Full text of Commercial and Financial Chronicle : May 2, 1963, Vol. 197, No. 6260

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

The COMMERCIAL and FINANCIAL

Reg. U. S. Pat Oft,,

EDITORIAL

is about to happen in the two leading world
questions are raised but

or

answered. The experts,

few

like the rest of

Soviets—if he is and has really been in control
the

Discussion

of

They are uncertain whether world
Communism will much longer remain essentially mono¬

of

priorities

restrictions.

flow and

use

domestic

or

and

that

need;

frequent boast of its leaders—or

Mr;

Some
lithic

or

or

possibly already has become dilithic.

possibly polylithic.

Meanwhile there is the query as to

•

the precise

ing of "peaceful coexistence" as proclaimed

«,

mean¬

attain

may

similar

all.

Yet

of

are,

course,

to them

answer

are

upon

of vital

concern

as

it

we

era

grounds. This

the

guess

will be

ures.

v

on

rather

experience

as

abroad,

is

NOW IN

tial

is

urgent
The

problems

strength

the

still

in

there

has

been

lessening

strength

United
efforts

our

them

of

fective,
high.
to

.

States.
to

the

been

payments

the

payments

undertakings in

complete picture of issues
our

Municipal

Securities

store

and

the

Bretton

gold

remains

that

strong...'United

1944,

Indeed,

consist

the world's

largely

of

gold

as a reserve currency rests

(1)

strong

a

United

much

has

States

creditor

position

in

the

total foreign liabilities by a sub-

margin;

comprising

(3)

our

40%

some

large

gold

the

world's

of

long-term

stock,

now

monetary

gold, and available to foreign monetary authorities
at the fixed

too

*

Faith

-

scarcely

■

tion

fostered

in

currency,

noticeable

it.

position

price of $35
a

Until
was

ounce.

the

until

there is

the

taken for

quality
reason

dollar's

of

being

to

ques¬

impregnable

(Continued

on

page

22)

corporate

State,

28.

page

on

per

has

recently,

so

Municipal

STATE UNI MUNICIPAL

623
.•

Dealers

*

Lester, Ryons
So.

Co.

&

Bonds and

California

Exchange

Associate Member American Stock Exchange
Members Pacific Coast Exchange

Offices in Corona del Mar, Encino, Glendale, Hollywood, Long Beach, Oceanside,
San

MEMBERS

MIDWEST STOCK

EXCHANGE^

'Mi

m
WW

Ana,

Santa

Inquiries Invited

Bond

Santa

Monica,

Notes
Jtunicipal Bond Division

THE

Whittier
on

Southern

California Securities

Dept. Teletype: 571-0830
New

Mf

Diego,

FIRST NATIONAL CITY BANK

135 So. LaSalie Street

Agency

Hope Street, Los Angeles 17,

••;

Pasadena, Pomona, Redlands, Riverside,
BOND DEPARTMENT

TWX: 212-571-1414

of

Housing

MULLANEY, WELLS & COMPANY

Securities

770-2661

dollar.

now

considerations:

registered with the SEC and poten¬

CHEMICAL BANK NEW YORK TRUST COMPANY

•

Agreements

as

recog¬

our

•

Corporate & Municipal

770-2541

the

or

reserves

several

Members New York Stock

phones:

Woods

clearly

was

—exceeding

Alfred Hayes

"Securities in Registration" Section, starting

Underwriters

N. Y.

of value

and Public

Distributors

P. O. Box 710, New York 8,

transactions,

foreign assets—largely

ef¬

system

now

investment

and

our

REGISTRATION—Underwriters, dealers and investors in
a

trade

'I;-rworld,' with

A prolongation of heavy deficits cannot fail
it

Gradually,

goods and services at reasonably stable prices; (2)

damage the dollar badly, and to damage along

with

that the

provided for world currencies to be valued

...vstantial

for

deficit

nation.

great

a

the

much

«^^in-^mine|iat^ly usable» for m Wide variety of
,

tA.a

some

quite

in

way

States economy, in which the dollar is expected t<*

Despite all

date, and

have

top priority to the goal

a

dollars.

on

the

deficits

payments

so

structure

major national issues, the

The role of the dollar

_

its

during

in

either

and

a

in

basic

the

Beyond this, the special role of the dollar

monetary

com-

,

deficits, and to do

pre-eminence

became

world's

which

structure.

dollar

attained

States

standard

nized

the

of

all

endi

of priorities—in this case, whether

one

dollar

the

a

My

home

at

these

the

have the power

we

preserve

Like

since

abroad

undirected, almost unconscious,

ling.

we

maintained.

and

nation,

a

will

Housing,

State and

Copy

a

sharing this role principally with the pound ster¬

dollar—the role it

role

this:

of

inextricably

financial

While

the

as

afforded

like

faith.

'

well have its political problems
in Eastern Europe, in Cuba and in
(Continued on page 20)

are

Cents

it became the medium of exchange for a large part

past five years of heavy inter¬

were

SECURITIES

the
that

see

both

the

unquestioned

here
As

willing to assign

are

United

key component of the Free

a

national

The Kremlin may

Public

States,

about

and

to

about

runs

perceptible

colossal practical fail¬

U. S. Government,

world

want

we

fidence,

different

securities

50

foreign

reverse

that

want.

we

same

*'

that in the long reach of

the decade when the doctrines of Marx and Lenin
in actual

the

in

relative

well presently become recognized

may

to talk

dollar of

on

and

way

The

policy

$.• mands ^a sbigh.. .degree *,C^;con>.

to all those who "are

assessed

like

should

World's

to formulate and execute the policies and

venture

history this'

revealed

:

us

be found

can

1839

restoring the dollar's unquestioned standing.

of

case

a

of

dollar, and the dollar in' turn

;

far

so

decisively in

arrest

we

weak dollar

freeing monetary

on

to

problem is

objects to pushing economic growth with cost

I

if

act

a

World War II.

that

for dollar out¬

reasons

growth

of

in

imbalance

expansion burden and placing tax cuts ahead

expounds

and

borders,

of great interest to

payments

linked with the strength of the

of the non-communist world.

programs
•

the

or

guessed,

or

-called

immediate

stand

and

United

greater status is unknown. These and other

a

questions

They,

own

policy must

Dillon's

increases;

theme

scolding Moscow
screaming at the world in general but doing little

and able to do little far from its

treating

Hayes reviews

monetary

reform;

face

so

the moment must be content with

and

in

foreign economic problems with

endorses

plays

frequently
and ardently by Moscow. How long before Peiping, which
at

■v

of

asking whether it-may not even become tri-

are

economic

of "indirect" controls; warns we cannot solve

from domestic

presently become

ESTABLISHED

.

Price

categorically denies subjecting U. S. private lending abroad

past.

lithic—as has been the

.

New York, New York City

to

in

.

us, are ap¬

Khrushchev will remain in actual control of the affairs of

them

FIELD

7, N. Y., Thursday, May 2, 1963

>

parently wondering whether or how much longer Mr.
the

FINANCIAL

By Alfred Hayes,'31 President, Federal Reserve Bank of

of Communism. Many

centers

THE

And Domestic Economic

with "informed" guesses of

Kremlinologists and Peipingologists about what is hap¬
pening

IN

Restoratives to Cure Our

As We See It

The air is filled these days

U1"

PUBLICATION

New York

Number 6260

197

Volume

INFORMATIVE

MOST

AND

LEADING

THE

Chicago 3, IIL FRanklin 2-1166

York

Correspondent

—

'

/

MANHATTAN

Pershing &

Co

-——

BANK

r
Net Active Markets
*

To

UNDERWRITER

T* L* Watson & Co*

We wish

to

buy

DIVERSIFIED

Canadian Securities

DISTRIBUTOR
ESTABLISHED

Maintained

Dealers, Banks and Brokers

IIL CALIFORNIA

1832

Block

DEALER

Inquiries Invited

Members

RIGHTS
Commission

New York Stock Exchange

Orders

Canadian

Executed

On

All

Exchanges

(Expire June 7, 1963)

first

gouthwe&t

American

Stock

Exchange

CANADIAN

Teletype

25

BROAD

STREET
v

company

NEW YORK 4, N. Y.

Goodbody

DALLAS

"

•

PERTH

AMBOY
,

m




212-571-1213

DonmioTi Securities

DIRECT VIRES TO MONTREAL AND TORONTO

MEMBERS
BRIDGEPORT

DEPARTMENT

NEW

YORK

&

STOCK

corporation

Co.
49

EXCHANGE

2 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

i

Exchange Place, New York 5, N. Y.

Teletype 571-0880
M

Area Code 212

1

-

Garment

Industry

MUNICIPAL bond

DEPARTMENT

bank of america

WHitehall 4-8161

1.— N.T.&S.A.

—

v

SAN

FRANCISCO

-

LOS ANGELES

2

For

(1794)

Banks,

The Commercial and Financial
Chronicle

Brokers, Dealers

The Security I Like Best...

only

Call "HANSEATIC"

participate and give their

trading

Trigger-quick
reaches

GEORGE L. BARTLETT

New York

American

Contacts

through

nation¬

our

well

wide wire system.

It

To make

you're getting
possible coverage,

sure

the widest

did

not

tionaries

ture,

HANSEATIC

It

is

Mehiber

their

Exchange

Monthly Stock

„

orders

for any

or

particular

tion; it is based

are

molecular

works

of

cold

Rudd

of

The Alison

has

told

coming

hundred
and

it

in

the

connections will
of

them.

As

is

well

established,

the

makers

basic

several

materials

relative

voids

An

Inc.

(O.T.C.

1963).

ing and

BROKERAGE

trogen,

HOUSE

is

FUNK & SCOTT INDEX
Corporations and Industries

sample of latest index
mail this coupon
INDEX

.

Bids.,
Cleveland 6, Onic
NAME

CITY

STATE-




for

as

in

been

Mexico

it

]
I

I

economy

realized

remain
C

100%

of

by

$3

their

competitive,

the

a

were

quite

1962

subsidiary,

a

figure;
to

year

over

results

share.

a

is

a

an

will

or

a

YORK

OFFICE

Broadway, New York 6, N.Y.
BEekman

3-3622-3

1955-1959
number

a

show
and

on

of

had

the

1,

notes

payable in

1962

to

subsidiary Delwood

January, 1962, brought the
of

Samuel

distributors

vending

milk

of

machines

the New York

a

most

new

Inc.,

Metropolitan

in

areas

beginning of

profitable

that

little
Inde¬

The

com¬

convert
due

5%%

instalments.

receiving sites
and

strategic.

Fort Edward,

Hill

and

In these

Farm

areas

Products

Milk

Co.,

Blonder
Milk

these wholly

are

subsidiaries:

Morrisania

Inc., Long

Farmlea

Milk

Co.

Co.

Island

Dairy

Inc.,

Inc.,

Wright

terially.

There

shares

common

of

were

Management is well regarded

knowledgeable

gressive.

mainly

and

Executive officers

brought

in

from

as

ag¬

were

the

ac¬
con-

be construed
any

as an

offer

security referred

to

to

sell,

or

herein.)

Range

on

Over

5,500 Stocks
The Monday Issue of the Commercial

and

Financial Chronicle

contains the price
range on

than 5,500 stocks traded

exchanges

and

in

the

more

on

the

Over-the-

Counter Market.

Other features

include

the

most

comprehensive

chester

record

of

dividend

Bros. Inc., Kudile Bros., Hasbrouck

ments,

redemption

Heights

•inking

fund

Public

Inc.,

Dairy

Due
well

Milk

Co.

Inc.,

Co.,

Gannon

Dairy Inc.

to

constant

organized

emphasis

and

Emphasis is

sification constantly.

a

soft

well

di¬

In

are

addition

wholesalers,
in

cheese,

product,

tions.

The

to

volume

In

York
1960

place"

a

home

is

to

arid

National

and

made

stores,
institu¬

Bureau
Incorporated

equipment

"in

successfully and profContinued

Services for 49 Years
46 Front
CHICAGO

on

Established 1913

Over-the-Counter Quotations

area.

machine for cleaning

of

Quotation

growing in the

Metropolitan

pieces
was

just

Other

vending machine dis¬

tributor is rapidly
New

the

schools,

restaurants,

ice

to follow.

distribution

increasing

Place, New York 7, N. Y.

Products

cheddar
newest

juices

25 Park

diver¬

on

announced, is orange juice.
fruit

FINANCIAL

CHRONICLE

skim milk, butter,

cream,

cheese,

and

notices.

The COMMERCIAL and

Re¬

announce¬

calls,

Division,

the Products Division is
versified.

on

modern

search and Development

1,608,960

stock

Year—1963

Inc., Tilly Foster Farms Inc., West¬

the

ma¬

Price

Carlstadt, N. J., Lake Grove and

owned

74th

1889—Our

Queens Village, Long Island..

The

improve this situation

CO., INC.

St., New York 6, N.Y.

N.

milk.

year

PRINTING

Fraser

Yonkers,

mixes, and powdered skim

A

APPEAL

They

cream

fiscal year end.

j

areas:

mitments exceeding $3 million at
1962

--Reliability//^^
^opeeu/?,v //

geographically

are

include

two of good earnings
could, of

t

Telephone: WOrth 4-3033

as

1962

Quality,

130 Cedar

era.

The distributing, processing, and

be¬

are

!v>xv<£

through
stores

and

and this marked the

ac¬

Adler

This is rather topheavy,
especially
as there were several other com¬

capable,

buy,

this

Cox~ackie, Brewster, White Plains,

(par $5)
outstanding at July 31, 1962.

that

the

an¬

and

kill, North Winfield, Walton, West

notes

ten

$4,000,000

Bronx,

they

five-year

of

purchased

earn¬

net

to

sales

were

about

July 31,

5%%

dis¬

purchased for $1,-

The

That would

right

of

milk

embody the following

$1.8 mil¬

liability.

wholesale

important

it presently looks.

current

course,

To

to

of

NEW
149

Telephone:

Y.,
Copiague, L. I., Herkimer, Manor-

guess

the properties as

Nov.

or

oxygen

offer

continuous

.

1963,

quired subsidiaries. Directors

solicitation of

a

and experience.

now

fall

July 31,

hope and

a

with

I.

large
as

a

had

in¬

In the 1964 year,

$1.6 million

as

a

as

is

to

of

Securities Co.9 Ltd•

estab¬

has

period

were

quisition

million, plus $1,619,000, maturing
within a year, which was carried

(di¬

circumstances

through

it

DAIWA

1932

Cream

the

consisted of funded debt of $4,386

earnings from it.

no

in

and

August, 1961, Roland's Dairy
and affiliates at Copiague,

Slate

is shooting at

Capitalization

"Independent" should obtain its
full share of this volume
and the

(This is under

So

the

included

in

1933 year.

the

on

well

plants

properly

ac¬

pendent Engineering performs

generally be adopted
and installed; this is a
big market
to supply and the
parent company
reasons

and

consolidation

presently constituted.

esti¬

use.

1962.

Texas

companies

and

company

lion

26,

ton

incorpo¬

Dairy Co., Inc.

stock

Jan. 2,

on

four

Oxygen,

tween

process must

also

Cryo¬

Oxygen division and Cali¬

1,

the

this

others.

is

an

putting the organization
that southwestern area. Ex¬

55 cents

mak¬

steel-making

process)

SECURITIES

Exchange

business

a

success

tributors

exhilarating'ef¬

ings of around $1 million

Cryogenics,

that about 400 steel

an

an

1962,

the company

rapidly rising demand

oxygen

being

I
ADDRESS-

well

offices

042,000.

stockholders

as

the

paid

was

March,

For

Another subsidiary,

as

oxygen

.

today!

COMPANY

Due to the

that
.

American

far

had

$3,200,000

mated

r

INVESTMENT

So

pany

rect

for

one

the

parent

to

and

nually,
was

distributing oxygen, ni¬ approximate $1 a share; a
more could be
expected if
acetylene, argon, and a

done.

Milk

background

retail

paid.

1962

year

concerned,

into the

in the U. S. do not
yet have oxy¬
gen installations.
It is calculated

For Full Information and

FREE

stock dividend

Independent Engineering Co.,
designs and builds new plants for

for

$808

York

businesses

In

July

the

INDEXED and BRIEFED WEEKLY
in the complete, concise

of

also

$14,508

creased production 216%

equipment, acet¬
ylene, "hydrogen, and other cylin¬
ders, in which an export business

leading business
financial publications

our' branch

Inc.

1889.

During
the

Inc.,

fornia

and dental
gases,

Plus—over 140

to

JAPANESE

City
Stock

York

succeeding

in

long

154

Marks

construction unit. Subsidiaries and
divisions make and sell medical

REPORTS

Taxes

quired,

encounter

Its main business is

lished

226

into

in

111/4-123/4, April

as

5,641

there

field may be American

the

4,388

New

are

interesting situation in

in

1958__

In

suppliers

have

Inc.,

subsidiary,

1959

fect; it

of

Un¬

already

newer

in

Co.,

558

dividend

found.

,

Neiv

Middletown

as

350

genics.

industries where competing

larger

wires

former presi¬

a

Neiv York

9,852

were

usual

Direct

WILLIAM L. DEWART "

Members

6,622

eventful

from

come

a

Analyst, John Muir & Co.,

L.

proc¬

laboratories

de¬

Sales

,

Calendar

cryogenics

may,

the

record

July 31:

*1.00%

to

years

heat

The

has been good

years

1960-_-„

rough going.
This is not
necessarily true, however, because

CO 7-1200

firm,

Rockefeller

own

not.

expand

1961

to it in 1850-1960.
as

to

1962*—

the

be

is

use

must still be

cryogenics will

and

Building

LO 8-0900

•

Net After

development by some
leading chemical, electrical,

various

Broadway

to

'

Altogether, it
new
science, the

sense,

La. - Birmingham. Ala.
Mobile, Ala.

Southern Bell Telephone.

growth,

Yr. End.

are excellent conduc¬

Someone

been

new

quite
111

of

cry¬

today's

company's

company's

doubtedly, various breakthroughs pansions
in

New York 6, N. Y.

banking

Brothers, Inc; and
dent

—(000's Omitted)—

steel, telephone, food and mis¬

of

Philadelphia 3, Pa.

its

6, N. Y.

212 571-1425

New Orleans,

com¬

follows:

electricity.

that

our

Established 1914

Rittenhouse Square

in

be

sile companies for
years now.

BOENNING & CO.

the

correspondingly.

past five

with magnetism.

electronics

most

i

to

appears

The

expected

mand

at

ceases

under

and

Melikian, Inc.

adviser"

Established

for

also, into

though the

strange changes in sub¬

the

have

Richardson Co.

later.

account

enter

The

that

in

and

Keyes Fibre Co.

the

cryonics applications of the future

the belief that

activity

commercial

Be

i.

on

relatively

a

it

Carpenter & Co., Inc.

in

of

financial

was

esses were

L. E.

not, as yet,

role

members

State

world

*

that

Members New York Stock
Exchange
Members American Stock Exchange

presidents of other companies, two

New

a

ter,

learned.

Continuing Interest in

little

a

ogenics

trifle less than minus 460 degrees
Fahrenheit. This is still a conven¬

what

A

.

