Full text of Commercial and Financial Chronicle : March 26, 1959, Vol. 189, No. 5832

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UNIVERSITY,
MICHIGAN

CANADIAN INVESTMENT OPPORTUNITIES FEATURED

MAR 27 1959

~fke Commercial and

SINESS ADMINISTRATE

LIBRARY,

Reg. U. 8. Pat. Office

/Volume 189

;■

Number 5832

New York 7, N. Y;,

Thursday, March 26, 1959

Price

50 Cents

Copy

EDITORIAL
■

'■

See It

By A.<C. ASHFORTH*
y

President, The Toronto-Dominion Bank

Toronto, Ontario

•jl.. "Thou art beside thyself; much learning doth

'■^rnake thee mad" It

was with these words that
rJFestus addressed. St. Paul after hearing the
apostle's account of the way of salvation and how
it

that

was

became

Leading Canadian banker

made

by the spectacle of "sacred cows"

confident of the future of

The

doubt about
for the

our

firm beliefs

long term but,

as one

econo¬

mist has

economic,

parisons of economic performance in
1957 and 1958 and took a longer look

said—in the long term we
dead, and most of us are preoc¬
cupied by the short term. We would

are

As to Professor

Slichter,

have

finds it difficult

one

impression that he was hugely en¬
joying the kicks he was delivering to the "sacred
cows." One sometimes wonders if he, as well as a
good many others who talk in somewhat the same
!

finds fault with

many

most

people believed in them

been

nard

followers,

Keynes appeared

the

get

even

reason

that

full

text

Slichter's

Dr.

testimony

see

/ DEALERS

Canada

times

markets, and wound up
possession of the elite currency in the world
today.
Throughout the American Continent, 1958 was

they

and
us

trially

for¬

uneven
year.
In common with the United
States, Canada opened the annum with swollen
inventories, surpluses in many categories, soggy

the recent past.

since

1945

firmly fix in
which

has

our

taken

diversification

Certainly,

are

and

page

metal

place since the war—for growth and
the ingredients of further growth and

Continued
address

by Mr. Ashforth before the
Association, Calgary, Canada, March 9, 1959.

prices, and rising unemployment. ; As the
however, it took on a brighter as¬
pect. Inspiring to all was the work on, and com¬
pletion of, the St. Lawrence Seaway, a national
goal for decades; and the construction progress
year wore on,

minds the growth and diversification

page

A. C. Ashforth

should

Canadian institutions and

have

transformed economically and indus-

*An

♦For

road

The fact is that Canada has been

scene.

Continued

heady

com¬

the past 10 to 15

of the present which makes

perhaps until John May-

upon

the

upon

over

The fifties

pretty

fewer

made

have generated a certain excitement

them until the rise of Franklin Roosevelt and his
New Deal

reflect

years.

did believe in

the

about

reassurance

have traveled

of the time tested

principles of economics largely for the

term

back

to avoid the

way,

short

Canadian

page

the Trans-Canada

pipeline, to bring trillions

Petroleum

LONG-TERM CANADIAN CASH DIVIDEND PAVERS—An
integral feature of the cover page
article "Canada Advances Toward New Economic
Horizons" are the tables showing Canadian listed
common
stocks on which consecutive cash dividends have been
paid up to 130 years.

Continued

UNDERWRITERS
BROKERS

Municipal

and

DEALERS

STATE

'•

RAILROAD

V:;PUBLIC
7

Burnham

Members Pacific Coast

and

Company

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

•

W 4-1400

TELETYRC NY 1-22S2

COSURNHAM

Distributor*

San Diego, Santa

Bond Dept.

Teletype: NY 1-708

Markets

Active

Dealers,

Banks

Bell Tel. of Canada

Members

American
'

-i

Stock
.4

;

25 BROAD

gouthuxAt COMPANY

NEW YORK 4, N. Y.

DIRECT

DEPARTMENT

BRIDGEPORT

•

PERTH AMBOY

Company]

Non-Callable

and

California

{

;

interest payable

Price 90.50

115 BROADWAY
NEW YORK

Co.

(U. S.)

Municipal Bond

Dominion Securities
corporation
Associate Member of American

1 NORTH LA SALLE ST

CHICAGO

Municipals

Department

MEMBERS NEW YORK STOCK EXCHANGE

DALLAS

•

Canadian Dollars only.

WIRES TO MONTREAL AND TORONTO

Goodbody

•••

Teletype NY 1-2270

STREET

Inquiries Invited

CANADIAN

Exchange
.

BANK

Bonds due February 1, 1981

Principal
Block

Chase Manhattan

;

(Guaranteed by the Government of Canada),

Rights

-j

Southern

$500,000

the

Securities

Canadian National Railway

ESTABLISHED 1832

New York Stock Exchange

DEPARTMENT

Brokers

T.L.Watson &Co.
■

BOND

;

Correspondent—Pershing & Co.

New York

Maintained

and

Ana, Santa Monica

Inquiries Invited
California

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Net

;/'

Exchange

Encino, Glendale, Hollywood. Long Beach,

Dealer

FIRST

/ Bonds and Notes

Offices in Claremont, Corona del Mar,

MExacts Ntr« YORK AND AMERICAN STOCK EXCKANOE3

CARLE.

Associate Member American Stock Exchange

THE FIRST NATIONAL CITY BANK

Underwriter-

BONDS

...

SECURITIES

30 BR0AD ST

Street, Los Angeles 17,

Members New York Stock Exchange

FOREIGN

/ &

623 So.. Hope

UTILITY

BANK
nt
bond department

Public Housing Agency

Lester, Ryons & Co.

CORN EXCHANGE

—

MUNICIPAL

California

INDUSTRIAL

IIAnover 2-3700

CHEMICAL

AND

Securities//-:!.//

telephone:

and

Housing

Stale and

on page

State, Municipal

U. S. Government,

Public

■

economy in 1958
excellent export
of construction,

expanding economy

quite capsuled review of the Canadian
what stands out most are (l)sthe
showing, (2) the sustained level
(3) the new high in consumers
purchasing, (4) the resilient bounce-back from re¬
cession and (5) the magnificent position and phe¬
nomenal strength of the Canadian dollar, despite
a trade deficit.
In a year of considerable business
travail, Canada gave an excellent account of her¬
self, built renewed world-wide confidence in

some

of our professors and politicians alike
keep their feet more firmly planted on
terra firma particularly when they assume the
role of leaders of popular thought on matters

if many

would

•

slowing down in
caused

notes

sumed, if not spectacular, advance vin, Canadian com- •
industry, transportation and finance during the j
current year. High quality of Canadian stocks evidenced
in tabulation showing companies and financial institu¬
tions which have paid cash dividends uninterruptedly
for periods ranging from five to 130 years.

oil, and a great future for his country "if we
take advantage of our opportunities."

has

some

merce,

our growth over the past two
people to wonder what was in
store for the Canadian economy. I think there is little
years

all

the Canadian balance sheet for j
1958 and outlining the expectations of a broadly re- f

possible Canada's second highest standard of liv¬

hack for

holds views which
and stare. We should, however,

to gasp

Enterprise Economist
Containing

outlook; and reviews the tremendous growth
now
occurring in the Western Provinces. Looking further
ahead, the author foresees reversal in the decided set-

learned professor who clearly

cause

By DR. IRA U. COBLEIGH

assesses

economic

being kicked lustily around. We do not claim to
idbe an authority on sacred cows, and we certainly
^should not undertake a psychiatric diagnosis of

feel much

New Economic Horizons

ing in the world; voices optimism regarding the current

€»

the questions raised
growth of domestically
versus
internationally oriented industries. He ticks-off
the signposts of Canada's accomplishments which has

rimittee.* The Senator from Illinois seemed to be

•

in the issue of diversification and

evangelist of it. An
expression much more of the earthy was drawn
from the learned Senator
Douglas the other day
by the credo of .the equally learned Professor
Slichter as outlined before a Congressional Com"refreshed"

,-T

*
*

■

,V.

Tel. WHitehall 4-8161

iBank nf Ameiua

Stock Exch.

y°riv5i LI'

Tele. NY I-7Q2-3

300 MONTGOMERY STREET

j|J|j|j^ $Af< FRANCISCO 20, CALIFORNIA]

The Commercial and Financial Chronicle

(1406)

The Security

Try "HANSEATIC"
When time is

they to be regarded,

New York

system, plus a wide range
contacts, assure you of

getting the complete cover¬
need in your Over-

age you

the-Counter problems.

public acceptance on their
introduction in the fourth quarter
wide

Ltd.

when operations of
the major auto companies in the
a

United

New Yoik Hanseatic

one

low levels,

The

formed in

company

has the manufacturing and

American Stock Exchange

1904,

selling

Motor

which

owns

Teletype NY 1-40

trucks

•

CHICAGO

•

SAN FRANCISCO

parts in
Canada, and

wealth, except
British

& CO.

includes
South

Africa,
Australia,
New Zealand,
Malaya
and

INC.

Members

Render

all

Unlisted

made

Charles King

include

Ford,

has

Exchange Place, New York 5
Teletype No. NY 1-2762

for the

. .

of New

mu-writpt

WEST VIRGINIA
VIRGINIA

SOUTH CAROLINA

CAROUN

Ford

Tokyo, Japan
111 Broadway,

RICHMOND, VIRGINIA

Sales & Earnings
Consolidated sales for
ended

the year

Dec.

31, 1958, were $462
million compared with $490 mil¬
lion for 1957. Despite lower sales
volume, net income increased to
$21,062,315 from $17,332,654. Per
share earnings on the combined

■

/ •

N.Y. 6 COrtlandt 7-5680

crrrrp

joined

;

y Bacon,

;

Stevenson & Co.

sales

from

volume

$358 million

...

<Canad,an Pacific Railway

record

Complete Service in

Canadian Securities

for

,■

Institutional Investors

become in-

1958.

c r e a s

value

are

Dealers and Brokers

voting Class B. The latter is con¬
vertible into Class A at any time
share for share.

$3,000 will
a good
automobile, or
a
boat, but it

tional

•

Gairdner & Company
Inc.

addi¬

takes

Member:

sums

maintain

tieroert

Affiliate:'

provide
the necessary insurance. One may
invest $3,000 in land or improved
real estate but money is again
ance.

which

...

NY 1-3760
-

Company Limited

Undencriters

and

Distributors

Canadian Securities
Members

Leading Canadian Stock Exchanges
Business Established. 1921

Montreal >, Kingston

Toronto

can buy about 100
stock
in
a
business

$3,000
of

" '

Gairdner &

and to

•„

(Assoc.),

Street, New York 5, N. Y.

WHitehall 4-7380

shape

good

Seeger

60 Wall

the

investment

American Stock Exchange-

money

Cash dividends have been paid

regularly since 1933. The current

buy

required for taxes and mainten¬
Dividends & Working Capital

Corporate Executives

gly

con¬

scious.

ico

Bankers

Research Analyst

Reasons for this consistent earn¬

ing

& Investment

Brokers

HERBERT L. SEEGER

.yW;

dis¬

also

/•;*

Yamaichi Securities Co., Ltd.

offer excellent

prices

York, Inc.

Affiliate of

possibilities for capital apprecia^on S^ing a yrnid in the meantime of approximately 4.10%.
; •>

Securities Company:

I believe the class A & B shares

M011-

{

Yamaichi

constructive

anf timeiy +steP-

attributed to the
policy of operating a single-shift
tributes Ford and Fordsoii tractors
production
in place
of
double*
and
Ford
and
Dearborn
farm
shifts and lay-off schedules, and
equipment. Sales in Canada for diversification of
operating areas
1958, in this division, jumped 27%
through overseas subsidiaries/ . y V
over the previous years and 1959
is expected to be a better year. A
:
Capitalization ■>' ' >
new 10-speed tractor, recently in¬
troduced, has been described as
The company has no funded
the most significant development debt;
the capitalization consistsof 1,588.960 shares of non-voting
in farm tractors in 20 years.
Class A stock and 70,000 shares of
Canadian

The

I of

increased

period ended Dec. 31,

Machinery

Farm

BONDS

NORTH

CanadLn

1,450 dealers abroad.

write

wider distribution of

$463 million for 1958. Share- d: With the price, of subway rides
from Ford Motor Company, Dear¬
holders'
equity
increased y from and newspapers V tripled and the
born, Michigan, and various other
$67.45 to $123.3$ a share.
Net cost of most raw materials double
types of vehicles from Ford Com- earnjngs including dividends from or triple the price once considered
n o r m a 1, the
pany of England. These are dis¬ all
subsidiaries
have
averaged
tributed by approximately 1,000
investor, in
$11.33 on the combined Class A
dealers
throughout Canada and & B
shares
for • the
general, has
nine-year

Phone: WHitehall 3-7830

MUNICIPAL

Call

since

consolidated

time

imported

are

cars

helm

log-

in 1915 has been at Members: New York Stock Exchange
1950. Since that V
arid American Stock Exchange

company

the

For current information

cabitahzation

The

Vlso, Cm

seem

/•

President Rhys Sale who
the

Canada

Thunderbird
40

version -of the Mercury*

Mercury, Edsel, Meteor and Mon¬
arch. The Lincoln Continental and

for Banks and Dealers

the

and

Meteor

low

woui^

* its
S.-Ford,

the *U.

STOCKS

sh^

the shares among the smaller investor and potential car buyer

Montrea
Exchanges

arch, the latter being a modified

Vehicles

Securities

the

called

Indonesia.

brokerage service

t standpoint

turns -out

Canada

version

own

States

company

Ford

United

the

Security Dealers Ass'n

JV.

c"nada slems^^to^e
f

publishes its
own annual reports and maintains *
a certain independence of operations. To meet nationalistic pride,
the

and

This

Isles.

S. WEINBERG,
GROSSMAN

Stock

American

and

branch offices

JAPANESE

With the current trend towards

oro

Common-

the

improvement should carry over
operations of Ford of Canada
whose future prospects look
brighter than at anytime in its
history.

controlled by

is. S°Van pan
Tfl
+r ?ri on C+"y- +
traded
the Toionto,

British

the

our

into

Company
(U.
S.)
56.1% of the Class B

only auto company in Canada t

practically all

to Principal Cities

Mobile, Ala.
wires to

Direct

the first period of 19M This

over

standing this large parental interest
Ford of Canada is still the

spare

BOSTON

PHILADELPHIA

New Orleans, La. - Birmingham, Ala

fiJsfai^rter37%

Class

and

■

NY 1-1557

HAnover 2-0700

Exchange■;
Exchange

Iff Rector St., New York I, N. Y.

for tnetirst quarter is running s/ /<?

stock and 26.2% of the
non-voting.
Notwith-

voting

rights for Ford passenger cars and

Members American Stock

_n-

VTt

Management

Ford

Steiner, Rouse & Co!

£?55, and 19o9 is expected to be a
£e|Jer yf,ar J
V. Recently Forid Mlotor (U. *-••) a "

greater share of the auto market.

in its history.

Bought—Sold—Quoteo

Railway—Her-

Members New York Stock

;

and there are strong
that Ford may obtain

Ford of Canada is

120 Broadway, New York

Pacific

bert vL.

:==================^^

year

indicatiS„s

History & Operations

Associate Member

Wires

were

of the best years

Established 1920

Private

States

of last

Ford of Canada for 1958 reported

Corporation

WOrth 4-2300

year

Partner,

Seeger, Research Ana>lyst, Bacon, Stevenson & Co.,
New York City. (Page 2)
;

City

Ford Motor Company of Canada

Louisiana Securities

Canada

King,

City.j (Page 2)

production in the final quarter of
1958 appreciably increased, y Mr.
Sale,
the President,
said that
Members: American Stock Exchange, business for 1959 is expected to
Toronto Stock Exchange, Montreal
be relatively good and warrants
Stock Exchange and Canadian
reasonable confidence. The comStock Exchange
pany's new 1959 models received
Partner, Charles King & Co.,

Company

Charles

—

Canadian

private wire

Alabama &

Charles King & Co., New York

below 1957 but

21%

Canada was

Thursday, March 26, 1959

Participants and

Motor

Ltd.

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

as an

CHARLES KING

faster.

Ford

(The articles contained in this formn
are

' '

/ Their Selections

participate and give their reasons for favoring a particular security.

important to

large and experi¬
enced trading department
can
help you reach the
OTC markets you need —
A nationwide

Forum

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

our

This Week's

I Like Best

A contnnoDS forum in which, each
Kb

■

Brokers, Dealers only

For Banks,

you,

■

■■■*

Quebec

Calgary Winnipeg Vancouver

Hamilton

London

New York

Kitchener

Private

rate of $5.00 per share was estab-; transports all sorts of commodities
lished in 1955, having been upped and manufactured goods — owns
$10.44. Lower manufactur- from $4.25 in 1954.
yy; millions of acres of land (oil and

Edmonton
wire

system

Class A & B stock equalled $12.70
versus

California Western

ing

and improved oper-

expenses

ating methods

States Life Ins. Co.

said to account

are

for the increase in net. Nineteen-, dividends.

fifty-eight

was

the first

year

Canadian and

overseas

counts

consolidated.

were

income

viously only dividends from
cooc

subsidiaries

seas

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

were

Dividends from this

that
ac-

Pre-

Ross

Building, San Francisco 4

YUkon 6-2332

Wire

Tele. SF 1011 & 1012

System*—John

Legg

Troster, Singer &

Y. C.

Co., A*. Y. C.

been

steamships,?'airlines, besides pro-

balance

The

has

telegraph and exof plant expansion. From the be- press
services. In this case no
ginning of 1949 to the end of 1958 additional money is required,
used

to finance

viding

major program

capital expenditures totalled ovpr
included. $106
million.
Working
capital

source

in 1956

,0v>" w*

1957

approximated
of
net
profits

the full
of such

e c

n e

sharply

Consolidated

unit

sales of

new

trucks and tractors
numbered 183,879 in 1958 compared with 199,395 in the previous
year.
Canadian sales
of
North

could

the

from .1951

current

dividend

reasonably be expected.

;

Toronto,

and

Despite the fact that net earnings are running near the highest

The
in

Conclusion

"^ia

^ g'

traded
and

are

cars rose
..

73.1%

over

1957. New

sales by overseas subsidiaries

were

5% below 1957 but increased

truck sales

overseas

partially off-

set reduced truck sales in Canada,

Production of

cars

and

trucks in

all-time

high

the Class B 198.
of

128

(U.

S.)

Boston,

Parifir

other

—

& B

35 Industrial Stocks

ttel^tetanding
shares
common

FOLDER

Uum^w^^mmonsnwes,
possession,

the Class A

20-Year Performance of

regional

At the end of

selling at about 9 times
earnings compared to 12 times in

most

OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX

London,
Philadel-

1955 when th* were
owhbd'by U. S. investors,
level of 158 and 28.21%
by U. K. and other British
At current prices

Class A reached

N. Q. B.

listed

also

are

Montreal,

Exchanges.

^k,?Vy?e Pafe"ger cars fell level in theselling well history the ranarhan
company's below th£ jg57;:
16.4% but sales of imported Bnt- shares
car

SA\! |N<s£

Stock Exchange.

;

passenger cars,

jp^P

Practically all this company's
properties are located in Canacfa

through 1954 but has been built

increase

;

news,

which could give some measure
of protection if inflation in the
amount
up since and the consolidated figU. S. A. gets out of control, which,
subsidiaries. Accumulated earned ure now stands at approximately 0f
course, no one wishes.
surplus of these subsidiaries at the $103 million, the highest in the'
$3000 (or elose to it) at th^s
end of 1958 amounted to $39,801,history of the company. Now that wl.iting wm purchase 100 shares
000 Canadian. Funds, after divi¬ the major part of the expansion
of. Canadian Pacific, common
dend withdrawals by the parent
program has been completed,- an
stock, listed on the New York
and

ish
Company, Baltimore &

.timber), produces.lead and zinc
at a low cost, and controls hotels,

over-

company.

Walter C. Gorey Co.

paid out in

Since 1950approximately33V2%
of earnings have been

nadians.

and

There

24.49%

are

Ca¬

14,066,271 Ca-

are

Continued

page

ON REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N.Y.

Volume

189

Number

5832

The Commercial and

Financial Chronicle

(1407)

3
*}

Wanted:

INDEX

An Economic

LlCHTinSTllli

». a.

Breakthrough
HENRY

mmmmm

FORD, II*

starting on the cover page, "'CANADA ADVANCES
NEW ECONOMIC HORIZONS." discusses the invest¬
opportunities inherent in Canadian securities and, by way of
documenting the views presented, includes a tabulation of the banks
and companies listed on the Canadian
Exchanges which have paid
TOWARD

aus¬

econ¬

our

if labor is relieved of monopoly power so it
on a basis of real power equality. This,
held, would help solve our pressing domestic problems
occur

consecutive cash dividends from 10

management

and from 5

omy can

meet

can

"new productive explosion" in

it is

and put
nomic

end to Khrushchev's serious threat of world

After depicting

competition.

When

consider what

people want out of life, the kind
of world we would like for our

children, most of.
with

would

come

sub¬

stantially
same

the

answers,

j Most of

vidual growth
selffulfillment.

Samuel

was

way

of putting it when

what

"More." He

"More

labor

wanted

might have said,
In
purely

better."

and

material terms, we all want more
and

better

income, more
security, more independence, more
freedom, more and better educa¬
tion, better medical care, more
leisure to do the things we want
to do. As a nation, we have vast
—

unfulfilled
stantial

families

social

needs.

number

still

sub¬

American

of
not

enough
to
support
a
decent; American
standard of living.
Millions are
still crowded into big city slums.
earn

Our

educational

whole

system

and

quantity of the attainable
ideal for a society of such re¬
sources.
Our facilities for caring
for the aged, for the mentally ill,
and
for--combating
crime
and
juvenile delinquency are inade¬
quate!
The Bland Leading the Bland

I'm

sure

war..*-«

a"{V$

will

because

says,

bury

between 'its

in the
system

>/'■'

that most of
with

those

also

f:
f

hide

behind

the

Mr.

munist

resources

Africa

hands.

—Thomas

fall

of
to

the

world

—M. J.
S.

J. Quinn

Oil

Picture

Rathbone

Must

Cease

are

Advice

Can

DIgby

markets

power

may

Seidell

New

York

i_—_!—i__i

•

Reserve

Bank

Economists' National Committee ;oii
Assist

Variable.
w

.■

World

Free

Making

shift'

Redeemable

See

Singer, Bean

(Editorial)!-———-Cover
Stocks——

—

Events in the Investment Field—

;i—

Economics in

Britain"—

Indications of Current Business Activity——

——

Funds

Mutual

riMANCIAI

PREFERRED STOCKS

FINANvlAL

BROAD

Stock

Exchange

ivttitam

WILLIAM

MORR1SSEY,

rtava
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Possessions,

Editor

TELETYPE NY 1-5

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•

Place, New York 7, N. Y.

Thursday,

ST., NEW YORK 4, N. Y.

Office*

pr.fnr
REctor 9 a*™ tn QS7fi
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York

DANA COMPANY, Publishers

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CHRONICLE
tHKUIUVkC

Reg; U. S. Patent

25 Park

New

Philadelphia

ary

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Members

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You

Twice

Published

Direct Wires to

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The State of Trade and Industry-—_—

Washington and

•

—

N. Y.

Teletype NY 1-1825 & 1-4844

———

inc. :

40 Exchange Place,

HA 2-9000

From Washington Ahead of the News—Carlisle Bargeron

Mackie,

Recommendations—

Investment

"Election

Einzig:

Insurance

and

Coming

The COMMERCIAL and

Spencer Trask- & Co.

Metroplitan Broadcasting

$35

—35

page

Ling Electronics
Pacific Uranium

Regular Feature*

bal-J

domestic social prpb-

Monetary Policy Urge We
Gold

specialized in

City

Recovery,

Ounce

Per

pur

—

Discusses

have

Denver

W. L. Maxson

External
Strength of the Dollar and Lagging Employment.---—___ 33

with'

that

Hi^h Court's Ruling

economy

For many years we

Lake

15
21

concerned

wires

Basic Atomics
Funston and McCormick Hail

can

future survival depends on match-

Continued

Direct

Dealer-Broker

;f *Ah address by Mr. Ford at Yale UniVersity, New Haven, Conn.

Congress Reduce Federal Taxes?—Roswell Magill

that, certainly within the lifetime
of our children, we could be sur¬
passed in economic power by both *
China and the Soviet Union.
>
l
to suggest

4-4970

Teletype: JCY 1160

Salt

Exchange PI., Jersey City

Mature Investors Needed—Arnold

Salt Lake City Stock Exch.

Sabotaging International Trade

—Roger W. Babson_____
When

Bank

our

What to Expect When Receiving Advice

radically to Asia, within the life-/!'
time of this audience. They suggest

solve all

Members

—-

J.F. Reilly & Co.,Inc.

.___

intelligent ob¬
predicting
that,
if.

mean

Brainwashing and Bankrupting Americans—Eugene W. Castle

communist

the

present trends continue, the

I don't

MacLEAN INDUSTRIES

Considered About the Future of Railroading

And today many

world

___________

—Sir David Eccles—!

economically, and
at the very least reduce the free
world to relative impotence.

(!ost of Maximum Growth

H. Slichter_—__—_________

McCabe

—William

politically and

are

CHEMICAL

Today's and Tomorrow's Domestic and Foreign

low-priced goods, it could isolate
America
and —Western
Europe

servers

most
com-

resources,

manpower

flood

An Inescapable

Should Be

What

sphere, through the forced, -de--; L'-" Annuities
velopment of vast raw material "
and

_______

The Alternative to Inflation to Expand Economic Growth

Khrush¬

until

the

Breakthrough—Henry Ford II.

ing either Russia or Red China or
•N STA- Notes
1
'
of both in the rate of productive \
News About Banks and Bankers
about' growth in the near future. One;
Observations—A. Wilfred May———r
—
the human con sequences of big¬ reason they are moving ahead so)
fast is that they have so.f
ness in government, industry and
muehj Our Reporter on Governments-!—labor, of the impact of mass com¬ farther to go; than we; For us; to_
Our Reporter's Report—————!——
r
——
munications on our cultural life, carry on an all-out economic race,"
Public
Utility Securities——
-and
the
effects
of increasingly comparable
to
the
arms
race,'
Railroad Securities
^
scientific organization of people would be foolish. And it. is quitefor economic purposes—the total possible, furthermore, that if these 1,
Securities Now in Registration.
—
—effect which has been described countries reached their goals, the J •/ Prospective Security Offerings-!————_i—
sis the society of "the bland lead¬ result would be a great lessening
Securities Salesman's Corner—
of world tensions and a substantial"
ing the bland."
...
.
The Market
and You—By Wallace Streete
—_
V I'm sure we are all deeply con¬
watering down of Marxist dogma.
The Security I Like Best—
v
Nor would I suggest that we can
cerned yvith the problem of peace

plenty.

PERMACHEM CORP. ;

_J 24

difficult moral and spiritual prob¬
lems that arise

BASIC ATOMICS

forced

apparently

and

Economic

Rates—Sumner

com- *•

time

ance

Virginia Electric & Power Co.—Ira U. Cobleigh

thinks it is only a matter of

Asia

Slow Inflationr

empty threat. We can

under

Quite

are

peculiarly

Grove

HYDROCARBON
Wanted:

chev

What of Our Joint Economic and Trading Future?
—N. R. Crump
"____!

draft, ad¬
mittedly, and at a terrible human
cost—but growth that neverthe- '
less must be impressive to people iri nearby underdeveloped .areas.
;

falls far too short both in quality

concerned

com-

thought

growth

had

that

—David

the Soviet Union and Red China—

Henry Ford,

ASSOCIATES

Divergent Economic Interests and Canadian-U. S.
Interdependence—John H. English

indi¬

ACOUSTICA

Solving Current and Future Canadian-United States Problems

that communism *
inherently unworkable as an,
economic system. We have been
sharply challenged in basic science
and industrial technology. We see
evidence of swift growth in both
forting

and

said

cold

war,

ours.

longer

freedom

Gompers
a simpler

This is

opportunity

_____Cover

you

and

possible

for

economic

Dept.

STREET, NEW YORK

Canada's Great Future—A. C. Ashforth—__*______________Cover

difficult !
new

WALL

Telephone; WHitehall 4-6551

ARTICLES ON CANADA IN THIS ISSUE

know, Mr. I Khrushchev.
has lately taken to predicting the
J'
ultimate
triumph of his system :
through economic conquest. There

the

greatest

competition

h society that

and

munist

communism

for

^exceedingly

the

v/ill

Sould agree
iat
want
offers

and

Obsolete Securities

growth.

questions posed by the

buy

(Table I, page 23)
30), along with .other data

Canada Advances Toward New Economic Horizons
—Ira U. Cobleigh—_____
;jl_;

He also decries business negativism, and seeks men with broad
vision and a sense of social justice to break
through the
our

who

130 years

page

consumption, and high and stable employment and income.;

hindering

(Table II,

compared to

obsoletes!

eco¬

totalitarian approach, Mr. Ford prescribes an action program
to foster increased productivity, increased
investment, greater

barriers

10 years

tame

unconventionals

of interest to investors.

"crisis-minded,"

wrong

She's

ment

Industrialist prefers rapidly expanded economic base to
a

AUNTIE MAMIE

Article

President, Ford,Motor Co., Dearborn, Mich.

terity and predicts

and co hi any

CANADIAN INVESTMENT OPPORTUNITIES

foreign subscriptions and advertisements
must be made In New York funds.o- <••••■

Direct

Wire to

PHILADELPHIA

The Commercial and Financial Chronicle
4

Observations.

Commission

now

has no

au¬

thority to inspect the books and
records
of advisers,
and cannot
require them to maintain books
and records.
It claims it has no

adequate

By A. WILFRED MAY

they

is that the first

the

♦

f oible

t h

that

Chairman of the Government Em¬

the

higher

market," the

and

affiliation for the express purpose

bullish

scribe

ployees Insurance Company, which
casualty company has pending an

bearish)
by even the
professional
spe c ulator,
(less

selling variable contracts.

(The

reasonably designed

means

fraudulent practices;
(6) extend criminal liability

prevent

violation

willful

include

rule

order of the Commission.

market

price of Government em¬
The
legislative
timetable for
stock has remained these and other proposals of the
practically unchanged at its SEC is conjectural — what with
sharply
advanced
level,
since the Congress', as well as the pub¬
conforms
with
past experience. Monday's Court decision.)
lic's, interest far more concerned
Apart from the usefulness of these
air
While full cooperation by the with
space,
missiles,
and
data as a tool indicating weakness
But right here on this
SEC is to be assumed, some prob¬ Nikita.
in the market's technical position,
lems involved in dual regulation part of our planet we do have a
this renewed exhibition
of the
may
prove
nettlesome. For ex¬ very real booming fund industry
foible of "the higher the cheaper"
ample, there is the possible con¬ midst a raging bull market, with
is highly significant as a psycho¬
flict with the state bodies regulat¬ potential excesses
to be curbed
logical, but none-the-Jess practical
ing insurance. While the SEC's with alertness and statesmanship.
warning.
harmonious operations with the
A-

Wilfred

with

Consistent

ployee's

May

shorts'

the

habitual increase in bullishness as

prices rise, is the behavior of the
value

discount-below-asset
which

the

closed-end

investment

the market.
Logic would dictate an increase in
the
discount
as
prices
work
higher and riskier, but now again
the opposite has transpired. When
sell

companies

the D-J

most

was

in the 400-500 range,

these

portfolios

were

available at substantial discounts.
But

at the

600-level, the dis¬
counts
instead of being larger,
have practically all disappeared.
now

securities

state

THE

COMMON

merely concerned with dis¬
whereas the state insur¬

are

closure,

commissions

ance

vision

include

investment

super¬

policies

there

Variable Annuities
Keith Funston,
New York Stock

President of the
Exchange, issued

the following statement March 23:

the

within-state

insurance

of time,
facilitated
increasing
mechanisms for distributing com¬

;

This week's decision
(five-tofour) of the Supreme Court hold¬
ing that variable annuity insur¬
ance
contracts
are
subject to

regulation by the Securities and
Exchange
Commission, furthers

mon

course

stocks.

J
"If business investment

plans are revised upward, production
and employment could approach capacity levels during the next
year.
Such a development would be in line with experience in
past recovery periods."
So says the current issue of "Business in
Brief," published by The Chase Manhattan Bank.
Up to now, the missing ingredient for expansion in general i1
business activity later in the year has been a strong revival in :
business investment in new plant and equipment, the bank period- ?
ical explains. However, it seems possible that such an upturn in !
investment may get underway during the second half.
Capital spending has remained close to its recession lows, and +
inventory liquidation continued through! most of 1958. Only in <>
recent weeks have there been signs that accumulation of inven^
tories is being resumed on any scale.. "Thus," "Business in Brief" ri
points out, "corporations have found themselves with limited needs
i
for additional money at the same time that their internal sources/ .,
of funds were rising."
; •
:
This increase in liquidity is expected to be a major factor in
stimulating increased caiptal spending as the year progresses, the
bank survey indicates. The review then continues: "Over the final
six months of 1958, corporations raised roughly $3JA billion in the
bond and stock markets, 29% less than during the first half of the
year. More recently, corporate bond offerings have been running
at less than 50%

during

G. Keith Funston

T. McCormick

that

life

ex¬

tends
its
to
currently pending
proposals to amend the Federal
The basis for the Securities Laws
bearing on the in¬
ultimate ruling is that the variable
vestment company and the in¬
annuity device under which pay¬ vestment adviser. With
the funds
ments to policyholders fluctuate
the most important treatment is
along with the changing market concerned with
tightening up the

area.

variable

annunities

are

Supreme

Court's

decision

raises the essential question of the
future of the
variable
annuity
movement.

position

The

SEC's

disclosed by

present
a

spokes¬

Advisers Act of

1940.

The Com¬

mission maintains that its admin¬
istration of the Act since 1940 re¬
veals

that

inadequate

respects and does not afford
the necessary protection to clients
of investment advisers and other
many

"We

think
will

terest

that
be

the

public

served

New

Banks, Brokers and Dealers

BEECHAM GROUP LTD. A.D.R.*

GLAXO LABORATORIES LTD. A.D.R.
.

TUBE INVESTMENT LTD. A.D.R.

sion.

I have testified in favor of
this position before the Senate of
the State of New Jersey and as a

witness

for

the

SEC

before

the

Federal District Court in the Dis¬

McClung & Co.

807,309,940

-I—

Eoston

1,148,815,881
1.039,000,000
736,973,606

Industrial Production Index Up
The

Federal

Reserve

Board's

*Review available

request

Central

Ohio

become

—

adjusted

Members:

New

York Stock

Exchange

55 Liberty St., New York 5
Tel:

BE 3-8880
Private Wire

Teletype NY 1-4886

Production

a recovery.

nondurable

goods

continued

Continued

Brokers, Banks, Analysts,

with

Co.,

Advisers, Funds, etc.
Serving Wall Street since 1927

System to Canada

SEND FOR FREE BOOKLET

to Staff

SHOWING LISTS and RATES.

(Special to The Financial Chronicle)

ST.
with

expand
on

LOUIS, Mo.

Rothschild

has

Slayton

—

become

408 Olive Street.

THE

Harold A.
affiliated

Company,

March, output was scheduled at 92%, a record high in tonnage
terms. Aluminum production was at a new high in February and
copper smelting and refining remained at advanced levels. Activ¬
ity in business equipment lines increased further as truck produc¬
tion continued to rise and output of farm machinery recovered

Harold

connected

Slay ton Adds

index

A gain in durable goods production in February was marked
by a sharp advance in output of primary metals. The expansion
in buying reflects substantial liquidation of inventories during
1958 and protection against possible work stoppages later'this year
as well as increased consumption of these materials.
Steel pro¬
duction increased 14% to 85% of capacity. In the second week of

FINANCIAL MAILINGS to

Investment

States

9.5

1957.

Walpark Building.

Alfred L. Vanden Broeck & Co.

1% in February

seasonally

(Special to The financial Chronicle)

has

+18.4

SPECIALISTS in

MANSFIELD,

+ 13.7

point in February to 144% of the
below the prerecession level in
August, 1957, and two points below the record high of February,

Joins Central States

Bur

1.3

industrial production rose one
1947-49
average,
one
point

schedules for March indicate

DALLAS, Tex.-—Elliott McClung
and Rufus A. McClung have
formed McClung Company, with
offices in the Cotton Exchange
Building, to engage in a securities
business.

1,306,133,570
1,230,000,000

—

following settlement of a major work stoppage. Production of
household durable goods changed little at near record rates. Auto
assemblies declined further, owing mainly to glass shortages, but

trict of Columbia."

ELLIOTT AUTOMATION LTD.
Bought- Sold—Quoted

'Jo

1938

1959

$14,096,285,374 $14,277,573,138

York

Chicago
Philadelphia

in¬

this

decision."

Form
For

Bank

curities.

Edward T. McCormick, Presi¬
on which
Commission's
enforcement pow¬
dent of the American Stock Ex¬
they are based, does not at all
ers; particularly in its injunctive
change, also declared: "I am
comprise insurance, essentially in activities
(as in giving it the priv¬
no
pleased indeed with the decision
way differing from what is
ilege of taking into account past
of the Supreme Court holding that
offered by the funds. And, in any
as well as present
matters).
certificates representing variable
event, the variable agitation con¬
Otherwise the most important
annuities are securities subject to
stitutes another of the important
reform suggestions are concerned
the jurisdiction of the Federal Se¬
manifestations of the broadening
with
amending the Investment curities and
interest (craze for) common stocks
Exchange Commis¬
income.

se¬

values of the securities

The

recent

follows:

certainly pleased that

are

company

The SEC's new lease on

demands

Week Ended March 21

"We

sion's activities into the investment

to the exclusion of fixed

„

GETTING AFTER THE
the United States Supreme Court
decision today affirms the New
York Stock Exchange's conviction

the concentration of the Commis¬

of year-ago levels.

for bank loans have also been sluggish
months, helping to limit the rise in total bank
credit. After an increase of roughly seasonal proportions during
the final months of 1953, business loans of weekly reporting banks
dropped by $1,119 million during the first eight weeks of 1959.
Only in the recession period of 1958 did such loans decline more
sharply at the start of a year."
%
"Business in Brief" concludes, "Meeting the credit needs of an
expanding economy will present difficult problems. But these
problems are not insoluble. The financial system in the past has
repeatedly demonstrated its ability to generate a large volume of
savings at high levels of income and employment.
The recent
performance of the market has helped to allay concern on that
score once
again. Moreover, a moderate further increase in the
money supply,
roughly in line with the growth in productive,
activity, need riot lay the basis for inflation.".
;
I
"Business

;

ADVISERS

Business Failures

Nationwide Bank Clearings Up 2.6%

with the way gradually
for this addition to the

STOCK ROAD

Industry

clearings this week will show an increase compared J
with, a year ago. Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the coun-"
try, indicate that for the week ended Saturday, March 21, clear¬
ings for all pities of the United States for which- it is possible to
obtain weekly clearirigs >vill be 2.6% above those of the corresponding werik last year.' Our prelhriinary tbtals. stand at $26,451,-;
590,668 against $25_,783,764,434 for the -same week in 1958. At this.
eeriter there is a loss for the week ending March 20 of 1,3 %. Our J
comparative summary at the principal anoney, centers was 1 as !

No doubt the difficulties will be

the

Auto Production

and

securities

and

bodies?

Food Price Index

dissension

supervisory control between

over

Cat-loadings
Retail Trade

Commodity Price Index

Approve Ruling on

guard
the interests of the in¬
vestor-policy holders. And will

resolved

commissions

pointed out as evidencing the
practicability of the dual system,
the anology runs off the track in
that both the securities regulators

Electric Outpui:

State of Trade

of determining
are
engaging in
deceptive practices

step now is
in connection with their business.
up to the insurance companies in
The Commission's pending pro¬
SIGNAL?
deciding
whether
they
will
The short interest on the New operate under the rules as pre¬ posals would (1) expand the basis
for disqualification of an appli¬
York Stock Exchange, as reported scribed under the existing statutes,
cant for registration or a regis¬
lor the month
ended March 13, or whether they will seek exemp¬
trant because of misconduct; (2)
showing a decrease of about 8%, tions or amendments. The inter¬
revise the provisions relating to
constituted its
ested companies, for their part,
the postponement of effectiveness
third
straight
feel that their going ahead will
and the withdrawal
of applica¬
monthly
depend on the degree of accom¬ tions for
registration; (3) author¬
decline,
and
modation which the Commission
ize the Commission to require the
now
stands
demonstrates.
"We
have
every
keeping of books and records and
38% below the
confidence that the SEC will make
the filing of reports; (4) permit
July 15, 1958
it livable," is the comment on the
periodic
examinations
of
total.
Such
dual
regulation
made
to
this books; (5) empower the Com¬
embracing
of
writer
by Jerome A. Newman, mission by rule to define and pre¬
man

ANOTHER DANGER

Steel Production

The

means

whether

fraudulent

Thursday, March 26, 1959

investing public.

of the

members

The

(1408)

Inc.,

E-Z ADDRESSING SERVICE

Washington St.

New York 6, N. Y.

HAnover 2-9492

page

Volume 189

Number 5832

The Commercial and Financial Chronicle

construction.

Virginia Electric and Power Co.
one

held.

distinguished public service
the occasion of its Fiftieth Anniversary.

Three First

same,

■

V.-Ps. Named: Directors

to-present hold¬
the .ratio.. of one

share for each 20 shares now
In
view of the excellent

new

of America's most

ers

Enterprise Economist

enterprises

part,

of common stock

By Dr. IRA U. COBLEIGII

A salute to

To finance this,
plan has been approved
to offer 710,000 additional shares
in

(1409)

growth in earning power and ris¬
ing dividend payments of VEPCO

over
the
years,
stock¬
Today's report is the by-prod-, car named Expire was VEPCO's
holders will presumably be eager
of
an
interesting
trip
to major customer.
to subscribe to
this new issue.
Since then the company has ex¬
Richmond, Va., where your cor¬
The
company
now
■ has, ? 37,000
respondent
was
a
panelist
on panded rapidly, broadly, and with
shareholders who own its., com¬
WXEX-TV.
a
nice balance of load demand
common

uct

program

was

residential,

among

industrial,

entitled

commercial and rural agricultural

"Stocks,

that

inflation

customers. VEPCO has developed
perhaps the best public relations
techniques in the business. Com¬
pany officials and employees take
an
active part in all community
activities
including
Community

boon

Chest

Bonds

and In¬

flation."
four
el

Our

man

pan¬

concluded
a

debtors

and

speculators;
m o

t h-a

boom

commerce and

long

bane

Electrically."
Ira

hundreds

Cobleigh

4-H

range

the

drives.

Cross

industry by

stressing its geographic advan¬
tages at the "Top of the South."
It has promoted agricultural de¬
mand by its slogan "Farm Better

ti¬

industry; but
a

Red

and

VEPCO has attracted

the-flame type
of

and

mon

The

welfare

citi¬

our

Clubs

has

conducted

demonstrations

for

and

sponsored Voca¬
tional Agriculture classes. VEPCO

zens, the strength of economy and

has worked hard

our

Government; and

Home program—a

the

continued

international

soundness

confidence

threat to

of,

and

in,

our

tivity of
promote

the Medallion

nationwide ac¬
the electric industry to
better wiring, lighting

preferred stocks.

Thir¬

teen thousand of these

(or .35% of
in the three

stockholders), live
state

service

ably,

area
and, presum¬
high percentage of these

Dennis

customers.

are

that has moved
continuously and ma¬
jestically, considerable credit must
be given to the competence, and
loyalty of employees. At the 1958
ahead

company

year-end

there

employees.
these

had

than

half

years

1,009

length of service

them

was

12 years.

Not

only does this bespeak a de¬
pendable
on-the-job
personnel,

but

indicates

that

employment,

conditions

salary

scales

and

retirement benefits must be creat¬

ing

McCarthy

and

Dennis

Presidents

Norman

The

First

City,

board

Paul

Macy

Boston

Corporation, 15 Broad Street, New
York

Miller

Macy, Paul L. Miller New York office in 1946. He was
H. McCarthy, Vice- elected a Vice-President in 1955.

elected

were

directors

the

annual

Mr. McCarthy joined First Bos¬
and

ton in San Francisco in 1931

in 1948
and

named Vice-President

was

Pacific

Coast Manager with
meeting of stockholders.
headquarters in San Francisco. He
Mr. Macy, who is in charge of
is a past President of both the
the corporation's U. S. Govern¬
San Francisco Bond Club and the
'

service;

than 20 years; and the aver¬

age

5,046 active

were

More
had

active

Norman L.

climate

ment

New

Securities
Department in
York, joined the corporation

in Boston in 1927 and in 1929

was

transferred to New York.

was

elected

Municipal
served

Bond

Club.

also

Chairman of the Cali¬

fornia Group, Investment Bankers
Association of America for the

Vice-President in 1945.

Mr.

Miller, a member of First
Underwriting
Depart¬
ment, joined the corporation in its
Boston's

1956-57

term, and is

past mem¬

ber of the National Board of Gov¬
ernors

of the IBA.

employee con¬
appliance use in homes; and
tentment and serenity.
a
home
displaying a Medallion
Richmond
is
a
beautiful
and
which have not as yet been de¬
Virginia
Electric
and
Power
progressive city, illuminated by Award has qualified in respect to
termined. ' This will be the last
shows up impressively when
hospitable Southern sunshine by the excellence (and safety) of its
bond financing by the Authority
viewed from the
standpoint of
day, and by Virginia Electric and total electric installations.
for the balance of this year.
All of these
Power Co. by night. Not only in
progressive sales operating efficiency. Coal fueled
The bonds will be tax exempt
have
paid
off
for steam generating stations are the
Richmond, but in a total of 22 approaches
as to interest from Federal income
source
of
electric
VEPCO at the cash register.
power
For main
cities, and in dozens of smaller
taxes and New York State income
1958 it took
towns
and communities VEPCO example, average annual residen¬ production; and in
Dillon, Read & Co. Inc., Halsey, tax, and will be legal investments
supplies 721,000 residential, com¬ tial use, in kilowatt-hours, for only 78 pounds of coal to produce a Stuart & ,Co. Inc.,
Kuhn, Loeb & under New York for insurance
mercial and industrial customers 1958 was 3,627, 8% above the na¬ kilowatt-hour against 1.15 pounds Co. and W. H. Morton & Co.
Inc., companies, banks and trust com¬
in 1945. Further, in 1958, VEPCO
with electric service, in an area tional average.
Average annual
joint managers of an underwriting panies, savings banks and certain
obtained some reduction in the
embracing 32,000 square miles in revenue per residential customer
group, announced today
(March trust funds.
Virginia, North Carolina and West in 1958 was $91.38, up from $87.40 average cost of its coal. This was 25) that negotiations are under
achieved by railroad freight rate
in the
preceding year. And in
Virginia. To serve this clientele,
way with the Power Authority of
VEPCO has 22 electric generating these days of
inflation VEPCO reductions, and elimination of the the State of New York for the
Stanley W. Widrick Opens
4c per ton Federal Transportation
customers
pay
an
plants with present total installed residential
(Special to The Financial Chronicle)
sale of approximately $200,000,000
Tax. As a result VEPCO bought
capacity of
1,738,000 kilowatts; average rate of only 2V2 cents
general revenue bonds, series F,
LONG BEACH, Calif.—Stanley
each
kilowatt-hour
and
against its coal 43c a ton cheaper — at looking to a
additional
units, scheduled for
public offering on or W. Widrick has opened offices in
2.9 cents for the same unit ten $9.17 per ton in' 1958. ; /
for completion in
about April 21, 1959. It is expected the Farmers & Merchants Build¬
1960, which will
boost total capacity to 2,200,000 years ago. This rate reduction, in
Virginia Electric and Power Co. that the offering will consist of
ing to engage in a securities busi¬
kw.
Further, there is the Caro¬ a period of generally rising costs, is a vast utility enterprise with term bonds due in the year 2006 ness. He was formerly with Demplines Virginia Nuclear Power As¬ is a substantial tribute to operat¬ two-thirds of a billion dollars in and serial bonds in
proportions sey-Tegeler & Co.
sociates, organized and owned by ing efficiency of Virginia Electric assets. It enjoys a fine name and
and Power.
VEPCO
and
three
other
great prestige in its tri-state serv¬
large
Last year was a quite dreary ice area, and its securities have
Southern
utilities, which plans
completion by 1962 of an atomic one for many corporations but the long been favorites among both
energy generating plant at Parr recession was scarcely noticeable institutional and individual inves¬
1959 EDITION
in the operating results at VEPCO. tors. The
Shoals, South Carolina. ♦
14,200,000 shares of com¬
revenues
attained an mon are listed on the NYSE and
While far less extensive in its Operating
all-time high of $139,660,000, 8%
now
sell at 39 with an indicated
service, the Gas
dollar.

and

$200 Million Bonds of
N. Y. Power

Authority

To Be Marketed

Department is
moving rapidly ahead serving, at
the end of 1958, 94,000 customers,
40,000 of whom used gas for home
heating.
Gas revenues for 1958
were

little

over

with
and
and

$11 million,

over

This

1957.

above

crease

same

in¬

carried right over into net,
balance for common stock

surplus totaling $23,537,000;
share net $1.66, up 13c
1958—and again 8% higher!

per

dividend
rent

of $1.10.

yield of
seem

may

remembered
VEPCO

While the

CANADIAN

cur¬

little less than 3%

bit

low, it must be
that the history of

common

replete

Common Stocks

with

On Which

dividend

increases;
there
have
If 1958 was a recession year, been stock
splits; and an attrac¬
In
50
years
Virginia Electric VEPCO took no note of it in
plan¬ tive subscription offer to buy new
and Power Co. has come a long
ning for future expansion.
Its shares below the market is now
way. Actually, 235 separate com¬ construction
expenditures
last in the offing.
panies
comprise
the
corporate year were a shade over $63 mil¬
Management under the guid¬
ancestry
of
VEPCO,
beginning lion, the largest outlay ever.
ance of Mr. Alfred H. McDowell,
with Appamattox Trustees, a com¬
In common with all dynamically
Jr., President, is highly competent
pany initiated by George Wash¬
growing utilities VEPCO has a
and widely respected; and on this
ington and James Madison to im¬
steady demand for capital funds
Fiftieth Anniversary of Virginia
prove and lengthen navigation on for
plant and service expansion.
Electric and Power Co., stock¬
the Appamattox River.
In com¬ Some of this
money comes from
mon
with
holders, present and prospective,
many
other electric retained
earnings, but a substan¬
should
utilities throughout the country,
appreciate
that VEPCO
tial amount must come from pub¬ common is an
the big early power demand for
equity of sustained
VEPCO was to run the trolleys. licly
issued securities.
In 1958 quality, and a becoming asset in
Richmond began, in 1888, the first VEPCO sold $25 million of first anyone's safe-deposit box.
about

of total gross

successful overhead

revenue.

electric

trol¬

ley line; and until 1925, the street

mortgage
company

bonds.

This

year

CONSECUTIVE CASH DIVIDENDS
Have Been Paid From

S to 130 Years
—

Willis H. Durst
Willis H. Durst,

cents each

•

orders
on

•'

200 up

printed

Vice-President
Inc., Los
away
suddenly

—

COST OF THESE BOOKLETS
1 to 199
f

the

will expend $53 million

20 PAGE BOOKLET

12 cents each

100

the front

more,

cover

your

firm's

name

will

with the words "Compliments Of"

above it without further charge.

of Wagenseller & Durst,

We have prepared a

study of

215 St. James St. N.

Request

Cor¬

Citizens Estate Building Corpo¬
has been formed with of¬

fices

Broadway

Royal Bank Bldg.

Victor 9-7095

WHitehall 4-8980

EMpire 4-6407

Securities

ration

American Stock Exchange

TORONTO

—

Durst

Form Citizens Estate

Montreal Stock Exchange

NEW YORK

Wire Connections

and

Commercial

Financial

Chronicle

Win. B. Dana Co., Publishers

Place, New York 7, N. Y.

25 Park

Please

MONTREAL

Direct

Mr.

also President of the Wagen¬

seller

MEMBERS

Exchange

Canadian Stock Exchange

of 66.

poration and held directorships in
many Pacific Coast firms.

CHARLES KING & CO,
Toronto Stock

age

vestment business for many years,
was

OF CANADA LTD.

passed

Durst, who had been in the in¬

FORD MOTOR CO.

Copies

Angeles,

March 18th at the

TORONTO, NEW YORK, MONTREAL

116

Officers

are

order

for

Firm

Name

.copies

"The

Kashi,

Vice-President,

Secretary and Treasurer.

Address

Canadian

accompanying dividend tables.

—

George

Chipouras, President, and Sas-

soon

our

Nassau

Street, New
York City, to engage in a securi¬
ties business.

enter

Common Stock Booklets," and

Date

The Commercial and Financial Chronicle

(1410)

needs

Slow Inflation: An Inescapable
Cost of Maximum Growth Rate
By SUMNER II
Lamont
Harvard

the

(3)

SLICIITER*

University Professor

by 334%,
force

My
my
parts.
to

will
wm

remarks
remarKS

the

point

nomic

into

live
five

first

place, I
briefly why

out

growth

second

fall
tail

needed.

which
of
of

desires

for

their

people

have

the

iu- i
ab

the prob¬
lem of achiev¬

vast

run

long-run
problem. In:

impact of
nomic

lies'
ICS

the

eco¬

level.

Sumner

the

other

Slickter

some
some

the

Possihiiity of

of
ot

rnnseouenres

consequences

creeping inflation.

vdiious

to be

movie

tCict'

^
miirh

The

Why Growth Is Needed

country in the world,

many
millions of familities
that must live very modestly; (2)
man is an aspiring being

because

who
is
constantly
raising
and
broadening the goals for which he
strives; (3) because growth means
opportunity for individuals, and
absence of growth means less op-

portunity;

and

because

live

deeply disturbed
world in which

and

security

(4)

demands

linttnm
Bottom

fifth 2
llltn/

win
rise

a
A

increase

enormous

for

durable

desire

101 example,
of

volume

(1)

...

The question of sound

„

dropped by

The

;

my boyhood
d a y s

Unemployed Young People

i"1

pr
consumer

that

families

must

The survey of

con-

seeking
to
start
their - careers ' soft mo nevj
Hence, unemployment is concert! Our country s
trated
where
it is
particularly ; financial hisharmful in limiting
opportunity/-'tory records

tor

xi.i /<?,

must

live

quite

simply.

(2)

young

(Partly

•••

Human

desires

aspiring
not

are

tne pnysicai

But

the

are

Modern
•A
the

constantly

di«tnrheH

largely as the result
advances, increased $44.6

statA

The strong desire of the people
more goods affects the
govern-

Jects

finances

the

because

government

sub-

strong

pressures for new and larger out-

hind

statement

Joint

Report,

Russians
The

military

government

badly

~July.
763.

is due
-

his

the

C.,

March

20,

1 Federal

Reserve

Bulletin,

July

761.

1958,

Investment

influential

;

convincing
and Sena-

bankers

>;
fi¬

con-

can

developing; a■;

welfare

im-

portantly affected by the slightest

snmp-

informed - ..and

clients:

:j *

in" debtvmanagement,, or
-v.:•..*

mqneta^control^
I.

often

are

hope jto give, here; some per¬

SSdtog-Se'tadgel '/=•

inflationary' effects

the

;

■

its

regain

did

mderr

in the

High

1951

ac-

praise

Federal

Treasury

wideiy held

both

the

make

United

States and abroad by persons who
have not thought through its imPhcations. Such a policy would

Reserve

19S8.

during

that

page

1956

All

males

Males 16-17 years of
age
Males 18-19 years of age
Males 20-24 years of age

4.3%

and monetary
Both : the Federal
the Treasury have

It has the responsibility for
appropriating funds and establishgress.

tax

Also

rates.

the

last

analysis it is the. Congress which
must

and

support

maintain

the

independence of the Federal Reserve

;

the performance of its

Important functions.

.Congress,

battle, such

you

their

not,

were

remain in

Members of

'know,

are

constituents.

they

office.-'To

could

help

not

ourselves

and

let r them

fiscal 1.860 1S a financial crossrocu^' ^i&ht here ana now a battle ;
is bein2 fought that will be of
far-reaching v^eqiiseqaence to:.ql^;

°f us'
-ba«!e is,taking
p.lace )vl.tuh little public appreciatL0!1 fj
Iw
;fn"g
\hl
nf
nnm"
nnur*f>

Jaf

ILw

1957

4.5%

1958

7.0%
13.9

G(?onPP!ic

worked

out

13.8

20.3

17.7

budget, the dangers of in¬

tain the independence of the Fed-

7.6

14.2

*An
the

126

address

Central

States

Mr.

McCabe

Investment

two

organizations

research
I

<dad to have had

before

Bankers

Convention, Chicago, ill., March is, 1959.

^ '

aL^e role^ The Commfttee for''
|ct^e ro e. I e
ife f 11
Brothers Soecial
e

studies

Gial

"ai

e r

Proiect

banel

which

Problems
has.

KeCome

RoGkefelSler
keen

Chairman

was

Economic and So-

drew

known

Report.

have

long

member 0f the CED's Re¬

Policy Committee
last two years has

in. the

completed

fundamental

several

Upv

arJ^nnLnHn^^ith

P°"Cy' from the Ford Foundation
grant They a,e sponsonng w.th

monetary commission
long-range

our

up,,

The

make

bal-

18.6

12.0

flation and the necessity to main-

1959

7.2%

15.5

think about

th?

nnnn

^ifn^matiorand ^

fpv ^nStions

•

danger-that v;
the current controversy over the Federal budget may. not be rec-"
dgnized as a major issue of sen-J
ous imP°rtance to this country.;,
The decision whether to balance ...
the budSet of the,United States in
are: There is grave

them

their decisions we should

know what
anced

of :.

battle to which I have referred,
rarely present themselves at the

which

36 bestir

Great/conflicts

time neatly ticketed for what they

search and

they

Waterloo, when

fought.

desires

„

11.8
7.7

closely attuned to the wants and

Near East. Hence, attempts make
Continued

fiscal

areas

be fully relied on to
policies effective in

joined- the President in a firm
stand in support of a balanced
budget. They deserve our support.
However, the final decision on the
budget will be made by the Con-

U1311 Russia, this country was
unwilhng to risk war over Europe

°r

can

sound

management.
Reserve and

ing

of recognizing the importance^ 01

Senator'Douglas defence of paigns/^or the Federal Reserve ;•
of Illinois public policy, like the Bryaii camstatesmanlike

the Near East- This conception
of American policy seems to be

-January-

Washington,

yocal- sand constructlv^-.p u bli'c'£
opinion^ Their business and the'-:):,

McCabe

Gf March

^MrtautthatThe

TABLE I

has many wants that

Dr. Slichter before
Committee
of
the
Economic

ques-

public

can
present
Congressmen

tors.
very

nendenee—and

Kussia makes it important that the
ecmiomic growth of the. United

growing.

1959.

the

being.
static.

pub-'I'

strong

sound

about

nancing
; facts
.

WpIU; infnrmpdand

fighting

was

iha

me disturbed state ot the

JY!lrWand the great cultural con-

man

-victions

our

well

credit.

the

bankers.','
Their wide experience in the se-*

people is, always ,high .times:become confused by the inbecause they have 7 not^tricacies; of , fiscal and'monetary

period

same

for

They

.ways t

and

money

segment of the

investment

than

and a"iong ;!'oung men 20 t0' 24-dollar and l>i^^ government: credit;Vmoves
nmnnir
rate among

of
no

informed

support : of a ha!- :

production, expressed
dollars, increased by $43.9

strength.

Man

better

flation

years of age "* was 12.S%.:. -VUnfortunately,.people are not
*
Tl
The linpmnlnvmpnt
unemployment

have 1

may

tions of debt management and in¬

nc lcxlili ai^ t/JC

: -

finances of last year showed
one-fifth
of
the
spending

families

can

lie

"o0'

curities market and

jiggf SSbtSS;;

UJ-

that

There is

-MM

•:

;

?,?a •
pames. a period of slow giowth oi the resulting
recessl°" tends to be concentrated f e a r o ft h e
am?"g th! you.ng1
who are people about ',

lays and subsidies and at the same
that
time stiffens the opposition of the require enormous increases.: in
units (groups of related persons people to tax increases. Between military
spending because the
living together who pool their the fiscal year 1955 and the pres- United States is already inferior
incomes) had incomes of less than ent fiscal year, there was an inmilitary strength to Russia. No
$1,890 before taxes, and three- crease of $1.76 in Federal expen- democracy can compete with the
fifths had incomes of less than ditures for every gain of a dollar Russian dictatorship in building
55,139 before taxes.i Only one out m cash receipts. This means that military might for the simple reaof five spending units had incomes the
government during the last f°.n t,hat,,no
democracy would
•of $7,910 or more. It is not difficult four years has been increasing its tolerate
the crushing tax rates
for a family to spend
$7,000 a spending almost twice as fast as that would be necessary to divert
year, or even $10,000. No luxuri- it
hasi been increasing its rev- mto military production a large
ous
living is required.
Hence, enues.
Less than one-fourth of enough proportion of the nation's
though America may be well off the rise in spending was for na- lfp0lirce^1 to match the Russian
in
comparison with other coun- tional security, and yet in this effort.
Furthermore, even when
tries, the vast majority of Ameri- period the United States fell beUnited States was stronger

sumer

controls

expansion

standard and

emP'oyment rate for the male cfevents. in

I
:

■■■■■■■■I: lower interest „ rates and greater

ment's

Millions

once

(

his sdyer

Thp unemnlovment that arcom
The unemployment that accom-

Reserve;
Strong forces are
more being exerted to subject the activities of the Federal
Reserve to certain limitations and

historically, a widelyRebated subject. Well do I recall
tjie
stir that -.William
Jennings
Bryan made

:a>in

'ii-i

era!

money

has Vbeen

billion, or a little more than the *Mates be rapid. The extent io 'epoch-making -struggle between
volume of physical production at wr\lcn ,the siat^u ^ *he worJd the Federal Reserve and the
1954 prices, and total personal in- ?lr'a,^s dernands_that the economy Treasury- '
^
•
comes increased by $58.1 billion, of the United States increase its
Fort„n'tplv
havG in Wash_
or considerably more than total output depends upon the nature cf
*oitunateiy «e have n wasn
physical production. Thus, men's 0UI
policy. The. demands
Treasurv and as
desire to live better is causing on oul economy can be either.Gf the Feder-il Reserve
men to increase their claims on enormous or relatively modest. •• ^"ma"
the output of the economy faster
Some people apparently expect Rill Martin ire outstanding and
than the economy has been raising the United States to be strong, dedicated public servants. I have
its output. Growth is needed to .enough to practice "brinkman- 'implicit faith in them and believe
help the economy meet the grow-.ship" for the purpose of, stopping that they and the personnel of
ing claims on its product.
•
Russian encroachments in Europe the Federal R e s er v e and the

our

strong.
live modestly.

■.

from increased production—not income; explains why inflation
is nonprescription for growth;
andpresents a nine-point
alternative plan to inflation capable of fostering real growth.

•

laborers dropped
by only
the prosperous decade of

•;

the ex-central bank head discusses limitations governing the
use of public
spending and deficits; states real growth comes

^^4=

of wage

has

rlnrnhlpi

goods iu 1937-as fami-

strong

billion.

Economic growth is needed (1)
because the United States, though

competitive

number

laborers in the country

diminishing for over "40
but the rate of decrease has
In the depressed decade

defense outlays, and that Federal spending alone conducive to

growth has increased five-fold since 1950 and close to three¬
fold since 1955. Though similarly desirous of economic growth,
j

In J?nuary- 1959' the average urn'-innumerable

labor income,

richest

The

goods.

in 1954

the

laborer.

growth.

class

27.3%.

production and incomes would

The

fourth place, I
wish "to discuss

brieflv
oneiiy

far
most

various

trip,

the

Mr. McCabe points out we have had increases in
:* governmental
outlays in excessofv 5%, particularly non-

been

9.1 ^

tools for the home

out

'fa*'

important

'r-rt

the restoration of our central bank's independence,
^denies inflationary means are needed r to foster, economic

technicians

and

rise

men

common

strong

soon

princ'PaI

of the thirties the number of male

are

iniUQ

varied.

