Full text of Commercial and Financial Chronicle : March 5, 1959, Vol. 189, No. 5826

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

J

ESTABLISHED 1839

Commercial
MAR 6*1:359

Reg. U. S. Pat. Office

?yolume 189

-j:

Number 5826

;.opEDITORIAL
v4b.i

'

«

In

^
-

one

of his exuberant moods
Khrushchev

By DR. WILLIAM C. FREUND*

two

a year or

informed

visitor

a

would live under Socialism.

Few

were

a

production at near capacity and upward
push in interest rates will occur in the second half of the
year. Dr. Freund depicts $3.9 billion increase in supply

seriously, although a num¬
ber of students of the trends in our public policies
during the past decade or two had by that time
developed certain definite misgivings. To these
latter it sometimes appears not quite outside the
bounds of possibility that the Kremlin boss may
,be right. But more recently another worry about
oour future seems to have taken
strong hold of a
'-good many in this country.
This uneasiness
fsprings less from our own foolish vagaries — if
:3 it springs from them at all—than from the prog¬

of and demand for

Commenting

the

on

omist admonishes

of

warns

directions

and

their

determination to': bring

reaches

!

V.

He

warns

on

his

that

us

impression "that

no

in

•

not

are

decisions,

the

into

future

life.

the

omy one

and

on

record.

of

recovery

have been crowded
short period of time.
Now, with activity back more nearly
into

shape
a

:

future

•

i

or

to

to

consumers;

new.

factory, is

business

plans

in

the

and

future

policies

and

to

more

DEALERS

Continued

\

on

April

address

American

afforded

tial undertakings

by Dr. Freund before the Essex County Chapter of
of Banking, Newark, N. J.

r

-

rate

of

of

industrial

the im¬
point of

has

substan¬

year

been

and momentum is still in an
upward direction.
The Federal Re¬

r '

.

'

:

V

\

•

.

r

'

•

'?

*r

'

-

\

on

'

*

page

4

37

address

by Mr. Michener before the Midwestern Mortgage
Conference. Mortgage Bankers Association of America, Chicago, 111.,
Feb. 25,

1959.

complete picture of issues

in

our

now registered with the SEC and poten¬
"Securities in Registration" Section, starting on page 38.

MUNICIPAL

ANO

State, Municipal

CHEMICAL

MONTHLY

Associate Member American Stock Exchange

view

Pasadena, Pomona, Redlands, Riverside,

THE FIRST NATIONAL CITY IANK

\

ANO AMEfUCAM STOCK

15 BROAD STREET, NEW
CABLE:

Dl 4-1400

YORK 5, N. Y. ' •

Boad Dept.

-

Net
To

T.L.WATSON&CO.
:

r -

1832

ESTABLISHED
-

-

*

>

Markets

Active

Banks

Dealers,

American Stock

.

NEW YORK 4, N. Y.

•

Block

•

PERTH AMBOY

-

We offer,to buy

March

it, 1959)

California

these rights at the'

current

market.'

•.
...

i
s

private wires to Toronto, Montreal,'
and

115 BROADWAY
NEW YORK .'

'

|

Halifax

.

MONTREAL AND TORONTO -

•••

STOCK EXCHANGE

1 NORTH LA SALLE ST.
:

: :

CHICAGO

Associate Member of American fitock

40

Exch1.

Exchange Place, New -York 5,' N.-Yi.

Tel. WHitehall 4-8161

Tele. NY

for

•

Ottawa, Winnipeg, Calgary, Vancouver,

Goodbody & Co.

Chase Manhattan
BANK

Teletype NY 1-2270 VJ: 1
DIRECT WIRES TO

T

Expiring

Victoria

1i

.

Correspondent—Perching St Co»

The Canadian Bank of Commerce

Direct

THE

Southern

:

DEPARTMENT

MEMBERS NEW YORK
BRIDGEPORT,

1

Brokers

Inquiries Invited

CANADIAN

STREET

25 BROAD

Maintained

and

BeH Tel. of Canada

-

Exchange

7

-

New York

(Rights

Members

v

<£)QUthW€4t COMPANY

Teletype: NY 1-708

Rights

New York Stock Exchange
.

.

on

i

California Securities

TELETYPE NY 1-21*2

COaURNHAM

Dealer:

:

Inquiries Invited

EXCHANGES

Underwriter" •" "Distributor

•

San Diego, Santa Ana, Santa Monica

OF NEW YORK

Burnham and Company

30 BROAD ST., NY.

'

BOND DEPARTMENT

Offices in Claremont, Corona del Mar,

Encino, Glendale, Hollywood. Long Beach,

LETTER

BANK
MCMB£R6 NEW YORK

\

*

Members Pacific Coast Exchange

burnham

bond department

Bonds and Notes

Members New York Stock Exchange

BONDS

THE

Public Housing Agency,

€28 So. Hope Street, Los Angeles 17,
California

:

i

Lester, Ryons * Co.

m

CORN EXCHANGE




last

the

are

REGISTRATION—Underwriters, dealers and investors in corporate
a

STATE

IIAnover 2-11700

DALLAS

business

is concerned,
from the low

34

Institute

Municipal j

Securities—

telephone:

FIRST

page

be drawn.

and

■

-

the

Housing.

State and

can

general

tial,

Government,

Public

——

30

are

on

circum¬

serve Board Index was
143 in January, and- there is
strong evidence that 1959 is going to be the* best'year
ever, as measured by this index.
Thus, the decade

♦An

SECURITIES NOW IN
securities

in

D. S.

page

in

Continued

Continued

-

*An

I

as

provement

ible

signs, of internal weakness or upheaval in
the Soviet Union. On the contrary, the material

what conclusions

production

D. W. Michener

To fix Our posi-.
clearly and to assess the path ahead, it is
well ot glance back briefly at the road we have just
traveled.
It has been
downhill
until very recently
tion

see

Insofar

base

forecast rather than vague impressions.

such

tion and the position of banks
particular interest.

concrete:",

a

on

Under

activity, the Federal Treasury situa¬

tion about the future.
Economists,':
however, like to spell out explicitly
their assumptions about the state of William C. Freund

next.

Developments

expecta¬

some

come

stances, we do well to take a careful
look at the major areas of business

even

a

very

"normal,'* everyone is trying to
get his bearings and to see what is

Many people are consciously aware of the
fact that implicit in most of their
decisions, say to buy a ^house, a car, j
not

a

to

has become the occupation and pre¬
occupation of hundreds of economists,
thousands of businessmen, and mil¬

lions of

The trials of decline

recovery

satisfactions

the

'

economic

•

..

18 months have given the American econ¬
of the sharpest and shortest periods of business

ex-

fortunes, indeed

our
our

Our

*

•

The' past

keenly curious about

about

great part of

vis¬

no

unemployment

our

are so

pectations

Russia.

are

as

and

our

his journey confirmed his
relaxation in the Communist

offensive is imminent and that there

econ¬

jnormal level.

Gazing

travels

reserve and liquidity
overly free to expand. He sees price
increase and housing decline occurring later this year.
Mr. Michener attributes drastic changes in interest rate*
to tendency, than would otherwise be the
case, to antici¬
pate Fed's policy and to move with, or even ahead, of it

position

decline

apparently unshakeable
the whole world under

recent

a more

the course of future events.

back much

reached

upward though commercial bank

explains why human beings

impressed with what they have
seen and what
they have found to be the skillful
imperialism which characterizes the planning and
The programs of the Kremlin. One of these, the
facile Adlai E. Stevenson, now presents to the
public through the medium of the New York
"Times," a-brief account of some of the conclu¬
sions

com¬

against 1957.

to date, the

recovery

bank credit from the government and business continuing

•

A number of prominent citizens of this country
have of late visited, the Soviet Union, and have

.

1958

to date, with industrial production and demands for

year

All of us are deeply Involved with what the future
has in store, for nearly every decision we make has at
its roots some assumption about the future. I think this

<>

'

over

as

ease.

The economist envisages 1959 will be most prosperous

have not made real progress and

inflationary dangers

the domination of the Kremlin.

come

of

pace

we

■-

of

funds in 1959

new

pared to increase of $5.3 billion in 1958

number

a

and nonlikelihood that the Fed will shift to credit

omist believes

inclined

.1

Higher money rates can be expected, bank economist
opines, with business improving at a satisfactory rate

$34 billion increase in GNP and further
tightening in interest rates for 1959, Prudential econ¬

very

that the Russians have made in

Economist, The Chase Manhattan Bank, New York City

Predicting

at the time to take this boast of the world's most

ress

By DWIGHT W. MICHENER*

Economist, Prudential Insurance Company of America
and Adjunct Associate Professor of
Finance, NYU

a

J^from the United States that his grandchilden

powerful dictator

Price 50 Cents a Copy

The Business Outlook

We

Comrade

ago,

Business Agiira:p»«»~~

1

As
•

7, N. Y., Thursday, March 5, 1959

r

,

■rr::

Wr!

New York

1-702-3*«

2

The Commercial and

(1078)

Financial

Chronicle

.

t

For Banks,

The

Brokers, Dealers only

35

Over

•

which, each week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

geared

Lockheed

f,

Nationwide Private Wire

'/aitKl' Other

principal Exchanges

Lockheed Aircraft

of Los Angeles Office of
Harris, Upham & ..Co. (Page 2).

stars"

"Electra"

ing

Teletype NY 1-40

BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Wires

to Principal

in

sales

1959

Cities

one

history, !
analyst
k h

c

isn't

the

d
George V. Honeycutt

flying

Electra,
Electra

the

Let's

American Furniture

e e

cle's"

the

rea¬

selected

have

I

Lockheed."
of

some

the
Air¬

Lockheed

of

craft

Life Insurance Co. of Va.

at

stock

common

Basiett Furniture Industrie!

flying

is

look

why

sons

Corporation as "The Secu¬
rity I Like Best" for the "Chroni¬
First

Commonwealth Natural Gas

STRADER and COMPANY, Inc.
LYNCHBI KG, VA.

of

established

TWX LY 77

Wire to New

ion that

SECURITIES

Prospectus

BOSTON

on

its pres¬

airliners are faster
and
more
glamorous
than the
turboprops, they are also a great
deal more costly in every way—
and only on the long hops can
their speed be utilized. The Elec¬
tra is designed for 400-mile-an-

MUTUAL

*

in

Lockheed

position. It is my opin¬
they decided four
years ago
to build a turboprop
airliner, they made a very farreaching decision, which should
be very profitable in the future.
when

While

OF

the

ent strong

■msf.

FUND

all,

management
team headed by Robert and Courtlandt Gross is "tops" in a very
rugged and competitive business.
Its
vision
and
experience
has

York City

—5-2527—

Private

Forum this time.

Request

schedules

hour
a

to

rc>

airline

KELLER BROTHERS

runs

is

S.
under 300 miles,

present

are

It

three-

over

day

U.

and 87% are under 500 miles.

CO., INC*

C J

all

of

operator.

that

note

fourths

is considered

and

medium-range

well

GENERAL DISTRIBUTORS

jet

Pre

production

-

million

ZERO COURT STREET, BOSTON 9, MASS.

(Corner of Washintjton St.)

been

Telephone Richmond 2-2530

four

the

on

of

$50

have

all

costs

Electra

written-off

over
the
past
Commercial sales in
1959
should
climb
to
approxi¬
mately $275 million, more than
double the 1958 total, and will
come
almost entirely from de¬
livery of the Electra. Right now

years.

Lockheed

Electras

has

orders

which

California Western

duced

States Life Ins. Co.

for

163

being

are

pro¬

cently stated

A

at

rate

a

spokesman

of

for

two

a

week.

Lockheed

re¬

that they feel they
will sell at least 350 of the planes
airlines and has estimated the

to

commercial sales life of the Elec¬
tra

to

years.

from

be

three

to

seven

In addition to Eastern and

American

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

Airlines, deliveries are
being made to Braniff, National
and Western, as well as three for¬
eign carriers which are: CathayPacific, Ansett ANA of Australia,
and Trans-Australia Airlines.

Although Lockheed's 1958 net
earnings haven't been released,
they are expected to be between
$18
million
and, $19
million,
slightly more than $3.00 a share;
'This
compares
with
approxi¬
mately $16 million, or $2.76 a
.

Walter C.

Gorey Co.

Russ Building, San Francisco 4

.

share in 1957.
YUkon 6-2332

Tele. SF 1611 & 1012

been
and

Wire

System—John

C.

Legg

Company, Baltimore & N.

Troster,

&

Y. C.

Singer & Co., 2V. Y. C.




,

estimated
a

of

in 1959

first

at

$925

few months ago,

Browne,
dent

Sales in 1958 have

Lockheed's

million,
Dudley E.

Vice-Presi¬

Finance, estimated that
they expect sales for the

time

to

exceed

the

billion-

dollar mark.

Lockheed

is

also

world's

the

on

stated:

"Lo

LD 39

mSjsUi —Q——

i

—

Lockheed

Steiner, Rouse & Co.
Members New York Stock

Exchange
Exchange
10 Rector St., Now York 9, N. Y.

-

,

Members American stock

Pacific* Finance
which

good

has

HAnover 2-0700

Corporation,
be

to

proven

very

a

heed.

Mobile, Ala,
Direct wires

The stock

fastest

and

,

which

high¬

not

does

appear

IAPANESE

a

dependable and

and historically1 Lockheed
has paid dividends averaging 39%

these

factors

the

—

of New
■

next few

supersonic

Jf

years

are

outlook.

C-130

the

Air

"(Hercules"

transport.
The C-130 turboprop
transport, while accounting for a
percentage of sales than the
F-104, is much less sensitive to
changing technology.
Missile sales in 1959 should
for

count

35%

submarine

and

fired

from

earnings

tion

-

£.

}. j

•

'

o

.

Ltd.

;

h

'

Opportunities Unlimited

in

'\V:

IN JAPAN

Monthly Stock

our

Digest, and our other reports
that give you a pretty clear
picture of the Japanese ^
economy as a whole.
;'r V

;

of

Inter¬

an

Nomura Securities Co., Ltd!
61 Broadway, New York 6,
Telephone: BOwling Green
This

is not

an

N.Y.

9-0137

offer or solicitation for

orders for any

particular securities

provide
attractive

medium

long

c

grow

even

of

gram, new
and
increased

and

due

the

to

ambitious*

long-range
diversification pro¬
product development

growth

foreign

manufac¬

v

Harris
a

-

Intertype

BOENNING &
Established

CO.; ;

1914

1529 Walnut Street
115

Broadway
N. Y.

New York 6,

CO 7-1200

turing and marketing activities,
as

Keyes Fibre Co.

vigor¬

ously

This weapon, in conjunc¬
tion with the "Discoverer" series

Stouffer Corp.

on

more

Henry J. Low

Grinnell Corp.

should
now

-

(Advanced Research Projects
Agency) gives Lockheed two of
the nation's six highest priority
missile projects.

m-

opera¬

tions
from

ARPA

o

Continuing Interest in

Fischer & Porter Inc.

gains.

e

pany's

under

A

for

term

-

Capital
T h

water.

large satellites for the

"

type Corpora¬

ac¬

volume,
and are expected to rise in im¬
portance to the company until by
1960
they
should
account
for
approximately 40% of total sales.
The top headline-maker is the Po¬
laris, a solid-fuel IRBM (Inter¬
mediate Range Ballistic Missile)
which is being developed for the
Navy. The Polaris is carried by

■

of

111 Broadway,N.Y. 6COrtlandH-5W0

Write for

Harris

total

of

■

common

shares

lower

York, Inc.

Tokyo, Japan

present fiscal year ending
June 30, 1959, and over the com¬
ing years the

Force

*

Yamaichi Securities Co.,

LOW

for, higher

.

;?/-

Company

Brokers & Investment Bankers

the

which I have just mentioned, and

write

Affiliate

the .'r In view of the greatly; improved

Starfighter,

F-104

•

.

considerable opportunity for cap¬
ital enhancement.
*.
J.

or

Securities

stock of Lockheed Aircraft offers

HENRY

..

Yamaichi

two

the

over

Call

.

information y-'Xv

current

?

,

Manager, Institutional Research Dept.
military aircraft on Gude, Winmill & Co., New York City
Lockheed's production line that ;:
Members, New York Stock Exchange
seem
likely
to
generate
sales
Harris-lntertype Corporation
comparable to those of the Electra
The

v■,

For

U. S. Air Force.

to the

Philadelphia 2, Pa.
LO 8-0900
ATT Teletype PH 30
-

formed

was

result of the merger of Har-

ris-Seybold Company and Inter¬
airplane which will go
type Corporation iri June, 1957.
production this year is Lock¬
It is one of the largest manufac¬
heed's Jetstar utility plane which
turers of graphic arts equipmeiit:
is a ten-passenger, 600-mile-an-,
hour long-range jet which wilt including offset lithographic
presses,
rotary
letterpresses,
be built in Marietta, Georgia.
multi
color
magazine
presses,
At the present time, 'Lockheed
is competing hard for a contract typesetting machinery and matrices,., .power^paper cutters, and:1
to
build "
earlyplans';
which would be iiighi-speea idif lithographic plates and chemicals?
Furthermore the company is also
riers for advanced electronic and,
one
of
the
major suppliers of
communications
systems.
The
radio broadcasting and communi¬
company has finished designs for
cations
equipments transmitters :
a proposed
plane, designated the
Another

^OVJR

into

-

CL-410, which is being evaluated-

the

Air

The design
calls for an Electra fuselage, with
150 foot wings :used on the, Starliner
long-range
Constellations;
plus a large amount of electronic
gear.
This will be a turboprop,
using engines of approximately,
the same horsepower as those now
being used on the Hercules.
by

Force.

,

I

,

won't attempt to give all the

plus factors in the Lockheed pic¬
ture, but they have one goodsized

investment

that

should

be

mentioned, i. e., they own 25% of
is

?

ally

all

;?!

STOCKS

over¬

est-flying combat plane, the F-104. of net income since 1948.
Starfighter, which is faster than
As of Jan. 9, 1959, there were
most missiles.
In addition to a
6,321,040 shares of common stock
large backlog with our Air Force,
outstanding.
On that date the
on Feb. 6, 1959, the West German
funded debt amounted to $58,103,Government announced the suc¬
000, of; which $28,103,000 were
cessful completion of negotiations
3% % ; subordinated .> debentures,
to buy 96 F-104's to be manufac¬
due May 1, 1980, which are con¬
tured
by Lockheed's
California vertible - into. stock at
$24.27 a
Division and another 200 or more •
share through April 30, 1965.
to
be
built in Germany under
:
It seems * to me that based on
license.
This will be an impor¬
tant piece of business for Lock¬
heed, at it would strengthen the
possibility of additional foreign
orders, and heighten the" prospects
of selling further F-104 versions

branch office* *

our

split two-for-one

was

Jan.
9, 1959, and is selling,
currently at approximately $30.00
per share.
This would indicate a
times earnings ratio of ten-to-one,

production',

in

to

,

on

,

>

NY 1-1557

Now Orleans, La. - Birmingham, Ala

of income for Lock¬

source

r

'

.

_

of

Manager

*

,

Nine out of ten U. S. jet

Lockheed

expected to
high¬

has

Trading Interest In

are

hit their

est in

is ~ the

Low;

Institutional Dept., Gude, Winmill & Co.,- New York City.

(Page 2).

Electra-type anti-subma¬
plane for the Navy. They
have
pre - production
contracts
totaling $18 million for this plane;
and expect their first production
contract some time this year. An¬
witness

J.

4V.

uninterrupted
production
sirice' priced. On an adjusted basis, the
stock in 1958 sold as high as 34%
1948, the longest run for any jet
and
as
low
as
19Vs. Currently,,
in U. S. history.
;'"4v their dividend rate is
$1.20 annu¬

Lock¬

As

heed's

York 5

/.

pilots have received their train¬
ing in Lockheed's 600-mile-anhour
T-33
which
has
been
in

•

ber, 1958.

Member

American Stock Exchange

Private

Pntimhf

Corporation-

Intertype

-

Henry

last P2V

an

trainer.

deliverin
Octo¬

the

when

rine

other

..

airliner it beg a n

Established 1920

WOrth 4-2300

of
an

mmercial

c o

Corporation
120 Broadway, New

to

on

well; the Electra be¬

as

ing the new
turboprop

New Yorit Hanseatic

hooked

has

but

that

Harris

witness

as

Neptune patrol plane is completed
in 1960, it will have had a pro¬
duction life of 15 years. This air¬
by

only

"hitched its wagon to a couple

Try "HANSEATIC"

Associate

Louisiana Securities

Corporation-

ager

plane is scheduled to be replaced

Corporation

Lockheed Aircraft has not

you

fact

the

Harris, Upham & Co.
*31etoih§£& 'NeW Yoirfc,!$tock Exchange

System

'

Aircraft

'

manufacturer,

proven

~;,»GEQr<GE*¥. HONEYCUTT
':**■* Co«ManVger,'Los Angeles Office

when

Alabama &

George V. Honeycutt, Co-Man¬

riCHm articles contained in this forum are not intended to be, nor
^0, i«re0m©yto bo regarded, as an offer to sell the securities discussed.)
;

for service

Rfady toserve you

.< •-

•

Participants and

Their Selections

Large Trading Department

•

■

This Week's
Forum

In the investment and

experience

years

in Over-the-Counter

1959

,4

l

'

Security I Like Best §

A continuous forum in

Try "HANSEATIC"
•

Thursday, March

.

.

f

the

total

outstanding

stock

-

of

and

.

products.
Harris-Seybold Division of
Harris-lntertype rrianufactures an
extensive

line

of' offset

litho¬

graphic. presses. Numbering some
20^; standard; models, this consti¬
tutes the largest and most comT
plete line in the graphic arts
equipment industry. About 75%
commercial

all

offset

"

I

-T
i

presently

United

States

Over-the-Counter

Quotation Sendees
for 46 Years

for

National (dotation Boreal
Incerperated
Established 1913

46 Front Street
CHICAGO

Continued

on

;

presses,

throughout
the
printing
of
multi-colored advertising pieces,
greeting cards/ calendars, maps*
books, labels, cartons and many

used

-A

other electronic

The

of

A.

page

33

;

New York4,N.Y.
SAN

PHANUBWO

Volume

189

Number

5826

.

.

.

The Commercial and Financial Chronicle

3

(1079)

-s.-

INDEX
&S.

-:'r. Articles and News

Shoit Distance Tf an spot tation

Page
I

The

Business

Outlook—Dwight

W.

Michener

«TD OOKFWf :

_______Cover

By EUGENE VAN CLEEF
Business

Member of Department of Geography and Business Organization
The Ohio State University
.
.;\A.
keep a sharp lookout on the imminent
impact of helicopter's displacement of fixed-wing aircraft for
,_short distance transportation. Professor Van Cleef; discerns
impact on industry's and firm's, heretofore, advantageous

,g,f

:

'

.

Investors

t
*

•„

.

.

:

^

Credit

Trend—William

Transportation—Eugene

,

advised to

are

and

C.

Freund

___Cover

TALL STORY

Displacement of Fixed-Wing Planes for Short Distance

♦

..

Van

It's

Cleef

,

;

Cotton

Textiles—Ira

U.

Cobleigh

location and

g

.all

due

costs

shift of business, and

upon

on

reduction in

;

over-

5

packing, reduced inventories, :lower
handling costs and elimination of warehousing. In view of

'

»

Replacing Our Export Policy With U. S. Investments

r.

.

V'^Europe—Irvin F. Westheimer..-

*••

Jlatest

developments in gas-turbine-powered machine*,, the ;
:;V;
author's examination based on present experience points up

^

.

helicopter air freight and

&U

■

passenger

potentials involved.^ He

helicopters and outlines why

r

:.Seymour E. Harris
t

Vv.„ /

^

'•*(.

>

.

j' •''!

Where

■

:

1

.

Air.freight service is certain in cast while sensing some -of ;1>tftew
^the near future to affect the phys- things that have 'happened was*-?,'°™r
leal distribution of industries, and still well short ofrthe mark.; The
L Foreign Trade
;

.

the

value

of

current

locations,

of
course,
wasriot
mentioned, for at that time it was '

ponets

m'

business*!

lead ers./A

;

"fAKealistic
the probable future long
-v-

-

these

during
difficult

past

businessman

to

30

it

years

toward

old 500 mile

olution.,-

-

how

understand

be

can

:

....

the

Dr. E. Van Cleef

industrial

'

-

of

core

miles

the

is

American
miles

is

nation."

located

the

Market."

located

"Within
Great

500

North

"Within

half

500

the

future

our

Its

economy.

nation."

Both the passenger

| plane and the freight plane
made

the

mile

500

have

circle

just

about obsolete.

And yet responsible heads of all manner of indus-r

tries

as

well

those

as

who

buy
their stocks and bonds appear to

be unconcerned..
The

old

^

fashioned

mile

500

or

the

gard to
ality in

helicopter's

and potentialities

crease

tentous.

As

are

por-

planes increase both

their

;

.

carrying capacity and their
speed, not only will the 500 mile
circle lose all its former signifiwill

;
•

«.

the

but

cance

be

circle's

stretched

at

diameter

least

seven

times in length giving the enlarged circle continental and even

port

The Authority's

predicts

that

by

1970

intercontinental characteristics,

This

a-con-,

get mail and goods and people

^

in

I

fast-moving commerce." This fore-

will

frr
Business Man's Bookshelf
;

have

For many years we

specialized in

8
8

Singer, Bean

York

City, with eight or
suburban routes reaching
75 miles, will take care
of that great city's traffic.;. Altb-

,

Activity...

&

mackie,

Funds

46

News About Banks and Bankers

out 30 to

Observations—A.

20

...

Wilfred

May

Direct Wires to

Governments

the

helicopter,

new

a

.

.

f

carry

N

-

as

early

d

k

Members

Our

-as

Reporter's Report

Public

Securities/....,..

Utility

Railroad

44

32

Securities

Western Gold &

16

25 BROAD

>

,

Prospective

~

Securities

Stock

Exchange

ST.. NEW YORK

Boston

.

.

.

.

4

N

Chicago

Best

Twice

Glens Falls

Permachem

Corp.

5

48

Weekly

Reentered as secona-class matter Febru¬
ary

25,

1942,

at

post

HERBERT D. SEIBERT, Editor &

DANA

SEIBERT,

Subscription

,

N. Y.

REctor 2-9570 to 9576

Publisher

President

Thursday, March

5,

office

at

Nev

Dominion

of

Canada,

Other

statistical issue — market quotation
corporation news, bank clearings.
and
city news.
etc.).
-

records,

Offices. .136

HI.

South

Rates

Subscriptions In United States,
U.
Possessions, Territories
and Members
Pan-American Union, $65.00 per year,
$68.00

per

$72.00 per year.

S
ol

lr

year

>

m V. FMNKEl & CO.
INCORPORATED

.

39 BROADWAY. NEW YORK I

1959

Every Thursday (general news and ad¬
vertising issue) and every Monday (com-

3,

the

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

DANA COMPANY, Publishers

Park Place, New York 7,

■Other

Basic Atomfcft

Company

I

Reg. U. S. Patent Office

WILLIAM

Reeves Soundcraf t

.

Copyrlght 1959 by William B. Dana

CHRONICLE

FINANCIAL

'

TELETYPE NY 1-5

Worcester

Yonkers Raceway

2

Washington and You

state

Schenectady

Alaska Oil & Mineral

16

The State of Trade and Industry

Other Countries,

Y.

i

33

...

and You—By Wallace Streete...^

The Security I Like

Chicago




43

Corner

Salesman's

The Market

plete

si

Offerings.1

Security

Uranium

38

-

PREFERRED STOCKS

TELEPHONE HAnover 24300

Nashville

in Registration

Securities Now

Newark

p01ts °t New port ana, JNewarK,f.
Continued on page 30;

York

Chicago

27

,

The COMMERCIAL and

New

Cleveland

-:

between the air-

Y

Los Angeles

Dallas

San Francisco

4

Philadelphia
Our Reporter on

Y.;

Teletype NY 1-1825 & 14844

-

gether, three route systems are,.
suggested,. (1) a short stage;for*
intercity ^traffic with an average

40 Exchange Place, N.

HA 2-9000
Mutual

inc.

45

more

Spencer Trask & Co.
Albany

Copeland Refrigerator

31
___i

Indications of Current Business

that

& Betts

Thomas
28

Authority calculates that * about J
nine intercity routes within a ra-. 3
dius of 40 to 175 miles of central

;

.

_1_

^

..

15

25

f

1__

c

22

WILLIAM B.

*

■

•

Washington Ahead of the News—Carlisle Bargeron

Published

-

/■'

v

From

-

have

■,

■.

official of

but will do

we

- -vv

,;-v

•

Einzig: "British Investors' Dilemma".___

tinuous business in freight. When 1960; will
air

i:

-

■

Dealer-Broker Investment Recommendations

.

the

Cover
v-

■■

,

„.

'

we

■■

Coming Events in the Investment Field

'

;

;>

Bank and Insurance Stocks-

shuttle service) stage with 10 mile"
^an air transport company reported stops. The Authority predicts that
in the Magazine of Business, "All by- 1975 a total of-6,732,000 per^long-distance passenger' hauling sons will be carried, of whom 1,will be by airplane; all short dis-' 746,000 will be intercity travelers.
1
tancd passenger hauling will be In
$he field of package cargo,
by motor bus. Railroads will carry transport, the Authority estimates .
I no passengers

,

Pacific Uranium
,•

_

.

years ago an

City

Pantasote

See It (Editorial)

As We

the f

means

Only 30

Lake

26

practicable than now. The heli-(
copter can take its place. The Port -

New

1160

Basic Atomics

the;.:

job in at least one-half the time *
required by rail, and for a fare
of only 6.5 cents to 7.5 cents per

mile.

JCY

Regular Features

helicopter will be making regular
intercity flights as a common form';;
of transportation and will do

4-4970

17

_

Concept for

Depreciation Reserves (Letter to Editor)____

re-

manufacturers, whole— distance of 45 miles between stops,;
/salers, and the larger retailers (2) a suburban stage with 20 mile"'
4-must alter their sights.
**
* stops, and (3) an aerocab (airport
j

Teletype:

24

_

City Stock Exch.

Exchange PL, Jersey City
DIgby

1II____

Clarence II. Haines Suggests New Accounting

airplane increases' its use for short
intercity runs will become less

•.

E.;. Woodbridge

Leading New York Economists to Debate Monetary Policy.

As the speed of the fixed-wing

tion's total freight, carried by air
is still small but its rate of in-

1

Salt

practic-

„Js fast becoming a myth. To be
sure,
the percentage of the na.

Members Salt Lake

;

most persons

•^'rightful" trade territory of cities
-

J.F.ReiIly&Co.,Inc.

Direct wires to Denver &

period still viewed by
as that of the fixed-" *

a

16

_i__

Long-Term Investor Looks at Chemical Industry
—Richard

elusions merit much wider publicity than they received at the
time, particularly as we approach

wing plane.

the

INSTRUMENTS
14

con-

historic past.
•

A

the threshold of reality with re-

of

AUTOMATION

13

.

—Louis J. Paradiso___

•

Authority:;-

populaThese city
boasts and many more like them
could
well be
relegated to the
tion

RACING ASSN.

So,uU<m for pro- Pomp,ete Recover*
Rails'

Effect of Eisenhower's Budget on National Income and Product

.

investigated, several years ago,
the potentialities of the helicopter
in

CHARLESTOWN

12

•—Roger. W. Babson_i____

rev¬

'

'

-

The Port of New York

^hre the
•*it

BASIC ATOMICS

11

rf ■----------—
and Foreign Aid," and Role of

Lack of Defense From Missiles Makes Cold War Continue

Cites N. Y. Port Authority Data

fin 500 miles
-

PERMACHEM CORP.

..

is

any

cliches. "Withbest
markets and
here also is

>

—John E. Kusik

complacent

communication

the

reveals 'the

;

'

„■>.

'

erature still

1

•

Savings Banks

:

*

.

..

-

-

Commerce lit¬

,

V:

'

.

in Attacking

^"3 .<• —Daniel P; Loomis_—
__'
carrier, with the -• fixed-fV
f
•' ; • <
v;
is Business or Labor Responsible for Low Output and Inflation
wing plane serving as a supplier/
as

.1

f In the light of what has happened

trading off
Chamber of.

10
V-.-

...

.

distance
.

,

Future Inflation

Export-Import Bank—Samuel- C/ Waugh;

if lighter than^irclThadlS

impressed:;
many

-

STERLING OIL
OF OKLAHOMA

helicopter,

Qddly enough

rj this fact seems
hot yet to have />:

.

"

Telephone: WHitehall 4-6551

9

_

__.___l.__

Banks) Err

pww

'

:

.<!

•

Commercial

Dept.*

STREET, NEW YORK

6

;

____

.

a

we

obsoletes!

.

.

_

Beane

V)*£•'^Treating the Real Problems Now Instead of
-v.; <

C

r

J

1

;

WALL

ir.V4'"''

significant cost reductions

more

under way.

are

-—Robert M. MacRae_

■•'feH'As I..See the Market—Alpheus C.

,?■

early subsidization of rails to that of pioneering

compares

;

6

Early 1959: A Good Time to Invest in Money

buy

Obsolete Securities

99

.

believe, but

'

in

< -

less

to

to

4

;

Ilow Can Inflation Be Stopped?—E. Sherman Adams

.

..

;

hard

3

honestly do
.Picking

La

Salle

St.,

(Telephone STate 2-0613).

Bank

and

Publications

Quotation

Record

-

—

Monthly

$45.00 per year -(Foreign Postage extra
Note—On

the

rate

foreign

account

of

of

the

exchange,

subscriptions

and

fluctuations

remittances

NY

Direct

5-3960

1-4040
Wtr*

& 404k
to

li

for

advertisements

must be' made fn New York funds.

WHitehall

Teletype

PHILADELPHIA

4

The Commercial and, Financial Chronicle

(1080)

the

Picking Cotton Textiles
IRA

DR.

By

U.

CORLEIGH

A

conjecture

the

to

as

For

(fiscal year ends Sep¬
30th) Burlington earned

certain

textile company equities.

industry,

general
profitability.
attempt

Some

had

to

substantial
reached

have

a

inroads,
point of

marginal utility due to technologi¬

and

processing.

Fall to nudge
prices upward

cal advances in cotton

but conditions

produced in 1958 were given resin

within the in-

finishes, making them "wash and
wear"
(and doing no doubt a

us

About

and

try,
of

entire

20%

disservice

making

companies

the

goods

cotton

the

of

considerable

the hesitant
mood

to

luck

should

BUR

those

to

electric iron-

ers). And one company researched
a
structural
change
in
cotton

econ¬

omy last year,
prevented any

Ira

U.

Cobleigh

giving it

qualities competi¬
best synthetics. So

many

By A. WILFRED MAY
NEW

or

earn

better and possibly return
regular 80
cent
dividend

a

rate.

The

around

sells

common

currently

An attractive alter¬

16%.

Foreign

made

seem

made

during the

d

of

$1.50

competition nate
entry into this picture is
has been substantially curbed by found in the $37.1 million issue of
a
voluntary Japanese export
4%% debentures due Oct. 1, 1975
quota.
Synthetic fibers, which and convertible into common at

in

Summer

the worst is over, and bet¬

days lie ahead. The improved
mill
efficiency
of
the
newer
Southern units has already been
mentioned.

of fabrics and

was

many,

8,519,691

the

outstanding, listed
trading
under
the
This year with any

symbol BUR.

ter

of

shares

NYSE,

on

sort

Spring of 1958 the cotton
quite renowned
for
its
cyclical
characteristics,
reached a postwar low in price
In the

textile

ejach

on

common

of

Observations

1958

$1.21

attractiveness

current

sales in the order of $650 million.
tember

Enterprise Economist

business with annual

vast

a

The bonds sell around par to

18.

yield 4.25%, and the proximity of
the common to conversion parity
suggests
that
these
"converts"
might perform in a sprightly mar¬
ket fashion.

You

too dear

pay

not asked to

are

premium for the

a

conversion privilege here.
textiles

is

name

Mills

Cone

Corp.,

incorporated
does

64 years ago. Cone
gross business of around

a

million.

It has paid divi¬
dends without interruption since
1914, the present rate being 80
cents. For 1958, Cone will prob¬

$165

BUSINESS-BAITERS

Traditionally
acteristic

chief

the

distinguishing

political

parties

has

char¬

two

our

their

been

differing attitude toward business
—the

Demo¬

crats

role

ters

persecu

the

its

GOP

with

the

given
this

n

now

as¬

GOP

the case of
determining

the

life

whether

While the

bill

clean

a

in

1939,

to

take

it

is

industry

was

health

of

on

deemed; time

another

look.

Also

subject of inquiry will be the
adequacy of state regulation.

vic¬

ff

'■

i;.

■

implied

tory
at

in

the

sumption that
a

life field. Fol¬

the
TNEC
theme,
the
inquisitors will inquire

business.

the

election

i g

and then the

their huge control of assets gives
thenr unwarranted
power
over

concept

p a

and marine insurance, will
get into the fire and casualty

power;

carried
1952

tion
soon

companies

defenders.

through

by Senator O'Mahoney,
sub-committee, which has
already completed studies of avia¬

into the concentration of economic

staunch

This

Judiciary Committee.

Chaired

lowing
present

of

and

Senate

this

area

acting

the

cam

Another old and honored
in

Thursday, March 5, 1959

.

.

Burlington

business.

carpet

does

.

least

A.

fa¬

a

Wilfred

May

tive with the
THE JET AND THE FUTURE
vorable
"cli¬
getting under way till the while the rule of King Cotton
OF THE AIR LINES
mate"
for
business.
But, alas,
last quarter.
may have been a bit shaky, he
j-S'J 'v
President Eisenhower's
"Repub¬
The position of our air trans¬
For years the industry has suf¬ has not so far, at least, been de¬
ably show 15% or so per share licans
Moderne"
have
come
fered chronically from over-ca¬ throned.
port
industry
has
lately
been
less than the $1.24 reported in
through as top .performers in the
pacity, and from the existence of
showing
marked
improvement.
Finally, lower Government sup¬ 1957 due
partly to start-up costs harassing role.
But since this has chiefly resulted
many small marginal mills that
port prices for cotton, recently of a new
plant. A per share fig¬
had to run at 90% or better to established,
Department of Justice activities from a rise in domestic fares
have pointed to a ure of
perhaps $1.35 looks possi¬ have run the
make money; and even then often
gamut from the which is in the process of attrition
declining trend in the price of ble for 1959>,
Company has for
slashed prices to keep up their raw cotton which all mills will
presently re-highlighted anti- from continually rising costs, the
years
majored
in
denims
mid
cash flow.
Time, and a number welcome.
monopoly suit aaginst JDu Pont- future will importantly depend on
corduroys.
CONE
sells
around General
of mergers in the past decade have
Motors; to the series of the impact of the introduction of
On the labor front, increases of
15%, listed NYSE.
three actions, civil and criminal
considerably reduced over-capac¬ about 7% have been accorded in
jet-equipped carriers.
Dan River Mills, Inc., tradition¬
(with
ity
indictment),
brought
(operating
cotton
spindles recent
Hence the actual results of the
weeks,
quite
generally
ally a large manufacturer of dyed against RCA-NBC by Attorney
have decreased 10% since 1949); throughout
the industry; which
progressive strides in this field
and
finished
cottons has, since Generals Brownell and
and a major migration of mills to means that some 305,000 mill op¬
Rogers; to already made by British Overseas
1955, expanded by acquisition of the present stirrings of the De¬
the South has improved operating eratives will be
getting about ten
Airways are highly significant.
Iselin-Jefferson, a factoring and partment against the proposed
efficiency
and
profit
margins, cents an hour more in their pay
This is specifically seen in the
textile distributing company, and
through reduced taxes and labor envelopes.
Morgan-Guaranty Trust merger. effect of the
Instead of being a
introduction, on the
of
Alabama
Mills.
Ban
River
The
Justice
costs, and operation of more mod¬ disquieting event, this pay raise
Department
has fourth of October last, of the
features a line of wrinkle-resist¬ been
ern plants.
moving to strengthen its pure-jet Comet
has proved
a
stimulant.
Many
4, on B.O.A.C.'s
ant
seersuckers, cords and bed powers in various directions. Only
Over-capacity has not been the mills have stabilized output on
bookings, both on its Monarch
sheets.
Per share earnings have
this week anti-trust chief Victor
only problem, however. Internal the basis of a five day week, and
luxury
service
flown
by
the
fluctuated but little in the past
Hansen together with the Federal
competition was quite had enough, posted modest increases (5% to
Comet, and also on the carrier's
three years (around $1.20). Some Trade Commission is
but the rise of synthetics and the 8%) in prices along the line. And
urging Con¬ other trans-Atlantic services oper¬
improvement might be looked for
threats and inroads of low-priced sales have picked up briskly.
gress to give the Attorney Gen¬
A
ating from New York, Boston,
this year, but probably no change eral the
power to demand busi¬
Japanese and Indian imports put number of mills already report a
Chicago, Detroit and San Fran¬
in the 80 cent dividend.
At
15, ness records for use in the possible
further pressure on an already sales backlog for the second quar¬
cisco.
In
the
months
October
DML yields 5.33%.
preparation of a civil anti-trust
sorely
troubled
sector
of
the ter of the year and the demand
through January, the number of
Another
impressive and pro¬ suit.
economy.
And finally the price shows more vigor and depth than
Monarch service
passengers
in¬
of raw cotton, propped up by the for
many
months.
The
broad gressive company is J. P. Stevens
The booming mutual fund in¬ creased
by 47%—which increase
bewildering working of the crop snap-back from the 1957-58 reces¬ & Co., Inc. which, like Burlington, dustry has not escaped the "at¬ is
directly
attributable to
the
support system shepherded by our sion, rising per capita income, the produces not only cotton goods tention" of the Republican-con- introduction of the
pure-jet
Department of Agriculture, pre¬ current spurt in consumer buying but synthetic and wool fibers as trolled
SEC.
The
Commission Comet, since this is now the only
vented the industry from access generally, together with the re- well.
Cotton, however, accounts has
devised
extensive
surveys
real

recovery

from

to

cheap raw material.
All of which resulted in an out¬

put by

our

cotton mills last

year

of 8,850,000,000
linear yards of
goods—7% below 1957—and most
companies will report a substan¬
tial decline in net profits from
1957 figures.

assertion

Why

be

a

considered

by

sensibly

minded share buyers. Well, there
is no visible stampede to take on
textile shares but there
valid

reasons

to

are

believe

—

all

these

would

suggest

a

textile

resurgence

some

that, for

for

about 45% of total business.
Capitalization of STN is quite
simple, composed of $57.6 million
in long term debt and 4,243,820

industry

of the Better Textiles

Perhaps the best place to start

dreary recital of
industrial debits you might won¬
der why
cotton textiles should
now

com¬

of the
and
a shares of common, now selling at
cautious look at some of the more 29, with an indicated $1.50 divi¬
entrenched equities therein.
dend, producing a current yield
of
5.17%.
Stevens
is
unique
now

cotton

Buy Them Now?

such

traditional

the

cotton fabrics

Some

After

of

fort, drape, coolness and style of

is with Burlington Industries, Inc.,

largest
textile
manufacturer,
a
major not only in cotton but in
wool
and
synthetics
as
well.
Burlington has absorbed a num¬
ber of companies, its latest acqui¬
sition being Sydney Blumenthal
&

Co.

through which it entered

textiles in that its 1958 per
share net (fiscal year ends Oct.
31) was higher than in any of the
three
preceding
years.
STN
earned $2.60 last year, ample cov¬
erage for its dividend. Dividends
have ben paid continuously since
among

1935.

Wo

are

pleased

to announce that

textiles

<

-

associated witli

now

,

Manager of

Institutional and

us

store

maker

chain.

of

cotton

textile

weeks, and
issues

Syndicate Departments

Advisers

Investment

the

United

shares

Mer¬

touched

probably

move

in

tions
to

indicated for this

are

held

be

terstate

before

and

the

Committee

Senate

on

Securities

Committee

of

upon

and Currency.

in

the

Congress,

the sub-committee
and

considerable

their

commons.

the

here,

371 Seventh Avenue

New York 1, N. Y.

BO 9-3010

PE 6-3344

Philadelphia Office
Room 831,

Western Savings Fund Building, Broad & Chestnut Sts.




New

Demo¬

on

Anti-Trust

the

of

Comet.

De

Luxe

first class passengers on the
York to London run have

increased by 82%, and ail classes
from the United States by 49%.
The reason for these rises is two¬

fold.

B.O.A.C.
received
publicity as the first
carrier to operate pure-jet pas¬
senger flights across the Atlantic
First,

world-wide

and to

some

extent became known

"The Jet Airline."

Second, the
as had

introduction of the Comets

the Brittanias contributed to sub¬

stantially

transatlantic

increased

seating capacity.
evidence

Further
stimulus

to

travel

of

the

great

given by

British carrier's jet is seen in

We maintain active

Continued

on

-page

trading markets in:

Atlas

of

Sewing Centers, Inc.

Stevens

Markets, Inc.

Common & Preferred

for

these

Colonial Stores, Inc.
Established 1919

Named Director
Robert L.

Huffines, Jr. has been

elected to

of Roberts

R. s. Dickson & Company

the board of directors

Company, manufactur¬

ers

Mr.

of textile

Huffines is chairman of the

board

of

Worth

closed-end

specializing
securities.

INCORPORATED

Member Midwest Stock Exchange

spinning machinery.

Fund,

investment

Inc.,

a

company
in textile and related

CHARLOTTE

Atlanta

Columbia,

the

the

fact that the number of eastbound

wiU

leverage

Some

duction
and

Monopoly legislation of the

might cotton to.

you

during this period since the intro¬

as

relatively high,
ratios
low, and
capitalizations pro¬

of

American Stock Exchange
*

the

Banking

on

\

Street

In¬

Commerce
Committee and then by the Sub-

to higher ground

vide

shares,

52 Wall

year,

House

Foreign

in 1959. Yields are

Members

New York 5, N. Y.

Act.

Moreover, all classes of service
shown
increased
bookings

have

recent

of the leading

some

some

New York Stock Exchange

to
of

Hearings on a pending bill em¬
bodying the SEC's recommenda¬

price/earnings

Van Alstyne, Noel & Co.

Investment

the

Companies Act of 1940, and
clarify regulatory provisions

towels,

18% with an
dividend.
There has been a strong tone in

as

under

powers

enforcement

its

cratic
controlled, the insurance
industry is faced with a series of
broad-scale investigations similar
whose common sells around 65
to the philosophy underlying the
and pays $3;
and United Mer¬ New Deal's historic TNEC
(Tem¬
chants and Manufacturers, a quite
porary National Economic Com¬
diversified company which also
mittee) hearings of the late 1930's.
operates the well known Robert These come under the
aegis of

famous

chants sells around

our

strengthen

designed

might want

you

indicated $1
is

to

to look into would include Cannon

Hall

JOHN C. CURRAN

aircraft used for that service.

recommendations

with

And

Other

Mills,

March 2,1959

■

NEW YORK

Greenville

Direct Wire to AU.

'

Raleigh
Offices

/

-

CHICAGO

Richmond

^

48

.

Volume 189

The Commercial and Financial Chronicle

Number 5826

How Can Inflation Be

these programs either by taxation
or else by
inflation ~ and these

Stopped?

are
the only aternatives—is
squarely faced.

By DR. E. SHERMAN ADAMS *

One

Deputy Manager in Charge of Economic Policy Commission
American

Bankers Association, New York

to

Instead, after analyzing the nature of
inflation, Dr. Adams prescribes what should be done to
protect today's "48-cent dollar" from further attrition so that,
thereby, the incentive to save is strengthened. The economist

in the nation reached a new post recession
high in January and early February, the Federal Reserve Bank
,of St. Louis observes m the February issue of its "Monthly
•.Review."

"

.

January.

Employment

i between

December

conditions

and

January.

interest rates remained at virtually the same level as in
January,
'.% +
*
■+"
+ \V
,v
Reflecting demand from business and Government, loans
and investments at commercial banks in the nation expanded in

?and

.

v

In the four months through January 1959 they
increased more than seasonally, rising an estimated $5 billion
(3%). In the corresponding period a year ago they rose $1.3 bil¬
lion (0.8%). The average rate of increase for the like periods in
1955 through 1958 was 1.6%.

early February.

action without
What

this

be

worth

worth

million.
However, member bank borrowings were substantially
below the levels maintained from late 1955 through 1957.

ther

bank

needs

is

a

good 48-cent dollar—one that will

expanded, excess reserves of member banks
declined from an average of $570 million last September to $490
million during January, and their borrowings from the Federal
Reserve Banks rose from an average of $475 million to $555
As

to "fear

recourse

country

credit

tomorrow

it

is

How is this

today.

what

to

be

achieved?
How

can

prevent,

Bank

value

It

clearings in the week ended Feb. 28 will show an in¬

is

only

Preliminary figures compiled" w ithin the !|
by the "Chronicle" based upon telegraphic advices from the /1, past few years
the
principal cities of the country, indicate that for'the week clearings ' t h at
crease

%

The

telegraphic advices of the "Chronicle" shows that the
four leading money centers compare as follows for week ended
Feb. 28:
>C
•+ + -,.
•

A

m

e

r

Our

to

face

i can

1958

1959

%

$11,173,895,813 $11,027,917,279
1,093.235,925
1,052,286,226

York

Chicago.

+1.3
+3.9

946,000,000

+1.5

960,000,000

Philadelphia

611,915,120

_

Farmers Income at Record

655,368,233

—6.6

High in 1958

1

The Agriculture Department reports that farm income per
.person last year rose to a new record of $1,068, being 9% better
than the previous 1951 peak. Total realized net farm income, the
cash remaining after farmers pay their expenses, totaled $13,100,-

.

000,000 in 1958, a 21% increase from 1957. In late years there
a decline in farm population and consequently a larger
spread of total income among fewer farmers has helped to raise
their per capita income.

has been
i

*

this
w

tails.

problem,

be to

Dr. C. S. Adams

v>1°med

o

-<.

—

.

■'

.•

^

construction activity declined as is usual in February,
but the $3.5 billion total of work put in place was 12% above the
New

previous February record set in 1958, according to preliminary
estimates prepared jointly by the U. S. Departments of Labor and
Commerce. For the first two months of 1959, expenditures totaled
more than $7.1 billion — an all-time high for the January-Feb¬
ruary period.
+''V;+ + + + /
; •, ++
+ + •+

,

,

_

•

Private

'

spending for new construction in January and Feb¬
ruary was- up 9% this year from 1958 to a record $5.1 billion,
primarily because of a 30% expansion in outlays for new dwelling
units (to $2.2 billion). The increase in residential construction,
coupled with strength shown by many other kinds of private work,
more than offset the 35%
drop from 1958 in expenditures for
private industrial plant. Expenditures for new industrial plants
Continued

on

page

the

35

The

only

lead to inflation but
seriously
interfere j with
economic growth.
Over a period of years, we

The Wage-Cost-Price Spiral

of

World War II and

1940's

the
we

on

blamed the

Korean War for the price rise of
1950-51.
For the additional in¬

not

best

solution

would

liquidate Comrade Khrush¬

chev and

inflation

Company but this does

appear

to be feasible at the

moment and may not be

time.

Consequently,

for

The

wage-cost-price spiral is
perhaps even more formidable.'

Looking back, it is evident that
this has been

a

major inflation¬

ary force in our economy not
in recent years but during
war

and

has

now

postwar

years as well.
It
become ingrained in our
life.
The fact that it

economic

has

occurred

some

lost

must

ing

how?

This

Just

what

are

the

we

should

will-obviously take

a

so

little of its momentum dur¬

the
1958 recession,
what a tough problem we
against.

lot

of doing.
The pressures for pub¬
lic spending are very great and

be doing
now
and over the years the pressures for tax reduction
a ' budgetary
surplus
ahead to prevent the virus of in¬ whenever
flation from sapping the strength shows its head, are just as pow¬
and

that

learn the art of

since

stop it, we can.
But

we

impeding the growth of the

erful.

r

Well, it hasn't. We

can now see

that if inflation is to be halted,
something must be done directly
to
stop this spiral. We would
much

prefer, of course, to have
business and labor leaders do this
themselves.

However,
if
they
cannot, then, since this is a prob¬
that vitally affects the wel¬
Before trying to answer this,
let us look briefly at the nature ingly adept at concocting appeal¬ fare of all Americans, we have
plans for spending
public no choice but to tackle it our¬
of the inflation problem as it ex¬ ing
funds. Most of these proposals are selves.
ists today in the United States.
J
strongly backed by groups that
The basic reason why this spi¬

American economy?

In recent years, indeed, legisla¬
seem to have become increas¬

tors

lem

„

*

Causes o°f Inflation

.

will benefit from them and oppo¬
sition is unorganized and weak.

ral is so difficult to deal With is
that it has become imbedded in
them are for socially the
is creeping inflation. Whether and
functioning of our free econ¬
desirable purposes—for education,
how long this form of inflation
omy.
Union officials are under
housing, airports, redevelopment,
can be held to a creep once it has
strong compulsion to seek suband the like. Unfortunately, how¬
become
chronic, are debatable.
Continued on page 28
For the foreseeable future, how¬ ever, the matter of paying for

The threat at present, of course,

Many

of

ever, we are not in danger of a
vast monetary expansion.
What
does concern
■h:

us

persistently

a

MERGERS?

is the prospect of

rising

trend

prices and living costs over
riod of years,

of

Companies seeking expansion in relat¬
ed fields or diversification in unfamiliar

-"J/*

h'

fields—and

companies seeking

—find Stroud's
an

a

buyer

professional experience
'

^

can

keep

a

worse.

Economists
the

causes

of

are

this

busy

debating

trend.

There

the "demand-pull'

school and
the "cost-push" school and in be¬
tween are integrated schools with
some pull and some push.
There
are

secret, too.

prices" and counter - talk about
"administered wages."
Monetary
economists are having a ball an¬
alyzing the role of nonbank lend¬
ers—known in the trade as nonbank financial intermediaries.

'

STROUD
&
COMPANY,

INCORPORATED

1123 South Broad St.,
t20

Phila. 9-PE 5-7330

Broadway, N.Y. 5 • WO 4-8400
PITTSBURGH




•

ALLENTOWN

•

*

And

have

plenty of non-economists
gotten into the act.
Some

contend

that

rising prices, result

from profiteering by monopolistic
industries.

Others

blame

demands by monopolistic

LANCASTER

•An address by Dr. Adams
New
of

wage

unions.

before the

Haven Chapter, American Institute
Banking, New Haven, Conn., Feb. 21,

1959.

Opportunities
in Convertible Bonds

plus the possibility

is much talk about "administered

invaluable asset,
We

something

Proiit

a pe¬

that this might eventually lead to

r.;"

just
the

shows
gracious and nonare up
inflationary living with a huge
then, however, we have no war budget and high taxes.
Many of us used to hope that
to blame, only ourselves.
A Federal budget the size of
We can
monetary and fiscal policies might
now see
that we are in danger ours today is
inflationary even suffice to achieve price stability.
of accepting inflation as a way when it is in balance.
During pe¬ We hoped that when the infla¬
of life.
riods
of
prosperity,
therefore, tionary pressures arising from
This can be avoided, of course. what is needed is not merely to World War II and the Korean War
Inflation is man-made.
If we balance the budget but to achieve had spent their force, the wageare
sufficiently
determined
to substantial budgetary surpluses.
cost-price spiral would disappear.
that

flation

things
right

New Construction in Jan.-Feb. at Record Peak
j

+.

not

would

Problem

magnitude of the Federal budget
and the high level of taxes it en¬

to

up

Fiscal

fiscal

problem is much
tougher than it has ever been be¬
fore in our history because of the

•

;

another.

or

this
babel, there is
nevertheless
widespread
agree¬

Our

people have
weekly clearings will be 3.5% above those of the corresponding*
week last year.
Qpr preliminary totals I stand at $21,872,522,561, really begun,
at
long, last,
against $21,140,537,057 for the same week in 1958.
%

Boston

kind

one

Despite

compared with a year ago.

;for all cities of the United States for which it is possible to obtain

New

now.

is

right now, for example.
Clearly, however, we should not
come to rely upon an
inflationary
budget policy as a permanent
prop to our economy. This would
case

flationary factors in our economy should use fiscal policy as
a
today are (1) the financial opera¬ means of offsetting, not reinforc¬
tions of the Federal Government ing, inflationary pressures in the
and (2) the wage-cost-price spiral. private sectors of our
economy.
Let us consider what we are up We obviously have a
long way to
.against in these two areas.
go to achieve this goal.

dollar?

can

be at any particular time—as
the

Many deplore governmental poli¬
cies of

never votes on a

never

of combating or avoiding unem¬
ployment and of stimulating eco¬
nomic growth.
This will often
cause
disagreement as
to
just
what our budget policy should

among informed observers
that two of the most virulent in¬

erosion

the

of

Clearings Up 3.5%

start

we

overall

Congressional
committees
jealous of their prerogatives with
respect to appropriation bills.
Another difficulty is that many
people regard Federal fiscal poli¬
cies as being an important means

ment
-

we

fur¬

of the Ameri¬

Nationwide Bank

psychology"—if

en¬

this situation meet firm resistance

(1) Federal budget's size is inflationary even when
balanced; (2) gold convertibility or automization of big
business, labor and government, or chancing a crash program
would not be helpful; (3) once the
public understands the
problem, their indignation would check inflationary wage set¬
tlements and business pricing practices; and
(4) that reliance
on the kind of
public education, which he prescribes, can
change our apathy toward "man-made inflation" to determined

showed some improvement
Prices continued to be stable,

Congress

from

believes:

•

.

Industrial production continued upward, and increased sales,
both at the retail and manufacturers' level, supported its growth in

is that

budget
picture.
budget
formulates, a
real
budget policy. Efforts to remedy
and

our

Economic activity

the

Congress

existing conditions.

■i

reason

not

acts appropriation bills with little
consideration of their relationship

City

Bankers' economist expresses concern about ethics involved
in the appeal for savings as a curb to
price inflation under

v

5

(1081)

Example: Brunswick-Balke Convertibles Up72 % in 3 Months
investors can profit from selected convertible
just issued by R.H.M. Bond Review,
copies of which are available to a
complete charted record of the
interested readers free on request
entire bond market, but is a com¬
As this unusual report shows,
plete investment advisory service

New York, N.Y.—How

bonds is shown in new report

at

any

moment in the market covering

aspect of con¬
which can keep
date on new opportu¬
nities as they develop.
Unique, two-color conversion-

certain convertible bonds will be vertible

their investment val¬
ues as straight bonds and close
to conversion parity. They pre¬
sent, therefore, far less risk than
selling

near

every

bonds

you up to
1

ratio charts

on

each of the 190

stocks, yet any strong convertible bonds now trading
upward movement in the com¬ show how you can spot the prof¬
mon must show substantial prof¬ itable
buying opportunities. Send
its in the bonds due to their con¬
today for the fascinating story of
version privileges.
Convertible Bond opportunities.

common

You

cannot

opportunities
traded

watch

in

convertible

R.H.M. Associates

190

maturing
actively

bonds,

This

timely report is

and

but Write

without

for

any

yours free
obligation.

"Convertible

Bond

do it for Opportunities," Dept.
CF-3
you. Our new publication, the R.H.M; Associates, 220 Firth
RJI.M. Bond Review is not only Avenue, New York 1, N Y.
can

6

The Commercial and Financial Chronicle

(1082)

1

Israel

investment-banking

Cincinnati

delivers

head

a

•

Britain

Great

country-by-

/•.//] /•'; V;- /

can

be

Thursday, March 5, 1959

.

.

satisfied.

litical

While in the fall of
ernment

> -

use

entering into licensing agreements.

believed

po¬

1£57 the gov-

it

)>

to

necessary

"credit'squeeze"

a

her"

situation.>

and ...economic

has

exports

£v:

v

'

...

w

halted., By

was

Shares in. excess of 15 times earnings is the borderline
between /'gambling" and ''intelligent speculation" according to
Seattle writer who probes vulnerabilities said to be underneath

s

.

in

'<Ar

Seattle, Washington."

:

changed substantially when -}
during the closing months of 1958 /
a
dramatic revival took place in
Britain's export trade. The change
began in September when.the de-;
cline

:u

popularly heralded strength" factors. Mr.- MacRae calls atten- Z-'ih*ration to 1929 prices for electric utility -shares, and other.exampies, to shov/ tremendous subsequent industry growth nsed not
mean still
higher stock prices. He also compares price trend
developments in late 1920s with today's, and concludes best
'values are in bonds—as a class—yielding 5% taxable and
3V2 to 4% tax free.

fight

to

■nl
•'•3

7*

against inflationary pressure jane
; to protect the pound* the situation

■

't

'

To Invest in Money
-

t

analysis of Western Europe's attractiveness to Ameri¬
investor, and counsels overcoming European declining m-

'

't

By ROBERT M. MacRAE

' '

with the present trend of

manufactured goods by erecting branch plants
Mr. Westheimer cites
data showing good dividend returns of American investments
in European common market; advises our future lies in chang- ^
ing our traditional export policy, at least in so far as manu¬
factured goods are concerned, by participating in European,
industrialization; and hopes impasse between British Free r
Trade Zone idea and ECM will be resolved so Europe can
economically progress.
or

;

Britain

Great

*

""

.

$800

.some

'

:|77.7

'

terest in U. S.

u

to

million.

Cincinnati, Ohio

country
can

amounted

'

Early; 1959: A Good Time

tal, public and private and in¬
cluding payments on the West
German restitution obligation to

fiy IRVIN F. WESTHEIMER
Westheimer & Company,

.

million.
capi¬

The net outflow of German

Replacing Oar Export Policy
With U. S. Investments in Europe
>

of nearly S200

amount

an

■

,

1

..

.

.

^

^

;;

..

.

.

.

...

.

...

.

f

(

Speculation-has been a part of factor. Nineteen-twenty-nine acitt
way of life almost since the curately foresaw the coming "elecof 1 %% over 1957. On New Year's
dawn of time. Much of what we trical
age" yet many electrical
Eve the "Financial Times" indus¬
The
countries of Western cess of the 3%% loan offered for
today; consider tc be ./only sound, utility company - shares reached I
trial shares index rose 1.8 points 3
Europe present an economy of subscription from June 17 to July
business prac¬
prices in 1929 that have never]
to 225.5, the highest point in his- '
remarkable strength and stability 12, 1958, evidenced the return of
tice? is, in -a,
again been attained even tboughj
after
the
elimination
of
some the
people's
confidence.
Total tory. The previous top was 223.9 .
the fantastic growth in
way,
specula¬
electrip.
weak
subscriptions reached 320,000,000,- points on July 21, 1955. The cur¬
spots
tion, for to
power consumption has gone be-,
000 francs ($762,000,000) of which rency measures taken at the end/
during 1958. yond the fondest - hopes of 1929 ]
of last year with the] aim' to make] su'ccessfiiUy
70,000,000,000 francs came from
The sound¬
/investors. More recently, in 1946,
carry on
a
the sale of gold.
ness
It was a most the pound fully convertible, have normal busi¬
of
West
the public enthusiasm for com¬
again
the ' dominant',
unusual sight to see Frenchmen confirmed
European
ness /enter-;
mercial aviation correctly foretold 7
role of sterling in international,'
carrying suitcases full of hoarded
economy is
? the
prise require;,
coming
"air transportation]
trade. The pound still is the
priri-, a lot.
well illus¬
gold, to the banks to sell against
$
of "good
age'' which has nearly eliminated]'
international currency, fi-,
loan subscription. It can be men¬ cipal
trated by the
gUressing" 011
railroad passenger transportation.
fact that the
tioned, too, that the recent de¬ nancing half of the world,'s trade.. what the liiYet, today, after this new industry;,
valuation of the franc by 17%%
countries of
ture has
i has
in
proven its position beyond artyt
Italy
has
not
resulted in strikes for
this area were
'•? doubt, ■) most, air
s tore.
Th e
transportati6|i
higher wages nor social or politi- •
At the beginning of this year- difference be¬
only slightly
i shares are selling for much l4^&.
cal unrest.
affected
by
Italy faced a change of govern-i tween
i/than
1946
specuprices. A successful]
the nineteen
Robert M. MacRac
There were some fears that with ment.
Signor Amintore/ Fanfanij 1 at ion a nd
stock purchase, therefore, requires^
fifty - eight
General De Gaulle at the helm, v who became Prime Minister and
/; as a basic qualification that the
gambling is
American re¬
French nationalism might awaken Minister of Foreign Affairs after- not
always too clear but generally shares be bought for less than
cession.
In
Irvin F. Westheimer
and would have deteriorating ef- the general election of May, 1958,
speculation assumes a fair amount their relatively near term future',
other times,
■-/. fects on relations with other coun- was compelled to resign. The rea¬ of calculated risk whereas
gam- worth.
To pay prices well in ex-,
particularly after World War I, tries, in particular West Germany, sons were more personal «than]
bling is almost pure "chance." cess of 15 times present earning#
a
sharp wind blowing from our These fears are today dispelled., political. In fact, Signor Fanfani
Presently, there appears to be de- or at most the next year's en¬
country would turn into a tempest After the meetings between De. did not have many friends even 7
veloping an
undue
amount
oi: pected earnings may be the pointin Europe.
This time, however, Gaulle
ancl
Dr.
Adenauer,
the in his own, the Christian -Demo-gambling in our security markets, where "gambling" takes over from
industrial production and foreign; German
Chancellor, German- cratic Party. It was felt that he/
The present Bull Market dates "intelligent speculation."
];]]/•/
trade remain on a high level al- French relations are more cordial exercised
too
m uch
personal- back to
1949:; and though - there
Unfortunately, gambling can be
though in most countries of West-, than ever before and in some dip- power as had Mussolini, ' being'
have been several sharp "correcprofitable—for awhile. Once, how-i
ern Europe the pace of
progress * lomatic. quarters in Europe there President of the Council, Foreign
tions" during this long period, the
evel% caution and good judgment
in 1958 was a bit slower thari in is
General
much
talk
of
a
Paris-Bonn Minister and
Secretary >'■
persistence of this uptrend has, is cast aside, it makes little differ-'
1957 or
1956.
7' v of his party v He was ako-criti¬
According to the "axis."
especially during 1958, been wide- ence how many successful "gamBulletin of the U. N. Economic
cized by the fight wing of nis party
ly acknowledged in "Main Street" bies" are taken, sooner or later;
Commission for Europe, the value
for having made to many con- ;
West Germany
as
well
as
"Wall
Street."
The wili come the fatal mistake andof European exports during the
cessions to the Social democrats, ;
Despite his 83 years, Dr. Adethat
"could
have
been ajj. the previous winnings will be
third quarter of 1958 was only nauer has so far shown no incli- the left wing partner in his coali-► profits
made" are so enticing in hindbanded
over
in "tribute to the
2% under the level of 1957.
If nation to leave the political scene./ tion cabinet and even played with
sight that there seems to have de- Gods of chance " *
1 J"*
we consider the decline in
prices Political conditions in West Ger- the idea of enlarging the narrow ,
veloped a belief that a Utopia lies
for many raw materials, it is safe
The . sueceSsful, ; launching
by
many
remain
sound
and
the basis of his coalition government. ahead for
anyone .who will transto say that the volume of Euro- shadow of the Berlin
Russia o£ its .Sputnik" in Octoquestion has*
The crisis is now over as a new;
pean
exports in 1953 exceeded disturbed
neither
political
nor> President of the Council has been
this high optimism is not coming ber, 1957, probably did more to
that of the good year 1957.
unbaianCe the 1958 Federal budget
economic
optimism.
Even. the, found in the person of Antonio in
large measure from the so- unbalance tneduou recieiai ouugct
than any other one factor.
It is reasonable to expect that socialist
The
opposition must admit Segni, member of the Christian.
there

November

was

an

increase

7

our

-

i

—

-

.

,

-

..

,

,•

f? ^fS ^.or. sh.afes. Actually
called

informed •investors

but

the further economic development

Democrats

of Western

Minister. Segni will probably pre- * new
legions of American investors
side over a government exclusive-/ who would have considered stock

Europe will

go

today that the economic policy of.
slower liberalism
and free enterprise,

than during the period of 1950-57
when
Europe's
Gross
National
Product.
(GNP)
increased" 88%

compared to

49%.

our

France

The political situation in France
and Western

Sf1-„e
De

of

success

Gaulle.

during

Europe has improved

much

been

1950-57
sounder

period

has

than politiproduction in-

industrial

juent
the

changes

Algerian

effects^ on the French
In
particular

uation.

At

on

the

had

economy,

the monetary sitbeginning of 1958

the picture was rather dark.
and

and

bad

Gold

currency reserves dwindled
in order to secure the nec-

Prime

rather

from

the

activities

oi- the

Two main forces have, built

-

The

the

West German

on

rate

of

in

1953

was

In

increase

slower than in 1957.

some

sec-

tors

very

production

sets
of

doubled

almost

1957.

There

some weaker spots in the
coal and textile industries.

are

steel,
The

coal situation with 13 million tons

stockpile

on

inspires

some

-

up

-

re-/

economy

firm basis

a

of governments, 100,000 TV

rebellion

former

dle
of
the
road,"
friendly
to
this highly optimistic feeling. One
Italy's western allies. Segni is an]
is
the
belief
that
the
rapidly
although: experienced statesman of moder¬ growing
American
population
ate views.
;

ences.

industrial
production
was
satisfactory. - In the automocreasing,
even
booming, unem- bile industry production reached
ployment almost nonexistent. But the million mark against 790,000
the political
instability, the fre- cars in 1957. An output of 1,-

cally,

a

s^' bnHonYTreasury deficit that
Zt
eln
j/„„
j

has'^followed

t

has

done

more

to

American .confidence

undermine

vigorously supported by the
in its own financial future than
Chancellor and Dr. Ludwig Er- ly formed by members of the •
purchases a highly risky operation
hard, his very capable Minister Christian Democrats leaving '' to only a few years ago and at a the most hopeful Russian propa¬
of Economy, has been correct and the other parties the responsibil¬ time when stocks were available gandist could have wished. . To ]a
nation of people that uses credit
that in West Germany there is no ity to sustain or overthrow his
at much under today's prices.
in almost every phase of its daily
room
for any socialistic experi- government which will be "mid¬

General mains

Economically, France

the

and

con-

7 >'
guarantees
an
ever
increasing
ease, the recent govern-) market for
industry./The other
mental crisis has had little effect'
factor is inflation. Though on the
,

In any

Italy's

on

which

remain

on

a

activities

sound

basis.

During the past year, Italy's in¬
dustrial progress was not as hectic
as

surface there may be some justification for these beliefs, experience
has

shown

factors

are

in the

and

well

that

highly ..obvious

seldom reliable specu-

preceding years of 1957 lative
guideposts.
1956.
Business, domestic as. two
as

foreign

and indications

will continue

months.

example

cern.

economic

was

are

satisfactory

that this trends

widely

others

Beneath

admitted

less-obvious

derstood which

these
factors are

and

could

less

rudely

and

existence
that

is

-

to

a

government

sorely pressed

by

a

eign poWer than to create this
wideSpread distrust in the Americall currency's future value.
Thi^
financial debacle may have been

triggered off by the "Sputnik" but
tIie dangerous position was really
the

years of ill-i.
practice tot-

of many

result

advised

financial

un-

wbich

un

accept the blame.

-

during the following dermine a lot of
today's optimism.
In several sectors,
for Some of these less favorable are
automobile production,
the declining profit margins show-

fan-/

tastically
large
short-term na-'
tional debt) no more serious blow
could bave been struck by a fbr-

political Washington

7

Treasury's

must)
r,X4

#

Financing Problem#

,,

worth its-hire and
the results of last year exceeded]
Foreign trade was good with a
ing up in almost every industrial that hire, even in an atmosphere
expectations. Automobile produc¬
total value of DM 63,000,000,000 tion with
operation, increasing unemploy-. 0f SOund economic background, is
405,000 units was 15%
borrow
from
the
($16,200,000,000) leaving Germany higher than in 1957. 40% of this ment, foreign competition and the worth more than the 2%% ofinability of our government to fered by the U. S.'Treasury on
production was
exported
com¬
finance the formidable and ambi- so much of its
—3
postwar financing.1
pared with 30% in 1957.
tious programs which too many
credTts .}y.
whkh
intai?ues' 500,000,000).
Trade
with, the
However, in a false attempt ta
totaled more than Tjnitpd statp«? pxrppdpd p*nppfaItaly's reserve of gold and cur- / well intentioned
people now take lower the carrying costs of an
$600 million. Now, thanks to the ~nitecf bt!*tes exceeded expecta
JniitiVni r»nn-nif/tatter vLi H
tious thanks to the fact that the rency] exceeded $2,000,000,000 for; entirely for granted.
ever increasing national debt and
the first time in 1958 with an in¬
is

Money

?orher^nP^frvfFrW

iXnatfona0!

Pare^U^ontXhrlf"

Replacement
mentary

of
system

a

weak

by

a

parUa-

stronger

paternalistic
and
authoritative
government, the economic situaiinn
toon

has
has

At the

/!,

remained otrong.

chronic active trade and
substantially improved. payment balances hhve enabled
the German Government and
pri-

end of 1958 France's gold

more

"^sion had little effect upon
®£cHemLed
®

snh^ntiaiTv

find currency
fo

o^ToOWO^^,-

than

reserves

$1

amounted

billion,

a

vate
of

investors to

international

Of $360 million during the second

ain.

The

sort

of




sue-

practical

foreign

the

banking,

gain past reserved to France

fttalf of 1953.

The spectacular

enter

aid

in the

or

effect

field

Brit-

was

program

a

to

„

...

T

.

.

of $670,000,000 during theGambling vs. Intelligent
Although the trade balance
speculation/
remains passive, the balance of
Back
in
1929
there
was
the
payments is active thanks to about
"New Era" and much of the same
$450,000,000 received from tour¬
arguments made today were heard
ism.
15,000,000 foreign visitors
then. The population growth was
came
to Italy last year, among
given then, as now, as a guaranthem more than 800,000 Ameri¬
teed future market. In every year
cans.
The Municipal Council of
since 1929 the population did inRome has approved the building.
crease but the depression of 1932
Continued on page 26 to 1939 was no respecter of this
crease

year.

•

to assist the "vote-important borrower„ against the position o£ the

"saver," interest rates were artificially set far below money's true
worth.
The final realization of.
this

truth

was

realized

this

pastj£3.y

Fall when the newly issued U.

Government 3%% bonds fell over
10%
in value'in
a
matter of
months.

Since

then, the governnatibn

ment of the world's richest

has had

to

limit its financing to

,

Volume

189

Number

5826

.

.

The Commercial and Financial Chronicle

.

issues with the shortest of maturi¬
ties
mostly less than even one
—

Interest

year.

(1083)

these Bonds is Exempt

on

from

Federal Income Tax,

any

now or

7

hereafter

imposed, under the provisions of the United States Housing Act of 1937, as amended.

Reckless

government

spending

and

unwillingness of Washington
to face the nation with needed tax
increases

has

inflation.

It

created

is

the

fear

New Issues

of

February 27, 1959

strange, however,'

to

note that basic commodities—
those that would be most affected^

by

truly imminent

of

devalua-'

the

any

tion

lower

dollar—are

price today tban at
1950.

This vas

;

well

as

trueT rintemally. as

*

internationally4 Strange,

too, is it that

In

a

stock

prices

; „
r
' "
' .'
"In mmmiry, I am of the view that: *** A contract to

pay annual contributions entered Into by the PHA (Public
Housing Administration) In conformance with the pro¬
visions of the act (U. S. Housing Act of 1937, as amended)
Is valid and binding upon the United Statea, and that the

were,

"fear of inflation"

actual

existence

of

creasing inflation
causing investors
prices for

the

not

—

faith of the United States has been solemnly pledged to

rapidly in¬
today—that is
to
pay
high :
a

real

and

bearing obligations."

(parentheses not in originaI text)

estate

--many of which are not inflation"

inflation

is

their -losses; will
greater.

All

of

then

be

v

New

York and many other States

even

fS/

brings,

only

received

at0

spent

the

for

or

dollars

loss

a

will

^

Bankers Trust

surely

Principal and semi-annual interest payable, at the option of the holder, at the office of the Fiscal
-V Agent of the respective Public Agencies or at the office of the Alternate Paying Agent in the

Recommends Bonds;
I

Though 1959

f City, and State of New York or in the City of Chicago, Illinois except the New

destined to
"gross volume

seems

rather full

a

The Chase Manhattan Bank

,

that

ensue.

b£.

and Legal Investment, without

limitation as to amount of investment,for all National Banks
organized under the laws of the United States,

back the simple truth—value must

be

Agent. Coupon bonds in the denomination of $1,000, registerable
"

only

.

or as to

Guaranty Trust Company of New York

principal
both principal and interest, with the privilege of reconversion,
at the expense

creasing profit margins will make,

of the holder, into

coupon

as to

bonds.

The First National Bank of

present

estimates.
appear-

C. J. Devine & Co,

too; high

below, will constitute, 111 the
opinion of counsel valid and lcgally binding obligations of the respective local'Public Agen¬
cies/secured by a first pledge of annual contributions unconditionally payable pursuant to the

and

though the'/ "gambling
mirage" may carry these

profit

favorites to

risk1

of

against

even

success

today's

market

level,

Annual Contributions Contracts with the Public

higher levels, the'
seems
heavily,
buyer,
At
any

be

it

the

hmhs

Federal ^Government)

1929

or

when due.

there

'

*'

-

Housing Administration (an

of the

agency

which together with funds of the local agency actually
will be sufficient to pay the principal of and interest on the bonds
\

-A;

*

The United States Housing Act

and;a few of these are still to be
found today. As a class, though,
the best values today are in bonds
that are available at the lowest

Kidder, Peabody & Co.
Salomon Bros. & Hutzler

an amount,

V

.

-

-

;r

*

The

Philadelphia National Bank

!■

*

always

are

J.

Carl M. Loeb, Rhoades & Co.

issues that offer good values

1958,

in

available for such purpose,

of

some

.

Bonds, to be issued by>thc various public agencies listed

These

for; sound investment considera¬
tion

t

v.

Harris Trust and Savings Bank

Most,

*

Chicago

-

the, .final met earnings well below;
stocks,, therefore

Company

Chemical Corn Exchange Bank '

York

City Housing Authority bonds which will be payable only at the office of the Fiscal

•

year," there are sound reasons to
believe that the constantly de¬

ni#ny

v

Legal Investment for Commercial Banks, Savings Banks and Trust Funds in

forestalled

this

c

Bonds

3%% and

hedges at all. Therefore, if "they"
should see come to pass what they
"fear,'" they will lose having al¬
ready paid "too much." If this
radical

the payment of such contributions In the same terma Ita
faith has been pledged to the payment of its interest-

:☆

☆

,

stocks

opinion rendered to the President of the United
on May IS, 1933, the U. S. Attorney General stated

in part:

soaring
to then record heights. It is really
the

an

States

similar price trend.'
in the late 1920s even t

developed
while

$68,635,000

in

time-since

any

of 1937,

amended, solemnly pledges the faith

as

The First National Bank of

:of the United States to the payment of the annual contributions by

Z

,

the Public Housing Administration in accordance with the

'

Ladenburg, Thalmann & Co.

-

of the Annual Contributions Contracts.

terms

-

Oregon

W. II. Morton & Co,

prices in 20 years to yield nearly
taxable and 3 V2 % to 4% tax
/
\-5
''

Incorporated

5%

free.

The

is

business

present

,

still

far

,

from

LOCATION

recovery

complete

QF AUTHORITIES .AND AMOUNTS

and

SCALE 1

should it—as it well
could—prove
be false,' a stock market reac¬
tion of at least 100 to 150

points
fully possible. This is
pleasant thought to consider;
but the only real
pro.tecti.o 11;
Against such a development is to
would

|

Dick & Merle-Smith

Security-First National Bank

$7,505,000 National Capital, Washington, D, C. (1960-94)

be

I.os Angeles,

a

have

sold

one's

a

substantial

r

SCALE 2

This involves

the

risk

of

say

is not concerned

to

year

he must

have

year

or

price
some

$32,850,000 New York, N. Y. (1960-97)

$5,640,000 Augusta, Ga. (1960-99)

$5,200,000 Cincinnati, Ohio (1960-99)

-

$4,345,000 Savannah, Ga. (1960-93)

The

to

be

.

one

and

Kansas

seems

constant

Providence, R. I.

MATURITIES* AND YIELDS
■'*'

(Accrued Interest to be added)

Fidelity Union Trust Company

1959-1975 Maturities

—

Newark, N. J.,

de¬

mand

by government,
business
and people is "money."
Early 1959

'

All
Due

Issues

Due

.5,

.

All

All
Due

Issues

All

Issues

Issues

a

very

good

Due

W.

1964;

2.25%

1968

2.65%

1972

1965

2.35

1969

2.70

1973

2.90

2.05-

1966

2.45

1970

2.75

1974

2.95

1963

2.15 '

1967

2.55

1971

2.80

1975

3.00

,

1961

.

P.Keating With

Glickenhaus & Lembo

2.85%

1.90

1959-60

time. to

"invest, in money."

1.70%

1962

like

seems

City, Mo.

Industrial National Bank
"

con¬
*

in

City National Bank & Trust Cow

fluctuations;
rules of

commodity that

scarce

Seattle-First National Bank

in

duct to follow.
'

Dominick & Dominick

$5,815,000 Mobile, Ala. (1959-93)

he

interested

3*/2% Bonds

$7,280,000 St. Paul, Minn. (1960-99)

missing

Calif.

B. J. Van Ingen & Co. Inc.

SCALE 3

3y2% Bonds

v-V;.

of

part

holdings prior to the break.'

the future gains that may lie
ahead
but unless one-can
truly

:

Incorporated

3%% Bonds

to

not

Weeden & Co.

-

'

'

-

A. M. Kidder & Co., Inc.

Laidlaw & Co.

Mercantile-Safe Deposit and Trust Company
Baltimore, Md.

;

Filor, Ballard Firm

•

1976-1999 Maturities

National Bank of Westchester

/William P. Keating has become
with Filor, Bullard &

Due

Scale 1

Scale 2

Due

Scale 3

associated

Smyth, 26 Broadway, New
City, members of the New
Stock

Exchange,

as

their newly opened
department.