•

Steiner, Rouse & Co!
HAnover 2-0700

sist of six company officials, two

rated

corresponds to

2)

19 Rector St., New York

Foods, Inc.

a

securities

ag¬

pany's profits; that is because

con¬

absence.

applicability of much of which, in

solicitation lor

or

Deltown Foods,

mally inert,

Telephone: BOwling Green 9-2895

(Page

Deltown

tors

61 Broadway, New York 6, N.Y.

offer

made

noted

important

still

uses

stances. Steel becomes very brittle.
Lead
and
other
metals,
nor¬

our

Co., New York City.

liquid gases is cryonic in charac¬

of cold

zero

Intense

The Nomura Securities Co., Ltd,

an

how to
such

Dewart, Analyst, John Muir &

products.

is

not

assume

be stated that the theoreti¬

close association

other reportg
give you a pretty clear
picture of the Japanese
economy as a whole.

is

maintain

-

•

company's prospects that they will

its
and

that point.

that

This

and

and

been

play

it infers also the

heat

&

considerably.

means

and

Bought—Sold—Quoted

L.

equipment

items

inade¬

the

City.

Foods, Inc.—William

business of making and supplying

It
our

of

cold

have

York

"

it may
cal

IN JAPAN
for

expand
other

external cryogenics do

substances

Service

Opportunities Unlimited

Digest, and

other

will

New
.

For the benefit of those interested

all

Write

and

"Cryogenics"

behavior;

trive

•
Chicago
•
Los Angeles
Philadelphia
•
San Francisco

Wire

also

plus

and

gases

-

But that is

outdated

on

absence

Boston

Wide

This,

It

Deltown

of oxy¬

use

apparently purchased and resold, in the
gregate is Big Business. <

derived

today the science of
effects

60 Broad St., New York 4
Telephone: 363-2000
Teletype: 212-571 — 1231,32,33,34

World

medical

Inc.—Geo.

Bartlett, Partner, Thomson &

(Page 2)

expansion. Hospital demand

should

more

something to be

ice and salt."

as

hopelessly

Established 1920

Stock

for

Cryogenics,

McKinnon,

helium promises vig¬

argon,

orous

most people.

definitions in

quate today.
CORPORATION

Associate

gen,

get into the older dic¬

and

desired.

not

from "Cryogen: Any freezing mix¬

NEW YORK

American

by

recent ones leave

HANSEATIC."

"Call

understood

is

Alabama &

Selections

■

Cryo¬

now uses.

genics for Government
that

word

a

L.

require double the quan¬

tity of nitrogen it

Cryogenics

Cryogenics is

will

it

City

broad range of

a

The chemical industry believes
that, in the next six years or so,

Partner, Thomson & McKinnon,

service and

Thursday, May 2, 1963

Louisiana Securities

American

department offers

.

Participants and

Their

for favoring a particular security.

reasons

.

This Week's

Forum

A continuous forum in which, each week, a different
group of experts
in the investment and advisory field from ail sections of the

country

Oar experienced

.

page

8

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

Volume 197

Number

6260

>

The Commercial and Financial Chronicle

.

.

(1795)

A Favorable Outlook for
""

'

J

3

CONTENTS

'

*

j

•

•

Thursday, May 2, 1963

New Machinery Orders
By Frank J. Nunlist,*

B.S.
AND

President,

Worthington

Corporation,

Articles and News

Harrison, TV. J,

We have the
PAGE

Analysis of the outlook for non-electrical machinery projects a 5%
to 7% increase in this
year's orders over last year's level.
Lying
._J behind this prediction, and subject to candid assessment, are such-

-

determining
^

'

-

"

industry

:

factors—all

is

and

of

is " not

which

favorable—as:

are

operating

below

their

r

-

preferred

rate

STICKIEST

Restoratives to Cure Our Foreign and Domestic
Economic Shortfalls
Alfred Hayes
A Favorable Outlook for
New

(1). where

PORTFOLIO

'."J;->:

prated research spending of 1956^-59

r.
-

-

now

inducing

(3)

Orders

Frank

of
Ralston Purina

accel-

machinery

new

-

purchases; and (4) scrappage and replacement rate.Compositional
breakdown made of the machinery market
puts Construction machin-

■

8%

ery
V

tries

^
,r

.

^

.

J.

10%£ higher for each.

Winds Out of Africa

Nunlist

Yield and

for

dustry

have

indoor

sport

The

concern

the

machinery

become

in

in-

been

the

popular

stimulate

recent

months,

market.

the

There are, however, some

Incidentally, I
subject to

my

chinery and by

Kennedy

overlap into such

and

Walter

hold

the

to

like

classed

leaders

in

The

of

ing

such

is

J.

Howard

its

to

up

a

duction

when

dustry today,

program
is
uncertain;
profit margins of the indus-

to

decline;

when

be too early to appraise the

real

effect

ciation

the

of

schedules
tax

revised
and

credit,

and

invest¬

when

other

industries

their

preferred

look

almost

is

hazardous

as

betting in the winter book
Kentucky

Derby.

surprised

to

oddsmakers
outcome

I

find

taking
this

of

Las

bets

business

ar 5

Paper

very

the

create

basic

demand

&

.

^

for

*s

86%

95% 1

95%
90%;f.

91%

86%"'.

87%

94%

92%

93%

be

change

no

in

me

the

anticipated that the

.

Let

that
not

me

the

at

outset

providing

.

out

point

a

machinery industry is
homogeneous and simple in¬

Even in

construction

_t_•

and

a_-i_

.

mining

•

t

and

Financial

Analysts Expect Record Convention

•

turbines,

farm

growth

is

at

Harm

Caused by

Treasury Bond Ceiling
IBA

_v.

machinery.
factors

special

J.F.Reilly&Co.,Inc.
NEW YORK
Direct

As We See It_

(Editorial)

Bank and Insurance

Stocks:

.

Note

that

responsible for

for office

machinery

the

basic

a

demand

indicate

Coming Events in the Investment Field

Investment

Recommendations--—

Britain"

may

be quite

rise,

8

and You

.

38

(The)

17

Mutual Funds

Reporter

i__

Governments——

Electronic

Int'l

Ref.

Cap. Ltd.

24
4

23

—

Securities

20
1

Singer; Bean

Mackie, Inc.

s.

HA 2-9000

32

40

2

24

State of Trade and Industry

Bond

(The)——-

Exchange Place, N. Y.

Teletype 212 571-0610

34

:

Security Salesman's Corner.

Tax-Exempt

Corp.

Commonwealth Oil

19

on

Utility

Great America

17

Indications of Current Business
Activity
.

Los Angeles

—-

Franklin Life Ins.

11

From Washington Ahead of the News

.

Chicago

40

,

Einzig: "Concessions to Labor Unproductive in

Market

—

25

Dealer-Broker

1

Chicago

JVires

Cleveland

Philadelphia
St Louis

14

Market

to

Los Angeles

San Francisco

Washington

6

Washington and You—„_—...

that

The

COMMERCIAL and

Published

Twice

———_

to

Park

Place,

CLAUDE

D.

FINANCIAL

Weekly

Reg.

WILLIAM B.

cr

pUip an^ other similar items
tinues to

New York

18

Commentary

DANA

New York

40

7. N.

we

con-

have reached

Continued

on

page

a

27

CHRONICLE

U.

S.

Patent

Office

COMPANY, PUBLISHER
Y.

REctor

2-9570

to

9576

Yardney

SEIBERT, President
WILLIAM

fP"a
ft ^ ^fordemand
f°J
food and beverages,
paper and

.

1

CHICAGO

•

Connecting Wires:

categories, closer

will

below capacity while others have

industrial

38

■—

Regular Features

DANA

Electric

SEIBERT, Treasurer
GEORGE

and

24

;

Municipal Conference Details

the

chinery
and
equipment,
office reached their preferred capacity
machinery, general industrial ma- right now.-If, then, the basic per

chinery

23

4*4%

"*-

'

nrp

ma-

Cites

Direct

some parts of each of these inHiictri^c
etill
onnra+in
dustries
are
still
operating n70ll
well

ma-

chinery, metalworking machinery,
engines

these

examination

dustry; It includes such categories
as

their

rates predicted

the

UNITED NUCLEAR
21

paper

be operating at rates above their
preferred rates by the end.pf 1963

basic

incoming order rates.
v'

VITRO CORP.

Security I Like Best (The)_

and refining, and miscellaneous
manufacturing industries will all

to

seems

(A & B)

18

William Jackman

Prospective Security Offerings

94%

this is the starting point, for unless a real demand exists there

It

ATLAS CREDIT CORP.

16

Legislative Proposals Inimical to Investors

Securities Now in Registration

and PulP> the rubber, petroleum

can

Spring Look Makes Long Island Glow,
Says Franklin National Bank Study

Public

'

.

.

OIL

A Bright

Our

that

machinery.

on Consolidated Tax Returns Is
Anachronistic
D. H. Larmee

97%

Ref.

;

.1

COMMONWEALTH

15

Observations

95%

Bever.

*

12 bw

Remove Silver Certificates From Our
Monetary
System!
William McC. Martin, Jr.

News About Banks and Bankers

Pulp

Miscellaneous

pf the fundamentals

a

Oper. Rate

91%

Textiles

uncer-

tainties I should like, therefore, to
some

Anticipated

o

J—___

PRODUCTS

.J:

Klaman

—

Petroleum

these

of

•

&

Rubber

Food

Because

are set forth:

1963

m

Autos Trucks &

future.

near

prelimi¬

Rate

be

the

spending,'

Industry
A

the

in

below

In

of

capital

as

Vegas
on

outline

for

while

far

are

Preferred

of the

wouldn't

the

rates

levels.

following figures

pears to be headed for

continuing
Forecasting such an out¬

plans

nary

ap-

turmoil.

in-

some industries are

McGraw-Hill

the

labor-management atmosphere

American

operating

depre¬

the

overall in

°Pe^atmg
. 9t or nearer
to their
preferred

it

may

not

is

capacity

continue

is

It

YORK

4-6551

MARADEL

this question in

answer

is

re¬

B.

ma¬

btroad
generalities
because while
it
true
that
there
excess-

possibility and the nature of the
Administration's proposed tax

ques¬

the

capacity.

Frank J. Nunlist

enough to

not

or

10

is being employed

use

full

basic

Craven

12

Operations

these

of

whether

chinery in

a

at

time when the

that

and

technically

Capacity

first

tions

mak¬

forecast

explore

are

electric machinery.

as

is

risk

very

electronics

which

9

Quality in Today's Mortgage Market

Hans Ileinemann

considerable

ment

ma¬

house¬

as

NEW

WHitehall

2% Penalty

coun¬

There

try

areas

Marcus

Economy Face World

to Rise 7% Above 1962's
Outlay, According to McGraw-Hill Survey—

doing, minimize

so

appliances,

the

Extent

try.
a

areas.

STREET,

"Telephone:

Business Investing

going to limit

am

dent

our

common

non-electrical

from Presi¬

of

are

stimulants in all of these

pressed by al¬

Heller

that

machinery

ex¬

most everyone

labor

factors

farm

basic conditions that

investment
has

than

a

the need to spur

over

different

WALL

Manufacturing

Saul

Forecasts

99

Clarence B. Randell

Competition?

investment .is said to be such that even an improvement of 40%
i. to 50% is considered insufficient to provide
adequate profits.

Cobleigh

Edward and Mildred

Can the American

The existing low level of return "on

Street

Obsolete Securities Dept.

_Ira U.

Exports

and machine tool and office machine indus- ;

over year-ago,

Co

IIow Canada Can Increase

Wall

in

Machinery

"

rjoperations; (2) investments to improve profit margins;

COMPANY

J.

MORRISSEY,

Editor

Thursday, May 2, 1963
Every Thursday (general news and
Monday
(complete
statistical
issue
corporation news, bank clearings,
Office:

135 South La Salle

advertising
—

state

issue)

and

market

quotation

and

news,

city

every

records,

etc.).

Other

St., Chicago 3, 111. (Phone STate 2-0613).

Copyright 1963 by William B.

Dana

Company

All rights reserved.

have

specialized in

Reproduction in whole or in part
permission is strictly prohibited.

without ..written

For many years we

Second

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4

The

(1796)

-

OBSERVATIONS...

"Research

God"

elements,

(including

hot

and

originates, with
"researches"

who

securities

faith."

individuals

Such

the

of

case

...

both

The

Thursday, May 2, 1963

.

$1,000 to $29,443 IN TWO YEARS

investment

and

advisers — ranging from "minor
league" scalping to broader areas
"which go to the question of good

tips)

analyst

the

particular

industries.

or

cold

in

broker-dealers

In most firms investment advice

MAY

WILFRED

A.

BY

That

Commercial and Financial Chronicle

Study,

for

example,

WITH

FOUR

and

I describing the pur¬

of Chapter
and

the

the

of

nature

general

position

recommendations-arrived

dations

at, also

which

giving data highlighting, the enor¬

article

growth

postwar

mous

curities

will

with

of persons and 'business.enL:

titles

engaged,

with.

thev.'secyritie$

in

secondary

and

tions to the public,

emphasis

Chapter

IX

with particular

reviewing

-

and

issues;

new

on

distribu¬

legal

the

requirements and standards in re¬
"insider"

and

of

chapters

Staffs

the

of

the

V,

VI, VII

Chapters

(May).

month

and VIII will
the

explore

functions,

and problems of

structure,

kets in which securities

Stock

York

Chapter X
XI

mar¬

traded

are

distribution, including

their
New

and

exten¬

with

Exchange;
credit

securities

margin requirements; Chapter

with certain aspects

funds

which

covered

have

been

neither

School
the continuing Inquiries
the

by

Study nor

of the SEC's
porate

of mutual

Wharton

Division of Cor¬

own

Regulation;

Chapter

XJ1

(National

Securities

of

XIII

,:

In

break

of

May,

Chapter

stock

1962;

market

finally

and

of Chapter XIV which is reserved

for left-over general topics.

On

investment

whether

advisory

by

activities

government

as

—

self-

or

The

and

plethora

variety

of

written

information"

the

of

"in¬

and

"ad¬

vice" furnished by broker-dealers

free

their

to

existing

customers,

part of their

as

Lynch, Pierce,

Fenner

&

Smith during last September had
a

regular circulation to its clients

of

200,000 for its fortnightly

over

magazine, Investor's Reader. e. F.
Hutton has an average
of

its

circulation

monthly Market and

Survey of

ness

Shearson,

variety

distributes

Hammill

publications

of

Busi¬

67,000 copies.

over

that

a

in¬

clude its monthly Research Bulle¬
tin

with

about

above-cited

circulation

regular

a

Walston

85,000.

of
Co.

&

prints 437,000 copies of its

daily

According to estimates
New

York

number
ters

Interstate

Commerce

and

Foreign

Committee,

Stock

different

of

distributed

firms

has

since

stage,

the

market

its

by

the.

1955

Bull

to

over

as

major

a

whipper-up of the public's

specu¬

frenzy.

growth

in

Chairman materials

this

the

extraordinary

volume

distributed

of

an

Harris

formally

requested

indication of the Commission's

dealers

tions.

conclusions

lishing

ters.
a

and recommendations

forth in those first five, chap¬
This

was

detailed

complied

been

of

number

position with respect to the Staffs
set

has

by

the

subscription

These

include

data

And

for

houses

with

.

pub¬

numerous

search:
terial

to

reach

of

the

with

the

"Common

of

to

him)

public's
term

scription

publishers

alike

is

expressed

recommendations

but

with

one

of

these

in firms having only one publication,
from with an 80,000 circulation.

FINANCIAL HIGHLIGHTS

publishers

employees

or

know

broker-

of

pend-

a

ing recommendation and buy the
stock

are

before

then

sell

it

is

after

the

market

price

has felt its impact.

the

of

re-

their

lowed,

in

and

reveals

the

the

practices

adequacy

fol-

of

confined

le-

seaich staffs to perform the func-

tions

they

perform,
broad

as

the

and

to

on

the

,,

and

As

highest

general

a

quality

,

the

large

and

directed

are

at

substantial
most

customers,

casual

directed

to

submitted

and

efforts

are

generally

review

of

portfolios

in

to

response

"Reliance

[through]
tion

outside

on

services

recommendation.

a

short-term

mere

'

abuse

occurs

the occasional

by

:

-

names

the

whose
by

or

others,

or

abdication of

stock

"come-on"

been

copiously

investment

Study,

as

an

examples

magazine,
has
of

this

by

usual

eclectic

in

news-

the

advisers.

P

Invest-

make

effective

governmental

ministration

of

alone

would
ad-

regulation

cuit.

..

The New York Stock

exerting

Exchange

direct and prompt

a

with

its

con-

members, has made

successive efforts to forestall advisory abuses

principle
good

taste."

with the

—

of

guiding

'•truthfulness
It

has

and

column,

subscription

demonstrating

Market

-

1,

1963

initiated

stimulating

its

its

responsible for advertising, market letters and sales literature
according / to

aimed,

FUnst0n,

at

President

providing

"a

understanding of the

'rules
jng

and

and

standards

market

better

Exchange's

for

advertis-

letters"

^
The
Exchange ,itself has
ti
,,
rules can
siQfoj

realistically stated that

tak<? the Place Osgood
judgmentr in the preparation of

never

sales

market

letters

literature/Under

cumstances

what

be

important

just

as

is

and

cir-

some

left

out

as

may

what

"...

Agreeing

with

the

by the Exchange

pub-

resuits

"in

further
of

its

self-doubt

the

Study

review

oaipt,

review

siderfbly

aS"

the

program
lette° ^

literature

"

Rewrt

goes

criticising

„The Exchange markei

"sensa-

nrnenm"

"falb

not purport to

analysis

to

make any detailed

support
It

£d
,

terms

but

of

PER SHARE)

.
.

up
CORPORATE

FINANCIAL

adverse

THREE

con-

FORE

un-

or

crtn?irir'

THREE

~

u

i

are

few,

and

deliberately

•

to

for

to

have

the

i

,

*

the

FOR£

purchase;

BOOM

COM-

than'

what

STOCKS
APRIL

TO

BUY

-m

orrv

BE-

14

oTvrr-i^o

STOCKS

Cour9ges its members to advertise
the

TO

BUY

1

or

BE-

nualitv
•

of

+

u

services,

but

determine

their
7

makes

research
«

no

whether MAY
the

effort

of

the

generally

a

projection,

times involves

in

12, OHIO
.

NORWOOD VIEW BUILDING & LOAN CO.
DEMPSEY & SIDERS INSURANCE
AGENCY
UNITED LIBERTY LIFE INSURANCE
COMPANY
ATHENS NATIONAL BANK

earnings

excess

pleased to

that

announce

an

an

John butler

"is

which

has become associated with

estimate

which

some¬

Bank

outright predic¬

of

the

little

concerning

present

and

Insurance

in

us

the

extent*,

is

Department

responsible for the

,

or

recom¬

mendation."

'

Laird, Bissell & Meeds
Members New York and American Stock

120

Exchanges

Broadway, New York 5, N. Y.