Men,

But

mind
a

the
me

demand

price
In

in
m

mean

growth

the

vnrietv

consumer

wish

discuss

timPQ

third

place,

if ;
**

tff ^.latest thesis in defense of
creeping inflation,

=t^t=I^lpS&S &U3KWmrnm

problem from
the

the

that

pool'

ming

distinguishing
-

them.

means

afford

camera,

growth,

the short

things

^d thei;^- Without having had the benefit of reading Dr. Sumner Slichter's

of the thir¬

the forties the number

work up

things that they hope

dis¬

common

years,

related to the

satisfying

beyond

By THOMAS B. MCCABE*

President,.Scott Paper Company, Chester, Pa.
Former ,Chairman, Board of Governors, Federal Reserve System

common

has

could not dream of

do not

eeo-

cuss

ing

ruIe

wish

nlace
place,

I wish to

Expand Economic Growth

,:;:r. vr

24.2%, but in the prosperous decade of the forties
professional and technical workers *>
increased by 35.4%.
The rate of "v
growth determines the vrate at

opportunities, and investments determine savings.

are

workers

increased

ments, prevent rising labor costs from destroying investment

man

ties, the number of male proies-"

goods out of foreign markets, or lead to gal¬
loping inflation. In fact, he avers, inflation encourages invest¬

Wants

1930.

similarly affected.i In ^

were

sional

our

aoth^partedf

the depressed decade

product. Though appalled by tendency for our desire for goods
cause money incomes to outrun
physical increase in pro¬
duction, the writer notes, however, that creeping inflation need

primitive

than

postwar boom, and the numbdr

chance

1940

the period of the war

was

currently persistent unemployment and provide growth

having.

The Alternative to Inflation

opportunity.V

means

The next decade from 1940 to 1950

needed to help the economy meet the growing claims on its

Introduction

craftsmen

University, Cambridge, Mass.

The economist also recommends several billion dollar

price

Growth

in,
it /

1930 and 1940, the eoun-/ J
had a deep and prolonged,
depression. As a result, the courttry had 1.2% fewer skilled male

deficit financing in 1960's fiscal cash budget, easing of Fed's
credit restraint, and modest, but widespread, wage increase,
as short-run measures to
help increase consumer expenditures,

not:

to ,'give

try

Joseph Scanlon plan to thwart labor's inflationary de¬

ease

growth

Between

problem of reconciling economic growth and
stability, the impact, prevention and consequences of rising
prices, Professor Slichter blames labor for price inflation.
He recommends using increased foreign competition and the
mands.

rate

in order
larger incomes to tax.

In analyzing the

late

faster

economy

Thursday, March 26, 1959

country's

and

basic study

fiscal

monetary problems.
eminent trustees

credit

and

Many of the
CED

and the

panelists Who participated in the

Rockefeller Report

came

from the

)

Volume 189

Number 5832

Midwest region.
am

Poses

there

Most of them, I

Today's Vital

(1)

Can ,we

historic

our

From

Issues
us

today

satisfied

Washington

;

annual

•,/

statement

on
_

the

sary to meet our economic and
social needs and aspirations? C'

vitality responsible for

our

point

one

Russians did

which

at '*•

reached

with
up

the

all

With this sort of agreement the

willing

are

said not to want to have

of these arms anyhow; As
presently constituted
the West
■Germans simply want to manufacture and to compete in world
markets. It is with difficulty that
.

can
•

the

gobbling

any.

agreement

force

any

Germany.

mans

to be

seems

exercise

eventually would ^ be
withdraw from GerA many and not give West Germany
any atomic arms. The West Ger-

this

Yet

coun-

try's past growth.
There was a
V spirit impatient of limits, historic'
or
otherwise, and .our panelists
thought we should approach the
future in the same spirit. I should
like to make it. very clear, here,
that the Rockefeller Report which

•

e r

without
voting in East
Germany. A

The Rockefeller Report emphasized ^ the optimism and dynamic

many

see
not

summit

of this

MacMillan's

meeting. As

fact, it

circumstances

any

Americans

mention

says that under
will the Amer¬

icans leave Germany.
This would seem to

the Americans would

that the

intention

•

and

many,

meetings of Prime Minister Macsociety should government millan and President Eisenhower
participate?
left no room for an agreement on '<»
V (3) Finally, must we adopt inthe reunifica- "
flation as a national policy neces-tion

'*■

de¬

has been widely but wrongly in¬

terpreted

as a

conference.
We
been

recommendation for

such agreement

above.

preclude
mentioned

have/
j

insistent /f

hard spending, and soft money, is
neither. It recommended economic

growth with economic stability
and it noted repeatedly that real
growth could come only from real

being satisfied that/they? would
overwhelmingly in favor of
it.
But Kruschev has
remained

vote

incomes, real production and real

many advocating
in the sun again.

To this I would

add the

and of course East Germany

) We are hearing a lot these days
a very vocal group of peo¬
ple who claim that Government

missile which could reach Rus¬

sia.

But

do have Russia ringed

around with bases from which
can

devastation upon the enemy coun¬

tions with East Germany which
she occupied under agreement

communized them. Poland, after
all, was one of our allies during
the war.
Mikoyan, the number two
course

of his visit to this

man

coun-

Clark, Dodge to
Admit David
&

McElroy to partnership. Mr. Mc¬
Elroy is a Vice-President of J. P.
Morgan & Co. Incorporated in
charge of the Municipal
Bond
Department.

With Bennett & Co.
(Special to The Financial Chronicle) \

This would take the Rus-

HOLLYWOOD, Cal.—Milton C.

sian troops back behind her borders and send the United States

Miller, Jr. has become associated
with Bennett & Co., 6253 Holly¬
wood Boulevard. He was formerly

troops out of Europe. This, at first
blush, looks like a happy solution
to the whole thing. But for us to
get v out
of
Europe
altogether
would

mean

missile

with Atlas Securities, Inc. and H.
Carroll & Co.

the dismantlement of

bases

Spain,

Iran.

Thus

we
.

would
.

A. G. Becker Adds

France,

(Special to The Financial Chronicle)

Turkey and Greece and possibly
the

CHICAGO,

111.—John

°* Russla 111 any atomic at-

tack.

Becker

Co., Incorpo¬

These missile bases are our in¬ rated, 120 South La Salle Street,
members of the New York and
surance against such an attack.
High military authorities do not Pacific Coast Stock Exchanges.

That is

annual rate of economic

■—-

:?■'vi 4 / r? c;//

LA*

doing its part in creating the con¬
ditions for rapid and continuous
economic growth. This group has
taken 5% as its magic number.

NOT A NEW

March 25, 1959

ISSUE

growth averaging 5%. They are
creating the impression that
by opening wider the
money spigots in Washington, we
can spend ourselves rich and can
easily boost the trend line of eco¬
nomic growth from its historic 3
or 4% path to a 5% incline. I do
not quarrel with the suggestion
that
very
great benefits would
Sow to all of us from a higher
rate of economic expansion than
we have normally had.
1
But
I
would
emphasize that

1,800,000 Shares

merely

;

Atlantic & Pacific Tea
*

■'

-/''

*,»*

v'.r

(Par Value Si)

■•"2

increase

They assert,

their

proposals

growth

Price

if I interpret
correctly, that a
of dollar incomes

This "announcement constitutes neither

The

..."

the

new

level

true value

seems

of the

that the

dollars.

an offer to sell nor a solicitation of an offer to buy these securities.
offer'is made only by the Prospectus, copies of which maybe obtained from the undersigned only in such States as the undersigned may legally offer these securities
in
compliance with the securities laws of such States.
.

line up to the
regardless of

growth

real

desired

$44.50 per Share

would somehow automatically pry
6ur

economic growth

our

rate.

rapid

Company, Inc.

Common Stock

irrespective of the desirability of
doing so", it is not easy to achieve
a
significantly • higher -sustained
growth rate than our economy has
historically experienced.
It appears to me that the pro¬
ponents of spending claim that
our
Government- is
not
doing
enough and could easily do more

proponents

ofihis philosophy are asking that
dollar incomes be increased out
of all proportion to increases in
productivity in the hope that the
apparent increase in total dollar

Morgan Stanley & Co.

Smith, Barney 8C Co.

Kuhn, Loeb & Co.

Carl M. Loeb, Rhoades 8C Co.

incomes will increase demand and

that

greater production will nec¬
essarily follow.
They ignore the
often-estab¬
,

lished
come

that

fact
out

increases

proportion

in¬

Why

However,

let's

Picayune
for

assume

the

sake of discussion, that higher in-

Continued

page

Corporation

Harriman Ripley 8C Co.
Incorporated

•

Eastman

Dillon, Union Securities & Co.

Kidder, Peabody 8C Co.

Blyth & Co., Inc.

Goldman, Sachs 8C Co.

Lazard Freres & Co.

(

Glore, Forgan & Co.

pro¬

ductivity, result in higher prices,
which
reduce
the
purchasing
power
of the dollars in which
the incomes are paid.
Asks

The First Boston

Merrill

Lynch, Pierce, Fenner & Smith

Stone 8C Webster Securities

Corporation

White, Weld & Co.

Incorporated

Dean Witter & Co.

Van-

dercar has been added to the staff

tl
1

Exchange,

April 2nd will admit David B.

would pull back their troops 500
miles.

Dodge

of the New York Stock
on

informally about an
whereby both
sides

try spoke
agreement

McElroy

Co., 61 Wall
Street, New York City, members
Clark,

from

in the United States has not been

our

take off armed with

atomic bombs and rein death and

well as Austria.^ She did so on
the grounds that it was necessary
to protect heii line of communica-

the

adamant

CED's study on infla¬
tion that we give up the illusion
that we can get more out of the
appeal

coun¬

Germany s place jin the Russian government, during

j Russia
is said to be terribly
against elections. Thus,: afraid of this and perhaps with
Secretary of State Dulles is said justification. But under this plan,
to have decided there could be as it has been discussed in Washreunification without elections. In ington, we would be glad to guareconomy that we produce."
Evi¬
other words, East Germany could antee
the integrity of Russia's
dently
Nelson
Rockefeller,
as;
just be incorporated into a Ger- borders.
Governor of New York, is prac¬
man federation as another
state, / ^t least this has been discussed
ticing what was preached in the
There are five states in West Gerin Washington as a means of getRockefeller Report. He is showing
many now. There used to be about ting a settlement with Russia and
commendable
courage
and
de¬
as many in East Germany but the
easing the cold war. There is no
termination in leading the fight,
Communists have erased all state
question of ending it. As long as
to balance his state's budget with¬
lines.
there is a Communist Russia it is
out sacrificing the benefits which
With East Germany becoming; assumed there will be some sort
the public is demanding.
In es¬
sence,
he says—have it, if you just5 another state it would be left of cold war. Russia has created
to the Germans to work*out their ^tensions in Quemoy, Korea and
will, but pay for it as you go. I
own
salvation.
This would in- the Middle East, but it is in Berlin
hope the Congress and the gov¬
volve the complete withdrawal ofV that the free world and the Comernors of other states, will fol¬
Russian troops from East Ger- munist world meet head on and
low his example. ;
./•

benefits.

yet have

■ •
the possibility try.
Russia would not be hard to
remains that the two heads of
state wanted to keep this to spring deal with if they were convinced
of our superiority.
But unfortu¬
at the summit conference,
One of Russia's main aims, aside nately we have those in this coun¬
from domination of the world, is try who are forever prating about
to §et us to recognize the status our inadequacy of defense. This
quo in Eastern Europe. After the may cause the Russians to be
war. Russia took over Rumania, more stubborn than otherwise
Bulgaria,, Czechoslovakia, Poland would be the case.

'.; getting them to rearm. 7 with the western Allies.Thisas the way matters stand un-„
Over the years she has defider Chancellor Adenauer.
nitely seized these countries and

-/ However, he is a very old man
Carlisle Bargeron
that the East
.-and can't live forever. It is pos■i;
;
' ■.* l
sible that after his death another
Germans be
allowed to vote on reunification, strong man would arise in Ger-

Russians

However,

are

hereto fore

the

try, notwithstanding Russia's
bragging, and we apparently have

bombers

■

i we

believe

missile that could reach this

matter of

By CARLISLE BARGERON
official

The

free

crises

the statement of Mr.

of the News

rate

v
(2) What is to be the role of
Government in economic growth?"
How and within what limits in a

;;

acute

and Mr. Eisenhower's
a

Ahead

with

of economic growth?

most

/There is

the

velop.

are, as I see them:
-

(1411)

well known.

sure, are

The vital issues before

;

The Commercial and Financial Chronicle

•

Hornblower & Weeks

Paine, Webber, Jackson 8C Curtis

The Commercial and

(1412)

American Sterilizer Co.

—

Memorandum

Dealer-Broker Investment
It is understood that the firms mentioned will he
pleased
to send interested parties the

following literature:

Atomic Letter No. 46—Current comments

recent atomic and

nuclear

developments including government plutonium re¬
quirements — Atomic Development Securities Co., Inc., 1033
Thirtieth

Street, N. W.* Washington 7, D. C.
Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

BurnhAm View

—

able is current Foreign Letter.
Cement Industry — Analysis — Laird,

Bissell & Meeds, 120
Broadway, New York 5, N. Y. Also available is an analysis
of Grumman Aircraft Engineering Corporation.

College and University Endowment Funds, 1958—Comprehen¬
sive study—Boston Fund, Inc., Ill Devonshire
Street, Boston

9, Mass.
Credit and Currency in Canada

Analysis — E. M. Saunders
Limited, 55 Yonge Street, Toronto 1, Ont., Canada.
— Bulletin
Park, Ryan, Inc., 70 Pine
Street, New York 5, N. Y.
Investing in Canada—Monthly bulletin on Canadian securities
—Wisener and Company, Ltd., 73 King
Street, West, Toronto
1, Ont., Canada.
—

Government Financing

North

Central

Avenue, Phoenix, Ariz.
Memorandum on Cal-Ray Bakeries, Inc.

Yamaichi Securities

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

considered favorites for 1959 and data
Mitsubishi Shoji and Marubeni-Iida.
Midwest Stock Exchange—Discussion of

market—Midwest

Stock

Daiichi

Bussan,

major factors making
Exchange, 120 South La Salle

Street, Chicago 3, 111.
Municipal Bond Market Indicators—Bulletin—Eastman Dillon,
Union Securities & Co., 15 Broad
Street, New York 5, N. Y.
Natural Gas Transmission

Industry—Analysis—E. F. Hutton

Company, 61 Broadway, New York 6, N. Y.
Over-the-Counter Index—Folder showing an
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

and market performance
National Quotation Bureau,
4, N

Averages, both

as to
20-year period —
Inc., 46 Front Street, New York

yield

over

Overlooked

Values—List

issues which

appear

attractively

priced—Bache & Co., 36 Wall Street, New York 5, N. Y.
Taxation in Canada—Survey of
major Canadian taxes affecting
business or personal interests in "Your Guide to
Business in
Canada"—Bank of Montreal, Business

Development Depart¬
ment, Montreal, or 64 Wall Street, New York 5, N. Y.
Ten Attractive Rails—List considered
interesting by the firm
—Peter P. McDermott &
Co., 42 Broadway, New York 4, N. Y.

Toronto Stock

Exchange—Monthly Bulletin of essential trading
data on all issues listed—Toronto
Stock Exchange, Dept.
E-3800, 234 Bay Street, Toronto, Canada.
Treasury Financing—Bulletin—New York Hanseatic
Corpora¬
tion, 120 Broadway, New York 5, N. Y.
American Express Co.

Canada

Memorandum
Goodbody & Co., 115
Broadway, New York 6, N. Y.
Marietta—Analysis—Hill Richards & Co., 621 South
Spring Street, Los Angeles 14, Calif.
Metal

—

Climax—Analysis—Dean

Witter

are

memoranda

Co.,

Also available
American Viscose and U. S. Rubber.

Motors—Data—du

Pont,

Milk

Homsey &

Company,

Street, Boston 9, Mass. Also in the same circular are
American Petrofina, Avco,
Harbison-Walker Refrac¬
tories, Spencer Shoe, Eaton
Manufacturing and Eastern Gas
data

April 1-3, 1959 (San Antonio,Tex.)
Texas Group of Investment
Bankers Association of Amer¬
ica annual meeting at the Hilton
Hotel.

April 3, 1959

Cement—Brief

sociation

Apr.

April
St.

New

King & Co.,

Oil

(Minneapolis-St.
Paul, Minn.)

Bear

44 Wall

Carl M.

(Ilyannis, Mass.)
Consumers Bankers Association

Ohio

Atlantic

Co.

—

Aug. 9-21, 1959

Co.,

School

Municipal Bond Dealers Group
Cincinnati annual outing —
cocktail and dinner party Thurs¬
day at Queen City Club; field
day, Friday, Kenwood Country

Shields & Company,

Club.

Street, New York 5, N. Y.
Inc.—Report—Thomson

Sept. 23-25, 1959 (Milwaukee,
Wis.)

McKinnon,

—

Annual report

—

National

Tilo Roofing

Trading Markets

Sept. 28-29,

& Stone, 120 Broad¬

Rubber—Data—Herbert E. Stern & Co., 52 Wall
Street,
5, N. Y. Also in the same circuar are data on
Fedders Corporation.

(Toronto,
Stock

Exchange

First Board of Governors meet¬

Oct.

14-17,

1959

(Philadelphia,

Pa.)

Consumers Bankers Association
\

39th

annual

convention

the

Warwick Hotel.
Oct. 22, 1959

(Cincinnati, Ohio)
Group of Investment
Bankers Association annual fall

(a) Operating Utilities

Ohio

Bank

ing at the Royal York Hotel.

Refractories and American Hoist & Derrick.

1959

Association

Company—Analysis—Strauss, Ginberg &
Co., Inc., 115 Broadway, New York 6, N. Y. Also available
are bulletins on Trico
Products, Pfaudler Permutit Co., Fort
Pitt Bridge Works, National Food
Products, North American

(b) Natural Gas Companies
Transmission, Production

Canada)

New York 5, N. Y.

Van Camp Sea Food

in-

Association

Women 37th annual convention.

New York

Firm

Banking,

Sept. 17-18,1959 (Cincinnati, Ohio)

Oppenheimer & Co., 25
—

Unilever—Memorandum—Model, Roland
U.

Consumer

University of Virginia.

Broadway, New York 4, N. Y.

way,

(Charlottesville,

Va.)

Haupt &

of
—

Memorandum

Roofing Company, Inc.

States Sectional meet¬

ing, Wianno Club.

Oil

Company, Inc., Stratford, Conn.

& Fuel.

Lake, Minn, (preceded by

June 25-27, 1959

Memorandum

Texas Gulf Sulphur Co.,

Tilo

38th

cocktail party June 17 at the
Nicollet Hotel, Minneapolis).

Street, New York 4, N. Y.

Stauffer Chemical

Club

Bond

picnic

—

Cities

and outing
at
White Bear Yacht Club, White

Beaunit Mills.

Siemens & Iialske

(Philadelphia, Pa.)
Traders Association

Philadelphia Summer outing
Country Club.

Twin

Timber—Memorandum—Schweickart &
Co., 29 Broadway, New York 6, N. Y. Also available is a

report

New

June 18, 1959

Saunders,

Company, Findlay, Ohio.

Pulp

Club

outing at West-

—

Company—71st annual report—Secretary,

Sound

at the Overbrook

Co., Terminal Tower, Cleveland 13, Ohio.
Corporation—Study—Robert H. Huff & Co., 210

Pittsburgh Plate Glass Company—Review—Ira
Ill Broadway, New York
6, N. Y.
Puget

12, 1959

Investment

Loeb, Rhoades & Co., 42 Wall Street, New York 5, N. Y.
Analysis — Halle & Stieglitz, 52 Wall
Street, New York 5, N. Y.

Ohio

(New York City)

Bond

Summer

annual

—

Club

Chester Country Club.

June

Street, N. W., Washington 5, D. C.

Northern Illinois Gas

12, 1959

Municipal
York

Broadway, New York 5, N. Y. Also in the same circular
are data on Singer Manufacturing Co.
Metropolitan Broadcasting Corp.—Memorandum—Weil & Co.,

West Seventh Street, Los Angeles 14, Calif.
New York Capital Fund of Canada, Ltd. —
Report

(Baltimore, Md.)

ing at the Pfister Hotel.
June

120

Stiver &

dinner

Firms Board of Governors meet¬

9, Mass.
Also
available are memoranda on Laboratory for Electronics, Inc.,
Mine Safety Appliances Co. and Ogden Corp.
Kennecott Copper
Corp.—Memorandum—Green, Ellis & An¬
derson, 61 Broadway, New York 6, N. Y.
Lykes Bros. Steamship Co.—Data—Oppenheirmer, Neu & Co.,

Nationwide

annual

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

Schirmer, At-

—

23rd

Waldorf-Astoria.

May 19-20, 1959 (Omaha, Neb.)
Nebraska
Investment
Bankers
Association annual field day.

—

Memorandum

York

the

outing at Country
Maryland.

Analysis — Shearson,
Hammill & Co., 14 Wall Street ,New York 5, N. Y.

—

(St.

Baltimore Security Traders As¬
sociation
24th
annual
Spring

City Bank Building, Cleveland 14, Ohio.

734 Fifteenth

1959

Municipal
Dealers
annual spring party at
Country Club.

May 15, 1959

Jefferson Standard Life Insurance Company — Bulletin — Blair
& Co. Incorporated, 20 Broad Street, New York
5, N. Y.
Jim Walter Corp. — Memorandum — Prescott &
Co., National

National Old Line Insurance Co.

Mo.)

Louis

Shaine

Jones & Laughlin Steel Corp. — Memorandum —
herton & Co., 50 Congress Street, Boston

dinner at the King

Hotel.

May 1, 1959 (New York City)
Security Traders Association of

Corporation

(Toronto, Canada)
Traders Associa¬

29-30-May

Group

& Co.,
McKay Tower, Grand Rapids, Mich.
Gyrodync Company of America, Inc.—Analysis-^-Fahnestock &
Co., 65 Broadway, New York 6, N. Y.

Jones & Laughlin Steel

dinner

the Sunset

Co., 120 Broadway, New York 5, N. Y.
Continental Casualty! Company — Analysis — William Blair &
Company, 135 South La Salle Street, Chicago 3, 111.
Cross Co.—Memorandum—A. C. Allyn & Co., 122 South La

annual

Bond

Louis,

New York 4, N. Y. Also in the same circular is an
analysis of National Distillers & Chemical Corp.
Consolidated Foods Corporation — Analysis — Harris, Upham &

Laboratories Ltd.—Memorandum—H.

1959

Edward

way,

Broadway, New York 6, N. Y.

33rd

tion annual

Commonwealth Edison Co.—Analysis—Purcell & Co., 50 Broad¬

10,

Toronto

Salle Street, Chicago 3, 111.
Motor Co. of Canada Ltd.—Study—Charles

(New York City)
Security Dealers As¬

at the Waldorf-Astoria.

Securities

Ford

Field

Investment

New York

American Brake Shoe Company.

Broad

EVENTS

Analysis—Ross, Knowles & Co. Ltd.,
Street, West, Toronto, Ont., Canada.
Co.—Bulletin—Laird, Bissell & Meeds,
120 Broadway, New York 5, N.
Y.^
Clark Equipment Company—Analysis—Bacon, Whipple & Co.,
135 South La Salle Street, Chicago 3, 111.
Cluctt, Pcabody & Co., Inc.—Analysis—Reynolds & Co., 120
Broadway, New York 5, N. Y. Also available is a report on

—

Montgomery Street, San Francisco 6, Calif.
American

25 Adelaide

Christiana

American

Ltd.,

Brosius.

Glaxo

Industry — Survey — Nomura Securities
Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the same
monthly report are discussions of the 10 Japanese stocks

this

Group

Thursday, March 26, 1959

COMING

Co., 236-240
Also available is a

R.—Review—Alfred L. Vanden
Broeck & Co., 55 Liberty Street, New York 5, N. Y.
Birdsboro Steel— Memorandum —Philadelphia Securities Co.,
1526 Chestnut Street, Philadelphia 2, Pa.
II. C. Bohack Company — Discussion in the April issue of
American Investor—American Stock Exchange Investor, 86
Trinity Place, New York 6, N. Y.—$1.00 per year (15 cents
per copy).
Also in the same issue are articles on United
Elastic,
Electronics,
International
Breweries and
Salem

New York.

Japanese

Ohio.

—

Japanese Stocks—Current Information

Arden Farms Co.—Memorandum—Kenneth Ellis &

Beecham

Recommendations & Literature

Fulton Reid & Co.,

—

Union Commerce Building, Cleveland 14,

Financial Chronicle

meeting.

NSTA

Nov. 2-5, 1959

(Boca Raton, Fla.)

National Security Traders Asso¬
ciation Annual Convention

Notes

the Boca Raton Club.

Distribution
With Keller Brothers

(Special to The financial Cehonicle)

INVESTMENT TRADERS ASSOCIATION OF
PIIILADELPHLA

Troster, Singer & Co.

Members New York
Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype NY 376; 377; 378

Country

Club, Radnor Township, Pa.
BALTIMORE

BOSTON, Mass.

The Investment Traders Association of
Philadelphia will hold
their Summer Outing on June
12, 1959 at the Overbrook

The

SECURITY

Baltimore

24th Annual Spring
Club of Maryland.
John

TRADERS

Yeager,

Co., Inc., Zero Court Street.

J. C. Roberts Adds

ASSOCIATION

(Special to The financial Chronicle)

SPRINGFIELD,
D.

Baker,

Watts

Co.,

Chairman

Maxwell

staff of Keller Brothers Securities

Security Traders Association will hold their
Outing on Friday, May 15, 1959 at the Country

Entertainment Committee.

—

Rosenbaum has been added to the

of. the,

Mass.—Harold

Ranger has been added to the

staff

Third

Jay

National

& Co.,
Building.

Roberts

Bank

Volume

189

Number 5832

The Commercial and Financial Chronicle

(1413)

Solving Cnrrent and Future
Canadian-United States Problems
By DAVID L. GROVE*

Vice-President, Bank
San

This announcement is neither

some

America,

push overindustrialization at the

attempt to

though there

can

■■7

to lack

interest

control

and

management

of the securities.

7-7

March 25, 1959

Miami Window

of well

expense

$3,500,000 '

(a Florida

77" .7.

Corporation

Corporation)

economy

Fifteen year O'/fe%

make it the most important objective as
be immunization from business fluctuations

abroad; and (3) objections

any

N. T. & S. A.

Francisco, Calif.

balanced economic growth throughout the Canadian

solicitation of offers to buy,

nor a

offering is made only by the Prospectus,

NEW ISSUE

Among the problems squarely faced concerning one or the
other, or both, northern hemispheric partners are: (1) fallacy
of oil quota, tariff and surplus disposal practices;
(2) desire

offer to sell,

The

Sinking Fund Debentures v7;

With detachable Common Stock Purchase Warrants ;

of Canadian ownership
over U. S. enterprises

Dated March I, 1959

.77,,„/•

...LDue March. 1, 1974

located there,

and to complications caused by our flow of
during- periods of Canadian monetary restraint.
Mr. Grove provides an insight into these problems, distin¬

These Debentures

investments

guishes between those that
calls for

7 The

economic

tween

United States

relationships be¬

our

19%

nations.

richly endowed with natural

re¬

awed

arc

re¬

Canada

sources

are

sources

of Canada and the United

and

Last year, some

importance to

tremendous

both

serious and superficial, and

future importance.

current and

are

closer consultation and collaboration in matters

arc entitled to an annual
Sinking Fund as set forth in ,the Prospectus.
redeem able other than for Sinking Fund at \05}4% phis accrued interest, on or
before February 29, 1960, with successive reductions in price thereafter, and for Sinking
Fund at 100% plus accrued interest. Warrants entitle the holders to purchase 100 shares
of Common Stock for each $500 principal amount of Debentures at $3.50 per share,
through March I, 1964, and at $5.00 per share thereafter through March 1, 1969, the
expiration date.
'' .",7, 7
7 7
■

They

by the vast

Price 100% Plus Accrued Interest

States
and
by their fortuitous
proximity to each other's centers

exports and

approximately

Hardly

21%

imports
by

were

the

for

this

people

capital

trade

investment

from the other

flow

side

economic

border,

the

exports

than

vate U.
year

one-third

JL.

in Canada.

countries

rising
United
ment

These mag¬

future.

national

trade

With

income

Canadian-

and

invest¬

be expected to grow and

diversified

becomes

dustrialized.
both

the

States

Canada

increasingly

in¬

businessmen

countries, this will mean
larger opportunities for mu¬

ever

tual trade and investment.
To say no more

than this, how¬

recognize

the as¬
should
Canada's
heavy

that

dependence

the United States,

customer and

sup¬

plier of capital, does create

spe¬

stresses

cial

and

strains.

Devel¬

opments
which
are
of
rather
minor
significance
to
business
in

conditions

United

States

of major significance

may

the

business conditions in Canada. No

useful

served
by ignoring the problems and by
assuming that somehow every¬
thing will work out happily for
all

concerned.

ber

would

purpose

There are

num¬

that must be at¬
forthrightly; if they are

of problems

tacked

not, they may give rise to des¬
perate actions that/could harm
both
countries.
Not all of the
issues
can

germane

to these problems
and those
up will unavoid¬

discussed here,

that

taken

are

economic
our

such

trol

The
a

reality
"An

about

address

Canadian-United
ference,

it.

Countries

less

Mr. Grove before the
States
Business
Con¬

Ottawa, Canada

Aetna Securities Corporation

they

are

Howard, Weil, Labouisse, Friedrichs and Company

Baker, Simonds & Co., Inc.

Beil & Ilough,

T. C. Henderson & Co., Inc.

Oscar E. Dooly & Co.

Inc.

Walston & Co., Inc.

Vcrcoe & Co.

Berwyn T. Moore & Company, Inc.

good will and

well-being that lies
Fortunately,
Canadian

McDaniel Lewis & Co,

The Phelps Company

Mullaney, Wells & Company

Erwin & Co., Inc.'

Sweney Cartwright & Co.

attitudes

ownership and

Canadian

solution.

lems,

con¬

subsidiaries,

Zuckerman, Smith & Co.

Mann and Gould

Gallagher-Roach & Co.

More fundamental prob¬

involving the

processes

economic growth and the vulner¬

ability of the

Canadian

to U. S. economic

economy

fluctuations,

This announcement is neither

are

Let

first

take

general subject
velopment

beyond Canada

broader

look

solicitation oj offers to buy, any of these securities,

nor a

offering is muds only by the Prospectus.
March

NEW ISSUE

de¬

25, 1959

the

Economic

offer to sell,

The

formidable.

150,000 Shares

in relation to interna¬

•

•.

T•'

•

■'

...

■

.!••.. "777

tional trade.

Most
two

developing countries
objectives in diversified

nomic

development:
pendence upon the

few

(1)

less

see

Miami Window

eco¬

de¬

export of a
materials which are vul¬

raw

abroad, and
(2) rising levels of living pro¬
vided by the greater productivity
associated with the development

process.

($8.00 Par Value)

These shares

Common Stock

the basic rate of V/i shares of Common Stock for

and

are

redeemable

entitled

$10.70

to an

per

annual purchase fund

as set

share plus accrued dividends.

tuations

abroad.

diversification

trialization

real

raise

into

still

and

enjoy a rising
living. This can be
accomplished by improved equip¬
ment
and techniques
which in¬
crease
productivity.
But
this
ordinarily does not reduce a coun¬
try's exposure to business fluc¬

hand,

convertible

forth in the Prospectus,

country can specialize in the
production and export of raw ma¬
terials

are

each share of Convertible Preferred Stock. They are

standard

Corporation

7(F Cumulative Convertible Preferred Stock

to recessions

nerable

not

incomes

the

Price $10.00 per

Copies of the Prospectus may

other

may

be obtained from such of the undersigned

lawfully offer the securities in this state.

and indus¬
necessarily
above

what

Cruttenden, Podesta & Co.

attainable

by more in¬
tensive development of the coun¬
try's raw materials resources, and
they may actually decrease them.
What may be called "sound" eco¬

First Securities
R. F.

Corporation

Campeau Company, Inc.

Clayton Securities Corporation
Baker, Simonds & Co., Inc.

Howard, Weil, Labouisse, Friedrichs and Company

nomic development, therefore, in¬

balancing of these two
objectives against each other and
a recognition of the relative costs
that

Setting

great many countries, the
trade problems between
Canada
and
the United
States
must seem to have a note of un¬
To

idea

Straus, Blosser & McDowell

Saunders, Stiver & Co.

grasp.

and 1 am sure that the
expressed here will reflect
•

First Securities Corporation

McCormick & Co.

Fulton Reid & Co., Inc.

ought to be the least difficult of

volves

have,

par¬

fail to realize

may

toward U.

would

this fact.

Cantor, Fitzgerald & Co., Inc.

Byllesby and Company
(Incorporated)

of the most vexacious prob¬

ably receive less attention than
they deserve.
In presuming to
discuss these matters, I am fully
aware that I do not have the in¬
timate
knowledge
of
some
of
them
that my Canadian friends
views

and

measure

within

and

ever, would be to ignore
sociated
problems.
We

both

lems,

States,

the full

some

become

two

our

other

each

countries,

can

affecting trade and in¬

neglected

eco¬

levels

both

last

abroad

United

This need is not likely

need

diminish

II. M.

Clayton Securities Corporation

notwithstanding this very
background, there arc

problems

t«rove

Moreover,
of all pri¬

nitudes show how much

nomically.

sides

practically

vestment between Canada and the

imports.

S. investment

was

both

with

favorable
David

and
her

forces

funds, which
spontaneous

be obtained jrom such oj the undersigned

Cruttenden, Podesta & Co.

response

border,

But,

Canada's

70%

may

lawfully offer the securities in this State.

may

ticipation.

59%

some

countries.

governmental interference

im¬

pressive, hav¬
ing amounted
of

two

our

the
least
of
this
enviable
situation is the free movement of

even more

Not

Canada.

Looking

Copies of the Prospectus

less impressive are the
vitality, friendliness and over¬
lapping of cultural traditions of

accounted

population, industry and trade.

each entails.
can

gency
sources
can

are

where
in

natural

great demand

be economically

marketed,

economic

Vercoe & Co.

and

exploited and
development

vulnerability to fluc-

Continued

Beil & Hough,

Inc.

Oscar E.

Dooly & Co.

Draper, Sears & Co.

re¬

should begin with such resources.
In this case,

Powell and Company

Saunders, Stiver & Co.

Incorporated

be argued with some co¬

that

Nolting, Nichol & Company

McDaniel Lewis & Co.
77

page

Erwin & Co., Inc.

Mullaney, Wells & Company

Berwyn T. Moore & Company, Inc.

Zuckerman, Smith & Co.

The Commercial and Financial Chronicle

(1414)

What Shonld Be Considered

85%

its

total

intercity

transportation

freight

require-

ments.

United

the

States

the

roads
lie is

is approximately 47%.
It
is thus performing its vital transportation work with a maximum

Railroading

conservation of fuel, resources and

By WILLIAM J. QUINN*

the same time
is strengthening the one form of
transportation that it knows would
be indispensable in time of war.

President, The Milwaukee Road,
Chicago, Illinois

railroading is attainable, according to

A tremendous future for

Milwaukee Road head,

providing elimination of obsolete gov¬

sixpoint legislative

tinued
There

to be

seems

now

the

great eager¬

pry

will

what

mobile

World

to the

are

damage

and

years?

In the

spirit

of to¬

sons

day's curios¬
ity, I am going

War

causes

the

The

railroads

and

the law

are

during

the

Korean

the

Quinn

railroads

tonnages
This

inseparably connected.

makers

the attitude the law¬

troop

and

large

movements.

and

the

regulators

will

take toward them.

capability may be very im¬

rail

Before going any further, I want
make clear what my view is

even than their own colorful
past.
I don't say that as a form of wish¬
ful thinking—the facts support

conviction.

The hard

build

the railroads

the

economy

people

are

that

my
around

core

belief is

that

indispensable to
of this country and
becoming more and
are

aware of it.
That indispen¬
sability doesn't come into being
6nly in time of national emer¬

was

the

It is just
peace time.
gency.

Even under

much

fact in

war

condi¬

ple recognize this and have pub¬
licly confirmed it. Last year, in

testifying before the Subcommit¬
on

*An
One

Surface

address

Transportation of

Mr. Quinn

before

the

Hxindredth

Anniversary
Celebra¬
tion
of
University
of
Michigan
Law
School, Ann Arbor, Mich., March 13,
1959.

bomb

months

recent

accustomed

come

have

our

that

was

Russians.

missiles

and

their

vances

weapons

ogies.

consider

the

Red

and

than

freight

intercity

trans-

that Red

We have informa¬
China

has

about

billion

improvements

dollars

its

which

Both
for

the

result

decision f

the

Court 'handed
year this school

Supreme
same

"There is, in a certain sense, a
compulsion
upon
all
requiring
transportation of property to employ them.
There is no.mutuality or freedom of choice of-

countries,
foreseeable future

use

equip-

1859, at Lansing), 6 Mich,
242, at page 247, the court said:

these

deliberate

railioad

Term

rail

sell

or as

securities. 7 he

is under
a

The person desiring goods
forwarded is compelled in reality
to

calcula¬

have

the

railroads for

them carried

(railroad)

circumstances to he construed as an
solicitation of an offer to buy
any of these

forward

company.

it.

dicl

have

a
monopoly because to
society has failed to dislegal concepts
which were
initially created to
control this monopoly.
•
People are becoming more and
more aware of the indispensabil¬
ity of the railroads.
Perhaps a

offering is made only by the Offering Circular.

date

General Sales Corporation
Corporation)

(par value fifty cents)

the

Pacific

discount

Northwest.

per

our

the outmoded

fident

that

known

Offering Circular available

request

their
life
ness

SECURITIES, INC.

99 Wall Street

New York

BOwling Green 9-7565

the

about

the

5. N.

1'.

necessity
of

the

on*

sooner

part

later

the

awareness

to i the

nation.

the

there

railroads,

greater becomes the

UNDERWRITER

ROSS

A steel wheel turn-

steel

however,

rail

will

still,

inherently

cheapest and most efficient

the

means

economic

That

aware-

reasons

for

ture of oyr

se£r

todav

emnlov

£ l°~?y f ^

concluctea

radar

eitner

*he railr°ads or lor them in m-

^pro™rtfj^

deeade^nd

eouple of

' :

ahead.

years

cleared the

n is to the noint

T tujnk

add

1 think it is to the point to add
that

research

railroad
,

has

also

trnffl>

reached deeply into tne traffic
department. Not onlv are railroad
Not only are railroad
organizations working in this
department.

rate
•

field

ture growth of ourkcountry

determine

justments

what

rate ad¬

service

and

being forecast,

changes
made, but a number of
individual ! railroads,
> including

century, but only

The Milwaukee Road, have ere-

ated their own research departments. to our. own case this re-

Statistical Forecast

should be

Here

what

not for the next

forecasts

tms

about

travel, man-made

space

then

that

one

the

confidence in the fu-

search effort is already proving
very

intercontinental ballistic

man-inhabited

dra-

helpful in keeping

with the requirements of shippers,

but

road and for its customers

^roa(jer an(j mQre basic future of
Qur socie^y here on earth,
^cs—win

increase

from

for the rail-

time

Mergers and Consolidations > *
You

mil-

173

g°es on.

statis-

not

parallel

and there is every indication that
it will do much

"®ture-^fhe^less^nsatfonaf
population—people,

facil¬

our

ities and services in close

Let

satellites.

hear

lot

about

merger

and coordination of railroads toam sure in the years ahead
through merger and coordination

day. I

of facilities there will be fewer

railroads, fewer duplicating miles
trsck
greater

facilities,

cind

thus

efficiency without

de-

d i c t i o n crease in service. Today, there;, is
which has come to my attention is
hardly a mile of railroad which
the estimated population growth, ."could not easily handle twice the
by states, by 1970
only 11 years number of trains.
Mergers and
away
The average rate of growth* consolidations are easy to recomby all states-was estimated at mend but are not always easy;to

Incidentally

27%,

one p r e

Michigan
ranked
"growingest" state

fourth

Nation

with

estimated

the
the

of
rate

43%.
The

value

call

Product

total

goods and
produced—what the ex-

services

perts

the

Gross

National

'predicted
to
rise
$440 billion to $835
billion in 1975, this prediction being based on a continuation of
past
and
present
trends.
This
fr0m

—

means an

large
g0

the

1980—only
predict

year

now—and

National-

billion.

time

term

Product

-one

Now.

for

the

first

them

find

all

over

the

United

States,

That

expanded
population will
purchase automobiles probably at
rate
.

two

number

not

three

per

times

above

purchased

year

increasing,

demand
for
railroad tracks

transportation on
rights of way. The complex
problems of traffic congestion and
the tremendous sums
necessary to
and

industry is that rail-; provide

Union
Another

great

Rules

problem that is getting

deal of attention today,

21'-ture''/is the matter- of feathera
bedding.
In railroad* language,

thousand billion.'Not long ago we
choked a little-in talking in terms"*

the

trend toward mergers and cohsolidations will continue arid
gather momentum.
;

nearly twice as
as'to which there will be sigThe forecasts-.mificant developments in the fu-

economy

from

Gross-

problems of very com¬
plex proportions which are not
easily solved.
Nevertheless, the

it is today.

years

consummate. There are financial,
physical, geographical, political
ancj fabor

about

continuing,

repeat

which

th_

;-n°se

another

of the public' last year. This makes
influences
the
assured than ever of a

legislative and; regulatory bodies. That is the Way our
democracy works.
I

®ten morfa^vXced L^fn fta°d

reason
which
t
,
confident that
prompts me 10 ne coniiuem inai
the railroad industry will con—
nnfinnoi
backbone of national

Still

actions

ized traffic control systems. Trains
he. swiftly dispatched from

the Nations labor and
fuel supplies.

—

Offering Price: $2.50

atnev^^reater relaUve ^

Company is engaged in retail

service.

ing

savings to

better way of

120,000 shares Common Stock

be taken on by the

can

myself using, a new
speaking of our national
putting it is to say economy—$1" trillion by 1980!
people are rediscovering the im.The products:of this fantastiportance of the railroads, t You all ,! cally-rexpanded f economy' will
know how much
has been said have to be ^ transported—the raw
and written about the railroads< in " materials to
factory 01* processing"
the last year or two.
That all plant, the finished products front
contributes to a better knowledge
plant to distributor and then to
of railroad problems.
I am con- the
consumer
235
.million
of

OFFERS

merchandising

I have even

to regret that railroads ever

come

card

The

required
railroadsl

fered.

"(a Nevada

times of national emergency, the
additional transportation services

centrating on their rail systems.
Putting it in another way, Russia,
a

regulation

founded. In Michigani Central
Railroad
Co.
v.
Hale
(January

will continue to be this
country's
most dangerous rivals, are con¬

railroad

was

system.

eic
th.

111

the

down

recently

for the period 1946-1960 for

capital

toward

and

Michigan

lines totaling 3,550 miles
Soviet Government will

average

there

described

rail

new

and.the

year

did

J™11™ feed?

Russia

attach

employee

per

practices.
That obso- jjQn \mericans
today to 235 millescence of legulatoiy attitude, I i:„„
Americans in 1975* that is 62
submit, is a relic of the days when ,mjQijon m0re people in this Nathe railroads were a
monopoly.
clothe house, carry
and that was long before my time.
in automobiles on highways, and
Ihe competitive position of the
gouip with Bpplinnces furniture
railroad industry 100 years ago is
and ajj the 0ther necessities.

ad¬

then

hard

driven

ment

technol¬

importance

China

transportation.
built

and

significant

increasingly clear
as the rail-

one, do not regret
to

much

portation

years,

itetwork

successes

other

tion

m°dt'S °f sTch"as
missiles,

complete^odernization, that
far
obsolescence

be¬

have been jarred out of our com¬

placency by the Russian

emercmciemei

compete on terms

It has become

the

tion, continues to

announcement

offer

labor

trucks, airlines, pipelines
will, of course, also be
performing an expanded but perhaps more specialized transportaan(j barges

years. I am not
i-luding in the following statis-

transTortaLn"11

comparing
performance in certain fields

with

un
an

begin to see most vividly the
framework surround-

during recent

Railroad? very, obviously do not
have a monopoly today, and I, for

This

users

It is in this connection that

roads 'have

tion

atomic

tions, rail transportation has some
unique advantages from the mili¬
tary standpoint. Our military peo¬

atomic

nwaitin«- such
dwdiung suu.
awaiting sucn

f
&£&«£&
their ability to

U.S.S.R.'s Rails

;

tee

economical

InrVh'rrailrnnd^'miVr the'result, for the next 15

that city.

na-

18 hours

dropped

in-'

regulatory

restored

out of Hiroshima

after

about the future of railroading. I
think their future will be greater

which

transportation

in and

assumed

railroads

American

times.

It must also be remembered that

were

To be prepared ior times
of stress,
this industry must bit
given an opportunity to keep itself physically fit in more normal

sabotage,

handle

can

rendition
cuxiuiuuii,
condition,

are the
portant in future emergencies in
most regu¬
lated industry in the country and* which the United States may be
to a considerable extent their fu¬ involved."
on

gency.

The railroads

ture rests

threatened.

certainlv be follv to expect that thev
tuiniy oe xouy to cxpec
mat x
y
could
exist in a
mere
standby

rehabilitation capa¬

bardment, demolition
J.

William

illustrated

dispensable only in times of
tional emergency, it would

can

learned
was

dramatically

are

that

bility of the railroads. In a rela¬
tively short time following bom¬

the

railroads.

been

strikes

natural

from

in-

and fuel in the production of in- ? of
transporting freight, particutercity
freight
and
passenger
larly in the mass which will be
transportation''services.
This is required in the 1970's.
/
particularly true in periods of na^
^
»
-V
tional emergency, when the need
Research in Rails
for
transportation
services
is ; This fact becomes more signifi-

need

imperative

accustomed to deal¬

are

with

rail

the

the President of the
ordering seizure arid
operation of the railroads in 1948,
and again in 1950 when paralyzing

attests

War

that

will.^play

con-

United States

quickly restore
trackage and structures for opera¬
tions.
One of the important les¬

future

peace,

in the past by

Even

life will

discuss

time

nation's

The

recuperative ability, saying

"railroads

importance

the rail lines shut down.

He also called attention

ing

far and away the

are

Similarly, the productivity of
railroad fuel consumption in terms
of services produced was more
than three times that of trucks. In

that fact.

year,

Railroads

motor trucks in intercity service.

why I have
confidence = in the future of the
railroads is that basic economic
laws are on their side.

has

ance

insures

problem

transportation

The

„

ior uninterrupted railroad service

going to make
what

Inter¬

Foreign Commerce, Ma¬

flexibility and expandability
transportation and pointed
that the railroads' perform¬

out

manu¬

facturers

Anotherreason

the

the auto¬

cars

the

railroads

of rail

space,

kind

Basic Economics Favors Rails

m0st

Thursday, March 26, 1959

greatest and when labor and fuel;, cant when we consider that the
are necessarily in short supply.
steel wheel on the steel rail of the
sider for a moment what would
Based on statistics for the year
future will likely be powered by
happen if we»were unfortunate 1957 (the last full year for which improved motive power and sped
enough to have a nationwide rail- they
are
available),
railroads
by
refmements of
road strike, with all—or most—of turned out more than four times today s highly developed central7
As

con¬

„

the

.,creasing role,

jor General Samuel R. Browning
of the United States Army stressed

reach

outer

Committee

Senate

state and

United States.

merger-consolidation movement.

the lid of
peek inside.
People want to know when man
just

ness

the future and take

and foresees

program,

greater proof
demonstrate the

any

railroads
in
time of emergency whether it be
in
Red
China,
Russia, or
the

enaction of

required

indispensability

successfully completed. Mr. Quinn deals with the
industry's indispensability, recuperative power and potential,
and other reasons supporting assertion that rails will continue
as the backbone of our national transportation.
He pleads for
ization

don't believe

regulations said to be restricting growth and modern¬

ernment

and

manpower

coming to

and more."

figure

Abeut the Future of

and the pubrealize it more

are necessary

facilities

cope

with

employees

either in

are

the op-

eratinS category, meaning those
who. actually run> the '.trainsj or
?re in the far larger non-operat-

group,
performing
traffic,
accounting, clerical or other railroad

work not directly
running trains. :

in
.

involved

the belief that rules govern-

ingi. the

work

and
..

of, em-

pay

...

ployees in the operating

group

are > outmoded
and enormously
wasteful, railroads began, in 1958,
a

study

which rules
much could

determine

exactly

are at fault and how

be saved by their
modernization. This studv, which
is continuing but *is already
lai'gely complete, shows conclu-

siveljr that many work rules are
indeed: outmoded, • and * it shows,
too> that they are costing over
$500 million

a year—not

counting
Nation

the far larger cost to the
as a whole in

and

resources

wasted

that

Continued

manpower

could
on

and

page

"Volume

189

Number

5832

.The Commercial and Financial Chronicle

(1415)
jr.

choosing among various grades
crude
oil;
in
transportation
larger tankers and pipelines
are
being built and used; and in
marketing we find bigger tank
trucks and higher throughput at

Today's and Tomoriow's
And Foreign Oil Picture

-if;-

By M. J. RATHBONE*

Standard

President,

Ail:

Oil

Co.

centrally

(New

located

terminals:

Jersey)

through

o'di

Positing

an-;

W-Uv

£jrif

practices,

found

and, thus, induce

less

modern

all

four

automation

labor

sharp growth in world demand, oil industrialist

contends this will be reflected in oil demand

ways

"-i'l;

■

•Ojpf;

o/l;
vd '

regrets quotas

heavy fuel oil and effect

upon

dent

oil

The

very satisfactory period for the
htfil industry. This has been true
joWith respect both to domestic com-

called

/r rather

in¬

anoma¬

jj oil products
'

continued to

instance,

oil

world

consump¬

tion

in 1958
-

Reached a new
J, all-time peak,
2o
I

and

Rathbone!

net

yet

earnings

moment

'only

;

taxes

last

which ; I

oil

most

will

were

im-

ment

but

cult' to

ago

companies

and'

the

ican

continue

arising from
is much

appraise.

control

diffi¬

capital.

And

business

the

allowance would

Government

tudes

abroad

tarice

our

actions

30% from

can

summed

lower

phrases

these

causes

difficulties

in
and

prices

higher taxes.
The price erosion
of

was the result
number of adverse forces all

look at the road ahead,

off
Looks Ahead

,,two

our

were

in 1957.
at

This year, we are

increase

looking

than

one.

would

almost

all

/the

seldom

years,

./'any

period

/branch of
/nave

an excess

had

one

leum

products
The

used

dustry

simultaneously in all four phases.

/ refining, in transportation and in
At the sameytime,

temporary tapering

/ 'off in the strong growth rates for
'

oil demand here and abroad, par¬

ticularly from mid-1957 to mid1958. This reflected the general
business setback in the United
n

•

vStates and its impact

in some forTo it was added the
^ adverse influence of the Suez cri-.

„,,^ign

areas.

which acted as

expect
there will

pressure

their

continue unabated.

influence

sure

basic

expect

the

oil

industry to

and

into

the

petro¬
United

taining,

source

es¬

of power in

electric

and

directly

tions

in¬

generating

the

cess

tors

both parties

domestic

have

least

natural

good

half

and

such

rience in living with and working

assure

elusive

expand at

recognize the impor¬

;

than I

we're

prepared.

healthy rate sufficient
competitive frame¬

which

within

meet

domestic

atmosphere of mutual confidence

resourceful

and

demand,

and prosper.

company

and

imports have long served

This

announcement

is not

respect—and when both par¬

offer to sell or a solicitation of an offer to buy these securities,
offering is made only by the Prospectus,-;
"
,

The

$30,000,000

First

Mortgage Bonds ¥A% Series of 1959 due 1989

nuclear fuels.
Dared March

supply side of the equa¬
changes are taking place
die
bdlvlllLi
IJIdCe
through the operation of economic
on

the

thousands

Due March

J, 1959

I, 1989,

indi-

anci

companies comprising!
industry.
Lower profit mar-;

Price 101.155% and accrued interest

brake on the
6 expansion
uf^he European econ- gjns have si0wed down the flow
/©my and on the growth of oil con- of capital into the business and the
i1
and elsewhere in excess Gf Spare capacity is being

^-sis,

"iothe Eastern Hemisphere.

/)</Entirely apart from its effect on
,:>©il demand, the Suez crisis added
Ito the industry's headaches in an--

/other

way.

Extraordinary efforts

made in the United States

were

-/and

late

Venezuela

1956

and

/in the first half of 1957 to keep
/Europe well supplied with oil for
v'ithe

duration

the

crisis.

With

/ the clearance of the Canal, Europe

/Very quickly began to draw again
the Middle East for almost all

.♦•on
™:

/
v

its

supplies.

However,

cor-

responding drop did not occur immediately in the additional production which

had

been

brought
:;!into play in the Western Hemi! sphere with the result that inven¬

-.1

tories rose rapidly and some over
hung time
market for quite

<,:;the

nctnereaiter.
addr«s

;r^ie

Mr.

whittled

away

contrast

to most of the

some

areas.

been

troublesome

last two

Bond Club of New York,
r ■*.

New

York

the

also

have

management's

Prospectus may be obtained in any State in which this announcement is circulated from only such
of the undersigned mid other dealers as may lawfully offer these securities in such State.

HALSEY, STUART &, CO. INC.
-

A. C. ALLYN
.

INCORPORATED

very

acted

•

DICK &,

AND COMPANY

spur

HORNBLOWER&WEEKS

WEEDEN & CO.

& CO.

ingenuity in find-

ways to do as good a job at
lower cost. This is being done in
all branches of the business.
In

spaC-

ing; in refining greater selectivity

HALLGARTEN & CO.

;

HIRSCH

&. CO.

PAINE.WEBBER,JACKSON&CURTIS

SCHOELLKOPF, HUTTON & POMEROY, INC.

VAN ALSTYNE, NOEL & CO.

BLAIR & CO.
INCORPORATED

INCORPORATED

COURTS & CO.

H. HENTZ &, CO.

|ng

hole drilling and Wider Well

L. F. ROTHSCHILD

MERLE-SMITH

can'be

substantial
progress which our industry al¬
ready has made in reducing oper¬
ating costs.
Lower realizations
lor sales

The

HEMPHILL.NOYES&.CO.

Encouragement
found

during

years.

Ra.hbon.-b.lore

♦'■tcity, March 19, 1959.

postwar
years/much of the capital spending of 1958 and 1959 is directed at
getting greater efficiency,- rather
than more capacity.
The slow¬
down in total spending and change
in emphasis are bound to have a
favorable
effect, eventually, on:
the
price
weakness - which rhas

efficient,

can

CllcUlgCo

forces

can

industry to continue to
a

provide

work

that

you

problems

—

What I do expect, confidently, is
for the oil

suc¬

when

making the effort in

complex,

helpful preparation

On the

tion,
HUH,

dozen

If long expe¬

gas

in¬

been with¬

never

in¬

this nature

enhanced

also true that

unsolved problems.

sought

prospects for

greatly

are

tance

re¬

some

are

out

Satisfactory solu¬

problems

However,

involved, not enough of it is

it is

even

of other forms of energy

use
as

see,

move

the

usually difficult to work out.

are

heating 1large

indirectly,

objectives

simultaneously.

buildings. Because of the cost fac¬

made

larger share of the profits

heavy

In others, it is aimed at ob¬

forces—

far ahead as wewhen allowing for
substantial further growth in the:
Can

for

swiftly forward on all fronts with¬
interruption. We do
face difficulties and
uncertainties,

larger

first, the sheer fact of growth in
population; and second, a gradual
rise in the standard of living and
in the degree of industrialization!
in many parts of the world. With
these
forces
in
being, oil con-,
sumption is bound to get progres--

sively higher

dedi¬

far, I
realize that I do not

you

It reflects the

two

supplies

Our appraisals show convincingly;

i/We had too much in producing, in
marketing.

some

From what I have said so
am

oil

revenues.

Heavy fuel oil is widely

and

stations

oil

inclusion

not that this vigorous rate of growth'
of spare capacity.. jn the/world's appetite for oil will

the surplus showed

j,experienced

Curtain,

consumption at home.

which

their

Iron

governments

under

cate

the

reasonable

dustry

crude

did

-/in one branch was usually sof,/tened by the fact that the other
/branches were then in a fairly
^/veil-balanced position. This time,
/

business whose

least

business

/But the impact of extra capacity

■(.however,

growth in 1959 will require additional supplies equal to all of the
1953 production of Saudi Arabia,

have

when
the

increase

but

finers

are

the

kets.

that

imports

normally

simply

and .atti¬

Jersey company. This is particu¬
larly true in the concessionary

countries,

behind

think

;

volumes of crude into export mar¬

government

own

oil. Put in other terms, this means

as an

used

contrary

recently

Our

had overshot
jf.jthe mark and provided too much
/capacity. This was not a com/pletely new situation since, over
/dustry,

First,

probably could increase the

imposed mandatory controls upon

million barrels in the daily use of

once.

bloc

out pause or

in-

/operating at

free world's market in that year.
If it wishes to do so, the Soviet

In some cases this takes
the form of pressures on the con¬
cession
holders to move

timation.

First, we are still a growth industry. In 1958, the consumption
of
oil, world-wide, was* almost
800,000 barrels a day greater than

a day in 1958.
This
represented less than l3/2% of the

are of equal
impor-i
industry and to the

stances both

earnings

our
1957.

nation's best interest.

our

present level of sales.

history, but

220,000 barrels

second, it is in-' ments of the Western nations ris¬

particularly regrettable in

/jproducts for the first time in

ing to this kind of bait to the
companies to find and point where they would let their
develop oil reserves which are so countries become dependent, even
necessary for our country's prog-! to a relatively small
degree, on
ress and
security. Its effectiveness Soviet supplies of such a vital na¬
has been demonstrated amply
and, ture. Furthermore, in view of the
in my opinion, any reduction in
very low per capita rate of oil

fuel oil under the control system is

warfare

tended to provide an incentive for

to take

than

in the past,

been

American

States.

part of

has

concern

volume of oil available for export
tion, as though it were income, of' to the free world.
However,; I
what really amounts to a
cannot conceive of the govern¬
recovery

Against this background of the
last two years, I would now like

the world market

and

from Russia and its satellites to
the free world amounted to about

as a

/divergence. In 1958

large

Competition

major weapon of eco¬
against the West.
To put this in perspective, I should
point out that movements of oil
nomic

companies have received

First,

oil

use

40 years Amer¬

over

than

expressed that the Soviet bloc will

are

effectively

year

the

matter of equity,
it is intended to prevent the taxa¬
up.

particular

over

taxed

showed a rather sharp decline. My
/firm's experience is typical of the
we sold more
billion barrels of petroleum

for

oil

long-

Various reports on Russian Oil
have been making news in the last

this allowance for two sound
pur¬

govern¬

U.S.S.R.

to
and

gasoline

proposed

attacks

tax laws. For

tially increased the industry's tax affairs/This affects not just a few
burden in that country.
For the individuals or companies but the!
fersey consolidated companies/: ability of all private investment
his action reduce d -' estimated to serve
people and earn a proper'
arnings for the year by. about $90 reward for doing so.
History has
million, reflecting, largely, its im¬ shown that moves of this kind
pact on the company's principal Often have results far beyond those
affiliate in Venezuela, Creole Pe¬
intended/to the detriment of con¬
troleum Corp.
This changeValone sumers, employees, investors and
was
responsible for 40% of ' the the
general public in whose name
reduction Mn
our
earnings "from
1957. How long these higher taxes government actions are taken.
will continue probably depends on
Comments on Quotas
the developing fiscal situation in
Venezuela and the ability of Ven¬
ezuelan crude oil to compete as

present

poses.

actions

the

heat

being made
the depletion provisions in our

problems

difficulties

years

of problems

December,

ment of Venezuela which substan¬

t grow steadily.

I'ffree

two

Renewed

confi¬

appiied to the full year 1958.- concern is the tendency of our
I refer, of course, tothe ..action
own
government and of govern¬
taken by the Provisional Govern¬
ments/abroad < to exercise more

lous situation
<;i*as demand for

'For

economic

contributed

turn

for

taxes

except to

importance

considerations rather
short-term expediency.

con¬

though gasoline
at a higher
rate than
any other essential com¬
modity and many luxury products.

Hand

diminish.

consumers.

Additional
continue

were

ternational
/oils. In many
..-ways, this is

higher

spoke

posed

panies and the
-

the

industry's

last

choice

sources

attach

range

United States at both Federal and
local levels, even
is

reasons

have

activities

many

power.

being

However, the horizon made

The past two years has not been-

/XjSO

that

which

xxt

these

with

ties

Re¬

availability

leave

curtail

get the work done with

For

day more than in 1958. The
Jersey company head singles out factors causing lower prices
and higher taxes for past two year's
difficulties; offers his
views on the way the future seems to
look; and particularly
a

will

higher-cost

manpower.

Confident Change Is at

barrels

the

sumers

bulk

are

heavy fuel

sounder

will be

million

duction

branches,

and

higher prices for domestic and foreign oil. Quantifying his
views, Mr. Rathbone notes appraisals indicate 1959's demand
one

provide the balance required.

much

;hv

THE MILWAUKEECOMPANY

IRA HAUPT & CO.

STERN BROTHERS & CO.

WM. E. POLLOCK &, CO., INC.

J.S.STRAUSS & CO.
March 26, J959.

SHEARSON, HAM MILL & CO.

SWISS AMERICAN CORPORATION

•

grow

and Financial Chronicle

The Commercial

applaud all that the U. S. A. has
already done to hold
the xlree
world together.
Some who have

Sabotaging

U. S. Must Cease

about

there

What

about

report

the

working
the Anglo-

American

Al¬

liance

the

in
of

field

that,

world

survive,

ought

our

and our

were

cooperation in
defense

But

how

London our

and

sion

This

that

par¬

and

economic expan¬

own

the

question

the

rest

thought.

the

that

which, I
in
the

to
we

say,,

Trade

fact

constant

give

encouraged

are

United

the

States

the greatest single market

now

for United

pectations. Thanks to your eco¬
nomic growth, total imports into
United States have risen

the

high level. Indeed imports
have practically doubled over the
last ten years. We in the United
Kingdom with the help of the
Dollar
Exports
Council
have
worked hard to take advantage of
wide

the

opportunities in
these efforts

markets,

—for Britain of all nations—must

which

matter of vital

con¬

successful

been

your

American

The

record

one

re¬

you

which

are

rightly proud. Since the war the
marvelous expansion
of the
United States economy has been
of
outstanding
importance
and
benefit to all your friends. In the
immediate postwar, people in this
country who ought to have known

But,

the

must
ask
ourselves
remarkable
things
to

referred

have

far

in the critical circum¬
today. Just because we

enough

contract

cannot

the

out

cold

war, some country or countries in
the free world have to give the
lead

organizing the economic
and
expansion
of
our

defense

grand alliance.
It is plain that
the leadership
must come from

peoples.

English-speaking
Now

how

not know

many

station

was

great deal of play

lurches

the

likely

American

take

economy.

also assumed that, if Amer¬

develop pneumonia.

The skill with which your gov¬
and
businessmen have

ernments

surmounted

cessions

three threatened

have

these

set

re¬

fears -at

you

it
an

by
_

also

heard

great

deal

talk about the likelihood
dollar would become

that the

scarce cur¬

and that the Americans
deny the world the means
of payment for goods and services
rency,

would

without
would
Our

which

wilt and

the

rest

stagnate.

The U.

happened. Year

by year since the war you have
put out dollars into the world—
partly through the generosity of
the Marshall Plan, partly through
Point

other

and

programs,

partly through aid and military
expenditure. The dollar resources
of the free world have

thus

been

massively strengthened, and it is
U.

taken

which

has

largely

the

lead, and borne the
major share of the burden, in
strengthening the resources of the
World

Bank

and

technical

bringing aid

assistance

many

underdeveloped countries. But as
salvage
operations
of
the
postwar are completed the scene
changes.

the

♦An address

the

American

London,

March

by Sir David Eccles before
Chamber

11,

1959.

Commerce,

well

necessary

and

give
blessed

for

most

the world,
Kingdom,
though small in numbers, have
an
exceptional position at the
center of the
I

hope

United

the

Commonwealth, and

consider

you

to be your

most robust and reliable

These
t

being

fail

the facts of conlife, Shakespeare

pora r y

have

U. S. A. and

ally.

said

that

the

the United Kingdom

the

set

right example in
economic
policy there is little
chance that anyone else in the
free world can effectively do so.
Now
of

with

the

trade.

wealth

And

Board

concerned mainly
I

and

ask

what

policy should
the

Common¬

pursuing today? And
important sector how far
living up to our high po¬

this

are

of commercial

sort

of the

President

Trade, I

States

the

and

are not willing to
example of maximum trade

industrialized

between

and

the

between

and

countries,

high-standard
countries,

low-standard

not the low-standard

why should
countries

communist sys¬
After all they have a well-

tem?

try

advertised

the

their

before

success

of vast nations starting with
low standards and raising

eyes
very

their production by

ruthless state-

planning.
is

We have to show there
more
efficient and a more

humane way to

better living.

