

Finally, it is my prediction that
line companies with experi¬
in
electronics; will remain
in the running only so long as
they remain alert to the dynamic
factors
involved ; in
producing
electronic components.
This means continuing empha¬
sis on research and development.
It's obvious that in the pioneering
stages of our components' revolu¬
tion many approaches to the ap¬
plication of hew techniques will

evolve.

old

ence

■caiii/

•

ffOft-

•'

77.

-•

end

panies
turers
U'-r. 7-

last

can

research

significance

For

the

some

new

fellows

hardly hear about these

of electronic

days like this field

components so well and possess
much imagination, know-how

that in my opinion,
they
will
make
seven - league
strides toward becoming the in¬
and

daring,

earnings in 1958
were

fices

C.—Berens
engaging

Officers

Street,

1722

are

George

N.
W.

W.
de

Franceaux, President; A. Jasper
Moore, Executive Vice-President;
and Eugene F. Ford, assistant to
the President.

accomplished in the face of a severe decline in

SALT
mer

y
'

;

•

Opens

CITY, Utah—El¬

$230,877,000

Net income for 1958 was

$11,008,000

Rental income for the year was

the highest in the his¬

of the Company. The extensive growth of howling
enables AMF to gain steadily increasing income in this

tory

business.

engage

Partners

Montgomery,
White, Weld
Montgomeiy.

are

record year for AMF#

field, and thereby maintain a

CARTER L BURGESS,

MOREHEAD PATTERSON,

PRESIDENT

CHAIRMAN OF THE BOARD

stable-and expanding—

a year

orders at December 31,
an

were

hack-

earlier.

Dividends of 40^ per
common

1958

increase of $22,989,000 over our

were

paid by AMF

stock in each of the first three quarters

the
of

We will be

pleased to send

PLEASE

j
'

you a copy

Mr. C. J. Johnson,

USE

of the 1958 Annual Report

COUPON

Secretary

American Machine & Foundry Company

Executive Offices

AMF Building, 261 Madison Avenue,

been

Creators and Producers

of Atomic and

Equipment for Industry

securities
James

formerly
with
& Co., and I. N.

anticipate that 1959 will he

formed with offices at 494 Hanks
Avenue

Please send

J. —
Co.,
has

AMF paid divi¬

earnings base.

Montgomery Co. Opens
RIDGEWOOD,
Montgomery
&

raised to 50^.

com¬

Building.

was

the 32nd consecutive year

securities business from offices in
-

was

pared with $11,782,000 in 1957

log

Aagaard is engaging in a

the Newhouse

1958

Sales and rentals for 1958 were

Unfilled

LAKE

terly dividend

dends to its stockholders.

$83,189,000.
E. K. Aagaard

promising business outlook for 1959, the regular quar¬

general business activity.

•

business from of¬

securities

noteworthy that these results

compared with $261,754,000 in 1957

Securities Corporation is
a

1958.

quarterly high. In recognition of this, and of the more

established in 1957. It is

Berens Securities Corp.
WASHINGTON,

were

Earnings in the last quarter established a new

Foundry Company's sales and

second only to the record levels

Machine &

American

dustrial giants of tomorrow.

1958

the mounting

challenges.
that

AMF Gained New Strength in

place and gear
and development

meet

programs

manufac¬

if they fail

long

the
taking

com¬

new

older

grasp

their

these

the

nor

changes
i' <V

of electronics.

products

neither

But

find markets for their
the initial design of

devices
new

physical ^approaches and unique
manufacturing processes will pro¬
vide an opportunity for new com¬

(•

I &£

■

Competition for business through
the
use 7 of*
slightly
different

panies

\7.

and Leisure Time

Electromechanical

and Defense,

me a copy

your

New York 16, N. Y.

1958 Annual Report

NAME

ADDRESS-

Products for the Consumer
CITY

American Machine & Foundry

Company

Ma-

First California Adds

•

under

guire, Jr.

LOS

Sachs & Co.; Mer¬ Mullaney, Wells & Company, 135
cantile-Safe Deposit & Trust Com¬ South La Salle Street, members
pany; The First National Bank of of the Midwest Stock Exchange.

by Moody's and A-l

The

Stock

(Special to The Financial Chronicle)

with

affiliated

Beane,

the direction of Robert K. O'Con¬

(Special to Tiie Financial Chronicle)

111.

members
Exchange,
has been opened at 521 Fifth Ave¬
nue, New York City. This repre¬
sents the second branch opened
by the firm in the past 30 days.

;

CHICAGO,

office

branch
&

York

New

Mullaney, Wells Adds

Goldman,

cost of 3.1147%.

new

Williston

•

J. W. Hurley Forms Co.

are:

J. P. Morgan & Co.

—

New Williston Branch
A

the

& Co.

poses.

Offered to Investors
Bankers

Oregon; Equitable Securities Cor¬
poration; Mercantile Trust Com¬
pany;
R. W. Pressprich & Co.;

issued for various municipal'pur¬

328,925,000 Bonds of

components
than 800% in 12

(1317)

Chronicle

in¬

yi\

electronic

years.

.Zone-

-STATE-

Spi

The Commercial and Financial Chronicle

(1318)

announced

Leichtman,

Jacob

President.
Mr.

News About Banks

Petersen, formerly with the

NEW

BRANCHES

NEW

OFFICERS, ETC.

*ork,

and
New

Bankers

Irust

will

York,

Com-

serve

office.

Zalkin, a veteran of 34
years
of
banking, will be
in
chargeof the Bronx office at 352
149th

East

the oncl branch m Montevideo,

Uru-

will

Manager

nniipH

recent
The new branch will be called
President the Pocitos Branch since it is
situated in that growing residen¬

March 18, following the
th of Gordon R. Ball,

tial

section

Montevideo

Street.

his

summg

'k of Montreal were announced

handle

the

usual

Mr.

Bronx Hunts
no„bore

tbe

Pruschen

joined

Commer-

the

Pocitos

new

First National

City

now

v;!;.:-?-/'"'''

the

&
it

Office,

the

address.

Downtown

will

the

two

banks

for

merged institution, under
proposal, would be known as
The Bank for Savings in the City
of New
York, carrying on the
of

name

mutual
1819.

the

Prior

NBW,

Carter

New

ana
and

iof
g

uiairman

j0hn

York

Union

State's

first

Amend,

rt, Vice-President and general Vice-President

Assistant

the

First

hfis sSeelfd"n? SS dled °" March 15 at the
af i? ?
u

-d

R
General

nager

Na-

puty

Mulholland,

Manager.

Srhmidt

Jensen,

a Newfoundlander,
Executive Vice-President

)een

Manager from 1952.

aV»including
sistant

Earlier,

terms

General

Manager and a
Early
in
his

perintendent.-

eal

riGQirk
1914,

he served

London and

Hart

Weqtman

Vice-

esident last December and had

its

—

MnVinr/pr.

neral

Oberstebrink

annual

the

Lincoln,

meeting.
meeting,

exit interviewer

counselor. She

Assistant

and

annninfocl

umc

Williamsbur«

pi
oi
Rutherford, Rutherford,
with
Rutherford, Rutherford^ AL-J. with

Assistant Superintendent

Alberta

branches -at Calgary,
Secretary to the President.

fr. Mulholland has been
neral

Assistant

Manager

sinrp

\^ce-Pres^-

and ah Assistant

since 1955, he has been

was appointed an
Manager in 1956. .< At
she is in charge of the

was

Assistant

General

nager at Toronto and Montreal
m 1954.
,

career

with the Bank began
-.6
,

Peterborough, Ont., in 1923.
it

5j*.

Ridgefield,

J.,: with

N.
*

of the Board
n

City

nch

Manila.

rge
ices

all

ho
he

four

which

asso-

the

under

consolidation
the

charter

f]e N^nal
national

resident

win
will

b„
be

branches

m
in

Acc:ti^+

?J?d
assigned

bank

1923, Mr. Hubbell organized
City Bank (now Long
*

the Garden
-

1^^ tee

was

TDno

Bank

nlPd

;

Mr.
.

Sin-f

were promoted

thp

liew

the

Phiiinnina""'7

LwSdA

of
B

hier

ision.

•

Street, New

dent.

Koehn

joined

Manufac-

an.

Mr.

Assistant Vice-PresiDings is in charge of

Briareliff

t^° (' (mio!i !nSSin dshai?'

Manor

Gamer D. Reese,

office.

Jr., Assistant

pX'vMhS
fhT Ster a'nd Un^ ^e
Monroe

Seenritv

Rank

^^
associated

^
the

with

Reginald T.

assigned to the

ment

oneTatim*

operating

1957.
*

Cleave

the

Three

new

anty Trust Co., of New

York,

was

*
.

of North

America, New York, has
W.

Petersen.

to $300,000

named

Arnold

•

«'

Par Value $100.)

$350,000 by the sale of new
The common capital stock of
stock> effective March 4. (Number Houston National Bank, Houston,:

35,00 shares'
*

000

$2,000,000 by the sale of
stock; i effective
March
4.
(Number of shares outstanding-.:

on„

;

'Election

„

Merger

the

charter

title

and

have

been

announcement

pany>

title' of

The

Oberlin Savings Bank Company,
Oscar Nittel, formerly Chief Ac- A branch was established in the
countant of the Bank, has been former location of The Kipton
named Assistant Controller.
Bank Company.
'
.

and'-

1954,

career

1956,'

1958

of more than

highlighted

honors

draws to

the

with na-,
appraisal'

close this month

for Bank of America's Vice-PresirhM

,anH

Annrnkpr

vr\™\n

a
Chief Appraiser Edwin
Launer.
T

1915 he took his xirst job in
a

southern California Bank.

later

years

AmoHr.n

aT1a

joined

hpr.mp

Am^uca a"d becal^e
W1th

oberlin, Ohio, consolidated
Company,
under

that=

o£

elected

phases

all

Two;

Bank

iHpntifiprl

of branch

com¬

mercial and credit activity as well.

with The Kipton Bank

Ohio,

:St

banking

iptlt

under

The Oberlin Savings Bank Com-

by Kipton,

cashier

years,

tional.

Central

was

Vice-President ir

28,

staff

the
He

vice-President

$16,400,000.

effected

;

1948

Assistant

Company,

was

Assistant

of The North Ameri-

merger

Chairman

Committee,
andJ
Aston, President of the.

joined

okla

Cleveland. stock of
Cleveland,^Ohlo,
common

The

Bank'inJ

certificate was issued
approving and
making effective,-

with

Mitchell;

Mr. Mitchell, a former -Vice-'
prtesident with the First National'
Bank and Trust Company, Tulsa,

of the close of business Feb.

Florence,

under

t-'

Executive

the

A/r

Mason

James W;

Va., -merged

■

Assistant Vice-President of

Bank,
,

^e.. RePU^Hc National Hank of
Hallas^Texas was announced by
Fred

-----

„

as an

;

Petersburg,

nnn

200,000 shares, par value $10.)
*

Mr. Branditz will assist Charles
W. Metcalf, Vice-President i and
-

new

Western Pennsylvania National

:!:1

officers

Dwight Carter, Jr. has been ap,*
*
•
v! Pruschen as pointed to the
position of Assistant
The common capital
Vice-Presidents, it was Trust Officer." Mr. Carter served The
mIllinois National

Zalkin and David

Assistant

of1 the

Chaimian

was

Harold J. Marshall, President.

The Commercial Bank

cording to

who

•

National Bank of Cleveland.
National Bank of Cleveland

London office and Robert H. elected at National Bank of WestBlake of the Paris office of Guar- Chester, White Plains, N. Y., ac-

Louis

City Bank also
the opening of Its
sec-

since

Directors.

North Carolina, died March 10.

Cleveland,
National Bank in 1942. 2195 Central Park Avenue, Yon- Ohio, with common stock of
$600appointed an Assistant kers, March 15 completed 25 years
000, into Central National Bank

At present he is

stock dividend, and from $300,000

Bank

to.MjjO and a of^ice.^
Formerly

Board

Trust

antl

*•

can

Standard

Mo.;

to William

common

Jfus!i

He was
Branch Manager

Louis,

17 according

comp'vEffectiveofthe riose The First National Bank of.
of taslness din
23
Midland T?xas Sed its
<« business Jan. 23.
Midland, lexa^^"creasec ks com .
^
* *
^ o£ to $2,W,000 by a 3stock dividend,.
S ;
5
?
? effective March
(Number of*
*he+ Kutztown National Bank, ^UV« ^lcl}
QOO^shares
Kutzstown, Pa., was increased snares ouibianaiiig. ^o,uou Miaiet.,,

merger

the Secretary in charge of The Counwith ty Trust Co.'s drive-in office at

merged

Na¬

Robert Hanes, 68, officer of the
Wachovia Bank and Trust Co.,

the

Asd^nf

bank's

National

ounces

I'imi

^rer.s Trust Company when
Company

the

First

^r^U T toeTwsleath,

;

merly

St.

T Mr. Alexander will succeed, his

vice"president and Assistant charter and title of State-Planters
Treasurer, respectively, Dr. Joseph Bank of Commerce and Trusts.

the

lncluded elected Vice-Presidents.

Ganun
the

Bank>s

appoint.ed1ali E- Hughes, Chairman, announced. The former main office and
Branch Manager in 19o0
Mr. Davenport, who is in charge branches of The Citizens National
Assistant ^ecretary m 0f the bank's office at 2 Gramatan Bank will be operated as branches
Wimpenny is Avenue, Mount Vernon, wis for- by the continuing bank.
to the
Melrose

was

a- McDonnell, Chairman of the

at 1429 First Avenue,

bur

Bank "of *"yofT
ot Y ork

Bank

Bank's

Directors

March

The..Crnty Trust (;0'' an? rT,'e Citizens National Bank,

White Flams, N. Y.

announced

also

Bank

C<!iU1ity NJti0ino! Ba"k ander'

Philippine

her

irst

and

ointment of Carelton M. StewJr., to Assistant Vice-Presit. He will be associated with
d office in

York

tional

Hank, McKeesport, Pa., announces
nf TTvocJ TT
Rrun_
City, New the appointment of Fred H. Bran93, March di.tz of McKeesport as Assistant
'
Vice-President, operations.

bank's Scarsdale office, Mr. Reese
Bank^s 74th Street office located bas been in his present assign-

ervision

The

Alexander, Jr.,
membership on

Board

effected

was

Moss

elected

close of business Feb. 28.
^

5>^5»000, merged, effective as
2,,

fVic'annnintmnnf

w.T

bank

wtapenm

lM7

HOTac^

bv
-

increased from:;
a stockr

was

$759,000 to $1,000,000 by

Island

operates
Islands.

the

Rock., Ark.,

xroii««oi

*°rk °0Un*y ^tional

R„edc,<^>1(?";.^a" with common stock

Chair-

of Long

York, died at the age of
13, 1959.

I'l-,,?:,?'? Sif?

Bank

Philippines.
Mr.
been Manager of the

e-President
e-President

■

*
*
"
State-Planters Bank of Com
SMe-Pb^re^^jof^ComPaul Davenport and John A. merce and Trusts, Richmond, Va.

York.

the

has

nry

Ywk"re anllunced

...

VrtttL.

Trust Company, Garden

a? As^stant ^pcrptn^ 5 S

149th

New York has appointed RichM. Henry resident Vice-Presnt

common

..s

First' National

„

stoXoT&0^00,'W7merged.'c°7?n capital stockr-of :>
The First National Bank in Little

George Loring Hubbell
man

faeturw

Bank yr
nanKy

TheTdgeHcld'' Natfonal" Banl Berrien Springs State

personnel relations division of the
personnel department.

Deputy

Manager since last June

.v.

charter-'.

under

National
i\aiionai

0f Niles. A branch was established >.?•/
m
jn The/ former • JocdtionVbfYThe *4'
in
ine
xoiniei
iuca iioiiui'
i.zxie

from $150,000

Chairman of the board.

of .Niles. Niles,

title of First
mievoi,rirst

and
ana

Andnrwa

Mich.,,and First

Mich.,'consolidated

* 4

ot3

the Bank's main Edmonton of-

Stiie Bank,";.'

xhe Berrien Springs

*
*
*
Island Trust Company) and served Cashier, and will specialize in the
AcciSorX
Mr. Flanigan also announced the ns its "President until January Bank's automation and "electronic
Lont
tho
appototments of Frank H. Wim- 1951, at which time he became banking": program.

Mich.

Arthur *
^Executive *■'»<
Lxecuuve r

*usnman, tormeriy
Vice-President. Mr. Mayberry was
r
J
*' •>•••• *•- •
!= .v

«-

stenographer.
In
1955 she was
assigned to the personnel departncf»1or

Detroit,

new

tus ^rs„^nmr^c;
ment

succeeded

com-

Martin

same

k943
Chairman^ofThTBoaS.^dent

r-nii

will

«»feb-2s-

President

announced the election

Manager of the

ew^^arhp^^pgewnSin^pnnfv
nprai

Hooper,

TrustVoffice.

xT„„.

Bank

National
He

■■'

been

The Lincoln, was elevated to
the post of Vice-President and

A<^i<?tant

a«3

has

age ol 44' Alduino Assistant Vice-President

of Mrs. Edith

secretary of Manufacturers

present,

elected

was

The appointment

Madden

of trustees of The

been

Manufacturers

Trusfee'"Brooklyn

Walter

board

tager, has been elected Kesi- tional City Bank of New York,
d

officer

George Wesley, new business; President
representative in the Instalment
■ ■<>..Yv?

Square Savings

The Lincoln Savings Bank, Brook0f

j0pn

hi
Daniel

ol
the

savi,,ss bat- brk!yn> n-y-

rne

Committee; G. Arnold

Mayberry has

e]eeted Chairman and Chief Exec-

founded in 1848.

was

elected

•,
,Ar^b1^r 5^' jlcpse11! PaPy will similarly establish an
Vice-President ^
111

ecutive

staff
with

Commerce, Y *Fi^hman°"formerly

R. D. Mulholland

ara
ard

the
was

Bank

William

utive

joining

Mr.

Industrial

savings bank, founded in

The

Bank

street, wnicn
Street, which will also continue to
be the legal Head Office as set

ecutiye

appointed

Bank's historic building at 55 WlII

On May 20,

was

Estate Planner in the Bank's Trust

Department.

^ank'

special

The

executive

the

Head

remain

Carter

meetings later
dividend; and from $1,000,000 to ,
this
month, it was announced stock of $1,UUUJJUU, andlhe West- $1,250,000 by the sale of new stock, ;
jointly by Alfred S. Mills, Presi- S,rn JNa.y/,nal Bank ot Yorl^Afar4Lygffective March 2.
(Number of
'dent of The Bank for Savings and 5r*'
£amn£,on stock of $600,- shares outstanding: 125,000 shares, •
R.
H.
Brownell,
President
of °2°> ,and 5
f armfrs„an^ ™r" par value $10.) ■"v'.:;
ck-'.
Union Square Savings Bank.
chants^National Bank ol Red -Lion,.
.
^
^
v

headquarters

$1,200,000 by the sale of
new
stock, effective March 4. (Number
of
shares
outstanding:
120,000
shares, par value $10.)

1953, Mr. Carter
Mortgage Depart-

n,n

Merger

action

out-of-town and
business, will be located
most
part at the new

overseas

for

Mr.

1957

being presented to the Boards of

carried

and

;

ings in the City of New York an-d

Avenue—to be completed in 1961
—provision for an uptown executive
headquarters of the Bank.
Officers in charge of uptown acnow

!*'■

a
^

the Union square Savings Bank is

its decision to include in the plans
for its new building at 399 Park

counts

proposal that would lead to
merger of The Bank of Sav-

Trustees

;

the

in the capacity of Mortgage

ment

main'

hank's

The First National City Bank of
New York announced on March 17

thur C. Jensen

merger

iKp

Branch,
operates

America.
*

the

moved

""If!?."':,IT.:..."? I95:>jonn officer and credit
'

overseas^hfcludingS52^a^ches^
overseas, including bl biancnes i*
.Latin

Na-

Si ^oan Department;; New .Rochelle

..."I:,,

opened for business.

was

into

increased from

was

$1,000,000 to $1,100,000 by a stock
dividend, and from $1,100,000 to

'"j"?jithBerrte®. Springs,
Trust C^anv
N^ York He ^ Wesley joined .NBW im May National; Bank

banking

The bank has operated contininuously in Montevideo since Aug.
2,
1915, when its first branch

With

was

Company.

transactions.

there

consolidation

its

Thursday, March 19, 1959

Springfield, III.

Teller,

tional Bank of Westchester. After

as-

post

AvenidaB7azil°2570?K'is Equipped ^al"f»k1«s„
to

Prior

present

Point office of the Bankers Trust

before

Commercial

Servicing Supervisor.

Mr.

changes

executive

New

Company,

and credit officer at the main

.oan

Bankers

and

CAPITALIZATIONS

Top

Trust

pany,

REVISED

York

New

Colonial

CONSOLIDATIONS

with the New Rochelle Trust Co.,

Bank

supervisory

holding

trative
Tn

adminis-

positions
Pctablished

1QoQ

Ir\ 1939

ke. establlshed

the

Southern Division Appraisal department

was

the bank's Los

headquarters.

geles

named

nam®a

came to

stock

Anhe-

1946

-Vice-President

and:

v^e rresiaeiiL a

charge

the

appraisal activities.

Bank s

L!i !'

statewiae.

Volume

5830

Number

189

The Commercial and Financial Chronicle

Merrill

Lynch's Annual Reporl
Voices Optimism About the Future

Annual report for

Wall Street's largest and recently incorpoforecast for the

Some say

rated investment firm repeats 1943 optimistic

•

future.-f Noting that

;

of progress,

■

sometimes forget the startling

pace

the joint report of Mesrrs. Smith and McCarthy

it's impossible

;

suggest we not underestimate our potential.

(1319)

education

Merrill

Inc.- authored by

which have
been going on for years.
One of
the fundamental policies of
our

Winthrop H. Smith and President

company

The

report

annual

Lynch,

Fenner & .Smith
board Chairman

Pierce,

programs

■

has always been 'a broad
of public education, ex¬
plaining what it means to invest
and how to go about it.'
program

...

annual report

that will be clear and

"The combination of these-things

•

to write an

has created the largest number

of
The

shareholders in U. S. history.

estimated

total is

interesting to this

10,500,000 or

Their

about double ten years ago.

stockholder...

activity during the past year re¬
sulted in the largest volume of
trading on the New York Stock
Exchange in 30 years and the
fourth largest total in U. S. his¬
tory.
of

"Volume

in relation

Michael W.McCarthy

Winthrop H. Stnitb

trading,
level—in

modest

'turnover ratio' of 15%

praises the

Michael W. McCarthy,
wider public

interest in securities,

castigates misleading and fraudu¬

practices, and reflects opti¬
about opportunities in re¬

lent

mism

firm
to

changed

f^om a partnership
Jan. 12, 1959.
bankers,'in

The two investment

discussing i n v e s tm e nt-m i n d e d
America, point out that "the rise
in our business directly reflects
,

emphasized anew.
"Apart from the high price level
of many common stocks, both in¬
*.

dividual

frequently asked the reason
for this surge of public interest in
securities. We do not think there
is one reason but rather a combi¬
nation of several basic trends.;
are

consider

stocks

growth has av¬

tion about

eraged 3%

despite depres¬

ment

year

Despite the

significance to
confidence

even

displayed

by, the

U. S, consumer. During the recent

Federal

the

Reserve

margin requirements

level unmatched except right

after World War II when the Gov¬

remarkable

the

full

dozen U. S. Govern¬

Board raised

"Of

In addi¬

bonds

October

peak and most economists predict
new records.are soon to comd.

and' resilience

almost

were

yielded over 4%. "These days many people are
carefully watching the securities
market.
In August and again-in

well-publicized 1957-58 recession,
industrial production has now re¬
covered
to
almost
the all-time

common

many

percentage point lower.

ades this economic
a

bonds

excellent

—

than

mon

For the past six dec¬

sions and world wars.

inves¬

unusual

yield
stocks.
As our accounting period ended,
top
quality
corporate
bonds
yielded about 4.1% whereas com¬

situation
more

growth, of

and, economic

country,

our

institutional

and

must

tors

"The First is the continued pop¬
ulation

Thought

for

current year of financial exuber¬
ance we think
this action should

growth of public
in investments.
We

interest

Time

"Yesteryear and tomorrow, one
of our company's main credos is
'Investigate—Then Invest.' In the

substantial

the

meas¬

risen to

investment

nation's largest

corporation

pre¬

Century.

this
prices

by the popular averages have
epic peaks.

ured

trade and finance.
The

stock

years

lower

of the 57

than in 47

1958

ceding

Meanwhile

the

fact,
was

international

production,

search,

however,
still

shares listed is

sought to curb inflation.
are several other facets

ernment

"There

business which

our

us to.
of tips

cause

recession, he confounded the ex¬

ponder.

perts by pushing his spending to
a new high.
'
:
v '
:.v "The ^Second is the huge capital

and rumors which frequently trap

;.investm&fff"by. American industry
in new,-plants, new processes and

working' so hard the President of
the nation's second largest stock

research

'L'v.s'

still

for

newer'.things:
World War II

Since-the. end

American industry has

titanic one-third

invested

trillion dollars

plants. The pace has slowed
somewhat but it is still $30 billion

new

year.

supplied

Much of this money was
by individual investors.
behind

factor

Third

"The

in¬

creased

public interest in securi¬

ties

the

which

decisive
S.

manner

businessmen

have

long-term growth with

combined

ingenious ideas to produce rising
corporate earnings and dividends.
significant that during

the
,

recession American busi¬

leaders

ness
same

confidence

consumer

—

demonstrated
as

the

the American

although

corporate

profits were down sharply divi¬
dend payments were at near-rec¬

unwary

"The

factor

own

our

done

all

dollar has been

de¬

Maybe

that

the

some

current

with

tempered

pany

trends

and

caution

so,

The Dayton

feel

ads.

dull

in financial advertising should be

manner

"Lastly

Company instantly available in a

far-from-

convenient, easy-to-read form. A

year

loses
on

actual

practice,

one

purchasing
savings.
"The

common

stocks

method of preserving the
power

Fifth

individual

tens

issued

would

each

find all

year

interest in securities

for the wider
is the

public

map-in-a-pocket that gives

several foreign countries

folded

clear

picture of the prosperous 24-county
area of West-Central Ohio served by
DP&L. The coupon below

will

your copy

pertinent facts about the

will bring

of DP&L's 1958 report.

public notice

longer

handle

so-called
Now and then, of

course,

orders

stocks.'
a

millions

turns into
but this is a rarity.

penny

stock

nanza

The Dayton Power

'penny
a

bo¬

and Light Company

North Main Street, Dayton

1, Ohio
t

"We

are

still against uninformed

salesman

and

the

firm

Please send

copy

your

1958 Annual Report.

NAME

"...

represents; (2) 'Investigate—Then
Invest.'

are

glad to learn that

STREET

the SEC and many state agencies
have received

additional funds to

fraud in the securities
business. This is taxpayer money
combat

reason

novel feature of this issue is

phony stocks.

rity

are

men). Those who want statistics

generally known as a 'boiler-room'
The American public

operation.

citizen awakened to the cut of in¬

theory and

for stockholders in 47

speculation in penny stocks. And
again we would like to suggest
to investors: (1) know your secu¬

Both in classic

think we've come mighty close!

(keeping in mind the fact that DP&L
women stockholders outnumber the

deplore the increase
stock
promotion,
This is

fraudulent

usually in 'penny stocks.'

clining for half a century. Based
on figures of the U, S. Department
of Labor,-the 100-cent dollar of
1913 is now worth 34 cents. Only
in recent years has the average
flation.

Power and Light Com¬

reviews the

states and

con¬

but

servatism.

public awareness of inflation. To
a
degree, the purchasing power
S.

financial

many

buy

our

part

leasing them to our customers.
"Another disturbing thing is the
crescendo of infationary language

that

the

rumors.'

have always
best to carefully check
and figures
before re¬

facts

rising

factories have been

unconfirmed

ination
For

"In 1954

Fourth

neophyte investor.

rumor

exchange recently declared: 'Ways
and means must be developed to

ord levels,
"The

rash

curb the effect of the wide dissem¬

We think it

the last

is the

One

well spent."

Send for your

free

copy

CITY__

ZONE

STATE

■

(1320)

The Commercial and Financial Chronicle

with normal

competitive processes at various points was
in the economic interest of the
country could not fail to
have their effect.

Continued from first page

As
One

We See It
wonders

sometimes

councils of this sort

can

how

grow to

confused

and

Here is

general situation to which the public would
give some very serious thought, but it may be

do well to

confusing

taken

be.

for

granted

answer.

that

arbitrary controls

the

not

are

cause

Continued

them

The

to fall.

Large sections of industry today, so the reasoning
runs, consist of a relatively few very large corporations
which are able to hold out against price depressing in¬
fluences and do so. In fact, so it is added, prices have of
late been rising in the face of depressed demand. Neither
do restrictive credit policies succeed in preventing higher
prices according to this theory. In these circumstances
careful and prudent fiscal policies likewise are, we are
told, no assurance of avoidance of inflation. This type of
argument usually runs fairly quickly to suggestions that
what is needed, or what may be necessary in any event,
is some form of governmental price control.
is

only in quite recent months that any one in
Washington has had the hardihood to apply this reasoning
to the situation that exists today in the field of wage
determination. But, of course, the parallelism between the
conditions said to exist in certain large industries and that
actually and obviously existing in the ranks of organized
labor is too clear and too conspicuous to escape notice and,
ultimately, recognition by the authorities. Such notice
and such recognition it is now
getting, fortunately, but
unfortunately in all too many instances current thought
slips off the track in ferreting out the basic causes and
formulating corrective procedures. We even hear sugges¬
tions—though we doubt if they are to be taken seriously
for purely political reasons—that
wage controls may pres¬
ently prove necessary.
Now what this all

down to is

comes

assertion that

where competition does not exist, or where it is not
adequate, the natural forces of classical economic theory,
fiscal prudence on the part of
government, and sound
credit policies are all likely to fail to make
prices or wages
responsive to changed or changing economic conditions.
Of course, this is obviously true and has been so
recognized
since men began seriously to
study the principles of eco¬
nomics. The trouble with current
reasoning is found in
the remedies to which
arguments lead. It would appear to
be plain as a pikestaff that if want of
adequate competi¬
tion is the root of the
trouble, then the remedy is a resto¬
ration of competition. It
is, of course, because no one in
public life is much inclined to offend the powerful unions
with any
program that would deprive them of their
monopoly position that there is so much quibbling about
the matter

far

wages are concerned.

A Real Lack

As to

dustry and the motor manufacturers

the steel in¬

often mentioned

connection, lack of competition does not seem to
us to be a
foregone conclusion by any means. The Federal
Government has been
operating a sort of trust busting
program for some time past, but it requires more
credulity
to feel any
great confidence that the
sought will be reached in any such manner as this.
It is, of course, obvious that the sort of
constant, minute
by minute competitive fixing of prices envisaged by the
we can summon

ends

classical economist does not and could not well
exist in
modern
ever, to

industry. We, for

our

part,

are

not prepared, how¬

that either the steel industry or the motor
very long withstand the sort of price
pressure that the consuming public could
bring to bear—
provided, of course, that demands from the public could
say

industry, could for

be met within irreducible cost limits.
The fact

is,

has lost

lished practices on the
part of the government are

responsible.

The

exceptional

foreign automobiles which
mand for lower

demand

appears to

for

the

chiefly
cheaper

persist, and the de¬

priced vehicles of domestic make (which

is said to have led domestic manufacturers to

plan further
suggest that the frugal im¬

production of them) seem to
pulses of our forefathers are beginning to re-awaken in
the American mind. But
by and large for a number of
years, not price but glamor seems to have been the
key
to large sales by motor manufacturers.
Various forms of

price fixing formally legalized of late years and govern¬
mental policies which seemed to teach that
interference

page

early 1960, thereby adding
stimulus

the

market

new

for

tele¬

vision sets.
Certain

sections

larger categories
Electronics

band

Shy Does Not Limit

field

i t h i

the

receive

the

making
will

—let's

it—luck.

say

knowledge

Technical

certainly

necessary

but it is not all.

Therefore, of necessity, the in¬
vestment

manager

look

must

what

this

area

essentially

the

"by-product" of this science of
Electronics; in short its applica¬
tions, or what some have come to

consider

the

tronics.

industry

such

terms

Elec¬

tangible evidence

measure

can

its

Radio-TV

Production
should

Outlook

little

television

sets

future.

the

promise

man

the

street—

economical

use

the

vicinity of 6.0 frequencies and more for new or
million units in 1959, against 5.2 expanded radio services.
million units in 1958 and the 6.4
Opening up the microwave por¬

population areas
first-set demand,

sonably

receivers

apparatus.
As we glance, into the "Tomor¬
row Land" of
Electronics, we see

im¬

much

million output in 1957. The satura¬
tion of the market in high-density

project, within rea¬
based
expectations, its

and

many things which have not yet
fully passed from the scientist's
notebook, or the technician's jar¬
proved base compared with 1958, gon, to the layman's' language.
arid there appears strong indica¬ They are,
nevertheless, important,
tions that the current year will if not completely understandable.
see the consumer segment return¬ The
offset carrier,
single side¬
ing to the 1957 level.
band, split channel, and other
techniques — which today mean

has started

year

and

growth

transmitters

air traffic control

and

The Futnie oi Electronics

hold down'

may

tion of the
trum

electro-magnetic

h i

spec¬

all
rays—for' beaming
one point to
another is furnishing new voice
and telegraph channels,
teletype,
—

encompasses

and

waves

but the higher
personal
expenditures
a
stimulating effect
on the second-set
come
buyer* The color facsimile; relay and remote-con¬
tronics and the extensive demand TV market shows signs of mod¬ trol
opportunities' for
common
erate improvement in set output,
factors for its output require im¬
carriers, broadcasters, public
mediately a segregation of the but, until lower-priced sets are agencies, industry, and other busi¬
markets so as to comprehend the available, the demand factor prob¬ nesses.
'
1 <
"
significance of what we are deal¬ ably will be slow. The picture
Further, tropospheric and iono¬
ing with. This, in essence, is what tube is the heart of the color set spheric scatter offer the prospect
and there are a number of de¬ of
comprises tlie Electronics industry
international communication,
whose growth rate in 1958 sub¬ velopments under way that could including television. This
Involves
sided temporarily due to lowered have a significant effect on this using these
upper layers of
the
Sees Total Electronics Up for 1959
The

broad

product lines that
under the heading of Elec¬

level

communication from

should

have

,..

demand

for

consumer

products,
television
sets, and the stretch-out of mili¬
tary requirements.

particularly

able

radio and

believe

that

favor¬

economic

market in

from

try.

cling the globe heighten specula¬

of electronics demand in the

with the gap between
and 1959 tending
to be closed. Total factory sales of
electronic products for all seg¬
sumer

area,

results

1957

of this field in 1958 was
$7.9 billion, compared with the
previous all-time high of $7.8 bil¬

Over-all output in that year
12.2 million units, compared

with

lion

in 1957. The demand from the

posable income—the main
dient

ingre¬
product pur¬
push
the
1959

consumer

chasing— could

high of

new

Military requirements have been
the dominant factor in the field of

Electronics, with output totaling a
$4.1 billion in 1958, against
$3.9 billion in 1957. This high will
record

not last the year out, since the ac¬
celeration in the guided missile

field

this year will undoubtedly
propel the figure to the area of
$4.4 billion by the end of 1959.

Following the military in signif¬
icance is

the

dustrial

section

commercial
of

and

in¬

Electronics,

which advanced to slightly under
$1.4 billion in 1958 from $1.3 bil¬
lion in 1957.

In this

category fall

such

important products as com¬
puters and industrial controls, both
of
which
should
evidence
out¬
growth

because

economic

pressures

impinging

the

set

These

are

rates, which require

two

the demand side ol

equation.

wage

importantly

increased

services of data

The

products

processing equip¬
important place that
this

have

group

al¬

ready attained should result in a
sharp expansion in 1959. and a
target figure of $1.5 billion ap¬
pears a reasonable

The

hold,

expection.

entertainment,
segment

third in line of importance from

long-range viewpoint.
in

1958

declined

is
a

Production

$1.6

from $1.7 billion in 1957.

hi-fi

billion
The 1959

1957.

million

units

1957.

This

has

been

trend

may

ex¬

down in 1958 with estimated out¬

put at $860 million, compared with
$900 million in 1957.
The only
part of the component segment
that

resisted the downward pres¬
was
made up of solid-state

devices.

istors,

This is the

diodes

turized

and

devices

satellites

cir¬

communication in

of space platforms and in¬
terplanetary travel.

an era

It may be said, without fear of
contradiction, that as far as the

progress
of Electronics is con¬
cerned, the sky most assuredly is

"Pat" Boone Joins

Advisory Board of
Townsend Fund
The

appointment

Eugene

"Pat"

area

of trans¬

similar minia¬

that

have

been

Charles

Boone

TV,

records, movies and most recently
a
best-selling
author,
to
the
advisory
board

fourth

segment of Elec¬
tronics comprises the component
division, which had a sharp let¬

sure

to radio

this year.