■

Conflict-of-Intere t

FINANCIAL LEASING COMPANY

COPY OF ANNUAL REPORT AVAILABLE
ON REQUEST

Full

the

our

market.

information

irethod of research and about the
person

are

future market price well

Ordinarily
given

We

recommenda¬

continues,

34o/0 to $46,823,71 1

a

part

prospects

considerat'on

Study

to

ii

Abuses

given

Telephone 212 BArclay 7-3500
by

Coafllqt-ef-Interesl

%

+•

to

research

changed.

core

it

4nXxEfactively
^T?SYAD
en!

with

previously

whose

Report

tion of

even

securities

tion," .the

future

most

avoided,

of

HUNTER SAVINGS ASSOCIATION
LOVELAND MUTUAL BUILDING Cr LOAN

"

any

Overwhelmingly

often is in the form of

HOME SAVINGS ASSOCIATION*

DIVISION

MARKET

ING IN NEXT 30

invest-

data

25o/o to $42,742,279

SUBSIDIARIES

STOCK

recom-

of

omits

42% to $58,069,781

OFFICES

3955 MONTGOMERY ROAD, CINCINNATI

the

™lustration raises senous pioble™s- Wbat *he Program fails to

generally classifies

securities in

goals,

STOCK
MARKET
CRISIS
WITHIN NEXT 30 DAYS

does

i"

«o

of'vigorous

short

aggreSsive self-regulation. Its ad®
•

.

bullishness:

[most of the material]

is

included."

much

ap-

of

staff and member firm executives

gives

Bull

series

a

monthly conferences between its

so-

The

"sher
advertising and solicitation
material

Tins

Exchange

the

Act

advertising,
has

as

demonstrated

called

and

un-

such

is,

printed advisory material by the tional
and
even
frenzied
Special Study is its superficiality, proach," as follows:
its

of

eventual

sharing

paper

Another major fault ascribed to

and

are

eventual

instigation

is

Bull

to

this space, the advertising,

responsibility."
of

leading

lamhs

advertising

represents

Predominance

and

Importantly

under

of material pre-

company

recommended,

booms,

>

pared by Public Relations counsel
of

adviser

an

^^ftfiailhte^
Ild
L-

.

circula-

broker-dealers

own

.

.

important

as

cnnhNtimteH

for

sources

also

under

Advisers

then^acttviUes
in wMppng^up
excitement,
tanning

market

•

1861

ment

speculative

news-

broker-deal-

Feb.

the

abuse, in its broad sense, as
the lasting damaging effects

the

and

the

determines

s*s *s not

and

advertisments
auvei
usmeius.

research

their

institutions

5 868

of

with

under the Securities

Act

of

"torrent"

its

In any event, we believe, the
entire conflict-of-interest empha-

the

population

the

on

'speculative

efforts

un-

formal rules continually; and

instances

pro-

policy

research

...

indefinable

tightened

those

to

^

,fessed.

quite

.on

where the "chiseling" opportunity

of

practices

standards

its

This takes the practice beyond the

frequently

a

between

gap

fcllowed

called

see

well

as

reprehensible

course

,

.

particu-

product registered

tact

view, while such chisel-

our

rendered
'

—

-.p..

advisers

publicized, and

^ *deImpact

"The

81% to $1,347,775

(EQUIVALENT TO $2.01




advisers.

embraces

wide

category

variations

1962

up

A

investment

jog jg of

may

AMERICAN

"scalp-

firms

each

respect

AMERICAN

of

in

recommended

AMERICAN

,

standards?

seaich piactices followed by

are

-

area

specific

practice

either, who

.

......

rWhat.
possibil.ty of regula
this

recommendations to sell securities

CORPORATION

LOANS

the

implied,

or

The Stuoy s survey

certainties

FINANCIAL

MORTGAGE

dealers,
of

the product of research.

recommendations

...

Regulation Potential
■
;
:

.

Both

practice

difficulties,

^

products;

AMERICAN

up

ma-

that

....

up

This

sub-

suggestion,
their

registered

re-

printed

broker-dealers and

sideration

SAVINGS

The
,xr,

Commission

ment

ASSETS

regulatory

we have cited previously,
* again be discussed below.)

ers

made

be

exploitation

the

SHARE

the

to

18-MONTH

Iarly alfflcult because of lts

The Study devotes considerable
space

SELLING

WITH

100%

(The

,

t00-.

BULL

SPECIALTY

NOW

$30

evidence among both brokers and

could

broker-

publica¬

TO

in

-

LITTLE

PROFIT OBJECTIVES OF 30%

the

A Prevalent "Chisel"

.

aptly comments (for

mendations.

EARNINGS PER

but

in¬

lnvestor

UNDER

sin-

of such disclosure is, in-

absence

STOCKS,

it
on

swelling

with

communication

it);

THE

IN

a

deed, indefensible.

pictorializa-.
.

..

the

011

and

selling

large

in

OF

MARKET"

money

indicates his

confidence

cere

up-to-date.

.

Oren

security

own

CREST

"HIDDEN

defensible

is

his

THE

ing," of which it reports it found

firms

Paralleling

of

SLEEPERS

GAINS

PUBLICIZED

broker

or

AWAKENING

the benefit of the investor if only

let¬

member

doubled

functioning

lative

issues.

easier

The Study

by the

Exchange,

fiscal

amass

.

ls

paper
paptr

first segment of the Report to the
House

to

dividual

impressively

is

spelled out by the Special Study.
Merrill

picture-making

beguilement

extent

issue

risking

in the

dealer

a

-

needed to keep the chart

are

policing. 1

Market

April 5 last, two days after

submission of the

(the

the

as

of

long-term position in

a

•

largely responsible for the diffi¬
culty
involved
in
regulating

60,000,
the

since,

economy;

..

factors

qualitative

as

fact

recommended

Study points out, fewer employees

than

ohYview, the quantitative

Weir

Association

Dealers);

analyzing the

of the

use

-

appraising the self-regulatory ef¬ market
letter, larded with "tech¬
stock exchanges and nical" beat-the-market
aspects.
NASD

firm's

a

variety of star-gazing

constitutes

1

*

.

fort of the
the

Incidentally,

other

Report will be delivered in their ahd prospective,
entirely to Congress at the end selling
activities,

the

"

Tlitfse1 Incorrigible Advisers

current

trading.

expected that the remain¬

nine

after

'

'

*

vestment

sively

there¬

The

having

:

"technical"

are

solicita¬

spect of reporting, proxy

It is

following

indicated

be

"

,

business; Chapter IV dealing with

primary

ing

items

market

as

"

the ue brdad

.

range

tion

the

in

known

analysts.

recommen¬

respective

cover

Re¬

industry; Chapters II and

concerned

III

the se¬

in

the

on
we

Staff

the

on

Report port's conclusions and

and methods of the

poses

sion's

being,

SCIENCE

THREE MORE STOCKS TO RIDE

value

corporate

on

NEW

FOR LARGE

dies the usual absence of indicafactors
are
known
as
security tion of any interest in or intenThe Fourth Article In a Series On
analysts, with the Fundamental tions by the adequate commenting
THE SPECIAL STUDY OF SECURITIES MARKETS
approach; the technicians fasten- firm in the security it discusses
ing their sights on interpretation
at most carrying a vague, but
The
first segment, namely five Chairman Cary on behalf of the
—often with charts, extending to legalizing notation that it "may"
chapters, of the Special Study's Commission and released at this
the
point-and-figure variety for bave a holding of the issue or
Report, filed with Congress by the writing (Tuesday, April 30).
detecting the performance Trend, "may" be dealing in it.
SEC on April 3 last, is comprised
Accordingly, the full Commis¬
concentrating

FLUX

IN

REGULATION

ONE

STOCK

Volume

facilities

of

197

Number

firm

any

mensurate with its

are

The Commercial and Financial

.

efficacy

practical

com¬

claims."

proaches,

for

promotional

NASD

Policy Over-the-Counter

Like

the

Stock

Exchange,

render

the

^Dealers ./(NASD,

far-flung

market

under

unlike

its

'

Statement
which-

the

SEC's

lengthy
of

it

self-regulating

•

ployment

-Policy

A

liability,

also

:of

the

and ' the

aforemen-

Mutual- tioned "inflexibility.—
1
i of
With, our
doubts
about

through

"a

The.; Association's effectiveness
under its

deep
the'

rule

examined

•'

selling
the

by

litera¬

that The NASD rule

has

had-

the industry.

To

impact

imposition

restraints

of

days.

-

Commission's Position

Full

it

extent
tive

reflects

to

some

/

'

dations

a

its

"The NASD makesTittle, if any,
effort

to

which

it

its

evaluate

inspects

the

Nor

effort

general

any

materials

to

is

such

determine

No

doubt

the

Special

directorate / would

permanent

difficulty

of

effective // regulation
source

mission

over

this

it

the

any

of

Firms

nor

On

The

Stock

NASD

Exchange, depend

Federal

the

the

by

Government

for

the

the

advent

ganization;

of

with

of

tightening-up

or

the

civil

of

.

in

to their

own

its

in

House

ourselves

cus¬

relying thereon

full

v

Commission

"has formally approved

the

these

pro¬

communication

Committee,

to

find

we

highly skeptical of the
(May

1)

for Over-the-Counter securities of obscure

companies
lished

about which

information

is

little

or

no

Ralston

breakfast,

own

>

protein-building -feeds
beefs

Purina

well

a

and

poultry,

products

in

are

known

symbol to both

the

to

materia I

first time

efficiently
major

international
vision
mal

Purina

meat

or

for

,

business

are

markets.

divisionS)
.g

in

pounds

more

per

This

ac-

about

division

70%

total

of

Coordinating the efforts of

..

and-

self-regula¬

letter

up

oh

and

surveillance

discouraging discrimi¬

advertising

of

and

research

increase

_

.

practices
the

of

Purina

proprietary

this

farms

.

able

sales

ouite

pantivp

"frenzied"

their

wares,

provides
for

reform.

cooperate,

most

urgent

sector

The journals will

as

of

typified /above,

as

the

advertising

not

demonstrated by our

otherwise most responsible

news¬

supplements,
market

The Federal Trade Commission,

as

it

in

does

the.

case

of

things

That

pick

administrative

Commission
up

where

pub¬

the

Continued

available.

restraint.

could

at

SEC's
on

least

rules

page

39

bv

provided

is

'

.

.■

.

soybean Division both sup-

big market

a

all

also

are

suonlements
supplements

and
is

search

processed

in
in

the

as

hamnam

souns
soups,

spaghetti;

and

constantly finding

Best known

is

soybeans.

re-

new

for this versatile bean.

uses

reached

,

livestock

center"

The

than

v

.

Division

1962

7

foods.

Ralston
leader

the

now

dog out of
out

of

a

Ralston

Dog

and

fourfold;

and

eats

division

Ralston.

should

of

quarter

fiscal year a 15% in net (over the
1962 quarter)

was

reported.

eration of manufacturing in Latin

Ralston Purina Common

America in 1956- and now has
plants in Venezuela,/ Colombia

The

of Ralston Purina,

common
,

,

outstanding in the amount of 13,planned for Argentina. Ralston 268,388 shares, is preceded by
methods of modern feeding , are only $22,542,Q00 of long term debt,
bringing to Latin America lower Against a/high of 45, reached in
costs and improved- quality of both 1961 and 1962, current quopoultry products, the principal
at ,37 ls°nly 211/2 tlmes
source of proteins in this region.
1962 earnings. This appears as a
Mexico. / A

and

is

plant

new

-

'

T

'

r

\

pf

modest appraisal of an equity with

^

In Europe, Ralston has 50% such

partnership with important

growth poten-

lmpressive

tials. With 80%

com-

of the world still

?a"ies »n.France Germany and undernourished, the. skills and
"aly' a"d presently has seven products of tins Company m inone

(in Italy) under construction,

creasing protein production are in
urgent demand; and investors too,

jn

Australia,

may

last year a

Ralston

acquired

75% interest in Robert

Harper & Co., Ltd.,

a

find

financial meat in

some

sturdy

So

a

stock

as

RAL common,

leading food

manufacturing company,
International
.

.

Correction On the

Opportunities

..

,

'

-

•.

,

.

.

,

•

t

^

generally believed thafc -AtkH(>]p Oil
abr°ad' a»d especially m Europe
V^V^.
meat production has not advanced TrpT1Tii*tn<ltnl TW
as rapidly, as industrial;manu- JYennaHieiai HlC.
is

,

;ac'ur®- Consequently, Ralston
looks to overseas'- markets for

.

'

,

In

a

the

article

by

Dr. rIra

pleased to

announce<

it margins) in sale of its products.

Converter of Metal Into Money,"

rising

published

per

capRa

Hons

use

of protein foods,

incomes

expand,

and

indicates

as

a

feed

?

services

meat

of

all
V

?•

the

E

Rowland

Company
'

anima,

President of

April

,

•L

as

the former

Beryllium Corpora-

' ■
elements,
'

_

.

.

P

r

arate

Mr>

Rayinond

nloblum are identical, although

expects

the

.

.

.

..

.

launched in 1961 to create

ably in trade circles.

I

rl

/J

orderly market

OS.

@$un6tan

ucts,

to

and

in poultry

develop

I

was

a

I

I

more

prod¬

new

con¬

products from turkeys and

sumer

chickens.

This

division

is

fully

integrated carrying production all
.

has become associated with

and has been elected

a

us

the

way

and

hatchers, to feeding and fat¬

from

owned

breeders

tening; and the processing, pack¬
aging and marketing of eggs and
table

Director

of

our

firm

poultry. All of this

built-in

a

feeds,

for

market

advances

and

research

development of superior and
venient

saving
mated

The
is

a

ing




highly

and

con¬

cost
auto¬

facilities.
Grain

grain

grain

■iinRiiiiiiiiiiiniiiiiiiiiiiiHiiiiiiiiiiiiiiiiiitiiiiniiniiiiiiiiiiiiiiii;

feeds

products;

in

Marketing Division

large scale operation involv¬

offices

May 1,1963

poultry

storage

for

in

■

elevators

buying

principal

centers. This

assures

and

A sincere thank you...
to those who have

creates
Ralston

and

selling

commodity

effective, ef-

.

...

the names are used interchange-

Inter-

con¬

Division

y

Tj

and

Z.
President

i

11

o u

5

colum.bium

The

national Division to have sales of

iii

issue,

4

re.

stimulate
-«

production.

of

'

and

which

our

have been described

power-

Uptrend jp demand for Purina
search

in

Director Andrew Gahagan should

popula-

/:"'T

The

-

U.

The

ing acquisition of Van Camp Sea
Food.
are

.

Cobleigh on "Kennametal Inc.—

siderably expanded by the pend¬

We

For

4.
present

the

This

be

profits

net

grown over sevenfold.

is

one

three that eats

every

can,

Chow

almost

there

Period since

war

"

principally cereals, Ry Krisp and
pet

$1.67;

years,

which

handles all the grocery products—

share

all time high of

past

99

was

per

op-

to most Americans

Ralston

fiscal

the

the "first

-

commenced

company

(year ends
net

1945,. sales have increased more

ranch

beef

a

1955

share

per

17 year Post

dairy

45,7

pro-

of sales for the past 4

an

in

pathoio'gy laboratories! have

and animal

earnings.

in

four dividend increases,
Current rate is 80 cents. In the

farms owned by

r>oultrv

without

were

research

mink and trout farms; a rablpitry,

to American

from

comes

Soybeans
food
xooa

50% of

sloce over

protein meal fed

livestock

on

-

gains

For fiscal
For

these":and,

of

report

can

sales

operating income averaging

30)

cents.

rapid expansion (and higher prof-

plies and processes soybeans. This

ranging from books to pills, could
exercise

the

in

nrnvirieri

'

' V burgers

papers.

in

products

.

The

ranches.

and

ilia Ghows^

1 he

Program
"

profit-

and

effective and profit-

are

area

signifi-v,sept.
> v

with, all

broad-gauged

being done

Ralston

substantially

output

ability

Pur

Frenzied Advertising

The

sanitation

years.-

in

Puxina, however, has

for- about 8%

European plants in operation and

"

"

tech¬

/TTtx-T;

.:

;

connection

In

pre-

they produce

egg

of feed.

counts

coast-

come

and

ferred because of the
of

about

dealers,

Chows

varieties

600

Di-

animer-

through

independent

an

Chow

commercial

them

to-coast.

six

and

poultry feeds and

chandises

5,000

through

one/ The

produces

and

year), is

divisions

duced

International Division

$700 million for

operated

.Ralston

•

large

of- grains -required

^

this fiscal

domestic

pound
s,

source

research

the

cross

the

of

cant price movements in the grain

huge company (whose net

sales should

v

buying

constantly informed about

Divisional Operations
This

over

achieved.

advisory facilities."

T
★Today

Llewellyn P. Young,
Administrator of the New York Regional
Office
of
the
Securities
and
Exchange
Commission, issued a statement caution¬
ing broker-dealers not to accept without
close scrutiny published price quotations
;

,

or¬

detriment."

Although The

posals

of

in

way

relating

advisory

"'generally

control

favor

should

require disclosure of

market

alternative

SEC

item

statute, with subjection to

liability

tomers reasonably

/

an

the

be best

can

Exchanges

nate

such

the

•-

advisers

tory agencies in tightening

the

on

K

the observation that

information,

(D)

arrangement,

its hopes

pins

Study

possible

this

of

Corn

or

companies

increases

corresponding

\

volume

Impressive Growth

Many
good

-

level

same

business

current

the domestic division.

operations

Purina Chows; and keeps buyers

insecticides. Sound

regulation. On the finding of the

inadequacy

job.

niques, existing position in stocks ^ The Sanitary Products Division
has
enjoyed a 40° % increase in
recommended, and other matters.
sales in the past 10 years, and
(C) A proposal to curtail the
promotes animal health with its
exaggerated
claims
about
re¬
of
line
disinfectants,
wormers,
search.
/:■ ;•
.'■/:/. /"• '•/
treatments and

Advisory firms,

imposed

Staff:—

exploring

vestment

being neither subject to the selfcontrols

adds

An

would

4

The Investment

by

area

content of market leaders and in¬

far-flung /enor¬

The Advisory

recommen¬

this

investment

still

(B)

ehanges.*
.

is

•

industry sector, off-the-Ex-

mous

Study

which this

exerting

from "

in

regulatory association. The Com¬

Study's

grant

amounts

and

man

Wheat, Rice

cows,

cur¬

be organized into an official self-

letters

trading against advice."

as

four

than broker-dealers

ether

involve conflicts of interest,

may

Special

registered

there

whether -published market

other

advanced

in

feed for persons,

•

bipeds and quadrupeds.

(A) A legislative proposal, that

in the light of

"interpretation.'

for

communication approves the

largely ineffec¬ -following

enforcement.

for

Along with foregoing this, pro¬
rent

and

ficient

outstanding

your.

Purina

or

is

The

on

posal, tne Commission in its

rule,

for

-

producing and

Purina ^Company

an

Whether it's

v.

•

1
checkerboard imiovo"
square" trademark

nature

the

Ralston

.

KpL. o/ilrorhnbr/l

'

may be -due to the broad, general
of

of

feed

done

.

.