S.-U. K.

Behavior

this tremendous struggle for

the

championship

how

the

Kingdom behave to each other is,
I

submit, of
fact

great importance,
symbol. And I

very

and

feel

my duty to take this op¬
portunity to put on record a few
examples of recent actions by the
United States which are reducing

the

sense

tion

between

economic

Commonwealth

lantic

take

zine^

these

one

across

side

the At¬

the

our

side

the

great

lead

The announcement of

protect
high cost production in the U.S.A.
created the greatest concern dur¬
ing the Montreal Economic Con¬
quotas

designed

Australia

ference.

Canada in

and

was

economic

eral

contrary

the

gen¬

policy
which
a
and a very

creditor

country

friendly

country

The

same

the

should

true

pursue.

restrictions

import of oil.

Secondly,\ I
need not remind you of the details
of the Greers Ferry contract. No¬
on

body in this country believes, and
it would be impossible to make
them believe, that the rejection of
the British tender was justified,
on
defense
grounds.
There are
other cases pending and we are

watching

the

they

way

with

interest.

acute

problem"

of its new urgency.
In this country we most heaVtily

account

that without

some

requirements, which

trade

the

traffic

not

could

space

efficient.

Fourthly,

there

wool

the

this

have
We

have.

felt

compelled to

it in

and

have

will

the

cause

the

you

navigational aids.

The

purpose

have

of the

been

conference
consider

objective spirit the finding of
answer

to the ever-grow¬

the

peting

would

had

systems

Vor/Dmet-mid

—

the

ponder who
leaders of

economic

world?

Protestant Welfare

S. E,

Campaign Opens
C.
of

Sheperd,
the

First

have

repeatedly

full

hoped

that

the

discussion

American
Debca

British

group of busi¬

continue to favor Japan at the ex¬

of the United Kingdom.

This is

just what has happened.

woollens

have

States

British

and

exports

United

exports

are

increased

side

our

Stock

Ex¬

change

com¬

drive

mittee

raise $387,-

000 in support

its

1959

budget of $1,006,903.
Present
C.

Howard

Sheperd

Douglas

were

Reecl Brash of

Smith,

Barney & Co.; Austen B.
Colgate of Wood, Struthers & Co.;
Henry Darlington, Jr., Hill, Dar¬
lington & Co.; Howland S. Davis;
Stanhope Scott Gocldard, White,
Weld and Co.; Ralph Hornblower,
Jr., Hornblower & Weeks; George
H. Howard, Jr., Harris, Upham &
Co.;
Maitland T. Ijams. W. C.

Langley & Co.; Robert Van Marks,
Empire Trust Co.; Harry S. Noble,
DeCoppet and Doremus; James E.;

step

Osborne

have

the
Federation's
ope n

down

one-third.
On

nessmen

luncheon held

pro¬

point¬
ing out that it must' hit unfairly
high quality cloths, in which fash¬
ion counts a good deal, and must
favor staple cloths which can be
stocked against the period when
the lower duty quota is open. We
are
not asking for specal favors,
but you cannot expect us to be
satisfied when the arrangements

Wel¬

fare Agencies,
was
host to a

tested against this measure,

pense

board

National

the Federation of Protestant

Dominick

II,

and

Dom-

dismantled the quotas on
dollar goods which we had to put
on
to protect our precarious ex¬
change position. I said at Mont¬
real last September that we

inick; David Patterson, Courts &
Co.; John Peterkin, Gregory &
Sons; Hugh Petersen, Jr., Hemp¬

hoped to go further in the removal
of
these
quotas this year. We
should like to do this but we must

step

sure

lars

want

economic

free world

only

earnings

whether

will

reliable

stronger

policy
against
behalf
of the primary producers of the
Commonwealth, for me to
add
that this goes for trade in agricul¬
tural products as well as for trade
manufactures. We appreciate that
it.

trade

and

not

Administration

has

its

real problems and dif¬
Unemployment is a se¬
rious issue in some districts and
so are fears that sections of U. S.

own

very

ficulties.

gradually become uncompeti¬
We accept that. But you and
we have always realized that
in¬
terdependence would involve ef¬
forts
world

and
are

sacrifices.
not

prepared

the

free

make

these, the outlook is indeed black
—or perhaps I should say red. We
cannot expect the U. S. to carry
the whole burden but it is only
by accepting

Tansill, Jr., Eastman

Dil¬

Tiffany and Sumner White of the
First
Boston
Corp., and Vance
Van

Dine, Morgan Stanley & Co.

The

Federation

health

Protestant

central

the

welfare

and

for Greater New York.

agency

provides services for 219 agencies

operating

391

separate

children

programs

families,

their

and

youth, the aging and the sick and
troubled.

Ford, Bacon & Davis
Marks

it is necessary, on

And

the

American

for

works

ald

and

members

world

free

Shaw,

Norman W.

for

countries,
or
under¬

industrialized

developed,
more

to the
by this

whole.

non-dollar

The

due

have to think of
well-being of the

country.
the

our

number

protectionism

of
not

dollar

loss

that

increased

the

examples

America

lon, Union Securities & Co.; Henry

know

you

concern

increase in
would follow.

any

which

imports

our

for

pay

enough dol¬

earn

can

hill, Noyes & Co.; W. Mayo Smith,
Blair and Co.,

Incorporated; John
Glore, Forgan & Co.;
Stewart, F. S. Smithers
& Co.; William Struthers, Hender¬
son, Harrison and Struthers; Don¬

tive.

should

put it into

plain that if the

the way they

may

What

City Bank and board member

Interna¬

Conference

and

grow

policy.

English-speaking peoples will not
this, no one else will, and then

the

real

the

can meet, air;
congested air
Howard
not be both safe and. chairman

control

tional Civil Aviation Organization

report to

must

"as

right

must

now

action.

Decca

industry, considered of vital im¬
portance
to
American security,

of the relative merits of two com¬

new

which

any

of the Mont¬

Thirdly,

the unhappy outcome

there

conference

This

alone at the moment

particular felt that this restrictive

This

only

crite¬

operational

by the
excluded

known

quotas

contest for the minds of mankind.
is

well

these

the other.

First
and

the

great ally

our

co-opera¬

country and the

aircraft, and

basic

that the

the

said,

prosper."

world

remain

our

prove

beneficial

side.

wrong

budget

ago.

President

might not be able to
although it was perfectly

meet,

the United

and

for determining the position of an

the

year

greatest producer, consumer and
exporter in the world, the United
States must be a dependable mar¬
ket for foreign goods if
mutually

And Lam

areas.

adopted

the

system for all those who wish to

what

have

Indeed,

Japanese

ing problems of controlling safely
greatly increased number of
aircraft
traveling at
very
high
speeds. This control calls for the
use
of the best possible devices

know

were

The

Eisenhower's

and

control

porters

trade.

free enterprise system, challenged
as it is by the massive economies
of the communist bloc, is the best

task.

safety

proceed, the United
delegation
and
its
sup¬

States

should

United

the best

sitions in the world?

that in this discussion

say

how

require¬
naviga¬

President
message

money,

your

action

far the

country

would

Outpouring of Dollars

But that has not

and

behave

example to those not
fortune.

and

the

in life the

powerful

rest.
We

take

the

and

ica sneezed, the rest of the world

the

place

today.

would

made

about

Thursday, March 26, 1959

of tariff quota, in imposing which
course
he will,
but it will not the' United States authorities are
make him like you or bind him
certainly acting within their treaty
to you
in anything approaching rights.
This tariff quota results
the same way as if you do busi¬
in admitting to the United States
ness with him, and allow him to
market
woollen
textiles
to
the
earn the dollars and the pounds
volume of 5%
of domestic pro¬
he needs to pay for his essential duction at a
duty of 25%. There¬
imports. This means more liberal after imports must pay 45%. I am
trading policies than we practice sorry that the U. S. Government

tions.

here
are
students
of
Shakespeare. Those who are will
agree
that one of the rules of
conduct in which Shakespeare be¬
lieved was that the higher your

better

Especially when men
war is unlikely, aid

substitute

will

man

direc¬

many

stances of

cern.

markable

not

sorry

deliberately

have

and

whether

hot

set the

record

standpoint? In one sense
satisfactory beyond all ex¬

Kingdom goods; we also
know that the prosperity of the
rest of the world essentially de¬
pends on what happens and what
is done in your country; and that

always be

Record

American

the

very

scarcely

Board

from this

by
Washington

free world?

need

What

Eccles

in promoting

action

allel

David

' g;r

are

getting

Vor/Dmet

together

nations

the

be able to meet

traffic

highly congested

it is

Commonwealth
American

The

and

strategy.

basis.

think

price-level.

steady

expansion

economic

continuous
with

our

be establishing if
securely at peace
sole aim were to combine
to

now

the world

cooperation in
economic pol¬
icy is as nec¬
essary

governments is the maximum
of goods and serv¬

interchange

free

the

mean

air

have

to do.
thing,

hold

not

was

short-range

interests

But I am clear
about one
the demands of
our age cannot be wholly met by
a policy of gifts and charity.
You

normal? 1
mean a system of policy and ac¬
tion in which the deliberate aim
I

What

through

thought

that

ices; and also a system in which
debtors try to repay their debts
and creditors behave as if they
wanted their debtors to be honest.
That is the kind of pattern we

merce? Surely
if

pattern of Inter¬

the

what

believe that

not

com¬

it is true

yet

economic-

the

com¬

there

operational

which

tional aids should

ria

necessary

mal satisfactory

taking

are

action

parable

moving towards a nor¬

But

field?

national Trade?

commerce.

Are

The raison d'etre of that

rivalries.

quality goods.

partly
about

to speak
but
more

going
politics

NATO

the

Take

organization is to combine our
military forces and to eliminate

In the latter destructive
category he cites our quotas on lead and zinc imports, our
disqualification of British tenders for electrical contracts,
and the imposition of wool tariffs discriminating against
I

the

efficient

alliance.

adoption of strict commercial policies.

Britain's high

tion

allies.

result

assessment

relative merits of the two systems
and further than this no examina¬
ments

economic

the

objective

the members of the free world as

Board of Trade, Great Britain

the sharp
long-continued generosity
of the Marshall Plan, and our current

initiation

may

System. .In

Nevertheless, we have continu¬
ally to ask ourselves whether we
are
treating each other and all

between the United States

the

since

regret it.

•

trade official calls attention to

British

Prominent
contrast

stones

live

ECCLES*

SIR DAVID

President of the

Dulles

Mr.

thrown

International Trade

(1416)

major share of that

The

Anniversary
firm of Ford,
Inc., engineers

65-year-old
&

Bacon

Davis,

consultarits, will
anniversary by moving
larger quarters in the
new building at 2 Broadway as of
April 13. The firm was founded
in Philadelphia,
opened its first
office there on March 12,
1894,
and moved to New York City two
years later.
business

and

mark

its

new

One

and

the

organizations

oldest

and

largest

its

field, Ford,
Bacon & Davis, Inc. also maintains
offices in Chicago and Los Ange¬
les, and Monroe, La., headquarters
of its construction activities.

Forms

Long Beach In v.

LONG
W.

BEACH, Calif.—Stanley
Wiedrick is engaging in a se¬

burden, particularly in respect of

curities

trade, that the U. S. can maintain
their claim to a leadership which

the

ing under the firm

name

others will be glad to

Beach

Securities

Mr. Wiedrick

follow. But
am
not putting anything new
to
you.
Let me prove this by
closing with
a
quotation from

business

Farmers

from

offices

Merchants

Investment

Build¬

of Long
Co.

previously with
Morgan & Co. and Dempsey-Tegeler & Co.

was

Volume

5832

Number

189

The Commercial and Financial Chronicle

takes

Brainwashing and
Bankrupting Americans

will

the Soviet slave masters

us,

Two
and

world

without

war.

distinguished,

and

Bernard

Herbert

Baruch,
issued
repeated
warnings
the growing danger of in¬

have
about

flation.

Asserting futility of

galloping toward bankruptcy,
people being brainwashed with the false philosophy

with the

U. S. Government is

maintains

that

foreign give-awayiprograms, Mr. Castle

our

foreign aid; with

Offers examples of waste
blank checks being demanded. De¬

new

mands national referendum

the aid question.

Among imme¬

for Mutual

Security; cutting of alleged waste and duplication
throughout military establishment; slashing international loans
payrolls;

and

over-staffed

cutting

Washington political bureaucracy.

>r'

wide crusade

restore

can

the

Charles

late

Beard,

once

said:
"The
Asia

destiny

has

under

pression

mestic

guided misactually as

our

moon,

counterfeit $2 bill.

Product

Gross National Prod¬

our

uct totalled about $75 billion.

But,
worth
of to¬

in that year our

1000.

dollar was
Therefore, in terms

day's

obligations

and

In 1932, in the depth of the de¬

keeping of
the United States; and only con¬
ceit, dreams of grandeur, vain
imaginings, lust for power, or
a desire to escape
from our do¬
perils

beat

soon

dollar,

Gross

our

then

was

National

actually

our

adviser

to
Presidents

States

it will

destroy

run

un¬

impoverish
a
Nation.

fellow countrymen
despite all the
challenges she faces our beloved

nation¬

and

remember

America will

siles to the
deceptive as

committed

the

people
appeal

Consider this:

and

Europe

been

not

God

checked

over-budgeted

Concludes only

United

the

Allow this malady

it.

integrity, sanity and solvency.

our

An eminent American historian, and will

and

away

said, "for swollen prices, high
taxes, the increasing national debt
and the devalued savings of the
little people who suffer most from

steps he urges on the New Congress are: cut in the
Budget to $65 billion; barring of appropriation of new funds

and

responsible,"

seven

diate

eating

if each of

that

overcome

casts

everything

aside indiffer¬

apathy and selfishness."
It is vitally necessary
to get
these sound and patriotic warn¬
ings off, the financial page and
onto the front pages of our Na¬
tion's
newspapers.
I firmly be¬

ence,

lieve

that

patriotic oppor¬
tunity for the women of America
to

that this is done.

see

about

$160 billion.

that

In 1939, when we still had 1000
The American women carry the
dollars, our Gross National Prod¬
uct amounted to about $200 bil¬ balance of power to reestablish
lion. Valued in terms of today's our solvency and security.

has appointed
people for the
pacification of the earth:'
chosen

Although

Professor

said

Beard

this many years ago,

it was never
timely than it is today.

President

;

peatedly

Eisenhower

has

re¬

pro¬

bring
of

our wray

life

all

the

Unfor-

and

get

all

live

which

could

not

rej:fn
1.

that

our

econ¬

But, do not for¬
of

the

Asia

and
and

currencies

Europe,

throughout

South

America, have been made

worthless

cancer

inflation

the currency.

politicians and the false
self-styled "liberals" who speak

simply'ignore

lor them,

the facts

peoples

lives

want

their

openly reject
nUr good-intentioned
inspired ideas to
.

ake them

happened to
take it to

of life and the record of history.

Moreover, countless
own

over

our

image.

pr0Ve

much

too

the

purchasing

+v,

....

1939.

+S dls*iessl/l£ and dangerous

.that too niany big

dustrialists,

politicians,

bankers

i7^ nnnnnnG 1°

175,000,000

power
.

Americans

with

Gross

now

lhat we
We

enjoy

National

are•

$450

Product

the

win

and

wither

our

own

that

'+1,^^ higher one is just around
the corner.
^Prosperity, we are
told, is just dripping all over
us,

fiscai

that

the

India has received $325

grants and loans from us dur¬
ing the past fiscal year, yet she
is not one step closer to us nor
one step farther from Soviet Rus¬
sia than when the giving began.
Our foreign aiders succeeded in

„

strain?

the

yln

Europe, bankers, industrial¬
ists and the average citizen can¬
not understand the apathy of the

people.
They cannot
why there is no pro¬
test and opposition to the con¬
tinued efforts of our politicians

understand

world"

"one

and

groups

pressure

spend
us
into
bankruptcy
through foreign bribery.

di¬

The American
sons
wars

women

New
Here

how

bear the

who fight and die to win the
on the battlefields that our

are

being

but

few examples of

dollars

are

throughout

the

American

our

scattered

world:
1954

the

economy

Government

fast

Bolivian

table.

slipping. It received an injection
of $12 million of Mutual Security

was

aid.

will

Never
of

our

with
a

before

have

the

women

country been confronted
greater responsibility and
vital challenge.

Today, five years and more
million later, Bolivia is
shape than when the aid
program was launched.
than $120

Foreign

Aid

Now

Costs

$7.5

Last

November,

1945

the

United

States

has spent more than $70 billion on

of foreign aid. This

gave

millions of dollars to

it from Iraq.
and after it had pro¬
claimed its "neutrality," we gave
to protect

anon

Later,

millions

government of Lebanon
of dollars to assist its

recovery

from last summer's civil

the

new

war.

Asia our foreign
libraries—the
Com¬
munist stack these American li¬
braries with Marxist books. The
United States builds factories —
Southeast

builds

the Kremlin

ganizers

dispatches union or¬

and

can taxpayers $6,400,000. Marshall
plan funds are being used to build

hotels in India and

elsewhere.

workers

communist
Last

sponded
sures

ideology.

year,

from

when Congress re¬
the pleas and pres¬

President

and Secretary of
voted

tual

excessive

Security,

these vast

sums

Eisenhower

State Dulles and
Mu¬

billions for

assumed

west

Afghanistan.
One
with this project is the

Congress and 175,000,000 Amer¬
were
unaware
of the fact

icans

trouble
lack of

Continued

buy

any

and is under

circumstances to be construed as

of an offer to
the Ptospectus,

these securities for sale or a solicitation
of such securities. The offering is made only by

offerin};

Not

the

vine

waste

New Issue

275,000 Shares

United States Servateria

Gorp,

Common Stock
(Par Value $1 per Share)

through
failure.

and

Price $9.50 per

js just as great as the danger that

persist in spending ourselves into

Copies of the Prospectus may be obtained from the undersigned only
hi those States in which the undersigned may legally offer these securi¬

bankruptcy; they have

ties in compliance

from without.

If we

won

and

with the securities laws of the respective States.

have jost

^he

Society

the

Daughters

American Revolution came
jnt0 being because the founders of
0f

Van

+n£ «118TrS^Sa a5°^t -?Ur
our country rebelled against taxa«?
-e ^r?
which t|on without representation. Now,
JUn 1 in^
,0U1' dlmlnish- we are being taxed to a point of
ing dollars and make them more

Shearson, 11 am mill & Co.

costly

Lester, Ryons & Co.

Alstyne, Noel & Co.

•n

suffocation

for

the

necessities

life

which you buy at your food mar¬
ket and elsewhere. I want to ask
..

„

one

basket?'

Americans

not

realize

this inspired "brainwashing"
our Gross National

Product,

that is

pyramiding in the billions

"^ITadaress
City

American

Washington
away

our

insist

rulers

upon

resources

giving
scale

never
before attempted by
mot irresponsible dictator.

This

was

brought home

Crowell, Weedon & Co.

the

Il.IIentz&Co., Cruttenden, Podesta & Co.

Straus, Blosser & McDowell

by Mr. Castle before New
Chapter, Daughters
of
the
Revolution,
New
York
City,

great
clarity by overseas
bankers and industrialists whom

visited

recently

four

pean countries.

All

admit that their

concern

were

about

our

currency - is primar-

One

Selfish

Townsend, Dabney and Tyson

Francis I.duPont&Co. Kenneth Ellis & Co.

First Securities Company
*

Corporation

Bateman, Eichler & Co.

of Chlcafto

Carr, Logan & Company

Ilanrahan & Co., Inc.

C. F. Cassell & Co., Inc.

Euro-

frank to

deteriorating
a

Hill Richards & Co.
A

Baker, Simonds & Co., Inc.

with
do

about

York

How, far does a $5
today in filling your mar¬

Most
that

question.

bill go

ket

,<TT

while

because, I Was

Warned, if runaway inflation OVer-

Morgan & Co.
March 26, 1959

that

would be used ex¬

clusively to safeguard the United
States from world communism.

Foreign aid funds are paying to
over the
desert in South¬

make

This advertisement is not
an

troublemakers

against "West¬
Imperialism."
The United
States builds hospitals in remote
areas—the Kremlin sends native
nurses to inject the patients with
the

turn

story

super-deluxe hotel was opened in
West Berlin.
Cost to the Ameri¬

Billion Annually!

Since

Iraq, after the Communist revolu¬
tion
there
had
succeeded
and
American Marines landed in Leb¬

worse

other de-luxe
5.

materialized.

ern

today is that an aroused citizenry,
led
by the women of America

stop our, superspenders in
Washington
from
brainwashing
and bankrupting our country.

went

aid

Examples of Waste

politicians lose at the conference
The only hope for all Americans

getting rid of 300 million Ameri¬
dollars in Iran.
The money
for a road that led to no¬
where and for a dam that never

can

people of this country absorb
punishment? How long can
stand

million

sucn

institutions

accepted with the terse

was

official comment: "Not enough."

and corruption in the ex¬
penditure of these funds by our
foreign aid bureaucracy
is ex¬

our

in time of war.
pour hundreds
Nehru's India.

into

gift, made at Christmas

last

Our

gance

the

continue

millions

time,

waste, extrava¬

cused, if not justified, by the De¬
partment of State on the ground
that we are fighting Communism.
Meanwhile, the entrenched bu¬
reaucracy
remains
undisturbed
and the
super-squandering con¬
tinues unabated.
How long will

against

We
of

the

Today, this danger from within

can confronts

told

billion

fact

still, slaves of the Kremlin where
from Lenin to Khrushchev, Red
tyrants have predicted that we

braln cashing

PhlIofophy

labor

and

spend ourselves rich.
that

in-

turn

goes

despite

servative in their billion-boosting

the dollar and the enormous Federal deficits continue we will see
aGrossNatmnalProduct of 1,000
bl,1.lon d®Uars-.If that tragic day
?mves, the citizens of our^ conn¬
^ will become the serfs of reck¬
less Polltical masters or, worse

of more than $12 billion. Following this policy will soon give us
less than a 250 dollar in terms of

major portion of America's
minishing resources.

con-

^timates. If the depreciation of

the

women

American

Those who deceive us with honeyed words and promises of a
gjan^ economy that will soon pass
tjle $500 billion mark annually,

galloping toward bankruptcy by spending more than it
takes in-and borrowing to close
the gap—with a deficit this year

States

own

The

various types

United

Government of the

these

into

millions

know

Too few Americans are alert to

the

Philippines
attempt¬

1,000 Billion Dollars Ahead?

may

Galloping Toward Bankruptcy
The

our

you

Some

foreign

This

.™rll.bJ, »

their

r,*

half

in the billions in

the

almost

Castle

treasure,

—

Central
W.

Eugene

ev¬

1%.

millions
to

that

dollars.

has

assured

presently

VVthg stan£ards o£
much

what

will go

omy

re¬

—

erything
own

1939

away

our

sources

1000

are

world

fact that if

'gave

the years ahead.

of the

unaware

amount

We
our

well meaning
President is
•

this

$5 bill when
food store.

your

tunately,

cut

your

over

world.
■;

let's come down to the
present. Our Gross National Prod¬

explains

oped countries

Women

elect

Now,

terms

underdevel-

Poland

directly or
indirectly toward the payment of
the foreign aid bill.
taxes

the

pour hundreds
Yugoslavia and
fact that we
that the Dictators who rule
Communist countries would

continue

$7.5 billion annually.
recently reported that
our government collected $35 bil¬
lion
in
personal income taxes,
from 60 million taxpayers.
This
means that about 20% of each in¬
was

dividual's

into

ing to stop corruption within the
governments of those countries.

astronomi¬

the

millions

and Korea without even

Presidents.

$400 billion!

must

the

for

The American

than

is estimated at $450 bil¬
lion annually.
But unless we in¬
sist upon fooling
ourselves, we

duty to

our

dollar it amounted to

uct today

claimed that it
is

Opportunity

America to Stop Squandering

Providence

his

reached

American
4.

could possibly make us suppose

part
of
our
debt is
nearly $3 billion. Annual expend¬
itures
for
our
global, giveaway
are now running at the rate of $5
billion annually. With the inter¬
est charge the bill for foreign aid

economic and financial health." "It

spend ourselves rich.

can

The annual interest charge

this

now

Nomads

wandering
Helmand Valley
that

cal total of

Recently, Mr. Baruch said:
"Inflation

for

Another

thereabouts.

water

one-quarter of
staggering National

present

our

has

Bernard Baruch's Warning

is
in the
are not interested
in making their desert bloom.
We continue to pour hundreds

is the equivalent to

Debt.

most

our

patriotic Americans,

Hoover

Industrialist, New York City

the

conquer

resorting to

By EUGENE W. CASTLE*
Author and

(1417)

Herbert W. Schaefer &

Co.

Stirling & Company, Inc.

page

The Commercial and Financial Chronicle

(1418)

marginal

With

By .JOHN II. ENGLISH*

Deputy Minister of Trade and Commerce, Ottawa, Canada

Situations

Canadians

wherein

feei

the

cards

them vis-a-vis the U. S. are candidly examined
the end objective of reaching a better understanding of
other's

each

both

countries

and

that

divergent economic interests

their mutual

the future

destinies

in the past the

not

American
shifted

The

our

c e s,

capital

and
how,

s e r v

know

Canada

petitors

well

another

kets

the

country

Rockies

and

the

border. The

Banks

and influences *

coastal

waters

the

hnorl

and
of

flows

border

the

dependent

the

on.

are

which

trade

it. Hundreds of

across

and thousands of private
investors in Canada as well as in
the

States have
of

success

other

side

stake in

enterprises
that

the

celebrated

demarcation line.

brings us to another of the
enduring facts of Canadian-American

relations
two

the

remain
able

time

one

importance
the

was

view

the

population

principal
of

manu¬

Lakes

from

the

States.

heavy concentration
along our common

and
the

for

between

great part of the
the

Our abundant

two

countries.

extend down to the border

ores

points

some

but

mainly concentrated in the

are

some

United

ferrous

newsprint,

our

metals

Similarly

two

and

iron

and

sentiment

countries,
wealth

also

have

trade

ties
with

overseas

notably the CommonEurope. Moreover, it

and

over

...

the

duced

States

and

the

distant

California.

last

economic

export

trade

which
as

fall

many

the

our

The

balance

aspects of

one

between

our

same

the

these

Commerce
raerce

and

the

States.

economic

two

our

large demand for

us.

Canada

V
was

only

many

equipment

capital

have

rapid

ties

refer¬

FINANCIAL

CHRONICLE

certain

are

Available

Write
Edwin L.

immediately in N.

Y, C.

Phone —REctor 2-9570

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

and

\other producing

the

Of;

ing

for

solutions

fq/
/

the best way of deal-;
problems is to prevents

course

with

encouraging economic growth and'4
development on both sides of the:

na-

„

Subsidiaries^

another

Canadians

border.
In this way our
partner
ship will be strengthened and we !

feel

shall be

situation
the

stacked
against
competition with
producers for world mar-

partly

strongest

our

and

industries

export

ex-

however,
channel

through

they

are

their

the

obliged

head

orders
in the

export
office

take

full

advan*

economies are just emerging with!J
surprising; resilience
from
th^ ;
sharpest set-back of the postwar^
period.
In
physical terms
na4:

their

efficient

able

tage of the economic opportunities(
which the future offers.
Our twd *

cards

wholly owned b\
U. S. interests.
Usually they art
given a completely free hand in
competing for export business and

growth

our

popu¬

plants

in
"

course, is all part of the
problem of integrating U. S. sub-

manufactured j sidiaries

diverted
States.

~f ,This, of

types of

Canadian

closely with

tional

output

maintained

was

Canada last year at the same level
in 1957 while in the United

States it declined by only 3%. We
are
now
in the initial stages of

appears

upswing

may

tend

sonal

be
a
broadly
although the ind¬

business conditions

next month

masked

the'

two by normal sea^>'
influences.
In
both coun- f
or

which

this

could

goods.

consumer

have

more than they
selling.
In 1956 and
commodity trade deficit

the threshold of

Minister

economic

ways in
and I

the rate

done,

Last

United

States

was

run¬

$1 billion a year.
this deficit declined to

over

year

$750 million, a figure which still
gives us much cause for concern.
The

reduced

trading

deficit

last

resulted from a lower rate of
Canadian imports from the United
year

States and not from
of

exports.
much

a higher rate
Thus it does not bring

closer

to a genuine and
lasting solution of the problem. I
us

distant^

thei
period of renewed
on

growth.

It appears that f
development may be ;
greater in Canada than

somewhat

in t^e United

States.

speets

still

(1)

we are

some

rC-

tunities

good deal

the

Looking into the more
future, I believe we are

underdevel^,
Offering Canadians oppor- oped country.
We still have a
to buy equity stocks in. frontier in the north and there is
the subsidiary companies operatconsiderable scope for increasing
ing in Canada.
! and diversifying our manufactur(2)
Encouraging and training ing industries and expanding our
Canadian personnel to take an in- service industries. Thus,: if Can- .;
creasing part in the management ada and the United States work.,„
and professional positions in subtogether there will be many: pos~;-j
sidiary corporations.
sibilities - in the future for ex(3) Carrying out more research panding
trade
and
broadening^
work and undertaking new develeconomic
co-operation
between..
us.
opment.
However, the task of fostering.r
this interchange is not alone
(4) Promoting exports from Ca¬
the.^
nadian plants.
responsibility of government.
It
(5) Using as - many Canadian'will require the imagination and,!,
materials and component parts in
concerted efforts of people in dif-,i
•their Canadian operations as can ferent walks of life on both sides
^
be economically justified.
of the border.
vc,

been
our

about the prospects for the perioxln

immediately ahead.

some

economy.

I recently suggested

Canadians have in recent years
been
buying
from
the
United

with

1, 1929-Dec. 31, 1957

Chamf-

cate

surplus if

bers of Commerce are ^doing m^
helping to overcome ingrained
attitudes and ideas which compli-^

of-;-'our economic problems.

ning

Jan.

mar-

opened up great opportuni¬ •think it would be useful to repeat
American producers
of them in this forum, they are:

1957

From

wheat

own

Some

for

States

the

to the valuable work the

sometimes

them
U.

changes

industries have resulted in

ably

122-Bound Volumes of the

economic
relations between our two - coun7*.
tries. I would like to pay tribute

the traditional markets of

are

lation and rise in living standards

COMMERCIAL

room for improving the

surplus

There

try to

Canadian

its

where

; in the United States. The remark-

"FOR SALE"

period 1935-39 to the five-year, United States. It is discouraging, tries consumer spending is one of ;period 1954-58, U. S. sales to to the Canadian export sales staff the brightest
spots in the eco^ >
Canada have increased 8.7 times and to our Trade Commissioners nomic picture. This seems to
sug-1
compared with an increase of 8.3 overseas who have worked to win gest that among our two peoples
times in our exports to them.) these orders to find that they there is no lack of confidences

con-

time

provement in

which arise between
one

?
"
..*■:
^
It is not easy to reconcile th^
.need to follow our sometimes
divergent economic interests witht
the fact of Canadian-American in-i

•

use

the

„

means.

been

undermine

Integrating U.. S..

the form ;or

I have

economic frictions and difficulties
At

^can character and become an jn?.
J* t of the Canadian r com^

years

long run it is
advantage ..to the U. S.

Canada

as much or from the growth
and
development
of
our
two
countries.
(From
the five-year

W^chambe^ oT Com!

United

recent

tions.

raw;, ma¬
States and

countries

Partnership"

cah

huge financial

*A
F
tinually changing as our econCanJian-Unked slatef'Business Confer! omies grow and develop. This is The opening up of new resources -have been
"strengthening the Foundations
in fact the source of many of the *n Canada and the expansion of the United
of
the
Canadian-American
ence

provides about 8%; of
export earnings.
It is

Over

fects

the

panada

them from arising in
the first*
place. We can do this most, efdisposal"5 policies fectively
by
facilitating a bal-!
therefore depends; partly; on the; anced
expansion of the trade be4
avoidance of any disruptive ef-' tween
our
two ' countries r and

fited

another,

relationship is

trade

Canada-United States trade over it is not uncommon for them to
what
the last two decades will show be more successful than the par- based
that the U. S. exporter has bene-, ent company itself; In some cases,,

our

where the one country 1 supplies
almost the whole requirements of

customers

still

bound

kets.

in1

supplier.
We are not financially strong enough to use
the selling methods employed by

its

it by artificial

now

subldiary

tional

little

porter. A look at the figures of

are,

newsprint and cotton

and

ai,d largely thinks iiKe u^
ai® surprised if he does np|
ia£!°. sbare °ur Prjde in Canadiap
achievements and our belief iji
'^Canadian technical skill, manj*
a^ena* ability and workmanship

the net effect is simply to add to
ours.
The
ultimate
success
of

manufactured goods. This system
"

j^e

not always see eye to
spite of the diversifies.-

our

reduce

Canada

for

United
.

advantage

Southern

into

need

and

ket.

so.

decades.

two

sense

Up to

pro-

There

llL

they

^ecai{5e.^!:ie execu-

resources of
terdependence. ..This requi rep
treasury to find markets .some special qualities of min4
to subsidize
exports of which are unfortunately not al-f.American.*V wheat and
flour
in .ways present and it is^-in : this
markets where we are' a tradi- sphere particularly that there. ,i$

warmly welcome ■ these dcvelopments. However, in the case
of manufacturers many duties are
at Prohibitive levels. Half a
century ago ; it may have made
good

Actually
jr'

barriers.

one's output on concessional term,
for a considerable period of time

which have been working for the

are

trade

surprising therefore that
taken exception to the

for

cotton

fruits

trad-

progress

identify them¬

the U. S.

manufactured

imports from the United States—
citrus

the

reduce

total

of the

ring

and

jectives.

In
of

not

perpetuate

the other. In most fields the U. S.
and Canada are both
competitors

Canada

traditional

would

tariffs

trade

ore.

most

parts

goods prevent us from doing

principal

our

multilateral

and

have

].s n°w out-dated, however, and it;

non-

sponsored

and

Annett & Co.

For

growth

Continued

Toronto Stock

Exchange

privately

and

Member

expand

addition,

resurgence

construction.
thrives

institutional

services, municipal and

provincial
HALIFAX

U.S. Subsidiary: Equisec Canada Inc.
Associated

permitted

financial

60 Yonge Street, Toronto, Canada
,•

Stock and Bond Tracers

sectors in terms of investment last
year

MONTREAL

commodity producing and energy

Exchange

Head Office

Company Limited

Despite

year.

tors

last

housing

nation

in
on

the

that
com-

page

220 Bay Street
Toronto, Canada

Te3ephone
EMpire 3-7361

Volume 189

Number 5832

The Commercial and Financial Chronicle

Continued from page 32

the

world's potash

capital — and
volumes of
sulphur and other petroleum de¬
rivatives. Large new asbestos de¬
posits are
being worked; new
paper mills have been built. Sev¬
an eral
components
of
a
petro¬

recovering large

Canada's Great Future
modity producing sector,
remarkably well in 1958.

did

manufacturing

capacity

whose

economy

costs

high

are

relative to sources of supply in
Asia and Europe is admitted, but
on the other hand, North American tastes dominate our markets
and the advantage of ease of servpendent upon any single ^export tee and fast delivery mean somestaple, nor on any single group of thing to the price comparison
commodities, for our export pros- between two products.
In

the

field,

the

1958
and
here again some tribute must be
paid to versatility. We are not in
the position of being wholly derecord

export

equalled that of 1957

chemical

New York Reserve Bank Discusses Recovery,
External Strength of the Dollar and

new

industry

are

Lagging Employment

already

on across the west.

apprehensions about external strength of the
dollar and strong business recovery with slowed employment
hiring response are two subjects analyzed by N. Y. Federal

and

trading world we are moving into,

known around the

are

source

selected

of forest

manufactures.

Few

and
Canada we have to be
concerned about both our export
.prices and import prices. Since
great forest products industry was °ur secondary industries employ
suffering a cutback in world de- about twice what our primary inmand, we considerably increased dustries do, their growth is very
our exports of agricultural; prodimportant to the growth ot eraucts. At the same time that some
ploy men! opportunities in the iuof our minerals and metals were
ture. Our resource industries are
commodity producing export orinations

entec!

are

favorable role.

cast

such

In 1958, while our

encountering difficulties, oUr fisheries were finding larger'markets
While

abroad.

some

our manu-

factured products were encounter¬

ing

difficulties,
unexpectedly came

export

rather

others
to the

fore.

Thus,
where
exports
of
nickel, asbestos, the base metals,
ore declined; wheat, cattie, uranium, aircraft, and farm
machinery stepped in to fill the
This trend is evident

even

longer periods. Some of

over

agri—
cultural products have declined in
relative significance in our total
export trade, although not absolutely.
Meanwhile
products of
the

forest

their

creased

total

are

valued

—

was

or nearly
at war's

end—and produced manufactured
goods valued at over $33/4 billion
comp«pred\vith $1.4 billion in 1946.
Reflecting

the rise in income
generated by this growth in the
western provinces, consumer purchases
cilases

significantly.

lasj.

year

the

retail

were

over

level

have

Retail sales
^4 5 billion

j*55a_ J*®?'compared
fashion

secondary
...

construction

For

sectors.
is

through

capital

and

these

reasons

the

goods

But

our

costs

import costs.
the

not

are

494^

only

fundamental in the process of expanding our markets at home and
abroad. We are moving rapidly

with $2.7 billion
and accounted for 30%

ajj retail sales

there

great need to watch our ex-

port and

across

Canada,

exports.

1 y esM;rn provinces
this point I would like to
make a few observations on the
Western Provinces, for events on
economic front in the West
.

In other

words, there are more strings to
export bow than ever before,

The

forward

momentum

business

activity was apparently
maintained in February, according to the March "Monthly Review"

the

made

striking

Reserve

Federal

Bank of New York.

Steel output

advance

while

strike settlements cleared the way
for

stepped-up production in

eral

other

sev-

durable

important

goods industries.
The

article

re-

construction

that

activity
was
again a source of strength,
continuing near record levels in
February.
An
important additional

stimulus

pointed out earlier, one of
pansion
movers
in bringing from
in

January.

£;

con-

pre-

In terms of actual ton-

in
month since

nage more steel was produced

February than in
May, 1957.
Although

any

total

output and inexpanding
steadily so far in 1959, the accompanying recovery in employ—
have

comes

ment

been

has

been

disappointing

compared with that achieved dur—

jng
Bank

Reserve

ported

economic

seemed

prime
prjme

in-

Growth of Western Provinces

recession level.

will

intense foreign

Another is that demand and output must
siderably expand to bring unemployment rate to its

•■r,.-:..,-

{

ex-

previous postwar business
upswings. Unemployment is still
high for a period in which production is on the verge of, or
even at, an all-time peak. A considerable further expansion of demand and output will be required

coming to bring down the unemployment
business inventory rebuild- rate to its prerecession level. V
about this transformation of the
ing after the deep cuts made last
*
face of the west, has been oil and
year.
Meantime, the near-term
N°tes Exaggerated Dollar
natural gas.
There is hardly a
price outlook has not changed
^
Apprehension
citizen, a local government, or an much. Consumer
prices were virIn another article, "Toward a
industry here which has not felt
tually
steady
in
January
and Stronger International Payments
the impact of these large new- wholesale prices, which had risen System," the "Monthly Review"'
found resources. And the very seasonally in January, tended to noted a marked improvement ia
fact that it has had such an im- ease in the first two weeks of the international liquidity of inpact on the west is indicative of February.
dustrial countries abroad and a
r1g

mi® a new kind of giowth cli—
mate which involves reseaicn and
technology. An age of petrochemicals, plastics, electionicsj
™iclear physics, and space ma- the lusty and dynamic growth of
chines will place a good deal of this early period of its history,

ports. In such fields as
rubber, chemicals, aluminum, iron
ore, oil, gas, and asbestos very
large gains have been made as
shares

but

nearly $800 million
five times what it

grown

employers

comparison,

fuels

consistently

competition.

•

emphasis on technology and re- The crude production section of
total exsearch — an area where we in the industry is, relatively speaksynthetic Canada have yet a long way to go. ing, a youthful part of the Cana-

have

mine

and

our

moor

and iron

gap.

light

relatively

and

One of the conclusions drawn is that

have to learn to live with

minerals

{

Reserve Bank.

j have referred to this variety
of developments because they
highlight the diversification of the
western region of Canada. The

nn«c«™,
nf
four western provinces received
<ujues n OI ^wsls
$1.4 billion as cash income from
There will be a good deal of the sale of farm products last
emphasis on costs in the type of year, but they also turned out

world

-j.

Some exaggerated

established. Uranium City and the
South Saskatchewan Dam mark
yet other developments — and so

products, agricultural products, mineral
products, fishery products,

pects.

(1437)

dian petr°teum industry and we

cannot expect to have come so
far, so rapidly, without the grow—
ing pains which accompany such
feats.

In January, however, as in the
preceding several months, there
was
little improvement in total

strengthening of the international
payments system in general. The
apprehensions of only a year ago

unemployment

that the United States recession
would necessarily lead to a severo
and general international payments crisis not only did not ma-

employment

apart from the usual seasonal developments.
Since September
nonfarm employment (seasonally

adjusted)
reau

measured by the Bu-

of Labor Statistics has risen

average

rate of 50,000 per

terialize, but foreign gold and
dollar holdings rose by a record
$4.1 billion, largely as a result of
transactions
with
the
United

seen in this light, oil has been
.month, only about one-third as
great contributor to our postwar much as in the earlier months of States.
:
export market is a different pro- " C,, " *■
-growth. ' It has suffered a set- recovery. Since most of the tern- < The decline in the United State®
nosition
from
diversification
in
The ushering in of new re— back just as the national economy porary holiday jobholders withgold
stock,
together
with
tha
the domestic market. In the first sources, the attraction to invest- has, but it will surely recover and drew from the labor force in Jansharpness of the cutback in United
instance, the world is our market ment, and the burgeoning of in- grow
if its course of action is uary, the increase in the number states exports in 1958, has given
and we have the resources and the
com®» a?e paJ* an(I Pal'cel of the jdanned with a broad vision of of unemployed persons was less r|se
some
concern
over
the*
technical skills on our side
Tn the
broadening of the industrial base the future rather than being based than half the drop in the total
our

diversification in the

course

typlcal oI the Canadlan
.

costs

both

mark

against

scale of the market. This accounts

for the fact that

billion

75%

over

annual

our

import

bill consists of purchases of fully
manufactured goods, while a fur¬

additional

ther

partially

consists

manufactured

is"

This

not

should make everything
but

there must be

dreds

Canada

size

economic

need

markets

manufactured

ucts which have
the

literally hun-

developing

for

goods.
that

suggest

which

prodalready reached

will

oi our natl°nal economy.

The

us.

fundamental difference lies in the

warrant

run.

deal

from the manufacbeen made in this
turing sector through to the servready. New products and proc- icing sector, new opportunities
esses
have
continuously
been have opened up. These are rnaniadded to the list of things we can fest in the new pipe mills, the
do.
Polyethylene, titanium pig- new plastics plants, new fertilizer
ments,
synthetic fibres, carbon facilities and in the stepped up
j black, and a myriad number of tempo of business in a hundred
production bits and pieces have prairie towns and cities. One of
helped to add over 300,000 jobs to the largest aluminum smelters in
our manufacturing industry paythe world has arisen on the West
rolls since the end of the war
Coast; the world's second largest
which, in turn, had grown by over source of nickel is being devel400,000 jobs during the war years, oped at the eastern extremity of
That
there
are
difficulties
in- this region. And in between, there
Volved
in-*" expanded
secondary is developing what may become
good

progress has
direction al-

—

can saY

investment.

The Jesuits of such a program
have been better transportation
of traditional trade contracts built facilities, expanded and greatly
up over the years with foreign diversified industrial plants, more
suppliers.
Others are unknown irrigation, large new power projbecause of limitations of knowl- ects, thousands of miles of field,
edge imposed by lack of detail in gathering and oil and gas transour
trade statistics.
In any of mission lines, and — above all—
these instances where the Cana- expanded job and income oppordian market is a growing one, tunities.
From 1947 to 1958 inmuch could be done to fill in the dustrial employment (outside
fabricating gaps in Canada's sec- agriculture that is) has grown by
ondary
manufacturing
industry 70% in Alberta, and the oil and
Without begin accused abroad of gas industries have had a stimulating impact in this regard.
being poor traders.
A

Before

concluding,

perhaps

brief word about the
economic movements at work in current economic outlook. In my
this region. Ten years ago, capital opinion, 1959 will be a good year
investment in the four Western for Canada.^ Last year was one of
provinces totalled nearly $1 bil- both recession and partial recoviion
annually.
During the past ery for the Canadian economy,
three
years,
new
capital sums Today we are on the upward path
almost
triple that figure
have and this trend can be expected to
been invested annually. British continue. Taking all factors into
Columbia has been investing on consideration, I think we can look
an average over a billion a year forward to an increase in the volthroughout this more recent penational output of ,3 lo to.
riod, and Alberta is fast approach- 4% — a rise about equal to the
ing a similar annual scale of postwar average,
A few figures lend weight to the

Many of these opportunities are not seized because

c"llent Economic Outlook

hfe have redirected the course

have rising

„

across the country - indeed, be- upon any short term expedients. employment. The seasonally adcause of oil and gas, developments
r,Fcnnnmic Oiitinok
justed unemployment rate was

domestic market, we have skilled
labor
resources
and
access
to

capital.

All the

way

The

factors

which

are

unchanged

virtually
level

near

6%,

the

which it has remained

since November.

external

...

With the employment situation

slowly to
the strong expansion m business
activity, more than usual attention is being accorded to the vanous statistics of employment.
The

still

responding

only

dollar
that

ing themselves out of the worldl
Commenting on such aswhile

jjve

of the

have

that

wRh

exaggerated*
the United
learn

henceforth

must

tense

been

clear

seems

states

article noted that
apprehension®

the

some

seem

considerably

foreign

revitalization

competition.
of

foreign

in-

Tho

econo-

mjes that this change reflects has

keen

article discusses at

Reserve Bank

the

assertions

market.

Recovery
..

led

United States products were pric-

sertions,

Lagging Employment Behind
„T>J,

strength

has

and

one

united

the

States

principal aims
postwar foreign

differences be- ec0nomic policy. Last year's detween the two major sets of labor cRne
United States gold stock*
market data, one gathered by the
most United States Census Bureau and however, can in no sense be resome

length

the

garded

run

the

dollar,

likely to contribute strongly to the other byttio Bureau of Labor
Most countries financed their 1958
the upward trend are an increase Statistics (BLS).
gQ^ purchases by newly gained
in consumer spending and a reIndustrial production continued d0nar balances rather than
by tha
building of business inventories, to advance in January, according
Forecasting the trend of our ex- to the article. As 111 the preced- liquidation of existing assets. In¬
ports is always difficult, but there ing month, there was a one point deed, foreign countries continued
the aggregate to increase thehr
are grounds for believing our mer- rise
in
the
Federal
Reserve dollar holdings by still another
chandisc exports will move up Board's seasonally adjusted index.
billiom
slightly in 1959. Capital invest- After climbing steadily from its
ment by business will not be an low
point last April, industrial
expansionary force as it is hkely
production in January was only
With William Fuller
be down somewhat from the
11/2%
beneath the prerecession
(Special to The Financial Chronicle)
1958 level—especially in the first level.
The
favorable ° trend of
half of the year. However, .capiCHICAGO, 111. —Daniel CL
tal formation by governments is production was apparently maintained in February, according to Trinkaus is now connected vvith
J^x^ts^a favorableTacto^here the Reserve Bank. Steel output Wmim? A. Fuller & Co., 208
South La Salle Street, members of
marked recovery trend now scored further impressive gains,
averaging 84% of capacity during the Midwest Stock Exchange. Mr.
GvidlnTfn the Unhed States
e™ent in the united states.
the month compared with 74% in Trinkaus
was
previously with
Stone & Webster Securities CorMay I reiterate that I expect
the current year-to be a good one,
with national output being up line that "if." The future will ,be porat,onboth in volume and dollar terms. what we make it. We are richly
John A. Stewart
However, unemployment and ris- endowed with human and mate^
.

JpS prices are likely to be a continuing problem.

May I conclude with a statement of faith. A great future lies
ahead for this nation of ours if we
take advantage of our opportunities—and perhaps I should under-

rial

resources

which

should

en¬

world. True,
we
have problems, but intelli¬
gence,
imagination, h&rd
and self-discipline will enable us
to remove the obstacles 011 the

able

John

to pace the

road of progress
.

Stewart

passed

March 14 at the age of

brief

illness.

Mr.

member

ing
„

away

75 follow¬

Stewart
the

New

ajnemoer 01 uie iNew-

Yprk Stock Exchange for 54 years.

The Commercial and Financial Chronicle

(1438)

Continued

from

page

out of

The Alternative to Inflation

Gas, Electric Light & Power Company

Growth

regardless of productivity
result in greater demand which in

Tucson

Gas, Electric Light &
supplies
electricity
and
natural gas to the City of Tucson
and environs, and electricity to
a
nearby
rural
area
about 50
miles in length. At the end of 1957,
the company served about 64,000
electric and 54,000 gas customers.
7;, It is located in one of the fastest
growing areas in the country. In
the decade ending 1957 population
Power

in the Tucson

increased 78%

area

220,000,

and the number of
customers gained 127%.
Studies
made by the company and the
Arizona
Industrial
Development
Board.' forecast annual gains of
10-12,000 new residents annually
for

time to

some

come.

The pro¬

jected population for the City of
Tucson (only) for 1975 is 500,000.
The company's 1957 report stated:
"Although Tucson is influenced
by national economic conditions
feel

that it

is less

vulnerable

to such effects than other sections
Of The country and that growth of

industry,
tion

commerce and popula¬
continue at spectacular

will

rates for many years. Some evi¬
dence of this is the fact that there
has been

reduction in the pro¬

duction of open pit copper mines
from which the company derived
7.8% of its electric revenue dur¬

ing 1957. In fact additional explo¬
are
being made continu¬
ously and we have every expec¬

rations

tation that

mining sales will

our

Continue* to

'Continued

increase.

Stability Of the' company's

revenue

is indicated by'the fact that 67.4%
01^ total 'revenue was from resi¬
dential, and

commercial

electric

and gas service during 1957."

11958, -while met'income rhas
risen 'from $730,000 in *1948 'to
Share

earn¬

ings and dividends have increased
in

every year since
1958 when4the

1950, except
earnings based

On average

the

shares remained about
at

same

$1.13. After adjust¬
2-for-l splits in
1948, 1953 and 1959, the price of

ment "for

three

the stock has risen'from less than
- to
a
recent ^high
of

4 in *1948

around -31.

While

the

principal

attraction

Of the Tucson area is its
and the tourist
industry

climate,

and ir¬
rigated farming have been major
activities along with some

mining
refining of copper, manufac¬
turing industries are beginning to
and

move into

the

breakdown

available

revenues

customers

gas.

between

not

yet

Hughes Aircraft Companies
operating there, encouraged
perhaps by location nearby of two
large Air Force Bases.
Tfle

company generates about
76% of its output from steam gen-

28%.

28%

industrial

Authority

contracts.

with

Arizona
which

The

company has
been able to increase its
efficiency

sharply in recent
stallation *of new

years

steam

in¬

plants.

Thus'in 1957 the number of Btus
required to produce one kwh. was
12,424 compared with 15,203 in

1953,
cost

saving of 18%; production
power

5.5 mills to

Line

4.4,

losses

was

reduced
also

from

137,000 kw.

despite the industrial
its,possible effects

and

c?pper mining, peak load in
2958 increased 12% to
152,000 kw.

not

rate

historic

our

growth, even" though

offers

higher rate is difficult to attain.

Let

Better Plan

first remind ourselves of

We cannot do

magic number indi¬
that those who tell us

the

fowth only by working for it.;

WATERBURY, Conn.—Rudolph
associated

Baker

West Main

with

Stock

And. I believe
the
country considers the President to
be

the

most

competent

Investment/ in

Exchange,

The bond

business will

suffer irreparably.

Rising prices, forced by higher
will have a serious ^effect

best

and

Let

then consider

of governmental

the

kinds

spending that

are

both

pertinent
and
critical
to
growth. Those types of Federal
outlays alone have increased five

trade abroad. Any slacken¬

ing of
a

our export business, means
lowering of employment and a

lower

level

economic

strengthening

among

management.;

the

our

activity.
•

really

hear about

vide

funds

joining Amott, Baker & Co., had

fields,

pro¬

mentioned will mount to the point
where the public will revolt, and

several

grams, have increased over 200%.
Federal
spending for highways

demand Government controls. We
know from past experience,-: that

has

economic controls of the war-time

variety,

technological

years

experience

the

investment business.

staff

East

Sixth

Walston

spite of what

our

failure to pro¬

boom

research

and

deflation

that

happen,

for

development,

the

facts

are

since 1955 Federal outlays in these

exclusive

defense

risen

nearly

Joins Walston & Co.

during the same years
400%.
Federal spending,

exclusive of research and develop¬

Co., Inc., 127

ment, on aviation and
ploration, has gone up
since
rose

over

ex¬

200%

creates

the

Herbert V. B.
ner

Yarnall,

Philadelphia,
March 14.

Gallager,
Biddle

passed

part¬

away

Co.,
on

wise

already

poorly.'We

know

designed

are

Outlays for education

remedy. I speak feelingly on' this

subject,

because

Reserve

during

for

health

17%.

rising fast.
the

1953-54

years,

the

public

instance,
1958-59

school

state

and

ex¬

local

governments, excluding Federal
aid, rose from $8.7 billion to $14
.

had

the
to

the

Federal

use

natural

resources,:

particularly water.
(7)
Encourage
expansion
of
international trade and economic,
.

growth throughout the free world.'
(8)

Keep

educational

they

administer

billion.

inequities

centives

ills

flict

penditures

not

does

the

Meanwhile, state and local spend¬
ing in most of these areas has also

school

the

this

under¬

pinnings
of
growth,'
through urban redevelopment and'
highway construction, support foreducation and welfare and through

that in peace time they have eco¬
nomic
consequences
worse. than'

been

Herbert V. B. Gallager

danger: of

work

from

Street.

the

bust.

and

1955.

46%

space

The,**"inflation

prop.

forces,

the
economic

you

1955.

Strengthen

(6)

business in Waterbury.
Mr. Maiette is a long time resi¬
dent of Waterbury and prior to

since

-4", *

•

constructive

economy.

dependable

the

ture capital to small business, one,

fold

with

(5) Encourage the flow of ven¬

fold since 1950 and close to three

served

competition!

businesses, and eliminating,

United States Navy during World
War II and for the past 12 years
has owned and operated his own

Folio

flexibility

selfish practices of both labor and

Finally, and perhaps most im¬
portant, inflation at best is not a

Mr.

the

free economy, by such means

our

011 our

Increase

(4/

wages,

informed of all.

Amott,

Co., Incorporated, 51
Street, members of the

York

encouraged.

authorities.

Folio and Louis Maiette have be¬
come

ill-informed spokes¬
fixed income securities will cease,
men in
Government, business or and
economic
growth/ will be
labor, but by the most competent hobbled."
seekers,

With Amott, Baker

reduced

tained in 1958 when a new
75,000
kw> unit was scheduled for
oper¬
ation. A similar unit will
be in¬
stalled in
1960. Peak load
in¬

recession

average

shares).

(Special to The Financial Chronicle)
additional saving in
costs of nearly 3%. Further
effi¬
MEDFORD, Oreg. — John W.
ciency gains may have been ob¬ Harbison has been added to the

economic

already
questions.

creased about 17%
in 1957; and

with

two

should

from 10.6 in 1953 to
7.8% in 1957,

effecting

content

and

decrease of 20%.

were

ex¬

•

registered representatives.

Power

not

has

will

think

plan for economic

where the risks are so
high, and the cards so stacked
against us.
///
What, then, is a better plan? /pr¬

•

New

the

consider

would

one

so,

were

have

the first

answered

of another

economic

difficult to

It is

Orating plants and purchases the
balance (hydro) from the Bureau
and

for

this

Now,

produc¬

correct

means

injustice.

our

it, though, by "some "something that is often overlooked r
simple expedient, such as hiking in this
argument.
We are not
government outlays and rumiiiig short on the means for economic
and miscellaneous 3%^ Gas reve¬
cates to me
big government deficits. It: is hot expansion. The frontiers that are**
nues
were
56%
domestic, 15% we can reach it by the simple that
easy.
Government ■*• has 7 a
just beginning to be opened to us'
commercial and 29% industrial,
process of throwing off budgetary definite role, a limiting or condi¬
by science dwarf to insignificancer
The company has been fortu¬ and
monetary restraints, do not, tioning role, in helping to create the historic American frontier of '
nate in being able to take care of
in
the right atmosphere for economic
fact, believe what they say.
open unused land. We have un-f
its construction program without
/ ■■.. \rV- *- •
' leashed the force of the
They must know it is not that growth."
atom, and
much
equity financing and re¬ easy, that real difficulties are
But must we, nevertheless, call!
we shall soon be able to put it
in]
sultant dilution of share earnings.
involved,
that
an
increase in upon inflation as a stimulant to practical harness. iThe use of solar !
With a relatively high equity ra¬ incomes is not
necessarily an in¬ economic growth? The answer is
energy may be an even more im¬
tio (40% in 1951)
the company crease
in
production,
because, no. Moreover, the answer is that
portant new source of power. Be-'
did not have to issue additional
among other things, no one can v/e not only do not need to call
neath, the thin outer crust of the'
stock in order to raise the equity
predict how the incomes, will be upon inflation to stimulate eco¬ earth .that we. mine/today, lie'
ratio and lower the proportion of used. It is
only out of production nomic growth, but we should not much
greater mineral "treasures/
debt, as so many utilities had to increases that we can get a real do so.
J'... *
•
"•//' for us if we can learn how to
get '
do. Without adjustment for split- increase in
economic growth.
at them. Other vast, almost unups,
the company issued 66,000
Why There's No Cure in Inflation
touched stores of minerals are at
Those who claim that incomes
shares in 1949,
140,000 in 1952,
Before we discuss the construc¬
hand in the rich chemical broth:
should be increased by Govern¬
100,000
(originally planned for
tive measures that could give = us
of the seas. We can only, guess
ment spending seem to ignore the
200,000) in 1957, and 120,000 late
more
rapid economic growth, let what the
exploration of space will,
in 1958. As construction expendi¬ fact that Government outlays are us
consider why we do not want
bring forth. Technology is invent-*
tures will be relatively
low in growing at a rate in excess of 5%
inflation, as a policy partner in ing new materials and methods,
a
year. They are increasing at a
1960-61, it .is possible that the
the process.
The inflation I am faster than we can
rate far
beyond even the high
put them to.
company will
be able to defer
discussing is long-term, accepted their best use.
Beyond the coun-!
further sales of common stock un¬ estimate of the Rockefeller Eco¬ and
expected as a way of life, a tries of
the, industrialized west,„ ai
That is particu¬
til around 1962, when construc¬ nomic Report.
persistent rise of prices in gen¬
third of humanity exists in free,
tion
expenditures will increase larly true in non-defense spend¬ eral. We are not concerned-: here
world nations that need develop¬
ing. In the 2V-> years from the end
sharply.
'
with changes in particular prices
ment. 4 / 7/ /.
of calendar
1957
through fiscal.
'|7!4 77.../•: '
As a result of the large units
which are reversible; responsive
We do not live
in a time of
1960, Federal,
State and
locaL to our
now being installed in relation to
changing needs, desires and
shortening horizons, "but rather in'
spending, excluding foreign aid
total capacity, there will be a gen¬
tastes. In the Rockefeller Report
and defense outlays, will increase
a
time of explosively retreating;
we-said that "reasonable stability
erating reserve next year esti¬
horizons. .What we most need is
mated at nearly 50%, but this is by 8.5% annually, in the terms
of
the
consumer
average
price the wisdom and the
of 1957 prices.
Since fiscal 1957
spiritual qual-'
level should be explicitly recog¬
expected to drop to 35% in the
our major
■ities to manage our affairs proper-national security out¬
following year.
The substantial
nized as a high objective of na¬
lays have increased 6%. All other J
reserve is due to the requirement
tional policy by a Congressional ly in such a world. Where ecoFederal programs. together havenomic
growth is concerned *we'
of being able to take one large
declaratory Act, preferably
risen 33%, since then.
must
realize
we
: can
This rise
achieve;
generator out of service at any
through ' an amendments to the
is
from
an
increasingly
large
time for overhaul
and
mainte¬
Employment Act." 4*v.;V f;;
base.
By any standard, it Would"
e cannot wish economic growth
nance;
Rapidly rising prices,hurt those into
appear that governmental spend¬
being by way " Of deficit'
While the gain in share earn¬
ing is doing more than its share. least able "to defend themselves. financing..,;..
;
' h
ings may be a little slower over It should be
governed entirely In its simplest terms, inflation is
A~ program' for an expanding'
the near-term future because of
by our defense needs and should a cruel, unvoted-on tax,; levied Economy must be realistic. It must'
the rather substantial equity dilu¬
not be subject to restraints or upon all who are dependent; on -include
!policies 'that *will:
;•
;
tion in the past two years and the
This ;is -a
con¬
spending pressure unrelated to fixed -incomes.
substantial excess capacity over
4 (1)
Encourage -initiative .and,
number
of people,
those needs. The use of defense- siderable
as
immediate
requirements,
share
saving
and
invest¬
outlays to achieve economic well as institutions. - It produces enterprise,
earnings may not increase quite
inequities,
confuses -and ment, and give reason for con-,
growth is not the right way to get gross
as fast as in the past.
However, either defense or
falsifies the economy. History. .13 fidence in our future growth and
growth.
assuming that company is per¬
full of the disastrous results of prosperity..'
>
J
In its national
defense study,
mitted to maintain its rather lib¬
unchecked
inflation.
We 7 have
(2) Use the Government's fiscal
eral rate of return earned on in¬ CED said that where the security,
managed to create an economy in and % monetary \ powers
to
con-:
vestment- (about -7.7%
in 1957) of the nation is concerned, "we can. which
a
greater
proportion of tribute to growth by aiming al-:
the common stock should be able afford what we have to afford."
people than ever before are in the ways at high employment, but at
to maintain its position
in the So long as we are not in a shooting possession' of some
liquid assets. the same time setting our sights
ranks of "rapid growth" utilities. war, or some other crisis demand¬
"Savings built this country/' says on
reasonably
stable
consumer,
At the recent over-the-counter ing a precipitous rise in defense
Secretary Anderson; "If. inflation prices.
: /
price around 30, paying 760, the outlays, we should be willing to is allowed to
continue* people, will -4(3) Reform our tax system
in;
stock yields about 2.5% and sells pay the cost out of our current
become less willing.to save, total
ways that reinforce incentives for"
at about 27 times the earnings of incomes. What we have to afford
savings will drop, speculation will
should be decided not by selfgrowth.
; *'
; - ;
,
$1.13 for 1958 (based on
commercial

are

Reclamation

tion.

increased

for

The Douglas

area.

calls

turn

1958, but in 1957 picayune ambition. Why not 6, or
residential sales provided 37% of
8 or 10? Pick your own number
electric revenues, irrigation 4%,
and let's take off. The choice of

and

about

were

32%

and

classes

1958

electric

ourselves

i
As the result of rapid popula¬
tion growth the ► company's reve¬
nues
have
increased from $4.2
million in 1948 to over $17 million

$2,632,000 last4 year.

Revenues

68%

than we pro-:/
policy of

the

pansion

think

comes

winding.iip losing
the

To Expand

economy

rich, we risk
freedom of
political choice, and with that loss,
spending

Utility Securities
By OWEN ELY

Tucson

oui

and

duce

Public

Thursday, March 26, 1959

and

for

the

and
going,

scientific

revolution

growing, by.strengthening in¬
and

providing necessary
facilities

and

funds

basic research.