Scale 2

Scale 3

York

Scale 1

Scale 2

Scale 3

3.05

3.10

1981

3.15

3.20

3.25

1991-93 3.40

3.45

3.50

3.05

3.10

1982

,*3.20

3.25

3.30

1994

3.50

3.10

3.15

1995-99

3.50

3.50

•

3.10% 3.15% 3.20%

3.40

"

1979 3.05

fund

1983-84 3.25

3.30

3.35

3.35

The Peoples

National Bank

of Charlottesville, Va.

Third National Bank

3.40

In Nashville

Tuller & Zucker

"

With Stone & Webster
(Special to The Financial Chronicle)

.

.

Stone

&

Webster

Securities

(Note: Whete the yield and the coupon rate are

the

same,

the Bonds are offered at par.)

Pierce, Carrison, Wulbern, Inc.

"•

BOSTON, Mass. — Donald. tF/
Roche has become affiliated with
Cor¬

-

'

•

•

.

.

^

^

■

are

^

f

;

*.

^

.

•

(Special to Thk Financial Chronicle)

Descriptive Circular upon request

4

Joins Dean Witter

'

*'

t-

'
.

t

J. C. Wheat & Co.

and■
Baker, Watts & Co.
Federation Bank and Trust Company

Planning Corp.

can
„.

4

offered when, as and if issued and received by us and arc subject to prior sale
approval of legalityffu'itli respect to each issue, by recognized municipal bond counsel,

These Bonds

;

.

poration, 49 Federal Street.
He
Was formerly with North' Ameri¬

-

N. Y.

3.50

1978 3,05

of

White Plains,

3.35% 3.40% 3.45%

1980

1985-87 3.30

mutual

Due

1988-90

3.00% 3.05%

1977 3.00

York

manager

Scale 1

1976 3.00%

*( Includes

full information on Redemption Provisions>

National Bank of Commerce of Seattle

Tilney & Company

-

OAKLAND, Calif.—William D.
Dabney is now connected with
Dean Witter & Co.. 409 Fourteenth
Street.




-./

3

The Commercial and Financial Chronicle

(1084)

Topeka

Atchison,

Railway—Review in "Current

Santa Fe

&

Dealer-Broker Investment

Ilammermill
stocks.

Taper

and

Company

Hayden, Stone & Go.

selected lists of

some

A. U. Fox has become a

study of Dollar Averaging and reviews of the Building and
Construction and Railroad Industries.

Recommendations & Literature

Baltimore &

Ohio

Railroad Co.—Data—Qppenheimer,

pleased
send interested parties the. following literature t

circular
^

dd

data

are

de

Pont

Bath

on

Nemours

Iron

Co.,

&

Neu. &

Kerr

Maiden Lane, New

9

colleges and universities, on radiation instrument industry,
and discusses SalemBrosius, Inc.—Atomic development Se¬

to

Exchange,

,

Bache

to

as

List—Booklet

Selected

on

memoranda

New

fouy-selLhold—Bache & Co., 36 Wall Street, New York
Also available are two suggested portfolios and a

bulletin

on

Copper.

-

Base Metal Stock Index—Data on 15

•

West,^Toronto,
•

Wall

48

1 Wall Street, New York 5, N. Y.

General Telephone & Electronics
Bissell & Meeds, 120

interesting.

Great Universal

Great

Warehouse 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
considered favorites for 1959 and data on Daiichi Bussan,
Mitsubishi Shoji and Marubeni-Iida.

Halliburton

Kern

&

County

&

Well

Land

ment banking in

Balfour Namedfor

Co.,

Henry H. Balfour, ^senior part¬
in Orvis Brothers & Co., New

Corporation—Review—Laird,

Cementing

ner

York

Co.,

South Broad

123

an

Mr. Balfour's
is

State

—

Memorandum

—

Roosevelt &

Brown Bros. Harriman Add

Co.-Walker Mfg.—Analysis—Dean
on

(Special to The Financial Chronicle)

Witter

ST.

Also

issue

are

data

on

ABC-Paramount

and

Pabst

available

Also

&

National Steel

Chicago

61

Mar.

McDer-

:

^

*

—

ica annual

.

n

ieeting.at the Hilton

!t;

April 3, 1959 (New York City)
:
New York Security Dealers As¬

sociation

33rd

annual

at the Waldorf-Astoria.

:

Apr. 10,
,

;

Company—Repbrt-^chweiekart ^
' " "
> > « -:

Republic Natural Gas-^Repdrti-First California; Company, Inf
corporated, 300 Montgomery Street, San Fraiicisco 20, C^lif.

,

dinner

*

*

^

(Toronto,-Canada)

1959

Toronto Bond Traders Associaannual dinner at ?the King

1 tion

Bdward-Hotel.
29-30-May
Louis, Mo.)

April

i • rr?

1,

-

1959

(St;

:

St.

LdUis 'Municipal ^Dealers

Rose Marie Reid — Memorandum.--^ First ^Angeies- Corp., -8929 -*xWilshire Boulevard, Beverly-Hills, Calif.- ;
c
\ i. ; ;

:

Signode Steel Strapping Co.-^-Analysis—Blair & Co. Incorpo¬
rated, 20 Broad Street, New York 5, N. Y.
^

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

Super Food Services, Inc.—Memorandum—Wm. H. Tegtmeyer
& Co., 39 South La Salle Street, Chicago
3, 111.

•

New York 5, N. Y.
•

-

-

'

,

■

,

.

it

Tractor Supply Co.—Analysis—Loewi & Co.
Incorporated, 225
East Mason Street, Milwaukee 2, Wis.
Also available is a
memorandum




Insti¬

Hotel.

Memorandum—Freehling, Meyerhoff & Co.,

Salle Street, Chicago 3, 111.

Textron, Inc.—Analysis—Thomson & McKinnon, 11 Wall Street,

Teletype NY 376; 377; 378

session

*

'

Trinity Place, New York 6, N. Y.

annual

—

& Co.- 29' Broadway," Ndw York 6, NC Y;

-

(Philadelphia,

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

Corp.—Memorandum—Green, Ellis & Anderson,

vPuget Sound Pulp <& Timber

;

1959

22-27,

Seventh

Photon, Inc.—Memorandum—H. Hentz & Co., 72 Wall Street,
new York 5, n. y-. • • • --;•

(*) Operati%;Btilitie8

74

Field

tute of Investment Banking.

.......

HAnover 2-2100

Cor¬

thereto with

Pa.)

Pehnsalt Chemicals-^Review—Ira Haupt & Co., Ill Broadway,
New York 6, N. Y. Also available is a report on Combustion
Engineering Inc.
;
' :•

'

Members New }ork
Security Dealers Association

Investment

In

Western Life Insurance Co.
Analysis — Copley &
Company, Independence Building, Colorado Springs, Colo.

,-r

Truster, Singer & Co.

Research

prior

and

EVENTS

Incorpo¬

Co.—Analysis—Cruttenden, Podesta & Co., 209
Street, Chicago 4, 111.

National

.....

& Distribution

Counselors

Co.

formerly

was

COMING

Broadway, New York 6, N. Y.

120 South La

(b)i Natural Gas .Companies
Transmission, Production

with

.

Aircraft Corporation—Analysis—Peter P.
Co., 42 Broadway, New York 4, N. Y. *

Philips Lamps

i

connected

Edward D. Jones & Co,

South La Salle

.

■

now

Penaloza

de

Mr.

is

Brothers Harriman &

Brown

Chemical

John Morrell &

.

Motors—Analysis—Wm. C. Roney & Co., Buhl Build¬
^
:
r
r

•

LOUIS, Mo.—Eugene L. de

Penaloza

U. S. Plywood.

with

mott

Motors—Analysis—du Point, Homsey & Company, 31
Street, Boston 9, Mass.
>
;)

V—

the

to

the Alumni Council.

Data in current "Monthly Investment Letter"—

same

McDonnell

American

'

election

University's Board of Trus¬

poration

the

-■

fcS",

nomination, which
to

tantamount

Massey Ferguson Ltd.—Memorandum—Charles King & Co., 61
Broadway, New York 6, N. Y.

1, Wis.

■.

Association.

Alumni

tees, took place at the meeting of

Corp.

Company—Report—A. G. Becker & Co.
rated, 120. South La Salle Street, Chicago 3, 111.

American Marietta Company—Annual
report—American Mari¬
etta Company, Dept.

i

alumni trustee of Rutgers Uni¬

versity at the annual Midwinter
Alumni
Day
of
the
Rutgers

Street, Phila¬

Magnavox

Manufacturing Co. — Annual report — Share¬
holders Relations Dept., Allis-Chalmers
Manufacturing Co.,
1125 South 70th
Street, Milwaukee

i

brokerage house, has been
a five-year term as

nominated for

Co.—Memorandum—Wood¬

Pneumatic Tool Co.

Allis-Chalmers

j

r

Rutgers Trusloe

is a circular containing data on
Company, Olin Mathieson, John Morrell &
Company, Cudahy Packing Company, Lykes Bros. Steamship,
Grayson Robinson Stores, Borman Food Stores, Inc., Chicago

Corp.—Brochure—Troster, Singer &
Co., 74 Trinity Place, New York 16, N. Y.

Firm Tradingt Markets in.

the Far East with
J'.v* i}.

Swan, Culbertson & Fritz.

Gas

memorandum

a

—

Brewing.

Air Express International

■

Bank of New York and in invest¬

Co., 45 Montgomery Street, San Francisco 6, Calif.

Witco

,

,J-

Prior to that, he was en¬
gaged in commercial banking in
Japan with the First National City

Hayden, Stone & Co., 25 Broad Street, New York 4, N. Y.

OSO

\

;

many.

In

Exempt Bond Market—Bulletin—Park, Ryan, Inc., 70 Pine
Street, New York 5, N. Y.

ing, Detroit 26, Mich.

,

Inc.—Memorandum—Goodbody & Co., 115 Broad¬
New York 6, N. Y.

Link-Belt

Tax

American

Oil

Oil

available is

Bonds—Comparative figures—Vilas & Hickey,
Broadway, New York 4, N. Y.

Milk

Western

way,

Railroad Income

101 East Ontario Street,

Co.,

Kennametal

Bonds—Special Report on
request—R. H. M. Associates, Dept. CF-2, 220 Fifth Avenue,
New York 1, N. Y.

40,

,

,

-:-J

v

Gourd, 37 Wall Street, New York 5, N. Y.

Profit Opportunities in Convertible

11, 111.

;

—

Interstate Engineering

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

&

W.. Pressprich & >

f

a. U. Fox

-

partment in Washington and Ger¬

Carlson &
<

*

Treasuiy'De-"

Broadway, New York 5, N. Y.

Stores

cock, Hess, Moyer &
delphia 9, Pa.

Over-the-Counter Index—Folder showing an up-to-date com¬

Baker

(

Co.—Memorandum—Berry & Co.,
240 West Front Street, Plainfield, N. J.
Also available is a
memorandum on Haydu Electronic Products, Inc.

Japanese

Averages—Amott,
York 38, N. Y.

—

; (

Analysis — W. I. Carr, Sons & Co.,
Gresham House, Old Bread Street, London, E. C. 2, England.

Yamaichi Securities

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

Stock

Memorandum

Street, New York 5, N. Y.

New York.

150 Broadway, New

ated with the
United States

Corporation—Review—Reynolds & Co., 120 Broadway,
New York 5, N. Y. Also available is a report on Standard Oil
Company of Kentucky and Tennessee Corporation.

.

Inc.,

associ-

was

Ferro

Inflationary Spiral—Discussion—Shearson, Hammill & Co., 14
Wall Street, New York 5, N. Y. Also in the same circular is

&

.

During

pany.

Duffy Mott Co.—Memorandum—Bateman, Eichler & Co., 453
South Spring Street, Los Angeles 13, Calif.
;
V

Inflation Without Inflation?—Review—C. F. Childs and Com¬

Bond

{*

/

Ltd.—Analysis—McLeod, Young,
Weir & Company, Limited, 50 King Street, West, Toronto,
Ont., Canada.

Banks—Analysis—Leggat, Bell, Gouinlock Ltd., 414
James Street, West, Montreal, Canada.

Estate

Com-

World War II
he

Dominion Foundries and Steel

..

26

—

CoU^Memorandum—R;

Diamond. Alkali

Chartered

Real

,

Co., 2023 First Avenue, North, Birmingham 3, Ala.

Company, Inc., Dept. CHRON 3-5> 25 Broad
Street, New York 4, N. Y.
■
'

appear

•

America—Memorandum—Robert W. Baird &

of

Cosmopolitan Life Insurance Co.

B. Leonard &

list of electronics stocks which

Co.

.

Co., 110 East Wisconsin Avenue, Milwaukee 2, Wis.

Capital Gains in Stock of Life Insurance Companies—Analysis
covering 60 companies, and specific recommendations—Ralph

a

Company, Baltimore" 2, Md.

Controls

Scotia, 44 King Street, West, Toronto, Canada.

Japanese Stocks—Current Information

First Boston Corporation, 15 Broad Street, New York 5, N. Y.
Credit

;

Canada and the United States*—Study of population growth-

pany,

Thread

-

i'jRV.

Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
able is current Foreign Letter.

St.

HH

..

.

Commercial Credit Company—47th annual report—Commercial

—

Bank of Nova

1

Hampshire and A. E. SUley Manufacturing Co.

..;jf

urer-Seere-

tary, of t h-e
Am;e r.'i;can
.

V

"

Ontario, Canada.

Bnrnham View

»

Citizens & Southern National Bank—Card memorandum—The

companiesb-rDraper Dobie

Company Limited, 25 Adelaide; Street,

and
-

'

-

'

'

dent-Treas-

f

Draper Corp., Permanent© Cement Co., Public Service Co; of

5, N. Y.

and

Vice-Presi¬

,

with suggestions

securities

Street, Chicago 3, 111. Also available are
Clark Oil & Refining, Detroit Harvester Co.,

on

di-

a

rector

York 38, N. Y.

122 South La Salle

Co., Inc., 1033 Thirtieth Street, N. W., Washington
7, D.C.
f •
;
w i I
-

Mr. Fox was

i

formerly

Chicago Title & Trust Co^-Memorandum—A. C. Allyn & Co.,

curities

New

Stock

York

Bethlehem Steel Corp.—Memorandum—William Norton & Co.,

,

Atomic Letter No. 45—Commenting on effects of AEC grants

the

of

Corporation, E. I.
McCee Oil Industries,

Works

Rayonier Incorporated and Reynolds Metals Company. Y ;
.

general

partner in the investment firm of
Hayden, Stone & Co., 25 Broad
Street, New York City, members

Also in the same

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

It it understood that the firms mentioned will be
to

In the same issue is a survey of

the current issue of "Market Pointers" there is a

In

Thursday, March 5, 1959

A. U. Fox Partner in

Comments for Investors"—Francis I. du Pont & Co., 1 Wall

Street, New York 5, N. Y.

...

on Wrisconsin Bankshares Corp. and
reports on
Paragon Electric Company and Texas Natural Gasoline Cor¬

-

-Group jannual .spring, ^party at
the Suriset Gouhtry 'GiUb.
*
;
-

June 18, 1959

Twin

Cities

annual

rent issue

of "Pocket Guide"

in various

categories.

with suggested lists of stocks

Walt Disney Productions—Data—J. R. Williston &
Beane, 115

Broadway, New York 6, N. Y»

.

Club

38th

and ^outing

at

Bear Yacht

White

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

Ohio

Tung Sol Electric Incorporated—Report—Harris, Upham & Co.,
120 Broadway, New York 5, N. Y. Also available is the cur¬

Bond

picnic

Oct. 22, 1959

poration.

(Minneapolis-St.

Paul, Minn.)

(Cincinnati, Ohio)

Group of In.vestment

Bankers Association annual fall

meeting.
Nov. 2-5, 1959 (Boca Raton, Fla.)
National Security Traders. Aa»ociation

Annual

Convention

the Boca Raton Club.

at

(

Volume 189

Number 5826

.

.

The Commercial and Financial Chronicle

.

9

(1085)
the free flow of investment
capi¬
tal. Many of you know instances

As I See the Market
By ALPHEUS C. BEANE*

unwillingness to take a gain and
pay the capital gains tax.

importance of investor working under a
plan, including segregation of speculative and in¬

vestment

If.
'4 •
.

>

fr

while

high

present

to

-

a

I

teach

investors

about

more

clamored

the

the

of

to

spend

his

recession.

the

pension funds,
other

and

direct

in¬

in Ameri¬

accomplished,
will

we

made

*|

have

,

our

Beane

sup¬

tors

to

the

almost

What
is

Prices
stocks

a

or
her particular
Regardless of whether
or not it may be the best
one, a
plan will always produce better
results than haphazard buying and
selling of securities,
n Before
you set up
your plan,
it
is
important that you
dif¬

of -his

needs

situation.

ferentiate between

speculation

speculation

Webster

investing.

"engaging

as

of

chance,

unusually large
profit."' He defines investing as
"converting into some form of
wealth other than money, usually
in a more or less permanent form
and as a means of obtaining in¬
come or profit."
to

like

think

that

we

work

and speculate to make money and
we

invest to protect what wc

have already made.

tecting,

I

mean

And by pro¬
the protection of

purchasing power.-

our

funds which should be devoted to

investment

end up in specu¬

can

lative securities.
*

To avoid this

unhappy situation,
maintained
personal' accounts: a small
for speculating; a large one

I have for many years
two
one

because

confiscatory

of

capital

of investment plan
today's markets?
obviously high. Many
in

substantial

the next few years.
no indications that

over

still

are

run

its

course.

Inherent Danger
Such

„

devoted to investment funds.

The

Many
sold

of

of

posit

The

market.
new

a

market

condition
over

25

in
that

clear.

1957,
*>

most

it

has

What
To

me

of

is

at

the bond
depressed

attained

has
the

In the recession

politicians

today's

market

high:

the

years.

this situation?
is

stock

time

all

is

about

now,

both

in

caused

can

of

parties

of

out

favor

at

the

capitalization is too small for .the
large institutional investor and

Business,

.New

York

City,




locked

the

by

in

in¬
not

great!

safe

capital

new

A Novel
There

which

is

a

de¬

gains

Proposal

the

stocks

common

have

out,

way

a

Government

more

gains

in

way
can

re¬

taxes

income

from capital
and, equally impor¬
tant, a plan which will permit a
freer flow of investment funds.

Specifically, I suggest that this
change be made in the capital
gains laws: For the years 19591960 the taxpayer will compute
his capital gains on the same basis
the

as

present

law

until the

tax

10%

of

the

length of
the security has been held.
This

modified

tax

Feh.

28,

proposal

practically
receive

this

of substantial

the

the

much

as

in¬

has

lic

fully

am

to

to

Government

the

as

$1 billion

a

.

.

.

tax

and

holding

no

more

not

or

projects

that

period

revenue.

all

capital gains
10%.
This is so

are

accomplished, it will help Con¬
gress tn balance the budget, make
it possible for more private funds
to tiow to the
help of new and
smaller companies, will free se¬
curities of old, well established
companies
from
their
present
place in the locked box.

Vincent Newman Co.
■

■

Ai

(Special to The financial Chronicle)

& Co.

man

111.—Vincent

New¬

has been formed with

of fices at 231

increase

in

revenue

with

South La Salle Street

P. Newman, Secretary.

Mr. Bugli was

was

formerly

an

Organization, national public

relations
ment

James A. Reeves With

of

business

prior

Doremus.

;

to
-,

Of

Let
see

me

Hemphill, Noyes Co.

shares

now

was

formerly with Adams-FastCompany and prior thereto
vice president of Akin-Lam¬

bert Co.

real

no

investors
the

for

reason

to

one

election

of

Leonard A. Sos-

land as Assistant Vice-President
of this firm.

Mr; Sosland has been associated
Eppler, Guerin & Turner

with

since

January, 1955," when he
joined the firm as a registered
representative. He is manager of
the

Longview office.

~

Commonwealth Sees. Adds
COLUMBUS, Ohio
Buchwald

is

—•

with

wealth Securities

for

Corporation, 30

With York & Co.
(Spoelal to The Financlal Chronicle*

SAN

FRANCISCO, Cal.—Delis

Manuel

has

staff

York

of

been
&

added

solicitation to buy
only by the Prospectus.

nor a

any

of these securities.

y

March S, 1959

big
are

good stocks which will fit
individual requirements but
no

Blossman

Hydratan

other than

reason

unsuitable for institu¬
investors.
The individual

are

tional

investor

has

far

different

$1,200,000

needs

than the investment fund.

5% Subordinated Convertible Debentures due 1978

Because of the high level of so
many

equities

that

sound

a

today, I believe
plan is to have half

of your funds in good

120,000 Shares Common Stock

tax-exempt

(Par Value $1

or

corporate bonds — the exact
proportion to depend upon your
individual needs.

portion should
in equities of

The

then

other

be

per

Share)

Each Unit consists of $500 principal amount of Debentures and 50
shares of Common Stock, which are separable following delivery.

pro¬

invested

companies which
(1) Good management. (2)
bright future.
(3)
A
price

have:
A

which

Price $500 per

has not

estimated

completely outrun
earnings for 1959 and

Plus accrued interest

Capital

Gains

on

Unit

the Debentures from December 31,1958

Tax

Copies of the Prospectus may be obtained in any State only from such of the several under¬
writers, including the undersigned, as may lawfully offer these securities in such State.

Earlier I stressed the restrictive
nature of the capital gains tax.
This

is too important to be fully
discussed in this brief discussion,
but I would like to make these

points.
First

only

having

United

a

in

States

the

may.

is

Broadway, New York 4, N. Y.

the

free

world

capital gains tax.

Many

consider that
fiscation of property.
it

S. D. Fuller & Co.
26

the

country

All

impedes, to

of
a

us

it

is

con¬

Be that

know

dangerous

that

as

it

degree,

to

the

Co., 235 Mont¬

gomery Street, members
Pacific Coast Stock;

NEW ISSUE

other

size,

offer to sell

I

individual

buyer

growth securities. There

name

an

Clarence

Common¬

East Town Street.

try to compete with

institutional

'

of

the

Exchange.

The offering is made

point:

;

Eppler, Guerin

not

This announcement is neither

emphasize

*

.

DALLAS, Tex.—John W. Tur¬
ner, President of Eppler
Guerin
& Turner, Inc., Mercantile Bank
Building, has announced the re-

the tremendous advance that
has occurred in the better known-

growth issues.

develop¬
joining

•

Sosland Asst. V. P.

J.

(Special to The Financial Chronicle)

was

value

and

agency

the

$2 billion of taxes is
only 2Vz% of the $81 billion in¬
the

re¬

lations agency, from 1944 to 1953.
He later operated his own
public

(Special-to The Financial Chronicle) *

much

$2 billion.

in

the Fred Eldean

Mr. New¬

officer of

in
1956.

a

Even this

crease

since

Bugli

Vice-President of

cent

i

rormen in unicago
°
CHICAGO,

W.

so

be

m

Ralph

the

taxed

pub¬

relations

New'York

the

LOS ANGELES, Calif. — James
great A. Reeves has become associated
market -values,' the with
Hemphill, Noyes & Co., 628
jumped to an esti¬ West Sixth Street. Mr. Reeves

1958

the

division

will

If

-

only
important
to investors, that I urge you, as
a group of
responsible sharehold¬
ers, to take action to effect this
change. I believe that, if it can

figures, in 1950, showed
capital gains tax receipts of $1
In

di¬

rector; of

small

a

1959-60 years prove the point,
tax
laws should be changed

ficial

billion.

Mr.

agency's

The last of¬

year.

pub¬

Bugli has
been special

a

Allan Blair & Co.

income

as

and

lic

whether

see

of

relations

firm.

con¬

reduction

W.
Vice-

advertis¬

ing

it

as

as

the
of

President

Gov-,

man

time

be

can

new

election

Ralph

assured

source

past, and I
that

the

•

source

announced

Bugli

equals the amount paid as a re¬
to engage in a securities business.
sult of capital gains that he paid
Officers are Vincent E. C. New¬
in 1958. On all gains above that;
man, President and Treasurer; B.
amount the tax
would be
regardless

has

had

people

talk by Mr. Beane

1959.

a

making it difficult for
growing companies to obtain
equity capital!

mated

answer

year

before the Fed¬
eration of Women Shareholders in Ameri¬
A

too

City,

nity to

is that untold millions

boxes

which

Restrictive

Today's Market
word

tax is

William H. Long, Jr., Chairman
Doremus
&
Company, New

With this trial period the Gov¬
ernment will have the .opportu¬

tax, thus
new

the

196*0.

two should never be mixed.

A

the

are

of

10% tax will bring in substantially
more
income.

rev¬

lost

There would

is"

from

vinced

as¬

other

securities

are

'

-

has

know

you

where

shares

tax

whose

investor

lose

extra bil¬

an

from

this

produce

because

I
feel,
are
fraught with danger.
But there
are many companies whose stocks
are
selling at prices well below
highs of previous years and on a
sound time-earnings basis. There
are
two
broad groups:
(1) The
blue chips, such as Standard Oil
of
New
Jersey and other oils
are

in

com¬

had

$4,000..

the

The result

situations,

which, for

Speculation is a dangerous oc¬
cupation. Success requires almost
complete devotion and full ener¬
gies. I therefore, suggest that most
of your
holdings should be of
investment quality. All of us like
to take a chance in the hope of
making a big profit. This can be
dangerous, for, without control,

'

this

defines, present time; (2) Good, small and
size
companies
whose
in haz¬ medium

transactions .for

ardous.. business

that

securities

the bull market has

.

most important thing
investor is to have a
plan which meets ,the

for

reason

one

plan,

I

divi¬

selling at prices which
earnings

are

discount

every

;

to

type

are

in

he

/
Of Dorenms ft Co.

investment.

will

it

come

profit.

stances

is,

•'

suitable

There

the

sell

growth

Importance of a Plan;

and

than

gains tax.

thousand shares of IBM.

The

treatment

shortage of equities has been the
unwillingness of so many inves¬

crack-pot, socialistic, antibusiness schemes, if he realizes
that by so doing, he is under¬
mining his own savings account,
his own insurance policy, his own
pension, yes, even the funds in¬
vested by his own union.
These
people
are
capitalists
just
as
surely as are the owners of a

and

enue

real

ceive

third

a

risk

that

.

tax

interest

to

Still

port

for

financing

dends.

C.

Alpheus

per¬

will

son

given

of

way

No

.

favorable

more

a

life.

equity

rapidly. In 1957, for example $10
out of $12 billion of new capital
raised by corporations was in the
form of debt
largely because

great
contribution

to

or

there has

recent years, the demand ex¬
ceeded the supply and prices rose

be

can

little

clear,
chose

bonds

over

Since

little

so

the

The Government will

protect

became

investors

securities
so

money,

to

to

proximately

in

business.

this

spend
left

this

more

securities.

been

sharehold¬

ers

to
one

As

and

dollar

are

If

dollar.

equity

inves¬

no

retained

en¬

cries

political parties look¬

ways

was

more

tors that they

can

both

Under

out

With

for

stock

$43,

he decided not' to sell.
Today the stock has dropped way
down; he has a paper loss of ap¬

dangered the value of the dollar.

ing

the

of

eminent

parison

securities

there

"

forms

$33

sumed,

ourselves

These

When

about

ap¬

have

hll

they own and to teach
savings bank depositors, in¬
surance policy
'
holders, bene¬
ficiaries
of

Motors at

revenue

he wanted to sell
take his $10,000 profit. After
capital gains tax, he would

and

capital gains tax, offers specific novel proposal for change
in years 1959-1960.

strongly commend efforts to

share. "

proached

-

the

American

than

more

Bugli Elected V.-P.

capital gains
York
from sale of unlisted securities,
those traded on other exchanges,
real estate transactions, and other*

just the other
A client bought 1,000 shares

of

even

be the

attention

my

day.

market is

fraught with danger, nevertheless, opportunities exist in some
blue chips that are temporarily out of
favor, as the oils; and
in smaller companies whose capitalization is too small for the
large institutional investor. Stressing the restrictive nature of

"

,

i

Asserts

accounts.

be

lion dollars in taxes.

Although I do not handle ac¬
counts, a specific instance came

Beane stresses

consistent
4 :-

the New York Stock Ex¬

on

change.
By reducing the capital gains
tax to 10%, I believe there would

good
profits
have been
turned into losses because of the

Directing Partner, J. R. Williston & Beane
Members New York Stock Exchange

Mr.

listed

where

Howard, Weil, Labouisse, Friedrichs
and

222 Carondelet

Company

Street, New Orleans, La.

The Commercial, and Financial Chronicle

ID

Treating the Real Problems Now
Instead of a Future Inflation
SEYMOUR E. IJARRIS*

By DR.

what political changes in 1960, if continued
bring to our economic climate is enunciated

in

1958,

can

inflation in

of the

(1) tax cuts now instead of waiting until 1960; (2) remov¬
Federal Reserve's independence; (3) increasing gov¬
ernment
contra-cyclical spending; providing cost of living

ing

ing

and housing credits.

consumer

Threat

of

eerve

in

of

Inflation

fearful

So

a

of

a

only

of

recovery

recession

about

who

Re-

with

one-

bring

of

restraining these demands and
helping to bring on a
recession? Undoubtedly, the Fed¬
eral Reserve has some responsi¬
in

therefore

raises

discount rates
in

bility, but the question can hon¬
estly be raised whether they have
not been assuming excessive re¬

third

the

quarter of
1958.

for

And

sponsibilities. To neutralize com¬
pletely the expansionary effects
of cost and price policy as well as
governmental policy is a responsi¬
bility which the Federal Reserve
cannot
easily
undertake
and,
moreover, is one not likely to be

.a

year of reces¬
sion there was
no

increase of

bank

reserves
Dr. S. E. Harris

to expand

the
supply of money and no
Significant expansion in the ex¬
cess reserves.
In other \yords, the
Federal Reserve
has treated a
future inflation
when the^ real
total

II

:

Anti-Inflationary Policy and the
Recession

inflation

with

concern

bring about a recession
a period of three years
the country about $50
billion. This recession is in part
the result of the restrictions on

helped

Which in

has

cost

monetary supply.
In part the re¬
sult of the excess of capacity re¬

sulting from
But

investment boom.

an

of

extent

the

the

excess

of

capacity depends in part upon the
supply of money which influences
purchases, and buying was kept
down by
serve

a

fulfilled.

vigorous Federal Re¬

policy.

UJost Push and Inflation
,

,

In the past, the Federal Reserve

generally tried to deal with
inflation brought on by an excess
of demand, that is, an excess of
spending in relation to the
of goods and services, with
sultant rise of prices.
But
recently they have had to
with the cost push.
By the cost push I do not
merely increases of wage

flow
a -re¬
more

tistics has shown

that the rise of

relatively

costs are

non-wage

as

costs.
By trying to treat the cost push
in the orthodox anti-inflationary

important

wage

as

Federal

the

manner,

bring

the recession.

on

Reserve

strengthen

and

,"X

,

Responsibility of the

V

Federal Reserve?

'

~

-

Unemployment and Prices

How far is the Federal Reserve

Despite

supposed to go in voiding the de-

the

rise

of

1

unemploy¬

summary

before

Committee

on

of
the

Monetary
Policy,
Feb. 7, 1959.

statement by
Dr.
Joint
Congressional

a

The

Economic Report
Washington,
D.

on

The failure

-1956-58.

Neither

C.,

In

other

stability

ployment,

the recovery.
The govern¬
mental representatives before the
lays

words,
nor

though

we

high

had
em¬

undoubtedly

recession

the

in

Policy

more

ade¬
to get out of
quickly was

of

From

expenditures

-

to

impose

credit.

amount

Federal

the

Treasury,
in
thousands
of pages of evidence,
has ever made any suggestions on
nor

turbing element in the money or

prices
to

—

and

income—should

live
be

given

a

benefit

Policy?

icy hold that it is to be defended
because it is a general approach

a

a

dear

interfere

not

does

and

allocation

of

$64

2%

the

with

Actually,

resources.

policy hits espe¬
government gen¬

money

schools,

cially

erally,
and
small
businesses
against those business units and
in
particular large corporations
that have plenty of cash. In other
words, monetary policy is specific
in

deal with the diffi
culties of the depressed areas.

Available

immediately in N. Y. C.

.

.

ingly

-

under

Write

or

Phone

—

RBctor 2-9570

Edwin L. Beck, c/o Chronicle. 25 Park




PL, N. Y. 7

1946

demands
the

that

rency

V

''X'

.

I

Ohio—RobeftlJ.

CLEVELAND,
Grace is

with

now

& Co., Park

L.' A.

Caunter

Building.

-

X;\XXX--:

Joins E. N.

*'■':-■ ->*jfr•

Siegler

(Special to The Financial Chronicle}

CLEVELAND,
Schwerin
with

has

Edward

Union

N.

connected

Siegler

&

Co.,

Commerce Building, mem¬

of

bers

Ohio—Edwin? E.

become

Midwest

the

Stock

change.

Ex¬

•?.?:
'

X'5

i

this particular proposal on

COLUMBUS, Ohio

—

Estop W.

with Commonwealth

now

Securities

Corporation,

30
East
X-C!

Town Street.

Joins Midland Investors
(Special to The Financial

Chronicle)'"/'

CLEVELAND, Ohio—Russel G.
Means, Jr. has joined the staff of
Midland
East Gay

Investors

Street.

52

Company,
I

I

,

"

.

'

With Brown, Madeira
i

uvi;
Chronicle) ~
■

(Special to The Financial

Ohio

DAYTON,
with

Jr.

has

Brown,

•

Stephep?

—

D.

become affiliated
Madeira & Co.^of

Recovery?

With E. I. Hagen

Monetary policy contributed to
extent to recovery but not

some

enough.

nearly

banks

reserve

debts to
reduced, and

were

much
done

more

Bui
been

tax

of

first

have, been
the

automatic

deficit, with a reduc¬
income, a result of the

took place

Second,
crucial

period

age,

rise

of transfer

^unemployment,

etc. benefits.

contribution to

LOS

the

old

This important

spending

was

E.

ANGELES,

Golas

and

'

Lewis
Leland are

Calif.

Inaba

—

Hill Investment
South La Cienega. Mr.
Golas was previously with Daniel
now

with Murray

Co.,

1435

■'

during

payments of about $5 billion, that
increased

Hill Iny^

(Special to The Financial Chronicle) fj

'

was

a

Ipo.,

D. Weston & Co,

in the 30s and 40s.

there

With Murray

reduction

in

*

818 Broadway.

and

receipts and therefore the

increase

is.

Futtrup is with E. I. Hagen &

expand excess reserves.
major contributions to the

recovery
foremost

tion

have

-t-

VANCOUVER, Wash.—Niels ;W.

to

The

of

should

X

(Special to The Financial Chronicle)

Indeed,

this was a stimulative factor.

requirement

Employment Act of
stability of (the cur¬

of economic policy,

/

New Ycrk.

What. Has Brought About

increas¬

be one of the fundamental

objectives
oppose

a -

sensible

and

With L. A. Caunter

Bull,
XIII

changes of our tax structure that
the Stability Objective
Reserve

to

seek

employment,

(Special to The Financial Chronicle rjx

policy

IX

Federal

But

spending patterns are also worthy

Nor does mone¬

its incidence.

tary

special

in 20 years and perhaps
million additional to cover

Legalizing

objective %f

should

we

Sta¬

economy.*

worthy

and

Stuart is

The defenders of monetary pol¬

year

The

policy,

the

to

a

("Special to The Financial Chronicle)

Is Monetary Policy a General

fixed

from

is

delays

of ;fens

with losses

With Commonwealth Sees,

For example, an increase in
the Old Age and Survivors Insur¬

monthly

rjq

periods, excessive'^emonetary policy accen¬
decline; in recessions,

billions

bility

XII

the most
are the

on

*. »

j

the financial market.

inflation in the next
year. This would be a much more
effective approach than bringing
on
unemployment with its inci¬
dence heavily concentrated on 4-5
million unemployed.
(Twice as
many
unemployed at some time
in the year.)
'
'

Jan. 1. 1929-Dec, 31, 1957

of

of

housing

consumer and
neither, the

But

Reserve

deal with this

'group by far

have

9

»

boom

the

is to control
major assets, in

their

help.

a

In

course

approach
of

particular

situation, those-who are being hit
by the inflation should be given
special help. Most of the popula¬
tion would gain from full employ¬
ment
and
the
rising output as
well as the increase in productiv¬
ity. But those who are injured by
rising
important

evi¬

business

xv

requirements.

reserve

creation

of prices of 1 or 2% and a
saving of these millions of unem¬
ployment?

Then in order to

of

111 Conclusion

A possible way to deal

Another

rise

old" who

total

the

increase

with financial intermediaries is to

^

have

rise

spending in relation to business
savings and of consumer spending
in relation to consumer savings
were important factors
tending!to
bring about a rise of prices.!' fiX'

objectives.

intermediaries, that is,
companies, savings

gov¬

from

is

insurance

spending.

for Price Instability

be

the

that

dence

of

there

security,

the

alternative

peace

deficits

or

But

growth,

to

$25 billion, would not a more

sensible

to

it.

only alternative is,
say, a price stability that is at¬
tained by a rise of unemployment
by 2 or 3 million or more, or
therefore at a cost per year of,
Where

amount

surplus
1958.

it

makes

how to deal with this rather dis¬
;

in

make it active and therefore tend

bility.
VIII

the

and

1955

banks, etc., more than fill the gap.
They obtain inactive cash • and

services without jeopardizing sta¬

say,

increase

fi¬

the

that

paper

clear relation¬

achieve

the

.the

have

my

least

no

ernment

the- recovery

*

by

at

so,

nancial

the
time for the tax cut, most likely
not 1960, as the President implied.
In view 4>f the need pf services
and the progressive improvement
in the economy, the more likely
policy would be a tax increase in
would

not

Caused

Deficits?

difficult for the Federal Re¬
to
pursue
an
adequate
monetary policy. As the commer¬
cial banks are restrained, the fi¬

rose

x.'•

ship between the extent of price

of

control

intermediaries

nancial

more

fear of impending inflation
Financial

of

to

failure

been

Primarily

There is

times.

very

The year 1958 was

we

is

this

Intermediaries

recession much below the $50 bil¬

Thus

1958

have shown in

I

tuates

The

potent fiscal policy would have
brought about a recovery much
sooner
and cut the costs of the

1960.

in

Government

serve

Federal

1958

(say)

•

be¬

boom

the

XI

Actually from the third quarter
1957 to the second quarter of

$150

CHRONICLE

in

Treatment

only by $1 billion as against a cut
in GNP of $17 billion.
A more

a

COMMERCIAL & FINANCIAL

securities

tive.

taxes.

ance

122-Bound Volumes of the

not to

necessary

private borrowers wanted
the money.
This seems like fool¬
ish policy, that is, to favor the
market at the expense of stabil¬
ity, and especially where stability
is held to be the primary objec-

to $100 would only cost $3 billion

"FOR SALE"

insisted that it
issue long-

Committee

Byrd

wsis

partly the result of excessive faith
in monetary policy and yet with
inadequate recourse to the mone¬
tary
weapon,
and
therefore a
failure to use fiscal policy, that is,
a rise of spending and a reduction

the

ment, prices continued to rise in
*A

Harris

otherwise

cash

absorbs

available to the economy, and de¬

anti-recession policy was not

quate.

Correcting

rates.
In the last year or so many have
exaggerated the contribution of
wage
contracts
to the rise of
prices. The Bureau of Labor Sta¬

Reserve restrain inflation by

therefore

1958, monetary policy as an

deal
mean

boom

term

Monetary

of

Use

would have
rapid had the Federal

more

Inflation

Is

securities in periods
and thus help the Fed¬

cause

In

The recovery

factor.
been

pay

•

was

xiv

the

that

clear

become

absorbing excess cash, but issues
long-term securities in the midst
ol
recession,
as
in
1958,
and

VII

lion level.

,

IV

••

helped

III

What Is the

."

*

has

problem is to treat a recession.

Its

higher

about

of

eral

attainable

an

as

year,

sup¬

policies
tend to
prices, how

governmental

pient, the Re¬
serve

Reserve

Federal

against
figure of 4 or 5%.
a

How

contracts?

wage

far should the Federal Reserve go

i oty-

line m p

the

workers

million

70

em¬

posed to go in neutralizing or re¬
straining the . government in its
fiscal poliices?
In other words, if
the wage and pricing policies and

and
7%

make
is

far

with

quarter of the
way
to the
expected

peak

and

ployers

Overdone

Federal

coming inflation that,

midst

the

Is

the

is

of

in 1958, part of
retroactive, increased
the spending stream.
Fourth, the increase in govern¬
ment spending, which was slow
in coming and insofar as it was
effective was more largely the re¬
sult
of
state
and
local,
rather
than of Federal, spending, was a
which

government

output increases to less than 2%

millions

the

of

cisions

I

of

crease

Treasury does not issue long-term

losses.
It may be said that the policy
of the government now seems to
be to maintain stability of prices,
even
if it means a reduction of

intermediaries

particularly

And Other Policies

has

the
increase
in r wage
inclusive of the Federal in¬

Third,
rates

aggressive in its tax and spending
policies.
Y
'■]
~

~~

It

bal¬

be

must

x

•

primarily of social security
legislation in the 30s.

Government

Failure to Integrate Monetary

anced against

requirements on noncommercial bank financial
or controlling creation of their major assets—

reserve

Gains

objective.

at

independent of other Fed¬
policies.

eral

penditures may be necessary even
if this is contrary to the stability

adjustments for fixed income groups hurt by creeping^ infla¬
tion as the less expensive policy for the economy; and impos¬

stability

be

to

important, services like urban re¬
development are of great impor¬
tance and are not being met, that
an
increase of governmental ex¬

Dr. Harris favors:

school of economic thinking,

new

to

take to allow the Federal Reserve

objectives of economic pol¬
icy are not merely stability, but
also growth, equity, security, and
the; provision of necessary serv¬
ices.
It is even conceivable that
if
defense
needs are large and
The

economic growth, full
employment and other goals. One of the leading theoreticians

^

-V

Objectives of Policy

by placing price stability ahead of

achieve

the
expense of other and frequently
more
important objectives.
For
the
same
reason,
I am not in
agreement that the Federal Re¬
serve should be independent.
So
long as the Federal Government
has serious responsibilities in the
economic field, it is a great mis¬

that sense.

by leading critic of present Federal Reserve's and President
Eisenhower's policies. Dr. Harris contends policies pursued
caused the recession (at a cost of $50 billion in three years)

,

Thursday, March 5, 1959

.

.

result

determina¬

their

in

Reserve

tion

unemployment

Hence an

policy contributes to
VI

as

eral

Generally when unemployment

develops, unit costs tend to rise;
and, therefore, we get not only
a
rise of wages but an increase
in cost due to the lower level.of

A harbinger as to

would

it

that

-grounds

strengthen the hands oLthe Fed¬

inflation.

activity.

Chairman, Department of Economics
Harvard University

the

the

slowed

Reserve

Federal

the

a

.

(1086;

the

Joins Walston Staff' f
(Special to The Financial

Chronicle)^
Calif.—Doyle H.
has joined the .staff of
& Co., Inc., 210 East First

LONG BEACH,

George
Walston

Street.

..

/

.

•

'

:

Volume
"I

u ■;

■

.

.

189

5826

Number

.

The Commercial and Financial Chronicle

;

.

(1087)

'

•••

.ness

of the

-and

Wheie Commercial Banks Err

intemperate

type

do

can

In

'V..13

Attacking Savings Banks
Executive

Vice-President

National Association of Mutual

Ill-considered

attacks

on

to

the

wall

also

out

by the facts.

institution

tual

financial

harm, not only to

had

mutual
much

thrift

any

is hardly borne
To be sure, muinstitutions
have

spectacular

a

growth

the

House

tax-originating

Ways

and Means Committee.
"The

since

basic

tion) is

an

problem (of infla^
inadequate level of sav-

J, e !r.ntlle.tbnft indu?try> but to the end of World War II, with jngs out of current income. An
^ co'1lm"nlty at lar?e- savings deposits at mutual sav- ever-increasing volume of real
hanlrirta
friend
ln®? banks and share accounts at savings is needed to meet the
'come-lftelvV' to th! thrift
savlJ!fs a,?d Ioan associations and economy's requirements for rehavinp' helatertw rpm«Si
credit-unions expanding by two placement of plant and equipment
the ' imnortanre^^ ofY thriw
aPd,a ^alf tlmesthis pe- under inflated prices and for
amwinTs/remith
5 howev,er' Hi® ""P"16™31 growth based upon full exploitagrowing strength of the thrift in
the thrift
banking system
has
also
been

By GIIOVER W. ENSLEY*
„yi o

of

others.

11

Savings Banks, N. Y. City

ness

.^ 2 Former Executive Director
sil

-:>v

Savings

banks'

fallacies

and

ynm

of Congressional Joint Economic Staff

trenchantly

spokesman

unsupportable arguments

against mutuals by commercial banks.
liberalization

proposed tax
yd

h< in

for
on

commercial

arraigns

the

economic

in-

said to be levelled

lun

but

(1)

he:

charges

mutuals is unwarranted and would cost

savings-loss than gain in tax-revenue;

(2)

-

ooiioq

roili has

affected accusant's capital position

new

mairi

Those

marked

who

re-

have

r

.

.

..

place.
free

a

for

It is in the tradition of the

private

enterprise

a

economy,

have

.

those

.loan

overall

;

In any

will

be

amined in the

eco¬

event,

in-

i

well-

•v:, could

hardly

T
In

Role

,by

cross-current

of

controversy,

w

0

x.

.

.

banks.

effectiveness

The

js

shown

by

the

from
over

there

mere

one-sixth

in

1956

to
•

of

wZld

,

Mutuality

hardlv

,tid

b

Position

the

...

.

P°n3-„p-i

dphf

111 fman<£nf. the Fedeial debt W
a non-mflationary manner. These

well

results

adverse

nvMr,n

of

tax

unwise

fcySlead tTsSgs
substan-

losses
seem

be

to

ill-health

or

light of

.

i

pos~s^

con-

in the

resolved
,

one-third in 1957 and to two.

under the

considerations. Any ill-conceiYu^-xin-Cie+^fe+ in ^axes
institutions would binder
their ability to promote savings
?
? Provlde a
reserv€ja
iJUuUre ^5°^
The result
.would be a reduction m real savaV
iet.
*mallc® the
Vitally needed housing and lndu.s?Flal exPansl0.n- So» als.°> would
the reduction inreal savm^ com-

.total flow of individual's savings

rtis-

be

must

that

of

ni«ner

The tax status of mutual thrift

sav-

fact

a

real savings

pressure."

vigorous pursuit of savings
commercial banks in recent

years

be directed towards
higher
i
«*'
nigner
level
of

a

institutions and commercial banks

ac-

mutual

monetary

and

conditions of inflationary

present

savings and

or

.they increased their share

Some of the attacks
tbe effect that the mutual form
; of business organization is alien

ex-

of the Com-

Changed

.the

-

taxatlon< and monetary

;tr^s*

mission's study.

Siffnificantlv

we can

thoroughly

course

the

gSS
LUf!MU;1 cUia

that the role of thrift in-

being that

nomic
i"

and

tell.

sure

stitutions

prosperity and

i

groups

one can

of

era

other

of

From

together7 with

be

World War II
an

—

sa^gs

and

associations;

:ings

The Main Questions at Issue

i-

fmporttr^

V;4he '30s and
into

Commission

Vent

emerged

from the great
depression of

t

System-

tim^

in

counts than do either

,

Su Jed?uaK- 5eserve,

voluntary

much, larger absolute amount of

funds

.Let the individual choose his out-

.Whether the findings of the pres-

We

processes.

encouras,n^

stock

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

thrift

century and

-

economic

bank

half have

a

to

iet for savings from among the
jV^^- problems, and he prescribes joint attack on inflationary bases.
.several types available, but let
'£nThe
American
economy : has etary. Commission,
sponsored by LJ}im cl° ft without being confused
->tindergone
fundamental
changes the U. S. Congress rather than a ..{>y spurious argument and attack
in the past three
decades and so private organization, were basic -by one type oi institution on the
has our understanding of basic to the eventual establishment of other.
•••'■►/
...

in

tal

•;

:

advance

prices to well above book values,
Favorable opportunities have thus
been offered to obtain new capi-

nothing to fea® from new, hard,
,honest competition in the market

dedicated

nearly

obstruction to Federal Reserve monetary policy. The economist
avers
these attacks do not solve country's basic economic

-vinh

strong.

encouraffimr

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

;

/;?

paid- to

of loanable

source

been

^hq savings; (4) finds misleading the references to "12% bad debt
or
reserve"l ant* ® quotes Reserve Governor there is" no
V;

profitable

tprhnoWiral

ranjd

f8 stockholdersln and in the policies should
♦^
d3v}de"ds

clrv

serv-

funds, competition is likely to

ability to attract

or

thrift

nf

dances. FfeLl

W*8 ^ebeen

remain

and

monetary theory that would impose similar financial controls
suc^ as reserves—on both institutions; (3) denies competition

'jvjj

thrm

?inn

<

hTt Mflo

Further, so long as savings
a
relatively inexpensive

ices.

more

rebuts

«ow

StaLn9*^nfnvTih^
institutions pioviding

Dr. Ensiey favors tax

banks,

t7esafor

SmSS

either

to

the. economy

tially in excess of

any

immediate

increase in Federal tax receipts,

from

Within the framework of these

broad fiscal considerations,

their abilitv to attract

a spe-

.to a ?nvate enterprise economy position or their ability to attiact cific issue 0f fundamental impor"
hardly be dignified by an
T
® *io Tb oPPnnH nnectinn tance is the effect increased taxes
answer.
Mutual
endeavor
is
asTaxation. The second question

-

nwn' inHnctrv
own

the
rnlc
■
industry, ,the role
would have on the e0un(iness of
savings bank has *0ld as the nation itself and is at *at Jssue in current financial dis■
in
changed
so
rapidly
irn recent£the h^art'of^^the^"democratic proc- -cussion is the broad one of taxa- ,
recent -the heart of the democratic
so; rapidly/: in; manv
;cussion ia
recoeni7ed that in framing a
earlier years.
that
thArri
ill
n/ir,,+
firm
Tt
nupction
mpritc
uccu ictuguueu txidL
r
w
f
years that there are still many • ess.
Mutual
thrift
institutions-tion. It is a question that merits program-for
Grover w. Ensiey
for taxing 1
Wide accept¬
observers who are unaware of its :have
been
serving
me
•
serving
the
same -the thoughtful and unbiased contne income ot
ance of the
thrift institutions, t
the ability of
increasing national significance in worthy objectives' in fundamen- sideiation,
not
only , of
those....
Wl-Wi
>
theory of economic stagnation has capital markets.
As "recently as tally ^"the'"same" way for doseto'l50 directly involved, but also of all
.^given way to recognition of dy- 1951, for example, savings banks years. .Services have been m6d- <citizens concerned with the sound.^
-namic economic growth
Accom- had considerably less than $1 bil- ernized and
techniques improved - growth of our national economy. ^°'TTniivf
panymg these
basic changes in lion invested in mortgages outside ,to serve the American saver
more
It calls for discussion on the high
economic development and thinkof the 17 states in which they opeffectively, but the goal of en- plane of economic and political .+i+1+.a
!
mg has come a new and broader erate. Of this amount only about
,Couraging thrift remains the same.: statesmanship, not on ihe low
1*'
appreciation of the vital role of f$30 million was invested in Cali- if this
goal is un-American, then plane of misleading
i?ef
thrift and of savings institutions.. fornia
mortgages. The volume of • sb is aDDle Die
,tv
slo^ns such as "tax eaualitv "
and theretore must reIy on the
.SThere are few thinking men to- these
inveltments has .grown
moreover' that' In my view the
ap- .accumulation of capital
re(Yday, in contrast to earlier periods, markedly in the past seven years •
im,tual ownershi^ of financial en- -Proach to this matter is reflected
thH»
..vwho would deny that thr,ft and a or so to over $4% b.Il.on m all
provides an unfair com- in the statement of a Congres"°der,
Jhealthy thrift industry _are essen- non-savmgs bank states, and. to
:s,
ana
10
„tttive
advantLe over stock-- sional Subcommittee on Fiscal nstitutions have been taxed
petitive "advantage
over
stock--sional
Subcommittee
on
Fiscal
<.;4ial to meet the capital needs of well over $1 billion in California t^vnA 5nstifllfiftncb
i_ainorma
fr,
Pnlicv
hpadpd
hv the Hnnnrahlp
1951' was devised Wlth tbese baS1C
^ype institutions and is so to Policy, headed by the Honorable

have been

of

our

the

mutual

foreseen

vparc

arp

l

•

w^reco^
.^oLLm
tax^

o

,

" **as lQng

+1° 2?^

-

.

c-EJjS

advertising'^.

-

SfSct

from

^ "S"8

.

frnb2pp

to

tnhVp^HppTpvil

p

importance to a stable price level

rY°ns^derab^ amount °f speak,
California mortgages
are'
.

these

driving commercial banks

Wilbur D. Mills,

now

Continued

chairman of

equally clear. The President, in

being serviced by the savings and
his recent State of the XJnion Mes-Moan industry.
It is important to
sage, expressed this thought well
note, incidentally, that because
'when he said:
our out-of-state mortgage invest-

1

-

V "Thrift is

;v

that

great.

loans»

Why should we ignore it
We must avoid any contri-

now?

bution

conventional

inflationary, processes,
which could disrupt sound growth
our

..w

loan

an

in

While

Thrift

„

,

...

.

the

is -undergoing" critical

examination.
on

It

only by the Prospectus.

TV Junior Publications Inc.
150,000 Units

r.

1.

of

..

:

.

,

..

150,000 Shares of Common Stock
(10ct Par Value)

and

tered
by
reasoned
argument
showing the basic soundness of
the mutual thrift industry and its '
importance to the achievement of ■'
.

re-

is

150,000 Common Stock Purchase Warrants

being
concampus, in private
research
organizations, '-and by sustained economic growth.
government agencies.
From this.
process
of
intellectual
ferment.
Answers Commercial Banks
new, facts
and theories are alTo our friends in commercial;
ducted

made

objec¬

tive study of scholars and of im-

Igtions, our nation's financial struc/Mure

is

T

.

mortgage

welcome

offer

associa-

lending,m, which Mhey are the

we

The

NEW ISSUE

i;partial agencies, we recognize the
Partly because of the re-emer- : dangers - implicit
in
misguided
gence of monetary policy as an academic
theories, as well as in "
effective
stabilization
tool, and-partisan positions taken by some *
partly because of the rapid post- competitors under the guise of
war
growth of financial institu- objectivity. .Each must be coun,

offer of these Securities for sale.

recognized leaders.

Interest

Institutions

....

area

an

economy.''

New

savings and

tions have been enabled . further
to concentrate their attention on

to

Jc ; The

This is not
.

ments are limited to FHA and VA /

one of the characterhas made this nation

istics

-

the

.

•

.

•

*

Each unit consists of One Share of Common

Stock and One

_

Common Stock Purchase Warrant. Each Warrant expires two
years

6

from the date hereof exercisable at $3.00

per

share.

/ipady toeing developed, and ul-

- banking, may I say that it would
legisla- be unfortunate in the extreme to
tion
may
also emerge.
We in seek
competitive advantage by
savings banking welcome—as -I attacks designed to weaken, if not
hope the entire thrift industry destroy, the mutual thrift system.
does—this - renewed
interest
in, - There is ample room in our econand searching study of, thelrole-omy for all of our various types
of .financial institutions and are-of private financial institutions—

Mtimately

*

ji

0'

new

financial

h prepared to support constructive each performing unique functions
/rproposals for an improved finan-: to the total benefit of all. In many
U eial system.
/
broad areas, mutual thrift insti-

-

Price

/

$2.50 Per Unit

;

Copies of-the Prospectus
in

-

any

which

State in

Securities :in

compliance

may

the

be obtained from the undersigned

undersigned

may

legally offer these

with the securjties laws

of such State.

-

We

cooperating with the ,,tiitions and their competitors have
newly established CED Commis- common interests and goals. We
sion^ on Money and Credit in their; are all concerned, for instance,
long-range study of financial in-. with the inflationary pressures
/stitutions and monetary and fiscal
that intermittently .threaten the
p'ojicies. Some 50 years earlier. economic progress of our nation,
the; investigations of another Mon- and we are all seeking ways to
maintain the integrity of the dol-'
'An address by Dr. Ensiey before the
iar
Moreover, each of the main
types of financial institutions deS»ara, Calif., Feb. 16, 1959.
pends on the vitality and soundare

.

Charles Plohn

-

.

;

■

i.

■'

-1

/

&

Co.
_

Members
New York Stock

Exchange

25 BROAD

STREET, NEW YORK 4, N. Y.

American Stock Exchange

-

f




March 4,1959.

on

page 32

The Commercial and Financial Chronicle
12

plaining to private financiers, in¬
dustrialists, businessmen, export¬
ers
and students of government

Foreign Trade and Foreign

policy, what I shall
philosophy and pratice of
sound lending.
In the past six years as a govern¬
ment
official I have visited 37

and

By SAMUEL C.

President, Export-Import

WAUGH*

Bank, Washington, D. C.

ious

Mr. Waugh hedges by pointing out we
that the final decision is up

international channels,

He hopes the U. S. A. will encourage fellow
of international organizations to carry their full

share—including in

some

world today
rests upon the United States.
If
this
country
continues to
maintain a strong and vigorous
strength

instances back payment of dues.

for free world's economic strength
on U.S.A., and opines
we must keep our economy growing
and expand flow of private investments abroad. He
with explanation of Eximbank's contribution to free world and
limitations governing the type of aid it can extend.
The author pinpoints basis

Thursday, March 5, 1959

.

.

Export-Import

Bank reached its 25th anniversary.

ministration

observing this event, we issued the Marshall Plan); and the Pres¬
ident's Emergency Fund. And to¬
a brief statement summarizing our
day still more institutions are in
loaning operations which
sight, such as the Inter-American
Development Bank and, possibly,
this year
a
Middle - Eastern
Development
crossed the $10
In

billion

Import Bank,
our statement

Relations Committee re¬
cently, "the demand for economic
and social betterment is now uni¬
versal." This is the philosophy, at
least in part, for the creation of
additional lending institutions.
Foreign

pointed out,
"became the

first public
agency, either
national or in¬

The

ternational, to
arrange cred¬
for

C.

Waugh

devel¬

The Bann

was

world."

the

founded Feb. 12,

11 years it was a

For

1934.

small

institution, exploring and pioneer¬
ing new programs in support of
United States foreign or overseas
trade.
It made its first credit of

which has come to be
known generally as a "develop¬
ment loan" in
1938.
In 1940 it
authorized the first of a series of
the

type

of which are
loaning in the international field.
In
other words, the question is
bilateral or multilateral loaning,
S.

U.

and

agencies,

should

both

be

all

supported, realiz¬

ing, of course, our government is
definitely committed to both types
of agencies.
The final decisions
rest with the Congress.
f
From

my

these past six

sible the establishment of the now
famous

Volta Redonda.
Until

for

;

;

1945 the

available

mill

steel

integrated

der

amount of funds

lending

Exim¬

by

known, was only
$700 million. But in that year the
Bank was enlarged, made dn in¬
dependent agency responsible di¬
bank,

as we are

the President, and

rectly to

its

lending authority expanded to$3a/2
billion.
Today the Bank is au¬
thorized
loans

outstanding at
to $7 billion.

up

When

the

became

a

to

Congress

by

any one

have
time

Secretary for Economic Af¬
fairs, during which period I served
as
Deputy U. S. Governor of the
International Monetary Fund and
the

International

construction

Bank

for

Re¬

and

Development,
and then for the past three years
plus

President of the Export-

as

Import Bank—I have had an op¬
portunity to study both phases of
this problem.

dollar

in¬

at

high level most countries of

a

world

free

the

difficulties

tomer

their

or

point

There
I

is

believe

one

point
all

will

we

upon

which

agree,

and

support
This

States.

or

without the

endure

dollar

could not
of

be continued.

my

generous

the

support

institutions, in

would
United

existing

to

opinion, should

I do

firmly believe,
and agencies have
coming, into being however, that every effort should
be made to—and here I am using
to provide loans or grants for pur¬
a
mild word—encourage our fol¬
poses generally similar to those
financed by Eximbank.
Some of low members of these interna¬
these
particularly
the
U.
S. tional organizations, particularly
where
the
recovery
has
agencies — already
have
passed those
from the scene or been greatly been marked, due in part to United
reorganized. Others, especially the States aid in one form or another,
international agencies, are grow¬ to carry their full share and in
ing. We have today in Washing¬ certain instances to pay their back
are

—

dues.

ton in addition to Eximbank:

The

Other Agencies
The

International

Reconstruction

the

Bank

for

and

Development;
the International Monetary Fund;
the International Finance Corpo¬
ration;
the
Development
Loan
Fund; the Commodity Credit Cor¬

poration;
the foreign
currency
lending program of * the United
States

under

Public

Law

480

(which Eximbank directs and ex¬
ecutes); the International Coop¬
eration Administration

(successor

*An address by Mr. Waugh
Overseas

.York

Press

City,

Feb.

Club

19,

of

before the

America,

1959.




New

take

us

the

for

credit

a

establishment and expansion of a

mill.

steel

agents'

From

records

credits of $61.5

mill,

its

Acero

development of that
owner—Compania de

del

S. A. — spent an addi¬
tional two dollars for supplies and

Pacifico,

services in the United States. That

the

that

means

loan

Bank's

of

million brought orders to
country totaling $184.5 mil¬

$61.5
this

lion.

the point in another

the Bank's assistance to the

way,

in

the

of, 7,807 individual
with
780
suppliers in

or¬

mill

steel

Chile

resulted

placing
ders

United

f

the

States.

com¬

received its first loan from
the Bank in 1951, it was largely
owned by the government. Gradu¬

pany

has been trans¬
today the mill is con¬

ownership

ally

ferred

and

trolled by
It

private enterprise.
on Saturday, Jan. 31 that

was

two of

our

Directors were in Pitts¬

burgh and made an inspection of
the
Lewis plant of Blaw-Knox.
mill

orders

found

we

steel

for

a

major one—is to maintain a study,
growing economy in the United
States. Our ability to extend aid,

Chile; and Donawitz, Austria.
I asked the Plant Manager what

first

"The

the

offer

to

imperative

—

and

which is

capital

so

badly needed in the newlyemerging countries, is conditioned
our

upon

prosperity
them

domestic strength. Our
also helps to assure

market

a

movement

The

their

for
of

output.

is,

goods

of

equipment

Monterrey, Mexico: Huachipato.

to

of the work in the
represented by these
orders, all under Eximbank fi¬
nancing.
The answer was 90%.
percentage

plant

was

President

The

without

Blaw

of

-

Knox,

that this

said

hesitation,

course,

plant would not be operating if it
did not have the 3 orders referred

movement

to.

closely related to the
of
capital.
Not only
must we import in orded to ex¬
port. We must import to keep in¬
vestment flowing
overseas.
For
without the prospect of returns,
the expanding flow of private in¬
vestment is impossible."
We see,

therefore, why the sta¬
bility of the United States is Eco¬

then went

He

the

some

had

that

on

to

say

been

that

another

Monday

following

plant

closed

for

to Spain, also
financing.

be shipped

to

orders

ated

which

under Eximbank

additional

of

have

contributed

Obvi¬
gener¬

billions
to

Africa,

America,

assisted

has

Europe, Latin
Oceania, the Bank

the

development—in

addition to steel mills and electric
power

iron, copper, nitrate,
and uranium mining:

of

—

manganese,
cement

mills; fertilizer
plants;
plants; innumerable

chemical

types of industrial plants;
scale
irrigation
projects;

largehigh¬
ways; ports; and public works. As
we
have seen by example, the
-

immediate
has

been

result

to

thousands

these

of

credits

provide hundreds of

of orders for

dustries

throughout the country
and many
millions of hours of
employment for American
workers.

this

But

is

all.

not

While

directed to make loans which offer

"reasonable

ment,"
policy

has

Bank

for

repay¬

made it

borrower's economic

position, and,
increase his
earn dollars
trade ^with
the United
Thus
our
development

wherever

country's

possible,

ability

to

have resulted in

credits

From

<

has ; ex¬

markets

overseas

brief

rather

this

economic

which

growth
abroad
panded
U. S.
permanently.

report

be able to visualize the
importance of a national institu¬
tion such as the Export-Import
may

you

Bank to
I

country's foreign trade.

a

hope I have been able to make

clear how the Bank's development

credits have been designed for
dual

with

importance

the role

of

Bank

Export-Import

in

of
the

Export-Import
paramount for
Eximbank

United

the

Eximbank

let

me

tive.

ment—whether from

tion

understood

even

not

well

by many knowl¬

edgeable people. I speak with ex¬
perience on this point for I have
devoted

since

I

a

large share of my time

came

to

Eximbank

ex¬

many

been

loans

In

are

has

are

sense

"tied."

But

perspec¬

"tied" for the

of

to

our

Criticism of

borrowers over¬
this policy prob¬

ably arises largely out of misun¬

derstanding.
When in India in October of last
year,

I was

alore and

asked

both at Bang¬

Madras whether

or

not

it would be possible to use a por¬
of

the

Eximbank

credit

for

to be made either in
Europe or Japan. My answer was
that we certainly had no objection
to the purchases being made in
the areas referred to, but that we
felt that the countries in question
purchases

Spain,

Japan,

Italy,

and

States economy.

been

this

another

you

in

and

Austria, you begin to understand
the strong support which ExportImport Bank credits give to the
United

years.

sometimes

assisting the United
States economy which, as we have
just seen, is of vital importance to
our
friends
abroad.
I
submit,
therefore, that "tied" loans in the
sense the term is used here, are a
seas.

source—is

has

Bank

Our loans

purpose

sufficiently appreciated in
the United States, in part, I be¬
lieve, because its activities have
not been sufficiently understood.
This is due possibly to the fact
that the art or profession of mak¬
ing loans for economic develop¬
international

allies

and

support of the

States.

give

been

or

in

questioned
for making
"tied
loans," meaning that its loans are
restricted to purchases of equip¬
ment and goods manufactured in

blessing

national

friends

is

latter activity that the role of the

international lending field has not

a

our

It

well

Other Examples
Here

are

amples:

couple of other ex¬

a

Bank

the

has

made

a

number of credits in Japan to as¬

sist the

expansion, greatly needed,
in that country.

of electric power

We know that two of these

totaling

million,

$16.5

credits,

generated

orders in the United States for ap¬

proximately
orders

$25

million.

These

distributed among 40

were

companies in 15 states.
In Brazil

extended

a

two ago we
credit of about $1 mil¬
a

year or

the
bor¬

assisting

of

purpose

abroad, by leaving them in

rowers

position than before
made, and by im¬
proving
United
States overseas
markets. This Bank accomplishes,
therefore, the same goal as other
lending institutions of assisting
the economic aspirations of other
a

stronger

the

loan

was

countries; but, in addition, it does
so
in a way that strengthens the
economy of the United States, and
this, as we have seen, is of the
greatest importance to our friends
and allies.

said

Having
to

mean

all

I do not
I think the

this

imply that

Bank is the only
that should be in

Export-Import
type of agency

the business of international lend¬

the

high

a

years to make
would improve the

many

which

loans

of

assurance

the

expansion of steel mills in
Mexico, Brazil, and Argentina—as
as
Chile—in Latin America,

a

domestically

the

Export-Import Bank by statuteris

or

maintain

ourselves

with

When you

S. in¬

U.

ing for economic purposes.

both

S.

U.

Asia,

and

recall that Eximbank
has assisted the development and/

level of business activity, or trade,

com¬

1958.

In

time would be reopened and

re-employ some 600 men as a re¬
sult of a recent order for steel
rolls

disbursements).
these credits have

ously,

States.

this

when

Incidentally,

in various stages
of manufacture and for shipment

not

funds,

Let

There

it is today, a

or

Economic

Keep Economy Growing

overseas.

come,

was

Here is what he said:

Growth."

and

banks,

of important

source

International

of

tives

will demonstrate

cus¬

emphasized re¬
cently in a speech by Under Sec¬
retary of State for Economic Affaris Douglas Dillon, on the sub¬
This

ing agencies

unilateral agency and

best

another.

that is that the international loan¬

principal international lend¬
ing arm of the United States Gov¬
ernment.
Since 1945 a variety of

United

the

financial support by one means or

1945, it was the only
institution of its kind. It was, and
the

in serious

be

their

either

is

States

will

because

with examples,
this point.

analysis,

lowing

is

it is necessary to

Pay Back Dues

multibillion

maintained

States economy is not

but

economy

rather easy to understand that the
benefit has been great.
The fol¬

To express

contrary, if the United

the

States

(an

billion

SI.6

nomic Law Number One and why

Export-Import Bank

in

stitution

the

to

free world.

relative degree to which

the

vital

is

States

United

the

wholly-owned ject of what he called "Impera¬

the

with

experience
during
years—first in the
Department of State as Assistant
at Secretary and later as Deputy Un¬

Brazil which made pos¬

to

loans

support should be given the inter¬
national type of agency as com¬

pared

throughout

opment

with which the
is confronted, in

opinion, is the extent to which

my
Samuel

eco¬

nomic

problem

Administration

large

scale

varying
economic founda¬
tions. But, as a dictum, we may
say that the economic stability of
and

On

Secretary Dulles told the Senate

its

types of national economies. The
problems of Latin America today
are indicative of uneven situations

Fund.

mark.

The Export-

various

the

of

because

United

the

benefit

credits

Eximbank

which

extent to

the

accuracy

and

mitted for

year,

dollar which the Bank loaned for

will not be

growth

of

rate

this

Cooperation Ad¬
which administered

be

To

pin-point

$6.6

some

additional

with

estimate

to

sure,

develop in accordance with

aspirations.

difficult

their

our friends and allies
will be able to grow and

broad

is

credits

billion

individual

i,buu

disbursed

activity in recent years,
including the past rather difficult

Contribution

Eximbank's
It

some

business

Export-Import Bank.

purchasing
available on our
million to the in¬
tegrated steel mill at Huachipato,
Chile, we know that for every

economy,

abroad

the Economic

to

the free

of

uniform
Last Feb. 12 the

world.

the

of

experience
I have
thoroughly: the
fundamental basis of the economic
this

learned one lesson

Congress.

members

types

governments

From

committed to both types and

are

to

of financial and
economic problems facing the var¬
different

in

recovery,

repre¬

330,000 miles, and have come into
direct connection with most of the

providing similar assistance to
underdeveloped countries. Addressing himself to the question
as to the division of our aid through unilateral activities and

sufficient

made

had

part due to United States aid, that
they were now in position to fi¬
nance the purchases made in their
respective countries. I submit this
is not an unreasonable position to
be taken by the Directors of the

traveled

sentatives of many more,

efforts should join us in

our

the

to

talked

countries,

successfully aided by

Eximbank's head urges that economies

foreign

call the

Aid and Role of Eximbank

"

.

(1088)

world

are

very

We all

needs of

that the economic

know

great, and in

regions, desperate.
These
require therefore, varying

some

areas

types of financial assistance.
-

.

Prefers

Grants to

t:
"i-y

.

Soft Loans

opinion, still a
need for grants or so-called soft
loans in our foreign economic as¬
sistance program.
An effort has
been made, through the creation
of the Development Loan Fund, to
make project loans on a soft-loan
There

is, in

in

basis

my

areas

not

covered

either the Export-Import

International

the

Bank

by

Bank
for

or

Re¬

construction and Development. To

orthodox training,

my

in

certain

instances grants are preferable to
soft loans—that is, very
loans

in

made

long term

dollars but repay¬

able in local currencies and at low

grain silos, desperately
needed in a relatively poor sec¬
tion
of
the
country to
enable
farmers to store their grain crops

interest rates.

have
often
rotted before they could be sold.
This credit brought orders to 29
plants\ in 16 states, and affected
80,390
Americans
employed
in

ternational, to make loans in the

lion

for

which,

until

now,

There

day,

field

its

25

years

loaning agency to¬

of

States or in¬

so-called social overhead

ing, school, hospitals, and so forth.
The President's Emergency

Taking these examples, you can
see from the following two figures
to the United

no

purposes—that is, low-cost hous¬

those factories.

how important

is

either United

the Bank has been
In

States economy.

the Bank has made

is

the

only

source

Fund

available

at

present for grants, and this is of
course

amount.

definitely

limited

in

Volume

189

Number 5826

...

The Commercial and Financial Chronicle

(1089)

monly known as featherbedding—
which
hang like
an
economic

A Realistic Solution (01

-

albatross

Complete Recoveiy

horse-and-buggy

President, Association

of American Railroads

~

I

ati|1S brotherhoods

aA

sick railroad
industry means
sick
economy. And sick rail-

a

roads

mean

national calamity,
*It could not be otherwise with

an

a

industry

pumping
billion

$10

a

The

C ono

my's
bloodstream
that

ities

hose
of

materials
d

n

ers,

Daniel

P.

Loomis

million
tries

.

in supply indus

workers
.

whose stocks and bonds

.

the

and

whole

held

this is only

the beginning.
Modern railroading has enormous
undeveloped potentials. Given a
chance to

real

another

...

facil¬

of

postwar investment

a

consumers

Yet

q

of

a

country.

;• n e w

uipment
intimately af¬
fect
the
jobs
e

the

woven

pattern

new

of

out

worth

be

have

billion. This private capital
spending, made in the face of the
most
forbidding
obstacles,
has
changed the face of railroading
and
provided greatly improved
service at low costs for produc¬

a

Americans

a

Railroads

earn

decent liv¬

a

ing and rise to their full potentials, the railroads can and will

give the nation wonderful new
levels of streamlined service and
provide a vibrant nucleus for a
dynamic American economy. •
nation,
Jbis is the choice before us,

by still another million
people
whose trains carry 400
million passengers a year
and
whose freight cars are the great
are

.

.

.

.

burden

bearers

bringing
clothes
all

and

in

the

do not wish to

I

problems':

our
new

ously

eat, the
burn

we

the fuel
other things

wear,

.

we

we

use

daily home and work life.

our

Yet

the food

us

we

.

the

of

.

.

dwell

on

but to hold out

hope of recovery for a seri¬
afflicted industry — new

hope for
portation

brighter day in trans¬
for Americans every¬
where. I hold out hope of healthy
and
vigorous railroads, making
rising contributions to the nation's
economic vitality and national seeurity,
and
spreading
greater
prosperity outward to all busiThere
before

are

challenging horizons

This is the most excit-

us.

ing and promising era in all of
transportation's history.
Almost
daily, miracles are performed by
transportation men of vision. The
world

is

preparing to conquer
space. We fire missiles and

outer

satellites
stand
new

into

the

heavens

the threshold of

on

a

and

wholly

what

ironic

an

and

policies

deva-

the

over

past

start

made toward solu-

was

tion last year in passage of the
Transportation Act of 1958 and
repeal of the price-inflating Federal excise tax on freight shipments. But you know, as do we,
much

done.

remains

more

Before

us

tougher, yet much

to

lies

now

be

the

meaningf"1 and rewarding job to be done
more

get

with this

on

job

of

putting

realism into government's

some

railroads

cannot

America's
their

resume

mired down and earthbound

which bleeds off rail revenues
through blinding taxes, then apPlies these to the subsidy and pro-

on

the

world

we

live

in!

How

motion
This is

f °

Sick of Being Sick

If, you
are
railroad

about

assure

tired

that the railroads

you

of

telling

you

about

are

their

the

causes

to

come

of those troubles.

iron

grips

with

Let's

those

competing

better

fact, I don't think the

waTto ruin" thereLads

eri

so.

While railroad

t+^s

\°
will

carriers.

sorry way to run a rail¬

f,e^2rh ™1"J*1

problem

child of the American
economy.
But let's be realistic.
Let's all—everyone everywhere—
get sick and tired for once over

of
a

In

road.

tired of hearing
problems, I can

in¬

our

will, what half

you

a

year

could

of

bad-order

cars

as

not

purposely to do
men

are

going to

a

H JL
alone

give

ijS"*
p ?

us

the

clear

trac^ to greater progress which is
country s privilege. There is

another area of festering and
Only then can railroads regain cancerous growth which must be
their rightful place in the national
cleaned out before our full poteneconomy.
And by that, -1 don't J^a caJ1 ^ reached. In this area
mean rising from a sick bed to a
*ies
9Pporlun1^
£reat
wheel chair.
I mean becoming a
Progress with consequent benefits
healthy, vigorous progressive rail- I0,,
or'.. management,
shareroad industry again, making the holders, shippers and, indeed, the
causes

contributions to

an

expand-

*An address

by Mr. Loomis before the
Meeting of the National Asso¬
Shippers Advisory Boards, St.
Louis, Mo., Feb. 11, 1959.

And

horse

the

made

to

half

the

quired.
"red

time

On

formerly
where

runs

speeds exceed 75 miles

the

day's

wages

But it makes

a

roading—and what it could

fixed

workrule

senger

train now covers the 900
between
New
York
and

to

our

customers,

mean

suppliers
and to the national
economy!
Featherbedding by any defini¬

miles

tion is

the

a

our

net loss to all America.

It

briefly

Chicago in

frame.

about

16

railroad

by no
days' pay

A

hours.

time

changing crews and
on
piggyback and hot¬
freights. The system prac¬
tically invites competition, not so
burdened, to nibble away at our
shot

traffic.

pays

the ruinous

pay for each crew position on the
16-hour run.

inflationary spiral.
helps impoverish and weaken

It

the
to

railroads,

means

investors and

out

of

westward

on

domain

another

and

fast

A

run.

train

times

all those who

depend

railroad

on

purchases.
I

that for the good of
America,
something
drastic

days'

pay, nor even for nine. The
carrier's costs equal
a
total of

10%

be

done

about this destruc¬

days'

for

pay

crew

This
tive

system is

that

I

doubt

if

one

have devised anything more likely
to kill off its practitioners.
As

tbe-work rules

to postpone revisions
working rules expires on Oct.
31. This poses great opportunity

rake

every

dollar

of

sults.

Little

remains

for both labor and management to
break out of these chains to the

in the way of

let

customers

bring this subject
down to specifics and show what
featherbedding
really
is.
The
practice is concentrated
among
me

certain classes of train operating
positions, which account for about
one-fourth

of

The

most

are

three
as

total

employment.

damaging

areas

carries

How

mileageday pay system which siphons off
virtually all the benefits from

for

penalty.

It be¬

instead

of

a

can

the railroad busi¬

bloodletting?

How long can the great majority
of rail employees
tolerate such

ing

to

their

advance¬

own

How

long will our cus¬
countenance
accompany¬

tomers

another

up-pressures

on

prices?

our

path

service

—

in

a

to

enhre American
What

economy.

of




I refer

yard engineer.
yard crew making a 4-mile
round trip to help a freight train
through snow got extra pay for
A

miles

100
-

to

service.

of road

Can you

think of

faster

a

now

burdensome

to the wasteful and

work

rules

—

com¬

way

How long can the
bear
such
a
deadly drag? Here is a system
geared to inefficiency and bun¬
gling, to delays in moving your
shipments, to the most indefensi¬
ble waste. We cannot continue to
broke?

go

such

carry

And

economy

back-breaking load.

a

neither

can

nor

you

the

public.
Cites Classic Rule
Now look for

classic

a

moment at that

rule—one

featherbedding

Continued

on

page

22

the claim-to-work rules

that ban road

crews

from

•

•

working

..

•.

in yards and bar train crews from

district

crossing

seniority

and

Capital Gains In Stock of
Life Insurance Companies

boundaries.
Third
ments

are

for

the senseless require¬
useless
crewmen
on

trains and other equipment — for
firemen who tend no fires and

11

extra

||

brakemen

handle

who

no

The

15,000 shares of Colorado

dual

stock dividends

mileage-day
pay
a glaring anach¬

standard is itself

ronism.

While

to

be

a

now

with stock dividends would

be

1949

at

$3

42,000 shares currently $12

and

now

Casualty

bought

in

1952

per

share,

with

We

do

not

share,
bid $100 asked

at $30 per

be 11,100 shares currently $97

m

8

Many
from

to imply that these examples were recommended by us nor
this kind are recorded frequently.

mean

that gains oi

available
higher interest rates and lower mortality.
opportunities

fi

for

capital

gain

are

Careful Selection

II
For
ivy.

an

is

due

to

i

bid $14 asked

10,000 shares of National Old Line bought in 1952 at $2 per share, with stock
dividends would now be 60,000 shares currently $2$ bid $30 asked

increased

i
i
i
II

income

Necessary

Analysis covering 60 Companies and Spe¬

cific Recommendations return the attached coupon.

m
m

150 miles.

One doesn't have

would

Credit Life bought in

1,000 shares of Federal Life

modernization

ahead throughout the rail¬
road
structure, this 40-year-old
work rule clings like a leech to
the carriers' body, draining away
its
lifeblood.
Simply stated, it
provides that when locomotive
and freight train crewmen cover
100 miles, they must get a basic
day's pay. Passenger trainmen put
sweeps

in

KNOW THAT:

DID YOU

£X;

brakes.

rail¬

road expert to see what is wrong
with such

a

system. When stand¬

ardized in 1919, it had a perfectly
reasonable basis. That was the day
of the plodding steam

the

Featherbedding Means

rules

freight yard—the job claimed
the work rules to belong

Model

biplane.

A

T

and

run

of

|

Specialists in Insurance Stocks
25 Broad St., New York 4, N. Y.

locomotive,

the

100

wheezing
miles

in

Ralph B. Leonard & Company, Inc.

8

N

freight
about

service

eight

did

hours'

indeed

time.

take

And

a

|

CHRON-3-5

||

Tel.: Dlgby 4-1485

j|

.

,,

'

jfp

(Please Print)

Annual
ciation

the

instance,

a

streamlined

of

for

pay

under

nation's

long

days

road freight engineer for
moving his train a few car lengths

thus

withstand such

ness

ment?