Chex

field

extent this

some

business

distributing
has

,

Purina chows for pooch or pussy;

Both legal

answer;

interpretation

significant

a

the

.

experience,-this medium also fails
provide the

international

and

providing food and

company

during the advisers' Bull Market

the Report, "does not suggest

says

?

recent

by

national

to

dustry

Study,"

*

•

In

the'Study's, and, ethical considerations have,
"The nature of seemingly blocked the intra-in-

broker-dealer

successful

pets, poultry and prime cattle.

self-

arouses

misgivings.

ture

buttressed;

regulation

broad and general rule."-/

very,

the

this substantial

.

beast,

regulation

advice

review; of

by the Commission, we

terprelation;

the

as

;•

em¬

_

brcker-dealer

or

The

,

5

Chow, in 1972, at the

Company

By Ira Cobleigh, Economist

regard as impracticable, mainly
detailed'. because of the. difficulty of inr

through

supervises

Funds—approaches

civil

rules,

statute

by

agency.

of

endorsed

would

aegis)—

and

\

imposed

(1797)

Ralston Purina

the

of

set

any

Chronicle

ap¬

of

machinations

administrative

"over-the-counter"

these

of

fluidity

abortive

whether

National Association of Securities

.the ;

\.

6260

depended

on

investment service—and to

Mullaney, Weils for

our

many

friends

within and without the securities business,
who have been

helpful to

us over

the last 25 years.

MULLANEY, WELLS & COMPANY
135 So. LaSalle Street

•

Chicago 3, 111. FR 2-1166

6

(1798)

The Commercial and
Financial Chronicle

being

Tax-Exempt Bond Market
BY

DONALD D.

reoffered

coast

by

We
this

MACKEY

state

market

and

has

shown

improvement
report
had

bottomed

out

announcement

that

managers

The

the

schedule

original^ terms.

heavy

of

early

state

new

mu¬

basis

improved

points),

investors
tions.

wholesale

market's

relatively brief period

a

ceptively

better.

stability
ket

end most

criteria

was

An

of

the

back

were

in

Chronicle's

state

and

municipal

as

cf

rise

of

between this

as

a

about

minimum

the

of

quick

was

taneity

but

little

usually

better

long-term

bond

level

and

obligations.

The

high in

the

bank

easily

be

ened

shambles

reduced

Treasury 4ys %

the

'

The

tentatively
tions

,

there

,

little;

a

strong

reestablished. The

MARKET ON

over,

there

in

parent

great

For

issues

$425,000,000.
large

no

3y2%

the

More¬

negoti¬

314%

2,90%

a

—

Cincinnati, °hiQ

(U.T.)
Pennsylvania

sheets
volume

part of in¬

and

perhaps

vicariously

Bid

associates

2.60%

a

bid,

Co.,

major

Bank

of

Bank

tric

revenue

Lehman

yield from

of

were

sale

3.00%

2.85%

associates.

2.75%

2.60%

Other

1981-1982

Co.,

3.15%

3.05%

Francis

1931

3.00%

2.90%

&

of

from

R.

to

net

the

at

3.247 %.

Of

a

The

success¬

Witter

Pressprich

du

Pont

&

Harkness

&

Co.,

NEW

&

Co.,

Inc.,

IVIerle-Smith, Stein

Bros.

2.90%

Dick

3.10%

&

3.20%

3.05%

Allison-Williams

3.06%

3.00%

&

Harold

co.

H.

Huston

&

Co,

& Co: and Black

;

Reoffered

to

to

and

coupon

On

t '

yield

3.30%

from

in

2.40%

1987

initial

for

RALEIGH

GREENSBORO
COLUMBIA

a

one-tenth

was

sold

at

of




GREENVILLE

Euclid, Ohio
University of North Carolina

JACKSONVILLE

:

-

3,000,000

1965-1968

1,429,000

1963-1987

2,500,000

1964-1978

3,130,000

1963-1974

1,250,000

1965-1978

10:00

a.m.

3:00p.m.
10:00

a.m.

7:30 p.m.
.

2:00 p.m.

15,330,000

1964-1996

1,149.000

1970-1993

1,440,000

1964-1983

1,075,000

' 1964-1992

Noon
8:00 p.m.

8:00 p.m.
Noon

1,055,000

1975-1990

10:00 a.m.

122,000,000

1967-1996

9:00 a.m.

1,550,000

1964-1993

10:00 a.m.

2,650,000

1963-1980

2:00p.m.

1.800,000

1963-1978

Noon

1,000,000

1965-2002

10:30 a.m.

6,000,000

1965-1983

10:00 a.m.

9,628,000

1964-1983

May 14 (Tuesday)

Delaware

(G. O.)

1,170,000

Oconomowoc, Etc., Jt. SD, #3, Wis.
Oxnard School
District, Calif
St. Bernard Sch. Dist. No.

1, La.

Tacoma, Wash.

Gainesville W & E
Revenue, Fla.
Massena, N. Y

Monmouth

County, N. J

New

State

York

Housing..

11:00 a.m.

1966

10:30

a.m.

6,600,000

1965-1992

3,900,000

1965-1983

7:30 p.m.

1,250,000 " 1964-1983

11:00 a.m.

1,300,000

1965-1988

4,780,000

1965-1983

10:00 a.m.

'

11:00 a.m.

10:00 a.m.

6,000,000
1,040.000

1964-1983

2,900.000

1964-1977

2,150,000

1966-1983

11:00

7,000,000

1966-1998

11:00 a.m.

1,370.000

1964-1993

2:00 p.m.

1.333,000

1964-1988

11:00,a.m.

49,000.000

1965-2013

8:00 p.m.
*

Hawaii

G.

O.

(Honolulu)-.

Livingston Co. Tp. HSD #90, 111
Ogden City, Utah

a.m.

10,000,000

1966-1983

2:00p.m.

1,726,000

1964-1979

8:00 p.m.

2,000,000

1966-1990

6:00 p.m.

1965-2002

10:00 a.m.

1964-1933

1:00 p.m.

1966-1993

10:00 a.m.

May 17 (Friday)
State

>

Board

of

Regents,

Kansas State University

Solon

8:00 p.m.

May 16 (Thursday)

r_;

1,170.000

May 20 (Monday)
Local

Sch.

Dist., Ohio

1,300,000

May 21 (Tuesday)
Cleveland, Ohio
DeKalb

Co.

Monroe,

La

W

13,150,000
&

S

Revenue, Ga.

5,000,000
6,000,000

Tennessee (Highway, Education &
Mental Health)

Toledo,

25,000.000

Ohio

11:00

a.m.

3,770,000

1%

May 22 (Wednesday)
Springfield S. D. No. R-12, Mo.___

Penn.

1,750,000

May 23 (Thursday)
State P.

S.

Bldg. Authority

-

4.25%

a

Friday there

were

no

flota¬

importance and

on

Mon¬

day

the

of

only
up

present

one

notable

week

there

new

offer¬

for sale, namely,

*(1964-1979)
Florida

Commission,
Bridge

Bay

bonds

23,500,000

',

»

(1965-1973)

bonds. The Florida
National Bank
group of banks was the success-

Continued

on

page

38

D.

Cal.

1,250.0001964-1992

'7:30p.m.

May 27 (Monday)
Kane, Cook &

Du

Page

Counties

:

V

Community Sch. Dist. #U46, 111.

2,400,000

-

"

;

—

„

May 28 (Tuesday)
Cherry Hill Sell. Dist., Mich
Columbia

S.

Dallas Indep.

C

1,600,000

1964-1992

7:30 p.m.

v

3,253,000

Sch.vDist., Texas—_

Houma, La.__

Houston,

'

May 29 (Wednesday)

and

Development
County .Road

revenue

Valley Center Mun. Water

$3,000,000

Fiorina Development
Commission,
Osceola County Road and

and

4:00 p.m.

orders

$1,100,000. The

tions of

$1,500,000
ATLANTA

1957-1988

May 24 (Friday)

revenue

Exchsnyo

10:00 a.m.

May 13 (Monday)

yield.

ing

YORK

Harrison County S.
Bldg. Rev., Ky.
Niagara Falls (G. O.), N. Y.______

Bache

Bridge

CHARLOTTE

Calif.—

&

Hill,

3.05%

1969

1964-1,988

interest

the

Dean

are

W.
I.

&

1:30 p.m.

2,500,000

1:30 p.m.

May 9 (Thursday)

Kansas

3.25%

COMPANY
I

District,

Wash. Public Pwr.
Supply System

Blyth & Co. and

members

Co.,

1964-1978

Vallejo Sanitary & Flood Control

1, Elec¬

syndicate

3.26%

a

syndicate

Co,

of

present balance in
syndicate totals
about $2,810,000.
The
1988 ma¬

T

Milledgeville, Ga

bonds

awarded

cost

bid,

1974-1975

ful

6,055,000

.

May 8 (Wednesday)
Gering School District, Neb
Holmdel Township S.
D., N. J

Augusta,

1.60%

$4,500,000 Clark

Brothers

came

3%%

A

other

(1969-1988)

interest

3

K

Trust

1964-1981

School

Cincinnati, Ohio

United

Commerce,

7:30 p.m.

-

1,250,000

.

Lafayette, La

and

of

Utah

District No. 501, Wash

Denver, Colo

Los

Public Utility District No.

was

0

Bellingham

Co.

Harris

(Vancouver), Washington

1981-1982

Common Stock

'

the

Angeles,
Kean, Taylor &

only

note consisted

County

2.95%

Members Midwest
Stock

Whatcom

S. D.,

Chicago Park Dist., Imp., Ill
of

10:00 a.m.

May 15 (Wednesday)
to

turity carried

•

There

include

coupons,
have amounted to

».*CO

Kuhn,

Savings Bank,

Thursday's

3.10%

&

Granite

Ga
to 2.90%, initial
demand has been Bridgewater Township, N. J
moderate with the present bal¬ Dupage Co. Tp. H. S. D., No. 87, 111.
Fargo School District, N. D._„__
ance in
group totaling $4,210,000.

in

R. S.
DICKSON

for

Ladenburg,

account.

group

Reoffered

cost,

Swank, Inc.

Salt Lake Co.

'

Co.

2.90%

trading market in:

Calif

2.60%

members

various

We maintain
active

/

County,

Seattle, and Henzig, McKenna &

3.05%

availability

a

by the

Co., National Bank

1981-1982

May 1, 1963 Index=2.938%

Co.

Federation

second

1 gso

100.26

runner-up

for

and

Estabrook & Co.,

2.95%

1981

of

made

&

California

3.05%

1981

1, N. Y

made

was

The

also

Co.

and

1981-1982

3V2%

Build¬

high quality offering.

3.05%

——3y4%
New York, New
York-——
3%

Safety

1964-1999
;

6,000.000

Mexico

ten additional bids made for

1981-1982

Illinois

York

bid

a

was

T'halmann

net

1981

on

&

$7,-

New

bonds

coupon.

coupon,
Loeb

2.90%

3y2%

investor

3,000,000

3,000,000

Manhattan Bank and

100.069

3.00%

y4%

Public

to the Chase

which
Asked

in¬

award of

Syracuse,
and

(1964-1981)

3.15%

1981-1982

Housing Auth. (N.Y..N.Y.L
3V2%
Los Angeles,
California
Maryland

the

at

the

Initial

now

abnormally heavy
secondary offerings ap¬

1982

3%

New

on

Maturity

3%%

„„

•No apparent

week.

re¬

propor¬

SERIAL ISSUES

Rate
__

__

800,000
School

the

in the

Pennsylvania, State—_______
3%%
♦Delaware, State

Philadelphia,

issues

offered

loans,

Thursday the

Other

and

most

result.

winning

scheduled

these

are

interest

volume of

as

,New York, State

Last

were

level.

type

vestors

i

♦Chicago,

the

New

ac¬

demand has been
generally good.

Trust

of

this

around

REPRESENTATIVE

California, State
Connecticut, State
New Jersey Hwy.
Auth., Gtd

Baltimore.

the

offerings likely to be
offered during this
period. These
circumstances may lead to a more

market

appears

sentiment to the end that
trend has bsen

at

moderate

ahead

total

ated

Joy

the

evitable

seem

Totals

scheduled

again

active

betterment,

limits

present

within

month

.
.

welcome

against

attained

calendar

mains

the
.

However

as

the

Published

fright¬

following

No Occasion for

offer

bonds

a.m.

p.m.

May 7 (Tuesday)
Hayward, Calif
Lafayette, La

Sacramento

an

competitive with close

for

covers,

this

brief

re¬

to be very

ing

struc¬

Palo Alto Unified S.
D., Calif

Dist. No.

Awards

of

_

public sale. Bidding has continued

Inventories Higher Than

interest

not'

.

being

market's

has

feeling

sale.

bond

a

that "may
to

to

spon¬

this

investor

strength

close

and

market

underlying

a

$250,000,000

Kenosha, Wis.

(Highway Revenue)
Rush, Henrietta, Etc. Central Sch.

: 1 >

municipal
underwriting with just over

Because of

factor has given

but

factors

v

in the field of

one

bond

The

through

the

since

some

of

of

tive

to the owner's

advantage

other

/.

Recent

all

buttress against inflationary

some

$500,000,000,

This past week has been

of

according

base

-

considerably be¬

11:00

/'2:00

;
1,500,000 ; 1965-1989

Mont

usually de¬

inventory

an

(Blue List total)

ir¬

for

perhaps too

bond market

busi¬

from

nervous

market

tax bracket. This

of

accompanying

market.

quieted

of, the

pre-arrangement

possessed

velops

higher

important

some

the

ravages

fanfare

accomplished

syndicate

a

little

and

our

one-

placement

issues. Most

ment. A market
surge

sizable price

all-inclusive purview.

May 1

on

enough to preclude
immediate market improve¬

any

broad general investor

a

dominates

enough

point has developed

a

sent

area

some

a

in¬

pressure

1964-1988
1964-1993

May 6 (Monday)

Helena,

the

yield

several

but

gap

Valley Supply D, Miss.

represent

market impedimenta from
viewpoint but it does repre¬

1,140,000
2,090,000

May 3 (Friday)

Pearl River

on

Benzie Co. Central S.
D, Mich

in

aver¬

a

flects:

market

heavier

a

doesn't

Cortland City Sch. Dist, N. Y.__

our

low

put the

moderately
lower
translating into an

despite

flurry

•,

back.

quarter

ness

into

week

2.947%

market

with

fillip

abides

street

May 2 (Thursday)

Clay Public Improvement, N. Y.

much

long govern¬
ments from all appearances is
high

side,

average
age

that

This

of¬

advertised

as

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

List

few weeks than

$588,855,000
1.

of

been

last

to

consistent

a

Thursday, May 2, 1963

In

is¬

increased.

inordinately high tax
ture, tax-exempt bonds do

against

This

offering

out at 2.938%

averages

lead

new

as

has

being equal.

alone

present

Index, reflecting the
20-year high grade general obli¬
market's

the

relevance the long-term
govern¬
ment
bond
market ), generally

Financial

and

of

chasm.

yield

gation

return

Despite

Commercial

This

total for the

better

Slight Price Rise

bond

of

demand represents

mar¬

float.

Blue

municipal

measurement

grounds Bank investment interest

perspective.

The

further

are

peak and

by

relative

what

precisely

the

and

represents

has

the

of

and

could
as

presently tenuously high

per¬

aura

generated

was

the week's

within

period

redevelops and

speculative

propqr-j

tone

this

imbalance

volume

point

(10-15

taken,(by fciauk

was

in

The

yields

ferings

10

The market level has reached

nicipal bond issues, reflecting the

recently

the

state

.

to

add

may

one

However,

of

immediately May

However,

further

ventories

week

and

rela¬

interest. The

in

volume

ahead.

$300,000,000

sue

fairly

retrieved

lighter

syndicate

held

at

been

basis point set-back may be

easily

to

The

r

15

or

Treasury 4 V8% account would be
together

had

of bank

pressure

our

market

following

by

correction

tively small due to the underlying

slight

writing

ago.

price

bond

some

since

week

a

then

the

municipal

no

.

Larger Issues Scheduled For Sale

to

as

stuff

perhaps

total

Tne

idea

no

secondary

knows.

coast

telephone.

have

and

from

.

Texas

10.000,000

1964-1983

10:00

5,815,000

1964-1982

11:00 a.m.

6,000,000

June 3
Carlsbad Mun. Sch.
Dist., N. M

.____

10:00

a.m.

a.m.

(Monday)
1,250,000

-

Volume

197

Number

6260

.

.

The Commercial and Financial Chronicle

.

make

Winds Out of Africa
r

*

'*

1
,

~

Nothing is
in

express

serious charges levied

some

against private mining companies operating in Africa.

Alarmed at

sible

their false,

interests

ignorance

of the accusers

widely circulated statements
tinguished

can

and the harm

make,

the well

business-statesman sets the

record

known

and

of the various
to

straight and, in

mining corporations, both economic and social,

private enterprise succeeds where

why

Mr. Randall

makes clear

he has

no

other

area

in

from

a

which

of President

River

has

he

long been

interested.

trip through Southern Africa and

He

was

recently

of

In

Chairman of the Council

and

tion

roar

these

winds

whatever

they

winds

of

emo¬

Africa

suddenly out of

days,

burn
as

violent

that
in

lies

and

sear

their

path

sweep

across

public

have been
such

A

dated

Mines,

and

Inc.

Clarence B. Randall

when

suddenly confronted with
lies

outside

experience.

prob¬

a

their

own

the

Arabs

call

ghibli, they strike without
the

most

•

warn¬

is

recent

a

scandalous attack launched .among

representatives of the Afro-Asians
in the United Nations against the

mining

industry

Africa,

and

entire

of

Southern

implication

by

mining

industry

'

West.

the

of

the

-V. The-'focal

center

emotional

highly

articulate

consisting

of

par¬

is

two-man

the

chael Scott, Angelican Priest, and

Alvin

Dr.

Professor
at

W.

Washington,.

Louis, Mo.
to

Wolfe,

Social

of

St.

as

econo¬

an

mist, but I think it will be found
that his Ph.D.

earned

was

thropology, and that not
years

with

the

tribe

for

ago,

the

in

Congo.

life

and

back

in

an¬

over

five

dealing

study

a

of

customs

country

of

a

the:

From this background he

has not hesitated to level slander¬
ous

charges

at

widely

men

and

favorably known for their indus¬
trial leadership.
The

vective

their

Here is

/

indictment:

Africa is being looted. An "Un¬

holy Alliance" has been created,
it

is

charged,

malefactors
whose

by

of

boundaries

at

evil

will

to

minded

exploit

standard

of

workers whose

living is deliberately

kept only slightly above the sub¬
sistence

and

level,

to

maintain

white

keep
that

governments

power

in
will
The

supremacy.

