Full text of Commercial and Financial Chronicle : May 16, 1963, Vol. 197, No. 6264

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

The COMMERCIAL and FINANCIAL
r.

f.

,

1

j

t
'

Reg. U. S. Pat. Oft,

'

I

'

J

.

'

'

•

f
■

i

THE

Volume

Number

197

LEADING

AND

MOST

INFORMATIVE

6264

New York 7, N.

As We Sec It
forthcoming conference

ferences": between
China

will, of

terest and

have to do with

Union

and

Communist

in countries which have

major

making

the ''ideological dif¬

over

Soviet

-

be watched and analyzed with in¬

course,

concern

either of the
tion of

the

involved and have

powers

Central

to

appear

emended

as

values.

world,

stock

care

a

over

the

are

Cents

regarding the inevitability of growth
both, are likely to be spurious.

validate

avoid the
market

shaping

can

a

Copy

ratios,
it is

resume,

and
moot

a

fundamental

that,

says

question

support

to

if

as

to

stock

inflation

whether
market

would

for

not

example,

that

bumper

economic

assure

growth;

that, although higher invest¬
frequently leads to faster growth, it failed
in the United States in

so

We

valuations.

1955-57 and sub¬

have

also

learned

to

distinguish

between

demand-pull and cost-push inflation. We have
that

inflation

without

occur

can

either

seen

rapid

monetary expansion or budget deficits and
budget deficits need not breed inflation.

a

Growth and inflation are
phenomena of special
interest to investment analysts—but also to finance

of world-wide interest.

do

sequent years.

hopes investors' confidence in the economy's prospects
vigorous growth will be the force to shape stock value.

for

learned,

babies

old, tired, and apparently rigidified economies
spring to life and exhibit rapid growth (France

to do

were

it

of

ment

time to justify still

even

inflation,

or

in the past decade);

values, notes stocks' growing expensiveness, doubts
over

have

crops

that

stock

P/E

He

controlling influence
foreign policies of such large countries as Russia

and China which

50

or

Governor Mitchell surveys complicated forces

provide

of which having been refuted meanwhile by the
events of history. These
"ideological" matters seem, how¬
have

will

profit margins will appear

to

many

at times at least to

1839

Price

Washington, D. C.

market analysts to

higher

great

deal about the abstractions of these elder communists—

ever,

stock

inflation

sizable

people in

very many

feel certain,

we

banker advises

assumption that

easy

being used to refer to the complicated,
analyses and preachments of Karl Marx

by Nikolai Lenin. Not

ESTABLISHED

...

We

interpretations of the Marxian "dialectic"

the non-communist

FIELD

Y., Thursday, May 16, 1963

of the Federal Reserve System,

—the latter term
often unrealistic

FINANCIAL

inten¬

no

"Ideological differences"

any.

THE

By George W. Mitchell,* Member, Board of Governors

ties with

no

IN

Inflation and Growth Implications
In Analyzing Stock Market Values

EDITORIAL

The

PUBLICATION

Finally, growth

can

flation. And inflation

ministers, central bankers, economic planners, and
professional academic
economists,
governments,

nomic advance

differences-- do not have

and

many

with and without in¬

be

accompanied by

eco¬

on

times realized. These differences
may well be a reflection
of rather basic
changes going on in the world and ofY

occur
can

that

We

can

not but

'

wonder, however, if these "ideological
a
deeper meaning than is some-

For

.*

experience with the practical affairs of mankind; They
may even reflect in one degree or another certain na¬
tional trends of
for

centuries

thought easily visible

of

capitalism.

Bolsheviks in Russia is
and with their

passing

The

international
these

tion,

slowly passing from the

the relation-

as

in

man

of

of vital

are

also of vital

are

generation

for

the

the

concern

street—on

benefits

and

to the

and

;;

ters.

bringing

of reality to the

sense

who have been

trying for

powers that

a

is

happening in China

a

may

be

(Continued

on

page

18)

securities

Government,

Public

afforded

are

them, are simple mat¬
They are, in fact, exceed¬

REGISTRATION—Underwriters,
complete picture of issues

a

tial undertakings in

our

now

Underwriters

A-A.'AG-

Section,

•

.A.

MIDWEST STOCK

STAfI

;

AH

623

that

the

market

participants

has

relevance

First

of

all, it

popularity

of

seems

readily

apparent

(Continued

common

that the

on page

25)

State,

Municipal

28.

page

So.

Co.

&

Hope Street, Los Angeles 17,
California

Offices in Corona del Mar,
Encino, Glendale, Hollywood, Long Beach, Oceanside,
Pasadena, Pomona, Redlands, Riverside,

1.

Agency
Bonds and
Notes

■

San

FIRST NATIONAL CITY BANK

Diego,
v

Santa

Ana,

Santa

Monica,

Municipal

Bond Division

THE

■

Whittier

*

Inquiries Invited

Bond

on Southern
California Securities

Dept. Teletype: 571-0830
New

Chicago 3, III. FRanklin 2-1166

York

Correspondent

—

MANHATTAN

Pershing & Co.

BANK

wm
Net Active Markets Maintained

UNDERWRITER,
\

DISTRIBUTOR,

To

T.L. WATSON&CO.
ESTABLISHED

DEALER

Block

Members

'

first

<Sout/lW€At
company

American

Stock

Exchange

Orders

BROAD

Executed

On

212-571-1213

Goodbody
„

AMEOY

ARTS

.

CANADIAN DEPARTMENT

N. Y.

PERTH

GRAPH IC-

it«uuimt»tiinniiiiunntii»mintiim»wmiiitiiHt*nt«itiiiniti»t

MRECT VIRES TO MONTREAL AND TORONTO

BRIDGEPORT

RIGHTS

All

STREET

NEW YORK 4,

CALIFORNIA

THE BANK of NOVA SCOTIA

(Expire June 7, 1963)
Teletype

25

DIVERSIFIED

buy

Canadian Exchanges

Exchange

DALLAS




Inquiries Invited

to

.

Commission

New York Stock

f

We wish

Dealers, Banks and Brokers

Canadian Securities

1832

'

!
t

me

Exchange

'A'Vk A

*

!

to

particular mix of growth and inflation

by

Members New York Stock
Exchange
Associate Member American Stock
Exchange
Members Pacific Coast

I

135 So. LaSalle Street

w

II

on

v

EXCHANGE^

770-2661

TWX: 212-571-1414

!

starting

Dealers

•

MEMBERS

ir.

clear

to that valuation.

Lester, Ryons

DEPARTMENT

P. O. Box 710, New York 8, N. Y.

•

profitable operation and

dealers and investors in corporate

Securities
CHEMICAL BANK NEW YORK TRUST COMPANY

770-2541

a

seems

Housing

Corporate & Municipal

phones:

projected

MULLANEY, WELLS & COMPANY

A

Distributors

BOM)

also

and Public

Municipal

Securities

s

and that the

George W. Mitchell

Housing,

State and

:

it

registered with the SEC and poten¬

"Securities in Registration"

To

the analysts'

general level of stock valuation is in the
long run
dependent upon the total economic
environment,

the linkages

learned at great cost that
popular rules of thumb

SECURITIES NOW IN

U. S.

position. But

ingly complex. Many a finance
minister, economic planner, professional econ¬
omist, not to mention investment analyst, has

good many years to match,
capitalism in economic performance. What has
happened
or

nor

on

short-run
business
cycle
developments
knowledge of individual stock and indus¬

tries is indispensable to

that neither growth

inflation,

nor

be in Russia

years

question, I will border

implications

valuations?

to

where

between

greater

war

growth

market

related mainly to shifts in investor
psychology

are

ulti¬

We have learned in the
post¬

of the missionary ardor of
early communist proselyter may be fading out of the
picture. The hard course of events may be
some

the

and

?tock

competence, but I have no intention
attempting to judge the market. I fully realize
that many intermediate fluctuations in stock
prices

mately fall.

scene,

inflation

of

whom

costs

the

analysis of

of special

•area

They

concern.

are

the

discuss this

-

A ship between growth and infla¬

at least in Russia

older

What

and

others, rgrowth and .in-

flation,'as well

by stagnation.

Simple, popular, and comforting rules of thumb
these complex matters are quite unreliable.

institutions.

individuals

or

MEMBERS

NEW

2 BROADWAY

NEW YORK

YORK
r

&

STOCK

Dominion Securities
Grporatiott

Co.

EXCHANGE

1 NORTH LA SALLE'ST.
CHICAGO

40

MUNICIPAL BOND DEPARTMENT

Exchange Place, New York 5, N. Y.

Teletype 571-0880
Area Code 212

bank of america

WHitehall 4-8161
'

.

„

.

,

.

N.T.&S.A.

SAN

FRANCISCO

•

LOS ANGELES

2

(2002)

Where

The Security I Like Best.

find Banks.

you

Brokers

The Commercial and Financial
Chronicle

This

..

Forum

Dealers

or

A continuous forum in

which, each week,

different group of experts

a

Their

New

"HANSEATIC"

find

sell,

or

to

f

will

you

slower

New

Just Call "If AiySEATIC

New

England

The

believe
best

NEW YORK

CORPORATION

f""

to

V

and

the

casual

the

attitude

Boston

ticular

and

dying

"New

area"

gospel
The

is

Service

Wire

Wide

World

Los Angeles

•

quite
a

of'

personal

for

Monthly Stock

our

The

Digest, and our other report®
that

•

give you a pretty clear

6, N.Y.

Telephone: BOwling Green 9-2895
is

i>tn

not

orders

an

for

solicitation for
particular securities

offer

any

or

cultural
in

/:

BOUGHT

—

SOLD

—

divisions
ton.

in

The

Stock

Detroit

1051

Stock

Penobscot

in

DETROIT

Branch

the

the

of

over

30%

Boston

/

England Tel.'s future
and

growth.

The

of

phones

in

have

its

New

rhange

the

from

from

1929

and

1929
1947

to

the

&

1957

Service Your Accounts

of

produced

5%.

growth

Quickly By Using Our

4.^4.^1

in

while

-hare

10%
has

trend
per

New

year)
$4)

give
"

on

bound

the monthly prices

you

all

will

publication

listed

securities

as

those

"hard

Over-the-Counter

trical
tion

quotations.

WILLIAM
25

B.

call:

DANA

Park Place

New York 7,

K Y.

higher

attendant

its

income

net
years

parent,

(holder
198.292
even

wage

in

growth

of

has

and

say:

69.32%

more

of

notable

in

&

the

shares).

common

that

Tel.

a

specialty:

devices.

but the

This

of

.

of

a

us

autumn

.

.

expect

held

down

these

at

confident

back-up

tran-

that

will

strong and flexible

as

a

solicitation

circumstances

of

an

offer

to

to

OFFICE

Telephone:

BEekman

3-3622-3

solid

keep

it

its specialty

as

field develops, particularly in the.
fantastically intricate Solid Circuit

networks.

The

corporation

has

gradually

devices

to

still

one-half

be

on

However,

account

of

The other

revenues.

may

area.

for.

.

total

sales

activity

areas

categorized

Guidance

as:

Guidance & Control: This cate-

includes complete electronic
and

APPEAL

reconnaissance

controls

and

PRINTING
130 Cedar

pre-

CO., INC.

St., New York 6, N. Y.

Telephone: WOrth 4-3033
J889—Our

74th- Yean—-1963

com,

fuel

efficiency-raising

use

nuclear

Long-term

outlook

of

""clear

as

costly

power

both

for. utilities

ocean-going
of

amount
was

becomes

ships.

received last

this

in

year:

and

for

record'

A

contracts

less

line

$21,-

over

.

that

the

us

elec-

grow at

faster rate than that of the

"Texas

.

ex-

Texas Instruments.

intends

.

.

to

company

a much larSer
but also to maintain a

rate of return

be construed

buy,

any

program, many

utives,

musicians, lawyers,

teachers and scholars

exec¬

have

seen

their work

published, promoted and mar¬
keted on a dignified,
professional basis.
All subjects,
considered—music, non-fic¬
tion, fiction, poetry, etc. Send for our
free
Ask

40-page illustrated brochure today.
Booklet CN.

for

VANTAGE PRESS, INC.
120

W. 31st St., New

York 1, N. Y.

In Calif.:
In

Any disarma-

0ds

for

detecting

6253 Hollvwood Blvd., L. A.
Wash.,D.C.t 1010 Vermont Ave.,N.W.

underground

nuclear weapons tests.
pany

is

now

Research

$6

This

corn-

involved in just such

detection systems.

'<■

-

expenditures

to

came

share last year.The

per

that

will

and

National

cor-

with

compare

Obviously,

dialogs

inter-company

be most helpful in the

can

as

an

offer

security referred

to

to

sell,

or

herein.)

Bureau

Incorporated

Plants in France and

Italy give

I

.

Instruments

Texas

,

r

;

entry

.

to

earnings
.

are

over

favorable

the $2.50

Continued

area

on

Established 1913

„

the

evolving Common Market.

^

i

age.

Prospects

,

Quotation

International Telephone

to exchange electronic technology

space

.

become not onl>'
.

If
you
have completed
a
book-length
manuscript, you may be interested in
our
special publishing plan. Under this

ment program will involve meth-

data.

economy.

Instruments

.

no

YORK

its

"

(This is under

NEW

149 Broadway, New York 6, N. Y.

profit.

a

lower production costs and
research

Co.9 Ltd.

industry will continue to poration has agreements with IBM

,

25,is

Management is

Hwuritie#

semicon-

company did con-

diodes

and

soaring superheater.

have under discussion

we

REctor 2-9570




its

the

in

panding general

Tel.

This

light

Who among

extend in application and

England

exceeded

49

"We

tronics

during the past

American

^

These cautions in mind, let

levels.

New

instruments'
^uctor

listen to what management has to

accelerated

professional employees with their

ten

CO.

electronics, elec-

skilled

D A I WA

elements for government and industry. For example, it fabricated

about fifteen times higher than
** was te" years ago. The cash
dividend is small, 80 cents per
share per year, giving a yield of,
barely 1%.
■

and

of highly

factor in this earnings de-

was the building up of cornpetitive forces in the field of Texas

even at its field
discovery,
radar
terrain
depressed level, this stock is still analysis — all are activities of

shift

has

$15

be remembered that,

the

The

hit

..

as

textiles

offices

common

<

The current market rise has

Thus,

machinery and transporta-

hiring

Tel's
or

income.

from

equipment

The
Write

S.

per

a security which is highly volatile 000,000.
anc* n°t considered appropriate
Geophysics: Seismic testing,
for conservative investors. It must sounding the ocean depths, oil

one

of

Co.,

carried it up over the 70 level.

This

reversed

ahead

15%

machine tools to

as

find"

to

U.

emphasis

the

well

been

now

some

average

in

This

1962.

over

1945;

stock)

than

cline

temperature

lee.

Exchange,

stock

income

England income climbed to

point

a
—

by

$3.91

or

its

more

branch

SECURITIES

systems, microwave, radar, timers,

ag0?. A**™'* ™ bruta1^ TXN.

figures. The area's

greater

for

of

our

JAPANESE

its

(year

a"U,cs ®!,the 2f.0 level thf e years here looks interesting, especially

the

25% higher level in 1929 to

only

(Single Copy

1957

capita income advantage

Nev;

EDWARD L. BRENNAN

does not remember

to

the rest of the nation shrank from
a

England

the

on

• nj.ininunib, inc.

decline

personal

miiiion

level

to

Texas Instruments is one of the the nqciear core for the Pathm0re interesting potential come- finder nuclear power plant in
back situations on the New York South Dakota—first such plant to

capita income bettered

per

New

listed

Tex* .nstrumeets,

„„i

total

top

Mobile, Ala.

on

hit

1960

cision switches.
Nuclear Euel Cores: The
Members, New York Stock Exchange Pany manufactures nuclear

equalled that of the entire U. S.,

per

record

(Only $45

since

earnings

in

Yew York City

oast

1947

further

However,

the nationwide

bank & quotation

20%-

a

of

Tel.,

Investment Analyst, Hardy &

Between

region's

'almost

bv

0f

navigation

Stock

clined

ajso

with

gory

derlines

1957

the

Instruments

back

Orleans, La.-Birmingham Ala.

Direct wires

common

close

...

which marked the economy of the
area

peak

share

per

million

these

,

•

significant

earlier

$2.13

Texas

profit

land area.

in service.

a

shares.

opportunity to participate in the
future growth of the New Eng-

expan-

personal income
over

four

to

6, N. Y.

2 J 2 571-1425

York Stock Exchange, appear to and Control; Nuclear Fuel Cores;
offer the investor an interesting and Geophysics.

from

represents

or

ciose

the semiconductor

The-. shares

company

doubled

England

five years

$8,550,000

moved away from dependency

area

now

—

sistors

Tel.

for

operating

almost

an-

.,

rede-

well

augur

York Stock Exchange
Stock Exchange

Members American

HAnover 2-0700

tinue to manufacture

of

these

area,

moves

Members New

New

°ne-for-seven basis,

$1

than

Steiner, Rouse & Co!
.19 Rector St., New York

The last offering of common
shares was made in 1961 on a

commercial

more

City. (Page 2)

the original cost of the stock,

estimates that by 1975 the number

in

City, Mich.

Bay

—

With

The growth in

26, MICH.

of Bos-

involving

the 3.6 million

313 222-5012

Office

and

each

velopment

Building

962-3855

environs

comoany's telephones located

will

Exchange
Exchange

the

redevelopment

apartment

New

Members

at-

presently includes the planning and construction of some

sion

Midwest

vacation
have

-Edward

Inc.

Six offerings of new .common
shares on a rights basis since 1951
haye been wel1 received.
is an^cipated that future rights Qfferwill be made available to
shareholders from time to
Exercising rights affords the
owner a privileged subscription
P*"ice; selling nghts acts to reduce

city

the

MORELAND & CO.

and
area

Instruments,

ab*® record.

tronics, have established research

million.

QUOTED

the

Bought—Sold—Quoted

New

Brennan, I nvestment An¬
alyst, Hardy & Co., New York

y^ar sincc 1886, a rather respect- profjts

growth

professional

a

projects,

TRUCK LINES

cli-

elite, and
firms, particularly in elec-

many

49

ASSOCIATED

continuing

Total

dually provide a return of 4.0%;
dividends have been paid each

the

on

1962^ figure.

dividend payments of $1.90

most notable. The fine

are

facilities

The Nomura Securities Co., Ltd.

is

favorable

a

Co.,

L.

volume... and

^ producetrecord earnings

comparable.

total

England Tel. & Tel.

tracted

61 Broadway, New York

the

academic,

whole.

as a

England

&

City. (Page 2)

results showed^ P^r]^ share.
earnings to be 6% ahead of the
Major

capita

per

higher

In¬

Dept., Fed¬

garter

changes within the Boston

region

picture of the Japanese
economy

for

of New

both

and

creating

mate

in

Texas

American's

.1^63. Receptly released first

has

population,
industries, and

growth

New

There

services,

ferve

kind!)

of

new

income

income.
move,

JAPAN

opposite.

a

persons.

only

264%,

men^ showing a further improvemen^ *n Pr°fit margins. Total 1962
per share earnings were $2.43, a
gain of 9.3% over 1961; an exPec^ec^ moderate increase would

the

as

many

(the

resurgence

important

Opportunities Unlimited

by

the

is

accepted

truth

entrance

Write

par,-,

security

England

is

truth

real

been

IN

te^er-

issues. Therefore, in this vein, the

San Francisco

♦ -

•

its

by

Louisiana Securities

Over $1 -billion was spent in the m0st favorably with the very best
$a^
years to expand and im- 0f
competitors."
Prove
service; $140' million is
Enlarging though it may be,
budgeted for the current year, this is no tiny mite of a. corpora-,,
Continuing progress is indicated tion. In 1962, total sales came to
with, the .latest earnings state- $240,000,000 with net income of

facts

a

New England Tel's net inrose

York

ten

acceptance of new specialized
services ; aided profit -margins.

and

the

towards

company

statement

1231, 32, 33, 34

Chicago

•

Philadelphia

emotions

observer)

Telephone: 363-2000
212-571

is

securities

not

mine

"

Teletype:

of

is:perhaps

in ; the

often

even

St., New York 4

60 Broad

Too

past

Mit¬

—

Manager,

Research

Stonehill

erman,

for Ameri¬

the

Jay Bayer,

vestment

by 241%. Increased mechanization

;

what

not

true"

reflected

Exchange

Stock

American

f

.

is

%

come

(usually most readily available to

'

Member

Associate

■

"It

be

impressions

Established 1920

V •

-

-

years,

During

operating

New

122%

versus

Tel.),

can

Tel.

/UP

^ev^nueiS

City

&

growth in total

England

counts, but -what people

markets.

HANSEATIC

Tel.

saying,

true that

Y-C'-'O

York

Members, New York Stock Exchange

•

,

Research Dept.,

Federman, Stonehill & Co.,

serv¬

advantage.

your

Manager, Investment

nationwide

reliable

fast

and

contacts
ice

buy

to

if you are

"Hanseatic's"

•

England Tel. & Tel.

chell

MITCHELL JAY BAYER

trying

Alabama &

Selections

advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

usually find

Large block or small,

Week's

Participants and

in the investment and

You

Thursday, May 16," 1963

t.

for

for

page

8

Over-the-Counter Quotations
Services for 49 Years
46 Front
CHICAGO

Street, New York 4, N. Y.
SAN FRANCISCO

Volume

197

Number

6264

.

.The

.

Commercial and Financial Chronicle

(2003)

Bond Market Outlook for

3

CONTENTS
Thursday, May 16, 1963

The Second Half of 1963

B.S.

By Sidney Homer,* Partner, Salomon Brothers & Hutzler,

v

v

How

New

York

long will the bond market remain firm in

prosperity

at

reasonably

a

good

AND

Articles and News

City

rate

the

face

inflation

sans

of

and

Inflation and Growth Implications in
Analyzing
Stock Market Values
George W. Mitchell

undue

taxing of capacity? Mr. Homer's reply anticipates no sustained rise
long term yields with long governments staying in their range
of the past twoi years. If interest rates were to
rise, he adds, corin

porates and
than

municipals would be

government

bonds. Mr.

vulnerable to

more

Homer

analyzes

of

funds, and the changing market forces, to explain developments pre-empting the bond market as a business cycle indicator. He avers yields would be
substantially lower today were it

„

•

not for balance of

payments conditions, and comments

Federal Reserve departures from

Ira U.

Loans

"nudging" wherein corporates and

!

.Sidney

1

security

primary

interest

stocks,
who

solely
like

few

very

a

is

Taxes

in

business

terested solely

started to rise

question

and

who

many

try to be

bond

neu¬

tralists

Robert

Getting at the Heart

of Real Tax

Whatever Happened

more

today

is

rapidly.

how

9

COMMONWEALTH

C.

ATLAS CREDIT CORP.

Wertheimer

11

Lowell

Harriss

keep

Bond

eye

an

both

on

in

12

CORP.

Long-Range Planning?
Cohen

13

Most

a

is

nuisance.

rising,

discounting

future decline in

perity.

If

;

the

a

If

it

the

is

people

ac¬

present

and

or.

19

_

ing

bond

market

credit squeeze and

a

Only

come.

ing

is

been
be

can.

*

«

The

but

having for
market
in

countries

and

two

have

is

-

total

few
not

to

happen.

figures,
sound

which

like

I

provided

new

money;

billion

was

sale

of

new

was

raised

through
gages.

this less

than

and

sale

$24

provided
new

98%

return

outlook

the

Treasury

itself
for

.

and

.

You

of

and

it

share

a

to

is

competing
of

policy,

more

a

a

rates

Public

students

myself

the

19

Registration

Security

Salesman's

of Trade

Offerings

Washington

would

of

rising

have

been

The

Corner

and

have

been

a

of

the * money

included, who

normal

is

correct.
are

and

Twice

doubt

cyclical rise in
an

early

Founded

on

Park

Industry

(The)

York

1868




Stock

Exchange

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300

Newark

40

txcnangb Place. N. Y.

Teletype 212 571-0610
Direct

Chicago

Wires

Cleveland

to

15

St. Louis

Los Angeles

San Francisco

Washington

6

40

FINANCIAL

Weekly

Reg.

B.

DANA

D.

TELETYPE 212-571-0785
Chicago

Schenectady

Glens Falls
Worcester

h -Wwq h >

CHRONICLE

U.

S.

Patent

Office

COMPANY, PUBLISHER

Place, New York 7, N. Y.

CLAUDE

REctor

2-9570

to

9576

SEIBERT, President
WILLIAM DANA SEIBERT,

Electric

Treasurer

GEORGE

J.

MORRISSEY, Editor

that

interest
even

page

22

Every

Thursday (general news and advertising Issue) and
every
(complete
statistical
Issue
market
quotation
records,
corporation news, bank
clearings, state and city news, etc.). Other
135 South La Salle
St., Chicago 3, 111. (Phone STate 2-0613).

Monday

—

Corp.

Office:

B. Dana

Company

rights reserved. Reproduction in whole
written

Second class

.

or in part
permission is strictly prohibited.
postage paid at New York, N. Y.

SUBSCRIPTION RATES
MONDAY AND THURSDAY
EDITIONS (104 issues
United

other

States,

S80.00

per

countries

U.

S,

Possessions
in

year;

$87.00

per

and

Dominion

members

of

Canada

In

of

;

year)

per

Pan

$83.00

American
per

year;

year.

THURSDAY EDITION ONLY (52 issues

per

year)

United

Union

Nashville

2-yuuc

Thursday, May 16, 1963

prospect

Continued

some

PREFERRED STOCKS

Boston

ha

2

24

.....

You.

WILLIAM
25

market,

Spencer Trask & Co.

Albany

sMackie, Inc.

34

Market

COMMERCIAL and

Published

Union

BROAD

Singer, Bean

Philadelphia

Tax-Exempt Bond

In

25

28

Security I Like Best (The)....

without

New

27

Securities..

Securities Now in

No. American Life & Cas.

4

Governments......

on

Utility

Prospective

23

...

L

Our Reporter

All

Members

Franklin Life Ins.

17

economic

forecast

Today, however, there

year now we have

specialized in

SavAStop

16

_*

Copyright 1963 by William

have

Los Angeles

re¬

conservative

favorable

would

rates

For many years we

—

5

37

(The)^

Observations

axiomatic at any time in the 1950's

money raised in the

a

to

a

interest

market.
For almost

and

more

scheduled

monetary

such

$1

billion

of

Chicago

4

their expen¬

better balance of
payments and

Given

of

sale, of new mort¬
Thus, bonds and mortgages

of

—

credit standards.

through the
equities, $16 billion
the

find

argued,

,

New York

CHICAGO

Connecting Wires:

8

News About Banks and Bankers

bank

State

a

Investment) Recommendations

Funds

Security

a

YORK

a

interest rates in order to achieve

raised

through

is

.

Mutual

ing growth, will encourage higher

will

net

to

of

use

as

the

business

American

billion

Market

by

lieved of the necessity of
promot¬

a

Reilly&Co.,Inc.

NEW

24

Indications of Current Business
Activity

in

smaller pool of savings.
Finally, it

the

together
total

of

bonds,

'new

the

with $41

economy

and

will

is

the capital markets of the United

States

rise

Simultaneously,

with

1962

in

up

deficit

said

in

cite

hope

boasting,

less.

increase

inflations

To

cyclical

Consumers,

all

investment

early

an

expenditures

stepped

Treasury

wars

__i

40

From Washington Ahead of the
News.

flotations

a

J.F.

Direct

Field

Einzig: "The Pound's Gyrations"

many

lead

save

Euro¬

two

forecasting

considerable

v

been

of

1
18

the Investment

Dealer-Broker

out¬

an

years

ditures rise, will borrow

•

few

where

nearly

apt

two

(Editorial)

improvement and credit

are

credit.

we

has happened in the United States
or

period imme¬

.

claims, Fortunately for bond
however, nothing like this

men,

of

capital

and

years
7

».*v

has
a

discouraged

fixed

as

two
-

eliminated

pean

top

It

Commentary

vol¬

rising volume of bond

trouble

safely -ignored; 1

bond

business

American business will

dawdling, pokey,

a

soporific bond market such
have

expect

See

and Insurance Stocks...

Coming Events in

interest rates. It is argued that ris¬

American pros¬

falling,v, it is accused of discount¬
to

now

expansion, it is natural that

of

cused ..of

on

business

Sidney Homer

be

market

bond

they

We

Bank

diately ahead. With such
look

market

something

As

Cycle

forecasters

to rise for the

ume

the

often

Business

a

business

which

ssion

expre

goes),
must

as

differ only as to the
rapidity with

and

pure

simple (as the

bond

Rates

UNITED NUCLEAR

Regular Features

prosperity.

Indicator

stock

are

men,

rising

mar¬

kets. For those

who

of

GREAT AMERICA

the

market will remain firm

face

(A & B)

Progress

Sidney Koretz Traces Turnabout by Price
Stability Advocates (Letter to Editor)

Our

long

to

OIL

19

and

the

4-6551

FRANCHARD CORP.

v

Dillon

Morris

activity which lately has

in

bonds,

Douglas

Gap—

rising stock prices, firm to higher
bond prices, and a
high level of

myself

WHitehall

7

Modest Devaluation Would Cure Our
Payments

what some people may
call the best of all possible worlds:

in¬

are

Woolner

enjoyed

ana¬

STREET, NEW YORK

'

C.

of

WALL

Telephone:

Federal Tax Cut Means Lower States-Local

expects improving business will permit "less ease" by the Fed which,
however, would leave higher short rates and stable long rates due
to offsetting market forces—barring an all out boom.
gathering

H.

Charles M. Williams

; will rise, expects U. S. debt-rise will not force higher yields, notes
the narrowing spread between governments and
corporates, and

Any

Obsolete Securities Dept.

5

*

.now have lower yields than governments. The writer
another large mortgage year, doubts
corporate bond financing

lysts is apt to include many whose

3

Cobleigh

Are Commercial Banks
Competing for Savings?

municipals
sees

Get Our Bids!

Opportunities for Municipal Industry in Federal

-

significant

on

1

99

Chips—

into

go

Orbit

Sidney Homer
In the

and

demand for

-

to

Bond Market Outlook for Second Half of 1963

rising yields

the supply

If you want
PAGE

rising

COMPANY

other

States, U. s. Possessions and members of
$20.00 per year; in Dominion of Canada

countries

per

and

Quotation

Record

Postage extra).
Note—On

account

remittances
made in

for

of

foreign

the

PUBLICATIONS
—

Monthly,

W? V. FRANKEL & CO.

year;

$45.00

>

INCORPORATED

39
per

year

BROADWAY, NEW YORK 6

(Foreign
WHitehall

fluctuations

subscriptions

New York
funds.

American
per

--

year.

OTHER
Bank

Pan

$21.50

$23.50

in

and

the

rate

of

advertisements

3-6633

exchange,
must

be

Teletype

212-571-0500
212-571-0501

'

The Commercial and Financial Chronicle
4

who

OBSERVATIONS...

takes

for

works

even

Commission

had

First the
its

hold

to

ENFORCEMENT PROBLEMS

By Paul Einzig.

calling for dis¬

SEC's SPECIAL
more

.

by the po¬

troubled

be

he

rpptirfnh^e^ D^oble^^^Hl
be^imDOrtant

or

3h».n"»T1md^

I the

National
Dealers)

Securities

of

J,.

e

a

trend

R

<v-

*

,

Institute's

Law

discussion

weekend

panels of

Dealer Problems through

needs;

Cohen and SEC

H.

Milton

.

Regulation

course

Exchange Regulation

as

conscientious
and

laborious job on its rules

and

supervision of member firm personnel
vis-a-vis
the
customers,

tatives

bound

to

program

"Know

_

o

states,

rule,

in

part,
"Every member organization is

required through
ner

of

or

general part¬

a

officer who is

an

holder

a

The

importance of the Counter

Market

the

and

for

need

"(1)

factf relative

eVery

customer

cash

every

to

order '

every
y

margin account

or

ac-

carried by such organi-

cepted

or

zation

and

power

of

every

holding

person

attorney

over

any

ac-

the-early months-of this• nouncement of the election date.

the

on

more

.

difficulties,

handled

a

As, Specia! Study Staff Director
Cohen
reveals he

learn,

Gf

was

surprised to
busi-

over-the-counter

an

ness

growing

conducted

York

registered

by

more

proportions

is

York

non-New

by

of

the

organiza-

efforts

mum

of

the

major

regulatory

main

as

—

the

as

to

than half of the dollar volof all over-the-counter busi-

spoken

Statement

fieiH

Tn
"

of

lu

•

Funrl

re¬

word,

Policy
F
,

tvt

a

re-

JIr|lng
wpP^
ac

henpfit^

thp

I

tiafin

y
aS

LhehPH 0^ soll,cltef and^n"
'
other a^.rig
s as a service
butec

affirmin

-

profession

chandising
are

created

the

spoken

doubt

cation

over

rather

than

a

mer¬

grey

business,

areas

by uncertainties
word.
the

hinder

nrnnncol




Likewise

verbal

fair

over

of legal

use

more

imple¬

informal pro-

f

accomDlishine

effective

intra

accomplishing ettective intra-

industry disciplinary action. Con-

important and basic

an

.

.

ereeahlv ae-ain^t

nn

members_with the

and

communi¬
under

i

•

^

^

en

-i

civil

Deane.

Miss

Deane,

formerly with
B

J.

a r

t h

&

tivities.

White &

Premature Election rears

trading

plete

Angela Deane

invest-1

and

ment facilities, acting as Broker to
Brokers across the nation,
The New York offices are
equipped with latest telephone
control boards and ties into the;
home office network of private
wires to all major U. S. markets,
Active daily contact is maintained
with correspondents throughout

there the mid-west and south.

the assumption that

On

Co.'

provides code¬

IS

will be no general election for 12
months and possibly for 18
t
months businessmen were pre-

Gallagher Joins

pared to commit themselves to
investment projects, but they will

#

SPPIITTlIPS

V

M

hesitate to do so now that there
'
*
appears to be a possibility of an Robert Gallagher has joined New

Also, and more basically to real-

ize, is the lack of economic sanetions

with

which

to

implement

suggested

early election. But such hints are
aPf
nip in the bud not only a
Stock Exchange boom but also a

acti0n, which has long been loomianti-trust action
weapon

come

more

will,

of

a

in retaliation.

of

course,

threat

with

be¬
ex¬

pansion of reform and regulation.

ness

Blackballs Legal Complications

difficulty
.

.

of barring
""""'a

the securities business

a

with

over-

of standby arrangement with the In-

any

advisory field the busi-

ternational Monetary Fund would
encounter resistance on the part

geared

of France and Germany. As Mr.

cannot

But

relationship,

directly to

the

the

in

being

consumer,

in-

been

be so controlled,

from

salesman

strongly in favor of the ar¬
it

rangement,
We repeat: no amount of regulation

policing

Qr

be

as

prac_

fruitful aS invest0r educa

people

From

Comptroller

Currency

JAMES

remarks

before

Company

"The-Survival

meeting

of

Fund

so

easy

dent Mary

May

Free

its

G. Roebling)

of

1,

its

75th

to

annual

International

the

might

it

secure

many

next

not

on

Enter-

Presion

the

Anniver-

1963.

Banking is one clear example of
uauAing
uixe cicdi tJXdiupie oi
an .industry
in which the forces

be

the renewal of

arrangement.

thoughts,

second

On

however,

these

prior to his new association,
Gallagher had been in the investment departments of All State
Insurance Company, Investors Direcently

was

Vice-President

a

with United Improvement and In-

vesting Corp., New York City,
.

,

L. M; Heine With
H. Hentz & Co.
M.

Leonard

H.

Hentz

&

Heine, Jr; has joined
Co.,

Wall Street,

72

New York City, members of the
New York Stock/ Exchange, as
National Sales Manager. In the
past he was with L. F. Rothschild
& Co.

fears

Broad St. Sales

"

the

Trenton

Symposium
by

the

at

to

SAXON'S

the

of

(Chaired

prise,

sary,

s

J.

of

that

occurred

Monetary
the

QUOTE-OF-THE-MONTH

Trust

partment.

Per Jacobsson is known to have

membership.

vestment

occasion

The

In the

member of the new business de-

pf Mr. versified Services, Inc., and most

death

unexpected

The

or-

Per Jacobsson was a contributory
the-counter
industry the NASD cause
of • sterling's
temporary
possesses the effective sanction of weakness.
It is widely assumed
depriving a guilty
member of that
the renewal
of
Britain's

ganization is formed.

on

ing in the over-the-counter field;
is the threat of the accused to turn
to
This

trade

the hint

about the possibility of an

given

InH„«trV

individual"

will

action
f

the

™

Proposed differen-

i

both

I suitability the receiving end ascribing it to
^us," competitive motivation. Another
FS such hindrance to intra-industry

+

An¬

gela

publiciz-

ment hoped to gain by
indeed it
ing its intention—if ind
its intention to go to the country
in the autumn.- Quite obviously
the anticipation of an early election was bound to depress sterling. It also tends to discourage
the trade revival which at long
last seems to have made a start,

resuit of joint SEC-Industry dis- Exchange boom. Hence

transacting business

•,//

block is me nesitancy to act disathe hesitan
to act disa.

the

on

Miss

of

all trading ac¬

cussions last week.

the
In

mentation and

u

emphasized "suitability" structure

aA

Areas of Difficulty

;

t^111 broker-client stituting
t
^uaJ

relationship, centering

tomer's

•

exercisf cedure is the difficulty evidenced

i

the

over

ic

thp

do

in stocks.

Exchange,

hiatuses

inability
^

discipline

nf

firms

ume

Despite the energetic and maxi¬

just

Exchange

Stock

ness

representatives
tion."

e

ing cf Cabinet Ministers for the

insuperable

qualitative

both

even

accounts

t.h

management

regulation are en- quantitative midst the current tor- election in six months. Possibly York Securities Co. 52 Wall St.,
Browing intercon- rent of such material. These ele- the government wanted to pre- New York City, members of the
J?" be wQef" theJw° ™arkefts- ments of doubt are reinforced as vent the development of a Stock New York stock Exchange, as a

all

diligently

Supervise

under

Co., will direct

other

of

manager

seemingly

presents

't ■

-

.

ueLtt:y The St. Louis firm of White & Co..,

affled °r CMri6dbySUCh S'°Ck ^change members m New ^Sg™^ adv^l^ trade revival.
Exorganization.
change listed stocks; while
if the
"(2)

<£ OQ. UpellS
>■
'

nifonT1lty

to learn

due diligence

Use

essential

would

to-;..the/approaching//election

way

some

licity given to a weekend meet-

ties industry has about 5,200 people's money (and on his condealer firms (4,800 being NASD science).
members), and some 160,000 emCurbing advisers' advertising
ployees
(100,000
being
NASD ancj mail promotions, as this space
mp^h^r<3v
has detailed in numerous articles,

voting stock to:

the

on

trend. Legal liability as well as
nonlegal blame are likely to be
withheld when the score goes
badly in a "name" issue. .
if a Dow Chemical declines by
20%, the adviser is deemed to be
(and feels) blameless; the loss being "respectable." But let there
be a mere 5% decline in a littleknown issue, however laden with
long-term value, all hell breaks

of the securi- loose

Accounts." flung unlisted area

Exchange's

the

Customer"

Your

freshly

as

revised

its

Customer

and

"405,"

and

1960,

in

advanced

went

event, imposition of lia- declared purpose of discussing the
bility for advice-gone-wrong must election program.
It is a cornaccentuate
the
Blue
Chip-itis plete mystery what the govern-

tively tightly aligned New York
Exchange market with its 672
promulgated last January under member firms, 1,101 partners, or
the title "Supervision and Man- stockholders,
and 32,552 Regisagement of Registered Represen- tered Representatives;
the farin

enacted

it

lasted,

any

in the over-the-counter market?
For> in contrast to the compara-

its Rule 405,

This is epitomized in

facto,

post

ex

stock's price, irre-

a

Blue Chip-itis Accentuated

Exchanges,
is

noted,

durutfon

The immediate cause for sterlinS's weakness at the beginning
°* May was the fear tiiat after
ail Mr- Macmiilan will decide in
favor of an election this year instead of deferring it until 1984.
There fears received considerable
support by the ill-advised pub-

'

^ave naany loop-holes. But how
much more difficult will regulation
the "cooperative" or self
type as well as governmental, be

Admittedly the New York Stock
Exchange is doing a

have

we

of

/'conditions

overag

the

on

Jacobsson.

Per

Pther hand, the prospects memhers of the New York, Amer-;
of a Socialist victory at the next ican and Midwest stock Exgenera*
continue to piess changes, has opened New York
heavily on sterlmg*
'
'
offices at 50
Broadway

Spective 0f long-term value con'^derations or extraneous market

r

opu a ion

xpan e

Cohen.

F.

Manuel

Commissioner

the support from the

It proved to could ill afford to weaken the debut,v while f.enses of sterling at a time ;when

.early in May.

llVe comheilLlve

;

based,

clusjons
the

officials including the
rector

on

understanding

are

unfortunately tends towards con-

and high SEC
Study's di- must enlarge the grey areas.

lawyers

corporate

and/or foregoing
business because it has been solicited rather than un-solicited
involving loss of salesman's compensation consistent with a merchantiising rather than servicing,

York Pracfull-dress
of Broker-

by attending the New

tising

of the

demise

the

dlC

detriment."

client's

part are enhanced

approaching election and

of

*^d'th^'Sp^cSl Tea,ns that.-autumn-.pressure on ^n.,
proposing the !ferhn® ls ^hkeiy :to pe weaker W lllie
pi OpUblllg L11C |Unn 1n nthpV VPHTS. AlSO the

clldfGronp
UIUUp

OlUUy

11PW

proposals advanced by the Study tions, on or off the Exchanges, is ■ tween wrong.doing and honest
Group and approved by the Com- the remuneration system. Turning errQr -n forecasting sureiy constimission are c o m m i 11 e d. Such down an order as unsuited to the luteg another gray area. And this
our

of the
view

......

Statement of Pol. But the greatest bar to the opwhether administered bv the
icy; or by complete self-regula- timum
in practice, particularly Commission bv the industrv or
tion to which many of the current in
the self regulation ramificac0Urts the differentiation be-

on

initial

placency. lt is true the covering «,at,;sterling^would- .be.strongly

r ~ Another Gray Area/ A "

dustry adopted

doubts

in

of-short

be

be to impose legal and extra^leg-al durin

lied on.

the government-in-

funds through

said to revolve around

of a large, part, of the autumn defended during the critical per
.,\How mtich mote difficulty\vil-import.i requirements of dollars riod:that' wilt follow-.the an-

& Co.
alleged

r-DtfarHino'

mmvonroconfofrnn

mr—y—i

un-

remit

is

legal, procedure

-

Unfortunately recent incidents;

Association abuse, and the Reynolds
operating branch office incident of

.

IMF

recovery

where the SEC first won and then wards, making the market realize make "them , particularly :, neceslost in the U: S* Supreme (Court. that there was RO <,ause for com- sary. It is. safe to assume therefore

in ac---

•

'

and, then, subsequent improved second thoughts on the im-

minence

mscent..of_th.e two Chenery cases,

direct Government ad- enfs concurrent activities
rrtin^frafinn-hv qelf-reeulation bv counts
with other brokers
T
the-dealers.
*
.
"coopera-

courts,

and

drawn-out

long

certain

v

is done by

SEC's watchful eve- by

C

■

Such

"Know your customer", routine
also , may be sabotaged/by a cli-

whether the policing

!

«■;.

state-enttheory as to the responsibility The/firmness of sterlingweaker, were dismissed,vas and stands to
since reason that;France it Germany
of the salesman.April-was followed by a

r-;Y;-; '■;; Customer"

,

alarm

finally won out by changing
the basis of its action to a differ-

Sabotaging "Know-Your-

in the way of

tential difficulties

dip and

Sterling's recent

and

liability -on false factual
ments leading to losses,

delves into the Se-

one

Markets Study, the more

the

in

reversed

quently

THE
STUDY OF SECURITIES MARKETSy

INSTALMENT OF A SERIES ON

SIXTH

THE

NASD

Thursday, May 16, 1963

own

ciplinary action; then was subse¬

must

.

The Pound's Gyrations

active part, is well illus¬

an

trated by the Berco case.

elaborate hearings

curities

.

obvious

an

shop, even where the SEC

boiler

MAY

WILFRED

A.

BY

The

.

(2004)

.

Elects

<

0f

private

enterprise

subjected to

pHcit

public

a

have

been

high degree of

regulation.

The

ex^

ex-

perience we have had with pubiic
us

controls
a

in

this

field

teaches

significant lesson concerning

Lundy,V.-P.

CHICAGO,
rLundy has

Vice-President
Sales

makes

his

Richard

D.
District
Broad Street

—

of

Corporation.

Mr.

headquarters

Chicago

the hazards of regulating private

firm's

enterprise.

La Salle Street.

me nazdia

III.

been elected

office,

Lundy

at

the

209 South

Volume

Number

197

6264

.

.

The Commercial and Financial Chronicle

.

of

In The

Chips

18%

and

current

The

(2005)

high of 45%. The

a

quotation

stock

makes

is
a

1
'

to

By Dr. Ira U. Cobleigh, Economist

those

who

FROM WASHINGTON

38.

around

logical appeal

like

leisure

time

equities, and the food product in¬
A

swift

rasun^ of the expansion and earning power of a leading
producer, and efficient- national distributor, of snacks and con-

'

'

:

/

venienoe foods, Frito-Lay, Inc.L

dustry;

T)ie. story/of the company selected

today is

solid

a

saga

of success in the best tradition

of '

annually).

ing

-

Potato

■growing at

the

tionally,and

chip

rate

sales

of

corn

at

surely

build¬

;•

indicated

enterprise. -It "begins, fa&ter.Mt is felt
that, in particular,
with original investments- Of ab out
growth rate of Frito corn chips
$100 apiece, by two men-^-Elmer will
.accelerate in " the next five
Doolin- in San Antonio, Texas, and; ;
y:earsr due to potential •deraand for
Herman
W.
Lay 1 in. Nashville, regular and king-size Fritos, and
Tennessee. In the early 1930s both •the1 newer Frito
round corn chips.

fiscal

1963,

BY CARLISLE BARGERON •/.

velocitys.

attractive.

;

? sales?'*'of

Despite

probably around $160 million "for

even

American

Ahead of the News

.

•t:

substance";

unusual

is

lies

..

proven,

in

of

company

stature

The •'past

are

respect

competence

up > a

na-; Ahead

10%

chips

;

who

managerial
and

for' review-

and

all

necessity

the

of

.

talk

about

the

freedom

reduction

tax

a

the

lie

share?' ttet'HrL; fact is that this late in the session
the $1.50 area, and the possibility
there-is: still no tax bill pending

of

a

further

~a

per

dividend

increase.

Selling at* 25 times indicated
share

-

net,

seems

5

Frito-Lay

reasonably

before

per

common

appraised;

.

The

entered; the, chip;1 business^
'Future growth, should be fur¬ company
is
renowned " for
its
corn chipsAiow na¬ ther^
augmented, due to manu¬ vegetable chips, and -its common
tionally known, and munphed as facturing facilities established in stpck; may "well mature as a blue

bill' has

been

introduced.

tee has

Mx; Doolin in

.

the

the

American
Federal

concentration

spending

consequently no

House Ways and Means

men

and

of

massive

mental power in

Congress. No bill has yet

been drafted and

in

and

complement

The

Commit¬

all

on

kinds

of

govern¬

Washington. Big
big

each

Federal

more

people

spending

government

other,

social

of

the

for

government

spends

programs,

been

considering a series including
public
schools,
presidential recommendations. greater will it be in control

of

the
over

-

Fritos; and Mr. Lay .in yvpotato
chips of which in 1962, FritorLay,
Inc., offered ten separate brands.

England,

Scotland

The

companies,

went

their

nearly

30

ways

for

Frito

The

years.

in

new

with

Co.,

headquartered since 1939 in Dal¬

search

products which

existing patterns of

started,- duction

thus

separate

/

West

and

to

distribution

and

re¬

improve existing items

and test new ones is
in

fit

continuously

r e

West,

gi

concentrated
until

o n s

broadened

its

in

1945,

when

by li¬
censing other manufacturers (in¬
cluding
Mr.
Lay's ■/?. company).
H.

W.

Lay & Co., Inc., moved its

Margins

used

successfully

starting

last

in

fall,

is,

stimulating

existing

out

mands

of

using

the

South

technique; and
not

come

and

Southeast,

driver-salesman

a

by

only

producer

had

be¬

substantial

a

merchandiser

and

assorted

delivery

1961

snack

foods

its

on

of

and

major

$7 million

,

On

own

$44 mil¬

a

the

operating

Merger

.

did

not

live

to

Lay,

Inc.,

1961

highly

two

1961, to form

in

the

combined

(year

$127.4

these

1959,
en¬

Frito-

the largest snack food

processor

with

in

the

see

of

merger

terprises, in

eliminated

Aug.

side,

of

economies

many

and efficiencies in

since

manufacturing
promotion

products, under the Frito

of

name.

The company now has a total of

nationwide

a

work

of

have

recently

been

place

obsolete

facilities

warehouses.

New

net¬

plants

built

to

in

direct,

and

paid

are

mission

retail

on

a

basis,

food

team

products,

its

the

as new

drafted

ness.

■

•

When

the
in

but

selling

effectively
is
-

almost
to

a

con¬
re¬

merger;

the

plant

and

he

items

result,, the profit

with

the

by

1965.

an

D.

Williamson, .Chairman,

His

nia

for

around

well

an

as

assortment of other snack

new

competence in directing the com¬
pany's financial and acquisition
President

programs.
W.

Lay

food

salesmen
officers

is

foods

stew, tamales,
ghetti

and

business

all

the

Mr.

massive

one

gomery

Building,

National platform which declared:

member

"We advocate

Mont¬

followed.

be

So

committee which voted

solidating

Corp. of N. Y.

against such unusual procedure.

gance,

to accomplish

not

the

Constitution, all tax

must

House.

pretation

originate

Under

this

Other

sales

and

United

strict

means

less

City,

has

elected

Sidney

John

E.

Shantz

to

inter¬

"There

the

stand.

Virginia

love for the Presi¬

States

Treasury

as

Treasurers.

his

favor

the

money

"

that

the

tax

roll

stand

to

not many
let

me

'We

favor

growth

rency

continues

off

Federal

the tax¬

of

his

dangers

follows:

as

fields

back

cept

to

though

the

two years

who

of

10,000

benefit

where

trend

dividends.

3

in

and

15 cent

earnings

Cash

from

(adjusted)
1962,

in

and

dividends

24

cents

in¬

1958 to 50 cents in

currently

are

on

quarterly basis. There

for 2 stock split in

have

million

5% Notes, Due May 1,1983

share

a

risen

in

a

was

These notes have been placed privately by the

1961.

steeply

1958

to

from

?

$146.6>

A'

/:

undersigned.

/:/■? "/;;

1962; In the
per

to

same

share net

period, adjusted

rose

from

$1.29. r Capitalization

simple,

consisting

of

67

cents

is

quite

about

Harriman

million

such

as

in.long-term debt and 4,shares of common stock,

beef

of which

spa¬

management.

is

traded Over-The-Counter and has

about

Frito-Lay,

market

$1




a

billion

20%

is owned by

V
63 Wall Street, New
BOSTON

•

CLEVELAND

Inc.,

common

ranged, since 1960, between

a

Ripley & Go.

Incorporated

$8

CHICAGO
•

•

DETROIT

York 5, N. Y.

PHILADELPHIA

•

SAN

•

PITTSBURGH

•

'

is

low

May 10, 1963.

,

■

FRANCISCO
READING

,

of

the

all
ex¬

in the public

of record only.

final quote

enterprise

sources

the

a

necessary

The Boeing Company

stockholders

a

cur¬

from

works

than

from, and enjoy, the

of

sound

removal

public

$50,000,000

Al¬

less

from

maintenance

private

old, Frito-Lay, Inc., has

than

rising

is

merger

This announcement appears as a matter

been,

again

government

Its

impressive.

not
there

left standing.

quote

" 'The

coast-tohas

us

is

then

to be balanced at all haz¬

bought and

rate

there
but

on

of

Dealers

New

budget .and

of

widely

investors.

millions,

continues,

kind

the

become

sought,

by

The

is

can

with

are

relished

and

Inc.,

that

old

He continued with

Byrd's contention

greatest

of

cost

ards.' "

reduction

duck's.

a

we

Admittedly

Federal

the

sums

Senator

saving of

a

in the

ad¬

government

water off
is

of

extrava¬

what the platform said:

is

economist

of

expend vast

It

Assistant

arguments

and

in

payers'

W.

Gledhill, William G. Morton, Jr.,
and

The

25%

bu¬

and

eliminating

than

use¬
con¬

government."

with

that

the

All

while

up.

in

the

visers

York, 58 Pine Street, New York

talented

departments

and

red.

route

way

abolishing

reaus,

President

The Discount Corporation of New

men

by

to

10

going deeper and deeper into the

Street.

Discount

immediate and

an

drastic reduction of governmental

com-,

Financial Growth

212,151

(around

105

the

accounting,

Frito-Lay,

canned

potato sticks,
food

company,

research and

Her¬

knows

advertising.

snacks,

meatballs.

The- snack'

He

from

who

include

finance,

and

pretzels)

office.

investment banker with special

corn

(cheese-coated

time opened

same

office is in the Califor¬

,

convenience

action

this

legislation

special

Pacific

big depression. He

Under the

John S. Piper

counsel

our

bringing

has

I

4J/2%

do

strengthening

expenditures

3

relations

will

the

of

1932,

quoted from the 1932 Democratic

million, fQC-y,ear-:ended Aug. 31,

of sales, the line includes

mixes,

out

first

was

tax

dent's proposal to cut taxes while

Sales

.products-

account

a

of

means

no

added

are

70%

dip

a

us

Com¬

Senator Byrd put the matter up to

fi¬

investment

it

less commissions and offices,

the

As¬

nancial pub¬
lic

when

that

j oined

sociates,

Deal

on

passed it. Five

17

the

of

one

mittee wrote Senator Byrd urging

he

Streloff

the

of

as

the

at

House

the

and

ad¬

recently

form of government and

per¬

senator has

to

ex-

While sales x»f potato chips and

foods

members

-

„

Finance

hearings

before
bill

a

to

statistical work for that firm.

" L

chips,

legislation

counsel

hold

speaking

Virginia

himself

New

as

adminis¬

widen

$51.3

corn

vestmen t

busi¬

been

Senate

to

the

Just

creased

line.

-

been
of

ef¬

the

mittee

of

proclaimed by Roosevelt in

are

a

pahd sales

suade

entire

time to his in-

this

legislature.

by

Roosevelt's

he had embraced with enthusiasm

for

has

D.

impor¬

in

effort

forces

big

first New Dealers. Indeed, he said

Byrd.,

com¬

kind

This

automatically ; equipped
to

men

represent

not only markets

present

ing his

latest

described

Chairman

more

of

industry.

The
tration

devot¬

now

first

program

session of the national

of its

predecessors,
is

his

first

Ken¬

has. acted. That is the position of

pro¬

These

salary- and
and

one

placed

on

big

early days of Presi¬

Byrd,

University

Streloff

accounts

in-store

display.

largest sales force
the

driver-sales¬

for

and

tance

President

Franklin

Senator

gets

this still nebulous

on

which

nedy has

it

both

ministration.

be

may

before

but

coast.

responsible

its

is expected to reach 4%

pro.ucts

.

achieved

deliver fresh, supplies and

motion

Bulletin

Congress

in the current fiscal year and
may

re¬

1

is

3,000

service

final action

dent

when

Finance

the

Den¬

$4 mil¬

'

distribution

who

men

are

around

'

over

Call

So

October

in

still

tion

margin

popular

through

Committee.

later

Senate

in

much

expected

Wide

the

in

government got its

Senate must wait until the House

company

lion.

And

trend

start

his direct associa¬

As

Colorado and Louisville, Ky.
Capital expenditures for 1963 are
total

financial

ized

has terminated

ver,

to

as

neces¬

achieved.

snack

and

action.

This

government spending and central¬

an

advertising

48. plants

years

a

firm, and at the

man

-

33

be

the activities of the American

people.

ing and administration have been

and distribution and concentrated

and

Frito-

upgrading

amount

of- John

31)

duplication

some

facilities, led to

for

Consolidation

o n."

after

framed

it, will

reaches

it

here

SAN

ad¬

on

States,; : V The management team is highly
It is headed by Mr.
fiscal regarded.

United

sales

ended

i 11 i

m

i|

/ /

have

all

the

significant economies in purchas¬

Doolin,". who died

logical.-

been

siderable

.

'

Mr.

has

for

effect

before

get it before the House

to

sary

left the paper,

alignment

business.

com¬

vertising in 1962.

ficiency. There has

well, doing

Fritos

known. .The

over

de¬

opening

which

censee

as

Lay,

-

regional

in

Lay

annual

added.

Frito

account, but the largest Frito li¬
lion

and,

night¬

were

effectively

well

spent

pany

for

markets

less

are

Piper Opens

Counsel Firm

year

was

1961,

major

time television shows

Television

Atlanta, Ga^in the

John

will

the

to

are

be* July

Then

measure.

editor of the San Francisco News

Daytime network television

late 1930s, and expanded through¬

home office to

and

Management

it

distribution

will

measure

Advertising,

those

reports

it

committee

FRANCISCO, Calif. — John
S. Piper, who retired in June last

progress. *

Latest

that

pro¬

las, with plants in the Southwest
and

chip.

Germany. Moreover, the company
is
constantly" at work bringing
forward

.Hiitory of Two Companies

and

and

to

develop

natural

re¬

interest,'"

The Commercial and Financial Chronicle

(2006)

6

The

Tax-Exempt Bond Market

moderate

is

of

as

well

flotations

a

in the

Index

Chronicle's

Financial

mid

shows

offer-

of high grade

level

preselected list of 13
long-term
(20
years)
offerings
averages out
at a 2.925% yield
this week
as
against .2.926% a
Our

ings.

week

a

words, the
a dollar
the su-ength of new isother

In

ago.

market

went

bond on

bond

and in some disremarket lethargy in-

prices

$122,009,000

slow

the

by

government

better

gard of the
dueed

about

uo

bidd'ng,

sue

Washington Public Power Supply

issue and the consequent
offerings

System

Good Examplc

slight improvement

very

Blue List record total of

period.

bonds)

listed

as

May 14.

on

■

„

„

Buyers

Have

inventory than was formerly

the

custoirarv,
new

to, carrying

accustomed

become
more

of

appearance

a

record total of offerings nec-

essarily

reiuce3 the in-

and

diirinisnes

naturally,
less

becomes

or

apparent and then price in-

dicat.ons

backed cff some or

^are

terr.porarily withheld.

the

DeEpite

of

the

demand,

re-

cently ftrm markets fo; lcng-term

issues

Treasury

long-term

and

corporate bond issues have helped

•

been

bond

the

stabiliz'e

in

some

tjme t0

Urgent Need for

surges

the- Federal

intervals,

interest is

persuasive.

Elusive
The

narrow

for

■-municipal

small

profits

dealers

bond

his

and

of the

interesting bond market pe-

riods
also

among

one

as

has

the

s'nce

stepped

But

war.

has

it

wider

the

market"

vagaries that have been

periodi-

cally experienced

past by

in the

municipal bond .dealers.
The urge
been

.for profit has recently

expressed in many types of
The
most' commonplace

point

businessmen

up

"in

cut

has

for

for

general aware-

a

than

a

tax

re-

than Congres-

more

has

hearings

of the

year

general

a

been

accom-

pnshed to date so far as we see,

tlaie. a serious
crisis>~hs fast developing in the
.

„

sam*~

£erjeral area °f municipal and
state finance. A national tax convention, as we have suggested
nor

conventions

really

do

much

your

then

sells

the

ferences

and

larger

national

convention

issue

svndi-

state

for

buys

group

it

at

or

unless

you

the

issue

close

and
list

to

and

tacitly

to

local

be

believe

estly

character

this

Rate

on

taxation

averted.

that

yet

We

seems

earn-

something

must

be

a

Federal,

of

promul-

New

York, State

Pennsylvania,

Gtd.____

3.05%

3%

1981-1982

3.05%

sold at

2.60%

2.90%

1981-1982

3.00%

2.90%

(N.Y.,N. Y.)_ 3Y2%

1981-1982

3.10%

2.95%

3%%

1981-1982

3.15%

3.00%

3V4%

______

1981

3.00%

2.90%

_______

1981

3.05%

2.90%

1981

3 20%

1

3%%

___.—

3y2%
3V2%

__

1981

sS*

3!o5%

3%

1980

3.09%

3.03%

'

May 15, 1963 Index=2.925%




University..

Colleges, Tex

11:00 a.m.

University of New Mexico.

2.500.000

Wilmington,

1,595,000

N.

C.___

May 22 (Wednesday)
Community

County

3,140,000

1965-1980

30.000.000

1964-1938

Springfield S. D. No. R-12, Mo.___

1,750,000

1965-1979

7:30

p.m.

1,295,000

1965-1975

8:00

p.m.

1.273,000

1964-1992

Penfield,

Perinton,

Sch. Dist. No

Penn.

State

1, N. Y
S.

P.

-----

der for

a

1.60%

in ;

present balance

associates

.10,121,000

high bid¬

smaller issue of Niagara

to

yield

2.50%

balance

totals

Friday
there

in

1972, the unsold

$350,000.
that

any

of

sales

no

size

with the exception of $32,000 Key¬

Iowa

stone,

bonds. We

obligation

general
happy to

are

&

bid,

was

announce

made by Stern Brothers

Kane,

Cook & Du

4,905,000

1964-2002

3:00 p.m.

1,250,000

1964-1992

7:30

2,700,000

1966-1991

2:00 p.m.

2.400.000

Commission

1964-1973

Lynch,

Eastman

Co.,

Bank,

include

group

Pierce,

Fenner

the

Minn

1,250,000

Smith,

The

Ohio

Co.,

3.630.000

1963-1983

11:00 a.m.

Brunswick

1,170.000

1964-1989

11:00 a.m.

1,600,000

1964-1992

7:30

p.m.

1.000.000

1964-1939

11:00

a.m.

5,000.000

1964-1992

Noon

County, N. C._

Cherry Hill Sch. Dist., Mich._____
Colun bus County, N.

DeKalb

Co.

W

&

S

C._-

.

Revenue, Ga.

1,639.000

1964-1983

7:00

S. Dist., Calif.

1,532,000

1964-1988*

9:00 a.m.

Gregory-Portland Ind. S. D., Tex.

2.050.000

1964-1936

7:30 p.m.

Bldg. Corp.,1,850,000

1968-1994

3:00 p.m.

Springs,

Excelsior Union

Lakeland Sch.

La.__.____L

H.

Pales Verdes Peninsula Unif. S. D.,

1,500,000

Harrison

Weil,

Roth

&

and

go to press, a

$970,000 remains
A

Irving

issues

&

was a

of

public

headed
Co.

(State"

bid

importance offered

Co.
&

for

New York

(1994)

of Ala.

Board

p.m.,

10:00 a.m.

1966-2003

'

/

'>

1968-1978
1964-1992

11:00 a.m.

1964-1983

10:00 a.m.

1964-1982
1975-1396

11:00 a.m.
10:00 a.m.

1964-1983

10:00 a.m.
:

.

11:00 a.m.

2,145.000

of

Trustees.-

4.805,000

Noon

1965-2003

June 3 (Monday)
Carlsbad Mun. Sch. Dist., N. M.___

Louisiana

Univ.

State

&

A.

&

The

and*

account

Co.,

Ladenburg,

submitted

$25,000,000

Authority

bonds with

June 4

the

of

Port

revenue,

term

3.385%

Sch.

Cleveland,
DeKalb

bonds, offering
cost

came

a

3.4114%

from

Continued

the

on

net

S.

(Tuesday)

Harford

State

.

&

State

Tammany Parish

School

3

".;

District,

1964-1983

=11:00 a.m.

1963-2003

11:00 a.m.

1,950,000

1966-1993

10:00 a.m.

2,875,000

1964-1991

Parish-Wide

La.____________,

County,

Pa

(Wednesday)

Pa._________

syn-

Hudson

City Sch. Dist., N. Y.____

39

Nevada

Irrigation Dist., Calif

page

)

Parking,

June 5
Erie,

*

6,600,000

Underground

Westmoreland

.1965-1979 ' 8:00 p.m.

13.150.000.*

15,000,000

Commission
St.

,

6,000,000

Building

Commission

Ohio

'i-

1964-1983 ,11:00 a.m.

2,550.000

Md.____.__
Bond

'••k'T

a.m.

1,225.000

Dist., Mich

Ohio

County,

-

"y;:"!

10:00

1965-2002

3.280.000

Dist., Calif.

County Sch. Dist., Ga

Louisiana

net

a

Union H.

10:00 a.m.

1,250,000
1964-1973
•-"'A*

M

2,990,000

interest cost. A competing bid for
the

7:30

May 31 (Friday)
Univ.

Charlotte

banner day with

sale.

&

■Thalmann
best

a.m.

1964-1993

of

Beard

Higher Education)

Anaheim

jointly by Halsey, Stuart
Inc., Drexel & Co., Glore,

Forgan

11:00

25,000,000

Texas_____

Dakota

balance of

in account.

Busy Tuesday "

Tuesday
at

9:00 a.m.

1966-1938
,1964-1988

6.000,000

Houston; Texas
Houston,

p.m.

.

California

College

five

p.m.

••Kx- i

Anchorage, Alaska

Provident

Ohio,

we

p.m.

7:00

Dillon, Union Securities

Cincinnati,

Co.,

7:30
■

May 28 (Tuesday)

Merrill

&

p.m.

Counties

Page

Community Sch. Dist. #U46, 111.

North

members. of

major

winning

&

interest

net

Co. and associates.
Other

&

2.67%

a

Noon
Noon '

1964-1982

May 27 (Monday)
Development

Denham

in

unusual

was

were

1.60%

from

in

Coll

State

Savings

Falls totaling $910,000 as 2.40s. Re-

1964 to

11:30 a.m.

23,260,0001963-2002

Valley Center Mun. Water D, Cal.

Roseville,

and
was

V

Bldg. Authority

Yonkers, N. Y

Florida

syndicate totals $980,000.

Bank and

Central

Etc.

May 24 (Friday)

Corp.

yield from

Trust

p.m.

Harris

winning

the New York Hanseatic

8:00

11:00 a.m.

May 23 (Thursday)
Brooklyn Park, Minn.____
•

100.2799

of the

members

High

Dist. No. 218, 111

Puerto Rico Public Improvement-.

to

bonds

the

from

Harris

10:00 a.m.
10:G0 a.m.

Noon
10:00 a.m.
11:00a.m.

Northwest Missouri

The

9:00 a.m.

1966-1993
1965-1376

(Highway, Education &

Trust and Savings Bank account.

2.90%, the

1964-1993

1965-1989
1963-1972
1964-1989

The runner-

coupon.

to

1,153,0.00
6,000,000
4,372,030

Beach, Fla.____

La

im¬

public

price bid of

Reoffered

a.m.

3:00 p.m.

1964-1983

bid, 100.2599 also for a 2.70%

Other

11:00

1963-1975
1964-1979

3,765.000

York,

New

Co. and associates

came

1:00 p.m.

25,000,000

issue

one

(1964-1980)

2.70%

a

1,300,000*4964-1933

Health)

Cook

only

Falls,

&

1966-2003 '".11:30 a.m.

6.750.000

,

Dist., Ohio_

1,0.0,000

Mental

to fair.

$1,740,000

interest

•No apparent availability.

10:00 a.m.

•••;

Toledo, Ohio_____

competitive sale. The City

dollar

a

2.90%
2.80%

New \ ork, New York

1965-2002

competitive and

Thursday

2.90%

2.75%

(U.T.)

1,170,000

21,543,000

Teachers'

State

worthy of brief

are

been poor

3.05%

1981-1982

2.95%

Pennsylvania

•Chicago,' Illinois

3.15%

1974-1975

Maryland-*.

Pnila-elphia.

1982-

1981-1982

Los Angeles, California

which

tance

As
Asked

3%%

_____

________

New Housing Auth.

Cincinnati, Ohio

Bid

3V4%

_

State..

•Delaware, State

Baltimore.

Maturity

3%%

Jersey Hwy. Auth.,

v

;.

Fla._—____________

Tennessee

Co.

3V2%

Connecticut, State
New

competitive

at

note. Bidding for these issues con¬

con-

gated very soon.

State____

6:00 p.m.
•'

'

,

Highway Fund Revenue

Fort Walton

overly large, there were a dozen
of general market impor¬

MARKET ON REPRESENTATIVE SERIAL ISSUES

California,

Sch.

Gables,

Monroe,

issues

cost,

gain

coesn't

the

constantly indulging in

are

to

procedure

State Normal

Local

Coral

sale and while this volume is not

ce<Jure for the present,
We

"

May 21 (Tuesday)

Awards

sell

bonds

empt

second

an

This

Solon

$160,000,000 of various tax-ex¬

mifht have been a salutary pro-

dealers

cates.

"

Congress appears to be contem- that the local Keystone bank Santa Ana Unif. S.
D., Calif._____
4,000,000
plating such a straightforward bought this issue at 100 for a Secaucus Sanitary Sewer, N. J.___
2,160,000
approach to our manifold eco- 2.60% coupon and that Keystone Southern Illinois
University—!
10,500,000
nornic problems. Such a conven- will get its new red fire engine.
Springfield Pub. Bldg,, Comm., 111.
3,500.000'
tion, to be sure, would be time
Monday of the present week
consuming but it could have been was also a
May 29 (Wednesday)
light day with $1,800,well on its agenda by now had 000
Chicago Bridge, Viaduct & MuEuclid, Ohio, various purpose
the country's interest been alnicipal Building, Ill.________.___
5.000.000
(1964-1978)
bonds
the
feature.
lowed to emerge. In the interim The
Columbia, S. C.______:___________
3.252.000
group headed by McDonald
a moderate tax cut with a gesture & Co. was the successful bidder at Dallas Indep. Sch. Dist., Texas
10.000,000
-toward some budgetary economy a net interest cost of
5,815,000
2.665%. The Houma, La._

gotiated deals, is

rew

Illinois

there

future.

near

.

international

commitments in

possible

now

This past week has seen a total
of

offered
,.

,,

innumerable

on

Regents,

May 20 (Monday)

•

Colorado

to,

been

ne-

effort

Right

Federal income taxes,

more

necessity

im-

by

and

representatives

political

portant

expression, in the absence of
of

of

Kansas State University__

.

improvement, syndicate include Francis I. du
persist among influen- Pont & Co., Hallgarten & Co., and

pressures

effort.

part

the

in

coupon,

to

5.

Recent

up

business

salient

neither the Administration

months

for

Comprehensive

before, is desperately needed yet

Profits

stamped the period
least

3

trading range that

persiste 1

made

-

1

-

in¬

-

economc

sional

prcpriate

ha's

generai

A.

issue

Board

State

Kansas

jumbo issues advertised for

no

sale

on

continue

symptoms

vision. Little

back but at ap-

and faPs

are

C. J. Devine

Analysis

Tax

gen-

Federal Reserve. Interest in bonds

a

certain

While

;

serial

,

for

bonds

June

on

provement

come,

have

Treasury and the

sale

awarded

the memberissue accounts for

new

District

tion

for

ne3s

obligation

May 22. The,largest

of ;■ Niagara

reduce

ship

There

1966-1990

* 8:00 p.m.

1964-1979

2,000,000

2:00 p.m.

-

May 17 (Friday)

Sch.

However, the

power.

gressively

a

1966-1983

-

1,726.000

»

Ogden City, Utah

$57,200,000 Nevada Irriga¬

Last

broad;'

a

volves

has

of competition may pro-

market

by the deft cp-

yea**

the

cf

represent

that

distributive

progressively overcome since

early in the
erations

exception,

occasional

pressures

Downside

-erallv.

with

preSsures

for

"

10.090.000

(Honolulu)

initial retail and investor demand

continue to be best distribby investment banking

^al

lcck

present

investor

brcrd

feeling that large is-

our

gr0Ups

quiry for items on laden dealers'
shelves. Their interest in offerings

O.

Livingston Co. Tp. HSD #90, 111.

sched¬

tinued to be very

advantageous trad¬

an

ing position

institutional

the

places

in

buyers

G.