First is the antiquated

dividends

blessing.

obstacles

follows:

remains

price reductions for

curse

a

other

three

—

pay to a

re¬

Modernization

built-in

a

for

nothing

and

shareholders.
comes

that

the

two for the yardman,
for the roadman!
task

In

virtually

benefit

employees—and

past.
Damaging Areas

off

outside

forced payment of an extra day's

railroads step up train speeds and
streamline service, these restrict-

in

That's

done.
one

agreement

line

on

not do but claims he should have

could

one

payipg three
thing done. For

one

yard limit, while a road employee
got a day's pay for work he did

self-destruc¬

so

grave penalty
This can even

railroad's

a

tq .get

minutes

few

each

position. By contrast,
a
bus driver generally works a
full eight hours for his day's
pay.

say

tive growth. And 1959 is the year
of
decision.
A
three-year-old

basic

engine

at

example, in one referee's inter¬
pretation of the rules, a yard em¬
ployee
was
awarded
an
extra
day's pay for working a few

Again, the pay-out is not for two

insidiously at our com¬
position and ulitimately
destroys the very jobs it seeks to
protect—both for railroaders and

crews, with each
work in the other's

to

railroad.

lead to

covers

between

yard

except

the

to

also loom

walls

and

forbidden

to

expand

to

High
road

days'

the 1,034-mile trip between Chi¬
cago and Denver in 16V2 hours.

capital
improve

It gnaws

must

basic

equity

petitive

all

move

en¬

virtual freeze-

a

plant.

So

Or

nine

over

the

No, the carrier

new

the

needed

fewer returns

for

lost

is

cabooses

But

means

just two
gineers' services.
pay

times

about two hours. And think what

pas¬

puts pressures on our rate
structure and bids up prices to all
consumers. It is a handmaiden of

must

ago has to
engine crews
along the
Chicago-Denver run

change

different

seven

That

passenger

while

a

„

at what happens
when train speed rises within this

Look

and

cited

way.
That
requires eight different engine
crews, each putting an average of

in

volume of additional investment
in modernization could do to rail¬
a

I

stop

train,

earned

locomo¬

no sense now.

York-Chicago

train

re¬

hour,

an

are

steam

day.

less than two hours.

payroll. Or think of what such

basic

when

sense

New

the " choice

of

some

apple"

free

a

tives covered only 100 miles or so
and took a crew's entire working

and

passenger

be

division have the right to man all
trains in that area. This may have

remained

on

should

open

crew through a
division changepoint, because rules say that em¬
ployees
within
each
walled-in

hitching post.

Employees

what

on

track. For instance, we
generally cannot run one train

through-freight train sfound
themselves completing runs in up

'

Vital

blocks
and

as

rock.

a

iron

1919

a

They remained

the deep-down roots that are modernized motive power and The future of this vital industry
rides on the answers.
tapping the industry's strength stepped-up train speeds.
and
spreading
its
weakness
At the same time revision is
Second are the towering juris¬
made in the old dual pay
throughout the economy,
system,
dictional walls that stand rockIt is imperative that the nation
something
must
also
be
done
hard in the

rightful position and make their
tallest contribution under a pol-

empty will be the glory of landing on the moon!

employed in

not.

be¬
each

of \Work

will do. These
separations hit the railroads and

on

stating failure in human progress
if, we conquer space, only to become

and

men

did

drawn

lines

kinds

group of employees

Yes, railroading changed as all
America changed.
But
the
old
inflexible

rigid

the

the general public especially hard
because
they
pose
indivisible

doubled.

rules

the

tween

ancient

systems, faster roll¬
ing stock and straighter, freer
right of way. Freight and pas¬
senger
train
speeds
nearly

evaporate and vast num¬
bers of laid-off men put back on

But

Praises Start Already Made
A

the

if plowed into repair work.

Three

transportation policies.

form of transportation.

But

portation

now

back-log

half century.

that

all America.

of discrimination that

have grown^ up in publm trans-

a

and to

nesses

before America. It is the nations
decision as much as it is ours,
For
railroads, acting alone,
carmot possibly solve the crushing
problems

and—

would

of $14

million

purchases

will

results

marvelous

em¬

ploys nearly

The

Americans.

effort.

to

billion extra dollars

mean

that our
citizens
have a right to expect.
The rail¬
roads intend to fight toward that
goal. And we ask for your help
and the help of all thoughtful

the

annually

about

passenger

now

traffic control

tied to

a

America

year

through

w

ing

strides in technical im¬

dustry.
Imagine, if

continued; transportation-discrimination be
ended; and burdensome taxes lifted.

.V>. -r/'

made

modernized

women

Mr. Loomis also asks that the start made
by Transportation
Act of 1958 be

■

industry

advancement

::

,ir

rules

inflex¬

and

in

are

history. Along came great im¬
provement programs—streamlined
d i e s e 1
locomotives,
electronic

important — act as a
deterrent to further
progress, as a
job depressant and a barrier to

progress" to productive work for the good
of labor, the
economy, nation's defense and rails' recovery.
u\

,

and

equally

join management in this request so as
a $500 million annual "albatross around

put what he terms
the neck of American

••••: r.i

40

work

fixed

the

miliion

$500

to

to

of

miles

required 7%' hours.

But those times

of

provement. These outmoded rules
now
constitute
an
immediate
drain on the industry in excess of

an

commission to end "featherbedding." He asks five train-oper-

.

while

enormous

all-out call to unleash the tremendous
potentials of railroading
in his
appeal to President Eisenhower to appoint a special

t

ago,

remained

ible

has started, A. A. R. head sounds

recovery

the

years

have

Washington, D. C.

Noting rails'

,

neck

era

more

By DANIEL P. LOOMS*
if" '

the

.

American progress. Rooted in the

Rails'
1..

around

150

of

run

service

13

Address

£y;.-S-ySfS/S/.i,'S-VSSS>.\-yS/SA-y/A'\V.-sySSy\W-ySS/SA-V/fSS.<^

:

§|
||

The Commercial and Financial Chronicle

14

.

Thursday, March 5, 1959

.

.

(1090)

k Business 0i Leber Responsible

and Inflation

For Low Output
By JOTHN E.

Vice-President, The Chesapeake

about time

Concerned

spent

KUSIK*

and Ohio Railway Company

on

problems of conflict with

opportunities in

of concentrating on major

unions, instead

;

Telle

is

fixed

in

order

shift

away

their

from

in

role

own

raising prices.

can

L.o and behold,

to

introduc¬

tion of

a

is

Kns.k

Jonn

powerful

union

It

the

of

most

groups.

effort

an

from

absolve

to

unions

responsibility for the
Inflation. The role of capital and
any

in

management

the

growth

of

productivity during the last dec¬
ade is largely ignored. The urgent
of

need

adequate compensation
for risk capital is ignored. Like

propaganda, it is

a partisan
It is rather like
big, bad wolf posing as the
grandmother to Little Red Riding
Hood to the tune of "Rock-a-byBaby!"

most

piece

of work.

the

Losing Major Opportunities

However,
of

think of it,

as we

that too

conclude

must

management

often

we
we

taking
part in this game by spending
perhaps too much time on prob¬

men

lems

by

of

are

conflict with

unions and

concentrating

not

enough

on

the major opportunities before us:

motives

Our

and honest

be

may

sincere

as

those of union lead¬

as

Yet, as long as men of man¬
agement are not taking the initia¬

ers.

tive

in

vigorously seeking
cooperation, they must bear their
more

share of responsibility for lack of
better results.

Unquestionably, inflation is a
danger and productivity

we

can

create increased wealth

distribution

shares

for

The

increased

of

all participants

production

in the

process.

assignment

which

I

have

undertaken fere is the discussion
of

opportunities

of

growth, through
leadership.
The

productivity
management

of

wealth

vestment

in

facilities

of

produc¬
tion and marketing and through
organization. Money works
through a continuous process of
conversion

of

cash

into plant fa¬

cilities, wages, raw materials and,
ultimately, into finished products
services. These are reconverted
Into cash when sold to users.

or

For

profitable

*An address
Northern Ohio

Conference,

which

habits

This

II.

taken

have

illustrated

the
companies of

is

by

proper

balance

in

of having adequate propor¬

anything.

The

well

as

very

a

business

by Mr. Kusik
Personnel

Cleveland,

opera¬

before

and

Ohio.




the

Executive
.

-

pe¬

other

interruptions as
liberal attitude in

paying for other time not worked
such as illnesses and absences for

the personal reasons.

tion of the best and most modern

of

and

riods

much

plant must be
adequately

The other

reason

in most

between

times

departments,

accompanied

modern and it must be

almost

maintained.

some¬

conflicts

by

labor.

When one stops to think of the
lavish way in which capital is
used in

America, it becomes clear

that here we have another

major

opportunity for increased produc¬
tivity.
Under the 40-hour week
prevalent in most industries to-?
day, billions of dollars of capital
are utilized only some 2,000 hours
out of the more than 7,000 hours

as

severe

as

Bettering Company Management

been

We

time, they have been trying to get
in wages more and more. Obvi¬

come

of the third
of systems

and

now

to the

discussion

with

those

The third reason for this lack of

has been the difficulty
of setting standards and mechan¬
izing this work. It was only the
progress

relatively recent advent of largeelectronic
computers
that
opened up new, undreamed of op¬
portunities.
They
are
actually
forcing the breakdown of rigid
departmental viewpoints.
With
new
opportunities now
scale

linking together capital
These

systems
consist of the organization struc¬
ture,
such
as
departments and

divisions into which people are
ously, the wastes of this process
fitted; organization of work flow
are
appalling. They include lost between combinations of
people
wages and lost productivity and
machines;
organization
of
through strikes.
supervision
and
communication

Sliehter

Dr.

placement
ployees

recommends

re¬

of the present

contest
and em¬

managements
with what he calls

"or¬

ganized cooperation." A case study
spectacular achievements pos¬
sible through cooperation of man¬

of

agement
the

and

record

labor

of

years or so.

done
you

so

read

already,
in

offered

by
coal industry
during the last
If you have not

the

and John L. Lewis

eight

is

the

I

suggest

Jan.

17

that

issue

of

the

"Saturday Evening Post" a
stimulating report on this record.
What

then,

I ask,

is wrong
with the expansion of the appli¬
cation

may

of his idea

when all of

looking for major
crease
productivity?

are

ways

us

to in¬

for direction of work

unit

and report¬
A very sub¬

,

which

unchanged.
On

the

has

survived

almost

,

other

hand,

business

a

organization,
to
be
successful,
must be designed to create new
needs and, in turn, to fulfill these
needs.
Its capacity to resist de¬
terioration
and
its capacity for

productivity growth are depend¬
the strength of its spirit

ent upon

of

innovation

—

terms of research

innovation

in

development of

stantial

products and services, new
of doing things. Some dra¬
matic examples can be found in

this

the

ing of performance.

proportion of activity in
consists of the design
and layout of systems in addition
area

to their operation.
While this area probably offers
one of the most important
oppor¬
tunities

for

raising

productivity,
time, most fre¬
quently neglected. In my opinion,

it is,

at the

same

it is

of

result

a

technologies

new

This is why there is a growing"^
efforfc*on the part of managements I

provide training and upgrading

to

workers

of

mote >

production

pro* >

in

which

cesses

new

ways

appliance field where manu¬

facturers cannot be content mere¬

ly to make substitutes for exist¬
ing products.
They created and
a,re
satisfying demands for all
sorts
of
new
things from hair
dryers to television
sets, from
home

air

conditioners

the least productive area in
business organizations. Generally,

phonic

it

underbelly, their
Achilles heel. And yet, in a typical
manufacturing and selling com¬
pany, the cost in wages and other
expenses of this area are probably
greater than the cost of the direct,
blue
collar work
of
converting

linked

to

stereo¬

these changes is a

changing

are

and't

;

becoming more complex. "This Us
why the government has stepped J
in to provide various cushions -to i
ameliorate
unemployment. - In¬
dividual

companies

cannot

bear

the burden alone. It is only properl
that management and government
should

respond in these

effort

no

less

to

give

favorable

iri f
beings

ways

human

treatment

than

machinery, which
is also displaced and made obso¬
lete with the progress of tech¬
nology. It is a way of breaking
is

accorded

to

to- itiMr/ba"
>of
management to reach out in an i
ever-widening arc of effort .lor
convert the forces of technological \
development and innovation into !
factors of stimulation and great
down

major

one

barrier

novation.
It

should

be

the

purpose

growth of productivity.. In your
organizations, is this spirit o^inr
allowed

novation

full

their

soft

;

high

corders.

The

fidelity
result

tape
of

re¬

creating

without

our

swayr

knowing it?

Expanding Demand

Now, fifth, productivity growth!
through expanding demand. It is
obvious

that

business

growing volume bf
raises product

itself

in

tivity of the other elements in art(
important manner.
It is alwayswork out of a'
business organization and its fa-'"
cilities during a period of rising ;
economic activity. Now, of course,
we
know
that some growth id?
demand
takes
place
somewhat!?
automatically through the growth!
of
our
population, through thfto
growth of our
economy
as; a:-;
whole.
It would be a mistake#?,
easier to get more

however, for
ization to

on

busines organa passive attitude?
automatic business!

any

take

count

and

growth. For a business to
successfully and to get its

growl

sharp]

of

growing markets, high calibre (
productivity is required on the'
part of its sale function.
' ;
By sales function here, I mean,/
much more than the operation of
sales departments.

I am

thinking

productivity- of the «al%,
function of the organization as. ftg
whole. This would include in acU j
dition- to the operation of sales j
departments, all other productiv¬
ity areas that lead to development^
of better products and services
the lowest possible cost. The com¬
plete success of the sales function
can
only be the combined result
of
harmonious
operation of -alE*
elements
of
productivity.
Thifi;'
means
keeping
pace
with the'
growth and changes in the econ-/
omy. This means reaching out for'
a growing share of available busi-lrt*
ness.

This

means

and"!-

willingness

ability to provide

funds for hew;

aritt;*

facilities for immediate needs
for

changing requirements
must
be foreseen
several

which 4
years

^

ahead.

Managements must
that everything

tain

make cer*
possible is

being done to channel
customer

demand

expanding

into

a

power¬

productivity growth.
Are we getting our rightful sharrt
of the growing available business?
ful factor

of

f i. rr

•

higher standard
of living for all of us.
Some few, too few, labor unions
have recognized that, in the long
run, the prosperity of all of us is
to

novation

the

success

efforts.

of

There

our

in¬

Stimulation

of

Alert

Labor j+s
f

Now,
ment

—

ment

as

'

I

t

iT

to take up the last 'elfe4y
productivity of manage¬
a

whole.

We

all

know

in¬

are

j

the

of

..

is

-

make them

to

employable

to /
make its share oj: contribution to j
of the
growth of productivity? ; Are f
to
any services and facilities grow«>
of
ing obsolete and less productive;!

element—productivity

manpower.

,

as

an

panies is in jurisdictional jealous¬
ies

-

why more and more business or-;
ganizations operate
systems SDiU
separation payments to their longservice employes put out of work

com¬

•

between

creating in¬
requires - putting
money to work.
Money is put to
work through people, through in¬
process

creased

work!

in

First, productivity of manpower. available in the course of a year.
you
know, productivity of Accordingly, is it too much to available, is the management
that some day we might your company on the way
manpower depends on a number hope
double utilization of capital in¬ secure
of factors:
higher i productivity
vested in industry?
This should systems linking together capital
(a) Product ion tools made
not be too difficult a target since and
manpower? Are departmental
available
by management.
The
it still would provide for only a barriers
being breached? Is work
better the tools, the higher the
little better than 50% plant utili¬ going on to stiffen the company's
productivity.
zation.
soft underbelly?
(b) Skills and other abilities
In
the railroad
industry, the
acquired through training oppor¬
Innovating Ability
situation is very similar. Although
tunities provided by management
a
railroad
operates around the
Fourth, productivity of innova¬
or
otherwise.
The higher these
clock the actual use of its phys¬
tion effort and maximum utiliza¬
abilities, the higher the produc¬ ical
plant is relatively low. One tion of the rapidly moving devel¬
tivity.
can
stand along any main track opments
in modern
technology.
(c) General attitude of workers
of a railroad and wait for hours As Peter
Drucker, well - known
determined by such influences as
without seeing a train go by. Even educator and
economist, put it re¬
physical and mental health, en¬ in
periods of high economic activ¬ cently, business organizations are
vironment
created
by
manage¬
ity, freight cars are standing still the only ones that, by their very
ments and labor unions. The bet¬
90% of the time! It is this situa¬
nature, must produce change. All
ter the attitude, the higher the
tion that has led to much merger other
human
organizations
are
productivity.
talk in the railroad industry.
dedicated
to
keeping things as
How can we eliminate, or mini¬
On the basis of organized co¬
they are. This is true of the gov¬
mize, the barriers to productivity
operation
between
management ernment, the army, labor unions,
inherent in these classifications?
and labor, aren't there other ways the church and the
family.
Certainly, there are many things to arrive at other solutions which
These other institutions are con¬
that management can do on its
would enable us to get more work
cerned
with
meeting
existing
own.
But, as Sumner Sliehter has out of this investment? For ex¬
needs.
For example, the purpose
recently pointed out, labor unions
ample, would not 'shorter hours: of government is to meet the need
have an opportunity of playing a
and higher pay for the so-called
of its citizens for protection and
new
and a more important role
lobster and graveyard shifts make
security. The church helps fulfill
in American industry. This oppor¬
such reorganization of production man's eternal need for inner secu¬
tunity comes from the need to
possible and economically feas- rity and,, since most innovations
reform the present organization
jble? • Why don't men of manage¬ in religious matters pose a threat
of production.
In large part, it ment and labor think in terms
to that-inner security, they are
has been a contest between man¬
such as these when discussing still resisted.
But
perhaps the best
agement and workers over how
higher
pay
and
shorter
work example of how social
organiza-,
much will be turned out.
Man¬
hours?
tions try to keep things as they
agement has been trying to get
are
can
be found in the family
as much as it can. Workers have

holding back to avoid pro¬
ducing any more than they regard
is our arsenal of defense against
informally, or under labor agree¬
it.
However, productivity is also
ments, as being what management
a powerful force of creation. With
is entitled to receive. At the same
it

Effect

facilities and not having too

serious

for

This

through changes

As

pam¬

phlet recently
distributed by
one

at

are

Utilization

Labor

This is from
the

produc¬

of them:

least six

unions."

out

discussion

I sec it, there

As

tivity.

they

surprise,

have singled

its

sense

the

to

occurred

-

super¬

and machinery plus availability in some
capital such as in¬ almost unlimited coffee break

tive utilization requires not only
maximum use of all capital, but
also

of the major elements of

one's

no

turn

now

plant

of

re¬

rooted

caused
by major tech-! j
nological break-throughs.
L'.||
We recognize that management!
shares in this
responsibility for;
the welfare of employes.
This lis!

This place, especially since World War

capital.

effective utilization of all

version of cash into cash.

operation of the business and the
more profitable it is.
This is an over-simplified view
of the job of management from
the standpoint of productivity. We

to

has

ventories and other stages of conr'

needed for the

less money is

of

deterioration

is

other forms of

is necessary that this
process in all of its elements op¬
erate fast. The faster it operates,
the

productivity

means

One

the

is

heavals

this

in

innovations

legitimate efforts to protect the f
membership from the violent up- i

in secur¬

progress

to

where

however,

sistance

in¬

on

visory-control over people.

Capita!

The second element-we come to

..

it

tion,

>

stances,
in

estimated

been

a

ganized cooperation"?

managerial prerogatives.

prices have continued tp
xnove up under a Republican Ad¬
ministration, big business groups
have looked for a new scapegoat

return

has

It

therefore, in seek-; sons for lack of
revolution in management ing higher ^
~
and labor relations through "or¬ area:.-

(4) expanding demand by bettering sales efforts; and (5)
encouraging independent labor so as to stimulate management

"As

and

maintenance
vestment.

ing

contradiction to other institutions;

without trespassing on

laborv

posed of representatives of

capital and perhaps the judiciary,
arm of the government?
But the that of the total payroll of such
conflict goes on as a
cold war companies, as much as two-thirds
even
in times of freedom from may be paid out in the design and
strikes. Losses in times of so- operation of systems linking to¬
•
called labor peace are even great¬ gether capital and manpower.
There are three principal reaer than
in times of open conflict.
What is wrong,

inflation, Mr. Kusik queries
possibly overlooked productivity improvements that include
and transcend manpower utilization. Cognizant of the changed
coal industry's labor record, the railroad official suggests ways
of overcoming barriers to labor productivity and a managementlabor "co-operation" solution. Turning to other reforms, he
also suggests: (1) more use made of—and better—capital;
(2) updating the "Achilles heel" of business organization and
management; (3) constant innovating changes — a life and

making productivity the weapon of

death business matter in

Considering
the problem
of raw materials into the finished
It is probably greater
eliminating strikes, does the an-: product.
than the total cost of capital in¬
swer lie in arbitration courts with'
vestment in terms of depreciation/
a
supreme court of appeal com-;

Continued

on

page

36

i,Volume

b"?:'

189

Number

5826

.

.

.

Chronicle

The Commercial and Financial

(1091)

commentary on something that it' Treasury has had to

ing basis appears to be long in the
The

From

Washington

never

will

C. BARGERON

9iV

group

The so-called liberals

are a con¬

tentious lot. .Take for instance, the

oepats

demand

his

made, with

that the Dem-

-

holdHe

caucuses.

effort

on

the

such

raised

with

contract

canceled

and

a

clip the

Dixon

-

Court

good faith.

of

Claims

to

years

the money.
The electric

which they
It

year

hands

is

ex¬

needed

John C. Curran With

doubtlessly

Van

some

they are
well established now. Rural
Amer¬

down
,

pay more for

co-ops

government support
in their earlier
days but

before

decision.

a

';

ica is about 95%

resisting
tration

Yates

pay

is

efforts

to

the

have

same

of the Adminis¬
the

REA

Van

electrified.

Wall

Merrill Lynch Adds

co-ops

'■

CLEVELAND, Ohio

—

Alstyne,
Street,

Exchange,
C.

Rene E.

Curran is

for the money which they borrow

Faux has been added to the staff

the firm

as

of

Merrill

tutional

and

they

has to

&

Smith

is

ting their

invested

the

in

project.

It

a

pay..

the Treasury

They have been get^-

money

Square.

for 2% while the

Lynch, Pierce, Fenner

Incorporated, 55

^

Public

-V,'

manager

He

ments,

was

Blair & Co. Inc.

'

;M

f

..

publicity and
been

tvwol

on y

three

or :

raid i

o

p r o-

gcams.

Pub¬

licity is what1
he: wanted

to

:

get: lit?
;,.iWhat pur¬

pose" would
c a u

c

Carlisle

Sena¬

Bargeron

tor (Lyndon
Johnson is

leader

Now mailing

uses

serlvo?

'

unquestionably

but

it

is

cuses. would

a

doubtful

strong

if

his

weaken

cau¬

leader¬

ship. He knows the views of

every

Senator on the floor. He gets them
from informal talks with his fel¬

low i Senators in

passing,

they

or

g<>;to;his office.

'

i S »V

1

owners

A! Caucus would not be binding.

<

ItdVcMd

serve

only

of'Views which

as an airing
Senators are

the

known to entertain. Senator Proxmird's contention is that a stronger
civil' 'rights

sulted

bill

from

suming
would

that

would

Senator

have

been

have

" He

caucus.

a

re¬

is

as¬

Johnson

stopped

from

springing the guns with his own
bill,.which is an effort to compro¬
mise the extreme northern and
southern viewpoints. But this pre¬
that a caucus would have

supposes

vo^ed in favor of the stronger bill
andj;..Johnson would have been
fOfpcd ?to support it. It would be
an,.innovation if a caucus were to
coijie; to have that power.
The

Republicans

meet

every

Tuesday after the conference
theiivleaders with

the

of

President.

Thfe conference' is for the purpose
oMhe leaders filling in the other

Senators-on
saidiV

what

There

exchange

of

is

the

President

informal

an

views

but;

Sen¬

no

ator j

is
bound
by - any
rule
the.)caucus may adopt.
Senators,
forothe most part, are prima don-

The story of Allis-Chalmers

essentially is the story of POWER
the creation of Power,
application of Power, the-never-ending search by the Company for ways to improve its
powers of production and thereby better its product lines.
In terms of this pattern, the Allis-Chalmers Annual Report, now being mailed to
59,149 share owpers, presents a broad outline of accomplishments of the Company in 1958.

jiasy Take the situation existing
nowl

At least 14 Republican

ators

opposed

are

the

to

Party unity is much stronger in
th^House. Both parties occasion¬
ally caucus to determine what po¬
sition they will take on a particu¬
But

in

even

the

House

tEu^/caucus is not binding.
cadbus

counting
elgbi

the

serves

HIGHLIGHTS

Sen¬

The
of

purpose

Sales and Other Income

Earnings

bu^j

that

Lewis

L.

con¬
Secretary of Commerce

not until the

signal service in holding back the

ef^prt of the public
.

move

in

the

on

power group

electric indus¬

try * through. government-owned
atomic energy plants.
tAs Chairman of the Atomic En¬

Commission

ergy

great

pressure

he

under

was

to erect atomic

en¬

plants all over the. country
tremendous cost. The private
electric companies have been slow
in,;this field because of the cost
ergy

a£

:

,

28,489,381

19,657,958

Share of Common Stock

17,819,251

2.34

| 2.11
•

1.25

ALLIS-CHALMERS
and the

serves our

nation

growing world through the

many

domestic plants and offices shown here—.

2.00

and

through the world wide facilities

of Allis-Chalmers International.

Outstanding

Preferred stock

"

^

'

103,635

103,635

'

"

8,216,016

8,214,281

Dividends Paid
Preferred stock

•:

.

Common stock

422,831

465,598

10,270,016

.

,

-

public

power
group has given him a good hazihgV Mr. Strauss has rendered a

to

per

Common stock

expected
as

'

■'

Shares

Stojauss will eventually be

firmed

33,189,603

Dividends Paid per Share of Common Stock

<:•

t^Vis

5537,191,443

5535,165,825

Earnings

noses more than anything

»

1957

1958

All Taxes

-

"SXIO

own

Presi-"

dent's tight budget and are voting
with the Democratic spenders.

lar *foill.

...

the

16,374,763

Share Owners' Investment in the Business
Preferred stock

10,363,500

Earnings retained

v

;

.

Total share owners' investment
Book Value per Share of Common Stock

10,363,500

162,088,166

.

Common stock

162,055,251

135,354,664

125,108,613

307,806,330

297,527,364

i

36.20

34.96

★ Sales
•

Working Capital

'

263,557,034

•

Ratio of Current Assets to Current Liabilities

257,661,251

4.82 to 1

4.07 to 1

•

or

Branch Office*

Manufacturing Plant

for copies of the

a

and

the fact that

there is

no

end

of fossil fuel available and atomic
energy is no where
petitive basis.

near

a

com¬

Number of Share Owners*
Preferred stock

802

Common stock

58,347

.

655

Report write

Allis-Chalmers

1125 S. 70th

32,364

employes

St., Milwaukee 1, Wis.

.*35,799

•

down.

The

time

able to operate

when

on

a

it

will

be

self-sustain¬




Payrolls

"

.

*

ALLIS-CHALMERS

172,093,408

.

187,590,363

POWER

FOR

—

Manufacturing Co.

Shareholder Relations Dept.

56,071*

Employes
Number of

fhe Duquesne Power and Light
Co. of Pittsburgh is operating an
atoinic energy plant on a partner¬
ship basis with the government.
It'is an experiment to bring costs

Annual

i

A

GROWINS

52

City,
Stock

John

of the Insti¬

Depart¬

previously

;

of

that

Syndicate

hasnreceived

all ?$.orts

Co.,

associated with

now

from the Treasury as

group

&

York.

announced

having to sue the government now

was

Noel

New

of the New York

members

(Special to The Financial Chronicle)

amount of interest

Alstyne, Noel Co.

4

The public power group is now,

ruckus that

the

in

several

money

pected to be another
the

the part of

to

them

the

for the several million dollars

stir Senator Proxmire of Wiscon¬

sin,! has

an

fiasco.

Dixon-Yates

the

take

back

invested

wings of TV A, whose wings badly
need clipping.
The public power

>

By

was

Administration

the

get

public power group has
forgiven Mr. Strauss for his

in

part
This

Ahead of the News

hats

15

,yt

future.

J:

-

with

26

The Commercial and Financial Chronicle

(1092)

U. S. A.

Lack of Defense'from Missiles

Russia is

in these

Makes Cold Wat Continue
By ROGER W. BABSON

speculates

tremendous scientific advances,

on

space.

Germany all-powerful in
strategic position as the bul¬
wark of the free nations.
Russia

He also ponders Russian willingness to withdraw from
Berlin, allowing free access to combined East and West Berlin,

Berlin

last

column

my

and

the

stock

week

on

market

German

situation

depends

upon

whether either
nation

to

fen d

bombs.
Russia
down

When

If

cure

backs

is

space

stunts.

the

United

found, it could

the peace

for

down

to

more

mun¬

tory this week, quite logically jet is largely owned by Gen¬

'

,

i

■" !■'

*

Zenith

se¬

to

some years

only

way

might

primary work of defense
against all missiles is being done
by Germany.
The world's best
physicists, metallurgists, and en¬
gineers are working on this prob¬
lem in Germany with the help of
Great
Britain, France, and the

willing

be

withdraw

to

from Berlin and let East and West

Berlin

The

•

Radio

M■ ■

'C

:

:• ■

.

v

took

only a
Khrushchev now
sees to
stop this is by absorbing couple of sessions to add an¬
Berlin.
Of course, the Germans other score of
points to its
will not agree to this, nor will
value and Thiokol Chemical, a
Great
Britain,
France,
or
the
fuel item,
U. S. A. Such a withdrawal would rocket
that had
The

come.

her

on

this

mered

dane action. And since Aero¬

terri¬

is

is

atom,

or

and

uncharted

V

mostly about ground-

invention

real

Russia

Germany.

States, Great Britain, France, and
especially Germany, are seeking be suicidal for the West. If, how¬
a ground-to-air defense missile
ever, Russia could find a sure de¬
—and
Germany will secure it. fense against German missiles, she

deitself

against hydrogen

are

France—but

or

into

soar

■

releases from Russia and

missiles

to-air
The

is pre¬

pared

News

the U. S.

Industrial stocks continued
to

with emphasis
settling on is¬ eral Tire, and its flips induced
handi¬
capped and greatly embarrassed sues associated with rocketry equally spirited action in the
by having West Berlin and West¬ in the electronic and exotic
latter, General was also given
ern Germany advance so in every¬
fuel lines.
to more placid ways. The
thing while East Berlin and East
/•
standard tire shares were able
Germany are stagnant.
of

Germany Will Be the Bulwark

I

concluded that the entire Russian-

Britain

Great

or

defense against German missiles.
Mr. Babson dwells on Russian fears of Germany and believes
that the latter's discovery of a safe defense against the missile
will make her all-powerful as the bulwark of the free nations.
In

A.

is truly afraid—not of the U. S.

to possess a sure

were

STREETE

By WALLACE

make

many.

if she

THE MARKET... AND YOU

releases

her

including the anti-missile missile, occurring in Western Ger.

interested

Remember that no
its most impor¬
tant inventions to the public. Such
work is highly "classified."
I be¬
lieve a safe defense against mis¬
siles will
be found.
This will

quering

Thursday, March 5, 1959

.

experiments than in con¬

country

Writer Babson

more

..

combine, with free passage
to all parts of the

seemed at

something of

40

around

a

year

to

give

good

a

of

out

showing clearcut inten¬
forging through their
previous peaks.
j;y
tion of

peak
raced

a

ago,

Utilities Brighten

above 150.

Utilities

Targets and Profit-Taking
The

account

themselves at times but with¬

a
brighter
they had been a
area.
In fact, jit

were

section after

backward

getting wasn't until this week that
some
of these
matum,
it
they
were
able
to
without a Western outlet is crazy
nudge
favorites
as
means
that
profit-t a k i n g
and must be rectified.
I believe
through the high of last Jan¬
her
Siberian
moved in after the industrial
uary and leave them at their
this will take place as soon as all
e x p e riments
average had crossed the 600
with anti-mis¬
nations have anti-missile missiles.
highest point in more than a
line. But the realizing didn't
sile
missiles
Roger W. Babson
quarter century. Some of the
have not been
keep enough scattered blue interest here settled on the
a
success.
chips in favor from boosting southern and southwestern
Surely no nation, including the
it above 610 which, to some,
United
States,
has
a
defense
companies that in the last few
was an initial
target for this
against them.
years have shown a superior
\ V::-v ■'
v:
portion of the bull move.
growth ability when meas¬
Germany Hands Out No News
That, obviously, was one of
ured
Releases
against that of com¬
the things that
Delaware & Hudson
accelerated the
Russia is encouraging our news¬
panies in established cities.
profit-taking, since reaching a
if
si:
papers,
radio .broadcasters, and
Revenues
of the Delaware
200,000 or $4.45 a share in 1957.
goal normally would prompt
magazines to tell of her "wonder¬ Hudson Railroad, subsidiary of the Despite this
drop in revenues and
South Carolina Electric, for
ful"
scientists
and
laboratories.
Delaware & Hudson Co., in Feb¬ net income the holding company lightening of commitments on
You do not hear anything of what
one, has been able to increase
ruary
have been showing im¬ maintained the $2 annual dividend. a general front.
Germany is doing.
Yet the soits earnings more than one❖
*
*
provement over those of January, Consolidated earnings for the year
called
Russian
scientists
were
third over a four-year period
according to recent traffic figures. amounted to only $1.62 a share,
There was caution
stolen from
Berlin

ulti¬

guaranteed

The

world.

isolation

Berlin

of

going
tougher on

was

Railroad Securities

•

gener¬
railroad
ated by the market's surge,
to $2.15 a
month.
i share on the outstanding stock of apart from the obvious sell¬
"Sputnik."
».A„n
an
increase in operating D. & H. Co., the holding company. ing, but it was tempered a bit
Although they are saying noth¬
The railroaA company is the prin¬
revenues this month it is beliCved
by the fact that few techni¬
ing, the Germans are far ahead
net income of the railroad operat¬ cipal
earning subsidiary of the
cians found any clearcut dan¬
of either Russia or the U. S. in
company and is the chief source
ing company will show improve¬
scientific
achievement.
Russia
ger signals flying. The volume
ment over those of January. Con¬ from which cash is provided.
talks as if the Ui S. were her great
One
of
the
most
interesting indication was favorable, the
solidated
net
income
of
the
enemy; while she knows it is Ger¬
company, including the subsidiary merger situations is that involving new peaks bringing out the
many and China she must fear. It
Coal
Co.
for
January the D. & H. Erie and Delaware,
is the present talk • of protection Hudson
Lackawanna & Western; It is un¬ highest volume of the year.
from enemy missiles by all na¬ amounted to $321,000 or 20 cents
» '■ $
% :% i'fi
derstood that studies are well ad¬ V^
a share on the holding company's
tions which causes the "cold war"
The buying was of fairly
stock. This was some $7,000 better vanced and despite the complexi¬
to continue.
than the amount reported for the ties of the capitalizations involved
Germany; in fact, I

believe it

a

was

German and not

a

Russian who

built

the

This
•

has

-^er

occurred

conditions

despite

bad

but

far

this

company

so

famous

earnings

the

from

were

equal

#

that there is

good calibre apart from the

possibility the roads items in
the rocket picture,
might have a plan to submit to
staid
American
Tele¬
stockholders and bondholders be¬ even

Eisenhower, deGaulle, and Mac- like 1958 month when net income
miilan Working' Closely With
aggregated 19 cents a share.'! The
Dr. Adenauer
Railroad Company reported earn¬
The Democrats blame
Eisen¬ ings last month of $398,000 as com¬
hower for everything, and talk pared with $327,000 in the first
about "the elephant sleeping in month of last year. There was a
the White* House." Our President deficit from operations of the
may be a child at politics; but he Canadian line north of Rouses
knows Europe better than anyone Point, N. Y. for; the, first time in
in public office.
He knows what many years, mainly because of
Germany is doing, but he keeps it bad weather conditions. The Hud¬
■

coupons.

The Lackawanna has 15

tions that have been in favor

bond issues

know

ern

that

of West¬

Europe. They are prepared to
closely with Dr. Adenauer.

work

Great events

Germany

are

has

in the

the

making—

world's

best

traffic dropped some 85% during
the year due to the drop in steel

production.
noted

Recovery has been
recently and this trend is

expected to continue with

yet is reasonably valued at
well under 20-times

earnings
yield of
around ZV2 %. This is the util¬
ity that has had a large
growth of population: in its
area, in part to operations of
the Atomic Energy Commis¬
sion, and has a substantial
and

a

dividend

customer in AEC.

.

Steel Prospects Obscure

this year, steel stocks weren't
in much urgent demand be¬
cause their picture is rather
well obscured

up in case there is a
strike and the steel mills have

stocking

practically all parties

are

in agree¬

the others

records.

quick to take
ment as to the substantial operat¬
scientists, best laboratories, and
best fighting spirit. The Germans sequent rise in earnings and rev¬ ing economies which could be ac¬ heart and post fair gains oc¬ steels,
enues.
Shipments of bituminous
are
not dishonest like
the

Rus¬

sians, nor are they soft like us.
They realize that in case of World
War III Russia would first
try to
destroy West Germany.
Hence,
the
West Germans are

making

plans to prevent this.

Germany

has

tremendous

for which she must

pent
were

or

sins

ultimately re¬
primarily

repay.
These
the unforgivable

persecu¬

tions of the Jews under orders
from Hitler and his cohorts. Per¬

haps one way Germany could
atone for these crimes would be

by inventing

way to make the
free world safe from Russian at¬
tacks

or

even

a

threats.




a

con¬

off, but it is antici¬
pated that these will continue to
pick up in coming months. Carloadings of anthracite coal con¬
at

a

low

level

and

no

Keller Bros. Add
(Special to The Financial Chronicle)

BOSTON,

re¬

covery to any extent is expected
in official quarters. It is

great extent and

no

other market is seen at the
present
time to take up this lost demand.
Last year D. & H. Co. has
gross
revenues of $67,700,000 and net in¬
come

share

of
as

$2,600,000 equal to $1.62
compared with gross

$82,400,000

a

of

and net income of $7,-

D.

Co.,

Inc., Zero Court Street.
I

and

been

Marion

added

H. L. Robbins &

chanic Street.

to

M.

the

the

much of the demand will dis¬

appear if there
and how costly a

western

roads

Satter
staff

of

Co., Inc., 37 Me¬

that

haven't

been pouring out the dreary
and

the eastern
❖

(Special to The Financial Chronicle)

WORCESTER, Mass.—Anita F.
have

for

ticularly the midwestern and

records

Two With H. L. Robbins

Robbins

Demand

show moderate demand, par¬

Francis

of Keller Brothers Securities

out that conversions to oil and nat¬
ural gas have hurt this source of
a

—

Obert has been added to the staff

pointed

demand to

Mass.

were

despite assurances of
casionally. Some of the rails, good profits for at least the
which is another group long first half, has been moderated
laggard, were also able to by the moot questions of how

complished.

coal also were

tinue

by strike possi¬

bilities. Customers have been

been humming, in fact on the
brink of setting a new weekly
prediction that Gulf Oil would
abandoned the liens of the mort¬
show the second-best profit in production record in tonnage
gages must be protected. Not only
the bondholders but the mortgage its history for 1958, despite although with the recent in¬
trustees acting in a fiduciary ca¬ the uncertainties of that year, crease in capacity the produc¬
tion rate isn't threatening any
pacity must be satisfied. However,
spurred this item, and some of

great extent.
Preliminary estimates are that this
a

deGaulle

well if not

Apart from Lukens which
fore the end of this year. One of phone
continuing to reach the
shrugged off a rather sharp
the problems is that the Erie has
best prices seen for this issue
1958 earnings trim and seems
seven bond issues
outstanding, two since 1930. The
special situa¬ destined for a good recovery
of which carry contingent interest

,

Germany is the protector

as

a

outstanding. Of these for so long were also among
13 are! fixed interest bonds,, with the
wide
movers,
such as
four having additional contingent
Polaroid and Lukens Steel.
to himself as Dr. Adenauer wants son Coal Co. continued to show interest coupons
(Split coupons)
and the other two contingent in¬
him to do. The same also
Oils Pick Up
applies a deficit, reporting a deficit of
to the scientific developments of $56,000 compared wi+*> a deficit of terest bonds. D. & H. has only one
Oils showed some signs of
fixed interest bond issue outstand¬
France under Charles deGaulle $35,000 in
January, 1958.
and of Great Britain under Harold
to do better after
The recession in general busi¬ ing. The liens of the various issues wanting
also present a problem. If through their rather
Macmillan.
President Eisenhow¬ ness hurt 'the movement
protracted lag. A
of D. &
consolidation some trackage is
er, Prime Minister Macmillan, and H.'s ore
traffic to
President

and should do

better in the next four years,

statements

ones
❖

if

that

have been.
*

be to the

is no strike
strike might,
companies.

Whereas
tronic

if

some

#

of the elec¬

stocks have soared to

Aerojet General, an Amer¬ where the usual market yard¬
ican Exchange issue, which sticks
would
indicate
they
had put on some of the wilder already are discounting much
moves in the early
stages of good news for years ahead,
the rocket excitement, sim¬ Amphenol-Borg Electronics is

Volume

Number 5826

.

.

.

The Commercial and Financial Chronicle

sober

a

•

189

priced item in the.
showing a yield above
3% and selling at about 12times estimated earnings for
this year. The firm is some¬
thing of an unknown quantity
since the merger of Amphenol
and G. W.
Borg was only ac-;
compiished at the end of last
year. The merger did give the
combined operation a sounder
base and pave the way for a
stepped-up research program.
It is deep in the business of
Supplying components for
group,

of

*most

the

in

missiles

(1093)

Leading Economists to Debate Monetary Policy
Dr. Robert V. Roosa of the N. Y. Federal Reserve will
comments

of Dr. Marcus Nadler and Dr.

will

answer

Henry H. Villard

policy at

a

meeting of

on

econ¬

Friday evening, March 6, in New York City.

hear

definitive

a

criticism

and

defense

"Changes in

of

315 Fourth

Avenue.

consultant, to The Hanover Bank, will examine

the

Powers

of

the

Monetary

Authorities"; Dr.

Henry H. Villard, Chairman of City College of New York's

use

nomics

currently but also has a very
broad product line to make its

in

department will dwell

Controlling Inflation" and,

on

as

"Limitations of
a

eco¬

Monetary Policy

rebuttal speaker, Dr. Robert

V. Roosa, Vice-President of Federal Reserve

monetary

in controlling

measures

\

for

this

academic

consists

The

year.

Robert D. Leiter
of

economic

President

of

C.

C.

N.

academicians,

of
Y.

the

organization

analysts,

Bank of New York

The role of the Federal Reserve
fulness has been particularly in the

and

monetary policy's use¬
limelight due to: paradoxical
price-level behavior during the recent recession-recov¬
ery period of excess,.capacity, troublesome unemployment, and
growing foreign competition; importance ascribed by President
consumer

Eisenhower, Secretary of the Treasury

Anderson

and

American Motors

relationship to distribution of and willingness to hold Federal debt;
recommendations
and

by "Business Week"

former Economic

Council

others, that there should be
all

a

close

monetary-fiscal activities; and

our

real economic

publisher Elliott V.J Bell,

Advisor

Arthur

F./Burns, among

integration in

concern

one

tion

was

also

growth.

.

.

sec¬

of watchful

one

waiting

which

American

except

Motors

clipped

was

back rather hard

on

the pros-

pect that its free hand in the ;,,
small car field wras. in for

competition both from
Big

some

t

Studebaker and from the
Three.

decline

But its

to have reached

seems,

CHICAGO

point where

a

•

CtfcVeiANO'

;it is gathering new friends at
least - for
the
intermediate

WA MiBHm

;term. The company is assured :
of some handsome profit
statements, at least until the

/

1

:

^NiLSS

:V0Ul«G|:fi?tOWN
MASSILLON

Big Three get into production. And since- the latter possibil-

CANTON

ity is not due until Fall at; /
least; American would seem/,
to be a candidate for at least •

good rebound on its nearearnings prospects.

a

term

-

Items Abroad

Y' With

the

of

some

invest¬

companies showing a
shift to foreign blue chips in view of the high, if hot over¬
valued, prices of some of ours,
: there
was naturally a bit of . •
attention being devoted to investments
outside our
ment

~

YY-'-Y-Y* /••"■/:•

borders.

One that,

•.

$'•

t',i

:}«

while

on

the high

reasonably
Massey-Ferguson,.

side, seemed to be

'priced was
I the
:

largest; farm

machinery,

maker in Canada

where pro-

ejections indicate that the farm
"picture will be a bright, one
year.: The

this

-•

company

is ; •'

something
of a trial status since the pres¬
ent management only took
over in 1956 to try to stop the
•considered still in

-

•

'

dwindling profits.

pattern of
Tts

first

write-offs

and

heavy

plus

Republic, Smack in the Center

sizable
liquidations,

chore was

charges that

non-recurring

AND ENJOYING IT!

dumped it into

in

1957/ Last year

there was a

good rebound and

the

red

Ninety percent of Republic's steelmaking capacity is located

projections are that the com¬
pany could double last year s
J
$1.25 a share within the next
year or two. But at 12-times
•last year's earnings, plus a
payout of only a third of earnings that is well sheltered and
offers
a
yield approaching
3
the present market price
of the shares on the American
Exchange doesn't seem to be

in the Great Lakes heartland

steel is consumed. And, the

Republic

[The

views

Result!

Labrador, Michigan, New York, and Alabama;

ample

reserves

It adds up to a
ties

of limestone and coal, too.

profitable marriage of facilities and abili¬

right in the center of America's great steel consuming

markets.

its heart lies along the Great

Shipping advantages from

General Offices

Alloy, Carbon, Stainless Steels
Plate
•

•

Cold Finished Steels

Rivets

Chemicals

And, right in Republic's

-

supply of

raw

own

Cleveland 1, Ohio

•

Republic plants in

Warren, and Youngstown to key steel consuming industries.

expressed in this




ware¬

Buffalo, Chicago, Cleveland, Canton, Massillon, Niles,

do not

•

the whole nation with plants and

from

equipment, and machinery industries.

limited

necessarily at any
; time coincide with those of the
"Chronicle " They are presented
as those of the author only.]

And

recently expanded Gadsden,

houses from coast to coast, but

excessive.

article

serves

ore

Lakes—center of the automotive, appliance, electrical, farm

1

'

where 66% of the country's

Alabama, mill makes Republic bigger in the dynamic South.

'

J

—

"backyard",

an

almost

un¬

materials—taconite from Minnesota,

Wire

•
•

•

•
•

Titanium

•

•

Nails

Fabricated Steel Products

and Aluminum Windows

•

Bars

•

Plates

Steel and Plastic Pipe

Farm Fence

Steel Kitchens

Handling Equipment

•

•

•

Pig Iron

•

Sheets

Tubing
•

•

Strip

•

•

Tin

Bolts

•

Nuts

Iron Powder

•

Coal

•

Steel Building Products

•

Shipping Containers

Drainage Products

body of

about the progress of

Clipped

The word in the auto

dealer in

government securities Aubrey G. Lanston to the Federal budget's

business well diversified.

-

is

the membership
researchers and

and

writers

Nadler, Professor of Finance at New York Univer¬

sity and economic
the

on

cycle.

meeting of economists is the third out of a series of four
sponsored by the Metropolitan Economic Association of New York

„

monetary
policy's effectiveness this Friday evening, March 6, 1959, in New
York City's Remington Rand Auditorium
Dr. Marcus

business
This

NEW YORK CITY—Economists of the New York
metropolitan
area

the

Professor

the general subject of monetary
omists

will defend the effectiveness of

17,

•

•

Steel

Materials

Chronicle

The Commercial and Financial

18

.

.

.

Thursday. March 5, 1959

(1094)
expenditures. It is ments under the social insurance the aggregate have risen every
that loans and system.
V
year in the postwar years. In the
transactions drop by. Another item to be noted is the past five years, the average rise in
nearly $3 billion from fiscal 1959 decline in subsidies less current expenditures (on national income
to fiscal 1960. These include trans- surplus of government enterprises and product account) was $3 bilactions of such agencies as FNMA,;from a total of $4 billion for fis- lion per year; the increase in reExport-Import Bank, Commodity cal 1959 at %Vk billion in fiscal ceipts - averaged $2V2 billion per
Credit, Corporation, ! and
REA. 1960. This budgeted decline comes year. For the year ahead, estiFinally adjusting the cash budget "about mainly as a result of antic- mates of expenditures-; and jeto eliminate such loans and other ipated reductions in payments to ceipts of States and local govepi-

such

Effect of Eisenhower's Budget
!

PARADISO *
Chief Statistician

By LOUIS J.
Assistant Director

—

Economics

Office of Business

Commerce, Washington, D. C.

United States Department of

tenuous

<

outstanding econometricians analyzes
three measures of Government receipts and expenditures to
evaluate the effect of 1960 Budget—as presented to Congress
of the country's

One

capital transactions, the rise in es- farmers under the soil bank pro- ments are more
than fhe •.
timated
Federal
expenditures gram, and the proposed increase Federal estimates since there are
from 1959 on an income and prod- in postal rates designed to mini- no summaries of budgets available
mize
the
post 'office operating as is the case for the Federal Gov?
uct account basis is $1 billion.
deficit.
V- cV-i
y
ernmehtiV Based" on fragmentary
Analyzes Breakdown
The Budget submitted for 1960, information and using past trepda
*

national economic activity. Mr. Paradiso expects that
fiscal 1959 to fiscal 1960: (1) an almost $4 billion drop;

—upon

from

(2)

budget expenditures;

in administrative

Let
„

$2 billion drop:

a

•

$1 billion addition to national, income and product;
account after
making adjustments''for IMF. payment rand
decrease in loans to FHA, Ex-lm Bk, CCC and REA—indica¬
and (3)

/

a

I

the present time,

At

I

•nent—Federal, State and local— framework the Budget expendicomprise more than one-fifth'of ture estimates imply a total of
the Gross Na$92 billion in fiscal 1960, up $1
tional Prodbillion from the estimate for fisCal 195°
T11 thfl first Vinlf flf pal—
uct. The Fed¬
.

eral

estimated

In addi¬
these

12%.

Importantly
through vari¬

e^lndtoes^shown
.

T

F.v-Viilvit

mditures drop by

•

Louis

'

J.

,

fnr

nrnvirlPs

nearly $4 bil-

budget expenditures,
representing all payments to the
public, drop by $2 billion.
This
difference is due. mostly to (1) a
rise in payments out of trust funds
by Congress. The upturn in such amounting to« about ,$iy2 billion,
purchases,-together with ':)Pt)jer and Whri expenditure in.the adgovernment programs, contrib- ministrative budget representing
uted importantly to the economic the
issuance
of
International
recovery now underway.
v
Monetary Fund Notes amounting
We have made

translation of

a

the 1960 Budget into the national

fJWduct accounts to
effect

national
economic
activity.
Only broad
categories were examined, but for
the
purpose
of
appraising the
overall economic impact, the reeults obtained provide useful
guides.
upon

^1-

,j

The

cash

Government

Expenditures

Budget

the

Also,

that

in

either

govern-

D. C.

and

national

measure

on

collections

dollars in

the

product

income

differs

account.

and

from

profits

corporate
an

product

the

loan

are

cash

a

transactions

involve

or

other

taxes

accrual rather than

basis;

omitted

are

differences

in

of financial and
second-hand
assets
are
excluded;
and
an
adjustment is incorporated for the
lag between deliveries of and payments
timing;

by Mr. Paradiso before The
Economic Committee, Washington,

acquisition

The

Government

Administrative Budget;

I

Receipts

and

Account, 1958-1960

billion,
'

,

Actual

69.1

...

Plus:

Trust

Less:

Intragovernmental transactions and

fund receipts

16.3

tax

over

Equals:
Less:

Estimated
77.1

17.6

20.5

3.9

4.1

81.7

D3.5

4.0

—1.2

"ents
* J " duct

■

the framework of the na.
„
no
tional income and product accounts, the Budget implies that
loiai expenauurts ior xaiego-. the tota> receipts jn fiscal 1960
ries.not inqiuaed, in gooas ana wJ11 be $935 billion, a rise of $9
f^ices
tiapt is, transter pay- biUion from the Estimate for fisScal year 1959. This is about the
^ sanie as that shown by the admin-

fistrative budget receipts. As
I

indicates,

Jle^°lreceipts rise
Bt^get mplig
from fiscal

iqcq

on-

1_ .fl!;.

billion in fiscal

$42

u;ninri

i

„

,

•

-men

kllll0n \n fiscal 1960,

1959 and

Taking into account the higher
expenditures, it would appear that
these governments are likely to
incur about the same deficit ih the
aggregate as the average of recent
¥*

years*

ex-

the trust fund

Aggregate Government

by about $3 billion
1959 tQ figcal 1960

™'1958.

ea«*ai ^overninent.
national tarttae

SaStSlS®
mated to be

.

U i?

1flen

p.

•

iu

•

Expenditures Up

'

■I-;

while the excess of corporate tax

increase is

er

projected for these

items in fiscal 1960.
_

,

Transfer payments moved

ahead

rather sharply in fiscal 1958 from
of

rate

annual

an

nearly $17 bil-

lion in the third quarter of calendar 1957 to nearly $22 billion in
the

fourth

of

quarter
of

Part

this

to the rise

ditures

84.5

80.9

.9

of

na-

payments"n total

are

Ix-

in

other

,

$88

goods

and

services

expected to rise from the total

$91 billion in 1958 to $97 y2 bil¬
lion in 1959.
•
A
In

summary,

for

all

go\T4m-

Government're-

"^nxs comoinea, ^overnmeni^re-

that revenues will rise with eon- ce'Pts ln £lscal 1960 wlU be about
tinued improvement in business in balance with government, exactivity. State and local receipts penditures. The indicated surplus
and expenditures to rise.
0f §ii/2 billion in the national in-

change, however, as unemploy¬
compensation payments de¬
cline and are offset by a rise of

Upward Trend in State and Local

: Data

.

Receipts

transfers,

mainly in increased benefit

from the current rate, but

year

business

were

of

was%4eral e^Pend^tures will not differ substanaccom- tially in
the forthcoming fiscal

in

of

purchases

Budget

the

summary,

services

and

$98V2 billion in fiscal 1960. On a
calendar - year basis, government

increase

decline

goods

billion;
these
are
promoted' to
$95 y2 billion in fiscal 1959 and to

are

In

State

pay-

20.3

—^.6

the

in the current fiscal year.

and

local

and

77.0

18.9

in

and

Government

expenditures

governments

.1

of

for

accounts

come

would

_

the
be

Federal

offset by

the expected deficit for State:and

in local governments.

93.5

16.1

income

in unemployment

benefits

billion

receipts

product
accounts, the indicated surplus is
$1 y> billion in fiscal I960 "compared with a deficit of $6% billion

calendar

the

SI1':*

and

tional

,

,

—1.5

78.3

'

*

EXHIBIT H

■

Federal Government Expenditures on National Income and Product
v

(including IMF notes)
Cash payments to the public

--.r

Account, 1957-1960

4.5
92.9

3.9

1.1

—.6

.0

—.2

82.5

91.0

92.0

—12.9

.1

Grants-in-aid

1.5

—13.2

.6

Transfer

4*2

—6.4

1.5

:

account

expenditures

~"II

^

National Income and Product Account

I2_Z

as

funds,, and

those

of the District of Columbia, contributions to
receipts .of-capital items like .repayment of loans..

tIncludes such expenditures as those of the District of Columbia, governmentsponsored enterprises, contributions to Federal retirement funds, and accrued inter¬
est on savings bonds and Treasury bills.
Administrative and cash budgets from the
Budget of the United States
Government for the Fiscal Year Ending June 80, 1960; national income and product
Recount data from the TJ. S. Department of Commence, CK^oe of Business Econom¬
Source:

ics, data for 1959 ana 1960 based




on

estimates in the Budget.

1st

IV*

half

half

half

1958

1959.

1960

90.6

92.3

91.8

92.0

82.5

91.0

92.0

7:
79.6,

87.0

53.8

55.0

54.0

.->4.0

49.7

54.0

54.Q

49.4

51.6

r

44.5

45.0

46.0

45.5

45.5

44.1

45.5

45.5

44.3

44.3

>

36.5

36.8

37.2

37.8

88.0

82.6

37.0

88.0

-30.1

5.4

6.0

6.2

6.4

6.6

4.5

5.9

22.1

21.7

21.0

21.7

22.1

19.2

21.4

21.9

17.3 '

20.9

•20.5

19.8

20.5

20.9

18.0

20:2

20.7

15.5

1st

Calendar Years

49.7

49.7

49.1

49.7

50.7

44.9

44.9

43.9

43.7

44.1

28.6

80.5

30.2

31.8

83.0

35.4

3.9

3.8

4.3

4.4

4.4

4.8

16.0

17.8

17.1

18.6

19.5

21.5

14.6

16.0

15.9

17.2

18.3

20.3

1.4

1.8

1.2

1.4

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.2

1.5

1.2

5.5

persons

abroad

L

Interest
Subsidies. less

5.7

5.7

5.7

5.7

5.7

5.6

5.6

5.6

5.9

6.3

5.7

5.6

6.1

5.6

5

3.2

3.2

3.1 /

3.1

3.4

3.4

3.4

3.5

4.4

3.0

3.2

4.0

3.5

3.1.

3.4Vf 4.2

surplus

S.

and

6.5.

1957

4.1

3.6

^
Department
mio

30, 1960.

3958*. >1956
"92.0
,r54.5
46.7

35.4 V-- 37.5

5.1

'71

21.2

'20.0

6.3

21.3
'

20.1
1.2

7^ 5.6

of

enterprises.

U.

•

cur¬

■^Preliminary.
Source:

Fiscal Years'

2nd

III

86.0

43.7

sales)

payments.

to

govt,

•W;

1960

I

defense

rent

-

.

82.8

expenditures

(less

to
such receipts

;

-

IV

49.1

National
Other

-

80.8

ill

H
80.1

expenditures
Purchases of goods &

'

SURPLUS OR DEFICIT

.

Administrative Budget
Cash Eudget

•

I

79.9

I

77.7

Total

services

II

-■

.

-•

88.7

1958

1957

5.7

94.9

1.5

2 8

Miscellaneous adjustments J

Equals: National income and product

(Billions of dollars)

-

•

•i-1959

4.0

I

>

*

Seasonal Adjusted Annual Rate

.83.4

^

Loans and other capital transactions

retirement

Federal- Government
£ cUcl«fl{ ^UUVCnUUcUt.

noo

"Mbit

taMS

EXPENDITURES

-

*Tnoludes

resultVof Jtm-

in* personal SI
anTsales

......

..

1.5

—1.2

—

Government-sponsored enterprise expenditures (net)_—
Intragovernmental transactions and other adjustments

Feaeral

a

m nronertv

1"

Rndcet

nreSent

the

19M

as

1959.

activity in the fourth quarter, corthan $4 billion in purchases from porate. profits- are
substantially
liscal year 1958 as a>.whole to above Thoseof.the third quarter.

ment

68.0

collections, corporate— —2.3

Administrative Budget
—■
Plus: Trust fund expenditures—
Less:

■•<

a

*

composition of the payments will
19G0

71.9

Miscellaneous adjustments*1

*

1959

3^6

adjustments

Equals. National income and product account receipts—
.

-

pected to rise by only $V2 billion

81.9

other

Cash receipts from the public
accruals

representing
li_

from fiscal 1959 to fiscal 1960. The
Fiscal Years

Excess of tax

•

Commerce, January

ehange in the course
Compared with the rise of more

Transfer

■

1958
RECEIPTS

Administrative Etidget

published in the "Survey of

It is
no marked* quite.
that. as. in result of «ne
a Hnsinpss'- ilU!U th
of f
ii—
+I-10
onHcfonfiol
uuof that year.- the...substantial rise in business t®.
the:

and services will total $54

uanvinG

Expenditures:

(Billions of dollars)

,V ■;

pected to rise

at an annual rate of $38 billion

Budget implies that for fis-, was

compensation

Cash Budget, and National Income

And Product

Plus:

estimate of corporate, ^profits for
the third quarter"of'calendar 1958

The Budget Spites purchases of was Polished in.the;;Survey of
I960, government that for fis- Current Business," Department oi

due

Federal

State and local revenues are.ex-

.

cal

1958.

for goods.

,

EXHIBIT

Equals:

5

.

are

•Statement

ifoint

billion

a

income

national

recorded

on

than

more

two

Stabilize

the

of

l

.

I shall first discuss the implica-

tions

H'. mi-l

.«

The trend of the combined" exaccruals over tax collections drops penditures of Federal, State and
fiscal 1959. This latter item does i^11?lsc®1 1960' /ollo^ing. JJjL ?
not appear in the
1960 budget. p.llll°n1(1"S5eaAse
flf.cal 1959 t(^ by $2V2 billion. These are the two local governments will be upward
The cash budget does not include f?fcal 1959- f substantial part of large items which make up the throughout the coming fiscal year,
0
the contemplated $4 billion 1959
1 The
difference between the adminis- This
rise during the next 12
three measures of Government
rise is expected to be in transfer
receipts and expenditures differ in the
trative budget receipts and those months, however, would come alfollowing major respects:
The admin¬ payments
to individuals and in
based on the national income and most entirely from State and local
istrative budget does not include transgrants-in-aid to
the State and
in¬
SSVSTiSTf.S™h
product accounts.
governments.'For the fiscal year
local governments. A much small¬
cluded in both the cash budget and the
Comparing the estimated expen- 1958, total government purchases
to

account

1

nrnfitc :.'finrirnvimQtin<I

nnm-inrata

ParadiH P«tdituresfiscal 1959 iwariy ^1960. fiscal 1959,great change Budget
orop oy to fiscal ou- imniipc
the present
lion from
s

for the fiscal year
1959 implied an increase in government purchases over the fiscal
1958 total, and enlarged programs
and appropriations were enacted

its

>1958 amounted to $41

$47 billion. ; Both of in fiscai 1959 and by $3 billion
these figures are for the calendar more jn fiscax i960 to a totaLof
year 1959. These estimates corA-c approximately' $44 ^ billion.. Inpare with an annual rate of per- crea£ed outlays for construction,
sonal income of $359 y2 billion last particular!y schools and highways
December, and an annual rate of-,and hiahe'r emolovee comoensa-"

...

........

budgets. Exhibit I provides for
broad categories, a reconciliation
nf the three
budget measures.!
The admmistrative budget ex-

time last year

and

general, guides,, it is assuiped

as

that purchases of . goods and seryices tbyi .theseygovernments
continue, dt%riseTbore or les^5a
line|c«iph^tbb i^#htgrend4.>»H^f
Expenditures of State and Ideal

profits of

fVio firot l-ial-P nf 1 Q^Q ixrill Ha at

m

goods

Fin/4crotc

ac¬

The

p^esld.t°t
About this

evaluate

made
for such purposes as the farm
price support operations and the
pay raise for Federal employees,
it is expected that government
purchases of goods and services

>

SX

Budget pre¬
sented by the

Income

corresponding

turcs, greater outlays were

...

dedfne ™n'

economy

other

the

to

...

also influence

ous

,

approximately $92 tures accounting for practically all
billion so that little change is in- 0f the increase over the fourth
dicated for fiscal 1960 from the quarter 1958 rate.
rV

purchases,
governments

tivities.

'
.of cal-

annual rate of

to

the

significant

no

endar

portion is

tion

of goods and serv-

implies

therefore,

change in the purchases of goods
and services from the current rate
an only a modest increase in all
.other types of expenditures. iLoans
and other capital transactions as
reflected in the administrative
budget are estimated to decline
rather sharply in fiscal year -1960.

g0vern,hient^ {o)i| national -inconie
and-4£foduc^afcbount) - in,-» fiseai"*
billion; they
quarter of 1958, Federal Govern- •; Underlying the $77.1 billion of -arc calculated at S44 billionv»in
ment purchases of goods and serv- Federal Government receipts for fiscai
1959 and $48 - billioir lin
ices increased by more than'$4%
fiscal year 1960 are the assump- fiscai i960.-Purchases of goods
billion to nearly $54 billion at an tions, as stated by the Secretary an(j services, which- totaled^>$38
annual rate.
In addition to the of the Treasury, of $374 billion of billion in fiscal 1958, may be dxrise in national defense expendi- personal
income and corporate pected to increase by $3y> billion

ment
expenditures. Exhibit
shows that in the national income

purchases

expenditures

the

of

•

1957

endar

is expected to
be upwards — pushed by non-Federal accounts, with ^l1/^
billion surplus in national income accounts for Federal Government to be offset by State-local deficit.

Of goods and services by govern-

breakdown

into purchases

From the fourth quarter

Federal, State and local governments, however,

*

economic

turn to the

ices and other items.

trend of

expenditure stability. The aggregate

tive of Federal

us now

impact of Federal expenditures as
revealed by the income and product accounts.
Exhibit II shows a

*

the,public;*

budget representing all payments to

in the cash

as

other capital

On National Income and Product
-

notes

bef observed

to

are

.

1

of ^.Commerce,; Office-ol Business.. .Economics.> Data. for. 1957 and 1958 are actual; cata.'for 1950
on estimates in-the Budget of the
United States Government for the-Fiscal Year-*Hdin«- Jun^

based

Volume

•jfr
%

TA*

189

Number

5826

.

.The Commercial and Financial Chronicle
\

.

Lundborg & Co.; R.-William Bias,
Shu man, Agnew & Co.; Calvin E:

Walker Gislei
laV■

~lk

Nominating'

America Wk.

III

^PHILADELPHIA,

appointed
Invest-in-

erica
^Week for 1959,

"^which will be
"3
'd T> served
!d % s (
thro
throughout

country

I'M
'■

"T ^ointment was

*

of

inNta t;i

the

o

a

n

600

Old

firm

ments.

the

0j|BPV est- i

•.

for

company to

general

be

corporate

.

Country Road under
of

-name

-Walker.

1

fore

Dec.

31*

1961

to

on

or

$16

APCO

L.

Estates

Cisler

from Dec.

the

on

ac¬

share of

81,c 1958.

debentures
V'.~

:

;

common

stock.

Blossman Hydratane

Planners

'f *'• /'

Corporation.

-

; for

;

the

retirement

of

short

term

Gas,

of

propane

liquefied-

or

counties

net sales of

subsidiaries

were

was

$3,972,853, while net income

228,390, equal to 54 cents

common

Upon completion of the current

financing
of

outstanding

the

company

capitaliza¬
will consist

of-$23,385-of short-term debt; $1,697,500 of funded debt and.539,shares, of;

common,

;• Other

,y?'?

members

of

and. also is the first National

f Chairman to
r

Draper,

&

Co.

'

.

.

"'K1.'/:.
•

*

serve

for two years.1

National

Recent

•'

Chairmen ; for't

the event have been

Theodore

Si

Petersen, President of Standard
r 'Oil'of California, 1957; R. George
'Riricliffe, President of the Phila*
yf'ttelphia Electric Co., 1956, and

,

"

^'HOese H. Taylor, President of
ion Oil Co. ,of

Un-

California, 1955.

Born1 out. of

suggestion

a

•

back

Y in 1949, Invest-in-America Week
Y is a period "when the importance
^6f thrift and savings, -which pro-

-

yide« ^capital funds, for expansion v.
,^?SfjDusiuess and industry in Ameiv,t:
ica,'„

emphasized,".'Mr.Potts ,k

are

f pxplained.
Theme'lor Invest

in

-

-

America

IJWfeek is ^Money at work

means

at work.", ,t- v ;
at.7j:t:■»;'■.;■;-v

r>.vi

'^'people

-

Pacific Coast Exch.
•>

-

>

•

George W. Davis,

-.

the

of

Board

Chairman of
Pacific

the

Coast

^

Stock

Exchange has announced
following appointments
to

;1 the
'

tJomjnittees

of the

Ethics

,.x •

;;

•.

.....

Business; Conduct
R. William
Bias,

and

Committee:

i>,

Francisco

San

q Division for 1959:

Chairmflft, Shu man, Agnew & Co.;
Brantley M. Eubanks, Stewart,
I Bubanks, Meyerson & Co.; Duke
O.

,'v

Hannaford, Hannaford & Tal-

Hodge,
Frank
C.
Co.; Joseph A.
Z: Johiisou^. Lawson, Levy, Williams
St Stern; Murray Innes, Jr., Irhot;' R. ' R.
Shaughnessy

-J

:

&

.Ving Lundborg & Co.

,

Flnanco Committee: R. W.

Wild,
Chairman, First California Company,
Incorporated;
Daniel
J.
Cbllins, Holt & Collins; Arthur
7'* Gambarasi, Shaw, Hooker & Co.;

*

a

Walter A. Hamshaw.*

-

Floor Trading Committee:

Jack

'- ^

C. Johnsen, Chairman, Parrish &
»niMax\vell; M. J. Duncan, Calvin E.

r?

.Duncan

&

Co.;

Joseph

F.

Two Belt im'cntionsy

York & Co.; William V.
FUrrell, Irving Lundborg & Co.;
Sherman Hoelscher, Sherman
Hoelscher

&

Co.;

An astonishing amount of equipment
can. be. packed, into an artificial earth,

"

Mark-O'Don-

satellite. There

hell, J. Barth & Coc; Herbert J.
rYatesc HI ; (Alternate); ~ A. 'G.
Becker ik Co. Incorporated.
• **

example,

.

Koch, Chairman, Walston & Co.
Inc.;
Gerald F; Brush,; Brush,
Blocumb & Co: Inc.; Richard P.
0.
..,

1,
i.v
: v

Gross, Stone & Youngberg; Rob^ert B. Horner, Elworthy & Co.;
John C. Hoyt, Sutro & Co.; G. W.
-MRler, Jr., Dean Witter & Co.;
;A 1 b e r t
E..
Schwabacher, Jr.,/,
Schwabacher 8c Co. *'
-

txy
i

*

,

-

Floor information

Committee:

Joseph A.c Johnson,
Chairman,
Lawson, Levy; Williams & Stern;
Richard P. Gross; Stone & Youngberg; Victor T. Maxwell, Parrish
& Maxwell; RVE; Varr der
Naillen",
HenryTP. Swift & Co. : -

a re-device's to measure

the temperatures

Listing Committeej/Kenneth C.

-.■j

the Trnhsistor arid the Sohr Batten", still work perfectly in the first Vanguard satellite, in orbit since March 17, 1958.

Edel-

\s|ein,
"

density,
4

and
or

of

outer space,

determine

also

/

do

reason

a new

word-

why small satellites

can

big jobs. Hundreds of pounds of

equipment have been reduced in size,

for

meteorite

cosmic ray "activity.-

Then there

Miniaturization—still
is the

or

"miniaturized,"

pounds, and take

..

small but

weigh only

to
up

little

a

few

transistor is

powerful radios equipped with tran¬

this.

About the size of

sistors—the

room.

it

two

tiny amplifiers invented at
Telephone Laboratories—and
batteries to power them.-.
the

in- the
ment

Vanguard satellite, .shown

picture aboVe, all of this equip¬

is in the

cylindrical' core.

good example of
a

power
*

that

very

be usedr And it's
4

of

The

small batteries

qualities that make the

transistors

can

rugged..

*

v-

-New-

M e m-b

e r s

Committee:

George J. Otto; Chairman, Irving




BELL

advantage in

imperative in satellites

of

are

TELEPHONE

now

and

help millions

customers to

dial their

long distance calls directly. And
those who are hard of hearing can.

with

transistor-equipped telephones
adjustable volume control.
.

Small
ready
has

as

it is,

won a

an

even

the transistor has al¬

big place for itself, and
bigger future .
in the

heart of many a
use

more

telephone equipment. For

telephone

..

satellite yet

to

orbit,

and in the heart of tomorrow's better,

telephone sendee.

-

"

to

own

lima bean,

can do the
job of a vacuum tube
fifty times larger. It needs so little

Bell:

»In

a

new

example, transistors

order

The

are

also used
more

SYSTEM

':

Sears & Co. and Ernest M. Fuller

t^lional
■'t;-4veUt

';'

under¬

.

-;f ^'Mr. Cisler, who also headed the
t^week Tast year, is the first. Na=~_~"
Chairman 'from the Mid-

stock, .$1'
•»

the

•V.tMr.;*, Potts ■ is .' President .vOf/rthesv: ?';
i: Philadelphia National Bank,
Z:

■,

per

share.

•

.LtAmerica -Committee, w h i c h i s ■ ;r
'
j
S head quart ered in'Philadelphia?%
-

ill

writing syndicate include

petroleum

Mississippi. Ap¬

22

its

and

company

Inc.; par,' Value;"

and butane in the states

of Louisiana and

and

fiscal year ended June

the

£89
-

the

30, 1958, consolidated

■

.•

-

Louisiana

Mississippi.

is engaged ip the sale and distri¬
bution

Corporationand* ing will be used by the company

'

-

v. i*

Invest¬

crued interest

of

be¬ tion

on

19

proximately 40,350 gas customers
are served at retail in 48
parishes

For

before Dec. 31; 1978, for each full

and 50 shares of common

He.;was y formerly:?, with; f .VNet? proceeds- from, the financ¬

VFirst •..Investors
v'

n-

Labouisse, Fried- bentures scaled from
$6

securities business frorrr office^ stock, is spliced at. $500, plus

,

fiferm anent;

v

the

~

n^of(flie'>:^

L Board

•

GARDEN

at

fAttf

I JhJtts, " Chair-

v

a

,

Li'1 Mhounc&d by V

a.tnsa

.

available

Rack unit, consisting
$500 principal' amount,of de¬

CITY, N. Y; V An-; of:
thony F. Perrotta is engaging in1 bentures-

;;

,

Frederic

Weil,

richs & Co;

2. Mr/:;!
Ciller's ap- 5
a y

Securities Offered

Committee (Elected

Forms APCO Investments: Howard,

f*Ajpril 26 thru
•

notes, and the balance of
the proceeds will be added to the

cash funds of

Hell-,
Unless called by prior
000 shares of
redemp¬
common
stock of
man, J. Barth & Co.; Joseph A.tion, the debentures will be con¬
Blossman
Hydratane
Gas,
Inc.,
Johnson, Lawson, Levy, Williams
vertible on or before Dec. 31, 1978
was made on March 3
& Stern; Earl T. Parrish, Parrish
by an un¬
derwriting group
& Maxwell.
jointly man¬ into common shares of the com¬
y
aged by. S. D. Fuller & Co. and pany, at
principal amounts of de¬

~^'m

Ytli-e

bank
,

at Annual Meet in?): Charles H.
Public offering of .2,400 units, of purposes.
The debentures will be redeem¬
Clay,-Dean Witter & Co.; Wil- $1,200,000
principal amount of 5%
Shu man, Agnew Subordinated Convertible Deben¬ able at par, under certain condi¬
^ £.°.> Mark C. Elworthy, Mark tures, due Dec'. 31, 1978 and 120,- tions, plus accrued interest.
C. Elworthy & Co.; Marco F.

Pa.—Walker
It/. Cisler, President of The Detroit

fedison Co., has been
'National Chairman of

(1095)

'

;

The Commercial and Financial Chronicle
20

News About Banks

in

Treasurer

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

REVISED

The

CAPITALIZATIONS

Thursday, March 5, 1959

.

.

appointments of Anthony I.
Eyring and Robert R. C. Pape as

March

announced

Chase

the

of

Vice-Presidents

York, were
by George

Manhattan Bank, New

3

Champion, President.
Mr.
Eyring, who

the

joined

Chase National Bank in 1930, was

as Executive ViceIn his new position he

President.

George Kadel, of the
and Charles S.

of

Pension

Division

the U. S. Govern¬
Division, as Assistant Viceof

Yedinack,
ment

J.,

N.

of

will continue in an

National

administrative

was

President.

1944 and
Vice-Presi-

in

Director

a

1958

in

named

was

ft

tional
an

the

the regional

with

is

He

Simultaneously, Mr. Moore an¬
nounced the appointments as As¬
sistant
Treasurer
of Joseph H.

supervising Chase Manhat¬
tan's
business
relationships
in
nine western states and Hawaii.
group

in his 35th year with
bank, joined the Chase Na¬
Bank in 1924.
Appointed
Assistant Cashier in 1952 and

Mr. Pape,

the

advanced to Assistant Vice-Presi¬

bank's

Avenue

Prospect

of¬

fice.
Mr. Kadel has been assigned to

department.
Other
promotions
also
an¬
nounced by Mr. Champion were
those of Alex H. Ardrey, Jr. and

pension trust work since joining
Bankers Trust Company in 1951,
he was named an officer of the
bank in 1955.

Treasurers

are

Madeline R. Bur¬

A. Farrell, Helen W.
Hover,
Juliette D.
Mannheim,
Gordon F. Ahalt, James F. Maher,
Jr., and Arthur H. Phelan, Jr.
Named
systems and procedures
officers were Ralph V. Lenat and

gess, Monica

The Franklin National Bank

o

of

New

York

City

Bank

has

appointed the
following
men
Assistant VicePresidents:
Richard
V.
Banks,
Robert

P.

C.

Anthony

Fallon,

Howkins and Robert Swanson.
The

Bank

William

C.

Cashier

has

and

Manager,

also

appointed

to

Assistant

J.

Jehlen

Green to

Harold

r

common

capital stock from $14,302,000 to
$14,800,000 by a stock dividend,
effective Feb.
16 (number of
shares outstanding — 2,960,000
shares,

to

$15,000,000 by the sale of new
stock, effective Feb. 16 (number
of shares outstanding — 1,500,000
shares, par value $10).
;

Boyle, President of

J.

Bank

National

Eastern

Smithtown,

announced the
Cameron as

I.,

L.

of

of James N.

election

Director.

a

■'v; : ft

■

Clark

ft

ft

E.

Dixon, Vice-President
County Trust
Plains, N. Y„
Pleasantville office, retired Feb.
27 under the bank's pension plan.
in

charge of The
Company's, White

opened
Park,
78th in

He

with

been

had

its

63rd

Road

block

and

from

97th

Street,

Queens

The branch will be

one

Boulevard.

in

temporary

quarters pending completion of
permanent

and

the

predecesor

company

bank

member

a

as

antville

with the

of the Pleas¬

advisory board.
National

First

Bank

of

Cort¬

Henry and Howard S. Shulman as
Vice-Presidents of Manufacturers

increased
its
common capital stock from $700,000 to $800,000 by the sale of new
stock, effective Feb. 13 (number
of shares
outstanding — 16,000

Trust

shares, par value $50).

land,

neighborhood.
ft

ft

®

The appointments of Edward A.

Company, New York, are
announced by Horace C.
Flanigan,
Chairman of the Board.

Mr.

Henry joined the bank in

Mr.

ft

Edward

1937.

Shulman

worked

the bank

in

various

Assistant
Mr.

Vice-President.

Henry

bank's

departments.
he became an

1952,
is

Fifth

Avenue

to

the

Office

at

Fifth Avenue and 43rd Street. Mr.
Shulman is assigned to the bank's
West 43rd Street Office at 681

Eighth Avenue, New York.
ft

Stanley

ft

has

appointed Secretary of The
Hanover Bank, New York, suc¬
ceeding Dwight A. Home, who
has been elected a Vice-President
the

foreign division.

the

bank's

Mr.

Mount

?"
van

;

.

Street
.

office

.

den Heuvel joined the
as a Trust Represen¬

tative.

He

Assistant

personal
and

had

was
appointed
Vice-President in

trust
been

division

in

assigned

to

an

the

28.

From

1921

in

Company,

Denton, Vice-Chairman
of the Bank announced.
R.

Frank

joined

Latimer

was

a

the

bookkeeping
departments, and
In July,

was

elected

1939, Mr.
Assistant

Cashier.

Mr.

Francis

the

J.

Kittredge, As¬
will move from

Cashier,

bank's

to

assume

in

the

office
Mr.

Main
Mr.

at 344

Main

Lindberg's

Office

St.

duties

opposite City

Richard A. Gabrielson,

elected as Assistant
Cashier, has been assigned to take
over Mr. Kittredge's duties at 344

Division. In 1952 he was
appointed Assistant Secretary, and
ning

trust officer in 1954.

Street.
ft.

ft

Frank

Wittland, President of the
Union Savings Bank, Conn., died

Mr.
Home, appointed
Secre¬
tary in 1956, joined The Hanover

Feb. 23 at the age of 64. Mr. Wittland started his banking cajreer

and

Del.,
under
the
the latter and under

Wilmington,
of

charter
the

title

Wilmington Trust Com¬

the

at

effective

close

of

business Jan. 30.
ft

ft

ft

a

of

Ohio,
$500,000 to

$750,000, effective Feb. 17 (num¬
ber of shares outstanding—37,500
shares, par value $20).
ft

The

ft

ft

American

North

Bank

Company, Cleveland, Ohio,
consolidated
with
Central
tional Bank

will

as a
ViceNational, he
Manager of the

capacity

new

as

serve

Office

Collinwood

Waterloo

experience

in 1923 and includes all
phases
of commercial banking.
He will serve as Assistant VicePresident for Central National at
the Collinwood Office.

began

American

of Cleveland on

and has been at the Unionsince 1947.
He was
elected
an
officer in 1952.
He
will continue at the Union-93rd
Office
as
Assistant
Cashier of
Central National. His diversified
Office

93rd

ft

ft

At

meeting of the sharehold¬
The Michigan Bank, De¬

a

of

ers

Mich., held Feb.
19, an
approval was given to increase
the common capital stock of the
bank from $1,000,000 to $3,000,000,
it was announced by John C. Hay,

troit,

is

increase

The

the

par

be

to

was

Na¬
Feb.

March

the

election

of six former

value

of
ft

ft

each

$10

officers of Central National Bank

President Ben
New Vice-Presi¬
Central
National
are

announced by

Hopkins, Jr.

dents

of

Seliskar, Raymond F.
Breskvar, Raymond E. Rossman

John

at a

Bank

of

Okla., increased its com¬

capital stock from $100,000
to $150,000 by a stock dividend
and from $150,000 to $200,000 by
the sale of new stock, effective
Feb. 19
(number of shares out¬
$20).
ft

ft

Mr.
sistant

City, Mo.,

Louis J.