"Cape to .Katanga Team" he calls
them.

ist

to

The corporations named in

indictment

are

the

lowing: Societe Generale de

gique,

Union

Miniere




these

great

cor¬

means

every

they

whip

the

in

beneath

development

their

of

income
rica.

for

nonwhites

in

of

that

vanced

of

is

the

even

the

yet

new

ready

such miracles

na¬

risks

have

at

en¬

animosity

up

en¬

Nations

United

tech¬

4

remote the

more

the

deeper

alarming

point

is

required

be

of

bring
of

low-cost

a

prom¬

suffi¬

production

competitive in the world

establish

trols,

to

railroads

supplies

value
were

could

to

built

reach

by

companies
en¬

corporation

capital,

puts

assuming

to

is

then

di¬

such

are

a

created

are

sinister

normal

for

necessary

that
in

to

con¬

there

the

corporate

no

use

me¬

other way what¬

by which large mines

developed by the

vate

but

objectives

by

which

Wolfe

mines

vate

can

of pri-

use

If, of course, the end

capital.

the

for

iron

great

Professor

the writing,
the

materials

to

This advertisement

is

neither

the

delegates, and appears before the

of

Scott

Messrs.

is the abolition

enterprise

offer

an

The

NEW

ISSUE

I

not charge

do

has

tice

and

of the pri¬

system,,

questioned

whatever

doubt

no

sincerity.

have

I

as

great

for the work

respect

.

and

to sett or a solicitation oj an

their

personal

of the An¬

gelican Church of Africa—I hap¬

incidentally, to be

pen,

palian
bears

myself.

risk, and the capital requirements,
of

such

State

large

of

such

operations.

investment

would

labor
have

eagerly,

involved,
wroth
indeed1

been

'Minnesota,

enormously
the

by

who

from

flowing

the voters

profited

the

companies,

payrolls

taxes

and

into

by

their

ished

had

service

the

to

leged in Africa.

Wolfe

from the outside to tell them that

they

being

were

the

of

robbed

ancient heritage.

world, that which they feared

most

that

was

"heritage"
to

them,

leases

out,

before

and

because

fears

by

I

with

be

their

back

surrender
the

ore

of

respect for American
have

—I

been

could

be

elsewhere.

for

sound,

lived

to

produced

And

both

this

see

fine

institutions

ing.

But

what

of

three

all over Africa,;

too,

if the ideas of Messrs. Scott!

and

Wolfe

drive

prevail, for they will

private capital out.

Incidentally, the
to

seem

iron

ore

their

mines.
pany,

accusers

strangely silent about;
in Africa, for they limit

castigations

to

One American

for

example,, is

nonferrous
steel

are

not

Continued

on

du

offer to buy

any

oj these securities.

May 2, 1963

•

;■
Value)

or

proposed for sale in New York.

gentlemen

have

done

been

highly

not, in
gree

have

to

me

irresponsible.

which

my

to

seems

still

is

Their

of fairness and due diligence

which the traditions of their

own

professions demand.
Has No

For

dollar
tion

Price: $16,625 Per Share

does

on,

opinion, reflect the de¬

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

Vested Interest

myself,
invested

have

I
in

any

not

one

corpora¬

Stifel, Nkolaus & Company

named, but I do know min¬

ing, and I do know Africa, and I
cannot let these calumnies go un¬

answered.

Just

as

waters

the

Nile

of

the

Incorporated

A. C. Allyn & Co.

Johnston, Lemon & Co.

rising

may

soon

Bacon, Whipple & Co.

Francis I. du Pont & Co.

required

generations

effort to

construct,

so

of

devoted

may

fol¬

cept of private enterprise, and the
enormous

has

made,

repair

contribution

and

can

the

Hemphill, Noyes & Co.

Walston & Co., Inc.

Auchincloss, Parker & Redpath

floods

ignorance, recklessly released,
beyond

Hayden, Stone & Co.
Incorporated

destroy priceless structures which

damage

Haut

page

Non-Voting

being sold

Shelby Cullom Davis & Co.

Delaga Securities Co., Inc.

A. G. Edwards & Sons

con¬

which

continue

it

to

Newhard, Cook & Co.

Reinholdt & Gardner

com-,

presently-

going into Gabon to open a large

its

Common

These shares

here;

be

higher learn¬

these

they*

ghost towns resulting. Ghost

towns will sprout

Episco¬

of

their'

happen,?

scholarship

trustee

a

the

mined

was

the mines closed down/
ore

were

and

day

given

some

might

Corporation Organized and Existing
Under the Laws of the Commonwealth of Kentucky

.00 Par

their

Of all things in

A

underprivi¬

and

them

to

come

Kentucky Central Life Insurance Company

And I have great

the

com¬

Scott

Reverend

a

Professor

a

500,000 Shares

Class A

so

paid

munities, would have been aston¬

'

Scott

well'

as

unions

had fhey done so. And
of

The

Minnesota, which sought

the

as

.

high reputation for dedi¬

a

cated

an

Reverend

sep¬

thus to share the

I have

to

the

the right of

arate companies

offerinz is made only by the Prospectus.

either of these

gentlemen with bad faith.

lo¬

Superior, and

committees.

this
Bel-

pits

open

Wolfe

Reverend Scott

in

mines,

ore

moment

a

this

venturing

of Lake

west

never

joint

the

as

cated

cheaper

ownership.

suggest

facts. There is

until

anyone

to

something

soever

no

shared

monopolistic cartel

of

be

had

these

is named to manage.

ratio

is

have been known to the in¬

it

such

Steel

by

industry, from which

has always followed

come,

dium, is reckless distortion of the

mar¬

centuries,

the

one

and

may

for

that

suggest that such mixed di¬

In Northern Rhodesia copper

race

Each

membership

ket.

digenous

it

in

system—mining

joint participation

are

into

that

rectorates which

continent

even

metal

in¬

have

equivalent percentage of the

To

investor.

entire

take

frequently

of

vided in

the

capital

true

Risks

unrelated

part

more

from

the

of

the

to

vein

ciently

risk

amounts

on

Africa

ising

the

the

the

Africa,

do not advocate that Af¬

are

Board

location, and

mine,

view

of

Enormous

of

the

West

vein.

not

am

world—except

I

and

risk, and

Mining is risk—great risk, and

the

missed
the

adopt

the

Involved,

South

in ; the

terprises.
in

Risks

ahsingle

on,

through the medium of joint

nical help?
Great

sum

hedged. This is why every¬

totally

its own,

in

of

accusers

African

or

as

they

Russia,

undertake

resources

Tsumeb

rica

on

management

plunge the

the Germans found

ad¬

to

to

rich

were

infallible,

most

entirely

its

it

Geologists

to be

Af¬

if

undertak¬

speculation.

where

And who is bold enough to

believe

mining

sufficient

vast

a

the

mad

clination

has

all

largest

Even,

Croesus,

total

capita

such

alone.

as

kraals,

per

pro¬

commands

would be

the

which

facilities

another

delegates from the social¬

countries.

distributes

of

startling

more

corporate operation of mining

for

have improperly come under their
oppress

For

against them, and against private

national

selfish gain natural resources that

control, to

directorates!

wealth

great
crosses

power

ing

no

steel

•

Indictment

the

that

these two gentlemen

command,

crusade,
;

are

and

true!

Using

deavored

there

loosing streams of in¬

against

porations.

com¬

companies have what

year

been

And

the

even

assume

Assistant

University,

Wolfe

a

have

Anthropology

Reverend Scott refers

Professor

than

the

knives.

and

capital to make it prudent for it
to

offer

governments in

Incredible, but

does

Mi¬

that

calls interlocking

he

a

team

Reverend

Not

of the vast wealth of

lying

corporate

involved,

of the

•,

in mining in

engaged

areas

among

this

of

outburst

for

built,

socialism,

quite

United States Department of Jus¬

company

dra¬

copper

given them the highest

•

Africa,

terprises,

v

ticular

does he

these

dominated

the

crude

unaware

gold

humanity?

these

,

Like the sand storm of the des¬

and

the

Wolfe.

W.

proof

white

some

•

the other necessary

vided.

than the pounding

;■ without outside financial

Alvin

are

of

tions

.

for

Solely the facts that these

inquiry

ing,

witness

substantiate

Southern

which

the

what

thoughtful

ert,

Cli¬

-

is

panies

that

Selection

Metal

American

crimes against

and bias for

lem

Rhodesian

Professor

to

substi¬

Mines,, Chibu-

Mines, Roan Antelope Cop¬

And

passion

Anglo-*

Corporation,

prosecution?

ans

tute

Copper

-

of

Consoli¬

Rhodesian

Rhokana

Mines,

Who

who

Corporation

Africa, De Beers

many

ric

m e

using

Practice
The

con¬

large

hospitals

state
of

least, not yet.

opening

ig¬

enterprise the Bemba

purpose

—at

black, might live,
brought under control,

and

7

color, but this they have not said

of

see

such

could

lines

by

horse

a

I

schools

brought about. Without

great

would still be

Company,

South

max

responsibility
among

Africla

Anglo-American

ir¬

of

by

is

practice

malevolence.

than

way

that

working force,

where

South

Trust,

rouse

storms

naked

or

other

To

gross

built,

transmission

malaria

represented

either

shafts

replacement

the bush where the

at

per

that

is

deep

smelters

both white and

that

course

be

indus¬

great

until

sunk,

the

structed, townsites hacked out of

be

These

o,

of

out

luma

winds,; to

many

Bantu in the Transvaal would still

sciousness.
are

electric

British

Mufulira,

con¬

must

the

reach

rivers dammed to generate power,

Katanga, Tanganyika Concessions,

American,

our

the
pos¬

development

participations

other

Hot

countries;
been

developments like the Copperbelt
in
Northern
Rhodesia

Foreign Economic Policy.

on

trial
had

for

making

metal

of

pattern

cor¬

matic

Mr. Randall previously served President Eisenhower

as

of

the

this

no

joint

returned

foreign economic policy as a special assistant and then, from

1956-1960,

in

norance,

a

—an

Kennedy to Ghana in 1961 in connection with the Volta

project.

organized

bars

nec¬

that

the board of directors.

on

'

on

in

group

evil

special emissary

a

be

than

joint participation by

each

fail.

vested interest other than

publicly spirited citizen concerned with the welfare of Africa

more normal or

mining

happens it follows of

so

well

as

methods

the

and thus enter the consump¬

particular mine, and when that

a

dis¬

doing, educates the protesters as to the enlightened contributions
as

and
sea,

tion

purpose

the

economic

.

■:

essary

Company

strong exception to

if

of

the
per¬

of

world,

-

porations
Randall takes

Mr.

well-being

mitted.

By Clarence B. Randall,* Retired Chairman of the Board of
Inland Steel

the

underdeveloped

:

•

•

.

to

(1799)

Straus, Blosser & McDowell

25

*

The Commercial and Financial Chronicle
8

Loral Electronics Corp. and Wesco

New York 6,

Financial.

is

DEALER-BROKER

*

*

INVESTMENT LITERATURE

PARTIES

INTERESTED

SEND

TO

*

Co.,

&

Forgan

Wall

45

—Watt

Watt

&

Swingline Inc.

Inc.—

Winckler

Com¬

J.

Company

—

Analysis

—

Conwest Exploration Company.

Department

available

Also
Can

Westinghouse

Air

Over-the-Countef Index —Folder
Brake.
ment
Corp.—Analysis—Bregman,
United States
Comparative fig- showing an up-to-date compariCummings & Co., 4 Albany Street, Major Pool Equipment Corp.—Re¬
ures for first quarter—New York
son between the listed industrial
New York 6, N. Y.
port—Hill, Thompson & Co., Inc.,
Hanseatic Corporation, 60 Broad stocks used
in the Dow-Jones
—

Averages and the 35 over-the-

Street, New York 4, N. Y.

counter industrial stocks used in
the National Quotation Bureau
American Standard, Flintkote and Averages, both^ as-to yield and
Georgia Pacific—Rittmaster, VoK market performance ov<Sr a 23Industry—Memorandum

,Building

sin

&

40

Co.,

New York

5, N.

ExpKahga'Pl^.'TPar period — National Quotation
Y. Y- Yo
'»Burefti,,^Inc;, -46 Front. • Street,' '
^*Npw York 4 N Y"''

Colby

is

available

Also

Parke Davis.

analysis

an

~';'V

Co., 42 Wall Street, New York 5,
N.

—

Also available are reviews

Y.

of Falconbr itfge Nickel Mines

•w *ori£

Payments—

of

Nova

of

n.,

,

'

Wheat

C.

Scotia,- Railroads—Review—J,

•

Bay Street, Toronto, Ont., Canada.
•

Ltd.,

ward

conservative

looking

flexible

man¬

modern

mixed

with

a

outlook

to

the

future

the "consuming

public.

agement,
needs ;of

.-.Cash dividends have just been
raised

to

$0.20

quarter

per

on

Comparative

stock.

the. -common

earnings figures are as follows:

and

"1962
Ppt*
-

:;7

rp

:

>7_'-

income-

Com.:"shares

498,846

earnings

'

1961

''

'■

' < $1.61
$809,146

Street,

St.*. James

244

is due to a for¬

this fine company

alysis—Royal Securities Corpora¬
tion

growing success of

The constant

Net

Budget WFinance—Comments—D.

value total 498,846.

par

Limited—An¬

Corporation

Moore

'

,

outstanding $1

shares

Common

International Business Machines.

Ltd., ; 220

companies.

only $677,-

is

debt

909.

Company—

Review—Carl M. Loeb, Rhoades &

Ltd.—Anal¬

Co.,

ysis—Annett; &

Chemical

Monsanto

of

v...

Asbestos Corporation

Street, New York 5, N. Y.

—

Mass.

Boston 9,

Street,

70 Wall

Analysis

Incorporated,

Company

&

State

85

—

■

Balance

Canada's

Review—Bank

to

reference

particular

Company

Anaconda

2

its own use

other

to

Long-term

Interstate

on

Stores, National

and

Company

Develop¬

reports

are

sale

for

and

Cohen, Simonson & Co., 25 Broad

King

7

Continued from page

itably developed for

Street, New York 4, N. Y.

&

I Like Best

26, Mich.

Limited,

Research

The Security

building, Detroit

Street, East, Toronto 1, Ont., Can¬
ada. Also available is a report on

American

„

Organization

Penobscot

pany,

Limited—Report Kroger

Mines

Advocate

MENTIONED WILL BE PLEASED
THE FOLLOWING LITERATURE:

Moore

Analysis—F.

Street, New York 5, N. Y.

Companies of the

Banks and Trust

with

Thursday, May 2, 1963

.

.

Also available

N. Y.
of

review

a

Kent

Laboratories—Analysis—

Glore,

FIRMS

THE

THAT

UNDERSTOOD

IS

Abbott

RECOMMENDATIONS

AND
IT

.

(1800)

'

;

1960

•

•

V7 $1.19

A.7' $1.49

$767,826> $618,395
339,234
339,234

cut and de¬
sporadic
price
Also available is an analysis of
wars, income is steadily rising. '
Their Own Shares during the first Retailing
Equities—Review with Canadian British Aluminum Com¬ Noranda Mines Ltd.
The corporation has applied for
quarter—Bulletin—Gerstley, Sun- ■ particular reference to Food Mart pany Ltd.—Analysis—Isard, Rob¬ Nationwide
Corporation—Analy¬ listing on the National Association
stein & Co., 211 South Broad inc., Safeway Stores, Inc., R. H. ertson, Easson Co., Ltd., 217 Bay
sis—First Columbus Corporation, of Security Dealers
Inc., Over-^
Street, Philadelphia 7, Pa.
MaCy & Co., Interstate Depart- Street, Toronto 1, Ont., Canada.
Toronto, Canada.

&

^

Purchasing

Actively

Companies

.

Main

East

Company, '1001

H.

Blair

Company,'5 Hanover

&

52

Industry—Review—Calvin ment Stores, F. W. Woolworth Co.,
Bullock Limited, 1 Wall Street, Aldens Inc., and Lane Bryant Inc.

Drug

New York

re-

Memoran¬

—

Weir

Young,

dum—McLeod,

Canada.

Que.,

Gay Street, Columbus 15,

East

Ohio.

Street> New York 5> N' Y'

50

Corporation

North

American

Car

ada.

Broad

Street, New York 4, N. Y.

Stocks—Study—Filor, BulPacific Power & Light —Memo¬
Cascade Natural Gas Corporation
issues in each which) appear in- lard & Smyth, 26 Broadway, New
randum—Birr, Wilson & Co., Inc.,
—Analysis—Walston & Co., Inc.,
teresting—Harris, Upham & Co., York 4, N. Y.
.■
155
Sansome
Street, San Fran¬
265
Montgomery
Street,
San
120

industries, with

selected

of

view

Broadway, New York 5, N. Y.

Company Portfolio

Investment

Changes—Principal changes in
holdings

stock

common

& Company,

F. Hutton

trusts—E.

Plaza,

Manhattan
York 5, N. Y.

Inc.,

Chase

1

New

45

of

Steel

stocks Selling at Lower

era^e

Price Times Earnings—Bul-

tetin

Courts, & Co., 11 Marietta

Street. N. W., Atlanta 1, Ga.

New York 6,

N. Y.
1963

for

Economy

Japanese

Securities

—

Co.,

6,

Broadway, New York

Ltd., 61

Also available is a booklet

N.

Y.

on

the Japanese Stock Market for

1963.
Japanese

Daiwa

Market

Review

—

Securities

Co.,

Ltd.,

—

149

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

Kanegafuchi

Brewery,
Takeda

studies

are

Chemical,

Yawata Iron &

of

Kirin

Spinning,

Asahi

Glass,

Steel, Ebara Man¬

ufacturing, Isuzu Motors, Minolta
Camera,

Nippon

Kogaku,

Mitsu¬

bishi Estate.
New York

City Banks—Compara¬

tive figures on ten New York
Bank

Stocks

—

Laird,

o s

1

e

&

City

Bissell

&

d y—

u

cisco 4,

4, Calif.
Company—Analysis—

Belt

Chain

Paine, Webber, Jackson & Curtis,
Broad

York

New

Street,

of

Bank

are

Co.,

&

studies

of

Pacific

Motorola,

Intermountain

Radio

Express,

Corporation of America, Syming¬

Addressograph Multi-

ton Wayne,

graph,

Allied

Corp.,

Ex

Stocks,

Chemical,

Cell

and

South
Angeles 14,

Inc.,

Templeton,
Street,

650

Los

&

Neu, 120 Broadway, New York

—

Exchange

The

York

N.

5,

Y.—20

copy,

$1.50

per year.

same

issue

are

fourth
Closed

panies,

comments

quarter
End

Buildings

5, New York.

turing

per

on

highlights

the

of

Corp., Uris

Data

Corp., Echlin Manufac¬

Co.,

States

Coastal

Gas,

—

and

Investment

Memorandum

Warren

818

—R.

L.

Olive

Street, St. Louis 1, Mo.

Dravo

Corporation—Review

F.

Rothschild

Company,

&

Co.,

& Co.

Motor

Norfolk

Trading Markets in:

Wall

—

Merrill

Fenner

Pierce,

Smith

&

Also in the same

N. Y.

comments

on

American

Sugar Company, Simplicity

Also
Central
Co.

Transport

Railway

Bank—Report

Hammill

Co.,

&

14

Street, New York 5, N. Y.

Industrials

•

Hemphill,
Hanover

Utilities

•

Gas

•

Noyes

co

Morris, Vin-

Company,

Kellwood

Corp.,

SCM

Kinney

Company,

Service Corp., Philip

Ford

Corp.,

Motor, Tractor

Hentz & Co.,

alysis—H.