Puerto

scheduled

tentatively

interests of distribution.

uted

Although dealers have recently

,

Hawaii

this

issue

general

bonds for sale

May 16 (Thursday)

no

$30,000,000

involves

Rico

o

may

ge

largest

nnn

sues,

„,

the

The

uled

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

being

within

market

_

is

Larger Issues Scheduled For Sale
In

$500,-

be

to

issues

negotiated
for

I" this latter vein, on Wednes^ May 8, William S. Mcrra &
Co., b'dd'ng 3 /
o^nnn
^ghu.b'dd®L
$122'°00'0?0
Washmgton PiihlicPower Supply
Systemserial (1967-1986) and
term (1996) bonds. Circumstances
have e°n*Plred t3 '"hibit sizable
sales °f the bonds thus far and
more than S100,000,000 remains n
account Thus, this balance becomes at best a substantial ^cornfor one financial house
to effectively handle m the best
it

than

less

Thursday, May 16, 1963

.

.

.

t

(§706,772,500 state and municipal

cur¬

scheduled

appear

readied

competitive
market has shown no evidence of as this one, even unusually constrength since we last reported a sistent luck leaves something to
week
ago
but The Commercial be desired profitwise.
bond price. In a market as

municipal

and

total

There

large
state

as

Scheduled

to:al.

tentatively

as

000,000.

The

calendar

rently presented through June 30

DONALD D. MACKEY

BY

issue

new

.

2,150,000
1,345.000

57,200,000

1963-1982

10:00 a.m.
Noon
—_—

Volume

197

Number

6264

.

The Commercial and Financial
Chronicle

.

.

(2007)

banking
not

real.

By Sidney H. Woolner,* Commissioner
of the Community
Facilities Administration,
Housing and Home Finance Agency,
Washington, D.

to

the

The

cannot

Industry in Federal Loans

industry.

make

Federal

these

does

Because

less

any

and

because
mium

market

1

of

Federal

are

escorted

through the

of the

and

goals

In

for not

taking

dent

programs

Community Facilities Administration, and chided
advantage of the financing, refinancing, and

portfolio purchasing
opportunities resulting from the
Agency's activities. Pleading for an
open-minded assessment, Mr. Woolner
argues
the Government's
case for the work
done by the CFA; briefs
investment bankers on
how they can reduce
CFA's participation in
public facility loans;
and outlines, for
example, the forthcoming sale of A and double A
rated College
Housing Bonds said to be
particularly attractive to
municipal dealers. Mr. Woolner asserts CFA
seeks only a
secondary
position to the private

market;

confines

!

Credit

which

grams

impact
a

on

t h

d

n

those

work,

of

have

our

the

at

rector

advantage.

i

and

r

„

Many

to

explain

some

of

been

basic

our

ing

towns,
able

the

on

though they had

program

from

grams

two

than

our

I

was

as

appointed

Home

s i on e r
by
Ho using
Administrator

to

Sidney H. Woolner
1

During

want

acknowledge

to

that

period,
how

operative and helpful Washington

certainly have not agreed
occasions

on

policy

all

on

interpreta¬

or

tion of Congressional intent. This
is no more than should be ex¬

pected, for
tion

,

.

from

difference

of

opinion

And

One

where

area

Let

me.

500

66%

to

set

straight.

84%

This

law

under

or

—

locality is in

distressed
should

an

exception may
to

under

area.

I

though the

be academic, that
limits

do

communities

the

works

150,000 if

economically

even

population

apply

50,000

redevelopment

mention,

these

under

Under

public

statutory

provisions, the top
on long-term
loans

for

year is 3%%—with

3V2% author¬

ized

in

In

our

rate

smaller

meet

towns,

basic

needs

problems, obtain

and

public works expansion
more

nearly

larger

the

to

on

criminate

projects
towns

undertaken

compared

to

Significantly,
on

a

also

Listen

to

in

made

and

be done

can

economically

by

private enterprise.

I

as

cite

have

on

that

only

of the

few

a

such

ciate

of

The

work

of

the

new

civic center for the

Sewer

Committee

works

only

r

the

in

that

first

Acceleration

grants

75%.

Even

from

vary

the

^

This

leads

attention

of

of

condemn

minimum

would

sewers,

inadequate

a

project financed

under

completed,

to

supply,

for

participation
with

We

in

our

to

public
hold

rates

coupon

3%%

5%%.

public

specific

reducing

in,

now

to

the

our

facility

.

portfolio

a

varying from

As

of

facility

portfolio with

June

bond
an

30,

issues

outstand¬

ing balance of $100,000 or more
each, and bearing an interest rate
41/4%

million.
issued

States.

the

or

than

in

are

The

totaled

more,

More

half

the

balance

divided

of

$46.4
these

southeastern
are

in .three

almost
areas—

mid-west, the southwest

and

the far west.

This advertisement is neither
>

to

loan

of

ured
to

Under

the

that

finance
the

by the

meet

reader of the Bond

grants

will

the

as

debt

service

exempt

meas¬

This

ability

at low

charges.

circumstances

market,

only

from

or

any

Buyer must be
numerous

is

as

tax-

direct

a

long

and

on

50

as

available

the part of private investors to
take the initiative will
keep most
of these loans from
going

loan

to

for

facilities

college

private.

and

I
want
to
call
attention
to
another program that has an im¬

ties.

classrooms

pact

the

works

needs

nomical
CFA

ability of local

to

and

meet

in

an

planning

of

a

all

types

These advances

Academic

for

of
are

and

an

More than

of

colleges

nor the solicitation of an offer
offering is made only by the Prospectus,

College

70%

and

of

the

Continued

to

buy

any

on

of these securities.
.

vAh

tf".

iff

.

V

•]

tV

A. G. Becker & Co.
Incorporated

Bache & Co.

u

Johnston, Lemon & Co.

Gooilbody & Co.

Shearson, Hammili & Co.

Waiston & Co., Inc.
.

eligible

universities

Lighting, Inc.

facilities.

as

are

have

applied for loans under this pro-

being

offer to sell

The

facili¬

such

laboratories

un¬

'

dining

Housing Program

the

public

service

facilities

Sound Loans for

eco¬

manner.

program

advances
■

gov¬

public

orderly,

efficient

administers

interest-free

their

other essential

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

May 10, 1963

as

infirmaries

Price $9 per Share

Allyn & Co.

are

colleges

housing and

such

unions,

:

A. C.

period

excluded.

on

ernments

(No Par Value)

healthy refuse disposal, and other

a

accredited

150,000 Common Shares

to

program

Funds

years.

universities

related

halls,

bid

interest rates—the current

lending rate is 3V2%—for

and

failure

the

has become.

program

non-grant

project,

community's

these

be

currently *' favorable

Halo

large

pick and choose loans is the
lender's privilege. But no one

this-

few

advertisements, how universal the

each

works.

we

To

very

Today

contaminated

water

hazard

1952, when the

even

population

fi¬

and

knew much about the
program
realized its potential.

Act.

50%

I
in

;

our

local

aware,

needed

invite

bankers

opportunities
loans.

to

me

Heights; Red Oak; Buf¬
Gap; Seal Rock Water District.
cannot

then

are

from

Program.

guess

program was

facility loans stems from
grants being made under the

These

City! of

examples

The CFA also is
responsible for

Loan

in¬

participation

Works

two

that

entirely

the

Public

on

extensive

administering the College Housing

opportunity for

your

progress

and

private sources.

Security
other

and

projects

nanced

Grants Provide Greater Loan

The

are

Metropolitan

how this program of
planning
advances
has
expedited
public

on
the loan on reasonable
terms.
That is to the public's
advantage.

creasing

District,

Chicago

private

as

Denver

States in which these

appear:

newly

of

portion

names

hame

pay

can fully appre¬
advantages of this pro¬

native

bonds

are

to

plans,

the

gram.

plans

funds

greatly enhance the security be¬

would- wager

can

for

refinancings

before

without

hind

the first

few

a

I

and

com¬

whose

purchased.

project

drawn

after

and

sounds

communities

works

a

1962

vigorous

the

Americana
of

inadequate

rates




effectively

occasion.

malodorous

small

our

supplement to what

the

a

public

We

accept the continued challenge to
use the Federal resources
only as
a

who

even

loan.

can
condone large discounts and
policy in this program high interest rates
and dispropor¬
to give private investors
full op¬
tionate fees for small communiportunity to participate in the 'ties. I
realize
that what I
am
.financing of these projects. To do
describing here represents only
this we have determined
that a
the
"fringe" of the investment

It is

by this illustrious committee.

Chicago and Denver

awarded to

was

petitive bidding than

or

worthwhile

available to larger communities."

might

we

lender

more

segment

of

the

succinctly

known.

are

imaginative

Housing and
Public Facility; Loans programs
have always been guided
by the
so

the
can¬

be put
to, vote until plans
completed and probable costs

not
are

the

College

principles expressed

pos¬

plan

have struggled to
community formulate the
financing of a necessary public

capital is willing and able to take

re¬

it
to

created

fully employed."

the

second Charleston

which

private

much

We

terms

by

a

(I

Charleston

loan commitment

falo

Prevailing market
Congress said, "dis¬

against

be

equally

loan—in 1961—was to

one

notorious)

loan

their

those

of

communities

re¬

public

ahead. They help to break
impasse of a bond issue that

help

•;

such

are

planned

started, make

for

Those

private
to

are

sible

size

Financing

made

is

the

purpose until such time

be

which otherwise would

sources

not

use

That

advantage.

advances, which

when

Cites

public

efficiently; and (3)

increase the total

credit.

of

Kennedy's

order

not

paid
works

Elk Run

growth

for

cities.

rates,

equal

that

hard-pressed

credit

could

These

of
varying
country.

the

on
Federal
Credit
Programs,
which is to provide Federal
loan
assistance for a desirable

purposes

Ohatchee; Pine Level; Red Boil¬
ing Springs; Beechwood
Village;
Equality; Bald Knob; Mud Lake;

rate

intended

as

in

social

public

be

increasing volume

carry out the recommendations of
President

im¬

allocation.

resources

otherwise

achieved
to

of

to communities under

well-known

towns

areas.

communities under

population

were

10%

this fiscal

establishing the interest

formula, Congress
to

interest

redevelopment

say

eligible

accelerated

program.

not

communities under

a population over
50,Needless to say, that was the

now

by

the

substitution

viewpoint,

private markets;

promote

1962,

city with

a

confined

localities

population
the

is

program

to

were to

Only

record

Formula

about

10,000 population

000.

Rate

am

5,000 population
>
-sly-'.98% were to communities under

CFA.

;

;

.

Interest

I

bor¬

our

population

appears

the'

figures

were to

96%

by

been

population

1,000

more

try

The

2,000

administered

in

from

to

ever

throughout

borrower's
-f,.
'r £ \

would implement the avowed in¬
terest of the Congress and wduld

reduce

or

arising

private
interest
cost.

profits

in

communities

They help to create a
reservoir of planned
public wOrks.

the

From the Federal
Government's

follows: '

remove

•

are

bankers'

pro¬

Opportunities for Private

cite may occasion
surprise. Of
all the loans we
actually made—
28% were to communities under

discussed

there

credit

as

influence

which

,.v

have

for

Gov¬

private

to

heat than light
has been the Public
Facility Loans
program

who

rowers?

without recrimination,

to have been

Gov¬

Primarily to Smaller
Communities

honest

an

This

bonds subject

.

of

Financing

often the best solu¬

so

comes

to
gaps

to

to

Loans Made

have been in
sharing their knowl¬
We

and

Agency.
of

I

co¬

us.

Housing

purchase by the Federal

staff and individual IBA members

edge and experience with

the

Finance

bidders.

(2)

Both

ernment were awarded
to

•

Weaver.

to

that 44%

means

C.

stated

of economic

approved loan

agency.

-

Board

1

even

compared to only $24.5 million

awarded

CFA Commis-

Robert

an

Council

F'ederal

were

"(1)

resulted in the award of
$19 mil¬
lion in bonds to
private investors

years

since

of

credit

During the nine months ending
March 31, 1963, this
policy has

slightly

more

Reserve

criteria

have

market,

the

in

lower

to* the

through

their financ¬

private

is

There

of

ernors), the basic objectives and'

result,

a

That

Chairman
of

rate.

obtain

Bell,s

-

Heller

Federal

lending

as

to

policies.
It is

lower

our

Programs

Economic Advisers, and Chairman
William McChesney Martin of the

loans

at

us

,

.

David

Walter

*4% higher than the
Federal rate, is to be
awarded the
bonds in preference to
loans by

bankers

municipalities

(consisting of Treasury Secretary
Douglas Dillon,-then Budget Di¬

private bid,

greatest

investment

e

ex¬

pro¬

Committee

accepted

perfections

opportunity to

briefly

premiums. But that would
not be
the best public
policy. We prefer
to have these small

Report to Presi¬

Credit

used

by

prior

at

Kennedy by his
Federal

.

pre¬

tunities for private
refinancing.
We could sell issues
from our
portfolio
in
today's
market

become

critically urgent.

plain

recent

call

retired

are

market

on

to those smaller
communities neglected
by the investment industry;
hopes its partial
grants for public projects and
planning will induce local and private
participation; and venture into college
housing loans is as sound
as it is
I welcome this

the

the

oppor¬

v

.

loans

by

feature, and

maturity, our Public Facility
loans portfolio offers
many

Program
Investment bankers

financed

call

waive

we

if

issues

the

to

little-known

communities.

all

contain

us

responsibility

reasonable

a

small

Criteria

C.

this

Government

abdicate its

provide

for

But

problem

7

page

38

8

The Commercial and Financial Chronicle

(2008)

Steel Corp. Ltd.—Analy¬

Algoma

DEALER-BROKER

.

Broadway, New York 5, N. Y.

sis— Royal Securities Corporation

INVESTMENT LITERATURE

TO

is

analysis

an

Also

of

Price

Brothers & Co. Ltd.

Lawrence H. Douglas

William

15

& Co., Inc.,

New York

Street,

5,

New York.

cussion

Companies

—

Magazine, American S'tock

sis—New

6,

Exchange Building, New York
N.

articles

Selignman

on

Latz,

&

Selected List—Revised In¬

dex—Bache & Co., 36

Western

Lines,

General

York

review

Over-the-Counter Index

son

the

Banks and Trust Companies of

States

Comparative fig¬

—

for first quarter—New York

Corporation,

Broad

60

Street, New York 4, N. Y.

Institutions—Report—Draper

Dobie

&

Ltd., 25 Ade¬

Company

1963

for

Securities

Booklet—Nomura

Market

Co.,

available

studies

are

Takeda

&

Street,

reference

in

the

Plate

Wilcox—Report—

New York 5,

New

Plaza,

New York

New York

N. Y.

50

Street,

Congress

Mathieson

Olin

Chemical.

appreciation—F. S. Moseley

Co.,

and

E.

W.

Bliss—Report—Pur cell,

Graham & Co., 50 Broadway,

Mass.

bulletin

Wall

New

appreciation potential.

Norfolk

Street, New York 5, N. Y.

Small

Braun

Companies—Review

Loan

The

with

particular reference to Dial
Finance Company and Family Fi¬
Corp.

nance

Street,

The

—

East

207

Company,

Milwaukee

available

Connecticut

2,

Light

&

Also available is
secondaries

10

on

York

A,

SUndstrand.

on

Fruehauf Trailer

Co.—Analysis^—
Broad¬

New York 4, N. Y.

Futterman

on

of

the risks at¬

supplier of pro¬

any

sponsored; by governmental

agencies. In addition, the company
has had serious problems in key

Nevertheless, man¬
- to
know' how
to move in new direc¬

•

and when
tions.

.

Research should keep Jthe

company on

science:

the New Frontiers of
travel, molecular

space

•

Libaire, Stout & physics, laser technology; -micro¬
York 4, miniaturization;; automation, Nu¬
.

Broadway, New

50

available

Also

Y.

: : :

Corporation—Analysis

—Eisele & King,

N.

purchase

that

agement ; appears

J. R. Williston & Beane, 2
way,

services.

Also available are product lines.

5, N. Y.

comments

randum

is

and seis¬
i
r

cleonics, oceanography

memo¬

a

Leader Durst

on

mology.

Corp.

Michigan.

Also

Building,

Co.

0

Company

Analysis

—

Ross,

—

Knowles & Co. Ltd., 105

Adelaide

Street, West, Toronto 1, Ont., Can¬
ada.

Merger,

'

.

.

&

Street,

.

Also

Active

&

son

Co.,

Corporation—Anal¬

McCuarg- Bros.,

available

•

Road-

1335 Bay
Canada:

Ont.,

analyses

are

Power

Lakes

Com¬

Railway

Toronto T,

Corp.,

of

Ltd.,

Also

available

is

memorandum

Bloedel

&

,

on

Powell

River.

ref¬

Airlines,

Pan

to American

erence

American

World

Equipment

Company—An¬

Curtis, 25 Broad Street, New York

SOUTHERN UNION GAS

4, N. Y.

LIGHT

&

TELEPHONE

Also available

are

com¬

ments

on

tillers

Corp.-Seagrams Ltd., Ken-

necott

KEWANEE OIL A and B

Borg Warner Corp., Dis¬

Copper

Corp.,

Lighting,. Pittsburgh

Glass

Derivative

Tobacco,

Roller

Liggett

Bearing,

Coast

Gulf

•

.

•

'

■

0

Troster, Singer & Co.
Members New York

Security Dealers Association

Trinity Place, New York 6, N. Y.
Teletype 212 571-1780; 1781; 1782

&

Timken

Armstrong

and

Leaseholds

South

A.

Hanna

Lamson

Inc.—Re¬

Jackson

&

&

randum

on

Co.,

Pine

80

Street,

Also available

5, N. Y.

analysis

of

and

Minerals

Chemicals Philipp Corp.
Loeb

&

Watt

e r-

and

Lehman Brothers

on

May»15

two bids

the better of

submitted

$48,755,000 'of 'State of New
Bonds, due June 1,

for

York Housing

2013, inclusive, The group
bonds as 4s,

1965 to

bid. 100.0089 for the

set¬

ing'

1965-1968;

and

2004-2013

for

1987;

1978-1984;

-

the

Bonds matur¬

will

not

be

re-

offered.

Water

Admit Three
Ohio—On June

CLEVELAND,

1

Ball, Burge & Kraus, Union Com¬

members of

Building,

merce

the

changes,

Street,

King

•

Co., 731 North

Street, Milwaukee 1,

Gas

&

Wis.

analyses

are

Manufacturing

Louisville

.

Company—Analysis-

available
r

:

...

Gunn, Walter J. Carey, and Rich¬
ard J. Cook to partnership... Mr.

7

Robert W. Baird &

Also

Ball, Burge to

New York and Midwest Stock Ex¬

East, Toronto 1, Ont., Canada.

of

and

Co.

Electronics.

&

Electric

Co., Ford Building, Detroit 26,

Loyal Protective Life Insurance—
Memorandum—Paul

Co., 31

Milk

D.

Sheeline

Street, Boston 9,

Massachusetts.
Manhattan

Shirt

Co.—Memoran¬

Allyn

&

Gunn
of

;

will, admit

Clemens .E.

Carey are officers

Mr.

and

-

Gunn, Carey & Roulstonj Inc.,

Mr.

Cook,

recently

who

joined

Ball, Burge & Kraus,. in the mu¬
nicipal
with

department,,formerly

Wm. J.

Mericka

,was

& Cq".„ Iuc.

Com¬

Michigan."

&

due in 2003.

1969

the

for
3.20%

to

out

Limited,

Louis Allis

&

from' 2.20%

yield

maturities

Limited—Analysis—Watt

Illinois.

Electronics.

Coca-Cola—Memorandum—P

-

managed
by The First National City Bank

—

West

141

Johnson—Analysis—

&

New York
an

Co.,

Boulevard, Chicago 4, 111.

S'tearns

is

Chi¬

Street,

Memorandum

—

Bros.

Salle

memo¬

a

Publicly Offered
An underwriting group

4, 111.

cago
M.

Salle

La

South La

aRd

'•

bonds

C.

Co.

Housing Bonds

Key-: ting a net interest cost of 3.0421-%.
Myers,
Reofferirig prices are scaled to

Cork.

dum—A.

Railroad

•

Suppliers,

Seagrams,

-

cific

Wanted

New York State

,

Corn

Pacific

Plate

begin.

more

once

may

Airlines, and comments on' 3%s, 3.20s,' 3.10s, 3 s and 2s,

United

Co., Unilever N. V. and Union Pa¬
Block inquiries

and

Airways,

pany—Analysis—Watling,Lerchen

alysis—Paine, Webber, Jackson &

INTERSTATE MOTOR FREIGHT

of

analysis

an

Singer

Clark

Engineering

the Air Lines with particular

General Telephone

a

MOSLER SAFE
G. D. SEARLE

Calif.

Francisco 4,
Aircraft

Worts Ltd. and

MacMillan,

ETHYL CORPORATION

#

Montgomery

Ltd., Iliram Walker.Gooclerham &
•

Meyer-

Eubanks,

216

Street, San

M

Pacific

Industrial Acceptance Corporation

Trading Room:

WESTERN

Greatamerica

.

...

Canadian

Brokers and Financial Institutions

on

Johnson

Chemical

Limited

26,'

Detroit
~

Canadian

on

*

Corn Products Company.

Steel—

of

Co.
*

Also available are com-',

ments

208

and Geo. J. Meyer Manufacturing

&

—Report—Rittmaster, Voisin and
Co., 40 Exchange Place, New York

port—Link, Gorman, Peck & Co.,„

Extrusion

Penobscot

Power

with

Study—Charles A. Parcells & Co.,

Michigan

Wis.

a

Engineering Company and

Cold

Milwaukee

memoranda

are

4, N. Y.

Great




tendant

New

Street,

Wall

74

first quarter in his¬

any

stock involves

TXN

grams

'

for

obvious

is

Street, New York 5, N. Y.

Distillers

Bos¬

randum—Gude, Winmill & Co., 1

Street, New

HAnover 2-2400

for

marine

in

Industries—Memoran¬

Inc.,

The

tory and included major business

5, N. Y.

nolds

Car,

can

appreciation and

and

Strat-

Briggs &

on

Selling of Stock Options—Memo¬

For Banks,

74

that

Co., 80 Pine Street,

Ex-cell-o^Commehts-rr-Walston &
Co.,

$2,455,000

year.

$118,000,000. Dol¬
new
contracts in

over

volume

It

Pine

last

geophysical exploration exceeded

,

National—Memorandum

on

Also available

4, N. Y.

comments

house

our

ord levels:

lar

Buhl

Corporation,

—Estabrook &

to

increase

an

$2,411,000

contract backlog moved up to rec¬

Building, Detroit 26, Mich.
Diamond

Grumman

y Bestwall Gypsum — Comments —
v'Herzfeld & Stern, 30 Broad Street,

and

Aldens

reports

pany—Analysis—Doherty

in

from

Also
Rayonier, Corporation :*—• Analysis — Ho r nblower & Weeks, 1 Chase Man¬
Copper Range Co.
hattan Plaza, New York 5, N. Y.
are

with

highs—H.

Stocks Currently

Michigan

ysis—Stewart,

York

ice, Minerals & Chemicals Philipp

Western-Nickel

on

income

12 for
&

Market—Stocks

on

Street,

tem, Marathon Oil, North Ameri¬

Wisconsin Public Serv¬

comments

&

Inc. and

1

Company Inc.,

on

Broad

18 companies chosen

Also available are

N. Y.
on

Babcock

25

York Shearson, Hammill & Co., 14 Wall

Also available is a

N. Y.

Co.,

5, N. Y.

ton, Interstate Motor Freight Sys¬

Securities

their

Hentz & Co., 72 Wall

&

Newborg

are

for

York, Inc., Ill Broad¬

below

showed

William

5, N. Y.

Trends—Study— available

Manhattan

Comments

New York 6, N. Y.

Laggards

Wall

37

Review of Recommended Issues—

Bridge-

to

Tire—Yamaichi

Co. of New

Co.,

Commercial Solvents.

Mitsu¬

Industry—Analysis

particular

Lines—Analysis

&

Synthetic

and

F. Hen¬

15

Street, New York 5, N. Y.

Co.,

■

Busch—Memorandum—

&

Street,

Hutton

F.

ton 2,

Natural

v: -A® i;'": : ■ AA:;:

Neu, 120 Broadway, New York

New York

Com¬

Paper—Shields &

memorandum

bishi Estate.

Japanese

Reynolds

Oppenheimer,

—

Anheuser

Virginia

West

44 Wall Street, New

York 5,

Glass,

Kogaku,

Nippon

Camera,

Products;

Pont, Gen¬

5, N. Y.

Industry^-Memo-

Paper

&

Chase

—

ufacturing, Isuzu Motors, Minolta

and

Report

and

Yawata Iron & Steel, Ebara Man¬

reports

Front

46

Railroad Merger

Spinning,

Asahi

Chemical,

Inc.,

over-the-

35

5, N. Y.

Kirin

of

Kanegafuchi

Co,.

stocks used

particular reference Hirsch

pany,

149

Ltd.,

Co.,

i::f W:

■'

v;

Schrijver

N. Y.

Rayonier

Pulp

Broadway, New York 6, N. Y. Also
Brewery,

Amer¬

IBM, Minnesota Min¬

American Export

Jones

-

Corn

;

Manufacturing,

*;

.

to

—

Review

—

Securities

York 5,

&

Pulp

E.

selling

Dow

National Quotation

Inc.,

Bureau,

Market for

the Japanese Stock

way,

—

New York 4,

1963.

stone

the

and

period

year

61 Broadway, New York 6,
N. Y. Also available is a booklet

Japanese

Also

Y.
on

Tobacco, Sears, Roebuck and Tex¬
aco

&

We have in Texas Instruments
Georgia International Life Insur¬
Street, New York 5, N. Y.
a
far-traveled
voyager,
ance—Memorandum—The Robin¬ stock
in American Photocopy — Report —
penetrator of the upper realms
Colby & Company, Inc., 85 State son-Humphrey Company, Rhodesthe
National
Quotation Bureau
and the nether regions. This is a
Haverty Building, Atlanta 1, Ga.j
Averages, both as to yield and Street, Boston 9, Mass.
stock whose long day's journey
market performance over a 23- American Smelting & Refining— Great Atlantic & Pacific Tea Co.

Ltd.,

Rubber

industrial

the

Myers,

&

randum with

Economy

Japanese

Daiwa

the listed
in

industrial

counter

Canada.

on

Folder

compari¬

used

Averages

Street, West, Toronto, Ont.,

laide

—

up-to-date

an

between

stocks'

ing

Circular—Edward

derson

2

Net income for first quarter

1963.

,

Canada's Banks and Other Finan¬
cial

—

Cyanamid,

American

eral Motors,

Schlumberger Limited.

of

Twist Drill Co.

ures

N.

comments

Diamond National, du

Also available is a

Steel
Ford

5, N. Y.

showing

Hanseatic

6,

York

are

Can,

Bristol

Co., 120 Broadway, New

&

Inc.—

Pharmaceutical

&

dum—Penington, Colket & Co., 70

Comments

—

& Co., 61 Broad¬

ican

Motors, General Cable, and Union

United

available

Continued from page

Vitamin

Engelhard

'A VV

Ltd.

New

way,

Whirl¬

American Telephone & Telegraph,

child

Air¬

Motors,

on

Air

United

Stocks,

ten New York City
Laird, Bissell &

—

I Like Best

New York.

memorandum on

a

James Oliphant

011 Stocks—Review—L. F. Roths¬

Wall Street,

Also available

N. Y.

comments

lines,

Aluminium

of

reviews

are

5, New York.

New York 5,
are

N. Y.

Meeds, 120 Broadway, New York

Hotels Corp.

Bache

Stocks

Bank

Knott

and

Corp.,

Supply

tive figures on

Hos¬

Standard Metals Corp., Ipco

pital

available

Chas. Pfizer Co.

,;

—

Loeb, Rhoades & Co., 42

Street, New York 5,

pool Corp. and

City Banks—Compara¬

New York

Review

—

Arlan's Department Stores,

Hanseatic Corpo¬

York

ration, 60 Broad Street, New York

Also in the same issue are

year.

Bonds—Analy¬

Marine

$2 per 4, N. Y.

cents per copy;

Y.—25

Wall
Also

Merchant

vestor

Carl M.

Pacific,

&

& Hudson.

and Delaware

Investor"—The American In¬

can

Island

Rock

Chicago

Dis¬

May issue of "Ameri¬

in

Thompson

Cross Co.—Memorandum—First of
Limited

Aluminium
Auto Accessory

& Co.
Inc., 70 Wall Street, New York 5,
Cove

Industries—Memorandum-

Allen

MENTIONED WILL BE PLEASED
THE FOLLOWING LITERATURE:

PARTIES

INTERESTED

SEND

Canada.

Que.,

available

FIRMS

THE

THAT

UNDERSTOOD

IS

IT

Montreal,

RECOMMENDATIONS

AND

Report—Hill,

The Security

Cove Vitamin & Pharmaceutical—

Limited, 244 St. James Street, W.,

Thursday, May 16, 1963

.

.

Co.,

122

Street, Chicago 3,
I.

Wood, Struthers...
Elects Six

yi

Wood, Struthers & Company, Inc.,
20

Exchange

New

Place,

York

City, has announced the election
of six new officers.
Elected us
Vice-Presidents

were

Russell" A.

P. Cookson, _and
Neil G. Clifton, J. Andrew Hachtmann
has been elected Assistant

Lowe,

James

Manhattan Shirt Company—Mem¬

Vice-President, Charles H. Jones,
shing & Co., 120 Broadway, New- orandum—Georgeson & Co., 52 Jr., Treasurer
and
Charles F.
York 5, N. Y. Also available is a Wall Street, New York 5, N. Y.
MacGill, Secretary.
memorandum

on

Phillips

Petro¬

Mergenthaler

Linotype—M

e m o-

leum.

randum—Amott, Baker & Co. In¬

Continental Bakin g-^Memoran-

corporated,

dum—A.

L.

Stampi

-

&

Co.,

120

150

Broadway,

Continued

on

New

page

*

Struthers

Wood,

Inc.

is

municipal

&

Company,

corporate

and

underwriting and

pri¬

active

in

36 vate placements.

*

Volume

Number

197

6264

.

.

Financial Chronicle

The Commercial and

.

than

Are Commercial Banks

and

a

advice

bankers

how

on

they

ration

blunt

a

profitably compete for

can

country's savings.

served

are

of

the

Stressed

is the need to

the

branches

match

to

advocates complete elimination

(3)

banks;

branch

how they can be maximized,

growth

of

The

bankers.

the

impressive

of

introduction

time-

new

instruments,

savings

such

pirst

the

as

loan

ening of
and

straints

i

-

jces

in

the

the

of

success

Use

fight for the saver's dollar should,
and have,

action

On

a

who

bank

as

of

percentage

are

should

it

serv-

potential

your

easier

be much

are

specialized

a

especial-.:advantage

capitalize

to

eager

opportunities

the%; sizable

on

to them.

open

competitor

to

is demonstrated by the

amounts

of

savings

-banks have acquired

some

without

any

'

V'
•
- effort and with clearly
I trust that those who have detive interest rates,
cided really to get in the fight for ,
'

unattrac-

,

savings

in

are

it

they should find it
the

horizon

time

my

than

practical
well
you

be

the

get going

is im-

What

term

near

possible

of years

one

in

a

may

if

decade

a

can

of

degree

through

banks

Many

facilities

to

an

to

un-

convenience

network

a

.

.

accrues

offer

of

have

branches,

unrivaled

bring

their

services

close to their customers. For

pany

.

My basic approach to the issue
•

before
built

In

these

x

(1)

simple

a

around

/•*\

•

is

us

for

the

f

ex-

successful

competing
what

are

strengths?

important

the

CB

How

y
s

can

they be maximized?
What

(2)

weaknesses

bankers'

Savings

&

Loan

nia

^

bankg

vantages? How

Qf

termg

service.

or

can

Which

moves

competitive

your

to
ad-

minimize

to

your

essentially within

are

control

your

the

of

and

weaknesses

bank

as

super-

legislation?

bankers-

-

been

ineffectual

so

public convenience is

be

done

if

in

to

strictions.

T

the

the

\

..

.

•

...

,

words .''competing

ing

the
the

of

money

count

let

me

make

the.meaning I attach.to the

savings." I

mean

effectively for

not only increas-

commercial banks'
savings

pot

share

making

but

at it. Certainly we icannot

profitless

growth

as

What

Now let

me

outsider's"

of

but the big

sons,

think

members
them

as

and

pulpit,

a

bankers

with

success

let

observe

that

absolutely

no¬

me

get

to curb that service.

way

for bankers to head

off the credit unions is to demon¬

had

that

strate

you

can

people better if

busses,

you

serve
are

these

given the

chance.

making regularly scheduled stops
other

Instead

in this mobile United States there
must

be

many

areas

would

services

profitable and

be
a

both

are

welcome,

significant boost

comptrollers

and

other

su¬

banking idea.

,

.

•«

cases

Particularly
which

banks
from

a

in

the

must

case

operate

of
only

single office, much can be
make

done

to

convenient. A lot of

banking

by
us

mail
rely

(2)
wider

—

the

about

You

credit

seriously
growing

unions,

my

have

close,

in

many

relationships with

can

range

of

offer effectively

of

service

payroll

credit

can

states, antibranch

many

of you who are fierce
partisans of

independent
the

banking,

question,

"In

through-plant
leaving

assessment

of

the

This

announcement

of

an

The
NEW

not

Your

competitors

branch

wide range of
banks in

options

—commercial

home

wide range

me

to

deduction

unions

they

'

cialization
in

tors

of

of

customers,
„

demand.

already

thrift

in

if

some

business

the bank

to

or

is

the saver. This

as

in

understandable

fices

that? have

•

few
..

,

the

investing

on

the

in

the

of

area

mand

for

or

other

as

(Par Value $.50

should

the

these

CB's

business

branches.

Your competition is, in my observation,

,

definitely

doing

better

will

money

efforts.

react

to

How

efforts

by the S & L's and Mutual Sav¬

ings

Banks

toward

what

they

term "more equal competitive op¬

portunity"? I suggest that it will
be difficult for you to win

public.

Once

a

to

me

public

again,

in the

Copies of the Prospectus

may

as may

best

seems

of public

service

that it isn't attractive

area

to the competition.
Areas of Competitive Weakness
Now let
areas

us

turn

our

attention to

of CB weakness-in the com¬

than

management
commercial

listing is the lack of
focus
banks.

on

have

savings competition

Company

share)

be obtained from the undersigned and
legally offer these securities in this state:

& w
INCORPORATED!.

savings

Your

in

major

competitors, as.savings specialists,

com¬

Offering Price: $10.00 Per Share

from such other dealers

the

in efforts to do such

lie

complete job

STOCK
per

midday

the

and

credit.

consumer

offer to sell nor a solicitation of an offer to buy any of these securities.
offering is made only by the Prospectus.

branch

limited

effort,

particularly

mortgage

stimulate

..

neighborhood
same

have

we

Any major weakening in the de¬

customers, but all too often the
residential

years

by the competi¬

authority,

big of-

,,

18

mortgage

considerable

success,

individual

,

last

home

tion to broaden their lending

itself,

than to customers for consumer
services, such

lending
competi¬

Nevertheless,
seen

spe¬

competi¬

any,

the

active

tailored

of

needs

'

J

seem

still

the

a

types of loans

mortgage

little,

burden
very

and

the

home

been

tive

the

on

The typical hours of bank service
to

and

make. Actualy, the

can

Continued

COMMON
.

loa ns,

contrast, they point to the close

restrictions

of America, Inc.

access,

term

mortgages

First in my
a

em¬

Home Entertainment

comment about hours

operation_of customer

money

of bond investments.

300,000 Shares

would

to the

open

loans,

a

loans, commercial mort¬

consumer

In

as

CB's the

investing savings

"a great deal." To illus-

trate, let
f

standpoint, I

you

for the

stress

major advantage of the

ISSUE

support

are

vacuum

credit unions to thrive on?"

petitors.

is neither

address

banking,

service

a

I

opposing

petition with the thrift institutions.

officials.

You

ployees built around the conven¬
ience

Non-

Savings

let

points here.

recap

intimate,

company

"In-Banking" Deductions

Payroll

In

for

severely restrict
"thrcugh-plant" services. To those

to

that many of you

and should be

quickly

(1)

Invites

strategic defense for banks

Outlawing Them

competition, of
me

pervisors have flatly rejected the
mobile

—

concerned

savings. Yet I understand that

past

of

Since I know

where such

Law

Competition

(4)

the

Compete With Credit Unions

banking services. Even

would

support to block wider service to

small towns and villages with¬

out

to

they're rendering

where in trying to get legislation

traveling

rigged

is that their

one

regard this rostrum

will

only

specially

cus¬

credit

unique service. At the risk

a

The

offices,

The

none.

unions have grown for many rea¬

another

have

cus¬

credit

run

significant

many

ing. I understand that in Puerto
marked

poorly

have

appears

banks

corporate

your

have

that

regulations

has

that

commercial

could
could

that of mobile bank¬

Rico

they

money

unions;

regulations thwart full service to
consumers is

pay¬

employees equally well.

of seeming to

of

Bank

Yet. gages,

if they could

the

is

less well.

serve

full-service

some

would

cusf0mer's

hours

give this "interest-




over a

be done to strengthen

can

answer,

com-Ms

.petitive success.

ed

illustration

credit

banks

tomers

re¬

where obsolete thinking

area

too,

convinced

tomers

•

the convenience advantage? From

more

comments,

my

clear

ga

economics

that

in availability

Before I dive into the substance
of

,

A minor

the

the

Many

of

obvious¬

erase

have *

we

have

university

legislation

savings operation alone.

a

be

they work?

.

_

are

environment

publicpolicy
which

they

in;.-shaping

successful

more

could

customers

growth.

could

unions

affirmative

better, not through

serve

at.

Anti-Branch

real

at it.

ly served by flexibility concerted
banker effort

a

give such service and make

regulation

so

its

banks

the

serve

by law. Yet surely where

even

to

accounts
be

can

growing

of

deduction,

show

fixed

competition.

operation do justify
facilities

getting legislative changes? What
must

deposit

demand

spreading costs

a

Why have commercial

(4)

In

managers?

require changes in

visory policy and practice and in

\

firmly

supervisory

by

hours

states,

more

loan

many

and

action to

credit

major

However,

Which

vantages

for

com

are

banking.
credits

University

heart

local

roll

barrier to better

some

In

operation

to

it,

money-saver for the banks.

the

the

intra-industry

own

more

offices

is largely historical accident in
that many, of the systems were
they be mini- established primarily as a feature
CB's'

°f

maximize

with

California^-the
943

a

Harvard

at

country,

competitive disad-

or

mized?

(3)

Company,

oi

convenience

close

union. Payroll deduction has been

progress

the

of

are a

either

accounts,

big, lusty

a

bank¬

whole has

a

imaginative,

th<J lead Jn branch of£ice facimies

the

are

iargest s & L, the Broadview

11 offices. Together, nine Califor-

ii

some

as

parts

agreements

through

offices

I know some

consumer

industry

Cuyahoga County is far ahead of

is

key questions:

4.-

savings,

It

one.

with its 71

and

convenient hours.

more

some

•

i(

from

long way to go in this area im¬

in

'-ample, the Cleveland Trust Com-

the right tack,

on

those banks that
usual

approaching

months.

in

A related advantage

to accept

easy

in

subject, which is

rather

Thus,

stay.

to

offering

But the

established customer to

another of your services than

stirred the thinking and ,pull him in for his one nne 0f
savings of those com- services. The significance .Of this

mercial bankers who

ly

for

have

high

a

to. get an

CB's in the

some

with

savings

your

already

savers

<market.

growing savings market, and the
real

you

customers

banks

competitors

as

Of

outreach of the

ties

take

phrase

for

savings accounts

I'm

sources

natural

for

customers

con-

commercial

on

major effort in

In

great many present and potential

loos-

d

m p o s e

the broad

is

CB's—your

of the self-imposed

some

externally

(CB's)

the

associations,

tion

to

their

rather

convenience

different

portant to savings competition.

strength relative to your competi-

negotiable C. D., the growing recognition of the striking, indeed
spectacular, success of the savings
and

the

among

checking

Why can't

have well recognized the At

Maximizing Advantages

savings,

deposit-type

of

deduction

hours,

you

in

CB's competitive advantages and

mercial

Payroll
and

branch?

with

through

importantly,
much

advantage

system be operated with

ing and have made

of soul searching

lot of com-

do

making

"through-the-company"

cash¬

to

a

The last few years have been ones
a

check

and

service opportunities that go with

provide standby-liquidity reserves; and (5) touches on the possibility
of low-cost capital financing.

for

savings services,

loans

of

of savings'

(4) suggests facility to

requirements and Regulation "Q";

reserve

in

area,

and simple.

easy

more

can

would

I

branch

points out how independents' antibranching efforts disadvantage all
commercial

offer

can

flexible

(2)

in lieu of more competitive vigorousness;

System

and

banks

greater

re¬

customers'

the

ing in small amounts?

negative approach seeking to ban credit unions and Home

Bank

the

"consumer

a

petition

ahead

as

a

Loan

or

commercials

Further

far

are

relationships with corporate cus¬
tomers in exploiting "in-plant," or

needs

(1)

Professor Williams:

that

so

consumer

S & L Associations, and MSB's industries.

designed,

most

our

signed

against thrift institutions.

governing savings, investing and taxing in the commercial banking,
opposes

be

savings banks

of

can't

Why

My

let them

In

years.

banking by mail

come

daytime if he wants
overhaul.

office.

my

9

My

home,

efforts

the

the

to

from

mail.
my

bank for three

gas

have

mile

a

by

wife who shares generously in our
joint account hasn't been in the

that

resent

doesn't

would

miles from

half

has to offer
of

banking

12

is

service center" open at hours de¬

non-universally applied restrictions

remove

in

he

designed,

Harvard expert covers, first, commercial banks'
race

attitudes

on

bank

stem¬

tankful

a

night

engine

an

novel

failure to make the most of their advantages and, second, measures
to overcome inherent weakness in the

at

buys

that

back

practical

larger share of the

a

who

fact

Business Administration, Boston, Mass.

handicap

banker

heavily

false

a

full line of services. Yet the fel¬

late

of Banking and Finance, Harvard University Graduate School of

Commercial

from

outsider,

under

branch is open it

a

low

By Charles M. Williams,* Edmund Cogswell Converse Professor

this

To

operate

unnecessary

ming
if

CB's.

the

banks

the

(2009)

on

as

their

page

26

10

The Commercial and Financial Chronicle

(2010)

nomic

Federal Tax Cut Means

substantial

are

State-Local Taxes

Lower

like

consider

or

of

some

these

the

in

one

Administration

has suggested

substantially increase state-local tax

'<

it

This should

revenue.

:

out,

lower

rates

tax

wisdom

is

a

tax

of

our

of

our

isn't.

It

could

the

that

or

all

problems.

program

of

all

age,

for

panacea

economic

than otherwise would be
feasible, and lessened dependence upon the Federal spending arm
points

he

mean,

contains

program

fiscal

Country's fiscal chief estimates that Pres. Kennedy's tax program
would

that the President's

tax

Treasury Department, Washington, D. C.

No

But

visible
that the more
promising economic outlook does not lessen the need for Federal
tax reductions this year. The Secretary takes cognizance of the
support state-local governmental needs. Taking note of the

to

meaningful tax cuts,

unanimous business sentiment in favor of

near

misconceptions about the Administration's tax program, and

:

answers

t

challenges critics to offer criticisms

'

that are realistically constructive.

;

As

ington

former member of the New

a

Chamber

York

I

Commerce,

of

-

on

program.

ture, and will help to
of

'more

in

used

are

President's tax
While they disagreed

It

will not

pleased and

proud to

...

see

and

*

a

economy be

sometimes
with
of

imagine
more

but

fact,

it

will

generate

three

nearly

President

j

major

Kennedy sub¬

lent

Message to the
Jan.

the

the

Douglas Dillon

and

called

for

Americans in

reduc

"tax

differed

your

important—was

,

200

their

community

two

weeks

ago

of

the

of
our

if

will

will

they

against

alleviate
and

come,

from them at

recover

built
in

put

immediate

an

budget deficits, but it will

have

up

ture

budgets.

It

will

will

solve

fu¬

setback and

disequilibrium by it¬
self, but it will help by enabling

industry

to -produce

of

more,

this

an

,

than

House

Committee

in

Ways
Wash-

Executiye

WMe
agrees

yice

virtuaUy

Qne

goal of maximum

those

upon

what action is taken

to

President's

pro¬

Certainly
for

an

in

week

U.

S.

to

should

the

fiscal

eco¬

manent program

term

rate

more

deficit.

far

reap

from

tax

long

economic

economic

Prospects

Tax Cut

Here

in

metropolis,

it

paradoxical
nomic

growth.

true that
ness

,

AMERICAN CANCER SOCIETY

activity
it

is




of

It

is

also

about

eco¬

is

-

eco¬

undeniably

high

true

and

that

the.vast

last

Americans

at

preceding
reality

are

April,

it

is

our

four

citizens

more

in

any

somber

a

last

economy

million

who

of

our

active¬

were

of

out

there

past

IT WON'T BE NECESSARY.

face
year

the
we

were

of

our

the

(

both
0 The

I
This space contributed by the publisher

rate

believe, that

nomic

rates

from

American,
from

the

its

However,

lowest

President's

top-to-bottom,

will

on

and

bracket,

the

have

highest,

individual

cumulative

a

incomes and jobs, prof¬

incentives,

consumption

productivity.

Some

of borrowed
program

cut

tax

deficit.

be

the

be

in

the

despite

unemployment,

cost of well

this

cost

it

the

economic

under $9

is

be

staged

eco¬

cuts,

our

every prom¬

very

few

offset

activity.

in the

as

no one can guarantee

net

a

the

fact

case

revenue

three

over

good part

by increased

They

forget

of earlier tax

tax revenues will in

be

years

greater

cut.

*

economic

by

point

tax

growth

reduction

better

brings

balanced

a

than

your

Jan.

in

appears

reduction

tax

and

»

for *

call

7

'

which

one

revision.

The

statement reads:
"It

be

may

doxical,

but

reduction

to

para¬

of

tax

stimulates

the

program

which

economy

full

production

and

a

and 7

rapid

more

sustained rate of growth

and

which

is

accompanied by

of

best

anced
'

considered

a

employment

expenditures,
of

way

and

firm

a

be

may

achieving

bal¬

in the future."

budgets

Your organization, is among the

many

that

about

expenditure

deeply concerned

are

Administration
clear

that it

The
and

it

made

shares

record

This

control.

has

that

shows,

very

concern.

emphatically

unmistakably,

that

this

Ad¬

ministration has exercised, is

ercising,.
exercise,

will

and

firm control

a

ex¬

continue " to

expenditures.

Fed¬

over

Let

cite

me

that record:'

First,
fense

leaving

and

aside

all

space,

only

de¬

other

Fed-"

eral expenditures as estimated

the President for fiscal

increase

of

$5.5

level.

1961

It

by

1964 show

billion

over

surprise

may

to learn that this increase is

you

$800 million smaller than the in¬
in

the

year

period

This

clear

expenditures

same

that took place

during the three-

from

1958

proof

of

1961.

to

in

success

slowing the rise in Federal spend¬
ing in all areas save only defense
and

where overriding

space,

na¬

tional needs had to be met.

Second,
in his

pect

the President stated

as

Budget Message: "The
of

expanding

pros¬

economic

ac¬

revenues

in the years ahead does not mean

that

Federal

outlays

rise

should

in proportion to such revenue in¬

fully

the

As

effective

climbs
a

tax

becomes

cut

toward

the

and
full

economy

employment,

substantial part ofJ the

revenue

increases must go toward eliminat¬

ing the transitional

deficit."

The

President has repeated that pledge

other occasions, but

apparently r

its significance has not been

fully X

understood.

Third, the President is actively ~

translating
firm

a

a

his

.commitment

expenditure

Except

terest

on

the

has

7.5%

Budget

this
over

years.

annual
same

rest
a

in¬

of

the

reduction

And it fol¬

increases

section

of

of
the

the last nine years.

Before the Budget
in

and

only three times in

average

in

the

budget. Such

occurred

-

public debt—he has '

the lash fifteen

lows

defense

to

into •'

unavoidable

actually reduced
current

control

for

the

space—and

than

they would have been without
tax

last

over

billion, that
a

economy

Answers Chamber's Statement

action.

provides

during which
will

that,

present

relief at

an

situation where

a

budget.

and that

increase

overlook

program

budget

they will

as

—

constantly closer to

•

that

that

in

balanced

a

tax cut—or

a

moving

economy

financed

money,

would

the

situation where the

of

increasing

on

"

concern

would

They

I

-

have voiced

than

every

tax

to

an

a

moving toward
spurred

even

estimated

more

constantly recede

creases.

virtually

These

the

ise of continuing on the upswing.
=

the

every

benefit.

benefits

prospects
without

But,

was

tivity and rising Federal

$14 billion in rate reduction and

contrary,
our

producers,

investors.

a

which

in

will

between

re¬

includes

increase

may

activity shows

the

must

we

and

of

is

is de¬

across-the-board reduction in tax

hardship

of

a

of

sector

and

heart

program

of

high

this

workers

years,

our

that

consumers

that

the

vitality

private sector—and
member

out

Secretary of the Treasury, I

On.

that, in

It

jobs to take

normal

recession

program.

economy

the

upon

We

simply unable

with

is the prin¬

That

cut.

dollars. The difference

deeper into

crease

public

money

vitality of the

pendent

hardly inclined, either by be¬
lief or by occupation, to predict
offing.

buy.

the

am

a

more

more

free market economy such as ours
the

is

an

produc¬

are

in

$9 billion. The dif¬

far

amount in

their

factories

has

is

working,

are

tax

cut, it

than

where

a

goods, and where

the

labor force.

As

level

to

than

over

bring
where

is based upon the belief

people

1962.

that

to create enough new
care

business

month

April
fact

of

more

last

in

were

must

MAYBE SOME YEAR

work

action—

closer to

people

our

at more

from

Year

take

ciple behind the tax

and

surge
were

program

year—to

up

be:

which to

and

recent

this

our

more

effect

the

it

should

which

will

advantage of that

must

economy

ly seeking work. And despite the
past year's continuing recovery

activity, there

We

take

en-

unable to offer jobs to

was

than

fellow

saw

than

work

that

month
more

month

offers

This

estimated

was

a

tax

a

ference

eral

We must take

both

citizens

our

rising,

joying the richest levels of pros¬
perity in our history. However,
although

THIS YEAR.

almost

present rate of busi¬

our

majority
I'M GIVING TO THE

hustling

seem

talk

to

this

problems and lagging

nomic

and

in

this

may

present

our

President's

or

the

For

of those goods are sold to a

room,

in

and

company,

that

Action

leverage.

of

receding

be.

Tax

of

the

when

effective than it would

more

billion with

without

the

would

we

ahead.

upswing

otherwise

ing

and

Timing

this

than

either

the

more

Business

is

economy

it

benefits

when

reduction

tax

deficit

the

pace

even

be

to

$1 bil¬

as

greater

the

be¬

January to be slightly under $12

we

from

a

budget

the

reduction

of

anyway

amount

have

of lagging growth. The 1964

cause

reducing

atively brisk

more

growth.

im¬

is moving at today's rel¬

economy

will

important,

more

the

to

we

control

thus

—

Even

likely

much

as

per¬

our

of

rate

estimated last Jan¬

we

in

,

compared

the

Commerce,

are

uary—perhaps

the

to, raise

of;,, overall

a

than

before

of

present

1964

than

more

and

always been intended—as

more

provement continue, our revenues

quick and

a

ask

stated" last

Washington,

Chamber

fact

Few statements have made this

hardly

I

the

increase

budget deficit is small when

deficit

the

on

reduction

As

overlook

temporary

extent

climate

tax

enjoy.

now

also

this

the

.

could

we

economic

.

conducive

is not intended—and is not
as

good

a

tax program this year.

make

temporary shelter against reces¬
sion. It was designed—and has

dig_

with President Kennedy's

goal—the

the

designed—merely

chairman.
nQ

against

all, it must be borne In

that

gram

General Life Insurance Company,
ag

sales

more

both here and abroad.
Above

pro¬

to that ques¬

answer

depends

leverage

goods at

foreign competitors in markets

mind

damage

tion

added

dent
the Third National Bank
Nashville, and Frazer B. Wilde,
Chairman of the Connecticut

a

quickly, with

/

I think the

increase

Corporation, Sam Fleming, Presi-

our¬

They
that

us

inching

our-

put

recession

simply

of

vitality—

jobs, income, profits, and

competitive prices—and thus help

newer

strongly

have

we

better,

and

Or

unemployment,

recover

minimum

will

:

balance

our

of payments

our

moved

a

position to weather

a

gov¬

:

not

level

drive?

economic

our

short,

lion

balance

to

revenues

down,

high

upward

reduced

selves in

for

not

sometimes

unacceptably

we

we

ultimately produce increased

"Business

far more

,,

the

to

us

ernment

the

was

dent pf the Westinghouse Electric

in tenor, and

,

before

business

from

phenomenon. More

Means

is

more

far

witnesses, for example, have

testified
and

It

the Norfolk and Western Railway,
with Mark W. Cresap, Jr., Presi-

in major proposals. Nor is
,

strong

substantial

But

agreement in aims,
,

how

merely drifting along
up,

and Stuart Saunders, President of
proposals

tax

striking—and certainly

.

of

for

faster rate.

end to

1963," headed by Henry Ford, II,

respects

some

President's."

isolated

indication

walks of life

all

that goal.

in.

legisla¬

Committee for Tax Reduction in

'

Inevitably,

a

it

but

impact

enable

any

appealed

revision"—and

to support

of domestic

piece

on

formation in Washington less than

York

Chamber

been f

their

this

that support among the leaders of

last

24,

New

has

recessions,

tion in recent memory. An excel¬

mitted his Tax

Congress

it

than

year

reduction

tax

provide

'

of

President'sA goal

the

meaningful

before

weeks

of

increasing number

must

we

It will not guarantee us

more

port

•

the

our

unemployment, and lacking

ahead,

unemployment

cure

rapidly growing population.

nation as a whole is, in
solidly united in sup-

The

;

For,

the

jobs

Business Support

audi-

ence..

to

;create

appro¬

priate

tion

foster maximum economic growth.

a

an

re¬

Will

more

.

i

comes

another

.

so;

can't

I

employ¬

along?

.

taxes,

ques¬

economic

of

cession

'

overnight,

level

when

duction?

the

The

of

prevail if and

to

effective fashion.

widely on specifics, there - was the higher levels of economic ac¬
many old friends here today. And
virtual unanimity in support of tivity we need if we are to resince
my
.■
'
•' the President's basic premise: a
dude
our
present unacceptably
s:u b j e c t
| substantial reduction in taxes to high rate of unemployment and
is
am

level

Thursday, May 16, 1963

.

recessions

future—with

bill.

tax

a

what

activity—what

a

sensible

more

a

that

assure

resources

our

without

have

the

program

economic

activity, will end some of the in■f equities in our present tax struc*

in

tion" is:

will

iPresident's

the

will stimulate increased

signs of better business prospects, Mr. Dillon argues

not

clear, steady

be.

"

;

will

time

we

some

.

ment—what level of income—will

today.

you

No

By Hon. Douglas Dillon, Secretary of the Treasury,

at

tax

the program itself. I would
to

with

that

action—there

misconceptions

numerous

about
.

through significant

growth

and

.

was

?ent up "

January, the President cut $6
Continued

on

page

20

Volume

197

Number

6264

.

.

The Commercial and Financial Chronicle

.

face

Modest Devaluation Would

(2011)

imminent financial

an

claims

prob¬

lem that has to be solved. George
W.

Governors

to

The nature

of

which

our

balance of payments

our

of

the

European

1949

exports must be propped, is said to leave

choice but devaluation of gold to $36.75-$38.50

/
--

the

extent

us

of

William

a temporary gold embargo if we are threatened by a
gold. Prof. Wertheimer contends that the IMF permits cor¬

recting disequilibrium
as

in

other than the Triffin
autonomous

deficits

or

that

manner;

such

can

strength

gold

or

this

betrayal of the trust put in,

a

be

reserves,

other

it

could

our

not

view

have

other

no

but

The Problem

For

is

first time since the

the

Civil

spectacular

and

dollar holdings

increase

in

gold

of the rest of

the world from $15 billion in 1950
to

internationally. The Treasury and

$44 billion by the end of 1982.
Continental Europe (the Common

Federal

Market) amassed the lion's share

War, the dollar is under pressure
Re¬

of these

System

serve

billion

provide

the

that

dollars

ready

abroad

of

economic

situation

has

with

world-wide

developed in
of the

the relief

dollar

return

to

shortage

and

convertibility

of

foreign exchanges. The balance of

deficit

payments

cits,

inflation

flight

or a

trary,

the

chasing

be

stable

of

power

the

On

internal

the

pur¬

dollar in
favorably

compares

years

con¬

ticularly

the

in

become

countries

which

either

ing,

by

or

Our

dollar

liabilities

by

have

obligations

since

rising

either

Liquid

1950.

paid

gold

in

or

increase in foreign dollar

an

holdings

accumulated

Increase in

follows:

as

Liabilities

Payments Deficits)

the

ability

1951

dise

lion

•1955

When

years.

tal

1957

by

of

our

flows
draw

to

that

the

the

for

kinds

t;

lion

sobering

in

unassisted

face

deficit

a

too,

of

annually except for
from

1,

foreign

and

transferred

political

appears

■./

of

While

Of this amount, we paid

:a§h"

(that is, in gold)

in

about $9

illion and added 17 billion to the
oliar- claims

of

foreigners.

For-

billion

short-term

gainst us (excluding

1

International

orresponding

to

claims

the holdings

Organizations),
our




decline

aid

German

international

of

support

at

run

only

States.

Europe

Any

serves

stimulation

third

-

the

increase

cost

further

as

investment

increase

and

productiv¬

ity, resulting in much faster
of

growth

States.
the

than

In

the

in

and

mass

their

the

a

early

stages

Market,
market

mass

production

only in

are

have

and

Continued

rates

United

Common

benefits from

of

in

only

for

to

one

levels

on

not

38

page

~~

DIVIDEND NOTICES

payments

equilibria. These

national

pacemakers of the Great Depres¬

an

it

credit

in

order

to

tragically

fight

"imaginary dollar glut." While
is

true

that

Europe

is

sion.

liquid against the dollar and has
become
rate of

net

our

creditor

1 The

pression
and

difference

international

between

(not

assets

total

U.

including

S.

9ff.

pp.

and

us

GOULD-

deficits

other

by

policies
of

teaches

of payments

than

the

multilateral

NATIONAL

sup¬

BATTERIES,

private

INC.

Manufacturers of a complete
line of automotive, industrial
and military storage batteries

plus motive specialties.

The Foreign Exchange Rate

A REGULAR

Of the Dollar

QUARTERLY DIVIDEND

Relatively
and

costs

United
of

faster

in

rising

Europe

States

create

than
the

in

mon

or

.

was

Board

of

declared by
Directors

on

April 9, 1963 payable June
14, 1963 to stockholders of

of

record

on

This is

later would eliminate the defi¬

cit. The Trade Expansion

Stock,

the

the

illusion

growing competitiveness

a

of 32V2C per share on Com¬

wages

U. S. products abroad that sooner

Commercial and Fianancial Chron¬

1963,

experience

powerful

public capital flows.

1962,

21,

became

cured

failed

measures

our

and obligations. In the single

for example, we added $2.5
billion to our solvency. On the one hand,
our
dollar obligations rose by $1.1
bil¬
lion; on the other, we provided a net
amount of $2.9
billion of private capital
and $700 million repayable public loans.
Even if we deduct the gold outflow of
$800 million, we still achieved an overall
surplus of $1.7 billion in our interna¬
tional dealings.
;
year

be

monetary

$4 billion (with $15 billion

gold stock)

This

must

the

at

and

that balance

highly

May 31, 1963.

our

126th Common

Dividend.

Act, too,

H.

A.

DAGGETT

DIVIDEND NOTICE,
ST. PAUL 1, MINNESOTA

The United Gas

Improvement»

Company
DIVIDEND

;

Cigarettes

of

OLD

liquidity

States which

can

now
our

international

(amounting

to

$35

ing,

no

system

.been

devised

claims
lar

and

from

thus

remove

international

the

we

been

share

% Preferred Stock has

declared

payable

July

1*

May 3L

1963.

:

J. H.

Mackenzie, Treasurer.

Philadelphia, May 6, 1963

•

v

.

OLD GOLD SPIN FILTERS

EMBASSY

King Size
,

six

cicA.tms

Smoking Tobaccos
ER-GGS

DIVID E N D :N O TIC E

UNION

'

V

COR PORATION

LEADER

FRIENDS

Regular quarterly dividend of $1.75 per
share

on

the Preferred Stock and regular

quarterly dividend of $.625 per share
the

on

INDIA

Lit tie

ROCHESTER, NEW YORK

HOUSE

Cigars

DIVIDEND

BETWEEN THE ACTS

outstanding

Lorillard

Common

Stock

of

P.

Company have been declared

payable July 1, 1963, to stockholders of
record

at

the

close

of business June

3,

MAD,SON

poration

at a meeting held on
May 9, 1963, declared a quar¬

Chewing Tobaccos
BEECH-NUT

terly

BAGPIPE
HAVANA BLOSSOM

1963. Checks will be mailed.

NOTICE

The Directors of Xerox Cor-,

..

that

;

A

share

dividend
on

the

of

$0.25

common

York, May 15,

1963.

Vice President

Turkish Cigarettes

payable July 1, 1963,

MURAD

G. O. DAVIES,
New

holders of record

HELMAR

of

business

on

at

to

Htt/i ^/te Sh/tedl—tfuSeavc/i

continue to

CP

-

per

stock

stock¬

the close

June 7, 1963.

dol¬

pressure.1

.

King Size

Under the present international

is monetary set-up,

the 414

to

King Size

of

remains very reassur¬
international
monetary

has

FILTERS

only

presently)

1963

May 31, 1963.'

SPRING

OLD GOLD
SFT3I3STC3

billion

28,

1963 to holders of record

King Size
Crush-Proof Box

SPIN

solvency

$40

-

the

NEWPORT

^FUTERXlGAnEmS-

$25 billion.

amount to

GOLD STRAIGHTS

Imperial Size

IMjffl

Organiza¬

on

A dividend of $1.06^ per
on

Regular
King Size

gold continues to

International

June

holders of record

Iiegafar
King Size
Crush-Proof Box

Payments Deficit

in

payable

KENT

'

.

share

;

Common Stock has been declared

vulner¬

:; '■ -;T

NOTICE

A dividend of 22c per

of

source

"

AMERICA'S FIRST TOBACCO MERCHANTS

most

central

20

not

S., British and

YORK

in

would permit the
neutralizing of
banks, commercial
short-term
debt
by
long-term
anks, etc., now hold a total of
Lgn

needs

capital exports to the free
world that would deflate inter¬

regularly.

this

international

the

loirt
ons.

financial

commitment,

order to achieve U.

in¬

our

highly

;

measured

tions,

obliga-

past

does

corresponding-

requirements. During

de¬

investment

changes

countries,

163, We have run up 26.5 billion
term international

monetary

recent

monetary

our

bil¬

liabilities, including dollar assets

before Jan.

of

view of the dynamic economic

The

year.

years

still

the '20s, exchange considerations
We dominated financial
policies in

we

two

annual rates of $1-2 billion. These
surplus

of payments

and

decline, while our short-term ob¬
ligations, due to deficits, grow at

13

the

made subservient to balance

were

sug¬

exports.

account,

be

only

of

domestic

seriously

1.9

the

catastrophic

experiences

of

must

we

conclusion

become

service

e

Balance

V

curtailment

free

appraisal

cluding fringe benefits in Europe

measures

exports,

the

expectations. Average hour¬
in manufacturing in¬

United

the

strong¬

a

wages

in

have

we

Monetary Implications of the

1.8

the

ly

investment

capital

American

in

realstic

situation

of

2.5

est.-—.-

S.

the

labor

of

world."; A

community
'

of

division

er

because

cash¬

Commission,

economy and to achieve

business

exceed internal

only

dangerous.

reduction

private capi¬

the United

1963

petitiveness

fi¬

3.7

——

comforts

Hallstein, President of

letter to me, praised this
step
as initiative to "improve the com¬

that might be both

and

a

elementary

of the

capi¬ when

also

gener¬

ex¬

the

3.9

1962

-

measures

for

second,

the recall

not

are

but

hand,

S.

a

15

exnorts

various

have

we

last

1959

In

gest

These

ideas,

ineffectual

2 c.f.

1960

♦The

outflows.

disturbing

other

saving first, because

Concerning
U,

interest

private

reverse

3.5

.*.1961-"——

by

least

fully

in

U.

Chairman

our

own

and

deficient

(—0.5)*

1958

...

tal

at

the

flows.

spend¬

short-term

will

rates,

icle, 'Feb.

public spending abroad,

0.9

1956

policies,
in

remains

allow

we

portion

able.

1.1

—

not

controls.

during

income

1.6

-

international

export

debtor

2.2

1953
1954

to

annually

and

-

...

monetary
increase

On

continue to

the

shared

should \ be

for

the Common Market

exports
have
beei
rising
slowly from $16 to $21 bil¬

very

In

1.0

fully

States

sion of

Dr. Walter

basis of the international
po¬

earned

0.3

—

1952

be

of

gains

corresponding expan¬
imports. In a similar vein,

sition of the dollar. Our merchan¬

come

$3.6

provider of

exchange

Billions

1950

for

leader

Strength
Our

would
Of

political and
as

defense

our

the

consuming public had too long

needs

will

Dubious About Our Export

On

(Corresponding to U. S. Balance

balance of

condition
our

domestic

around

by

such

.

nanced
been

the

by drastic cuts in spend¬

large

creditors.

our

create

development do

capital

induced

-

and

in¬

permit the removal of the deficit

ex¬

with rising prices elsewhere, par¬

have

to

commitments

dollar

growth

breakdown in our pro¬

facilities.

duction

recent

cannot

free

a

Federal budget defi¬

by

-

foreign

our

This

continue because

R. G. Wertheimer

defense

of the free world and

connection

plained

in

billion

expenditures

our

continue

deficits

balance

$4.5

private

payments.

continues.

the

and

overall

payments,

This

with

vestments

the

balance

annually,

connected

owe

in

produces

surpluses

of

al annual def¬

icits

earlier

merchandise

our

regularly

addition¬

and

the

spite of the correct assertion

jm

al-

we

at

must

propose

that

sided

problem

billion

financial

wealthy Europe and that tighter

fense

-time

-

$6

reserves

date.

for

being, but the
two

possessing $25

now

international

against

make-shijft
support

gains,

ing

built

now

concerning

wealthy Europe does not

and

are

financed

of the United

ate sufficient

Hopes for the elimination of the
deficit

the

happening.

the

policies.

concept

unbelievable

has

our

Capital

this

starved

in

than

Our

borrowers.

its

the

proposed devaluation.

The

Jr.,
again

and

foreign

considered

ports

for

available to domestic and foreign

ly

:

it expects from such reduc¬

larger

power

that

of

line be¬

tions

strength

savings

lowering
same

cause

continues unmatched in. providing

to

the

continue

Even

ability

proposing

tariffs hews to the

shortage.

Europe,,
conclusions may be drawn.

wrong

by

dollar

private loans and public aid

obligations have to be increasing¬

payments

alternative

Martin,

our

short-

billion),

nations

a

Need

needed.

The

Chairman

again

from

external

be¬

freedom

our

is

to pres¬

us

Likewise,

that

con¬

plans which claim the dollar's

restored without regard to

we

be

U. S.

domestic

McC.

expressed

and that,

currency;

suffer

free

the

$11

our

Purchasing

a

sluggish

a

counting

other

Europe's

delay

because

creditors and

inhibits

economy."2

imposing

strued

it

is

problem

issue

not

against

the

1963 that "The bal¬

our

stimulate

inducing foreign central banks to agree to nonconvertibility
by offering them a devaluation bonus or, if this does not work,
on

from

cause

proposes

run

miss

not

payments

urgent

sures

The writer

an ounce.

Re¬

in its solution exposes

to-

other

no

Feb. 1,

on

most

ailments, which include the
and

Federal

main point when he declared be¬

tee

University, Mass.

devaluation

did

System,

serve

ance

after-effects

of the

fore the Joint Economic Commit¬

By Robert C. Wertheimer, Professor of Economics,
Babson Institute and Northeastern

Mitchell, member of the Board

most

of

Cure Our Payments Gap

term

11

E. K. DAMON

Treasurer

Commercial and Financial Chronicle

The

12

(2012)

rate

Getting at the Heart
Of Real Tax Progress

we

should

-

able

be

down to 30%., To

to

tails-—

get

ard

accomplish this

makes

willingness to make choices which

ing.

not

are

if

easy

only

of

of

because

answer

from

-

guish

proposals will, if enacted, prove harmful
long-run point of view. He urges that we develop better study
current

dominating
a

tax

to

level, and better control over Federal spending.

Who

not

could

tax

tractive

of

is

of

aware

the

of

interests
those

has

than

Probably each

*

Everyone

us.

business. The

cut

this
as

parts of

not

was

The

pairing

"business"

economy,

and

shield

from the prob-

The

what

making

to

ble.

which

.

I

be the best possi¬

to

me

will

comments

My

—

predecessor

Yet the plan does not

attempted.
seem

rates

tax

recall that its

not

not

aspects.

our

agencies

what

we1

have to

we

business

on

in the

process

They

can

The

to 14%
to

be

person

the

to

Yet it has little of

speed growth.

The

producing agency—business.
would

corporation

a

live

to

able

be

tax

change

scale is

of

rate

47% and with rates up to 65% on

leave

children will influence

our

more

best

1975

or

tration

weighs
very

great

putting

short-term

commit

stimu¬
later

perhaps foreclose

indefinitely to

designed

which

ditions

changes

proposals, I fear, would

its

structure

to

so

—

far

tax

a

The

extent be

Any

more

to

start

objectives

the
can

or

less

discussion

ought

criteria

of

as

and

by

approximately
come).
the

and

the

such

would

burden

also

.tax?)
and

theories

would

clear

cause-and-

as

the

other

bears

and

helpful.

proposals

What

welfare of the

the

income

values,

over

the

will

would

be

advance

the

public

long run?




whose

the

strongest

difficult

the

as

a

not

to

me

stand

each

opposition.)

effects.

Tax

have

other

matters

business

reduction

whole

of

high

is

obstacle

that

million

cor¬

revenue

(gross).

of,

No

of, say 20 percentage points
now

feasible.

not make

Whether

percentage
years

But

could

the

points

plan

does,

three

over

(The

fortunately,

eight percentage point

cut for the

larger number of small
As

grows, so will

This

growth

the

•

economy

corporation profits.

will

offer

declining tax rates.
Congress,, of

commit

its

less,

over a

that

since

will

incentive,

on

which

period
Korea

no

longer than

ended

the

38%

on

rates,

be

may

over

debated.

debate, though,

no

Such

a

rates

O ther

narrow

Proposals'

find

all

there

if

Two

first

rates.

too

decides

revenues.

would

be

re¬

A widen¬

be

of

brackets
Yet high top

retained

but

—

pre¬

doing much harm if

result

of bracket

over,

to

to become effective at

higher

serye

The brac¬

necessary—

much

will

ef¬

ranges,

of

could be

from

in

narrow

cost revenue.

were

a
us

business

income'

tax

the

or

the

selling

a

in

rise

a

consist,

on

or

either

in

es¬

difference

price

output and what

of

a

the firm

materials, parts, and

raw

constituents.

Or

tax

the

could, in effect, be considered
levy

a

on

as

interest, rents,

wages,

and profit.
The

maximum
than

more

half

for

rate

of

before

3

to

4%

the

for

A

interest,

"modest"

would

finance

significant cut in the tax
porations

though

as

al¬

exemptions

personal
etc..

be

large

as

deductions

contributions,

would

base

again

income

(v

after

but

not

a

cor¬

on

many

per¬

on

the
in¬

the.

CED,

tax.

Y

•

Concluding Comment :

other

his

to

con¬

will

one

no

liking,

choices

The

explicit
the

relation

attention.

total

to

protections

against

^

The
in

cost

revenue

expenditures.

Are the;

excessive

of

adequate?

re¬

42%

a

rate

high,

income

levels

as

a

Reforms

in

corporations

on

view.

my

as

third

A

issue is the possible distorting ef¬
fect

decisions

on

of

the

prospect

of future rate reductions.