Con¬
head

of

18

San
an¬

by President S.

Williams, who is also As¬
to
the
Controller, heads
Customer

Bank's

the

Research

activities

Services

which

de¬

the
current' Bank .of
America Charge Account Plan. ^
veloped
A

since

banker
with

when

Philadelphia,

in

pany,

1934

the Pennsylvania

we

Com¬

Pa.

Mr.

Williams joined Bank of America
in 1947 as Chief Position Analyst
in the Personnel Relations

Depart¬

ment.

Director

of

He

has

served

as

personnel research

ganization

and

planning

of

or¬

and

was

named Assistant to the Controller

increased its com¬

capital stock from $1,000,000
to $1,200,000 by a stock dividend
and from $1,200,000 to $1,500,000

ft

ft

■

' ft-'

■

.

Edward

D.

Bodman

has

appointed

an

assistant

trust

n';v "

been

in¬

vestment officer at Crocker-Anglo

administrative

Bank's

National

headquarters in San Francisco, it
was announced by President Paul
Hoover.

E.

He

in

Crocker-Anglo

joined

August of last year as an invest¬
ment

analyst and will continue to
in that capacity in

serve

his

new

post.
Herbert

Vice-President

B.

the invest¬
analysis
division
of
the
Bank's trust department.
is

Drake

manager

of

ment

ft

ft

ft

stock dividend, the com¬
mon
capital stock of The United
States National Bank of Portland,
a

$20,000,$22,000,000, effective Feb.
(number of shares outstanding
—1,100,000 shares, par value $20).
Ore., was increased from
000

to

16

ft

ft

H.

ft

Collie

>,

has

been

appointed an Assistant General
Manager of the Bank of Montreal,
Canada,
at
the head office in

it

Montreal,
years

of

the

announced

was

Collie

Mr.

27.

Feb.

for the

on
past

has been superintend¬
business development

department, whose operations he
will

ft

ft

of

Bank

died Feb.

ft

.

,

Ball, 61, President of

Gordon R.
the

direct.

to

continue

Montreal,

Canada,

Mr. Ball began his

28.

banking career 45 years ago with
the Merchants Bank of Canada at
Perth, Ont.

ft

Traders National Bank of Kan¬
sas

>'.•

Clark Beise.

mon

merged

was

The Merchants Bank
with the Bank of
1922.

in

Montreal

ft

ft

ft

mon

The Directors of Midland Bank

Ltd., London,

England, announce

imple¬
original intention of
rights offer to share¬

they now propose to

by the sale of new stock, effective
Feb. 19
(number of shares out¬

that

standing—60,000 shares, par value
$25).

making

a

holders

simultaneously

ft

ft

ft

Lester Kuhs was elected a

at

a

recent

direc¬

Louis, Mo.,

meeting of the board

Reid, Presi¬

dent, has announced.
ft

ft

ft

common

from

$1,250,000 to $1,750,000 by a

stock

dividend, and from $1,750,-

000
new

to

$2,500,000
stock,

by the sale

effective

their

ment

with

the

proposed one-for-three bonus is¬
sue
which has already been an¬
nounced.

They will offer 2,019,464 of the
existing (but unissued) £1 shares
shareholders who were on the

to

capital stock of
The First National Bank in Fort
Lauderdale,
Fla., was increased
The

A.

and Gerald A. Herbison.

Feb.

nounced

ent

Dewey,

'■/

America,
California; was

Francisco,

four

ft

National

First

of¬

ficers of North American Bank as

F.

accom¬

price of $50 per share.
The

Bank

of

Wallace

President.

of directors, James A.

The

office

By

ft

28th, 29th and 30th of¬
fices of Central National Bank.
come

trollers

years

tor of Baden Bank, St.

on

for

Bank

2, the three
North American Offices will be¬
business

the
15

served

has

Strekal

Mr.

North

,■

P. Williams in the
Department at the

Joseph

Assist¬
Assistant

American

banking

His

Bank.

•

Promotion to Vice-President for

an

and

North

of

Secretary

$*

in 1954.

been

Vice-President

ant

15610

at

Road.

Sistek has

Mr.

Effective with the opening of

28.

a

and

President of Central

Findlay,

from

North

in
Vice-President.
1942

standing—10,000 shares, par value

stock dividend, the com¬
capital stock of The First

By

elected

was

his

stock of

with

merged

was

Wilmington Trust Company,

into

was
ft

Bank and
Milford, Mil-

of

Company

$250,000,

1957

joined
in

Bank

plished through the sale of 20,000
shares of new common stock of

.

National

First

The

ft

ft

ft

recently

Main

Mellon

1949 in the Estate Plan¬

Bank in

Assistant to the Of¬

as

Manager.

Lindberg

he

1933

statement

also acted
fice

to

Bank
and
Pittsburgh, Pa.

National

Mellon

Trust

American

Vice-

President in the Trust Department
of

,

ft''.'

was

main office.

the

banking background
covers
all
has phases of the bank's operations.

Jr.

Assistant

appointed

been

a

Chrysler office.




'*i»

Latimer,

H.

William

Eight years later he be-" mon
teller, which position he National Bank
occupied for another two years. was increased

came

has

granted by the Comptroller
in Washington.

pany,

clerk and book¬

as

office

the

for

Approval
been

of the Currency

keeper.

1956

the

of Feb.

as

employed

Hall.

bank in 1955

Lindberg,

Lindberg has been with the
since August, 1911, when he

sistant

Mr. Home leaves for London
March 11 and will be assigned to
there.

was

and

Heuvel

been

in

Mr.

supervisor

ft

den

van

McKeesport, Pa.
project will be
installed in a building at Sixth
Ave. and Walnut St., not far from
the McKeesport Community Of¬
fice
of WPNB.
It will be the
bank's 18th.loffice.
t
extensive

The

ford, Del., with common

Assistant Cashier has retired from

bank

assigned

ft

that Albert T.

nounced

October*

ft

L.

Na¬

Pennsylvania

tional Bank,

Trust

Clifford, President
of the Worcester County National
Bank, Worcester, Mass., has an¬

joined Manufac¬
turers Trust Company in 1928 and
In

York,

New

McKeesport

downtown

Western

by

ft

...

center

in

lished

'ft

■

through bank" and
will be estab¬

"drive

Mr.

a

building in the same

Special meetings of the share¬
holders of the banks have been
set for April 1, 1959. If approved
by shareholders and regulatory
authorities, the consolidation will
take place on April 3.
'ft

join

later

and

offices

Herbison

Mr.
,

In

banks

association

continue his

ment at

signed.

.

business development at

new

three

the

continue

will

he

at

com¬

capital stock from $12,500,813,750,000
by
a
stock
and
from
dividend,
$13,750,000

the Commercial Banking Depart¬

National

electronic

ft

ft

ft

in
Pleasantville, for nearly 36 years.
Mr.
Dixon
belongs
to
The
Queens on Feb. 27, its
County Trust Company's Quarter
New York City.
Club and will further
The new branch is located at Century
First National City Bank
new
branch
in
Rego

separate
meetings,
directors of The
Bank of Jersey
City and the West Hudson Na¬
tional
Bank of Harrison, N. J.
announce
that the agreement to
consolidate the
two banks has

with

of

boards

A

value $5).

par

William

National

Square,

its

increased

York

New

the

»

«

First

Franklyn

Island,

Long

of

tional

Following

the

First

been

Robert C. Predmore.

The

in 1922.

pany

partment, and J. Duncan MacLean, to Assistant Vice-President
in personnel administration.
Newlv-appointed Assistant

joined the com¬

Yedinack

Mr.

ft

ft

ft

Bank

to

000

Central Na¬
to assist

As Vice-President of

Spring.

ft

National

mon

As

nounced.

;

dent in 1956, he is in the aviation

Eugene L. Rooks, III, to Assistant
Vice-President in the aviation de¬

the

Duke,

Rouge,

Texas, increased its

Dallas,

bank's President, an¬
a
state-chartered St. Clair Avenue.
bank
Fidelity
Union
required
R. E. Rossman was elected a
authorization from both bodies. director of North American Bank
Boyd, Peter H. Goebels, John W.
Mr. Duke said that construction in 1957 and since early in 1958
O'Brien and Harold Walker, of
the
Bond
Department
and
of of the new bank building will has been the officer in charge of
Thomas M. Lawlor as Manager of start immediately for opening this public relations and advertising.

ization.

ft

Mercantile

Central

of

Baton

$2,000,000, effective Feb. 20
(number of shares outstanding—
80,000 shares, par value $25).
■

As

Treasurer.

and

of

Bank

to

ViceNational,
Mr.
Breskvar
will manage the
North American Office at 6131
den

President

F.

Roy

Board,

Reserve

Federal

and

urer

Newark,
approved
earlier this
month by the State Department
of
Banking and Insurance, has
now received the approval of the

ft

sale of new stock, the
capital stock of Fidelity

La., v/as increased from $1,750,000

■

election

the

department,

States

■-

.

national territorial organ¬

bank's

common

previ¬

increased capacity for the three offices and
from 86,000,000
to $7,000,000 by later will join the executive staff
the sale of new stock, effective of Central National at the main
in 1933. He has served in the op¬
Feb. 20
(number of shares out¬ office.
erations, personal trust and per¬
standing — 560,000 shares, par
Raymond Breskvar, a veteran
sonnel
departments and at the
value 812.50).
member of the -North American
Chrysler office.
ft
ft
ft
staff, began his banking career
J; /
ft
"
ft
ft
The application of the Fidelity in 1923; Following broad experi¬
William H. Moore, Chairman of
ence in
all phases of the bank's
Union
Trust Company, Newark,
Bankers
Trust
Company,
New
N.
J.,
for
an
office at Port operations, he was elected Treas¬
York,
announced March
3 the

appointed an Assistant Cashier in
1946, and in 1955 was promoted to
Assistant
Vice-President in the
United

had

ft

ft

the

By

served

of

stock
Bank

(number of shares outstanding
250,000 shares, par value $10).

Seliskar,

consolidation,

the

ously

State

an

John

and

President of
North American Bank at the time
A.

John

of

capital

common

Newark,

The

was

ft

ft

National

The

was

1941.

ft

elected

was

Vice-President

cashier
jf the Danbury
National Bank,
danbury, Conn., before going to
Union Savings as SecretaryHe

Company.

Trust

Assistant
Strekal
named Assistant Cashier.

Sistek

and

National Bank

City

with the

a

.

(1096)

Feb.

register of members on Jan. 5, in
the proportion of one new share
for every eight then held, at a
premium of 20s; i. e. at 40s per
share, payable in full on accept¬
Entitlement will be on the

ance.

number of shares held before the

of

addition of the proposed bonus is¬

13

sue;

i.

e.

the bonus issue and the

Volume

189

Number

rights offer will
the

same

The

5826

calculated

be

shares

with

shares.

the

The

ready

The Commercial and Financial Chronicle

.

.

on

holdings.

new

£1 shares
bonus

proposed

Directors

announced

have

al¬

that

they ex¬
pect, if the capitalization pro¬
posals are adopted, to be able to
declare, in July, 1959, an interim
dividend of 7%% actual and, in
the

absence

of

unforeseen

cumstances, to be able to
mend
the

same

the

rate,

making
capital,

increased

Group 23rd Conference
CHICAGO,
States Group
Bankers

March

18

annual

and

19

its

conference

at

the

Drake

Hotel.

Program scheduled will include

recom¬

15% on
for the

111. —The
Central
of the Investment

Association will hold

twenty-third

on

year; the shares now to be offered
for cash will be
eligible for these

March

18

a

municipal

panel

discussion, with W. H. Hammond,
Braun, Bosworth & Co., Inc., pre¬
siding,
and ; Virgil E.
Gunlock,
Chicago Transit Authority, Lloyd
M.

paid-up capital, which is at

March

18

Thomas

&
Weeks, Robert O. ment center at the Grand Central
The ex¬
Shepard, Prescott, Shepard & Co., Station main rotunda.
with Fred H. Gowen, MacKay- Inc.
(Cleveland), and James E. hibit which will show how elec¬
Shields Associates, Inc. as guest Snyder, A.
C. Allyn & Co., tronics affect a person's daily liv¬
speaker on "Outlook for Business panelists.
ing, help industry and protect the
and Securities Markets."
Final dinner will be held at nation's security is free of charge.
i
Dinner will be held at 7:30 p.m. 7:30 p.m. in the Grand Ballroom

blower

A forum will be held at 2:30 p.m.

in

the

Guildhall

the

of

Ambas¬

at the Drake.

La Grange to Admit

sador West Hotel.

On

March

19

Dan

A.

H. L. Turner

Kimball,

Mortimer, Cook County High¬

address the luncheon meeting on

Turner

"Aerojet's Role in the Missile and

1636

Space

in

Dearing, Illinois State Toll High¬

shares

offered

.; £23,560,410.
at

The

present

for cash,
published

amount

Department,

Charles

L.

Raytheon Display

A
three-dimensional
view, of
Merrill Lynch, Pierce, Fenner
& Smith, Incorporated, moderator, electronics in action by the Ray¬
theon Manufacturing Company is
and Erwin W. Boehmler, Invest¬
ment
Bankers Association of on display at the Merrill Lynch,
America, John J. Markam, Horn- Pierce, Fenner and Smith invest¬

J.

and

reserves

luncheon

McCabe, Scott Paper Company
the group on "Infla¬
tion in an Expanding Economy."

Age."

A panel

discussion

LEXINGTON,

a

III

has

North

Opens

On

Ky. —Henry

L.

opened offices

Broadway to

at

engage

securities business.

March

12

Eileen

tend, after the proposed capital¬
ization of reserves relating to the

How American-Marietta Has Grown

bonus issue has been
effected, to
restore the published reserves to
the present

figure,

by

transfers

from inner reserves; the addition

tp the share premium account
arising out of the rights issue will
further

increase

reserves to

the

published

£ 18,175,173.

'!•

*S>

&

20

&

17.6

Roberto de Jesus Toro has been
elected President of Banco
de
-

17.2

W

Ponce, Puerto Rico, one of the
leading
commercial
banks
of
Puerto Rico, to succeed Aristides
F.'! Armstrong who will become
Vice-Chairman of the Board, Felix
Juan Serralles, Chairman of the
Board
of
Directors,
has
an¬
nounced.

Mr.

Jesus

de

Toro

%
K

INCOME

ll.i
10

o

At

1953.

the

w4'

if

(f)

m

z

MM

wm

mm

IV:

5.5

0

li

Ji.

Jl

/4

3.8
3.0

'4%
HV

MM

ill

jS V:

1952

1954

1953

1955

x

x

PP

mm-

0m

V

mm

mm

PfS

m

same

A.

i!

mm

mp:
mm

wM.

mm,

1956

1957

1958

1956

1957

1958

announced the

election

ip

—

velopment Bank for Puerto Rico
to

MM

mM
XW&Sy

years.
Previously, he was VicePresident of the Government De¬

1951

mm

mm

u.

of

time, Mr. Serralles

cwwy.

fm&k

15

Q

Banco de Ponce for the past five

from

16.2

J

-I

o

has

been Executive Vice-President

200

NET

of

Julio

Banco

de

Torres

as

Vice-President

Executive

of

Ponce.

He

has

been

30

a

Vice-President of the bank since
1947.
All elections are effective

April 1.
Mr.

of

Banco

de

Ponce

for

CASH

25

Armstrong has been Presi¬

dent

FROM

the

eight years and has been
associated with the bank for 38
years.

'

20

-

•

FLOW

EARNINGS

(Not income plus accruals for
depreciation, depletion and
amortization)

past

Forms Prudent Inv. Serv.
BROOKLYN, N. Y.—Victor A.
Campanile is engaging in a securi¬
ties

business from offices

at

1138

Sixty-ninth Street under the firm
of

name

Service.

Prudent

1958

was

the ninth consecutive year in which sales

of American-Marietta

Mr.

Companile
was
formerly
with
First
Investors
Corporation and Vickers Brothers.

15

Company exceeded those of
10

Investment

the prior year. The

Company's Annual Report
6.4

covering its progress and major activities has been

-1.4.0
•

Forms S. E. Ind. Sees.

Union

Avenue

under

33,700 Shareowners.

1*'
1952

1953

firm

of Southeast Industrial

name

sent to

at 2071

the

■
mm
mm

MEMPHIS, Tenn. — William L.
Holloway is conducting a securi¬
ties business from offices

3
i

Se¬

curities Co.

j

With Baron, Black

■

1958 Annual Report

(Special to The Financial Chronicle)

BEVERLY

E.

Arnett,

Samuel

Sent

Hills, Calif.—Alfred
Herschel Chean and

Chean

are

now

on

Request

with

Baron, Black, Kolb and Lawrence,
Incorporated, 253 North
Canon
Drive.

Address

Joins First Southern

Department 4

(Special to The Financial Chronicle)

ATLANTA, Ga.—Wade B. Rothwell, Jr. has joined the staff of
First

Southern

Corporation,

American-Marietta

•

!

70

Fairlie Street, N. W.

Company

A. G. Edwards Adds
(Special to The Financial Chronicle)

ST.

LOUIS,

Mo. —Edward

101 E. ONTARIO

J.

ST., CHICAGO 11, ILLINOIS

Braun, Beatrice M. Kadas, Jerome
F.
Kircher, William R. Maher.
Bill F. Sarni, Joseph P. Tzinberg
and Robert C. Bauer
G.

Edwards

are

with

A.

&

Sons, 409 North
Eghth Street, members of the New
York

and

Midwest

Stock

changes.




Ex¬

MINTS

•

INKS •

DYES

•

CHEMICALS

•

M.

La

Grange, formerly a limited part¬
ner, will become a general partner
in La Grange & Co., 61 Broadway,
New York City, members of the
New York Stock Exchange.

to

£16,155,709. The Directors have
already announced that they in¬

21

son,

Aerojet-General Corporation will

way

the

At
B.

will address

will be held at 2:30 p.m. on "Sales
Tools to Work With," Robert Ma¬

Johnson, Chicago Department
Streets and Sanitation, William

present
£16,155,709, will, after
the addition of the bonus shares
be

and

Commission, Roy H. Ander¬
DeLeuw, Cather & Company,
George W. Burpee, Coverdale
Colpitts, as panelists.

of

dividends.
The

son,

and

cir¬

final dividend for 1959 at

a

(1097)

way

Central States IBA

will rank pari

with the existing

pasu
and

.

HOUSEHOLD PRODUCTS • BUILDING MATERIALS

•

CEMENT

22

The Commercial and Financial

(1098)

Chronicle

.

.

Thursday, March 5, 1959

,

tailored to match changing condi- public interest in wiping out feathspread:;:, tions/- And no one can deny that erbedding with just two specifics:
between yields in London and in: revision is long overdue in railGives Two Specifics
^
Wall
Street
is no
longer fully loading. That fact has been atFirst; the peace of the world—
justified.
" tested to by the highest authorities
and the continued freedom of our
The situation is, of course, alwho have investigated the probways
liable to undergo an un- lem, including representatives of own country and all other free
favorable change from the point the Congress. Presidential Emer- nations—is utterly dependent to¬
Accordingly,

British Investors' Dilemma

the

By PAUL EINZIG

peoples, take

many

view that the existing

.

investors' stock buying and
selling decisions due to uncertainties revolving around the date
and outcome of a general election, the course of the yield
spread between comparable British and Wall Street stocks, and
other factors, are probed by Dr. Einzig. In revealing the vari¬
ous cross currents, the
columnist concludes that the British
investors9 present response to their dilemma is "if in doubt
Considerations underlying British

without
^

,

.

„

a

nothing."

do

4.

.

.

„

cations of a decline in the Government's popularity would make.it
certain that the election would be
February, the postponed to the autumn and this
'
would induce many investors to
get into the market and remain
in it in anticipation of business

LONDON, Eng. — Following on
the sharp decline on the London
Stock Exchange during January
and the first half of

tone of both

equities

and

government
loans

during

The

past fort¬
night was one
of

equilibrium.
of

sections

the

Stock

Exchange
covered
of

the

re¬

some

earlier

losses,

but

move m e

nts

are

in¬

now

clined to

Einzig

Paul

be

erratic with
definite

too

Times

trend

index

of

The

Financial
t-U-ll/V l/U/l/
v I

AAV

A

•

Stock

Exchange

about the prospects.
A few weeks ago
In the chances of

withdrawals £than

„f.indnrH4;

election

general

later

not

than May. Although a spring eleccan
not be ruled vuv
mavvt
j1juoi
out, most
«

of

election

VIAJLVi

W

__

prospects, trade prospects
Wall Street tendencies.

currency

not take place until the

early

the

and

dollar

was

a

hard currency. As a result of the
restoration of sterling's convertibility on the one hand, and of the
development

of some

degree

uneasiness about the dollar

of

be

a

and Wall Street prospects, many investors are inclined
to adopt the old British naval prin-

rencies is now decidedly smaller, ciple of "if in doubt do nothing."
'
—~~~——~~—*—

rnMtinnprl

*

—

r

.

irmn

nnno

~

—

—

A Realistic Solution for

trade recovery

Rails'

burner rules

A

anrl tlun-elw tn heneflt lw

bu^ncss
FxAianS nvfpp«
^ExchannfS/

hiicihom reenverv
ronrnmnr

naradoxipal

^itnntiAn

connection

for

The

worthy

Januarv

eauities'

pressing

am**

in

nnhhration

announcement

This

instead
caused

recovery on

of

JnStf

,

e

of
n

de-

note-

the dav of the

these

figures

d

thl

on

mil*

nn

scene, we will

to a wholly new era in rail¬
roading, a new era of vigorous
and lusty service to our growing
America.
What

.

we

iron horse from
I don't mean
* uuu t iiiccm

add

also

still

require

the railroads. Full recovery

sonal comment.

inP

an

flated m,mber of men on tralns
o«n-piuyciicQ passenger cars
and se44-ProPelled passenger cars
sur-

of thS

paramount,
security importance to the AmetiA
railroad industry is of

can

people.

.

Second, President EisenhowpL
in his annual economic message.
'

to

it.

an

Congress last month, called fpr
all-out national campaign 3

that tf£e

halt inflation. He warned

strictly

a

jjfc

transport would be entirely
adequate to carry the load. R£*
liance would have to be placed ;cui

/<.•,

Recovery Has Started
me

War

World

its chronic sickness.

Let

the
conditions
II, highway and

under

that

do now can mean final

of the

recovery

passenger

imposed on them in the
last war. It is also a blunt f?tpV
which we cannot afford to ignore,,
volume

win- hp

way

military

the

handle

,dfh

per¬

I did not become

i did not become

States

United

creasingly

%

become

can

prosperous

only if^jt

against price

line

the

holds

of affirmative action to cure their
ills. We are not going to be content with half-way measures. And.
we shall seek the help of all individuals
and
groups c with
the

There is

railroad

---1-

ai-»

-

A

-

—

-1a

1

or

int

-

rules
.
.

.
.

.
.

our

mendous

against inflation. For nothing, is
inflationary than pay for»

more

work

not

not

for services

done,

performed, for goods not pro¬
duced. Featherbedding goes hand
in hand with the high and rising
ro<?t of living.

i/VThen

.

r.

still a :

must recognize

we

pressingly im¬
of the public
times of up¬
heaval. America cannot afford the
and

third

-

which limit their creative ability
and their output and detract from
their dignity
rules which are
thoroughly un-American in conengineman." •
•
«
cept ^economically desth-"--The Commission, significantly,
practice.- >*'
was not impressed with arguments
not impre
was
If railroa'd labor leaders were
that
w firemen; are necessary for before• me, I would plead for them
- "

more

mediate

symbol

interest.

In

these

luxury of

labor-management dis¬

cord in

vital industry. Nor can-

a

it tolerate work stoppages

economy

plus men may have been truly safety reasons. It made on-scene to join us in forging this new era
needed lonA ago, but no more.
studies of train operations with—of growth .and greatness. A halfP°sit|on of diesel firemen out firemen on this continent and-million' railroad jobs have been
a easo 111 point. They once jn Europe and found their safety lost in the last dozen years. Unsbovie
mounds of coal into experience comparable to opera-v less we solve our internal and
F.lan!: s^amers and were among tions with firemen. I might add external problems, more thousands
*be hardest workers on the rail- that over-all railroading is no dif- of jobs will go down the drain.

.

nation

The

trouble

from strikes in air
I do not

I

say

but

a

if train

'
V
emerged
resulting

just

has

serious

from

•

that would come
turning.

stop

wheels

and the

grinding down of thC1

inexorable

_

_

a tre¬
contribution to the fight

would/ represent

dustry

I

rules
*u«;b

and

make-work

featherbedding in the railroad in¬

force

deadly

the

year

a

non-productive

more

workers must work by

dollars

half-r-bil¬
in wholly

of

elimination

The

lion

however, attacking and con¬

demning

"

no

work

industry in the nation.

any

am,

or are a me.ve duplicainspection, or are a me.re duplies
i
tion of what is discharged by another or others, as in the case of
the lookout functions performed
by the headend brakeman and the
4

labor.

conscientious

in

Complete Recovery

^ and work equipment. These

of unfavorable unemnlovment fiVures

;+

able

r\c<C

this

thi

,

®

great effort.
Now, I want to make, one point
crystal clear.' I am not attacking

au¬

on
which places unneeded men on
tSri
I0!
f
•
Si" trains just for the ride — excess
On Iho nfho
£ £ce'i!in-+ ayi baggage which displaces and pretako ninrp till fiw
?
emPts the j°bs of trully essential
be reasonqhlvcnVpfnr fmScKn
railroaders. Hoary-headed, coal-

...h
the httppt of the
effect m«hP

tt

.

in this

nil?6

on Stock

? *air aaS*
1 f,*

good sense to see what is at stake

11

from page Id

Is expected to take place
during
the spring. The effect of such a

transportation have a right to J)2
proud.- But we must also be
deeply disturbed over the fact
that the railroads do not now hgv£
the
equipment and capacity $,&

A

dav's

fair

for "a

President of the Association oi
creases,
and called upon labor,
American Railroads to nurse this businessmen and consumers ?Jo
proud industry through its last
join the government in a drive,
illness. Railroads remain critically
to
achieve
"inflation-free, sus¬
tential buyers and sellers on the ill, but they have started on the tainable growth." Wage gains that
Stock Exchange have to take a road back and they have strong
outrun
increases
in
industry s
view on the international political leadership throughout the country
productivity were singled out:'as,
prospects, the prospects of a trade which is determined on a program
a primary cause of higher prices.

the revival,

on

other, the difference between the
relative hardness of the two cur-

A definite postponement of
the election till October would be
&
bull point for the Stock Ex¬

^^mer

objective**

ahl

Work

and

tumn.

a

^avV

military
personnel. This is art,
achievement of which all of us in

this

Just half-way recovery to another
limping in-between stage—but all
These
various
cross
currents uie w?y' to full strength and new
jLiiese
wa
vision
and
yields of American equities, makes make it rather difficult for the growth.
This hard vi:
ours
if we

y

people now consider it much more
probable that the election would

change, because

^
fn;r

called upon to handle ovei'

,

90% of military freight and 97%
of
all organized ~ movements pf

the' railroads
to

,

the railroads*

World War II

In
were

ancient' work

qppvv onr Voal boils down

the dollar, at any rate for some..
time to come. In that case the'
difference in yields on equities
will narrow down considerably.
Finally, there is the international political factor.-The crisis
over Berlin is likely .to flare up
during the spring and war scares
are liable to affect both the London Stock Exchange and Wall
Street. The extent and duration
of such a crisis is anybody's guess,
The likelihood of serious trouble
tends to keep investors out of the
regardless

these

m^all

revision:;-of '

,

sonai comment,

thoughts.
Until recently it was
Widely assumed that there would

t

through

spring election and, if so,
whether or not a Conservative or
Socialist Government is likely to
emerge
from it. But when in
addition to this consideration po-

The popular response to
Mr. Macmillan's
decision
to
go
to Moscow gave rise to second

,

eminent is returned, sterling is
likely to be less exposed to pres-:

market

importance.

fair reassessment and

Actually

suddenly flares

is of transcending,

into a hot war,

with

peace

ing the next year or two. Until
recently a difference in the yield
appeared to be justified partly on
the ground that sterling was a soft

Socialist vie-

a

the market until after the

tion

Street

of the major factors.
Opening prices in
London are usually affected by
Wall Street's closing prices on the
previous day.
This influence is
no
longer purely or even mainly
psychological. Since the yield on
first class British equities is much
higher than the yield on the corresponding class of America n
equities a rise in Wall Street
usually stimulates American demand in London.
Cbnversely, a
decline in Wall Street, by raising
AAA
If IAXA
u.y
irtioiiis

the cold war ever

changes Hn> technology arid emhow- %ioyee^rformaiabe

way,

ever, and if a Conservative Govr

sure

must keep

standards

practical promise are seize
oi
will but reach out to sei

election.

general

Wall

out of the

is

rate

in event;

mobility of our nation,-

Onoe the general

considerably.
election

Bank

investors and their advisors to
take a clear cut view. It is difficult enough to make up one's
mind
on
the simple
question
whether or not there is likely to

tory at the general election caused
widespread uneasiness. Hence the
wave of selling by investors who
felt that they ought to be out of

a

of

course, one

the

raising

British equities appear less attractive to American investors.
Barring the advent of a Socialist Government this factor is likethe increase hy to play an important part dur-

prices is still well under its previous peak.
A feeling of uncertainty prevails among investors

be

influence

remains, of

uneasy

Both

between now and June,

recovery

the

day on the continued strength and
resources of America. The military

as a result of
gency Boards, the Interstate Comflight of funds frpm London in merce Commission and state reguanticipation of a Socialist victoryjatory. bodies.- It is also significant
The British gold reserve' is not that
enlightened labor leaders in
large enough to enable the British almost alll other segments of inauthorities to face such a flight
dustry recognize that job-output

Of view of sterling,

•

j

transportation,

belittle that trouble

when

that what we have seen is
token of the economic dis¬

roads*, N°w, as stated by the
^
i?
Anbitration

ferent here from the system across No labor leader wants that. And ruption and personal hardship^
our northern border. Canada has neither does any railroad official, railroad tie-up would bring.
So
additional
ara,,mn«f
' Case 140, "the change from steam shown the way toward truly modwhile we seek labor's earnest co-j
6nrinc " Wtinn
ga St 3 40 diesel nmr"- left little or ernized train employment. The
,iH,° ""
enrinc election
" to
power
bi X
Urges Five Brotherhoods to
g eiecxion,
operation in preventing full-scale
nothing for the fireman to do."
Join Appeal
lagging United States can do no
"crisis, we cannot bury our head
J? f
Pajadoxical situaCanada has demonstrated the less than catch up.
So I urge our brotherhoods to in the sand. It is time to face pp
UM X UIgt UUi uiuuiuiiiuuas tu
fS ° ,pub 1(; °Pmi01J high statesmanship required to
eurveys do not produce at present
;
v
hi
-,^1,
tu
lhe telling burden this type of net with ik to heln reverse this .to the possibility of tie-up—and
fla ni
flieir former decisive influence
on
a
/.h this problem. When "make work" imposes on the in- disastrous trend. Let's wine out time to take forthright action to
Stock Exchange tendencies.
In
S/|0n
firer" clustry can be measured in the an- Tcatherbedding. Let's stop pay- make sure it does not happen,}
I therefore propose this first step
January a weaker tendency de^reached a deadlock between nual cost of unnecessary firing ing men for Work thev don't do.
the problem of
^e|®Pe<^ some days before the
®
and jobs on U. S. railroads. This - Let's stop dissipating our life- toward* solving On the railroads:
featherbedding
was

because the unfavorable

unemployment

situation

was

an

•

'•"l

t

mi

,
—

mm

1

-n

anadian Pacific Railway

a

decline0in th^n' indicati"g
the
Government

decline

in

s

popularity in
gave

to

rise

the

country.

This

cynical

com-

some

eom^leak ofTnform^tinn^ bejn
vanee

of

the

figures. Today
hesitate

to

publication
most

relv
^

the

people^would
.vwmw

PvLiitrJi?
on

rely extensively

public opinion surveys in 4ecid-

Ing whether to buy

or

an

the

improvement of

sell.

For

Govern-

ment's

popularity might conceivably induce Mr. MacMillan to decide, after all, in favor of a May
election, m which case many inVestors would play for safety and
would get out of the market in a
nurry.

On

the

other hand,




indi-

goternmLn?1 L^Med T^Rn^l f.m0UI^s to and regulations fore- rules evervone' recognizes over
nment appointed a Ro>al lion. Rules more than $200 mil- blood in frustrating,"clashes
Commission of outstanding Cana- ing use of other unneeded men
5
k

operating
with railroad
who will 1 management in asking President
as

dian citizens to investigate. After bleed off another

I^dTcfdown'"ffor

$90 million.

a

Let's

stoi^areSna

over

That leaders of the train

un¬

brotherhoods
Eisenhower

moment "iow

join

to

'

partisan group
citizens to study

toric decision just a little more mucb savmgs ofthat magnitude industry's; dwindling income
lhan a year ago. It found the toe- would ^an to the public in the and turn /regain strength, expand
our eyes and hearts to
~ -7--o— ^ ^uiiuvuciucway 0f healthier railroads, more ways to
man's nnsiiiA^ ^ a;—t
way *~ses and
of healthier railroads, more ways to
expand
hran s position on diesel engines in purchases and supplier jobs—and -business .'regain strength,fruits of
business and divide the
tl

tion.-

name
; a'
noaof distinguished
this whole ques¬

-

••

*

,

freight

or

yard

service

unnecessary. At that stage
of the controversy, no other classes

of service were
Puted issue.
.

a

-

part of the dis-

obs
jobs

more

selves
feet
.

'

as

on the railroads themon the railroads themthey get back on their

new-found prosperity.
new-found

should

our
To our workers, I say,
their great hope for the
it is their oiily hope.
It
America's great hope to

this is
i*

future
is also
get the
to this strong railroads it needs for the
„

Long Overdue Revision

-

The
fireman's
functions,
the
Now, all I have said up
Commission concluded, "have point proves just this: Even the normal demands of commerce and
either totally disappeared, as in most reasonable work standard the unprecedented demands of war
the

case

of

the

production

of

power, mechanical assistance and

must

in time become wholly «nreasonable unless
improved and

Such

*

,

Let me illustrate this overriding

go

commission
to work immediately,
special

transporta¬
tion crisis, preparing an indepen¬
dent and objective appraisal that
.will protect the welfare of our
■country, the solvency of the rail¬
road industry and the security of
well in advance of any

its workers.
*

emergency.

a

We

all recognize

:

what exceedr

ingly heavy burdens are

carried

•

Volume

189

Number 5826

by the President, and

.

.

The Commercial and

.

of

none

us

would

unnecessarily add to these
responsibilities. We feel, however,
that our urgent request-is

justi¬

fied

because

national
solution

the

of

to'

: the

Accordingly, I
letter

to

operating
them

to

sound

a

sending today

am

the

leaders

of

brotherhoods,

join

railroad

of

featherbedding
•
(

problem.
a

transcendent

significance

with

in

presidential action

sipn'; Labor

other

requesting
Commis-

a

on

do

can

asking

and

me

executives

the

the

nation—

and itself—no greater service than

to^ join

Financial Chronicle

John

Phita. Sees. Assn.

B;

Muir

of Elkins, ■ Morris,
Co., and Frederick T. J.

Stokes &

Clement of Drexel &

Appoints Committees

Regional Inv. Co. Opens
BROOKLYN, N. Y.

Co.

Membership Committee: Phil¬
lips B. Street of The First Boston
PHILADELPHIA, Pa.—Spencer
D.
D. Wright, III, of Wright, Wood & .Corporation, Chairman; John
Foster of Studley, Shupert & Co.,
Co., President of the Philadelphia
Securities Association, announced Inc.; Harry B. Snyder of Yarnall,
Biddle
Co., and William
Z.
the appointment of various com-....
mittees of the Association to serve J- Suplee of Suplee, Yeatmari, Mosley
Co., Inc..
■
*.
for the ensuing year.
v
;
Program Committee: Warren V.
Gordon^L. Keen pf.R. W. Press- Musspr of Philadelphia Securities
prich & Co. was named Chairman
Co., Inc., Chairman; William A.
of the Arrangements and Outing
Lacock of E. W. Clark & Co., and
Committee, and Henry McK. In- ; Richard M. Newnham of Brooke &
gersoll of Smith,- Barney, & Co.,

have formed Regional Investment

Company with offices at 1251 East
56th Street to engage in
ties business.

industry is

our

matiagement
catinot

need

shrink,

too

we

from

seeking it.
people themselves

Tnl American
h&Ve

help.-And

much

at

stake

*

-

securi¬

a

CLEVELAND,
Ohio
has joined
the

Chris
staff of
Jaffe, Lewis & Co., 1706 Euclid
Avenue, members of the Midwest
Stock Exchange. He was formerly

Planning

BROOKLYN,
N.
Planning
Company

Y.

With Joseph, Mellen

has

v

to

in

engage

business. Bernard L. Sorkin is sole

>

proprietor.

:

.

bers

of

the

QUEENS
<H.

VILLAGE, -N. Y. —
is conducting a

222-13

Ninety-first Road under
name of Security Invest¬

the firm

Eshleman Co., Chairman.

ment Co.!

/'■'

-

'

ated with Pitser &

Hillsboro Street.

outcome. Only through the whole¬

hearted
can'

cooperation of manage-

labor and public leaders

lirept,

hope

we

to

free

the

nation

Highlights from COMMERCIAL CREDITS

fr$m the wastes of featherbedding
ajrd from the multiplying penaltie^ of a weakened industry.

In closing,,, let me say again to
shippers and to all America that
railroadmen know only too well

that the road back for

try1 is

rugged one—but

a

tend to

our place

progressive
moriths

is

ne&d

your

when

being

this

decided,

FINANCE

warmhearted

understanding. In return,
you

Wholesale

we

in the
will understand best

Financing

Equipment Financing

Moore Retires

Chi.

as

m tfc

.-CHICAGO,

111. —Harold

Financing

Net income credited to earned

'j-'

47 699 540

48 247 279

$

...

51 264 443

$

24 367 474

21 444 888

Moore, Senior
Chicago
Title

Vice-President

Common shares outstanding at end of

RESERVES:

Com¬

INSURANCE

Reserve for losses

COMPANIES

Unearned income

28,

continue on the board of directors
of-the company.
Mr. Moore entered the employ of

Chicago Title and Trust Company
in;i1931, became Vice-President in
1937,
retained
his
position
as
Vise-President and was elected
Treasurer

in

1945

and

26 896 969

$

$529

period

,

$5 33

;

5 045 565

.5 066 255

...

.,

f

1959

He will

pany,. .retired/. on
Feb.
after 28 years of service.

26 802 391

$

...

Factoring

of

Trust

and

surplus...

Net income per share on common stock..........

Direct Loans

A.

;

98 963 983

Rediscounting

Title & Trust Exec.

-at?

operations, before taxes.......

$

42 732 824

...

United States and Canadian income taxes

;

-id

90 980 103

$

...

.

.

Fleet Lease

;

charges.

Interest and discount charges....;............
Net income from current

benefits for all the nation.
■

Net income before interest and discount

Financing

Commercial

rebuilding of a great in¬
dustry, in new achievement and in
4J'J,

$ 174 725 311

v

NET INCOME:

Financing

Instalment

-—in the

nbw

163 672 045

S

...

COMPANIES

will

support

will express our gratitude
one way

GROSS INCOME

crucial

we

1957

1958

a dynamic,
During the

as

business.

ahead

isstie
and

we in¬
nothing undone to

leave

regain

47th ANNUAL REPORT

indus¬

our

receivables....

Available for credit to future

Credit Insurance

Operations shown separately

Health Insurance

..,v

18 617 824 ;

$

...

instalment receivables.....

Unearned premiums-Insurance

Automobile Insurance
"

on

on

are,

Companies

c.

•

A*

27 954 932

.

125 710 001

$

...

80 900 216

31 915 207

/

$

131 985 640

$

918 171 114

briefly:
'/'i

Life Insurance

19 170 217

$

79 137 245..

operation's.1 .;........—

"

FINANCE COMPANIES:

Senior

*

Vipe-President
been

Director

a

since

in

1946.-

President

Chicago Title

the

of

He

and

1947.
also

He

company

served

Director

a

"1

has
as

the

of

and Trust Building

Corporation.
following his retirement as an
officer of Chicago Title and Trust
Company, he will continue to

Gross receivables

MANUFACTURING

'

and other retail instalment

COMPANIES

an

office

in

the

company's
building at 111 West Washington,
Chicago. He will remain as Chair¬
man

of the

tee of

the

Coordinating Commit¬

strengthening of the central busi¬
ness district of Chicago.
:

"

wholesale notes and advances.:....,

Pork Products

Factoring,

c

;

_

-

NEWARK.

is

business

open

...

1 553 479 488
1 227 421 903

154 641 630

131 365 861

$3 224 486 855

$3 830 438 366

$1 338 455 714

$1 447 184 063

loans..

c
Total receivables
*

acquired...

...

Total receivables outstanding December 31

Malleable, Grey Iron and
Brass

1 105 596 313
1 195 540 684

...

accounts, notes, etc......

Direct and personal

Heavy Machinery
and Castings

Net income of Finance

Pipe Fittings

Metal

...

...

16 257 950

$

...

Companies-...:.:.:...:.:.'!..:.....

$

$

27 727 167

$

15 824 956

Specialties
.

INSURANCE COMPANIES:

Roller and Ball Bearing

Written

premiums, prior to reinsurance

Earned

Equipment

premiums

N/J.:—The Equity

conducting
from

a

offices

Officers

securities

at

Alan

are

60

't

34 632 251

.

(including Cavalier Life

30 052 311

r.

1

35 161 496

6 820 050

'

•

'Pyrotechnics'
Printing Machinery

MANUFACTURING COMPANIES: ;
t

.

Net sales...:

Park

Turtle-

-

7 906 844

Machine Tools

Toy Specialties

Equity Plan in Newark

Place;

Metal Products

Net income

i

Plan

768 708 228

$

Chicago Central Area

Cp m mitte e, an organization
formed in January, 1956, to work
forthe
improvement
and

t

...

Motor, farm equipment and other

..

have

.

acquired:..

Motor, finance leases and farm equipment

<

...

%

133 233 066

$

136 321 975

Valves
4

2 637 597

Net income:.....

4 251 963

taub, President; Owen C. Meddles,
Vice-President; and E. R. Soffer,

Secretary.

,

.

X

,

J. E.

'
Offering services through subsidiaries in

Conroy Opens
.

^ WHITE PLAINS,

a

*:

Louis Busell

Louis

Busell

is

,

more

than 400

offices in the United States and the Dominion of Canada.

Commercial Credit Company
■

-J,'

"

secu¬

rities business from offices at 234
Avenue.-

.

N. Y.—James

E:\Conroy is engaging in
Marine

i

Opens
conducting

a

securities business from offices at
60 Knolls
Crescent, New York

City.




Copies of our 47th Annual Report available

Stock
"

V

Ex¬

: 4

i

<

.]

RALEIGH, N. C. — Joseph 1VL
Broughton, Jr. has become affili¬

the

on

:

(Special to Thb Financial Chronicle)

Rosen

offices at

Midwest
V

Joins Pitser Staff

-

securities business from

Cot;^

CLEVELAND, Ohio — Florence
joined the staff of
Joseph, : Mellen & Miller, Inc.,
Union Commerce Building, mem-s
G. Duncan has

Security Inv. Co. Opens
Jacob

Feaibbcly

(Special to The Financial Chronicle) •

change.

WebbeiV

of, Kidderyf

been

.securities

a

P.

Ji?:

Scott

—

formed with offices at 40 Lincoln

Rowe, Jr. / of /; Paine, G%irmsin, aiid jWallace Peterson
ackson & Curtis;. John * of
Boenning & Co.
McCoy of Tlta'yer,,Baker & Co.; -;
Public Relations Committee: E.
Robert S. Marsh oil Schmidt, Rob¬
erts & Parke;'Willard M. Wright,' Howard York, 3rd, of Doremus-

—

Markos

w

Road

Jaffe, Lewis

(Special to The Financial Chronicle)

with John S. Green & Co.

,

Forms Scott

.

£6ing to be the most difficult
lapbr issue ever faced in railroad¬
ing. Both the brotherhoods and

Joins

Raymond

—

L. Simon and Leon A. Friedenthal

^

us. now in seeking the
government's -help
in laying
a
Vice-Chdirinan. - Others
oh^ this^
basis for sound, new work stand¬
committee are: John As Thiers of: k.^Directory' Conim ittee: John C.
ards in the railroad industry.
~
JanneyV' Dulles ■:& -Battles, '.Inc.; Van Roden of Boenning & Co.,
; VThe job of breaking the feather-*
Robert
G.

bgd chains around

29

(1099)

Baltimore 2, Maryland

upon request

Company, 615

The Commercial and

24

Financial Chronicle

Thursday, March 5, 1959

.

..

(1100)

By RICHARD E.

bordering on the capricious.

Life Insurance Company,

success¬

<

X want

to

things:

chemical in¬

dustry. Sec¬
ond, how a
long-term in¬
vestor

Investments

mvcoimvu™

trates

ical

together

put

from

the financial
It shows the

books and manuals.
total holdings of

companies

ance

chem-r
industry
a

the major insurin
the
major

companies."

„

in eight, Metropolitan in seven, problem

chemical industry," certainly Wall John Hancock, Aetna and Mutual
Street does not think of. water 0f ^ew y0rk in five, Northwestcompanies as being part of "the ern Mutual in four, Massachusetts
chemical industry," although the Mutual in three, and Equitable in
water
companies probably pro- one>
duce
and
distribute
the purest
As far as common stock investchemical, which is obtainable in ments alone are concerned, New
the largest amount.
York
Life
had
investments in

com-

ana

consiaeration

them

may assist
tween
insurance

in

oi

creating bechemical

and

companies a greater
understanding.

of

area

mu-

tual

Now, what I relate should rot
interpreted as
the
official

be

thinking

of

the

New

York Life Insurance Company or
that I am speaking for all longterm investors.

What follows

my own personal

thoughts

are

on

this

we

nre

language

let

subject.
So

all be

we ,can

speaking the
me

sure

same

first define

term

a

r*——ii

-1-;—

is

thought of

,

a

long-term

investor

an

two
two.

or

_

Generally speaking,
investor

nmnnani'ps

two

who

is

,

„

_

,..

,

.

.

something

State of New York,
we

to
of

our

portfolio

and

Pfd.

(aha.)

.

(she.)

Common

Pfd.

.

•

•

•

«

•

«,

.«•

•

•

•

Pfd.

♦

s

*

*

•

»

•

•

•

Pfd.

Debt

•

.

•

•

»

It is

incongruities.

one

never

panies

as

thinks

being

a

of
a

example,

water

part

of

com¬

"the

'

•FVom

a

talk

by Mr. Woodbridge be¬
Chemists Asso¬




Travelers

Hut, of W.y.

Mutual

-yy'i

*

None

None

28,000

None

*

*

-\

.10,970

None

>

*

*

*

•

•

•

*

*
•

•

*

None

None

None

^ None

None

None

e

«

i

•

•

»

• m. *■■»■■■

*••••••

16,775
*

vV

•

*

*

e

1*,000

Nona

None

None

Hone

None

None

None

*

*

*

.fvr.

Heme

-

♦

*•

None

None

5,000

None

None

None

None

Mone;:

None

Nona

None

None

Nona

lone

None

Nods

hh

U5,ooo

None

None

15,000

None

None

16,331*

Nope

2,000

la,616

Bone

69,500

None

,29,500

v/

5,000

None

*

9*375

hi,875

1,000

None

None

10,836

Hone

3,000

Nona

3,500

Hone

None

16,800

None

None

13,500

None

None

None

19,600

None

6,000

None

None

9,100

Sone

None

None

None

None

None

None

None

Hone

None

3li,000

None

■

None

*

»

*

None

None

None

hoo

'

*

•*

e

*

*

'

None

None

None

31,800

None

None

None

None

None

None

Pfd.

(shB.) . »•#•.•••••••••
(shs.) ... .»»•••«••«•
($'s, 000) .
•••>'« e

*

«

*

*

»

3*175

*

*

#

None

None

2,500

None

None

•13,200

»

*

*

*

None
e

($*8, 000).. «a«e«eee«eee

None

None

None

None

None

None

None

None

None

♦

*

*

*

•

Pfd.

(shs.)
(ahs.) .
($'a, 000).

None

None

33,000

None

♦

Based

on

None
*

Hone

None
»

None

data published In "Corporate Holdings
Inc., Nee York.

Oil ted Statistical Associate*,

None
»

None

*

This symbol indicates that

the Coiqoany does not have any

nature

outstanding.

securities of that

.

J'

None

None

None

None

Hons

None

None

None

None

Hone

#

None
♦

None

of Insuranos Coi^Mnlss 1956"
And in the Fortune Directory.

figures should be considered as approximate.

i

Hone
:

•

*'

*

#

#

OaiERAL ANILINE
Common

iZ

:':n

•lone

2,50C

.1

Common

,

♦

*

None

ROHM & HAAS

Debt.

\v-:■

#

None

■

Comnon

f

-

\ VS)

'

(shs.)
(shs.)

■

Hone

50,000

None

MERCK

Pfd.

'

♦ •;

*

%

(sha.) »••«•••»••••*
pfd. (shs.)
Debt, (fi's, 000). . ... »«•••

Debt.

j ■

1,000

None

*

None

-;:yr

*

* •

None

•

»

30,250

*

*

*

#

»

*

#•

Cosuon

Debt

.

None

None

(shs.)
*

,

None

*

»

*

None

None

•

Hons

22,575

*

'

#

*

'

."V;

8,200'

Kane

y*.

•

*

2,000

Nona

10,000

0-J.ir

»

None

5,100

None

7,300;

In certain instances above

fore the Manufactu»"'ng
ciation, New York City.

(Hartford)

None-; :::

HERC'JIES

artificial

For

(shs.) .
(shs.)
($'■» 000)

(shs.)
Debt. ($* s, 000).

I like

term full

(Mil.)

Mutual

31,000

io,5oo

None

195^335

201,335

»

(sha.) • ..#•»•#■•••••
(she.)
($'s, 000). < » • • • •

Common

to think of the term, the chemical

rather

YY

*

•

28,500

Pfd.

To define "the chemical indus¬

a

61,125

John Hancock

CYAN AMID

Defines the Chemical
Industry

as

'13,500

125,3l»0

Hew York life

.

(shs.)
(shs.)
Debt. ($*8, 000).

to be almost negligible.

characterization.

ill ,200

None

Pfd.

Today the industrial securities
category is the second largest
category in our portfolio.
It is
interesting to note that 20 years
ago industrial investments were

of

None

#

Common

borhood of 20% of our total
port¬
folio is in industrial securities.

industry,

18,800
la,200

Equitable

1CSSANTO

neigh¬

try" is extremely difficult.

_

companies /

DOT
.

85% may be thought of as being
invested in debt type obligations.

as

__

Northwestern

life Asaurenoe

Done

».e

Debt.:

Company
approximate $6.4 billion. Of this
$6.4 billion very approximately

small

—

problem of key-man successionwhether that key-man is the president or sales manager? Is the
company attracting capable young
men—because it is the young men
of today who will pay back our
loro sometime in
future? Is
tt holding these young men?
I hope I have given some little
idea of investing from the point
of view of an informed investor,
Whether an electronic company,
a uranium company, a chemical
company, an iron company,or
whatand big, the procedure genyou will, new and small, or
°ld

Companlea (ae of Dec. 31, 1957)- — - —
"—;Uaseachu»etta
Aetna Life

of Aaerloa

85,700

•

•

Common

so

qpiikmies ii majcr chemical

Ten Msjor Life Insurance

Prodenttal

*

♦

ALIJED CHHNICAL

debt-type obli¬
give you some scale
of magnitude let me
say that the

the

p - - - - - - - - - - - - .. - - -

None

.
.

(t'a, 000).

Debt,

To

in

-

(she.)

continue to be in

something

— - -

it?

n^Vi^expected

UNION CARBIDE

gations.

Today,

«.

(ft's, 000),

Debt,

will

total admitted assets of the New
York
Life
Insurance

.1-nnn/iann

—

(H«w Tork)

Chemical Cospanies

(aha.)

Common

the

under which

still

—-

DUP0MT

While

stock, the bulk

is

3°b in assuring ourselves that the
tlninrf

„c

ibtropolltaa

operate, have been modified
permit us to hold a small

amount of common

—j

-

m m

exclu¬

of

letcoufin<B^y
and^ery
a™*e_ g

Houraos or major lot qspramac

Histori¬
insurance

Tan Major

face product obso-

and so on, let me confine my re- to do a better job of investing erally is the same.
of
:•
mainmg observations to the area ana
* often permit us to be of
that I
ice#
caiex"
of the quality of securities
Par?a£s lt J,*p*a
From the examination of the should have discus,
discussed, numerical
about evaluation—and this leads imme

10 to 15 years or longer.

have been almost
sively long-term lenders.
in recent years the laws

from

the past record expressed in ciassical accounting terms such as are
used in company financial statements. We look at the past record
of commercial-technical accom-

—
For example
—jf an investor, as a matter of
policy, invests only in bonds, he
n0^ have an investment in a
company that has no bonds out,
hut even though a company has
bonds out, an investor who buys

Parenthetically, just a word
here—there may be some of you
who have the feeling that this

n

years

drawing

First,

comnany.

area of security types and their
When it is possible to make
a°iiY, tbeiiame.s~duPont, relation to investment responsi- personal contact with a company
'
n" bilities and investment objective of course we can often get deeper
sant0' -Dow and so on.
—bonds versus common stock— information which will permit us

has

i.L^«

lescence?
: ■'
Now just what do we do when
Inasmuch as our ir<\estments
we, for example, attempt to evalu- extend out into the distant fuate the people who are a chemical ture, we try to do a very thorough

industry as it is generally thought

investing money in definition
tirVl
fivtinnfn
a business and -who
expects his
money to remain
invested from

cally
speaking,
life
companies, have been long-term
investors, and until very recent

A

-

plishments as expressed in prodtbouSbt of. as bein,f part
ucts, in patent records, in scienchemical industry.
bonds will buy those bonds only til'ic and technical papers. From
-Now
definition in if they have the required quality this we attempt to judge how suem*nd a list of companies can be aspects.
cessful the people in a company
dr!iw41?.up ^td^y well fits—
While there are fascjnating have been in the past and what
41S„
1S th£ cbtemicaJ problems in investment in the the Present situation is today.

^

as

1/3

..

.

general public. This eliminates
compames sucb as water compames' iron companies, sugar
companies —whose products are
oL
sulfuric acid but

'

chemical engineers or chemists.

connrifips

—^

-

PeoPle professionally trained as into us going to

synthetic fibers, companies
A table such as the accompanypaint? If there is any jng reflects many things—but let
■■ft JB coherence and sense at all in the rne just speak of two.
In order
R. G Woodbridge, III term "the chemical industry" as for any investor to make an inused and accepted today it prob- vestment in a company, a com-

These

and

economist, and financial analyst
must work together to interpret
present and also future intricacies
of all aspects of a business. For
example, what will be the inventory problems under adverse eco-

'

make

activities of

words

The scientific man, the

all disciplines at our effort.

We have in our investment de^
partment some 50 people who,
working together, bring to bear
on all investments their respective
specialties. We have a large group
of financial analysts. We have in
our
department an outstanding
Let me ask whether a company seven of these chemical compa- economist
and a staff to assist
that makes iron a chemical com- nies, with Mutual of New York him. We have in our department
pany?—or sugar?— or sulfuric being second with holdings in five, people with scientific, engineer-

that make

research

mon interest

command.

'

getting an un¬
derstanding of

chemical

business, economic and scien¬
tific knowledge possessed by those
of

Of the 10 major chemical com-

*

investment;
and, third, the
use of patents
as
an
aid to

the

it the entire background

bear on

future.
future.
1 ,
There are many approaches to
Let me say that the essence of
panies listed, New York Life had this problem of assuring ourselves a successful investment operation
investments as of Dec. 31, 1957, as to people. - We bring:to this such as ours is complete team
"chemical

„r

,

.

,

analysis," to 10 to 20 or more years. This is a
of any busi- difficult thing to do. We bring to

nomic conditions of a manufacturer of caustic and chlorine?
Another example—how certain is
the future for a new textile fibec
for which a company wants to
acid?
On a common shares basis, New mg
and industrial backgrounds borrow many millions of dollars
who are specialists
What do the statistics for "the York Life again led, holding a who are speciaL.^ in technologi- to build a new plant.
_
chemical industry" look like if we total
of approximately 137,000 cal businesses. You will be inAnother example —in view-of
include water companies, alumi- shares of the^conmion' stock of terested to know that we have in technical-economic developments
num
companies, companies that these chemical companies.
our investment department—three —is this company which has come

goes
evalu¬

about

ating

„

,

.

three

cover

long-term
investors,
as
exemplified
by
life
insurance
companies,
as
investors in the

fundamentals

in
our
investment department.
Each putting against the background of the future, as he sees
it in his area of knowledge, the
js people in which we invest. We specific company under considerhave got to look to more than ation, ascertaining as well as he
today's brick and mortar, today's may from his judgment of the
line of products. Our money is peoples and personalities involved
out for a long time.
When we how a particular group of people
make a loan,; for example, it has who are a business will meet the
to be successful into the distant changes to be expected in the

accompanying table illusthis liking.
It has been

The

appraising the intangibles. The insurance investment depart¬
ment bead, for'example, focuses attention on the use of. the
"du Pont formula," assessment of firm's personnel and per¬
sonnel jpractices, (insight provided by types and extent of
research and, importantly, the patent record. He tabulates the
holdings-of larger life companies in major chemical firms and
concludes long-term investing is "half science, half art."
V

the

ness—which is PEOPLE.
significance.
that long-term
Evaluating Chemical Firms
investors have liked and do like
We must assure ourselves as to
the "chemical industry" as that
the people in whom we invest our
term is generally used.
funds. And how do we assure ourInsurance Firms' Chemical
selves about people?—Because it

well known, Mr. Woodbridge's paper on how
evaluate chemical, or other, firms offers pointers on

Iirst,

"business

through

I think I can say

ful investing are
to

"security

But through
real

real value and

a

New York City

of

a

need, and in that sense has

human

WOODBRIDGE, III*

Aware that the mechanical and arithmetical aspects

belittle it. Ut fills

not

do

and present situation
to judge how a comevaluation," pany will behave over the next

diately to the subject of PEOPLE, past record
because you have got to see we attempt

not funda-

basic,

not

mental, perhaps even arbitrary—

Long-Term Investor Looks
At Chemical Industry

Second Vice-President, New York

is

that

it

A

Nona

f
None

None
*

None

None
»

.

None

-

Hone
•.

*

!jlone

o,i,>

.

Volume

139

Number

figures, ratios,
mechanisms

5826

The Commercial and Financial Chronicle

...

found that

arithmetic

or

which

ing

might
we use in
deciding whether
not a possible investment would
you

think
or

arithmetical

which

with

find

can

book

in

"duPont
A
a

method

of

company's

trouble

public

patent record.

instance
where

in

the

U.

know

past

have

we

■

I

ten

of

company"

no

years,

invested

in

a

have

Of

made

a
patent
patents must be

course

approached

with

real

a

Brown Brothers Harriman & Go.

under¬

Honors Thomas J. McElrath

standing and appreciation of the
many factors underlying a com¬
pany's patent position and activity.
You may be interested in some

figures
on
patents.
easily obtainable by

These

are

anyone

who

takes the time to count patents as
in the "Patent Office Ga¬

noted

we

zette."

use

where

first

not

study.

25

cessful

S. Patents Issued to

working through
financial
figures

/

knowledge

have found valuable in

we

"chemical

7

in

—

the

text

^

helpful

ascertaining the who, what, where,
when, and how of research
is

analysis.

Formula"

is

years

of

area

which

you

competent

any

financial

on

One

processes

little

a

company's advertis¬

getting an idea as to its record of
new products introduced.

be good or not.
We, please be
assured, look at all sorts of num¬
bers, numerical bench marks, and
l'atios, and go through a great
many

a

the

over

(1101)

Sales—195"

which I have found very valuable
is to apply what I generally think
of

the

as

"duPont

formula"

with

its attendant concept of return on

investment and supporting ratios.
It often

affords

an

sight

to how

a

as

ates its

important in¬

company

business, and

provides

oper¬

many

explanation as
behavior.
When

an

company's

times
to a
used

with

judgment and discretion the
"duPont formula" can be of real
value in

ment

elucidating

invest¬

many

situations.

;

;

:

This is not the place for a de¬
tailed presentation of the "duPont
formula."

But

for those not

simply is
tors

let

me

briefly

say

familiar

with

it—it

analysis of the fac¬

an

affecting

return

invest¬

on

ment.

'

You may

is such

compilation
a

to

be

the

sum

of

ing capital.
of

sum

The latter being the

inventories, accounts

re¬

"Earnings
the

ratio

percent of sales"
earnings to sales.

as

of

Earnings is sales less the cost of
sales; with cost of sales being the
sum

of mill cost

of

sales, selling

expenses, freight and delivery and
administrative expenses.
The

major value to me in this
analysis is that by applying it one
often gains considerable^ insight
into

a

a

what

with

help us get
going on.
the companies
is

it.

same

We do it for

they do

reason

';/'■■*./

-

Patent

studies

are

of consider¬

able assistance in many ways: for

company

and

under¬

an

fundamental

a

on

research

operation—say

Nobel

a

research

man
is now assigning
patents to another company. Pat¬
ent studies can be of help in as¬
certaining whether a company,

whose

of

area

business

is

being

"invaded"

(I use the term ad¬
by other companies, is
its research efforts

visedly)
turning
towards
ucts.

bulwarked

more

A

prod¬

in point is the "in¬
the organic chemical

which

is

just

the

of

one

which

have

to

many

be

given
trying to de¬
termine how well a company is
handling today its business prob¬
consideration when

lems of tomorrow.
Now about research.
all kinds of research:

search,

research

There

are

market

re¬

undertaken

to

determine best financing methods,
research undertaken by personnel

departments to determine for
many

more—but

myself

now

research

as

let

in

the

physical materials.
that

material

domain

of

To the extent

things

are

a

factor

to

as

the

basic

techno¬
a com¬

involving

such things as
processes, products, by-products,
wastes and so forth that on put¬
ting this whole picture against all
supporting technological-economic
factors and applying a little clear
thinking, one can, in a sense, build
up an "ideal"
research program
for
a
company
which
pan
be
matched
against past activities
and present and contemplated re¬
We

proach of

have

found

this

on

industry;

ment;

search

A

our

research

research

attention.

will

This sort of

embrace

of

Before

course

in

assist

an

*m

i

Home

Series

.

_

Market

issue of

new

eral

$96,000,000 Fed¬
Loan
Banks
3%%

F-1959

non-callable

how

long-

a

an

the

con¬

March

invest¬

of patents as
understanding re¬
I

want

to

Federal

rity

Home

Loan

dealers.

Net

proceeds

will

current

The

notes

how

ficult to

do

we

research?
do—and

It

evaluate
is

what

very
we

this

dif¬

really

do, though this is a gross over¬
simplification—is to evaluate peo¬
ple and what they are trying to
do.
Again we turn first to the

public

record.
In this instance
we lean heavily on technical and
trade journals as to who a com¬
pany's technical people are and
the type of quality of their ac¬
complishments.
We
also
have




a

of

procedure, it is far from

science.

ized

it

chanical
well

the

and

arithmetical

known.
of

It

is

thought
The

area

from

the public
used, together

be

funds

of

the

success

evaluating

in

the

France with the Medical Corps during World War I and has been

field, N. J., where he lives. Attending the presentation ceremonies
*n the Partners' Room at 59 Wall Street were (left to right in the
picture), L. Parks Shipley, Elbridge T. Gerry, Thomas McCance,
Mr. McElrath, E. Roland Harriman, Harold D. Pennington and
Frederick H. Kingsbury, Jr., all Partners of the firm, except
Mr. McElrath And Mr. Pennington, who was formerly a Partner

long-term

chemical

but is

now

retired.

Annual

Reports
Mail

edness

by $34,000,000, to
$706,235,000.

a

toal of

the

JAMAICA, N. Y. — Wall Street
Corporation has been

Securities

Street

with offices at 91-9
to

engage

in

Investors look to them for information

the

throughout

company

169th

year

when

on

planning

ADRllESSOGltAPII
SERVICE

securities

a

ANNUAL report to the Investment houses of

purchases for their portfolios.

Wall St. Securities

formed

your

Country.

your

business. Murray Kaplan is presi¬
dent.

We have

a

metal stencil in

for every investment

Smith, Holly Co. Formed
Smith, Holly Co., Inc. is engag¬
ing in a securities business from
offices at 40 Exchange Place, New
York City.

Form Venture
Venture Options,

with

Options

offices

730

at

country,

Fifth

arranged

Addressograph Department

our

banking and brokerage firm in the

alphabetically by

and within the Cities

by firm

States

and

Cities,

names.

This list is revised continuously and

offers

you

the most

up-to-the-minute service available.
Our

Inc. has been

Avenue, New York City to engage
a securities business.

list

charge

for addressing

(United States

approximately

or

9,000

envelopes for the

Canada) is $7.00
names

Canada.

United

in
1

Bateman, Eichler Branch

We

LONG

per

complete

thousand—

States,

900

in

■

small additional charge.

BEACH,

Calif.

man, Eichler & Co. has
branch
office
at
4252

Avenue

the

under

—

Bate¬

investors

can

also supply the

list

on

gummed roll labels at

a

opened a
Atlantic

direction

of

Floyd O. Mason.

Now

investment person.

Yes,

made

Home

sonalities that mark the successful

more

Comptroller from July 13, 1948, until Dec. 1, 1956,
a Manager of the firm.
He saw service in

was
was

me¬

aspects

in¬
tangibles, of looking into a cloudy
future, or judging people and per¬

the

and

when he

be character¬

can

might. be

half science half art.

as

are

If it

all

at

years

Mr. McElrath joined the bank on March 1,

in charge of the Accounting Department for many

was

were

in

of

He

Upon completion of the financ¬
ing the Home Loan Banks will
have reduced outstanding indebt¬

other
And

1909.

Banks, to retire $130,000,000
principal amount of notes matur¬
ing on March 16.

chemistry, physics, phasize this—successful investing
electronics, engineering and many is not a cut and dried mathe¬

sort

Monday, March 2, in honor of his fifty yeara

Loan

formed

matical

on

Board

priced at 100%.

em¬

in

fields.

luncheon

a

through Everett Smith, Fiscal
Agent of the Home Loan Banks,
and a nation-wide group of secu¬

use

close

I

dated

16,
Sept. 15, 1959 was
yesterday (March 4) by

and

offered

search activities.

a

||

»

rHLR NOIfiS OH

us.

I
have
things: lilfe in¬
as investors in

term investor evaluates

and the

ap¬

paper

three

companies

chemical

this

great value to

very

in

surance

for in¬

ing

service with the firm.

active in the American Legion and in civic affairs in North Plain-■■■

with

a

logical-economic aspects of

Now

us

worthwhile

and constructive uses.

offering

the

informed

touched

that

see

Thomas J. McElrath, Manager in the banking firm of Brown
Brothers Harriman & Co., was presented with a silver tray follow¬

due

of

search.

to

put

1959

company's business—to that
extent we give this sort of re¬

in

available to
are

notes

Best Evaluation Technique

confine

me

to what is thought of

funds

vestment

whole to

a

solidated

ex¬

ample trends in salary scales and

as

of

vasion"

pany,

the

obligation to Ameri¬

an

industry and to the Nation's

case

best approaches to
company's techno¬
logical research is to be so well

Evaluating Research
what

also have

economy

One

pay a lot of attention to
is
called
research — but

factors

can
entrust for a relatively
long period of years the precious

we

can

It may be of some
to learn that a top flight

evaluating
We

mention

problem — is to pick
successful people in whose hands

Prize winner.

concept that of

investment.

to

numerous

a

And it does focus attention

return

too
The

can

to

as

products field by the petroleum
companies. Is a company whose
It has the virtue of being a products today are primarily or¬
dispassionate approach. It is rea¬ ganic in nature doing what it
sonably simple and direct. It is should research-wise to develop
comprehensive, in the sense of tomorrow's products in areas dif¬
involving relationships between ficult to encroach on by the peP & L items and balance sheet trpleum companies?
on

others
here.

give us informa¬ funds which represent security
company's research to our policyholders.
It can be of great comfort
Not only must we do a success¬
to know that a company whose ful job
ourselves in evaluating
products are in a rapidly chang¬ investments for the New York
ing area has affiliated with its Life Insurance Company, but we
example it

standing of its problems and the
actions of its management.
-

items.

companies in the chemi¬
industry, but we also like
successful companies in the elec¬
tronics
industry, the water in¬
dustry, the automobile industry,
the public utility industry,
and
cal

concern

ceivable and cash.

is

such

use

of- facts—along
of

listed above do this.

tion

considered

idea

I know that most of

Now, "turnover" is the ratio of
sales to total investment, which staff.
permanent investment and work¬

We

lot of other facts—to

some

exactly- the

Return on investment, accord¬
ing to this analysis?: is the prpdftct
of two ratios: (1) "TyrnoY^"ja»ad
(2) Earnings as a percent of sales.

is

well ask "of what

table?"

a

like

industry, I should
correctly say we like suc¬

Thomas

H.

Proprietor
Byrd

is

now

HERBERT D. SEIBERT
25 Park Place

sole

proprietor of Byrd Brothers, 60
Broad Street, New York City.

REctor 2-9570

CO., INC.
New York 7

Chronicle

The Commercial and Financial

26

(1102)

TO THE

LETTER

NewAccountingConceptSuggested
Foi Depreciation Reserves

Del.

WILMINGTON,

stock.

The
Fund,

;

.

'

•

on

'••'

■'

Raises Query

A

>• v

■

Probably what I have said above is that corporation earnings
per share basis have been overstated by not giving credit

'
;

.

Investment Department '

.

CLARENCE H. HAINES

••

...

"

v

.

.

advanced by New England
Harvard Trust Company/ ;,!'
correspondent to overcome the inadequacy of depreciation
Cambridge, Mass.
v. Av•' V ./
AA;. - '
reserves and impracticality of projecting replacement deprecia- .
February 17, 1959. *
:
>>■
tion costs. Mr. Haines would give full recognition to deprecia>
A
-1-*-ff 7'
h-"- '
tion reserves as part of total capitalization by crediting and
^
l Continued-from-.patie 6". "kti J? ''■■■'■ ,1
allocating to it all of its earnings rather than continuing the
practice of siphoning off the reserve's earnings into earned f %
surplus. He provides examples showing how this plus straight X
line depreciation could take care of most of any replacement /;"
cost.
In short, he queries the customary earnings to shareratio for "not giving credit where credit is due."
A

accounting principle is

new

-r

a

where credit is due!

—

Chemical

of

stockholders

i

72% of the adjusted

earnings which is respectable for a consumer

Stockholders Approve
2-for-l Stock Split

'!

Thursday, March 5, 1959

share earnings by 8.3%

per

common

.

.

paid would still average

the dividends

but

To Chem. Fund Board
;

decreased the

have

would

EDITOR:

Two New Dirs. Elected

.

...

"

.

.

re-elected

Inc.

Fund's

directors

of

board

of

members

12

and

"V;'A:!'

■■

AA

.1 -V

-5

-

Renlacino Om ExDort Policy
,

,

.

.

With U. S. Investments in Europe

Editor, Commercial and Financial Chronicle:
INADEQUACY OF DEPRECIATION RESERVES to meet re¬
placement costs is getting much ..publicity currently. The principle
of depreciation is to charge to income the original cost during the
Dr. Roger F.

elected

vacancies
was

directors to fill

new

the fund's board, it

on

announced following the an¬

nual

meeting.

members

are

The
Leroy

F.

board
Marek,

of

Arthur

new

Vice-President

senior
D.

Leroy F. Marek

Murray

two

Little, Inc., and Dr. Roger F.

Murray, Professor of Banking and
Finance at the Columbia Univer¬

sity Graduate School of Business.
At the annual meeting, Chem¬
ical Fund stockholders also ap¬

proved a 2-for-l split of the fund's
capital stock. To effect the split,
the stockholders approved an in¬
crease in authorized capital stock
15,000,000 shares of 50 cents
value to 30,000,000 shares of

from
par

Stock certifi¬

25 cents par

value.
cates, representing

one

additional

share for each share held, will be
mailed

on

April

15,

1959

to

all

stockholders of record March 26,

useful lifetime of

1959,
over

and

machinery

more

more

are

Suggests New Accounting
In my
of my

Concept

opinion utilizing what is to the best

knowledge

NEW CONCEPT IN AC¬

a

H.

Haines

for

Reserve

Depreciation more nearly
replacement costs in periods other than those of drastic price
changes. My theory is that there is one factor in the total capitali¬
zation of a corporation which is earning its way and not recognized
or given credit for what it is doing.
The components of the total
capitalization of a corporation are:
cover

(1) Debt which pays interest to the holders of the obligations;
(2) Preferred stock which pays dividends to the owners;
(3) Common stock which pays dividends plus the advantage
of the increased

'

equity from retained earnings;

(4) RESERVE

FOR DEPRECIATION which gets nothing.
is charged off earnings retained in the business
capital* The earnings pn the Reserve for Depreciation

This
as

Common Market, found in 1957
with the purpose of eliminating
people, was
custom and other trade barriers lor the Belgain economy and com- between the members, permit free pensated for the pinch Belgium movement of labor, capital and •
felt with declining steel and zinc services, develop common agrieul- 4
exports. Belgium without fanfare tural and transport policies, estabremained a focal point for Ameri- lish
a
European Investment ::
can investors.
Besides giants such Bank,
and coordinate develop- >
as
E. I. duPont deNemours and ment of overseas territories. The ,
the Union Carbide Corporation, a
abolition of custom barriers will
number of other American compabe gradual and completed in 12 ...
nies have erected branch plants years. At the same time all quotas
in Belgium.
and other trade barriers will be a ,

reserve

do not

common stockholders except in liqui¬
Therefore, if the earnings on this reserve were
deducted from Earned Surplus (the same as preferred and
common
dividends) and transferred to the Reserve for
Depreciation I think our accounting for depreciation
would be more adequate and proper.

belong to the

dation.

than 40 million
naturally a rich plum

by more

and ecoaspect. Balance sheets of
62
Swiss
banks
totaled by the
Swiss National Bank at the "end

thing of the past.
-As, a
5 4Pra^^?] u
I
members of the ECM have
^uce1dn,p,us iT1 tanffs among theip
hy 10 %, effective Jan. 1,
959,

of 1958 amounted to

raising

Switzerland

Now I would like to show how this
us

that at the

assume

paid $12,000 for

1949,

a

corporation

truck to be depreciated straight line

a

at 12V2% a year.

years

might work out in practice.

By the customary method

on

the Reserve for Depreciation of this truck would be

eight

over

Dec. 31, 1957,

$12,000,

on

In this hypothetical case I

more.

at the

francs

the export

capitalization and earnings of

on

earned

on

v

European Common Market
Free Trade Zone

and the

as

known

Any

effort

of economic conWestern Europe would

survey

in

incomplete
without
an
to discuss the importance

of the European

Common Market

implications

its

and

(ECM)
our

for

American economy.

The

Organization

O.E.E.C.,

of

(Net

income

+

on

all debt)

capital & earned
surplus
+
the Reserve

com.,

for

Depreciation)

The annual results would be
% Earned

him
fine

...

$ Earnings on
Reserve for

Charge

Depreciation

Depreciation

he knows he's in

1950_

$1,500

1951___.

shape! What he doesn't

follows-

Depreciation

Reserve for

Health checkup? Not for

as

Truck Annual

on

industrial

stimulate

pro¬

—_

6.05%

—

1,500

—

of Truck

$1,500.00

—

$90.75

3,090.75

1952

5.80

1,500

179.26

4,770.01

1953

know is that cancer has a

-

6.85

1,500

326.74

6,596.75

1,500

462.43

8,559.18

"silent" stage... before it

1954

reveals any symptoms.

Doc¬

1955

7.85

1,500

671.90

10,731.08

their chances of

1956

8.00-

1,500

853.48

13,089.56

tors say

1957

curing cancer are so much
better when

they have an

opportunity to detect it "be¬

7.00

'

8.45

In this

,

1,500

1,106.06

15,695.62

particular company this concept of accounting practice

would have taken

care

of

30.6% increase in the replacement cost.

a

Now I would like to show what the overall effect would have

fore it talks."

been

on

this

consumer

industry

company

had the

new

concept of

That's why

it's important

accounting been adopted for the total Reserve for Depreciation. In

for you to

Tiave an an¬

the Dec. 31, 1957 balance sheet the Reserve for Depreciation was

nual checkup, no

mattercb

how well you may

fee\.Y9

AMERICAN CANCER

jfOCIETY




reported at $48.5

million

and

my

suggested adjustments

would

have increased this figure to
$76.1 million or an increase of 57%

which would certainly

take

care

of most any price increase for

replacements in this eight-year period.
the

transfers

from

Earned

Surplus

Daring this

to Reserve for

period

same

Depreciation
I

easier

much

exporter,
to treaty

big unit than with six
different states, each with its own
,
one

import

customers,

export

and

regulations, currency restrictions,
etc. Compared with the U. S. and
the Soviet Union, the economic;

strength and importance of the
be illustrated as fol-

ECM may
lows:

'
ECM

has

USSR

165.8

200.2

222.0

175.5
715.7
20.8
86.0

Population (in million)
Electricity in kwh (1957) in billion
World exports (1957) in billion $_.
Steel, est. 1958 prod, in million tons

209.5

22.6

4.4

65.6

60.0

good bargaining
power,
discrimination against
will remain as.

a

some

American exports

territory of the ECM will be
protected by a custom wall against
imports from outside countries.

duction, raise the standard of liv¬
ing, today second only to the
U. S., and so offer new potentiali¬
ties
for
American
capital
and

the

creasing
West

Accrued Reserve

forDeprec.

side, it is obvious
American business¬

particular the
be

will

it

rials and foodstuffs.

interest paid

the

for

USA

further

TOTAL EARNINGS ON TOTAL CAPITALIZATION

(Notes, bonds, preferred,

fact.

On the credit

products in particular raw mate¬

TOTAL CAPITALIZATION

econ-•

challenges, is a

well as

omy

well

with

Through the creation of a large
unity,
the ECM will

Depreciation

economic inte-

,

man,-in
The

the Reserve for Depre¬

Reserve for

-

—•.

that

A:.

economic
Rate

towards European

in

1958..

*

courageous

the

using the following formula applied to each year:

am

While

.

at the same time import
by 20%. That the ECM,
and important step ;

quotas
a

gration and umty, American
involves
tunities for our

large listed corporation known to

To determine the rate earned

everyone.

ciation I

a

of 1957.

end

business for Swiss ma-

,

chinery remained satisfactory,-the
watch industry registered a de¬
cline.
Export of watches to the
United States fell from 380,000,000
francs in 1957 to 318,000,000 francs

using the actual total

am

36,100,000,000
against 32,900,000,000

francs

other hand the cost of replacement would approximate $16,800 or

40%

usual presents a

nomic

remain

of December,

end

as

solid and sound political

ditions

Provides Examples

Let

fair

international

Bruxelles

.

Clarence

COUNTING PRINCIPLES it is possible to have
the

leu

brllallijif

•

andjSwitzerlind ^Swbd^iv Ndbway^ Ireland K Portu-Belgium and! Holi&d "wer^ at' gdl,"Switzerland; Atiitria, G'reede,.',*
first a little more affected by the Turkey, France, Italy, West Ger-<
American recession than the many, Belgium, Holland and^,
larger
countries
but
recovered Luxembourg. The latter six have/,'
during the second half of 1956. formed
the so-called European
The

efficient

tFiG5j;

I*A;;*,'*/'

Belgium, Holland

visited

constantly being improved
so that the asset being
depreciated probably will not be exactly dupli¬
cated at replacement time and the refinements
would make it cost more even in a period of
price stability.

and made

As of March 3,

the fund was supervising
$200 million in assets for
than 48,000 investors.

providing capital funds at replace¬

reasons:
(1) one does not know
whether we are going to be in an inflationary
period or a deflationary one, hence a projected
replacement cost is ridiculous; (2) plants, tools

The entire cost of

development.

asset thus

corporations would like to

depreciate replacement cost but this is unten¬

panies in many industries which
the fund's management believes
will achieve above average growth
as
a
result of chemical research
and

an

Some

able for two

splitting
the stock will be borne by the
fund's sponsor and not by Chem¬
ical Fund, Inc. The fund previ¬
ously split its stock 2-for-l in
June, 1955.
Chemical Fund, Inc., a mutual
fund founded by F. Eberstadt &
Co. in 1938, diversifies its invest¬
ments over a wide range of com¬
1959.

time.

ment

't.V;*.■;

?■

Debit Factors

Two

two
and

the

debit

side, we found
factors; the
custom policy
the
increasing competition

transport

other

In

goods.

a

nutshell,

the

custom

may be illustrated as fol¬
lows: Suppose you have an article

problem

which at the

same

of machin-,
equipment . and

in

price and qual¬

ity is simultaneously produced in
West Germany and America and

goods which.
exports to the -

manufactured

our

1956

total

$3,077 billion amounted tof
million or 28.3%y, Immedi¬

ECM of

particularly in the field of manu-, $873
factured

more

producers in the field

'

ery,

On

important is the in*A
competition
between
European
and
American1;

But

ately after World War II, Ameri-*
can
industry had the advantage"
of

the

offering

capital,"

and manage¬
could not produce.-

equipment

rial experience
In

articles which,
industries, lacking;

many

European

overcoming lower wage

com-,

where at the petition, traditionally, American
by let us say industry could meet this challenge
30% ad valorem. Now, the Italian, because of the
greater .capital in-,
import duty on the German prod¬
vestment,
its
superior
plant,
uct
will
gradually be reduced
equipment and particularly man¬
until complete abolishment while
agerial methods. Today, we have
the duty on the American product
lost this superiority.
There is not
will remain unchanged. Negotia¬
a
single article we can produce;
tions
between
the
ECM
and
that. the Europeans cannot while
exported

border

it

America
have

take

not

to

Italy

is

taxed

about

yet

a

custom

started

and

tariff

will

European
Vantage

industry
of

has

the

lower- wages,

ad-,:

more

probably
five years. Al¬ familiarity with local taste, mar¬
though thanks to the. passing of
the Reciprocal Trade Agreements keting and advertising conditions.Act of 1958, the Administration Today, Europeans have the cap-

Volume

189

ital, tools
supplied

Number 5826

and

by

tration and

know-how

.