The

the hesitation in

pected to continue in 1959, and an
advance
of
some
25%
in hi-fi
sales appears to be reasonably as¬
sured

tion

manlaunched

not the limit.

appeal
even

survey shows that, at the retail
level, about $500 million of such
equipment was sold in 1958. up
from approximately $400 million

Townsend
U. S. & Inter-

national
Growth Fund,
has been an¬
nounced

Clinton
D

a v

i dts

Chairman

o n

the board. Mr.

Davidson said,
"A 11 ho ugh

fast

young

sized

years,

the

replacing older and largerparts.
Component demand
in 1959 is expected to recover to
approximately $1
billion,
with
operations during the year enjoy¬
ing the most favorable climate in
the past three years.
Spectacular
The

Growth

spectacular

growth

solid-state

of the

devices

shows no sign
and a reasonable
output of 70 million units may be
of

diminishing

expected in 1959, a rise from 47.5
million

1958,
and an even
sharper advance over the 28.7 mil¬
lion

units produced

upward

growth

strengthened
of

in 1957.

momentum

remarkable

version

house¬

Electronics

units

14.0

the economy in 1958 did not halt
the forward surge of stereophonic
and
hi-fi apparatus.
A careful

off¬

labor

efficiency
productivity; and a strong
and
almost imperative need by
industry and commerce for the
ment.

The

strong that

rising

and

million

reasonable for 1959, par¬
ticularly since the appeal of highfidelity has turned public demand
strongly to FM radio sets.

Examines Military Segment

15.4

increase

appears

ments

military, coupled with higher dis¬

set

ments from the automobile indus¬
was

con¬

1959.

atmosphere to reflect transmis¬
production dropped sions far beyond the horizon. Arid,
quite sharply in 1958, largely as finally, bouncing radio signals off
the moon and receiving emissions
the
result of lowered
require¬
Radio

atmosphere which
has prevailed since April,
1958,
has resulted in an improving phase

standing

so it seems to us, that the American
price consciousness in substantial de¬
gree. Inflationary practices of the past,
preachings of
public officials in some instances, and a number of estab¬
consumer

set.

impetus in 1959. These
transistors; computers; in¬
dustrial controls; stereophonic
products; and communication
equipment, covering single side¬

approximately $8.6 billion.

in this

that

from first

grand total to another

Competition?

large sections of industry, such

transistorize the television
This may be accomplished in

way to

include

In current dogma "administered prices" are simply
prices which do not respond readily or quickly to condi¬

Thursday, March 19, 1959

greatest

What Are "Administered Prices"?

tions which under other circumstances would

by' the
computer

The

highly
cessful

Pat

suc¬

Boone

has shown such

degree of busi¬
ness
judgment that his youthful
viewpoint will be a great asset to

the board

and

our

shareholders."

Last year, when he was gradu¬
ated
from Columbia University
cum laude, being at the
top 5% of his class, he also held
top TV ratings for his half hour

magna

show.

addition, he

in recording sales and
box
office
attraction
theaters.

No. 1
also No. 3

was

movie

this

being

rapid con¬
circuits to

transistors and this process should
as the year progresses.

accelerate

Federal Securities Adds
(Special to The Financial Chronicle)

LOS ANGELES,

Calif.—Wilbert
John

L. Armstrong, Gerrie Baker,

Increase

in radio
demand, par¬
ticularly in the portable field, will

Doll, Harry R. Ellis, Roderick C.
M. Hall, James N. Johnson and
Faye McDonald are now connected

add to the demand for transistors
and intensive
efforts are under

with Federal Securities Corpora¬
tion, 7805 Sunset Boulevard.

Volume

Number

189

5830

The Commercial and Financial Chronicle

WASHINGTON, D. C.—Funda-

By OWEN ELY

Central Illinois Public
Central Illinois Public Service

mentals
a

Service Co.

serves

Economic activities in the areas served include farming, coal
mining, oil production and refining, petro-chemicals and a wide

:'>;v

ended
was

October

31,

1958

Total

revenues

$54,237,161,

were

for the

12 months

of which

about

derived from electricity and the remainder from

tric revenues

gas.

obtained approximately as follows:

were

presidential customers, 30% from large light and

89%
Elec¬

36% from

customers,
22% from commercial and small power customers, and 12% mis¬
cellaneous. Sales to petroleum and related industries, and to the
coal mining industry, contributed about 11% and 7%, respectively.
power

The company issued a bulletin in 1958 "Concerning Selected
Commercial, Industrial and Governmental Customers," which in¬
dicates the large number of diversified commercial and industrial
accounts

served.

industrial

issues frequent

also

developments in its

releases describing

new

having increased from less than $20 million in 1946 to $54 million

recently.

In 1958

increased about 3% despite the indus¬

revenues

trial recession in the first half of the year.
*

■

Generating capability of the company's plants aggregates
572,000 kw. The company is constructing an additional unit in its
Meredosia Station with a nameplate rating of 200,000 kw, scheduled
to be placed in operation in the summer of 1960.

Banking,

for trainees inaugurated

1946

ers

by the Investment BankAssociation of America, will

for the first

time be offered

n?.n^Lmra5hf
this
program

Sept.
.

4,
-

■

?laf rS°S
Aug. 9 to

summer,
was

announced

dormitories

Campus

the

Evanston

problem

additional

Bion B. Howard, Harry G. Guth-

William D. Kerr, Partner, Bacon,
Whipple and Co., Chicago, President of the Association.

Northwestern

mann, and Loring C. Farwell, all

Originally

offered as a classroom
course
by IBA Groups in
cooperation
with
universities
throughout the country, the program has also been available since
1951
on
a
home-study
basis
through The University of Chi¬
least

once

each

year

since

1946, the Education Committee of
the

Central

States Group of the
cooperation with North¬
University has offered
this program on a 17-week basis

western

The

will

this

Group
be

17-week
course,

quartered

Finance

the

various

securities

specialized

Enrollment
The

costs

Central
Trainees
modern

teenth
4

will

This

limited

$475 for

sum

Educational

Boehmler

Investment'Bankers
of

th»

from

Iinedca 425"

As-

Tto-

Street, N. W., Washington

Named Director
Pinkham, an associate
Co., was elected to the
Board of Directors of United Asbestos Corporation, Ltd., it hae
been announced today by A. B.
Davidson, President,
of Allen &

each
all

covers

instruction,

plication should reach the Washington office of the IBA on or
before April
6, at which time
places will be allotted.
summer

and

nhrSnt

obtained

Bartlett

room, meals,
text materials and notebooks. Ap—

business.

tuition

registrant.

fields

Director

Instruction by the Urnversity faculty will be supplemerited with addresses given by
investment bankers drawn from
the

Sfi

the

folder

infnrmatinn

,n£ay^ bT

Erwin

teach

course.

This
con¬

Department

will

summer

will be identical in

with

States

week.

concentrated 1959

program
tent

the

50.

cago.

IBA

designed

by readings and supplemented
An announcement
assignments.
Professors

Walston Adds

Staff

(special to the financial chronicle)
PASADENA,

accord-

program,

Calif.

—

Lyle

G»

ing to Robert O. Shepard, Pres-

Eade has become affiliated with

cott,

Walston & Co., Inc., 595 East Col-

Shepard

Co.,

and

Inc.,

Cleveland,

Chairman of the IBA

Education

Committee, will make

The construction program for 1953 approximated $19 million,
100,000 kw generating unit at the Grand Tower Station be¬
ing placed in operation in March. The construction expenditures

••••';
a

will

week

the

country.
primarily for
satisfactory completion of this course
will be accepted by the New York
Stock Exchange in partial satisfaction of the requirements necessary
to
qualify individuals
as
registered representatives
While

Northwestern
and
a closely
adjacent University dining room,
The 25 to 30 hours of classroom
each

members located

sections

investment banking trainees,

be served in

attendance

all

feasible for

program
of IBA

trainees
in

meals will

with six class hours

area,

The company has shown better than average growth, revenues

hi. •

Investment

course

electricity and gas to a
population of approximately 650,000 in central and southern Illinois.
The areas served are located in 61 counties, the largest cities in¬
cluding Quincy
(41,450), Mattoon
(17,547), Canton (11,927),
Macomb (10,592) and Paris (9,460), The company also furnishes
natural gas service to 21 communities, and propane-air gas to one
community. Natural gas is purchased from Panhandle Eastern
Pipe Line Company and Trunkline Gas Company.

variety of smaller industries.

Banking—
Program This Year

To Be Four-Week

Utility Securities

classroom

Fundamentals of Investment

Public

2£

(1321)

orado

Street.

was

formerly

with Daniel Reeves & Co.

FINANCIAL.

HIGHLIGHTS

new

for 1959

are

estimated

about $23 million and for

Peak load in 1958 (up to Dec. 9),

$22.5 million.

that time the company genrated

was

1960 at about

505,000 kw.

Annual

Report

555,000 kw and received 55.000 kw

needs it
Illinois

able to supply 105,000 kw of interchange
Power and Union Electric (with which it is
was

nected),

During 1958 the

company

of its kwh output.

bought (on

power to
intercon¬

net basis) about

provide construction funds and repay bank loans, the com¬
pany in March 1958 sold $15 million bonds and in Jan. 1959 $12
million bonds.
The last equity financing was in Oct. 1956. Capi¬
talization as of Oct. 31, 3958, pro forma for the issuance of bonds
in Jan. 1959, was about as follows:
|
Long-Term Debt
Stock

Preferred

53%

$103
25

(3,464,000 shs.)

$3.70

22.1
11.8

Gross Revenue

$256,243,262

17.1

Operating Expenses

$200,572,847

15.8

$73,119,089

31.0

Net Income

$40,005,407

26.7

Payrolls

$53,370,776

3.9

1,561,874

3.9

Taxes

Total Meters

34
100%

$195

—

$1,268,323,599

NEW

Two steam units at

Total

$2.40'*

(Company only) **

Common Stock Equity

Common Dividend Rate

Earnings Per Share
Gross Electric Plant

% Increase
Over 1957

i958

from Electric Energy, Inc., so that in addition to meeting its own

435,000

PLANT

Huntington Beach, totaling

kw, completed;

additional capacity

under construction totals 526,000 kw.

The

stock record of "CIPS" has been

common

the stock came into the hands of the public

follows since
PERMANENT

in 1948:
Approx.

Dividends

Earned

;

1958_

$2.57'

1957-

Price

Range

$1.68

43-32

2.48

1.60

32-27

1956

2.29

1.60

2.41

1.35

Two

security issues sold for $75,164,950, includ¬

ing

4.78%

35-28

1955

FINANCING

Preferred

Stock

Scries

and

31-24

(4%%) Bonds:
^DIVIDEND

INCREASE

Quarterly dividend raised to 65^ (equivalent to

1.20

2(5-20

1.44

1.20

21-18

$2.60 annually) on December 18, 1958, payable

1.51

1.20

21-18

January 31, 1959.

1.45

1.20

18-16

1.71

1.20

19-14

1.55

L.20

17-14

1948______—

1.75

1.05

15-12

1947

1.68

1.00

1954

1.93

______

1953

________

1952__

____

1951

—

.1950_.—

________

1949__

________

___ ________

In the 12 months ended Jan.
vs.

in
on

BALANCE

$2.51

nomic picture,

logical to expect a continued moderate
uptrend in share earnings through 1961 (subject to irregularity
due to possible equity financing), in view of continued industrial
expansion in the company's area, together with the improved con¬
it

appears

dition of the coal mining industry.

CONSOLIDATED
Dec. 31,1958

ASSETS
Electric Plant

$1,067,263,964

Investments and Other Assets
Current Assets

Deferred Charges

8,394,355

88,934,954

•

■

3,591,176

♦

Capital Stock Expense
Total Assets.

3,396,504

$1,171,580,953

has been selling recently on the New York Stock

The stock

Exchange around 42 (range this year about 44-40). With the in¬
creased dividend rate of $1.76, the yield is 4.2%. The price-earnings
ratio is about 16.3 which compares with industry average of
over

SHEET

31,1959, share earnings were $2.58

in previous 12 months, despite the industrial recession
the first half of 1958, as well as a dip in the credit for interest
construction. Unless there is a substantial change in the eco¬

PER

$3.08 in 1958 and 1957 respectively.
CONDENSED

1.30

1946—

^EARNINGS

Consolidated earnings per share were $3.74 and

18.

LIABILITIES
Stated

Capital and Surplus

Long Term Debt
Current Liabilities

512,568,671
540,464,700
84,497,348

....

Deferred Income Tax Reserve

Mutual Investors Formed
NEW HAVEN,

Conn.—David E.

Rosenthal is conducting a securi-

offices at 1195

ties business from

First Pacific
Pacific Equities

gaging

—

First

Total Liabilities
For

copy

Annual

15,036,103
19,014,131

$1,171,580,953

of Southern California Edison's 1958

Report write: T. J. Gamble, Secretary,

P.O. Box 351, Los Angeles 53, California.

Gilcrest Director
DENVER, Colo.—Major General

en- J.
R. Gilchrist, Administrative
business Vice-President of FIF Manage-

Corporation is

securities

offices • in
the: American
Bank Building. Officers are Roland
from

Other Reserves and Liabilities

lion of Charles Sanborn.

Equities

Oreg.

CLEVELAND, Ohio—Commonwealth Securities Corporation has
opened a branch office in the

firm Hanna Building under tiie direc-

Chapel
Street under the
name of Mutual Investors.

PORTLAND,

Commonwealth Branch

Roeskey President and

Treas-

and G. Martin Blakely, VicePresident and Secretary.

urer,

ment Corporation and FIF Associates, Inc. has been elected a
director of both companies, according to a recent announcement
by President, Charles F. Smith.

SOUTHERN

CALIFORNIA

EDISON COMPANY
Edison Building • 601 West
Los

Fifth Street

Angeles 53, California

The Commercial and Financial Chronicle

(1322)

were

Massachusetts investors Trust Honors

applied

another company.
The SEC at that
the

that

concept

and

sales of

for

securities

involve

"Sale"

assets

did

The

impending Treasury financing is holding the spotlight
although it is taken pretty much for granted that the issues
will be issued in this operation will be concerned
only
with the short-term sector, or the
money market.. In additibn to
a
short-term issue, a certificate, there are opinions around that

now,

which

bond market.

was

securities

in fact distributed

to exempt, or
exclude, from the registration re-a
quirements of the Securities Act
a large number of cases in which
were

issuers to

the investing pub¬

these securities.

Mr. Armstrong said later events ;
forced the Commission to recon¬

the

soundness

of this

levels

that

engraved Paul Revere Bowl is presented to Gleeson (Tige)

Great

Sweet

Grass

(left).

Looking

John A. Carter, Jr., resident partner, Vance,

on are

Sanders & Co., national distributors for MIT shares

(second left)

Staats & Co., pioneer Califor¬

and John E. Cameron of William R.

Oils

of the

most

Calif.

ANGELES,

—

announced that
it had reached the 200,000 share¬
holder mark, placing it among 12
other
companies in the nation

fund,

March

with

this many

shareholders.

An engraved silver Paul Revere
Bowl was presented to Gleeson

(Tige) Payne, the 200,000th share¬
holder and

prominent Pasadena

insurance

broker, by Dwight
Robinson, Jr., Chairman
Trustees

luncheon

P.
of
the

California Club.
Sale of the
to

the

Trust

Mr. Payne was made by John
of William R. Staats &

Cameron

two

Mr. Payne said he

Sale"

planned to

investment

Investors Trust

use

Massachusetts
an

educational

fund for his children.

which

the

and

Mr.

reliance

cases,

rule

dealing

left the

SEC

for MIT shares.

not

involve
hard

statutory

Securities Rule
excluded from

mergers,

exchange for securities. He suggests any changes
by Congress and not by SEC interpretation.
Mr. Lane, former SEC
counsel, defends the rule amendment

Armstrong,

Chairman

Exchange

former

Commission,

the

Securities

and

said re¬
cently the SEC is usurping powers
of Congress in
its interpreta¬
tion

rule-

Mr.

strong

controversial

ter of

Armstrong

"Patently Invalid as a mat¬
statutory interpretation."
a

amendment to elim¬

inate loopholes in the law rather
than attempt to change the rule

Mr.
Lane
defended
the
rule
amendment proposed by the SEC
"a good one" and said "I'd like

interpretive order.

"It's just not a good thing in
development of law to have
administrative agencies changing
legislation established by law."
the

States

Armstrong,

now

Vice-President
Trust

Co.

New

"No

And

"case-by-case"
SEC

Sale"
said

approach
and

merger

rule

al¬

that

the

consolidation

transactions in the last two years
has

"It is for Congress to
legislate,"

Mr.

abolish the

together.

created

"an

unhealthy situa¬

tion."

Mr. Armstrong said.

tive

it adopted." He said he felt
would be unwise and unsound
see

Execu¬

United

York,

Armstrong recalled that,

un¬

der the Securities Act of
1933, sale
of stock in
publicly held

compa¬

nies had to be registered with the
SEC.

Early in the Commission's his¬
tory, he said, a question arose as
to

whether

quirements

the

by going along

increase^ in the bank rate is throwing its weight

the

fighting the forces of inflation, despite the
evident in the-employment
picture. The infla¬

are

psychology has been very much in the forefront for an
period of time now, arid it may be that this inflation

recent

this

action

and

other

higher" real

the

allowing the discount rate to
signs,

estate

such

the

booming

because of V

stock

market,

and

values." "

However, it should be borne in mind that the discount rate
in this country is not a
punitive rate, since eligible commercial
paper'held* by" the" member banks of the system caivstiiUbe dis~~\--'
counted

the

Central

Banks

the

and

proceeds

can

be used

for-

loans, without costing the deposit bank any money. As a
matter of fact, a small profit would be made
on such a transaction

rule."

the

problems

He
the

The

took

to be the way in which the Federal Reserve Board is
going to work against the forces of inflation, that is by the indirect

method

count

SEC1 to

indicated

rule

the

exempted
from
registration in certain mergers or
would

have

Armstrong said "This is just clear
legislation."
He told his audience that Presi¬
dent

Eisenhower,

questioned re¬
appropriations laws
he did not like, said his recourse
would be to go back to Congress
cently

for

about

tive

agency

should follow" when

it wants the law

"The

registration re¬ by a
the Securities Act said.

matter

legislative

changed.
be

solved

amendment," he

near;term

advancing trend.
and

refunding

variety.. -It-would

not

(Special to The Financial Chronicle)

Joins-W»U*r>r|> & Co.* Staff

:
-

ANGELES, Cal.—Spencer
Hiatt and Sam Kappe have be¬

come
connected with DempseyTegeler & Co., 210 West Seventh

Street.

Mr.

Hiatt

was

formerly
with Daniel Reeves & Co.; Mr.
Kappe was with Marache, Dofflemyre & Co.

Paine, Webber Adds

(Special to The Financial Chronicle)

EUREKA, Cal.—John E. Hostetler has joined the staff of Walston
&

Co., Inc., 509 H. Street.

•

Two W'fb J. Ra»*th & Co.
(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Harold
L. Messinger, Jr. and Thomas P.
Miller have become affiliated with
J. Barth & Co., 3323 Wilshire Blvd.

(Special to The Financial Chronicle)

•

LOS
P.
are

should

the

_LOS

change.

Mr. Armstrong said "that phi¬
losophy, I submit, an administra¬

Demnsev-Tegelef Adds

registered when they are involved
in subsequent transactions.
While expressing sympathy with
the
intentions of the SEC, Mr.

securities

consolidations

"clarify

have

Treasury to go .into ..the more distant maturities
big way in its operations because this would oirsh rates"
up
so high that a
change in the debt rate ceiling would have to be
made for sure.
;
The long-term
bonds, which is the capital side of the market, "!
after going off because of the increase in
the CentrM Bank rate; !
have moved up again and are
showing signs of stability at levels
which should hold pretty well for the
foreseeable future.
This J
depends, however, on no long-term government bonds and a
light
corporate calendar, such as we have" been
having."
in

retaining the rule in
the present form.

applications"

willl

be possible for the

its

But it indicated it would

Short Borrowings

market, showing the effects of the higher dis¬
rate, has moved up in yield, and-there are indications that
money

money

issues

posed by this
issue,.,, however,

Commission

be very effective in the long run.

the short-term sector-will continue to show
It is evident that the bulk of the* new

solve

the

that

can

Treasury Must Rely

decision,
an¬
September, to amend

which, however,

The

SEC's

substantially

/■

appears

ex¬

efforts

;

mean

Mr. Armstrong said he hoped
his stand would not hinder "sin¬
cere

However, this recent increase in the Central Bank rate does
that the money market will be
kept on the tight side and
that intermittent negative reserves for the
member banks
of
the system should be expected for the
foreseeable future.
This"*

statutory

limited."

intention

Beer, Richards,

to Banks

Reserve Board

a
reality as is evidenced v
by the large retail purchases that are being made by the consum-'
ing public. It could be that the Federal Reserve Board took its V

these

the "No Sale" rule.

He said the SEC should seek

4 Punitive" Rate

evident that the Federal

issues the amount

nounced last

Congressional

area

with

Sal e"

"No

sponsored

Lane, Haller and ButtenwieserJ
also spoke at the session.

I. Sinclair

with

Securities

difficult

in the law firm of

fi¬
ex¬

Chicago,
that the

rule is

Chester T. Lane, former General
Counsel of the SEC and a partner

perts that met

classes

a
private
organization
publishes legal, labor and
economic information.

group of law¬
yers
and
nancial

was

never

thinking is showing signs of becoming

sale

the

tion

practical effect

matter

which

r m-

told

conference

this is a perfect example of the
way in '
be, keep the money market off balance *
letting it figure out what is coming next."

extended

of which is small, and the charac¬
ter of the public offering of which

by the Federal Bar Association—
an organization of
Federal judges

time

that

powers

unfavorable trend

empted by the act except in the

and regulations.

The

Affairs,

and

consolidations.

in?

the

afternoon session of
briefing conference on securities

laws

ment—and the Bureau of National

securities { in

with

lawyers who are or have been
employed by the Federal Govern¬

governing

mergers

reconcile

the

side of those that

Congress did not give any
to the Commission to add

power

guessing, by

now.

"The

"a good one."

addressed

Board,

short

the feeling was gaining strength in the
money
policy of neutrality was to be followed by the

Not

construction.

and

registration of

111.,

jpf

Jew^4

other

narrow

Sinclair

speech

monetary policy

definitions

adding

unsound

of assets in

ahd

exempted from the registration
requirements.
This is obviously

consolidations and sale

cases

substantial category
of transactions to those expressly

made be done

proposed by SEC

offer

"Rule 133 has the

Recalling early SEC history^ Mr. Armstrong states "Sale" of
was

the

terms," he said.

"Patently Invalid"

System in

created by this member of the Federal Reserve
rate was upped from 2%%
to 3%
a

that

which

Chairmanship in

Former SEC Chairman Cites "No Sales"

security

with

Introducing
Mr.
Robinson / to 1957, that the rule is not a correct
those present at the luncheon was interpretation of the Security Act
John A. Carter,
Jr., resident part¬ provisions.
"The Declaration
that cer¬
ner in the firm of
Vance, Sanders
& Company, national distributor tain transactions therein specified
seems

the "No
"a
mis¬

represented

But he
added that the Commission's prob¬

Reserve

Accordingly, it seems as though there are either differences
of opinion among the Board of Governors cf the
Federal Reserve

application" of the theory.

was

market

Armstrong said that in the

lems

foreign countries.

Federal

discount

thereafter, just

proceeds to

Mr. Robinson noted that MIT is also pointed up the questions of
marking its 35th anniversary this whether the SEC had authority
year. The Trust, which was or¬ to adopt the rule in the first place
ganized in Boston in 1924, has and whether the rule was sound.
shareholders in all 49 states and
Mr. Armstrong said he believes
in
65
different American
terri¬ today, as he stated shortly after
tories

the

monetary authorities.

Co., pioneer California investment
firm, through its Pasadena office.
his

days before the Ceptral Bank-rate-was; raised appeared to indicate
that the powers that be, were not
going to be too stringent as far"
as money and credit was concerned
because of the sizable amount P
of unemployment in the country.
Yet, in spite of the impression '

use."
LOS

Massachusetts Investors Trust, the
nation's oldest and largest mutual

in^^

ope

insiders rather than to productive

nia investment firm (right).

fh^

the Governors

highly speculative stock
investing public without
any of the disclosures which would
be called for by registration, and
divert

to haye■ taken the increase" iii

seems

an orderly
fashion; even though it was a suj^Tise v!;
the part of the monetary-authorities as-faras^
many
the financial community was concerned. The statement bv

move

the

discount rate in

shares of

Treasdi^Jfiriancirig thatAvillbe^ doneTn^th^-sh^i^'i: z1

Higher Discount Rate Taken in Stride

Kroy Oils Limited
describes a deliberately calculated
scheme to dispose of millions of

Investors Trust, by Dwight P. Robinson, Jr., Chairman of Trustees

move

long-term' - rates;

The money market

and

Payne of Pasadena, Calif., 200,000th shareholder of Massachusetts

It might be that short-term rates will
be the same or higher . than!

term sector of the market.

example, the Commission's

Limited

the Treasury does not offer the more
financing, the pressure will be lessened

its

doc-

opinion and order withdrawing
the registration on the American
Stock
Exchange of the
capital
stock

will

because! of the

trine."
"For

fib

long

distant maturities in

lic."

sider

run

not more than 2% years or 3 years will be
in";
the package deal which should be offered tomorrow or the
early v
part of next week in order to obtain about $4,000,000,000 innew funds that the Treasury will need." This kind of
financing
'
will keep the pressure on short-term rates.
V
'
The absence of a long-term obligation in the
coming Treasury *
operation should have a favorable influence on the Government

time, however, its

same

maturity to

said.

practical effect

Governments

By JOHN T. CHIPPENDALE, JR.

security.
"This theory and rule disposed
of
many
serious
practical
and
legal problems, both for the Com¬
mission and for corporations con¬
templating such transactions," he
"At the

Reporter

mergers,

not

Our

evolved

time

such

consolidations

exchange

Thursday, March 19, 1959

mergers,

consolidations, and sales of assets
by one company for securities of

200,000th Shareholder

ANGELES,

Bloem
now

Jackson &
Street.

and

Calif.—Henry

Andrew

with

Paine,

Brichant

J. Frederick Co.

erick

Webber,

Curtis, 626 So. Spring

Opens

BROOKLYN, N. Y.—A. J. Fred¬
ties

Co. is engaging in a securi¬
from offices at 773

business

Driggs Avenue.
proprietor.

Julius Cherny is

•

Volume

The Commercial and Financial Chronicle

Number *5830

189

(1323)
1

Y,
Continued

from

duce

page

ficial

'Everything Goes"
of prices.5
-Inflation at first merely prothe rate at
which prices have; risen, during -duces conditions in which more
the last quarter century in these
people make profits and profits
,ort other, countries
represents a are: generally larger than usual,
major change.
a
/ V
Almost everything succeeds, there
are hardly any failures. The fact
.
Anti-Inflation Fhobia..,- ,. .j;:that. profits again and again prove
.Although there are a few peo- .to be greater than had been expie who deliberately advocate a pectedr;and that more ventures
continuousvhpward' movement of turn out to be successful than is
prices, the-chief source of the formally the case,I produces a
Tnh
*
/
LI.
i?
i.1.'

Its

upward trend
Compared with this
cant

-CI

only

small

the

It is

due

errors

inflation

captives of their

the

after-effects

doses

even

can

staved off only by larger doses of
inflation.
Once it has continued

A 4-.

*«-**

r« r«

■

—

own

accident that the author

n«

views, perhaps lulfllB.W4y
mistakenly
w„w
interpreted, have given more encouragement to these inflationary
propensities than those of any
0ther is also the author of the
•

Rule Needed

seem
to suggest that on balanc
probably some mechanical rul
corresponding to what is desirabl
in the long run and ties the hanc
of the authority in its short ten
decisions is likely to produce
better monetary policy than prii

whose
,M%,

for some time, merely not accelcrating at further will however
create a situation in which it will
be very : difficult to prevent a
spontaneous deflation setting in. aphorism !\that "in - the long
Mm
4-V\Vv- n/-v«4-Am
-£
4-1
*
■
©
^

Mechanical

These considerations would alf

harmful.
It is

prof

counter-measures.

earlier deci-

sions, often forcing their hands to
measures which they know to be
.

sectional

perity for inflation, it frequentl
happens that local or sectional dc
pression produces demands * ~
wholly
inappropriate
monetar

which the supply of money

partic-

because

policy decisions

local

mistake

data to
must
be
adapted
so
that
the
harm
caused by the former will be as
little noticeable as possible.
In
the
long run, however, such a
policy
makes
governments
the

this bene¬

dangerous

harmful

stimulus

ularly

even

which it produces.

effect

other

temporary fillip

cause

long as, and
because, somebody is cheated and
the expectations of some people
are
unnecessarily
disappointed.

Slate-ism

Inflation and

...

than

and it will

ciples which give to the authoi
ities more power and discretic
and
thereby make them

run we

subject to the influence both.,
more

that in order

to be, feared

t6;?; business

without

the

tion, thdir simultaneous discontin

windfalls

But as we do not
know vjhow.,' .to keep pi ices com—
pletely stable and can achieve

preferable.

onlyi by correcting any
imovepjent in either direc¬
tion, the determination to avoid
all deflation at any price
must
result
in
cumulative
inflation.
stability

small

fact

deflation

will

sectional

inflation and
often be local or

that

the

Also

and in this

phenomena

prices being
higher in four
time,: they will
of the factors
their costs to

level correspond¬

occur as part of the
redistributing the re¬
of the economy, attempts

must

form

them, but that there is little we
can
do to cure them once they

cent
eight months'
bid up the prices
which determine
so many per

mechanism

have

prevent any deflation affecting
must

economy

inilation.

Inflation

or sector of the
result in overall

region

major

Drug-Taking

and

is; however, not only doubt¬
ful whether from a long run point
of view deflation is more harmful than inflation.
More impor'+0M+
io
in
onnthpr spncp intant is that in another sense inflation is infinitely more dangerous
and needs to be more care¬
It

Of the two
opposite faults it is the one much
more likely to be committed.
The

fully guarded against.

for^ this

reason'

that

inflation

generally* pleasant while it pro¬

ceeds, while deflation is immedi¬
ately and acutely painful.6 To be
more
afraid of deflation than of
inflation is like being more
of

afraid

abstention from

excessive

would

otherwise

who

itself

their

continuation

with

of government and private busi-

effect of infla¬
tion will thus operate only so long
as it has not been foreseen and as
soon as it comes to be foreseen,
its

ness—the nnth nf Inaci rAcistnnpp
r»psc—thp path of least resistance
and sometimes
also the easiest

The stimulating

only

worry

particular situa¬
tions than with general condi¬
tions, and more with short term
than with long term problems. It
is regularly the easy way out of
many temporary difficulties both

efforts, there
will be a
higher proportion than usual who
.,.<11
->• V • .'•••»
will make' losses, *
v
Unexpected Rise Crucial
;

explains why it is so
tempting and why it increasingly
becomes
so
as
policy concerns

been

have

time

depressions

operates

forced to change the direction

in/ The

unfortu¬
nately when ' they
are
furthest
from the mind of most people.
This manner in which inflation

pect. If prices then in fact rise no
more
than had been expected,
profits will return to normal and
the proportion of those making a
profit also will fall; and since
during the period of exceptionally
large profits many have held on

set

about

ing to the future prices they ex¬

sources

political pressure and

the more
cWsequences* of"current

in¬

method

get

over

way.7
a

help

the economy to

all the obstacles govern¬

policy

ment

placed

has

its

It is the inevitable result

policy which regards all the

much

deflation

the

much

politically

and

difficult

than

same
more

Halsey. Stuart Group
Offers Equip. Tr.
Halsey, Stuart

associates

time

technically so
easily prevented, the

issue of

stress of the economist should be
on

inflation.

soon

makes

itself

efforts

ate

will

combat

aroused—indeed

elusive.
The certificates were

that

should

will not be taken when

measures

neeueu. Wniie nODOQy IS ilKeiy IO
"Full
Employment,
Inflation, Review of the
Affairs, Melbourne,
Victoria, IV, 1950; and F. A. Lutz, "Costand
Demand
Induced Inflation", Banco
Nazionale
de
Lav or o
Quarterly Review
XLIV, 1958.
8 J. M. Keynes, A Tract on Monetary
Reform, London, 1923, p. 80.
my

3.60%

priced

4.25%,

Issuance

cording to maturity.

certificates

sale

the

ject

authorization of

are

the

terstate Commerce Commission
The

issue

secured

essay

and

Institute

from

yield

•

7 Cf.,

Planning,

amr

often when it is

local and necessary process
not
be
prevented.
There is more danger that the
cry
of "deflation!" will go up
much too early than that counteronly

semi

1, 1959 to April 1, 1974,

Oct.

felt, all the deliber¬

equipment trust c

maturing

cates,

deflation

Co. Inc. a

March 13 offered

$4,440,000 Illinois C

RR.

the dangers of

predominantly

mom

discuss here.*

cannot

the •

circumstances

This, however, raises issues whi

prevent

because

and

their

overestimate of the urgency of

recognizing

inflations which regularly precede chologically

Once they count

at the same rate.

ficulty

vicious and rightly feared process demote
in Which the decline of some in- , measures and to ftie inevitable
COmes leads to the fall of more in- preoccupation of practical men
comies, and so forth. From all we an(j particularly politicians with
know it still seems probable thati.^e immediate problems and the
we should be able to prevent snri- achievement of near goals
ous depression by preventing the ^ Just because nedI &°dlb* psy¬
01 inflation, is

their, employees
-the expectation that they will'
goo^ share in the general prosperity.
This will last, however,
only until people begin to expect
that' prices will continue to rise
to keep

anci

may'well produce that

uation

keep on the safe side, a persistent paused ny the unexpected general
error in the- direction of inflation ' rise in prices are enabled to hang

view due both to the greater dif¬

steel box

all

700

cars,

Public

cost

$5,940,000.
in

Associates

the

W. Pressprich

offering

& Co. and

Master Hutchinson & Co.

maintain the
same degree of prosperity.
If in
such a situation prices rose less
than expected, the effect would be
^

the

will

rate

creased

same as

that of unforeseen de¬

feating than of the effects of pver- fxatio"n. Even if they
There is little need, to
-precautions
against
any

eating.
.take

miK,h

rose only as
generally expected,
*
provide the

was

practice,-the bad effects of which
will be immediately and strongly

temporary stimulus but show up
the whole backlog of adjustments

felt; but there is need for such
precautions - wherever 'action
which,is immediately pleasant or

which

relieves

will do

temporary

so-

at. the price

difficulties
of a much

greater harm that will be felt
only later. There is indeed more
than merely a superficial similar¬
ity between inflation
taking with which it
been compared.
'

postponed while the

were

special stimulus lasted. In order
that inflation should continue to
jjave
initial stimulating effect,
it would have to proceed at a
rate that accelerated always faster
than

was

foreseen.

both

produce their peculiar effects by
causing unexpected price changes;
and both are bound to disappoint

should

become perfect,

ever

and

that long term and
short term
expectations should
become equally adjusted; nor can
expectations twice in opposite, di- we g0 jnt0 the different effects on
/rections.
The first time is when current production and on invest¬
prices prove to be higher or lower ment which are so important for
than
they were expected to be a full explanation of industrial
.and
the second when, as must fluctuations. It is enough for our
sooner or later be the case, these
purpose to know that the stimu¬
price changes come to be expected lating effects of inflation must
and
cease Tto
have
the effect cease to operate unless its rate is
especially

which ' their

unforeseen
occur¬
difference be¬

1 The

rence

has.

tween

inflation «and

that with the former
<

disappointment

deflation is
the pleasant

comes

first

and

later, while with
deflation the first effect on busi¬
ness is depressing. 'The effects of

the reaction only

both, however, are self-re versing.
For a time the forces which bring
about - either
tend
to
feed- on
themselves and the period during

that

and

accelerated,

progressively

certain

proceeds

un¬

of
the
adaptation is
impossible,
become more and
more important.
The most impor¬
favorable

consequences

fact

that

tant

of these

complete

is that the methods

accounting

only

HIGHLIGHTS FOR 1958

make

rest

tities of

pected

cost

faster than ex¬
thus be prolonged.

may
unless price movements con¬

But

for

tinue in the same direction at an

would

accelerating rate, expecta¬
tions must catch up with them. As

Real

ever

soon

acter

happens, the 'char¬
of the effects changes.
as

Trhis

this

statement

i, based

number of wholesale prices f^r
see

Bureatt

Series,

Labor

Washingt-n,

the index
the u. s.;

Statistics
s.