)

(9> Reduce and ultimately elim¬

Korean

con¬

inate

establish

and

areas

Governmental
where

spending iii
enterprise

private

credit

controls affect¬ can do the job better.
*
housing,
automobiles
and
Some
of these ^policies would
appliances. Only in a period of require increased
spending by the
war,
or
in
the
gravest
crisis; Federal
or
other
governments.
should they be resorted to. «•
'
They would, however, use
the
If we set out to chase the will- power of Government to tax and
o-the-wisp ambition, to get more spend for objectives that would
.

ing

Volume

-stimulate

our

main

role

spending

and

It is

wise,

fiscal

mone¬

nadian

his

beyond

million

income

Without going bankrupt. This applies to a nation, as well as to a

business

individual.

non-cumulative

pref¬
(£1 par) and $476.8

stock

erence

the railroad

stock.

accrue.

billion

t^ie interests of these people

(2)

/.•

economic

Pacific

Airlines,

development and freer trade policies

Adoption of
ure

•.

that

announced

monetary

meas¬

designed to support recently

liberalized convertibility and
trade

Canadian

abroad

moves

and

assist

subsidiary,

would get a franchise to operate a
limited transcontinental service in',

ment.

move-should
establish

with
Trans-Canada
owned by the Govern-:

dire

Unsold

the

Insurance fund

recognize

necessity

the

for

Deferred

government spending more than
its income. However, that course
cannot

credit

our

the

and

value

and fiscal

t2,113
$10,404
$20,409

liabilities—

$604

$G04

Deferred

liabilities—-

398

States

Deferred

credits

for

accounting for

ciation,

stodir

6,228

1,022

;■

973

2,075

check while

Govern¬
Shareholders

$nd urge

pursued here at
urged by the 51
members of the Economists' Na¬
tional
Committee
on
Monetary
economic policies

$11,325'

equity

The President of the or¬
ganization is Professor James W.
Bell of Northwestern University
and the Executive Vice-President

°Tiiis,estimate is based on 880,300 acres

trust, selling at
discount

described

with

office in New York

invest¬

!;,I

that

know

apparent

the

crisis

Middle

munists

East.

their

have

are.

real: zed

time

Berlin
the

per

com¬

consider¬

standard

book value

$6,780 and an appraised value of
approximately $9,000. In compari¬

the world.
If

during

the

Cold

long episode of
permit them to

it
co

We have the resources, we

have
know-how, we have not yet
lost the pioneering spirit, and I.
convinced

our

economic and financial

lems

that

prob¬

million

from

book

rights-separately
,t'

em.

value.

its
an

/Nevertheless,

not

;'-1

carry

income

from

of .$331,000

Gas

resources;

also,

With First Eastevn

;

•

RED

BANK,

John

—

Kortmulder has recently been ap¬

pointed

to manufac¬

transport.

First Eastern Investment Corpora¬

involved,

Kortmulder

Holland

and

been

this

used

view

figure

cl'

in
the

should

the

foregoing
huge acreage

prove

.graduate

of;
the

Hogere

Behrens

York

City,

1953.

McHugh
&
Co L
115
Broadway, New York City,I mem¬
Lenart,

bers

of the New York

Stock

Ex¬

ship

and

Denis

McMahon

1.75

3.77

Keller & Co. Adds

2.95

1.50

•

1.94

1.50

2.05

1953—,

tively. The last mentioned figure
is equivalent to $3.75 per share.
Another

1951.

^Estimated
of

revenue

SlOO

2.98

l--*~

1930

and

1.50
-

including

subsidiary.
Canadian

oil

(■'.

1:75

and

gas

•

Pacific

the

the purchase of

Pacific Convertible

Canadian

security is currently quoted around
102

(the call price to Dec. 1,
is

1961)

convertible

up to June 1,
into 30 shares of Ca¬
Pacific, common, for each

only

nadian

par

£k>. 52Va.

improving

BOSTON, Mass.—Alien D. Taradash has joined the staff of Kel-' from the
-

political

climate

company's point of yiew

brought about several encouraging

so-called
be

restoring gold to its
proper place as a domestic and
international money."
by

The resolution goes on

"The

countries
the
of

taken

steps

leading

Western Europe and

Kingdom at the end
their currencies

United
1958

to say:

make

widely' convertible at of¬
exchange rates constitute

ficial

and signalize a stronger
for' various4 European
currencies and sterling.
The ac¬
companying fiscal reforms and
monetary
adjustments, for ex¬
ample in France, should facili¬
tate the lowering of trade bar¬

the international clearance
the movement of
goods, services, and capital. Re¬
sulting strength and confidence in
Western Europe ancT the United
Kingdom should make possible
the restoration of full conversion
riers,

of accounts, and

for

rights

effect, this is equivalent to a
the stock for 15 months at

of paying

Instead

for

for these collateral
Pacific

Canadian

per¬

petual 4% consolidated debenture
stock, currently quoted on the

Each

91-92.

With

Exchange around

$100

collateral

by $120 of this 4%

trust is secured

consolidated

debenture stock.

many

equities

20 to 30 times earnings

their

values

selling

fractions

but

and having

market

values,

Canadian

Pacific, common, offers an excel¬
lent

participation

growing

economy

in
as

Canada's

well

hedge against any further devalu¬
ation

of the

holders

all

these

currencies.
Would

End

Handicap

and

full

the

longgold'

incongruous that
citizens, who may

States

freely purchase gold, for instance
in Canada

in the London mar¬

ket, cannot hold their gold bars
in the United States on pain of
criminal penalties.
)
"We urge the restoration now
of gold to its traditional and his¬
toric

role

and

the

best

domestic,
interna-:
tional, monetary standard by ef¬
as

unchallenged

fecting complete convertability at
$35 per fine ounce, and the shoring-up thereby of our domestic
economy and of the foundation of
international trade."

A & P Shares Offered
At $44.50 per

secondary offering of 1,800,000 shares of common stock of.
The Great Atlantic & Pacific Tea
A

Co., Inc., was made yesterday,
(March 25) by a nationwide un-,
derwriting group of 253 members
headed

Loeb

by Smith, Barney & Co.,

Morgan
&

Stanley & Co., Kuhn,
Co., and Carl M. Loeb,.

Rhoades

stock

The

Co.

was

priced at $44.50 a share.
The offering does not consti¬
tute new financing by the A & P
and the company

will not receive

of the proceeds from the sale
the stock.
The shares, com¬

any

prising approximately 8% of the
21,635,906 shares outstanding, are,
part of the A & P holdings of two
individual shareholders, Hunting¬
and

Hartford

ton

Marie H.

Rob¬

ertson,
descendants
of
George;
Huntington Hartford who founded '*
the A & P a century ago, and of
several trusts created by them. J [
The company

have

sors

retail

been

food

and its predeces-'
engaged in the
since

business

1859.-

Today A & P and its subsidiaries
conduct this business through ap-,

proximately 4,200 retail stores lo¬
cated in 37 states, the District of
and Canada.

Columbia

refuse to reestab¬

time-honored

Uncertainty

high

and

World' economies would

'Free

$1,000 bond.

.^Special to The Financial Chronicle)

is through

mon,

the

old

stock 4-for-l and paid dividends:
equivalent to $2.50 on the present shares.
In that year the new $25 par stock traded

Co., 31 State Street.

Collateral Trust 4% due 1969. This

book

split

acquiring

way

interest in Canadian Pacific, com¬

1.50

2.61

1952—

ler &

stepped up to $56 and $52.9
in 1956 and 1957, respec¬

million

i:50

partnership.

1953
been

New York Stock

3.11
—...—_

change, on April 1
will admit
Sidney Polay to general partner¬
limited

These
have
averaged
million per annum from
to 1955, inclusive, but have

trusts

1956

1954

Atchison

a heavy cash flow be¬
large depreciation

The security

1955

—.

for

The company

call, these collateral trusts pay the
owner 3.9% current interest (less
15% Canadian withholding tax).

$1.50

1957

Lenart, McHugh Partner

$33.33.

per Share

''$2.75

1958..——

15%

the

be strengthened

aided

position

Dividends

Earnings
per Share

for

progress

call

New

ratios

current

1960

Arriving at a per share equity
of $67.80, the 4% non-cumulative
preferred has not been considered

Burgerschool, Rot¬
terdam, and the University for. because it has no claim on earn¬
Economic Science, Rotterdam.
ings beyond the 4%. If the pre¬
Prior to joining First Eastern,
ferred stock
were
included, the
preceding
figures
Kortmulder was Vice-President of immediately'
K. A.. H. Behrens, Inc., an im-. would
be ; diluted ;by
approxi¬
porting, and - exporting firm of mately 17.7%.
Hamburg,
Germany.,. He- estab-.
STATISTICS (CANADIAN $)
lished a branch office at 52 Wall
Street,

before

Union Pacific.

and

native

it will
the $1.50 divi¬

share,

per

with

gross

underestimate.

tion, 157 Broad Street.
1 Mr.

has

llion I

calculation.

ada.
The stock is selling at ap¬
proximately 11 times estimated
1958 earnings,
which is in line

refine and sell their prod¬
b -products,
and
derivatives.
The
19:8
balance sheet will, of course,
re.ycaJy
the value placed upon these properties.
In
tin
meantime,
an
arbitrary value of 10
times 19.57 earnings before taxes (or $84

Sales Representative of*

•

fully

and

ing currencies of Western Europe
and the United Kingdom would

$34:6

1957. a
from 1956, Canadian
Jan:. 3, 1958, incorporated a
wholly owned subsidiary, Canadian Pacific.

ture;

-•

current. price

redeemable
currency at the present statutory
rate of
$35 per fine ounce of
gold," contend that, by so doing,
"the recent
steps taken toward
wider convertibility among lead¬

charges.

* on

other mineral

dend

generates

amounted to $3.4 million in

taxes;

yield 5% based

cause

petroleum rents, royalties, 'reservation fees
and land .rents, befdro provision for income
decrease

the

and

its

balance sheet,
estimated value

net

\yould buy $5,200 in

values.-

non-resident tax withheld in Can¬

uces,

Union Pacific
book

Developing, and "operating oil jiud gas and.

of.

$21^

Ltd.,, witir power .to., engage inciio ' b si e ss of-, prospecting' for; acquiring.

by following sound policies,
;

$193.5

"coihpany does

the

is difficult^ to. -assign

Oil .&

with the courage which has made

this country great.

amounts

million

$14

solve: Pacific,

can

value

tSfhce
oil

the

estimated
,

book value of only $1-7 million.
Adjustment has also been made in the
rases of Minneapolis, St. Paul & Sault St.
Marie -RR. holdings and Wisconsin Central
RR; bond holdings resulting in a decrcasoagainst

into frightened orgies

unsound

spending, we will be
playing right into their hands.
■r

which

;haros

■

this

War

stampede
Of

lands,

been

Jiave
been
adjusted
to'
qiarkct value where available and possible.The largest" difference lies
in tbc present,
narlcct
value
of.; Consolidated
Mining

another in the various parts of-

farm

has

acre..i

'Investments

will
Continue, as we have for the past
decade, to face crises of one sort
way,

the

for

hinberlands"

and

City, in urg¬

estimated

demanding of the Congress., during^ 195,7 repcrted by the. company,
that outf government follow the: incliuled, 34,142 acres of timberlands andson, a $2,300 investment in Atchi¬
23.734 "acres
of farm
lands.
Total
net'
sound course; rather than continue
son
would
proceeds from these sales in 1957 amounted
buy $4,500 in book
down the easv-road of spending.. co $7.6 million." Since $10 per acre vasvalues and a $3,700 investment in
v.

organization

national

which has its research-educational

ing that the United States "estab¬
lish without further delay a gold

from

market values)

Spahr. The Com¬

is Dr. Walter E.

Conclusion

buys

ment

$9,084

for

being

Policy.

interest in a
Canadian enterprise (which might
$3,000

well
$6,780

only)—

home

mittee,

timthem the necessity .tX'-fs^m.JaAriS.'and -379,066. acres of Sales'
berlands
owiicd ron Dec. 31, !1957.

upon

Walt.r E. Spain-

controls

tested

United

fa¬
future earnings.

able

(common

We must alert the voting public'
to this danger before it is too late

;

effect
•

-j

vorable

the

lish

Bell

should be held in

'inflation'

that

J. W.

1957, any relief from the

hollow ring in our

protestations, that
government
budgets should be balanced and

fixed

grain. With Ca¬
grain shipments
31.4% of all ton

agreement should have

.::2-075

$11,325

economic

and

973

(bonds)

stock

miles in
old

6,220

Preference
Dcbent.

depre-

Funded debt

Pacific's

nadian

and

reserves —Li...-—

Provisfon

A;'/vV»'"r V

policies.

excluding

398

established

estimated ton mile rate of 2.14

cents

Current

follow^unsound

ment

15,810

were

"There is

standard.

by law. Grain rates averaged only
0.59 cents per ton mile in the first
seven
months of 1958as against

Less—

economy,

United

the

967

$18,105

.than
have
us
especially if
it is done without any effort or.
sacrifice on their part. The easiest
for, the communism to win its
battle against the free world is to'
have

rates

i 94

;

Properties

The Soviet would like

better

weaken

—l

followed-

the dollar.

nothing

*630

debts

Investments

indefinitely,
without seriously weakening our
national

;

into gold;

currency,

lands

international

build
greater
con¬
fidence, in our dollar, and reduce
pressure overseas to convert our

emergency,

undergird efforts to

order

exchanges,

times

willingness
to
accept
the
healthy discipline of a fixed goldstandard and a fully redeemable
or
convertible currency.
Such a

evidence

Concrete

free-spenders: in government.' $3,000 BUYS (IN CANADIAN $)
mission to consider all aspects of
As I have said before, we are all
Based on CPR's
the
freight rate
structure5, and:;
y : Annual Report Estim't'd
agreed that we must make the
program
to eliminate
; :
;
and divided
Appraisal develop-a
expenditures necessary to provide
V.-'
by 141,000
Value
the
outmoded
Crow's Nest Pass
an
adequate > defense.
And
in Current assets
$1,057
$1,057
Agreement. By this v agreement,
periods of business recession, or Deferred payments & ,\s
reached
in
1897, grain shipping
mtges. on properties
59
59
in *
-

unthinkable.
needed of

our

(3) The Canadian Cabinet pro¬
posed the establishment of a Com-'

have been entirely overlooked by

pursuing

we are

alteration

ther

competition
Airlines

doubts

remove

90% diesel-

over

Transportation Minister

Hees

shown in the annual report.

;

world economies, to

dependability, and to end uncertain¬
affect the success of sound domestic fiscal, monetary,

ties that

yard service.

considerable saving should

assist free

a group

adoption of redeemable gold

about the dollar's future

diesel locomotives

freight

$2 >2

ized,

and, after allowing
for
all
priorities,
stockholders'
equity
(common
and
preferred
In government this means that
combined) was $1.09 billion, or
purchasers ,of government securi¬ $55 per share. This figure might
ties, should be safeguarded, to the be increased by $8.50 per share
extent of ^protecting insofar as if the £ Sterling obligations of
possible, the value of the dollars the company are calculated at
they will receive at maturity. Too $2.75 to the £ and not $5 to the

the

either

Since the road is

practiced in government, as well
as in business and private affairs.

often

of monetary economists urge our

end

standard to

the 1957 balance sheet,
total assets of the company were

Based

the

(1) A- Royal Commission found
that firemen are not required by

million funded debt and debenture

know also that high standards of
financial
integrity
should
be

Encouraged by convertibility and other steps abroad,

since

Pacific, common shares,, developments
outstanding,
preceded- by»$137 1957.,.-.-

indefinitely

We Assist Free World
By Making Gold Redeemable at $3S

The Security I Like Best

flexible

and

simple truth proven time
again that no one can live

and

Economists Urge

government

interlocked

tary policies.
..

Continued from page

in
much

(1439)

The Commercial and Financial Chronicle

They recognize that

economic growth lies not so

iri

and guard

economy

"our resources.

the

5832

Number

189

U. S.

dollar.

"The

structure

firming

in¬

Dempsey-Tegeler Adds

ternational exchange rests in part
upon

States

the stability of the United
dollar which is equated

in foreign exchange
quotations at $35 per fine ounce.
But since the United States dollar
is
not
freely
convertible
into
standard
gold for
all holders,
doubts exist in respect to its fu¬

with

ture

gold

dependability.

This

uncer¬

tainty
encourages
irresponsible
demands, both within and outside
our country for further tinkering
with our standard gold dollar. An
end
should be promptly put to
these uncertainties in the interest
of sounder fiscal and monetary
practices, economic development,
and freer world trade.
"It
World

not
War

enough
II

the

that

during

President's^

(Special to The Financial Chronicle)

ST.

LOUIS,

Lambros

has

Mo.

been

—

S,;

Alex

added

to the

Dempsey-Tegeler & Co.,
Street, members of
York and Midwest Stock

staff

1000

Locust

the New

Exchanges.

Reinholdt & Gardner Adds
'

(Special to The Financial Chronicle)

Street, members of the New York*
Midwest Stock Exchanges.

and

Westheimer Adds
(Special to The Financial

Chronicle)

CHICAGO, 111.—Arthur F.

Cad-

alter the dollar-gold' kin has become associated with
134
terminated, ot that on Westheimer and Company,
occasions since the author¬ South La Salle Street. He was

power
to
ratio was

many

ities have

solemnly declared fur¬

LOUIS, Mo. — Walter H.:
Averill
has joined the staff of
Reinholdt & Gardner, 400 Locust*
ST.

vNVAtrmnclir

TwririCf

WPIC! fc dOL

The Commercial and Financial Chronicle

(1440)

Continued from page

The

Etrenght

somewhat pointless,

seem

likely American policy is
an unwillingness to risk war over
Europe or the Near East just so
long as the Russians are content
with rather modest grabs, and the
maintenance
of
strong
enough
military forces to deter attacks on
this country. If this view of our
probable
basic
diplomatic
and
military policy is correct, the deA

mands of that policy on our econ

will be fairly modest.

omy

(5)

military

Russian

the

Larger

III

Distinction Between the

—The

Short-Run and the Long-Hun
Problem
At

the"United

nresent

confronted with

States

shoit-iun piob-

lem of growth that is very differfrom the long-run problem,

cnt
In

the

long-run the capacity of
ohe economy to gi ow depends upon

the

amount

and

quality

our

fWpinnmpnt

rocnnwAc-irnnn

science^and^hnoloev £Tsur>n?v
CSffliTO
concerm^

^uddIv

the
concerns, the supply of inof in
vestment-seeking funds, the sup-

uess

craftsmen

the

The XJrt-ruiral

present time

♦n

the

problem

full

tfPt

rP-

rate of 6%'and with many plants
operating below capacity, the immediate short-run problem is one

theP

increasing

demand

.for

SSia*h«S^
rnod<?

might

(1) More
ments—local,
•spending

state

has

been

continue

necessity

the

local

gov-

creeping

money
lies,

cities

because

compensation

But

financial

lise

spending more
education, roads, utili-

and

ployees.
the

national.

and
and

years and will undoubt-

some

edhv

state

ernments

for

incrpacpd-

increased.
spending. by govern-

ivr

oJ:

em-

large proportion of

and

states

having

are

difficulties.

Hence, the

an?
£
spendlPg
jv 1 be model ate. Spending also
by
Government will
a

wriu

will

ui held down
be uniT hT ra^G °+i mcr?ase
by the reluc-

tance of the government either to

Incur

largo

deficits

raise

persistent

V1G7 °f
4.^igh and
unemployment the

gov-

S3ementTUnk.n t
irfi Tliiinn

lu Ti

budget for the fiscal

year

(2) More exports.
exports in 1958

iiigher than in

1960.

year ex-

•cept 1956 and 1957.

No great gain
to exports is in
prospect.

(3) More buying for inventories
business.

After drastic cuts in

inventories during 1958, some expansion of inventories in 1959 and
the early part of 1960 is to be expected. But the accumulation of

inventories will
exceed

the

not

rate

year
which
reached in

significantly

$3.6 billion

had

already
January, 1959.

been

(4) More investment in plant
and equipment by business. In
the
latter half of 1959 some

pickup

Of investment in plant and
equip¬
ment
by business
may

ex¬

pected.
The
rise
in
the
first
quarter of 1959, however, above
the last quarter of 1958 is
small,

©nd
investment
in
plant
and
equipment by non-agricultural in¬
dustries is running smaller in the

first

quarter

1959

compensation in private industry
less than real product per
manhour. With wages rising twice
as fast as productivity, not in one

rise by

would

generate considerable income
throughout the economy and
would

not

impair the credit
the wage increasing firms.

but in year after year after
year, some upward adjustment of
prices is necessary.

year,

than

pensation of workers in private
exceptionaI. If one examines the
industry
rose
more
than
the
decade changes in the wholesale
wholesale prices of finished goods.
construction, Congress is likely to
prjce ]Gvel beginning with 1798
Table II shows the changes in
insist on circumventing to some
anc] ending with 1958, one finds
extent the restrictive policies ol
compensation of employees per
oniy f0Ur decades out of sixteen
manhour
in
the Federal Reserve. Part of the
private
industry,
which the net movement of
effect of more abundant mortgage
changes in real product per manwholesale price level, up or
hour, and changes in prices dur¬
be., to
S down, was less than 10%. One
buyers bid up the price of real fihds eight decades in which the ing the last 11 years.4
finds eight decades in whidh the
The charge is made that the
estate, materials, and labor, mak- net
movement
was
more
than
rise of prices in recent years is
ing ]1ome building more expen20%. In eight decades the move¬
to
be
sive.
explained by employers'
ment of the price level was up¬
^ Larger personal consump- ward, and in eight decades it was arbitrarily raising the prices of
their products. The facts do not
^on expenditures.
Personal con- downward.
The
longest period
CI;mntinn' enonHinff miohi ho in
A I ll.
;
,
b
1
support this charge.
One must
sumption spending might be in- that the price level moved in one
expect strong sellers' markets to
creased by tax cuts' but tax cuts direction was three decades—from be accompanied by some arbi¬
are out of the question because 1868 to 1898. During this period
trary price increases. Neverthe¬
the bad state o£ government fi- the movement was downward,
nances
will
not
permit them. The economy has demonstrated less, such increases do not explain
Larger personal consumption ex- rather impressively that it has much of the rise in prices in re¬
cent years because profit margins
penditures may result from a been capable of operating satis- have dropped, not increased. Be¬
money.

togh

In spite oi. the
of
housing

level

Bufto^hlfomk^uorter oTl958 ff *°rily.under risin- fal,i"S>
BUt 111 the f°Urth Quarter Of 1958 stable priCGS.
any

year

since

1949

Hence

tween

,„nW

hll£1

stimulus

from

government

spending than it has received in

United States from 6.7%

incomes

produce virtually full employ(so that the economy is
growing rapidly enough to put

ent

for

further

—2.0

5.7

7.1

0.9

3.7

9.3

2.5

8.0

10.4

9.5

—2.3

—0.5

0.7

—1.0

2.2

2.3

0.8

1.8

0.3

0.4

characteristic

2.9

4.4

—0.3

2.2

0.2

1955-56

6.0

0.6

1.5

4.4

2.8

1956-57

6.0

2.7

3.4

2.8

3.6

1957-58

3.0

1.0

i2.7

0.3

2.3

Eighty-sixth Congress, First Session,

Hearings Befo"e the Joint Economic Com¬
mittee, p. 782.

0.3

1954-55

in the preceding section. It means
that the economy has a greater

1.8

1950-51

4.1

Indicates that the Federal Reserve

full

employment. Unions may
creating inflationary rises in
prices and increases in income
be

while

the

economy has, a fairly
amount of unemploy¬

substantial
ment.

Thus

in 1954, when the
unemployment rate a vera ged
5.6%, hourly compensation of em¬
ployees in private industry rose
3.5% and output per manhour by

about half that

Again in

1958,

ment averaged

amount, or 1.8%.
when unemploy¬
6.8%, hourly com-

pensation of employees in private
industry rose by 3% and real
product per manhour by one-third
that amount, or 1%. V *

How

Can

Upon

the

Impact

Prices Be

Growth

Diminished? ' V

■

Various steps may be taken to

lessen the
growth

tendency of economic

raise the price level.
Only experience will demonstrate
the
In

effectiveness

judgment
price level is

the

those

slow

steps.

rise

cost

inescapable

maximum

the

rate

growth—that is, growth at a rate
which puts to work all of the

country's

resources.

factor

growth is the labor sup¬

The limiting

ply.

An employment rate of 97%
97.5% of the labor force is

probably
rate

high

feasible.

employment
employ¬

This

ment rate would leave idle much

semi-obsolete and high-cost equip¬
ment.
The steps that might lessen the
impact of growth upon prices may

divided

those

into'

that

the

government might take and those
that

private industry might take.
been
proposed that the
government keep prices stable by
tight credit policy which would
create enough unemployment to
prevent wages from outrunning
productivity per manhour.
But
this policy does not represent a
solution
to
the
problem.
It is
simply a proposal to subordinate
growth
to
stable
prices.
The
burden of adopting this "solution"
It

has

should
cause

from

soon

the

prove

loss

intolerable be¬
the community

would

rate

retarded

increase

—2.8

1949-50

3.5

Is overdoing credit restraint.

able to suppose,
however, that,
in the absence of wage
increases,
the drop in payrolls would have

•

5.8

unemployment

payments per hour upon payrolls
cannot be measured. It is reason¬

growth
compound
expansion upon to work all investment seeking capacity to expand than we had rate. If the economy were capable
larger personal consumption ex- flinric\ lininn«; nrp in a strong previously suspected. It means of growing at 4% a year and were
penditures and upon larger outlays t
T
\ a bU°"g also that the influences making held to a growth of only 2% a
?" *>lant and equipment. Up to bargaining position and are able for inflation are stronger than year in order to keep price level
tbe Present, business has shown to raise wages far faster than the had been suspected. It means that steady, at the end of 10 years the
disposition to increase its increase in output per manhour. there is no sharp dividing line economy would have 26% less
and e?-ui+pment; During the 11 years 1947 to 1958, between cost-push inflation and productive capacity than it would
Consequently, the immediate need f
e* nle a neriod of fairlv demand-pull inflation, since have had at the faster rate of
I? for lar^er personal consump- for example, a peiiod of ianly unions, by raising wages in some growth.
tl0n expenditures. There is little steady prosperity, hourly earn- plants, tend to raise incomes and
It has been proposed that the
prospec<: °f getting an increase in ings in all private industry rose demand throughout the economy. power of unions to push up wages
these expenditures through a fur- about twice as fast as real prod- Finally, the tendency of trade be reduced by breaking up the
unions to generate money incomes
ther drop in the rate of
unions
in several parts so that
saving, uct per manhour.
The rise in tends to reduce the
severity of
Consequently, the best short-run hourly earnings was 66.7%; in recessions. The recession of 1958 there would be several unions in
the same industry.
Such an at¬
illustrates the point.
In March,
TABLE II
tempt to weaken the monopoly
1958.
the
low
point in
hours
Increases in
power of unions would not have
worked by wage and salary em¬
average hrly
Change in
the
intended
results.
Unions
real product
compensation
ployees, hours worked were 4.0% would lose some of their present
Change in
Changes in
of workers
of private
non-farm
Change in
wholesale
less than in March, 1957, but wage
in private
consumer
ability to support strikes by some
industry
wholesale
prices of
and salary payments were down
industry
per manhour
price index
finished goods
members
while
other
members
prices
only 1.7%, indicating a rise of work and
1947-48
8.5%
3.6%
pay
dues and special
7.6%
8.5%
7.9%
nearly 2.3% in wage and salary assessments.
1948-49
2.7
2.9 ,
But the employers
—0.9

lucent months. It will be depend-

5.9

importance, but one that
economists in general have over¬
looked. I have explained it briefly
great

ment

1952-53

rate

to 5.3%.5

Since corporations

1953-54

high

tnad^S\to^CS0ndii°gSUS

rise

1956 the ratio of

in recent years
tnw:n(f •
Thic i0.n,r>c
have greatly increased their de¬
preciation allowances, one may
argue that the comparison should
be the sum of profits after taxes
tion expenditures during 19o9. blue collar workers in industry
Wage increases have an income are organized. Union membership plus allowance for depreciation
generating effect because they fg concentrated among the largest and depletion. Such a comparison
also shows a decline. In 1950, the
tend
to increase the outlays of
and most efficient concerns which
first year for which complete fig¬
the enterprise making the wage
pay the highest wages and set the
ures
are
available, the ratio of
increase.
The increases in outwage
patterns.
Virtually all of
lays have a multiple effect on the blue collar workers in the profits after taxes plus deprecia¬
tion and depletion allowances to
other outlays—they produce insteel industry, the automobile insales for all non-financial corpo¬
comes
that are partly spent on
dustry, the rubber industry, the
rations was 8.7%; for 1956, it was
consumption, and these expend!- farm equipment
industry, the can
tures in turn produce
incomes industry, the glass industry,i the less than 3.1%.
that are partly spent on
The tendency of unions to raise
consumpmen's clothing industry, the womturn. The effects are
diminishing, en's garment industry, the rail- labor costs by pushing up wages
but they go on indefinitely. Hence, road
is not under most circumstances
industry, the airplane in(1)
because
the
wage increases are a strong stim- dustry are organized, and there self - limiting
ulant to the economy—they gen- is a high proportion of organiza- wages of many non-union firms
erate
expenditures and incomes tion in the
are affected by increases in union
building trades, the
(2)
because
when
and'
course> fbey tend at the iCOal industry, the printing in- firms, and
same
time to raise prices.
dustry
the paper industry, the unions gain wage increases, unions
This analysis indicates that one
also generate larger incomes and
electrical
industry,
the
meatpowerful influence for expansionl
expenditures in the rest of the
packing industry.
in recent.months, namely invenThe rise of strong trade unions economy. The tendency of trade
tory
unions to generate increases in
policy,
has
pretty
much makes it almost inevitable that

in the

The

1947 and

profits after taxes to sales
dropped in the case of all nonfinancial
corporations
in
the

^!^ri?cT^T!m,do^^wil?T)G^accom
b?r" tag "os™!
i
eu
.A
"i

slow

1958.

fect

in investment in
plant and
equipment and the persistence of

drop in em¬
Hence, the precise ef¬
higher wage and salary

ployment.

1951-52

quarter

payments per hour.
To a small
but unknown extent, the rise in
wage and salary payments tended
to accentuate the

ment in employment. But the de- effects upon the price level. As a dence does not bear out this cession was around $2.6 billion
mand lor housing depends upon ma^er 0f fact, sometimes rapid claim. In every one of the last a' year g '
The tendency of trade unions
the supply of mortgage money, growth has been accompanied by 11 years, without exception, aver¬
The tight credit policies ot the falling prices; at other times rapid age hourly compensation of em¬ (1) to push up labor costs and
Federal Reserve tend to limit growth has been accompanied by ployees rose more than the con¬ prices, and (2) to generate in¬
employment in the housing indus- risjng prices. Periods when the sumer price index, and in 10 out creases in money incomes does
of the last 11 years hourly com¬ not
try by restricting the supply of
depend upon the attainment
pnCe level was stable have been

less

considerably

other

increases

+is f^rc,e*,,The analysis also economic expansion will be acSGVu indlPates .that the economy in the companied by rising labor costs.
^«™a
forthcoming months will receive when demand is strong enough

Merchandise

were

any

increases
widespread

? my

Such

but

Thursday, March 26, 1959

housing. The present rate of housAnswers Labor's Argument
been at least 3%.
On the basis
tog construction is high. Hence, The Impact of Growth Upon the
Some spokesmen for the unions of that
assumption, the net con¬
no large rise from present levels
Price Level
argue that
wages
were
simply tribution of wage increases to
is in prospect. The demand will
it would be strange if growth
be stimulated by the improve- COuld occur without pronounced chasing prices up, but the evi¬ payrolls at the bottom of the re¬

present

Hie Problem of Economic Growth

of wage

modest

mortgage

v s

expenditures

form

increases.

Cost of Maximum Growth Rate
match

best

rather

Slow Inflation: An Inescapable
to

real product per manhour, 33.6%.s
In
only
three out of the last
eleven years did average hourly

prospect for stimulating the econ¬
omy is through wage increases.

4 The changes in the year-to-year com¬
pensation
of
employees are
computed
from data in 86th Congress, First Ses¬
sion, Hearings
Before
the Joint Eco¬
nomic Committee, p. 782.

5
i

Congress,
1st
Session,
Print,
Productivity,
Incomes, p. 118.

Eighty-fifth

Joint

Prices,

Committee

and

with

dealing
would

still

the

several

dealing

unions

with mo¬

nopolies able to shut down their
operations.
Furthermore,
there
would be rivalries among the new
unions
and
each would feel a
6 These
run

figures
of

elasticity

that the shortdemand for labor is

assume

Volume

strong

189

to make

urge

tlement

than

The Commercial and Financial Chronicle

better set-

of the others,
there is little reason to
that breaking up unions

Hence,
expect
would

5832

Number

any

general rule diminish
their upward pressure on wages.
as

Favors
t a\ ors

<ji

several

steps

iessen

that

enlist the active cooperation of all

duce

the

important

step

tendency

growth

raise
prices
would
be
to
cut
tariffs and abolish quotas, thereby

American

exposing

industry to
from abroad,

competition
Foreign competition, by making it

difficult for American firms

to pass on

increases in labor costs

customers,

stiffen

would

the

resistance of American employers
to

wage demands and would retard the tendency for rising wages
to push up prices.
Too

much

should

not

from

foreign

competition

pected

ex-

employees from top management
to sweepers in reducing the ratio
0f

payroll costs to sales.

At the

time, only a few enterprises really succeed in gaining
the
active
cooperation of their

present

workers.
more or

They

hire

men

less routine physical tasks

prescribed

ways

manage-

indi-

finished
United

manufactures

States

shortcuts

cover

because

are

rarely put to

were

methods

most

plants

of manageare

not de-

signed to bring out these qualities,

indeed, most managers have little
conception of how much ability is
used.

the

1958

Consequences

Creeping Inflation
Since

there

About

twenty

years

there

ago,

toward

growth

the

with

stability
.

and

;

prices
...

program for reducing tariffs

and

economy

achievement of rapid

eliminating quotas.

I suggest

ke liew methods of manage*nay or ""•any n°t be ade<Suat® to Prevent wages from out-

mei)

running
productivity, but they
boid more promise for checking

rising labor costs than

TABLE

Increase
in

consumer

price index l!)4K-r>7

Austria

any

124.0%

Increase in
real product per

capita 1!)J«-.">(!

93.9%

Finland

87.5

31.4*

France

76.7

47.4

Spain
Norway

55.7

34.5*

51.4

United

50.6

Kingdom

Sweden

12.6f
v

22.7

46.8

14.6f

Netherlands

46.2

20.2f

Denmark

43.2

16.1

___

Ireland

14.8

Italy
Canada

27.9

43.1

26.2

20.7

16.9

18.4

Belgium

41.8

U. S. A

12.6

23.0*

9.4

16.3*

Switzerland
-1948

to 1955.

'<1950 to

device

III

SOUPX'E: United Nations, Statistical Yearbook, 1957. (p. 485).

effects

dis¬
astrous
as
they are frequently
described. Let us examine briefly
the
principal allegations made
about creeping inflation.
by

are

means

(1) Creeping inflation is said to
bad for production. Examina¬
of the

experience of various

countries in the free world shows

connection

between

the

degree of inflation and the rate of
increase

shows

in production.

the

increase

Table III

the

1953-1957

100.0%

12.0%

Austria

Belgium

5.3

Canada

7.0

19.0

6.0

23.5

Denmark

16.0

price level and the increase
real product per capita in 16

countries.

the

crease

the

greatest

consumer

in¬

price in¬

that our exports of finished man-

ufactures

markets. No one can be

of world
sure

what

future

the

will

bring,

prices in most other industrial
countries have been rising even
than

the United

States.

1957, for exam¬

ple, the increase in the index of
wholesale prices in Britain was
more than twice as large as in the
United

in Sweden and
than three times
large, in France almost three
States,

Norway
as

6.0

16.0

times

Italy

16.3

10.0

almost twice

Norway

35.1

12.0

four times

Sweden

29.9

were
us

help

ing

2.4

were

times

in underselling
scale, that would
check inflation by stiffen¬

„

s.'*/°i
Supplement,

Statistical

39, and Social Security
tober' 1958> p*

P-

19S79

Bulletin, Oc-

IBA Executive

succeed

broad

the

Development Program

American

WASHINGTON, D. C.-The

employers to union demands and
by encouraging employers to cut

ninth annual session of the execuhve development program sponsored by the Investment Bankers

resistance

of
_

prices.
r

*«

or,

it is saW

cause

mrf.
This

a
'
dollar.

...;n

«•

fear

the piac-

raises

Where

the mon-

So.

have limited attractive-

currencies

because

ness

might

one

political

has

name

problems

those

almost

States.

Flight

country

any

and

economic

formidable

confronting

into

Association of America is being

fromThe held this week (March 22"27>

flight

Every
country
m
Europe has had creeping inflation
during the last ten years. Other
ey

on
the Campus of The University of
Pennsylvania,

Philadelphia.

roned for the program
270

junior

officers

and

0tber

seasoned

are

En¬
about

and partners
personnel of

iba member

organizations, it was
announced by William D. Kerr,
Partner, Bacon, Whipple and Co.,
Chicago, President of the Association.

United

the

commodities

Seminar

1951

and

1952

is not satisfactory because the fu-

^hia

executive

oer„dfton 7feSm^rkt;

has

"offe?ed

conditions

S^LffototTy tonsorcd

petition
than
eral

(supply, demand,

substitutes)

com-

far more

what happens to the gen-

price level.

Some shifting of

investment is bound to

already

example, if the price level is
pected to rise 2%
bond

year, a

ex-

good

yielding nominally 5%

has

true

yield of 3%. Such a bond
may be as attractive as a stock
that has been bid up to yield only

•

iba and
Finmice

the

and

Whaii^ ScLSf

cZmerce

and commerce.

Registrants attend the Institute
lor three
years> and upon completion of the
one wee^ in the spring

K°^+anl recflY,^ a pertdicate of
Merit. In addition to attendance

first°and Tecond vear° attend?

the

^ ^pre?requjje to

contin-

This statement

pensions.

program

uing in the program.
It is exsaid to pected that more than sixty will
power of recejve certificates at the
gradua.

(6) Creeping inflation
reduce the purchasing

training

i^the Ed^

and

occur

has
occurred,
but
the
tends to limit itself. For

process

provided
to

Switzerland

4.2

5.0

West Germany
United States

7.5

6.0

No
er

large, in West Germany

one

large, in Austria

pensions

are

true

not raised

and most

largest

compre-

hensive

plan of all, the Old Age
and
Survivors'
Plan, has been
substantially liberalized by SUCcessive amendments.
The origi-

nal
of

benefit formula

was

one-half

per cent of the first $3,000
cumulative wage credits plus

one

one-twelfth
the next
fourth

ono

™

$84,000.
58.85%

one

per

cent

$42,000, plus one-twenty-

The

nor

oBnt of tho iiGxt

" Ot tne next

present formula

of the first $110

average

knows, of course, wheth¬

still

too

small, but it

sumer

price
it

index.

the

end

$24.55; at the end

1946

rise faster

1957, $64.53; and in July, 1958,

pV11^+

Floor Reporter, nfter

which he became a Floor Representative

Firms

with

prior

various

his

Members

assignment

t°n in 1958.

benefit

The average old age

continue

graduation from U. S^C., enteied
J*}®
affS

with Mitchum, Jones & Temple-

$290.

will

.stockholdei of theiFirm, has been
Securities Business in Los
Angeles since 1951.

prices in other industrial coun¬

tries

nn£all^?,ril?-a I"yesJors
is at
Wilshire Boulevard, Los Anand was oiganized m 1953.
Mr. Ross, President and principal

monthly wages plus 21.4% of the

has risen far faster than the con-

large.

^ion

^be

offset the rise in prices.

13.0

5.0

1958

our
imports. But if
industrial
countries

important

The

(4) Creeping inflation will cause
the United States to be priced out

66.7

11.1

large

shows.

29.9

——-

exercises Friday, March 27,
concluding day
Some
Applications for the 1959 Instiplans are geared to the wage level tute again exceeded substantially
—as in the case of some plans in
tbe available facilities according
the steel industry which provide to Robert O.
Shepard, President,
for a monthly pension at age 65 Prescott, Shepard and Co., Inc.,
equal
to
1%
of
the
average Cleveland, Chairman of the IBA
monthly earnings during the 120 Education Committee, and head of
calendar
months
preceding the the Institute Planning Committee,
month of retirement, multiplied
by the years of continuous service.
f Exchange Members
An
increasing number
of com5*- * 1UUC,°
enhances the demand for invest¬
panies, private bodies, and public
The election of two new memment-seeking funds by preventing
bodies have put in variable an- bers of Pacific Coast Stock Exrising labor costs from destroying
investment opportunities. By thus nuity plans under which the assets change through purchase of memof the plan are invested in equi- berships in the Los Angeles Diviencouraging investment, inflation
ties that fluctuate more or less sion was announced by William
also encourages saving, since for
with the movements of the price H. Jones, Division Chairman,
every dollar invested there is also
level.
Other pension plans have
The election of Stanley L. Ross,
a
dollar saved.
been
liberalized.
For
example, President of California Investors
(3) Creeping inflation is said the General Motors
plan, which represents a new Member Firm
inevitably
to
become a
gallop.
originally provided for monthly to the Exchange and the election
This is a widely disseminated bit
pensions at 65, after ten years or
John H. Grobaty, Jr. of Mitof nonsense. All of the important
more of service, equal to $1.50 for
chum Jones & Templeton repreindustrial countries of the free
each year of service, now provides sents the third membership of an
world have had creeping inflation
pension benefits of $2.25 to $2.35 existing Member I irm.
during the last few years, yet in a month for each
year of service
The new memberships were the
every
case
except
Switzerland for workers retired prior to Sept. purchase of. Treasury Memberand Belgium the rise in the con¬
1, 1958, and $2.40 to $2.50 a month ships recently created by the Los
sumer
price index was less in for each
year of service lor workDivision, which increased
the period 1953-1957 than in the
ers retired subsequent to Sept. 1,
authorized number from 70 to
period
1948-1953, as
Table IV 1958.
80.

France

that

services

was $65.87j
The increase between the end of 1946 and July,
1958, was 168%.
In the same
period the consumer price index
rose
less than 49%.
Hence, in
spite of the fairly substantial rise*
in the consumer price index between 1946 and 1958, the average
recipient of a Federal old age
pension was far better off in 1958
than in 1946 — the purchasing
power of his pension had gone up
by about 80%.

seal question.

with

Great Britain
_

social

^especially in manufactur- tin, Annual
Jnv-Jing.
J/niS
indicated by the fact

con¬

sumer

Between 1950 and

1948-1953

for

precludes important reductions in

very

effects of creeping inflation. These

faster

TABLE

Since

States.

taxes), all of the industrial counsince, in tries
are
likely to
experience
event, reconciliation of the about the same movement of the
two objectives will take time, it is
price level. The competitive podesirable to examine the probable
sition of the United States is

but

1956.

United

stable price level and

ideasfto

„

ening the American

the

principal industrial countries
are
in competition with one another and since they are all more
or less
subject to the same influences
(such as powerful trade
unions and an insistent popular
demand

way

began
be developed new meth- dex, also had the greatest increase
in
real
output
per
manhour.
•^Sko0111' imports. than twice as 0(js
Our exports
management designed to
in
1958 were more
draw on the unused abilities of Switzerland, with the most stable
large as our imports in the case workers The
pioneer in this work price level, had one of the small¬
of iron and steel products; more
est increases in per capita real
tbe ja|_e joseph Scanlon of the
than seven times as large as imBelgium and the United
t ff of the United Steelworkers output.
ports in he case of machinery;
alld later of the staff of the Massa- States, which had relatvely small
increases in ther price levels, also
neaily twice as laige as imports chUSetts Institute of
Technology,
m
the case of cotton manufachad relatively small increases in
M
Scanlon>s work is being car_
tures; Foreign competitors are ried Qn by men trained by him, real per capita output. The eight
handicapped
by
the
fact
that and his methods are in use in sev- countries with the largest in¬
creases
in
the
consumer
prices
abroad
have been
price
Jls|nS eraj score plants. The spread is level had an average increase of
faster than in the United States.
slow because the new methods of
In Britain
the laigestmanufac34.7% in real per capita output;
management require changes in
turer outside of the United States
the seven countries with the small¬
phiiosophy by both employees and
111
est increase in the consumer price
uG of
W?X V,
ilq management and a high degree of level, had an average increase of
much
industry has been held mldua] confidence.
The essence
down by wasteful union rules and22.5% in real per capita output.
Qf the arrangement is that workin the metal trades, by an unruly
All of this does not prove that
gain an opportunity to earn a
shop steward movement whicn m bongs
by reducing the ratio of inflation causes a faster rate of
many plants has pi evented manincrease in output—though it is
payroir costs to sales. A system
agement from exercising proper af committees is provided to col- consistent with that conclusion. It
control.
In spite of these handidoes
strongly suggest, however,
and pass on
review
caps, foi eign competition
is
bethat some of the causes that raise
operating results, and to consider
coming more effective.
If duties
output per manhour also produce
prob]ems> Experience shows that
into this countiy were drastically
when men are given an opportu- inflation.
cut and quotas removed, foieign
(2) Creeping inflation is said
njty to earn a bonus by developing
competition would be invaluable tea(n.work and
improving tech- to discourage saving. The oppo¬
aid in checking the tendency ot
site is true—inflation encourages
noiogy amazing things begin to
wages to outrun labor productiyh
Thc
workers
The reason is that the
develop saving.
ity and in retarding the rise m remarkable
capacity
to
make volume of saving is in the main
piices.
In addition, foieign comtechnical suggestions.
They be- determined by the volume of in¬
petition would be a wholesome come
critical
of
management vestment—not investment by the
spur to efficiency and to mvenshortcomings which formerly they volume of saving. If investmenttiveness
m
industry.
No single did
t min± Their ideas of who seeking funds ar insufficient to
step that the government could ig
d supervisor are radicaiiy meet the demand for them, in¬
take would make such an imporcomes rise until investment-seek¬
cbanged
tant contribution toward strength■
ing funds are adequate. Inflation

i^t

the

any

Austria,

2.4

may

than

reconciling maximum growth with

tion

imagination, their ingenuity,

their ability to invent and to dis-

going to waste through not being

manufacturers

Some

their

American

by the fact that exports of

rising

lIse

against

employees

costs.

Today the most important
capabilities of American workers,

ment

as a

can

cated

yet been developed be¬
they enlist the active help

all

ments.

general rule, Ameriproducers (especially manufacturers) can undersell their foreign rivals. The strong position of
because,

pri-

that

the government could take to re-

competition

most

has

cause

the

tendency of economic
growth to raise the price level,
the most important would be to

The

that

vate management might take to

Foreign
! oreign

Increased
increased

that Congress provide for the immediate starting of a program that
would
gradually
eliminate
all
duties and quotas within the next
ten years.

(1441)

was

Joins J. L. Sunderland
(special to the financial chronicle)

MT. VERNON,

Fehrenbacher

111.
now

John G.
connected

—

with Joe L. Sunderland.

(1442)

The Commercial and Financial Chronicle

that

the

prices,

hold

and
The

comes.

such' stand

general effect on
is to limit trade,

policies

down

removal

Southern Pacific Co. has shown

the

ability to maintain earnings
during the several postwar busi¬
ness adjustments. This carrier was
of

one

the

higher

reported

share earnings in 1958
and
it
is
likely
further expand in

per

than

which

few

1957

will

earnings
1959.

Southern
is

the

Pacific's

growth
in
the

place

good

showing
has taken

which
vast

territory

New industries and plants
to be attracted to the

serves.

continue

line and the

road

has followed

beginning

group
and it

with

this

year

is possible that the earn¬
ings of the group will just about
double.

However, the other income

account

longer

dividends

will

include

St. Louis Southwest¬

(Cotton

ern

One of the principal factors for

western earnings will be included
in the earnings of the affiliated

Belt) shares which
have been running around $1,600,000 annually. The recent $20,200,-

000 windfall dividend from Cotton

Belt will not be included in South¬

Pacific 195.9 earnings although
be reflected in its cash

ern

will

position.

program of
making
industrial sites available. In 1958,

cost

dropped only 2.2%

It is estimated it would

Belt

long

range

gross revenues

from 1957 and less

1956.- This

than 3%
of

one

was

showings made by

Earnings of Southern Pacific in
the final quarter of 1958, on a sea¬

being kept under good

control. Despite higher wage rates,
the transportation ratio in
1958

38.7%, the lowest since 1955
indicated good utilization of

was

and

motive

and

power

trains.

Purchase

make-up

new

cars,

modernized yards and installation
of central traffic

control, all have
combined
to
lower
equipment
rents appreciably. The road also
has

continued

its

im¬

property

provement program and these out¬

lays

have

been

fairly

high

levels.
A

factor

which

has

aided

Southern Pacific's earnings is the
increase in "other income" and

earnings

from

affiliated

solely

controlled

companies.

Other

in 1958 amounted to

come

$23,894,000,

rise

in¬

than

since

years,

profits of solely controlled
rose from around
$1,000,a record $8,717,000 in 1958.

1952.

Over

the

same

affiliates

The

around

at the
$6.50 a

The road actually

controlled

Continued

St.

from

Louis

page

share.

reported

South¬

rate

were

net inco*ie

equal to $6.16 a share
compared with $6.02 in 1957.
With
business
showing further

improvement,
for

possible that
might rise to
share, barring a

1959 net income

high as $7 a
long steel strike and
as

an unfavor¬
able decision of rates case between
the East and the West.

Southern Pacific has large land

such1

involved.

recessions and inflations from the
United
States to
Canada.
Such

need to

for what

In the interest of mini¬

mizing hardship and of gaining
support for liberalization of such

definitely

should

movements

en¬

trade

to be in the process of resolution.
The reason is to emphasize the

nadian
do

oil

one

better

example, I can

than

express

own¬

In
periods of recession ~ it 'is
highly questionable whether de¬

cisions

managers

re¬

duce

operations of a Canadian
facility would be taken on na¬
tionalistic grounds.
Rather, pre¬

The real issue is
agricul¬
price-support policies which,

lea^t in the

under Canadian

even

instance, agricultural sur¬
plus disposal is fundamentally not

tural

Ca¬

and

ership and control.

this

such.

Taking the U. S. quota

patterns

ferent

recognize policy problems
they really are and not
for what they may seem to be.

restraints, reforms must be grad¬
ual, but they must also be fostered- a problem of international trade,
consistently and with determina¬ although it manifests itself as
tion.

are

by-products
of
of financial
relationships which
would
not
necessarily be significantly dif¬

couraged.
There is a reason for
noting a problem which seems

enterprises, would signifi¬
affect the transmission of

cantly

occurring more fre¬
This is all to the good

policies, once they have been
imposed, is not an easy matter,because of their quasi-permanent
effect
on
a
country's cost and
price structure, and because of
the various equity considerations

vailing economic conditions would
seem
to be the
determining fac¬
tor, and these generally would

case of wheat, have

resulted in large carryovers from

tend to require similar decisions
regardless of the nationality of a

general agreement with the report
of the Special Study Mission to

year

to year.

tion

lies

Canada of the United States Con-,

which will regulateto say that in some circumstances
disposal of such huge hold¬ different
.decisions might not be
ings, but rather in more sensiblemade, but certainly the problem
policies which will prevent their does
not lend itself to
ready gen¬
accumulation.

On the question of nationaldefense, which appears to have
been the chief justification of the
quota, the Mission noted: "If oil
gress.

The long-run solu¬
in

not

trying to devise- firm's

management.

mechanism

This

not

the

eralization.

Aside from the possi¬

needed

for
A more abstract
defense, there is.
problem of Ca- bility of selling the firm's
prod¬
legitimate distinction between nadian-U. S. trade than the lore-, uct in other
markets, which is
wells in North Dakota and Texas going concerns
general balance-* one of the advantages of
big in¬
on the one
hand, and the wells oftj of-payments
problems. i' During ternationally-oriented
firms,
a
Alberta and Saskatchewan on the 1956 and 1957, and to a consider¬
large U. S. company might well
other.
All is available to meet, ably lesser extent in
1958, Canada maintain its operations in Canada,
any threat posed to the people of had a large deficit on trade ac¬
simply to avoid stimulating anti-

the United States and of Canada.",

count both with the United States

The Mission concluded that "It is

and

spurious

Much of these deficits was related

reasoning to

that

argue

full report should be

able in about

The

road

one

made avail¬

year.
on

annual dividend basis and if

ings hold
it seems

earn¬

throughout the year,

that

aggressive threat

Canada

would

other

commodity,

worst

forms

oil

any

are one of the
restriction, al¬

market for oil than the

market to
is

the

limited

not

considera¬

increasing

Moreover,

extra later

this year.

other

feeling there.
to

regard

sentation

the

Canadian

share of control

and

;

repre¬

may. true

As in¬

rate.

If such

occur

and not be offset

Canada would tend to deteriorate.'
Some of the

interest

States to block such

the

subsidiaries than

substantial

Canadian

operations.

having
while

1957

$10

wholly-owned,

with

i 11 i

million

$50

were

those

than

of the subsidiaries

sales

subsidiary

This survey indicated

that only 58%

sales
o n

less

86%

were

wholly-owned by the U.S. parent.
The

impact of this effect-

same

survey

reported that,

foi
all
the subsidiaries covered,
incomes would be absorbed bv\
Canadian
representation
in
the
Canada's
fluctuating
exchange:
senior executive managerial posi¬
on

rate, but, in the presence of rap¬
tions
idly
rising
incomes,
the
price,
effect

rise

the

exchange
rate might
well prove to be a.
negligent deterrent to imports.« -

United

expansion

of small

large ones, according to a recent
Empire Trust Co. survey of 166
U. S. corporations known to have

situa-".

by compensating changes in other

well..

subsidiaries,

appears

future

vestors

national income, there is
danger that imports of con¬
sumption goods may rise at an

the

Canadian economy items in the balance of payments,
to oil; it extends! the currency reserve position of

materials

raw

foreign

wholly unfounded.

quota per-" increasing

occurred

inflates

important for various manufac¬
tured products too.
It would not

Solving Current and Future

S.
In

some

reasonable to expect that the U. S.
market could become increasingly

whole.

vestment in Canada—both foreign
and domestic—expands and as it

Canadian manufac¬
industries expand,
it is

turing

for

concern

tion should

importance

volume

which

not be

The

large

for

not

the

investment

be available." One might add that

quotas, whether

some

paying

Canadian in¬
apparently
are
willing
that period, and, as a result, the'
and
financially able to make
excess
of
imports over exports
equity investments in such firms
had no adverse effect upon Ca¬
but. stock often is not available
nadian gold and foreign
exchange for purchase. This limitation of
reserves.
However, some grounds stock sales

while

tion might be given to
the rate or

possible

world

the

able to meet

mits.

currently is

with

reserves in Texas would be avail¬

holdings, principally in Nevada, though any form of restraint that
Texas, Utah and California, with can be justified on no better
potential of oil, natural gas and
grounds than this must be con¬
minerals. To further capitalize on
sidered ill-advised. United States
these lands, the carrier has en¬
investors, no less than Canadians
gaged an outstanding engineering
themselves, e x p e c t e d to have
firm to study the holdings and a
greater access to the United States

record

100%

000 to

sonally adjusted basis,
annual

are

between' those
on

best

major carrier

about $6,500,000 to ac¬
quire the 16,237 shares of Cotton
common outstanding.

from

the

last year.
Costs

S. P.

and

consultations

governments
are

restric¬ quently.

tive

Southern Pacific Co.

that

two

matters

in¬

real

the

raise

Thursday, March 26, 1959

.„

in imports of manufactured goods'
from Canada.
Of course, as Can¬

The

critical

question

of president, general man¬
secretary and treasurer in¬
creased from 57% in 1955 to 61%

ager,

in 1953.

idents

In 1955, 47%

of the pres¬
Canadians; ,b'y 195)8,

wpre

involved- the
proportion had risen to'50%.

here, of course, is one of limiting- Other

Canadian-United States Problems

ada's

tuating conditions in foreign mar¬
well be a less important

results
ofthe
survey
consump-' showed that large
and lorig-e.stal?^

of Canadian exports to other mar¬
kets.
The
size
of
such a
shift- the

kets may

consideration than the extensive
chain reaction of stimulation de¬
rived from such exploitation. As

alized

the

raw materials rise over

long run, it would be

able

favorable

expect

cussions

the

reper¬

form

of higher
saving and in¬

levels of domestic
vestment

reason¬

other

sectors

the

sort of chain

economy. This
action
would

re¬

likely where,

man resources

particularly

are

in Canada, hu¬
of high quality
and where the rate of saving al¬
ready is fairly high.
While

this

mentary
omits

most

rudi¬

set of principles,
number of practical

and
con¬

siderations, it is set forth here to
illustrate the

fcat immunity
to business fluctuations abroad is
idea

not the only end to be considered

by developing countries,

nor

is it

in every case the most important
one.

This

would

seem

espe¬

cially true, of course, where the
alternative

choice

establishment

involves

uneconomic

raw-materials-

their

international

In the

strides

mous

of
Canada, which of
already made enor¬

case

has

course

its

relationships.

the

development

economy, one nevertheless
what appear to be certain

finds

resemblances to

some

the cir¬

cumstances postulated above. Rich
and
varied natural
resources, a
large and sustained volume of

investment,

and

labor

force

in¬

nations

turing.

the

contrary, it will

promote rapid and well-balanced
economic growth throughout the

Canadian economy.
a
wider

I believe that

character.

inter¬

national

This, in effect,

means

that close cooperation and mutual

respect
must

for

each

others

interest

exist between the industri¬

the

rate

tion

increase

the

availability of do-f lished
companies tend -to have
mestic supplies and to the level
greater Canadian representation
of consumer-goods imports which in
senior
management
than
do

fairly

ever,

not be repeated. Suffice it so say,
it would be in the economic in¬

terest

of both
nations to adopt
consistently pursue a joint
policy of general tariff reduction.
and

nations, if important

industries
lished

honest
older

become

cannot

the

new

check

stances, would
fiscal

and

face

monetary

rather-than
;

interest

businessmen and by the public at
large in both of our countries
would

go far toward creating a
better environment for the solu¬
tion of some of our more

specific

problems.
Problems of Canadian-United
States Trade
There

are

least

two

such

well

Canada

should

certain

turn

questions

which

now

-to

seem

relatively less im¬
may lead to

portance-but

aspect

which

of U.

that

straint has
monetary

concerns

tariff

barriers

have

only temporarily. To do
otherwise would be to ignore the

with

curred

principles of competitive free en¬
terprise which we as businessmen

positions in the. Canadian subsidi¬

proclaim to other countries and
to espouse for ourselves.
Canadian

concern

over

the

ag¬

ricultural surplus disposal policies
of the United States certainly is

We all are quite familiar with
the problems
posed by protection¬
ist policies in international

not without justification.
Fortu¬
nately, stens have been taken to

sides

the

border.

trade.

Economists have long maintained

avoid
damage

indiscriminate

sales

commercial

markets

Canadian

that

for

products, and I under¬

tions

Canadian

concern

foreign

objec¬

(primarily U. S.)

appear

lack

sentation
aries

Canadian

in1 senior

repre-"

management

corporations.

Un¬

derlying this is said to be a Ca¬
desire to be. independent

nadian

"control"
business

certainly
tion

would

even

an.

and

cycle.

Ca¬

the

,This

understandable posi¬

one

disagree
very

over

with

few

principle, but

doubtful

complete

which

local

indeed

that

control

investment

here.

complicated Canadian

policy.

ownership and control of enter¬
prises located in Canada. These
to be concerned chiefly

These

regrettable

profess

voiced

continuing large in¬
S. investment during
periods of Canadian monetary re¬

flow

Canadian-U.- S. business relations.

been

in Canada with regard to another
Problems of U. S. Investment in

undiscriminately
granted and maintained,- of
course, or else they would be selfdefeating.
Only those industries
which hold promise of becoming
competitive should be subsidized,

not

has

concern

this

could

good

Some

•

actions which could greatly affect

•

both

public rela¬
good-business, to
expand Canadian ownership in¬
terest and management of such
enterprises.
~ '
\ ....

tions,

subsidies

nent

Such

exj

estab¬

foreign

walls.

rely

measures

tariffs and quotas.

industries

tariff

the

tendencies toward

any

cessive "consumption.
We
hope
that
Canada,
in those
circum¬

and then

understanding of this by

other

•

country's foreign earnings can' smaller and newer companies.
;
limited, how¬
support." If the growing domestic
The'! foregoing suggests - that
and, to the" extent that it- production of
goods now imported"
some
headway is
occurs, it should be in response" does not
being, made
keep pace with the in¬
to natural
toward solving this problem, and
rather .than artificial:
creasing demand for such-pro¬
it seems likely .that the'trends-al¬
economic forces.
\ '
"" "
'
'
ducts," or if the growth of export'
apparent
will
continue.
Many of the foregoing remarks and other foreign exchange-earn¬ ready
Wherever it is possible to do so,
apply to tariffs-as well as to ings is inadequate, then measures
it would certainly seem to be in
quotas,, and the principles need will have to be taken to hold in
probably

of strong arid
competition, or if
cannot survive,
then specific subsidies, on a rap¬
idly diminishing scale, would be
preferable to maintaining perma¬

they will have to be of
well

will

expect'
shifting

basic resources would not
retard
domestic investment in manufac¬

specific problems.
One concerns
U. S. ciuota restrictions on
imports
of certain Canadian
products. The

there

we can
be some

In both

are prone, nowadays.
Other solu¬
tions to the problem of economic
fluctuations should be sought, and

national

that

diversified,

high quality, all suggest that the
further development of
Canada's

the

dustries—a danger to which many

raw-materials-producing

the

producing nations in the formu¬
lation of their
respective national
economic policies as well as in

incomes from the production and

export of

and

pattern of exports .becomes

"abundance

that

easily

most

countries

such

times,

riehes"

situation

cannot

though

As
of

and

be overcome,

other, industrializing
be delighted to

would

it.

similar. munition

rapidly expanding investment
ing

one

the

United

recent

States

boom,

of
oc¬

dur¬

and

the

determined, .efforts of the Federal
Reserve.

Svstem

tially. successful
line against-the

ing

form

total
of

were

only

par¬

in- hoMins

the

onslaught of ris¬

expenditures.
expanded

Some

monetary

powers may

well" be needed both

and

Canada

the

United

States in order to deal effectively

with

mushrooming investment in

some

circumstances, regardless of

Volume

Number 5832

189

The Commercial and Financial Chronicle

whether such investment is of do¬

ration

mestic or-of foreign

United States

origin.

between

matters

Concluding-Remarks

>j
*

matters
tance.

What is important,
in conclusion, is

it seems to
that the na•!
ture of our problems be under-•
stood,
audi that
the
solutions,
^adopted be> not? merely those of

Canada

are

and

the

needed both in

of^current interest and in
of
longer-range

ulation

the

Interstate

Corn-

Commission,

merce

of railroads is frustrated

regulations governing

u n s ound

depreciation of plant and equip-

branches'of. our governments but ment.
also Joint consultative committees
(5) Railroads bear the full cost
of. our respective legislatures and of
unemployment insurance bene¬
convenience but rather those that business groups.
This is a field fits for
employes, exceeding bene¬
will help both countries achieve in which our chambers of cornfits under programs covering
orderly
economic
development merce can play a vital role. In workers in other industries.
and
prosperity.
Similarly, we .the economic, political and mili(6) The 10% travel tax levied
;
must distinguish between serioustary- struggle between the colduring World War II to discourage
and superficial problems, lest, we lectivist,... and the private entertravel by public carriers contin¬
nsolve the wrong problems and fail. prKe'nations of the world, it
ues to do that 14 years after the
victim to the right ones.
Above is important that we in the United
end of the war.
•... all,
the solutions to the various' States recognize that, while "what
What Congress does this year on
rbproblems should bev ones ;which-,iS; good for the United States"
will not jeopardize the great gains may not necessarily be good for these six subjects will have a dihraade by the Free World toward" Canada* it is certainly true that rect bearing on the immediate
greater freedom of internationar what is "bad for Canada" is very railroad future,
.

•

■

h trade and

investment.

Leadership-likely to be bad for the

United

Knowledge of the railroad in-

States. If we bear this in mind, dustry's past, and acquaintance
we should be able to work out with its present usefulnes, give me
faith in the railroad future. Pop¬
our problems harmoniously and faith in the railroad future. Pon-

furthering the work already
& done
rests heavily on our two
4 countries.
I
'

(/• Closer consultation and eollabo- effectively.

ular action seldom has gone wrong

in this country

when prompted by

general understanding and public

Continued

appreciation of the importance of

from page10

issues

that

concern

all.