72 Wall
Also

York 5, N. Y.

available is

report on Air Trans¬

a

Manhattan
N.

Y.

ments

White

inquiries invited

Plaza,

Bearing,

«

Timken

Commercial




Cor p.—Analysis—

Transamerica
Walston

&

is

Co.,

Inc.,

74

York 5, N. Y.
a

discussion

Ball, Burge, Kraus

on

Ohio

CLEVELAND,
Cook

—

Richard J.

has become associated with

&

Burge

Kraus,

Union

Exchanges,

as

Manager of the Mu¬

nicipal Bond Department.

James

Taylor has also joined the firm

R.

in the

municipal, bond trading de¬

Mr.

Cook

was

formerly

President in charge of

with Wm. J. Mericka & Co.,

Anti

with

which

Mr.

Vice-

municipals

Wall
Also

Inc.,

Taylor was

associated.

i
5,

com¬

FINANCIAL—SECURITY ANALYSIS

Roller

Credit,

American Srtieltf

& Refining, Pullman,

Amsted,

Economics

graduate,

age

37.

Strong financial

including 9 years Treasurer's staff major
with

analysis

financial
Also

2

of

years

background

oil company dealing

financial and foreign exchange problems,

forecasts

Castings.

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Cook, Taylor With;

Chase

York
are

of the!

and

reports,

systems

account executive leading

and

procedures.

investment banking

:

M.

74

y s

Talon, Alco Products and National

Troster, Singer & Co,
Security Dealers Association

8

4,

International Harvester,

Motor,

United Utilities,

ing

1
1

New

available

Also
on

n a

Weeks,

Manager

partment.

Smog Devices.

Independent Telephones

Members New York

Inc.,

York

'

—

available

&

Co.,

representative

Building, members of
the New York and Midwest Stock

Street, New

Street, New

Company—A

banking

American Banker.

Commerce

reviews

Gillette

York

Advertising

cial

Ball,

Alden's.

available

Also

New

ACF Industries, and Rich's Inc.

are

Y.

as

ment

Dempsey-Tegeler &

Supply Company, Carter Products,

of Colgate-Palmolive and

N.

Producers/Pipelines

Block

Study

Co.,

New

Street,

Hornblower
•

&

—

of

Man¬

port Companies.

Industries

Gabriel

Arthur N. Snyder, Jr.
firm

America— of the Institutional Sales Depart-j
issue of ment. Prior to that, he was Finan-'.

of

Reader"

"Investor's

5,

on

5,

Tip Top Products Company—An¬
National

—Shearson,
Firm

Company

are

.

Franklin

York

na¬

invest¬

Comments in the current

issue

Western

&

New

Inc.

York

reports

are

,

the

Incorporated, 70 Pine Street, New

Incorporated, 225 E. Mason

available

formerly-

tional

York.

L.

—

Company.
.

New

120 Broad¬

Street, Milwaukee 2, Wis.

Snyder

Mr.

Co.—Memoran¬

Place;

chief

ficer.

with

Exchange

Jr.;

executive; of¬

was

Screw

by

Chair-;

mdn and

Ala.

Corporation—Report—Loewi ufacturing

Falk

an-•

Long,

Bpard

Industries Corp.—Anal¬

Standard

Lynch,

New York 5, N. Y.

way,

and

financial institutions

H.

First National Bank Annex,

Sweets

2, Colo.

Company—Report

Gasket

been

William

Commerce

828

Company,

17th Street, Denver
Detroit

Wisconsin

For banks, brokers and

New

dum—Kidder, Peabody & Co., 20
Estate

Real

Denver

Com¬

Investment

Control

Meeds, 120 Broadway, New York

cents

Also in the

pany,

Chicago 4, 111.

—Boettcher

Magazine, 11 Wall Street, New

of

Company

Union

Company,

Company Incorpo-" Mobile,

Wall Street's Favorite 50—Survey

Magazine"

has

ysis—Shropshire, Frazer & Com¬

Companies—Analysis

231 South La Salle Street,

Exchange"

&

Southern

5, N. Y.
Continental

agency,

account

executive,.it

Bulletin---Oppenheimer, Newborg Building, Cleveland 14, Ohio.

Association

issue of "The

—

rated,

Company.

—April

Inc.

Steel
on

Service

Public

Illinois

Trust

Hanover

Manufacturers

Engineering

na¬

nounced

—The

Corp.,

O

tions
as

Hampshire—Analysis—McDonald

Combustion

City,

York

Broadway, New York 6, N. Y.

Avco

memorandum

a

New

advertising and public rela-,

Circular—Charles King & Co., 61

Jones

has

Jr.,

Snyder,

Nelson

Canada—

of

Corporation

.Teletype 212 571-1780; 1781; 1782

''

A:

Hanna

—Watling,

Company—Analysis

Lerchen

&

Co.,

Ford

Building, Detroit 26, Mich.
Intercliemical

Cor p.—Review—

Fahnestock

Co., 65 Broadway,

&

■

Doremus & Company, 120

tional

Power

Jr. With

Doremus & Co.
Arthur

Broadway,

Broadway,

2.

Also available

4, N. Y.

A. N. Snyder

ration, 111 Corcoran Street, Dur¬

Calif.

Goodbody

1

Analysis—First Securities Corpo¬

4,

about

price is

O-T-C

16%.

joined

Beverly

Hills—Bulletin—Mitchum,
Spring

the-Counter Daily List.

ham, N. C.

National

City

Calif.

been

have

Costs

Piedmont Natural Gas Company—

New York.

&

Publishers—S t

Textbook

New York

Booklet—Nomura

M

ing, Houston 2, Texas,

Broadway,

Ill

Inc.,

Stocks-

Insurance

Memorandum—Rotan,

alysis—Yamaichi Securities Co. of
York,

Life

Texas

Francisco

25

Co., Bank of the Southwest Build-

Japanese Department Stores—An-

New

Than Av-

.

spite .constant

Current

V

&

King
—Analysis—Herzfeld & Stern, 30
Street, West, Toronto 1, Ont., Can¬
Limited,

—A. M. Kidder & Co., Inc., 1 Wall/ Company,

5, N. Y.

Review-Quarterly

.Industry

Chemical

Canadian

Montreal,

West,

Square, New York 4, N. Y.

Street, Richmond 19, Va.

firm, financial planning, portfolio
and

analysis, security analysis

general brokerage. Box E-52, Commercial &

Chronicle, 25 Park Place, New York 7, N. Y.

Financial

also

Volume

197

Number

6260

.

The Commercial

.

.

and Financial

Chronicle

(1801)

How Canada Can Increase

Manufacturing Exports
By Edward Marcus,* Professor of Economics, Brooklyn College,
Brooklyn, N. Y., and Mildred Rendl Marcus, Economic Consultant,
New York

Canada's

massive

has

sector

taken

strides
it

in

long

a

up

modern

a

manufacturing

from its historical reputation as

are more.

economy is now engaged in

defective items

produces

recommend

allowing: (1) existing plant to

plants
(3)

by

permitting more

emphasis

lower

the

on

and

mergers

manufacture

(2)

increasing

secondary

of

capital-output ratio or higher labor-output

tal-labor

(4)

U. S. A.'s

between

indeterminate

ratio

with

a

agricultural implements, electrical

machinery, textiles, and
other

the

I

rather

was

amused

by

meet the

analogy between the implicit

'problem

Canadian

—

competition
17th

and

was

French

American

an

today, and in the
century.

dian secondary manufacturing in¬

that

At

dustry

struggle between

a

in

Colonialists

challenge of the Ameri¬

tariff did not exist?

18th

time there
the

—

host of

a

they able to

market, even if

can

American

-

products. Are

Quebec

from

the

and

the

Middle

At¬

compete

at

American produced
if

there

lantic Seaboard to control the most

If

the

manufactures

Canadian

manufacturing

sector of the economy was

show

net

a

gain

States

increase

in

imports

have

net

a

of

more

of

the

loss.

In

this

their

course,

instance

have

market

ceded

the

to

Canadians than they had ceded to

the Americans. On the other
if the net shift in
trade
Edward Marcus

valued

and

national
the

abundant

of

supply,

were

more

source

those
and

offered

thus

to

their

the

trading

expensive than

by the Colonialists,

their

bargaining

weaker.

was

Now,

power

three

some

centuries later, the American

their

suc¬

Colonies, also with

lower-priced goods, present

similar

a

the

to

cessors

problem

the

to

«

Although

closer

were

favor

Canadian

fur.

resource,

French

goods

Mildred R. Marcus

inheri¬

in

:

l.

of'

the

rests

come

cost

is

the

same

and

St.

Hudson

the

Lawrence

be visualized

Valley

Valley

costs,

and

the

chosen

dian
the

tackle

to

mastery of the Beaver..

Historically,
has

been

porter

a

of

the

fish

the

Canadian

in

the

19th

this

in

and

century,

metals
War

and

been

evidence
natural
Now
newer

all

them

low-cost

has

—

the

manufacturing.
United

favored

processed

penalized

States

Canadian

raw

materials, but has

finished

manufacturing

has

and

goods,

had

to

grow

and develop by its own bootstraps.

Therefore,
segment

we

of

must ask how this

the

economy

stand up to American

if

would

competition

the trade barriers between the

two

countries

were

dropped.

particular,

how

secondary

manufactures

These

include

or

with

widely.

that

the relative

of

use

productivity
States.

plant

employee who works with

is

three-

Another

in

here

the

manhour'Jn

Canadian

ondary

manufacturing

61%

the United

of

In general

States

there

only

in

figure.

then, Canadian produc¬

less

United

productivity

States.

in
'■

■

1..

is American

productivity

higher than Canada's?
it another way,

why

so

Here

.

clarifying

that

review

create

ences

in

the

much

the

the

manufacturing industries.
dicated

first

to

be

try

has

trained

,we

rials.

a

large

workers

a

of

corps

while

lacks this essential
latter labors at

one

be

can

in¬

but

is

materials.

the

on

opinion

Canada's Economic

which

at

no

net

stated

and

that

disadvantage

unprocessed
cost

construction
even

well-

another

and

relative

together these cannot be

assigned

too

competitiveness.

consider

them

great

marginal

a

role

in

I

subsequently since
influence

cannot

be

ignored, but they do not

to

be

the

causing

the

will

seem

determining factor in

lower

productivity

in

these

presentation

some¬

We

last

small

costs

an

offer

securities. The

turn

to

now

sell

nor a

of

reference

almost

intimately

and

the basic
This
the

trouble

area

phrase

Our

other

seem

to

through

"scale

on

much

fruit, and

of

Globe

industry could, I am
supplement this overall pic¬

with

details

from

your

too

firm

tion

runs

of

less

size,

that

is,

those

Common

The

than

The

Canadian

is

economy

Copies of the Prospectus

economies it hopes to
grow faster.
At the same time,

may

undersigned,

ondary manufacturing
in

sult

excessive

would

products




In

Canada's
fare?
such

as

depressions,

domestic

some

based

start-up costs

per

Factor
Canada

of

product

(in

a

gross

constant

to

$34.5

crease

GNP

billion

of 18%.

was

of

seeks

growth

with

follows

stability.

the

towards the

From

increasing

development of

this

1961,

Italy,

trend

Share

been

a

processor

wheat

of

flour

its
as

Merrill, Turben & Co., Inc.
Westheimer &

raw

well

well

as

lumber,

and

Ball, Burge & Kraus

Hayden, Miller & Co.

refined

non-ferrous metals have all been

important exports. However,

The Ohio

Company

as

Wagenseller & Durst, Inc.

wheat, wood pulp and newsprint
as

Company

man¬

ufacturing. As I mentioned pre¬
viously, Canada has historically
materials:

Grant, Rrownell & Co,

the

April 29, 1963

in¬

an

increase

than, for example,
makes

Stock

Paine, Webber, Jackson & Curtis

an

A gross national product

which is larger
that

1961,

$27 billion in 1955 and

$36.8 billion in
of 35%.

in

In current dollars,

legally offer these securities in this State.

McDonald &

national

dollars)

of
$29 billion in 1955. This increased

on

trade, Canada
diversification. The aim is

re¬

and

Productivity

had

foreign

on

plants

unit?

cycles, others
caused by influences from abroad
ence

would

Market Structure and the

business

because of the economy's
depend¬

optimum

overhead

be obtained from only such of the Underwriters, including the

as may

permit

yield minimum direct costs? Does
the product mix of Canadian sec¬

a

growth economy, and like all such

re¬

produc¬

which

solicitation of an offer to buy any of these

Price $11.00 per

to

Are

(No Par Value)

Canadian Economy

so,

the Cana¬

small

size?

Industries, Inc.

own

further

my

127,500 Shares

who

in

deduction, I

this point. Is

market

offering is made only by the Prospectus.

with

up

of

process

concentrate

marks

and

which

operation."
possibilities did not

bear
a

in

summed

in¬

you

'connected

in¬

be rooted.

may

be

can

as

entirely to the

a

on

too

sixth

one

neces¬

such

be

our

Continued

to

good

difference

would

possibility, the

Canada.

This advertisement is neither

factors

as

significant to explain much of the
American competitive
superiority.

may

equipment,

relative

Canadian

counterpart,

paratively

mate¬

elements

that

is not quite
American

its

a

Report of the Royal

Certain

their

coun¬

disadvantage. Its

raw

accept

This

point very few could in truth as¬
sume, the final effect of the com¬

shall

higher in Canada, for example,
transport, energy, interest charges
and

ingredient, the

supposing

be

of

considered

was

materials

*

know-how and skill. If

not

are

to other countries in
regard to raw

later, few of these factors

apply to Canada.
The

As

to

access
can

1957

Canada

differ¬

competitiveness

in

Prospects

forces

inter-country

factor

promotion

a

efficient

Commission

American

question,

briefly

Even

be¬

possibility is the degree

we

the

of

per
unit of output lower
than Canadian costs?. As a means

of

this

sales

subjective analysis, and
difficult one at that, but it
would
hardly provide us with an answer.

dian

of ease

costs

might

variations

re¬

organization

company

a

and

explanation of cost differ¬

A third

Or, to put

are

ratio

States

ences.

t

higher,

are

the

that

major

Why, in spite of the fact that
wage-rates

United

Cana¬

efficiency is the culprit.

involves

the

industry variations

capital-output
the

such

the

Theoretical Considerations

American

the

Canada,

one-quarter to. one-third

than

are some

tween

tivity in secondary manufacturing
is about

matches

in

machinery and equipment. While

sec¬

was

Canada

States

high capital in¬
vestment and the intensive use of

states that in 1953 the value added
per

too,

United

estimate

or even

thousands of dollars. But,

causes

ability and its

procedure,

and

what

possibility is that

in

this

productivity?

management

handicraft worker cannot hope to
match
output with the modern

study

worker

a

costs

machinery. A

tens of

quarters that of

flection

the
that

rephrasing of

problem:

dian executive

as

machines worth thousands

United

main

A second possible
explanation is

produc¬

One

the

as

production

unit of Canadian output.

per

a

judged

higher

A fifth

to

worker

a

experience.

past

must consider Canada's

industry

press

be

of

cause

that

Therefore,

only

remembering

resources.
we

ture

base

of

drill

States, but this difference

cannot

of

petroleum

Canada's

sure,

World

Since

and

added,

of

part

newsprint,
ore

Historically
tariff

first

wheat.

iron

II

have

and

the

of

published data. Many of

In

furs,

United

sec¬

addition, I have had to limit

materials.

century the products

in

have

exists in the

as

is

basic

feasible.

frame

are

and

Cana¬

because

generalizations

more

In
my

factor

skills

question

variety of important

Both

a

ex¬

century forest products and food¬

stuffs,

for

sary

an

raw

partly

secondary manufacturing is

formation

Canada

course,

the

the various

not

may

high proportion of

the

important.

are

and

Canada
same

relative

of

readily analyzed, and partly

more

this

have

question by

on

quite the

WestemEurope.

Canadian

com¬

I

paid

wages

is smaller and thus

economy

producer and

17th and 18th
were

of

this

viewpoint,

because

again

may

competing for the

as

in

secondary

industry?

plements.

the

as

highly efficient

is

output and

the

productivity

is evidenced

shows that the Canadian worker's

sec¬

asking, how

focussing attention

the

still higher

of
.

basic fact—the

American

manufacturing

make

are

one

as

petitive is

in

American

on

such

numerous

the Canadian
as

firms in Canada, for
example, the
manufacturers of agricultural im¬

is

important

so

compare

of

vary

United

competitiveness of Canadian

less.

comparable

was

ondary manufacturing industry. It

what

manufacturing

hand^

balance

States, the
opposite would be true. The out¬

tors of French Canada. In general,
the Canadian costs of production

than

the

manufactures

increased

average

American

of

would

tivity

the

American

would,

Americans

the

than

the

—

manufacturer

the

exports to

greater

manufactures

able to

for example,

—

through increased
United

with

home

Canadian tariff?

no

were

Could Cana¬

probable

skilled worker

a

by the

also

now

in the United States?

Estimates

today, "A Canada-U. S. Free Trade

is

areas

all-important

does

Europe's;, and

Area?",

aim

refrigerator in Canada? And Row

slowed approach in removing protection against imports.

As I looked at the question posed

indeed,

are,

export. The

cost to produce a

ratio —i.e., capi¬

and

of

is

strengthen this segment of the

The

specialization;

products

equipment,

ondary manufacturing industry is
productivity. How much does it

consolidation of

frequent;

materials adds

possibility

differences in

.

rather than increase

grow

the number of firms with economic expansion;

The

fourth

capacity. However,

United States and

firms and unnecessary product-multiplicity. The authors,

more

breakdown of
machinery also re¬

consumer; durables which it
Many of these secondary

economy, which
in industrialized

slowing down the domestic economic growth rate. Joint-authored

are

raw

A

wages are too high in Canada.
But
is this a
meaningful statement? It
is not
wages or wage rates but
wage costs per unit of

our

to

study clears all suspicious fault-factors except one~i. e., existence

costs.

unit

lower percentage of its theoretical

items

of too many

to

and

per

addition, spoilage and

the wastage of

significant

a

transportation

manufactures

; not internationally competitive and the cost problem has contributed

In

less,

portion of the machinery, chemi¬

raw

material producer, processor and exporter. Nevertheless,
despite
impressive industrialization to date, Canada's manufacturers are

is
costs

cals,

its

to

manu¬

consumes.

a

worker

per

quires greater outlays for repairs,
and thus the plant
operates at a

and

~

output

therefore overhead

facturing, a figure which should
increase slightly over the next two
decades.
'
Canada

City

building

way

former reliance on
imports for
secondary manufactures has
changed. Roughly a quarter of the

9

Company

Greene & Ladd

it
on

difficult
page

26

10

The Commercial and Financial Chronicle

(1802)

sible

Can the American Economy

for

Competition?

California
tion

banker

the

to

excuse

is

•.

critics who
economic

worse

intervene.