Chart

Government

Printing Office, Chart E-tl.
6 Cf., W. R'
Welfare, Freedom and

inflation,

1957.

soon

costs,

Wafer in storage at
above the

would

soon

cease

Net

Dividends
Common

thus

can

Gross

1958

preferred shares............
class "A" common shares

paid

per common

1957

$ 70,909,087
13,812,825
1,025,000

$ 67,249,219
13,062,470

758,156

657,692

1.62

1.56

THE
i

1,025,000

65Vzi

68f6

7,419,773

7,288,241

$437,017,945

shares outstanding Dec. 31.......

$404,130,103
and
Limited.

the consolidation of the accounts of The Shawinigan Water

St. Maurice Power Corporation and Southern Canada Power Company,

English or French, can be obtained by
office, P.O. Box 6072, Montreal, Canada.

of the 1958 Annual Report, either in

writing to the company at tts head

SHAWINIGAN WATER AND POWER COMPANY

SHAWINIGAN BUILDING

•

don into ,he com-

early part of 1958 reduced operating
profits. Consolidated net earnings of the
Company and its wholly-owned subsidiaries were $865,205 compared with
- $1,061,320 in
1957. Dividends totalling
.$229,331 were paid to The Shawinigan
"Water and Power Company for the year.

plant investment.

A copy

pro-

Power Company,

merely

never

NOTE: The above figures reflect

Inflation

41.2 %

Earnings per common share

to be ascertain¬

reinvested

was

th£ int'

midyear the new caustic soda and chlorine
plant at Shawinigan was completed. Higher
depreciation charges, start up charges for
new plant and
lower sales during the

earnings.

Dividends

tion more and more would be
taken in taxes as profits that in
be

end

pany's operations of the assets and plant
s> Maurice Chemicals Limited. Also at

operating revenue

Dividends

conventional or gen¬
acceptable - method.
And

should

year

•_

the

FINANCIAL HIGHLIGHTS

income

to maintain Caoital.

the

long-term average.

Total

™ith PreSent P"n«PleS °f
facf

capacity by 18.3%.

able by any

erally

SHAWINIGAN CHEMICALS LIMITED

Total plant capacity was increased during

*,07

Capital Expenditures totalled $34,999,610
compared with 440,069,521 in 1957.
These included $18,880,854 for the 246,200-kilowatt Beaumont Power Development which was brought into full production in December, increasing our generating

provide the
planning
all
meaning.

profits,

of power.

lose

Chemicals Limited.

Operating expenses increased by 4.6%
due to higher wages and salaries, increased
provision for depreciation, higher taxes
on income and an increase in purchases

business

all

be sold for

con-

1956 Employee Stock Purchase Plan, conversion of Sinking Fund Debentures and the
purchase of Heyden Newport Chemical
Corporation's half interest in St. Maurice

bringing the total served to 337,747.
.

necdon with sales to employees under the

production of steam in electric boilers.
Newcustomersconnectednumbered 11,398

that

accounting

basis

energy to

shares in

mon

major industries were lower, but
residential, farm, and commercial

secondary

notes

li\

and issuance of 131,532 additional corn¬

was

increased by about 10 %. Favourable water conditions enabled large quan-

sense

which prices move

Electricity

customers

accelerating
rate, the techniques of capital and
rising

power to

long as the value of
is tolerably stable.
With

prices

Sales

from

% higher than in 1957. Total kilowattflours sold were up 6.4 %. Sales of primary
5.8

m0ney

of $5,000,000
short-term

which all busi¬

decisions

ness

■

Revenue

new

financing was carried out except for the

REPORTS

sales to

We cannot consider here all the

and drug- complications which make it im¬
has often possible that the adaptations to
an
expected
change
of prices

deflation

and

Inflation

Financing: No

------this would no longer

MONTREAL, CANADA

The Commercial ancl Financial Chronicle

(1324)

Thursday, March 19, 1959

Phila. Mini. Men

Bank and Insurance Stocks

Elect New Officers
PHILADELPHIA, Pa.—Charles
E.; Hoerger
of
Merrill
Lynch,
Pierce, Fenner & Smith, Inc. has

By ARTHUR B. WALLACE

This Week

—

Insurance Stocks

been

elected

Small Accounts Can Bring You Business

President of

in the insur¬

Notes of interest

industry
would probably
comments on the new
bill in Congress aimed at prying
more
taxes from the life com¬

ance

with

start

panies.

Despite the strong oppo¬
that the bill is meeting,

747,000, or 9.7%. There was a
statutory underwriting loss of $1,287,000,
a
considerable decline
from the loss of $7,019,000 in 1957.
Net

6.5%

was

income

investment

294.000

$22,-

Secu¬

higher.

the

Municipal
Club

Bond

Time

asset

Philadelphia
to

for

serve

the

ensuing

M r.
appreciation of $69,843,000 Hoerger suc¬
indications are that it will pass in compared with a minus $20,460,- ceeds
James
some
form.
Congress is taking 000. The parent company just got W. He ward of
the attitude that the additional into the black with an underwrit¬ Butcher
&
ing profit margin of 0.44%.
It Sherrerd,
revenue is needed, and also that
was 101.75% in 1957.
the life companies have not been
whose
terra
carrying their share of the tax
North River Insurance also got expired.
load.
We will not attempt to
Other
offi¬
into the black on underwriting by
weigh the correctness of that con¬ a scant
Charles E. Hoerger
margin: a combined loss cers elected at
tention.
the annual
and expense ratio of 99.71% vs.
The
bill, which has already 104.16% in 1957. They showed an meeting and election were: Ronald
passed the House, would increase underwriting
gain
of
$47,349, W. Poole of Poole & Co., ^Vieethe tax take from the life com¬
which compares with a loss of $1,- President; Alexander B. Brock of
panies by estimates running from 086,000 in the preceding year. Stroud & Company, Incorporated,
$200,000,000 to $240,000,000. What¬ There was a moderate gain in net
Secretary and C. Carroll Seward
ever
the
amount, it would be investment
income, and, North of Yarnall, Biddle & Co., Treas¬
spread over a large number of River being a relatively large urer. i
companies, for there are probably holder of
equities, the gain in the
The following were elected to
somewhere in the neighborhood
value
of investments, $9,514,000
the Board of Governors: James W.
of 1,200 life companies, a big ma¬
was hefty compared with a minus
Heward for a one-year term; and
jority of them being small. The
$3,357,000
in
1957.
As
North John L. Bradbury of Dolphin &
life part of the industry has been
River has a heavy concentration Co.
and
John
P.
Dempsey of
operating on a make-shift tax of its writings in fire and allied
Kidder, Peabody & Co. for twoplan, for which the proposed leg¬ lines, and much less in automobile
sition

islation will be

dividend of 4% later in the year.
American

creased

in¬

Insurance

cash

its

payments from
25 cents to 30 cents quarterly.
Premium grates

limb.

Florida

continue
there

pro¬

posed a large boost in auto liabil¬
ity rates, averaging about 27%.
Various

revisions

resulted

moderate increases in the rates

insurance

The

tinue to have

increases.

just

rejected

automobile

companies

con¬

hard time getting
Connecticut has

rate

bid

rates

higher

for

"excessive

and

unfairly discriminatory." The
Insurance Commissioner did give
the carriers a possible out, as he
their

asked

bureau

file

re¬

utomobile lines in

Maryland ancl

ermont.

Hartford
ection

Steam

Boiler
issue

soon

In-

&
a

stock

In
New York State the new
Superintendent of Insurance also
rejected a request for higher au¬

tomobile rates.
that

the

crease

volume, with earned

about 3%. Statuof $1,178,000 compared
up

It will be recalled

loss

ith

$3,775,000 in 1957.

ined

underwriting

01.1%

well

was

1.8%.

here

below

Federal

incurred

fas

deduction

unused

some

1,650,000 that will be applicable
future

his of
ears

income

course

tax

liability,

arises from several

of bad

underwriting results,
general throughout
industry, particularly when a
is

izable

volume

written.

Earnings

versus

were

33 cents in 1957.

Un-

capital gains at Dec. 31,
958, were $10,826,000, whereas a
earlier there

was

unreal-

capital loss of $3,777,000. >

Hartford

ata)

tion-may

result

than

crease

decision.

rates

New-

was

in a lesser
applied for.

in¬

ANGELES,

Nozawa,

Hiroshi

Harumoto

Calif. —Kenji

Kanada

Katayama

and

are

now

with Nikko Kasai Securities Com¬
pany, 258

East First Street.

Fire

recorded

volume of net

(consolidated

sharp

increase

Special to The Financial Chronicle)

SAN
ert A.

FRANCISCO, Calif.—Rob¬

Walston

Co.,

gomery Street.

and

Donald

affiliated

Inc.,

265

with

Mont¬

of India Ltd.

Crindlays Bank.Ltd.
Head Office.

BISHOPSGATE, LONDON, E.C.2
London Branches.

13 ST. JAMES'S SQUARE. S.W.1

Members New York Stock

Exchanft

Members American Stock

Exchange

180 BROADWAY.

NEW YORK 5, N. Y.

Telephone: BArclaj 7-8500
Bell

(L.

Teletype—NT 1-1248-49
Manager Trading Dept.)
Specialists in Bank Stocks

A. Glbbs.

companies whose shares

are

either listed on the two exchanges
in New' York or traded through
ADRs

the

Over-the-Counter

market.
The New York Society of Secu¬

rity Analysts is
ganization
of

professional

or¬

Insurance

Bankers

Dept.:
to

Parliament

time and energy involved.
If every salesman had a clear
idea of the high operating over¬
head that is involved in running
even

small investment firm to¬

day, he would think twice before
he wasted his time, and that of his

firm,

business that

was unpro¬

the

salesman's

ductive.

From

viewpoint he rarely spends
than

hours

two

talking

with and selling

clients.

The rest of his time is devoted to

travel,

study,

counts.

Both

servicing
important,

but

I think that two hours
of

amount

devote
of

day is

appraisal

generous

very

the

time

many salesmen
actual production

the

orders.

Multiply this by 240
working days a year and you have
actually 480 hours a year devoted
to actual selling and business pro¬
duction.

Street.

S.W.1

the Government in: aden, ksnya,

uganda, zanzibar ft somaliland protectorat1

Branches in.
INDIA, pakistan, ceylon, BURMA. kenya,.
tanganyika. zanzibar, uganda,
aden. somaliland protectorate,
northern and southern rhodesia.

Another

$20,000

man

can

roughly estimate the value of his
time at about $85 an

devoted to selling.

hour actually

Anything that

takes time away from the produc¬

veloped

profits

Volume

for

the : m u tual

salesmen

obtain

who

fund

tracts

can

radiation.

obtained

Itr is

helpful if

fi.

initial

employee of a large
organization and, with this focal
point as a starter, many new con¬
alsov

through

even

key employee

V'.'V.r;

can

sold and, if he or she is one that
has the respect of others in the

organization,

of orders

be obtained.

can

•1.

group "i ?.$&:
This is Hill

substantial

particularly lucrative method of Y.riq ■
obtaining volume from a large nv\

number

small

orders

the ■odi.

and

sales

plan can be used primarily
by those salesmen specializing in
the

sale

Monthly

V-

-or.

Investment

The salesman of general market
can
also radiate from

"-V

securities

key employee and sell

funds
be

this

too

time

orders
and

will
his

can

mutual

This

manner.

can

doing. Then send
by mail, enclose pro¬
spectus and follow by telephone.

■■vii'L
:

telephone. Secure the good¬
of any customer who likes
plan and let him tell others

the

.:V

■

consuming unless
i '4
obtained by mail
0 v?

about what he is

•

'iO%
;

data

<<<:

be done if the original rec¬

can

ommendation is strong.

Opens Investment Office
(Special to The Financial Chronicle)

something to be

SAN

JOSE,

Jame

ward

Small Accounts Will

-.-V

Plans.

corrected and eliminated.

Some

area

order from

tion/ of business that is not ade¬
quately compensated for by ade¬
quate

Sold to

obtaining sub¬ ■rut
stantial business is now being de¬ V?,t.

ac¬

and
are

Investors

actually

day

curities

for

retirement

534

Calif. —Carol Ed¬

conducting

business

from

Dudley No. 1.

se¬

offices

Mr. Jame

was

formerly with Wilson and Bayley.
:4

Lowell Director

rfi
(OK

BOSTON,

Mass.—At the 136th
meeting of the Massachu¬
setts Hospital Life Insurance Co.,
trustee for the Massachusetts Life
Fund, John Lowell was elected a
annual

sent

mutual
several

the

office

invest¬

has

his friends at

university where

and

funds;

tee

income

ment

he
he

where

teaches
works.

and

railroad
States

corporations
speak

the

luncheon

been estimated that this group af¬
fects the investment of billions of
a

year.

American

The

analyst

investors

the

radiation

receive from

years.

him

was

and about

months

Foundation,

the

Bbston

also

Lying-in

Joins Alexander Kleine

chat

about

his

invest¬

de¬

call from this customers who told

through the gathering of informa¬
tion and the appraisal of its pros¬
pects.
In this work, he usually
makes a "field trip" to the cornpay under study, where he meets
with management, inspects plants,
views products and discusses

she

that

sold

his

mother-in-law

real

some

wished

ing
never

and

had

that

invest

knew

that

mother-in-law,
that

estate

$100,000 in
high grade income produc¬
securities.
The
Salesman

some

had

this

let

man

had

alone

one

investment potential

$100,000.

points to

Midwest Stock

With

Possibly

this

too

lesson—don't take any¬

Exchange.

Mitchell, Hutchins

ac¬

This salesman was always
pleasant and they became friend¬
ly. The other day he received a
him

berg has become affiliated with
Alexander Kleine & Co., 120 South
La Salle Street, members of the

(Special to The Financial Chronicle)

every three
customer would call

this

and

small

very

\;v.t

(Special to The Financial Chronicle)

CHICAGO, 111.—Marvin Green-

once

ments.

termine the present and potential
market value of stocks and bonds

CHICAGO, 111.—Jack
son

now

with

G. Swan-

Mitchell, Hutchins

Co., 231 South La Salle Street,

members of the New York and
Midwest Stock Exchanges. He was
with Bear, Stearns & Co. in the
past.
I

•

•'

...

Jack Dusapin Opens

(Special to The Financial Chronicle)

BOULDER, Colo. — Jack P.
Dusapin has opened offices at 506
Juniper Avenue to engage in a
securities

business.

formerly with Columbine
ties Corp.

was

Securi¬

thing for granted in this business.

on
Friday, April 3 on a K.L.M. He might have asked about some
Royal Dutch Airlines chartered referrals if he had thought about
plane on this first European field
it; even though his account was
trip of the New York Society.
During the 24 day program, the very small. You never know the
analysts will visit England, France, status of a man's mother-in-law

Italy, Germany and Holland.

College.

Hospital.

him

as¬

The analysts, representing some
30 financial institutions, will leave

Franklin

Technical Institute, and

treasurer of

profitable and it does not take

count

the

Wheelock

that are as in¬
telligent and pleasant as is he, and
is

Franklin

knows people

more
than
2,400 too much of my time.
representing our lead¬
I
know
of
another case that
ing banks, brokerage firms, insur¬ happened several weeks ago in
ance
companies and investment my office. One of the salesmen
funds.
Top
executives
of
the had a small account with whom
leading industrial public utility he had become friendly over the

future plans.

STREET, S.W.1

Shipping and Travel Depts.: 9 Tufton St., S.W.1

Laird, Bisseli & M»eds

—

dollars

BANK LIMITED

54 PARLIAMENT

Small

the national product of the par¬ transaction
if so by all means
ticipating countries by 1970. This discourage the account as politely
growth potential has heightened as possible.
I have handled the
director.
Mr. Lowell is a vice- ,;ii
'
activity in New York markets of account of one young man for
president
and
member
of
the
American Depositary Receipts of about five years and it has been
Trust Investment
Committee of
foreign concerns. The ADR is a a decided pleasure to work with
the Boston Safe Deposit and Trust
certificate which enables the him. We have built up his capi¬
St
Company.
Some of his affilia¬
American investor to own shares tal
carefully
and
he
is
well
tions include directorships of S,
of. foreign companies without the pleased. All transactions are han¬
S. Pierce Co. and of the Interna¬
burden
of
currency
exchange, dled by telephone.
He recom¬
tional Grenfell Association, trus¬
registrations and tax restrictions. mended his wife's parents to me

sists

Amalgamating National Bank

the amount

and

receive will not be
compensate for the

you

adequate

small

judgment is nec¬
some- people
are

Send You Business
exploration into the
dynamics behind the balance
I have made it a practice to
sheets and earnings statements of welcome all customers
large or
these European concerns.
small unless I see that an account
It is anticipated that the Euro¬ is
going to be a time waster.
pean
Common Market develop¬ Sometimes you can determine this
ment will result in a doubling of before
you
complete your first

meetings of the Society five days
a
week during the year.
It has

now

wasters

business

you

hand

are

Fraser

time

that

time

extra

because

essary

have.
essential

clientele

Good

Funds Are Being

important
can

often

some

accounts.

tive value has also motivated this

Request

these

Hugh

21 Leading Bank

that

Clark

and

Bulletin

belief

United

NATIONAL AND GRINDLAYS

Stocks Outside NYC

The

building

devote

most

shares may offer greater compara¬

Baliock, Willis E. Mathews,

premiums, $37,-

Earnings Comparison

securities.

the

salesman

members

Four With Walston
•

80 members of The
New
York Society of Security
Analysts, Inc. will visit more than
thirty leading European compan¬
ies because of the growing interest
of American investors in foreign

pean

Special to The Financial Chronicle)

LOS

This April,

The Analysts will, therefore, limit
their visits on this trip to Euro¬

Join Nikko Kasai
•

automobile

ealized

ear

adverse

fairly

*nes
2.02

his

for fairer

case

York is not lost yet; reconsidera¬

tax

operations,

estimated

arry-forward

The

1957's

income

1957

The comratio
of

present

reconsider

Analysts on
European Field Trip

first

schedule.

vised

Superintendent's
ividend of one new share for predecessor had turned down a
ch three shares held.
Republic request for more realistic rates
f Dallas has issued a stock divi(i.e., more realistic in the light of
end of one new for each 13 the
unreasonably
high
j u ry
eld.
awards and the big increases in
repair costs in the cases involving
Glens Falls Insurance showed a
automobiles) was ordered by the
ore
satisfactory report than
New York Appellate Division to
hat of 1957. There was a modest
remiums

Rate Increases Lag

stock

better show¬

ing than the essentially casualty
writers.

Analysts*

Notebook

American Surety plans

terms.

casualty lines it is to be expected
that it would make

From Insurance

rities

year

substitute.

yea

any

Nevertheless

(financially

otherwise).

C. L. Eops Opens
HOUSTON, Texas—Charles
Epps is
business

engaging
from

offices

Flamingo under the firm
Charles Lee Epps & Co.

Lee

securities
at

5746

name

Volume

5830

Number

189

Continued from

first

The Commercial and Financial Chronicle

(1325)

buy stocks

page

50%

trials

would

erages

the

be¬

hold

still
two

difficult to detect.

two

and

Four

ring, of
a

course, to the market,as
whole, and I realize that some

From

issues which have not been overmay

y■/

have'

favor

than

stocks' rather

common

bonds -for

most

the

intermediate

greater than

investment

that equities
prices where

programs, provided
can be acquired at

risks

■

are**.ife-

the correspond¬

are

ing possibilities for capital gains.
Under current conditions,
how¬
when there appears to be a
greater chance ! of a decline of
about 25% to 50% in the market
.

ever,

whole than there is of

ther
to

advance

much

fur¬

10%, I think it would be wise

to place the

emphasis

vestment

new

funds

the in¬
.

either

tax

exempt bonds or short-term
corporate or government bonds.

For individuals in the

higher tax

brackets, the yields on tax ex¬
empts of fairly good quality are
now three or four times the yields
obtainable

equities,

after

al¬

lowance for taxes.-1 would favor
tax exempt bonds partly because
the international situation carries

the
ever-present threat of the
necessity for raising taxes to keep
the budget in approximate bal¬
■' V,;..'.:;:

ance.

the

case

corporate

and

whole is

now

selling rather

Over the intermediate pe¬

riod, or for the next 12 to 18
months, the trend of interest rates
is likely
to depend largely on
whether

keep

the

can

Federal budget in at
balance, and thereby

the

least

Administration

near

limit the supply of new bond is¬
sues and the spread of inflation

business activity
should decline substantially dur¬
ing the last half of this year, the
trend of long-term bond prices is
likely to be upward for at least a
few months, as institutional and
psychology.

other investors switch from stocks

yielding 2% to 3% or less, into
offering a return of 3V2 %
or
more.
Over the very longterm, the trend of interest rates
will probably be irregularly up¬
bonds

ward

because

sistible

of the

almost irre¬

pressures

add

the

government debt every time busi¬
ness activity declines by as much
as

10%.

news

ness

before

still

excellent,

and

downward readjust¬
ment in activity gets under way,
there
would
appear
to
be
a
any

chance of
intermediate
peak
greater

market

important
the stock

during the early months
than of a continued

this

year

trend of any

upward

portions.',

sizable

pro¬

probably will continue to be be¬
cause of the growth in popula¬
tion

the

hand, and the
reinvestment of earnings by the
vast majority of corporations in
most years.
It should be kept in
on

mind

one

these

that

considerations

present in 1929; even though
the Dow-Jones Industrial Average
was
to subsequently decline by
more
than
80%
within
three
were

and in 1937, when the vast
majority of stocks were to fall
back by 50% or more before they
were to recover to their previous

years;

peaks, some nine years later. I
personally think that even longterm investors should not ignore
the
cyclical outlook in making
new
commitments, not only be¬
cause purchases made while stocks
are

the

lower

range

the

ever-recurring popularity-unpop¬
ularity cycle
greater

can

capital

long-term;

gains

much

over

but also because

much easier

tions under

result in

make

wise

the
it is

selec¬

adverse business and

Industrials

Dow-Jones

Viewing the Market Through
Electronic Eyes

lose

all

of the

net gains made subsequent
to the 1957 highs, as a minimum,

General

lest you

67;

facts.

Transistor from 17% to
Sonotone from 5Vs
to
15.
decline to an average yield basis Over-the-Counter
High Voltage
of 5%, where the yields would has gone from the 20's to 66; and
still be only about 1% more than Milgo from $2 to $62 in less than
those available on long-term gov¬ three years.
All you have to do
the

end

the

year.

ernments, the Dow-Jones Indus¬
Average would have to fall

duration, but I think
this should be expected, in view
of the manner in which the down¬
ward trend in 1957 and

reversed.

early 1958

Our

political eco¬
nomic
planners, for obvious
reasons, did not permit the read¬
justment to continue long enough
was

lead

accumulation

demands; and the re¬
newed
upward spiral in wages
resulting from the pattern set by
long-term wage contracts of U. S.
Steel
prevented
industry
from
reducing
prices
sufficiently
to
bring about an increase in the
buying power of those with fixed

pent-up

incomes.

Stocks in general are

(2)

months

immediately
close

are

the

ahead
peaks

reached at around the major tops
in

the

including 1929,
Specifically, our

past,

1946.

1946, when price controls

about

were

1937
pro¬

jections of the probable 1959 earn¬
ings for each of the 30 issues
which make up the Dow-Jones
Industrial Average indicate that
the

and

abandoned

pent-up de- ■!
goods because of the
wartime production restrictions, )'t
for

mands

tremendous

had

I recognize, of course, that there
several supporting factors in

are

market besides the

the stock
few

ex¬

of inflation, but
appear to be of a

fears

these

fundamental

latch

buy

We've

fad

mentioned

instead of

pretty
solidly positioned electronics com¬
panies today.
There are plenty
meritorious

some

ones

onto

these electronics

nature.

UICO
9^?

Institutional

buyers may be gradually absorb¬
ing the available supply of certain
stocks, but purchases of equities
by pension and similar funds are
probably running at an annual
rate of only about $1 billion a
year,

small

additions

the

resulting

from

family holdings,
of

fraction of the
supply of stocks
liquidation
of

corporate sales

shares to provide for

new

ex¬

mutual
funds
are,
in the last analysis,
merely an indirect reflection of
the demand for stocks by the socalled "public," who are gradually
being
sold
on
the
merits
of
professional management as com¬
pared with active speculation.
by

Purchases

pansion.

believe

the

that

SALES—Revenues
Kwh sales

strongest

factor in the stock
market is probably the fact that
the public has tremendous bank
deposits and holdings of govern¬
ment bonds which, theoretically,

$122 million in 1958. Electric

totaled

7% above 1957 and over 3 times those
record increase of 27% in gas sales brought

were

of 1950. The

them to 2Vi times the 1950 level. Over half of the
was

used for space

average

share, 18^

per

least,

common

can

Wall Street

lieve

that

siphoned

stocks.

There

into

common

these
we

between

earnings

years.

find

and

reported

for

Going back to 1929,
the peak for that

that

also equivalent to about
17 times the earnings which might
have been reasonably anticipated
at
the
time
the
highs
were

year was

recorded.

(3) Stocks
able

area

are

from

also in a vulner¬
standpoint of

the

yields, both in actual terms and in
relation

those

obtainable

fixed-income securities. The aver¬

yields on stocks today are
a little more than 3%.
As
measured by the Dow-Jones In¬

age

only

dustrials, it has been possible to

were

$1.62

per

stock to $12,108,000.

TERRITORY—The population of the area served is esti¬
mated

by LILCO at 1,880,000 persons. The

since 1950 has

placed this

area among

88% growth

the fastest growing

in the country.

professionals who be¬
would be smart or

HIGHLIGHTS REVIEW

good business to try to keep the

equivalent of almost 17 times this
year's probable earnings. The bull
market highs in 1937, 1939, and in
the

stock

the amount earned in

some

are

ported for 1958. This means that
at around the 610 level, the DowJones Industrials are selling at the

were

oyer

22% increase in 1958 brought earnings avail¬

able for the

speculative fever going until the
public runs out of money, or the

1946

common

supporting

composite income for this
group of stocks will amount to
approximately $36 a share, or
about 25% above the earnings re¬

times

total

heating.

EARNINGS—Earnings for the
1957. The

Warns Professionals

cur¬

rently selling at prices in relation
to earnings in prospect during the
which

also

aggerated

■>;

;

rather brief

and

Turning to the stock market, it
might be observed that the very
lopg-term trend of stock prices
has
always been upward,
and

Continued from page 4

Even

I realize, of course, that my pro¬
government bonds, where the in-J
terest income is fully taxable to jections would mean that the cur¬
the investor, the outlook is not too rent business recovery is to be of

clear.

every

prejudice, in,

definite

1920.

trial

Offers Investment Advice ,7 ^

least

didn't

one
or
two of get to talk about — Epsco, Elec¬
(the right ones) tronics Associates, Analogue Con¬
than in a buying area, for a num¬
back to around the 1957 low of in an early stage and you'll be
trols, Ampex, Magna vox, Ray¬
ber of
reasons.
These may be
about 420.
shopping for cruises before you theon, Texas Instruments and o*
summarized as follows:
;...
course Zenith which is very
(4) Stocks would appear to be know it!
busy
(1) It appears overly-optimistic, in a broad
The problem here is obviously in the market chasing IBM!
selling area on the basis
!
to my way of thinking, to expect
of the record which shows that to
search for the under-valued
Delve into this electronic indus¬
the current recovery in business
stocks if they can be found; and
cyclical
peaks
are
generally
try and you're bound to coine
activity to carry past the second
recorded
when
equities are so hot to pay 40 or 50 times earnings across stocks with a
magnificent
quarter of this year. This conclu¬
because some eager young
very popular that it is necessary just
sion is based in part on the same
growth trend. But, in your win¬
to
ignore
past relationships to company is going to make an elec¬
nowing, stress management, repu¬
type of reasoning which led us to
earnings and dividends to justify tronic homing pigeon compass for tation for effective research and
go on record in the spring and
new
purchases. This is certainly some wayward rocket. Some of for
quality of products. And pre*early summer of 1957 with the
the case today. On all sides, we these
"hopefuls"
are
going
to fer the
forecast that we should expect a
companies that show talent
make the grade in a big perma¬
are being told that stocks should
in
somewhat greater decline in ac¬
merchandising
their
wares.
be purchased for inflation protec¬ nent way, either on their own, or This "better
mousetrap" theory ia
tivity by not later than the spring
via the merger route. Others are
for the birds in the electronic age!
of
1958 than
was
witnessed in tion, with little attention being
paid to the fact that with the beautiful market moths of the
either 1949 or 1953. As was true
average
equity selling at more moment, that are going to get
in
N. C. Roberts Branch
1957, production is running
than double the highs reached in singed
themselves and singe a :
above consumption; we no longer
EL CAJON, Calif.—N. C. Rob¬
1953, we have already discounted few stockholders in the process.
have any pent-up
demands for
erts & Co. has opened a branch of¬
a much greater inflation than may
Every time an industry gets to be fice at 127 East
goods; foreign competition is in¬
Lexington Avenue
be seen during the next five or ten
a
market darling, as electronics under the management of John Q.
creasing; while the Federal Re¬
might also be well to
serve Board is following a policy, years. , (It
Desbrow.
\ \
are
today, you must be vigilant
recall that this inflation argument
of
gradually tightening
credit,,
was very prominent in the Spring
rather than a deliberate easing of
of 1937, just before stocks were to
credit. Since stock prices usually
decline by more than 50%;' and
reach their, peaks while the busi¬
a

downward

-■

cyclical point of view,

I believe that the stock market as

resist any general
trend, and at least re-¬
cover
fairly promptly following
the completion of anyi general
stock price readjustment.)
exploited

Selling Arguments

nine
months, in light of this
we
should
expect; the
record,

before

(I am refer¬

tween

•-

booming, and weak¬
managements or
projections are much

growth

and one-half

times the 1949 lows.

in either

nesses

av¬

that

mean

business

Indus¬

Dow-Jones

the

would

market conditions than it is when

decline of 25% to

sometime

since

though dividend payments may be
increased by 10% over the next

The Market Outlook
Incidentally,

yield basis of 4%

on a

year

391

1958

1957

•...•

$121,960,000

$109,862,000

to curb

Net Income.............

$14,690,000

$12,581,000

speculation. I personally hope this
does not happen, as the aftermath
would almost certainly be another

Earned Per Average Share.

$1.62

$1.44

Book Value Per Share.....

$19.75

$18.34

collapse similar to that of 1929,
and a public demand, for more

Number of Electric Customers

543,331

527,680

Number of Gas Customers..

311,480

303,952

Federal

Reserve

Board

forced

to take more drastic steps

event, my con¬
science would not permit me to
recommend that anyone contribute
to such an unhealthy potential de¬
velopment. I think we will all be
regulation. In

better off if

any

Revenues.

If you

think in terms of

a good part of the capital
which have been built up
in the past five years or longer,
and limit our holdings of stocks
for the time being to somewhere

freezing

between

the

40%

were

basis

mentals

and

60%

those

clearly warranted on
of
economic
funda¬

until the

Dow-Jones

Industrial Average had reached a
level
lows.

about

double

the

1953

a copy

our

1958

1958 Progress

Report, please write Investor Rela¬

gains

Which

would like

Annual Report or our

tions

Division,

Long

Island

Lighting

Company, 250 Old Country Road,

,|.ILCO
SERVICE

Mineola, New York.

LONG

ISLAND

LIGHTING COMPANY
mmm

msmmsmmm

The Commercial and Financial Chronicle

(1326)

Continued

David W. Barton
BALTIMORE, Md. —David W.

25th

usually takes

2 5-

year-old mu¬
He

David

production;

inception

its

since

steelconsumption,

Mr. Barton.

He has been a Vice-

and is well known in the financial

Mr.

Barton,

totaled

Steelmakers

President, the Fund's

"Steel"

includes

Trustees

for

nounced.

This

their

way

record

above the

Seaway

but

.a.

■■:

Professor Benford

flects

Seaway will induce revolu¬
tionary cost-cutting cargo han¬

record 2,630,000 net tons of steel

were

mills

amounted

10.4%

other main ports*

:
T--1

43%

were

year-to-date, shipments of reporting identical mills '
above production>:new orders- were 5.6% above 'pro- :
/•'

.y.-;':/'■

ft.; For week ended March;7,; as compared with the previous week, C
production of reporting mills was 1*1% above; shipments were.
2.1% above; new orders;, were 4.7% above. For the latest week;/ '
as against the corresponding week in
1958, production of reporting/
miHs was 7.6% above; shipments were 15.9%
above; 'and new7."

can

and virtually end pilfering,
'With all this emphasis on nu-/
clear powered vessels, it is a

; Business is being affected by
commented. Exaggerated or not,

•i

•

strange sight to see an ultra-moderri ship being loaded with equip¬
ment developed a century ago,"
he says.
'
other

the war talk, is an added spur to the business recovery.
Government inquiries, but not orders,/
are above normal, especially in industries like
stamping. Domestic

January Lumber Output 5% Above Year Ago

Steel

their

truck at
driven to

destination: and
the distributor's place of business."
Mr.

also is

Benford
an

added

points

out there
incentive in im¬

proving cargo handling: it's about
the only place to economize in
ship operation. Fuel costs are as
low

possible under existing cir¬
and
operating labor
expenses are rather rigid.
Since
about 30% of a ship's total ex¬
penses go for cargo handling, it
as

cumstances

The

too, he
adds, because of the possible sales
of trucks and containers.

American

New Franklin Branch
NUYS, Calif.—Samuel B.
Franklin & Company has
opened
a
branch office at 14836^ Burbank Boulevard

under the

tion of Jack Apple.

direc¬

Iron

and

Steel

Institute

December

but

1958

y 000 board leet in January 1955 While 478,000,000^ board feet, of /
-hardwoods were
produced.;, y/
/.-.v/v ;r/; ' /
V
Total new orders for lumber received
by the/mills during
January exceeded the. outph.t by 6%", while; the volume of lumber
shipped was about equal to the-month's-production/•'

Compared with -the. beginning month of 1958,

announced

average weekly

that

the

production

Passenger
2%

production in the U.

decline in the week ended March

Automotive Reports.
Schedules called
week.

was

14, according to Ward's

for

131,096 cars compared to 133,540
However, the recent week's total represented a 52%
over

the corresponding week a year

last
im¬

(86,447).
Thus far in 1959, said Ward's, 1,288.876 automobiles have been
assembled, 23% more than the 1,051,865 turned out through the
same

week

1958.

The statistical publication said
9-14 week

was

ago

below the

1959

the

car

volume in the March

peak of 135,953 recorded Jan.

12-17 and 15% above the 1959 low of 114,282 reached Feb. 2-7.
Auto makers are headed for a March production total

unchanged.:/* y/-r:
y-yy Unfilled, orders for both' softwoods- and:/hardwoods climbed:-

v7% during January 1959. 'At the <?nd of the month, unfilled brders■ 7
for softwood lumber: were-^1%'
above year-ago leviels,/while >
orders

hand for hardwood" lumber

totaled

board" feet,

9,106,000,000

month earlier but down 4%

Business Failures

approximately

from Jan. 31,

off^13%'7T./V /

were

of January

the

1959
same/as a

1958.

Up Moderately From Earlier Week

-: *

Commercial and industrial failures
the

week

ported

ended

Dun

March

12 from 288

rose moderately: to 311 inin the preceding week, re¬

upturn, after a two-week :
high as last year when 336 /
But, they exceeded slightly the 301 in 1957 and were
4% above the prewar level of 298 in the comparable week of 1939. t
Bradstreet, Inc.
not lift casualties

did

This

Failures

involving liabilities of $5,000 or more increased to *
a week
earlier, but remained below the 303 of this
year ago.
Small'casualties, those with liabilities under$5,000, edged up to 49. from .40 last week and compared with 33
in the similar week of l958i
Twenty-seven of the failing busi- !

262 from 248

size

nesses

had

liabilities

preceding week.
The

37,

toll

among

excess

3100,000
,

against 29 in

the-

construction contractors climbed to 50 from

manufacturers-/to 50 4!rom 42, and among commercial

services to 39 from 23.

In contrast, neither retailing, down to 149
wholesaling,-down to 23 from 33, suffered as many
casualties as a week ago.
Failures fell short of 1958 levels in
manufacturing and trade, but construction and service mortality

153,

nor

heavier than last year.

creases

during the week,

geographic regions reported mild in¬
The Middle Atlantic total rose to 110

from

101, the Pacific to'61 from >54, and the South Atlantic to 27
17.
Slight dips from the" previous week prevailed in three
regions, including the East North Central States, down to 50 from

from

56.

Five areas had fewer
failing, while three suffered heavier tolls and one held

Regional trends from 1958 were mixed.

concerns

•

even.

Slight Rise in Wholesale Food Price Index

;

Following six

consecutive weeks' of decline, the Wholesale
compiled by Dun & Bradstreet, Inc., moved up"
fractionally this week. On March 10 the index rose 0.3% to $6.13
from 36.11 of the prior week, which was the lowest level so far
Food Price Index,

ap¬

Six of the nine major

programmed for

12%, while shipments were ..
3%. :Hardwood .lumber.;-ordersTin- January T959^mehnwhile, ;
showed, a 7% ;decline -from lastly ear while shipments.-remained^-:'

Output 52% Above Year Ago

car

•

orders Tor ;

was

Car

new

softwood lumber this year, increased

from

*Index of production is based
for 1947-1949.

occurred.