The Commercial and Financial Chronicle

.

the

largely

.J Capital

us:

.

United

the

concen¬

production char¬

mass

Kingdom

restricts

at

—r

present' imports
from
the
S. A. and Canada to 650 auto¬

U.

acterize European industrial
proggress.
Great industrial combines

all

only supply without difficulty

the needs of internal
consumption
but can

compete against

import

of

American built

prod¬

our

Reporter

and Italy permits the
only a few hundred

sources,

To

cars.

First Cleve. Elects

Y'-;Vf

Our

mobiles per year. France admits
only 12,000 vehicles a year from

not

Governments

on

CLEVELAND, Ohio—The elec¬
of Martin J. Long as Vice-

tion

President and Director and Thomas

overcome

^' -The capital market is making a better showing because there
these handicaps, American-auto¬
foreign markets.
is a let-up in the amount of
corporate bonds that are coming into
European and other countries mobile industry has built gigantic
I the market for sale: Also, the Treasury is expected to confine
are
showing a declining, interest plants in Germany, V France and
its .operations this year to near-term issues
and, if this turns out
for American manufactured
goods.; England and produces ^annually 7 to be true, the market action of the
longer maturities of Govern¬
day when they were sold
through cigar - smoking' agents is

thousands

of

for

European
consumption.
This farseeing pol¬
over.
European countries, how- icy must guide any American in¬
ever, are interested and welcome dustry wishing-to do business on
American
participation in' • their a gigantic scale with Western .Eu¬
industrialization
process.
Some; rope. -7We must change: our tradi¬
countries such

cars

ments

should

be favorable.

A. Caldwell

Assistant Secretary
and Assistant

as

Trea
7

has

are

E.

•.

an¬

A.

by

Legros,

President Of
The

the corporate securities.

First

Cleveland

A' " The near-term issues, which

"

surer

been

nounced

Also, the yield spread between high"

grade corporate bonds and Government bonds has narrowed to a
point which makes the Treasury issues more attractive for in¬
vestment than

i

Long, Caldwell

By JOHN T. CHIPPENDALE, JR.

ucts in

The

27

(1103)

make up the money market, continue to" be in demand in spite of the
larger offering of Treasury
bills. .'The investment of the attrition
money from the last refurtd-

Corporation,
City
Bldg.,

Italy, for exam¬ tional export policy at least in the
special legisla-; field of manufactured goods by 7-'
ing offering created a sharp demand for short-term securities.
tion to encourage American
in-; erecting branch plants or con¬ % In spite of this liquidity
preference, it seems to be the opinion
vestments;
And here lies the fu¬ cluding licensing agreements with
;; of most money market specialists that short-term rates will tend
ture.;
■'.ii.- domestic firms. %t;'
% A to move
up with the passage of time.
•'.(
C Our

National

.ready understands

who heads hiis

ple,

have

as

passed

automobile

industry al-'
difficulty
the impossibility of
export¬

if not

ing American built
•where
Costs

$3,600

the

That

to

Europe
carl which

cars

and

.-Good

-•

Dividend

American

the ECM

Returns

territory

in

i

v

•

The Euro¬
Economic Community, pam¬
phlet compiled by the Banque de

State

pean

and has offset in

Bruxelles):

Earnings of U. S. Companies
In the ECM in 1956v-''T"WV^

"I;'-:.;..
\

V

-

"

r

Belgium

,

•;:yv\

the

V-Y.

Kate of

Return

tax sheltered issues is

Percent

not

few

a

The ECM which

institutions—have
way

53
22 X '

10.8

19

10.4

stock.

12.5

.

and

During

Americans

we

economic

and

inte¬

unification

"over

yet

164

/

already

ECM

and

the

Free

Trade

Zone

the last two months of project may be found.
It would
1958 a
sharp controversy fared be a pity, however, if British in¬
up
which may be called ECM
transigence would destroy that
Free

latter,

Zone.'

The

which

sponsored by Britain,
include, in addition to the

would

six

Trade

members

other 11

of

ECM,1

the

custom

duties

but

outside

the

to
MAKING

Staff

to

—
John A.
has been added to the
McDonald & Company,

of

Building,

bers

York

by

project has been flatly
jected by
France, seconded

west

the

of

New

Germany. The French in¬
dustrialists have reluctantly agreed

barriers"- between

the

members

definitely

six

Stock

are

op¬

Exchanges.

COLUMBUS, Ohio

posed

Hoster

to

E.

to accord similar benefits
Britain, Scandinavia," Austria

and

Switzerland,; fearing

flooded

with

British

Street.

be

to

is

The

goods with¬

affiliated

now

Hutton

&

Co.,

continental

funds

W.

and

Broad

He

was
previously
Company. -•

Ohio

Another

i Behind

BOSTON, Mass.
Goldberg is now

the

British

against the ECM there
First,
fully European
reasons.

is

country.

not

Half

of

trading interests belong to
Commonwealth, 25% to the
U. S. A. and only the remaining
25% to Europe. In addition, there

BOSTON,

of

British

Wheat

with

rope.*

tions

between

members

;'delegate
British

tion of
pean

of

Britain

the

ECM,

and

declared flatly:
would

a

admit

"If

the

'

.

NASHVILLE,

we

arey

forma¬

F.

strong continental Euro¬
able to compete

James

C. Bulleit,

Samuel

economy

A.- Bulleit,

A.

have tried to appease

the British

by extending the 10% custom cut
and the 20% increase of import
-quotas to the remaining members
the

O.E.E.C.

members

of

and

also

GATT

to

the

.

At the

which
among

on

*

includes

them,

37

the

■British, however,

countries

U. S. A.

are

The

not satisfied




same

time, if the Government does not get too obsessed
a

President,

With Cruttenden, Podesta

changes.

the

Baruch

with
"Divi¬

moderator,

Morris
Goldstein, Francis I. du Pont &
Co., and Mrs. Wilma Soss, Presi¬

SAN

FRANCISCO,

Calif.—Ed¬

T. Lindner has become asso¬
with Cruttenden, Podesta
& Co., Russ Building. Mr. Lind¬
ner
was
formerly with Walston
& Co., Inc. and E. F. Hutton &
gar

Street.

Ralph H.

with Commonwealth

30

Crowell, Weedon

LOS ANGELES,

Calif.

—

Fred

W. Dornberger and Alan S. Hackett

have

become

connected

with

Crowell,
Weedon
Co.,
6&0
Spring Street, members Of
the Pacific Coast Stock Exchange.
Mr.
Dornberger was previously
with First California Company.
South

Specialists in
U. S. GOVERNMENT

East

FEDERAL AGENCY

SECURITIES

SAN FRANCISCO, Calif.—Rob¬
ert

L.

Co., Russ Building. Mr. Dowley
formerly with J. Barth & Co.

the

staff of Walter C. Gorey

are

now

was

Payne has

been added to
Co.,

Aubrey G. Lantston

Russ Building.

6c Co.
INCORPORATE©

With Merrill Lynch

Corporation,

2 With

Walter Gorey Adds

with C. J. Devine

Walsh

With Commonwealth Sees.

Securities

»;

(Special to The Financial Chronicle)

FRANCISCO,

from offices at 1211 Station Plaza.

—

guests.

ciated

(Special to The Financial Chronicle)

&

HEWLETT, N. Y.—Jack Freid
is conducting a securities business

now

as

Two With C. J. Devine

Calif.
—
George F. Dowley and Patrick K.

COLUMBUS, Ohio

Shareholders,

Company.

-■

;

SAN

*

Town

of

be

(Special to The Financial Chronicle)

York and Pacific Coast Stock Ex¬

and

Jack Freid Opens

Smith is

will

and does not crowd the bond

better tone in these issues, since the

ter P. Beaver has

(General

Trade and Tariffs)

change

(Special to The Financial Chronicle)

Co., .75

Secretary

a

J. Barth Adds

Now With Ew F. Hutton

CLEVELAND,
E.

Ashmun

with
ner

has

Ohio

—

become

Donald

affiliated

Merrill
&

Lynch, Pierce, FenSmith
Incorporated, 216

Superior Avenue, Northeast.

20 BROAD STREET

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

i

(Special to The Financial Chronicle)

Agreement

Economics

School,

Lewis D. Gilbert, author of
dends
and
Democracy,"

L.

our own
economic systems,
victory at Waterloo would have

The ECM. members

of

for awhile.

Treasurer.

with

lost its sense."

York on Channel 11, Mon¬
day, March 16 from 3 to 4 p.m.
Dr. Jerome B. Cohen* Professor

obligations.

with the desire to extend maturities

Vice-President, and

Love,

that refundings

corporate list should continue to be on the not too sizeable side

cial Securities Inc. is engaging in
a securities business from
offices
in the Sudekum Building. Officers

the

New

inflation

affiliated

&

short-term

conditions, will be taken care of by the sale
obligations. To be sure, there is a desire to extend

FRANCISCO, Calif.—Pe¬
joined the staff
of J. Barth & Co., 404 Montgom¬
Tenn.—Commer¬ ery Street, members of the New
'

••

British

a

Peabody

'

'is true that during recent negotia¬

■of

Kidder.

for

market

Form Commercial Sees.

a

Administra¬

and

Walter

—

become

demand

a

Treasury, since it is expected

SAN

experiment which could
strong continental Eu¬
It .sounds incredible but it

to

Mass.
has

Short-Term Rates

on

create

raising ventures in 1959, unless there is

Federal Street.

mistrust

any

lead

our

Jr.

will

the Treasury.

(Special to The Financial Chronicle)

their

traditional

which

market, there should be

the

a

H.

>With Kidder, Peabody

a

Public

For the present and the foreseeable future,
psychology seems to have pretty well taken longterm Governments out of the refunding and new money plans of

are several

Britain

money

near-term

the

with
Keller
Brothers Securities Co., Inc., Zero
Court Street.

attack

the

be

money

in

distant

Gerald

—

force

maturities of the Government debt, but it does not seem as though
this can be done until there is some kind of appetite for the more

(Special to The Financial Chronicle)

the ECM

will

new

of

with

With Keller Brothers

nations.

Britain and

and

tion of the College of the City'Of

(Special to The Financial Chronicle)

out

having the guarantee that the
British would offer compensating
advantages to offset the "sacri¬
fices" > made
by
the
European

Business

TV

dent of the Federation of Women

Treasury to Exert Presure

with

East

50

accommodations up.

increase in the borrowing rate for the best credit risks.

an

David H.

—

these

prime rate is considered by certain money market fol¬
upward, while there are
others who believe that the discount rate will be advanced prior

(Special to The Financial Chronicle)

r

ECM
-

but

In

educational

one-hour

lowers to be the first rate to be revised

to

■

f

The

Mid¬

Now With W. E. Hutton

other .trade

increase m" loans.

an

rates for

mem¬

and

West

to abolish custom and

A

.

Union Commerce

re¬

zone*.

This

spectacular will be presented by

addition, the commercial banks are
not to flush with funds, so it would not take very much in the
way of an enlargement in the demand for borrowing to push the

McDonald
staff

"Investments" Subject
Of 1-hr. TV Program
the Bernard M. Baruch School Of

for

CLEVELAND, Ohio

re¬

ration.

^

(Special to The Financial Chronicle)

the right of every member
own tariff for imports

countries

trying

THE

McDonald Adds

to have its

from

namely,

is

the

members of the O.E.E.C.

internal

ECM

January, 1958, having pre¬
been
Supervising
Ac¬
at The Lubrifcol Corpo¬

countant

considerable degree of protection is obtained.

future, possibly before the Treasury announces the terms
of its April operation. It is believed in some quarters that there
will be an increase in not only the prime bank rate but also in
the discount rate prior to the announcement by the Treasury as
to how it will handle its coming financing.
,
It is being pointed out by some
money market specialists that
with business activity still on the rise, the demand for short-term'
funds will increase. Also, since inventories will have to be re¬
plenished and retail trade is improving the way* is being paved

OF EUROPE.

The Free Trade Zone project pro¬
vides
for
gradual
abolition
of
serves

the

achieve,

viously

distant

,

•

versus

has
Se¬

1952.

Mr. Caldwell joined First Cleve¬
land in

term

that a
compromise solution between the

is, how¬
top."

He

Cleveland

market, which is concerned primarily with shortobligations, appears to be in the center of a bit of disagree¬
ment between the monetary experts with certain fractions of the
opinion that present rates will not advance very much if at all.
As against this, there are those money market specialists who
predict that near-term rates will tend to move up in the not

threatened

eventual trade reprisals.
It is still to be
hoped

the

the

Increase in Discount and Prime Rates Possible

11.8

■

elected Assistant

in

President and Director.

to the conclusion that the most effective

The money

have

*

:

was

curity Traders Association, where
as Secretary, Vice-

to

In this way a

He

he has served

hedge against the current uncertainties, namely higher
taxes and the fear of inflation, is by
making commitments in
good quality tax-exempt obligations as well as selected common

come

f

Lon|,

company's

been active in

goes

12.7

Long

Vice-President

the way up. It is evident that
for individuals as well as

on

12.0

1,386

—

Theatre.

the

19

182

step

European

not;

for

204

important

an

gration
ever,

that

demand

51

'

>

ECM

toward

definitely

investors—and

the

424

Netherlands

as

indicate that

150

_____________

welcome

to

J.

Exch.*

trading de¬
partment for corporation securi¬
ties, has been with The First
Cleveland Corporation since 1935,
except for the war period, when
he saw action in the European

the slack which has been created

426

Germany
Italy

'

measure

appears

Earnings

------

Total

is

time

(Million Sji)

V

•.

first

Investment

__________

France

<%:

■V:

some

(Million S)

-

/■

for

Total Direct

Martin

by the slowing down of corporate offerings.
As a matter of fact, the
reception which has been given to the
better names of tax exempt obligations which have been offered

Direct Investments and

V'T
y

Mr.

market is having a respite from operations by the
Treasury, and with the corporate calender of new offerings on the
light side, the entire capital market is also enjoying a minor rest
period. However, the introduction of new securities to the capital
market by the tax-exempt fraternity goes on at a very active pace

divi¬
by the follow¬

'

I Y*

Stock

The money

pay good

Of

the Midwefct

Offerings of Tax-Exempt Bonds Continue Heavy

investments

dends, is illustrated
ing statistic: (source,

here

including Fed¬
taxes, would cost
$8,200 in France, $5,800 in
Italy,
$8,000 in England.
In addition.
eral

members

.

American

an

East 6th

SAN

NEW YORK

FRANCISCO, Calif.—Karl
☆

L. Falconer has become connected

with

E.

F.

Hutton

&

Company,

Street. He was
formerly with Reynolds & Co.
160

Montgomery

CHICAGO

X

☆

☆

BOSTON

26

The Commercial and Financial Chronicle

(1104)

outstanding at the end of 1958.

Bank and Insurance Stocks

Book
Value

—

ness,

This

New York,

1.34
1.42

17%

11%
12%

Company* and
established. Another

1955.

15.86

1.37

0.80

1.65

20%

16

1956—

16.17

1.62

0.87%

1.40

20%

16%

1957—

16.80

1.74

0.92%

1.65

20%

17%

Trust Company of Buffalo,

1958—

17.36

1.75

1.00

1.00

24%

18%

1

NOTE—Preferred

by

•

410

the

end

of

excluded from capital funds.

1958

bad

debt

and

other

valuation

reserves

However, additions to surplus have consistently

being moderate.

exceeded the dividend pay-out.
The

shares

selling at present on the New York Stock
a yield of 4%. The pay-out is about
In 1958 the rate of earnings on
book value (excluding reserves) was about 10%; and the stock
is now selling at about 14.3 times 1958 operating earnings.
In company with most banks, Marine Midland reported sub¬
stantial securities profits for 1958, theirs being approximately
$6,000,000
The stock affords the investor an opportunity to participate
in a large number of banks, indirectly, as the geographical diversi¬
57%

York State, and today the largest

Marine Trust Com¬

borrowers.

of 1958 operating earnings.

fication

so

covers

much

of

New

York

State.

Operations

are

conducted in eight of the state's nine banking districts.

deposits.

organization of the corporation, holding

time of the

studying

now

a

A crisis in
gains for their members
and management is under equally England or in France is serious
strong compulsion to try to avoid enough, but a crisis in the United
strikes and to maintain profits. States could be fatal to the entire
Businessmen
and
labor
leaders Free World.
\This is a risk we
are therefore simply doing what simply cannot afford to take.
So, with panaceas and crash
comes naturally and both groups
insist that they must continue to programs ruled out, we are con¬
fronted
with
the
do so.
necessity of
As a result, most proposals for fighting a long continuing war
doing anything about the wage- against a very powerful adver¬
It is a war that must be
price spiral are regarded either sary.
by labor or by business as threats waged simultaneously on many
It is high time
to its rights. Each group deplores different fronts.
inflation hut opposes any sugges¬ we gave more thought to what our
tion that might restrict its own war plans should be and to the
freedom of action.
strategy and tactics we should
This opposition is so powerful employ.

.

in the Federal Reserve System and

and they have membership
the

Federal

Deposit

There

Corporation.

Insurance

about

are

S3,000 shareholders of the corporation's common stock, and 2,900
holders of its preferred.
Statement of Condition
—

December 31, 1958

—-

CONSOLIDATED

—

LIABILITIES

ASSETS

Deposits

Cash & due from banks

$417,410,410

securities.,

528,071,027
142,690,052
34,400,555

Dividend

Loans & discounts

840,188,360

Otbcr

Mortgages

201,975,750

Notes

U.

Gov't

S.

etate

&

Other

securs...

mun.

bonds

&

securs.

—

Liab.

$2,037,688,754
2,271,700

;—

payable

——

acceptances....!—

on

int.,

Provision,

taxes,
liabilities

13,725,801
37,207,203
5,835,487

etc.

payable

9,000,000

Lank premises & equip.

19,443,331

Minority int. in affil

Cust'ms'

12,473,256

Preferred

liab.

on accep..

interest

Accru.

8,156,589

Other (assets, def. chgs.

*43,722,397

Surplus

$100,005,876

108,936,079

$2,'270,245,081

$2,270,245,081
*Less

that it is

treasury stock, $416,048.

A break-down of the above assets follows:

Cash

18.3%

Mortgages

TJ. S. Gov't obligations._
Other
securities

23.3

Loans

37.1

Bank premises &
equipment
Other assets

-

7.8

11.5%

0.9
1.1

Approximately 78% of the above total of United States Gov¬
ernment bonds mature within five

in from five to

21%

years.

years

10 years, with

(maturity dates)

and

only about 1% beyond 10

In 1958 the average maturity was lengthened

moderately

to three years and six months from two. years and eleven months.
Marine Midland for the greater part

being outside the New

York metropolitan area, derives a generally better average return
©n

the group's

©verage

loan accommodation.

rate in

1958

was

Excluding call loans, this

5.86%, compared with 5.66%

a

year

earlier.

Gross

income

came

from

these

sources:

Interest

on

loans,

65.8%: interest and dividends from securities, 18.4%; other, 15.8%.
The last item includes trust fees and commissions.
Marine

1955,

was

Midland's

stock

isues,

dating

from

early

used in part to invest in additional capital stock of owned

units, in part to
purposes.

preferred

pay

What

Of the 500,000 shares originally issued, 148,136

TRUST COMPANY

Laird, Bissell & Meeds
Members New York Stock Ezehsnge
Members American Stock Ezchsnfs

Amalgamating National Bank of India Ltd,
and Grindlays Bank Ltd.

should be

ernment.

/

Head Office:
26

BISHOPSGATE, LONDON, E.C.2

13 ST. JAMES'S

SQUARE, S.W.1

54 PARLIAMENT STREET, S.W.1
Shipping and Travel Depts.: 9 Tufton St., S.W.1
Dept.: 54 Parliament Street, S.W.1

Insurance

Bankers to the Government in: ADEN, kenya,
UGANDA, ZANZIBAR A SOMALILAND PROTECTORATE

Branches in:

Telephone: BArclay 7-8500
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.'
Specialists in Bank Stocks

INDIA, PAKISTAN, CEYLON, BURMA. KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,




to

inflationary wage
policies without putting

discourage

either labor or management in a

strait

jacket.

should

be

These possibilities!
carefully
explored

forthwith.

,,

is

There

also

need

to

s

(

'.

clarify

what is already known about in¬

flation.

We suffer from

our

pro¬

pensity for disputation. Too many
of us prefer to propound our own
pet theories or to demolish some-,
one else's, than to seek out areas
of common agreement.
Wide areas of substantial agree¬
ment

actually do exist among in¬
observers with respect to
many
aspects
of the
inflation
problem, but these areas have
been obscured by controversy and
not been clearly defined!
result, people have the im-!

have

As

a

pression that little is really known
about the subject.
Many teachers
in schools and colleges, not know¬
ing what to teach about it, teach
nothing at all.
There is need,

therefore, to build a common fund
of knowledge on this problem and
to
add
to
it
systematically as
as we can.

research has as yet been
how people can be helped
to develop intelligent attitudes on
economic issues.
What are the

obtain

on

key facts and concepts they need!
most?

There has been much talk

about

education

for

citizenship

but not much study as to just how
this can actually be accomplished
in

the

vital

realm

of

economic

education.

These,-then, are some of the
things that require study in the
battle against inflation.
The Need for Education

In this

democracy of ours, we
expect to achieve; sound;
public policies unless they have
widespread understanding
and
support.
There is urgent need,
therefore, to build a better under¬
standing of the inflation problem
among all segments of the popu¬
cannot

our

general ap¬
|»

The

There

Need for

are

still

Study

some

were

180 BROADWAY, NEW YORK 5, N. 1
Bell

even

proach to this problem?

London Branches;

Bulletin

to

and price

of the budget compete with Ser¬
:
important geant Bilko?
First, it is clearly not going to
And yet the situation is not too
aspects of our inflation problem
be solved by any simple prescrip¬
—especially the wage-price spiral discouraging. Time and again the
tion—such as returning to gold
American
people have demon¬
—on which more information and
NATIONAL AND GRINDLAYS
convertibility or breaking up Big more
strated that when they do have a
insights are needed.
As
business or Big Labor or Big Gov¬
BANK LIMITED
recent understanding of a public
Senator Lyndon Johnson recently

off $4,000,000 in bank loans, and for other

NEW YORK

difficult

ex¬

public consideration of most pro¬ Four Areas Requiring Attention lation.
This should be a matter of con¬
posals for curbing the spiral. To
There are four main areas that
be
sure,
some
unionists
urge require attention if inflation is to cern to teachers and educators
severe
restrictions
on
business be
everywhere.
Your average high
stopped; namely:
school or college graduate today
and some businessmen urge severe
(1) There is need for intensive
has only the haziest notions about
restrictions on unions.
However,
study of the inflation problem—
the causes and the hazards of in¬
at least at the present time, the
of its causes and possible cures.
flation.
There
is
need
for
a
American public is going to buy
(2) There is need to build a
an approach to this problem that
searching reexamination of the
better understanding of the prob¬
is
either strongly anti-labor or
teaching of economics and of its
lem among all groups in the com¬
place in the curricula of all types
strongly anti-business.
munity.
of educational institutions — in¬
It would obviously be in the
(3) There is need to work in¬
best interests of all concerned—
cluding, incidentally, teachers col¬
cessantly to promote actions and
labor and business as well as the
leges.
policies, public and private, that
But we obviously cannot wait
general public — to bring the
will
eventually bring inflation for
these institutions to do this
wage-price spiral to a halt.
As
under control.
job.
Most of today's voters have
yet, however, little progress has
(4) To achieve the foregoing, finished their formal
been made toward this objective.
schooling.
there is need for cooperation and,
Adults constitute the major edu¬
leadership.
cational problem.
A Long War Ahead
In short, we must investigate,
This presents an enormous chal¬
It is apparent that this problem educate and
agitate.
And to do lenge.
Competition for the at¬
of inflation is one
of the most these
things effectively, some de¬ tention of the public has never
difficult with which we have ever
gree of coordination will be re¬ been more intense than it is today.
been confronted. The forces mak¬
quired.
Most
people couldn't care less
ing for inflation are powerfully
Let us consider what we should about the
budgetary procedures
entrenched, whereas the public is be doing in each of these four of
Congress.
Talk about "fiscal
unorganized,
inadequately
in¬ areas.
responsibility" might as well be
formed, and generally apathetic.
in Sanskrit. How can a discussion

$7,400,800

stock—

Common

4,828,545

rec

4,450,140

stock.

Stopped?

these United States,

stantial

possible revision of the banking law.
general banking and trust business,

For

are various things
the Federal Government might do

Little

How Can Inflation Be

Marine Midland units do a

new kind of in¬
must devise new

we

there

ample,

done

but the passage in 1933 of the

ture is

and

methods to cope with it.

rapidly

Continued from page 5

recognized, pro or con;
Glass-Steagall Act gave bank holding
companies official status. In New York State the law now divides
the state into nine areas for the purpose of setting up branches,
©nd Marine Midland is represented in all but one of them. In
1956 a law temporarily putting a freeze on the organization of
new bank holding companies went on the books, and the legisla¬

companies in the banking field were not

combating in¬

confronted today

are

formed

are

Exchange at about 25, giving

At the end of 1958 there were 11 banks

and

At

stock

totaled $48,893,000, an increase from $42,219,000 in 1957, were re¬
ported, approximately $41,000,000 being set up under the Treasury
formula covering bad debt set-asides.
Dividends have been paid in each year since 1929, the rates

the Marine Trust Company of West¬

two-thirds demand and one-third time
At the

13%

9

0.72%

There were over
Deposits (eliminating
deposits) totaled $2,088,000,000, divided roughly into

tntergroup

10%

0.60

communities through 166 offices.

depositors,

1,073,000

13

1.26'

centered in Buffalo, and the

of New York City.

serving 90

11%

1.28

along the same channels
to the possibilities of like geographical expansion.
broadening of the corporation's interests was at the time

units in the organization are

pany

1.18

1.00

15.83

branch banking part

the

largely confined to upper New

ern

9%

0.52 J/2

0.50

16.34

bank officials should be thinking

©nd look

1.07

1.03

1954.

ofices in some of the

up

in

Success

3%

1.05

15.40

1953

organized in 1929,
being the year

was

busier districts of
of the business
brought wider expansion. It was logical in the 1920's that, given
the then current trend toward state-wide and nation-wide busi¬
Buffalo.

6%

1.06

holding company came from the move

Marine Trust to set

Low

8%

15.21

|
the

Iligli

Surplus

$0.84

15.82

Trust Company were

unit, important in the set-up, Marine

of

to

$0.50

We

relatively

a

flation

Price Range

0.60

Marine Midland Corporation

idea

Dividend

,

Per Share

—

Net Addition

1952

dates from 1850.
The

$0.99

of possible ways of

with

1951

components of it date back as far as 1839, that
when Niagara County National Bank & Trust
Northern New York

Common

Thursday, Mareh-5,1959

.

flation.

1950____

Bank Stocks

Marine Midland Corporation

While

Operating
Earning*

$14.63

1949

$50 par stock, dividend

a

Teh-Year Statistical Record
::

By ARTHUR B. WALLACE

This Week

It is

1

$4 annually, cumulative.

...

NORTHERN AND SOUTHERN RHODESIA.

The

causes

of inflation

put it: "We need light in dark
today are too
corners, and we need it soon."
widespread and too deeply rooted
It is really amazing, when you
in our habits of thought and ac¬
stop to think of it, that we Ameri¬
tion and in our economic, political
cans who take such pride in our
in the United States

and

even

our

social institutions.

complicated though it
they can usually be

problem,
may
be,
counted

on

to

arrive

at

sensible

decisions.
reason

This, basically, is the
why inflation is not in¬

expenditures
for
techno¬ evitable in these, United States.
logical research, spend next to
What Do People Need to Know?
nothing for studying this problem
ity program, such as those of inflation that so vitally affects
What kinds of information do
adopted in recent times in some our welfare. We spend more for the
American
people
need
to
other countries. Conditions in this
chewing gun and comic books. know to enable them to avoid
country are not critical enough to Even our basic statistics on such further debasement of their cur¬
make such a program feasible.
things as productivity and labor rency?
vast

Nor would it be realistic to urge
the adoption of a drastic auster¬

On

take
ever

the
the

other hand, we cannot
conditions

chance' that

will become that critical

in

are woefully inadequate.
\
This is a question with many
Particularly urgent is the need ramifications and one on which it
would probably be impossible to

costs

for systematic, open-minded study

Volume

189

Number

5826

.

.

.

The Commercial and Financial Chronicle

(1105)
reach complete accord.

less, there

are

which

on

there

Neverthe-

major points

some

would

wide-

be

spread agreement.
To

begin

could

use

"

with,
bit

a

...

people

some

of

orientation

on

of the elementary economic
life.
Too many assume,

some

facts

of

for

example, that expensive things
can somehow be had for
free, that
we can eat all our cake and
give
it away at the same time, and
that

more

money

prosperity.

It would

people

some

means

to

be

more

news

learn

to

all

that

worldly goods have worldly costs,
that

even
in America, it is impossible to do everything at once,
that public spending is not

and

with

synonymous

economic

growth.

Secondly,

the

newed efforts to strengthen

com-

ciations

have

made

efforts

some

better

a

some

people seem to think but
it could nevertheless yield worth-

matters

their

while results.

come

a

of

immediate

members.

The

°ne

Should

bers of all these

be

urged

to

time

has

for them to embrace broader

high rate of personal savings
would also help to curb inflation.
individuals

to

concern

goals.

The inflation problem is
that vitally affects the memgroups and needs

People need

facts

.more

budget,

about

the

nhmit

tTiiP

facts

about

the

farm price support program, facts
am, facts
about profit margins and relation.

.

.

j

j

i

*

°is

SiriMy"^-

needed,
policy.

eral Reserve

There

can

be

move

has

formation

of

cabinet

a

been

argument

about

the

interest

pensable
tion.

rates

bulwark

Yet

this

is

—

to grips
lem.

with the

Clearly

inflation

probthey do

however

yet add'up to
teroffensive.
They
not

as

mure

hneinocc-

nnnn

remote

"?"•

and,

unreal.

to equate using p ices

lahnr

men

leaders and the

gen-

era! public.

^^b^1ltP°W®leSS t0 d° "^ad,
anyinink aooui 11.

the

infla-

1S

against

fact

«.

major

a

help wilTbe^eededatfrom
who
be
recruited
can

possibility

of

Second,

remote.

would

proach

wild

inflation

such

probably

an

be

ap-

inef-

One

could

in

men

both

number

a

private

and

of

public

Mr. Evans,
President of
Clement A.

I-

Evans

ment to achieve stable economic
growth.
Our society contains vast re-

ernors of the Investment Bankers

are

beginnings

become

no

more

of

massive

a

what

sources of energy and ability that
could be rallied to this cause. The
great need now is to
activate

serves on the

evans

a

clement

Clement a. Evans

Board of Gov-

Association of America,
T

,

•

,

Leonard Langeneckert

these resources, to stimulate indi-

With Goldman

Sack*

VxOiaman, oaens

viduals and groups throughout the

,

country

(Special toTxrsfinancial chronicle)

ioin

tn

j»

for

^l-

the

fiVht

xt

j

_

the

duration

l0' tne,JcluAaUoi}:i.

"bewiteTtepoUtlcal

President

complexion,

Nixon's

Eisenhower

Zse

point to

^V^KiKfl

coun-

& Co.,
Inc-of Atlanta
since 1932,

the

should

Vice-President

everyone

indis-

fundamental

rv

ILVans, Lfirector

move-

than

basic

an

The tlme to

the

commit-

various

efforts

be

achieved to make them effective?
It goes without saving that close

life, members of various economic centralized
control
groups and of both political pareven be attempted

should

not

,

ST. LOUIS, Mo. - Leonard
Langeneckert has become associniorl xxritK
HnlrliYion
ated with

Goldman, Sachs & Co.,

314 North Broadway. Mr. Lange-

neckert

formerly Vice-Presi-

was

aS"°Cldted **
Now

4°

Corporation

tn

were

ms tun

ible

+

pomt:

hegin is now.

groun

One approach would be to try to the cause.
give hi
full support to such °
proposition that during boom pe- to frighten people out of their
^ve
suppoit to such a
riods, it is essential to avoid ex- complacency
by
parading
the
We Have Begun to Figlit
cessive creation of credit. Regard- spectre of runaway inflation. This
Some people, though not many,
The Problem of Coordination
less of its shortcomings, flexible approach
should
be
definitely have been lighting the good fight
How ran sufficient coordination
monetary policy-entailing flex- ruled out on three counts.
First, against inflation for a long time, of
little

S ini

hpSn

headed

Jggjfr most peopleare quite for their direct impact upon the inilatlon Enhstmentsare needed
fJ^ The IU 111x6 pGlllS Ot Infla- cholOEficPlI but also for their psy- not just for the 1959 campaign but
perns 01 mna- ec°n°my
1UG future pertls if lllllcl
chological pffpf»tc upon businesseffects

161X1 •

.

standing

policies and

own

practices. '
Anbther

^
Si,™

,

_

know

respect to their

a

j

by Vice-President Nixon
BATON ROUGE, La. —The
their attention.
This means that to
study the inflation problem and Action of Clement A. Evans, Atwell differ from mine, but I they should now take an active to buiid a better
public underlania investam
personally bothered by the interest in matters outside their standing of it. If its
approach is lHNPHflflHH
ment banker,
ethics involved
in
making this own immediate bailiwicks that not too partisan, this
group should
t° the
board
kind of appeal under existing cir- bave
an
important bearing on be able to make significant contriof directors of
cumstances.
Certainly the best Prjce stability.
butions in both of these directions
General Gas
way
to encourage thrift is by
The leaders of these groups
'Mm
Corporation
working to protect the
future bave unique responsibilities with
Much More Is Needed
has been anvalue of savings dollars, thereby respect to inflation because of the
All these developments are en§
nounced
by
strengthening real incentives to strategic roles they play. Admit- couraging.
They manifest a growHal S. Philsave.
tedly these men are not likely to
ing awareness of the need to come
JM lips, President,

•

Federal

an

should be emulated bv indus
trial and labor organizations with

*

,

f tdone, some of
6 ?! lmport?unae
tha,1
4 mcludes a11

whn

us

for this reason? Your answer

save

.

be better informed.

a

may

the

to

if

Government wHh
reducingthSr LTat&n- n?
Hefe is
?xamnM

public certainly
understanding of
p
be influenced very much by occaperils involved in adopting
The Matter of Motivation
sional exhortations and appeals to
inflation as a way of life.
These
How can people be aroused to
"statesmanship."
Nevertheless,
dangers are not readily visible do these things that need to be with the help of public
opinion,
and
most
poeple do not even done to restore the integrity of we can hope to develop a stronger
know what they are.
Many have the dollar?
sense
of
social
responsibility
a vague feeling that rising prices
In this matter of
motivation, we am°nS 0U1* industrial and labor
are
not seriouply
.harmful and are at considerable disadvantage. leaders* H the American people
beneficial.
Those who work for things that become sumciently aroused about
Thirdly^ since two of the chief jn
aggregate add up to infla+
efe headers may be
sources of inflation are the fmanfjon> are g^ongly motivated by in« V
.
y harder to help
cial
operations
of the
Federal
immediate self-interest. Few, unout some solutions.
Government and the wage-price
fortunately, feel much incentive
Political leaders have equally
spiral, these are clearly two sub- to
e t'hese pressures.
great responsibilities The actions
jects on which the public should
-x
™ey take are important not only
needs

ment is to study the onerations of

petition and to eliminate monop- along this line, but only a few.
the Federal
olistic practices on the part of
Most employer and
employee view to
both business and labor. This ap- organizations have traditionally
ary impact
proach is not the panacea that concentrated their attention upon that

29

PORTLAND,

Oreg.

—

June S.

Jones Co., a corporation, has been
formed with offices in the U. S.

?ank B"nding, as successor to the
^tment business of June S.

Q011Tnn<5 Sr' iSlchfiSt*8'¥
°t«

5

t

S
?r
E.a^ry»

m

implications are not ade- fective.
Third, if it were effecIn" the USA
Vice-Presidents, and Harquately understood by many peo- tive.it would
ties, who have for years been
pie, as evidenced by the repeated cannot take the risk of nurturing helping to stem the inflationary far
Nevertheless unless somo de- ^reasurer*
attacks against the Federal Re- a
fear psychology among the tide.
*
gre'e of coordination can be
serve System in recent years for
With Capital Securities
American public.
Regardless of one's politics, I
worked out the diverse activities
its so-called "tight money" policy.
On the other hand, we can and think most would agree that the
(Special to Tiie Financial Chronicle)
0f mar,y different groups no matThese, then, are some of the should explain to people the seri- Eisenhower
Administration
de- jer ^ow well
CHICAGO, 111.—Donald A.
intentioned,' may rethings
on
which
education
is ous implications of the inflation- serves a good deal of credit on
su^ jn confusion and ineffectual- Smith is now affiliated with Capineeded in our battle against in- ary trend in our economy and ap- this particular score.
Also, special ness
tal Securities Company, 209 South
Ration.
peal to their good sense to bring citation has been earned by the
T,
20vernment sending We La Salle streetinflation to a halt.
We can also Federal Reserve authorities.
its

and

be^ dangermus

The

Need for Action

^TapprtchCiuldnot11^ ve^y Sg*.

We

nnfrf,*™

Within the past few years, more .
t
and more people have started to
J
do things about this inflation p
e
„p
to problem.
Merit badges should be ?lei'J3e

study and education are not
enough; they must be translated

appeal to their sense of fairness
and to their sense of public responsibility.
These appeals are

into effective action.

less

-

But

In

the

political arena, there is
public opinion
actively
to
oppose
inflationary
legislation and to support remeneed

mobilize

to

dramatic

than

an

fear but they are valid and
tainable
and
in
the
long
should be effective.

It

measures.

important

is

even

to nominate

more

elect

and

people's pocketbooks.

the

In

policies, spread support for sound
probably the greatest need is to can be aroused,
bring the weight of public opinion
to bear on the formulation
ausiruu
dustrial

Public

effective

check

on

settlements
practices.
wage

; Avoidance
be

a

major

decisions
and

men

money

number of founda-

and

nc

Teachers

consideration

in

the

by business-

leaders

Rlrpnnv

not

only

but else-

and

educators,

mri

nnuo

fhPir

already indicated, have their

part to play, and

omists.

So

have

so

econ-

reLrTSamf't'^Le"life
v

^

tising program, and to economists
Harold

Moulton, G. L. Bach

pect.
j

nfeenrsA

Coneressional'

infiation, and
These

•

bearing

atnects

some

more are
..

_

so

have

im-

much

is

mitigate
following
with

that

they

could

do

to

inflationary booms by
more
stable
policies

respect

to

inventories

and

plant expansion.
In

addition,

mg

be

redouble

and
their

broad

study

problem.

This

a

organizations: Civic associa- promising

tions,
sional

business
and

concerns, profestrade
associations,

labor

management

labor alike should

best

x

part, action can
obtained through exist-

unions, and political
izations.

organ-

able

to

of

the

study

inflation

is

more

than most and may be

achieve
Even

costly labor practices
road
for

and

—

construction

example.

the rail-

industries,

The times call for

ne^ assaults on these problems.
Similaily, there

is

need for




re-

™^oiy a^ainst in±1ation could be
a

officers and employees regarding the problem of inflation.
own

We

could

and

should

do

much

more.

This applies to all industries. A
few* corporations

and trade

'

As

.

.

a minimum,

amon"

It is possible

some'

that

apparent

tvt?

some

or

later,

desirable

kind

to provide

of

one

asso-

cil

on

comes

now

or

the Coun-

Prices, Productivity and Inin Great Britain.

"group

73

111.—James L. Mills

associated with Carter H.

Harrison &

Co"

209

South

La

Shlllmglaw, Bolger Adds
(special to the financial chronicle)

CHICAGO, 111.—Eleuterio E. Di
Salvo has been added to the staff
of Shillinglaw, Bolger & Co., 120
To
Qoll
Qfvooi
mnmhorci
South La Salle Street, members
of the Midwest Stock Exchange,
^

T

therefore

to

.

XT

.

f

Joins Negley, Jens
it

establish

organization
guidance and co-

(Special to the financial chronicle)

PEORIA, 111.—George F. Meyer
has joined the staff of Negley,
Jens & Rowe, Jefferson Building,

ordination for the efforts of those

members

willing to help.

Exchange,

Such

an

organi-

of

the

Midwest

Stock

zation should have representation

A Task We Cannot Refuse
Stopping inflation clearly adds
to an exceedingly complex and

up

difficult task.
task

a

if

we

we
are

can

Nevertheless, it is
and must perform

to safeguard the future

Several

steps
recently
an- strength and growth of the Amerby President Eisenhow- ican economy.
It. is a task we
er
may prove to be fruitful.
One cannot refuse to undertake.
has been the establishment of the
Some people, of course, will fail
nounced

.

Saulnier committee whose
assign-

R.

connected

SaUe streetj members of the Midwest Stock Exchange,

in-

new

some

Arnold

(Special to The Financial Chronicle)

spect by its political plumage.

be

7n

Street

CHICAGO,

though not

m

may

—

become

therefore, there

those trving to combat

flation

111.

has

With. Carter Harrisort

...

.

commission further removed from

grams, we are not actually doing
very much today to educate our

other

La SaUe

com-

concentrate their effortsimnnrtnnt
on solvnrnhlpm
aeaiSst Sflat?on?ould be

For

they have in Canada,

Glickson

Tlnoi

JlfCgroups were"to

some

add to inflationary pressures. Certain of our industries are notori-

for featherbedding and

' j1/

more

instance, take
our
own political
pressures—perhaps along
banking industry.
Despite the the lines of the Hoover Commisfar-flung banker educational pro- sion, or the Royal Commissions

ous

sud-

worthwhile from all major economic groups.
might be ac-vIts function should be not to diecomplished by setting up a study tate but to facilitate cooperation.

results.

efforts to

step up industrial productivity by methods that do not

See

Sooner

tn

x.

and

caLfinpoint.

plications.

\heweh*l
pnSrnrt^^nd wSnera aVhlmeemCakGranS~rarRrad ^°nly a few days a^° Senator
SSnn
nrine for voluSS qalw peoole
'
ietued Douglas announced the plans of
y ^ low 1^+^rlfftc Also, tbirl
A^rf there
the Joint Economic Committee for
with
unit protits.
For the most
tr

CHICAGO,

g targets

may be ' able to provide others
with
effective
leadership.
The
Nixon committee may manage to
do something in this direction but
sub- it is obviously limited in this re-

times usefui but they can hardlv
be expected to produce maximum

have farm leaders,
objectivity in dealing with a
businessmen, edi- iect s0
fraught with political
And

(Special to The Financial Chronicle)

h'

g

strategic

"

in pros-

operatTonfarl soml.

hn

.should at least be informal liaison

Thpre havP nlcn hpr»n

with

*

.

With Reynolds & Co.

wasteful

port P™gram is a
™s vast ope-end spending

analy-

tical contributions.

union officials,

tois and legislators.

^

Insurance Institute for its adver-

and Arthur Burns for their

Many Must Contribute

ways

their

pf
w

select

we

educational activities,

like

Now, just wno is going to do
wow,
who

should as

for

iteJ1

to

uTchfm

the

Commerce

of

hive deaft

of inflation

labor

ber

of

arrived at

a

tionsi for their research grants,

wlopS

an these things?
The answer is
vari0Us
inflationary that many individuals and groups
that
and
pricing must contribute in
many different

the bargaining table

at

of in-

and pnue policies.
anu
price puiuaes.
indignation could be an
wage
wage

awarded to

by in-

them,C wide!

of private

area

run

All groups

jn the community are hurt

public'offic?fn tlf?firsTplaee. '° ^ght^home

sus-

AanPtl.?

?

dial

appeal

SeCretary"

to do their share.

This

means

that

'

Joins'Harris, Uoham
(Special to The Financial Chronicle)

BOSTON, Mass. — Herbert J.
Myers has become affiliated with

Harris, Upham & Co., 136 Federal
street. He was previously witft
Investors Planning Corporation of
New England,
~

.

t

i

in

tstabrook Adds
(Special to The Financial Chronicle)

BOSTON, Mass. — Edward J.
Russo has been added to the staff
of Estabrook & Co., 15 State St,

-I

^

■

The Commercial and Financial Chronicle..

profoundly impressive; the vast Russian
land is beginning to yield up its wealth; and most Soviet
citizens are proud and loyal, like most citizens, every¬
where.
Nor could I detect that our negative policy
toward the Soviet Union was likely to induce the Soviet
are

collapse which has been periodically foretold from offi¬
cial Washington in recent years, or even contain the ex¬

in

past time so magnificently by the private

is

economic

the agricultural/decline in
intercity areas. :
/ / V
word, the helicopter will
displace the fixed-wing aircraft
for short distance transportation,
ultimately serving all of the areaf
of the 500 mile circle.. In. the',
meantime the jet plane will ex¬

plete

citizen. If it

communism of Nikita
he says, "the Soviet
Union is seeking to insure its military power and security
—and it is doing it. It is seeking to develop its limitless
resources—and it is doing it. It is seeking to spread its
"Dominated by the pragmatic
Khrushchev's school of thought,"

influence far and wide in a world

tend the outer limits for the trans¬

Continued from page

the observation that "this time we

might get licked."
#

not be solid ground for the uneasi¬
ness of Mr. Stevenson and the similar fears of a number
of others that have been investigating the situation. The
trotible with his analysis, and with that of many others
who fear the new-style imperialism of Russia, is that they
seem too much inclined to believe that we should do
a
There may or may

:

*.

1

they perceive, rather than to remove
it. He finds that the primary -weapon of the
"economic power," and bemoans the fact—

crease

alleviate

or

which would in the end greatly in¬

many things
the danger

good

Kremlin is

for fact he evidently finds it—that the Western Alliance
has not "concerted its enormous economic power in a
rnbprent. onimfer-nfferisive."
coherent counter-offensive.

-

the

fatal

insisting that we must
deterioration" in

economic

.

m

must

are

planes

by 1970 some 5,100,000 pounds.; port, experience with helicopter
f.nnrcp
will
Consist
of
air freight carriage has been more
freieht carriage has been more
This, of course, will consist of
If we
look
across
the
packages with high unit limited.
seas we find The Fairey Aviation
value.

an

toe' /

even. now

*

average person envisages. Accord¬

ing ,;to

J. B.

Edwards, ' in

the

Journal of the Air Transport Divi¬

sion

;

Wing
ratioIT arr'subVtaTidally greaSh; ^i a
has

ha

than for ±. fixed-wing flight, it is a
-i*
J
ai
A

of/-the/American Society, of
Civil Engineers,' December;/1957,
the.neW jet DC-6 may be loaded1
'to a maximum ^weight/of -21,000
■pounds • with

twin-engine operation.
It
/high
range
of 400 miles a net

local

-

densities<|as

20 pounds per cu. ft. And'
this figure
by no means is, trie
ultimate;'' ////-• " ■"/'•''// /-/;-/*////'<-

m*■

as

makes claim to • being the most
a'
important transport •"aeroplane"
'.'•■'>!•
downward trends"! In-October Q^ hli'the i world. At any- rate it hir'
:v/;> Lower Cost of Handling
last year, a report to the Council
dicates successful freight and pas-/ / There are persons ,whd believe
from another"source bore out' Mr/ senger operation. ^
the costs of air transport will con¬
Aldrich's caution.
In " this well >. ' With these and other' experr- tinue to be
higher than those via
documented paper by Counsel/'for ences before us there can hardly
other
media.
Quoting
Edwards'
the organization it is stated that
be any doubt that it is a matter pgain, he. points/out lhat- iri. the
the impending use of the-turbine 'phly of
and not a long last 20 years,; "passenger. fares
i.

—

,

_

fallacy to conclude that future
reductions "will reflect but mhitpi

■S*'/

'/s* 1 /"

C

..

■

f'V,

'•*'*

-j*

»■

•"

•

.♦

t

'

vv.c

■

<

;„

.

f,V^eVw^en
1Ct?pJe!j or
•Y1e1ld1°1
yp?.
5?"todyne,
sengers by as much as one-half.
wld be functioning profitably as
Obviously it is jint- too much-:tO/a significant part of our trans-;,
ftvnpptYprhuUimv in- Pmt system.
One helicopter-comexpec^fm^i*>rtertt xedw
tlu'
heli.

engine in the helicopter will re-;
duce the cost of

?

tinent

ators.

transporting

^

^

in use op this
120 commercial

are

by
The helicopter

pas-

c

-

con

craft in remote areas ill comDeticompeti
tion with other forms of trans-

operates^

foreign .epuhtries.

52

business is

Its

total

caleplaterf annually in

have been reduced from 6 cents to
less than 3 cents per

St^^ass

-gjMj

important.. But

^

fa„ing ,Q

^vMei4

mos?
dis-

over

even.

also / been
if the. -ab¬

solute charge for. . a_ piece. , of.
freight is higher by air tban by rail, motor f truck,: or; water, the
correct basis for making epmpari-"
must be formulated

the

of

increased commercial

mile at equal
Reductions
in'

value."

dollar

freight: .charges, have

sons

states, including Alaska mfr ^
the District of Columbia'* and in'

overall

costs

in,terms

of particular

transactions. Less packing, if any
packing at all required, lesser inbecause

ventories

of

/quicker

deliveries, and in many instances

mitesrffc^

the complete elimination of ware./houses /as; distribution points to
distant centers, all together may
expresS'rose 17.4%ao 40,W)0
ton^; / >If an the various' forecasts ef result /in a /lower .cost of handling
al
dropp®d
the;.increasing use• 'of • the heli- by
air-freight
than
by. other
36.4%
to.. 5,000
ton-miles.s The copter come to pass/- and there media/ • ;-v>'7 ,v.. "" V'"'•/-/<'/'
latter*, decline more than likely seems little doubt they will in
In
an
investigations made.- at
300

Germany, and the other eastern European satellites, and

is growing at

can carry

a plane can carry
far exceeds the amount which the

Gp. Ltd* of England meeting .wiiif

and

with'the conditions which exist in neighboring West Ger¬

virtu-*

becomes

tonnage which

TMc

-lane

strange

seem

miles

amazing pace • and'

small

sure

with the state of

in

ally of nqiihppHahcief. Incidentaby,/
the size of pay load which freight

future of this phase of air trans-

about 2,400,000 pounds and

N. J.,

'

distance

r

ChAff UK IA VI Ml Tf All Slid!ttflftlllll
K VI MUll IlldiaillrC A I01I»JIVI ACKllVII

"47

parts of the world and "provide an alternative to
communism as a technique of change and growth in the
poor,, underdeveloped lands." This he is sure, ,as so many

few. hours rather

a

With

days.

speeds ranging'"
•/ from 300; to' 600" iftiles pef hour,' *

.

many

others

terms of

than

copters

Mr. Stevenson is not alone in

somehow-"arrest

passenger'

or.

the ends of the earth" and do

"to

where chaos and misery

economic difficulties, and where Western democracy is in many places,
alas, now on the retreat. And it is doing that, too!" After
reviewing the situation at some length he comes up with

of freight

portation

3

abound, where new nations are beset with

"*

a

it in

us.

'

.

In

progress

the Soviet

system, the twice defeated candidate for the Presidency
evidently does not feel quite sure that we shall not be
defeated in the contest that the Kremlin is forcing upon

esti-,'

an

The heli¬

many

pansion of Soviet influence."

Although finding definite weaknesses in

in 1955 and

copter which may make "country/,
living more convenient may com-,

and prowess that is required, the
best mode of procedure is to move away from the
of system that exists in Russia, not toward it.

very
kind

acres

mated 1.4 acres in 1975.

betray grave misgivings about the free enterprise system,/
and a tendency to suppose that in "ihodern" times govern-;
ment must be the mainspring of much that has been done /

It

As We See
achievements

only 2.2

rightly with what a great many others evidently have
in their minds. In doing so he seems, as do the others, to

Continued from first page

'

;

,

Thursday, March 5, 1959

.

.

(1106)

30

Population

the Kremlin is master of intrigue, and
will be reversed ^a§ the.rmanufac- this era of inventive
making the worse appear the better reason,
genius, the Harvard
University; * interesting
and its ability to make trouble everywhere is not to be^turing industries pick up again„as effects upon the economy of New
data are presented which support
evidenced by the fact that in 1957
York City and the centers roundthe theory offered here.1 In addi-^
under-rated, but major assistance to all the backward
a
countries and their teeming hundreds of millions through¬
^ai'oc;«
was reSistered about may well be beyond pres- Hon, this study points out the
over 1956.
ent imagination. New York merr
willingness
of
businessmen - to
out the world—at the same time that they are improving
Chicago
Airways- Helicopter, chants may profit, at. the expense
"pay a premium rate for • trans¬
their own position in the world—would be a feat that
Inc. reports a notable decline in
of the business men in the smaller
portation
where
for - example"
many.

Of

.

course,

is skilled in

;

•

would
into

the progress

cause

already made in Russia to pale

insignificance.

about

the ultimate

capacity of free enterprise to
achievements, actual and projected, of com¬
munism.
These questions,,; we must say, fall strangely
from the lips of a
leading citizen of a country that has,
with its free enterprise system,
grown to be the envy of

match the

the world.
"Can

He asks:

American

our

with the central

system prevail in competition

planning, control and direction of the

Soviet system?
"Can

we

and natural

mobilize, organize and utilize our human
as
effectively as they can?
do so without imposing controls that im¬
freedom and values we in the United States

resources

"Can we
peril the very
are
trying to preserve?
,

❖

"In

❖

shooting war our system seems to perform more
effectively than a dictatorship—or, at least, so the evi¬
a

dence of World Wars I and II
suggests.
was
subordinated to the demands of

government
decisions
nrnt»Qt

protest.

.

was

of

service.

operating

It

has

its

fallen

passenger

from

$2.20

hand,

the

population,of New York City

may

(cities.

On

the

other

seat mile at its inception in decline because people will find
1956 to 32 cents today. The com-/it possible to live 25, 50, or even

per

But Mr. Stevenson goes much further than to warn
of such dangers as these. He raises fundamental ques¬
tions

cost

Then everything
victory, and the

able to make drastic and uncomfortable

promptly and without fear of serious public

knl in•■<.

f5ut m our present

^7

situation, the government can.
jrarcly act promptly and decisively; often it cannot act
at all, because domestic
political considerations are not
:—
^uiiaiuciciLiuus
arc
iiul
subordmated to the needs of

an

effective foreign policy."

Mr. Stevenson is, as usual, more candid than most
in public life- for
taking active part in the affairs of
their political party. He comes forward
directly and forth-

acknowledges that without 100 miles away without having to
S./ airmail contract ; and spend any more time "getting »to
government subsidy to aid them .work -or to engage* in other busiin their developmental stage they liess, than the local residents, do
pany

the

U.

could not survive.
tion

does

not

But this situa-

differ* from

some

other

now.

pnd/i

/ These

shifts

in /population

business
itself
might
change^ the
tax,' structure, -and
mean: a/ higher 'cost of living in
certain centers or a lower cost.'in
others. The entire intercity ecor
nomic relationship ,?is, likely?,to
change. ', '
\
//'" ,■ ■ ■
".'/'
in

-

reliability are

speed and

a

viewed
trans¬

.They.also point to savings

"carrying

4n

in

benefits"

"extra

as

action.

inventory"

in

and

warehousing under certain condi?
tioiis. Although the authors of th^

publication quoted, warn against
accepting .their
conclusions
as
final, owing to the limited data
available, neyerthele.ss, they feel
a iew generalizations even if only
temporary, are in*order. Among
these, for example, are the follow?
,

.

pioneer efforts, as/for example our- railroads, Whichr required government aid in their
first stages.
The helicopter has
ing statements-"One opportunity
made remarkable progress in the
lies in expanding into now mar«past 20 years, much more rapid
kets through use of air freight
according to authorities than hald '
What applies to the New York
without commiting a company to
the fixed-wing plane over a pe- city area applies equally well to
the
investment; in
bricks vand
riod of nearly 40 years prior to cities throughout; the nation.
Inmortar required for warehousing."
this date. It is expected that the cidentally,
in
addition
to
the
i "There is
great need for a
recently announced gas-turbine? scheduled line at New York, cerpowered- developments,r such as -tificated' lines are also*in operas re-thinking .of the. place .of. trans¬
Sikorsky's . twin-engined - h e 1 ir tton 'at Chicago and Los Angeles, portation in business. The one
'factor of air transportation that
copter planned for 1960 or 1961 The flexibility of helicopter opmakes
this most obvious
is its
which will carry 20 to 25 passen¬
eration and the fact it requires so
"any growth in. the
gers or comparable freight cargo, •little space in which to take off 'speed."
Bell
Helicopter Corporation.— a and- land; makes possible the rise use .of air .freight will have more
subsidiary of Bell Aircraft Cor- -of new settlements: and a continu- far reaching effects, on business
poratioiwwill produce a nine to ,ing - reduction-, of
agricultural practices generally thaii upon the
few companies
engaged in fur10, place helicopter for commer¬
lands.
Our agriculture is already
cial
use
and -Republic-'Aviation being affected by the fixed-wing .nishing air-freight, service;" <
A- case study- of a specific busi¬
Corporation's- already marketed -airplane which is bringing prod//
.

.

,

.

...

machine, may reduce costs to as
little

cents,.or less, for dir
rect passenger mile operation. Inas nine

^ice from ever-greater, distances.
Modern
farm
equipment,
advances

in agricultural science and

dire.ct costs should also be low- -areasleast the expansion ofof city
not
and construction,

ered.

~

ways have steadily reduced, farm

•

The

high-

^

Rotodyne Airplane

producer of electron tubes

ness,: a

in'

-located

Pennsylvania,/ .was
possible, effects

"made to determine
"of

an

intensive

use

of air service

distribution of their
products. After an elaborate pres?

upon

the

^

.

,

-

-

men




While
passenger
veal

these

facts

relative

^ Ohio, alone, there- has

-to

transportation costs re^
prospects for the

excellent

1 The - Role of Air Freight in Physical
Pistributir>n, Division; of Research, Grad¬

V

been a- decline Jrom 519 acres of

uate

farm

Harvard

land

per

capita

in 1900' to

School

of

Business

University,

Administration,

1956.

Volume

189

mentation
eludes

oi

Number

data

.

.

toe author

"If Electro-Lab

changed to the

f

5826

The Commercial and Financial Chronicle

.

as
the regular means of trans^portation in, the replenishment of
inventory at the Chicago and Los
Angeles warehouses and reduced

•

.

one

con-

Company

of air freight

use

inventory levels^ it is estimated
amnnnf tn <57ft QR2 r»pr
would,amount to $78,983 per
year.
This would be equal to
approximately an additional 0:3
'cent per tube profit for receiving

;

'

,

will

enjoy-a

significant

"distributed

.

.

.

i
..

Mullins

p

*

„

nartiler

Pittsburgh

r

Saffron
0

Jr

>

«

Pi

Rural

A

nartner

part

•»

E

Ma

Harrison

phia,

elected

—

,

ties to ponder carefully,

of securities

cmr*»n

Atomic Industry

1958 — Atomic
Industrial Forum, 3 East 54th
Street, New York 22, N. Y.
(paper), $1.25.

dealers* in &the Automation

*■

short-sighted, however. t<r stgiip behaynor ^of management with rethis means Of fransnnvt for fhnse"
onnsniprntinn
fn

•

the

largest
organization

Sbl?J°. 12)5:0 .^vantage'/0.r air or already holds. If he is wise, he
^freight for some Line. It would be will want to keep an eye on the

;

Monetary Fund* Wash¬
ington, D. C., (paper)i

American Society of Tool Engi- Security Dealers of North AmerNo
11
nf fb^
neers Collected Papers for 195$,
lea, 1958 Edition
directory of
National As
Book -II—American Society of
stock and bond houses in United
Herniation of
T°o1 EnSineers, 10700 Puritan,
States and Canada
Standard
& Poor's Corporation, 345 Hud¬
Securities
Detroit 36, Mich., $10.00.
:
rnmmittpp

;

.
.

national

Co-Chairmen

of District
^

y.
which
./"eventually, industries .which in- £!; Thev myjestor of course, is involve the handling of
bulky "goods^ terestei,in fl^ stability and likely
such
as
mineral
ores,
liquids/ growto bfJiiisinesses Whose stocks
1
grains, and the like may npt be: or.^pndS^he intends to purchase,

•

Schedule of Far Values: Interna¬
tional Monetary Fund — Inter¬

have

been

'

■

Association, 1606 New Hamp¬
shire Avenue, N. W., Washing¬
ton 9, D. C.

F

er^^xiarriSOn^oc

is

that most of them will be affected

—

Sen

Robert

Dealers which

■!

Low
Income and
Rural
Development Programs In the
South
National ,\ Planning

F™»/Wir»ir

anri

Frederick PMuinns

o«i,rTw

i

■

The

two

SUCceed Eugene'if Lea/
partner, Reed, Lear & Company,
Pittsburgh, and William H. P.

men

m

J

_x_

T71

ttt

/-n

1

n

BLS
Bureau

of

No.

1241

copy.

—

America, Worcester, Mass.

Labor

issue of Quarterly Journal-—Tin

Research Institute^ Baser Road,

Research—Win-

Greenford, Middlesex^ England
—Copies available- on request
(American office, Tin Research
Institute Inc., 492 West Sixth
Avenue, Columbus lx Qhio]k. ,

1958—quarterly publication
Coal Research,
Inc., 121 Meyran Avenue at
Forbes, Pittsburgh 13, Pa.

wh£it-is'--within'.the

.

Until

the

change, the
districts.
district- comprised the States of
Delaware, Pennsylvania, and a
tically none-.of the elements whichchas^made for the long pull Part °* New Jersey,, and was
have
been critical
up
to
the ueetoto7be tinder constant review, known as District No. 12. It now
" .present day will be of hConcpKi. particularly; with reference to the consists
of Delaware, Pennsylj^iThose planning to engage in in- imminent influence of air-freight yania^West Virginia and a part of
New Jersey as
production
or
t h o s-e ;■service
District No. 11.
a

.

;

.

,

"*

'*

'

*

*:.V already manufacturing but givin
.

^/consideration

]■

be

asking

"Where

; ; .

to

expansion

but

can.

-

we

willY

question:
the - best airv.

one

get

freight ter. ice'-

..

!

.

,

v
,

Joins Westheimer

Yates, Heitner

;

5; (Special to The

Financial

Chronicle)

,

;

(special to the financial chronicle)

^ LOt'IS

.

Mo -Charles

H

Bituminous

Business

-500*n»l^^rC|ig;-Mijn^%11n. the light of the facts

matter of-ufearness%f(^dht^d tereV then investing in
;r to raw materials or to markets, or ' such1* an * organization should be
if even :fo^;labor or capital, ^ac- on fetflCtly short run basis. Pur-

It will not be

Investment

Analysis

(on

request).
Tint, and Its Uses—.Winter 1958

ter

-

Street, Dept. A860-1411,
14, N. Y., $14.00 per

Story of the Busy Dollars: A
Child's Guide to Life Insurance
in the Family — State Mutual
Life
Assurance
Company of

Statistics, U.
S.
Department of Labor, 341
Ninth Avenue, New York 1, N.
Y., 15c.

—

—

New York

and Employment OpBulletin

.

son

portunities for Office Workers

-

country.

Bituminous Coal

t

pi

Connecticut Ave., N.W.* Wash¬
ington 6, D. C.—on request

EI6GIS UTTICBlS
PTTT^mmrm

ban expansion, residential inva
sion of the, distant countryside and
possible shifting . of .retail and
wholeseale centers of , trade. If

tubes for the replacement market .cities mo longer will be able to
through these, ware- argue .Jthe
advantages of their
houses. In addition, potential- sav- respeqtyve locations, the magne't
ings j in warehouse
expense v of .to, attract industries and popula$108,888 per year might be pos- fipJi will have disappeared and
fsible."
;
"
*
many, of4their eurrent. plans for

;

NJICI| Jliclriltl IIA 11
llHvli UIOlNGI HQi I I

-

planeexnansion. residential suburand helicopter upon
ban
inva-

"that wniiT<t
that
.

,

locational advantage over anyone
else. To all intents and purposes
most industries will be equally
advantageously located.
;
Not unimportant, too, will be
the ..repercussions— of both
the.

(1107)

—

Transvaal and Orange Free State

Machinery
and Allied Products Institute,
1200 Eighteenth Street, N. W.,
Washington 6, D. C. (paper),

Chamber of Mines, 68th Annual

George Terborgh

50c.

—

•

■

;.v:

;

California

Report

Fruit

Statistics
and
(Bulletin 763)
University of California, Agri¬
cultural Publications, 22 Giannini Hall, Berkeley 4, Calif.
Related

Data

Commercial

CINCINNATI, | Ohio — Annette
Mandelsohn has: joind the staff

England

of Westheimer and Company, 322

Banking
1784 - 1958

In

New

Pearl

Federal

—

for

Transvaal

,

the

and

year

195T

Orang^

—-

Free

State Chamber of Mines/ Johan¬
nesburg, Union of South Africa,

United

States Latin American
Relations—Report to the Presi¬
dent

Dr.

—

hower

Milton; §.

Eisen¬

Superintendent., of
Documents, U. S* Government
Printing Office, Washington 25
D. C;, (paper)* 3Qc,
—•

Wages and Industrial Relations:
Union Constitution; Provisions
(Election and Tenure of Na¬
Industry Location
Walnut Street, members of the
tional and International Union
As
air freight
efficiency de- ^r?wn
New York and Cincinnati Stock Employing College Students. A
Officers); BLBBulletin No. 1239,
*
? velops; the location of an Ihdiistry Ne^ 3^^ and Mldwest st°ck Exchanges.
Guide for-Bank- Managemeht •—
30ci Occupational Wage Sur¬
'"""will be far less consequential than .Exchanges.
Committee
on
Executive De¬
veys—Baltimore* Md. and Buf¬
; '-'today.~For theii, no m'attef 'where
velopment, The American
With Ball, Burge
falo, N. Y.—BLS Bulletin Nos.
located, if a producer has air.
Bankers
Association, 12 East
(Special to The Financial Chronicle)
1240-2 & 3, 25c each; Earnings
freight sen;ice to all parts of the
v
-J 36th Street, New York 16, N. Y.,
and Employment of Seamen on
CLEVELAND, Qhio—Steven M.
v; nation and overseas, as well, he is
' - -.(Special to the financial-chronicle)
(paper), $1.00.
Kostrub is now connected with
U. S. Flagships — BLS Bulletin
"J likely to be only three to six ' LINCOLN, Neb.—Duane D.
No. 1238, 60c-^-U. S. Department
Ball, Burge & Kraus, Union Com- Glossary of Plastics Terms—Phil;
hours away from sources of sup- Worley has become connected with
lips Chemical Company, Barmerce
of Labor, Bureau of Labor Sta¬
Building, members of the
ties ville, Okla.
"ivpiy and principal domestic mar- E. E. Henkle Investment Com- New York and Midwest Stock
tistics, 341 Ninth Avenue, New
How to Select a New Electrical
York 1, N. Y.
kets.
In these circumstances no pany, Federal Securities Building. Exchanges.
Appliance — Buyer's guide for what's the Answer? A brief
guide
prospective purchasers of ma¬
to Sources of Business Statistics
jor appliances — Kelyinator Di¬
Committee on Business Sta¬
vision, American Motors Cor¬
tistics, Department of Manufac-;
poration,
Detroit
32,
Mich,
ture, Chamber of Commerce of
(paper).
the
United
States,
1615
H
International
Cultural
Relations
Street, N. W., Washington 6,
of the United States
Policies
D. C., 50c (two or more
copies^
and Programs 1955-1958—U. S.
35c each).
.

Reserve

of

Bank

Boston,

'

Decreased

Importance- of-^

1

'§^P.rw«

r

-

Street, ' Boston,'
(paper), on request.

fbi
Buildmg, members of the

-

-

~

t

30

Mass.

'

■

.

JoinS .E, E. Henkle

.

_

—

—

Department^of^State, WashingLabor

-

Relations

Management

Clarence

—

E.

Bonnett^-Exposition
Press,
Inc., 386 Fourth
Avenue, New York 16, N. Y.,
$10.
Mankind's Children: The

Story of

UNICEF—Robert L. Heilbroner
Affairs

—Public

Pamphlets, 22

East 38th Street, New York
N. Y.

National

—

Economic
2

Economic

Institute

National
view

16,

(paper), 25c.

Dean

Re-

Institute

of

Social Research,

and

Trench

Smith

Street,

Square, London, S. W. 1, Eng¬
land
(published
every
two
months), $6.00 per year ($10.50
per year, shipped air freight).
Objective Examination of Resid¬
ual Hearing of Deaf Children—
E. N. Sokolov and N. P. Paramonova—A translation of Rus.

,

sian

research

hearing

in

Institute

Beltone

.

.

for

—

Hearing

Research. 2900 West 36th Street,

Chicago, 111. (paper).
Postwar

Air

*

'

i.:-

panies

Freight Distances in Terms of Time, Compared

'

^

V

With the 500 Mile Circle

Assuming
of
1?

this mode of
hour

tances
.

a

<

n.

tp

move

speed of only 300 miles per hour for air freight planes, the tremendous advantage
transportation over other forms becomes apparent. The 500 mile circle with its
obviously may be viewed as obsolete as compared with the great dis¬

"overnight ride"

covered by planes in the same
5M mules in

lit this diagram

advantage over any

time. As a matter of faet, rail freight does

12 hours.

it is easy to see that, the differential in air time gives no
other so far- as location is concerned.




,

not ordinarily
.

.

..

eity an outstanding

of

Relations

National Planning
Association, 1606 New Hamp¬
shire Avenue, N. W., Washing¬
ton 9, D. C., (paper), $LQQ.
—

Who

Buys the Houses; A report
the Characteristics^ of Single
Family Home Buyers*-—Miles L.

.on

Colean and Leon T,

Kendall-

United States Savings and. Loan

League, 221 North La Salle
Street, Chicago 1, 111. (paper)
World Trade Data Yearbook—In-

ternational

Trade Review* 253
Broadway, New York 7, N. Y„
$1.00.

Three With A. G. Edward*
(Special to The Financial Chronicle)

ST.

LOUIS, Mo. —Robert C.
Bauer, James F. Smithy and, Joseph P. Tzinberg have become associated with

Sons>

409

members

A.

North
of

the

Midwest Stock

G.

Edwards

Eighth
New

&

Street

York and

Exchanges.

Mortgage

Saul

—

National

'

'1

Rise

wheat Surpluses and Their Im
pact on Canada-United States

B.

Bureau

Com¬
Klaman —

of

Research, 261 Madison Avenue,
New York 16, N. Y. (paper),
;■

_

_

,

.

--

L M. oimon Add*

Economic

(special to the financial chrqnjcle)

ST. LOUIS, Mo.—James J Taxman

has been added to the staff

Productive Nature of Wholesaling of I. M. Simon & Co., 315 North
—How It Creates Value in Serv- Fourth Street, members of the

ing the Needs and Convenience New York and Midwest Stock Exof the Public
National Asso- changes.
Mr. Taxman waa foi>
—

ciation

of

Wholesalers,

1001 merly with Edward D. Jones & Co.

The Commercial and Financial Chronicle

82

.

Thursday, March 5, 1959

.

.

(1108)

detail here,

Wellington Co. Adds Three

Public

run

Moyer Kulp, Vice-President and
Company
affiliates, 1630 Locust Street, has announced three additions

through a process of multiple ex¬
pansion based on fractional cash
reserves; However, the
deposits

Chairman of The Investment Committee of Wellington
and

Outlook Continues Favorable for

and share-accounts of thrift insti¬

tutions,

Utility Earnings in 1959
outlook for utility
continues
generally

The earnings

companies

showing.
On the other hand it
unlikely that hydro condi¬
be

crease

for

the

of 7.5%

for the 12 months

Allowing lor a

ended November.

possible increase of 2 or 3% in
the number of shares outstanding
(There are no figures available
en this) the figures would seem to
indicate a net gain of about 5%
in earnings per share.
The electric utilities were fa¬

have

the

been

most

earnings

Pipeline

were

not

by

weather since their entire annual

output is usually sold under con¬

than

1957.

As

a

3%

with

compared
total

result

only

4%,

expenses

and

net op¬
erating revenues were up 7.8%.
"While interest on long-term debt

jumped nearly 17%, due in part
to higher money rates, this in¬
creased burden was largely offset
by the higher construction credits
mentioned above.
come

deductions

Hence total in¬

increased

only

6.1% and net income was up 7.5%.
Dividends paid on common stocks

5.3%

larger in amount, re¬
flecting both the greater number

were

©f shares and

numerous

dividend

uals

Robert

I.

Ronald

Cummin

F.

H. Kenmore

Robert

Harper

a

Kulp and will
be a member of the Investment Committee. Currently president
of the New York Forecasters Club, Mr. Cummin's extensive invest¬
ment experience includes responsibilities as corporate investment
manager, investment firm partner, research department executive
and director of several corporations.
Ronald F. Harper has served in the financial department of
a major oil company, and as a security analyst for an investment
company.
Mr. Harper will serve the Wellington Company as

increases.
The outlook for electric utilities

in 1959 should be for similar and

probably larger gains. This
borne out by management
casts for

a

number of

seems

fore¬

companies.

Certainly in the first half (and
probably also in the second) the
utilities
will
enjoy
increasing
rather than declining industrial
©ales.

©how

Residential
even

sales

better




vulnerable

in

the

event

of

sharp decline in the general

any
mar¬

ket, but the rank and file of util¬
ity stocks seem likely to show
greater
their

resistance

investment

ticipated

good

because

calibre

and

of
an¬

earnings for 1959.

Michael Fieldman Opens

should

gains than last
since housing starts are
good and sales of appliances are
expected to make a much better
year,

"growth utilities" selling at high
multiples of earnings may now be

as

an

BRONX, N. Y.—Michael Fieldis
conducting a securities

when infla¬
strong and

are

is

Reserve

pursuing

policy of credit restraint, thrift

sively for savings in order to lend
individuals

some

shift

induced

are

to

from

commercial./ bank
checking accounts to savings/ ac¬
counts and shares, life insurance
policies, and other, so-called "near
monies". By / this process, thrift
institutions
mercial

editor of "Astronautics" magazine and served

security analyst for

Federal

at high interest rates. As a result,

He

Kenmore will also serve as security analyst.

Robert H.

has been financial

when

and

bank

the

.

other

lenders:

their

increase

investment firm.

non-com¬

are

able to

lending at a time
Federal - Reserve';;: is

.

,

actively seeking;to restrain credit

Continued

,V/.-x

expansion.

from page 11

To express

somewhat

Where Commercial Banks Err

asserted

and

have

been

since

1951.

Like

the

debt

bad

tax-free

allowed is only the

reserve

difference be¬

surplus, undivided profits
and reserves previously accumu¬
lated and 12% of deposits. Insti¬

tween

which

tutions

have

previously

accumulated surplus and reserves

frustrated

allowed

no

place the net earnings in a reserve
the absorption of losses from
loans.
No earnings may be re¬

for

savings bank distributes
all of its earnings to the savers, in
whose hands they are taxed as in¬
unless

terest

a

received, it must either (a)

pay

the

Federal

by

increase in. the
resulting from
institutions to
work the idle
individuals.

an

ability of thrift
mobilize and put to
money balances of
To
remedy , the

banks and savings and loan asso¬

situation re¬
this theoretical analysis,
the
argument proposes
that a
specific
policy of
restraint
towards
thrift / institutions / be
adopted. It maintains that cash
reserve* requirements
similar to
those now applied-to commercial
banks, should be imposed on mu¬
tual savings banks, savings and
loan associations,
life insurance
companies, and other credit in¬
stitutions, and that/ these cash
reserve
requirements -should be

not

variable at the discretion of some

for

tained

than

other

purposes

meeting losses on mortgages and
other loans except after payment

vealed by

.

irrespective
of
the
percentage of surplus
reserves
held by the bank.

of

taxes,

amount
and

or

Even funds

the

placed in the loss re¬

taxable to the bank at

are

serves

full

regular

corporate

rates

if they are

distributed or removed
that protective classification.

from

The

mutual

reason

ciations

have

savings

paid much in
taxes in recent years, therefore, is

.

new

net in¬

there has been little

that

left after the above author¬

proposed Federal agency/ ;

Clearly, 'these
trols

would

ized deductions.

most

of

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

to

come

taxes

mutual thrift institutions

on

be

would

short-sighted, indeed.
question needs to be
studied J. carefully
within
the
framework of broad proposals for
tax reform designed to remove in¬
whole

The

and improve incentives.
In this respect, President Eisen¬
hower spoke of the timing and
equities

needed

of

nature

tax

in

reforms

his recent State of the Union mes¬

we

can

time

in

when

look forward to

future

foreseeable

the

needed

reforms

tax

be

can

am

the

Secretary of the
Treasury to prepare appropriate
proposals
for
revising,
at
the
proper time, our tax structure, to
remove inequities and to enhance
incentives

all

for

Americans

to

and to invest. Such

save,

as i

recommendations will be made
soon

These

mits.

brightened
do

fiscal

our

as

not

condition per¬

will

prospects

if

the

be

expenditures

1960

exceed

levels

recom¬

mended."

is

obstruct

the

thrift

institutions

operation

of

tary policy and if so, is
need to

trols

mone¬

there

impose new financial

on

these

institutions.

a

con¬

The

man

theoretical framework

this

question

fractional/cash reserves must be
regulated
nomic

is

too

for' the

benefit.

underlying
complex

to

.

general

j

eco¬

has r also I been

It

widely accepted, until the appear¬
of

ance

recent

cussions,

the

power

/

non-commercial
institutions do not

credit-creating

same

do "commercial

as

and hence,

dis¬

theoretical

that

bank financial

banks

not properly sub¬

are

ject to monetary controls. Unlike
tutions

are

loanable

banks, savings insti¬
dependent- for their

funds

the

on

voluntary

savings decisions of individuals. It
is true, of course, that

savings and

loan associations have

a

somewhat

greater leeway than mutual saviiigs banks in that they are able
to

to

rowing

a

limited

from

Bank

function

in¬

their savings

supplement

flow

Loan

(

whether

have

us

the- legitimate

commercial

accomplished. In this hope, I

requesting

a

proposed con¬
far beyond what

go

always thought
sphere of
monetary policy,: It has long been
recognized' that the unique power
possessed
by'-the
commercial
banking system to expand the
means of payment on the basis of
be

possess

by saying:

"...

The third question raised lately,
mainly by academic theoreticians,

additions. Thus,

while

succeed in limiting

the

deduction for statutory

bad debt reserve

terms,

turnover of money

Monetary policy considerations.

12%

doctrine in
it is

new

the; supply of money, .its action is

of deposits are

aggregating

that
may

iAO-A

/

this

different

Reserve

Attacking Savings Banks

the regular corporate income
tax up to 52% on the portion re¬
business from offices at 1275 Grant tained, or
(b) if it has surplus
Avenue.
and reserves of less than
12%,

„

"near

institutions compete more aggres¬

security analyst.

work, to

Texas, Arizona and
growth spots. Some of the

so-called

periods

during

on,

Robert I. Cummin will serve as Assistant to Mr.

kinds benefited stocks of utilities

Florida,

these

for

the

Harper, and Robert H. Kenmore.

sage

other

the

preference of individ¬

tionary pressures

management staff: Robert I. Cummin, Ronald F.

to the investment

other
taxpayers,
savings banks
dividend, while General Tel. has
gained market popularity by its and savings and loan associations
merger
with Sylvania, effective are permitted to deduct business
March 5.
Further gains in share expenses and interest. They are
earnings are anticipated for both allowed to deduct additions to bad
debt reserves until reserves, to¬
companies in 1959.
Utility stocks demonstrated in gether with previously accumu¬
1958 that they were not necessar¬ lated surplus and undivided prof¬
ily tied marketwise to the trend its, aggregate 12% of deposits.
of money rates, and the market
It is misleading, furthermore, to
craze
for
growth stocks of all refer to a "12% bad debt reserve";
in

new

money" assets over commercial
bank checking accounts, and thus
help undermine monetary policy.
For example, the theory goes

.