The railroads

alone may not be
able to brush away all the clouds
that obscure their future. But they
can
do it with the help of the

What Should Be Considered
About the

public they-serve.
Removal

regulatory

restric¬

miles with, less fuel and fewer tions and limitations now inter¬
able and
man-hours of labor than any of fering with the exercise of rail¬
road initiative and enterprise,
An overhaul of rules governing; its "competitors on land, sea or air.
the work and pay of railroad em— - Fact #3: Assuming that wri can along with a business recovery
that will add to railroad revenues,
ployees is long overdue. This has maintain our present standard of
will protect the stake of all citi¬
been recognied .by numerous im- :.iivjn^ our steadily growing popuzens in the railroad future. I have
partial authorities, including Em- latiom inevitably means a rise in
complete faith in the common
ergency Board 109, appointed by gross ri a ti o n a 1 product; more
sense and fairness of the Ameri¬
the President to hear the so-called goods shipped, more people to be
can people.
I believe the public
Conductors Graduated Rates/Case moved by all the carriers,
will do whatever needs to be done
in 1954 and;; 1955; Examiner Hosw->..vij»]1€j
imponderables lie largely to guarantee our system of pri¬
ard
Hosmer
of
the
Interstate.
fields of regulation and vate ownership of the railroads
Commerce Commission, whose relegislation. Will the railroads be under public regulation before
cently completed study and report permitted to diversify and provide
heater damage develops These
should

truly profitworthwhile production,
for

used

passenger, defxcit:
^s of transportation on
are
the
on
publicized all over.
highways,
waterways
and
air- which my confidence in the rail¬
foe Senate
ways
which they support with road future stands.
Subcommittee under
.he Chairtheir taxes- but are denied an
One other prediction I wish to
manship
of
Sen^or ^ Smathers, equal opportunity to use?
add to, the future of the railroads
whose recenh investigation
of
Will c o m p e t it i v e modes of
is an easy otle because it is true
what was described as the ."de¬
transportation co n t i n u e to be today.; The expansion and modteriorating railroad situation" lead
heavily, subsidized at; public ex- ernization of the railroad industry
to passage of the Transportation
pense, or will they be required, to
has already increased
and will
Act of 1958/
'
'
pay fair user charges for their continue to increase the complexThe report of Emergency Board
facilities?
'
?ities of managing it. I suggest that
109, dated March 25, 1955, after
Will the railroads be relieved of of all the industries which defiobserving that there has been "no
comprehensive
review and re¬ sOme of their unfair and onerous nitely intend to stay on the ground
;
in the United States, leaving space
vision of the wage structure - in tax burdens?
the railroad

^her

widely

was

fouSion

the United States, and

•

the

railroad,

industry

since

the

In my opinion, regulatory
changes that will aid in correcting

days of World War I, said:
"The fact that the railroad wage

conditions

structure,
for
operating
classifications,
has
received no

rate

review

comprehensive
than

years,

for

railroads-

that
are

now

what

distress the
is
needed,

above everything else, to brighten

Congress last year in the Trans¬
study, for almost 20 years, alone portation Act of 1958 took some
suggests that it may well .be obso- steps toward broadening railroad
lete and llLdesigned for a modern.
opportunity to meet rate comperailroad system.
tition by other carriers. The legisThe railroads recently called on lation
enacted
does not afford
the
Brotherhoods
to join with railroads yet the equality of comthem in asking the Presidents of petitive opportunity to which
the United$States to appoint an they are entitled, but it has
impartial? commission to examine- proved encouraging. Along with
the rules governing work, and pay other railroad people I am look¬
of railroad employees. The ship¬ ing hopefully to Congress for fur¬
ther action before it again ad¬
pers and customers of the rail¬
roads will throw their weight be¬
journs.
..

to those with a different educational background, no industry of
fers

fascinating challenges

opportunities to young men
looking for careers in business
and

than

the railroad future.

and no systematic

the

does

industry.
is one of the
boast of over one
railroad

The railroad industry

that

few

hundred

can

years

service to

its

country, and at the same time pre¬
sents

young

men,

such

are

present here tonight, more op¬
portunities for rapid rise to posi¬
tions of responsibility than many
industries half as old.
In this

discussion, I have delib¬

refrained from using a
psuedo-scientific approach, which
is usually the popular one in talk¬
ing about the future. What the
erately

future holds for

hind the effort to modernize those

our

industry

fields of greater automation,
wonders made possible by devel¬

the

rules, and much progress will be / Lists/Urgeut Regulation Needed,
simply
because. growing ■■ ; There are some twenty basic
public opinion will demand that respects in which railroads agree opment in electronics, or other
forces 'and techniques as yet un¬
progress be made. *
that Federal laws do not fit cur-'
discovered I leave to
someone
I am going to discuss how ribout
rent conditions, laws which should
with more of a scientific bent than
the important field of regulatory Be amended* moderated, or reI possess. I dp know that the rail¬
laws and*-what- developments can /pealed. A discussion of all of them
roads ^will keep abreast of such
be expected.
~ ;
- is not possible here.. I do want
developments.

made

Anachronistic

[V "

Reguiatiou

;
-

tjtiough to. refer briefly to six mat-

ters which the railroads regard as

already said that regula- urgently calling for legislative action
hasr. not
kep! pace' with-/tion:
changes in conditions affecting all. -(I) Fully self-supporting, taxpublic carriers, and; affecting, the, paying railroads are unfairly
railroads especially. Before list* handicapped; by having to meet
ing changes- that are necessary it tax-supported competition!
will be helpful to sum up tbe gpn(2) Railroads are required to
eral
position
of
the
railroads help pay for highways, airways,
today.
We-have some facts and air-fields, rind waterways, but do
some.imponderables -to deal with: not enjoy the same opportunity
I have^

■

Fact #1: Railroads are the.back-

bone of the nation's

transportation

system, bothjin time of peace and
emergency.

Fact #2tTfre

their, competitors to

use

these

have

1™ements of the natl0n'

from first

page

We See It

the other day in
to leave

New

York

Exchanges.

and

Another Growth; Victim

The learned
seems

professor, along with

to have become

Stock

victim

many, many

,of the current

others*

craze

about

the economic affairs of mankind better than the natural
forces which have done so well, at least in this

country,
century and a half. In fact, he seems to
suppose that inflation, so long as it does not become a
runaway inflation, does no harm at all. Apparently in his
judgment, people are induced by it to work harder* save
no less, invest more
readily and as wisely, and manage
somehow to get along as well on fixed incomes which
havp
lost a large part of their purchasing power. Well, the pro¬
fessor is, of course, entitled to his own opinions—we
grant
that they are honestly held opinions—but to us such na¬
tions fly in the face of experience and plain commonsense.

for

than

Having thus dismissed inflation as a real danger* it
a
long step for the professor to the belief that higher
wages, which he says are the chief inflationary factor
today, are not to be disapproved;for that reason. Having
become a believer in the doctrine of
inadequate purchas¬
ing power — a doctrine of ancient origin and long* ago
demolished by economists — it is, of course, natural; for
him to advocate higher
wages in order to insure prosperity,

is not

what is

now

viewed

the establishment of

a^ more

rapid rate of short-term growth. If the learned professor
were a politician or if he had
political ambitions, which
we are certain he does not
have, we shouldifeel obliged;to
attribute such notions to a desire for votes. As it is* we
find it very difficult to understand? how so able and so
learned a gentleman can arrive at such strange conclusions.
And Deficits, Too
Much the

same

]

•

is to be said4 of his advocacy of a

says he thinks he
believes in "as such." Of course, expenditures by govern¬
ment in excess of revenues must be met somehow; Either

heavily unbalanced budget; which he

the government must go into the investment market

and

bid for funds in

competition with private industry which
could do a much better job making use of the savings of
the people, or else it must resort to the modern counter¬
part of the greenback, which we should suppose woulc^ be
anathema to anyone so learned': in economic history as
Professor Slichter undoubtedly is. But, again, if creeping
inflation without end is a good thing, we suppose that" it
is then only necessary to accept Professor Slichter?s faith
that creeping inflation always creeps and never runs, hi
order to build some sort of logical basis for advocacy of
perpetual deficits financed at the commercial banks; It is
unfortunate that the man in the street

easier and

perhaps

often finds it

convenient: to accept the word
of a noted professor on such subjects than to do; a.little
commonsense thinking for himself. That is the real danger
more

from the rather weird beliefs of Professor Slichter and the

others of the

same

school of

thought.

Perhaps the most astonishing of the suggestions of the
professor is his rather off-hand statement that the^mcgt
effective single anti-inflationary step, that the government
could take would he to abolish ^ all tariffs and import
quotas. It is astonishing even il halfheartedly put forward
apparently in the full belief that no such thing: wilt be
done. It is astonishing because it seems to reveal suck a
strange notion of cpnsistency in-, formulating economic
policies. What the professor thinks would become of Amer¬
ican industry, which: must
carry the burden of labor: mo¬
nopoly and various other cost raising programs in? com¬
petition with industries from countries where these
burdens are unknown or relativelyMight, one finds it hard
to fathom. Perhaps he believes with Mr. Reuther that
are now so

even

if drastic

huge that incentives enough would; be
price reductions

the economy, or at

—

Midwest

artificially induced "growth." To him it is apparently a
sine qua non of continued progress in this
country* pos¬
sibly of continued existence. An indefinitely continuing
rise in prices is, he says, a small price to pay for the attain¬
ment of a rate of growth conceived as desirable
by the
national planners and others who think
they can manage

left

(Special to The Financial Chronicle i

CLEVELAND, Ohio

Washington he seemed to be determined
trace ofany, oi the. commonly accepted
sound public policy in good standing.

hardly

maxims of

profits

With Ball, Burge

inherent-efficiency transporting agricultural commod-

sought'rather to deter-

mine what position the railroads
will occupy,in the( economy of our
country m the future. 1 am satisfied*.-they - will • rontmue to• no id
the dominant position in furnishing the mass transportation re-

Ladimer
facilities in their business.
Lustig has. become connected with
(3) Railroads are deprived of
Balk Burge & Kraus, Union. Com¬
equal opportunity to share in merce
Building, members of the

of rail transportation enables the v ities, which/when transported by
carriers
ta produce more ton-, motor carriers, are free from reg-

Continued

(4) Vitally needed moderniza-

impor- tion

This might well include

not only agencies of the executive

me.

(1443)

would not
We

were forced all through
least that widely spread bankruptcy
/

occur.

can

only hope that these extended hearings now

begun under chairmanship of Senator Douglas will pres¬

ently yield better value than has been true

to now,

■

(1444)

The Commercial and Financial Chronicle

Continued

from

riod

page

which

could

Wanted: An Economic

Breakthrough
lems

and

challenge of inflation, or a combination of the
communist economic competition three.
merely by increasing
our
own
These are all eminently desirwealth and economic power at a able
objectives. In a relatively
faster rate. More material wealth primitive economy, under the iron
is by no means the sole or even
the

primary

all

for

cure

oui

problems.

be difficult to do

not

ol these things, lor
In

some

all

complex and delicately-balanced free economy, it's
continue not quite so easy. If you succeed,

Austerity Is No Answer
I

believe

economic

must

demonstrate

that

system

maintain its

can

dynamism and bring

kind

our

even

greater

for

example, in increasing sharply
productivity
performance,

your
you

displace

may

condemn them

e r

i t h

While it will be disavowed, I

they

should

they

people

from

Thursday, March 26, 1959

such; I do think the pie, but merely to share in a
recognized for growing pie. The fact that so often
they do the exact opposite of what

are.

For all these

reasons, the giant they
say
does not
necessarily
convinced, and I believe that ob- unions, their economic monopoly mean that they are insincere. It
jective study demonstrates, that power, their political
influence, may just mean that they feel they

American

labor

not

their methods and their motivat-

must do

ing philosophies deserve the most

really want to do in order

earnest

their jobs.

lot of things they don't

to hold

movement.

scrutiny by all thoughtful
deeper-dyed < col- Americans, Democrats and Republeagues in viewing the galloper licans. liberals and conservatives,
advocates as cynical.
Machiavel- who are seriously concerned about
lian demagogues driven by perpreserving important fundamental
sonal
ambition
or
oy
alien values of our economic and politijoin

Shitoso^'te.' i'have

reason

honesrtv

time at least.

this is the view held by the single
most
influential element in the

the

meet

make

what

significant headway
political party.

c-aTsystem"

and

".Vnmotpromot-

earnestly concerned with
But

with
and

take

their

many

with

here

basic

and

will make more, because there a
are
lot of things I want to say and
jusl not enough time to document
a

of their methods,
anybody or any

many

don't know

of ■flat

issue
ideas

strong

very

number
1 have ,nade
and broad assertions

ing tfte well-being of society.

them all. I would like to point out
one

two

Traces Wages and Output
Take

the

wage-price inflation
the years following
War II, hourly labor
wage

dispute.
World

rates had climbed

major

wherein

areas

than

history.
well

any

1956

faster rate

period
and

our

continuing

into

1958, we had a series
even sharper increases in
hour¬
ly wages and fringe benefits in
major manufacturing industries.
of

TuAc;p>

fvnrn

yea£ 0'r (r0£

Ror

tw0 to three

the

obvious that we cannot achieve tion.
you wind up with surplus
(jwatpr
the greater cnm'ai hprWifs wp nil goods, anc\ you will almost persocial benefits we all onnHe' and vnn will almost cei
desire, nor can we do the kind of. tainlv resist the kind of action
job we ought to be doing in the that would give you the increased

ing much

free

its

world,

without

spending

productivity

that

not

money.

Some
could

people

make

irig right
be

argue

now

would merely
a
little less

little wiser and

selfish, if taxpayers would stop
fighting tax increases, if farmers
would give up some of their subsi dies, and veterans some of their

benefits,

by intelligent, sound planning
action

and

increase

rate

our

economic progress. It can be done.
gut
there is, in my opinion, a

right

and

way

akout

right way, to put it
simp]y, it to provide the best

acting

best chance

our

wisely

and well as a
nation is to make it easier for all
of

know

the

things that

very

approach

wrong

the

problem.
The

And the way to do that is to

expand
we

economic

our

rapidly

are

can

base

Wrong

Approach

soundly do

able to do that,

so.
can

more of everything:
higher living standards: more tax

revenues:

social

effective

benefits:

foreign

economic

unfettered

There

except

the

American

broad

galloper is

little cot-

ton stocking tilled with powdered
carbon. It was! used back in pro-

hibition clays to hasten the aging
of
whiskey in the barrel at a
time when it was not considered

practical

ripen

dynamic

economic

growth. But I think it is

proposition that

The

On the whole, of course, this
country has done exceptionally
well, better than any other, in

let

reason-

and

can

the

mellow

natural

advocates

today,

better

in iha
done in the past
rate of growth.

define

than

have

in^oaeino

the things we
would like to achieve in order to
maximize

our

Ideally,

progress.

want

the

do-it-now

once.

men.

They

and

order

giving

are

They

the
want

~x-

cannot

trolled

fastest

market

production. Increasing
productivity means increasing the
duced

of goods or services

with

labor.

capital,

materials.
of

all

available

The

these

the increase in
Then

production

management
more

pro-

resources—

efficient

elements

and
use

determines

utilize

And

deed

our

and

may

future

they

say,

believe,'that
of

private

with

the

unconthe
free

from

move

annual

average

about

2.3%

some-

like 5%.

union

leadership

increased
increased

seriously

productivity,
productivity,

can

and

the

I
1

to start than with its

increased

economic

think of

better place for it

own bargaining philosophy and demands. It is

growth that it says it wants.

Decision

new

can

unions

question

today
and

are

that

ods

growing number of states, unions
have
achieved
increasing influence if nQt practical control over
legislatures, ^courts and adminis-

construction

trades,

for

ex-

cost
to

effect, would force industry to fi-

untold

billions

dollars

the

profit
enterprise,

great

say

fairness

that

industrial

present
L

most

labor

our

leaders

>t only to Tighten The screws on
have not seriously attempted to
k,,+
„1c,„
a
e_
9
management, but also^ to advance block ^
the introduction of new and
hrnoH
1
onol
broad cnci ol nnH political goals nf
social and nnl 1i \
of more productive
machinery—cletheir leadership.
spite their outcries against what
I believe, in fact, that the
giant we call automation. Nevertheless,
cnr«m,c

less and
or-

many of the barriers to increased
productivity are union-made.

relative
think,

political
the

most

apathy -it

is,

aggressive,

as-

ciency, including feather-bedding,
union participation in determining
work standards, extreme seniority
rules, and actual disincentives to

outstanding performance.

On the
latter point, in our 1958 negotiations. the UAW seriously proposed
that promotion should be based

they

zeal

they

are

say

and obvious lack

brand

accomplish

social

careless about

by the desire for personal
profit, that it is greedy.
lacks

Tv^ncrh 1,3!!

incentive

constructive

gently

ends,

means,

can.

their
have
to

own

been

put it

Either they

very poor economists

are

on seniority and that
merit should not be considered-

proposal

which

did

contain

escalator

automatic wage increases equal to
fho

ri«n

nrWc

nnncmmnr

^ave

also

additional

Thpv

guaranteed

annual wage increases in the form
of an annual improvement factor.

1958 people began to wake
to these facts, and the public

reaction to

rising living costs put
on something of a
Union leaders are always

the big

spot.

unions

wage and

their

point

benefit increases

membership.

had

been

However,

reached

where

they could not get those increases
out

the

normal

productive
growth, where labor costs forced
prices upward, and part of the
—
::~
added wages that went into the
added waSes that went into the
»

unionized
i

worker's

•«

pocket inevi-

•.

■%

•

tably

came out of somebody else's
pocket—mainly from the pocket
of
the farmer, the
teacher, the
preacher, the government worker

and

retired

agree.

In view of all this, incidentally,
am

always puzzled to find union

leaders

worker

speaking of
productivity,"

workers

must

sweat

"increased
as

people

fixed

in-

pro-

social

eous

imagination.
The galloper viewpoint is a crisis
viewpoint. It sees our national

peal

are

of the right-

slogan, the thinly; veiled apto selfish interest, the glib

response

plex

masters

to the serious and

problem.

They

com-

answer

the

important and valid generalization with the fast, flashy and often
false particular. Because they are

ductivity
through
more

generally is increased
investment
in
better,

efficient

plant,

better

chinery, better methods and
esses,

better scheduling and

In this

ma-

procso on.

sense

ductivity" is

face

leaders

pressure,

came

ivith

the
theory that what we had was not
wage-caused inflation but profitcaused

wjth

inflation

bloated

J°S

industries

way

nrofits

from

to exhelD-

public

matter of fact,

gate statistics for
0f

that

—

products in such
tort

monopolist!cally
adminisprices were pricing their

tered

the aggre-

the'movements

prices, profits and

wages over a

substantial period

of time directly
contradict this thesis.

though

harder

they are order to produce more. Improved
not willing to let objective ecoproductivity means less human
nomic truth stand in their way.
sweat, not more. Industrial

They

union

not

"management promore
appropriate
term than "labor productivity."
continuing
high levels of
conmediate
action—usually
involv- politically adroit and highly perThe union leaders who say they
sumption necessary to absorb and
ing a total mobilization of our re- suasive publicists, economic un- want
more
productivity — while
•ustem^a rapid increase in the sources under strong, central derstanding is being done a meas- steadfastly resisting it—also say a
pioauction ol goods. We would
guidance.
urable
harm,
misinformation
is lot of other things.
want to iind
They say they
ways to decrease the
This, of course, is a fair approx- multiplied,
and
the 1 democratic believe in profits and the incencosts
ana
inelticiencies
of
dis- imation of what
might be called process
itself
is
impaired.
As tive system. They say they want
a
-n
n
41,
*he traditional extreme left-wing Adlai Stevenson used to say: "It all groups in the society, including
t^j1
al
economic viewpoint in our so- is better to lose than to mislead business, to share in the
produc.0™^^,Wen!l° tu want a stable ciety. I discuss it at such length the people."
tive growth of the economy. They
f
u
*1S n
kecause
viewpoint once again
Now I realize that such meth- say they do not want
wage gains
usl9ess cycles, appears to have politically pow- ods are the traditional methods of
that
enron c aencit
are
inflationary, and that
nnancmg. chronic erful advocates, after a
long pe- political oratory. I don't mean to thev don't want to redistribute
.

contracts

provisions, known as cost-of-liv¬
ing
allowances, which provide

in-

they

gain

hJ?h5L

These gains enable some unions

primarily economic

—

against the inflationary effects of
its own wage increases.
Many la¬

for

inaustiim unions, tnougn l must

strikes aeainst itself.

as a

;

industrial
labor—
was
insulated

course,
alone

home'owners" and'to the'whole FFlFL
bigger

agencies. I have in mind,
economy
example, the recent Michigan
Supreme Court decision which, in

less

base.

ample, have stubbornly and effectively held back progress at a

trative

nr,iv

and

tools leading to producincreases. Certain unions in

the

nance

and

politically tive

effective.

pressures

spread.

STrato™ Whavf traditionally J^ny''start fmrTon
top'of*this
and strongly resisted
meth-

Michigan Supreme Court's
There

and sal¬
economy,

the

bor

Productivity

improvement in productivity

economically powerful, politically
powerful force has among
its
leaders a few men who, in their

and

fully as
possible our industrial capacity
and to maintain
consistently high life as a series of cataclysmic haplevels of employment.
penings and unlimited desperate
We would, of
course, also want needs, each one
calling for imas

If
wants
wants

industry

throughout
the
inflationary

and

Some

exclusively

also like to charge
business is inherently morinferior because it is moti-

vated

see

Questions Labor

cendant force in American politics,
And. finally, I believe that this

conviction,
For

ally

very

the

relatively

though

favor

that

increase

productivity.

historical

thing

In the process,
it is unquestionably thwarting the
n is
unquesuunauiy mwanuig uit

from

economy.

that

productivity.

would want to increase

keep

movements

amount

entrust

imperfect

and

J thing

that

economy

the

beating the

substantial

growth

for its constituents.

for higher wages

aries

Higher
brought de¬

and

measures

contradictions

perverse

productivity
of
manufacturing,
agriculture and services. Produc-

for

been

group

ourselves in

inflation.

wage

§anism. Today, it takes care of
The labor contracts of various comes, who did not have the econow, and all at
labor's traditional economic con- industries contain provisions that nomic power to protect themfrustrated by the c?r»s with its left hand, while its seriously hamper progress in effi- selves.

sweeping
social
they want them

possible continuing increase in the

lately

national

would

that power not to increase the growth of the American
pie, but to cut out a larger share

n,.r

exactly

using

right arm is plunged up to the
elbow in politics. It is, by its own
by increasing our achieving all the things we want admission, using political action to
now.
They appear to feel quite achieve economic and other ends
How do we go about doing that?
earnestly that the issues facing that it cannot achieve across the
suppose we might start by trying this
country are so grave that we bargaining table. And in a time of

should

has

drums

among

the" galloper" Yrealment AFL-CIO is functioning

economy
are

labor

economy,

agreement

perhaps

politically vocal

found

full-scale

mands

The

content,

wages

file,

power,

lor

Now

Prefers Economic Growth

able

imposing resemblance to what they say at
society, the grass roots to the rank and

our

program.

terms

treat-

ment.

and will have

center

powerful

"galloper"

more.

terms

upon

big labor is the strongest single

the

ought to do.

views

searching look at what I consider

I have in mind the approach es4_
:
The trick is to arrange things so"
poused by certain elements in our
we can do more and more without
s o c i e t y
who advocate what I
having
to
sacrifice
more
and would call the

basic

chance

good

very

good£:

are.

to mention, by the way, that
what the fellows at the top say in
public often has precious little
ous

today- be-

—~

realistic,

concerned

pos-

doing it.

and
if
Congressmen sibie conditions for the
economy,
stop pork-barreling. That
industry, agriculture, and the varmay
be.
But
it
hardly
seems ious services to
grow in a natural
realistic to suppose that we are
and balanced mauuei, tutu to use
ana
Ucuaiiftu
manner, and IU use
suddenly going to be transformed the
tbe powers of government intelInto a nation of saints orhairshirt
ngently to abet this natural procaddicts. It s a pretty good bet tha„
ess
j have a number of ideas on
we will go right on
being the frail thig
subject. Before I go into
and fallible human beings that we
th?m."fd"uke" to" take a
To be

harm than good,

I believe that this group has

very

wrong way to go

labororiented economists, that the big
union today is in a position of
unrestricted monopoly power.
It

would

That is not to say that we canwe

much better show-

want,

you

And
cause

long-run
average
annual
growth in productivity for the
economy. Since about 80% of the
final selling price of manufactured
products is attributable to labor

of all major components in

business

economy,
have

failed

the

profits alone
in the ex-

ceptional growth of the past decade.
Compensation of corporate
employees
increased
from
$90
billion
1957.

1948

$160 billion in

Increases both in total

ployment and

rates

tributed to this rise.

pay

em-

con-

For

example,
average hourly wage rates in all
manufacturing industry increased
about 50% in this

ten-year period,
Corporate net profits, by contrast,
stayed at about $17 to $18 billion

year despite greatly increased
investment and sales./The return
a

on
capital invested in manufacturing declined from 16.3%
to

11.1%—or

the

same

I have

about

one-third—over

period.
no

idea whether the rise

in compensation and wage rates is
just and fair on an abstract moral
basis.

But I do think

must ask

Volume 189

Number 5832

whether the

failure of profits to
with economic growth
healthy for this country and

keep
is
its

pace

people.

Each

more and more

merely

year

takes

capital investment

sustain

level of profits.

consistent

labor lead¬

our

want dynamic
growth/ they
should be concerned that industry
ers

gets enough profits "both to create
and

to lure substantially greater
capital investment.
t

ing itself and its causes too ex¬
clusively with the extreme conservative

political

viewpoint.

spends^ most of its time trying to

convert the

faithful; it has notably
effectively to the
large mass of independent voters
and has almost
totally defaulted
in terms of
making its influence
failed to appeal

felt

within

elements

the

moderate

both

political parties,

Artivafinjr thp ivTiririio
uwdimg me inmate

The fact is that when the sta¬

fit their thesis.

controlled economy, and for
open-

ment.

They indulged in

selective

statistical

argu¬

For three years, they made

great capital of the fact that Gen¬
eral Motors made

some

stantial profits in

1955.

During
tions, we
3

our

negotia¬

constantly beaten

head

with

GM's

1955

drift

the

ing

nomm

toward

door

amounts

non-ex¬

give

you an argument based on
Harlow Curtice's pay or the num¬

ber

times

creased its

Steel

has

in¬

government

exuberant

one

of the electorate.

It could be playing

b^mobilized6
solid
to

and

wholesome

the left.

Today business is actively seeki n« to organize this latent

wider and

let you see the

power

that it cannot be
normal

stopped by
procedure.

economic

have here

any

absolutely unlimited
appetite with virtually unlimited
power to gratify itself.
Taking at face value the state¬
ments

union

not

want

leaders

that

wage-

Political

this

ioh

result of its

own

negative" Ytnn

^t™XlSUle
n/nnin
favor
I

3111

union busHng

sary

that they will

assume

match their actions to their words

under

the

present circumstances.

Relieve
Our

Labor of Its Power

big unions need help.

The

appreciate fully
of

the valuable

organized

labor

again

they will meet

good

Such

action
the

stricted

vantage
would

also

abuses

power

certain

would

unre¬

has made possible

unions.

Another

in limiting

help

that

union

relieve

some

ad¬

power

the

growing union pressure on gov¬
ernment—including the adminis¬
trative,
legislative
and
judicial
authorities, both state and na¬
tional—so

that

government

majr

continue

impartially to balance
the
conflicting powers of labor
and management, and not act as
a
partisan of one group or the
other.
At

the

same

time,

there

must

be effective political action to op¬

the political action of unions.
I can assure you that finding the
Vitality to match
the political
vitality of the union movement
will be no easy task. It is a fact
pose

•of life that the
our

great majority of
voting population is not in the

businesses of

earlier

era.

social
know

While

litically

business

active,

effective because

has

it
of

has

been

not

po¬

been

its failure

But

our

more,

but to comAmeri-

deep-seated
ideal

caring

opposed

unre-

kind of society.

unions

just

and

can

effectively

trade

any

other

economic force.

suade people to get out their wal-

lets

health

and

humanity,
"Am

and

a common

cannot

say:

brother's keeper?"

greatly

new

improved products that will per-

lize

caring well for our sick and
our helpless and indigent;
giving our young the
best we can give them of sound

development

and

the ideal of

and

Industry must utibetter
the
latent

buy.

much

creativity

people

the

em-

ploys, and venture more in introducing new products. We should
develop better incentives to ennew product ideas; publicize and commend originality in

courage

product design; and exploit more
fully the vast potential of recent
scientific
discoveries
and
new
technologies.

This is the kind of aPPeal

stirs the minds and hearts of the sources of industry and governAmerican people, as it does those ment more effectively to mainQf

evei!ywhere

people

such

Before

appeal, the dry disserta-

^ions of many businessmen

""Y"

the
?«?

enterprise

sy?dm b 0W aWay llke dust m the
wind.
Certainly I believe in the pri-

vate enterprise system. I believe
u can gQ Qn giving ug the great
benefits of economic and social

other system yet devised.

any

works

because

effectively har-

aggressive human drives to
broadly constructive purposes. It
works because it provides incennesses

system

all.

What

loose and tremendously
varied array of private and pubuc enterprises, held together by
the

cohesive, force of certain

un-

principles—free incentive and a degree of freedom of
derlying
choice
iaw

and

three-

action

established

custom.

four-million

this

have

centers

country

versus

direct and indirect, in
economy.
Realistically, over
years
ahead that trend is
likely to be reversed.

role,

our

the
not

tain high and stable levels
employment an^T income.

political

great

toward

pressures

welfare state is its cyclical
nature and its need for mobility
witWn the WQrk force<

the

While
the

there

them

change.

and

minimize

enterprise

that

within

bringing lapolitical power

reasonable

bounds

will

not to

stability

throughout the those measures that are economeconomy. It will stop the constant ically harmful—the subsidies that
squeezing of profits between the perpetuate
marginal
industries
pincers of rising costs and price and marginal agriculture, or that
resistance, and that will mean in- try to sustain marginal industrial
creased incentive to invest in

products,

new

plant

and

new

equip-

ment.

will

building

economy

healthy

important

one

step
dynamic

along
the
sound
and
lines that I mentioned

Excessive inventories of
goods
accumulate from

Plants

time.

people

are

earlier—that is, by providing the
best possible conditions for
the
economy,

including indus-

try, the services and agriculture,
to grow in a natural and balanced
Now

let

point

admit

have

not

that

said

much

that the boys down at the Union
League Club would not applaud,
Clamp down en the unions? Re-

sist

action

context, I would like to
several general areas of
that I believe hold great

potential for a new productive explosion in the American economy,
Submits

manner.

this

In that

direct

government

interfer-

Action Program

First, I would suggest

attack

by all elements of our society on
the existing barriers to increasing

productivity in industry, agriculture and services. Let's try harder

to get rid of the old-world craft
By all means, guild psychology tht has no place
they would say. They might take in
our
dynamic,
fast-changing
issue with me, of course, for not economy — the psychology that
having proposed a reduction of locks people into marginal jobs
ence

the

of the

business?

Federal Government activities and

Faderal

budget to

the

levels

Harding Administration.

Mortimer

and

To ver,

With Marvin C. Yerke
(Special to The Financial Chronicle)

COLUMBUS,

shut

Frambes
Yerke

Ohio

—

with

now

Associates,

Gordon
Marvin

Inc.,

4(1

West Broad Street.

down

Form Buren-Sweeting

laid off. At times

whole industries become obsolete,

TACOMA, Wash. — Burenand their employees are forced to Sweeting
Investment
Company
find new jobs and learn new skills, has been formed with offices at
Again, technological advances 10222 Gravelly Lake Drive, S. W.,
jn industry and agriculture dis- to engage in a securities business,
place people from farms, from John W. Buren and Stanley J.
factories, from special labor skills.. Sweeting are partners,
All of these things create worry,
unhappiness, and economic probJoins Merrill Lynch
lems
for
the
people
involved.
(Special to The Financial Chronicle)
Ultimately they turn to the state
SAN
FRANCISCO, Calif.
to solve their problems.
.

But

for

one,

would

like to

give
thought to
finding ways in which both priVate and public resources can be
used more intelligently to stabilize
employment and income in ways
consistent
with
broad
national
business

See

and

industry

serious and systematic

growth

productive

-it

Broad Vision of Social justice
I

know that in American man-

agement there are many men with
the broad vision and the sense of
social

^eor?%A\.d5 Urioste has joined
Jhe stait of Merrill Lynch, Pierce,
~
omith, incorporatea,
Montgomery StreetHe was
formerly witn Harris, upnam &
Co-

Mitchum Jones Adds

efficiency,

f Special

to The Financial Chronicle)

SAN

Calif.—

FRANCISCO,
Charles
T.
Maguire

has

staff'of

ad^ed to the
.

r»omoanv

405

been

R. TL. MoulMontaomerv

g±reex

justice

The American

strengthened

our

With Stewart, Eubanks
(Special to The Financial Chronicle)

FRANCISCO, Calif.—

SAN

Benjamin

Chapman

economy

and have contributed to our pros-

perity. It follows that we businessmen should not allow label-thinking
t#*' scare
us
away
from
examining fairly and without fear
all future means which, consistent
with economic and political freedom,
will
enhance our future
prosperity
and
security
as
a
nation, and encourage people to
accept
willingly
the
marginal
uncertainties characteristic of any
system
where initiative is not
centered in the government.
In material terms, our future
prospect is breathtaking. The new

£he

Street, members
Pacific

and

New York

Exchanges.

stock

beStewart,
Co., 216

Meyerson

Eubanks,

has

with

associated

COme

Montgomery

have

suggest

Secretary,

habits S.
C.

Buying

dom.

example—and

securities business

Vice-President and Treasurer.

cycles

that it
of the services and
facilities that promote genuinely
worth-while economic
purposes
without shackling economic freefor

provides

is conducting

economy,

business system
has created a great reserve of national wealth out of which we
have already established an unheard-ol'-degree of security and
prosperity for the American home,
We have shored it up with broad
public and private social measures
—measures which in themselves

areas,

through

Hancock Securities Corporation

eliminating

way

entirely.

certain
time

can

free

lems.

believe

economic—•

achieved

I think we would all agree that from offiees at 79 Pine Street,
the one single factor in the private New York City. Officers are Morenterprise economy that leads to decai W. Grossman, President and

greater

and individual initiative.

Hancock Sees. Opens

Our problem as businessmen is
dig in our heels and resist
have
valuable
consequences
for any and all kinds of government
the whole country. It will temper activity. Our problem is to try to
one
particularly insidious form of see to it that government does the
and
that
will
mean
inflation,
right kind of things, that it avoids

well

best

can

Fourth, we should use the re-

needed to break
through the barriers that block
the
fullest
development
and
growth of our society. I think that
the talent, the imagination and the
sound practical judgment of business
must be marshalled more
effectively to attack these prob-

bor's economic and

spiritual,
freedom

initiative

restrict

Third, we must try to stimulate
greater consumption of goods and
services. The way to do this effectively is to intensify sharply our

aged,

Though unions argue that they one in Russia.
not a proper subject for moAgain, I recognize, as all of us
nopoly control because they rep- must,
that as our society has
resent human beings, rather than grown more complex, government
commodities,
the
fact
is
that has had to play an ever greater

also that it has erred

held,

are

generate broad participation by
people in local politics. I suspect
in identify¬

future,

it might be — and
directly not only to

for

ideals —the

really

stricted power. I am against it in
business. I am against it in government. I am against it in labor,

whole

willing to
work to get it. The recent political
triumphs of unions in such States
as
Michigan, Indiana, Ohio and
California are the result largely
of active participation in politics
by the whole union organization
and many of its members.

m0nly
Can

have is

Opposes Any Kind of Power

poration.

what they want and are

appeal
desire

the

now—however

toward

People
seeking
direct
benefits from government

the

action

intelligent and tives that seem to stimulate
leadership
to
represent masses of people to vigorous effort
might never have had. and a constant restless search for
today's overly powerful unions if greater efficiency.
it were not for the bad, unwise,
But I recognize also that the
irresponsible behavior of many private enterprise system is not
them.

entrepreneurial
group
and
is
largely indifferent, if not actively
hostile, to industry. People gen¬
erally do not recognize their per¬
sonal stake in the business cor¬
1

picture

offer

unions with

equality, and competitive market
forces can work to keep profits,
prices and wages in balance. To Monopoly, unrestricted power in
do this requires sound action lim¬
any form, is inconsistent with the
iting monopoly power of unions. values and effective functioning
correct

who

honest

man¬

agement on a basis of real power

our

society. I believe that over
long run, in a free enterprise
economy, industrial workers need

first step is to relieve them of the
burden of monopoly power so that
once

dynamic

m but because is divinely ordained>
1 think [t it works better than

the

realistic to

come

positive and workable
for a stronger and more
a

"f0U
despite pr0gress it has given us in the
cer ain aspects past. x believe in it not because

contributions

courage
and the

union

native, stop-union

terrn<?
terms.

increases,

that they want to en¬
increased
productivity
capital formation neces¬
to achieve it, it is most un¬

With

erCn H vlrltues ,,f the

the

difference and blindness. We need
not and indeed must not think of

they

inflationary

regnL

and to

has lost

figures.

Now, of course, the insidious
thing about wage-cost inflation is

buffer

extremes oi either the right or
of euher
richt

in-

with protective tariffs and unimaginative foreign policies. Nor
can we afford, at home, to sit
around haggling about how ws
will carve up our pie instead of
doing the things necessary to free
our economic machine and make
that pie grow as it has never
grown before,
America's potential is more than
equal to the stirring challenge we
face. By doing promptly and
thoroughly the things we know c
we must do, we can reaffirm in '
the minds and hearts of men
everywhere the deep conviction
that
+w human progress—social —
v"'"™
i and

would^rovid^a

verv

their

brilliant

negative proposals, if it can't
program

the fastest-

management

advances—are

plosion of like magnitude,
Tn the face of vast opportunities
and the economic challenge of
world
communism,
we
simply
can't afford to play two-bit poker

with anything better than
merely

part of

middle

gical

particularly in terms of more
realistic and faster depreciation
economy,
then it will allowances for writing off plant
certainly lose out in the political and equipment and encouraging
race with those who
paint a more the building of new.

other lands, not merely because it
group in the country, is t0 our advantage to do
so, but
composed substantially of white
because we are
and

per-

fancy. We have had a scientific
explosion that has yet to be
translated into an economic ex-

come

investment

capital

ness

mitting business profits to share
reasonably in our e c o n o m i c
growth, and by wiser taxation,

can't

growing

prices, I hope you will
open the book a little

the

business

good education; the
This group ideal of helping to the best of our
estimate, to 30% ability less fortunate
people in

ask him to

rest of

eco-

the political

our society.

employees.

than

best

of a large, moderate,
politically inactive middle-income

which

worse

the

activation

were

growth, lies

profits and Harlow Curtice's 1955
paycheck. About our own profits,
istent at the time, we heard noth¬
ing.
So if anybody happens to

that

hope for stopping the present po-

group

1958

own

were

the

over

very sub¬

seems

Berates Business Negativism
But

who

litical

(1445)

ill-conceived

riocc

uiass

tistical evidence failed to support
the unions' profit-inflation
theory,
they ignored the facts that did not

highly

The Commercial and Financial Chronicle

o£

Coast

Chapman

Mr.

was

formerly with Hooker & Fay

and

Sutro &

Co.

Walston Adds to Staff
(Special to The Financial Chronicle)

SAN

MATEO, Calif.—Albert J.

has been added to the
staff of Walston ti; Co., inc., ozJ
South Ellsworth Avenue,
Wisner

With

KODinSon-rlumpiirey

(special to the financial chronicle)

ATLANTA, Ga.—John St. John

craigen
pre

nQW

inson

Rhodes

and George W. Gilbert
afiHiated with the Rob-

Humphrey
Company,
Haverty Building.

With Berwyn T. Moore
w....

„

financialchronicle)

otttqvtt t f

LOUISV1
,
Wilson has
technologies which have already with Benvynil.
and obsolescent skills.
so vastly altered our lives
atomic Marion E.T y
Second, I suggest that we make energy,
electronics,
the
n e w bers of t
possible greatly increased busi- chemical and the hew metallur- cnange.

Robert

.nnnw>|J
*
'*

....

The Commercial and Financial Chronicle

(14«)

Form Southwest-Pacific

Continued from

page

capacity. Output
castings. / • \ ... •

Tex.—Southwest-

FT. WORTH,

Demand is

Pacific Corporation has been
formed with offices in the Conti¬
nental National Bank Building to

The State oi Trade and

securities business.
Officers are Jesse L.
Walden,
President; Ivor A Stephen, VicePresident; and Luther P. Hale,
a

V. F. Jones Opens

-NEWTON, 111.—Virgil F. Jones
is engaging in a securities busi¬
offices

from

ness

College Avenue.

inventories.

630

South

and

; r

•

point of its all-time high (set in December, 1956).

It's expected to

reach that level this week.

Opening of the

The employment picture was
virtuallly unchanged between
January and February, Secretary of Labor Mitchell and Secre¬
tary of Commerce Strauss jointly announced.
'

unemployment remained at 4.7 million and State insured
unemployment at 2.5 million in February. The seasonally adjusted

unemployment, at 6.1%, continued at about the

shipping

be delayed by the
worst ice conditions on the upper Great Lakes in many
years,
"Steel" said.
Port openings may be seven to 10 days late, maybe
more, depending on the weather in the last two weeks of March.
Shippers had hoped to start early in April this year. In 1958, the
season started on April 17.
Observers say 70 million to 75 million

Total

rate of total

■

2,619,000 net tons of steel for ingots
..

"Steel's" industrial production index is within one percentage

Employment Picture Virtually Unchanged

Secretary-Treasurer.

;

Industry

\ Thursday, March 26, 1959

widespread that, if automakers decided to cut
back their orders for sheets, producers could ship the canceled'
tonnage to a host of other consumers. Users underestimated their
needs and have made little headway in building strike hedge

February and activity in most industries was at or above previous
highs. Minerals output also increased reflecting gains in coal arid
metal mining.

engage

was

tons of

same

will be

ore

season

shipped in 1959,

vs.

may

last year's 20-year low of

level which has prevailed since November.

j. R. A. Lindsay Opens
NEWPORT
BEACH, Calif.—
Robin A. Lindsay has opened of¬
fices at 2117

vard

West Balboa Boule¬

engage

securities

business.

53 million tons.

Employment in February held at its January level of 62.7
million, with no significant change in the number of farm or

Washington opinion is that there will be no steel strike, the
magazine said. One adviser offers this thought: "You don't get

nonfarm jobs. Total nonagricultural employment
(Census figures,
which include the self-employed,
domestics, and unpaid family

advance.

workers) stood at 58.0 million, while the number of employees on
nonfarm payrolls (BLS figures) remained
practically unchanged
at 50.2 million.
■
' v*
- * '

such propaganda

serious strike when the drums have been beaten for months in
It's like prematurely announcing your availability for

political office.

Machine Tool Orders

Outpacing

tool industry reached

but

steady climb out of the 1958 depression.
Starting/its ascent
October, 1958, it continues upward on a sporadic^ month-tomonth basis.
Both cutting and forming type new orders are be¬
ginning to exceed shipments—a total of $19,150,000 during the
past two months, the National Machine Tool Builders' Association

•

Eisenhower's directive imposing mandatory con¬
imports of petroleum and petroleum products in effect
means that the government will decide what the
supply and price
of oil and refined products in the U. S. should be. This could be a
major step toward public utility regulation of the petroleum in¬
dustry, according to "Petroleum Week," the McGraw-Hill publi¬
cation, out today.
:
;

tion

over

uation

is not to its

liking.

which

operations

will

era

sharp contrast
free enterprise
economy that characterized oil's first
the magazine states. /;
;zV./';Z■"
/z,;.,

weekly- productidri t
~

'?///;,,

;
highest passenger;car>production volume of .1959 was;
by U. S. manufacturers in the week ended March 20/,;

'/;/,/•// •"

was

just short of Zv

: / /
Programmed were 136,409 cars; compared to 1959's present
135,953, recorded :Jan. 12-17. Trucks were estimated at

peak of

25,294 units contrasted do the year's- top effort Of 25,443,
■/Feb. 16-21.

Steelmen Geared for "Fast and Furious" Second
Quarter
Steel mills

The

;

years/V/

100

on; average

"Ward's Automotive Reports" said.; Truck output

industry, one in
to the competitive;,

,\*f•/;;/,Zr/,v/

1947-1949.

the year's best level."

the

for

production;is based

•

scheduled

f "

new

placed at 1,366,000 tons, or-85%;i '1

Highest 1959 /Weekly Car Output Anticipated

the government a control valve V
open the flow of imports if the domestic oil sit¬

The situation promises

.;■>

was

*Index of
for

The President's action gives
can

of the Jan. .1, 1959 annual capacity of 147,633,670 net
tons. Estimated percentage for the week of March 23 is 92.8%.
;
For the March 16 week a month ago the rate was *156.0% and
production 2,506,000 tons. A year ago the1 actual weekly, produc¬

Utility Regulation of Oil Industry Indicated

with which it

/■j

/ Z utilization

President

trols

cpmpbsitejpnjNo^
'jgross/ton. Expert' business i$ Inereasingr

The American Iron and Steel Institute announced that the
operating rate of steel companies will average *163.5% ,of steel
capacity for the week beginning March 23 equivalent to 2,627,000
tons of ingot and,steel castings (based on average
.weekly pro¬
duction for 1947-49) .as compared with an actual rate of *163.8%
of capacity and 2,631,000 tons a week ago.
: v ~
V;
'
'•--'.j ' Actual output for March 16 week was;equal to 92.9% of the

re¬

•'

ex¬

Steel Production Uptrend Unabated

large and small builders report increased inquiries for
orders.
Another healthy sign is the receipt of new

are

last week at $41.67 :a

business for builders of large machine tools—those
requiring nine,
12, and 18 months to build. Some feel the international situation

.},.

Industrial ibuilding, completions

pected to reach $2.1 billion. -By 1960, the total should Tise to $2.5

substantial

place firm orders for long over-due

"Steel" /said.

con-

; billion; 1961, $3.5 billion. In 1957, new construction put in place
/. was valued at $3.6 biUion^'^^
'>v*z• z'O

Although forming type machine tools declined $2,500,000 from
the previous month, the total of
cutting and forming showed a net
gain of $4,450,000 for the month.

struction,

"V.V;!-".

users

experiencing now."

/This'/year/will/seeCthe/istart■industrial

Net nevy orders (cutting type) reached $36,050^000 .in February—up 24% oyer January—and a new high since August, 1957.

has prompted
quirements.

are

reported. U. S. hourly earnings (In 1957) averaged
$2.92; Luxembourgh, 97, cents; Belgium 7(6 cents; West Germany,
69 cnts; France, 58 cents, and Japan/
36/cerits.=
> v

Both

as we

foreign mills which compete with American steel producers, the

/magazine

another rung in ;Tts slo\y

reported March 24.

Bad strikes are those that slip up unheralded by

United States steel wage rates are two to eight times as high
as

The machine

-i;'•

"Ward's'' cited

reached

/-Svr;/Y;//'Z/z zZ-/'

5% ,-upswing inZChevrolet car-making and
continued strong patterns ait Ford Division, {Chrysler Corp., Ameri- ;
can
Motors and Studebaker-Packard^as ^factorsZ in the ; recent

•

are

getting set for a fast-and-furious second quar¬
ter, according to "The Iron Age," national metalworking weekly, v
"Iron Age" said second quarter
production and shipments Z
probably will set an all-time record as the mills and their custom¬
ers try to
get set for a possible steel strike at mid-year.

week's
:Z:

hefty

.Turned

volume/^v^'•*.; i"S\ ,'•/ z/ZZ,:' Y-:
the

out

week

;

previous were §134,283 cars and 24,368
trucks, totals that have been surpassed by 1.6% and 3.8%, respect¬
ively, in the week ended Marph 20.^Qs..*y -V
_\-/.
;

tained

the
at

Chevrolet's -/FIirit ;^ssqrnbly : plantdid
not op¬
16,. because /of :"znpw^|iar£tiriv^ntory adjustments,
"Ward's" said, the Flint plant builtlcai{s; at-its strongest level in
erate

high level but production of finished steel is
tending to lag. Some sources say the inexperience of second and
third work shifts is
responsible.
are

Others feel the mills themselves

will

steel will be
not

have

; a
:

year? Or do

you

put it off

because you're afraid your

might find

"Iron

cancer

years ago.
cans are

you're worried

800,000 Ameri¬

cancer... many

of them

because they had made

checkups

having annual
no matter

close to

how

J Make annual checkups*

June

new

advance

habit... for life!

AMERICAN CANCER SOCIETY

Those who have

will

out

V?'>'
was

5.%/^ofi Chevrolet's

But

pace.

geles and Newark, Del.; units, American Motors and Studebaker-

the

Packard.

point in taking

30—the

steel

"In

were
t

deadline.

Even

was

Pontiac factory in Kansas City (down one day) and Mercury's
Metuchen, N. J., plant (closed all week). Inventory adjustments
were the reasons given for the shutdowns.
'► "♦ /
."Ward's" indicated that the various plant closedowns in the
midst of strong industry scheduling are the result of territorial in¬
ventory realignment of new car stocks rather than a sign of weak¬
.

capacity.

few customers

contract

Working less than five days, in addition to Chevrolet in Flint,
Buick's Flint works (idle one day), a Buick-Oldsmobile.-

some

orders for

any more

orders coming into many mills last week

now

for July delivery, and if

strike the steel will be shipped when the mills
get to it.

sending in business
fact," said "Iron Age," "big steel users
are

this basis.

are

allocation, customers

are

the

ness

overall market.

being pressed

hard by steel salesmen to commit themselves for
steel far ahead of
time.
Although on

urged

give

Electric Output Below Previous Week
The amount of electric energy

re¬

distributed by the electric light
industry for the week ended Saturday, March 21, was
12,900,000,000 kwh., according to the Edison Electric
Institute.
Output the past week was slightly below the level of
the preceding week.
•
For the week ended March 21, output declined by 96,000,000

leases for the exact
tonnage because in many cases they are not

and

taking all they can get. If big steel customers fail to take all they
are entitled
to, sales offices must scurry around and offer tonnages
to customers
previously turned down. And many have since gone

power

estimated at

elsewhere."

This leads

products that

occasionally to paradoxical situations where steel
are

generally in

very tight position from a de¬
livery standpoint can be delivered relatively quickly.
For example: Mills
generally have imposed quotas (alloca¬
tions) on flat-rolled products. Yet two mills, at least, are reported
offering three-week delivery of hot-rolled sheets.
<

kwh.

below

continue

ship all the steel they
on

March 23.
The

area

can

under heavy pressure to produce and
make by June 30, "Steel" magazine said

Car

where

they

are

that

mills

are

Loadings 10.4% Above Corresponding 1958 Week

of revenue freight for the week ended March 14,
1959, totaled 595,302 cars, the Association of American Railroads

at 92.5%

This

was

increase of 56,175

cars,

10.4% above

the corresponding week in 1958, but a decrease of 93,924 cars, or
13.6% below the corresponding week in 1957.

Loadings in the week of March 14

meeting resistance to raising the operating

Mills operated

the previous week, but showed a gain of
9.7% above that of the comparable 1958 week.

were

628

cars,

one-tenth

below the preceding week.

rates above 92.5%. Demand for
light and heavy products is well
balanced and closely attuned to the
industry finishing capacity.

Production leveled off last week.

of
or

Loadings

of 1%

metalworking weekly commented

that

1,144.000,000 kwh.
.

announced.

Washington Opinion No Steel Strike
Steelmakers

they went

to their doctors in time!

production.

delivery.

incoming orders have leveled off at

Many mills will accept orders

well they felt... all of
them because

said

shipment before
the amount of

alive today, fcured

habit of

Age"

Quite

about, remember that doc-

Semi-finished inven¬

exceed

CK'
program

enjoyed one of its better weeks/also, and intended to run
five car-making plants on March
21./.Z/;; ;
; ' ,
\
.
"
Other factories turning out autos /six days were the Lincoln- ?
Thunderbird plant at Wixom, Michij/Plymouth's Detroit, Los An¬

there is

; tors are curing many more
^ cancers than
they could ten

;

themselves weeks

mills only because there is

•

will

Division's

some¬

thing wrong?
If It's

Shipments

available for immediate

committed

really too busy to

health checkup once

I doctor

reduced.

cold."

Are you

Ford
Ford

quarter," predicted the metalworking weekly,

"this situation is
expected to reverse itself.

tory

March

four weeks;

•

building inventories of ingots and semi-finished steel.
"In the second

;

Although

moment, said "Iron Age, steel ingot output is main-; :
a

Lumber Shipments 4.4%

Above Production

For March 14,
.

Lumber

shipments-of

Trade

Barometer

485
were

mills
4.4%

Week
reporting to the National
above production for the

Volume

189

Number 5832

;

week ended March 14, 1959.
were

atubuiiteu

utinjueu
rent

uraers were

same

were

steady. Some scattered sales of flour were made to Norway,
but otherwise the export market lagged. While domestic orders
for rice were unchanged this week, export buying moved up, with

production.

44%

In the

week new orders of these
Unfilled orders of reporting
softwood mills,
equivalent to 21 days production at the cur¬

above

nuns

nixjiitt

The Commercial and Financial Chronicle

For reporting

of stocKS.

inquiries from Turkey and Ceylon; rice prices
the preceding week.

raic, ana gross stocks: were equivalent to 44
f or

were

1*4%

auct^Oi!.

days' production.
of reporting identical mills
production; new orders'were b*.l% above pro..V" ';■■

year-to-ctate,

aoove

shipments

Sugar trading in the domestic market picked

week ended March 14; as compared with the previous
production of reporting mills was 3.4% above; shipments,

were

dipped; this resulted in a slight decrease in coffee prices. Much
sluggishness in the coffee market was due to buyers awaiting
the outcome of meetings soon to start iri Washington among coffee
producing countries in Latin America to set quotas for the second
half of the quota year beginning April 1.

below; new orders, were 2.4% below. For the latest
week, as against the corresponding week in 1958 production of
reporting mills was 8.7% above; shipments were 18.3% above; and
new orders, were 10.9%
above.
•
■
-

Business Failures Off

Wholesalers reported a moderate dip in cocoa trading during
the week and

Slightly for March 19 Week

limited. Prices

Commercial and industrial failures dipped to 292 in the week

ended March 19 from 311 in the preceding week,

Hog trading picked up at the end of the week and prices fin¬
ished slightly higher; the salable supply of hogs in Chicago mar¬
kets was close to the prior week.
Cattle receipts were down
noticeably fyom a week earlier, but trading was steady; prices on
steers were up fractionally. There was a slight dip in lamb prices
as trading slackened.

Liabilities

";/•/.

,•

$5,000 or more were involved in 256 of the
week's casualties as against 262 in the previous week and 305 last
year.
A decline also prevailed among small failures, those with
liabilities under $5,000, which were down to 36 from 49 a week
in

excess

week ago.
'
All industry

'/.,.-•//"/',///
except

Central States. S

remained

year-to-year

" .i1.;/

with

even

1958.

Some

declines 'appeared

The

South

total

dollar

volume

retail

trade

the

week

ended

tral and South Atlantic

-f-4 to -f 8; Middle Atlantic, West North
Central/and West South Central +2 to -f 6; East South Central 0
to +4; Mountain —2 to -f2; New England —5 to —1.
'.•»
Apparel stores reported the most noticeable year-to-year
gains in women's Spring dresses, suits, millinery, and accessories;
volume in furs and sportswear was up moderately. Although in¬
terest in men's clothing advanced from the prior week, it re¬
mained close to a year ago; best-sellers were neckwear, dress
shirts, and hats. There were substantial gains over both a week
earlier and last year in the buying of children's merchandise,
especially girls' dresses, blouses and skirts.
Although interest in upholstered chairs and bedroom sets
was close to a year ago, total sales of furniture showed moderate
declines. Purchases of major appliances slackened from the prior
week and were down substantially from the similar 1958 period.
While moderate year-to-year gains in volume in floor coverings
were
maintained, the call for linens and draperies was down
somewhat.
Slight increases from the prior week occurred in
sales of garden supplies, paint, and hardware.
The buying of dairy products, fresh produce, and baked goods
heightened this week holding total food sales appreciably over a
year ago.
The call for fresh meat, poultry, frozen foods, and
canned goods was close to a week earlier.

February Business Failures Down in Number and Amounts
Declining in nearly all regions and in most lines of industry
trade, business failures were down 9% in February to 1,161.
Although casualties dipped 6% below the comparable month last
year, they remained above any other February since 1939.
Conr
cerns failed at a rate of 50.9
per 10,000 listed enterprises. Dipping
fractionally from January, this rate was the lowest in 19 months.,
:
/. Dollar liabilities involved in February casualties dropped 20%
to $58.6 million. Except for January, however, they bulked larger
than in any month since July.
v
*•-:
Commercial service tolls" continued ..up to the highest level in
six months and ranged a third above February last year, boosted
lsirgely by increases among transportation concerns. Declines from
January prevailed in other major, functions; the sharpest down¬
turn occurred in.wholesaling, primarily in the.building materials
and,machinery trades.
~
*/
While manufacturing casualties held about even with a year
ago, mortality in the trades and construction fell 7 to 12% below
1958 levels. Among retailers, trends were mixed: tolls increased
mildly in food and general merchandise stores;.held even in build¬
ing materials arid restaurants; dropped-27% in apparel, although
liabilities remained high in women's wear; and declined some
20% in the furniture and automotive lines. In construction, gen¬
eral builders had the lowest toll in over a year and a half, sub¬
contractors held steady at last year's level, and heavy construc¬
tion mortality rose from February, 1958.
Seven of the nine major geographic regions reported Januaiy-to-February declines, and a general downturn also prevailed
.from year-ago levels. Only the Middle Atlantic and East North
Central States suffered heavier tolls than last year.
New York,
Ohio, Illinois/and Wisconsin, accounted largely for these two
regional increases. Declines ranged from 15 to 29% in the remain¬
ing seven regions, with the Pacific total at the lowest level in
three years. Considerablv fewer businesses failed than in Febru¬
and

Nationwide Department Store

sota.

advanced

Fractionally

similar date

year

meats

general

the
use.

last year.

In the preceding

the

corresponding period in 1958.

John Street Investors
Herman

ing in

represents
price per pound of 31 raw foodstuffs and
It is not a cost-of-living index. Its chief

function is to show the general trend of food prices at the whole¬
sale level;

McMahon, Lichtenfeld

securities business from

at 76 John Street,
City, under the firm

New
name

John Street Investors.

G. Manning Opens Office
Y.—Colette M.
Manning is engaging in a securi¬
ARDSLEY,

Admits Two Into Firm

Krainman is engag¬

offices
of

The Dun & Bradstreet Wholesale Food Price Index

total

like period

ceding week, March 7, a decrease of 1% was reported and for the
Feb. 21 week a 47%? increase was recorded. For the four weeks
ended March 14 an increase of 4% was noted over the volume

York

quoted higher in price this week were wheat,
corn, rye. oats, beef, bellies, lard, tea, potatoes, steers, and hogs.
Lower in price were flour, hams, butter, coffee, and .cocoa.
sum

ties business from offices

McMahon, Lichtenfeld & Co., 25
Broad
Street, New York City,
members of the New York Stock

Exchange, on April 1 will admit
Sidney Polay to general partner¬

and Denis J. McMahon to
partnership in the firm.

ship

limited

Reflecting higher prices on hogs, steers; rubber, and some
grains, the general commodity, price level rose fractionally this
&

Bradstreet

Daily Wholesale Commodity Price
a week earlier, but
high cf 278.25 set on March 11.
The
index compared with 281.96 on the comparable date a year ago.
Index rose to 278.18

remained

below

Trading in

the

March 23 from 278.01

1959

Robert Cohen Opens

and oats expanded steadily during the week,
and prices were slightly higher. Reflecting an increase in stocks,
prices on wheat dipped somewhat wheat trading was close to the
prior week. Volume in corn was steady, but prices were frac¬
tionally lower. There was little change in soybean prices, but

Although flour buying

was

well

594

having
of

in rural

communities

of Ohip,
estimated population
1,665,000. It also sells
electricity
at wholesale to
20
municipalities, seven rural eoop4
as

areas

about

eratives

and

two

other

electric

companies in Ohio, and supplies
steam heat iri the downtown

busi¬
Spring¬

ness

sections1

field

and Youngstown. The com¬

Akron,

pany
also
owns
all
of
the
outstanding
common
stock
of
Pennsylvania Power Co., which,
furnishes electricity in 134 coriU
munities in Pennsylvania, having
an estimated population of about
257,000.
M*/
For the year 1958, the company
and its subsidiary had consoli¬
dated operating revenues of $13%650,000 and consolidated net in¬
come

$25,719,000.

w"V

Edwards! Hanly to;

SponsorCanada Forum
HEMPSTEAD,
"treasure

house

Y.—
the

Western

World," will be described by SJr
Louis Beale at the Huntington
office of Edwards & Hanly, mem¬
bers of the New York Stock Ex¬

change, it

announced by the

was

brokerage firm.
"Canada's rich

mineral

re¬

expanding industries and

unparalleled
water
power
aw?
becoming increasingly important
in the world market,"
according
to Edwards & Hanly. As part of
its Community Service Prograiri
the

its

investment
own

clients

firm

well

has
as

invited
the gen¬

public to hear the investment
potential in Canada discussed try
eral

economic

Sir

authority

Louis

Beale,
K.C.M.G.,
C.B.E.,
Investment
Consultant,
formerly was British Government
Commissioner

Canada.

BROOKLYN,
N.
Y.— Robert
is conducting a securities

business from offices at 1820 East
13th
of

sluggish again this week, prices

Street under

Mutual

the firm

Investors

name

Florida Investors Inc.
TAMPA,
Fla.
vestors,
Inc. is

(Special to The Financial Chronicle)
.

SAN

FRANCISCO/Cal.—James

J. Bach and Kenneth M. Ball are

connected

Pont

Street.

with

Francis

Open-House will jbe held
at the Edwards & Hanly office in
Huntington, 417 New York Ave.,
oil Wednesday, April 1, 8:30 p.m.

With Wm. H. Tegtmeyer
(Special to The financial Chronicle)

CHICAGO, 111.—Sheldon Wein¬
berg has been added to the staff
of Wm. H. Tegtmeyer & Co., 39

Joins Bankers Bond

(Special to The financial chronicle)
LOUIS, Mo. — Frank A.
LOUISVILLE, Ky. — Arvil L.
Zein has joined the staff of White
&
Company, Mississippi Valley short has been added to the staff
Building, members of the Midwest of the Bankers Bond Co., Inc,
Stock Exchange.
Kentucky Home Life Building.
t

Company.

Francis I. du Pont Adds

now

The

ST.

Cohen

rye

transactions weakened.

service

tric
as

Joins White & Co.
(Special to The Financial Chronicle)

The Dun

arid

special redemption prices re¬
ceding from 101.155% to par, plus

South La Salle Street.

Hill-

crest Avenue.

Wholesale Commodity Price Index Up Slightly

week.

prices

par,

Trade

Commodities

the

According to the Federal Reserve System department store
March 14 showed a
8% decrease from that of the like period last year. In the pre¬

row,

ago.

bonds will be redeem¬

the Wholesale Food
Price Index, compiled by Dun & Bradstreet, Inc., moved up frac¬
tionally. On March 17 the index rose 1.0% to $6.19 from the
$6.13 of the prior week, but it was 7.2% below the $6.67 of the
a

above

sales in New York City for the week ended

in the

Wholesale Food Price Index Rises

week, for March 7, an increase of 5% was recorded.
For
four weeks ended March 14 a gain of 11% was registered.

