The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
%e
Reg. U. S. Pat. Office
ESTABLISHED 1839
New York
Number 5952
191
Volume
AS WE SEE IT
1956 and 1957 plant and equipment expendi¬
|£diforia/
business were running at all-time
and by a very substantial margin — business
analysts never tired of referring to the stimulus that was
thus being given to the economy and of wondering what
was to happen when, as believed inevitable, the rate of
such outlays returned more to usual levels. Of course,
there was a decline in 1958, but the figure never did get
back down to, or even very near the peak prior to 1956,
and by 1959 was evidently and definitely on the rise
again. Now it is quite generally believed that the volume
of such expenditures this year will rise to very nearly
Cents
Federal Mutual Savings Banks
IWhen in
tures by American
[highs
50
Price
7, N. Y., Thursday, May 19, 1960
Minimum Annual
—
..AG''
•
■
''"'•.Ad'
:'/■
describes
Senator
his
V-
bill
include such features
as
And
by de¬
highways.
satisfy the basic housing needs arising
will require great effort.
to
But
4
collaborate with industry to
even
if
we
successfully meet these basic needs
will, in effect, only be standing
we
borrowing. The former would
have various Federal agencies
the housing supply
from all of these sources
io
compulsory deposit insurance and
central fund for temporary
new
Just
creating ia
The latter
system of Federal Mutual Savings banks.
new
for
annual
minimum
providing for
residential units
large number of
removed from
be
molition, conversion to other use, or to make way
/
v.;
offers to father legislation
housing goals and
a
will
United States Senator (D. Ala.)
-
-
and
Housing Goals
Moreover, a
By Hon. John Sparkman*,
I
-
Copy
a
own.
still.
cannot bb satisfied merely to hold our
America's families want and deserve an
we
peak year, ; 1957. It is, of course, evi¬
that outlays of this sort on any such scale as this
help formulate housing goals and the agencies would fix
upgrading of their housing supply, and the major¬
policies designed to stabilize orderly housing growth.
I give business generally a boost. During recent years
they have without doubt had a good deal to do with the
record consumption expenditures of individuals — since
in the course of spending by business very large sums
Proposals that will be considered by Senate Housing Sub¬
ity of these families will have the financial means
to do something about it. We can anticipate a, 50%60% increase in Gross National Product during the
next decade and this increased output should gen¬
a
billion over the
dent
disbursed to individuals.
are
The relation of all this to
according to
committee,
of
all, but it seems to us
that it is quite possible to become so much engrossed in
this aspect of the phenomenon that some of the other
significance of it escapes us. It is well to note the general
nature of the purposes for which these expenditures are
being made. On this point the First National City Bank
I in its May letter has this to say:
"Significantly, 80% of
11960 expenditures in manufacturing will be for machines
and equipment, and only 20% for buildings. The em-,
phasis is on modernization, not on expansion. The main
reason for this is the already ample capacity in many
| lines. Manufacturers reported (in a recent McGraw-Hill
! survey) that at the end of 1959 they were operating at
85% of capacity, compared with their preferred operat| ing rate of about 94%. On the whole, capital outlays in
I960 are expected to add about 5% to existing capacity—
the smallest in 10 years, except for 1958. Outlays on
research and development, at a record $9 billion in 1959,
expected to rise to $9.6 billion
(Continued on page 25)
Sen. Sparkman, are:
establishing
secondary market for conventional loans and an inde¬
a
pendent board to determine FKA-VA interest rate policies.
widely heralded "golden 60s" has
This door is opened -only
The door to the
the so-called business cycle
is, naturally, of real interest to us
are
certain
opened.
been
last
at
slightly at this time and none can say how far the
road ahead will take us nor how many detours lie
before
The
us.
thing we
one
be sure of is that, if the
forecasts
are
anywhere near
may
right,
be
will
needs
so
great
as
But the key for
even
availability of funds tO\finance the millions
houses and apartments which our people
must have in the 1960's depends ultimately on the
volume of real savings.
Anq because most of our
The
of
that
we
nation and I have no doubt
tinue
to
particular ways.
nations—depends upon
and institutions.
stand idly by
This does not mean that we must
and allow basic human and
we
are
a mobile
that families will con¬
another, from
in pri¬
public life to guide and to stimulate our
economic efforts along pathways that will lead
to the most efficient use of our nation's great re¬
sources.,
A basic ingredient of our private enter¬
vate and
Sparkman
cities, and from cities to suburbs.
economic needs to go
On the contrary, it is up to leaders
unmet.
Sen. J. J.
migrate from one area to
to
farms
cannot
voluntary actions of individuals
households than
Furthermore,
now.
we
in
save
—unlike that of totalitarian
addedypopulation is expected
to^tet: grouped into 10 to 11
more
to
or
people in our country by 1970
than w£ have today, and this
have
force people
to save more
They are free to
choose the ways in which they will use their in¬
comes just as they are free to choose the ways in
which they will earn it. Our economic organization
however,
ing the next 10 years.
We will have 35 million more
ullion
greater will be the supply of home mortgage
In our free enterprise, democratic society,
credit.
/should produce a minimum of
16 million nonfarm units dur¬
we
new
the
to
our
has'.estimated
mittee
opemhg the door to better hous¬
ing is the availability of mortgage funds.
massive pro¬
ductive and financial resources.
The Senate Housing Subcom¬
strain
perhaps one-fourth greater—in real
1960.
terms—in 1970 than in
mortgage money comes from financial institutions,
the more savings channeled into these institutions
housing
nation's
our
erate incomes
prise economy," and indeed the strength of our
democratic system, is our
(Continued on page 22)
Underwriters and distributors of
REGISTRATION—Underwriters, dealers and investors in corporate
securities are afforded a complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 34.
SECURITIES NOW IN
STATE, MUNICIPAL AND
PUBLIC
Public
State and
of Securities of
UNDERWRITERS
Municipal
Lester, Ryons & Co.
STATE AND MUNICIPAL
and
BROKERS
So. Hope Street, Los
623
HAnover 2-3700
BONDS
chemical bank
Burnham and
New York 15
YORK ANO
AMERICAN STOCK
j
Net
To
UNDER,WRITER,
Stock Exchange
;
4, N. Y.
'
BRIDGEPORT
•
PERTH AMBOY
Southern
DIRECT WIRES
TO MONTREAL
A,
On All
2 BROADWAY
NEW YORK
Association
United States Government Insured Merchant
and
International Bank for Reconstruction
and
Development (World Bank)
THE
Chase Manhattan
BANK
Pershing A Co.
ROYAL BANK
HAnover 2-6000
offer
to
buy
the
FOR
CALIFORNIA'S
CIVIC
above
IMPROVEMENT
righto
which expire on June 27, 1960 at
the current market.
t
BONDS
MUNICIPAL
Right*
Direct Private Wires to
Toronto, Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax
MUNICIPAL
AND TORONTO
Goodbody &
—
OF CANADA
.
CANADIAN DEPARTMENT
Teletype NY 1-2270
MEMBERS NEW YORK STOCK
DALLAS
•
Incited
Commission Orders Executed
Canadian Exchanges
Stock Exchange
STREET
on
York Correspondent
THE
Maintained
Banks and Brokers
Block Inquiries
Members
BROAD
Active Markets
Dealers,
securities
DEALER
25
Inquiries Invited
New
We
ESTABLISHED 1832
NEW YORK
Claremont, Corona del Mar,
canadian
T.L.Watson&Co.
American
BANK
Teletype: NY 1-708
Bond Dept.
-
New York
Cooperatives
Federal National Mortgage
California Securities
e
m
Federal Home Loan Banks
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
OF NEW YORK
Company
EXCHANGES
15 BROAD STREET, NEW YORK 5, N.Y.
• Dl 4-1400
CAUL*, COBURNHAM
TELETYPE NY 1-22SE
MEMBERS NEW
30 Broad Street
in
Oceanside, Pasadena, Pomona, Redlands,
THE FIRST NATIONAL CITY
BOND DEPARTMENT
>■*
Encino, Glendale, Hollywood, Long Beach,
securities
Federal Intermediate Credit Banks
Marine Bonds
Offices
utility
trust company
COMPANY
Exchange
Members Pacific Coast Exchange
foreign
&
new york
<Bowthu>e4t
Associate Member American Stock
railroad
public
Federal Land Banks
Banks for
Members New York Stock Exchange
industrial
FIRST
Angeles 17,
California
Securities
DISTRIBUTOR
NOTES
Dealers in and Distributors
Housing,
DEALERS
telephone:
AND
AGENCY
HOUSING
BONDS
U. S. Government,
Co.
EXCHANGE
1 NORTH LA SALLE ST.
CHICAGO
Dominion Securities
Grporatiom
Associate Member American Stock Exchange
40
Exchange Place, New York 5, N. Y.
Tel. WHitehall 4-8161
Tele. NY 1-702-3
BOND
DEPARTMENT
Bank
of
America
N.T.&S.A.
San Francisco
Los Angeles
Chronicle
The Commercial and Financial
2
For Banks,
Brokers, Dealers only
If it's Over-the-Counter
I Like Best...
The Security
Say
of experts
and advisory field from all sections of the country
1. Primary markets in more
400 unlisted
Buying Department
J. N. Russell & Co., Inc.
&
Syndicate
than
O-T-C experience.
3.
Nationwide private
4.
stock
it could be 500 per
Mohawk Rubber Co.
dependable executions.
Established
Stock
Teletype NY 1-40
BOSTON
PHILADELPHIA
•
Wires
to
SAN
FRANCISCO
Principal Cities
19560
Counter Market.
IN JAPAN m
***
Write for
our
Monthly Stock
Digest, and our other reports
that give you a
pretty clear
picture of the Japanese »
American Stock
economy as a
The Nomura Securities
61
Co.,
Ltd*.
This is
not
t
BOwIing Green 9-018?
an
offer
orders for any
or
solicitation for
particular securities
1950687
be
is
one-fourth
sell
for
than
WALL,
STREET
NEW YORK
5, N. Y.
the
price
Liquid
DIgby 4-2727
Sales
$0.75
20,842,000
31,656,000
3.20®
$1.25 Cum. Conv. Pref.
DIVERSA, INC.
Common
to
present
plant
alone,
which
JOHNS. LEWIS,
of
As
current
t*.
of
Anniversary 1933-60
the
Phone MAin 3-3040
105
tl.00
193/4
the
with sales
million
in
1958,
company
$3.5
acquisitions during 1959 of
Ohio
Electric
and
its
Manufacturing
wholly-owned
The recent acquisitions
year.
share.
common
Yearly
a
>
ing
in
magnets
conducts its
tions
in
the
country
and
manufacturing opera-5
four
modern
Howell,
Why
22
»/2
$1.00
a
with
no
annual
the
an
offer
same
to
are
the
certain
seems
to
enhances
of
Co., Ltd.
Tokyo, Japan
Brokers
&
Investment
Bankers
111 Broadway, N. Y. 6 COrtlandt 7-5680
Consumer
Finance
Comp antes
...
We
seek for retail off-street place,
blocks
ment
of
inactive
stocks
common
of
preferred
dividend-
paying small-loan companies, sales
finance companies, or factors.
•
ALBERT J.CAPLAN& CO.
Members:
Boston
1516
&
Phila.-Balto.
Pitts.
Stock
Stock
Exchange
Exch.
(Assoc.)
LOCUST ST., PHILA. 2, PA.
figures. The company expects
to post sales in the current year of
between $19
and $20 million, and
management "guesttimates"
ings of
between
$700,000,
$750,000.
would
On
this
amount
share
common
basis,
to
earn¬
earnings
$1.50
over
BOUGHT
—
SOLD
and
per
L. A. DARLING
the
on
453,658
shares presently outstanding.
The
stock-
about
American
it
selling
now
' share
per
at
the
• on
Stock
Exchange where
admitted to trading in the
was
early
is
$12.50
part
of
1959.
On
the
esti¬
mated earnings of about $1.50 per
sharfe,
the - common
stock
of
Electric
slightly
is
selling at a
earnings ratio of
than
more
Dividends?
7V2
The
to
company
3% stock dividend in
a
1959 and last
in
paid
July of 1958
Since
the
has been
dends
the last
a
(150
a
■
Members
'
■
•
Midwest Stock Exchange
Detroit Stock Exchange
1051
Penobscot
DETROIT
Building
26, MICH.
WOodward 2-3855
Branch Office
—
DE 75
Bay City, Mich.
paid
share).
per
how W0fA
historically
dividend payer—divi¬
omitted only once in
18 years—it seems
the
MORELAND 8 GO.
December,
cash dividend
company
were
1.
will
company
likely
consider
dividends
earnings become
a
reality.
and
manufacturing
its quality products.
newly-acquired products
also
well-known
for
their
quality, augment and
correlate Howell's product line to
make it one of the most complete
and diversified
Howell's
in the
industry.
Named Director
Electro-Tec
manufacturer
Corp.,
a
leading
of
electronic com¬
ponents for industrial and
military
application
of
William
announces
the election
Spencer Palmer
as
Mr.
and
management
be construed
buy,
any
as an
offer
security referred
to
to
sell,
or
herein.)
Palmer
is
treasurer
vice
of
president
Nucleonics,
Chemistry and Electronics Shares,
Inc.,
Corp.,
a
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
a
science-growth
mutual
team established its astuteness be-' fund. He
is also vice president and
young
N. Q. B.
a
director.
treasurer of Templeton, Damroth
to
Affiliate
Yamaichi Securities
Now to get to the financial facts
several
for
_
circumstances
solicitation of
blood
lines,
having paid 250 in
quarter
attractive
an
There
excellent
date.
on
Howell
The recent acquisitions resulted
an
infusion of new manage¬
The
stock
Company
York, Inc.
reasons.
.
following each stock
stock
dividend.
11100%
is
situation?
teemed
§25
of New
and
earnings
for 1958 amounted to 15 cents per
share.
ment
t2%
(This is under
as
34
531J/2
stock dividend.
rate
field
growth in
long-term prospects of the
company.
The
air
conditioning
field, for example, is still in its
infancy.
new
know-how into the old-established
Howell
organization,
long
es¬
14
1.00
first
tremendous
the resumption of cash
if the orojected
16Vh
48I/a
U.55
dividend
write
Yamaichi
Securities
or
that
15
is
or
to
In
Low
19 V*
tl.10
Mohawk
Seattle 4
High
§To
Call
and
the air
conditioning, pump, automobile,
machine tool, steel, scrap handling,
heating and ventilating and other
vital industries. Despite the fact
that it is selling in these highly
competitive fields, the company's
management is.confident that its
streamlined and aggressive sales
organization and broadened prod¬
uct. line will more than meet the
projected price
in
$1.00
dividend.
information
current
mer¬
motors
magnets
J.,
about
Dividend
i
electric
its
lifting
plants
r-~:*Range—
♦Adjusted,
130%
ratio
It
industry.
one
Howell
2.1 to 1.
1000 Second Avenue
a
a marked impact on
earnings, which amounted to
$335,954, equal to 74 cents per
outstanding.
position showed about
a
STOCKS
For
Mich., Plainfield, N.
The Cleveland, and Dayton, Ohio.
stock
and
JAPANESE
more
a
is not dependent
company
1959
Dec.
§13.47 per share in working capi¬
tal
up
foreign markets.
also have had
pro¬
a
dividend.
Teletype No. SE
the
is
31, 1959, Mohawk
$4 million 15-year, 5.85%
debt with a large insurance com¬
pany and only 492,070 shares of
Investment Securities
27th
Over-all
production.
Year
i
a
achieved
mo¬
492,070
of the entire industries'
financial
upon request
has
From
about
the
The tread rubber produc¬
currently estimated to be
common
Report Available
year
Pizzini
Howell Electric is now one of
duction of Mohawk is about twothirds in passenger tires and about- the leading independent manufac¬
turers of electric motors and lift¬
one-third in tread rubber.
had
setting
continue. This potential
W.
electric
Electric within
Howell
Company
and best operated plant in the in¬
annual
branch offices
and
integrated
electrical
B.
The
considered to be the most efficient
DIVERSA, INC.
and
markets
The
subsidiary Kingston-Conley, Inc.,
shares.
'Estimated.
and of Leland Electric Company
Three plants located in Akron, accounted in large
measure
for
Ohio; West Helena, Arkansas and the sharp rise in sales.
Sales for the current year should
Stockton,' California,
give
Mo¬
hawk strategic locations. Produc¬ total close to $20 million since
tion today stands close to
7,000 1959 results included Leland sales
passenger
tires per day in the for only the last three months of:
is
our
cutting manufactur¬
broadening domestic
costs,
next five years.
Howell sales last year were more
than $13.3 million.
2.48
36.000,000s
about 8%
to
its mettle by
ing
shooting high and company
aspire to a sales goal of
around
$50
million
within
the
commu¬
tors,
2.16
tion
Birmingham. Ala
Mobile, Ala.
Direct wires
company's capital
stoek. The team is further proving
officials
finan¬
past
1.14
25.513,000
dustry.
6, N. Y.
NY 1-1557
of the
dilution
the
of
Earnings?
$15,126,000
fAdjusted
Exchange
New Orleans, La. -
is
old
Per Share
Arkansas
Trading Markets In
the
cial
of
Statistics
1957—
Export*—Imports—Futures
to
look;
____
any
"
Exchange
Stock
view to possible purchase. Howell
ing a new and
changing face
to
ators, etc.
1956
—
qualify as
relatively
nity.
1953
Refined
seems
45-year
companies, fleet owners and oper¬
Year
—
one
tires and this
Long known
cost savings appeals to most major
for its high quality
consumers such
as truckers,
taxi
SUGAR
Raw
is
history, How¬
ell is present¬
replacement
Pertinent
so-
Despite its
should equal the num¬
replacement
tires
sold.
less
And
Street.
stock.
popular and in the next
one-half
99
sales
a
Retreads
new
can¬
undiscovered
years
of
without
effected
was
The Howell organization is ex¬
pansion-minded. Its young
and
able
management team is con¬
stantly
looking
at
other
com¬
panies in related fields with a
a
in retread tires as becoming more
five
York Stock
American
selling challenge of the future.
to
tremendous growth
potential for many years to come.
Industry forecasts point to sales
more
which
however,
today,
increased
for
reason
yond doubt by the advantageous
acquisition
of
Leland
Electric
company,
registered
60 million
the
period ally non-existent. Howell Electric
nation's roads
the
Exchange (AssocJ
"sleeper" stocks are virtu¬
field, estimated
promises
and
Wall
of
yons
called
which
about
/■
Exchange and
few secrets in
are
Motors
on
one
and
ber
LAMB0RN & CO., Inc.
There
Net earnings per share
quarter, rose 22% to 570
470 per share last year.
The passenger car
cars
Broadway, New York 6, N.Y.
Telephone
contra
\ ■"
<.
_
m
900,000 in sales in the same
the
Members New
HAnover 2-0700
huge
Howell Electric Motors
last year.
to
whole^
re¬
City
Y. Stock
N.
Members:
ported sales of
$6,976,000 ill
Morton A. Cayne
the first quarter of 1960 which is
an
increase of 18% over the 35,-
in
New York
in
tires.o
Opportunities Unlimited
'
19 Rector St., New York
chandises
Partner: B. W. Pizzini & Co.
recapping
Mohawk
Steiner, Rouse & Co!
Members
on' any
B. WINTHROP PIZZINI
\
used
ber
-Mf-
'
rub¬
tread
2):'^:;-
The
very
ufacturer
man
of
Over-the-
the
in
traded
is
It
important
CHICAGO
•
(Page
;i
Securities
Bought—Sold—Quoted
efficient
sales
force. The company is also looking
27 xh, is "The Security I Like Best."
into
the untapped
potentials of
currently selling around
common,,
tire
a
and
how"
"know
ability to continue the remarkable
record of the past few years.
Of
course,
Mohawk Rubber
industry and
also
the
have
who
replacement
is
fortunate to
management
indeed
is
have excellent young
only
the
a
company
fastest
company
with
Exchange
120 Broadway, New York 5
WOrth 4-2300
the
America.
deals
1920
become
growing tire
This
Associate Member
American
has
it
in
ment
share or more.
presents a very
and attractive invest¬
growth industry, the
interesting
-manufacturer
in
Corporation
Rubber
Company has manufactured tires
of the highest quality and since
1956
New York Hanseatic
While this stock
Mohawk
The
1913
Since
5. Fast,
Pizzini, Partner, B. W.
& Co., New York City.
throp
and based on
payout in the past three years,
the
Broader Coverage.
wire system.
Pizzini
be
supple¬
extra in the last
may
an
Louisiana
Win-
Motors—B.
quarter of this year
(Associate)
Stock Exchange
with
mented
Exchange,
Exchange and American
Midwest Stock
rate
dividend
Electric
Howell
this
is not unreasonable to assume
Cleveland. Ohio
securities.
Members: New York Stock
2. 40 years
quarter dividend having
payable June 30 to
of record June 10, 1960.
It
been declared
of:
A.
Co.—Morton
Cayne,
Syndicate
&
Buying
Dept., J. N. Russell & Co., Inc.,
Cleveland, Ohio. (Page 2)
second
MORTON A. CAYNE
For the combined advantages
Selections
Rubber
Mohawk
Call "HANSEATiC"
Alabama &
Participants and
Their
favoring a particular security.
participate and give their reasons for
Week's
This
Forum
which, each week, a different group
A continuous forum in
...
in the investment
Traders
Private
Thursday, May 19, 1960
.
(2150)
mutual fund management
company.
—
—
.
.
of
20-Year Performance
35 Industrial Stocks
FOLDER
ON
REQUEST
National Quotation Bureau
Incorporated
46 Front Street
New York 4.
H. Y.
Number 5952
191
Volume
.
.
The Commercial and
Financial Chronicle
.
(2151)
3
The Stock Market-
Thoughts and Observations
Erpf,* Partner, Carl M. Loeb Rhoades
By Armand G.
New York
CONTENTS
AND
Analyst reminds his colleagues of fundamental changes affecting the
stock market outlook which investors tend to forget—especially when
cloud appears on the horizon. Mr. Erpf observes
we
in
are
desirability of
1
equity to
an
dispel the ignorance
ing
other
We're
—
we
stay
them!
Securities
Dept.
U.
Cobleigh
Telephone:
4
_
WALL STREET, NEW YORK
Whitehall 4-6551
7
Ending the Ceiling Rate to Solve Withdrawal
Problems
—Charls E. Walker.
We Must
misconceptions regard¬
or
buy
Obsolete
Oil and Gas
Securities—Gilbert H. La Piere__
Free
—William
capitalistic institutions.
our
and
3
Thompson-Ramo Wooldridge Co.—Ira
opment of his profession from "croupier to security analyst," submits
a list of 11
items dealing with the changed role of analysts, and
looks to analysts to
skip after
sell obsoletes.
Generous Kind
here
99
desired for immediate income. The writer hails the devel¬
than those
Cover
_
a
groupings and includes suggested substitutes for bonds
try
the
—Armand G. Erpf-_______——
modern estate building portfolio containing six broad
investment segments which recognizes the increasingly blurred indus¬
envisages
they
The Stock Market:
Thoughts and Observations
.
bond position. He
a
The Fugitive Kind
page
Savings Banks and Minimum Annual
Housing Goals—Hon. John Sparkman
real
a
1
...
Federal Mutual
postwar period characterized by a more appropriate earnings mul¬
tiple figure than prevailed during the past 25 years, a more normal
earnings trend, an absence of the numbers game for the time being,
and a still greater
COMPANY
City
Articles and News
a
JCHTflMin
B.S.
& Co.
greater
9
washington
Ourselves From Mistaken Notions
McChesney Martin, Jr
__________
10
industrial
11
_
baird-atomic, inc.
Do
The Market
ing of the business cycle.
This
compulsive buying movement has
now ebbed and therefore
the price
farmers meet
over
the
cracker barrel, the first thing they
do is to talk about the weather
and its effect on the crops. After
the ritual of
When
such
of
of
accord¬
Erpf
together
over
sunshine
or
will
After
uninvested
they
as
that
to
in
the
on
a
stock
a
pointed out
chological factor
As
Jay Gould
market
that
the
once
tranquilized by the
hat
V-" '
:
equities
they
were
less
go
to
.2
-
.'
"
...
As We
workings
The
many years
heads
point
movement
of
:
•
who
knows
where
...
■■■.
;■-
'
•
The
local
of
over
then
Mutual
Funds
BarChris Construction
24
________
NSTA Notes——
levels
/ Observations—A.
Our
becomes
the trend
next six
Reporter
Wilfred
on
May
■
Governments.-
29
Securities
Now in
—1---,
of
projections
the
Continued
on
page
1868
Prospective
Security
TELETYPE NY 1-5
1
Boston
Direct Wires to
34
Security
Offerings--—
Chicago
:
Cleveland
Los Angeles
43
Salesman's Corner
Chicago
Schenectady
Glens Falls
Worcester
Dallas
Philadelphia
San Francisco
St. Louis
16
.
The Market
The
.
.
.
and
You—By Wallace Streete___
16
_______
Security I Like Best——___
The State of Trade and Industry—.
NEED "HARD TO FIND"
2
__—
_____
5
.__
QUOTATIONS?
Tax-Exempt Bond Market—Donald D. Mackey
It
6
Washington and You—
YOU WILL FIND THEM
48
IN
NOTE:
ED.
Paul
Einzig's
article
was
not
received
this
week.
Bank & Quotation
the
30
Record
Twice Weekly
Copyright 1960 by William B. Dana
ary
Reg. U. S. Patent Office
B.
25,
1942,
post
Subscriptions
in
office
United
Possessions,
Editor
at
SEIBERT, President
SEIBERT, Vice-President
Dominion
Other
of
(general news and ad¬
vertising issue) and every Monday (com¬
plete statistical Issue —market quotation
records, corporation news, bank clearings,
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of
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year;
per
in
year;
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Salle
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and
per
rate
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Record — Monthly,
(Foreign Postage extra).
account of
of
the
exchange,
fluctuations
remittances
,
will
yoi\ the monthly prices
all
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securities
as
well
Over
as
-
those
The
-
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or
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year.
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J. MORRISSEY,
WILLIAM DANA
state
at
matter
York, N. Y., under the Act of March 8,1879.
REctor 2-9570 to 9576
GEORGE
Chicago
second-class
as
DANA COMPANY, Publishers
25 Park Place,
Every
(Only $45
Company
Reentered
CHRONICLE
FINANCIAL
CLAUDE D.
ST., NEW YORK 4, N. Y.
N.Y.
27
Registration.J
incumbent upon
analyze
inc.
40 Exchange Place,
HA 2-9000
of busi¬
months.
Mack ie,
&
4
___,
Public Utility Securities--.-
Members New York Stock Exchange
Newark
Singer, Bean
23
a
other
to
47
——
Teletype NY 1-1825 & 14844
tax
the
—
; News About Banks and Bankers
PREFERRED STOCKS
Albany
Electronic Associates
12
46
The COMMERCIAL and
Nashville
Struthers Wells
8
Bargeron
Indications of Current Business Activity.^
of
billion,
$150
all of us
to take counsel with professional
economists and their findings, to
HAnover 24300
.'r
48
_
and
t
subordinate
Founded
Baird Atomics
'
31
:
consumer
Spencer Trask & Co.
$
DIgby 4-4970
Cover
■
.
Dealer-Broker Investment Recommendations^-
•
i
(Editorial)
From Washington Ahead of the News—Carlisle
speculative foot¬
a
spirals, and monetary
management in the place of the
mechanics
of
gold,
all become
is
See It
'
Coming Events in the Investment Field
v
/
Broadway, New York 5
27
out
downward
ness
i
WILLIAM
V
39
»
.
itWm
much
so
life.
curb¬
have specialized in
TELEPHONE
'
Z
per
forces, such as
the so-called $10 billion for re¬
search
and
development,
the
power
of the unions to prevent
"The
we
J. F. Reilly & Co., Inc.
21
proletariat into the middle
These and
dangerous
25 BROAD
*'
Bank and Insurance Stocks__.
Y
the
million
3
of
consistently they will
nomic
'
Published
For
18
com¬
oppression in¬
stead of one of the great constants
in
stabilizing the nation's eco¬
up;
a
Finally Coming Into His Own
Regular Features
India
mountain
conviction
used to be with
Saver Is
Badger
Yes, That and More!
...
marvelous
and
psy¬
said,
not
C.
J. Stanley Baughman Says Mortgage
Money Will Be Easier__
events
eral
it
goes down
after we put it up."
the pubMc
had put the,market
up
nicely on a compulsive
buying
?Pree, sparked by the valid prem!se
a recovery in
business, inensified by the fear of
inflation,
t an
of
government spending at Fed¬
had deteriorated.
does
17
important
total
run
market
bowling corp.
15
___
long-term
so
traction from immediate
changed sufficiently to revise
or the
interpretation,
toe estimate
it was
net
—Sherwin
so
spend
U.is money; and the increase in
fixed savings via social security
and pension funds becomes a sub¬
seminar of corporate
executives,
the position - since then has
stock
which
course
grave
ball—and
how
and
not
trend.
class, becomes
occa¬
quick
,
p
ensues.
The
the
purchasing.
ago, I had
present
.through
a
Forgotten Man, The
increase in population be¬
a
burden rather-than
an
the
of the
have
once
:
of america
...
A few months
sion
of
& development
14
Sound International Monetary
System
a
colder
a
upon
loom
interest
in
with
grasp the great opportu¬
1932 with cash in hand
coup
alico land
i970 Depression
Possibility of World War III—Roger W. Babson____
What
population increase
asphyxiates progress. Discretion¬
ary spending, which is on the rise
a
the
a
margins?
sobriety,
to/the
as
comes
been, secretly hoping they will be
make
to
as
asset / and
The
century.
of
depends.
secular
cash and equivalents in an
appro¬
priate degree; and the skeptical,
who always view with
alarm, will
to
profit
foundation
annum
115%; the cautious will maintain
nity of
return
pound
investment position from 100% to
able to
set
With
tion
buoyantly inclined
continue bullish, varying'their
remain
12
Upgren
—Philip Cortney
during the next year, or the next
quarter, undermining the convic¬
discussion, whether
casual/ or
penetrating, the chances are that
temperament \ will
prevail
over
intellect.
Cause
can
crown aluminum
'
.—____
during the bull phase succumb to
over¬
hanging the stock market.
R.
How to Get
a
about
doubts
a
cocktail, there is the same ritual
of gravely weighing the possibili¬
storm
aftermath
How
much
out. So,
investment com¬
the
gathers
of
to
aspects which
been accustomed to carry
ties
recession
happening
nomic
Armand
long
munity
normal
a
—Arthur
Underlying the psychological,
there is its interplay with the eco¬
ing to his own
(-**'„
nature,
they
when
The Affluent 1960's
expiry
there
in?
next
this
which,
too,
as
this
enthusiasm,
evaluation of securities
each
—Edward N. Chapman__
the
competitive yield of bonds?
own pro¬
have
With
emotional
Foreign competition?
instead
grams
V1
When will
is
yet sticking to
their
overrides
the
sunshine,
of
except
intense
parade of reservations.
to the pos-
i b i li t y
s
which
impregnability.
of
follows
disturbed
storm
\ to
sag,
continues an
A Medical Doctor Offers
Investment Policy Advice
ordinary yardsticks of yield, earn¬
ings, asset position, and industry
perhaps
slightly jarred
as
tends
there
enthusiasm
they return to
their
chores
and
shares
where
review,
a
Commercial Banks Want
Equality With Savings Banks
—-Earl B. Schwulst
in
for
subscriptions
and
advertisements
be made in New York funds.
25 Park Place
New York 7, N. Y.
REctor 2-9570
Financial Chronicle
The Commercial and
4
.
\
.
Thursday, May 19, 1960
(2152)
of sales will be derived
of endeavor.
for
the
company;
now
than 60%
Thompson-RamoWooldridge
Fine
notes
on
and
petence,
this, diversified
major
its
its technological com¬
expansion in the field of
company,
current
this
remember
investors
"when
it "was Thompson
Products, majoring in components
and parts for autos' and aircraft,
The
joining
with Ramo-Wooldridge, two years ago, put the
company
into a new order of
magnitude and gave it classification
among
investors
as
a
when
(1956)
year
Again
1959, however, TRW experi¬
a sharp and most favorable
In
These
indebted to Vance,
are
we
computers by
disputably demolishing one of the
to con- turnabout. Sales advanced (over chief illusions in the mutual fund
1958) by 23% and attained an and
investment
company
com¬
trol lathes and milling machines,
The machine tool industry is quite all-time high of $417.7 million munity. A rebent issue of Brevits,
with a net of $3.02 per share; and
the biweekly letter published by
enthusiastic about this system as
percentage
gain
(year-to- these Fund sponsors and distribu¬
it permits complex milling and the
tooling
work
to
be controlled year) in missiles and electronics tors,
which we
cited
in our
is automatically from punched tape, was most heartening—87%.
column of March 10, reported a
"growth electronic" which
top billing under the prevailing
fashions in finance.
Ramo Wooldridge had gained
missile programs.
Atlas and Titan
is
still very important but the accent
has been changing. For 1959 about
26% of sales was from new and
replacement parts for cars; about
32%
from
assembly units and
parts for manned aircraft;
and
business
aircraft
and
Motor
mmtary
giant pected to reach another
new
a
use
brain> tbe RW-400 data processor
has been perfected.
This is referred
to
as
a
1960?
for
Sales continue strong and are ex¬
Giant Military Brain
por
outlook
the
What's
"polymorphic corn-
puter" because of its many forms,
it's big or little as you wish. Just
push a button and, in less than a
second, the giant computer can
new
high,
probably
around
$440
million.
Profitability appears on the up¬
grade and certain analysts are
expecting
an
improvement
in
pre-tax margins. This percentage
was
10.6%
in
1951.
It slipped
5.5%
to
down
in
1958.
For
1960,
be converted into several smaller
independent computers, each of projected as
able.
which may be separately conContinued
around
2%
from
miscellaneous trolled to perform special tasks,
the
development of new tech¬
sales. But the most exciting part Because of its flexibility and verwas the 40% of sales coming from
satility this RW-400 is highly use- nologies and new products may
be expected as a result of the R
electronics, rocketry, space ships ful in military work; and is beand D program. Over $12 million
and missiles.
~
lieved to have great potential for
was spent in research and devel¬
In this last category a consider- industrial
and business applica- opment at TRW in 1959 and a still
able business has, of course, been tions later on.
i
/
larger outlay has been outlined
done with the
government; but
Other advanced electronic de- for this
year.
mindful
of
the
painful defense vices
under
way
include
the
Capitalization at TRW is quite
stretch-outs as recently as 1957, equipment for electronic language
simple: $39,948,900 in funded debt;
TRW is increasing its stress on translation and electronic control
81,708 shares of $100, $4 preferred
non-military electronics.,
of superhighway traffic.
stock (callable at 107); and 3,119,-
,»*« SSSWgSS-S
decided, enjoyed a special position as techback, to develop its njcai civilian director for the Air
own proprietary line of semi-con^jpprce Mspacp and ballistics pro¬
ducers. In 1954, its owtt company,
gram,
and is believed
to have
Pacific Semi-conductors; Inc. was
produced about $70 million in
formed.
Research and develop- sales in 1959 with eatings equivFirst
some
ment
the
company
years
have
here
resulted
in
a
superior product line, which has
been accorded a high degree of
acceptance in the industry.
In the
aient to
The
perhaps 60 cents
Teievision
p
{ TRW
•
h|d
in
-
d
.■
.
.c,
the field
share,
a
^
ni
calculate
deliver
the
and
adjustments;
signals
start
that
thermostats
that keep
the. plant operating at
maximum
efficiency. Sales to date
ing
plants
or
chemical and refin-
installations
but
cement, steel and
television,
in
of
•
.
cir¬
closed
education,
(recently
acquired)
produces a most sophisticated line of
pre-recorded tapes, tape car-
tridges, and records,
From the foregoing
it is quite
obvious that TRW is well placed
to
move
most
ahead
in
some
of
the
exciting phases of the elec-
in tronic business; and the
nuclear plants expects, in due
course,
company
that
more
compared with each other during
the past four years on the follow¬
mechanical
ing
opposite
each of these funds was placed
the
relative performance
notch
Then
order.
numerical
listed
common
selling
now
at
on
$62.
foregoing debt, $19,729,500
4Ys% debentures, converti¬
in
ble
and
into
common
at
$72.69 per
(through Aug. 1, 1962, then
higher prices). These deben¬
share
at
sell
tures
currently at 114;
the $4 preferred sells at 83.
Investors
tronic
interested
equities
showed
sults
year. The
crazy-quilt
calendar
next
the
a
"leading"
from ' 16th
finished
to
in
grow
may
stature
power.
in
and
did
1959
and
declines
ranging
follow-up study, the
a
reconstructed
is
planning
to
become
Stearns
York
York
&
&
each year, starting
an
equal amount of
beginning
with
1956,
money
placed
was
in
re¬
is
associated
Co., 72 Wall St.,
City, members of the
Stock
Exchange.
It
been incorrectly
previously
in
the
CHRONICLE
that Mr. Gutman would
join Bear,
Stearns & Co.
corded
best
the
market
during the
ance
end
that at the
first year,
the capital
of
the
transferred
was
with
during that
This procedure
Norman
associated
Pledger
the
Pacific
Coast
Stock
Ex¬
change. Mr. Green was formerly
with the trading
department of
First California
year.
Form
Company.
for
each
then
Logical Aspects
investment
logic also is in
full agreement with, the empirical
record, indicting the performance
test.
For
it
existence
falsely
of
portfolio
the
manager
Champion Co.
the
assumes
ability of the
to choose stock
issues that will
continuously show
comparatively better capital val¬
ue, and/or exhibit market timing
ability superior to his fellow ex¬
perts—both of which are actually
impossible.
In any event, for the prospec¬
tive
Fund
buyer, the criteria for
should rather consist
his choosing
realistic
of
that
and
tangible
not fortuitous.
are
factors
Foremost
these is the expense
curred,
both
continuingly
in¬
among
for
management, and, m the case of
open-ends, for the in¬
itial acquisition.
Such standards
most of the
for selection
are well spelled out
currently issued 1960 edi¬
the
"Investment
of
Trusts
and
View,"
and Edward J.
C. Russell Doane
Hills, published by
by
the
Institute
American
nomic
Research,
rington, Mass.
With
the
for
Eco¬
Great
of
Bar-
operating
gross
ex¬
the
being anywhere near equal,
closed-end companies which
sell
at
discount
a
shareholder
more
less,
annually,
will
the
cost
him
and yield
than
will
the
open-end fund which is sold with
a
load.
the
On
the basis
closed-end
his
actual
of his
holder
income
as
is
cost,
getting
well
as
his
theoretically
realizable
asset
value, at a discount; the open-end
buyer, contrastingly is getting both
at
premium cost.
a
The
was
Income Test
These authors find
through
year
amount
of
money
was
placed in
that
over
worst for the
preceding year, and
again at the end of that year, the
capital was transferred to those
five
funds
wor^t1 for
(that
is,
which
that
those
had
done
particular,
companies
the
time...
the
year,
'.a
5tf&cawwz'p
which
covered, held
to talk to
^ Talcott
preceding year.)
102
Funds
about Commercial Financing
-Value at Year-End1956
|1957
1958
1959
$100
$100
$91
$125
$130
100
109
112
164
169
100
98
81
117
126
100
98
95
143
149
100
101
82
120
$506
$461
$669
or
Our
fully
$706
your
credit
to
help
you
solve
firm's working capital
needs.
You
Best Five of 102 Funds
$100
Factoring
experienced
specialists will co-operate
132
$500
get flexible
and
plans
—VaJtip AV Yenr-Fnrl
at X Cftl 'IVlIU—
fast
*
1957
1956
$110
1958
$97
$11,7
action at Talcott.
1959
Call
$146
100
110
99
120
112
91
114
Co., Inc. has been formed with
offices in the Boyle Building to
107
100
128
111
104
134
147
$500
$550
$491
$613
our
visit any
offices.
142
100
or
132
100
of
139
100
$706
&
U WALL STREET
pion, President; Carl E. Chapman,
securities
William
business.
A. Cham¬
Vice-President, and William
Ramsey, Secretary-Treasurer.
H.
,
Remarkable are these results,
showing identical final net gains
through
switching
to
the
previ¬
James Talcott, Inc.
.
a
of longer than two decades,
Now's
the five funds which had done the
ROCK, Ark.—Champion
Members New York, American & Toronto Stock
"Exchanges
The
And
Then, conversely, again begin¬
ning with 1956, the same equal
Jan. 1
engage in a
Officers are
NEW YORK
category. The inconsistent
performance
records
are
intracategory as well as inter-category.
span
1956
LITTLE
Dominick
—
become
is
differ¬
such
particular
1956
& Company, Inc.,
210 West Seventh
Street, members
of
&
has
the
performed
Jan. 1
ANGELES, Calif.
to
had
Worst Five of
(Special to The Financial Chronicle)
Green
year.
further assumed
is
the
Pledger & Co.
H.
in
ences
inconsistency
with
positions from 102 through 98 for
N. H. Green With
LOS
in
re¬
perform¬
preceding
out of the 102 Funds
Dominick
shares
of the Funds which had
each
It
of
1959.
Co.,
correlated
not
pense
following has been
constructed assuming that at the
Join Stearns Co.
Shields
new
a
table
The
repeated
from
drawing comparative conclusions.
But the record of
fiction.
best
indicated
OF INVESTMENT SECURITIES
on
basis,
with the result further
substantiating the conclusion that
performance
consistency
is
a
invested
Gutman, who recently
trend
of the market
during the
period considered should be im¬
portantly taken into account in
of
Now, in
a
Funds—From the Investor's Point
Result
record
as
(determining the lever¬
age), and the relevant concurrent
tion
Calculations—Same
Changed
the
signed
45th
empirically the in¬
past performance, at
talization
in
Walter Gutman to
Walter
to
down
position.
elec¬
earning
the funds re¬
Funds which
had
UNDERWRITERS AND DISTRIBUTORS
the
peat its previous year's place but
the
other
four
leaders
showed
five
New
throughout the UnitedStates and Canada
of
56th
to
of
one
want to take
-
New
Correspondents inprincipal cities
re¬
The
1955
inconsistency.
five
funds
in
year-to-year
a
with
>
fund during
achieved by the same
in
NYSE
of
inm-
Tape
relays
actuators,
have been to
cuit
cult
parative management ability. In a
tabulation of the results of 102
investment companies, they were
is
shares
iin
continuous process plant to momtor the process, reduce input data
and
vances
the use of the
performance fic¬
to
past
the chief criterion of com¬
as
Of the
503
second look at Thompson-Ramo
Wooldridge common. At 62, pay¬
dustry
medicine, transportation, ing $1.40, it is selling at about 17
with a packing density of 20 milhankf'
military training, etc. times indicated 1960 earnings of
lion to the cubic foot. Despite its
Magnetic Recording Industries, in $3.60. Comparable electronic
super - miniaturization,
it will New
York,
acquired
only last shares such as Litton or Texas In¬
equal
or
out-perform
convenSS5
yf*r, has installed more than half struments sell at 27 times earn¬
In
May
of
1957,
THO
PCT
HmThiAH
the electronic language labora- ings.
i a *o.
J"HiH fai? tn
cn
tories n0w operating in schools (NYSE symbol) sold as high as
89%. The stock is a demonstrably
♦v??s year.
!!»
and universities around the country
finally, the Bell Sound Di- better equity today. ThompsonAnother PSI entry with a very vision has produced a top-flight Ramo
Wooldridge, Inc., has attained
bright future is the RW-300 in- une Qf hi-fi and stereophonic com- eminence in
automotive, aviation,
dustrial digital control computer,
electronic
ponents as well as consoles; and and
engineering and
It can be permanently tied into Bel
Canto
It should continue
Magnetic
Recording manufacture.
past year, PSI placed on the marf iV
*/r;™
ket a minute silicon Micr< -Diode,
lie
short-term
tion
the
gave
following year; those of 1956 fell
to positions from 29th to 99th the
following year; the leaders of
1957 fell all the way down to the
86th-to-102nd range in 1958; only
Division
portant ad_
empirical
that
record
basis — for each
calendar year the "performance"
reasonably attain¬
was computed and the five funds
which registered the best "results",
forward 1 motion
in
capital value-wise, were listed in
pre-tax margin of 8% has been
a
statistical
of
over
term,
<
to
the
relatively ' short
test of management
Of course, the Funds'
respective
category of objectives, their capi¬
least
pgi is a computer system
about
early prominence and prestige for
its technical direction of the Thor,
validity
enced
as
prior performers.
analyses of the record
demonstrate
Company for data in¬
&
Sanders
the worst
ENCORES
WITHOUT
per
share net reached $4.60.
markets for RW-300.
a third entry into
i
,
ously best-performing Funds
PERFORMANCE
below the
$2.86 was substantially
believed to offer broad future
are
•
11; >i,
WILFRED MAY
BY A.
1958, the company slacked up
receding to $340.6
record
company
stocks?
common
million, from $412.6 million a year
earlier; and 1958 per share net of
hon-military electronics.
Many
•
i
bit with sales
a
Some
the
about
what
In
Enterprise Economist
By Dr. Ira U. Coble!gh,
from this field
NEW YORK
221 Fourth Avenue • ORegon 7-3000
Other Talcott Offices Serving:
.
f
,
Chicago • Detroit • Boston * Atlanta • Los Angeles
Number 5952
Volume 191
.
.
The Commercial and
Financial Chronicle
.
(2153)
periods of declining as
including
stock prices,
JhP closed-enders have consistntlv provided better investment
results than have the better open¬
ed funds—in the way of greater
ordinary income production, leadin*
to better market-price
be¬
havior "Performance" that stems
from earning power, rather than
hat dependent on
capital gains
from market action, is relatively
predictable.
Other non-market performance
criteria
suggested by Messrs.
Doane and Hills include the type
of organization, <the sizet of (the
Fund investment policy, diversi¬
fication policies, marketability of
portfolio securities, and manage¬
ment compensation. Along with
these factors, past
capital-value
,/p11
advancing
as
performance over the very longterm, might well be included., ,
responsibilities.
certain
Leading Fund
and
with great interest
column of April 28, dealing
your
with
comparative
the
by the
companies.
manage¬
figures
as
should
them
presented
you
be
very
interesting to your many readers.
Certainly it is the first time that
comparative statistics of this kind
presented in the public
have been
As
as I
of the
far
press, as
de¬
are
Fund's
maintained. To
these
management
this,
agement
endeavor
job of
performance,
operate
success
are
company executives
do the best
possible
under
to
relations
know.
"old
between
Mutual
a
hand, and
one
other.
A
Mutual
different
I
its
quite
cor¬
that
say
between
and
is
on
the
on
ordinary
would
relationship
Fund
Fund
the
from
poration.
Fund
a
the
Mutual
a
sponsor-manager
of
Alan
in
name
sponsor
some
in¬
A Mutual Fund does not
organ¬
ize itself, nor does it
just sprout
from the ground. It does not raise
its own capital. A shareholder in
Mutual
a
r
Fund,
in
is the client
sense,
ment counsellor.
his shares
at
of
He
any
practical
a
invest¬
an
can
time
liquidate
he
is
not
the
that manager.
in
an
This he cannot do
Indispensable
First,
Fund
a
sponsor.
is
Secondly,
primarily
a
sponsor
is
willing
President; El¬
liot Black, of
Abbott, Proc¬
final
ter
&
Secretary;
dividuals
purchases
Early
changes
Paine,
least
six
junior
analysts,
a
Fund in
.me
continued growth of
the expectation that
management fees will be received
year j
afte^year.
oesn t
grow
isappear
e
"
may
A
Fund that
find its assets
through liquidations
to
point that it either
eventually
,s
UP
being
"an
lihaps as
nothing
corporate shell.
orphan,"
but
a
or
mere
and
society
pro¬
will
Mr.
forums,
Shaw,
accomplished
lectures and a
prior
to
Street Journal's promotional
department. He attended Susque¬
hanna University where he was a
of Theta Chi Fraternity.
registered representative and a
member of the Association of Cus¬
tomers'
Brokers, he resides at 884
Outing
outing
Association
hold
their
Business
latest
of
annual
June
will be
golf, tennis, and swimming.
If
sufficient members wish to partic¬
ipate in a trap shoot the club
range
will
be
made available;
shareholders of the Brothers,
as a Fund
contact
Chairman;
m
definuL
consnio0^ m P
birerin
is
-iob^t -the
a n y
exeCi]HrS' who
executives of
are
the
doing
a
affiliated
usually the
management
$3
fee
courts,
per
E.
those
week
is
United
the
to
stand
at
ob¬
week in
same
pal
centers
money
ending May 14
Week Ended
for
was
1960
York—
Philadelphia
the
• bar
low-alloy
of
melted,
steels.
reductions also
made
in
primarily in the
industry, for missiles.
petitive
domestic
vacuum
is
—
6.0
—
0.7
Weakness in Prices for
Certain Steel Products
de¬
and
according
"The
to
Iron
Age."
The
steel
steel
on
is
volume
deterrent to higher prices for this
Cites
thinking
com¬
Low level of demand for carbon
steel products acts as an effective
0.1
—
751,809
A
gained.
%
+10.0
1,200,000
are
aerospace
market
greater
as
experience
,
1S59
wishful
vacuum
products. These materials
veloping
746,545
Even
13%
a
prices
used
week
1,128,000
Boston
been
been
base
But comparable
have
com¬
$13,443,040 $12,219,312
1,298,539
1,300;292
Chicago-,.—
high-strength,
follows:
as
has
the
forging billets for
the princi¬
000 Omitted
,
May 14—
New
1959. Our
summary for
these
in
$25,894,- melted, low-alloy sheet, wire and
788,352 against $24,929,639,714 for
parative
of
reduction
correspond¬
Our
pre¬
year.
liminary totals
the
nificant
States
possible
for
last
Kuhn,
Loeb & Co., is general chairman.
Jr.,
The magazine points to
flurry
a
lower
volume
of
in
past
orders
the
incoming
month
June, July and part of August
of steel price cuts in recent weeks
evidence
as
of
are
the
collapse of
pressures supporting demands for
higher prices in the near future.
of
normally
steel—except
slow
in
months
the
midst
boom condition. And that is
in
of
a
some¬
thing that is not in the picture at
However, there is no evidence this time, the metalworking pub¬
a
lication notes.
softening in major mill prices
for
regular steel
price
weaknesses
But
they
do
products.
The
However,
selective.
are
looks
bring -owt^into *4he
open,
market
have
prevailed
r
year.
rose
es¬
of
in
reported
the
the
of
Office
Commission
increases
Heavy
bars
conditions
for
time
for
a
the
steel
industry
relatively
strong
seasonal
.pickup beginning early
Septe^periV Part of the ex¬
pected"; improvement will come
which
some
call
in
than
in
in
the
annual
1960
from
1959
To combat
the
price
strike.
the
by
expansion
This
in
Federal
to
serving
being
service
requirements in
hurry.
.
:
In the last six
have
a
weeks, consumers
exercising unexpected
been
the
Continued
on
page
45
M
Comparative Analysis-Better Than Ever
new
Latest
cf
demand
effect
ditures
Federal
con¬
Many
Blue
surplus
declining
revenues.
receipts rose
rates,
dividual
panded
of
reinforced
was
in
life
with
by
the
expen¬
of
investors
do
not
years
and
and
covers
growth
Life. Companies.
percentage
65
Institutions.
know
the
remarkable
record
of
the
an
65
increase in
in¬
FOR YOUR
ex¬
You
international
COPY, NOW ON THE PRESS, SEND $2 WITH COUPON
will
also
receive
and
Small
FREE
a
similar Analysis covering
Companies together- with our
"Buy" recommendations of 2 Large and 2 Small Companies.
25
New
,
Life
pay¬
covering unilateral trans¬
fers
and
well
as
capital
GNP
movements
goods
and
Ralph B. Leonard & Sons, Inc.
as
services,
Specialists in Bank and Insurance Stocks
though helped by the export gain,
remained
adverse.
25 Broad St., New York 4, N. Y.
I
3.9% Above Last Year
Bank
an
clearings this
increase
ago.
week
compared
Preliminary
Tel.:
CHRON 5-19
M
DIgby 4-7485
.
,
Clearings for May 14 Week
year
1959 earnings
3
Investors
1958,
business improved.
of
substantial
.last
over
Copyrighted comparative Performance Analysis shows 20 year progress
Life Companies with comparative earnings for 1955,
1956, 1957,
1959, book values
for 1958 and
1959, plus
current
price-times
earnings ratio, also actual as well as adjusted earnings.
ad¬
an
corporate and
income
tax
yields
balance
force
Individual
life insurance industry and that even the
big profit-making
Chips like duPcnt and General Electric have been far surpassed by
insurance stocks in the last 10 years.
Fresh opportunities are in
making.
U. S. exports firmed. The over¬
ments,
in
for
Our
Social security
and
as
up-to-date Report including
insurance
Invaluable
achieved in the first quarter,
the
show
reports of
and
tax-sheltered
substantial
Bank
are
mill
meet
can
month,
mills
analysis we believe is the most complete comparativS'analysis
ever
published. • It contains 2 columns new to our
Analyses:
1—Equity Value.
2—The premium ever book value
$1000 insurance in force as reflected in present market price.
per
and
state
ease.
all
centers
a
next
that
ofj Life .Companies
for construction and
payrolls.
tax
convinced
ton. As yet, the
has
not
moved
a
more
They will continue to cut back
inventories
a
there
But
cut
New
strike-depleted
tinued
vance
the
lead¬
a
up
Annual
local outlays
as
of
chewing
they
are
receiving,
"Steel," the metalworking weekly,
reported today.
through
imports,
weakness
dis¬
Government purchases were up
was
tons
pass
are
than
65 LIFE INSURANCE STOCKS
GNP.
stocks.
A
Users
steel
The
manufacturers and
rebuilt
this
more
HOW TO FIND BEST BUYS IN
fourth quarter
over
$7 billion of
(at annual rate) in
as
the
product by $8.50
Accumulation centered in durable
goods,
25,000
took
ing, steel maker in the South cut
its
regular mill price for this
the
for
accounted
which
East Coast ports in February.
comparable to that of last
to
in
accumulated
were
pace
the rise
a
of
opening quarter of 1960 at
from
Users Chewing Up More Steel
Than They are Receiving
ports have
total.
the
prior
reinforcing
especially true of the
market
50%
north.
14%
of
weakness
reinforcing bars to
price
rise of
to
This is
area.
Florida
remainder of the year. The survey
a
imports
Atlantic Coast
at
contributed
plant
and equipment investment for the
for use of the
be mailed to him.
Boesel,
open¬
manufacturers.
by
Exchange
person
should
Richard
auto
investment
goods
continued
with
,
Featured during the day
should
Be¬
in
Business Economics and Securities
the Association,.
interested
the
plans
tributors
,
fourth.
during the
of
survey
13 at the Sleepy
Country Club,
Scarborough-on-Hudson, New York,
according to an announcement by
James F. Burns, ,111, President of
on
the
fixed
durable
step-up
Hollow
those
other words>
ing
high, but declined from
quarter
spring
Francis
Whitaker, Lazard Freres & Co.;
hnia
he exPenses for each share- Robert W.
Trone, Merrill Lynch,
and
£2* reduced, the breadth
Pierce,
Fenner
&
Smith,
Inc.;
orpmv
i?er of the management Henry Harris, R. W. Pressprich &
ter
10n is increased, and betCo.; and Bliss McCrum, Dominick
avaimi?inagement is thus made and Dominick. There is a greens
Whule at lower costfee of $6.
•*
tors r!le
independent DirecThomas A. Turley, Harris, Up¬
3
u 1 .u a.1 F u n d have
ham & Co., is head of the Tennis
dog?" + resP°nsibilities as "watch¬
men!
assure that a manage- Committee. Reservations, with the
eim*;
in
billion,
the
gain
being
pecially marked in the case
a
will
expendi¬
$2
in
r.
t
the
it
specialty steel items, "The
Age" points out. Most sig¬
Iron
weekly clearings will be 3.9%
indicated
N. Y. Inv. Ass'n
Annual
retail
improvement
Business
becoming
associated with Harris, Upham &
Co. in 1958, was a member of The
Wall
ing
activities. 1
*u
i
some
ended
construction outlays
also
a Fund does grow, Peter P.
Wiley, Merrill Lynch,
sPonsor's efforts, this Pierce, Fenner & Smith.
tL
°,cc.urs at no expense to
Members of the Golf Committee
hpnorw
^self, but with great are Wright Rumbough, Hoppin
Fun
than
an
month to month
number of social
in¬
an
a
remained
through
shows
major
provide additional educational fa¬
twtu™' wben
prn
week
sales,
there
was
a
continued certain areas.
iUr;/ "
from automakers and their sup¬
growth in quarterly expenditures
In most cases the weakness in¬ pliers.
It will also come from
for
services.
Spending for food
volves
warehouse
had
shut
material, re¬ manufacturers who
also moved up, with the advance
inforcing bars for concrete con¬ down for vacations and may have
in
prices;
and
other
types
of
struction,
and
specialty
steel let their inventories drop a little
goods showed little change.
too far.
products, "The Iron Aige" notes,
Residential
assist members in becoming better
This
market
rate
quarter
months.
interchange of ideas and informa¬
Investment
;? mnintain
of
which
above
moderated.
on
seasonally adjusted an¬
of
$321 billion, were
billion
higher
in
the
first
nual
One of the objects of this group
is to provide opportunities for the
among
April
in
sides
tion
in
tures, at
analysts for
at
also
Personal consumption
$4
York
the necessary
dealer and
shareholder good will
tain
store merchandise.
21 years of age who
have functioned as junior
security
New
obtain the growth and,
cities
from
ad¬
lines,
notably in autos and department
over
dollars), to
develop
the
with
addition, several steel mills
have just announced price cuts for
from
country, in¬
Saturday, May 14, clearings from
quarter
income
information
crease
The
to
the
as
Personal
Bank, Vice-
(a), to spend the money
necessary,
(perhaps millions of
Id)
slowed
Inventories
a
for
competition
items.
moderately
after price increases has disappeared— will soon usher in seasonal de¬
for
the
foreseeable future, says clines of "more than
easing was associ¬
moderate"
"The
Iron
ated with the
Age,"
the
national nature
in
steel
leveling off of the
production
and
inventory spurt; the upswing in metalworking weekly.
shipments, the magazine predicts.
Fund grows
a
because
by
that
ware¬
only
January. This
Sponsor
created
to
than
telegraphic advices
softness in
some
vanced
in
The
More
investment, and other final
progressed.
Brookwold Ave., Baldwin, N. Y.
ordinary corporation.
dicate
quarter in the
In
group,
and
in
contributed
overall
activity
of
Chase
for
confidence
de¬
on
"Chronicle,"
tne chief cities of the
The rate of increase in economic
member
loses
the
rise.
based
the
third
warehouse
foreign
by
role.
A
ager, or if he
pipelines,
quarter
fixed
pleased with the results obtained
man¬
inventory
refilled
first
the
gain in output,
however, went into consumption,
for him
by the investment
heavy
as
cilities which will be
stances to the Fund.
from
where
basic
growth
and
cyclical factors played a dominant
acquainted with others in the
The
son.
"lends" its
production.
uses,
fession.
father and
of
of
increase
an
rebound
strike,
half
Hans
Reinisch,
rapid
quarter
from
compiled
all
continuing
fourth
real volume
pleted
the
R.
offi¬
The
the
accumulation
Others
of
a
the
steel
Society of Junior
Analysts has an¬
are:
cers
bil¬
,
advances
stemmed
::The
York
as
announced.
from
1959
in
selected to
serve
Prod¬
opening quarter of
Department of Com¬
S.
With price
rise
.
the
U.
merce
Junior Analysts
Formed in NYC
nt
National
moderate, most of the $17 billion
might almost be compared to that
even
in
Gross
annual rate of $500
,
May 10, 1960
e
the
an
1960,
and John Dry-
management company-sponsor
the
uct to
lion
x
the
carried
MORGAN
timers," or foos, of L. F.
Alan R. Shaw
deans, of this industry, I am very Rot hsc hi
Id,
interested in anything
that ap¬ Treasurer.
pears
about Funds since many
The newly formed organization
people do not really understand is open to
membership to all in¬
one
by
vigorous upswing in production
the
house prices for stainless steel in
the East and the Far West. It is
believed this material is affected
Commodity Price Index
man¬
A
for
There is
Business Failures
TRADE and INDUSTRY
and also to
election
out"
East.
I
President,. Wellington Manage¬
ment Co.,
Philadelphia, Pa.
the
Retail Trade
Food Price Index
Auto Production
highest prin¬
ciples of fiduciary standards.
New
The State of
■
the
WALTER L.
Southwest, the metalworking
magazine .reports. Imported rein¬
forcing bars are said to be "sold
Electric Output
Carloadings
IVCanhattan
statistical
The
results
Fund
achieved
ment
the
good will
assure
d
May:
I have read
Steel Production
b
.■»<*'
H»
Shaw, security analyst with Har¬
ris, Upham &
Co., as Presi-
Manager—On the Sponsor,
Director, and Shareholder
Dear Mr.
company
that
nounced
a
greater
^
voting their entire life effort to
building up tfce Fund, and to
being
Investment
IN OUR MAIL-BOX
even
This
follows
^executives
of
the
.the
management
The
From
have
company,
because
5
II
will
M
with
¥:•?
figures
Name
II
1-jLi.iL—'J?—"J
11
ill
(Please
r;
.
—
&*:
Print)
W
Address
$2 Enclosed
BaSnk DreTiy&
Com-
Com-
firm
been
and
yield
The very
issues at¬
tracted spirited bidding by dealers
in
all
investor
and
instances
terest followed the
tern
in-
should
This firm
market, it
carefully noted, con¬
be
tinues
its tenuous way
on
excep¬
some
fifty per cent of the
about
offerings.
«.
prevailing pat-
taking, with
in
tions,
with
an
unsteady gait.
The markets for Treasury
gations
with
form
Federal
the
up
obli¬
background
policy dex¬
Reserve
terously balancing market factors
which tend to become progressive¬
ly
complex.
more
market
in
than
;
♦
seemed
the
better
kets
had
the
improvement
.
interest
consequences
sold
issue
attractive
Pennsylvania
York
New
County,
an
Some
dealers
feel
that
stronger
develop
Federal interest in the
markets may naturally
as
heavier
borrowing
commitments
in
generate
bonds
uncertainty
to
with,
vestment
degree
a
the
not
•
largely motivated
work
in
want of
their
more
by
in¬
now
varying
About
for
situation
to
or
the
Paris
cal
was
of
the
tax-exempt
impelling than possible
.
,
repercussions
in
a
Summit collapse. New issues were
bid
for
seen
with
in
quoted
avidity
an
the
street,
issues,
after
of less than
•
mar¬
involved
seldom
and
dollar
quick
a
dip
point, regained their
previous levels.
The
a
Commercial
Chronicle's
flected
a
bond
yield
modest
Financial
and
index
market
our
prosperous
country
re¬
high
grade
& Company; White, Weld
Company; C. J. Devine & Com¬
pany and others. The offering was
&
scaled to
It
yield from 2.70% to 4%.
accorded
was
reception
enthusiastic
an
less
as
than
$1,200,000
remains in account at present. The
bidding for this issue
was
ably competitive. Five
interest
costs
as
gain for
represents
an
market im¬
of
abGut
a
quarter
point. The Smith, Barney & Com¬
pany
Turnpike
revenue
bond
provement
Elyth
&
Lehman
follows:
the
to
comes
investors
York
interested
Company
X—3.922
Halsey. Stuart & Company
First Boston Corporation
on
is
Pittsburgh,
Company.,
nounced
far
than
of
Maturity
Bid
normal
The
dealers
prefer
total
This
the
market
permitting
and
-*"**-*
Next week's
.
■.•v-v**-*;
__
*
issue
new
the
June 2
the
on
Worth
competitive cate-
gory, is $50,000,000
forma
factors
serial
California's
financial
tremendous
needs
are
that
but
ready
a
and
placement
Although fee bond market
con-
neTUVun:er1afettmLTc?pli;
likely to do relatively well.
Tax-exempt investors occasionally
of
they are aware
this, especially when an issue
3.45%
3.30%
3%
1978-1979
3.25%
3.10%
3%%
1974-1975
3.25%
3.10%
3i/s%
1978-1979
3.25%
3.10%
PETERSBURG, Fla.-Walter
A. Fullerton, Jr., has
opened of-
New York
well
,
3.55%
3.40%
3.75%
3.65%
3.50%
^^n^^ivrr evg?i8et'n
3.40%
3.25%
erly with A
3.50%
3.65%
and
3.70%
31/4%
1977
3.80%
3%
1980
3.90%
3.80%
3.43%
at
115
the
National
Humphrey C ompamj;!nt
3, GEORGIA
2:09
p.m.
1,000,000
1961-1990
2:00
p.m.
2,000,000
1961-1980
3:30
p.m.
,
—
from
Bank
Fort
1961-1979
Brown
Mo.
County
Joint
Union
*>300,000
1961-1980
8:00 p.m.
10,000,000
1962-1980
11.00 a.m.
2,000,000
—_____
James
of
own
2,902,000
2,379,000
1961-2000
1961-1980
10:00 a.m.
11:00 a.m.
1964-1990
11:09 a.m.
j
1961-1980
1961-1980
10:00 a.m.
10:00 a.m.
11:00 a.m.
\
________
2:30 p.m.
2:30 p.m.
«966
£$5
3,000,000
1,325,000
1961-1983
1964-1988
8:00 p.m.
2:00 p.m.
1964-1970
11:00 a.m.
®
15,000,000
Pennsylvania State University,
Pennsylvania
8,500,000
—
^
i„ni, q
11:00 a.m.
(Thursrlavl
No. 30, Louisiana
19S1-1980
10:00 a.m.
1,690,000
1961-1975
30,000,000
________
7:30 p.m.
1:00 p.m.
2,000,000
Michigan
25,000 000
Milwaukee, Wisconsin..
St. Paul, Minnesota
15
________
Robert
-
2,495,000
___
1.200,000
T
__
*
«
_
_
/mi
,
1961-1980
Noon
v
June 16 (Thursdav)
2,000,000
June 21 (Tuesday)
Norfolk, Virginia
9,000,000
Ohio
""
W.
T
*
—
1^1000 000
„
,
'
,
June 29 (Wednesday)
LouiS]ana State Univer., Louisiana
Tlliv
6,500,000
1962-1983
-
FHwa?ilri«t0cFher & Co'' and A' G-
11:00 a.m.
14
New
.
—
000,000
June 15 (Wednesday)
Com-
JAckson 1-0316
.
,
-mnnnnnn
Los Angeles Dept. of Water &
Power System, California
•
_
1961-1990
1981-1990
offices
has joined, the staff of
Heitner
&
Woods, Paul
Building, members of the
Edwards & Sons.
Noori
High
District, California
ue;Mav
-
r,
7:30 p.m.
5,870,000
Dist., New Jersey
Pierce, Florida
1:__
Kern
Kentucky
.
Yates, rieitner
LOUIS,
11:00 a.m.
v
(Wednesday)
Farmington, New Mexico
'
(Special to The Financial Chromicle)
ST.
1^63-1980
1,300,000
Honolulu, Hawan______
yatAC
;v'.'YV? '/
\nr,n
Struthers, Ohio
Yates,
ATLANTA
1961-1975
1,300,000
/rr
Dumont Sch.
Building. Mr. Guthrie was
formerly with Guthrie, Byrd &
Co., Muir Investment Co., and
Tiernan
.
a.m.
June 14 (Tuesday)
.
conducting his
business
_
June 8
-
merce
WitL
With
RHODES-HAVERTY BLDG.
'
ANTONIO, Texas
is
11:00
/
Indian^i:%^
^
Ife^fd^e? & Co^In/
James ^umrie Onen*
Guthrie upens
Guthrie
1961-1970- Noon
1961-1980
Commis-
Rauscher, Pierce & Co.
LOCAL STOCKS
a.m.
2:00p.m.
M00,000
3,375,000
Avenue,
james
investment
CORPORATE BONDS
1960-1989
1963-1987
11:00
a seclirities Calcasieu Parish School District
.
in
ft 0H i ns on
Eleventh
Goodbody & Co.,
SAN
STATE AND MUNICIPAL BONDS
•
-
E.
1894fr
Opens
ST.
3.90%
1979
ESTABLISHED
,,
1978-1980
1980
May 18, 1960 Index:
__
Walter rullerton
—
^nn/vl^ni06"61'31 ^ A"th"
School
1977-1980
31/4%
2,415,000
11,750,000
11:00 a.m.
1962-1990
June < (luesday)
Anchorage, Alaska
6,095,000
Anchorage Ind. Sch. Dist., Alaska
5,000,000
Dothan, Alabama
____________
1,500,000
Memphis, Tennessee
15,000,000
Memphis Bd. of Education, Tenn._
2,700,000
priced.
fices
3i/2%
City, N. Y
is
...
3y4%
1,558,000
Bosrd
Florida
seem
1978-1980
___
p.m.
(Thursday)
.1..—
T
3%
Cincinnati, Ohio
New Orleans, La
Chicago, 111
7:30
June 3 (Friday)
Development
sion,
bid will be forthcoming in an
on
the part of banks and
effect
Pnllppp
v,
Florida
3.40%
,1980
1963-1997
1,400,000
^,°on
bonds.
recurring,
and
marketability is thereby diminished to a degree despite the very
high grade nature of the credit. At
appear
Qfafp
Regents, Texas.....
Stamford, Connecticut
and
present it would
Tpyss
Gf
State of Cali-
(1962-1986)
to
Cook County Con. Comm. Sch. Dist.
No. 65, Illinois
<
Harlingen Consolidated Independ.ent School District, Texas______
King County, Washington.
Upper Arlington School Dist., Ohio
headliner, and larg-
est, scheduled
calendar in
other
3.75%
33/4%
a.m.
a.m.
8:00p.m.
3,500,000
Alabama
not
does
3.55%
31/2%
11:00
!%«««
June 1 (Wednesday)
calendar of twice
a
volume.
3.90%
_______
1963-1982
i
1980-1982
(N. Y., N. Y.)
p.m.
May 31 (Tuesday)
investors
and
1978-1980
Baltimore, Md
8:00
p.m.
is-
3%%
(State)
a.m.
(Wednesday)
this
for
scheduled
3Y2%
New Housing Auth.
Los Angeles, Calif
___
1
New
Vermont
>
10:30
12:30
10:00
:/2,(mOOO
Cattaraugus Co., New York—.—
a///::
/rr
an-
Connecticut
(State)
Jersey Highway Auth., Gtd.__
New York (State)
Pennsylvania (State)
a.m.
May 26 (Thursday)
be
show evidence that
Asked
p.m.
•
Huntsville, Alabama—____——
West Baton Rouge Parish School
approximately $389,157,District No. 3, Louisiana
Most
this
is
year.
total
would
to
daily but the schedule is
less
sues
continue
issues
widespread
SERIAL ISSUES
a.m.
10:00
7:30
$3,300,000.
Abnormally Low
New
-
Tuesday,
$6,500,000
Pennsylvania
(1961-
10:00
1962-1965
1962-1990
New Business Scheduled
3.93177
Smithers &
Also
3.9317
!!
1961-1985
1,970,000
fmrHcularly
balance
dealers
3.S26
F. S.
.
p.m.
2:00p.m.
,
Bunkie, Louisiana
Clarkstown, New York
Denver, Colorado.—
Grants Municipal School District
No. 3, New Mexico-----------
effort
3.925
Rate
(State)
bid
Brether3____„____
MARKET ON REPRESENTATIVE
California
rarelv
be
Present
one
May 18. This
average
remark¬
groups
Percent
weekly period. The average
yield was reduced from 3.45% on
on
issue
Nuveen
the
May 11 to 3.43%
was
7^7"
Atlanta, Georgia
S
county
government
of
seat
New
^ould
000.
which included Harriman
&
Company, Inc.; John
group
Ripley
ket
and
of
market
3.50%.w time
to
by the Blyth & Company
won
bond market have continued to be
'
area
This
Tuesday.
aspects
2.45%
third of the offering is
expanding
Conference. The favorable techni¬
more
its
as
9^25,000
10,000,000
1,500,000.
Ohio
or
M
represented in this week's under¬ include an issue of about $200,000,writing with the sale of $9,000,000; 000 Chesapeake Bay Bridge and
Phoenix,
Ariz.,
Water
System Tunnel Authority which
is
Revenue
(1961-1988)
bonds
on
planned for negotiation in June,
municipal bond dealers have paid
little
heed to the general
bond
market
from
southwest
Strong
However, during recent sessions
•
Halsey, Stuart & Com¬
one
The
*
group
reported sold at this writing.
genuine symptoms.
Municipal Market
;
a
high quality offering is now being
offered
to
investors
at
yields
guess
transactions
to
Lehman Brothers; Eastman
Dillon, Union Securities & Com¬
pany;
Blair
&
Company, Inc.;
Phelps, Fenn & Company, and
other
large
underwriters.
This
quality of the securities
involved. Dealers and traders
seem
awarded
pany;
con¬
traditional
were
headed by
the
months ahead. Currently, at least,
the
government markets reflect
sistent
--------
WTauwatosa, Wisconsin
ihem'T^Jom
This
3 50%
to
^Syracuse)
a
"
Treasury
reoffered'
some
respects
and we will
briefly outline them. On Tuesday," 2 35%
$9,515,000 Cincinnati, Ohio (1961- well
1990) limited and unlimited tax-
in
for the entire finan¬
7:30
*362-2000
2,000,000
Three Rivers Local Sch. Dist.,
on
Although only few, and of rela-* Wednesday. The Morgan Guaranty
v
light
volume,
the
past Trust Company was awarded the
week's new issues are noteworthy
community.
-MM'WO
_______
tively
temporarily at least, by the
Summit collapse and its possible
set,
(iuesuay;
Springfield Twp. Sch. Dist. Auth.,
,v
m
Portland, Oregon
Onondaga
This better condition has been up¬
1*1 ay
•
3:00 p.m.
8:oUp.m,
1861-1991
/TWcdflv)
,M
this writing
investment
is $4,800,000.
also
"
• :
balance at
Combined
market.
Recent Financing
•; v
value alone.
thin
this.
•
•
:
-
,
its scarcity
on
currently
bond
- •
•
Buckhannon, West Virginia.-.—
California.
—Detroit, Michigan,—_——•—Detroit School District, Mich._____
Gary School City, Indiana
Grossmont Union High Sch. Dist.,
•
cial
:
1960-1988
1962-1985
'
California
—1»400,000^1..62-1980
Lynchburg, Virginia
2,800,000 1961-1980
Madison, Wisconsin _______
—
3,000,000 1961-1980
Middletown Sch. Dist., New Jersey
3,750,000
1962-1982
considerable
attract
! I
v
.
1961-1970 and priced
could
be
handled
despite
the generally
mar¬
reflected
greater volume of
a
tax-exempts
the
and bond
largely
that
dealers
following
and
by the
heavier
two back,
indicated
but little
as
^
ordered
refinancing,
various bill, note,
issue maturing
the bonds to
4iBlue List" is
yield from 2.30% to 2.95%. The
than it was a w7eek or
University of Maine issue maturlending tangible evidence that the
investor
demand
continues
to ing 1963-2000 was won by the
Chase Manhattan Bank group and
easily absorb the moderate supply
offered
to
yield from 2.60% to
of new and secondary
offerings
3.50% excepting the final maturity
as they come to market. With the
sensible spacing of sizable new is¬ (2000) which was not reoffered.
This high grade offering should
sues
offerings, it is apparent to
float
street
Treasury
months
recent
recent
The
.
.
*
*
^.50%
immediate
during the week past.
light schedule of new
of
sale dates have been set.
information, where available, includes name of borrower
amount of issue, maturity scale, and hour at which
s
$1,000,000 or more for which specific
yield from
to
index does not cover the
3.50%. Sales are reported off to wm he opened.
•
period but its last re¬
a slow start, wife the current balcording May 12 was 3.94% against
May 19 (Thursday)
ance at about $4,000 000
3.99%
the week previous.- This
Rennselaer County, New York.—
2,028,500
On
Wednesday,
the State of
difference represents an average
N
Baltimore, Michigan...
1,290,000
,,
j
market gain of about one point. Maine awarded bond issues total' '
'
V
May 23 (Monday)
To
round
out
the
municipal ing $7,250,000. A group headed by
2,500,000
market's
technical
aspects,
the the Bankers Trust Company won Richardson Ind. Sch. Dist., Texas.
bond
quiet
municipal
and
has
Uaty prices'to
list the bond issues
tabulations we
following
the
and Smith, Barney &
pany
state
Corporation
Boston
First
by
Manahttan
•
Thursday, May 19, 1960
.
Scheduled For Sale
Larger Issues
led
DONALD D. MACKEY
BY
market
. .
(2154)
TAX-EXEMPT BOND MARKET
The
Chronicle
Commercial and Financial
The
6
10:00 a.m
J"iy 19 (Tuesday)
Eugene,
Oregon
25,000,000
•__*
——
Number 5952
191
Volume
.
.
The Commercial and Financial
Chronicle
.
trast to all other
Oil and Gas Securities
plans
that have transpired, plans for greater profits U. S.
oil
1959
1960
in
to
to $5.1
billion in
$5.0
the
future,
inct
+i
*1..
lic had
in
than
oil
yielded
other in¬
dustry — but
thi
the
slipped to
place
behind utility
and chemical
stocks. The
when
it
he
has
Co.
said,
of
S,
nies.
essential
been
re¬
for
a
re-
outside
ithe
their
mwm
undergone during
approx
can
Gilb ert H. LaPiere
value
companies have had to go
the industry for 15% of
total
be
expenditures,
expected
that
and
it
pro]ects
will
it
be
to
produce
profits."
.
East
and
predominate
World's
oil,
have
of
sources
which
of
and
$30 to
billion
$46
A
look
at
the
over
price, dropping from 20%
of the
total
stocks
value
the
on
of
all
New
mand.
Exchange to today's figure of ap¬
proximately 15% of total value.
An
investor
should
be
not
tne
between
supply and destudy indicates that
petroleum industry,' in con-
margin
Stock
the
mc
iwiiuw
narrow
The
next
five
the
same
over
increase
500,000
B/D)
East
are
their
rates
supply
the
luc
the
only
at
next
In the
a
the
Today, the U. S.
than
more
Free ^Vorld
demand but
s
Middle
mately
resents
with
East
70%
less
of
than
1%
of
the
The
j.hc
oil
of
of natural
cost,
with
will
supply
con-
pansion
accelerated
particularly
approximately 4.5 bil¬
years,
lion bbls
of
ft of gas
oil
of
demand
the
gas
of
extent
not
is
be
can
placement
exact
gain
East
as
credited
of
this
10
±v
Lack
of
barely begun.
sufficient
-
:
18%
of
rate had
it
for
al
is expected to be completed
of
this
year,
a
fact
the
worry
but
now,
Russia
_
become
Sahara region by a year from this
'Spring.
important
an
Rus-
.
°
.
aPPr°Xlmately
•revenues,
'it
because
possible that" Russia ma'y'300,000 B/D)..of
replace Venezuela as the world's, crude
imports
is
second
-
ranking ^crude-producing
countrv
country
this
mis
The
vear
year,
ine
Soviet
2.8 million B/D for 1960. This
the French
goal/
80%
energy used
to
the
1943
;
:
Continued
67%
of
United
in
,000,000 61/2% Sinking Fund Debentures, due
the
of
natural
the
states
will
energy used
in
-
.;
the
next
4
the United
to
decade.
/
and
75%
,000 Shares Common Stock
year 1967 and that
in demand in the U. S.
approximate
over
supply
by the
tne growth
will
gas
1,
With Common Stock Purchase Warrants
States.
A consensus
of various petro¬
leum economists
indicates that oil
and
offer to buy these securities.
Uris
-
(Par Value 10P Per Share)
5% ./year
It
is
esti-
njated that demand
will approach
-+U1
B/D by 1967 compared
r m
aPPr°ximately 9.5 million
tv/~ today; it is further estimated
Offered
jnat the Free World
iion will
May 1, 1975, and (b) two shares of Common Stock. The Warrants will be detachable and ex¬
i
increase
oil
at
consump-
an
average
ercisable
S;e °f
approximately 7 to
p/o/year, nearing 30 million B/D
L67
compared
mately 17 million
with
■
to
purchase four shares of Common Stock at a price of $12.50 per share through
commencing August 16, 1960. The Debentures and Common Stock will not be sep¬
arately transferable prior to August 16, 1960, or
approxi¬
B /D todav.
only in Units, each consisting of (a) $100 principal amount of Debentures with an attached
Warrant
with the consent of the
such earlier date
as
the Corporation
undersigned.
may
elect
.
<;
cT?0rftog to the Chase Manhat¬
tan
n^' capital outlay to meet
WnHe,iXpans*on needs of the Free
tan
OFFERING PRICE-$115 PER UNIT
Petr°toum
requirements
Vun uilf. next decade will reach
thP c-i u?,n: Ttos is almost double
Plaht^
iUon ?pent for Pr°Perty,
mm
a
(and accrued interest)
n
nae*
^ equipment
in
during the
Copies of the Prospectus may be obtained in any State only from such of the several under¬
and others as may lawfully offer these securities in such State.
/?ears- The majority of fu-
■turn
0l,ilays will be spent
50uutries because the
ejp
enct
sen*
f.1,ndirig oil in
in for-
writers named in the Prospectus
rise in
the U- S- is
ahmn1!8.
major oil companies
in search for new oil. Forovpr e*uPe4ndltures
will, rise 140%
whilp Y
of tlie Past 10 years
eifxn
rise
7o^°mestic exPenditures \will
0vcr the
past
12
years,
capital
Kuhn, Loeb & Co.
>
May 19, I960
(or
.
from
the
Government is to take
this
40%, and
reached
in
'-less
comes
of the Sahara output for
O f"
an
90%
soviet tne jjrencn government is to xaKe
Union predicts production of over
solicitation of
some
the present French
Middle East. The present plan of
energies
countrv. By
climbed
had
total
by the
end
200,000 Units
1920 oil and.
slichtly
out¬
150,000 B/D by 1961. An addition¬
pipeline to the Mediterranean
•
NEW ISSUE
The
market
French Government is rapidly ap¬
proaching the solution. They have
recently completed a pipeline to
offering is made only by the Prospectus.
dis¬
trillion
lets for Sahara crude and gas will
be a problem for a
while, but the
displacement
known, but in
used in this
to
fuels..
10V2
yet, but exploration of the
Sahara has
petroleum
other
accounted
than
19o6
in
or a
and
have been found. This
,
by the invention of the automobile
early part of the century.
in the
Much
offer to sell
some
Europe
Sahara oil production will eventually have far-reaching effects on
approxi--the world oil industry, especially
mately 2,580,000 B/D, compared to ,on Middle East
production and
-
an
area
Western
a
the oil
The
is
major portion of its petroleum requirements. Over the past
future, Russian interven¬
eventually
utuuaujr
This advertisement is not
with
are now being dis¬
developed. Many en¬
too
industry has undergone a
period of tremendous expansion
during its first 100 years, an ex¬
eventu-
gas
gineers believe that this
day
These
factor in the export market.
sian
oil
production is
rep-
alarmed at these statistics because
will
reckoned
Afrira
Africa. Tn thp French Sa¬
In the Fronrh Ra
"
region, oil and vast amounts
covered and
the
rjse fr0m the present 362,000 B/D
to a point where the Soviet will
has
industry's oversupply
b
did not just happen—it has been
building up over a period of 10
years. A few years after World
vjii
that
area
to be
which
has .prompts France to predict that
more oil than it
needs; its exports over 300,000 BOPD will be flow¬
q£ crude oil should be expected to
ing to the Mediterranean from the
any
approxi-
reserves
as
becomes
they have more •the Mediterranean Sea which
will
their reserves be
carrying over 100,000 B/D and
by comparison to is
expected to increase to over
..
the
hara
tion in the world petroleum mar¬
ket will be felt. It is not causing
ac—
one-half
change
production
developed
lower
^
areas.
counts for
of
can
the U. S.
ap-
billion
6.1
Another
pro-
plish
rapidly
a
situation
does not compare with the Middle
be expected to accomthis ,because of the anticipated increases in Free World deareas
to
Soviet
a
cu
„cai
markets.
expected
be
This
on
North
North
which
bulk
guarantee
supply
over
current
uvci
over
lc,tco
to
1959
B/D
(with
areas
not
basis.
ally, have
B/p),
(with 2.5 million
world's future oil
bbls/year. Reserves are unevenly
distributed in relation to the con-
suming
con-
will
continuous
more
few
double
years
Russia
may
rate of just
a
oil
Middle
duction
.study prepared by
idiving further steps tu
taking iuiuici atcps to
common
York
a
the
could
sumption. Middle East reserves
McGraw-Hill
Publishing Co. of could actually supply the world's
same
period. Over the past 2Vz the
capital expenditures planned demand for the next 10 years, asyears, oils were one of the major
throughout the petroleum indus- suming proper facilities and politgroups showing a decline in their
tty indicates that the industry is i°al stability.
market
from
demand
the
over
new
(with
million
4
the. Free
currently
the
man-
requirements of
the industry's future expansion.
and if
Venezuela
become
ner
the
World
the
over
available,
men
mand and because
proximates 260 billion bbls with
demand
Free
Canada
decade, the Middle
Venezuela
that
firm,
'
•
Over the last
percentage of capital in this
billion, and chemical stocks moved
is
supply
excess
j^sor^e<^ ky
on
they
meet
this
in demand.
only 15% of the reserves, whereas
to
Some industry
that
yearly
years
immediate
-
May,
.
6%
However, because of the in-
necessary to raise an even greater
had over 21/2- years ago in
1957.
In
contrast,
utility
stocks
moved from
$33
to
$50
ratio
gain
One of the advantages existing
today for other export nations is
scheduled
believe
major
greater,part of their spending
.
,
financial needs through
internally
generated cash. Since 1954, the do-
$43
U.