Craven

Mr.

historical

points out:
(2)

norm;

(1)

',

we

productivity

our

(4)

and

up;

safely

;can

undertake

J

non-

College

fifth

the

in

ticipate

''Analyzing

topic:

in

the

last

5

2.5

Institutions."

to

apparently

The

billion dollars last year. Since out¬

challenges

come

from all

sides

—

be

this

Right and

from

point

nation

every

vidual
be

the

of

magnitude

2

are com¬

plex,

fully

we

and

must

their

understand ,them

must be

broad

our

economy—in

of the

challenges

poses

them

among
tween

the

Free

form

liabilities.
the

States

Our

World

the

as

and

almost

the gold

outflows

:

^

foreign competition in

of

pressures

indus¬

trialized nations.
There

is

here

more

could

discuss

and

exhaust

the

to

abroad.
official

This,

together

admonitions

we

in several forums. All of these in¬

must export more, has led to

the

fluences, however, show

fear that

their effects

possibly

of

some

out

in the total balance-

of

we

markets.

of-payments position of the United

been

States which pulls into a common

concerning low

focus

and

aid

the

and

problems

military

of

trade

might;

and

of

at

gold

lqsses and of economic growth; of
tax

cuts,

tures,

Government

and

private

monetary

investment

policy;

the

European Common Market; of in¬
terest

rates, unemployment rates,

and profit

flation,

debt

and

examine

charge

that

embarked
aimed
and

at

the

and

the

on

refute

United

dominating
charge

that

the

is

world,

the

is

aimed

at

away

and

is

of

self-less

embarked

national

on

a

bankruptcy.

course

of

of

is

competition

the

picture

mirrored

in

of

the bal¬

running. deficits

in

tional

for

payments

one

since

1949.




our

interna¬

every

The

year

annual

and

not

now

-

of

-

at

postponed

that

unemployment

continued

They

to

climb.

reached

6.1%

a

February and
;;

quite

an

discussion.

(5)

Private

1960

and

corded

were

Each

of

1961.

deficit

of

capital

especially strong in
Aside from

unre¬

transactions which-totaled

six

hundred million dollars

in each of those
years, and which
-

term

well

include

some

transactions, recorded

short-

short-

term capital outflows
contributed

$1.5 billion respectively,

balance-of-payments

cits is

those

years.

Concern

$77

S.

of

*

;

Gold

today

2%

they

as

been

the

times

were

in

since

years

that

2

to

American

econ¬

omy and need not do so. The dol¬

ajl

not, should

probability

defi¬

that

higher interest rates abroad than
at home
may have been
respon¬

sound

no

enough
is

will

not,
not

and

in

be, de¬

in

unless

bank

has

ever

liquidity to meet a 100%
it, but the United States

on

not

large

1958

in

and

every

at

year

exceeded

$6

billion

in

any

imminent

danger

without it and would
worse

with

The United States has

likely

devaluation.

nearly 14%

of free-world imports and around

40% of free-world gold. The ratio
of gold to annual
imports in the
U. S. stands about 67%—far above
the ratios of other

leading

coun¬

tries. In the old gold-standard
the British operated with a

era

far

smaller proportion of
gold to im¬

War

ratio

was

7%

In

1910

historical perspective,

the decline in U, S.
gold
was

in

5% at the outbreak of World
I.

a

the

We

have

out

of

selves

deficit

in

is

rather

than

priced

world

our

ments

not

markets, The

balance

*

,

due

our¬

to

of

payf

capital

countries

goods and services in competition
with foreign

running

surplus

a

billion

annually

goods

and

had

a

deficit

any

year

need

we

to

against

of

need

has

not
for

We

hot

do

bargaining

more

-sale

lower

of

tariffs

goods

our

got last

we

TradeJExpansion Act,
yet too

as

for these

soon

to have been fully imple¬

powers

mented.)
The

v"-'.'.1 "V
subject

rates

wage

exports

protection; at

(Part of this

is

$5

account

1895.

negotiate

in the

but it

this

tariff

the

abroad.

in

since

home;

in

nearly

services,, and

more

power

of

competitive

of

deserves

atten¬

some

tion. It is true that, for most items

in

rates

than

this

country

are

abroad.

wages

But

this fact obscures three very rele¬
vant
aspects:
The
thing
that
in

counts

tion
in

is

international

the

net

cost

and

characteristics

operate

in

higher
have

with

have

we

been

its

which

the

more

from

continue
to

hour. First,

per

strong

in

to

offset

Need

holdings

long overdue correction

of

trial

well

as

Studies

by

to

U.

often

S.

The

over¬

Indus¬

indicate
very

advantages
and

relevant

unit of product and these

the

only

growth
to

and

we

as

much

labor

by

by wage rates

have, had

tive

the
are

of

payments v

she

buying

is selling

picture of fail¬

a

competitiveness.

Our

Productivity

is

not

petitively

are

from

"

wholly

.

While

these

•

suffering
too

com¬

rapid

an

It

climbed

has

behooves

to

us

attention

to

consider¬

the whole than

on

to

our

pay

our

par¬

investments

productiv¬

own

hold

wages in line with
productivity ^increases,
and - to
maintain

deqrea

pr

prices

s.e,

wherever possible.

The Common Market poses,
there
is
no
doubt

(3)

challenges;
about

that., Two

ever,

may

.be

comments, how¬

appropriate.

First*

the exclusion of the British is not
final

and

rope

away

world

ond,

is

commitment of Eu¬

from the
from

far

stems

from

rest

the

of

complete. Sec¬

considerable

a

fear

the

part

the

of

our

agricultural

protectionism that prevails.

Europeans,

not

protective
have

out

to

ample

the

of

tection.

themselves,
their

of

United

high

How

ture when

we

when

in

a

agricul¬

free

American

the

expensive

from

strictures

of

will

have

we

pro*

practice it ourselves.
we

agriculture

ex¬

protest

we

illiberality

to

way

States

agricultural
can

European

Only

The

innovate

to

devices,

-

gone

point

slow

the subsidy program

grounds

any

for

complaint about Europe's closing
off its agriculture with
paternalism.

'

~

■

Our aid and military

(4)

pro¬

result.

an

Already,

three-quarters

in

abroad

are

approximately

of

our

military

are

economic

spent in this coun-^

slated

expenditures

for

further

re¬

duction this year. The basic
ques¬

tion, however, is whether
we

or

not

desire the United States to

ex¬

ert

a

leadership

world.
dent

on

Unless

Such

a

position

position

in

the

is depen*

flows of certain aid funds.
American people are

the

really willing to turn their backs
the rest of the world and
suffer
the inevitable
consequences, some
on

major aid program is essential.

overhead.

per

We

not¬

increase in wage rates, their pro¬

and

Board

price

as

the

of

also

of

than

us

other countries

try

are

as

is

States,

'* however.

*

innovation,

National

costs

influenced

It

balance

picture

bright,

Third, the labor costs themselves

tivity

de¬

Pace

funds

manufacturers

have

material

labor,

-

period

other

any

Keep

aid

labor" costs.

as

the

Conference

that

unit

States during

that

United

of U. S.

ure

we

and

produc¬

per

Interest

Rates

and

costs
are

hour.

advantage

in

productivity rela¬

growth of wage rates

striving to maintain

,

favorable ^showing

here. This is not

item

design and styling, packaging and
servicing. These items are part

head,

times

4

European

qualities

favor

our

wages

the

to

the '

grams
abroad
are
undergoing
''agonizing reappraisals," and will
three" important
undoubtedly j?e streamlined, as a

Comparison

,

Japan has been running

with

competi¬

of

of

a

adverse

an

producers. Ip recent

the United States has been

years

in '

studied.

able that

flows

inability to sell

our

2

some

unmatched .by

ity,

(2)

more

countries.

States hourly: labor

half

.4%,

augmenting

Still Competitive

We Are

A

these

rising much

the -foreign

the

in

abroad,

:Japan.-; But

last

own.

costs

and

in

ductivity

worthwhile.

spread; be¬
rates

in the United

costs

ably faster

gold and dollars has been

a

ports,- the

tnose
-

of

our

-

the.

Although there

and

still

are

1960 alone: I'd say the investment

wholly unfounded. crisis ;of the
thing the customer buys
of confidence should
suddenly ap¬ and we have strong advantages
pear out of the
blue, and even here in many products.
Second,
then devaluation would be a mis¬
total costs of the product must
take; the problem could be over¬ include material
come

States

coun¬

Common

Sweden,

wage

times

6

1953-61

countries-studied and 8 to 9. times

gold losses in each

as our

the

higher

Problem

Gold and dollar losses have

crippled the

lar need

hourly

those " found

investments

than

more

in

since 1950. The growth in our in¬

those

;/

Dangerous

,(1)
not

an

is.

short-term

great

year

assortment

order.

No

observers

develop

payments

abroad

These gross investment in¬

wage

run

of international
payments of *$1.3 and
United States? We have been
to the

ance

some

(4) The contribution to the U. S.

outflows

;

world

was

for

proposed

the list. Nevertheless, it does pro¬
vide ample grounds for comment

difficult than it

might
What

is

become

Our Balance of Payment Outflows

but

of

Europe will

some

the

fear

evident.

our

•

This

of

to withdraw from these activi¬
ties has been

charges and premonitions and
result.

breakdown

us

balance of payments that all sorts

misunderstandings

legislation

year

same

recent

many facets of the economy

touched upon and reflected in

gold.

problems and it does not exhaust

protection

foreign military and aid ex¬
penditures has not escaped notice.
Increasing domestic pressure for

these, of course, is true, but there
are so

into

5.6% in March.]

anxiety

our

charity"

Neither

Govern¬

hampered the form¬

Meanwhile,

Common Market, strength¬

balance

its substance "out of the muddle-

headedness

balances

have

and

United

giving

the

in

signal to convert

a

rates

market, and making our balanceof-payments position even more

,

States

this
con¬

,

imperialism

new

a

in

a

.

the

States

the

about

The United States has
ficient, thus depriving the United valued.
States of a sizable and
growing plenty of gold. No sound country

one

both

or

ens

as

in

points is briefly addressed in that

The

nity,

increase

[Ed. Notb:

outward-looking posture, but will
seek to be
increasingly self-stif-

budget

deficits. From this perspective
can

tariff

foreign

inflation

of the labor force in

home.

that

rates; of recession, in¬

public

of

uary.

negotiations for British entry into
the European Economic Commu¬

of

of

and

of

that

time and requested only this Jan¬

wage scales abroad

insufficient

(3)

expendi¬

last

There has

undercurrent

an

are

U.

Costs

large

significant

a

clined

exceeded

investments

States.

great

years.

American

concerned

are

Tax-cut

pricing ourselves

are

world

the

wide¬

a

ulation of effective fiscal policies.

with

that

we

on

dollars,' especially

This view has

home

at

in

.

community
of

resurgence

increas¬

an

ing number of markets

been

country and that they would

gold is

have al¬

has

view

Europe,

feeling the pinch of

are

interna*

our

still

ticular

There

holders

concern

we

the

(2) We

on

balance-of-payments, ..has

business

since

dollar

on

much

as

1961

$9V2

years.

compared with $50 billion

United

as

some

it—nearly

investments

of

foreign

of: vestments

impact

competitive position and

spread

the

period. This in¬

potential drain

adverse

unsuc¬

increases

their1 dollar

creased

through

tional

during this
causing

end

have '• creases, have

price

debt

ready sustained.

than

The

an

be¬

the

least

sider

problems,

in the

Our.: gross

margins

ment

relations

1949

have; added

we

to

increase

those

five

costs have been

gold position has

last five

of

have increased by over $17 billion
same

>

period

countries,

United

nearly twice V

grown

as our

$13^1 billion

as

about

banking liabilities in foreign hands

com¬

between

billion

inadequate

(7)

drawn

short-term

'

a-

industries

the

—

tween

invest¬

been stressed.

having taken place in the past

years.

has

period

Many attempts to

gold

$8%' billion

earning

gold

of

have. been

nearly

this

profit margins.

our

pay¬

The

Treasury

regimented societies, the struggles
underdeveloped countries and
business

of

:'.,"/ ■;

is

lia¬

1949, having increased by nearly
in * $47; billion over the succeeding 12

growth

'"

A

Various

the

many

being

5

of

*

(6)

competition.

particular

On the economic front world

petition

lion

challenges to

world

of

the

slow

to

economy.

cessful.

as

1949, and losses of about $6.8 bil¬

topic, the delinea¬

of

takes

down by'

special branch

one

tion

some

summarized

short-term interest

up

no

declined. Our net investment posi¬
tion has virtually doubled; during

side. The policy, abroad

price increases have been

are

balance-of-payments

liquid

United

complexity,V;.;?'

along

this

The

bhl'dnces'^f

The main thrust of my argument

of

holding

complained

control.

ments by the United States in

J. Howard Craven

success¬

be

can

"deficit"

to be

are

met

despite

(1)

if

but

degree of domestic monetary
the long

been

short-term

position

1961

billion

on

has

the dollar. In fact,

for-, high

rapidly

of

a

indi¬

problems which

while

attempt to provide

an

tries

In the United

and

'

8-year

those in eight foreign

vestment

simultaneously buying long-term

contributing

follows:

forms.

many

they

related

in

appear

the

of

securities

up,

there

rates has been sharply attacked as

citizens, that this situation
closer

rates

that

run on

lowrearhing

securities in

are
as

responsible

as

short-term

interest

some

cannot
we

both

concerned,

and

sold- large

with

rapidly in

at

our

brought under

Some

compass—and

They

much

very

Left,

from the

•

over

indefinitely

have

the

over

s

ments abroad. Our net foreign in¬

/

«

the

of

of

sustained

of

fit to "twist"

seen

'They

-

have been trading sterile gold

and

as

the monetary

A study has been

the

U. K. and Japan.-

their

and

1961

something

abroad,

in

evidehce

prices for such securities low and

of

flows

from

dollars in

How*

in order to -keep short-term

rate.

ease

to

billion

individuals.

advantage.

Department of
Commerce comparing U. S. trends

asso¬

Market

bilities

stimulate

;

'59, and '60, respectively, dropping

Chal¬

lenges to Free

interest

of

businesses

and

that

prepared

lar balances abroad, the very fact
that these have been growing is

we

in the open market, thus keeping

running 3.5,

years,

levels

effort ;to

an

volumes

3.7, and 3.9 billion dollars in 1958,

addressed to the

Forum,

general

par¬

ease

•

the

deficits have been especially large

Pepperdine

monetary

far as lowering sub* !;

authorities have

j

He urges private business to move constructively in the private

particularly pleased to

am

-in

and the strains

with World War ll.

general

borrowing and spending by locai

with those

sphere instead of voicing negative complaints.
1

the

ever,-

inflationary financed $5 to $10 billion deficit to stimulate local busi¬
ness.

stantially

re¬

a

interest rates at home competitive

still

a

so

;

competitive and need to negotiate lower tariffs without neglecting to

keep

dictated

,

investare

of

world

As to "the accumulation of dol-

y

weak

have recently

have/

degree

extending
rates

gold

our

net foreign

of

.

problems that only the

twice as fast as gold decline;: (3)

grown

,

Government

ciated

,

,

governmental

oppose

would

1933

of

by the devalua*

on

periods " of

or

as we

distortion

brought

tion of

experiencing, economic.

policy
greater

challenges posed by world competi-

warns

our

below the

not

ments have

;

Calif.

of private expenditures will rob the

timely expansion
situation

He

note.

alleviate

to

measures

of

been

serves

monetary

in

decline-

growth, such

and, without minimizing the problems we face, concludes on a

non-pessimistic

V

the

assesses

Ordinarily

economic

basic

a

foreign

profound

domestic

on

policy.

By J. Howard Craven,* Vice-President and Economist, Bank of
America NT & SA, San Francisco,

substantial

money centers has had a

impact

Face World

attracting

volumes of those funds to

Thursday, May 2, 1963

.

Profits

]

(5) It is not at all clear exactly
how important to our
balance-ofpayments

deficits

have

been

the

higher interest rates abroad. Nor
is the degree of
monetary ease in
domestic economy last year
beyond controversy. In fact, there
our

has

been

a

great

deal

of

debate

-

Volume

197

Number

6260

The Commercial and Financial Chronicle

...

,(1803)
about it.

ritil
Nevertheless, until

force arises to sustain
of

economic

country,
part

we

activity

toward

terest rates. Neither
to

reverse

long

ments

and

lower

to'"-' substitute^

stimulation for

a

stimulation

domestic

thus
of

.

Dr.

The

vestors

Last

reached

gift"

•

of income when dis¬

.

vironment

and

from labor unions to end restrictive

agreement

an

productivity; The economist, moreover,
flays the public, the press and the Government for failing to see
what is being forfeited. He hopes his American readers will not
du¬

at

_

followed each other in office have

some

cessions is

:

the

in

Pay-)

this

comparison

A

of

the

ex-

effects

eluding education, before the War

balance-of-pay-

our

on

i

.

nnr?
and

..

ments position.

(7)

We

of, deficits

the fear

on

deceiving ourselves

are

solute/anathema.
Europe

as

Last

sponsible

citizens

soLiisioie

contrary);

S

I
kept running
and* businessmen

bankers'
urced

the

-defkit

in

United States

^der

to

cations,

to

,

billion

suggested

i was

of

"be

as

financing should

inflationary.

These

tax¬

burden, oi these
'

:J

community

V\.

,

which

to

about

-

even

the

from

secure

con-

-

not

*

ibr<the

the

the

But

unending

a

not

titude

of

wards

the

tive

the

British

worker

community is

should

quantity.

qualifications to keep in mind.

No

'

accept

V J
A'/AA

-

gift

the

that

trade

decided

in

the

which

an

advance.

retired

after

34

years

in

were

4,1

Co., of

the

mu¬

He

was

Assistant Vice-President of the

bank. Mr. Stansberry is a former
Secretary of the Municipal Bond
Club and of The

Municipal Forum

of New York.

three

employment
vacancies

for

Clark, Dodge & Co.

so that any ac¬

Opens Boston Off.*
BOSTON, Mass.—Clark, Dodge &
Co.

1>. ^S a^aiways; more prevalent
m
^dustrms than
1%1P4pstries suffering from unemployment precisely because
there
is less fear of unemployment
and the workers

to

have

of

bargaining position and

are

nounces

The British

in

They

pay

the

and

Exchange,

opening of

an

an¬

office

office will be

new

under the

management of Jackson O. Welsh,

more

an

Assistant Vice-President of the
His

bound to

are

Exchange

Boston, located at 79 Milk St.

The

firm.

people

Stock

•

trigger-happy about* strikes.

has

York'

the American Stock

stronger

a

Incorporated, members of the

New

,

re-

unions

berry

nicipal bond department.