Increased

the

crease

„,

more

Further¬

activities of thrift institutions in¬

In

phone has benefited by the pend¬
ing split and increase in cash

commercial

for

advocates of this
theory
continue,

financial

(although in¬
tegrated systems like Columbia
Gas also distribute gas). But the
distributor group did exception¬
especially in Florida), by rela¬ ally well in 1958 due not only to considerations in mind. The need
further
progress
in converting
tively plentiful water for hydro
for adequate reserves and capital
gas,
generation, by a heavy construc¬ househeating customers to
funds to margin future growth of
but also to the extremely
cold
tion program which resulted in
thrift accounts is no less now than
Weather during much of the heat¬
©ubstantial
"interest credits
on
it Was when the mutual thrift in¬
ing season in early 1958. While
construction," by the increasing
stitutions were made subject to
©mounts of deferred taxes which here again final results for the
the Federal income tax for the
in some cases were allowed to year are not yet at hand, it looks
first time.
flow through to earnings, etc.
On as though the average gain in
Liberalization of the tax provi¬
have been
the other hand the air-condition¬ share earnings may
around 20 % or better, aided by sions governing commercial banks
ing load was probably disappoint¬
rate increases. It should be noted, may be desirable.
However, pu¬
ing (figures are not available)
nitive tax
measures,
applied to
end plentiful
rainfall in Texas however, that these results have
mutual thrift institutions
would
©nd elsewhere meant smaller sales not been weighted for company
of power for irrigation pumping. size, and the exceptionally large weaken these institutions and add
gains for some smaller companies to the inflationary dangers in the
Turning again to the FPC fig¬
such as Portland Gas Light may economy. There would be a gen¬
ures
for the
12 months ended
have unduly affected the aver¬ eral loss of confidence on the part
November,
we
find
that
the
age. In any event these companies of depositors and shareholders in
number of customers increased
probably showed twice
their the strength of all thrift institu¬
2.0% and kwh sales about the
usual gain in share earnings, and
tions, including commercial banks.
came percentage. While industrial
this was reflected in appreciation
©ales were down nearly 3% due
Moreover, a fundamental mis¬
of about 38% in the average price
to the recession1 in the first half
conception in this whole tax ques¬
of
10
gas
distribution common
©f 1958, residential sales gained
tion is that mutual savings banks
stocks on Feb. 20 compared with
ever 8% and commercial 6%. Due
and savings and loan associations
a
year earlier, while the average
to
higher
rates
for
industrial
pay little or no Federal
income
price of 24 electric power com¬
©ervice (resulting from protective
taxes because of some so-called
mon
stocks showed only a 25%
rate
provisions
plus
rate
in¬
"tax
preference". Proposals for
gain.
(Moody Averages')./ ■
;
creases)
industrial revenues
change, therefore, are often illLeading telephone stocks have
gained nearly 1% and total rev¬
advised because the real circum¬
enjoyed a "market play" in re¬
enues nearly 5%
Plentiful hydro,
stances are not understood. The
cent months due to special devel¬
plus
some
"softness"
in
coal
opments as well as somewhat bet¬ plain facts are that these mutual
prices and reductions in coal
thrift institutions are subject to
ter
earnings — American Tele¬
freight rates, cut fuel expenses
the regular corporate income tax

such factors as
cold weather, in the south (a good
deal of electric heating was used
where facilities were
available,
vored last year by

tract to distributors

the

more,

cold

affected

especially

substitutes

bank checking accounts.

prosperous

utility group.
Moreover, some
earnings were under a cloud until
the Memphis decision by the Su¬
preme Court.

the policy re¬

as

regarded by many individuals

as

as

calendar year
1959.
Electric
utility
earnings the
In
were
not too much affected by may average less this year.
share
earnings should
the industrial setback in the first general
half of 1958, except for a few in¬ show an average gain of between
5 and
10%, we estimate.
Com¬
dividual companies such as < De¬
troit Edison, whose earnings drop panies which have enjoyed rate
increases recently, such as Tampa
of 16% (for the 12 months ended
Electric and San Diego G. & E.,
Jan. 31) reflected continuing un¬
should show even larger increases.
employment in the area. While
The outlook for gas companies
final returns are not yet in for
is
not
as
clear-cut.
Pipe lines
a few companies, the electric util¬
and integrated gas systems made
ities appear to have shown
an
an irregular showing in 1958, with
average gain of about 5% in share
earnings for 1958 vs. 1957.
This a number of companies reporting
lower net, while a few such as
would compare with an average
Arkansas - Louisiana
Gas
and
rate of gain of about 7% in the
Oklahoma Natural Gas reported
previous five years.
The average in¬
These figures appear to be con¬ large increases.
firmed by the FPC monthly bul¬ crease in share earnings seems to
be about 4%. This was less than
letin
on
"Sales, Revenues and
Income"
for
November,
which half the rate of gain shown in
earlier years—taking the postwar
©howed. a gain in net income for
that month of 12.3%, and an in¬ period as a whole, the pipelines
favorable

are

favorable, and
interest credit on construction
will

well

as

of life insurance companies,

serves

seems

tions

banking system

is admittedly unique in its ability
to
create
check-book
money

PHILADELPHIA, Pa.—A.

By OWEN ELY

to

seems

'

The commercial

To Investment Staff

Utility Securities

but in brief

follows:'

as

extent by bor¬

the

Federal

of all

Home

basic

The

System.
thrift

institutions,

however, is to collect savings and
lend

or

finance

needs
and

of

that

the

of

savings

these

long-term

business,

governments

mentally

new

invest

home
—

a

to

capital
owners

funda¬

different function from
commercial

banks.

The

doctrine obscures rather than

Volume

189

Number 5826

.

.

The Commercial and Financial Chronicle

.

3£

(1109)

jected

Continued from page 2

The Security I Like Best

other products of

printing
:

couunercial

tne

industry were built by
Equipment and sup-

this division.

plies

for

offset

lithography,

the
growing major

newest and fastest

printing process, account for approximately half of the corporation's

annual

sales.

Last

year

Harris-Seybold introduced a completely new two-color press in

'

the
popular
25x38"
sheet
size
which due to excellent consumers

acceptance
I sales

to

has

the

resulted

in

huge

trade.

'

fThe

Intertype

gaged

in

Division

is

en-

the

manufacture, sale,
leasing and servicing of typesetting machines, matrices, parts and
) accessories. It is

one

of the world's

leading producers in
Among its customers
paper

publishers,

field,

the
are

news-

commercial

printers, typographers and other
graphic
share

arts

of

consists

setting

firms.

this
of

years

setter,

the

largest
business

traditional

machines.

recent

The

division's

the

the

type-

However,
in
Intertype Foto-

first

commercially
photographic line-corn-

available

posing machine, has been further
developed, and its use is steadily
growing in the printing and publishing industry.
Improvements
and gains in economical utilization

of

most

this machine, as

widely

methods

used

for

the

one

modern

of

producing type on
has considerably aided its application to lithography,
gravure
and
photoengraving
for
letterpress.
The

photographic film,

Fotosetter
duced

has

with

tachment

also

intro-

been

Teletypesetter

a

for

into

the

traditional

print¬
lines, and with
Harris-Intertype's highly regarded

ing

newspaper

atuse.

Punched

England.

management

greater

Ibaies and service offices

maintained in 14 cities in the
States and in Montreal

are

United

and Toronto, Canada.

cal

ended

year,

For the iis-

June

30, 1958,
about $10,000,-

foreign sales were
000, or 17% of the company's total
business. Further substantial inin

creases

Harris-Intertype's

ternational

equipment

manufacturing

in-

and

marketing activities are anticipate over the coming years,
Modern
research
laboratories
and
product development facilities are maintained both at the

Ohio,

and at
the
major
An experienced staff of

divisions.

engineers

is
constantly
testing
improving newly developed
Engineering and re-

and

machines.

search

expenditures,

amounting

to about $2,800,000, or almost 5%
of fiscal 1958 sales, are expected
at

comparable rate for the fiscal

a

ending June 30, 1959.
Pro-forma sales and earnings of
Harris-Intertype
prior
to
the

year

actual merger in June, 1957, are
calculated by combining the re¬
suits for Harris-Seybold's fiscal

ending June 30 and the
calendar year totals for Intertype
Corporation.
On this basis sales
years

in

its

cation

program,

and

revenues

high

a

fiscal

of

$59,079,000

rently
New

The shares, cur¬
around 36 on the

selling

York

available
mated

Stock

at

only

fiscal

Exchange,
10

are

times

esti-

1959

earnings and
appear
very
reasonably
priced
with good appreciation possibilities over the longer-term.

ended

share

in

1952

to

$4,895,000,

or

$4.15 per share for fiscal 1956,
fell slightly to $4,733,000, or $4.02
per share for fiscal 1957, and de-

tape
from the "typewriter-style keyboard of a Tele-

clined to $2,952,000,

typesetter is used to actuate the

June

share

for

30, 1958.

$2.53

or

fiscal

the

year

per

ended

Last fall business

I

sometimes

Kley Joins
Jones, Kreeger Go.

wonder

why it is
that so many people develop buying habits that follow a pattern.
Possibly it is because most of us
do this all through
a

of

way

life.

coming

to

stick to it.

we

habit

Frank

is

We find

decision

a

The

of

force

strong—even when
to making a decision re-

very

it comes

garding investments.
his

conserve

time

and

his

WASHINGTON, D. C. — Jones, energy.
It is not enough that he
Co., 1625 Eye Street,^suggest attractive investments, at
N. W., members of the New York the
right time to the proper people
Stock Exchange and other principal
exchanges,
announce
the
appointment of Frank Kley as
head of their

—he must also do it in such

to

as

partment.

them to heed his

encourage

suggestions.

municipal bond de- manship.

a way

This

Quite

man

with

Sterling

Trust

1957

Co.

of

President

he

connected

was

National

New

York

head

and

Bank

&

as

its

of

Vice-

bond

department.

and

gets nowhere.

who

ideas

good ones) is the
need

to

I

have

good detail

a

(if

they are
that people

man

help them with their in-

vestments.

with

yet

meet

to

who

man

can

sell.

Twin

City Inv. Women

PAUL, Minn.

ligent and

intelcapable in-

otherwise

vestment

men
who could recite
the SEC rules and the NASD rules

The next backward.
They had the latest
meeting of the Twin City Invest- earning reports on dozens of secument

—

Women's Club will be held

Wednesday,

March

18,

rities at their fingertips, and were

1959, at
Coleman's Restaurant in St. Paul,
Minn. Social hour from 5:30 to

so

6:30 p.m., followed by dinner.
The guest speaker will be Arthur R. Evans, Vice-President and

that they either talked their way
out of sales, or bored most people

busy memorizing, detailing and
trying to impress others with their
fund

vast

of

statistical

material

to the extent that while they were

Fotosetter, thus providing auto- started to improve again and the
Treasurer, Northwest Bancorpo- hammering away with their facts
matic
high-speed production of order backlog has risen in recent ration.
Mr. Evans will discuss and figures the person to whom
newspaper
text \ material.
Re- months.
'Bank Holding Companies."
they were telling their story was
cently a model of the Fotosetter,
' Earnings for six months ended
busy thinking about something
which
can
letter

and

compose

Dec.

31,

^method is expected to be utilized

for

.

.

,

■f

i

automation

-engineering
drafting work by large industrial
and military organizations.
j Until
recently ; Harris - Intertype's acquisitions were confined
to the printing equipment
and
supply field. These included the
purchase in 1953 of both the Cottrell Company of Westerly, R. I.,
manufacturer of high-speed rotary printing and letterpress
equipment, and the Macey Company of Cleveland, Ohio, producer
of collating and gathering machines for automatic assembling
of sheets of paper into sets; and
in 1956, Lithoplate, Inc., of Los
Angeles, Calif., manufacturer and
distributor of presensitized plates
and lithographic chemicals.
j Late

in

1957, the company's
aggressive long-range product di-

nVersification
and

program

assumed

a

dynamic phase
with acquisition of Gates Radio
^Company of Quiney, 111., a 36year-old producer of broadcasting
new

;

of

more

rtransmitters

and

studio

control

equipment for commercial broad-

^casting stations.
investment

This first major

outside

of

the

print<:ing equipment industry provides
♦
the company with a strong nu(ileus for future expansion in the

x

electronics

communications

field

and opens up new avenues toward

accelerated

growth

contributions
understood

to

and

earnings.

that

greater
It is

discussions

for

further acquisitions

are presently
being held with several manufac-

turers

-

'

of

allied

electronics

prod-

ucts;

Harris-Intertype

plants

in

the

which three

operates

United

are

eight

States,

of

located in Cleve-

land, Ohio, one each in Dayton,
Ohio, Los Angeles, Calif., Quincy,
311.,
Brooklyn,
New York
and
Westerly, R. I. In Europe a small
plant is being operated in West
Germany and a large plant in




1958,

on

full-page diagrams of electrical share
circuits, has been developed. This pared

sales of

with

sales

on

net

of

$1.61

were

per

com-

Now With Paine, Webber

$1.15,

(Special to The Financial Chronicle)

$29,102,000,
income

of

$27,180,000

for

the

period a year earlier. Sale
of
the
company's
Milwaukee
plant, completed on Jan. 15, 1959,
same

has

resulted

profit

which

third

ment.

non-recurring

a

estimated

share
the

in

at

will

20

be

cents

E. will

associated

$60,000,000.

La Hue Inc. Adds
ST.

La

of

been added to the staff

Hue

Investment

Company,

Pioneer Endicott Arcade.

in

(Special to Tin-: Financial Chronicle)

$43,377,000

on

000,

with

compared

liabilities.

current

SAN
m

$25

per

share

Capitalization
shares

232

ceded

by

of

that

at

time,

FRANCISCO, Calif.—WalT
a!
T> aLaii4T\
Boysen, Jr. and Robert D.
Daitnam

common

$4,800,000

...

or

on

week-end

will

and

a

better

will

they

responsive to suggestions.
There

are

cer¬

outlook

for

this

internal

increased

foreign activities and
acquisitions of companies in the
graphic arts equipment and elec-

this

etc.,

etc.

information

be-

the

value of

*11

will
you

of

"1-

a

i.-i-

-

'

security, and they
v—

1 1

_

-.1.2

i i1

.

buy into such situations if
confine your calls to this type

investment.

Care

should

be

tronic

so.

communcations

fields.

Application of electronic techniques
is
becoming more important in
the development of new printing
and

typesetting machines.
Thus
further
electronic
"know-how"

with Gruntal
&
Co.,
Street, New York City,

members of the New York
„

.

__

Exchange,

as

With

Shearson, Hammill

hance

the

power,

company's
earning
which could reach $5 or

per

share by 1961.

With this

and dynamic potential inter-

LOS

now

associated with

South Grand Avenue.

merly

with

Jones,

MMler and Merrill

Fenner & Beane.

&
He

Co.,
was

520
for-

Cosgrove

&

Lynch, Pierce,

'

be

to

day

'

something

investors

think

customers

some

ably

hurrying;

some in¬
vestors cannot be criticized if they
like to be called first on "new is-

and

attractive

opportunities.

investment

One day I received

telephone call from a customer
criticizing me because I didn't
phone him regarding a new issuo

a

that
in

advertised in the paper.
our firm was not

was

Quite

frankly,

the

underwriting

THE

selling

or

ADVERTISEMENT

PEARED

that

if

from

that

I

it

me

he

AP-

didn't

wanted

hear

him

t»

that I didn't consider the
offering one that was desirable for
his

I

account.

know

that

I

wanted

wasn't

him, but rather I

him

to

oVferl^pking

was

not calling
was

to his best interest to offer him
the subject bonds.
Much to my
surprise this went over pretty
well

not
but

with

only

him.

for

He

thanked

remembering

mo

him,

also for

telling him I didn't
was
attractive
enough for me to offer it to him,
There is a lot more to salesman~

think

the

issue

ship than you can learn fronts
reading a book, or a column oil
the subject. I've been selling sine®
1925 and I'm still learning some*
thing new every day.

Charles Plohn & Co.
Offers Stock Units
Charles

Plohn & Co., of New
City, are publicly offering
150,000 shares of com¬
mon
stock
(par 10 cents)
and
150,000 common stock warrants*

York
in

units

of

TV

on a

Junior

Publications,

best efforts basis.

consisting
and

one

Each

Inev

unit;

of one share of stock
warrant, is priced afc.

$2.50.
The

stock purchase warrant®.
be exercised during a period!
of two years at $3 per share.
This company, which is located:

may

225
Varick
St., New York*
Y., publishes the TV Junior
magazine, said to be devoted t®
at

N.

Net
are

proceeds

intended

to

of this
be

financing

used

first

to

pay

1

.

_

'+

i»

'

circulation,

The

has outstanding
160,000 commbn shares before the
sale

of

company

the

120,000

units by

the

company.

who

to

take

have

will invari¬

"let me think it over."
Then they will follow my suggestions

anyway.

did

tjme

I discovered they
and

again

and

al-

ways reacted the same way. I now
send them something to read if

a

With Gaston

Roberge

(Special to The Financial Chronicle)

I

want
over.

LEWISTON, Maine—Donald J.
has become connected with.

Roy

Gaston

J.

Roberge

&

Co.,

124

Lisbon Street.

Preston, Moss Adds
(Special to The Financial Chronicle)

BOSTON, Mass.

—

Bernard

C.

Jhe Cdli dna I follow ^^Moss'MRM
next day
Street.

pnone

J.

that they think about my suggestion

(after I have given

reasons

j_nftW

know>

for making it)
Thpv

aiwav<?

run

brief

and let me
do

lhey always do*

tried to obtain a
phone I'd

my

;

know

special.

say,

Wlin.

ANGELES, Calif.—Brown
Hammill

to

posible

(Special to The Financial Chronicle)

Shearson,

en-

I-

Manager of the InDepartment.

vestment Research

A. Thomas is

greatly

Stock

n

f,

has

Certain
a

celerate

and

it

Theodore F. Bullen has become

gained from acquisitions of electronics manufacturers should acgrowth

people will not buy
long-term growth, or run

yield,

Broad

our

that

suppose

These

of the mill investments—for them

Bullen Inv. Manager
For Gruntal & Co.
associated

I

(a) the sum of $60,000 to
repay loans by company officials;
(b) some $15,000 of past-due payables owing chiefly to Promotion
Press; and (c) the balance for
working capital and expansion of

stock-splits,

want

Coast Stock Exchanges.

25

displaying

on your

opportuvanities

and printed for children between
the ages of 4 and 12.

taken to give out information that
is verified and, if not, to label it

product development,

little

security buyers mostly inin capital gains who desire
information
given to them
concernings mergers, possible new
terested

v\

Stewart, Eubanks, Meyerson &
Co., 216 Montgomery Street, mem¬

long-term

leading
manufacturer
of
printing, publishing and broadcasting equipment looks extremely promising,
Major emphasis is being placed

new

a

Fraser have become affiliated with

of

peo¬

bers of the New York and Pacific

The

more

m

1,165,-

stock pre-

consists

debt.

on

"KT

ter N.

call

a

some

cause they feel that they are on a
preferred list, that something unusual might happen to increase

(Special to The Financial Chronicle)

stood at $37.14 and working capital after deducting long-term debt
was

i

Stewart, Eubanks Add

value

are

A telephone call in the

them

more

They

$9,422,000

Book

There

it

products,

G.^ Kinnard & Company, 80

South Eighth Street.

investor who wants

tain

John

of

for

So

still remain in this fast,

the

to decisions

come

special situations.

current

assets

studies

Some investors want to hear of

MINNEAPOLIS, Minn.—Neil C.
Croonquist has joined the staff of

30, 1958, including cash and
government securities of $5,891,-

who

of his customers
business and help

more

category.
evening
suit

Joins John G. Kinnard

nity

list.

space age

subject.

who do not wish to discuss
their investments during business
hours. Some Doctors fall into this

be

strong financial
an(j working capital position with
June

the

ple

PAUL, Minn.—Paul A. Car-

stens has

continuously
since
1941> are presently at an annual
rate of $1.50 per share.
Harrisis

do

after hours.

(Special to The Financial Chronicle)

made

intertype

habits

his customers to

The

in

sales approach-

salesman

buying

Dividend payments, which have
been

The

from

Paine, Webber, Jackson & with the least amount of resistCurtis, 24 Federal Street. He was ance.
Here are a few examples
that come to mind:
formerly with Reynolds & Co.

quarter earnings stateearnings for the fis-

on

William

■—

become

removed

with

Total

$3.50 per share

has

far

per

included

cal year ending June 30, 1959, are
estimated in the neighborhood of

ing

-BOSTON, Mass.
Guarante

;/

Some people want to be

preferred

him because I didn't think it

I have known
many very

To Hear A. R. Evans
ST.

sell

can

salesman

The

think

me

thought. The next time an offering appeared that I thought this
customer might
notice I called
him and told him a DAY BEFORE

who is

Kley has been associated capable of achieving an acceptance
with the firm's New York corre- of his ideas will do a better
job
spondent, Hayden, Stone & Co. in for his clients than the best inits institutional department. From formed
analyst who talks, cajoles
to

let

over,

very

frankly I

much believe that the

habit

of

group, and I never even gave it a

Mr.

1950

tern

sales-

call

we

Water"

to

sues"

The competent investment man
must

Kreeger &

June

30, 1957,
from where they declined to $57,914,000 for the fiscal year ended
June 30, 1958. Combined earnings
rose from $2,511,000, or $2.12 per
year

"Lead the Horses

and

the

for

By JOHN DUTTON

earnings should steadily increase
in future years.

increased from $33,050,000 in 1952

to

Securities Salesman'sCorner

toward

intensified

long-range growth and diversifi¬

company's headquarters in Cleve-

land,

dedicated

efforts

If

I

Camp Adds to Staff
PORTLAND,

Oreg.

—

William

" 1 S. Walker has become affiliated
decision on the with Camp & Co., U. S. National
-

into that same pat-

Bank Building.

~

'

84

The Commercial and Financial Chronicle

(1110)

Business and Credit Trend
sharpest

and

third

its

activity,

Business

recession.

as

reached

peak of $446 billion

a

Think
of it, we were then turning out
goods and services having a mar¬

in the third quarter of 1957.

tion to inventory

explain.
When the economy is
producing more than it can sell
currently, the excess production
must go into inventories, that is
goods are allowed to pile up on
the shelves of manufacturers, dis¬
tributors and retailers. But there

ket value nearing the half trillion
billion

are

so

mind

human

the

Figures like $446
astronomical that

mark.

dollar

difficulty

has

giving them real meaning. It is
perhaps easier to grasp this total
if I tell you that $446 billion in
total output meant a per-capita
production of $2,600, or a perfamily output of $8,300.
In the
fourth quarter of 1957, the decline

bringing about a strong recov¬
ery.
Just as inventories dragged
down total production by nearly
$10 billion only 12 months ago,
they are now a powerful force in
stepping up the tempo of our
econ o m y.
Businessmen have
stopped drawing down their in¬
ventories which means they must

stocks accumulated on the shelves.

These
than

rather

inventories

on

element
for

are

services.

and

the times

cur¬

output to fill their orders.
When that happens, when deliv¬
eries are made out of stocks, pro¬
duction is curtailed much more
rent

to blame.

more
than any other
in the business situation

when businessmen rely

lowed to

goods

been re¬

have

fact inventories

sponsible

current production to
Thus, output has
had to rise merely to supply what
had
formerly been taken from

production is al¬
fall below total sales of
when

times

are

A number of factors were

started.

finger without hesita¬
policies. Let me

the

point

(1) The villain of the recession
inventory
liquidation — was
tamed during the past half year;

—

in

(3) But if I had to pick out the
single most important reason for
the
recession
of 1958, I would

measured by gross national prod¬
uce

balance of our
imports
drifted

over
downward.

$20

a

business recoveries on record.

est

and the

weaken,
exports

postwar

we

billion rise in
G.N.P. in that time, for we have
just been through one of the fast¬
had

have

when the economy recovered from

But

economists.

optimistic

Continued from first page

rely

now

(2) In addition to the ending of
inventory liquidation, government

bring

spending helped

out of

us

,

about

exuberance

future

mediate

optimism

waned

gave

cautious policy
ditures.

I

another

our

and

im¬

amount.

over-

on

also

the fact that

consumers

reduced

less

outlays,

capital

business

for the piling up
manufacturing capacity

excess

was

add

—

spending for housing and exports,
and most
important, the turn¬
about in inventories to a negative

that

reason

of

should

out

factors

three

These

to a more
capital expen¬

way

figure,—accounted

exer¬

the

for

Gross

recession of 1958.

ness

busi¬
na¬

their

cised

prerogative in a free tional
product fell from $446 bil¬
economy to change their prefer¬
lion in the third quarter of 1957 to
ences.
Since early 1956, consum¬
only $429 billion in the second
ers
have been spending propor¬
quarter of 1958—a drop of $17
tionately less on durable goods billion or
4%.
such as. autos, refrigerators, and
The Recovery of 1958
Washing machines. In the third
quarter of 1957, total consumer
We werd fortun'ate indeed that
expenditures
were
$15
billion the recession did not snowball
than

a
year
earlier, yet and present us with an even more
durable goods showed ..serious economic problem.
By
no increase.
Now, such April, 1958, the economy touched
pronounced shift in consumer bottom and
business
conditions

more

spending
virtually
a

on

preferences, if it is not foreseen
far enough in advance by manu¬
facturers is likely to lead them
into providing an excess in pro¬
ductive

facilities

for

began to turn up. I remember in
May of this year speaking to the
New Jersey Society of Certified
Public Accountants and predict¬

durable

$20 billion rate of increase
in G.N.P. by the end of the year.

ing

goods.

(2) Other types of spending too
began

to

out

run

of steam.

for

derision
member

housing began to

new

THE

remember

For

expend¬

example, early in 1958,
itures

I

a

SOURCES

a

club

NEW

in

being tagged

fellow forecaster
the

of

months
OF

too

by

so-called

composed

a

six

of overly

1954

1955

1956

1957

1958

1959

Life

Insurance

Savings &
Mutual

11.4

12.5

13.8

12.2

12.3

13.9

14.8

4.8

5.1

5.2

5.0

4.8

4.9

5.2

3.7

4.3

5.6

4.7

4.8

5.6

1.8

Fire

companies

loan associations

savings
Casualty

&

COMMERCIAL
CORPS.

banks

2.0

2.1

2.0

1.9

2.7

States

loan

FEDERAL

&

(3) Consumers too did much to
trigger off a recovery.
Fortu¬
nately consumers
did
not
lose
their confidence
during the re¬
cession

of

Housing

too strengthened
of recovery by rising
$3 billion between the

forces
than

and

fourth

quarters
of
As interest rates eased

in

early 1958, funds poured in
heavy volume into the mortgage
market

and

FHA

—3.4

—0.3

1.1

4.5

2.0

2.2

2.6

2.8

3.1

2.4

2.4

2.0

2.5

3.0

2.0

2.4

—0.2

0.5

0.8

1.6

1.1

1.1

2.6

1.5

1.7

1.4

0.9

1.3

—1.0

—0.1

0.1

—0.7

2.1

0.5

2.5

10.6

9.2

8.7

2.2

0.5

0.1

—0.5

had

8.6

2.7

single

and

in

7.7

1957

1958

40.0

1959

.

"III

bonds

the

Gross

where

National

we

to

2.9

2.7:

2.9

3.4

0.8

o:6

0.7

0.7

4.2

4.8

7-5

6.5

5.2

ago.

Business

1.0

—0.3

6.4

5.5

1.8

0.7

.

3.5

"

12.0

12.7

20.1

13.9

11.8

14.1

I

10.1

8.2

9.6

12.5

10.8

8.6

9.5

10.5

3.8

1.0

6.4

3.4

2.7

0

3.0

I"

2.1

1.2

—0.3

0.5

0.6

0.6

2.2

1.4

—6.0

—0.7

7.7

5.7

2.2

—0.1

—6.4

—2.9

8.2

5.2

~~Z

GOVERNMENT

*

5.4

I

Governments

5.4

I

__

■

3.3

30.1

*i

4.1

27.1

1.5

0.4

2.2

—0.5

0.5

3.3

3.0

4.4

5.6

5.0

41.0

27.3

30.8

36.1

40.0

But if I
I

would

§50 million.

to

indeed

G.N.P. at $453
tive figure for

say

^

^

be

in

year so that the increase
exDenditures is likelv

the

billion is

the

purchasing power of the 1957
is just about equal to the
reached

of

1957.

terms of

in
The

the third
fact

won't

Scmin

'

.

....

.

,

Additions to inventory are
likely to be moderate.
As
grow, there is of course, a
need for larger inventories
The
need at present is principally at
the
retail
level.
The ratio be(2)

also

sales

is

in

are

+

stock

building, total busiwill

inventories

ness

rise in

But

because ; of

Princinally

crease.

1959 by

probably
While

this:

$470 billion.

net effect of this turnabout in in-

will be to add

to

in

production
pared to 1958.

total national output

a

rise

in

$34/
im-:

is

is

quar¬

that

in

physical output, we have

•

But it carries a •
CAPITAL*

OF CREDIT AND

SOURCES AND USES

year,

one

pressive indeed.

of

segment

exceed-)

ing $470 billion, spurred by a

com-

billion

Housing—that

(3)

$7.5 bil-

1959

add up to?)';

So far as the arithmetic is con^d
cerned, it means that G.N.P. willirise by $34.billion above the level *
of 1958, reaching a total of over /

The

rising by $2.5 billion.

.

What does all this

last

inventory cutting was responsible for depressing output

lion

„

v

hy $16 billion.

about $2.5 billion,

remember

will

„

'The combined eiiect^of
.
these factors \yi11 be to b°ostp_Jj
income in 19o9 b ahout $
billion. Even without resorting 0)j
heavy buying on credit, consunajf
^rs will increase;, their purchases,*

are

retail

the |

of

profits

Corporate

lengthen.

prod-

adequate in most lines so
that total manufacturing inventories will show only a small inucts

half

second

rates will rise, and t
average
work
week
will.',,
Wage

year

l^ely to rise,, jmpr0Ve markedly.

of finished

inventories

We will be able to *
to a normal *

jevei

the

material

raw

»
>

reduce unemployment

lower than at any
past eight years. At
the manufacturing level, stocks oi

but

-

expected

the

absorb

to

productivity.

and

today

time

inventories

retail

-

growth in the labor force, as well
ag
the effects Qf. our increasing

sufficient

sales

tween

statisti^j
us to be

(billions of dollars)
1953-57

actual; 1958-59 estimated

.■•nr.

1955

1956

1957

1958

1959

8.1

16.2

16.4

15.3

12.7

15.2

12.7

20.1

13.9

11.8

10.1

14.1

1953

1954

9.4

i

Demand for Funds

Business/

-——

_

1.2.0

Individuals
U.

S.

5.4

Localities

and

1.4

—3.0

—0.7

7.7.

5.7

4.1

3.3

3.0

4.4

5.6

5.0

30.1

i

2.2

3.3

Government

States

27.1

41.0

27.3

30.8

36.1

-j'i
"•■ti

40.0

-Jf

Si
Total

Demand

—

Supply of Funds
11.4
4.3

pension funds
Govt.; states and localities^

0.4

banks

.

U.

S.

Federal

&

corporate

banks--——

Reserve

Individuals

othersJ__/____'__

and

12.2

12.3

13.9

14.8

5.2

4.5

5.2

12.0

6.0

9.5

10.3

4.8

—1.2

2.3

3.9

7.6

3.0

2.0

2,4

—0.7

2.1

0.5

13.8

12.5

—L.

institutions/

Financial

..

2.4

2.4

2.0

2.5

1.2

—1.0

—0.1

0.1
"

6.0

2.5

io.6

9.2

8.7

2.2

8.7

30.1

27.1

41.0

27.3

30.8

36.1

40.0

I i,
rr

a

dollar

peak

I

and

care

including cars, which began in ^e last half of 1958 will continue..!
Employment
will
increase -by*5
about m miiiion persons-^ rise'*

to

canital

Corps.

misleading.

some

sumer purchases will be large. ^
P1® ^r.e"4 toward, durable ^goOds,;

capacity in the first half of

low

Commercial

all is well

We have studied his actions

optimistic about his spending
Plans this jyear. The rise in con-

i

decep¬
as prices have gone
up, G.N.P. has risen.
Real out¬
put, that is output measured in

ter




were

what win he do in

consumei%

1959?

with

w-. /-i v-t

^

at

2.4

mortgages

the

expansion of plant. Many industries will still be operating be-

on

its former height,

0.8

1.9

credit

ex

occur,

trouble you with ,alljhe
cal evidence which lewds

been

2.9

2.7

I

ex_

amounting to about $2 billion
The emphasis
will be more on
"j
n..n.'n
lore
modernizing equipment and less

today.

Product has

3.8

15.2

2.4

credit

will

increase

modest

through a typical business cycle.
From $446 billion
in the third
quarter of 1957, it dropped to
only $429 billion six months later.
By now, G.N.P. has not only re¬

0.5

12.7

1.9

"Under

stand

2.3

19.3

capital

business

Here I think only a

THE

is

1.2

16.4

1.8

Demand

in

month

4.8

16.2

1.9

Total

(1)

canital

business

First
First,

nt

penditures.

but
$453 billion has even topped
the previous record of 15 months

8.1

-

-

js now getting started in earnest. '
All told, I estimate that State and
local government spending inu
1959 will be some S4 billion:;
higher than a year ago.
Thus>?
G.N.P. will be spurred not only";
by a $3.5 billion rise in Federal'1
Government outlays but a $4 billion increase in State and municir.v
pal spending.
;
(5) And now we come to the
most important element in the '
business picture—that independe¬
enfc and hard-to-predict fellow,;)

months'

The Situation Today

This

Corporate stocks (excl. invest, cos.)

*

the

to

0.5

mortgages
mortgages

agency issue
STATE & LOCAL

fallen

thereafter,
closing months of the
year averaged close to 1.3 million
units—the highest rate since 1955.
every

1.0

8-7

1956

ouir

ahead? Will
we
enjoy
enough
economic
growth to absorb the above-average number of persons Still unemployed?
Will we have sufficient growth to provide jobs for
the
600.000
joining
the
labor
force, as well as for those displaced by the economy's higher
productivity?
Here are my expectations
for
business
during
the
next
12

8.7

1955

efficient

raise

Moreover, in-

the year

What of

ventories

7.5

1954

more

we

low annual rate of

1.8

36.1

1959 than in 1958. I have already/'
referred to the lag m the impact;*
of
government
spending ^proV";
Srams- It will prove as difficult •<
to stop the rise lh government £

works, and public buildings.
The'1
Federal
State highway program"*

will be

30.8

goods and services will unfor^,
tunately show a larger rise 'in#

effi-

Business in the Year Ahead

The rate of housing starts rose

27.3

how

,

outlays as it was to get them un- 1
der Way. I expect Federal spendinS to be up by $3.5 billion,
State and local governments are
straining to keep pace with the
pressing demands of our popula-"*
tion for schools, roads, water-_

915,000 units in
February responded immediately.

41.0

.

productivity is one of
our
most potent weapons against
inflation.
But in the short-run,
the labor displaced by improved
methods of production must be
absorbed by a growing economy,

6.0

27.1

are
of

creasing

7.6

—1.4

9.4

Commercial

S.

is

0.7

1.4

become

we

that

3.9

actual; 1958-59 estimated

BUSINESS

U.

for

12.0

9.2

productive

our

standard of living.

0.8

0.6

we

number

0.9

which

covered

Federal

too that

2.3

1.9

the

ciency by 2-3%. This means we
can produce the same output with
fewer people.
It is a good thing

5.2

3C.1

,___

uses

improve

4.5

5.4

_

can

What's more, nearly every year
we

0.5

1953

Other

increase

to

—1.2

•

we

people by enlarging

unemployed.

5.2

0.9

Demand

Residential

bound

9.5

1.2

_

(residual)

1953-57

Consumer

final

these

who

year

6.0

BANKS

OTHERS

INDIVIDUALS

the

Unless

it.

from

size of the economy,

the

we

people

by $5 billion, this year inventories

(billions of dollars) '

Corporate

When

1958.

figures for last year are pub¬
lished, I expect consumer spend¬
ing to show a full year gain of
$10 billion.
(4)

retire
absorb

after

even

the

of

starts,

THE DEMAND FOR NEW FUNDS

Farm

Will we
the next

more

number

account

6.0

0.5

Supply

1958

this

by
take

1.1

,

Total

have

taught us.
wisely when
recession comes along?
act

of

our

2.7

1.9

others

should

recession

the

is

0.4

0.6

&

flow.

persons

mortgages once
again became attractive. Housing

1.8

funds

agencies

INDIVIDUALS

Foreigners
Individuals

lesson

one

000

10.3

3.0

:

RESERVE

dollars

the

add something like 600,to the labor force—
labor force, expands

year we

4.8

FDS.

localities

and

let

to

temporary tax cut would now
be expiring, thereby lifting some
of the inflationary pressures
in
our
economy.
This is certainly

starts at about 1.2 million units?!
primarily
because
mortgage/',
money will not be
available as"/.
readily in the coming 12 months
as in those just passed.
Housing^*,
expenditures, as you know, are n
the result not only of the number'4!
of dwelling units built during the* *
year but the average unit cost of*/
construction.
With costs rising,up¬
particularly in the second half oDT
this year, I think housing expend^itures will top 1958 by about $IJ%
-billion.
(4) Government Spending. Fed#!
eral
government
purchases bfi?

.

4.3

PENS.

GVT., STATES & LOCAL.

Federal

termined

much to the business revival—has
already reached its peak for 1959.
I expect a leveling in housing^]

from the depth
of
the
recession.
Things are a
great
deal
better
economically
than they were only a half year
ago.
But my point is that this is
not enough.
.•
An important fact to remember about our economy is that we
cannot afford to stand still.
Each

that

Thursday. March 5, 1959

.

..

the economy which contributed so

We have, -it is

progress.

recovered

1.1

__

BANKS

.

S.

______

cos.

CORP.

&

Corporations
Corporate pension
U.

S
,__L_

of

cut

A

this year.

1953

INSTITUTIONS

immediate tax

an

second

actual; 1958-59 estimated

In my
May I recom¬

pressures.

$6 billion to give consumer spend¬
ing a powerful shot in the arm.
Unfortunately, it is impossible
at present to reverse quickly gov¬
ernment
spending commitments,
not only because funds appropri¬
ated during the recent recession
are
only now coming into the
spending stream but because too
many entrenched interests are de¬

more

Sources of Funds
FINANCIAL

mended

the

FUNDS

(billions of dollars)
1953-57

inflationary

talk to the CPAs in

no

true,

on

fill their orders.

(1) Business spending on new
the recession.
As you all know,
plant and equipment was cut back
Federal Government spending has
sharply. During the six months sharply than final sales. Produc¬
been rising in recent months to
ending in early 1958, business ex¬ tion personnel is laid off and the
the
chagrin
of
the!
Treasury
penditures
were
reduced at a unemployment rolls grow. This is which must now find
ways of fi¬
$6 billion annual rate, or 12%. what happened to our economy in
nancing the national deficit. Many
"Why did businessmen suddenly early 1958; this accounted
for of us recommended temporary
'decide they needed fewer new two-thirds of the economic down¬
tax cuts during the period of the
factories, less new machinery, and turn.
Inventories
were
being recession to stimulate business in¬
not as many new office buildings? drawn
down, at a rate approach¬ stead
of
increased
government
I think the answer is simple: They
ing $10 billion in the first quar¬ spending.
The reason is that
had difficulty digesting the spend¬ ter of 1958.
By meeting orders
spending programs take too long
ing splurge of 1955 and 1956. As through the liquidation of inven¬
to become effective and
by the
excess
capacity piled up in such tories, businessmen were depress¬
time
they get into full swing,
industries as steel and paper, some
ing current production by that they are prone to contribute seriof the

made

.

Total

Supply

—

<*i

".if
"This
maturities

table

covers

the

and

redemptions.

/Excluding

net

new

demand

and

iupoly

of

funds,

exclusive

of

trade credit.

/Life

Banks,

Insurance

and

Fire

§Including

...

Companies,

and

FN MA,

*

-

Savings

and

Loan

Associations,

Mutual Savings

Casualty Companies.
VA,

and

excluding trust fund purchases.

other

direct

U.

S.

Government

mortgage

loans;

Volume

189

number ot

Number

5826

.

.

The Commercial

.

implications which

you

will want to consider

laying
It

your

carefully in
plans.

own

that

means

the

as

economy

izations^—will

rise

from

bil¬

$2.2

upward push on rates during the
immediately ahead. Rates

months
are

finding
For

tance.

will

markets.

is

the

others"

vided

of great impor¬
item "individuals

has

in

the

sensitive

a

past

pro¬

to the
existing in the financial

pressures

gauge

When ' this

of

source

during

prices.

appears

While

prices

will remain'

rather
stable
during the early
months of this year, new upwardpressures on prices will be in the
making toward the summer. AsC

the year 1959 draws to
the
economy
once

close and

a

again nears
capacity operations, the threat of
a

outbreak

renewed

inflation

of

will confront each of us.
I am
rather skeptical that we, as a na¬
tion will show the same deter¬

higher -interest
funds

directly

interest

rates

others

and
their

will

bfe

direction

the

Of

tightening in rates
particularly
during

this

give

me

the

and

sources

capital

in

for

upon

outlook

an

for

the

credit

(See

and

tables

of

uses

1959.

fol¬

of

work

lift

major

factors

will

tending to provide

to

interest

with¬

resorting to heavy buying
credit, consumers are likely

increase

their

.purchases

on

to
$16

by
these deyelopments will generate a $34 billion
billion.

All

told,

increase in national

in¬
in¬

of

Even

out

a

be

at

further

rates:

the

The

been
extent

some

recession

the

of

Bond

record

a

than $470 billion.

more

view

the

of

has

already

cerned,
and

plant.
operating

levels
the

in

the

which

at

year,

sec¬

my

interest rates

analysis of the

of

funds

that

me

are

in

some

sources

1959

con¬

further tight¬

financial

creased

sumers,
well

of

con¬

business, and government,

as

the

needs

as

by

a

Federal

Reserve

mortgages will rise by
billon, reflecting not
increased

policy of active restraint.

housing

$1
much

activity

Continued

from

union

will

would

be

(2)

The
be

close

rederal
net

a

to

86

cash

little

billion

in

the

(3) Consumer credit is expected
a rise of $3 billion as the
public steps up its buying of con¬
to show

sumer
j

:

(4)

durables, including
Business

cars.

borrowing

from

the commercial banks will be $2.5
billion higher than it was in 1958.

The

relatively low level of
liquidity at present

Furthermore, it would enable steel
the

point

recession.

Public

(5) Finally, acting in the direc¬
tion of tightness will be the Fed¬
eral Reserve System, mindful of
its
obligation to restrain infla¬
tionary pressures in an economy
nearing full capacity operations. I
think it is

Reserve will continue to

ercise

on

than

Industry
for any

years.

January7': 7.\.7 7 7:7.-'

Highest January Building Permits Recorded
reached

a

the side of tightness rather

risk

being blamed for per¬
mitting excessive price inflation.
As a result, I expect the commer¬
cial banks to be able to expand

building permits for 217 cities in January

the

highest level for any January on record. The total
came
to $488,123,741, for a gain of 8.8% over the
prior peak of
$448,558,401 set in 1955. The current level was up 11.4% over the
$438,331,568 of Januarv 1958 and exceeded the prior month total
of $458,900,150 by 6.4%.
Permits in New York City during January were at the highest
since last August. They amounted to $77,999,456,

level

compared

with

$67,583,851

total

was

in January 1958 for an increase of 15.4%.
23.5% higher than the prior month's $63,175,489.

The

Building permits issued in the 216 outside cities were valued
$410,124,285. This was 10.6% higher than the $370,747,717 of
January a year ,ago and 3.6%.
above the
preceding month's
$395,724,661.
at

Can Makers Seen

ex-

restraining influence
throughout the year, preferring to

err

level

construction

The total value of

safe bet that the Fed¬

a

at the lowest dollar

were

expenditures through the end of Feb¬
ruary 1959, at 82.0 billion, were 16% above a year earlier and at
a
new high for the two-month
period. The gain from 1959 was
stimulated by increased activity on highways and
housing, though
ovcr-the-year advances were scored also by most other types of
public projects.
/%,;7777"

■f

eral

1959

February period in eight

allow

last

"Aluminum

used for
variety of products, and "will be used increasingly for other
products where the metal provides some special advantage."

a

<

:

These

were

the major conclusions drawn in a research

presented by American Can Company at

a

Canners

in

Association

Doctors

L.

P.

annual convention

report

meeting of the National

Chicago,

Gotsch, E. F. Eike and K. W. Brighton, all of

Canco's Barrington, 111
research laboratory, confirmed that "can
manufacturers are anxious to have an alternate for tin plate and

recorded in 1958.

are

operating in the fi¬
will prevent the

ing too extreme:
^

leaving

.

i

(1) First is the growth of funds

no

stone unturned to develop

all of the facts about

aluminum.

market

rise in interest rates from becom¬

"We
on

to

to

Sen.

the

willing to commit increasingly greater research funds

gamble that the price of aluminum will be reduced enough
aluminum cans competitive with tin plate cans," they

said.
research

specialists

aluminum
and

insurance companies, savings and
will

probably

billion

more

sav¬
supply

than

in

1958.
'

(2)

Individual

investors

will

step up the pace of their net newlending and investing activities.
My

analysis
of

of

funds

the

sources

indicates

that

and

will

other

associations, and mutual
$1

•

said

"the

ultimately

processed

key to whether or not
for vegetables, meats, fruits
future price actions of the

be used
items is the

production

that would

and

new

Some
of the

of

these

impending developments—coming

as

a

result

industry's $85 million research program—may help rubber
reach a peak of more than $6 billion this year.
In 1958,

to

Category "individuals and others"

were

mainly

business

and

to

unincorporated

non-profit, organ¬




would

almost

be

7^.;

/

tie

his hands during negotiations," "Iron Age" said.
after everything he can get from the steel companies.
This attitude will run head-on into the steel industry's determina¬
tion to hold the line on wage and fringe increases and thus
help *
"He will go

stem

inflationary forces."

And

here's

another

relish the idea of

angle: The mills themselves would not
working without a contract. There would always

be the

danger of wildcat strikes and the risk of damage to
sive mill equipment.

expen¬

\

Meanwhile, the steel market continued to tighten on the basis
strike hedging and general improvement in business.
Steel1-

of

users

are

laying in

tinue to do

so

as much inventory as
between now and June.

they

will

can and

con-,

Purchasing agents are finding it increasingly difficult to line
supply for first half delivery. The mills are carefully
on the basis of each customer's past requirements. They are also trying to sift out suspected duplicate orders

.

up sources of

*

normally buy from other mills.

Of

on

a

steel

"Steel" magazine reported.

strike,'

.

-

.

The metalworking weekly said most observers still think we
a strike, but they are
not as positive as they were a
couple of weeks ago.
:
%
;
,
• ,
Consumers are pressing for everything they can get before

July 1. So far, there has been little, if any, panic in their buying,
and major producers, told "Steel" last week that the situation is
well

under control.

^

A few weeks ago, consumers were

trying to line up April and
May deliveries, hoping to keep storage and finance charges at a
minimum. Now they are asking that orders be shipped immedi¬
ately. Chances of having deliveries speeded up are poor.
Most mills are fully booked on flat-rolled products, and few
have open tonnage in oil country goods, bars, plates, or structurals.
Chicago, steelmakers are allocating all their products.
Strike-hedge buying is also putting a false front on our ingot'
rate; metalworking's business is not that good.
The ingot rate last week went up 2 points to 88% of capacity.
Output was about 2,492,000 net tons of steel for ingots and cast¬
ings, just under the record output of 2,525,000 tons in the week
of Dec. 17, 1956J The record will probably be broken this week.'
Eleven out of 12 district rates were up or held even.
Steel shipments are slated for a big jump as consumers add
to their inventories, "Steel" said.
March shipment of finished
steel is

expected to top 7 million tons for the first time since June
By midyear, users will have 21 million to 22 million tons

1957.
in

inventory.

Industry observers say that

a

four to six week strike would
Few

users

would have to shut

for imbalances in supplies. An
put stocks at rock bottom. Steelmaking
jump almost immediately after the settlement
capacity, remaining strong until year end.
If there is no strike or a short one, there
except

would

eight-week strike
operations would
to 90 or 95% o£.
-

will be

a

decided

slump in the steel industry during July and August, with opera¬
tions going as low as 45 to 50% of capacity. A slow buildup will
follow, with operations hitting about 75% of capacity by the end of
the year.

-

,

Demand for major nonferrous metals is not

running

.

as

i

.

hard

this

quarter as some prognosticators believed it would, "Steel"
Demand is generally much better than it was a year ago,
are
spotty. Business continues at a gallop for some
metals. Others can't seem to get started.
but

sales

The

magazine's

composite

price

$5.5 billion.

'

factor in the brighter

1959 sales picture
sharp improvement in automobile sales.
Perhaps the most premising development in the industry is
course,

is the expected

a

prime

a

on

steelmaking scrap ad¬
despite continued

gross ton,

absence of active demand.

Previous Steel

Output Records Shattered

America^ Iron and Steel Institute announced that the

of

tons

ingot and steel castings

duction for

1947-49)

of capacity and

Actual

as

a

an

actual rate of ,156.0%

week ago.

output for Feb. 23 week was equal to

utilization of the Jan.
tons.

(based on average weekly pro-.v

compared with

2,506,000 tons

Estimated

1,

85.5%

of the

1959 annual capacity of 147,633,670 net

percentage for the week of Feb. 23

For the Feb. 23 week

of steel

equivalent to 2,535,000"

capacity for the week beginning March 2,

publication.

sales

fers

threat

operating rate of steel companies will average *157.8%

Industry Forecast

synthetic products are ex¬
pected to bounce the rubber industry to greater sales and profits
in the early 1960s, reports "Chemical Week," the McGraw-Hill

sales

t—where the "others" category re¬

strike

steel labor limit its demands to
rise in steel productivity is a tipoff that contract,
negotiations this year will be as tough as they ever were.
"Mr. McDonald indicated he wanted no part of a formula

The

New "Bounce" to Rubber

Automated

the

uses

subsequent

-

build inventories to

average

aluminum producers."

banks

a

vanced 33 cents last week to $42.83

The

aries, which will rise along with
growth of private savings. Life

about

where

to

users

said.

are

the

ings

has ^
"'**

"It

Kefauver's suggestion that

the

make

furnished by financial intermedi¬

loan

Age."

"David J. McDonald, President of the steel union, is too smart "
put himself and his members in such a vulnerable position.". The metalworking weekly said Mr. McDonald's reaction to

down

have arrived," currently are being

cans

loans and investments by
only $6 billion, about half the rate
Two factors

"Iron

sign of union weakness.,

meaningless.

cut steel stocks to the Jan. 1 level.

Turning to More Aluminum Use

their

nancial

said
sure

a

Strike-hedge buying is lowering the odds

cor¬

will
corporations
them-,
selves to finance entirely the an¬
ticipated
expansion
in
receiv¬
ables, in inventory, and in work¬
ing capital, even with substan¬
tially
higher
corporate
profits.
The banking system, too, is not as
liquid as it was at the end of the

thinking,"

will have

thus tar in

porate
hot

wishful

basis in fact.

*
"Contract extensions would be
no

5

page

The State oi Trade and

of

public

than

more

absolutely

New Steel Production Record Looms

Government

market.

not

to its

as

borrower

-

abandon this policy without
assurance
that it *
advantage.
5
"Speculation that the steel union might forego its right tostrike if negotiations for a new contract become deadlocked is. •

higher prices.
will

♦

labor is not likely to extend its contracts with steel
companies beyond the June 30 expiration date, according to "The?
Iron Age," national
metalworking weekly.
"Iron Age" said the United Steelworkers have a traditional
policy of refusing to work without a contract. It added that the

from users who

about
so

60%.

screening all orders

(1) The demand for residential

.

as

company

Tough Steel Contract Negotiations Indicated

con¬

ening in rates will occur, partic¬
ularly during the second half of
the
year,
sparked
by
the
in¬

discounted
now

as

uses

vinces

the

ity, it would not surprise me
to see a temporary pause in

and

inflationary pressures will
considerably stronger.

So far

of the rise in business activ¬

some

of

labor

economy

become

reflect

that

fact

an

capacity

time

optimistic expectations about the
rate of economic expansion in the
months ahead.
They also reflect
widespread fears of mounting in¬
flationary pressures.
In

both

of
for

half

ond

dra¬

prices,

already

look

near

drop in bond

one

matic events of 1958.

one

hopes to install such a machine in its
plants by 1960. The machine—believed to be in the final testing
phase—is said to be capable of turning out 480 tires an hour. And
it is known that other rubber
companies also are conducting
automated production research.

output, lifting

national product to

gross

total of

we have al¬
sharp rise in in¬

since

1958.

has

market

Five

strong

a

direction

a very

rates

lows

lowing.)
•

is

that the

spending, both at the Fed¬

eral and local levels.

I

to

year.

based

the

of

will
the

you my reasons

conclusion,

analysis

the
pro¬

considerable rise in govern¬

a

ment

sources

prices

'

Let

leveling
and

ready had

further

of

in

inventory policies, a
out
in
housing starts,

The effect of this rise in output
will
be
to
absorb
unused
re¬

interest rates in the year to come?
It is my conviction that some

half

funds

of

terest

occur,
second

plant

turnabout in

interest rates, it is -well to bear in

in 1959

What

in¬

mort¬

rise

The

There will be a modest
in business spending for
and
equipment,
a
sharp

increase

reduce

participation

markets.

ahead, the United
enjoy increasing pros¬

year

mind, however, that

The Outlook for Interest Rates
.

perity.

terest rates will continue to be up.
In
analyzing the outlook for

forces of recession.

*-

to

the

States will

their

jected for 1959 in the individual
supply

opposing the

In

individuals

prone

much

as

least

Steel

Summing Up

financial

and

soften,

are

direct

financial

dication

do in

such

bonds

prosperity

tire-making machines that could cut production work

by

At

as
the
economy
proceeds
along the road to full recovery.

demand

inflation

we

in

as

of

more

of

likely, however, that

automated
forces

year,

On the other hand, when
for funds eases and

gages.

the

induce

rates

invest

instruments

mination to defeat the dangers of
as

to

height

It is

reached

gather forward
mo¬
mentum—about the middle of the

to be due to the fact that

dividuals

the

peaks

will

they

went
up,
interest rates
tightened; the • reverse was also
true, a drop in the individuals
and others category being accom¬
panied by a drop in rates. The
sensitivity of this source of funds

more

the

at

now

in 1957.

funds

employment,
larger incomes, higher profits, and
a
generally heightened level of
business activity, it will be a welJ
come
development.
But, unfor¬
tunately, it is likely also to raise

spells

35

(1111)

This

and

disappear. To the extent that

Financial Chronicle

lion in 1958 to $8.7 billion in 1959.

plunges into the second half of
1959, the slack in employment, as
well as in plant and
equipment,
this

and

a

is 89.5%.~

month ago the rate was *142.4%?

Continued

on

and

page

36

*
.

\

36

The Commercial and Financial Chronicle

(1112)

Region climbed to 62 from 46, and in the Pacific to 75 from 67.

Continued from page 35

In two-thirds of the

production 2,238,000 tons. A year
tion was placed at 1,425,000 tons,

the actual weekly produc¬
*88.7%.

States.

or

Pacific

in the East North Central and
;

,

i

Wholesale Food Price Index Continues Downtrend
For the fifth

ago

week

in

a

the wholesale food price index,

row

compiled by Dun & Bradstreet, Inc., declined on Feb. 24, and hit
lowest level since Oct. 22, 1957. It stood at $6.14, compared

the

"'Index

of

production is based

weekly production

average

on

with $6.16

in the prior week for

decline of 0.3%. There was a
the comparable date a year ago.

a

decrease of 7.0% from the $6.60 of

for 1947-1940.

Commodities quoted higher during the

Chrysler Production Swells Car Output
U.

S.

passenger

car

concluded

makers

February operations

with their highest production, volume in six weeks, "Ward's Auto¬
motive Reports" said on Feb. 27.
Scheduled for week ended Feb. 27 were 128,319 automobiles,

6%

than

more

last

sponding week
"Ward's"

week

year

a

and

(120,780)

40%

above

the

corre¬

(91,508).
February car production at 479,000
to 545,757 in January and 392,112 in Feb¬

was Chrysler
Corp., which planned to turn out about 8,500 more cars than in
the preceding period.
Affected more than a month by a glass
shortage earlier this year, Chrysler was in the midst of building
up its assembly programs.
"Ward's" said that in the week of March 2, Chrysler Corp.
expects to have all of its assembly plants active five days for the
first time since the week ended Jan. 17.
In addition, all shifts
will perform nine hours daily. In week ended Feb. 27, Plymouth's
Los Angeles, Evansville and Newark, Delaware, factories were

limited to three days.

Elsewhere,

"Ward's" reported, six-day automobile assembly
work was being turned in at 10 industry sites: six Ford Division
plants; Lincoln at Wixom, Mich.; American Motors at Kenosha,
"Wis.; Studebaker-Packard at South Bend; and Buick-OldsmobilePontiac at Arlington, Texas. Running only four days was a Chev¬
rolet plant at Baltimore.
that

encountered

Division

Ford

a

labor

snag

at its

Mahwah, N. J., assembly plant. An unauthorized walkout
halted production ion the second shift Feb. 25 and operations re¬
mained at

standstill Feb. 26.

a

Truck

output fhr week ended Feb. 27 was estimated by
24,832 units, 2% off last week's total of 25,443, the
high point for 1959 to date.
"Ward's"

at

Electric Output Dips Below That of Previous Week
distributed by the electric light
industry for the week ended Saturday, Feb. 28, was
at 12,972,000,000 kwh., according to the Edison Electric

power

estimated
Institute.

Output the past week
ceding week.
For the week

kwh.

below

that

was

below the level of the

pre¬

ended Feb. 28, output decreased by 287,000,000
of the previous week, but showed a gain of

1,169,000,000 kwh. above that of the comparable 1958 week.
Car

Loadings 17.8% Above Poor 1958 Week

Loading of
totaled 583,181
nounced

Feb.

freight for the week ended Feb. 21,

revenue
cars,

the

This

27.

Association

was

American

of

increase

an

of

88,262

1959

Railroads
cars

or

an¬

17.8%

above the
and

corresponding week in 1958, which included a holiday
blizzard conditions in the eastern part of the country. Load¬

ings

43,449

were

cars

or

6.9%

the

below

corresponding

week

in 1957.

Loadings
above the

total of the price per pound of
31 raw foodstuffs and meats in general use.
It is not a cost-ofliving index. Its chief function is to show the general trend of
food prices at the wholesale level.

in the week

of

Feb.

21

16,047

were

cars

or

Wholesale

higher prices on most grains, livestock, rubber, and
tin, the general commodity price level moved up moderately this
week. The Daily Wholesale Commodity Price Index, compiled by
Dun & Bradstreet, Inc., stood at 277.22 on March 2, compared with
275.73 in the prior week and 280.92 on the comparable date last
year. The current level is the highest so far this year. The previ¬
ous

high of 277,18 occurred on Feb. 11.
A

mills

479

0.6%

reporting
above

to

the

National
for

the

week ended Feb. 21, 1959. In the same week new orders of these
mills were 1.0% above production.
Unfilled orders of

reporting
mills amounted to 42% of stocks.
For reporting softwood mills,
unfilled orders were equivalent to 21 days' production at the cur¬
rent rate, and gross stocks were
equivalent to 45 days' production.

year-to-date, 'shipments of reporting identical mills
0.3% below production; new orders were 4.8% above
pro¬
the

duction.
For week ended Feb. 21, as
compared with the previous week,
production of reporting mills was 6.4% above; shipments were
7.8% above; new orders were 0.6% above. For the latest
week,
as against the
corresponding week in 1958, production of reporting
mills was 9.5% above;
shipments were 15.4% above; and new
orders

were

22.8%

above.

'

Business Failures Decline

Slightly

Commercial and industrial failures
dipped to 296 in the week
Feb. 26 from 310 in the
preceding week,

ended

reported Dun &

Bradstreet, Inc.
331

the

in

254

m

While casualties

comparable

©bove the 284

in 1957

week

and

were

last

noticeably lower than the
they remained slightly

year,

exceeded by

17%

Liabilities

There

bad

liabilities

in

a

Thirty-six of the businesses failing
$100,000 as compared with 30 in the

year ago.

of

excess

preceding week.

Retailing, down to 141 from 151, and commercial
service, down
31, accounted primarily for the week-to-week decline.

to 24 from

The total among

was

a

and transactions were sustained at high levels.

ings

were

light again and there

Export inquiries for rice moved up and a sizable
mitment to Indonesia is expected in the coming week.

steady.

failures

"

4

A

J

major geographic regions reported lower

during the week.

Middle Atlantic casualties
dipped to
107, South Atlantic to 25 from 33, while
sharper drops
occurred in the New
England and South Central States. Contrasting
,*vith the general downturn, failures in the
East North Central
102 from




com¬

well

organizations

business

of

equipped with skilled labor and
v/ith high potential productivity
of all other elements excepting
management.
Where this is the
flaws in leadership eventu¬

case,

deterioration of pro¬

bring

ally

of the or¬
ganization as a whole. There can
be no argument about the impor¬
tance
of
strong
and
vigorous
and. failure

ductivity

leadership.

%

•

One

important opportunity for
maintaining vigor of manage¬
ments lies in the establishment,
through co-operation with labor
unions, of a reasonable line of
demarcation between managerial

those subject to
least through

and

labor agreements. At

of hindsight, managements

use

pany-dominated unions for work¬
Such

Reflecting a decline in receipts in Chicago, hog prices rose
appreciably during the week; hog trading matched that of the
prior week. There was a moderate rise in prices on steers and
transactions were steady; cattle receipts were down moderately.
Sheep receipts were down noticeably and prices edged up.
Cotton

prices on the New York Cotton Exchange were close to
the prior week, and trading was steady. United States exports of
cotton for the week ended last Tuesday were estimated at 71,000
bales, compared with .96,000 in the prior week and 131,000 in the
comparable week a year ago. For the current season through last
Tuesday, exports came to about 1,817,000 bales, as against 3,252,000
during the comparable period last season.

to obtain fair defini¬
aspirations of labor and
such aspirations.
By the same token, domination of
management by labor unions is
equally dangerous and would ulti¬
mately lead to deterioration of
productivity. It would kill off the
of

fair responses to

from which higher wages

sources
can

marked rise in

consumer buying of Spring apparel, furni¬
housewares boosted total retail trade noticeably over
the similar 1958 week, when bad weather discouraged shoppers.

In

addition, more stores were open this year on the Washington's
Birthday holiday. Sales of new passenger cars moved up again
this week and substantial year-to-year gains were maintained,

unions toward extension of

labor

the scope of

volume

retail

trade

in

the

week

ended

25 was 4 to 3% higher than a year ago, according
spot estimates collected by Dun & Bradstreet, Inc. Regional
estimates varied from the comparable 1958 levels by the following
percentages: Middle Atlantic +6 to +10; East North Central and

February

to

South Atlantic

+3

to

+4 to +8; Pacific Coast and West North Central
+7; West South Central +2 to +6; New England, East
and Mountain 0 to +4.

South Central,
There

in purchases of women's Spring coats,
suits, and dresses this week, and moderate gains occurred in
fashion accessories
and
millinery.
Continued clearance sales
was

an

un^urge

promotions helped volume in women's Winter coats match that
of both the prior week and a year ago. Interest in men's Spring
suits and sportswear moved up helping over-all sales of men's
apparel slightly exceed year earlier levels. While volume in men's
Winter suits

was

steady, purchases of furnishings slipped

some¬

what.

the

Federal

the week

Index for

ended Feb. 21,
In the preceding
week, for Feb. 14, an increase of 8% was recorded. For the four
weeks ended Feb. 21 a gain of 12% was registered.

above the like period

last

re¬

and development of
versatility of line and staff

brainpower
the

managers

they move

as

upward.

Development of such men calls
for
an
organization climate in
which

to

free

thought and free ex¬

can prosper.

It must have

permit non-conformists to live

and work with conformists. How¬

this also calls for the weed¬

ever,

ing out of managers who are not
able to

come

year.

up

to the established

standards.

job

of

management

is

to

explore continuously all channels
of

productivity creating increased
and see to it that it is

wealth
shared

on

a

proper

basis between

customers, labor and owners of
capital investment. In this role,
management must remain objec¬
tive and strong. We may well ask;
do the managements

panies

of our com¬
tests suggested

the

meet

here?

of

Much

initial

the

Communism rests

on one

appeal of
economic

principle preached by Karl Marx,
"from each according to his abili¬
each

to

ties,

needs."

are

on a country-wide basis as taken from
increase of 8% was recorded. In the preced-

Reserve Board's

advanced 24%

standards in

cruiting potential managerial

ciple

Sales Up 24%

Department store sales
an

greatest

This calls for estab¬

environment.

lishment of high

a

according

Russian

to

his

Communists

abandoned

themselves

week, for Feb. 14,

the

far,

by

However,

opportunity of securing high pro¬
ductivity of management is
through measures which will aim
at keeping its membership vig¬
orous, competent and alert to the
changing factors of our business

The

of

their jurisdiction into
areas must
be re¬

sisted.

according to scattered reports.
dollar

Thus, efforts of some

come.

sufficient flexibility and tolerance

and

total

to

positively

tions

pression

The

organizations
were
speak clearly and

able

never

management

trading slackened noticeably towards the end of the
week, and prices were down noticeably. Although cocoa trading
was sluggish at the beginning of the week, it picked up at end of
the period; prices were slightly higher than in the prior week.
There was little change in sugar trading and prices were steady.

this

prin¬

time ago and they
openly denouncing it.

long

now

They have adopted the so-called
capitalistic system of paying more
to those who produce more! Mean¬
while, our preoccupations with
the

problems of conflict between
and labor have re¬
in our moving closer to

management
sulted

According to the Federal Reserve

System

department

store

sales in New York City for the week ended Feb. 21 showed a 45%
increase from that of the like period last year. In the preceding

ume

in manufacturing and retailing.
heavier than in 1958 in all other
industry and

nine

strength in the meal

inquiries for flour from the Middle East and Vietnam. Domestic
purchases of rice were sustained at high levels and prices were

weeks ended Feb. 21

the

more

Domestic buying of flour lagged this week, but prices were
unchanged from a week earlier. Exporters reported some scattered

week,

of

was

and oil markets.

However, tolls
Seven

soy¬

expanded considerably at the end of the week and prices
finished noticeably higher than in the prior week. Soybean offer¬

concerns succumbed than last
year

trade groups.

Purchases of

beans

wholesalers dipped to 32 from 33, but manufac¬
turing casualties edged up to 57 from 54 a week earlier. Fewer
were

Responsible for Low +
Output and Inflation

ers.

moderate

pick-up in corn trading and prices
climbed appreciably. Reflecting light receipts, rye prices advanced

as

the 32 of this size

coming months.

limited in the

of

failures

Labor

or

everywhere have come to recog¬
nize
the undesirability of com¬

in the price support program stimulated grain trading this
week, and prices moved up noticeably. The most noticeable price
were
on
wheat as wholesalers expected stocks to be

Nationwide Department Store

ago.

...

loan

the prewar level of

$5,000 or more were involved in 261 of the
against 268 in the previous week and 299 a
Although small casualties, those with liabilities under
$5,000, declined to 35 from 42 last week, they edged a little above
year

ex¬

increases

1939.

weeks

14

the

ture,

production

Is Business

personnel

Department of Agriculture report showing higher than

Retailing Up Noticeably Over Last Year

were

Continued from page

pected estimates of grains and soybeans placed under Government

preceding week.

Lumber shipments of
Lumber, Trade Barometer

Commodity Price Index at 1959 High

Boosted by

A

were

sum

2.8%

Lumber Shipments 0.0% Higher

For

represents the

Coffee

The amount of electric energy
and

The index

ago

units, which compares
ruary 1958.
Responsible for all of the recent week's increase

said

flour,

were

cocoa,

estimated total

•"Ward's"

latest week

and eggs. Lower in price were barley, beef, hams,
bellies, lard, sugar, coffee, cottonseed oil, steers, and hogs.
rye,

Thursday, March 5, 1959

.

.

regions, mortality fell below 1958 levels; the

only increases appeared

The State of Trade and Industry

.

Feb.

in the

14,

an

increase
an

of

1%

was

reported.

increase of 11% was noted

For
over

the

four

the vol¬

corresponding period in 1958.

Editor's Note—Comparisons for the current week of Feb. 21
week ended Feb. 22, 1958, are not comparable for the
reason that
data for the latter week reflected closing of many

with the

stores in observance of

holiday this
week

year

ended Feb.

Washington's Birthday. The incidence of the
will be reflected, if at all, in the data for the

28.

the

of Karl Marx.
around us
excessive pressures for more pay,
This

Utopian idea
is why we

for

shorter

actual work

hours.
fact
more

port

see

hours

and

for

These pressures ignore

that

less

during those shorter

labor

cannot

the

become

productivel without the sup¬
of capital and

of productivity.

other factors

Volume

189

Number

The Commercial and Financial Chronicle

5826

labor

and investors are right in
demanding from us better results
and still higher standards bf liv¬
ing. These objectives will not be

attained unless

in

rections

moving.

we reverse

which

have

Will

the

turn

collective

around?

Will

wisdom

and
on

The Easiness Outlook

the

wisdom of finding a way to open
the floodgates of unprecedent¬
ed prosperity to all?

to

Two With W. G. Nielsen
(Special to The Financial Chronicle)

know

whether

these

not

or

changes will be made.

of

1950's

the

is

with

ending

a

flourish.

have

Consumer

time, there is little

same

likelihood that

into

we

moving di¬
conditions.

are

boom

at

was

high

new

a

level

credit

high

new

a

$45 billion.

in

December

level

above

A substantial part of

Rather, it would seem now that
the problem of the next boom will

the increase for the month

increases during

sofar

into the 1960's.

over

In¬

activity for the balance
of this year is concerned, legisla¬
tion, especially
that related
to
as

in

sales in 1959.

retail

At the

rectly

shall

be held

up

gasoline

on

(5) the making of a new levy
jet fuels.
It is yet too early
In the

sec¬

ond

to

have

we

placing of higher taxes

page

been

we, the managers
industry and leaders of labor,

of

from first

the di¬

have

we

Continued

37

(1113)

automobiles

purchased.
1959

was

in

Further

of the

possibility of having to sell

place, it was assumed that
spending would be held within

the bounds outlined by the Presi¬
dent. However, possible step-ups

loans.

in spending for

'

government securities later in the

suggests that they may be less ag¬
gressive in lending policies than

tion,

highways, educa¬

housing,

etc.,
above
the
budget estimate are
already looming up in Congress.

President's

depen¬

are

for inventory
accumulation, the
financing of receivables, consum¬
er credit
requirements, etc. Fur¬
thermore, banks are not unaware

Since

dent, in large degree, on sales of
cars, appliances and other house¬
hold equipment.
An advance of

most

ries in December

think

1959

is

likely

prosperous

year

to be the
in our his¬

tory, it would

seem to be
propriate time for Federal

an

ap¬

in order to meet demand for

year

rent

And, in addition, the cur¬
liquidity position of banks

they would be otherwise.
The

reserve

makes

it

Reserve

position

clear

that

authorities

considerable

banks

of

the

Federal

keeping

are

tautness

in

the

expen¬

money market. The reserve policy
expenditures, labor and $3 billion of consumer credit this ditures to be reduced and debt
designed by our authorities has to
Boyd and Holcomb G. Moss are housing, will be of special im¬ year would seem to be within the
pared
down.
Director take account of a multitude of
Budget
now with W. G. Nielson Co., 362
realm of possibility.
portance.
Morris Stans has put it this way: economic
developments and, also,
East Olive Avenue. Mr. Boyd was
Thus far, recovery in business
Consumer incomes continue an "If
we
cannot live within our it has to reflect something of a
formerly with Halbert, Hargrove activity has taken place without upward course. Wages and sala¬
means at a time like this, then I
synthesis
of
objectives.
Under

;'f BURBANK, Calif.

& co.

Robert J.

—

V:.;-"

,

Federal

much

help

industry.

Atlas Sees. Adds

12%

CSpecial to The Financial Chronicle)

LOS
P.

ANGELES, Calif.—Harold

Custer

has

been

to

added

the

staff of Atlas Securities Inc., 6505
Wilshire Boulevard.
f'V

r/.

.

.

from

automobile

the

' ;'7'

January

over

428,000,

of

or

and

1958,

sales for the year to date are esti¬
mated to
have been some 13%
better than

a

At the

earlier.

year

time, the reception of the

same

new-model

automobiles

has

not

been

sufficiently impressive
to
suggest spectacular improvement

ri; Joins Morfeld, Moss

in sales this year.

(Special to The Financial Chronicle)

Wi < '■<

|ST. LOUIS,

J.

Mo. —William

McCormack has joined the staff of

Moss

Morfeld,

721

Hartnett,

&

Olive Street, members of the Mid¬
west

Stock

Exchange.

Now With Merrill Lynch
In Omaha Office
(Special to The Financial Chronicle)

Small

office

Omaha

Merrill

of

Lynch,

Pierce, Fenner & Smith Incorpo¬
rated, 305 South 17th Street. He
was former Manager of the Macon,
Georgia office and prior thereto
with

was

the

firm

Cleveland

in

OMAHA, Neb.

—

Ira L. Couch,

been added to the staff of

Smith, Polian & Co., Omaha Na¬

Joins

J
:

,

i'

Building.

Smith, Barney

between

—

Gage-Wiley Adds
(Special to The Financial Chronicle)

SPRINGFIELD, Mass.

Joseph
Klejna has joined the staff of
—

Gage-Wiley & Co., Inc., Third Na¬

has opened
Downer

a

branch office
under

the

B.

than

HILLS, N.
engaging in

J.—Robert
a

securities

business from offices at 16 Joanna

Way under the firm name of R. T.
Neff & Co.
Mr. Neff has been
with F. M.
.

!i

i

Chadbourne & Co.

Form Davis Securities
Securities

Davis
been

has

formed
32nd

East

38

City

to

Corporation
offices at

with

Street,

engage

in

New
a

York

securities

business.

only

months.

high

The latter

de¬

business

More

advance.

With
Lucas, Eisen & Waeckerle
(Special to The Financial Chronicle)

KANSAS CITY, Mo.—Jerry W.

Ramsey, Jr. has become associated
with Lucas, Eisen & Waeckerle,

Inc., 916 Walnut Street, members
of the Midwest Stock Exchange.
Mr.

i

have

months.

in

recent

months,
figure at 1.4

December

moderately
lower.
These
levels of housing construc¬
closely related to the

are

this

FHA

toward

field

earlier.

credit

came

These

included

the

some

develop¬

reduction

of

downpayments

VA

and

easier

which

in

part of the FNMA from April to

September of 1958. Further, there

of the current year.

be kept in mind that
important retarding influence
the
expansion of plant and
must

equipment is the fact that depre¬
ciation allowances in our present
tax laws have not been adequate
in view of the price advance in
recent years.
Allowance for re¬
placement of equipment 20 years
old

is

only

fraction of present

a

this

over-all

of

all

total

kinds has

trend

current

due to

of

construc¬

shown

con¬

will

continue

outlays for highways,
airports, municipal buildings, etc.
new

Following

the

turn

decline

have
and

higher.
trouble

in

of

was

are

now

moving

prospect
of
labor
the steel industry at

cumulation

of

steel

in

excess

ac¬

of

the
increase
in
| demand
which
would be expected during this pe¬

the

of

shortages

business

has

cycle.

been

a

Fear

part

of

it, but there is also fear of higher
prices.
Spurred by this develdpment, the output of steel at the
moment is nearing the peak level
of 1956.

Retail

billion dollar increase in

the

by

showed

only

very

decline in 1958, and re¬

strength of

consumer

buy¬

VA discount controls

in the

same

view

In

of

the

fact

FHA

that

Sales of durable

that we

the

starts

be

expected
Housing con¬

may

in coming months.
struction late in the

annual rate of about

an

million

one

might

year

money
more

attractive

ment

aid

rates, or govern¬
housing, beyond that
outlined in the President's budget
estimates,
is provided
by
Con¬

extension

an

be

made

for

monev

eral

second

is

area of special in¬
position of the Fed¬

the

Federal expendi¬

Treasury.

tures have moved
now

at

upward and are
high since the Sec¬

new

a

World War. Treasury income
has not kept pace.
Secretary An¬

ond

derson's

latest

estimate

the

for

deficit for this fiscal year is $12.9
billion.
The President's prelim¬

inary estimate is for
$100

million

fiscal

a

surplus of

the

following

De

recognized

year.

for

that

such

anced
much

estimate

an

budget

next

for granted.
Congress will

for

bal¬

a

year

takes

first

The

is

with

comply

President Eisenhower's request to
effect
various
changes
in
tax
laws.

Among

these

(1) the
extension of the 52%
corporate
profits tax rate beyond June 30,
1959, when it is due to expire; (2)
are

in tax income

to the

Treasury by taxing life insurance
companies on underwriting in¬
come;

levies

(3) the tightening
on

cooperatives;

up

of tax

(4)

the

the

followed

the

outlook

for

,

ness

scheduled for the

are

of the year.

ance

In

likely

bal¬

any case,

the

be in the
market for new money again in
July, September and December.

Treasury

is

to

relative
rates.

to

the

outlook

First, with busi¬

improving at a satisfactory
rate, Federal Reserve policy could
hardly be expected to shift to the
side

of

second,

ease;

the

current

supply-demand situation suggest3
Should the Treasury limit its bor¬ higher rates for
money; and third,
rowing to the short-term area, interest rate behavior in recent
this
demand
for
short - term months
suggests
that
there
is
money,
along with non-govern¬
ment
borrowing, would suggest
higher short-term rates.

effort

on
the part of the
community to anticipate
changes in Federal Reserve policy

more

business

On the other hand, the cost of and to move
with, or even ahead
long-term treasury borrowing is of it. This tends to make changes
now
higher than it has been for in rates more drastic than they
many years.
This latter develop¬ would be otherwise.
ment is important for many rea¬
sons.
(1) Current yields on gov¬
Two With Richard Harrison
ernment
bonds
are
nearly
the
(Special to The Financial Chronicle)
4Vi% ceiling as established by the
Second Liberty Loan Act;
(2)
SACRAMENTO, Calif. — Ellis
high as the yield on government J. Andreatta and Gary Morano
securities is at the moment, the are now connected with Richard
investor can get a better return A.
Harrison, Inc., 2200 Sixteenth
in
other bond
investments, in¬ Street.

cluding
municipals
and
highgrade industrials; (3) outside-thebudget
spending
by
Congress,

the

with

value

future

more

of

the

dollar

issues still less attractive.

Thus,

LOS

ANGELES, Calif.—Dwight
Phillips has become affiliated

P.

with

Eaton

& Howard, Incorpo210 West Seventh Street.
formerly with Dean Wit¬

rated,
He

was

ter & Co.

Treasury confronts
more
difficult
than

the

problems
those

(Special to The Financial Chronicle)

than the

make long-term Treasury

to

tend

With Eaton & Howard

it occur, will thus present

the Treasury

With

of recent years.

Bateman, Eichler

(Special to The Financial Chronicle)

The Position of Commercial

LOS

Banks

the

Treasury

that

is

to determine, now, how much at¬
trition there will be on refundings

position

Federal

be

months ahead.
it

which

to

Position of the

Our

So

to

near

the

Under

terest

credit policy
present status may
in the

to require.

seem

Thus,

temporary ceiling, since the latter part of the year is one
the debt at mid-year will prob¬
of increasing demands for bank
ably be in the neighborhood of credit from the government and
$285 billion.
from business, while the commerNew money needs of the Treas¬ cial bank reserve
position and the
ury to the end of December
of liquidity position are not overly
this year will be in the neighbor¬ free to expand.
hood of $6 billion.
It is difficult
Thus, three observations may

gress.

The

con¬

objectives might

units,

unless more
becomes available through

expansive

some

ceiling now $283 billion, and the
temporary debt ceiling $288 bil¬
lion
(up to June 30, 1959), it
seems
certain that the Treasury

usual problems; and (4) doubts on
the part of the public relative to

housing

as

ditions might seem to justify, nor
can it be as easy as some
"worthy"

quarter of 1958,

lower level of

circumstances, it cannot be

tight

as

should

a

these

The government debt continues
to rise.
With the permanent debt

applications and VA appraisal re¬
quests fell off sharply in the last

the increase

There is definite prospect

funds

more

an

month.

when seasonal variations are tak¬

now

into account.

the

on

increase in
the VA interest rate in April of
1958, and the renewal of FHA and

being shown.
At the
same
time,
there
is
no
great
"rush" to buy.
The January fig¬
ures were slightly below those of
December, after seasonal adjust¬
ment is made; however, sales cur¬
rently are near the all-time high
en

purchase

the attraction of

into the market

that

ing is

to

However, it must
sales

in April of
Also,
there

and

up¬

mid-year has encouraged the

of

was

1957

of

respectively.

1958,

1958,

the

taken

The

riod

August

decline to

costs.

was
formerly for goods are reported to have made
trust officer with the a new high record in January.

1Union National Bank.

generally
recent

whether

can."

of

course,

units started and January

movement

ever

will have to ask for

of

At the end of the

1958.

current

Ramsey




the

total for

improvement

moderate

J. W. Ramsey

many years

of

commitments

on

doubtful

is

will,

in

levels

the

months

newed

*

with

million

business

18

.

f

year

in expendi¬
tures for plant should soon be in
evidence.
Total expenditures for
plant and equipment during the
year 1959 will come close to the

an

it

The rise in dis¬

changes

small

ments

the

ward

Form R. T. Neff & Co.
SHORT

past

plant.

inventories

T. Neff is

Price
been

velopment is logical at this stage

La

Harry

Rocca.

,

during the

the

of

highs are being established
regularly, and it would seem that

Street

of

that

to

con¬

provide impetus for the advance

boom"

5xk* million.

New

AURORA, 111.—Rodman & Ren¬

V]

and
that the

cars,

tinuous expansion in recent years.

Branch

52

past few years.
posable income

in

tion

management

similar

rate

a

faster

The

Rodman & Renshaw

at

at

tion

tional Bank Building.

shaw

payments.

salary trend is due to
tinue an upward course this

However, the trend is now up¬
ward,
with
equipment
moving

It

Federal Street.

-

and

5

lower

decline

vance

Charles L.
Morgan
has
become
connected
with Smith, Barney & Co.,
140

A.

larger
granted

rate of expansion in plant
equipment in this country

moved

(Special to The Financial Chronicle)

BOSTON, Mass.

to smaller
The
wage

year, the trend should be
upward at a good rate, with pros¬
pects for a 1960 total well in ad¬

Smith, Polian Adds
(Special to The Financial Chronicle)

tional Bank

dividend

largely

in retail sales.

The
and

rapid

Jr. has

for

due

and

in

Florida.

and

slightly,

However, it would seem that with
portion of the market gained by a steady increase in wage rates,
small cars this year will be larger the basis is being laid for further
than last year's 8 or 9%. Com¬ price increases which will come
The price increases of
pared with total car sales last year later on.
of somewhere
in
the
neighbor¬ 1959 will largely come during the
hood of 4V2 million, it would ap¬ latter half of the year.
Residential building has been at
pear that this year's sales might
be

OMAHA, Neb.—William R. Lilliott is now associated with the

over

taken

is

new

a

is the total in December dropped

have been gaining in

cars

popularity
it

at

were

However, January sales high point; however, the increase government

of cars have been some

O.

these circumstances, the
of commercial banks at
is a very important

moment

part of the picture.
In the first
place, it is to be observed that the
amount of government securities
held by the commercial banking
increased during the past
year,
the year-end figure being
$8 billion above that of a year

place, commercial
a
new
high
point at year-end, more than $2
reached

loans

billion

the level

above

of

a

year

become

Floyd

—

associated

Bateman, Eichler & Co., 453
Spring Street, members of

South

Exchange.