Free
stands
capacity is approximately 6 milBon b/D, of which one-half exists
portion of capital expenditures on
projects designed to assure the
long-term growth of thelcompa-
of the
in-
mestic
the
to
11.6%
an
7
output,
Today the Free World's shut-in
New
"Until
companies to concentrate
new
cent years, domestic oil
companies
have not been able to meet their
ap¬
mately
of the
dustry has
billion,
same
oil
source
expansion which the domestic
of oil common
proaches
Jersey
oil in the U. S. and the accelerated
value
stocks
U.
while
tinues to increase at
rapidly increasing cost of finding and developing
third
current
i
it
Because
have
the
S.
66:1,
12i/2:l.
In the U. S
will
of
at
wis d,ustri®/ ?lready establish e d
Middle East with strength for the long-term pull,
m0ney sp
w
ey. W
1be, concentrating a
•
,
oil
today,
15%
ratio
now
V£eSM-L?UCtl °,il
>
any
shares
only
The
increased
World outside the U. S.
if total
bone of Standard Oil
have consumed
development cost, but this
has
has
streamlining over-all operations,
This "' outlook
was
recently refleeted in a speech by Mr. Rath-
75% of the Free World's total
u
Until recently, the pub¬
invested more money in
then
40:1.
over
will
.companies
since
is
•
on
cently
investors.
and
make markets more profitable and
expenditures to find and develop
^
War II, the reserves-production
ratio, of the Free World was 20:1
modernizing refin- could be reduced by 3 to 3.5 miling processes, expanding petro- lion B/D (which would be a more
chemical facilities, endeavoring to desirable level
for the industry)
far bdt its future intervention is forebodingly depicted.
2j-Lin the
cuts
_
In
concentrate
expanding petrochemicals, etc., rather than in drilling and
production. Russia is not considered an important factor in the world
1957, oil shares have
their rank of leadership with
The
abundant, supply situaaon.
process,
Mav 1
in
1961.
TVn I, \ng ?? production,
Wt
^ fleets the industry s
com¬
producers, Mr. LaPiera foresees series of consolidations between inde¬
pendents and the larger integrated companies, a sharp curtailment in
niw refining construction, and an emphasis in modernizing refining
cinre
ex-
$5.2
billion
major portion of these
panies are making, and reviews the domestic and international oil
and gas picture, He predicts international oils should fare batter than
domestic companies, and expects domestic producers should show
bitter earnings in 1960 than in 1953. As for the fukira of domestic
Recent Trends in Oil
total industry
approximately
of
billion
of the oil bear market since May, 1957,. cs3 analyst declares
investors should not be too alannad. He explains strengths and weak¬
oil market so
estimated
an
Aware
nesses
a
penditure
W, E. Button & Co., New York
City
major industries,
reduction in capital spendin future' years, going from
ing
H. LaPiere,* Manager, Oil & Gas Department
By Gilbert
(2155)
on
page
its
26
8
MENTIONED
THE FIRMS
,
Thursday,, May 19, 1960
Clary
Corporation.
Analysis —
Miller Manufacturing
Company—
Hayden, Stone & Co., 25 Broad
Report — Robert Edelstein Co
Street, New York 4, N. Y.
Inc., 15 William Street, New York
Fruehauf
Trailer — Report — Ira
American Cyanamid Company —
5, N. Y.
Haupt & Co., Ill Broadway, New
Report — Shearson, Hammill &
Northrop Corporation
York 6, N. Y.
Analysis
Co., 14 Wall Street, New York 5,
—Woodcock,
Moyer,
Fricke
&
Corporation
Ferro
Review —
James Richardson
& Sons, Inc.,
14 Wall Street, New York 5, N. Y.
BE PLEASED
WILL
New York.
Companies.
Holding
Aluminium Limited
AND RECOMMENDATIONS
THAT
..
5, N. Y.
and Bank
INVESTMENT LITERATURE
UNDERSTOOD
Chronicle
Mersick Industries,
Electronics Funding Corporation
Inc.—-Analysis
Also available are
—Bulletin—Darius
Incorporated, —Cooley & Company, 100 Pearl
reports on Warren Brothers Com¬
Street, Hartford 4, Conn.
90
Broad
Also
Street, New York 4,
pany, Convertible Preferred Stocks
available is a review of
York
DEALER-BROKER
IT IS
Commercial and Financial
The
(2156)
—
—
—
TO
INTERESTED
SEND
PARTIES
THE FOLLOWING
LITERATURE:
N.
Also available are data on
Y.
& Gas,
Allied Radio
Electric
Service
Public
Barden Corporation,
Bank Stocks— Bulletin
body
&
Co., 2
N. Y.
York 4,
Good-
—
Broadway,
New
Stocks—Quarterly compari¬
son
of leading banks and trust
companies of the United States —
New York Hanseatic Corporation,
120 Broadway, New York 5, N. Y.
View—Monthly Invest¬
ment Letter—Burnham and Com¬
15 Broad Street, New York
5, N. Y. Also available in current
pany,
Foreign Letter.
Canadian
Business
Saunders
Cameron
Yonge
Review
—
—
Limited, 55
Toronto 1, Ont.,
Street,
Canada.
Convertible
securities
Debentures
which
List of
—
interest¬
appear
ing-Paine, Webber, Jackson &
Curtis, 25 Broad Street, New York
Also available
4, N. Y.
on
Atchison, Topeka &
Brooklyn Union
data
are
Santa Fe,
Plan
Gas, Lease
International, Ryder Systems, Diebold
comments
and
Zinc
the
on
Power Co. Ltd.
digest
—
Monthly
economic
and
review —
Ltd., 61
Co.,
Market—Review
have
—Hemphill,
Broad
Noyes
Co.,
&
15
Street, New York 5, N. Y.
Also available
are
data
Cessna
on
Aircraft, Colgate Palmolive, Eagle
Picher,
Ash
Jarrell
Company,
.
Mead Johnson, Swift & Company,
Universal Match and Vendo Com¬
pany.
Integration
European
dian
Trade
Nova
—
Cana¬
and
Review
—
Bank
of
Scotia, Toronto,
Infrared:
Light
the
Ont, Can.
Eye Cannot
See—Article in the May issue of
the "American Investor"—Ameri¬
Stock
Exchange Investor, 86
Trinity Place, New York 6, N. Y.,
price 15 cents per copy; $1.00 per
year.
Also in the same issue are
articles on Opelika Manufactur¬
ing Corp., Walter Kidde & Com¬
can
pany,
Stahl Meyer, Inc. and Metal
& Thermit Corporation.
Japanese Imports
outlook
—
Review and
April issue of "In¬
vestor's Digest" — Yamaichi Se¬
curities Co. of New York, Inc.,
Ill Broadway, New York 6, N. Y.
In the same issue are analyses of
the Heavy Duty Electric Equip¬
of
ton, Colket & Company, 70
Street, New York 5, N. Y. •
son
an
in
used
the
Chemical
Ltd.,
,>y
Report—Walston & Co., Inc., 74
Wall Street, New York 5, N. Y.
Sumitomo
Industry Co., Kawasaki
Report—Droulia & Co., 25 Broad
Street, New York 4, N. Y. Also
available is a suggested portfolio
available
is
counter
the
and
industrial
over-the-
35
used in
stocks
Current
International Telephone
Telegraph Company.
;
and
.
&
.
—
Gould National
Automation
Office
the
in
—
Dis¬
cussion of office equipment
stocks
—Hemphill,
Noyes
&
Co.,
15
Eroad
St., New York 5, N. Y.
Also available is an analysis of
Counselors
Richards
Hill
—
Analysis
Corporation
—Report—Straus, Blosser & Mc¬
Dowell, 39 South La Salle Street,
Chicago 3, 111.
Great Lakes Paper Company Ltd.
—Analysis—McLeod, Young, Weir
&
Company
Limited,
50
King
Systems.
Craig
Beauty
Great Lakes Bowling
—
&
Co., 621 South
Spring Street, Los Angeles 14,
Calif. Also available is an analy¬
sis of Standard Register Company.
Street,
Aircraft
Corporation
Ont., Can.
Toronto,
West,
Grumman
Engineering
Also available
Steel
can
data
are
Ameri¬
on
Foundries,
National
Dairy and Dresser.
Pine
Mines
Point
Ltd.—Analysis
—Doherty Roadhouse & Co., 335
Bay Street, Toronto, Ont., Canada.
Radio
Corporation
Review—Courts
of
America-
&
Co., 11 Mari¬
Street, N. W., Atlanta, 1, Ga.
&
—
etta
Report
McKinnon,
—
—
4,
Rico.
N.
Raw
Sugar
1960
in
Prices—1931
form
of
to
May
chart—Lamborn
&
Company, 99 Wall Street, New
York 5, N. Y.
\
Publish¬
if
%
«
analy¬
Qompany.
Cincinnati Gas & Electric—Memo¬
randum—R.
48
W.
Pressprich & Co.,
Wall Street, New York 5, N. Y.
on
Filer—Crown
Dept. A-7, 419 Park Avenue,
South, New York 16, N. Y.—$3.00
(ten day free examination).
an
sis of Bestwall Gypsum
—Herbert
ers,
Also available is
Y.
Also
available
Ocean
is
memorandum
a
Drilling & Exploration
Co.
City National Bank & Trust Co.—
Card
memorandum—Swift, Henke
Co., 135 South La Salle Street,
Chicago 3, 111.
&
Alsco Inc.
—
Bulletin
Conklin
—
available
is
a
De Witt
Inc., 120
5, N. Y.
bulletin
on
United Greenfield Corporation.
Aluminium Ltd.—Bulletin—Reyn¬
olds & Co., 120 Broadway, New
For financial institutions only—
„
Also available are reviews of Na¬
tional
Aeronautical
Corporation
of stocks.
memorandum
a
Culligan,
Inc.
Analysis — Cruttenden, Podesta & Co., 209 South
La
Salle
Street, Chicago 4, 111.
Also
on
—
available
is
memorandum
a
Drackett Co.
Trading Favorites—
Diversja, Inc.—Report—John (R.)
Dura*
Corporation—Analysis—H.
Hentz & Co., 72 Wall Street, New
York 5, N. Y. Also available is a
report
on
j
Haveg Industries—Analysis—Blair
Co.
&
Incorporated,
20
Street, New York 5, N. Y.
Botany Industries, Inc.
Broad
Signode
South
Strapping—Data—
Steel
Freehling,
La
Illinois.
Meyerhoff & Co., 120
Salle Street, Chicago 3,
.
International Minerals & Chemical
—
Memorandum
Pont
Francis
—
I.
du
&
Co., 1 Wall Street, New
York 5, N. Y. Also available are
memoranda on Raytheon Co. and
Rockwell Standard.
Kern
County
Land
Company
Co.,
Re¬
65
N.
Y.
Singer Manufacturing Co.
view
Fahnestock
—
Broadway,
Also
in
New
the
&
York
—
6,
is
circular
same
a
review of General Motors Corp.
United
—
Analysis—Evans MacCormack &
Co., 453 South Spring Street, Los
Angeles 13, Calif.
Air Lines
Park
U.
S.
—
Memorandum
Incorporated. 300
Avenue, New York 22, N. Y.
—Evans
Co.
&
Rubber
—
,
Memorandum
—
Winslow, Cohu & Stetson, Incor¬
Co.—Report—
A. M. Kidder & Co., Inc., 1 Wall porated, 26 Broadway, New York
4, N. Y.
-v."
Street, New York
Mead
Johnson
&
5,
available
Lewis, Inc., 1000 Second Avenue,
Seattle 4, Wash.
*
French, Incorporated, 123 South
Broad Street, Philadelphia 9, Pa.
— Thomson
2 Broadway, New Republic Aviation—Memorandum
—F. S. Moseley & Co., 120 Broad¬
the
National
Quotation
Bureau Beauty Counselors, Inc.—Analysis York|4, N. Y. Also available is a
report on Cummins Engine Com¬ way, New York 5, N. Y.
Averages, both as to yield and
Bacon,
Stevenson &
Co., 39 pany, and a
survey of the Cement
market,, performance over a 20Revlon Inc.—Data^—Van Alstyne,
Broadway, New York 6, N. Y.
Industry with particular reference
year period — National Quotation
Noel & Co., 40 Wall Street, New
Binks Manufacturing Company— to
Alpha Portland Cement, Gen¬
York 5, N. Y. Also in the same
Bureau, Inc., 46
Front
Street,
Analysis — H. M. Byllesby and eral Portland Cement, Ideal Ce¬
New York 4, N. Y.
circular
are
data
on
American
Company Incorporated, 135 South ment, Lehigh Portland Cement,
Cyanamid, American Motors Corp.,
Private Investment and the In¬ La
Salle
Street, Chicago 3, 111. Lone
Star
Cement,
and
Penn
Beech Aircraft, Burlington Indus¬
dustrialization of
Puerto
Rico— Also available is
an
analysis of Dixie Cement.
v
tries, Emerson Electric Manufac¬
Reprints from monthly Review— Univis Lens Company.
Hagan Chemicals & Controls, Inc. turing Co., Hertz Corp. and Pitts¬
Federal
Reserve
Bank
of
New
Bourjois, Inc. — Analysis — Boen- —Report—The Milwaukee Com¬
burgh Plate Glass.
York, New York, N. Y.
ning &
Co.,
1529
Walnut St., pany, 207 East Michigan Street,
Ryan
Aeronautical
Company —
Puerto Rico: A Thriving Field For Philadelphia 2, Pa.
Milwaukee 2, Wis. Also available
Analysis — Robinson & Co. Inc.,
Investment
Illustrated brochure Central Hudson Gas & Electric—
is a brief review of Culligan Inc.
42 South Fifteenth Street, Phila¬
—Government Development Bank
Report — Peter P. McDermott & and an analysis of the Profit Po¬
for Puerto Rico, San Juan, Puerto
delphia 2, Pa.
; ■
tential in Water.
Co., 42 Broadway, New York
Averages
Also
Co.,
Folder
compari¬
Dow-Jones
Sales.
Engineering
Pine
industrial
listed
the
between
stocks
—
up-to-date
ment
on
General Instrument Corporation—
which
stocks
better than the
market, and which have declined
more
than the market—Pening-
Organization,
Broadway, New York
Industry
and
Automobile
Also available are reports
Mitsubishi Shipbuilding and
on
Corporation-
Understanding Put & Call Options
in
bulletin
a
Viscose
American
Also
performed
Over-the-Counter Index
Equipment Leasing Field—Review
stock
Broadway, New York 6, N. Y.
showing
Co., 120 Broadway, New
York 5, N. Y.
V
and
&
Ohio Oil Company — Analysis
Carl M. Loeb, Rhoades & Co., 42
Batteries—Report Wall
Street, New York 5, N. Y.
on Campbell Squp.
—Eastman Dillon, Union Securi¬
Also
available
are
Life Insurance Companies—Com¬
reports
on
ties & Co., 15 Broad Street, New
Stanley
Warner
parative performance analysis of Amphenol Borg—MemorandumCorporation,
Also available is Shulton, Inc., Western
Merrill Lynch, Pierce, Fenner & York 5, N. Y.
65 stocks showing 20-year prog¬
Natural
Incorporated,
70
Pine an analysis of American Broad¬ Gas Company, Whirlpool Corpo¬
ress
with
comparative earnings Smith
casting Paramount Theatres.
ration, Western Auto Supply and
for
1955-1959,
book values fdr Street, New York 5, N. Y. Also
1958-1959,
current
price
times available are memoranda on Bax¬ W. T. Grant Company—Survey in Westinghouse.
ter
Laboratories, Burling Indus¬ current "ABC Investment Letter"
earnings ratio and actual and
Oil Companies—Comparative fig¬
adjusted earnings—$2.00 per copy tries, Continental Oil, Eagle Picher —Amott, Baker & Co. Incorpo¬ ures on first
quarter earnings of
Co., Eaton Manufacturing and En- rated, 150 Broadway, New York
(which includes without charge a
leading companies—Montgomery,
38, N. Y. In the same letter are
similar analysis on 25 new and nis Business Forms.
Scott 8c Co., 120 Broadway, New
small Life companies)—Ralph B. Anheuser
Busch—Analysis—Ed¬ surveys of Norwich Pharmacal York
5, N. Y.
Leonard
&
Sons,
Inc.,
Dept. ward D. Jones & Co., 300 North Co., Public Service Electric & Gas
Company, MeLouth Steel Corp., Paramount Pictures Corporation
CHRON 5-19, 25 Broad St., New Fourth
Street, St. Louis 2, Mo.
and American Research & Devel¬ —Review—Hornblower &
York 4, N. Y.
Weeks,
Also available is an analysis of
opment Corp.
40 Wall Street, New York 5, N. Y.
Falstaff Brewing Corp.
Securities
Nomura
Electronics—Review—L. F. Roths¬
&
Corporation
ward
Electronics.;*' ;,;.■■■■**
Industry.
child
Electric
Tokyo
and
Japanese Stocks
Bank
Burnham
Steel' Corp.,
Co.—Memo¬
& Coe, Wood¬
Bldg., Washington 5, D. C.
Garfinckel
randum—Mackall
Julius
a
in
the
N.
same
Y.
Also
circular
is
report on Leeds & Northrup Co.
Meredith
Publishing Co.—Analy¬
^
Lambert—Review—Hill,
Darlington & Co., 40 Wall Street,
Warner
New York
5, N. Y.
sis—A. C. Allyn & Co., 122 South
La
Salle
Street, Chicago 3, 111.
Also
Woodlark
Gas—Analy¬
Washington Natural
available
sis— Zilka
analyses of
Pabst Brewing Company and Stone
Yale
&
Co.,
Inc.,
Portland 5,
Building,
Oregon.
Container Corporation.
Smither
are
.
&
Towne—Analvsis—Cohen,
SimonSbn & Co.,' 25
Hermes Electronics
Broad Street,
New York 4, N. Y.
Itek
Specialists in Canadian Securities
as
—
Brokers, dealers and Financial Institutions
Eli Lilly B
Co.
Yale & Towne Manufacturing
Principal for
Review
Purcell
—
Broadway,
&
Co.. 50
New York 4, N.
Y.
Gulton Industries
First Charter Financial
Corp.
Grace Canadian
Members: New York
Cross Company
25
.
Bought
•
Sold
•
Econ-O-V eyor *
Security Dealers Association
Southern Gulf Utilities
Broadway, New York 4, N. Y.
TELEX 015-220
Primary Markets In
Securities, Inc.
HAnover 2-0433-45
•
NY 1-4722
Carolina
Pacific
Orders Executed
TROSTER, SINGER & CO.
Member New York
*
74
*
*
regular commission
rates
Hi-Press Air Conditioning
through and confirmed by
*Prospectu£
on
Request
Security Dealers Association
..
Trinity Place, New York 6, N. Y:
HAnover 2-2400
at
Plywood
Manufacturing
Standard
'
*
Members: Principal Stock
The
Teletype NY 1-376; 377; 378
National
25
Association
PLYMOUTH SECURITIES
Exchanges of Canada
of Security
Dealers
Broadway, New York 4, N. Y.
*
,
CORPORATION
,.
92 LIBERTY STREET* N.Y. 6.
Dlflby 9-2910
•
Teletype
»
N.Y.
N'.Y.'*1-4530
Number 5952
Volume 191
The Commercial and Financial
Chronicle
...
(2157)
of
amount
of
less
financing to securities
than
five
years'
of
America, such groups include
the National Association of Home
maturity
—and this will be the inevitable
result if interest rates do not de¬
cline
Builders,
Lumber
significantly from present
Washington, D.C.
and the
ceiling is not re¬
moved—may add unduly to pres¬
V
sure
"
.
on
Thus,
Estate
short-term market.
short-term interest rates
ing on
Federal bonds, Treasury official declares the Government
does
term
funds they maintain in savings institutions. Mr. Walker admits the
ize
on
had no other choice at that time. The Treasury
marketable bonds to
liquidating (them)
been
T
.
.
.
.
institutions
.
on
would have acted favorably
interest rate
the 4V4%
ceiling
bonds.
With
the ceiling re¬
nt o v e d,
i t
would be pos¬
.
between
1946
and
of
of
than
marketable
five
issues
of
years'
determined
But
efforts
despite
during
past seven years, the passage
of time has moved more and more
securities closer to maturity.
Moreover, if the marketable debt
does not
of
we
change and no securities
years' maturity
issued, the under five-year
more
than five
intended to
are
proceed with
the important
debt will swell to 87% of the total
by the end of 1964.
of
problem
Debt-lengthening must, there¬
fore, continue to be a high prior¬
a huge public
ity goal of Treasury debt manage¬
debt that is
/ ,<
v; ment.
Otherwise, the average
much too short in maturity,^ and length
of - the
debt
will grow
how we intended
to coordinate shorter and shorter, and Treasury
debt management with
govern¬ refunding operations will occur
ment fiscal and monetary policies more frequently
and in larger
to promote
orderly economic amounts. This will not only tend
re-structuring
Charls E. Walker
s
to disrupt the government secu¬
growth without inflation.
But circumstances force me to rities.
market, but will also com¬
do otherwise.. Almost 11 months
plicate the f lexible administration
have elapsed since the President of Federal Reserve credit
policy.
originally requested removal of The .relentless shortening in the
the interest rate ceiling, and still
public debt cannot be viewed with
has
action
no
debt
result,
taken.
been
management
As
a
clearly that
as
to result in
become
a
'
'
^
are
savings institutions, with
a
resulting back-wash effect on
the mortgage market. I shall
say
about
more
management
this
under
a
weapon
the
in
subject
so
of
for
news
a
the
rates, then
actions
.
basic
.
a
therefore,
:
;»
The
Ceiling-Removal
utes.
first
and
argument is
few min¬
that
ceiling would
will continue to reflect
the
basic
supply,
1918
forces
of
with
view
the
of
force
of
-
^
most
familiar
removal
cause
of
the
interest rates
in general,
these
World War I, has
effectively pre¬
vented the
Treasury from selling
more than a token
amount of
long-term securities for almost a
from
rates
run
preventing interest
market in which the
Treasury
Federal
fiscal
and
monetary
message to Congress last summer.
He said: "To prohibit the
Treasury
from paying the market price for
long-term
practicable
is just as im¬
telling the Defense
money
as
Department that it cannot
.
the request has received most of the past year, however, some of those who oppose removal
widespread editorial endorsement such yields have exceeded 4%%. of the ceiling argue that such ac¬
tion would only serve to enrich
in • newspapers
The fact is, of course—and this
and periodicals
throughout the country, and al¬ is no news to people who deal in the large financial 'institutions of
most
without exception leading Government
underwritten mort¬ the nation. This view is basically
professional economists have ad¬ gages subject to statutory interest in error because interest rates, as
vocated removal of the ceiling in rate ceilings — no Government- noted above, are not determined
testimony before Congressional decreed interest rate ceiling can by government edict but by forces
-
committees, and
in- other
forces of jdemand and
supply from exerting their effects
representing so long as credit markets are free.
Furthermore, various
tional
associations
both borrowers
prevent
state¬
ments.
and
lenders
na¬
have
We cannot repeal the quotations
provide on
outstanding Government secu¬
Treasury flexibility in
debt management. In addition to rities that are the product of each
the Mortgage Bankers Association day's free market trading
among
supported
legislation
to
the needed
This
is neither
announcement
an
offer
to
of demand and supply; in and of
itself,
do
of
removal
would not
rise. But
the
when interest rates
increase, it does not follow that
the
financial
institutions
selves receive all
of
the
Continued
sell nor a solicitation of an offer to buy
made only by the Prospectus. -■
any
mature
in
five
present in a prosperous
years or less and on
which no in¬ economy. But because of the in¬
terest rate
ceiling applies.
terest rate ceiling, Treasury debt
management — the third major
Ceiling-Removal Arguments
government financial power-—has
There are three
major argu- actually contributed to the infla¬
removal of the ceiling. tionary potential in the economy.
"
A third major argument for re¬
"J® first place, forced reliance
oo
short-term financing contrib- moving the interest rate ceiling
jes to further shortening of a arises from the distortions in
marketable debt that is already credit markets that result from
juch too short in maturity. To- confining government financing
5' almost 80% of the market- to short-term securities. Even
voie
^
*s
matures
figure
within
five
contrasts
with
ini?'1946 and 6?% at the end
thJi2* M°stof the shortening in
e
nf
debt
on
of
these securities. The offer is
_
May 18, 1960
391,431 Shares
Common Stock
(Par Value $1
Price
Copies of the Prospectus
may
$11
be obtained in
and the other several underwriters
as
may
Share)
per
per
Carl M. Loeb,
Share
State from only such of the undersigned
lawfully offer the securities in such State.
any
,
Rhoades & Co.
Piper, Jaffray & Hopwood
Goldman, Sachs & Co.
:;
.
Bear, Stearns & Co.
Equitable Securities Corporation
Hayden, Stone & Co.
Paine, Webber, Jackson
J. M. Dain & Co., Inc.
Kalman
during the postwar
pe¬
&
&
Curtis
Company, Inc.
always
we are now operating with
balanced budget, the Treasury
though
a
$70 to $80 billion
of marketable securities each year.
The confinement of so huge an
must turn over
Bache&Co.,
Blair
Bateman, Eichler & Co.
&
Co.
Incorporated
Boettcher and
Company
J. C. Bradford & Co.
"
R. S. Dickson &
;
A. G. Edwards
Company
&
Sons
Incorporated
Johnston, Lemon & Co.
Goodbody & Co.
•
" '
/
•
.
•
...
.
■
.
'
.
.
Prescott, Shepard & Co., Inc.
;
'
,
■
.
r
*
v
/
.
' • ;:/
„;
.
.
Winslow.Cohu & Stetson
'
.
ceilihg
interest rates to
cause
even
own, the
that
can
borrow. President Eisenhower put
the matter succintly in a special
off at maturity.
Through no choice of its policies have been used effect¬
Treasury has had to rely ively in recent months to contain
almost
completely on new issues the inflationary pressures that, al¬
ot
notes, certificates, and bills — though sometimes dormant, are
of
over,'
securities to obtain
spending for goods and
services, either by selling the se¬
curities or by simply letting them
and
responding to market
forces, the real effect of the ceil¬
ing is to prescribe the area of the
for
year.
securities
changes in
estate
apparently too few people realize
excessive reliance on short-
cash
the
pay the
including those on real
fair market price for a piece of
mortgages, to rise. But if
equipment. The result would be
the ceiling were
truly effective
the same in either case: the Gov¬
impartial
observers
are
under¬ in holding down rates, it would be
ernment could not get what
it
standably puzzled as to why Con¬ logical to expect rates on out¬
needs."
gress has not yet acted favorably standing Government bonds to re¬
on the President's
As a corollary to this argument,
request. More¬ main below the ceiling. During
In
arguments—and there are others
that could be mentioned—m
any
that
short-term
pro¬
of
demand
.
in connection
par¬
including
Rather than
Arguments Against
vital
particular financing operation of
lenders,
not revert to
unfor¬
almost
must
we
of
freedom
marketplace, and do
weakest
it remains
because
s
lished in
the
borrowers, and all market
ticipants. But so long as we
tect
^
think,
.
importance to term issues in debt management
the mortgage industry and to the
can also exert strong inflationary
American people.
And if I re¬ pressures.
This is because the
count various arguments that we
shorter the term of a government
have made in the past for removal
security, the more like money it
of the ceiling, I do so because we
is. A 25-year Treasury bond is a
still believe that these
arguments true investment instrument, but a
are logical
and compelling, and government security maturing
that those who oppose removal of
within a few days is almost the
the ceiling have not as
yet pro¬ same as cash. Similarly, a secu¬
vided
convincing answers to the rity maturing within a few weeks,
arguments, nor have they offered a few months, or even a year or
an
acceptable alternative to the two automatically turns into cash
President's proposal that the ceil¬ within a relatively short period of
ing be removed.
time.
Thus, a large build-up in
The facts of the situation are fa¬ short-dated government securities
miliar to many. A 4V4% interest increases the inflationary poten¬
rate
ceiling on new issues of mar¬ tial embodied in the government
ketable Treasury bonds, estab¬ debt; holders can easily liquidate
a
trol interest
control,
our
financial
year—I do
would
,
Progressive shortening in the
maturity of the public debt has
arsenal of govern¬ another
important implication,
ment financial policies to promote
which leads to the second major
sustainable economic growth, and
argument for removal of the ceil¬
the debt of course grows shorter
ing. All of us realize that the un¬
and shorter in maturity.
bridled creation of new money to
Thus, if I concentrate on what finance government deficits or to
may appear to be an old subject pay off maturing issues would re
—one that has been very much in
suit in disastrous inflation.
But
remains -the
tunately
Govern¬
..
presented?
restrictive
a
interest rate ceiling in
of
ment securities. If we would con¬
the impact
National flexible
monetary policies.
very strong arguments. What
the arguments that have been
of 'debt
aspect
;
Bureau
some
so
im¬
severe
the
that those who oppose removal
of
the ceiling must base their case on
on
.
V
complacency.
One
Farm
the
and
Grange. /'
experience
pact
the
to
the
how
billion
these
Treasury
on
occurred
end
have been marketed.
the
pf
views
the
Federation,
credits—woukL be
Moreover,
great
maturity.
Since the end of 1952, $49V2 bil¬
lion of over five-year securities
Treasury
present
riod
more
on
sible for me
.
short7term
curtailed.
1952, during which
request time the Treasury sold only $5.2
President's urgent
the
to remove
.
and
last autumn indicated
such
distortions can
during much of the postwar period."
.
expected that by this time Con;
gress
but (they) have
...
businesses,
Association,
tion, the American
con¬
farmers, all of whom rely heavily
Assistant earnestly hopes Congress will not adjourn without taking
recommended action. He also points out "we had much rather sell
our
small
sumers,
"Magic 5's" popularity caught the Treasury by surprise but explains J
why the Treasury
borrowers—particularly
Boards, the National Small
American Bankers
Association,
the Investment Bankers Associa¬
ability of credit to private short-
intend to sell large amounts of securities to individuals who util¬
not
Real
thousands of holders
Savings Banks, the United States direct
controls, interest rates—or
Savings and Loan League, the the
price of borrowed money—
be higher than otherwise
would be the case, and the avail¬
rate ceil¬
of
National Association of Mutual
would
answering arguments raised against removal of interest
In
Retail
Association,^the
Association
Businessmen's
the
National
Dealers
National
levels
Charls E. Walker,* Assistant to the Secretary of the Treasury
Uy
the
9
Incorporated
them¬
benefit.
page
20
10
We Must Free Ourselves
.
.
savings for profitable
We must each do
ments
investment.
'
Key Appointments
including
of our economy,
and prices—and thus
insure sound growth and develop¬ severely undermine the basic free
ment. In this task the role of the enterprise character of our econ-
From Mistaken Notions
our
both
to
part
wages
is clear cut—it °
Today we
savings and must
minimize the substitution of bank encouraging
Federal
must
By William McChesney Marlin, Jr.,* Chairman, Board of Governors
maximum sustain¬
a
Executive
the
of
concerned with
are
major
of
ties
Directors for two
borrowing authori¬
Commonwealth 0f
the
Puerto Rico
growth for our econ¬
able rate of
credit for savings.
of the Federal Reserve System, Washington, D, C.
In Puerto Rico
New
Reserve
encourage
Thursday, May 19, 1960
.
steady flow of eventually encompass broad seg¬
to encourage a
as
Chronicle
and Financial
The Commercial
(2153)
were
announced
May
"Growth means jobs. Since
Non-Fixed Role of Interest Rates growth is dependent on savings
Federal Reserve head declares predetermined interest rates cannot be
and savings in turn rest on the
This means that adequate at¬
maintained without depreciating our currency and denies we can
foundation of a dependable dol¬
tention must be given to the role
depend for any substantial length of time on selective controls. Mr.
of interest rates in our economy— lar, then it should be clear to all
Martin hopes we can achieve widespread public understanding of the
that a dependable job and a de¬
a
role that is greatly misunder¬
need to encourage savings by maintaining a dependable dollar so as
stood by many citizens. We must pendable dollar go hand in hand. »
to help assure the brightest economic future we ever anticipated.
am
confident that if we can
bear in mind that interest is a I
achieve widespread public under¬
wage to the saver as well as a cost
It will take to the borrower and that people standing of these basic principles,
Economic growth can come only the next ten years.
from savings. Over the years we over 13,000,000 new j9bs to pro¬ should not be asked to save with¬ the capacity, the energy, and the
omy.
*
have
most
been
United
existence
as
fortunate
that
States
early
in
in
the
our
of
types
insti¬
were
established
to
mobilize
indi¬
vidual
sav¬
ings. Mutual
savings banks,
organized in
1816, were the
first
thrift
Basic
institu¬
tions.
Efforts
to
to
the
whole
encouraging savings
of individuals
promote
of confidence
savings and to
invest
out
adequate
getting
W.
McC.
of
process
the potential for the
brightest economic future this na¬
give
on
the
part
is the maintenance
in
the
value
the
of
funds in homes, industrial expan¬
sion, State and municipal im¬
provements, and Federal Govern¬
ment expenditures have been of
material
assistance
in
financing
dollar.
Unless
assured
Martin, Jr.
these
that his funds will retain
their
value
them
use
has little
Money
the
until
for his
or
no
saver
he
own
is
can
ready
to
purpose
he
incentive to
must
be
be
more
save.
than
a
;,y.
anticipated.
Mr.
Martin
of
ciation
the
at
40th
the National
Conference cf
Annual
ton,
by
Banks,
Mutual Savings
Asso¬
Authority, which com¬
prises virtually the entire electric
power system of Puerto Rico, and
Neuberger &
Bermanto
which
Admit Partner ^•
Neuberger & Berman, 120 Broad¬
way, New York City, members of
the New York Stock
operates. Further, our econ¬
omy is not isolated but is strongly
influenced
by the economies of
omy
June
will
1
Exchange,
admit
William
on
A.
To Be
this
standard
be
a
of
value—it
storehouse
of
must
value.
also
When
Continent
the
of
Africa
New
York
currency
ists
the
in
than
in
cf
area
interest
other field.
any
(.Special to The Financial Chronicle?
rates
MINNEAPOLIS,
World¬
R.
wide markets must be competitive
if they are to be maintained. We
not
are
seeking
or
higher interest rates
Authority
as
are
We
i
v.
,
must
free
ourselves
•
of
C. L. Andrews
/...
.
Robert
LONG
■'
BEACH,
Andrews
gage
8th
7•
Opens
innocuous
has
Calif.
opened
—
C.
offices
Long Beach Boulevard to
in a securities business.
L.
an
offer
J he
.
',
to sell nor the solicitation
offering
•
ts
made only by the
Urrutia
assistant
began
his
Municipal
Works
Rico. He became
v
t
Rico
a
A
t
Copies of the Prospectus
,
which
Bank
he
had
Secretary
of
been
the
of an offer
of the
may
Arts
Puerto
of
Rico
the
and
Halle & Stieglitz
University
attended
ceived
his
master's
agricultural economy.
buy
any
of these securities.
May 17.1960
V;
any state from such of the several
Underwriters,
lawfully offer the securities in such state.
Francis I. duPont& Co.
graduate
University where he
be obtained in
as may
a
Cornell
to
of
College of Agriculture and
Mechanic
of
Assistant
charge of financial
Incorporated
Bache & Co.
in
Puerto
Treasury
A. G. Becker & Co.
Insurance Corporation
Board
for
INSTITUTION
Member Federal Deposit
De¬
August, 1959, prior to
Puerto Rico in
' -
'
including the undersigned,
.
i
c
MUTUAL
the
Mr. Labadie has been Executive
Price $13,875 per Share
Savings Bank
.
as
member of the
Planning
($1 Par Value)
.
career
of
Common Stock
CITY
com¬
engineer in the Bureau
Prospectus.
.115,000 Shares
YORK
the
graduate in civil engineering
University of Puerto Rico,
at
en¬
the firm name of Robert L. Waters
& Co.
\
They
This advertisement is neither
NEW
Descartes
banking business.
Rico since
Robt. L. Waters
sounding, but could
Not A New I„„
L.
enter
the
Mr.
of
to
Development
Opens
ceilings do
not work.
Further, we must free WASHINGTON, D. C.—Robert L.
ourselves of the notion that it is Waters is
engaging in a securities
possible in our world today to de¬ business from offices at 3921 Mcpend "for any substantial length Kinley Street,
Northwest, under
are
Rico
Authority,
affairs since 1955. He is
The evidence is crys¬
tal clear that artificial
selective controls.
A
of
S.
succeeds
resigned
Portl
(Special to The Financial Chronicle)
mistaken notion that it is possible
to set an arbitrary ceiling on in¬
on
Puerto
Vice-President of the Government
3600
of time
the
Sewer
1952.
the
terest rates.
of
and
partment of the Interior of Puerto
Mavroulis, Inc., 76 South
'Street.
A };
.•.V''ys.'
properly tune our eco¬
growth to a
sustainable
pitch.
E.
who
&
to
nomic
—
Leo
Resources
and
Director
Puerto
seeking and promoting an increase
in savings in relation to spending
so
Minn.
and
Water
Juan
Labadie
Eurite has been appointed Execu¬
have become connected with York
promoting
butr we
Davidson
;
has been ap¬
succeeding Mr. Urrutia who had
held that position since 1954. Mr.
Murphy Partners
Murphy &
alone
needs $6 billion for capital devel¬
f
Rico
Puerto
mercial
of
Rico
Authority
pointed Executive Director of the
depreciates saving is dis¬ opment in the course of the next New York Stock Exchange, on
Unprecedented growth problems couraged. As much as any other few years. Demands for savings May
15
admitted
Timothy A.
face us in the decade ahead. The industry in America, mutual sav¬ of this
magnitude will certainly Patrick and Stuart K. Patrick to
experts tell us that the population ings banks should be—and I'm have an effect on us. In a world limited partnership.
of this country will expand by glad to say, are—vitally concerned which
jet aircraft is steadily forc¬
more
than 30,000,000 persons in with achieving a sound
dollar, so ing closer together, it is no more ; With York & Mavroulis
possible to be economic isolation¬
r"
economy
Puerto
Sewer
Rafael V. Urrutia
Urrutia
expanding
the
provides water and sewage
Aqueduct
These other nations
also have strong demands for cap¬
For example, it is said that
for
and
facilities.
tive
Potter to partnership.
ital.
other
the
Aqueduct
.
Co., 4 Albany Street,
City, members of the
the
country.
Rafael V. Urrutia
Eurite
12—one for the Puerto Rico Water
D. C* May 10, 1960.
Resources
econ¬
our
Labadie
Juan
Wash-
'
the credit mechanism in
other nations.
talk
*A
in
Changes
us
tion has ever
interest rates con¬
stitute
important,
delicate,
and
subtle instruments through which
v
people
initiative of the American
remunera¬
tion for their money.
currency.
these
of
upon
new
office
and
fi¬
tutions
burgeon¬
Hundreds
factories, stores,
Too many people believe that
buildings will be re¬
Congress—or the Federal Reserve
quired. ; Our steadily expanding
System, or the Treasury—can turn
social needs for schools, hospitals,
a
faucet, pull a lever, or say a
homes, and highways must be sat¬
magic word and increase the
isfied. At the same time we aspire
money stream without upsetting
to
provide higher standards of
the fundamental relationships of
living for more and more people.
savings and investment processes.
To accomplish all of this will re¬
They think it is possible to hold
quire vast sums of money.
interest
rates
at
predetermined
levels without
depreciating our
Need for Confidence in the Dollar
a
nancial
for this
livelihood
population.
ing
hundreds of
several
nation
vide
Shields & Company
degree
re¬
in
Number 5952
Volume 191
.
The
.
Commercial
and
Financial Chronicle
(2159)
of
Commercial Banks Want
Do
^
t
•
TTT*
i
1
j
fn
•
-rv
words
over
the past several
years
have
been
spoken
and
written about the
Federal taxation
of our banks
and while
-i
of
some
Earl b. Schwulst,* President, Bowery Savings Bank,
Hy
Reflections of a savings bank trustee
on
the
eve
the commercial
banks and certain
trade
organizations
have
done
their best to
confuse Congress and
the public on
the real merits of
the
N. Y. City
question, the issue is really a
simple
one.
It
revolves
of his service
encom¬
very
such matters as: (1) consequences of commercial bank drive
for "tax equality"; (2) Federal charter for mutual banks and
conversion into S & L Associations; (3) making mutual funds
available
passes
around
ings
to
the
banks
porate
and (4) race relations and
non-discriminatory
Investment policy. Mr. Schwulst warns his commercial bank
friends
savings depositors;
stock
that their tax efforts may
corporate
total equality
Internal
tax
■•■■r.
dealing with
anti-recessio^ policy
;
level
of
Federal taxation and the need of
our
for-
Government
finance
cluding
its many
the
banks
in
promoting savings, and
consequent deposit-growth of
those banks, and
their need to
protect those savings
against loss
through the retention of sufficient
the
money Tto
programs,
in¬
defense of our
earnings for that purpose. Never¬
theless, it is entirely proper for
the Ways and
Means Committee
country, has
understand¬
ably prompted
the Ways and
Means
Com¬
provisions
or
of
at
its
the
pleasure
Code
the
affecting
Representa¬
tives to begin
associations
to
pressure
reconsidera-
have
bear
brought
great
the
upon
stockholders,
and
Ways
Committee to change
Revenue
Code. This
and
the Internal
B.
being directed
particularly to
those provisions of the Code
which
treat certain
and, therefore, I have
and
<
it
in
•
,
Although the general corporate
stax
provisions of the Internal
Reveffue Code were
made
ap¬
plicable to the
mutual
savings
banks by the Revenue
Act of
the deductions
accumulation
serve
permitted
purpose
and effect of
Internal Revenue Act of 1951
to
of
bad
a
debt
amount
of
Federal
a
the
the
savings banks, and
savings and loan associations
are
provisions
re¬
given
heard
made
very small
income
•*
the
earnings
the
was
accumulation
in
of
reserves
by
savings banks beyond
deemed by
Congress
of
the
point
adequate 'for the protection of
depositors. The Act taxes at the
full
corporate
and
over
rate
any
the
bank
will
the
to
year
margin
mately
has
the
been
this
is,
same
by
growth
approxi¬
margin
that
maintaining against
it
its
existing deposits.
In
the
try to
run
the
Bowery,
along with
a
we
margin of
about
10% of our deposits and
therefore we try to
margin our
growth by 10% and
normally we
do.
This
is
probably
characteristic
of
of
the
roughly
general
run
New York
taxes
covered
of
before
While
the
the
same
Code, will
opportunity /to
every
in
by
the
changes
any
Code.
hundreds
.
ernment
the
and
growth.
the
needed
In
this
to
margin
illustration,
interest
credited would have
to be reduced
by about one-sixth
to
provide, after corporate
taxes,
a margin of
10% for the interest
credited and a margin of
10% for
the
is
new
money
much
as
deposited. There
serious question
a
new
as
to whether
money
would
deposited if the interest
paid
reduced
is
so
substantially.
at
once
obvious
that
gravely restrict their
ability
to
encourage
thrift
would operate in effect
indirect tax upon the
as
and
heavy
a
interest paid
to their
depositors (a tax in addi¬
Savings Banks.
tion to the direct
personal income
)
Now, coming back to our ex¬ tax
paid by the depositors
upon
ample: if the savings bank has hadthe interest
actually credited),
a
growth of 6%
during the year,
Our
Government, in its con¬
it will
attempt to retain earnings sideration of
-
eqttal
to
the
10%
of
that
growth,
approximately 6/10th
beginning deposits.
of
its
taxes
take
of
of.
Federal
approximately
retained
obviously be able
by 10%
only
growth
equal
amount
It
of
would
a
not
the
new
therefore
faces -a
but
very
serious
policy
decision.
These
institutions
growth
They
to the home
home buyer, to in¬
dustries needing plant and
equip¬
ment, and to our state,
to
only about the
interest credited.
therefore be
able
to
money
reduced
municipal,
and Federal
viding
their
Governments in
long-term, funds to
pro¬
meet
borrowing requirements. Our
economy badly needs
in
savings. Are the
expanding
deposited, but
it
of the little man.
important
are
builder, the
to margin
of 3%—a
the
both—unless
institutions,
simple
the thrift needs
margin by 10% either the interest
or
■
are
If
the
George O. Nodyne
-
i
an
increase
the
Continued
on
page
earnings
of
i
both.
>
typical savings
New York
of
I;
■
State
is
bank
in
doing its job
encouraging people to save, it
will grow
thousands
combination
'
normally at
an
average
annual rate of about 6%. That
is,
President
■
*.
t»
/ >
' ■-
The Acorn and The Atom
In
Dry Dock Sayings Bank has paid dividends
at every
our time we
emerge
as
have
seen
°f the
tiny atom
king of the physical universe.
But what of
the humble
tional thrift been
atomic
the
acorn
? Has tradi¬
outpaced by the new
an example
vitality and magnitude of thrift to¬
age? By
no
means! As
interest period since its founding, at
the highest rate consistent with
safety. That
day, take the East River story. Since 1848,
growth in deposits, in number of de¬
positors, in thrift facilities and range of
record, the
the
services, and in total
half
a
of the
assets—now
well
the
over
Dry Dock
truly that
proverbial acorn-to-mighty-oak.
26
Cortlandt Street
no William Street
41 Rockefeller Plaza
■;
•
serves
Main Office: 742
Delancey Street
Assets exceed
60 Spring Street
few of the
are a
•
600 million
over
Life
1960
dollars,
reasons
con¬
why
225,000 depositors..
Insurance
•
•
Mortgage Loans
Foreign Remittances
Dry Dock Sayings Bank
136
•
over
services, and the five
Travelers Cheques • V. S.
Savings Bonds
518 Seventh Avenue
Thrift Offices in New York
extra
Savings Accounts
EAST RIVER SAVINGS RANK
Five
assets of
helpful
venient offices
billion dollars—has been
Lexington Ave., New York 22, N. Y,
at 38th Street
at
Norfolk
$625,000,000
.
111 Second Avenue at 7th Street
*
• Member
67 Avenue C at 5th Street
Federal Deposit Insurance
Corporation
743 Amsterdam Avenue
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION
our
particularly important in meeting
earnings
(which they would do at thepresent corporate
rate), the bank
would
of
are
away
those
or.
1%
If
taxation
,
a
the
application of the corporate rate
of taxation to the
mutual savings
banks would
above that amount.
or
be
were
Fears Effect Upon Deposit Growth
be
be
>
of
results
that
interest would likewise
be.subject
to the
tax, it would have to reduce
the interest
$2 for every dollar
retained to replace
the original
earnings taxed away by the Gov¬
It
of
case
depositors.
the
reduction in
any
no
mutual
which
banks, for example,
resulted in
prevent
-
differ from those
applicable
to commercial
and have
are
by the depositors.
year
average,
adequately—that
half
•
.
the
attempt to retain (and should re¬
tain) only enough earnings
during
to
paid
-
will
Our
1951,
for
Committee,
•..■>_
•/
savings banks
,
„
interest
And, since
It
is
fear that
apparent that
once
the
permit
the
margin of reserves
commercial proper
re¬
banks to rewrite the provisions
quired to protect deposits is deter¬
of
the Code
affecting us. If those mined (whether by Congress, by
provisions are rewritten,
they will /the states, or by the Trustees),1
be rewritten
by the Congress and the taking away by taxation of a
only if Congress should be con-: portion of the earnings needed to
vinced that the provisions need maintain
the
reserves ' at * that
rewriting in the public interest. figure wilbhave either one or two
taxpayers differently
from others. The
Ways and Means
Committee wants to
satisfy itself
that these
differences in treat¬
ment are sound
and fair
the public interest.
primarily
quite properly from their
desire to augment their
profits.
This motivation is
understood by
the Ways and Means
Schwulst
:
The
trustees
as it
applies to
Their interest in the
Revenue
Code
revisions
stems
therefore
required by law to retain
earnings
for the protection of
depositors.
us.
of
they
not
against loss for the protection
of
provisions
Means
do
depositors/
such
Earl
these
-
the Revenue Code
re¬
is
depositors, to whom they are
taxed, or retained as a reserve
tion of the
consideration
commer¬
devote any of
the earnings from the
investment
of their
depositors' funds to bene¬
fit
stockholders. Their
earnings
are
either paid out as interest
to
the
and
is
On
profits
which
the
Revenue Code seeks to
In most state
ers
a
during the
that
a
cannot
other taxpayer.
any
A number of
commercial bank¬
and a number of their
trade
of
House
reconsider
us
the
of
mittee
to
no
represented
by
the
credited. If the
savings
is paying 3%
interest, then
its
growth
will
be
represented
about half and half
by the interest
credited and by the new
money
saved and deposited with
the bank
cor¬
corporation for their
benefit, and
which, if retained, increase the
•
deposits
interest
bank
no
collected from
savings banks. This' book value of the stock and
may
inevitable, given the great" be realized upon by the stock¬
need of the
economy for savings," holders through the sale of their
the prominent role
played by our stock. Mutual savings banks have
high
generally
to
increase
in
sense
was
Federal Taxation of
Mutual Savings Banks
The
The
>
have
the
ings which are either paid out
to
stockholders or retained
by the
so that we cease
debasing our currency with printing press
money.
in
sav¬
corporation.
Corporate
profits are the corporation's
earn¬
pro¬
poses measures
really
profits
corporations like
banks
have.
It
cial
boomerang as mutuals will seek real and
with them to their competitive disadvantage. He
hopes
this retaliatory step and/or insistence that commercial
banking tax
advantages be withdrawn will not be necessary. The banker also
fact that mutual
its deposits at the end
of the year
will be 6% greater
than they were
at the
beginning of the year. This
growth will include the
11
mm
32
12
Form S. P. Levine Co.
FROM WASHINGTON
...Ahead of the News
CARLISLE
securities business
60
at
be
as
saddened ,about the outcome
the Summit Conference as are
of
of
Russians
must
BARGERON
we
Americans.
The
first
ident
did
President
want
not
from offices
are
Stanley P. Levine, President and
Treasurer, and L. Levine, Vice-
By Edward N. Chapman, M.D., Colorado Springs, Colorado
Financial Counselor, Colorado Springs National Bank
Secretary.
and
Twin City
Millions
-
Y.—S.'P.
Officers
Drive.
Magro
FARGO, N. Dak.—Twin City Bro¬
But the kerage, Inc. is engaging in a se¬
too much. curities business from offices at
He finally decided that he would
4 xk South Broadway.
'' ■
do anything if it helped promote
him
on
we
wholly without pened, it is doubtful that Khrush¬
not
are
chev
V'
Khrushchev
When
left
this
country he seemed to be in glow¬
ing mood, at
with the world.
This was so despite the fact there
had been demonstrations against
him.
peace
He seemed to have
affec¬
an
tion for Mr. Eisenhower
as
who
much
wanted
peace
as
man
a
as
he, Khrushchev, presumably did.
He went back to Russia and
dered
the
their
Russian
to cease
press
attacks
upon this
country.
thereafter was light
the part of the Rus¬
Everything
love
and
or¬
on
sian premier. We did not respond
in kind. Our statesmen were fre¬
to
having accepted
the
return
invitation
an
visit..
Our
news¬
have
found
other way of torpedoing
ference.
Yet, outwardly
the
Building,
after appraising the econ¬
Because of the stock market's vul¬
nerability he recommends a portfolio ratio of about 40% stock and
60% bonds. He doubtSr the Sixties can repeat the lush market per¬
Mr.
con¬
There
•"
is
whether
speculation
the
'ij
now
as
to
This would be tantamount to ad¬
Named Director
to
influences
in
were
country
this
There
who
were
trying to sabotage the
clear
weapons
All
neva.
nu¬
the
B. B. Gilbert
LITTLE ROCK, Ark.
B. Gilbert is
—
ner
time,
a
still
He
had
confidence
in
Mr.
NEWARK,
Eisenhower.
This period of peace
will was immediately
in
a
offices
securities
at
120
the
approval
himself.
of
And
Mr.
not
N.
-
J. —Mrs.
Richard
E.
Kohn
Brothers
Ru¬
ROCK,
&
Co.
Ark.
has
—
process Russia's own
to practice espionage
opened
a
branch office at Fourth & Center
Streets with William H. Brown
Manager
sistant
and
Roy
A.
Gross
Manager.'«
as
As¬
'
the
to
up
Senators, Republicans and Dem¬
alike, are saying that we
ocrats
must
uphold the hand of the Pres¬
ident.
That
is
amazing
an
Stitzer Nominated by N. Y. Bond Club
Raymond D. Stitzer of White, Weld & Co., has been nominated
for president of The Bond Club of New York
to succeed William
B.
Chappell of The First Boston Corporation.
The election will
show
will say.
The Republicans
an
effective
Democrats
trusted
The
issue
in
the
brink,
used
Russians
New Deal
was
and they made
impact upon the
of this country.
omy
not
the
slightest
fate
There
Haymoiid t>. Stitzer
v
.
W. Scott Cluett
,
,
James F. Burns, III
Maitland Ijams
Eisenhower
in
Khrushchev
to
and
accepting
invitation to
an
this
If John Foster Dulles
living
there
is
a
safe
no
Joseph Ludin
Allen J. Nix
George Murnane Jr.
Country Club, Scarborough, N. Y.
secret that the Pres¬
not
expand
their
businesses
government and in the future.
(6) I believe that economic and
financial
education has
improved
years in
this country thanks to responsible
financial
publications like The
considerably
the
over
mon
which
I
have
indication
of
is
seen,
stocks
into
attitude
in
there any
marked
any
bonds
shift
cash.
or
general
correction
to
amount
Few
more
seem
of
which
to
to
the
is
much
see
a
not
us
first examine some of
the strengths in the
present mar¬
ket and economic
situation. Most
of these are
population
is
*
has
we
beginning
Nominated to succeed Mr. Stitzer
Day at the Sleepy Hollow
to
^
as
vice-president is W. Scott
new
slate of
& Co., Inc.,
secretary, and George Murnane, Jr. of Lazard Freres
& Co. for treasurer.
As
new
nominated
Ludin of
members
of
the
board
'20s.
goods
and
of
governors,
the club has
Maitland T. Ijams of W. C. Langley &
Co., Joseph
Dillon, Read & Co., Inc., and Allen J. Nix of Riter & Co.
(2) Tremendous sums
by industry and
spent
ernment
search is
on
research.
no
some¬
decline
services
being
our
This
gov¬
re¬
constantly bearing fruit
—
products that should
expand
(3)
industry.
The stock
com¬
more
was
studies
in the late
of
factor
better
least
informed
of the
some
concerning
at
dangers and ex¬
that creep upon them. The
SEC has put a stop to much of the
cesses
irresponsible, misleading financial
propaganda I remember
so
common
in
the
'20s
as
being
preceding
the '29 market crash.
(7) There is much less borrow¬
ing to buy stocks than in the 20's.
Margin requirements^ were the
10% now they are 90 %. Individ
uals cannot be made to sell thei
securities
Mutual
on
declining market
can b
a
investment trusts
compelled to do
so
as
will be ex
plained later.
Elements of Weaknesses
;
Let
us
tion.
examine some of
now
weaknesses
in
Some of
vious
than
th
present situa
these are less ob
the
the
strengths
men
tioned above.
(1) The shortages created b:
World War II and the Korean con
flict have now been eliminated
This
removes
demand
a
for
a
very
goods
importan
that has bee
stimulating factor for the pas
15
years.
(2) Inventory build up necessi
by underproduction durin
tated
1937-58 recession and by tn
long steel strike has been almos
the
completed.
are
in the form of new
and desirable
products
Serious
affecting the business economy
undertaken by the various trade
journals keep businessmen much
been
is
will not
efficiently and productively
employed and become good con¬
of
re¬
■
themselves.
Cluett of Harriman Ripley & Co., Incorporated.
The
officers also includes James F. Burns, III of Blyth
nominated for
prehensive than it
are
sumers
information
any¬
decline
than 550 in the D. J. In¬
Our
Statistical
government is far
our
people
be held June 3 at the club's annual Field
some chance of suc¬
President Eisenhower agreed
with him.
com¬
New family
formation is reported to be
slow¬
ing. It should be added that mere
numbers of people do not add to
economic strength as China
and
India attest unless those
still
cess.
in
stocks amounts to approxi¬
mately 90%.
In very few of re¬
cent investment trust statements
decades
that
ference had
will
gov¬
intended to
Businessmen
portion, leased
by various departments of
invested
from post war levels.
bet
an agreed
upon agenda and earlier
spadework to show that the con¬
trust
However, the
higher birth rate of the past two
were
upon
There is
the
what slower rate than has
existed
since World War II.
re¬
there would have been no
summit
conference. He had insisted
of
radical
no
though at
country
Their theme
was, you can't
trust the Russians.
by the
were
icle.
of
to believe that
continue to grow
invit¬
ing
anything,
frightened by
taken
which
years
If
were
measures
this
period,
Commercial and Financial Chron¬
reason
doubt
turn.
that.1
after
ernment
in
of
(T)
many
prominent
country who thought
wrong
the
growing rapidly and there
the Democrats.
was
they plan
fairly obvious.»
were
in this
men
as
the
1933-1936
little for several
very
even
businessmen
life
Elements of Strength
have been sucked in and met
same
of
Let
econ¬
Republi¬
cans
majority
walks
dustrial Averages,
that the Democrats
brought the
Russians to their present place of
eminence. But now the
the
the
In
to
slovakia, Poland and East Berlin.
is
and
confidence
percentage
likely
The Democrats got in bed with
them in World War II and trusted
them thereafter to
peacefully set¬
tle the issues of
Bulgaria, Czecho¬
There
in
country
did not gen¬
measures
unless they have confidence in the
the
all
in
tre¬
a
time,
me
way.
much.
mendous
experienced
any
talked appear
be cautiously optimistic.
The
heads of some large investment
honeycombed
with them
than
to
market
latter
too
a
long term outlook is excellent
why bother with any intermediate
the
the
have
may
of large funds as well
as
the man on the
street, judged
by my sampling, is that since the
have
against
that
we
managers
they
to
Chapman
strength must be
the statement that
business
erate
Dr. E. N.
with whom I have
The
campaign? No, they
will be telling us how the Presi¬
dent's policies almost led to war.
the
price.
a
by
inflationary
Of
The
in
con¬
particular
modified
since World War II.
from
Presidential
to
this
,
y
decrease
edge. But will the Democrats be
saying that in the forthcoming
us
a
by
At this
investors
imagi¬
seemingly
at
-/
(5) Neither political party will
permit a depression, if through
legislation of inflationary meas¬
ures, it can be avoided. However,
since
a n U a r
thai
while
the
stocks in their trust portfolio.
at least four instances the
of how politics ends at the water's
It' carried
drop
selling
available at
as
trusts tell
in
hilt.
in
zone
portion
Orvis
Eisenhower
the
predilection
mains
J
are
appeal to
decline—possibly,, of greater,pro¬ help and- stimulate.
Branch
unexpectedly,
forgetting
.
re¬
&
the boss of the Kremlin blew up,
conveniently
market
past, de¬
spite its 10%
Rose
mat
Many
less
ago
(4) Money rates have eased
stock
measured
associated
become
LITTLE
dolfs
Blumbergs, President; Eli
good
shattered, of course, by the plane Karlin, Vice-President; and Doug¬
lass
M.
Mann, Secretary-Treas¬
spying incident and the admission
:
that such flights were made with urer.
and
has
Orvis Bros.
business
are
and.our
selling for
five years
siderably in the past two months,
though still remaining at histori¬
cally high levels.
Credit is still
in
Nation-
number of years.
a
are
they were
at¬
new
Product
al
stocks
fantastic levels.
our
heights
Gross
tive for
nation
ask
as
high has been remarkably selec¬
ouicrs
the»chance that
en¬
Broadway,
City. Officers
market today?
stock
Co., at this year.
20 Clinton Street, members of the investor should balance the chance
New York Stock Exchange, as a in his own mind that, we can soon
customers' representative.
go:on to, greater heights against
with
Form Hampstead Inv.
New York
should
himself
high
Shearson, Hammill & Co.
Uslander
formerly with Southwest Se¬
curities, Inc.
from
of Execu¬
general part¬
a
With Richard Kohn
of Gilbert & Co. Mr. Gilbert
of irresponsible people. gaging
minority
is
economy
our
the
securi¬
was
however,
of Directors
Reed
Benjamin
engaging in
professed, to believe
Hampstead Investing Corp. is
thisky(as coming ixbm a small
that
Mr.
of
business
name
Khrushchev
Board
tone.
Opens
strength and of
in
investor
economy
mitting that the two offenses are
equal, which they are, but the Alan C. Bernstein, President of
Inc., has announced
Russians
aren't likely to admit Executone,
the election of Henry W. Reed to
that.
mathematical formula for fore-
a
pertinent question every
a
tains
conference at Ge¬
the
Building.
"long-look" to
the
exist
our
This is
fice in the Traders Bank & Trust
Co.
in
and
pilot, Francis Powers, for Col.
Abell, a Russian spy whom we
are holding in jail in this country.
might
and
casting the stock market.
weakness
HAZLETON, Pa.—Merritt, Vick¬
ers, Inc. has opened a branch of¬
Russians
and opines you can not reduce "common
of the Fifties;
formance
sense"
What elements of
•
Merritt, Vickers Office
from offices at 923
editorials were warning us
be
careful, that this bandit West Third Street under the firm
could not be trusted.
sales
be
willing to exchange the American
ties
paper
Coney
at least, fund
doing his part to 1956.
maintain good will among the two
countries.
omy's strengths and weaknesses.
been
•
past 25 years. He offers this judgment
the
announced.
has been a mutual
representative
since
has
In this paper, the doc¬
likely to have a more severe depression than any in
tor warns we are
Morton & Co. office in the Bowers
some
he seemed to be
quently criticizing Eisenhower for
inviting Khrushchev
over
here
and
wouldn't
The author has been engaged in medicine and financial
advisory and research work ail his adult life.
.
is that
started over 30 years ago with the Cowles
sake his first iove which
Commission.
w^s
thought of one who
,
'S'i. ■ /.
thinks more of politics than he peace.
New B. C. Morton Branch
Once deciding that, he decided
does the general welfare of the
to go all the way, to attend the LONG VIEW, Wash.—The apcountry, as most Washingtonians
conference and to visit Russia.
pointment of Arthur J. Coney as
do, is that it was a body blow to
If the U-2 incident had not hap¬ resident manager of the new B. C.
the Republicans. A second thought
blame.
Chapman has combined careers as he has never been able to for¬
Dr.
and fought it all the way.
pressure
write on financial matters,
1% from it being strange for an M.D. to
Brokerage
conference
a
Thursday, May 19, i960
...
engaging in
Co., Inc. is
Levine &
a
BY
N.
NORTH BABYLON,
Chronicle
Commercial and Financial
The
(2160)
(3) Foreign competition is *n
creasing and makes it difficy1
industry to meet wage de
for
mands.
between
labor
for
market
though
to
now caugh
demands made b
Industry is
the
leaders
their
for
higher
constituents
compete
in
and
wage
havm
the market ptac
Number 5952
Volume 191
.
.
The Commercial and
Financial Chronicle
.
(2161)
cost foreign goods made
|oW
11.
■
Jrf
past decade have risen
much fast¬
than
er
non-union labor This
h Cheap
-resents a
earnings resulting in what
real problem and one aPPeaP
become
to
rather
worse
to
earnings
likely
STn'better. The solutions appear
f"ie in one of the following
bidicutous
j
ratios
stocks in
turing
be
.
the
price
especially
for
electronic manufac¬
field.
The
stock
market
listed in the order chain is no stronger than its
economic - attractiveness: weakest link. Assuming that a
fa) Reducing costs of production well known representative group
of
leading industrial companies
in this country through more ef¬
the
same
ficient machinery and elimination maintains
growth
in
nf
unproductive, uneconomic earnings and pay out the same
SLtherbedding" practices. • (b) proportion of these earnings in
Building branch factories abroad dividends in the next 10 years that
in order
to benefit from cheap they did in the last and that the
labor (c) Setting back the clock market price of their stocks rises
percentage-wise in the next dec¬
to the days of the higher.tgrtff .or
Id) Devaluation of
the dollar. ade the same as it did in the last
—in other
words assume the '60s
This measure would bring only
temporary relief.
A combination repeat the growth of the '50s in
all
three
0f several of these methods might
categories
(earnings,"
dividends and market
meet the situation.
price) what
alternatives
the
f
(4) Money is tightening
United States and also: in
in the
do
we
get.
A rise in the market
price which is comparable to
more
world
than
1900
added
points in the
money markets.
England several
D. J. Industrial
Averages, a price
months ago raised the rediscount
earnings ratio with stocks selling
rate to 5%. As pointed out above
at over 40 times
money rates have recently,
and'
earnings and a
perhaps temporarily, eased in this
country as a result of unexpected
lessened demand. However, there
is a very definite limit to the
degree that money rates can be
the
by
lowered
Federal
Reserve
System.
Money like water seeks
its
level.
own
If; rates in this
those at¬
country are lower than
abroad
tainable
sound
for
loans,
where
will go to those countries
it can be loaned at higher
rates.
This in turn will
money
cause
an
dividend
10
yield
hence.
years
surd
would
the
'60s
ab¬
seems
from
seem
this
that
the
lush
the
'50s.
cannot
repeat
performance of
market
The
This
1.5%
the face of it.
on
It
less than
of
over-optimism
generated
who wrestled
us
good stocks to good shortterm _bonds and
present ipQome
increased in many instances.
(10)
the
with the problems in the late '20s
know that good times do not last
forever.
If
J.
D.
(rising
no
and
economic
one
trend
lines
top
level
plained
leadership
price
that
level
a
called
was
higher
for
age)
be moved
nerable
demand
on
out
of
country. This would leave
this
with
us
gold backing for our currency.
At the present time, approximate¬
ly $11 billion of gold is necessary
no
to back
our
aver¬
vul¬
a
position—or at least one
that has proved vulnerable in the
past.
A highly regarded young
investment
counselor
recently
told
10
ent law.
earnings
places the market in
that
me
to
expect
under pres¬
currency
Industrial
we
good
see
times
can
again
never
stocks
sell
at
earnings—theryardstick
(5) The inflation spiral ;-both 1 which has stood the test of time.
here and in many of the
Price earnings
ratios of 55 for
large
countries of Europe is now level¬
International
Business
Machines
and
has
it would
been
geared
to
a
rising price level.
(6) There has been
gradually
its
to
tremen¬
a
debt
for Poloroid
disturb
at
;
dous increase in
personal
this country since World
to
75
reach
until
proximately $500 billion.
Instal¬
ment
buying which is nothing
more than
substituting future for
which is
24
present
stocks
on
In
demand has increased tre¬
mendously the demands for goods.
Our industry in turn has
geared
itself to meet this *
inflated de¬
mand. What if this
demand is no
longer present? Industry must re¬
least, yet
1971
rate
of
for
its
Poloroid
price
IBM
growth
do
to
of 215.
.in
the
-A
lot
meantime
the
ready
doing this.
Since
However,
great
rise
of
have
we
had
periods
during this 63
Why not correct for
period.
them
also?
In
other
ideal
as
The
a
is
(11)
any
tration.
much
panies
the
settlement
of
stocks
reduction
blue
all
in
in
sent
demption at asset value.
the
not
short
or
mon
stocks
must
be
case
shares
term
from
thrown
of
cash
or
pur¬
funds
of
less
market.
redemption
panicky,
chips
of
selling.
blue
in
declinew and
is
Our
economy
is
local.
If
credit
a
is
bad
situation
little;- doubt
there has
been
over
invest¬
in
in
In
those
the
stocks
The
64
new
as
that
as
artifically
cre¬
indicated in Nos.
2, 5) and by individuals
during
me past
decade.
tinue
This cannot
indefinitely.
(7)
We
have
market
Slnce
*
ana
timngemf°
a
the
k'
•
Ibear
ch
It
year
trio1?
been
cycle
a
a bear market at this
^ow Theory has given
many followers.
fmancial
despite'
well
j
was
For 30
we
research I have
look'^0n
know
a
o
sense * and
the
a£f
best
-
few
in
The
instances
of
market
the "long
methods I
to
is
plaques,
_
t
:f
,
»
(Not Connected
also
Previous winners included
writers from the New York Herald
TribuneThe
If
weakness
the
'/
the
so,
a
n v
0
V
laeraid Young rSrancn
n
an
offer to sell
nor
a
now
at
of
solicitation of
340
Main
Street
under
.,
or
an
offer to buy
any
of these
; v:;
870,133 Shares
Affiliated With Sears Roebuck and Company)
.
($1 Par Value)
/
this
not
a
Company is offering to the holders of its Capital Stock of record at the
May 12, 1960 Rights to subscribe for shares of additional
Capital Stock, subject to the terms and conditions set forth in the Prospectus.
Transferable Warrants evidencing such Rights will expire at 3:30 P.M.,
.
.
New York
Time,
on
Stock pursuant to
May 31, 1960. The Underwriters
may
offer Capital
the terms and conditions set forth in the Prospectus.
depression year nor had
entered
the
war
at
the
time
published:
Some
other companies on my list were
selling at- what -would
appear
ridiculously low price earnings
ratios in inflated days like the
list
on
was
Subscription Price $4.25
per
Share
present. They included Minneapo¬
at 11
Mining
Copies of the Prospectus
11.6 and
U. S. Gypsum at 10.5 times earn¬
ings.^ History has a way of re¬
peating most unexpectedly.
dealers and in which the
lis
Honeywell
Regulator
times earnings, Minnesota
and
underwriters
Manufacturing-at
only
in
may
States
-
Bear, Stearns
%»«-} *
,
May16, 1960.
■
&
Co.
1»v
be obtained from the undersigned
in which they are qualified as
Prospectus
may
legally be distributed.
Allen
the
management of John O. McGann.
offering is made only by the Prospectus.
_•
1
WORCESTER, Mass.—Gerald M.
Young has opened a branch office
consid-
elements
Christian- Science
Monitor, Business Week and Life.
vulnerable.
Capital Stock
The
T '
,
addm§j?i,/^Special
.
a
demand for
with borrowed
of
margin
well-known
(9) Bond yields exceed stock
ever« they cannot be'
any
mathematical - yields at ,the present time. Thismust be regarded as a red dangeryears5ver a long Period of
a rpac theJDow
Theory has been signal, since |t has always led toSDitp unabiy profitable guide de-r an eventual market read justment ~
.p te its many false signal. ,> of considerable proportions in the
Prices of stocks
during the past. A shift can now be made
r
Publications in which the winning
articles appear also receive bronze
time
our
outweigh by
rerii.n'j
eai
any
to be vulnerable.
erable
strained
close of business
to
categories
are
awarded
$1,000 and a bronze plaque each,
ALL-STATE PROPERTIES INC
some
group.-
the
is
azine
re-
trickle at any time ap-
a
to
.
10 times and Trane 5.5 times. 1941
mathematical
ma?0? f0r forecasting the stock
that
{'Still have not found one '
Thp Can
relied on sufficiently,
whtnk -a!!? to° many variables
thb
lnf.luence the market (and
tJ^^bles in turn* have flue¬
nt!g weights) to make any;"
ratb
atical formula at all accunnmvvsas a
forecasting
devicei
mptk
to
bought
issue
whole has subsequently done
a
from my list—Alumi¬
Company of America was
selling at 4.7 times earnings, Food
Machinery >at> eight times, Libby
Owens Ford 7.3 times, Montgom¬
ery Ward 8 times, National Steel
8 times, National Gypsum 6 times,
Pet Milk 9 times, Pitney Bowes
market signal earlv in
according to the interpre¬
tation of
awards
num
has
year-cycle calls for
the
companies
longest
Much has
7!^ about the 10
this 10
a
history.
1949.
con¬
.
had
in
at
summary,
I
point I wish to make is that over
70% of this group of stocks were
then
(in 1941) selling on a 10
times earnings basis or less.
Take
meet
of
com¬
laciiities
to
Purpose
The stocks were, of course,
exceedingly
spending by
adminis-
economy
years.
elements
securities. The
days
series,
of
backsliders
demand
our
than
appear
This advertisement is neither
the
government, industry (to expand
ated
a
picked by hind-sight and the list
worse.
.
but
even
war—both
finally to large governdefense orders which could
pears
stock
within my
stock.
Tfnere
in
slow to
approxi¬
is
Advisory
are
ministration, and were established
in 1957 under a grant from the
Sidney S. Loeb Memorial Foundation, Inc.
arms
much to be de-
existence;
ment
not
mately 25% supported by govern¬
ment spending — Federal, state
and
Awards
dean of the School of Business Ad-
funds and
pleasant to contemplate.
(12)
J. Ackerman, Chairman
honor business and financial jourrather severely out nalists who contribute to a better
The resulting read- public
understanding of the Amer-
past 15
goods
amounting to distress
This in itself, may rein¬
the
nn
inflated
In
Achieveeconomy, geared as it is to filling ment plaqiies
hrf presented to two
war-time shortages no longer now runners-up in each category. v
conditions
force
seen
or
cold
throw
inn^hMn
Waliorf-AsforS
by the University of Conhow necticut, where Dr. Ackerman is
considerable market
a
Thus
have to be sold under
may
the
war-like
in the
quanti¬
well-known
nrespntatinn
tered
action and realignment. The cold
war in the past year has seemed
portfolio
the
balance.
call for
do
shareholders need
become
these
the
the
Chicago Graduate
Business, will be guest
justment in our economy would ican free enterprise economy,
probably be sufficiently severe to
Winners in newspaper and mag-
bonds—com¬
on
heavy
because
ties
this
Eco-
of
The Loeb
candidates
negotiated
a
very
temporarily
of
re¬
To raise
most mutual
of
sired—would
to have large reserves in
seem
cash
In
cash for
necessary
pose—and
for
the
settlement
possible and
their
shares
of
for;
dean of
the
Loeb
Awards
Board announced,
con-
parties will generate.
(15) Finally,
which
I
believed
came
definition of a growth
trench. The
lose their
makes
confidence
mutual funds have each about the
group
School
Committee
cf
It remains to be
selling from portfolios may con¬
tribute a self generating effect to
the
decline.
Furthermore, most
known
University
the
country has had great
of both
same
and
fidence in him. Businessmen have
had confidence in his Adminis-
The
Vice-Chairman
Cabinet
Stabilization
+
in
The
Wallis,
Nixon
Price
Awards
e
mutual funds. With
severe
market reaction,
it
be found that mutual funds
may
Allen
the
on
growth
of
not
was
use
today.
described
discharged, employees
ability to buy and this
Gf
series of
on
forms
term
general
it
W.
heTr M1' itHWOuld Junes
th^nn of SEllt °Ui«end near Laurence
end Jc his term
office.
J.
.
that
ZTb -LJUUU TiWdlUb
might be called an Eisenspeaker at the third annual Loeb
business boom and an
hower
words, the
Industrial Averages ought
not to be
higher? than approxi¬
mately 400 based on this trend
line study.
D.
et
mar
inflation before
year
»
1S «?• ^
nomic Growth, and
this last
business
in
25
W 2L111S tO uP6cliC
A .
T
,
.
1
At, I jOPH Aw^TYIQ
impossible to forecast.
articles for Barrons
same
for
earnings on its
price of 450 and
1941-42, I wrote
ment.
seem
times
happen
can
not
the
until
year's
10
1964
same
in
market
War II.
Personal debt has risen from
$200
billion to its present level of
ap¬
take
last
present
in
him
did
ttt
,
this
and
over
c-
we
TiliriPnDAri
lines because allowance should be
made
for
the
postwar inflation.
-
ing off at least temporarily.
Our
industry and our stock market
almost
is
more
last
by
respected
Eisenhower as
of Mr,
-1
a
years.
by the market
deem
Every dollar
gold reserves could theo¬
retically (though not probably)
our
un-
imposed
any
-m*
have
operating costs.
(14) The sound and
President
than
justified by-these trend
Jones
approxi¬
correct
possibly
depression than
experienced in the
severe
to
will be discounted
would be
of
reserves
to
not
practices
to
some
did
in
circumstances
for
the
individual who wishes to
protect
himself against
as
is necessary for efficient
operation. The final settlement adds
in
mately $19 billion.
gold
It
favorable
40%
present
yet
balance
on
mid 1955 and has remained above
this level since.
It has been ex¬
by
point
pears
have
we
the labor unions.
In many
instances it does not permit as much
management control of business
very definite and consistent trend
line of growth in the stock mar¬
ket price level since 1897."
The
market broke out above the bull
market
not
business.
top
obtains a
that
to be
(13)
was
There is
economy.
.position
stocks, 60% of
(chiefly short term) apto be a logical one under
bonds
though it
approaching.
The steel wage settlement
picture and then one draws
a
line through the
tops and bot¬
toms of all the bull and bear mar¬
kets ignoring only the 1929
chip, wellportfolios.
Management is duty bound to re¬
our
amount
now
our
this
seems
Present price
earnings ratios of
stocks
(over 18 times the Dow
from
outflow
which
to
indication
reached
relatively true percent¬
age
bottom,
liquida-
investment
an
dealth
1932
The wholesale
perhaps
tive rates
1897 (the year this
average
started) on logarithmic paper
a
strength.
able to borrow except at prohibia severe blow would be
plots the curve of
industrial stock prices
one
was
to. get
rates and gold out-
money
flow will be. the indicator o^this)' tio Of
stocks i;s not recommended:
these agencies will no longer be Rather/
since
in
the '50s has led
many to think
that the golden decade
just passed
will go on and on
without inter¬
ruption. Those of
from
13
&
Company
'
i
14
durable
and
luxuries
into
neled
The Affluent 1960's Can
1970
a
.
Thursday, May 19, 1960
.
the
the
great. Two examples are
swimming pool industry and
Depression
boat industry. It is in this The Aetna Life Affiliated Com¬ Exchange. Heretofore, the stock
traded
on
spending that many fu¬ panies want to build a $5 million was
the
over-theture consumer growth industries
addition to their home offices in counter market and on the Boston
will be found,
j
Hartford
in
a
major expansion Stock Exchange. Trading on the
Boston Stock
Exchange will be
step, Aetna President Henry S.
5.
Stability —A Requirement of Beers
as
a
announced.
The addition, continued
convenience to
power
of
area
By Dr. Arthur R. Upgren,* Frederic R. Bigeloiv Professor of
Economics, Macalester College, St. Paul, Minn.
Ample warning is made in this paper that our growing affluence
Sustained Affluence
during the 1960's will be undermined as the decade draws to a close
consisting of two stories and a
of course, is a slate basement floor, would be built on
of well-being. Well-being, in the the east end of Aetna's present
economic sense., We the American building. If the plan is approved
people, committed ourselves to by local authorities,'Mr. Beers said
construction on the new addition
pursue this objective in the Con¬
stitution with the words "advance would be started in the near fu¬
astringing liquidity said to be occurring in our banking system.
an
Moreover,
plant-equipment stability
:
>
-
inventory investment rate. The author outlines the forces con¬
responsi¬
recessions; and
tributing to the ebbing of price inflation; comments on the
bility of business for post World War II economic
stockholders
in
New
*
*
England
;!;
Affluence,
plea is addressed to business to learn from our built-in
a
stabilizers the lesson of maintaining greater
and
.
Connecticut Brevities
goods, the increase in production
in these industries will indeed be
.
very
Cause
by
Chronicle
Commercial and Financial
The
(2162)
* \;
A
new
in West Hart¬
company
has
ford
entered
the
expanding
field of automation. Embree
Elec¬
tronics
Corporation, headed
by
manufacture
John M. Embree, will
This objec¬ ture. Details of the building plan computer components for the elec¬
tronic control of
machinery and
state and re¬ show it would be of the same
brought about quick and vigorous recoveries in each of the past three
state in terms of desiring an econ- Georgian Colonial design as the processes. Research and develop¬
ment for Embree Electronics Cor¬
recessions. Dr. Upgren is hopeful that the excellent prospects for
main part of the home office, a
nomy which has a rapid and stable
Hartford landmark since its com¬ poration is being performed by the
economic growth in the next five years, and the inescapable shortage
rate of economic growth.
; \
University of Virginia in its re¬
of labor, should induce business to provide a steadier rate of expanThe stability we seek is a sta¬ pletion in 1930.
* :,:asearch laboratory
*
for the engi¬
;
sion of investment.
bility of the price level, a stability
The Allied Control Company has neering sciences;- Prototype devel¬
for employment, a stability of in¬
opment and manufacture is being
before 1950 had ended, our total come, and a stability for purchas¬ opened a new plant at Wauregan
1.
Affluence in the 1960's
done
by the M. P. Engineering
A review of the past where it occupies 10,000 square
The 1960's will be very affluent: production advanced to $300 bil¬ ing power.
Corporation of Fairfield. The ini¬
lion.
The $400 billion leve) was two decades will throw light on feet of leased space in the Waure¬
In fact the decade will be the
tial product line is planned for
reached 1955 and the $500 billion what we may expect here in the gan Mills building. Allied's Con¬
most
affluent
one
the
United
June 1.
■,
necticut headquarters is in Plantslevel will be reached in 1960, the 1960s.
■'
States has ever experienced. This
present year. Thus in the past 20
The 1930's were extremely un¬ ville but the firm also operates
general welfare."
the
consumption
maintenance of personal income and
observes how the
tive
constantly
we
-
■
.
next ten iyears
will
markedly unstable plants in Glendale, California and
direction.
The New "York City. Approximately
This rate of growth will con¬ 1940's were about equally unstable 100 persons will be employed at
an
upward
direction and the new eastern Connecticut faciltinue. GNP will gross $600 billion in
!
in 1965 and $700 billion by 1970. marked heavily by the inflation lty'JrA'.:'' " V
y
>;:
sj:
Douglas Dillon, former Chairman
(A reservation about 1970 is made that was the product of war. An
...Kaman
Aircraft
Corp.,
of of the Board of Dillon, Read &
inquiry i n t o s t h e - fundamental
later. It is serious.)
causes
of that inflation is desir¬ Bloomfield, reported increases of Company and now Under Secre¬
3.
The Effects of Inflation
able.
• .V.
50% in sales and employment for tary of State, will be honored by
the
A d v e rthe year 1959; Total sales for the
We
must
emphasize that the
6,
Causes
of the Instability
of helicopter
manufacturing
com¬
tising Club of
gains from 1940 to 1945 and from
Prices, 1930-1950
'['X
r pany were $34,747,000, more than
New Jersey at
1945
to
1950
had
a
substantial
a luncheon on
Two
separate
and unrelated $13,000,000 over the previous year;
amount
of gain which was
not
forces produced
June 3 at the
the. inflation of Employment passed 3,000 and net
very real, consisting of price puf¬
dec¬
that
In
ade,
lost
we
billion of pro-
In
duction.
Douglas Dillon
downward
a
To Be Honored
■
$200
some
in
•
1930's.
doleful
stable and very
GNP every
to
people pre¬
cisely the op¬
posite of the
have added $100 billion
five years.
-
we
years
to the
be
Am ericari
the sixties, we
.
-
will
..
rise
the
above
by
Arthur R. Upgren
than
billion.
In
more
$200
1970,
prices
achieve
can
we
that
us
present "level
the
at
told
has
Eisenhower
President
fact,
a
by
for
total
national production of $750
billion. This will provide an aver¬
gross
family income of substantial¬
age
in
fact, the amount of $8,300 is often
predicted for family incomes in
ly
S8,000
than
more
year;
a
the year 1970.
2.
Production
The
March
the
to
1960's and 1970's
Total
production in the United
has
States
had
remarkable
a
march be¬
gan after the end of the deeply
depressed 1930's.
Gross national
growth.
The
upward
production at the end of the 1930's
not
was
In
quite
fact,
in
had
we
compared
figure
the last
as
decade
1939
unemployed
peak
high
as
the
before
year
9,480,000
the
12,830,000
of
In
who
to
people were only partially em¬
ployed, and we had an estimated
5,000,000 hidden unemployment on
our
farms.
1940's
off
In the first half of the
took
we
5,000,000
people
farms
and
farm output
(from 1940 to 1945).
by 42%
The
Deal
rather
war
the
cured
than
the
rose
New
Great
Depression
and its unemployment. In the six
following 1933, we reduced
unemployment by less than 25%
years
the
from
peak
The 1930's
So
figure of 1933.
all dismal.
were
economic growth
our
1930's
nil.
was
that
Gross
also
the
quite
the
then
about 12%.
lower
11%
the
1940
the
Thus
price
gain
in the
national
11
years
but
1940
it
decade
of
was
an
production
from
took
years
prices
there
real
the
to
1929
in
through
first year
recover
of
the
1929 level for the first time
again.
From 1940 the march is rapidly
upward, now occurs a very de¬
lightful even series of $100 billion
steps for each five years from
1940 to 1960.
Starting with
a gross
national .production in 1940 at the
$100 billion level, we reached the
$200 billion level in 1S44. Ti.en
first profit
The
devaluation
was
not
is
feature
been
of
the
Since
these
changes took
place
for
Essex House
compared
Hotel, New¬
1933
and
1934 when
the
is
for
promise
shall
enjoy it in
the
most
significant
rapid growth has
inability of businesses
this
ten
1939.
.Then
the
came
Second
World War.
keep pace with it. In the rise
Now
Europe became an un¬
family incomes from a level of healthy place for gold. A further
perhaps $4,130 in 1947 to $4,440 $7 billion of gold was shipped to
in 1950, $5,520 in 1955,
$6,260 in us bringing the peak figure for
1958, $6,520 in 1959, and on up¬ our gold stock to $24.7 billion.
ward to $7,200 in 1965 and to over This
represented a full sextupling
of
of
fact is the wide margin which has
been .established
above
a
"sub¬
stock of 1934.
sistence" level
helped drive interest rates down.
of
incomes.
original
our
gold
of $4,000 a year will
standard
Now
as
of
provide time
Ameri¬
incomes
rise
which
"optional-spending,"
and
"voli¬
tional-spending" income has in¬
an
It
purchasing power with
important "leverage'' effect.
has
been
growing
this
margin
subsistence
that
rapidly
income over
very
of
has
made
long distance section of
System
such
a
the
the
Eell
remarkable
"growth," industry. It is what sells
more
than
one
telephone
in
a
home and it is what sells the vari¬
ous
rainbow-hued colors.
With
excess
$7 billion
serves
monetary
reserve
to
the
reserves
of
mone¬
at
more
one
than
(above the required
re¬
of
the
the income
Citi¬
New
of
zen
Jersey,
Mr.
Dillon,
who
long
tive
ment
New
field
invest¬
banker, lives in Bedminster,
Jersey.