And, of

practical weight—would

some

scheduled

for the

New Revenue

The

President

revenue

difficult!

But

re¬

likely to

possible

the long run seems to

new

taxes.

new

the

obvious

is

Let

the long run.

importance

Federal expenditure.)

how

the

have

ficulties

to

of

be

22,

1963.

Crosthwaite V.-P.

regional

Pa.

<

revenue

economic

deficit

large

form

of

Inc.,

consumption

forsignificant

good

selective

investment

is

the

economy

tax

-at

the

as

dis-

tributor

for

Delaware

:

Income

Nelson, Presi¬

a

big

part of

often assumed, a

manufacturing

level

has

nounced.

sources;

a

Fund,

Linton

W.

fi¬

seem;

cover

and

Fund

dif¬

revenue"; we

excises

not such

to

and

national

argu¬

tax.; "Bits

Penn
Plaza,

adviser

gap. ■

deal, and because manufac¬

turing

3

Center

dent,

revenue

of

Management Company,

re¬

pieces" could yield something.

Yet

Morgan

—

Vice-President

sales

Delaware

:

would" apparently consist of some,

and

,

by Dr. Harriss at the
21st
Annual
Meeting
of
the National
Taxpayers' Conference sponsored by the
Tax Foundation, Washington, D. C.f April

highly probable.
Alternative

do

real

of

address

*An

•

a

non-inflationary
a

for

we

the tax front.

progress on

short-run deficit have

of

nancing

Yet

prospect

combined

should

rates

moment,
a

outlook

the

is

(The

fundamental

greatest

-

require modification of many de¬

me

of

desire '

Before long, however,

merit.

economy over

factor

apparent conviction that

ments for

lead

probably

not consider to be the best for the

Presi¬

spending,

the

action.

will

to choices which I would

■

leads

of

courses

considerations

Political

Crosthwaite has been appointed a

to

At

different

expected

things

Congressional

duced,

the

be

to

Dela. Mgmt. Elects

no

Unless

dential "and

tax

about

questions
results

PHILADELPHIA,

propose

increase

are

strained than they

no

But

On

there

future

unpopular subject be left to

ethers!

despair,

for

Administration

more

today,

are

than

tax "problems,

perplexing
from

are •

Sources

suggests

sources.

get much

present

system .which

well

budget

V must consider some broader base.
What is available? - Because the

widening.

tax
as

Large

not to be taken lightly.

are

hope

purely

economic

major elements, however,

is

this

objective basis.

any

income

politically

they

Though

features

require

to tax¬

would

steps.

widening

of tax

vented

the

actually be put into effect?

differentiation

fective marginal

rates

Of

merit in the plan.

is

income

on

firm's

come

deserves " serious

sideration.

precipitousness of progression and

would

Proposals

have merit.'.One elterna-'

with the

now

between

' be

a

tax—as

would

a

tax

centage points of reduction

Chamber of Commerce, and

ing of brackets would reduce the

lower

develop

ap¬

16%.

than

Administration

course,

trying to

of in¬

tain the present bracket structure

are

and

consensus.

a

ductions

Congress

however,

rate,
24%

It
of

sence,

a

could

lower brackets of the personal

of

the

bulk

allowing for other

kets

of examining

rate

the

great

spending

defensible

Congressional

on

effects

when applied

:

wish 'I

I

procedure for

some

as a means

issues

more

too

rates

tax

not

upon,

cannot V Building

Neverthe¬

and

High

Perhaps

sharp

as

The second is the "stopping point"

Structural Changes:

course,

successors.

not

unincorporated

offset

an

weight.

able income would pay for what¬

the

difficult.

suggest

should be about the average

The

big

deficits

plicable to the
rate

prices;

of

is

It

more,

either

as

consumption

agreement will be' lowance

any

supplementing

hpwever,

20%

adverse

economy.

"package,"

and

added.

thought of

personal

hearings
the

in¬

not

are

.

Getting
•could

possibilities,

20%, range will, not

we

propose an

corporations.)

economic

point that high tax

have

do

.1

the

statement

a

duction

be

can

value

other

prob¬

choice.

or

bigger start than five

for large corporations?

Treasury

to

involving

fair

are

At
a

rate graduation
or

greatly.

with the

greatest

were

however, will and do.
50%

in

un¬

the

hurt

possibility, about which

more

for

efficiency,

in the

hear

on

rate compara¬

a

typical state rate.

the picture is one with more basis

effect

often

Another
we

are

yielded

tive, the Baker-Herlong approach,

around

Rates

sales tax at

a

ble, with .the

paid for

noted,

exceptionally

pos¬

rate

persuasive

much

revisions
desirable,

;

Federal tax cuts

proposed

judge. Every

Some

be

be

grcups

thing,

business

items.

future

criteria for pass¬

on

carry

rates

pro¬

the classification

on

would

14%

the

One

should

nearly 1V2%

political matter

a

fairness

to

rarely

1964

President).

certainly

as

ing judgment

The

percentage point of the

cuts
are

the

required?

—as

has

seriously

realistic

any

We lack clear

to

rates.

The

changes

ever

" to

seem

is

members

benefit greatly, seem to constitute

to

underlying

(Unions,

easy.

fairness.

more

direction

this

rate-involves

More analysis of the facts,
the

in

move

$500

of the corporation

of

To

nearly

Plans for broad

really

growth, to achieve

if
in

cut

some

come

porate

important issues
(Who

business—to

on

great that

be

in

And

there be

much

are

efficency, to speed

more

of

ties to monetary, wage, and

policies.

burdensome

proposals

effect economic relations assumed,
and

less

make for

should

we

in¬

abandoned.

or

would

structure

threatened.

is only one of the factors making

formulation

the

run

plan for tax rates which

change

include

equity,

long

curtailed

(at .it is.

where

of

would

of. taxation

cluded
■

are recom¬

so

desirable

other
be

second

The long-run revenue potential of

on

For 'the

losses

The cost is

opposi¬

balance

on

seem

ably agree with such

means

place

the

revenue

many

There

heavily.

so

is

revenue

levels of

1962

me

not competent to

am

student

million

$500

is

Here

big

must

such high

by

taxes

clarification

which

rarely

taxed

almost

testimony

desirable, and still others which I

the

of

point

to

seem

the

each

the

structural

some

which

should

and

in

of

others which

of

rate

in Fed¬

1962' to

the

on

would

increase

by

tax at

a

needed merely to offset the base-

reduction

posed

for

rate

of 6%

base

from

proposed

Administration,

it

thousand

evidence

a

$1,000

million

in

In

to the prob¬

up

the

cover

a

of

first

the

on

$800

A

is

rate

defined

,

spending

the Treasury proposals.

of

tax

eral

A

far -greater than -would be

a

however,

about

Congress,' except

—but

about

Moreover;

much appeal.

Little

.?

.

appears

substantial. Each percentage point

impersonality of big corporations

statements of the concepts of fair¬
ness

decisions

business

if

—

influenced

not

in¬

con¬

temporary.
tax

with

be evaluated.

revision

novation
are

service

product and

..

level.

broadly

principle, base-broadening to. by

The

with low income.

revenue'-: cost,

nearer

meet

concerned—may to significant

are

of

make

difficult,

more

in

more

Adminis¬

The

however,

upon

them. The

ciently^ have better jobs, expect

not

later?

will

can

effi¬

more

What would be best

lation of the economy. But today's

actions

country

and

more

we

rates, if the returns on capital

indeed,

emphasis

produce

Yet

are

considerations

near-term

better—the

live

can

tax

envision

can

plan,

heavily

should

firms.

unincorporated

for

we

the long run.
for

than the Federal

Each change

system.
the

be

a

Few legacies we shall

their lives
tax

for

the future

mold

long time.
.

significant

any

Revisions made this

rare.

will

year

on

unimportant.

such

relief

to

opposed

as

to

brand

to

seem

which

economic distorations.

proposed

criticize

To

may

man

on

Tax

split.

a

possibility

retail

tion to

and 16%, with the bracket

proposal

Treasury

allegedly designed

is

program

of income creation.

hurt.

the

Another

before

reduction of the first bracket rate

below 65%

help

cannot

is

10%

highly disW broadening features of the Treas¬
me, ' the&e
ury's program.; The sums involved

other than

are

lems

the

sibility of reducing the top rates

"people cooperating."

are

Taxes

with '.

Long-Run View

a

cf

than

less

with x a

year; more

of- (as

issues

'are

leadership to face

program

me

desirable

most

of what we want. Busi¬

more

economy

Need for

income.

our

most

the

are

we

at¬ direct value for the chief growth-

tempt to touch upon the budget¬
ary

of

employ

nesses

including

—

business that

to

seems

mended.

provide

They
to

sometimes get

is

effort

an

cut

to

one

use

The Administration

credited to it.

do

It pas

is

personal

faceted,

most

Businesses

jobs.

discussion

in

through

produce

repre¬

careful work.

merit;.than

those

'

know best.

we

Treasury's program

ir.ore

is

with

policies

"individuals"

business.

in

is

It

wrong.)

Every individual has

many

interest

human to identify "con¬

much

sents

vast,

a

C. Lowell Harriss

of others.

concession

a

of

off

unfortunate.

us

to

much

to right an old

move

a

and

structive"

post¬

reduce—or

so

which

depreciation

new

also

the

favorable

burden

pone—business tax payments. But

with

It is only

points

effective

the

1962

guidelines

associa¬

ns

rela¬

Treasury

on

tions make us

some

(The

of

and

familiar

The Adminis¬

provides

program

out that the investment tax credit

emotionally.
Cur

to

reduce the burdens on the process

business.

intel¬

lectually,

cut

total

the

of

more

tively little reduction in taxes on

omi-

eco n

—

caily,

allocate

to

be

de¬

not

In

important feature of

Administration

There

from

practice

the

will

more

inequalities in bearing

—

reduce rates has

.v. •

The second

the

there

Personal Income Tax Rates

would

alternative

.

rapidly.

more

of

seem

em¬

consumers,

a

be

the course of Federal

criminatory'; rates;"

spread broadly throughout

economy—to

:

of income creation.

associated

is

One

tration

groups

with which he

le

the

convinced,

am

will

the expense of government
come

ployees, to those who supply capi¬
tal. National income would grow

Business Taxation

Weight of

at¬

more

a

program

Treasury?

the

plan

I

press¬

breadth

(though

upon

fairness

period, help

"

insignifi-; the

not

the

upon,

spending).'

from

;

which

depends

base'

pend

distin¬

to

effects

longer

benefits,

would

trying to pair off "individuals"

U

for the

The

/

to new revenue sources, some

cease

the

explain why the tax is tolerated.

of which are suggested, and
with "business" in making
.tax changes.Suggestions dealt with include, also, eventual cut in
corporate tax to 30%, the widening of income brackets at the upperK
face up

short-term

those

supplementing Congressional hearings, and criteria to help lessen economic distortions, unfairness and, most importantly,
the burdens on business creation of income. Stressed is the need to
procedures

:

failure

and

tax

clear., The

be

not

may

doubt,

economic stimulus considerations

that short-run

fears

Harriss

Dr.

in

problems less

reduction

rate

cantly

most?. .The

benefit

would

Who

University, New York City

would
have
surprisingly
little
Of; revenue; potential even if food
itself- were included. To get $5" billion

In turn, however, the amount - would be hard.

possible

"politics."

reduction

,

most

Thursday, May 16, 1963

.

details.

but

course,;' rate

strong determination* including

.

changes which

some

objective, however, there must' be

Harriss,* Professor of Economics, Columbia

By C. Lowell

and

anything

.

i t

e

joined

;
Delaware

"

:

Mr. .Crosthw a

Morgan Crosthwaite

an¬

organization

in

first

the
1959

bringing with him several years'
experience

in

mutual

fund

sales

distribution.
A

resident

of

St.

Petersburg,

he will continue to represent both
Funds

throughout
'
"
:

Missouri.

•.

;

Florida

and

Volume

197

Number

6264.

and Financial Chronicle

The Commercial

.

.

(2013)

propriate in
aborted
would

like

By Morris Cohen,* Associate Editor, Fortune, New York City

[■;' Long-ranga-planning Is
mist-editor

'

.

he is

J cyclical

downturns should

planning which
;

assumes

8'/2%

writer is, confident,

achieve

can

we

;

in

fiscal

and
steel

strike

natural

it

sure

am

minority

a

believable

port

will

sound

than

but

lot

a

six

re¬

months

to

I

more

comparable

a

presented

My thesis is

report,

ago,

,

civilian

a

those

who

basis.

argued

of

stagnation.

the.

long

1959;

planning

were

actual

which

;

policy;

the

that

the

and

to

those

from

who

1958

were

automobiles

a

1954 and in 1955.

revival after

of

number

setbacks
the

thought it

.

and

over

past

to

a

decade of golden op*

as. a.

the

sagged,

..recovery

doubts about America's

new

rate.

and

will

1957

that

it

over-capacity that

more

realistic

talk

range

-

planning

Morris Cohen

for the

soaring sixties which

prevalent
It

only

few

a

were

ago.

years

is the job of statisticians and

who

must

ultimately

bear

The 1958

think

sharp

shift

mid-1957,

was

in

was

in the land.

arose

was

defense
at

for

our

what

is

highly

disputed fact that the.

for. the

of

enterprise,• i.e.; cession, while, the

the' individual

to management.

Lleave to.others,

qualified

more

public

than

to

I

policymakers

;

,

advjse,

who '/might- it

1/ hope

Naturally,

have

to. say v. will

relevant to

their

what

interests.

with

tive.

should

It

overall

an

This

ture,

course,

depression.

Rather,

in

The naxt

April of 1958.

attentive

just

had

and

But

as

might

not

audience.

couldn't

in short

one

go

we

the recovery

or¬

contin¬

early 1962, evidently the
were

having

some

effect.

Capital appropriations in the first

quarter of 1962.
the

However,

then

were

fourth

the highest

quarter

perform¬

the

would

ence.

The

►.

•

.to

posiwar

as

of

not

Rather,

as

should

and

it

trepi¬

should

challenge and

a

involve

the

would

These

R&D

.

the past two generations, and

t' at

includes

all

who

are

econo¬

mists and statisticians.

by

the

cars,

knows

untutored

who

Electrical

is

market

Longe

Range

Planning

though

even

the

Steel and

insists
There

:

its

two industries

are

ment,
fer to
events

my

judg¬

arid

by Mr. Plough

of U.

in the stock market

in this quick review of American

minating

business cycle history, always ap¬

panic

in

in

the

late

May.

Incidentally,. Sindlmger ahead

Company

week

ending

reports,
April

dollar volume of

of

the
the

steel

buying

consumer

volving sixteen durable items has
reached
In

all-time

an

other

high.

which

April visit
Steel to

S.

followed, cul¬

market

stock

That

it!

was

announced

words, the actual

the

planners.

I

refer,

of

industry

trical

public
be

the

Since

involved

the

to

elec¬

steel

controversy,

markets,
gies for

well

as

as

new

it

planning

will

markets

ucts,

both

also

It

Long-range

be

for

concerned

existing

at home

and

surprising that the indus¬

try

recoiled

has

for

capital

briefly.

from

commitments

spending,
the

By

but

last

the

1962, they were once again acting

boldly: planning for the best tech¬

second

abortive

locks

it

row,

can

go

now

recovery

if the

as

in

a

American

performance,

viewing in¬

acknowledge¬

at

behaving

with

are

no

longer

to

than

had forecast. This

significant

doubly

demand

better

any

because
backlogs

guarantee

announcd

Burns

success.

Rather, says our astute long-range

a

$250

ing mill.
bor

steel

will

that

pens

new

program

Ind„

initially
finish¬

million steel

Eventually, Burns Har¬
be

a

fully

integrated

dream'*

this

/installation

before the decade is out beContinued

on

page

Build Lasting Foundations

Of Knowledge Bridging

satisfy

mar¬

subject center
ment

plant and equip¬

on

outlays, and I shall be

phasizing them in
procedure

Come to the 2nd

interests in this

my own

Conference

special

a

point of view, and I don't

IBA Municipal

This

my paper.

represents

em¬

mean

to

neglect other aspects of long-range

planning that
not

more,

be equally,

may

if

The editorial

important.

be
Long Range Planning Setbacks/
Some
i

time

fully

.

may

long

range:

-

planning

1955-57

capital

was-

For those too young to

pr
.

^

for those who

the*

war

a

as

it

in

substantial tax

During 1954, the

lagged,

was

large reduction

outlays, and

cut in 1954.
omy

a

was




•the important

have for-,

of the Korean War in 1953
by

Your advertisement

boom.

gotten those golden days, the end
followed

supplement

of The Chronicle.

remember,

may

proceedings of the Municipal Conference of ;the I. B. A. to
Pick-Congress Hotel in Chicago from June 19-21, plus

the

was

in

spending

at

on-the-spot photographs, will again be featured in a special

recall .that. the. last

implemented;

held

econ¬

readjusting

in this special section will identify your firm

with

municipal field and the active Chicago markets.

For further information contact Edwin L.

Beck, Commercial and Financial

'

Chronicle, 25 Park Place, New York 7, N., Y.
Code 212)

mar¬

works; while still an "engi¬

neer's
may

its

Harbor,

such markets, including personnel

keting strategies, advertising poli¬
cies, financial requirements, and,
capital expenditures. It so hap¬

fur¬

casting and

Thus, last December, Bethlehem
Steel

high places that the econ¬

is

there

are

growing

a

in

we

almost everyone

of

oxygen

periods of

longest

is

in

and continuous

naces

be in for one of its emphasizing the major steel
expansion. In kets in the midwest.

economy may

omy

available

nology

prod¬

needs, distribution facilities,

of

to

ncanagement and say, instead of a

overseas.

inputs required to

only

quarter

would, therefore, be interested

in

in

should

efficient production

more

of goods and services.

with

new

technolo¬

was

ago

year

a

the

to

course,

and

utilities.

directly

per¬

spirits of long-range

They

accomplish their objec¬

not

..

formance in the marketplace
revived

to

tives.

that

as

12,

plans for the next six months in¬

tepiporary setback. I' re¬ stead
the spring of 1962 with1 the ment
by the

publicly

plan far

a

started

already

on

place of the death watch on the
of
national
economic
major statistics

second

setback, fortunately in

1959.

have

na¬

operations

op¬

portunity that is unique, at least
for

com¬

themselves determine

be

an

pany's research and. development
program.

be

to dimension.

uncharted future

•

treated

prior

will

faced with fear

dation.

not be

experi¬

yardsticks

expansions

an

net be

will

previous

available, at least
Such

therefore,/

on,

profit objec¬

and pace of the

scope,

the

the postwar period.

summer

it¬

concern

re¬

from

point of 1961 will have been

comparable

planning

long-range

suffered

of

the:White House/ The related drop

ppint I want to make

expansion

new

the

Not only cars, but he
major long-range programs. They
buying more furniture are
particularly intersting because
household equipment, cloth¬
these industries have to

keeps

abortive

an

planners

;

setting

summer,

.many*facets of ciompany

operations.
self

/

■/

Long-range planning, of
can. cover

I

be .somewhat

severest in the

planners
ah"

we

understand why

ued into

significant

quickly and dramatically turned

want to dabble in long-rarig&.plan¬
around

ning.

der?

a

re¬

way

As the recovery

can

through another

in

postwar period,, did not develop
into: a-major

have

since

1957*58

one

recovery,

the

un-

step along the

finally acknowledged in June

.1961,

Hadn't

of that

present purpose is the

the, responsibility

success

the

partly

about,

scoffed at, criticized,

at every

then

now

by

talked

most

long-range

ing boom of 1955-57.
But

com¬

summer;, capital

consumer

buying

upon

and

of

did

policy

least

/last

again,

once

American

ing, etc.

was

recession, which
sparked

subsequent recovery has

the

to this very day.

1956

in

many

more

its

cus¬

economy

planning.. It is reinforced,

range

and

of the capital spend¬

consequence

economists to interpret history to
those

on.

some

yet validate those predictions

may

glibly about, but

later

that

so

regained

bespeaks the return of long-

ance

and

to
the

saturated.

the

clucked over,

ap¬

big

resulted

possible

spring

know that

now

est level since 1957. This

denigrated, and doubted recovery,

proj¬

this capital boom become in

make

long

So

events

last

quarter of 1962, and by the

everyone

been

glowing future,

boom

a

of

and

late

early 1955, to

for major capital

at

We

soon

alarums

third

steadily

at

more

growing

the economic advance

despite the excursions and

the .mildest of the postwar period,

Business, in turn,

ects

these very setbacks

in

of

prepared

product

By this

covery
low

a

is

records.

From

incredible

the

summer,

posure

pro¬

Well, the 1960-61 recession

con¬

in

propriate

five
But

years.-

saw

started

homes

and

Let's

long, long-

come a

thinking

business

:

have

we

the

arid

pro¬

being

were,

economic future

the

American

a

planning.

in

the largest in

since

and

the

recov¬

Well,

way

r.ecord-lcng

-

disrupted

recovery

portunity,

was unconvinced, and
instead, bought large numbers of

is

due for

now

which

/Returned Composure

(2) .the

monetary

•,

the .1960's

as

economics,

range

-

long-range

sec¬

why bother

be

better

possible cost to

tomers

moting long-range .planning. Just fourth quarter soared to the high¬

still untutored in the higher

sumer,

one:

So

lowes:

must

we
a

.

cer¬

the

a

.

simple

1962.

in

was^" the udiscouragement it. appropriations rebounded in, the.

offered

long period

a

in

momentum: of

short

4960

Fortunately,

unsophisticated

a

There

then

in for

economy was

was

What was,unfortunate about

ery..?

average

of

-(3) ;the.

claimed
is

Burns

downturn

,

policy

stringency

■;// expansion/ Mr/ Cohen hopefully asks management and Washington
not to turn th«ir. backs on long-range planning.
This

half of

with

later

or

survive!

sustainable

a

ond

sooner

the

•

fully employed economy growing at 4%

a

by Arthur Burns

in

quarter; if not then,

tainly

University of Chi¬

that; the >1960

of long-range

way

second

basic

function of (1) the sharp reversal

rise in oapital spending in the three years 1963-65
which, if. not allowed to' grow too fast, could be followed by further

-

•

the

ing it had already started

hope the company and the country

year,-Note is taken ofma jo/long-range planning programs by
rsteel and electrical industries, of thefailureof the- auto jpdustry '
Jo recognize the market, and of developments influencing long-range

j planning. The

-

in

stand

planner,
supply

predict¬

even

argued then, and I believe history

per

.
*

■

not

famous

the

recession would not fol¬
some were

a

low, and

has since shown him to be correct,
*

'.pleased to see,;hgs been long overdue,: Mr,.,Cohen argues that mild
>

made

Surely

the

Here I

speech of early 1961.

cago

"

out fif ths dog-house and "Foiluna's" econo-

specifies why ,.its fsturn to respectability, which

his

in 1960.

reaffirm

to

long-

on

concerns

recovery

appraisal
in

discussion

a

planning,

range

13

(REctor 2*9570)—(Area

14

4

14

The Commercial and Financial Chronicle

(2014)

mand;

Whatever

Happened to

and

for the

t". ird

a

three shifts?

that

companies

service

with

the

come

capable of turning out

"dream" may run

such

a

between $2 and

In any event, Beth-

$2l& billion.

lehem Steel already has a

j,nnonihCriZad PIOiet

:*2cr?nnn

year;

a

of

cost

total

the

ingot

of

tons

10,000,000

!arid

in

plant

steel

largest

the world,

nnn

SInrt

.*

,?

.

.

Thesis

Schumpeter's

v

-

announced

.

In : other-, words,
long-range
planning which on the face of it

been languishing
flourishing,

f
of

intention

its

se

installing
«

!

.

and

,,

month

same

stated

that

it

.U

•chines in connection with its
.

..

.

,

basic

The steel

inaces.

i

.

o

fur-

Ssr * —
The

surge.

J

m

of

the

I

af
^IImnanifie do
leading companies L
ad

sound

so

,

nnf

not

surprising

industry where

one

knows

^

dramatically

everyone

book

for

example

planning
utilities
a

industry, long

SchumDeterian

stationary

P

long-range

namely

—

electric

the

also helps to illustrate

—

number of issues that have been

misunderstocd

electric

the

in

capital spending.

shows

power

field

of

The demand for
sign

no

dimunition; for example, this

of

year

it's going up by 7%, according to

** *

ha™
,,

conservative.

their

then -has

Why

spending

construction

on

lagged in recent years?

kpow the
capacity
to

.up

it

required

period,, and
its

fuller

growing

was

But

a

capital

in-

industry like the utilities,
in steel.

as

change in the
has taken

erators,
steam

the

cutting is crit-

ically important in
just

more

in

utilization.

the demand for cost

tensive

now

industry,

somewhat

un

than

1955-57

The

answer.

too, had built

We

utilities,

using

and

require

The technological

the form

of

both

atomic

conventional

to build.

years

however,
huge gen-

which

energy,

£

to replace the

capital
K

wQrn

stock

.

with
■_

,

„

old models.

same

But

the

.

Schum-

as

Pe^er himself emphasized, the in-

^

£

'

*

H

dirt^b

of

After the

events of last soring and summer,
a
number of the
leading electric

utilities, including Con Edison of

one

:c

.

,

low.

and

technology and

else simply

The

fol-

furnaces

oxygen

has to

are

sweeping the steel mills, and the
electric utilties almost

to be

seem

competing with each other in
dering bigger and
generators
them with
nies

interconnecting
and

more

located

efficient

more

and

01-

more

further

and

compa-

further

general

It gives

markets.
refer

to

impact

by

of

market

of the faster

must

rise

Consumer

risen

of

I

now,

In the

prices

Index

in

have

by only 1V2%, and 0.6% in

past
a

than

more

from

months, compared

seven

3%

rise

annual

1956 to 1960. In other words,

suppliers of

planning
the

size

next

ahead

the

of

their

past

indicator

market

Now

of

in

that

the

service

to have finally passed

seem

through

their

process,

relatively

long

future advances

readjustment

of

more

the

in disposable in¬

will be spent on goods and

comes

less

just

the

of

only

decade.

prices

cannot

experience

as

goods who

consumer

services

on

than

has

been

true in recent years.

..

„

.

'

to

therefrom,

tor capital spending. Reports
have it that some Washington
have

economists

billion,

These

expressed

their

be

may

other

and

growing

another

im¬

portant trend in long-range plan¬

ning,

phasis in
the

the

namely,

growing

The

ments

in

lion.

analysis,

it

is the

determines

the

In the final

who

consumer

markets

for

the

industrial companies. If somehow,
the

who

company

companies
ultimate

argued,

the

serves

indirectly through other

consumer

directly to the

go

can

customer,
would

he

company's

then,

it

tied

be

products.

is
the

to

Advertising

could then be directed to the final

buyer,
and

fluctuations

shipments

in

production could be avoided,

and

capital stock

3.4%.

The

the

4%

differ¬
national

the

in

$33

adds

long-range planning could be

of

capital.

0.8 %

at

replacement

1965

would

Together,

growth

the

require¬

be

the

$33

in

bil¬

billion

$31

capital

billion

stock

and

replacement

to $64 billion for capital

up

outlays

in

outlays

$50

1965;

for

Last

capital

billion.
these

on

lays

year*

goods

1965,

By

ac¬

28%

be

therefore,

goods,

for

spending

need

we

8^2%

an

1963,

cording

1964,

to

the

Graw-Hill

1965.

and

16th

of

plans,

that

be

by the
and

year,

ready

are

in

spending for the next three years.
I

suggest that long-range com¬

planning in such

pany
Is

sound

business

context

a

policy.

It

so

happens that it will also help to
provide

the

sound

facts

of

of

for

when

the

current capital

fully

are

setting

proper

public'. policy
absorbed

Washington,

budgeting

both ends

by
C.'s

D.

tal goods, the bare bones of which

fully

in the

emphasize

why

was

September,

1962, issue of Fortune, also
to

it

serves

would

ac¬

tually be detrimental to the na¬
engaged
in
satisfying
heartfelt thanks for the surge in directly
tional economic interest if capital
needs.
The
chemical
projects which evidently had been aido buying which they frankly consumer
industry is a leading example of spending were to rise by 15% a
germinating quietly in engineer- underestimated.
Other analysts,
year for three years,
instead of
ing and planning offices. The first closer to this market, have also this trend, and the recent an¬
the suggested 81//2%.
The faster
sign of this development can be bad to revise their judgments in nouncement by Allied Chemical
of its new showplace in New York growth would, of course, produce
seen
in the recent report
by the recent months. Seven years ago,
a
New

York, announced

Edison

Electric

orders

for

the

first

largest

Institute

generators

quarter

million

seven

many

kw

of

the

on

1963.

figure

of

amount

new

placed

in

The

obviously much

The

come.

delivery dates

indicate

a

$2.4

billion

running

for

are

which would add
watts to

luctant to recognize the
for

what

re-

1982-63
it

now

the

the

pro-

1980,

15 million

kilo-

generating capacity,
trebling
the existing

more

^apac!

than

ity.

expansion

through

According
new

eludes

to the company,
construction schedule in-

nine

thermal

units of 660,000

u

1

generating

kilowatts each

».'•




return

me

or

,

f"?

hlS

market will
faaCt tel*hJ^r1I¥>n Unlts ?nly '?
lata 1?60s' Inumy 3"dgS®nt;

to

shown

work

:ta!\ !'..t

right

meet

•

j

now

the

working

current

de¬

'0..;' v

of

as

it affects
it

has clearly

of

1929

return

economy

thereafter
terms.

of

It

is

in

must

be

long-range

planning

real

affects

must
the

to

full-em¬

a

and
4%

and

frame¬

a

growth
year

in

almost

20

a

now

years after the end of World War
II

and 35 years

after the shatter¬

ing experience of 1929.

W'e have

through four postwar busi¬
recessions
market

average

next

three

and

panic.

survived

No

outlays,

a

What
a

rn

The

The

talk¬

be

of1966

remarkable

is that companies

me

fact

should

the -markets

beyond.

doing

what they

McGraw-Hill

are

should.
of

survey

ad¬

vance

business spending plans for

1964

through

March,

1963,

1966,

taken

in

already shows this.

My personal hunch is that longrange

planners

come

popular

have

again

fellows.

I

they've -sharpened

their

and

hard

taken

their
vice

ing

cold,

a

markets.
their

to

skip

be¬

hope

pencils
look

at

Perhaps their ad¬

managements is be¬

effected that

so

we

may

even

altogether the next business

cycle

that

history

inevitably

rate

a

proceed

can

whatever

and

economy
show

we

as

long-

less smoothly to a growth

or

ments

must

us

Perhaps

effective

of

planning,

more

tells

happen.

consequence

have
up

to

take

adjust¬

place

will

changes only in

as

the

of growth.

*An
5th

address

by Mr. Cohen before
Forecasting Session cf

Annual

New

York

the

the
Statistical

N. Y. Chapter of the American

City.

The Boeing Co.

Note Sale

Arranged
Harriman Ripley & Co. Inc., New

York,

has

pany's 5%
the

to

ance

the

arranged

$50,000,000

of

sale

Boeing

The

of

Com-"

notes due May 1, 1983

.

Metropolitan

Life

Insur¬

Co. " of New York.

President

William

Boeing said,
arranged

in

Allen

M.

"The financing
recognition

tal requirements of the

of

of

was

the

company."

He referred to the $50,000,000

pended

by

for

Boeing

ex¬

property,

plant and equipment in 1962, and
reaffirmed
ous

the

company's

previ¬

statement that substantial ad¬

ditional expenditures for facilities
are

planned

the' next several

over

years.

Boston Inv. Club
To Hear Clendenin

actually hap¬

Good, I think, taking all the

hazards

of

making

decision¬

company

and

political

making into account.

decision¬

I

recognize,;

of course, the dangers inherent in
those

industries

what

economists

When

one

company

competitors

must

sometimes

much too
ever,

that

1955-57

the

I

soon.

the

temper

the

if

of

Secretary

the

will address

Dealers,

Club

Investment

on

the Boston
the

Pitfalls

Facing the "Securities Salesman,"
at

the

May

luncheon meeting

group's
16

at

House.'

Unioiv Oyster,

the
'

,,

'

Tariff for the luncheon

is $1.75

•"/

per person.

„

Va

goods

too

how¬

of

boom

It should

and

is

do think,

see no

There

limits

result

enthusiasm

planners who

District

National Association of Securities

expands, the

experience

one.

by

oligopoly.;

follow,

end

capital

sobering

characterized
call

BOSTON, Mass.—William S. Clen¬
denin,

the chances that such

sustained rise will

pen?

nomic

economy

the

the other hand, could

are

markets.

later the

bust.

a

for

in capital goods and national out¬

that

or

by

rise

in capital goods

years

on

should 'we plan on the assumption
sooner

8V2%

put, i.e., it is sustainable.

a

longer

1963

Manu¬

long-range

be followed by further expansion

The experience

years

placed

a

long-

on

as

Rather,

rate

stock

are

be

ployment

two

to

off.

goods.

deep-seated fears

repetition

should

Planning
overtime

the

company

WlU aU thls"mean for long-range
companies

five

that

thrown

ness

largest

policies.

long-

capital

policy and

of the past

a

for

planning, both

national

of

interest—the

outlook

range

1?65' What

the

main

my

range

gone

when

likelihood be followed

again

once

and

capacity.

boom, but, alas, it would in all

the

The

let

company

h,

of

But

try understandably has been

to

on

gram

only

This is the central issue

more

of

is

the record auto sales in 1955,

performance

some

Square

a* a time when it was somewhat
unfashionable to do so. Having
been burnt once, the auto indus-

na,maly> an
flavor in the planning now
going
tl ^ ^
among electric utilities, let me
JL JL Ji® irePlacement
recall the announcement made
by
Sf-.7 °. mco"1e>
the Pacific Gas and Electric Com! **
this too ■ changing. One
pany last February when the New
ful°
^ J tl=t
^
York papers were not
being pub- ,tbe P°f lblllty fthat we can see
lished. The company boldly talked
St™ng
3 .T,'
to

Time

or-

1966, 1967, and later.
Just

City's

latest indication of this trend.

the

was

capacity

dered for any three-month period
since the second quarter of
1956,
and with

b so happens, I wrote a short
analysis.on the auto market which
then challenged the sustainability

in

about

thing to
in

of

magnitude of the long-term capi¬

given here and which

reported

Remember, it

company

planning
ing

Pennsyl¬

vania
Avenue.
This analysis of
the three year perspective on capi¬

I have

here.

sug~

al¬

rises

planning: sharp

>

r;

around,;. I

of

upwards.

Incidentally, the utilities

expansions

re-1 Association,

half

second

again

once

better

doing

heading

time

now

facturing

Mc¬

capital

announced

shall

we

now

Ac¬

annual

survey

4%

at

evidence

of the future.v

is

em¬

takes two to three years to install

range
a

plant and equipment for each

year,

gest,

growing

the

po¬

fully

a

looking ahead to these

next

on

rise in national spending

average
on

The

in

companies

to be

seem

than

other words,

In

year.

larger

sustainable growth in

capital

to

ran

calculations, capital out¬

could

last

available,

per

cording to the GNP accounts, total

em¬

diversifica¬

tion to the consumer.

a

annum,

growing bv $31

estimated

year.

companies toward

many

so-called forward

per

efficiency

roughly

than

developments

influencing

be

by

or

econ¬

1965,growing at

between

ence

employed

that the

mean

the

at

$800 billion

about.. 4%

1965 would

this

s Earlier Auto Forecast
Thus, long-range planning does
no^ mean projecting the past in
a mechanical manner. Rather, at
*^s best, it« represents a careful
l°°k at the future, always keepinS uppermost the . notion that
change, not constancy, is the rule
oconomic life. It ..requires a
better comprehension of the
structure of the markets to be
served. I don't want to take up
aB
this paper in discussing each
market that makes up the GNP,
but I can't resist a few comments
on the market for automobiles,
implications,

would

From

year.

assump¬

capital goods

over

fully
by

say

of

-

cently,

the

„

Recal

the

omy,

the

was

A

spending

Diversification

Forward

of 1962

rate

in

for

an

recogni¬

a

need

company planning for the

a

fully

capital stock is represented by the

But

Price

economy

growth rate and the growth in the

in the price

service

ployed

: goods,

have ended.

the

year,

the

a

point out that the phenome¬
to

markets

growing at 4% '

The capital stock

dollars.

*

of

not

a

But

limits

tential

function

consumer

services,

seems

are

for

Consumer
..

and

for

this had been

consumer

to

I

limiting the size of

was

In part,

the

services.

spending

consumer

services

non

the

these

: markets

means

end

con¬

how the rising propor¬

anyone

the

for

demand
on

tion

market.

of

not, in
fact, should not stand in the way

long-range

what such

see

ceep-rooted.

tion

mild

should

assumes

Thursday, May 16, 1963

from

; •>;

year.

Let's

of

work

pointed out for the first time

tion

economy

per

chance to

a

earlier

spending

which

.

are

cycle has
But

of

way

planning

consumer

years ago, on

the

of

sumer

then

me

another

the

in

employed

of

the

removed

economic.

downturns

observation

future

away.
_

been

body

cyclical

indulge in making

may

the

decade

.

,

supplies?

Service Spending

more

about

take

^

g

'

methods

everyone

industry estimates, and they could
"be

hope I

the

-

the

Levelling Off
I

past

able for every°ne by introducing

text-

a

^
In

the influence of technology.

new

The other

•

How-

examples

•

is

in

abounds
abounds.

caoacitv
capacity

excess
excess

,

,

u

the

Large

ahead_

y

major

.

,

therefore

.

be

yt

^eaiea as hiton cost capacity in cne
steel

,

to

.

you

,'current

-

_

it

ed

fascinat-

is

case

.

k

chunks of capital investment have

S^

new

.

steelmaking

oxygen

,

pvnert

planning

was

continuous casting ma-

to, install

'

curtt

«

he

in

Steel

•

oxygen

costing about $100 million,
s
o

naces,

,

basic

six

par-

w

Consumer

mine, done nine

Applies

necessarily

mate¬

through

go

stand

least

"V
th0e0„h'^eSt transmlssl0n
voltage is 230,000.

stmrt,neS "eemed to to be
have
.P
turns out

of- ?'

Steel

of at

one million kw, and 1 200 miles
« 'ra™ion!lines of at least
-00,000 volts. The laigest generaor now in their system in 330,000

backlog

eX;,?C 3

•

others

seven

to

.

This is not to argue that

short-term business

the

auto

raw

have

wringer.

mean

the

their

rials, parts,, and

larger,

13

page

will

working

planning in associa'.ed in¬

dustries

-Continued from

is

What dees this

.

the

serve

of

Club Outing

to

those

limit to their

PITTSBURGH,. Pa.
June, 14,

limits,

eco¬

Spring

you

please,

that

Field

1

—

On

Friday,

1963, The Bond Club of

Pittsburgh

are

.

'

was

will

Outing

Club.

hold

at

the

its

Annual

Pittsburgh
.

V

Volume

197

Number

6264

.

*W'|

'fitwrs

wvwwwwwKrFir

*\ K**W

ntrmtrri^ftmi^

tfrtwi*' ""P

*1' »*n

irw

fWP

hy'"Wf*

'

«*

TjHfl

f f^ '.**7«; fe-Ml n» -^TYWf «*, ^ -1(

The Commercial and Financial Chronicle

.

.

Iflii

(2015)
steel

Production

Electric

The State of

Carioadings
Retail

627,430 for the

-

.

.

Our

Price

Auto

Business

Index

ters follows: '

'■

Commodity

Index

Price

duction

income,

and

industrial

Financial

pro¬

employment set

May 11—
York.!

1963

New

Reserve
in the

quarter,

Bank

of

the

;

,

cial sectors of the
economy

ditions.

tors in the

first

sec¬

ample and the demand for credit

sales

was

last

upswing in

and

year

sharp

a

orders for durable

new

Steel production increased to

lion

tons

by the end of April,

limits during the quarter.
rates

proximately the
uary,

above

the

somewhat

peak rate

February 1962

reached

While

rise in total
uted

to

steel, this is not the whole story.
A variety of producers of consum¬
and

er

business

goods

also

have

reported
and

an
increase in orders,
higher levels of output of dur¬

able

goods

need

for

steel
;

to

would

larger

indicate

quarter

sales

inventories

during

a

output and employment,

buying did

recorded

the

level

not

the

first

consumer

off

in

largest

the

of

quar¬

May

11

This rate

of

increase continued

unabated into the first quarter of

govern¬

4.

The
the

high

fourth

The

rate

of

auto

earlier

-

rates

until

the

quarter, reflecting
supply of long-term

large

tive

sales

in

The

recent

bills

almost

were

three-month

on

20

basis

higher at the end of
at the

time

same

Long-term

ward

output

voiced

and

steel

by

leaders

labor

rent

did

than

March

26,

put

and

drift, and rates

most

of the

Bank
usual

the

seasonal

buying

1959 during

declines

than

in

loans,

Not

Families

surveyed

to

in¬

of rises.

The

•.

of

concession of

a

nedy's

large volume in the

overall

steel

slightly in the first quarter in

estate loans at commercial

even

more

sumer

,

y

credit,

which

rose

rapidly than did

con¬

in

as

ments

of
in

1962.

the

Banks'

Treasury

same

invest¬

securities
and

in

in

than

The

the

state

first

and

local

Sales of automobiles in the first

four
rate

months

were

which

would

at

of

make

1963

a

record year if continued. Most in¬

dustry
that
even

experts,

the

1963

last year's

implying

a

however,
total

will

doubt
exceed

counts and

in

for

decline

million
from

the

or

savings

and

Pittsburgh

quarter

of

1962

for

The money

side

Business investment—held back

such

by such unfavorable developments
in

the

spring of 1962—has lagged behind

supply—private de-r

deposits plus

currency

out¬

increased

little after mid-January and

the

at

end

of

March

about 2%

larger than
r.:::'" c?':" ''
v:

lier.

was

a

only

year ear¬

h"

th-V:

newed

been the prime factor in the,
cent

for

construction

machinery,

and

able

goods/ have

although

other

1862
Bank

clearings

cars,

machine

increased

recent

6.1%

Week's

Above

months

dur¬
sub¬

and

in

the

forged ahead of

latest
a

year

Preliminary figures compiled
by the Chronicle, based upon teler

at

mar¬

ings

gins for each month from Novem¬

the

ber through February.

Our




;

industry

Than

,

r

ing.

than

magazine
Mills
on

United

to

were-

States

for

obtain

6.1%

which

weekly

above

totals

is

clear¬

those

corresponding week last

preliminary

it

of

year.

stand

at

Steelmaking

everything

else

Order

edging

drop

unfavorable
labor
weeks

front

almost

standard

that

would

die steels who

higher

Mill

plates
tin

carbon
are

plate,

rescinded

of

steel

an

the
few

ahead

advanced

are

makers
orders

week

intends

In

increase

respects,

many

easing

acar*ciri?.

o;c*ors

of

July

could

at

the

July

Mills

be

as

question
orders

still

are

than

more,

for

And

But
auto¬

one

June.

as

an

will

June. Barring a quick

settlement, the month

of

so,

July.

that

to

orders,

or

for

reports

over

strong

expect

appliance

pullback

steel

more

of

.ca¬

products.

products
than

-

is

taking

100%

flat-rolled

other

are

seasonal

-

> '

,

Output

8.2%

Above

1962

Week

Auto

output

and

their

.

action

grades

when
to post

high

however,

is

indi¬

finished

on

steel.

It

$150.69, the week before; $150.52:
month

a

and $149.96,

ago;

a

quarter

will

for

The

the

makers

port

year.

order

71

sec¬

Many firms

backlogs.

"selected

In

firms

.

first

hike'

study

a

(excluding

quarter

sales

for

of

10;

profits

up

for 5 out of

10.

Com¬

bined

sales

out

3%

were

the

first,

above

quarter,
were

slightly

Levels

Though

Inventory Trails Year-Ago Period
The buildup in steel inventories
trail

to

the

t'

comparable

week,
units

and

8,2%

made, in

cars

perioi

of

that for entire

724,892-unit

level

ferson

biggest
' ' >

\

the

>

output

in

this

return

Chrysler

May
close

industry's

e

boost

reflects

to

Corp.'s

y./

week

operations

Detroit

Jef¬

Ave, plant, which resumed

assembly Monday after 10 days of
shutdown

for

re-equipment.

The

plant produces Chrysler-Imperiai-

Dodge 880

*

cars.

in

the; industry,

•

de¬

spite -double-shifting
at
many
plants, was extensive again. Ford
Motor
lines

Co.
last

Motors
ties

year-ago

a

produce

'

Overtime

Off

last

ago

will

1h"\

1962.

said.

said .the

163,719

weeks

record

1955,

The

rf

1955,

ago.

year..

than 4% of sales.

Output

from

the. 156,767

the
•

for

programmed

for

corresponding

to

in

set

have

Ward's said

re¬

up

6

the
year

this

Reports

agency

assemblies

3.6%

a

S.

production

month

statistical

auto

the-- decisive: cf

be

and

U.

highest level

May will rival the all-time

the; industry

Steel says it looks like the

the
its

Ward's .Automotive

year

ago.

in

reach

year

entire

a

in¬

will

166.586

rate.

to

Industry

less

would

than

(hen

worked

had" four

and

its

of

10

Saturday,

Chevrolet facili¬

combination

one

car

and ' General

Buickcon¬

in

ment, due almost entirely to gains

the

however,

and

the

closed

were

company's

(Mich.) plant

idle

was

Wlx-

a

tons

ago

Monday

tons in

last

Saturday. The closings

to

Effect

1962..; Stock? tories

days

supply,

of

"down"

and

adjustments
some

of

.

week

again
were

in' inven¬

-

Ford

the

car

lines.

Elsewhere, American Motors! at
Kenosha

for

are

now

more

no-strike

fi

And

a

is

not

secondary

hope¬

settlement.

announcement

off

of

formal

expected
wave

of

to

to

big

the

are

high

inventories

extended period. The

delay in

a

its

six

(Wis.),

Chrysler

Corp.,

plants, and Studebaker

Corp., at South Bend

(Ind.), pro¬

grammed normal five-day opera¬
tions.

During last week, output of "63

customers

eye

in

in¬

buying.
some

carrying
a

om

metalworking weekly

negotiations

is

Friday,

year-^rgo peak,

89

plants at Kansas City and

Jose,

hand.

on

million

April

users

ginning
order

at

San

about

million

1.4

18.7

Ford

days

.

Steel

are

improve¬

be

the

the national

said.

78

will; have

totaled

hot Even

,

only

17.3 million tons of steel

ventory

on

total

the; current; chew-up

at

......

pipe

their

tool

at $150.92 a net ton last week-

was

wire,

some

the
a

mac5©, two

set

say

next

in

above

and

centers

of

mills

some

and

composite

more

books have shown

However,

cated by Steels arithmetical
prir-

ful

.

standard

for June.

20%

bookings.

Auto

certain

on

uptrend,

bars,

and

of

leading producer failed

buy¬

a

sheets,

Delivery times

basis

were

creases.

reported slightly

termed normal.
Service

on

next

„

deliveries

about

the

strength.

recently announced

prices

probably reached

trigger

ing surge.

are

there's

the

did

is

on

the

prices

producers

inventories

development
within

normal.

split

,

backlogs

unless

are

period, Iron Age maga-'
Oldsmobile - Pontiac
plant
?
Steel zine reported.
By the end of June, stocks are tinuing operations that day.

upward.

to

of June

pi "the

Several

structurals, pipe, wire, and stain¬ This
sheets.

considered

month

e

ton.

supply

less

T

week

expected

except

is

mills

on No. 1
heavy melt¬
ing grade held at ' $29.50 a gross

through June
on

>not

estimated

was

scrap

has

levels,

unchanged last week. Steel's price

products, and

they're heavily booked

3%

showing

for

this

ing in faster than it

composite

,-

seasonally,

rolled

But

significant

one

*

Seasonally

seld out

flat

Output

May 11

a

June

is affected; it says a rate of

to

pacity

average

reported.

are

most

following

Earnings, down 2%,

high level and expand¬

more

year,

annua*

an

even

of

as
to 3the
cutlook for July.
Tonnage is com¬

by Steel at 2,590,000 tons.

"Consumption of steel is contin¬ continues
a

hi

its upward

resume

setback.

total -in

Expanding

Is

this

at

was

week

week ended

;

136 6

136.8

Consumption
More

extended.

possible

highs by wide

Steel

May 11, clearings for all cities of
the

week

Steel

rolled

,

this

of

tons

Some

.the
magazine says. One mill estimates
less than 5% of its booked ton¬

calen¬

a

97.5 million tons.

Output will
trend

net tons

that this

were

139 ,Y

; "Index .of production based on
weekly, production, for 1957-1959.

graphic advices from the chief
cities of the country, indicate that
for
the
week
ended

declined in March, they had been

rate of only

annual

million

start

ingot production

more

start

Saturday,

contracts

Y—141

127

But order volume will

Volume

ago.

producers'

construction

successive

Clearings

statement

trucks, freight

tools

stantially in

Bank

re¬

business improvement.

Orders

133

Total

the

steelmakers),

151

Western ;

117

in¬

steel

an

were

138

140

still

consumer

spending. However, re¬
vigor in investment has

*

132133

:

—

S.

158

\

141

.Louis-;

U.

most steel

was

1955., At

of

154

154

•

—

Cincinnati.
St.

128
132

157

Chicago
.

<y

134

—

Detroit

uing at

deposits.

banks—therefore,

very

when

banks increased the interest
offered

rates of production and sales later

128

•

142 T '■

'

August.

reached

there

produced in

ever

year

profits this

134
:

into

show

Tons

a

buildup.

setbacks

automotive

period for metalworking sales and

May 4

129
144

Cleveland

ac¬

savings

dar

ond

■

the

ingots. The

country

Ingot

May 11

—_

Southern

deposits.

time

units,

the year.

of

1962

savings and loan shares

while

first

many

current

market break

holdings

12,

Production for
Week Ending

Coast——

_1__

Youngstown

interest

deposits continued to expand rap¬
idly, the pace was slower than in

in

the stock

time

their demand

mand

as

as

to

41,846,000

'■Index of

,J'y

1

East

Buffalo

making only modest increases

But

'

District—

show

amounts

such assets

rates

7.1

V

'

:

.

1962.

to

through

—

1-May

;

less

quarter

preference

annual

an

Jan..

a

stock

.

Of

tonnage, into July, and July steel

may

at

rate of about 130 million

•

North

somewhat

on

production of 43,287,000 net tons
(*122.3%).
1
1
:

maturi¬

continued

public

strong

a

of
rose

prices

totaled

lengthened; investments

obligations

Steel,

(*118.2%) which is 3.3%

the

,

in

S.

greatest de¬

year

has

net tons

much

as

U.

the output of ingots and

castings
below

and

purchases of durables.

forcing

Million

Right now,

qualified with

in

this

—

banks, however, increased almost

stantial

consumer

far

May 11

earning liquid assets, adding sub¬

of

selective

on

raised

items

there's

dustry is producing at

An

So

twice

indicated

use

have

wages

including

If

I

'/.

,

hints

are

now.

minor

The

an t

ingot tons

will
back

ease

dropoff" in "order

a

day

due

or

mand.

con¬

ahead, and this confidence
broader

for

Almost all steel

generally

those

Commer¬

months

by

1954

sequence

against

-

costs up.

cial and industrial loans decreased

dealers and brokers.

also

is

steel

of

President Ken¬

"Go-Ahead"

admonition

an

an

hedge-

fall

higher

been enhanced by

May!

expect

nage

probably

million

for

130

36%

a

strike

a

delayed,
will

;

Mills

2

reopening,

Annual Outpui Rate

••

..

chances

be

11.5

predicted

of

industry experienced such

have

dicated that they plan to
buy dur¬
able goods in

the

long sustained weekly

companies

governments

recently

'•

possible

a

since

with the decline centered in loans

were

:X

since

demand for

use

steel price increases

greater

quarter declined

largely

output

nervous

against

strike.

up¬

their low¬

larger

was

witnessed

as

will

the

The

attributable to

well

as

America
executive

quick settlement, June output
drop about 15%.

cur¬

'

26

gain in output

has the

quarter.

reported

ties

•

the

1960.

Jan.

•

a

mu¬

corporate

on

levels since early

than

mortgage

at

were

the

attributable

about

in the past three months

pace

McDonald.

contract

a

production

match

op¬

The sustained upward steel out¬
since

Committee

of

'

there

leveling-off in the

report

industry's

J.

..."

V

are

progress

steel

greater

to

.

•

Already

rates, any

official

the

.

-

.

.

un¬

executives

Steelworkers

June

of

the

of

the

tendency

stockpiling, Iron Age pointed
-

labor,

McDonald

negotiations.

weekly

any

and

not follow

maintained in the first quarter Of
1963. Thus further gains in retail
are

Mr.

off

The

element

an

David

cutbacks

last

consecu¬

has accompanied

timism

earlier.

year

securities

Aaa securities
est

a

points

March

corporate

quarter

other lines.

week

to

leveling

steel

yields

demand strongest for
larger, more
fully equipped models—was about

trade

Prior

1960.

an

there's

the

out.-

their

committee May 14-15 on HRC dis¬
cussions.
If

oil

largest since

Relations

United

weekly rises in steel produc¬

advancing current

Real

1962—with

to

week

won't

but

president, will brief his

2,544,000

week there had been 13,

Market

in April.

quarter of

In¬

week

2,548,000 tons

0.2%.

rose

for

(HRC).

(*136.6%) in the week end¬

ing May

below

1963, and preliminary information trast with a
slight rise in the first
indicates that sales held close to three
months of 1962.
the first quarter level

Steel

the

against

as

to

ter.

and

adds

from

Human

compiled by

for

was

funds relative to investor demand

1962

gain

during the fourth

year

year

nicipal

the

long-term

however, remained

loan rates

earlier. Unlike

year

on

September, 1962.

last days of the

of

than 7% above

were more

the level of

the

•.

support operations.

Retail

but

the

since

Rates

ments,

the

"hedge" buying of

Iron

report

Week

output by 44.4% .and

moderately to the high¬

levels

est

be attrib¬

can

data

April,

be the

March,

waiting

Pace and

Year-Ago

in

Metalworking

week's output exceeded last year's

following month.

output

strike

in Jan¬

as

intermediate—and

on

1.3

moved up

prior to the labor-

substantial part of

a

same

ap¬

—

long-term government bonds had

in

management settlement concluded
at the end of the

rates

were

ended

tion.

month

-

Treasury bills in March

up

about 35% from the January level.

production

three

on

527,033

probably

certainty to the outlook.

4.3

production

output

any

narrow

This

put

provide

.

While

an

than 130 mil¬

more

to

.+

American

tons,

over-all increase in interest rates.
Interest rates fluctuated within

goods in January and February.
annual rate of

supply of funds continued

inadequate

806,571

of

situation

1,380,617— 6.3
1,126,000 ■+ 1.3

•

841,071;

Over

stitute,

those

6.6

+

520,350

(*136.8%)

quarter of 1963.

Forerunning these developments
were
the
improvement in retail

The

the

did not

reflect the optimism of other

1,294,279
1,141,000
..

According to

Bank noted that the finan¬

serve

noted

May issue of Business Con¬

late

44.4%

%

f

•.

did

negotiations,

grow

much business this month

as

they

as

of

.

,

shipments will

$16,815,566

Steel, Resumes Upward

\

the Chicago Federal Re¬

economy,

Federal

Chicago

of

1962

$17,919;051

Bcston—Y
Kansas City

Turning to another facet of the

heading for still higher levels for
second

Lack

Optimism

new

records in March and appear to be

the

Sector's

book

1

.

factor.

-Steelmakers

(000s omitted )——-

Chicago..—
Philadelphia

Personal

.

Week End.

Failures

fpr

summary

consumption. Hedge buying is
minor

a

of the principal money cen¬

some

Production

in

$29,987,-

week in 1962.

same

comparative

Trade

rood

TRADE and INDUSTRY

1 against

$31,803,910,325

Output

15

be¬

cost

of

for

an

longer there

formal

reopening

model

cars

climbed

to

5,472,678

according to Ward's. This will ex¬
ceed

production

model year as

for

recently

Continued

,

an

as
on

entire

the 1961
page

16

i-f

,

"M+

Commercial and Financial Chronicle

The
16

wholesale

and INDUSTRY

The State of TRADE

5,408,625 cars

of

Loading

This
cars

14,142

of

loadings represented an inof

Output was 250,000,000

in

approach

Despite

over-all
gain

chilly temperatures,

and

average

1962

in

by

generated

car-

^ow

a

received

hoating equipment as well as

and

tbe

interest

due

ed Dun & Bradstreet, Inc. Casual-

carg

perennjai
'

continuing increase* in the
average capacity of freight cars,

ties pushed a little above last
year's toll of 310 in the similar
week and were even with the prewar toll of 321 in 1939. However
they continued to fall far short
of the 368 businesses failing in the

more

of ton-miles vs. carloadings is
the

coupled with heavier loading and
greater average length of haul.
There

15,624

were

with

loaded

cars

one

re-

more

or

—re*'#* —r—
containers
(piggyback)
week

(which

ended

April

27,-1963

included

were

47

week

a

of

increase

the

1962

2,125

and

4,199

cars

the

first

totaled

17

248,866.
of

crease

weeks

for

.cars

30,748

of,

in

U. S.

There

railroad

this

type

week

traffic

week

58

in

in

Intercity

the

in

1961
6

this

year's

one

.

truck

erciy

week

ended

4

was

American

week

of

Trucking

?owOU1lCe^
3.9% ahead

the

in

an

even

1% below the volume in the

responding

cor-

1962,

the

Associations

These

areas

y

flpct.c
flects

than

findings

based

are

mon

conducted by

the ATA De-

The

Economics.
tnnnnffp

report

Viort^i^

tonnage

of

handled

truck

carriers

at

more

terminals of
of

general

re-

freight

while

showed
week

with

the

is

in

Lumber

feet

4

The

compared

in

pattern

line

found

years.

and

to"'+6;
'

Atlantic

South

A+1

and

+4; East North Cen¬
Central

South

West

•

Nationwide ' Department ~ Store
Sales Drop 4% Below Last
1
•- Year's Rate
„

store, sales

on > a

country-wideJaasis las Jtaken- from
Federal

silver

sCran

ho<*s

price

level reached

record this

week

Drops

4.6%

stLd
ike

the

sin

date

at

e

Climbing

Inc.

index
SeDt

272^5

increases

wholesale

a^

the

the

week

ended

236,844,000

board

to

261,294,000

in

year-ago week according to
reports from regional associations,

Compared with 1962 levels, out-

dipped

4.6%;

dropped 18.6%

byp20.6%.
Following
of

new

orders

and shipments fell

are

the

board

weeks indicated:




they

above

ran

to

4%

ended

it

To counterbalance
in

commoditv

costs

in¬

for

May

4,

corn-

To«o

successive

figures

feet

for

in
the

something
also

■

markedly
comparable

year's

last

above

performance.

the four-week

In

year,

markets, there

the

of

were

period, ended

May 4> 1963> sales §ained +2%
adjusted over the corresponding
period in 1962 for the country's

index

parable 1962

wheat.

in

for the

were

fractional

first

Fur-

time

above

ran

this
com-

levels.

^

System,

serve

department

store

week

adjusted

■

^

i0

over

'

0

comparable

the

'

week

a

earlier and 269 56

a month ago.

Three

Steady

.

districts'

jjwr /

\

retail

in¬

dollar volume

creased 3% (adjusted) over that

Weeks

.

reached

level

since

within

one

Price increases
wholesale

as

$5.80,

Feb.
cent

<

the

as

that for department stores,

26.

It

of

the

parable

week

last

were

markets

chalked
for

up

most

recent

cluding

weeks

_

substantially outweighed the dips Ori

steers.
&

Bradstreet,

the

and

was

combined.

the

same

as

stores-—1-2%.'

non-ferrous

have

.

was

for

favor

To

'

*

.

spectators, the quality

some

items

in

market

held
in

had

general

where they soon

1

Pvnp

for

long,

so

investors

since

don't forever

City, members

price/earnings multiples

and small yields that are still in

selling

Myers

last

times

offering

atB

however

in--

pay

quality

for

top-grade it might be.
An Anniversary

the

of

end

the

traditional

on

the

of

the

1962

high

a

price

torians

The

stock

return on invested
18%. It has a
record of boosting sales and earn¬
showed

year

a

of
for

almost

after

year

profit

has

break,
his-

sent

;

conclude

years

has

the

after

a

over-enthusi-

it

was

businessmen

when

with

sioned

the

a

ago

in

due

ago

the

improvement

Where

course.

10

brought

company

the

future

level

is

operating

ahead

times

at
is

talk

the

and

Currently

lacking.

was

better

"

'

v

'

was

more

able

to

8%

than

brought down to net.
The

price for

growth has been

high in the stock market for several years now.

back

its

But Bristol Myers

high tag

in

that,

growth

10

with solid

has

years,

boosted its sales by some 258%,
_

Machine

Tool

Companies

'

Becoming Popular

With business prospering, and
new tax incentives on the record,
the machine tool companies were
in many circles. There
also on the record at least
survey showing that more

popular

boom' ,conditions "was

as

spread out.

high-

a

of

5%

than

less

company

slightly

show

nrofit-lps«!

on

years

tenth

of sales down to net earnings, last

disillu-

were

inindi-

no

a

Can

year

with

consecutive

Administration,

ppnfpypH

talk

tbp

it

last

steadily

cation that there won't be

year

.

in

thinking, too, is more

favorable than

high

the

for

creased its dividend

low-gra5e items.

Business

even

And

margin.

mar-

market

speculative

while

already

year

its

on

bull

upswings

and

capital of

nine

comparisons.

normal

issues

ary

fact

the

Bristol Myers is. highly-:re-f
garded as a profit maker and last

three

scurrying back to the 1929

record for

is

tag

a

of

violence

for

one

machine tools are overage in this
count.ry t0?ay tha" S1"ce the de"
cigaret makers to aluminum pro- Passion of the 30 s w en coipoducers
and
brass
mills
ak, an/ fate funds just weren t available
added indication of business conto'modernize. Nearly two-thirds
Price increases

fidence

the

in

are

being posted

running

lines

diverse

by

from

of industry s

outlook.

issues

based mostly

on

the

recent

of

New

than

to

the

Airlines,
showed

play

be

false

for

in

more

old and nearly 20%

over

the

hopes for

moreAnd it is only in the last several
years

that the

machine tool in-

these

issues

dustry has been scoring breakthroughts in ultra-modern, auto-

solidly

based

mated,

multi-purpose

lower

price

stirring.

instance,

per-share

ma=hlneJ t00ls,aroe„L°

years

have been in service 20 years or

Airline Prospects

airline

the

seems

Inch, Mario Ermini to partnership.

be-

indications

these

against

But
of

the

of the first anniversary

eve

which

New York

Exchange, will admit Aldo

well

"

-

of

first

stages

only

ket, there is litle trepidation even

Street?

York

30-

and

earnings

return- of

a"

low 2%.

improving

And since this transition is

years,

the

than

more

year's

ings

premiums

creasing

Despite several abortive flurries

TTnl

on

leadership.^they have>.that

general

in

TOndall

other issues

are.many

at high

to

come

could relinquish

improvement in their operations,

60 WaU

There

hand, including the drugs, selling

4

11
-

..

.

or more

#

better.

jin- favor because of their basic quality status.
One such is Bristol

division

of

long.

so

the

giants of

metal

out

been

Solid

Aurnit

June

u"ter

Stock
Dun

hunt

a

million,

;]:
V Available Quality Issues

correction

occasion the

on

the

JryiiG, lVGnQ3;ll

only

in ^holesale cost of potatoes and
flour, wheat,
barley, cocoa, eggs,

year,

year-to-year increase for the four

five food items: sugar, hogs, hams, jjQ
bellies and lard. But, these gains

The

a.sign that

business

comParahle 1962 level of $5.81 but ending May 4,
remained considerably below the department
the $5'90 reSistered on the similar
day of 1961,
"Dttv^/S
at

which

The

present.

1961,

showed

$54

\

prosperity-and confidence in the

l monlks low
tke Past three According to the Bureau of the
weeks, the wholesale Food price Census, total retail sales were up
mdex, compiled by Dun & Brad- slightly—by 1.0%—from the cornhighest

still at

ebb,

as

td

now

are

year

than

more

for

turn
was

demanding

age

the

over

which appears to be a significant

Ano^ker broader- set of data indicates that sales in the MaY 4"
.

a strong upswing from the bad

Inc.,

of

ending week were not quite

Wholesale Food Price Index Turns

_

net

directed at quality items,

still

asm

°f
rUng UP f°r correaPonding Period
years 27133 on the simllar date* a year
Up After

de-

last

/T

Wholesale Commodity Price Index May 4) the 12 department store
to 272.50 from 269.53

at

rash
•

...

°n, M°nday. May13' the TDally J* te

rose

flying

low

that

million in

$38

airlines

weren't building up to any danger

point

of

the

regarded

was

excesses

deficit

a

too

a

is

behind for most lines. And against

in New York City for the stock market start with the blue
ended May 4 declined 1%
chips, spread out to the second-

sales

year-ago week,

^

of

favorable

a

swinging

of

transport

jet

weren't

Speculative interest

gain

weekiy

stu-

made

costs

the

averages.

weeks ago there had

t

jch

any

when

1962

2i

except

thermore,

pulled

in

the

pared Wltk the llke Penod in 1962>

eight-month

Monday, reported Dun

Bradstreet,

272.50,

an

Board's

(adjusted)

Reserve

declined

heavy

spite the relatively high standing
of

the outlook

industry generally, the

being

signals

danger

many

last year,

handed down,

there

So

future.

the

For

well for

augers

is

point

and

market

To the

up.

Hawaiian route,

a

decision

strength

new

than

more

js ^ka|. much better if

trading

reactionary

share

a

to

Western

better showing by around

And with an application pending

when the gen-

when

that

_l«

_la

+2

andMiddte

New England

been

street,

Week

production

totaled

thousands

steel

suear

the

put

tral

Central

North

Boosted by substantial advances

week-to-

previous

in

areas

closely

1962

States

ton-

four

Production

Below

United

increased

seasonal

time

metropolitan

only

increase

Lumber

May

30

decreases.

this

at

week,

registered

nage,

followLg

A"

Compared with the immediately
areas

by the

the

comoar-

com¬

throughout the country.

preceding

+2;

the

September

..-y^y..

amounts
the

on

of 34 metropolitan

survey

400

to

dex

and

partment of Research and Trans-

port

f

leadiug department store centers.
Truck tonnage was few declines from the prior week
According to the Federal Reof the volume for the

Prayi°us wefk of I^is year.
wee

-2

the

Since

Hits Highest Level

&

tonnage

May

,

Central, and Mountain

Pacific 0 to

«n sugai^ steel scrap, silver nogs Untu
lamba' the general wholesale

,

n

,

,

from

Dercentases- West

Department

and

Below

heading

i,

$1

the airline stu-

year,

projecting

are

an even

familiar,

of

one

up

was

expanding

the

...

1.0%

varipH

gguW j^Js

were

Wholesale Commodity Price Index

year

'

Trucking

failures

6%

to

w?£xx, s?ss-s
East South

market

cropped

Atlantic +4 to + 8.

compared with 48 in

as

y

drying

statement dents, such action

2%

from

g

their

preceding week and 37 in the

corresponding

•

ranged

271

equal

re_
.

corresponding week of 1962.

I

Year-Ago Week's
T

the

systems originating

compared with 58

and

ago

of

class

J*®
not quite

Forty' Canadian

period

61

were

to

vo,ume

p,tiTnatp,'

encouraging

eral

Wednesday

$100,000,

upturn

an

was

rec0rded

a?,d. 68f®?..C5®,.0r 38:??"
the

1961.

size

setters—new

pace

The pattern was still a

garden

goods,

Thg

comparable 1962 level of 278.

14.1%

corresponding

this

under

losses

ST' fa
they did

in-

an

or

cars

there

1963

in

the, 32

home

from

boost

last year. Among casualties

involving

loading
loadings

the corresponding period

above

group

36.8%

or

ab0^u^iv!6niZ^;k
Cumulative piggyback
for

15.7%

cars or

corresponding week of

and .exceeded

earlier

considerably
above

,
.top-

ping $100,000 inched up to 51 from

that

in

-"s=
liabilities

with

Failures:

in

way

the

reached

and

week

dents

for

and

ceding

1961.

traffic this

Favorable Technical Pattern

solid

a

highest level since April 4, report-

20.1%

and

1962

tinuing,

second

sales for the

DOorlv

favorable comparison

of

With the earnings increase coneven without the extra

which, if

electric

f„

part due to the traffic han-

Fair.

in

level

best

years

-

ended May 7 from 306 in the pre-

an

three

housewares, confection- surpassed. The industrial average
^ ^ flowers.
While clothing long since eclipsed the historic top
,except for women's accessories of a generation ago.

.

Business FailuresEdge Highest
lve
ee s
Commercial and industrial fail- fared
ures turned up to 322 in the weekAweek

corresponding

the

over

more

,

.

are

moderate

a

the

of

output

showed

volume

over

the

its

at

was

than

year

week

estimated at approximately 12.7 billion, an increase of
4, 1963,

ported

died for last year's Seattle World's

above the
1961.

8.7%

or

loadings in the week ended May

to

rail

the

comparable over the comparable year - ago follow through develops, could
week, or an increase over the level. Gift shopping centered on put it in position to challenge its
ago week or 7.0%,
apparel accessories, jewelry, small 1929 peak which has never been

Ton-miles

The

the airline industry, a showing in

total

cars

week

This line's reports were among
the brighter ones emanating from

change,

a

the

all-time

of its

some

for

that
I

show of general

on any new

And,

indication

an

first

Against

hovering

average

reach

easy

this year's

reported $1.22

trend is still underway.

with

rest

up

cents,

75

simmered

in strength.

suffering severe rains

areas

some

within

9. peak

May

showings

retail

poor

the

much

well-earned

a

industrial

the

Day

in

purchases

Wednesday,

ended

week

Mother's

of

retail

pretty
to

down

1,084,000,000 kwh. above the

corresponding

6.8%

the

week

and

turn of weather

warmer

it

rails, the stock market this

an(j

above

47,537

kwh.,

16,279,000

of

total

week's

corresponding

previous

the

than

more

A

quarter

of the

Buying

Spur

And for

favorites, including some

1962, and an increase of

1%

week

kwh.

3,568 cars or six-tenths
the

Weather

sparked

Electric

Edison

the

to

COrding
Institute.

crease

kwh., ac-

timated at 16,529,000,000

week.
The

energy

before.

Warmer

and

Day

$3.50,

selected

Mother's

industry for the week
ended Saturday, May 11, was es-

above the preceding

2.5%

or

of

increase

an

was

from 60 cents the year

Except for occasional flareups by

Level

electric light

the

by

is to show the general
prices at the whole¬

sale level.

and power

announced,

Railroads

American

distributed

of

7.0%

to

electric

of

amount

The

totaled

Association

the

cars,

4

May

ended

week

in

freight

revenue

WALLACE STREETE

BY

<

chief

Its

trend of food

Year's

Last

Over

The Market... And You

It is not

index.

cost-of-living

272^586 function

222,117

Rises

Output

Electric

a

261,294

Sewor'S "I22""

Week

Year's

Last

Above

590,981

Thursday, May 16, 1963

.

.

rep¬

of the price

total

and meat in general use.

276,06o

214.738

—219,178

shipments

Fractionally

Freight Loadings

the

only

in which
were made.

period,

index

price

sum

Poimd of 3i raw foodstuffs

per

1962

1963

food

resents the

May 5

Apr. 27

Mi963

15

Continued from page

(model)

.

(2016)

Western

last

earnings

year

of

tags.

tools
Last

with
year

industry figures showed a sharp
upturn and it continued through

Volume

this

year's: first

-

Number- 6264

197

makes for. this boom-bust industry^

first

its

showing

generally "prosperous
some
half a dozen

in

years.

oh

A

'

Ex-Cell-O

plete

tool

for less than

through interim

builders

tools

machine

account

annual

usual

profits when machine tools
doldrums

is

its

in

the

dairy equip-

year.

available

yields

on.

so

4%

than

essential

in

before

time

until

reports

necessarily

not

with

tide

at

wjth

enjoy excellent liaiwith

co-operation

the

the

Commission

enforcement

regulations

the

H

letter

in

as

of

spirit of

.,

Hi«nnccinnc

wpvp

officials

nnn

of

the

any

complex in the Bay-King-Wellington St. block where the TSE
building is presently located,

,

TSKs
ibEs

Toronto S. E.

stands

ber

1962

44

and

member

of

dent

Stock

Toronto

the

it is the

rlarnifVi

policy and determination

the

of

Exchange

affairs

in

with

accordance

TniYlQ

Qol^yy-.