For the second consecutive week in

new

sources,

Sales Up 9%

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended March 14,

1958, in Louisiana, Oklahoma, Mississippi, Kansas and Minne¬

ary,

The

Ohio Edison Co. furnishes elec¬

March 18, was 3 to 7% higher than a year ago,
according to spot estimates collected by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1958 levels by the
following percentages: Pacific Coast +5 to -f-9; East North Cen-

■

.....

treasury

expenditures already made.; J*

able at regular redemption

Shopping Boosts Retail Trade

Wednesday,

the

about" 699,000 bales

shopping in the week ended March
20, offset the effects of bad weather in many areas boosting total
retail trade appreciably over a year ago. Consumers were more
interested in apparel than in household goods, as is usual in those
pre-Easter weeks/ Qains over last year in women's apparfel and
food products offset declines in furniture and appliances.
Sales
of new passenger cars moved up moderately and volume remained
well over a year ago, according to preliminary reports.

steady at 110; those in the South Atlanticedged to 28 from 27, and those in the Pacific States rose to 68 from
61. Casualties were lower than last year in all regions except the
which

A noticeable rise in Easter

failures held

noticeable

amounted

for

accrued interest in each case.

declines also prevailed in the New England, West North
Central, East and West South Central States.
Meanwhile, Middle

Mountain. States

Easter

erate

most

mortgage

ranging from 105.66% to

Feb.

Bureau of the Census.

the East North Central total turned down to 42 from 50 and mod¬

Atlantic

first

the reimbursement of its

compared with
639,000 in the similar 1958 period, according to the United States

■

retailing and wholesaling had
lower tolls during the week. Casualties in manufacturing dipped
to 47 from 50, in construction to 43 from 50, and in commercial
service to 22 from 39.
Running contrary to this week-to-week
decline, failures among retailers edged up to 153 from 149 and
among wholesalers to 27 from 23.
In all lines, fewer businesses
succumbed than in the corresponding week last year.
>;Five geographic regions accounted wholly for the week's dip:
groups

$30,000,000

Co.

ended

- Concerns
failing with
$100,000 numbered 25, dipping from 27 a

•

Ohio Edison*
bonds, 4^%
series
due
March
1,
1989,
at
101.155% and accrued interest, to
yield 4.43%. Award of the bonds"
was
won
by the group at com¬
petitive sales yesterday (March
25) on a bid of 100.395%.
Net proceeds from the sale or
the bonds will be used by the
company for the expansion and
improvement of its facilities, or
the improvement of its serviqef
the discharge of its obligations, #r

26)

prices on the New York Cotton Exchange finished the
week slightly higher than the prior period. Trading was strength¬
ened by expectations of a tight supply of cotton before the new
crop reached the market.
Cotton consumption for the four weeks

Cotton

earlier and 52 in the similar week of 1958.
liabilities

Halsey, Stuart & Co. Inc. is man-#
ager of an underwriting syndicate
which is offering today (March,
;•

gain in transactions.

reported Dun &

Bradstreet, Inc.
Considerably, fewer casualties occurred than a
year ago when 357 businesses failed or in 1957 when there were
318. Also, failures fell 17% below the orewar total of 350 in the,
comparable week of 1939.

were slightly lower; inventories were again
hides moved up appreciably reflecting a marked

prices
on

Bonds at 101.155%

at the end of

of the

u.1%

Offers Ohio Ellison

the same as in

the week, but prices remained unchanged from the prior week.
There was a moderate decline in coffee supplies, but trading

r or

week,

were

Halsey, Stuart Group

Co., 317 Montgomery

Florida In¬
engaging in a

—

Now With Marshall Co.
(Special to The Financial Chronicle)

MILWAUKEE, Wis.—Melvin H.
securities business from offices at Moehrle is now with The Marshall
2702 Azeele Street. Officers are Company, 765 North Water Street.
Chas. Fending, President; M. G. He was formerly with The Mil¬
and-Merrill
Gibbons, Secretary; and Lester waukee- Company
Lynch, Pierce, Fenner & Smith. Ryals, Treasurer.

The Commercial and Financial Chronicle

(1448)

Continued

wisp. We may continue to chase
it, but we will never catch it,

from page 15

When Can

Federal

Reduce Federal Taxes?

nlanV fnrTnv rvchu-lTnnTh^

have

budget, makes clear that citizens from the legislature to the exeeuachieved generai acceptance
Inmeekly accept every and five. Congress is extremely undeed
the
of
each spending proposal as rnevi- likely, this year at least, to give
the Committee on Wav and Means
table or even desirable. The ob- such power to the President.
jeetives of this budget are clearly
The President's concern over
laid out: national security with a better fiscal procedures is wel-sa,.™,i.
hntiHat nn' mnmi
rebalanced
budget fostering eco- come. It has been clearly demon.
)h
?
,
is
nomic growth and sound dollar, strafed over a period of years that
,ntomt lax ww ,s
and a hope of substantial tax reCongress lacks annual control over
1
'
■
duction in the not
too - distant spending.
As long ago as 1951,
The vexmg problem oi the tax-

announcednrogmm

future.

the

Nowhere

evident

than

this purpose more
in the President's

blueprint to reduce spending next
year and the year after. The new
blueprint for long-range savings
Consists primarily of major reeommendations designed to revise
certain statutory programs to
adapt them to present-day condilions. Briefly, these proposals include:
First, expansion of state
and local participation in a large
number of
programs,
including
urban renewal, flood control,
school aid
in federally affected
areas, waste treatment, construe(inn
vnidinnu 1
nrlm-nfinn
rmhlir
lion, vocational education, public

Tax

Foundation

pointed

out

ation of the income of coopera-

that two-thirds of the then budget

Congressmen

need

clear

un-

derstanding of how Congressional

ing inflation; Congress badly needs
to adopt procedures to enable it
to relate total expenditures to tofal

for

vouon.ioe

iho

HnrW

tee

subcommittee of the Commit¬
Ways and Means has held
on
the taxation oi life

hearings

est rates

difference.
difference.

vonr-

such

The proposed budget for 1960 is

bj no means an austerity budget,
A
nronariniie
l-mlonnn
inrlnnd
A precarious balance, indeed a
of outmoded farm price support $70 million surplus, has been
laws to reduce the burden on the achieved by moving a payment of
Treasury and hasten needed adbillion to the International
Justments in agricultural pro- Monetary^ Fund from 1960 into

Third, in the ambitious blueprint for future savings is revision
:

1959; by the termination of vari¬

duction.

Fourth, revision

veterans'

ous

gram in the light of social devel¬

opments and changes. This is particularly significant in view of

nonrecurring

few reductions in expenditures for

demands for widening veterpensions without regard to

new

ans'

wartime injury, such as the costly
proposal now in Congress to give
all veterans of World War I

$100

flat

month when they reach the

age of

60.

Finally,

the

President

recom-

mends appraisal of the system of
subsidies for the American mer-

chant
cost

marine

the

and

reduction

and

programs;

by an increase of $9 billion in es¬
timated lax receipts.
There are

laws to modernize the benefit pro¬

imim nmnntt

lor fiscal IJoO, $4a4 million

^3^(1959?^and
^eai t .yaO) and

billion^ih'ovp
$2 billion above
$2

expenditures for fiscal 19o8. This
1S bardly austerity nor is it pinchb,as b,Yen
cbaiged by the Presidents critics,

taxpayer for services

A Congress stimulated by a vig-

by increase of
postal rates and adequate charges

orous popular interest in economy

special

groups,

beneficiaries

Federal
In

various

other

services.

his

message, the President
chows unusual concern over the
need for reforms in

existing fiscal

procedures.
lions that

Ihe

The

men-

beginning is made in

fiscal

President

1960

budget

toward

nr-clv Ihnt

gram

costs

$6 billion
produced higher

bas

sell at

propriation

ing

Guard, the Gen-

year.

Even

give

prices

It
for

to
Agricultural spend-

amounts

away

than

$1,000 for every farm in the

SSSE8and th+e
nf

loss.

now

Jfal Services Administration, the try. The
nn

coun-

program is not produc-

satisfactory results; is based
eiioneous premises, is much

+°Verilm

important, and more too expensive; and should be drascontroversial, is his recommenda- tically pruned,

authority to

l^or

reduce items
in appropriations bills and in
bills

authorizing

expenditures

thenfP^t0nP"a«°?f
hppn

nrnnn'spd

Fvrd

states

F0^.8-

where

^ President has suggested, with subkteaniS htftantial savings to the public. If
^ '

many^governors^ave SScfh, that

^thout vetoing the bill^as'a whole,
bill
whole'

\vitnout

as a

undoubtedly,
should be

merits

the item veto
great economy weapon

^oweve/do

frmtfr^cc

nosed

posed as

vtrVii/-b

'decieneH
designed

not anneal

,,;a„ro

to shift powers
•>'r

Yet

much

impos-

our

growth has been based

economic

Offered at S91/2a Share
Public
of

offering of 275,000 shares

United States Servateria
stock

common

($1

the ac-

Oil

cumulated savings of individuals;
the ability of an individual to
back

a new idea or a new inventton wtth his own money. He may

Corp.
value) was

par

MiVo5 2a!

g) r,f ^he stoclf is^ nrhwi

mopi

Noel &

The stock is priced

at $9.50 per share,

None of the proceeds from the
win. or, more often, he may lose; sale of the shares will accrue to
but the sum of successful risk in- U10 company as the stock is alvestments made by individuals has ready issued and outstanding and
added up to sustained growth in is being sold for the account off
our
economy. Without such sav- selling stockholders,
continued

^
ings,

becomes

steady
y

advance

MV,

much

doubtful.

United

States

Servateria

Corp.

incorporated in California in
1937 to acquire a business started
in 1927 by the same management
was

vantage

?t7°
to

the

^e'greaTaS:

taxpaying

public

reduction

possible in place of

™diess tax increases. Unless
,

°an really
—,
". J

Vnder control
tax

get
&v-v

the

Con-

budget
uuubcl

balanced.

demanding"all

re-

nbT i° *ood maikets, and include
housewares and h a r d w a r e s,

un-

drugs, cosmetics and notions, toys

view, the

our

sorts

will

and

games,

products

paper

and

new

states and localities and

individuals

even

the

jobs which
they can perfectly well perform
for themselves; if we will resolutely cut current Federal ex-

novelty shops and manufacturers,
B operates in southern California,
Arizona and Nevada,
Capitalization of the company
consist of 1,000,000 shares of com-

penditures to fit within current mon stock, of which 550,000 shares
Federal revenues; then we can are outstanding. The
company has
reasonably hope that? the* normal.: 'no funded .debt
growth of the country will presyear
For the yeai ended June 28,
ently produce an excess of rev- 1958, the company had sales of

ll+4-1*V

ftin

The Corporate Income

Tax

That

The corporate income tax, which
now takes
UP to 52 cents
every

immr

liffln

dollar of

a company's
obstacle

profit, is

business

enterprise

system

on the premise that

corporations and their stockhold-

last

word is not

discourag-

t"ew years, if
soive to

ask

wji

indeed

more,

year,

the

reasonable

after

expecta-

Ron

^ba^ a piant) kept constantly
up-to-date, will yield an adequate

return

investment.

steadily

We have

increasing
history of

discarding

machines before they
out, as soon as more ef-

costly.

new

Because

the

decisions,

tax

sure

that

our

tax

slow

halt

technological

progress—the very kind of progress that has made our economy
so

There
as

have

this

improve the
ductivity of

been

many

recent

efficiency
a

factory

and

the

agement needs to replace
machine

Twenty

even less? that

000, but the
wni

{

tax

years

mLwne

proman-

certain
aeo

cost $100,-

laws

Now

tho

tie

allow

plant

own

^.r

Walston

LUIS OBISPO

with

Tnp

Anderson

formerly

wis

nrp<?

firm

and

with

more than half of the profits,

tronic

and
sup-

microwave

instrumentation

tom-built

test

types of elec-

puise modulator*

power

1944

components

communication

high

and

"for

cus-

radar

systems

Wal-

Revnold*

BURLINGAME, Cal. — Stewart,
Eubanks, Meyerson & Co. has
opened

Camino
ment

Two With

precision

leading

Stewart, Eubanks Office

Hotel

.branch office at 1853 El

Real, under the manage¬
Banjamin C. Chapman.

New Sutro Bros. Office

Copley

MIAMI

(Special to The Financial Chronicle)

COLORADO

SPRINGS, Colo.George Blitz and Burton K. Elbart are now connected with CopleY and Company, Independence

BEACH,

F la.

—

Sutro

Bros. & Co. have opened a branch

office

1359

Northeast

163rd

Street under the direction of Peter
Wolf.

Building,

Walston in Wichita
Investment Service Adds
(Special to The Financial Chronicle)

WICHITA,

Kans. —Walston &
Co., Inc. has opened a branch of-

DENVER, Colo.—Gerald O. Es- fice in the Bitting Building under
sendrop and Theodore B. Gazarian the direction of W. D. Fleming.
have

become

"av.e

connected

with

In-

eumiecieu wim 111-

machine^ vestment Service Company,

wear out, a firm must raise new
money just to stay in business.
As the government already is get-

equipment

SUCCessor

Cal -Rob-

Rnlman

.for,

is the

founded

since 1954 has been

pRer

stockholders;

Staff

new and better model

coc;t $250 000

Thus,

cam

Prf

eases

years:

his

(special to the financial chronicle)

productive of wealth.

such

Joins

busi-

provisions

FXR? Inc
partnershio

ailu

being sold

are

bebaif 0f selline

and

even

maks

exercises

man

affairs.

system

should

prudent

are more

effect

enormous

ness

not

along,

come

machines

from the Federal Government,
Then we can fairly ask our representatives in Washington to exercise the same sense and thrift
in analyzing and adopting the
national budget that the ordinary

and

company
LU,llwauy

we will simply re- 100>000 shares
no

erS wil1 invest~win "Plow in"— some of us will ask a little less,

more and more money, year

26)icb total^of ^OOjOOO^hare^of

j"g, indeed, it is a note of hope. FXR> Inc common'stock ($1 par
pur Federal tax system needs to value )*at'a"price"of $lTper share.
be
Srr?i?d* -5ates need to .be
Of the 200,000 shares offered,
f^uced. We^c,teens .can^reqmre 100000 shares are being sold for
the job to
the account of the

First

ding.

10na
tvt

J. B.

Joseph Admits

r\cc

INew bhaskan Urtice
PORT JERVIS, N. Y.—Shaskan
FORT JEKVIS,
Y.—Shaskan

April 1 Leonard W. Bauer
will become a partner in J. Bernard Joseph & Co., 72 Wall Street,
New YorK city, meinoers
new York City, members of the

SKtSSS New York Stock Exchange.
alTon The'ir invertmS r6tUm ™ement 01 Willlam A' Ba"'v' Sloan, Rodetsky Admits
,

The

JERSEY

Frustration of Savings
Investment
same

inability to

order to invest in
uiuex
tu invest in

new

and

With

Cruttenden, Podesta

(Special to The Financial Chronicle)

save in
plant is
piani

LINCOLN,
j_<awieiice
Lawrence

true of the individual. Vice-Presi-

with

will of the

dent Nixon has recently reminded

Trust

Hence,

necessary expenditures.

in these good times,

reduction is just

??_"!???L

want to see the Federal budget

first step toward eventual tax
duction is the reduction of

$12

thriftJ bouse- ting

would then be that tax
would become

a??eai!° °
^re?s

chiff

saving is very difficult,
sible.

rates

ermfs^'lrograms5' *n 0™ costog ment^but6 only lo'sl eists^nd
about $5
billion'per ylr, could nrt4e^"ncleasei^ purchase'price
be "revisedTnd modernized
asThe 7a"nermSr«kil£

+1? n? Past by such the President's blueprint were
nil!?1
a?, ?a 25 9arrie.d through with the care and

outside

tax

In either case,

enues! so that it will become pos- $11,319,176 and net income of
sible to revise and reduce taxes, $349,798, equal to. 64 cents a cornincome taxes
and that whatever and
perhaps even to pay off a mon shaie.
!
form the tax legislation mav take
httle of the debt. I see very little
it jnust produce that amount
The ^op® ot tax reform or tax reFXR Common Stock
Committee premise is the'more duction
until expenditures are
vuinerable in the light of evidence brought vigorously under control.
that life insurance savings are ala Share
cann°t ask the Federal Gov- Offered at
ready more heavily taxed than ernment to do all things for all
q
Unterberg, Towbin Co.,
other forms of savings.
men, and, still tax us less than " heads
an
underwriting
group

has

Government

among the Coast

their

life insurance companies must pay
a
balf billion dollars a year in

ommends Congressional re-exami-

recommendation.
Such
limitations are imposed in six

provisi^^^^

'es'siationnas proceeaea on a

though the

mission

ap-

promptly the President's blueprint
for savings. The President rec-

consumers and steadily increasing
surpluses of commodities for the

scattered

taxing

reduce Federal expenditures are worn
materially by carrying out ficient machines

nation of existing programs generally deemed sacred and beyond
attack. Thus, the agricultural pro-

expired;

seems

<^im^^anentJ.e^sla
the subject, adopted
in

ran

limitation upon accrued expendilures, as authorized last year in
Ihe law following a Hoover Com-

accounts

one

j^e^dfng:. grants from the high- growth. Our
]Yay ^^fiscal^1060Se«S454^ million has been built
.

has

satisfied
Permanent lesMa

With the Federal debt
With the Federal debt

veterans' housing loans; rental, already at $285 billion, Congress
military and cooperative housing has pretty well worn out .the., demortgages; r u r a 1 electrification vice of financing current expend,and telephone loans; college hous- tures out of I.O.U.'s, rather than
Ing loans;, and maritime mort- out of taxes.
(gages.

companies

since

and

that

high.

soft goods. It also sells to departinsurance companies.
Since the subsidieg and pr0grams and activi- ment stores, drug stores, hardware
legislation w h 1 c h has recently
from Washington* if we will stores,
variety stores, gift and
been in effect to tax the income
If'
1, nnveltv shnns anrl mnn.rfarfnrprc
return to

vision that expenditures shall be
kept within expected revenues or with so
tion
on
taxes proposed to make up the

•— j.

too

U. S. Servateria Stock

political struggle before any such
fhintf is done.
thipg is done

action

on money bills affects the
national debt and ever-threaten-

Second, the President proposes
encouragement of more private
financing through flexible intercredit, programs
credit nroerams

Thursday, March 26, 1959

This is one job that government
was beyond annual control of the sidcration by
tne^ecretary ^
do for us half gQ well as we
regular appropriations processes freas^
can do it for ourselves.
which directs the company today,
°[ Congress.
Many of us who would like to Beginning In 1939 and until Jatt|
as bad today. In dealing with a
business cornorations*
and some see taxes reformed and reduced as 22,
1959, the company operated
dozen separate appropriations
addRjonai
+ax
reve„ue
W0llld a means of insuring continued eco- under the name of Umted States
measures, Congressmen are given
Treasury
But there nomic growth are nevertheless en- Hardware & Paper Co. The comlittle help in relating proposed
^
bab]
be a considerable *>Ued In the army of citizens who TO* '* •
spending to expected revenues

tal revenues for the budget year;
accompanied by the further pro-

such

tax

confiscatory"

assistance and disaster relief.

feel

also

are

reports of Congressional
have not disclosed any

need not

income

personal

"almost

brackets

Taxes Be

Reduced?

Early
J
activity

the

are

the higher brackets. Taxpayers in
the
middle
brackets
and
lower

Congress

that

rates

nas
has

Neb.

—

Stock
aunni

Cruttenden, Podesta &
Building.
n<.

Co.,

J. —Sloan,

& Co., 26 Journal
Square, members of the New York

aniiiatea
affiliated

Ralph

become
cecome

CITY,

Rodetsky

admit

Exchange,
Andrew
nnuiew

Indursky
nership.
Harry

■-?;

r<< *

i_i.

March 26 will
Wormser
vvunusci

limited
trr'

and

emu.

part-

Volume

Number 5832

189

Continued

from

page

The Commercial and Financial Chronicle

(1449)

ington, D. C., has

the

Brainwashing and
Bankrupting Americans
the

fend

funds

the

demanded

de¬

Committee

"believers"

summarized by stating that there
is not one critic of foreign aid

Now, with the approval of the
President,
$3,200,000 of Mutual
Security Funds have been "trans¬

ferred" to finance the
Park

scheduled
After the

Moscow,
July 4, 1959.

open

hibition

has

the

run,

will get the
Uncle Sam at a

Russians

building

from

fraction

mere

ex¬
six-week

its

ended

construction

its

cost.

New "Blank" Checks Demanded

Several years ago the President
asked Congress for a $100,000,000
a period
for the purpose of
making long-term "loans" to un¬
derdeveloped countries. The Con¬
gress, properly and promptly re¬
jected this request.
a

"blank" check for

year

years

Now, under the name of the
Development Loan
Fund
the
White House is insisting that it
must have not $100,000,000 but ap¬
proximately $700,000,000 per year
for years
to come and for the
same
long-term
global
bribery
idea that Congress once rejected.
More

that

and

most

made

Fund

will

the

realized

so-called

loans

the

Development Loan
up in thinly dis¬
guised grants in aid and that a
large increase in the annual lend¬
ing will result in further heavy
long-term
expenditures
over
which Congress will have little if
end

knowledge

any

control.

Recently, the President pub¬
licly stated that Foreign Aid is
not popular with the American
people as a political issue.
He
never

was

correct. This

ex¬

plains, perhaps, why the subject
giving
away
our
resources

under

the

name

curity

was

not mentioned in

Mutual

Se¬

the

Presidential Campaigns of 1952 or
1956. And in the recent Congres¬

the entire membership of
picked" White House

"hand

In the face of our

Deficits

Federal

tions

for

giveaway pro¬
has come to

bigger

time

grams.^ The

has

annual promo¬

to end these

come

time

the
White
House
greatly expanded
Development Loan fund is largely

device to deceive the American

tired of give¬
and to make it easier for
bureaucracy
directing
our
foreign aid to commit funds for
taxpayers who are

aways,

the

purposes

conditions

and under terms and
that would normally

provoke Congressional criticism.
The majority of these soft loans
are fraught with
danger and the
entire operation lacks candor.

Recently,
the
President
ap¬
pointed a Committee to study the
Military Assistance program.
Its
preliminary report is scheduled
for March 1,
1959, therefore, it
can
be assumed that, as in pre¬
vious

years, the report
Committee will have no

the

size

the

this

bearing

White

House

foreign aid demand for the new
fiscal
year.
The
Committee,
headed by William H. Draper, Jr.,
is heralded as a group that will

would

further

the

reversing

Eight Points for Americans

^Zt^irSSS

Here are eight steps that the

peoples would be benefited. Pub-

in
in

the United

for

Daid

States

Stevenson's
his

exnedition

Union

from

ex-

the

collect

was

rovalties

for

original

(1) Under no circumstances
should the Federal Budget for
1960 which begins next July 1 exceed $65,000,000,000. Even this

Also, his current demand for
$250,000,000 in the form of a supplementary appropriation should
be rejected together with all other

un-

the

Russians

work? of American

literary

huSe amount will make

supplementary appropriations,

pro-

visioa. fo£, the reduction of

our

(7) The power to control the
pursestrings of the Nation should
be immediately restored to the
Congress of the United States

would

not

crushing Federal Debt.

listen, much less discuss this.

In-

(2) All new plans and projects
that start in the millions and end

authors.

stead
for

The

Soviets

Khrushchev

utilized

Adlai

Red

SSigtiST

m°b -maShed 287

f^Sca? ^ The" five^r lix befo^'attempted"1during3 the^n.

Kremlin

Khrushchev's constant worry
the

90,000,000 people in the satel¬

that

know

and

once enjoyed, will fight
regain their freedom.

they

For

years

Secretary

others, have publicly

and

Dulles

political leaders,

our

Eisenhower,

President

vast
population, en¬
deprived of liberties

this

war,

slaved

incite

they

Iron

the Krem¬

Curtain. The rulers in
lin

the

behind

states

slave

lite

proclaimed our determination to
bring freedom again to the satel¬
lite people.
For years we have
been spending hundreds of mil¬
lions of dollars to propagandize
enslaved

these

vocative

with

pro¬

the

masses

false

and

nonsense

promises of our highest govern¬
ment officials.
Despite this mis¬
erable

record, many millions of
these
helpless
people
did
not
abandon hope.
Budapest was a
tragic example.
Now,through the infamous U.S.¬
pact, our

of people who, for more than a
decade, have had faith in us. This
was Khrushchev's greatest victory

1958, but a great disgrace for
the American people.
For when
U. S. Under Secretary of State,
William S. B. Laicey, signed this
in

dishonest

the

with

agreement

agents of Moscow on Jan. 27, 1958,
we forfeited the faith and friend¬

people.

90%000,000

ship

Stevenson

nrona<mnda

collected

Khrushchev's Nightmare

dates of both parties.

for

scheme

ou^ ambitious patriotic women of America lie opinion should prevail upon
nhSm1should demand that the new Con- Congress to flatly and permathe world press and esoeciallv gr6SS take iramediately:
nently reject Mr. Dillon's scheme,

wfndows

government has officially notified
the entire
world that we have
abandoned and disowned millions

Actually,

Ion's

Fedegal Government

Soviet cultural exchange

demand

urgent

stage-managed tour of in the billions should be stopped, where it rightfully and legally bedemand a National Referendum so
his slave empire. The tour ocAll
that
the
American
supplementary appropria- iongs. In no other way can we
people
can
curred while 100,000 Soviet citi- tions should be vetoed
decide for themselves whether or
by Con- safeguard ourselves against the
twin dangers of further inflation
zens stormed our
Embassy in Mos- gress.
not they wish to continue spend¬
and dictatorship.
cow to protest the presence of our
ing their country into bankruptcy
armed forces in Lebanon
At the
We can 110 longer afford these
(8) To further safeguard both
in
the
support of
a
giveaway
same time that Adlai was bowing
our liberties and our solvency ii
program that, according to Sena¬
and smiling throughout Red Rustor Harry Byrd of Virginia, now
Qur
Uke the more necessary than ever before
sia,
our
diplomatic
stait
was
approximates $80 billion.
It is
individual and the familv
must
that we stop White House inspired
forced to barricade itself within
dxr ?. a ana tne family, must "brainwashing" of Americans at
imperative
that
the
American our
Embassy while the Kremlin
lve wlthm
prescribed
people be given the opportunity
to
express
their
will
in
this
(3) No new funds should be apPresently, this is being carried
matter.
Obviously
there
never
Khrushchev got full mileage out
will be any Mutual Security for
of
Adlai
by utilizing him for u-i,* 1
*
i n
£
tire historv of our Renuhlir*
Americans.

sional

elections, foreign Aid was
carefully avoidea by the candi¬

the pose. Equally important, Mr. Dil-

Now,

11.

Soviet

Urged

overwhelming
the

weaken our already tottering

Adlai

National Referendum

action.

action

than ever before.

cuse

building of

American exhibit in Sokolniki

this

for

Prominent Americans Promote

J5°" we are
a^.f.s\ 0 many

appointed group.

among

need

Kremlin

against world
communism would be utilized, in
part, to promote "cultural ex¬
change" with the Soviet Union.
country

protests from every section of the "neutralists."
Loans
that
will
country. Our citizens spoke and ..never be repaid, Loans that no
only the Red Sputnik , stopped ; private banker would dare to pro-

glveaway c eck at Congressional

White House.

10.

can

home.

SI
tne

that

here for
gaining presAlso, usually, to
come

sole purpose of

tige

tens

thoi^ands ?f

billions of dollars presently

dollars for himself for his friendlv

mediately be reallocated to

and

essential

foolish

syndicated

"newspaper sermons"
world

wide

Also

na-

magazine
articles * i'lluspictures
taken
by

tional

trated

with

Stevenson's

son, a young college
boy, who received $10,000 for his
pictures and more thousands for

nationally syndicated Sunday
magazine article. Millions of Eua

have

ropeans

American

have

concluded

that

politicians do not

elected

even

minimum

and

msiory oi oui nepuDiic.

the

foreig" aid "Pipeline" should imcover

foreign

The infamous "Cultural Exchange" pact between the United

States

end

the

Soviet

Union

ald requirements for the coming

should be scrapped. It helps the

liscal yeaF* The International Cooperation Administration, dis—
pensers of foreign aid, has grown
from 571 employees to neary 12,-

Soviet Union and hurts the United
States. It has resulted in making
our over-staffed and over-budgeted U. S. Information Agency

600 global paymasters. This giveaway bureaucracy should be drastically reduced.

political

Foreign aid has become both the
symbol

and

the

incentive

for

with its 11,000 taxpayer supported
press agents, a giant
transmission belt for the impor^Uon into the United States of
evei*y form of Made m Moscow

participate
literary gravy bowl that
degrades us both overseas and at

corruption

Propaganda designed to "soften

and red ink throughout every de-

HP„ America, and on a scale never

home.

lishment. By withholding the ap-

the

waste,

extravagance,

partment

Federal

our

More recently, Senator Hubert propriation of any new
money it
Humphrey
obliged
Khrushchev will be possible, for the first time,
with an eight hour long oppor- to
correctly and honestly conduct
tunity to propagandize Godless a world wide audit of both our
Russia

the

world.

Politician

dlleamed

estab-

Mo,re

than

Press ngentry that hurts and de£ases °"r g00d name both at

and abroad.

economic and

military foreign aid
Humphrey's great "secret" was ventures. Moreover, the taxpayers
that
he, like Adlai Stevenson, would gain approximately $5 billaunched his bid for the Presi- ij0n
during the next fiscal year
dency of the United States from when this saving will be sorely
the
office
of
the
man
in
the needed to
preserve our solvency.

df'

$60,000,000 annually can be saved
by drastically reducing this White
House controlled
puppet? for

Our free press, wire services,
motion pictures and publications
must ge kept free from growing
government intrusion, otherwise
our vast resources for telling the

rieTOvn,^h0ofh^^hnar^int}v
<4> A bankrupt America can
of America to all peohnvl aiiJS ShZLw f® M^y never hope to win the cold war at Ples> everywhere will be permacoX6are IfeanornSelt oSE home or abroad. Our solvency is nen"y lostEaton and Eric J^hnsto^
AR of our only hope for the preservation
If this happens our greatest
these "bleedin? liberals'" ^and Sol of our
freedom both here and heritage and safeguard for the
viet appealers maTt may n°o"t throughout the free world.
realize
that
they have become
Today, there is great waste, ^ud ^
t

duplication and extravagance
slave masters, and poor exponents throughout our entire military esfor the America that gave them tablishment.
We cannot survive
liberty, freedom and prominence, unless we obtain a full dollar's
front-line press agents for the Red

this

"get cozy with Khrushdeception
continues,
we

chev"

should close
cow.

Our

Embassy in Mosdiplomatic staff there
our

stabbed them in the back and, at

has been rendered all but useless,

time, aided those whose
is
to
brainwash,

worth for every dollar spent for
defense. This we are not getting today. For example—and this
is only one example, our governour

a.broad will cease to exist. Poli^ia"s aJ]d t?i?pe?vp?a^fia t

*hey have

Li™ SSI

■

the sIave states to-

day*
Presently,

we are following the
suicidal course predicted for us by
Lenin and his successors. There is

Stevenson, Mrs. Roosevelt, Humphrey, Eaton and Eric Johnston

the

same

aim

avowed

bankrupt and destroy us.

why Khrush¬
about the cul¬
tural exchange agreement. Never
That is the reason

chev

happy

Chamberlain

since

took

his

um¬

Hitler have
free people been so disgraced

brella to capitulate to
a

and

that

humiliated. It is to be hoped
the

women

of America,

led

American
Revolution, will demand that this
by the Daughters of the

presently owns and main- no other single course we can foltains fifty-nine unused industrial low that is so positive and complants that produce nothing. These prehensive in its help to Commuwent to the Kremlin without arplants cost more than a billion and nists and their plans to conquer
ranging their meetings 'through one-half dollars. We are paying us. This course leads straight toour Ambassador in Moscow.
Our more than $31,000,000 annually to
wards national bankruptcy; toEmbassy there did not know that keep them idle and unproductive, wards more rapid and ultimate
Stevenson
and
Humphrey were These plants should be sold imme- repudiation of our money; tomeeting with Khrushchev until diately and the proceeds applied wards weakening and thinning
they read about it in Pravda.
to the reduction of the current out the once powerful and proSoon

ident

expect Vice PresSenator Kennedy,

may

Nixon,

ment

cos^ ^or our defense.
(5) Presently there are approx-

ductive American middle group
whose energy, purchasing power

imately 1,500,000 people employed

?dd sacrifices made our country

in our outrageously excessive and
ineffective bureaucracy overseas.
and
terminated
at
once — the
make a "top to bottom" review of agreement, negotiated by the Red making a pilgrimage to Khrush- Savings of billions can be"effected
chev in Moscow. We can expect by promptly and drastically rethe aid program. Unfortunately, appeasement cell within our own
this unless the women of America ducing this vast army of governlike
the
Committees
appointed State Department, which makes
demand patriotism ahead of pol- ment payrollers round the world,
during previous years, this latest free America a partner with the

tlld ei™y of all peoples*everywhere; towards the breakdown of
ddr, constitutional processes and

"study group" offers little chance
for relief for the American tax¬

Its
ten
menibers
are
composed of seven civilians who
hejd. high ranking positions in the
payers.

previous administration and who
have

always

been

front

line

for Mutual Security.
remaining three are retired

apologists
The

military figures whose record for

supporting foreign aid to the hilt
is well known. The

the

American

unfairness, to

people,

this

infamous

Kremlin
first

conquer

agreement be scrapped

and

its

"soften

determination

up"

then

and

America.

Roosevelt

was

condemned

Gov.

Harriman and

Governor

Nelson Rockefeller to seek political promotion for themselves by

itics and put a stop to these

serving
If we

practices.
are

survive

need

for spartan economy throughout

his attempt to pack the Supreme
Court.
Truman was condemned

Federal Government

now.

our
can

longer afford to accept the
for
tolerating
"Red
Herrings." false promises of politicians and I
am being completely non-partisan
But the red herrings of yester¬
when I say this.
year have grown to a sea of Red
Two
years
ago the American
Whales under the present mis¬

occupant

guided

the

White

House.

Every
every

foreign

potentate

President and
visiting Wash¬

&ehiTe HourbfS
the White House submitted
billion

budget.

bombarded

with

(6)

Under

Secretary of State
C. Douglas
Dillon,
is
presently
the
chief
White House spokesman and prometer
for
bigger foreign give-

for Economic Affairs,

Congress
a

$70

was

hurricane

aways

in perpetuity. Mr. Dillon is

worried not at all about
rent

deficit

intends

too

taxpayers

cur-

over-staffed

over-budgeted

and

*a
tod£
Inder he decentive ^nncr nf
"liberalism"
f
1se libmalism
which ad?ocates eivLe
oiS
Sminishln^ resources and del
a

awav

Proving

ourselves from within

Btr°yJng ourselves from within.

billion. He
Only an immediate nation-wide
the Amerigan crusade led, and vigorously main-

bludgeon

the

C°ngre?Sr,a^rSLfUnd0f

approximately $700,000,000 annually to tosS away in loans to untried

and paternalism of the

P°wers

$12

milk

and

our

^X7^i"^?i°rytut

tained,

millions

American

a»<*
.

patriotic

women!•
.

^an restore our integrity, sanity
governments and unreliable and solvency before it is too late.

The Commercial and Financial Chronicle

(1450)

Thursday, March 26.

★ INDICATES

Now

Securities

(par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C.
filed

400,000 shares of common stock

132,000 shares of capital stock

(par S10),
exchange for stock of Anchor Casualty
Co. at the rate of one Agricultural share for each Anchor
common share (par $10) and 11/10 Agricultural shares
each share

of Anchor

preferred stock (par $10).
Street, Watertown, N. Y.
»

Afida

Saskatchewan.

50,000 shares of cumula¬
(par 75 cents). Price—$1 per share.
Proceeds—For general corporate purposes and working
capital. Business — Manufacture, sale and distribution
of novelty items, toys and costume jewelry. Office —
T46 West 28th St., New York, N. Y.
Underwriter —
Darius Inc., New York.

March 5

and

used

Underwriter—Hayden, Stone & Co., New York.
Basic

the

basis

one

for

each

•

AMP

Inc.

•

to
at

March
to

for each five shares purchased. Price—$1.25

Underwriter—To be named by amendment.

Instruments, Inc.'
(letter of notification)

(4/3)
(par $1)

if Black
March

for

inventory

Ferry, N. J.
Alco

Oil

com¬

Office

equipment; for general
—

Industrial

Ave.,

cor¬

& Chemical

Corp.
500,000 shares of

supplied by amendment.

stockholders.

Office

—

Trenton

stock.

Proceeds
Avenue

—

Price—

Associated

selling

Street, Philadelphia, Pa. Underwriter—Chace, Whiteside
& Winslow, lac., Boston,
Mass.; and Ball, Burge &
Kraus, Cleveland, Ohio.
Allied

common

itock

(par $1). Price—$8.50 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. Prooeeds—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
■ale at $1.75 per share. [Shares have been issued or are
issuable under agreements with various
In American Buyers Life Insurance Co.

policy holders
and

American

Life Assurance Co.

(both of Phoenix) permitting them
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
to

stock sales made by them.] Proceeds—For the
opera¬
tion of other brands offices, both in Arizona and in other
■tates. Office—2001 East
Roosevelt,
on

Phoenix, Ariz.

Un¬

derwriter—None.

American Growth

Fund, Inc., Denver, Colo.
Nov. 17 filed 1,000,000 shares of capital stock
(par one
cent).
Price—At market.
Proceeds—For investment
Security

writer—American

Building,

Growth Fund

Denver,

Colo.

Under¬

Sponsors, Inc., 800 Se¬

curity Bldg., Denver 2, Colo
American Investors Syndicate,

Inc.
(letter of notification) 100,000 shares of com¬
(par 10 cents).
Price—50 cents per share.
Proceeds—For operation of an apartment hotel. Office
Feb.

mon

stock

—

513" International

Trade

Mart, New Orleans 12, La.

Underwriter—Assets Investment Co.,
Inc., New Orleans,
Louisiana. American Mutual

Investment Co., Inc.
Dec. 17. 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in
first
trust

notes,

Company

second

trust

notes

and

construction

loans.

develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,
may

will
or

Price

—

$25

for

two weeks/

four
to

current

held;

unsubscribed

creditors

rate

payment of all
share for each $4

one

pay

creditors.

current

Addres

—

delayed.-7/

Edison' Co.

Joy-506.

None. Offer¬

-7
(4."22).

40,000 shares of preferred stock, (par $50).

able bidders: Halsey, Stuart & Go.
Inc:; Stone & Webster
Securities Corp.; Kuhn, Loeb & Co., Salomon Bros. & ;

Wood,

Stritthers &

Co.

(jointly); Kidder,

Brookridge Development Corp.
19 (letter of notification)
$200,000 of 6%

15-year

debentures.
Price—At par ($500 per unit).
Proceeds—For expansion and working capital. -Office—
901
Seneca Avb., Brooklyn 27, N. Y.
Underwriter —

Un¬

Sano & Co., 15 William St., New York, N. Y.
★ Bureau of National

(letter of notification)

ccmmon

stock

Price

—

per

(no

2,000 shares of class

offered' to";employees.
Proceeds — For working capita).

par)

share.

Affairs, Inc.

March 9

Office—12-31-24th Street, N. W., Washington 7, D. C. Un¬
derwriter—None.
;
7
:
.

Butler

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

common

Dec.

Queensland, Australia; and for other corporate purposes.
Office—1301 Avenue L,
Cisco, Tex. Underwriter—None.
Robert Kamon is President.

(par

common

convertible

ranch

—

April 22 at 49 Federal St., Boston, Mass.

improvements; to buy additional

/ Peabody & Co., White, Weld & Co. and Shields & Co.
(jointly). Bids—To be received up to 11 a.fnJTE^T) on

filed

par

cattle;

stock

common

one

Price

discharged; rights to expire about two weeks
mailing of offer. Price—$4. •'
' share,
t ' reeds—

7 Hutzler and

reduce short-term- bank.loans.-/Under¬
writer—To be determined by competitive
bidding. Prob*

Grazing & Pastoral Co., Ltd.
4,000,000 shares of common stock. Price—?
(56V4 cents per share).r Proceeds—To purchase

shares
units

Proceeds—To

Australian
Jan.

debentures.

part of claims, at the

March 6 filed

7'//7/7

Reno, Nev.

each

offered

Brockton

per

derwriter—None.

$400 per unit.
purchase inventory, furniture and equip¬
private club. Office—4800 N. Central

ing-—Has been

common voting stock (par
share.
Proceeds —To purchase
additional contribution certificates of Great Basin Insur¬
ance Co.
Office—704 Virginia Street,

$10).

500

Bridgehampton, h. I.,/N Y. Underwriter

con¬

—

Offering—Expected in

each

of claims

supplied by amendment. Proceeds—To acquire
new bowling centers and increase
working: capital (part
*o
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
Investment Co.:;;:
Feb. 3 filed 50,000 shares of

and

offered

$300

for

after

—To be

Atlas

for

(par $1)

account ' of the company and the common shares will
be Offered for the account of a
selling stockholder. Price

amendment.

new

to be offered for subscription by stock¬
holders of record Nov. 1, 1958 on the basis of one new

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

Publishers, Inc., Portland, Ore.

Nov. 28 (letter of notification) 22,000 shares of

Office—800

stock

Bowling Centers, Inc.

Mov. 24 filed 300,000 shares of 20-cent cumulative
vertible preferred stock (par one

William

and

one

Bridgehampton Road Races Corp.
23 (letter of notification) 15,000 shares of

mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.;
•

(4/2)

Oct.

Proceeds—For

common

basis

about

Avenue, Phoenix, Ariz. Underwriter—None.

Armstrong Uranium Corp.
Jan. 16 (letter of notification) 3,000,000 shares of com¬
mon stock (par one cent).
Price — 10 cents per share.

Little

the

ment to operate a

plant expansion program. Underwriter—
Smith, Barney & Co., New York.

Underwriter—None.

March 5 filed
To

capital

arid

purposes.

and

1969

Proceeds—To

(4/1)
$75,000,000 of 25-year sinking fund de¬

mon

porate

Proceeds—For

100,000 shares of

Sheep Club of Scottsdale, Inc.
(letter of notification) $150,000 of 6% deben¬

due

$100)

bentures due 1984. Price—To be supplied by amendment.

stock (par 10 cents). Price—$1 per share. Proceeds
—For repayment of bank note; purchase of materials

stock

tures

Armco Steel Corp.
filed

Light Co. 7(4/3)-v 732,198 shares of common stock (par $L),
subscription by holders of outstanding

13 filed

stock

April 2, 1959; rights to expire
on or about April 16.- Price—To be
supplied by amend¬
ment. Proceeds—To be used for
property additions and
improvements and to repay some $400,000 of bank loans
obtained primarily lor such purpose. Office—621 Sixth
St., Rapid City, S. Dak. Underwriter—Dillon, Read &
Co. Inc., New York. ;

be offered for subscription by common stockholders
the rate of one new share for each 10 shares held

March

Power

be offered for

11 shares held

Calif.

per share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,

Hills

common
=

on April
2; rights to expire on April 17. Price—To be
supplied by amendment. Proceeds—For working capital.
Underwriters—Blyth & Co., Inc., San Francisco and
New York; and Irving Lundborg & Co., San Francisco,

debentures of the parent at the

Bdise, Ida,

114,400 shares of endorsed common stock
Price—To be supplied by amendment. Pro¬
ceeds^—To selling stockholders.
Underwriters—Kidder,
Peabody & Co., and Blyth & Co., Inc., New York.

Ampex Corp.

200,000 shares of com¬
Proceeds

Price—At par (10 cents per share).

stock.

—For mining expenses. Address—Box 2853,
UndeniTiter-^-Norie.
•
•;
Black

(4/1)

March 12 filed 204,191 shares of common stock

Proceeds—To selling stockholders.

if Ben Hur Gold, Inc.
March 12 (letter of notification)
mon

(par $1).

DeCoursey-Brewis
(payment for the
shares by such debenture holders may
be made by
delivery of debentures at pa* plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased

Underwriter—None.

9 filed

March

Inc.

the-Counter Market.

Price—$30 per share. Proceeds—To reduce shortborrowing and for working capital. Office—
(70
Edgar L. Miller, President, 20725 Shaker Blvd.,
Shaker Heights, Ohio. Underwriters—E. R. Davenport &
Co., Providence, R. I. and Merrill, Turben & Co., Inc.,
Cleveland, Ohio.

of gpmnion
offered cur¬

Atomics

filed

444,246 shares of common stock (par 10
Price—At prevailing market price, in the Over-

cents).

bank

term

of 6% debentures due 1962 issued by
Minerals Ltd., the company's parent

March 19

the balance will be added to working capital
ancp
for general corporate purposes, including approxi¬
mately $100,000 for plant and test equipment, fixtures
and
leasehold improvements in connection with plant
expansion. Office—30 Commerce Rd., Stam#ord, Conn.

holders

1,431,200 shares of common stock (par $1),
1,000,000 shares are to be offered publicly and
431,200 shares are to be reserved for sale to the holders

* Alcar

Se¬

held,

Feb. 25 filed

Alaska.

Underwriter—Cumberland

(letter of notification) ,10,000 shares^of common
stock (par $1) to be offered for subscription by stock¬

of which

one

Canada.

Wells & Rodgers, the holder thereof; and the remaining
25,000 shares for thd account of the Barnes company*
Price—To be supplied by amendment.
Proceeds—$104,->
995 to prepay a 4% note due in December; $100,000 to
pay the remaining tax liability of a former subsidiary;

American Vitrified Products Co.

Alaska Mines & Metals Inc.

rate of

company,

March 3

stock, of which 300,000 shares are to be
rently and the remaining 340,660 shares in the future.
Price—To be supp 1 i ed by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
& Co., Los Angeles, Calif. No public offering expected.

for the 6%

the

Service, Inc.

Industries, Inc.

York.

Service, Inc.
17, 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

March 16 (letter of notification)

for cash

account

American Telemail

tive preferred stock

Alaska Juneau Gold Mining Co.
Dec. 29 filed 640,660 outstanding shares

the

Feb.

Washington

Office—-215

for

245,000

curities, Ltd.

cumulative convertible

$1.75

sold

ISSUE

if Barnes Engineering Co. (4/10) ;>'
March 20 filed 110,000 shares of common stock, of which
85,000 shares are to be offered for public sale by Fox,

shares by the holders thereof.
Price—30
cents per share.
Proceeds—For exploration and devel¬
opment program.
Office — 2100 Scarth Street, Regina,

to be offered in

for

are

and

^Agricultural Insurance Co.
March 23 filed

Petroleum & Natural Gas Corp. Ltd.
filed 745,000 shares of stock, of which 500,000

★ Ami can
23

REVISED

ing of new sites
Office—2210 Walnut Street, Philadel¬
phia. Pa. Underwriter—May be Bear, Steams & Co.,
New

March

ITEMS

•

dent.

ADDITIONS

SINCE

Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

Advanced Research Associates, Inc.
Dec.

Registration

1959

Brothers, Chicago,

III.

Feb.

which,

•/

A.M.I.

property and assets, and the re¬
maining 166,354 shares are to be issued upon the exercise
of stock options. Underwriter—None.
V

17 filed 30,000 shares of common stock
being offered to certain Ben Franklin Franchise Holders. Com¬
pany- provides services and merchandise to Ben Franklin

Stores.

The

offer

S36.58 per share.

writers—None.

expires

April

1959.

Price—

Proceeds—For working capital. Under¬
Statement effective March 5.
,

Bankers

Fidelity Life Insurance Co.
'
>«
28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
■

California Electric Power Co.
(3/31) \
27 filed 300,000 shares of common stock

Feb.

Proceeds

and

133,740 shares to employees pursuant to stock pur¬
chase options. Price—To
puWic, $6 per share. Proceeds—
For expansion and other
corporate purposes. Office—Atanta G*
Underwriter—None
,

Bankers Preferred Life Insurance Co.
Jan. 30 (letter of

Underwriter—Ringsby -Underwriters,
Col°•

Inc.,
.

Denver

(jointly); White, Weld & Co.;.and Kidder,

March

Bids—To be received up to 9 a.m. (PST)
office of O'Melveny & Myers,. 433 So.

•

California Financial Corp.
27 filed 100,000 shares of capital stock
Price—About $14 per share. Proceeds—To
Feb.

holders.
r

filed

5,000,000 shares of class A common stock
(no par), later reduced to 500,000 shares. Price^-$9
per
share. Proceeds—For
expansion and acquisition or leas-

To be

Spring St., Los Angeles 13, Calif.

Bargain City, U. S. A., Inc.

Dec.

Stearns & Co.

common

per share.
Proceeds—For
incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.

—

by competitive bidding. Probable bidders:
Lynch, Pierce, Fenner & Smith Inc.; The First
Boston Corp., Carl M.
Loeb, Rhoades & Co. and Bear,

(par $1.60). Price—$3

(par $1).

Merrill

expenses
pany.

To reduce bank loans. Underwriter

Peabody & Co.

notiifcation) 100,000 shares of

stock

—

determined

(par $1).
selling stock¬

Office—San Jose, Calif.

Underwriter—William

R. Staats & Co., Los Angeles, Calif.
ing made.
-

Carlon

Products

Offering—Now be¬
;

Corp., Aurora, Ohio -44/1-3)

March 12 filed 100,000 shares of common stock
(no par).

^Volume 189

Price—To

Number 5832

supplied

„

The Commercial and Financial Chronicle

Proceeds—For

amendment.

additional working capital and other corporate purposes.
Business—Manufacturer of plastic pipe and pipe fittings.

Underwriter—Shearson, Hammill & Co., New York.

Electronics, Inc.;
(letter of notification) 80.000 shares of commor. stock
(pafc 10 cents). Price—$3 per share. Proceeds
—For general funds of the company*' Office—3414 West
Lake Road, Erie, Pa.
Underwriter—None...
March

★

C-E-l-R,

(3/30-4/3)

Inc.

Feb. 27 (letter of notification) 34,750 shares of class A

bank

loans.

common stock
(par $1), of which 8,000 shares will be
j reserved for employees.
Price—$6.50 per., share.
Pro¬

522 shares of

Office—734 Fifteenth St.,
Underwriter—Alex. Brown &

Sons, Baltimore, Md„

Price—$1

(par 25 cents).
?For working capital.

per

common

Proceeds—

share.

Address—P. O. Box 1849, 3720 E
Street, Yuma. Ariz. Underwriter—L. A. Huey Co..
,■

...

Electric

Louisiana

Co.,

(4/20)

Inc.

85,000,000 of first mortgage bonds, series
I, due 1989. Proceeds—To repay $1,000,000 of bank loans
and to finance construction program.; Underwriter-—1To
be determined by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler,
Merrill Lynch. Pierce, Fenner & Smith, Inc., and Stroud
& Co. (jointly.^; Kidder, Peabody & Co.; White, Weld
& Co. Bids—Expected to be received on April 20.
Central Power & Light Co. (4/14)
March 16 filed 811,000,000 of first mortgage

March 26

bonds, series

March

Industrial Development Corp.
filed 37,500 shares of common stock. Price—

$20 per share.

Proceeds—For purchase and development
properties and for working capital. Office
—Chattanooga, Tenn. Underwriter—None.

of industrial

Chesapeake Life Insurance Co. (3/30-4/2)
26 (letter of notification) 8,500 shares of class B
non-voting capital stock (par $10). Price—$35 per share.
Proceeds—To increase capital and surplus.
Office—611
Feb.

St. Paul
&

St., Baltimore 2, Md. Underwriter—White, Weld
Co., Baltimore, Md., and New York, N. Y.

City Lands, Inc., New York
13 filed 100,000 shares of capital stock. Price—$20
per share.
Proceeds—To invest in real estate. Office—

Jan.

Room

ISSUE

March

;

(Friday)
Merrill, Turben
,
:■
?1

(Offering'ta stockholders—underwritten, by
.\ & co.*.3nc.> $2,313,500

March

and

(Offering

Common

(Offering to stockholders—underwritten
& Co., Inc.)
$217,334

Ford

Motor Co

(Blyth
&

Finance

Dalton

The-First Boston Corp.; Goldman, Sachs
Loeb. &■ Co.; Lehman Brothers; Merrill Lynch,
Inc.; and White, Weld & Co.)

Seal

(Van

Fuller

Hoffman Motors

McQuay,

Corp.—
Noel. & Co.)

Alstyne,

Inc.

$25,000,000

EST)

a.m.

(Allen

;

Brothers.

Co.r Lehman

Hutton &
;.

Bear

Stearns

and SaJwnon Bros. & Hutzler)

Co.

Petroleum
(Bache

Co.,

$5,600,000

Gas

Tennessee
(Stone &

(Bids

Grant

(W. T.)

(Dillon,

(Bids

a.m.

—Bonds
EST)

Blyth & Co., Inc.)

Cd,)' $75,000,000

Graham-Paige

Corp.

Co.)

Barnes

Johnston,

and

550,000

(Bids

,•

(Kidder,

"V*

•

Patterson

Peabody

Co.):

166,716

Ritter

(May

Hornblower

Alabama

(Stroud

Co.,

Inc.)

Witter & Co.)

$10,000,000

Paso

•Bids

(Bids

Idaho

Common
El

Eurofund,- Inc.
-

•
.

Paso

Electric

Paso

Electric

(Monday)
Inc.)

Gulf

Power
-

Norfolk
.

....

,.j j

$50,000,000

a.m.

Co.,

Inc.)

150,000

"•

EST)

(Tuesday)

April 14

Louisiana

Power

a.m.

April
(J. J.)

EST)

Bonds ^

Co
a.m.

EDT)

$3,500,000

a.m.

EDT)

$2,000,000

>■

Preferred

Co
11

(Thursday)

May 25

Invited)

(Bids

(Bids 11

Bonds
EST)

noon

(Bids

11:30

a.m.

April 20
(Bids

General

(Bids

(Tuesday)

;

(Thursday)

•

(Tuesday)
Debentures

(Bids to be Invited) $30,000,000 to $40,000,000

Common

(Bids to be received) $20,000,000 to $25,000,000

June 25

.Bonds

Bonds

invited) $25,000,000

Virginia Electric & Power Co

Bonds
.

June

•

$14,000,000

Bonds

$50,000,000 to $60,000,000

EDT)

Public Service Electric & Gas Co

(Monday)

invited)

$14,000,000

Southern Electric Generating Co

Common

EST)

a.m.

May 28
Preferred

Wisconsin Power & Light Co

„

•»

Consolidated Edison Co. of New York, Inc.

(Wednesday)

(Monday)

West Penn Power Co

Common

$7,500,000

& Ives Co

821,256 eh&res

$10,120,000

Bonds

Light Co

.Common

(Offering to stockholders—no underwriting)

$11,000,000

Central Louisiana Electric Co., Inc

$7,000,000

(Tuesday)

May 21

Societe Anonyme, of France

(Bids

Kraus)

E^uip. Trust Ctfs.
(Bids noon EST) $7,350,000 U j . ■

& Western

Central Power & Light Co

Bonds

Co
(Bids

$16,000,000

$15,000,000

EDT)

a.m.

May 26

Common

—

EDT)

(Wednesday)

Consolidated Natural Gas Co

$1,250,000

(Glore, Forgan & Co.)

Bonds

Bonds "
11

(Bids

(Shields & Co.) $875,000

..Common

a.m.

May 19

Common

tThursday)

500,000

11:30

(Bids

Preferred

Co.,

(Bids to be

(Chace, Whiteside & Winslow, Inc. and Ball, Burge &

Bonds
$5,500,000

Power

$300,000

Corp.

$7,620,000

Alco Oil & Chemical Corp

76,494 shares

PST)

a.m.

May 13

110,000 shares

Co )

Southwestern Electric Power Co

Common

Corp.)

Southern Nevada Power Co

Preferred

(Blair

Little

April 2

Electric

(Friday)

1®

.(Blair &

Co
.Common
(Offering to stockholders—underwritten by Stone & Webster
;

(Thursday)

April 13

Equip. Trust Ctfs.

(Bids noon EST)

Allyn & Co., Inc.)

(Tuesday)

May 12
Bonds

Corp.

25,000 shares

Southern Pacific Co

Debentures

Gas

(Snow, Sweeney & Co.,, Inc. and A. C.

320,000 shares

(Offering to stockholders—not being underwritten)

Common
Inc.)

Co.,

(Friday)

May 1
Arkansas Western

$20,000,000

to be Invited)

(Bids

$1,500,000

Co;_
&

Bonds

Power
(Bids

stockholders—underwritten by Snow, Sweeney &
Co./ Inc. and A. C. Allyn & Co.) $11,068,275

Common

(Stroud

(Thursday)

April 30

Preferred

and

$1,500,000

Co.)

(Offering to

SIMCA

n—Preferred

Finance

Preferred

William R. Staats & Co.

Weeks;

California

First

$2,475,000

Southern Union Gas Co

200,000 shares

Finance

Ritter

(Stone- & Webster Securities Corp.),

Bonds

$20,000,000

EDT)

a.m.

116,541 shares

Erdman, Smock, Hosley & Read, Inc

Dorsey

(M. F.)_ Dental Supply Co. of

Delaware;

Southern Nevada Power Co

Equip. Tr. Ctfs.

(Hayden, Stone & Co.)

.....Common

Pipe Co.——-.—

(Tuesday)

Public Service Co. of Colorado
1

•

Lock Joint

Lemon

April 28

213,000 shares

Engineering Co

Dorsey

'-'V ;

(White, Weld & Co.) 75,000 shares

.Preferred
by The First Boston
& Co.) $10,000,000

to stockholders—underwritten

Corp.

...Common

and Dean

Inc.

Co.,

Preferred
.•-*•■

iMning & Smelting Co., Ltd.__Common

Hudson Bay

(Offering

(Monday)

Washington Gas Light Co

1,799,067 shares

$3,500,000

Common

April 27

Natural Gas Pipeline Co. of America
Bonds
(Dillon, Read & Co., Inc. and Halsey, Stuart & Co., Inc.)

Common

—

(Bache

(Friday)

(Merrill Lynch, Pierce, Fenner & Smith and A. G. Becker-& Co.)
50,000 shares
-

Co., Ltd

(Simmons

Carlon Products Corp
_____
Common
(Shearson, Hammill & C».< 100,000 shares

Columbia- Gas System, Inc
(Offering to stockholders—bids 11 a.m. EST)

$2,000,000

Comomn

April 9

114,400 shares

Debentures
Barney

Preferred
EST)

a.m.

April 24

(Wednesday)

April

Armco Steel Corp
(Smith,

Maine Public Service Co

$20,000,000

Common
and

Peabody & Co.

Common

Edison

Corp. and White, Weld & Co.)

Brothers)

$16,000,000

AMP, Inc.
(Kidder,

Read

(Wednesday)

April 1

Common ;

Securities

Monongahela Power Co

Debentures

$5,000,000

Co.

April 22 (Wednesday)

(Lehman

Common

(Tuesday)

Telephone Co

State

Boston

(Tuesday)

Transmission

Electric

Hawaiian

(Tuesday)
300,000

page

Common

Co.)

Invited)

$1,000,000

4,000 units

PST)

a.m.

April 8

Thorncliffe Park Ltd....—Debentures & Common

California Electric Power Co

Continued

Greater All American Markets, Inc
(J. Barth & Co.) 300,000 shares

$44,000,000

$8,000,000

(White, Weld & Co. and Dittmar & Co.) 200,000 shares

Common

Allen

and

Webster Securities

(Offering to stockholders—underwritten by Allen & Co.

March

46,200

Co.)

Pittsburgh & Lake Erie RR

&r Co.)

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 t«f common stock to be
offered in units as follows: $l,00o of bonds and 48 shares
of stock and $100 of debentures
nine shares of stock.
Price—To be supplied by amendment. Proceeds — To

Common

Mergenthaler Linotype Co

Scranton-Spring BeooL Water Service Co.__Debens.

(Bache

Commerce Oil Refining Corp.
Dec.

Co.

$1,877,700

Corp

Co.

(Bids

Preferred

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

$33,577,000

(Offering to stockholders—no underwriting)

Public Service Co. of New Mexico

.Common
&

April 7

Common
50,000 shares

..Bonds

(Bids

Co.)
;

Co.)

Brothers

Price—To be

Proceeds—To finance System con¬

struction expenditures.

Frito

Common

Union Securities &

share for each 15 shares held

one new

March 31.

$500,000

(Dempsey-Tegeler & Co. and Morgan & Co.)

$2,500,000

Co.I

Power

Co.)

Inc.
(Stern

Common

.....

the basis of

(Bids

Corp.

Harzfeld's

Texfel

$1,250,000

Co.)

(Loewi & Co.)

Ohio

Preferred

Products Corp;_
(S.

Kimball

(Bache

(4/1)

April 1, 1959; rights to expire on April 20.
named

Debentures

Pacific Hawaiian Products Co

2,000.000

Gold

Glickman

Common

Fanner & Smith,

Pierce,

System, Inc.

(Bids to be Invited)

Common

Inc...

(Eastman Dillon,

,.*/

(Monday)

Fed-Mart Corp.

Lyon

Inc.;

Co,,

Kuhn,

Co.;.

•

———

Gas

March 5 filed 1,799,057 shares of common stock (par $10)
to be offered for subscription by common stockholders

Brockton

(Paul C.

by Ross,

working capital. Office—Suite 421, 901
Street, Denver, Colo. Underwriter—Associated
Street, Cedar Falls, Iowa.

Proceeds—For

Securities 412 Main

Diamond

Inc.,

Common
Read

Companies.-

April

(White, Weld & Co.) $297,500

..Common

204,191

stockholders—underwritten by The First
and White, Weld & Co.) 177,626 shares

Corp.

Corp

Co.)

& Co.,
shares

Light Co

Massachusetts

.Common

Chesapeake Life Insurance Co
Chemical

Lundborg

Blyth

stockholders—underwritten by Dillon,
Inc.) 32,198 shares

$173,875

Brown*&■ Sons)

tures

Sherman

April 21
Common

Irving

(Offering

(Monday)

notification) $220,000 of 6% unsecured
shares of common

(par $1) to be offered in units of $200 of deben¬
and one share of stock.
Price — $205 per unit.

stock

(Friday)

stockholders—underwritten

Western

C-E-I-R, Inc., "Washington, D. C
(Alex.

(Offering

Black Hills Power &

..Debentures

Gray Drug Stores. Inc.—

(letter

debentures due April 1, 1964 and 1,100

CALENDAR

April 3

$3,000,000

Colorado Water & Power Co.
Feb. 25

3748, 120 Broadway, New York, N. Y. Underwriter

Ampex Corp.

Equip. Trust Ctfs.

(Bids -nooS CST)

1;.,;

stock to be issued to stockholders

Chattanooga

(Thursday)

Texas & Pacific Ry.____

Cormac

deben¬

(convertible until Dec. 31, 1968) and 61,-

common

NEW

subordinated

•

March 20 filed

5%%

Coppermines Corp., which is to be dis¬
solved and liquidated. Underwriter—None.

~V v

Cemex of Arizona, Inc.

"-stock

of Consolidated

j-Nov. 17 (letter of notification) 300,000 shares of

★ Central

—Model, Roland & Stone, New York. Offering—Post¬
poned indefinitely.

Columbia
Cerro de Pasco Corp.
4 filed $8,040,200 of

March

tures due 1979

Denver, Colo*

determined

Co.

| N. W,, Washington, D. C.

—

hidding. Probable bidders; Halsey, Stuart
Inc.; Blyth & Co., Inc.; Lehman Brothers and
Glore Forgan & Co. (jointly); Kidder, Peabody &
Co.;
Merrill Lynch, Pierce, Fenner & Smith and Salomon
Bros. & Hutzler (jointly); Kuhn, Loeb & Co., A. C.
Allyn & Co., Inc., and Bear, Stearns & Co. (jointly);
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received up to 11 a.m. (EST) on April 14.
&

ceeds—For working capital.

32nd

Underwriter

competitive

★ Cedco
<

I, due April 1, 1989. Proceeds—To finance part of com¬
pany's construction costs and to prepay and discharge
all

(1451)

(Thursday) "

Bends

Mississippi Power Co
•

Bids

Invited)

$5,000,000

Telephone & Electronics Corp.__Common

(Paine, Webber, Jackson & Curtis and Stone & Webster
Securities Corp.) 800,000 shares
j • •

September 10
Georgia Power Co
•

(Thursday)

(Bids to be invited) $18,000,000

Bonds

The Commercial and Financial

(1452)

Continued

Price—$20 per share.

from page 47

Underwriter—Lehman Brothers, Nc

construct refinery.

Offering—Indefinite.

York.

Lake City, Utah. Underwriter—Earl
Bait Lake City. Utah.
Jan.