The
v.
in
inter¬
an
as
-
.
a
ac¬
career
national
C. Douglas Dillon
,
had
and
the
..
1959."
luncheon
Clarence
speaker will be
Randall, former
B.
Chairman of the
Steel
Company
Board
and
of Inland
Special
now
Assistant to President Eisenhower.
Among the 450 who will attend
the luncheon
ert
B.
Governor Rob¬
are:
Meyner;
growth
over
in
spending
subsistence chan¬
With
ness
this
of
reserves
5engineering
tinue
the
the
War
financed
the
AMF
man¬
personnel
operation
of
other
The
Ramsey,
E.
Hornsby Wasson, President, N.
J.
Bell
on
and
Company,
prominent New Jersey
With B. C. Christopher
(Special to The Financial Chronicle)
KANSAS
CITY,
Benson
is
now
topher
&
sewing indus¬
tries and pioneer manufacturer
Telephone
many other
business and professional leaders.
if
turer of precision machine needles
for the knitting and
been listed
Corporation;
com¬
Company,
of
Torrington, 94-year-old manufac¬
needle
the
of
Chairman
-con¬
Torrington
anti-friction
'
Worthington
the
Connecticut production and
if
C.
Board,
and
pany's research laboratory at Mill¬
stone Point, Waterford. AMF has
extraordinary rich¬
and
banking
basis
was
laid
for
of
bearings, has
the New York Stock
Co.,
Mo.—Arthur A.
C. Chris¬
with B.
Board
"Building,, members
York
Stock
of
Exchange.
of
Trade
the
New
He
was
previously v/ith H. O. Peet &
ir
a
y
expansion in the
money supply.
Huge bank credit
expansion followed our entry in
of
.
monetary
tremendous
World
The
for
amount
creased
Wollmar.
,
larger
approximately the same
figure,
the
our
margin
banking system
makes up "discretionary," in the
mid-1930's).
;
this
F.
agement
said
it
will
retain
Maxim's present management and
*•
This
According to the Aanerican Fed¬ Interest rates fell almost
of
Labor
(AFL-CIO) vanishing point. The larger
something slightly under an in¬ tary gold reserve created
living.
"
.,
engineering facilities at Green¬
monetary wich,
Springdale, and Stamford.
$8,000 in 1970, the most important
the minimum
#
"Out¬
as
standing
our
to
come
*
..
The Maxim Division of The Em-
ark,
United
States
prices hart Manufacturing Company, of .Senators < Clifford ■,P.
Case
and
price levels for all commodi¬
Hartford,.; has been sold to The Harrison A. Williams; Carrol M.
ties other
than
gold were very American
Machine
&
Foundry Shanks, President, Prudential In¬
low, the opportunity was extraor¬
Company ? with
headquarters in surance
Company;
George
F.
dinarily attractive for the rest of New York
Cty. The sale announce¬ Smith, President, Johnson &
the world to sell us gold and buy
ment was made jointly by AMF
Johnson; W. Paul Stillman, Chair¬
what they wanted.
As- a- result, Board
Chairman Morehead Pat¬ man of the Board, Mutual Benefit
our $7 billion gold stock of
early terson and Emhart President SixLife Insurance Company; Hobard
1934 advanced to $17 billion
in
in
eration
allowing for the
level,
in
in
capita
so
Businessman
above
decline
1950's.
and
of gold by
the terms of the Gold Reserve Act
force
and
we
as
Perhaps
can
a
per
growing
Rising Family Income .and the
•
$101 billion in 1940. In these
was
been
1960's.
production at prices then prevail¬
ing was $104 billion in 1929 and
there
two
large.
as
This
has
gain
affluence
ythese
unem¬
counted, many
were
those
in
■.
lation
4.
addition
marked
was
unem¬
ployed in 1933.
ployed
which
opened.
with
1940's
the
the year was <$590,000
with $513,000 for 1958.
The company recently announced
five-year periods. Since 1950, the
movement of prices has been very approved Jan. 30, 1934. This Act continuation of its expansion plans
lowered the content in gold of the which will bring total floor
space
much more moderate. From 1940
United States dollar by 41%. Low¬ in use to over 800,000 square feet.
to
1945
prices advanced
30%.
ering that content resulted in our
*
s£:
*
■'t. -.rrr, : ■■ ■
From
1945 to
1950 the
advance
stock of gold on hand at that time
was
also
30% from the higher
Superior Electric Company of
being made into many more dol¬ Bristol
1945 level. But from 1950 to 1955
plans to erect a new plant
lars, in fact 69% more.
V
which will cost an estimated $3,the advance in the price level was
Here the increase in our total
000,000. The Bristol firm, one of
only 11%, and from 1955 to 1960
the advance has been 10%.
For monetary gold stock was from $4 the state's leading manufacturers
billion of gold prior to devalua¬ of
the last year and a half, the price
electronic equipment,* has ap¬
tion to almost $7 billion for the
rise has been only 1% per annum.
plied to the Securities and Ex¬
same weight of gold after the de¬
change Commission for permission
Thus the gain in gross national
valuation. As a result of a smaller
to
offer for public
sale .150,000
production
of
$100
billion
so
weight of gold in the dollar, an shares of common stock and to
evenly in each of four recorded ounce of
gold made more dollars. offer a
private sale of $1,500,000
five-year
periods
and
as
esti¬ This
produced
the
well-known in first
mortgage bonds to raise
mated
for two future
five-year higher price for gold of $35 an
construction funds for
the
new
periods is a gain which has been ounce after devaluation
compared plant.
growing in real terms. The popu¬ to $20.67 before devaluation.
■"
*
fery due to the rising price level
present
level
of
production
a
war
II
in
very
by
1941.
We
securities
to the banks.
All told
about $109 billion of U. S. securi¬
ties were sold to the entire com¬
mercial banking system. This en¬
larged total bank deposits subject
on
CHAS.W. SCRANTON & CO.
Members New York Stock Exchange
CONNECTICUT
now
large proportion
the sale of U. S.
Continued
Primary Markefs in
page
28
New Haven
SECURITIES
New
York—REclor
Hartford—jAckson
2-9377
7-2ot»9
Teletype NH 194
Co.
Number 5952
Volume 191
.
.
The Commercial and Financial
Chronicle
.
(2163)
How to Get a Sound
Int'l
Hnfi seriou,s*y inflated a result Market in 1929,
amount
as
nf
9f dollars and pounds
The
on
S +ni"
rl^!
4'
*
\
•
eries )
'
,
■"
sound
international monetary system. Concludes such restoration will
neces¬
-
rise in the
price of gold.
.
,
77
but that
foreign
coun-
OG
oft
-
J1
+
,
-
.
"
~
"~7~ —;
price
As
of
me
*
"hriPPC
v\v»4nfrr/%v%4-i
rmrnonc"
rencies, plus
a
goods of all sort
timiil/I
vwAUnkl.r
(due
to
price), while
U
correct inter-
if
we
not
are
Per
to
Jacobsson,
I
agree
I took the position that we
witnessing J.11CJJVJJ. worldwide
Wiuicoonig
major WUI1UW1UC
val-
nomic
was
and
points.
curlow production of
its1 relatively low
the production of
wages.
If someone would have
recommended in 1924 or 1925 that
n
a
them,
We aborted
monetary
vtruii
_
_
n
commoditv
rapidly in-
a i
a
were
eco —
turning
serious
eco-
nomic readjustment which started
then —witness the fall in raw
cline
nrices
in
■*
_
and
the
international
on_ a_ very stability and a relative stability of both the dollar and the pound be creasing exerted a downward pull merely because
ThA
Cinrl
nOTr^litdrl
ho
precarious foundation. After the prices, and perhaps preventing a devalued, he would probably have on prices. While all the abnormal facts* '
end of World War II we estab- too
painful readjustment of the been considered insane.
Keynes rises in the general price level '
the
economy
and
price -• level did advocate that the pound re- were due to
lished the In-;
massive"injecTions'in lar(^
large
reached since World War II
ter national;
by Wrir.to the gold standard'at the the economy of new purchasing
seems
tem
had
over. In fact, in a
speech deliv¬
ered in March 1958, in Pittsburgh,
gen-
" —
gold
monetary
time
a
fault lay in govern- with his prophecy that the postrecognizing the fact war inflation in world markets is
r
f
obtaining
at
prices
to repeat the same mistakes.
that inflated prices and
monetary
.
of
need
we
pretation
As you know, Great Brit- means had made the international
°f '}*t, return t0 the. Sold liquidity in gold inadequate. The
during the war, and the
rise
in
prices
and
o
of
\
fS was to bor: level. The
a^-r+°a+ *an<^ extend ments not
credits to
consequent,
-
„
international monetary sys-. system,
to
-
in
cycle
trend
downwards, making the
depression the more severe.
This case proves that it is not
enough to remember historic facts,
pre-war price of gold
terms of dollars and sterling,
pre-war parity of disequilibrium between the
to^_the pound, in complete eral price level and the gold
ii|fe+ga^Gya
it.
mon5tary uation of the world's key
mrlation
CM
$4.86
a
a
+1
g-term
in
business
the
turned
to try to maintain simultan-
was
mistake and the post-war inflated
g
!
cw
of the dollar. He contends that only the restoration of the inter¬
sitate
particularly
a
payments! (3) these continuing deficits are undermining the sound¬
The
?nf decision.and of the
the
when
nb"slof inflationary credit by the eously the
banks,
asserts that the international monetary system is
national gold standard can fulfill the seven prerequisites of
to
monetary decision at
Depresflon
time the pound sterling reabout tbe devalua- turned to the gold standard. The
im^f„rndla^ was the result of great mistake after World War I
commercial
precarious foundation for three principal reasons: (1) The extensive
use of the dollar-sterling-exchange standard is a dangerous practice;
(2) because of the low production of gold, the international monetary system is based on a constant deficit of the U. S. balance of
ness
due to a
rather .than' to
was
of .gold
an.erroneous
3
fhp
Mr. Cortney
and
wlfi^h nrmitfvff
Monetary System
Cortney,* Economist and President of Coty, Inc.
By Philip
shortage
gravity
'
15
of
the
do-
trade—
following
^
.
deficYts^in Its^balance^of
other
Monetary
Fund, whose
mission was to
restore
nf
of
plies
mone¬
k
two
.
First, that
restoration
a
im-
essential/conditions:
an
end be put to
mone-•
My
rate of
a
cur-
rency,
if
and
learned
very
friend,
.
V
Jacobsson, . General
Philip Cortney
-
-1.
,
'
«•"
t.
,
'
.
.
Per
.
Manager
of
tbe I- M.; F.y. who has a thorough
readjustment
should
become knowledge of monetary problems,
necessary. Whatever useful serv- ln a remarkable speech delivered
a
has rendered, it
yet fulfilled its original
ices the I. M. F.
has not
as
mission.
That
mat
there
there
establishing
able
is
is
sound
a
bone
no
no
of
hope
ot
and
monetary sys¬
another basis than gold.
on
(2)
The
United
r^icoiKirx
mario
States,
Uo
which
Ovu0n[.n
™
S decade tht hnp-ovement^n
S^position,
th^ othS
the
.ne
reseive
other
of
of
positions
countries, has
serious
very
the
itself
other
now
That
and
of
balance
fiscal
That
domestic
policies
mone¬
the
and
,
mrtn
r
monetary,
for sound
sys-
economic
ptwu
^
•
f exP?n.sl°n of in-
.
.truw. and
'ainJ [y-(h
irann0t
nf?atlr„?
PUttl"l an^.nd t0,
and
(
cr.edlt' aPd
some
inflationary ^practices
monopolistic
spme
labor
powerful
unions,
business
Unfortunately,
the
.
Poncy
with
hi ?nceu'^an
tC-e
in
pvoc
the
aiming at
'
1
a
by
and
demand
the
of
a
stabilization
which cannot
at a11 obtainable,
alm
monetary
stab?llty of prices, but the
t«C hlstory of the - 1920's
ffnti -eS +US
a P°licy whose
hS•
zation of prices may
7- +ln inflation of money and
"i,1;' and very unsound
ppnn
rpc
r
.
r
peculation.
;
,
,.^re ls one important lesson
An
we have not yet learned,
u
abj?.°cmal rise in prices and
rin artlflcial.ly stimulated economy
ti7fnPn?arily to the huge mone_
the
g0^er,?ment debt during
war
7 banking7?ln*iatl0n-
will
or
h=7 g
latT.
Prices
dli. afterJhe war-
® as an aftermath' sooner
vt recessl0n and a fal1 in
Ca" bf- s?vere. "
^ftary "adjustment is
Proper
JlotmL
"ndThe .tafterthefnd0ftheWar
inflo+iA
7
paper-money
'
.
^ pu.rP°se is to
Je ls7iiiie hope of
the
a
st°PPage of
•
sound
.
show that
establishing
international
monetary
ovul
moon c
ihn
rinn
in
mal
~
1
t0
«4
bllll°n m 1958
—
debt), all the abnorin
prices have their
falls
m
.
F„mnp
Hllv
wac
bheanlv^
c^modities
!XnortnHreSfdidnot
raw
origin in the rapid increase of
the production of goods for civil-
menfo and
pXnprt«
light then
and I
economists
do
HiH
rrun
not
while
fall
'
Prices aia n°l tal1-
:
^Ur econon^y was propped,
a monetized
budgetary
<
up ,by
deficit of about $14 billion
not
and
it
ceeded
in
the 1920s
m
in
1958
was
the
sen-
deterioration in the monetary
situation of the United States,
ous
todav '
*
,
The Federal Reserve Board
My main reason for the predic-
J10n I made
most
t>
see
tti^„
,
thA
cpp
am' afraid
.
-
the
to live
up
to
price
length of
'
which had become obvious except
sue
-
to the blindfolded.
holding up
surprising
?
collapse
of
New
the
York
Stock
level
for
a
_
-
T
.
.,
,,
.
be expanded, thus putting
end
an
Continued
r
.
on
.
page
18
*
;
Con-
money.
Let
>
■
the best of
,
.
the meanin§ and ™P'ications of
statement by Robert Triffin,
a
Professor
at
article
yaie
University,
published
in
the
This
,
fore
Economic
the
the
of "U. S. News and World
Professor
Triffin's
V.k
■>.
an
offer
to
sell
nor a
solicitation of
an
offer
to
buy
any
of these securities.
The offering is to be made only by the Prospectus.
,
.
feuE
New
''
:
Jan¬
:V'
- ^
$600,000
Social
and
with
interview
an
•
.
in
Council of the United Nations and
in
is neither
announcement
.
issue of the British magazine
Banker"; and also some re- 77,7
marks made by Per Jacobsson be¬
editors
<
DD
Hydra-Power Corporation
Report."
statement
reads as follows: "The experiment
in convertibility launched a year
ago faces the same two problems
that contributed so much to the
early wreckage of a similar ex-
V 6Vi% Subordinated Debentures/:
due-May 15r 1970
With Common Stock Purchase Warrants
^
-
•
periment some 30 years ago—the
shortage of gold and, largely in
consequence of that shortage, the
of
reliance
undue
rencies
on
The
national
;•
at
Per
at
the
repeated before the statement he made \
Jacobsson
ECOSOC
Annual
Meeting
of
$15
per
will not be
of Inflation r
the
'
Company
per
'.
.7
entitling the holders to purchase Common Stock
$7 pet share to and including January 2,
January 2, 1965, at $12
international reserves.'
End
•
'
; ^
': ' :
.
■
■
'
The Debentures have warrants attached
at
cur¬
■
to be
completely planned
A
policy
aiming
at
stability
will
secure
economy.
otoru
interests.
come
.
except
concerned with
try
quest G for
monetary stability has
-
,nnf
contused
that, time: that
monetary means and The rise in
prices and wages due to World
War I. '
'
'
•
ability to the just mentioned
judicious formula. -'7:"77-".-'7'
'. 7
To this effect I shall analyze
.
rinternational
- t? 6 P,r°Per w,0rklng 0f
?p?no.VA ?
•
^*11
government
monetizing ®nu lyoy.j
an^fosQi
my
is
-
tem, and also
lru\\\T(*\7€>TP
count,the. considerable increase in
"The
close rela¬
a
monetary ; stability
-
the
CSfr
both the dollar and the pound be
devalued in terms of gold. With
the benefit of hindsight, I share
the view of the late Prof.. Charles
uary
is
balance of payments of a
particu¬
lar country.
7."
7
(4)
gress
an
problem
there
tionship between
tary
Pe°Ple in government and
a
of pavments.
(3)
IrnrWX/lpH
by
Per Jacobsson also said that w^f
time by an abnormal may ,bave
7
Shortage of Gold
face, in a few (.)
in 1946 before the National Bureau
The British economists, partic- expansion of inflationary credit, years time, the problem of mcipEconoinic Rcsearch reminded ' larl!
" „ ™™ed that the but in so doing it aided in pro-! lent deflation. I agree with this
us of the old pertinent formula: :"larlf' were. convinced that the
ducing the speculative boom Thc prediction. My timing of the com"Qui bene distinguit bene docet.
fall in commodity prices wlpch CORapse came when excessive pri- ln§ deflation is shorter than a few
it said in passing, this address became severe shortly after the vate debt creation could no longer (?) years probably 1961-62 be-
me
international
tem
mv
'recommended^ at
Yet despite the views of some
doctrinaires, the world has reiearned the hard way the follow- should be "pdust" reading for all
ing fundamental truths:
> students* of money-, as well as for
111
ID
to
•
exchange
such
-
one,-to my knowledge, however,
V
idollar .and the pound had been
Key Statement by Jacobsson
devalued in 1925 to take into ac-
justment : of
when'
Such
OflP
Omenta t^to
(created
power
i4 iThe in^lonafy *ffc\ct of the
Jhe speciJm remedy dollar eXchange standard,
yet permit an
orderly read¬
the
TXfnrlroKloi
No
.
and
standard
parity of $4.40 and not $4.86.
restoration,
tizing of government debt and inian consumption which follows
flationary
bank
credit
by
the
the end of big wars.
commercial
banks; second,7 that Hist
that , the 1929 depression 7 A rise in th
j
f
ld j
the price of gold be changed in' would not have been, so severe
1925 and an increase in its proterms of all currencies, and par?nd long, neither would the world duction was
ticularly the dollar. .Vvs 7: ?
P"ces have collapsed if both the to the situation, but the govern-
basis
of the inter¬
national • gold
the
on
the
workable Infornnf lAWril gold
international rfi-vlTl
standard.
stability
tary
Q
a,
than
means
1963, at $10
per
share to and including
share to and including January 2, 1967 and thereafter
share to and including May 15, 1970, the expiration date. The Warrants
separately transferable prior to January 2, 1961
may
or
such earlier date
as
the
elect.
5
Each $1,000
principal amount of Debentures has 150 Warrants attached and each $500
principal amount has 75 Warrants attached.
Fund in September 1959, that in likelihood world inflation was
in an interview with the v
an
over
editor
of
"U.
S. News and World
♦'
Price Per Unit: Par
Report," Per Jacobsson said that IV
we
have entered a new era, and
that we may, in a few years time,
have to face the problem of incipient deflation./ He also volunteered the remark that if he were •
an American he would prefer that
people abroad take more gold if it .
helps to reduce the rise in dollar
liabilities, and provided necessary steps are taken to reduce the balance
of- payments deficit of the
United States,
Professor Triffin is right in reminding uS of what happened in
the 1920's and 1930's.
But 13 it
true that the great depression, and in its wake the breakdown of the
gold standard were due to a shortage
of gold? The gold exchange
standard a practice adopted in
the 20's to economize gold, which
forced Great Britain off the gold
standard, was the consequence of
a "wrong
monetary decision *m
1925, namely the gold valuation
(100%)
(Flus accrued interest from May 15, I960)
Units
of
consist
Warrants and
Copies of the Prospectus
dealers
so
or
$1,000
Debenture
and
may
be obtained from the undersigned
or
other
brokers only in Stater in which such dealers'or brokers are
qualified to act, and in which the Prospectus
may
be legally distributed.
Aetna Securities Corporation
Roman & Johnson
May 19, I960
150
$500 Debenture and 75 Warrants.
D. Gleich Co.
.
I
SECURITY SALESMAN'S
CORNER
in
But
.
BY JOHN DUTTON
Truthfulness
recognized fact that lieves it is a good value, that the
prospects for the company's con¬
tinued growth are good, that the
ness dealings and in salesmanship
is one of the most effective vir¬ investment should give a satisfac¬
well
a
honesty- and truthfulness in busi¬
individual tory performance in line with
general market
conditions that
can use in building a growing and
satisfied
clientele of customers. prevail.
No
security
that
is
bought
This is possibly even more so in
the investment securities business should ever be placed in a lock¬
than in other lines of endeavor. box with a message written on it
that
tues
firm
any
or
Times,
People who invest are admittedly
on
unsure
ground. Many inves¬
that it should not be sold.,
tors db not have sufficient knowl->
this changing world.
The security that is an attractive
investment today may six months
change
circumstances
and
conditions,
THE MARKET
these
cases
many
people are not equipped emotion?,
ally or by experience to trade.
They want the salesman to find
them a stock they can buy today,
then hold it just a few weeks over
the six months period which en¬
in
1
want
*
**-
"
"?
%
'
.
'
'
in
stocks
'
....
'
STREETE
0
1 \
A
'
able to put oh a
was
buoyancy.
Y'Y
*
Where
Show of
run
%%%%.
•;
price-earnings ratios
50 and 60 times
the
1 for
•;Y'Y-t'Y
*
*
earnings
electronics,
General
definite
Motors at current levels sells
Going out on a limb on the part
lightening of commitments
the
security
salesman only
recent ; favorites,'
including
the
water and
creates
future problems. WHEN A SECU¬ Polaroid in the cameras and
pected 1960 results and less
There was
some
at
in
of
,
muddies
GO
WILL
RITY
DOWN
OR
UP
of the vending
some
is
the
ex¬
it boosted profit 38%
18% sales gain. Profits
when
on
an
this
year ran 11% ahead of
year's results for the first
quarter. So the company is a
proven
money-maker, but
last
various
much
without
public
11-times
about
•
than 15-times the 1959 results
machine
something that can be
his
function.
Expert
groups
of aware of this fact than that they field—or
popularity, and become oversold on some price traders do their own guessing. In¬
the fundamental analysis of in¬ objective that is to be reached by vestors expect attractively priced
You investments to be offered to them
dividual securities they may be a security if all goes well.
of
rotation
AND YOU
.
'
approxi¬ issues, notably Universal
mated by expert technicians who
Match, as well as American
from now be a candidate for a
expect a certain percentage of
"switch," and sometimes this can errors—what chance has the se¬ Photocopy, r. These are basi¬
spect to such important aspects of happen in a matter of days. It is curity salesman of guessing right cally "peace" issues and they
security investing as timing, the more important that customers are most of the time? This is not his suffered a bit at times.
edge and understanding of the
fluctuating forces in the market
that control prices. Others though
aware of their deficiencies in re¬
y
'
BY WALLACE
allowed
and, if so, they should be
to make their own bed.
v
-
emerging from results. General Motors, for
conference in instance, is available around
Paris turned stock market in¬ 25% below last year's peak
terest
definitely to defense despite the fact that it showed
a good earnings increase last
and space age items this week
and, despite some occasional year and reported a record
first quarter for this year.
war
jitters, the general list
portfolio of securities. They fair
to trade for a quick profit
a
<v4.
'
summit
the
becoming investors in some cases.
Othersk never
will be
satisfied
with
" rtf '
1
educated into
be slowly
can
\i
Thursday, May 19, 1960
tirades
The
gain and then he should tell them
to sell out at a tidy profit which
is somewhere near the top of the
move.
These individuals should
also be told the truth.
Some of
them
\
Y
capital
titles them to a long-term
is
. . .
(2164)
ence;
It
Financial Chronicle
Commercial and
The
16
Summit News Revives
nition
on
that
market recog¬
The rec¬
score.
Aircrafts
ord earnings of $1,189 billion
posted in 1955 still stands as
the largest profit ever re¬
ported by an American cor¬
poration. Giant American
depressed groups Telephone came close when it
And it built up turned in earnings of $1,113
hoping that you that are suitable for their needs
The Paris fiasco did serve,
keenly
desirous - of
REASSUR¬ are right, that all goes well, and whether it be growth, income, or
however, to bring the airANCE. This places a very obvious that you will make a profit if you possibly
both. Beyond that no
When the odds honest security salesman should crafts back to some popular¬
responsibility upon the security decide to sell.
favor
such
a
conclusion
pur¬ be
salesman.
required to go.
ity after they had been one
considering
investments,
as
buy
are
a
security
,
will
There
when
be
appreciation prospects for
this
spelled
cents,
in
out
in
or
dollars
"points."
fectly obvious that
realize
tions with his educated
or
any
sensible person should know this,
stock buyers will continually at¬
tempt to obtain
unanswerable
offer
guess,
have
the
peo¬
is
reassurance
company
such and such
sales¬
A
in
about which
should have
substantial growth in
he
for a
the answer
exercise
should
he
not
some
a
earnings for
reasons.
This isn't
had
been
the
in
unsuccessful
the
in
vestments
what
he
years;
he
wants
to hear.
He
and
he
he doesn't want to wait two years
lot.
If
and
an
had
says
inclined
was
he
hadn't
to
worry
involved
been
The
YEAR.
salesman who has customers who
This
ships, I don't think he would have
owned any of the subject stock.
with
cooperate
them
him
that he likes
limb.
explains
-
:
*
to
to
the stock, be¬
individual
actually
trade, he doesn't desire
vestment.
There
is
a
vast
wants
an
close
in¬
differ-
employment, and through
friendships
and
relation¬
Obviously
could
there
that
do
explained
that
ters
DO YOU KNOW?
taining
help him. I
carefully to him
very
"WHEN TO SELL STOCKS"
U.
COBLEIGH
Certainly
sitting
had
know wben to tell and cask in
you
Thousands
falter
when
of
it
investors
comes
to
who
we
TOUR market profits ?
buy stocks
selltaf. Too
prices and their market profits melt
Accordingly,
on
many
soundly—even shrewdly—
stand by helplessly while
eager
a
would
the
be
taken
be
in
mind.
buying
stock
the
to read this timely new
forth the 7 basic guides
They
could
outlines which stocks should be sold firsL
could not do
so.
without
facts
For
protecting capital and intelligent defense of market profits, this
reading. Its cost of $1, may save thousands!
Your
own
dollar. You
copy
will be rushed
may use
immediately on receipt of
the order form below if yon desire.
you
one
25
PARK
B.
DANA
PLACE, NEW YORK
enclose
the
his
to
who
than
no
the
question
a
I
guess
would
be
also
opinion
at
all.
times
are
the
There
best
when
they
to
way
When
can
handle
your
rely
was
also
/ /
bit of
a
Kindly
rush
mj
'•
■
eopj
of "WHEN
TO
SELL
STOCKS"
to:
such
customers
upon
your
presented
City
and
establish
a
lationship
profitable
them
to
the
a
the
customer
will
business re¬
should 'be' more
proper
that
than
lous that is
in
both
way,
something nebu¬
obviously based upon
hunches and guesses.
■.
% *
%.*
.
*
•
>
Singer's military research
subsidiary is * H R B - Singer,
laggard
in recent
months Inc., and the parent company
since
the
long steel strike has been stepping up its ex¬
ended, and some of the chem¬ penditures on research, and
icals
was
including du Pont which development to where they
run
higher easily were quadrupled last year
able to
when
there
demand
was
the
over
around.
earlier.
*
level
of
four
years
These outlays are
*
special products
Diehl Mfg., a
they are importantly involved wholly owned subsidiary
in space
age and missile work, making electric, electronic
including some that have been and optical devices.- It adds
somewhat neglected in pre¬
up to important progress in
over
Electronics
did
well
since
recent
Amphenol-Borg.
as
HRB,
division
vious electronic flurries such
i
*
-• *
{* i
...J
•,
•"
*
*
~
*
A
r
^
*
,,
r
H
;
.
'
t
Followers of the electronics
been
early
in
a
the
a
and
in diversifying
standing at the
the list as the world's
years
while
still
'
head of
largest "sewing
bit
perturbed maker.
year
when a terest
m
It also has
in
achine
70% in¬
a
pulp and paper
slowdown in incoming orders company" which has been in
was
reported by most of the operation for more than two
companies as
defense con¬ years. Its financial position is
tracts were scaled down. And
strong. Yet, despite the ac¬
a
,
most of the items in this
sec¬
tion
because of their growth
factor' have been
selling at
name;
diversification
and
lished
sue
would make them vulnerable
count
anything
but
e s
Auto shares weren't
prom¬
in their defense
guise
t a b-
earnings record, the is¬
a good dis¬
is available at
from
at around
its
book
value,
stated
$68 per share.
*
inent
■
continued which is conservatively
Autos Still Neglected
its
and
knowledged
price-earnings multiples that
growth in orders and profits.
straight-forward
solidly established
in that field.
so
listen carefully to your advice. If
this
advice is soundly
acquired
salesman
Street
familiar to
name
back and is
v:,Y
to
and
Name
Another
play
in the steels that have been
had
was
tell
To make
■'
*
*
"/•/
-
it
complete
candor is the only answer to such
questions and an "I don't know"
know
7, N. Y.
and
career.'
circle
classic bear market
a
honesty and truthfulness, they will
SI.
.
several
busy
If he couldn't find out
situations.
CO.
Gentlemen:
I
inner
answers
There
to
the
customer?
is
WILLIAM
in
worse
he
one
ten,
one
any
not
booklet is must
the
were
below
was
monograph—"WHEN TO SELL STOCKS." It sets
for selling stocks and clearly defines the 9
proven market signals that
warn
when stocks are too high and sale should be considered. It also
'
confi¬
particularly
volatile market
What
the
the
small companies, using
do it, the price level of
to
a
that
one
into
'
up
stock
had
away. "
think investors will be
security salesman
busy telephone with
no
at
clients
to know about it.
dence of management,
of a company such as
ARTHUR GRAY, JR.
Do
days when
per¬
in
stock
last person
would
AND
the
other mat¬
bullish
be
question
in the mill, that I would be
were
the
would
to
nothing I
was
would
that if any mergers, or
By DK. IRA
An Old Timer Diversifies
signal under the Dow Theory.
a
curity
a
sidered
hard
worked
by his
out on
but%>uldn't
eclipse GM's earlier shewing.
the v averages ' • were * > making
in¬
his
certainly not three or five. He
wants
to
make
a
profit THIS
go
the year were
on
part over
large
It is not necessary to state a spe¬
cific market objective for a se¬
or
billion last year
adds, the two best turnovers
to buy stock in a very
speculative situation wherein he
was a large stockholder. The man
rights
■
opinion, or a
but he should label it so.
can
man
question.
to
with
up
security of the more
could
for years.
a
that
good
or
area
wishes
they
long are they going to have
years
to this
an answer
some
and
inevitable
is
come
times when
are
friend who asks him an trading interest to the best
For
imponderable question. The other level in three months.
this
day I had a client ask me whether whatever technical solace it
expect
made
be
There
salesman
generations. is Singer
to wait for a profit. This happens explained
that this company moderate progress. - The only
Mfg.- which is preparing to
very often.
A stock is offered to owned the controlling interest in other four million session in
switch later in the year from
an investor or speculator and the
the firm for which he
worked.
the
American
Stock
Ex¬
company
seems
to
have
good His immediate employer had a early March/was a day of
decline, the high change to the New York Stock
longer term growth prospects. The large interest too but would not moderate
security is attractive on an invest¬ advise him. He was in a very turnover then stemming
Exchange. It has been a com¬
ment basis. The prospective pur¬ serious quandary. He was at an age
mostly from; the previous paratively mundane item even
chaser asks how long he will have in life where he could not afford
to wait to get his profit.
He is to take a large loss, he" was al¬ day's action when the closing though it, too, turned to elec¬
told that within the next several ready involved rather heavily, he averages gave what was com tronics work a
couple of years
unedu¬
Although
to
this
like
how
ques¬
can
the market himself.
this
know
Another
he right"* only a
portion of the time. Some of his
guesses may be wrong; many of
them
will
be very
far off the
mark.
If
anyone; knew
these
things he wouldn't be selling se¬
curities; he would be cornering
guess
to
business.
salesman ple
any
is
This
made.
be
approach
a
It is per¬
continually honors such
cated
who
mistakes
and
is
This
request.
common
very
who
tors
a com¬
He would like to have
stock.
honest
security
investing and experienced inves¬
to give him an opinion of the
man
mon
the
sales¬
a
should
chases
instances
many
customer will ask
a
J*
*
...
.
Another familiar name
with
a
somewhat
different
earnings pattern is American
and, so far, have been unable Visqo^e. Viscose is the second
to get back in investor favor
largest maker of cellophane,
despite the good first quarter a major rayon producer and
Number 5952
Volume 191
.
.
The Commercial
.
and Financial Chronicle
(2165)
close
attention
to
its
own
of Avisum, a plastic
profit margins. Last year it
maker and Chemstrand, sec¬
was
able to boost
ond largest nylon producer.
earnings
sharply, in part because of a
The stock has been in a down¬
23% increase in sales and in
trend mostly because of the
part because a preferred issue
latter holding. Chemstrand
had been
disposed of the year
and du Pont competed in a
r0
owner
nylon tire cord,
nrice war on
before, after which
Viscose to-cut its own jump
forcing
came
Delafield Expands
of the
the profit
to 69%.
to
changes in investment decisions. The
notes, for example, that investors have not
For this
as
of Delafield
"
year's first quarter, profit
In view of the recent
shooting
again boosted by 32 % over down of
one of our
spies, there is
the
comparable period last
earnings.
r1VwG1 int?resiTjnPossibility
w seemed
to be bottoming year on a sales gain of 20%; of World War III. I therefore am
so
the
company is now an repeating in this column the first
out and offers a yield of
four
paragraphs of my outlook
established profit-maker. The
around 6% on a dividend that
tor
19o0.
market has
paid scant heed
doesn't seem to be in any
Mv Reference tn Rii^ia
to the favorable
news, the is¬
jeopardy. It was c o v e r e d
Four Months^Ago
T:
sue
holding in only a little
twice over last year and pro¬
.
jections indicate that this will
again be the case this year.
better
than
three
a
thefdrug section, War¬
ner-Lambert is an issue which
has come to life again with a
breakout to a new high at a
time when Congressional at¬
tention to drug companies has
thrown something of a pall
over the group. Warner-Lam¬
bert's better known products
Listerine ? and
it
Bromo-
much
of
They
presented
are
the
hauled
far
drug firms so
to
Washington,
far
Warner-Lambert is
more
specialties a n d
and only a small
in
engaged
cosmetics
portion of its business is in
the
areas
ington has been exploring.
The
stock
worker
split
for
was
years,
a
wonder¬
a
before a
calmed it
year ago
until this week
down
when
it showed
move
signs of starting to
again.
With Courts & Co.
now
thriving operation that is
well
known
United-
is
Greenfield Corp.
Co., 25 Broad
Mr. Walsh
formerly in the stock trading
department of the New York of¬
was
fice of Dean Witter & Co.
&
Co., 120 Broadway, New
York
City,
York
Stock
will
%
members
admit
on
June
1
Roger l L.
and
Albert
E.
Danks
to
general partnership. On the same
date, Selma Barysh will become
a limited partner.
two
United
years
Drill
&
of
ago
and
Tool
Greenfield Tap & Die, both
well-known names to ma-
Guaranty
under
United-Greenfield
has been
thriving both by the rela¬
tively high standing of over¬
all
industrial activity and by
of
Company, Inc., 77 Franklin Street,
members of the Boston Stock Ex¬
He was formerly
Edgar D. Andrews & Co.
change.
announcement is neither
offer
to
an offer to sell nor a solicitation of
buy these securities. The offer is made only
by the
NEW ISSUE
'
F
..May 9, 1960
I
am
York Corporation)
(a New
Common
Stock
(Par Value $.25 Per Share)
$1.00 Per Share
Topies of the Offering Circular
in
be obtained from the undersigned
any State in which the undersigned may legally offer these
shares in compliance tvith the securities law of such State.
may
Fennekohl & Company
Incorporated
may
other
/
so
continued
em-
Defense expenditures,
however, will be directed to missiies
and
many
New
York
above
rockets,
I have
as
times before in
he
counselling f i r m | of
Co., prior to which
with Moody's
associated
was
Investment Service and Standard
& Poor's.
Delafield
&
Delafield,
whose
investment advisory service is
of
the
oldest
one
and
national
and
international
basis.
said
Pittsburgh Bond
•'
Club Outing
f
my
Holdings
.
Certainly
reduc-
a
in
0rder
sets
well
United
readers
should
distributed
States,
concentrated
jg
re-
in
the
over
place
of
those
will
decline
apparent
about our
when
the
which
,
plane. The
portant
does
not
Let's Not
sians
are
Paragraph
Outlook, ".
of
afraid
.
.
No.
door"
into
walk
the
if Russia
Over
Russia's
"back
should attempt
war
a
this
whether I
from our State
but
visa
Department
is very
will
get
There
is
a
no
_;
Joins McDonald Evans
KANSAS
CITY,
has
O'Banion
Mo. —Mary
Midwest
and
Pacific
Coast
Stock
Exchanges. Miss O'Banion
formerly with E. F. Hutton &
Company and Burke & McDonald.
was
~
_
Robert C. Mur-
is now associated with Har-
ray
Tulloch
He
&
t Investors
Co.,
50
formerly
was
State
corporation,
*L.
\ir
Westheimer
has
•
and
(Special to The Financial Chronicle)
BOSTON, Mass.—Lawrence White
joined
the
staff
of
Proctor,
Cook
With Westheimer
with
Joins Proctor, Cook & Co.
with
Company,
&
Co.,
10
Post
Office
Square, members of the New York
and Boston Stock Exchanges. Mr.
White
mer,
was
formerly with Schir-
Atherton & ,Co. and Spencer
Trask
&
Co.
This announcement is neither
an offer to sell nor a solicitation of
of these securities. The offer
made only by the Prospectus.
offer to buy
is
an
any
May 6,1960
NEW ISSUE
75,000 Shares
CIRCUITRONICS, INC.
Class A Common Stock
(par value $.01
per
immediate
share)
Price $4.00 per
correspondence
Upon
Our Election in
November
Copies of the Prospectus
may
Share
be obtained only in such
be legally offered.
States where the securities may
>
»
v-
2605 Connecticut Ave. N. W.
Lloyd, Miller & Co.
Washington, D. C.
Columbia 5-4740
week
connected
become
uncertain.
with Hong Kong
by air mail.
The postmaster in
Hong Kong tells me that any mail
addressed to Peiping he forwards
to Canton. As to what happens to
it after that, he does not know.
of the past
will not help the Republithe
events
j
J.
with McDonald, Evans & Co., 1009
Baltimore
Avenue, members of
the
/
;
(Special to The Financial Chronicle)
trouble in getting to
Hong Kong, as I am in
Surely
/:
on
year;
V
L.
Southeastern
.
Chinese
the West. Thus,
it is very important that we re¬
view our relations with China.
This
Chinese situation is the
reason
I
am
anxious
to
visit
shooting
John
the Rus¬
China."
against the other.
that
feels
^
Harding TuIIoch
BOSTON, Mass.
F-
—
9
long pull, China is no more
friendly to the Russians than she
is 'to the United States, but she
playing one
.
,
Kanawha Hotel Building.
Forget China
the
Russia
,
,
in-
or
in
said
I
in
nAf>niA1.T
street.
humble judgment.
in my
Company,
Building.
■ VV'
in
Russians, yet it CHARLESTON, W. Va.—Harry A.
hasten World Wallace has become associated
to the
delay
III,
towns
.
propaganda point of view, is im-
War
and
With
sue-
also demonstrated.
the
event, from
a
land
demand.
ding
such heights is
But
,
used
of the parachute from
value.
terl0r states should be ln Sreater
shoot-
Russia
.
in
cities
small
C.
N.
rities
real estate in large cities should
our
high fighting can occur and
possible aim and speed
use
With United Securities
Certain
un-
the
missile
fallout.
of
down
ing took place. This demonstrates
the
against
about the
sorry
earth
more
.
tection
McNear & Co.
V"
Thomas is now with United Secu¬
hear
„
W.
invest- GREENSBORO,
your
counselor.
We
,
ciated with C.
for many years.
large cities. This
immediately with
ment
t0
in
matter which should be taken
a
up
.
shooting
the
East 85th St.
28, New York
vestment
Lionel D. Edie
column, PITTSBURGH, Pa. — On June 17
rather than to airplanes.
The Bond Club of Pittsburgh will
wv
hold its Annual Spring Outing at
Investors Will Review Their
the Longue Vue Club.
that he will
.a<^T*0?. *°+
in Washington
Effect
201 -205
& Dela¬
companies
Yorkville Bank Building
,
it.
accompany
hand,
assured
Payment.
the
policy upon its first announcement, it should be recognized that
this airplane was about ten miles
China
Price
very
"lying"
would
Automation Systems, Inc.
the
pro-
fPy: **}
is
150,000 Shares
one
civil
of my 1960
Offering Circular. :"v/, /,
extensive
experience,
actively engaged in defense work
destroyed.
power.,
fortunate
with
an
the
should be
Effect Upon the Next Few Months!
cessful
is now with F. L. Putnam &
or
about
his
Although
gan
will
'irAfs'-defense, bomb shelters, and
hold
As
This
it
want
thiS
of
BOSTON, Mass. —James J. Re¬
On
living in Russia. I forecast he
also
(Special to The Financial Chronicle)
present
with
familiar
fallout which
does
after
others
had
advisory
come to Delafield
largest among
member firms, recently moved to
a decline in European travel this
new
offices at
45
Wall
Street;
summer and it cannot be helpful
to business. It will make people Featuring an estate planning ap¬
think more about the possibility proach, the investment advisory
0f World War III and the serious facilities are being expanded on a
apartment houses. Mr. K
to shoot down our
operators, but not to the
general public.
this
the
Moscow.
in armanents
how
With F. L. Putnam
of
My
situation
Of course, the event
may cause
will not
war
the
man¬
will field from the economic and in¬
defense situation. Mr. Kennedy
ln forei^
have money to raise the standard
Building
Life
and
Furthermore, he wants
tion
direction of Gilbert G.
Savings
Roberts, t
chine
■
the
of
ttr
This
is
investment
having
days
help Symington, Johnson,
10 years;
but just
country is ready for
visit to
not
Alexander
Wohlge¬
Strong, Sidney
a
convinced
am
recent
new
of the New
Exchange,
that such
within
does
Admit Partners
1960.
30
that
World War
Russia
in
next
determine.
talks.
u
-
hunch
1960 and
„r
no
the
Nixon
Demo-
of
affect the
probably
situation
in
election
as
Advisory
it
has
been
an¬
by Edward C. Delafield,
nounced
senior partner.
Mr. Pitkin has
they will
crats,
Delafield
Department,
yet considered the
the
or
&
the Investment
Stanley C. Herzog
(3) Airplane warfare with the view their stocks and bonds at
dropping of bombs is a thing of this time. I feel that as
yet readers Stanley C. Herzog, who had been
the
with
past.
We
are
turning
to have not taken the possibility of associated
Seasongood
&
rocketry with pinpoint precision. World War III
seriously. Recent Mayer, Cincinnati, for 14 years,
Our
passed away May 8, at the age of
expensive
air
bases
may
events,
however,
should
cause
gradually be vacated.
careful
investors
to
make
im- 74, while in Tokyo on the first
(4) Moscow is Mr. K's "pride portant switches in their
leg of a round-the-world tour.
holdings,
and joy." It is a beautiful city
Prior to joining
Seasongood &
Investors will seek the stocks of
with broad streets and thousands
companies which have their as- Mayer in 1946, he had been asso¬
of
Ernst & Co. to
It is rated
as about the
largest maker of
Combined Inv. Branch
metal
tools
for
cutting,
threading, etc. The present MONTGOMERY, Ala.—Combined
Investing Company, Inc. has
company is the result of a opened a branch office in the
merger
between
neither
I
my
ket securities trading.
Ernst
it.
■
asso¬
Street, New York City, where he
charge of general mar¬
Leslie
not
V
Berlin
-ii?'
States
mean
come
will be in
muth,
A
1S
John F.Walsh
ciated with Courts &
more
peace
(2) There will be
not
become
the
=
started
Walsh has
his
will be just the same
Wash¬
which
into
Therefore
only.]
F.
no
continue
United
John
Unlike
will
of the
•"
Seltzer.
Mr.
ultimatums; President Eisenhower
those
as
NOTHINGmake
WILL HAPK will
PEN.
[The views expressed in this article
do not
necessarily at any time coin¬
cide with those of the "Chronicle''
author
Miirk my firf*
happen to
1Sx?fS~
pS'
as
just back
am
Twr
five points.
as
I
as
twLht°SC°W aw
didn't
even move over an area
In
are
point
-
range this year while for the
full year of
1959,
Interesting Drug Stock
(1) Naturally
cans,
How
of
ager
publicist
possibility of World War III seriously.
tire cord and
double pinch on its
Lately the stock
giving a
.
Roy B. Pitkin has joined the firm
incident, Mr. Babson discusses the effect
heightening of events ranging from election prospects of vari-
candidates
ous
Advisory Services
By Roger W. Babson
.
.
In commenting on the U-2
prices on rayon
An
17
18
How to Get
Forgotten Man, The Saver Is-
Finally Cominglnto His Own
Deltown
Co.
lncorporaieu
Incorporated
Mav
nn
Mass.
Inc.
Foods,
_
CR^ker°&
G. Becker &
Offered --A.
Stock
By Sherwin C. Badger,* Financial Vice-Presidentf New England
Mutual Life Insurance Company, Boston,
Chronicle
Commercial and Financial
The
(2166)
auu
and Associate
115,-
.
.
Thursday, May 19,
^
15
™
ContinUed from r\nne
page
15
.
.
^ ^ not ghare Per JacobsI do not share Per
^
^
cause
i960
Sound
a
Int'l Monetary
•
^
_
offered
rmhiiplv
17
.
System
scale, the policies of which
could
influence or disturb the
economic
^
cvu«umic
cii + iiofirwn r»f
nVi unrl nil
v
_
Inc.
000 shares of Deltown Foods,
A two-fold
1„
prediction of (a) good business sustained more or less
results from
Milk
....
the
in
trouble spots
manv
y
world, such
riCt KZTn, ^h.
the
■
South
a
Af-
coming summ
coming summ.t
certainties of
safest
the
skepticism
way
diminished and
the
in
V£twd
solid
more
Con ine., is, t
"
The
—United States there has been con-
reasons
many
for
here
are
there
knows
c o m p
risks
essors and
ab
they
tJend
since
havg
of the
t
War, without
careful planning,
^
of
precari-
is
arise.
erous
StateYoutlook
ments.
for
than
yields
are
A;
sounu
^/■-
mv».-
established
#
eral
.;Cremi_Rlch»)
j" "
•
sev¬
m
Restored Confidence
years.
A1
n
4
This may seem
There" are
mi
-vuof
two chief rpaenne for
reasons for
4,,,^.
thing
at
to
w
the stock mar¬
has
ket
international
sh""'» c- B.dt.,
uncer-
tail I iy
tainty llCX^y utt l*. expressed in many
has been
,„,v
,h»
quarters'as to the business outbusiness out—
"
look.
./V
.
the
last
end a
of
exuberantly optimistic
casts were published about
was likely
to take place in
The only logical deduction
forecasts
such
host
year
that
was
forewhat
1960.
from
accompanied
further outburst of inflation
that,
these
developments
a
and
would
later
or
sooner
—£
inevitably,
be followed by painful corrections.
*
—
would
uphold
but
all
sound
international monetary
system,
wb
+
+he
arp
th^Vild-up
tne Duiia up
w°£abl We
u a
»t
.
11v
ff
vv**^
—-
thoughtful economists in Washington and elsewhere believe is likely toextend
at least through 1960 and could
more
that
that
• dict
•
t
need
thp
the
in
•
of
fact
intense
restraint,
that
or
the
Inflation
„
Era End ng
the
of
one
greatest
n,
come
come
to
to
an
an
^ned
♦He
in
him
the
What
has
three
past
^It^.nhPliPvable
irnr»nrtant
hapyears
the
0.1, policies .and
VU i
js n0^ a|one because
«f
V
orthodox
policies. They have not
to
use
monetary
restraint
to curb price rises and
dangerous booms.
Second, the major currencies of
lhr
grounds
the
are
&
•
Co.,
stock
25
cents),
at
$1
per
sh^re as a speculation
the net proceeds, $50,000.will
be used for machinery and
real-
equip-
^
lose
f Automation systems,
anequipment;
nearly $20 billion that loieigne
s
desjgnj
in the United
Tttte uSted Stat^ ?«ring_services for
States.
.
m
In the United States
few
our
is
nothing
°
;
even a
year
people were concerned
very large losses of gold
and the growing imbalance of our
not
believe wnat Europeans
were
News
rfttfaiHood
ities
are
now
not
JOVbbVJ.
holders.
for
news
iiV
As
U
U
investment
command
Hutton
&
gomery
now
Street.
Company,
goes
on
He
Man-
-
with
E.
Moht-
160
was
F.
formerly
cannot
pecially if
;
Li„c
Qfaff
JoinS Hu§hes ^ta"
is
...
a
-
.
-
,
even
we
wh0
be
measured,
ular
further inflation is inevitable
should
-
undeveloped nations
prove
Capital funds
are
what
we
in the
B.b.rt
company
pointed
out
in
at long iast comlng lnto hlg
which
Britain
has
N«w York and Midwest Stock
,■
Ex-
formerly with
Co., and Smith,
was
Qck:riTier Atherton AAA*
»3Cnirmer, mnenon /\aas
(Special to the financial chronicle)
BOSTON,
Mass. — G. Sterling
Grumman, Richard J. Laulor and
B. Rowley, Jr., have bewith
Schirmer,
Atherton & Co., 50 Congress St
come
feeding
associated
as
Grumman
T.pp
was
the
Hi^ginson
formerly
Boston
senior
office
Cornoratinn.
it
did
in
"""
LVmpntg
an^.
of
with
fiscal
~~"T
-
stahlp currpnpies
stable pnrrpnpip<;
prefer that
people abroad
gold rather than con-
""what" i=*
the
wlT"n>Tt"ef"
thia
has
re-
meTs'ProfessorTriffhi
cXd
cently
attention to the
dangers implicit in a world monetary system depending so heavily
0n
national
national
the
nav-
issound
We
currencies
as
inter-
balance of
imP^y sound and
mnvincf
"mnvi'n^
frpplv
^LprnL^
»eeds-
n
essentially m-
"
ar.eK,Put fo^ard'"0r
responsiMe positions foi
1lh
conduct of
our monetary afIS Proposmg the only known
whjfaoi.1 Me to satisfy the above
djeo^ho .UWgjng
more
nf
>Posslble by
,1°^gut.erm1 movement?
S"KKj2TliS
P„
?hat
nnlirips
U1J
sta"a "
5
^
1931.
concern regarding the dollar
o
international,
companied by
gold
a
standard, acrise in the price
or gold in terms of all currencies
(provided, to repeat once more,
is'put to the monetization
?' government debt and private
'"flationary credits).
an end
I
doubt
that
there
are
many
responsible and competent monetary experts who advocate any-
reserves.
Furthermore, thing else than gold as the basis
continuing deficiency in of
our
international
monetary
additions of gold and
foreign ex- system. Be it said in passing, the
change to monetary reserves, once conditions necessary to the propel
u- s- Payments are restored to working of a gold standard sysbalance.
He
proposes
to
meet tem are the same as those neceshe
sees
a
these two difficulties
by convert-
ing
the
International
into
World
Central Bank,
holding dethat can be used as reProf. Triffin himself ad-
posits
serves.
the
equivalent
would
of
stop inflation,
A Gross Inconsistency
a
endow
lending capacity
which, if improperly used,
might
impart a strong
inflationary bias
tn thn
«/nrM
sary to
Monetary
Fund
5?ei"bers °f ,'he „Ne® York a"d mits that his plan
Boston Stock
Exchanges.
Mr. the Fund with a
analyst for
specula ion
to
build up foreign bank
balances in the United States.
(special to the Fhmjtcm chronicle)
&
and
^^""1
to
tinue
CHICAGO, Ill.-Charles L.Kim-
He
monetarv
Large scale conversion of
the foreign dollar liabilities into
.
With Blunt LlilS
■
relearn
halanrp
^n^withoS deceits
States.
would
Aife our
insurance companies deal in. Charles
As
now
device,
ary
for
banks^ Thisris^the should also remember^that in the
standard, SJ^\dh:m the,
the dollar
exchange
compelled
get off the gold
standard in 1931, and which has
largely contributed to the gravity
and depth of the Great Depression, It is a dangerous inflation-
-
.
'
are
frantically trying to imtheir standards of living.
the
the
sh^uld
exchange
whole structure
.
es-
look at the require-
rather
take
temporary flue-
aood
good rate of return.
return
gold
in
is
This
(?) We
nrereauisite
gold may at any time topple the
Walston & Co., inc.
our
interest rates, the fact
the foreign deposits
crease
DENVER, Colo.-Lois L. Hughes The
be-
income. While doubt-
ments of the
own
becoming less and less popto say in this
country
banks
-
ings accounts),
both in Europe and in the United
I
us
it
of payments deficits has been
in the last 10 years to in-
ance
used
Great
with York & Co.
The world-wide demand for White, Weld
caPital is insatiable and so large Barney & Co.
positive and
is
-
the
standard,
JJ/VAAVJ
going to be still better news
cause
it is going to increase
less there will be
is
.3 $- Jf M "» !»» * CM
VV»*
time
Delis
(special to The financial Chronicle)
TKtese' reM-. our AnnuM Report Bfter approxioniv the subject fate'Z a quarteL° 3 Century the
bSt of Msiti^e for|°"e" man, the saver,_ rs now
action
It
commerciai
United States
for
famous
FRANCISCO, Calif.
P.
Savers
Zi£c!
m th. lil.
VU
for
«?HnnSnf th^doUaT
Jrf
»S?1 Sn
remedial
^The
not be allowed to make long term
loans over and above" their savabove their
loans over
sav-
dis— ;
(4) Adequate international re
quieted by the present interna- serves of a
universally accepted
tional
monetary
system?
It
Js currency, and sufficient yearly
based essentially on a yearly
bajr addjR0ns of such currency to the
ance of payments deficit of the ex£sting reserves,
being
help
we
'
uel
changes.
•
^
^
can
American! banks.
(Special to the financial chronicle)
SAN
of determination to meet it is the
introduction of the compact car.
Good
engi-
tn
oi
r
.
How
or
longer toy with foreign
Qne vigible evidence
we can no
and
ex-
^ F.frnnp and Tanan
!Lrt If nhpnnmpnali
p e
:v^y problems. witn unmau^cfe;Y jears
able
manufactur- American
.
Now With E. F. Hutton
-
-
tools and
specialized
lng flrms
sound
and our interest rates competifjveiy attractive will foreigners
keep funds here in preference to
Ali
and
(3)
development
w
Drosoeritv
drasti-
cally we may be co
oe confronted in a
2e_
very few yeais wit
tion, which means no further
monetization of government debt
or of Private inflationary credit.
tools and equipment; (2) ficient supplies of monetary gold,
sales> distribution and servicing the greatest part of the U S bal- "
Z
rid S h
baB has become associated with
Third' Western EuroDe has
catetaf TherefoIe
Blunt Ellis & Simmons, 111
t^ FMrnnlan roal arid ahte anJ i/ poini caDitans vall Monroe Street, members ofWest
he ahte to
the
Th^Growing
nd
Th^ simnt systems,
o
reason tnat we cannot afford to
cannot attora
vertible
rommunUv and Euratom to
mone_
of $1 to $2 billio ,
(5) The monetary arrangements
simple reason that at the to be made
should have in mind
present,'price of gold the tota
^be probability of
incipient reincrease in monetary gold stock
cessi0n and dov/nward trend of
that can be expected from new
prices
overhead, sales expenses, and ex- gold production and Russian gold
(6) 'We should accept the ecopansion. The business of the cor-fr. sales is only about $700 million
nomjc truth that we cannot have
poration can be divided into three,,a year. This is less than 1-5% oi
a^. ^.be same time full
employment,
separate categories: (J) Research, current world reserves of gold
design, development engineering and foreign exchange. Worse yet, constantly rising wages (particularly jn thfi higMy mechanized
and manufacturing of automation in order to
supplement the insuf
industries
eniovinff increases in
V
more
•a*
ittv cot nations in
with
*—****%,
ment;
$30,000
for
engineering
jties of our international position, costs;
and $27,500 as working
jpQr the first time in many, many
capital for administration, plant
Amp0rtant
W
hesitated
1
City, on
offered 150,000
of these
timism about the dollar> The
world
V
am
York
governmental
actions,
however,
that tIiere are gr0unds for op-
ad-
ba.e «-l .w» i™
ago
——
central banks,
^ That an end be put to jnfla,
nresent
P
conicu
can
tary system is anything
If we do not overhaul
V
First
ppnnomicaliv
tanced1'countries^^ o?
snort
monetarye^
n1.nxTi*«
*
that our internat
view
Inc., of New
M^ay 5 publicly
petitive interest rates rather than
shares of Autoresort to expedient devices? ••'.*. mationSystems,
Inc.
common
p
with
i
Fennekohl
com-
■
had
had
'
r
Per"JaacTbsson head of thl Inter- wlthdrawlng thera ln gold"
^tional Monetary Fund publicly
Similarly, in the field of trade
^tated his beherthat the'p^st-wa? there is growing realization that
era
era
n
OtOCK UIIGiGQ
Treasury
Only if the dollar remains
x
•
i-
would offer its securities at
vestments
nitely-
^
a
fn*
an
and
„r«ent
our
willing to shut
situation,
IllC., COmmOll
—
political opposition - the Federal
Reserve would continue monetary
indefi-
less
or
.„
inflahonarv
inflationary
T so™nd
ouna
liquidity is
present needs
needs
(1) A s t a b 1 e currency which
a growing free world
arowing ncc wu*~
has international acceotancp
^
anct
at least for a few more the confidence of the people
(2) That,
^
•
(2) "That an end be put to the
an end he nut tr
for
oi
of
the obvious dangers 1
#
which
business
is ,good
Recently,
economy
reauirement?
of
inteimationai
those
those
not
LOIIld/LlOIl Ojb.j
veto 0f spenaing measlo
ures? who would have dared pre-
most of the more
«
and
it
the
a
^nts^S
AnfAmnfiAn Quo
.
Post-war
ctnolr-
-TJLU
Pres-
one
■»
be sustained
noiiind
_
So far this year there are no
years the
United States i's now
signs of such a boom. There are .forced to submit to the stern disfew, if any, signs of over-confi- £ipline of international trade and
dence, excessive speculation, un- finance.
duly large inventory acumulations
or rising prices. Whst we arc wit^
riessing
offering
of
lriienicitiuxicix
adequate
this
of
the
tne
tnat
,™al™!L
••
have
were
we
entering a period of boom which
would probably be -
by
eeds
...
example, who a year ago
dared predict that a
supposedly spendthrift Congress
and
Over
-
would
consid-
erable
The
by
,.-
reserves, and
me to
meet
to
seem
prerequisites
it. For
been
weak
when
weiu
market
Z do«e ttSK rfSs^lua^e1
say
time when
a
been
the
the
^{j'V'to^rtain s55fo"~stocK fccu
^omy al *ea"
curious
a
have
in
and advertising.
unw
usage
the Dollar
„
of
of
The plan does
not
the danger
inherent
of national
currencies
oori
^nfi?Tenft
resources
resources
it may meet any
contingency that
extraordinary
Qther
international
wg
the
that
so
does not
beginning
^ Vat^the
p
proc-
distributors
the
at
asserted
increase
to
Fund
-vas
Precarious
I
_hf^w^nn^cxSt^in', th^ fonner
chief economist of the I. m. f.,
proposes another scheme aiming
to increase the
dQ away
-n tbe use
willing to a»su
are
Slt™^°£° ^rnstein a A^oufntries-
would
pian-Less Monetary System
of the my
milk
than I do
more
*
years
a n y is one
independent
Jargest
60
than
more
J?3f
}abllv
correct, as he certm y
gtate of mdnd of the men in
g0vernment and Congress a*ld
-
establfshed
(.)
timing—a few
may prove
jng primarily in the New
JerkNew jersey metropolitan are a.
Through one of its subsidiaries it
of the dollar has no-
u
TMldd.^t_
dependent milk company °Pera
.
to protect
one's savings is to buy common
stocks or other equities, foreign
that
as
gether with its subsidiaries, an
,
.,
In spite ofthe
_
known
Cream
&
or
'
.
formerly
and foresees
insatiable, world-wide demand for capital.
_
p
TnrorDOFoods,- Inc
Inccirp
New York in■1932
in
rated
World War II inflationary era is coming to
notes the restored confidence in the dollar;
end;
an
r
'
e
lose more gold
to
Deltown
by those pessimistically inclined. Mr. Badger agrees with Per Jacobsson's belief that the post
Inc.)
(par $1) at $13,87
analysis of various indices said to be overlooked
an
to increase
our foreign dollar liabilities.
I adthat
mit, however, inai Jacobsson's
•
Co
Cream
(b) increased investment income as time goes on
indefinitely; and
son's opinion that we can afford
&
Milk
Mi^iptnwn
However
—
and
the
is another
this
strange phenomenon
individuals who are
—
the
same
advocating
adoption of dangerous, inflationary plans, based on paper
money, contend that a rise in the
price of gold in terms of all cur-
Number 5952
Volume 191
.
.
.
The Commercial and Financial
Chronicle
(2167)
of
goaHbf a sound, workable
will absorb a substantial
the gold accretion as international monetary system.expressed in terms of currencies
t their
new par values in gold, ,^£Ikad.dress by Mr- Cortney before the
1960
tnndard
amount of
>
Pacific
?, hich
increase
(the figure
will result from an
X,the
price of gold
mentioned for the new price
gold is $70 an ounce.)
Then
$
erals
Northwest
Conference,
Metals
Portland,
and
Min¬
tional
All-State Rights
Offered Holders
future operations.*
All-State Properties
its
(Special to The Financial
Chronicle)
should be
executive
Park,
All-State Properties Inc, is offeringing to holders of its capital
Hayden, Stone Adds
working^capital for
present
With G. H. Walker
and
Ore.
part of the gold windfall
used to repay as much CHICAGO, 111.—Eugene J. Chespossible of the government row, Jr., has been added to the
staff of Hayden, Stone &
Co., 141
bonds presently held by the Fedanother
19
the
Long
conducts
business
stock rights to
subscribe for 870,133, additional shares of capital
stock at the
subscription price of
$4.25 per share on the basis of one
share for each two shares held of
a
offices
in
in
the
real
estate
Office
of
Partner
of
land
pany, 8224
construc¬
G.
announced
on
New
York,
Florida, Maryland and Kentucky.
The company also plans to
engage
in
CLAYTON, Mo.—Roy W. Jordan,
Resident
emphasis
States
Floral
1
(Special to The Financial Chronicle)
with
York,
development and home
tion
-
New
Island,
general
with
Inc.,
lund
has
H.
of
the
Walker
Clayton
&
Com¬
Forsyth Boulevard, has
that
Brian
become
a
W. BergRegistered
Representative with the firm.
;Mr. Berglund
formerly
was
as-,
commercial
construction, in¬ sociated with Edward D. Jones &
Banks. We should West Jackson Boulevard. He was record on May 12, 1960.
Subscrip¬ cluding
shopping
centers
and Company in St. Louis and prior
also keep in mind that the end
previously with Hornblower & tion rights will expire at 3:30 p.m.,
apartment buildings, .as part of its to that was in the Shipping Serv¬
of inflation and
the liquidation Weeks.
New York
Time, on Tuesday, May development activities.
ice business.
of the dollar-sterling
exchange
31,1960.
<*
•"
Upon completion of the current
V
standard will at first have a de¬
Fred Herman Opens
^ Combined Inv. Office
Bear, Stearns & Co., and Allen financing, outstanding capitaliza¬
flationary effect on the economy
and on prices. Therefore, even if HICKSVILLE, N. Y.—Fred Her¬ & Company will underwrite the tion of the company and its con¬
ALLENTOWN, Pa.—Combined In¬
we were to admit
that a rise in man is conducting a securities offering.
solidated subsidiaries will consist vesting Company, Inc. has opened
the price of gold has mild infla¬
business from offices at 37 Field
Net proceeds from the
financing of $14,201,688 of sundry debt and a. branch office at 950 Walnut
tionary implications,
there is a
Avenue under the firm name of will be used
by the company to 2,608,066 shares of capital stock, Street under the management of
considerable difference between
inflation by paper money (which Fred Herman Company.
reduce bank loans, and as addi¬ $1 par value.
^\
George Restum.
/
:
Reserve
pral
.
.
...
,
,
.
arbitrary and limitless) and the
is
potential of inflation which may
rise in the price of
gold. I would also like to express
my conviction that a return to the
result from a
international gold standard with¬
out a rise in the
price of gold
would prove socially
unaccept¬
able, and would prove unwork¬
able.
the
depreciation of
1939, the National
Discussing
since
dollar
City Bank in its "Monthly Letter"
December 1951 makes the
dated
following pertinent comments,
they
true today as
as
then:
were
Good Money and Bad
Gold
.
.
record
value
has
had
dtenturies
over
the
as
(a vital function
best
store of
a
of
money
which many economists nowadays
forget). Paper money has been
good when issued by banks which
have
been
tion
to
into
under
gold
holder.
legal obliga¬
convertibility.
option of the
a
maintain
at
.
.
the
Paper money directly
.
issued by National Treasuries has
the worst record, though money
be
can
by
just as bad if it is put out
bank of issue which is free
a
from the necessity of
maintaining
convertibility and-bonds to
a profligate govern¬
for cheap financing. Most of
gold
the wishes of
ment
the worthless currencies issued in
foreign countries during and after
the
war bore the
stamp of a cor¬
rupted central bank of issue."
Another
made
by
increase
that
objection
in
whenever
be
made
no
price
of
raises
a
expedient.
is
the
similar
which
economists
some
all
of
crystal-clear
way of
an
gold
may
is
occur
finds
government
First
is
to
it
it
should
that
there
stopping inflation if
the governments of the
main trad¬
countries
ing
have not the will
the determination to
stop it.
and
Second,
based
with
on
monetary
government
governments
systems
inflate
can
the
paper,
arbi¬
trarily and without any limits.
Third, the present level of prices
is
not
the
result
lationship with
of
the
normal
a
re¬
production of
gold, but the outcome of
huge monetization
ernment debt to finance
world¬
a
wide
a
of
what's
gov¬
big
an
hour worth?
war.
uYe as
kac* n°t used government
i
debt
monetary
Price
level
reached
the
gold
much
is
the
the
reserves,
would,
present
not
.
have
heights
production
In
and
would
be
more
than any in our
1W1
d^termination
miiation
as
an
answer
s l
can.
ave
no
On
this
one
but
question
point
the
is
and
not
ofl"
increases
our
every
wheels and
By activating the
leisure
demand
that
...
make
every
that
endanger
we
shall
not
and sacrifice
our
the
and oil... heat, power,
petrochemicals that mean ever wider
I
TRANSMISSION. COMPANY
1
choose to
•
♦
HOUSTON, TEXAS
human
unwise plans, which will not
possible
by-products
hour more enjoyable.
our
stake.
reedom by
adopting imaginative
make
active in
inflation
realize that
at
and more low cost,,
non-
economists who
men. is
y
phase of gas and oil, will supply an
From natural gas
as
more
increasing share of the fuel and
industrial machine, energy
both production and
and people. Our growing
man-saving energy. Tennessee Gas,
and oil, makes
very complex plans have for¬
°Pe
Ven
difference.
pistons
should
choice
supplied by natural gas
drudgery... speeds, and spurs
of goods
nation will
extraordinary inflationary
gotten or don't
freedom
u
the
well
as
you
between
freedom. Most
and
an end to
life. You
of
inflation
mflation,
Propose
to put
way
doubt:
tween
dnd
a
most of it
the flow
worth
history. Fuel energy,
main
trading countries have the
wisdom, the courage, the will and
frees labor of
hour is always 60
minutes/Today's hour, however, is
higher.
The great
unanswered question
whether the governments of the
terms of time an
reaching
rw/SIONS.
DIVISIONS,
Tennessee Gas
Pipeline Company • Tennessee Gas and Oil Company • Tennessee 0,1 Re .mng Company
Gas Transmission Company • East Tennessee Natural Gas Company
Tennessee Life Insurance Company • AFFILIATE, Pelro-Tex Chemical Corporation
SUBSIDIARIES- Midwestern
service to man,
20
Ending the Ceiling Rate to
has probably cost
of one
year on average
much
as
the past
1-year bills during
new
one-quarter
as
than if fixed price
had been issued. But
percent more
Solve Withdrawal Problems
certificates
hopeful that the quarterly
are
we
bills will be¬
in the
auction of the 1-year
Continued from page
9
Many of the large lending institu¬
in this country are mutual
tions
this is particularly
in nature, and
those that supply a large
true* of
portion of the funds in the mort¬
gage market. In the insurance in¬
dustry, mutual companies account
for approximately two-thirds of
the assets; improved earnings re¬
flecting higher interest rates are
promptly reflected in increased
dividends to policyholders. More¬
mutual savings banks and
savings and loan associations—
also mutual institutions — have
over,
savers
Thus,
the
of
interest
rates
securities only when
are
relatively low.
ket long-term
interest
rates
The proponents
of these first three
their
that
maintain
"reforms"
inauguration would probably per¬
bonds at
mit the Treasury to sell
than
rates
interest
as
now
a
*
J.■ •'
believes that just
The Treasury
the
is true. If,
reverse
ple,
for exam¬
discontinued our periodic
with advisory com¬
we
consultations
mittees—a
thaf'
has
started
was
incidentally,
practice,
Secretary
by
Morgenthau in 1942—we would be
foregoing the opportunity of ob¬
taining
firsthand
and
expert
passed on to the saver.
Although commercial banks are
not mutual institutions, it is im¬
been
information
to understand that their
earnings would tend to
fall rather than rise if the ceiling
is removed. This is because the
portant
Government
the
on
securities market. Our only alter¬
current
native, therefore, would be to
price our securities more liberally
—to offer somewhat higher inter¬
preponderance of commercial
vast
signification of
a
the intent of the Treasury to mar¬
necessary.
as
substantial portion
a
in
rise
provisions; and
result, the re¬
moval of the ceiling would not be
by commercial banks on savings
accounts have also risen consider¬
ably.
public auction; issuance
with relatively early call
prevail and,
period, and rates paid
the postwar
at
of bonds
during
risen
have
rates
interest
to
rates
dividend
rities
lower
sharply stepped up their interest
and
bankers, and others that common¬
ly
advise
the ! Treasury
with
respect
to
financings;
sale of
intermediate- and long-term secu¬
est rates than otherwise—in order
bank loans and investments are of
relatively short maturity; for ex¬
certain that
make
to
a
particular
did not fail. This void
financing
ample, the average bank loan is
estimated to mature in about 2
of information could not be filled
and the Government securi¬
by increasing the Treasury's debt
management staff; the type of in¬
years
ties
have
hold
banks
an
average
formation that
maturity of only 3% years. Both
logic
and
experience
indicate
clearly that a principal effect of
the interest rate ceiling is to force
short-term interest rat$s to higher
provided by individuals who op¬
erate
daily in the Government
market. By consulting
with these committees, the Treas¬
and first¬
the attitudes of
the thousands of potential buyers
ury
Treasury, must
the
since
obtain from the
securities
levels than would otherwise pre¬
vail,
we
advisory committees can only be
obtains
accurate
arbitrarily confine its financing to
the less than five-year maturity
hand
As short-term rates rise,
including rates on bank loans and
come
securities,
earnings of banks also
short-term Government
the current
<
expand. But if the Treasury could
prudently spread its borrowing
over a wider maturity range, pres¬
sure on
short-term rates would be
on
nique will result in an interest cost
more
closely in line with fixed-
the
of individuals
or
less
continuous
basis.
We also
interest.
advice: the final decision is made
bankers
case.
Commercial
fully aware that the
are
existence of the ceiling improves
their
current earnings;
second
A
made
•
,
neverthe¬
*
•
argument sometimes
against removal of the in¬
rate ceiling is that, in so
terest
doing, Congress would in effect be
relinquishing its historic right to
determine the general terms of
long-term bonds issued by the
Treasury.
I
determine
To
issues
is
general terms of
thing, but to
lock the Treasury firmly into the
new
short-term
one
market
is
another.
Rather than determining the gen¬
in
engage
intensive
solely by the responsible Treasury
officials.
Questions Auction Technique
Extension
Similarly,
it
is
our
judgement
that extension of the auction tech¬
nique
securities
to
other
than
Treasury bills in the near future
would result in higher — rather
than lower—interest rates <>n Gov¬
ernment securities. We would like
to make greater use of the auction
technique, * becausev it simplifies
issues,
our pricing problems with respect
Congress, in failing to remove the to
new issues, and we have made
ceiling, is in effect flatly prohibit¬
considerable progress in this di¬
ing any significant debt-lengthen¬
rection in the past 18 months by
ing through sale of long-term is¬
sues.
The Treasury is responsible introducing the new 6-month and
for the management of our $290 1-year Treasury bills. In fact, we
have during this period auctioned
billion public debt; that is pre¬
more new issues of Treasury se¬
cisely where the responsibility
curities than at any time in the
should rest.
But by insisting on
retention of the interest rate ceil¬ past.
eral
terms
of
new
bond
But the fact is that the auction
ing, the Congress is denying the
Treasury the essential tools for technique is not widely under¬
sound, noninflationary debt man¬ stood among the investors most
in
agement. If the responsibility is interested
acquiring longerto
rest
with
the
Treasury, suffi¬
authority should be vested
in Treasury officials to meet that
responsibility.
cient
,
Defends
Periodic
According to
Consultations
third argument,
thfe * interest • rate ceiling
should
indeed be removed, but
only if
the Treasury first agrees to in¬
stituting some so-called "reforms"
in
its
tions.
debt
Such
abolition
of
commercial
a
management opera¬
"reforms"
include
the
committees
bankers,
of
investment
in
that,
if the ceil¬
will occur in the future
in this session
ing is not removed
of Congress.
particular argument
this
When
last summer,
made
first
we
movements
quite
are
able. We have
no
unpredict¬
way of
knowing
which direction interest rates
will
move
in the future,
simply be¬
cause
we
cannot
accurately
the
dict
outcome
of
pre¬
the
millions
which, in a
actually determine
of individual decisions
free
economy,
interest rates.
Interest
rates may
the
doing,
so
public interest, it is highly de¬
as many of our new
sirable to sell
long-term
directly to true
bonds
long-term investors as is practic¬
able, and that preferential allot¬
ments should be used for this pur¬
But in
pose.
in
ulation
tions
tends
of the
taken
than
-
auction, especially
an
strong market in which spec¬
a
by
up
large por¬
occur,
issues
is
rather
speculators
even
initial interest costs to the Treas¬
An
ury.
investor
will
be
willing
to purchase a new 25-year Treas¬
bond, callable, say in 5 years,
only if the initial interest rate is
ury
sufficiently
high to warrant his
taking the risk of an early call.
Still, we realize that call features,
if properly constructed, may save
interest costs for the Government
the long run. It is primarily
over
for
re-
cently offered Treasury bond—the
25-year,
4^%
issue
sold
last
month
included
—
years
several
—
initial
security
continue to
years
the
of
not affected. We shall
call features in the
use
future when
appropriate. But
we
do not believe that the public in¬
terest
would
be
served
if
the
Treasury
statute
forced,
were
or
by
either
statement
a
of
by
in¬
tention, to place call features
all bonds offered
on
in the future.
Although the suggestion that the
Treasury market long-term bonds
only when interest rates are low
appears, on the surface, to have
considerable merit, it is important
to understand that this suggestion
is tantamount to
recommending
that the Treasury ignore the state
of the economy in its debt man¬
agement decisions. This is because
long-term
fall
to
interest
their
rates
lowest
levels
business recessions.
sold
ury
term
large
bonds
of
If
usually
during
the Treas¬
amounts
of
during the
riods, it would
long-
such
absorbing long-term funds that
would
otherwise
nance
local
be
used
homebuilding,
business
to
fi¬
capital
State
and
projects,
government
and
expenditures.
did
anticipate the impact
not
the mortgage
market and home¬
building of the necessity of crowd¬
ing almost all Treasury financing
of the past year to within the 5year range. But the case of the
so-called
"Magic 5s" is now a
matter of history. Last
October,
when these securities were issued,
the Treasury had no choice but to
obtain as much of the, $4 billion
in cash needed at that time by
issuing securities of 4 to 5 years'
maturity. If
had
and
had not done
we
crowded
the
entire
so,
$4
billion into the 1-year range, pres¬
sures
on
have
the money market would
intolerable.
almost
become
Moreover, market quotations on
outstanding Treasury issues made
investors
would
in
the
have
to
amount
carry
offered,
interest
an
of 5%.
coupon
if
be
most
Congress
unfortunate
to
were
ad¬
Congress
led
January
again
once
to the type
congestion that
market
severe
next
convenes
of
oc¬
curred last autumn.
The problem of the interest rate
ceiling is not
a short-run, transi¬
tory problem, nor should it be ap¬
proached on a partisan basis. The
ceiling, if not removed,
can
tinue
to
manage¬
ment
through
obstruct
debt
con¬
administra¬
many
tions in the future. In the interest
sound
of
debt
management
which
means
in the
—the
4V4%
interest
should
and
be
rate
ceiling
removed
soon
as
*An
—
public interest
permanently
possible.
as
address
by Mr. Walker before th&
Mortgage Bankers Association of Amer¬
ica, New York City, May 2, 1960.
offering received wide pub¬
licity throughout the country; as a
result, more than 100,000 individ¬
uals purchased $778 million of the
securities.
Much
savings
savings
of
in
accounts
the
which
mutual
were
forced
were
—
and
particu¬
savings
apparently
fected
from
associations.
institutions—and
larly
money
banks
loan
and
These
this
withdrawals
represented
banks,
most
to
af¬
their commitments to acquire new
real
estate mortgages,
and
understandably adopted a
cautious
attitude
they
more
Minimization
of
interest
rates,
therefore, cannot be accepted as
the overriding goal of
Treasury
Federal
Banks
issue
000
of
of
Intermediate
May
on
17
offered
Fiscal
nine-month
have
desire
no
amounts of
new
to
sell
large
marketable Treas¬
deben¬
through John T. Knox,
Agent, and a nationwide
It
also
was
announced
that
$7,000,000 Sept. 1, $1,000,000 Oct.
3, $5,000,000 Nov. 1, and $3,000,000
Dec.
1960 outstanding ma¬
1,
I960.
might again
offer a similar security.
We have pointed out that we
new
group of securities dealers.
that
Treasury
a
approximately $165,500,-
4%%
turities
the
Credit
offered
tures, dated June 1, 1960 and ma¬
turing March 1, 1961. Priced at
par,
the
debentures
are
being
making new
commitments, in view of the fact
in
the
were
market
reopened and sold at
for
delivery
1,
June
,
Proceeds
will
be
from
used
000 of 4.65%
to
financing
the
refund
$118,000,debentures maturing
June 1, 1960.
securities to individuals who
purchase
them by
withdrawing
ury
funds
from
Such
savings
procedure
a
highly
our
institutions.
short-circuits
efficient
financial
mechanism in which financial in¬
stitutions
savers
provide
individual
with safe and
investments
and
in
highly liquid
turn
assume
the risk of
holding investments of
liquidity. We had much
intensify
pressures.
Nine-Month Debs.
The
reduce
rather sell our marketable bonds
to the institutions
themselves, but
recessionary
Fed. Banks Offer
The
lesser
a
policy would, of course,
impede recovery and might even
such institutions have in fact been
liquidating Government securities
during most of the postwar period.
debt management.
Bait. Bond Club
Spring Outing
BALTIMORE,
Club
Md.
—■
The
Bond
its
ofM Baltimore ,w.ill .hold
Annual Spring Outing on June 3
at the Green Spring Country Club.
Edward J. Armstrong, Stein
&
Bros.
Boyce, is Chairman of the En¬
tertainment Committee.
William
&
Reed, Robert Garrett
Sons, is President of the group.
4
.
•
,
_
.
•
.
'
"
•
■" ;s-
•'
But the hard fact is that we had
choice
no
Denies It Would
Damage,the
Mortgage Market
.
would
It
indeed
new
honesty, I must admit that
In all
we
Such
.
to be locked into the less
5-year sector of the market.
journ this session without taking
an investor's portfolio, the impact
action
to provide
the necessary
on the mortgage market—and
on flexibility for debt
management,
the capital market in
general— only to find that events
during the
would be minimized
several
months
before the
pe¬
the serious risk
run
than
..
attractiveness
was
tinue
Treasury issue for an old issue in
15-year calL it .clear that the notes issued in
that financing, to be acceptable to
a
feature.
15
exchanges would merely
of a new
such
as
involve the substitution
on
stronger, in our
judgement, that the use of rela¬
tively early call features on Treas¬
ury bonds would result in higher
case
ing issues several years in advance
maturity. Inasmuch
of their final
might be
permanent holders.
by
The
to
new
the
scores
less, the American Bankers Asso¬
ciation has strongly advocated its
removal as being in the national
otherwise be the
fact
sion, talk to
the country; in fact, these
contacts are maintained on a more
was no ,longer
any reason for re¬
for the available
moval of the ceiling. This
view in
long-term money. As
our judgement, is and was
mortgage
bankers
know quite
wholly
unwarranted. The very
decline in
well, the existence of the ceiling
interest rates earlier in the
has
actually hurt,, the mortgage
year
market and
it has hurt home¬ in contrast to widely held expec¬
tations to the contrary, is
building, and there is a real pos¬
convincl
sibility that
additional damage ing evidence that interest rate
of
supply
rely heavily on a technique known stay close to present levels, they
"advance
refunding,"
which may go up, or they may go down
Treasury would give up all con¬ as
involve
the exchange *of Unless they decline
trol over the initial allocation of would
considerably
its new issues. We believe that, in new Treasury bonds for outstand¬ from present levels, we shall con¬
the
By extending the call feature to
over
Thursday, May 19, 1960
.
mortgages
tate
was
longer
than prevails with respect to cor¬
porate issues — we believed that
all
, ,
price issues of similar maturity.
Another
important reason for pointed out,.that, even with the
not
immediately
extending the ceiling removed, we would not sell
auction method to intermediate- large amounts of new long-term
and long-term securities involves bonds for cash. Instead, we would
Moreover, it is important to
emphasize that Treasury officials,
in approaching a financing deci¬
studies and
analysis on our own. By the time
the
advisory
committees
are
called
in,
responsible Treasury
officials
have
already carefully
considered the many alternatives
involved. And in every case, all
that the Treasury obtains from the
committees, and other contacts, is
eased, and bank current earnings
would tend to be less than would
market, and that wider un¬
of the auction tech¬
money
derstanding
of Government securities.
range.
reports
routine occurrence
a
Financial Chronicle
Commercial and
The
(2168)
last
October.
And
it is
final
quite possible that, if the interest
ceiling is not removed, con¬
ditions may arise in the future
been
when
Now With Richard Buck
(Special to The Financial Chronicle)
rate
Tierwith
a bid too high in
J. Buck & Co., Statler
made against removal of the ceil¬ choice. This would be
most un¬
Office Building. He was previous¬
price (too low in terms of interest
ing, partly because this particular fortunate, but we feel
strongly that ly with
rate) is much greater on longChace, Whiteside & Winsargument is of primary interest to we can properly fulfill our re¬
term issues than on bills. Thus, we
the mortgage
sponsibilities in debt management low, Inc.
industry, and partly
feel that
term
I
have
Governments, and the chance major
the
use
sues
would
of
auctions
for
long-term
and
is¬
significantly
the initial market for
ties;
as
a
narrow
securi¬
our
result the interest costs
to the
This
Treasury would be higher.
judgement is strongly sup¬
ported
by
basis of
able, the
the
the
use
fact
best
that
on
evidence
of auctions
the
avail¬
for
the
until
argument
of loss because of
intermediate-
saved
because
the
last
that
course
of
a
has
events
has
only if
definitely proved the argument to
are
be incorrect. I
to
ments
refer to
the state¬
that have
been made from
time to time that removal of the
ceiling
the
would
mortgage
severely
and
industries, inasmuch
term securities sold
ury
damage
homebuilding
as
new
long-
by the Treas¬
would compete with real es¬
we
we
shall
again
have
no
make whatever efforts
possible,
under
existing law,
huge Government
debt
from
moving
closer
and
closer to maturity.
prevent
BOSTON,
has
nan
decline
O.
affiliated
A. M. Kidder Branch
Under Budd G. Moore
our
,
The
Mass.—John
become
Richard
OCALA,
.Co. Inc.
Fla.—A. M. Kidder &
has opened a branch
in
interest rates
earlier this year—which has
since
been reversed by market
forces of
Boulevard
demand
and
supply—apparently
convinced some people that there
Moore
office
ment
own
at
of
304 East 'Silver
under
Budd
the
G.
v
Springs
manage¬
Moore.
Mr.
formerly head of
investment firm in Ocala.
was
his
Number 5952
191
Volume
...
The Commercial and
Financial Chronicle
$2,000,528,
after
payment of
$2,167,239
Treasury
providing
for
to the U. S.
the
as
equivalent of
Federal income taxes.
Provision
was
Will Be Easier
in for a change for the
according to the head of
FNMA which will make it easier for
homebuyers to get funds during the
remainder of 1960.
Reporting a
moderate fall off in mortgages being
offered to his agency, Mr. Baughman says this
indicates mortgage
money was becoming more available
We
made for dividends
of
be paid on
$661,Treasury-held
preferred stock and
$381,443 com¬
mon
stock, leaving $957,835 for
250
are
phia, Atlanta, Chicago, Dallas
Los
Angeles,
and
a
and
fiscal agency
York City.
sales
office
in
and
office
New
Federman, Stonehill Admit
On
May 10 Louis P. Schrag belook forward to
came
a
limited partner in Fed¬
a more favorable
climate for fi¬
nancing their homes for the bal¬ erman, Stonehill & Co., 70 Pine
ance of the year.