.£

Association/ The January output '1
5% greater than in"Ja'nuary t
Softwood lumber production amounted to '2,151,000,-:';;:

below

of last year.

decline,

Uptrend Unabated

For the March 16 week a month ago the rate was *152.5% and '
production 2,449,000 tons. A year ago the actual weekly produc¬
tion was placed at 1,417,000 tons, or 88.2%.

provement

VAN

Production

operating rate of steel companies will average *162.5% of steel
capacity for the week beginning March 16 equivalent to 2,610,000
tons of ingot and steel castings (based on average weekly production for 1947-49) as compared with an actual rate of *162.1%
of capacity and 2,604,000 tons a week ago.
Actual output for March 9 week was equal to 92% of the '
utilization of the Jan. 1, 1959 annual capacity of 147,633,670 net •
tons. Estimated percentage for the week of March 16 is 92.2%.

would

seem much could be done
in this area, the professor states.
Detroit should have a
special
interest in this
aspect,

National Lumber Manufacturers

;,was 2%

Truck-Sized Packages

simply set aboard

2^629,000,000 board
to estimates of the I;

prices are expected to level off within the next .
weeks, "Steel" reported. Sporadic shifting isn't ruled out,
but changes should be minor unless there's upheaval such as an
industry-wide labor walkout.
"
•'
.y%///-.;;
"Steel's" price composite on steelmaking scrap slipped 67
cents to $41.66 a gross ton in spite of pending Japanese scrap orders for 900,000 tons.
!;

"Packaged units could be loaded

:y,y.'

Gross mill inventories of lumber at the end

Nonferrous

cap.

right at the factory and brought
to the pier on trucks, easily swung
aboard and neatly stored, and then

19.8% above.

were

The nation's sawmills produced a total of
feet of lumber during JanUary 1959, according

activity also shows signs of the psychological stimulus. •' '*

and

main

the Berlin tension, the magazine

few

ports long have op¬
posed changes in cargo handling,
but at Detroit and ports along the
seaway, this need not be a handi¬

orders

be shipped, the magazine said.

survey

ing times but also would cut costs

unions at New York

;;

above production.

duction.

marked pickup in railroad buying.

shows. Last year's shipments were valued at $310 million.";
Equipment is going mostly to plants in metalworking, .chemical,
and food processing. '
V.

only

Would lessen loading and unload¬

"The

477;- mills

the

1.2%

were

Stronger demand for plates and structurals re¬
Demand for oil coun¬

quarter.

sure for delivery will be greater.
opportunity to replace centuriescargo handling methods withf /
Foreign steelmakers are taking a larger slice of U. S. business, •
the magazine reported. Last year's imports were valued at $212.5
modern "package units," says a
million.
Shipments were 30% above 1957's. Until last year, the
University of Michigan man.
U. S. exported three to four times more steel than it imported; /
Harry B. Benford, associate pro¬
the ratio dropped to less than 2 to 1 in 1958.
fessor of naval architecture and
;
••'•*-/'''\T;V//'
Conveyor manufacturers are pushing an ascending sales curve
marine engineering feels shipping that should be
25% above 1958's level by year-end, a "Steel"-'
cargo packed in units about the

For

old

•

3:5% J

cars, or

Unfilled orders of reporting,
of stocks... For reporting softwood mills,>
equivalent to" 21 days' production at the cur-^
rent rate, and gross stocks" were equivalent to 44 days' production.
unfilled orders

Opening of the St. Lawrence
Seaway will provide a wonderful

not

20,347;

Shipments 6.5% Above Production

shipments

mills

A Chicago mill has lost some
production because of bottlenecks in shipping. Trucks aren't being 1
moved
into its docks, loaded, and/dispatched fast enough to
permit capacity operations on finishing lines.
■
Not much trouble is encountered in getting freight qars to
ship steel, but shippers are fearful of a car shortage in May and
June when production of steel products will be higher and pres¬

dling methods in New York and

bodies

were

reporting to the National
Lumber Trade Barometer were 6.5% above production for;the":
week ended March 7, 195S. In the same week new orders of these--,/

try goods is heavy. Line pipe makers have closed first half books.Steelmakers are in some cases making steel faster than

rence

of; truck

9.5% above the76,433 cars, or';

second

St. Law¬

avers

I-*>7;

May Stimulate New
Shipping Methods

decrease

preceding holiday week;

Lumber

magazine reported March 16.
was

in i1958,

^Loadings In the < wefek^ of ' March -7

half,

Producers ran their furnaces at 93%

increase of 51,556 cars,

11.4% below the corresponding week in 1957.r
;

2.5 points from the preceding week's rate.;
The metalworking weekly said that March's output of 11.5
million tons will also set a record, surpassing that of October,
1956, when 11,048,513 tons were made. Second quarter production will be the biggest of any three months in history: About 33.2 '■>?
million tons, vs. 32.4 million in the fourth quarter of 1956.
Sheets are being produced at capacity.
Hot-rolled bar pro- /
ducers have set limits oil the orders they'll accept during the y

and James E. Mutrie.

was

vLumber

first

the

cars,

corresponding week

Steel Output at New Record

well

ingots and castings.

capacity,

Barton Harvey, William L. Jacob

St. Lawrence

are

Production last week

Thoipas J. Donnelly, Charles A.
Fagan, Jr., Joseph A. Hague, F.

Size

freight for the week ended March 7, 1959/*
Association of American Railroads an*-/'.'

revenue

595,930

'■

Second Quarter

Chairman of the Board, and Mr.

■

Loadings 9.5% Above Corresponding 1958 Week

Loading of

and investment world,

Output the p&'st: week;
the level/bf/f.
preceding week and came in <the7wa^^^
weekly't ;
from the T3,259,6O0,OOO. kwh. total;Recorded the week' - v r

Car

their feet.

electric-light'/

n/r

and track materials.

Board

ended Feb. 21. * Hv'

products through June. This includes wheels, axles, rails,
Up to now, the railroads had been dragging

road

President and Trustee of the Fund

Donahue,

distributed by the

waTL.

.-...-j..,„

...

declines

addition

Institute.
the

Meanwhile, said "Iron Age," strong demand has spread even
products that heretofore had been little affected by strikehedge buying.'
For example, the mills are about booked to capacity on rail¬

President to succeed

//,//

The amount of electric energy
i

elected

plants was*;: ;1

latest week was estimated by /"
than:lastyweek's 23,492 total-.

for. --the

some

Electric OutpuLAbouf lO%/HiglM,Ybah l958 AVeek

and how labor negotiations turn

" John F. Donahue of Pittsburgh,

Was

Truck

Ward's at 24,422 units, or 4%

strike^' "IronAgfe;

could

1934.
;

Ward's said the reason for the short weeks at
balancing of output with new cars sales. IfjJrC'.*.

was

steel demand in the; last:.'

pacity during the first half of the year. But last-half production
drop drastically depending on general business conditions,
out.

Barton

been

President

programs,, one operated three days and one
The rest of the industry worked five days. f

the first half.

Chairman
the Board

has

Thursday, March 19, 1959

industry is expected to add 7 to 9 million tons to steel stocks in ;
The buildup will leave plants with 20 to 22 million
tons of steel inventory by the end of June. A labor settlement ;
would bring a quick end to inventory buying, v
/ y\
"Iron Age" said steel output may average about 90% of ca¬

for¬

the

;/y .'/•

sudden letdown in

At the presentrate of

Mr.

tual fund.

These observers look at it this way:

also

mal election

mean

walkout could last

peaceful settlement of steel labor \

—

in the last half if there is no

held in Balti-

strike

four-day

down all week.
7

Steel users would no longer have to iwofry. about l;
building inventory. In fact, they most likely would pare: expenses
by again cutting back on their steel stocks. ••
"Some steel analysts say the market will fall flat/on- jts face

Fund,
Inc. T./%- ■■
The event,

Barton's

lowed

half of the year.

dation

marked

Some observers believe

six to eight weeks.

issues would

and trustee of

raore

If there

Income Foun¬

long

year

Industry

while for both sides to cool off enough to get

down to brass tacks.

officer

proximating 580,000 autorifiobireSj said Ward's compared to 545,757 '
January and 478,484 in'February.
*;
Eight car-building plants were listed by Ward's as fulfilling,
six-day schedules in the-week of Marcli 9./ Four factories fol^«

The State of Trade and

Barton, business man and civic
leader, was honored at a testi¬
monial dinner on the occasion of
his

page

Honored at Dinner

from

;

Volume
i

;

this

Number 5830

139

The

year.

similar

date

(1327)

The Commercial and Financial Chronicle

.
,

current
year

<•

■■

index

Continued

from

Commodities quoted higher in price this week were flour,
rye, barley, lard, cocoa; eggs, steers; and hogs.
Lower in
price were wheat, sugar, and coffee.
<v

The

corn,

UApleasant Facts Regarding
The Currency Outlook for 1959

The index represents the sum total of the price per pound of

•"•V

raw

foodstuffs

living index.
food prices at

and

meats

general use.

It is not

cost-of-

Its chief function is to * show the general trend of
the wholesale level.
'
•

trucks that I

diesel

Wholesale Commodity Price Index at 1959 High

>'r
;

bought

;
'

-,."V'

Bradstreet

that

grain

will" give, just as its

Chrome"

the

some

areas

held

few of
own

fellow Americans

our

modest

have

large fortunes

become

jittery

and

scared,

capital move¬

ment

an outward
from the U.

Europe

Far East. American

pharmaceutical

and

has

from

partially

cheaper than ours. And
But this is not the
complete picture.
are

pens

goes.

stopped by us. It has generated
an international wave of Dollar
distrust.

Financial Ignorance
Let

have

Tlie

look at the finan-

Conclusions

repercussions, which are also enumerate are far from pleasant.
we
fully ignored by even intelligent Now,
we
might or might not
editors or bankers. They believe continue to improvise Dollar de ¬
cial

the rising

in drooling about

that
stock

market,
duties.

their

is not

comply with
unfortunately,

they

That,

so.

We want—like

long

Dollar

the

was

strong currency, New York was
the financial center of the world.
Our

politicians

ceased to
they talked

never

whenever

basement, but we are near the
point of no return. And some¬
thing has to give.
children—to eat

the inflation cake and to conserve

the

same

time/That cannot be done.

Only

the

Dollar's

value

politicians and bankers believe in

espe¬

to the conservation of Dollar pur¬

chasing power. We have to accept,
as the British did and the French
do now, a

system of austerity. We
bank
rates,
make

raise

must

hard to get, practice defla¬
Sure, that means temporary
unemployment, means abandoning
many
projects, the end of the

money

tion.

absolutely artificial building boom,
sharp reductions of all agricultural
subsidies, and many other mea¬
sures of coming down to earth.
; We will have to give up our

method

silly

absolutely

com¬

puting statistics or balance sheets
in Paper Dollars
of constantly
dwindling purchasing power. We

publish losses of purchasing
of all bonds and recompute
wages, insurance policies, annui¬
ties and similar payments
into
Real Dollars of 1940 vintage.
V
Let me state that none will like
to
do
all this. We
are
human

must

power

that

believe
may gay
me

Many will

and'optimists.

beings

miracle
eliminate

wrong.

also

nothing would give
pleasure than to see
happen
which
would
these

all

Un*

worries.

fortunately, miracles only occur in
fairy

The facts which I have tried

Therefore,

cially with the heavy competition
from Europe and
the attraction
and
safety of some of its cur¬
rencies, we have to give priority

And

tales.

18th

Prussian

Frederick the
God is

the

famous
King,

Century

Great, once wrote:

always

the side of the

stronger battalions.
We

are

better

in for trouble.

fasten

our

We had

economic

seat-

belts, for it will be a very rough
ride. Try to
It

not

will

survive—at

think what we can do.
be
a

but

gay,

can

price.

about it to foreigners. The latter

consumer

boosted overall

of ,retailrtrade in

never

fully by U. S. ably soon to London, Paris and
Frankfurt not to speak of Brusinterests near Bombay or Manila
The French and German ballpoint sels and Amsterdam,
cannot be

owned

gentme'nt? O^rHp^itica/and°feco-

buying in

u.Ps.Vl?e *n
retail trade

domic arrogance during the "Dol-.
•_
Kin? nprinrt"

The^^

volume

probably

gotten underway and is far
being finished. The con¬
vertibility moves in Europe con¬
products, still attractive in India
and other Asiatic countries, can tributed majorly to its accelera¬
This
capital stream, now
continue to
be so only by the tion.
existence of huge chemical works flowing to Switzerland and prob-

unjustified as1 brnrfnntinn Qinrp
our belittling of
retain

t-,;

year"or

a5out

ThertotaLdollar

our

chemical

rub

week, and substantial increases over, the similar
maintained, according to scattered'reports. ■:?*>■

radio
have
products all over

Philips

pitiless arithmetic
laws that you
have learned. But

of eternal currency

also

Dutch

the Near and

vmoderately
oyer a year agq.
sales of furniture, but volume m appliances: and housewares fell
'*somewhat. The buying ot new passenger,cars matched;the prior
.

our

Hampshire, but

New

know about the

who

displaced

Selling'Gets Underway

cl®®^ t°.
apparel

one

frighten the
^CentraL Bank
managers outside the U. S., be¬
cause
most of these
gentlemen

tion. The German Telefunken and

against 3,396,000 at the same time last year.

weather in

banker

uninformed

the

they

admira¬

the

bad

German

them

called

weeklies

.«

While

Iowa

bus

passenger

you

cousin, the Volkswagen bus, quite
few headaches to the "Donatellos

the, week ehfled March 41;
interest in women's Easter

shock

Easter

Romeo

takes

and

prices increased

in wheat expanded

passes,

credit. The

year

deficit of about $3

to the Ciampino
Airport in Rome is available on
.excellent credit terms for export

fractionally this week. Trading
moderately and receipts were lighter helping
prices to move up somewhat. Supplies of corn were reduced and
buying moved up slightly ; corn prices somewhat exceeded those of
the prior week. There was a riioderate rise in trading in oats, but
prices remained ciose to the previous week. The buying of soy¬
beans helci steady and prices advanced moderately.
There was an appreciable rise in the 'domestic buying of flour
during the week, but prices were unchanged from a week earlier.
Export purchases of flour slackened. Trading in rice slipped some¬
what, but prices were unchanged;'ride inventories at wholesale
were iigxit.
: v
;
Although coffee prices picked up somewhat at the end of the
week they finished below those of a week earlier; coffee trading
was steady.
Interest in cocoa declined, but prices were unchanged.
/Following several weeks of decreases, sugar prices leveled out this
week and trading was steady.
%
Hog receipts in Chicago were steady this week, but trading
advanced moderately; this resulted in a slight rise in prices. There
was a slight rise in steer prices as the salable supply was limited
and trading was steady. Wholesalers reported an appreciable gain
in lamb prices; receipts expanded moderately and trading was
slightly higher. In contrast with the rise in hog prices, lard prices
remained unchanged from a week earlier.
Turnover in lard at
wholesale was slightly higher than a week earlier.
Cotton trading on the New York Cotton Exchange picked up
at the end of the week, but prices remained close to the prior
week. The improvement in purchases'was due to mill price fixing
!and a possible tightness in the supply of "free" cotton later in the
season.
Experts of cotton for the week ended last Tuesday were
estimated at 60,000 bales, compared with 31,000 a week earlier and
79,000 during tue comparable week last. year. Cotton shipments
for the season through March 10 were estimated at 1,908,000 bales,
Most

Alfa

small

Daily

three

payments
shows
a
to $3.5 billion
for 1958. Figures like that do not

balance

mostly German "Mercedes," were

Wholesale Commodity Price Index hit
278 25 on March 11, the highest level so far this year. OOn March
J 6 the index stood at 278.01, compared with 277.08 a week earlier
ana 2
1.45 on the comparable date a year ago.
'

■Dun

mountain

Indian

over

Boosted

by higher prices on livestock, hides, rubber, and tin,
the general commodity price level rose during the week, and the

climbing

saw

feasibility.

its

page

• \.<

•

35%

below the S6.68 oi the
:.•■•• v.. >

8.2%

was

ago.

1958 period Were \ dever'men
;

••

' the few

ago

anions

ou?

financiers

.became, aware of the fact that our

the wqek ended

■tfihartcial

supremacy

was

dwin-

than^year ago, according to spot J? dling to the same degree that the
estimates collected by Dun & BradrtrfectyTnc.Regional estimates ^Dollar shrank.They did nothing
.varied from. the comparable 1 ynSylevels^ byrthe following per-";- 'abouty it ' and, dike once-upon-acentages: 'West-South Central r^-,6'
10; Soqth .Atlantic
5 to
time beautiful- women who saw
March IT was 2 to 6%

;
.

higher

J.4 9; Pacific Coast -f-3 to -|- 7.; East -North .Geiijral F2 to ^6;/;Mid-w * their •••/attractiveness fading

away,

anckFastYSquth; Central
1 to
they'^continued to talk and to
i+5;-Mpuntain —3 toY £l;• Nevy^nglah^—^/ro^—l.
r
.'»/* think of past conquests. That was
y There were marked gains during the JyeekYin sales of women's
; a major mistake/
Spring. dresses, suits, and millinery,, ^vhile interest in Winter .
Then, with Britain's Sterling
clothing (/declined. _'• The call tor Spring:,Tashiqn - accessories and.,-, gaining-in strength, early in 1958,
...sportswear moved up moderately from th£ ptior week. Increased ,.first/.a Small and then a larger
buying of men's.^Spring suits offset declinesan Winter-suits and ,,; slice of-' international foreign exovercoats holding volume-close to both the pfior week and a year; , change business moved from New
-f ago. • Except': for:;-dress shirts, purchases of^men's .1urnishings . ( York ^ bapk to European banks.
| lagged::/,.The calk .for.-, children's ..plothihg; was,/•sustained at a high -. After" the beginning of external
^level and appreciable year-to-year incrgase| occurred.,
.
convertibility of Sterling and the
^././^ Shoppers were more interested win4:,apparel than in household ^12 continental currencies, dealings
tgobds this week,'- Despite slight^.ins;;dn ;l^lkii*y -equipment, vol-i.y in Transferable Pounds, German
•4un\e';'ip;,iha0i*-, appliances fell - somewhai/ from a year ago./ The
Mark of Limited Convertibility.
Vbyying of occasional tables and chairs,-? bedding, and upholstered •• Transferable Guilders, Belgian and
French Francs of the same variety,
: living room furniture showed moderate year-to-year gains, but
as
well as of Transferable Lire,
sales of linens,, draperies, and floor coverings were dowi^from the
comparable 1958 week.-C
:
/v
1 '.'/••• /;•#',•
;
r; /
).'•, • also ceased in New York. All this
trade,' surrounded
by a larger
Housewives were again primarily interested in Lenten food
number of other banking or finan¬
specialties this week, particularly cheese, canned fish, and baked
cial operations, moved to Europe.
goods. The call for fresh meat and poultry fell somewhat.
/idle Atlantic, West North Central,

•

„

British,

The

•/

Nationwide Department

Swiss
trade

reclaimed

ours,
this business. I believe

they will

long time to come.
But this rightful restitution would
it for

have

For the four

not bother me,

that

According to the Federal Reserve System department store
sales in New York City for the week ended March 7 showed a

terior

decrease from that of the

and

in¬

unavoidable

exterior

well

vertibility,

financial business

Predicts

WALNUT

CREEK,

Calif.—

Henry F. Swift & Co. has opened
a
branch
office
at
1397
Main
Street

under

the

management

Alonzo W. Anderson.
son

for

formerly local
Hooker & Fay.
was

Mr. Ander¬
manager

(Special to The Financial Chronicle)

was

SAN

FRANCISCO,

Calif —Jo¬

seph F. Morrison is engaging in a
securities business from offices at
235

Montgomery Street under the

firm

name

considered

country

of J. F. Morrison & Co.

funds in search of
stability.
When
the

currencies

European
of

country of origin
know that

lion

our

began. You all

lost about $2.3 bil-

gold

Net

$202,573,000

•

5,845,000

Earnings.
per

Share of Common Stock.
Common Share.

:....
;

......

and

$1.52
$2.00

62,706,000
105,268,000

Shareownere' Investment (Net Worth)

4,454,000

Capital Expenditures

19,678

Number of Shareowners at December 31

regained

substantial repatri¬
capital return into the

their strength,
ation

Report in Brief
Sales and Revenues

Working Capital at December 31

the U. S.
an asylum

for

monetary

of these metals and the

Company's markets.

diversification of the

Dividends per

Capital

Repatriation

suggesting the beauty and lasting quality

Earnings

European

Ludturn's metals, and products made from them,

con¬

will be lost by us.

J. F. Morrison Co. Formed

Henry Swift Branch

Report cover depicts an abstract sculpture made

of Allegheny

if I would not see
Common

its

Until the end of 1957,

The Annual
some

the European

with

Market

like period last year. In the pre¬
ceding week, Feb. 28, a decrease of 4% was reported and for the
Feb. 21 week a 47% increase was recorded.
For the four weeks
ended March 7 an increase of 7% was noted over the volume in
the corresponding period in 1958.
1%

and

foreign

than

/traditions

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for- the week ended March 7,
advanced 5% above the like period last year.
In the preceding
week, for Feb. 28, an increase of 10% was recorded.
weeks ended March 7 a gain of 11% was registered.

German

older

banks

Store Sales Up 5%

that

our

Write for your copy

ALLEGHENY

of the 1958 Annua! Report

LUDLUM STEEL
OLIVER

BUILDING,

CORPORATION

PITTSBURGH 22, PA*.

The Commercial and Financial Chronicle

(1328)

Continued

from

utility of the labor needeci to turn

page

out.

Hazliftt's Critique
Of Keynes

(and)

can

what

other

than

were

many

our own

tariffs?

than

and clumsy way of iden¬

vague

labor

the distaste for

over

needed

produce

extent

it.

as used here, is
resultant of two unlike

the

lateral

but

value," and I have no
quarrel with that state¬

conflicting emotional forces.

The second objection to the use
of "normal profit" as a criterion
for economic

did

duce twice

tariffs.

out

her

foreign

Canada.

And she

goods

confiscated

She

dollar

denied

her

London

shop

sition

buy

windows.
a dispo¬

abroad

than

Britain could "afford to pay
Hazlitt goes on to charge

foreign countries
their

for."
that

to blame for

are

troubles because

"They
accept the verdict of the
market as to what (their)

own

will not
open

currencies

worth.

are

...

continue
this

precisely this over-valuation which
the

brings
about
city." °a

dollar

that

scar¬

S. Tariffs

But U. S. tariffs had

pver-valuation.

not

sufficient¬

this

over-valuation

was

divorce world currencies from

Official

rates

and

allow

them

marketable.

equivalent
either

are

But

to saying
able or

him, but not

Hazlitt

find it worth their while to do and
a

temporarily overstimulated level

is conceivable.

reasonable

person

only does Hazlitt deny the
possibility of absolute over-pro¬
duction but he

seems

also to deny

possibility of over-production
to

gold

for
he
says:
"Whenever business was bad the
merchant

average

had

two

ex¬

suppose

that all these countries combined
to do this as result of innate for¬

changing

men

there

not

are

the

constantly

are

can

norm

values." But

desires of

other ani¬

mals constantly changing? And do
not
cattlb' iAfrdrmally"' seek' the
best pasture?

Do net sheep "nor¬

mally" turn their backs to
zard?

bliz¬

birds

nor

"normally"
fly south for the winter? Has not

finable

to refutation of the second." 7b

But

chant"
how

"average mer¬
wholly wrong, then
explain that, at the

depravity

1920's.

and

general

peak of

en¬

But

when, in the crash of
1929-32, this foreign lending dried
up, the over-valuation of foreign

tive to that of gold and gold
pro¬
duction
is
deficient relative to

currencies

production of all else? This does
the proportions are
simply wrong.

became

here in great

came

evident, gold
quantities, and

the gold standard fell from
grace
over a wide area.

production of all else.

But

does

show

that

This

does

there

can

general

quoted
Montague Norman with approval

over-production rela¬
tive to that of gold.
It may be useful to pictorialize
this see-saw between the

when

tion

position

own

all

should have been clear.
he

wrote

this

regretfully

that

produc¬
gold and that of other
Let the reader think of a

"real stabilization" is "impossible"
in view of U. S. tariffs.
I said

board

"some

substitute

two ends

tional

gold

for

standard

conven¬

had

found
for
England. As to the
United States, England could
hope
for nothing better than inflation

here.

things.

being lifted by a hoist, the
swinging. At one end is
gold production, at the other gen¬
eral production.
There is simul¬
taneously an inverse, negative,
cyclical correlation between the
ends

"Keynes'
program
would not have been needed had
U. S. tariffs not rendered the
gold

secular

standard

two

internationally unwork¬
able. ..." "There is reason to
think
that orthodox criticism of
such

Keynes,

that of

orthodox

Hazlitt,

defense

well

the

gold

Standard, would be strengthened if
these two

ing

None
an

in its own think¬
be better understood."
of this
language is that of
errors

were to

apostle

soft

and

money

really careful reading would have
Spitz his error.

saved

Say's Law

Turning
I

can

find

now

Say's Law, all

that

he actually said
is to the effect that "A
product is
iio
sooner
created than
it, from
that instant, affords a
market for

6Noyes,

Alexander

D.,

The

American Finance,

Putnam's

Sons,

105.

New

War

1908-1925

York,

1926,'

opposite

positive, parallel,

correlation

between

the

raised

ranged
So

between
are

\xk%

next led

and

ask

3%.°
what

Price

Although perhaps

rise

general

prices

is;

unfair to the innocent

course,

holders of money, bonds, etc., who
have lost the purchasing power of

that

part of their labor
they unwisely turned into

which
money

lator"

from

seen

prac¬

the

specific

practical
importance for monetary theory
of the conclusion that money has a
"norm"?
the

It is this:

assume

existence

of a "right," "nor¬
"equilibrium"
volume
of

mal,"

production from which gold then
takes its

slice, and if

assume

that emotional factors

are

decisive

fixing this volume, then

we arc

driven to the conclusion that mere;
mortals are unequal to forecasting
these

changing emotional

factors

and that therefore the production
of money

much

had better be left, very
is

wheat

clause, the employer gains
higher prices while his

Obviously the equilibration

the
steel

production
of

women's

hats, to the forces of demand and
supply.

should

bi-lateral

with

one

taking its full part along
prices; and, since no
one knows the "right" amount of
money,
the question as to any
proposed monetary base should,
money

with general

this

spectable
level
swer

and

use.

But what fixes the

normal

would

The

an¬

All

law.

Unclear

not

clear

forces take
of

cases

or,

in the

that natural

mean

complete holiday in

overissuance
the
case

money.

money

supply,

of Germany in

1922-1923, multiply it by a tril¬
lion,0 then general prices—so long
as they are left free—will tend to

over

the

dis-

7a
Hazlitt,
Henry,
Keynes'
Greatest
Achievement, The Commercial and Fi¬
nancial
Chronicle, Sept. 11, 1958, P. 3.
7b I bid.

professor
two

creased

saying:—"When

Hardy,

will

processes

production and
prices.

excess of the util¬

set
a

will

processes

prices
in—-an

decreased
a

in¬
con¬

gradual

If prices

set

get too low two
in—decreased produc¬

tion, because a man will not continue to
produce at a loss and, second, increased
consumption.
to

establish

Does

Keynes' program meet this
test, for instance?

There

Enough
Gold? The
Brookings Institution, Wash¬
ington, D. C., 1936, Pp. 9-40.

following

figures,

although not precise, will give at
least

idea

some

the

contribu¬

tion gold normally makes to
panding employment.

ex¬

Present H world

population 5 is
Assuming 40%
as gainfully employed would then
give us a working world popula¬
about

billion.

2.8

tion of 1.12 billion.

annual

average

Applying the

population

in¬

of 1.5% to this figure gives
total annual working population

crease
a

increase of 16.8 million. The
these

workers

since

but

aver¬

capitaj annual wages of

per

must

guess

including the
Orient, Africa, South America and
other very poor areas, a figure of
$350 per year might not be too
low.- Taking that figure gives us
we

annual

5.88

are

increase

billions

dollars

money of
as
suffi¬

million

workers.

Keynes would have led

one

think that monetary expansion on
Test

for

Keynes'

Program

On this approach the first thing
notes
about
Keynes is his

one

failure

provide

definition

ment"

the

which

quantity of
Federal

Reserve

usable

any

"full
tries

employ¬
tie

the

Nor has

money.

our

Bank

defi¬
nition of the "full employment"
which Congress
has charged it
with providing. We lack any cri¬
terion for the wage level the
refusal

make

man

ployed
the
sas

for

which

any

supposed

involuntarily

and

cannot

unem¬

whether

say

wage for farm labor in Kan¬
is the right one or the wage
common labor in the City of

New York.

Is the rate of employ¬

a gold standard was totally inade¬
quate to meet this increased need

of money on

account of wage and

employment increase. Let us look
Gold, over the world
as a whole, is being mined at the
at the facts.

rate

around

yearly.12
the

crease

And

half

leaves

arts

million

$1,200

Allowing
the

million
for

with

total

use

$600

annual

in¬

available for gold reserves.
we
then assume the con¬

ventional
of ten to

ratio
one,

credit

arrive at

gold
fig¬

of $6 billion of new money as
annually available to support the
ure

annual

increase

world

payments of $5.88 billion.
then make the further

wage

assumption,

lazy
tropics
the
"right" rate for the more vigorous

which is probably correct enough,
that one dollar in new money will

north?

enough to handle two dollars
production, we find our¬
selves with another $6.12 billion

ment

fitness

the

How
of

do
man

work he demands?

the

measure

for

the

kind

one

has

of
a

really workable answer to these
questions. The temptation of those
charged with the task will be to

new

what

credit available to handle

adds
I

his

became

own

rich

words

balance" he then
"Ten

years

remembering

later

those

slow

halt

inflation

our

Schacht, Dr. Hjalmar, The Stabiliza¬
tion of the Mark, The
Adelphi, Co., N. Y.,
1927, P.

114.

the

with

rakes'

progress

the melting point for silver coins!
The fact is that human nature
will

always seek to assert itself
opposition to any attempt to
defy its normal laws. Thus even

mild

inflation

the

rate

bond

buyers, perhaps, rather
shortage of money,
as occurred in
Germany in 19221923, can then go far toward wip¬
ing out what were, previously,
than from any

inflationary
bringing

on a

profits,
crash.

and

thus

For another

illustration, hyper-employment, by
making labor

may

world "robot"

If anyone supposes

These two forces will tend

the normal

words."

Charles

The

mines.11

logic, be whether it does
cient to support an annual increase
tend to
subject the quantity of
in the working population of 16.8
money to natural forces or not.
on

tinued

double

sailing in the

This does not

Sailing

probably be demand sumption.^ The effect will be
fall in

supply, the

called the annual
population increase.
that gold min¬
leaving of money to the forces of dodge criticism by setting the em¬
An ing is not reasonably sensitive to
demand and supply, however. One ployment standard too high.
excess
of
changes in its costs, he should
money will
then be
difficulty is that paper money,
look at the results of price and
and also, to a large extent, bank needed to achieve this over-high
credit money, are relatively cost¬ employment; general prices will wage inflation in the World War I
tend to rise and nullify this excess period when world gold produc¬
less products and
cannot, there¬
of money; employment will then tion fell from 700 tons in 1913 to
fore, wholly regulate themselves.
tend to fall back to its normal fig¬ 476 tons in 1922 01* by 32%.12»
If their production is to be made
There is some remote possibility
ure, whereupon another dose of
to conform to natural
law, there¬
excess
money
from the hypo¬ that Kejmes was talking only of
fore, it must somehow be tied to
dermic needle will be called for. the inability of the banks, at the
something else in the economic
field which is governed by natural All this spells nothing but con¬ bottom of a depression, to expand
Some

profit?

Keynes
importance to warrant
interpolation.
He
is
nowhere
more
emphatic than where he
insists that a gold standard, with
its high interest
rates and low
wages, is helpless to create em¬
ployment
except
at
the
gold

age

lose.

digression,

criticism

further

Rise

only 2% a year, if continued long
double or to multiply themselves enough, is likely to raise interest
by a trillion, with the result that, rates by the 2% in order to com¬
Probably most economists would
pensate bond buyers for the loss
8a Bernard
reply "normal
M.
Baruch
provides
con¬
in the purchasing power of their
profits," normal
profit being a familiar economic firmation for this view. In Baruch, My principal. And such an increase
Own Story, Pocket
Books, Inc., N. Y.,
concept and one in thoroughly re¬ 1958, P.
in rates, derived from apathy of
51, after quoting his economics

fixes these two rates; annual
pro¬
duction and its rate of increase.

Pe-

never

What

to¬

The rate at which our board is
lifted has been the subject of ex¬
tensive study, and guesses at the
rate
of
annual
increase
have

ity of the product

Hazlitt, Henry, Op. cit., P. 21
Kemmerer, E. W„ Gold and the Gold
Standard, McGraw-Hill Book
Co., Inc.,
i
120.

swing
a

ends as they are
gether by the hoist.

Jr.

they

directions, and

and

tice.

Hazlitt's

was

a normal boom, on a gold
standard, we find general produc¬
thusiasm for soft money?
They tion going great guns, whereas in
were
driven off gold by loss of the
meantime, high wages and
gold consequent on their inability high prices have slowed down the
to pay us in anything else.
Ship¬ production of gold to an inade¬
ments of gold to us had been part¬ quate rate?
Is it reasonable to
ly obviated, and foreign bank¬ deny that, at such a time, with
ruptcy masked,
by
our
(very money scarce and interest rates
unwise, in view of our tariff pol¬ high, general production of things
icies) foreign loans during the other than gold is excessive rela¬

eign

This

Greaves objects that "since the
desires

in these matters, and peo¬
ple, if they fail to get what they
want in the ordinary way, are apt
to try to get it by some other.

seems

workmen

planations; the evil was caused by the
ocean a "mean high tide" even
a scarcity of money and
mar¬
by gen¬
The concept
ket would put on them" which eral over-production. Adam Smith, though never calm?
of the norm is a most useful and
does sound suspiciously like the in a famous passage in The Wealth
even
a
most
profitable one,
remedy Keynes proposed for the of Nations, exploded the first of
though
not mathematically de¬
British pound.
these myths. Say devoted himself

any

Unfairness

probably will,
market. But Hazlitt

"fall to the value that a free

Between 1929 and 1936, 59 coun¬
tries left the gold standard. 7 Does

cor¬

her own

for human desires

relative

rem¬

prices only and

today, then the

Not

in the world.

And Hazlitt's

and

does.

the

for

people

ly sharp tariff increase by us could
over-value nearly every currency

does

can,

I quote

hand in

It is not too

much to suppose that

edy

same

willing to spend unlimited time
trying for it. Say seems all right

The Role of U.

this

increase

luxury products, reserving them
for export only and so marking
them

much with the

side

cheated

rects the maladjustment.

cleaning, etc., instead of That is bad enough, but even
employing a hired girl. Such work worse is the absence, while the
is economic work. Yet it cannot thing is going on, of any unit of
supply its own
be explained in terms of money reasonably fixed value in which
denies the possibility of any crite¬ incentive. It
An em¬
can, however, be ex¬ contracts can be made.
rion for limiting production other
plained quite well in terms of ployer must not only agree as to
than mere marketability.
Do his what the housewife finds it worth the wages he is ready to pay but
people never get tired? Do they her while to do. Then, accepting he must also try to find some
never need to be consumers? Has
Hazlitt's maxim that the whole is formula
whereby his workmen
he forgotten Moses and his sixequal to the sum of all its parts, (unlike the holders of government
day week? Unlimited production the normal level of general ac¬ bonds, etc.) will not be cheated
might, as Say says, if attainable tivity can be identified as the sum when they come to collect their
and if the proportions are right, of what individuals
Without such an "esca¬
everywhere money.
labor

citizens the right to buy her own

None of these facts show

the

says

means.

printing

activity is that it is

holdings of her nationals for use
in payment of her debts.0
She
closely rationed travel—as in fact,

shut

She

within

live

front the side of increased money.
Natural
forces
are '
not
easily

and prices is blocked by
presses then a uni¬
equilibration sets in from

money

Worthwhileness,
the

much

and when a
equilibration between

want

no more,

lateral

Thursday, March 19, 1959

dependent of the good-will of em¬
ployers, is likely to raise costs10
and thus go far toward neutraliz¬
ing the effect of forced feeding

People
and

money

thus

he said, "that general over¬ too narrow. Not only does it not
production of all commodities is cover those who work for wages
not
possible," 7a I strongly dis¬ and salaries but it does not cover
agree.
This may bring out the those who do their own work.
distinction: if the world, ten years Take a housewife who does her
from now, finds itself able to pro¬ own
cooking, her own laundry,

tried

the process is completed, we
back, in spite of ourselves, to
the
"right"
amount
of
money
once

are

again.

the

But if he said what Hazlitt

ment.

evidences that Britain

tifying the emotional forces of de¬
the object and the excess

own

present

There

sire for

products to the full

of its

afford to pay for." But
their sales to us

this

of this desire

prevents

But

Noyes,

346-347.