For many years he was with Hal¬

bert, Hargrove & Co.

With Evans MacCormack
(Special to The Financial Chronicle)

LOS
B.

ANGELES, Calif,

Odom

with

In the second

bank

has

the Pacific Coast Stock

system

earlier.

ANGELES, Calif.

Mason

with

453 South

of

has

Evans

the

change.

become

—

Bryan

associated

MacCormack

&

Co.,
Spring Street, members

Pacific

Mr.

Coast

Odom

Stock

was

Ex¬

formerly

with Kerr & Bell.

Thus far this year, in¬
creased loan demand has failed to
earlier.

to

the

in

and

seasonal

usual

part to the fact that cor¬

profits have been better
and cash requirements for inven¬
tory building have not yet been
large. In fact, some corporations
have

been

loans

and

mercial

this
nite

to

pay

off bank

buy government

loans

increase
is

in

a defi¬
of expansion later
due to requirements

prospect
year

ANGELES, Calif.—Milton

Cushner

Paul

and

Graham

have become affiliated with Sam¬
uel

B.

Franklin

&

Company, 215

West Seventh Street.

With Glore, Evans & Co.
(Special to The Financial Chronicle)

LOS

com¬

expected during

quarter, but there is

the

se¬

M.

holding.

temporary

substantial

No

in

able
to

for

(Special to The Financial Chronicle)

LOS

mlovement

porate

curities

Join Samuel Franklin

loans have declined
This is in part due

appear and
moderately.

L.

ANGELES,

Kahn

Glore,

is

now

Evans

&

Co.,

wood Boulevard. He

with

Calif.

—

connected

1722

was

Leo
with

West-

formerly

Dempsey-Tegeler & Co.

„

.:

The Commercial an/f Financial Chronicle

(1114*)

38

\

•

.

.

Thursday. March 5, 1959

.

'

* INDICATES

Now in

Securities

ADDITIONS 1

SINCE

Registration

PREVIOUS

ITEMS

•

REVISED

ISSUE

a

American-Marietta

Acme Oil Corp.,

Wichita, Kan.
Feb. 4 (letter of notification) 95,830 shares of common
stock (par $1).
Price—SI.50 per share. Proceeds—For
development of oil and gas properties. Office—Orpheum
Bldg., Wichita, Kan. Underwriter—Lathrop,
Smith, Inc., Wichita, Kan.
Advanced

Research Associates,

and

1

filed 400,000

Williams, Widmayer Inc., Washington, D. C.

Mining Co.
outstanding shares of common
stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future.
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
& Co., Los Angeles, Calif. No public offering expected.
filed

29

640,660

^ Alaska Mines & Metals Inc.
1,431,200 shares of common stock (par $1),
of which 1,000,000 shares are to be offered publicly and
431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Feb. 25 filed

Ltd., the company's parent (payment for the
by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
for cash or for the 6% debentures of the parent at the
for each five

one

3,500,000 shares of common stock (par $2)
cumulative preferred stock (par

and 67.310 shares of 5%

to be used in connection with the acquisition of
stocks and assets of other companies, of which 677,900

Feb. 10,1958, filed 400,000 shares of common stock (par
25 cents). Price—$1 per share. Proceeds—To reduce out¬

$100)

standing indebtedness and for working capital.
1404 Main St., Houston, Texas.
Kaiser & Co., Inc., New York.

I

of

common

stock and

2,500 shares of preferred

shares purchased. Price—$1.25

share. Proceeds—For general corporate purposes and
working capital.
Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment.

per

Jan. 30 (letter of

shares of capital stock. Price

—$10.20 per share. Proceeds — For investment in first
trust notes, second trust notes and construction loans.
Company may develop shopping menters and build or
purchase office buildings. Office—900 Woodward Bldg.,

Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬
dent.
★

notiifcation) .100,000 shares of common
(par $1.60). Price—$3 per share. Proceeds—For
incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo..

stock

expenses
pany.

Underwriter—Ringsby

Underwriters,

Inc..

Denver

2,

Bargain City, U. S. A., Inc.
5,000,000 shares of class A common stock
Price—$3 per share. Proceeds—For expansion
and acquisition or leasing of new sites. Office-— 2210
Walnut Street, Philadelphia, Pa. Underwriter—None.

Dec. 29 filed

American

Natural

Gas

Co.

(par $25)

being offered for subscription by common stockholders
of record

Feb.

26, 1959, at the rate of one new share
then held (with an oversubscription
privilege); rights to expire on March 12. Price—$57.50
per share. Proceeds—To be used as the equity base for
the financing of substantial expansion programs of sys¬
tem companies.
Underwriters—White, Weld & Co. and
Drexel & Co. (jointly).
for each

10 shares

American

Premier

Insurance

Co.

2

(letter of notification) 9,000 shares of capital
stock (par $16) being offered for subscription by stock¬
holders of record Feb. 14, 1959, at rate of 9/16ths of a
share for each share

held; rights to expire on March 10.
Price—$33 per share. Proceeds—For capital and surplus
accounts. Office—15 North Broadway, Rochester, Minn.
Underwriter—J. M. Dain & Co., Inc., Minneapolis, Minn.
American Telemail Service, Inc.

Bellechasse

Oct.

Mining Corp. Ltd.

,

filed 800,000 shares of common stock (par $1).
Price—Related to market price on Canadian .Stock Ex¬
29

change, at the lime the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three
years as follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec); for general prospecting costs;
and for general administration expenses. Office—Mont¬
real, Canada. Underwriters — Nicholas Modinos & Co.
(Washington, D. C.) in the United States and by Forget
& Forget in Canada. Statement effective Jan. 27.
'

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record Nov. 1, 1958 on the basis of one new
share for each four shares held; unsubscribed shares
will

offered

be

to

current

creditors

in payment

Publishers, Inc., Portland, Ore.
Nov. 28 (letter of notification) 22,000 shares of common
stock (par $1).
Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment

17, 1958, filed 375,000 shares of common stock (par'
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

of all
share for each $4
discharged; rights to expire about two weeks
after mailing of offer. Price—$4 f" share. Proceeds—
To pay current creditors.
Address
P. O. Box-506,

Corp., Portland, Ore.

Service, Inc. Offering—Expected early in 1959.

ing—Has been delayed.

Aloe (A. S.) Co.
(3/25)
Feb. 20 filed $2,500,000 of convertible subordinate deben¬
tures due March 15, 1974.
Price — To be supplied by

★ Amphenol-Borg Electronics Corp.

Allied

amendment.

Proceeds—For

working capital and other
Underwriter — Goldman, Sachs &

corporate purposes.

Co., New York.

Feb.

$1).

(3/23-27)
shares of common
stoek. Price—Related to the current market price on the
New York Stock Exchange at time of offering. Proceeds
—To selling stockholder. Office—1830 South 54th Ave.,
Chicago, 111. Underwriter—Hornblower & Weeks, New
March

3

filed

outstanding

100,000

Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.

Armstrong Uranium Corp.
Jan. 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price — 10 cents*per share.
Proceeds—For mining expenses. Office—c/o Hepburn T.
Armstrong, Round Up Heights, Cheyenne, Wyo. Under¬

writer—Bruno-Lencher, Inc., Pittsburgh, Pa.

American Buyers Credit Co.
Nov. 13 filed 5,000/100 shares of common

stock, of which
4,545,455 shares of this stoek are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
Issuable under agreements with various policy holders
In American Buyers Life Insurance Co. and American
Life Assurance Co. (both of
Phoenix) permitting them
to purchase stock at $1.25 per share.
Sales personnel
have been given the right to purchase stock at
$1.25
per share up to the amount of commission they receive
on stock sales made by
them.] Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
states. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
derwriter—N one.

Butler

•

by amendment. Proceeds—To acquire
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
amendment.
Offering—Expected in two weeks.
Atlas Investment Co.

50,000 shares of common voting stock (par
Price — $25 per share.
Proceeds —To purchase
additional contribution certificates of Great Basin Insur¬
$10).

Co.

Office—704

Virginia Street, Reno, Nev.
/
:

American Growth Fund, Inc.,
Denver, Colo.
1,000,000 shares of capital stock (par one
cent)-.
Price—At hiarket.
Proceeds—For investment.

Office—1301 Avenue L, Cisco,
Robert Kamon is President.

Nov. 17 filed

Off*ce-r=-800 Security Building, Denver, Colo.
Underw*iter«American Growth Fund Sponsors, Inc., 800 Se¬
curity Bldg., Denver 2, Colo.

GOOD PROSPECTS
FOR YOUR SECURITIES!
Stockowners
and Mid
Their

are
responsive prospects for securities. In Chicago
America, there are more than 1,400,000 stockowners.

holdings in publicly owned corporations exceed $20

billion.

You

can

best

reach

these

investors

through the
Chipago Tribune .
the midwest's most widely read news¬
paper and the newspaper preferred by business and financial
.

.

executives. Call your

Tribune representative for details.

(Eljirago Oribxute
1X1

WOKLPS

Mid America's most

CHUTIST

H C WS FA/ t

R

"

widely circulated market table pages




At

(56%

Un¬

v_

★ California Electric Power Co. (3/31)
27 filed 300,000 shares of common stock

Tex.

Price—

Underwriter—None.

ic Automatic Canteen Co. of America

Inc.

for the latter's property and assets, and the re¬
maining 166,354 shares are to be issued upon the exercise
of stock options.
Underwriter—None.

stock, of which
226,916 shares were issued by the company between Jan.
1, 1959 and Feb. 28, 1959 to optionees upon the exercise
of options- under the Avco stock
plan, 206,920 shares
common

reserved for issuance upon the exercise of outstand¬
ing options granted under said plan and 153,445 shares
are

are

Stearns & Co.

Peabody & Co.

reserved

for

issuance

granted under the plan.
Bankers

•

(jointly); White, Weld & Co.; and Kidder,
Bids—To be received up to 9 a.m. (PST)

March 31.

ir California

Financial

Corp.,

pursuant

to

options

not

San

Jose, Calif.

Feb. 27 filed 100,000 shares of capital stock.

supplied

by

holders.

Underwriter—William

amendment.

Calvert

Drilling, Inc.

one

R.

selling stock¬
Staats &
Co., Los

•

Jan. 30 filed 100,012 shares of
rate of

Price—To be

Proceeds—To

Vv

Angeles, Calif.

new

common

stock (par SI), be¬

common

stockholders at

share for each five shares held

on

Feb.

24;1 rights

to expire on March 10. Price—$13 per share.
Proceeds—For development of producing properties and
for general corporate purposes. Office—204 South Fair

•

Canal-Randolph Corp/

Jan.

filed

23

yet

■■

Fidelity Life Insurance Co.
Feb. 28,1958, filed 258,740 shares of common stock
(par
$1), of which 125,000 shares are to be offered publicly
and 133,710 shares to employees pursuant to stock
pur¬
chase options. Price—To public, $6
per share. Proceeds—
For expansion and other corporate
purposes. Office—At¬
lanta, Ga. Underwriter—None.

816,721

shares of

being offered in exchange for

common

common

stock
and

(par $1)
preferred

stock

of United Stockyards
Corp. at rate of lr,s CanalRandolph shares for each United Stockyards share held.
In lieu of
stock, a cash offer of $15 per United Stock¬

19.

was

also made.. Both offers expire

on

March

Underwriters-r-New

York Hanseatic Corp., New
Ltd., London, England.-• The
former has agreed to acquire not in excess of 162,500
shares of Canal-Randolph common; and the latter a
maximum of 110,500 shares at a price of $9.25 per share.

York,

•

Manufacturing Corp./
shares of

To be

—

by competitive bidding.
Probable bidders:
Lynch, Pierce, Fenner & Smith Inc.; The First
Corp., Carl M. Loeb, Rboades & Co. and Bear,

Merrill

yards share

'

March 2 filed 292,426 shares of common stock, of
which,
the company proposes to issue 126,072 shares to A.M.I.

★ Avco

(par $1).

Underwriter—W. E. Hutton & Co., New
York, N. Y., and Cincinnati, Ohio, r

cents per share).

March 4 filed 587,281

To reduce bank loans. Underwriter

—

Franklin

St., Olney, 111.

Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
par

Ben

Feb.

ing offered for subscription by

filed

Australian Grazing & Pastoral Co., Ltd.
Jan. 13 filed 4,000,000 shares of common stock.

—

con¬

new

derwriter—None.

to

determined

be supplied

Fidelity Life Insurance Co. (3/17)
280,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital for expansion purposes. Office—Pensqcola, Fla, Underwriter
Alex. Brown & Sons, and
R. 3. Dickson & Co, Inc.
18 filed

III.

provides services and merchandise
Stores.
Underwriters—None.
/;•■;/;;

on

ance

American

Feb.

Brothers, Chicago,

Feb. 17 filed 30,000 shares of common stock to be offered
to certain Ben Franklin Franchise Holders.
Company

acqount of the company and the common shares will
be offered for the account of a selling stockholder. Price

3

None. Offer¬

Brookridge Development Corp.
19 (letter of notification) $200,000 of 6% 15-year
convertible debentures.
Price—At par ($500 per unit).
Proceeds—For expansion and working capital.
Office—
901 Seneca Ave., Brooklyn 27, N. Y.
Underwriter —
Sano & Co., 15 William St., New York, N. Y.

Boston

Feb.

—

Dec.

out¬
standing shares of common stock (par one cent). The
preferred shares are to be offered for public sale for the

—To

one

Bridgehampton, L. I., N. Y. Underwriter

Proceeds

Associated Bowling Centers, Inc.
Nov. 24 filed 300,000 shares of 20-cent cumulative
vertible preferred stock (par one cent) and 50,000

American

Enterprise Fund, Inc., New York
Qqt. 30 filsd 487,897 shares of common stock. Price—At
taarfcet.
Proceeds—For investment.
Distributor—Ed¬
ward A. Viner & Co., Inc., New York.

part of claims, at the rate of

or

of claims

York.

American Asiatic Oil Corp.
Nov. 24 filed 100,000,000 shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.

.

Colo.

(no par).

Jan. 29 filed 486,325 shares of common stock

Feb.

Office—

Underwriter—McDonald,

Bankers Preferred Life Insurance Co.

American Mutual Investment Co., Inc.

Dec. 17, 1957, filed 490,000

Minerals

shares

rate of

Bankers Management Corp.

'

stock have already been issued.

Inc.

Alaska Juneau Gold

Dec.

Co.

shares

Herrick &

shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
Dec.

12 filed

Feb.

and

Rea

Carraco Oil

Brothers

Co., Ada., Okla.

(3/9)

Nov. 10 (letter of notification) 199,733 shares of common
stock (par $1).
Price—$1.50 per share.
Proceeds—For

development, drilling and other general corporate pur¬
poses. Underwriter—Berry & Co., New York
Statement
effective Feb. 25.
Cemex of Arizona,

Inc.

Nov. 17 (letter of notification) 300,000 shares of common
stock

(par 25

cents).- Price—$1

per

share.

Proceeds—

For working capital.
Address—rP. O. Box 1849, 3720 E.
32nd Street, Yuma, Ariz. Underwriter—L. A. Huey
Co.,

Denver, Colo.

1

* Cerro de Pasco Corp.
March

4

tures due

filed

1979

$8,000,000 of 5V2 % subordinated deben¬
(convertible until Dec. 31, 1968) and 61,-

522 shares of common stock to be issued to stockholders

.

Volume

189

Number 5826

.

.

The Commercial and Financial Chronicle

.

of Consolidated

solved

27

Feb.

(3/24)

filed

160,000 shares of common stock (par $2),"
80,000 shares are to be offered for the account
of certain stockholders. Price—To be supplied by amend¬
ment. Proceeds—For working capital. Office—1980 North
of. which

Hawthorne Ave., Melrose Park, 111.
&

Co., Inc., New York.

Room

—

Corp.; Dillon, Read & Co., Inc.; Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; and White, Weld & Co.

Bids—

Proceeds—To invest in real estate. /Office-

pay
of

3748, 120 Broadway, New York, N. Y. Underwriter

Interstate

Gas Co.

(3/11)

17 filed $33,000,000 first mortgage

pipeline bonds,
1979, and 120,000 shares of cumulative preferred
($100 par). Price—Tp be supplied by amendment.
Proceeds
Repay $40,000,000 bank loans; balance for
general funds.
Underwriter—Dillon, Read & Co., Inc.,
and Eastman Dillon, Union Securities & Co.
due

stock

—

Feb. 25

Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent).

Price—$20

Colorado

Feb.

39

^ Colorado Water & Power Co.
(letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and 1,100 shares of common

March 24.

on

Clute Corp.

"

Jan. 13 filed 100,000 shares of capital stock.

pei* /share.

Illuminating Co. (3/24)
$25,000,000 of first mortgage bonds,

due
Payment of bank loans and general
corporate purposes. Underwriter—To be determined by
competitive bidding. Probable bidders:
First
Boston

'/••* yW--'.-U
.

Electric

filed

Proceeds

Expected

Underwriter—Blyth

City Lands, Inc., New York

n.

18

1984.

it Chicago Aerial Industries. Inc.
Feb.

Cleveland

Goppermines Corp., which is to be dis¬
liquidated. Underwriter—None.

and

(1115)

Price—$1

share. Proceeds—To

per

additional costs of construction; and for retirement

obligations and working capital.

Office

stock

(par $1) to be offered in units of $200 of deben¬

tures

and

of stock.
Price
$205 per unit.
working capital. Office—Suite 421, 901
Underwriter—None.
—

Sherman St., Denver, Colo.

c/o John

—

share

one

Proceeds—For

Commerce Oil Refining Corp.

—Model, Roland & Stone, New York. Offering—Post¬

Harlan Lowell, 2200 Kenton, Aurora, Colo, Underwriter

Dec. 16,1957 filed $25,000,000 of first mortgage bonds due

poned

—Lowell, Murphy & Co., Inc., Denver, Colo.

Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be

indefinitely.

?—

offered in units as follows: $1,000 of bonds and 48 share*
of stock and $100 of debentures ?^d nine shares of stock.
Price—To be supplied by amendment.
Proceeds — To

NEW ISSUE CALENDAR

construct
March 6

Pioneer

Hydrotex Industries,

(Cruttenden,

<OT-

Podcsta

Co.

&

Debentures

Schneider,

Berjaet

Cleveland

Electric

1

(Berry &

March

Common

$299,000

Co. )

Aloe

(Auchinclcss,

■

Parker

Redpath)

&

(Goldman,

$750,000

Food

:

LT '

-Common

Ryder System, Inc.,

-t,r

'Blyth

■

Co.,

&

Inc.)

i

(Wednesday)
&

Debentures

Co.)

Stores, Inc

$2,500,000

-Debentures

—

Offering to stockholders—underwritten by Eastman
Union

Securities

&

Co.)

par

investment.

(10 cents

Officc-^-450

shares of
share).

per

So.

Main

com¬

Pro¬

St.,

Salt Lake City, Utah.

:

Sachs

Price.—At

Salt
City, Utah. Underwriter—Earl J. Knudson & Co.,

Lake

^ Composite Bond & Stock Fund, Inc.
Feb.

Fair

shares

150,000

25

stock.

mon

ceeds—For

$25,000,000

(A. S.) Co..______

Drug Fair-Community Drug Co., Inc.--Debentures

Nov.

shares

Illuminating Co.—___—-Bonds

(Bids to be invited)

Commercial Investors Corp.
28 (letter of notification) 900,000

.—.Common

160,000

refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.
;y;;A /

York.

(Tuesday)

(Blyth & Co., Inc.)

(Monday)
21—

24

Chicago Aerial Industries, Inc

&

$300,000

9

Carracc Oil Co.-

{:

Inc.-

and

Hickman)

March

March

(Friday)

Dillon.

filed

26

shares

(by amendment) an additional 226,839
capital stock. Price—At market. Proceeds—

of

For investment.

$21,750,000

Office—Spokane, Wash.

J.W!

F X

■'

March

10

iC.

Ducommun Metals & Supply Co.—
(Blyth 6c Co.. Inc.)

...Common

Itek

Treat

6c

Inc.

Co.,

and

'wr-v:

Bids

/><

Myron

•

i: 7

/."/'

30

1C

A.

Ohio

Lynch,

Colorado

(Dillon,

Read

$1,500,000

Smith,

Inc.)

Co

Gas

Inc.

Co.,

&

Bonds

:____

and

Eastman

States

y:$i

11

Dillon,

Servateria

March

Corp.)

9

PST)

a.m.

11

1

EST)

13

Co.

&

Blyth

Lock Joint

Pipe Co

(Kidder.

Acceptance

Venture
.r

White

I.

clu

&

Brown

&

Co.

-If.':

be

April

Louisiana

invited)

7

$7,000,000

14

&

(Bids

April

$2,475,000

be

invited)

15

—Preferred

$7,500,000

to

be

17

R.

S.

Common

127,500

shares

Brockton

Edison

Dickson

Common

&

Co.,

Alabama

Power

Inc.)

Debentures

,__

$5,000,000

Co

April

——Preferred

30
be

to

$2,000,000

Co.,

Inc.)

30,000

Bonds
invited)

}20,000,000

& Curtis and Mitchum.
Temnleton) $5,000,000

Jones

(Tuesday)

/■' May 26
West Penn Power Co.__

shares

/.

•/

••

(Bids

<_

Bonds

I

received)

be

to

March

18

May 28
(Bids

(Wednesday)

Texas Eastern Transmission Corp
(Dillon,

Read

6c

Thorncliffe Park Ltd
/'-,
(Bathe

•ril
'0r
■rl

March

T

Co.,

Co.)

&

19

;

'■

■iV

Products

Offering

to

Kalmau

$15,000,000

4.000

$15,000,000

Co.,

Inc.)

42,193

by

of

March 20
-i
'

General

Builders

to

be

invited)

2

invited)

Bonds

$25,000,000

(Tuesday)
$30,000,000

to

Debentures
$40,000,000

Power Co

June 25

Mississippi Power

shares

(Bids

Common

Drug Fair-Community Drug Co., Inc. (3/9-16)
$750,000 of 5Y2% subordinated sinking fund

1, 1974 (with warrants attached
purchase 37,500 shares of $1 par value common stock
A).
Price—At par (in units of $500 each). Proceeds—
To finance current operations, to open new drug stores
and to retire $60,000 of outstanding 8^% debentures.
Office—Arlington, Va. Underwriter—Auchincloss, Park¬
er & Redpath, Washington, D. C.

to

be

Bonds

invited)

Supply Co. (3/10)
150,000 shares of common stock (par $2).
supplied by amendment. Proceeds — For
repayment of outstanding indebtedness; for expansion
program and purchase of additional facilities and equip¬
ment; and to finance an expected increase in inventories

$5,000,000

(No

underwriting!

March

Amphenol-Borg

23

/

Waste King

100.000

Blower <k




to

be

invited) $18,000,000

Power

$1,750,000

$20,000,000

Pennsylvania Power Co
(Bids

to

be

Invited)

Bonds
$8,000,000

Office—4890 South Alameda

non, Calif. Underwriter—Blyth
cisco and New York.
Eastern

Jan.

30

St., Ver¬
& Co., Inc., San Fran¬

Utilities Associates

filed

96,765 shares of

common

stock

(par $10)

being offered for subscription by common stockholders
record

March

the basis of one new
(with an oversubscription
privilege); rights to expire on March 19. Price—$38.25
per share.
Proceeds — To reduce bank loans.
Under¬
writer—Stone & Webster Securities Corp.,
4,

1959

on

Electronic Assistance Corp.

(3/10-12)

Feb. 18 (letter of notification) 100,000 shares of common
stock (par 10 cents) of which 5,000 have been reserved

Bonds

Co

(Bids to be invited)

.Preferred
McDowell•

Montana

receivables.

and

•

Postponed Financing

—Debentures
and Clayton Securities Corp.)

be

share for each 12 shares held

Bonds

Common
shares

$2,500,000

Corp.—

(Straus,
i.

(Bids

Corp..

Window Corp.—
>

(Thursday)

Georgia Power Co

(Monday)

Weeksi

(Cruttenden, Podesta & Co.

Debentures

$2,131,000

Electronics

<Hornblover &

Miami

/___

16 filed

Price—To

•

(Thursday)

Co._

September 10

(Friday)

Corp

consumer

for

Feb. 10 filed

of

-

H

filed

finance business, and balance to be
working capital.. Underwriter — Investment
Service Co., Denver, Colo., on a best efforts basis. -

used

Feb.

(Bids to be received) $20,000,000 to $25,000,000

Common

stockholders—underwritten
oj

(Bids

Virginia Electric

Co

Inc., Amarillo, Texas
300,000 shares of common stock (par 50
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or acquisi¬
6

'

(Thursday)

Public Service Electric & Gas Co.—

units

(Thursday)

;

Indiana-Steel

Inc.)

be

to

June

-Preferred

-Debentures & Common

Underwriter—None.

Ducommun Metals &

&

Southern Electric Generating Co
J-.v

porium, Pa.

new

to

(Thursday)

shares

&

Price—$1
equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
Proceeds—For

share.

debentures due March

Co._

(Bids

Pro¬

June 5 filed 350,000 shares of common stock.

(Thursday)

(Bids to be invited)

/./t-

...Common

Hughes

invited)

April 23

(Tuesday)

and

be

to

Co

unit.

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds — For repayment of loan; purchase of plant and
office equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
1740 Broadway, Denver, Colo. Underwriter—L. A. Huey,
Denver, Colo.

tion

$14,000,000

(Tuesday)

Telephone

(Bids

$300,000

Co.)

&

State

per

Office—80 Fifth Avenue, New York,
Underwriter—Ross, Lyon & Co. Inc., New York.

N. Y.

Jan.

Bonds

invited)

Price—$2

Diversified

(Wednesday)

April 21

held.

common

keting program.

per

(Tuesday)

Light Co

to

rate

Derson Mines Ltd.

-Equip. Tr. Ctfs.

invited)

warrant, to be offered for subscription by holders
common stock of Cormac Photocopy Corp. at the
of one such unit for every six shares of Cormac

one

(Tuesday)

be

to

Power

Common

Co.)

Webber, Jackson

•

to

(Bids

Diamond

$270,000

i

General Telephone Co. of the Southwest--Preferred
(Paine,

shares

(Thursday)

Pittsburgh & Lake Erie RR

-Preferred
&

Foster-Forbes Glass Co

hrr

166,716

Bonds

(Bids

(Bids

2S0.000

(Raffensperger,

Common

Co.)

(Monday)

Pont

Sons,

shares

1,799,057 shares

EST)

Wisconsin Power & Light Co

American Fidelity Life Insurance Co.—
(Alex.

120,000

Co

April
Common

—

Stag Manufacturing Co.——.

March

Mi '■

..Common

Corp

&

Inc.)

Common
a.m.

Cormac Chemical Corp.

ceeds—To finance the company's development and mar¬

shares

203,250

$300,000

Kaufman

/ /(Barsh

(Francis

Power

Common

Options, Inc.——

/,■/'

v:,h.

Co.,

Co., New

Jan. 22 filed 108,667 units of 108,667 shares of common
stock (par one cent) and 108,667 common stock purchase

Photography

—

Peabody

$5,891,280

Co.)

&

(Offering to stockholders—bids 11

(Friday)

March 16

$16,000,000

(Wednesday)/

and

I. Underwriter—McLaughlin, Kaufman &
York, N. Y.
/

of the

Bonds

Columbia Gas System, Inc.

Signal Co.————Common

(Sano &

shares

Common

Peabody

business.

warrants, each unit consisting of one common share and
Common

300,000

—

a.m.

April

Gulf
—:

Curtis)

Co.)

'McLaughlin,

(Tuesday)

$17,000,000

(Thursday)

Fund, Inc.

(Bache

Consumer

Common

AMP, Inc.

(Offering to stockholders—underwritten by Kidder, Peabody
& Co. and Prescott//Wright, Snider Co.) 100,000 shares

,

$25,000,000

Corp.-

31

Price—
Proceeds—For operation of a small loan
Office—904 Hospital Trust Bldg., Providence,

share.

per

R.

Alstyne, Noel & Co.) 275,000 shares

(Bids

(Kidder,

Western Casualty & Surety Co.

Standard Sign &

$1,250,000

EST)

a.m.

it Consumer Acceptance Corp. (3/16-20)
Feb. 25 (letter of notification) 54,000 shares of 30-cent
cumulative convertible preferred stock (par $1)

Monongahela Power Co

—Debentures

The First Boston

12

Investors Research

Co.)

filed

3

$3,000,000 of participations in the com-4
pany's investment plan for salaried employees, together
with 100,000 common shares which may be required
pursuant thereto.

$5
Preferred
Bonds

March

Preferred

Royal Dutch Airlines

Simplex Wire & Cable Co
.". '(Paine, Webber, Jackson &
it-

Bonds

$30,000,000

(Monday)

&

April 2

,

Loeb

shares

Co.) /$33,000,000

Preferred

March

Common

Corp

Fuller

D.

(Bids

(First Boston-Corp.;, Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith. Inc.; and White, Weld <fc Co.> $6,000,000

and

United

M.

it Consolidation Coal Co.
March

Co.,

&

Co.—

-

Union Securities & Co.) $12,000,000

(Smith, Barney & Co.

Carl

ancl

.1.800,000

i

30

Products

(Van

$5,000,000

Equitable Gas Co

KLM

Power

Stanley

—

(Bids

(Billon, Read & Co., Inc. and Eastman Dillon.

"Si't-.;

Co.

Co

<S.

Colorado Interstate Gas Co.—

■

Seal

(Wednesday)

Union Securities

\

&

Co., Inc

Morgan

California Electric Power Co

11

&

Gold

Ohio

$300,000

Hart)

Loeb

Co..

shares

200,000

1 ————Debentures

Fenner'&

Interstate

u'ir

&

—

Pierce

March

Savard

and

&

March

Life Insurance Co. of N. Y._Com.

6c Co.

White Stores, Inc...
(Merrill

Co.)

Pacific Tea

(Bids to be invited)

Common

_.

&

Edison

Webber,

$25,000,000

Co.—

Lomasney

Standard Security
(Ira Haupt

(CST)

a.m.

Specialties

Towbin Co.i

Rhoad.es & Co.

Northern Indiana Public Service Co,——__—Bonds
Research

i 1

Kuhn,

Common

_i;

&

Barney

S300.000

by Paine,
164,842 share's

6c Curtis)

Unterberg,

Atlantic

Common

Bruno-Lenchner, Inc.t

Corporation

Common

E.

(Smith,

(Offering to stockholders—underwritten
Jackson

Great

150,000 shares

Electronic Assistance Corp.—.
(Amos

R, Inc

(Tuesday)

for sale to two

directors, at $2.70 per share. The offer¬
ing of such 5,000 shares expires 24 hours after first be-

Continued

on

page

40

40

The Commercial and Financial Chronicle

(1116)

Continued jrom page

of

public.
Price—S3 per share. Proceeds—
For research and development of ultrasonic equipment
and for working capital.
Office—20 Bridge Ave., Red
Bank. N. J. Underwriters—Amos Treat & Co.. Inc., New
offered to the

York, and Bruno-Lenchner, Inc.,

selling

in equal shares by the

Trust

Jan. 19
common

1.

,

—

redeem

To

be

at

supplied

of

short-term

New York.

by

$127,500

par

debenture bonds due July 2, 1972, which are

$250,000

Pittsburgh, Pa.

Emerite Corp.

Proceeds—To

amendment.

6%

Price

stockholders.

•

Greenridge Acres, Inc., Silver Spring, Md.
(letter of notification) 750 shares of preferred
(par $100) and 750 shares of common stock
(par
$1).
Price—At par.
Proceeds—For working capital.

of

Feb. 11

owned

stock

selling stockholders, and to repay
notes payable to Manufacturers
E. Unterberg, Towbin Co.,

Address—c/o Mrs. M. B. Jackson, Sec. and
Treas., 11003
Childs St., Silver Spring, Md.
Underwriter—None.
<

Underwriter—C.

Co.

New York.

(letter of notification) 250,000 shares of series 3
stock (no par) to be offered for subscription

Gridoil

General Aniline & Film Corp., New

York

Feb.

by

stockholders on the basis of one share of series 3
stock for each three shares of series 1 and/or series 2
common stock held: unsubscribed shares to other stock¬

14, i957 Hied 4z6,98b murti of common A siocn ;■«
:>ar) and 1,537,500 shares of common B stock ipai It
Proceeds—To the Attorney Generai of the United Siatei

holders.

Rights expire 30 days from offering date.
per
share.
Proceeds—For working capital.
Office—333 S. Farish Street, Jackson, Miss. Underwriter

Underwriter—To be determined

Price—$1

'robable bidders; Biytn

—None.

I

an.

Pro¬
First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith, Inc.; and White, Weld & Co.

due

shares of common stock (par $1).
Proceeds—For investment. Office
New York. Underwriter—Glore, Forgan
& Co., New York. Offering—Expected during the latter
part of March.
Co., Gallipolis, Ohio
(letter of notification) 30,027 shares of common

(par $3.33%). Price—$8 per share. Proceeds—To
selling stockholders. Underwriter—Westheimer & Co.,

chasers
who

Federated Corp. of Delaware

due

Finance

Feb.

A

common

writer

Oct.

to

be

sold

to

group

a

with

warrants

if

★

liich.

Virginia Corp.
12 filed 1,154,730 shares of class B common stock
(par $1). to be offered in exchange for 38,491 shares of
stock of Old Dominion Bank at the rate of 30

6hares of First Virginia class B stock for each one share
©f Old Dominion common stock.

of

Avenue,

Advisory

Service;
Managed

C.

Development Corp.
of notification) 22,820

of

Florida Builders,

shares

of

of

convertible

preference

stock

for/each

stock held on or about
Nov. 1,
Stockholders will have 45 days in which to exer¬

1958.

common

cise

the rights.
Price
At par.
Proceeds
To repay
debts, acquisition of investments, and for general
pur¬
—

Address—P.

poses.

of pur¬

O.

—

Box-348, Albany, N.

Y.

Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
stock
(par $1).
Price—$5 per share.
Proceeds—For

Oct. 22

subscription

not exercised in at least the amount of $500,unit. Proceeds—To repay promis¬

of

payment

past

due

accounts

and

loans

and

next week.

• Hercules
Feb.

25

Powder

Co.

filed

$5,000,000 of interests or participations in
company's Employee Savings Plan, "together with

the

Merchandising Corp., Memphis, Tenn.

40,000 shares of common capital
purchased pursuant to the plan.

^o0,0o0 shares of class "A" common stock

General Telephone

stock

which

Highway Trailer Industries, Inc.
24 filed 473,000
outstanding shares

Nov.

19

filed

250,000

Price—At

par

shares

($20

per

of

cumulative

of

Underwriter—None.

share).

ment

and

project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
other corporate purposes.
Office—700 43rd St., South,
St. Petersburg, Fla. Underwriter—None.
•

common

Hinsdale
Dec. 29 filed
000

shares

p

of

capital stock, and 2,000 debenture notes.
common stock at
par ($1 per share) and the
notes in units of $500 each. Proceeds—For
construction
of a track, including

Price—The

land, grandstand, mutual plant
building, stables and paddock, dining hall, service build¬
ing, administrative building, penthouse, tote board and
clubhouse.

Underwriter—None.

:

general

ceeds—For

if Food Fair Stores,

Inc.

(3/25)

subscription by common stockholders of record March 24^
1959, on the basis of $100 principal amount of debentures
for

each

expire

25

shares

of ^Common

stock

held;

rights to
To be supplied by

April 10, 1959. Price —,
Proceeds—For general corporate purposes,
including additional working capital and future capital
expenditures. Underwriter—Eastman Dillon, Union Se¬
on

amendment.

curities & Co., New York.

subordinated

debentures

stock after Feb.

(convertible
into
common
29. 1964 at rate of four shares for each

$100 of debentures). Price—Of stock. $20 per share; and
©f debentures, at face amount.
Proceeds—To repay bank
loans and for working capital.
Underwriter—None.
•

Foster-Forbes Glass Co.,
Marion, Ind.
Feb. 25 filed 30,000 shares of common
stock
Price —To

el 1 i

be

supplied by amendment.

stockholders.
Underwriter
Hughes & Co.. Inc., Indianapolis, Ind.

s

n

g

Foundation

Jan.
fered

13

Investment Corp.,

filed 231,988 shares of

for

subscription

by

—

(3/17)

(par $1.50).

Proceeds —To

Raffensperger.

Atlanta, Ga.

common

stock

—To repay notes.
Office—515
Ga. Underwriter—None.




to

1967, convertible into shares of com¬
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.
mon

share. Proceeds—For capital and surplus.

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 pending Supreme Court de¬
on

variable annuities.

if Great Atlantic & Pacific Tea Co., Inc. (3 25)
March 4 filed 1,800,000 shares of common stock
(par $1).
Price — To be supplied by amendment. Proceeds—To
selling stockholders. Underwriters
Smith. Barney &
Co., Morgan Stanley & Co., Kuhn, Loeb & Co. and Carl
—

be

of¬

stockholders; unsold portion

to be offered publicly. Price—$12.50 per share.
\

(216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of % warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible
cap¬

Proceeds

Candler Bldg., Atlanta,

M.

Loeb, Rhoades & Co., all of New York.

if 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—

Underwriter—None.

Telephone & Telegraph Co. of Virginia

Feb. 19 filed 92,160 shares of
capital stock to be offered
for subscription by stockholders of
record Feb. 27, 1959,
on the basis of one new share for each four shares

held;

if Imperial Growth Fund, Inc.
:

.

of stock held

cision

Proceeds—For working capital and
purposes.
Office — 2202 Philtower

rights to expire on April 3., Price—At par ($5 per
share). Proceeds—To repay short-term bank loans. Un¬
derwriter—None,

s

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders of common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held
(1,334,570 shares are now outstanding); (2) to holders of
common
stock (par $1.50) of Government Employees
Life Insurance Co., on the basis of 1% warrants per share

per

:

Home

(par $5).

share.

March 2 filed 600,000 shares of common stock.
Proceeds
For investment.
Office

market.

Nov. 13 filed

Price—$3

•

Annuity Life

Office—Government Employees Insurance

per

corporate

Bldg., Tulsa, Okla.

,„

ital debentures due

if Forestry Suppliers, Inc., Jackson, Miss.
Feb. 20 (letter of notification) 1,000 shares of common
stock (par $10) and $30,000 of 10-year 6% convertible

Price—$6

Co., New York. Offering—Expected

'

i"

Feb. 27 filed $21,750,000 of 20-year convertible subordi¬
nated debentures due 1979 to be offered
initially for

&

Government Employees Variable
Insurance Co.

mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. • Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.

-

Raceway, Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,-

Home-Stake Production Co.,
Tulsa,, Okla.
Now 5 filed 116,667 shares of common stock

by accounts receivable; in prepayment of two promissory
notes; and the balance lor working capital. Underwriter
—S. D. Fuller & Co., New York.

Fluorspar Corp. of America

Feb. 5 (letter of notification—as amended)
300,000 shares
©f common stock.
Price—At par ($1 per share). Pro¬

be

a

if Gold Seal Products Corp. (3/30-4/3)
March 2 filed 125,000 shares of 6%% cumulative con¬
vertible preferred stock (par $10). Price—To be supplied
by amendment. Proceeds—To be applied towards the
balance due on a mortgage held by A. J. Armstrong Co.,
Inc.; to the prepayment of certain indebtedness secured

Proceeds—For purchase and development of subiivision land, including shopping site; for new equip¬

may

Price—At prices generally prevail¬
ing on the American Stock Exchange. /, Proceeds —To
selling stockholders.
Office—250 Park Avenue, N. Y,

Co. of The Southwest (3/17)

this week.

■nit.

general

working capital. Office — 35-10 Astoria
Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co.. Suite
1512,
11
Broadway, New York 4, N. Y.
Offering—Expected

Stanley Heller

to be offered in units of $100 principal amount of deben¬
one share of common stock.
Price — $110 per

tures and

Under¬

writer—None.

company)
additional

high temperature atmosphere furnace and additional
equipment and the balance will be added to work¬
ing capital and be used for other corporate purposes.
Office—88 Spectacle St., Cranston, R. I.
Underwriter—

Inc.

nbii*

preference stock (par $12) to he
subscription by stockholders on the basis

for

share

test

Dec. 1 filed $4,000,000 of 6% 15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common stock,

^

J

.

shares

convertible

one

10

Industries, Inc.
Jan. 30 filed 110,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To retire $35,000
of 6% preferred stock; for research, development and im¬
provement of new and present products; for purchase,

Feb.

investment.
Washington, D, GIf

(letter

offered

Glass-Tite

First

23

noting

preferred
Proceeds — To
repay bank loans.
Office—2470 West Princeton St., San
Angelo, Tex. Underwriter—Paine, Webber, Jackson &
Curtis, Boston and New York; and Mitchum, Jones and
Templeton, Los Angeles, Calif.

Proceeds—For working !
Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot Bldg., Detroit,

(pari.10

Proceeds—For

Investment

—

stock

common

stock (par 25 cents).

stock.

stock.

of

Underwriter—Investment
Associates, Inc., Washington, D. C.

of

Tenn.

—

common

debentures

mea

io

Feb.

shares of class

are

also stockholders of the
also to purchase certain

D.

Heartland

to pur¬
$100 de¬
for the

(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purpbses. Under¬
writer— Union
Securities
Investment
Co., Memphis,

Price—At par ($1.50 per share).

capital.

are

are

agreed

of

General

Co.

Industry, Inc.

16 filed 200,000

(each
warrant

Advisor

ment

projects as the company may undertake. Office—2413
Third Ave., New York, N. Y. Underwriter—None.

(letter of notification) $300,000 of 10-year
eenior subordinated debentures. Price—At par (in de¬
nominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha. Neb.
Finance For

a

shares

Washington,

and the balance, if any, will be added to
working capital, to be used in part to reimburse the
company's treasury for payments made upon the acqui¬
sition of land and as working capital for such building

17

Dec.

stock

by

Ltd.

America, Inc.-*-

250,000

Investment

notes,

sory

Underwriter—None.

Federated
Nov.

common

filed

4

cents).
Price—At market.
Office —1325 Connecticut

Price—$100 per

000.

$442,000 of the debentures in exchange for Consumers
debentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries
of Federated. Office-—1 South Main Street, Port Chester,
Y.

have

rights
,

$210,000 of the debentures to purchase the capital stock
of Consumers Time Credit, Inc., a New York company;

N.

(who

amounts

$918,000 of 6% convertible subordinated
1968. The company proposes to offer

filed

of

accompanied

warrants

with

tures

Cincinnati, Ohio.
29

foe

Leases

shares of common stock to be of¬
for $2,818,000 of 5y2% convertible

'.v.-.'v.;;-Vi'-'-r-Jv/./."ic'

April 30, 1969). The company proposes to offer holders
of its
outstanding common stock and its outstanding
cumulative preferred stock of record March 20, 1959, the
right to subscribe to a total of $1,631,000 of the deben¬
tures with warrants.
The remaining $500,000 of deben¬

stock

Dec.

shares

will

563,600

Growth Fund of

Feb.

purchase for cash of 10 common shares at $3 per share
at any time beginning Oct. 30, 1959 to and including

share.

Evans Grocery

debentures

1963, with detachable warrants

30.

213.100

benture

26 filed 2,500.000

9

April

chase

—14

Feb.

i

Inc., and The First B«>•
Loeb
&
Co.,
Lehm*.

★ General Builders Corp., New York (3/20)
Feb. 26 filed $2,131,000 of 6% subordinated debentures,

if Eurofund, Inc.

Freehold

filed
in

exchange
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.

Bids— ft**
;een scheduled to be received up to 3:45 p.m
EDT, .
•day 13 at Room 654, 101 Indiana Ave., N. W., Washtni
on 25, D. C., but
bidding ha* *een postponed

($100 par). Price—To be supplied by amendment.
ceeds—Repayment of bank loans. Underwriter —

jprice—$20 per
Wall St.,

by competitive biddl'

5

fered

on
Corp.
(jointly),
Kuhn,
Jrothers, and Glore, Forgan &. Co, (jointly).

•

Equitable Gas Co., Pittsburgh, Pa. (3 11)
Feb. 18 filed 60.000 shares of convertible preferred stock

Feb.

& Co.

drilling wells and working capital. Office—632 W.
St., Erie, Pa. Underwriter—John G. Cravin & Co*

9th

March 3 filed 200,000 shares of common stock (par $1),
of which 100.000 shares are to be sold for the account

If not accepted such shares will then be

ing extended.

For

(3/25-26)

Inc., New York

★ F X R,

39

Thursday, March 5, 1959

—

vt /'»
Price—At
—

quette Ave., Minneapolis, Minn.
Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

if Indiana Steel Products Co.
Feb.

26

filed

to

be offered

at

the

or

about

rate of

April 2.

42,193
for
one

shares

of

60

Mar-

—

Min¬

(3/19)

common

subscription by
share for each

stock

common
seven

(par $1)

stockholders

shares

held

on

March 18, 1959; rights to
expire on or about
Price—To be supplied by amendment. Proceeds

—For

construction, machinery and equipment, and fc
provide additional funds for working capital and othel
corporate purposes. Office—405 Elm St., Valparaiso, Ind
Underwriter—Kalman & Co., Inc., St. Paul, Minn.: a
Industrial Minerals Corp.,
Washington, D. C. * *
luly 24 filed 600,000 shares of common stock (par oni
lent). Price—$1 per share. Proceeds—To develop and
)perate graphite and mica properties in Alabama. Ua.

lerwriters—Dearborn
both of

&

Co.

Washington, D. C.,

ment effective Nov.

and

on a

Carr-Rigdom & Co.
best efforts basis. State¬

18.

International

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, twounit; series C, $1,000,000, four-year 4% pei
unit; and series D. $3,500,000, 6-year, 5% per unit). Pricf
—100% of principal amount.
Proceeds
For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C.
Dec. 29 filed

year,

3%

per

—

Investment Corp. of Florida
(letter of notification) 55,555

Oct. 9
stock

—For

shares of commor
(par two cents). Price—$4.50 per share. Proceed:
capital account and paid-in surplus. Office—At¬

lantic Federal Building, 1750 E. Sunrise
Boulevard, Ft
Lauderdale, Fla. Underwriter—None.
»
,

Volume

189

Number 5826

.

.

.

The Commercial and Financial Chronicle

41

(1117)

ic Investors Funding Corp. of New York

ooses.

Feb.

17 filed
$500,000 of 10% subordinated debentures
July 31, 1964, to be offered in units of $1,000. Price
—At 100% of
principal amount. Proceeds—For invest¬
ment.

Office—511 Fifth Ave., New York, N. Y.

i Lumberman's Acceptance Co.

.

v

,

for

each

four

shares

held

&

/Magic Mountain, Inc., Golden, Colo.
27 filed 2,250,000 shares of common
stock. Price—

$1.50 per share. Proceeds—For construction and
working
capital. Underwriter — Allen Investment

Co., Boulder,

Colo.,

.

best-efforts basis.

on a

penses and first three months* operational
expenses. Of¬
fice—1250 Wilshire

it Major Finance Corp.
Feb. 13 .(letter of
notification) $200,000 of 6% 8-year
subordinated debentures (with transferable
warrants);
$50,000 of 4% 8-year subordinated debentures (with

about

Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco
4, Calif.. ,-'
'v
Nedow
Oil Tool Co.

March 9, 1959;
remaining 14,000 / transferable
warrants); and 2,500 shares of class A com¬
shares will be offered.to
eligible employees. Price—To
mon
stock (par $10). Price — Of
be supplied by amendment.' Proceeds—To be
debentures,, at face
used for / amount
(in denominations of $500 and $1,000); of stock,
acquisition of Photostat Corp.; to purchase additional $12 per share. Proceeds—For working capital. Office—

rights to expire

on

on

March

or

24.

The

■*

laboratory, production and other equipment; riowards
construction of a new building on a plant site in Lex¬
ington, Mass.; and the balance for general corporate puf^

Feb.

.

26

filed

shares of

(by amendment)

common

For investment.

£'itemco

•

Nov. 28

(letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—To
acquire machinery and equipment and additional space

Miami

Feb.-25

filed

additional
market.

Office—St. Louis, Mo.-

Window

(with stock

an

stock. Price—At

Corp.,

$3,500,000
purchase

Hialeah,

of 6y2%

warrants

V

-

-

debentures

due

writer

per

B.

—

Fennekohl

&

Plastics

Co., 205 East 85th St., New

behalf of

the

and 40,000

company

supplied by amend¬
Proceeds—To finance the acquisition of additional
provide for future working capital
requirements. Underwriters—Smith, Barney & Co. and
The First Boston
Corp., both of New York.
ment.

Laure Exploration
Co., Inc.,

and

Arnett, Okla.
stock. Price—$2

Lefcourt Realty Corp.
Jan. 29 filed 3,492,000 shares of

2,622,000
the
&

shares

common

issued

were

stock of Desser &

of Van

option

Mound

Trail

Feb.

account of

a

of

"young,

aggressive

expanding life

are

Ling Electronics, Inc.
Jan. 27 filed 335,000 shares of

(4/1)

common stock (par 331/a
cents), of which, 136,716 shares are to be sold for the
of selling stockholders.
Price—To be supplied
by .amendment. ' -Proceeds—For general corporate pur¬

account

poses/Underwriter—Kidder, Peabody tc Co., New York.'
V- Lorain

Telephone Cq.
\i. xZiV-l■Feb. 11'(letter of notification) 1,562 shares of common,;
Stock (no par) to Be offered for subscription by stock¬
holders on a pro rata basis at the rate of one new share

Underwriter—None. ; '

^Louisiana Power & Light Co. (4/14)
March 3 filed 75,000 shares of cumulative preferred stock
(par $100).: Troceeds—For property improvements and
Other corporate purposes.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: HalStuart & Co. Inc.: White, Weld & Co., Blyth & Co.,
Inc. and Shields & Co. (jointly); Merrill
Lynch, Pierce,
Fennqr & 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 on April 14.
sey,

Mining Corp.
Sept. 29 filed 350,000 shares of
^er share.

under

Proceeds

—

.

(Union

(jointly);

Harriman Ripley & Co.
Inc., and Stone & Webster Secu¬
rities Corp. (jointly); Blyth &
Co., Inc. Bids—Expected
to be received
up to 11 a.m. (EST) on March 30.

Oil, Gas & Minerals, Inc.
Nov. 16 (letter of
notification) 116,000 shares of common
(par 35 cents).
Price—$1 per share. Proceeds—
For development of oil and
gas properties. • Office—613

stock

International Trade Mart, New Orleans
12, La.
Under¬
writer—Assets Investment Co., Inc., New
Orleans, La.
O. K. Rubber
Dec.

Welders, Inc.

15

filed 60,600 shares of common
stock,
of 3^4% debentures
maturing on or before

$43,333.33
May 6, 1965^
$692,000 of 6% debentures maturing on or before Dec.
31, 1974 and $123,000 of 7% debentures due on or befora
May 6, 1965. The company proposes to make a publie
offering of 25,000 shares of common stock at $10 per
The remaining shares and the debentures af*
subject to an exchange offer between this corporation
O. K. Rubber, Inc., and O. K.
Ko-op Rubber Welding
share.

,t

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¬
'

System,

on an alternative basis.

Proceeds—Qf the publio

offering, will be used for additional working capital
and/or to service part of the company's debt. Office—
551 Rio Grande
Ave.,
None.

Littleton, Colo.

Underwriter—

-

;

,.

Oppenheimer Fund, Inc. /
■*->../•
5 filed 100,000 shares of
capital stock. Price—At
(about $10 per share). Proceeds—For invest¬
ment. Office—25 Broad St., New York. Underwriter—
Oppenheimer & Co., New York.
Dec.

•

National Finance

Co., Detroit, Mich.
Jan. 27 (letter of notification) 25,000 shares of 6^4%
cumulative preferred stock (with common stock purchase
-warrants

attached) offered to stockholders on Feb. 16;
rights expire on March 16, 1959. Shares not subscribed
and paid for will be offered to employees and others by
the company commencing March 16.
per

Price—At par ($10
Proceeds—For working capital. Office—1307

share).

Industrial

Bldg., Detroit 26, Mich. Underwriter—None.

National

Theatres, Inc.
Dec. 30 filed $20,000,000 5V2% 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¬
chase warrants. Basis of Exchange—Shareholders of Na¬

market

•

Pacific Power & Light Co.

Jan. 27 filed 207,852 shares of common stock

being offered to

common

1959 at the rate of

rights to expire

(par $6.50)

stockholders of record March 3,
share for each 20 shares
held;

one new

on

March 25. Price

—

$37.50

per

share.

Underwriter—Ladenburg, Thalmann & Co., JNew York;
Paramount Mutual Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock.

Price—Mini¬
purchase of shares is $2,500. Proceeds—For invest¬
Office—404 North Roxbury Drive, Beverly
Hilla^
Calif. Underwriter—Paramount Mutual Fund Manage¬
mum

ment.

ment. Co.

are

common

stock.

Price—$1

For the acquisition of
properties

option and for various geological expenses, test

drilling, purchase of equipment, and other similar




Lynch, Piercet,

Fenner & Smith Inc.
(jointly); Eastman Dillon
Securities & Co. and Salomon Bros. & Hutzler

Power Co.

warrants.

LuHoc

Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and Merrill

Power Co.

struction program through .1959.
Manager-Dealers—
Smith, Barney:& Co., Kidder:Peabody & Ca and Blyth
& Co., Inc. Offering—Indefinitely postponed.!
\

first mortgage bonds dua
Proceeds—To repay bank loans and for construc¬

1989.

July 1 filed 100,000 shares of common stock (no par).
The stoek will be offered only to bona fide residents
of Montana.

March 25.

tion program.

—

Montana

Corp*

on

Ohio Power Co.
(3/30)
Feb. 24 filed $25,000,000 of

Halsey, Stuart & Co. Inc.; Lehman Bros.;
Lynch, Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld &
Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea¬
body & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room 2033, Two Rector St.,
New York, N. Y., but company on Aug, 22 again decided
to defer sale pending improvement in market conditions.

March 3 filed 166,716 shares of

to

Bids—Expected to be received

competitive bidding.
& Co. Inc.; Eastman

Merrill

one share of Altec stock.
The offer is subject
to acceptance by holders of at least
80% of the outstand¬
ing Altec stock.

Ohio.

To be determined by

able bidders:

stock for

Ninth St., Lorain,

(3/31)
$16,000,000 of first mortgage bonds due
Proceeds—For construction program. Un¬

writer—To be determined by competitive bidding. Prob¬

common stock, to be of¬
exchange for the outstanding capital stock of
Altec Companies, Inc., on the basis of one share of
Ling

in

for approximately each 15.1129 shares held-at the close
of business on'Feb. 2,
1959;-Price—$32 per share. Proceeds
To reimburse the treasury.
Office — 203 W.

and

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Together with other funds, to be used to
repay $15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬
Proceeds

Portland, Me.

★ Lock Joint Pipe Co.

—

Montana

and

insurance

companies and related companies and
then to operate such
companies as subsidiaries." Under¬
writer—First Maine Corp.,

fered

filed

11 Fla¬

repay "bank loans.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.;
Morgan Stanley & Co.; Glore, Forgan
& Co.; Eastman
Dillon, Union Securities & Co. an<3
White, Weld & Co. (jointly); The First Boston

be

bidders: Halsey, Stuart
Dillon, Union Securities & Co. and Salomon Bros. &
(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 Power Co.'s
office, 50 Broad St., New York, N. Y.
/

selling stockholder. Un¬

and

will

Inc.,

26 filed
$30,000,000 of first mortgage bonds duel
1989. Proceeds—For
property additions or improvements

Hutzler

Life Insurance Securities
Corp.
March 28, 1958, filed 1,000,000 shares of
capital stock (par
$1)^ Price—$5 per share.
Proceeds—To acquire stock
control

24

derwriter

derwriter—None.

other

and the balance
Underwriter—None.

Probable

by the company to purchase from Big
Corp. some 3,784.9 acres of Ihnd on or

to be sold for the

surplus.

April 1, 1984.

for the exercise

before May 1, 1.959; and the
remaining 120,000 shares

to

Hialeah,

—

Feb.

Monongahela Power Co.

%

stock, of which
exchange for all of
Garfield, Inc., and D. G.
common

used

stock, $8.75 per share; for special
stock, $131.25 per share. Proceeds—For con¬
common

subsidiary),

added

Underwriter

Henry & Associates,
mingo Plaza, Hialeah, Fla.
★r Ohio Edison Co. (3/25)

struction program, to purchase shares of Coastal Chem¬
ical
Corp. (a

in

R., Inc.; 750,000 shares will be

—

Fla.

filed 200,000 shares of common stock (par
$5)
shares of special common stock (par $75).

common

To be determined by
competitive

Oak Ridge, Inc.
|
Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1). Price —
$3 per share. Proceeds
For
working capital. Office—11 Flamingo Plaza,

Price—$1

8,000

Priced—For

common

share.

—

24

pro¬

—

bidding. Probable bidders: Halsey, Stuart &
Co., Inc.;
Equitable Securities Corp.; Eastman
Dillon, Union Se¬
curities & Co., Lehman Brothers and
Bear, Stearns 8&
Co. (jointly); The First Boston
Corp.; White, Weld Ss
Co.; Dean Witter* & Co.; Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Harriman
Ripley & Co., Inc. Bids—Expected to be received
up tc»
10:30 a.m. (CST) on March 10.

Mississippi Chemical Corp., Yazoo City, Miss.
Dec.

Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.
per

gram. Underwriter

share. Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

jet aircraft and to

:;

Securities

per

To be

Dec. 23 filed 400,000 shares of

Clayton

Millsap Oil & Gas Co.
Dec. 23 filed 602,786 shares of common stock.

KLM Royal Dutch Airlines
(3/11)
Feb. 19 filed $17,000,000 of convertible subordinated de¬
—

•

(the "1959 Fund"). Price—$15,000 per unit. Pro¬
For working capital, etc. Office — 500 MidAmerica Bank Bldg., Oklahoma
City, Okla. UnderwriterMidamco, Inc., a wholly-owned subsidiary, Oklahoma
City, Okla.

—

Price

and

Corp., the selling stockholder. Underwriter—None.

Northern Indiana Public Service Co.
(3/10)
Feb. 10 filed $25,000,000 of first
mortgage bonds, series*
J, due Jan. 15, 1989. Proceeds — To be used for
gross
additions to utility properties of the
company including
prepayment of bank loans incurred for construction

Fund

ceeds

shares by

selling stockholders. Price
At current market when
offering of 90,000 shares is made. Office—400 Nepperhan
Ave., Yonkers, New York. Underwriter—None.

bentures due 1979.

-

Mid-America Minerals, Inc.
Jan. 19 filed 100 units of participations in Oil and Gas

$2.50 per share, from Nov. 1, 1959 to Nov. 1, 1961. The
remaining 90,000 shares will be sold publicly; 50,000
on

111.;

V c.

★ New York Shipbuilding Corp. j, J 1 /
Vl/j/V';'/
'
March 3 filed 621,353 shares of common
stock. Price—•
To be supplied by amendment. To
be offered from timo
to time either on the New York Stock
Exchange at prico
prevailing at time of sale or by public or private sale
at related
prices. Proceedsi — To Merritt
Chapman 8&
Scott

share.

Podesta & Co., Chicago,
Corp., Boston, Mass.

Manufacturing Corp.

Feb. 16 filed 120,000 shares of common
stock, of which
30,000 shares are issuable upon exercise of warrants, at

shares

1974

preferred stock, $10
Proceeds—To pay accounts payable and for
general corporate purposes.
Underwriters—Cruttenden,

York, N. Y.
J. E.

/

150,000
(par $8).

shares of 70-cent convertible
preferred stock
Price—Of debentures, at par; and of

laboratories; and for working capital. Office—
Ave., Port Washington, L. I., N. Y. Under¬

V

•

attached), and

4 Mahhasset

for test

-1

7,500,000

-

Underwriter—T. J. Campbell Investment
Co., Inc.,

Houston, Tex.'

Proceeds—

Fla.; (3/23)

Houston,

Tex.

Ave., Silver Spring, Md. Underwriter—None.
^ Managed Funds, Inc. -/-vV.V
<
i

Underwriter—Paine- Webber; Jackson &
Curtis,

poses.

\

May 5. (letter of notification) 150,900 shares of common
stock (par one cent).
Price—-$2 per share. Proceeds—To
pay loan; to acquire fishing tools for
leasing; and tot
working capital. Office—931 San Jaeinto Bldg.,

; 7833 Easter

Boston and New York.

16, 1959. Dealer-'
Podesta & Co., Cantor, Fitzgerald
Co., Inc., and Westheimer & Co.

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumuIative voting and non-assessable common stock. Price—
At par ($1 per
share). Proceeds—For organizational ex¬

Jan.

'

war¬

Managers—Cruttenden,

Ave., Santa Rosa, Calif. Underwriter—None.

Investment Advisor—In¬

Co., Santa Barbara, Calif. Underwriter
—Bache & Co., New York.
j
'
Itek Corp. (3/10)
;
Feb.: 12 filed 178,842 shares of common stock
(par $1),
of which a total of
164,842 shares will be offered for
subscription by stockholders at the rate of one new share

exchange

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 expires March

($100 per share). Proceeds — To purchase conditional
sales contracts and make loans. Office—1022
Mendocino

Investors Research Fund, Inc. (3/13)
Jan. 9 filed 490,940 shares of common
stock. Price—$12
per share.
Proceeds—For investment. Office—922 Laguna St., Santa Barbara, Calif.
vestors Research

National Theatres stock in
exchange for each share of
National Telefilm. For each outstanding warrant of Na^
tional Telefilm, the holder will receive an

Feb. 19 (letter of notification) 1,000 shares of cumula¬
tive convertible preferred
stock, series A. Price—At par

Under¬

writer—None.

Offices—Wilmington, Del., and Emporium, Pa.

Underwriter—None.

due

pur-

tional Telefilm will receive $11 principal amount of de¬
bentures and a purchase warrant for one-quarter share of

Peckman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).

Continued

on

page

42

The Commercial and Financial Chronicle

(1118)

42

stock

Continued from page 41
Price
At market. Proceeds—For investment!
writer—Investors Investments Corp., Pasadena,

Under
Calif.

!

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1989.
Proceeds—To redeem a like amount of 5% first mori

Underwriter—To be determinec
Stuar
& Co.
Securities Corp., and Shields & Co. (jointly)

bonds due 1987.

gage

by competitive bidding. Probable bidders: Halsey,
& Co. Inc.; Kidder, Peabody & Co.; White Weld

Equitable
Lehman Brothers, Eastman Dillon, Union Securities A

Ladenburg, Thalmanr
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smitt
and Dean Witter & Co. (jointly). Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT!
on Aug. 27
but company on Aug. 22 decided to defesale pending improvement in market conditions.
SEC
on Feb. 25, 1959 extended to June 16, 1959 period within
Co., Salomon Bros. & Hutzler and

which

company

27 filed 500,000 shares

from

fered

time

to

the company and its
of

stock

options

time

to

of common stock to be ofofficers and employees of

subsidiaries pursuant to the terms

under the

granted and to be granted

•

filed 57,651

(par $1)

being offered for subscription by common stockholders
at the rate of one new share for each 10 shares held on

(with an oversubscription privilege); rights
to expire on March 16. Price—$27 per share. Proceeds
—For construction program. Underwriter—White, Weld
Feb. 27,1959

& Co., New

D. C.

Hydrotex Industries, Inc. (3/6)
Feb,0 5. (letter of notification) $300,000 of 6% subordi¬
nated sinking fund convertible debentures (fully regis¬
■

Pioneer

tered), due March 1, 1969. Price — At par and accrued
interest.
Proceeds—For acquisitions, etc.
Office—267

Bldg., Dallas 6, Texas. Underwriters—Cruttenden, Podesta & Co., Chicago, 111. and Schneider, Bernet
& Hickman, Dallas, Texas.

Meadows

• Prairie

fibreboard Ltd.

effective Feb. 25.
Jan. 15 (letter of notification) 200,000 shares of common
stock

(par one cent) of which 170,000 shares are to be
sold by the company and 30,000 shares by a selling
stockholder.
Price — $1.50 per share.
Proceeds — For
general expansion and working capital.
Office—1108
16th Street, N.W., Washington 6, D. C.
UnderwriterJohn C. Kahn Co., Washington, D. C.

stock (par $1). Price—$1 per share.

Proceeds—To prove
up ore and for road and camp construction. Office—At
Suite 322, 200 Bay St., Toronto, Ont., Canada, and c/o T.
Arnold, Wilson Circle, Rumson, N. J. Underwriter—
Sano & Co., New York, N. Y.
• Rassco

Financial Corp.
A
June 26 filed $1,000,000 of 15-year 6% series A sinklnj
fund debentures due 1973, to be offered in denominationj
of $500 and $1,000.

Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrite)
—Rassco Israel Corp., New York, on a "best effort*'
basis.

J

Investing Fund of America, Inc.

Feb. 24 filed 200,000 shares of capital stock.
market. Proceeds—For investment

Price—At

Office—Englewood,

N. J.

Price—$2.50 per share.

Proceeds—For additions;

Underwriter—First Mutual Securities of America,

Inc.

★ Research Specialties Co. (3/10)
Feb. 19 (letter of notification) 50,000 shares of common
stock (par $1). Price—$6 per share. Proceeds—To
repay
short-term indebtedness and for general corporate pur¬

Office—Richmond, Calif. Underwriter—Myron A.
Lomasney & Co., New York.

Feb. 26

construction program.

April

80,000 shares of common

program.

Petroleum

Ltd., Alberta,

Canada

June 26 filed 1,998,716 shares of common stock
(par $1)
Of this stock, 1,174,716 shares are to be sold on behalf o)
the company and 824,000 shares for the account of cer
tain selling stockholders. The
company proposes to offe:
the 1,174,716 shares for subscription by its shareholder)
at the rate of

one

new

share for each three shares helc

(with an oversubscription privilege). The subscriptioi
period will be for 30 days following issuance of sub¬
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 workinj
capital. Underwriter — Pacific Securities Ltd., VaD
couver,

Canada.

Routh

Robbins Investment
Corp.
Jan. 29 filed 475,000 shares of common stock.
Price—$1
per share.
Proceeds — For investments and working

capital.

Business

Alexandria, Va.

—

Real estate investments.

Office

—

Underwriter—None.

★ Rowan Controller Co.
14 (letter of notification)

Feb.




920

shares

of

common

be

supplied

by amendment. Proceeds—Fo^V)
Underwriter—Dillon, Read & Co.*
'„*•
*
.
.

Inc., Dallas, Texas /
;
Feb. 11 filed. 691,851 shares of common stock (par $1).
and 737,974 shares of 4% cumulative preferred stock!
(
series 1959 (25 par—convertible on or prior to May V
1969), to be offered in exchange for common stock. ,of f
Metals & Controls! Corp. on the basis of three-quarter,

stockholders

each 25 shares of stock held.

by amendment. Proceeds — For
Underwriter—Allen & Co., New

be supplied

construction

Price—To

i

$200 of debentures and warrants for the pruchase of two
shares of stock for subscription by common

fifed 150,000 shares of preferred stock <par $100),cj

Inc., New York.

purchase
stock to be offered in units of

1984 and common stock warrants to

1,

Texas .Instruments,

share of Texas common stock for each Metals &

York.

common,

Control?

share, T>r, if the holder elects, for eight-tenths '

★ Selected American Shares, Inc., Chicago, III. V ^ of a preferre^^shares and four-tenths of a common
March 2 filed (by amendment) an additional 1,250.000 > Underwriter—None.
shares of common capital stock. Price — At market.
Thorncliffe Park Ltd. (3/18-20)
Proceeds—For

investment.

(letter of notification) 8,500 shares of common
capital stock (par $10) being offered to stockholders of
16, 1959 on the basis of one share for each
13 2/17th shares held (after giving effect to a stock di¬
vidend of lV/2%). The warrants expire on March 16,
1959. Price—$35 per share. Proceeds—For working cap¬

record Feb.

pany's current bank loans; and the balance for working
capital and general corporate purposes/ Address—Postal
Station R, Toronto, Ont., Canada. Underwriter—Bache 8c
Co., New York." :
'
;

Office—Branchville, N. J. Underwriter—None.

Service

Life

Insurance Co.

,

United

Sept. 26 (letter of notification) 3,567 shares of commoi
stock (par $1). Price—$18.75 per share.
Proceeds—Tc
go to a selling stockholder. Office—400 W. Vickery Blvd.,
Fort

•

Worth, Tex. Underwriter—Kay & Co., Inc., Hous¬

ton, Tex.
March

filed

2

(by amendment)

an

additional 1,000,000 /

shares of Beneficial Interest. Price—At market. Proceeds
—For investment.

/
i20,000 shares of class A common stock.
Price—$3 per share.. Proceeds—To provide the reservet
required to' be held in life and accident insurance poli^
cies, and to pay the necessary expenses in producing
Insurance., Offfce—Louisville, Ky.
Underwriter—Nohe.
Edmond, M." Smith, is President.
;

Proceeds—For investment.

Office

Price—Ai
1033-30tb

—

St., N. W., Washington 7, D. C. Investment Advisor—In¬
Fund

Management

Sheridan-Belmont

Corp.

Former

\
Hotel

Name•

„

4

,

United: States

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip
tion by common stockholders on a pro rata basis. PriceAt par. Proceeds—For working capital.
Office — 3171;
North Sheridan
•

Rd., Chicago 14, 111

Simplex Wire & Cable Co.
19

United Security Life & Accident Insurance Co.

Aug. 22:' filed

Industry, Inc.
Dec. 12 filed 50,000 shares of common stock.

vestment

Employees Insurance Co.
•
V
April 16 filed 2,000,000 shares of common stock (par
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and officfe space, by;
lease or purchase.
Office
Wilmington, Del. Under-/?
writer—None.
Myrl L. McKee of Portland, Ore.; it
President. "
•
;
■i V*
•

Shares in American

market.

filed 203,250

Underwriter—Non#

(3/12)

shares of capital stock

(no

par).

and

Underwriter—Paine, Webber, Jackson & Curtis, Boston
/

•

000 shares of 6%

a

Inc., New York

*

$50 debenture and

one

Inc., New York.
Nov.

-

•

y

Feb.

9

t

* *

f,

,

'~st
f

common

stock

construction

of

a

Grand Estes Hotel

and Con7

2

of America, Portland, Ore.^

;

April 30,1957 filed 1,250,000 shares of common stock (par
16 cents).
Price—To be sunolied by amendment (ex¬
pected to be $1 per share).
Graham

Proceeds—For exploration

Underwriter—To be named by amendment*

purposes.

Albert

Griswold

Portland,

of

ident.

Ore.,

is

Pres¬
f

.

Utah Minerals Co.

^

.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
Office—305 Main St., Park City/ ;
Under^writers-Walter Sondrup & Co., Salt Lakt-

April 11
mon

stock.

—For

Utah.

-

Arenas (Delaware) Inc.
Nov. 18 filed 461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders.; Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—
Sports

Standard Security Life Insurance of
New York (3/10)

for

Uranium Corp.

i

Inc.

$2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969
Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand two present establishments
by increasing
the number of alley beds by eight at Yorktown Heights
and by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter-

•

New York

.

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located.in Larimer County, Colo*
Office -T- 330 South 39th Street, Boulder,. Coio. Under¬
writer—Mid-West Securities Corp., Littleton, Colo..hk

18 filed

None.

•

vention

(.

(Delaware)

None.

/

United Tourist Enterprises, Inc.
28 filed 4,500,000 shares of class A

and

share

preferred stock. Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
Arenas

-V

(par 50 •cent's)."- Price—$2 per share.
Proceeds—For
development and:-construction of a "Western Village'*

•

of

Sports

Underwriter—Van Alstyne, Noel & Co,;

Los Angeles.

Jan.

10-year debentures and 5,participating preferred stock (par $50)

to be offered in units of

Underwriter—None.

★ United.States; Servateria Corp. (3/30-4/3) ; >
March 3 filed 275,000 shares of common stock. PriceTo be supplied by amendment.
Proceeds—^To selling
stockholders. Office—2522 South Soto St., Los Angeles*
Calif.

•

Glass & Chemical Corp.

Office—Tiffin, Ohio.

ing stockholders. Office—79 Sidney St., Cambridge, Mass.

Sire Plan of Elmsford,
Nov. 10 filed $250,000 of 6%

,

Nov. 26 filed 708,750 outstanding shares of common stock;
Price—At market. Proceeds — To selling stockholders. ;

Price—To be supplied by amendment. Proceeds—To sell¬

and New York.

W

(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-/
6eeds—For repayment of a loan; to. retire all of the

Jan. 23

ital.

share.]'

Feb. 20 filed. $4,000,000

poses.

Richwell

,

(3/18/'!^..,^;

★ Texas Eastern Transmission Corp.

working capital. Office—South St. Paul, MimtT Under-; ;
writer—None.
*
;;' 'v '^

Feb.

Mines, Ltd.

Jan. 28 (letter of notification) 290,000 shares of common

,

t

held.

Shares in America, Inc.

Prudential Enterprises, Inc.

Research

Strategic Minerals Corp. of America; Dallas, To*.,

ycoittj;,

★ Shareholders' Trust Fund of Boston

Aug. 18 filed 209,993 shares of common stock (par $1.50
to be offered for sale to residents of Canada in the Prov¬
inces of Manitoba, Saskatchewan and Alberta and tc
residents of the United States "only in the State of Nortl
Dakota."
Price — $3 per share.
Proceeds — For con¬
struction purpose.
Office—Saskatoon, Saskatchewan
Canada. Underwriter—Allied Securities Ltd., and United
Securities, Ltd., both of Saskatoon, Canada. Statement

Raindor Gold

.

■;*. March 31 filed

Selected Risks Insurance Co.

5, D. C. Underwriter—Sade & Co., Washington 5,

acquire other life,

,

York.

Pilgrim Helicopter Services, Inc.
Jan. 9 (letter of notification) 12,000 shares of comraor
stock (par $3). Price — $5 per share. Proceeds — For
working capital. Office—Investment Bldg., Washingtoi

and to

$2,000,000 of first lien mortgage 6% bonds,
and 975,000 shares of cflmmon stock (par 10 cents). Prtes:
Ave., Baltimore 18, Md. Underwriter—None.
V
—For bonds, 95% of princmal amount; and for stock $1 ★
Runnymede Corp.
per share.5 Proceeds—To erect and operate one or more
Feb. 12 (letter of notification) 20,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To pur-,-r chemical processing plants using the Bruce - William*
Underwriter—" '
chase land and lor general corporate purposes. Business : Process to beneficiate manganese ores.
Southwest Shares, Inc., Austin, Texas.-' r' ' f
:
\.—Housing Develcpment. Office — 927 Market St., .Wil¬
mington, Del. Underwriter—None; '.
'
;
: ★ Texa*'fc6;t^v«-:-;>S/'-r,
Feb. 25 fildd" "$13,500,000 'of participations • id' the
St. Paul Ammonia Products, Inc. ■»
>
>
Dec. 29 filed 250,000 shares of common stock (par 2Vin¬ pany's Employees Savings: Plhri/together, with ~238,32ir
shares of ,'its capital stocl< .which may be acquired
cents), to be offered for subscription by common stock-'
plSr-!^
suant to (he plan.
holders at the rate of one new share for each four share)
,']>•

Price—To

Inc.
shares of common stock

Piedmont Natural Gas Co.,
4

Miss.

14, 1961. Price—$14 per share. Proceeds—For de¬
velopment of new products. Business—Manufactures and
sells electrical controllers.
Office—2313-2315 Homeland
Jan.

at the rate of one unit for

company's Stock Option Plan of 1958.
Feb.

and bonds

companies. Address—P. O. Box 678, Gulfportt
Underwriter—Gates, Carter & Co., Gulfport, Miss.

insurance

★ Scranton-Spring Brook Water Service Co.
March 3 filed $8,000,000 of sinking fund debentures due

consummate financing.

& Co., Inc.

(Chas.)

• Pfizer
Feb.

may

Invested in stocks

(par $10) to be issued upon exercise of stock pur¬
warrants during the period from Jan. 15, 1956 to

chase

Thursday, March 5,1959

.

..

mining expenses.

City, Utah.

/ ;

.

.

I A

•

Utah Oil Co. of New York,

Inc.
May 6 (letter of notification) 300,000 shares of capital. !
stock. Price — At par ($1 per share). Proceeds — For.
development of oil and gas lands. Office—574 Jeffersoa -

Ave., Rochester IV N. Y. Underwriter—Frank P. Hunt
Sr Co., Inc.; Rochester, N. Y,,.
V..'
;
/
V *
,

•

Venture

Options, Inc.

/

(3/16).

filed

'Cv.

200,000 shares of common stock (par $2).\ Jan. 27 (letter of notification) 60,000 shares of commory:;
stock (no "-"par)'.1 Price—$5 per share. Proceeds—To be^
Price—$7.50 per share. Proceeds — To increase-capital
and surplus. Office—221 West 57th St., New York-, N. Y.
deposited: with member firms of the; New York Stock.;
Underwriter—Ira Haupt & Co., New York.
<,
-Exchange to guarantee Puts; and Calls written by the;
^company end fo cover, expenses. Office—730 Fifth Ave./• Standard
Sign & Signal Co. (3/13-16)
-New York 19, N.;Y. Underwriter—Barsh & Co., 663 Main
Dec. 17 (letter of notification) 300,000 shares of com¬
Ave., Passaic, N. J.
,
mon
stock.
Price—At par ($1 per share).
Proeeeds—
To promote and expand the development of the Safety
Walnut Grove Products Co., Inc.
School Shelter business. Office—c/o Brown Kendrick,
Feb. 9 filed $500,000 of 6% sinking fund debentures,'/
6130 Preston Haven Drive, Dfellas, Texas.
series B, due, 1969.; Price—100% of principal amount.*
Underwriter
Proceeds—For capital improvements.
—Sano & Co., New York, N. Y. •
Office—Atlantic;
Iowa. Underwriter—The First Trust Co. of Lincoln, N?b.
State Life, Health & Accident Insurance Co.
# Waste
July 9 (letter of notification) 50,000 shares of common
King Corp. (3/23-27)
stock (par $1).
Feb. 20 filed 100,000 shares of series C 6% cumulative
Price—$5 per share. Proceeds—To be
r

.

1

k

Volume

189

Number 5826

.

.

The Commercial and Financial Chronicle

.

(1119)

'.wa;\

',

■"

V

.

k

;

Brockton

purchase

Edison

Co;

(4/23)

Feb. 23 it Was reported that this
company plans to issue
and sell 20,000 shares of preferred stock

1

—

for

of

182,000 shares of Cribben &//
(par $100). Un¬
Sexton Co.; towards the development and tooling of
To be determined by
new^' derwriter
competitive bidding.
product lines; and the balance to augment working cap-/; Probable bidders':
Halsey, Stuart & Co. Inc.; Stone &
itdl. Underwriter—Straus, Blosse.r & McDowell/Chicago,
Webster Securities Corp.; Kuhn, Loeb &
SO., Salomon
nr.:"-1 /
•
/.
Bros. & Hutzler and Wood, Struthers & Co.
.

<

■

•. Western

*. •."v;■ -;

:

.V:.*^

-w v■

,

■■■■.-/'-■:

(jointly)

<.

offered

for

subscription

at the rate of

held

& Co.

one

holders

by

share

new

V,

'

V

.

/

/

.

(

.

Central

Jan. 26 it

11, 1959: rights to expire on March 26. ;
Price—rTo
be
supplied by amendment.
Proceeds—To.,
increase capital and surplus.
Underwriters — Kidddr1,'
Pqabody & Co., New York; and Prescott, Wright, Snider

Co.',,|Kansas City, Mo.

(jointly).

Bids—Expected to be received

on April

of outstanding

for each five shares

March

on

/

Kidder, Peabody & Co., White, Weld & Co. and Shields

Casualty & Surety Co., (3X12)/-.;;/./ v'7

Feb,, 11 filed 100,000 shares of capital stock (par $5) to
be

Power & Light Co.

,

was

reported that the company plans to sell
$11,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lehman Bro¬
thers and Glore, Forgan & C*v
(jointly); Kidder, Peabody
& Co.; Merrill
Lyhch, Pierc^ Fenner .& Smith and Salo¬

-

mon Bros. & Hutzler
(jointly); Kuhn, Loeb & Co., A. C
Feb/20 filed 127,500 shares of class"A common* stdck,
of;' Allyn &
Co., Inc., and Bear; Stearns & Co. (jointly);
Whic^ 65,000 shares are to be offered for the account of
Eastman Dillon, Union Securities & Co.
Bids—Expected
sellihg stockholders- Price—To be.supplied
vam^rid-7; to be received sometime in April.
m'ent, Proceeds—To be applied to payment of outstand¬
Columbia Gas System, Inc. (4/1) ■
ing indebtedness of Marcus Breier Sons, Inc., assumed
Feb. 23 it was reported company
plans to offer to its
by the company upon liquidation of that corporation; to
common stockholders
1,799,057 additional shares of com¬
reimburse the company's treasury for cost of reacquiring
mon stock on a 1-for-15 basis.
Price—To be named on
5,951 common shares outstanding prior to a recent re¬
To repay
capitalization of such sharps into \ class/ A and class B; March 31. Proceeds
outstanding bank loans.
Underwriter—To be determined by competitive
stock; and the balance for general corporate, purposes. bidding.
Probable bidders: Lehman Brothers and Eastman Dil¬
Office
67 West Burnside St.,
Portland, Ore. KUnder- f
lon, Union Securities & Co. (jointly); Merrill
writer—Francis I. duPont &

ed in the latter part of
time in April.
:

Gulf Power Co.

—

.