This was the Street, New York City, members
forecast
r
made
recently
I
S t
of the New York Stock
by
in
MIAMI, Fla. —The
first
statewide
public
basis
Exchange.
Florida
Poll,
poll
to
provide
information on a
opinion
similar
to
that
of
several
well-known nationwide
polls, has
just been inaugurated by First
Research
based
Corporation, Miami-
market
and
of
economic
re¬
search
firm, it has .been announced
by Philip W. Moore, President.
U.
S.
addition
to
Corporation has,
The
Florida
research
out
Poll
Florida,
and
car¬
business
consulting assignments for lead¬
ing firms and for governmental
throughout the U. S. and
groups
in the
Caribbean!
since
area
its
establishment in Miami ten years
ago.
The firm maintains branch
offices
in
New
Orleans
and
Atlanta.
surveys, to
be
the next several
over
months, and
regularly by the
research
firm's
terviewers
trained
field
throughout
the
in¬
state
affiliate
&
Co.,
agement
that
LeJac Securities
John H.
Street,
New
York
City,
is
now
tional
h i
a
.M '
*
B a u gh
.
'
*
<
Stock
■nFl
A
cation
Institute,
^.^j|
tions,
mergers and
j. Stanley
ations
revealed
a
United States (G.A.O.) and earlier
under the firm
with
name
of LeJac Se¬
curities Company.
the
New
First
Oper¬
which
mortgage of¬
ferings of almost 10% during the
first three months of the year. Mr.
Baughman based his prediction on
steady cutback
in
offerings" which dropped about
1,000 from 10,771 valued at $140,000,000 in January, to 9,783 valued
at
$127,000,000
in
March, plus
"subsequent, encouraging reports
from
field
our
to
me
believe
change
a
offices which lead
that
for
we
the
are
better
'
in for
in
the
mortgage
market."
FNMA
re¬
ceived 10,036 offerings valued at
$130,000,000 in February.
Reflecting the tight money
ket
that
prevailed
last
v"
mar¬
Fall": and
Winter,- the report also disclosed
that
FNMA
under
its
'
*
i
Secondary1
Market Operations
acquired dur¬
ing the first three months of this
year
27,273
mortgages
$337,800,000.
Mr.
valued
at
Baughman
pointed
out that' "a considerable
number of these
purchases .were
offered to the
agency in December
and in some
as
instances,
November.''
sisted
>
of
as
far back
Purchases
con¬
-
18,926 FHA
insured
mortgages ;*
totaling$230,000,000
and 8,347
VA-guaranteed mort—
v
gages for
$107,800,000.
Like the Production of a New Car
Total pur-
S?s since the inception
of the
bivio
program in November
1954,
passed the $3 billion
mark at the
cnf of the first
quarter; with 260,roo S£rtgage.s aggregating $3,013,op8,000 acquired during that pe¬
riod.
Purchases
covered
during
properties
No sales
were
the
of
there's
quarter
located
states, the District
and Puerto
Rico.
in
43
than meets the eye!
-
made
highlight
tw
i
ome
in
the
nnor
x
,
u
ciR^
,
the
test
par¬
683
quarter
mortgage
sellers
shows
nia+i
•
^
companies
tinT,^
tinued
savings
^ and
9
4° dur*nS the quarter with
°fH^ders
holding 574,479
Mtint S? FNMA common stock on
inT £ H'*compared to 5>820 holdthp ^14'6.67' ^hares» at the end of
previous
quarter:
'
\
net
Secondary^
ng
the
earnings under its
Market Operations
quarter
amounted
to
per-
produce the "pride of the family."
people and jobs it takes to produce
men
„
materials to aid in
to select
V
;
...
designs."-
r:
k
1 <iv
'•
-*
•
.?
►
*
A-
'.
j,
t,
•
V'»~:'v***'*7-
re-
search and technical experts, searches four continents
giant refineries, research labs,
a
billion dollars already in product de-
^velopment, research, and expansion of
V
v? -•?>*•
.*>
;V
..
gas¬
full staff of
uses
>. demands of the new cars. Cities Service has spent over
"
working out advanced
a
a
engineers
and
Service has
pipeline system that can circle the globe-and a fleet
of swift super-tankers too !
•
And it takes years-ahead planning also, to meet the
work
years ahead of actual production.
Designers work with metal crafts-
5eport also showed con¬
broadening of the base of
the. unique
owned cor-
will roll off the pro--
tion in their new, high-powered cars don't realize the
for oil, maintains
insurance
Designers
gn
fiiQ7
\;
(1%).
l ® °wnership of
Dnrf+rnme?t~Privately
cars
drivers, and testing laboratories. Most of us fail to
olene. For instance, Cities
by
companies
and loan asso-
'
new
Behind their beauty and
complex network of designers, researchers,
vast number of
companies
\aniis an.d trust
rnm
a
year.
Likewise, motorists pulling into a Cities Service sta-
Asso-
followed
i
million
realize all it takes to
/
the
infi
formance is
■
FNMA program.
mortgages to the
seven
I ductioh'lines this
segments of
industry are
the
twrea,¥own of
sold
inat
More than
ago.
of the report shows
ma3°r
finance
ticipating
years
to Cities Service
Columbia
during the
quarter, in contrast to
$1,141,000
"}aae a year ago and
$37,898,000
disposed of two
more
;
vfacilities. J r
;r '1
*
Only in this "way cair America have "
what it needs for progress-more jqbs»
and
more
and better oil products.
,
York
ing Department.
decline in
"the moderate but
official
conducting his securities business
Secondary
Market
Baughman
financial
was an
with the Controller General of the
nanc*al ^*a*e~
'A
corporate
problems, formerly
sociation in
■
K
.acquisi¬
diversification.
experience in diversify
and
man,.
agency's
specializes
to
Mr. Barr, in addition to having
National
'iJ(
Inc.
problems, related
"-the- Federal
j
Exchange has been
President. Diversifi¬
Vice
President of
fiferv*
Man¬
Barr, Director of
Listing
for the
Na¬
elected
in
and
announced
Bertram
•
I
Economic
Consultants
Securities
cation
Firestone, 372 West 46th
Institute, Inc., an
Boni, Watkins, MasQn
of
Inc.,
extensive
continued
to be reported in the
newspapers,
personal interviews on other top¬
ics will be made
Barr Elected
;
addition to the political and
election
21
Diversification
and its other work in
ried
business
also subscribers to
Poll.
First Research
«
f
are
The Florida
e y
J.
,
t
number
a
firms who
Florida Poll
In
Homebuyers can
for
First Research
to
transfer to general
surplus.
The Association
maintains re¬
gional agency offices in
Philadel¬
better
(2169)
,
State
Bank¬
22
Federal Mutual Savings
Banks and Housing Goals
Continued from page
1
ability to introduce change in the
innovate, as
way we do things—to
economists
our
tion
only from
come
can
And innova¬
say.
con¬
a
stant review of the way our pres¬
institutions operate.
ent
We
must
always ask ourselves
whether our present institutions
are adequate to meet the tremen¬
dous
challenges
of
the
1960's.
More
particularly,
must ask
financial
and organization is the
can
develop to do the
whether
structure
best
we
we
present
our
job of financing, on a sound basis,
unprecedented
housing
re¬
quirements of our people. Studies
the
of
the
Senate
mittee
Housing
other
and
Subcom¬
clearly
groups
indicate that the expected flow of
able
of deposits and
agency
•
#
.
sav¬
processes
become the objec¬
changes in law
can
tive for necessary
of executive
the exercise
and for
discretion
Fur¬
by law.
granted
thermore, the public will be aided
in
fixing responsibility for the
adequacy of enabling legislation
and for the adequacy of its execu¬
tion.
Such
World
almost
or
FHA
of
of
managed institu¬
too, that a safely
tion can survive
billion,
$10,
$19
over
out
every
They
or
without Federal
in
But
insurance.
State
realize,
I
institutions.
chartered
order
could have participated to safeguard the confidence of the
more
actively than this in view public in Federal mutuals savings
of their resources and legal limi¬ banks, we should seriously con¬
tations.
sider requiring
be insured by a
that
also pleased to learn
was
that their deposits
Federal agency.
I assume savings banks also will
have used their power to
acquire FHA and VA mortgages want to consider requiring any
on
a
nationwide basis to become such institution to acquire, build
loans, (3)
the volume of borrowings permit¬
ted through the Home Loan Bank
supplier of
leading
the
far
maintain
and
up
markets.
funds in these important
adequate
re¬
first
the
form
these
since
serves
acquisition of $12 bil¬ line of defense for depositors.
lion
in Federally - underwritten
The industry will also wish to
mortgages between 1950 and 1959 think about provisions requiring
compares with less than $9 billion adequate examination
of savings
for
life
insurance
companies, a bank operations by one or more
Their
minimum
needs
in
annual
of
terms
production
goals.
Upon completion of its study of
credit problems to be
solved during the next 10 years,
Senate
Housing
Subcommit¬
sibilities
dustry
law to require that:
"At the beginning of each session
the
shall
the
Congress,
transmit
House
the
the
to
of
President
Senate
and
Representatives
a
of
housing units which should be
started during the calendar year,
2 calendar years
mission
of
the
following sub¬
report,
order
in
to be consistent with the program
the President, (2) the manner
which discretion contained in
of
in
law will be used by Federal agen¬
cies
to
achieve
this
minimum
number
of
starts, and (3) recom¬
for
changes in law
be required to enable
mendations
which
may
the achievement
of this minimum
plement
and I
this
a
bill
to im¬
recommendation
hope that it will be enacted
into law.
I
that
until
minimum
housing goab are agreed
upon by industry and by govern¬
ment, we cannot hope to achieve
volume
the
stability
of production and the
of
production
tial for the
essen¬
so
orderly growth of
our
nation.
Existing
law
gives
Federal
agencies many discretionary pow¬
ers, and these powers are used to
influence annual housing produc¬
tion. This observation applies par¬
ticularly to the Federal Housing
Administration, the Veterans Ad¬
ministration, the Federal National
Mortgage Association, the Federal
Home
Loan
Bank
System, the
System, the Pub¬
Administration, and
In this
connection, the President
appointed a Commission of
has
National
Goals.
The
Chairman of
Commission, Dr. Henry M.
Wriston, has said that housing is
one of the vital subjects to be in¬
cluded
the
in
mission.
work
dent upon this
his
set
various
The
some
the
Com¬
up
"the
Commission
series
a
of
goals
of national
areas
in
activity."
first
step then is to reach
agreement about our hous¬
ing
Renewal
Administra¬
pow¬
upon
housing-production, it would
ridiculous
to
assume
that
be
these
powers are exercised without pur¬
pose
or
plan,
mate of the
or
without
consequences.
assume, therefore, that
of
executive
agencies
esti¬
an
I must
the heads
use
their
discretionary powers with some
thought about the annual volume
of
housing production—or, if
will, with
some
you
goal in mind.
My
this
the
of
bill merely proposes that
goal be publicly stated by
President; that the propriety
the goal be debated i the Con¬
< ■;
to
y^>y
y
Federally Chartered
Favors
am
the
of
aware
would
enable
themeet
and
es,taJ?M$hment,v,df
We
mutual
have
There
savings
banks.
Federal
savings
ciations. There
and
loan
and
also
are
to
date
onty State-chartered
it
eral
it
the high
and
tem
has
savings
been
banking
rate of savings
able
to
it
ment
powers,
has
creasingly
to
encourage
the people in the 17
in which it operates.
while
place
fairly
in
it
more
broad
invest¬
elected
making it possible for locallyrun mutual savings banks to come
into being in 33 States. This could
be done by passing a law authori¬
zing the chartering of a Federal
view of
services it performs in
the
our
vital
national
economy—encouraging thrift and
supporting housing markets and
home ownership — I have won¬
dered why savings banks have not
been
formed
in
the 17 in which
[Ed.
Note:
became
states
they
On
the
now
April
18th
establishment
other
than
operate.
65th
State
Fall
from
time
your
to
time
if'there
operate."
same
opinion.
Where if has operated, the
clearly indicates
of
an
rec¬
increased
real
savings and hence
availability of mortgage
greater
funds.
As
the
nation's
oldest
thrift specialists it has
developed
ways to encourage- individuals of
moderate means to save
regularly
to
the
meet
contingency.
to
give it
and
tion
sympathetic atten¬
my
its
as
merits
are
developed
and debated
during the legislative
process. Such a system of mutual
savings banks may be one of the
tools necessary for the achieve¬
ment of
future
our
Establishing
housing goals.
Secondary
a
Market
Senate
The
Housing
Subcom¬
mittee
is seeking other tools
and
have requested comments
executive
agencies
upon
also,
we
from
other
several
the
ample,
proposals.
Federal
Bank
Board
has
ment
upon
the
establishing
for
For
Home
agreed
ex¬
Loan
to
com¬
desirability
of
secondary market
loans, and upon
a
conventional
the
desirability of increasing the
of
long-term borrowing
by member institutions.
volume
our
savings
have
thriving growth in
fi¬
and
en¬
every
I
Fed¬
a
given
features
banking that in
to
be
any
mv
savings
opinion ought
for
for
inclusion
such
in
make
thrift
a
One of the best features of
savings
mu¬
banking
is the de¬
served confidence it receives from
members
of
"deserved"
the
public.
I
say
advisedly because the
remarkable
a
rec¬
of meeting its
obligations to
depositors even during the bleak¬
est times of depression—and this
before any system of Federal
deposit insurance came into being.
Those who know the
system best
should give careful thought to iso¬
even
This
process
consider
such
management,
of
trust
on
success.
analysis
factors
lack
the part of
with the mutual
by law
for this
reasons
on
strict
other
broad
used
one
that,
power
of
er
the
wisely,
institution
institution
This
mutual
is
as
of
should
prudent
self-dealing
those
connected
a
in
banks
the
institution
sound
would
to
that
and
trus¬
am
borrowers,
and
other
members of the public.
Federal
other
not ad¬
seasonal
In
the
field
chartered banks
loan
of
and
associations,
compulsory
a
insurance
Federallysavings and
pattern
by
a.
of
Fed¬
to
comment
independent
an
termine
interest
board to de¬
rate
VA
and
policies for
and
programs,
cies of the Federal National Mort¬
gage Association. The
Housing and
Agency also is
analyzing the present rate, method
of collection, and mutuality of the
Finance !
or
other
upon
un¬
temporary lack
;
■;
a
is
practice not unknown,
to
some
institutions, is a form of
borrowing. National banks have
access to the Federal
Reserve Sys¬
tem for the purpose of
borrowing.
So do State-chartered commercial
banks that are members of the
Reserve System. Federal
savings and loan associations have
to the
Bank
System
Federal
Home Loan
for
borrowing. So
savings and
loan associations 'that
belong to
that System. To
my
knowledge,
do
State-chartered
State-chartered
mutual
banks generally have
similar
ing
central
fund
savings
access
for
to
no
borrow¬
purposes.
In
a
system
of
Federal
fund
as
a
source
for
stability in the
home
mutual
for
flow of
loans.
achieve
to
a
the day when every Ameri¬
can
live in a decent
pate
family
can
home
in
We will
and
we
*An
the
suitable
a
environment.
need
savings banks' help
humbly request it.
address
40th
ticnal
by Sen. Sparkman before
Annual
Conference
Association
the
of
Na-
Savings
Mutual
of
Banks, Washington, D. C., May 11, I960.
Chicago Analysts
Receive Slate
Hartman
funds
Such
L.
Butler, Jr., of Duff,
Clark, has been nom¬
Anderson &
for
of
President
the
In¬
Chi¬
cago
for the coming year.
He
succeeds Neil Heikes, Jr., of Com¬
vestment Analysts Society of
Mr. Butler
monwealth Edison Co.
has served
Vice-President and
as
Program ;; Chairman
during
the
past year.
Other
Federal
access
determined
year.
Subcommit¬
our
better housed America. We antici¬
inated
Warehousing of mortgages,
is
majority of
to
Used
funds.
of
available for
Insurance
agreed
thrift
a
wisely un¬
adequate supervisory
safe¬
guards,
however, this authority
can
help an institution over a
source
Deposit
has
the desirability of establish¬
not
access
tempt
embark
practices.
.
borrowing
adequate reserves and li¬ under
adequate supervisory safe¬
quidity, and friendly service to guards. I am
thinking of the need
depositors,
ing
same
by
unrestrained
that
borrow
have
used
financial institutions. I
credit
pow¬
past to the
is
it
as
to
can
thriv¬
savings bank, the savings banks, I think
you should
relationship imposed consider
providing some central
corporators
Agency
upon
The
area
practice
a
savings
extent
which
.......
Policies
tee
is
There
.
of
Federal
a
statute.
tual
to
mutual
considered
proposal
thought
some
of
Rate
The Housing and Home Finance
Housing Subcommittee next
Examines Borrowing Proposal
der
have
those
Establishing FIIA-VA Interest
Home
jure existing thrift institutions.
tees,
I still hold the
ord
a
oppor¬
ord
representa¬
Congress. I would be pleased
introduce such a proposal
purchase and marketing poli¬
ing organization. That is the
State.
permit
my remarks to
Convention of the
asked
an
associations—that
joyed
to
wasn't some way you could ex¬
pand and take in the whole coun¬
try. I wish you would, because
you have done such a tremendous
job in those areas where you do
flow
cousins—the
of
New York meeting at
Placid, New York, I said:
lating the
"I have
tives
loan
system has had
savings
recently as
as
nancial
Alaska
mutual
banks.] In fact,
October, 1958, in
proposal offers
15,
state
of
This
in¬
postwar
period
of its funds in home
In
mortgages.
sta.es
I know that
has
the
sys¬
considered by
to
the
for
vocating
mutual
the
along this
proposal of
FHA insurance premium.
after a
These and many other proposals
agency that it will not unduly in¬
will be considered by the Senate
porate the best features of
the
long been interested in
a
come
followed
have
that
Ichanging times
necessary to
seek
is
savings bank be al¬
into existence only
finding by the chartering
savings banking in the 17
States where they have operated.
It might also be possible to incor¬
achievement of the goal are available.
■_
' ■
"
believe
I
this kind should be
FHA
mutual
mutual
for
necessary
to continue their efforts
line.
the
legislation
lowed to
funds.
tools
system of Federal mutual sav¬
ings banks. I encourage the banks
a
to
apt
more
I would recommend that
asso¬
savings banks exist; V ■>
Herein, I believe, lies a method
much
the
unforeseen
Federal—
mutual
if
remedial
State-
and State-chartered credit unions.
is
with
than
State-
can
by appropriate regulation,
system
move
commercia 1-,, banks.
are
chartered
But
the
Federally-
„
Federal—and
chartered
be met
for
tunity to bring together into a
single statute the best-features of
the
years
to
how
matter
certain to arise later. If these
proposal
a
doctrine—no
thoroughly legislators think they
have foreseen every contingency
at the time they enact a law, un¬
foreseen contingencies are almost
$50
over
that
Lake
Having such discretionary
ers and such great influence
-.-C" y
total
this
well
system of mutual savings banks.
Savings Banks Association of the
Urban
in
of
objective—our housing goal.
The next step is to make certain
lic
tion.
shared
million..
action, and I share
that
hope
will
of
I congratulate the Presi¬
the
the
basic
has
extent
chartered
Federal Reserve
Housing
bama
the
Mutuals
Goals
among
believe
annual
borrowing
gress,
I
I
have introduced
bank States. I am de¬
lighted that my own State of Ala¬
assisting private in¬
strive for a better-
Commission of National
Refers to
number of starts."
I
we
respon¬
this
report,
stating,
among
other
things, (1) the minimum number
or
for
as
great
lengthy experience in the Con¬
I have learned at least one
savings
housed America.
existing
of
and
powers
the amendment
recommended
of
We should expect no less
agencies of government with
broad
mortgage
tee
appreciate, I know,
necessity to plan for the fu¬
from
Annual
Housing Goals
the
Businessmen
the
ture.
Minimum
Wants
to
net
System and the Federal Reserve
System, (4) and many other exec¬
adequate to meet the de¬
utive decisions affecting the sup¬
mands for housing and for other
little over $6 billion for savings supervisory agencies, apart from
ply and distribution of home loan
essential capital formation of the
and loan associations, and about
management, in which the public
nation.
We must prepare now, capital, should not be determined
in a vacuum.
They should be de¬ $3.5 billion for commercial banks. has confidence.
therefore, to develop ways and
termined
with
a
view
toward
Moreover, savings banks will, I
Thus, even though they are lo¬
means to see that our people do
their consequences — and with a cated only in 17 States, they have am sure, want to place adequate
not lack adequate shelter for want
view toward achieving some mini¬ made an important contribution to regulatory authority in a Govern¬
of the necessary finances.
mum volume of housing
produc¬ the economy of all 50 States. Cur¬ mental supervisory body possess¬
It seems to me that one of the
tion consistent with the need for rent estimates show that they hold ing sufficient administrative flexi¬
first
steps to be taken toward
housing and with general eco¬ about $5 billion in- mortgage loans bility to meet changing conditions
meeting our housing needs is to nomic stability.
on
they arise. From my rather
properties
located
in
non- as
these
Thursday, May 19, I960
be
scarcely
the mar¬
they
prices of
GI
and
II,
$9
went into home mortgages.
the
Federal
National
Mortgage
Association, (2) the down payment
by
schedules, interest rates, and other
terms
War
since
assets
their
in
increase
I
policies as (1)
and purchasing
keting
banks in
The interest of savings
:
/
be
define
.
in¬ continue to make new mortgage
commitments,
secure
in
the mortgage market also is well creased by following this pattern.
the
known. I must qonfess, however, I say this with full realization that knowledge that it will be able to
raise the funds needed to
that the degree Of support given under a system of State-chartered
meet
gress, in financial
and building by the industry to the housing financial institutions, some States such commitments.
have locally-supervised insurance
I know savings banks'
circles, in the press, and by the market came as a pleasant sur¬
represen¬
people.
Agreements
reached prise to me. I did not know until programs that adequately encour¬ tatives have been giving
serious
through such open and democratic recently that of the $22 billion age
confidence in local State- thought for the past few
saving in the 1960's is not likely
to
.
would savings bank at such times to
Federal its, mortgage commitments
has
grown
up.
I
expect confidence in any
mutual savings bank to
avail¬ ings
be made
nationwide basis.
a
on
eral
This
portion of their incomes.
a
know-how should
Chronicle
Commercial and'Tinancial
The
(2170)
officers
selected
were:
Lang Elliott, of
Stein Roe & Farnham; Secretary,
Vice-President,
William
&
Gray, of Harris Trust
Bank; and Treasurer,
McReynolds, of First Na¬
S.
Savings
Olin
tional Bank of Chicago.
Named
as
I-
members of the
of Governors include:
Board
William A.
Stenson, of Northern Trust Co.;
Harry L. Fuller, of Continental
Casualty Co.; Neil E. Heikes, of
Commonwealth
old
ney
Edison
Co.;
Har¬
J.
Passaneau, of Smith, Bar¬
& Co.; and Fred J. Young, of
Harris
The
Trust
&
annual
Savings Bank.
will ho
election
held June 2, 1960.
a
of
borrowing could tide a
Federal mutual
savings bank over
the period when its
deposit-with¬
drawal situation
fluctuates, either
seasonally or due to some tempo¬
rary local condition. Careful
resort
Piper, Jaffray Office
FARGO, N. Dak.—Piper, Jaffray
& Hopwood has opened a brancn
office
in
Bank
Building
the
Old
Fargo
under
agement of Rodney T.
National
man¬
Carlson.
the
Number 5952
191
Volume
.
.
The Commercial and
Financial Chronicle
.
(2171)
lSFFlWR
XJ V V kJ
AROTTT
Str^S^Tr °tff.the„S;atC J,e.clors °l T,he Bank of Virginia,
^reet Bank & Tr«st Co., Boston, Richmond, Va., was announced by
ass*
Herbert C. Moseley, President.
J7)l±J\J U X
'
'
:
;H
miKS AND BANICKRS1
P
\
^ IV.Lj.aQ
consolidation* .
«c.
t
pany, Winston-Salem, North Carolina and Guaranty Bank and Trust
Company, Greenville, North Caro-
^
^yeBeachNNewaj Bank °f Brad"
ff
f^^crea^d
Following the regular meeting
23
wichovi^Ban^an^Trust
of title of
Company, eflective May.2.
.
Homer
■
■
,
i
value $10 )
par
grmanWe^JS b^ard yTCiu
Stre^
Broad
unase
Chase iwmmamm «univ, Trust. wincer, it was announced
Manhattan Bank, xrusi Officer, it
York, died May 13 at the by William H. Moore, Chairman
age of 71.
.
■
of the Board.
Mr. Schmidlapp, since his retiret.
.
..
*
*
■
the
of
a
M
deinhia
deinhia.
gew
Horan
J', Livingston^hairman;
Mv5-7"u,u-.:rr.r„
umcwi siaii ana me election of
t* C
Tru
Pa
Pa
PR",
Samuel
.
Cashier
L£
New
Company,
advisory
advisory
trust
trust
had*
qphmidlanD"
been
Jin
,
than fifty yea s.
as
N#W
of
H
*
branch, which is to be located
hno f f
John
R.
fectiv^AprU U™ ^
Assistant
Magill,
Assistant
Liquidating agent: Mr. James R.
Sartor,
Jr.,
whose
address
is
Jr.
Vice-
Citizens
AsMtant A^.
are:
been
,r, *
*
The
Pennsylvania
"as
^
f
^
TVTnvmon
p
tional Bank, Rye, N. Y.,
Appointment of Nornmn P. Barber
tSb?
Manufacturers
New
York
'
KaS.
g
Bank
He
1934
sistant
Denartment
annointed
was
Secretarv
in
of
news
the
near
First
they
-
Ift e0mPj,ettd'
erBinec! ing facilities: ^
a
intersection
of
Marcus
was
sociated with the
Phoenix,
nr\ce of S
addftinnal R9 ft3n <Lr%
common Sto2k in the^ bask of
at
share
St.
one
previously asExchange Na-
the
n
r
an
ghare for each t
new
held.
h
rights to
additi0nal
ti0nal Bank ,°f Chicag°' ,1L
:
Phoenix
*g™1n* fubscribe andMvK
Charle® and Mannheim roads.
.
A1
Bank of W e s t
since
As-
an
the
„
of
Douglas
OI liOUgias,
offer ng
cash
building to be erected
m a new
on
„
Rank
Rank
.
Stock
are
Kh
subscribe
shades
of
for
Common
e^nced° by taa"
£a ed
*
'
able Subscription Warrants which
c h e s te r, White, Spencer H. Hackett has been Alexander Z Freeman for thirty- expire at and become void on
Plains. The proposal which is sub- appointed Vice-President of Mel- nve years a director of the Bank May 20.
3uCt
^ aPProvaI°f the banks' l0n National Bank and Trust ®J. the Commonwealth Detroit,
On March 31, the bank's capishareholders as well as the Of- Company, Pittsburgh, Pa. accord- Mich., died on May 6 at the age talization consisted of $3,141,500 of
Ilce
°t
the- Comptroller
of the ing to an announcement
by Frank of 83.
-■
Common Stock divided into 628,Currency, involves an exchange r. Denton, Vice-Chairman of the
*
*
*
300
shares
of
the par value
of
°! one share of Rye National Bank Rank. "*
The
Farmers
State
Bank
of
$5 0o ner
in
1931 and has been assigned to the
rnmntrnllePs
thdr
follows
have : tentatively ap- Pennsylvania's plans to acquire
an agreement to consoli- the Virgin Islands National Bank
thei
twQ institutions.
i.and to expand its overseas bank-
date
h
the
to
announced F.
Kelly,
sharehoIders„ the heels
proved
'
ioined
Barber
Mr
^ny,
by
ced
annou
of
letterg
that
ComDanv
t
was
President,
in
RorW
a
capital of
surplus of $25,000.
a
x"fz Ts
toUe'holders'of
dls °"®"nS » the holders of
standing shares of Common Stock"
^
•
A
has
,
.
.
Willard Chum-
is
bank
t
Vile-President Vnd"fn
Rirhinnri »
W
$50,000 and
:
in
7, ei Y^aver
is Gussie Weaver
Cashier
Banking
Mr. Ketcham
,
*
fj"
The
^
The President
came to Long Is- and Trust Company, Philadelphia, Michael
D. Marcus,
has
been
the Bankers land Trust ; 1938 from the Na. pa_ on
May 1(J ann0'unced
Trust Company in New York.
&PL named Chairmannfof the Board of
Bank
nf
Npw
York
nnintwiooi ,-,-p
t
tdthp
npw
RankRpUumoil
ill
In 1947 he was named Senior Honal CUy Bank of New Vork. pointment of Archie J. Battista as
the new Bank of Bellwood, 111.
1949
was
»
A
*
Vice-President in charge of the \ Chartered by the State of IIelevated
to
the
executive The boards of directors of Na- Bank's International Banking De- bnois, the Bank was organized on
committee
^
v - '
tional Bank of Westchester, White partment effective June 15. This Mav 13. It will have a capital of
commntee.
^
;
Plains, N. Y. and/The Rye Na-! announcement made by William $500,000. The Bank will be located
cmnati,
cinnati,
a
^arm fol^T™
aT An^
ney.t The
First
#
"First National Rank
the Trust Department.
j^Hainfeld, Jr., President of the
with
National
„ah, Ga.
J
National Bank of Cin¬
Ohio
and
the
Ohio
and
the Bankers
Ban!
Southern
Absorbed by: The Citizens
^ weJ^d Attoh^"
The newly-elected officers
on
;
r
the corner of Baltimore Pike and Robert J. Hampton, Jack W. Hallof Mineolar War Admiral Lane, will be the berg and Richard A. Westcott, each
Island Trust twenty-first office of Provident with the title of Assistant Cashier;
Company> has been elevated to Tradesmens.
..
V."
Howard E. Hallengren, Assistant
Assistant Vice-President. The anGround will soon be broken for Trust
Officer,
and
William
F.
Schindler, Assistant Secretary, in
nouncement was made by Freder,: the new building.'
R-Htanw
«_
Joined
and
P—s. Ralph J Mohan and SSSThSS^Z
S' Howard Ketcham
fo?
for ComPtroller of Long
a
rvice-President
the First
°£rsl^
Y«^b^d
®' Chalrman announced. /„■;
comcom
^official ki New York
banking official in New York
more
G„m|m Bank® New*
in
served as a ;membel
1955, had
(hi Tank's
the tanks
Mr
York,
a c
elected
were
hattan
S
and
»
^pened'by^rovident'^adesmena
?S5.=anLTr"st. Company, Ph.la-
and South-
?'
•
pIppWi
Vice-President
a
"The Augusta Citizens
^hNatraiBank"ww
with common capital stock of
1955
,
v
TU
.
*
„r
*
*
1 W' K.luge kas
t° the
,
x
J
•
bferl eJTected
of NIanu-,
Advisory Board
facturers
Street
Trust
Office
Company
it
s
stock
57th
,
for
dredths
announced
was
of
forty-two
:
shares
of
one-hun-
National
Bank
jn
Westchester stock.
Assistant
.
bLfCrace 9' *lamg?n' ,ChairmaA
°*
^ankMr.
•
n/r
Kluge,
The combined banks would have
Co-
of
June'of
and
capital and surplus in
the Held of communications
chasing
operations
two
by
television
a«^?10 °Utlet*
*
pur-
inlo
*
*
.
,,
*
state
Bank
of
,
Bank
Albany,
cation
Banking Department was given in
the May 5 issue of the "Chroniclei"
Trust Company,
New
York, was announced
Harold H. Helm, Chairman,
j;
'
John
C.
*
Na.tional
Circular,
the
plan June 14, and it
to approval by Michi-
subject
fan's- Banking Department
-
offered
the
bank's
page
with
the
New
1950.
•
York
into
Common
stock will be increased to S3 455
and
dd
,
° 6
'
15
3
William
and
i,
C
653,740
Penn
June 30.
..
"
,
560 anticipated to be received by
S hi
baak
^ sale « tbe
effective
shares of- common
value of $10 each,
stockholders'
The
- the
merger
May
-
the? "Chronicle,"
of
1950.
page
'
'
The
approval- of
given
in
the
was
issue
5
Wendeli H0lmeS Was'elected-a"
Vice-President and Treasurer and
election
of
*
*
Merl C. Kelce
was
'
-
Vice-President
Pearce,
*
lulu,
elected
a
Direc-
pany,
•
William
G.
15
Wachovia
and
Beach.
will
Charles
manadp
thp
iasaki^
Trust
Com-
Branch
Administration.
S
Total Assets DM 7,600,000,000
to
3,000
nearly 800,000. It
correspondent
pared with 14% for .the previous year), to
customers
abroad. It has
■world iri the field of
in
throughout the
foreign trade financing and
money market and securities operations.
16%
a
total of DM
increased in 1959
by
up
predominantly of
Bank increased its
the
'•
reserves
sums
of
these
considerably.
from its
liquid
DM
than
became
increasing by nearly
important industrial
freely
convertible,
8,000,000
the
head offices in
:
fields has
increase
DM
its
strengthened. The Annual General Meeting held
in Frankfurt am Main on
the 29th April decided,
from Central Bank
Due from Banks and
am
Main
enlarged its network
German
branches
848.94
Federal Republic.
were
opened between
.799.07
465.77
Cheques
221.37
Bills, Treasury Bills and
2,037.47
Fixed-Interest Bearing
LIABILITIES
534.66
353.11
355.59
234.22
237.54
2,1S0.49
1,925.13
210.68
,215.12
,100.10
4,541.27
3,915.06
Savings Accounts
1,223.49
936.26
Total
5,764.76
4,851.32
983.08
841.56
Due to
Foreign Banks
7.84
Own
46*. 16
129.00
Long-Term Funds
162.97
Acceptances
97.20
120.03
93.53
•
Debtors
1958
1959
*
(Nostro Liabilities)
516,11
Securities
"
compared with 1958 (Millions of DM)
Deposits of Banks
2,536.57
Shares and Participations
Equalisation Claims
as
Deposits
-
Medium-Term Notes
Bank has at the present time over
Long-Term Loans
Capital and Reserves
390.00
350.00
Special Reserves
228.64
206.22
7,566.02
6,516.68
62.70
58.45
6,516.68
Guarantees
857.62
925.95
113.25
141.16
Interest and Discount
.
7,566.02
Bills Endorsed
Equipment
Other Assets
290 brandies
presented in West Berlin by its subsidiary, the
Bank
r
*fi'»r Handel und Industrie AG, with
.
a
further 35 branch offices. The Dresdner Bank
maintains
capital. Of 'the 1959 earnings,-
added to published
Cash and due
1958
138.24
118.65
Commission
171.81
132.12
310.05
250.77
Other Liabilities
and offices in 1 SO cities and towns. It is re¬
of business in practically till
unpublished reserves have also been
new
1959
January, 1959 and April, 1960. Altogether, the
Trust
certificates valued- at
40,000,000 have been
of at
High Earnings
ASSETS
Real Estate and
funds, of which
prompted the bank oncc more to
reserves
Diisseldorf, Frankfurt
of t offices in the
Forty-five
800,000,000 are in circulation at present.
The expansion
and published
and Hamburg, has further
which includes
hianages four investment
capital of
share
the Dresdner Bank, whidi maintains regional
..
jof this year of
countries, the German Investment
a
In order to meet its customers' requirements,
whidi
by the Dresdner Bank in 1956a
seas
capital increase has been effected, the
least the same'amount.
leading shares from eight European and over¬
in
and Treasury Bonds,
currencies of all
'
added in
portfolios of the Funds
the TRANSATLANTA Fund,
capital by. DM 40,000,000. When
DM 220,000,000
•
reserves;
countries,
measure to
founded
time, the
400,000,000 to DM 520,000,000.
Since the
"
this
the
a
Dresdner Bank will have
guaran¬
foreign banks, and invested
foreign Treasury Bills
DM
of World Bank Loans.
With the launching in January
more
liquid
deposited-substantial
holdings
same
•
foreign companies on
exchanges and also participated
however, lower
deposits. At the
increase
leading part in the listing
now
was,
than the rise in
its
security markets'
of the German Investment Trust (D1T),
by
tees, passed the DM
5,000,000,000 mark for the
first time; this increase
It
in the issue
was
short-term advances and
bills, including
resources with
German stock
6,700,000,000. The total
volume of credit, made
a
on
Foreign securities have recently been
DM 7,600,000,000.
Deposits rose
to
19% to
assets
played
of shares of important
increased
The Bank's total
dealings
-
Main Items of the 1959 Balance Sheet
dividend of 16% (com-
apart
stock exchange
able to-
co-operates with
banks
from declaring
Dresdner Bank has been able to intensify its
abroad still further. The number of
rose
Reserves Exceed Authorised Capital
home and
was
at
-
representative
offices
abroad in
Istanbul, Cairo, Madrid and Paris. In collabora¬
tion with the
Deutsdi-Siidamerikanisdie Bank
AG, its affiliate, joint agencies are maintained in
important centres in Central
and South America.
REVENUE
EXPENDITURE
Salaries and Other
Staff
Other
135.48
40.55
Expenditure
Taxes
124.21
37.98
105.22
Expenditure
63.38
ancj Fees
'
Net Profit
E.
new
Vice-President m charge of Oanu
*
*"
Bank
Ewa
Tr
Meyer, Jr. will manage the new
branch according toR. T..
St. Louis, Mo
Rey-
nolds to the general board of di-
at
Mpvf>r
tor of St. Louis Union Trust Com-
'
♦
* '
a^ 2,000 share of Farmers stock
*
*
outstanding and 465,000 shares of On May 9th was opened the 43rd
old Kent, v
;
.
branch of Bank of Hawaii, Hono-
_
1959 tlie Dresdner Bnnk
-
„„
the Federal Reserve Board. If ap- the par value of $5.00 per shaie.
proved, the move will be effective
The entire amount of the$2,010,-
stock of the par
;
*
extend its business connexions
this
stock
M°Keesnort
0f^$200 000 consolidated
State
.
by
Wilmerding, who joined Henry L.
During
of
by
common
McKeesnort"
$5,9§hoO;
0f
The notice of filing of the appli-
Advisory Board on International Business of Chemical
York
Pennsylvania
Pennsylvania, with
Al-
The election of W. Sam
Carpenter
New
-
on
of
,
shaies
■
...;;
HI to the
Bank
vote
issuance
oon
62,830
Commoq^Stock
Stockholders of both banks will
an
<
J
'
additional
bany, N. Y., under the charter and
■
serves as Director of
the Bank of Silver
Springs, Silver
springs, Maryland.
*
named
V,A., t
I, '
the
exchanged
for
each
share
of 62,830 additional shares of the
April 30
The consolidation was Farmers.
The combined bank Common Stock will be added to
title of "State Bank of Albany," effected under the charter and would have resour.ces in exc^ss ?f the capital funds of the
bank,
effective, April 22, in accordance title
of
"Western
Pennsylvania $260,000,000, combined deposits in ^3141^9 to Canital Stork and the
wRh the applicable provisions
of^■'National Bank McKeesnort" with exhess of $237,000,000 and com'.
Federal and State Statutes. ^
capital stock of $6 537 400 divided bined capital $17,700,000.; There remainder to Capital Surplus. :
stations
T.-
was
In
year.
is
"Western
the^Saratoga National Bank of Saranolitan
l/neegthef hi
t»68 • Springs, Saratoga - Springs,
Instrumental im exprnidiing the ^)000r^aWsithme?emedOw4OCka„Od
corporation's
he
Middleville, Mich, have agreed to
a merger with the Old Kent Bank
& Trust Co.*-Grand Rapids, Mich.
excess
?12,000,000.
leer m
1957
that
resources in excess of $190,000,000 Assistant Vice-President.
.
graduate
a
Cashier
Unon
share
Mr. Hackett joined Mellon Bank
1953
and
was
appointed an
28.80
25.20
310.05
250.77
DRESDNER BANK
AKIIENGEStltSCHAfI
DQsseldorf
Frankfurt
a.
Mr
~
Hamburg
24
;
*
fund holding company,
"V »>%»'
LONG
to
BEACH, Calif.—Financial
Security Corporation is conduct¬
ing a securities business from of¬
fices
853
at
ficers
are
of
ROBERT E.
BY
D.
President;
Kenneth
Vice-President;
and
Weiss, Treasurer.
.
a
mutual
have voted
authorized 500,000
of
shares
common
into 1,-
stock
000,000 shares of class
A and
100,000 shares of class B common
stock. Each share of the presently
Silverman,
J.
Littell,
Henry
.
recapitalize the common stock
the company by changing the
presently
RICH
Atlantic Avenue. Of¬
Adolph
Corporation,
Damroth
Financial Security Corp.
Chronicle
Commercial and Financial
The
(2172)
M.
A
Long-time Need Is Filled
Thursday, May 19, 1960
.
Based
1960.
the recent
on
market
price of Gatineau, the dividend is
equal to approximately 70 cents
per share.
The dividend is pay.
June
able
23
to
shareholders
0f
record May 25.
•
Fund
Abacus
paid
two
divi¬
dends aggregating l/20th share
of
stock of
common
Gatineau Power
shares of in 1959.
•;
:
' #
*
*
■/ V::
Templeton, Damroth common
nies of our day provide for invest- stock will be changed to one share Net sales of Income
Foundation
mfent problems. While many peo- of class A non-voting common Fund shares increased 24% in
the
pie in the financial community and 1/10 of a share of class B first four months of 1960. The
bal¬
.are prone to allude to investment voting common. The change will anced mutual fund reported
net
management as something new, have the effect of a 10% stock, salels for the four-month
period
the authors note that it goes back dividend, since both classes will of $1,406,393, against
$1,126,279
far beyond the Scottish Trusts of participate
equally in earnings in the like period last
330,000
outstanding
'
■
A
long-time need for
the
field
investment-company
from
MUTUAL FUND'
book on
a
with
source
a
"In-
grind has at last been filled.
vestment
Funds"
and
Trusts
to
axe
no
($1.00), published by the AmeriInstitute
can
investment
Re-
Economic
for
search, should
read
be
by every
and,
for
counsellor
that matter, investors, too.
As the
authors, C. Russell Doane and Edward
J.
nor
Hills, note
".
word:
.
neither
.
the
in
the
fore-
Institute
of its staff stand to bene-
any
fit financially or otherwise.
the
Artnallv
Incorporated
Investors
*
this
As the
Pandod and diversified by ad
g
securities representing coal, iror
<*nd other industries. Mo
»
"Investors
th* company increased its hold-
of
published the reinvestigation of the
its
investment-company field.
volume
new
Incorporated
days.
the
Income Fund
notes:
a warning of
pitfalls into which un-
investors
fallen."
had
it
of
monthly
plans in the Temple¬
Damroth group of mutual
ton,
31%
for the
months ended March 31, up
from the same quarter of
$10,000,000
were
1959.
He
the
stated
to
payments
be
of
backlog
made
mutual
in the Tem¬
funds
current income.
A prospectus on each fund is available
dealer.
THE PARKER CORPORATION
200 Berkeley Street, Boston, Mass.
CONSIDER...
EATON & HOWARD
of
shares
first four months declined
in
the
$47,000,
against $312,000 in the first four
months of 1959.
1
h"
■«',
Dan Cohen
;
.■
gaging
from
York
in
60
v,':
Inc.
securities
a
East
City.
■.
Opens
Cohen Associates
Dan
42nd
is
Street,
Officers
en¬
business
are
New
Daniel
Cohen, President; Marilyn Cohen,
Vice-President,
and S. Michael
Weisberg, Secretary.
Caulfield Co.
Picoli,
plans stood at $120,000,000.
The
year.
Redemption
under the
pleton, Damroth group are Nu¬
cleonics, Chemistry & Electronics
Shares; Research Investing Corp.;
for the Corporate Leaders Trust Fund and
What they have done here is to People's Capitalism of the Afflu- Lexington Income Trust.
set forth in quick order the prob- ent Society to erect an investmentlems of the modern-day investor, company business with assets of Investors
Mutual, Inc. in a semi¬
the varying types of investment about $18 billion—more than
18 annual report puts net asset value
companies, background and de- times the comparable figure at the of the shares at March 31
at
velopment, regulations and more end of 1946. The authors write: $10.11, compared with $10.18 on
—much more. In a chapter headed "The development of investment
Sept. 30, 1959.
Total assets on
"Performance Records" they deal companies has been retarded on March
31
were
$1,449,699,979,
ably with the yardsticks for meas- the continent of Europe for sev- against $1,410,653,011 on Sept. 30.
uring results of investment stew- eral reasons. In the first place, Bonds and preferred stocks at
ardship. Using charts and tables, economic conditions have not been latest report comprised 37.41% of
a
20-year record of closed-end favorable because wealth was not total investments, up from 35.78%
funds, open-end common stock generally distributed and savings on Sept. 30.
:„v.-'../iv.'V
funds and
open-end bond-stock were relatively^ small.?* ^We-venfunds is brought into sharp focus, ture the guess that this worthCanadian
International
Growth
Their findings will not—indeed, while contribution to the invest- Fund
net assets at the end of the
could not—please everybody, but ment business will need updating first
quarter totaled
$10,161,491
Messrs. Doane and Hills have ap- before many ,years as a reborn as of March
31, according to the
proached their task as good re- Europe moves ever closer toward quarterly report.'1
;
^
1
porters, -letting
the
Sales during the period totaled
chips
fall the New World concepts-of the
where they may.
United States.
^
$975,130, compared with $762,757
in
remained, or
sales
investment
three
___
that
announced
funds
*
gradually became a
holding company,
"They needed
many
.
m^s of some securities to such a
than advice" in those
more
informed
list of securities selected for
from your investment
g
p»
^ue grew,
needed
A mutual fund investing
^ec1urit;y and a
^ the Socie.te
suits
of
capital and income.
a
1937^ ^ that time offered the greatest
mission had not
for
possible long-term growth
foreign government loans, which
the Securities and Exchange Com-
in a
list of securities selected
."
of
edition
published in
was
.
The emphasis in the original was
somewhat different. At that time
EST.1925
A mutual fund investing
book
first
.
this century. The authors state: and assets of the company. Stock¬
"Probably the Societe Generate de holders of record on May 25 will
Belgique, organized by King Wil- receive new stock certificates.
Shareholders ; also
authorized
liam I of the Netherlands in August, 1822, was the first modem 1,000,000 shares of class A non¬
investment company. The original voting common and 100,000 shares
of class B.
purpose of this organization was
President William G. Damroth
to enable individuals to invest in
course,
,
To Admit H. J. Gurtler
Henry J. Gurtler has acquired a
membership in the New York
Stock Exchange and on May 12
became
a
partner in
the Ex¬
member firm of Picoli,
change
Caulfield & Co., 20 Broad Street,
New York City.
.With Edling-Williams
(Special to The Financial Chronicle)
MINNEAPOLIS, Minn.—EdlingWilliams
Associates, 614 East
Grand Street, have added to their
staff Nicholas A. Angelides, Don¬
ald A.
Hennessy, Jerry Schroeder,
Marlowe
bert E.
G.
Severson
and
Nor-
Stelten.
,
They proceed from there to that
most
ticklish
of
chores:
Recom-
our
I
fast-changing nature of
markets.
counsellor
Many
must
wished
for
are
be
in
of
publication, where the time lag is
measured in months.
*
the
1959.
book
.
than
more
higher
to
previous
quarter of
reports total net assets
&
Halske
amounted
Axe-sponsored
to
$207,512,328
/ 31, compared with
tralia)
Mar.
on
Indeed, they note that material March 31, 1959.
prepared for publication last
«
*
February.
In writing glowingly Selected.
American
of
American-South. African In-
was
IATON & HOWARD, Incorporated
24 Federal St., Boston 10, Mass.
.
tensions
that
would
Union of South
that
has
arise
Africa,
played hob
a
m
the
-
>
to
around
geopoliticians,
reckon
with
Bantus.-
20.
this
they
the
It has since
Not
shooting
of
.
first
r Utilities
Corpora¬
Northern
Ontario
Natural
tion,
Inc.
Gas
Co., Ltd.;: and Steel Co. of
Canada,- Ltd.
Reductions
were
quarter
pur-
effected
(5,000
in
positions in -Consoli¬
dated Paper
in
(4,400) and Republic Natural Gas
(4,300). Increases of 5,000 shares
Trans-Canada Pipe Lines Ltd. was
eliminated from the portfolio.
were
made
in
Mack
Trucks
Corporation, Ltd. and
Page-Hersey Tubes, Ltd., while
and
10,000" in r Chemical Bank New
York Trust.
These stocks were
eliminated: du Pont, Commercial
being
could
the
invest¬
-
holdings
Canada, Ltd.Hollinger Consolidated Mines Ltd.,
shares),
American
Machine
&
Foundry* (10,000), Pepsi-Cola
day -of FebruaryAmerican-South
sunk
-
Hill
(Aus¬
International
Shares,
company
made initial
chases of
Air
Reduction
closed-end company. On the first
African closed at 32.
in
.
Siemens
Broken
of Ford Motor Co. of
*
the
situation
with
that
reports
vestment Co., Ltd., they, of course,
could not have foreseen the racial
v
;
and
among
overseas
and to Canadian
ments
on
■
Prospectuses available from
your Investment Dealer or
holdings of
A.G.
Proprietary Company Ltd.
funds
$195,381,111
Strum, Presi¬
satisfactory
"the
'
than
five
Van
that
required relatively few 'changes
in investment
emphasis:
J
."Modest additions" were made
corresponding
Axe
the
11%
S.
said
position" of the fund's", portfolio
of investments
during the period*
Securities Corp. reports that
f jrst qUarter sales amounted
$9,745,814 and redemptions $1,936>873.
Sales total was said to
day that he had decided differently. Think then of the staggenng chore involved in recomthat
dent,
U1IU.O lAv^jJUi t
to
the
next
mendations
1
in
investment
an
have
Kenneth
'TVlP TTi "mrlQ T?P"nnW"
mending companies. And. it
is
especially ticklish when one considers the
during the first quarter of 1959.
v
not
the
Credit, Firestone, Lone
-
Star
Boston
Fund,
anced mutual
plans
Ce-
for
,
$220-million
bal¬
fund, has announced
the
acquisition
by
merger of the assets of the Groton
ment, Spencer Chemical, Standard Company, a personal holding com¬
Aside from this weakness in the Packaging . (common), Tennessee
pany
with assets
of
some
$7.5
book, it is a most valuable guide
s Transmission and Youngstown million.
4. .
to the investment and trust field. Sheet & Tube.
^
The assets of Groton
include
...
.
:
For
individuals, it underscores the
solution
that
investment
*
compa-
*
*
Shareholders
of
>
-
Templeton,
!
cash,
U. S. Treasury bonds and
stocks.
1
The proposal will be
considered
common
and
voted
upon
by the
shareholders at a
Fund
Affiliated
is
a
meeting
will
common
quality and income possibilities. Mail
booklet-prospectus to
A Common Stock Investment
Fund
CALVIN BULLOCK, LTD.
Investment
are
•
ONE
Established 1894
WALL
STREET,
NEW
YORK 5
A < y
,
objectives
possible
income
of
long-term
growth
for
%Prospectu*
its
this
effected
of
15.
Boston
special
The
merger
through
stock
with
an
the
ex¬
stock¬
having an asset
value equal to the
assets of Groton
at the time of the
merger.
j
;
Fund
capital
and
shareholders.
upon
June
holders of Groton
receiving shares
of Boston Fund
Fund
stocks selected for investment
this ad for free
.
be
change
mutual investment fund of diversified
on
request
..
.,
,
*
*
*
*
;
•
Abacus
Fund* a closed-end man¬
agement investment
company, de¬
clared
a
dividend of 2/100ths of
share of common stock of
Gatineau Power
Company on each of
the
855,716 shares of
[;j^)|l#|^g-j»D:Company. Inc.
stock of Abacus Fund
[1878
a
Name.
Lord, Abbett & Co.
Address
New York
common
Chicago
—
Atlanta
Los Angeles
attributable
to
outstanding,
the- first
half
of
I
191"'
Volume
Number 5952
.
The
Commercial and Financial
Chronicle
.
(2173)
AS WE SEE: IT
Continued from
page X
common stock in
term
I960.*' The major forces which
in
under competitive
Rfnpt
con-
compel business enterprises to lay out such enormous sums in the form of plant and equipment are (1) the
enormous strides that have been made and are still
being
made in technology; and (2) the normal expensiveness of
labor which does not have to operate under competitive
forces as do the employers. Establishments which failed
to keep abreast technologically speaking would soon find
ditions
-1 !£.««#*•
/J
M nr
V*
AVTA
FN/-VW
Jl
_
i
.
»n
i
An underwriting
hxr
Po*»l
1\/T
•
Lorp.
'
hear
we
much
so
from
+Vio\r-«rIri
they, do
limp
in
irom time
In+p iust
time
to
time—about
workers
machines
a
'
_
The
extent
to
which
these
equipment have mounted in recent
very
A
years
for
/%-P
Oi such
An+iotm
outlays
comes
to
and
to the end of
+
«««,„
plant
1
figure of this magnitude is difficult for
on
most of
.
=-
..
- =
home
in
are
of
Canada
Minneapolis and
and
net
paid for
of
out
holders of the
consumer
profits which
were
stock of the
is
University;
1959
unaudited
xn®
sales
of
results
net
were
$8,166,636 and $6,581,868,
respectively,
and
net
earnings
,
.
™edr€*276^i'12 fnrw38Zf 2
respectively (
$
P
Topics
discussion
under
comDlete range
complete range of
or
erations,
the
construction
of
plant and installation of
including
succeed Hunter Breckenridge,
McCourtney-Breckenridge & Co.
the
g-StLouis. as Vice-Chairman of
Among eight
nominees for
new
three-year posts as Governors are
Chicagoans John W. Billings, part-
;
Billings
ner,
ex.
ex
'
R
op-
Becker
&
-
-
Co.;
Frank
E.
broker-
'vice
Skall,
money
&
fl
David
G
President,
Co.
one
one
of
do with how much
hour's time? Of
,
investment sfectifi-r :
ties
and securities analysis.
a
Tj^
TJ1
^
I-J. T
ma-
TT-i-i4-4-/-vv» i~r\
•
Co., St. Louis;
•'
XlULlUIl lU
-
AdmitWiLTowell
;
/
.
;
;
New
York
1
will
Stock
Exchange,
become
^change
a
firm
on
,
./
Robert G. Mead, Vice-President
of
Stone
&
Webster
Corp., Chicago,
of
was
no
and the
and
diligence of the
other, but he
improvement
men
:
vv-;
•
-
•
:
•
mittee.
New-York City,
:
/-
1
V;
I
-
:!
-
-
idea where
would be
on
the
hand
one
operating the machines
an
on
optimist—certainly not
a
realist—who supposed that the predominant factor in this
is not
case
plant improvement. At
possibly doubt
Why then
some
that it is
do
we
one
hear
of the
so
any
rate no one could
leading factors.
much
from
so
-
speed progress on the ground
-
many—in
instances authorities who should know better—about
keeping
wage
ments in
to that
increases within the bounds of:improve¬
''productivity"? We wish
we
knew the answer
question. Are those who provide the means of in¬
creasing productivity to receive no consideration? Is the
consumer,.; for whom all productive efforts are made, to
forego
sore
the benefits that competition normally
him?
equipment
find
a
Why is it that these huge outlays
appear
dozen
occasions?
would
as-
plant and
to be wholly overlooked by those who
a
remote
island, several days distant
from New York, thriving Puerto
Rico today is virtually next door to the
continental United States. Frequent daily
jet flights now reduce the time to a short
3 Yi hours from New York's International
Airport—a tremendous factor in the rapid
economic and financial progress Puerto
Rico has achieved in the past few years.
More than 1,300,000 passengers moved
through Puerto Rico International Air¬
port last year and 46,000,000 pounds of
sea
v
on
Why wages should be increased on
^ ^'
reasons
Once
by
Securities
named Chair-
*£
F. Hutton & Co., 61 Broadway, man of the 196! Nominating Com-
^ebtedness, and 1,000,000 shares of
gets done
wage earner
Doerge,
retary, Chiles-Schutz Co., Omaha,
partner in
member
O.
Executive Vice-President & Sec-
.
William I. Towell, member of the
June
John
President, Saunders, Stiver & Co.,
coulc} findtdetailed figures to show the relative effects:
plant modernization
the
a
g!
and
Bisj10p} partner, M. H. Bishop &
Co., Minneapolis; Burdick V.
Burtch, partner, Henry, Franc &
not distributed to the
not. We have
course
A.
Incorporated,
^
underwriting
^of notes"
-
ba°ker
Danker
market, the bond market, the stock Walter Tintner, partner, Shearson,
Upon completion^ of the finane-
-
investment
to
cover
stock
stock
change and investment dealer
^
by the company from issuance of
part for
broker,
market, investment management,
The net proceeds to be received
apolis; in part to reduce shortterm borrowings; and in part to
increase working capital.
the
floor
what
nothing to
the
among
Exchange's 400 members will take
Far Reaching Implications
These and other related facts which
might be listed
carry some far reaching implications. In the first place,
in
election.
Balloting
Sampson Rogers, Jr.,
Francois
slade, Mount Allison University.
manufacturing capacity in Minne-
institutions
meaning is to be attached in general to that magic
figure "productivity," which is defined as output per man
hour or one man
working one hour. Is it reasonable to
suppose that these enormous
outlays on the latest maehinery and the most careful lay-out of., plant can have
tantamount
to
Bishop's University; and G. Green-
out plant and equip-
enterprises in question.
,
Nomination
Minnnob
McGill
^|?ar.es outstanding prior to
rinL JS
h9?Ui£
riods ending March 31, 1960 and
new
years a very large part of the financ"internally." That is to say, it has been
common
Committee.
Comrnerclales; W. F. Van Horn,
on
!T?n
goods—
gives rise to such payments
to individuals—would
greatly exceed supply—and cata¬
strophic price increases would inevitably occur. Who pro¬
vides these funds?
Well, an answer in detail is unfortu¬
nately not possible, some substantial part of these capital
done
the
ominating
versity of Sherbrooke; W. H. Pugs-
or
share
in question. Otherwise the
demand for
the production of which also
ing has been
of
N
an(^ investment dealer.
William S. Macfadden, partner
the 724,969 com-
per
in
in
Chair¬
man
W CJ- Reddi,n' University
the additional shares will be used
^ ?Ci^tos stockholders, the buyers of securities
vis & Co.» Chi¬
cago,
of
New
Brunswick;.. Reverend
Brother Lionel Dusablon, Laval
its ley,
these proceeds must be laid aside to finance the activities
,
Ralph W. Da¬
^d $i!i5o!903 ^respectively^
covering the point, but there can be
no
question at. all that the total is huge to say the least.
It is obvious that individuals must
forego current
consumption which they might otherwise enjoy to provide
the means wherewith these
large improvements and additions to plarrf'^re finarided: Since such
outlays by business :
inevitably give rise to salaries, wages and other forms of
remuneration to individuals, 'Some; substantial
part of
market, and various savings and investment
provide it. In recent
the
Charette, Ecole des Hautes Etudes
$1.59
reliable statistics
worn
by
Barr,
of
partner
nanil=iaf.!es{o>io<!™f,ieCt9n%!n0™a
goes
merely replace
an¬
University; Armand Leroux, Uni-
net; sales
earnings of the corporation,
production in this country is absorbed by the making
things we want and
need in our everyday life.
There is, so far as we know,
expenditures
and
been
Lyman
Toronto and Montreal Stock Exappli- changes, its purpose is to provide
freezers, university
teachers of business
Minn.
Combined
of machines with which to make the
no
sixth
consecutive year.' Arranged by the Investment Dealers'
stock-
principal
Duluth,
—
-
has
nounced
116,400 the
yearhs under pi1vate ,brand
The company's
grasp with any feeling of reality, but no one can possibly
miss the fact that it is huge. It would be
interesting to.
know what percentage of all the human labor that
into
Exchange, it
including
properties
to
us
Midwest Stock.
labels.
l-it
$135 billion,
some
the
of
ernors
are
throughout the United States and Essex College; M. J. D. Grimmer; Place Monday, June 6
a,
in several foreign countries under
University of Manitoba; George R.
A partner of McMaster, Hutchthe trade-marks "Marquette" and Post, Queen's University; Peter inson & Co. for a quarter-century,
"Zenith," and increasingly in re- Lusztig, University of British Co- Mr. Rogers has been active in the
is probably not
widely realized. From the end of 1955
men
+^+ol
1959, the total
being
'
-
outlays
Chairman of the Board of Gov-
as
mem-
bers in Montreal and Toronto
refrigerators, combination freezer- subjects with the opportunity to
refrigerators, home washers and observe the operations of investdryers,
coin-operated
automatic ment and stock exchange houses
washers and dryers, and wringer- and to confer with senior executype electric washers. Marquette tives.
<
v
also manufactures electric and gas
Those attending this year are:
welding equipment and battery Professors Thomas Brewis, Carlechargers. Appliances are marketed ton University; J. M. Brownlie,
noint hevond what would
y
be reached in other circumstances.
didate for a gec0nd one.yeai; term
hosts to 12 Canadian University
offered, 275,031 professors during this week. The
new
financing five-day visit is taking place for
i
represent
the
ances,
of the factors which stimu-
one
such developments to
at
holdings. Association
general.. Their
m
exchange
Minn.,
official can-
has been named
Jr
The company is
engaged principally in the marketing of
these
or
n
company- .andthe sale by certain
holders of part of their
seldom find the term accurately defined, is
facet of this constant search for better and
displaced by automation
monopolistic practices are
.Nominates Rogers
Canadian Dealers
managed
shares
of doing things, although an important one.
hardly lies in the mouths of labor leaders to complain
__as
*I
Minneapolis,
n?G[u arf'
Uf
the
by
cheaper ways
It
group
^T»I.
stock
days and so
only one
of
snares
legitimate expedient available to them
keep labor costs down. This is, of course, as it should be.
about which
^
oi
find and,use every
Automation,
T
addition to short
borrowings.
by,c?5.1 M- k°eb> Rhoades & Co. Hosts t/) ProfPS^OT*^
„?i°p^ood
lUlCbbUlb
common
~
——y '' of '« shares TORONTO, Canada — Investment
stock
Marquette dealers and stock
themselves losing out to other establishments which did
do so. The same is true of establishments which failed to
to
OffWorl
vyllCICU
bank
25
air
freight were handled. A dozen Ameri¬
and foreign airlines now serve Puerto
Rico. The airport is operated by the Puerto
Rico Ports Authority, an instrumentality of the Commonwealth.
Public obligations of Puerto Rico have
double tax exemption. Exempt from both
Federal and State income taxes, these
bonds are attracting a growing number of
investors who seek a high degree of se¬
curity combined with reasonable income
yields.
can
GOVERNMENT DEVELOPMENT
P. 0. Box 4591
BANK FOR PUERTO RICO
45 Wall Street
San Juan, Puerto Rico
Fiscal Agent for the Puerto Rico Ports Authority
New York 5, N. Y.
26
the
Oil and Gas Securities
Continued from page
own
10
refinery needs
years.
For
At
7
the next
over
*>•
few years this plan of the
a
French Government will work
out,
or
ing or lowering these yearly ex¬
penditures.
present time, the well¬
price of natural gas is ap¬
proximately 20% of the price of
crude oil on an equivalent energy
basis. This price disparity between
the
head
natural gas and oil exists in part
because of the regulated status of
crude, it cannot be
the natural gas industry and in
expected that it will entirely sup¬
plant all of the Middle East crude. part from the competition that ex¬
ists for today's fuel market. Not
If
this
should
happen,
France
would have much more gasoline long ago, income from the sale of
natural gas was merely considered
than it needs
but not enough
as
additional revenue to oil. Oil
heating oil. Therefore, some com¬
was the primary objective in drill¬
panies are thinking of shipping
part of their Sahara allotment to ing; but, since the advent and
the U. S. and Canada in place of growth of long-distance transmis¬
sion pipelines, natural gas — a
Middle East and Venezuela oil and
but, due to the high gasoline
and can
decreased by rais¬
expenditures
yearly
be increased
con¬
tent of Sahara
—
some cases, it is conceivable
high net income or earnings
might indicate that a company
was
not actually operating
in a
manner
conducive
to
continued
In
that
growth because, to show
better
a
earnings f i g u r e, the company
might
be
sacrificing
additional
expenditures toward further ex¬
ploration and expansion—a situa¬
tion
which
in
harmful
the
more
run than a
current
net
long
dip
temporary
far
be
could
in
Chronicle
Commercial and Financial
The
(2174)
.
a
suitable crude
more
ture for French
mix¬
list
of
Lybyan
discoveries
is
continually mounting. A great
already been found
in this country, and indications are
deal of oil has
that
vast amount of reserves will
a
ultimately be discovered. It will
require considerable capital ex¬
penditures and much time to de¬
velop the important fields of cen¬
tral and
should
fore
on
western
Libya,
sociation. These statistics indicate
that
larger
a
siowly growing market.
mented their high-cost American
they already hold.
successful in- production with lower
deoendent marketers who contin- eign
crude and/have
There are several
ually take a large portion of the
markets in many areas by under-
This
pricing the larger companies.
is
major problem in the industry
a
oil
world
any
effect
markets.
now
is
gas
I
cannot
expanding
of oil's biggest
commodity and one
Growth
competitors.
should
consumption
rise from
lion
domestic
continue
to
approximately 11.2 tril¬
in
ft
cu
in
to
1958
17.2
trillion
this
discus¬
sion of natural gas without men¬
tion of the Canadian gas industry.
offers
the
investor
many
production
increased
54%,
reaching 925 million Mcf/D.
In
1959,
gas
production
increased
30%
some
billion
to
approximately
Mcf/D,
this
and
1.2
year
an¬
decline in oil production since the
ther
end of the Suez crisis in mid-1957.
production
Actually, domestic oil production
obtain the high rate of production
which is forecast, a great deal of
1947
and
1958
lost
1.2
the
kets in the U. S. and Canada, fur¬
wide gains in Canadian gas
capital
of
of
into
gas
oil
markets.
Natural gas will continue to
com¬
gain is expected. With
expansion of mar¬
inevitable
million B/D because of the influx
natural
may
to
international
should
will
which
be
will
continue.
required,
side of Canada.
much
from
come
To
out¬
For these reasons,
from the Ca¬
producer's
pri¬
objective is to find more re¬
mary
and
serves
domestic
costs
opment
to
undertake
Since this speech was presented,
the
National
Energy
Board
of
passed
Canada
ducing
future
at
growth
rate
will
made
mendations
its
initial
with
recom¬
respect
to
the
the
export of natural gas to the United
continue
States. The total export volume is
at
other
costs
world
is
a
wellspacing
took
first
when
it
step
from
ft
be
depths
of
increased
few
years
max¬
the U. S. For this reason, common
of
natural
gas-producing
and
pipeline companies have be¬
The
four
not
continue.
At
the
moment,
it
have
than
value
more
behind
ties. Today more than
the
investors
an
indefinite pe¬
other
any
are
group
them
of securi¬
ever
endeavoring to
ap¬
Since
World
selves.
War
II,
the
gas
Therefore, before discuss¬
ing the different groups within the
has
ex¬
oil industry, I would like to
bring
degree that today,
out two factors that are
important
along with the distributing com¬
when
evaluating securities in this
panies, it has become the fifth
industry.
largest business in the
transmission
industry
panded to such
a
U.
estimated
that
companies
had
1959
of
This
mission
nificance
that
major
it
In
gas
over
cash
expenditures.
of
two
as
this
the
real
expansion
sig¬
the
appraisal
stock
(especially
the
flow
pro¬
of
cash
should
be
the
any
oil
or
growth
generation or
a
investor
—
significant
more
rent
will continue its
charge-offs against
cur¬
how
gas
one
growth
of
the
industries,
nation's
and
(2)
the confidence
optimism of management for
the
income,
shows
the
investor
much money
the company
generates each year and how
much
capital it has available to put back
the business for
growth and
expansion. In comparison, net in¬
into
long-term outlook despite the come
is a figure which
represents
annoying regulatory problems.
the amount of
money left after
oil
demand
continued
lined
during the
will*, see
we
of
low
from
the
to
..
analyzing
_
,
the
..
.,
,
petro.,
.
we
have
a
should have
runs.
derives
difference
his
profits
between
COSt Of his Crude oil and the
4
to
decrease
a
this
5%,
a
some
in¬
in
capital ex¬
penditures. In the future, domestic
producers will continue to expand
into more and more
foreign
where
low-cost
reserves
with
merge
larger
can
be
integrated
the
have
had
a
year
competition in oil
have seen Aurora
of intense
markets.
We
larger integrated companies. These
come
(and
from
petition
portion of Lis
more
attractive
0I* and gas securities.
aver-
#Based
before
on
the
address
an
AIMS
by Mr. LaPiere
the Society
Meeting of
F&tfoleiim Engineers cf the American
p/trokum
'L^fneer!, N^Y^kat
James
y.
Hickok Wins
early months of 1958, it
Salesman Award
declined to
a
low of 520/bbl, but
approximately 750/bbl ST.
LOUIS, Mo. — James P.
by December of 1959. During this Hickok, president of First National
10-year period, there were two Bank in St. Louis, was presented
general crude-price advances with the distinguished salesman
it
to
rose
amounting to a total of approximately 500/bbl, but with the in-
award, the highest award in the
selling profession, at the Annual
Awards Banquet of the Sales Ex-
of
labor
and
im-
to
necessary
ecutives
Association
of
Greater
with the octane race, the St. Louis on April 28 at the Chase
refinery spread remains depressed. Hotel..
Sharp
shifts
in
the
refinery Mr. Hickok was the lone execuspreads will constitute a problem., tive to receive this honor which is
up
Profit
margins
to
company
vary
,
from-awarded annually to the business
depending > leader
the location of the refineries
upon
the
and
will
company
distance
fineries
and
between
the
the
re-
wellhead.-
One
that the refiner has been able
way
"whose
personal demonenlightened, aggressive
salesmanship has'served as an inspiring
challenge
to
men
and
stration of
women
in
to
selling."
protect his profits is by diver- •
Mr> Hickok was singled out by
ying into petrochemicals, where
the Association for his aggressive
a
ar§er profit margin is enjoyed
and where demand has been stead- leadership in the development of
piaps for the $89 million sports
1
si
n<w
+
a
i?16 lntegrated com"
hLSo Si
are* reflneries on
v,
ESfftS
tfrniin'c
groups
imately 8 to 10%
I
can
expect
to
seek
the
refineries
domestic
own
that of 1958.
over
believe that in
their
future
which
lack
supply
companies
with
mergers
we
crude
reserves
Par~
resarves
u,in
hoin
Tn
In
•
a
«
my
s
3
nntciM
nr?inini
opinion,
mv
5
+h
c
m
dow£ and
refmery
u
?>
A
-a^
*
m
Armstrong, president .of
T*
Sales Executives Association, presented the sward.
--Lv
n
/
,
Coast Exchange Member
--
Warren
the
t/ Ziil, °r'e;at'ons- ThlJ
maintain
Qnrp'H
stadium and civic center, and for
his efforts in raising $20 million
" of private equity capital needed to
launch this project and to see it
through to completion in 1964.
mT lmproved
?,Ye|:age of the
will be approx-"!
*irni' I
earnings
H.
Board
Berl,
of
the
Chairman /of
Francisco
San
Division of the Pacific Coast Stock
Exchange, has announced the election of Mr. Robert Pogats to membership in the Exchange, effective
the sharp cur- Mav 1
lQfin
refinery construe- ; Jl
V,
/
tion planned by the
industry for
Mr\P°gat?' an °"1??;r and
this year is
definitely a step in ing stockhokler of the member
the right direction.
firm of H. T. Birr & Co., Inc., Sa
Francisco, acquired the member¬
ship by transfer from Mr. H. T.
International Oils
tailment in
new
With
With
th«
the
oniiomo+nri
anticipated
•
increase
in
Gasoline, West¬ yearly foreign demand and the
ern States
Refinery, Eastern States long-term
outlook, the internaRefinery,. Bankline, International tional oils should fare
better than
Refineries, Lake Superior Refining the domestic
companies. As we
and Leonard
Refining merge with have indicated, the Middle
East
mergers
some
portfolio in the
.
Refining and Marketing
We
the
areas
found. If successful in their search
for foreign
crude, some of the pro¬
ducers may
eventually be forced
by lack of refineries and markets
to
In
level of
operations and in
stances
—
plus all of the
non-cash
from
refiner
keep
in
flow, which
finer cut back his
The
where
upon
to
40
particularly companies.
than net income. Cash
is the net income
fold—(1) it signifies
clearly illustrates
and
is
approximately significant to
the 1958 trans¬
fact, usually
investor,
natural
pattern
be
company
the
is
It
record
will
$100 million
gram
S.
transmission
outlays in
situation)
approximately $810 mil¬
lion.
For
the
called
costs
imports, a
before, better inventory position, stream¬
praise oil and gas securities them¬
riod.
Conclusion?
Anyone
nearest
our
emergencies
be
operations
in
made
would appear that the
government
will maintain its restrictions
on
industry for
/ ■"/;•
them.
Even though the growth in oil
sharp increase in production. Be- and gas demand will not be so
cause
mandatory
imports
have great over the next 10 years as it
come
into being and because we was YYer the past decade, enough
have this excessive capacity exist- growth element still remains in
ing today, the present high runs the industry at the present time,
to refineries frequently cause an and oil and gas stocks would apunrealistic build-up in inventories. Pear to be depressed. With values
This build-up in turn, has caused present
and earnings and diviprice cuts and has made the re- dends apparently safe, an investor
of
case
would
proved
fact, the entire industry. There
by the following com¬
come
increasingly popular with panies:
is little hope for an increase in
Trans-Canada
Pipeline;
the investing public.
Alberta and Southern; West Coast the price of crude because of our
The question of federal
crude
reserves
and
our
regula¬ Transmission; and Canadian Mon¬ ample
tion always must be considered tana.
present production capacity. Last
when looking at the
year the domestic producers had
growth pros¬
Looking at Oil and Gas
the benefit of an approximate
pects for this industry. Undoubt¬
8%
Companies Today
increase in production and an in¬
edly, without any controls expan¬
At the present time, the
sion
could
be
major¬ crease in net earnings of about
somewhat
more
rapid, but because the growth has ity of the oil and gas companies 6% over 1958. For the short term,
are
selling below their appraised the
domestic
apparently proceeded at a fairly
producers
should
value. In fact, many experts be¬ show better
accelerated
rate
even
with
the
earnings in 1960 than
lieve that, based on
in 1959. This will be caused
governmental regulations, there is
today's mar¬
by an
no
reason
to believe that it will ket prices, oil and gas securities anticipated
increase in domestic
were
of
that
creased
6% trillion cubic happen in more and more pro¬
ducing areas. This will benefit not
applications approved only the domestic producer but,
feet.
as
to
pro¬
5,000
from
I believe that
in
recently
law requiring that
spacing on oil wells
acres.
next
/ leases.
future
the
a
imum
80
industry
of yvider
program
on
direction
9,900
the
for
approximately 5 to 6%/year in
approximately
stocks
much
as
increase
to
future profits and decrease devel¬
for
future years.
over
them
with
companies
in
9V2%; it is estimated that
<
refining
the
Rising discovery age wholesale price of his refined
development costs, restricted products. This difference is comproduction rates and imports now monly known in the industry as
mean
longer
payouts
and
de¬ "the refinery spread." During the
creased profit margins for today's
period from 1947 to 1958, the
producers. One possible way for finery spread averaged 900/bbl.
share
of
Todav
/r//;'■///;';/
crude-oil sources.
years
fuels, with
their profit and
and
10
prevail
find
to
competitive
its
decisions
Producers
domestic
this
average annual rate of increase
oils.
Domestic
The
to
an
con¬
the different groups within the oil
country. Over the past
gas has almost doubled
residual and industrial
which
industry—the domestic producers,
the integrated companies and the
Oklahoma
both
There still remain
exist, but I believe that
nadian authorities should continue
market
oper¬
definite patterns are taking shape
which make it possible to appraise
favorable
domestic
area
the
reserves,
uncertainties
pete directly with petroleum to
fill the demand for
energy in this
the
to
area
the time it takes
upon
to deplete the
things
many
from
vary
depending
gas
other 30%
between
and
upon
improved
earnings by so
marketing should show an improvement of
approximately 8% over 1958.
in
profits
increasing
cost for-
-
doing.
It is also interesting to note that,
whereas the international oil cornpanies have concentrated a great
deal of effort and expense on foreign countries, they have also been
the fastest growing crude-oil producers in the U.S. during the past
eight years. Estimated 1959 earnmgs for the
international oils
capacity of
the U. S. is approximately 9.2 mil¬
lion B/D which is over four times
dependent
In 1958, Western Canada's natural
ft
in
1967.
The
outstanding
growth in natural'gaS demand has
been a prime factor in the sharp
cu
famil¬
are
is
tinue
///\
conclude
opportunities for future expansion.
an
many
operations.
many
Canada
dustry
United States
because
iar with the procedure. This value
the past years.
1970.
This segment of the petroleum in¬
NATURAL GAS
Natural
million utility
cus¬
receiving gas today
32
earnings.
Quite often,
reserves
Thursday, May 19, 1960
leum industry realizes that the inating costs, the price of crude and competitor, the Soviet Union; the dustry has gone through two of
will increase to some 44 million
gas and the risks involved.
.;•/ average daily crude-put in 1959
difficult years. I believe
by 1970 and that the industry's
The oil industry is a very com¬ was around 8 million B/D. It is that the worst is over. The induspipeline system which now ex¬
tends some 572,000 miles will in¬ plex one. It is an industry that felt that this amount of excesive try recognizes the problems that
has undergone many changes over refining capacity is necessary in exist and is taking steps to correct
crease
to
over
850,000 miles by
be three to five years be¬
our
the
tomers
that it
so
Libyan crude has
growth in natural gas
statistics
recently made available by the
Gas Appliance Manufacturers As¬
Libya
The
This
areas.
is further brought out in
consumption.
.
position in a^and also own the refining, transOver the porting and marketing facilities
past years, companies could show necessary to
turn this oil into
good
earnings
because of in- money.
creased oil sales large enough to
Because of the present unstable,
make up for any lost markets; but, political situation in the Middle
today and in the future, consump- East, the international oils have
tion will grow at a slower pace begun to search elsewhere for adand it will be more difficult for ditional reserves. The majority of
companies to maintain the markets these
companies
have suppleobtain
to
today which larger companies will
the book value of have to work on, and it seems logan oil
or gas
company is only a ical to expect a series of consolifraction of the market price or of dations between the independents
shipping corresponding amounts cleaner, cheaper and easier han¬ its appraised value. I will not go and the larger, integrated compaof heavier Middle East crude to dling fuel—is now being brought into detail on how to arrive at a nies. Now and in the future, the
into all of the major populated
the French refineries to come up
fair market value for oil and gas industry will be concentrating on
with
.
future
mergers)
the tremendous com¬
among
companies, trying
is
likely
to
supply
much
of
the
world's oil needs for
years to come,
rhe
international
control
most
of
oil
companies
these <reserves
Birr> HI, also
jng
an
stockholder
officer and votthe
member
of
IPS stocknoiaer ot me men
Marache, Dof flemyre Office
SANTA
ANA, Calif. — Marache,
Doffiemyre & Co. has opened a
branch office at 824 North Broadway under the direction of Arthur
E.
Smith.
Number 5952
191
Volume
.
The
Commercial and Financial
Chronicle
.
.
PUBLIC UTILITY
SECURITIES
(2175)
Frazar Wilde Is
Yes, That and More!
"I
BY OWEN ELY
a
Lehman Director
think, it vital that Federal costs be reported in
Frazar B.
Wilde, Chairman of the
Board and President of Connecti¬
cut General Life Insurance Com¬
that is complete and clear. Under present
even the experts find it difficult to learn
way
practices
exact
Federal costs. How, then can the Americanpeople make right decisions as to which defense,
& Foreign Power Co.
Electric Bond and Share Co.
American
American & Foreign Power serves 11 Latin American countries
with electric and other utility services, and has been subject to
the inflationary trends
and political upsets characterizing this
The loss of income from Cuba last
area.
year
"In
Foreign Power's consolidated share earnings reached
a
.
peak
door'
$2.54 in 1953, dropping to $1.90 in 1954. Later they recovered
moderately but eased to $1.93 in 1958 and dropped sharply to $1.19
(company only) in 1959, The annual report is not yet available
but it is estimated that if income from Cuba in the first half of
1959 were eliminated, earnings might have approximated $1.00.
The
com¬
be
six
witf.in
months.
The
increasing
the
which allows
The
Mr.
in
Frazar
income
received
from
poration and the Holyoke (Mass.)
Power Company.
He
is
Chairman of the Commission on
Water
Money and Credit initiated by the
Committee for Economic Devel¬
them
these
cial
Foreign Power has also negotiated a
Argentine, where its investment of over $115
million was virtually expropriated by Peron a few years ago. The
company is to receive at least $62 million for these properties, plus
interest accrued from
than
this.
The
is
truth
that
the
of
new
a
electric
plant in Argentina which will sell
power
to the
.
expenses, amortize cost of the plant and yield a fair return
Foreign Power,- The new deal in Mexico and the settlement in
Argentine
(if
finally
ratified
along indicated lines) shouldf
substantially offset the loss of income from Cuba, we understand.
Conditions in Chile | are reported to be improving after several
of rather severe inflation, but the prospects for income to
years
Foreign Power
Brazil
well
also
hard
are
remains
to
assess
uncertain
this
at
because
time.
The
continued
of
outlook
inflation
Chairman of
of Trustees
College
and
a
member
Allen Rogers
Forms Co.
(Special to The Financial Chronicle)
,
Illinois Crime Prevention
Lois
ject
will
"Crime
be:
Prevention."
v
Bureau^
Her
sub¬
Crime
and
/
President; Robert G. Venema, Sec¬ Exchange.
in
Mr.
the
who
Myers
investment
Perron, Vice-President. All were
in
formerly with F. S. Yantis & Co.
Chicago
for
many
years
THE PUBLIC UTILITY ISSUE OF
52% of the stock
of American &
Foreign Power, was at one time a "super holding
company" for both domestic and foreign utilities. However, under
the
Holding Company Act it has been compelled to liquidate or
distribute its interests in the three former holding companies,
Electric Power & Light, American Power & Light and National
some
THE CHRONICLE
Will Be Published June 16, 1960
Power &
Light, and its only remaining interest in domestic utilities
is a
holding of less than 5% of the stock of United Gas Corp., plus
some A. T. & T. It* was allowed to retain
intact, however, its hold¬
tax
a
chases the
&
Foreign
on
block of Foreign Power each year
same
amount
EBS's net assets
as
affords EBS a
tax-free basis.
and usually repur¬
The latter
Power.
loss; to maintain its dividend
a
later.
•
of March
..
'
Amount
Net Current Assets...
2.92
10.1
20.7
2.5
6.01
—
having quoted markets
0.73
1.54
3.37
67,798,300
1,359,600
Escambia Chemical Corporation
Other Investments:
and
Total
0>) Represents
discount.
(c)
12.91
0.26
prime
commercial
paper
of
total
and
U.
S.
At
cost.
'• )
At
the
Treasury
outstanding,
Price.
hi)
$28.99
$152,224,900
Shares held represent S3.3%
5.3
11.6
44.6
0.9
north
In the first
shown
by
nation's economy.:'
quarter of 1960,
in the first
quarter of 1959,
Bills
less
accounts
(Including estimated
★
Get your
the
★
perspective
EBS earned
At the recent
recent low of
price around 22 V2 the stock yields 5.3%, free
.
this year's prospects and the future trends of
public utility industry.
Do
Bank
not
in
opportunity to advertise your Firm, Corporation or
miss the
this
important issue. Please reserve your space
-
requirements
date of June 13th.
Regular advertising rates will prevail
in this important issue.
310 compared with
income from American & Foreign
after the Cuban debacle).
EBS declined from last
year's high of 38 to the
income taxes.
on
surplus).
Ir°m $1.40
°I
,
unearned
valued at 8*4, the last sale
Power being reduced more than half. Current income would seem
adequate to support the $1.20 dividend now paid by EBS (reduced
22
/
for space
Ebasco's
utility leaders
this vital segment of the
100.0
'
net
opinions and forecasts of the nation's public
non-industry authorities on the outlook for
before closing
____
PUBLIC UTILITY ISSUE will pre¬
4.3
3,850,000
8,084,000
17,696,700
Ebasco Services
Incorporated (e)__
quoted markets
$1.25
15,331,700
31,547,800
—
Not
of
Total
$6,556,800
Short-term Investments (b)_„
American & Foreign Power Co. Inc. (c)
Chemical Construction Corp. (d)
Having
Percent
Share
of EBS
.
The 1960 edition of our ANNUAL
sent the official
;
31, 1960, were valued as follows:
Per
,
★
has
business
been
as
country's financial health to this project.
EBS sells
,
retary-Treasurer; and Mrs. M. M.
in Y
ested in rushing to completion his beautiful new capital,1 Brasilia,
built virtually in the wilderness, and seems to have sacrificed the
ings of American
the
formerly with Slayton & Co., Inc.
Lundell" Higgins.
the political uncertainties in connection with the Presiden¬
tial election this fall. Brazil's President has been mainly inter¬
valuable
of
—
as
Electric Bond and Share, which holds
the
of Connecticut
The Investment DALLAS, Tex.—Allen Rogers & CHICAGO, 111. — Woodrow H.
Women of Chicago will have as
Company Inc. has been formed Myers has become associated with
their
guest
speaker
following
with offices in the National Build¬ First Securities Company of Chi¬
their monthly dinner on Wednes¬
cago, 134 South La Salle Street,
day, May 18, at the Chicago Bar ing to engage in a securities busi¬
of the Midwest Stock
Association, the Director of the ness. Officers are Allen B. Rogers, members
CHICAGO, 111.
pay
the
the
With First, Securities
Government. The electric rates will, it is understood, be adequate to
to
Life
and
founder
a
past
American
the
Insurance,
Board
position of the Treasury really is today.
Chicago Inv. Women Hear
si ould be paid by the company, as well as the rate of interest, etc.