Enyio

before the general market within investment circles

Graham

Roe

Fund

announces

they

deal

well

lated

Mr.

should

that

fail in this policy, then
control may

Brothers

by

an£e sheet.
Theirs

exceptional

with

tensions

tional and

wonder stocks of the 1920's, talk of
!he Nev^ Era' miniscule earnings

market

at

T

moderate and

were

was

there any indica-

tion oi panic or hysteria
the

investment

invading

he

community,

said.
Mr.

Graham

severe

ing

the

early

latter

that

of

part

prices

share
1929.

of

recession

fined to Canada

or

and

May

lowest

crash

the

the
dur-

their

to

the

since

the

when

June

declined

to

market

referred

in

break

point
Noting

not

was

con-

North America

Fvph

has

been

by
J.

cpninr

pvv

when

ago,

for

New

Age

Z LffA
lowed

b

Tb°j

th

but

idea

of

this

lamenting that they were
too old to ride the crest of such

were

jro/qc.

c.iocman

nrLnLr«Vm,

Md

prospects.

You may

Ch°°se the big risk for the big

market

is

leadership.

stewards,
a

General

a

Motors,

a

,

.

as

G.

M.

standing

A

graduate,

magna
1

a

u

cum

d e,

of

*

a

.

..I
the familial
,,

an

.

issue

fundmen
is

prospects

make

that

their

to

through

that

Tlie record_anci

out-

know

.

totaled

th

it

n

f

is

was

world-wide in
the

Graham

effect, he

decline

pointed

described

as

out

that

1962

share

amounted

volume

the

to

on

=!-•

T.

Rowe

Fund

—

of the shares

down

know

about

the

new

situation

greater-than
the boom
years

any

from

other

but

1961,
year

since

mining and oil financing

of 1955 and '56.

A

$14.85

greater

tions

of

awareness

their

shareholders

if

by

corpora-

responsibility

to

public interest in




Growth

share,

per

Stock

net

$85,348,763,

$78,081,725 and $16.50

a

or

with

compared

share

on

Mar. 31, 1962.
*

*

*

The George Putnam Fund of Bos¬
ton

that

reports

assets

at

31

net
or

share

per

Mar.

$299,791,000,

totaled

335,000

against

$296,-

good one

a

$16.26

and

per

share

a

earlier.

year

Correction
In

the

Financial

Chronicle

of

May 9 in reporting the formation
of

Maxwell, Franklin & Co., Inc.,

.

S lnere t0r aU TO'See'

know ahout the
ii.

_

oi

niitomntitTo

inriiit-frir

a

'

-

1

^

»

^

S^9 1

giant, which got that

But they also
surmounting

stacle

every

make

of that

are aware

unerring

University,

__

,

'

way by being a great competitor.

to

.

j

„

present menace of Federal action

company's

,,

aqsptq

<

ot the automotive industry. And *
they also kn()w about the ever- y
a

.

_

Ene.r^y. not
u"
total

faculty
kind of

ob-

for

Qr

vaiue

its

money

a

$15 J4

earlier

year

for

*

*

|hare

share

g

was

$16.84.

John

the

Fidelity

nj

Trend
Mar

Fund
total

21

Maxwell, Sr. John C. Maxwell, Jr.

C.

*

photograph of John

announces
net

asspts

well,

Sr.

were

for

per

the Partner in charge of the Insti- investment field who take a dim
tutional Department in 1941. From view of the whole stock market
1958 to
he was rnanaging if, after a period of a few months,
Partner ancC from 1960-63, was q M. has not set a new high.

was

Correctly

C. Max¬

inadvertently used

Edison, Ludlow Corp., New England Electric System, Niagara
Mohawk Power Co., Southern Co.,
Southern Railway and Swank, Inc.

$58 5 milli0n equal to $12.64
share. A year earlier assets

am0Unted to $55 million, or $14.21
a

that of

John

shown

are

C. Maxwell, Jr.

captioned

photographs

above.

share.

*

•

*

General Investors Trust discloses
that during the first three months
of this year it purchased

Boston

°ne of three managing, partners.
And, on the other hand, they will Over the same span it sold AmeriUnder Mr. Goldsmith's direc- wait for a similar period to see can Agricultural Chemical, Halli-

**

tion, the bond department of Ira whether G. M. has set

****

Affiliated

portant institutions of the country.
^
17

tt

-it

q.

Fund

-i

llarOlfl ulHHICy
jjarold

bariidng
ment
^4

in

affer

was

Mr. Graham said there must be,
a

Price

sports that$29 169
at Mar.
wprV
stock. And they
J™ a
were $2y,lb9,
cyclical nature 952> °,r$20- 6 Per share, against
$28,739,916 and $23.21 a share a

.

the

exceeding $2-billion

slightly

year

a

*

than 285 mil-,

more

TSE

804,399,000

share,

a

*

reports that at Mar. 31

Class of 1926, stockholders. Once more, G. M.,
Mr. Goldsmith started his business making news of the most concar6er in September, 1926, as a structive sort on the earnings and
^inee at Salomon Brothers & dividend fronts, has come to the
Hutzler and later parted his own fore.. That kind of market leaderf)rm in Newark, N. J., where he ship is easily understood by the
lived at that time. He joined Ira portfolio people.
Haupt & Co. in 1932 and became
indeed, there are people in the

highest since 1958, with the value
■

$33.43

or

earlier.

ap-

.

Mr.

31 net assets

$34,355,842, equal to $30.53

share, against assets of $33,-

a new low. burton and Socony Mobil Oil.
Haupt & Co. started a bank serv- If it hasn't, they will begin
*
*
*
parently being "the reaction to tee department which has handled thinking whether the next mar- Imperial Financial Services, Inc.
and a correction of prices after the investments of as many as 600
five years of almost uninterrupted banks an(t a municipal watching
upward movement".
service used by many of the im-

and

*

the

do not have to sell pie in the sky.

such

$

.

However, the shrewd point that
lbese

of $38.4$

Iion common shares-more than mi
F11r,rk RpnrvH"
any company extant.
They X lit; 1 UI1U.O Xvt/jJUJL L

Princeton
B. M. Goldsmith

,

share. This

per

Stein Roe & Farnham Stock Fund

$14.58

P

both possible worlds. This is the
kind of reasoning that the man
and
the
woman
of
the
family
ancJ the woman ot the family
understand. Fundmen, fortunately,

all of

They

e 01

tt

„

New York Cen-

against

are

.

,

T

31

Mar. 31, 1962.

I™'"31 £un<Js they get the best of

..

know

ey

o

Standard

or

ring of authenticity.

arguments

nbnno

For
bell-

the

at

P«ze by turning to the New Age

^

Mar.

with assets of $74,160,-

assets amounted to

Ac

Balanced

on

956 and value per share

895,990,

their

not

was

that

$36.36

or

compares

per

^
stocks,

217,167,

some of these investment stewards

nlaco

Farnham

total net assets amounted to
$81,-

was engulfing the stock market,

to be fol

soon

&

at

.t

the reports that at Mar.

equities

S° f°r many °f these men the stocks-

.

against

partner

interna¬

Despite these events,

swings

time

no

with

years

ir! rela^on to Price, absence of a Wave. There was much talk
dividends and kindred nonsense, then about the Vogue vs. Value

-P

fraught

domestic, political and

fiscal crises.

of

Benjamin

being

one,"

and

the

of

memories

disposal of G. M.

report, the TSE President

referred to the past year as

City

announced

change's By-laws and Regulations.

"an

^

are

growing out of the du Pont forced
sIuwl"S uuu
tue au

it

he

code of action set out in, the Ex¬

In his

the few

bal- demand

a

Stnrir

exacting

and

strict

a

with

the New York

noted that today members are gov¬
erned

60

st, New

members

legislative

policy,

TSE

Hutzler,

York

principle—and rightly so".
to

&

Wan

we

replace the self-regu¬

Referring

Primarily

basics and they can read

T

"we

that

out

as

that

earlier.

year

Stein

m,

Salomon

In¬

&

reports

*

the

the

Exchange,

pointed
full

realize

The

a

*

was

by unanimous agreement, has the

XjlOlIloIo

Bertram M. Goldsmith, who reefficient quasi-public institution,
tired recently as a managing partIn
his
annual
report to
the ner °f Ira Haupt & Co., has joined
of

is that G. M. is regarded

even ever,

tral may be acceptable. But G. M.,

highest principles of ethics as an

members

were Theory adherents. The point, how-

Fund

battered. Many of these greatest bellwether.
tough-minded men, of course carLittle wonder then that, aside
ried the scars of the campaigns from the highly specialized type
°t *929 and 1937. It is not easy 0f fund, managers of open-ends,
to arouse their enthusiasm for the closed ends, college endowment
unseasoned, although they know trusts, pension funds and just
"?ul1 wel1 tlie Prime opportunities about every trust find a piace
in many fledglin£ companies. But in the portfolio for G. M. A

years

of Jersey. And

VjOlUblllllll J Olllb
OdlUIIlUli

its

conduct

to

leaders

United States Steel

Ex-

-

against $28.10

investment

wether

change, Howard D. Graham, says

'

$

few

deeply concerned months and

investment

Canada,—The Presi¬

TORONTO,

si:

Canadian

Mar. 31 net asset value per
share,
stated in U. S. dollars, was
$29.13,

p

corporations

12

to

year-ear¬

quarter.

ternational

at

firms.

equal

The investment community was ket move will be upward. Now,
r°cked badly by the Stock Mar- this cult may be regarded as even
ket Debacle of 1962, but not a more extremist than the Dow

eral Motors or an American Tele-

mem-

com¬

$23,176,

*

m^mbershin curreliUv understood and welcomed They
a"^ G1^mour- such
membership currently E1<?tr<Trf
99, comprising 55

Stanley,
leader
1955,
a

an

until
passed

prolonged

A Common Stock Investment Fund

investment
his

retire-

away

illness.

An
•

investment

for

.

its

seeking
possibilities

company

shareholders

lohg-term growth of
capital
and a reasonable current income.

of

May

A

mutual fund owning stocks

selected
quality and income
possibilities. Sold only through registered
investment dealers. Ask your dealer for
free prospectus or mail this ad to
for

investment

CALVIN BULLOCK, LTD.
Established 1894

He

Prospectus

77 years of age. For 20 years

before his

upon

request

ONEWALL

retirement, Mr. Stanley

banking firm of

Morgan

Stanley

.STREET^NEW^YORK J
CP

headed the New York investment

& Co., which was formed in 1935.

-

were

share,

a

share, in the

per

Loomis-Sayles

^

m

with

cents

earnings

30 cents

or

That Old Bellwether

se-

accordance

the

and

tinutef witr

of the "Chronicle»
They are presented as those of the
author only,

on

to

the law."

those

Reports

action

such

Securities

t0

Curity

pared
i

.'
.H
? ™
officials of the jean ^ayg came j0ng before the
this article Toronto-Dominion Bank regard- spring of i962. The
money-making
time com- ing their proposed new building 0q
automotive
issues
had

.

[The views expressed

take

"regards this relationship

vitai

year.
market the

■

do

an(j

year

it is at hand,

ahead, not when

to

an(j

son

when the good news

attraction is

right

Ontario

next

stock

the

for

And

economic

oL

The TSE President said the TSE

the

last

feature

continued

comforting

into

flower

profit

is

new

in

upturn

fortunes of tool builders

won't

same

should not be unduly hampered.'

Analysts make

income.

demonstrated

the

all

to

growth and development, and that

point that because of this lag,

the

guide

a

mergers or amalgamations are an

actually result in deliveries

cash

and

be

code of

a

established

be

Ex-

in

the

long

would

that

were

should

4%

.

relatively

during

market

time, it believed that take-overs,

The plus for this industry is the

orders

$57,452,

POTTER

bids

take-over

parties to such bids. At the

Sundstrand, 5% in National Acme,
and

in

high

;—

C.

lier

generally

better

Cell-O,

which

conservative

from
the

are

JOSEPH

BY

un-

He said the TSE's views

take-overs

on

interest

lack of

the

quarterly and

or

Toronto

procedure

section

the

investors

activity

the

in

are

ment division.

Incicating

the fiscal year, net

op-

reports,

on

Important to its ability to hold up
the

their

On

Mr. Graham referred to the

fourth of its sales,

a

information

17

reports that for the .three-mouths
ended Mar. 31, third quarter of

erations and management policies

r

is usually prominent

machine

of

lists

although

(2017)

equity investment is to be stiniulated. He stated-this'responsibility
includes providing full and corn-

which

quarter,

■;

The Commercial and Financial Chronicle.

.

.

.

Name.

Lokd, Abbett & Co.
New York

Address.
—

Atlanta

—

Chicago

—

Los Angeles

—

San Fraiicisco

18

The Commercial and Financial Chronicle

(2018)

The

cident

STOCKS

—

The

7.2

million

outstanding shares of National Life and

Insurance Co.

traded

are

in

the

Ac¬

all is not

over-the-coupter market.

current

the

million at year

As We See It

end 1962.

organized in 1898 as

a

fraternal

reserve

a

the

in 1920 an ordinary life department was established and in
year industrial life insurance was added. At the

following

present time, all standard forms of ordinary and industrial life,
individual annuities and industrial accident and health are written
oh

non-participating basis.

a

'

Operations are carried out through

a

people.
titled

outlets in 21 states. The bulk of the
South and Southwest with ap¬
proximately one-third of 1962's premium income of $178.8 mil¬

that

in

force

ordinary—55%,

of

$6.6

billion. This

industrial—44%,

and

territories.
divided

was

group—1%.

followsi:

as

The

•"

both

for

ordinary

and

industrial

life

door collections

the

insurance.

to

sell

as

has

ance

it

Weekly

door-to-

trends, but remains

for

the

in

company

line

with

of

National

to

over

consistent

record

annual

the past decade. While

increases

in

health business, principally

policies

often

are

"weekly debt" life policies.'
National Life has shown

sold

in
:

t

conjunction

in¬

—Life Insurance in Force

Premium

Capital

Total

Written

Funds

$2,841.6

$5,276.7

$139.3

$115.3

2.665.5

2,878.1

5,616.4

149.4

124.4

2.928.6

2,852.9

5,855.1

157.5

141.9

3,179.3

Assets

2,863.5

6,117.1

162.9

161.1

6,627.9

178.8

171.9

Ordinary

Industrial

$753.0

$2,365.6

1959.

819.1

I960-

884.9

! ,1961.

959.6

11962.

1,025.6

(Millions )-

1958_

.

3.661.7

2,886.4

Per
Reported

Earnings

T958_

■"Adjusted
Earnings

$2.12

Share

Data
Book

■"Liquidating

Price

Paid

Value

Value

$.25 t

$16.01

$27.00

$52

-

32

1959.

2.00

2.84

.25

17.28

29.58

53-44

1960.

2.88

3.51

.25

19.71

33.74

52-41

1961.

3.07

3.64

.25

22.38.

38.12

100

.1962.

2.15

3.49

.30

23.88

40.34

*

Adjusted

for

equity

in

life

insurance

in

much

I
j

force.

Survey of

Telegraphic Address
MINERVA LONDON,

t

Ten Year Histories &

Telex Nos. 22368-9
'

I
■

I
I:

'

-

Bankers
•

to

KENYA

the Government in
•

UGANDA ; ZANZIBAR

"

.

•

PAKISTAN

ADEN
V

J

Branches in

*

INDIA

•

•

Commentary

.

Report Available

ADEN
■

'

'

-

CEYLON

SOMALIA

•

•

BURMA

EASJ AFRICA

AND THE RHODESIAS




on

Request

enemies

rivals

Members New York Stock
Exchange
Members American Stock
Exchange

more

to

re-

largely

YORK

5, N. Y.

Telephone: BArclay 7-3500
Bell Teletype 212
571-1170

Specialists in Bank Stocks

it.

part

of

the

world

of

not-

Marx

of

the

of

rest

that

wish

may

scream

about

as we

of
or

the

freedom

have lon<*
mere

communization

Russian
means

Lenin

known

never

democracy

fact

under

guidance

always

foreign domination

far

more

complete than was ever
they known under colonialism, does

all

imperialism, and

have

not

the

'

consequences

a

fail to pro-

or

they think

proper

this

on

perialism
more

earth has

been

vigorous,

im-

would take

before such Rus-

historically sian colonies

to the

come

con-

the

as

more

Soviet Russia,

is

troubled

a

era
and time,
taking place or The same may be said of des- very considerable
time, will
place in Russia is of potism. The -ways of the be required before
historical

to

concern

formidable

is able

to

a

mili-

make

distances

at

Kremlin

must

natural to

more

appear

the

far trends will be clear,

Russian

than to citizens of
any

of the

western countries with traditions

of

unrealistic

to

~

^

•
'
ec er & Co- Inc-> Chlcago,
changed its name. These as Manager °f a» .™derwnti«ig
all matters of the very

probably would definitely not

are

admit it at this time and
may
even not itself be
fully aware

first rate importance to this

it, but it

thrusts

coming, more and
rather

sian

thrusts.

to

seems

outward

than

That

is

cooling

that

us

be-

are

more

to

of

say

the

Jl™''

"g

and the other countries in the
western

world,

and

$g

matters

which the powers that be

Rus- should

communist

the

be

considering

greatest

with fac

The

care.

fashion which

can

be mis-

the

in

more

in

Russian

future

reality the

same

old

imperialism/* T h i

change could well be
ated with the
men

and

more

into

s.

acceler-

its

with

_

.

or

should

be

V

0 common

'

.

^

neglected.

^

^

g

shareholder.

hag

been

no

quoted market for ^
procee<Js to

company wm fee

used) .Q part. to retire
short_term
toward
aml

bank

the

cost

equipping

Qf

$250 000

a

loan;

to

apply

construction

plant

(ap_

proximateiy $50;ooo); and to

pro-

a

new

over-

vide

additional

working

capital.

.

Do the Chinese. Understand
U d
It may be that the Chinese
rulers

begin

the trend of

to

understand

world

Hal° LiShtlng' is

communism,

successor to a

partnership formed
ecutive offices and

piant

are

things in Russia Avenue,

entry of young- and that, rather than any
places of power worry about a monolithic

in the Kremlin.

by

fay
There

that_ its probability and

looked

^

mere

a

promise

fP" lc y

^

is and probably
relatively slow procand not altogether clear-

showing its ugly head in gest

a

of Hal° Llghtmgl Inc' at
£ ^ ^
^

^

that this

early will be

taken for communist
aggresmenesa but which is and will

ij •

ljlgiTLlIlg

utOCK UilGrGCl

think

has

rts

y •

XlSllO

democracy. It prob-

is

world. The Kremlin

and
and

at

in

42oi

Chicago.

west

Halo

its'subsidiaries,
sen

recessed

1956.

Ex-

manufacturing
Grand

Lighting

manufacture

incandescent

may be lighting fixtures for
residential,
really worrying them, commercial and institutional
The Chinese people, of course,
buildings.
Its products are sold
The Communist
Manifesto, have not always been wholly throughout the
U.\S., Canada and
as
amended, serves as an ex- free of imperialism them- Puerto Rico.
,

■>.

.

BROADWAY, NEW

to

practiced them, the

or even

The folloWers of Marx and

greater from home, and ably

western

er

Laird, Bissell & Meeds
120

of

formidable

more

as

or

vis in much closer geographical that the leopard will
change
contact with
key areas of the his spots merely because it

be

10 N. Y. CITY
BANK STOCKS

'.V-'"

•

the

sense,

non-

solidarity of the world.

effective

much

a

Brokers, Dealers ™"

attached

withstanding protestations

Marxist-Leninist ardor, the ess
age old Russian imperialism, ly in view for some
years to
pure and simple is more and come does not m the least
sug-

For Banks,

U BISHOPSGATE, LONDON, E.CJ
i"

ex-

doctrine

evidently

more

some

and Institutions

'

is

power,

more

Head Office

been

48

National and Grindlays

Bank Limited

provide the communist economic

the western world. Russia is

107-73

-

are

other of the Marxist-Leninist

professed follower they become

immediate

more

Range

$2.78 \

a

has taken
.

of

Dvidends

seem

known

itself
Total

Admitted

to

Marxian

as

tary
Statistics

observations

meaning that is to be

But what is

of

Selected

these

ancj the

unrelent- elusion that the last state
of
particularly in the matter of
jng ancj m0re ruthless than in affairs was worse than the
coming to the material aid of ^hat
part of the world now first, is
anybody's guess. This
communist comrades.

income, life insurance in force, capital accounts and earnings over
the past decade. The past year was one of
sharper growth as life
insurance in force increased $510.8
million, easily the largest gain
in the company's history. Over 94% of the increase
was accounted
for by ordinary life insurance.
Earnings, penalized by the costs

paid annual cash dividends since 1903. The
present rate has been $.075 quarterly since a 2-1 stock
split and

If

Communist dialectic '

helpful in other lands.

are

Lave

Union

much

ceed

The company has

less

who dif- where

.

inherent in writing new life insurance
policies and the necessity
higher reserves required by the rapid growth, declined
slightly
on an adjusted basis.

for

so-called

still

fer with them

with

consistent rate of growth in premium

a

en-

in

bring all the charges they can that similar events would
think of
against what they have in countries with tradipretation of Marxian ideas—- caR
capitalistic imperialism, tions of freedom from
and about as
foreign
ready as Stalin but the fact remains that nodomination. How long it
was to excoriate all

profit margins

These

mask

giving it up.
problems and na-

prisoner of the Stalinist inter-

dustrial coverages representing 16% of premium of total
income,
has been exhibiting steady growth with excellent
1958.

the

main

strong growth pattern.

since

is

would

help that had

Chinese

of the characteristics of industrial life, it shows less tendency
to fluctuate with cycles in general business
activity and has a

company's accident and

China

this business has

many

The

feel

communist movement. In
any,
event
the tendency
of the

a

Life

insurance in force

cellent

of

are

firm

it

international

industry

highly stable and profitable portion of the
company's operations. Expansion of the ordinary life business has
enabled

There

experi- acts

do. not

any

pected of

of premiums. This is rather expensive insurance

increased

We
to

Soviet

the

requires intensive selling efforts. This type of insur¬

not

intention

Since so
many of the backdoubtless contrary, the fact is that the
ward countries of
the world
charged to the failure of farther they get from some of

be

The latter type, also known as "weekly debt" insurance is sold in

relatively small face amounts by agents making

now

Union

progress can in part

company

concentrates its selling efforts on. the small wage earning type of

policyholder

1

page

definitely dogmas in actual practice
goocj followers
a
more
backward country
hardly holds much comfort Lenin.
than Russia, and its lack of for the
western world. On the

As of Dec. 31, 1962, National Life and Accident had total life

insurance

from

that

California, and Ohio. In recent years, the
through incerasing the saturation of its op¬
new

practical

appearances

lion derived from Texas,

erating area rather than expanding into

Soviet

They are
opinion valid, then the tendency of
doubtless having their influ-•
about what is going on in that the Tulers of
Russia to abanence
on
national policies in
vast land, but from outward don first
one
and then the

.

branch office organiza¬

company's operations are in the

grown

to

hundreds of millions of

even

tion through nearly 500 sales

company has

the

aggressive tional
requirements about the
backward
World, particularly in Asia,
ence in
trying to manage the countries, and peaceful cothat %ire far more
economic activity of millions, existence
pressing
preachments doubt- than the
respect

only industrial accident and health insurance was written. How¬
ever,

of

a
godsend to China,
and, of course, Russia has no

Continued

rather different at least with

stock company in 1900 and adopted the legal
method of operations five years later. In its early years

society, became

Eastern Asia

room.

part

would be

this country and ranks among the

S. life companies with admitted assets of $1,025

The company was originally

\

urgent

elbow
a

such

as

population

their food supply, and
need for more

upon

NATIONAL LIFE AND ACCIDENT INSURANCE COMPANY—

top 20 of all U.

imperialism

but the pressure of

National Life and Accident Insurance Co. ranks as the fifth largest
stock life insurance company in

Thursday, May 16, 1963

.

selves, but what probably is
troubling them now most of

price is $95 bid, midway between its 1963 range of
$99-$91. At the present price the, stock is selling at 27.2 times last
years adjusted earnings and at a premium of 135% over
year end
liquidating value.

Stocks

Insurance

.

20% stock dividend declared in February, 1962. Sizable stock divi¬
dends were also paid in 1954 and 1958.

BANK AND INSURANCE
This Week

.

An Excellent Mask

.

what is

_

SI^^VW*^

Volume

197

Number 6264

The

1Wtff *J Wi *'?W-^1t!P'J ,»»mir» u

.^»y^(ftj nufimcw

t^W, •

^W\i* ws^'J, ^1,^,1^ /V^^v >W? « Y *v«V?£ft«W, K\

,

J?*# ^«WWf

Commercial and Financial Chronicle

(2019)

LETTER TO THE EDITOR:

PUBLIC UTILITY

eral

the

Reserve

SECURITIES

OWEN

ELY

Gas

&

seventy

water

to

parts
9%

and

gas

the

in

of

central

water.

and

Reve¬

91%

are

Population of

about

460,000,

and

New

Albany

and

Bloomington,
Lafayette

the

are

largest

cities

served; the southern service
is considered

ville

well

industrial

district.

of

economy

balanced

serve

the

between

activities;

The
is

area

farm

and

communities

trading centers for rural

as

which include

areas,

area

part of the Louis¬

a

metropolitan

general

gas

and

Indiana.

$26 million

is

area

serves

communities,

of about

nues

Water

seven,

southern

Gas & Water

of the

some

richest farm sections in the state.

Industry
auto

major

a

is

parts

ment,

well

and

line;

others

aluminum

castings,

include

There

portant research

the

which

is

54%*. residential

are.

heating,

19%

in

the

of
the

revenues

and

house

commercial,

and

views

The

storage

facilities

supply

substantial

a

terruptible.

Heating

which

if

commercial

The

has

company

ZVz

times

shown

good

revenues

growth, last year's

being

large

as

as

decade

a

amount

completed

of

might

-

has

company

introduced

an

aggregate population of 26,000,

located

in.

the

metropolitan

polis

rapidly

dential real estate

active.
to

Service

several

per Mcf
in

averaged

at

fiscal

Gas

cents

the

and

average

selling price

was

settlements

to

67.99

cents

per

of

sup¬

pliers' rates under FPC orders in

1961-62, the cost of

gas

appears

likely to remain stable for

some

time ahead.

The

9.4%

as

only

satisfactory.

net

in

regulatory

plant

lower
is

return

rate

base

base

slightly.

In¬

on

state
fair

a

be

would
net

on

of

rate

value"

calculated

return

the

this

"fair

a

was

inclusion

and

working capital in
diana

high

and

and

years,

Jan.

on

day

1963

gained

result

of

of

the

15%,

about

plus

lower

than

the

of

flow

dividend

dends

and

the

of

from

90

to

$1.62

in

in

the

to $1.79 in

rose

to

$1.68 in

ing
Sept.

a

30).

two

year

revised

rate

refunds

from

have
recent

in

the

stated,

past

the

equity

at

1952.

but
of

No

com¬

Internal

low

by

divi¬

cash

3%

in
at

by

in

1956

thereafter.

stock

ratio

to

high

cost

level.

the

from

all

aggregating
to

to

the

company

and

sorbed

had

all

not

since

is

not

customers,

gain in

However,

purchased

applicable
The

pur¬

in the

company received

suppliers,

refunds

of

112%.

gas

interest,

of

costs,
its

gas

$1,444,000
1956-61.

years

The, stock has been selling
cently

over-counter

Based

stock

around

in

A

purchasing

dishonest
in

creases

The

as

nomic
it

Bryan's

as

stable

He

The

"profiteer"
the

of this

was

Tucker,

economist,
the

of

the

ly

Gen¬

Hayek,

n

later

he

profit
with

the

in

the

"New

Sincere
to

the

sidered

in the first quarter

of

running it

into

the

under

Deal"

held

so

as

law

in

for

a

1927,

bill to

dividend

I.

duPont

&

Co.

course,

5.5%.

no

There

is,

dividend

cent

years

equity

that

assurance

to stabilize

With F. J. Winckler

ob¬

they

DETROIT, Mich.—S. J: Testa has

con¬

become

Winkler

associated

with

members of the Detroit
were

hearings
amend the

west

Fed¬

tered

will

has

helped

financing

and

to

Stock

Exchanges,

Representtaive.

it

avoid

appears

unlikely that such financing will
occur

The

over

stock

less than

$1.78
March

currently

16 times the

the

12

selling at

earnings of

months

which

—

since

it

had

on

ab¬

supplier increases and

increased

company

under

consumer

obtains

long-term




sent the official

the next several years.
is

for

★ The 1963 edition of

and

ANNUAL PUBLIC UTILITY ISSUE will pre¬

opinions and forecasts of the nation's public utility leaders

non-industry authorities

nation's

ended

earnings

our

on

the outlook for this vital segment of the

economy.

.

"

"

•

were

doubtless favored by cold weather.

★

Get your

the

perspective

on

N. Y. Bond Club

★

this year's prospects arid the future trends of

rates

its

gas

agree¬

public utility industry.

Do

Bank

Offering

before
The

Bond

which
as

Club

operates

Stock

only

feature of the

a

Exchange,

once

Bond

a

not

in

miss

this

annual

of

2,500

of

Please

your

reserve

Firm, Corporation

your

space

.''

'■'

'

1

'

V/

4

it

Club

i:.v'/-.C

of

Regular advertising rates will prevail
for space

"waterproof

in this important issue.

stock".

Trading will take place on Fri¬
June 7, in a special Stock

day,

Exchange tent at
low

the

Country Club where the

Tucker, Anthony & R.

Stock

25 PARK

out¬

Day, is Chairman of the Bond

Club

COMMERCIAL &

FINANCIAL CHRONICLE

Sleepy Hol¬

ing will be held. Ernest W. BorkL.

THE

Exchange Committee.

V

PLACE, NEW YORK 7, N. Y.
RECTOR 2-9570

or

requirements

closing date of June 11th.

Day, is making
offering to members

shares

opportunity to advertise

important issue.

year

New York's Field

its

the

F.

J.

Co., Penobscot Building,

Will Be Published June IS, 1963

of

be

sales in the mid-west.

a

THE CHRONICLE

the

with

will

conflict

ap¬

proximate

municipal

activities

THE PUBLIC UTILITY ISSUE OF

be

in

of Chicago.

28.

an¬

Co.

directed toward underwriting and

system."

in

&

that

associ¬

member and past treas¬

a

Hawkins'

Mr.

requirements

which

Nuveen

The Exempters

Francis

be¬
The

conservatives

putting

"our

on

business

of

bond group

impossible of achievement

When,

not the signal of an inflation

a

considered

was

jected

century than in the second.

advent

urer

predis¬

conservatism.

prices.

have failed to notice
inflation

bankers'

of running

goal

of

rising price level until
more

their

of

was

in

He is

book

stable dollar,

a

with John

to

was

Chicago.

of

Professor

was

considered

posed against

and

cost

vogue

his

(see

money

department.
Prior

Thomas R. Hawkins

ated

manager

west buying

JH

1

States

advocate

as

15

recent¬

of the mid-

jgg

'^2

HI

by

for

past

years,

was

and

United

Money)

Ingen

Co., Inc. in

the

stable

ensuing de¬

eco¬

who

"high

in

not

was

United States

The

Rufus

asso¬

Chicago
of

of

stability

the

Van

&

Irving Fisher of Yale University.

living." Because the word "infla¬

a

for

outstanding

Stable

bond¬

changed

now

The

cause

for

of

time

Friedrich

darling

J.

to

Chamber of Commerce.

those who

their enemy.

the

was

a

appeal

"bloated

the

climate

blamed

by

boom"

a

very

Motors

Professor

level

price

strong with

considered
holder"

the

year

upward.

been

This

blamed

eral

de¬

in

La

He

ciated with B.

Glass "babv."

a

"roaring

pression

as

has been

purchasing power."

same

turned

just

which

dollar

a

Cur¬

reputed

was

office,

South

i Salle St.

Chairman. The Federal

was

even

increases

is

power

Banking and

System

prices.

absolutely

which

dollar

re¬

cashed, the total yield would

land, Jr.,
The

1920s

purchasing

be

208

version

was

The

stable when measured by average

prices.

Senate

cago

was

the $1 cash dividend the

on

should

retaining, these
passing them

1949.

supplies

in

the

This

Committee, of which Carter

have been

money

pal bond department in the Chi¬

as

maintaining
a

holding

during 1962 the
with

honest

vary

from

Reserve

his

Aug. 12, 1896, said:

would

level"

dividends

increased 263%

of

in

it

include

the investment tax credit.

nual

ratio

47%

improved

company's

refunds

prices,

not

power

to

price

Glass

more

CHICAGO, .ill.Tr1Thomas R. Haw¬
kins has joined Francis I. duPont
& Co. as manager of the munici¬

carry

re¬

each, year

income

net

of

falling

absolutely

Currency
to

System.

by. the House

speech accepting the Presidential
"An

e

rency

Bryan,

on

stable

Francis I. duPont

Senator

provision
a

Reserve

inflation.

of

years

1913,

de¬

well

as

yield is 3.6%, and if the 2%

during

supplemented

decade,

than

in

his

deleted

defense against de¬

a

Hawkins-Joins

before

with

definitely, but its payment in

helpful

gas

originally

KORTEZ

St., S. £.,

Washington, D.« C.

of the purposes of the Fed¬

one

sincerely,

Earnings

liberalized

normalized,

Yours

3510 A

Owen, Chairman of t;

"promoting

to

Jennings

was

currently.

chased

30

many

The

Book value has increased from $7
in 1952 to nearly $13

The

than

"William

later,

for

through

Bryan's

background

there

was

Con¬

a

follow¬

shown

as

conservatively
savings

preciation

Against

sense

ends

is

like

here,

Banking
and
Committee,
failed

as

was

rather

year,

figures

slightly

table of the 1962 report.
are

flation,

tion"

now

Mr.
would

I

stability

dropped

years

op¬

I.

Senate

Wil¬

by

There

already

War

Robert J.

attention.

as

back

dropped

These

been

1952

following

fiscal

(the

in

1960 and

the

decade

Earnings

.cents

1956,

$1.42

the

half.

debt.

issued

was

dividends

also

as

plant.

additional

was

equity

half
second

most

Congress.

in¬

issuance -of

was

increased

growth—larger

continue

yet

in

first

in the

a

stock

payout,

2%

The

the

of

earn¬

shown

earnings,

were

stock

in

rate

of

has

retained

pared with 48% in
cash

dividends

by depre¬

stock

period,

day

increase of

in

company's record

and

than

trend,

peak

decade

an

1962 '- remained,

in

ings

of

which

proposed

had

financed

and

sale

this

of
ten

weather.

135%

was

common

the

partly

past

accomplished with

ciation

in

the

-cold

growth

only

sendout

219%

output

struction

communi¬

continuing

23,

The

Price

value

cost.

speech
Bryan.

aspect

While would
as

1956, in 1962 it

7.6%,

would

was

po¬

was

However,

4

of the famous

us

Jennings

nomination

company's

that

eral

load factor of 76%

a

1962,

Due

pur¬

33.64

Mcf.

.

maximum

increased

gas

be extended

liam

your

costs

charges.

Finan-

World

Gold"

of

direct

chase

tax

1

■

resi¬

development is

may

.

Indiana¬

where

additional

ties.
The

of

areas

Louisville

and

growing

"Cross

to

gas

service into ten communities with

issue, remainds

views

demand

and

Haller Belt, in your
AApril

Mr.

permit substantial savings in an¬

to

earlier. In the past two years the

Commercial

cial Chronicle:

nual

moderate

customers is about 68 %.

Editor,

another

saturation

residential: and

of

to how various groups have reversed their

as

which

peak day demand and is working
on four
additional storage proj¬

ects,

for

was

SIDNEY

com¬

under¬

27% industrial, including 11% inof

floor

regarding the desirability of price stability commencing with
William Jennings Bryan is provided
by Mr. Koretz.

Transmis¬

three

ground

interesting insight

Eastern

maintains

on

im¬

Gas

sion and Texas Eastern.

seems

aid

to

,

growth. Gas

Texas

sition

metal

An

Panhandle

return

development

expected

company's

Line,

pany

ce¬

also

activities

future

from

glass,

and

are

Pipe

Company

metal

products,

products

specialities.

being

products,

clay

gypsum

area,

diversified,

accessories

ments

general,"

opinion

By Price Stability Advocates

Indiana

provide

posed to it and it failed to reach
the

to

in

conservative

BY

"to

stability of the price level for

commodities

Indiana

Act

19

v

and Mid¬
as

Regis¬
•

20

(2020)
Volume

about control of government

cern

Federal Tax Cut.

spending -^- but '-quite" another
make

Will Aid States

specific

suggestions
cuts

And Local Units

can

tions

are

and

about

be

wholesale—thereby

considered

where

made.

claims that the budget can be cut

to

budget

Such

contained in

a

unwelcome

"/The issue of fiscal
is

re¬

cently issued by the United States
Continued from page 10

Chamber

of

billion

seeks

identify

civilian

from

requests for

major

agency

cut—and

was

to

the

cut

plaud

billiion dollars from the

A

another three-quar¬

1964

Fourth,

budgets.

the

.

_

President

is

firm

to

reduce

the

,

through

trasts

efficient

Quarrel

With

recommend

the

w

r

demands

economic

ap¬

h i oh.

or

*

arbitrary

irresponsible

,

the
the

program"'is

is

frequently

program

the President's

only,
Presi¬

being
say

heard

—

,

if. the
on

Octo¬

tax, liability by - fully $10 billion
next-

15

impact; of

million

much

This

to

pro¬

consumer

argument,

of

is balanced by those who

that*-the

program

much* stimulus

to

provides

months—an
more -

months >;.>

aver¬

than : $660
:

.

-

-.

*

and

greater

.

and' too

little

greater

comes

than

to

de¬

consumer

>;'■ /A'./

The

answer

arguments
the

is

President's

substantial
vestment

to

both

quite

of

'

to

«

these

simply

program

stimulus

and

gross

-either

that

offers

both

demand. 'For

a

an

addition
national

will

to

ex¬

both
will

in

far

therefore

a

More¬

easily

tainable—economic -growth.

history shows that
fresh
the
not

unless

it

is

purchasing

The

incentives

ment.

the

In

to

investment

depreciation: reform

last

appeared

ment

.

,

The Commercial and Financial Chronicle

re¬

measures

have

even

most

our

statement

in the April 27 is¬

Business

which

a

Week—a

puts

quite

point I want to

state¬

cogently

make

here.

I

Companies told McGraw-Hill that

ment-curve., j;;-.

they

added

in

1963

capital

order to

$1.2

billion

spending

to

their

plans

in

"Skeptics

c;-tion that
can

,

*

-'

new

make

;

its

to

contribu-

a

economic

careful

on

growth

look

(McGraw-Hill)

findings

ing

the

government tax policies

should take

..

about

at the

survey's

why business is boost-

capital-spending figures.

tax

policy

directly

at

-The hext chaftge
should

further

be

aimed

improving

in

any

language.

The

proposed

for

duction
tax

rates

take

and

sharp

re¬

1962

43%

to

ernment

due
tax

Business

to

1963,

some

changes in gov¬
policies."
A /,

Week

then

continues:

"This is not to say that
exactly
the

same

sued

in

approach should be pur¬

the next round of

tinuing effort
economy

to

Realistic

excellent

for

*

report

This

overall

benefits

for

to

back

get
on

the
a

a

con¬

U.

S,

higher

growth, employment, and invest¬

dent's
do.

tax.

measures

cut

program, proposes

We ^estimate

that

billion.

The

cut

taxes

two

last

adopted

business-taxes

rate

year

will

by-

some

$2.5

proposed

would

to

the

reduction

of

$5

billion

will

increase

new

investment by almost 30

which

is

a

the

profitability of

significant

incentive

growth

The President's

fore,
anced

offers

program, there¬

the

stimulus

large
to

ment and-demand
create

the

strong

upward surge

our

and "bal¬

both

invest¬

that alone
and

can

sustained

for

the

must

recently

Reduction

This

de¬

in

become

paid.

permanent

Those

portunity

the

the

cost

public

of

by

As

for

half

three quarters

—the

economic

than

not

jobs,

/

and

also

mean,

increase.

be

beneficiary.

As

the only -fis¬

State

will

also

of

and

local

reflect

upswing

and"

the?

greater-

resources.

annual

the

of fiscal

savings

period

in

for

a

nine-

eight

record of realistic

penditure
fiscal

control,

of

responsibility,

administrative
of

record

.public

of

and

efficient

without

record

-a

for

concern

both

tegrity and
and

that

local

national

our

:

in¬

want

to

make

ministration
those who

are

the

control

waste.

and

We

for

-the

do

meat

tax

of

people

Unrealistic

needs

or our

and

out

that

and

local

meet

the

for good

with

and

There

but

are

al¬

the

proclaim that

we

lower

the

sense.

should

"

slash

the

budget

tax

always

marvelous

ability

they

demonstrate

reluctance

to.

—

spell

When the time. cofnes to
start

cutting-

"wasteful"
exist.

-

'

it

budget

costs <oh space

and -the

public

fixed

debt.

If

one

interest .obligations

.

Like

have

de¬
on

J

excluded

and

more

than ;67

every

'dollar.

come

outA)f

defense
billion

cut
our

slice from

these

$6.7

out

of

have

A

$10

-

and'

$15

to

ihat /.kind,/ would

to ..$10 billion -out

programs...Even

holding

overall
expenditures, to-their. 1963.
'levels-would,* on,this basis, carve

billion

out .of

space

and

•

de¬

fense.
is

thing to




express

local

become

in¬

tax

the
to

relief

of
our

ahead

move
.

hfere

you

faith

can

pro¬

amount

power.

of

we

President's

needs

all

exam¬

result

offers

That

in

today

the

I

innate

and vitality of our free
enterprise economy. That is why I
want

to

see

it

freed

outmoded

an

is

tax

of

the

drag

system.

And

precisely what the Presi¬
tax

to

Inevitably, those proposals

do.

proposals

are

designed

will be somewhat modified
by the
time the tax bill
emerges from
; the House

mittee.

as

I

Ways and Means

But

the final

I

bill

will

do, that

more

urgent,

pelling,

than

farther

no

that

merit the sup¬
who

task

believe,

before

no

need

to

move

and

Com¬

confident

am

of all of those

port

omy
one

our

and

dent's

to

*

vital space

programs.

.cut /of

'cents

would

meet

of

important
of

it

upon

to

needs

state

the

own

great

that

.budgets evenly -across-tlie-board,
then

would

And

strength

of

tha

cut.

than

have

to

citizens

Government

and

economy

in--;

and

interest

their

the pressures

which

kind

under its

■-

year's

,the-

enable

of

of the kind

the

understand
.

should

rates

one

a

simply

governments

which

merely

gram,

do not

this

limited .to

were

creased

fense,

to

#in

im¬

such

will

critical

many

expect from

actually

A

Federal

ple

made.

'•

hard-

Increases

is

supposedly

billions simply

is

why.

-those

'

•

Nor

*

$400

creasingly unable to finance.

exactly

where these cuts should be

local

the

of

feasible.

governments

a

in-

or

—

out

be

lessen

citizens

V by billions and billions of dollars.
And

all

I

it

needs

should

ways those who

detail

point

ex-

oratory,

reve¬

in

than

more

increase.

lays

good

be

higher

state

million

—

not

otherwise

for

cur¬

alone this would

$209

need

treme slashes in government out¬
make

billion

million in

state

serve

for

$201

revenue

nation.

demands

their

rates—would

$2.9

portant "implications

cuts

"

current

revenues

I

how¬

budget

axe

at

emphasize this;

million in all.

of national security

public

necessary
our

believe,

I

New York state

nues

expenditure

elimination

not

at the expense

either

with

—

Senator

program, state and

revenues

estimated

mean

earnestly concerned

need

that

ever,

absolutely

quarrel—nor f

quarrel

any

state

upon

than
they would otherwise be.
This would amount to 7% of 1962
state and
local
revenues.
For

security

other official of this Ad¬

any

with

it

no

impact

program,

revenues.

rates—and

their

an

well-being.

clear that I have

tax

effect,

tax

tax

rent

at

deep

fiscal

our

fully in

local

suit of the tax

wasteful

reflects

President's

Douglas just today released those
figures. They show that, as a re*

It is

neglect of essential "public needs.
is

>

Chairman,;

figures showing the

the

when

ex¬

frugal conduct -of the

business

^

Increase

ury has supplied the Joint Eco¬
nomic Committee of the
Congress

with

genuine

management.

Revenue

Would

Senator Paul Douglas, the Treas-*

of
a

Cut

At the request of its

-

1963

last

the

State-Local
Tax

five

millionv- dollars; in

This is

It

have

greater op¬

activity increases,

will

utilization

My

years.

$3

a

will

economic

Treasury's- highest identifi- '

able

month

of

better

already

better

It

revenues

services '■

its

,

more

and

the

'and

who-

pay.

treasuries

Federal

improvement.

first

;

a

department, for example, has

reduced

'

is

major goal of the program. Those
with marginal jobs will
see them

tax

through

report

developments

own

can

jobs

ance, the budget will also move
closer to balance. But the
Federal-

"Cost

management

not

mean

unemployed—which

good jobs will have
economy

much

mean

the economy moves closer
to bal¬

new

or

will

than that. It will

more

•

business

by another $2.5 billion. This

overall

nomic

Growing Benefits

corporate

reduce

cal

has

well

as

..

>

-

scribes clearly and concisely vital

.

tax

growing

individuals

Budget will

I

mean

of

as business. Too
many taxpayers
is also necessary. The
pro-- have merely calculated
the extra
posed individual
tax
cuts- will
dollars
that
tax ' reduction
will
create that u additional
consumer
allow them to retain in
1963, 1964
buying power. ,A -A;.-."
and v 1965. But
accelerating eco¬

Government."

It

em¬

impact of the

will

program

Better Management in the Federal

a

full

utilization

is¬

entitled

to

of

capacity."

full

by the Bureau of the Budget

sued

.

levels

and

higher profits for business.
The
entire nation will be the gainer;

4

reading

your

reach

ployment

capital gains rates

21

power

increase from
was

have

individual

advantage of more- corporate rates of return and at
should stimulate still further
the
liberal
depreciation
allowances increasing consumer demand for
incentives to invest. But for new
and tax
incentive programs for what
this
dynamic economy "is 'investment 'to be
truly profit¬
investment. It would thus appear
fully capable of producing."
.■
able, adequate consumer .buying
that, of the $2.8 billion planned
That is exactly what the Presi¬

quote;
\.

offers

of

two

to your attention

of

the

invest¬

hopes. I should like to

that

by

credit

these

sue

-

match

invest¬

encouraging

thus far exceeded

call

long lasting.

President's program

excellent

and

to

of

optimistic

»

1

sus¬

to produce, is,-

in¬

•

•

'

For

supported

very

A.

significant

through tax relief. The

sults

investment

power

added capacity

likely to be

an

steps toward
ment

balanced

more

more

year; we took the first

in¬

consumption and investment
result

*

-

product

alone.

the

inter-action of greater investment

in

over, a substantial tax stimulus to

boom,

Encourages Incentives

;

and

total

investment

' A"

mand.^

demand

panding economy will produce
far

—and

pro¬

of-this1 year, it will reduce

age,

course,

hold

program

,

becomes eiicctive

the

too

tax

stimulus, too late, they

ber

in

and

demand.'

too

gram
1

ment

—

gives too little

overlook ;the fact th^*

con- i

mere,-gen-

for

not

which

.

more

Spending Cuts
I

,

!

amounts of pos¬

;with-

spending ceilings

management.
No

in

Chamber's taction

sharply

eralized

con¬

adminis¬

more

' manner

areas and

out. "The

trative costs of every Federal De¬

partment

suggestions,

not

hand, he is striving

stantly

<the

agree with

sible reduction have been spelled

only controlling expenditures with
a

those

specific

spending requests in the

and

;of

but

the objection that

vides too little stimulus to invest¬

responsibility

critically examined. Some
that

Although I do not

dent has

1963

in

cut.

cut

ters of

of

ways

tax

this

heavily and since then, the Presi¬

total

dent's

which

-upon

and

all

a

117

-

major,

which the'Federal Budget can be"

obligational authority. Every

new

Commerce,

the

ground

there is

the

of

Number 6264

(2021)
And

de¬

avoiding

ciding where cuts should be made.

sugges¬

study

.

responsibility

197

more

our

faster

is

us

com¬
econ¬

ahead.

con¬
♦An

address

Chamber
New

York

o(

by Mr.- Dillon before
Commerce
cf
New

City, May 7,

the

York,

1963.

The Commercial and Financial Chronicle

(2022)

22

other basic

forces

.

.

Thursday, May 16, 1963

.

day would be substantially lower

ured in suck a tattle which could

to

challenge

Bond Market Outlook for

are

than

sues

they are.

Supply of and Demand for

Turning
outlook

would

3

Continued from page

Price Period*

briefly

Let me review

whicl

sequence,

the American bond market

financial

er

rates

over

created

helped

to

man-

months

In

of the bond market most

firm to

21/&% to 5%.

drivin-

inflation,

they were in 1958 and only
forecasters
to

return

projecting

are

gold.

able

and

the

plant
its

Also, the

is

rof

since

1958

heav

the

firm

decade from

The

to

the

has

fiscal

not

States

the

than

because they ex¬

government

of

government

trust

substantial

total

volume

be

re¬

line

the

of

table

the

second

favor

of maturity.

regardless

deteriorate
to

and

institutions

lead

term securities.

short

Thus far my analysis,
leads

to

me

namely

that

such

insurance

as

pension

funds,

savings

and

com¬

savings

and

section

shows

loan

contributions

as¬

of

in

are

added

which

and

this

arrive

at

absorbed

the

is

the

individual

investors.
is

apt

upward pressure
When

is

residual

a

by

residual

there

1959,

subtotal

the total net de¬

miscellaneous

When

excludes

miscellaneous

and

from

we

commercial
these

When

is

to

of

subtotal

a

made

funds

new

private

highly

All

system.

subtracted

of

the

markets by the

only

na¬

large,

heavy

be

to

in

as

interest rate's.

on

a

preciation

a

and

1950's

It

creation

guaranteed that
TABLE

I

of

the

of

SUPPLY &

1957

Demands
Real

it

were

government's

efforts

110

residual

terest

rates.

in

turn

of

DEMAND

FOR

is

it

small,

may

of

even

higher interest rates. Let me dis¬
these two

cuss

demands

and

pressure

on

potentially adverse

factors.

Another

My

1961

1962

1963

Est.

Mortgages

there

Large

is

1962 the U. S. Treasury sold

In

market

the

This

over.

the favorable

of

1962.

17.8

24.2

23.0

5.9

4.1

5.0

5.1

5.1

5.2

Municipal Bonds

4.3

5.2

4.8

4.0

5.0

5.0

2.7

5.8

6.0

7.6

32.3

36.2

21.3

33.7

40.3

40.9

volume of corporate

17.8

17.2

20.2

23.4

25.6

growth

10.2

8.7

7.9

.1

.8

2.3

Met

Sources

of

Non-Bank

governments
years

-

16.6

2.0

13.0

Corporations

.5

Governments
'

Subtotal

■

be

Individuals

Misc.

&

2.7

1.0

2.7

-

0

-

.3

-

.6

29.9

.6

.4

1.9

this
in

1.5

17.8

30.4

35.4

37.8

Investors

4.2

2.4

22.1

Total

3273

13.4

367

3.5

3.3

4.9

2173

2

3377

4073

do

I

not

in

is

expect

and

TABLE

II

-

the

CHANGES

IN

credit,

funds

of

OWNERSHIP

for

OF

(Billions

commercial
these

U.S.

of

types

TREASURY

and

paper

AGENCY

flow

the

of

that

trade

Less

Total

Federal

Less

U.S.

Reserve

Trust

Fund

Purchases
Purchases

Net

Change in Publicly Held Debt

Net

Sources

of

+

1958

did

+7.5

+10.1

the

On

funds

that
for

authorities

our

1960

1961

.5

+6.7

-

+

.7

+

2.1

1.2

-

.8

0

+

6.2

+

.3-

+

.8

+

1.5

-

.7

+1.4

-

.6

+10.5

2.7

+

5.0

the

How

cated

deficit

fi¬

been

this

be financed,

may

$7.6

publicly.

has

how

and

States

about

raised

be

year's
is indi¬

Table II.

on

Non-Commercial

Bank

Debt

Financing
It

surprise

may

1962 the entire
in

publicly

mercial

Treasury

debt

outside of the

com¬

estimated

is

nanced with

in

is

table
recent

be fi¬

only small assistance

commercial

the

the

that
can

banks.

One significant trend

the

in

banking system. Further¬
it

from

that

some

$6 billion increase

held

financed

was

the

shown by
increase

gradual

in the volume of

years

securities

government

purchased

this

low

were

long term rates?

working

1962

In

of

governments

of

of

purchases

and

bonds,
ten

these

over

by

declined

actually

years

term

long

holdings

their

$116 million. Federal Trust Fund

purchases of
the market

in

long term bonds

under $200 mil¬

were

lion. The net effect of these gov¬
ernment

in

a

high

out the

usual obituary

de¬
had

expired

quietly

generally

become remark¬

now

ably close to yields of marketable
bonds.

corporate
the

be
as

a

group

Whatever

may

institutions

these

reason

have recently become

buyers of government securi¬

and

albeit
,

in

moderate

estimate

I

amounts,

their

that

pur¬

range

nudge

Operation

evidently

holdings

enormous

thermore, yields of long govern¬
ments have

ties

comparatively

scale

reduced to modest amounts. Fur¬

clearly to hold

long term government bond yields

liquidators
large

a

governments ' were

net

on

their

result

both sides

operations

of the market was

on

For

;

purchase other securi¬
ties with much higher yields. As
a

nominal

only

net

in order to

Committee

made

institutions.

non-bank

by

the Federal Reserve Open Market

1961.

with¬

some

time

will

chases
Business
very

increase

corporations

further.

with

their

heavy flow of internal funds,

From

May

1961

of

to

and with their

liquidity

comparatively low

ratios,

of

1962

long

govern¬

to

continue

should

buy short governments. If the

Principal High and Low Prices of U.S. Govt. 3'/2's '90

1959

1958

A

1962

1961

1960

*63
—

\-S

"•

•

105

A

of

years

the

exceeds

forecasts

demand

for

a

—

vv

■

:

"

■

:

•

100
/:

ex¬

side

frcm

is

—

the

the

supply

side

increase

in

funds flowing
while

to investing in¬
the

of commercial banks

the capi¬

to

1963

+

1.9

+

1.3

although somewhat reduced from

±-Yl

+

1.5

1962.

+

7.6

—

95

+10.4

6.0

•

contribution

9.0

+

■

volume

1962

Est.

■

expect

I

the

+

The

net

culations

suggests
over

—

again be large

of all

sidual left

Funds:

:

deficit.

another

SECURITIES

-

of

jibe with the popular impression

the

plant and equipment

Treasury

of

1959

.5

to

United

were

huge increase

tal markets should
Outstanding

net

3.70%

credit

Dollars)

1957

in

leaving

healthy

a

internal

optimistic
in

stitutions

Increase

Funds

■

rise

of credit.

&

and

Trust

post-war period these

expenditures;

considerably

most

4o71T

in
consumer

sources

by the Federal Re¬

Banks

billion

of

should

most of the

penditures. The only real increase
(1) Publicly held.
(2)"Excludes bank loans,

be purchased

net

not

bond financ¬

capital

because

the

very

3.1

billion

institutions

very

corporations in the last two

by

billion. However,
$3

1959. How

volume

annual

ended

—

1962.

.5

4.2

22.8

0_

17.9

Financed

5.0

.4

;

-

A_

'

to

.7

1.1

Foreigners

5.2

-

$10 ^

almost

long bonds sold in the three

years

only slightly below the record of

5.1

or

about three times

was

agency

new

is projected,

year

ing will rise in spite of
14.4

Banks

Local

Residual

10.5

large mortgage

Funds

Institutions

Business
&

0

22.1

Commercial

State

(1)

do

Another

15.0

.

and

the

supply and demand

16.8

Government & Agency

Treasury

a

as

that

average

December

Year

1963

15.0

S,

1963

is

prospect

the

change from

7.0

Total

downward

for

10.8

U.

in¬

any

Bonds

Corporate

about

chiefly by refund¬

maturity

a

fi¬

be

rates.

Mortgage

suggest

balance

t

Estate

seeking

interest

estimates
to

seem
1960

of

more,

Expiration of Operation Nudge

in

(2)

1959

to

-

Dollars)

1958

have

outstanding will increase by

this

that

policy

clining.

funds

vestment is large compared to the

tc

CREDIT

the

threatened

direction

the

will

im¬

be

monetary

5.36%

from

For calendar

year.

whole

market's

possibility

the

by

and

in¬

the

to

seems

chiefly
fiscal

firm

period

this

For

ahead,

mediately

stability

by monetary and

favoring

while other bond yields were

balance of payments,

our

interest rates and bond yields to

(Billions

Net

the

improve

1960's

SUMMARY

-

th-

probable that

this

deficit

policies

often indicates that the volume of

long term government bonds

seems

for

Thus, the hug

year.

capital

de¬

new

$12 billion tr

rose from

$26 billion
debt

while corporate

year,

from

during the second half of

been held down

fiscal

institutional

lion

nanced

nanced,

of ten

investors.

br

it seems,

market

bond

a

declined

serve

conclusion:

odd

an

with

institu-

investing

non-bank

ese

declined

unfortunately large Treas¬

turally firm to rising in price has

the

shows

de¬

2.97%, and FHA mort¬

deficit

debt

of

t'ons

An

total

ings $4.4 billion

by

yields

to

yields

ury

in the table which groups

vestment in bonds and mortgages

up

wholr

policy,

as

the bond

on

would

to

sources

maturity structure of the Fed¬

a

United

is¬

new

bo ids

larger deficit for 1963

of

banking

refundings involving the issuance
of

the

the Federal Reserve

first

section

t

eral debt has been lengthened by

$10 billion to $20 hr

this

term

-

variable

interest

higher

only

and

fi¬

bond

smaller

by

•

second

short term and kn-

ex¬

the

in

rose

Banks.

mand,

las

Federal

credit

term

sociations. The second line of the

repeated refundings and advance

cluding

than half

more

recent years. The net

funds and by

which

the

ou'

standing bonds and mortgages

ac¬

3.38%

together all issues of government

mort¬

usually

long

purchases

monetary

large depreciation charges
repayments

estate

municipal

and

nancing in

held up by vigorous application c

automatically creating

Therefore,

of

total

banks,

loss id

structure of short term rates be

fi¬

than

the

of

de¬

net

overwhelming

have

counted for much

pares,

of the Unite

continued

our

Not

rates.

corporrt

new

by th"

unfavorablr

government to adapt policial

favoring

arrorti

equipment

and

own

deb

new

is

the

of

investment securities, but has lec

repayable in annual in

stalments.

nanced

1950's

checked

reduced the demand for America

our

in

the

capital abroad has not 011I7

an ea~

steeply rising commod

Most of the vast

(3)

and

put great pressure

steady annual rise in the net in¬

been

Ever

term

ity prices.

created

has

of both

flow

few

a

It

States

lower today th?r

are

in

improvement

■

balance of payments

wholesa"

fact,

the

instru¬

the

at

real

which

gages

higher short term interest

and

consequences

higher interest rate
In

of

securities

of business.

ate.

commodity prices, the best inde
of

c

yields, however, has been moder¬

great post-war inflation, which m

subsided.

importance

clude

The decline in government bond

(2) At about this same time th

had

with

credit

the

Federal deficits

yields which developed in

the time in

strongest

glance

are

pace

the

reveals

from

from

was

mands

demands

rates

doubt

A

Treasury

dium term Government yields rose

force towards

th?

recent years has beer
of Y
corporate yields towards lower yields in spite o'

from 3.75% to 5.62% and me¬

rose

for

of Federal debt into long

Finally, market psychology could

private

ments.

longer term fundamen¬

trend

period

a

issue

new

changes

I

securities

porate

1959, it is not surprising that thf

to levels which were very h'gl

historically.

these

in

better

departments of the market in 195?
up

credit

which

markets

exception of bank loans and other

tals, and given the very high level

psychology which, in turn,

yields in

flected

of bond

market

bring

investments.

Given

adversr

extremely

an

mar¬

principal

for

utility

to 5.11%.

capital

market;

of the

to

gage

the

to

all

public

thereby municipal

banks

am

sum¬

demands

of

to

top part of the table

rates

term

er

of

a

than

more

ket

yields increased from 3.79%

4.06%, while yields of

make the substantial contribution

year.

balance

commercial

projecting. Again, fiscal policy
yields could refund such a large volume

highe- expansion and which rose spec¬
have
created
r tacularly last year. The table also
scramble for, higher yielding long¬ shows the sluggishness of net cor¬
deposit

rising interest
long period of years

pattern

had

in

have

mar¬

Furthermore,

them.

upon

interrupted by three smal
and briefer rallies. This repeti¬

were

tive

resources,

excess

ample funds to meet the demands

major cyclical price declines

Four

new

the last few years

in the

of this country

history

their

of

ir

in

a

and

the

ment

example, clined from 4.75% to 4.25%, long

for

short-term

1950's were
by a flood of

swamped

supply

forbid

of this

marizes

the

in

bonds and mortgages far

re¬

decline

largest

which

often

(1) From World War II throug"
a
combination of inflat'o"
the

private

new

investing institu¬

many

tions,

1959

in

addition,

make

to

the

of

(Table I)

and remain high. As a con¬

years

of business recovery.

private credit expansion

during the
Tne

In

(4)

should like

I

review

term

near

ket which should influence

self-fi¬

now

to the

now

policy,

meas¬

inference.

an

could turn restrictive and

demand factors in the bond

savings have turned up in recent

tend to explain the firmness
of the bond market during the lazt

sulted

con¬

a

nancing.

may

and

is

it

of

part

good

few of

a

the events of recent years

years

As

sion has continued in the 1960's a

Reviews Past Bond

two

market.

brief

although credit expan¬

sequence,

rising prosperity.

flow of

large return

a

to the

funds

accept a forecast cf

though they

see

Monetary

Capital

The Second Half of 1963

such

not

\

of these cal¬

that

the

re¬

90

for individual and
1

Non-Bank

miscellaneous
Institutions

Consaercial

.7
.3'

Banks

Business Corporatipns
State

&

Local

+
+

.2

Governments

1.1

foreign

.8

*et Change

8.2

.1

+
-

+

.7

8.1
4.7

-

.4

+

+

4.2

2.0

+

8.0

+

-

+
-

1.0

0

-

.1

Individuals & Miscellaneous

-

.5

1.6

2.9
0

+
-

.6
1.3

.4

+

5.7

-

+

1.2

+

0

+

1.0

.4

+

i7

+

2.1

.3

+

.6

+

.5

.4

+

1.9

+

1.5

0

-

+

+

1.6

+

usually small this
If

these




Debt

0

+6.2

+10.5

-

2.7

un¬

+5.8

+6.0

+7.6

year.

supply

the whole

interest

rates

this

a

model

decline, in
rates.

story

4.20%

and

there

1

1

on

1

would

bond

However,

1

V

demand

and

were

mortgage

/

—

statistics

suggest
in Publicly Held

is

investors

.9

1.6

85

V

4.45ft

.

n

—

Volume

197

Number 6264

The Commercial and Financial

Chronicle

(2023)
estimates
the

correct

are

larger deficit

without

the

high

for

eous

and

funds

of

individual

a

of

the sort that only the extreme

miscellan¬

investors.

Financing

Force

Need

Higher

means

Not

of its

half

of

to

think
can

1964

of

refunding^,

or

pre

4

is

in

analysis

my

of

ing the booms

high yields of 1959 should

refundings,

I

suspect

offerings of longer term securi-

we

H.

C.

Bailey

active

service

has

returned

and

has

been

to

elected Vice-President of Chemical

Bank

York

Trust

York

sociated

all fore¬

Underwriters

James

continue

yields

sustain

balance

short
of

River

policy shifted to "slightly less years. Finally,
largely because this seemed recovery again

ease"

to

necessary

hold

bill

rates

at

in

provement

it

easier

American

and

for

Federal

tion

of

less

they will do
suggest

that

of

1961

the

the

more

bank

rise

deposits

has

this

are

serve

subject to

I

of

the

Thus,

the

kind

I

of financial stress and

policy

hold down time

it

whole

for
and

a

the

In

will

rapid

reduction

a

rate

in

do

I

like

between

,

_

^rnm®nt

high;

they

of

are

long terrri

investment.

From

yields

corporate

of

are

over

municipal

down

Bond Yields

130

the

130 basis

prime

yields

(on

basis points. Long

about

new

governments

corporate

a"

"

and municipal

bond

far

clined during the next six month?

nerable

did

and

estate

mortgage

to

are

rising

vul¬

more

yields

than

is

the government bond market.

long term municipal yield

real

markets

this

yields

point

I

would like

believe

the

'

Ai

SEC

to remind you that

Again, following the decision ir
December of 1962 in favor of stil
less ease, Treasury bill rates re¬

firm,; Salomon Brothers &
Hutzler, is a dealer in U. S. Gov¬

mained steady, and the yields o
long government bonds and lon

ways

corporate jbonds ros© only, yeu
slightly while the yields of real
estate

mortgages continued to de-

cline.

Thus,

throughout

year pressure

and

the

forces,

ernment

-

*

bonds

have

An

a

and

wer»

al¬

by

other

market

notably the great flow .of

by Mr. Homer to the
Analysts Federation 16th An-

-'^ Convention, ChicaSo, in., May

13.

long rates, j

In the

period immfediately ahead




William

H.

the

^

and

5th

branch

-n/r

J.

Sullivan

has

Hornblower & Weeks
•

_

-

•

.

•

*.

Names Manager

o

of

Trade

pany,

the
-

Bank

v.

and

New York City,

the newly

of

%

%

in

&. Weeks.

office

of

*

Russell

Clark,

May

of

the

as

Hornblower

factureis
was

capacity,
an-

Trust

on
in-

*

with

since

Manq-

1927,

Vice-President

& Trust

m

Avenue in Manhattan in

January 1953.

-

*

*

Comptroller of the Currency
James J.
Saxon
on
May 9 announced

that

liminary

he

has

approval

given

to

pre-

organize

a

National Bank in Dallas, Texas.
bank will amount to

u wiU be operated

"Community

new

$400,000, and

under'the

National

titlfe

Bank

of

Qak
*

*

,

.

Clemming Kolby is made

£

ecutive

the Bank

of

an

ex-

America,

San Francisco, Calif. international
European

Francisco.

^

*

L.

curUy

in

*

*

has

Vice-President
Nationa,

Calif,

to

San

; v : •

Blanchfield

pirst

Angeles,

responsible

division

head

been

of

Se-

Bank

office

Los

trust

charge of

he will be in
.wm
m
operations for the de-

partment.
*

*

Toronto

-

*

Dominion

Bank,

Sir Mark

Dackerman to

elected

Beeghly and Lawrence
*

*

of

was

Credit

appointed

of

Western

National

II1LUI

JJUI dbC

PHILADELPHIA,' Pa. — Effective
June 1, Harry C. Dackerman &
Co., 1401 Walnut Street, members
of the New York and Philadelphia-Baltimore-Washington Stock
Exchanges, will be dissolved

i-,

i.

J.

m

£

Saxon

4.u

on

m

v

May

7

new

and

firm, Harry C. Dackerman

& Co. Inc. will be formed,
,nff.

annroval

to

organize

a

Na-

Initial capitalization of the

.

ih

Officers of the mmnration will
corpoiation will
Harry C. ^Dackerman, Presi-

an-

tional Bank ln Arlington, Va.

dent5 Morris Waber, Chairman

of

the^oard; Henry L. McKay, Ex-

new

ecutive Vice-President and Treas-

Richard

ure

bank will^amount to $1,200,000 ■president.
and ^ will be operated under the Assistant
of Ross-

•

Edwards,

and Ann Marie

Vice-

Glees0n,

secretary
occlcleU-y>

lvu"
J '

*
The

a.

and

charge of the branch at 43rd St.
8th

San

a Director;.

Harris

*
Trust

Rochelle to Be

*
and

Savings

Kuhn

to

James E. Mandler
.

was

advanced

.

to Assistant Vice-President and
Peter J. Brennan to Trust Counsel.

New

*r

•

r

T_

•'

T^^TY

JLlGUGrDaUITl V.-±

.

Vice-President.

,

and

of

Chairman.

>

The

Bank, Chicago, 111. promoted John

was

as

-

*

title "The National Bank

■

position.

elected

bank

The Comptroller of the Currency

Vice-

Trust, New York, to accept

new

charge

ing Department.

North

Hammer resigned as VicePresident of Manufacturers Hanover

continues

Bank

President, succeeding John B. Collier, III, who

nounced that he has given prelim-

Chairman,

10

National

,

'<

senior

A.

Texas,

Naitove

James

York,

a

First

Antonio,

a

Bank

New

of

department, where

~

Bank,
Pittsblirffh
Pittsburgh, Pa., commercial LendCommercial Lend¬

announces

Moe

Fort

Darrell

Cantwell, formerly Vice-President

division.

Pennsylvania

fhypdncLmercr Bank11^ N^rth
Commercial

G.

assume
ghawmut

Chas. M.

created post of As-

President

~

ap-

Com¬

*

Texas, elected

Litchfield, JN, Directors "

sistant to the President

America,

of the-National Shaw-

*

p

Trust

Vice.

a.

*
*
*
The Mellon National Bank
^0,» Pittsburgh, Pa., has

mi

to

elected

William P. Mullen

v

appointment

-

been

of

Manager
T

Vice-Presidents.
*

banking division,

%

Wl11

15

F. Gow

J.

*

Boston Safe Deposit & Trust Toronto, Canada, elected
Bosto">. Mass- elected RalPh Turner' a Director,

in

Mr-_Henry_L'. Schenk, President

Mr/ Hammer

Plaza

Wllson

May

manager.

TT

new

Comi,any'

*'

wil1

vestment

.

been

home

Frank

University State Bank,

merged

Wilson, formerly Vice-

hag

Wilqon

Mr, Moore also announced that
Daniel

*

appointed

of

office.

*

Lasater,

ment °f Blyth & Cq" Inc., New

an-

St.

Meyer,
and

The

the

.

Lafayette

F.

Mercantile
Trust
Co.,
St.
Louis, Mo. elected Frank H. Hamilton, Jr., Robert C. Wolf or d and

David

York

Foley Square, it will be Bankers
Trust's

York,

_

1

Eighth

Chairman

Sudekum,
Comptroller;

Manager of
international depart-

*

and manager Aof the
U- s- Government Bond Depart-

Mr.

tion

New

-

opening May 13 of
Foley Square Office.
2

and Trust Co.,

^AnrT 2^
'

*•

Moore,

at

Savings

"nde^ charter of The and
Sullivan

President

Trust!, Company,

Located

elected

was

Dime

?rllll'van„Cou"ty T™st, Company

the

new

nounced

public savings and the institution-, HARTFORD, Con n.—Donald C.
al scramble for yield.
We m?; Walsh has been appointed Resiagain see higher short rates and dent Manager, of the 100 Constitustable

^

the

address

Financial

the

?,S' New York and The

inarv

that

net long position.

las;

monetary policy towards fir^
offset

my

by both fiscal policy

to higher yields has been*approxi-

mately

me

of

Monticello,

Avenue.

Bankers

that the corporate

as

r
William w.

$

Street

&

*

Saunders

County Trust Company

*

43rd

Title

St.

J.

and

Initial capitalization of the

PharffA nf fUp hanVc
nf
charge of the hank s of

at

Savings

Westchester

The National Bank

City branch at Seventh

nounced

porate bond yields pf all sorts de

cor¬

Square

in

annual

Milligan, discount department,

Worth,

with

Fred

Edwin

and

York,

Bank

bank's

Banquet, May 1.

department

The

New York.

*

and

»

J. O'Heron,

Bank's

The

Hank of Wililamsburgh, Brooklyn,

42nd Street branch.

in

Bee

the

Vice-

became

*

Blumers

in

municipal bonds has been static.
pointed
H interest rates do rise, I belie\

ease,"

one-quarter of 1%, but orime

and

W.