108.667

22 filea

J. Knudson & Co.

108,667 common stock purchase
warrants, each unit consisting of one common share and
one warrant,
to be offered for subscription by holders
of the common stock of Cormac Photocopy Corp. at the
rate of one such unit
for every six shares of Cormac
Photography common held. Price—$2 per unit.
Pro¬
ceeds—To finance the company's development and marketing program. Office—80 Fifth Avenue, New Vork
N. Y. Underwriter—Ross, Lyon & Co. Inc., New York

kt Dairy Management, Inc.
JVJarch 16 (letter of notification) 5,950 shares of voting
common stock
(par $10) and 5,950 shares of preferred
stock (par $40). Price—Both issues at par. Proceeds—
To purchase land and for construction and working capi¬
tal. Office—3853 Peach Street, Erie, Pa. Underwriter—
"

Dalton

Inc. (4/6-10)
$500,000 of 7% subordinated debentures,
due Jan. 2, 1974, with attached warrants for the pur¬
chase of 100,000 shares of class A common stock. Price
Finance,

March 9 filed

—At face amount

derwriter—Paul

Kimball

V;v

111.,

best efforts basis.

(Del.),

Washington, D. C.
Mar. 23 filed 350.000 outstanding shares of class A com¬
mon stock. Trans Caribbean Airways, Inc., which owns

West 32nd St., New

York, N. Y.

Federated Corp. ot Delaware
/>ec. 29 filed $918,000 of 6% convertible

Underwriter—None.

Federated

Nfov.

Finance

Co.

(letter of notification) $300,000 of 10-year 6%
debentures. Price—At par (in delominations of $1,000 each). Proceeds — For working
.•apital, to make loans, etc. Office—2104 "O" St., Lin:oln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha. Neb.
Fed-Mart

(4/6-10)

Corp.

March 16 filed 170,700 shares of common stock.

Trans

stock

Caribbean

stockholders
version

their

basis of

which

the

three

they

debentures

are

(with

either

entitled
an

stock

hold

upon

con¬

oversubscription

privilege).

Employees of Trans Caribbean and its sub¬
have the right to purchase up to 100,000
of the said 350,000 shares.
Price—To be supplied by
■amendment.
Proceeds—To selling stockholder. Under¬

sidiaries

will

writer—None.

share.

per

Proceeds—For

common

stock.

Price—

new

equipment, repayment of
loan, acquisition of properties under option, and othei
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.
Diversified Inc., Amarillo, Texas
Jan. 6 filed 300,000 shares of common stock
(par 50
cents). Price—$3 per share. Proceeds—For acquisition
of

undeveloped real estate, for organization

tion

Diego,

Calif.

curities

Underwriter—Eastman Dillon,

Union

Se¬

acquisi¬

Oec.

vertible subordinated notes, due
At face amount. Proceeds—For

Corp.

April 1. 1969.

common

$1).

(par

Price—To

supplied

amendment.

Proceeds—Together with $1,000,000 of in¬
stitutional borrowings and other
company funds, will
be applied for purchase
by its subsidiary of the assets
of Dorsey
Trailers, Inc. and to the retirement of the
latter company's nctes and installment
contracts, in the
approximate amounts cf $4,000,000 and $670,392, re¬
spectively. Office—100 West 10th St.,
Wilmington, Del.
Underwriter—Blair & Co.. Inc., New York.

it Dynacolor Corp., Rochester, N. Y.
>
March 24 filed $1,600,000 of
7% sinking fund debentures
due

1969

and

company

and

155.000

proposes

shares
offer

the

stock.

common

debentures

and

The

80,000

consisting of $100 of debentures
Remaining 75,000 outstanding

five common shares.

common

are

offered
for
sale by
the
Price—To be supplied
by amendment.
pay bank loans and for
construction,
equipment and development. Underwriter—Lee
Higginson
Corp., New York.

First Virginia Corp.
12 filed 1,154,730 shares

Feb.

ol' Old
on

Dominion

(letter of notification) 140,000 shares of com¬
(par five cents). Price—35 cents
per share.
Proceeds—For development of oil
stock

orooerties.

Street,

New

None.

York, N. Y.'

Office—

Underwriter

—

Erdman, Smock, Hosiey & Read, Inc.
(4/10)
Feb. 26 (letter of
notification) 100,000 shares of class A
common stock and
10,000 stock purchase
warrants, to be
offered in
Puce

units of 10 shares of stock
and one warrant.
per unit.
Proceeds
For general
corporate
Office
1008 Sixth St., N.
W.,

$30

purposes.
D. C.

stock

stock.

common

This offer

will expire

Underwriter—Simmons

—

Washington,

Co.. New York.

•

Eurofund, Inc. (4/2)
Feb. 26 filed 2,500,000 shares
of common stock

(110

(par $1).

Antonio,

Price—$10

pai).

25,000 shares of comi
share.

per

working capital. Address—P. O.
Underwriter—None.

Box

Proceeds—

4, Boston 23,

General Aniline & Film
Corp., New York

ures

and

init.

share of

one

common

stock.

Price

$110 pei
Proceeds—For purchase and development of sub-

General Builders Corp.,
due

New York
subordinated

debentures,

April

30, 1963, with detachable warrants to pur¬
213,100 shares of common stock (each $100 de¬

benture

will be accompanied
by a warrant
purchase for cash of 10 common shares at $3

for

beginning

April 30, 1969).
of

its

Oct.

30,

1959

and

the

per

time

any

including

The company proposes to offer holders

outstanding

stock

common

its

and

outstanding

cumulative preferred stock of record March
20, 1959, the
right to subscribe to a total of $1,631,000 of the deben¬
with

The

warrants

remaining $500,000 of deben¬
be sold to a group of
pur¬

are

chasers

stockholders

who

(who are also
have agreed also

amounts

rights

debentures

are not

with

the

company)

certain

purchase

additional

warrants

subscription

exercised in at least the amount of

Price—$100

$500,-

sition of land and

projects

the

Feb.

(par

Merchandising Corp., Memphis, Tenn.

filed

250,000

writer

St., South.

—

Union

★ General

Securities

Telephone

mining expenses.
S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties. Inc., 4314 N. E. 96th Ave.,
Portland, Ore.

about

March

common

24.

1959,

stockholders

the

basis

record

$100

principal

amount

oi( debentures for each 25 shares of common
held; rights to expire on April 10, 1959. Price—
At par (flat).
Proceeds — For general corporate pur¬
stock

poses,

including additional working capital and future

capital
Union

expenditures.

Underwriter

—

Eastman

Securities & Co., New York.

Ford

Motor

Co.,

"A"

stock

common

Investment

Co.,

Memphis,

572,301

(b)
(c)

Electronics

Corp.
stock,

common

being

General's Restricted Stock Op¬
granted under that

(a)

options

heretofore

and
options
Executive Stock Option
Plan

Stock

Incentive

Plan

were

assumed

by General

into

General

Sylvania

verted

Option

Inc., which
of

heretofore granted under the
Plan and the Employees' Stock
Sylvania Electric Products, Inc. and

into options to

Argus
upon

Cameras,

the merger

March

5, 1959, and
purchase shares of General

con¬
com¬

mon.

it Gillette Co.

Inc.

Feb. 27 filed $21,203,200 of
20-year 4% convertible subor¬
dinated debentures due 1979
being offered initially for

subscription

filed

Plan,

the

300,000 shares
per share). Pro¬

(SI
Office—4334

Fair Stores,

tion

Purchase

Fluorspar Corp. of America
Feb. 5 (letter of notification—as
amended)
of common stock.
Price—At

Food

class

Tenn.

Plan,

•

Price—$10 per share, Proceeds—For
working capital and general corporate purposes. Under¬

March

par

cent).

one

stock issuable under

Office—700 43rd
Underwriter—None.

may undertake.
Office—2413
N. Y. Underwriter—None.

Third Ave., New York,

land, including shopping site; for new equipproject site facilities; for financing exjansion program; and for liquidation of bank loans and
purposes.

working capital for such building

company

nent

corporate

Proceeds—To repay promis¬

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¬

livision

Petersburg, Fla.

unit.

per

—

and

Dillon,

Dearborn, Mich.

(3/30-4/3)

March

offered

filed

80,000

stock,

common

to the company's Employees'
Savings
eligible employees of Gillette and other affili¬
ated companies.
Plan

•

pursuant

Glickman

Corp.

(4 6-10)

March 13 filed 3,357,700 shares of

common stock.
Price
per share.
Proceeds
For properties, furniture,
fixture and leasehold
improvements and other expenses.
Office—565 Fifth Ave., New

—$10

—

York, N. Y.

Underwriter

—Bache & Co., New
York, N. Y.

★ Godfrey Co., Milwaukee, Wis.

March 12 filed 2,000,000 shares of common
stock (par $5).
Price—To be related to current
market quotations on
the New York Stock
Exchange. Proceeds—To the Ford

March 23 filed

Foundation,

kets

the selling
Co.. Inc., The

stockholder.
First

Underwriters

—

Boston

Corp., Goldman.
Co., Lehman Brothers.
Merril Lynch. Pierce. Fenner &
Smith, Inc.. and White.
Weld &

Co.,

Kuhn,

Loeb

Co.. all of New York.

Investment Corp., Atlanta, Ga.
/an. 13 filed 231,988 shares of
common stock to be of¬
fered for subscription
by stockholders; unsold portion
o

be offered

publicly. Price—$12.50

-To repay notes.
Office—515
Da. Underwriter—None.

per

share.

Candler

Proceeds

Bldg., Atlanta,

it Franklin Discount Co.
March 16 (letter of
notification) $100,000 of double year
money capital notes due 8
years, 8 months, and eight
days from date of issue. Price—At face amount. Pro¬
ceeds—For

Toccoa,

working capital. Office—105 North Sage St.,
Ga. Underwriter—None.

• Franklin Investment
Programs, New York
March 20 filed
$5,000,000 of Programs for the accumu¬
lation of shares of Franklin
Custodian Funds, Inc.

<■-

14, 1957 filed 426,988 share* uf common A siocx
Dar) and 1,537,500 shares of common B stock
(pai
$l)t
®roceeds—To the Attorney General of the United
States.
Jnderwriter—To be determined by
competitive bidding.
Tobable bidders: Blyth & Co.
inc., and The First 3o»on
Corp.' (jointly),
Kuhn,
Loeb
&
Co.;
Lehman
brothers, and Glore, Forgan & Co (jointly). Bids
Had
}een scheduled to be received
up to 3:45 p.m. (EDT) on
flay 13 at Room 654, 101 Indiana Ave., N. W.,
Washingon 25, D. C., but
bidding has been postponed.
>an.

General

Foundation

March 17

55th

common

Builders, Inc.
3ec. 1 filed $4,000,000 of 6%
15-year sinking fund sub>rdinated debentures and 40,000 shares of common stock.
0 be offered in units of
$100 principal amount of deben-

it Empire Oil Corp.

account

April 6. unless extended.

of class B

Florida

Sachs

(par

for

Mass.

tures

(par $1), being offered in exchange for 38,491 shares of
stock of Old Dominion Bank at the rate of 30
shares of First Virginia class B stock for each one share

Blyth

245

For

•

Proceeds

mon

stock

tures with warrants.

Industry, Inc.

filed

holders thereof.
—

the

sory

shares ir, units,

common

investment.

ceeds—For

(4/13-17)

stock

it Garvey Foods, Inc.
19 (letter of
notification)

mon

000.

Price—

Chicago, ill. Underwriter—None.

for

March

>ther

March 20 filed 25,000 shares of 6%
cumulative preferred >
stock, series A, $50 par (with warrants attached for the
purchase of 50,000 common shares) and 150,000 shares
of

Boston, Mass.
(by amendment) an additional 3,000,000
capital stock (par $1).
Price—At market.

—

con¬

working capital. Office

stock

common

are

company's
Price—To be supplied by amendment.
Proceeds
—For general corporate
purposes.
Underwriters—White,

Vlich.

3t.

March 18

it Dorsey

Inc.,

200,000 shares of class A common stock
Price—At par ($1.50 per share). Proceeds—For
working
capital. Office—508 Ainsley Bldg., Miami, Fla. Under¬
writer
R. F. Campeau Co., Penobscot
Bldg., Detroit.

it Dominion Acceptance Corp.
(letter of notifictaion) $100,000 of 6V2%

consumer

for

—4526 N. Sheridan Rd..

Fund,

account

Co., New York.

Finance For

finance business, and balance to be
working capital. Underwriter — Investment
Service Co., Denver. Colo,, on a best efforts basis.
used

chase

common

Derson Mines Ltd.

June 5 filed 350,000 shares of

■

200,000

Feb. 26 filed $2,131,000 of 6%

share of class

class

holders

such

which

one

the

(4/21)

filed

$2.50), of which 140,000 shares
selling stockholders and 60,000

Price—

share.

per

warrants, which evidence the right to purchase shares
each

Depositary—Guaranty Trust

York.,

Proceeds—For acquisition of land, build¬
ings and fixtures for two new stores; for expansion of

$11

Proceeds—For

depositary receipts for 50,000

Weld & Co., New York; and Dittmar &
Co., San

Iebentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
if Federated. Off ice—1 South Main Street, Port Chester,

standing class A stock, and holders of its outstanding
51/2.% convertible subordinated debentures, transferable

for

American

Texas.

iebentures due 1968.
The company proposes to offei
#210,000 of the debentures to purchase the capital stock
if Consumers Time Credit, Inc., a New York company
5442,000 of the debentures in exchange for Consumer#

•k Fidelity

stock

filed

subordinaieo

March 20 filed

★ Frito Co.-

all of this stock, proposes to give the holders of its out¬

of the class

March

ner,

depositary receipts for 50,000
ordinary registered shares. Depositary—Chemical Corn
Exchange Bank, New York.
;
V

it Fairfax Building, Kansas City, Mo.

Building in Kansas City, Mo. Underwriter—None. Trus¬
tees—Michael R. Riordan, Ira Sands and Jerome Wish-

(Union of

American

operations of Reid Oil Co., a subsidiary: to reduce debt:
and for working capital.
Office—8001 Athello St., San

Co., Chicago,

•it D. C. Transit System, Inc.

filed

Co. of New

Thursday, March 26, 1959

Mines, Ltd.

ordinary registered shares.

Proceeds—To

(in units of .$500 each).

finance making of additional loans and to reduce shortterm debt. Office—3800-34th St., Mt. Rainier, Md. Un¬

Geduid

Africa)

March

lenior subordinated

South

March 24 filed $500,000 of Co-Ownership Participations.
Price—$5,000 per unit.
Proceeds—To acquire Fairfax

108,667 shares of common

it Free State

Cincinnati, Ohio.

stock (par one cent) and

None.

Office

Underwriter—Glore, Forgan

stock

(3/30-4/3)

Corp.
units

Proceeds—For investment.

York.

Grocery Co., Gallipolis, Ohio
(letter of notification) 30,027 shares of common
(par $3.33*4). Price—$8 per share. Proceeds—To
selling stockholders. Underwriter—Westheimer & Co.,

Cormac Chemical

New

Co., New York.

Feb.

(letter of notification) 900,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For investment. Office—450 So. Main St., Salt

•

St.,

Evans

Commercial Investors Corp.

Nov

Wall

—14

Chronicle

100,000 shares of

supplied

common

amendment.

stock. Price—

Proceeds—To

provide

inventory and working capital for four new supermar¬
in the amount of some
$309,400, and to provide

fixtures

and

equipment

with

respect

thereto

the

amount of

$635,000; some $30,000 will be used to provide
equipment and Improvements for Crestwood
Bakery, a

subsidiary; and the balance will be used for investments
in controlling stock in
retailer-franchised Sentry Mar¬
kets

and

ments

interim

prior to

investments

resale.

sites

and

•

Gold Seal

March

Products Corp.

filed

125,000

develop¬

Office—4160£North Port

ington Rd., Milwaukee, Wis. Underwriter
Rogers & Tracy, Inc., Chicago, 111.

—

Wash¬

Taylor,

(4/6-10)
of

6^2%

cumulative

con¬

vertible preferred stock
(par $10). Price—To be supplied

by amendment.
balance due

Proceeds—To
a

applied

towards

the

mortgage held by A. J. Armstrong Co.,

Inc.; to the prepayment of certain indebtedness secured
by accounts receivable: in prepayment of two
promissory
notes; and the balance for working capital. Underwriter
—S. D. Fuller 8c

Co., New York.

Volume 189

Number 5832

Government Employees
Insurance Co.

The Commercial and Financial Chronicle

Variable Annuity Life

Heliogen Products, Inc.

to be

stock (par $1)
offered by company viz: (1) to holders of common
(par $4) of Government Employees Insurance Co.,

the basis of one warrant per

share of stock held (1,«
334,570 shares are now outstanding); (2) to holders of
common stock
(par $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
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of V2 warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were
Converted into common stock prior to the record date,
a total of
164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.
on

•

Graham-Paige Corp.

March

(4/1)

filed

350,000 shares of 6% cumulative pre¬
(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

Underwriter—Bache & Co., New York.

• Grant

(4/8)
March 19 filed 320,000 shares of common
Price—To be supplied by amendment.
additional working capital requirements,
resulting from further store expansion.
Lehman Brothers, New York.
(W.

T.)

Broadway, New York 4, N. Y.

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¬
stock. Price—At par ($1 per share). Proceeds—To
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.
v"."'
mon

pay

•

High

March

Point

Chemical

Co.,

Underwriter—

Inc.

and the balance of note issued by the company as part
of the consideration for the assets of The King Drug Co.;
for capital

expenditures; and the balance for working
capital. Underwriter — Merrill, Turben & Co., Inc.,
Cleveland, Ohio.
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—

nylon conversion

proc¬

to establish factory and offices and for working
capital.
Office — 44 Shore Drive, Great Neck, N. Y.
ess;

Offering—Reported oversubscribed.

Highway Trailer Industries, Inc.
24 filed 473,000 outstanding shares

common

(par 25 cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds —To
selling stockholders. Office—250 Park Avenue, N. Y.
Underwriter—None.

Hinsdale Raceway, Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,shares of capital stock, and 2,000 debenture notes.
Price—The common stock at par ($1 per share) and the

•

Greater All American Markets, Inc.

To be

supplied by amendment. Proceeds—For advance
payments, purchase of inventories and working
capital. Business—Operates eight super markets. Office
-7814 East Firestone Blvd., Downey, Calif. Underwriter
T. Barth & Co., San Francisco, Calif.
rental

Gridoil
Feb.

fered

Freehold

Leases

Ltd.

filed 563,600 shares of common stock to be of¬
in exchange for $2,818,000 of 5Vi% convertible

sinking fund redeemable notes, series A, due July 1,1976,
on the basis of 200 shares for each $1,000 note.
Office—
330 Ninth Avenue, West, Calgary, Canada.
Growth Fund of
Feb.

America, Inc.
250,000 shares of common

filed

Price—At

cents).

Office —1825

market.

(par 10
investment.

Connecticut

Avenue, Washington, D. C.
Investment
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.
Investment

Advisor

Gulf Power Co.

—

plant

building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and
clubhouse.

Underwriter—None.

Hoffman

Motors

Corp.

(3/30-4/3)

March 9 filed 260,000 shares of common stock (par $1),
of which 250,000 shares are to be publicly offered and

10,000 shares to officers and employees. Price—$10 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.

116,667 shares of common stock (par $5).
per share. Proceeds—For working capital and
corporate purposes. Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.
Home Telephone & Telegraph Co.

of Virginia
92,160 shares of capital stock being offered
for subscription by stockholders of record Feb. 27, 1959,

Feb. 19 filed

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¬

derwriter—None.

Hudson
March

Bay Mining & Smelting Co., Ltd. (4/1)
75,000 shares of capital stock (no par).

filed

Stock Exchange.

Proceeds—To selling stockholder. Un¬
derwriter—White, Weld & Co., New York.

quette Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn,
o

—

Min¬

42,193 shares of common stock (par $1)
subscription by common stockholders
at the rate of one share for each seven shares held on
26 filed

be offered for

1959; rights to expire on or about
April 7. 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.
Underwriter—Kalman & Co., Inc., St. Paul, Minn. Offer¬
ing—Expected today (March 19).

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. Y.

Harzfeld's, Inc., Kansas City, Mo.

(4/6-10)

March 11 filed 46,200 shares of common stock (par $4),
of which 7,500 shares are to be sold for company's ac¬
count and 38,700 shares for selling stockholders. Price—
To be supplied .by

amen^ment. Proceeds—For general

corporate purposes, ^ftderwrlier—Stern Brothers & Co.,
Kansas City,- Mo.. /
^\t
,

Hawaiian

Electric Co J, Ltd.

March 16 filed

(4/8)

$lO,GO$,00O/6f-first mortgage bonds, series

K, due March 15,1989;.;Price—To be supplied by amend¬
ment. Proceeds—To 'repay bank loans and for construc¬
tion program.
Underwriters—Dillon, Read & Co. Inc.,
New York; and Dean Witter & Co., San Francisco, Calif.
Heartland Development Corp.
23 (letter of notification) 22,820

Oct.

shares of non¬
convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis
of one share of convertible preference stock for each
voting

1958.

cise

common

stock

held

about

Nov.

Stockholders will have 45 days in which to exer¬
the

about March 23,

Industrial Minerals Corp., Washington, D. C.

July 24 filed 600,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—To develop.and
operate graphite and mica properties in Alabama. Unlerwriters—Dearborn & Co. and Carr-Rigdom & Co.,
both of Washington, D.
ment effective Nov. 18.
e

C.,

on a

best efforts basis. State¬

Inter-Mountain

Telephone Co.
399,000 shares of voting common stock
being 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 to expire on April
10.
Price—At par ($10 per share). Proceeds—For re¬
duction of short-term notes to banks.
Underwriter—
March

filed

Co., Atlanta, Ga. and New York, for 219,341
shares; balance to be offered to two principal stock¬
holders—Southern Bell Telephone & Telegraph Co. and
Courts

Chesapeake & Potomac Telephone Co. of Virginia.

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, two-

International
Dec. 29 filed

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¬

year,

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¬

ington, D. C. Offering—Indefinitely postponed.

writer—None.

Feb.

Co., 205 East 85th St., New

Kratter Corp., New York
16 filed 2,719,950 shares of class A stock and
300,000 shares of class B stock, of which a maximum 01
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 shared
at $10 per share, and on March 4 a total of
300,000 class
B shares at $1 per share to certain
persons; the re¬
maining 12,500 class A shares are to be issued to
Cinaba, Ltd. Office—521 Filth Avenue, New York, N. Y.

Laure Exploration Co., Inc.,

Arnett, Okla.
Price—$3
share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.

Dec. 23 filed 400,000 shares of common stock.
per

Lefcourt Realty

Corp.

3,492,000 shares of common stock, of which
2,622,000 shares were issued in exchange for all of
the common stock of Desser & Garfield,
Inc., and D. G.
& R., Inc.; 750,000 shares will be used for the exerciso
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
to be sold for the account of a selling stockholder. Un¬
derwriter—None.

March

For

(letter of notification) 17,647 shares of com¬
(par $1). Price—$17 per share. Proceeds—
working capital. Underwriter—None.
stock

Life Insurance Securities

Corp., Portland, Me.
28, 1958, filed 1,000,000 shares of capital stock
(par $1). Price—$5 per share. Proceeds—To acquire
50,000 shares of the stock of Maine Insurance Co. and
other insurance companies.
Underwriter—First Maine
Corp., Portland, Me. Registration statement expected

March

to become effective
•

Little

on or

about March 26.

(J. J.)

& Ives Co. (4/15-16)
March 18 filed 250,000 shares of common stock (par 50
cents).
Price—$3.50 per share.
Proceeds—For addi¬
tional working capital to be used principally in pro¬
ducing The American Oxford Encyclopedia.
Under¬
writer—Shields & Co., New York.
Lock Joint Pipe Co.

(4/1)
shares of common stock (par 33}§
cents), of which, 136,716 shares are to be sold for th®
account of selling stockholders. Price—To be supplied
by amendment. Proceeds—For working capital and gen¬
eral corporate purposes. Underwriter—Kidder, Peabody
& Co., New York.
March 3 filed 166,716

^ Lockwood, Kessler & Bartlett Inc.
150,000 shares of class A stock, of which
100,230 shares are to be offered for the account of tho
company and 49,770 for account of selling stockholders.
Price—To be supplied by amendment.
Proceeds—For
working capital.
Office—Syosset, Long Island, N. Y.
Underwriter—Francis I du Pont & Co., New York.
Lorain

Telephone Co.
(letter of notification) 1,562 shares of common
stock (no par) to be offered for subscription by stock¬
holders at the rate of one new share for approximately
Feb.

each

75.1729

held

the

business

March

Indiana Steel Products Co.

and for construction program. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:

filed

B. Fennekohl &

March

•

Imperial Growth Fund, Inc.
March 2 filed 600,000 shares of common stock. Price—At
market. Proceeds — For investment.
Office — 60 Mar¬

—

York, N. Y.

March 25 filed

Price—To be related to market price on the New York

Feb.

(4/2)

Statement effective March 10.

$7,000,000 of first mortgage bonds due
April 1, 1989. Proceeds—To repay short-term bank loans

March

writer

mon

stock

Proceeds—For

(letter of notification) 200,000 shares of common;
(par 10 cents). Price—$1 per share. Proceeds—-To
acquire machinery and equipment and additional spacer
for test laboratories; an# for working
capital. Office--*
4 Manhasset
Ave., Port Washington, L. I., N. Y. Under¬

notes in units of $500 each. Proceeds—For construction
of a track, including land,
grandstand, mutual

general

(4/21-22)

Nov. 28

• Levy Brothers' Clothing Co., Tucson, Ariz.

Price—$6

March 17 filed 300,000 shares of common stock. Price—

1 j i •>

000

New York,

Inc.

Jan. 29 filed

Nov. 5 filed

Itemco

Underwriter—Pearson, Murphy & Co., Inc., New York.

For drilling wells and working capital. Office—632 W.
9th St., Erie, Pa. Underwriter—John G. Cravin & Co.,
r

writer—None.

Underwriter—None.

Dec. 29 filed

Proceeds—To retire term loan indebtedness

Pried

—At 100% of principal amount. Proceeds—For invest-*
Office—511 Fifth Ave., New York, N. Y. Under-*

merit.

(letter of notification) 300,000 shares of com¬
stocks (par 10 cents). Price—$1 per share. Proceeds
—For production equipment for

stock

stock (par $5).
Proceeds—For
including those

July 31, 1964, to be offered in units of $1,000.

4J>

stock

Hermetic Seal Corp.

Nov.

Co.

Gray Drug Stores, Inc. (3/27)
March 6 filed $2,313,500 of convertible debentures due
1974, to be offered for subscription by common stock¬
holders of record on or about March 27, 1959, on the
basis of $100 of debentures for each seven shares held;
rights to expire on April 14. Price—To be supplied by
amendment.

(letter of notification) 28,800 shares of common
(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,

stock

mon

ferred stock

company.

due

Oct. 22

Nov. 13 filed 2,500,000 shares of common
stock

(1453)

Investors Funding Corp. of New York
17 filed $500,000 of 10% subordinated

debentures

17, 1959; rights to expire on May 15, 1959. Price
—$32 per share. Proceeds—To reimburse the treasury.
Office—203 W. Ninth St., Lorain, Ohio. Underwriter—
None.

Power &

Louisiana

Light Co. (4/14)
March 3 filed 75,000 shares of cumulative preferred stock
(par $100). Proceeds—For property improvements ancl
other corporate purposes.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.;
Inc. and Shields & Co.

White, Weld & Co., Blyth & Co.,

(jointly); Merrill Lynch, Pierce^
Smith, Kidder, Peabody & Co. and Harriman
Ripley & Co., Inc, (jointly); Salomon Bros. & Hutzler,!
Eastman Dillon, Union Securities & Co. and Equitable
Securities Corp. (jointly); The First Boston Corp. and
Glore, Forgan & Co. (jointly). Bids — Expected to be
received up to 11:30 a.m. (EST) on April 14 in Room
20337"Two Rector St., New York, N. Y.
Fenner &

LuHoc

Mining Corp.

Sept. 29 filed 350,000 shares of common stock.

Price—$1

share. Proceeds — For the acquisition of properties
option and for various geological expenses* test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.
per

under

Underwriter—None.

Magic Mountain, Inc., Golden, Colo.
Jan. 27 filed 2,250,000 shares of common stock. Price—
$1.50 per share. Proceeds—For construction and working
capital. Underwriter — Allen Investment Co., Boulder,
Colo., on a best-efforts basis.
McQuay,

Inc.

(3/30-4/3)

shares of common stock (par $1).
supplied by amendment. Proceeds—For

March 9 filed 50,000
Price—To

capital expenditures and working capital . Office—160O
Broadway Northeast, Minneapolis, Minn. Underwriter—
Loewi & Co., Inc., Milwaukee, Wis.
*

Continued

page

The Commercial and Financial
Chf&jtiHe

(145*1

Continued from page

Ohio Power Co.

Feb.

filed

•

1989.

March

6, 1959; rights to expire on April 24 (with an oversub¬
scription privilege).
An additional 29,900 shares are
being or will be offered pursuant to the company's
Employee Stock Option Plan. Price—To be supplied by
amendment. Proceeds—To be added to the general funds
of the company and be used for corporate purposes.
Underwriter—None.
Midwest Technical Development Corp.
March 17 filed 400,000 shares of common stock. Price—

$3.75 per share. Proceeds—For general corporate pur¬
poses.
Office—1404 Northwestern Bank Bldg., Minne¬

apolis, Minn.

Underwriter—None.

Millsap Oil & Gas Co.
Price—$1
share. Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

due

Securities & Co. and Salomon Bros. & Hutzler

John

Monongahela Power Co.
Feb.

(3/31)

filed

$16,000,000 of first mortgage bonds due
April 1, 1984. Proceeds—For construction program. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Harriman Ripley & Co., Inc.; Equit¬
able Securities Corp.; W. C. Langley & Co. and The
First Boston Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody & Co. and White, Weld
& Co. (jointly). Bids—Expected to be received up to
11 a.m. (EST) on March 31 at West Penn Electric Co.'s
Office, 50 Broad St., New York, N. Y.
—

Montana

Power Co.

July 1 filed 100,000 shares of common stock (no par).
The. stock will be offered only to bona fide residents
of Montana.

&
•

Co., Inc. Offering—Indefinitely postponed.
National Theatres,

Inc.

Dec. 30 filed $20,000,000 5J/2% sinking fund subordinated
debentures due March 1, 1974, stock purchase warrants

for 454,545 shares of common stock (par $1) and 485,550
warrants to purchase debentures and stock purchase
The debentures and stock purchase warrants
being offered in exchange for National Telefilm As¬
sociates, Inc. common stock and outstanding stock pur¬
warrants.
are

chase warrants. Basis of Exchange—Shareholders of Na¬
tional Telefilm will receive $11 principal amount of de¬

bentures and

purchase warrant for one-quarter share of
National Theatres stock in exchange for each share ol
National Telefilm. For each outstanding warrant of Na¬
a

tional Telefilm, the holder will receive an exchange war¬
rant for the purchase of $11 of debentures and a warrant
for the purchase of one-quarter share of National The¬
atres common. The offer, which
expires April 6, 1959,

bas been declared effective. Dealer-Managers — Crutxenden, Podesta & Co., Cantor, Fitzgerald & Co., Inc.,
and Westheimer & Co.
*

■

.•'

,v;."'•

•*:•.• i1-;1

i# Natural Gas

Pipeline Co. of America (4/9)
$20,000,000 of first mortgage pipeline
bonds due 1979. Price—To be supplied by amendment.

March

filed

Proceeds—Together with
ing bank loans.
and

other

funds, to

pay

outstand¬

Underwriters—Dillon, Read & Co. Inc.

Angeles 17, Calif. Under¬

writer—Waidron & Co., San Francisco
4, Calif.
Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
Itock (par one cent). Price—$2 per share.
Proceeds—To
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.

Shipbuilding Corp.

March 3 filed 621,353 shares of common stock. Price—
To be supplied by amendment. To
be offered from time
to time either

the New

York Stock Exchange at
price
prevailing at time of sale or by public or private sale
at related prices. Proceeds — To
Merritt
Chapman &
Scott Corp., the selling stockholder.
Underwriter—None.
-

★ New

York

March 20

Shipbuilding Corp.

filed 83,334 shares of common
stock, tb be
offered in exchange for common stock of
Higgins, Inc.,
at the rate of one share of New York
mon

Shipbuilding

for each 24 shares of
Higgins common.

com¬

Oily Gas & Minerals, Inc.
notification) 116,000 shares of commoi
stock (par 35 cents).
Price—$1 per share. .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.

Oak

Underwriter—None.

Ridge, Inc.

Sept. 4 (letter of notification) 100,000 shares of
common
stock (par $1). Price —
$3 per share. Proceeds —

Foi

working
Fla.

capital.

Office—11

Flamingo Plaza,

Underwriter —Henry &
Associates,

mingo

Plaza, Hialeah, Fla.

Inc.,

Hialeah
11

Fla¬

Price

it Old Dominion Growth Stock Fund, Inc.
March 19 filed 5,000 shares of capital stock (par $50).
Price—At market.
Proceeds—For investment.
Office—

Suffolk, Va. Investment Adviser—Carnes & Co.

—

slock, 1959 series ($100 par) with attached warrants en¬
titling the holders to purchase an aggregate of 168,000*
shares of

common

This

stock.

offered

includes 2,000 preferred

to company

employees. Price—ToProceeds—For construction'

supplied by amendment.

program and other corporate ' purposes, including re—E
payment of $1,000,000 of bank borrowings. Underwriters
—Allen & Co., Lehman Brothers, Bear Stearns &
Co;/
E. F. Hutton &
Co., and Salomon Bros. 8z Hutzler, all" r

it Putnam
March

•:,

filed

(George)

filed

•

Fund of Boston

(by amendment)

shares of beneficial interest.
ceedsr—For investment:

additional 2,000,000

Price—At /market.

Pro-

Raindor Gold
Jan. 28 (letter of
stock (par

Mines, Ltd.
%')
notification) 290,000 shares of common;"
$1). Price—$1 per share.- Proceeds—To prove

up ore and for road and camp construction.
Office—At
Suite 322,'200. Bay St;,
Toronto, Ont., Canada, and e/o T/:

Arnold,

Wilson : Circle, Rumson,
Co., New York, N. Y.

Sano &

Underwriter—"

Rassco Financial Corp.'
June 26 filed $1,000,000 of
15-year 6% series A sinking
fund debentures due
1973, to be offered in denomination!i.
of $500 and $1,000. Price—At
par. Proceeds—For work-

Ing capital and general corporate purposes. Underwriter;
-Rassco Israel
Corp., New York, on a "best effort*':
basis.

Oppenheintpr Fund, Inc.

—

expansion

Street, N.W.,
C. Kahn Co.,

of New York..

None.

to be

selling$1.50 per share. Proceeds
For,:
and working capital.
Office—1108
Washington 6, D. C.~ UnderwriterWashington, D. C.

60,600 shares of common stock, $43,333.3?
of 3%%'debentures maturing on or before May 6, 1965
$692,000 of (1% 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,Arc
subject to an exchange offer between this corporation
O. K. Rubber, Inc., and O. K. Ko-op Rubber Welding
System, on fin alternative basis. Proceeds—Of the public
offering, will be used for additional working capita)
and/or to service part of the company's debt. Office—
551 Rio Grande Ave.,
Littleton, Colo. Underwriter—

and

company

common

are

Public Service Co. of New Mexico (3 30)
6 filed
56,000 shares of cumulative preferred/

15 filed

Dec.

170,000 shares
30,000 shares ; by

March

Nov. 16 (letter of

•

■

....-

■

;

';"

•r"

Research Investing Fund of
America, Inc.
Feb. 24 filed 200,000 shares of
capital stock. Price—At

100,000 shares of capital stock. Priee—Ai
marked (about $10 per share).
Proceeds—For invest¬
ment, Office—25 Broad St., New York. Underwriter—

market.

Oppenheimer & Co., New York.

rnc.

^Organic Products, Inc.
March 18 (letter of notification) 2,000 shares of
stock and 3,000 shares of 6% preferred stock.
At par

($10

Office—631

Minn.
•

Price—
Proceeds—For working capital.

share).

per

Northwestern

Bank

Bldg.,

Minneapolis

Underwriter—None.

Pacific

Hawaiian

Products Co. (4/6-10)
213,000 shares of common stock (par $1).
supplied by amendment (expected at
around $10.50 per share). Proceeds—To selling, stock¬
holders.
Underwriters
Dempsey-Tegeler & Co., St.
Louis, Mo.; and Morgan & Co., Los Angeles, Calif.
March 9 filed

Price

—

Pacific Power & Light Co. •
Jan. 27 filed 207,852 shares of common stock

being offered to

common

- t

Proceeds

—

new share for each 20 shares held;
March 25. Price — $37.50 per share.
For construction program. Underwriter —

Ladenburg, Thalmann & Co., New York.

(jointly); Merrill Lynch, Pierce, Fenner & Smiti
Co.

(jointly).

Bids

Tentatively
had been expected to be received
up to 11 a.m. (EDT^
on Aug.
27 but company on Aug. 22 decided to defc
sale pending improvement in market
conditions.
SEC
on Feb.
25, 1959 extended to June 16, 1959 period within
company

may

consummate

—

financing.

(letter of notification) 28,250 shares of common
stock to be offered for
subscription by stockholders on
a pro-rata basis.
Rights expire in 15 days. Price—At par
($10 per share). Proceeds—For accounts receivable and
inventories. Office—332 Atando
Ave., Charlotte, N. C.
Underwriter—None.

Peruvian Oils &
Minerals, Ltd.
March 12 filed 400,000 shares of
capital stock. Price—
At the
prevailing market. Proceeds—To selling stock¬
holders.
Office—85 Richmond Street

West,

Canada.

Toronto,

Underwriter—None.

(T. Rowe) Growth Stock Fund, Inc.
March 23 filed (by
amendment) an additional 250,000
shares

the

Fund.

Price—At market.

Office—Baltimore, Md.

(4/1)
shares

cumulative

con-':

preferred stock (par $50). Price—To be sup-:
by. amendment.
Proceeds—To be added to the':

(4/1)

•

shares'of

class

common

stock1

Co., Inc.,' Philadelphia, Pa//:; ^
Robbins Investment Corp.

Jan. 29 filed. 476,000 shares of
common stock.

Price—$1:
Proceeds — For. investments ana
working'
Business — Real estate investments.
Office —*
Alexandria, Va. Underwriters—None.
Tv >
per

share.

capital.

* Schjeldahf

(G. T. )

Co;

filed 42,500 shares of common
stock, which*
offered and sold first to present stockholders
at the rate of one new share for each
eight shares held

April 1, 1959. Price—$10 per share.
increased plant .facilities,, for purchase

Proceeds—For

equipment/

working capital and pther corporate purposes.
Office—{
202 South Division
St., Northfield, Minn. Underwriter—Craig-Halliim, Inc./ Minneapolis, Minn.
*
;
-

Scranton-Spring Brook Water
.(3/30)

;

Service

Co.

V//.-' A;"-

v'
,

March 3 filed $8,000,000 of
sinking fund debentures due.
April 1, 1984 with "common stock warrants to
purchase

80,000 shares of

common

stock to be offered

in units

off

$200 of debentures and warrants for the
pruchase of two
shares of stock for subscription
by common stockholders,
at the rate of

about

one

unit for each

25 shares of stock

held

March 30,

1959; rights to expire about April 15.'
Price—$200 per unit. Proceeds—To repay bank loans.'
Underwriter—Allen & Co:, New York;
Insurance Co.

Sept. 26 (letter of notification) 3,567 shares of common"
stock (par $1).
Price—$18.75 per share
Proceeds—To¬
go to a selling stockholder. Office—400 W.
Vickery Blvd.-:
Fort Worth, Tex.
Underwriter—Kay & Co., Inc., Hous-"
ton, Tex.
"
"
T
;
\
»
^

Shares in American
Industry, Inc.
Dec. 12 filed 50,000 shares of common
stock.
market.? Proceeds—For investment/Office

—

A
Price—At"
1033-30th

St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment
Fund
Management
Corp. Former
Name—/

Shares in America, Inc.
-

*
i

it Price

investment.

vertible

plied

Service Life

Perfecting Service Co.

Ont.,

•

Ritter Finance Co.
March 5 Tiled 30,000

are

by competitive bidding. Probable bidders: Halsey, Stuan
& Co. Inc.; Kidder,
Peabody & Co.; White Weld & Co.
Equitable Securities Corp., and Shields & Co. (jointly)
Lehman Brothers, Eastman
Dillon, Unioq Securities A
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmanr

which

Canada.

couver,

March

Aug. 1 filed $8,000,000 of first mortgage bonds due 1989.
Proceeds—To redeem a like amount of 5% first mort"
gage bonds due 1987.
Underwriter—To be determined

Dean Witter &

share for each three shares held

new

The subscriptiorifollowing issuance of sub-4
scription rights. Price—To be supplied by
amendment;
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added
to'Working t
capital. Underwriter
Pacific Securities Ltd., Van-*/

Routh

writer—Investors Investments Corp., Pasadena, Calif.

and

one

(par $1); Price—To be supplied by amendment. Pro-*
ceeds—To selling stockholders/ Underwriter—-Stroud
&'

Paul, Minn.
Underwriter—
Stone & Webster Securities Corp., New York.

& Co.

the rate of

(with an oversubscription privilege).
period will be for 30 days

25,000

March 9 filed 200,000 shares of common stock (no
par).
Price—To be supplied by amendment. Proceeds—To¬
gether with other funds, to repay bank loan. Office—
2531 University Ave., St.

Pennsylvania Power Co.

Alberta, Canada

Philadelphia, Pa.

Dental Supply Co. of Delaware

Peckman Plan Fund, Inc.,
Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1)
Price—At market.
Proceeds—For investment.
Under

::/V-;•:;

Ltd.,

June 26 filed
1,998,716 shares of common stock (par $1) f
Of this stock,
1,174,716 shares are to be sold on behalf o);
the company and
824,000 shares for the account of cer- A
tain selling stockholders. The
company proposes to offer*
the 1,174,716 shares for
subscription by its shareholder!r

Ritter Finance Co.
March 5 filed

Underwriter—Paramount Mutual Fund Manage¬
(M. F.)

'
Petroleum

ment. Co.

Patterson

general funds .of the company and
initially used to re-"*
duce
temporary notes payable to banks. Underwriter—*
Stroud & Co., Inc.,

Paramount Mutual Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock. Price—Mini¬
mum purchase of shares is
$2,500. Proceeds—For invest¬
ment. Office—404 North Roxbury
Drive, Beverly Hills
Calif.

fj'p;,

—

(par $6.50)
stockholders of record March 3,

1959 at the rate of one

rights to expire

Proceeds—For investment
Office—Englewood,';
Underwriter—First Mutual Securities of
America/

N. J.

Richwell
common

Feb. 26

★ North American Mortgage Corp.
March 16 (letter of
notification) 15,000 shares of 6%
cumulative preferred stock
(par $10) and 15,000 shares
of common stock
(par $1) to be sold in units
consisting
of one share of preferred and
one
share of common.
Price
$15 per unit. Proceeds—For
expansion and work¬
ing capital.
Office—7225 Central
Avenue, St. Peters¬

burg, Fla.

(jointly),

(4/1)

penses and first three months' operational
expenses. Of¬
fice—1250 Wilshire Blvd., Los

New York

16th

& Webster Secu¬
(jointly); Blyth & Co., Inc. Bids—Expected
to be received up to 11 a.m.
(EST) on March 30 at
office of American Electric Power Service Corp., 30
Church St., New York 8, N. Y.

Halsey,, Stuart & Co. Inc., both of New York.

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For
organizational ex¬

general

rities Corp.

Price—To be related to the current market

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and BIytb

sold

Harriman Ripley & Co. Inc., and Stone

O. K. Rubber Welders, Inc.

Thursday, March 26, 1959

Jan. 15 (letter of
notification) 200,000 shares of
stock (par one cent) of which

by the
stockholder.

Dec.

Prudential Enterprises, Inc.

bonds

Proceeds—To repay bank loans and for construc¬

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

Dec. 23 filed 602,786 shares of common stock.

per

•

of first mortgage

tion program.

Mergenthaler Linotype Co., Brooklyn, N. Y. (4/7)
* 17
filed 116,541 shares of capital stock, to be
offered for subscription by stockholders at the rate of
one new share for each four shares held of record April

•

(3/30)

$25,000,000

^Sherburne Corp., Sherburne, Vt.
March 17 (letter of notification) 480 shares of common
stock (par $100). Price—$250 per share.
Proceeds—Ta
purchase equipment and for working capital.
Under-/
writer—None.

Volume

189

5832

Number

The Commercial and Financial Chronicle

and

/Sheridan-Belmont Hotel Co.
Aug. 1.9 (letter of notification) $250,DUO ol 6% converting
debentures due_Sept. 15, 1963 lo be offered for subscrij
tiori by common stockholders on a pro rata basis. Price
At par.

Proceeds—Foi

North Sheridan Rd., Chicago

Office

trols

40,000 shptFes of preferred stock (par $25). Price
Proceeds—For construction and equipment of
company's plant and for working capital.
Office—300
Montgomery St., San Francisco, Calif.
Underwriter—

1959

share'of Texas

—

common

and

shares of 4% cumulative preferred stock,
($25 par—convertible on or prior to May 1,
1969),-to be offered in exchange for common stock of
Metals & Controls. Corp;
n the basis of three-quarters of
737,974

series

31'".
Underwriter—Nor.

working capital;

(1455)

stock for each Metals & Con¬

par.

None.

share, or, if the holder elects, for eighttenths of a preferred share and four-tenths of a common
share. Underwriter—None. Statement effective March 4.

★ Winfield Growth Industries Fund, Inc.
March 23 filed (by amendment) an additional 1,100,000

(U. S. $10.12) per share, and
equivalent; 2.000,000 American shares representing such
1,000.000 capital shares (two American shares represent
one .capital
share).k The company proposes, to. offer
holders pf its American shares on April 13, • 1959, and
holders of its capital shares in the United States, its

^ Texfel Petroleum Corp. (4/6)
March 19 filed 550,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
repayment of the company's 5% notes held by an Amer¬

investment.

territories

operations, and for general corporate purposes, includ¬
ing payment of purchase obligations on certain prop¬
erties, and for the purchase of warehouse inventories.
Office—Republic National Bank Bldg., Dallas, Texas.

14. Ml

ir SIMCA

Societe Anonyme, of France

March

filed

24-

1,000.000

(4/13)

capital -stock,

par

value 5,000 French francs

and

possessions;

right/ to subefibe

the

ican bank,

for

additional Capital

ope

held

(with

Share for each Capital
subscription privilege).

additional

Price—To be supplied by amendment.. Proceedsr-To be
added to the general funds of the
company arid used
for

general

corporate

New
•

Sire Plan of

to be

offered in units of

$50 debenture and

Price—$100

acquisition of motels.

■'

notification)

(letter of

$95,000 of 5% subor¬
Price—At par./Proceeds
—For working capital. Office—919 W. Peachtree Street,
N/E., Atlanta, Ga. Underwriter—None. •=/ . I ,
dinated debentures, series "G."

it Southern
March

Union

Gas

Co.•

(4/10)

filed 442,731

shares of cumulative convertible
second preferred stock to be offered for subscription by
common
stockholders Of record April 10, 1959, on the
basis of one share of preferred for each five common
shares held; rights to expire on or about May 1. Price—
At par ($25 per share).- Proceeds—To repay bank loans

and/for/ pdnstrucjtion program/

•

York.

Southwestern

Electric

Service

Co.

March 3 (letter of

notification) 14,126 shares of common
(par SI) being offered for subscription by stock¬
holders, of. .record^
16, 1959 oh/the bgsis of bne/
new share for each 30 shares now held; rights to ex¬
pire.on April 3. Price:—$16 per share (estimated). Pro¬
stock

ceeds—For construction purposes. Office—1012/Mercantile National Bank Building, Dallas, Texasr Underwriter
—None.

/;/'-•///'//■ /'-///*:

Sports
.Nov.

Arenas

d Delaware)'

///

Inc.

/ /

$2,000,000 of 6% 10-yeai convertible dt
(subordinated), due Jhan 1. 1969
Price—To hf

Arenas

filed

$6".per share).

the
Rd.

Great

/'/'■'"

State

stoeh

market

stock

common

(but

(par

event less

Health

Life,

Trie*—$5

,S1)

Insurance

50,000 shares

pet

Employees Insurance Co.
\pril 16 filed 2,000,000 shares of common stock (par $5
Price —• $10 per share. Proceeds — For acquisition 0
jperating properties, real and/or- personal, includinj
jffice furniture, fixtures, equipment and office space, tr
/ease or purchase. Office — Wilmington, Del. Under
writer—None ' Myrl
L
McKee 'of Portland, Ore., i»

and 975.000 shares of common stock

(par

Glass

••

& -Chemical

Corp.

10 cents)

construction

for

Grand

Estes Hotel

and

Utah

City

Prle

Corp.

and

White,
-

...

Weld
.

Co., both

Eastern Transmission Corp.
filed 344,255 shares of common'stock, to be
options granted or to be granted to desig¬
nated officers and key personnel pursuant to the com¬
19

pany's

Restricted

Stock Option Plan.
Of the 344,255
the subject of future options and the
subject to options heretofore granted.

shares, 81,355
balance

are

Texas
11

are

Instruments,

filed

691.851

Inc., Dallas, Texas

common

stock

filed

offered

filed

Companies (4/3)
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
then held; rights to expire on April 21. Employees will
be offered the privilege of subscribing for 16,000 shares

(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
be used to reduce its short-term bank borrowings, and
for its construction program.
Underwriters—The First
Boston Corp. and White, Weld & Co,, both of New York.
up

to 3:30 p.m.

Western Wood Fiber Co.

(par $1)

Of these

that date.

Price—$4

share. Proceeds—$300,000 will be used for payments
contract to purchase

shares of International Fidelity
$325,000 for capitalization of a fire insur¬
$500,000 for capitalization of a title insur¬
ance company; $500,000 for additional
capital contribu¬
tion to Great Plains Development Co.; and
$300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo.
Under¬
ance

company;

writer—None.

Prospective Offerings
Alabama Power Co.

(4/30)
Dec. 10 it was announced that the company plans the
Issue and sale of $20,000,000 of 30-year first mortgage
bonds. Proceeds — For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬
-

Eastman Dillon, Union Securities & Co., Equitable
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.
/ ;
/:
. ,
1
, ? >
v
ers;

Securities Corp. and Drexel &

^Arkansas Western Gas
March

March 5 filed 100,000 shares of common stock

16 it

sale

(par $10)

Co.

(5/i)

reported, that company plans issuance
$1,000,000 of convertible subordinated de¬
was

Proceeds—Together with other funds, will be
used to retire about $550,000 of bank loans and for ex¬
pansion program. Underwriters—Snow, Sweeney & Co.
Inc., and A. C. Allyn & Co., Inc., both of New York.
Registration—Expected end of March.
Consolidated
March 9 it

Edison

Co.

reported that the

was

Inc.

(5/26)

plans to issue

company

and sell
gage

$50,000,000 to $60,000,000 of first refunuing mort¬
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
be received up to 11 a.m. (EDT) on May 26.

to
•

Consolidated

March

the

Natural

Gas

Co.

(5/21)

directors approved

a plan to offer stock¬
May 21 the right to subscribe for
821,256 additional shares of capital stock on the basis
of one new share for each
10 shares held; rights to
expire on or about June 10. Price—To be below the
market price prevailing at the
time of the offering.

holders

Proceeds
None.

about

For

—

construction

program.

Underwriter—

Consolidated Natural

Gas Co.

18, James Comerford, President, announced that,

in addition to the proposed stock offering to
stockholders,
the company plans this year to issue and sell publicly

$20,000,000

of debentures.
Proceeds—For construction
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

program.

tive

Inc.; Morgan Stanley & Co. and The First Boston Corp.
(jointly); White, Weld & Co. and Paine, Webber, Jack¬
son & Curtis
(jointly).
/
•

and

Western Massachusetts

* Texas

March

offered under

248,394 shares of capital stock (par $1)
for subscription by holders of common
debentures, at the rate of new share for
each four common shares held and eight shares for each
$100 of debentures held (with an oversubscription privi¬
lege). The record date will be the fourth business day
following the effective date of the registration statement and the subscription period will be approximately
20 days. Price—To be supplied by amendment. Proceeds
—For working capital.
Underwriter—None.
to

stock

•

March

share for each 2.33 shares held
per

March

York, Inc.

Victoreen Instrument Co.

thfe

„

(10 cents per share). Proceed*
mining expenses. Office—305 Main St., Park City
Underwriter—Walter Sondrup & Co., Salt Lak«
Utah

March

second

York.

900,000 shares of com

Price—At par

—

filed 440,000 shares of cumulative convertible

Securities

(letter of notification) 300,000 shares of capital
stock. Price
At par ($1 per share). Proceeds — Foi
development of oil and gas lands. Office—5(74 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

(4/7)

preferred stock (par $100). Price—To be supplied
Proceeds—To be used in part to retire
company's outstanding short-term notes issued under
the company's revolving Credit Agreement, the proceeds
from which were used in the expansion of the com¬
pany's properties; and the balance will be added to the
general funds of the company and be used for further
expansion of properties. Underwriters—Stone & Web¬

(letter of notification)

Utah Oil Co. of New

filed

by amendment.

•

May 6

stock.

—For

Gas Transmission Corp..
500,000 shares of common stock, to be
offered to officers and employees of the company and
its subsidiaries
pursuant to the company's restricted
stock option plan.

March

per share).
Proceeds—For exploratior
Underwriter—To be named by amendment
Griswold
of Portland, Ore., is Pre»-

Albert

.••/ /

\pril

* Tennessee

ir Tennessee Gas Transmission Co.

be $1

dent

-non

of princmal amount; and for stock I
share. Proceeds—To erect and operate one or mor»
chemical processing plants using the Bruce - William*
Process to beneficiate manganese ores.
Underwriter
Southwest Shares, Inc.. Austin, Texas.
]
,*

kk/V/'y- //

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

Con¬

Uranium Corp. of America, Portland, Ora.
\pril 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be sunolied by amendment (ex¬

—For bonds, 95%

March

bentures.

Underwriter—None.

Utah Minerals Co.

bone

Probable

Wyoming Corp.

and

Graham

per

Feb.

•

States

□urposes.

bidding.

Nov. 17 filed 1,449,307 shares of common stock.
shares 1,199,307 are subject fa) partially

United

pected

Co.
commoi

Strategic Minerals Corp. of America, Dallas, To*

mrfrfgajfe

competitive

Insurance Co.;

—

one

than

March 31 filed $2,000,000 of first Hen

New

(3/30-4/3)

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer County, Colo.
Office
330 South 39th Street, Boulder, Colo. Under¬
writer—Mid-West Securities Corp., Littleton, Colo.

Proceeds—To b»
Invested .in stocks and bonds and to acquire other lip
Insurance companies Address—P O. Box 678, Gulfpor
vr;«Underwriter—Game Carter & Co.. Gulfport. Miv
Offering was' subsequently withdrawn.
/ /
< par

and Salomon Bros. & Hutzler

April 15.

and

Underwriter—

determined

(jointly); White, Weld & Co., Kidder, Peabody & Co.
(jointly); The First Boston
Corp.; Blyth & Co., Inc. and Lehman Brothers (jointly).
Bids—Expected to be received up to 10:30 a.m. (CST) on

United Tdlirist Enterprises, Inc.
Jan. 28 filed 4,500,000 shares of class A common stock
"(par 50 cents).
Price—$2 per share.
Proceeds—For
development and construction of a "Western Village"

Accident

notification)

(lettei

Neck. N,

Office—Tiffin, Ohio.

Inc.

(4/15)

bidders: Halsey, Stuart & Co. Inc.;
Smith, Barney & Co.
and Robert W. Baird & Co. (jointly); Equitable Securi¬
ties Corp. and Eastman Dillon, Union Securities & Co.

•

Proceeds—To selling stockholders.. Office

Great Neck

None

(Delaware)

461.950

Price—At

cent)

ster

both

vention

Sports

•

Co.,

Proceeds—For

Calif.

property additions and improvements. Underwriter—

Nov. 26 filed 708,750 outstanding shares of common stock
Price—At market. Proceeds — To selling stockholders

None.

July

Thorncliffe Park Ltd.

United

—33

various

supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters. Enc for bowling alley beds; $35p,Q00 to pa>
for other;installations, fixtures and
equipment; $85,OOf
to 1 expand two
present establishments by. increasing
the number of alley beds by eight at Yorktown Height?
and by six at Wilton
Manor Lanes, Fort Lauderdale
$300,000 for deposits on leaseholds, telephones and util¬
ities; and S395,00C for working capital
Undcrwriter-

Nov

Allen

market.

Francisco,

$14,000,000 of first mortgage bo„ds, series
J, due March 1, 1989. Proceeds—To pay part of the cost

York.

Resident.

18 filed

bentures

and

its

Price—At

Wisconsin Power & Light Co.

ir Transcon Petroleum & Development Corp.,
Mangum, Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon
stock.' Price—At par ($1 per share).
Proceeds—
For development of oil properties.
Underwriter—First
Investment Planning Co., Washington, D. C.

Underwriters — Snow,
Sweeney & Co., Inc., and A. C. Allyn & Co., Inc., both

of New

Co.

with

Fund.

Office—San

^/Tour-Travel International, Inc.
March 16 (letter of notification) 17,500 shares of class A
stock (par $1); 26,250 shares of common stock (par 10
cents) and 17,500 warrants, to be offered in units of one
shares of class A stock, lVz shares of common stock and
one warrant.
Price—$10.25 per unit. Proceeds—To re¬
pay loans to officers, employing additional personnel and
for working capital.
Office—300 Connecticut Avenue,
Washington, D. C. Underwriter—None.

/.../v;.:.////.;/

ir Southern Discount Co.
12

Underwriter—Sire Plan Portfolios

Inc., New York.
March

one

connection

the

(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
consisting of $1,000 of debentures and 20 shares of com¬
mon stock.
Price—To be supplied by amendment.
Pro¬
ceeds—For repayment of a loan; to retire all of the com¬
pany's current bank loans; and the balance for working
capital and general corporate purposes. Address—Postal
Station R, Toronto, Ont., Canada. Underwriter—Bache &
Co., New York.

unit/ Proceeds—Foi

per

March 9 fikd

Feb. 20 filed $4,000,000

Elmsford, Inc., New York
Nov. 10 filed $250,000 of 6% 10-year debentures and 5,000 shares of 6% participating preferred stock
(par $50)
o|. preferred stock.

be used

Underwriters—Bache

Underwriter—None.

purposes..

will

and the balance will be added to its general,

funds and

onh, additional American Share-for each American'Share -

holc^.

common

Diamond
Feb.

Static Telephone Co.
(4-21)
announced that this company

was

plans to
$5,000,000 of 35-year debentures. Proceeds
—Principally to replace borrowings for new construc¬
issue and sell

Underwriter—To

tion.

determined

by competitive
Stuart & Co. Inc.;
The First Boston Corp.; Morgan Stanley & Co.; White,
Weld & Co.; Eastman Dillon, Union Securities & Co.
and Kidder, Peabody & Co. (jointly).
Bids—Expected
bidding.

Probable

be received

bidders:

Halsey,

about April 21.

Duke Power Co.
March 9 it

was

reported that the company plans to issue

and sell $25,000,000 of new preferred stock. Underwriter
—To be determined by competitive bidding.
Probable
bidders:

Eastman

Dillon, Union Securities & Co.; The
Corp.; Morgan Stanley & Co.; Stone &
Webster Securities Corp.
Offering — Expected about
First

Boston

mid-year.
El

Paso

Electric

Co.

(5/19)

is planning the
$3,500,000 of first mortgage bonds due 1989. Pro-

Feb. 9 it. was reported that the company

sale of

Continned

page

(1456)

The Commercial and Financial Chronicle

Continued

from

tration—Planned for May 29.

page

ceived

Bids—Expected to be

re¬

June 25.

Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsev. Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith. Inc.; Stone & Webster Securities Corp.; Kidder,
Peabodv & Co.; White, Weld & Co. and Shields & Co.
(jointly) Equitable Securities Corp. and R. W. Pressprich & Co. (jointly). Bids—Expected to be received
construction

ceeds—For

program.

Electric

Paso

(5/19)

Co.

Feb. 9 it
of

20,000 shares of preferred stock (par $100).
Proeeeds-r-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.

(EDT )
El

May 19.

Electric

Paso

Feb. 9 it

was

Co.

(5/12)

reported that the

company

is also planning

offering of 76,494 shares of common stock to common

stockholders

basis

the

each 25 shares held

about

new

one

share for

of May 11, 1959; rights to expire

May 26. Proceeds—For construction program. DealerManager—Stone & Webster Securities Corp., New York.
on

Paso

March 4 it
vote

Natural

Co.

announced stockholders will

was

increasing

Gas

the

authorized

preferred

April 23
to

stock

shares from 472,229 shares, and the common
25,300,000 shares from 20,300,000 shares.^ Pro.•eeds
For major expansion .program. Underwriter —
White, Weld & Co., New York.
1,000,000
etock

—

General

Telephone & Electronics Corp. (4/20)
20 it was reported that an offering of about
000,000 shares of common stock is expected (either to
public or to stockholders). Underwriters—Paine, Web¬
March

ber, Jackson & Curtis and Stone & Webster Securities
Corp., both of New York: and Mitchum, Jones & Templeton, Los Angeles, Calif.
Registration — Expected
March 51.

Georgia Power Co.
Dec. 10 it

was

(9/10)

announced that the company

plans to issue

und sell

$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peabody jk 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.
Eegistration—Planned for Aug. 14. Bids—Expected to
be received on Sept. 10.

writer

—

Probable

bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc.; Equitable Securities
Corp.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on May 13.

was

reported

that

the

plans

to
$6,000,000 of first mortgage bonds. Under¬
company

writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
and

Salomon Bros.

Hutzler

Inc.; Blyth & Co., Inc.
(jointly); Merrill Lynch,

Pierce, Fenner & Smith Inc.; Kidder, Peabody & Co.
Lehman Brothers (jointly).
Bids—Expected to be

and

received

some

time in May.

Interstate Power Co.
March 2 it was reported that the
company is planning
the issuance and sale of

$4,000,000 preferred

stock. Un¬

derwriter—Kidder, Peabody & Co., New York, handled
liast

equity financing through negotiated sale. If de¬
termined
by competitive bidding, probable bidders
•may be Merrill Lynch, Pierce, Fenner & Smith
Inc.,
and Kidder,
Peabody & Co. (jointly); Lehman Brothers
and Blyth &
Co., Inc. (jointly); Smith, Barney & Co.

Offering—Expected in May.
Jersey Central Power

Feb.

10 it

was

Light Co.

announced that the

company is contem¬
of $8,000,000 of first
mortgage bonds.
Underwriters—To be determined by
competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co.
Inc.; White,
Weld & Co.; Kidder,
Peabody & Co.; Salomon Bros. &
Hutzler and Merrill
Lynch, Pierce, Fenner & Smith Inc.
(jointly); Lehman Brothers and Blair & Co., Inc., (joint¬
ly). Offering—Expected during August.

plating the sale

Maine Public Service Co.
(4/24)
March 9 it 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., A. G. Becker & Co.,
Inc., and Kidder, Peabody
& Co., all of New York.
Registration
Planned for
April 1.
/
—

Mississippi Power
X)ec.

was

Co.

announced

Issue and sell

(6/25)
that

this

company

plans

$5,000,000 of 30-year first mortgage bonds,
proceeds—For construction program.
Underwriter—To
he 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¬

company

Equitable Life Assurance Co.

plans an of¬
fering of 950,000 shares of capital stock. Price — $10 per
Proceeds—To increase capital and surplus. Un¬
derwriter—-John M. Tait & Associates, Cincinnati, Ohio.

Dec.

Illinois

reported that the company will sell in
$36,000,000 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

Co.