However, Foreign Power is obligated to re-invest about $77 million
in
of
Insurance
America;
Polytechnic Institute.
of the above amount
excess
Life
the
of
Convention,
not—can say just what the finan¬
or
a
Advisory Committee of Rensselaer
they were taken over; the
Supreme Court, aided by four
experts, will determine how much in
of
first Chairman of the Institute of
no
the dates when
Argentine
Justice
also
of the
the C.E.D..
director and past
of
trustees
President
Life
one—expert
\■
Chief
of
is
He
as
unfortunately, numerous other
committed by Congress, many of
worse
member
a
and former Vice-Chairman
are
sins
even
and
(C.E.D.)
opment
President
financial
The
Trust
the Emhart Manufac¬
Company, The Plax Cor¬
turing
Association
com¬
and
,
Company,
the
in
Bank
Connecticut
Com-
Trust
B. Wilde
of
Bankers
p a n y
he goes!
there
Wilde,
addition, is
director
a
pro¬
gentleman is dead right—as far
of
Lehman
Corporation.
practice of 'back¬
Federal
by
Lehman,
the
some
an¬
President
board
But
was
Robert
are
We think the
Lehman
nounced
Eisenhower's
New York "Times."
Over the past year or so
settlement
President
remainder,
event the new deal looks very favorable for the parent
pany, considerably
properties.
cut
as is true of
programs for which
specifically appropriated."—J, Vaughan
Gary, member of House of Representatives, in the
approximating
$63 million, is payable semi-annually over a 15-year period with
interest at 6V2%, both interest and instalments being payable in
dollars.
However, the instalments of principal must be re-invested in Mexican enterprises other than utilities, and it is under¬
stood that the company is now exploring these possibilities.
In
any
it
Democrats campaigned on the
expenditures,
American & Foreign Power
on account and an additional $3 million
$5 million
due
spending,
funds
cional assuming debts of $34 million).
will
we
had
we
be financed by direct borrowing from the
Treasury rather than by the normal appropriations
process. Programs financed by the 'back-door' are
not subject to annual
Congressional review of their
recently sold its Mexican properties to Nacional Financiera,
of the Mexican Government, for over $70 million (Na¬
has received
that
grams to
agency
an
The
of
Corporation,
"This confusion arises from the
of
However, progress has been made on other fronts.
1958, when
a
director
budget requests, the Republicans campaigned on
the claim that Federal
spending would be increased
because the Democratic
Congress had authorized
more
money to be withdrawn from the Treasury
than the President
had requested.
The public,
rightly, was confused.
been
financial difficulties in Brazil. In earlier years
the Argentine properties had ; been appropriated, so that no in¬
come has been received from that country for some time.
Thus
while many Latin American countries have given an impression
of feverish growth, particularly Brazil and Cuba, it has been difficult to maintain net earnings at corresponding levels.
pany
elected
security and well-being?
proof
of course, a
affected
was,
earnings had doubtless already
major blow, and
somewhat by the
our
has been
pany
international and domestic
programs are most vital
to
27
THE COMMERCIAL & FINANCIAL
25
PARK
PLACE,
CHRONICLE
NEW YORK 7, N. Y.
RECTOR
2-9570
was
28
and Financial Chronicle
The Commercial
(2176)
.
.
by business in new plant and
.-equipment and in inventories de
clined by $14 billion whereas t
U. S. securities, the liquidity will decline in gross national product
suffice for an expanded economy was only $9 billion.
most ten million
employed in 1939.
today has large reserves and still
The Affluent 1960's Can
war-time
_
Cause
1970 Depression
a
for
another
The
Continued from page
to
check
to $180
from
about
billion
$80
billion.
basic
causes of the inflation of the 1940's
and
the
1950's.
That
inflation,
Here
see
we
however,
brief
in
the
receding at a
has been
greatly diminished rate ever
1948. It is a pity so few
very
since
people know this to be a fact.
From
1940
to
August,
1948
about 9%% a year.
eight-year period, the
total rise in prices was 75%.
From August, 1948, up to Feb¬
ruary,
1960, the price rise has
been 1%% a year or a total price
rise of 20% for this 12-year period.
Clearly these figures reveal that
prices
rose
this
For
of inflation has been
the rate
back
by five-sixths in the
periods, first, 1940 to 1948
second, 1948 to 1960.
No "Creeping Inflation"
1950 Nor After 1860
It
is
interesting
conference
of
that
wide
two
and
.
.
„
7.
cut
A
interest
ar¬
ranged by the University of Min¬
nesota in
Minneapolis brought the
late Professor Sumner H. Slichter
as
Professor Slichter launched
the
term
"creeping inflation" at that
meeting in Minneapolis.
Following the very time the
term was coined by him, we had
no inflation at all for a
four-year
period, from March, 1952 to March,
1956. Then came a typical invest¬
ment
boom
described
well
so
largely eliminated excessive wage
increases from the economic pic¬
ture thus serving to restrain the
v1
*
•
8.
A Deflationary
a
loans
was
ing system
their
this level of 23%
two acts of
in
1934
adequate
lapse which
that
(2) financing
during the war, 1941
to 1945, increased bank
liquidity
to
we
"
1957.
-
-
A-- -A:
..
Since mid-1958 the price level,
as has been pointed
out, has ad¬
vanced
at
a
of
rate
barely 1%
a
of
The forces which produced this
great inflation from
are
1940
to
1948
nonrepetitive.
minishing
very
diminished
years;
They are di¬
rapidly and have
for
the
The supply of
in
the
Reserve
drain
banks even in
While
the
thorities
mitted
money
today
set,"
to
the
lend
"on
question
any
>
of
good
what
trouble may come is most
World
eral
War
debt.
since * the
II
The
has
been
debt
of
end
the
the
of
Fed¬
Fed¬
eral
Government and its agencies
in the first 13 years after the war
increased only 6M>%. In the same
period all other forms of debt in¬
creased
thrust
from
to
deficit
200
inflation
in
the
to
435%.
caused
The
by
a
budget
In
fact,
would
the
have
regulation
been
or
better
law
designed, if preventing bank
failures and preventing a decline
in the total supply
of money is to
the
objective
of
bank
policy
under
conditions ,of great
eco¬
nomic stress, had it stated that in
such times the Federal Reserve
authoritiees
could
bad
At
asset."
lend
such
"on
any
time
should
since
tions in
The
and
1946 with mild
1953 and perhaps in 1958.
single large deficit of fiscal
calendar
comes
excep¬
and
1959
produced
consumption
in¬
stability
tive
be the most central
objec¬
of the Federal Reserve
Sys¬
tem and all assets other than
cash
and
short-dated
U.
good and indeed then
"bad" assets.
Perhaps a
may
price level.
compromise in the
The
increase. In the recent steel
agree¬
the rate of wage increase
ment,
was
held
down to about a 2.3%
cash increase for the
workers and
to a total increase-of
from
{
to. 3%% for the companies.
3%%
This
is according to the
recently issued
annual report of the United
States
Steel Corporation for 1959.
securities
may not be
rather than any serious rise in the
third
force
operating so
strongly against inflation is to¬
day's more restricted rate of .wage
S.
be
lending "on
fice.
This
law
to
permit
any asset" would suf¬
is
what the central
banking authorities did not do in
1932-33 despite an earlier
legally,
"built-in" indemnification
de¬
signed for just such an emergency.
This, of course, is very serious
business and it should, be studied
with
its
greatest
care
by.
1913,
1970
the threat
see
1955.
the—last
decline
entirely
was
trast to
the
of
ever
put
the modern
on
sation
the
$3
This
*
instability
of those employed and those not
employed decreased, by only $2.3
durable
of
more.
In
recessions
side
of
to
for
goods.
the
three
has
amounts
inus
amount
„
the
'
consumpiion
•
■-
.
^,^mck and
/
*
'
automatic
economic
snub-
bers, shock absorbers, or stabilias may be preferred, have
zers,
served
very greatly to maintain
personal income in face of a de-
variation
chne
in
before
1940, and
Say's Law,
with
production
In
Deriods
in
accordance
as
production
j
lme<^
v
\
,
b"'^7!"
£?}_'° ^nta?JdL
accounted
of
the
about
for
varying
ranging
decline
70%
to
155%
of
investment
j
which
sequently,
post-war
required
following 1929 merely to balance,
had been reached in that.
That
was
business
THE
Al-
more
of
gross
national
the
of
than
decline
In
slightly
recorded
production
our
-
*
-
r
seem
is
our
three
postwar
For
the
in
total
the
of
wise
have been
to
true
of the
have
taken
more
which
recession
investment
-
Change in Total Production (GNP):
1958-59
-
4-5 7
Corporate Retained Savings..^,
Dividends—1
Government Transfers (net)..-,
'
"
*•-
Personal Income
Offsets:
Personal
Taxes,
Personal-Saving
Total
Consumption...
^
'
—11.7
+ 0.3
1.1
4-11
+03
—09
v
4-29.0
-V
!
*
.
/,
—
2 3
•
V
—10.1*
a
0.0V-.
:
>
1.9
i
.
-f .3.2
...
-
—
'
5.6
+
-
-f-53.1
:
-
0.0
.
*
Recovery
—16.8
Offset..
Stabilizing Forces:
Corporate Taxes..__
•
•
:
-
Recession, 1957 to 1958; In Recovery, 1958 to 1959 '
Miscellaneous
-
....
example,
1949
on
Recession
.
re-
cessions.
of
in
not,
itself,
still
reductions
.
of
liquida-
have,' occurred
i»57-58
-
It is this decline in GNP which
us the best single measure
each
inventories,
in
-
re-
gives
or
inSa!
recessions. do
(in billion of dollars)
in
(GNP)
three postwar
cessions.
to the
neater
inventory
AUTOMATIC ECONOMIC STABILIZERS
reduction
short
each
This
year.
enough.
new
been
.never
good
!*,
with
the
in expendiplant and equipment
has fully equalled,
exceeded, and V-
ture for
not
Busi-
stablllty their investment in plant
?? we^^^TrLticableThebr'ate
.!!
tions-
years
/
.
of
tnit tasfness lLder^wXstud^
^L b"? "esfn
in the
consumption also declined. Cori11
V~
for Maintaining Eco-
tbree
economy
V,1
Promoting: Attiue: ce
_
The
the
*
Responsibility
declined And
business
been
PrWeU ^
Stabilizers
The
has
- nas
oeeu
in each re-
with ::the result that the
nessmen
finance.
distinct
in
nonsumntiort
-
.
well maintained
very
-
The Automatic Economic
By this is meant that business
liquidation of inventories added
in
Thiis
ne-' '
K
"unstable"
very
times
-,
total decline.
to
eco-
same
Second6 Wod^War^busi- f6?*1? the leVGl °f output which for business
the
from
three
the
.+e sa™e
recession.
consumer
Such
be
course
and
new
41/^
10.
prospects for economic expansion
of a sustained character.
ness
the
in
The
there may be concern about the
inherent stability of the economy
as'
well
as
concern
about
the
of
each of
Bsslon?»
n;
as
In
Finally, as the result .of lowered
personal taxes and very modestly
re-
sending both production;,$0.9 billion as has been pointed
consumption still higher. As ;ouc. This was'd/decline;'of only
reSult, production gained much/three-tenths-of one per cent.
nomic
of
business for
plant and equipment and of
consumers
can
billion in face of this $16.8 billion
decline in production.. ;.h : py
maximum decline in output, in the
not
jobs in
and
is
:/
/
!
are
workers, losing
lowed,
a
expenditure
new
to
,
Instability can grow out of the
ordinary business cycle variation
in
pay-
declined
to the maintained level-reduced rates of
personal saving,
consumption, incomes increased total consumption* the. spending
sharply.-Economic expansion fol-., out- of income* decreased by only
the economy
m
Financial Causes of
the
wage
employed
recession,-amounting to about
billion? total personal income
^he Titian- feline ^ctrred^fhf sub^qVent eeSsion
from
the
0f
of
ability to maintain
of
of
amount
to
covered
in-
producing economic
amply as to pose <a
causes
solely
total
ments
recession, in conof $16.8 billion
national production,
decline
by only $5.3 billion. As the result
automobile year of of the still further enlarged payIn that year the two finest ment of unemployment compen-
"gadgets"
as
our
a
in total gross
automobile
will
decade
our
Instability
the
monetary authorities.'.
The liquidity of our
banking
system is adequate for some years
contrast, the three-year steel, ahead, but
certainly not beyond
wage
agreement
of, 1956
raised 1970. Because the
banking system
In
I
so
to
The
maintenance of the money
supply
been
a
end
So
Non
the
is nonex¬
istent at the present time and has
.
9.
increase
in
billion.
This
we produced
collapses of 1933, 1921, 1907.
1893-94, 1884, 1873, 1857, and 1837.
are
stated
has meant an automatic
by $3 billion.
of 1954 con-
recession
.
by
;
\vay
and
be
coming
1960s
the
impor¬
the
it:
as
ciai
tant.
increases have heen granted for
the ' productivity. factor • which
con-
caused
courage
the entire nresent decade
good assets and whether they will
be deemed "good" when a time of
economy
$0.9
to keen, the growth continuing for
au¬
as¬
ten
adequately,
national
adequate liquidity
which
per¬
in
as
met
not
the
threat
gener¬
legally
are
were
growth
emergencies.
any
significantly
the
;
today
And,
lacked
completely
depos¬
Federal Reserve
1949
of
fairly met until ord-breaking
or
crisis.
a
flation
ally without borrowing, available
to
recession
by
the
decline - in
the
duty" by pointing out sales of/automobiles as the reIn the past, of suit of a natural reduction in the
such dangers have never rate of sales following r the rec-
foresee
liquidity ratio of banks
comprises the. assets,
cash, re¬
serves, and U. S. Government se¬
quickly, and
this
with
act
In
^
The
become
the
.
creased in accordance with subsequent increases, in the: cost of
living index. Finally! wage rate
-
they were when lodged sep¬
arately in the individual banks.
curities in relation to total
its.
These are the assets
•
/
increases also-have-come
as the result; of escalation .clauses
whereby; wage. rates, have in,,T
came-in one year. I
compel the state banks to join refer, of course, to "36 months
the
(national) Federal Reserve to pay and power steering."
System.
States' rights won over ! ^ow in these three
economic
monetary good sense.
/
h
recessions with consumption fully
I do not think we will
meet, in maintained, after
liquidation of
advance, this future emergency?
inventory had proceeded, producAs a result, the crises which I can
tion
had to
recover.
As
gen¬
en-
the reincreases in
as
.Wage
.
to
System
a
r
sumption increased
economist, I shall have
resolved
they
We
found that the "pooled
adequate for
widespread financial
dozen
was
not
experiencing
inflation. The Federal budget
is today in balance. In
fact, the
only debt which has not increased
been
in
the expiry of the three-year wage
contract.;,.;/,-:Vv;:+*.'■;
economic
my
after
low
economy.
The bargaining has been mostly
for three-year contracts with ac-,
companying wage increases "disirregardless".\of, whether or not a
recession might intervene before
great danger.
course,
recession
suit of the constant
.
1970.
of the
in
now,
an
"done
after the
more
no
past
is back to the proportions which
prevailed prior to 1929 when the
reserves
as
the
the Federal Reserve
we
will
'V/V.V-:;v:.'a":;"'*.rV"
year.
can
But
fjigh
the
tire post-war.,period
100%.? of the
1957-58
•
•
In
years' notice I give I do not know.
83%.
System,
certainly greatly fa¬
by- that
expansion
ofcapacity from 1955 to
in
and
individual bank
was
we
acted
to
being granted by managelight
fact- sumption increased by $4 billion, ment, because; Jt, undertakes, as
have; never adequately
In the decline of 1957-48, con- does General Motors, to raise per
the past before a crises, sumption
was
reduced by only worker productivity steadily,
Whether,
(1) gold deval¬
latest
rising wages throughout the
•
be expected for
may
the
of consumption, in
largest degree, has resulted from
Tbe responsibility of business
for these economic recessions is
further sustained by the fact t':at
in the recessions consumer spendin& has either advanced or been
completely maintained.
the banking system by
for
full
a
the
J
.
report on
abundant
in
measures
for
in
decline
-
And
maintenance
0f the $3 billion
foreign investment
investment
by
business
then once again, business
accounted
j
should
.
abroad
process
which
at the banks
were
industrial
jtnus
months.
1957
in
net
the
tQ
reces-
early 1958. In these recessions as
we
have pointed out,
consumption has
been
maintained thus
forcing a vigorous recovery. The
part
a
decline
good time to avoid the great col-
liquidity is not at all enough.
The
uation
in 1960, the advance in total pro-'
reserves"
duction of more than $45 billion
cilitated
banking system
by
tribute
the
in
,
Credit"
difficulty, deflation,
and
collapse in turn produc¬
ing the Great Depression. Obvi¬
ously with our independent bank¬
in real terms and about 11% from*
eral
the 1958 recession low. This out¬
than
put rise
the
-v,
whole
This
/.
that year, we had tremendous eco^
formation
today,
we see
enlargement
produces a
There < is another deflationary very great risk for the American
force at work.
Our bank liquid-; economy
Happily we can await
ity has also been declining. The the report of the Committee for
liquidity of banks, as bankers Economic Development's created
measure it, in 1929 was 23%. After
"Commission
on
Money
and
by
That price rise
unfortunate, but
ol
mi.
•
This liquidity, of course, is not
Schumpeter. Plant and equipment
the liquidity ratio which an indi¬
expenditures rose by $9 billion
vidual bank might calculate in a
expanding bank credit and- in¬
manner
especially related to its
comes
without an
expansion of
own liability.
total output until the "period of
Rather it is the liquidity ratio
gestation" of this building of new
for the entire
banking system.
factories' ahct tools wais completed
For example, when we pooled
in 1958. Here we had an 8% rise,
in the price level.
resulting
<
post-war
un.
recession was about eight
moqths
in duration from its previous
national product deg biHi0n. If we at-
grosg
clined
lowering the liquidity ratio of the
;
Future?
tQtal
Total
or
still
were
hourly rates of pay for workers,
These wage rate increases have
-n jnventories taken as a come as the result of bargaining
declined
by $15<6 billion, in
a
growing but inflationary
ment
for both purposes. Consequently, this conversion may be
expected steadily to proceed with
financial
The date
'?
ing
follow this pattern, and they seem
to be following it, we have very
rate of inflation.
the basis of
on
support by the Federal Reserve
System) into reserves or for lend-
agreements
nomic
of the featured speakers..
was 1952.
one
extent that other wage
than
three
12
been
155% 0f the decline in total GNP.
,
savings
a
merit rather
annual increase in pro¬
ductivity of our workers. To the
average
the
sions,
the
maximum
recession
duration from high to low
has
for
accounted
business
Here
jn
each of three time is about 42% or barely oneThe
recession of
1954 was the
years,
That average half of the
large liquidity ratio natural
result
of
the
truce in
rate of increase of 8% a year for
of 83% at the end of World War Korea
and the very substantial
steel
workers'
wages
also - had
II, and will fall to the hazardous decline in Federal expenditures
prevailed for the 20 years ending level
of 23% by 1970.
for
defense , subsequent
thereto,
with the new 1960 agreement
Bank holdings of U. S. securi- yet the decline in business spendwhich so sharply reduced this rate
ties
are
primarily
short-dated, ing was $7 billion, or 70% of the
of wage increase, more than cut¬
consequently the prices of these $10 billion decline in GNP.
ting it in two.
securities
will
steadily, in
the
The reduction to a maximum
In the third economic recession
next four
or
five years, march
figure of 3.75% for the recently
gince the end of the war? that of
back to par.
concluded
agreement is, indeed,
1957-58
the
decline
in
investThey thereupon become avail- ment
much less inflationary. In fact, it
in new
lant and producers'
is almost within the range of the able for conversion (on their own durable
goods
and the invest8% for
1956-1959.
a
.
Since
eight years.
or
seven
liquidity ratio at the present
by
wages
14
about two-thirds of the
maximum
holding of
possesses
Thursday, May 19, 1960
.
/
.
y.
r—- 3.9
-
1.2*
-f23.9
«
»
Number 5952
Volume 191
.
.
The Commercial
.
and Financial Chronicle
plant and equipment out- out the $12.2
billion deficit of >
business.
a year or two ago and converted
the first two recoveries fol- it into an even balance in the
ii/ing the first two recessions present fiscal year and into the
instruction costs increased by ^.2 billion expected surplus in
hrnt 10% in each instance. The fiscal
1961 — corporate earnings
pSord for the recovery of 1959- have recovered sharply (by $21.8
fin is not yet clear, though it apbillion) and these funds have
Tears construction costs again are flowed to corporations. There
Ling.
they are rather automatically
If
business were
better in- used for the expansion of invep•fnrmed on the inherent stability tories and accounts receivable in
the economy, business in turn the recovery period.
^
Imild contribute greatly to re- ■ Finally, consumer saving** hiive V®,
to
in
lace
Fovc
J
(2177)
by
the
Our Reporter
_
on
pmtXutebweitty
^FiSy6
Woicingsth" greater ^stability
±ra
through a
maintained rate of in- lion and we
mainiaineu
O
into
GOVERNMENTS
BY JOHN T.
The
b'ln°an
appendix table
to .nfinn-nf invpctrppnt ures for cfixron
provide a steadier
the
yw
prs:
C
are
ing
SfcArs
de?¥on ol the Treasury to degree of conjecture
inescapable
the
of
Because
In
addrtton
this
to
*4°i S3 be
more
mwle will
ner.
thp
and
nerind
war
Only with the sharp rise in
the birth rate starting in 1946 and
each year since that
continuing in
date, we
material
are
McularlT
uuuidxiy
the
'
p....
™h!ch
SummU
■,
uie
of
the
ox
C
nThkelv
is
o n
to
away
from
that
that
are
of
scarcity
are
required
by the
the high
promoted
and
labor
wages
The large
soften
the
money
uxe
Sr way™
The
Automatic
I be-
end of 1960, is the period during nancial experts, may even be carwhich the Treasury usually spends ried to te point where negative re-
considerably more money than it
monetary
serves may
taKe* ia becaus+e tax payments are with
much lower at that time of the
■
The
in order that the borrowing needs
be raised in that month. The last 0f customers will be provided for.
half of the calendar year> that is The eage in the money market,
the time between July 1 and the which is looked for by most fi-
authorities
last
„
some new
f
Li
t
h
nrnviHpH
" y
-
h
*v
/
p
L°
u
the
a
become positive ones
small plus sign probably in
area
of $50 to $75 million not
to be unexpected.
™er there will be a decrease
.
the prime bank rate is still open
' to some question, although a cut
in
in the rate charged the banks'best
Rdt in Balance
s
The fiscal year ending on June
30th is still expected to finish with
a modest cash surplus probably in
the neighborhood of $100 million,
Even though this will be a very
customers on loans, as well as a
lowering of the discount rate in
the not distant future, should not
be looked upon as earth shaking
events,
l
,
,
slim surplus, it has meant that the
' J. A. Gugffolz Opens
Treasury has been retiring securities in the present fiscal year as WACO, Tex. — John A Ouggolz
Perhaps that should be quali- new money the Treasury will contrasted with the heavy borrow- is engaging in a securities busified by saying it is indeed and raise thru the offering of short- ings that were necessary in the ness from offices at 28Z8 Lrrimm
certainly bright for the first-two term Governments is open to a same period of 1959, because of Avenue,
'3
thirds of the decade, and that a
dark cloud may be forming at
about that time to threaten the
i
in
American independent banking
structure, a proper degree of li-
have
i
.
The
automatic
worked
as
well in the periods
the
Putting
recovery
of
record
dm? thi
hrirfiv
■wre
stabilizers
briefly, since the low point
total production was reached
veiy
in the
first
quarter
of
the
1958,
economy recovered by the second
quarter Of 1959
by a total of
$53.8 billion.
Nnrmallxr
mally, such
production
enlarge
rise
a
would
incomes
very'
and
However, of this total
total
in
greatly
recovery
but
$23.9
billion
was
questered" by the automatic
stabilizers,
shock
less
It is this increased flow
or
to
which
so
quickly and precipitously
diminished the Treasury's borrowing in the capital markets.
Inasmuch as private industry
can
hardly take
such borrow-
up
be construed as an offer to
solicitation to buy:
sell
r
NEW ISSUE
63,000 copies
these
2,LC
Pr00iems1 Available
upon
request to
The Bawl Street Journal
Macalester
College, St. Paul, Minn.
*-^n address by Dr. Upgren at the
24th Annual Meeting of the Midwest
Economics
Association,
Minneapolis,
Minn., April 20, i960,
>
Soarless Sixties Edition
.
Due June S, 1960
Doled June S, 1960
Fed. Land Banks
j; 13,11 JdOIICi lSSU6
as
increased revenues
Federal Government.
has
djqcu<?q
to
tai
billion
$15.6
ti
"se-
snubbers,
flowed
the
arrmlp
1
yy
is ii
,
Agent,
announced that the Federal Land
Banks have arranged to offer publicly on or about Thursday, May
12, 1960, a new issue of $154,000,000 of 4%% bonds dated June 1,
1960 and maturing June 20, 1961.
Price will be announced on the
offering date. Offering will be
made through Mr. Knox and a
John
than
a
of this decade. But we shall have
eco-
absorbers.
No
and
Wl11 come in the first two-thirds
perhaps
all
nomic
This announcement is to
^idity to finance the very substa"tlal economic growth which
Stabilizers
Recovery
T.
Knox,
Fiscal
group of securities
Treasury has retreated from dealers and dealer banks,
the
capital
markets,.1 we
have
> Proceeds from the financing will
seen in
1960, as a result, a very be used to redeem the $106,000,000
substantial
easing
in
interest of 2 V2%
bonds which mature
fates. In
fact, there can be con- June 1, 1960, repay short-term
jng with the rapidity with which nationwide
the
Price $1.00
iV
(iand that's a bargain/)
if you don't want to get caught short by
in which this announce¬
ordering in advance from W. W. Pevear, c/o P. O. Box
Subscription books now open, but hurry
an
oversubscription. Copies may be obtained in any state
ment is circulated
by
1807, Church Street Station,
New York 8, for delivery on June 3, at $1 a copy.
.
cern
eral
that this rapid
budget
rise in Fedmay
be
revenues
^odestly restraining
the economy
present time. Inasmuch as
wish the budget
surplus to be
at the
and
to
be
used
PerhaPs
borrowings, and for lending operations.
ai
_
•
1
•••
c
Form SniciS OCCUHtlCS
PORTLAND, Ore.
—
rities, Inc. has been
r debt reduction, the problem
Mpad
fne for the Federal Reserve offlces m the
System now to adopt appropri- engage in a securities
Shiels Secuformed with
Building
;
's
Mf3d,
ate
we
TnSU^".L.
,
'
addltion to the large increase
payments
—
increases
•Which
have
completely
wiped
and M. P.
President
'
r
"Vf-
business. Of
retary-Treasurer. L
was
Shiels, Sec-
T awrence
Shiels
formerly with Camp & co.
THE BAWL STREET JOURNAL
CORPORATION
to
monetary and credit policy if ficers are Lawrence W. Shiels, Jr.,
want, budget policy to apply
president; Roger D. Shiels, Vice-
n,. J_ax
that
$th fe- ^ailabfeto toe commer^l bankl
My
tween $3 billion and $4 billion to
research
13.
in
actions
new
over"a11 Pattern of rates-
spending of industry
and
development economy as the decade draws to a
brings forth new products that
That dark cloud is the malso promote expansion.
ability to maintain, given the in¬
herent
lack
of strength in the
for
t«^ture S1nce_the
be thrown out of
taking
Decemher cash needs out of the capital markets are concerned.
£*?
°f tlme' ? ^ evident This is taken to indicate that the
^^k°tXTewGunds rlgtt JgE fn^f
after the
fiscal period gets tw mnr^fnndl ^
ere nee
1U
plant and equipment
It is these
expenditures
could
by
sasfsvatsrs
f
additions
in
the quantitative terms of the auto- money for the coming fiscal year
future labor supply.
iG;
-v
matic economic stabilizers which which starts July 1, and this was
But
these additions
will not have served us so excellently in done thru the enlarged offerings
move into the labor market until
the three postwar economic re- of Treasury bills. The 182-day ob.'V-Vti
-./lid
cessions.
ligation was increased by a $100
about 1966.
. Ut'fV
The
intervening
scarcity
of >1
million last Monday and this will
labor and high rates of wages will 15. rThe Affluent 1960's Can Pre- most likely continue during the
serve
excellently
to. - maintain I .ib«IPitate a I97Q Pepression
coming few weeks, with the 26equipment
expendiThus the outlook for the 1960's week issue being upped from $400
plant and
tures.
is indeed good.
million to $500 million. How much
and
balance
ESaSXS WWBIHK
the
producing the lieve it is the first recording in week decided to raise
:
economy
•
for
X'-J
thfVare
'f!?
man-
lach^f thrtCVpo'stwar'ISetTreasury Anticipating Later
year. The next refunding venture
skins. ° The^ulleMn^wa^ plre^ared I
Needs
.llTlm^ot the^S
by Professor Harold Lunde.
a
in any direction
WXXXCI1
'
t
ZdJar!^toe
appendix following
onerftioA
upeiauuii
move
to
would^gai/beTook- wMch* operatlon ?L$646'00?'009: . The policy of monetary "neu-
nar-
1930's
the
in
birth
has
Acording to advices, it was not would tip the scales a bit too for
"rition in the May 15th re- either way.
g operation of $646,000,000
The policy of monetary "neu-
of labor until 1966-67, table, there has just been issued and capital markets.
;•
•
wages will be high.and, of course,
The increased offerings of
labor will be scarce.
letii? "Underw^
Treasury bills has tended to push
We are compelled to await 1967 ^in
Underwriting Prosperity
up the yieldg of these iggueg None_
for the first substantial additions V\js
^Yie^_sp^ Tf thZ theless> it; seems as though the
to our labor supply at the lower appp
?„a:thp now nf tht near"term market will be able to
working ages.
'tViiS nhVn^ in Z Lnnrnv digest these additional flotations
This is the result of the low which have taken nlace and
withoat too great an effect on the
of
obtained in this
authorities
that they will be in
ttaTmaf ^n^sSy. "Acwrd-
even though
tT*8-,," b6tWeen
MM
Shortage,
rate
the
in
to be veer¬
in the direction of
^ =
£
artsss;£Aa»
wrecLd
.
so
position to
heel of
+V.«
01 la°0,
q
more
monetary
be such
stabiliz- Government
Labor Scarcity in the 1960's seCond quarters of 1958.
Will Advance Capital Investmeat.
...
14. "Underwriting Prosperity"
12
12'
bit
a
thinking
appears
what is being termed "neutrality."
is evident that the position of
the
s-SiStss&rsss sys.-swufafc a
•mm
market
It
the fig-
automatic'
current
money
CHIPPENDALE, JR.
heels of the May 15th refunding
ra^ or m- ™ ana we are now paying
....
,
vestment. We are all convinced old age security and unemploy- operation did not enthuse the
of the very excellent prospects jnent reserves an additional $1.1 money market. It had been ex-
business
the
in
Neutral Credit Policy
ffiSSriSr.nt
.are now paying
deficit
budget.
A
«
large
very
29
(A Subsidiary of The Bond Club of New
Sole Underwriter
30
changes, we tend to revert to em¬
Most
3
econometric models which develop
the
input and output statistics for
of
or so
year
rived at my own
intuitive opinion,
which, for what it's worth, is that
sweep
for the next year we
will have to
undramatic,
somewhat vacillating state of pros¬
be
with
content
an
wheat
to
which
of
and
tend to leap
we
a
apocryphal, told
Vining Davis, who gave
story, perhaps
of Arthur
a
of
block
church.
Some
the elders
with
the
shares
Alcoa
to
.
later, when
years
thought of disposing of
after they had risen
the
shares
and
were
much
too
high, he
re¬
plied, "Do you think it is a Chris¬
tian thing to sell to others that
which you consider greatly over¬
priced?" Chagrined, they re¬
treated, retained the shares, and
have
become a
very,
very rich
Reviewing
is
The
expected boom of the first
quarter was quickly transformed
into but a boomlet as apparently
of
of
thousands
busi¬
of multiples
going from 8 times current earn¬
ings to 50 times and spanning all
sorts of industries and enterprises
in all stages of
development,
lieve
that
evolution, growth,
have
we
the
real postwar
the
1957-58
ery
marked
is
entered
recov¬
long
the
rehabilitation
war
true
and
of
end
characterized
be¬
period and that
the
This
I
now
recession
out
years.
decay.
and
period
recovery of
postwar
by
a
the
earnings multiples to a more
appropriate figure than prevailed
ficient, that industries had ample
during the quarter of a cenutry
following 1932, during which time
appraisals either in relation to
assets or to earnings were kept
capacity, that to carry inventories
cost good money, somewhat diffi¬
sion,
cult
flation and
the
nessmen
to
the United
was
to
get,
to
over
that
States
the
came
things
in
pretty ef¬
were
and
thing to
do
tamp down, rely on their
computers,
velocity
as
strike
inventory
have
and
well
with
Ailong
steel
country
conclusion
the
as money
the
this
left
some
velocity.
protracted
injuries in
which
those of us not on strike blandly
glossed over, so that a mild saucering out of volume in the second
quarter was likely. Nevertheless,
even though there might be sub¬
purchasing
consumer
power
down,
anxieties
then
wilderment
the
as
pected
of
great
be¬
the meaning
to
instead
upsurge
in¬
the great
the
by
of
the
of
ex¬
downturn.
The
general disbelief in the high level
of the gross national product, the
postwar
effects
of
monetary policy, and
the high volumes of business and
earnings,
shared by directors,
was
a
break-even
high
industrial structure,
our
is
which
function of mass pro¬
consumption. As
duction and mass
a
which
wartime
of
mountain
against
deficits
created
management, and investors.
enor¬
an
to
mous
system is now
banking
the
banking
structure
whether
needed to sustain
There
growth.
sup¬
can
credit
annual additional
the
ply
sup¬
desired annual
a
is
deficit
the
in
which
/to
our
not only
international payments
our
suddenly
cropped
up
amazement, signalling
the need for more discipline in
the conduct of our financial and
economic affairs but the ushering
in of
period of intensive foreign
The need for dis¬
a
competition.
cipline, accentuated by the size of
the outflow of gold, raises ques¬
tions as to how a recession, come
dealt with and our
ability to handle a sizable deficit
be
can
one,
which has become
our
present
ac¬
cepted method of dealing with a
diminution of our economic ac¬
tivity.
•
■:?>/
r;**•■>
Thursday, May 19, 1960
swing trader
profession¬
the
Conventionally
or
the
conscientious
fiduciary who wants no problems
are immediately,
unceremoniously
thrown
out.
*
Third, the conventional compa¬
nies
in
the conventional indus¬
This
group
naturally
con¬
stitutes the backbone of an*
sponsored portfolio was di¬
into two broad segments:
shelter and equity; the proportions
ally
vided
equity
portfolio and the problem here is
proper distribution over the three
broad categories and over as
many
industries
suitable for
are
as
the
presumably varying first with the size of the portfolio, with the main
objectives of the owner and sec¬ idea of picking companies that are
ondly with the phases of the busi¬ growing at a rate at least 50%
ness cycle.
Actually, most of the faster than the economy as a
time shelter was a reflection of whole. This compounded over the
the temperament of the owner and long term,
we
all know, works
the cowardice or caution of the wonders.
Fourth, the conventional com¬
sponsor.
The equity portion was
distributed skillfully over a num¬
in the broad cat¬
ber of industries
of consumption goods or
industries, consumer du¬
egories
stable
intermediate
heavy
Some special¬
panies in the foreign field. This
an
amalgam not only of an
analysis of the company to the
extent possible from foreign bal¬
is
rables and the quasi
ance
industries, and finally,, the
accounts,
cyclical groups.
ties
their way
ventures did find
or
in to
spice
still has
soundness but we should recog¬
nize that the industry groupings
are becoming increasingly blurred
classification
This
companies
other industries
and using extraordinary expendi¬
tures
on
research and develop¬
ment to get into all sorts of busi¬
nesses
and
criss - crossing
into
with
what
crossing
so
many
to
over
lines.
other
f-?
port¬
the
of
sterilization
The
be
folio in bonds seems to
per¬
a
of losing money and
manent way
catching the swings of the busi¬
ness cycle is more of a success in
the mind than in the
portfolio.
Actually
trusts
well
with 90%
now
and
and
but
obscure
also
income
one's
view
to the rate of economic growth.
In
countries
in
the
European
it
that
appears
the percentage
of national capital
investment is 50% greater than in
the United States, which means
that- the
gross
national product
should
grow
at a substantially
higher rate than here. The same
true also of Australia,
Canada, Mexico, and other areas.
appears
The
is the growth, the
rate, the better disci¬
pline, and the ability to use a
technology as fine as our own.
Fifth, mass consumption com¬
panies, or more particularly, lei¬
sure time, higher standard of liv¬
ing stocks. This envisages a spec¬
attraction
lower wage
ulation
on
where the expanding
discretionary income may flow,
reflecting the newer aspects of an
affluent
devoted
more
of
as
decades
several
over
affairs
their
handled
have
quite
investment
great
our
sheets
Common- Market
the list.
up
An
to
■
.
tries.
The Program
or
of money
superfluity
.
depres¬
by the suppressed
and
war,
by the great
first
then
point of
Para¬
few of them.
a
the
is
mount
the
of securities,
groups
spectrum
a
Risks
taut and there is concern
Postwar Period
there
to mention
ply,
Finds Multiples Are in True
drawn
church.
hundreds
.
a
timidly approached him
Of
litany of risks is extensive
and need not detain us other than
The
can
.
Typical Litany
Down
Runs
conclusion
lump all stocks to¬
perity, and abandon the somewhat gether and dispose of them in a
silly notion that a boom would single index. This concept, I think,
enable us to unload our shares on is unfortunate, causes a tremen¬
dous waste of time and opportu¬
to others at a fancy price.
nity, and is only slowly being
This dangerous, or perhaps un¬
eroded.
*
ethical, approach reminds me of
we
going to hell?"
it going up or is it
whole
a
with the question,
market? Is
preoccupation
"How about the stock
avidly to the
intellectual
erroneous
that
as
This
each
cotton
and
fluctuates
values across the
represents the basic
away
board.
not
cannot afford
live in the present."
"We
Thoreau,
lizers, monetary management, and
fearing that a financial panic or
other
stresses
and
strains
can
preached time
and again that apart from finan¬
cial or psychological spasms that
may hit the community, such as
tomed
stabi¬
built-in
ignoring
model,
ahead, and whatever
a
1907, a 1932, or a 1937, we have
other machinery we use at the
navigation bridge to pierce the essentially a market of stocks and
not
a
stock
market.
However,
obscurity of the course before us.
with
our
historical
agricultural
Having consulted these scientists
and the soothsayers, I have ar¬ background, we have been accus¬
a
past, we are condemned to repeat
its mistakes." Yet in the words of
phasis of the economic forces and
corrections
of
an
old economic
have
us
.
program. Of course, as Santayana
said: "If we don't learn from the
foundations.
Thoughts and Observations
page
.
dynamism of our society has solid
When
this rhythm
The Stock MarketContinued from
and Financial Chronicle
The Commercial
(2178)
equities, and yet have been able
to
be flexible
mass consumption
society.
amorphous group but quite
vital,
■
hang
over" stock
market values
not appreciated by
the investor, professional and pub¬
one
and if
they
tice,
industry to another. In prac¬
in an essentially common
stock portfolio, there is less inhi¬
Sixth, applied science companies
where
the
earnings multiple i;; is
subordinated to the gamble on the
ultimate breakthrough and where
lic, there can be a fatal weakness
in ownership. However, the credi¬
bition to
it
to
another
tor
to
the
ing bond
money
which is
a
others
and
risks
These
always
are
position also has risks, namely,
steady bias ,of inflation in a
modern economy where the con¬
sumer
price index pushes slowly
upward - but, equally important,
increased
where
leisure
and
to switch from
from
one
company
from
one
industry
another than there is
in shift¬
move
or
into equity
money
terrific wrench.
must
the
market
Estate
Building
means
that
active
This
breaks.
equities
the
Suggests Program for
recognized
little
support can be ex¬
pected for these shares whenever
of
*
be
institutional
probably
tranche
constitutes
capitalism of
cur¬
our
rent era, and by capitalism I mean
the
risk function where money
can be made and can be
lost, and
and, there¬
Roughly we have improved the fore, the need for increased in¬
stantial variance among
earnings multiple about 50% but come. Beyond that, where as pre¬
half a
dozen segments affecting 20% of during the enthusiasm of the past vious crises were generally solved
the gross national product—auto¬ year or so this went even much via the deflationary route, pres¬
mobiles, steel production, inven¬ further. We are now in process of ent-day crises tend to be solved
tory accumulation on the down¬ correcting some of the overexu- via the inflationary route. This all
side either from actuality or from berance in applying a multiple to adds up to making the creditor
expectancy; housing starts bot¬ what we believe is a normal earn¬ position less enviable than in the
toming out; capital expenditures ings trend, but I doubt we are go¬ past while the theory of full em¬
somewhat
upward;
increase in ing to return to the appraisals ployment has tended to make the
consumer
credit
peaking
out— which were so simple during the equity position somewhat less vul¬
there remain the two mainstays decade we have just left behind nerable.
of consumer expenditures which us. The supply-demand situation
Hence the conclusion is—
should continue their gradual rise of common stocks, buoyed up by
(1) The psychology of the stock
and
governmental
expenditures the persistent buying and more market has deteriorated and the
A modern' program for estate
building, that is, the accumulation
is dynamic paper as against static
tary development, but
which will maintain their constant
paper.
yet remains to be done.
Second, assets at great discount.
Habitually there are industries
member in all
and
companies which have fallen
upon
evil days,
sometimes
for
nancial
community and in all its
phases
and
temporary periods and sometimes,
alas, permanently. It is the job of
the analyst to separate the
sheep
preparation and selling of securi¬
flow.
With
this
background, the
less
or
permanent
increased expenditures
placement
on
the part of pension
funds, mutual
GNP should move towards $515 funds, and for that matter by the
billion by the year-end and there public generally in
allocating a
is
no
evidence
as
yet that the first
half of next year should show any
serious
deviation.
This
should
suffice
to
maintain
over-all
cor¬
porate profits before taxes in the
portion of its
well
as
life
to
as
reserves
insurance,
accounts,
and
government
bonds, is now confronted with a
new
factor, namely, that after
several
billion
tract funds where
and
variance
in
preceding
whatever the contradictions
compressions affecting a se¬
priate 5%.
years,
assured
of
consideration.
within
industries
companies
this framework.
There
hundreds
are
sands of
States
and
thou¬
enterprises in the United
but
the
investment
fra¬
ternity
concerns itself at the most
with
few thousand
ally
a
only
Following
with
these
a
and
few
fixed
on
bonds
ing
hundred.
companies
and
is a complex job and
security analyst, or a firm with
a
corps of security analysts, can
generally manage to keep pretty
a
close track continuously with
only
relatively small group, consid¬
As
yields
instruments,
a
more
appro¬
Naturally this will at¬
immediate and
is
a
preeminent
This alters the de¬
remov¬
few
a
months must
the
over
now
rear¬
their sights to appreciation
range
vears.
(2) The economic picture is sat¬
isfactory. It is less than brilliant
only because of the expectancy
which is too hectic.
they
now
have
a
of
well
an
inflation in the order
over
1%
more
the
relative
but
during
re-emerge
appears
things
are
on
variety
always
euphoric pe¬
the moment
the
horizon.
good, the convic¬
tion is general that the
nomics is working, that
new
eco¬
mass con¬
sumption is growing, and that the
desirable
tion.
com¬
Individuals
per
annum,
an
than
a bond
posi¬
cannot, via the
bond route, accumulate an estate
because of income taxes, because
of
inflation,
and
because
crises
invoke
not
inflationary solutions
deflationary ones.
and
The equity position
supplies the
for compounding of
savings
via the retained earnings and cash
flow working in vehicles which
means
have growth
cause
omy
potential either
be¬
of their position in the econ¬
or
the
techniques
or
uniqueness
of
their
both.
Hence it behooves
us
to have
a
the
and not
bet may be absolute
merely the fluctuations of
in the economy.
'Besides
guiding
now
would
pose,
their pur¬
serve
envisage
six
broad
First, substitutes for bonds.
In
this group banks,
finance compa¬
nies, life insurance, savings and
loan companies, can be selected
wherein the earnings yield is
greater
where
into
than
the
the
bond
,
and
in
due
goats
and
of
where
solid
course
assets
There will
disagreement
individual
but
a
current
as
prob¬
or
to
appropriate value
institutions.
are
as
some
sound
always be
to the fate of each
industry
diversified
selected,
or
company,
group,
profes¬
should
on
have
one
thing in common. They will be
selling at values reflecting a de¬
pression in their particular indus¬
try or situation
entirely apart
from the condition of the over-all
economy.
The
companies
are
So
the
are
the
fire
in
such
airlines,
nonferrous
and
a
metal
a
do.
Security Analyst
historic
analyst,
intellectuality.
rity
analyst
has
croupier to the
from gambling
This is a salu¬
a
great deal
The
become
secu¬
a
vital
echelons of the fi¬
is
involved
in
the
ties
and in the investigation and
purchasing of securities. The lan¬
of the security analyst has
become a common language upon
guage
which
all viewpoints focus.
This
discipline has acquired pro¬
fessional status in the complex
society of the United States and
new
I should like to take this occasion
to put down a few items for dis¬
cussion, not novel
new,
concerning
security analyst
influence in
(1) As
our
nor
the
in
necessarily
role of the
his growing
economy.
sophisticate he
a
inveigh against the
—the
idea
which
should
numbers game
many
of
the
public have that the stock market
is
an
crap game in
which it is entitled to make peri¬
odic winnings, more or less for
the asking, and oblivious of the
exaggerated
deeper factors involved.
posture.
it
of
the program,
things the security
transition from the
harm
no
number
less rooted
or
perspective, it was
only yesterday that we made the
casualty
companies,
rayon-chemical outfit,
recently
the meat packers, and so
on. These
are
the companies which
when
put under the glare of the short
a
In
the
average do well and yield a great
deal more than 5%
compounded.
These companies will all
other
can
This
the
more
Role of the
security
these in¬
overcome
analyst
The
to
great discount will
a
are
way
to
come
some
handicaps, difficulties,
lems, and again return
more
and
their
obligations.
conclusion that
available at
yields
find
assets
bonds
from
enterprise
there
segments.
dustries
The earnings multiples,
receding from the exuber¬
ant high points, will remain sub¬
stantially greater than the low
appraisals in the decade follow¬
ing the end of the war.
u.
(4) In an age of high income
(3)
while
where
an
equity position is preponderantly sionally
against
cloud
in
the
which bonds
since
sublimated
a
being
is over, hence equity aspirations
which contemplated a quick buck
aside
problem of immediate income for
taxes and
the assumption of a wide
of risks.
These risks are
riods
game for the time
leaving
resources,
of the pressure on the
institutional buyers for
placency of owning bonds now
that they give respectable
yields,
the
ownership of equities consti¬
tutes a heavy burden and
entails
When
called upon
for opinions
throughout the whole
range of securities, and worse
yet,
the
over-all,trend of the market.
meager
choice.
ering the totality of the problem.
are
return
income
of
equities
Nevertheless,
we
of
income
now
some
part
gener¬
industries
a
decades
mand-supply equation in
of
sav¬
ings
higher range, $49 billion or there¬
abouts, as against $37 billion for
the recession year 1958, and a $44
ries
to equities
numbers
of
is
a
There is
in
gambling. After all,
noble vice, but we have
racetracks
cially set
and
up
Las Vegas espe¬
to cater to this fun,
there it does not get out of
hand to the extent where it might
disturb the economy.
and
(2) The security analyst
through
Number 5952
191
Volume
.
.
The Commercial and
.
Financial Chronicle
(2179)
knowledge, his studies, and his
recommendations plays a most
constructive role in channeling
the savings of the people to
sehis
the investor have his resources
allocated in a full spectrum, from
solid equities to the spices of fine
adventure in space and science,
industries and enterprises,
(9)
security analyst must
and this choice! bjr himi
and^by^the teach the public that the value of
investing public reliects tne^ver
a common stock is not determined
satility and fiex 1 bility of a broad by taking the last quarter's earnlected
far better than would lngs multiplying by 4, and then
possible under a bureaucratic by 15 or 25 or whatever the Cl¬
The public should be edu- tiple may be. I have no
quarrel
cated to the idea that investing with the chartered accountant's
A recommendation for permanent
STOCKS
Bank
BY LEO
I.
BURR1NGTON
of resources is
activity, for
serious
the^mmvid^ for
Safandlhe community, albeit
that
have
can
report.
amp
one
a
zest.
(3) Let him educate the public
and
...
It is
mad!
precise and is
specific purposes, but it is
OllKcl-i+ii +
O
\
rt
the analyst.
report, one
4-1^
i»l..
-
_i
must
flow, which
I
consider
consider
cash
sig-
more
that they
should worry less about nificant than it is generally credstate of the market and more ited with being, and one must also
about the state of their own book make allowance for a factor of
the
portfolio,
or
and^ devote them- operating
selves to
n
funds> bazar P
basic
de-
are
FOR
THE
SAVINGS
v
weighty to keep common ings yield
hand
the one
on
glected
on
stocks
unauly
noi
ne-
are
a_great- body of
values^withi quasi veloping
stocks
common
currency,
can
to
used
acquire
properties,
activities, on a faxfree exchange basis, rounding out
companies,
improving utilization
of working capital, facilities, and
be
» the audit
report. In addition, the morphology of industries
the^ other. Common must be comprehended.
c
y
companies that
liquidity and ir
so
^
n.^npv
more
significant t
a
1
y'
credit, and money equivalents. As
9
must be refined to look
this
in
companies,
We have
just de-
new,
just having their take-
mature ones, rotating
static
and
ones,
Each
of
one
titled to
those
these
in
stages
ones,
decay,
is en-
tiple.
different earnings mulIt is fallacious to put them
an
the
ln
a
bed
The
made
haye
of Procrustes.
security analysts have
forays abroad and
sown
seeds
some
in
the
FnTeffidencv
fronts^he spreading of security analysis as
finn thJhnT taLn
Jin an idea in a few- °f the capitalist
fw '" It™
rtZ countries where corporate securi2
ties are finding acceptance in a
stocks wit
id ty o
a
on many
ni
niar
nn
va
fha
ha<=i«
growing
impnt
the
full
glare
1+1;.;
of
their
concerning
of
di'rppfnrc:
nnd
and
enlightenment
enteip
ses,
as
liquid wealth, highly important
^necessary m a dynamic
cie*y'
so:
(5) In view of the rather wild
and
wooly approach of the public
authorities in anti-trustism, it ap-
pears
that corporations will have
great
difficulty in vertical
ket-
investment
mar-
This has been constructive,
JJ .*be
®
i
J ^
hiding company stocks has
^is^ncl
Llder gSn
vailing
U present under
conditions
ch{?f^®nlrtie^a+lrS ^fn+ii
^
the cold
world.
war
and the
This
factor
anaiv<!t
mel
+hp
ram"
Hnanrial
^
aMly!t s3d **
enterprises
fitting in
and
activi-
ties most suitable in comDlement-
ing
or
improving
end® that
other, to the
increased
one
and
long
facet
cash
tprm
an-
or
fl!w
™
"J-
^vlSutiom
+
past
vear
over
the
public
order
to
holding
in
and
of
and ln 11
m y become
benefit all
riirppt
himcpif
'
1 (. ,V°rPora^tions blocked from
tn
a!11® dombstically may have
annlvSa
ere
security
nanip^ ' overseas
as our knowledge of comu
es
p
pn
1
*;An
can
be
aPPr°Pnate marriage broker.
fS ing asPect of an ex~
vrhnn«
have
of
the
fi
September,
funds
ropphipd
of
addi-
"windfall"
-zr
for
n
4.
the
original
a
hold
to tte cmgrnal hold£
?se. 9
restricted
browned
aw^vs
to forego
The
of the
companies
some
competition,
gains.
controversial
holding
an(j as a national society of
company's
report must
tK
them.
An annual
not only illumine with
must
,,
^
.f
other
ould
register
the
^
thoughts
educate
of
the
the
4
ThC SeCUrUy analySt mUSt
investment counsellor
be
an
01
and loan associations
broad way
and advocate
a
that
potential,
of their al-
lowable
12%
bad debt reserve.
The Mason Bill covers all savings
and loan
financial
associations
institutions
called "tax-equality"
and
other
as
so-
a
measure.
Ac¬
tion on these measures probably
will be deferred until 1961.
income minded and
more conprobably will
holding companies as
present
consideration
for
their
funds. For those who can afford
servative investors
If^ends" haV6 P3
dividends. ■
these to withstand any
holding companies will be
able
avoid
,
the
to speculate
C
on the
possibility that
weakening
.
Competition for savings is par- 0f their growth potential, neartk:ularly sfron§ in California. Al- term appreciation potential may
though this competition is mamly be considered sufficient to attract
.
from nonhoIding
and
Ss were commercial
concerns,
company
sayings their funds.
^oan. associations,-the large
have
banks
high
in
course,
Proper timing is, of
important
an
the
State
tion.
of
their
commitments
proportions
diLuuniiur
uvei
ouy0
State's association assets.
me
banks
believed
are
eacn
to
These
issues
considera-
long-term
as
believed
are
be
to
until
nave
accounts than
even
a
savings
more
be mutual in
c
S
w
&
t
owner•
n
L
r
associations
in
1959 financed 40.6% of all
home purchases and continued to
strengthen their position, as the
largest single source of home
mortgage funds. The percentage
BOSTON,
Mass.
Ay bU11
38.4%
was
in
1958
future,
and
California growth far
outpacing the industry nationally,
There is no question concerning
the growth status of this industry
ip the foreseeable future. History
for the holding company association set-up is too brief to detect
whether they will enjoy a faster
rate
of growth than competing
'
scope
On
-
June
1
Townsend, Dabney & Tyson, 30
com-
State Street, members of the New
bined total overshadows the total
York
°f allt-°f
sociations
Ganges, will
a"d '0an.haS"
California. Nonetheare
,
com-
ing the above three banks
bined, thus the four banks
in
•
Admit
alone has savings deposits exceed-
less, the associations
i
H VftOTI
r
only
mnct
wnr]f
buJ must work
Price
each
understand
and
Boston
Stock
Ex-
admit. Donald
,
,
W.
.
Blodgett to partnership.
enjoying
faster growth rate aided by pay-
a
ing 4V2% to depositors in contrast
to
the
present 3%
commercial
generally
has
Earnings Comparison
First Quarter
maximum for
banks.
The
public
favored
long
con-
venience to high returns for their
savings which explains why
tute
banks
still
Leading
corn-
N. Y.
participate in
The more as-
are
vulnerability
ever,
such
accounts
funds
are more
is
of
Request
on
Laird, Bissell 8 Meeds
Members New York
since
Stock
Exchange
Members American
retaining
greater
City Banks
Bulletin
attracted
by a
higher return and they are sufficient to account for the higher
growth for the associations. Howsavers
Stock
Exchange
120 BROADWAY,
likely to be shifted
NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell
Teletype NY 1-1248-49
Specialists in Bank Stocks
NATIONAL AND GRINDLAYS
BANK LIMITED
Amalgamating National Bank of India ltd.
an
26
f n°
"the^Nationaf
Societies,
Total
Total
Price
Assoc.
LONDON,
E.C.3
]
•!
Branches
54 PARLIAMENT
Loans
Savings
Trustee
$568.7
$508.7
2,267,540*
26
6
597.9'
509.7
457.0
6,150,000
14- 7
10
14
372.1
317.7
311.3
46-29
46
11
272.3
220.4
212.1
California
_—
25
1
151.7
133.2
117.7
20
1
100.6
87.5
83.4
1,260,000
976,395
Financial
—
Financial—
6
8
3
81.6
67.1
65.5
23-13
19
1
62.3
54.5
48.8
Nairobi;
Ins.
Travel Dept.:
1.382.973
29-20
20-13
26-15
Corp
Depts.: 13 St. James's Sq.;
Rd.,
St.;
Dept.:
54
and a*
Parlia¬
13 St. James's Sq.
4,781,280*
Charter financial—
Financial
ment
Outstdg.
$560.8
'
SQUARE, S.W.I
Govt.
Assets
62
Federation
STREET, S.W.I
13 ST. JAMES'S
Shares
7
63-33
Western
Trans-World
"
Total
Diego Imperial Corp.
First
San
of
Financial
Great
Wesco Financial
Financial Analysts
New York City, May 16, i960.
of
rtn ay
Office:
Head
BISHOPSGATE,
London
—December 31, 1959t—
Recent
1960-1959
aAffvelv to-
Financial
Convention
No.
Range
tarians.
eration
earnings
total deposits in savings account subject to greater question
savings andxloan associations are and state-wide branch banking is the outlook clears,
stock owned. Out of some 225 convenient. Security - First Na-
if we are to fulfill our
leadership and thwart the totali-
Aniuial
attrac-
^ ^arge P^rcentage of California
Gibraltar
also
Lo
the
,
not
,r,es ar|d balance sheets, but gether
main
be
to
'tal loophole'whLh
doubles
~
over
can
„
.
1
widely
also
threat
maior
a
.
fussing
and
Bill
Mason
considered
could
should more attractive returns be
nip* te-e
+
shares between compaeducational task mutuals. Investors are well aware available elsewhere.
Dianf1- Sa '°f
building of of dispelling the ignorance and that growth industries do not auThe mortgage market outlook
uabl
^ .reign fields is that val- misconception as to the nature of tomatically characterize individ- may be boosted by Congressional
salu*ct ti°reAgn
exchange can be our capitalistic institutions.
ual companies in such industries action on pending legislation in
as
Comm1on stock so used
we
as
financial
and
security as growth stock situations.
the housing field.
Interesting is
rrp^n"ey4umay eap over an ln"
nf Ihp fpw fxrouos
ciease in the
For what
may be worth. eiSht the recent testimony of a Veterans
balance of payments analysts are one of the tew groups
^ the twelve leading California Administration
official that the
lclk
1
I
equipped
with the background g & L associati0ns which are non- home loan guaranty function no
(7) Let him also exercise his and
comprehension to do this. If holding company controlled out- longer seems justified.
influence to make the annual rewp
are
to better the quality of paced
the four associations of
The holding company expansion
P°rt a
more vital document and
holding companies during 1959, freeze enacted was a temporary
+v
nnhlip and noli' 1J
jot a smooth, slick tranquilizer. our society, the public and poll
The analyst
The Leading California Holding Companies
should influence man- tician and the modern corporation
agement to undertake real dismust understand each other; they
Approx.
SW?™ 0f pro!?lems' rather tha"
on
Policy is expected to be restrictive.
Most of the leading c?mPani9s
bave declared 5% st°ck dividends
*n rec.ent oionths and Great Western Financial as well as Financial
attracting savings.
+
emDlovId
and has generthe temptation
future rewards for im-
discussed
mortgage market
has found
institution
as
an
ogre
in our
midst,
not unlike
the position
taken by Marx a hundred years
ago
against
private
bourgeois
capitalism.
I should hope that
the security analysts as Individ-
1
has
give!
or
Last month) Rep. E. A Derwinski,
The advisability of putting Republican from Chicago, introfunds into this new avenue rests duced a surprise bil1 to-deprive
largely on weighing such factors holding company-owned savings
mercial
and
nremLms
on
ereatlv
funds
which have been
pur-
been
has
est California holding companies.
ents and also 411 infbrrned as to
great strength
undertake the
income
brokers'
ally cautioned
presented includes the eight larg-
projections indicate a growth to
50% by 1970. The rapid growth
sinCe the end of World War II
uajs
current
being sold to the public. The table
•'
•
tobetakenimmediately
not
int0
mediate
formed hold-
holding
the essence, views the corporate
with
■
increases,
in
the
tional associations and provided
^ ^tionallv
Nationally,
nro-
imse11;
around
n
in
nurchase
tne in
an
can
thp
the
against
freeze^vhich
enacted
to
succession
race
company
bu?ln,ess which help train person- SOciations to
ran
analyst
ranid
holding
offered
were
the
win
During the
dozem
a
issues
company
and
terpreter of it; are original and
grams can
bp
undprtakpn
Thp
significant features of our present
concent
of
fittina
pnnvpritinnal democratic corporate capitalism,
businesses with growth artivitipq The public, however, not compreis pertinent and
hp hplnful to
hendin§ tbe evolution of our sysboth
This is
infprPQtinS nhp- tem» continues suspicious of the
nomenon in modprn nnrnnrL rlP
corporation. The politician, partly
velopment to whirh thS sprnritv taking his cue from his constitudevelopment
iqS
scientific revolution, and the nation out of the 6,500 total,
the growth in 9,uallty a1d
thus the general public has rightly
ber of ou,r. fr?dVa f sc
of believed the savings and loan as1
stocks
pro-
? So'^ 1°™^ the largest of the,mutaalAs &. L
associations throughout associations. Bank of America
™
?n0S1£2n
is
rp^arab
n^nnfn!
"a
mortgage return
has raised the minimum
^
^
compa-
The security
attempt to influence the creation
of such
circular institutions bv
n.iHna
c
+hP
uiey
large numbers of circular
?
California-domiciled
in
dividend
the vulner¬
to
fees' discounts and other charges
on
foans deferred receints which
triJ? P°tential grfw^h; div.idend
ol'ri
nf'iftah
j
au-
higher
ffhLTaken'rtU'to'm^ke
com-
ing S & L holdings
?
Q
rwn
ruritv Torn
competition.
-fv
st0ck
as
icwq
JS Pp Ip^\P
pnmn
in
cu-
growth in California is a
cedure wherein guarantee
Lw c,™i?
^
Lrpioi hanE .wlj
n?nc101^"
H
hold:n{?
coexistence
nf^e ?ntJl?ectualhv^of
device with its greatest
growth, the share of holding company participation, and the outlook of regulations and additional
legislative restrictions and these
influences on per share earnings
growth.
Today's reported earnings are considered evasive of
for
of the
is
a«ume
character!7in/fbf«P
Most
important
pre-
Attraction
Jai^ff C0]^fwho Sn
1959
an
c^sidemMeTn'
£s,]ldJrable ap-
of
the accomDanvinu vulnerable risks
went
areas
b°me mortgage
Panies'
concep^ 0f security analysis and
public reporting in the other inbe
has
-
The savings and loan holding to attract savings,
COmpany
stockholder funds, the chased by the newly
i
savings and jng companies with
was
^ugtriai
dividends
squeeze,
.
naUy
could
,
.
Board
the advertising of high
on
constantly
able
both in proportion and in growth.
savings and loan holding com- Savings accounts increased 35%
Pames is one of noticeable resur- vs. 19%, assets
grew 42% vs. 26%
gent activity. Several of these and the number of shareholders'
shares have climbed to new highs accounts rose 33% vs. 17%. Needwhile the depressed shares of one, less to say both of the
growth
San Diego Imperial Corp., have records for the year are attractive
been among the high volume is- ones.
should be continued, inculcate the
and other ef.be made to
hor-
or
public
HOLDING
CTrrent^ the market for ^
flnJQi
few
a
LOAN
.
,
the Federal
security analySystem tries to see to it that sis, emphasis is tending to shift
money and credit are on a sound frcm the pat dividend
yield ratio
basis, the analyst fraternity should to an earnings yield and the earnits
and
The
rates, has pointed
AND
COMPANY STOCKS
tehg deve^onmenteiV|rCh 3nd long"term chane<?
1Stoc!c ^x~
development plans.
ge. The present interest pos(!0) Through the work which
J Je ?®'LdeY(el°Pments unReserve has been done in
(4) Just as
use
Bank Stocks
fall
n
q
profits which
OUTLOOK
—
restric¬
& L associations in
months.
frowned
This Week
regulating
more
rt
Besides the earnings
-
This
has become
recent
not
'
♦
Board.
tive toward S
in.
1961.
legislation may soon be forthcom¬
ing from the Federal Home Loan
agency
ronsensus,
rearranging
expires May 31,
BANK AND INSURANCE
be
and
which
one
31
9-
•Convertible debentures outstanding.
,,
Jin millions of dollars.
1,430,000
675,675
Bankers to the Government in'.
ADEN, KENYA#
UGANDA, ZANZIBAR & SOMALILAND
PROTECTORATE
Branches
.
in:
INDIA, PAKISTAN, CEYLON, BURMA, KENYA.
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN,
SOMALILAND PROTECTORATE,
AND SOUTHERN RHODESIA
NORTHERN
Banks Want
Do Commercial
Equality With Savings Banks
Continued from page
mutuals
extending to the
to
able
11
and privileges enjoyed
few dollars which our Government
by commercial banks. This would
might collect by taxing the earn¬
include equal branch privileges,
ings needed by the mutual savings
equal lending powers (including
banks
to
promote thrift worth
the power to make personal loans
what they will cost our country
and installment loans), equal trust
in the reduced ability of those
powers and the right to accept de¬
institutions to encourage savings
mand deposits and personal check¬
and in their reduced ability to
ing accounts. In short, we would
who need
all powers
them
small savers
the
and
them
with
return
them and who
the maximum
safety upon their
desire
from
derive
small savings?
of banks,
types
two
really
have
just as' we have two types of in¬
surance
companies: a stock cor¬
mutual cor¬
poration type and a
poration type.
savings
ment
thrift.
encouraging
of
purpose
segregation of
function from the
That would entail a
savings
functions
the
tax
income
Such
treatment
tax
income
Federal
the
function, the same
cerned.
which the Govern¬
accords the mutuals for the charged
their
serve
Chronicle
Commercial and Financial
The
.
.
,
Thursday, May 19, I960
(2180)
32
with
is
in
not
the
of
of
part
any
con¬
bank,
spect
of
been
earned from the investment of de¬
considered
is
having
as
a
competition between sav¬
there is
ings banks and commercial banks.
The commercial bank should be
to
allocated
be
to
expense
to
or
to borrowed money.
purposes it is regarded, as
depositors
For tax
or
granted as broad powers as are having been earned expense free
and tax free solely by the stock¬
granted savings banks with respect
holders and is available, tax free,
to the investment of savings de¬
to be paid out to them or to be
posits and they should be subject
added
to
the net worth of the
to the same restrictions. To the
commercial banks
bank. Just the
the earnings from
with
extent that the
not devote
did
benefit
the
to
these
of
investment
the
deposits
savings
of their
the
through
stockholders—either
No
bank's operating expense. None
it
commercial posits as distinguished from the
investment of the net worth. In
because it is only with re¬
to the savings function that short, no part of this income has
other
chartered, for the judgment of the
states themselves whose creatures
those mutuals are.
opposite is the case
earned
life
by
the
favors
compa¬
in tax treat¬
nies. This difference
ment
income
such
insurance
to
respect
mention
I
bank.
would
one
challenge
the
right and the power of Congress
this. But if it does do
do
to
would
still, it
to make
provision for
some
that
and
reserve
made
banks.
for
loss
a
provision
hardly be less generous
one
it, it
have
seems to. me,
the
It ought to
could
than the
commercial
be much
more
in fact, because of the
maturities characteristic of
generous,
long
the bulk of the assets in the port¬
of the mutuals, the
sus¬
folios
,
ceptibility of those assets to wide
fluctuations in market
value, and
the greater
difficulty of determin¬
ing, except over a long period of
time, the actual value which the
will
mutuals
realize
from
those
assets. We know from bitter ex¬
it merely because it, again, illus¬
commercial payment of dividends to them or
Questions Commercial Bank
trates a difference in tax treat¬ perience that losses in these assets
Friends
banks would really like this? For through the retention of earnings
in
accounts
which
enhance the ment. And again I say that there may not show up for years, but
Now a
word or two on
this the equality to be really complete,
those
losses
may
have
been
book value of the stock—the com¬ may be very good reasons for the
the commercial banks should be
tax question which I should like
;
mercial banks should be permitted existence of the difference.
| incipient for a long time. Because
required to segregate their sav¬
to direct to my commercial bank
of the nature of these assets and
to retain such earnings tax free
I have gone into these matters
friends, particularly those inter¬ ings deposits from their other de¬
the impossibility of determining
for margining the growth in sav¬
solely for the purpose of remind¬
posits. This might handicap them
ested
in
building
up
savings
their
ultimate
value
prior
to
in using savings deposits for short ings deposits in the same manner ing my commercial bank friends
departments, who may think that
is
applicable to the mutual that if the commercial banks con¬ maturity, a mutual can actually
term lending. They might have to as
the method of Federal taxation
applied to savings banks and sav¬
ings and loaq associations is un¬
fair to those commercial banks.
will analyze the effect of
tax differential on
If they
so-called
the
their ability to compete
with the
savings banks for savings busi¬
ness, they will find that its im¬
portance derives from the differ¬
ence in the manner in which the
of institutions dispose of
their earnings. To the degree that
two types
the
if
wonder
I
savings de¬
the bulk of those
use
posits, as they should be used pri¬
marily, for the purpose of making
home
morgjages and other real
mdaBpiges and for the
estate
long
making
of
pose
vances
pur¬
term ad¬
borrowing re¬
to meet the
quirements of industry and of our
divisions of Government.
various
May Get More Than They Figured
savings banks.
tinue to attack the mutuals on the
only the earnings which are
derived from the savings function
basis
It is
following:
(a)
because
the
of
nature and
greater earnings,
difference in the
maturity of the assets,
(b) lower operating expenses, be¬
savings banks are specialists
in savings, and (c) no need to pay
earnings from savings deposits to
cause
stockholders in
dividends and
need, consequently, to
corporate
income
tax
pay
on
no
the
such
my
be
subject to the Federal
commercial
bank,
the
If
tax.
Federal
income tax
higher interest
savings bank can
operates also
the
rate which the
pay, but this fac¬
in
factor
important
an
as
the
earnings
upon
commercial bank activities and not
from their savings department ac¬
tivities; and the savings banks do
not compete for this commercial
bank
A
question that I would like to
for
the
benefit
stock¬
my
for real and total
its in
a
equality. Depos¬
commercial bank and in
mutual savings bank
are
a
actually
borrowed money. The commercial
bank borrows money from its de¬
positors for the
a
of making
profit upon it for stockholders.
It is this
Government
taxes.
The
mutual
Savings bank does not borrow this
money for the purpose of making
a
profit for stockholders; it has
stockholders.
The
money
no
earned
upon
the
comparable
corporate
commercial bank. If,
to
the
profits
The
selves
a
commercial
enjoy
certain
preferences
of
aware
am
the
possibility
Government
a
treatment
by
many
which are not enjoyed
other taxpayers. For ex¬
up
a
bad debt
the earnings out to serve out of income before arriv¬
depositors and let those earnings ing at taxable income, although
paid
If the commercial banks should
total equality, they
would have competition in all as¬
pects of their business, and, since
the
and
income taxes
on
the
earnings
used, it might well be able to
so
under-price the commercial bank
on many, if not
all, of the services
offered by it.
I
do
not
advocate
equality
of
revenue
savings
from
the
banks
subject to the corporate
I would point out to
are
income
tax.
the
undisturbed.
not
think
In
other
that
the
Points to Another Consideration
Now, there is another approach
to
so-called
"tax
a
dollar taken from the
reserves
which the mutual must have if it
is to encourage growth and there¬
against otherwise taxable income, fore that every dollar in taxes rep¬
passing on, in effect, 52% of resents a high multiple of that
those losses to the general tax¬ dollar in savings which the mu¬
payer.
On the other hand, the tual can no longer entourage. For
.thus
commercial bank is taxed at only
the capital gains rate, or 25%, on
its net bond profits.
business
their
and
great
appeal
essentially to the same elements
of the population, they have much
in common and they should work
together even after the
them because of the
closely
attacks upon
fallacious
have
issue
tax
ceased.
Federal
•/;
The
Chartering
particularly
advantageous
savings facilities of the mutual
savings banks and the savings and
loan
more
should
associations
even
be
made
widely available to the
public than they are at this time,
Savings and loan association facili¬
ties
are
already fairly
widely
banks. Some
machinery should be
of
under both Federal
law, for the two-way
and,
State
and
combination
or
conversion of
sav¬
ings banks and savings and loan
associations into each other's type
organization, where such com¬
bination
convention would best
or
interest. It would
the already
the public
corporate
this
taxpayer
favorable
The ordinary
is
not
treatment
given
and
the
only
a
difference
in
tax
payers
that exist
in
the
Internal
Revenue Code. I believe that there
equality"
tween commercial banks and
tual savings banks. That
be¬
And
let
us
consider
the
favorable tax treatment in
more
one re¬
be
$1 of earnings needed
by the mutual to
growth taken by taxes
retained
turn
that
the
Should
in
$10 of
mutual
new
sav¬
a
our
Government
resolve
to
take
never¬
in
part of the earnings which
the
1951
Revenue
away
Bill
Con¬
offer the
to
various
be
to
states
presently be
small saver.
(although I
would
not always
so), but it ought to be possible
work
it out
at the
Federal
that
that
need
level, if the trade associations of
the two groups will cooperate to
this end.
needs for reserves
protect the
depositors, it would in effect be
permitted
saying that in 1951 it had allowed
tions
reserve
to
accumulations
in
excess
of what the mutual needs. It would
be
substituting
ment
as
to
the
its
revised
reserves
judg¬
required
for that of the
trustees, directors,
and supervisory authorities
who,
I should think, because of their
familiarity with these institutions,
are the best judges of their
needs;
com¬
able
gress,
after advice from super¬
visory authorities, said the mutual
is
insurance
special advantages
which each type may
hope
theless
taxes
away
closer
life
method of mak¬
It may be very difficult, if not
impossible, at the present time to
accomplish this through changes
in
the
individual
laws
in the
to
spect, at least, accorded banks than
accorded
some
ing their charters interchangeable
without
having to
do
great
then every
taxpayer enjoys it to margin
minor degree. I do not point means simply
this
banks, that it should be possible
to work out
violence to the
reserves
individual
out
to me, because of
seem
if a proper margin of
safety for savings deposits is $1 of
for each $10 of deposits,
example,
association
and
Nothing,
tween
however,
should
be
to drive a wedge be¬
the two types of organiza¬
by those who basically,
and
"tax equal¬
ity," are trying to destroy them
for the benefit of the stockholders
under the false cry of
of the would-be destroyers
the
depositor
and at
of the small savings
expense
of this country.
HI
greater
mu¬
panies under the Internal Reve¬
approach nue Code. Any income derived by and it would be
substituting its
ity," then they should in all fair¬ would be the one of
according to a bank from tax-exempt securities judgment, in the case of
ness say that they would be
many of
agree¬ commercial banks, with
respect to is totally disregarded insofar as these
mutuals
which
are
state
strong
similarities between their types of
existing great similarities between
the mutual savings and loan asso¬
ciations and the mutual savings
The
taxpayer.
ings.
do
each
the
is
individual
commercial bank is also permitted
to charge off its net bond losses
must
I
of
Because
dinary
treat¬
less
other.
close
a
with
serve
ment with any
words,
liaison
cordial
and
Government, however, that
every such dollar it takes in taxes
implication that it
mercial bank and the mutual sav¬
is "wrong;" I merely state that it
ings bank have their unique places
is a difference and only one of
in
our
economy
and that they
the many differences among tax¬
ought to retain those places more
this sort, because I think the com¬
or
savings and loan
associations must maintain
this privilege is denied to the or¬
be taxable to them.
real
the mutual
and
banks
some
mutual
which
does
it is
in concluding
remarks on Federal taxation,
the
mutual
savings banks
derive
re¬
it
mutual
because
say
earnings.
set up to make it possible for the
chartering
of
Federal
savings
some
may
are
that
the
tax
those
day take the position that it must
our
permitted to set
pay
hardly
first
reserve are
of
,
I
them¬
banks
loss
a
out
available, but that is not true of
the facilities of the mutual savings
ample, the commercial banks
this
nevertheless,
the commercial banks insist that
those retained earnings or reserves
be taxed on the ground of
"equal¬
presented.
concerned.
that
with respect to Federal income tax
tax
of
is
Refers to Commercial Bank
Tax Advantage
that
this
Savings Mechanism
this borrowed money is all paid
way
on
Warns How Tax Can Harm
out to the
no
the
of
attitude
from either one or
standpoints which I
question
differ¬
these
are very
good reasons why banks
savings banks ought to invade the
creditor-depositors (and functions of the commercial bank enjoy this special Federal income
is taxable to them) except that nor do I think
that there should tax treatment. I believe that this
which must be retained to antic¬ be
any
further invasion of the special treatment is in the public
ipate losses and, therefore, to pro¬ savings bank's function
by the interest, when one considers the
tect deposits. A tax upon the re¬ commercial
nature of the banking business and
bank, but, if we are
tained
the fact that banks have such a
earnings
of
a
mutual going to talk about
equality, let
savings bank would be essentially us talk about total
so
many
equality all the large investment and
a tax upon reserves and a
tax in way up and down the line.
dealings in securities.
on
their
reconsider
tax
mutual and the commercial bank
Again,
not
purpose
profit which the Federal
in the
reasons
for
I need
commercial bank
proposition that they
the
would avoid the tax to the extent
holders.
commercial bank friends
is whether they realize that, when the mutual bank would not have
they talk of so-called "tax equal¬ to set aside a large part of its
ity," they may be inviting a de¬ earnings for dividends and other
mand on the part of the mutuals benefits for its stockholders, plus
put to
interest
are earn¬
of
tax¬
aside
H
in treatment.
ences
other
although
that type of institution has no cor¬
porate profits in the sense that a
stock
corporation
has
profits
get
business.
there are,
public
accorded
tax treat¬
particulars
taxpayers.
valid and sufficient
which the Fed¬
eral income tax is levied
held
earn¬
the tax treat¬
a
Both of
these
Presumably standpoints are entirely logical
insofar as Federal Tax treatment
in the view of Congress,
of
additions to
my
really are—
unless
adequate
year
not
I submit to my
friends
tor, also, derives from the fact that
(or retained for their benefit).
which most commercial
banks pay the corporate income
tax is derived from their purely
ment
certainly
payers.
both
ings (derived mainly from the in¬
vestment of deposits) paid to or
on
that
from
have
resulting from the fact
that they are paid to stockholders
Moreover the bulk of the
cial banks should have
particular
any
set
what its earnings in
know
never
an
ment different in some
with differences in
be¬
stockholders. The
the Govern¬
types of busi¬
there
that
derstand
InternaJLRevenue Code is replete
no
earnings
ings
(without
ness
this burden upon its earnings
it has
which
by
ment taxes the two
holders. The savings bank escapes
cause
a
attempt to un¬
may be valid
through
the
segregation of its reasons in the public interest for
savings function, can show that it the existence of the difference),
has no such earnings from that then they may leave themselves
function, then it is in precisely open to challenge with respect to
the same position as the mutual the favorable differences in tax
savings bank and should, with re¬ treatment which they enjoy in
gard to that function, receive the comparison with many other tax¬
same
sort of Federal tax treat¬ payers—notwithstanding the fact
ment as is accorded the mutual that it may be, as I believe it is, in
the public interest that commer¬
savings bank.
should
commercial bank
the commercial bank would pay friends might find that they had
these
earnings
as
interest
to gotten a good deal more than they
depositors (as the savings bank had bargained for in suggesting
does), rather than paying them in so-called "equality." The compe¬
dividends to stockholders or re¬ tition they now receive is con¬
At this point I should like to
taining them for the benefit of fined, for most commercial banks,
stockholders, the commercial bank to a relatively small part of their advance another reason or two
would be able to reduce the tax business, their thrift deposit busi¬ why I would hope that my com¬
differential,
-i
ness.
One factor which gives the mercial bank friends would re¬
mutual savings bank an advantage consider the charges made by some
The ^ principal
reasons why
a
in the rate of interest that can be comercial banks that the mutuals
savings bank can pay a greater
rate of interest on deposits than a paid on deposits is the absence of enjoy advantageous tax treatment
commercial bank can pay are the having to pay dividends to stock¬ vis-a-vis commercial banks. The
think
I
is
between the respective
difference
banks for the methods
by the commercial
benefit of their stockholders which
there
that
fact
the
of
Branches
The
the
question of branches,
like
taxation, is en¬
fog of misrepre¬
sentation engendered by those who
question
shrouded
in
of
a
Number, 5952
Volume 191.
The Commercial
...
and Financial Chronicle
'yl
*
f
t-
ceek to serve;,
nthpr than the
^
a ; vested. Interest Ih lin!
public Interest; It obligations.
difficult for a- legislative
Jfndv to deal with a controversial
nSion of this sort on. its merits
Sihen it is subjected on every side
^ the pulling and hauling of
I!ifkh interests. Legislative bodies
ought not to try to deal with this
cort oi question except in a very
broad way.
It is essentially a
nnestion that has to be dealt with
very
supervisory
by
administratively
authorities are
in the best position to determine
whether the public interest and
Public necessity» »will* be -better
served by the grant or the denial
of a particular branch application
made by any type of financial in¬
stitution. Therefore, it would seem
to me that the only restrictions
that should be placed within any
state upon branches of any type
of banking institution,; including
savings
and
loan associations,
should be those promulgated by
the
appropriate
supervisory
authorities. These
authorities.
idea
S
^5? lnter?st
insurance
to
"'outautc
unbalance
and
ctuu
Federal
the
budget
"purchas-
so-called
increase
Its^oltevhnte rdt°eS-invest j,ng not belong to that school al""I do p°wer" by Panting money. I
policyholder to
Dermit
J
vn
of thought-that believes the way
to-meet a situation of this kind is
companies.
a
*
own- There is an important school
The variable annuity
being picked up by other
is
ii
■
x,
thp6 annual SUmS hG P?a£?s thouSh 1 firmly believe that no
^HPany "? a vaJlable society, free enterprise itr. any
or
annuity.
That
portion
of
his nthpr lHnri
with
ic
Hydra-Power
SeCUritieS Off'd
Race Relations
i
osen 10 f
.
fL
aou
v™
,,
lortent°to
relations
.
newsnaDers" Ind
newspapers and
the
read
Aetna Securities Corp. and assocjate
Z !nLiln
than
units' $600,000 of Hydra-Power
Corp., 6%% subordinated debena..a
Mm.
is
mm
:n.ith
nfnnr
fore to.us than the solution of our,
with
ssxlsz&ZZ
warrants
&ps&zsssszt r^»«„-3S?sre£ ac-rs/^iasfr
wi-ins'
ing to work.
foenrure
Units
While
+
mutual
a
bank
savings
could
not
provide annuities,
might well offer its depositors
economical opportunity
through the bank,
it
to invest,
substitute for jobs. The unemployed need real purchasing power
part of their
a
savings in a common stock mutual
—the kind made
fund
and
operated
by
the
bank, rA
it
provide
it
and
expertly. Any
could
mutual
r
fund operated by a savings bank
for
the
benefit
of
depositors
1
should
"
probably
ment
have
requiresomewhat after
patterned
of the goods
up
services, which
they themselves produce — not the bogus
and artificial purchasing power of
mutual could provide this service
reasonably .cheaply
tntJulinnnnlfsfInt^
^P
h'JfnS Iht
a
that of the Teachers Insurance and
before
JJ5T* ^hiph°SmifreHlmCl<lr^lfn!S
creeds
and
that
say
we
conduct
our
by.
Expressing physical distance in
within ,a given state
of locations of
restrictions
number
the
on
branches of
IV
I
'
-
It
rency.
plan in advance for
can
such
problems. Labor unions and
management can, at such times,
and
banks
savings
have
associations
•' been
lately
showing
close
in
order
to
of
pressures
those
who
:
would
*"1
A
T,i1—*
4U~
little
and
and
After all, the mutuals
us.
millions
serve
people
millions
upon
within
their
of
states
throughout the United States
they are serving them without
diverting to stockholders
sub¬
a
stantial part of the
earnings from
investment ./of • their "funds.
These millions of people : have a
vital interest in what,
happens to
the
The, representatives
jn our state Legislatures
Congress
and in
have
a
deep concern
about anything affecting the wel¬
fare of these millions
of. little
people. They look to us to keep
,
them informed about our business
and about the interest of our mil¬
lions of
depositors for whose sole
benefit
exist.
we
Therefore,
Point
to
in
know
well
our
a
repre¬
Congress. They want and need
information and. h,elp that we
give them about matters af¬
can
fecting
the
interest
People.
all
are
funds
.
with, the
of
mutual
years
since
War
II—particularly those
representing investment in
common
nsurance
on,
.
Mutual Fund
familiar
growth
during
the
World
many
:>■*/ .//;//-
v
Phenomenal
funds
so
.
Savings Bank
You
of
•
A
stocks.
and
of which
The
Teachers
,
Annuity
I
am
Associa-
proud to
be
s*.ee» ^as Pioneered among
JJPanies writing life insurance
annuities in developing the
■
unable
at
annuity idea. .The variannuity is, in general, somelike the mutual fund in that
A„?erm^s the investor (the.an*°
•
participate
more
rectly in the growth of the
nerican
mencan economy than would be
would^
.
case
case if the sums placed by
if the sums
with the
,
Se
company
.
were
by
law
to
Not
out' of; printing
struggle with communism
for
also be practicable for
Federal
Government
rcuci<n
uuvchuucih
(with
(whu
the
mc
some
and
—
participation by local state
municipal governments)
to
restrictions,
and
economic
ority in
ocnppiallv
these
in
especially
these
in
phy, because of the very nature of
business, is anti-inflationary,
We do not believe that the way to
our
such
e 50th
a
runn
interest of the
the
interest
the
in
gener-
that
believe
therefore
We
ally.
the public
of
or
saver
should
finance its financial requirements
out of taxation rather than
by
means of the printing press.
We
Government
Federal
our
believe that there is no more ex-
its
beyond
live
to
Federal Government
for our
cuse
than
means
city gov-
or
for private busifor our families to live
beyond their means. There may
be rare instances, as for example
in time of war, when it is; impos-
ernments,
nesses, or
Government' in
the
for
sible
a
y
nmcpnt
Iqu;
■
generally to help it plan and coin executing the plan. Our
society can, I am sure, do this,
gperate
totalitarianism
the
avoid
socialistic
state,
of
the
maintain the in-
tegrity of our money, and preserve
our essential liberties.