Op.
.

cit.,
.

and

Pp.

300

and

inalso

11 Keynes, J. M., The General Theory
of
Employment,
Interest
and
Money,
Harcourt, Brace and Co., N. Y., 1936,
Pp. 7-8, 230-231, 234^235.
In view of the claims made by Keynes
as
to
the inability of laissez faire and
the
gold standard to provide adequate
employment, it is worth looking at the
record.
During the 48 years ending in
1907, England had an average^ of only
4.5% unemployed. (Beveridge, Sir W. H.,
Employment, A Problem
Of Industry,
Longmans Green and Co., London, 1909,
Pp. 39 and
132)
Whereas in the six
years immediately preceding World War
II, 1936-1941, inch, under Mr. Roosevelt,
the United States had an unemployment
average of 13.5%. (Beveridge, Sir W. H.,
Full Employment in a Free Society, W.
W. Norton and Co., N. Y., 1945, P. 47)
(My averaging in both cases). It seems
fair to add, however, that both we and

the
II

British

was

United
Table

over

better

after

(Statistical
for

World

Yearbook

1953,

Pp.

War

the

51-52,

8.).

12 Federal

Board

did

Nations

Reserve Bulletin, Nov. 1958,
of the Federal
Re¬

Governors

System, Washington, D. C., P. 1361
for production outside Russia.
World
Almanac
and
Book
of
Facts,
1959,
N. Y. World-Telegram and Sun
N. Y., P. 704 for latest estimate of Rus«
sian production (1938).
12a Layton, Op. cit., P. 242.
»' -.
serve

Number 5830

189

Volume

if have allowed booms to overrun standing of the issues involved
didniot and thus made corrective depres- can be helpful. t.
so limit his argument and in any
sions practically inevitable. Below
'
^ "
FRANK CIST
case
the point is worth making are figures to show how the theory Delray Beach, Fla.
clear that a gold standard is quite of norms can help with the probcapable of taking care of normal lem of applying the brakes to
Forlntim V.-P. of
population increase, plus, if the credit reflation gently and at the
past is a good index, an immigra- proper time.

credit
that

employment/ but.

and

his meaning, he

was

tion increase also.

Assuming

Having tried to show the usefulness of
the concept of a general
V-»

standard with
T""
— —- ■ — — —.

Chesapeake & Ohio Railway

Slayton & Co., Inc.

gold

conventional
a

1 ——

ST.

ten to one ratio
— —
" —

LOUIS, Mo.—The appoint'1
A
I

gold, and assuming ment of Jack F. Fortniim as a
analyzing Keynes pro- that, at the bottom of a depres- Vice-President of Slayton & Co.,
gram I will now attempt briefly
sion, we find ourselves with $20 Inc., 408 Olive Street, has been anto use this concept to show errors ibillion of gold reserves, but with
nouneed by
.
in
gold-standard
thinking and deposit credit shrunk to $170 bil- Hilton H.
t

■

„

Errors

(1)

It has been frequently asthat the chief use of gold

international balthe
arguments here

settle

was

ances.

chief

the

presented
should

coal

pnrripr
carrier,

Slayton, President of the

has

been

company.

tie

and

the

volume

Kt':(2)

For 20 years the Bank of
England went on the principle of
keeping only enough gold on hand
to take care of its international
its

held

and

needs

gold reserves

^o assume his

sn^rnlation

for still

higher wind-

soning here submitted, was a mis..
take.-Reserves should have been^nent the price rise is
.

I.,.*...

m„lrPQ

long

the market continues

«though not.

though £33,000,000 was taken as a

well

£38,000,000.

mum

normal level a d
c
tive deflation mevitabl

...

of unused credit.

fixing

annual steps

both

the

divisional

regulate'

«,

The Banks for Cooperatives are
offering today (March 12) a new
iecim nf annrnvimntolv <t7R *nn nnn
issue of approximately $76,500,000
0f Z\'>% six-month debentures,
dated
Oct
debentures
are
being
offered

pfll.L. S? ^

The halt should

some such
this: $2; $4; $6; $6;

fnfa«l

^ ,a

? Slfc5

group of securities dealers.

$6; $4; $2 billion. By such a program the braking process would

would

This
road's

the

to attack on Keynesian policy and
to defense of the gold standard
which rather simple revisions in

lx,t.

en..ai

7nnnnn

imtn/ntf

But making mpney an
with which to stabilize

prices.
agency

prices can conflict with the objective of enabling the forces of sup-

to control the
money
supply. The attempt to
hold prices stable was seriously
tried in the later 1920s and led
to one of the worst depressions
ply

;
'

and

demand

historv.
its

bilizes

own

each country staprice level inde-

pendently of every other, leaving
exchange rates to dance, no unit
is left in which to make international contracts. Did we have a

•

price index plus an intercurrency unit in which
foreign balances, then

world

national
to

The foregoing

Kaipn J. L»ay Upens

thc

been

formed

with

offices

prices might be stabilized
^ reai hope appears in this— Wall Street, New York City, to
index; but the problems R,at world need of a sound peace engage in a securities business. A.
of such a plan, appear formidable agreement may persuade us, once Henry Fricke, Jr. is a principal,
at the moment.
Our own Federal the problem of Germany has been
-.Reserve has seemed to vacillate disposed of, to offer, as the price Cullen Stanford Corp. Open
between the stabilizing of prices, of our kind 0f peace, to join a
one

ment
when

another

prices

got

"fugcustomsuniqn agreement pledged
raising rates
slow ireeing of world trade.
to

too

high

and

nrlw^ButrtsTo^nl
got too low. But tnis policy, it J

Such

agreement

would

have

TmatV«eT °f PC'?rrhg

for ^he world the service which
has noi our Constitution has performed
avoided
serious
erosion of the for us> jllL forbidding tariffs bevalue of the dollar which is now |ween our several states, and thus
below
that of the old "Dollar providing an unequalled market
Mex."
for
mass
production. With our

have

stated

it correctly,

stento^Co^'is^onducttoga' sehj:
...

stanf^d 'a
Tl._.1clI

offices

(r&Id
TD_nr,

Offteare

GabaefR President;

p9uDP**

rev-

45-46.

ixm

innrtc

fov

oHomoiiufl tn nrpwnt

could

from car rentals

off
add

its own line
substantially
months.

income in coming

to net

of the lowest in the industry,

one

ceding year and net income may

believed that because of this

approach $7 a common share an
compared with the $6.36 reported
in 1958. In view of good control

year

COntrol that C.
vulnerable
creases,

this

& O.

will be less

further

which

year,

in
in

43.3%
43.3%

seem

than

most

inlater

wage

likely
of the

na¬

and

even

dividend

& O. has developed a sound
tight cost control system. It
ex-

the income might
$4 annual
return of
5%, or more than

expenses

over

better

larger.
The
provides
a

than

several of the carriers at

current

market levels.

Richard Adams Joins

E. I.

Hagen & Co.

PORTLAND, Oreg.—Richard H.
Adams has become associated with

I Like Best

E. I.

Hagen & Co., American Bank
Building.
Mr. Adams, who has

expenditures for sales work
outstripped increased profits. We
that this job has now been
basically completed. What does

feel

mean? To us> two things:
First, that the Stuart Hall Com-

this

pany

firmly

entrenched

national basis for the distribution
its

fore,
'

product. That sales there¬
assured. Secondly, that

are

—

sales will now increase as will

profit margins while costs of
doing business will tend to remain
constant. This means simply that
the Company has reached a peak
in seiii11^ expenses while the
peaks of sales and profits will
come over the next few years. We
look,

therefore, not only for in-

creased sales volume in

1959, but

sharply increased profits.
If

determinations

our

correct, if the
if

increases,
Hall

climb

if
,

the

climb

Stuart

of their

now

network,

at
.

sales

distributive

profits

Portland

for

many

years,

was

fonnerly manager of the trading
department of Donald C. Sloan &
Co.

even

an
.

Richard J. Buck & Go.
To Admit New Partners
Richard J. Buck & Co., 39 BroadNew York City, members of

faster rate because of the level-

way>

the New York Stock Exchange, on

management

Murphy With
Schirmer, Atherton

Mr. Mumhv

been in the investment business in

school population

because

established

are

Richard H. Adams

ing off of sales costs, and if the

Secretary-

Richard F.

r'rmffrocc Strppf

revenue

cars

this

and

liberal
...

dividend

their

policy, then
,

thmk

continues

will be justified in say-

(Special to The Financial Chronicle)
country then committed as to fuPORTLAND,' MMn^-Richard Jf* that Stuart vi u Company is
Hall * j?
ture tariff policy, and general
,
ment has been its lack of a spe- peace assured, there would remain F. Murphy and George L. Golder the security we like best, lor those
cific program for halting reflation no obstacle to a general return to have
become associated with interested in assuming the risks
at the point where the banks be- a gold standard. The whole world Schirmer,
Atherton & Co., 634 0£ a Sman manufacturing comvoonlt

its

unci-

(4) A further fault with conventional gold-standard manage-

ditional

this year should show improvement in earnings over the prement in earnings over tne pre-

from
irom

45.2%
45.2%

that

.at

heavier movement, of bituminous
coal the road should receive ad¬

increased to
1957, still
195Y, still

ratio last

wage

„

Ine Hope Aneaa

at the end

year,

world
on

the

conventional thinking
on
this
ARLINGTON, Va.—Ralph J. Gay
whole subject have to offer. I js engaging in a securities busihave submitted that the concept ness from offices at 1224 North
of a "normal" level of general Meade Street under the firm name
production is an almost indis- Gf Ralph J. Gay Investment Co.
pensable and most convenient intellectual tool both for evaluating
Schweickart to Admit
proposed monetary programs and
^
for guiding current monetary poli p°U?
-it
0I1j
icy. And I have also submitted and Gilbert C. Fonda will be adthat a most serious obstacle to 1i11ited. i.0 V
Partnership m
world (currency stabilization re- Schweickart & Co., 29 Broadway,
mains uncertainty as to our tariff JJew -(>or,
members of the
policy.
The final question then New York Stock Exchange.
arises as to the prospect for a
rr
c
change in this tariff policy.
rorm Lxec. Securities
„«
xi,
x\
' • Executive
Securities Co. has

settle

inter

i hntnlthmu.h

"f i?nnnPri JhniM^

Toronto, Sept. 28 and 29.

(3)

an-

expenses

decline,

gross revenues

Working capital

„•

has been able to cut back

level,

should be let find their own
!

•

They

is
enables

last year amounted to $55,000,000

base

tion's carriers.

Exchange Firms Ass
Govs. Meetings

The proper function of a
gold standard is often said to be
that of maintaining stable general

reserves.

further

revenue

nli,.PfS .yt-cii.
lempicveuiiig

it is

|'e„=„at™

An early *!a11 meeting is scheduled for the Royal York Hotel in

excellent

This

condition.

other factor which
railroad to cut back

$432,300,000 in 1957. Hownet income for the year ag-

ever,

V"®"® IfVOTMMV®

discussion has attempted to show the contribution

being

physical

traffic

limit

upper

garded

provide for better utilization
equipment and particularly of

from

....

industrial

The Board of Governors of the
at £38,000,000 be gradual, speculative activity in
~
—,
.
the British thus
prevented full the final year would be reduced Association of Stock Exchange Continued jrom page
normal credit expansion; their ae- to a minimum, and the temptation firms will hold its next meeting at
tion wras needlessly deflationary; to permit a boom to develop could the Pfister Hotel, Milwaukee, Wis.,
and the incident .shows how wrong be easily resisted.
May 25 and 26.
/'V"

their

maintain

as compared with $43,865,000 at
the end of 1957 and $45,106,000 at
the end of 1956. Working capital
Shipments of soft coal are in- at the end of the year was at reccreasing to the steel industry in ord levels, despite large capital
view
of higher
operating rates expenditures for both roadway
at most mills. Industry in general and equipment.
C. & O. is one
is operating at a higher rate and of the few roads which seldom
is ope:
equipment
certifithis requires a growing use of issues preferring to trust for new
r The
utility industry con- cates,
pay
coal.

British be called earlier and in

£42,900,000 by 1913
above the chosen maxito

reserves
or

raised

would have

base,
-

eiations

line.

the

Proceeds from the financing
The theories heretofore pre- will be used to refund $82,500,000
sented suggest a different pattern of
2.85% debentures maturing
compounded and tor reflation of this $30 billion April 1, 1959.

free, to take- care of itself.
A
20-year increase in British gold
reserves of only 1%% a year, even

and

—mm...

industries

Further aggresto be made to at-

are

additional

broaden

halted, and v^flffuro ImltPllllll'PC

just as expectation of further extraordireserves do between Bisbee, Aiinary profits due to higher prices
zona and New York, for instance,
vanishes, the whole false framePnrie
T+*
umrlf nl' pvnansinn in reliance on
or between Monaco and Paris.
If work of expansion in reliance on
if
the free-market price of gold is these windfall profits is bound to
fixed and held constant, and if the crash.
The temptation will be
volume of credit
is held at or strong at such a time to shirk a
near
some
chosen ratio to gold, sharp application of the brakes,
then
a
deficiency or excess of
reserves
can be
depended upon, permits th 1
allowed to fix themselves,

motive power.

moves

tract

reserves) $2; $4; $6; $8; $10 billion. -W i th the
orjack
F.
Fortnum
By the end of five years we would ^yion
then have booming business, ris-, ^amzaiion ne
ing prices, high "windfall" profits ^ill activate and direct a program
due to these rising prices, active for expanding the firm s sales op-

limits

inumi-

eral Life &
Casualty Co.,
in
Battle
Creek, Mich,

The wrong way to reflate is to

rapid a re-expansion
as
possible of this $30 billion in
some such pattern of annual additions as (after allowing for
changes due to changes in gold

enabled

stable

earnings over the
years.
In addition, it has made
large
capital expenditures over
the years and its property is re-

taining earnings.
sive

has

fairly

hut in recent a
but in rpfpnt years
to
diversify its

Vice-President of Fed-

encourage as

money

paper

This

plants on line.
:
This has been a factor in main-

Mr. Fortnum resigned

Reflation Errors

the
iforces of supply and demand, a
very different service.
s,
credit

able

traffic by locating new

of gold

use

penditures HU UV V A J. ■. as gross J.-V* V V* '
as soon
reveUVJ.XUA V VIA.
W J. V/tJO
nues declined to a greater extent
than the majority of railroads,

and

by $3() biUion in addition to
any credit increase due to intervening increases in gold reserves,

Thinking

serted

back

Gold-Standard

—

Earnings V/A. Chesapeake & • Ohio
AAAI.IWM of x&AVMtAJs/ -W VIA ».
"V
Railway this year are expected
to show further improvement as
compared with a year ago. The
road
is the largest bituminous
.A—*

omit paper money), the
question is how to "reflate" credit

lion

practice.
1

credit

norm

(1329)

The Commercial and Financial Chronicle

was

April

will

admit

Richard

J<^eph

Ohnsted and Daniel Van Dyke to

general partnership, and Josephine

Buck to limited partnership.
With A. E. Aub Co.
(Special to The Financial Chronicle)

The Commercial and Financial Chronicle

(1330)

Thursday, March 19, 1959

* INDICATES

Now

Securities

Registration

shares.

market.

Price—At

stocks and

additional 1,000,000

Proceeds—For

shares of

investment.

Acme Oil Corp., Wichita, Kan.
(letter of notification) 95,830

Feb. 4

shares of common
(par $1). Price—$1.50 per share. Proceeds—For
development of oil and gas properties. Office—Orpheum
Bldg., Wichita, Kan. Underwriter—Lathrop, Herrick &
Smith, Inc., Wichita, Kan.

trust

stock

holders

Business—Manufacture, sales and distribution
novelty items, toys and costume jewelry. Office ~
146 West 28th St., New
York, N. Y.
Underwriter —
Darius Inc., New York.

rently and

are

one

each

lor

held.

Price—$30 per share. Proceeds—To reduce shortterm bank borrowing and for working capital.
Office—
c/o Edgar L. Miller, President, 20725 Shaker Blvd.,

cur¬

the remaining 340,660

No public offering expected.

selling

stockholders.

(par $1),
publicly and

ic Ampex Corp.

(4/3)
shares of

common

stock

supplied by amendment.

are to be reserved for sale to the holders
debentures due 1962 issued by DeCoursey-Brewis
the company's parent (payment for the

by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares
purchased
for cash

rate of

one

•

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,

per

Alaska.

Underwriter—To be named by amendment.

• Alco Oil &
Chemical Corp.
March 5 filed 500,000 shares of

supplied

stockholders.

by amendment.
Office

—

Trenton

stock.

Proceeds
Avenue

—

and

William

Street, Philadelphia, Pa. Underwriter—Chace, Whiteside
Winslow, Inc., Boston, Mass.; and Ball, Burge &
Kraus, Cleveland, Ohio.
Allied Publishers,

Inc., Portland, Ore.
22,000 shares of common
per share.
Proceeds—For

general corporate purposes. Office—665 S.
Ankeny St.
Portland 14, Ore. Underwriter—First Pacific
Investment

Corp., Portland, Ore.
American Asiatic Oil
Corp.
Nov. 24 filed 100,000,000 shares of
capital stock. Price—
Two cents per share. Proceeds—To
selling stockholders.

Office—Magsaysay Building, San Luis, Ermita, Manila,

Republic of Philippines. Underwriter
Gaberman
Hagedorn, Inc., Manila, Republic of Philippines.

American .Buyers Credit Co.
Nov. 13 filed 5,000.000 shares of
common
stock, of which
4,545,455 shares of this stock are to be offered for
public
sale at $1.75 per share.
[Shares have been issued or are
Issuable under agreements with
various policy holders
in American Buyers Life
Insurance Co. and American
Life Assurance Co.
(both of Phoenix) permitting them
to purchase stock" at
$1.25 per share. Sales personnel
have been given the
right to purchase stock at $1.25
per share up to the amount of commission
they receive
on stock sales made
by them.] Proceeds—For the opera¬
tion of other branch
offices, both in Arizona and in other
states. Office—2001 East
Roosevelt,

Phoenix, Ariz.

derwriter—None.
•

American

Enterprise

Fund,

Inc.,

New York

Oct. 30 filed 487,897 shares of common
stock.
net asset value.
Proceeds—For

investment.

—Edward A.. Viner
Now being made.

Un¬

Co., Inc., New York.

Price—At

Distributor

Offering—

American Growth
Fund, Inc.,
Nov. 17 filed 1,000,000 shares of
cent).

Price—At

market.

Denver, Colo.
capital stock (par one
Proceeds—For investment

Office—800 Security
Building, Denver, Colo.
Underwriter—American Growth Fund
Sponsors, Inc., 800 Se¬
curity Bldg.. Denver 2, Colo

American Investors
Feb.

mon

Syndicate, Inc.
notification) 100.000 shares

stock

(letter

(par 10 cents).
Proceeds—For operation of
—

513

International

Trade

Price—50
an

cents

per

apartment hotel.

com¬

share.

Office

Mart, New Orleans

12, La.
Underwriter—Assets Investment
Co., Inc., New Orleans
Louisiana.

American-Marietta Co.
Feb. 12 filed 3,500,000 shares of
common stock
(par $2)
and 67,310 shares of 5%
cumulative preferred stock
(par
$100) to be used in connection with the
acquisition of

$400,000 of bank loans

purpose.

Office—621

Sixth

Underwriter—Dillon, Read

common

for

each

offered

four
to

part of claims,

held; unsubscribed shares
creditors in payment of all
at the rate of one share for each $4
current

of claims
after

discharged; rights to expire about two weeks
mailing of offer. Price—$4 r"" share. Proceeds—

pay current creditors., Addres.
P. O.. Box-506,
Bridgehampton, L. L, N. Y. Underwriter — None. Offer¬

ing—Has been delayed.

York.

• Broad Street Investing Corp.

Armco Steel

March

filed

(N. Y.)
(by amendment) an additional 2,500,000
shares of capital stock.
Price—At market.
Proceeds—
For investment.
./•...
March

Corp. (4/1) '
$75,000,000 of 25-year sinking fund de¬

bentures due 1.984. Price—To be supplied
by amendment.
Proceeds—For plant expansion program. Underwriter—

filed

...

Smith, Barney & Co., New York.
.....

Nov. 28 (letter of
notification)
stock (par $1).
Price—$8.50

—

will

selling stockholder.' Office—1830 South 54th Ave.,
Chicago, 111. Underwriter—Hornblower & Weeks, New

repay some

(par $1) to be offered for subscription by stock¬
1, 1958 on the basis of one new

—To

selling

holders of record Nov.

Price—Related to the current market price on the
New York Stock Exchange at time of
offering. Proceeds

Price—

Proceeds—For working capital.
Co., Inc., San Francisco and

stock.

(4/2)
common

Bridgehampton Road Races Corp.
(letter of notification) 15,000 shares of

Electronics Corp.
(3/24)
100,000 outstanding shares of common

filed

(4/3)

Oct. 23

Amphenol-Borg

March

Light Co.

about April 2, 1959; rights to expire
16.< Price—To be supplied by amend¬
Proceeds—To be used for property additions and

stock

Underwriters—Blyth &
Irving Lundborg & Co., San Francisco,

the 6% debentures of the parent at the
for ea"ch five shares purchased.
Price—$1.25

St., Rapid City, S. Dak.
Co. Inc., New York.- •

New York; and
Calif.

for

Power

improvements and to

(par $1)

Minerals Ltd.,

431,200 shares

obtained primarily for such

to be offered for subscription by common stockholders
at the rate of one new share for each 10 shares held
on April
2; rights to expire on April 17. Price—To be

of 6%

selling stockholders.

•

about April

ment.

Underwriters—Kidder,

March 12 filed 204,191

Hills

llshares held
on

Peabody & Co., and Blyth & Co., Inc., New York.

Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock
of which 1,000,000 shares are to be offered

Proceeds—To

March. 13 filed 32,198 shares of common stock (par $1),
to be offered, for subscription by holders of
outstanding
common stock on the
basis of one new share for each

AMP Inc. (4 '1)
March 9 filed 104,000 shares of endorsed common stock
(par $1). Price—To be supplied by amendment. Pro¬

ceeds—To

Armstrong Uranium Corp.
(letter of notification) 3^0.00,000 shares of

Brockton

Edison

Co.

(4/22) r
March 6 filed 40.000 shares of preferred
stock (par $50).
Proceeds—-To
reduce short-term
bank
loahs.
Under¬

Jan. 16

writer—To be determined by competitive
com¬
bidding. Probcent). Price — 10 cents 'per' gHarer" able-bidders: Halsey, Stuart & Co. Inc.; Stone & Webster
Proceeds—For mining expenses. Office—c/o
Securities Corp.; Kuhn^'Lcreb
Cor; BfiWsMwa -Bros.- &,
Hepburn T.
Hutzler and Wood, Struthers--& Co.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
(jointlyKidder,
Peabody & Co., White, Weld & Co. and Shields & Co.
writer—Bruno-Lenchen, Inc., Pittsburgh, Pa./
(jointly). Bids—To be ^received up to 11 a.m. (EST) on
Associated Bowling Centers, Inc.
April 22 at 49 Federal St., Boston,: Mass..
Nov. 24 filed 300,000 shares of 20-cent cumulative con¬
stock

mon

(par

■>

one

vertible preferred stock (par one
cent) and 50,000 out¬
standing shares of common stock (par one. cent). The

preferred shares

are

to be offered for public sale for the

of the company and the common shares will
be offered for the account of a
selling stockholder. Price

—

—To be

new

—

amendment.

Atlas
Feb.

$10).

Offering—Expected in two weeks.

Investment Co.

filed

50,000 shares of

Price

—

$25

per

common

share.

voting stock (par

Proceeds

—

Reno, Nev.

Un¬

derwriter—None.

improvements;

buy

additional

ranch

Queensland, Australia; and for other corporate purposes.
Office—1301 Avenue L,
Cisco, Tex. Underwriter—None.
Robert Kamon is President.
Automatic Canteen Co. of America
March 2 filed 292,426 shares of common
stock, of
the company proposes to issue 126,072 shares to
Inc. for the latter's property and

Feb.

fered

Brothers, Chicago,

filed

30,000 shares of

certain

Ben

Franklin

III.
common

stock

being of¬

Franchise Holders.

Com¬

provides services and merchandise to Ben Franklin
Stores.
The offer expires ? on
April 2, 1959.
Price—
S36.58 per share. Proceeds—For working
capital. Under¬

pany

writers—None.

Statement

effective

California Electric Power Co.
Feb.

March "5.

(3/31),

27 filed

Proceeds

—

300,000 shares of common stock (par SI).
To reduce bank loans. Underwriter
To be
—

Banners Fidelity Life Insurance Co.
Feb. 28,1958, filed 258,740 shares of common

$1), of which 125,000 shares

are

to be

which,
A.M.I.

stock (par

offered

publicly

133,740 shares to employees pursuant to stock
pur¬
Price—To public, $6 per share. Proceeds—

chase options.

For expansion and other corporate
purposes. Office—At¬
lanta Oj
Underwriter—None

Bankers Preferred Life Insurance Co.
Jan. 30 (letter of notiifcation) 100,090 share*? of
stock (par $1.60).

Price—$3

per

share.

by competitive bidding. Probable bidders:
Lynch, Pierce, Fenner & Smith Inc.; The First
Boston Corp., Carl M. Loeb, Rhoades & Co. and
Bear,
Stearns & Co. (jointly); White, Weld &
Co.; and Kidder,
Peabody & Co. Bids—To be received up to 9 a.m. (PST)
Merrill

March 31 at office of O'Melvany &
Myers, 433
Spring St., Los Angeles 13, Calif.

•

California

common

Proceeds—For

So.

Financial

Corp. (3/24)
100,000 shares of capital stock (par $1).
Price—To
be
supplied by amendment.
Proceeds—To
selling stockholders.
Office—San Jcse, Calif.
Under¬
Feb.

assets, and the re¬
maining 166,354 shares are to be issued upon the exercise
of stock options.
Underwriter—None.

and

Butler

determined

Australian Grazing & Pastoral Co., Ltd.
Jan. 13 filed 4,000,000 shares of common stock. Price—
At par (56V4 cents per
share). Proceeds—To purchase
for

•

purchase

additional contribution certificates of Great Basin Insur¬
ance
Co.
Office—704 Virginia Street,

cattle;

Brookridge Development Corp.
19 (letter of notification) $200,000 of 6%
15-year
debentures.
Prices—At par ($500 per unit).Proceeds—For expansion and working capital. Office—
901 Seneca Ave., Brooklyn 27, .'N. Y.
Underwriter
Sano & Co., 15 William St., New York, N. Y.
Dec.

convertible

account

supplied by amendment. Proceeds—To acquire
bowling centers and increase working capital (part
to be used in
defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center.
Office—
135 Front St., N. Y.
Underwriter
To be named by

'*",%■* '

29 filed

ir Black

Heights, Ohio. Underwriters—E. R. Daveport &
Co., Providence, H. I. and Merrill, Turben & Co., Inc.,
Cleveland, Ohio.

common

offered

Go., Los Angeles, Calif.

Products Co.

Mining Corp. Ltd.
.'"-q,
800,000 shares of common stock (par $1).
Price—Related to market price on Canadian Stock Ex¬
change, at the time the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three
years as follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the- Mir.
Wright area in Quebec)-, for general prospecting costs;
and for general administration expenses.-Office—Mont¬
real, Canada. Underwriters — Nicholas Modinos & Co.
/(Washington, D. C.) in the United States and by Forget
& Forget in Canada. Statement effective Jan. 27. '
'

Shaker

shares in the future.
supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif. Underwriter—Lester, Ryons
Price—To

basis

the

444,246 shares of common stock (par 10
Price—At prevailing market price, in the Over-

Bellechasse

Oct.

(letter of notification) 10,000 shares of common
(par $1) to be offered for subscription by stock¬

capital.

Inc.'

filed

Underwriter—None.

March 3

''K/ :/'•■•/:/•:>'

the-Counter Market.

Service, Inc. Offering—Expected early in 1959.
American Vitrified

,/• '/■////■'

Basic Atomics

March

Inc.
1958, filed 375,000 shares of common stock (par
$1). Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for working capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
derwriter—Amos
Treat
&
Co., Inc., of New York.
Change in Name—Formerly United States Telemail

notification) 50,000 shares of cumula¬

Alaska Juneau Gold Mining Co.
29 filed
640,660 outstanding shares

may

American Telemail Service,

Industries, Inc.

>Q'''

Bargain City, U. S. A., Inc.
Dec. 29 filed 5,000,000 shares of class A common stock
(no par). Price—$3 per share. Proceeds—For expansion
and acquisition or leasing of new sites.
Office — 2210
Walnut Street, Philadelphia^ Pa." Underwriter—None.
r

Feb. 17,

tive preferred stock (par 75 cents). Price—$1
per share.
Proceeds—For general corporate puposes and woking

Dec.

cents).

—

300,000

Colo.

Co., Inc.

dent.

Wesley Zaugg & Co., Kensington, Md.,
Williams, Widmayer Inc., Washington, D. C.

stock, of which

2,500 shares of preferred

construction loans.
develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

Associates, Inc.
Dec. 1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.

...

incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2,

notes, second trust notes and

Company

Advanced Research

• Aida

and

ISSUE

expenses

Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first

stock

March 16 (letter of

stock

common

REVISED

v:,;„

companies, of which 677,900

American Mutual Investment

Corp., New York.

Underwriters

of other

stock have already been issued.

Sponsor and Distributor—David L. Babson Management

and

assets

ITEMS

•

;

^ Aberdeen Fund, New York
March 9 filed (by amendment)

ADDITIONS

SINCE

filed

writer—William R. Staats & Co., Los
Angeles, Calif,

i Cambridge Life Insurance Co.
March 5 (letter of notification)
300,000 shares of com¬
mon stock (par 30 cents).
Price—$1 per share. Proceeds
—To

operate an insurance company. Office—1810 First
National Bank Building, Denver 2, Colo. Underwriter—
None.

ic Carlon

Products Corp.,

Aurora, Ohio

(4/1-3)

March 12 filed 100,000 shares of common stock
Price—To be supplied by amendment.

(no par).

Proceeds—For

additional working capital and other
corporate purposes.
Business—Manufacturer of plastic pipe and
pipe fittings.

Underwriter—Shearson, Hammill & Co., New York.

Volume

Number 5830

189

of Consolidated Coppermines

•

C-E-l-R, kic. (3/26W.A..
27 (letter of notification) 34,750 shares of class A",
common
stock (par $1), of which. 8,000.-shares will be
reserved for employees.
Price—$6.50 per. share.
Pro¬
ceeds—For working capital.
Office—734 Fifteenth St.,
N. W., Washington, D. C.
Underwriter—Alex. Brown &
Sons, Baltimore, Md.

solved

Feb.

Cemex of Arizona, Inc.

if Charlottesville Parking Center, Inc.
(letter of notification) $408,000 of 6% discount
debentures to mature July 1, 1974 together with 45,000
shares of common stock (par $1) being offered in units
consisting of 150 shares of common and one $1,360 face
amount - discount
debenture.
Price — $1,000 per unit.
Proceeds—To constructs parking lot for off street park¬
ing. Office—Charlottesville, Va. Underwriter—None.

March 4

Corp., which is to be dis¬
Underwriter—None.

and liquidated.

if Channing Service Corp. (N. Y.)
March 12 filed (by amendment) an additional $20,000,000 of investment programs. Proceeds—For investment.

Nov. 17 (letter of notification) 300,000
stock (par 25 cents). Price—$1 per-

shares of common
share. Proceeds—
For working eapital.
Address—P. O.'Box 1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L. A. Huey Cd.,
Denver, Colo„
*

(N. Y. )
(py amendment) an additional 2,000,000

it Central Power & Light Co. (4/14) A>;~::
March 16 filed $11,000,000 of first mortgage bonds, series

if Chemical Fund, Inc.
March

12 filed

1989A Procefcds-^-To fi^ajideJpart of com¬
pany's construction costs and to jpi*epafc" ;and discharge

1/ due April

Blyth■--SfciIhc;jA I^luhanA!^^
Glo.re Forgan- & Go. (jointly); Kidder; Peabody & Co.;
Pierce, Fenher & Smith and Salomon
Bros;A&-- Hutzler. (jointly);. .Kuhn,;Lo.eb - &;-Co., A. C.

Altyn & - Co.^ .Inc.; and Bear,-Stearns(jointly);
Eastman Dillon, Union Securities &;Co. Bids—Expected
to be received up to 11 a.m..:(EST).?on April 14.

Chicago Aerial Industries, Inc. (3/24)
filed 160,000 shares of common stock (par $2),
shares are to be offered for the account
of certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For working capital. Office—1980 North
Hawthorne Ave., Melrose Park, 111. Underwriter—Blyth
of which 80,000

Corp;- ■";A:
$8,040,200 of 5%% subordinated deben¬
(convertible until Decv31, 1968) and 61,-

filed

522 shares of

stock to be issued to stockholders

common

St., Baltimore 2, Md. Underwriter—White, Weld
Co., Baltimore, Md., and New York, N. Y;

Feb. 27

-Cerro de Pasco
4

March

(

brf-

tin

Read'&

(Dillon,

Co.,

Mart* 20

McQuay, Inc.

$15,000,000

Inc.)

Cprp.—

March 23
General Transistor

AaAA/AAA

Debentures

$2,131,000

(Monday)

Pik;LtdL-

Tliorneliffe

CBache

#03-"

# A/ A A

Servateria

United States

4,000- units

March 24

'.A-'-

Little

(Bids

Common

(Bids

Louisiana

Common

Weeks>- 100,000 shares

Staats

100,000

Co.)

Chicago Aerial Industries, Inc.—
!

Xv.

Cleveland

In7*

-IT

*•

Common

(Blyth & Co., Inc.) 160,000'shares A''"AA'"'"

Illuminating Co._—Bonds

Electric

A,'A..; :J-/A

(Bids 11 a.m. EST) $25,000,000

$75,000,000

Co.)

A(Bache. ifc
"

f.r%

Co.)

$5,891,280

■

March 25

Bonds

(Wednesday)

Fair Stores,

Food

Inc.--A_AA4______

Debentures -

(Offering to stockholders—underwritten by Eastman
.A Union Securities & Co.) $21,750,000 A

"■

„

F X

(Smith,
A •-.A"'"*

Barney

Kuhn,

Aaa''#

Debentures
A

Stone

J A

40,000

(Thursday)

(Alex.

Brovrn

Sons)

Common

Equip. Trust Ctfs.

Texas & Pacific R>t__
(Bids

noon

CST)

March 27

$3,000,000

(Friday)

Co..

by Merrill, Turben

$2,313,500

Inc.)

Common

Telephone
399,000

Dalton

Finance

Fed-Mart

Ford
•

Blyth

Co.;

Motor Co.—
&

Co.,

Kuhn,

Pierce.

Fenner

Smith, Inc.;
2,000,000

Glickman
■

Gold

Weld

(Bache

Fuller

Co.)

Preferred
Co.)

Union

$1,250,000

Common
Securities & Co.)

$1,877,700

Common

Inc.
Brothers

(Bids to

7
be

April 8

$33,577,000

Corp

Co.)

46,200 shares

(Tuesday)

Equip. Tr. Ctfs.

invited) $2,475,000

(Wednesday)

Electric Co., Ltd
Bonds
(Dillon, Read & Co., Inc. and Dean Witter & Co.) $10,000,000

Hawaiian

Electric

(Bids

(Tuesday)

.—Bonds
a.m.

EST) $3,500,000

a.m.

EST) $2,000,000

Preferred

(Bids

(Offering

(Thursday)

to stockholders—no

May 25
West Penn Power
(Bids

Common

underwriting) 821,256 shares

(Monday)

Bond®

—

noon

EST)

$14,000,000

(Tuesday)

Consolidated Edison Co. of New York, Inc—Bonds
(Bids 11 a.m. EDT) $50,000,000 to $60,000,000

Southern Electric

(Thursday)

Bonds

Generating Co.—

(Bids to be invited)

$500,000

_•

Dillon,

Pittsburgh & Lake Erie RR

Common

Products
(S.

& Co.)

Paso

Bonds

$16,000,000

Electric

May 28

Debentures

April

Corp.

Seal

and White,

Corp.

(Stern

Paso

-Bonds
Co.__

EDT)

a.m.

May 26

Inc

Common

The First Boston Corp.; Goldman, Sachs
8c Co.; Lehman Brothers; Merrill Lynch.

Inc.;
Loeb

Common

(Monday)

Kimball & Co.)

$5,500,000

PST)

a.m.

May 21

32,198 shares

April 6

76,494 shares

Consolidated Natural Gas Co._

Light Co

Inc.)