Inc.; The First Boston Corp.; Glore, Forgan & Co.;
Blyth & Co., Inc.
Northern

States Power Co.
(Minn.)
3, Allen S. King, President, announced that the
company plans about the middle of 1959 to put out a
common stock issue and possibly a
$15,000,000 preferred
stock issue if there is a satisfactory market. Proceeds—
To repay bank loans and for construction program. Un¬
derwriter
To be determined by competitive
bidding
Probable bidders (1:) For preferred stock: Blyth &
Co.,
Inc. and The First Boston Corp. (jointly); Lehman Broth¬
ers
and Riter & Co. (jointly); Merrill
Lynch, Pierce,
Fenner & Smith; Harriman Ripley &
Co., Inc. and East¬
man
Billon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. (2) For common stock: Lehman Brovhers
and Riter & Co. (jointly); The First Boston
Corp., Blyth
& Co., Inc. and Kuhn, Loeb & Co.
(jointly); White, Weld
& Co. and Glore, Forgan & Co.
(jointly); Merrill Lynch
Pierce, Fenner & Smith.

Dec.

—

Our

River

Electric

Co., Luxemburg
Dec. 22 it was reported that this
company plans to offer
$10,000,000 of bonds. Underwriters—The First Boston
Corp. and Kuhn, Loeb & Co., both of New York. Offer¬
ing—Indefinite.

Co., Los Angeles, Calif.; and First

announced that the company is

planning

$15,000,000 of first mortgage bonds.

Un¬

To be determined by competitive
Probable bidders: Halsey, Stuart & Co.
—

bidding.
Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co.; Eastman
Dillon,
Union Securities & Co., Merrill
Lnych, Pierce, Fenner
& Smith Inc. and White, Weld & Co.
(jointly); The First
Boston Corp. and Harriman Ripley & Co. Inc.
(jointly).
Offering—Expected about mid-year.

Pittsburgh & Lake Erie RR.
Feb.

was

Halsey,

Stuart

Hutzler.

Co.

Inc.;

Salomon

Bros.

Public Service Co.

March

and

was

sell

of Colorado

reported

about

that

the

company plans to
of first mortgage 30Underwriter—To be determined

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
Loeb & Co. and Lehman Brothers
(jointly); Morgan
was

Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on June 2.

Southwestern

Jan.

was

reported

that

the

company

plans to

additional

1,273,720 shares of common stock.
acquisitions. Underwriter—J. A.
Hogle & Co., Salt Lake City and New York.
Proceeds—For further

Southern Electric Generating Co. (5/28)
was announced that the
company plans to issue

Dec. 10 it
sell

$25,000,000

Proceeds—For
be

30-year

construction

first

program.

mortgage bonds.
Underwriter—To

determined

by competitive bidding. Probable bid¬
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities
Corp. (jointly);
Merrill Lynch, Pierce, Fenner &
Smith; Kidder, Peabody
& Co. and White, Weld & Co.
(jointly). Registration—
Planned for April 17.
Bids—Expected to be received on
May 28.
i
ders:

•

Southern

March 17
issue

and

Nevada

it was

sell

Power Co.

announced

that

$5,500,000

Proceeds—Together with

(5/11)
the

first

company

mortgage

plans to
bonds.

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.

Electric

Power

Co.

(5/12)

reported

was

writer—To be determined by competitive bidding. Prob¬

Halsey, Stuart & ,Co. Inc.; Merrill Lynch,
Pierce, Fenner & Smith Inc. and Eastman Dillon, Union
& Co. (jointly); Equitable Securities
Corp.;
Lehman Brothers; Kuhn, Loeb &
Co.; Blyth & Co. Inc.

Securities

Bids—Expected to be received
on May 12.

11:30

(EDT)

a.m.

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.
Inc., Chicago, 111.

Co.,

ir Teleflex Ltd.,

Underwriter—A. G.

Toronto, Canada

March

24, R. C. Dobson, President, announced that
the company plans to raise
approximately $1,000,000 in
the near future, partially through debt
financing and

partially through the sale of additional
Underwriter

—

be named later.

stock.

common

Registration

—

Ex¬

Pacific

(3/26)

Ry.

Bids will be received by the
company up to noon
on March 26 at Texas & Pacific
Bldg., Dallas 2,

(CST)
Texas,
$3,000,000 series T equipment
from April 1, 1960 to 1969.
bidders—Halsey, Stuart & Co. Inc.; Salomon

for the purchase from it of
trust certificates maturing

Probable

•

Union

March

Bank, Los Angeles, Calif.

this bank offered 70,028 additional shares of
stock (par $10) to its stockholders of record
March 18, 1959, on the basis of one new share for each
12 shares then
held; rights to expire on

capital

—$59.50

share.

per

Proceeds—to

April 8. Price
capital and

increase

surplus.

Underwriters—Blyth & Co., Inc., and
Frank, Meyer & Fox, both of Los Angeles, Calif.

Stern,

Union Electric Co.

(Mo.)
23, J. W. McAfee, President, stated that the
pany plans to sell about $30,000,000 of additional
stock

mon

later

thi/3

Underwriter—To be determined by competi¬

year

through

rights

com¬
com¬

common

stockholders. Proceeds—For expansion
program. Under¬
writer—May be determined by competitive bidding.
Probable bidders: Lehman
&

Brothers,^White, Weld & Co.,
(jointly); Merrill Lynch, Pierce, Fen¬

Smith, Inc.

of the second

United

Offering—Expected

toward

the

end

third quarter of 1959.

States

National Bank, Portland, Ore.
reported that this bank plans to issue an
additional 23,000 shares of common stock on the basis

Feb. 27 it
of

one

was

share for each 49

new

26, 1959; rights to expire
share.

per

Proceeds—To

shares held

Feb.

of March

April 15, 1959. Price—$50
increase capital and surplus.

Virginia Electric & Power Co.

(6/2)

that the company plans to
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
offer

was

announced

additional

each 20 shares then

held.

Proceeds

Underwriter—To

program.

—

For construction

determined by competi¬

tive

bidding. Probable bidders: Merrill Lynch, Pierce,
Fenner & Smith, Inc.; Stone & Webster Securities
Corp.
Bids—Expected to be received on June 2.
•

Washington Gas Light Co.

and

1 at

able bidders:

March 23

April

that this company (formerly
Southwestern Gas & Electric Co.) plans the issuance and
sale of about $16,000,000 of first
mortgage bonds. Under¬

March
offer

(EST)

Bros. & Hutzler.

★ San Diego Imperial Corp.
it

to noon

Broadway, New York, N. Y., for the purchase from
the company of $7,620,000 of equipment trust certificates.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon

ner

bonds, due 1989.
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.
and Smith Barney & Co. (jointly); Harriman
Ripley &
Co. Inc., Eastman Dillon, Union Securities &
Co., Mer¬
rill Lynch, Pierce, Fenner & Smith Inc. and Dean Witter
& Co. (jointly); Lehman Brothers,
Kidder, Peabody &
Co. and White, Weld & Co. (jointly).
Bids—Expected
to be received up to 11 a.m. (EDT) on
April 28.

(4/1)

Bids will be received up
165

and Shields & Co.

(4/28)

$20,000,000

year

Jan. 30 it

Co.

Feb.

(4/7)

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

issue

Pacific

Bros. & Hutzler.

Pennsylvania Electric Co.
of

California Co., San

Francisco, Calif.

Texas

through subscription rights. Purpose—To acquire Fair¬
banks, Morse & Co. common stock. Underwriter—Bear,
Stearns & Co., New York.

sale

(4/28)

plans early
registration of $1,500,000 of preferred stock. Proceeds—
To repay temporary bank loans.
Underwriters—May be
Hornblower & Weeks, New York; William R. Staats &

Penn-Texas Corp.

was

Power Co.

pected about May 1.

Jan. 28, Alfons Landa, President, said the
company may
offer its stockholders $7,000,000 additional
capital stock

Feb. 10 it

Thursday, March 26, 1959

announced that the company

was

Southern

1959 about

•

Southern Nevada

Co.

Gas

tive 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
up to 9 a.m. (PST) on or about May 11 in the offices ol
0'Melveny& Myers, Room 900, 433 South Spring Street,
Los Angeles 13, Calif.
/,

March 17 it

share.

Northern

& Co. Inc.; Salo¬

announced that the company

was

bidders:

Interstate Power Co.

March

issue and sell

April 2 in

sive. Probable bidders: Halsey, Stuart
Bros. & Hutzler.

derwriter

issue and

mon

the

(5/13)
was
reported that the company plans to
sell $15,000,000 of first mortgage bonds. Under¬
To be determined by competitive
bidding.

(4/2)
(EST)

noon

equipment trust certificates due
semi-annually from Oct. 1, 1959 to April 1, 1974, inclu¬

March

Ry.
to

received up

$7,350,000 series

4^ Idaho Power Co.
16

Western

Philadelphia, Pa., for the purchase from the

Dec. 1 it

reported that the company plans the sale

was

will

North American
,

Bids

11 a.m. (EDT) on May 19.

up to

★ Norfolk

offer

ferred
on

it
and

stock,
about

(4/27)
reported that the company

was

sell

first

$10,000,000
to

common

April 27, 1959.

new

now

convertible

stockholders

plans
pre¬

record

Proceeds—For construction

program.
Underwriters—The First Boston Corp., New
York; and Johnston, Lemon & Co., Washington, D. C.

West Penn Power Co.

(5/25)
reported the company contemplates the
about $14,000,000 of first mortgage
bonds, Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
March 10 it

issue

and

was

sale

Lehman Brothers and Eastman
Dillon,
& Co. (jointly); The First Boston

Union Securities
Corp. and Harriman
Ripley & Co. Inc. (jointly); Kidder, Peabody & Co. and
White, Weld & Co. (jointly). Bids—Expected to be re¬

ceived up to noon (EST) on May 25 at office of West
Penn Electric Co., 50 Broad
St., New York, N. Y.

Worth
Feb.

Fund, Inc.
it

reported

that the Fund was planning
$5,000,000 of common, stock. Price—
Around $14.25 per share. Underwriters—Blair & Co. Inc.
and G. H. Walker & Co., both of New York.
Offering—
Indefinitely postponed.
0
.}
the

sale

was

of about

Volume

189

Number 5832

The Commercial and Financial Chronicle

(1457)

The

Indications of Current
Business Activity

week
Latest

AMERICAN

IRON

STEEL

AND

INSTITUTE:

Steel

ingots and castings

AMERICAN

PETROLEUM

(net

Mar. 29

tons)——.

Gasoline

output
Kerosene output

§2,627,000

*2,631,090

Mar

7,212,920

output

Mar

14,189.000

15,103,000

.Mar. 13

7,334,000

7,500,000

210,290,000

207,015,000
18,985,000

200,120,000

80,610,000
54,835,000

88,255,000

ASSOCIATION

AMERICAN

55,646,000

CIVIL
'

•

"•

ENGINEERING CONSTRUCTION
NEWS-RECORD:
J
Total U. S. construction——
Private
Public,

•

cars)—Mar. 14

595,302

Bituminous

(U.

543,395

coal

$393,700,000

211,894,000

$278,202,000
132,318,000

169,900,000

186,439,000

129,400,000

144,800,000

138,189,000

39,000,000

25,100,000

48,250,000

113,411,000
32,533,000

AND

(COMMERCIAL

7.625,000

7,715,000

8,175,000

—Mar, 14

374,000

394,000

366,000

INDUSTRIAL)

PRICES

(E.

Export

'■

(New

(St.

York)

(East

Straits

12,996,000

13,259,000

I 292
6.L96C

6.196c

G.lOGc

Total

BOND

Other

066.41

SG6.41

$66.41

$41.17

$43.83

29.650c

Mar. 18

31.300c

30.525c

28.800c

11.500c

11.500c
11.300c

11.500c

vl 12.000c

11.000c

11.500c

24.700c

—Mar. 18

103.375c

193.500c

102.750C

—__—Mar 24

85.63

85.65

86.29

—Mar. 24

90.06

Mar. 24

93.97

94.12

92.35
!)C. 06

94.12

92.50

92.79
90.06
83.66

89.23

Public Utilities
L_—_-i—_ Mar. 24
.vIndustrials.Groiipii'v_—Mar 24

89.78

89.92

89.64

96.85

92.06

91.77

91.34

98.25

—

YIELD^DAILY AVERAGES:
U; S. OoYernminit^Boti'dsi-——.
——Mar. 24
/;'- Average
cm'porate_LL£_J'_r——_——...Mar. 24
"""""Mar.

•

NATIONAL

4.41

4.13

.4.13

3.04

4.25

4.24

4.22

•

4.41

COTTON

4.89

4.33

388.8

338.1

382.5

399.2

305,979

369,514
315,717

289,084

249,513
272,450

r.\PEKROARD ASSOCL\TION:
—_____14

"Production (tohs'r i—:—.

4.27

4.29

4.44
-

—

Crushed

474,212

409,012

19-19

AVERAGE

Stocks

sales

Total
"•

—.

purchases-

Short

sales

Other

sales

the

Stocks

2,613,450

2,770,520

467,780

432,030

409,290

1,060,210
247,030

1,990,660

2,121,280

2,365,440

——-Feb.

2,458,440

2,553,360

2,774,730

28
28

—

—,—Feb.

413,720

465,700

524,180

23
28

479,420

■>23,700

508,780

—

582,430
60,000

542,440
44,600

floor-

off the

278,400

Total

—

94,360

796,565

964,226

819,065

935,835

1,070,996

388,815
483,175

Feb.

———Feb.
.

DEALERS

AND

SPECIALISTS

EXCHANGE—SECUURITIES
sales

Odd-lot

Number

Dollar
Odd-lot

dealers

(customers'

——

EXCHANGE

FOR

—

SECURITIES

ACCOUNT

round-lot

Short

THE

EXCHANGE

sales

—

1,633,681

1,715,674

799,683

(1947-49

Other

22,443

Net

$34,969,399

$81,199,960;

$86,131,861

429,040

440,080

466,120

429~040
627,700

440,080
734,768

466,120

744,010

Processed

foods

All commodities

•

other

than farm

and foods

—Feb.

831,480

740,140

16,482,230

17,3i 3.710

697,830

693,290

13,586,090

19,323,390

8,379,320

19.326,230

20.021,720

9,072,610

78.6

64.6

64.2

63.7

34.3

33.2

*43.9

'119.3

119.4

119.6

91.2

*90.5

91.0

99.8

107.2

107.8

109.9

99.0

99.3

100.1

106.1

_Mar. 17

127.8

■•127.7

127.6

125.9

Mar

11.8

*12.4

12.2

9.2
■>

31.2

—

contribution

for

social

10.8

19.6

19.2

26.0

■

10.6

19.6

*26.0

23.3

in¬
7.6

6.8

6.6

345.1

*342.4

333.0

$77,599,874

$80,186,629

$59,632,070

60,987,252
138,587,126
10,904,981

income_

—

;

for

from

income

fixed charges
charges

24,326,454
104,513,083

56,726,178
116,358,248

127,682,145

5,481,389

6,079,632
110,278,616

99,031,694
67,265,749

7,716,409
88,425,241

4,177,204
63,088,545

50,634,888

50,028,809

22,278,634

23,634,972

431,687

62,604,437

64,979,989

24,154,501

681,360

6,563,992

1,496,302

4.05

3.12

3.60

$22,992,650

$14,138,000

$288,000,000

285,103,661

285,801,183

112,308

105,713

102,764

$285,215,969

$285,906,727

$274,781,548

422,602

423,058

435,205

$284,793,367

$285,483,G69

$274,346,343

$3,206,632

$2,516,330

Ratio

fixed

deductions
income

income

taxes

79,622,869

4,282,188

75,340,681
48,277,237

appropriation^:

common

stock

preferred

AND

;

—

stock

income

TREASURY MARKET

—

fixed

charges

TRANSACTIONS IN DI¬

GUARANTEED

A.- -Month of

SECURITIES

February:

sales

purchases

■

$155,900,000

S. GOVT. STATUTORY DEBT LIMITATION
—As of Feb. 28

Total

face

(000's omitted):

amount

that may

be outstanding

gross

public debt
obligations not

owned

Total gross

$280,000,000

-274,678,784

the

Treasury

public debt and guaranteed

obligations
Deduct—other

outstanding public debt obli¬
gations not subject to debt limitation

♦Revised figure.

of Jan.

*13.5

12.4

—

9.3

*32.0

'13.3

income

deductions

after

Guaranteed

119.4

40.6

9.4

time
Outstanding—
Mar. 17

99.8

,32.3

at any

^Includes 1,067,000 barrels of foreign crude runs.
§Based 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.
as

79.9

persons

available

Mar. 17
..

H0.1

December:

RECT

Mar. 17
_

237.3

*101.0

96,141,650

236]360
964,360

income

Total

Meats

*$348.8

*243.3

101.4

;

Net

—!

*$359.9

244.5

44.1

payments

Dividend

100):

products—

$362.3

Federal

236,360

U. S. DEPT. OF

AU commodities

£70,494,000

STATES

COMMERCE)—Month

Depreciation (way & structure & equipment)

777,240
$33,864,833

Commodity Group—
Farm

£41,388,000

123,746

BRITAIN

of Feb

income

Income

C03IMISSION

——

£46,336,000

GREAT

nonagricultural income

Income

7,136
1,708,538

Feb.

—

107,924

—

railway, operating

1,643,706

(SHARES):

122,326

141,100

12.5

Miscellaneous

STOCK

i—

112,400
132,000

130,100

SELECTED INCOME ITEMS OF U. S. CLASS I
RYS. (Interstate Commerce
Commission)—

$40,936,390

8,545

-Feb.

Total sales

130,100

34.4

interest

Net

MEMBERS

;

professional

employees'

$97,385,106

1,675,136

241,455

surance

Total

933,532

11,127

242,917

income

Transfer

Less

2,019,354
$102,617,671

1,632,639

238,031!

295,500

112,400

31—

ISSUES

and

Personal

sales—

WHOLESALE PRICES, NEW SERIES
LABOR

Rental

1,939,608
$9.9,429,957

—Feb.

sales

Other

SALES

1,885,697

78,500

267,200

Total

—_Feb.

—

Total

Feb.

—

labor

Month

—Feb

—

79,600

262,100
261,000

Dividends

Net

Feb.

;

—

STOCK

4.414,506

Feb.

Round-lot purchases by dealers—
Number of shares—:

ROUND-LOT

4,014,895

Feb

—

Round-lot sales by dealers—
Number of shares—Total sales——
sales

3.756,925

Feb.

——

Other

370,490
1,387,495
1,757,985

Feb.

value

3,853,866

sales)—

—

sales

560,660

3,383,545

—Feb.,28

(customers'

Farm

Other

other sales

Short

1,675,960

631,350

3,094,775

521,545

1,367,412

January in billions:

Other

STOCK

-Customers'

4,083,630

662,150

272,511

562,900

———_4„

Jan.
(tons)
(tons)

Government

purchases)•—f

orders—Customers' total sales
-Customers' short sales

TOTAL

3,959,365

OF ODD-

—

purchases by dealers

Dollar

3,350,370

337,350

541,700

1,929,900

31—

Jan.

(tons)

Business

COMMISSION

EXCHANGE

value.

Number

139,270

770,670

Feb.

—

sales

LOT

763,435

Feb

_—

sales

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT

•

106,770

690,395

587,170

transactions for account of members-

sales

Other

{

128,670

purchases

Short
Total

Feb.

u—•

sales

round-lot

Total

-Feb.

Other

147,400

1,507,400

Service industries

29,100

—..Feb.

127.0

569,800

3Li___—

Commodity producing industries
Manufacturing only
Distributing industries

Total purchases
Short sales ■_.

116.6

(tons)_^—_

personal income
h__
Wage and salary receipts, total

248,450

—

450,620
65,700

127.8

127.3

Total

219,350

Feb.

—_

—

transactions initiated

Month

-.,1

(tons)

CAPITAL

1,026,360

~——Feb.

——

NEW

779,330

2,312,580

——_..—Feb.

—

mills

(DEPARTMENT
23

141.7

116.9

129.4

PROD¬

PERSONAL INCOME IN THE UNITED

128.4

129.0

127.3

(tons).

Produced

floor—

——

sales

Total
Other

109.76

.Feb.

——lv.44——•

—

transactions initiated

Other

110.70

..Feb.

sales

Other sales

Total

110.56

COMMERCE-

MIDLAND BANK LTD.—Month

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registeredTotal purchases—
,
—
— Feb.
Short

110.58

133.3

147.3

117.0

Hulls-

MEM¬

(tons)

Shipped
Mar 20

ACCOUNT

FOR

138.7
182.4

133.1

SEED

„

Shipped

393,182

100—

TRANSACTIONS

COTTON

(tons)
(tons)
Jan.

Stocks

470,191

310,348

AND

Cake and Meal—

OIL, PAINT AND DRUG REPORTER PRICE INDEXROUND-LOT

SEED

Produced

307,440

91.9

144.3
191.8

147.6

care

Received

3,86

Mar

—

98.8

129.3

92.3

Cotton Seed—

3.95

4.32

Mar. 14
—..Mar. 14

—

Percentage of activity—.
;
Unfilled orders (tons) at end of period

+.42

4.43

108.0

130.4

144.1

care—

January:

:>->4.69

4.47

106.9

100.2

191.8

„

—_—

UCTS—DEPT.

4.06

4.86

4.51

—

129.7

108.4

91.7

—

104.2

107.5

108.0

138.4

132.8

98.7

——————

115.7

103.6

130.8

boys'
girls'——

136.8

137.0

133.1

—

Reading and recreation
Other goods and services—

3.79

483

and

Medical

4.05

4.41

4.52

Mar. 24

:——

4.41

4.14

127.1

118.2

138.9

138.7

106.7

operation

Private

2.96

Mar 24
Mar. 24
—-Mar. 24

MOODY'S/('OMiVHlDlTYii>'DEX
.4

3.80

Mar. 24

•

-r^puhhcvULmties^Gfoh^rrf-—

;

3.89

:—————:_Mar. 24

■

—

pj
r

128.2

103.2

oil

—

Personal
3.8.9

113.1

113.6

118.2

——

fuel

Public

MOOD Y'S BOND

121.9

110.7

138.8

electricity

and

114.6

120.1

114.0

1953—100)

110.2

114.3

109.9

(Jan.

132.5

113.0

114.1

home

from home

116.7

113.8

—

118.2

134.0

121.7

—;

122.3

116.8

133.9

vegetables

123.7
118.7

117.1

Transportation

91.19

4,290
2,515

119.0

—II
III—III

Other apparel

86.24

88.67

5,018

100—

123.8

Women's and
Footwear

95.16

3,543
2,639

128.2

foods

away

Men's

99.36

90.06
34.04

„I

J._—

and

Apparel

—

—Mar 24

7,914
10,191
3,386

Houscfurnishings

101.80

88.54

•

INDEX —1917-19

Solid fuels and

95.32

4Baa

11,200

4,504

—_—

Gas

94.61

V '••ViTtailroad .-Group,

2,069

10,647
3,464

■

2,679

Other

AVERAGES:

84.43

8,495

8,582

loans

credit

at home

Food

94.500c

15,235

9,007
2,145

8,607

modernization

loans

Household

Baa

t'.

-v

$43,904
33,713

14,131

Housing

26.000c

Mar

and

Fruits

10.000c

Mar. 18

._r-j——

33,865

14,155
3,881
2,125

—I

goods

10.500c

Mar. 18

——.——.———

99.5%.) at————

$45,065

33,768

Cereal and bakery products—
Meats, poultry and fish

12.800c

•Average corporate————

$44,415

consumer

Food

13.000c

11.300c.

U. S. Government Bonds

$776,000

Month of January:
items

20.850c

11.500c

DAILY

4 $875,000

31:

credit

Food

23.550c

11.300c

PRICES

$897,000

Service credit

$36.33

3i.l00c

—

$376,400

Single payment loans
Charge accounts

$66.49

040.83

—Mar. 18

at—

$873,700

All

——Mar. 18

(000's

credit

Repairs

357
•••

31.350c

DEPT.

OUTSTANDING—FED¬

of Jan.

consumer

Instalment

5.967c

Mar. 17

February

SERIES—Esti¬
Intermediate term credit

and

CONSUMER PRICE

310

at——-—4-—Mar. 18

■

short

in millions

QUOTATIONS):

_i:,

SYSTEM—REVISED

mated

11,756,000

Mar

at——

(New jYork)

Aaa

12,900,000

11,501,000

$387,000
PAPER

Dairy products

(primary pig.

tin

MOODY'S

SERVE

114

.—--.-Mar. 18

St. Louis)

Aluminum

111

)

Louis)

tZinq .(delivered)
Zinc

copper—

refinery
refinery at

Lead

118

—Mar. 17

Domestic
Lead

124

311

:———-—

Month

Noninstalment

Mar. 19

PUBLICLY REPORTED BY ^

•—

RESERVE BANK OF NEW YORK—
of Feb. 28
(000's omitted)—

7,792,000
322,000

—

224,156,000

shipped between

CORPORATIONS—U.

Personal

PRICES:

(per gross ton)——————;
Scrap steel (per gross ton)-,.——

Electrolytic

DUN

—

(per lb.)

Pig iron
METAL

Mar. 21

—_

COMPOSITE

Finished steel

Mar. 14

—i..

BRADSTREET, INC
IRON AGE

INSTITUTE:

(in 000 kwli.)

249,694,000

000

$261,285,000

1,160,869,000 1,132,653,000 1,522,767,000

Automobile

468,885,000
110,250,000

17o'631

omitted)

145,944,000

,—.

155,009,000
118,270,000

12 570 000

countries

COMMERCE

OF MINES):

—

FAILURES

$398,333,000

202,200,000

108,400,000

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE
100
Mar. 14

Electric output

$372,100,000

225,300,000

—.

446,690,000

lll'^o'.OOO

and

345,691,000
13,015,000

252,412,000

stored

$250,974,000

338,711,000

CONSUMER CREDIT OUTSTANDING—BOARD
OF
GOVERNORS
OF
THE
FEDERAL RE¬

—U—Mar. 19

and lignite

EDISON ELECTRIC

529,198

Mar. 19

„.

(tons).;
Pennsylvania anthracite (tons)_

foreign

Ago

$274,669,000
'

credits

Total

539,127

578,825

564,102

567,134

Mar. 19

S. BUREAU

goods

Year

Month

ERAL

595,930

_Mar. 19

;

COAL OUTPUT

Mar. 19

;

Federal

construction—

construction

V- State and municipal.

;

7,161,000

of that date:]

28:

exchange

Based

2,693,000

ENGINEERING

Dollar

COMMERCIAL
(no. of

Feb.

—

CASH DIVIDENDS

55,010,000

—Mar

—

warehouse

11,891,000

•

7,479,000
25,647,000

RAILROADS:

(number of cars)_
Revenue'freight received from connections

7,954,000
26,762,000
2,952,000
15,420,000
7,354,000

2,393,000

78,876,000

Mar. 13

6,256,985

are as

either for the

ilJANK

55,061,000

8,207,000

27,461,000

18,988,000

Mar. .13

Revenue freight loaded

7,154,820

are

Month

OUT¬

RESERVE

shipments

81,853,000

terminals, in transit, in pipe lines—
Finished and unfinished gasoline
(bbls.) at
L
Mar. 13
Kerosene (bbls.) at
Mar. 13
at
Residual fuel oil (bbls.) at—

ACCEPTANCES

YORK—As

Domestic

17,459,000

(bbls.)

DOLLAR

Imports

216,525,000

19,953,000

Mar

(bbls.)

of quotations,

cases

Latest

Domestic
13

Mar. 13

(bbls.)

DistiHate

1,366,000

7,127,270
$8,233,000
28,332,000
2,315,000

average.(bbls.)

Residual fuel oil output (bbls.)
Stocks at refineries, bulk

Distillate fuel oil

2,506,000

;

or,

STANDING— FEDERAL

50.6

Exports
(bbls.

(bbls.)

fuel oil

Ago

88.5

Mar

to stills—daily

that date,

BANKERS'

INSTITUTE:

runs

production and other figures for thfr

cover

Dates shown in first column

Year

Ago

*92.9

Mar. 29

oil and condensate
output—daily average
gallons each)—

Crude

month ended
Month

Week

§92.8

month available.

OF NEW

Crude
42

Week

Indicated Steel operations (per cent capacity)
Equivalent to—

following statistical tabulations

latest week

Grand

total

outstanding
Balance face amount of obligations, issuable
under above authority
—

$5,653,656

54 "

The Commercial and Financial

(1458)

McDonald Co. to Admit
Ohio — Dean

admitted

will

Lauritzen

Mutual Funds

partnership in McDonald & Com¬
pany on April 1 and will make his
headquarters at the Canton office
in the First National Bank Build¬

ing.

Forms Nassau Securities

SQUARE,^N.

holdings, the
sity

Y.~

name

the nation's leading college and univer¬
are
continuing to maintain substantial

funds

insurance

study of 68 prominent college endow¬
ment funds by Boston Fund, one of the largest mutual investment
companies in the U- S. The report disclosed that some $1.7 billion
of the combined endowment money of more than $3.4 billion
was in common stock at the fiscal year end of the respective col¬
leges in 1958. This represents 51.7% of the total.
-

firm

of Nassau Securities Service.

revealed in

was

decade

INVESTMENT

ance

The

FOLDER AND PROSPECTUS TO

RESEARCH CORPORATION
established 1930

120 Broadway,

New York 5, N. Y.

Five of these issues, the
list of the 10 stocks most

duPont

funds

5555

\n-

stocks

,C°poss*^ed
and
and

—

McGill

Montreal

,\p^
r\nc»

ot P
ome.

lar

\nc

Gulf, California Standard and Socony also
with the fund managers.
1
In

the

other

stock
-w.

'nvesting flam'
*tele°t eerily
cks
of

'"come

s'ble

'Pal

onci

World

In
Prospectuses available from
your

Investment

Dealer

The

were

not guaranteed

popu¬

Leading Metals

Net assets

of International

sources

093,859

EATON & HOWARD, Incorporated
24 Federal St., Boston 10, Mass.

Fund

from

the
,

increased

Re¬

$19,during

$18,828,728
period ended
1959, it was stated

ton in his

Coleman

Mor¬

quarterly report to the

shareholders. Net asset value per
share increased
to $4.29 from

during the period

$4.09.

The continuing

y
U.

economy,

recovery of

witnessed

the

the
the

developing

mon

Market should create

European

focused
those
are

the

upon

companies

being
of

fortunes

closely linked to the European

market, the report stated.
In

addition to

time

major companies which appear
likely to benefit from the grow¬
ing European Common Market,

past three months, has resulted in
greater demand for industrial raw

ternational Resources

materials,

folio

Mr. Morton told the
shareholders. "Prices of certain

metals, such as copper, tin, and
; platinum have risen with the im¬
in

provement
-"For

demand," he said.
nearly all categories of nat¬

ural

resource

producers,

the

new

names

appearing in the In¬
Fund

port¬

during the quarter included
Union Oil Company of California,
Arkansas

Lousiana

Gas,'

Truaxr

Traer

Coal, Mt. Isa Mines, Limi¬
ted, Cerro de Pasco, Atlas Steels
Limited,

and

National

Corporation. s

surance.

Research
-

•>

certain

number

able

sell

insurance

annuity,
fund

amounts. For your

FREE

in varying

copy

of this in¬

thus

Congress St., Boston 9, Mass.

ruling

will

{

7* ««♦»»»

Investment

are

Nome KMHIfttlMI •###••••

e.e fee res

this

Fund

possible
long-term
capital
and
growth for its shareholders.

income

••#*!«

Prospectus

Address.

objectives

upon

request

both

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—»

Los Angeles

Keystone B-3 Set;

are

20-Y ear Reco r< Li I

I111

Br3 increased its income payments
showed an 8% gain in capi¬

and

tal

with

seen

annual

for

Co. of

surance

fiscal

Keystone B-3 paid 460

last

half

fiscal

91-cent

total

for

1958,

months

the largest,
after adjusting
capital gains distributions, in
the-last
twenty years. For the
comparable
preceding 12-month

'was

for

long

high court

period, the payment
On

price

leading

two

report for the period end¬

the

The

America,

last

the

450 for the first half of fiscal 1959.

fund

surance

for

ed Jan. 31.

many

/ :/'•

value

half-years, according to the semi¬

who

Payments

lie.

Keystone Low-Priced Bond Fund

.mutual
•

the

basis

the

end

880.

was

the

offering

the

period,

Keystone

B-3 showed a current
annuities, maintains that this de-. income, return of better than 5 %
on a diversified portfolio that,
cision
has
in^
paved ^the; way for
of

the

sale

variable

action

eluded 62 bonds in the railroad,'
utility,
industrial
and
foreign
categories.
r; >■'.
<

by the New Jersey Legis¬

lature to legalize the sale of vari¬
able annuities.
How many other

states

will follow suit due to the
Keystone President S. L. SholSupreme Court decision to follow ;ley, in his report to the Fund's
similar action is.a.matter which
18,764 shareholders, attributes the
only time will tell.
^
L// performance.. to r the - continued
strength and breadth of the> busi¬

Boston Income

Fund Reaches

ing

Highs

Income

Fund

-the

Boston,

March 25 released its An¬

Report

for

the: fiscal

year

Jan.

31, 1959, from, which
following is gleaned:

(1) Total dividends of 440 dur¬
ing the fiscal year represent an
income
divided

price

ness
recovery-.and to tportfolio
changes designed to improve in¬
without -undue f risk to. capi¬
tal. He, "Some of the lower-yield¬

come

return

the

during

5.45%

average

the

fiscal

(440

offering
year

$8.07).

Z-41

96V2%.

variable

reducing

sub¬

stock holdings was about the same
at
the end of 1958,
namely

regular

the

victory for the
industry of the in¬
industry. Prudential In¬

mutual

ended

A Common Stock Investment Fund

will

term basis whether this

the
THE KEYSTONE COMPANY

well

It remains to

nual

Fund

stated that there had been

stantial changes since the start of
1959. The percentage of common

insur¬

salesmen

representation

Inc.

formative booklet and prospectus, write

acquisitions

regard to portfolio changes,
spokesman for the corporation

amounts

likely prospects.

..The
...

there

nothing def¬

new

they sell life in¬

will

New
BONDS FOR INCOME

that

Thus,

inter¬

was

time.

this

differs

the life

was

inite in regard to

to sell mutual-funds at the

advocate

several stocks

stated that there

life insurance salesmen have been

ever

securities

whose

for fixed

company

in increasing its capital by
acquiring additional persona h
holding companies. It was further

Especially in the last few years,

larger demand for raw materials.
Equally important, investor atten¬
tion both here and abroad is

investment

compames' succes^ in invest¬
ing in common stocks/^

Com¬

Lehman

ance

Free

which makes

economy

the

three-months

February 28,
by President

segment

annuity

but fluctuate with

;

variable

told by President Robert
that the big closed-end

ested

from the fixed annuities in that the

growing prosperity of the

important

corpora¬

were

rea¬

payments to the policyholders

outlook is for higher earnings in
1959 than in 1958."

Cites Price Gains

meeting,

of the

they have had to do here¬

The

same

c;0mi*°n

Princ

annual

tion.

groups,

Int'l Resources

recent

stockholders

tion

function

important

At vtfie

the

industry
and
the
hedge
this type of policy would
give their policyholders on infla¬

prone

the

which

for

•000,000/7

fund

and

Consumers Power and Commonwealth
Edison
were
tops among the public utilities, Bankers. Trust
among the banks, Insurance Company of North America among
the insurance companies and Union Pacific
among the railroads.

JEfrK

other

mutual

duplication

Corporation, after the acquisition,
amounted to approximately $304/

why the insurance companies
have
been advocating state
ap¬
proval through passage of legisla¬
tion on this subject have been the
tremendous growth of the mutual

and away the most favorite holding.
Petroleum
the list with Jersey Standard and Texas in all 14

portfolios.

Corporation has ac¬
all of the net assets' of
Corporation, amounting

The total >net assets of Lehman

un¬

sons

includes college endowments

far

were

issues topped

all

Two of the most

universities

tofore.

An examination of the common stock diversification of 14
institutions With endowments of $1.1 billion reveals that industrial

t°r

gro

Canadian

two

both

Federal /regulation

same

tions as

Queen's at Kingston, Ontario.

roon

Peacock

they themselves have been
created to perform. ;■ Thus, the in¬
dustry is elated to note that their
possible competitors will have to
abide by the same Federal regula¬

analysis disclosed, are also included
widely held by some 250 investment
assets of about $13 billion.
U. S.

survey

Lehman

quired

which

million.

EAT0N&HOWARD

stocks
cpro®

Fund

the

The

ranging in size from Harvard's $535 million down to Bates' $4
Among the larger endowments are those of Yale, Univer¬
sity of Chicago, M. I. T., University of Rochester, Northwestern,
Princeton, University of California and Cornell.
Also included in the new report are the college endowment

CONSIDER...

tede(i

Boston

27, 1959.

Exchanges and

types j of • securities.
fund industry has.
long viewed the variable annuity

Motors, Christiana and duPont.
new

Feb.

the

hybrid security and should be
der

companies with investable
Steel, Amerada Petroleum, Bethlehem Steel, International Paper
and Royal Dutch Petroleum are held in the investment company
portfolios in place of: Eastman Kodak, General Electric, General
The

Corppanies,

Acquisition |
By Lehman Corp.

SEC, the
Security

to
$11,797,487 in exchange for
many 390,516 shares of its
capital stock.
financial afield:
The assets '.,of Peacock Corpora 7
pressed for a high pourt decision
tion, a family holding company,
on
the question of: the variable
consisted principally of a diver¬
annuity, has been their contention
sified list oilcommon stocks.
:
that this type of ! annuity is a

York

others

Other stocks among the top 10 include: Texas Company,
Eastman Kodak Company, General Electric, Standard Oil (Cali¬

fornia), Gulf Oil, General Motors, Christiana Securities,
(E. I.) deNemours, and International Business Machines.

Investment

New

issues.

NATIONAL SECURITIES &

Association

$7,625

paid $1,944

New

Dealers, the National Association

The survey reported that 60 out of the 68 college portfolios,
with total value in excess of $3 billion, held Jersey Standard

YOUR INVESTMENT DEALER OR

Fed¬

why jthe

reason

National

Looking at the 10 favorite stocks of U. S. colleges, the study
that Standard Oil Company (New Jersey) continues as
the most popular common holding.

FREE INFORMATION

to sell vari¬

well

now

addition, during this
same
period, each share of the
Fund has also paid to sharehold¬
ers
a
total of 49.160 per khare
from net realized capital gains.;
/

Since each insur¬

able annuities.

showed

WRITE FOR

(5)

endeavoring to

value

1955 has

income

ment

is state regulated,
ruling will mean that

new

asset

in cash dividends from net invest¬

eral regulation over the functions
of insurance companies on vari¬

institutional funds."

hamtSetieii

Feb.

company

this

Henry T. Vance, President of the $200 million mutual fund,
said, "We are pleased to make available the results of our reseach
in this highly interesting field.
Our management is constantly
at work obtaining data on new developments in institutional
investing as Boston Fund follows much the same concept of
balanced investing as many college endowment, trust and other

l&a/mtal

been

there will be state

2.9%.

FUND

have

able annuities.

The remainder of the combined endowments was split up
this way: bonds and cash made up 31.4%; preferred stocks, 4.1%;
real estate and mortgages, 6.8%; and other forms of investment

A MUTUAL

companies for nearly

net

percentage of the life

receive authorization

Jan. 31, 1959,

26.49%

(4) Each share of the Fund with

sell

which

annuity

A certain

•

adjusted
the capital gains distribution
paid during the year.

States

contracts
are
subject to regulation by the Secu¬
rities and Exchange Commission.

managers of

endowment
This

securities business from offices at
547 Hewlett Street under the

variable

Jan.

for

United

companies

surance

slight reductions have been made in common stock

investments in equities.

engaging in a

Irving Garber is

some

of $19,389,469 on

ago.

year

increase

Supreme Court ruled that life in¬

Colleges Maintain Substantial Stock Holdings
While

the

assets

(3)
The net asset value per
share increased from $6.87 on Jan.

Variable Annuities
March

Thursday, March 26, 1959

31, 1958 to $8.59

By ROBERT R. RICH

FRANKLIN

Control Over

total

SEC Obtains

CANTON,

Chronicle

(2) Total assets of the Fund

Jan. 31, 1959, were

utility and .foreign issues
portfolio—which

their purpose

by holding up well
during the 1955-57; de¬
cline
in
bond
prices — were
replaced
by higher yielding
bonds. Many of these acquisitions
were

railroad issues

bought-early
when they were avail¬
unusually advantageous

in the year
able

yields."
Keystone increased its rail
holdings by about 3%,. with this
category accounting for approxi¬
mately 50% of the total net assets
of $47,588,104 as of Jan. 31, 1959.
Industrials

and

increase of 73.8%

over

the

served

pricewise

$33,697,113, the
highest in the history of the Fund
an

had

while

were

boosted

corresponding

about

adjust-

189

Volume

Number 5832

The Commercial and Financial Chronicle

(1459)
ments were made among

ities

and

the

foreigns.

slightly

the

report,

number

outstanding

decreased

from

net

year

there

-ever,

decreased

ago

-an'

Deveiis Looks for J

action

auto-

mobile

.he

profits corporate earnings
dividends, too, could -reach
highs in the current year,"
stockholders.

second

disposed

lean

back

wait

and

System's

offering
to
1,799,057 shares

common.

Fixed Term Issues
Armco

steel

Co-'s

$75

million

de?e«rtuTes'jdue on.
JParket next Wednesday provided

for;the tax picture to unfold in
Washington. Hearings are underway on a
bill which would, if
passed, change their tax status

a1 loss.

m5e Monongahela Power Co.

xjntil the air is cleared the portion

4T.P^Sf„a£r0Uni?S 0l!t.^hls P.^rl

research and advisory

these

circumstances the

portfolio

company

life

taking

profit

hondfnf<nl P™ri°n °f

it is said,

men,

cannot figure iust how thev would

fare

tbere is no change in plans, will
Pravide next week s largest single
undertaking.
It will be preceded by bidding,

considerably.

"The

quarter

Gas

stockholders
of

place, are

first services to investment companies. 0f such
or ioss fhat could be
show;
According tofClinton Davidson, charged
off
is." not
definitely
greater
earnings
on
the-Dow- chairman of thie board and Ray- known. Jones Industrial Average than at;
mond e. Hartz, Chairman of the
But through all this, plus the
anytime during its history. He Executive Committee, of Town- decision of the Treasury to market
emphasized,' however, that : there send investment Company, "The
$500 million of 10-year bonds as
is
no
doubt that the market is
interest in the Long organization a
part of its cash raising operanow
at
a
level which places a
told

.and-

bia

major part of the overall picture,
InThese big companies, judging by
reports in the market

and on

Wednesday bankers will bid for
the "standby" privilege on Colum-

rendering

result of the boom' in the steel in-

new

fornia Electric Power Co.

its

and

company

The secondary investment market these days is feeling the effect
of a veritable dearth of interest
on the part of life insurance cornpanies which normally provide a

investment advisor respectively of
Fudamental Investors, Diversified
Investment Fund and Diversified
Growth Stock JPund, investment
companies with'iassets in excess of
$675,000,000, fourth largest in the
industry. Investors Management
Company was established in 1924.
Its business corisists exclusively of

1959.-and' 1960
was
forecast by Charles Devens,
President of Incorporated Investors,
at the Fund's 33rd annual
meeting held in Boston.
'-As a

and

pur-

not disclosed.

Long

for*16

iri

riremium
premium

ereater
gi eater

acquired because its record in

selectivity1
selectivity

ralslng and managing capital has
-h
nntstanriineif* adminiatrn-

proceduresare wellZanized

7 '

in the past."

years

'■We believethat the Gross Na-

and

personnel

structure

pro-

tional Prodis will he at the rate

$470,000,000 during 1959/' Mr.

Devens said-

spending from wage increases to
furnish the major stimulus to the
economy. Consumer spending will
also
encourage
managements to
spend more money on plant and
equipment," Mr. u Devens told
stockholders, adding that "little
*

Fund

increase

(

the

for
•

42%

capital

$9.69, an
adjusting

after

gain

distribution

$0.27. During the year, total
assets of the Fund increased from

$210,000,000 to $307,000,000 while
outstanding increased from

shares
30

million to 31.7 million.

the

representation on the boards
of any of the companies in the
Long group."

op¬

eontinuitZ

to#

Pat Boone, the singing star, with
Company,
has bought two radio stations, one
jn the Fort Worth—Dallas, Texas,
area and one in Nashville, Term,

The resident management that
has made the stations successful
will be retained in each instance.
The

seller

stations

the

widc.

-j. musf

work regardless

pUf

exist.

Demand

this

kind

has been sufficient to keep things

pretty much

on an even

keel.

The underwriting fraternity was
pleasantly surprised by the recep¬

issues of Cleve¬

new

Co.

this

week.

PREFERENCE STOCK,

Dividend No. 48

28 cents per share;

printing

food,

and

stockholders

end

numbered

field.

The

|>etter than had been anti-

bidding

was over

and the reoffer-

ing bases fixed.

NOTICE

MEETING

realty

terms

were

Earlier

General Sales

Corp.

joined

offering

public

'shares

cents)

of General

being'

made

of: 120,000

stock

common

(par 50

Sales Corp.

Ross

v
-

advisory

expenses

provide

tribution
for

and

the

board

order

American

establishment

Club,

order

mail

division; purchase of mailing
lists, mailing equipment and fa-

April
record

1959

15,

the Company's

payable

the close of business March

Dividends

office in Los

Angeles, April 30.

stockholders of
p. c.

27, 1959.

hale,

Treasurer

Cumulative

the 4.6%

March 19,1959

$25 par value Preferred Stock are pay¬

stockholders of

able June 15, 1959 to
record May 28,1959.

Robert A. Wallace

Vice President and Secretary

March 17, 1959

Bogota, New Jersey

Pacific Gas and Electric
w

Company
CORPORATION

FINANCE

DIVIDEND NOTICE
On

March 17,

the
declared

1959,

Board of Directors

regular quarterly dividends
on

Preferred

Stock of this

corporation, payable to stock¬
of record April 15,

holders

follows!

The Board of Directors

Per

able

5-1-59

$1.25

Preferred Stock,

cash dividend for the

first quarter of
of

mon

cents

the

per

year

the Company's com¬
capital stock. This

dividend will be paid by
check on April 15, 1959,
to

common

stockholders

of record at the close of

business

Preferred Stock,

Mar. 27,1959.

K. C.

CHRISTENSEN,
Vice President and Treasurer
5-1-59

$0.29"/i6

San Fronclsco, Calif.

Company and Boone to buy

the two radio stations.

}p
b. c. reynolds,

•

Secretary

FLORIDA
*OOOO•••**••••00000

Wis.—James

■

POWER ALIGHT COMPANY

(Special to The financial Chronicle)

MILWAUKEE,

Miami 30, Florida

Kieckhefer has become associated

with

CoT Inc^rated"

retail

,;n

holders of the Common Stock of Florida

Light Company of record at the

close of business
to

April 6,1959, arc entitled

merchandising
pacific Northwest through
operation of the following

POWER

& LIGHT COMPANY

Meeting of Stockholders to be held in
the

discount

PACIFIC

notice of and to vote at the Annual

Sky Room, Dupont Plaza Hotel,

300

~
^

NOTICE IS HEREBY CIVEN that the

Power &

Biscayne Boulevard Way, Miami,
on Monday, May 11, 1959, at

Florida,

Dividend Notice

10:30 o'clock AM.

Nevada
on
Aug. 26,
1958.
Its
principal office is located at 1105
N.
E. Broadway, Portland,
Ore.

residing in the Pacific, Northwest;

Quarterly dividends of $1.25 per share on the 5%
preferred stock, $1.13 per share on the 4.52% serial
preferred stock, $1.54 per share on the 6.16% serial
preferred stock, $1.41 per share on the 5.64% serial
preferred stock, and 40 cents per share on the
common
stock of Pacific Power & Light Company
have been declared for payment AprO 10, 1959, to
stockholders
of record
"at the close of business

The

and

March 31, 1959.

cilities; and additions to working
capital.
The

company

sole

was

organized in

the

proprietorship

successor

which

has

saies divisions:
—a

discount

west

ice

Government

American

buyer's

general public.

tends to

company.

The company is engaged

Buyers'

service

been owned and operated

Employees—a buying servoperated for the benefit of

Federal

employees
Club

available

—

The company inA. B. C. opera-

mail order direct

purcnase program.

florida... growing

"iusinessland" where
factories and families
thrive

Blaylock

Secretary
March 23,1959

the

expand

tions to include

W. F.

Sales Co.

located

Portland, Ore.; Associated North-

man

by HerGoldberg for one year prior
the incorporation of the present

General

house

March 18, 1959, declared
a

upon
Rate

Pay-

5% Series

Now With Loewi & Co.

PACIFIC

Fund Series

ment-

catalogue

Buyers'

Checks will be mailed

$100 par value

discount supermarket

of mail

12 months

of the New York and Midwest
for the
General
Sales- Division; Stock Exchanges. Mr. Kieckhefer
purchases of additional inventory; was formerly with Goldman,
expenses of preparation and disSachs & Co. in Chicago,
to

magic vacationiand

Boone

5 of remodelling enlarged sales area 225 East Mason Street, members
u

holders

Stock.
the 4.6%

50< per share on Common
Per

share.

April 30, 1959 to stock¬
of record April 5.
from

able

Common Stock dividends are

per

The above dividends are pay¬

has this
quarterly

dividends:

the decision for Townsend Invest-

$2.50

from this fi-

trancing will be used for

Paper Board Company, Inc.
day, declared the following

$25 par value
43A% Sinking

best efforts basis.

The net proceeds

...

Securities,

Inc., of New York City, at

share,

the

Mr.

28% cents

Federal

of Directors

Growth
Fund, a major mutual
fund. Out of this association came

■*, per

florida

in the year

month

Dividend No. 44

Divtdends:

Date
:

disclosed.*

not

this

Board

The

1959, as

Townsend U. S. and International

Common Stock Offered
.

involved

sum

Common & Preferred

J'nated in most quarters after the

$1,000,000, the principals said. The

66.000.

4.56% CONVERTIBLE SERIES

FEDERAL PAPER BOARD CO., Inc.

And although there was nothing
approaching
the
"out-the-window" demand, inquiry turned out

"year

PREFERENCE STOCK,

Bidding for both

the

quarterly divi¬

......

investor with broad interests in

has

payment

65 cents per share;

proved quite brisk

Cleveland Electric Illuminating
Kluge, Chairman of the
Co.'s new
4%s were priced to
Board, Metropolitan Broadcasting
Corporation of New York, who is yield 4.285% and Montana Power's

John

the

4.48% CONVERTIBLE SERIES

2834 F

of the unknown quantities that

authorized

Dividend No. 197

DIVIDEND NOTICES

Cumulative Preferred Stock.

The fact remains that money
COntinUeS t0 Pile UP and SOme °f

dividends

The Board of Directors

land Electric and Montana Power

Stations

Townsend ." Investment

marked

spread.

tion accorded

Radio

Two

Buy

SSS fL\nCfw S
Sf,f Jn
from $7.01 to

-the

participate

have

the record of Incorporated Investors during 1958,

not

management of the company nor

can

Pointing to

will

increased stimulus to the economy
4.
be expected -to - come/ from
j

aPP^p^ately 24% of the

fl°«nielv^that°SPany'invp«;toreanH
solely.that of an investor aid

consumer

government spending.

opinion," they said, "it

our

been

not

+ini

-"'".f

{"We must ctepend on

TithnnThrVnid?pnr2~
cPni^nnrnlhriatPlv 94^
thp

$480,000,000 as
compared / with
$460,000,000 during the first quar¬

"In

...

'should be the best of the year at

institution.

"The fourth quarter

ter."

of valua? a,nd

„The,e

account or useii.
has been some -shadil,g

Company

COMMON STOCK

calendar when bids will

tion, the market has continued to
g,ve a g00(j account of itself

California

Edison

dends:

may

and diversification than lor many

Southern

the following

V? y tor $io million boi

DIVIDEND NOTICES

Tuesday
brings up for bids
300,000 common shares of Cali-

management

contl-act to

wholly-owned |; subsidiary,
Management
Company,
serve as national underwriter and

for

fund
a

vestors

dustry and the recovery

were

The

During 1959 & 1960
.-Prosperity

through

Chase l20,Q00 shares of the Class B
non-voting stock
of Hugh
W.
Long and Co., Inc. of Elizabeth,
New Jersey. Terms of the trans-

Good Business

mutual

the

pretty

000 shares of Ford Motor Co. stock
by the Ford Foundation.

rio

field

opened for $7 million of bonds eft
Gulf Power Co.

tthe

issue

evenly divided
offerings and equi¬
ties with one of the largest
taking
the form of a
secondary of 2,000,-

on March 23 announced
further extension of its interests
in

new

between debt

The Townsend Investment Com-

sharevwhich
^

schedule

PanY

increase, in the

per

Next week finds the

JjLllgll W • JLiOllg

18,764
of 19,357. How-

was an

value

asset

or 1907.

'-JL

addition, the number of sharealso

a tag which returned
the buyer a yield of 4.43%.

O/iO/
in
^/0 lUJCl CSl 111

holders

4y2s carried

1UH11&C11U

of Jan. 31 to 2,898,678
against 2,912,546 a year earlier.

■

that

nrVv«A-MO*y1<1fl
"

semi-annual

noted:

was

the util-

H. W. Mfllay, Secretary
PORTLAND, OREGON
March 18, 1959

The Commercial and Financial Chronicle

(1460)

N. Y.

BUSINESS BUZZ

More than 300
tend

A y* gJ
jTjL IW\A/

from the Nation'*

Capital

Analysts to He

On Chemical

Washington...
Behind-the-Seen® Interpretation*

Thursday, March 26,

wij

lectures

presented by Allied Chemical

series

Indusj

analysts

poration

the invitation

-Education Committee of Th<
Yoik

Society of Security Am
H.
Randell,
Comi
:Chairman, announced today!
Donald

WASHINGTON,

C. —Be¬

of solar stills for conversion

use

water

brackish

fresh water in this country

in
the ever-rising standard of liv¬

ing. Congress seven

sities

enacted

ventional fuels are

growing

of. the

cause

use

sion Act.

are

inten¬

Street,

the importance of that
grows. If the standard
living is to continue to rise
in
the
decades
ahead, there
must be more fresh water.

cost of electrical power or nu¬

ously,

the

Today

"has

Water

tremendous

clear

Saline

Office

search program under way. It
Is
being accelerated.
Experi-

inexpensive

desalt

way

brackish

the

sea

metropolitan

New York and Los Angeles and

others, that already have
acute water problems.

conversion

coming down.
scientists
and
engineers
have a long way to go.

gradually

The

vapor, produced from
water
in
the bottom
of

sea
the

basins, condenses on the inside
of the transparent cover and

But
still

down

runs

edge

tion.

The

stills

three

are

Secretary of Interior Fred A.
says the day scientists
a "break through" and
the cost of conversion is brought

The research

Seaton

about

achieve

station is

the water faucet

only

Spokesmen
that

cents

headlines

with

all

the

over

country.

Kapid Progress Achieved

Conversion
distill

plants
water

fresh

can

for

now

There

little

world

under SI for each 1,000 gallons.

The

cost

still

too

high

for

and

sea

water

the

from

briny lakes.
than

laboratory in¬
vestigations are currently being
conducted

under

campaign directed by the De¬
partment of Interior. This coun¬
try is cooperating with councries
Government

overseas.

Secretary

for

Seaton,

routine

its face

was

functory, but it

submarine

handout.

strictly

;
>

Cabinet

of
Saline
Waters,
the salinity of the waters

available

The

salt.

Water

parts

less

Fresh

than .1,000

What

the

The

the

com¬

water
'

future

of
"

going

ten years.

mil¬

■

con¬

cost

Operations,

General

Chemi

Division

pro¬

Transportation—
Warren J. Sullivan, Director
Traffic, Allied Chemical C<
Marketing—
William

Winfield, Presic

International Division

Policies

Governing

Handling

Financial Data-

Joins J. B. Henri Co.

William Warmack, Supervisor
(Special to The Financial Chronicle>
Appropriations and Spe<
DENVER, Colo.—John M. Ken¬
Studies, Allied Chemical C
nedy, III has joined the staff of
J. B. Henri & Co., Guaranty Bank
APRIL 28
Building.
Varied
Growth Patterns i

Chemical Groups—

Hayden, Stone Adds

(Special to The Financial Chronicle)

PORTLAND,Plummer

has

Me.

been

Earl

—

added

Edward

;

the

Corp.

the •. Chemi<

Industry—' ' 7*.
Maurice

Congress Street.

•

Colo.

—

F. Grass, Jr., Secreta
Manufacturing ChemiSti" Ass

eiation—

With Peters, Writer
(Special to The financial Chronicle)

DENVER,

Dunn,

What's' Ahead-, for

staff of Hayden, Stone & Co., 47?

down

Comptrolk
Department,\ A11 i ed Chemi

James

;

•"

\. t

Showing, of Monsanto Chemi
Company's motion picture, "1
D.
World That Nature Forgot"

done, including that by univer¬

where municipalities and indus¬

Jones

completion of an ex¬
perimental dee-basin solar still

sities

tries

Peters, Writer & Christensen, 724

for

Officer

an¬

nounced

water conversion.

This

stills

ing

sea

that will

tested

and

great promise in the freez¬
It takes less en¬
ergy to freeze water, for in¬
stance, than it does to heat

devel¬

oped by the Battelle Memorial
Institute of Columbus. Ohio, at
a

seashore

hear Port

solar

research

Orange, Fla.

site

the

most

source

en¬

valuable

natural

country cannot afford to waste

the-cuff

including

present

Secretary; "it

the

best

chance

time/'
appears

for

•

;

observations

its fresh water

that

our

TRADING MARKETS
American Cement

said
that

munities
known

Botany Mills
Heywopd-Wakefield
« Indian Head Mills .
*

W. L Maxson

what

46
it

states

have

to turn

Morgan Engineering
National Co.

Carl Marks

Co. Inc.

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

supply.

-In

recent years the Interior
Department estimates that peo¬
ple living in thousands of com¬

expanded

Seventeenth Street.

of the country. President

intermittently has
pointed out in speeches and off-

plant

the

saline water and make it fresh

with

re¬

amortization

the

distill; the

Civilization around the \v6rld

Eisenhower

"At,

connected

processes.

ergy otherwise required. Other
costs, such as cost of equipment
and operating costs

invest¬
ment* must be considered in
computing the total cost of conversion, Mr. Seaton explains.

afford

now

is crying for fresh water. Fresh
water in the United States is

Distillation by means of solar
heat has the advantage of elimi-

can

•water.

pating the cost of the fuel

and

colleges over the
country, has been helpful. There

is the first of three solar

[This column is intended to re¬
APRIL 21
flect the "behind the scene" inter¬
pretation from the nations Capital Financing theChdmical Industry
and may or may not coincide with David Climan, Staff Assistant
the "Chronicle's"' own views.}
Treasurer, Allied Chemical C<|

The cost

brought

water

piping costs are re¬
Certainly the signifi¬
cance
of desalting sea water
will be far greater to the future
generations than it is today.

next five

sea

Devel

Chemical Manufacturing—
J.
Steele
Brown, Director

in¬

new

duced.

conversion, the experts agree, is
going to be cheaper within the

conversion

duction and

with

per

salts.

dollars

APRIL

called

parts

lion of dissolved

version?

water

defined

monly

than

than 1,000

million

per

brackish.
less

salty

but with

Division

in areas like Texas, Okla¬

desaltation of

But in the Persian Gulf it

nearly 40,000 parts per mil¬
lion; in Chesapeake Bay about
15,000, and in the Baltic Sea
only 7,000.

caps

progress, it still in its
infancy. All the research being

conversion varies

Skate

marked

for

greatly. The oceans are fairly
uniform, averaging about 35,000
parts per million of dissolved

atomic

and

Jenkins, Director of

Chemical

Douglas H. Ross, Director, Proc
Development,
Solvay
Pro(

homa,
California,
and
New
Mexico, will result from direct

Cer¬

users.

Office

says

process
de¬
velopment program, despite the

per-

in the overall research program.

The

the

got their
cooking
water
from the sea. Converted water
is being used to produce elec¬
tricity at Morro Bay, Calif.

important

was

Nautilus

water

David S.

their historic voyages under

Lincoln,

news

the

oceans

the

abroad

men

the polar
ice
instance, ■*' drinking
and

Neb., newspaper publisher in
private life, issued through his
"office

industrial

come

by large

tainly the conversion of ocean
water is going to cost more than
the
natural
supply of water.
All of these things will figure
in the overall cost of produc¬
tion of goods in the future.

community — Coalings,
Calif.—began to obtain its water
supply from brackish pools un¬
derground for the first time in
American history.
The

;d■

version !methods.

day,

prices presently paid

V;
C

ment—

Many new com¬

Some economists believe that
billions

H.
Bigelow.
Plastics
&

Chemicals Division

probably will spring
the arid and semi-arid
areas of the Western part of the
country*

Industry no longer can count
on receiving fresh water
sup-\
plies in large quantities at

Maurice

Commercial

—

President,

munities

Will Cost More

agencies

private industries are re¬
searching the salt-water con¬

other

the

United States.

other livestock.

entire

and

The

ish water into fresh water.

coordinated

that

faster

uses looms not
Desalting sea water
is likely to have a marked ef¬
fect on the arid lands of the

far ahead.

More water is

crops.

Dr.

for agricultural

Key Characterise
the Industry—

Conversion of brackish waters

em¬

and

also needed for beef cattle and

all

cities will

numerous

converted

use

doubt

moved

staple

and

during the past 10 years than in
preceding human history.
The year 1958 was an important
one. A South African plant be¬
gan converting more than 3,000,000 gallons a day of brack¬

unicipalities

ing when

has

Interior

APRIL

Research

erator and drink.

duction of fruits and vegetables

fresh water conversion research

and
industries
to afford. But the day is com¬
xn

Today's Chemical IndustryA.
Coleman. Gen

enough to put it in the refrig¬

out.

come

fresh water is needed for agri¬
cultural irrigation in the pro¬

located

In the final days of the 1958
session, Congress authorized the
spending of $10,000,000 for five
additional experimental plants.

and have

on,

cough of air

phasize

Beach, Fla.

cents per 1,000 gallons, the an¬
nouncement will be front-paged

Counsel, Allied Chemical C

miles below Daytona

Lawrence

ex¬

pected to produce a total of 500
gallons of fresh water each day.

Cost Still Too High

down

Commerce, 65 Liberty St;
York, N. Y.
I.-. J

Definitions and Characteristic

the

collec¬

for

basin

the

channels

■

them

Its
History and Fundame
Marketing Principles—
Walter J. Murphy, Editorial
rector, American Chemical
ciety Applied Publications j

ALWAYS IN ORBIT--OVER CANADA

cooperative

Society of Sect
;v ;V ■,
.' }'

The American Chemical Indus

Orange, Fla., solar station. The
still consists of black-bottomed
basins with transparent covers.

man has been hopeful "of find¬
ing an economical way of de¬
salting sea water, Great results
have already been chalked up,

cost

prese
Comm

shallow basin stills for the Port

For 200 or 300 years or more

the

MARCH

agreement
with Interior, has
provided the basic designs and
plastic materials for the two

many

and

Education

Analysts.
of

duPont de Nemours and/

Company,

news

areas

the

New

will have to be
down first.
In other

duPont's Contribution
E.

to great

Great Hall, New York

production costs before it could
be used on a large scale.

made.

Some progress is being
should he favorable

of
.

competitive with
fossil fuels, or below present

water.

Tiiis

tion

will have to be

into fresh

water

series" of : lectyres

words the cost of atomic energy

mental plants are being estab¬
lished in an effort to find an
and

power,

energy

brought

re¬

will be:/-.;- j

program

by Allied' Chemical at the im

plants be
set up as a means of cutting
the cost of conversion, How-'
ever; authorities at the Interior
Department maintain that the

The

gested to the Office of Saline
Water, which is under Interior,

statute

industry

Chamber of Commerce, 65 Lit

nuclear

operations

will run \
March 31 through April. 28
will
be
held at the New t

Congress, some
scientists and others have sug¬

that

the

chemical

high, and where con¬
expensive."

are?

Members

Although it made no head¬
lines, the Congressional action \
was highly important.
With the
water table dropping continu¬

(

series

and in certain

areas

arid regions where solar

years ago
Saline Water Conver¬

sea

isolated

TEL: HANOVER 2-0050

•

NEW YORK 5, N. Y.

TELETYPE NY 1-871

Southeastern Pub. Serv.
United States Envelope;

LERNER & CO.
Investment Securities

10 Post Office

Teletyj

Telephone
HUbbard

Square, Boston 9, Mas

2-1980,-

BS 6!

Full text of Commercial and Financial Chronicle : March 26, 1959, Vol. 189, No. 5832

FRASER