Secretary

Divi-

BnhPrPT Vice-President, as ofX-PriS" of ofa

tax¬

a

the

less

with

associated

*

Bober,

also

are

Market Committee in June of 19P

rose

J.

are

initial shock, not much. Fol
lowing the decision of the Oper

yields

National

x

The

thTanDointo^t o°fLawrence^ President
fWv
ficer

points, prime

yields

basis points

supply of

Union

and

John

Assistant Vice-Pres-

1952

and

nue

extreme

basis), while long
government yields are down ohb

Perhaps after

"slightly

New

was

Boston, Mass.,

Avenue and 34th Street. Mr. Lowe
is assigned to the Lexington Ave-

other

the

bill

boy

1931.

m

Thp Manufacturer*! Hanover Trust
The Manufactuiers Hanover

have been in
unusually large sup¬
ply for almost three years while

to

of

*

able equivalent

ease mear

move

National

Bank. New York.

institutional

1959-1960

long

monetary

Treasury

the

Presidents of First National City

unusually

issue

new

down

to the bond market?

with

rela¬

tively

Rise

towards still less

banking

the

as

Clarence

in

Company before joining the
credit department of County Trust

Lowe have been appointed Vice-

Lon

bond yields

flow of public savings into
saving?
deposits of all sorts.

moves

his

*

the

departments of the market.

high

moderate

in

John

to

government

a

by th

In

in

that for othe

close to yields of almost all

will

banking

the

were

Com-

Trust

,,

forms

What

Bank,

.

successively

He transferred to Chemical

National

should

distinction

a

.

unem

Not Mean

Mr.

Bank

ident

warn-

ploymenc. Avery large part of the

Ease Need

office

an

Hanover

President in December, 1956;

trouble

present improvement in American
business is being financed

Less

With

began

1946

New York

outlook for long term U. S. Gov-

o

as

entered

*

conclusion

make

deposits,

economy

as

Mr. Blumers will head the First

alternatively to create a larg
decline in the money
supply. One
growth

1917

became Assistant Vice-

sion.

Conclusion

or

objective is still

in

President

(pure and simple)

market neighbors and stern

re-

months.

Sliawmut

am right those who

men

18

where he

last

requirements, it is hard for.to come-

wish to

has been

European business for

Bailey

career

con¬

n0^ he distracted; by sharp
cries of anguish from their bond

monetary
policy' to hold them
down. It is also very
questionable
whether
monetary

to

Mr.

price fluctua¬

expect and

are stock

largely

very low

states,

derson, geologist-engineer.

of

1958-1959.

no^ expect. If I

year

concentrated in time deposits and
this continues to be the case. Since

these

yield

and

with

range

in

occurred

commercial

been

leave

in

great cyclical price decline which

1962.

in

range

government issue. It also

tions

or

1962

-

price

kets in

However, during the past

southwestern

Auld

Manager, and Dr. Judson L. An- Bank,

accompanying chart illus¬
this

shows the kind

in

Trust

Bank,

during the balance

range

lower commercial bank
contribution to the capital mar¬
than

County

Department will be Ben F. Zwick,

one

a

1963

Auld, Assistant Secre-

at

Year Club

Donald
Mr.

a

years of service

National

Mo.

ment;

1963.

terms

estimates

my

in

r

Vice-President

of

The Chatham & Phoenix
National

trasts

reason

President

Bailey in the bank's Oil and Gas

trates

so.

This is the

Nodyne,

East

Vice-

as

State

into

rfimtv Lonli
CoUnsty N*at,onaI Ba,,k"

They

York,

this

The

Reserve

expect

the

New

of

in the direc¬

I

ease.

of

Bank,

White Plains, N. Y. who
has been associated with the
Bank
for 32
years, is retiring on June

President in charge of its business

First

Banking Association. The

First

Louis,

announced.

J.

the

completing 50

with

been

the

activity will make

the

to take further steps

has

pany,

Horace C. Bailey

the

on

O.

tary of The

was

last

for

25

III,

Trustee

Bank

of

Oklahoma,

Four staff members
were honored

New

*

Kellogg,

a

William

bank's National Division

economic

Co.,

in

business

Caddo,

«Rrvan

loan

on

the

conversion

Brya"

falters, I would
also expect yields to remain with¬

a

competitive level. The recent imsentiment

if

*

Savings

George
the

previ-

sly

with

rise in long term bond
yields.
Long governments should remain
in their range of the last two

term

payments

Twice in 1962 open mar-

reasons*

ket

to

for

o u

C.

elected

.

*

Trust

and

*

been

made Douglas Winquist a
Vice-President and Trust Officer.

Bailey,

who

stemming from monetary
policy,, but no sustained

has

York,
as¬

with

Oil

Mr.

and fiscal

Dingman

director of Empire Trust

*

the

analysis would suggest sonr
increasing pressure on the money

E.
a

*

where

he will be

my

doubt

no

the

Capitalizations

Company, New York.

man.

market

Monetary policy will

Revised

•

Com-

New

pany,

The

not b

New

,

forced higher.

etc.

elected

casting such an extreme upsurge
ties in amounts
Gas
Depart¬
probably fully as jn
prosperity. If general busines
large as in 1962. Thus, the Treas¬ volume
ment, it was
continues to rise at a rer
anno unced
ury
financings in
the
period
sonably. good
rate
and
thew
ahead will continue to hold up
should be no inflation * and no May 15 by
yields of both short and long gov¬ strain on
.Harold
H.
the physical and human
ernments.
The
Helm, Chair¬
Treasury's
re¬
resources
of the economy, tlv

quirements alone, howeyer, do not
suggest .that
yields
needbe

Officers,

James

re-

:

iiot

are

New

•

National

drr

reached in this cycle.

time to time additional

Branches

Hank,

occurrc

lyaO's.

xne

oi

New

•

*

Comptroller of the Currency
James J. Saxon May 8
approved

c

however, the
yields will be

correct,

long term

*

The

fund

under similar circumstances

therefore,

Consolidations

H. Tallgren and William E.

Weiner, both appointed Assistant
Secretary.

BANKS AND BANKERS

move

range of the last tv.

far less than that which

expect additional advance

and from

mentals

rise

this year,

and,

If

years.

However, the Treasury will have
we

policy will both

trading

John

NEWS ABOUT

there

doubt that monet?

no

fiscal

23

develops

men

<

.

should be

row

maturities coming due dursecond

"optimums

boom

rates.
Under the circumstance
yields will rise out of their nar-

ing, has greatly reduced the size
ing the

fledged

vigorously towards higher interest

technique of advance refund-

of its

full

and

Yields

Treasury, by

The
new

if

financed

be

can

1963,

necessity of bidding

the

Treasury

for

officers

named

were

On
will

May 23, Edward R. Rochelle
become

a

Vice-President

of

Lieberbaum & Co., Inc., 50 Broadway,

New York City, members of

the New York Stock Exchange.

24

The Commercial and Financial Chronicle

(2024)

and

COMMENTARY...

television.

Pointing

LEFKOE

M. R.

important
is

—

noticed

have

may

with controversial

their

had

virtually

has

political and/or
have

issues

economic

limits

no

to

mission a broad grant to authority
to regulate broadcasting 'in the
a carefully documented and wellpublic interest.'
Since neither
reasoned
article
entitled, "Tele- Congress nor the courts ever have
vision:
America's Timid
Giant," been able to agree on a working
Efron

Edith

by TV Guide.

week

this

asks

offers

and

—

In

to—the following crucial

answers

Look In That Inactive File
.

,Y.;'

.

hurt. And this is the customer
salesmen serve. He is

,

there is

fundamental

three

areas:

gov-

labor,

and

business,

ernment,

and butter.
/

year. Unfortunately, the period
nonetheless, between 1960 and May 1962 was

It
all rjght to bring Wall
street to Main Street . .
but if
we are ever going to build confidence in our industry, some way
.

must be found to eliminate,

once A

and for all> certain excesses

that

such

to

of

sweeping grant

a

the

FCC:

"We

has,

she

marked by the most comprehen- have no Dlace in a business that
sive outpouring of highly specu- is of vital significance to the
lative, marginal common stocks, continuation of our capitalist
that this writer has witnessed in system. In my book it would be
his 33 years in this business. Who q. k. if I could control my own
was to blame for the debacle? Why customers the next time another
happen? Can such an era wave of "something for nothing"
e n us ry
us
c
be prevented in the future? comes along
but there isn't
H broadcasting is to ever rid These are questions beyond the a salesman I have ever known
itself of "self-censorship"—a eu- scope of this column.
wbo Could do this. We are human

power

rruT^+

seeing the

are

Then, after pointing out that this
dearth of "fundamental coverage"

contorted

to

support

illiberal

an

ivr

a

*

*

.

liberal doctrine of public interest

phemism for "fear of government
But as a salesman of securities
retaliation" the full case for get- certain facts must be faced tostating:
fort to use freedom of expression ting rid of the FCC must be pre- day. The lay. investor has been
"If one were to boil down all to stifle freedom of expression." sented to Congress and the public, hurt badly. Possibly several milthese different types of diagnoses
And
aPPr°Priate groups to or- lion investors now hold securities
of the TV industry's trouble into
Minow's Position
ganize and present this case for that represent ownership in small,
one
phrase, it would be: floating
Newton Minow, who resigned comPjfte freedom of broadcasting struggling companies.
Some of
due

"self-censorship," Miss

to

Efron

sums

problem

the

up

scheme

by

coercion

of

gramming.

It is

an

against

pro-

ingenious ef-

It is an anxiety

caused by a

ent

It is

or never.

year,

omnipres-

so

emotion that the

an

a

men

swer

for all of us, you

in TV

make the decisions.

Qictlt/

We will con-

apparently grown used to it,

nothing
Why the Networks Are Fearful

Only

few

a

to

the

of the FCC's regulatory authority

they did," it was usually
record."

the

Ki ock,

Arthur

But

political columnist for the

York

New

danger,"

political

"potential

"off

Times,

pinpoint -the

"prod,"

reminds broadcasters: "The heart

men

willing to

was

of the danger

source

is

its

issue

to

power

deny

or

broadcast license—and its
refuse

to

renew

a

power,

that

vice

license."

(perhaps because he isn't

network

a

"The fear is

official):

inevitable result of the licens-

an

ing

situation.

broadcasters

The

must be licensed

if they are using

But it ere-

government property.
ates serious

problems because the

renewing
censes

year,

The

for

period

a

of

it

isn't

that the station will

"public

interest"—as

^i|

do

irritate the

teli

in power,

men

quite frankly, if I were

you

the FCC.

Com-

anything that might unneces-

Sarily
I

The FCC

political.

is

Communications

[Federal

.

defined

y

J|
jJ&

;

.

by Broadcasting magazine, the ominous messages suggested that, unless the stations,

Exposed

proved properly receptive to the

scared.",

FCC's views

Bill

of

both freedom
dom

the

of

Rights

guarantees

of speech and free-

and the Com-

press,

munications Act of 1934 states that
".

regulation

no

.

.

promulgated

.

Communication]
which

Commission

interfere

shall

right of free speech
forced

thus
should

"scared?"
ment"
to?

can

How

to

.

What

with
.

One is

Why

type

be

on

could

Unlimitea

j

Y

the content and

firms

\

Frank Dunne, Jr.

large fife" that has been hidden away

both

small, the millions of people
.

.

.

.

for

everyone.

time and work solves
lems.

/

your

desk, pick

your

up

tele-

.

tempting to make a serious evaluation of a situation . . . and security salesmen who at last have
found that they are in A SELLer'S MARKET . . . build a bonfire into a blaze. The aftermath
is difficult

in

without phone, and say, "Hello!" Say
... or at- more than this. Tell that former
.

many

But

prob-

customer that you have some en-

couragement for him. Then rethis contact. Make an appointment and go to see him. He
surely will welcome any information that will be offered on
new

the

basis

of

your

comprehensive

study and knowledge. And if not
...

have done your best Y

you

„

you

have offered a service

But What Now?

and

yQU

.

„Tt_

t

XT

Almost a year has transpired

can

gQ

to

on

Mr>

.

.

.

.

.

In_

active Number Two.

since the great "new issue" boom
Arid remember—
collapsed. Meanwhile a recovery
■
in the market value of the better
^ you }iave been reticent about
quality
investment ,■ stocks,
the approaching some of the people
Member of Executive Commit- "blue chips," the leading "growth who
have bought securities
tee (To serve until 1966): Joseph stocks,"
has carried both
the through you that have declined
E. Bitterly^ Dean Witter & Co.; "Dow" and the Standard & Poor ^ Prlce far helow their acquisiDouglas
Campbell,
Ladenburg, 500 Composite averages within ^on cas* • * • don ^ thmk you are
Thalmann & Co.; Leo J. Larkin, striking distance of their all time
anly security salesman in this

.

are

n

rently forced to use indirect pres- Upham & Co.; E. Maurice Moretti Although there has been limited be sold for tax losses ... there
sure on fbe networks: the threat Tarmip
r
x
r
M.
,
,
' comment by expert analysts con- are others that should be bought
"licensing °f n°t renewing the.licenses of
"'
cerning the May 1962 break per- • ; • there are some that are cannctwork-ownod stations.
iNovak, DrysdalG & Co., Alan C« tainins to the ^reat over-em- didates for additional purchase

the

_

V

„

'

n,

„

Regulatory Power

In

an

by Barron's list
the

what has been going on in

timing of programs,, they might Carl M. Loeb, Rhodes & -Co.; highs. During the past several Predicament. You have plenty pi
have some difficulty in obtaining Julian Riskin, Reynolds & Co.; months many second grade stocks company.
a renewal of their licenses.
Mary R. Tibbetts, Evans & Co., have also advanced, and new
After 1960, 1961 and until May
But not all of the threats are Inc., and A. Van Camerik, Shear- groups are becoming popular as 1962, you are also ^going to locate
implicit: Not too long ago, the son, Hammill & Co.
the vast accumulation of surplus people in your "Inactive File"
FCC asked Congress to amend the
Members of the Nominating caPhal in the hands of profes- who had more than one salesman,
Communications Act and give it Committee
T oui<3 T
Rapre
A
s*onal and semi-professional in- or investment broker. You may
power to regulate the networks;
'
vestors is flowing into the listed discover that your headaches are
at present it has power only over
Becker & Co. Incorporated; markets.
v
the small ones . . . there could be
individual stations. Without such Beatrice M. Bougie, Goodbody &
This is the historical recovery a^ opportunity in such a situalegal sanction, the FCC is cur- Co;
Thomas B.
Meek,
Harris, pattern after a market debacle, tion. There are stocks that should

Perhaps the biggest step yet to-

ward

explicit

control

over

gramming—-taken in the

toSTtoVtoStS ^ieP^Cmortheth«

lyzed

up on

"harass-

of

first, and most fundamen-

Act itself.

customer's

network be subjected

a

„

be

the

official

situation" croato f(zav^

The

."

inquire:

network

a

shall be

.

.

by the [Federal

...

,

A Sugges ion

an easy can present accurate dependable
UNIVERSAL.
At- information to some of the people
accountants, promoters, you now have in that "inactive

underwriting

„

running a network, I'd be just as
The

a

who keep on buying
reading a prospectus

Go'' *nc>
Treasurer.

by

■

,

.

and when we look
around us today ... we
are
elected. It is our job to help patch
up the wreckage.

is

torneys,
and

den» Stone &

serve

'-11

f

Donald M. Schu™anrb Bacbe& Co.
mission]
is
a
political
entity,
Warning Letters
Member of Executive Committee
every Commissioner owes his job
Assuming, perhaps, that im- (To serve until 1964): E. Victor
to the President.
So, everybody plicit threats weren't sufficient, Margand,
Auerbach, Pollak &
walks on eggs! The networks are FCC staffers recently decided to Richardson, and S. Ralph Trulio,
afraid of being harassed if they write letters of warning to, tele- The Dominion Securities Corpoare
criticial. They don't want to vision stations around the country, ration.

regulation

we

information

quickens. The desire for

dollar

Pres-

the

one

apparently follows this
whenever

~

quite

only

li-

rather than the normal three.
FCC

practice
sure

broadcasting

many

|

Co'' and Alan
K. Gage Parr*sk ^
Secretary:
Feon S. Herbert» Jr> Hay-

started

'

openly

;;11

P

idents: David
Bel1' Gruss &

implicit threats,

by

Commission .recently

the

lotment. Quite often

Weld & Co.

jn yet another attempt to censor

broadcasting

...

we have
demands
source of

..

President:
Frank Dunne,
Jr-> White,

at the end of three years, to renew
or

.

.

he subtly

inter-

the

identify the primary source of

and when

innocently
"disturb,"

and

Efron were willing

of

viewed by Miss

but

"goad,"

.

ability to obtain a "hot" new is- the market and then balance toA* *be Annual Meeting of the gue was based upon the amount day's price for some of these
Association of Customers'Brokers of other business he placed with stocks against reality. . — such as
on ^ay 2^» 1963, the Nominating a fjrm that participated in many earnings, management skill, new
Committee will present the fol- 0f these underwritings. As we- products, and the balance sheet.
lowing slate:
live through such an era, the pace If you are convinced that you

tinue to prod your consciences, to
and
automatically act to inhibit goad your ideals, to disturb your
coverage of national affairs."
sleep." And while Mr. Minow does

have

.

who make
are their best

customers

Take a look at a few of the
money. The salesmen no longer now thoroughly over - sold, and
^
1
had to WOlk dayYin and day deflated stocks that are familiar
(^USlOHlGrS JDFOKGrS out servicinS investment accounts to you. Notice how some corn... he waited for the next new
panies have made progress in
private citizens DAnpiTrn. Qlofp
issue and he Parceled out his al" solving their difficulties. Check

this charge by asserting:
danger that might spring from "Under our broadcasting system,
any
one
of dozens of possible as I have repeated so often, your
sources
—
a
danger that might Government does not decide what
strike tomorrow, next week, next goes on the air. Acting as trustees
—

.

too. We have quotas

e. greatest victims ot FCC these
people
bought
because
cens°rship —- the television net- others were buying . . . and for a
wolks and the individual stations, while there was a lot of easy

this week, has attempted to an-

potential political danger

.

aie

his chairmanship of the FCC early

continuous awareness

political anxiety.
of

we

our bread

performed a great service for the
networks and the television-viewing public. She has openly named
'
Last January, the National As- the fact that a problem does exist,
Efron
demonstrates that, sociation of Broadcasters pointed and has offered a perceptive anala serious lack of coverage
out the necessary consequences of ysis of the nature of that problem.

Miss

is

DUTTON

'public interest,' the commission- coverage,"

networks ac- ers need only decide that it is
tively avoid certain basic areas of served by the way they happen
coverage? If so, what areas—and to vote."

in

JOHN

definition of what constitutes the get "political fear out of network

the

Do

questions:

why?

BY

regulation

of

area

CORNER

commercial stations can broad- Ever since the r disillusioning
cast, the FCC majority could eas- market break of May, 1962, vast
further and appoition time numbers of individual investors
among various types of programs." have been quietly "licking their
Although Miss Efron never does wounds." There is little point in
get around to offering her own denying what has happened to
solution to the problem of how to public confidence during the past

its

suspicions confirmed for the first
time

an

it

because

adopted to determine how many //,;

"The Act gives the Com-

power:

into

chiefly

edents. Once federal standards are

significant Shirley Scheibla perceptively obdealing served that, in effect, the FCC

a

'S

is

limitation

broadcasting," where it can establish major prec-

of

"independence

documentaries

of

lack

they

the

out

foot in the door; it

as a

significant

gets
Television viewers who think

Thursday, May J6, 1963

.

.

dangerous,implications of this
move, Business Week stated:
Y.
the commercial time

BY

.

article
year

FCC's




published

which

threat

to

ana-

the

commissioners voted
limit

op

the

to

number

of commercials aired

of

_

Poole, New York Securities Co.;, phasis

on

Donald H. Randell, Filor, Bullard nothing"
&

Smyth;

Irving

J.

Silverherz,

the

the

"something

approach that

public,' and

for at present day

involved

everyone

levels. You could,

constructively help such an ac-

who count

rehabilitate

.portfolio.

a

tte FCC

Hay' Fales & Co': Bernard Wynn- participated in aftd out of the in" And you may find °Pportullities

impose

^amen & Co-; and Leo J. Larkin, vestment business

and

on

pro-

name

_

a

length

both radio

Carl

M.

Loeb,

Rhoades

Chairman, ex-officio.

&

Co., lay

...

it is my for business that you never ex-

opinion that the average to , pected.

small investor has been severely '

.

.

.

If you are fortunate to be with

Volume

firm

a

that

obtaining

has

and

mental

Number

-

the

up

to work. If

agement

.

.

Continued

the

lished reports

>

tical manuals

—

.

take

look

a

in

are

now

several
tive

years

and

Your

ago

can

All

it takes

is

conviction

the

problem

that

analyze it

active
work

some

toX coUraS

who

"Inac-

become

the

and

man

fade

to

then

a

act

wm eventuallv find the soto-

"

tion

" 0
I

Q

These

Ppnfpr A rmriirifQ
Vyt/llbt/I

tive

as

ruo

Trade

two

Director

sufficiently

appear

influences

it

seems

levels

recent

on

in recent

more

or

*.

.

fluctuate

widely

over

equities

And, for the Standard and

Poor's

period they

by

rose

like

a

pro-

sumPtion that full economic recovery ^ould bring more than
proportionate earnings gains. Abstracting from these cyclical factors, however, I think it is reasonable to assume that any substantial uptrend in earnings over we were not fully aware of the
tir"e would require proportional implications of this; business peror la''eer incrcases in the dollar mitted costs to rise substantially,
volume of sales. Competitive in- and was then abie to pass only
novations and improvements by part of the increase along in price
individual companies might tend

markups.

to

vigorous

total

raise

earnings

relative

basis of historical precedent.

on

80%.

portion.
The real reasons for this difference in performance, of course,
ne behind the behavior of the
P^ce indexes. In the 1955-57 period, the forces of vigorous na~
tional and international compete
tion were emerging for the first
time in the postwar economy. But

ful1 Percentage point or more.
yield

real

reflected

to rates of capacity utilization,
wb^cb are currently still below
optimum levels, there is a pre-

appear

the

increase

index of 425 industrial
stocks,
after-tax
earnings
per
share dropped 7 V2 % between 1955
and 1957, while in the 1959-1962

^or neariy five years, often by a
If

this

growth, while in the latter period
real growth contributed nearly

e business cycle, and so one's
assessment of earnings prospects
depends partly on the stage of
? ? cycle he believes the economy
*s in' And since Profits are related

Bond yields have in fact, to sales, but a sizable general inbe- consistently exceeded stock yields crease in profit margins would

practice

in

4^%

to

generalized

a

for

to

inducement

investment,

while

the

have

been

growth

will

come

the

quite

unlikely

In

the

later

period,

competition

throughout

and

cost

ruled

increases

moderated.

were

the

on

Given the market's implied

is

dropped
1950

company's

a

sales

|||BH|Hh reflects real growth rather than

|||^

^lH| price inflation
JH

If

should

make

with

15%

from

in

5%

below

But

has
even

yield

earnings

the

accrue

bonds

favorable.

more

to

later

or

of the stockholder,

comparison

expansion

in

sooner

to the benefit

I believe that the extent to which

Mr.

for

prospects

xi

Profits

rose by about one-tenth.
In the*
earlier period, however, only 30%
of

.

__

ro it Marg ns
SC
'

investor years.

of

aspects

have

prospects

of

York,

Trade

Tokyo.

ouclets

.....

ternal

New

.Organization
'

.£

and

in-

relationships

.

has been announced by Japan Ex-

(J E T R O),

that

increasingly

yield

growtb do not

associated;with the analysis of been
specific industries and firms. But here,

Center,

^

the;e

fayor

there

alternative

to

fundg

3%

intermixed that

so

equity

of Takeshi Ma-

Executive

as

Japan

^

possibility

become

ma

attracted

side,

W

r»

...

_

e

25

p0r the

nation; the price of this

belatedly
as-

recognized
lesson
in
economics has been to contribute

of market valuation. Usually the stated in terms of total earnings, sumption of a substantial long- to an environment in which our
inflation argument has been heard on the theory that reinvested in- term uptrend in sales volume, resources have been inadequately

/

HiXeC. Director
The appointment

the

alwavs

vegtorg

demand

the

on

3/±UL6S'

earn-

over time.

..

za

1-n

that corporate promjsjng

impossible to separate their rela-

i^ppUIIlLb

-pw«

And,
is

course,

rationale

ra HP

come

Tjl

T
V

4-

^

J\x3JT.l£0U

and companies.

v

Japan'

-,^1

^

_

that

wele ovlrliriced

they

File"

Lain

stocks

many

deceptiveyunder-

as

Is

priced

ings is expected

profits as wel1 as Product pncf
'
wil1 tend to rise durlng pen°dS ,In 'fw £ CUT?^
£ 15
°f inflation> while the mcome Clear that the relative attraction
fr0m fixed d°Uar investments ofKep-ulty investment has declined
wiU su£fer directly from any de-'substantially over the postwar
C"ne in real PurchasinS power' penod' 7 ' d>vldend yields on
But it is also evident that a basic average dropped from nearly 1%
motivation for buyln§ and hold" ln ,1950 ,to Ies® than 3 J. m 1,®61
ing equities has been and con" and
Z
m<2? tha" that
to be the chance to partici- current y. During the same pepate in the economic §rowth of nod, interest yields on top quality
the nation, its leading industries corporate bonds rose from under

Eventually there is going to be
recovery

^

IV If

.

tion is, of

around.

a

^

stock investment in recent years
bas rested in part on the w*despread assumption that equities
provide at least a partial hedge
against inflation. The presump-

best
man-

and the statis-

.

but

-

from page 1

,

combined with pub-

.

Z
**

limited

either

.

1

\A.TT9j1VZ1]lT

de-

are

to

go
.

.

vXl 0 vVLIl lli

.

A

'

lists and

with

at least

sizable advance in corporate

^J

ITlTI^T.lOYl £xYlCI

have to make

you

available

source

T

(2025)

regarding.

your

calculations

facilities,

The Commercial and Financial Chronicle

.

.

.

sleepers, the laggards,

pressed, gather
some

for

funda-

and the better issues that

go

6264

facilities

evaluating

information

of the

some

197

ratio

1949

in

and

1961;

is

it

does the

particular mix

of

real

utilized.

growth and inflation which produces the expansion make any
difference to stockholders? I
think that the record shows it
.does. In the strongly inflationary
Periods associated with wars or

changes

At

in

the

the

Federal

level

level,

and

struc-

ture of taxation and special rente-

dial

programs

lem

areas

But

the

key

clearly

is also

success

pend

in

are

likely to de-

continuing

upon

prob-

indicated,
close

at-

other major economic upheavals, tention to costs and competitive
1962 equity owners do seem to have relationships
by
the
business

currently well under 6%, based

fourth

record

a on

quarter

benefited. Thus, corporate profits community, and upon a willingafter taxes more than tripled be- ness to undertake investment opNew York
pects for real growth should in- earnings be retained rather than tween 1940 and 1948, reflecting a portunities as they are recognized:,
to assume his
||
||Pf duce far more sanguine expecta- paid in dividends, because of the 40% advance in the real GNP
•
new responsitions than the automatic conse- tax advantages of taking income and an 80% increase in the prices Does Not Count on Inflation to
bility.
quences of inflation.
*
in the form of possible price ap- of g°ods and services embodied
Validate Present P/E Ratios
Mr.
Maruo,
Among the numerous analytical preciation
rather than current in this measure. Though subFoi the stock market, the lesson
who comes to
"explanations"
of
the
level
of dividends. Still, I think we would merged for a time by price and of our recent experience—as eviJapan Trade
stock prices is the view that the agree that some discount should
wage controls, this is a clear case denced by the sharp break in
Center,' New
H m ZmKm - prices prevailing at any time are be. made in earnings .yields, on °f the classic inflation- environ- prices a year ago—is to avoid.the
York, followTakeshi Maruo
basically a reflection of the forces the grounds of volatility and un- ment, where the total demand easy assumption that stock valua*
ing a; threeof supply
and demand. In this certainty as to the timing and for goods and services far ex- tions will sooner or later be valiyear term of duty as Director of concept net additions to the mar- size of the benefits to be realized ceeds the nation's ability to pro- dated by inflation. Just as in the
Japan Trade Center, Sydney, Aus- ket supply of equities, resulting from funds retained in the busi- duce and where wartime financ- review of individual securities,
tralia, replaces Mr. Eijiro Fujise from new issues and also from ness.
.
•
ing had provided the liquid assets a careful analysis of the forces
Maruo

just

has

11

arrived

deal

great

difference

of

stockholders. In

short,

to

the

its

pros-

earnings. Some investors
have

almost

come

to

seem

to

prefer that

in

_

-

-

who

has

York

held

the

post

New

in

portfolio

City since March, 1961. Mr.
to Tokyo

Fuiise returned
~

.

holders,

May

on

volume

ieiuinca 10 lUKyu uu iviuy

,

Mr.

with

years

lu

+

T\iTn

government.

Japanese

+

earnings

major

participating

But
But

erouns
groups.

this
this

c™

side,

Most

Stocks

Ynei"er

sun-

simnlc
simple

wide

a

variety of factors. On the supply

of

branches

various

T

the

he

aggregate concept conceals

14

for

served

to

Are

whether

prices

the

by

investor
mvestoi

has

Maruo

funds likelv

of

present

against the

plied

JETRO
aiLiitw.

of
01

by

matched

volume ol tunas likely to De sup-

14, where he will serve as a Director
rector

reductions
are

foi

example,

the needs

are

recently, he was a key executive

for external financing and the

of the National Personnel Author-

to

reiaies

si

a

'

.

to

Pnor
in
in

he

that

of
ui

•

1

held

P

top

a

y*

wi

nsvchologv

;■*.

visited

Maruo

1951,

during

a

P

Service

Civil

the

a

hv
TT

by

^

S.

time

he

hP3Hmiartpr<?

TTni+ori

United

its

Postwar

imDlication would

seem

stocks

were

either

buy 15

years ago, or

a

interested

Americans, to

research

market

•;
fairs
■

,

and

take

to

Japan

probiems

^

equities

more

as

w

vniatnP

sett.ements

struc-

of the

be

occurred

of

inef-

the resistance

*1C1. ce and cost reductionssta e
orga^lzatlon> ^ne Jes even
to

postwar period,

substantially

'

^

growth
our

as

the

\
does

as

arhieve-

healthv

eco-

'
other

any

eeonomv

The stock market has recovered

in

recent

months,

and

previous
ber

ery

peak reached

1961

I

hone

that

Decem-

in
this

recov-

lybl. I nope tnat tnis recov

has been based

upon

renewed

investor confidence in the nation's
prospects
for more
vigorous

r^stthp futurp market s ass^sJ^|/lt
aPon the
of
woll
of

average

production capacity may be suf- degree of mfla ion and I strong-

as

preseni-

prices even though total
-x

•«

•

contrasted

with

bonds

likely to

be

on
downward than up-

the dollar volume of sales.

relation

to

the

interest

D,fference ,n
To

sub-

available

dollar

an

inflationary trend

support

this

assertion,

invest-

we

mar-

in

our

experienced

average rate

to re-

were

moot question whethits composition would be likely
a

provide

fundamental

support

I

returns

that the

it is

to stock market valuations.

refer to recent United States history. In the period since 1955,
have

jtx

environment, ly doubt that it will do so in the
profits is more foreseeable future. But even if

er
to

so

appreciable
^'

any

f

sume,

stantially> both absoiutely and in

support

such an

ficient. In

as

readily
j

slowing

mean

Cen-

in

vigorous

present

rect interpretation, but it is im- ments, must

ThiVam

will

ply-demand imbalances in stra- growth, rather than on the asgre? 0. m^rlt* Tbe P°int
the tegic areas. Such factors tend to sumption that generalized inflaf^ercise 1S sll^ply to demonstrate jncrease unjt COsts of production, tion will ■ prevail. The United
that stock valuations at any time putting upward pressure on States economy today will not

P°rtant to note that a continua- ket anticipates significant future nomic growth, but the first part

cor-

stake

1

.

tude for future changes in the

in

am con-

an«lvsic

^orrect—perha^s ®ach ^as

part in

a

■

nomic

sector of

and savings accounts, is the lati- ward> despite sizable increases in

Forces

such

«nv

but also the prices are now within 5% of the

growth

firipnt organization

The unique attribute of eclui- the, impact

which hag

of

of

+•

from

propose to speculate which in-declining industries, and the
Pr°P°? n uS
nearly development of temporary sup-

ties,

Changing

much

ment

These include not

uie persistence and
do
qo

-n

•

that

Qnly the strong upward bias in strongly

wage

investments
I
mvestmenis.,1

a

in-

This

conduct

Trade




COurse

This may

a

of real eco-

*An address by Mr•
aiysts

Federation,

Mitchell .t^tha

Chicago,

ill.,

May

13,

1963.
-

rW

J. C. Wheat UIIIC6

y"
MARTINSVILLE, Va.—J. C.
sumption
that
the
changed dends or price appreciation. But latter part has witnessed reason- Wheat & Co., members of the New
supply-demand situation is per- with the average dividend payout able price stability/What has the York
Stock Exchange,
have
manent. But what if corporate at 60% and stock prices at about changing growth - inflation mix ; opened a branch office at 5 Walmanagements .come to look more 18 times "current earnings, there done to profits? Both from 1955 nut Street under the management
favorably on stock issues as a would seem to be relatively little through
1957
and
from
1959 of A. Jackson Lester, III.
Mr.
supplement to capital, as debt to room for further liberalization, through 1962, the dollar volume Lester was formerly Local Manequity ratios continue to mount? Therefore, this must mean that a of the nation's output of goods ager for Abbott, Proctor & Paine.

tion

of current valuations would

depend

upon
—

.

*

of

tural

excessive

fixed

•••>

N0w> Orleans

attraction

other
oiner

result

fident

tident that any such analysis will

de- show that the stock market has

recent brand of inflation apt

r

inor

on

-

thn

against
againsx

dramatic upward revaluation ings yields have dropped
tbe

'
;
otr\er shows, and

W

thp

equi-

economy

Qf stockg

to

The New York Trade Center is
t

in

of

V

display the latest merchandise
Japan.

invpcfnrq air!

attractiveness

Dynamic

arp

products

reiat1Ve

Alterna-

now

h

,

that they are

rieariv

a

more

good

very

aggregate

strong
or

inor-

reiiectea

in purchasing power.

creases

to be that

11T1Pllcailon woulcl seem to oe tiiat

reflected

not
*

,

TT,anr!(J

the postwar period. The

over

considerations as these rewards investors may receive.
are usually. cited to help explain The fact that dividend and earn"

Eastern

fnnrtirm

!

Such

anesp

junctions are

and

ranm

4

to provide information on Japan-

industries

f.

de-

New York

the

to

T+e

btates.

inQtitnfienai

Ppnpral1v

.

Tan

for

riromotion

tradp

■ters.

market

thr.
institutional invostors and-thG

t-

conference

g

vriQrlro+

Assembly of

Japan Trade Center

from

of

.

enhanced

the United States and Canada.

to

and

,

law

U.

the

which

at

represented Japan at

trade

of

tn-irrimpdiafA

loneer-run

are

p

of

graduate

a

^

Mr.

,

reluctance

nrosnects

is

Tokyo University and holds

,

roinnhnoo

-

Maruo

degreO.

ese

the

and

aHditinn

.

ic

fUo

has

otates

5-

earnlngs', f ' ®^ullles nave De dinately
substantially more expen-

sive

affecting our economy is required
-fl t(? Provlde+a sound basis for over-

Tt

+u

perienced after 1951 in the United all market evaluation.. I

^"te™ capital gains.andincur not

om-

pos

'

Mr.

of

stock

new

e

Rai way

Manchuria

South

mA

individual stockholders to realize

Internau

tiomdTrade and Industry. He has

also

ctnoV

now

official

an

was

Ministry
lviiinsi y

Japan's
ddpaus

Z-

u

.

be-

come

r^glddie^such as the relatively dear
SWCivil'kTvTcrCom^sion tabTshefIci-poSns to issu"

V

total

have

^titxitional

in-

c

to

or

eauities

But ^ £mVIi

stock

relates

dividends

then

to fuel this^excess demand.

Now?

Dear

one

an

additional

as-

growth
either

in

returns

through

on

increased

equity,

divi-

of. this
some

interval was marked by
inflation while the

price

26

The Commercial and Financial Chronicle

(2026)

the Fed.

Are Commercial Banks

own

They must provide their

liquidity

and,

liquidity
ample,

Competing for Savings?
Continued
center

best

nual

dollar

cost

relic

to

commercial

people

gahering and using
the

of

Many

L's

&

S

zeal and drive of

is

have

look

CB's

the

at

on

the last

their

in

wartime

the

has

in

poorest

How

unaggressive

haven't

really

you can

few.

Yet have

they made money? Yes,

not

so

but

they've

much

list quite

legal

made

great

a

to

pressure

much

so

point

My

is

commercial

many

bankers have not felt
much

Have

money.

they could have.

as

that

a

under very

make

real

a

savings stems from

on

banks'

(1)

major

Invested

in many banks, even some with a
substantial

deposits,

the

of

savings

deremphasized,

savings

operation

characterized

be

can

percentage

as

an

orphan

even

oper¬

ment

talent,

devoted

time

directly

and

been low. In
many a
been unable to find

clearly

in

function

charge

and

has

bank, I have
officer

any

of

fully

effort

savings

to

the

savings

committed

to

it. Contrast this if you will to the
talent and focused effort the
cal

large

bank

competition
bank

in

much
^

say,

turn

me

ability

to

some

to

me

talk

achieve

to

on

a

high

savings

money

vital element of

a

reasonably

interest rate and to

com¬

essen¬

competitive
acceptable

an

Profits-Lag

to earn on savings
the commercial banks are

far behind the
What
A

be

can

first

member

savings

banks.
are

sterilized in

4%
at

the

Further¬

"reserve"

(except

for

is

1/25)

liquidity should dehence it is not a

shrink;
for

other

savings

is/ right?

the

complete

elimination

this legal reserve against
The Fed should have

time,

much

as

release

the

urge

elimination

The

unique
CB's.
tvhich

it

but
to

per¬

years,

to

legisla¬

effect

as

soon

it

a;s

can

on

Of

the

Moreover, it

use

goes

historic

current

is




is

reserve

dollar that
is

mort¬

a

priately

low

How many

Or

logic
not

of

an'

the

into the

origin
is

a

for

lacking.
insignifi¬

lic

while

reserves?

would

you

let
*

ago

I

„

would

Today

yes.

to

say

this

view

I

is

and

record, "Mr. Banker, if
at

time

any

posit declines

to

the

on

want

meet

de¬

to meet loan de¬

or

mand, just let

Sup¬

you

to

an-'

query

were

know. We will

us

be

happy to loan

to YiVz% of your deposits. You

keep

at low rates

you

such loans

tended

periods—no

paying

them

will loan if

out

for

hurry

down."

ex¬

confidently commit,

you

savings

your

longer-term

marketability
income

of

tended

terms
you

of

credit

in

got

on

ex¬

it

;

and

the CB

sufficiently distinct

was

credit related to

bank's

as

role

saving^

a

ed

Loan

Banks.

ment

of

It's

(2)
money

Let

clearly

a

distinct

stand-by

Actually

ciations

have

of the

some

chosen

to

on

dividend

sidiaries
cial

rates.

First

Corporation

lion,
tal.

of

a

sub¬

Finan¬

recent date

borrowing from the Federal
Loan

some

$92

mil¬

by

many

as

of

one

of

re¬

the

S

the
&

L

holding companies, had loans out¬

standing

equal

capital.

have drawn
you

on

to
Of

115%
course,

if

you

liquidity

your

don't

of 'their

have

re¬

them

if

deposits drop. But for the major¬
ity of the S & L's, the open credit
line at the HLB's is

petitive
very

capital

this

bank

would

into-

enter
for

advantage

much

a

major

com¬

permitting

a

heavier investment in

high-yield, less-liquid

assets

than

otherwise would be prudent.
The CB's have

no

such setup in

can't

for

money

deposit
day

is

their

n on

might

be

meet

are

temporary

needs, but I
to

of

lending.
It

should

pointing

H.

money

7/7<-•
to

L.

for

an

clear

and

as

I

suggesting

rather

answer
a

a

than

putting

than

an

members

liquidate

B.

avoid

long-term

do suggest

setup helps

the

need

to

investments

in bad markets and at poor prices.
New
mortgage-buying organiza¬

tions, such
created
under

as

those that would be

with "

pending

banker

support

legislation,

in¬

would

help the liquidity problem by im¬
proving marketability of mortgage

of saving

no

easy

the

income

levels

the

of

savers,

the purposes for which they save,
their sensitivity to changes in in¬
available

come

through;

savings

instruments

or

deposit

institutions,

the

other

at

other

income

and act

public

of the

optimism, regarding
Your

distinctive
bank
be

the

are

S

savings

clearly
L's

&

change

prov¬

are

un¬

their

general

savings

that

deposits

unvulnerable

sustained

and

is

clear

that

to

from

that

by, as well

mine,

the

It

will

as

interest

of

other

Do

as

know

you

they

as

with

of

their

changed,

should for

you

analysis?

My

spotty and unsystematic
tion

sugests

really tried to make

ganized
of their

do,

as

savings

in

an

can

you

have
ideas.

have full confidence

you

Can

assessment?

your

leaders

can

rough

some

or¬

analysis

Until you

money.

industry,

an

impressions,
But

bankers

individual banker

as

and

few

exhaustive

and

own

observa¬

have

that

>

about

are

have

you

and

effective

an

moves.

the totals

with

can

pay.

by- your

much

as

why

savers,

and why

deposits

you

influenced

be

you

your

help deter¬

rate

competition and their

be

you

convincing to

your

state banking

or

Congressional

a

committee?

Unwarranted Savings' Treatment

My

impressions

own

emphasize

that

they

pressions only,
of

banks

and

—

I

im¬

be

can

confident

not

S

&

ap¬

to

prove

degree

totals,
a

industry—as

assessed

the

volatility of basic

deposits
L's

clearly

have

investment

sessment

of

long-term

on

as¬

deposits

While

money.

The

premised

policies

savings

in¬

savings

differently.

very

as

good rate

a

and

savings

will

promoting
have

of

much

a

higher

inherent

time that

over

stability,
you

lawmakers-

group—or your
been

clude that

willing

as

they

those

to

acknowl¬

the

legislation
tices

S- &

your

view

L

limits

on

money

than

com¬

I

that

bank

prac¬

different

very

of

use

,am

existing

supervisory

and

which impose

con¬

little different

Consequently,

to

moved

of

are

savings

the S & L's is

on

as

bankers

edge. I would go further and
in¬

L

paying

actively

as

decrease.

the

banking

industries—have

&

your

bankers. It will certainly be influ¬

from

their

the

of

its customers may well

different

petitors.

S

the

praisal—are that the basic savings

relatively

herent

.

in

assessment

circumstances

and

their

and

savers

ac¬

going

isn't

their

for

eager

of

commissioner

especially

competing institutions

un¬

soundly premised.
But effective

indi¬

challenge of long¬

viduals you bankers have differed

standing

widely,

bious, requires hard, factual anal¬

of

judgments

as a group your

the basic characteristics of the

savings

dollars

characterized

asset-buying insti¬

tution. The F. H. L.

its

for¬

definitive solution.

You will note that I
more

vigorous

satisfactory

a

/

;

acknowledge

characteristics will be affected by

dustry, the MSB industry and the

.

am

bank¬

that must extend into the

commercial

a

underemphasized

industry search for
ward

It

in

//y

that

grow¬

Questions Legal Distinctions

help

B.

im¬

more

you

basic characteristics

money

have

expanded
■

are

to

sharp

" 60-

spurts

7; ■:

be

to

the

legal

that solid, confident assessment of
the

damn about it—so long

a

wrong,

are

do not want to

match- the

source

total

circle,

don't

money,

the

assessment

meet

or

available

banks

are

likely

renewable repurchase

-

bank's

more,

to

Thirty-

And
rates

when

vicious

A

(4) Until they
en

mort¬

or

needed

declines.

banks

try

year

a

pay

long.

period

a

savings

there

who

stand

of

earn

dollars.

repurchase

blocks

months,

If

give

as

area

this group,

conservative

share

with

real

a

•

as

base for pub¬

and unsolved competitive
problem

date,

they

that

mean

in

to

large

a

this

On

garded

Bank

by

10%, of their share capi¬

or

more

Thus,

Charter
on

below

uncom¬

competitive

pay

cordingly,

savings department for periods

loan

well

at

create

rates

lustily.

value

gages or other long-term assets of
a

credit

their

jointly
banks

serve as a

to

deals

is

to

(3)

new

of

agreements

their credit line to make
mortgage
loans in routine. The cost of this

currently

and

savings in their market

Buying Facility

owned

But

frankly

me

jus¬

and

really know!

you,

savings

savings melt away to competitors

savings

Suggest New Central Asset-

number

kind

same

deed.

a

sav¬

treat¬

are

treat

savings,

well

can

ing

re¬

draw

for

explain. If they don't

on

two-banks-in-one operation.

where

asso¬

that

returns,

—even

arrange¬

liquidity 5

,:

the

cautiously

operation would present operating
complications stemming from the

Perhaps

that

basically,

money?

know,

enced

at

me

highly vulnerable, that

as

me

well

deposit-money creation operation.
And

■■

danger of self-fulfilling prophecy.

so

bank's

lic sale of bonds (not to
banks)

cozy

Banks

failure

the

'

demand deposits.

as

Fed's

over

don't

I

future.

dogmatic

h'"

essentially

money

competitive

Of * six

a

seemingly

mediary would not jeopardize the
control

and

stability

>

compete effectively
as

of

inter¬

re¬

bers of the Home Loan Bank
Sys¬
tem have
today with the Home

money.

ings if savings deposits

the

real

mem¬

time

over

(1) It is crystal clear—to

-

can

savings operation of

enough to

other

Withdrawal

least—that few commercial banks

Not unless

that .relaxed

essentially the setup the
L's

CB's

to this turns

answer

savings

petitive

needed,

&

the

appraisal of the vulner¬

statements: % :

fied that the

ready

Federal S

sig¬

"Just

,

investing savings funds?"

several

invest

liquidity?

This is

and vital

question,

Important Questions

the Fed authorities could be satis¬

on,

a

the

liquidity do

to

:

be

counted

be

can

much

your

setup?

a

garnered

state

lim¬

would

With whom—the Fed"?

loan

assur¬

in the future. Of

concern

is

your

of

liquidity.

or

potential

have

logically

always uncertain future is

ability

to

money

investments' of

you

job. There is evidence that these

Clearly, the

say,

ful:

available

that

best years

need in

should

is.

of

supply

how

institution along
the following lines would be use¬

liquidity needed? If this

liquid¬

would

setup

and

demand exceeds lending capacity.
Under what other circumstances

ance

for

concern

institu¬

nificance

home

bankers

petitors

tify,

Let

new

by
you

of money

have attracted and that your com¬

liquidity.

own

a

immediate

similar setup which would

90%Vof

they

or

individual banks, to

as

interest

lower

the kind

ers

having,

pub¬

a

through

in

dif¬
self-

those

is at

for

Republican

created

than

liquidity for the savings operation

about

Note

deposits drop

"both

(other

institu¬

basic

really

portant, I don't think

on

the

great. But what kind

have

valid.

publicly

you,

money

and

ferences

those

than

competing

there

are

savings dollars

of this

econ¬

concern

into

Are

rates)

the

appraisal

less

the

tions.

that they do not

so

me
emphasize
the
im¬
administrations it has V Let
portance I attach to this question
feature of deliberate

a

ited

Reserves

the Federal Reserve

pose

of

especial

Perhaps

answer

agreed with those of you who
whether

elements

apply to

management

tional

total

the

on

much more restrictive

different

heavily

more

CB's

This

earnings

should

Banks

But relieved

policy.

seek

the

with' inappro¬

Stand-By Liquidity

swered

the

on

bear

the

building

been

differ¬

have

liquidity

of

liquidity.

ity in the form of

given

a

concern

striking

a

provide their

mone¬

of

The

A

that

little

a

them

write,

can

of

protection

means

have

lets

you

of

lengtn

have to continue to pay the price

is nothing new; in fact, for

CB's 1 been

the

•

which

Democratic

"yes" to this last question?

•

of

mortgages

invest in

can

the

vigor¬

the

to

my

you

and

ously seek to develop institutional

make

years

group

very

them

arrangements

rigors of monetary

restraint

This

of

liquidity needs

operated

the

•

burden

It

as

deposits

Have

L's

&

serves,

required

savings

three

reserves,

should

smoothly.

as

of

savings.

of

sheltered

investment,

CB's

cautious?

Home

join wholeheartedly the grow¬
ing list of more eminents in urg¬

the full

through

ently than have the S & L's. Who

re¬

I

haps

longer

competitors

,

setup

advantage.

gives the mortgage

degree

a

economy must

facts

does

owner

have assessed their
on

the

on

obviously

were

liquid

serves.

tion

quite

of

non-earn¬

Banks.

so-called

substitute

ing

first

and

serves.

balances

of

is

requirement for

Reserve

source

it?

villain

Currently

available

posits

about

obvious

reserve

this

more,

as a

done

required

Federal

not

competition.'Why?

and

legal

ing

fuller

serve

*

.

ability

money,

the

Savings

on

It also

home

Focusing

haven't

profit.

In

in

summarize

investment

gives

mortgage money to the home¬

omy.

about.
a

petitive effectiveness. It is
to

areas

I would

available

money

degree

gages.

correspondent

now

earnings return
clearly

particularly

It

when

—

heavy.

me

invest savings with
for

one.

tary restraint to achieve

v

up

for

expected

tial

vestment,

setup.

restraint. It also

longer

^

more "

from

(3) Accepted higher risks in in¬

can

The

is

to,

balances.

Let
you

devotes

typi¬

were you,

liquidity

good

a

be

let

Your

area.

quietly

have

pushing for

borrower

fully.

more

maturities.

un-

ation. The percentage of manage¬

be

the

of

many

don't

I

but if I

answer,

owner.

competitors,

much

(2) Invested

suspicion that

my

achieved?

of

particularly the S & L's, have:

S

Further, it is

(and

rates

money

thoughts in this highly important

mortgage market and cuts the cost

earn¬

three major factors. The commer¬

overly

fight in the savings field.

L's

banks) .have

interest

tight

savings that

flowing

Now

share accounts safer. It does make

handicap

reserve

small part of the story.

a

power

cial

they could have,

as

they grown? Yes, but not

'

ing

sus¬

pect that

&

members'

ex¬

ploited their opportunities? I

•

the

only

and

managements

that

But

with":

unimaginative

uninspired,
—banks

years.

banks

know

you

to make

and

thus the number of non-members.

by

commer¬

the

but

in the last 25
of

many,,

System

is

banks

the .S

high

of

realized

that

be done

this institutional advantage

savings

periods

of

banks—could

5V2%, 20-

a

can

in

..

Basically, the difference in

locations have been able
money

Reserve

demand

cial

all

Federal

demand

rising interest rates,
in

the

in

and

about

and

terms

in

they would be most used by the

some

arguing for this change is No Need to Outlaw HLB's
System
the desirability
of reducing the
I doubt if you can, or should
disadvantages of membership in
try to, quash the Home Loan Bank

loan

upsurge

deposits, growth

.

:

been

Aided

success.

on

or

mortgages,

losses

ex¬

Also

major handi¬

view,

my

general

v,

For

of

liquidity

Government

year-mortgage. What

sure

of the banks in savings com-'

petition,

at

This is

continuing cost that, absent ac¬
tion, will grow as bank savings

approach

to savings in

20 years. One of the
caps

banks

year.

grow.

let's

of the

a

62% of the return

an¬

historic

this

three-year

a

price.

a

Thursday, May 16, 1963

investments. But the price of such

course,

yields today about 3.4%,

a

the

the way up.
Now

the

place the

of

$115 million

some

savings.

underdog

an

would

exclusive

The

their

of

I

•

9

page

interest.

of

concern

with

from

item.

cant

has

of

...

seem'

as

properly

of

one

"uncer¬

premises,

however

ysis and solid projections of
that

sort

justifies conviction,

emotional

opinion

or

tainty" and caution. Your collec¬

formed

tive uncertainty is reflected in the

words,

wide

projection of savings

differences

bankers
ness

of

you use

it

is

appraise

savings

Congress
tions

which

the

and

you

attractive¬

in

the

way

savings money. Moreover,

reflected

visors,

with

and

and

you

in

the

of

banking

hence

have

prime example,

to

in

attitudes

the

live

as you

the laws limiting the

of

super¬

regula¬

speculation.
the

is

sound

for

a

have

not

well know,

of

course

tion

any

would

be

prereq¬
pro¬

job both

for individ¬

great many of you

invested

present

and

legislative
and

in¬

char¬

money

a

a

not

other

analysis

necessary

the industry

ual bankers. A

even

In

posals. This analysis is
for

the

percentages

of

uisite

as

As

job

acteristics

a

by.

du¬

so

laws

aggressively
permit,

and

general liberaliza¬
permissive

rather

Volume

than

firm
can

197

mandatory.
up

Number

So

»

.

The Commercial and Financial Chronicle

,

must, capital; they properly expect from
management
a
good
return
on

you

solidly

more

6264

what you
and should do with
your sav¬

ings dollars.

total

capital

porting
The

Differences in Mortgage

Now let's

„

of

turn

to

another

area

disadvantage—
legislative
restraints7 on

tighter
CB

mortgage

than

on

lending-

practice

that of your competitors.
These include length of maturity,

savings

of

mutual

is

a

operation

rather

than

holder profit. If anything,
cent

tax

often,

particular

banks

to

a

of

action

than

Surely it
the

S

to

&

L's

the

gressive

losses

from

that

argued

better

prepared

that

legislation might well—

of

tively

in

depth

a

experience

of

management ex¬

a

—

knowledge and

cut

into the

vantage

of

the

mutuals.

recent

policy

Comptroller
and

hence

deserves

mercial

banks

com¬

from

are

growth

evaluation

of

parative management skills

were

generally valid, must it be so? In
field

one

cial

after

banks

new

lending

ties

had

skills

commer¬

to

develop

and

capabili¬

their personnel

among

go: outside

needed

another,

have

to

get

to

or

with

men

the

specialized knowledge and

talents.
I do not conclude that the broad

that they cannot be

effective
be

in

less

competitively

mortgage

skilled

means

lending

discreet

or

or

than

their competitors. True, the presi¬
dent of a CB is less likely to be

mortgage

a

L

&

,;;S

the

growth
will

in

specialist

president.

than

On

the

other

the

brief

high¬

savings

savings. If the

continues,

be

along
growth

deposit

needed.

Ifthe

savings

perspective

and

supervision

objectivity

the

of

activities

mortgage lending officers.

Moreover,

banks

would

of

mort¬

on

com¬

permit

but

not require more liberal
mortgage

lending. I would caution that the
limited

bad

postwar
not

in

of

itself

We

market for
for

well

liberal

have

had

lending
seller's

a

housing in most

two
be

not

in

the soundness

prove

more

practice.

experience

of the S & L's does

years

their

kets

debt

this

capital

to

growth

and

becomes

especially

analysis which I won't detail

here,

have

I

erate
sues

the

in'the

case

next

of

home

values

has

years

of

served

weaknesses of

the

to

last

20

conceal

the

lot of home loans

a

—to make bad loans look good on

the

record.

lending

Effective

well

may

mortgage

become

more

difficult in the future, so that the

practices of the most liberal lend¬
in

ers

poor

the

recent

guide

to

past

the

be

may

keenest

tice for the future. But I

prac¬

am

willing to conclude that the
mercial
of the

bankers

freedom

same

theircompetitors
present

A

their

that

as

the

To

ferred

lesser

a

stock

low-cost

pared

impressed

is

to

pools

of

their

stem

cost-freP

c a

p

i t

a

earnings

from

funds

in

1 Preserves.

on

invested

capital may often be pre-empted

through the need to expand capi¬
tal to support growth. Otherwise,
or

in

the

earnings
to

short

on

capital

coyer current

ments.

holders

run,

not

are

added

has

pre¬

bank-

stock¬

gratis suppliers of




of

debt

and

Similar

stock.

to

raise

his

as

changes
most

for

state

for

banks

supervisory

would

be

states, would, in

the

tage

of

the

of these

use

additional

capital

mutuals,

•;

h,

r e

est

&

e

York

New

advan¬

while

will

Would
At

late

tions

ing
Henry M. Watts, Jr.

the

25th

present

in

my

re¬

been

held

since

of

its

formal Con¬

a

me pay my respects, or
accurately, disrespects, to
Regulation Q. Obviously, I have

been

mainly concerned

barriers

performance, and if
well,

can't

you

concerned

ings

with

to; outstanding

with

you

be
the

the

of

Goldman,

Sachs

Jaffray &

the

&

Underwood,

particularly
ceil¬

interest imposed by Regu¬
lation Q. Yet Regulation Q should

My

quarrels

with

\

somewhat

familiar

suggested

by

ments,

I

object

restraints
of

that

several

I
of

a

The

dangerous

been

until

are

for

periods

of

slow

the

to J the

that

have

seen

the

banking industry

Co.,

In¬

four

Governors

A.

Koshland,

as

re-elected

and
of

Robert

Total

is

33,

with

Governors

the

of the

vigor¬

is

In

main

from
many

connected

will

public.

as

Trustees of the Gratuity Fund,

families

the

bers,

are:

Spencer

of

William K.

Trask

Rutherfurd,
6

deceased

of

&

John

Company.

mem¬

and

John

Rutherfurd
/

the

a

of

boom.

fact

to

that the Treasury

take

in

gations
which

..

points

most

liquid
It

is

a

is

a

return

Wall Street Art Assn.

been

off

some

of
of

payments problem.

Hanes Named Dir.
John "W.

Hanes,

investment

Jr.,

banker and former U. S. Assistant

Secretary
elected

a

of

State,

has

director of Olin

•

'

A

is

Wall

Street

holding

its

at

the

Street

Art

Association

semi-annual

ex¬

Mr A

has

&

ing

in

there

Assistant

United

and. Assistant
for

order

against
will

be

policies

the
to

Secretary

Nations

not

re¬

to

1953

from

1957;

of

Affairs,

Secretary of

Avenue

and

Park

office

tional City Bank.

of

First

Na¬

He

has
at

conferences.

He

Commissioner
Commission in

international

served

the

of

U.

as

S.

Caribbean

great deal of their

which

psychology

to

1960-61, U. S. Rep¬
Council

the

European

Migration,

Switzerland,

1959-60,

the

the

to

meat:

that restrictive policies that woul'\
marked influence

on

nr°""U

was

Dele¬

General

UNESCO

in Paris in 1958.

During World War II, Mr. Hanes
served

in

It is quit*

economy

the

Geneva,

and

Vice Chairman of the U. S.

the bond market

which should

of

Intergovernmental Committee for

the

U.

S.

Army,

graduated

a

United

represented the
numerous

ities

have

State

1959-61.

resentative

bearing obliga¬

allow

for

1957-59,

from private to Captain.

not

Deputy

State

so

high interest rates.

away,

Spe¬

was

Secretary of

Security and Consular Affairs,

States
a

service

Department.
He

Assistant

is

several

with) the State

State

iff*

firm

follow¬

years'

Jchn W. Hanes, Jr.

an

of

since

Co.

.1961,

pur¬

strong and

will

an

of Wertheim

plagued with curtailed credit

run

Hanes

been

banking

stocks

was

to

been

Mathie-

Chemical

son

evident that the monetary author¬

The

Gov¬

balance

our

c

was

Semi-Annual Exhibit

securi¬

the

using to take

pressure

gation

and

offer

demand

-

of

area

of fund

And

bust

the

Government

addition,

development

and

15

successful

a

and the monetary authorities

have

Conference

boom

was

May

exchange

out

this

has taken place in the past whe\

,,

the

*

the

is still in existence'for the

the

.

such

through

way

of

care

availab

position

income

new

investment

opinion the-

investment

impor¬

recent

Government.

ver:

glamour in favor of equities.
This

of the

this

involving mainly near-term obli¬

conditions which

one's

tions will lose
•

of

purposes

there

the

happening,
in

that fixed

Beckers, of

Co.,

of

shifts

issue

cial

improved

protect

such

buyers

the New York

eventually bring about

turn

to

from which payments are made to

restraints
as a pro¬

much

tant

are;

the economy is now moving on tc

industry, who

pension funds of the public vari¬
ety have been among the

this

small group in the financial dis
are

such

tional buyer. According to
reports,

con¬

power.

trict who

Re-elected for three-year terms

hibit

tection from the rigorous demands

a

and

is

associate

common

because

yield

Treasury

shift

a

into

proposition

representatives

as

no

is

Corporation.

Contrary Opinion

Exchange's

not

securities

that

-

hedge against the loss of

partner

Funston,

stems

app-*3

This, however, might be

the

Keith

the

psychology, there is

bonds

chasing

Co..

including

appointed

are

a

likely to be

as a

when

especialh

In

is

there

to meet the ideas of the institu¬

as

much

funds

there

as

inflation

from

membership of the Board

President,
three

Lewis,

&

.long

not

partner of Carl M.

J.

Estabrook

of

that

of

area

investment interest in

purchase of fixed income

the

McKinnon; Stephen

a

supply

the

price

in the

or

obliga

investors

the

bearing obligations.

Richard M. Crooks, a partner

of Thomson &

53rd
on

&

have

mass.

banks,
the

Neuhaus

for

first

finding

too

raising

money

real

available

i

of these

controlling factor is the

large

of

languid

their

savings

commercial

bankers

from

in

restraints

of the slow-moving

other

is

as

pace

competition

it

often,

competitor
view

of

man¬

necessary

ous

myopic

one

Too

has

such

device to

a

for

managements

Q

past,

to

maximum

and

folly.

Regulation
the

a

are:

industries.

maneuver

prevent

As

principle

on

favor

on

com¬

apply to only

agement,-unless

-

are

grounds.

competing

Further,

to

Q

earlier

my

President

new

$300,000,-

portfolios

to

crowding

the

small,

was so

a

the

for

seen

future,

assuming

The

the

for

100%indicates

ury

in

yield-conscious.

from

for

which the

ernment market which the Treas¬

ton

levels

change

of

still

ties.

yield increment is

as

are

one

pur

its

these

attractive

still very

cerned,

corporated in Houston, Texas.

on

go.

Underwood,

term

-

demand

reached

100%

from

maturities

trend

are

that

refrains

Hopwood in

Curtis in Boston, and Mil¬

R.

The

foreseeable

far

as

partner

a

long

many

issues

will

at prices which

away

bit under the

a

The

though the level of the capital

as

market

ing put

on

while, is show

a

fact

not

original

offering price of 100% and is be¬

able

raising

Nevertheless, it does not

Barton, managing

Co.; Harry C. Piper Jr.,

&

can¬

along with

have been

been
are

Governors are:

new

Frederick

Piper,

public.

Plateau?

upward

have

have

earnings Loeb, Rhoades & Co.; John J.
can't earn Phelan, a partner' of Nash & Co.,

present

the

tions

partner of Eastman Dillon, Union

of

the

improving

investors.

1817

in

then

Y'

partner

have

Government

Accordingly,

from

year/adopted

of
the

outstanding

Securities & Co.; Gustave L.Levy,
a

been

issue market,

money

may

who

marks, let
more

signs

the

Government bonds, the best credit

has

permanent spots in the

elec¬

Annual

stitution.

D.

enlarg¬

.

which

on

yields

re-elected, all for

Exchange,

The five

the
-'

to

while.

four

and

terms.

have

of

offering

new

at

decline

the

for quite

poses

were

when

ton

Regulation "Q"

point

be

because

three-year

son

Remove

this

Yields

not

received

was

improving

favorable effect

as

raising

money

and

new

that

well

The fact that the price

offered

belief

too

paid

bonds

a

new

000 issue.

development which

a

long-term

Treasury 4%% of 1989/93

syndicate

tion of corporate bonds

the

elected

were

readily

breathing spell in the flota¬

a

a

of

new

Price

concerned,

The capital market, largely due
to

Governors

still

>

the

Bond

1961.

Five

the

the long-term bond market.

Chair¬

in

Lower

Treasury market remains
steady despite the^ fact that the

are

market

into the

not but have

leaving the banks with the advan¬ Minneapolis, Minn.; Albert Pratt,
a
pa.rtner of Paine, Webber, Jack¬
tages that go with stockholder
ownership.

capital

bonds for
-

the

as

because

originally

Board

Vice

Treasury 4^s in Demand at

The

point just

a

at prices which are generally un¬
der the ones at which
they were

Board

r,

been

the

rates

come

Co.,

member

far

as

funds

digesting

re¬

part¬
i b

fa¬

more

ducive to somewhat higher inter¬

one-year

the

the

losses

outlook for

healthy

a

The

of

time

to

ing needs for credit.

of

wil

business pattern is generally con¬

Mitchel,

Watts

view, be

my

for

sources

cost-free

c

in

capital needs would somewhat cut
into

5

of

economic

strength

Associa¬

Watts,

senior

policy

necessary

desirable. Wider bank
lower-cost

of

This is

Mr.

time

In addition the

moveable

second

a

ac¬

instruments

from

country is considered to be

Con¬
Divi¬

Ex¬

Governors

stock

capital in this form, for
only

Bankers

Chairman

there

Williams

Savings
the Savings

change.

The

indicated

freedom

Professor

National

Governors

man

preferred

for

as

Stock

com¬

willingness to regard subordinated

available

dividend require¬

Obviously,
are

the

elected

term

served

capital

common

Comptroller

by

60th

Henry M. Watts Jr. has been

relatively

a

of

be

of gold.

common

extent,

also

source

clear that restraints
or¬

would

since 1958 and

added isrues of

freedom

advantage

institutions

mutuals

as

accumulated

True,

worthy

justifiable.

earnings

competing

ganized

com¬

Capital Competition

further

the

un¬

of action

and

disparity is

Cost-Free

of

not

are

a

will

To Board

has

become

advantages of mod¬

of subordinated-debt is¬

use

over

stock.

may

two. Further, the rate of inflation

it

NYSE Elects

support

desirable. On the basis of inquiry

mar¬

decades—this

trust—that

address

rates

into

be brought out.

the

short-term

the not be any important outflow of
strongly funds from here even though there

went

would

sponsored by
of. The American

ner

which

Y '

;

loosening 'of

lending constraints

gage

mercial

to

it

I

New

,

of

is high enough so that

stand-by

vorable

a

low-cost

ness,

ceptable, normal

^useful

a

hope—and

growth is low-income return busi¬

raising capital for national banks.

bring

freeze,

the

capital

more

be

to

freeze. If

in

level

present

com¬

hand, the bank president should
expected

deep
deep

CHIPPENDALE, JR.

It appears to be the current
opin¬
ion in the money market that the

makes

comfort¬

more

the

experiencing

.

earnings

with the cost

lending operations of CB's

'

it

it

since

helpful

lighting here. A number of

limited

this

Fed

put

if

or

tion, New York City,

of

JOHN T.

I

Now,

(

prove

BY

that would best

ference,

of the

one

changes'

may

rapid

if

the

to

♦An

;v

■

Financing

Indirectly, however,

with

Even

without

levels,

Q,

able,

sion

have.

not

and

you

before

Subordinated Debt Issue

commercial

do

Regulation

never

cost-free capital ad¬

pertise—in mortgage lending that
banks

the

sibility for legislation that would

argument

mortgage investment has given

them

In any case, I see no fruitful
pos¬

ag¬

Some S & L spokesmen argue to
the effect that their specialization

led

to

masse

good time to get rid

a

on

ceilings
have

their" circumstances.

submit, is

competi¬

'

One

suit

in the short run, at least—activate
this inherent advantage

logic if it is valid.

some

en

the re-/ est rate strategy

might

especially

lending.

does have

freedom

competitors?

be

are

follow

less

their

cannot

absorb

well

have

jump

Reporter

Too

careful consideration of the inter¬

subject to taxation.

dollars

the

lines

maximum

new

by encouraging the more
percentage of appraised value and7
generously capitalized mutuals to
other significant terms that influ¬
pay out a higher percentage of
ence the rate that can be
charged. earnings in dividends and have
Why should CB custodians of the a smaller net
savers'

in

Our

or

well.

as

changes

along

stock¬

practical

on

grounds

of

as

for

are

basic

position

mutuals

their

tactical

sup¬

of competition. My

pressures

objections

operation.

capital

successful

aspect

competitive

i

the

cost-free

the

Investments

including that

and

(2027)' 27

in

1950

from
and

Yale

was

an

rising

He was

University
economic

specialist in the Office of the High

and interest rates would be in the

Commissioner, German y, from.

offing under such conditions.

1950

to

1952.

28

The

(2028)

the

icle"

—

now

are

carried separately at the

the

end

company's

are

•Also

under

shown

-Proceeds —For

—None.

/./'

American Pacific

are

July 9, 1962 filed 94,500
Business—An

open-end

izing in

licly.

health,

common.

life,

casualty

Proceeds—For investment.

offer

Cedar

Office—1523 Kalakaua Ave.,

Underwriter—None.

accessory equipment for musical instruments.
—For inventory, equipment, debt repayment

Power & Telephone Co.

Alaska

products.

April 1, 1963 filed $600,000 of 6% subordinated deben¬
tures due 1978, 240,000 common, and 10-year warrants
to purchase an additional 180,000 common. The securi¬
ties will be offered in 600 units each consisting of one
$1,000 debenture, 400 common, and 300 warrants. Regis¬
tration
also
covers
an
additional
92,500 outstanding
common. Price — By amendment. Business — Company
furnishes electricity and telephone service to Alaskan
communities of Craig, Skagway, and Tok, and supplies
electricity to Seldovia. Proceeds—For debt repayment,
construction and working capital. Address—Fifth Ave.,
Skagway, Alaska. Underwriter—Jay W. Kaufman & Co.,
New York.

•

Atlas
March

—

Tenn. Underwriter—To be named.

company for two
loan
repayment,

All-State

Properties, Inc.
1962 filed $5,000,000 of

tures due 1977.

subord.

conv.

a

Charter Oak Life Insurance Co.

—For

Business—Company and
general real estate business with

•

•

subord. de¬

advances,

to

Automatique, Inc. (6/3-7)
1963 filed 254,975 common, of which

April 26,

emphasis on land development and home construction
in Fla.,;Md., N. Y., and Ky. Proceeds—For
repayment
of debt.
Office—230 Park Ave., N. Y. Underwriters—

sale

//% Amerel Mining Co. Ltd.
July 31, 1961 filed 400,000

tion

shares.

Price—500.
Business—The company is engaged in
exploration, de¬
velopment and mining. Proceeds—For diamond drilling,
construction,, exploration and general corporate ex¬
Office—80 Richmond St., W., Toronto.
writer—E. A. Manning, Ltd., Toronto.

penses.

-

American

March 29,
are
to be

Under¬

vestment.

Address—807

Lansing, Mich.

American

Bank

Underwriter—First

Detroit.

■

of

&

Trust

Michigan

Bank

was

shares

be

to

Price—$12 per unit. Business—Production and
designed to control odors, bacterial
air

and

and

sale

development, produc¬
vaporizing unit for dis¬
Proceeds—For debt repayment,

pollutants;

of

an

and

electronic

named Chemair Electronics Corp.

Chesapeake Fund,. Inc.
March 5, 1963 filed 100,000 common. Price — Net asset
value. Business
A closed-end investment company.
—

Proceeds—For investment.

Office

—

156

South

St., An¬

napolis, Md. Underwriter—None.

"Adanim"

Mortgages &

Loans,

Chestnut Hill Industries, Inc.

29, 1961 filed 300,000 class A common, of which
225,000 are to be offered by the company and 75,000 by

Ltd.

stockholders.
facture

of

Price—$5. Business—Design and manu¬
women's, misses' and junior sportswear, co¬

ordinates, and dresses. Proceeds-^For debt repayment,
equipment and working capital. Office—2025 McKinley
St., Hollywood, Fla.
Underwriter—Clayton Securities
Corp., Boston, Mass. Offering—Indefinite.

.of

housing in Israel. Office—108 Achad Haam St., Tel
Aviv, Israel. Underwriter—Sakier & Co., Inc., New York.
Offering—Imminent.
■'V-.v':/'v///'",/1/•//■:
.