11:30

$7,000,000

(Friday)

Massachusetts Companies..
Common
(Offering to stockholders—underwritten by The First Boston
Corp. and White, Weld & Co.) 177,626 shares

Harzfeld's

(Monday)

EST)

Western

("'a-tman

(Bids

stockholders—underwritten by Dillon, Read & Co.

(Paul C.

(Offering to stockholders—underwritten by Courts & Co.)

March

(Offering to

Debentures

Gray Drug Stores, Inc
(Offering to stockholders—underwritten

a.m.

Corp.)

Nevada Power Co

Southwestern Electric Power

and Ball, Burge & Kraus)

Ampex Corp,
—Common
(Offering to stockholders—underwritten by Blyth & Co., Inc.,
and
Irving Lundborg 8c Co.)
204,191 shares ;

$173,875

Black Hills Power &

C-E-I-R, Inc., Washington, D. C

Securities

Southern

Bonds
April 3

120,000,000

(Tuesday)

May 12

May 19

Common

Co
(Bids

Bonds

Power Co

(Bids

500,000

•

$30,000,000

Webster Securities Corp.)

March 26

Inter-Mountain

Gulf Power

Upper Peninsular Power Co.____riA__
Common
(Kidder, Peabody & Co., Paine. Webber; Jackson & Curtis and

*4-'

$1,500,000

Co.)

Paso

'Thursday)

APrii 2

(Chacc, Whiteside & Winslow, Inc.
:

Bonds
invited)

to be

Equip. Trust Ctfs.

Electric Co
Common
(Offering to stockholders—underwritten by Stone & Webster

25,000 shares

Alco Oil & Chemical Corp

Co
(Bids

Alabama

(Bids noon EST) $7,620,000

.....

Edison

Inc.)

Southern Pacific Co

Co.,

(Cruttenden, Podesta & Co. and Clayton Securities Corp.)
$2,500,000

Ohio

Common B

(Stroud & Co.,

1,800,000 shares

Miami Window Corp.
i

Preferred

—

Finance

Co., Inc.-,-Common

Morgan Stanley &
and Carl M. Loeb

Co.,

Loeb & Co.

Rhoades & Co.)

Co.

California

First

(Bids to be Invited)

Corp.) 200,000 shares

Bonds

April 30/ (Thursday)

(Stroud & Co., Inc.) $1,500,000

Ritter

——i
)
Common
(C. E. Unterbeyg, Towbin Co.) 200,000 shares

•

...Common
Co.)

Southern Nevada Power Co
Preferred
(May be Hornblower & Weeks; William R. Staats & Co. and

Common

R, Inc.^

Great Atlantic & Pacific Tea

(M. F.) Dental Supply Co. of

Ritter Finance

Dillon,

■'

J".;

166,716 shares

Co.)

(Stone & Webster Securities

•••

rT'./-}'

Common

Peabody

Smith and A. G. Becker &

Public Service Co. of Colorado
(Bids 11 a.m. EDT) $20,000,000

Delaware

Common

(Glore, Forgan & Co.) $50,000,000
j

•

(Tuesday)

April 28

Preferred

—

Pipe Co.—

(Kidder,

Patterson

Eurofund, Inc.;
.

Lock Joint

EST) $15,000,000..

(Bids 11 a.m.

■

;

50,000

iMning & Smelting Co., Ltd.—Common
(White, Weld & Co.) 75,000 shares

Montana Power CoA-A—i—

(Friday)

(Merrill Lynch, Pierce, Fenner &

Common

100,000 shares ,A

$3,500,000

& Co.)

(Bache

•

Preferred

Maine Public Service Co

Barney

Hudson Bay

Aaa/AA

$2,000,000

EST)

a.m.

Corp.—4——A———Debentures

Graham-Paige .Corp.

A'A Ar

Investors Research Fund,' Iytc;—

$5,000,000

Edison

April 24

Columbia Gas System, Inc
Common
(Offering to stockholders—bids 11 a.m. EST) 1,799,057 shares

A: #y;

#A A
Debentures

Telephone Co

Carlon Products Corp
(Shearson, Hammill 8c Co.)
-

(Tuesday)

(Bids to be invited)

Brockton

and Blyth & Co., Inc.) 104,000

Peabody & Co.

(Smith,

$14,000,000 A A A

EST)

11:30 a.m.

State

7AAA'A

——Bond»

Light Co

April 21

JT«

fWilliam

Preferred

$7,500,000

(Wednesday)

April

Diamond

A/A Aaa'1-

$11,000,000

(Bids to be Invited)

Common

Armco Steel

—Bonds

EST)

a.m.

Power & Light Co

(Bids
(Kidder,

.AriAA- AAA A

April 22 (Wednesday)

(Wednesday)

April 1

250,000 shares

Central Power & Light Co

——Bonds

AMP, Inc.

I
..Common

(Tuesday)

April 14

EST) $16,000,000

11 a.m.

—

& Co.)

(Shields

(Bids

v:AA

$300,000

(Monday)

(J. J.) & Ives Co

Wisconsin Power &

300,000 shares

PST)

a.m.

page

Common

Read, Inc

(Simmons & Co.)

Co.-——a......Common

Monongahela Power Co._A——

"•

275,000 sfi'ares

Corp..____

(Tuesday)

Electronics

(Hornblower

(Friday)

April

(Tuesday)

March 31

•

Corp

(Van Alstyne, Noel & Co.)

Ampheriol-Borg

Continued

Allen & Co.

$8,000,000

California Electric Power
(Bids

and for retirement
Office — c/o John

Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo.

^Debentures & .Common
Co.)

Preferred

Bear

(Offering to stockholders—underwritten by

,«rBarth & Co.^;$30q;000..;:F

and Salomon

Co.

Hutton &

pay additional costs of construction;
of obligations and working capital.

Scranton-Spring Brook Water Service Co.__Debens.

—Common

ThermaKPdwer

Clute Corp.

Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To

Common
213,000 shares

Stearns & Co., E.
Bros. & Hutzler) $5,600,000

Brothers,

Lehman

(Allen ,&..Co.,

1'50,000 shares 'Xf:

(Blyth & Co.', 'InA)

Public Service Co. of New Mexico

Common

_Ar—A- .Common

Ryder / System; -In<h_

—

■

High Point Chemical. Co., Inc.—__
Common
A rV'4 (Pearson^ MUrphjfASfcl(jo.,,rIncA $300,000
:■

Bonds

(Dempscy-Tegeier & Co. and Morgan & Co.)

Corp.——A.:—1

$25,000,000 of first mortgage bonds, due
1984.
Proceeds
Payment of bank loans and general
corporate purposes. Underwriter—To be determined by
competitive bidding. Probable bidders: First Boston
Corp.; Dillon, Read & Co., Inc.; Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; and White, Weld & Co. Bids—
Expected to be received up to 11 ajn. (EST) on March 24
at Room 624, 55 Public Square, Cleveland 1, Ohio.

April 13

EST> $25,000,000

a-m-

Pacific Hawaiian Products Co

(Kidder, Peabody & Co. and "Iay*en, Stone & Co.)
*•*'
4t),000 shares A AAP ' A '■

<Bids

(3/24)

Illuminating Co.

18 filed

50,000 shares

Power Co.——A————

Ohio

—

underwriting)

(No

Cleveland Electric
Feb.

Common

•

General Builders

Room

Erdman, Smock, Hosley &

—

(Loewi & Co.)

(Friday)

$2,500,000

Alstyne, Noel & Co.)

,(Van

„

shares of capital stock. Price—$20
share. Proceeds—To invest in real estate. Office3748, 120 Broadway, New York, N. Y. Underwriter
—Model, Roland & Stone, New York. Offering—Post¬
poned indefinitely.

per

—Common

Corp

Motors

•

City Lands, Inc., New York
Jan. 13 filed 100,000

CALENDAR

ISSUE

Hoffman

(Thursday)

Texas Eastern Transmission Corp.——.Preferred

participations in

company's Thrift-Stock Ownership Program, together
with 175,000 shares of common stock which may be ac¬
quired pursuant thereto.
v

vMv.

Co., Inc., New York.

NEW
-./nil;

if Chrysler Corp., Detroit, Mich.
March 11 filed $10,000,000 of interests or

St. Paul

Merrill .Lynch,

tures due 1979

Proceeds—

Chesapeake Life Insurance Co.
Feb. 26 (letter of notification) 8,500 shares of class B
non-voting capital stock (phr $10). Price—$35 per share.
Proceeds—To increase capital and surplus.
Office—611

competitive bidding.. Probable bidders/ Halsey, Stuart

March

Price—At market.

capital stock.

For investment.

A$1 Ab&nk loans; .to

<1331)

The Commercial and Financial Chronicle

...

June 2
Public Service Electric
(Bids to be invited)

$25,000,000

(Tuesday)

Debentures

& Gas Co
$30,000,000 to

$40,000,000

Virginia Electric & Power Co.
■—Common
(Bids to be received) $20,000,000 to $25,000,000
June 25

(Thursday)

Mississippi Power Co
(Bids

be invited)

September 10
Georgia Power Co
(Bids to be

$5,000,000

Bonds

(Thursday)

invited) $18,000,000

Bonds

The Commercial and Financial Chronicle

(1332)

Emerite Corp.

Continued
•

from page 39

Colorado

$220,000 of 6% unsecured

April 1, 1964 and 1,100 shares of common
stock (par $1) to be offered in units of $200 of deben¬
debentures due
tures

and

one

Proceeds—For

Price —$205

stock.

capital.

working

Office—Suite

per

unit.

421, 901

Underwriter—Associated

Sherman Street. Denver. Colo.

Gas

System,

(4/JL)

Inc.

March 5 filed 1,799,057 shares of common stock (par $10)
to be offered for subscription by common stockholders

the basis of

share for each 15 shares held

one new

April 1, 1959; rights to expire
named,

March 31.

April 20.

Price—To be ;

Proceeds—To finance System con¬

struction expenditures.

Underwriter—To be determined
bidding.
Probable bidders: Lehman >'■
Brothers and Eastman Dillon, Union Securities & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Smith. White,
Weld & Co.. Shields & Co. and R. W. Pressprich & Co.
(jointly); Morgan Stanley & Co. Bids—Expected to be
received up to 11 a.m. (EST) on April 1 at 120 East 41st
St., New York 17 N. Y.
.;

competitive

Commerce Oil Refining Corp.
Dec. 16,1957

filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares id common stock to b«
offered in units as follows; $l,00o of bonds and 48 sharer
of stock and $100 of debentures
nine shares of stock
Price—To be supplied by amen^nent. Proceeds — Tc

construct refinery. Underwriter—Lehman Brothers, New
York. Offering—Indefinite.
Commercial Investors Corp.

(letter of notification) 900,000 shares of
stock.
Price—At par (10 cents per share).

mon

investment.

Office—450

com¬

Pro¬

Main

So.

stock for each three

St., Salt
City, Utah. Underwriter—Earl J. Knudson & Co.,
Salt Lake City, Utah.
Cooperative

Grange League Federation
Exchange, Inc.
March 6 filed $250,000 of 4% subordinated debentures,
15,000 shares of 4% cumulative preferred stock, and
300,000 shares of; common stock. Price—$100 per de¬
benture, $100 per preferred share, and $5 per common
will

Proceeds—From

common

used,

the

sale

the

common

part, to repurchase such

stock

outstanding

the holders elect to tender for redeiop¬

tion, the balance to be addec! to working capital: the
proceeds from the debentures will be used to reduce
short-term bank loans; the proceeds from the preferred
stock will be used principally to provide funds for the

repurchase of the company's outstanding 4% cumulative
preferred stock and to provide funds to be advanced
to

its

subsidiary, Cooperative G. L. F. Holding Corp..
for similar purposes. Office—Terrace
Hill, Ithaca, N. Y.
Underwriter—None.
•

Cormac

Chemical

Jan. 22 filed

Corp.

108,667 units of 108,667 shares of

common

stock (par one cent) and 108,667 common stock
purchase

warrants, each unit consisting of one common share and
warrant, to be offered for subscription by holders

one

of the
rate

common

one

stock of Cormac

such

unit

for

Photocopy Corp. at the

six shares of Cormac
Price—$2 per unit. Pro¬
ceeds—To finance the company's development and mar¬
keting program. Office—80 Fifth Avenue, New York,
N- Y. Underwriter—Ross, Lyon
Co, Inc., New York.

Photography

common

shares of series

holders.

Price—$1

and/or series 2

every

held.

Price—$30

per

unit.

Proceeds

For general corporate

—

•

Inc.
(3/25-4/1)
2,500,000 shares of common stock (par $1).
share. Proceeds—For investment. Office
-^-14 Wall St., New York.
Underwriter—Glore, Forgan
per

Co., Gallipolis, Ohio
30,027 shares of common
stock (par $3.33%). Price—$8 per share. Proceeds—To
selling stockholders. Underwriter—Westheimer & Co.,
Cincinnati, Ohio.
/ v
/ :
(letter of notification)

/ Federated
z9

Corp. of Delaware

$918,000 of 6% convertible subordinated
1968.
The company proposes to offer

filed

iebentures

■

due

—

•

Dalton

Finance, Inc.

(46-10)

March 9 filed $500,000 of 7%
subordinated debentures,
due Jan. 2, 1974, with attached
warrants for the pur¬
chase of 100,000 shares of class A
common

—At face amount
(in units of $500

each).

stock.

Price

Proceeds—To

finance making of additional loans and
to reduce shortterm

debt. Office—3800-34th
St., Mt. Rainier. Md. Un¬
derwriter—Paul C. Kimball &
Co., Chicago, 111., on a

best

efforts basis.

for the outstanding 12% debentures of three subsidiaries

Office—1 South Main

)f Federated.

NT.

Finance

Federated

Nov.

Street, Port Chester.

Underwriter—None.

Co.

(letter of notification)

$300,000 of 10-year <5%
Price—At par (in delominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin:oln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha. Neb.

♦enior subordinated debentures.

• Fed-Mart Corp.
(4/6-10)
March 16 filed 170,700 shares of

stock.

common

Price—

operations of Reid Oil Co.,

a subsidiary; to reduce debt:
capital. Office—8001 Athello St., San
Diego. Calif. Underwriter—Eastman Dillon, Union Se¬
curities & Co., New York.
and

for working

•

Filmways, Inc.
(letter of notification) 12,903 shares of common
stock (par 25 cents). Price — At market (estimated at
$7.75 per share).
Proceeds—To selling stockholder. Of¬
fice—18 East 50th St., New York 22, N. Y. Underwriters
—H. N. Whitney, Goadby & Co., New York. No public
offer planned.

Feb. 27

Finance For Industry,

Inc.

Dec. 16 filed 200,000 shares of class A common stock
Price—At par ($1.50 per share). Proceeds—For working

capital.
writer

Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot Bldg., Detroit.

—

Mien

Price—$1
Proceeds—Fbr new equipment,
repayment of
acquisition of properties under
option, and other
corporate purposes.
Office—Toronto, Canada, and Em¬
porium, Pa Underwriter—None.
per

share.

loan,

Diversified Inc., Amarillo, Texas
6 filed 300,000 shares of
common stock
(par 50
cents). Price—$3 per share. Proceeds—For
acquisition
of undeveloped real
estate, for organization or acquisi¬
tion of consumer finance
business, and balance to be
used for
working capital. Underwriter
Investment
Service Co., Denver,
Colo., on a best efforts basis.
Jan.

—

• Elfun Trusts, New York
March 17 filed (by
amendment) an additional 150,000
of Trustees
Certificates, aggregating $5,949,765. Proceeds

'—For investment,

m
Corp.. (jointly),
Kuhn,
Loeb - &
Co.;
Lehman:
irothers, and Glore, Forgan & Co (jointly). Bids—Had
^een scheduled to be
received up to 3:45 pjn. (EDT) on
•lay 13 at Room 654, 101 Lndlana Ave., N. W., Washingon
25. D
C
but bidding has been postponed.

General

(

chasers

stock

Virginia class B stock for each

one

share of

common

stock.

Price

—

$110 per

Proceeds—For purchase and development of sub
land
including shopping site: for new equip

tivision

aaent
and
project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
>ther corporate purposes.
Office—700 43rd St., South,
St. Petersburg, Fla. Underwriter—None.

Fluorspar Corp. of America
Feb. 5 (letter of notification—as amended) 300,000 shares
of common stock.
Price—At par ($1 per share). Pro¬
ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties. Inc., 4314 N. E. 96th Ave., Portland, Ore.
•

Food

Fair Stores,

Inc.

(3/25)

Feb. 27 filed $21,750,000 of 20-year convertible subordi¬
nated debentures due 1979 to be offered initially for

subscription by
about

March
of

common

24.

1959,

debentures

stockholders

for

the
each

basis
25

record

$100

^ Ford Motor Co., Dearborn, Mich.

March

(3/30-4/3)

—

Marion, Ind.
30,000 shares of common stock (par $1.50).
supplied by amendment. Proceeds —To

filed

have
said

warrants

additional

900,000

common

the

will

been

Plan.

total

stock

company

are

of pur¬

company)
additional

common

forfeited under the provisions of
3,922,421 shares of the company's

and its

offered

subsidiaries.

key employees

Underwriter—None.

Merchandising Corp., Memphis, Tenn.

18 filed 250,000

shares of class "A",

common

stock

(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer
Union
Securities
Investment
Co., Memphis,
—

Tenn.

13 filed $15,000,000 of participations in the com¬
pany's Third Employees' Stock Purchase Plan, together
with an unspecified number oi shares of common stock
which may be acquired under the plan.
•

General

Transistor

Corp.

(3/23-27)

March 5 filed 40,000 shares of common stock.
The filing
also includes an additional 26,841
shares of common
stock to be offered pursuant to

options granted or to be
granted to officers and key employees of the company.
Price—Related to market price on the American Stock
Exchange. Proceeds—For new construction, machinery
and equipment and working
capital.
Underwriters —

Kidder", Peabody & Co. and Hayden, Stone
of

& Co., both

New York.

Corp.
(3/30-4/3)
3,357,700 shares of common stock. Price
—$10 per share. Proeeeds — For properties, furniture,
fixture and leasehold improvements and other expenses.
Office—565 Fifth Ave., New York, N. Y.
Underwriter
—Bache & Co., New York, N. Y.
it Glickman

March

13 filed

filed

Products Corp. (3/30-4/3)
125,000 shares of 612% cumulative

con¬

vertible preferred stock (par $10). Price—To be

supplied
by amendment. Proceeds—To be applied towards the
balance due on a mortgage held by A. J. Armstrong Co.,
Inc.; to the prepayment of certain indebtedness secured
by accounts receivable; in prepayment of two promissory
notes; and the balance for working capital. Underwriter
—S. D. Fuller & Co., New York.
Government

Employees Variable Annuity Life

Insurance Co.

Nov. 13 filed

2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,

to be offered

the basis of

334,570 shares

one

warrant per share of stock held

(1,-

outstanding); (2) to holders of
$1.50) of Government Employees
Life Insurance Co., on the basis of IV2 warrants per share
of stock held (216,429 shares are now
outstanding); and
common

—

group

stock, for offering under the company's 1958 Stock Op¬
tion Plan, plus those shares under the 1953 Plan, pre¬
viously registered for which
options had not b6en
granted at April 21, 1958, or for which options granted

Stock

Foster-Forbes Glass Co.,

^ General Electric Co.

common

Exchange. Proceeds—To the Ford
Foundation, the selling stockholder.
Underwriters
Blyth & Co., Inc., The First Boston Corp., Goldman.
Sachs &
Co., Kuhn, Loeb & Co., Lehman Brothers.
Merril Lynch, Pierce. Fenner & Smith,
Inc., and White.
Weld & Co., all of New York.

Price

subscription
rights are not exercised in at least the amount of $500,000. Price—$100 per unit. Proceeds—To repay promis¬
sory notes, and the balance, if any, will be added to
working capital, to be used in part to reimburse the
company's treasury for payments made upon the acqui¬
sition of land and as working capital for such building
projects as the company may undertake. Office—2413
Third Ave., New York, N. Y. Underwriter—None.

March 12 filed 2,000,000 shares of common stock (par $5).
Price—To be related to current market quotations on

Feb. 25 filed

sold

with

debentures

principal

held; rights to expire on April 10, 1959. Price—
At par (flat).
Proceeds — For general corporate pur¬
poses, including additional working capital and future
capital expenditures.
Underwriter — Eastman Dillon,
Union Securities & Co., New York.

the New York

agreed

are

also stockholders of the
also to purchase certain

General Tire & Rubber Co.

15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common stock,
to be offered in units of $100 principal amount of debenone

are

March

Florida Builders, Inc.
Jec. 1 filed $4,000,000 of 6%
,

and

have

amounts

of Old Dominion common stock.

;ures

warrants

(who

General

stock of Old Dominion Bank at the rate of 30

shares of First

with

tures

Feb.
common

Builders

Corp., New York (3/20)
Feb. 26* filed $2,131,000 of 6% subordinated
debentures,
due April 30, 1963, with detachable warrants to
pur¬
chase 213,100 shares of common stock (each $100 de¬
benture will be
accompanied by a warrant for the
purchase for cash of 10 common shares at $3 per share
at any time beginning Oct. 30, 1959 to and including
April 30, 1969). The company proposes to offer holders
of its outstanding common
stock and its outstanding
cumulative preferred stock of record March 20, 1959, the
right to subscribe to a total of $1,631,000 of the deben¬
tures with warrants.
The remaining $500,000 of deben¬

■

First Virginia Corp.
Feb. 12 filed 1,154,730 shares of class B

stock

June 5 filed 350,000 shares of
common stock.

■

who

$11 per share. Proceeds—For acquisition of land, build¬
ings and fixtures for two new stores; for expansion of

amount

Person Mines Ltd.

Jnderwrlter—To be determined bycompetitive
bidding,
•robable bidders: Biyth & Co. inc., and The First Boa-:

„

$210,000 of the debentures to purchase the capital stock
jf Consumers Time Credit, Inc., a New York company;
$442,000 of the debentures in exchange for Consumers

mit.

•/

14, 1957 filed 426,988 scarei of common A stock {at
and 1,537,500 shares of common B stock (par $1).
Proceeds—To the Attorney General of the United State.
ar)

Evans Grocery

(par $1), to be offered in exchange for 38,491 shares of

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock
(par 10 cents). Price—$2 per share. Pro¬
ceeds
For repayment of
loan; purchase of plant and
office equipment; raw materials and
supplies; and to7
working capital, etc. Office—U. W. National Bank
Bldg
1740 Broadway. Denver, Colo.
Underwriter—L. A. Huey
Denver, Colo

General Aniline G Film Corp., New York
an.

& Co., New York.

Dec.

short-term

notes payable to Manufacturers
to/acquire machinery and equipment;, for
expansion and working capital.
Underwriter — C. E.
Unterberg. Towbin Co., New York.
'
:
V

Eurofund,

Feb. 9

debenture bonds due

$250,000 of
Trust Co.;

Feb. 26 filed

Price—$20

common

company and its subsidiaries under a stock option
plan; and (b) snares heretofore purchased or to be pur¬
chased by optionees under said plan
upon exercise of
options granted pursuant to the plan, which may be
resold by such persons to the public from time to time.

Office — 1008 Sixth St., N. W., Washington,
Underwriter—Simmons & Co., New York.

D. C;

Proeeeds—To

redeem at par. $127,500 of
July-2, 1972, which are owned
equal shares by the selling stockholders, and to repay

purposes.

March 16 filed 145,398 shares of common-stock, includ¬
ing (a) shares which are being offered from time to
time by company to certain
key management employees

©f

amendment.

warrant.

• Crowell-CoHier Publishing Co.

Proceeds—To selling stockholders.

R, Inc., New York (3/25-26)
,
March 3 filed 200,000 shares of common stock (par
$1),
of which 100,000 shares are to be sold for the account
of selling stockholders.
Price
To be .supplied by

Erdman, Smock, Hosley & Read, Inc. (4/10)
(letter of notification) 100,000 shares of class A
common stock and 10,000 stock purchase warrants, to be
one

F X

Feb. 26

units of 10 shares of stock and

for

2a. Underwriter—None.

Street, Jackson, Miss. Underwriter

offered in

Investment

filed 231,988

fered

held; unsubscribed shares to other stock¬
Rights expire 30 days from offering date.
per share.
Proceeds—For working capital.

Office—333 S. Farish

Thursday, March 19, 1959

Corp., Atlanta, Ga.
shares of common stock to be of¬
subscription by'stockholders; unsold portion
o be offered publicly. Price—$12.50 per share/ Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,

/an.

stock

common

Bake

share.

Foundation

the basis of one share of series 3

iebentures; and $226,000 of the debentures in exchange

Nov. 23

ceeds—For

—None.

Securities 412 Main Street, Cedar Falls, Iowa.
Columbia

by stockholders

selling stockholders.
Underwriter — Raffensperger,
Hughes & Co., Inc., Indianapolis, Ind.
/

Jan. 19 (letter of notification) 250,000 shares of series 3
common stock
(no par) to be offered for subscription

Water & Power Co.

Feb.-25 (letter of notification)

stock

are

now

(par

(3) to holders of

common

stock (par $5) of Government

Volume

189

5830

Number

...

The Commercial and Financial Chronicle

Employees Corp., on the basis of Vz warrant per share of
stock held (as of Dec; 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible capital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
converted into common stock prior to the record date,

a total of
164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
\ Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
",j Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed pending Supreme Court de¬

cision

variable annuities.

shares of 6% cumulative pre¬
ferred stock {par $10— convertible until April, 1969).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans incurred in connection with purchase of
capital stock of Madison Square Garden Corp. Business
—A closed-end non-diversified management investment
filed

350,000

Underwriter—Bache & Co., New York.

^ company.
•

Gray Drug Stores, Inc. (3/27)
"•March 6 filed $2,313,500 of convertible debentures due
"1974, to be offered for subscription by common stockholders of record on or about March 27, 1959, on the
fbasis of $100 of debentures for each seven shares held;
'■rights to expire on April 14. Price—To be supplied by

amendment.

Proceeds—To retire term loan indebtedness

and the balance
:

for

capital.

„

•>

issued by .the company as

of note

part

Consideration for the assets of The King Drug Co.;
capital expenditures; and the balance for working

of the

Underwriter

Cleveland, Ohio,

Merrill,

—

Turben

Co.,

Inc.,

•

Great Atlantic & Pacific Tea Co., Inc.

(3/25)

March 4 filed 1,800,000 shares of common stock (par $1).
Price — To be supplied by amendment. Proceeds—To

selling stockholders. Underwriters

—

Smith, Barney &

Co., Morgan Stanley & Co., Kuhn, Loeb & Co. and Carl
Co., all of New York.
.

;

M. Loeb, Rhoades &
'

Great

Lakes

Natural

Gas

Co., Inc.
Feb. 12 (letter of notification) 150,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
For drilling wells and working capital. Office—632 W.
9th St., Erie, Pa. Underwriter—John G. Cravin & Co.,
"

New York.
American

Markets,

Inc.

March 17 filed 300,000 shares of common stock. Price—
To be supplied by amendment.
Proceeds—For advance
rental payments, purchase of inventories and working

Business—Operates eight super markets. Office
•—7814 East Firestone Blvd., Downey, Calif. Underwriter
—J. Barth & Co., San Francisco, Calif.
Offering—Ex¬
pected sometime in April.
capital.

Feb.

Freehold

Leases

Ltd.

5 filed

563,600 shares of common stock to be of¬
fered in exchange for $2,818,000 of 5V2% convertible
sinking fund redeemable notes, series A, due July 1,1976,
on the basis of 200 shares for each $1,000 note.
Office—

stockholders

convertible

preference

stock

held

the

stock

for

basis

each

about Nov. 1,
Stockholders will have 45 days in which to exer¬

1958.

cise

subscription

common

the

rights. Price — At par. Proceeds—To repay
debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under,
writer—None:

Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
stock
(par $1).
Price—$5 per share.
Proceeds—For
payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3^ N. Y. Underwriter—Albion Securities Co., Suite 1512,
Oct. 22

Broadway, New York 4, N. Y.

★ Hermetic Seal Corp.
March 9 (letter of notification) 100,000 shares of class A
common stock
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For payment of

the balance of owed moneys to

creditors; to equip a plant in the Midwest area; for a
modern research development laboratory and
working
capital.
Office—744 Broad St., Newark, N. J. Under¬
writer—Amos Treat & Co., Inc., New York.
★ Hickerson Bros. Truck Co., Inc.
March 11 (letter of notification) 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
pay existing liabilities; for additional equipment;
and
for working capital.
Office—East Tenth Street, P. O.
Box 68, .Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.
High Point Chemical Co., Inc. (3/23-27)
March 3 (letter of notification) 300,000 shares of com¬
mon stocks
(par 10 cents). Price—$1 per share. Proceeds
—For production equipment for
nylon conversion proc¬
ess;
to establish factory and offices and for working
capital.
Office — 44 Shore Drive, Great Neck, N. Y.

Underwriter—Pearson, Murphy & Co., Inc., New York.
Highway Trailer Industries, Inc.
24 filed 473,000
outstanding shares

Nov.

common

stock (par 25 cents).

Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds — To
selling stockholders. Office—250 Park Avenue, N. Y.

Raceway, Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,of capital stock, and 2,000 debenture notes.
common

stock at par

($1 per share) and the
each. Proceeds—For construction
land, grandstand, mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and
notes in units of $500
of a track, including

clubhouse.

Underwriter—None.

Hoffman

Motors

(3/30-4/3)

Corp.

March 9 filed 260,000 shares of common stock (par
of which 250,000 shares are to be publicly offered

$1),
and

10,000 shares to officers and employees.

Price—$10 per
shares to public; $9 to employees. Proceeds—To selling
stockholder.
Underwriter
For public offering! Van
Alstyne, Noel & Co., New York.
*"
—

Home-Stake Production Co., Tulsa, Okla.
5 filed 116,667 shares of common stock (par $5).

Nov.

stock (par 10
cents).
Price—At market.
Proceeds—For investment.
Office —1825 Connecticut Avenue, Washington, D. C.
Investment.
Advisor
Investment
Advisory
Service,
Washington, D. C.
Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.

Price—$6 per share. Proceeds—For working capital and
corporate purposes.
Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.

general

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% per
unit; and series D, $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
Investment Corp. of Florida
(letter of notification) 55,555 shares of common
(par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise
Oct. 9
stock

Boulevard, FL

Lauderdale, Fla. Underwriter—None.
Investors

Funding Corp. of New York
Feb. 17 filed $500,000 of 10% subordinated debentures
due July 31, 1964, to be offered in units of $1,000. Price
—At 100% of principal amount. Proceeds—For invest¬
ment. Office—511 Fifth Ave., New York, N. Y. Under¬
writer—None.
•

if Guaranty Investment & Mortgage Corp.
March 9 (letter of notification) $50,000 of 8% promis¬
sory

notes due six months after the date thereof

demand

in two years without demand.

Price—At

(in denominations of $100, $250 and $500 each).
.

ceeds

—

For

all

types

mortgage

notes.

Kennedy Street. N. W., Washington, D. C.

upon

Office

par

Pro—

819

Underwriter

—None.

Gulf Power Co.
March

(4/2)

if Harvestaire, Inc.,
March

notification) not to exceed 4,006
(no par) to be offered by com¬
by stockholders. Price—$5 per
share. Proceeds—For working capital. Office—411 Fi¬
nancial Center Building, Oakland 12, Calif. Underwriter
pany

(letter

common

stock

for subscription

—None.

•

Harzfeld's, Inc., Kansas City, Mo. (4/6-10)
March il filed 46,200 shares of common stock (par $4),
of which

7,500 shares

are to be sold for company's ac¬
38,700 shares for selling stockholders. Price—
To be supplied by amendment. Proceeds—For general

count and

corporate purposes.
Kansas

<£-Hawaiian Electric Co., Ltd.

(4/8)

K, due March 15, 1989. Price—To be supplied by amend¬
Proceeds—To repay bank loans and for construc¬
program.
Underwriters—Dillon, Read & Co. Inc.,
New York; and Dean Witter & Co., San Francisco, Calif.
ment.

tion

Heartland Development Corp.
23
(letter of notification) 22,820 shares of non¬
voting convertible preference stock (par $12) to be

Statement

effective March 10.

Bay Mining & Smelting Co., Ltd. (4/1)
75,000 shares of capital stock (no par).
Price—To be related to market price on the New York
Stock Exchange. Proceeds—To selling stockholder. Un¬
derwriter—White, Weld & Co., New York.
6

filed

—

quette Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

—

Min¬

Indiana Steel Products Co.
filed

42,193 shares of common stock (par $1)
subscription by common stockholders
at the rate of one share for each seven shares held on
to

be offered for

or about March
18, 1959; rights to expire on or about
April 2. Price—To be supplied by amendment. Proceeds
—For construction, machinery and equipment, and to
provide additional funds for working capital and other
corporate purposes. Office—405 Elm St., Valparaiso, Ind.
Underwriterr-Kalman & Co., Inc., St. Paul, Minn. Offer¬
ing—Expected today (March 19).

Industrial Minerals Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par
cent). Price—$1 per share. Proceeds—To develop
operate graphite and mica properties in Alabama.
ferwriters—Dearborn & Co. and Carr-Rigdom &
both of

one

and
UnCo.,

Washington, D. C., on a best efforts basis. State¬

ment effective Nov. 18.

Inter-Mountain Telephone Co.

expire

ment.

April 10.

Proceeds—For

Price—To be supplied by amend¬
reduction

Underwriter—Courts

short-term

notes to

Co., Atlanta, Ga. and
York, for 219,341 shares; balance to be offered to
two principal stockholders—Southern Bell Telephone &
Telegraph Co. and Chesapeake & Potomac Telephone
Co. of Virginia.

banks.
New

Fund, Inc.

(3/24)

guna

Proceeds—For

investment.

Price—$12

Office—922

La-

St., Santa Barbara, Calif. Investment Advisor—In¬
Co., Santa Barbara, Calif. Underwriter

vestors Research

—Bache &

Co., New York.

• Investors Syndicate of America, Inc.
March 16 filed (by amendment) $161,000,000 installment
face amount certificates.
Office—Minneapolis, Minn.
•

Itek Corp.

Feb.

12 filed 178,842 shares of common stock (par $1),
a total of 164,842 shares are being offered for

of which

subscription by stockholders at the rate of one new share
each four shares held on March 10, 1959; rights to
expire on March 20. The remaining 14,000 shares are
being offered to eligible employees. Price — $30 per
share. Proceeds—To be used for acquisition of Photo¬
stat
Corp.; to purchase additional laboratory, pro¬
duction and other equipment; towards construction of
a new building on a plant site in
Lexington, Mass.; and
the balance for general corporate purposes. Underwriter
—Paine, Webber, Jackson & Curtis, Boston and New

for

York.

Inc.

Nov. 28

(letter of notification) 200,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional spaco
for test laboratories; and for working capital. Office—.
4 Manhasset Ave., Port
Washington, L. I., N. Y. Under¬
writer
B. Fennekohl & Co., 205 East 85th St., New
York, N. Y.

stock

—

if Kratter Corp., New York
March 16 filed 2,719,950 shares of class A stock and
300,000 shares of class B stock, of which a maximum of
2,457,450 shares of class A stock are to be offered in ex¬
change for units in certain limited partnerships. Com¬
pany sold on March 14 a total of 250,000 class A shares
at $10 per share, and on March 4 a total of 300,000 class
B shares at

$1 per share to certain persons. Office—521
Avenue, New York, N. Y. Underwriter—None.
if Kwik Manufacturing Co.
March 11 (letter of notification) 125 shares of common
stock (par $100). Price—$500 per share. Proceeds—For
working capital.
Office — 700 Fifth Avenue, South,.
Seattle, Wash. Underwriter—None.
Fifth

Laure

Exploration 3o., Inc., Arnett, Okla.
400,000 shares of common stock. Price—$2
share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.
Dec. 23 filed
per

Lefcourt Realty

Corp.

Jan. 29 filed 3,492,000 shares

stock, of which
exchange for all of
the common stock of Desser & Garfield, Inc., and D. G.
& R., Inc.; 750,000 shares will be used for the exercise
of an option by the company to purchase from Big
Mound Trail Corp. some 3,784.9 acres of land on or
before May 1, 1959; and the remaining 120,000 shares are
shares

were

common

issued

selling stockholder. Un¬

derwriter—None.

(J. J.) & Ives Co. (4/13-17)
shares of common stock (par 50
Price—To be supplied by amendment. Proceeds
—For additional working capital to be used principally
in producing The American Oxford Encyclopedia. Un¬
if Little

March 18 filed 250,000

cents).

derwriter—Shields &

Co., New York.

Lock Joint Pipe Co. (4/1)
March 3 filed 166,716 shares of common stock

(par 33^
cents), of which, 136,716 shares are to be sold for the
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital and gen¬
eral corpqrate- purposes. Underwriter—Kidder, Peabody
&

Co., New York.