" There are some things, and they
the
Government* in
carrying
on
these activities should be covered
either
derived from
by revenues
The Governthen have to resort to
savings bankers believe that
ment
thp
may
those
ment
sence
process
printing
of
in order to out-bid the conin
the open market for
money
sumer
which the Governhas to have. But in the abthings
the
within its
it 'ought also in nor-
such
of
emergency,
an
Government should live
income
in
and
times to make some
mal
paying off the
T
of
rpalize
progress
public debt.
course,
enterprise
free
that,
economy
in
a
where
decision-making and planning are
individual and free, we may have
periods of
•i
■
^
money
printing press.
;
a.
rnu I
n.
restrictions by Congress on the in-
je^uxcuu >
y
&
Hawaii,
of
where
white
on
—
a
and with
mutual admiration and respect.
full
of
equality
The mutual savings bank recog.
.
receives
the
,
11
serves
SCIVCS
entitling
purchase
warrants
common
holders
the
to
stock at $7 per
to< and .including
Jan. 2,
share
1963; at $10
share through Jan.
a
2, 1965; at $12 per share through
Jan. 2, 1967, and at $15 a share
through May 15, 1970. The war-
rants will not be separately transferable
who
anyfborrower
be redeemable through the Sln^~
ing fund, starting March 1, 1962,
at redemption prices ranging from
103% to par, and at the option of
the company, beginning May
1,
1961,
at
prices
receding
from
106 y2% to par, plus accrued in•
iov,at,i
The
corporation, with its plant
in New Rochelle, N. Y.,
is engaged
in the manufacture of
primarily
pneumatic
hydraulic,
fuel
and
valves, brake controls, as well as
and other
control actuators
servo
related
products for aircraft (mil¬
and commercial) including
helicopters, and to a lesser extent
for guided missiles and rocket
engines. For the year 1959, the
company
had total income of
$1,881,863 and net income of $103,638, equal to 42 cents per common
share.
tion
of
»
,:
de
any
the
of
-
*'
of
...:n
company
$700,000
shares
of
debt
in
,
will consist
and 244,760
stock. ,"
common
Associates
on
or
The debentures will
may elect.
financing, outstanding capitaliza-
most
P°®'tor- lPk,ng emote/ment
1961,, or
the company
as
all
dll
mutual savings
N
prior to Jan. 21,
earlier date
such
Upon completion of the current
upon compieuon oi ine current
the
f^ discriminate
°fulrda^ fa/i/Zt /nv
0
have
debentures
it
monev
particularly
those
P ®
h
Tt
UepU&It.
and
,
,y p
,
Hennsit
Oil
people
,
the
in
rolnr
the
Gleich
D.
;
offering
Co.; Butcher &
rerd; Roman & Johnson.
are:
Sher'/
It
ereat Tav when
"Ronlr ISfpTvipn Will
andgour stateyassociations -DailK WOlHen Will
our
a
r\
remrri
,
1
YY
•
j_
-
P^e "^selves <COllVene 111 Oct.
crimfriation against
of
— LOS ANGELES, Calif.
emTenf
; grounds of
Challenge of
our
any
Sat
on
s
.
,
they
•©niiaiffv
r»f
*9.. __yf
race
A
th
Wrongly
fo
belteve
nnnnrtnnitv
for
—
"The
Changing World"
or
a
ann0Unce
everv
will
the
be
theme
of
the
38th
annual convention of
auuuai convenuun ox the iNauunai
uie National
thi»? rnnntrv irresoective
^
d
f
the
investment
of
those
and with respect to
he^
th
deposits
the hiring of
.
serve
the
those deposits.
UC1SU1U1CX
personnel / who
the
,£
v
who
own
,
our
no
.
fear for the future of
T,
,
,,
.
business> jt was born in this
years ago to promote
is -misguided and, al- savings among people of small
though probably unintentionally and modest means. The need to
gQ
alg() mischievous. It is wholly serve
those people is as great
'
.
^nl.^r
todaY as ^ ever waSi That need
inconsistent with the free enl^r- wm continue far on into the
prise open market system, which future, time without end. No
js supposed to be characteristic of device has as yet been devised by
democratic society, and, if these mar? *° serve that need as un"
*
selfishly as the mutual savings
restrictions * are imposed at the ban^ serves it. How can anyone
Federal level;- they may interfere be other than optimistic about
with
the Treasury's ability to our future?
may
pay
.
.
,
.
1
. .
flationary.
.
...
.•
become outright in-
^ ^
..
.
»An address by
Main
Cashier,
and
Bank
Trust
Co.,
Crew,
Western
Pasadena
Office, Pasadena.
All
NABW
members
Mr. Schwulst before
positions
hold
ex¬
in
3,500.
.
About
pected
to
500
delegates'are
attend the
•
ex¬
convention.
They will hear prominent speakers
fr0m education, government, law
and medical fields plus the banking profession. Outside of convention activities the bank women
win tour the Hollywood area,
visit Disneyland and see other
points of interest in this entertainment
- •
j
and
Now
tourist center.
Proprietor
ROME, Ga.—Oscar H. McWilliams
is nOW sole proprietor Of Williams
Convention of the National & McWilliams,
Association of Mutual Savings - Banks, Avenue.
A
Washington, D*'C., 'May 10, 1960.
the 40th
First
banks. The
group, organized in 1921 with 16
members, now lists more than
Conclusion
I have
Assistant
ecutive
:.//// vin
....
terest rate which the Government country 144
1 1 xt
employment. Thls^ iS( especiauy
employment. This & especiauy
to occur in
; likely tnoccur in a society as comin- plex and as industrialized as our
our
book
non-white majority
the
basis
"' a
maladjustment and un-. ;manage 0ur huge public debt, and
iicnpfiallv
»'o..ubv. ^—
o- x
»
.
^
to the
needs.
unhanDV
The
attached
Association of Bank Women, Oct.
10 to 13 at the Huntington-Sherav*
»
believe that ton
Hotel> Pasadena, announces
^"^vin^s bank should follow NABW President Helen L. Rhineing collectively—that is, through Z Jyr/*rimiLt«rv
oolicies
not hart, Vice-President, Brenton Cos.,
Government — rather than indi- non-discriminatory
policies not „ „ ,
only with respect tq tee receipt of
e n e r a 1
convention
yidually. But expenses incurred by
deposits, but also with respect to
Chairman is Mrs. Louise
wen and properly be growing
in number, which even in our free
society have to be done by us actmay
the activities or by taxes collected
fr0m the people.; These expenses
should not be covered by resorting
emergency
the
of
minority has
to live harmoniously with
learned
..
short time to appropriate
through taxation and through the
sale of bonds to savers the amount
of national' income to meet the
very
:
^
J
white.-This
'
provided under present law.
/There are no doubt other things
that can be done by a free society
to avoid or substantially mitigate
economic maladjustment and un-
purposes.
itary
ng the mon®y~
security is through employment. It must learn how to
of the value of pian and how to induce the labor
our money. We do not believe that
unions and management and proinflation creeping or otherwise, is ducers employers and employees
in
out
State,
our
a
destruction
the
leaf
and
progress
relationships with
our
J0/01
taxes to a much higher figure than
nntmfrv
...
.
.
colored fellow citizens. We should
awaiting
while
reasons
,
results after cutting costs to stinw
important to the welfare of
country,
the
a^.ord bigotry and false as-
to industries refraining for a time
from the discharge of workers for
and, through savings, capital formdiiun
is
uux
^
mation is our business. Nothing is
days of the cold war. Our philoso-
of
sumptions of innate white supen-
some
printing press,
Unemployment
insurance . reseivw
serves
might be built up out of
inignt
uc
uuiu
uui
our
hearts
and
A
safe-
appropriate
under
K*r
savings
of
encouragement
minds
the
uncommitted peoples of the world,
the great majority of whom are
non-white. In the light of this
awesome fact, we Americans can
might
;
The
lcai?f.in Partlcular are engaged in
a bitter
of
press
standing bank loan; and the bal¬
ance will be for general corporate
Artir
money,
Credit Problems
and
and out
savers,
ulate demand. Any funds required
VI
Budget
pa
vq
sold
guaranty should be
obtained from taxes or by borrow-
there is for our state or
should make it
we
sentatives in the Legislature and
the
issues
under
,
the mutuals.
into
enacted
be
purposes,
purchase
the
—1
iri
.
de- guaranty against excessive losses
New York Legislature.
the
more
destroy
bank
savings
hope
I
will
and
efforts better to
counteract "thev' propaganda,» and
to
-
taxes.
■
-
that committee
comes
up
with a practical and
satisfactory suggestion that can
some
public. We need to make
-
--
positors.
be kept fully
acquainted with our business and
contacts
a
is
is
^
sentatives ought to
these
that
know
to
Banks
Association
into
the possibility
facilities
tendency to disappear. Our repre¬
its needs and its
happy
am
-
legislative • a n d
Congressional
representatives, although this re¬
the
stock
common
of make,
'
affording mutual fund ihYestm'ellt, guards
our
rather reserved in contacting their
serve
*
i
It
Savings
looking
^
is
mi
committee of the New York State
Officials
serve
i
the
into
counts
Contact With Government
trade
l
corporate
of new
equipment, raw material, and to
finance work-in-process and finincluding
^aY when the Pilgrims sailed to
America, we find that this planet
^as shrunk in size from one with
a. diameter of 8,000 miles and a
circumference of 25,000 miles to
a
diameter of only 33
one with *
m nniv S3
"
fund.
organization.
Our
•
time, would prevent too heavy a
drain of funds out of deposit ac-
type of banking
any
•
various
for
society to meet its unemployment
problems than by debasing its cur-
.
-
the financ¬
from
terms of travel time and compar- ished products oi subsidiaries; re¬
*ng today with that not so distant duction of a portion of an out-
.
ii.
proceeds
the money printing press.
t
There are better ways for a free
the best position to Annuity Association, in that the
fix the standards and
to make portion of the depositor's* funds agree to reduce labor costs and miles and
a
circumference
of
invested in the mutual fund (pre- profits so that
prices can be rethem flexible in accordance with
about 100 miles. The people on
duced.
This would increase the
the changing needs of the com¬ sumably a common stock fund)
this
tiny sphere must learn to
would have to bear some rela- real
purchasing power of the pubmunities. They serve only the
public interest. Where there are tionship to the regular savings lie generally and would stimulate respect each other and must learn
t(? live together—notwithstanding
both Federal and state supervisory deposit balance he maintains with consumption and employment.nr/iorl
i/^nrvl
nvi/4
the
savings bank. The regular / The
governments
at
various differences in creed, ideoiogy, and
authorities involved, thev should
deposit balance would be an es- levels might hold in reserve for ra^?14 is ;important that the
agree upon common policy with
sential feature, it seems to me, of such times many needed public
man, and .especially/^he
respect to the particular state in¬
understand this
volved. Other than the restric¬ any such plan, because it would improvements. But these improve- white American
the; white peoples of
tions imposed by the supervisory, provide an emergency reserve for ments should be financed out of because
the
depositor and, at the same budget cuts elsewhere, out of bond ^stern Europe and we Amerauthorities,
I
would
have
no
They are in
de¬
and
warr
iou
ing will be used by the company
® llflJL V5
believe in
«
we
measure
Net
rpTfJi™!!
fbp
$1,000
of
150
•• ana
$500 debenture -and-75' warrants,
are priced at 100%, plus accrued
plui
interest from May 15, ix
m^k 1960.
-
wh
which they can produce their own
living. Printing press money is no
an
and
••
,
The unemployed need jobs from
warrants'
consisting
benture
.
.
.
0ffering todav CMav 19)
are
counh-v^mTthin
sr,,kKin;s. s<s:
ir—w
33
(2181)
'
102
West
Fifth
The Commercial and Financial Chronicle
34
_
awaiting processing by the
SEC, it is becoming
and
index
the
;(D.
expectations of the underwriter
but are not, in general, to be considered as firm
offering dates.
I
items reflect the
&
Victor
H.
by
stocknolders—underwritten
Co.
Riter
Co.)
Schroeder
Co.,
Inc.
Aero
Sachs
(Goldman,
Allen
Co.;
&
Hammill
Co.)
&
shares
331,740
Common
I
Lomasney & Co.) 5825,000
(Myron A.
will
by the holders thereof. Price
—
Arizona. Public Service Co
To be
i-"',
leasehold improvements. Office—1308 Prospect
Cleveland, Ohio. Underwriters—L. F. Rothschild & Co.,
Ohio.
which
be
210,880
offered
for
shares
the
account
the
holders
thereof
Federal
cago,
of
for
such
the
on
basis
of
share
one
for
each
Office—Floral
Park,
L.
I.,
N.
writers—Bear, Stearns & Co. and Allen
&
_$75 principal amount of debentures
and
30
—Rauscher, Pierce & Co., Inc.,
offering has been postponed.':
Dallas.
Note
—
&
$295,000
.
& Co.)
$600,000
150,000
Co.)
Co.)
&
150,000
Co.)
of
i
,
&
Co.)
,
C.
(B.
This
$292,500
—
Inc.
&
and
Richter
Co.,
&
and
Co.)
Co.)
$376,000
\
financing for the company's products by
pur¬
from the company's distributors
Office—1415 Waterloo
Road, Akron, Ohio.
Alterman
Foods, Inc.
(6/13-20)
230,000 shares of common stocks (par
$2.50), of which 168,310 are to be offered
by Bankers
Securities Corp. and 61,690 on behalf of
the
18
filed
company.
Price—To be supplied
by amendment. Proceeds—To re¬
pay indebtedness, for working
capital and other corpo¬
rate purposes
Offiee—933 Lee St., S.
W., Atlanta, Ga.
Underwriter—Kidder, Peabody & Co. Note—The name
has been changed from
Alterman-Big Apple, Inc.
Aluminum Specialty Co.
May 3 (letter
$1.20
of
notification) 15,750 shares
cumulative
Price—s^
iDer
of series
convertible
share.
Address—Manitowoc,
Wis.
American
C,
Underwriter—Emch
&
Co
™
proposes to offer these securities
U1llts consisting of two
one
ceeds
price
i
and
To
of
warrant.
cover
two
an
initial
additional
Co.)
$520,000...
&
for pub-
shares of stock (par
Price—$6.25
installment
per
on
unit
the
Pro¬
purchase
bowling centers; for furniture
Continued
on
Brown
&
(Merrill
Co.)
;•<
.
Sons)
.
Fenner
&
.
Inc.
Midwestern
(Stcne
Co.
and
Gas
page 36
Inc.)
&
Street
Webster
and
&
Co.)
Halsey,
Securities
Stuart
&
Co.,
Inc.)
&
Webster
Co.
and
Securities
Halsey,
Corp.;
Stuart
60,000
&
Weld
Monarch
Tile
National
Pierce
&
Co.,
Weld
Obear-Nester
OK Rubber
Glass
Pierce,
Sullivan
Smith,
(Offering
Reliance
Inc.)
i
&
Co.,
Co
50,000
—.Debentures
Manufacturing Co
(Glore,
Forgan
(White; Weld
&
Co.)
&
Co.)
'White,
Weld
&
Industries
H.
M
150,000
360,000
Co.)
(General
D,
&
Co.)
$300,000
4
"
Common
$100,000
Inc.)
Co.,
&
..Common
Co.)
87,809
shares
Warrants
—
Fuller
D.
Corp.
&
T
(S.
Debentures
—
Fuller &
D.
82,065
Co.)
$1,000,000
Co.)
Englehard Industries, Inc.——:
(Dillon,
Read
Co.,
&
and
Inc.
.Common
Lazard
,
(Myron
Ets-Hokin &
;
■
Lomasney & Co.)
Alstyne,
Noel
J.
Lawrence
&
Sons
.
.
Common
—
$750,000
Common
&
Co.)
$1,325,000
Farrington Manufacturing Co
(Cyrus
:
.
Galvan, Inc...
(Van
;
A,
Co.)
&
Freres
-
Esquire Radio & Electronics, Inc
Federated
Florida
and
..Debentures
Cathers
Brawley,
& Co.)
Electronics, Inc._L.i—-———--Common
B.
Coburn
(Jaffee
Debentures
$1,000,000
$300,000
&
80,000
Co.)
..Common
shares
'
-
Florida Power & Light Co.——————Common
(Bids
Capital
Inc.)
Associates,
Builders, Inc.—"——
§12,000,000
Inc.)
Common
1
&
Cohon
Fuller
(S.
shares
—Debentures
Co.,
•
134,739 shares
—j———
(J,
-.—Common
—
Blauner
'Y.'
200,000 shares
Inc.)
Co.,
Securities
D.
Corp.
shares
(J. A. Hogle & Co.) 230,000 shares
Telectro Industries Corp
$3,290,000
$6,000,000
^Common
Southwest Forest Industries, Inc
(Milton
"
Elco Corp.
shares
shares
to stockholders—underwritten by
Byllesby & Co., Inc.) $450,000
Southwest Forest Industries, Inc
Straza
210,045
——Common
Inc.)
Capital
Co.)
&
;
$300,000
400,000 shares
Common "
&
410,206 shares
—Common
Inc
$360,000
Co
Fenner
Welders, Inc
(Bosworth,
Ott Chemical
,
Elco
shares
Common
(First Securities Corp.)
.
Common
Films,
Inc.)
58,337
$2,010,000
..Common
(S.
Packaging Corp
Lynch,
&
$225,000
Inc.)
;
Common
——
(Morris
Manufacturing, Inc.—Common
(Rauscher,
'J
Inc.—
McDonald & Co.)
(No underwriting)
Elco
Co.)
"
Co.)
&
'
'?
shares
Corp.
Class A
&
•
Preferred
Dynatron Electronics Corp
warrants
Bruce
V.
:' r.
'
.
&
—Warrants
White,
Co.,
■
Mackay
and
Co.)
&
"
Corp.
Dynamic
:
Miller & Van Winkle Co
(Whitmore,
Dalto
'
Common
(McDonnell
;
Co.,
$60,000,000
Midwestern Gas Transmission Co
(Stone
&
Co.——Bonds
White,
'
Capital Corp.-
$299,950
Corp.;
Inc.
Pools, Inc
Crawford
Wickett
'r
(Mandell & Kahn, Inc.)
;
Mackay
and
Co./ Inc.)
&
v-V-V'.;-■■■.:(A. G. Becker &
Transmission
Inc.
Co.,
&
and
(Kuhn, Loeb & Co.
Continental
shares
Russell & Saxe; V. S.
^
-
,
Beryllium Co.
Cabana
Common
Broad Street Corp.;
'
—^r
O'Neill
(George,
.
Brush
,
shares
Metalcraft Inc.
(First
Murphy
(Pearson,
/
Smith,
Co.-,
&
Bruce National Enterprises,
..Common
317,500
■."
Common
.400,000
Common
28,250
shares
Big Laurel, Inc.——
u;
-
$750,000
Lynch,. Pierce,
...,
—Debentures
400,000 shares
.—Debentures
Brooks
Inc.)
,r:
f-;...,
,
Inc
Murphy
(Pearson,
Common
&
,
'
Bowla-Bowla Corp..
i5 nltd 100'02° shares of common stock and warrnvTi company Purchase of an additional 50,000 shares,
The
!!
cents)
W.
Common
1,000,000
.
.
Mays <J. W.), Inc
(Merrill
preferred stock (no par)
Proceeds—For working capital.
Milwaukee, Wis.
25
(P.
>
consumer paper
Underwriter—Reynolds & Co., Inc., New York. Offering
—Expected in early June.
•
v
.
Shell Homes,, Inc.—
—.Common
j?§p. H. Walker & Co. and Beil & Hough,.Inc.)
Big Laurel,
.Common
shares
90,000
Inc
Morgan
-
—
Ralph B. Leonard & Sons,
Co. and
«;
^.iiAJnits
Inc.)
Litecraft Industries, Ltd.
(Alex
(no par).
be
dealers.
March
(Peter
$1,600,000.
(G.:H. Walker & Co. and Beil & Hough, Inc.) $1,600,000
Common
...
'Maryland Credit'Finance Corp
stock
common
supplied by amendment. Proceeds—To¬
gether with an additional sum of
$6,000,000 to be bor¬
rowed for institutional
lenders, will be used to provide
chasing
>Lite-Vent Industries,
Co.)
Investment
.:
s
-
....
Witter
shares/
Co.__/.__Capital
Bevis Shell Homes, Inc
—
;
Securities
.
...—Common
$1,125,000
Scherck,
150,000- shares.'"'
«-.»
Morton
(Dean
$300,000
335,880
Co.)
&
Common
—
Inc.)
$5,000,000
„
consumer
Witter
(G. J. Mitchell Jr.
-..Common
Hawley Products Co.
v
|
shares
420,945
————
Common
.Hampshire gardens Associates
• Allstate Consolidated, Inc.
May 2 (letter of notification) 100,000 shares of common
stock (no par). Price
$3 per share. Proceeds
For
working capital. Office—1800 David Stott Bldg., Detroit
26, Mich. Underwriter—None.
Price—To
underwriting)
(Tuesday)
Aviation Employees Corp
shares
(Equitable Securities Corp.) 220,605 shares
■;
$60,955,160
......—..Commoii
American International Aluminum Corp._Common
(Hardy & Co. und Filor, Bullard & Smyth) 400,000 shares
\
Common
Co.,
--
,
.
——.Common
underwriting)
stockholders—no
American Frontier Life Insurance
Common
450,000
General Shale Products Corp
cor¬
..Common
Telephone Co...
to
Aid, Inc.
shares
Inc.
&r
\
;
shares
150,000
Corp.)
A. K. Electric Corp.
(Hilton Securities,
shares
150,000
underwriting)
Sullivan
v
(Friday)
May 31
'
Inc..
International,
(Bosworth,
Office—Arlington, Texas. Underwriter
Alside, Inc.
April 23 filed 300,000 shares of
Higginson
North Central Co
Bevis
Gem
«
shares
unit. Proceeds—For general
per
Co.)
Co.)
&
(Hecker
(No
Price—$108
&
Hentz
(Bache
Bowling Centers, Inc.
Dec. 29 filed $750,000 of sinking fund debentures and
300,000 shares of capital stock, to be offered in units of
$300,000
(Thursday)y■.
Illinois Bell
Realty & Construction Corp.—War.
Friendly Frost
Inc.)
Co.,
Electric^ Co.__
(Lee
$2,000,000
Co.)
Founders Mutual Depositor Corp....
Allied
porate purposes.
26
May
Superior
Forest City Enterprises, Inc.—
Y.
Under¬
Co., both of
&
& Construction Corp.___Pfd.
&
Hentz
(H.
New York City.
stock.
Rensis
de
(Union
First National
two
shares held of record May 12, with rights to expire on
May 31 at 3:30 p.m. EDT. Price—$4.25 per share.
Proceeds—To reduce current indebtedness and for future
operations.
(P.
f
First National Realty & Construction Corp.—Com.
subscription by holders of outstanding shares
stock
Towbin
Lomasney
Kentz
(H.
..
^
1
(Dean
Properties, Inc.
$567,000 -#■
...Common
First National Realty
March 17 filed 830,133 shares of capital stock, being of¬
fered
;
.Common
(H,
All-State
'
May 27
Figurette, Ltd.
York.
•
;
Debentures
Corp
(Myron A.
& -Co.)
Corp.—-Debentures
• *
.r
(Dillon, Read & Co., Inc.) $25,000,000
Vulcatron
Corp
1—
——Common
Common
(Westheimer
111. Underwriter—Dean Witter & Co., Chicago and
New
Steel
••
Common
Lomasney
A;
(No
and
$28,000,000" ;
underwriting)
/(No
(Offering
125,000 will be issued and sold by the company. Price—
To be supplied by amendment. Proceeds—For additional
working capital. Office—7045 North Western Ave., Chi¬
V-
;
"
shares
200,000
Co.)
Unterberg,
$3,975,000
1:00 p.m. EDT)
(Bids
Texas Eastern Transmission
*
$300,000
Inc.)
—
E.
~y
Listener Corp
Otarion
——Common
FXR, Inc.
(C.
Co.——-—Common
Capital
(D.
"
*
Chemicals, Inc
&
-
..
(City of)———————Debentures
; ;
;
V
300,000 shares
Inc.)
Securities,
(Allen
—^—*—Common
(Wednesday)
,
Jeffrey-Robert
Co., Inc
Dubois
Co.)
(William R. Staats & Co.) 3,000 shares
5
r
Common
Co.,
(Ross
stock (par $1),
outstanding
and will
&
$300,000
& Co. and J. C. Bradford
120,000 shares
V
Hammill
;
,
Inc.)
T.:;r
—
&
■'
Montreal
Common
and
French,
&
$287,500
Pharmacal
Doak
common
are
of
Co
(White, Weld
Proceeds—For
Aid, inc. (5/31-6/3)
April 28 filed 335,880 shares of
of
Finance
Dial
multiples of $100 each. Price—At
mining expenses. Address—
Juneau, Alaska.
Underwriter — Stauffer Investment
Service, 1206 N. W. 46th Street, Oklahoma City, Okla.
value.
Corp.
Corp.)
notes to be offered in
face
Securities
income
Common
Fricke
'
Common
$1,500,000
(Dempsey-Tegeler & Co.)
(Mainland
Mining Co.
(letter of notification) $300,000 of 6%
:■[
Chemical Packaging Co., Inc
Alaska Empire Gold
April 12
.V
shares
Common
shares
Missouri Pacific RR.——Equip. Trust Ctfs.
" "
.Common
Bowers Battery & Spark Plug Co.—.
New York, and Murch & Co., Inc., Cleveland,
/
•
(Oifering to stockholders—underwritten by The First
Boston Corp. and Blyth & Co., Inc.)
333,400
Ave.,
•
Street
Spring
Capital
Folger. Nolan, Fleming-W. B.
Johnston, Lemon & Co. and
Peabody & Co.) 100,000 shares
Inc.;
Co.,
Kidder,
supplied by amendment. Proceeds—Principally for vari¬
ous
<Si
.:
'Vv:./' May 25
...
Sons;
&
Brown
Hibbs
«
offered
be
(Alex
•
$10,000,000
Common
—
American Security Corp
Airport Parking Co. of America (6/13-17)
April 27 filed 42,574 shares of class A common stock (no
par), including 25,000 shares to be issued and sold by the
company and 17,574 shares which are outstanding and
:
v.;
Industries, Inc
*
V
'
.
Bonds
100,000
Corp.)
Boston
Moyer,
(Shearson,
(Monday)
May 23
Aero
"
Engineering
Spartans Industries, Inc
•
& Co., Inc. and Netherlands
Securities, Inc.) 5600,000
Winston
A.
(J.
shares of common stock (par 25
cents). Price — $3.30 per share. Proceeds — For new
equipment, expansion of the business, and general cor¬
porate purposes. Office—Pottstown, Pa.
Underwriter—
Myron A. Lomasney & Co. of New York City.
time)
Y.
N.
a.m.
First
(The
Schaevitz
(Woodcock,
filed 250,000
shares
75,000
Co.)
Corp
Piper Aircraft
Shearson,
and
11:00
(Bids
'
.Common
Co.
&
Keystone Electronics Co., Inc
(5/23-27)
Inc.
Industries,
Common
54,000 shares
A. Lomasney & Co.)
Holt, Rinehart & Winston, Inc
general corporate purposes.- Office—231 Front St.,
Brooklyn, N. Y. Underwriter—Hilton Securities, Inc.,
580 Fifth Ave., New York, N. Y.
For
Common
Towbin
Jersey Central Power & Light Co
—
(Myron
$1,650,000
Co. and C. E. Unterberg,
Shields <Sz
Higginson Corp.;
(Lee
and Bertner Bros.)
K. Electric Corp.
Dynex, Inc.
inc.)
Co.,
Ionics, Inc.
shares
100,000
(5/31)
May 4 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—
'
Common
&
—Class A
—
&
Kletz
G.
(Tuesday)
May 24
Pressprich
shares
Audion-Emenee Corp.
(Pistell,
System, Inc
Yale Express
(Michael
W.
R.
145,703
&
Class A
$800,000
Common
to
and
■
;
shares
'
$100,000
Corp
&
(Offering
;j
Common
250,000
——
Co.)
(Stan)ey Heller &
Common
Inc.)
Co.,
Curtis)
&
Viewlex, Inc.
$3,570,000
underwriting)
Corp
Chemical & Film
Anken
..Capital
Insurance Co
stockholders—no
to
Stereophonic
American
accompanying detailed
the
in
(Offering
Jackson
Webber,
Common
Co.) /S720.000
&
Co., Inc.—
Manufacturing
(Paine,
Penn Life
American
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
Florida, Inc
Morgan
(Peter
(Friday)
May 20
REVISED
ITEMS
•
Vector
large number of issues
the
of
-JBecause
NOTE-
March 11
Thursday, May 19, 1960
.
Thermal Industries of
CALENDAR
ISSUE
NEW
A.
.
* INDICATES ADDITIONS
SINCE PREVIOUS ISSUE
Registration
in
Now
Securities
in
.
(2182)
Futterman
3:45
p.m.
EDT)
400,000
shares
Class A
Corp.
(Reynolds & Co.)
660,000 shares
General Atronics Corp
(Harrison
'
Common
&
Co.)
$544,810
Number 5952
Volume 191
.
.
The Commercial and
Financial Chronicle
.
Henderson's Portion Pak,Inc.—___..Common
(Burnham &
Northwestern
200.000 shares
Co.)
Bell
(Bids
Petrochemicals,
Kenrich
Inc.—>
Philadelphia
(First
Common
Corp.)
Philadelphia Corp.)
(First
(Shearson,
Smithers
s.
Co.)
&
Mattel, Inc.
(Bache
78,000
Co.)
&
300,000
June
$300,000
Co.)
Stearns
(Bear,
&
217,278 shares
Co.)
s
;
:
2,682,801
Parks
&
Co.,
Martin
O'Neill
$300,000
June
A.
Murphy
(Pearson,
t
Inc.)
Co.,
Inc.)
F.
13
F.
Sierra
--
Electric Corp.—
&
&
Co.,
Sire Plan of Normandy
Plan
(Sire
Plan
(Sire
Portfolios,
Smilen Food Stores,
4,500
Co.)
Sloss
(Marron,
&
Co.,
Inc.)
Teleregister Corp.
&
Sutro
Corp.
Teleregister
(Ladenburg,
Co.,
Bros.)
Bear,
Stearns
Co.
&
Sutro
(W.
and
Co.,
Bros.)
Bear,
Stearns &
Co.
240,000 shares
C.
Brothers)
(Lehman
Brothers)
Reduction
(A.
C.
Allyn
Holman
200,000
—
Wallace Properties, Inc
A.
Warren
Dillon,
shares
;
,
&
Co.
&
a.
(Offering
to
Westmore,
Inc.
\
Whitmoyer
.
m.
EDT)
.Bonds
——
invited)
$25,000,000
(Tuesday)
July 6
-
-Common
Inc.—------$643,500
Co.)
(Wednesday)
Illinois Bell Telephone Co._
240,000 shares >
(11.00
EDT)
m.
a.
Sierra Pacific Power Co
;
be
to
July 7
.——.Bonds
$50,000,000
-——Bonds
——
invited)
$3,000,000
(Thursday)
Gulf Power Co.
V
Common
—Preferred
-———-
$5,000,000
(Bids to be invited)
Gulf Power Co.
-Bonds
(Bids
—Common
July 11
$5,000,000
invited)
be
to
(Monday)
Laclede Gas Co._
..——-Common
(Bids
$300,000
Co.)
Pearson
Common
Inc
Kirkland
Jenks,
&
-Bonds
—
11:00
m.
a.
$10,000,000
DST)
A. Holman
&
-Common
——
Co.,
50,000 shares
Inc.)
^
Rajac Self-Service, Inc.—,-—
—Debentures
Inc
Corp.__—
(R.
$510,000
Co.)
-Common
—
(Walter R. Blaha & Co., Inc.) $300,000
$500,000
(Tuesday)
(Bids
Bonds
$30,000,000
June
15
11
V
;'y
aA
Garrett
$40,000,000
be Invited)
-%
Sachs
.J
Investing
$150,000
Corp.)
Securities
June
Common
&
:
$262,750
Corp.)
Drug Associates, Inc.———
(Fidelity Securities
f
——Common
Investment Co.,
10,000
Inc.)
shares
(Fidelity Securities
Investment
Co.,
$100,000
Inc.)
Inc.)
Globus,
and
$700,000
Goelet Corp,——.—
Corp.
and
Globus,
Corp. A—
Lyon
&
70,000 shares
Inc.)
Inc.)
Globus,
and
35,000
Rogers Co. and Hilton Securities,
Inc.)
(No underwriting)
110,000 shares
Growth Capital, Inc
Co.
and
Common
Webber,
Paine,
Jackson
&
Harvey
(Bear, Stearns
Co.)
212,500
R.
(Amos
National Lawn
Treat
Co.,
Inc.)
$2,000,000
Service Corp.-—-.—
(Fund
Old
&
Planning
Inc.)
.Common
$300,000
Line Life Insurance Co—^Common
(Equitable Securities Com.)
123,329 shares
Day)
Cohon
&
Co.
Schrijver
—Bonds
$25,000,000
Indianapolis Power & Light Co
(11:00 a. m. N. Y. Time)
$500,000
& Co.)
October
Common
^Louisville
Common
—
$300,000
Bonds
$12,000,000
'
————Common
Associates)
United States Boat Corp.—
(Richard ,Bruce <Ss Co., Inc.)
18
November 3
$300,000
——-Common
$700,000
;
(Tuesday)
Gas & Electric Co.—
—^—-Bonds(Bids to be invited) $16,000,000
•
Movielab Film Laboratories, Inc.-*—
-Common
(Granbery, Marache & Co.) 100,000 shares
Inc.—
(Tuesday)
Common
Electronics, Inc.——
R.;Maher
-Debentures
September 27 (Tuesday)
.—Common
——
(Edward H. Stern & Co.)
(John
/
(Bids to be Invited >
(Offering to stockholders—underwritten-by Paine,
Webber, JAckson & Curtis) 100,000 shares
Sea-Highways,
(Tuesday)
September 13
750,000 shares
Martin-Parry Marine Corp.
$38,101,600
Virginia Electric & Power Co._
and Tucker, Anthony &
and
—.——^Debentures
invited)
90,000 shares
t—
Laboratory For
shares
Illinois Beef, L. & W. S., Inc.—Common
L.
Itemco, Inc
Curtis)
...-Common
Inc.)
be
(Bids to be invited) $100,000,000
.—Common
—
Co.,
to
$255,000
250,000 shares
Aluminum, Inc..
(Morris
August 9
.Common
Inc.)
$6,000,000
EDT)
Southwestern Bell Telephone Co
——Common
Fennekohl &
(Kuhn, Loeb & Co.
$10,000,000
Hudson Vitamin Products, Inc.—
Co.,
&
ra.
(Tuesday)
(Bids
—Common
—Bonds
& Light Co
a.
Consumers Power Co.—
Common
200,000 shares
General Sales Corp
$2,000,000
Great American Realty Corp.———Class A
Holman
A.
(Hayden, Stone & Co.)
Warrants
——
Inc.
Co.,
(11:00
July 26
Faultless Caster Corp.—
Great American
Realty Corp.—-—-Debentures
&
Bonds
$5,000,000
Custom Craft Marine Co., Inc.—
fB.
New Jersey Power
Norman & Co.,
Inc.; Cortland Investing
and V. S. Wickett & Co.. Inc.) $300,000
(R.
(Tuesday)
July 19
$3,000,000
Columbia Technical Corp.—-
—Common
Co., Inc.
invited)
be
Common
—.—
Merrill Lynch, Pierce, Fenner &
Reinholdt & Gardner)
and
Inc.;
$5,000,000
(Monday)
20
—Debentures
Inc.
to
(Hornblower & Weeks)
-Bonds
-
Goelet Corp.
(Ross, Lyon &
invited)
be
Co
Brothers:
Smith,
Debentures
American Rubber & Plastics Corp.-
(Diran,
Drug Associates, Inc.———
Lyon & Co.,
to
(Bids
—Common
„———
Gas
shares
150,000
Co.)
&
Savannah Electric & Power Co.„
$40,000,000
Inc.—
Chemtree Corp.
(Havener
Common
Savannah Electric & Power Co
Processes,
(General
Laclede
(Lehman
(Eids
Chemo-Vive
■
(Thursday),
Bonds
(Monday)
$25,000,000
EDT)
(Thursday)
July 14
shares
60,000
Corp.)
•
(Goldman,1
m.
a.
.Preferred
Boston
Interstate Finance Corp
r/,\
Southern Electric Generating Co.
(Bids to
(11:00
Debentures.
Register Co.——
—_—-Bonds
Northern Illinois Gas Co
100,000 shares
Inc.)
Harnischfeger Corp.—
June 16
(Wednesday)
July 13
—Common
(Merrill Lynch, Pierce, Fenner & Smith,
—Bonds-
$10,000,000
(Bids to be invited)
(Wednesday)
(Thursday)
Cash
Central Illinois Electric & Gas Co.—
$50,000,000
Corp
First
(Tuesday)
July 12
Bonds
of New York
EDT)
a.m.
,
underwriting)
(Dillon, Read & Co., Inc.)
National
—
;
$525,000
*
(McDonald
$650,000.
Debentures
Co.)
Inc.)
Securities
Consolidated Edison Co.
and
Co.
&
*
(Louis L.
...-Common
(Pleasant Securities
$51,000
:
Vickers,
Sulzberger,
shares
168,833
'238,590 shares.
;■
(Ross,
unknown
shares
175,000 shares
Co., Inc.)
to be
Electronics,
shares
Association
Laboratories,
(Hallowell,
-
(The
Goelet
of
(Tuesday)
July 5
Missile
Common
„————
(Jacey
Common
Securities
Co.)
stockholders—no
■
(Ross,
June 28
shares
$2,336,960
Corp.)
Whitmoyer Laboratories,
Southwest Indemnity & Life Insurance Co.—Com*
•
&
Tampa Electric Co.
Common
Industries, Inc.—
June 14
Union
Kidder
M.
(Bids 11
.
Common
number
Co.)
Systems, Inc
(Bids
Co
(Merritt,
Debentures
Michigan Wisconsin Pipe Line Co
June 6
&
$50,000,000
Corp
(Wednesday)
(Eastman
National
Brothers)
$12,000,000
Food Fair Stores, Inc.—
June 2
$501,000
Inc.)
Co.,
(Myron A. Lomasney & Co.)
...Common
(Hallowell, Sulzberger, Jenks, Kirkland & Co.)
•
&
.
(Offering to stockholders-—underwritten by Schweickart & Co.)
1
——Common.
Magnus
—Common
shares
68,000
&
.Common
$500,000
Inc
(Lee Higginson Corp.) 50,000 shares
,
Common
-
Michael
Trans Tech
Common
180,000
Inc.)
Courts
$1,500,000
Co.)
Wohlstetter)
&
Hamilton,
(Amos Treat
Common
h fLee Higginson Corp.) $500,000
.
Waltham Precision Instrument Co., Inc.--Common
June
Stelma,
Debentures
120,000
Curtis)
Co.,
Security Industrial Loan
-
——
700,000
and
(P.
(Frank Karasik & Co., Inc.) $450,000
\
shares
360,000 shares
(Harriman Ripley & Co., Inc.)
&
Sudler &
Products, Inc.—
$2,200,000
Inc.)
Seskis
(Lehman
Common
Co.,
Common
C.
Montgomery Ward Credit Corp.——-Debentures:
Security Industrial Loan Association—Debentures
120,000 shares
Wallace Properties, Inc.—
(Harriman Ripley & Co., Inc.)
&
Amos
Industries, Inc
$330,000
.
&
$1,500,000
Co.)
Reeves Broadcasting & Development Corp.—Com.
$6,000,000
Inc.)
Co.,
Inc.)
Co.)
and
(Bids
Co.--—l—uL—L——Common
&
shares
Debentures
United Financial Corp. of California-——Capital
Uranium
&
&
$350,000
Cdrp
(Laird
(Lehman
Co.
(Godfrey,
Common
Inc.)
Co.,
Jackson
Langley & Co.
Panel
■.
and
V
United Financial Corp. of California
&
Stearns
-
Saucon Development
Manufacturing Co., Inc
Pacific
Common
&
Co.,
Bear,
$300,000
Boats, Inc.————.
(R. A.
Oxford
7
—
Thalmann
42,574
Products, Inc.—
Holman
A.
-V.
■'
$6,000,000
and
(Finkle,
Magic Boats, Inc.—
(R.
'
"
&
Peabody
Webber,
Glass Magic
——Debentures
Thalmann
(Ladenburg,
Glass
$1,250,000
100,000 shares
Co.)
Corp.)
underwriting)
Drive-in
(Paine,
—Common
Witter &
(Dean
General
.Common
Telecomputing Corp.
v,
(Kidder,
shares
Swimming Pool Development Co., Inc
Inc.)
Edgerton, Germeshausen & Grier, Inc
shares
200,000
Co.,
Development Credit Corp. of Maryland
Common
&
&
Products, Inc
Holman
(No
Inc
Stonehill
(Federman,
Inc.)
Co.
Common
Accumulation
A.
$225,000
of Normandy Isle, Inc.-——Preferred
Sire Plan
Lamtex
Lee Motor
Murch
Holman
A.
(R.
—Debentures
Inc.)
and
Deluxe Aluminum
$900,000
Isle, Inc
Portfolios,
&
-
$500,000
Inc
Deluxe Aluminum
;v
Common
Inc.)
—Class E
Inc.)
Common
Co.
Foods,
(R.
—
Sloss
(Marron,
Kidder,
(Bache
.
-Debentures
$2,520,000
Compressed Concrete Construction Corp.--Common
Common
— _-
Hotel Corp. of America—
(Kidder, Peabody & Co.) 230,000 shares
$300,000
to stockholders—underwritten by
Peabody & Co.) 76,600 shares
(Offering
Co.,
.——--Common
(Myron A. Lomasney & Co.) $1,250,000
(Purvis &
&
—Bonds
-
$17,000,000
EDT)
noon
Gulf-Tex Development, Inc.—
shares
(Monday)
(Capital
Servonics, Inc.——
Corp.)
.Common
...
States Utilities Co
(12
————Common
Space
Bernheimer
Rothschild
Alterman
$825,000
—.Common
&
298,204
Airport Parking Co
I
;;
Lane,
Co.)
...
(Bache & Co.) 400,000 shares
Gulf
&
——Common
Electrada Corp
(Friday)
(D.
—_—..Common
Co.,
Corp
Instrument
Service
&
Funding Inc.-:---.--
.
$4,665,000
Securities
Common
100,000 shares
(Darius, Inc.) $150,000
—Bonds
Foto-Video Electronics Corp.—
-Common
$300,000
——-
(George,
C. F. C
$1,709,680
-
$12,000,000
Newspapers, Inc
June 10
$420,000
(L.
Safticraft Corp.
—Common
-
I C Inc.
-—Common
Inc.)
(Keller & Co.)
$2,550,000
EDT)
a.m.
Union
(Johnson,
Kirsch & Co. and Robert
Associates,
Dillon,
Savannah
Common
—
Co., Inc.; T. M.
(Arrin &
11:30
(Monday)
Atlas Bowling Centers, Inc
Coca-Cola Bottling Co. of New York, Inc.—Com.
Common
;
Corp.)
Republic Graphics Inc.-
invited)
(Bids to be invited)
(Eastman
—
Securities
(Hancock
June 27
;
(Wednesday)
.
shares
Inc.)
Metals, Inc.——
Pioneer
;v,..5
•
.
Patrick County Canning Co., Inc
Everett,
be
—Debentures
-
(Offering to stockholders—underwritten by The
First Boston Corp) $8,300,000
shares
Atlantic Coast Line RR.—Equip. Trust Ctfs.
.
——Common
&
8
———Debentures
Pacific Coast Properties, Inc.
(G.
(Bids
stockholders—Underwritten by Ladenburg,
Thalmann
-Common
112,500
Washington Gas Light Co——
-Common
Namm-Loeser's Inc.
to
to
""
(Friday)
Miles Laboratories, Inc.—
$300,000
i1'(Hancock Securities Corp.)
(Offering
Co.)
(Offering to stockholders—no underwriting)
shares
(Simmons, Rubin & Co., Inc.)
Medallion Pictures Corp
&
(A. G.) Spalding & Bros. Inc.—
Fibers Corp.—
McGowen Glass
(Eids
shares
————-—.-Common
—-—■
Hammill
June 24
35
$45,000,000
Equip. Trust Ctfs.
-——Common
& Co.)
EDT)
June 7
(Tuesday)
Chicago, Burlington & Quincy RR.
$1,250,000
Magnin (Joseph) Co., Inc
(F. S. Smithers
a.m.
Debentures
$175,000
Magnin (Joseph) Co., Inc.—-.-Debentures
(F.
-^.Debentures
Telephone Co.
11:30
Simmonds Precision
Products, Inc.
$192,500
Kenrich Petrochemicals, Inc.—
(2183)
(Thursday)
Georgia Power Co
(Bids
December 6
to
——
be'nvited;
——Bond*
$12,000,000
(Tuesday)
Northern States Power Co. (Minn.)—
(Bids; to be invited) $35,000,000
—Bonds*
The Commercial
the
added, to
and the balance to be
fixtures thereon;
available for general corporate
purposes. Office—400 38th St., Uniorr City, N.J. 1Underwriter—Hill, Thompson & Co., Inc., New York. Offering
-working capital and be
—Expected in early June.
Co.
April 15 filed 96,450 shares of class "A' common capital
stock. Price—$5.80 per share Proceeds—For general cor¬
porate purposes. Office—917 15th St., N. W., Washington,
American Capital Life Insurance
C. Underwriter—None.
D.
amount. The company proposes to offer
preferred shares and common shares initially
through subscription warrants. The holders of outstand¬
ing preferred stock will be entitled to purchase the new
preferred at the rate of one new share for each ten
their principal
Continued from page 34
and
American Convalescent
v
.
,
Foundation, Inc.
March 31 (letter of notification) 60,000 shares of com¬
mon stock.
Price—At par ($5 per Share). Proceeds—To
Life
Frontier
American
•
International
standing
Inc., both of New
fray all or a portion of the cost of the company's antici¬
pated 1960 program of property additions and improve¬
ments.
Office — 28 East Center St., Fayetteville, Ark.
1
Underwriters—Snow, Sweeney & Co. Incorporated, New
Life
Penn
American
(5/20-27)
Co.
share held.
one
& Co., Boston,
company's
Agent's
Stock
Option
Plan.
•
:
,
Price—$28
Office
La Porte, Ind. Underwriter
Weeks, New York City.
&
American & St.
—
share. Proceeds—To pay off
properties,
prove
Office—60 E.
American
Security Corp.
March 28 filed
The
company
jTrust Co. by
holders
owns
real
(5/23-27)
is
affiliate
an
of
American
estate.
fund
mon
(par $2).
Security
&
capital stock of the Trust Company in units
one new
•
each six shares held. Price—To be
supplied by amendment. Proceeds—$1,950,000 will be
applied toward the
purchase of certain properties and assets of the Sperry
Hand Corp.; $140,000 will be used to
retire short-term
bank loans; and the balance for general
corporate pur-
i
-
poses. OH!ee.-l
—R.
W
Hicks Ave., Newton, N.
& Co. and Riter
j. Underwriters
Pressprich
Co.,
New York.
Arco
19
'
1
both
of
Electronics, Inc.
filed
140,000 shares of class
t0ri™nT*To be sumPPlied by
$350,000 for
A
common
amendment
stock.
Proceeds
—
general corporate purposes and the balance
Office—New York City. Under¬
writer—Michael G. Kletz Si Co.r
Inc., New York City.
^ Arden Farms Co.
for
working capital.
May 13 filed $4,000,000 of 6% subordinate
debentures,
series
due'July-1, 1990 (convertible), 44,278 shares
Preferred stock, and 149.511 shares of
debentures
are. to
common
stock.Hie
be. offered for public sale at
100%
of
of
Big Laurel, Inc.
Office—Tampa,
purposes.
Byer-Rolnick Hat Corp.
May 9 filed 100,000 outstanding shares of common stock.
Price — To be supplied by amendment. Proceeds — To
selling stockholders. Office—601 Marion Drive, Garland,
Underwriters — Dallas Rupe & Son, Inc., Dallas,
Tex. and Straus, Blosser & McDowell, Chicago, 111.
.Tex.
(6/27)
(letter of notification) 75,000 shares of . common
stock (par 10 cents), Price—$2 per share. Proceeds—For
general corporate -purposes. Office—90 Broad St., New
York 4, N. Y. Underwriter—Darius Inc., New York, N. Y.
C.
F. C. Funding Inc.
May 6
•-Cabana-Pools, Inc. (5/31-6/3)
f
(letter of notification) 150,000 shares of com¬
stock (par 10 cents). Price—$2 per share. Proceeds
For general corporate purposes.
Office — 640 Fifth
Avenue, New York, N. Y.
Underwriter — Mandell &
Kahn, Inc., Time-Life Building, Rockefeller Center,
New York, N. Y.
1
March 31
mon
—
Capital Shares Inc., San Francisco, Calif.
May 3 filed 1,100,000 shares of common stock.
Price—
^ Central Charge Service Inc.
May 2 (letter of notification) 4,000 shares of common
stock (no par). Price—$12.50 per share. Proceeds—To
go to a selling stockholder. Office—620 11th St., N. W.,
Washington 1, D. C. Underwriter—Auchincloss, Parker &
Redpath, Washington, D. C.
Certified Credit & Thrift Corp.
filed 250,000
Jan.
26
and
250,000
shares of class A stock
shares of
1
one
share of
one
share of pre¬
Price—$3 per unit. Pro¬
ceeds—To develop a resort community and for
working
capital. Office—Bryson City, N. C. Underwriters—Pearson, Murphy & Co., Inc., New York City, and Mackay &
Co., Reading Ps
common.
Birtcher
Corp.
$500,000 of 6% convertible subordinated
debentures/due April 30, 1975. Price—At par. Proceeds
March 29 filed
—To
•
bank loanS incurred' to augment working
Office — Los Angeles, Calif. Underwriter —
pay
capital.
Quincy Ca?s Associates, Los Angeles, Calif.1
Bowers
Battery & Spark Plug Co.
(5/23-31)
March 29 filed 280,000 shares of common stock
(no par),
of which 250,000 shares will be offered for
public sale
at
$6
per
share
and
30,000
shares
will be
selected employees at $5.40 per share.
tween $200,000 and $300,000 is
offered
to
Proceeds -i Be¬
expected to be expended
before
1961 for starting up
unit.
per
rities Corp.,
class
B
stock
($10 par)
(20c par), to be
Proceeds—To pay mortgages. Office
Underwriters-Commonwealth Secu¬
Columbus. Offering—Imminent.
,
Chemical
Packaging Co., Inc. (5/23-27)
March 16 (letter of notification). 115,000 shares of com-mon stock
(par 10 cents). Price—$2.50 per share. Pro¬
ceeds— For general corporate purposes.
Office—755
Utica Avenue, Brooklyn, N. Y. Underwriters—Mainland
Securities Corp., 156 N. Franklin Street, Hempstead, N.
Y. and Jeffrey-Robert Corp., 382 S. Oyster Bay Road,
Hicksville, L. I., N. Y.
;;V
Chemo-Vive
Processes, Inc. (6/6-10)
;
April 22 (letter of notification) 75,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—To purchase machinery and equipment and the
balance for working capital.
Office —609-11 Fourth
Avenue, Juniata, Altoona, Pa.
Underwriter — General
Investing Corp., New York, N. Y. .
..V
;
Chemtree Corp. (6/6-10)
::
April 19 (letter of notification) 262,750 shares of com¬
mon stock (par 10 cents). Price—$1 per share.
Proceeds
—For
general corporate purposes. OffiOe—100 W, 10th
Street, Wilmington 99, Del.. Underwriter-^Havener Se¬
curities Corp., New York, N. Y. ;.-v
^
,
Circle-The-Sights, Inc.- ; o■
March 30 filed 165,000 shares of common stock and $330,009 of debentures (10-year 8% redeemable); Price—For
per share; debentures in units^ of $1,000 at their
principal amount. Proeeeds^-For initiating sight-seeing
stock, $1
service.
(5/31-6/3)
(par 10 cents), to be offered in units of
ferred and
•
Anken Chemical & Film Corp. (5/20)
April 7 filed 145,703 shares of common stock (par 20
cents), to be offered for subscription by holders of out¬
standing common stock at the rate of one new share for
corporate
March 22 filed 400,000 shares of 7% cumulative preferred
stock (par $2.80) and 400,000 shares of common stock
current indebtedness incurred incident to the purchase1
of the non-banking assets of The. City Bank of Wash¬
New York, N. Y. Underwriter—D. H. Victor &
Co., Inc.,
New York, N. Y.
general
Underwriters—G. H. Walker Si Co., New York City
and Beil & Hough, Inc. of St.
Petersburg, Fla., as comanagers.
\
share for each five shares
• American
Stereophonic Corp. (5/20-27) "
April 11 (letter of notification) 50,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—
For general corporate purposes. Office—17 W. 60th
St.,
for
Fla.
Price—To be supplied by amendment. ProceedsAmerican Security will use its proceeds in part to repay
ington, with the balance added to working capital for
general corporate purposes.
Office—734 15th Street,
"'N. W., Washington, D. C. Underwriters—Alex Brown &
Sons, Baltimore, Md.; Folger, Nolan, FlemingrW. B.
Hibbs & Co., Inc. and Johnston Lemon & Co.,
Washing¬
ton, D. C.; and Kidder, Peabody & Co., New York.
Homes, Inc. (5/31-6/3)
$1,600,000 of 9% subordinated sinking
due 1985 and 1,000,000 shares of com¬
stock, to be offered for public sale in units (200,filed
30
debentures
ance
held.
'
to further sup¬
000), at $15.50 per unit, each unit to consist of five com¬
mon shares, one $8 par debenture, and warrants for the
purchase of two additional units of one common share
and one $8 debenture at $9.50 per unit. Proceeds--$2,000,000 will be used to increase the company's holdings
of mortgages placed on the shell homes it sells; and $1,600,000 to be used to increase its holding of mortgages
will be placed in escrow for that purpose; and the bal¬
be offered
issuer at the rate of
or
Shell
Be vis
March
share of stock of each issuer; and the units are
for subscription by stockholders of each
one
to
re¬
Co., Washington, D. C.; and Ralph B. Leonard
Sons, Inc., of New York City.
&
reason of the fact that each of their stock¬
the same number of outstanding shares of
of
sub¬
chell Jr.
each entity. It is proposed to offer the
100,000 shares of
American Security stock and a like number of shares of
the $10 par
three
company's
insurance or finance
the business of
-
100,000 shares of capital stock
the
plement the funds of the three subsidiaries. Office—930
Tower Bldg., Washington, D. C. Underwriters—G. J. Mit¬
Price—$3 per
additional
of
—
mortgages, develop and im¬
acquire
shares
the
to time for
purchase of all or a substantial interest in or .the
formation of one or more other companies engaged in
42nd St., New York City. Underwriter—
Co., Inc., New York City.
A. J. Gabriel
•
and
in
the
Lawrence Seaway Land Co.
to be publicly offered.
are
Office—Cleve¬
Underwriters—Kuhn, Loeb & Co., New York
City, and McDonald & Co., Cleveland.
<
/
yi
land, Ohio.
—Columbus, Ohio.
invested
Jan. 27 filed 538,000 shares of common stock, of which
350,000 shares
To be supplied by
—
For expansion.
—$20.20
Employees Corp.
Aviation
sidiaries; for general corporate purposes;
maining balance will be used from time
(6/20-24)
May 11 filed 200,000 shares of common stock. Price —
To be supplied by amendment.
Proceeds—To selling
Hornblower
—
(5/31-6/3)
Feb. 8 filed 2,500,000 shares of common stock. Price—$2
per share. Proceeds—Together with other funds, will be
American Rubber & Plastics Corp.
stockholders.
Price
present holders thereof.
amendment. Proceeds
offered in units of one share of each class of stock. Price
•
v
■■
Brush
of New York City.
"per share. Proceeds — To increase capital and surplus.
Office—203 S. 15th St., Philadelphia, Pa. Underwriter—
None.
:,
Office—New York City. Underwriters
—Pistell, Schroeder & Co., Inc., and Bertner Bros., both
nine shares for each
held, and all unsold shares of this block will
offered under warrants granted in accordance with
the
Audion-Emenee Corp.
working capital.
Of the remaining 22,500 shares
shares
be
Underwriter—Keller
Mass.
(5/20)
shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — For
•
George O'Neill & Co.; > Inc., New
April 11
March 29 filed 100,000
the offering will be on the basis of
14
(6/27)
Inc.
Huntington Avenue, Boston, Mass.
registration of 127,500 shares of capital
stock (par $10) to be offered for subscription by stock¬
holders of record on April 28, 1960 with rights to ex¬
pire 30 days from offering date. Subscription rate on
105,000 shares of the stock will be three additional shares
March 30 filed
for each
Bowling Centers,
Atlas
—
-\
$1 per share. Proceeds—To increase capital and surplus
and for working capital.
Underwriter—None.
May 2 filed 100,000 shares of class A common stock (par
10 cents). Price—To be supplied by amendment.
Pro¬
ceeds — For additional working capital. Office — 255
^
Insurance
Chicago, 111.
York, and A. C. Allyn & Co., Inc.,
general corporate purposes and working capital. Office
—4851 N. W. 36th Ave., Miami, Fla. UnderwritersHardy & Co. and Filor, Bullard & Smyth, both of New
•
York.
gether with $1,500,000 to be received from a contem¬
plated private placement of debentures, will be used
to retire some $1,000,000 of term bank notes and to de¬
—
V
share
held of record May 24, 1960 with
• Arkansas Western Gas Co.
(6/6-10)
May 13 filed 50,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—To¬
April 13 filed 400,000 shares of common stock (par 25c).
Price
To be supplied by amendment. Proceeds — For
York.
$5),
out¬
rights
to expire on June 14 at 3:30 p.m. (EDST). Price—To be
supplied by amendment. Proceeds — For construction
purposes and payment of loans incurred for such pur¬
poses. Office — 501 South 3rd Avenue, Phoenix, Ariz.
Underwriters—The First Boston Corp. and Blyth & Co.,
AEuminum Corp.
£
stock at the rate of one new
common
for each 10 shares
;
(5/31-6/3)
(5/23)
Public Service Co.
Arizona
Underwriter
Fla.
York.
standing stock, are to be offered for the account of-the
record date
April 22 filed 333,400 shares of common stock (par
to be offered to holders of the company's currently
selling commission of $1.20 per share.
a
American
•
Thursday, May-19, 1960
the rate of
is to be the effective date of the registration statements.
Office—1900 West Slauson Ave., Los Angeles, Calif.
Co.
Insurance
(5/31-6/3) *
V;
30 filed 200,000 shares of capital stock.
will receive
•
..
Beryllium Co. (5/3l-6/3)y
: '
filed 410,206 shares of fcommom stock, of Which
260,900 shares are to be offered for the account of the
issuing company and 150,206 shares, representing out¬
purchase the additional common shares at
one new share for each ten shares held.
The
^
Price—$8
per share. Proceeds — To increase capital and surplus.
Office—1455 Union Ave., Memphis, Tenn. UnderwriterUnion Securities Investment Co., also of Memphis, which
Nov.
.
will be entitled to
Common stockholders
held.
shares
bay the balance on new land, retirement of short-term
bank loans, payment for additional equipment and fur¬
nishings and for working capital. Office—3267 South¬
east Hawthorne Boulevard, Portland, Ore. Underwriter
—Jerry A. Barfoot, Portland, Ore.
■
Chronicle
and Financial
(2184)
36
Office—Washington; D, C.
Underwriterr-None.
6 Coca-Cbfa
Bottling Co. of New York (6/8)
April 13 filed 298,204 outstanding shares of >its common
stock. Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriter—-Eastman Dil¬
lon, Union Securities & Co., New York. Listing—The
company intends to apply for NYSE listing.4
Cold
„
Lake Pipe Line Co.,
Ltd.
\
'
;
200,000 shares of common stock. Price—At
the market, at time of offering. Proceeds—For general
corporate purposes. Office—1410 Stanley St., Montreal,
Canada. Underwriter—Michael Fieldman, New York.
•
Feb.
•
5 filed
Colorado Caterers,
Inc.
April 8 (letter of notification) 150,000 shares of common
stock (no par). Price — $2 per share. Proceeds — For
working capital. Office-r7626 Old Georgetown Road,
Bethesda, Md. Underwriter—E. A. Burka, Inc., Wash¬
ington, D. C. Note — The SEC has announced May 9
that an anti-fraud proceeding has been filed against
Mr. Burka and his firm. The company is in the process
of
selecting
a
Columbia
costs, including initial rents
new
underwriter.
Technical
Corp.
(6/20-24)
of the new plant in the southeastern
portion of the
United States which it hopes to obtain and
open before
the end of the year; an additional
May 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office — 61-02 31st Ave.,
to
Woodside, L. I., N. Y. Underwriters—Diran, Norman &
Co., Inc., V: S. Wickett & Co., Inc., and Cortlandt In¬
vesting Corp., New York, N. Y.
be
$250,000 is expected
or through its
expended either by the company
subsidiaries for the improvement of certain of its
manu¬
facturing facilities, such as additional mechanization and
material control
handling and for experimental work in
connection with
beryllium; and the balance of the pro¬
ceeds will be added to the
company's general funds.. Of-
fiee-~Readtng, Pa.
Underwriter
Co., St. Louis and New York.
Bruce National
—
Dempsey-Tegeler &
of
Price—$6
Enterprises*. Inc.
per
(5/31-6/3)-
common stock (par 10
share.- Proceeds—For reduction
outstanding indebtedness; to
of* issue.
Priee^—At par.
Proceeds-^-For renovation and
a building.
Office—5001 Columbia View Dr.,
Vancouver, Wash.- Underwriter—E. I. Hagen & Co., Inc.,
Portland, Ore.
,
,
repair, of
April 29 filed 335,000; shares of
cents).
A-Columbia View Manor Corp.
May 2 (letter of notification) '600 first mortgage bonds
(par $500) with 7% interest, due-five years from: date
pay
off' mortgages
on
certain property; for
working capital and other corpo¬
rate purposes.1 Office—1118
N. E. 3rd Avenue,
Miami,
Commerce pit Refining Corp.
'
Dec 16,195T filed $25,000,000 of/first mortgage bonds dua
Sept. 1,1968*.$20,000,000 of subordinated debentures.' due
>
Oct. 1, 1968 and 3,000,000 shares of common stock
to be
Volume 191
Number 5952 ...The Commercial
and
offered in units as follows: $1,000 of bonds and 48 shares
stock and $1U0 of debentures and nine shares of stock.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
<
Dalto
March
Offering-j-Indefinite.
Compressed Concrete Construction Corp.
(letter of notification) 100,000 shares of common
10 cents). Price—$3 per share. Proceeds—For
general corporate purposes. Office — 313 W. Jericho
Turnpike, Huntington, L. L, N. Y. Uhderwriter—Cap¬
May 9
stock (par
tional working capital.
writer—None.
Dart
ital Accumulation Corp., Franklin National Bank Bldg.,
Roosevelt Field, Garden City, N. Y.
Connecticut & Chesapeake, Inc.
w
•
'
•
&
San
Francisco, Calif.
Co., Inc., New York.
Underwriter — McDon¬
stock (par $1).
Proceeds—To
loans, for expansion and devel¬
opment of new products, and for working capital. Office
—715 Hamilton
St., Geneva, 111. Underwriter—Old Col¬
ony Investment Co., Stoneham, Mass. Note—Statement
effective May 5. Name has been changed to Cetron Elec¬
tric Corp.
•
/
Cosmopolitan Insurance Co.
March 30 (letter of
notification) 58,000
stock {Par
$1). Price — $5 per share.
Mass.
Office—634 Broadway, Cincinnati, O.
Corp. (5/31-6/3)
April 22 filed $1,000,000 of 6% convertible subordinated
debentures due May 15, 1975, 82,065 common stock
pur¬
chase warrants, and 87,809 shares of common stock re¬
100%
Durox of
tion of short-term bank loans
Dec. 31,
($5,921,872 outstanding at
1959, including $5,199,800 of bank loans made
directly to an unconsolidated subsidiary). It is con¬
templated that the additional funds will be used to ac¬
quire land for
development or resale to dealers, con¬
struction loans to builder-dealers, expansion of the com¬
pany's market area, and the possible manufacture and
erection, in cooperation with builders, of "shell" house
packages for completion by the home owner on a "do-ityourself" basis. Office—7111 Florida Boulevard, Baton
Rouge, La. Underwriter—A. G. Becker & Co., Inc., of
Chicago
•
and New York.
Custom Craft Marine Co., Inc. (6/20-27) ^
(letter of notification) 85,000 shares of com¬
(par 25 cents). Price—$3 per share. Proceeds
March 28
mon stock
~-For general
corporate purposes.
Office—1700 Niagara
"
Minnesota, Inc.
,
,
•
principal
amount
plus accrued
"
Dworman
'
filed
Jan
15
$10
per
J. Rice &
Co., Min-
Corp.
.*
•••••,
300,000 shares of common stock. Price—
,
derwriter—Charles Plohn & Co., New York City.
—This offering has
been postponed.
Note
^
.
stock (par $1).
Proceeds—Ap¬
proximately $200,000 of the proceeds from the sale of the
stock will be used for the purchase and installation of
machinery and equipment in a new plant which the com¬
pany is presently negotiating to lease; $400,000 will be
used for the acquisition of tools, dies, jigs and fixtures;
$100,000 for leasehold improvements; and the balance for
working capital. Office—2546 Tenth St., Berkeley, Calif.
Underwriter — William R. Staats & Co., Los Angeles,
California.
Offering—Expected in early June.
Price—
Electrosolids
Corp.
^
(letter, of notification) 100,000 shares of com¬
mon stock
(no par). Price—$3 per share. Proceeds—To
repay borrowings, expand the company's facilities and
for working capital.
Office—13745 Saticoy Street, Van
Nuys, Calif. Underwriter—Morgan & Co., Los Angeles,
Calif...
/
•
,
...
April 25
T
•
Englehard Industries, Inc. (5/31-6/3)
Mar. 30 filed 400,000 shares common stock (par $1). Price
—To
be
supplied
by amendment. Proceeds—$2,000,000
outstanding amount of term notes, and the
reduce outstanding short-term indebtedness
and increase working capital.
Office—Newark, N. J.
Underwriters
Dillon, Read & Co. Inc., and Lazard
to
Dymo Industries, Inc.
April 11 filed 150,000 shares of capital
Price—To be supplied by amendment.
warrants.
29 "filed
.
poses.
Proceeds—For general corporate pur¬
Office—400 Park Avenue, New York City. Un¬
share.
the
Corp. (6/27-7/1)
>>.''•*,<*■■■>* v.r • ■ v400,000 shares of common stock.
Price—Tq. be supplied by amendment. Proceeds—For
acquisitions, debt reduction, and other corporate pur¬
poses. Office—9744 Wilshire Blvd., Beverly Hills, Calif.
Underwriter—Bache & Co., New York.
"...
;
interest. Price—To be
Bldg., St. Paul, Minn. Underwriters—Irving
Co., Inc., St. Paul, Minn, and M. H. Bishop &
neapolis, Minn. Offering—Imminent.
;
of
Electrada
March
'
supplied by amendment. Proceeds—For additional plant
and equipment and to provide working capital to com¬
mence and maintain production.
Office — 414 Pioneer
exercise
of
principal amount plus accrued .interest from
May 15, 1960. Proceeds—For retirement of the company's
indebtedness to The First Pennsylvania
Banking & Trust.
Co., and for the purchase of machinery and equipment,
Location—"M" Street below Erie Avenue,
Philadelphia,
Pa.
Underwriter—S. D. Fuller & Co., New York.
April 11 filed $650,000 of 7% first mortgage bonds and
120,000 shares of common stock (par $1). The offering
will be made in units of one bond ($100 principal amount)
and 20 shares of common stock or one unit of 50 bonds at
writer—Allen & Co., New York.
against the
served
Under¬
outstanding debt, including payment of mortgages,
taxes, notes, and miscellaneous accounts payable; for
and construction of .new fa¬
cilities. ,Office
1737 H., Street, N. W., : Washington,
D. C.
Underwriter—A. J. Gabriel Co., Inc., New York.
Crawford Corp. (5/31-6/3)
March 28 filed
200,000 shares of common stock (par $1),
of which
100,000 shares are to be offered for public sale
for account of
issuing company and the balance, being
outstanding stock, by the present holders thereof. Price
~--To be
supplied by amendment. Proceeds—To be initi¬
ally added to working capital and used for general cor¬
porate
purposes, including but not limited to the reduc¬
Engineering Corp.
ceeds—For
Chemicals,/Inc. (5/23-27)
shares of common stock (par $1)
681,000.
•
160 Brookline Ave., Boston,
EHco
Country CEub Corp. of America
•
/
April 29 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—For repayment
—
—
aries,
publicly offered and 125,000 shares issuable under
Restricted Stock Option Incentive Plan for
key employees. Price—To be supplied by amendment.
Proceeds—To reduce a bank loan in the amount of $2,-
general corporate
purposes
Office
purposes.
issuing company and 15,000 shares, representing out¬
standing stock/ are to be offered for the account of the
present holders thereof.
Price—$3.50 per share. Pro¬
to be
of
100,-
April 8 filed 85,000 shares of common stock of which
70,000 shares are to be offered for the account of the
the company's
f
Troy, New York.
Co., Inc., New York.
Underwriter—Kidder, Peabody & Co., New York.
Edwards
'
March 30 filed 200,000
-
&
general corporate purposes including sal¬
sales promotion, moving expenses, and research
$1,000 debenture and 100 shares of common stock.
and development work.: Office—715 Camp
Street, New
Price—$1,100 per unit: Proceeds—For general corporate
,; Orleans, La. Underwriter—Sandkuhl & Company, Inc.,,
purposes. Office—1238 Corlies Ave., Neptune, N. J. UnNew York City and Newark, N. J.
•
'■ >i
--i
derwriter—Fidelity Securities & Investment Co., Inc.,
Dubois
shares of capital
Proceeds — For
general corporate
purposes.
Office—4620 N. Sheridan
Road, Chicago, 111. Underwriter—Link, Gorman, Peck
& Co.,
Chicago, 111.
; T
./.•;
Building,
Boland
000 shares are to be offered by the company. Price—To
be supplied by amendment. Proceeds—For
general cor¬
porate
Asbury Park, N. J.
.
.
I
one
/
Troy
R.
offered for public sale by the holders thereof and
•
Drug Associates, Inc. (6/6-10) ,
May 6 (letter of notification) 100 units of $100,000 of 7%
sinking fund debenture bonds and 10,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of
Feb. 11 filed 260,000 shares of common
Price—To be supplied by amendment.
retire
outstanding bank
cents, and for a
Office—Hotel
Edgerton, Germeshausen & Grler, Inc.
;
f
(6/13-20)
/;
\
May 5 filed 120,000 shares of common stock (par $1) of
which 20,000 shares are now
outstanding and are to be
,
Continental Electric Co.
on
(letter of notification) 77,000 shares of common
(par $1). Price—$2.50 per share. Proceeds—To
repay notes payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—109 M Street, Anniston, Ala. Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.
.
(letter of notification) 100,000 shares of com¬
(par 10 cents). Price—$3 per share. Proceeds
—For general corporate purposes. Office—99 Park Ave¬
nue, New York, N. Y. Underwriter—Ross Securities, Inc.,
99 Wall Street, New York 5, N. Y.
: v!
policies
stock
stock
mon
insurance
?u the amount of $25
insurance for the purchase price of
public relations and publicity pro¬
East Alabama Express, Inc.
April 28
debenture in the amount of $150,000 held by the Small
Business Administration.
Office — 120
Montgomery
breakdown
April 1
.
business concerns, and to the extent necessary may use a
portion thereof to retire its outstanding subordinated
automobile
Underwriter—John
working capital. Office—919 18th Street, N. W., Wash¬
ington, D. C. Underwriter—Ball, Pablo & Co., Washing¬
ton, D. C.
%}.
' - .
»#•>>.
-I'"
• Doak Pharmacal Co. Inc.
(5/23-27)
:
Capital Corp/ (5/31-6/3)
April 19 filed 235,000 shares of capital stock (par $10).
Price—$14 per share. Proceeds—For investment in small
Underwriter—Myron A. Lomasney
Note—This statement has been withdrawn.
St., Des Moines, Iowa, Underwriter—White,
Co.; Inc., New York.
:
'
Investment Co.
and to expand
Office—123 Eileen
concerns,
business.
P.
gram.
be
Diversified'Realty
Continental
Street,
25
(5/23-27)
April 26 filed 250,000 shares of common stock. Price—
$5 per share (par 50 cents). Proceeds — For additional
—
H.
of such breakdown
—207 Ninth
Weld &
being
Matronics,
thruways, parkways and highways
will»beuiBed initially to reduce short term debt. Office
outstanding
E.
distribute
supplied by amendment. Pro¬
ceeds—To be added to the company's general funds and
$3.25
per share, and 850,000 shares will be publicly offered.
Price—$3.50 per share.
Proceeds—To general funds.
Office
Norfolk, Va. Underwriter — Willis, Kenny &
nell
.
public sale by the holders thereof, and
remaining 150,000 will be offered for the company's
Price—To
are
Corp. :
Aug. 31 filed 160,000 shares of capital stock (par 10c),
of which 100,000 shares are to be
publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
offered for
the
basis >;at
Ayres, Inc., Richmond, Va.
•
(no par),
including 150,000 shares which are outstanding and will
account.
the
Way, Syosset, N. Y.
& Co., New York.
March 25 filed 300,000 shares of common stock
of common stock, of which
350,000 shares will be reserved for stock options, 15Q.QQ0
of
■"
writer—None. '
be
for other
the scope of the company's
Development Credit Corp. of Maryland (6/13-17)
2,000,000 shares of common stock. Price
—$1.10 per share. Proceeds — For general corporate
purposes. Office—22 Light St., Baltimore, Md. Under¬
March 29 filed 1,350,000 shares
holders
duction of contracts
•
Little Rock, Ark.
creditor of Optics
tising incident to new products, to purchase additional
equipment and inventory for the manufacture, and pro¬
70,-
March 29 filed
Finance Co.
a
warrants
cerns, to finance the starting of inventories and adver¬
(6/13-17)
of principal
Dial
5,000
Price—To be supplied by amendment. Proceeds—
To finance the activities of the two newly-acquired con¬
Underwriter— R. A. Holman & Co., Inc.
•
stock and
Inc.
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.
Life Insurance Co.
to
Products, Inc.
common
Corp. ♦ The
issued to stockholders and certain creditors of
amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the common
stock, to
the present holders
thereof; from the rest of the offer¬
opments; the balance of the; proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
"first-come-first-served"
the holders of the
Manufacturing
■
debentures,
100%
acquired for sub-division and shopping center devel¬
a
Deluxe Aluminum
Oct. 15 filed $330,000 of convertible
debentures, and
000 shares of common stock. Price—For the
an
issued in escrow for the account of, and may be resold
by, the holders of capital stock and certain creditors of
Matronics, Inc., after July 22, 1960 at the then prevail¬
ing market price; and 4,000 shares for the account of
June.
Electronics, Inc.
(letter of notification) 200,000 shares of com¬
(par one cent). Price—$1.50 per share., Pro¬
ceeds—For machinery and electronic test
equipment,
working capital and a reserve fund.
Address—Rock-'
ville, Md. Underwriter—Balogh & Co., Inc., Washing¬
ton, D. C.
-
common shares (25 cents par) and
additional 5,000 shares of this stock. The
54,000
company proposes to make a public offering of 30,000
'shares. Of the additional 24,000 shares, 20,000 are being
stock
mon
Consolidated Realty Investment Corp.
be .offered
in
(5/20)
Inc.
warrants for
Defense
April 27 filed 2,000,000 shares of common stock. Price—
$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or pre-fabricated type residential or
commercial buildings and facilities upon properties to
on
on
April 12
The First Boston Corp. (jointly); Morgan
in room 1628, 4 Irving Place, New York City, up to 11
Stanley & Co. Rids—Expected to be received on June 14,
a.m. EDT.
Information Meeting — By appointment on
June 7 between 9:00 a.m. and 12 noon.
will
Dynex,
March 15 filed
behalf of the present holders
Price—$5 per share. Proceeds—For repayment
of corporate indebtedness and for
working capital. Office
sometime
Inc. and
common
stock,
St., N. E., Washington, D. C. Underwriter—
Hodgdon & Co., Washington, D. C. Offering—Expected
filed $50,000,000 of first and refunding mortgage
R, due June 1, 1990. Proceeds—To become
part of the treasury funds of the company and will be
applied toward retirement of some $55,000,000 of shortterm bank loans. Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
shares
common
—5458 Third
(6/14)
Underwriter—The Huntley Corp.,
200,000 shares of class A
thereof.
May 6
Constellation
;•
.
Drug Corp.
•dng outstanding stock,
bonds, series
Ark.
(5/31-6/3)
100,000 shares of com¬
mon stock (par. 10 cents).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—178 Herricks
Road, Mineola, N. Y. Underwriter—General Securities
Co., Inc., New York, N. Y.
170,000 shares are to be offered for public sale
behalf of the issuing company and
30,000 shares, be-
on
purchase shall be 10 units for a minimum
consideration of $3,600 ($2,600 of notes and 10 shares of
stock). Price—$360 per unit. Proceeds—For repayment
of certain advances made to the company. Office—72414th Street, N. W., Washington, D. C. UnderwriterShannon & Luchs Securities Corp.
be
•
Dynatron Electronics Corp.
April 29 (letter of notification)
Under¬
of which
r
the minimum
Co.
Office—Norwood, N. J.
"
March 30 filed
April 29 filed $585,000 of 4y2% promissory notes and
2 250 shares of coqimon stock.
It is proposed to offer
these securities for public sale in units, each consisting
of $260 of notes and one share of stock, provided that
Consolidated Edison Co.
(5/31-6/3)
134,739 shares of common stock, to be
subscription by holders of such stock of
filed
for
record May 2 at the rate of one new share
for each
two shares then held. Price—To be
supplied by amend¬
ment. Proceeds—For the retirement of
notes and addi¬
(6/13-2C)
•
Dynamic Films, Inc. (5/31-6/3) '-'
(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
—For
general corporate purposes.
Office— 405 Park
Avenue, New York, N. Y.- Underwriter—Morris Cohon
& Co., New York, N. Y.
•
s
; '
•
"'
March 29
:
Corp.
29
offered
37
•
& Co.,
,
Jrice—To be supplied by amendment.
:
(2185)
Street, Buffalo, N. Y. Underwriter—R. A. Holman
Inc., New York„N.*Y.
> - v
►
of
York.
Financial Chronicle
reduce
balance
to
—
Freres
&
Co., both of New York City.
4 Equitable Leasing Corp.
May 9 (letter of notification)
50,000 shares- of
common
stock (no par). Price—$2 per share. Proceeds—For work¬
ing capital. Office—246
Charlotte St., Asheville, N.
Underwriter—Courts & Co.,
Atlanta, Ga.
Continued
C.
<
on page
38
.
The Commercial
38
Espey Mfg.
& Electronics Corp.
of common stock (par $i;.
amendment. Proceeds—For
general corporate purposes. Office—Saratoga Springs,
Y.
Underwriter — Sutro Bros. & Co., New York.
Offering—Expected in mid-June.
N.
Esquire Radio &
Electronics, Inc.
(5/31-6/3)
10c).
Proceeds—$73,000 will be used to
replace funds used by company for payment of subordi¬
nated notes; $50,000 to repay short-term bank obliga¬
tions; and the balance of approximately $477,000 will be
added to working capital and used for general corporate
purposes, including financing of finished and raw mate¬
rial inventory. Office—39 Broadway, New York. Under¬
shares of common stock (par
Price—$5 per share.
writer—Myron A. Lomasney &
Inc.
250,000 shares of common
Price—$5.30 per share. Proceeds—To be
March 28 filed
•
filed $2,000,000 of convertible subordinated
debentures, due 1970. Price—To be supplied by amend¬
ment. Proceeds—$950,000 will be used to repay shortterm notes and up to $375,000 is to be invested in Micromega Corp.; the balance of the proceeds will be used
to acquire new facilities, to maintain necessary inven¬
tory to meet current and anticipated sales requirements,
to supplement working capital and for other general
corporate purposes. Office—26-12 Borough Place, Woodside, N. Y. Underw riter—C. E. Unterberg, Towbin Co.
30
subordinated de¬
bentures, 6%, due February, 1972, and 69,180 shares of
common
stock.
The company proposes to offer these
securities
units, each consisting of a $100 debenture
Price—$115 per unit. Proceeds
accounts payable and corporate in¬
in
and 10 common shares.
reduction of
—For
•
Office—Bensenville, 111. Underwriter—None.
Mar. 30 filed
—To
be
(5/31-6/3)
80,000 shares common stock (par $1). Price
Builders, Inc.
Florida
Proceeds—Between
by amendment.
supplied
$200,000 and $250,000 will be used to establish or acquire
a
Federal Housing Administration approved mortgage
financing and service company;
$200,000 will be used to
off bank loans; and the balance for working capital.
Office—700 43rd St. South, St. Petersburg, Fla. Under¬
pay
Insurance Co.
Home
17,500 shares of common stock to be of¬
fered to holders of the company's 85,995 outstanding
common shares
at the rate of one share for each five
shares held. Unsubscribed shares will be offered to em¬
March 30 filed
share; unsubscribed shares at $10.25 per share. Proceeds
—To increase capital and surplus and expand the busi¬
Office—1515
Spring St., N. W., Atlanta, Ga. Un¬
Atlanta, Ga.
derwriter—J. H. Hilsman & Co., Inc.,
Farmers' Educational & Cooperative
registered debentures, series
D, maturing from 1969 to 1980. Price—To be offered
in units of $100. Proceeds—To pay notes maturing be¬
fore Dec. 31, 1963, with $1,107,000 to be contributed to
surplus or loaned to subsidiaries. Office—Denver, Colo.
Underwriter—None..
y"-/'
:
25
debentures
ment
Proceeds—$2,000,000 to be applied to the pay¬
loans; $2,800,000 to the scanner program
of bank
for expenditures by
newly-formed
date
processing subsidiary, for inventory, 250,000 to pur¬
chase and test equipment for producting scanners and
$250,000 as working capital; and (b) $1,300,000 for re¬
search and development. Office—77 A St., Needham,
Mass. Underwriters—Cyrus J. Lawrence & Sons, New
in
including (a) $1,000,000
Farrington
Electronics,
Inc.,
a
1960,
York
City; and Brawley, Cathers & Co.. Toronto, On¬
tario, Canada.
ir Faultless Caster Corp.
(6/20-24)
—To be
—
Florida
supplied by amendment. Proceeds—$300,000 will
to purchase new presses and other production
equipment and the remainder will be used as working
capital/Office—1421 North Garvin St., Evansville, Ind.
Underwriter
Hayden, Stone & Co., New York City
(managing).
—
Federal
Steel
Corp. (5/23-27)
(letter of notification) 59,000 shares of com¬
mon stock (no par).
Price—$5 per share. Proceeds—For
an expansion program. Office—3327 Elkton Ave., Dayton
3, Ohio. Underwriter—Westheimer & Co., Cincinnati,
March 30
Ohio.
Federated
Electronics, Inc. (5/31-6/3)
(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For general corporate purposes.
Office—139-14 Ja¬
maica Avenue, Jamaica, N. Y. Underwriter—J. B. Coburn Associates, Inc., New York, N. Y.
April 25
Fidelity Acceptance Corp.
March 24 (letter of notification) 12,000 shares of class H
6%
cumulative preferred stock. Price—At par (25) per
share). Proceeds—For working capital. Office—820 Plym¬
outh
Bldg., Minneapolis, Minn. Underwriter—Ray
Kersten, 3332 E. Orange Dr., Phoenix, Ariz.
F.
Figurette, Ltd.
(5/23-27)
100,000 shares of class A common stock,
(par 50 cents) Price—$6 per share. Proceeds—For gen¬
March 3 filed
eral
corporate purposes. Office—514 N. E. 79th Street,
Miami, Fla. Underwriter—Myron A. Lomasney & Co..
'
New York.
•
National
first
series, $8
par,
redeemable by
CanHPSn°nn shares of May 15> 1963 at $10
S* afteI
and 150,000
common
acn
stock
Per
the
share>
(par 10 cents).
It
that these securities will be offered in
units,
unit consisting of one share
of preferred and one
Lynch, Pierce, Fenner & Smith Inc., New York.
(5/23-6/3)
Inc.
Gem International,
Mar. 29 filed 150,000 shares common stock (par $1). Price
—To be supplied by amendment. Proceeds—$125,0001 to
furnish and
open,
for the
built
equip the new Wichita store being
by others;
company
$75,000 to open, fur¬
equip the second store in St. Louis, similarly
being built by qthers; $128,600 to purchase the assets of
Embee, Inc., and Garrol, Inc., who now hold the basic
lease on the premises used by the Kansas City operating
nish
and
and who sublease the premises to that company:
company
$208,000 for advance to the Honolulu subsidiary to en¬
able it to purchase the assets of Honden, Ltd.j Honla
Ltd., and Dacat, Ltd., which now hold the basic leases
on
the store building;
$105,000 for advance to Gem
Stores, Inc., and Gem of St. Louis, Inc., to enable those
corporations to repay loans; and the balance for general
corporate purposes and as needed to expand existing '
establish new locations.
Office—418
Denver, Colo. - Underwriters — Bosworth, Sullivan & Co., Inc., Denver, Colo.; and Scherck,
Richter Co., St. Louis, Mo.
and
facilities
to
Building,
Empire
,
•
(5/31-6/3)
filed 155,660 shares of common stock. Price
General Atronics Corp.
18
March
developmental engineering and sales promotion of ma¬
handling equipment, $80,000 for investment in
Atronic Learnings Systems, Inc., $93,000 for repayment
terials
loans, and $157,859 for working capital. Office
of bank
Bala-Cynwyd, Pa. Underwriter
(5/31)
Office—Ingraham Building, Miami,
To be determined by competitive
bidding. Probable bidders: Merrill Lynch, Pierce, Fenner & Smith Inc." and Kidder, Peabody & Co.