Bldg.,
Corp.,

•

•

Big G Corp. (5/27-31)
April 17, 1963 (*<Reg. A") $100,000 of 7% convertible
debentures due 1968, and 25,000 common shares to be
offered

in

units

of

one

$100

debenture

and

25

new

(max.

placer claims in Alaska. Proceeds—For general corporate
purposes. Office—E. 15 Walton Ave.,/'Spokane. Under¬

a

three

held.

Clark Cable Corp.
April 25, 1963 filed 121,915 common. Price—By amend¬
ment (max. $6). Business — Manufacture and develop¬
ment of electronic, electrical, and mechanical systems
and components; also wholesale distribution of electri¬
cal components.
Proceeds — For selling stockholders.
Office—3184 W. 32nd St., Cleveland. Underwriter—Ful¬
ton, Reid & Co., Inc., Cleveland.

Gold, Inc.
March 4, 1963 ("Reg/ A") 750,000 common. Price—20
cents. Business—Exploration and development of
gold
.

each

$26).

—Alex. Brown & Sons, Baltimore.

•

Bonanza

specializing in

for

to be offered
basis of two
Price—By amendment

Business—Writing of life, accident, health
disability insurance, and annuities. Proceeds—For
expansion. Office—444 Madison Ave., N. Y. Underwriter

—-

over-the-counter securities

shares

and

Proceeds—For inventory, expansion and debt repayment.
Office
550 5th Ave., New York. Underwriter — A. J.
Davis Co., Pittsburgh.

Life Insurance Co. of New York

March 26, 1963 filed 40,000 capital shares
for subscription by stockholders on the

shares.

per unit. Business—Operation of licensed
departments in department stores, selling clothing, rec¬
ords, pocketbooks, sporting goods, greeting cards, etc.

in

Citadel

(5/20-24)

Price—$287.50

....

common

chemicals

—

.v:

■

30,000

equipment, sales promotion and working capital. Office
N. La Salle St., Chicago.
Underwriter—Price In¬
vesting Co., New York. Note—This company formerly

185,000

to be sold by company and 69,975 by certain stock-,

1963 filed 84,303 of 8% cumulative preference
dividend participating shares. Price — $3.33 per share.
Business
A mortgage loan company. Proceeds — To
grant loans to immigrants and other persons in need

154,000 common, of which 125,000
offered by company and -29,000 by certain
stockholders. Price—By amendment (max. $7). Business
—Writing of ordinary life insurance. Proceeds—For in¬

and

pensing such chemicals.

April 9,

Annuity Life Insurance Co.

1973

Nov.

•

1963 filed

due

.

—221

—

common

of

growth

(max. $8.25),, Business—
subsidiaries and joint ventures, is
engaged in the general vending and food service busi¬
ness.. Proceeds
For acquisitions, debt repayment, and
other corporate purposes. Office — 2540 West Pennway,
Kansas City, Mo. Underwriters—Kidder, Peabody & Co.,
Inc., New York, and Barret, Fitch, North & Co., Inc.,
Kansas City.

named.

(6/10-14)
28, 1962 filed $150,000 of 6% subordinated income

common.

sub¬

Company, through

be

Chemair Corp.

offered in units consisting of one $10 debenture and two

holders. Price—By amendment

To

are

and expansion. Office ;— 411 North
Ave., Phoenix. Underwriter—None.

investment,

Central

par^ Business—A holding
insurance subsidiaries, 'Proceeds—For

and

For construction.

March 29, 1963 filed 500,000 class A common. Price—$2.
Business—A legal reserve insurance company. Proceeds

-

Price—At par.

subsidiaries conduct

Offer¬

Price—At

investment,

—

St., Springfield, 111. Underwriters

Probable
bidders:
Eastman
Dillon,
Securities
&
Co. - Equitable
Securities
Corp.
(jointly); Blyth & Co.-Kidder, Peabody & Co.-Merrill
Lynch, Pierce, Fenner & Smith Inc. (jointly); Halsey,
Stuart & Co. Inc.; Salomon Brothers & Hutzler;' First
Boston Corp.; Lehman Brothers - Bear, Stearns & Co.
(jointly). Bids—May 21 (10:30 a.m. CDST) at 20 No.
Wacker Dr. (21st floor), Chicago.
•

sidiaries. Office—112 California Ave., Reno, Nev. Under¬
writer—:None.
1

deben¬

E. Adams

debentures
conv.

(5/21)

Union

Dec.

1978.

Underwriter—June

—(Competitive).

Management Co.
due

in Oregon and Washington.
capital and surplus.
Office—

Portland, Oregon.

I, due May 1, 1993. Proceeds

Office—607

Co., Inc., New York. Offering—

28, 1963 filed $1,500,000 of 6%

bentures

Sixth,

Central Illinois Public Service Co.

series

1

Hutzler.

W.

S.

April 22, 1963 filed $10,000,000 of first mortgage bonds,

Expected in July.

amendment.

insurance
additional

S. Jones Co., Portland.

new

•

writer—S. Schramm &

life

and

Blancke, Linden, N. J. Un¬
Co., Inc., New York. Of¬

Salomon Brothers &

Co.

260,000 capital shares.
Price—By
$3). Business—Company is engaged

811

R. Boland &

and

(max.

writing

Proceeds—For

Atlantis International Corp.
April 30, 1963 filed 100,000 common. Price—$4. Business
—A real estate
development company. • Proceeds—For
debt repayment, property improvement, and
working
capital. Office—700 Park Ave., Piainfield, N. J. Under¬

Business—Mortgage
banking, real estate development, and sale of insurance.
Proceeds
For debt repayment, land
development, and
working capital. Office — 3756 Lamar Ave., Memphis,

April 24,

in

Insurance

1963 filed

6,

amendment

>

ing—Imminent.

Offering—Indefinite,

Price—By

March

Bldg., South Bend, Ind. Underwriters—Leh¬

Brothers

Life

Centennial

Proceeds—For general corporate purposes. Address—320 /
man

Underwriter—None.

Lake, Ind.

Proceeds

Associates Investment Co.

Associates

•'

**

Lake, Inc. Proceeds—To construct a sew¬
disposal system. Address—R.R. N. 3, Box 28, Cedar

age

April 24, 1963 filed $50,000,000 of debentures due May 1,
1984. Price—By amendment. Business—A sales finance
company which also makes personal installment loans
and provides the insurance incident to such
financing.

Mortgage & Development Co., Inc.
Jan. 28, 1963, filed $2,000,000 of 6% subordinated sink¬
ing fund debentures due 1973 (with warrants) and 100,000 common, to be offered in units of one $20 debenture
(with a warrant to purchase two shares) and one com¬
share.

W.

Corp.

around Cedar

fering—Indefinite.

Allied

mon

Office—1570

derwriter—John

Service

Public

Lake

20,1962 filed 9,964 common. Price—$100. Business
—Company - plans to qualify as a public utility yand
furnish
and
water
sewage
disposal .services in and

special¬
accident insurance.

Ampeg Co., Inc.
'
" >
*
:
Oct. 29, 1962 ("Reg. A") $294,000 7% conv. subord. de¬
bentures due 1972 and 29,400 common to be offered in
units of one $1,000 debenture and 100 shares.
Price—
$1,020 per unit. Business—Manufacture of amplifiers and

Fla.

equipment. , Proceeds—For general
Office—1068 S. Ocean Blvd., PomUnderwriter—None.

March

company

April 1, 1963 filed 200,000 common. Price—$5. Business
—Company owns and operates a chain of motor hotels,
apartment buildings and a shopping center. Proceeds—
For
loan repayment,
expansion
and other corporate
purposes. Office — 901 Fuhrmann Blvd., Buffalo, N. Y.

with

purposes.

Beach,

pano

Underwriter—American Pacific Management
(same address).

Corp.

them

corporate

Honolulu.

Airway Hotels, Inc.

management and consultant services to motels and

furnish

Price—Net asset value.

and

,

Services, Inc. •
^
14, 1962 filed $500,000 of 8% debentures due 1969.
Price—At
par
($1,000). Business—Company plans to

,

management

research and working, capi¬
Princeton, N. J. Under¬
>
/ ;

Address—Route 206 Center,

Castle Hospitality

.

v'v.S

'■/.V;

1963 ("Reg. A") 100,000 capital shares/ Price
Business—Co. plans to keep an electronic filing

18,

Dec.

investments.

Fund, Inc.

ISSUE

writer—Chase Securities Corp., N. Y.

Price—$18. Business—A mort¬

company.

REVISED

equipment, inventory,

tal.

(Office-r-300 St; Salisbury St;, Raleigh, N. C. Underwriter

"Effective

the caption

insurance

gage

those issues which became
this week and were offered pub¬

Registrations"
"effective

for each five shares held;:

but

dates.

not, in general,, firm offering

ITEMS

•

PREVIOUS

system of'skills for employment of members. Proceeds—
For

Mortgage Insurance Co.
10, 1963 filed 31,070 common to be offered for
subscription by stockholders'on the basis of one share

.

ADDITIONS

SINCE

.

—$3.

Jan.

and in the index, re¬

name,

flect the expectations of the underwriter

Thursday, May 16, 1963

.

.

Career-Ways Systems, Inc.
April

/. American

:

parenthesis alongside

-tion." Dates shown in

Registration

—

"Securities Now in Registra-

of this section

in

American Biltrite Rubber Co., Inc.
(5/27-31)
May 1, 1963 filed $5,000,000 of convertible subordinated
debentures due May 1,
1983.
Price — By amendment.
Business
Company produces a variety of rubber and.
vinyl products. Proceeds—For prepayment of loans. Of¬
fice—22 Willow St., Chelsea, Mass. Underwriter—Goldman, Sachs & Co., New York.
*/"'•
''.-V1
;./%/'

Registration statements filed with
SEC since the last issue of the "Chron¬

NOTE

.

* INDICATES

Now

Securities

Commercial and Financial Chronicle

writer—Duval Securities, Spokane.- Offering—Imminent.
Brown Engineerng Co., Inc. .(5/27-31)
May 2, 1963 filed 110,000 common, of which 50,000 will
be offered by company and 60,000
by stockholders. Price
r—By amendment (max-$28). Business—Company is en¬
gaged in engineering and manufacturing activities in
*

BOUGHT4 SOLD

QUOTED
for Banks, Brokers,. Institutions
-

support

ESTABLISHED

DIgby 4-2370

1942

York 6, N. Y.

;

Direct Wires
R. J. HENDERSON & CO.,

research

operating

.

1

>

/

*

TWX: 212-571-0320
to

Canaveral Hills Enterprises, Inc. (6/3-7)
May 10, 1962 filed i00,000 common.; Price—$5. Business
—Company was formed to own and operate a country
:

'i.

club and

golf course, swimming pool and -cabana cluby
Cape Canaveral, „Fla., and develop real estate,
erect homes, apartment
houses, motels, etc. Proceeds—
near

Mining Co.

filed 200,000

common.

Price—$1.

Busi¬

exploration and
Office—Creede, Colo. Underwriter

mining.

expenses.

Commercial.Life

Nov.

Proceeds—For

Insurance

Co. ot Missouri

("Reg*,A")>46,000 common to be offered
for subscription by stockholders on the basis of one share
for each 3;36 common share? held. Price—At-the-market.
Business—Sale of health, accident, life and hospital in¬
surance.
Proceeds—For working capital;
Office—3570
Lindell. Blvd., St. Louis. .Underwriter—Edward D. Jones
& Co., St. Louis. Offering—Indefinite.1
/
: :
1 '
26, 1962

.

Common

For debt repayment and
expansion./Office—309

Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &
Co., Inc., New York.

1962

—None.

and

•

•

INC., Los Angeles
WOODCOCK, MOYER, FRICKE & FRENCH, INC., Philadelphia




the

20,

ness—General

development phases of
space vehicle programs. Proceeds—For working capital.
-Office—300 Sparkman Dr., N;
W., Huntsville, Ala. Un¬
derwriter—Goodbody & Co., New York.

Members of Neiv York Security Dealers Association
39 Broadway, New

of

Colorado Imperial

Sept.

.

Market

Fund,

Inci*
March 7, 1963 filed 2,000,000 capital shares. Price—Net
asset value plus 8.5%. Business—-A new mutual fund
specializing in securities of. foreign and American com-

Volume

operating

panies

Proceeds—For

in

,

6264

Number

197

.

.

Wilshire

Office—9465

investment.

Market.

Common

European

the

The Commercial and Financial Chronicle

.

Blvd.,

Beverly Hills, Calif. Underwriter—Kennedy, Cabot
Co. (same address). Offering—Expected in June.

Community Health Associations,
April
are
v

1963 filed 150,000

12,

to

offered

be

by

Inc.

50,0C0

and

100,000

of which

common,

company

&

Harry E.

by

Wilson, President,- Price—$15. Business—Sale of hospital
and surgical insurance contracts. Proceeds—For invest¬
ment, sales promotion, and other corporate purposes.
Office—4000 Aurora Ave., Seattle,

Wash. Underwriter—

None.

^Consolidated

(2029)

Vending Corp.

«

Consolidated Leasing Corp. of America

repayment, working capital and other corporate purposes.
Office—129 S. State St., Dover, Del. Underwriter—To be
named. Note—This registration will be withdrawn.

Proceeds—For

•

Consultant's Mutual Investment,

(5/20-24)

Inc.

/'

•

Dec. 21,

lb62 filed 500,000 common. Price—$10. (For an
period the fund will also offer its shares in ex¬
change for acceptable securities on the basis of one
initial

share for each $10

(5/22)

—211

market value of securities). Business

1978

(with warrants); also'75,000 units, each consisting
convertible preferred and one share
of common. Price—By amendment. Business-1—Leasing of

of two shares of 7%

and equipment. Proceeds—For debt repay¬

cars; trucks

,

-

ment, and other corporate purposes. Office—1012 Baltimore Ave., Kansas City, Mo. Underwriters—A. C. Allyn
& Co.,

Chicago and Walston & Co., New York.

investment. Office,

Oil & Gas,

Inc.

28, 1963 filed $2,432,500 of 6% sinking fund deben¬
due 1975 (with warrants) to be offered for sub¬

tures

the basis of $500

scription by common stockholders on
of

for

debentures

Broad

each

held

shares

500

of

May

record

8.

Rights will expire about June 8. Price—At par. Busi¬
ness—Company is engaged in the acquisition of oil and
gas leaseholds. Proceeds—For note repayment and work¬

ing capital. Address

4150 East Mexico Ave., Denver.

—

Underwriter—None.

•

—An

Resources Corp.

facilities.

insurance

holding

Proceeds—For invest¬

company.

ment. Office—420 Madison

Ave., New York. Underwriter

—None.

May 17

<

1
& Co.)

61,627 shares

Feb.

estate

development

••••-

(Gerstley,

Riehter

Union

C.

Southern Union

7

,

(Consolidated

,

.

Globe

Securities

(Drexel

Pictronics,
■..

&

Co.)

Allyn

&

(G.

K.

Shields

&

$300,000

Co.)

Industries, Inc.___7

Sternco

Industries,

(Oppenheimer &

Servomation

United

(Hemphill,-

Illinois
(Bids

&

&

Bonds

of)_—
Freres

Lazard

and

&

Co.)

.—Common

Corp

Lynch,

Pierce,

&

Fenner

Smith1 Inc.)

Great Northern Ry
(Bids

(S. V.)

scares

150.000

Equip. Trust Ctfs.

12

EDST)

noon

$6,600,000

Units

& Sons

(Bateman, Eichler

& Co.)

Securities

of

Corp.

June 3

(A.

Leasing

Allyn

C.

&

Co.,

810,000,000

(A.

Allyn

C.

&

Co.)

&

&

11

11:30

i*

C.

Allyn

Co.)

&

(Willis

F.

&

Hutton

Southern'California
(Bids

shares

...Common

Common
..Common

Co

(Bids

$100,000

Co.)

Co.

&

&

11

Williston

R.

Co.)

>

&

12

Ackerman

(Alex.

Red

Co.,

Arthurs,

and

Rona

Lee

&

(White,

Pennsylvania

Weld

Rona

Lee

&

Sons)

17

Big G

&

June

11

Co.,

& Co.)

Davis

Engineering
(Goodbody

1,000

Co.)

(Kidder,

18

Co.)

(Offering

Lunar

to

Co

shares

Inc..,—Common

235,000

Inc.—

Missouri Pacific

Lestrange

National

Corp

33,383

Inc.)

Co.,

Common

Bonds

EDST)

$9,000,000

&

...Common

Co.)

267,740

11

EDST)

a.m.

shares

Bonds

$40,000,000

June 24

(Monday)

Norfolk & Western Ry
(Bids

June 25

12

Equip. Trust Ctfs.

&

to

Union

.Bonds

received)

$40,000,000

(Wednesday)

Light, Heat & Power Co

July 9

11

a.m.

EDST)

Bonds

$6,500,000

(Thursday)
Co.)

&

.Common

$900,000

(Tuesday)
(Bids

be

to

Bonds

.

received)

$50,000,000

shares

240,000 shares

July 10 (Wednesday)
Northern

Illinois Gas Co
(Bids

to

be

Bonds

received)

$20,000,000

shares

$250,000

Inc.)

Co

Gas

be

Illinois Bell Telephone Co..

.

July 17
Sierra

.Debentures

Co.,

$4,300,000

(Tuesday)

(Peter Morgan

Debentures

Furman

EDST)

noon

California

June 27

Common

50,000

Inc.)

12

$1,000,000

4

(Wednesday)

Pacific Power Co..

(Offering

to

stockholders—no

.Common
underwriting)

Sierra Pacific Power Co.

Eauip. Trust Ctfs.

noon

$8,100,000

EDST)

be

to

172.340

shares

Debentures

:

received)

$8,000,000

August 6

(Tuesday)
Electric Co

Indiana & Michigan

F.

L.

Equip. Trust Ctfs.

RR

June 10
Chemair

12

noon

CDST); $3,540,000

Enzyme Corp. of America

PUtnam

Common

—

Common

(Bristol

(Paine,

.

Bond*

$45,000,000

Securities

$180,000
___■

Inc.)

r

Webber,

Key Training

Jackson & Curtis)

Service, Inc.—

(Seymour Blauner Co.

and Shelton

(Thursday)

Columbia Gas System, Inc

October

-Units

Corp.—

Wisconsin

8

.Debentures
$25,000,000

(Tuesday)
Service

Public
(Bids

to

be

..Bonds

Corp.J

received)

$15)000,000

.Common

$240,000

,

First American Israel Mutual Fund...____Ben. Int.
:

be received)

(Bids to be received)

(Monday)

Electronics

(Price Investing Co.)

Common

(Herbert Young & Co., Inc.) $376,000




Common

shares

Natural Gas & Oil Producing Co

•

(Ingram, Lambert.& Stephen, Inc.) $718,750

Mil

250,000

(Wednesday)

shares

—

stockholders—-underwritten by
& Co., Inc.) $499,988.75

Films,

June 5

(Bids

Common

110.000

Feabody & Co., Inc.)

Gas

Com.

150,000 shares

(Tuesday)

October 3

Units

Co., Inc
&

Debentures'/.

$20,000,000

Co

(Tuesday)

units

Edgerton, Germeshausen & Grier,
Greenwich

Debens.

Inc
$5,000,000
—

(A., J.

Co.)

a.m.

Witter

<Bids

4

V

(Monday)

June 26

$1,700,000

•

Corp..

G.

.

$2,700,000

Corp

•

Brown

Sachs

Inc

Express Co., Inc

Common

(Reuben Rose & Co.,

(Bids

Rubber

(Goldman,

Co.,
EDST I

&

Power

(Bids

Heritage Equity Corp.)

Inc.; and
$420,000

Corp
Rose

:

(Offering to stockholders of Pacific Telephone & Telegraph
Co.—No underwriting) 13,013,969 shares

Southern

Co.;

—Common

(Reuben

•

Common

_

Heather,. Inc

Brown

Common
$1,050,000

Pacific Northwest Bell Telephone Co;

(Bids

Kap, Inc

(Monday)
Biltrite

Inc.)

Debentures
Beane)

(Merrill Lynch, Pierce, Fenner & Smith Inc.)

shares

—Bonds

&

Howell &

shares

$5,000,000

(Wednesday)

100,000 shares

—

..

Peterson,

Co.)

Capital Cities Broadcasting Corp.—.

(Bids

200,000 shares

Redpath

&
Co.)

&

Public Service Electric & Gas Co

Capital Stock
&

2C0.000

Shipbuilding-Federal Barge, Inc.

(Dean

Debentures
Scherck, Riehter
Inc.) $3,750,000

& Co.,

J.

Co.)

Debentures

Securities

a.m.

(Bids to

American

&

$500,000

Inc.)

Southern Pacific Co..

May 27

Union

Telephone

-Bids

Travelers

..Common

Inc.—

Co.,

Inc.;

Co.,

and

Parker

(Alester

EDST)

Common

Securities

(Tuesday)1

Bell

■

Inc

&

$3.15,000

254,975 shares

Inc.)

Optech, Inc.

Equip. Trust Ctfs.

noon

Union

Dillon,

11

June

Enterprises,

Sullivan

$60,000,000

RR

12

Inc.)

Corp

(J. Herbert) Enterprises, Inc

June

Burnside

E.

(Auchincloss,

r

(Thursday)

New York Central

Dillon,

30

page

Common
Securities,

Coke

(Bids

Inc.—,-—-Common

Stephenson Finance Co., Inc

May 23

&

225,720 shares

Mountain States Telephone & Telegraph Co.—Cap.
•(Offering to stockholders—no underwriting)
4,037,432 shares

shares

Co

PDST)

a.m.

Co.)7100,000

&

(Nemrava

(Stone,

-Common

72,455

Inc.)

Co.,

Edison

8:30

..Common

America

of

&

Dempsey-Tegeler

shares

Co

300,000

National Fidelity Life Insurance
(E.

$200,000

Systems,

International,

Gem

EDST)

:
150,000

Wteeks)

Missouri Fidelity Life Insurance
(A.

a.m.

Coal

on

Shoes/ Inc

June

and

Commonwealth Telephone Co.
..Common
(Offering to stockholders—underwritten by
Eastman Dillon, Union Securities & Co.) 71,460 shares

;

Products, Inc
&

Inc.)

;

Co.,

Hills

Canaveral

Cjhflrpc

OQd

Co.;

....Common

&

—Common

—_

stockholders—bids

(Hornblower

Co.

Allyn

units

$6,000,000

EDST)

a.m.

Co

Power
to

Units

75,000

Co.)

Continued

;

shares

110,000

Co.,

Un¬

Imminent.

Life Assurance Co. of Pennsylvania—Capital Stock

Bonds

1 79

Maradel

Walston

&

Corp.)

Holiday Mobile Home Resorts, Inc

$2,500,000

Co

(Bids

(Offering

and

Co.,

Power

Interstate

C.

&

advertising,

space,

Office—42 Broadway, N. Y.

derwriter—A. J. Gabriel Co., Inc., New York. Offering-

Peabody & Co., Inc. and Barret, Fitch, North

of America—Debens.

Walston

Consolidated Leasing Corp. of America
Interstate

Sachs

Goldman,

Investors Trading Co

Corp.

and

equipment, leasing of working
working capital.

Indiana

Debentures

&

(Boettcher

Consolidated

For

(Reinholdt & Gardner))

Securities

Service

iKidder,

Ben. Int.

Tr

America)

Price—$3.

common.

and

$300,000

(Monday)

(Bosworth,

(Wednesday)

May 22

•

-

..Tommon

—

Inc.)

Automatique, Inc

$1,500,000

Southeastern Mortgage Investors
(Fleetwood

Harriman
$15,000,000 •

.

,

67,000

a lightweight structural board
material (wallboard). Proceeds—

insulating

June

(Thursday)

Jim's

Kuhn, Loeb & Co., Inc.;

Co., Inc.;

A")

(First Alabama Securities,

...—.......Common

Printing Co

May 3D

-Bonds

$10,000,000

CDST)

("Reg.

Common

8375,000

Inc.-.

Stephen,

Inc.;

Co.,

Insurance
(A.

Lord

Co._

Service

a.m.

Inc.)

Co.,

&

(Keon

Public

Inc.,

Co.,

Cosmodyne

Hunsaker

shares

215,000

Office—8397 N. E.

Resources, Inc.

1963

sheet

Orr

Preferred
Co

(White, Weld & Co. and Watling, Lerchen & Co.)

....Common

...

Co.)

Corp.

I .'

;

$400,000

Corp

10:30

(Smith, Barney &
Ripley

Co.)

16,

(Eastman

Inc,

•

Safran

Debentures

Noyes

(City

Copenhagen

(Merrill

shares

25,000

Co.)

&

&

Webster

&

(Tuesday)

May 21
Central

Poulsen

Inc

(Oppenheimer

■

gen¬

Miami, Fla. Underwriter—None.

Diversified
Jan.

,

:

Exchange,

(Alessandrini

Class A

...

Collateral

Proceeds—For investment.

company.

(Tuesday)

Common

Sternco

$5,000,000

Assurance

&

Brown

Lambert

Weld

Stone

Freoplex,

Inc_
-

.

J.

Camera

(White,

shares

a

June

50.000. shares

Co.)

Dow Jones & Co., Inc

Common

1

oxide, and to establish and equip

capital,,
construction, equipment and other corporate purposes.
Office—360 Lexington Ave., N. Y. Underwriter—None.

St. Louis

$1,500,000.

Corp.)

200,000

deuterium

eral research laboratory. Proceeds—For working

Maust Coal & Coke Corp

Debentures

Allyn & Co.)

National

(Ingram,

,

May 28

'

'

public, $22.25. Business—Com¬
a small size production and experi¬
plant for the limited manufacture of deuterium

(Eastman

Co.) S150.000

Gas Co

C.

(K.

United
;

$5,000,000

Security Systems, Inc

and

time, the

same

to the public. Price—•

plans to erect

mental

(S^rathmore

Inc.---Common
-Common

pany

Maust

Common

—

Co

Gas

(A.

Capi'a". Stock

Co.)

ing subordinated debentures held. At the

shares

14.080

Co. )

Industries, Inc

F. Rothsch.id

Florida Jai Alai, Inc

units for each $1,200 face amount of non-interest bear¬

Leeds

i_.:_..—Common

Inc

Drugs,

Southern

.

Investments,
&

Company

primarily in commercial, light industrial
and apartment
properties. Proceeds—For debt repay¬
ment, and other corporate purposes. Office—1710 Chap¬
man Ave., Rockville.
Md. Underwriter — Ferris & Co..
Washington, D. C. Offering—Imminent.

Underwriters

Sunstein

ownership.

and

-

Mutual

basis of 3 units for each 5% prior preferred share held,
2 units for each 5%
preferred A stock- held- and 43

and

deal

(A.

Consultant's

Corp.

150,000 common. Price—$10. Business

1963 filed

1,

(Scherck,

.

Corp.

Business—Manufacture of
Dairac Real Estate Investment

Farkview

(Offering to stockholders—underwritten by Alex. Eroan & Sonsi
.' •
40,000 shares

Office—143

Second Ave.,

cold liquids. Proceeds—For loan
repayment, and working capital. Office—3232 W. El
Segundo Blvd., Hawthorne, Calif. Underwriter—Merrill
Lynch, Pierce, Fenner & Smith Inc., New York.

__CIass A

Citadel Life Ins. Co. of New York

purposes.

and transporting super

(Monday)

May 20

Deuterium

corporate

Mineola, N. Y. Underwriter—None.

Sept. 28, 1962 filed 120,000 common with attached war¬
rants to purchase an additional 120,000 shares to be ofered for subscription by holders of its stock and deben¬
tures in units (of one share and one warrant) on the

Diversified

(Costello. Russotto &

Corp.

general

Old Country Rd.,

13, 1962 filed 77,050 common. Price—By amend¬
ment (max. $11.75-). Business—A real estate investment

Recreation

lo'-ltin.g to stockholders—underwritten by L.

—-

April 1, 1963 filed 150,000 common. Price—By amend¬
ment (max. $18). Business—Design, development and
manufacture of equipment used for pumping, storing

(Friday)

:

—

(5/21)

Cosmodyne Corp.

ness

Co.

1963 filed 100,000 common. Price—$12.50. Busi¬
Company plans to write automobile insurance.

company will offer the securities
To subscribers, $20; to

Smith, Barney & .Co!, Inc.;
Kuhn, Loeb & Co., Inc.; Harriman Ripley & Co., Inc.,
and Lazard Freres & Co., New York.

^■NEW-iSSSUE CALENDAR
Pall

Underwriters

plans to

1963 filed 79,700 common. Price—$6. Business

*

•

(5/21)

(City of)

Copenhagen

—Real

Consolidated
March 29,

Underwriter—Gerst-

Philadelphia.

St.,

April 24, 1963 filed $15,000,000 of sinking, fund external1
loan bonds due May 15, 1978. Price — By amendment.
Proceedsr-For additions and improvement to the City's

•

Consolidated
Feb.

S.

ley, Sunstein & Co;, Philadelphia;1

.

April 11, 1963 refiled $2,500,000 of 6V2 % debentures due

Insurance

Jan. 30,

—A new mutual fund. Proceeds—For
•

Defenders

April 2,1962 filed 70,000 common. Price—$5.75. Business
—Operation of vending machines. Proceeds—For debt,

29

27,500,000 shares

Common
Securities Co.) $308,750

November 7
(Thursday)
Georgia Power Co
(Bids

to

be

received)

—

(Bids

to

Bonds

$30,000,000

Preferred

Georgia Power Co
be

received)

$7,000,000

J

1

30

(2030)

The Commercial and Financial Chronicle

Continued from page

—62 Richmond

29

&

Lime & Stone Co.

Dixie

granite, lime rock, and agricultural limestone.
loan repayment, and
working capital.

&

Main

Co., Atlanta,

St., Ocala, Fla.

Ga. Note

—

Underwriter—Courts

This

registration

will

St., Boston. Underwriter—Paine,
Curtis, Boston.

be

'withdrawn.
Doman

Fiori

Helicopters, Inc.

Business—Research, development and construc¬
experimental helicopters. Proceeds — To obtain
certification of models, train service personnel, repay
$1.25).

Note—The

SEC

has

issued

June

26, 1962 filed 150,000 common, of which 50,000 are
be offered by the company and 100,000 by stock¬

Forst

holders.

Price—By amendment (max. $12). Business—
Design and manufacture of boys knit shirts, sweaters,

Inc.

•

May

"Canadian

Jones

Dow

Service."

News

Proceeds

For

—

selling stockholders. Office—44 Broad St., New York.
Underwriters—White, Weld & Co., Inc.; Goldman, Sachs
& Co., and Stone & Webster Securities Corp., New York.
Duro-Test

Corp.
Dec 6, 1962 filed 150,000 common. Price—By amendment
{max. $9). Business — Manufacture of various types of
lights for industrial and commercial use. Proceeds—For
the selling stockholder. Office — 2321 Hudson Blvd.,
North Bergen, N. J. Underwriter—Auchincloss, Parker
& Redpath, New York. Offering—Indefinitely postponed.

ness—Manufacture

of

electronic

for

devices

electro-mechanical

medical

and

Busi¬

Price—$1

vehicles

marine

and

purposes.

Proceeds—For

working capita}, equipment and debt re¬
Office—2222 S. Centinela Ave., Los Angeles.

payment.

Underwriter—None.

Edgerton, Germeshausen & Grier, Inc. (5/27-31)
2, 1963 filed 235,000 common. Price—By amend¬
ment (max. $18). Business :— Company specializes in
measuring, controlling and utilizing high speed electronic and nuclear phenomena. Proceeds —For selling
stockholders. Office—160 Brookline Ave., Boston. Un¬
derwriter—Kidder, Peabody & Co., Inc., New York.
May

'

*

Price—$2.

Business

landale, Fla. Underwriter
registration

Geigt.er Pipe Supply Inc.
Sept. 28, 1962 filed 60,000 class A

Hill

par.

nia

—

This

common to

the

on

be

offered for sub¬

basis of

one

new

share

or

Centers, Inc.

10,000 by

Business—Sale

of

Price—$3.

of

for

Califor¬

Business—A

investment

company.
Proceeds—For in¬
S. Hill St., Los Angeles. Under-

Hollingsworth Sofderiess Terminal Co.

Feb^ 27, 1962 ("Reg. A")

75,000

■/

Price

common

—

$4.

Business—Manufacture, sale and development of solder'ess terminals and other wire
terminating products. Pro¬
ceeds—For debt

repayment,

working capital.
Pa.
1

equipment, advertising and

Address—P

UnderwriterT—Harrison

ing—Temporarily

O.

&

Box

430

Phoenixville,

Co., Philadelphia.

postponed

Offer¬

/

'V y<: •
Homestead Packers, Inc.
March 13,. 1963 filed 5,000 shares of
6% .non-cumulative1
preferred stock, and 5,000 common, to be offered for sale
■

.

,

in

Price—$3

common.

offered

—

Corp.
65,000

be

Union Bank

Underwriters—Boettcher & Co., Denver, and J. R. Wil¬
liston 8c Beane, New York.
J
;
y

(6/3-7)

—

of

share-for-share basis,

a

to

common

•

pipes

May 1, 1963 filed $3,750,000 of subordinated convertible
1, 1979. Price—At par. Business—
Company operates a chain of 32 closed-door member¬
ship department stores: Proceeds—For loan
repayment,
expansion and working capital. Office
10824 Page
Blvd., St. Louis, Mo. Underwriters—Bosworth, Sullivan
& Co., Inc.,
Denver; Scherck, Richter Co., and DempseyTegeler & Co., Inc., St.-Louis.
7/
y-*-.
•
A")

on

Holiday Mobile Home Resorts, Inc. (6/3-7)
March 27, 1963 filed
$1,250,000 of 6V2% conv. subord. de¬
bentures due 1978, and
75,000 common to be offered in
units consisting of $50 of debentures
and 3 shares. Price
—$68 per unit.
Business—Development and operation of
mobile home resorts
throughout U. S. Proceeds—For
debt repayment,
construction, and other corporate pur¬
poses. Office
4344 East Indian School
Rd., Phoenix.

stock¬

steel

Co.

Office—760
wrter—None.

debentures due May

("Reg.

Note

v

vestment.

of which 50,

common,

by company and

International, Inc.

Design

a

Address—Hal¬

y.yy ,/
Street

management

fittings. Proceeds—For inventory. Office—
4124 N. Broadway, St. Louis.
Underwriter—Midland Se
curities Co., Inc., Kansas
City, Mo. Offering—Indefinite.

1962

Proceeds—For

named.

withdrawn.

was

Oct. 16, 1961 filed
2,265,138
subscription by stockholders

Under¬

valves and

25,

be

—

Offering—Temporarily postponed.

April

To

—

Business—Extraction,

sand.

purposes

drawn.

convertible sub¬

Office—1180 Raymond Blvd.,
Newark, N. J.
Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.

Gem

corporate

7, 1962 filed 125,000 common.
Price—By amend¬
(max. $5). Business—Operation of discount
stores.
Proceeds—For inventory,
expansion, debt repayment and
working capital.
Office—6400 MacCorkie
Ave., S. W.,
St.
Albans.
W.
Va
Underwriter—WillarH
Securities,
Inc., New York. Note
This registration will be with¬

investment.

Price—$9.50.

other

and

and

ment

(5/28)

be offered

plan 1

lew

June

Garden State Small Business Investment Co.
Oct. 27, 1961 filed 330,000 common.
Price—$3. Business
—A small business investment
company. Proceeds—For

to

unit.

per

processing and sale of .rock

Heck's Discount

Brunswick, N. J.
writer—Alessandrini & Co., Inc., New York.

are

$10 debenture, 8 common shares and

a

Price—$18

preferred shares held. Price—By
amendment,, (max. $30).
Business—Company supplies
natural and manufactured
gas in Hartford County, Conn.
Proceeds—For loan
repayment, and construction. Office
—233 Pearl St., Hartford.
Underwriter—None.
V

Business—Operation of retail meat supermarkets. Pro¬
ceeds—For debt repayment and
working capital. Address
—Route 18, Tices Lane, East

holders.

consisting of

warrant.

for each six common

Co., New York. Offering—Indefinite.

Freoplex, Inc.

General

Dispenser Corp.
29, 1963, filea o0,00U common.

au, 1962 filed $250,000 of 6% subordinated deben¬
due 1977, 200,000 common and
6-year warrants to
purchase 25,000 common at $1 per share to be
offered in

Inc.

1, 1975. Price—At

Electronic

Jan.

& Sons,

Jan. 2, 1963 ("Reg. A") $200,000 of 7%
ordinated debentures due March

000

Dynapower Systems Corp.
Sept. 28, 1962 filed 750,000 common.

(Alex)

Donnell &

(5/28)

1, 1963 filed 110,000 common. Price—By amend¬
ment (max. $120). Business—Publishers of "The Wall
Street Journal," "Barron's" and "The National Observer."
Co. also operates the "Dow Jones News Service," and the

(5/20-24)
300,000 common.

March 23, 1962 filed 125,000 common.
Price—By amend¬
(max. $15).
Business—Wholesale distribution on
toys and games. Proceeds—For selling stockholders. Of
fice—2885 Jerome Ave., Bronx, N. Y. Underwriter—Mc

pajamas. Proceeds—For working capital. Office—
1115 Broadway, N. Y.
Underwriter—Goodbody & Co.,
"New York.
Offering—Indefinitely postponed.
& Co.,

.viaicn

tures

April 5, 1963 filed 80,000
scription by stockholders

Inc.

&

Hallandale Rock & Sand Co.

Hartford Gas Co.

ment

.and

Dow Jones

•

jne

Duilding improvements, working capital
Office—Ferr
Park, Fla. Underwriter—Consolidated Securities
Corp.,
Pompano Beach, Fla.
;,.yy •
'■
.Y

Donmoor-lsaacson, Inc.
Feb.

to

Alai,

Thursday, May 16, 1963

.

Ave., Greenwich, Conn. Underwriter—F. L. Putnam
Co., Inc., Boston.

anits

1962 filed
Price—$5. BusiOperation of Jai Alai games and pan-inutut
Proceeds—For rent, purchase of leased quarters

—

oetting.

suspending this registration statement;

order

Jai

28,

aess

stop

a

&

Investment Co.

Florida

Address—Municipal Airport, Danbury, Conn.

Underwriter—None.

Jackson

.

—Distribution of gas, and gas appliances in
Greenwich.
Proceeds—For loan repayment. Office—33
Greenwich

Campbell Ave., Phoenix. Underwriter—None.

of

<iebt, etc.

Webber,

March 27, 1963 filed 400,000 capital shares.
Price—$1.50.
Business—A real estate development
company. Proceeds
—For debt
repayment, construction, purchase of prop¬
erty, and other corporate purposes. Office — 700 West

19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held. Price—By amendment (max.
April

tion

First American Israel

Aug.

Proceeds—For
Office—11 N.

Underwriter—G. V. Kirby

Mutual Fund (6/10-14)
15, 1962 filed 2,750,000 shares of beneficial in¬
terest. Price—$10. Business—A mutual fund
which plans
to invest primarily in
equity type securities of Israeli
companies. Proceeds—For investment. Office—141 Milk

Sept. 27, 1962 filed 100,000 common. Price—By amend¬
(max. $6.75).
Business—Mining and processing

ment

of crushed

St., Toronto.

Associates, Ltd., Toronto.

•

.

units of

—$150

one

common

and

one

preferred share. Price

—Manufacture of the SAFER Butter Chipping machine,
and processing of tray-forming and chip-covering mate¬

Business—Design and development of

rials.

equipment and working capital. Office—1252 W. Peachtree St., N. W.,
Atlanta, Ga. Underwriter
Robert M
Harris & Co., Inc.,
Philadelphia. Note—The SEC has is

dress—Beatrice, Nebr. Underwriter—None.

sued

Feb.

Proceeds—For operating

expenses,

equipment, in¬

ventory and advertising. Office—118 E. 28th St.. New
York. Underwriter
L. D. Brown & Co., New York. Of¬
—

fering—Indefinite.

Enzyme Corp. of America (6/10-14)
21, 1963, filed 120,000 common. Price—$2. Business
—Company plans to market a new drug known as
"Clinizyne" to be used for treatment of a variety of
Feb.

tumor

related

diseases.

Proceeds—For

equipment, sales

promotion, research and development, and working
ital.

Office—727 Land

Title Bldg., Philadelphia.
Securities Inc., New York.

writer—Bristol

Equality Plastics, Inc.
April 4, 1963 ("Reg. A") 79,995, common.
Business

cap¬

Under¬

Price—$3.75.

—

Fifth Ave., New York. Underwriter—J. J.
Krieger & Co.,
Inc., New York.

Equity Funding Corp. of America

Marcn

Zm,

1962

filed

240.UU0

common

.ment

(max

•firms

selling life insurance and

.—For

$6.50)sale?

new

working
eolnr,

capital.

Business—A

offices,

waukee.

mutual

advances

Office—5150

T'rrioMrritpf

Price—By amend
holding company foi
to

Wilshire

funds

Proceed?

subsidiaries

Blvd.,

^r'«^nnc:ip-Continental

Los

and

An

Inr /, Mil

Offering—Indefinite.

Farmers'

April

1,

1963

filed

economic

bers.

and

Proceeds

—

educational
For

debt

betterment

of

its

mem¬

repayment, working capital
Office—1575 Sherman St.,

and

advances to subsidiaries.
Denver. Underwriter—None.
,

$15Y

a

17 500

pre

shareholdor

t'

PrW

Business—Design

and

manufacture of tools, dies, molds, beryllium canine* and
the distribution of
plastic, metal and glass product;? for
borne use. Proceeds—For a recession
offer

ers

and

Pratt

reduction

Ave:.

of

Chicago

to

sto^khold

accounts

payable
Office—36on
Underwriter—None

w

Fidelity Mining Investments Ltd.
Nov.

30

ment.

erties.

1961

filed

800.000

oeams

Construction Devices,
1962

Proceeds—For general

filed

100,000

in

used

construction.

Cohu

&

Stetson

and

Busi

Estate

Investment Trust
of beneficial interest.

be

named.
Note—This firm formerly was
Continental Real Estate Investment Trust.

known

Business—Acqui¬

development of real

corporate

purposes.

estate.

Proceeds

Office—811

For

—

duPont

Plaza

Center, Miami, Fla. Underwriter—None.
Greater Nebraska
Corp.
Feb. 20, 1963, filed
3,000,000

/

.

common.

.

»

Price—$2.

Busi¬

corporate purposes. Office—1107 Federal Securities

and

Price—By amend¬
testing of mining prop¬

corporate purposes.

Office

Bros.,

April 25. 1962 filed
to

be

Inc.

,

150,000 common, of which 50.000

>r
arp

offered

by company and 100.000 by stockholders
price—By„amendment (max. $7). Business—Wholesale

and

retail

equipment.
and

N.

distribution of toys, hobby lines and
Proceeds—For debt
repayment, ;

sporting

inventory

working

Y

capital. Office—35 Engel St.. "Hicksville
Underwriter—J. R. Williston & Beane. New-York

Offering—Indefinite.

address).
• Hunsaker
(S. V.) & Sons (5/21)
April 19, 1963 refiled $1,500,000 of 6V2%
convertible sub¬
ordinated debentures due
May 1, 1978, and 150,000 com¬

29,

1963

subscription
share

for

by

each

filed

(5/27-31)

37.735

stockholders
5.6

-

mon shares to be
offered in units of one $50 debenture
and five shares.
Price—$50 per unit. Business—Construc¬
tion of homes and
apartment buildings on land which
the company has
acquired in Southern California; Pro¬
ceeds — For debt
repayment and other corporate pur¬
poses. Office—15855 Edna PL.

Irwindale, Calif. Under¬
Eichler & Co., Los Angeles. •
Equity
:

writer—Bateman,
Interstate
*4ai''h 30.

-

.

1962 filed 1.605.100 shares
of beneficial interest.
$10). Business—A real estate
investment

Price—(max
•omoanv

v

v

Proceeds—For investment. Office—450
Seventh
Underwriter—Van A1styne„Noel &
Co., N. Y.

Offering—Indefinite
•

Interstate Power
Co.;(5/22)
21, 1963 filed 132.294 common to be
offered for
subscription by stockholders on the basis of one
new

March
'share

"TiU

for

each

exoire

26

.Tune

held
7.

of

record

May

22.

shares

common,
on

held.

the

/
to

be

basis

of

one

for
new

Priced—$13.25. Business

Rights

(max.

construction.

$24).
Office

Underwriters—(Com¬

petitive). Probable bidders:
Kidder, Peabody & Co.:
Merrill Lynch,
Pierce; Fenner & Smith Inc.;
Ladenburg,
Thalmann & Co.;
White, Weld & Co. Bids—May 22
(11:30 a.m. EDST) at One
Chase Manhattan Plaza
(24th
Floor), New York.•
*
•

Interstate Power Co.

(5/22)
^
:
21, 1963 filed $6,000,000 of first
mortgage bonds
1993.^ Proceeds—For loan repayment and construc¬
Office—1000 Main St.,
Dubuque, Iowa,
Under¬

March
due
tion.

writers

—-

(Competitive.)

Probable

Lynch,

bidders:

Pierce, .-. Fenner & Smith
Inc.-Kidder,
&
Co.
(jointly); Halsey. Stuart & Co.
Inc.;
Brothers 8c Hutzler;
White, Weld 8c Co.

Merrill

Peabody
Salomon

Bids—May 22

flooia)'mNewDYOTkat ^ ChaS6 Manhattan

/

offered

1963.

Price—By amendment

,

Greenwich Gas Co.

March

"

general corporate pur¬
Office—216 E. Monroe St.,
Springfield, 111. Under¬
writer—Horace Mann Investors Tnc.. (same

Proceeds—For loan repayment and
"—1000 Main St.,
Dubuque, Iowa.

ness—Company plans to operate subsidiaries in the fields
of banking, insurance,
finance, etc. Proceeds—For gen¬
eral

/

poses.

wo

Greater Miami Industrial Park, Inc.
Feb. 25, 1963, filed 136,094 common to be
offered for
subscription by stockholders on the basis of one share
for each 4xk shares held.
Price—$5.50.
and

Insurance Co.

health insurance. Proceeds—For

supports anc

Aug. 3, 1961 filed 300,000 shares
Price—$10. Business—Real estate. Proceeds—For invest¬
ment. Office—530 St. Paul
PL, Baltimore. Underwriter
as

Mann Life

—

Price—$10.

Globe

—To

construction, equipment, and working capital. Ad¬

a

1, 1963 filed 200,000 common, of which
80,000 are
to be offered
by company and ,120,000 by stockholders.
Price
$12.50. Business—Writing of life, accident and

Proceeds—For debt repay¬
and inventory.
Office—545
J.
Underwriters—Winslow

Real

to construct
beef and pork packing plant. Proceeds—

operate

Horace

f

Laird, Bissell & Meeds, N. Y,

Continental

Business—Company plans

For

repayment

Security Systems, Inc. (5/20-24)
April 17, 1963 filed 200,000 common.
Price—By amend¬
ment (max.
$13.75). Business—Furnishing of uniformed
guards, plant protection and investigatory services. Pro¬
ceeds—For selling stockholders.
Office—2011 Walnut St.,
Philadelphia. Underwriter—Drexel 8c Co.,
Philadelphia.
Great

unit.

per

and

Inc.

common.;

and lease of steel

ment, expansion, research,
Cedar, Lane, Teaneck, N.

•

common.

Business—Exploration




29.

Greenman

hy

(max

debt

temporarily suspending this issue

ness—Manufacture, sale

Fedco Corp.

amendment

Proceeds—For

Building, Lincoln, Neb. Underwriter—None.

Oct. 29;~1962 filed 20.000
common, of which
be offered by company and 2.500

—By

order

Global
June

general

$5,500,000 of 5V2-6% serial deben¬
tures, series E and F, due 1974-83. Price—At par. Busi¬
ness—A non-profit
organization of farmers devoted to
the

an

sition

Educational & Co-operative Union of

America

industries.

—

•

Importing, manufacturing and distributing
general merchandise "notions." Proceeds—For debt re¬
payment, inventory and working capital. Office—286

•

various

products foi

new

investor*
VTav 31.
—A

real

Realty

1P02 filed
200.000 shares.

estate

plaza <24th

Trust

Price

—

investment trust/ Proceeds

$10. Buslnes,
For con—

Volume

197

Number 6264

.

.

.

The Commercial and Financial Chronicle

.

(2031)
■truction

and

investment.

Office

Ave., N. W., Washington, D. C
Investors
Jan.

17,

asset value

A

Trading Co.

1963 filed

mutual

Denver Club
Co.
•

200,000

1963

'

•

Office—460

Diversified

filed

*

,

550,000

Fund,

;

Inc.
asset

Jaap Penraat Associates, Inc.
30, 196z tiled 100,000 common. Price—$3. Business
—Industrial designing, the design of teaching machine*
and the production of teaching programs. Proceeds—
For expansion, new facilities and
working capital. Offict "
Jan.

—315 Central Park W

&

.

N

Co.; Inc.!, New York.

V

Underwriter—R:

Offering

F: Dowr

Indefinitely post-

—

poned.

,

Fund, Inc.

April 10,

/

.

-

1963

filed 500,000 capital shares. Price—Net
plus 81/2%.. Business—A new mutual fund
seeking capital appreciation. Proceeds—For investment.
Office—467 Hamilton

•

Fund

Ave.', Palo Alto, Calif. Underwriter

Distributors, Inc. (same address).

;

Jefferson

March

(Thomas) Insurance Co.
1963 ("Reg. A") 6,840 common.

29,

.

are

to be offered by company

and 7,500 by
Publishing of

a

40,000
stockholder.
home study

Price—$6.50. Business —
courses through franchised dealers. Proceeds—For work¬
ing capital.
Office—407 Lincoln Rd., Miami Beach. Un¬
derwriters
Seymour Blauner Co., and Shelton Secu¬
rities Co., 663 Fifth Ave., New York.
—

Kraft

;

Price—$3.50.
of

To

proprietary

i4,uuu

drug

withdrawn.

The

stockholders

by

packaging

products.

Maradel

r

April

ated

cosmetics,

May 24, 1962

Sesame Corp.
riled $22d.uU(j 01 0%

conv.

subord.

deben

1972, and 150.000 common to be offered i 1
consisting of a $300 debenture and 200 shares

units

Price —$800 per unit. Business
of

ouuon

able,

sesunie

inventories,

Office

—

2301

National

•

welded

N.

Y.

expansion

Main

—John A, Dawson &

and

accounts

receiv

working capita)

St., Paris, Texas.

Underwriter

Co., Chicago.

Kwik-Kold, Inc.
March 29, 1962 ("Reg. A") 100,000 common of whict
65,000 will be sold for company and 35,000 for stock¬
holders. Price
$3. Business — Manufacture of certaii
patented cooling packages. Proceeds—For debt repay
ment and working capital. Office—Jennings
Bldg., P O
Box
638, Moberly, Mo. Underwriter-—John W. Flynr
8c Co., Santa Barbara, Calif. Note—This letter will b*
—

withdrawn.
•

'>//•■"

Leeds

March

Shoes, Inc. (6/10-14)
29, 1963 filed 90,000 common. Price—$3.50. Busi¬

ness—Company operates 25 retail shoe stores in Florida.
Proceeds—For

debt

repayment, working capital, and
expansion. Office—1310 North 22nd St., Tampa, Florida.
Underwriter—Strathmore Securities, Inc., Pittsburgh.

Liberty Fabrics of New York, Inc.
March 28, 1963 filed 108,676 common being offered for
subscription by stockholders on the basis of one new
share

for

each

2V2

held

of

record

May 6. Rights will
expire May 20. Price — $11.75. Business — Design and
manufacture of woven and knitted laces and
nettings.
Proceeds—For a new plant, loan repayment, and work¬
ing capital. Office—105 Madison Ave., New York. Un¬
derwriter—Blair & Co., Inc., New York.
Life Assurance Co. of

March

28,

Pennsylvania

(6/3-7)
shares. Price—By

1963

ensburg, Md.
Underwriter—Netherlands Securities Co.
Inc., New York. Offering— Indefinite.:
.

•

National Fidelity Life Insurance Co.
(5/22)
28, 1963 filed 72,455 common, of which 36,227
shares are to be offered
by company and 36,228 shares
by a stockholder.
Price—By amendment (max.
March

.

postponed.

•

•

.

•

derwriter—E. F. Hutton & Co.,
Inc., New York.

Offering—Indefinitely

National Memorial

^^• V'> >;

11, 1962 filed 4,750,000 common. Price—$1. Busi¬
ness—Company plans to engage in cemetery develop¬

1,000,000 class B common. Price—
$1.25. Business—A holding company for three life insur¬

ment

Medical

Logos Options, Ltd.
;
April 11, 1962 filed 250,000 capital shares,. Price — B?
amendment (max. $10). Business—A diversified closed
end investment company

Proceeds—For investment. Of

flee—26 Broadway, N Y Underwriter—Filnr. Bullard R
Smyth. N. Y Vote—This company formerly was named

Logos Financial, Ltd.

$1

Business—Operation of drive-in restaurants. Proceeds—
For leases,
equipment and working capital. Office—
1601 Mandeville Canyon Rd., Los Angeles. Underwriter
—Keon & Co., Los Angeles.
-Lunar Films,

Inc.

(5/27-31)

*

Nov.

—

filming
543

Madison

"Lambert

&

Mad way

Feb.

nroduction

and

and

working capital.
Office—
Ave., New York. Underwriter — Ingram.
Inc., 50 Broad St., New York.

Stephen,

Main Line Homes Inc.

*

"

:

Proceeds

finance future credit sales of homes. Office—315 E. Lan¬
Ave..

Wayne,

Pa

Underwriter—Drexel

&

Co..

Philadelphia. Offering—Postponed.
;Management Investment Corp.
Aug. 29, 1962 filed 2,000 common (with attached
rants).

Price—$500.

search




of

July
Price

common.

medical

$1. Busi¬

ment

equipment
purposes.
Office
Financial Equity

general

corporate
Underwriter —

Office

—

714

Boston

Management

A

—

—

First

MSI

fo.

Business—Exploration, develop¬

corporate

purposes

New

Minneapolis

Bldg..

(5/27-31)

investment, and working capital. Office—1228 Wantagh
Ave., Wantagh. New York.

—Distribution of commercial dry cleaning and laundryequipment. Proceeds—For general corporate purposes
Office—1101
East
Tremont Ave.,. Bronx, New York

Missouri

Young

&

Co.,

Inc.,

Fidelity Life Insurance Co.

New

New World
Feb.

(5/22)

Brentwood Blvd.,
& Co., Chicago.

St. Louis.

filed

North Central
March

Underwriter—A. C.
!

1963,

Underwriter—None.

Inc.
250,000

Angeles.
Underwriter
(same address).

Price—By amend¬
(max. $8.50). Business—A legal reserve life insur¬
compapy.
Proceeds—For expansion. Office—2401

South

21,

Fund,

common.

Price—Net

asset

value plus 83/2%. Business—A new mutual fund. Pro-;
ceeds—For investment. Office—4680 Wilshire
Blvd., Los

York

March 27, 1963 filed 300,000 common.
ment

Industry Capital Corp.

Feb. 25, 1963, filed 30,500 common.
Price—$10. Business
—A small business investment
company. Proceeds—For

Jan. 28, 1963 refiled 100,000 common. Price—$4. Business

Underwriter—Herbert

City.

ment and mining. Proceeds—General
corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. McPherson &
Co., Toronto.

•'

National Corp.

31, 1962 filed 85,000 common. Price—By amend¬
(max. $4). Business—Company plans to sell or

Campbell Island Mines Ltd.
Oct. 13, 1961 filed 475,000 common, of which
400,000 are
to be offered
by the company and '75,000 by a stock¬
holder. Price—50 cents.

investmen

management

general

National Bank

Underwriter—None
•

For

Unl-Pac, Inc.

New

closed-end

Proceeds
2615

—

cer¬

mortgage

porate purposes.
Office—Tekoil Bldg., Oklahoma
Underwriter—Peter Morgan & Co., N. Y.

Bldg.,
& Re¬

by stockholders on the basis of one shar«
each two. shares held. Price—By amendment (max
Busines.11

Business—A

Natural Gas & Oil
Producing Co. (6/27)
Sept. 7, 1962 filed 180,000 class A common.
Price—$5.
Business—Production : of natural gas and oil. Proceeds
—For drilling
expenses, working capital and other cor¬

Corp., (same address).

company.

stock, $1.15
Proceed*—For

certificates

Price—For

coin operated vending machines.
Proceeds—For
iebt repayment, equipment and
working capital. Office
—15 Peachtree St., Atlanta. Underwriter—None.
Note—
This registration will be withdrawn.

^

investment.

Office

for

amount

shares.

Lease

—

electronic

Underwriter—Centennial

29,

convertible

New

—

World

Distributing Co.

Airlines, Inc.

1963' filed

;

$1,500,000

debentures

due

of 5*/2% subordinated
1978, to be offered to com¬

stockholders of record April 15, 1963, without allo¬
or
limitation. Unsubscribed debentures will be
offered for public sale. Price—At par. Business—Opera¬
tion of an airline in ten mid-western
states and

mon

Mobile Home Parks Development Corp.

cation

Jan. 28, 1963 filed

1,250,000 common. Price—$2.50. Busi¬
ness—Company plans to develop mobile home parks and /;■
residential

and

commercial

real

estate.

corporate purposes. Office—82 Baker St.,
Underwriter—Overseas Investment Service,

lanta,

ville, Spain.

Ontario,

Proceeds—Foi

general

Canada. Proceeds—For aircraft
modification, and work¬
ing capital. Office—6201 Thirty-fourth Ave.,
South, Min¬

At¬
Se¬

neapolis. Underwriter—None.

■:

Mountain

Northern States Life Insurance
Corp.

States

March 26,

Telephone & Telegraph Co.

(6/3)

on

1963 filed 280,000

subscription

May 3, 1963 filed 4,037,431 common to be offered for
subscription by stockholders of record on June 3, 1963
the basis of

one

share

for

$2.50).

by

each

common

stockholders
iy2

held.

on

the

to

offered for'
of

one

new

Price—By amendment

Business—Writing

Proceeds—For

Price—By amendment. Proceeds—To,
advances from A. T. & T., parent, and for other '
corporate purposes. Office—931 Fourteenth St., Denver.

be

basis

of 1 general
expansion.
Office—1840
Ave., Milwaukee. Underwriter—None.

share for each 10 shares held. Rights/;

will expire June 28.

life

(max.
insurance.

North

Farwell

repay

•

.

Nuclear

(max. $15). Business—Research and development
contracts using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of
consulting and radiation measure¬
ment services.
Proceeds—For equipment, debt
repay¬
ment, expansion and working capita1.. Address—P
O.
Box 10901, Pittsburgh Underwriter—JnRnctnn T,priori ^
Co., Washington, D. C., Note—This registration will be

invest in tax-exempt bonds of states, counties
nunicipalities and territories of the U. S. Proceeds—Fo^

Music

Haupt

81

Co.,

Ill

Broadwa^

Offering—Indefinite

withdrawn.

Royalty Corp.

July 27, 1962 filed 150,000 common.

Price—$1.

Business

Optech, Inc.

-

—Company
etc.

and

acts as representative of artists, musicians
plans to engage in the music publishing busi¬

Proceeds—For

of

debt

repayment,

March

28,

1963

the

musical

"Laser"

tronics.

(6/3-7)
filed

140,000 common. Price—$3. Busi¬
development of materials used in
field, and in related areas of optical elec¬

ness—Research

public relations

properties, and working capital
Ave., N. Y. Underwriter—Associated
Securities Co., 545 Fifth Ave., N. Y.

Office—545

Engineering Corp.
common. Price—By amend¬

on

—

^oonsor—Trs

&

ment

'und will

New York!

Science

March 29, 1962 filed 100,000

v"

Municipal Investment Trust Fund, Series B
April 28, 1961 filed $15,000,000 '15,000 units) of interests
Price
To be supplied by amendment. Business — Thi

•cquisition
war¬

National

subscription
57).

common

.

Midwest Technical Development Corp.
Feb. 26.
1962 filed 561,500 common to be offered
for

$762;

300,UOo

company
general
corporate
pur¬
Office—113 S. Hydraulic, Wichita, Kan. Under¬
writer—National Mortgage Agency, Inc., (same
address).
Note—This offering will be made
only in the State of
Kansas.
-/<./•;
/

initially to members of the medical profession.

Proceeds—For

and

poses.

capital shares. Price—Net
asset value plus 5%. Business—A new mutual fund to be

Denver.

20)

loan

Meridian Fund, Inc.
March 4, 1963 filed 500,000

offered

Mortgage Corp., Inc.
refiled $8,000,000 face

Un¬

Mont.

.

^

—Studio City, Calif.
Corp., Los Angeles.

ness

Business—Company plans to fur-

•

For

—

nvestment

1963 filed 100.000 common. Price—By amend¬
ment (maximum $14). Business—Production, sale, erec¬
tion and financing of manufactured homes. Proceeds—To
19,

caster

Manufacture

Broadway, Red Lodge, Mont.

1962

tificates,

Video Corp.

13, 1961 filed 250,000

ness

28,

(series

open-end.

Underwriter—-None.

Aug. 31, 1961 filed 125,000 common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—Fot

Dec.

1

sociates, Inc., Denver.

.

—

National

(same address). Offer¬

Industries

Medical

and operate a life and
disability
Proceeds—For general corporate
pur¬

derwriter—Security Brokerage Co., Billings,

Proceeds —/For investment in the
medical industry and capital growth situations. Office ?
—677 Lafayette St., Denver. Underwriter — Medical As■}

Offering—Indefinite.

.Lord Jim's Service Systems, Inc. (5/30)
Jan. 14, 1963 ("Reg. A") 100,000 common. Price

Corp.

establish

to

concern.

Office—13 S.

poses.

Fund, Inc.
Oct. 23, 1961 filed 25,000 common. Price—$10. Business
—A closed-end investment
company which plans tc

Allyn

St., Philadelphia
Underwriters—Auchincloss, Parker & Redpath, Phila¬
delphia, and Arthurs, Lestrange & Co., Pittsburgh.

Securities

ing—Expected in late May.

and

Insurance

firms. Proceeds—For loan
repayment, operating ex¬
penses, and investment in other insurance concerns. Ad¬
dress—714 Medical Arts Bldg., Oklahoma
City. Under¬

writer—Lincoln

Estate*

Oct.

Medic Corp.
Feb. 28, 1963, filed

and

Walnut

reinforcing fabric, gates and related
Proceeds—For construction of a plant in Ire¬
working capital. Office-^-4301 46th St., Blad-

Inc.
29, 1962 filed 60,000 common. Price—$3.75. 'Bush ..
$35).
Business—Writing of life, accident, and health insur¬
aess—Graphic design and printing. Proceeds—For pub¬
ance.
Proceeds—For debt
lishing a sales catalogue, developing a national sales''
repayment, and other corporate purposes. Ofice—1002 Walnut
»taff and working capital.
St., Kansas City/Un-:
Office—812 Greenwich St.

ance

Office—2204

concrete

land, and

Marshall Press,

filed 100,000 capital
amendment (max. $33). Business—Writing of life, acci¬
dent, and health insurance. Proceeds—For investment,
expansion.

Manufacturing Co., Inc.

filed

100,000 common. Price—$8.75. Busi¬
Manufacture' of galvanized chain link fence

products.

Underwriter—Horn- "
* «■
*

*

Fence

1962

ness

(5/22)

.vlay

Processing gnd distri-

proceeds—For

seeu

plant

N.

—

—

I

pharmaceuticals and related products. Pro-H
an acquisition and
working capital. Office—

ceeds—For

stores.

pansion

1, 1963 filed 150,000 common.' Price—By amend¬
(max. $25). Business—Manufacture and sale of;

ment

,

Proceeds—For debt repayment, store ex¬
and working capital.
Address
Portage, Pa.
nderwriter—Cortlandt Investing.
Corp., N. Y. Note
This registration will be
withdrawn.

anc

Proceeds—

-:,vv.

Products,'Inc.

c>o.

—

named

be

company's assets have been sold to" Nov.
29,

•

Price

Equipment & Plastics Corp.
common. Price—$5. Business
—Operation of a cleaning and
pressing plant and affili¬

equipment, new products, debt repayment and workng
capital.
Office—156 Tillary ' St., Brooklyn, N
Y
Underwriter—To be named.-Note—This registration will
another firm.

insurance

common.

Sept. 28, 1961 filed 105,000

For

be

kim

125,000

National

.

and

company

Business—Manufacture,

various

become

(John)

tures, due

!f

Underwriter—

ance

Key Training Service, Inc. (6/10-14)
March 26, 1S63 filed 47,500 common, of which

'

oy

vviiu a 1

filed

By amendment
$15). Business—Writing of health and accident in¬
surance. Proceeds—For
general corporate purposes. Address—2632 McGee St., Kansas
City, Mo. Underwriter—

29, lyb2 lilea 72,UuU common, of which 58,000 art
offered

be

7

(max.

—

•

•

Atlanta.

N. Y. Underwriter—To be named.

Price—By
Writing of marine, automobile
and fire insurance. Proceeds—For
selling stockholders.
Office—457 Starks Bldg., Louisville. Underwriter—Stein
Bros. & Boyce, Louisville. Offering—Imminent.
amendment. Business

■lauviiai

Dec.

•'

Ave. of the Americas,
blovyer & Weeks, N. Y.

.

asset* value

—Mutual

Bldg.,

516

'•

^

Janus

Federal

Manhattan Drug Co., Inc.

new

investment. Office—54 Wall St., New York. Distributor—
Israel Fund Distributors, Inc. (same
address).

:

Fulton

Jdarch

mutual fund special¬
American securities. Proceeds—For

izing in Israeli and

,

—130

None. •'

.0

Price—Net

common.

value plus SV2%. Business—A

-

equity capital to firms in the atomic, space and
fields, and provide advisory and management
counseling services on a fee basis.
Proceeds—For re¬
payment of loans, and general corporate purposes. Offict

Building, Denver. Distributor—Nemrava &

American

April 22,

shares. Price — Net
sales charge. Business—
investment.

aish

missile

capital

Proceeds—For

(same address).

Israel

Connecticut

(6/3-7)

(max. $5), plus 8%
fund.

3315

—

Underwriter—None.

31

and

Proceeds—For

general

Fifth

,

.

".

,

corporate

Continued

purposes.
on page

32

.

•

32

The Commercial and Financial Chronicle

(2032)

Powell

Continued from page 31

New York. UnderwritCo., Inc., and Heritage Equity

ket

Power Cam

Corp., New York.
•

Enterprises, Inc.

(J. Herbert)

Orr

(6/10-14)

distribute cartridge type tape

Outlet Mining

^

1962 filed 900,000 common. Price—$1. Buslnesi
Mining. Proceeds—For equipment and working capi¬
tal.
Address—Creede. Colo. Underwriter—None.
Air

Ozark

•

Inc.

Lines,

March 28,

Yates, Heitner & Woods, St. Louis.

(5/17)

April 4, 1963 filed 61,627 class A shares to be offered
for subscription by stockholders on the basis of one new
share for each nine class A and class B shares held of

will expire June 3, 1963. Price
—By amendment (max. $34). Business—Company pro¬
duces equipment for the dehumidification of compressed
gases,
control of flow and temperature, detection of
gases, and the treatment and pumping of water. Proceeds
—For
loan
repayment, equipment, advances to sub¬
sidiaries, anc} working capital. Office—30 Sea Cliff Ave.,
Glen Cove, L. I., New York. Underwriter—L. F. Roths¬
child & Co., New York.
record

17. Rights

May

Pan American

Beryllium Corp.
Feb. 28, 1962 filed 100,000 common. Price—$5. Business
—Company plans to mine for beryl ore in Argentina.
Proceeds
For debt repayment, equipment, and other
corporate purposes. Office—39 Broadway, N. Y. Under¬
—

writer—To be named.
Parkview

Drugs, Inc.

Parkway Laboratories, Inc.
6, 1961 filed 160,000 common.

Dec.

an

Business

drugs and pharmaceuticals. Proceeds
acquisition, research and other corporate pur¬

Office

poses.

—

Pennsylvania

2301

Underwriter—Arnold
This

Malkan

&

Ave.,

Philadelphia
Co., Inc., N. Y. Note—

registration will be withdrawn.

related activities.

icing patients' accounts of member hospitals, physicians
dentists. Proceeds—For debt repayment and work¬

Securities Fund, Inc.
24, 1963 filed 500,000 common. Price—$100 ini¬
tially; thereafter, at net asset value. Business—A new
mutual fund designed to provide an investment program
for pension trusts. Proceeds—For investment. Address
•—20 Broad

St., New York. Underwriter—None. Adviser
—Smith, Barney & Co., New York.
Peterson,

Howell & Heather, Inc. (6/3-7)
March 26, 1963 filed 33,383 class A common. Price—By
amendment (max. $35). Business—Furnishing of Auto¬
mobile fleet management service to firms in the U. S.
and

Canada.
N.

Brown &

Proceeds—For

Charles

selling stockholders. Office
St., Baltimore. Underwriter — Alex.

Sons, Baltimore.

marck, N. D. Underwriter
(same address), r

Sapawe Gold Mines Ltd.

v

,

April 3, 1963 filed 2,000,000 shares of beneficial interest.
Price—Net asset value plus 8V2V0. Business—A new mu¬
tual fund seeking maximum income, and long term
growth of principal. Proceeds—For investment. Office—
60 Congress St., Boston, Underwriter — Putnam Fund
Distributors, Inc. (same address).

derwriter—N one.
• Safran
Printing Co. (5/28)
April 29, 1963 filed 225,720 common. Price—By amend¬
ment
(max. $18). Business — Company specializes in
multi-color
printing for publishers and commercial
clients, and produces business forms for conventional
use.
Proceeds—For
selling stockholders. Office—3939
Bellevue St., Detroit. Underwriters—White, Weld & Co.,
Inc., New York, and Watling, Lerchen & Co., Detroit.

Realty Equities Corp. of New York
April 3, 1963 filed 117,853 common to be offered for
subscription by common stockholders on the basis of
one new share for each three held.
Price—By amend¬
ment (max. $7). Business — Company and subsidiaries
are engaged in the purchase and sale, development, man¬
agement, and holding of real estate properties. Proceeds
—For purchase of additional properties
and working
capital. Address—Time & Life Bldg., New York. Under¬

Scully Recording Instruments Corp.
Apr. 23, 1963 ("Reg. A") $240,000 of 8% subord,
debentures
terest.

Industries,

23, 1962

("Reg. A")

For

capital

411

W.

Red

travel

(5/27-31)

and

common.

—

Moran &

$2

Proceeds—

Feb.
are

ate,

23, 1963 filed 240,000 common, of which 100,000
by company and 140,000 by stockhold¬
Price—By amendment (max. $20). Business—Manu¬

ers.

Underwriter

—

Merrill Lynch, Pierce,

Reliance Life

Pictronics, Inc. (5/20-24)
Feb. 27, 1963 ("Reg. A") 75,000 common. Price — $4.
Business-'-Production of TV documentary films, and the
processing of colored kodachrome film. Proceeds—For
equipment, and working capital. Office — 56 Bennett
Bldg., Wilkes-Barre,-Pa. Underwriter—G. K. Shields &
V,
Co., New York. 1

Corp.

April 1, 1963 filed 90,122 common to be offered for sub¬
scription by common stockholders on the basis of one

.

Financial

1962

on

Corp.

the basis of 4

company

Life

Price—$15. Business

Illinois.

Price—By amend¬
Business—Writing of life insurance.
Proceeds—For sales promotion, and investment. Office
—15 South Northwest Highway, Park Ridge, 111.
Un¬
$4).

Proceeds—For

to

acres

common

and

three-

Signalite Inc.

purchase

of land

Warren

for home

sites.

Olive St.,

Proceeds—For

St. Louis.

'

Milton D. Blauner &

Under¬

Co., New York. Note—This regis¬

tration will be withdrawn.

Co., St. Louis. Offering—Indefi-

•

Southeastern

Mortgage Investors Trust

(5/21)

April 8, 1963 filed, 100,000 memberships in the Founda¬
tion. Price—$10 per membership. Business — Company
will operate retirement centers for the use of rent-free
private homes and apartments by members upon their
retirement. Proceeds—For working capital, construction
corporate

&

and working capital. Office
Bldg., Cleveland, Ohio. Under¬
Co., Cleveland.
Offering — In¬

29, 1962 filed 126,000 common. Price—$4.50. Busi¬
ness—Manufacture, sale and development of glow lamps
for use as indicators and circuit components. Proceeds—
For debt repayment, equipment and working capital.
Office—1933 Heck Ave., Neptune, N. J. Underwriter—

Retirement Foundation, Inc.

other

shares of beneficial interest.