Lorain

Telephone Co.
Feb. 11 (letter of notification) 1,562 shares of common
stock (no par) to be offered for subscription by stock¬
holders on a pro rata basis at the rate of one new share
for approximately each 75.1120 shares held at the close
of business on Feb. 2, 1959. Price—$32 per share. Pro¬
ceeds

Ninth

—

reimburse the treasury.

St., Lorain, Ohio.

Office

—

203 W,

Underwriter—None.

Louisiana Power & Light Co.

(3/27)

filed

399,000 shares of voting common stock,
which
is to be offered for subscription by common
stockholders of record March 20, 1959, on the basis of
two new shares for each five shares then held; rights
5

Research

to be sold for the account of

Imperial Growth Fund, Inc.
March 2 filed 600,000 shares of common stock. Price—At
market.
Proceeds
For investment.
Office — 60 Mar¬

Feb.

share.

per

2,622,000

Hudson

March

March 16 filed $10,000,000 of first mortgage bonds, series

Oct.

19 filed

derwriter—None.

Underwriter—Stern Brothers & Co.,

City, Mo.

Home

Telephone & Telegraph Co. of Virginia
92,1.60 shares of capital stock being offered
for subscription by stockholders of record Feb. 27, 1959,
on the basis of one new share for each four shares
held;
rights to expire on April 3.
Price—At par ($5 per
share). Proceeds—To repay short-term bank loans. Un¬

filed

$7,000,000 of first mortgage bonds due
April 1, 1989. Proceeds—To repay short-term bank loans
and for construction program. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith; Salomon Bros. & Hutzler, and Drexel & Co.
(jointly); Eastman Dillon, Union Securities & Co.;
Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Bids—
To be received up to 11 a.m. (EST) on April 2 at South.ern Services, Inc.,./Room 1600, 250 Park Avenue, New
/
York 17,-N.^.
,
; ;
/
*

"shares of

•

Investors

Jan. 9 filed 490,940 shares of common stock.

—

Feb.

International

Itemco

Hinsdale

Dec. 29 filed

330 Ninth Avenue, West, Calgary, Canada.

i ;
Growth Fund of America, Inc.
Feb. 4 filed 250,000 shares of common

•

Dec. 29 filed

Underwriter—None.

Price—The

Gridoil

one

000

Greater All

for

(4/1-2)

Graham-Paige Corp.
March

offered

(1333)

(4/14)
cumulative preferred stock
(par $100). Proceeds—For property improvements and
other corporate purposes.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; White, Weld & Co., Blyth & Co^
Inc. and Shields & Co. (jointly); Merrill Lynch, Pierce^
Fenner & Smith, Kidder, Peabody & Co. and Harriman
Ripley & Co., Inc. (jointly); Salomon Bros. & Hutzler,
Eastman Dillon, Union Securities & Co. and Equitable
March 3 filed 75,000 shares of

Continued

page

42t

The Commercial and Financial Chronicle

(1334)

(jointly); The First Boston Corp. and

2033, Two Rector St., New York,

to be
Room

N. Y.

(letter of notification) 300,000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—For

March 6

mining expenses.
Office —1342
Vegas, Nev. Underwriter—None.

Melville

Drive,

Las

share. Proceeds

—

Price—$1
For the acquisition of properties

principal amount of de¬

Pacific Power'& Light

For each outstanding warrant of Na¬
Telefilm, the holder will receive an exchange war¬

National Telefilm.

Jan. 27 filed 207;852 shares

Offices—Wilmington, Del., and Emporium, Pa

Underwriter—None.

^ Lumbermen's Investment Corp. of Texas
Maich 5 (letter of notification) 5,000 shares of common
stock (par $10). Price—$13.12 per share. Proceeds—For
working capital. Office — 518 Scarborough Podding,
Austin, Texas. Underwriter—None.
Magic Mountain, Inc., Golden, Colo.
2,250,000 shares of common stock. Price—
$1.50 per share. Proceeds—For construction and working
capital. Underwriter — Allen Investment Co., Boulder,
Jan. 27 filed

$37:50 per shard.
Underwriter —
Ladenburg,.Thalmann & Co., New York.
^
/•
■

rights to expire on March 25. Price
Proceeds

•'

•

on a

best-efforts basis.
Inc. (3/30-4/3)

shares of common stock (par $1).
supplied by amendment. Proceeds—For
capital expenditures and working capital . Office—16d0
Broadway Northeast, Minneapolis, Minn. Underwriter—
Loewi & Co., Inc., Milwaukee, Wis.
be

it Mergenthaler Linotype Co., Brooklyn, N. Y. (4/7)
17 filed 116,541 shares of capital stock, to be
subscription by stockholders at the rate of
one new share for each four shares held of record April
6, 1959. An additional 29,000 shares are bein| or will
be offered pursuant to the company's Employee Stock
Option Plan. Price—To be supplied by amendment.
jProceeds—To be added to the general funds of the
company and be used for corporate purposes.
Under¬
March

offered for

writer—None.

Miami Window

Feb. 25

Fund, Inc.
;
; ^
> t )
of capital stock. Price—Min*purchase of shares is $2,500. Proceeds—For invest¬
ment. Office—404 North Roxbury Drive, Beverly Hills
0«r " Underwriter—Paramount Mutual Fund Manage¬
mum

Proceeds—Together with other funds, to pay outstand¬
Underwriters—Dillon, Read & Co. Inc.
and. Halsey, Stuart & Co. Inc., both of New York.

ment. Co.

of 6%%

(3/25)
debentures due 1974

(with stock purchase warrants attached), and

150,000

shares of 70-cent convertible preferred stock (par $8).
Price-—Of debentures, at par; and of preferred stock $10
per

share.

Proceeds-—To

pay

general corporate purposes.
Podesta

Co., Chicago* 111.;
Corp., Boston, Mass. v: /

and

Clayton Securities

4
Mid-America Minerals,- Inc.
1
Jan. 19 filed 100 units of participations in Oil and Gas
Fund (the "1959 Fund"). Price—$15,000 per unit. Pro¬

ceeds

For

working capital, etc. Office — 500 MidAmerica Bank Bldg., Oklahoma City, Okla. UnderwriterMidamco, Inc., a wholly-owned subsidiary, Oklahoma
City, Okla. />/.■•''/
>/'
V'/'J
• Midwest Technical Development Corp.,
—

Nedow Oil Tool Co.

poses.

share.

Proceeds—For general corporate pur¬
Office—-Minneapolis, Minn. Underwriter—None.

per

common stock. Price—$1
Proceeds —For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

per share.

MonongOhela Power Co. (3/31)
r
$16,000,000 of first mortgage bonds due
April 1,1984. Proceeds—For construction program. Un¬
derwriter
To be determined by competitive
bidding.
Probable 'bidders*
Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Harriman
Ripley & Co., Inc.; Equit¬
able Securities Corp.; W. C.
Langley & Co. and The
First Boston Corp. (jointly); Merrill
Lynch, Pierce, FenFeb. 24 filed

—

ner,& Smith; Kidder, Peabody & Co.
Co.

(jointly).

and White, Weld

Bids—Expected to be received

11 a.m. (EST) on March 31 at West
Penn Electric Co.'s
office, 50 Broad St., New York, N. Y.
•

Montana Power Co.
(3/24)
July 1 filed $20,000,000 (amended later to $15,000,000) of
first mortgage bonds due 1989.
Proceeds—Together with
other funds, to "be used to
repay $15,500,000 in bank
loans

and to carry on the
company's construction pro¬

through 1959. Underwriter—To be determined bv
competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Lehman
Bros,; Merrill Lynch, Pierce, Fenner
& Smittvand Stone & Webster
Securities Corp. (jointly);
White, Weld & Co.; Eastman Dillon, Union Securities &
Co-! Kidder Peabody & Co., Smith, \Barney & Co. and
gram

Blythj& Co., Inc. (jointly). Bids—Expected

ceived, up to noon (EST) on March
Two Rector St., New
York, N. Y.

Montana

to be

Room

re¬

2033,

Power Co.

July 1 filed 100,000 shares of

common stock (no par).
be offered only to bona fide residents
of Montana. Price—To be related
to the current market
price on the New York Stock
Exchange. Proceeds- —To¬

Thestock

will

gether with other funds, to carry on the
company's con¬
struction program
through 1959. Manager-Dealer* —
Smith, Barney & Co., Kidder, Peabody & Co. and Blvtb
& Co., Inc.
Offering—Indefinitely postponed.
• National Investors Corp. (N. Y.)
March 12 filed (by
amendment) an additional 3,000,000
shares of capital stock. Price—At market.
Proceeds—
For investment.
•

National

Theatres, Inc.

;iDec, 30 filed $20,000,000 5%% sinking fund subordinated
debentures due March 1,
1974, stock purchase warrants

supplied by amendment. To be offered from time

prevailing at time of sale

or by public or private sale
prices. Proceeds — To Merritt - Chapman &,
Corp., the selling stockholder. Underwriter—None.

at related

ic Norton Manufacturing Co., Inc.
(letter of notification) 5,000 shares of

common

stock and 5,000 shares of

7% preferred stock. Price—
($10 per share). Proceeds—For equipping and
stocking of its plant and for general operating purposes.
Address—P. O. Box 214, Danville, Va.
Underwriter—•"
At

par

None.'

■/•■",-.,

•

(3/25)

1989.

(3/30)

•

; J/

of New.York,V

Securities & Co. and Salomon Bros. & Hutzler (jointly);
Ripley & Co. Inc., and Stone & Webster Secu¬
rities Corp. (jointly); Blyth & Co., Inc. Bids—Expected •

Harriman

Church

to 11 a.m. (EST) on March 30, at
American Electric Power Service Corp., 30
up

Mines, Ltd.
•
V" :'
(letter of notification) 290,000 shares of common
stock (par $1). Price—$1 per share. Proceedsr—To prdve
up ore and for road and camp construction. Office—At
Suite 322, 200 Bay St, TorOnto, Ont., Canada, and c/q T.

Arnold,

Wilson Circle, Rumson, N. J. Underwriter—
Co.,' New York, N. Y.
j:".
,
/
Rassco Finahcial Corp.
! ^
June 26 filed $1,000,000 of 15-year 6% series A sinking

Sano &

fund debentures due 1973, to be offered in denomination!
of $500 and $1,000.

Price—-At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite!
—Rassco Israel Corp:, New York, on a "best effort#'

basis.

u
"• / /
T 'h'l
Investing/Fund of America, Inc.
filed 200,000 shares of capital stock. Price—lAt
Proceeds—For investment
Office—:Englewood,
;

Research
Feb. 24
market.
N. J.

Underwriter^—First Mutual.Securities of

Inc-'

(by amendment) an additional 5,000,000
capital stock. Price—At market. Proceeds—

For investment.

Oppenheimer Fund, Inc.
Dec.

Raindor Gold

5 filed

market

(letter.'bf Notification) 200,000 shares of comipon
(par one cent) of which 170,000 shares are tor be
by the company and 30,000 shares by a sellihg

Jan. 28

Welders, Inc.
60,600 shares of common stock, $43,333.33'
of-3%% debentures maturing on or before May 6, 1965
$692,000 of 6% debentures maturing on or before Dec
31, 1974 and $123,000 of 7% debentures due on or before.
May 6, 1965 The company proposes to make a public
offering of 25,000 shares of common stock at $10 pei
share. The remaining shares and the debentures are
subject to an exchange offer between this corporatioi
(X K. Rubber, Inc., and O. K. Ko-op Rubber Welding"
System, on an alternative basis. Proceeds—Of the public
offering, will be used for additional working capita1
and/or to service part of the company's debt. Office—
551 Rio Grande Ave.,
Littleton, Colo. Underwriter—

100,000 shares of capital stock. Priee—A»
per share).
Proceeds—For invest¬

(about $10

-'•

~;i

*— $1.50 per
share; Proceeds — For
expahsion - and working capital.
Office—1108
16th Street, N.W., Washington 6, D. C. UnderwriterJohn C. Kahn Co., Washington, D. C.
;

15 filed

March 11 filed

general

O. K. Rubber

it Onf William Street Fund, Inc. (N. Y.)

Jan. 15

stock

stockholder.^ Price

St., New York 8, N. Y.

None.

'-.v.t\ '

Prudential Enterprises, Inc.

sold

Oil, Gas & Minerals, Inc.
Nov. 16 (letter of notification) 116,000 shares of commoi
stock (par 35 cents).
Price—$1 per shale. ProceedsFor development of oil and gas properties.
Office—ol?
International Trade Mart, New Orleans 12, La.
Under
writer—Assets Investment Co., Inc., New Orleans, La.
Dec.

stock, 1959 series ($i00 par)" with attached warrants en¬
titling tlie holders to purchase an aggregate of 168JOOO
shares of common ^focki This includes 2,000 preferred
shares to be Offered to company employees. Price—^To
be supplied by amendment/ Proceeds—For construction
program and other --corporate purposes, including re¬
payment of $1,000,000 of bank borrowings. Underwriters
—Allen & Co.,•*Lehman Brothers, Bear Stearns & Co.,
E. F. Hutton & Co., iand Salomon Bros. & Hutzler, all

Underwriter—To be determined by com-,
petitive bidding. Probable bidders: Halsey, Stuart & Co
Inc.; Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Smith Inc. (jointly); Eastman Dillon
(Union

office

it Philrtps-Fosicue C6rp., High Point, N. C.
9''"(letter;6f notification). 60,000 shares of cc
stock' (par 33 V3 ,cerrts); Price—$5 per share. Pro¬
ceeds
For v,plaiit expenditures and working - capital.

$25,000,000 of first mortgage bonds due

received

Ont., Canada/ /Underwriter—None.

Public Service'Go. of New Mexico (3/30) /
March 6 filed o6,000 shares, of cumulative preferred

Proceeds—To repay bank loans and for construc¬

stockholders' on

rata b^sis..

Rights expire in 15 days. Price—At-par
($10 per share). Proceeds—For accounts receivable and
inventories.
Off ice—332 Atando Ave., Charlotte, NZ;C.
Underwriter-^NOnd.';* ?
n:;^v.,v7 :>•;
it Peruvian'Oils '& Minerals,'Ltd.
March 12 filed 400,,000
sharesyof capital stock. Price—
At the prevailing ihafket. - Proceeds—To selling stock¬
holders.
O^ice*—85 Richmond Street West, Toronto,
pro

—

March 25.

(letter of ho.tification ) 28,250 shares of common

Underwriter^NOne.i^

tion program.

Perfecting Service Co, ■'

mon

(jointly); The First Boston Corp. Bids

Ohio Power Co.

1959 extended to June 16, 1959 period within
financing:
■ i
' ! -1

companyv* may consummate

March

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; Glore, Forgan
& Co., White, Weld & Co., and Eastman Dillon, Union

Feb. 24 filed

Feb. 25,

Which

1989. Proceeds—For property additions or improvements
new construction.
Underwriter — To be deter¬

Securities & Co.

stock to be Offered for subscription by

$30,000,000 of first mortgage bonds due

—Expected to be received

Under¬

bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuari
& Co. Inc.; Kidder, Peabody & Co.; White Weld & Co.,
Equitable Securities1 Corp,, and Shields & Co. (jointly);
Lehman Brothers, Eastman Dillon, Union Securities ' A
Co., Salomon1 Bros. &/Hutzler and Ladenburg; Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Deaii Witter 8c Co. (jointly). Bids — Tentativelj
had been expected to be received up to 11 a.m. (EDT)
on Aug. 27 but company: on Aug. 22 decided to ddfe*
sale pending 'improvement ;in market conditions.
SEC

Feb. 26

Oak Ridge, Inc. Sept. 4 (letter of notification) 100,000 shares of common
stpek (par $1). Price — $3 per share, "Proceeds— Foi:
working capital., Office—11 Flamingo. Plaza, Hialeah,
Fla. Underwriter —Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla. '
Ohio Edison Co.

investment.

Nye-Mathews Mining, Inc.
March 10 (letter of notification) 10,000 shares of com¬
mon stock (no par).
Price—$10 per share. Proceeds—.
For mining expenses.
Office—Merchants Bank Build¬
ing, Indianapolis, Ind. Underwriter—None.
V'

Feb. 26 filed

Proceeds^—For

market.

gage

to time either on the New York Stock Exchange at price

Scott

Pasadena, Calif.
(par $1)

19 filed 20,600 shares of common stock

Pennsylvania/Power Co.r *
- ■•*.'11': •''
::
' ! i'
Aug. 1 filed $8,000,000 of first mortgage bonds due 108$.
Proceeds^To redeem a like amount of 5% first mort¬

New York Shipbuilding Corp.
To be

Peckman Plan Fund, Inc.,

writer—Investors Investments Corp., Pasadena, Calif; ^

and

Millsap Oil & Gas Co.
Dec, 23 fUed 602,786 shares of

(4/1)

Price—At

March 3 filed 621,353 shares of common stock. Price—

March 17 .filed 400,000 shares of common stock. Price—

$3.75

rauerson

May

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—Tc
pay loan; to acquire fishing tools for leasing; and foi^
working capital. Office—931 San Jacinto Bldg., Houston.
Tex. Underwriter—T. J. Campbell Investment Co., Inc.
Houston, Tex.
///i/'/,/:// :
y:'

accounts payable and for

Underwriters—Cruttenden,

>///-•/■''. --'L';'v.J/'v//. /;"■ ,•/. ■/V; Viv.^3»q

(M. F.) Dental Supply Co. of Delaware
:/'/^
March 9 filed 200,000 shares of common stock (no pan).
Price—To be supplied-by amendment. Proceeds—To¬
gether with other funds to repay bank loan.
Office—
2531 University » Ave., - St. Paul, Minn.
UnderwriterStone & Webster Securities Corp., New York.
fr?/1
•

Nayior Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu-,
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬
fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Underwriter—Waldron & Co., San Francisco 4, Calif. ;

March 9

Corp., Hialeah, Fla.

filed $3,500,000

—

construction program.

March 9 filed 50,000

;

For

Jan. 2 filed 300,000 shares

ing bank loans.

McQuay,

Price—To

—

Paramount Mutual

it Natural Gas Pipeline Co. of America :
March 18 filed $20,000,000 of first mortgage pipeline
bonds due 1979. Price—To be supplied by amendment.

Colo.,

Co.
\
■ /
of common stock (par $6.50)

being offered to cdriimon stockholders of record March 3,
1959 at the rate of one new share for each 20 .shares held;

purchase of $11 of debentures and a warrant
purchase of one-quarter share of National The¬
atres common. The offer expires April 6, 1959. DealerManagers—Cruttenden, Podesta & Co., Cantor, Fitzgerald
Co., Inc., and Westheimer & Co.

'ijfe

;

Co.

—

purchase warrant for one-quarter share of
National Theatres stock in exchange for each share oi

Hawaiian Products

Pacific

March 9 filed 213,000

bentures and a

tional

Underwriter^

(3/30-4/3)
shares of common stock (par $1).
Price
To be supplied by amendment (expected at
around $10.50 per ' snare). Proceeds—To selling stock¬
holders:
Underwriters — Dempsey-Tegeler & Co., St.
Louis, Mo.; and -Morgaii & Co., Los Anseles, Calif.
•

for the

under option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.

Office—25 Broad St., New York.

ment.

rant for the

Mining Corp.

Sept. 29 filed 350,000 shares of common stock.
per

Thursday, March 19, 1959

Oppenheimer & Co., New York.

454,545 shares of common stock (par $1) and 485,550
to purchase debentures and stock purchase
warrants. The debentures and stock purchase warrants
are being offered in exchange for National Telefilm As¬
sociates, Inc. common stock and outstanding stock pur¬
chase warrants. Basis of Exchange—Shareholders of Na¬
tional Telefilm will receive $11

it Lucy Gray Gold Mining Co.

LuHoc

warrants

Glore, Forgan & Co. (jointly). Bids — Expected
received up to 11:30 a.m. (EST) on April 14 in

mon

for

Continued pom page 41 \
Securities Corp.

Richwetl

Petroleum

America,
:rA

Ltd.,, Alberta, Canada
June 26 filed 1,998,716 shares of common stock (par $1)
Of this stock, 1;174,716 shares ate to be sold on behalf ol
the company and 824,000 shares for the account of cer¬
tain'selling stockholders. The company proposes to- offer
the 1,174,716 shares for subscription by its shareholder!
at the rate of

one

new

share for each three shares held

Volume
*!

189

Number

5830

The

(with

Commercial and Financial Chronicle

oversubscription privilege). The subscriptioi
be for 30 days following issuance of sub
scription rights. Price—To be supplied by amendmenProceeds—To pay off demand note, to pay other ;indebi

and

edness, and the balance if

Process

period

will

capital.

Underwriter

a c

i f.i

Securities Ltd.,

Van

(4/1)

.March

shares of 6% cumulative con¬
preferred stock (par $50). Price—To be sup¬
by' amendment. -; Proceeds—To be added to the

„■

temporary notes payable -to. banks..;^Underwriter—
Stroud & Co.. Inc., Philadelphia, Pa.
'•

.Ritter Finance Co.

1 > "•••//" *

;

• -

5 filed 25,000 shares of class B t common stock
(par $1). Price—To be supplied by amendment; Pro¬
ceeds—To selling stockholders; Underwriter—Stroud &

Proceeds

Business

/
•»

;rr.

;
;

Price—$i
For investments and working

■—

Real estate investments.;

—

Underwriter—None.

Office

•.-.-nv

filed 250,000

holders at the rate of

shares of

common

10,000,000

market.

Proceeds—For

of
in¬

Instruments, Inc., Dallas, Texas

($25 par—convertible on or prior to May 1,
1969 )v to be offered in exchange for common stock of
Metals & Controls Corp. on the basis of three-quarters of
a share of Texas common stock for each Metals & Controls

share, or, if the holder elects, for eightpreferred share and four-tenths of a common
share. Underwriter—None. Statement effective March 4.
common

tenths of

Power Corp.

stock¬

held

of record Feb. 27; rights to .expire on March 23.
Price—$2.50 per share. Proceeds—For additional work¬
ing capital. Office—South St. Paul, Minn. Underwriter
,-f-None. Statement effective Feb. 27.

•

Thorncliffe

Vhhout

„Price—$200

unit for each 25 shares of stock held

one

March 30,
per

Underwriter—Allen & Co.,

New York..

lAr Seaford-Mar Marina, Inc.
;March 5 (letter of notification)
stock

<mon

•

163,858 shares of comto be offered for subscription

(par 10 cents)

by stockholders

;

• Traffic Club of New York, Inc.
March 9 (letter of notification) $250,000 of 6% registered
notes due May 1,
1969, to be offered to resident mem¬
bers of the club only. Price—$100 per note. Proceeds—
To be used for alterations and improvements of the
club's new
quarters in the Grand Central Terminal
Building, New York, N. Y., and for general corporate
purposes.
Office—Hotel Biltmore, 43rd St. and Madison
Ave., New York 17, N. Y. Underwriter—None.

1959; rights to expire, about. April 15.
unit. Proceeds—To repay bank loans.

the basis of

one

share for each

new

,,10. held; rights to expire on March 30. ■ Price—75 cents
per share. Proceeds—To liquidate debts; to secure mort¬
gage or other form of loan financing and for a con¬

struction

program.. Office—Foot of South Seaman Neck

Road, Seaford, N. Y. Underwriter—None.

jSept. 26 (letter, of notification) 3,567/shares of
stock

(par $1). Price—$18.75 per share
go to a selling stockholder. Office—400 W
Fort

Worth, Tex

/..

Shares in American

°resident.

„••

Glass & Chemical Corp.
708,750 outstanding shares of common stock
Price—At market. Proceeds
To felling stockholders
Office—Tiffin, Ohio. Underwriter—None.
T v

Nov. 26 filed

■

Office

—

Price—A

1033-30tl

United

St:, N. W., Washington 7, D. C. Investment Advisor—In
vestment

Fund

Management

Shares in America, 3nq. \

Soetidan-Befmont

Hotel

Corp. Former
Name*'
V »
>.'3 ;W:>'

•

/Sire
Vox-

Plan of

Price—To

fiipH

ono, of

one

Price—$100 per unit. Proceeds—Foi
acquisition of motels. Underwriter—Sire Plan Portfolios
;
:

14,052

for

other

cent)

Inc.

common

Price—At the market

$6 per share).
—33

(Delaware)

461,950 shares of

•

;

Invested

stocks

and

(par one
event less than

(letter of notification)

stock.

Price—At par (10 cents per share).

Co., Inc., Rochester, N. Y.

Kansas

its

reduce its

construction

Boston

short-term bank

program.

borrowings, and

Underwriters—The

First

Corp. and White, Weld & Co., both of New York*
:

March 5 filed

100,000 shares of common stock (par $10)
40,000 shares of preferred stock (par $25). Price—

and

Proceeds—For construction

par.

company's

plant

Montgomery

and

St.,

and equipment of
working capital. Office—300
Francisco, Calif. Underwriter—

for

San

None.

^Whitehall Fund, Inc.
12

(N. Y.)
(by amendment) an additional 250,000
Price — At market. Proceeds

filed

shares of capital stock.
For investment.

—

Wilmington Country Club, Wilmington, Del.
Oct. 27 filed $500,000 of debentures due

1991 (non in¬
bearing) and 800 shares of common stock (par
to be offered to members of this club and of
Concord Ltd. Price—$375 per common share and
terest

$25)

$1,000

debenture.

per

build

Proceeds

certain facilities.

To develop property
Underwriter—None.
—

and

Wisconsin Power & Light Co.
March 9 filed $14,000,000 of first

(4/15)
mortgage bo^ds, series
J, due March 1, 1989. Proceeds—To pay part of the cost
of property additions and
improvements. Underwriter—
To be
determined
by competitive bidding. Probable
bidders: Halsey, Stuart & ,Co. Inc.;
Smith, Barney & Co.
and Robert W. Baird

& Co. (jointly); Equitable Securi¬
Corp. and Eastman Dillon, Union Securities & Co.
(jointly); White, Weld & Co., Kidder, Peabody & Co.
and Salomon Bros. & Hutzler
(jointly); The First Boston
Corp.; Blyth & Co., Inc. and Lehman Brothers (jointly).
Bids—Expected to be received up to 11:30 a.m. (EST) on
April 15.
/•
''
•:
-•

ties

Wyoming Corp.

Of these

completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered
initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new

share for each 2.33 shares held

on that date.
Price—-$4
Proceeds—$300,000 Will be used for payments
on contract to purchase shares of
International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for
capitalization of a title insur¬

per

share.

ance

company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and
$300,000 as
additional capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo. Under¬
writer—None.

Prospective Offerings
Alabama Power Co.

Dec.

(4/30)

that the company plans the
$20,000,000 of 30-year first mortgage
For construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬
ers; Eastman Dillon, Union Securities & Co., Equitable
Securities Corp. and Drexel & Co. (jointly); Harriman
Ripley & Co., Inc. and Goldman, Sachs & Co. (jointly);
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston Corp. Regis¬
tration—Planned for April 3. Bids—Expected to be re¬
ceived on April 30.
was

Issue and

bonds.

•

sale

announced

Proceeds

—

Consolidated Edison

Co. of N. Y. Inc. (5/26)
was reported that the company plans to issue
$50,000,000 to $60,000,000 of first refunding mort¬

March 9 it
and sell
gage

bonds. Proceeds—For additions, improvements, etc.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley & Co.; The First Boston Corp. Bids—Expected
11 a.m. (EDT) on May 26.

to be received up to

•Ar Consolidated Natural Gas Co.
March

holders

(5/21)

the directors approved a plan to offer stock¬
or about
May 21 the right to subscribe for

821,256 additional shares of capital stock
of

one

below

new

the

offering.

share for each 10 shares held.

market

on the basis
Price—To be

price prevailing at the time of the
construction program. Under¬

Proceeds—For

writer—None.

ic Consolidated Natural Gas Co.
18, James Comerford, President, announced that,
stock offering to stockholders,
the company plans this year to issue and selL publicly
$20,000,000 of debentures.
Proceeds—For construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co. and The First Boston Corp.
(jointly); White, Weld & Co. and Paine, Webber, Jack¬
son & Curtis
(jointly).
March

Victoreen Instrument Co.,
March 4 filed 248,394 shares of

Strategic Minerals Corp. of America, Dallas, T«>
$2,000,000 of first lien mortgage 6% bondi

share).

Proceeds—For exploration
Underwriter—To be named by amendment
Albert Griswold of Portland, Ore., is Pretper

900,000 shares of com¬
Proceed!
—For mining expenses. Office—305 Main St., Park City
Utah.
Underwriter—Walter Sondrup & Co., Salt Lak#
City. Utah.

stock

offered

and

for

each four

$100

subscription

capital stock (par $1)
by holders of common

at the rate of new share for
shares held and eight shares for each

debentures,

bonds

March 31 filed

Corp., Littleton, Colo.

Utah Oil Co. of New York, Inc.
May 6 (letter of notification) 300,000 shares of capital
; stock
Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt

■

and to acquire other life
insurance companies: Address—P. Q. Box 678, Gulfbort
Miss
Underwriter—Gates. Carter & Co., Gulfport, Miss
.

stock

Life, Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of commoi)
stock
(par $1).
Price—$5 per share. Proceeds—To bf

April 11

mon

State

be used
for

Con¬

Utah Minerals Co.

(but in no
Proceeds—To selling stockholders. Office
Underwriter—
-•

Estes Hotel and

ldent

Great Neck Rd., Great Neck, N. Y

None

to be $1

purposes.

eight at Yorktown Heights
by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities: and $395,000 for working capital
UnderwriterNone.
;
~
Arenas

Grand

vention Hall, to be constructed in the immediate vicinky
Estes Park Chalet, located in Larimer County, Colo.
Office — 330 South 39th Street, Boulder, Colo. Under¬

Graham

the number of alley beds by

filed

pected

and

Uranium Corp. of America, Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock(pai
16 cents).
Price—To be supplied by amendment (ex¬

installations, fixtures and equipment; $85,000
two present establishments by increasing

•Sports

construction

Underwriters—Kidder, Peabody & Co., Paine,
Webber, Jackson & Curtis, and Stone & Webster Secu¬
rities Corp., all of New York.

expand

Nov.

for

program.

■

Co.,

held; rights to expire on April 21. Employees will
privilege of subscribing for 16,000 shares
up to 3:30 p.m. (EST) on April 16.
Price—To be sup¬
plied by amendment. Proceeds—To be loaned to a sub¬
sidiary, Western Massachusetts Electric Co., which will

Inc.
shares of class A common stock
50' cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"

Arenas
(Delaware)
Inc.
N6v. 18 filed $2,000,000 ,of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969
Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pi'nspotters, Inc. for bowling alley beds; $350,000 to pay

Snider

be offered the

(par

Upper Peninsula Power Co. (3/25)
4 filed 40,000 shares of common stock (par $9).
Price—To be supplied by amendment. Proceeds—For
general corporate purposes, including 1959 construction

common stock (par $1) to be offered.for sub¬
scription by stockholders of record March 16, 1959 on
'the basis of one new share for each 30 shares now held.
Price—$16 per share (estimated). Proceeds—For con¬
struction purposes.
Office—1012 Mercantile National
Bank Building, Dallas, Texas.
Underwriter—None. /

to"

Soto

•

shares of

Sports

(par $1).
Proceeds—To

March

/.../'/• v-'.

Southwestern Electric Service. Co.; r«
March 3 (letter 'of ..notification,) an estimated

Wright,

Jan/28 filed 4,500,000

writer—Mid-West Securities

-of.preferred stock.

Inc., New York,

stock

United Tourist Enterprises,

-r

and

$50 debenture and

(3/23-27)

common

St., Lcs
Underwriter—Van Alstyne, Noel & Co.,
Los Angeles.

New York and

participating preferred stock (par $50)

to-be offered in units of

Corp.

selling
Angeles, Calif.

Underwriter—Non>

10-year debentures and 5,-

Servateria

275,000 shares of

supplied by amendment.
stockholders. Office—2522 South

Elmsford, Inc., New York

000 shares of 6%

States

March 3 filed
-

Cd.'v; **..'•

Aug 19 (letter of notification) $250,000 of 6% convertibn
debentures due Sept.,15, 1963 to be offered for subscrip
by common stockholders on a pro rata basis. PriceA1- par/ Proceeds—For working, capital
Office — 317/

.North'Sheridan Bd., Chicago 14. Ill

States

—

stock

common

Proceeds—For investment.

United

Houp

Industry, Inc.

Dec. 12 filed 50,000 shares of
market.

Viekery Blvd

ton,'Tex.
<

commoi

.Proceeds—T<

Underwriter—Kay & Co.v lnc,

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $&
—
$10 per share. Proceeds — For acquisition o
operating properties, real and/or personal, includini
jffice furniture, fixtures, equipment and office space, b
lease or purchase. /Office — Wilmington, Del.
Undei
.writer—None • Myrl
L
McKee of Portland, Ore..

Price

Service Life Insurance Co.

Prescott,

then

■

! at. the rate of

and

★ Western Massachusetts Companies (4/3)
13 filed 177,626 shares of common stock
(par 50
cents), of which 161,626 shares are to be offered for
subscription by common stockholders of record April 3,
1959, on the basis of one new share for each 15 shares

March

(3/23)

Feb. 20 filed

$4,000,000 (Canadian) of sinking fund de¬
bentures, series A, due March 1, 1974, and 80,000 shares
of common stock, to be offered for sale in
units, each
•
L consisting of $1,000 of debentures and 20 shares of com¬
Scranton-Spring Brook Water Service Co.
(3/30)
■■
Vv.S-'v;//.V... mon stock. Price—To be supplied by amendment. Pro¬
ceeds—For repayment of a loan; to retire all of the com¬
March 3 filed $8,000,000 of sinking fund debentures due
pany's current bank loans; and the balance for working
April 1, 1984 and common stock warrants. to purchase
capital and general corporate purposes. Address—Postal
80,000 shares of common stock to be offered in units of
Station R, Toronto, Ont., Canada. Underwriter—Bache &
$200 of debentures and warrants for the pruchase of two
shares of stock for subscription by common stockholders
Co., New York.
.,

share for each five shares

March

(3/23-27)

Park Ltd.

new

11, 1959; rights to expire on March 24.
Price—$45.50 per share. Proceeds—To increase capital
and surplus.
Underwriters — Kidder, Peabody & Co.,

Western Wood Fiber Co.

27
(letter of notification)
about 40,000 shares
(par $1), not to exceed an ..aggregate value of $300,000
; of common stock.
Price—Around $7.50 per share. Pro¬
ceeds—For expenses for exploration and drilling to in¬
crease
the steam supply.
Office—593 Market St., San
Francisco, Calif. Underwriter — J. Barth & Co., San
Francisco, Calif.

stock' (par 2I/>

common

amendment)

one

March

York;
City, Mo.

-Feb.

—

share for each four shares

new

one

(by

Price—At

being offered for subscription by holders of outstanding

New

III.

Feb. 11 filed 691,851 shares of common stock (par $1)
and 737,974 shares of 4% cumulative preferred stock,

Thermal

•ISt. Paul Ammonia Products, Inc.

cents), being offered for subscription by

stock.

common

Jan. 29 filed 475,000 shares of common stock/

Dec.

Underwriter

ores.

V series 1959

March

Co., Inc., Philadelphia, Pa.
'
v.
s^Routh Robbins Investment Corp.

filed

Texas
.

duce

Alexandria, Va.

manganese

vestment.

general funds of the company and- initially^ used to re¬

share.

beneficiate

Southwest Shares, Inc.. Austin, Texas.

vertible

per

held

Proceeds—To erect and operate one or moa
ch/emical processing plants using the Bruce - William,

ic Television-Electronics Fund, Inc., Chicago,

Ritter Finance Co.
March 5 filed
30,000

^capital;

stock at the rate of

share.

per

couver, Canada.

plied

975,000 shares of common stock (par 10 cents). Prie*
bonds, 95% of princtoal amount; and for stock $

—For

will be added to working

any

—

(1335)

common

of debentures held.

Price

—

amendment.

Proceeds—For

working

be supplied by
capital.
Under¬

writer.—None.
Western Casualty & Surety Co.
Feb.

filed

100,000

capital

stock

(par

$S)

in addition to the proposed

Continued

page

The Commercial and Financial
Chronicle

(1336)

(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly). Offering—Expected during August.

Continued jrom page 43
Co. (4-21)
Feb. 27 it was announced that this company plans to
issue and sell $5,000,000 of 35-year debentures. Proceeds
.—Principally to replace borrowings for new construc¬
tion.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
"The First Boston Corp.; Morgan Stanley & Co.; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.
©nd Kidder, Peabody & Co. (jointly). Bids-—Expected
to be received on or about April 21.
<•

State Telephone

Diamond

Duke Power Co.
March 9 it

Kansas

City Power & Light Co.
Dec. 29 it was reported that the company plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; Wh^te,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or
June.

reported that the company plans to issue

was

Maine

and sell $25,000,000 of new preferred stock. Underwriter
—To be determined by competitive bidding.
Probable

Electric

Co.

determined

by competitive bidding. Probable bidders:
Halsey. Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co.; White, Weld & Co. and Shields & Co.