(jointly);
Eastman Dillon, Union Securities & Co.; Blyth & Co.,
Inc.
Bids
Expected to be received up to 3:45 p.m.
(EDT) on May 31.
Underwriter
—
•
Food Fair
(6/1)
Stores, Inc.
April 14 filed 168,833 shares of common stock. Price—
To be supplied by amendment. Proceeds — To selling
stockholders. Office—2223 Allegheny Ave., Philadelphia,
Underwriters—Eastman
Co.
and
A.
Forest
M. Kidder &
Dillon, Union Securities &
Co., both of New York.
(5/23-27)
stock (par $1). Price
—To be supplied by amendment. Proceeds—For repay¬
City Enterprises, Inc.
Mar. 29 filed 450,000 shares Common
ment
of
bank
loans
and
for
&
Ave., Cleveland, O.
Co., New York.
Foto-Video
capital.
working
17903 St. Clair
Office—
Underwriter—Bache
Electronics
Corp. (6/10)
April 26 filed 125,000 shares of class B stock. Price—
$4 per share. Proceeds—$100,000 for research and de¬
velopment, $200,000 for working capital, and the balance
for
sales
promotion
expenses.
Office
Cedar
—
Grove,
N. J.
Underwriter—D. F. Bernheimer & Co., Inc., New
York
City.
Founders Mutual Depositor Corp.
(5/23)
—
Harrison & Co.,
(letter of notification) 60,000 shares of com¬
stock, class A (no par). Price—$4.87% per share.
Proceeds—To go to selling stockholders.
First National Bank Bldg.,
Denver, Colo.
—Hecker & Co., Philadelphia, Pa.
Office—2401
Underwriter
Franklin Corp.
April
26
filed
1,000,000 shares of common stock (par
Price—$10 per share. Proceeds—For invest¬
value $1).
ment.
Office
■—
9 2 5
Hempstead
Turnpike,
Franklin
Square, New York. Underwriter—Blair & Co. Incorpo¬
rated, New York. Offering—Expected in early June.
+ Franklin Discount Co.
May 2 (letter of notification) $50,000 of 8% subordinated
debentures due July 1, 1965. Price—At par. Proceeds—
To be placed in the general fund for the
purpose of pur¬
chasing conditional sales contracts and making loans.
Office—105 N. Sage St.,
•
Friendly Frost, Inc.
Toccoa, Ga. Underwriter—None.
(5/23-27)
April 5 filed 150,000 shares common stock (par 10c). An
additional 96,500 shares included in the
registration state¬
ment
are^ reserved for the company's Employees' Stock
Option Plan.
Price—$7.50
per share.
Proceeds—For
re¬
payment
grarn,
Frost
of bank loans, for company's expansion
proand the balance for working capital. Office—123
Street, Westbury, L. I., N. Y. Underwriter—None.
Futterman Corp.
(5/31-6/3)
April 1 filed 660,000 shares of class A stock. Price
To
be supplied by amendment.
Proceeds—For acquisition
of properties. Office—580 Fifth
Avenue, New York Un¬
derwriter—Reynolds & Co., New York.
•
by amendment.
Proceeds—For expansion. Office—480
Boylston St., Boston, Mass. Uriderwriter—Paine, Web¬
ber, Jackson & Curtis, Boston and New York.
notification) 12,500 shares of com¬
(par $5) of which 11,246 shares are to be of-
of record as of
£,n the basis of one new share for each share
S^ nprSt0?h0ldpS' $13'50 Per
rnoiram$ OfLS!Lfinfr?ii Pro*eed*-F<>r
Avenue,
public
Underwriter
—
Stem Bros. &
(6/20-24)
General Sales Corp.
April 28 filed 90,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount Center; $75,000
same purposes in the Salem Center; and $50,000
provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬
ance of the proceeds will be used to open two new stores
in Oregon and Idaho. Office — 1105 N. E. Broadway,
Portland, Ore. Underwriter — Fennekohl & Co., Inc.,
for the
to
New York.
•
'•//•'
'
General Shale Products Corp.
(5/23-27)
March 29 filed 220,605 shares of outstanding common
stock (no par). + Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—Johnson City,
Tenn. Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn.
•
Glass
Dec. 30
Magic Boats, Inc. (6/13-17)
(letter of notification) $51,000 of six-year 6Vz%
debentures to be offered/in denominations
convertible
of
Debentures are convertible into common
$1.50 per share. Also, 68,000 shares of common
(par 10 cents) to be offered in units of one $51
debenture and 68 shares of common stock.
Price—Of
$51
each.
stock at
stock
debentures, at par; of stock, $102 per unit. Proceeds—
pay off current accounts payable; purchase of raw
materials
and
for
expansion.
Office — 2730 Ludelle
Street, Fort Worth, Texas. Underwriter—R. A. Holman
Co., Inc., New York, N. Y. Note—The name has been
changed from Glass Magic, Inc.
&
Glass
Marine Industries, Inc.
April 25 filed 200,000 shares of class A stock and 100,000
shares of common stock. The class A stock is to be of¬
fered at $2.25 per share and the common at 75 cents per
share; and the class A and common shares are to be
consisting of two class A and one com¬
Price—$5.25 per unit. Proceeds—To develop the
offered in units
mon.
necessary production facilities to
share; to the
an expansion
Louisville, Ky.
Boyce, Baltimore, Md
Garrett Corp (6/15)
May 5 filed 100,000 shares of common
stock (par $2).
Price
To be supplied
by amendment. Proceeds—To re¬
produce the company's
boats.
Office—Humboldt, Iowa. Underwriters—Leason
Co., Inc., Chicago, 111.; William B. Robinson & Co.,
Corsicana, Texas; and Bala William & Co., Wichita
&
Falls, Texas.
•
Goelet
March
1
*
Corp.
filed
«■.
~
:
,
,•
..
(6/6-10)
$700,000 of 8% subordinated Installment
debentures,, due in March, 1970, 70,000 shares of com¬
mon stock (10 cents
par) and 35,000 common stock pur¬
chase warrants (exercisable at $4.30 per share until May
15, 1965), to be offered in units consisting of $100 of
debentures, 10 common shares, and five warrants. Price
—$143 per unit. Proceeds—To be applied toward the
company's general business activities. Office—292 Madi¬
son
Avenue, New York. Underwriters—Ross, Lyon &
Co., Inc. and Globus, Inc., both of New York.
•
Gorton's of Gloucester, Inc.
(letter of notification) 10,402
March 22
at
(letter of
mon.stock
\'t. V
by the company and 130,000 are outstanding and will be
offered by the holders thereof.
Price—To be supplied
mon
Gamble Brothers
April 14
(6/13-17)
Corp.
To
March 25
mon
Drive-ln
General
corporate purposes.
Fla.
J't
April 25 filed 150,000 shares of cumulative convertible
stock
Light Co.
?nrn 9fir,oScUr, Cr:Etlun to stockholders
Realty & Construction Corp.
(5/23-27)
preferred
Power &
May 3 filed 400,000 shares of common stock. Proceeds
—To provide additional electric facilities and for other
used
be
Office—9851
April 29 filed 180,000 shares of common stock (no par)
of which 50,000 shares will be offered for public sale
•
May 13 filed 250,000 shares of common stock (par $1),
of which 200,000 shares are to be offered for the account
of the present holders thereof and 50,000 shares are to
be offered for the account of the issuing company. Price
indebtedness.
outstanding
presently
duce
plied by amendment. Proceeds—To be added to the com¬
pany's general funds to be held in cash or invested in
securities. Office
1335 Biscayne Blvd., Miami, Fla.
Pa.
•
Manufacturing Co. (5/31-6/3)
filed $6,000,000 of subordinated convertible
due 1970. Price—To be supplied by amend¬
Farrington
ment.
Thursday, May 19, 1960
Philadelphia, Pa.
—
Union of America
March 29 filed $2,500,000 of
March
.
Sepulveda Blvd., Los Angeles, Calif. Underwriter—Mer¬
rill
—
Underwriter—None.
Family Fund Life Insurance Co.
March 30 filed 116,800 shares of common stock, to be
offered for subscription by stockholders at the rate of
one
new
share for each 5 shares held.
Price—$9 per
•
.
ployees and officers of the company who are stockhold¬
ers without further offering of such unsubscribed shares
to other stockholders of the company. Price—To be sup¬
■
ness.
.
—$3.50 per share. Proceeds—$60,000 for additional lab¬
oratory and production equipment, $80,000 for additional
writer—Jaffee & Co., New York.
Florida
(5/23-27)
FXR, Inc.
M^rch
Flick-Reedy Corp.
14 filed $691,800 of registered
March
debtedness.
Co.
(5/31-6/3)
stock (par $1).
added to com¬
pany's working capital and will be used principally to
reduce some $1,000,000 of its accounts payable. The bal¬
ance will be used to reduce notes payable to the Bank
of America National Trust & Savings Association. Office
—551 Mission St., San Francisco, Calif. Underwriter
—Van Alstyne, Noel & Co., New York.
Galvan,
&
Ets-Hokin
amendment.
loans made by
an officer and director of the company and a corpora¬
tion controlled by him to provide funds for apartment
house construction; about $500,000 will be used for the
repayment of a portion of bank notes; and the balance
will be added to working capital for use in the acquisi¬
tion of new properties and for the company's construc¬
tion program. Office — 630 Third Avenue, New York.
Underwriter—H. Hentz & Co., New York.
Proceeds—$257,000 will be used to repay
April 29 filed 80,000 shares
Price—To be supplied by
March 30 filed 150,000
Price—To be supplied by
share of common.
Continued from page 37
•
and Financial Chronicle
(2186)
shares of com¬
(no par). Price—At-the-market, estimated
per share. Proceeds—To go to selling stock¬
stock
$24J/2
holders. Office—327 Main St., Gloucester, Mass.
Under¬
writer—Kidder, Peabody & Co., Inc., Boston, Mass.
•
Great American Realty Corp. (6/6-10)
April 8 filed $2,000,000 of 7% convertible debentures
due July 1, 1975, together with
110,000 shares of out¬
standing class A stock. Price—For debentures, at 100%
of principal amount.
Proceeds—For additional working
capital. Office—15 William St., New York. Underwriter
—For
debentures, Louis L. Rogers Co., 15 William St.,
Securities, Inc., 580 5th Ave.,
New York City and Hilton
New York City.
Number 5952
Volume 191
.
.
.
The Commercial
and Financial Chronicle
(2187)
Furnace Manufacturing Co., Inc.
(letter of notification) 120,000 shares of
cross
30
flforfh
ion
704 Equitable
Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler
& Co., both of Denver.
Colo.
corn-
(par 10 cents). Price — $2.50 per share.
Creeds — For advertising, equipment and working
onital
Office—c/o Joseph J. Gross, 2411 Sunnybrook
SSd Richmond, Va. Underwriter—Maryland Securities
stock
Co!
Illinois Beef, L. & W.
S., Inc.
April 29 filed 200,000 shares of
Baltimore, Md.
Inc.,
per
Pa.
Capital, Inc. (6/6-10)
500,000 shares of common stock (par $1).
price—$20 per share. Proceeds—To provide investment
-onital and management services. Office—Bulkley Bldg.,
ripveland, Ohio. Underwriters—McDonald & Co., Cleve¬
land, Ohio and Paine, Webber, Jackson & Curtis, N. Y.
i
Growth
Inril
and
14 Bled
each
Gulf-Tex
•
Price
—
sured
property
additions
and
of advances to American
mortgage loans, and for other corporate
Office—575 Colman Bldg.,
Seattle, Wash.
•
.
International
purposes.
commitments
of
the
company
purchase of certain property.
Bank
ern
Company
Inc.
in connection with the
Office—1487 Northwest¬
Underwriter—
selected dealers.
•
Interstate Finance Corp. (6/16)
May 11 filed 150,000 shares of common stock.
in Chillum, Md. Of¬
To
Inc., New York.
(letter of notification) 298,500 shares of class
voting (par one cent). Price—$1
•
A common stock—non
—
be
Ionics, Inc.
Office—56 Beaver Street,
writer
portion of the net proceeds of sale of additional stock
Proceeds—For
general corporate purposes.
New York 4, ,N. Y.
Under¬
Simmons, Rubin & Co., Inc., New York, N. Y.
share.
—
drawn.^}/.-;
•'
.r ' ■ ■ /
•
will
..
(6/15)
Harnischfeger Corp.
company's short term bank borrowings. Underwriter
New York.
•
•
—The First Boston Corp.,
•
Harvey Aluminum (Inc.) (6/20-24) \
April 21 filed 750,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Proceeds
—For expansion and working capital. Office—Torrance,
(5/23-27)
fuel cell field.
The company expects to move to larger
Waltham, Mass., and it estimates that re¬
quirements for new equipment and other costs, includ¬
ing moving expenses, will amount to at least $300,000.
A portion of the proceeds of the stock sale may be ap¬
plied to the cost of constructing the new building, but
quarters
near
permanent basis for such purpose.
Office—152 Sixth
ic Insurance Bond & Share Corp.
May 10 (letter of notification) 150,000 shares of common
stock (par 50 cents). Price—$2 per share. Proceeds—For
working capital. Office — 2037 13th St., Boulder, Colo.
(par $5). Price—To be supplied by amendment. Proceeds
St.,
Charles, 111. Underwriter—Dean Witter & Co., Chi¬
"
•*.
/ '
_
;
Underwriter—None.
Henderson's Portion Pak, Inc.
(5/31-6/3)
April 18 filed: 200,000 shares of outstanding common
stock (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—4015 Laguna
ic Investors Mortgage Co., Inc.
May 6 (letter of notification) 124,500 shares of class A
common stock. Price—At par ($1 per share); Proceeds—
To increase net assets to qualify as a Federal Housing
Administration mortgage lender and for working capital.
Office
1308-20 Northern Life Tower, Seattle 1, Wash.
Street, Coral Gables, Fla. Underwriter—Burnham & Co.,
New York.
efforts, and toward expanding and broadening
development, including activities in the
and
all of New York.
—To selling stockholders. Office—333-39 North Sixth
St.
•'
working capital to be applied toward
increasing volume of business and intensi¬
Street, Cambridge^ Mass., Underwriters—Lee> Higginson
Corp., Shields & Co., and C. E. Unterberg, Towbin Co.,
Mar. 29 filed 90,000 outstanding shares of common stock
cago and New York.
fied sales
a
Underwriters—Kuhn, Loeb & Co. and Tucker, An¬
thony & R. L. Day, both of New York City,
Hawley Products Co.
an
the company does not anticipate that in excess of $400,000 of the net proceeds of this offering will be used on
Calif.
t
added to
research
May 3 filed 60,000 shares of convertible preferred stock
(par $100). Price—To be supplied by amendment. Pro-^
ceeds—To be applied to the repayment of a portion of
the
be
financing
' ;•/'.
;
(par $1).
Proceeds—Major
The underwriter states that this statement has been with¬
'* "■
—
Hsrmes Electronics Co.
Underwriter—None.
April 29 filed 751,924 shares of
common
stock. Of these
•
shares 642,854 shares are outstanding and may be sold
by the holders thereof from time to time in the over-the-
then-existing prices. 54,258 shares
offered pursuant to options out¬
standing or to be granted to employees. The remaining
54,812 shares will be offered to holders of the company's
stock
will
debt, for instrumentation and automation of laboratory
equipment, for expansion of existing manufacturing fa¬
cilities and the acquisition or establishment of additional
be
facilities, and the balance for working capital. Office—
18 Beeehwood Avenue, Port Washington, N. Y. Under¬
writers—Morris Cohon & Company and Schrijver & Co.,
outstanding convertible preferred pursuant to their con¬
version rights. Office
75 Cambridge Parkway, Cam¬
—
bridge, Mass. Underwriter—None.
•Holt, Rinehart
:
:
\
,
r
&
Winston, Inc. (5/20-24)
March 29 filed
331,740 outstanding shares of its common
stock (par
$1). Price—To be supplied by amendment,
proceeds—To
City.
selling stockholders.
Underwriters
Co. and
Office—New York
Goldman, Sachs & Co., Allen &
Shearson, Hammill & Co., all of New York.
—
• Hotel
Corp. of America
May 17 filed
$1,500,000
(6/27-7/1)
~ec.
14
(letter
mon stock
(par
of
one
convertible
notification) 60,000 shares of com¬
cent). Price—$3 per share. Proceeds
j-ior general
corporate purposes. Office—125 E. 50th
street, New York, N. Y. Underwriter—Hilton Securi¬
ties, Inc., 580 Fifth
Avenue, New York, N. Y.
•
Hudson Vitamin Products, Inc. (6/6-10)
212,500 outstanding shares of common
(par $1). Price—To be supplied by amendment.
roceeds—To selling stockholders. Office—89 Seventh
jjve.; New York. Underwriter— Bear, Stearns & Co.,
*;pr;1 15 filed
stock
New York.
•
■ c
une
Inc.
®
both
of
New
York.
Co. (5/24)
mortgage bonds due
1990. Proceeds—$5,800,000 will be applied to the pay¬
ment of a like amount of outstanding notes and the
balance to
1960 construction expenditures
(or reim¬
bursement of the company's treasury thereof). Under¬
writer
To be determined by competitive bidding.
Probable bidders: Eastman Dillon, Union Securities &
Co. (managing the books), Salomon Bros. & Hutzler
and Merrill Lynch, Pierce, Fenner & Smith (jointly).
Bids—Expected to be received up to 11:00 a.m. (New
York Time) on May 24 at the offices of General Public
Utilities Corp., 67 Broad St., New York City. Information
Meeting—Scheduled for May 20, between 10:00 a.m. and
Jersey Central Power & Light
March 24 filed $10,000,000 of first
12
noon.
Petrochemicals, Inc. (5/31-6/3)
of 7% convertible subordinated
debentures due 1970, and 55,000 shares of class A com¬
mon
stock.
Price—For debentures, 100% of principal
•
Kenrich
March 29 filed $175,000
Proceeds—$10,000
notes,
$115,000 for new plant facilities and equipment; and the
balance for general corporate purposes. Office—120 Wall
St., New York. Underwriter—First Philadelphia Corp.,
amount; and $3.50 per class
will be
A share.
applied towards the repayment of demand
New York.
(6/27-7/1)
29 filed
,Ice—$2.50
;
—
collateral trust
debentures, due July 1, 1972. Price—To be supplied by
amendment. Proceeds—For expansion program. Office—
jew York City. Underwriters — Bache & Co. and Bear,
Yearns &
Co., both of New York.
Howe Plastics & Chemical Companies, Inc.
of
(6/26-27)
April 29 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceds—For repayment of outstanding
counter market at the
of the
Itemco, Inc.
600,000 shares of
per
share.
common
stock (par $1).
Proceeds—To further the corpo-
rf Purposes and in the preparation of the concentrate
d
enfranchising of bottlers, the local and national pro¬
advertising of. its beverages, and where
cessary to make loans to such bottlers, etc. Office—
motion and
.
•
Keystone Electronics Co., Inc. (5/20)
12 filed 200,000 shares of common stock.
Feb
Of this
133,334 shares are to be offered for public sale
for the account of the company and 66,666, being out¬
standing stock, by the holders thereof. Price — $3 per
share (par 25 cents). Proceeds — For additional equip¬
stock,
if
supplied by amendment. Proceeds—For addi¬
working capital and expansion, and the balance
to
any,
wealth
reduce
Avenue,
bank
loans.
Boston,
Office—1079
Mass.
Common¬
Underwriter
— Paine,
Webber, Jackson & Curtis, Boston and New York.
Lamour
(Dorothy), Inc.
March 30 (letter of notification)
A
common
stock
(par
10
100,000 shares of class
cents).
Price—$3
per share.
Office—65 E.
Underwriter—Invest¬
Proceeds—For general corporate purposes.
55th
Street, New York 22, N. Y.
ment Securities Co. of
Maryland, Baltimore, Md.
* Lamtex Industries, Inc.
May 13 filed 100,000 shares
$5
share.
per
Office
common
stock.
Proceeds—For general corporate
Motor
—
(6/27-7/1)
of
Price—
purposes.
Ave., Farmingdale, Long Island, N. Y.
& Wohlstetter, of N. Y. City
Underwriter—Finkle, Seskis
Lasco Industries
(letter of notification) 150,000 shares of com¬
(no par). Price—$2 per share. Proceeds—To
stock
for a new building. Office—2939 S. Sunol Dr., Los
Angeles, Calif. Underwriter—Holton, Henderson & Co.,
Los Angeles, Calif.
./•'
pay
Lee Motor Products, Inc. (6/27-7/1)
May 6 filed 167,000 shares of class A common stock (par
$1). Price—$3 per share. Proceeds—$150,000 will be used
of 1960
existing obligations to banks incurred in March
to retire trade
accounts
and
for other
capital
to
purposes; approximately $50,000
finance expansion of warehouse
balance of
eral funds
will
working
be
used
facilities; and the
$207,000 will be added to the company's gen¬
and used
as
working capital. Office
4701
—
Gladstone
(5/24)
March 29 filed 75,000 shares of common stock
Price—To be supplied by amendment.
per
be
tional
to repay
Price
supplied by amendment. Proceeds—For general
funds and working capital.
Office—Evansville 8, Ind.
Underwriter—Goldman, Sachs & Co. (managing) New
York City.
: v' ■
Underwriter—B. C.
-—To
mon
Building, Minneapolis, Minn.
or
(6/20-24)
April 20 filed a maximum of 100,000 shares of common
stock, to be initially offered to its stockholders. Price
April 29
Properties,
Seturities, Inc., both of New York.
Laboratory for Electronics, Inc.
Underwriter—
.
April 20 filed 750,000 shares of common stock. Price—
$1.65 per share
Proceeds—To meet financial and loan
Harburton Financial Corp.
March 21
including
Mortgages of America, Inc.
filed $1,000,000 of 5%% collateral trust bonds.
None.
community (Hampshire Gardens) consisting of 14 build¬
•
per
with rights to expire on
share; Proceeds—For general
Price—At 100% of principal amount. Proceeds—To
repay
temporary bank loans and to purchase additional in¬
(5/23-27)
of Limited Partnership interests,
Price—$500 per unit. Proceeds—
purchase of the fee title to a garden type apartment
Morton & Company,
purposes,
March 14
Hampshire Gardens Associates
ings with a total of 134 apartments
fice—375 Park Avenue, New York.
.Price—$20
held,
Insured
April 1 filed $376,000
to be offered in units.
For
then
•
Telephone & Telegraph Co. Office—212 W. Washington
St., Chicago, 111. Underwriter—None.
members
of the Hamilton family
(company founders),, selling
stockholders. Office — Columbus, Ind. Underwriters —
Smith Barney & Co. Inc., New York City, and City
Securities Corp., Indianapolis, will co-manage the group.
Offering—Expected in mid-June,
t
stockholders.
improvements, and repayment
Inc.
May 11 filed 300,000 shares of common stock.
To be supplied by amendment.
Proceeds—To
shares
corporate
Galveston, Tex. Underwriter—Myron A.
& Co., New York.
Hamilton Cosco,
ten
June 30.-
Rosenberg St.,
Lomasney
selling
capital.
Office — 65 Seventh
Underwriters—J. A. Winston & Co.,
Inc. and Netherlands
• Illinois Bell Telephone Co. (5/27)
May 12 filed 3,047,758 shares of common capital stock
(par $20), to be offered for subscription by stockholders
of record May
27, 1960, in the ratio of one new share for
Development, Inc. (6/27-7/1)
March 30 filed 250,000'shares of common stock. Pricefin per share. Proceeds—For purchase of Pelican Island;
for improvements on
said property; and for working
capital and other general corporate purposes, including
the general development of the property. Office—714
•
Proceeds—To
inventory; for research and development; and
the balance for working
Ave., Newark, N. J.
(6/6-10)
outstanding common
Price—$10
share. Office—200 South
Craig Street, Pittsburgh,
Underwriters—Amos Treat & Co., Inc., New
York,
Bruno Lenchner,
Inc., Pittsburgh, Pa.
stock.
ment and
39
Ave., Cleveland, Ohio. Underwriter—Godfrey,
Hamilton, Magnus & Co., Inc., New York.
t
.
.
Liberty Records, Inc.
April 1 filed 150,000 shares of common stock (par 50c).
Price—Approximately $8.00 per share. Proceeds—To be
added to the company's general corporate
funds, sub¬
stantially to meet increased demands on working cap¬
ital.
Office—6920 Sunset Boulevard, Los
Angeles, Calif.
Crowell, Weedon & Co., Los Angeles,
Calif. Offering—Expected mid to late
May.
Underwriter
—
• Life Insurance Stock Fund, Inc.
May 11 filed $2,000,000 of investment ±"ians for the
mulation of shares
in the Fund.
accu¬
Office—Dallas, Tex.
Litecraft
Industries, Ltd. (5/23-27)
$750,000 of 614% subordinated sinking
debentures, due 1980, and an undetermined num¬
March
fund
29
filed
ber of
common shares, to be offered in units. Price—$50©
unit plus accrued interest from May 1, 1960. Pro¬
ceeds—For general corporate purposes.
Office—Passaic,
per
N. J. Underwriter—P. W. Brooks & Co., New York.
•
Lite-Vent
Industries, Inc.
(5/23-27)
March 25 filed 100,000 shares of common stock
(par $1).
Price—$5.20 per share. Proceeds—To be added to com¬
pany's general funds, of which $200,000 will be used for
repayment of indebtedness, $45,000 to acquire additional
roll forming machinery and equipment, $74,000 to re¬
pay advances by two officers, and the balance for work¬
ing capital and other corporate purposes. Office—14637
Meyers Road, Detroit, Mich. Underwriters—Peter Mor¬
gan & Co., and Philips, Rosen & Appel, both of New
York City.
Magnasync Corp.
200,000 shares of capital stock. Price — $5
per share. Proceeds—To repay interim loans up to $100,000 to Taylor & Co.; $100,000 for expansion of labora¬
tory facilities and personnel for research and develop¬
ment; $100,000 to increase plant production facilities;
$116,000 for tooling and production of proprietary items;
$110,000 for increase of inventory; $75,000 for research
and development; and $2,000 for documentary stamps;
$110,000 will be added to working capital; and the re¬
maining $88,400 is unallocated. Office—5546 Satsuma
Feb. 26 filed
Ave., North Hollywood, Calif. Underwriter—Taylor and
Company, Beverly Hills, Calif.
•
Magnin
(Joseph) Co., Inc. (5/31-6/3)
$1,250,000 of 15-year convertible sub¬
ordinated debentures due May 1, 1975, and 78,000 shares
of common stock (par $1).
The debentures and 35,00©
common shares are to be offered for public sale by the
issuing company and the remaining 43,000' common
March
25
filed
shares by the present stockholders thereof. Price—To be
supplied by amendment. Proceeds—For the purchase of
Specialty Shops, Inc., and the bal¬
for general corporate purposes. Office—Stockton
and O'Farrell Sts., San Francisco, Calif. Underwriter—
F. S. Smithers & Co., New York City and San Francisco.
the Blum's interest in
ance
• Majestic Utilities
Corp.
April 29 filed $300,000 of 6% convertible 10-year de¬
bentures, $250 face value, 30,000 shares of common stock,
and options to purchase an additional 30,000 shares.
It
is proposed to offer these securities for public sale in
units (1,200), each consisting of $250 face amount of de¬
bentures, 25 shares of common stock, and options to
to purchase an additional 25 common shares.
Price—
$350 per unit. Proceeds—To be applied in part payment
of a $250,310 bank loan and the balance to be added to
working capital and used for general corporate pur¬
poses.
Office
—
writer—Purvis
1111 Stout Street, Denver, Colo. Under¬
& Company, Denver, Colo. Offering—
Expected sometime in July.
Continued
on
page
40
The Commercial and
40
7'
Continued from page 39
• Miles Laboratories, Inc.
May 18 filed approximately
subordinated debentures due
..7 '
May 10 (letter of
cents). Price-$1.25 per share ProceedsFor general corporate purposes.
Office — 415 Madison
Ave., New York, N. Y. Underwriter—Edward H. Stern
& Co., 32 Broadway, New York 32, N. Y.
Stock (par 10
(5/23-27)
Maryland Credit Finance Corp.
shares, of which 25,000
shares are being sold for the account of the issuing
company, and 3,250 shares are being offered for the
account of the present holders thereof.
Price—To be
supplied by amendment. Proceeds—For working capital
and the reduction of short-term indebtedness.
Office—
Easton, Md. Underwriter—Alex Brown & Sons, Balti¬
28,250
filed
29
common
Boston
(5/31-6/3)
April 18 filed 300,000 shares of common stock, (par
of which 50,000 shares are to be offered for public
$1),
sale
250,000 shares
thereof. Price---To be
supplied by amendment. Proceeds—For additional work¬
ing capital. Office—5150 Rosecrans Avenue, Hawthorne,
Calif. Underwriter—Bache & Co., New York.
•
issuing company and
' • •:
of which
200,000 shares will be sold for the company's account
and the remaining 14,500 shares will be offered for the
account of certain selling stockholders.
Price—$3 per
share. Proceeds—For general corporate purposes. Office
—89 West 3rd St., New York City. Underwriter—Pleas¬
Feb.
shares of outstanding common
Price—To be supplied by amendment.
Proceeds
To selling stockholder.
Office — Brooklyn,
Jtf. Y.. Underwriter —Merrill Lynch, Pierce, Fenner &
Smith Inc., New York City.
stock
317,500
filed
29
•
Associates, Inc.,
April 15 filed 130,000 shares of capital stock, of which
100,000 shares will be offered for public sale by the is¬
suing company and 30,000 shares, being outstanding, by
the holders thereof. Price—To be supplied by amend¬
ment. Proceeds—To reduce outstanding indebtedness, to
payable, and for additional working
capital. Office—2308 San Felipe Rd., Hollister, Calif. Un¬
derwriter—Wilson, Johnson & Higgins, San Francisco,
accounts
.Calif.;.
..
'7/
..
McGowen Giass
Avenue,
mon
Medallion
•
„
(5/23-27)
28
Street & Co., New York, N. Y.
& Co., Inc. and
Miami Tile
& Terrazzo,
...
Inc.
stock (par $1).
Price—$4 per share. Proceeds—$150,000 as reduction of
temporary bank loans, $140,000 in reduction of accounts
payable, $65,000 to repay notes and loans payable to
Barney B. and Nathan S. Lee, and the balance for gen¬
eral corporate purposes.
Office—6454 N. E. 4th Ave.,
—
Plymouth Bond & Share
Michigan Wisconsin Pipe Line Co. (6/1)
April 20 filed $30,000,000 of first mortgage pipe line
bonds, series due 1980. Proceeds—For construction pro¬
gram. Office—500 Griswold Street, Detroit, Mich.
Un¬
derwriter— To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. Bids—Expected to be received up to 11 a.m.
(EDST) on June 1, Suite 1730, 165 Broadway, New
York.
Information
Meeting—Scheduled
(EDST), May 31, 5th floor, 20
York City.
for
11:30
Exchange Place,
•
v ■
.
a.m.
New
.
★ Midwest Technical Development Corp.
May 17 filed 561,500 shares of common stock, to be of"
fered
to holders
V
pay
an
of the
outstanding common on a onefor-one basis. Price
To be supplied by amendment.
Proceeds—For general corporate purposes. Office—Min¬
neapolis, Minn. Underwriters—Shearson, Hammill & Co.,
& Co. and Dominion Securities Corp. (jointly). Bids
—Expected to be received on May 25.
Movielab Film Laboratories Inc.
(6/20)
-May 4 filed 100,000 shares of class A common stock (par
$1) including 62,500 shares to be offered for public sale
by the company and 37,500 shares which are outstanding
.and will be offered by the holder thereof. Price—To be
supplied by amendment. Proceeds—For general corpo¬
Office—619 West 54th St., New York. Un¬
derwriter—Granbery, Marache & Co., New York.
rate purposes.
(5/31)
ing stock of record May 31, at the rate of one new share
for each three shares held. Arebec Corp., of New York,
■which owns 109,278 common shares, has entered into
an
agreement to sell said shares to the underwriter.
Price—To be supplied by amendment. Proceeds—To be
added to company's general funds and will enable it to
use all or part of the proceeds in the reduction of bank
supplied
Ave., Detroit,
Underwriter—Ladenburg, Thalmann & Co., New
York. ■
•
7
•./ 7 '77.
7-,
stock
common
& Co., Inc., New York. ListingApplication will be made to list the debentures on the
New York Stock Exchange*
at
$15 per share on and
1, 1964 through Dec. 31, 1973. Price—To be
by amendment.
Proceeds —To finance con¬
•
March 25
stock
*
.
,
held.
Indemnity Co.
(letter of notification) 15,832 shares
(par $5)
to be offered
for
Corp. (6/6-10)
(letter of notification) 100,000 shares of com¬
(par one cent). Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y.
+lof r<r?orc* at the cl°se of business
e
Offering
.
rati? bf
expires
of com-
on
Ohio
-
March
one share for each three shares
May 5, 1960. Price—$17 per
on
-J??*?;, £™.ceeds~:For working capital. Address—Cin¬
cinnati'
Underwriter—w- D. Gradison & Co., Cin-
11
mon
stock
•
subscription by
National Lawnservice
Jan.
Midwestern
-5
.
writer—Dillon, Read
Halsey, Stuart & Co. Inc., all of New York.
mon
■
Register Co. (6/2)
April 29 filed $40,000,000 of sinking fund debentures,
due June 1, 1985. Price—To be supplied by amendment.
Proceeds—To repay current bank loans and for working
capital. Office—Main and K Sts., Dayton,, Ohio. Under¬
struction of two natural gas pipe line
systems. OfficeTennessee Building, Houston, Texas.
Underwriters —
Stone & Webster Securities
Corp.; White, Weld & Co.,
and
Woodward
Mich.
Midwestern Gas Transmission Co. (5/23-27)
April 22 filed $60,000,000 of first mortgage pipe line
bonds, series due June 1, 1980, with attached warrants
for the purchase of 240,000 shares of common stock
(par $5). The bonds will be offered in denominations
of $1,000 with attached warrants for the
purchase of
'
.
National Old Line Life Insurance Co.
(6/6-10)
April 12 filed 128,329 shares of class BB (non-voting)
stock, of which 43,329 shares are to be offered
for the account of the issuing company and 80,000 shares
representing
outstanding
stock,
are
to
be
offered
for the account of the present holders thereof. Price—
To be supplied by amendment. Proceeds — For
general
corporate purposes. Office — Little Rock, Ark.
Under¬
writer—Equitable Securities Corp., Nashville, Tenn.
common
held'
—
shares held. Price—To be
—
To discharge bank
Natural Gas Co.
$3,830,000 of convertible debentures,
5y4% series due 1970, being offered to holders of its out¬
standing common stock at the rate of $4 principal amount
New Jersey
March
filed
29
of convertible debentures for each share held of record
May 6, to expire on May 27 at 3:30 p.m. (EDST).
The
debentures will be sold at principal amount in denomi¬
$50, $100, $500, $1,000 and multiplies of $1,000,
beginning Jan. 1, 1961,
at the rate of $22 of debentures for each share of com¬
and will be convertible into stock
Proceeds—To be applied to the partial payment of
mon.
short-term bank loans
outstanding in the amount of $5,000,000 and obtained in connection with the company's
construction program. Office—601 Bangs Ave., Asbury
Park, N. J. Underwriter—Allen & Co:, New York.
North
Central
Co.
(5/27)
March 11 filed 420,945 shares of common stock (par $1),
The company proposes to offer 142,860 shares for cash sale
at $7 per
are
share. Additional shares (amount unspecified)
exchange for outstanding shares of
to be offered in
North Central Life Insurance
Co., of St. Paul. The rate
supplied by amendment. Proceeds
the general funds of the company.
of exchange is to be
—To
be
added
to
Office—335 Minnesota
St., St. Paul, Minn. Underwriter
—None.
North
May
3
Washington Land Co.
$1,600,000 of first mortgage participation
filed
Price—The certificates will be offered at
discount of 17.18% from face value.
primary
1160
a
Proceeds—For the
of refinancing existing loans.. Off ice—
Pike, Rockville, Md. Underwriter—In¬
Securities, Inc. V, ■
/
purpose
Rockville
...
i
.
.
•
=■
* Northwestern Bell Telephone Co. (6/6)
May 13 filed $45,000,000 of 38-year debentures, due
1998.
Proceeds—The company intends to use a portion
of the net proceeds of the sale of the debentures to re¬
pay some
$24,600,000 of advances from its parent, Amer¬
Telegraph Co. and to deposit the bal¬
ican Telephone &
in
ance
its
general
funds.
Underwriter—To
be
deter¬
mined by
competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.; Eastman Dillon, Union Securities & Co.
.Bids—Expected to be opened on June 6, up to 11:30 a.m.,
New York
April 27 filed 217,278 shares of common stock (par $1).
"The company proposes to offer 108,000 shares of new
common stock for subscription by holders of outstand¬
City, and Piper, Jaffray & Hopwood, Min¬
of
7
vestor Service
2301
Proceeds
share for each five
new
White, Weld & Co., Eastman Dillon, Union
Securities & Co., and Blyth & Co. (jointly); Smith, Bar¬
—
share for each four shares
loans, for construction, and for general corporate pur¬
poses. Office—New Britain, Conn. Underwriter—Putnam
6 Co., Hartford, Conn...
(6/27-7/1)
National Cash
after Jan.
one
certificates.
Office
new
supplied by amendment. Proceeds
-
neapolis.
four shares
one
supplied by amendment. Proceeds—For various public
and for repayment of some interim debt.
Underwriter—To be determined by competitive bidding.
Probable bidders: Shields & Co., Halsey, Stuart & Co.
Inc. and Salomon Bros. & Hutzler (jointly); Lehman
.
York
of
$10 per share.
—
nations of
works projects
indebtedness.
of¬
ir New Britain Gas Light Co.
May 18 filed 16,000 shares of common stock, to be offered
to holders of the outstanding common on the basis of
be
Inc.
com¬
To be added to the
general funds of the company and will be used to finance
larger inventories and accounts receivable/. Office—
1521 North 16th St., Omaha, Neb.
Underwriter—None.
Price
outstanding note, purchase of land,
Namm-Loeser's
50,000 shares of
stock (par 50
at the rate
:
—
New
(letter of notification)
29
*'■
N
Insurance Co.
fered for subscription by holders of outstanding common
^ Montreal (City of), Canada (5/25)
May 6 filed $14,000,000 of sinking fund debentures for
local improvements, due 1980, and $14,000,000 of sinking
fund debentures for public works, due 1980. Price—To
•
V
1
Union Life
■fr Nebraska Consolidated Mills Co. . ,
May 11 filed 111,951 shares of common stock, to be
to general funds and will be available for the purchase
"of deferred payment accounts from Montgomery Ward
/& Co., Inc. Office—100 West Tenth St., Wilmington,
Del. Underwriter—Lehman Brothers, New York.
ney
.
cents). Price—$4 per share. Proceeds
—For expenses in the operation of an insurance com¬
pany. Address—Montgomery, Ala.
Underwriter—Frank
B. Bateman, Ltd., Palm Beach, Fl.a.
7
Brothers,
March 11 filed 125,000 shares of common
Miami, Fla. Underwriter
Corp., Miami. Fla.
Inc.
Homes,
Montgomery Ward Credit Corp.
(letter of notification) 85,700 shares of com¬
mon stock (pat" 10 cents).
Price—$3.50 per share. Pro¬
ceeds—For general corporate purposes.
Office—8608,130th Street, Richmond Hill 18, N. Y.
UnderwritersFirst Broad Street Corp.; Russell & Saxe; V. S. Wickett
March
V*-
March
mon
May 5 filed S50,000,000 of debentures, 1980 series. Price
^-To be supplied by amendment. Proceeds—To be added
Pictures Corp.
Metalcraft Inc.
/
Newark, N. J.
Ind.
National
equipment and for working capital. Office—546 Equi¬
table Building, Baltimore 2, Md. Underwriter—Ameri¬
can Diversified Securities, Inc., Washington, D. C.
Underwriter—Sim¬
J.
Elizabeth, N.
(7/5)
.
Ft. Wayne,
(letter of notification) 150,000 shares of com¬
stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—To
(5/31-6/3)
(5/31-6/3)
March 29 (letter of notification) $300,000 of 6M>% con¬
vertible subordinated debentures due March 30, 1968.
Price—At 100%.. Proceeds—For general corporate pur¬
poses. Office—200 W. 57th Street, New York 18, N. Y.
Underwriter—Hancock Securities Corp., New York, N. Y.
t
Thursday, May 19, 1960
Packaging Corp. (5/23-27)
;
of common capital stock (par $1)
Price—$6 per share. Proceeds—To retire $87,000 of in¬
debtedness, to purchase $18,000 of additional machinery
and equipment,
to set up >a small plant (at cost of
$28,000) on the West Coast to service the fruit tray and
vegetable tray business in that area, and for working
capital. Office — 3002 Brooklyn Ave., Fort Wayne Ind
Underwriter—First Securities Corp., 212 W. Jefferson St
Monarch Tile Manufacturing, Inc.
Monowall
Rubin & Co., Inc., New York, N. Y.
mons,
.
March 30 filed 60,000
April 22
April 27 (letter of notification) 150,000 shares of com¬
mon stock
(par one cent). Price—$2 per share. Pro¬
ceeds— For general corporate purposes.
Office—829
Newark
Inc.
214,500 shares of common stock,
"
'
Fibers Corp.
filed
(5/23-27)
March 22 filed 58,337 shares of common stock (par $5) of
which 30,000 shares are to be offered for public sale in
behalf of the issuing company, and the remaining 28,337
shares are to be offered for the accounts of certain selling
stockholders. Price—To be supplied by amendment. Pro¬
ceeds— For repayment of bank loans and for general
corporate purposes. Office—Oakes Street at Avenue B,
San Angelo, Texas.
Underwriter—Rauscher,; Pierce &
Co., Inc., Dallas, Texas.
/
7
:
/
'-'A-7*77'/7'77
—
reduce
5
ant Securities Co. of
(par $1).
McCormick Selph
Missile Electronics,
•
(5/23-27)
(J. W.), Inc.
Mays
March
Winkle Co.
general corporate purposes. Office—155 Sherman Ave.,
Paterson, N. J. Underwriter—Whitmore, Bruce & Co.,
New York, N. Y.
•
outstanding, by the holders
now
-
(5/23-27)
April 7 (letter of notification) 75,000 shares of class A
stock (par 10 cents). Price—$3 per share. Proceeds—For
Mattel, Inc.
for the account of the
Corp., New York, managing.
Miller & Van
Md.
more,
.
.
National
(6/24)
$8,300,000 of convertible
1980. The company pro¬
poses to offer to the holders of its outstanding common
stock of record on or about June 24, 1960, rights to sub¬
scribe for the debentures in the ratio of $100 principal
amount of debentures for each 16 shares of common
stock then held; the subscription offer will expire July
11 1960. The new debentures which will be convertible
into common stock until maturity, unless previously re¬
deemed, will be entitled to an annual sinking fund com¬
mencing July 1, 1966, sufficient to retire approximately
93% of the debentures prior to maturity. Proceeds—For
repayment of short-term debt. Underwriter—The First
Marine Corp. (6/20-24)
notification) 240,000 shares of common
* Martin-Parry
March
Financial Chronicle
(2188)
Time, at Room 2315, 195 Broadway, N. Y. City.
Nuclear
Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
stock (par 33.3 cents). Price—$10
per share. Proceeds
—To replace bank financing, reduce accounts payable,
purchase
capital.
machinery
Office—65
and
equipment and for working
St., Pleasanton, Calif. Under¬
Ray
writer—Pacific Investment Brokers, Inc., Seattle,
Obear-Nester
Glass
Co.
April 14 filed 210,045 shares of
Price
Wash.
(5/23-27)
common
stock
(no par).
To be supplied by amendment. Proceeds — To
selling stockholders. Office—Broadway and 20th, East
St. Louis, 111. Underwriter—Merrill
Lynch, Pierce, Fen¬
ner & Smith
Inc., New York.
—
™OKJ*Mbber Welders, Inc. (5/23-6/3)
Mar. 29
filed 50,000 shares
—To
common
stock
(par $10). Price
be
supplied1 by amendment. Proceeds—Together
with the proceeds of a
$1,100,000 insurance company
loan and-$700,000 realized from the sale
of installment
notes
OK
in
to its wholly-owned
susbidiary finance company,
Acceptance Corp., will be used to reduce bank loans
the amount of
$1,300,000; to repay other indebtedness
the amount of $228,600; and the balance of approxi¬
mately $800,000 will be added to working capital. Office
.in
—551 Rio Grande
Avenue, Littleton, Colo. Underwriter
—Bosworth, Sullivan & Co., Inc., Denver, Colo.
• Otarion
Listener Corp. (5/25)
March 28 filed 141,750 shares of common stock
(par 10c).
per sbare- Proceeds—Company will apply $150,-
000 to repay
existing short-term obligations to banks;
$60,000 in payment for the net assets and name of Taconic
Factors, Inc. ,the stock of which is presently owned by
Leland E. Rosemand, President and Board Chairman of
Otarion; $100,000 for dealer,
of
the
company's
new
and
consumer,
model hearing
advertising
aids; $40,000
the establishment of
production and sales facilities
for
of 3
Number 5952
Volume 191
.
The Commercial
,
and
hearing aid in the European common market;
research and development of subminiature
rnducts; and the balance of approximately $100,000 to
K added "initially to working capital and used for gen- "
IflplllHinCf finonPlflrt
«ral corporate purposes, including financing of finished
nd semi-finished inventory.
Office—Scarborough Park,
cost
-
10POO
Pyramid Electric Co.
April 1 filed 89,675 shares of
rv-tf
r\ilfY*\AC^O
to
Y. Underwriter—D. A. Lomasney & Co.,
Ossining, N.
/\
D.
1960.
Y.
Pacific Coast Properties,
of
Food
&
(6/13-20)
•
Pacific Panel
filed
8
Co.
100,000
"
—
Offering—Imminent.
/Reeves
Inc.
Inc.
(5/31-6/3)
class
of
A
G.
—
Everett
h
March 30 filed
50,000 shares of common stock. Price—To
be
supplied by amendment. Proceeds—$60,000 will be
utilized to repay the
company's indebtedness to Busi¬
Co. of Rhode Island; the balance
bank
•
Bldg.,
~
-
■
Boulevard
Schaevitz
and
Pennsauken
•
Security Industrial Loan Association
(6/13-17)
April 13 filed $500,000 of 7% convertible subordinated
debentures due May 1, 1975, and 50,000 shares of com¬
stock. Prices—To be supplied by amendment. Pro¬
be available for loans to customers. Office—-
ceeds—To
Central National
writer—Lee
•
Bank
Building, Richmond, Va. Under¬
Corp., New York.
Higginson
Service
Instrument Corp.
(5/31-6/3)
(letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds
For general corporate purposes.
Office — 693
March 23
—
Broadway, New York, N. Y. Underwriter
Murphy & Co., Inc., New York, N. Y.
—
Pearson,
'
•
Servonics, Inc. (5/31-6/3)
Feb. 25 filed 76,600 shares of common stock (par $1) to
be issued to stockholders. The company will issue trans¬
ferable subscription warrants evidencing
(a) rights to
five shares
one
held
share
new
on
the
of
record
common
date, and
stock
(b)
for each
the privi¬
lege of subscribing for such of the shares offered as are
not subscribed for upon the exercise of rights, if any,
Patterson, La.
—
George,
O'Neill
&
Co.,
Inc.,
ber
Development Corp.
(letter of notification)
of shares of
common
stock
(6/27-7/1)
an
undetermined num-
(par $1)
not to exceed
Blvd., Beaconsfield, Que¬
Underwriter—P. Michael & Co., 69 Passaic
St., Garfield, N. J.
• Savannah Electric & Power Co.
(6/16)
May 11 filed $5,000,000 of first mortgage bonds, due
1990, and $3,000,000 of debentures, due June 1, 1985.
Proceeds—For payment of outstanding notes and for
construction expenses.
Office—Savannah, Ga. Under¬
writer
To be determined by * competitive bidding.
Probable bidders; Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co. and White Weld & Co. (jointly); The
First Boston Corp.;-Merrill Lynch, Pierce, Fenner &
Smith Inc. Bids—To be received on June 16 up to II a.m.
EDT at 90 Broad St., New York City, 19th floor. Infor¬
s
mation Meeting—June 14 at 2:30 p.m.
EDTt
Shellmak
Corp.
stock. Price—At par
($2
per
150,000 shares of
common
share). Proceeds—To
pur¬
chase land and equipment for chip-n-sand courses. Offices
14702 Hawthorne Boulevard, Lawndale, Calif. Under¬
writer—Binder & Co.,
•
short-term
50 East 42nd St., New York.
—
.
Underwriter—Arnold Malkan
—
Quade, Pres., 246 Beaconsfield
is
Whitehead
•
May 2 (letter of notification)
Inc., Los Angeles, Calif.
Electric Corp.
Sierra
(5/31-6/3)
of common stock, of which
March 29 filed 100,000 shares
Fifth
bec, Canada.
York.
—
North Henry St., Alexandria, Va. Dealer-Manager—.
Kidder, Peabody & Co., New York.
supplied Mby
of
$300,000. Price—To be supplied by amendment. Proceeds
—For mining expenses. Office — c/o Wallace F. Mc-
AAAlares at the time of offering. Proceeds—To repay a
corporate purposes. Office
Office
Underwriter
Saucon
15
AVev South
River, N. J.
repayment
New York.
April 28
filed 100,000 shares of common stock, (par $1).
lce-—To be related to the current market for outstand-
siock
130
.
80,000 shares are to be sold for the account of the
issuing company and 20,000 shares are to be sold for
the account of the present holder thereof.
Price—$9
11
Dupont.
.
h.
"J** or* general
offered for sale by
Price—To-"be
(5/31-6/3)
April 29 filed 275,000 shares of common stock (par 10
cents).
Price—$3 per share. Proceeds—The company
proposes to use $50,000 to expand its efforts in the sale
of Safticraft boats nationally; $250,000 for reduction of
short-term borrowings; and the remaining $293,500 to
be advanced to du Pont, Inc. as additional working cap¬
ital necessary in the financing of increased inventories
and receivables incident to the increased sales volume of
'
hOOO.OOO short-term bank loan. Office—820 East Bald
ugle
St., Lock Haven, Pa. Underwriter—The First Bos¬
"
Route
•
Sea-Highways, Inc. (6/20-24)
May 9 filed 150,000 shares of common stock. Price—$2
per, -share.* Proceeds—For working capital. Office—PanAmerican Bank Bldg., Miami, Fla. Underwriter—John R.
Maher Associates, of New York.
per
stock
Safticraft Corp.,
Miami Court, Miami, Fla. Underwriter—Hancock
Securities Corp., New York, N. Y.
•
Piper Aircraft Corp. (5/24)
.
Office—350
to be
are
thereof.
Proceeds—For
Stamford, Conn.
(par 10 cents); Price—$3 per share. Proetls—To retire
outstanding bank loans, inventory purnuses, expansion and for working capital. Office—1900
& Fibers, Inc.
.
(letter of notification) 85,714 shares of common
(par 40 cents). Price—$3.50 per share. Proceeds
holder
Underwriter—None.
stock
an.
(5/23)
it Ridgeway Center Associates, N. Y.
May 11 filed 457 units of limited partnership interests
aggregating $2,285,000, to be offered for sale in units.
/
Price—$5,000 per unit. Proceeds—To acquire by assign¬
ment of a contract the Ridgeway Shopping Center in
subscription by stockholders at the rate of
Corp., New
2,800
Street, New York, N. Y. Underwriters—Theodore Arrin
& Co., Inc., 82 Beaver Street, New York, N. Y.; T. M.
Kirsch & Co., and Robert A. Martin Associates, Inc.,
New York, N. Y.
.
Metals, Inc. (5/31-6/3)
£Pni 20 (letter of notification) 100.000 shares of com¬
mon
un
its
Republic Graphics Inc. (5/31-6/3)
April 29 (letter of notification) 75,000 shares of common
stock (par 10 cents).
Price—$4 per share. Proceeds—
For general corporate purposes.
Office —134 Spring
,
company's working capital. Office — Soriano
mnila, Philippines. Underwriter—None.
ci
to
Republic Ambassador Associates
April 29 filed $10,000,000 of Limited Partnership In¬
terests, to be offered in units. Price—$10,000 per unit.
Proceeds—To purchase hotels in Chicago from a Webb
& Knapp subsidiary.
Office—111 West Monroe Street,
Chicago, 111. Underwriter—Lee Higginson "Corp., New
York. Offering—Expected in late June.
new
Put
dividend
(letter of notification) 75,000 shares of com¬
(par 50 cents). Price—$4 per share. Proceeds
—For
working capital. Office — 1530 Lombard St.,
Philadelphia, Pa--Underwriter — Stroud & Co., Inc.,
Philadelphia, Pa. Offering—Imminent.
'
share for each 5VZ shares held. Price — To be
supplied by amendment. Proceeds—To be added to the
•
S.
Renner, Inc.
mon
will
vA.. V/'
Vjarch 30 filed 103,452,615 shares of capital stock, to be
ottered
1N-
a
Manufacturing Co.
outstanding and
debt.
March
principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
K. I.
Underwriter—R. A. Holman & Co., Inc., New York.
one
common
Township, N. J. Underwriter—Woodcock, Moyer, Fricke
& French, Inc., Philadelphia, Pa.
Ave., N. Y. Underwriter
—Glore, Forgan & Co., New York;
/ *
\\
added to
working capital for general corporate pur¬
Inc..
present
amendment.
poses,
Oil Development Co.,
now
the
indebtedness; $25,000 for ad¬
52
for
Engineering (5/24)
(letter of notification) 100,000 shares of class
stock (par 10 cents).
Price—$3 per share.Proceeds—For general corporate purposes. Address—U.
A
822
are
■
Broadway, New York. Underwriter
Parks & Co., Inc., New York,
•
Pearson Corp. (7/11-15)
Philippine
Schaevitz
subject to allotment. Price—To be supplied by amend¬
ment. Proceeds—For general corporate purposes. Office
Reliance
common
machinery and equipment; and $118,752 for
working capital, promotion and advertising.
Office—
be
as
March 28 filed 150,000 shares of common stock (par
$5),
of which 40,000 shares are to be offered for
public sale
for account of company.
The remaining 110,000 shares
Proceeds—About $162,000 will be applied
Development
distributed
Price—$5 per share. Proceeds—To pay
$110,000 bank note and for general corporate purposes.
Office—304 East 44th St., New York.
Underwriter—
Laird & Co. Corp., New York.
ditional
ness
and
•
March 29
stockholders.
Note—The underwriters
(6/13-17)
shares
certain
share
per
—Johnson, Lane, Space Corp., Savannah, Ga.
subscribe for
March 30 filed 487,392 shares of common
stock, of which
300,000 shares are to be publicly offered and 187,392
shares are to be purchased by Christiana Oil at
$4.75
Patrick County Canning Co., Inc. (5/31-6/3)
March 25 filed 140,000 shares of common stock. Price—
to the
payment of
Broadcasting & Development Corp.
(6/13-17)
York, N. Y.
share.
(letter of notification) 15,000 shares of com¬
(par $5). Price — $20 per share. Proceeds
general corporate purposes. Office — Village of
Greene, County of Chenango, of New York. Underwriter
—George D. B. Bonbright & Co., Rochester, New York.
—
per
22
stock
For
Savannah Newspapers, Inc.
(6/8)
April 20 filed. 480,000 shares of - common stock (par $1).
Price—$5.25 per share in lots of 20,000 or more; other¬
wise $5.55 per share. Office—Savannah, Ga. Underwriter
mon
Raymond
mon
• Pan American Envelope Co., Inc.
May 10 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—For
payment of a loan, equipment mortgages, purchase of
new
folding and printing equipment, inventory, promo¬
tion and
advertising, etc. Office—6700 N. W. 35th Ave.,
Miami, Fla. Underwriter
Merritt, Vickers, Inc., New
$3
Co., Inc., Long Island City, N. Y.
March
Giant
*"'•
Offering—Ex¬
.
lifts, equipment, working capital, etc. Address—Rangeley, Maine. Underwriter—None.
stock,
subsequently increased to 150,000 shares (par 50 cents).
Price—$3.
Proceeds—-For reduction of indebtedness,
for working capital; for establishment of three addi¬
tional outlets and to provide additional working capital
for a new subsidiary.
Office—1212 West 26th Street,
Vancouver, Wash. Underwriter—Frank Karasik & Co.,
Inc.
Broadway, New York.
in late May.
★ Rangeley-Saddleback Corp.
May 10 (letter of notification) 25,466 shares of common
stock. Price—At par ($10
per share). Proceeds—For ski
ceeds—$906,000 toward cost of property acquisition and
the remainder for general corporate purposes.
Office—
Beverly Hills, Calif. Underwriter—Bear, Stearns & Co.
Feb.
Office—52
Rajac Self-Service, Inc. (7/11-15) f7
18 (letter of
notification) 100,000 shares of com¬
mon stock
(par 10 cents). Price—$3 per share. Proceeds
—For general corporate
purposes.
Office—11 E. Second
Street, Mt., Vernon, N. Y. Underwriter—Walter R. Blaha
Markets, Inc. common, '
preferred, and employee stock options. Price—For re¬
mainder of offering to be supplied by amendment. Pro¬
.
in
March
April 19 filed 2,682,801 shares of common stock (par $1),
of which 917,835 shares will be offered at $10 per share
holders
issued
were
41
a
rities, Inc., New York, N.
have withdrawn.
the
warrants
•
(letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—
For purchase of equipment, raw materials and working
caiptal. Office—622 E. Glenolden Ave., Glenolden, Pa.
Underwriters—Jacey Securities Co., and First City Secu¬
to
The
Fuller
pected
Feb. 29
•
share.
a
employees. At present there are 89,675 warrants
outstanding. The warrants are exercisable until June 25,
filed 240,000 shares of class A common stock (par
$1), of which 160,000 shares are now .outstanding and
are'to be offered for public sale by the present holders
thereof and the remaining 80,000 shares will be offered
by the issuing company.
Price — To be supplied by
amendment. Proceeds—$150,000 will be used for the
purchase of additional machinery and equipment to be
installed in certain new manufacturing plant facilities,
construction of which has been completed; the balance
of the proceeds will be used for general corporate pur¬
poses.
Office—151 Spring Street, N. W., Atlanta, Ga.
Underwriters—W. C. Langley & Co., New York; and
Courts & Co., Atlanta and New York.
'
v
Pacemaker Boat Trailer Co.,
per
warrant at
and
May d
•
$3.25
share for each
one
May, 1954, in connection with a previous pub¬
offering and included 46,000 to the underwriter, S.
& Co., and 46,000 to the
company's officers
lic
V
Oxford Manufacturing Co., Inc.
the rate of
and after
Ott
March
Illinois.
of
price
Chemical Co. (5/23-26)
17 filed $450,000 of convertible subordinated
debentures due May 1, 1970. The company proposes to
Affpr the debentures for subscription by common stock¬
holders of record May 1, 1960, at the rate of a $100
debenture for each 3.11 shares then held.- Price—100%
nf principal amount. Proceeds—For retirement of a .note,
for
additional and improvements to properties, for
eciuipment and the balance for working capital - and
other purposes.
Office — 500 Agard Road, Muskegon,
Mich. Underwriter—H. M. Byllesby & Co., Inc., Chicago,
stock to be issued
common
holders of the company's
outstanding stock purchase
warrants at
York.
ftew
(2189)
*nc'' ^ew York, N. Y. Note—This issue is to be
withdrawn, and a new filing will be made by Pearson,
Murphy & Co., Inc.
for
V
Financial Chronicle
for
share (par $1). Proceeds—To reduce bank loans and
working capital. Office—Gardena, Calif. Underwriter
—Marron, Sloss & Co., Inc., New York City.
Precision
Simmonds
~
March
filed
30
112,500
Products, Inc. (6/6-10) :
shares of common stock (par
$1) constituting its first public offering, of which 100,000
shares are to be offered for public sale by the issuing
and 12,500 shares being outstanding stock, by
Geoffrey R. Simmonds, president. Price — To be sup¬
company
— To
be added to com¬
thereby reducing the amount
funds required to be borrowed under its revolving
plied by amendment. Proceeds
pany's
of
credit
capital,
working
and putting the company in a more
position to secure, through borrowings, such
funds as may be required from time to time.
agreement
favorable
additional
Office—105 White Plains Rd., Tarrytown,
N. Y.
Under¬
writer—Shearson, Hammill & Co., New York.
•
Sire Plan of
March
filed
9
Normandy Isle, Inc. (5/31-6/3)
of 10-year 7%. debentures
$225,000
and
4,500 shares of $3.50 cumulative, non-callable, partici¬
pating preferred stock (par $5), to be offered in units,
each unit consisting of one $50 debenture and one pre¬
ferred share. Price—$100 per unit.
Proceeds — To fi¬
nance
acquisition.
Office—Ingraham
Bldg., Miami, Fla.
Underwriter—Sire Plan Portfolios, Inc., New York.
Skyline Homes, Inc.
April 15 filed 115,000 shares of class A common stock
(par $1).
Price—To be
ceeds—To
and
be
for
used
added
general
to
supplied by amendment.
the
Pro¬
company's working capital
corporate purposes.
Office—2529
By-Pass Road., Elkhart, Ind. Underwriter—Rodman &
Renshaw, Chicago, 111. Offering—Expected in mid-June.
•
Smilen
March
Food
filed
25
Stores,
in
Inc.
association
(5/31-6/3)
with
Heritage Industrial
Smilen common (par $1) and
200,000 shares of Heritage (par $1). It is proposed to offer
these
securities
for
public sale in units, each unili
consisting. of one share of Smilen and one share of
Heritage stock. Price—To be supplied by amendment.
Proceeds—Smilen will use $95,000 of its share of theproceeds for remaining payments
under a contract
for
purchase of two supermarkets and commissary
from
Windmill
Food
Stores, Inc.;
$300,000 for in¬
ventory and supplies for the opening of three new
supermarkets;
$300,000
to
repay
bank
loans;
and
the
balance
for
general
corporate purposes.
Heri¬
tage
will
use
its
share
of
the
stock
as
follows:
$175,000 for construction and equipping of a supermar¬
Corp.
ket
in
200,000 shares of
Franklin
Square, L. I., to be leased to Smilen;
$500,000 to purchase fixtures and equipment to be leased
to Smilen for use in the three supermarkets to be con¬
structed
for
debtedness
Smilen
due
by
Smilen;
others; $25,000 to pay an in¬
and the balance for general
Office — 47-02 Metropolitan Ave.,
Underwriter—Federman, Stonehill &
Co., New York City.
corporate
Brooklyn,
purposes.
N. Y.
•
Continued
on
page
42
and Financial Chronicle
The Commercial
42
•
Continued from page 41
•
Southern
(6/2)
Generating Co.
Electric
bidders:
Halsey,
construction.
by
plied
common.
•
The company
of
some
whom
are
directors
and
Cedar
it shall acquire to other persons
may
be stockholders, officers
or
directors
the
of
com¬
Office—Chicopee, Mass. Underwriter—None.
pany.
•
(not exceeding 15) who
Spartans Industries, Inc.
March
31
filed
shares of common stock (no par). These secu¬
consisting
and 240,000
rities
of
to be offered for sale in units, each
are
$1,000 debenture (with 5-year warrants to purchase
20 common shares initially at $15 per share) and 40
shares of common stock. Price — To be supplied by
a
amendment. Proceeds—For repayment of current
credit
agreement with bank and the balance will be applied to
the company's construction program.
Office—445 Fair¬
field Ave., Stamford, Conn. Underwriters — Ladenburg,
Thalmann & Co., Bear, Stearns & Co. and Sutro Bros.,
all of New York.
•
.
Texas
Capital Corp.
May 4 filed 350,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
used to
provide investment capital and management
small
to
business
concerns.
Office—705
Lamar
Blvd., Austin, Texas. Underwriter—Dempsey-Tegeler
&
Co., St. Louis, Mo. Offering—Expected sometime in June.
Texas
Eastern
Transmission Corp.
(5/25)
April 11 filed $25,000,000 of debentures, due 1980. Price
—To be supplied by amendment. Proceeds—For the re¬
duction
indebtedness
of
Office—Houston,
and
Texas.
construction
for
expenses.
Underwriter—Dillon, Read
&
Co., Inc., Nw York City.
•
Thermal
Feb.
26
Industries
filed
Price—$6
company's
Florida,
120,000 shares of
Inc.
common
(5/23-27)
stock (par $1).
per
Tourist Industry Development Corp.
outstanding shares of common
stock (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office — 1 West 34th
March 22 filed $2,250,000 of 7%
subordinated debenture
St., New York. Underwriters—Shearson. Hammill & Co.,
stock, due July 1, 1978, to be offered in denominations
of $500 and $1,000 and multiples of
$1,000. Price—At
100% of principal amount. Proceeds—For general corpo¬
and J. C. Bradford &
rate
Co., both of New York.
April 27
mon
(letter of notification) 150,000 shares of com¬
(par one cent). Price—$2 per share. Proceeds
stock
—For
general corporate
purposes.
Office—847 E.
York
Avenue,
Brooklyn, N. Y.
Underwriter
Krieger & Co., Inc., New York, N. Y.
—
New
J.
J.
May 9 (letter of notification) 400,000 shares of common
stock (par 50 cents). Price—75 cents per share. Proceeds
—For organization expenses, plant
construction, inven¬
tory and working capital. Office — Spokane Industrial
Park, Spokane 69, Wash. Underwriter—None.
Spring Street Capital Co. (5/24)
1 filed 3,000 shares of common stock
March
(par $100)
portion
the costs and expenditures inci¬
it has
as
in¬
an
Office—650 South
Spring St., Los Angeles, Calif. Underwriter—William R
Staats & Co., Los Angeles, Calif.
•
Stefma, Inc. (6/27-7/1)
May 10 filed 175,000 shares
of outstanding common
Price—To be supplied by amendment.
Proceeds
stock.
—To
selling
stockholders.
Office
Underwriter—Amos Treat & Co.
•
Straza
March
14
Price—To
Industries
Stamford, Conn.
Inc., New York City.
(5/23-27)
—
filed 230,000 shares of
capital stock
be supplied by
amendment.
(par $1).
Proceeds—For
general corporate purposes and
working capital. Office—
790 Greenfield
Drive, El Cajon, Calif. Underwriter—J.
Hogle & Co., of Salt Lake City and New York.
Super Food Services, Inc.
A.
.
60,000 preferred shares-convertible series
cumulative
dividend), $1 par. The com¬
pany proposes to sell 50,000 shares
through a group of
underwriters headed by Wm. H.
Tegtmeyer & Co., Chi($l.o0
annual
c?f°\ *"• °,n a .flrm commitment basis;
and
by
a
pre-
offenng subscription Central Securities
Corp. has con¬
ditionally agreed to purchase 10,000 such shares.
Price—
per share for public
offering. Proceeds—To provide
11? no?
313,003
;
f«L!iXerC!?e arl ?ptiJ°-n t0 Purchase
issued
72,600 of the
and
outstanding shares of
Progressive Wholesale
Grocery Co., at a
gregate price of $1,333,333.
Office-lcMcago
including hotel and restaurant loans
estate
common
maxZum
Ilh
of
ag-
..
;
200,000
To selling stockholders. Office
—
—
557
Salt Lake City, Utah. Underwriter—
Allyn & Co., Inc., Chicago, 111.
A. C.
Manufacturing Co., Inc.
standing, by the holders thereof. Price—To be supplied
by amendment. Proceeds — For expansion. Office —
Southampton, Pa. Underwriter—Paine, Webber, Jackson
& Curtis, New York.
'
.
•
Inc. (5/23)
April 112 filed 200,000 shares of class A common stock
"(par 25 cents). The offering will include 175,000 shares
to be issued by the company and 25,000 shares which
are
outstanding and will be offered for the account of
Viewlex,
the holders] thereof.
Price—$4 per share. Proceeds—
$100,000 will be used to purchase additional high speed
production equipment; $150,000 for research
of new products; $75,000 to be re¬
cover
the costs of moving present facilities
automatic
and
development
served
into
to
and
new
working
Island
New
•
enlarged
Underwriter—Stanley Heller & Co.,
City, N. Y.
Vulcatron
set
quarters; and the balance for
—
35-01 Queens Blvd., Long
York.
March
mon
Office
capital.
(5/25)
Corp.
11
(letter of notification) 100,000 shares of com¬
stock (par $1). Price—$3 per share. Proceeds—To
a plant and equipment, to purchase machinery
equipment, and for working capital. Office—c/o
up
and
L.
Berger,
Washington St., Boston, Mass.
& Co., Inc., Boston, Mass.
209
Underwriter—P. de Rensis
Wallace
Inc. (5/31-6/3)
principal amount
Properties,
of 6% con¬
debentures, due June 1, 1975 and
360,000 shares of common stock (par $2), to be offered
only in units, each consisting of $100 principal amount
April 5 filed-$12,000,000
vertible subordinated
of
three shares of
debentures and
—To be
May 9 (letter of notification) 279,000 shares of common
stock to be offered for
subscription by common stock¬
holders two for one and by preferred stockholders four
Price—30 cents per share. Proceeds—For work¬
stock.
common
Price
supplied by amendment. Office—Dallas, Texas.
Ripley & Co., Inc., New York.
Underwriter—Harriman
Waitkam
Precision
Instrument
Co.,
Inc.
(5/31-6/3)
April 15 filed 700,000 shares of
common
It is proposed
• Transtates Petroleum Inc.
one.
(5/23-27)
April 14 filed 250,000 shares of common stock (no par).
Of this stock, 100,000 shares are to be offered for public
sale by the issuing company and 150,000 shares, now out¬
se¬
mortgages. Office—Jerusalem, Is¬
that this offering will be
basis
company's
the
to
present
Price—To be supplied by
to
pay
balance
the
Manufacturing
of
stock (par $1).
subscription
stockholders.
on a.
common
amendment. Proceds—$600,000
purchase price for Boesch
the
Co., Inc. stock; $350,000 to pay the 5%
Underwriter—None.
chattel mortgage note held by the Secretary of the U. S.
Treasury as assignee of the Reconstruction Finance Corp.;
•
$200,000 to
ing capital. Office—149 Broadway, New York 6, N. Y.
Trans Tech
one
Systems, Inc.
(6/27-7/1)
65,000 shares of common stock (par
cent). Price—$10 per share. Proceeds—For general
March
29
filed
corporate
to be offered in units of five shares at
$1,000 per share.
Proceeds—For loans to and the purchase of securities
of certain business concerns. It
may also use a
of the proceeds to pay
dental to its operatons until such time
come from its loans and
investments.
by real
rael. Underwriter—None.
for
-k Spokane Enterprises, Inc.
•
purposes,
cured
Speed-Way Food Stores Inc.
be
First Security Bldg.,
William
of
share.
Proceeds—To^ be added to the
general reserves.
Office—Miami, Fla. Un¬
derwriter—Peter Morgan & Co., New York.
(5/24)
120.000
filed
31
Vector
Teleregister Corp. (5/31-6/3)
30 filed $6,000,000 of 6% subordinated sinking
fund debentures, due May 1980 (with attached warrants)
services
Spalding & Bros. Inc. (6/7)
May 2 filed 85,484 shares of common stock, to be of¬
fered for subscription on the basis of one new share for
each 10 shares held of record June 7, 1960. Price—$20
per share. The Pyramid Rubber Co., the largest individ¬
ual stockholder, owning 178,978 shares, has agreed to
purchase at the offering price within five days after
the expiration of the subscription offer (June 24, 1960),
all of the stock not sold to the company's stockholders.
Pyramid Rubber may within 30 days thereafter resell
for investment at the offering price some of the stock
G.)
to
(5/31-6/3) V
'!:/
outstanding shares of common
(par 10 cents). Price—To be supplied by amend¬
Reduction Co.
Uranium
ment. Proceeds
•
reserve
Springs, Dallas, Tex. Underwriter—None.
(A.
•
March
stock
March
the
requirements with respect to
additional insurance in force thus acquired. Office—2013
legal
stock
Co., Inc., N. Y. C.
together with stock purchase warrants for
23.859 shares, for purchase for investment. Price—To be
supplied by amendment. Proceeds—To be used for the
company's general insurance business, thus enabling the
company to acquire additional reinsurance agreements
with other insurance companies, service such agreements
meet
.
6M>% convertible subordin¬
Price —100%
of principal
used to eliminate an out¬
additional
outstand¬
ing accounts payable. Office—35-16 37th Street, Long
Island City, N. Y.
Underwriter—Milton D. Blauner &
company,
and
shares
purposes, and the balance will be utilized for working
capital, including a later repayment of $45,000 to U. S.
Corp. Office —27 Haynes Avenue, Newark, N. J.
Underwriter—Richard Bruce & Co., Inc., New York.
working capital, to be used in part to reduce
persons,
of
be
(5/23-27)
350,000
Pool
standing bank loan of $700,000 and to provide
(6/1)
stockholders
Corp.
1970.
Proceeds—To
amount.
by common stockholders of record May 1, 1960, at the
of one new share for each 2>k shares then held.
be offered to certain
due
debentures
ate
238,590 shares of common stock (no par).
proposes to offer this stock for subscription
shares will
Industries
Teiectro
filed
28
publicly offered. Price—$2 per share. Proceeds—$221,826 will be applied to the repayment of loans to United
States Pool Corp. which were used for general corporate
Los Angeles, Calif. Underwriter — Dean
City and Los Angeles.
March 21 filed $1,000,000 of
rate
Unsubscribed
March
Witter & Co., New York
•
(6/20-27)
of common
United States Boat Corp.
11
Ave.,
New York City.
Brothers,
(5/31-6/3)
Telecomputing Corp.
Citrus
new
Southwest Indemnity & Life Insurance Co.
(par $1).
for addi¬
Under¬
filed 100,000 outstanding shares of common
stock (par $1). Price—To be supplied by amendment.
Proceeds —To
selling stockholder. Office — 915 North
White, Weld & Co., New York City.
Mar. 29 filed
distributed
working
April
capital
working
general corporate purposes, and the balance will be
to holders of the capital stock prior to the
issuance and sale of the units.
Office—425 Soath La
Brea Avenue, lnglewood, Calif.
Underwriter—Lehman
for
capital. Office—Florence, Ala.
writer—Marron, Sloss & Co., Inc., New \ork.
plant. Office—444 First
National Bank Building, Phoenix, Ariz. Underwriter—
of
(5/31-6/3)"-
$6,000,00u of convertiole subordinated
April 1, 1975, and 120,000 shares of cap¬
stock, to be offered in units of $100 of debentures
shares. Price—To be supplied by amend¬
Proceeds—Approximately $l,000,u00 will be used
ital
~
Inc.
—
Price—To be sup¬
Proceeds—For
amendment.
construction
the
Co.,
April 15 filed 250,000 shares of common stock
Price
$5 per share. Proceeds — Principally
tional
Industries, Inc.
shares of
filed
debentures due
and two capital
;
Development
Swimming Pool
(5/31-6/3)
(5/23-27)
Jan. 29 filed $12,000,000 of 6Vi% subordinated income
debentures, due Jan. 1, 1985 and 360,000 shares of com¬
mon
stock (par $1), to be offered in units of $100 of
debentures and 3
30°'
Marcn
ment.
•
Southwest Forest
.
Higginson Corp., New York City.
Inc.;
Co.
&
Stuart
be
Price—To
Merrill
Lynch, Pierce, Fenner & Smith Inc., and Blyth & Co.,
Inc. (jointly); Morgan Stanley & Co.; White, Weld &
Co. and Kidder, Peabody & Co. (jointly); Eastman Dil¬
lon, Union Securities & Co.; Equitable Securities Corp.
and Drexel
& Co. (jointly).
Information MeetingScheduled for May 31, 1960, at the First National City
Bank of New York, 5th floor, 20 Exchange Place, New
York City at 3:00 p.m. (EDST). Bids—Expected to be.
received on June 2, or subsequently on such day and
time as shall be designated by th§. company by tele¬
graphic notice to prospective bidders.
Bids are to be
presented at room 1600, 250 Park Avenue, New York
City..
"'
' '
' '
'
'
/'■
and
Thursday, May 19, 1960
.
Financial Corp. of California
United
•
1
stock (par $1).
supplied by amendment. Proceeds--For
Office—Bristol, Conn. Underwriter—Lee
(5/26)
Superior Electric Co.
March 17 filed 150,000 shares of common
Aprii 25 tiled $40,000,000 of first mortgage bonds, series
of 1960 due June 1, 1992. Proceeds—For capital expen¬
ditures. Office—600 North 18th Street, Birmingham, Ala.
Underwriter—To be determined by competitive bidding.
Prooabie
.
.
(21S0)
purposes.
Office —5505 Wilshire Blvd., .Los
Angeles 48, Calif. Underwriter—Myron A. Lomasney &
Co., New York.
Tri-Point
March
mon
Plastics, Inc.
(letter of notification)
15
stock (par 10 cents).
150,000 shares of
Price—$2
—For general corporate
purposes.
per
com¬
share. Proceeds
Office—175 I. U. Wil-
lets Road, Albertson, L. I., N.
Y. Underwriter—Martinelli, Hindley & Co., Inc., New York, N. Y.
• Triumph Storecrafters Corp.
May 18 filed 145,000 shares of common stock. Price—To
be supplied
by amendment. Proceeds—For general cor¬
Office—Houston, Texas. Underwriters
—Hardy & Hardy, New York City, and First Southeast¬
ern
Co., Columbus, Ga.
porate
purposes.
• Underwriters National Assurance Co.
May 12 filed 240,000 shares of common capital
Price—$7.50
per
share.
stock.
Proceeds—For general corporate
including payment of operating expenses, the
of the insurance business, and for
working
capital (and including $50,000 which will be certified to
State authorities for
investigation and examination by
purposes,
carrying
it to
on
the certificate of authority to transact in¬
business). Office—1939 North Meridian
procure
surance
St., In¬
Underwriter—David L. Johnson & As¬
Indianapolis, Ind.
dianapolis, Ind.
sociates, Inc.,
United
Components, Inc.
2, filed 110>000 shares of
10,000 shares
are
director, at $2.50
to
be
offered
Proceeds
—
For
common stock, of which
to
Sheldon
Leighton,
a
per
new
the 6% secured notes issued
the
balance
purposes.
for
part pay¬
as
of Electro-Mec Laboratory, Inc.;
and
other corporate
Office—221 Crescent St., Waltham, Mass. Un¬
working
capital
and
derwriter—Schweickart & Co., New York.
Warren
*
Industries, Inc.
(6/13-20)
April 29 filed 275,000 shares of common stock (par $1),
of which 175,000 shares are to be issued and sold by
the company and 100,000 shares which are outstanding
and will be offered for the account of the holders thereof.
Price—$3 per share. Proceeds—$50,000 to purchase new
equipment; $25,000 for research and development; $25,000
for advertising and promotion;
$200,000,to acquire and
open
new
facilities; $23,649 for payment of notes to
stockholders, and $78,100 for working capital. Office—
3701 N. W. 51st St.,
Miami, Fla. Underwriter—Merritt,
Vickers, Inc., of New York City.
• Washington Gas
Light Co.
(6/7)
■
May 12 filed $12,000,000 of refunding mortgage bonds,
series due June 15, 1985. Proceeds—To be added to the
company's general funds and applied in part to the companv's 1960 construction program and to the retirement
of
$5,305,000 of long-term debt. Underwriter — To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; East¬
determined
man
Dillon, Union Securities & Co.; Equitable Securi¬
Corp. Information Meeting—Scheduled for June 3
in Room 238, 43
Exchange Place, New York, at 11 a.m.
ties
(EDT).
(EDT)
Bids—Exoected
on
June
7,
to
Room
be received
1106,
1100
up
H
to 11:30 a.m.
Street,
N.W,
Washington, D. C.
share and the remainder is to be
publicly offered. Price—To be supplied by amendment.
equipment, advertising, and other
corporate purposes. Office—Orange, N. J
Un¬
derwriter—Darius, Inc., New York City.
general
pay
ment for the stock
•
Weils
Jan.
rants
29
Industries
filed
for
the
Corp.'
300,000 shares of common stock and war¬
purchase of an additional. 100,000 shares.
Price—-To be supplied
by amendment.
Proceeds y$350,876 will be used to retire certain debts, with the
remainder to be used for construction, equipment, and
working capital.
Office—6505
Wilshire Boulevard,
Los
Number 5952
191
Volume
.
,
,
The Commercial
and Financial Chronicle
Underwriter—A. T. Brod & Co., New
Angeles, Calif,
City.
★ Chicago, Burlington & Quincy RR. (6/7)
will be received by tne Road on June 7 for the
purchase from it of $2,55u,000 of equipment trust certifi¬
Bids
York
Westmore, Inc. (6/13-20)
o
(letter of notification) 150,000
tnnk
S
shares of
cates. Probable bidders:
common
$2). Price—$2 per share. Proceeds—For gencorporate purposes. Office—137 South Ave., Fan-
March 10 it
to file
March 11 it
tures
or common stock in the Fall.
This type of financ¬
ing would be contingent upon the ability of the company
to get its presently outstanding 4% debentures converted
into
stocfc.
Con Edison this year will spend
$225,000,000 on new construction compared with
$222,000,000 in 1959 and $189,000,000 in 1958.
For the
five years through
1964, Mr. Forbes estimated that the
utility would spend $1.2 billion for plant expansion. To
finance the five-year program he said the company will
have to issue some $800 million of securities of one kind
or
Co.
with base value of $73,101,600.
issue and sell first mortgage
$8,000,000 of sinking fund debentures due
Price—To be supplied by amendment. Proceeds—
be added to the general funds of the company and
1980.
general corporate purposes. Office;—New York,
Underwriters—Smith, Barney & Co. Inc. and Gold¬
Sachs & Co., both of New York. Offering—Expect¬
early June. ■
;vv'
:"/
///\';
than
minal
funds
in
advanced
connection
with the
ter¬
recently constructed in North Bergen, N. J. and
for expansion and improvement.
Office—
balance
the
460 12th
Kletz &
Avenue, New York. Underwriter—Michael G.
Co., Inc., New York. Offering—Expected in late
May.
■
" -
•
-
•
■
•
- -f
*
■
the
company
are
,
to be offered
ers
cents) of which 150,000 shares are
to restore
Acme Steel Co.
improvements during 1960-63, inclusive, have been proj¬
ected to cost between $40,000,000 and $45,000,000.
It is
anticipated that a substantial proportion of this money
will be
forthcoming from depreciation and retained
earnings. In audition, the sale of $10,000,000 of preferred
.
stock in 1960 is
all capital
planned to supply a part of these over¬
requirements. Office—Chicago, 111.
★ American Sterilizer Co.
May 17 it
reported that the company contemplates
was
the
filing of
Underwriters
about
—
150,000
shares
of
common
stock.
Glore, Forgan & Co., New York, and
Ohio.
Fulton Reid & Co.,
Inc., Cleveland,
★ Atlantic Coast Line RR. (6/8)
Bids will be received
by the Road on June 8 for
chase from it of
cates.
mon
★ Avnet Electronics
Corp.
May 17 it was reported that the company contemplates
the
filing of about $2,000,000 of convertible debentures
sometime in June. Proceeds—For expansion and general
corporate purposes.
Office—70 State St., Westbury,
L. I.,
Underwriter—Hemphill, Noyes & Co., New York.
Baiting
March 3 it
Gas &
was
dent, that the
Electric Co.
announced
Proceeds
bidding.
competitive
company
Presi¬
plans record construction expen¬
ditures
of $50,000,000 during
1960, probably financed
mrough the sale of first mortgage bonds. Offering—Ex¬
pected
during the first half of 1960.-
Hills Power & Light Co.
^en. 11 ft was announced that the Federal Power Com¬
p
mission has authorized
this
utility, of Rapid City, S. D.,
9c7ls?ye. 7,727 shares of
J° dividend
common stock (par
present common holders.
$1) as a
No fracissued, and stockholders will have
e
°Ption of buying the additional fractional interest re¬
quired to make full
shares, or to sell their fractional in¬
to its
i°nal shares will be
terests.
pDPe"traJ Winois
do- 3
it
was
Electric & Gas Co. (7/12)
reported that about $10,000,000 of first
;M-year mortgage
o
be
bonds will be filed. Underwriter—
determined by competitive bidding. Probable bid-
SS?\,Halsey.
and
stuart & Co. Inc., Kidder, Peabody & Co.,
& Co.
(jointly); First Boston Corp.,
ailr & Co-, Merrill Lynch. Pierce, Fenner & Smith Tnc
Pv! Stone & Webster Securities Corp. (jointly). Bids
White,
Weld
pected to be received
on
July 12.
Probable bidders:
For
bonds
—
& Co. Inc.; White, Weld & Co.,, and
Shields & Co. (jointly); Morgan Stanley & Co.; The
First Boston Corp.,. and Harriman Ripley & Co., Inc.
For debentures—Morgan Stanley & Co.
Halsey,
Stuart
Dynamics,
Inc.
that the company plans regis¬
shares of preferred stock (par $100).
Underwriter—To be determined by competitive bidding.
Probable bidders: Harriman Ripley & Co.; Eastman Dil¬
lon, Union Securities & Co., and Salomon Bros. &
Hutzler
(jointly); Equitable Securities Corp.; Kidder,
Peabody & Co., and White, Weld & Co. (jointly). In¬
formation Meeting—Scheduled for July 5, 1960. Bids—
Expected to be received on July 7.
Registration —
50,000
Scheduled for June 3.
•
Gu2f States Utilities Co.
(6/27)
reported that the company will issue and
was
sell
$17,000,000 of 1st mtge. bonds. Underwriter—To be
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc. and
White, Weld & Co. (jointly); Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly);
Lehman Brothers. Proceeds—To pay short-term con¬
struction loans and for expansion purposes. Bids—Ex¬
determined
pected to be received
June 27 at 12
on
noon
formation Meeting—Scheduled for June
EDT.
In¬
10:30
a.m.
15 at
Hayes Aircraft Corp.
was reported that an issue of convertible de¬
is being discussed and may occur in the next
Feb. 12 it
bentures
few months. Office—Birmingham, Ala. Possible Under¬
writer—Sterne, Agee & Leach, Birmingham, Ala.