A real estate investment trust.

Jan.

nite.

and

of

investment

writer— McDonald

Office—3615

writer—R. L.

share

definite.

9

1,250 class A shares to be
offered in units consisting of four shares and one war¬
rant.
Price —$32 per unit.
Business — Company will
erect and operate a luxury hotel and resort facilities,
and sell 80

—

—1956 Union Commerce

derwriter—None.

warrants

C

Underwriter—None.

ment

year

class

held.

March 29, 1963 filed 150,000 common.

Corp. of Missouri
Nov. 27, 1962 filed 125,000 class A

Co., an affili¬
shares/for each class A or

two-thirds share for each

—

Fenner &

nix.

Resort

Underwriter—

filed

Shaker Properties
Oct. 19, 1962 filed 215,000

(max.

in¬

record¬

Remaining 94,822 and any unsub¬
publicly. Price—To public,
$6; to stockholders, $5. Business—Company plans to en¬
gage in the
consumer
finance, mortgage, general fi¬
nance and related
businesses. Proceeds
For general
corporate purposes. Office—830 N. Central Ave., Phoe¬

.

Insurance Co. of

disc

scribed shares will be offered

Sudekum Bldg., Nashville,

—

master

500,000 common, of which 405,000
to be offered for subscription by holders of the A,

Selective

trial rental laundries. Proceeds—For debt repayment and

Tenn.

28,

B share and

facture and distribution of industrial uniforms to indus¬

working capital. Address

a

B and C stock of Selective Life Insurance

(6/3-7)

to be offered

are

of

Walter St., Bridgeport, Conn.
Co., Newark, N. J.

Selective

investment, and working capital. Office—
St., Los Angeles. Underwriter — Costello,
Co., Beverly Hills, Calif.
•

Kap, Inc.

Business—Manufacture

conv.

plus accrued

par

Office—62

Price

entertainment.

Price—At

1973.

Proceeds—For debt repayment, sales pro¬
motion, working capital and other corporate purposes.

(

7th

Russotto &
•

of

Inc.
75,000

due

ing machine.

writer—None.
Recreation

Un¬

April 16, 1963 filed 1,000,000 common. Price—By amend¬
ment
(max. 30c). Business — Company is engaged in i
exploratory mining for gold. Proceeds — For a mill,
equipment, loan repayment, and other corporate pur¬
poses. Address—Phoenix Bldg., Toronto,
Ontario. Un¬

Putnam Income Fund

•

corporate pur¬

poses.

Provident Management Co.

—

Proceeds—For general

Office—611 East Marceau Street, St. Louis.
derwriter—Reinholdt & Gardner, St. Louis.

Inc.

Fund,

April 11, 1963 filed 1,000,000 common. Price—Net asset
value plus 8V2%. Business—A new mutual fund. Pro¬
ceeds—For investment. Office—316 North Fifth St., Bis¬

construction.

•

Polaris

Stock

Provident

Pension

—2521

Chairman.

and

Smith Inc., New York.

April

•

Shipbuilding-Federal Barge, Inc.
(6/11)
:
■
'
'
28, 1963 filed 150,000 common, of which 50,000

to be offered

are

April

—Manufacture of

—For

.:V'

by company and 100,000 by H. T. Pott,
Price—By amendment (max. $10). Business
—Operation of a shipyard in St. Louis. Subsidiaries op¬
erate water carrier systems, a railroad, a vessel repair
and barge construction yard, also dry docks and other

Business—Sale

Price—$5.

■

Louis

March

inc.

Jan. 8, 1963 filed 40,000 common. Price—$5. Business
—Company specializes in financial consulting, and serv¬

Nov.

(5/27-31)

April 29, 1963 filed 14,080 common. Price—By amend¬
ment (max. $20). Business—Company is engaged in the
retail drug business. Proceeds—For selling stockholder.
Address—6000 Manchester Trafficway Terrace, Kansas
City. Underwriter—Scherck, Richter Co., St. Louis.
.

St.

.

—

Corp.

/v/'

—Indefinite.

Fund Inc.

April 8, 1963 filed 200,000 common. Price — Net asset
value plus 4%. Business—A new mutual fund specializ¬
ing in insurance stocks. Proceeds—For investment. Ad¬
dress
Plankington Bldg., Milwaukee. UnderwriterFund Management Inc. (same address).
Pall

'./•■ '■'/..//

Underwriter—None.

derwriters—Auchiiicloss, Parker & Redpath, N. Y., and

•

equipment and working capital.)
Ave., N. Y. Underwriter — Federman, .
Co., N. Y. Note—This registration will be

7th

&

ing capital. Address—100 W. Tenth St., Wilmington, Del.

terty improvements and working capital.
Address—
Lambert-S't. Louis Municipal Airport, St. Louis.
Un¬

Insurance

Develops

Proceeds—For bond retirement and plant
Address—Alexander City, Ala. Underwriter
—Hornblower & Weeks, N. Y.
Note — This company
formerly was called Russell Manufacturing Co. Offering

Underwriter—None.

Professional Men's Association,

.

—

photographic /

white

expansion.

1963 filed 40,000 common. Price—$25. Busi¬
and sale of real property, chiefly un¬

St., Princeton, N. J.

Business

and

cloth.

cotton

Inc.

Lands,

improved land. Proceeds—For debt repayment, and ac¬
quisition of additional properties. Office—195 Nassau

due

PMA

Union, N. J

ness—Purchase

5

May 3, 1963 filed $3,000,000 of conv. subord. debentures
1978. Price— By amendment. Business—Operation
of
local
air transportation between
54 mid-western
cities. Proceeds—For debt repayment, equipment, prop-

Research

black

For

Mills, Inc.
Sept. 28, 1962 filed 312,500 common. Price—By amend¬
ment
(max. $12).
Business—Manufacture of athletic/
clothing, knitted underwear, children's sleepwear and

30,1962 filed 150,000 common. Price—$5. Business
of mortgages, anc

Princeton

amendment.

and

>„

Russell

working capital. Office—18 Lancaster Rd.,
Underwriter—To be named.

Feb. 28,

By

—

withdrawn.

—Real estate. Proceeds—For purchase

Co., Inc.

—

common, of which 100,000
by the company and 200,000 by stocK-

color,

Proceeds

Office—245

Prescott-Lancaster Corp.
March

Price

prints

Stonehill

St., Flint, Mich. Underwriter—Farrell Securities
Co., New York. ,//.//'; ,3/ ///-V;-

sell at retail nationally kn,own audio
manufacture men's and boy's dress
trousers. Proceeds — For additional inventory, equips
ment, research, and working capital. Address—P. O.
Box 27, Opelika, Ala. Underwriter—First Alabama Se¬
curities, Inc., Montgomery.
therefor;

grams

and

iiied ; 3uu,uo0

latji

be offered

holders.

film.

Leith

visual equipment; and

za,

to

are

Corp.

28, 1963, filed 200,000 capital shares. Price—$4.75.
Business—Company plans to manufacture a new type of
brake unit for heavy duty automotive vehicles. Proceeds
—For equipment, and working capital. Office — 2604

player recorders and pro¬

Co., Inc., New

Royaltone Photo Corp.
Nov.

Jan.

,

May 1
1962 filed 200,000 common. Price—$5.25. Busi¬
ness—The company and its subsidiaries manufacture and

Thursday, May 16, 1963

York.

Underwriter—None.

St., Shreveport, La.

.

,

New York. Underwriter—Reuben Rose &

■/"

Inc.

Sept, 28, 1962 filed 100,000 common. Price—$5. Proceedi
—To drill for and operate oil wells.
Office—418 Mar¬

Office—102 Grand St., Westbury,
ers—Stone, Ackerman &

Petroleum,

.

Feb. 15,

1963 filed 1,000,000 shares of beneficial interest.
Price—$10. Business—A real estate investment trust.
Proceeds—For investment. Office—500 E. Morehead St.,

,

Charlotte, N. C. Underwriter—Fleetwood Securities Corp.
of America, N. Y.

Office—235 Lockerman
St., Dover, Del. Underwriter—John D. Ferguson, Dover,
purposes.

Southern

April 22,

California

Edison Co.

(5/22)

$60,000,000 of first and refunding
mortgage bonds, series Q, due May 15, 1988. Proceeds—
(max. $17). Business — Company, and subsidiaries are ;
r
Richard Gray & Co., Inc.
To refund $32,400,000 of outstanding 3% bonds due 1965,
June 21, 1962 ("Reg. A") 60,000 common.
engaged
in
diverse
activities
including advertising,
and for debt repayment. Office—601 West Fifth St., Los
Price—$5.
building construction, TV and radio, data processing,
Business
A securities broker-dealer.
Proceeds —* For
Angeles. Underwriters — (Competitive). Probable bidwarehousing, equipment leasing, and river terminal
working capital and other corporate purposes. Office—• V ders: Halsey, Stuart & .Co. Inc.; First Boston Corp.-Dean
operations. Proceeds—For working capital. Office—111 •/; 237 W. 51st St., N. Y. Underwriter—Richard
Witter & Co. (jointly); Blyth & Co.-Lehman BrothersGray Co.,
East Wisconsin Ave., Milwaukee. Underwriter — The
New York. Offering—Indefinite.
Merrill Lynch, Pierce, Fenner & Smith Inc.-Salomon
Marshall Co.
(same address).
Offering—Expected in
Brothers & Hutzler (jointly). Bids—May 22 (8:30 a.m.
Richmond Corp.
early June.
PDST) at above address.
Dec. 21, 1961 filed 142,858 common. Price—$7. Business
Potomac Real Estate Investment Trust
• Southern Union Gas Co.
—A real estate investment
(5/27-31)
company. Proceeds—For debt
July 6, 1962 filed 1,000,000 shares of beneficial interest
April 22, 1963 filed $5,000,000 of sinking fund debentures
repayment and general corporate purposes.* Office—220
Price—By amendment (max. $5). Business—A real estate
due 1983, also 50,000 cumulative preferred shares (par
K St., N. W., Washington, D. C. Underwriter—HirscheJ
new

share for each

seven

held. Price

—

By amendment

Del.

—

1963 filed

-

.

•

investment trust.

-

Proceeds—For investment. Office—880
Bonifant St., Silver Spring, Md. Underwriter—None.
Poulsen

Insurance Co. of America

March 29, 1963 filed 100,000 common.
ment

(max.

$10).

Business—Writing

and

health

insurance.

and

other

corporate

Plaza, Park Ridge, 111.
Chicago.




(5/28)

Price—By amend¬

of life, accident,
debt repayment,
Address—Executive

Proceeds—For
purposes.

Underwriter—A. C. Allyn & Co.,

&

Co..

The

of this
•

Silver

SEC

has

Spring, Md.

challenged

Offering—Indefinite., Note—
the

registration statement.

Rona Lee

Corp.

and

accuracy

adequacy

:

(6/3-7)

Sept. 26, 1962 filed $250,000 of 6%% debentures and
50,000 common. Price—For debentures, by amendment;
for stock, $4.
Business—Design, manufacture, and dis¬
tribution of girls' blouses, sportswear, and coordinates.
Proceeds—For debt repayment. Office—112 W. 34th St.,

$100). Price—By amendment. Business—-A public utility
rendering natural gas service in Texas, New Mexico,
Arizona

and

Colorado.

Procecds-^-For

debt

Address—Fidelity Union Tower, Dallas.
A. C. Allyn & Co., Chicago.

repayment.

Underwriter—

Stephenson Finance Co., Inc. (6/3-7)
April 12, 1963 filed $1,000,000 of 6% sinking fund subord.
debentures due Nov.
interest:

Business—A

1, 1978. Price—At par and accrued
consumer finance
company which

Volume

is also

engaged

surance.

Number 6264

197

.

.

in the sale of automobile and

Proceeds—For

debt

repayment

life in¬

Tri-Nite Mining Co.

and other cor¬

*

^

-

porate purposes. Office—518 S. Irby St., Florence, S. C.
Underwriter—Alester

zinc

G.

Furman

Co.,

Inc.,

Sterling Copper Corp.
Aug. 2, 1962 filed 850,000 common. Price—$1. Business
—Company plans to operate a non-ferrous rod and tube
mill.

due

on

a

Ultrasonic Laboratories,

Proceeds—For plant and

—

Pinconning, Mich.

ized

primarily in the field of contamination
Company also acts as sales agents and distrib¬
utors of allied equipment in the fields of contamination
control and ultrasonics.
Proceeds—For debt repayment,

due 1977, and 25,000 class A common. Price—For
debentures, $1,000; for stock, by amendment (max. $12).
Business—Distribution of tropical fish, goldfish, turtles,
animals, and acquarium supplies. Proceeds—For addi¬

tures

Stone Mountain Scenic

—None.

Feb.

1963,

21,

shares

Railroad, Inc.

the

public. Price—To stockholders, $5.50; to public,
$6.50. Business—Operation of a scenic railroadv Proceeds
—For construction, debt repayment and other corporate
purposes. Address—Stone Mountain, Ga. Underwriter—

United

,,

New

1, 1963 filed 30,000 shares of beneficial interest.
Price—$100. Business — A real estate investment trust.
Proceeds—For investment. Office—4900 Wilshire Blvd.,
Los Angeles. Underwriter—None.
v

Proceeds

Servomation

Aoril

Proceeds—For

Universal

ment,
sas

29,

&

Inc.,

Reed,

to be offered for

'

and expansion.

Address

City, and Texas National Corp., San Antonio.

Rita

>

Inc.

•

Proceeds—For the purchase of vessels, and working cap-/
May 1, 1962 filed 200,000 common, of which 100,000 are
to be offered, by company and 100,000 by stockholders / ttal.
Office—71 Saint Joseph St., Mobile, Ala. UnderPrice—$5^ Business—Operation of a chain of self-serv¬ r writer—Shields & Co., Inc., N. Y. Note—This registra¬
tion will be withdrawn.
>
.
*
ice retail stores selling clothing, housewares, etc. Pro¬
ceeds—For expansion, equipment and working capital
Western Steel, Inc.
r
Office—2220 Florida Ave.. Jasper. Ala., UnderwriterJan. 17, 1963 ("Reg. A") 245,000 common.
Price — $1.
Business-^-Company plans to erect a mill to produce cer¬
Philips, AppePj& .Walden, 115 Broadway, N. Y, Offering
tain types of iron by the new "Taylor Process." Proceeds
—Temporarily postponed.
—For plant
construction and general corporate pur¬
Tourist Industry Development Corp., Ltd..
poses. Address—Suite 412-413 Hynds Bldg., Cheyenne.
March 29, 1963 filed $5,000,000 of 7% senior debentures
Wyo. Underwriter—C. B. Hoke Agency, Cheyenne, Wyo.
due 1983. Price—At par. Business—Financing of tourist
Note—The SEC has issued an order temporarily sus¬
enterprises in Israel. Proceeds — For general corporate
.

.

t

pending this issue.

Jerusalem, Israel. Undrewriter—
American-Israel Basic Economy Corp., New York. Of¬
—

Western Union

fering—Expected in late June,
Transarizona

Resources,

March

Inc.

29,

debentures

-

filed

due

1983,

$4,000,000 of 6*4% subordinated
400,000 common. Price—For

and

May 28, 1962 filed 500,000 capital shares. Price—$1.50
Business—Exploration, development and production of

debentures, at par; for stock $3.50. Business—Company
will take over and operate Western Union Telegraph's

Casa Grande, Ariz
Proceeds—For equipment, exploration and working cap¬
ital. Office—201 E. 4th St.„ Casa Grande, Ariz. Under¬

international

the Lake

Shore copper deposit

operations. Proceeds—For selling stockholder, Western Union Telegraph Co., parent.
Office—60 Hudson St., New York. Underwriters—Ameri¬
can
Securities Corp., and Glore, Forgan & Co., New
York/ Offering—Expected in late July.

near

v

writer—None

(6/17-21)
May 3, 1963 filed 267,740 common, of which 70,000
Travelers

to be

offered

Express Co.,

Inc.

by company and

/

are

ing capital. Address—Northwestern Bank Bldg., Min¬
neapolis. Underwriter—Dean Witter & Co., Chicago.

Widman

Oct. 27,

197,740 by stockholders.

Price—By amendment (max, $15.50). Business—Sale of
money orders on a nation - wide basis through retail
merchants.- Proceeds-r-For debt repayment, and work¬




None.

to

be

F.),„ Inc.

1961 filed 162,000 common, of which 102,000 are

offered

holders.
,

telegraph

(L.

by

the

company

and

60,000

by

stock¬

Price—$3. Business—Operates a chain of retail

drug stores. Proceeds—Expansion, equipment and work¬
ing capital. Office—738 Bellefonte Ave., Lock Haven, Pa

Underwriter—Godfrey,

i\ [

..

.

•

'/;/

* Brown (John) Distilling Co., Inc.
April 29, 1963 ("Reg. A") 10,000 common.; Price — $6.
Business
Manufacture and wholesale distribution of
—

Gin & Vodka. Proceeds—For a plant, equiplicenses and working capital. Address—Harpers
Ferry, W. Va. Underwriter—None.
'
,
:

London Dry
.

ment,

* Capital Cities

Broadcasting Corp.

(6/12)

-

May. 9,-1963 filed 250,000 common. Price—By amend¬
ment (max. $23.37). Business—Company owns and oper¬
ates four TV stations and six radio stations; it also owns
a 40%
interest in Subways Advertising Co., Inc., which
sells advertising space in the New York City subways.
Proceeds-—For selling stockholders. Office—24 East 51st
St., New

York.-Underwriter—White, .Weld & Co., New

York.

^ Charmingfare Associates, Inc.
May 3, 1963 ("Reg. A") 600 common. Price—$100. Busi¬
ness—Operation of a public golf course at Candia, N. H.
Proceeds
For construction and promotion oPthe golf
—

Address—South Road, Box 361, R. F. D. No.

1,

Manchester, N. H. Underwriter—None.

International, Inc.

1963

.

A convertible

May 31, 1963. Price—25 cents. Business—Exploration for
copper, silver, lead and zinc ores. Proceeds — For min¬
ing operations. Address —: Pioche, Nev. Underwriter—

course.

'

,

preferred to be offered for subscription by stockholders
of record April 10, 1963, on the basis of one preferred
share for each five common shares held. Rights expire

Vend-Mart Inc.

•

Underwriter—None.

Underwriter—None.

—

stores.

Drive, Las Vegas, Nev.

^ Bristol Silver Mines Co.
April 26, 1963 ("Reg. A") 1,000,000 series

22, 1963 filed 60,000 common. Price—$4r Business
—Operation of coin-operated automatic ice cube vending
machines and clothes washing and
drying machines.
Proceeds
For debt repayment, equipment, expansion
and working capital. Office—565 Fifth Ave., New York.
Underwriter—M. G. Davis & Co., Inc., New York. Offering—Expected in mid-June.

.

i

'

* Barger (Harry), Inc.
:
/
.
April 30, 1963 ("Reg. A") 4,900 common. Price — $10.
Business—Manufacture of wrought iron furniture, and
the sale of carpeting, appliances, TV. sets and related,
items. Proceeds—For inventory, advertising and expan¬
sion. Office—1319 N. W. Eastman Ave., Gresham, Ore.

Jan.

Price
Pro¬
ceeds—For inventory, debt repayment and expansion.
Waterman Steamship Corp.
Office—819.Broadway, Kansas City, Mo. UnderwriterMidland Securities Co., Inc., Kansas City, Mo.
/ Aug. 29, 1'961 filed 1,743,000 common. Price—By amend¬
ment. > Business—The
carrying of liner-type cargoes
Top Dollar Stores, Inc.

Address

//.V i/.;./•':'/

+ Archean Exploration Corp.
May 8, 1963 ("Reg. A") 500,000 common. Price—25 cents.
Business — Exploration and development of iron ores.
Proceeds—For mining
operations. Office—2019 Santa

700 Gibraltar Bldg.,

—

1963, filed 328,858 common. Price—$1. Business
—A new mutual fund. Proceeds—For investment. Ad¬
dress—Sidney/Montana. Underwriter—To be named.

March 22, 1963 ("Reg. A") 60,000 class A common.

purposes.

Bethesda,

This Week

Jan. 23,

Distributors, Inc.

Business—Operation of department

women.

Issues Filed With SEC

Kansas City, Mo.

Feb. 14, 1962 filed 250,000 class A and 250,000 common U *
be offered in units of one share of each class.
Price—

fering—Indefinite.

—$5.

Maryland.

/^

1963 filed $1,026,000 of 7% junior subordi¬
capital notes (series A) due 1978; also

Urethane of Texas,

Texas Plastics, Inc.
July 27, 1962 filed 313,108 common. Price—$3.50. Busi¬
ness—Operation of a plant producing plastic film and
packaging -products.
Proceeds—For
working capital.
Address—Elsa, Texas. Underwriter—To be named. Of¬

Textile

for

Office—7940
Underwriter—

Finance Corp.

subscription by stockholders of Ten-Tex Corp., parent,
$5.05 per unit.
Business—Manufacture of urethane
of record Feb. 1, 1963 on the basis of one unit for each
foams.
-Proceeds—For
equipment,
working
capital
150 common shares held.
Price—$100.
Business—Sale / leasehold expenses and other corporate purposes. Office
and lease of machinery for production of tufted textile
—2300 Republic National Bank Bldg., Dallas.
Under¬
products. Proceeds — For debt repayment and working
writer — First Nebraska Securities Corp., Lincoln, Neb
capital. Office—3814 Tennessee Ave., Chatsworth, Ga.
Offering—Temporarily postponed.
Underwriter—Irving J. Rice & Co., Inc., St. Paul. Note
Valley Investors, Inc.
withdrawn.

Price—$7.50.

Inc.

Dallas. Underwriters—Midland Securities^ Co., Inc., Kan¬

'

31, 1962 ("Reg. A") 3,000 units each consisting of
6V2% 10-year debenture, 25 common shares and pur¬

was

Ave.,

None.

12,329 common to be sold for stockholders. Price—For
debentures, at par; for stock, by amendment. Business—
Company and 30 active subsidiaries are engaged in the
consumer finance
business. Proceeds—For debt repay¬

Ten-Tex, Inc.

•—This letter

convertible sub¬

investment, and expansion.

Wisconsin

nated convertible

shares

,

1962 filed $4,500,000 of 6.5%

11, 1961 filed 2,500,000 shares of stock. Price—V0

Underwriter—Waddell

company

common

t.

March 28,
1963 filed 150,000 common.
Business—Company writes life insurance

share. Business—A new mutual fund. Proceeds—For
Investment. Office—20 W. 9th Street, Kansas City, Mo.

Inc.

Inc., (same address).

/

j!

attached warrants)
to be offered for subscription by stockholders of cjass
A stock on the basis of $500 debentures for each 100
class A shares held, Price—$500 per unit. Business—
Real estate. Proceeds—For debt repayment and realty
acquisitions. Office—10 East 40th St., N. Y. Underwriter
—S. E. Securities, Inc., 10 East 40th Street, New York.
Note—This registration will be withdrawn.
Woman's Life Insurance Co. of America, Inc.

(5/20-24)

Fund,

■

per

company.

chase warrants for 100

Corp.

J. Under¬

ordinated debentures due 1977 (with

general corporate purposes,

United Variable Annuities

which plans to organize a life in¬
Proceeds—For investment in U. S.
Government Bonds and in new subsidiary. Office—801
Lafayette Life Bldg., Lafayette, Ind. Underwriter—Amo-

one

For

—

,

Inc.

be named.

Corp.

Jail. 26,

Offering—Indefinite.

York.

March

•

Wolf

Ltd.

New York.

Jan. 21, 1963 filed 48,500 common. Price—$100. Business

Dec.

Corp.

Philadelphia.

Inc.,

Office—1005 First Ave., Asbury Park, N.

writer—To

Ave., New York. Underwriter—Hemphill, Noyes & Co.,

Teaching Machines, Inc.
April 1, 1963 filed 165,000 common, of which 120,000
are to be offered by company, and 45,000 by stockhold¬
ers.
Price—By amendment (max; $9). Business—Com¬
pany develops .and sells teaching machines exclusively
for Grolier Inc. Proceeds—For debt repayment and other
corporate purposes. Office—221 San Pedro, N. E., Albu¬
querque. Underwriter—To be named.

sand

Plastic

poses.

April 19, 1963 filed 215,000 common. Price—By amend¬
ment (max. $22). Business—Sale of various food and to¬
bacco products through automatic vending machines.
Proceeds—Foro selling stockholders.
Office—410 Park

Feb.

holding

&

Electronics,

Co.,

&

Dec. 28, 1961 filed 125,000 common. Price-$4. Business
—Design and manufacture of picrision eLctrical and
electronic measuring devices and test -equipment. Pro¬
ceeds—For debt repayment and other corporate pur¬

by a

25,

United

surance

18,824

and

company

Winslow

31,176

Address—Rehovoth, Israel. Underwriter—Brager & Co.,

Sutro Mortgage Investment Trust

—A

by

which

of

common,

—

Proceeds—For general cor¬

Tecumseh Investment Co.,

offered

Saran

furniture.

porate purposes.. Office—211 Anderson Bldg., Lincoln,
Neb. Underwriter—Capital Investment Co., Lincoln, Neb.
.

50,000

1963, filed $330,000 of 7% convertible deben¬
tures due 1975 and 16,500 shares of 8% preferred ordi¬
nary "B" shares to be offered in units consisting of two'
$100 debentures and 10 shares. Price — $305 per unit/
Business
Manufacture of light household and office /

Feb.

Superior Benefit Life Insurance Co.
March 27, 1963 filed 600,000 common. Price—$2.50. Busi¬

.

be

to

are

filed

phia. Underwriter—Stroud
Offering—Indefinite.

(5/27)

Co.

plus and for expansion. Office — 1939 N. Meridian St.,
Indianapolis. Underwriter — K. J. Brown & Co., Inc.,
Muncie, Ind.
■ ;•,

on the basis of one share for
each three shares held. Unsubscribed shares will be sold

ness—Sale of life insurance.

'v.7/.7'V/i

selling stockholder. Price—$7.50. Business — Writing of
health insurance. Proceeds—To increase capital and sur¬

scription by stockholders

.

\

Underwriters National Assurance

•

Jan. 22, 1963 filed 105,000 common to be offered for sub¬

None.

advertising and other corporate purposes.
Ave., Rahway, N. J. Underwriter

Office—1695 Elizabeth

equipment, inventories, .and new product lines.
Office—53 Cottage Place, Allendale, New Jersey.
Un¬
derwriter—Oppenheimer & Co., New York.

to

products

equipment,

tional

A

filed $1,000,000 of 6%% sinking fund de¬
bentures due 1978 and 100,000 class A non-voting com¬
mon shares to be offered in units of one $100 debenture
and 10 shares. Price—$220 per unit. Business—Company
has been licensed to conduct harness racing with parimutual betting. Proceeds — For debt repayment and
working capital. Office—3 Penn Center Plaza, Philadel¬
March 8, 1963

control.

Industries, Inc. (5/20)
March 28, 1963 filed $400,000 of 6% conv. subord. deben¬

Association

William Penn Racing

Nov.

Sternco

be with¬

drawn.

29, 1962 filed 67,200 common. Price—$3.50. Busi¬
ness—Design, engineering and manufacture of special¬

•

By amend¬

Co., New Orleans. Note—This registration will

Inc.

tal and other corporate purposes.

equipment, working capi¬
Office—300 Horn Rd.,
Underwriter—None.

—

$11).,Business—Operation of a chain of shoe
itores.
Proceeds—For debt repayment, expansion and
working capital. Office — 808 Dakin St., New Orleans.
Underwriter
Howard, Weil, Labouisse, Friedrichs &

Proceeds—For

ore.

balance

Inc.

ment (max.

advance royalties, payment of
mill, and construction. Address—405
Fidelity Bldg., Spokane, Wash. Underwriter — Mutual
Funds Co., Inc., Spokane.

Greenville,

Wiener Shoes

April 2,: 1962 filed 80,000 common. Price

April 26, 1963 filed 800,000 common/Price—40c. Business—Company plans to engage' in exploratory mining for

South Carolina.

33

(2033)

The Commercial and Financial Chronicle

.

Hamilton, Taylor

& Co., N. Y

* Coastal States Gas Producing Co.
May 15, 1963 filed $50,000,000 first mortgage bonds series
1983. Business — Acquisition, development and

A' due

operation of gas gathering systems, and the production
and sale of natural gas, crude oil and condensate. Pro¬
ceeds—For loan repayment, and working capital. Ad¬
dress—Petroleum Tower, Corpus Christi, Tex. Under¬
writers

—

Kuhn, Loeb

& Co.,'First Boston Corp., and

Paine, Webber, Jackson & Curtis, Boston.

'

^ Commonwealth Telephone Co. (6/3)
May 8, 1963 filed 71,460 common, to be offered for sub¬
scription by common stockholders on the basis of one
new share for each 10 held of record June 3, 1963. Rights
will expire June

18, 1963. Price—By amendment (max.,
'

Continued

on

page

31

34

(2034)

The Commercial and Financial Chronicle

Continued from page 33

Probable bidders: Kidder,
Peabody & Co.-White.Weld &
Co.- Equitable Securities
Corp.-Shields & Co,

derwriter

Eastman

—

Dillon, Union

Securities

&

Harriman

Stuart

Philadelphia and New York.

May 13, 1963 filed 45,000 class B common. Price — $40.
Company plans to acquire, organize, and
manage life,
accident and health insurance concerns.
—

Proceeds

—

East 40th

For investment in subsidiaries.

Office—114

St., New York. Underwriter—None.

Mountain,

Inc.

ski resort

near

Mt.

Ranier, Wash. Underwriter—None.

May 8, 1963
486

class A

("Reg. A")
common.

Price

and

For

preferred, $130; for
common, $400. Business—Sale of credit, life, accident
and sickness insurance. Proceeds
For paid-in capital
stock account, and working capital.
Address—Republic
Bldg., Seattle. Underwriter — Pacific Northwest Co.,
—

—

Seattle.

1963

cash

deposits

aircraft,

on

operating

it Union Light, Heat & Power Co. (6/26)
May 10, 1963 filed $6,500,000 of first mortgage
Proceeds—For construction and other
&

Main

bonds
corpo¬

Sts., Cincinnati.

Underwriters—(Competitive). Probable

bidders: Halsey,
Inc.; Blyth & Co. Inc.-First Boston Corp,
(jointly); Merrill Lynch, Pierce, Fenner & Smith IncKidder, Peabody & Co. (jointly); Equitable Securities
Corp.; White, Weld & Co. Bids—Expected June 26 (11
a.m.

prepare

Park Place,

Information

Meeting—June

19

(11

a.m.

May 6,

Business—A

ington St., Tucson, Ariz. Underwriter—None.

for

•—None.

■"'.v'b""

Bethlehem
Feb.

Steel

one

The following registration statements

gas for consumption in northeastern Massa¬
chusetts. Proceeds—For loan
repayment. Address—Hav¬

1963, Arthur B. Homer, Chairman, announced
will embark on a $750,000,000 capital
improvements program to be completed by 1965. '-He
company

said that

approximately two-thirds of the financing-for
will be generated internally and the bal¬
secured externally.
Mr. Homer added that this

program

be

not

required until at least 1964. Office

Broadway, New York. Underwriters—To
last public

sale of securities

.

"

'

'

■■

it Independent Shoe Discounters
Association, inc.
May 8, 1963 filed 325,000 common. Price—$1. Business
—Company plans to distribute shoes and related items
to franchised discount shoe stores.

/,

Proceeds—For work¬

$16,000*000 of 4%%
fered

engaged in

and

consumer

dent
ance.

advances

★ Livestock Financial Corp.
14, 1963 refiled 200,000
ness—An insurance
holding
the lives

insure

form

"

sub¬

of all

-

subsidiaries.

Underwriter—Charles
*ng— Expected

Price—$5, Busi¬

company whose subsidiaries
types of animals. Proceeds
To
Office—26 Piatt
St., New York

PJohn &
in early June.

Co., New York. Offer- "

★ Maust Coal & Coke
Corp. (6/10-14)
May 14, 1963 filed $5,000,000 of
convertible
debentures

by J. R.

due

subordinated

for; stock $17). Business—Mining, processing
keting of
bituminous coal. Proceeds

—

For

and

new

equipment. Office—530 Fifth Ave., New
derwriter—Eastman Dillon, Union Securities

mar¬

plants

York.

&

it Metetelic Corp.
May 6 1963 ("Reg. A") 75,000
common. Price—$1. Busi¬
ness—Manufacture of electrical

-indicating instruments
measuring and indicating D. C.
electricity. Proceeds
working capital, equipment and other
corporate
purposes. Office

rfor

For

83

Erna

Ave., Milford, Conn

writer—None.

★ Midwestern Industries
Corp.
30, 1963 ("Reg. A") 29,500

.Business—Manufacture

and

sale

ceeds—For debt
and

common.

Price—$10.
boats.

Pro¬

Address—Harlan,

common

to

Ind.

Un¬

(6/12)

be

offered

subscription by preferred and common
stockholders
Telephone & Telegraph
Co., former parent,
the
basis of 7

.

•

cumulative

preferred

stock

of¬

New York.

share, plus accrued dividends from
4.42%, by Kidder, Peabody & Co.,

»

Northwest

or one

common

Northwest

for each 8 P.

T.

&

of
on

Berns

Air

King Corp.

^°^jrj^on held of record June

4, 1963. Rights will expire
«Juiy 3, 1963. Price—By
amendment. Proceeds-—For sellmg stockholders, P. T. & T.
Office-1200 Third Ave.,
Seattle, Wash. Underwriter—None.

1963 filed $9j°OQ»000

199?' Proceeds—For

100,000 class A common offered
McCormick & Co., and H. M.

at

$7.50

share

per

by

Byllesby & Co., Chicago.

Chicago Union Station Co.
$10,000,000 of 3%% debentures, series A, due June
1,
1964-68 and $10,000,000 of 4%%
debentures, series B,

June 1,
1969-73 priced to yield from 3.60% to
4.50%, offered by Halsey, Stuart & Co.
Inc., Chicago.

Chicago Union Station Co.
$29,000,000 of 4%% first mortgage bonds due 1988 of¬
fered at 99j/2% to
yield 4.66% by Kidder, Peabody &
Co., Inc., New York.
Products

\
of first mortgage bonds
due
E,

Wash¬

Underwriters—(Competitive).

sell

to

money

Brothers

been

&

Hutzler.

if,
Corp.

t

reported that papers of incorpdrafor

this

in Washington,

company,

80,000

common

offered

at

$28.75

share by Lehman

per

Brothers, New York.
Halo

&

tion

common

offered at $9 per share
by A. G. Beck-*

munications

420,047

common

Securities

offered

at

$18.25

common

Kahn

&

per

share

by

Equi¬

Corp., Nashville.

Home Entertainment Co. of

300,000

offered

at

$100

for

share

per

offered

$1

by

Bernard

share

per

&

by

Charles

Co., Inc., New York.
Investment

share by Troster,

per

offered

at

$27

share

per

Weeks, Chicago and Robert

W.

by

Co.,

,

'

'
,

$30,000,000

&

Co.

of

series

accrued

4%%
first
and
refunding mortgage
R, due May 1, 1993 offered at 100.625%
interest to yield 4.34%
by Halsey, Stuart

Inc., New York.

FCC-approved
the

com¬

provision

remaining 50%. Price—Maximum
Business—Congress has authorised

share.

television

and

other

ground facilities

telephone,

communications.

tele¬

Office—

•

'

.

...

company

plans

to sell $8,000,000 of first
mortgage bonds in June 1963.
Office—408 W. 7th Street, Fort Worth, Tex.Underwriters

—(Competitive). Probable bidders: Halsey, Stuart/&
Co. Inc.; Salomon Brothers &
Hutzler; Stone & Webster
Securities Corp.

..-y
A-,;:'
Connecticut Light & Power Co.
Dec. 10, 1962 it was
reported that the company is con¬
sidering the issuance of about $22,500,000 of bonds in

1963

1964.

or

,

Proceeds—For construction. Address—Sel-

St., Berlin, Conn. Underwriters—To be named. The
last
public offering of bonds on Jan. 20, 1960 was
handled by Morgan Stanley & Co.-Putnam & Co.-Chas.

(jointly).

Connecticut Yankee Atomic Power Co.
?
April 23, 1963 it was reported that the 12 utilities which
own this new firm, have petitioned the SEC for
exemption from the Public Utility Holding Company Act
to permit the negotiated sale of
$55,000,000 of the firip's
bonds. The request has been
opposed by a major under¬
writer who wants the bonds to be sold at
competitive
was formed in December,
1962, to own and operate a 500,000 kw. atomic power
plant at Haddam Neck, Conn. Proceeds—For construction

$70-$80,000,000

piant.

Office—441 Stuart St., Bos¬

Underwriters—To be named.

Consolidated Edison Co. of New York, Inc.
26, 1963 the corppany stated that it will have .to

Feb.

raise

approximately $690,000,000 through the sale of
securities, to finance its five-year construction program.
Office—4 Irving Place, New York. Underwriters—To
.be
named.
was

The last

won

at

Other

public bond issue, in December, 1962,
competitive bidding by Halsey, Stuart & Co.
bidders

Consumers

April 24, 1963 it

were

Morgan

Stanley

.

Power

&

Co.,

and

Co.

reported that the company plans to
sell $20,000,000 of straight debentures in the second half
of

Tax-Exempt Bond Fund, Series 4

New York.

bonds,

to

with

Community Public Service Co.
Jan. 16, 1963 it was reported that this

Horn-

Baird &

120,000 .units offered initially at
$107.34 and accrued
interest to yield about
3.73% by John Nuveen & Co.,

and

issued

carriers,

First Boston Corp.

Inc.

Nuveen

be

Klingle Rd., N. W., Washington, D. C. Underwriters

ton.

Corp.
272,941 common offered at $3.50
Singer & Co., New York.

blower &

per

.—To be named.

•

at

Co., and B. W. Pizzini

common

will

half

company to provide satellites and
the
international transmission of

of the

Manchester Insurance
Management &

200,000

than

bidding. Business—Company

America, Inc.

$10

Co., Inc., New York.

common

II

common

that
the company's total shares can^be
held by these carriers, and no individual or
group rhay
hold oyer 10% of the
more

jointly

Holiday Inns of America, Inc.

M.

Series

cerns.

•

Co., Inc., Chicago.

table

public, firms that produce space explora¬
equipment- and other non-communications cbn-

W. Scranton & Co.-Estabrook & Co.

Lighting, Inc.

150,000
er

the

den

Co.

Virgina Electric & Power Co.

(6/12)

construction.,. Office—19
ington St., New Castle, Pa.




filed

3029

.

.

have

graph,

T.

common for each 8 P. T.
& T.

★ Pennsylvania Power Co.

was

-

k

Mortgage Guaranty Insurance Corp.
for

raise

—

Satellite

20, 1963 it

Inc.

Pacific

preferred

Communications

the

225,000

★ Pacific Northwest Bell
Telephone Co.
May 8, 1963 filed 13,013,969

'

4.52%

Under¬

repayment, equipment, product
develop¬
working capital.

derwriter—None.

.

of

yield

to

Plohn &

of pleasure

plans

—

Brothers-Salomon

Feb.

no

Laboratory Procedures, Inc.

April

ment

York.

Un¬

Co., N. Y.

Co.-Lehman

of

1,

Ekco

1983; also 200,000 common to be sold
Maust,, Chairman. Price—By amendment
(max.

and

New

due

common.

—

new

Hutzler,

com¬

to

&

April

sidiaries, and working caoital. Office—3430
Broadway,
Kansas City, Mo.
Underwriter—A. G. Becker &
Co., Inc.,
Chicago.

May

mortgage bonds due 1993 of¬
4.37% by Lehman Brothers

100.08% to yield
Salomon Brothers &

50,000 shares

financing; writing credit life, health and acci¬
insurance, and automobile physical damage insur¬
Proceeds—For loan
repayment,

it
to

Bids—Expected Oct. 3.

fered at $101.80 per

new

is

first

at

Alabama Power Co.

13, 1963 filed 173,433 common to be offered for
subscription by common stockholders on the basis
of

mercial

/ :

.

May

Business—Company

'

(10/3)

120 East 41st Street, New
(Competitive).
Probable bid¬
ders: Morgan Stanley & Co.-First Boston
Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith Inc.-White,
Weld & Co. (jointly); Halsey, Stuart & Co.
Inc.; Blyth

Underwriters

;

issued to

Alabama Power Co.

(6/4) v

share for each four held of record
aboqt June
4, with rights to expire June 26.
Price—By amendment.

Office

'

'

System, Inc.

construction.

handled
& Co.-, New

was

D. ,C. Company's common
voting shares, without par
value, will be divided into two series. Series I will be

and

Co.

Gas

tion

ing capital. Office—519 West California
Ave., Oklahoma
City. Underwriter—Parker, Bishop &
Hart, Inc., Okla¬
homa City.

^-Interstate Securities

de-

were

Offering
details, where available, will be carried in the
Monday issue of the "Chronicle."

erhill, Mass. Underwriter—None.

one

Columbia

25

be named. The

in May,

1955,
by Kuhn, Loeb & Co., and Smith, Barney
York.

York.

clared effective this week by the SEC.

of natural

''

Co.

26,

that the

for

Price—$33.50. Business—Purchase, distribution and sale

share'for

new

May 8. Rights will expire May
Price—$32. Proceeds—To increase capital and sur¬
plus. Office—64 Sutter St., San Francisco. Underwriter

May 6, 1963 the company stated > that
$25,000,000 of debentures in October

Effective Registrations

additional

an

one

of record

writer—None.

it Haverhill Gas Co.

*

■

(San Francisco)',.
the bank is offering

•

1963 ("Reg. A") 8,137 capital shares to be of¬
for subscription by stockholders on the
basis off
new share for each 19
shares held of record May 29.

or

31.

would

by stockholders. Price—$2.50.

reported that

was

Nelson Rd.

May 2,

?
2-9570

New York 7, N. Y.

stockholders the right to subscribe
82,500 capital shares on the basis of

ance

common to be offered for

1963 it

each two held

the

real estate investment
company. Proceeds—For develop¬
ment and sale of trailer park sites. Office—111 W.
Wash¬

fered

item

an

-

REctor

at

us

Bank of Tokyo of California

<

& Co.

EDST).

can

Prospective Offerings

ex¬

working capital. Office—215 International
City Bldg., Miami Springs, Fla. Underwriter—None.

Stuart

at 25

we

i

and

1993.

that

telephone

you

us

so

you'll find hereunder.

.

A") 30,000 common. Price—$10.
Business—Air transportation of
freight and passengers.

subscription

repayment, equipment and expansion.
Address—
(P. O. Box 868) Fort Wayne, Ind.
Under¬

write

("Reg.

it Western Fund
May 3, 1963 ("Reg. A") 114,800

April 29, 1963 ("Reg. A") $270,000 of 6% series E bonds
due June 15,1981 to be offered for
subscription by stock¬
holders of Hardware
Wholesalers, Inc. Price—$500 each.
Business—A real estate holding
company. Proceeds—For

Would

a.m.

EDST) at One Wall St. (47th floor), New York.

it HI. W. I. Building Corp.

debt

26,

rate purposes. Address—Fourth

810 $8 dividend preferred

know about it

it Saturn Airways, Inc.

April

due

it Family Life Insurance Co.

to

similar to those

EDST) at 300 Park Ave., New York. Information Meet¬
ing—June 10 (3:45 p.m. EDST) at 15 William
St., N. Y.

penses

May 1, 1963 ("Reg. A") 5,960 class A common to be of¬
fered for subscription by stockholders and bondholders
on
a pro rata
basis. Price—$50. Business—Operation of

&

(jointly). Bids—Expected June 12 (11

Proceeds—For

it Crystal

a

Brothers

Hutzler
(jointly); Halsey,
Co.; Merrill Lynch,'Pierce, Fenner & Smith
Witter & Co: (jointly); First Boston
Corp.-

Blyth & Co.

it Continental Reserve Corp.
Business

&

Inc.-Dean

Thursday, May 16, 1963

Do you have an issue you're planning to register?
Our
Corporation News Department would like

-

Co.-Salomon

Co.,

.

.

ATTENTION UNDERWRITERS!

(jointly);
Ripley & Co.; Lehman Brothers
Eastman
Dillon, Union Securities & Co.-Ladenburg, Thalmann &

Business — An independent telephone company
serving portions of eastern Pennsylvania. Proceeds—For
loan repayment. Office—100 Lake St., Dallas, Pa. Un¬
$29).

.

1963.

was

Office—212

W.

Michigan Ave., Jackson, Mich.
bidders: Halsey,
White, Weld & Co.-Shields & Co.

Underwriters—(Competitive). Probable
Stuart

&

Co.

Inc.;
(jointly); Harriman Ripley & Co. Inc.-First Boston Corp.
(jointly); Morgan Stanley & Co., Salomon Brothers &
Hutzler-Blyth & Co.-Lehman Brothers-Merrill Lynch*,
Pierce, Fenner & Smith Inc. (jointly). -■
y
Duke Power Co.

April 22, 1963 it was' reported that the company has ten¬
tative plans to issue
$50,000,000 of first mortgage bonds

in the first quarter of 1964. Office—30
Rockefeller Plaza,

Volume

Number 6264

197

.

.

The Commercial and Financial Chronicle

.

Illinois

New York.

Underwriters—(Competitive). Probable bid¬
Halsey, Stuart & Co. Inc.; First Boston Corp.;
Morgan Stanley & Co.; Stone & Webster Securities Corp.
ders:

Co.

(7/9)

was

—

—

Co.. New York.

(

'

Indiana

Bell

Telephone Co., Inc. (6/11)
March 4, 1963 it was reported that this A. T. & T. subsidiary plans to sell $20,000,000 of debentures in June,
V
marking its first sale of debt securities; Office—240 No.
for about 457,265 additional common shares on a l-for-20
Meridian St., Indianapolis. Underwriters—(Competitive),
basis. Proceeds—For loan repayment. - Office—101 Fifth
; Probable;»bidders:
Halsey, Stuart & Co. Inc.; Morgan
St., South, St. Petersburg, Fla. Underwriters—To be
Stanley & Co.; First Boston Corp.; White, Weld & Co.;
named. The last rights offering, in May 1959 was under¬
■Eastman Dillon, Union Securities & Co.-Kidder, Pea¬
written by Kidder, Pea body & Co., and Merrill Lynch,
body & Co. (jointly); Blyth & Co.-Lehman BrothersPierce, Fenner & Smith, Inc., New York
Merrill Lynch, Pierce, Fenner & Smith InC.-Salomon
Food Fair Properties, Inc.
Brothers & Hutzler (jointly). Bids—Expected June 11
May 11, 1962 stockholders authorized the company tc v (11 a.m. EDST) at 195
Broadway, New York. Informa¬
Florida

Power

Corp.

.

upon successful completion of its rate case now
pending with the FPC. Office—500 Griswolc. St., Detroit.

Underwriters—(Competitive). Probable biduers: Halsey,
Stuart &

12, 1963 the company announced plans to offer
stockholders, sometime in 1963, the right to subscribe

tion Meeting—June 6

will be ottered to stockholders tnrough subscrip¬
rights on a l-for-10 basis. Price—By amendment
Business—Development and operation of shopping cen¬

which

Indiana &

tion

ters. Proceeds—To retire

and purchase up
Kcciiiy

iviajui

hany
The

outstanding 6% preferred stock

U00

a.u

aiiiiiate.

May 6,
sale of

Philadelphia. Underwriter—To be named
rights offering in December 1957 was under¬
Eastman Dillon, Union Securities & Co.,

Corp.

April 3, 1963 Attorney General Robert. F. Kennedy
that

nounced

the

Justice

Department

had

out-of-court agreement with Interhandel, a

an

Iowa

Swiss hold¬

Jan.

control of the 540,894 class A and 2,050,000 class B
of General Aniline seized by the U. S. Govern¬

in

1942

as

a

German

asset.

The

stock

98% of the voting control of the company. Mr. Kennedy

ties

$200 mil¬
lion, the Government would receive about $140 million
and Interhandel about $60 million. The settlement
terms,
recently approved by Interhandel stockholders, also
must be approved by the U. S. District Court at Wash¬
ington, D. C. Business—Company is a leading domestic
producer of dyestuffs, chemicals and photographic ma¬
terials. Office—111 W. 50th St., New York. Underwriters
—r—(Competitive). Probable bidders: Blyth & Co.-First
Boston Corp. (jointly); Lehman Brothers-Kuhn, Loeb &
Co.-Glore, Forgan & Co. (jointly); Bache & Co.

•

holders.

mon

Gulf

States

Utilities

half

of

1963.

Office—285

.

1

it

was

Liberty Ave., Beaumont, Tex.

C.

this company plans

-

'

-

..

-f

^

1

^

t

.

■

.

.

Telephone Co.
1963, the company announced pians to sell
about $9,000,000 of common stock late in the third
quar¬
ter. Details have not been decided upon.
However, it is
expected that the common will be offered on a rights

basis to stockholders. Office—1130 Alakea

St., Honolulu.
Underwriter—Kidder, Peabody & Co., New York.
Hitachi, Ltd.
April 10, 1963 it was reported that this Japanese firm
plans to raise between $10-$20,000,000 in the U. S. by the
saie of A. D. R's in the third
quarter of 1963. SusinessT—
Company is Japan's largest manufacturer of electrical
equipment and appliances turning out over 10.000 dif¬
ferent products ranging from locomotives to transistor
radios.
Proceeds
For
expansion.
Address
—

Tokyo,

Japan. Underwriter—Dillon, Read & Co., Inc., New/York.




Lynch.

Power

&

16, 1963 it was reported that this company plans to
sell $10,000,000 of bonds in the fourth quarter. Office—
441 Stuart St., Boston. Underwriters — (Competitive)
Probable bidders:

Halsey, Stuart & Co. Inc.; First Bos¬
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.:
Eastman Dillon, Union Securities & Co.; Kidder, Pea¬
body & Co.; Blyth & Co.-White, Weld & Co. (jointly)
ton

25,

—

Hutzler-Merrill

Jan.

Hawaiian

March

&

Massachusetts Electric Co.

—

•'

Brothers

-

quarter. Office—900 Richards St., Hoxiolulu.
Un¬
Dillon, Read & Co. Inc., New York and
Dean Witter & Co., San Francisco.
w

Co.-Salomon

.

third

v

J.

Light Co.
Feb. 20, 1963 it was reported that this subsidiary
oi
Middle South Utilities, Inc., may issue $25-$30,000,000
V of bonds early in 1964. Proceeds—For construction. Of¬
fice—142 Delaronde St., New Orleans. Underwriters—
(Competitive.) Probable bidders: Merrill Lynch, Pierce,
Fenner & Smith Inc.- Kidder, Peabody & Co,-Harriman
Ripley & Co., Inc. (jointly); White, Weld & Co.-Blyth
& Co., Inc.- Shields & Co. (jointly); Halsey, Stuart &
1 Co.
Inc.;
First Boston Corp,-Glore, Forgan
& Co.
(jointly); Salomon Brothers & Hutzler-Eastman Dillon.
'Union
Securities
&
Co.-Equitable
Securities
Corp
(jointly).

to,sell about $14,000,000 of first mortgage uonds in the
derwriters

N.

bidders: Halsey,

Louisiana

Ltd.

reported that

of
plans to sell $10,000,000

Pierce, Fenner & Smith Inc. (jointly); Kidder Peabody
& Co.; Harriman Ripley & Co.

000,000 construction program. Office—176 Cumberland
Ave., Wethersfield, Conn. Underwriters — First Boston
Corp., New York; Putnam & Co., Hartford; Chas. W.
Scranton & Co., New Haven.

1963

Public -Utilities Corp.,

Underwriters—(Competitive). Prob¬
Stuart & Co. Inc.; White, Weld &
[ Co.; First Boston Corp.; Eastman Dillon, Union Securities
&

Hartford Electric Light Go.
April 30, 1963 the company announced plans to sell $15,$20,000,000 of securities in 1964 to help finance its $26,-

5,

investment

through invest¬
Japanese firms
Underwriters—Bache

Broad

Morristown,

able

Underwriters—(Competitive). Probable bidders: Stone
Corp.; Lehman Brothers-Equitable

March

diversified

30^year bonds and $9,000,000 of 25-year debentures in
the fall. Address—Madison Ave., at Punch Bowl Rd.,

Co.

Electric Co.,

closed-end

of

& Webster Securities

Hawaiian

Kidder.

Jersey Central Power & Light Co.
12, 1963 it was reported that this subsidiary

,

Corp. (jointly); Glore, Forgan & Co.-W.
Langley & Co. (jointly); Lee Higginson Corp.

bidders:

reported

March

General

(12

Securities

Probable

-

,

Mexico

(Government of)

April 5, 1963 it

was

reported that the Mexican Congress

had authorized the sale of $100,000,000 of bonds in other
countries. It is expected that the majority of them would
be sold in the U. S. Details

'not

been

decided

upon.

as to terms, timing, etc., have
Proceeds—For economic de¬

velopment. Underwriter—Kuhn, Loeb & Co., New York

Michigan Wisconsin Pipe Line Co.
March 12, 1963 the company stated that it is considering
the issuance of about $25,000,000 of bonds in the third

quarter, to refund a like amount of outstanding 6V4%
first pipe line bonds due June 15, 1977. Action is con¬

total

a

$9,000,000

bidders:

3, Mo.
Salo¬

Brothers &

Hutzler; Halsey, Stuart & Co. Inc. Bids
—June 5 (12 noon CDST) at above address.
National

Uni-Pac,

Inc.

March 27, 1963 it was reported that the
to file a registration statement
covering

company plans
150,000 common.
Price—$4. Business—The sale or lease of coin operated
vending machines. Proceeds — To redeem outstanding
debentures, and for other corporate purposes. Office—15 Peachtree
St., N. W. Atlanta, Ga. Underwriter—To

be named.
Nevada

»

.

,

Power Co.

April 16, 1963 the company announced plans to sell about
$10,000,000 of first mortgage bonds in Sept. Address—
Fourth and Stewart Avenue, Las Vegas. Underwriters—(Competitive): White, Weld & Co.; Eastman Dillon,"
Union Securities &
Co.-Kidder, Peabody & Co. (jointly);
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fen¬
ner

& Smith Inc.

:

<,

•

_

*<

Nevada Power Co.

April 16, 1963 the company announced plans to sell about
$4,000,000 of common stock in September.
Transaction
is subject to approval by State and Federal
regulatory
authorities. Address
Fourth and Stewart Ave., Las
Vegas. Underwriter—White, Weld & Co., New York. ■;
—

New

England Power Co.

16,

1963 it

was

reported that this

utility plans to

sell

$10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441 Stuart
St., Bos¬
ton. Underwriters — (Competitive). Probable bidders:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman BrothersEquitable Securities Corp. (jointly); Kuhn, Loeb & Co.;
Merrill Lynch, Pierce, Fenner & Smith
Inc.-Kidder,
Peaoody & Co.-White, Weld & Co. (jointly); First Bos¬
ton Corp.
(Preferred) First Boston Corp.; Dean Witter
&

St., New York.
& Co.; Paine, Webber, Jackson &
Curtis, and The NikkO
Securities Co., Ltd., New York.

at

Jan. 29, 1963 the company announced plans to sell
100,300 shares of preferred stock (par $100) in the second

Business—A

Office—25

the company plans
of equipment trust certificates. Office
Broadway, New York. Underwriters—(Competi¬
tive.) Probable bidders: Salomon Brothers & Hutzler;
21

Co.

company seeking capital appreciation
ments primarily in common stocks of

& Co. Bids

May

Service

was

that directors of the
Fund had authorized the officers to investigate the pos¬
sibility of a rights offering of common stock to stock¬

'

& Co. Inc. Bids—Expected
above address.

Public

Japan Fund, Inc."
April .18, 1963 it was

sell $6,600,000

EDST)

Iowa

Co.; Eastman Dillon,
Brothers; Blyth & Co.

.

—39

noon

&

Japan - (Government of)
May 1, 1963 it was reported that the Government plans
to sell an additional
$35,000,000 of external loan bonds
in the U. S.
during the fiscal year ending March 31, 1964.
.It is expected that the majority would be sold b*y Dec.
31, 1963. Underwriter—First Boston Corp., New York. 'V;

—

Halsey, Stuart

Peabody

Peabody & Co.-Blyth & Co. Inc. (jointly); Eastman Dil¬
lon, Union Securities & Co.; Equitable Securities Corp.
White, Weld & Co.; First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Smith Inc.

Great Northern Ry. (5/21)
March 2, 1963 it was reported that
to

Kidder,

derwriters—(Competitive).

Bldg.,
Underwriters
(Competitive). Probable bid¬
(Bonds): Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co. (jointly); Halsey,
Stuart & Co. Inc.; First Boston Corp.; Harriman Ripley
& Co.; Morgan Stanley & Co.; Lehman Brothers. (Pre¬
ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Co.-Equitable
Stanley

reported

reported that the company plans to
offer $12,000,000 of first mortgage bonds in September.
Address—Orpheum-Electric Bldg., Sioux City, Iowa. Un¬

ders:

(jointly); Morgan
—Expected Nov. 7, 1963.

Corp.;

May 6, 1963 it

Proceeds—For construction. Office—270 Peaciitree

Corp.

was

Union Securities & Co.; Lehman

Georgia Power Co. (11/7)
Jan. 22, 1963 it was reported that this subsidiary of The
Southern Co., plans to sell $30,000,000 of first mortgage
bonds and $7,000,000 of preferred stock in November.

Securities

1963.it

installment of

Underwriters—(Competitive). Probable

Jan.

Light Co.

fice—823 Walnut St., Des Moines. Underwriters—(Com¬
petitive). Probable bidders: First Boston Corp.; White,
Weld & Co.; Halsey, Stuart & Co. Inc.; Equitable Securi¬

represents

said that if General Aniline should be sold for

Atlanta.

16,

Power &

that the company plans
to sell $10,000,000 of bonds, in late 1963 or early 1964. Of¬

shares
ment

Co.

RR. (6/5)
it was reported that this road plans the
$3,540,000 of equipment trust certificates in June.

1963

issue. Address—Missouri Pacific Bldg., St. Louis

New York.

an¬

reached

designed to settle the 20-year old dispute

company,

over

Dillon, Union Securities & Co.; Harriman Ripley
Inc.; First Boston Corp.; Merrill Lynch, Pierce,
Fenner & Smith Inc.-Blyth & Co.-Lehman BrothersSalomon Brothers & Hutzler (jointly). Bids—Expected
Aug. 6 at American Electric Power Co., 2 Broadway,

Offering—Indefinitely postponed.

General Aniline & Film

of

man

&

by

New York.

(8/6)

reported that this subsidiary of
Co., Inc., plans to sell $45,000,bonds due 1993. Office—2101 Spy

was

Inc.; First Boston Corp.; Blytn & Co.

Pacific

This will be the second

Run

Last Alleg¬

Oince—226

Michigan Electric Co.

1963 it

address

first mortage
Ave., Fort Wayne, Ind. Underwriters—(Competi¬
tive). Probable bidders: Halsey, Stuart & Co. Inc.; East¬

to $6,000,000 convertible debentures ol

cuip.,

12,

same

American Electric Power

Ave.,
last

written

ing

March

(2:30 p.m. EDST) at

Co.

Missouri

March

Issue 756.000 shares of a new convertible preferred stock

35

tingent

reported that the company plans
to offer $50,000,000 of first mortgage bonds due 2003.
Proceeds—To repay advances from A. T. & T., parent.
Office—212 W. Washington St., Chicago. Underwriters—(Competitive). Probable bidders: Halsey, Stuart & Co.;
Glore, Forgan & Co.-Eastman Dillon, Union Securities &
Co.; Mbrgan Stanley & Co.; Blyth & Co.-Lehman Broth¬
ers-Merrill Lynch, Pierce, Fenner & Smith Inc.-Salomon
Brothers & Hutzler. Bids
Expected July 9 at 195
Broadway, New York.

Freight Ways, Inc.
Oct. 9, 1962 the ICC authorized the company to issue
100,000 common. Price—By amendment (min. $5). Busi*.
ness—A motor vehicle common carrier operating in nine
eastern states from Vermont to Virginia. Proceeds—For
working capital, debt repayment and advances to sub¬
sidiaries., Office
Moonachie Ave., Carlstadt, N. J
&

Telephone

April 30, 1963 it

Eastern

Underwriter—Allen

Bell

(2035)

C

j.-Smith, Barney & Co.-Wertheim & Co. (jointly);
Corp.-Kidder, Peabody & Co.-Leo
Higginson Corp.-White, Weld & Co. (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith, Inc.
Equ cable- Securities

New York Centra! RR (5/23)
April 23, 1963 the company announced plans to sell S2,700,000 of equipment trust certificates in May. Office—466 Lexington
Ave., New York. Underwriters—(Compe¬
titive). Probable bidders: Salomon Brothers & Hutzler;

Halsey, Stuart & Co. Inc. Bids—May 23 (12
[
[

at above address."

Kew

York

State

Apul 3, 1963 it
sell

tion..

noon

EDST)

•

Electric &

Gas

Corp.

reported that the company plans to
$20,000,000 of debt securities to finance its construc¬
was

program for

1964 and

1965. Office—108 East. Green

St., Ithaca, New York. Underwriters — (Competitive).
Probable bidders: Kidder,
Peabody & Co. - Salomon
Brothers & Hutzler (jointly); First Boston Corp.-Glore,
Forgan & Co. (jointly); Halsey, Stuart & Co.; Harriman
Ripley & Co.; Blyth & Co.
^
"

Nippon Telegraph & Telephone Pubilc Corp.
April 16, 1963 it was reported that the company plans to
sell $20,000,000 of bonds in the United States in. the
third quarter of 1963.
Business — Nippon Telegraph,
wholly-owned by the Japanese Government, furnishes
domestic telephone and telegraph services, without com¬
petition, in Japan. Proceeds—For expansion. Office—
Tokyo, Japan. Underwriters—Dillon, Read & Co.; First
Boston Corp.., and Smith, Barney & Co., New York.
Norfolk & Western Ry.

(6/24)
reported that this road plans to sell
about $4,300,000 of 1-15 year equipment trust certificates
April 8, 1963 it
in

June.

was

Office—8

North

Jefferson

St.,

Roanoke.

Va.

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Brothers & Hutzler. Bids—
June 24

(12

noon

EDST).

Northern Illinois Gas Co.

(7/16)
April 9,< 1863 the company reported that it plans to sell
$20,000,000 of first mortgage bonds due 1988. Proceeds—
For

construction.
Office—615 Eastern Ave., Bellwood,
Underwriters—(Competitive).
Probable
bidders:
First Boston Corp.; Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.-Equitable Securities Corp.; Glore, Forgan 8c
Co. Bids—Expected July 10.

111.

Northern
Jan.

sell

Natural Gas Co.

16, 1963 it
$30,000,000

was

of

reported that this company plans to
securities sometime in 1963 or

debt

1964. Office—2223 Dodge St.,
be named. The last sale

To

1960

was

handled

on

a

Omaha, Neb. Underwriter—

of debentures on Nov. 16,
negotiated basis by Blyth &• Co.,

Inc., N. Y.

it Northern States Power Co (Minn)
May 14, 1963 it was reported that the company plans to
offer about 771,110 additional shares to stockholders on
a l-for-20 basis in 1964, to raise an estimated $25,000,000.
Office—15 South Fifth St., Minneapolis. Underwriter—
To be named. The last rights offering in July 1959 was
underwritten

by Merrill Lynch, Pierce,
Inc., New York.
•

Northern States Power Co.

Fenner & Smith

(Minn.)

May 14, 1963, it was reported that this company plans
to sell $15,000,000 Of first mortgage bonds due 1993 in
the last half of the year. Proceeds — For construction.
Office—15 South Fifth St., Minneapolis. Underwriters—
(Competitive): Probable bidders: Halsey, Stuart 8c Co.
Inc.; First Boston Corp.-Blyth & Co. (jointly); Merrill
Continued

on

page

36

36

(2036)

The Commercial and Financial Chronicle

,

Sears, Roebuck & Co,

Continued from page 35

•

Feb.

Pierce, Fenner & Smith Inc.-Kidder, Peabody &
Co.-White, Weld & Co. (jointly); Equitable Securities
Corp.-Eastman Dillon, Union Securities & Co. (jointly);
Lehman Brothers-Riter & Co. (jointly).
Lynch

mutual

fund

until

it

received

clarification

of

an

stockholders

77,500

SEC

two

ruling which "has been construed by some to mean that
registered investment companies could not purchase

Power Co.
Sears' stock or would be required to divest themselves
16, 1963 it was reported that this company plans - of it, if Sears' itself owned a mutual fund." Earlier, All¬
to sell $10,000,000 of bonds in the fourth quarter. Office : state said that the fund would be in operation late in:
1963 on a "very small scale," and would be started on
—215 South Cascade St., Fergus Falls, Minn. • Under- •
Otter Tail

r'>

Pacific Power & Light Co.

Nov.

» -

;

-

-

>

Sixth Ave., Portland, Ore. Underwriters—(Competitive).
Probable bidders:
Lehman Brothers-Bear, Stearns ■ &

Chicago. Distributor—Allstate En*
Chicago.;
v
■'

terprises, Inc.,

16,

offer

it

1963

was

stockholders

the

(jointly);- Halsey,
Stuart & Co. Inc.; Blyth & Co.-White, Weld & Co. (joint- -;
ly); Eastman Dillon, Union Securities & Co.-Kidder, :
Peabody & Co. (jointly).
4

reported that the bank plans to
right to subscribe: for an addi¬

Pacific

Co.

Power

Sierra Pacific Power Co.

May 6, 1963 it

Oct.

Cc

15,

and

1959

handled

was

Drexel

Co.

Morgan

Stanley

&

Other

bidders were: Halsey,
Corp.; White, Weld &
Co.
The last sale of common was a rights
offering on
June 2, 1959, underwritten by Drexel &
Co., and Morgan
Stanley & Co.
,

Stuart

&

Co.

&

by

Inc.;

First Boston

it; Potomac Edison Co.

May, 14,

1963

it

reported that this subsidiary of
Allegheny Power System, Inc., plans to raise $12,000,000
was

April

May 8, 1957 was to a group headed by W. C. Langley &
Co., and First Boston Corp. Other bidders were: Halsey,
Stuart & Co. Inc.; Equitable Securities
Corp.; White,
Weld & Co.-Shields & Co.
(jointly); Lehman BrothersEastman Dillon, Union Securities & Co.-Harriman
Rip¬
ley & Co.-Merrill Lynch, Pierce, Fenner & Smith, Inc.
(jointly).
'
;/",r
■
^
A /..;/ \

it

ceeds—For

Union

2736,

in

the

Terminal

by the end of 1964. Office—315 N. 12th Blvd., St, LouisProbable bidders: (Pre¬
ferred): First Boston Corp.; Dillon, Readi& Co., Inc.;,

Underwriters—(Competitive).

Lehman

Brothers; White, Weld & Co.; Blyth & Co.,.
Inc. (Bonds): Halsey, Stuart & Co.
Inc.; Lehman Brothers-Blyth & Co., Inc. (jointly); White, Weld & Co.Shields & Co. (jointly); First Boston Corp.

Virginia St.,

Washington Gas Light Co.
Au^. i, 1962 it was reported that this company plans to>
$12,000,000 of 25-year bonds, in the second quarter

sel
of

sell

1963 it

(6/18)
reported that this company plans
of first mortgage bonds due 1993.

was

$40,000,000

Proceeds

—

For construction.

Office

—

80

Park

Place,

Newark, N. J. Underwriters <— (Competitive). Probable
Halsey, Stuart & Co. Inc.; First Boston Corp.;
White, Weld & Co.-Blyth & Co.-Goldman, Sachs & Co.-*
Hairiman Ripley & Co.
(jointly); Lehman BrothersMerrill Lynch, Pierce, Fenner & Smith Inc.-Salomon
bidders:

Brothers & Hutzler

(11

(jointly). Bids

Expected June 18
EDST) at above address/ Information Meeting''
EDST) at One Chase Manhattan Plaza,

a.m.

—

Office—1100 H. St., N. W,,-Washington, D. C.
.rwriters—(Competitive): Probable bidders: East¬
man
Dillon, Union Securities & Co.; Equitable Securities
Con
Kidder, Peabody & Co.; First Boston Corp.; Hal-

,

♦

—June 13 (2 p.m.
New York.

Rochester Telephone Co.

May 7, 1963 the
000,000
may

company announced

of debentures

do

so

Proceeds

—

earlier
For

in

if

the

market

construction.

first

plans to sell $16,quarter of 1964, but

fourth

April

conditions

Office

—

favorable.

are

10

Franklin

St.,

Rochester, N. Y. Underwriters—(Competitive). Probable
bidders:
curities

First Boston Corp.;

Eastman Dillon, Union Se¬
Co.-Kidder, Peabody & Co. (jointly); Kuhn,
Co.; Halsey, Stuart & Co. Inc.

&

Annex, Los

Address—P.

Angeles

Probable

54,

Calif.

O.

Loeb &

Under¬

Western

bidders:

March 6,

Racine Hydraulics and

Dealer-Broker

Inc.—Report—Splaine

Recommendations

erick,

Inc.,

Milwaukee

800

North

4

(12

noon

at above address.

Southern

Union

1963

maturing
years

the
a

serially,

Telegraph Co.
announced that it had ar¬
total of $100,000,000 by sale of notes;
one-third at the end of each of the-

&
•

(10/8)
19, 1963 it was reported that this company
plans to sell $15,000,000 of bonds later this year. Office

authorized

North Marshall St., Milwaukee/ Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & CoInc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; East¬
man
Dillon, Union Securities & Co.-Salomon Brothers;
& Hutzler (jointly); First Boston Corp.; White. Weld &
Co.; Kidder, Peabody & Co. Bids—Expected Oct. 8.

the

• Yale Express System, Inc.

provide for additional capital expenditures. Offices—14th

Richmond,

York. Underwriters
Boston

Corp.;

Co.-Salomon

Va.,

70

and

Pine

May 14, 1963, Gerald W. Eskow, President, told the an¬
meeting of stockholders that, "preliminary discus¬

St., New

nual

(Competitive). Probable bidders:

—

Eastman

Dillon,

sions

& Hutzler (jointly);
Halsey,
Kidder, Peabody & Co.-White, Weld

Fred¬

Marshall,

Redwing Carriers, Inc.—Report—

beeri

held

Company—The

Illinois Company
Incorporated, 231 South La S'alle

Mr. Evans

Auerbach With

■...

States General Life Insurance Co.

Rolland

of the "New York Stock

memorandum

Moore

8
a

Pullman.

on

Corporation Limited—An¬

alysis—Greenshields 7Incorpo¬
rated,

507

Place

d'Armes, Mont¬

Dallas 1, Texas.
>
Company Ltd.—
Analysis—Annett & Company Transamerica
Corporation

Paper

St.

Regis Paper Co.—R

Fahnestock

Morrison

New York

Company Inc.

•—Bulletin—De Witt Conklin

ganization,

Inc.,

120

New York 5, N. Y.

Olin

Mathieson

Or¬

Broadway,

a

Chemical

Corpo¬

ration—Analysis—Reuben Rose &
Co., 115 Broadway, New York 6,
an

4?f Celanese Corp.




analysis

H.

Hanover

Square,

e v

i

e w—

Co., 65 Broadway,
6, N. Y. Also available

Capital

Business

panies

—

stein

&

Study

Co.,

Corporation
Investment

—

and

Com¬

Gerstley, Sun-

211

South

Broad

Street, Philadelphia 7, Pa.
Sears Roebuck &

emphasis

of

&

review of Deere & Co.

Science
Small

.

N. Y, Also available is

is

view—D.

N.

real, Que., Canada.
Knudsen

—Memorandum—Parker, Ford &
Co., Inc., 1 Wall
Company, Inc., Vaughn Building,

Limited, 220 Bay Street, Toronto,
Ont., Canada;

on

Co.—Study with

Allstate

Insurance

in

re¬

formerly Resident

was

Manager for Bache & Co.

W. E. Hutton & Co.

Street/New York 5, N. Y.

page

bankers"

Street, Chicago 4, 111.

Continued from

Also available is

investment

Underwriter—To be named.

Co., 14 Wall
Street, New York City, members

York 38, N. Y.

with

ing, truck leasing, etc. Office—460 12th Ave., New York.