(jointly) Equitable Securities Corp. and R. W. Pressprich & Co. (jointly). Bids—Expected to be received
up to 11 a.m. (EST) on May 19.
El

Paso

Co.

Electric

(5/19)
Feb. 9 it was reported that the company plans the sale
©f 20,000 shares of preferred stock (par $100).
Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders;
Eastman Dillon, Union Securities & Co.; Salomon
Bros.
& Hutzler & Co.; Kidder, Peabody & Co., and White,
Weld & Co. (jointly); Merrill Lynch, Pierce, Fenner &
Smith.. Bids — Expected to be received up to 11 a.m.

(EST) on May 19.
El

Paso

Feb. 9 it
©n

■C<.

*:f "t

Electric

Co.

the

each 15 shares held

basis

common stock to common
about one new share for

of May 11,

1959; rights to expire
May 26. Proceeds—For construction program. DealerManager—Stone & Webster Securities Corp., New York.
as

Paso

Dec.

Natural

Gas

announced

was

that

this

company

plans to

$5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
ceived

June 25.

Norfolk & Western Ry.
March 2 it was reported that the company plans to re¬
ceive bids sometime in April for the purchase from it
of

$7,350,000 of

bidders:

equipment

trust

certificates.

Probable

Halsey, Stuart & Co. Inc.; Salomon Bros. &

Hutzler.
North American

Equitable Life Assurance Co.

announced that the company

was

plans an of¬
fering of 950,000 shares of capital stock. Price — $10 pei
Proceeds—To increase capital and surplus. Un¬

Co.

For

major expansion program.
White, Weld & Co., New York.

Underwriter

—

Northern
Dec.

j.2

Illinois

Gas

Co.

reported that the company will sell in
$35,000,000 of new securities, including some
first mortgage bonds; in addition, there is a possibility
of a preferred stock issue.
Proceeds—For capital ex¬
penditures. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
was

1959 about

Feb. 4, W. J.

Clapp, President, announced that the cor¬
poration is planning to sell additional shares of common
the basis

held.

Proceeds—For construction

writers—

Pierce,

Kidder,

Fenner

one

share for each

new

expenditures. Under¬
Co. and Merrill Lynch,
Inc.
Offering—Expected in

Peabody

Smith

June.

sidering

the

that

announced

was

offering

and

sale

directors

Antonio

market. Underwriter

and

number

are

con¬

—

Dittmar &

Co., San

Dallas, Tex.

ceeds—For

construction

program.

Underwriter—To

determined by competitive

bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea.
body & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan
Stanley & Co.;
Equitable Securities Corp. and Eastman
Dillon, Union
Securities & Co. (jointly); Harriman
Ripley & Co. Inc.
Registration—Planned for Aug. 14.
Bids—Expected to
be received on Sept. 10.
Interstate Power Co.
2 it was reported that the
company plans to
issue and sell $6,000,000 of first
mortgage bonds. Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.

Salomon Bros. & Hutzler

Smith

Lehman Brothers

received some time in

(jointly); Merrill Lynch,
Inc.; Kidder, Peabody & Co.

(jointly).
May.

Bids—Expected to be

Interstate Power Co.
March 2 it
the

was

issuance

and

reported that the company is
planning
sale of $4,000,000
preferred stock. Un¬

derwriter—Kidder, Peabody
last

equity

termined

financing

& Co., New York, handled

through

competitive

negotiated

bidding,

sale.

probable

de¬

bidders

Co., Inc.

Offering—Expected

(jointly); Smith, Barney & Co.

May.

Jersey Central Power

& Light Co.
was announced that the company is contem¬
plating the sale of $8,000,000 of first
mortgage bonds
Underwriters—To be determined
by competitive bidSling. Probable bidders: Halsey, Stuart & Co. Inc *

(ff*eb. 10 it

White

JFeld & Co.; Kidder, Peabody

& Co.; Salomon Bros. &
Hutzler and Merrill Lynch,
Pierce, Fenner & Smith Inc.

Power

Co.

(5/12)

announced

$5,500,000

sell

that the company

first

plans

mortgage

bonds.

Proceeds—Together with other funds, will be used to
repay temporary bank loans, and to refund the slightly
less than $4,000,000 of series "C" 5
mortgage bonds '
due 1986.
Underwriter—To be determined by competitive

bidding. Probable bidders: Halsey, Stuart & Co. >
Inc., Hornblower & Weeks and William R. Staats & Co.
(jointly); White, Weld & Co.; Merrill Lynch, Pierce,

Fenner

Smith

Inc.
Bids—Expected to be received
(PST) on or about May 12 in the offices of
O'Melveny & Myers, Room 900, 433 South Spring Street,
Los Angeles 13, Calif.
' A5'/'". :• AA'AAA^/A-v-A
4c Southern Nevada Power Co. (4/28)
;

to 9

a.m.

March 17

it was announced that the
company plans early
registration of $1,500,000 of preferred stock. .Proceeds—
To repay temporary bank loans.
Underwriter—May be
Hornblower & Weeks, New York; William R. Staats &'

Co., Los Angeles, Calif.; and First Colifornia Co., San
Francisco, Calif.
Southern

Pacific

Co.

received

Bids will be

(4/1)
to noon (EST)

April 1

165

Broadway, New York, N. Y., for the purcchase from
the company of $7,620,000 of
equipment trust certificates.
Probable bidders: Halsey, Stuart & Co.
Inc.; - Salomon
Bros. & Hutzler.

Electric

Power

Co.

(5/12)

Jan. 26 it was reported that this
company
(formerly
Southwestern Gas & Electric Co.) plans the issuance and
sale of about $16,000,000 of first
mortgage bonds. Under¬

announced that the company is planning
$15,000,000 of first mortgage bonds.
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co., Merrill
Lnych, Pierce, Fenner
& Smith Inc. and White, Weld & Co.
(jointly); The First
Boston Corp. and Harriman
Ripley & Co. Inc. (jointly).
Offering—Expected about mid-year.

sale

Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Smith Inc. and Eastman Dillon, Union
Securities

& Co. (jointly); Equitable Securities
Corp.;
Lehman Brothers; Kuhn, Loeb &
Co.; Blyth & Co. Inc.
Bids—Expected to be received up to 11:30 a.m. (EDT)
on May
12.

Spector Freight System, Inc.
: ■
16 this company
sought ICC approval for issuance
200,000 shares of class A common stock (par $1), of
which 60,000 shares will be sold for the account of sell¬
ing stockholders Proceeds
To pay outstanding loans

Feb.
of

and for additional
Becker

•

working capital. Underwriter—A. G.
Co., Inc., Chicago, 111. Offering—Expected in
' :•< \
:■;
-;.
Av,-; -

&
-

„

Texas

Pacific

Ry. (3/26)
Bids will be received by the
company

(CST)

noon

March 26 at Texas & Pacific
Bldg., Dallas 2, Texas,
for the purchase from it of
$3,000,000 series T equipment
on

trust

certificates

Probable

was

maturing from April 1,

to 1969.

1960

bidders—Halsey, Stuart & Co. Inc.; Salomon

ic Union

Bank,

March

Los Angeles,

Calif.

reported that this bank plans to offer
70,028 additional shares of capital stock (par $10) to its
was

stockholders
one

new

expire

record

for

April 8.

March

each

18,

1959,

Price—$59.50

the basis of
held; rights to
share. Proceeds—
on

then

per

To increase capital and
surplus.

Underwriters—Blyth &
Co., Inc. and Stern, Frank, Meyer & Fox, both of Los
Angeles, Calif.

(4/7)

4c Union Electric Co.

(Mo.)
W. McAfee, President, stated that the
pany plans to sell about $30,000,000 of additional

23 it was reported the
company plans to receive
bids up to noon (EST) on April 7 for the purchase from
it of $2,475,000 of equipment trust certificates. Probable

Feb. 23, J.

bidders:

mon

Halsey,

Stuart &

Co.

Hutzler.
•

Inc.;

Public Service Co. of Colorado

March

Salomon

issue

ijt

was reported that the
sell about $20,000,000 of

Bros.
*

(4/28)

plans to
mortgage 30-

and
first
bonds, due 1989. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.
and Smith Barney & Co. (jointly); Harriman Ripley tr

Inc., Eastman Dillon, Union Securities & Co., Mer¬

rill Lynch, Pierce, Fenner & Smith Inc. and Dean Witter
& Co. (jointly); Lehman Brothers, Kidder, Peabody &
and

White, Weld & Co.

to be received

to 11

a.m.

(jointly). Bids—Expected
(EDT) on April 28.

Public Service Electric & Gas Co.

(6/2)
reported that the company plans sale of
$30,000,000 to $40,000,000 debentures. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn
Jan. 30 it

was

Loeb & Co. and Lehman Brothers
(jointly); Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on June 2.

later

stockholders.
•

United

Puget Sound Power & Light Co.
Feb. 6 it was announced company
plans to issue and sell
$10,000,000 preferred stock this Spring. Proceeds—For
construction program.
Underwriter
May be Merrill
Lynch, Pierce, Fenner & Smith, Inc., New York. May
be placed privately.
—

•

Ryder System, Inc. (3/23-27)
was reported that the
company plans the issu¬
ance and sale of
150,000 shares of common stock (par $5).
Proceeds—For acquisitions. Underwriter—Blyth & Co.,
Inc., New York. Offering—Expected next week.
Jan. 12 it

Southern Electric
Generating Co* (5/28)
was announced that the
company plans to issue

Dec. 10 it

com¬

year.-ithrough rights to common
expansion program.

Proceeds—For

States

Feb. 27 it

National

Bank,

Portland,

Ore.

reported that this bank plans to issue an
23,000 shares of common stock on the basis

was

additional
of

one

new

for

each 49

26, 1959: rights to expire
per

share.

Proceeds—To

shares held

was

March

April 15, 1959. Price—$50
capital and surplus.

increase

Virginia Electric & Power Co.
Feb.
offer

announced

that

the

(6/2)
company

plans

additional 710,000 shares of common stock to
be offered for subscription by stockholders of record on
or about June 2,
1959, on the basis of one new share for
an

each 20 shares then held.

Proceeds

—

For construction

Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Merrill
Lynch, Pierce,
Fenner & Smith, Inc.; Stone & Webster Securities Corp.

program.

Bids—Expected to be received

June 2.

Washington Gas Light Co.
March

reported that the company plans to
$12,000,000 of first mortgage bonds. Under¬

was

issue and sell
•

this

(3/26)

company

year

Co.

stock

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Pea¬

body & Co.; Eastman Dillon, Union Securities & Co.;
Equitable Securities Corp.
Offering—Expected during
the second quarter of 1959.
Worcester Gas Ligftfc Co.

Aug. 18 it

was

-•

AA';'"AAA'A'A!; aA AAA

Southwestern

Bros. & Hutzler.

Pennsylvania Electric Co.

Co.

March

Pierce, Fenner &

Nevada

it was

and

April.

Corp.
fan. 28, Alfons Landa, President, said the company may
offer its stockholders $7,000,000 additional capital stock
through subscription rights. Purpose—To acquire Fair¬
banks, Morse & Co. common stock. Underwriter—Bear,
Stearns & Co., New York.

Feb.

announced that the company

was

©nd

B10,000,000
Corp. and Kuhn, Loeb & Co., both of New York.

Pittsburgh & Lake Erie RR.

Georgia Power Co.. (9/10)
Dec. 10 it

issue

—■

—

(par $2.50); such offer¬
ing, if made will be made in conjunction with a pro¬
posed offering by certain major shareholders. Price—
Belated

Co., Luxemburg

reported that this company plans to offer
of bonds. Underwriters—The First Boston

was

Feb. 10 it

of proposed new common stock

©nd

Dec. 22 it

the

Frito Co.

Feb.

Inc.; The First Boston Corp.; Glore, Forgan & Co.;
& Co., Inc.

Our River Electric

Penn-Texas

Power Corp.

stock

^-Southern
March

writer—To be determined by competitive
bidding. Prob¬

Blyth

was announced stockholders will on April 28
increasing the authorized preferred stock to
1,000,000 shares from 472,229 shares, and the common
ctock to 25,300,000 shares from 20,300,000 shares. Pro¬

Florida

and

able bidders:

vote

—

Co.

share.'

Co.

ceeds

program..

Lynch, Pierce, Fenner & Smith; Kidder, Peabody
White, Weld & Co. (jointly). Registration— ;
Planned for April 17. Bids—Expected to be received on
May 28.
A ■rv
/■■'<■> ■ '■,/

•

Dec. 1 it

construction

determined

Merrill

first

30-year

mortgage bonds.
Underwriter—To '
by competitive bidding.- Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp.
(jointly);;

tration-Planned for May 29. Bids—-Expected to be re¬

March 4 it

issue and sell

$25,000,000

Proceeds—For

(6/25)

sell

Thursday, March 19, 1959

derwriter—John M. Tait & Associates, Cincinnati, Ohio

(5/12)

offering of 76,494 shares of

etockholders

Mississippi Power Co.

reported that the company is also planning

was

(4/24)

tration—Planned for April 1.

(5/19)

Feb. 9 it was reported that the company is planning the
©ale of $3,500,000 of first mortgage bonds due 1989. Pro¬
ceeds—For construction program.
Underwriter—-To be

Co.

was announced that the company plans early
registration of 50,000 shares of additional common stock
(par $7). Proceeds—To reduce outstanding bank loans.
Underwriters—Merrill Lynch, Pierce, Fenner & Smith
Inc. and A. G. Becker & Co., both of New York. Regis¬

Eastman

Paso

Service

March 9 it

Dillon, Union Securities & Co.; The
First Boston Corp.; Morgan Stanley & Co.; Stone &
Webster Securities Corp.
Offering — Expected about
mid-year.
bidders:

Public

and

U;A

reported that the company plans the sale
Proceeds—For con¬

of $5,000,000 first mortgage bonds.
struction program.

Unde^vriter—-To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Inc.; Estabrook & Co. and Coffin & Burr, Inc.
(jointly); Kidder, Peabody & Co. and White, Weld St
Co. (jointly).
'
Co.

Volume

189

Number

5830

The Commercial and Financial Chronicle

(1337)

I he

Indications of Current

Business Activity

week
Latest

AMERICAN

IRON

AND

INSTITUTE:

STEEL

ingots

AMERICAN

castings

and

tons)—

(net

condensate

Gasoline
Kerosene

I bbls.)

output

—

(bbls.

—

(bbls.)

average

(bbls.)_—

output

fuel

oil

*8,207,000

Mar.

7,212,920

Mar.

—,————..

_—

(bbls.)

Residual fuel oil (bbls.)
ASSOCIATION

27,461,000
2,393,000

i—Mar.

AMERICAN

.—

cars)

207,015,000
18,985,000
80,616,000
154,835,000

Mar.

52.5

2,449,000

Slab

7,213,320

CONSTRUCTION

7,488,000

26,913,000
2,903,000

25,294,000

15,267,000

15,009,000

Total

U. S.

Private
....Public
—

7,483,000

6,761,000

construction-

J—~

20,649,000

17,622,000
84,018,000

COAL OUTPUT

$372,100,000
202,200,000

Mar. 12

169,900,000

——r———___Mar. 12

144,800,000
25,100,000

—;

(U. S. BUREAU

:——

Mar. 12

Mar.
;

Mar.

——

INDEX—FEDERAL

AVERAGE

—

(COMMERCIAL

JOO—

575,583

565,397

551,334

Backlog

544,374

steel

Pig iron

(per gross

—Mar. 14

INDUSTRIAL)

AND

METAL

PRICES

J: Electrolytic

(end

.550,281

$523,100,000
230,000,000
293,100,000
181,600,000
111,500,000

$346,236,000

$313,098,000

207,543,000
138,693,000

192,201,000

96,095,000

(New

LeadSt.

153,761,000

tZine

York)

(delivered)

Zinc

(East St.

at.—.

Mar. 12

42,598,000

38,440,000

*8,235,000

8,300,000

425,000

7,715,000
394,000

376,000

8.264,000
417,000

118

•

108'

292

336

6.196c

Group

140,670

359,075
13,442
244,840
100,793

4,007

3,830

1,940

2,621

29,470

27,596

$873,700

*$2,139,000

*$852,700

$1,314,469

$1,641,101

$1,174,791

750,150

685,529

613,080

564,319
427,372

955,572
654,957

561,711

136,947

300,615

137,251

32,840,000

34,820,000

1,557,000

2,194,000

31,450,000
1,782,000

undelivered

$37.33

Mar. 11

31.100c

29.625c

29.600c

401
4

7,219

55,941

30.525c

30.000c

28.225c

20.050c

Mar. 11

11.500c

11.000c

11.500c

11.300c

10.800c

11.300c

11.500c

12.000c.

11.000c

11.500c

24.700c

Mar. 11

103.500c

103.750c

102.000c

95.625c

85.65

85.75

86.31

94.54

,„Mar. 17

90.06

90.20

89.92

94.12

93.97

92.79

92.64

In U.

Mar. 17

90.06

90.34

89.78

84.04

83.91

83.66

86.51

88.81

88.95

91.62

M'ar. 17

;
„

—

89.92

89.37

96.85

Mar. 17

91.77

91.34

■

—

'
—

88.67

Mar. 17

3.89

3.85

3.79

4.41

4.40

4.42

4.13

4.14

4.24

4.22

4.23

Stocks
Cotton

4.41

4.39

Mar'.

4.43

4.06

4.87

4.89

4.67

4.49

_■

4.42

4.46

4.29

4.32

3.86

Mar. 17

—

——

•

388.1

387.6

382.4

399.1

$840,000

$654,000

■,

109,523

end

108,264

137,361

146,978

136,748

114,425

116,310

109,707

80,722

176,287

687,360
1,566,014
12,295,610
100,983
864,365
17,636,000

727,410
1,542,092
*12,748,536

period (tons

DEPARTMENT

—

*105,552

BALES:

Jan.

month

December

3
of

3—1

Jan.

106,667

797,774
*1,729,093

*12,183,000
98,954

857f4tt5

908,997

17,616,000

17,950,000

20,497,000
17,636,000
8,552,000

20,681,000
17,616,000

21,059,000

9,453,000

17,950,000
10,199,000

427.6

378.1

408.0

(DEPT. OF COMMERCE):

ERAL

4.50

—

—i—

Group—
Group—-—

$875,000

DEPARTMENT

4.86
4.51

47,627
3,299,838

January:

spindle hours (000's omitted) Jan. 31
Active spindle hours for spindles in place Jan.

Mar- 17

4,714,610

A.—

Active

4,762,237

5,430,841
76,804
3,814,578

80,780

spindles active

Mar. 17
Mar. 17
.Mar. 17

—

—,—,,————-—.—..

Utilities

Jan.

5,507,645
;

82,055
3,792,362

YORK—

Spinning spindles in place on Jan. 31
Spinning spindles active on Jan. 31

3.78

LINTERS

Linters—Consumed

3.62

—

NEW

(tons of 2,000 pounds)—

In public storage as
of

4.03

—Mar. 17

month

COMMERCE—RUNNING

2.96

—Mar. 17

—:—

—

COTTON SPINNING

——

—

BANK

(000's omitted)

Consumed month of January
In consuming
establishment as of Jan. 3.

DAILY AVERAGES:

98.25

—.

—,
■

(net tons)

tons of 2,000 pounds)-.

COTTON AND

95.16

Mar. 17
Mar. 17

„

of month

—

OUTSTANDING—FED¬

Refined copper stocks
of 2,000 pounds)

99.52

„

•

PAPER

—

Refined

102.13

92.50

;

tons)

stock at end

RESERVE

(

5,613,162
5,531,107

—

(net

(tons of 2,000 pounds)Deliveries to fabricators—

95.62

Mar. 17

—Mar. 17

„

INSTITUTE—-For

Crude

26.000c

■

Copper production in U.

10.000c

24.700c

424,460

(BUREAU OF MINES)—Month

As of Jan. 31

10.500c

11.000c

-Mar. 11

—.

"""*

municipal

coke

COPPER

AVERAGES:

DAILY

(net tons)
coke (net tons)

Oven

12.800c

11.500c

:—t.—r——Mar. 11

•

;

Beehive

13.000c

Mar. 11

EN¬

—

Month

—

(BUREAU OF MINES)—Month of Jan.:

Oven

23.725c

Mar. 11

—

U. S. Government Bonds——

Average corporate-!

Group

and

COMMERCIAL

———

,—

MOODY'S BOND YIELD

CONSTRUCTION

Bituminous coal and lignite (net
tons)
anthracite (net tons)

$66.49

$43.83

Group———.
Group

Baa

500,852
21,662
330,520

118,220

■

and

February:

COKE

5.967c

$66.41

$41.83

Utilities

—,

68,657

—

Pennsylvania

$66.41

——

——..

Industrials

288

6.196c

-—. —

a3,—IZZ-I—IIIZII

Public

311

Mar. 17

at,

PRICES

7 Aaa

423,633
16,922
288,491

order

—

Federal

11,860,000

$41.17

—

Railroad

13,156,000

$66.41

.——

12,945,000

6.196c

———i

at—

Average corporate———

Public

12,996,000

Mar. 10

S. Government Bonds—.

Industrials

180,346

January:

Total U. S. construction-.
Private construction
Public construction

112

.Mar. 10

——..

—~—-.Mar. 11

.—

Railroad

GINEERING NEWS-RECORD
February (000's omitted):

at—————————•<——

Louis)

BOND

—Z———

ERAL

(primary pig. 99.5%)
Straits tin (New York) at
U.

82,343

77,010
190,237

195,777

—

.omitted)

QUOTATIONS):

Aluminum

MOODY'S

75,503

70,941

I
—

January:
factory unit

appliance

CIVIL ENGINEERING

copper—

Louis)

—

120,897,000

—„——i—-Mar. 10

ton)
—.——
ton)————

refinery at————
;*
refinery at
r.—!

Export

laundry

Production

Domestic
Lead

(tons

.DIVIDENDS—PUBLICLY REPORTED BY
S. CORPORATIONS—U.
S.
DEPT. OF
COMMERCE
Month
of
January
(000's

PRICES: ;

gross

(E.

DUN

—

(per lb.)—_—

(per

period

of cars on
of month) :

State
Mar.

—

COMPOSITE

Scrap steel

home

Month

RESERVE

(in 000 kwh.)

Finished
'

COAL OUTPUT

BRADSTREET, INC
AGE

end

Orders for new
freight cars
New freight cars delivered

SYSTEM—1947-49

IRON

grades

pounds)
(tons)

AMERICAN RAILWAY CAR INSTITUTE

EDISON ELECTRIC INSTITUTE:

FAILURES

all

2,000

Dryers

OF MINES):

Bituminous coal and lignite (tons)-.
Pennsylvania anthracite (tons)—_—.
DEPARTMENT STORE SALES

.—

—1

——

Electric output

output
of

CASH

——Mar. 12

municipal—

_1;

Federal

Ago

76,481

(tons

(domestic)
Combination washer-dryers

54,803,000

„•——————,——Mar. 12

construction——
and

smelter

sales

215,409,000

92,018,000
55,824,000

552,518

Year

Month

pounds)
at

Total

2,896,000

198,908,000

54,582,000

573,825

construction

State

INSTITUTE, INC.—Month

AMERICAN HOME LAUNDRY MANUFACTUR¬
ERS ASSOCIATION—Month of

12,136,000
8,001,000

ENGINEERING

—

ZINC

zinc

Stocks

6,327,735

NEWS-RECORD:

of that dates]

Month

AMERICAN

1,417,000

8,025,000

3207,744,000
"19,593,000
*31,634,000

are as

January:

8,236,000
27,966,000
2,511,000

595,930

—_——

of cars)—Mar.

(no.

of quotations,

cases

Ago

86.5

freight loaded

freight received from connections

or,

either for th$

are

Latest

RAILROADS:

Revenue

(number of

that date,

Washers

—Mar.
—:

7,193,720

15,103,000
7,500,000

_Mar.

at_—

Revenue

CIVIL -ENGINEERING

"2,604,000

Year

Ago

392.0

§2,610,000

Mar.

———

—.

"Distillate

Month

production and other figures for tht

cover

Dates shown in first column

Shipments

fuel oil output (bbls.)——
Mar.
Residual fuel oil output (bbls.)—.—...
—
Mar.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
—Mar.
Kerosene (bbls.) at.
i
—-—
——Mar.

month ended

—

Distillate

Week

§92.2

month available.

2,000

—,

to stills—daily

runs

Mar. 22

output—daily average

gallons each)

Crude

—Mar. 22

—

statistical tabulations

INSTITUTE:

PETROLEUM

Crude oil
42

and

Week

Indicated Steel operations (per cent capacity)
Equivalent to—
Steel

following

latest week

STORE SALES
SECOND FED¬
RESERVE
DISTRICT
FEDERAL
RESERVE BANK OF NEW

4.30
-

YORK—1917-49

3.95
-

Average=10o—Month of January:
(average monthly), unadjusted

Sales

COMMODITY

NATIONAL

Orders received
Production

——a

—.—.—

at end of period

(tons)

369,514

324,109
301,751

345,179
298,371

AVERAGE

ROUND-LOT

474,212

423,667

431,708

418,353

110.56

110.76

111.10

109.79

TRANSACTIONS

ACCOUNT

FOR

MEM¬

Total purchases^.

Short

sales

Other

sales

Total

sales.

——i——

transactions initiated

Other

—

Feb. 21

Other
,

sales
sales

sales

Total
Total

Other

Total
Total

sales

Total

405,880

545,690

283,000

60,000

60,800

42,200

60,000

355,900

Feb. 21

468,340

282,420

525,700

416,700

510,540

342,420

—

Feb. 21

763,435

645,209

846,223

440,030

101,470

—Feb. 21

139,270
796,565

115,020

122,900

711,265

Feb. 21

1,035,970

——

812,735

1,150,990

629,156

3,959,365

4.141,793

1,821,600

631,350

599,940

442,580

3,383,545

2,972,125

Feb. 21

3,739,860

1,685,676

4,014,895

3,460,585

4,339,800

2,128,256

——

Feb. 21

—Feb. 21

—

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

LOT

DEALERS

SPECIALISTS

AND

EXCHANGE—SECUURIT1ES
Odd-lot

sales

Number

Dollar
Odd-lot

(customers'

shares,,

value

——,—

orders—Customers'

Short

shares—Total

sales
—

—

ROUND-LOT
—

—

sales

SALES

THE

1,395,097

1,871,526

816,685

$69,718,840

$92,799,000

$36,482,829

440,080

370,310

469,310

248,180

440 080

370,310

469~3lb

248^180

Feb. 21

734,768

657,580

827,560

386,360

—

S. DEPT.

commodities.

Farm

foods-

—

Meats

All commodities

95.5

Cash

119.2

119.4

119.5

90.3

91.1

99.8

Net

Mar. 10

107.4

109.5

Net

98.9

101.0

104.6

127.6

125.9

STRUCTURAL
OF

STEEL

15,865,000

*8,994,000
*6,763,000

9,138,000
6,727.000

(AMERI¬

CONSTRUC¬

AVERAGE

235,784

STOCKS —Month

196,510

162,158

224,260

YIELD

266,600

316,742

Feb.:

(125)

3.26

incl.~Amer.

Tel.

Tel.)

(24)—

(10)

4.54

7.06

3.84

3.89

4.62

3.69

(not

3.21

4.50

(25)

3.92

4.49

4.78

2.48

2.51

3.12

3.41

(200)

firms

carrying

customers'

extended

net
to

hand and in

value

margin

debit

3.36

4.62

accounts—•

balances
S

listed shares
on U.
on

S. Govt, issues

other

collateral

*$3,421,000
146,000

126,095

374,000

357,000

1,226,000

1,159,000

328,325
936,509

305,866,136

466,000

506,000

2,105,000

2,189,000

$784,227,845

banks in U.

free credit balances

$3,452,000
155,000

280,825,782
106,400,853

customers

36,160,074

$836,828,096
656,015,960
79,026,045
77,545,191

22,000,000

89,000,000

73,375,829
31,914,879
18,000,000

$285,215,969
5,274,249

$285,906,727
5,918,394

$274,781,548
4,393,554

$279,941,720
2.781%

$279,988,333
2.704%

$270,387,994
2.778%

276,665,190

$2,613,205

204,969,173
106,779,763
270,630
1,665,781

RAILROAD

EARNINGS CLASS I ROADS (AS¬
SOCIATION OF AMERICAN RRs.)—Month
of January:

Taxes

644,544,329
78,905,591

—

railway operating income before charges
income after charges (estimated)

UNITED STATES

GROSS

DEBT

GUARANTEED— (000*s
of

Feb.

General funds balance

of Jan.

*15,757,000

6,664,000

Mihnber borrowings
Member borrowings

784,570

127.6

97.2
149.9

15,626,000
8,962,000

;rr.,

—

(15)

Total

9,719,950

99.3

*96.6

*161.0

Average=100)—

NEW YORK STOCK EXCHANGE—As of Jan. 31
(000's omitted):

8,935,380

127.6

6,869,000

5,155,000

12,024,000

Avge—100)—

goods

COMMON

Insurance

704,390

Mar. 10

*6,749,000

*5,197,000

157.6

WEIGHTED

Average

20,296,750

107.9

*11,946,000

INSTITUTE

Banks

19,592,360

107.2

56,124,408

11,812,000
6,714,000

goods

Industrials

646,180
14,784,410
15,430,590

Mar. 10

56,208,491

5,098,000

(1947-49

number

Railroads

740,140

^Includes 991,000 barrels of foreign crude runs.
SBased on new annual capacity of 147,633,670 tons
1, 1959, as against Jan. 1, 1958 basis of 140,742,570 tons,
fNumber of orders not reported since introduction of
Monthly Investment Plan. iPrime Western Zinc sold on delivered basis at centers where
freight from East St. Louis exceeds
one-half cent a pound.
♦Revised figure.

31—

DEPT.

TION)—Month of January:

As
as

;

manufacturing

CAN

19,326,230

Mar. 10

other than farm and foods

Dec.

Total operating revenues—.
Total operating expenses
-

products

Processed

indexes

FABRICATED

18,586,090

47,061,671

$798,014,000
55,171,089

manufacturing

Nondurable

Feb. 21

100):

47,868,081

$814,700,000

employees in manufac¬
turing industries—

All

Feb. 21

Commodity Groqp—
All

All

Estimated

Mar. 10

SERIES—Month

•

Employment indexes
All manufacturing

Feb. 21
—.—

LABOR—(1947-49

50,337,407

Market value of listed bonds

—

$848,962,000

manufacturing (production workers)

.Market

COMMISSION

WHOLESALE PRICES, NEW SERIES

omitted)

customers

Total of customers'

(SHARES):

124

106

customers—month of

Durable go»ds
Nondurable goods

Member

STOCK

sales

Total sales

EXCHANGE

Other

5,816

sales—

.Short

10,279

840,783
24,098

*138

January:

Credit

MEMBERS

round-lot

1,877,342

1,675,136

Feb. 21

STOCK
OF

—

—~—

(000's

LABOR—REVISED

Utilities

1,405,376

8.545

dealers—•

SECURITIES

ACCOUNT

1,683.681

$81,199,968

Feb. 21

sales

EXCHANGE

Total

$42,744,976

Feb. 21

——

Round-lot purchases by
Number of shares

FOR

989,612

$110,987,325

sales by dealers—

Other sales

TOTAL

2,233,610

$85,178,715

Feb. 21

value

Number

1,700,754

$99,429,957

Feb. 21

—

Customers' other sales
Dollar

Round-lot

1,939,608

Feb. 21
Feb. 21

short sales

Customers'

DM)

Feb. 21

sales)—

total sales

ultimate

EMPLOYMENT AND PAYROLLS—U.

MOODY'S
—-

——

closed (tonnage)—estimated
Shipments (tonnage)—estimated

purchases)—t

(customers'

December

Contracts

STOCK

COMMISSION

—-—

——

purchases by dealers

Number
4

dealers

EXCHANGE

Number

Durable

3,252,129
488,460

—...

—Feb. 21

—

Payroll

members-

138
105

ELECTRIC INSTITUTE—
Kilowatt-hour sales to ultimate customers-

506,256

935,835

——

for account

SYSTEM—1947-19 Average=~J 00—
February:

EDISON

All

Feb. 21

...r

—,—

—;

582,480

897,000

465,700

-———:——

sales

Other

r-—-

purchases——:

Short

Feb. 21

259,680

———,—

transactions

1,156,680

floor-

—

sales

round-lot

Total

the

off

——......

sales

442,720
2,235,550
2,678,270

1,904,960

Feb. 21

—

initiated

purchases,

Short

—

...

~_L—,

320,190
2,231,150

Feb. 21

———

transactions

Other

1,098,570

the floor-

Total purchases—,———...

Short

2,749,880

2,121,280
2,553,360

,-w—Feb. 21

—

-———.

2,201,040

2,613,450
432,080

Feb. 21

——-—■

——-——

—

—^

from ultimate
December

———-———.-——Feb. 21

—

SERVE
Month

Adjusted for seasonal variation
Without seasonal adjustment

Revenue

specialists in stocks in which registered—

125

Month

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

100

133

Mar.

190

102

235

129

265,719

Mar.

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

240

104

(average daily), seasonally adjusted

DEPARTMENT STORE SALES—FEDERAL RE¬

321,182

315,717

Mar. 13

—.

Mar.
—Mar.

——

————.

activity—

orders

105

(average dally), unadjusted

ASSOCIATION:

(tons)

Percentage of
Unfilled

INDEX

PAPERBOARD

Sales

MOODY'S

Net debt

Computed annual rate

$779,752,776
651,090,608

DIRECT AND

omitted):

„

The Commercial and Financial Chronicle

Thursday, March 19, 1959

(1338)

Bogardus V.-P.
Of J. P. Morgan & Go.

Graham

Hurley Bogardus has been
elected a Vice-President of J. P.

February Sales of Mutual Fund Shares Top
"Investor

Alexander, Chairman.
Mr. Bogardus is in the bank's
municipal bond department.
He
has been with J. P. Morgan & Co.
since 1949 and has been an Assist¬
ant
Vice-President
since
1951.

use

investment

George A. Mooney, Executive
Association of Investment Companies,

National

nouncing February industry figures.
He
said the 154 mutual fund

"•

offer the shares to the

ary,

net

received by invest¬

money

new

companies for investment during Febru¬
1959, represented 0.8% of total industry

assets.

open-end

002,458,000, up from $13,705,526,000 on Jan. 31, 1959: Total net
assets of the Association's member companies on Feb/ 28, 1958;
were $9,193,238,000.
The Association reported that about one-third of the increase
in assets of its mutual fund member companies from February,
1958 to the end of February, 1959, was attributable to purchases
of new shares. The balance was accounted for by market appre¬

Selected Investments
135 S. La Salle St., Chicago 3, HI.

Incorporated j

Investors
ESTABLISHCD 1925

A mutual fund investing in

list of securities selected for

possible long-tefm growth of

capital and income.

j
j

Income Fund
A mutual fund investing in

list

income.

of securities for current

'
'

A prospectus on each
fund is available from
your

'
'
'

investment dealer.

200 Berkeley Street

Boston, Mass.

I
|

27,882

new

All-Time

ration

reports

assets.

Investment

Total

new

Corpo¬

high in net
climbed

assets

net

$27,000,000 as against $15,000,000 a year ago. Per share value
rose from $4.14 as of Jani 1, 1958
to $6.49 on Dec. 31, 1958, an in¬
crease of 57%.
Today's new high
reflects an increase in per share
to

over

$4.14 as of Jan. 1, 1958
to $7.52 as of March 17, 1959, an
increase of 82%. The increase in
total net assets

due to appre¬

was

ciation of the Fund's portfolio
sale

well

Charles

the

from

President of
asked
to predict the growth of the elec¬
tronics industry
states "in my
Salik,

but to review the almost unlimited

list

investing

in:

selected for conservation of

principal and current in¬
come

and in

selected

common

for

stocks

income

and

profit possibilities.

marily in

new

experi¬
menting in highly sophisticated
applications of electronic princi¬
ples. Advanced studies of plasma
physics, ionic propulsion, stimu¬
lated emission phenomena, solid

investing pri¬
stocks

selected for possible longterm

products yet to be
marketed to comprehend the true
growth characteristics of the elec¬
tronics industry.
Some of these
products cost million of dollars
apiece, others account for only
pennies per unit, but in total,
these new products will change
the very character and nature of
the industry as we know it today.

growth of capital and

future income'.

National

write to

shows

Wellington Company
Philadelphia 3, Pa.
Check

□

one

are

come

products

new

for

Fund
'
i.
•.*.

the

;

net

income, payable,

holders

business-

'ff

of X;;

March 20,1959.

ffnduietttce
50

c(£cm/tm)u, Trustee

State Street,

been

Boston 9, Mass.

Incorporated 18.18

that

dividend
total

home, industry, business and the

ucts

will

These electronics prod¬
affect

greater degree
scientific

your

life

than all previous

achievements

since

year

riod

the

fund

Full text of Commercial and Financial Chronicle : March 19, 1959, Vol. 189, No. 5830

FRASER