Houston
March
22
Lighting & Power Co.
it
in
announced
was
the
company's
annual
report that it anticipates
approximately $35 million in
required in 1960 to support the
money will be
year's construction program,
new
and to repay outstanding
Studies to determine the nature and timing
bank loans.
of
the
issuance
of additional securities are presently
Last August's offering of $25,000,000 of 4V&%
under way.
first mortgage bonds was headed by Lehman
Eastman Dillon, Union Securities & Co. and
Bros.
Hutzler.
&
Office
—
Electric
Brothers,
Salomon
Building, Houston,
Texas.
Idaho
writer
improvement of the company's electric and
gas
service facilities in a 65-county area outside of
Greater Detroit. Underwriter — To be determined by
(7/7)
announced
was
of
To be used to finance the continuing expan¬
—
on
debentures for
and
issue
Power
30
it
reported that the company plans to
$15,000,000 of 1st mortgage bonds due
Proceeds—For capital
expenditures, etc. Under¬
sell
and
1990.
Co.
was
To
—
Probable
be
determined
bidders:
by
competitive
bidding.
Halsey, Stuart & Co. Inc.; Blyth
&
'Co.-, Inc., Lazard Freres & Co. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler and Eastman Dil¬
lon,
Union
Securities
&
Co.
curities Corp.
Illinois
April 29
Bell
it
(jointly);
Equitable
Se¬
;
Telephone Co.
(7/6)
company
company plans the
$50,000,000 of first mortgage
bonds, maturity of which has not been set. Proceeds—
For construction purposes.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co.; Glore, Forgan
&
Co.
and Eastman
Dillon, Union Securities & Co.
(jointly). Bids—Expected to be received on July 6 up
to 11 a.m. (EDST)
,
value. The new stock, to be issued at no par
value, will be distributed to common stockholders as a
dividend or sold to employees under a company purchase
Indianapolis Power & Light Co. (9/27)
April 18 it was reported that the company will issue and
sell $12,000,000 of 30-year fii'st mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
it
16
stock
mon
Proceeds
was
expected
are
—
announced that
For
general
100,000 shares of com¬
filed in early June.
corporate purposes. Office —
to
be
Palmyra,
Securities Corp.,
New
'
Pa. Underwriter—Plymouth
York City.
■.
★r El Paso Electric Co.
16 the Federal Power Commission authorized the
to issue 185,088 new shares of common stock
and to reclassify 1,989,673 outstanding $5 par shares to
May
no
par
Of the total, 132,644 shares of the new stock will
as a dividend on the basis of one new
share for each 15 shares held.
However, no fractional
shares will be issued. A total of 52,333 of the new shares
will be sold to employees, with proceeds going for con¬
plan.
distributed
be
Florida
Corp.
Power
March 10 it was reported
that $25,000,000 of first
mort¬
bonds will be sold by this utility, possibly in the
fourth quarter of this year. Proceeds — For .new con¬
struction and repayment of bank loans. Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ly); First Boston Corp.; Eastman
Brothers
Motor Credit Co.
.
reported that this company is
March 28 it was
develop¬
(jointly); Eastman Dillon, Union Securities & Co.;
White, Weld & Co., and Shields & Co. (jointly); Blyth
& Co., Inc.; Equitable Securities Corp.
Bids—Expected
to be received up to 11 a.m. New York Time on Sept. 27.
Information Meeting—Scheduled for Sept. 22 at 11:00
a.m.
borrowing operations, which may include
securities, and possibly occur later
Office—Detroit, Mich.
issuance of debt
this
year.
Georgia Power Co.
Dec
of
(11/3)
announced that the company plans regis¬
$12,000,000 of 30-year first mortgage bonds
— To
be determined by
Probable bidders: Halsey, Stuart &
Co.
Inc.; Morgan Stanley & Co.; Equitable Securities
Corp, and
Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co.,-Inc.*, and Kidder, Peabody & Co.
(jointly)- The First Boston Corp. Registration—Sched¬
uled for'Sept. 26.
Bids—Expected to be received on
Nov. 3. Information Meeting—Scheduled for Oct. 31.
with
the
Underwriter
SEC.
competitive bidding.
(7/7)
Dec
9 it was announced that the company plans regis¬
tration with the SEC of $5,000,000 first mortgage 30Gulf
Power
Co.
bonds. Underwriter—To be determined by
petitive bidding. Probable bidders: Halsey, Stuart
Inc * The First Boston Corp.; Equitable Securities
year
com¬
& Co.
Corp.;
Co., and White, Weld & Co. (joint¬
Inc.; Merrill Lynch, Pierce, Fenner &
Kidder, Peabody &
ly); Blyth & Co.,
from
tained
000,000
Cedar
Dows
stated that bonds
in order to supplement money to
be ob¬
temporary bank loans, to acquire the $10,-
required to finance 1960 construction.
Rapids, Iowa.
Office—
Sutherland
K.V.P.
May 11 it
mon
Light & Power Co.
President Sutherland
11
would be sold
Paper Co.
reported that a secondary offering of com¬
is presently being discussed. Proceeds—To
was
stock
stockholders. Underwriter
—
Lehman Brothers,
New York.
Laclede
May 11 it
000 of
new
it was
9
tration
Electric
Iowa
March
ing plans for
the
the
Halsey, Stuart & Co. Inc.; Lehman Broth¬
Goldman, Sachs & Co., and The First Boston Corp.
ers;
selling
,
that
able bidders:
Dillon, Union Securi¬
Harriman Ripley & Cp. (jointly); Lehman
and Blyth & Co. (jointly).
ties & Co. and
reported
was
issuance and sale of about
gage
Ford
by J. Theodore Wolfe,
tration
March
of
struction expenditures.
the pur¬
$4,665,000 of equipment trust certifi¬
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
Bros. & Hutzler.
iN- Y.
a
26 for subscription
amount
common
sion
it
9
the basis of $100
each 25 shares of
stock held with rights to expire on Aug. 12.
principal
Deckert
March 25 the company's annual report stated that capital
expected in
price not less favorable
than a 514% basis. These debentures
to the company's common share own¬
of record July
March
| Prospective Offerings
are
It also proposes to issue and
turing not earlier than 1975 at
to
(par 25
to be offered for pub¬
lic sale by the issuing company and the balance by the
company's board chairman.
Price — $5.50 per share.
Proceeds—$400,000 to restore working capital expended
to acquire American Freight Forwarding Corp. and for
expansion of the freight forwarder operation; $150,000
the
sell convertible debentures in amount of $38,101,600 ma¬
(5/23-27)
System, Inc.
to
amount of
company proposes
bonds in
5%% basis. The mortgage bonds
a
the last quarter of the year.
300,000 shares of class A stock
March 25 filed
The
$35,000,000 maturing not earlier than 1990 for the best
price obtainable but not less favorable to the company
used for
Yale Express
another.
Consumers Power Co.
(7/26)
April 29 the company asked the Michigan Public Service
Commission for permission to issue and sell securities
Underwriter—Michael G. Kletz & Co. (man¬
aging).
★
common
about
of class A'stock to be
to be issued pursuant to
and 21,500 shares being
this time. Price—$3 per
share (par 25 cents). Proceeds—To purchase additional
inventory and equipment and the balance to improve the
company's working capital position.
Office — Moon-
Dec.
April 19 it
:★ Consolidated Edison Co.
May 15 it was indicated by H. C. Forbes, Chairman, at
the annual meeting of
stockholders, that common stock¬
holders may get rights to subscribe to convertible deben¬
150,000 shares
publicly offered, 15,000 shares
a restricted
stock option plan,
registered but not offered at
ed in
debt financing
Securities & Co., and Goldman, Sachs & Co.
(jointly).
Win-Chek Industries, Inc.
man,
Inc.
that further
Stuart & Co., Inc., Merrill Lynch, Pierce, Fenner &
Smith, Inc., and White, Weld & Co. (jointly); Morgan
Stanley & Co.; Lehman Brothers., Eastman Dillon, Union
April 26 filed
N. Y.
System,
announced
was
planned for later in the
sey,
Television System, Inc.
Jan 29 (letter of notification) 86,403 shares of common
stock (par $1).
Price—$3 per -share. Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y. Underwriter—Equity Securities Co., 11
Broadway, New York City. Offering—Expected in June.
To
Gas
year. Underwriter—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
Wiher Color
May 4 filed
-
Columbia
'
Chemical
Underwriter—Kidder, Peabody & Co., New
York City.
is
Gulf Power Co.
was
time in June.
u-
Witco
Salomon Bros. & Hutzler, and Drexel & Co.
(jointly); Eastman Dillon, Union Securities & Co. In¬
July 5, 1960. Bids—
Expected to be received on July 7.
Registration —
formation Meeting—Scheduled for
Scheduled for June 3.
reported that this company is expected
undetermined amount of common stock some¬
an
43
Smith Inc.;
City Gas Co.
J. Underwriter—Jacey Securities Co., New
York, N. Y.
•
Whitmoyer Laboratories, Inc. (6/13-17)
Tan 28 filed 85,000 shares of common stock and $500,000
f6% subordinated debentures, due 1977, with warrants
for the purchase
of 10,000 additional common shares at
Der
share.
Price — For the debentures, 100% of
principal amount; for the 85,000 common shares, $6
JL share. Proceeds—For general corporate purposes,
•including the reduction of indebtedness, sales promoion
and equipment.
Office—Myerstown, Pa. Underwriter—Hallowell, Sulzberger, Jenks, Kirkland & Co.,
Philadelphia, Pa; v v';■ v>'V'■ •>
achie, N. J.
Halsey, Stuart & Co. Inc.; Salo¬
Bros. & Hutzler.
mon
(oar
wood, N.>
★
(2191)
common
a
rights offering of $5,000,-
stock is contemplated, on the basis of one
Brothers
Smith
14
shares held. Underwriters—Leh¬
Merrill
and
Lynch,
Pierce,
Fenner
&
Inc., both of New York, and Reinholdt & Gardner,
Mo.
Louis,
Laclede
May 11 it
the
(7/14)
reported that
share for each
man
St.
Co.
Gas
was
Gas
Co.
(7/11)
reported that the company contemplates
and sale of $10,000,000 of 25 - year first
was
issuance
mortgage bonds.
Underwriter
—
To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.
Stone
Inc.;
&
Webster
Securities
Corp.;
Lehman
Bros., Merrill Lynch, Pierce, Fenner & Smith .Inc. and
& Gardner (jointly); Eastman Dillon, Union
Securities & Co. Bids—Expected to be received up to
11:00 a.m. (EDST) on July 11.
Reinholdt
Lee
Filter
May 9 it
of 10,000
was
Corp.
reported that this company plans the filing
shares of its common stock. Price—To be supContinued on page 44
The Commercial and Financial Chronicle
44
Continued from page
43
■
^
,
.
,
,
Proceeds—For expansion of busi¬
plied by amendment.
Office—Edison, N. J. Registration—Imminent.
derwriter—Myron A. Lomasney & Co., New York.
ness.
Louisville Gas &
April
27
Un¬
.
maturity of $35,000,000 of consolidated mortgage bonds.
This issue will be secured by the stock of the Norfolk
1
(10/18)
Electric Co.
if Pennsylvania Co.
May 16 it was announced that this wholly-owned sub¬
sidiary of the Pennsylvania RR. will market shortly an
issue of 25-year collateral, trust bonds to meet the Aug.
Ry. and will have a substantial
& Western
it was reported that this company plans the
and sale of $16,000,000 of first mortgage bonds.
sinking fund.
Proceeds—For
Electric Power Co.
March 21 it was stated in the company's annual
termined
is
issuance
Potomac
.construction.
Underwriter—To be de¬
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man
Brothers and Blyth & Co., Inc. (jointly), Kuhn,
Loeb
&
Co., American Securities Corp. and
Wood,
Struthers & Co. (jointly); Eastman Dillon, Union Se¬
curities & Co. and White,,Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.
7 /,
77
Enterprises
that
1961
Corp.; Dillon, Read & Co. and Johnston,
(jointly) r Kidder,-Peabody & Co. and
ton
&
Lemon
Merrill
Pierce, Fenner & Smith (jointly); Lehman
Co.
Lynch,
Dillon & Union Securities & Co.
Corp. (jointly).
Brothers and'Eastman
Inc.
& Webster Securities
Stone
and
in the company's annual report
it contemplates the issuance on or before March 31,
of a bond issue in an aggregate amount not to exceed
8 it was stated
•
Missouri
Pacific
RR.
Electric & Gas Co.
Public Service
took preliminary steps
for the sale in September of $50,000,000 in first and re¬
funding mortgage bonds with a maturity of not more
than 30 years. Proceeds—To pay all or part of company's
incurred for construction.
Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co., and Lehman Brothers
short-term indebtedness
(5/25)
—
April 27 it was reported that the Road plans to sell
$3,975,000 of its equipment trust certificates on May 25.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler. Bids—To be received in St. Louis, Mo.,
up
(jointly).
March
Co.
Insurance
March 16 it
expects to
announced that the company
was
it
12
common
bidders:
&
66%
of
issue
the
will
be
for
Halsey,
Stuart
&
Co.
the
right
Peabody
Kidder,
Inc.;
Co., White Weld & Co. and Shields & Co.
(jointly);
sold
8
it
was
be
reported that $25,000,000 of bonds is
sold sometime in the third quarter of
this year. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
York.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fen¬
ner^
Smithy jointly); Lehman Brothers and Salomon
Bros. & Hutzler (jointly).
;
y
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
w/7, (Jos.) Schlitz & C
& Co., Lehman Brothers and Salomon Bros. & Hutzler,;
March 11 it was reported that a secondary offering might
(jointly); Equitable Securities Corp.; First Boston Corp.;
be made this summer. Underwriters — Merrill Lynch,
Merrill Lynch, Pierce, Fenner & Smith Inc.; Eastman
Pierce, Fenner & Smith Inc. and Harriman Ripley & Co.
Diljon, Union Securities & Co. and White, Weld & Co.
Inc., both of New York City.
jointly).
Bids—Expected to be received on July 19 up
to 11:00 a.m. (EDST).
Sierra Pacific Power Co. (7/6)
April 18 it was reported that this public utility will
Northern Illinois Gas Co.
(7/13)
issue and sell $3,000,000 of bonds, due 1990. Underwriter
Feb. 16 the company's annual report stated that $120,—to be determined by competitive
bidding. Probable
000,000 of new capital will be needed to meet its fivebidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody |&
year construction program.
April 5 it was announced
Co. and White, Weld & Co. (jointly); Stone & Webster
that the company will sell $25,000,000 of first mortgage
Securities Corp. and Dean Witter & Co. (jointly). Bids
bonds. Proceeds—To finance a portion of the 1960-1964
—Expected to be received on July 6.
construction program. Underwriter—To be determined
South Carolina Electric & Gas Co.
by competitive bidding. Probable bidders: A Halsey
Stuart & Co. Inc. group.
March 25, S. C. McMeekin, President, informed this
Bids — To be received on
June 13, up to 11:00 a.m. EDT.
paper of plans to sell an undetermined principal amount
of bonds, the timing of which will be subject to market
Northern States Power Co. (Minn.)
(12/6)
conditions. Proceeds—To repay bank loans incurred for
May 11 it was
Probable bidders:
reported that the company plans the is¬
current construction program.
and sale of
Underwriter—To
$35,000,000 of 30-year first mortgage
be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc., Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc. (jointly); Leh¬
man Brothers and Riter & Co.
(jointly); Equitable Se¬
curities Corp. and Eastman Billion, Union Securities &
Co. (jointly). Bids—Expected to be received
by Dec. 6.
—
For
expansion
of
business
and
Office—Norwalk, Conn.
writer—Myron A. Lomasney & Co., New York.
March
that
««°innnenXnnndlXli^s' ^ic*}
$61,000,000.
are exPected to total about
Office—Portland, Ore.
Panhandle Eastern Pipe Line Co.
about
$65,000,000 of debentures, possibly in
quarter
of
this
year.
Underwriters
—
might, sell
the third
MerrilT Lynch,
ofeN^v ^oSfr ^ Smith Inc. and Peabody & Co., both
sale
offering, expected
public
to be about $50;000,000, for
May
in tiro Fall.
13 it
was
announced
that
$50,000,000 of additional revenue bonds will be
offered in the Spring of 1961. The type of bond issued
about
will depend on
construction of
market conditions. Proceeds—To finance
new generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial Advisor: Leh¬
man Brothers. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., First National City Bank of New York, Equitable
Securities Corp. and Smith, Barney & Co. (jointly); First
Boston Corp., Lazard Freres & Co., Eastman Dillon,
Co.
Securities &
Union
Salomon
and
Bros.
&
Hutzler
(jointly); Chase Manhattan Bank and Morgan Guaranty
Trust Co. of N. Y. (jointly); and Blyth & Co. and J. C.
Bradford & Co. (jointly).
<7
7
Trans World
was
|
with
least
at
$190,000,000
$100,000,000 of subordinated income
$100,000,000., Proceeds — Together with
proposed
private
placement
which
is
presently being worked on by this company's bankers,
will be used for expansion of the company's jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman Brothers, all of New York.
Union Electric Co.
March
tive
of
16 it was announced
by Dudley Sanford, Execu¬
Vice-President, that the
securities
debt
in
the
company
plans
offering
an
$30,000,000 to $35,-
of
range
000,000. Proceeds—To meet construction expenses. Office
—315 No. 12th
in the
latter
Blvd., St. Louis, Mo. Offering—Expected
part of this year.
Union Trust Co.
of Maryland
/
April 21 directors of this bank announced plans to boost
its
capital stock by 100,000 shares to 500,000 shares, $10
by offering for subscription to present holders one
new
share for each four held.
A special meeting of
stockholders was called for May 25 to consider the plan.
Price—To be set shortly before the offering. Proceeds
—To increase capital and surplus.
Underwriter—Alex
Brown & Sons, Baltimore, Md.
Offering—Expected in
late May.
" 7^:
par,
^
•
Utah Power & Light Co.
it
12
was
reported
that
this
company
will ask
autho¬
rize 2,000,000 shares of $25 par preferred stock, part of
which will be sold competitively. The company's quar¬
terly report of April 15 stated that financing in the form
of bonds and another as yet undetermined type of secu¬
rity is planned for September of this year. Proceeds—For
construction purposes and repayment of bank loans. Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.
and First Boston Corp. (jointly); White, Weld & Co.;
Stone & Webster Securities Corp.
(jointly); Salomon
Bros. & Hutzler; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Bros.; Bear, Stearns & Co.
;
Virginia Electric & Power Co.
(9/13)
reported' that approximately $25,000,000
first mortgage bonds will be offered for sale. Under¬
Feb.
5
it
was
To
be
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler;
White, Weld & Co.; Eastman Dillon,
Union Securities & Co.; Stone & Webster Securities
Corp. Bids—Expected to be received on Sept. 13.
—
Probable
bidders:
Waldbaum, Inc.
May
Southern Union Gas Co.
Feb. 5 it was reported that
$11,000,000 in new financing
is planned for the late
Spring of this year, of an undeter¬
mined type. Underwriters
A. C. Allyn & Co., and
Snow, Sweeney & Co., both of New York City.
—
Southwestern Bell Telephone Co.
(8/9)
March 28 directors of this
company recommended
a
$100,000,000 debenture issue, subject to approval by
regulatory authorities. Proceeds—To finance an expan¬
sion and improvement program over the next five
years.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Stanley & Co. Bids—Expected to
about Aug.,9.
'
:•i>..
•
stockholders
its
writers
stated in the company's annual report that
provide for the payment of
—Birmingham, Ala.
1
Airlines, Inc.
rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to provide TWA
of
Inc.;
*JLiirtwas reP°r*ed that this- company
bonds outstanding at any one
sometime
reported that the
and
through the issuance of first
mortgage bonds and other debt securities.
The timing
of the issue or issues was not stated
in the report. Office
con¬
construc-
to August, 1959, au¬
have $750,000,000 of rev¬
time, it plans its first
announced that, pursuant
20
enue
in
company expects to
certain outstanding notes
aUeast $20,000,000 of securities, the
1960-61
underwriters
was
the
Light Co.
finance part of the issuer's
in the company's annual report
Southern Natural Gas Co.
Jan. 29.it was announced that the
company plans to issue
to
stated
the $30,000,000
issuance
April 4 it
remaining balance, from the proceeds of additional
issued
was
to
company contemplates
approximately $20,000,000 to
$25,000,000 of first mortgage bonds, probably during this
summer. Underwriter—To be determined
by competitive
bidding. Probable bidders:,Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.yThe First Boston Corp.; White, Weld
& Co.; Merrjll Lynch, Pierce, Fenner & Smith Inc.
>
the
short-term borrowings.
•
it
sold
May 16 it
gen¬
date and form of
which will be announced at a later date. Proceeds—To
retire $20,000,000
of unsecured promissory notes, to
mature on or prior to
July 31, 1961. .The notes will be
Authority
Tennessee Valley
thorization from Congress to
if Southern Counties Gas Co.
ditions, of $10,000,000 of its first mortgage bonds, from
depreciation and retained earnings and, to the extent of
;
.
•
stockholders at the annual meeting on May 16, to
Edison Co.
issue of series L mortgage
January, 1960, an addi¬
$55,000,000 to $60,000,000 will be needed to com¬
plete its estimated $123,000,000 construction program for
1960.
This financing is dependent upon market condi¬
tions, and will probably be some type of debt security.
1962 and the refunding of
$6,442,000 series B bonds ma¬
turing in 1961 as is not financed by the sale of the com¬
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5% (par
$100) will be financed
Pacific Power &
public financing, is expected
shortly. Office—7 East 42nd St., New York City. Under¬
writer—Equity Securities Co.y 39 Broadway, New York
City/6, N. Y.
.'7' ///■;. 7'_w
tional
Orange & Rockland Utilities, Inc.
April 18 it was stated that the company presently ex¬
pects that such part of its construction program through
any
15
besides
bonds
Under¬
from the proceeds of sale in
1961, subject to market
to
'V
ing the company's initial
April
Southern California
Norwalk Co.
Proceeds
Bids—Expected
..
if Telephone & Electronics Corp.
/
It was reported May 18 that a "Reg. A" filing of 52,980
shares of this firm's 25 cent par common stock, conititut-
Previous issues have been
placed privately.
March 30 it was reported that the
company plans to file
an
undetermined amount of common stock sometime
eral corporate purposes.
Inc.; Goldman, Sachs & Co.
& Smith
be received on June 28.
debentures with detachable common stock purchase war¬
Diego Gas & Electric Co.
expected to
Jersey Power & Light Company (7/19)
Feb. 17 it was reported that this utility is planning the
sale of $5,000,000 of first mortgage bonds, due in 1990.
Underwriter—To be determined by competitive bidding.
bonds.
if Tampa Electric Co. (6/28),
May 16 it was reported that the company plans the issu¬
ance
and sale of $25,000,000 of first mortgage bonds
Underwriter—To be determined by competitive bidding/
Probable bidders: Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp.; Merrill Lynch, Pierce, Fenner
to
April
selling stockholder.
New
suance
Sometime in June, Underwriter—
Rauscher, Pierce & Co., Inc.- Dallas, Texas.
April 8 it was announced that the company plans to offer
San
remaining 34% bal¬
a
Underwriter—Van Alstvne, Noel & Co., New
soon.
Thursday, May 19, 1960
Corp.
the company is contem¬
registration of 17,000 shares of
About
for the company's account and the
ance will be sold for the account of
•
,
Hutzler, Eastman
Dillon, Union Securities & Co., and Equitable Securities
Corp. (jointly); Blyth & Co., Inc.; The First Boston
reported that
was
Commission
Service
Kuhn, Loeb & Co.; Salomon Bros. &
Stores, Inc.
stock.
application with the New
an
$10,000,000 of new preferred stock. Underwriter
be determined by competitive bidding. Probable
—To
Co., Inc., 38 Broadway, New York
plating the placing in
Public
filed
to issue
City.
Nedick's
Corp.
stated in the company's annual report
was
State
York
its first public offering in early May.^ The
offering will consist of 75,000 common shares. Price —
To be supplied by amendment.
Proceeds—For expan¬
sion.
Office—198* Broadway, New York City. Under¬
writer—R. F. Dowd &
it
1
Electric
&
that the company has
register
///■
7,'/, 7-; /.://
Gas
Rochester
to 1:00 p.m. EDT.
Mohawk
Nov.
.
Registration
Texas.
Jan.
May 18 directors of this company
$4,000,000. Proceeds — To finance river transportation
equipment presently on order and expected to be
ordered. Office—Cincinnati, Ohio.
•
report it
anticipated that their 1960 construction program will
amount to $39 million and there will be further financing
of about $15 million of an as yet undetermined type.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co., Inc.; First Bos¬
by
Midland
April
.
(2192)
be
r,
received
Morgan
on
or
•
Steck Co.
May 4 it was reported that the
of
60,000 shares of common
company plans
stock.
Office
the filing
—
Austin,
11
it
reported that public financing is being
by this supermarket chain. No confirma¬
was
contemplated
tion was obtainable. Office—2300
Linden Blvd.,
Brook¬
lyn, New York.
^ Winter Park Telephone Co.
uMay 10 it was announced that this company, during the
of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
■
■
first quarter
will be offered
and
may
or
on
may
securities brokers.
a
stockholders
more
England Ave.,
rights basis to existing
not be underwritten by one or
Office—132 East New
Winter Park, Fla,
Yardney Electric Corp.
May 9 it was reported that sometime in July this com¬
pany expects* to file ah as yet 'undetermined amount or
common
stock. Office—40 Leonard
Underwriter—To be named.
St., New'York
City.
Number 5952
191
Volume
.
.
The Commercial
.
and Financial Chronicle
(2193)
/"MH T^"D A
rrt-p
.
QfP A
(Jj
pj
V*"
"HT?
A \TT^ T\TnTTQTPV 1959 .and 6,204 cars
1/ U U1 Xv I above
the,1958.week.
JtvxxJL/Xli x\.xN JL/ JLiN
X
r
Car'Prodiiction
,
loadings for the
in Latest Week to
126.0%
or.
Cumulative
first 17 weeks of
rontinued from page 5
rr^uction in Latest Week to 196Q totaled 177072 for an. in.
mint on inventory accumulaSet Three Month High
crease
of
51757 cars or 413%
rcST„ct month, shipments were
Sharp increases in production
the
tW
^nua7 to consumption. This by General Motors and Ford above and corresponding period of
1959,
abqut
99,196 cars or 127.4%
fnrnpd
Motor Co.- will establish nassen-
wi"
Rnt
eluding
im£
a'30lJ.
be
jnagazine
will
pnnsumDiion
"avgiyc
u^ttauuiiv),
The
agency
said
of
;
half
150,338 units would be 6% greater
,
million.
01
1+
t
first
esti
..
.
.than the
/
.
shipments °£'£3 an vear's
48.2 milhon m last y
threatened fiKt nauL
tut
otauoteai
estimated
output
153,501
cars
turned
were
since
out
the
week ended Feb. 27.
^
'
Than
in
1959
Week
Lumber shipments of 461 mills
reporting to the National Lumber
Trade Barometer were 1.5% be-
t
.
week s revised "Valiant assembly line because of
ingot tons. a shortage of engines.
Export
shipments last week
."Ward's" indicated the engine
buoved scrap prices, notably in shortgage
would
not interfere
ibe East
but
did
not
affect with Chrysler's
increased
pro...steel's" scrap
prte composite duction schedules; for May'and
viocpd
on
prices
at
Pittsburgh, June, since its Trenton, Mich.,
previous
the
inw
Output: 2,102,000
_
and
Chicago,
composite
rpup
,mnia
Pennsyl- engine
eastern
on
X
record
a
T w Sr Plants
get1aer 'with a few ot e^ p
^
^ut die
watchers, 1956 was
leading busi-
"eved
was
clear
a
a
weakening in
it
was
tells
but this time
the
challenged
of bullish sentiment. For
a
L
because
example:
predict
Prices have
as
but
sales
record
firmed
above
problems; earnings
fast
as
There
are
sales
as
:mmpriiatp
on
motor vehicles
possible
embarrass-
^
publication
Kerootlng
much
its
of
edition, the 260-page
book for the auto industry
"the
that
the
of
dawn
American
the
rect
pean
with
Year-
Automotive
("Ward's
associate publication of
"Ward's Automotive Reports,
the
book» is
volume.
was
™aa
and steers
price
an
most
.
the
corre-
in 1959> production
3 2%
was
he-
and
orders
new
16.5%
were
be-
Y
:
Electric Output 5.3% Above
h
1959 Week
*•
Ma,
May
average
y,c
127.1%
-® ,We.e
16,
(based
tion
:
to
equivalent
Jons of ingot
on
of
and
steel
These
^veek
and
f
Actual
Sinning
outDut
May
73.8%
1,
1960
148,570,970
Percentage
cast
based
°n
71.7%.
1960
net
on
nounced.
9
was
36'457
equtl
utilization of
annual
for
,
for fast week be-
9
the'
Of
Mav
tons.
this
'
'
of
capac y
tion)
on
was
164.6%..
aSe
Index of production or based
ie
weekly production
for
on
aver-
1947-49.
1960J
a
„„Hinffs
an-
of
decrease
,,
5'i%in
,
trading
rye
Although
.
children's
There
hoth
me
was
merchandise,
was
moderate rise from
a
the
prior week and a year
ag0
in purchases of air conditioners, television sets, and laundry equipment. While the call for
prospects
new crop,
steady and prices
dinnerware,
glassware,
and
fractionally higher.
household utensils showed
slight
Offerings of corn were light year-to-year
gains,
volume
in
and purchases were sustained at furniture and
draperies
down
was
high levels during the week;
corn
somewhat.
prices
were
Oats
floor coverings
were
sustained
prices
were
somewhat, remoderate slackening in
high levels and
were
up
fleeting
a
down
transactions.
and
fractionally.
up
suited
ally from
supplies
volume re-
in
slight decrease
in a
Sales
a
of
year
in
M
,.
04
Natl°^^D^
soy-
x%
trading
#
Department store sales on a
country-wide basis as taken from
the Federal Reserve -Board's index for the week ended May 7.
1660, decrease 1% below the like
in
restricted to small
re-
buying, export purchases Picked UP appreciably, es-
pecially by Indonesia and B°livia;
were
underway^ for Period last year. Inthepreceding
go to Viet- weex, 10r APrn
shipments to
nam.
from
a
an
Flour prices
of 7%
unchanged
were
week earlier.
Rice supplies
ur
t
anticipated
were
unfavorable
areas;
as
weather
grow-
this helped hold prices
prior week. Trading
^
sus-
prices
slight
i
comparable 1959 week.
Business Failures
Off
3
Ovctpm
&
^7
rfil
vnrk
ill '
week ended May ? increased
over
the
30
volume
SuPPlies °f lambs -we:rejhmrted
holdlnS voium® close to ^he .?^°r
Latest Week
uiL0Xned
"cs
to 304 from 327 in the
&r® dstrelt
Inc
^pped to 304 from 327 m tn|
Casualties
were
the like period last
year.
jn
the
comparable week
last year and were off from 327
1958
Some
fewer
than
toll
in
concerns
1939
prewar
321.
was
steers
Prices
saleg
increased
18%
^
(p ggy
back)
in
prices
33
almost
earher.
the
with
even
last
failing
year.
of
36
this
Thirty-five of the
jn
businesses
of
excess
had
i
May
3.4%
index
the
10
a
stood at
with $5.97
$5.93,
the $6.14
below
compar
responding period
P
a
Despite
steers.
toes
corn,
Down
in
Y®dk
8
we^®uP While
ago.
linens
year,
women's
apparel
little
change.
Purchases
passenger
tQ
cars
levels,
ovgr
up
was
and
.
y£ar
raw
food
stuffs
and
a
meat
of
new
sales
ag0j
in
cost-of-
ai
uie
wholesale
level.
Mass.
—
Percy G.
nQ^ conducting
Fresh
formerly
p<)nd
a
Lane
partner
Crocker & Co
his in_
in
He
at
wag
Percy
G.
of Boston.
-
-
fj
•
p0jK Ooens
\°lK VenS
,
.^peciaitoiJhe5financialchrgntcle)
&
Co., Inc.,
lard
of
re-
is
—
^
Davis,
conducting
a
H.
Davis, president;
Donald
A. Davis, vice president; and Wil-
tail trade in the week
from
1%
below
May 11 was bur D. Polk, secretary-treasurer.
to 3% hig e:r
i
•
A/j rinnnell Slaff
Dun
Regional
k4lddl®
following per
fi
p!,®"Bc
(special to the financial chronicle)
-
mates varied from the comparable
1959 levels by the
centages:
J°mS McUonneU bta"
&
est
SAN FRANCISCO, Calif. - Peter
E
white' has" become
affiliated
.
Coast
McDonnell
Porated,
&
Co.,
Incor-
Russ Building. He
~ zstsTJi
increase 0f 2,817 cars or 33 9%
fh
above ine correspOnding Week Of prices
CUXICdp
as
Tecrftary
remained securities business from offices at
according 926 j Building. officers are Wil-
tal dollar volume
t
CAMBRIDGE
SACRAMENTO, Calif.
scattered reports.
Th
served
as
'
Crocker .g
sustained at Polk
by
,,
It is not
showed
than a/ear a,g,°'
,a?KgnlPt
estimates
collected
.
total of the price per pound of
general use.
.slightly irom
were
and
..
interest in both men's
The index rePresents the f mf Bradstreet, Inc.
31
housewares,
and
eggs, pota-
rye, cocoa,
York
and has
Toronto Stock Ex
on'the
1 Crocker in Cambridge
15
year
a
and
price
a^director of Grace
vestment business from offices
fell somewhat from a week earlier, however, sales
last
and h0gs
Q|
..
sp0nse to Mother's Day saies promotions, over-all retail trade in
the week ®nded tkls
tionally from
BL
several years,
Ag0
volume in appliances,
J
^ Toronto Exchange> and has
been Chairman of the market's
Listing committee for the past
good last-minute re-
a
the
in
change board since 1948
Up Fractionally
ycar
^
in
high
Commodities quoted higher in nign
and
d
Keta"
T(wonto
New
^ q£
A
,
was
year ago.
Broadway
served
comparable period last vear
year.....
ear-
of the
ey, Dartner in the
pa tner
"the
rm or Hurgess & Go
a
_
previously
cor-
week
It
a
decline of 0.7%.
election
Lailev
£orn ^^0^9 OO^bates Vice-Chalrmln
amounted to about 5,719,uuu D
against
as
index, compiled by Dun & Bradstreeti
InC
and
it was down
moderately from a year ago. On
Compared
®
a
,,
liabilities
$100,000,
OCOlC
L°?3NTO, Canada-The
for the week ended last Crang & Co
.
size
T\
U.
unchanged
Mrv .Scott is a. partner
Expoi-tori Toronl
brolkwagefim
finished
week
a
Tuesday- came to abou.'
R
bales, compared ,wdhnn^06.'0
agQ^
Qn the other hand, small week earlier andI 57,000
casuaities, those with liabilities similar period a year ago. Exp
$5,000, edged up to 35 from
in the previous week and were
■
Tjl
HiieClS El.
^ronto Stoc
the New York Cotton
on
and
range
liabilities cotton
un(ter
Tnrfirif ft HlXCH.
1 OrOntO Fvpll
ni '
Exchange moved within a narrow
from
involving
steady,
were
dlPPed somewhat
under $5,000 fell to 269 from 294
week earlier and
275' a year
were
thePr,oa ^rs Snorted
T^iPnrmore revenue
with o:ne
In
preceding week ended April
week; lamb p
fracyo";
E"c D- Scott as Chairman of
allF hlSher' Although purchases the board of governors of the
of
curring
toes
wpek
as
higher.
was..moderately
rommercial and industrial fail-
fars
,.
8%
1959.
Hogjecelpts in Chicago ^owed a
slight rise from a week ear her
.
but
two-tenths of
a
inpXXpy P °d snowed a
According to the Federal Re-
in
Slightly in
.
1959
o/0
a
period showed
result
a
in
Fdr•the
may
^f^whUe Ihe
™riod
the
to
enaea
limited/in
were
i,n,crea^e
^parted
was
weeKS
markets and further reduc
some
tions
«
?or
Week
domestic
placement
sizable
at
ago.
#
Although
was
and
fraction-
.,
bean prices.
flour
linens
Increased
slight dip
a
tub-dof 666,000,000 A'slight increase occurred
showed a,gain eF^J
kwh- or 5p3 % ab°ve kthat
hog prices from the prior week,
in'the week of May 7,
l°aded
highway trailers
ai
over the
dip in cocoa prices during the
nke period last
year. For the four
to
the Edison Electric week, reflecting a moderate deweeks ending
May 7 a 13% in_
Institute. Output was 211,000,000 crease in volume. While volume
crease was reported over
the 1959
kwh. above that of the previous in sugar was steady, prices were
period, and from Jan. 1 to May 7
week's total of 13,139,000,000 kwh. down somewhat.
showed a 3% increase over
oil,
or
apyarei
cording
Associa- lier for
1958.
k°adl"g„s
operating rate
1947-49 weekly produc*139.3% and production
SS—kF
_^.644,000 tons,
or
7
Railroads
was
were 1,568 cars o
1% below
is
-A month
ago the
(based
car,s
in
fore-
canacitv
the
This was a
Estimated
week's
that
Tu:„
freight for
May
cars
men s,
_
improved for the
distributed by the electric
and pQWer industry for the week tamed at a high level and
ended Saturday' Ma^ H^as es- were steady^There• was a
corresponding week in 1959^ but wholesale cost thls week were
fq oJ"Cr®hove the corresponding flour, hams, lard, milk, cottonseed
the
capacity
revenue
fi4l
2,102,000 tons in the
beginning
Week
+.Lo^IPg ided
Jh+e0i^
703
Imerican
^10n a
figures
,,
j^^ce^oyed up s^®what.
lightr, Transactions in coffee were
week in the wholesale food price
-
1959
Fn
The amount of electric,(energy
.
compare with the actual levels of
"130.9%
-
Carloadings Down 5.4% Below
2,042,000
castings
average weekly produc-
1947-49).
•
„„Ulv¥1/k
were
ing
West Latayewe n
of steel ca-.
,
week.
Pnor
were
close
T
1
renidiueu
winter wheat production discouraS?d some buying, and wheat
P^ces dipped somewhat from the
of
neeUMteei ,°UtPU,t Based Ru,p0itS'" Thnw4bem fora$7a50 28
th£ precedmg W6ek'
The A
°
d
„t
,
pe|.e copy^from the publisher, Slight Declme in Wholesale Food
In^,i0Am®rlCan II°3, a"l ®, Ward^ Automotive Yearbook, 550
Pnce Index
prating rate ofi the steel
annouaced that the-op-- w , Lafayette Blvd., Detroit 26,
ing
A slight decline occurred this
companies
-
similar
year
earlier, and 276.52 .on the
*ag0 level. Retailers reported little
corresponding date a year ago.
change from last year in sales of
Reports of higher prospects of
.
ThiS
e a
'
*
•
..
and fashion accessories, interest in
Spring suits and sportswear was
the general
levei
'
while cold weather discouraged
buying of Summer apparel
the
Qat
lard'Spd^ price^ Lv'el remained
commodity
'be- negotiations
2.5%
were
mills:
Failures
relief) imperative.
not climb-
pro-
^Xpme'nfa^f.5 %Mow;
competition with their Euro- when the
counterparts ^make this (tax
spots: Order statistical and analyical weekly
capital goods o{ the auto industry.)
slightly above year-ago
"ward's 1960 Automotive Yearlevels. Farm implement makers
bQok„ currently is being distribhad a
relatively slow first quart d as part o£ the regular weekly
kr.
;
•
service of "Ward's"
Automotive
in
rpnortincr
succumbed
year-ago
weak
are
volumes
lines are
wPeek
ndi
Compacts }
and the consequent arrival of dio£
Era
®„ar
,,rd
—J-
rye,
o£f_
Un
whea
+2; East South Central —4
West North Central —6 to
0;
^
govTrnTent
our
deciares
believe they should,
are
,
"Ward's
Automotive Yearbook," just
source
year.
as
Tax
22S^annua?
levels. In most lines, price competition is fierce. The majority of
companies
face
serious
profit
mg
new'orders
Comnared
and the industry severe eco-
^
optimistic,
are
a
not
managers
•
i960
mills
,
nomic loss is sounded by
area.
Businessmen
SDare
"™t
pulse, "Steel's" editors found
some
n
international
check of the nation's busi-
Chicago-Midwest
Available
,
^al°Excise
bullish attitude last week in the.
a
11n0w
and
•
n
to
timated at 13,350,000,000 kwh., ac-
\
;
An urgent call for
story,
same
^
-
validity of the warn-
ing is being
ness
Ward S
but
economy
production
ward's 1960 Automotive Yearbook
of
false storm warning The
indication
from
the same
barometers
In
be-
many
indication
the
a
latest
.
what
gave
dav
flve"day Product
schedules*
indicators went wrong. Those
indicators
five
nn
mair\e<L
the year when eight
ness
nr(mimK
£kmpad®d /nril 30
of
reporting'
don°l.porting
f
^kard's ass^^oper^tionsC°to-
year
for metalworking.
To the chart
wiHl
can
sluggishly but
be
to
out
production; new or7 2% below production
were
rnm_arw1'
a
confined to Amen-
was
below
ders
acTrboncopy
be
1956 which started
turned
on
Motors Corp seven Chevrolet
growing that 1960 plants,
and Fords Falcon and
of C omet facilities.
Studebaker-
is
o
building
"Steel" ; reported,
strengthening
fppling
working
Elsewhere in the industry,
Wards
said,
Satu
y■
scrap;
stayed at $33.33 a gross ton.
The business outlook for 1960 is
tX
is
5.3%
three-shift basis.
prime
Sy meltingXlmaklng
plant
on corn,
rubber
week
.
IX
higher prices
lamb
s
,.
.'
Lumber Shipments 5.5% Lower"
will stop
q
S
Combined car and truck pro- low
production during the week
inventories by July ana no
duction of an estimated
178,781 ended May
7, 1960. In the same
at about 17 million tons uni
units also would be
a,1 12-week
week new orders of these mills
when there may ..be a -mqae^aie high, the bast total since
185,1984 were 6.4% below
production. Unbuildup.
;
—
+1__
vehicles were built during the filled orders to
reporting mills
Steelmakers are scraping tne week 0f Feb 27, "Ward's" said.
amounted to 33% of gross stocks,
bottom of the backlog barrel, tne |
"Ward's"
noted
that
compact For reporting softwood
mills, unmagazine said. As backlogs di- car output for the latest week
filled orders were
equivalent to
minish and consumers continue to was expected to total about
38,000 18 days' production at the current
live off their inventories instead units> compared with 42,000 last
rate, and gross stocks were equivnf Dlacing new orders, steelmakers
week.
The drop in compact pro- alent
to 52 days' production.
steadily reducing their output duction, < according to "Ward's"
For the
year-to-date, shipments
Last week, operations
w^re t was the result of a week-long 0f rep0rting identical mills were
73.8% of capacity; 1.2 points be- shutdown
at
Chrysler
Corp. s
Consumers
With
—2 to
j.yoo.
preceding week (142,091)
and the hiShest production
strike
uj.
Wholesale Commodity Price Index
Close to Prior Week
45
was
Atlantic
and
West
South
Central
Incorporated.
The
Chronicle
Commercial and Financial
.
.
Indications of Current
The following
month available.
Business Activity
week
INSTITUTE:
capacity)
IRON AND STEEL
Equivalent to—
ingots and castings
May 21
Month
that date*
on
§2,042,000
♦2,102,000
BRADSTREET,
of March:
2,644,000
2,238,000
May 6
gallons each).:
42
May t>
stills—daily average (bbls.)
Gasoline output
(bbls.)
—
Kerosene output (bbls.)—
—
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
Stocks at refineries, bulk terminals, in transit, in pipe
Finished and unfinished gasoline (bbls.) at
Kerosene (bbls.) at
~
Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at
to
runs
OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections (no.
°
May b
May o
May 6
—
lines—
May 6
May 6
May 6
:—May 6
—
7,028,410
117,788,000
7,945,000
8,035,000
7,722,000
28,680,000
2,010,000
2,248,000
'2,755,000
11,636,000
12,012,000
12,638,000
1,759,000
11,995,000
5,607,000
6,622,000
6,913,000
219,524,000
224,995,000
20,024,000
18,221,000
81,375.000
39,320,000
74,419,000
87,655,000
39,373,000
CONSTRUCTION
ENGINEERING
CIVIL
DFUADn*
*?■**?£*
NEWS-RECORD:
Total U. S.
55,553,000
38,705,000
.
i
;
235 100,000
171,400,000
295,300,000
226,40(1,000
209,700,000
196,200,000
168,200,000
39,200,000
85,600,000
30,200,000
57,000,000
8,275,000
8,300.000
8,310,000
8,457,000
278,000
306,000
260,000
318,000
156
•151
153
158
May 7
100
May 14
COMPOSITE PRICES:
(per lb.)—:
steel
(per gross ton)
Electrolytic
Domestic
Lead
Lead
(St.
(delivered) at
Zinc (East St. Louis) at.
Aluminum (primary pig. 99.5%)
Straits
12,684,000
-
PRICES
BOND
MOODY'S
$33.50
$33.83
'
12.000c
12.000c
Cereal
11.800c
1
28.325c
12.000c
12.000c
31.175c
31.125c
11.800c
11.800c
Meats,
13.500c
11.500c
Dairy
Fruits
/•C
May 11
26.000c
26.000c
26.000c
99.375c
99.375c
Food
24.700c
102.625c
.
99.250c
May 11
•
May 17
..
;
83.69
85.69
84.50
V
83.42
84:94
85.46
87.32
89.51
90.48
electricity.
Household
Apparel
78.90
78.50
80.08
82.77
82.65
82.77
86.38
Men's
Women's
89.37
3.97
4.19
4.79
4.75
4.79
:
-
\;f
4.61
May 17
May 17
4.45
4.45
4.45
4.61
4.60
4.57
4.46
4.83
4.82
4.79
4.62
V-
5
•
.
/
.May 17
Baa
.May 17
5.28
5.28
5.18
May 17
4.97
4.96
Group
Mav 17
.
4.69
4.76
4.76
4.67
May 17
4.64
4.65
4.59
-May 17
378.9
380.7
MOODY'S COMMODITY INDEX-
MOODY'S
May
REPORTER PRICE INDEX—
AVERAGE==100—
1
332,434
Utilities
312,547
307,102
316,815
313,894
Banks
93
92
94
94
May
at end of period-
299,289
May-
activity-
321,258
May
(tons)
(tons)
345,576
475,187
428,599
450,380
525,874
110.95
110.38
110.71
110.61
OIL, PAINT AND DRUG
Average
'
Total
purchases
405,650
2,246,500
1,602,360
260,510
2,607,380
396,200
446,100
V
Short
sales
Apr. 22
Other
sales
Apr. 22
1,955,400
1,240,530
1,706,740
2,201,390
Apr. 22
2,361,050
1,501,040
2,102,940
2,647,490
370,460
245,230
331,940
Banks
376,270
sales
Total
Other
S.
U.
127.3
3-47
3.11
5.50
4.42
3.97
(214)
4.01
3.87
3.56
—
of
HOME
Feb.
trust
LOAN
,
3.59
3.29
BANK
$858,725
—___
$777,492
102,583
*■,
114,847
115,908
342,585
103,527
;___
$1,058,665
107,132
342,036
companies-
lending
2.57
•
omitted):
(000's
savings banks—
Individuals —-—i——.
3.98
3.85
2.87
•
492,548
.
112,091
324,946
_
310,054
317,707
416,987
427,312
488,920
$2,148,804
institutions
$2,079,422
$2,585,839
8,903,922
9,258,079
9,964,340
20,204,319
transactions initiated off the floor-
purchases
Apr. 22
sales
Apr. 22
44,700
14,300
44,600
80,100
sales
Apr. 22
370,130
230,970
270,130
355,270
Apr. 22
414,830
245,270
314,730
435,370
Apr. 22
716,082!
510,300
685,215
694,710
Shipments.
Apr. 22
104,820
66,860
126,450
133,250
Production
Apr. 22
722,275
521,422
593,934
875,100
Inventory
Apr. 22
827,095
588,282
720,384
1,008,350
Total
sales
Total
INC.—Month
purchases
Short sales
Total
sales
sales
Truck
I
Total round-lot transactions for account of members—
purchases
Apr. 22
3,355,112
2,357,890
3,263,655
Short
sales
Apr. 22
555,170
341,670
567,250
659,450
Other
sales
Apr. 22
3,047,805
1,992,922
2,570,804
3,431,760
Apr. 22
3,602,975
2,334,592
3,138,054
4,091,210
sales
Total
DEALERS
EXCHANGE
Odd-lot
sales
Number
Dollar
of
—
AND
-Inventory
SECURITIES
by dealers
shares
(customers'
Customers'
r-
.
Customers'
1,894,274
1,260,341
1,519,716
Implement Tires (Number of)—
Shipments
$64,930,707
$73,033,522
$38,508,521
Apr. 22
1,643,615
1,140,057
1,298,812
1,967,040
7,833
11,862
8,809
other sales
Apr. 22
1,629,053
1,132,224
1,286,950
$80,079,227
$56,393,379
$61,557,659
438,980
316,860
348,560
529,790
sales by dealers—
of shares—Total sales.
Apr. 22
sales
Tread
Other
sales
_
ROUND-LOT
STOCK
SALES
ON
N.
Y.
Short
Inventory
438,980
316,860
348,560
529,790
As
647,870
441,490
587,670
692,910
General
of
GROSS
April 30
Net
692,620
426,880
Apr. 22
14,745,520
10,366,290
709,660
13,341,240
47,619,350
Apr. 22
15,438,140
10,793,170
14,050,900
S.
18,357,130
737,780
°f
5,189,029
$281,775,767
AND
$285,459,964
5,969,072
__
annual
rate
3.325%
at
April 30
face
any
Total
119.9
119.8
•
120.0
119.7
May 10
*90.7
91.2
3.336%
$279,490,892
2.824%
(000's
amount
that
Janf^L i960"as a^inst^a^V^gs^^asL °of
fPrime Western zinJ ?iii
pound.
omitted):
may
be
outstanding
$295,000,000
$295,000,000
$288,000,000
288 787 347
286,826,484
285,353,353
131,729
public
gross
*107.0
106.7
107.8
97.1
*96.2
95.6
102.8
May 10
128.4
128.4
128.7
128.1
138,311
106,604
$288,919,076
$286,964,796
$285,459,964
407,970
408,805
419,708
$288,511,106
debt
obligations
not
owned
by
$286,555,990
$285,040,255
6,488,893
8,444,010
2,959,744
the
Treasury
Total gross
__
-
.
t
public debt and guaranteed
obligations
Deduct—Other
outstanding
gations not subject
Monthly Investment plan.
LIMITATION
90.7
107.3
May 10
foods
91.5
May 10
foods.
Meats
farm~and
DEBT
time
Guaranteed
May 10
products
All commodities other than
of
—As
STATUTORY
Outstanding—
commodities-
a
DIRECT
balance
debt
GOVT.
Total
Commodity Group—
one-half cent
$286,964,796
$282,624,922
DEBT
,
funds
Computed
Apr. 22
s-w
Processed
30,058,000
6,294,154
(pounds)
STATES
37,665,000
38,569,000
34,515,000
GUARANTEED—(000's omitted):
U.
sales
Farm
33,617,000
$288,919,076
.
sales—
Total sales
All
9,001,961
33,145,000
33,042,000
STOCK
sales
Other
4,435,391
4,459,094
7,629,223
35,233,000
(pounds)
UNITED
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS►
ACCOUNT OF MEMBERS
(SHARES^
round-lot
*4.042,697
27,776^000
Production
FOR
Total
*4,010,910
(Camelback)—
(pounds)
Apr. 22
of shares
THE
931,272
10,112,657
Rubber
Apr. 22
Round-lot purchases by dealers— Number
TOTAL
407,408
4 240 827
__
Shipments
Apr. 22
Number
447,911
307,364
1,041,590
359,974
Production
$111,918,848
Short
Round-lot
305,383
327,486
_
—
Shipments
1,958,231
Apr. 22
value
1,304.042
1,390,661
3,680,472
3,281,836
„—.
Inventory
14,562
3,501,888
1,029,625
_
2,297,540
$95,585,664
Apr. 22
*1,275,433
...1,400,931
Passenger, Motorcycle, Truck and Bus InnerTubes (Number of)—
■
Apr. 22
short sales
Dollar
■
Apr. 22
value
1,436,191
Inventory
'v
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
1,158,457
3,777,038
!
——
Tractor
ON
purchases)—t
9,370,874
22,971,526
(Number of)—
—
Production
N. Y. STOCK
EXCHANGE COMMISSIONi
SPECIALISTS
8,578,397
9,679,058
Bus Tires
and
(Number of)
Production
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
March:
of
24,144,386
Shipments
3,678,360
Total
ASSOCIATION
Passenger and Motorcycle Tires
Total
Other
:
„—
RUBBER MANUFACTURING
transactions initiated on the floor—
Other
of
131.8
NONFARM
IN
associations
loan
Other
as
129.7
117.3
3.68
FINANCING
Miscellaneous
149.2
120.6
2.93
Mutual
-
Teh)
&
companies
and
192.0
3.92
OF
Short
Total
*'
Tel.
Amer.
i.
and
Insurance
2.268,570
199.3
154.7
132.6
5.70
-
incl.
BOARD—Month
Apr. 22
.
134.0
April:
:
(200)
Savings
144.9
*136.0
YIELD—100
(10)
AREAS
ACCOUNT OF MEM¬
AND SPECIALISTS
specialists in stocks in which registered—
FOR
BERS, EXCEPT ODD-LOT DEALERS
91.8
*147:5
99.0
132.0
131.7
;
;
ESTATE
REAL
May 13
92.8
'
.
120.9
STOCKS—Month of
(15)
Insurance
138.7
199.4
(125)
(not
99.3
133.7
132.7
AVERAGE
WEIGHTED
COMMON
107.8
155.0
:
Railroads (25)
ASSOCIATION:
;
care
Industrials
107.0
108.7
146.5
:
i_:
Reading and recreation
goods and services
386.4
108.4
.
'
—
Other
4.46
382,0
.
Group
103.8
136.3
93.0
girls'
care
Personal
4.68
Utilities Group-
and
140.3
104.3
139.7
—___
——II—II—IIIIIII III—IIIIIII
Medical
4.96
4.98
.
118.5
139.0
108.8
boys'
apparel
Public
4.38
A
139.1
:
99.6
•
Transportation
4.13
.May 17
128.7
7
136.9
:
—:
operation
and
Other
■
124.0
104.7
Footwear
86.51
4.11
141.0
137.2
—
Housefurnishings
87.18
37.59
114.3
131.2
134.9
89.37
84.94
86.24
107.3
117.8
.
111.3
108.9
87.86
86.78
102.9
118.0
1C53=?=100)
(Jan.
fuels and fuel oil
87.45
85.33
120.7
124.1
home
84.55
85.33
113.8
125.9
103.4
home
84.43
86.91
106.2
116.5
125.0
—
'
82.52
V
134.1
107.2
116.4
141.2
at
from
food
87.32
■■U-fa
117.7
115.5
135.2
131.3
Solid
.
corporate
Transactions of
products
and fish—
products
_:
and vegetables—
and
89.51
May 17
.
Aa
-
bakery
_
89.51
DAILY AVERAGES:
TRANSACTIONS
123.7
117.4
114.4
135.5
poultry
away
Rent
.
1949
125.6
114.7
;
and
Other
Food
84.94
May 17
U. S. Government Bonds
ROUND-LOT
2,932
INDEX—1947-1949=100—•
home
at
Gas
May 17
Group.
Unfilled orders (tons)
4,004
3,157
Housing
DAILY AVERAGES:
Group
Percentage of
4,305
Food
11.000c
Group
Production
3,755
117.7
32.600c
May 17
Orders received
4,151
2,338
of March:
May 17
NATIONAL PAPERBOARD
10,691
items
May 17
Industrials
11,613
4,118
PRICE
CONSUMER
31.925c
13.000c
Baa
Public
8,711
11,514
;
credit
32.600c
30.550c
11.800c
May 17
Railroad
10,039
125.7
$33.17
13.000c
A
Average
10,126
3,174
Service
May 17
MOODY'S BOND YIELD
2,695
Charge accounts
32.600c
May 17
Utilities
8,69i
2,706
loans..
payment
6.196c
13.000C
Aa
Industrials
9,997
4,222
Noninstalment credit
$66.41
13.500C
Aaa
Public
14,494
9,940
—
—
6.196c
May 11
corporate
Railroad
34,234
16,677
modernization loans
and
$66.41
.May 11
U. S. Government Bonds—
Average
$44,925
39,408
.
gcods
consumer
Repairs
311
308
327
13.500c
.
at
$51,021
39,648
\
credit
credit
6.196c
May 11
at
(New York)
tin
$87,300
$51,162
March 31:
oi
as
consumer
$66.41
May 11
,
at
tZinc
$91,500
16.876
millions
in
$33.17
May 11
at
Louis)
24,700
$93,400
6.196c
May 11
,
at
refinery
(New York)
Export
12,000
24,600
CREDIT
Instalment
All
at
$50,600
12,700
25,800
OUTSTANDING—BOARD
OF GOVERNORS OF THE FEDERAL RE¬
SERVE SYSTEM—REVISED SERIES—Esti¬
mated short and intermediate term credit
J. QUOTATIONS):
copper—
refinery
$54,200
—
$66.41
May 10
ton)
M.
A
$54,700
of dollars):
Total
Month
(E.
$710,994,544
March
of
12,900
CONSUMER
Single
May 10
(per gross
13,263,000
13,139,000
304
M3)" *9
Pig iron
PRICES
$472,198,066
COM-
OF
Month
-
'Peisonal loans
Ma)r 12
Finished
Scrap steel
$692,858,137
DEPT.
-
Automobile
13,350,000
DUN A
BRADSTREET, INC
METAL
$614,405,217
90,589,327
—.
Other
—
$416,523,341
55,674,725
York City
SERIES
Retail
Total
INDUSTRIAL)
$559,403,600
.133,454,537
NEW
(Millions
225,200,000
140,600,000
INDEX—FEDERAL RESERVE
AND
30,276,024
146,148,637
190,400.000
179,800.000
May
ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)
(COMMERCIAL
49,578,040
23,555,980
-U'
INVENTORIES
MERCE
$415,600,000
206.000,000
EDISON
AGE
$397,800,000
$530,400,000
$385,800,000
May
Pennsylvania anthracite (tons).
=
19,941,676
124,424,146
'
—-
City-:
York
Manufacturing
May 12
municipal-
AVERAGE
28,878,541
,35,087,559
—
Total including New
587,773
May 12
DEPARTMENT STORE SALES
44,528,905
96,522,747
111,701,397
Total United States
New
678,160
549,252
,
May 12
(U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)
IRON
558,395
May 12
Federal
FAILURES
598,384
643,271
'
COAL OUTPUT
SYSTEM—1947-49
641,703
551*838
7
7
May 12
construction—
and
90,851,161
——————
BUSINESS
,:
construction
State
,
ENGINEERING
' i\.":
109,396,294
———
_—-.
Wholesale
construction-
Private
Public
—
•
■
74,344,911
156,176.768
Mountain
21,616,000
83.501.000
90,942,023
Central
West
208.419,000
21,468.000
54,609,709
39,604,291
6,517,000
218 772,000
ASSOCIATION
May
of cars)—May
2.7,507,000
$81,039,758
21,558,428
—
———
---
Central
South
27.003.000
$22,242,748
51,828,277
63,580,208
—--——
Central
East
Ago
$23,513,930
—
——
—.
South Atlantic
7,200,225
7,014,310
Year
Month
..
■
Atlantic
Previous
VALUATION — DUN &
INC.—317 CITIES—Month
v
England
New
6,771.210
26,924,000
of that date:
are as
Month
PERMIT
BUILDING
AMERICAN
Crude
of quotations*
cases
Latest
93.4
78.5
♦73.8
(bbls. of
in
or*
Ago
Middle
PETROLEUM INSTITUTE:
Crude oil and condensate output—daily average
Dates shown in first column are either for the
Year
Ago
§71.7
■.
May 21
(net tons)—
Steel
month ended
or
Week
Week
Steel operations (per cent
or
Previous
Latest
Indicated
Thursday, May 19, 1960
and other figures for the
statistical tabulations cover production
latest week
AMERICAN
.
'
(2194)
46
runs- 5B;?sed cn new annual capacity of 148,570,970 tons
£ -5 2* .tNu.mbcr oi orders not reported since introduction of
Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
public
to debt
debt
obli¬
limitation
cttw
*
«
Grand
Balance
Under
total
face
outstanding—
amount
above
ot obligations
authority.—
Issuable
Number 5952
Volume 191
.
.
The Commercial and
Financial Chronicle
.
(2195)
i
Trevor Named V.P.
Funds
Of Two
loans incurred
by subsidiaries and
to
defray
the
cost
of
tenant
The
three
owned
Trevor has been elected a Broadway, New
Vice-President of Affiliated Fund, 1,324,000 square
American
and
Business
Inc., open-end investment
Shares,
-
able
area
916,000
square
60
Broad
Street
of
the
the
first
of
the
in Toronto.
feet.
Mr.
Frank
Jayson
is
engaging
to
be
and
of
der the firm
pany.
name
of
Canada,
Co.,
gan his
sales
*.t
offering consists of $20,000,6 V2%
:
due
1975
E. I. DU PONT DE NEM0URS&C0MPANY
({DIP)
financial
Leaving Corp.joining Boothe,
Wilmington, Del., May 16, 1960
The Board of
of
manager
United
of
the
Exchange and
Howell, Douglass &
ties
He
San
Stock
share
a
Series
able
States
was-
a
8,
Francisco
Co.,
interim
stock.
The
of¬
fering is being made only in units,
each unit
comprising $100 princi¬
pal
amount
an
attached
of
debentures
warrant
four shares of
two shares of
to
Stock
for
securi¬
close of business
-
DIVIDEND
COAL
Guarantee Company have
an increase in the
divi¬
declared
a
meeting held today, declared a quar¬
terly dividend of 35 cents per share on
the Common Stock of the Company, pay¬
able on June 14, 1960, to shareholders
of record at the close of business on May
27, 1960. Checks will be mailed.
dend to
NOTES
forty (40.) cents per share
designated as the second regular
quarter-annual dividend for 1960,
payable May" 20, 1960 to stock¬
holders of record on May 6, 1960.
A further dividend of
for the third quarter of 1960, pay¬
able on August 18 to stockholders
SECURITY TRADERS ASSOCIATION OF LOS ANGELES
The
of record August 4.
Security Traders Association of Los Angeles will hold their
Spring Party at the Riviera Hotel in Palm Springs the
WILLIAM H. DEATLY
annual
week-end of June 3-5.
The Riviera is Palm
and will also be the site of the National
tion
convention
in
forty (40)
share has been declared
cents per
Security Traders Associa¬
1961.
With the
facilities of the Riviera and a lot of hard work by
Ralph Dahl, Evans MacCormack & Co., and his com¬
mittee, chairmaned by William Ginn, Dean Witter & Co., the Asso¬
ciation expects its best Spring Party in1 history.
V L '
Many out-of-town guests are expected this year as well as a
Dividend No.
President
"yable
SECURITY TRADERS ASSOCIATION OF NEW YORK
deClared,
stock.
b
B
Brooklyn,
NATIONAL
I960.
j June
h°Wet5M
GOULD-
Com
^
^
3'
Stock has
mon
record turnout of local members.
1
Cents
Five
121
121 of Twenty-
Mn
j
Dividend N<n
A
15,
WEB,
Preside*
BATTERIES,
Manufacturers
13
attend
and military storage batteries
plus motive specialties.
Thursday, June 2, at the Coachman,
Street, beginning at 5:30 p.m.
Members wishing to
contact Sidney Jacobs, Sidney Jacobs Co.
A
of
50c
clared
NOTICE
was
the
Board
by
record
common
the
stock
Principal
The
A.
maturity.
They
deemable
at
payable
will
after
ies
which
may
regular
(50c)
par
at
not
the
be redeemed
decreasing from 104y2%
mS, accruod interest.
The
company
be
hnu^lon.
win
arnvi
<
on
declared
and
f,s rucfures
strnnf-
now
G.
payable
record
Public Service Electric
REGNER, Secretary-Treasurer
and Gas
CYANAMID
clared the
LORILLARD RESEARCH
TWO
office
HUNDRED
EXPERIENCE
ican
Cyanamid Company today
declared a quarterly dividend of
eighty-seven and one-half cents
(87V2C)
per
share on
the out¬
3V2% Cumulative Preferred Stock,
Series
feet.
OLD GOLD
STRAIGHTS
KENT
King Size
Crush-Proof Box
FILTERS
Regular
King Size
Crush-Proof Box
Regular
King Size
OLD GOLD
to
NEWPORT
SPRING
June
King Size
forty
Smoking
Little
Chewing
Turkish
Cigars
Tobaccos
Cigarettes
BEECH-NUT
MURAD
BAGPIPE
HELMAR
BETWEEN
BRIGGS
UNION
LEADER
THE
ACTS
business
1,
the
close
of
1,
1960,
of
1960.
4.08%
4.18%
4.30%
5.05%
Cyanamid Company today
declared a quarterly dividend of
the
cents
(40<f) per share on
outstanding shares of the
.
....
1.045
Series
....
1.075
.
1.2625
close
of
business
June
.
,
or
,
.
.35
.
45
dividends
before
are
June
payable
30, 1960
on
to
stockholders of record May 31,
1960.
Stock of the Company,
payable June 24,
1960,
to
the
holders of such stock of record
the
,
.
Common
at
.
Preference Common
All
$1.02
Series
Series
Series
$1.40 Dividend
Common
ican
Tobaccos
?ne
stock
at
Per Shara
Cumulative Preferred
-
The Board of Directors of Amer¬
King Size
being built
payable July
holders of such
COMMON DIVIDEND
EMBASSY
King Size
D,
the
record
Dividend
Stock
of Amer¬
standing shares of the Company's
Cigarettes
following dividends
Class of
DIVIDEND
The Board of Directors
YEARS OF TOBACCO
DIVIDENDS
for the quarter ending June 30,
1960:
G. O. DAVIES, Treasurer
May 18, I960
THE FINEST CIGARETTES-THROUGH
FIRST WITH
con-
argely to repay accounts and
QUARTERLY
1960. Checks will be mailed.
office
,
Company
The Board of Directors has de¬
owns
scheduled for conninfr l0" ln I969 an(l f°r the planothpr^^d assembling of land for
ance nfU,'Idlng Pr°jects. The balusph i
net Pr°ceeds will be
PAUL, MINN.
($3
Wis.
PREFERRED
approxi-
of
COMPANY
New York,
$9>386,000,
,
Corporation,
stockholders
AMERICAN
payable July 1, I960, to stockholders of record at the
close of business June 3,
of the net proavnif u?0m,
offering will be
Duma
-for general corporate
of
lncluding financing part
thr»o
^ost of construction of the
Cp
stock
cyAJVAMJl?
100%,
square
part,
capital
ST.
a
cents
1960
regular quarterly dividend of $.55 per share on the
ug in I960- These buildings
renfable area of ap-
surtbstantial
to
declared
fifty
1960.
r-"
outstanding Common Stock of P. Lorillard Company have been
prices
to
NOTICE
commence ccn-
hnately 4,587,000
17,
the
of
1960,
the
on
of
Regular quarterly dividend of $1.75 per share on the Preferred
Stock and
deben-
seventh
a
DIVIDEND
on
at
ee,. office buildings, is
hnn^'lng three additional
Angs' an(f WB1
15,
27,
has
dividend
NEWARK. N. J.
re¬
(U
ctr
value)
L.
the
presently
share
Milwaukee,
to
of
option
Directors
quarterly
per
June
May
of
Board
the
prior
year
date
DAGGETT
DIVIDEND
The
May
have
company prior to May 1, 1965,
nd
H.
a
is
will
the
of
2, 1960.
President
eun.e£t of an annual sinking fund
icci
wi^ commence on May 1,
nf
+v,anc? *s deigned to retire 90%
°t
the
one
June
entitles
amount.
debentures
issue
15,
XBriggs&Stratton);
holder's option either in cash
by surrender of debentures at
or
June
stockholders
on
of
11,
payable
to
ac¬
on
de¬
April
on
1960
price of
$12.50 per share
through May 1,
1975, the maturity date of the de¬
bentures. Upon the exercise of
warrants, the purchase price for
the
share
Stock,
Directors
CORPORATION
DIVIDEND
per
Common
BRIGGS & STRATTON
DIVIDEND
REGULAR
QUARTERLY
should
(with
INC.
complete
a
line of automotive, industrial
N. V.
Security Traders Association of New York-Bowling League
William
of
1960
at
President
•
Springs newest hotel
stock. The
stock
NOTICE
Trustees of The Title
COMPANY
at
the holder to
purchase four shares
common
Secretary
THE TITLE GUARANTEE
stock) and
1960,
quarterly
May 23, 1960.
on
common
16,
the
1960, payable June
P. S. DU PONT,
Each1
warrant, which will be de¬
tachable
and
exercisable
com¬
of
second
of
July
on
14, 1960, to stockholders of record at the
common
Aug.
on
share
a
the
as
Pre¬
pay¬
DIVIDEND NOTICES
purchase
price of each unit is $115 and
crued interest.
mencing
business
$1.50
dividend
both
stockholders
to
of
the
on
Series,
close
also
Stock—$4.50
share
1960,
the
at
1960;
will hold their annual dinner
common
25,
July
brokers, in 1939.
Sheppard
Preferred
87V2< a
Stock—$3.50
Common
partner in
a
the
on
and
ferred
record
Corporation.
Directors has declared this
day regularquarterly dividends of $1.12V2
Mr.
COMPANY
(with warrants
to purchase 800,shares) and 400,000
110
DIVIDENCMNOTICES
CONSOLIDATION
000
common
at
The Board of Directors of
The
shares of
A.
securi¬
a
offices
Vice-President & Secretary
nancing will mark the first public
offering of securities of one of the
leading
companies
engaged
in
building
and
operating
office
buildings.
corporation's
from
Tudor Boulevard.
district manager for Eastern
came
business
John Corcoran,
managed
sinking fund debentures
and
to
member
G. Harry
Connell
—
Cavanaugh is conducting
ties
May 17, 1960.
corporation. The fi¬
the
1943, when
as
general
IBM
business
Leasing
Corp.
group
Sup¬
Howell, Jr., widely known in
career
& Co. as a
analyst1 for the
Loeb
&
Co.,
today
(May 19) is offering sinking fund
debentures, warrants and common
of this
to
and
FRANCISCO, Calif.—James
with IBM in 1929, and in 1941 be¬
'
until
C. A. Cavanaugh Opens
BUFFALO,- N. Y.
Howell had served for three years
as
Vice-President
and
national
New
be¬
Munitions
1942
returned
Prior
Ca¬
He
as
sales manager. He has been Presi¬
dent of the company since 1945.
of Boothe
a
Corp.,
served
organizations
istrative assistant to the President
World Trade
York.
of
activities, has been named admin¬
Surety
and IBM
un¬
;
of
regional,
Ma-
Assur-
e
he
B.
director
a
Sheppard
Howell Joins Boothe
anceCo.of
Jayvee Com¬
■
partment
SAN
Imperial
Li f
securities business from offices at
160 Broadway, New York
City
general
held
Co.,
Toronto,
Ltd.,
K
in
Mr*
and personnel in the wartime De¬
been associated
has
security
of
board
bank
Abbett
Kuhn,
The
Mont¬
chines
building, to
Forms Jayvee Co.
underwriting
000
of
weekly
nadian
Securities Off'd
stock
Bank
International
Business
be started this year and'
completed
early in 1962, will have a rentable
area
of 850,000 square feet.
Uris Bldg.
by
appointed
Sheppard
past eight years.
An
was
is President of
square
The
at
meeting
combined rent¬
feet; and 850 Third
Avenue, with 471,000 square feet.
invest¬
Paul Trevor
depart¬
ment of Lord,
Abbett & Co., 63 Wall Street, New
York City, investment advisor to
the
two
investment companies.
Robert S. Driscoll, a partner of
Lord, Abbett & Co. will continue
the general supervision of all of
the firm's investment activities.
senior
of
Harry Sheppard
director
real
Plaza,
in
000
of the
Lord,
G.
a
buildings under construction,
New York
City, are: 320
Park Avenue, with
563,000 square
feet; 350 Park Avenue, with 463,-
ment
Mr. Trevor
with
rentable
and
Three
Penn
Center
Plaza and Two Penn Center
all
made manager
with
City,
of
area,
been
Is o
feet
Canada.
director
plies from
The
aggregating
about $600,•000,000, ac¬
cording to an
announcement
by H.I. Prankaid, 2nd, President. Mr;
prarkard
stated that Mr.
Trevor
has
a
York
Philadelphia, with
companies
with assets
Bank of Montreal
completed buildings
by the company are Two
pnul
Tnc
Sheppard Dir. of
improvements.
47
J. Irving Kibbe
Secretary
1,
1960.
'
FRIENDS
INDIA HOUSE
MADISON
HAVANA
BLOSSOM
.
R.
S.
KYLE,
New York, May 17, 1960.
Secretory
PVBLIC SERVICE
'
CROSSROADS
OF
THE
EAST
The
Commercial and
Financial Chronicle
. . .
COMING
WASHINGTON AND YOU
from the
Senator
in the
,
tapped at Los
the man
Angeles
to
Richard M.
oppose
43-year-old
New Englander
is the candi¬
date whom the other Democratic
hopefuls must overtake. Regard¬
the
However,
nominate, the big ques¬
view of the
serious
international develop¬
egates
tion will remain in
ments:
Can
Of
win?
Democrat
a
the Democrat higherups
publicly, and privately as
of now, think a Democrat will
move into the White House next
course,
apparently is no doubt
at all that the Senate will re¬
main in control of the Demo¬
There
the
after
doubtful Senate seat,
the Demo¬
major¬
ity and thus control the Senate.
come
Senate
the
of
estant),
seats
years.
.y/f
■
1
Of
about the
Democratic Presidential picture.
Capital
Nation's
Hill, in the Senate
chamber and the Senate offices
On
Capitol
of
Senator
Lyndon B. Johnson of Texas
are stoutly maintaining that the
colleagues
some
ity
call option, risk limited
option (maybe a few
hundred dollars), you can make unlimited
profits (possibly thousands of dollars in
90 days) is explained in this clear, simple
How with a put or
to the cost of the
the subject.
on
traders
and
pro¬
If
purchase
"buy"
and
"sell"
(call and put) because they know
these
options can make big profits for
them
and
also
can
protect
unrealized
"paper" profits on the stocks they own.
how
on
how
you
too
make
can
they
how
maximum
investment.
minimum
do
It
it
can
despite
his
against Senator Morse,
and
profits
shows
book
This
you
only $3.M.
examine it Free.
and mail this coupon today.
you
can
are
will
I
Te your favorite bookseller, or
CROWN Publishers, Dept. A-7,
Park Avenue South, New Fork 18, N. Y.
419
I
■
Please send me Herbert Filer's Understanding Put and Call Options for 10 days'
I
free
J
Nixon.
i
that
■
I
If not convinced that it can pay for itself
l
many times over,
I
people
in
*
I may return it and pay I
plus the postage charge within 10 days as
payment in full
nominee
than
will
he
is
thought
Senator
Address
| City
Zone....State
| p Save postage. Check here if you prefer to
•
enclose check or money order for $3.00. Then
I
we pay
postage. Same moneyback guarantee.
I
j
|
!
I
|
as
Vice-Presidential
faith.
votes
of
Johnson's
un¬
bloc
South
and
the
from
probably
from the border states
is the No. 1 barrier to the Ken¬
There
is
no
of
.
Virginia
annual
that it had been cast
he
press
At
in
the
the
late
E.
Smith
of
last
Catholic
preference
that
aside,
Senator
fact
Governor
York,
to
run
on
a
D.
the
in
Symington's
former
believes
(Baltimore,
of
ardent
an
New
Deal
came
to
Congress¬
just about
President
that
recommended.
spring
Spring Country
Green
Club.
June
(Chicago, 111.)
3, 1960
Bond Club of Chicago 47th
field
For
(Connecticut)
June 3, 1960
Traders
Security
Association of
law
repeal?
or
laws
Obviously,
he maintains that the New Deal
June 3, 1960
Bond
Club
Field
Day
Country
Federal Deposit Insurance
poration,
chances
[This
can¬
are
Cor¬
(New York City)
New York annual
at the
Sleepy Hollow
is
intended
to
re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or
with his en¬
Syming¬
Senator
may
the "Chronicle's"
not
own
Y.
Country Club, Scarborough, N.
June 3,
Bond
1960 (Detroit, Mich.)
Club of Detroit spring
tournament
&
Essex, Ont., Can¬
Club,
Country
golf
Golf
Essex
at
Golf
Securities
Club;-
Cricket Club,
June
Pa.)
Associa¬
Aronomink
3, 1960 (Philadelphia,
Philadelphia
tennis
at
Menon
Haverford, Pa.
3-5, 1960
(Los Angeles,
Calif.)
good laws.
column
Club,
of
legislation like REA, TVA, SEC,
arm.
Tru¬
at
outing
summer
Meadow
ada.
apologies.
what
you
annual
day at Knollwood Club.
tion annual outing at
Just
Md.)
Baltimore
New Britain, Conn.
was
no
Club
the
supported
has
1960
3,
Bond
June
would
didate of the Democrats.
Simultaneously
2-5, 1960 (Ponte Vedra, Fla.)
Group
of Investment
Bankers Association meeting.
Southern
him:
campaign
compromise
June
the
young
a
Coachman, 13
Critics of the New Deal legis¬
lation are asked in
effect by
President
that
and
this he
backers
the
Mr.
as
Roosevelt
good that Senator Syming¬
of
to
of
an¬
William St.
Connecticut
The Texan
everything
Truman's endorsement gave the
sagging Missourian's
a
political shot in
Only time will tell.
dinner at the
nual
despite
Roosevelt and his
man,
York.
dorsement
lost
Association
Bowling League
York
New
considered
is
he
hopefuls,
Congress
jority votes for Herbert Hoover
over the Old Warrior from New
still
sec¬
(New York City)
Traders
Shuttle
Johnson,
philosophy.
primary election
months later
that
that
crat
the Mountain State cast its ma¬
Senator
scattered
and
a
supporter of President Franklin
A few
year.
East
Stevenson, who twice
Dwight D. Eisenhower.
New
Virginia
West
the
is
there
particularly
tions of the Mid-West for Adlai
major party Presidential ticket,
carried
time
same
following,
most conservative of the Demo¬
1928,
In
Alfred
the
Club.
2, 1960
Security
outing at
sizable
religion
that
wished
(Dallas, Texas)
Security Dealers Associa¬
spring party at the
annual
June
behind Johnson.
confer¬
Washington
tion
Virginia and Senator Richard B.
Russell of Georgia are rallying
took a verbal thrashing
in
West
Virginia.
Only the
most
idealistic politico would
acknowledge that religion has
been eliminated entirely for the
remainder of the Presidential
election year. President Eisen¬
hower expressed
doubt at his
ligion
last
Dallas
nedy candidacy. Such stalwarts
as
Senator
Harry F. Byrd of
question that re¬
Security Traders Association
Los Angeles spring party at
oi
the
Riviera, Palm Springs.
coincide with
views. I
Attention Brokers and
TRADING
Dealers:
MARKETS
Botany Industries
Indian Head
Mills
Official Films
,rjs
Southeastern Pub.
Serv.
a
Carl Marks
our
While
20 BROAD STREET
TEL:
Kennedy's
Senator
and
close
associates
spent
considerable money in
West Virginia, nevertheless, it
that
a
Catholic
Co. Inc.
NEW YORK 5, N. Y.
•
HANOVER 2-0050
TELETYPE NY 1-971
family
proved
Our Hew
&
York telephone
CAnal
number is
6-3840
; FOREIGN SECURITIES SPECIALISTS
opponent," said a
Nixon associate.
was
doubted
fairly sizable
but
known,
Religious Issue Weakened
good chance of car¬
rying West Virginia, and if he
did he would capture the nom¬
ination at Los Angeles.
nedy
(Virginia Beach,
May 28, 1960
June
the
knows
of life,
facts
Senator
that
Republicans
who
none
Ken¬
of
dinner
'
Club
Northwood
one
no
political
nominee of the Catholic
"We will he considering Ken¬
Name.
But
the ticket, chances
a
name
fine
a
Vice-President
Mr. Nixon said all along
nedy had
examination.
nothing.
Otherwise I
Iuinuy uiuea over, x maywill pay ityou 83.00
return sua pa
■
the
be
other
on
as
Johnson's Philosophy
fail to nominate
strong that the
are
described
from Massachusetts
the Senator
I
many
who make their
living out of politics, directly or
indirectly, who feel that the
Kennedy bandwagon is rolling
along. Among those feeling that
in
»
Kennedy
ton will be the
Washington,
It can
Fill
a
Kennedy
Senator
to
he
young man.
get the nom¬
Republican Vicenominee will not
Catholic. However, should
ination, the
Presidential
are
There
objection
whom
should
Kennedy
man
Nixon's Views
help you make a fortune.
And
running
also
sell
costs
out of Oregon are
showing
options on your own
stock to increase income, where and how
to buy and sell puts and calls, bow to use
them
to make
capital gains instead of
short-term profits, how to use options to
protect profits on your stocks, etc.
you
Protestant state.
Incidentally, there is specu¬
lation
in
Washington
that if
believe
the presidency.
reports
correct, Mr, Kennedy may very
well make another impressive
options
shows
in the Oregon
Senator Morse's name
is also entered, although he has
no
chance of getting the nom¬
primary.
ination for
book
Oregon,
the preference or
likewise entered
by HERBERT FILES
This
of
popularity
contest, is a matter of specula¬
tion/, Although
not of their
choice, the names of Senators
Symington
and
Johnson
are
in
Options
authority
state
home
Morse's
POT and CALL
of successful
could carry a
<
said he had no
ton, Mr. Truman
could be removed.
will say if
Senator Kennedy triumphs over
Senator
Wayne
Morse,
in
Club
party at Cavalier Hotel.
but
they
what
Club
;
1960
May 26-28,
va.)
ence
Oregon's Verdict
Await
Understanding
#1
Johnson, Sy¬
In other words,
Just
Thousands
fessionals
beat
would have been different.
book
the
"you can't
with nobody."
that
young personable Mr. Kennedy
in
West
Virginia
the
story
Transactions
Market
candi¬
mington and Stevenson lieuten¬
ants
are
contending that had
their man been running against
Limited Risk-Unlimited Profit
Stock
votes
someone
-
on
Democrat
the
all
doubts that Sena¬
tor Humphrey was the easiest
one
to beat.
Because he was
the
weakest candidate, the
"Stop Kennedy" forces are say¬
ing in the wake of the Wiscon¬
sin and West Virginia popular¬
being advanced in the
are
dance,
Stocks'."
'Get Rich Through
of
author
the
"He's
the Democrates
dates, no one
Rock
Association
Glee
York
New
be
* ;,y,
however, a thou¬
one
different opin¬
and
ions
a
Group ol
Association
(New York City)
Traders
Security
Hum¬
Kennedy,
Mr.
over
Rolling
at
May 21, 1960
doned hi's race.
At this time,
sand
Senator
Bankers
Ligonier, Pa.
Catholic, he immediately aban¬
for election every two
up
Meeting
Bond
course,
Pennsylvania
Investment
to
people who ever thought he
had
a
chance of getting the
nomination. When he failed to
earrv West Virginia (95% prot-
crats would still have a
One-third
Western
people are even
of
unlikely,
is
which
May 20, 1960 (Pittsburgh, Pa.)
phrey, an ultra liberal, appar¬
ently was one of only a handful
general
8
Nov.
Of
annual
ciation
nomination.
Even if the Democrats
election.
(Baltimore, Md.)
Security Traders Asso¬
spring outing at
Maryland Country Club.
Baltimore
of Virginia.
contending that they expect
world.
crats
May 20, 1960
get the delegates from West
Virginia where Senator Ken¬
nedy not only triumphed over
Senator Hubert H. Humphrey,
but
knocked
the
Minnesotan
-clear out of the contest for the
eight years of
Republicanism at 1600 Pennsyl¬
vania Avenue, one of the most
famous
addresses
in all the
lost every
Dealers
of
Nashvilie
Spring Party; cocktails and din¬
ner
May 19 at Hillwood Country
Club; outing May 20 at Bellemeade Country Club.
coming
The Johnson
after
January
May 19-20, 1960 (Nashville, Tenn )
people are not
State
both
Country Club
party
Security
yet ready to
do very much pin-pointing, but
they say right off hand that he
will have the Texas delegates,
along with those from Oklahoma
and
Kentucky, plus the great
majority from the Old South
son
by
May
19
at
Sherman Hotel Downtown Club.
from? Well that
another question. The John¬
is
Nordic Hills
at
preceded
delegate
those 500
Where are
votes
Democrat del¬
less of whom the
20
There are a few old "pros,"
including Speaker of the House
geles Convention with 500 dele¬
gates. It will take a minimum
of 761 to nominate.
Nixon.
*
(Chicago, III)
Exempters annual Field Day Mav
of Texas, who assertedly
believe that Senator
Johnson will go to the Los An¬
nomination, this
necessarily mean he
not
be
May 19-20, 1960
Sam Rayburn
Presidential
will
IN INVESTMENT FIELD
Johnson's Backers
acknowledged by bpth
the
professional and amateur
politicians as the front running
candidate
for
the Democratic
nedy is
does
nation's capital
Majority Leader remains
nomination picture.
Senate
D. C. — Al¬
John F. Ken¬
WASHINGTON,
EVENTS
interpretations
behind-the-scenes
though
Thursday, May 19, 1960
(2196)
48
LERNER ft CO.
Investment
Securities
10 Post Office Square,
w&'iw
\
"
$
,
\
Telephone
^
HUbbard 2-1990
Boston 9,
Mass.
@FedFRASER