(jointly).

Machinery

have

gard to arranging for long-term financing. Business—A
holding company for subsidiaries engaged in motor ve¬
hicle freight transportation, nationwide freight forward¬

Union* Securities

Brothers

Stuart & Co. Inc.;

Wisconsin Public Service Corp.

—1U29

stockholders

St.,

St., New York. Underwriters—Kuhn, LoebCo., Inc., and Lehman Brothers, New York.

March

EDST)

mortgage 3%% bonds of Atlanta & Charlotte Air Line
RR.; reimburse the treasury for capital expenditures and
Canal

1964, 1965 and 1966. It plans to refinance the serial,

A.

&

newly-formed

—6U Hudson

Railway Co.

1963

2^ Wis.

Kidder

this

company

And Literature

M.

that

notes by issuance of long-term debt securities; but has;
not determined the terms or timing of the action. Office

company to
issue $50,000,000 of general
mortgage bonds. Proceeds—
To acquire stock of Central of
Georgia Ry.; retire first

&

reported

was

ranged to borrow

(6/4)

Halsey, Stuart & Co. Inc. Bids—June

& Co.

it

U. S. Natural Gas
Corp. Address—9601 Wilshire Blvd.,
Beverly Hills, Calif. Underwriter—None.

Box

April 24, 1963 it was reported that this company plans
to sell $8,100,000 of. equipment trust certificates. Office
—165
Broadway, New York. Underwriters—(Competi¬
tive).. Probable bidders: Solomon Brothers &
Hutzler;

&

17, 1963

tion

.

.

First

,

gas pipeline company plans to file a, registra¬
statement
covering an undetermined number of
common shares to be offered
initially to stockholders of

Co. of Calif.

quarter.

Southern Pacific Co.

and

.

Western Transmission Corp.

White, Weld
Co.; Blyth & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith Inc.;
Halsey, Stuart & Co. Inc.; First Boston
Corp.
:

15,

Stuart & Co. Inc.

se>,

&

Jan.

1963.

Una

natural
Gas

writers—(Competitive)

Public Service Electric & Gas Co.

March 4,

Co.

1963 the

company stated that it plans to issue$20,000,000 of preferred stock and $40,000,000 of bonds

.

to

expansion. Office—3100 Travis St., Houston.

Electric

March 19,

was reported that this subsidiary of Paci¬
Lighting Corp., plans to sell $27,000,000 of first mort¬

bonds

.-V

Pipe Line Co.

Securities Corp., New York.

Jan. 2, 1963 it
gage

'V->' \

Underwriters—White, Weld & Co., and Stone & Webster

was

Southern Counties

fic

handled by Kuhn, Loeb & Co. Offer¬

was

May 6, 1963 it was reported that the. company plans to
$30,000,000 of debt securities in September. Pro¬

(7/17)

reported that this subsidiary of
Pacific Lighting Corp., pians to sell $40,000,000 of first
mortgage bonds. Proceeds—To refund outstanding 5Vs%
bonds due July 1, 1983, and for construction. Office—810
South Flower St., Los Angeles. Underwriters—
(Compe¬
titive). Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.-Eastman Dillon, Union Securities &
Co.; Blyth & Co.-Merrill Lynch, Pierce, Fenner & Smith
Inc. (jointly). Bids—Expected June 25.

in

1964, but has not determined the type of security to
be-sold. Office—200 East Patrick St.,
Frederick, Md.
Underwriter—To be named. The last sale of bonds on

22, 1963

•

issue

'

by bank loans to be converted into permanent.-, share for each 10 held. Office—220 South
financing, from time to time, through the sale of bonds " Reno, Nev. Underwriter—None.
anu common stock. Office—1000 Chestnut
Sw, Philadel¬
• Southern California Gas Co.
(6/25)
phia. Underwriters—To be named. The last sale of bonds
on

<

Corp.; White, Weld & Co.; Halsey, Stuart &

Transcontinental Gas

common

obtained

each

for

March, 1927,

reported that the company plans to
right to subscribe for about 172,shares on the basis of one new

was

340 additional

-

•

ing—Indefinite.

offer stockholders the
.

for

writer—To be named. The last issue of Tokyo bonds in

(7/17)

'

•

share

new

Tokyo (City of)
May 1, 1963 it was reported that the Diet had authorized
the sale of $20,000,000 City of
Tokyo bonds in the U. S.
during the fiscal year ending March 31, 1964.
Under¬

—

New York.

•.

Securities

May 6, 1963 it was reported that this company plans
Pennsylvania Power & Light Co.
to sell $8,000,000 of debentures. Proceeds — To refund
March 18, 1963 the company stated that it expects to sell
$75,000,000 of bonds in the period 1963 through 1967. < $3,340,000 of outstanding 5%% debentures due July 1,
Proceeds
For construction and the retirement of $8,- A 1985, and for construction. Office:—220 South Virginia
St., Reno, Nev. Underwriters—(Competitive). Probable
000,000 of maturing bonds.
Office—9th and Hamilton
bidders: Kidder, Peabody & Co.-White, Weld & Co.
Sti;.,! Allentown, Pa. Underwriters—To be named. The
la^Sale of bonds on Nov. 29, 1961 was won at com¬
(jointly); Stone.& Webster Securities Corp.-Dean Wit¬
ter & Co. (jointly); Halsey, Stuart & Co.
petitive bidding by White, Weld & Co., and Kidder,
Inc.; Salomon
Brothers & Hutzler. Bids—Expected July
17, 1963. In¬
Peabody & Co.,
Other bidders were Halsey? Stuart &
formation Meeting—July 12 at 90 Broad
Cc. Inc.; First Boston Corp.-Drexel & Co. (jointly),
St., (19th floor),
Philadelphia Electric Co.
March 5, 1963 the company reported: that it plans to
spend $478,000,000 for construction during the five-year
period 1963-67. It added that about half the money re¬
quired will be generated internally, and the balance

one

Co. Inc.

'

Sierra

of

an application with the
authority to" construct additional pipe line fa¬
cilities estimated to cost $56,000,000. Address—Tennessee
Bldg., Houston, Texas. Underwriters—Stone & Webster

141,519 common shares on a l-for-9 basis. ; The
proposal will be voted on by stockholders in mid-June
and the date of the meeting would also be the record
date for the rights offering.
Address—Huntington, N. Y.
Underwriter—M. A. Schapiro & Co., New York.

■

basis

the

on

company stated that it had filed

FPC

tional

Hutzler

&

granted. Office—

was

shares

held of record May

^ Tennessee Gas Transmission Co/" / '
1. ;
May 15, 1963 it was reported that the company is plan¬
ning to issue debentures by mid-summer. Earlier, the

'Security Rational Bank of Long Island

>

*

Brothers

approval

as

(San Francisco)
reported that the bank is offering
right to subscribe for an additional

was

the

—None.

So. Homan Ave.,

April

to issue $30,000,000

Co.-Salomon

925

•'

it was reported that the company plans
of first mortgage bonds in June 1963.Proceeds—To repay outstanding loans. Office—-920 S. W.
1962

28,

state-by-state basis

a

Thursday, May 16, 1963

10. Rights will expire June 21.
Price—$32. Proceeds—To increase capital and surplus.
Office—365 California St., San Francisco.- Underwriter

Jan

writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co. Inc.; Glore, Forgan &
Co.-Kal-y
man & Co. (jointly); White, Weld & Co.

.

.

Sumitomo Bank of California

May 15, 1963 it

19, 1963, Allstate Enterprises, Inc., subsidiary, an¬
nounced that it had delayed its plans to form a new

.

Y.

Blair

&

E.

Re¬

have

Company, 5

with

New

—

York

Also

available

are

Lincoln

National

Life

4,

reviews

Hutton

Insurance

United

Pacific

lysis—Hinton

a

corporated,

bach, Jr.

of

as

John

Exchange,
association

Hone

Auer¬

Manager of the for¬

eign relations divisions.

Corporation—An-

1411

Granat

Fourth

In-

Avenue

Woolworth

dum—Ross

&

Co.—Memoran¬

Hirsch, 120 Broad¬

New York 5, N. Y.

members

New

York

S'tock

change has announced the

&

ing of

a

Ex¬

open¬

office at Liberty at

new

17th Streets.

Raymond S. Stevenson has been
appointed Resident Manager.

*

KANSAS
&

was

CITY,

Mo.—Reinholdt

Gardner, members of the New
Stock

opened

a

Exchange,

branch

office

have
at

Baltimore Avenue under the

agement

Farmers

:

of William

Leon

912

man¬

Evans.

•

Pa.

National---Bank,
and

for

over

Penns10

years

active in\the investment field*

Holmes

the
in

He

for 20 years President of the

was

burg,

Kansas City Branch

York

F. W.

Pa. —Bioren

Co., Philadelphia and New York,

*

Reinholdt & Gardner

Company.

Jones

ALLENTOWN,

Insur-,

Building, Seattle 1, Wash.

way,

the

announced

them

New Bioren Branch

&

Company and United States

ance

Life

W.

S.

Gangewer also joins
investment

98-year-old
the

been

Allentown

firm

he has

actively engaged in the in¬

vestment
years.

Office;

profession
.

for

over

40

Number 6264

197

Volume

...

.

Chronicle

The Commercial and Financial

.

The following

Indications of Current

week

Latest

castings
production based

ingots

Steel

of

Index
for

and

1957-1959—,—

—

May 11

136.8

INSTITUTE:
condensate output—daily

oil

and

of
.—May

132.3

136.6

(bbls.)-_i——May
transit, in pipe lines
.Finished gasoline
(bbls.) at"
1
1—-May
Kerosene "A bbls.) at
May
Distillate - fuel oil: fbbls. )
--May/'
ResidUal fuel oil (bbls.) at
May
•'Unfinished oil* (bbls.) at.^_.i._j.——-A_-————--May

7,492,610

8.096,000

,

3
3
3
3

8,148,000
28,344,000

8,553,000
28,775,000
3,474,000

Revenue
Revenue

,

2,965,000
12;656,000
'•4,741,000

12,920,000

202,684,000

205,408,600

26,542,000
88,454,000
43,778,000
83,8061000

s

•26)403,000

5,352,000

.8.094,000

'

~

_

Intercity

28,511,000

"

2,456,000
13,857,000 Zk "12,177,000
5,075,000
> 5,687,000

2,954,000 ;•

3

3
3
3

.

(tons)————————-.-May
anthracite] (tons)—--——^
—i—May

Pennsylvania

lignite

and

coal

87,204,000

>

83/330,000

39.358.000

42,919,000

smelter output

—

8,900,000
365,000

4

4

v..' 576.839

BUSINESS

AVERAGE=100_—.

Electric

(in

output

/

.

546,065

■••

:/

587,413

521,408

*9,065,000

7,615,000

8,233,000

347,000

308,000

BY

522,578

HRON

|

(000's

:

,

U.

steel

345,000

148.100

156,100

218,900

138,700

State

145.500

147,400

133,900

9,400

10/600

71,500

4,800

Private

16,279,000

16,325,000

15,445,000

322

306

360

Pig

iron

Oven

steel

Scrap

(E.

PRICES

1METAL

Electrolytic

M.

&

at_

retmery
Export refinery at

Lead .(New York)

(Si/Z

Lead

•

Louis) at
at)
St. Louis)

(East

Aluminum

MOODY'S

_

(primary pig, 99.5%)

tin

Straits

York)

(New

at-

at

x
;

._

—

$28.83

$28.17

$27.17

Automobile

28.475c

28.425c

28.425c

10.500c

10.500c
10.300c

9.300c

12.000c

12.000c

12.000c

12.000c

A

—_

—

Raiiroad
.

11.500C

11.500c

22.500c

24.000c

Final

116.875c

112.125c

116.875c

Industrials
MOODY'S
U.

_—

_

Group

——„

YIELD DAILY

BOND

*•.. Average

91.91

90.77

91.05

89:78

89.37

89.37

89.37

84.04

87.05'

87.05

90.34

90.20

90.34

90.20

90.06

90.34

87.05

>

84.55

Baa

Stocks

Cake

U

Railroad

,

•/.'"• .•••/.'•;/

.

v,

.

.

"

;

COMMODITY

MOODY'S

•

•

;

;
.___

—

89.92

3.81

3.67

Produced

4.47

4.58

Shipped

4.23

4.21

4.36

4.34

4.43

Stocks

4.46

4.46

4.46

4.62

4.86

4.86

4.99

Shipped

4.82

/r;

-

:

-

■;

-■

••••

-

•

•

'

4.39

4.42

365.0

373.2

379.6

383.9

(tons)—

of

orders

.

_

383,608

399,118

HOUND-LOT

——

FOHf

TRANSACTIONS

ACCOUNT

OF

367,605

366,982

93

95

97

4

528,098

482,871

499,869

504,111

111.96

*111.95

111.78

111.79

Total

sales

Other

sales

Total

sales...

;

transactions

Other

Apr. 19

initiated

Apr. 19

„■

off

2,886,420
667,290

405,780

2,496,410
3,393,080

2,262,030

1,715,910

1,562,310

2,929,320

2,121,690

1,984,570

422,260

750,460

548,220

sales

Apr. 19

44,910

35,800

—Apr. 19

89,300
669,720

48,900

sales

549,160

441,890

188,940

Apr. 19

759,020

598,060

486,800
850.838

642,748

110,610

102,710
691,358

Total

Total

purchases

—

sales—

^

___,

Other transactions

initiated

purchases
Short sales

130,800

*298,000

AVERAGE

♦171,000

156,500

157,300

*142,700

170,300

YIELD—100
April:

of

!_Z

3.26

2.42

2.45

3.25

773,714

723,744

691,838

648,143

617.707

127,368

125,571

106,037

$1,086,393

,

3.19

819.206

.-.

5.17
3.02

3.15

(24)-—

3.06

3.11

Tel & Tel.)

Amer.

4.73

3.07

$1,143,401

$971,185

Other

Total

U.

IN

S.

ASSN.—Month of April:

of

L

vehicles

of

cars

passenger

trucks

and

motor

coaches

ESTATE

Savings and loan associations——
companies

banks.!

savings

Mutual

100,392

78,887

,408,383

456,871

374.297

123,174

140,945

114,467

88.472

companies————

trust

and

—

Individuals

DEALERS

EXCHANGE

sales

Number
Dollar

of

—

SPECIALISTS

AND

ON

N.

5,419,272
1,154,790

4,412,031

2,695,168

7,470

,3,180

841,178

561,300

560,770

35,050

33,860

34,100

4,353,350

2,917,787

2,442,608

28,705

27,420

27,580

5,508,140

3,879,810
4,720,988

3,479,087

3,003,378

6.440

6,520

.

(in long tons):
in beginning

Stocks

Stocks
Total

Customers'

short

other

Apr. 19
.Apr. 19

sales..

Apr. 19

__

Apr. 19

Dollar value...
Round-lot
Number

dealers—

shares—Total

sales—

...

Short sales
Round-lot

TOTAL

FOR

Apr. 19
—Apr. 19

STOCK

AND

ACCOUNT

SALES

ROUND-LOT

OF

ON

THE

STOCK

MEMBERS

868,100

?■■■

1,347,860

$71,157,663

1,891,995

20,244

$95,107,378

1,194,575
$61,593,823

737,150

605,030

:

N.

868,106

Apr. 19

445,430

Total

S.

737/150

665~030

335,360

378,670

286,790

474,640

Total
at

time

any

Total

U.

S.

1,384.250

.1.061.830

858.140

25,475.700

17.041/110

26,859,950

21,618.940
22,680,770

12,165,000
12,880,730

17,899,250

DEPT. OF

May

7

99.9

99.9

99.9

96.8

commodities

than

....

farm

and

foods

7

94.8

May

7

99.9

100.0

99.2

88.2

88.5

87.6

93.6

7

...May

7

100.6

100.5

100.9

^Number of orders not reported since introduction of
delivered basis at centers where freight from East St. Louis exceeds

*Revised figure.
on

other

;

95.0

May
All

,_.May

foods—




$300,000,000

302,992,959

296,951,858

562,377

548,424

405,424

$303,728,121

$303,541,384

368,740

369,509

$303,171,874

$296,922,290

1,640,618

4,828,125

3,077,709

$303,728,121

——

public

$303,541,384
8,251,604

$297,357,283
5,995,139

debt obli¬

outstanding—:
amount of obligations

total

face

above

authority

issuable

—:—

——-

$297,357.283,,..

434.992Z/Z

10O.4

95.8

public debt & guaranteed

subject to debt limitation.—

gations not

under
...

products

Processed

$308,000,000

owned by the
■—

gross

Deduct—Other

Balance

Group—

commodities

Farm

obligations not

■obligations
outstanding

715,650

Apr, 19

LABOR—(1957-59=100):
All

public debt—

gross

Grand
—

—~

Treasury

Apr. 19
SERIES

$305,000,000

$303,359,381

—;—-——

Guaranteed

Apr. 19

]
i

NEW

$18,203,500

Outstanding—■

Total

sales

Commodity

$293,522,000

303,165,743

—

———

——

TRANSACTIONS

!

"WHOLESALE PRICES.

$32,274,500

TRANSACTIONS IN DI¬
SECURITIES
of April:

LIMITATION
of April 30 (000's omitted):
face amount that may be outstanding

(SHARES):

sales

1,950,

GOVT. STATUTORY DEBT

As

335,360

STOCK /

Y.

purchases

Net

U.

4.415

1,930

A.—Month

S.

13,531

1,502,091
$69,621,719

U.

OF

4,355

6,365

GUARANTEED

AND

RECT

1,208,106

1,522,335

15.732

1,876,263

round-lot sales—

Short sales
Other

TREASURY MARKET

<

Apr. 19

:

purchases by dealers—Number of shares...

ROUND-LOT

EXCHANGE

Total

1

sales-

Other

2,268.811
12,903
2,255,908
$104,853,701

1,192,545
$55,784,129

'

sales by
of

1,527,530

$80,362,651

1,840,540
$89,641,931

—

—

.

155-

155

6,285

1,750

—

6,235
4,485

Apr. 19

.

3.224 Z-

110

transactions

manufacturing

in

Secondary

Apr. 19

.

sales

6,345

scrap

STOCK

Y.

I

value.

period.

of

end

at

of period——!■—

processed

Consumed

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—customers' total sales
Customers'

30,876

794,068

3,420,668

•

COMMISSION

EXCHANGE

(customers'

30.680

759,987
870,597

Apr. 19
Apr. 19
Apr. 19

__.

SECURITIES

$2,238,053

124,988

;

by dealers
shares

$2,657,972

1,193,608

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

263.646

435,571

TIN—CONSUMPTION OF PRIMARY AND SEC¬
ONDARY TIN IN THE UNITED STATES
BUREAU OF MINES—Month of February

Intercompany

Odd-lot

288,529

527,834

27,580

institutions

lending

255,366
462,435

_——_

Miscellaneous

.—Apr. 19

sales—

!

-

1,068,620

.

sales—

3.20

SALES
FROM
AUTOMOBILE MANU¬

FACTORY

$2,424,223

members—

account of

sales

2.28
.

—

168,820

Apr. 19

:

___

purchases

Short

1,326,672

3.23-

3.29

3.12

:

(10)

of

150.400

150,000
—

1,187,220
1,356,040

I

sales

Total round-lot transactions for
Total

Apr. 19
Apr. 19
Apr. 19

sales

Other
Total

'

,

the floor—

on

Total

'Bold

132,500

224,740

997,391

138 200

♦146,500

*143,800

290,700

31

Insurance

224,430

463,110

Apr. 19

Short
Other

March

(200)

Number

Banks

floor—

the

♦57,200

FINANCING
IN
NONFARM
AREAS OF U. S. — HOME LOAN BANK
BOARD—Month of Feb.
(000's omitted):

1,827,990

2,106,720

3,342,140
896,670

232.700

61,600

4.39

number

REAL

Apr. 19

;

Z

242.590

*274,800

127,200

—

—

PLANTS

Total

MEM¬

;

______

—

STOCKS—Month

Number

of specialists in stocks in which registered—
purchases
■
;
Apr. 19

Short

123,400

*292.100

122,800

VEHICLE

MOTOR

-

Transactions

31

(25)

Average

98

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS

:

March

FACTURERS'
1949 AVERAGE=100—

*122,600

254.700

31

(125)

Insurance

363,604

May

March

(15)

360,281

;

148,800

31

(not incl.

Utilities

..May 10

activity—
(tons) at end of period—,

"00

1,244,600

.

(bales)

COMMON

358.223

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

FIR

♦621.200

'1,611,700

228,500

March

(bales)

Industrials

396,753

.———May 4
May. 4
May 4

___—_

(tons)

Percentage
Unfilled

ASSOCIATION:

PAPERBOARD

received

Orders

Production

47 10O

*97 209

39.700

541.700

1,109.700

Z

WEIGHTED

MOODY'S

Banks
^NATIONAL

<(j

14 324 508

14,864,180

(tons)

mills

(bales)

Railroads

'

3.3 i4

Linters—

4.49

4.39

-

—May 14

INDEX-

4.40

4 074

4,153

COMMERCE):

OF

(tons)

Produced

4.86

4.41

4.496

COTTON SEED PROD¬
OF COMMERCE—Month of

(tons)

4.28

4.63

-

5 5t=j

v -

4.47

4.40

e.

5.5?3

(DEPT.

(tons)

3.77

4.63

13 064

4,340

,

(tons)

Hulls—

4.39

11 343

14,194

—

(tons)

Shipped

4.48

—May 14
May 14
May 14

;

,

Group—

Groups-

12,790

14,086

;

AND

(tons)

Produced

—May 14

Group

Utilities

Public

Industrials

3 113

12,864

loans

Meal—

Stocks

88.95

4.63

11.497

3 221

=

4,153

(tons)

and

May 14

,1

—

17 343

12.511

i

31:

(tons)

3.79

;

——

43 211

19.503

3,210

RE-

S.

at

4.36
;

$56 275

48.025

*

Q6 190

Seed—

4.21

A

$62,219

48,190

•v

credit

term

running bales—

SEED

_May 14

;

>

SERIES—Esti¬

credit

..May 14

corporate—

$62,276

12,396

FEDERAL

.

loans
accounts

Stocks

_/

A

3,637,304

credit___

Received

82.40

84.04

5,155 326

*65 2L7

*3,496,450

—

Crushed

87.18

•

*3 951.749

64.429

3,318,913

tons)

(net

credit

report,

Cotton

'

"

,/'.,

AVERAGES:

Government Bonds——,

S.

.

__

92.93

5.251.516

„

.>

March:

87.72

90.02

*4.019.966

—_i——_______

payment

COTTON

89:98

89.23
92.93

May 14
May 14
May 14

—I—.

:—

Group

89/63

89.09

92.64

89.89

198 800

19,720

THE

modernization

UCTS—DEPT.

89.23

673 9)0

70,700

4,626,802

March

:

GINNING

COTTON

22.500c

May 14

693,900

:•/

Z

loans

Service

11.500c

116.375C

May 14

_

uroup_

.Utilities

Public

—

_——

__

877.7)3

Mar.:

of

credit

and

Charge

22.500c

May 14

■„_—L

:_i.„

corporate———'—

Single

11.500c

84.04

Government Bonds

S.

OF

consumer

Personal

9.500c

10.300c

480 600

764.600

4,691.231

credit

consumer

Noninstalment

28.550c.

10.500c

90.77

U.

Average

Total

30.600c

10.300c

$1 353 300

2.485.900

•

;

intermediate

of

as

Instalment

AVERAGES:

DAILY

PRICES

BOND

6.196c

$66.44

10
10
10
—May 10
.—May 10

—

at

millions

6.196c

10

May
May
—May
;
May

—

$3,250 500

653,300

95,800

:

tons)

and

short

$63.33

30.600c

$2,074,400

557,500

.'

—

tons)

(net

GOVERNORS

6.279c

30.600c

■

$2,036,700

'.
.'

SERVE SYSTEM—REVISED

Other

May 10
:

——

(delivered

Zinc

(net

$63.33

30.600c

•

.j-.

tons)

coke

$29.17

May 10

s.

_

,

:

;

$

(000's omitted): *

April

municipal

(net

Repairs

_

at_

15,727

$520,100

;

$63.33

;

'

of

and

coke

mated

QUOTATIONS):

J.

copper—

// Domestic

JZinc

—:

gross

15,474 -/

•

CONSUMER CREDIT OUTSTANDING—BOARD

in

ton)
(per gross ton)

(per

15,393

•

PLANNING,

(BUREAU OF MINES)—Month

COKE

310

6.279c

f
v!'

1,383,400

ADVANCE

construction

Public

,116

12C

113

16,529,000

6
6
6

•

x

construction

Beehive

May
May
May

„

77^19

144,600

$2,164,100

Federal

PRICES:

lb.)

(per

83.833

80,613

DEPT.

S.

S,.i construction

371.900

7

80 C80

154,158

*

,'•.

NEW SERIES—ENGINEERING NEWS REC¬

$286,800

&

*

REPORTED

PUBLICLY

—

ENGINEERING

CIVIL

310,000
,

112

140,718

IN. TIIE
■;

omitted);

$563,900

4

89.774
v;

BRADSTREET, /

CORPORATIONS—Ui

S.

$528,000

,

—May

COMPOSITE

AGE

Finished

■

.

-

OF

DUN

—

:,.t v-

■

/OF COMMERCE—Month of March

'

•

U.

117,500

May 11
INDUSTRIAL)

AND

.

76,334

(NEW)

&

Oven coke stocks at end of month

BRADSTREET, INC.

of

(tons

March—

of

DIVIDENDS

CASH

302,000
126,900

9
9

._

kwh.)

000

(COMMERCIAL

fFAILURES

5,820,294

i—^

STATES—DUN

"INC.—Month

519,882

'

INSTITUTE:

ELECTRIC

EDISON

grades

INCORPORATIONS

UNITED

84,503,000

"

*

/

at

$428,900

9

RESERVE
—May

SALES. INDEX—FEDERAL

STORE

SYSTEM—1957-59

all

(tons of
2,000" pounds) _1
end of period
(tons)

Production

DEPARTMENT

6,309,561

358

J

..

ORD—Month

-.

_

by

INC.—Month of

pounds)

Stocks

Total

planning by ownership———
May
Private
——————.——May
Public Z
—:
*
May
State and Municipal———
advance

_.

5,946,516

transport

tons)

*

Shipments

•

NEWS-RECORD—NEW SERIES
Total

170,736

,

44,320,000

•84,516,000

PLANNING —ENGINEERING
(000's omitted):

ADVANCE

CONSTRUCTION

(in

ZINC INSTITUTE,

2,000

197,867,000
209,786,000 /
A 24,502,000
23,553,000 >
82,102,000 '• : 89,494,000

-

Bituminous

177 425

139,020

ASSOCIATION, INC.—

freight

general

April:
Slab zinc

'

162,977

119.554

February:

carriers

„

AMERICAN

181.590

end of Mar.

•

3

(U. S. BUREAU OF MINES):

.COAL OUTPUT

of

Ago

the U. S.

March

of

(short tons)

TRUCKING

Month

7,358,710

7,484,010

7,460,360

RAILROADS:
' "uA///XT"
freight loaded (number of cars)_
1
———May 4. ,'.,. 590,981
532,415
freight received from connections (no. of cars)—May 4
OF AMERICAN

ASSOCIATION

short tons)—Month

(in

Year

Month

OF MINES)—

(BUREAU

Stocks of aluminum

Previous

Month
ALUMINUM

94.7

...

28,430,000

3
3

Residual fuel oil output

,

Latest

Ago

1,765,000

'

Stocks at refineries, bulk terminals; in
'

in cases of quotations, are as of that date:
Dates shown in first column are either for the

-

AMERICAN

—

production and other figures for the

cover

Year

'

37

or,

Production of primary aluminum in

(bbls.

average

,

42 gallons each)___,—
—,
_——
.CfUde. runs to still?--vrdally aveyage, (bbls, )_iw4^i--^^^-May;
Gasoline output (bbls.) ———
—-May
Kerosene 'output
(bbls.)——j.__————_
—z—M&y
Distillate -fuel nil output fbbls.i
—■—May
.

'

Ago
2,464,000

2,544,000

2,548.000

weekly production —
_
'
May 11

average

on

Week

that date,

month available.

or

Month

Previous

Week

< •

on

PETROLEUM

AMERICAN
Crude

INSTITUTE:
(net tons)—

STEEL

AND

IRON

statistical tabulations

month ended

or

latest week

Business Activity
AMERICAN

<2037)

100.5

Monthly Investment Plan.
one-half cent a pound.

fPrime Western

STATES GROSS DEBT DIRECT
GUARANTEED—(000's omitted):

UNITED

99.9

Zinc

As

of

April

General
Net

30

funds

debt

Computed

,-—r_,

balance

6,579,356

——

$297,148,765

—

annual

AND

average,

*

3.338%

38

The Commercial and Financial Chronicle

(2038)

free

Modest Devaluation Would
yr>i

TV

-

( yliyP ( /TIT*
VyLllvy Vy L4-J-

cumulatively

rium

.

absence

of

„rcL«+
urgent

an.

taken as

be

do
ao

to

im

ior

us

to

to

*^

strengthen

pursue

H.nrpccpc

adjustment
the

dollar

rapidly rising export

markets

in

view

of

the

of the

power

as

pay-

its faster economic growth and the

that rise of mass production and

suggested,

into

the

will

we

correction

of

imbalance by artificial

that not only would deworld trade, but also would

measures

defense Common Market benefiting from flate

of

exports

assistance

our

will

balance

be

taken

as

visible

a

sign of the

economic and political decline of

mass

markets. Without the self-imposea

the United States,

to

trade,
in-

and

Ldpudl. *xpuiu>

crease

+hA

trade

our

other

ability

liberalization
capital

ilUdULe

lm-

export,

forced

Allies. We also
Qur

to

be

Pressure

our

ability

suffer not only in Europe, but in

unreasonable

or

finance

wnrlfl

comm tments,
ur
a
banker and principal world
*

would

Thursday, May 16, 1963

.

.

equilib-

an

payments

our

might alienate

in+pr

nni,r

economic

for

d«mai

signal

in

but also

return

Part - of - defense

strong

a

rrk1p

should

development

losses,

the

spending

The

impact. This surge

growing

achieve

CIijf

ovnnrtc

yet reached their full

gold

SVTTTOTILS vTcIT) witbout sacrifice in
kj v-a

I

J-

Hon.

Continued jrurri page 11
(^onunuea from puye

from the "terror"-of fur-

us

ther

.

dllu

to

——

111

under-

■

_

.

„

sssvsrtr
In

Dr-Hallstein's

of

spite

sfon°ofS labor^C&e^world"
Market appears

Common

the

de-

termined to reduce American lm-

">

"je

otner

S

na a,

+Qriff0

thened

/we

were

to

offer

to

gram.

The

reduce

terials

from

a

to

improve

tional purchasing

mH

the

interna-

power of under-

ir^nortance developed nations. Naturally, this

thp

when

the

dollar

relative

tional

exchange
to

the

interna-

devaluation

of

the

pound

more

th.en.

heca^
abroad

expensive

while

°^r°Ur lmpo£ts wer(: cheap"

Moreover, the weakness of

international

material

raw

prices

nof mI"rS imnorts
01 our imports,

grnwth
growth

Advocates

Modest

more

or

Reversible

Devaluation

modest

tion of the
uon.oi
uie

an-

dollar
aoiwr

bv

devalua-

5%

10%

to

,

appears

edy

the only sensible

as

to

re-balance

tional

financial

rem-

interna-

our

disequilibrium

While this should be applied
final
adjustment
it should
be feared

that it

sufficient

as

a

not

might be insuf-

ficient to achieve the desired ob-

the

gold

dollar
and

as

7

page

interested dealers

is

program

revolving

fund

investors,

and

The CFA staff took the initiative

financed

in working with the investment
rating services to induce them: to
30, rate college housing bonds.

with

cumulative authorizations totaling

$2,275

billion

attractiVeness

tion of

..gqld

our

the

dol-

of

the

continua-

inevitable.

foreign

were

oniy

If

dollar

the

the

hold_

external

the

Triffin

Plan

other

or

through

June

,

to

payments

deficits

gold

reserves,

we

left

but

proposed

the

have

no.

m,

,

,

,

,,

a decIining importance of the dol-, concomitant of the devaluation,
in 1961 and *ar as reserve currency, etc.), we the price of gold per ounce would
promptly experienced a strong cannot afford to sit idly by.
have to be raised to $36.75 or
pull toward equilibrium from her
The lowering of the exchange $38-50- While this increase would
excessive surplus position.
The value of the dollar cannot be in- have a stimulating impact on the
reduction in the cost of the dollar terpreted as a "betrayal" of the
Ul?ion of South Africa, it cerwould
favor
underdeveloped trust put in our currency. Ac- tainIy should not be assumed that
countries in particular by
cheap- cording to the statutes of the In- the. Soviet Union, as the other
ening for them imports needed -tcrnationsl Monetary Fund, we as n}ai°r Sold producer, would. defrom the United States.
a member are not only authorized,
^ive a far"roaching 0 advantage
but have the
duty to correct a fr0m fb*s change. Should other
small readjustment of the
bagic disequilibrium in the
pro-. countries f°llow suit and devalue
exchange value of the dollar can,posed
manner>
as
we
cannot likewise, it could not.be said that
jective.

Germany up-valued

its

Congress

.

lahelpd^

achieve adjustment in any other we yere responsible for having
to
foroign
finanriai
nncitinn
way without far more serious pu^
m0tion^.^.^4- of^cpmpetiand thp mialilv of
doiflr Thp consequences. In connection with. J^yeTT ^ya!uaJ1(?n' J
J
nroDospd changp in thp Pvohangp
the devaluation, we should offer the Pnited States has now lasted
rate must hp tfkpn
1 tn
every foreign central bank these a dozen years, indicating that we
the world-wide devaluation else
alternatives: either they can main- kave a Problem requiring correcwhere in 1949
We rannnt wait
tain the ri§ht to withdraw dol- tlpn» .whll.e all other leading
for the disaDnearance of the defi
lars freely in S°ld and conse..J11 wpr^d trade have
cit
from
fasfpr
rising
-foreign'*qu®ntly bear the loss from the
^^ r V J,u,? balance surpluses
wages
and costs until thev will ,devaluation> or
they coald con- °r;have held their own. r
.
"catch up" with our own and) clude
hon-convertibility agreeIn a final word on the domestic
close the gap. In
fact, they never ments-3 By agreeing to keep their impact from the devaluation,, we
will and such
equality would not dollar assets, they would receive should expect only benefits for
imagination

ho

n

a

sphup

-

be'in

wisely

College Housing Loans

^:/°u« be> rated A or better

CFA Buys

a

out it,

since

the

education

would

been unable to keep

than

housing

demand

increased

from

It

for

long_

are

issue often

a

lower

lending rate—which

has

required

ap-

college bor-

to solicit bids

the

first

the basis

on

10-year

fs_VPar

hiopb-

nf

o-year,, diock

f.

restrictions

human

of

block-of

maturities and thereafter for each

would
•

have meant serious
on admissions. Our

rowers

of

interest rates

maturities

uniformly to all maturities

__CFA

have

resulting

enrollments.

mM.t

our

plies

with the

up

market

early

term-bond

pro-

many of our institutions of

higher

Rejected Longer

Maturities

viewed

as

today

This record speaks for itself,

of national urgency. With-

gram

well

re-

as

purchase

we

maturities

oi

the

on

as

maturities,

entire issue

only the

as

Thus

later

ma-

sources as a nation would have
been
impaired.
Obviously,
we

turities where private bids for the

would be shortsighted to consider

better than

education

solely

commodity.
This

as

eariier maturities

dollar

a

toward

has

or

xhese policies have contributed

*

program

equal to

are

lending rate,

our

emphasized

developing

market

for

increasing

an

tax-exempt

objectives

college
housing bond issues of public in-

without sacrificing good business

stitutions. In 1962 this culminated

judgment.

good

in

the

de-

of

revenue

the

human

loans.
The

and

loans

interest

on

spread

of

of

charge

soon

our

cover

administrative

penses.

1%

the Treas-

pay

all

enjoys

professional

educational

recognize
not

remark-

so

educators

readily that
our

who

we

have

bureaucratic

to meddle in their educational affairs. There is no pattern
college housing directed from

ivory tower in Washington,
This too results from deliberate
policy, thoughtfully conceived and
an

$166

over

is

to

million

private

exceeds

another

compiling

take

in-

by $54

that

record

pride

in

this

record

developing

swe

sound

loans. At the same time, we .are
willing to take a secondary position

and

administrators

permitted

of

bonds

speaks for itself,
In

a

fingers
to

This

ex-

abie breadth of support—particularly among educators. For it is
the

sale

million
the
tax-exempt college
housing bonds sold to the Housing
Agency during the same period.

.

The program

.

principal.>vestors. This total

or

we

will

cumulative

has

only

we

what

and

borrowers

are

college

one

between what
ury

social

Our

Not

faulted

ihront

our

has

more

than 30 institutions—all seasoned

_

currency by only 5%

.

°ver 100 additional issues of

encumbered

$2-2 billion in net fund reservations .,
;
$2 billion in net loan approvals
$1<5 billion m our portfolio of
bonds purchased

choice

,

funds

on

.

devalua-

,

based

^interns, and faculty members b/standard andPoor's
260 college unions
Thit

tion.4 The advantages from the

.

Over 40 issues have been rated

...

A^mm^tt^&^ovef.fSbO,,
000 students student nurses,

or

devaluation accruing to exporters
United States as world banker, s h o u 1 d be used by them to
we should encourage this growth strengthen their foreign marketas a sign of the financial strength mg ability and distribution efforts
and integration of the free world- ^ead °f realizing temporary
*n the present situation, foreign- short-term gains m sales by
owned
dollars
are
used
as
a
lowering pnces.5
UWX1CU
"
*
J
d
'
weaP°n by the very foreign cenThere should be no doubt that
tral banks that should cooperate, the proposed devaluation, small as
to make forays on our gold stock, it appears, would permit the closWhatever the reasons for these ing of the deficit and at the same
moves (to increase their own gold time the continuation of financial
st°ck; fear of U. S. devaluation; policies to expand world trade. As

authorization will in-

as of March 31, 1963.

plans

role of the

supreme

ing,

that would restore the dollar to
its autonomous strength without
regard

This

crease $30° miHion during each of by Standard and Poor's Corporathe ensuing two fiscal years. A tion beginning in 1959 — with
few statistics tell the story of more than 95% rated A or AA.
what this program is accomplish- In our judgment, substantially

Without

deficit makes further

lo6se{S

grwth

but

1963.

cur.,tary system capable of preventing
gold losses either according to

ke

reserves

countries and the control of capi-

a? tal exports of a speculative nature,
interl
Without an international mone-

bound to lose international

symbol of the

less permanent and
a

ofS

reserve

for

■..

.,

,

Qf the free world.

~ings

Under these conditions that

Deir

,

tance

#^ lar is

_

,

national

and

other currencies). In other words,

our^ exports

Tir

reductions

,,

was/>-

currencies

key

of

rate

other

creasedT>y 43% (equal to the 30%

thp
the

111

-

Continued from

modest devaluation would have to
The
root
of
the
decline
in
foreigners who now would need be implemented by a greater exUnited States international comharder selling
in the American *port effort> domestic wages and
petitiveness (chiefly in industrial market
price discipline, a curtailment of
goods) can be traced back to 1949
'
Conclusion
defense spending in dollar surplus

ened.

TlldUStrV

,

tariff

f

Opportunities for Municipal
± A
^

gteps should be takeIlj too> to
stabilize export prices of raw ma-

MirkPt

cnf-finfontiv

enhanS

wnmd

rope.

w

p

unwilling

surplus, and this in spite of

rapidly rising food prices in Eu-

st

®e sHuatioa

agricul-

our

sat'TE sa.SwSrs;;
Paljative of the

.

be^nSuaftcTcope with simultaneously a unilateral tariff
T£eJe^oS goodwill to expand worto toade

out to

produced most

ports, of the type

efficiently,., namely,
tural

The

as-

to the private

apparent

market.

contradiction

distinguishes
lenders. We

is

from

us

serve as

The
What

private,

bankers only

incidentally to carrying out the
public
purpose
stated
in - our
enabling legislation — "To assist
educational institutions; in
viding housing.
."
.

Since

we

.

pro:

.

operate

with

Re-

a

merchandise exports and domestic carefully maintained.
volving Fund, every million doland foreign investments, but no
in
administering the College lars that is provided from private
uation until we are forced to
ap- of exchange losses should become
unfavorable side effects. Instead Housing Loan program, it has sources for college housing means
ply undesirable measures,* such available pro rata of dollars con- °I being afraid of inflationary been our basic
policy to develop another million to meet what is
as the limitation of
commitments verted
in*° other currencies consequences, we should realize, sound loans. Our requirements as still a growing and insatiable
or
the
imposition of exchange whenever needed to finance im- that for our economic situation to debt service
coverage, main- need for college housing facilities,
controls to cope with a deteriorat- ports or investments outside the at present there hardly exists a
tenance of specified reserves and The $166 million, in bonds
sold
ing state of affairs.
Experience dollar area. The Treasury could Ir[ore efficient and less costly de- fiow of funds—all are designed privately in 1962 means accomohas revealed, to
quote from the use tbe devaluation profits yice to achieve faster economic to encourage good debt
manage- dations
for
more
than
40,000
"Radcliffe Report"
(paragraph (amounting to between $800 mil- grpwth. Unless we improve our ment and to enhance the market- students.
716) that "no other instrument is Bon and $1.6 billion, dependent
ability of the bonds.
We have used $112 million in
as
powerful as devaluation that
the amount of devaluation) to
^a5T„.uUghSS"trun,ul?o .chlKTtto
Our financial requirements have government loans for public incan
be used to restore
competi- flnance
^ !xPe"se' :.
maHaUon*" pHncipl" and en" been developed in terms of the stitutions to help create private
tive power. In conditions
in which
The bo»est dollar adjustment
our

should

not

interest,

wait

to

either. '

correct

a

We

sit-

non-convertibility bonus. This
compensation equal to the rate

a

-

.

a

..

fniW

'.A_

,

.

nrnnnnpH

hnrPtdth nnt

.

t

nnlv

courage retaliation. .
5 Many Amencan-made

„

consumer

-tdd
^
Standards and conventions

goods

f
Of

th
the

loans of $166 million for the
*
■

same

^

other

countries

riencing
offers

a

rlndpd "
•

ln

;

J™

1963

are

similar
that

way
Wo
,

face

i

+1-.
.

this
a

not

difficulties,.
cannot
tt

•+

bp
j

P,

.

py.
.

Un.lted States
tvne
lype




Of
ui

sitnasixua

...

f.old embargo. In any case, a good portion of foreign-owned dollar balances is
needed to finance foreign trade and payments. ®nt*» therefore, could
sented

for

payment

in gold.

never

be

pre-

llJC

interest in hard selling in this category,
On the other hand, we push sales cf less

""j ,flUU1 "
and to prepare

competitive industrial products and agricultural surpluses which face regulatory

0f

restrictions.

Sale

and

Facts

^

Official Notice

Statement
„

tial

an

for

Jt

...

Of

Esseil-

,.

distribution

,

to*

\

T

oolrindntmoil

tlmm

Looking ahead, there

trends that will have
i

-i

able

;

i

impact

xu.

on

the

nnn

counml

are several

a

COnsider-

niTiKlnmc

problems

ma

we

Number 6264

Volume 197

and

face

the

on

opportunities

.The Commercial and Financial Chronicle

.

.

anticipate will result in sales

we

of

facing investment bankers.

Total

college
from

creased

million

in

1939

Each

or

1962 the

private school

is

pro¬

In

VvV*.-'

/

as

/

*!

creased

enrollment,

made available

must

by 1970.

3%%

could

not be

per

San

at

can.

of

pre-sales

will

the

and

informa¬
held

in

cities

nurtured
know

which

credit
can

from

loans

meet the

have

near

each issue

for

on

will

distribution

in

widespread.

*From
,

bidding

date,

re¬

If I

of

each

Federal

dealer in

stayed

lege housing

from

bonds

revenue

Public

col¬

irreversible

increasing
which

trend

security

for

offering

will

quarterly
mean

of

share

(3)

and

com¬

in

a

Santa

made

&

Co.,

proceeds

by
Inc.,

to

the

television sys¬

pay

If

I

sound

I

On

a

and

Monica,

the

wholly-

its

through

plans

tele¬

pay

in

^bond

sales

College

from

Actqal sales

may

Pforzheimer Co.

Carl

&

Pforzheimer

Street,

New

of the

members

Hourigan

Co.,

25

City,

York

to partner¬

Mr. Hourigan will also be¬

ship.
/ come

a

Stock

member of the New York

N

Exchange.

college
turn

housing

will

ease

interest

bonds.
the

on

State

bid

best

Dela¬

(1964-1983)

the

for

2.80%

a

bonds,

coupon, was

First

the

by

of

bid of 100.319 for 2%s.

a

100.4599 for

Boston

Corp.

account.

:* ■/*,

tional

major
&

of

members

syndicate
Co.,

Bank

This

in

in
for

demand

Week's

Major

Sale

Wednesday (5/15)
busy
note

with

day

.

selling

This

issues

competitive

largest

include
Rhode

of

the merged

Lehman

T.

of

A.

has

Exchange,
the

public funds in the future.

Brod

T.

Brod

Board

of

been

terest cost,

of

$48,-

3.0421%

a

the

was

in¬

net

beating out the Chase

Manhattan Bank group which bid

3.0774%

F.

Major, members of .the winning

Island,

the

on

Bankers

are

City

Trust

offered

from

at

1.60%

to

disappointing, with the

Bank

tinental
and

side

Bank

Co.,

N.

&

T.

of

Morgan

Chicago,

Illinois

Trust

Co.,

S.

National

Bank

A.,

of

Con¬
Bank

America

Lazard

Freres

&

Co., Goldman, Sachs & Co., East¬
Dillon,

man

Union

Securities

&

"v'N Co., Drexel & Co., Wood, Struthers
& Co., Roosevelt- &
Cross, Inc.,
F. S. Smithers & Co., Dominick
awarded $6,000,000 improve¬
&
Dominick, Hayden, Stone &
(1965-1983) bonds to the

at

Chicago

City

Bank

group

2.8851%.

winning bid compared

with

favorably
a

District, Il¬

interest cost of

net

a

This

the

very

made by the Morgan Guaranty

Trust Co. account.

group

are

Kidder,

Pressprich &

Co.,

&

W.

R.

Co., Salomon Bros.

Hutzler, Paine, Webber, Jaskson
Curtis,

F.

Moseley

S.

Hornblower

&

Industrial
Rhode

Weeks,

Co.,

&

Chas.

Co.,
of

Bank

&

Co.,

Merrill
&

the Lehman

on

Phelps, Fenn &

are

Lynch, Pierce, Fen¬

Smith, First National Bank

to

St.

Boatman's

National

for

of

Bank

Louis, Ira Haupt & Co., Wil¬

liam

E.

State

of

Bank

and

Jersey
The

&

Pollock

2.90%

a

1.80%

to
the

coupon,

Newark,

Walston

bonds

New

Co.,

&

3.20%

in

The

2003.

maturities; the

to

in 1985 to

1965

1978 .to
2004

Tuesday, Halsey, Stuart turities,
totaling
Co., Inc. and associates was the bonds, were sold
on

1968

pre-sale.

gation (1965-1983.) bonds at

would

was

bid

2.941%

it

about

was

the

and

third

bid

Y

Associated

&

Co.,

Merrill

Smith,

with

in

Inc.

2.942%

a

'

;

The

City

of

of

Late

esti¬

$15,000,000./;

capitol

Co.,

Co.

&

and

of

the

Stone

&

Webster

Se¬

count headed

Boston

Corp.,

Dominick

&

William

P.

Savings

Harper

&

Reoffered

to

3.10%,

not

to

"yield from

the

close

1.85%

bidding

a

3.39%,

Inc.

net interest

a

interest

net

Halsey,

by

account

cost,

Stuart

from

winning

in

1997

of

"Action,"

lie

toll

remains

1%
at

All

Dollar

the

public

bond

were

The

the

our

stands

at

against

15

yield

issues

over

in

Chronicle's

Index

May

average

and

bond is¬

unchanged

Index."

on

Among

•

authority

revenue

about

were

week's

V

Issues

the past week as averaged
bond

and

jrield.

road, toll bridge, pub-1

utility,

23

in

coupon

4.30%

a

Provide
in

other long-term
sues

initial

after

maturity carried

of

"Skyways"

1966

tabulated, a bal¬

1997

reoffered

The

to

and

been

one-tenth

a

to

$4,390,000

group. The

was

reoffered

in

are

2.10%

of

last

3.413%.

utilized

there

price changes exceeding

no

one-half

of

There

a

point.
two

were

how¬

issues,

falling in this category, that
subject to a rather violent

ever,
were

market

-change.*.

Chicago

The

Columet

Skyway 3%s and 4%s
recently been depressed to

had

lows

new

Were
80-84

The

1963.

we

these

are

press,

quoted

71-73

issues

85-88

and

tively. The fluctuations
reflect

to
of

former

early in this week. As

to

go

for

quoted 66-69 and the latter

respec¬

here

seem

differences

individual

opinion concerning the July 1
payment.

The

Skyway

is currently not covering interest

requirements but there
which

toms

are symp¬

indicate

that

the

July 1 coupon might be paid,

Miller to Address
Fin. Execs. Inst.
Charles

W.

Miller, partner in D.

Blair &

H.

report

vestment

Co.,

Short

Patterns

Area

nancial

Term

for

In¬

Corporate

the

at

Conference

will

York,

New

"New

on

1963

of

East¬

the

Executives Institute.

Fi¬
The

gathering, which is sponsored by
the organization's New York City

Chapter, will take place June 1315 in the Monmouth

Hotel, Spring

of

aspects of corporate cash

management.
Other
such

cash
and

nies

will

speakers

deal

planning,

commercial

flow,

financing

as

relationships between
and

with

cash

problems

compa¬

banks.

&

bid,
was

Bond Club of Phila. to

;

the

;

Hear Etherington

Co.,

PHILADELPHIA,

associates.

and

Other members

has

influenced

the

Co.,
Wil¬

of 3.35612%. The second

made

Son & Co.

&
and

Drexel

Dominick

liam Blair & Co. at

&

Trust

securities

ance

the

sold

jointly by the First

cost

and

world,

Halsey, Stuart $6,000,000 Water and Sewer reve¬
nue
(1965-1993) bonds to the ac¬

Corp., B. J. Van Ingen &

of

■'/

The

various

Georgia,

this underwriting

Seattle

Co.,

V

Augusta,
borrower

infrequent

an

golf

Lynch, Pierce, Tenner

as¬

>

include R. W. Pressprich &
Ira Haupt & Co. and Bache

ern

syndicate

Infrequent Borrower

net interest

net interest cost.

from-

Lake, N. J. It will be devoted to

close, with the

very

a

Corp.

3.2761%

a

came

//

Consideration"

interest cost of 2.940%. Once again
second

'

Other members

ma¬

mated that the balance in

bidding

cost,

ma¬

2013

$20,895,000

afternoon

total

to

1984

to

Tacoma, Washington general obli¬
net

bid,

Inc.

reoffered

were

turities and the

a

Securities

National

Co.,

yield from 2.20% in 1969 to 2.60%
yield from

cost,

headed

Oregon, Bacon. Stevenson & Co..

The

yesterday

to

Foto-

sociates.

interest

in 1977 and from 3.00%
Scaled

of

Island.

Brothers side

E.

Co.

&

National

Major members

ner

Smith, Barney & Co.,

Peabody

Co., Shearson, Hammill & Co. and

bid,

second

net interest cost, which

2.8858%

was

Park

The high

the group

interest

revenue

cost.

net interest

syndicate

note

Halsey, Stuart & Co., Inc. and

3.415%

S.

Na¬

by

Equitable

net

syndicate headed

&

elected

Directors

sale.

issue

Brothers

high bidder at

National

are

yield

National

First

Bank
A.

of

by the First National City Bank
and

of

interest

net

and the runner-up

755,000 New York State Housing
general

Co., Reynolds & Co., R. D. White

members of the New York Stock

made

orders had

another

was

three

.

at

week's

sale

bonds.

3.252%

yield

the

Industrial

securities

to

been

ment

&

Named Director

'

a

was

$3,275,000

Fahnestock & Co., The National guaranty Trust Co., Smith, Barney
& Co., Harriman Ripley & Co.,
Bank
of
Commerce, Seattle,
Roosevelt
&
Cross
and
Shelby Halsey, Stuart & Co., Inc., First

curities

>

(1966-1998)

bid,

3.40%

a

Other

are

believe that private investors will

increasing

'•/, '• '

*

.

various purpose

ware

"

(2) As the bonds of more insti¬
tutions get wider distribution, we ;

go

and

cost
T.

yield

as we

$9,628,000

New York Stock

Exchange, on May 23 will admit
Edward

(1.) They will improve the cash
position of the Federal budget.

H.

Broad

our portfolio.,
be more or less

-

of

balance

a

final

nue

(1965-2013)

&

To Admit Partner

Housing

havq two major effects:

offered to

were

from 1.65% to 3.10% and
press

week's

group

high bidder for $4,780,000 City of

market conditions. Such sales will

-an

>

the syndicate led

Tuesday,

3.10%

a

than $50 million, depending upon

show

-

.

totaling $20,-

present balance is $4,780,000.

knoyv that the President's budget
for fiscal year 1964 sets a goal of
in

tional Bank of Wichita.

to

4.10%

a

consisted of $7,000,000
Gainesville,
Florida Water and Electric reve¬

bidding groups

United

the

States.

formal sales announcement. Many

$50 ^million

with the present

drews

of Los Angeles and

-

make

Miller & Co., Halle &
Stieglitz and the Stockyards Na¬

obligation

&

communities

Co.,

Hayden,

Weigold & Co. and James A. An¬

other

&

bonds attracted two

&

Home

install

Weeden

First National City Bank

En¬

to

York,

by the

Co., Inc., of Los An¬

subsidiary,

New

The bonds

coupon

at

jointly by Kidder, Peabody & Co.

Marine Trust Co.

Dempsey-Tegeler

3%%

a

in other parts

are

good

salesman, it's
to

for

Other members of the successful

19th

at

Co.,

1%

a

reoffered

,

This

of the winning' and

members

Western

approximately

-

account

436,000.

Also

about

yield

in

for

1, 1994

vision in Santa Monica, and later

Government's

like

am

100^

at

moderate,

balance

Portfolio

because

A.

3.35%. Initial investor demand has

Monica, Calif.

Santa

tertainment

geles,

Entertain¬

being

Net

operate

owned

people with whom to do business.
Sales from

J.

bid

remains in account.

to

coupon,

The

will be used to install

company,

terms

officials

able

York.

Broadway,

coverage.

college

That

knowledgeable,

300,000

Kahn

Headquartered

facilities, increased revenues, and
greater debt service

of

Home

is

M.

tem

as¬

of housing

use

and

ten

were

ing $6,660,000.

America, Inc., at $10

college

academic

greater

priced

are

has

Co.

and

(2) That the trend to tri-mester
-

&r Co.

securities due May

The

of

company,

housing bonds.
and

Co., Fahnestock & Co.,

Taylor

prices

shares

per

are:

we

America's

solid

Association,
West Virginia,

ment

to

up

investment in higher education is

sures

Bankers

Springs,

mon

New

an

Kean,

linois

convinced

That

before

Pay TV System

Bernard

(1)

Woolner

1963.

Perhaps the dealer would become
as

&

present balance in syndicate total¬

I would take another look.

now,

Sulphur

Mi*.

dollar

municipals

away

American

Roosevelt

3.00% and initial investor demand

public institutions.

were a

had

by

Offered for

maturities,'the

should provide 1-2 private dollars

who

R. L. Day

winning

-

Common Stock

stand ready

later

for bonds of

Co.,

&

Cross, William E, Pollock & Co.,

are

pri¬

we

*

Corp.,

Inc.,

Cullom Davis & Co.

the

leverage

Securities

interest

standards

developed

maturities, while
take

talk

a

Investment

White

May 8,

vate lenders to bid for the earlier

to

Stone

Hayden,

made

future.

to

the

We

By encouraging

we

loans.

good

the

on

&

Smithers

experience that such

made

which

need.

Allyri &

Co.,

interest

net

which

groups

account include

Co., Barr Brothers

A.

The

bdught

brochure

Judging from the inquiries

have

we

&a#Co.,

Weeden

2.60%

a

39

yield.
a

from the Bankers Trust

syndicate and there

Other

Weeks* John

&

—

The combination of private and

public

Co.,

of 2.5866%.

carried

was

this issue.

C.

Co.,

Second

available

ceived

colleges

&

bid,

came

additional

&

bonds

will be

rates

;

be

comprehensive

the

of

&

Co.

of

been

Federal Reserve

be

afford to pay.

interest

Nuveen

ing circulars for

college
housing bonds in the private mar¬
ket

some

at, 2%%'

Francisco, and New York.

A

of tax-exempt

amount

Co., Carl M. Loeb, Rhoades &

college housing bonds and offer¬

the

issues bodes well for financing an

increasing

from

probably Atlanta, Chicago, Dallas,

level of
But

year.

higher proportion

get the

range

maturities

several

required

eral funds at the present

will

rates

meetings

provided from Fed¬

million

the larg¬

of bonds will

series

A

exclude,

dollars

total

The

Y;/■

3%, with perhaps

to

tion

existing backlog of unmet housing
needs.

&

cost,

Tripp & Co., Tucker, Anthony &

2%%.;;.;Y

v

estimates

Co., Bear, Stearns & Co., Shields

Hogle & Co.

shorter

$2 billion of the borrow¬

ings will be tax-exempt.

these

5-

the first

Bids that will take up

Coupon

borrowed funds.

^nd

bids

buy,

beyond

the

of

C. J, Devine

are

&

The

be

$3 billion of this amount will be
Over

to

award.

additional

billion

members

interest cost

second

ley & Co., and Blyth & Co.
major

net

Hallgarten
bonds

many

successive

on

maturities

est number

in¬

the

as

10-year.block. '

Assuming that by 1970 housing

one-third) of

invited

be

year

-

accommodations need be provided

only

experience on

willing

are

you

dicate managed by Harriman Rip¬

winning account

and

National Bank and Trust Co. at

6

page

Co., Hornblower

order to sell

will

be in

expected to

private schools.

$300

be

bor¬

plus accrued interest.

par

of the total

1985 only 20%

By

$4

will

from

be

No bids will be accepted below

portion had dropped to 38%.
enrollment

will

from

:

comparable issues.

50% of the total.

Continued

Other

with proven

rowers

approximately 7 million.
1949 private schools enrolled

for

.

offered

issue

seasoned,

In

•

will be of equiv¬

or

service coverage.

By, 1970 total enrollment should

Ih

A

million in 1962.

to 4.2

be

rating,

have

alent quality, with excellent debt

in¬

enrollment

1.3

AA

or

College Housing

will

offered

bonds

maturity

TAX-EXEMPT BOND MARKET

approximately $25 million.
All

$4 Billion Needed Just for 1970's

(2039)

Etherington,

winning

American

Pa.—Edwin D.

President

Stock

of

/the

Exchange,

will

include

many
buyers as
King, Quirk & be guest speaker at a luncheon
Depending upon market condi¬ chrome Inc. The company, head¬
yet and the present balance totals Co., Stern Brothers & Co., Folger,
meeting of The Bond Club of
tions, we plan to advertise for quartered in Long Island City,

bids

within

the

next

month

or

N.

Y., operates

a

nationwide photo $3,875,000.

two,, and pr obab 1 y will be in
the
market
on
more
than one

processing service and distributes

occasion.

photocopy

Each offering

of

carefully

will be composed

selected issues




amateur

own

photographic

machines,

trademarked

that terials, such

as

products,
and

sensitized

their
ma¬

film and paper.

Nolan, Fleming & Co.

Tuesday's final sale of note

C.
was

$4,155,000 Wichita, Kansas various
purpose
were

(1964-1983) bonds which

awarded

to

the *

headed by the Continental

The

bonds

Philadelphia

1992

were

and; initial

amounted

to

.

to

.*

be

held

on

Wednesday, May 22, at The Bar¬
reoffered

to

clay

orders

$2.550.000.

The

have
1993

Hotel.

Albert A. R. Wenzel of Francis

yield from 2.00% in 1965 to 3.50%

account- in

Illinois

and John

Legg & Co.

I.

duPont

&

Co.,

arrangements.

is in charge of

40

(2040)

The Commercial and Financial Chronicle

.

.

.

Thursday, May 16, 1963

ciation 44th Annual Summer Out¬

WASHINGTON AND YOU

ing

at

the

Woodland

1963

(New York City.)

Country

Club.

BEHIND-THE-SCENES INTERPRETATIONS

June

7,

Bond Club of New York 29th An¬

FROM THE NATION'S CAPITAL

V

nual

Field Day at

Sleepy Hollow

Country Club, Scarborough, N. Y.
WASHINGTON,

D.

C.

then

the

ago

years

CHRONICLE'S Special Pictorial

Four

—

Senate

Wooing Texas

Ma¬

The

jority Leader from Texas, Lyndon

great

B.

his

Vice-President

Johnson,

tion!

running for the

was

Democratic

presidential nomina¬

Today he is running for

ncmination

election

and

to

National

the:

Convention,

vehemently

son

dential

he would not take

elected

the Democratic ticket. Perhaps

succeeded

he

meant

cians

ticket

visers.
A*

of

' '■

few

days ago

Vice-President
President

Johnson

said

the

recognizes

This

rest

spring

that

President

Vice-President

The

well

in

/hand,

his

delegation

for

June

of

Texas

has

of

the

been

with

is

in the

Usually

for

influence

state delegates to

Of

with

his

political

a

but

cratic

con¬

of

as

can

happen in
the

now

it

same as

a

Demo¬

presidential tocket in

will be the

fre¬

lot

a

leaders

who

breakfast

have

Beach

with

tains

Senate

who

Civil

campaign

the

have

doubt

no

Johnson

ocratic

the

there

says

that

will

1964. Some

their

is

Vice-President

renominated

be

in

party

1860

the

on

War the
their

party,

time

served

He

in

the

enjoyed

asked,

House

his

particularly
Leader.

Majority
he

was

Republican

great thing

a

a

of

Mr.

Johnson's

close

party

to

South

is

the

as

holder of the second

important

political

land. He is

office

for

hold

its

that

the

is the fastest growing area

.

of

the

supporters

Nelson
York
next

A.

of

Governor

Rockefeller

might

prefer

presidential

of

to

New

hold

the

convention

in

Beach, and the South.

the

delivering speeches in

all parts of the country.
As

an

last Friday night and

on

back

dress

to

Washington to

American

banquet

cartoonists

Saturday

on

son-Jackson
on

June

8

ad¬
at

night.

May 20 he will address

•

for

a

a

On

Jeffer¬

is

graduating, class

at

the

tf.

the

S.

years

Barry

way

he

Academy; three days later

will

make the

commencement

address at University of Maryland

where he will receive

an

degree, and he also will
commencement

University

.

at

address

Medford,




honorary
make
at

a

Tufts

Mass.

Goldwater

things

in

front

of

the

Republican

picture

in

the

the

at

with

Southern

is

for

the

to

Mr.

will

states

next

that

At the

for

the

year's

country

time,

same

GOP

in

mit

his

name

to

Baltimore
ciation
at

the

also

Florida,

one

and

Texas

now,
in

both

will

have

states

56.

As

reportedly

Country Club.

annual

spring outing

Association

May 23, 1963

•

out¬
the

v "
(Santa Barbara,

Association

Conference

the

at

Investment

12th

Santa

Annual
Barbara

Biltmore.
June 27, 1963

(Des Moines, Iowa)

Investment

Bankers

Asso¬

ciation 28th

Annual Field Day at
the Wakonda Club.

of

Attention

Phila¬

Customers

MARKETS

Botany Industries
Indian

(New York City)
of

Brokers and Dealers

TRADING

Head

Maxson

Bro¬

Mills

Electronics

Official Films

Annual Meeting and Dinner
the'Americana Hotel.

at

favor

1

California Group
Bankers

kers

of

Waste King

May 23, 1963 (Omaha, Neb.)
Nebraska

Investment
annual

the

reflect

interpretation

from the nation's Capital and

New

Sleepy

Calif.)

Iowa

(Baltimore, Md.)

Association
to

at

(Philadelphia, Pa.)

22-25, 1963

Club, Gulph Mills, Pa.

Association

of Republicans

the "behind the scene"

may not

28th

June

of the fastest

Republican convention,

majority

a

Outing

the Country Club of Maryland.

Mills Golf

growing states, will have 34 votes
at the next

Hillwood

delphia annual outing at the Gulf

would get some votes in scattered
areas.

Annual

City)

of

day, May 17

Security Traders Asso¬

Investment
Rockefeller

the

at

May 17, 1963 (Philadelphia, Pa.)

convention.
Governor

16

May 17, 1963

per¬

before

go

May

Country Club; field
at the Belle Meade

in that region

an¬

Spring party—cocktails and

dinner

part of; the
Governor

flatly refuses to

l;:^'/:'M/:.'/yMA'/

.

Security Dealers of Nashville
nual

leaders

some

Day—

May 16-17, 1963 (Nashville, Tenn.)

that

votes

York

(New York

Association

marsh, Pa.

try Club.

all

George Romney of Michigan could
some

21, 1963

Philadelphia annual summer
ing and golf tournament at

Annual * Field*:

Queen
City Club;
Outing
May 17 at the Losaiitiville Coun¬

convention

that

maintain

June

the

dele¬

send

at

Whitemarsh Country Club, White-

Yerger

conviction

Meeting

Reception and Dinner May 16 at

con¬

Republican

Goldwater."

Association

Annual

Investment Traders Association of

Cincinnati

leaders, said recently "the South
expressed

(Canada)

Dealers

Municipal Bond Dealers Group of

or¬

Country

Omaha

Our New

a

may or

coincide with the "Chronicle's"

day

telephone number is

CAnal 6-4592

at

Club r (pre¬

dinner.)

LERNER & CO., Inc.
Investment Securities

June 6,

1963 (Boston, Mass.)

Boston

views.]

York

Bankers

field

ceded May 22nd by cocktails and

stacking

are

"runner"

Securities

Traders

Asso-

10 Post Office

Square, Boston 9, Mass.

Telephone
HUbbard

Teletype

2-1990

617

451-3438

by far for
Presidential

South.

The

„

T

Cove Vitamin &

only

catch is the Senator insists that he

not

South

Pharmaceutical

running for President, but

reelection
will

to

send

the

300

dele-

■

.

gate votes to the Republican

con¬

vention next year.

Some

longtime

politicians

on

Carl Marks
FOREIGN SECURITIES

observers

.Capitol

Hill

and
are

20 BROAD STREET

TEL: HANOVER 2-0050

assertedly convinced that Senator
Goldwater

genuinely

terested in

running for President

is

not

in¬

Common

•

Senate. The

about

o

Naval

n

the boom

Association

May 16-17, 1963 (Cincinnati, O.)

Jackson,

ganization, who has been in

own

the

for

address

'

Hollow Country Club.

at this time, Senator Goldwater

is

-

couple of

Senator

The
up

Day dinner in Tulsa;
will

Newtown
N

(Chicago, 111.)

1963

June 21, 1963

[This column is intended

Arizona has been growing louder
and louder in the Southern States.

he

-

a

IN INVESTMENT FIELD

is

Senator Goldwater.

Goldwater's Status

,

For

example, he spoke in Los

Angeles
flew

/

Kennedy

young

a

20-23,

Investment
Ob¬

Mississippi Republican

garner

for Republicanism in this
country.
It might
very well be that some

most

in

19-21, 1963

Canada

of

EVENTS

inside

race.

.

doubt

no

the

Miss.,'businessman, ^nd Chairman

of the

it would be

agree

psychologically

associates say that the Vice-Presi¬

dent is presently enjoying his role

Club,
-; / / V

Jasper Park Lodge."

that will favor Senator Goldwater.

Atlantic City or Chicago or some¬
where else in preference to Miami

reply. :
Some

the

pow-wow.

Republican

There

the

dignify the report by making

Golf

Investment

powerful candidate

a

if Goldwater

Texas,
for

run

Senate. He replied that he would
not

in

leading contender for

publican party

Senate.

in

back

might

the

Numerous higherups in the Re-^

was

Congress

recently

while
he

in

Senate

as

since

Johnson

and

role

Only

whether

Mr.

Associa¬

Conference

June

Democrats.

Southern

the

years,

1964

a

the

Wirt Yerger,

of

Republicans might

shindig in Dixie.
24

Securities

Outing at the Arono-

Pick-Congress Hotel.

COMING

be

incumbent Pres¬

an

President

gates

the

cited

and

a

going to be
for

expressed

has died down.
For

eyeing

convention

a

now!"

prefer not

Presidential

tact

first

would

in

hotels, is

but this opposition

reasons,

against

run

South. Miami Beach with its
many

(

in

segments of the Dem¬

opinion that Mr. Johnson

drag

a

1960,

furthermore he
to

to

six-year term, and

a

track

already full

already

of 40

out

that

wants

in 1960.

was

the Republican chief¬

as

are

For

managed his brother's Presidential

in

is

hours

rationalize

might have

Convention city.

Attorney; '• General,,

They

Goldwater

who

speculation about the Republican
outlook

Thte

1964.

in

Senator

ident

Convention Site

as

Washington

Not Interested in Returning to the
■

1963/(Philadelphia, Pa.)

Supplement July 11, 1963.

1964

Republicans May Choose Miami

the President each Tuesday.

-

Pittsburgh

:

CHRONICLE'S Special Pictorial

viously

Congressional

30

long

a

reelected for

course

year,
*

work

carries

governor

a

vention.

city he meets

Democratic

14,

the

at

/./ /

.

Bankers

good friend

a

Vice-President

quent visitor at the White House.
When he

Pittsburgh Annual

Municipal

"What do you mean YOU'D like the same?—YOU
only

Governor John Connally

this

a

June

ap¬

position.

are

inter¬

is

he

County Club. '•

Investment

Kennedy

might dump Mr. Johnson,

Club;

mink

the

Capital

while

He appears to be in a favorable

other's

some

that,

ocratic convention.

that have cropped

the/Nation's

in

up

to

rumors

of

Outing

Square," Pa.

acumen.

puts

Club

Spring

Vice-President's

enthusiastic

an

substantial
mittent

Bond
a

tion Annual

time.

political

feel

Party

Inn; June 14

14, 1963 (Pittsburgh, Pa.)

ever

state.

City,Mo.)

Johnson is sent to the next Dem¬

relations, plus the fact

each

June

Philadelphia

and

and Vice-President

cordial

on

that

'■

Kennedy

who

from

at

Club,

Summer

Hilton

at

at Meadowbrook

became

vote

Country

Annual

position will be strongly enhanced

good friend

a

both; President

sociation

if

ad¬

//

to

renomination

Attorney General Robert F. KenHouse

the

of

friends

•

White

popular

New

Day

City Security Traders As¬

parently has the Vice-Presidential

the. blessing of President Kennedy,
and

Tower,

Johnson,

of

Field

June 13-14,1963 (Kansas

Kansas

—June 13

Confederate

Some

running for renomination with

nedy,

Mr.

•

.

Rye, N. Y.

party, Texans

G.

Club

Westchester

Field

Now Mr. Johnson

course.

the

Johnson

Senator

Bond
Annual

30th

v,

(New York City.)

Municipal

Presi¬

1960

7, 1963

York

Star

/

John

by

former

,

Kennedy-Johnson

of

won,

elected

in

V
\

...

June

Demo¬

the first Republican senator

seasoned politi¬

do.

The

is

it, but he changed his
many

the

Republican

a

on

like

Lone

the

Vice-President

Senator

mind

in

succeed LB J.

that

a

Then, to make things

race.

for

second place

a

in

and the Democratic

John¬

Mr.

maintained

The

barely

column

bad

•;

doing

speech-making

Texas.

cratic

Democratic

1960

native
was

re-

President of the United States.
Prior

of

State

Vice-

as

deal

Section June 13,

is

•

&

Co. Inc.

f

Warrants

Bought—-S old-—Quoted

SPECIALISTS

NEW YORK 5, N. Y.

and

Annual
.

'

-

Report available
on

request.

-

:

■

,

TELETYPE 212-571-1685

1ILL, THOMPSON & CO., INC.

I

70 Wall Street, New York S, N. Y.
Tel. WH 4-4540

Tele. 212 571-1708

I

I

;