Lynch,
Pierce, Fenner; & Smith,
/White Stores, Inc., Wichita Falls, Texas (3/1,0);/ Co. and R. W. Pressprich White, Weld & Co., Shields &
& Co. (jointly); Morgan Stan¬
Febf .18 filed $5,000,000 convertible subordinated deben-" ley & Co. Bids—Expected to be received up to 11 a.m.
tures, due March 1, 1979. Price — To be supplied by ' (EST) on April
1./ Registration—Planned for March 5.
Co., New York.

amendment.

Proceeds—For
—

Merrill

general

corporate

19

filed

•/V

*.•

purposes.

De Jur-Ansco

/.:/;/./7

together with

7*//';

details have not yet been worked out. Business—Manu¬
facturer and" distributor of
flight meters, cameras, etc.
/Underwriter—H. M. Byllesby & Co./ Inc.,

/7'7 7 ■»'/'

William Hilton Trusty
certificates, 9,000 shares
of class A common stock (non
voting), and 600 shares
ofi.Class B common stock (voting); to be offered in 600
units, each consisting of 10 certificates
($100 face
amount), 15 class A shares and 1 class B share. Price—
$1,160 per unit. Proceeds—Together with bank borrow¬
ings/will be used to purchase from the Sea Pines Plan¬
$600,000

of

tation Co.

a

trust

The

participation

tract of

approximately three acres': of ocean
Hilton Head Island, to construct the

front property on

Inn, purchase all furniture, fixtures and equipment

Chicago, 111.

★ Diamond State Telephone Co.
Feb.

tion.

The

ijccuiiig,

emu

800

of

shares

common

stock

nec¬

npr

debenture.

Proceeds

certain facilities.

To

—

develop

property

in

common

stock.

and

Feb. 9 it

Of these

construction

program.
Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Merrill Lynch, Pierce, Fenner &
Smith, Inc.; Stone & Webster Securities Corp.; Kidder,
Peabody & Co.; White, Weld & Cp. and Shields & Coy/

(jointly)
prich

Equitable

&

Co.

Securities

(jointly).

Corp. and R. W. Press¬

Bids—Expected

time in May.
9

20,000

to

received

be

.

Price—$4

shares

of

ceeds—For

construction

stock

plans the sale
(par $100).
Pro¬

Underwriter—To

program.

Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co. Office—319 E. "A" St., Casper, Wyo.
Under¬
writer—None.
:7. 7777
,7■"'///77-7/ V

&

Co.; Kidder, Peabody & Co., and White,
(jointly); Merrill Lynch, Pierce, Fenner &
Bids—Expected to be received some time in May.
Co.

El Paso Electric Co.
was reported that the
company is also planning
offering of common stock to common stockholders on

the basis of about

Proceeds—For

Florida

.

construction

Dealer-Manager
Corp., New York.

program.

Clapp, President, announced that the

poration is plannirig to sell additional shares of
stock

* AMP, Inc.

by competitive bidding. Probable bidders: ^
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner\*
Smith, Salomon Bros. & Hutzler and Drexel & Co./
(jointly); Eastman Dillon, Union Securities & Co.;,-

Equitable Securities Corp.; Kidder, Peabody & Co. and /
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra- *'
tion—Planned for March 6. Bids—Expected to be re- '
ceived on April 2.
★ Interstate Power Co.
March

it

2

Lehman Brothers

received

it was

2

Eastman Dillon, Union Securities & Co., Equitable
Securities Corp. and Drexel & Co. (jointly); Harriman

it

Jan. 30 it

,

reported that the company plans a com¬
offering. Business—Chain of grocery stores.
Underwriter—J. Barth & Co., Sari Francisco, Calif. Of¬
fering—Expected about middle of April. Registration—
Planned for April 1.
mon

.

was

stock

*

/

r

Bank of

Feb. 9 it

Southwest N.

was

announced

holders of record

Jan.

A.,

Houston, Texas

Bank "is

offering to its stock¬




certain

that

directors

are

major

Underwriter

shareholders.

—

Dittmar

&

Price—

Co., San

reported that the company is planning
sale of $4,000,000 preferred stock. Un¬

through negotiated sale. If de- *■'
by
competitive
bidding,
probable
bidders
Merrill Lynch, Pierce, Fenner & Smith
Inc., *
and Kidder, Peabody & Co.
(jointly); Lehman Brothers
and Blyth & Co., Inc.
(jointly); Smith, Barney 81 Co. *
be

Offering—Expected in May.

-

Jersey Central Power & Light Co.
Feb.

10 it was announced that the
company is contem-f
plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.;
White,2
Weld & Co.; Kidder, Peabody &
Co.; Salomon Bros. &Hutzler and Merrill
Lynch, Pierce, Fenner & Smith Inc, I
(jointly); Lehman Brothers and Blair & Co., Inc., (joint*;
ly). Offering—Expected during August.
-

/

Jubilee
Feb. 2 it

I

announced that the company plans the is¬
sale of $1,500,000 of convertible

suance

and

stock.

Proceeds—For

preferredv
expansion.
Office—1721 Broad-/
Underwriter—Not yet named.

New York, N. Y.

way,

»

Records

was

Dec. 29 it
and sell

City Power & Light Co.

was

reported that the company plans to issue-

$20,000,000 of first mortgage bonds. Proceeds—

For

construction program.
Underwriter—To be deter-/
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston

Corp. and Blyth &
Corp.; White,
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and
Bear,
Stearns & Co. (jointly). Offering—Expected in
May or

Co.,

Inc.

(jointly);

Equitable

Securities

Weld & Co. and-Shields & Co.

Mississippi Power Co.
10 it was Announced

was

announced that company

issue and sell

construction

(9/10)

(jointly); Harriman Ripley & Co. Inc.
Aug. 14. Bids—Expected to

Registration—Planned for
be received on Sept. 10.
Greater All American
Feb.

Markets

16 it was announced that the
company is planning
offering of $1,000,000 to $1,500,000 of common stock.
For expansion program. Underwriter — J.
Barth & Co., San
Francisco, Calif. Registration—Expect¬
an

this

_

,

company

plans

,

to

construction

program.
Underwriter—To:
competitive bidding. Probable bid-"
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union?
Securities & Co. and Equitable Securities
Corp. (joint-*
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,15
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬

determined

by

ders:

ceived

June 25.

on

Natural Gas Pipeline Co. of America
Feb. 25 it was announced
company plans to issue and sell;;
of first mortgage bonds later in 1959 to
pay off:
$25,000,000 of bank loans incurred in connection with its /
construction program.
issue

Underwriters—Dillon, Read &J
Inc., both of New

Co., Inc., and Halsey, Stuart & Co.
York.

//:•;/•/•.••. ■

★ Norfolk & Western Ry.
bids

reported

was

sometime

$7,350,000

of

in

'I

),*

that the company plans to re-r
April for the purchase from it/

equipment trust

Halsey, Stuart

North American
Dec.

&

Co.

<

Probable2

certificates.

Inc.;

Salomon

Bros.

&-

1 it

Equitable Life Assurance Co.

that the company plans an of¬
fering of 950,000 shares of capital stock. Price — $10 per
share. Proceeds—To increase capital and surplus.
Un-;

announced

was

derwriter—John M. Tait & Associates, Cincinnati,

1959

12

it

Illinois

was

Gas

reported

Obio.^

Co.

that

J

the company will sell

*

to

about $35,000,000 of new securities,

first mortgage
of

including some:
bonds; in addition, there is a possibility-

preferred stock issue.
Proceeds—For capital ex-,
penditures. Underwriter—To be determined -by com-2
petitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; The First Boston Corp.; Glore, Forgan & Co.;?
Blyth & Co.j, Inc.
/
"
••
?
a

-

.

program.

by competitive

Securities & Co.

that

$5,000,000 of 30-year first mortgage bonds..

Proceeds—For

be

Dec.

(formerly F & R

Underwriter—To be
bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
body & Co. and Shields & Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union

determined

(6/25)

Dec.

Northern

was announced that the company
plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬

Proceeds

'

;

r

con¬

Dec. 10 it

I

/

•

Hutzler.

Dallas, Tex.

Georgia Power Co.

20,

1959,. a total of 62,500 addi¬
tional shares of capital stock (par
$20) on the basis of
one new share for each 10
shares held; rights to expire
on March
17, 1959. Price—$40 per share. Proceeds—To
increase capital and surplus.

by

market.

and

ceeds—For

Calif.

shares

been determined.

Boston Corp. Regis¬
Bids—Expected to be re¬

Downey,

announced

was

offering

and sell

Markets,

12

is considering some additional financ¬
ing, but, types of securities to be offered have not as yet

April 30.

American

share for each

new

Machine Works)

Peabody & Co. (jointly); The First

All

one

FXR, Inc., Woodside, N. Y.

ers;

Bids—Expected to be

,

equity financing

bidders:

Feb. 2 it

•

J

termined
may

of

to

*

derwriter—Kidder, Peabody & Co., New York, handled
last,

ceive

Antonio

Ripjey & Co., Inc. and Goldman, Sachs & Co. (jointly);
Morgan Stanley & Co.; Blyth & Co., Inc. apd Kidder,

on

of

expenditures. Under¬
Kidder, Peabody & Co. and Merrill Lynch,
Fenner & Smith Inc.
Offering—Expected in

Related

—

company

* Interstate Power Co.
March

March 2 it

posed

writer—To be determined by competitive bidding. Prob¬
able, bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬

tration—Planned for April 3.

basis

sidering the offering and sale of a number of shares
of proposed new common stock
(par $2.50); such offer¬
ing, if made will be made in conjunction with a pro¬

-

(jointly).
May.

time in

some

the issuance and

ir Frito Co.

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¬

ceived

the

20

the

Pierce, Fenner & Smith Inc.; Kidder,-Peabody & Co.;

and

June.

Registration—Planned for March 6.

(4/30)

cor¬

common

Proceeds—For construction

Feb.

that

plans to
$6,000,000 of first mortgage bonds. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.
and Salomon Bros. & Hhtzler
(jointly); Merrill Lynch,

Pierce,

March 2 it was reported that the company plans early
registration of 120,000 shares Of common stock. Proceeds
~tTo selling stockholders Underwriters — Kidder, Peabody & Co. and Blyth & Co., Inc., both of New York.

/,"/ ■'

•

reported

was

issue and sell

writers—

(4/1)

Alabama Power Co.

on

held.

Prospective Offerings

,

be-

&

share for each 25 shares held.

new

Power Corp.

Feb. 4, W. J.

J

one

—Stone & Webster Securities

■"

k

A

be

Feb. 9 it
an

Underwriter—To

program.

7

June.

by competitive bidding./Probable bidders;
Dillon, Union Securities & Co.; Salomon Bros.

Weld &

*

determined

company

preferred

construction

Hutzler

Smith.

!

(4/2)

Electric Co.

it was reported that the

Eastman
&

tion to Great Plains

-

was

some¬

was announced that the
company plans to issue
$7,000,000 of 30-year first mortgage bonds. Pro-

Kansas

determined

Proceeds—$300,000 will be used for payments
on contract to purchase shares of
International. Fidelity/
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for
capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬

.

by competitive
Stuart & Co. Inc.;

bidders: Halsey,
Corp.; Morgan Stanley & Co.; White,
Bids—Expected to be received on or about

ceeds—For

share.

""A

determined

Boston

ceeds—For

of

scriptions at $2, $3.33 and $4 per share; and the addi
fional 250,000 shares are to be offered initially to share¬
1, 1958, in' the ratio of one nev
that /date.

to

reported that the company is planning the
sale of $3,500,000 of first
mortgage bonds due 1989. Pro¬

Feb.

holders of record Nov.

on

be

Probable

First

some

to partially completed sub¬

share for each 2.33 shares held

plans

company

El Paso Electric Co.

,

(par

Wyoming Corp.

per

Underwriter—To

El Paso

shares 1,199,307 are subject

(4/21)

this

determined

Underwriter—None.

Nov/17 filed 1,449,307 shares of

that

April 21.

525):> to be offered to members of this' club and of
Concord Ltd. Price—$375 per common share arid $1,000
build

announced

was

Weld & Co.

for gome $20,000 of costs advanced by. it. Underwriter--;
The Johnson, Lane, Space Corp.,
Savannah, Ga. '

.tii-M

it

bidding.

[

operate the Inn and to provide necessary
working capital (and to reimburse Sea Pines Plantation

Wilmington Country Club, Wilmington, Del.
Oct. 27 filed $500,000 of debentures due '1991 (non

27

issue and sell $5,000,000 of
35-year debentures. Proceeds
-—Principally to replace borrowings for new construc¬

to

essary

Corp., New York City

Jan. 27 it was reported that the
company is planning the
sale of convertible debentures and common
stock, but

: ■•••«■

William Hilton Inn Co.

Jan.

'

Lynch, Pierce, Fenner & Smith,

Inc., New York.
.

r

March. Offering—Expected
/

Dec. 10 it
and sell

—

Underwriter

43

■■

.

conVertible preferred stock (par $17.50). Price—To be
supplied by amendment. Proceeds
To reimburse the
treasury

*t

Northern
Dec.

States

Power Co.

(Minn.)

3, Allen S. King, President, announced that the
plans about the middle of 1959 to put out a,

company
common

stock issue and possibly a $15,000,000

stock issue if there is

a

satisfactory market.

preferred;

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- and Riter & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith; Harriman Ripley & Co., Inc. and East¬

ers

man

Dillon,

Union

Securities

&

Co.

(jointly);

Kuhn,

—

Continued

on

page

44

44

The Commercial and Financial

(1120)

Continued from page
Loeb

Co.

&

convertible preferred stock
& Co., Inc., Philadelphia,
Pa.
Registration—Planned for today (March 5). Offer¬
ing—Expected some time in March.
ably to take the form of

43

For common stock: Lehman Brothers

(2)

(jointly); The First Boston Corp., Blyth
& Co. (jointly); White, Weld
Co. (jointly); Merrill Lynch.
Pierce, Fenner & Smith.

and Riter & Co.

& Co., Inc. and Kuhn, Loeb
& Co. and Glore, Forgan &

Our River

Dec. 22 it

Electric

•

Ryder System, Inc. (3/9-13)
fan. 12 it was reported that the company plans the issu¬
ance and sale of 150,000 shares of common stock (par $5).
Proceeds—For acquisitions.
Underwriter—Blyth & Co.,

Co., Luxemburg

reported that this company plans to offer

was

$10,000,000

of bonds. Underwriters—The First
Corp. and Kuhn, Loeb & Co., both of New York.

Inc., New York.

Boston

(5/28)
plans to issue
mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody
& Co. and White, Weld & Co. (jointly). RegistrationPlanned for April 17. Bids—Expected to be received on
Southern

and

Corp.
Jan. 28, Alfons Landa, President, said the company may
offer its stockholders $7,000,000 additional capital stock
through subscription rights. Purpose—To acquire Fair¬
banks, Morse & Co. common stock. Underwriter—Bear,
Stearns & Co., New York.
Pennsylvania Electric Co.
the

was

of

sale

announced that the company is planning

$15,000,000

—

it

23

Erie RR.

Jan. 30 it

26

able

reported

that

this

company

Feb.
of

(6/2)

reported that the company plans sale of

Underwriter—To

be determined by competitive bidding. Probable bidders:

and for additional

Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn
Loeb & Co. and Lehman Brothers
(jointly); Morgan
Stanley & Co. and Drexel & Co. (jointly). Bids—Ten¬
tatively expected to be received on June 2.

Becker

was

it

Bids—Expected to be received on June 2.
★ Washington Gas Light Co.

V *
plans to
issue and sell $12,000,000 of first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
it

2

was

the second quarter

Bank

reported that in connection with the pro¬

of

Baker, Ore, that the Bank plans to issue an
additional 23,000 shares of common stock on the basis
of one new share for each 49 shares held. Price—$50 per
share. Proceeds—To increase capital and surplus.
Virginia Electric & Power Co.

reported that the company plans early
registration of an undetermined amount of stock, prob¬

Feb.

was

it

21

offer

was

announced

additional

an

Dec. 29

it

buyers are biding
placing orders for
recent new corporate bond offer¬
ings. Apparently they see no rea¬
son for rushing and. quite the re¬
verse, appear to feel that
they
may
encounter opportunities by
waiting.
The

in

recent

Illinois

Bell

Tele¬

phone Co. issue of $50 million of
first

mortgage bonds afford

barometer of
The

section of the
Investment market apparently has
not
yet
reached
the
point at
which prospective buyers feel in¬
clined to turn to the corporate
new

secondary

issue market in force.

But

there is no gainsaying the
Cact that, along with the Treasury
market, the corporate gilt-edge

list

has

been putting on a good
Despite periodic relapses
the corporate high grade list lias
been giving evidence of good un¬

lihow.

derlying demand.
In

a

the response

good

which

has attended recent emissions.
the

At

outset

there

was

a

smattering of interest in this big
offering.
But then things sim¬
mered

down

there

and

has

not

been any subsequent tendency to
"catch fire," as the saying goes.

But observers

eyeing this one
realizing that it. could

closely,
touch

things

really

are

off

if

it

starts

to

word,
been showing

buyers have not
any disposition to
"reach" for their needs. But they
have
been
taking
down
good
bonds when the opportunity to
pick up given issues "at a price"

move.

Little More Activity

approaching week promises
to stir up a bit more in the way
of activity than has been the or¬
der of the day recently in the new
capital market. Several debt is¬
sues,

of

none

tions,

unwieldy

however,

are

on

that

issue and sale of about $15*000,000 of

cal¬

endar.

To some extent this
backlog of
buying could reflect the growing

Indiana

Public

disposition

million

of

day bankers are slated
$5 million of debentures

on

the

part

inves¬

of

tors to shy away from the soaring
market where yields have

The

Mock

to

been

for

sidetracked,

it

would

ap¬

pear, in search for capital gains.
At

the

same

time

it

still

looks

though demand which usually
makes its appearance in
January

as

but which

appears

to

have

been

held in abeyance this
year, now is
making itself felt in quiet, orderly
accumulation of top-grade issues.
no headlong
borrowing at the banks
by business. Rather, if it had not

of

been

for

the

demand

to

finance

bonds

Northern
Co.'s
for

$25
bids.

following day the week's
undertaking, $33 million

bonds

of

Colorado

Interstate

Gas Co. is due up for bonds, along

with

$12 million
of the
same
firm's preferred stock. Equitable
Gas

Co.

has

$6 million preferred
going to market.

Moreover, there is

rush

up
Service

White Stores Inc.

The
of

brings

same

offer

largest

And for

a

wrap-up

of the week's

corporate offerings, Royal Dutch
Airlines (K.L.M.) will be selling
$17 million of debentures through

building of steel inventories, such bankers.
loans, in recent weeks, would
have been off
than

was

while

considerably

actually the

money

rates

case.

are

than several months ago,
no

indication

markup.

of

any

-




H. C.

more

,

Wisconsin
Jan. 12 it

was

company

plans

common

stock

Power &

to
to

Wainwright Adds

(4/15)

the sale of

$14,000,000 first mortgage bonds. Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Smith, Barney & Co.
and Robert W. Baird & Co. (jointly); Equitable Securi¬
ties Corp. and Eastman Dillon, Union Securities & Co.
(jointly); White, Weld & Co., Kidder, Peabody & Co.
and Salomon Bros. & Hutzler (jointly); The First Boston
Corp. Bids—Expected to be received on April 15. Regis¬

—To

determined

be

tration—Planned for March 9.

V.1

Worcester Gas Light Co.
was

/

reported that the

plans the sale

company

$5,000,000 first mortgage bonds.

Proceeds—For con¬
Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook & Co.
and Coffin & Burr., Inc.
(jointly); Kidder, Peabody & Co. and White, Weld A,
Co. (jointly).
W:

★ Worth
Feb.

13

sale

Fund,

it

was

Inc.
that the Fund was planning
$5,000,000 of common stock.
Under¬

reported

of about

writers—Blair & Co. Inc. and G. H. Walker & Co., both
of New York.
Offering—Indefinitely postponed.

Step in the
Right Direction!

"America at this very moment

is engaged in a
great debate on the role of government in the lives
of her citizens. A part of this debate revolves around
the question, Shall government live within its
means, shall our citizens, in a
prosperous time,
the service they

Light Co.

reported that the company contemplates

Romanoff Co.

Joins S.

(Special to The Financial Chronicle)

WORCESTER, Mass.—Sophie A.
has joined the staff of

Kolodziek

Romanoff

S.

Street.

She

&
was

Co., 340 Main
formerly with

H. L. Robbins & Co.,

Inc.

With Merrill Lynch
(Special to Tire Financial Chronicle)-"

MINNEAPOLIS, Minn.

Lester
Lynch,

—

F. McCabe is with Merrill

meet the cost of

Pierce, Fenner & Smith Incorpo¬
rated, Hand Tower.

desire of their

.

Government?
"Or is it to be

established

our

(Special, to The Financial Chronicle)

ST. PAUL, Minn. — Charles H.;
O'Malley has been added to the
staff

of

Pioneer

enterprise are destroyed. This
route, I remind you, is one that
would
surely torpedo all the

one

us

want

a

healthy, free

Eisenhower

KANSAS

Joins Barret,
KANSAS CITY,

goal of fiscal soundness
throughout America. To this end, none of us should
add to the burdens of the general citizenry by
insisting upon a favored position." — President
Eisenhower to the National Rural Electric Coopera¬

Fitch

has

become

Mo.—Frank O.
affiliated with

Barret, Fitch, North & Co. Incor¬
porated, 1006 Baltimore Avenue,
members

of

the

New

York

and

Midwest Stock Exchanges.

B. C.

to make the kind of contribution all of us must make

toward

CITY, Mo. —Herbert

(Special to The Financial Chronicle)

Shite

currency.

and most of
your organizations are equally dedicated to these
principles. Moreover, now that your systems have
arrived at a state of maturity, I am sure you want
citizens

Co..

&

Co., 1000 Baltimore Avenue.
economy,

"I believe further that most of you

as

Smith

M. Gershon is now with Bache &

produce growth in terms of real goods,
services, real wages. Surely none of us favors
our

L.

(Special to The Financial Chronicle)

Pres.

that will

actions that tend to debase

Robert

Building.

Now With Bache & Co.

great achievements of your or¬
ganizations in the past quarter century.
"I believe all of

Smith Co. Adds

R. L

policy to follow the ruinous route
of free republics of the ages past,
the route of deficit financing, of
inflation, of taxes ever rising,

Christopher Adds

(Special to Tiie Financial chronicle)

a

KANSAS
L.

White

is

CITY, Mo.
now

—

Bartlett

affiliated

with

Christopher & Co., Board of
Building, members of the
New York Stock Exchange.
*
B. C.

Trade

tive Association.

Joins A.
Excellent generalizations, but it all led up only to
the announcement of

a

decision to require certain

Ferman Branch in NYC

Wayne Hough

(Special to Tire Financial Chronicle)

PASADENA, Calif.—John R,
has joined the staff of
A. Wayne Houjgi & Co., Security
Building.
»•

Waddell & Reed Branch

,

York and Boston Stock Exchanges. M. Richards.

V

Hulihan

BOSTON, Mass. — Richard I.
Robert L. Ferman & Company
SAN FRANCISCO, Cal.—WadLandy has been added to the staff has opened a branch office at 550 dell & Reed, Inc., has opened a
there is
of H. C.
Wainwright & Co., ^60 Fifth Avenue, New York City branch office at 111 Sutter Street
sharp State
Street, members of the New under the management of Richard under the management of H. H.
firmer

first mortgage bonds.

and Eastman Dillon, Union Securities & Co.
(jointly); The First Boston Corp. and Harriman Ripley
(jointly); Kidder, Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be received
on May 26.
,1 ' / -r

borrowers to pay the going rate of interest!

(Special to Tire Financial Chronicle)

So,

A Small

real

new

j

& Co. Inc.

the

(6/2)

the

710,000 shares of

propor¬

the

presents itself.

Tuesday

>

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman

until all initiative and self-reliant

The

a

(5/26)

reported the company contemplates the

was

Taking Their Time
Institutional

time

company

of 1959.

West Penn Power Co.

struction program.

posed merger between this Bank and the First National

announced company

their

the

that

reported

was

able bidders: Halsey, Stuart & Co. Inc.; Kidder^ Pea¬
body & Co.; Eastman Dillon, Union Securities & Co.;
Equitable Securities Corp.
Offering—Expected during

of

United States National Bank, Portland, Ore.

Ritter Finance Co.
9

& Webster Securities Corp.

Fenner & Smith, Inc.; Stone

Aug. 18 it

Feb. 16 it

plans to issue and sell
$10,000,000 preferred stock this Spring. Proceeds—For
construction program.
Underwriter —May be Merrill
Lynch, Pierce, Fenner & Smith, Inc., New York.
Feb.

shares then held.

program.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders: Merrill Lynch, Pierce,

working capital. Underwriter—A. G.
Co., Inc., Chicago, 111. Offering—Expected in

&

April.

Puget Sound Power & Light Co.
Feb. 6 it

stockholders of record on

1959, on the basis of one new share for
Proceeds — For construction

about June 2,

each 20

bidders:

was

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

Inc.; Salomon Bros. & Hutzler.

was

it

Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Smith Inc. and Eastman Dillon, Union
Securities & Co. (jointly); Equitable Securities Corp.;
Lehman Brothers; Kuhn, Loeb & Co.; Blyth & Co. Inc.
Bids—Expected to be received in April or May.

(4/7)

$30,000,000 to $40,000,000 debentures.

30-year first

(formerly
Southwestern Gas & Electric Co.) plans the issuance and
sale of about $16,000,000 of first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬

reported the company plans to receive
bids on April 7 for the purchase from it of $2,475,000 of
equipment trust certificates. Probable bidders: Halsey,
Public Service Electric & Gas Co.

of

Southwestern Electric Power Co.

Jan.

was

Stuart & Co.

$25,000,000

or

Thursday, March 5, 1959

.

.

Brothers

To be determined

Pittsburgh & Lake
Feb.

sell

May 28.

of first mortgage bonds.
Un¬
by competitive bidding.
Probable bidders: Halsey', Stuart & Co. Inc.; Equitable
Securities Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co., Merrill Lnych, Pierce, Fenner
& Smith Inc. and White, Weld & Co. (jointly); The First
Boston Corp. and Harriman Ripley & Co. Inc. (jointly).
Offering—Expected about mid-year.
derwriter

Electric Generating Co.

.

be offered for subscription by

March

Offering—Expected any day.

Dec. 10 it was announced that the company

Penn-Texas

Feb. 10 it

a

Underwriter—Stroud

issue.

Chronicle

Sender.

.

With Paine, Webber
LOS

ANGELES, Calif.—George
added-to the
of Paine, Webber, Jackson &

A. Briggs has been
staff

Curtisri>26 Soitth-Spring Street.

Volume 189

Number 5826

.

.

The Commercial and Financial Chronicle

.

(1121)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN
Indicated

Steel

operations

cent capacity)

(per

Equivalent to—
Steel ingots and castings

Week

Mar.

§89.5

month available.

month ended

or

Previous

Week

IRON AND STEEL INSTITUTE:

or

Month

\

tons)

(net

Mar.

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily
42 gallons each)
Crude runs to
stills—daily

average

(bbls.

52.8

Feb. 20

Residual

fuel

27,768,000

■Feb. 20

2,784,000

2,952,000

(bbls.).
(bbls.).

output

oil

117,987,000

.Feb. 20

output

Feb. 20

2.288,000

7,193,535
8,311,000

fv

~

15,009,000

Feb. 20

Vh y,.

7,162,000

7,354,000

7,779,000

200,120,000

192,883,000

19,648,000

19,953,000'
88,255,000

21,388,000

v-Jfi-rResidual fuel

•

ASSOCIATION

—Feb. 20

55,530,000

—Feb. 21

583,181

Revenue freight received from connections (no. of cars)—Feb.

CIVIL

'

CONSTRUCTION

ENGINEERING

NEWS-RECORD: ■>■>"
U. S. construction

Private

—

y;.-;

'

176,172,000

211,894,000
186,439,000

85,211,000

138,189,000

125,952,000

24,277,000

48,250,000

60,858,000

—Feb.

8.055,000

*8,175,000

—Feb.

390,000

366,000

=

Feb.

Finished

(per gross ton)

J. QUOTATIONS):

t';
J

Aluminum

tin

Straits

-

'

296

310

322

Sewer

6.196c

6.196c

$43.17

6.196c

$66.41

$66;49

$42.50

$37.33

$43.83

;;

-Feb;

25

29.6750-'

29.650c

28.625c

24.100c

Feb.
Feb.

—

25

29.300c

28.800c

28.075c

19.800c

25

11.000c

1

-

11.500c

12.000c

13.000c

New

10.800c

11.300c

11.800c

12.800c

Middle

12.000c

12.000c

10.500c

South

25

11.000c

10.000c

25

24.700c

24.700c

24.700c

26.000c

25

104.750c

102.750c

99.625c

95.000c

Ma^

86.63

86.29

85.54

94.56

3

Mar

90.20

90.06

89.64

a

94.41

Baa

3

—

Industrials

/'

YIELD

BOND

MOODY'S

-

Group

East

South

93.67

102.46

92.20

99.84

New

89.64

95.62

Outside

83.66

83.53

86.78

3

89.09

89.23

88.13

91.77

3

89.78

89.64

89.37

3

91.77

j 97.62

91.34

91.62

1

98.41

AVERAGES:
3.76

Mar
Mar
Mar

4.11
4.21

3.80

•

2.96

4.41

4.44

Total

4.16

3.60

4.22

4.26

Retail

3.76

Commercial
Total

4.03

Wholesale

4.65

Retail

4.48

4.47

4.55

4.29

4.43

4.44

4.46

3.90

Commercial

4.30

4.32

382.5

384.3

397.1

297,549

Feb.

289,084

289,474

230,020

310,348

292,534

272,590

304,774

Feb.

94

94

91

89

400,485

409,012

378,182

330,479

114.72

110.70

111.41

109.33

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

100

Feb. 27

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
.:<
Total purchases
Feb.

7

2,230,050

2,770,520
409,290

3,033,910
485,450

1.485,200

2,365,440

2,695,430

1,227,380
1.551,690

324,310

7

1,961,170
2,308,170

2,774,730

3,180,880

purchases

Feb.

7

501,830

542,440

sales

380,420

Feb.

7

56,400

44,600

549,150
43,000

■—-Feb.

7

430,690

524,180

538,910

390,820

———Feb.

7

487,090

568,780

581,910

434,820

sales

Other

Total
Other

347,000

Initiated on the floor—

———

——

sales

^

sales

^'

729,705

44,000

All

Nondurable

AREAS

2,407,597
512,070
2,251,072
2,763,142

-Feb.

7

2,019,354

7

$87,528,880

$102,617,671

2,456,705
$131,390,700

7

1,549,251

1,715,674

1,965,142

1,336,171

$57,892,492
1,013,055

7

7,604

7,136

8,707

20,961

7

1,541,647

1,708,538

1,956,435

992,094

-Feb.

7

$76,215,124

$86,131,861

$10^,409,733

$45,785,039

-Fell

7

410,740

466,120

494,9G0

253,770

-Feb.

7

-Feb.

—

shares—Total sales.

sales

Other sales

7

410,740

466,120

494,960

7

640,390

744,010

936,740

582,190

Nov.

2.35

2.24

1.92

$931,797

LOAN

(000'

$1,086,452

$686,033

128,249
474,026

150,420
558,260

117,362
333,134

154,097
272,492

175,104

117,387
271,032

BANK

omitted):

associations
—

—.—.™-

—

institutions

deductions

after

—™

from

income

fixed

for

fixed

charges
charges

—

deductions

income

Net

471,376

323,500
562,783

$2,856,519

$1,877,176

$80,186,629
24,326,454
104,513,083
5,481,389
99,031,694
67,265,749
4,177,204

$114,687,956

$64,247,324

22,718,782

21,400,635

137,406,738
4,440,555
132,966,183

85,647,959
4,894,486

-Feb
Feb.

640,590

697,830

783,230

903,330

7

16,807,450

19,323,890

21,003,020

11,922,930

7

17.448,040

20,021,720

21,786,250

12,826,260

U. S. DEPT. OF

63,088,545

101,028,769
4,258,075
96,770,694

80,753,473
49.731,704

4,164,474
45,567,230

Depreciation (way & structure & equipment)

50,028,809

23,634,972

50,140,017
48,230,882

49,002,976
10,190,345

64,979,989
6,563,992

21,001,435
1,35G,424

68,957,240

3.12

4.16

2.60

$14,138,000

$43,663,500

$10,591,100

$288,000,000

$288,000,000

$275,000,000

285,801,183

282,922,423

274,554,825

income

Dividend

taxes

appropriations:

common

On

preferred stock
of

stock

income

RECT

to

fixed

charges

AND

TRANSACTIONS

GUARANTEED

U. S. A.—Month of

purchases

—As

Total
at

IN

4,899,731

DI¬

SECURITIES

January:

face

31

amount

(000's
that

omitted):
may

—

be outstanding

time

public debt
Guaranteed obligations not

.

;

:

-

STATUTORY DEBT LIMITATION

of Jan.

any

Total

other than farm and foods.

-Feb. 24

119.1

119.4

119.5

gross

owned

the

by

119.2

-Feb. 24

89.9

91.0

91.9

107.2

107.8

109.0

109.7

98.2

100.1

102.8

103.7

-Feb, 24

127.6

127.6

127.4

125.8

105,713

* "

108,777

100,964

$285,906,727

$283,031,201

$274,655,790

423,058

424,227

436,358

$285,483,669

$282,606,973

$274,219 431

$3,393,026

$780,568

97.3

-Feb. 24

1, 1959;-as




•

Outstanding—

-Feb. 24

one-half-cent a pound.

352,228

Federal

U. S. GOVT.
7

^Includes 939,000 barrels of foreign crude runs, §Based on new annual capacity of 147,633,670 tons
against Jan. 1, 1958 basis of 140,742,570 tons. tNumber of orders not reported since introduction of
.Monthly Investment Plan. ^fPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
of Jan.

38.3

*1.97

Total gross public debt and guaranteed

obligations
outstanding public debt obli¬
gations not subject to debt limitation

Deduct—other

•Revised figure.

as

38.9

NONFARM

——

available

Income

OF

-Feb.

Meats

All commodities

HOME

—

of

IN

income

Income

Net

OF MEMBERS (SHARES):

—

;
-

S

—

Short sales.
Other sales.
Total sales —

:

S.

TREASURY MARKET

PRICES, NEW SERIES
-LABOR — (1847-49 = 100):
Commodity GroupAll commodities
Farm products.
Processed foods

$2.11

253,770

Total round-lot sales—

WHOLESALE

$2.19

1.98

On

K

FOR ACCOUNT

39.6

$2.19

railway operating income

Ratio

dealers-Feb.

38.7

*40.8

39.4

S. CLASS I
(Interstate Commerce Commission)—

RYS.

Other

Round-lot sales by dealers—

i

73.54

*40.3

.

lending

Miscellaneous

1,786,795

-'<Yb

—

87.14

78.01

39.9

Total income

-Feb.

—• —

$81.66

*95.88

SELECTED INCOME ITEMS OF U.

Net

-Feb.

other sales

—

*$88.26

78.01

9,868,000

3,364,000

$2,432,037

Other

-Feb.

—-—-—

Customers' short sales

—

$64,442,000

5,505,000
20,788,000

Month of November:

(customers' purchases)—t

shares

mm-u

$57,069,000

2.34

loan

Miscellaneous

4,929,550

ill* m*

$24,917,000

OF

-

Individuals

3,853,866

1», aotanav va u

$18,411,000
10,613,000
14,397,000
10,058,000
3,590,000

94.30

DEPT.

companies™savings banks

776,632

4.414,506

R®und-lot purchases by
Number of shares

1,279

$73,564,000

■

trust

and

632,872

3.700,652

Number of

78

1,082

8,274,000

1

3,185,832

1. Short

176

88

$87.38

liabilities

companies

1,166,760

-Feb.

Odd-lot purchases by dealers (customers sales)—
Number of orders—Customers' total sales

^

676

176

219

40.3

U.

and

1,029,020

*

J

130

515

33,197,000

._1.,

—

BOARD—Month

Savings

964,226

■TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK
V
EXCHANGE — SECURITIES EXCHANGE COMMISSION:

rf ,

.118

0,472,000

HI™

™v,„™

FINANCING

OF

1,070,996

-Feb.

Dollar value

185

132

6,559,000

I™™™.,
liabilities -_™

goods

ESTATE

REAL

905,392

666,190
4,263,360

sales

67,583,851

370,747,717

96

■;

goods

793,972

4,476,910

Customers'

$438,331,568

$17,062,000

!

number™

manufacturing

Mutual

560,660

—

$458,900,150
63,175,489
395,724,661

188

u

goods

Duralrle

143,760

4.083,630

value

17,963,027
96,913,026

1,273

;

Nondurable goods
Hourly earnings—.

137,740

514,820

Dollar

16,552,056

21,729,774
92,459,955

642

manufacturing

106,770

3,461,585

of

30,070,347

215
„™„™™;™

Durable goods
Nondurable goods

Banks

-Feb.

Number

75,262,050

85,686,691

BRADSTREET,

Weekly earnings—
All
manufacturing.

541,977

Other sales

4

105,917,664
46,375,698
59,189,999

410,124,285

„

ESTIMATE —U. S.
LABOR—Month of January:

893,850

-Feb.

purchases

Odd-lot sales by dealers

66,557,800

77,999,456

City

service

111,420

Feb.

——

.
.

•

$20,158,048

99,014,972
41,138,354

$488,123,741

States

AVERAGE

770,670

Short sales
Total

$22,241,857

22,430,318
130,278,657

...

liabilities

Insurance
7

round-lot transactions for account of members—

Total

t".\

89,602,689

,™

liabilities

7

Total

•"8

49,128,489

number

7

Total

65

x15

.

transactions initiated off the floor—

27

15

$16,844,120
111,253,673
40,533,360

liabilities

Durable

7

Short

•:<

74

gift CITIES—Month

™_'

liabilities

Total

All

7

Total

40

30

Hours—

ROUND-LOT

Other*transactions

40

FACTORY EARNINGS AND HOURS—WEEKLY

—Feb.

—

87

69

•

&

3.85

4.29
383.2

V

.—Feb.

=

09
59

28,052,435

York

Construction

ASSOCIATION:

(tons)

—

DUN

—

™™_„™__™

Manufacturers'

4.44
4.90

Mar.

Percentage of activity
Unfilled orders (tons) at end of period

AVERAGE

109

?

66

:

;,V,

;

number

4.41

received (tons)

1949

230

29

™_

™™_™™™™_.™™™_..

service

4.89

-Mar.

33

350

40

i

number

4.39

MOODY'S COMMODITY INDEX

Production

VALUATION

Manufacturing number
Wholesale number

4.88

•

31

33

67

BUSINESS FAILURES—DUN &

Mar.

Group
Public Utilities Group
Industrials Group

,*

41

110

107

22

™™™.

City

New

„Mar.

Railroad

*

25

105

'

__.,.™

United

York

Mar.

Orders

32

33.;

systems

™_„„™

_Mar.

NATIONAL PAPERBOARD

29

225

4.01

4.13

4.40

3.88

343

28

42

™™._™„™..™,

Construction

Mar.

T

361

227

30

*

™;

92.79

83.79

12

59

:•

223

build ingsIIIII™

enterprises

PERMIT

Pacific

90.06

3

'

918
•

28

22-7.2

Central

94.12

Aaa

3

356

■/. v.

service

Central

West

92.93

U. S. Government Bonds
Average corporate

•/;.

1G

88

._.

Central

90.34

,

25
74

286

1,137

2_2

institutional

water

Atlantic

3

DAILY

19
66

359

285

Atlantic

3

.

in

Railroad Group
Public Utilities Group

100
385

95.92

-

15

100
444

1,054

222222222
2222

England

Mar
'.i————————————.——————"
Mar
—.—-—
—
Mar
——Mar
Mar

-

—inn iii—inii—1~—~—

25
-

91

facilities

service

Mountain
3

25

of4 December:

11.500c

11.500c

43
51

.

39

14

;

BRADSTREET, INC.

25

11.500c

49

.

98

___222222

nonresidential

68

50

;

68

Conservation and development
Ali other
public™™™

25

^

————

'V;

398

buildings
buildings

and

Public

78
.v.'?.

23

and

270

307

Water

5.967c

$66.41

$66.41

Mar

Aaa

2

telegraph

Hospital and
Administrative

331

202

73

public utilities™™
private

Military

241

47

___

Industrial

11,803,000

103

16

construction

BUILDING

corporate

Average

13,151,000

167

142

219

;

305

163

115

35

Educational

88

274

268

recreational

and

746

176

48

Nonresidential

427,000

,

U. S. Government Bonds

ti>-

other

Public

6,790,000

PRICES DAILY AVERAGES:

MOODY'S BOND

Other

50

722

i

173

buildings™

„™.

220
.

.

utilities

,

895

57

660

;

———

at___—

13,259,000

288

Highways

Feb.
———'-Feb.
St. Louis) at
Feb.
(primary pig. 99.5',o) at——u._——
•
Feb.
(New York) at
Feb.

Zinc delivered)
Zinc ^East

*

at

refinery

233

153

construction

Telephone
All

132,177,000
44,250,000

105

1,260

Railroad

Other

DUN A
-Feb.

/

'

Export refinery atLead (New York) at
Lead (St. Louis) at

„t,

—

Feb.
——————Feb.
Feb.

(per gross ton)

Domestic

V-

111

1,165

1,145

garages

.

and

Sewer

COMPOSITE PRICES:
steel (per lb.)

Pig iron

*.

$304,665,000
128,238,000
176,427,000

8,005,000
442,000

2,408

1,605

Miscellaneous

.

;
INDUSTRIAL)

AND

—

METAL PRICES (E. & M.
i
Electrolytic copper—

12,972,000

100

INSTITUTE:

BRADSTREET, INC.

Scrap steel

482,610

,.

109

-Feb.

AVERAGE

(COMMERCIAL

AGE

Social

RESERVE

STORE SALES INDEX—FEDERAL

EDISON ELECTRIC

IRON

186,810,000

nonresidential

Residential

H Electric output (in 000 kwh.)
"

i

$3,326

2,887

Hospital and institutional

494,919

S. BUREAU OF MINES):

(U.

SYSTEM—1941-49

FAILURES

$418,223,000
231,413,000

$4,024

1,433

222222222222222

restaurants, and

Educational

;

Faun

$398,333,000

109,488,000

Pennsylvania anthracite (tons)

')

,

543,395

Feb.

municipal—

■\ Bituminous coal and lignite (tons)
i

555,121

—Feb.

DEPARTMENT

55,435,000

555,547
524,800

Ago

55

Religious

Public

J'".' Federal

COAL OUTPUT
,?

567,134

$285,660,000

Fpb.

o

and

Other

?
y

Year

Month

$3,657
2,603

buildings and warehouses

Stores,

/

:

construction

State

"2a

21

construction

Public

55,646,000

100,402,000
59,924,000

of that dates]

Previous

-

OF

II_IILII
2 2.

_

2

Commercial

ENGINEERING

-J-

Total

!

84,021,000

AMERICAN RAILROADS:

OF

freight loaded (number of cars)

Revenue

V;»

oil

Feb. 20

are as

millions):

Industrial
Office

204,987,000

(bbls.) at(bbls.) at

Nonhousekeeping
buildings

213,116,000
18,596,000
96,668,000

20

oil

(in

Nonresidential

7,769,000

Feb. 20

Distillate fuel

January

DEPT.

new

12,008,000

Feb.

at

of

S.

construction....
construction
.IIIIIII™
Residential buildings (nonfarm)
New dwelling units
-IIHHI!
Additions and alterations
2

2,366,000

15,420,000

Finished and unfinished gasoline (bbls.) at
(bbls.)

CONSTRUCTION—U.

LABOR—Month
Total

6,807,635
7,506,000
25,937,000

28,101,000
2,465,000

Kerosene

,,

1,425,000

15,475,000

4 ij Stocks at refineries, bulk terminals, in transit, in pipe lines—

either for th0

are

Month

BUILDING

,

7,154,820
7,954,000
26,762,000

(bbls.).

average

of quotations,

cases

Private

7,208,320

output (bbls.)
Kerosene output (bbls.).
oil

'2,506,000

in

or,

Latest

ol
—Feb. 20

Gasoline

Distillate fuel

§2,535,000

that date,

Ago

80.8

/v

production and other figures for thi

cover

Dates shown in first column

Yeaz

Ago

*88.5

on

45

Grand

total

Balajice face

under

outstanding

amount

above

of

authority

1

obligations, issuable
$2,516,330

Chronicle

The Commercial and Financial

40

.

Thursday, March 5, 1959

.

.

(1122)

Blue

Milan D. Popavic,

By ROBERT R. RICH

ported to the stockholders that the

increase

an

capital

3i,

distributed during

assets showed an appre¬
Shares outstand¬

of 35%.

of

curities

risk-reducing di¬

investment management and

"Professional

financial

accepted by investors in their

versification continue to be

planning as the 1959 business scene unfolds," George A.. Mooney,
Executive Directo r of the National Association of Investment Com¬
panies, observed in issuing the Association's
Purchases by

investors of investment com¬

shares for the month totaled $223,516,000,
announced. This compares with
$131,605,000 for January, 1958, and $152,037,000 lor December, 1958.
Mutual fund shares turned in for redemp¬

CONSECUTIVE

108'S
QUARTERLY

DIVIDEND

EATON & HOWARD

during January, 1959, amounted to $75,048,000, compared with $30,445,000 for the pre¬
vious January and $58,813,000 for December,

16 CENTS A SHARE

1111th
,,U

1958, a range of 0.33% to 0.55% of the value of
outstanding shares at the end of each period.
Total net assets of the 153 mutual fund

CONSECUTIVE

members of the National

DIVIDEND

QUARTERLY

Mooney

tion

BALANCED FUND

EATON & HOWARD

12 CENTS A SHARE
Dividends payable RIarcb 25, to shareholders
of record at 4:30 P.M., March 10, 1959.
24 Federal

1959. Holdings by these investment com¬
panies of N. Y. Stock Exchange listed stocks as
of that date are estimated to represent slightly less than 4% of the
value of all listed stocks. As of Jan. 31, 1958, assets of the Associa¬
tion's 143 mutual fund members were $9,217,948,000.
Investors started 25,980 new accumulation plans — through

regular monthly or quarterly basis
—in January, 1959. In January a year ago, 18,371 such plans were
started and, in December, 1958, the total was 24,369.
;/iV,

Street, Boston, Mass.

which shares are acquired on a

JB&M l

}

tion, excess plant capacity in most
industries and an abundant supply

Fund Head Cites
EITHER PROSPECTUS

of

Non-Boom Factors

I
I

|

Incorporated
Investors

Stock

new

$9,436,114 for the year pre¬
vious. Net asset value per share

A mutual fund Hivesting in a

represented a gain of 37.3%
period after adjustment
for the $1.55 distribution paid in
December from realized gain on

|

list of securities selected for

|

possible long-term growth of

|

capital and income.
j
Y —-|

the

for

I

Income Fund

|

j

A mutual fund investing in a
list of securities for current

'

J
I

•
I

income.

i

L.

J

[

A prospectus

on each
fund is available from,

'

I

your

I

■

1

investment dealer.

!
I

The Parker Corporation

■

200 Berkeley Street

^

I

I

;

I

r

Boston, Mass.

sell

kets.

goods
—

new

a

cur¬

to continue

He

the

Production

high".
noted, however,

a

ket.

as

a

whole

a

view

.

H&l

a:

....

.1.2

vestment

centage

Index

stocks

as

could

lation

to

that

over

to

current

and

moderate

factor

likely at the present time in
view of
several possible deter¬
rents to such a boom. The efforts

reserves

becomes
common

way
can

the

risk

In

as

this

greater.

stock

percentages

be increased when individual

stocks

to of¬

■j

Equipment Shares.
Group's President,

a

closed-end,

investment

non-diversified

plied to this action, Dam confident

equity securities - of companies
operating in the six Common Mar¬
ket countries
(France, Germany,
ably
Italy, Belgium, Netherlands, and
Luxembourg). Eurofund's princi¬
in

pal objective will be capital ap¬
preciation. While the earning of
dividend or interest income will
be

values in

pects.

funds unite their

importance.

.

;^

result

~

Stein Roe Renames

annual

the

In

dated

Feb.

2, 1959, the board of
submitted
for
share¬

vesting in bonds,

what
'concept

but
a

,/ ij

.

concept of gpowih

those

sider

areas

Con¬

it.

investors understand

that

offer?

the

outstanding growth possibilities of

generations: space and
exploration, automationand
the name
of The Stein Roe & the implication of increasing pro¬
and
decreasing labor
Fund
Farnham
Incorporated
to ductivity
Stein Roe & Farnham BALANCED costs; nucleonics and the applica¬
tion of atomic power to practical
FUND, Inc. This change of name
had previously been unanimous¬ and almost unlimited production
of electric energy.
These areas,
ly approved by the board of di¬
with their common tradition of re¬
rectors as a means of more ac¬
directors

change

holder action a proposal to

the coming
its

,

curately designating the nature of
the Fund and to prevent any con¬

search,

STOCK FUND,

Inc., also managed

by the investment counsel firm of
Stein Roe & Farnham.
At the annual
holders

meeting of share¬

Feb.

on

the

1959,

17,

change of name to the form desig¬
nated
above
was
approved
by
more

the

than

two-

necessary

thirds majority of shares entitled
to vote at the meeting.
Accord¬

the true raw ma¬

possess

appreciation?'-/

terial of capital
When

fusion with Stein Roe & Farnham

shareholder asked if ad¬

a

Group'
funds were
planned, Mr. Anderson replied
"The plain answer is, 'no'. How¬
ever, I'm tempted to qualify tha
because in the past our specialized
funds have tended to merge them

ditional
15

among

mergers

industry

mutual

selves, rather than for us to merg
them.
I mean by that that .when

an
industry providing the invest
ment
substance
of
one
of oui
amendment to the cer¬
tificate of incorporation was filed specialized funds is radically al
tered
through technologica
on the following day in Maryland,
the state of incorporation, and the changes or product diversification
change of name became effective management is merely recogiiizin*

ingly,

an

by. suggesting

the

at that time.

fact

creating it."

National Shares

a

merger

Wellington Sales
In January Set i

Name to Be

Dominick Fund

30-Yr. Month

Higl
™
i

.

Varick

Stout, President of
National
Shares
Corporation, a
diversified closed-end investment
A.

listed

company

Stock

the New York
announced that

on

Exchange,

share

was

■»

Wellington Fund sales for Jan
uary, 1959, established a new all
time
record for monthly sales

on

* *

»

of

April 5,
record
.

to

according

Joseph

Welch

E.

Executive Vice-President.

1959, sales amountec
to $14,065,000, the highest for am
month in the" 30-year history o
January,

.

Wellington

breaking
1958

Fund.
This record
first month
followe

annual
also

which

time annual

also declared payable

ordinary income
to stockholders
March 31, 1959.1959,

CUSTODIAN

a^hie\ed :)t9day,

fund'.

as

statement

proxy

have

we

thereforfe,:
industry mutual fund,
I would prefer to call
"I refer to the

One of Its Funds

a

FRANKLIN

itechhologies ^nd

s^affi^gbre|s^ng

given due consideration, it will

normally be deemed of secondary

from

mutual fund in¬

than vthe/vsum >e>f 'jits

more

:pr<^uction a^

realistic

.

0/ GROUP SECURITIES, INC.

technically hag

te^j^niergei^,

.

wavy.;

Herbert r,R.

:

commented: "While the

Anderson

com¬

It intends to. invest primarily

pany.

price stockholders had approved amend¬
relation to growth pros¬ ments to the corporation's certifi¬
cate of incorporation to increase
the authorized capital stock from
2,000,000 to 3,000,000 shares and
also to change the name of the
corporation to The Dominick
Fund, Inc. A dividend of 12 cents

represent

the Administration to check infla¬

ADMINISTERED FUND
A

Aviaion - Electronics - Electrical

proposed sale

a

& Co. will head the group

estimated

Get the facts on
the FULLY

of

Exchange

he

policy to reduce the per¬
of
assets
in
common
prices go higher in re¬

increase

BOOKLET-PROSPECTUS
on

Inc., approved the iteps
to the merger of two
this leading investment com¬

potential of earnings growth and

of the Federal Reserve Board and

free

these factors

reported that the management of
the Fund considers it sound in¬

more

-

rities,

not

of all

increase in business activity seems
V////M■»/;;>//'»v•?/" vm'"'/'v

potential

the

of

\

In

new

year

because

growth of larger and more effi¬
cient competitors inside that mar¬

boom could develop and

Industrial

foreign and domestic mar¬
that the Euro¬

He also said

also

particularly automobiles

the Federal Reserve Board
of

manufacturers

tage not only because of eventual
free trade with
the E.C.M.,
but

accelerate the purchase of

—

States

Mr.

six months of
1959, but its extent and duration
are
subject to a number of un¬
predictable factors. If inflation
psychology increases, and if con¬
sumers

com¬

position to under¬

pean

first

the

during

a

Common Market will place
American exporters at a disadvan¬

"We expect the

rent business recovery

in

United

in both

2,511 to 3,888.

Price stated

are

increased

Hi his letter to stockholders

reach

I

panies

total num¬

During the year the
of
stockholders

ber

from

J Incorporated j

creasing number of foreign

sale of securities.

the

in¬

that

noted

competition from

ital, and some nations have been
taught American know-how. With
much lower labor costs, an in¬

This

|
|
|

|

men¬

possible

been financed with American cap¬

$36.45.

to

$27.67

also

were

this

abroad
be expected, citing that many
production
facilities
have

may

$16,778,582

from

from

He

creased

total

that

to

increased

assets

Growth

reported

Inc.,

increased

1925

Price

Rowe

T.

Fund,

I

affecting

as

boom.

FREE ON REQUEST

ESTABLISHED

commodities

raw

tioned

Feb.

on

Group Secu¬

Se¬ .'necessary

the

31,

George A. Mooney

STOCK FUND

Association of Invest¬

Companies were $13,705,526,000 as of Jan.

ment

and

covering

Eurofund is to be

pany

Mr.

of

of

with

fer the shares.

for January.

statistics

European Com¬

a

shareholders

the

fund, has filed a reg¬

statement

annual meeting

the

At

24, an overwhelming majority^of

Commis¬
of pany's 21 mutual funds, Aviation
Shares and Electronics & Elec¬
2,500,000 shares of common stock.
trical Equipment Shares, into a
The offering price is expected to
fund"'bearing the name
be $20 per share.
Glore, Forgan single
sion

ing also increased by 118,276.

h

Market

istration

Mutual Funds in 1959

1957. Adjusting for

the year
ciation

mon

Investors Continue Acceptance

from

$8,477,426

of

gains

December

Eurofund, Inc.,

year-end

representing

$32,218,967

>

Fund Established

President, re¬

assets of the Fund at the

a\

Market Closed-End To

Mutual Funds

Rise in Assets

were

European Common Group Securities;
Merge Two Fds.

Ridge Reports

r

for

Sales

sales of $118,000,00

represented an all
high.
January, 1958,;,wer

$9,300,000.
Jan.;

On

-

Fund

1959,

30,

resources

Wellingtoi

were

$873,104,00

'
.

compared
with '- $632,387,000
Jan. 30, 1958.

Inc. Foundation

o

'

preferred and
mon

the

com¬

proportions

"balanced" in
*•

cordance

Income Foundation Fund

ac-

new

with

Find out

management's
judgment.

now

about this series of Mutual Funds

,

'

vestment

advertisement.

in American

INCOME SERIES

PREFERRED STOCK SERIES
-Stale.

City

DISTRIBUTORS GROUP,

INC.

New York 5, N. Y.
■

ill!!llllliiiillil




\

CFC

FRANKLIN CUSTODIAN FUNDS,
64 Wall Street

•

INC.

New York 5, N. Y.

of

Maine

Total

Public
Halli¬

Cementing in
It also increased
its
holdings
of
National
Cash
Register common during the
month by 1,000 shares. After these
purchases
the 25-year-old
bal¬
anced mutual fund had approxi¬
mately
60%
of
its
assets
of

stood

800

Oil

of

Well

1959.

approximately
common

mainder

ties.

$9

stocks
in

fixed

million
with

the

income

in
re¬

securi¬

assets

record

at

1959, it

and

net

American

of

share

shares

and

burton

-

made

stock

shares

2,000

January,

BOND SERIES

UTILITIES SERIES

Address.:

of

common

Service

industry.

COMMON STOCK SERIES

Nam®_

63 Woll Street,

;

seeking possible growth and income through in¬

Mail this
i

Reports Purchases Calif.-Based Fund
investments Reports Share Gaii

FUNDS

stocks, with

was

assets pe
Fun

Mutual

highs

on

Jan. 3

reported by Preside

Jonathan B. Lovelace in his repo
to

shareholders

the

quarter
assets

of fiscal

on

for

1959.

the

Total

fir
n

Jan. 31 were $102,938,81

equivalent to $8.94 for each of th
11,514,455 shares outstanding. Th
with total assets of $94

compares

920,871 at Oct. 31, 1958, equivale
to $8.47 per share on the 11,211,13
shares then outstanding.
Adjust
ing for the capital gain distribu

Volume 189

Number 5826

s.,.

The Commercial and Financial-Chronicle

.

(1123)

\
of 18 cents
per
enease

.

during

-

.,;W#s

share, the in-

7.7%...,

-

4.^,.;. ^:

.

vqoiNeti. investment income

for the
r/tferee months ended Jan.. 31,-; 1959
...fSwas.? $651,221
or
approximately

Securities of the following com¬ the
Fund's
portfolio
from
603
panies were ' eliminated: ^Mhericam candidates iiT the S-4 class.
Metal Climax, Bendix
-Increased holdings of elec¬
Aviation,
Crum
&.Forster,TDetroit Edison; tronics stocks, which constituted
Filtrol, Ideal Cement, Inland Steel, almost
17%
of
the
portfolio,
International.. N i c k el,i-Johh$oh played a major part in the year's
~

.

ili net asset value per'share
the three months period

t

Service,

National

Tea,'Pfizer,

xents per share on the average
Rayonier, Richfield Oil, Standard
.nuhiber of shares (11,315,178) out-, 011 v of
New
Jersey, American
standing during the period. This Electron ics
(5% % convertible

i

-.

,

if compares

iixoihe

of-

with, net investment in-

$664,332

sponding

period

in; the
a

debentures),- and .Arden Farm#
(5 % convertible debentures).
"T

corre¬

earlier,

year

^equivalent to 7.34 cents per share
isfon) the average number of shares

Keystone S-4,Fuiul

q(9,041,341) outstanding during that
mperiod.

i..

Best '58 Performer

The largest industry holdings in

~*jArfrerican Mutual

In

Fund's portfolio

without

Hat f an. 31; 1959 were Public Utilif^ties. including Telephone, 10.6%;
*-Steel and
,

Iron.

^"Transportation,

8.1 %;

6.2%,

Oil,

performance believed to be

a

of

Priced

7.1 %;

precedent

in the history
funds, Keystone Low-

mutual

Common

showed

Stock

Fund

S-4

appreciation of 65 % in
value per share for the
12 months ended Jan. 31, accord¬

Banking,

net

--fvEleetrical

an

panyf . Armco. Steel,

.

Harvester,

International

for

assets

International

121%": to

TeleNor-

dustries

the

period

$31,158,197

increased

and

number

in

other

which- the

Fund

in¬

-phone and Telegraph, and
folk & Western Railway. •

set value would have been

and

-H

Cerro

$12,591 of realized profits.

i

representations; railroad,
building, 8%; paper and
packaging; 7:7-% «nd machinery

DIVIDEND NOTICES

8.6%;

Cash Dividend No. 155
The

stocks, 6.1%.

of

Corporation
meeting held on March
of

mon

March

cents

die Com¬

Corporation,

March 30, 1959), to

on

stockholders

METALS, INC

on

Stock of the

payable

cash divi.

a

twenty-five

(25tf) £er share

MACHINE AND

transportation
adding 21,300 Western
Lines and 30,000 Northwest

13,

of

record

on

1959-

Michael D. David

Airlines.

(Hst Dividend

his report, Mr.

shareholders,
figures

Sholley tells

"While

of SEVENTY CENTS per

your

declared

been

has

capital

stock

issues

quarter

of 1959,

providing^ opportunities for

long-term

capital

reason

the

.

growth.

10-year

March

31,

holders

For

of

16,

results

New York 22,

DIVIDEND

QUARTERLY

A

short-term

impressive,

are:

300 Park Avenue

Fund's investrrient emphasis is on

that

Directorsof

1959, declared

dend

AMERICAN

by

In

of

*/&sco

a

3,

returned to the air

Air

de

at

Chicago
and
North
Western and by increasing its in¬
terest in Chicago Great Western
and
Western Maryland.
It also
field

Foard

Cerro

Keystone boosted its railroad
holdings by adding 30,000 shares
of Gulf, Mobile & Ohio and
15,000
shares

Pasco

de

CORPORATION

for

.

N. Y.

share
the

on

the

first

payable on

1959,
record

to

share¬

on

March

1959.

of shareholders
record

$23,502

plus $4,736 of investment income

had

jumped 61-%, both are of greater significance."
figures.
;
X? i
1; The report shows the 10-year
X For the calendar year 1958,*
J11the quarter; the follow- Keystone S-4 led all other funds results of a hypothetical invest¬
"'ing new additions were made to
ment of $10,000 in Keystone S-4
with an appreciation of 77.8% in
the portfolio of investments: Aetna
net asset value per share. - ^ v
made
on
;
Dec.
31,
1948.
With
Life, American Radiator & Stand¬
Mr. Sholley lists three reasons
capital gains reinvested in shares,
ard* Sanitary, American Viscose,
for the unusually large capital ap¬
Granite ;,City
total net asset value on Dec.
Steel,
Gulf:. Oil,
31,
Louisiana Land, Nopco Chemical, preciation in such a short period:
1958 would have been $49,400 plus
North American Aviation, North¬
strength of the stock market "gen¬
$6,223
net
investment
income.
west Airlines, Radio Corporation
erally; greater investor interest Had all distributions been
rein'of America, Republic Steel, Smithin the smaller and newer growth
'fcoi-ona Marchant, Southern Pacompanies
and
industries;
and
i fcifif and Thompson Ramo WoolDIVIDEND NOTICES
'

DIVIDEND NOTICES

tions been taken in cash, the as¬

sizable

asset

and Electronic,;
largest individual hold¬
s'ings at;: market at that date were: ing to the semi-annual report
.' American
Telephone and Tele- being sent to 14,592 shareholders.
S. L. Sholley, Keystone Presi¬
dent, ./points • out that total net
The

capitaL results.^: So did

vested, the end value would have
been $67,683, and had all distribu¬

ELECTRIC

Robert G. Burns, Treasurer

BOND AND SHARE

^

.

COMPANY

tithing

&ew York, N. Y.

'

dridge Inc.

•

.

careful

i

selection

of

58

stocks

February
DIVIDEND
At

fit

(17}2'c)

AMERICAN

ig'IOf

share

per

payable

holders

of

March

(in

of

1959.

share

its capital

on

the par

Funds)
was
1959, to share¬

30,
close

of

business

W.

COMPANY

:

'usr.

cash

quarterly dividend of 75^

per

share (1^%)

on

a

dividend of 30^ per share on the Common Stock

have been declared. Both dividends
1959

to

holders

of record

March

are

payable April 1,

stock

9, 1959. The stock
-

SCHNEIDER

E.

INTERNATIONAL

COMPANY
St. Louis

The Board

At

192ND

QUARTERLY
DIVIDEND

CONSECUTIVE DIVIDEND

7\\

the

Common Stock

the Board of

PREFERRED

STOCK

«•

.

Directors declared

Louis T. Hindenlang

February 25, 1959

at
on

on

dividend:

time

same

transfer books will remain open.

record

LONG ISLAND LIGHTING COMPANY

dividend

February
19,
1959 declared the
regular quarterly divi¬
dend of 50c per share.

Preferred Stock for the quarter ending March 31, 1959
and

a

5%

Both

dividends

clared

dividends
to

stockholders of record

to

the

are

payable March 28, 1959

John R. Park
Executive Vice Pres. & Treas.

at

the close of business

share payable

at the close

of business March

was

declared by the

Board of Directors.

Per Share

5%

April 1,

on

12,1959,

Scries

on

1959 to stockholders of record

March 13, 1959.

Series B,

quarterly dividend of 45£

per

following quarterly
payable April 1, 1959

holders of Preferred Stock of

record

March 2, 1959.

on

A

The Board of Directors has de¬

stock dividend.

S

Secretary and Treasurer

I

SHOE

of Directors

the

Betsch,

February 26, 1959-

Broadway, New York 4, N. Y.

25

STORES

162nd Dividend

Common Dividend No. 202

the

March 6, 1959.

Treasurer.

Preferred Dividend No. 212

A

B. M.

COMPANY

r!Oig.

at

March

on

share,

business

close of

R.

AMERICAN

business

Secretary and Treasurer

stock of
per

1959, to

of record

9, 1959.

Secretary and Treasurer

:<>

•;»'>

of

stockholders

to

MICHEL.

and

of

per

Stock,

on

the
President

value of $50

(35£)

cents

payable March 31, 1959,

Canadian

the

at

1959.
CLIFFORD

BANK NOTE

i

close

declared a dividend
Fifty Cents ($.50) per

nd;
■dp.tj

shareholders

COMPANY

ANACONDA

quarterly dividend

the Common

on

has today

166

April

on

record

30,

Dividend

payable March 30,

a

declared

mil

203

a

thirty-five

share

The Board of Directors of

meeting of the Board of Directors of
Mines Limited, held this day, a quarterly
dividend
of
Seventeen
and
One-Half
Cents

-aiod

of

February 26, 1959

Dome

'•ij'Oi

•a

NO.

27,

NO.

DIVIDEND

LIMITED

DIVIDEND NOTICES

In 1!;^

declared

AnacondA

THE

MINES

of

The Board of Directors has

for

DOME
]U<

Notice

$1.25

ROBERT O. MONNIG

$1.0625
$1.0875

Vice-Preji4«nf end Treasurer

Series

4.25%
E, 4.35%

Series

F, 4.35%

$1.0875

Series D,

Series G,

THE

COLORADO

IRON

FUEL AND

.,

;

i

4 i

,

February 24. 1959

$1.10

VINCF.NT T. MILES

CORPORATION

February 25,1959

■

!

4.40%

Treasurer

H :

FINANCIAL

Dividend Notice

NOTICE

■i

The

Board

of

Directors! of

The

Fuel

Colorado

and Iron Corporation today, Thursday, Febru¬
26th, declared a 2% .common stock dividend
payable April 8th, 1959 to common stockholders
of record on March 9,
1959.
The Board of,Directors also declared the regu¬
lar-quarterly tdtvldehd.of ,62fA cents per share
ary

the

on

$50

par

are

G8:!5 cents. per sharer on !the series B
value preferred stock.
These dividends
payable March 31, to holders of record at
of

close

With

1 4 *8 T H

DIVIDEND

mon

business on March 9. respect to. the stock dividend on the com¬
stock. Mr. A. F. Franz, president of the

corporation, stated,
"The
In
operating Results
and
term

A

I

%

if

.

quarterly .dividend of $0.G0

jjcr

.share in cash has been

declared

'! >>

Stock--of

•J-

;!

.

a

FINANCIAL

-3:

f,' I
e:

CjT
CORPORATION

r

the

on

C.

I.

Corpora! ion,

payable April 1,

1959, to stockholders of record
the close of business March

warrants

to

Directors

dend.

of

the

.Future

has

the

the

common

declaration
stockholders.

voted

dividends,

improvement
favorable near

a

2',',

stock

of

1959. The transfer books

.will not close. Checks will be
mailed.
C.

John Kuiin,
Treasurer

February 26, 1959.

i

'

(Incorporated)

a

Earnings Statement for Twelve

"

111

Quarterly Dividend

The

or

on

tin

COMMON STOCK

.

of

the

common

stock

dividend

will

be

given

option

to sell their fractional-share inter¬
to buv a fractional-share interest suf¬
to round out their stock dividend to the
nearest full share.
The Marine Midland Trust
ests

or

ficient

10,

i

Company
of
New
York
has
been
appointed
agent for handling such purchases and sales,
which will b" made at the instruction
of. and
for the account and
record
of, such holders.
The

ne'riod

in

which

such

sales

or

and the cash proceeds
of
fractional-share
D.

out¬
sold

forwarded to the holders

C.

per

share

Payable March 31, 1959
Record March 13, 1959

Declared March 4, 1959

WEST PENN

ELECTRIC SYSTEM

purchases

be made will expire on Mav ivh,
fractional-share interests remaining
standing
after
May
11th,
1959
will
be
may
Anv

40^

McGREW, Secretary.

AND POWERCOMPANY

Months Ended

divi¬

whether

THE CONNECTICUT tIGHT

Company

recent

payable in
stock, will be dependent upon numerous
facts, many of which cannot be predicted with
any
reasonable
degree
of
certainty
at
this
time." j
" ' ■
.
.
| v
|
j Those
common- stockholders
who are
entitled
to receive fractional-share interests as a result
an

at

r(




Common

J. Financial

outlook

dividend
Board
cash

Electric

the

Security Holders of

_

Xxest Pen

sertps'-A'^O pqr-vvaluei preferred stock,

and

Notice to

THE TT T

Monongahela Power Company
The Potomac Edison Company
West Penn Power Company 1

January 3T, 1959

The Connecticut

Light and Fewer Con*
has made generally available f<J its
security holders an Earnings Statement
for the period of February 1, 195$ te
January 31, 1959, such twelve month
period beginning after the effective date
of the Company's Registration Statement
(2-13806) covering $30,000,000 First and
Refunding Mortgage 3%% Bonds, Series
O, which was filed December 19, 1957
with the Securities and Exchange Con*
mission under the Securities Act of 1933>
pany

amended, and which became effective
January 8, 1958.
Copies of such earnings statement will

as

be mailed upon request to

holders of the

Company's securities.
THE CONNECTICUT LIGHT AND POWER

Berlin, Connecticut
March 2, 1959

COMPANY

The Commercial and Financial Chronicle

Thursday, March 5, 195?

.

..

(1124)

48

cause the plants to run at near
capacity. Road machinery man¬
ufacturers will also
be called

BUSINESS BUZZ

to supply a lot of equip¬
but probably not what

upon

on

ment,

•

•

•

they expected to sell when the
program

Behind-the-Seen® Interpretation*

And

Capital

from the Nation's

launched in 1956.

was

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide ivith
•fT»

^0^14r»lni»*"r7

o

1

iiiomo

trTPXjrr-

-

C

:

The mighty blueprint
Congress approved with
enthusiasm in 1956 may

The "facts
oversold

Congress

are

miles of multi-laned,

was

stop-light

could

pressways within a few
"The whole program is

uled to be completed

years.

sched¬

within 13

The

finished.

have already been

that

whole

the

Government

Federal

The

90% of the cost, and the various
10%. Some qualified ob¬
servers in the
Nation's Capital
who are following the vast pro¬
closely estimate now that

gram

probably will cost

the program

$40,000,000,000 before it is com¬
pleted.

observer said
convinced that the

One competent

he

is

now

Interstate

overall

is

program

going to cost at least 50% more
than the original estimates pre¬

-

to

sented

Actually

Congress.

Highway
Act
was
pretty much on research
information of 1954 when

the

1956

prices
"*

The

is

and

1956

Roads

of

Bureau

Bertram

sees

two

These

trouble.'

Higher Federal Gasoline Tax

made

Unlikely

essary

in

Eisenhower

message

his

any

Congress
Federal gasoline

President's

the

Hill,

\

tax.

-

""the

on

sources

left

for

the

it

would

be

that

Congress

in various sec¬
tions of the country have edi¬
Newspapers

•'

*

on

Interstate

the

tax

the

and

road

question;
If
Congress raises the tax: now,
what will keep the powers that

:.

;
*

7

gress

three

or

passage

»

at

see

this

chance

a

session

of

"As I
gram

it

and
see

Means

it, this Interstate

is not quite

was

when

as

to

the

>




as

There

yield

Trust Fund.

an

shows

agency

that

as

on

11,463

had

been

way, or

•—

mostly underway,
Right-of-way

miles.

and
design
work
"completed, under¬

authorized"

16,843

miles.

on an

addi¬

These fig-

with

jet-prop Brittania,airliners flying

Ailen, in

ap¬

from London via the United States

questioning that it would be in¬
appropriate for him to suggest
any
alternate
money-raising
plan
until
the
proposal
of
President Eisenhower to raise

ning the world will not only tre¬
mendously
increase
passenger

gasoline tax, was formally
upon
by Congress.
He
rejects the plan
it should come up with its own
recommendations
designed
to
the

acted

said if Congress

going

keep
the program
"schedule."

developments.

on

STIMULATING THE

Senator Francis Case, Repub¬

Eisenhower

President

that

would

veto

measure

Congressional

any

that would appropriate

funds from the Treasury.

The

facts

oversold

Congress

are

in

somebody

by

the

when

law-makers

was

1956

passed

Highway Act and set up the
Highway Trust Fund. Even if
program

stretched

is

out,

6,000 highway
contractors in this country are
more

of

work

to

have

than

to
- a

great amount

They are going
work to do

do.

of

lot

is com¬
pleted years from now, because
the upkeep on those roads as
they wear out, will be substan¬
tial. The upkeep alone is going

even

to

after the program

take

a

lot

-

gasoline

of

tax

funds.
The

MERGER BOOM

South Dakota, believes

lican of

cement

dustries

will

outputs

to

and

have

meet

asphalt

in¬

tremendous

the

pay

Irresistibly there continues th

proclivity for corporate mergin
diversification; in which
coal company has branched ou
into the production of underwe
and
cowboy boots, and a tir
company into the manufacture o
rocket engines and reactors. Fol
lowing
on
the
accompanyin
boom in business- consulting a
and

well

finders'

is

activities

th

of an expanded pub
lished service to the diversifiers

publication, "Balanc
(at $100 per year), lis

annual

An

Sheets"

statistics

alphabetically ,with
to

500

.

u

are ri
that their commo
selling
below boo

companies which

for merger in
stocks

are

value, and in many cases belo
their net working capital.
An in
teresting additional stimulus t
finders'

the

boom!

diversifiers

and

i

•

......

demands,

although the demands may not

TRADING MARKETS
„

American Cement
Botany Mills

-

;

-

Heywood-Wakefield
Indian Head Mills

into the High¬
The motorists

W. L. Maxson

jj

Morgan Engineering
National Co.

j

Southeastern Pub. Serv.

.

United States

Envelope

the bills of the Federal
are opposed to a
appropriation of money

Treasury.

~ "

i

' :

,

Program
'.

as

appearance

Government,
direct

•

span¬

traffic, but is also quite certain to
act as a great stimulus to longhaul cargo traffic, volume.
,
,
Surely,both travel- and in¬
vestment-wise the future of the
airlines, industry is about to be
crucially
determined
by
Jet

a

from the

pro-

popular

it started.

is

a

ex¬

above what the pres¬

sizable amount of taxes
now go to the High¬
way Trust Fund,
but are di¬
verted into the Treasury,
1
Obviously the Treasury De¬
partment. already sorely pressed

of

Committee.

in

of

result

trans-Pacific

that do not

gasoline tax increase measure,"
said a member of the House

.Ways

underway

sugges¬

Secretary

going to have a
pre¬

the

be

will

proposed

to Tokyo and Hong Kong.
This first all-jet service

the

new
year began, construc¬
tion had been completed or was

and

taxes

pay

five years from

'

not

Commerce)

Under

$8,000,000,000

major item

with a

era

pearing before the Senate Roads
Committee,
said
in reply to

the

a

carried

has

the jet

into

planes

service
new

the

to

the

tional

ent

the

do

of

It
highway

impressive on

Government Aid Doubted

the
now at

a

committees

of -Roads

Bureau

acquisition

way

highway program is
going to be seriously crippled?
.'"I

ad¬

before getting started
construction.

and

for the Future

tension route to be operated

bond

for

testimony

the

is

Capi¬

sound pretty

ures

the face.

--

now and saying again: If you
don't
provide
us
with more

funds

There
on

Congress by the officials of the
Department of Commerce (the

actual

over

j .be from coming back to. Con.

to

sented

possible

demands,

which is
budget.

Meantime,

-

planning their programs.

are

the

taining
to
future; financing.
Many of them ask that Con¬
gress
appropriate the money
out of the Treasury to meet the
f .u.tur e apportionment needs

the Federal tax again.

torialized

much
as

of about

bonds

more

costs.

year,

in

made

as

rate

persuasions from all
parts of the country coming
into members of Congress per¬

7

issue

sentiment

at this time

Ilill

the
a

the

information

have

are

that

may

tions

mistake to raise

a

no

even

Federal

the

The interest cost
Federal Government is

year

so

advance

There

State officials in all parts of the

advised

apportionments

on

states.

that

for the

or

have

people

Some

pay

little

$500,000,000.

only

to

in

in

of

one

calendar

1960

takes months to plan a

*"

country

the

program

is

gasoline

to

tol

vance

..

tax

A

to get Congress to pro¬

issue.

States

have
raised the state gasoline
tax,
and others plan to increase the

of

Government

apportionment of Interstate
during the calendar year
(for the fiscal year 1961).

far

-York,-

-

nec¬

forego

(for the fiscal year 1962) would

At least five states,

New7

amount

suggested

are

it will be

exert a tremen¬
influence and

to

going

how.

that

funds

The

are, like the Bureau
ofPublic Roads, in need of more

road funds.

is

vide the money some way, some¬

the

and

completely

to

amount

states

*

available

during

various

1 including

it

dous

Furthermore, these officials in¬
sist
that
the
apportionment

proposal

The

dead.

appears

industry has got
its foot in the door strong, and

1959

to
tax an addi¬
tional 1.5 cents a gallon. Unless
.sentiment changes on
Capitol
asked

,

year.

The highway

funds

Jan. ; 19
raise the

on

after

ap¬

maintain

additional

unless

President

Strauss

officials

other

Fund

Trust

1972 probably would
be $15,000,000,000 or more un¬
der the present tax system.
It
probably would run substan¬
tially greater
because prices
and costs continue to rise year

pressure

Secretary

programs

the

to

income

1963.

by

000.000,000

$5,The total

through

numer¬

have

The

by $923,000,000 by 1960.
deficiency will amount to

roads.

on

priority over the revenues.

budget

witnesses

"red"

Trust Fund will be in the

peared recently before the Sen¬
ate Public Works Subcommittee

money

have

and

Highway

the

because

ever,

J. Allen, Jr.,
Administrator

Tallamy,

other

ous

an

shortage before
long. The primary and secondary road programs are not in

;

John

Commerce

Federal Highway

currently in trouble is that

the

acute

plan for a 13-year authorization
period during a 15-year con¬
struction period, but the stretch¬
out
looms now stronger than

Strauss, Under Secretary of

L.

now.

that the program

reason

pro¬

Secretary of Commerce Lewis

lower

generally

were

in

than

being

States

Warn of Money Shortage

based
and

advertising!"

be lifted.

tolls would

modernizing our

"This is NOT what I meant by

maintenance
of
course, main¬

the

by

from

32%

entirely powered
by pure jet and jet-prop engines.
She
plans
to
inaugurate
the
world's first all-jet service around
the
globe
within
the
month.
Passenger capacity will thereby
be increased by about 40% in 1959.
The first round-the-world jet
of

fleet

that built
these links, such as New7 York,
Pennsylvania, New Jersey, Con¬
necticut, Ohio, Illinois and Mas¬
sachusetts.
But the upkeep is
toeing paid out of the revenues
j paid by the motorists who pay
to
ride
on. those
toll roads.
;
Once they were taken into the
;
Interstate system of highways
through "purchase," the present
vided

period and

momentum

B.O.A.C.

already

is

tenance

states

Its revenues actually

Build-Up
This

Of

roads.

those

use.

December to the end of January.

would
paid for hy

of

question

pays

jet

December

he
taken over or
the
Federal
Government
on
the
basis of 90-10 like the current
construction
projects,
is
the

1956 estimated
could
$27,000,000,000.

concerning

the airlines' earnings

increased 21% during the October-

roads

the

Once

program

with

built

he

from

Govern¬
concretely

carrier

optimism

stimulus to

give them up.

to

barrier, however, is
the Bureau of Roads is running
out of money.
Testimony be¬
The great

fore Congress in

the' British

by

warrant

hundreds

are

agencies, are non-callable.
bondholders do not want

state

Some links of these roads

years.

The actual results revenue-wise

posted

of mil¬
lions of dollars of bonds out¬
standing
in
connection with
these new toll roads.
Many of
these
bonds,
backed by, the
faith and credit of the states or

rubber tax, etc., the nation
have these beautiful ex¬

the

.

creases
by
rising 54% and 21%.

Affected

Bonds

Road

There

previous

the concurrent in¬
the - two U. S. lines

with

ment-owned
Toll

the

month

same

year,

desig¬

highways that have been
nated as Interstate links.

raising

and

the

multi-laned express¬
ways built by the States. There
are hundreds of miles of these

Congress told the people back
home that by raising the Fed¬

tax,

„

passengers which it carried during
December- increased by 65 % over

divided,

fine.

gasoline

f

Observations

of
and some States,
is the question of the .Federal
Government
"purchasing" the

crete and

eral

Continued from page 4

problems

major

the

of

One

divided ribbons of con¬
asphalt. It all sounded

'free,

na¬

over

up

Public Roads,

the proposed 41,000

on

the

of

worked

facing Congress, the Bureau

altered.

have to be

cities

are

expressways."

these

trouble.

great

jVI

that

tion

project — the Interstate High¬
way
program—is definitely in
which

llffl'll

scattered

in

construction

biggest

world's

C.—TJic

D.

WASHINGTON,

Stretch-Out

Looms

!

Congress is still shooting for
the completion of the Interstate

'
~

Investment Securities,.

II Post Office Square,- Basfait
;_

Telephone-

.*

HUbbardi 2-19907,

-

9, Mass.

Teletyp.
BS 6P