.take, i

workers

instead

Stans-

with Bankers Trust

years

worker would only have
0 cross the road-to find an-

?,

find

pleased

horse

however,

of

sponse

Reciprocity

the

-

Mr.

almost

ot^r J.ob; "stnctive Practices and

into its mouth critically,

seems,

been

of

graciously

the

to-*;,.2o0king
It

body

be

least

each unemployed,

of

of a
to

overfull

was

at

restric-

trying

been

that during the middle 50's, when
with

negotiations;

to

has

recently

Floyd F. Stansberry

refuse to remember

so

and

political

announced.

now

their fear of unemployment. Those

return i

the basic

school

it

attitude which is entirely due to

to

form

towns,

subdivisions,

workers are given "a square deal,"
!they will change their present

there

S0[^e

cities,

other

for the community. In spite of this
there are still people who seriPusly believe that if only the

who think

to

states,

districts

more is done for them,
the less they are prepared to do

the

try

abandon

to

resentative

nega-

a

Everybody ought to know by

agreed formula for the. redundancy scheme, so that the rep-

of

weaker posi-

a

Munici-

Financial

Consulting

tha*> the

an

extent

series

tQ

latter; in

concession,

confined

were

-

in

are

of

Service

cessi°ns to the working classes,

against unofficial strikes, and to

.for

they

®

■■

tive practices, to enforce discipline

.

their

mamm

as

*. manager

sympathy

any

the

Exchange,

not wish to learn the lesson taught
by experience with previous con-

*

,

to

Stock

joined

Broadway,

Pa,l

privileged have forfeited

-

has

2

failed to learn the lesson and does

con-

.

Qccur

scheme

the

undertaking

.

return

v

York

J

/

cil

to

concessions have improved the'at-.

good

are

in

received.

favors

clearly safe range. Moreover, the
methods

British

•

a

run

deficit

the

staggering

payer, has

did

3*

;

York

Press

Co.,

Evidently the Government has

Minister
of Labor whpn
npj?nti
A OI LiaDOr Wnen negOll^ the Trade Unions

only-they showed
busi- •the slightest wiUingness to serve

to

increase

sure:

the

rate

it."

showed

the

be

which

It

to

fving "tese benefits, if only they agree to
b 'dl^onfv Zv"
> WageS

into
- who

should not be excessive—but $5 to
10

and

A

1 ^
would ke no cause to begrudge the worklng classes for re"

a
a

growth. There were qualifi¬

ness

to

payer

cessions.

On the

budget

extent

tached

in-

stacfcfprincf

reveals the

now,

re¬

reaieu
feared

wiiu
who

citizens

deficit in the U

for

services,

tbp

rpxrpalc

nnxxr

shoulder the

in

year

sought in vain

I

ab¬

an

social

on

the

Stansberry

ti°n.

have

and this

moves

F.

public fail to realize that

right to expect

when

projected redundancy

a

the

What

New

th^ -Government,

under

.

LONDON, England—Ever since down. Whether or not we
sales).-the end of the second World War-to do so depends on YOU!"
profits the British Governments that have
: -phe latest in the
series of

understandable.

by the attitude taken when playing from« strength the so-called

)

.

plicate U. K.'s "short-sighted opportunism" which inspires this policy.
\v "A'A
irr* AA A'A

■

.more

and

practices, unofficial strikes and

other hindrances to increased*

j

.

quo,

•

penditure

•.

City, members of

that

direction would have detrimental
A

New

is

pro

rather than

before taxes,

billion

difficult to understand is

His objection stems from the government's

made concession after concession scheme under which workers diswas after deducting increased de- -to the so-called "working classes." -missed
through redundancy will
preciation charges. It is just not (The term has become, a mis- receive conpensation from a natrue that the American economy nomer,
for, while the middle tional fund. Details are not yet
has insufficient funds today. It is classes and upper classes in Britavailable, but it is certain that the
in
a
very
liquid position. Cer-" ain are now fully occuppied, a Treasury and the employers will
tainly, the raising of prices to very large proportion of indus- have to provide the money. This
augment the ratio of profits to trial employees are paid for doing major concession, as all the presales
is not
the .proper way, to no work and most, of'the rest are vj0Ug
concessions, will be made as
improve profits in today's en- part-time . workers on full-time a free gift ."with no strings at$51

&

exact,

quid

Company

Goodbody

reciprocally

a

And

were

Floyd

superfluous.

as

Goodbody

is

to

(per unit of

Joins

privileged,"

-

under-privileged

same

F.'Stansberry

attitude

as

all-time record of

an

"free

failure

corporate

year

;

series of costly U.K. proposals

a

a

missed

rates

F.

arrogantly holding the community
to ransom in the recent past. Their

at¬

vV

is total profit

very

fiscal

(.8) The important thing for in-

profit margin

Einzig excoriates the latest of

designed to provide labor with

business,

term* interest

downtrodden under

By Paul Einzig

permitting the maintenance

short

blackmail.

conveniently forgetting that those

monetary policy

relatively high levels.

and

oozing in self-pity about the "poor

m

rates

an

bully

they are in a weak position
they whine and wimper and wail,

move

is

a

and

When

•

in¬

remains.

current tax-cut program

bluster

i

balance-of-pay-

as* our

of

"I

likely

we

toward

difficulty

tempt

T

(concessions to Labor

this

.

higher

are

ourselves

dramatically
so

;in

j'r'\

•

not likely to de¬

are

far

very

/N

some
some

h,gh ,-atc

a

11

include

dearly for the Government's

associates in

Roland

H.

the

office

Schuerhoff,

'

certain

are

'Summary

The

A;

post

which
In summary,

I

United

not pessimis¬

am

about ' the

tic

position
relative

States

to

competition. We cannot

world

bility for

be corn-

but

will. We must keep

favors

..

.

cropping

but

up

There has

ciple of reciprocity.

The

sions

,,

n

made

were

It

•

'

is

'

I

they

share.

to

ceived.

T

the

earn

benefits

should

he

^ order he

our

their

the

curtailed

be

same

expendibut that

keep That government;
just received.

.

*

of

appreciating

the

for

policy.

not

,*

;

•

.

.

4

to do

[In

v;

-

:

I

.

which

can

..

,

only

,

Administration

American public

serve

labor.
..

this

Vice

-

President,

Brown

and

Theodore

S.

Jay C. LickDyke.

that u wm teach the United
'

A

States

hostile attitude

a

opportunism

inspires
ho

"grievance" will continue

an, excuse

short-sighted

more. -

my

April 11

A; The net

the

Conference

Press

Can

me,

„

and

lesson

the

on

how

article appearing in

your

a

it.

Now With A. C. Allyn
BOSTON, Mass.—Edward F. Mar¬

issue the time

shall has

become

associated

limit for

my

afford not to have them?"

the

were

fatal

He

work harder m order to deserve

the
tne

possible

of

of

oeoolp

people

is politically lm-

It

the

for

that

sustain

to

unemployment

facilities.

and

Congress

.unwilling

nnnmninvmpnt

heavy

that

fnnffrpsc

to

government

while heavy unem¬

stand idly by

ployment exists. If we want gov¬
ernment

expenditures. to be cur¬

tailed—and
up

do—it

is

private

fast

enough

the

excuse

for

move

rob
to

contained

£

the

deed, there is not

scheme

»

even

,.

any

,

In

need to work at all.

benefits

singly

birthright

negative

.

.

This

,

is

a

no

of

means

of complaint but a positive one of
whether

constructive action in the

we

,

can

afford

private
dens

sphere.

\-+

,

it imposes
tt

u

on
u

the

f

.

Pepperdine

College

Mr. Craven before the

Forum, Los

Calif.




Angeles,

overtax

our

or

"golden

^

^

may

scale them

an

offer

to

1963

Each Unit will consist of :

»

One $10 Par

ists, declared that the community
not

was

entitled

to

expect

trade unions to refrain from

power.

That

Stock, $1.00

ately, the trade

Price $28.00 per

tak-;

Copies of the Prospectus
Underwriters

are

in*;

a

strong

as

are

may

be obtained from such of the several

registered dealers in securities

in

this State.

were
Unfortunallowed

When they

position

Courts & Co.

hard-

,

to have it both ways.

Unit

„

community

unions are

value.

the

Teced trade union leaders,
hard-faced.

par

attitude

confronted with the

equally

6J/2% Convertible Subordinated Deben¬

April 1, 1973 and two Shares of Common

is

the most moderate Social¬

among

due

r

Lord Langford, who

itself,

^

solicitation of

the
i

speech in the House

would be correct if the

we

effect

by

Expect No Justice

recent

.of Lords,

bur- :

commun-

nor a

April 30,

handshakes"

knowing

^4.

resources,

have to cancel them

reduced
AT

the

■

address by

Can
a

We! .bargaining

lty. If it should be found that they

tAn

^

..ing full advantage of their strong

w

sell

Manufacturers of rotary cutters and other farm implements.

to b« received by redun-

In

follows:

experiment.

one

have

as
.

,,

bold

to

BUSH HOG, INC.

to

ture

of introducing

plan, would have been

offer

NE\V ISSUE

their

dant workers.

^

went far beyond the limits of that

an

of these securities. The offering is made only by the Prospectus.

100,000 Units

re¬

cipients.
The correct way

greatly

no

the

of the prospective

tend

corrective

Their

.

.

longer

unions, to

UdUO

substantial

The proposed

constitute

V

*

,

fact, there is

Lue

senses-

In-

need

The

intervene.

yXiUs

10r worKing even as nara as oe-

fore the War.

will no

squeeze

to'dpserve

order

government

moves

private.. businessmen

and citizens is not a

in

the unprecedented bene-

the Beveridge Plan, and of many
subsequent
concessions
which

expenditures
to

earn

any

:

±ns contained in tne scneme. in

to us to see that the expansion

of

of

certainly

I

and

buy

correc^ an inflated posi-

the

'down

This advertisement is neither

^lOA^by-mqans of disinflationaryp1.^811^63^
prospects of a.

Lord

principle that there is; jjo ;need'4o

through

are

Vm.m,

laid

subject at any;,'
rate ;to^a certain amount of re- influence'owing to ?ears
°* unemPloyment.^ The proposed .
arrangement will greatly mitigate^;
suca feara and will thereby greatly
Weaken the power:o:f the Gkrvern-

These

-

of

words

we

American
American

that
tnat

#

they

1943

is, Can

answer

Until

stronger.

even

now they ' were

afford to have these

we

benefits?

hardpr

have

clearly

in

will become

re-

;.;'' '

'

demonstrated quite

is
is

fact
tact

/ people

'

^ i

.

when Britain lost the peace was

at

Beveridge.

.

-

The
The

.

am

and

one

should

ture

I

that government

breath

-

prin-^J

conces-

not very.,announcing the Beveridge Plan of
with the man who social services. "^^ "To those who ask

in

argues

blame

contribute

However,

sympathetic

.

the

re-

•

■

.

efforts

the government, and ;•

on

sure

am

to

tempting

problems

.

gift they will demand

as

free gifts even

as

'

p'

instead

free

to exist and will continue to

been

never

the

and

So

the

of

that

say

will not be enough,

we

stead-

f

a

to

pay

with

result of this concesA.
C. Allyn
& Co., 30 Federal
^must recog- if there were some vague exhorta- sion, on top of all the other con- the British general election was
Street.
He
was
nize that our* immediate problem;.
formerly with
tions to the beneficiary to induce cessions, will be that the bargain- given as Oct. 1963. It should read
is
onp
of
avoiding
is
one
of
avoiding deflation
deflation inin- them to volunteer some additional" inrt'nncitmn
Winslow, Cohu & Stetson.
inS position of the trade unions October 1964 P.E.]
;

.

,

bear

real attempt to enforce the

a

inflation from

working

ingratitude

the

recipients.

if we

manage

can

we

these

all

the

on

dundancy

large share of the responsi¬

very

placement. We have problems to

face,

conferred

classes

the

of

Governments

War

-

they

The

Robinson-Humphrey Company, Inc.

Dempsey-Tegeler & Co., inc.

„

and Financial Chronicle

The Commercial
12

.

.

.

(1804)

Thursday, May 2, 1963

they will be sticky on the .upside.^

Yield and Quality in

This .-reflects>

changes< in' quality,

factors

earlier.

funds,

National

Saul B. Klamari,* Director of Research,
Association, of Mutual Savings Banks

By Dr.
.

emphasis

vulnerable than at any time

^

deposit payments with¬

/

Kiaman criticizes

the

.

With

i

f 1

n

68%

of

spending

will

be

expen-

devoted

-

to

•
,

f

business

.American

plans to

now

increase

7%

orx new

sig-

the

time,

same

1962.

over

exceptions,

year, a

plans

spending by

the

one

change

to

year*to

with

But

these

industry

major

no

At

amount

average

1964-1966.

years

level

its

of

than 7% from

more

the

during

the next

nlficant. ,hat the current spread business now plans to spend on entire-period,
FHA-i„sured -mortgages.

betwegn

plants

new

equipment

and

for

in

•

non-man

/

bpr .pf. iny estors^asituat jon/pot^

■/

Survey 6l

spdpd"ond billion- dollars- for 'new

,

-A

a

that

,

v

.likely'to change Spoxi. »In. other -ness' Plans for New Plants and facilities.V
i
W/vve -woxds,yr„thje ; torrent:"
.^r^^
cause of requced mortgage lend-rnprfgagLe-bond yield spread is.tfie rGraW-Hill Publishing- Cdmpahys/their investnrferit* considerably this
ing standards.
Record- flows ot hiOre.''normal? one around: which Department of Economies'.
"./C^^aV/ planHb; dn)p to fheir former
liquid saving and inadequate*m- .Qbanges will fluctuate;*rather:than ?
-1 q«a '4'riUVvd>

ter io rating.

:

9%, and

by

to

1963.

in

ihebyan in^^asing. min?}thy major iindiri^^^

far

.-

planning

not seek

One need

de¬

is;

credit

'

19^6 1 nahs "

mortgage,
•

nfnbnVHiitv

■

that *

quality of

the

is

equipments

,

do in-

it is

moreover,

business

and

with the remainder to be devoted to expansion.
ft/D outlays are seen still increasing but at a slower rate.
;
„.r
'*
■ \ '

^

judging the course of mort-

yields,

S.

U.

plants

on

estimates manufacturers will hike their capital

survey

,

In

°i

billion

modernization

.

develop-

salutary

finds

survey

$40

expand in. other sectors, of, Spend a record $40 billion
capital market.
plants and equipment this

deed

probabilities of failure. Thus, the

yields
great

so

a

that credit demands

fore,

series

a

-

be

record

a

ditures

ment, and it is to be hoped,"there-

six months.

represents

The

,

gage

"Risk

is
is

today
raaay

market
marKei

The^mortgage
Biongage

spend

will; rise.

before yield

will

Above i962's Outlay
latest

McGraw-Hill's

rejected, and contract terms

This

practices and offers sagacious advice. Barring major eco¬
nomic tax cut or housing demand change, he sees little reason to

more

quality in-

credit.

tightened,

current

expect a turnabout in mortgage yields, in the next

on

Appraisals will
sounder;- /substantial - credit;

be

Warning signals are sounded about the health of both Federally
and conventional mortgage portfolios in, today's race for

Dr.

to

|$

market,;

;

return

insured

yields high enough to cover pre-determined
out due regard for
quality and liquidity.

capital

lenders will be able to

extending
,

excess

into other

mortgage

risks

-

"the

of

As

off

drained

are

sectors

Today's Mortgage-Market
\

noted

tionary pres¬

subclued,

sures

mista kes of/

be so easi-

not

ly

".preliminary plans " fcHafennuallv since 1959 indicate
fqy.saying^-.
reasonably
expected
Itftree/year$iahead'
indicate'• th$ rtiiat
have
made
len^rf r i«teh^yety ^vailabl^ tp mortgage, lenders^:WiW/planed spend the same ambunt in" chases ©f buildings arid equipment
being Zlmla
X
ot
'Z
lessen.
T
, ..., / ;.
Lhsuccessive year through i966. $sierMcznUy

the fierce

•;

" c a m o u-;

flaged

in

as

Saul

Kiaman

B.

preceding
*

estate

vf sjfpadilv rising real

nrfces
prices.

Unless
Unless

versed,

many

reie

lenders,- servicers,

in

vield

competition-

order

Lnarentlv
apparently

to

what

cover

*n the absence of a major eco- /.These ,manufactureis also .re-• both the electric and

are

considered
considered to
lo be
oe fixed
uxea

costs for savings deposits,

utilities

gas

nomic
.stimulus, from a tax. cut or vealed
that they consider 22% of . wiI1 lift their capital spending
to ■
-ja.. sh*mrth«nin<f in hniicinff
their stock of nlsnt and emiin,s>
sudden
_

strengthening in housing

a

their stock

.

demand, the outlook for mortgage

will come to grief,

liabilities turned

plant

of

and

technologically

ment

equip-

... o
-

un.i™

•

$5.8. billion this- -year.

-

outmoded.

$jp reat liabilities, poration to decide that it wilLpay

facts

simple

is
is

trend
irena

this
tnis

and borrowers

The

depositors,, jn. m0rtgafe yields. - No^- is there'any ' And their

interest returns- .to

judgment will

are

mad scramble for mortgage
too

lenders and

many

willing

been

have

wink

to:

at

interest, and then set out to gen-

Sales :io Rise

savineVflnvA tanpr'nff"

iiQuid

•the-* mahufacturers 'expect unit:^uryey"aiso found, that bus-.
appraisals,« erate earnings high enough to ^-:r: -A-VA-f
to qualify marginal credit risks, cover these pre-determined pay-* .
*fxQtn * talk ]by :jbV.rkia'm5h at: the "sales t<y/rise only 4%
* Whole indicates that the;
to extend contract maturities, to ments. Just the reverse ought to Annual. Meeting, on .Economic-Outiodk-but::18:%- -between 196^ and 1966
cphibined effects of the revised
reduce down
payment require- be true!. Let us return, then, to -cSSfftonhia/
Tq' ineeVihis^anUcipated-WcfeaW*
ments,
and,,' in 1 some cases, to basics of financial management. 1963.
:
^
ws.4
in
demand, manufacturers
are
credit for Pew equipment will acencourage junior mortgage financ-'Let
us/seek to maximize yield A}", r. ;• ]* *7
< .V';, ,
i
planning to add 12% to their ca- count for over one billion dollars
ing. It is these downward adjust- only after due"?, consideration to vyj - XT v
pacity
during
the
next
three i
/additibnal investment in both
-r*
overly liberal property

,

_

,

.

in

ments

in

decline

ac-

quality

relatively modest

that

tablish

quality

counted for the

this

mort-

on

unchanged

relatively

or

over

In other words

yields

that

means

gages

yields

mortgage

the past two years.

have

the

liquidity,

and
fair

a

saver

rate

and

of

es-

after earnings have been

ket

situation,

necessitates a

this

quality have in fact dropped fur-

reduction in deposit rates, SO BE

ther than most reported measures

IT!

The

liberalization

of

underwritten
On

loans.

VA

from

an

few

FHA

and

loans,

have

risen

of about 85-92%

average

to

ago

rently^ with
of

Federally
conventional

ratios

years

terms

both

and

loan-to-value

a

mortgage

characterized

has

extended

dangerously

94-98%

cur-

record percentage

a

loans

no-downpayment

sented in the average

repre-

VA figures,

Maturities have likewise been

tended, commonly to 30
the

more.

At

FHA

and

have,

*

holdings

greater

relative

have

~

~

current

on

borrowers

and

years,

asset

in

earlier

their

cessor

borrowers. In the

tional

loan area,

conven-

it is significant
sav-

ings and loan mortgage lending in
of

excess

80%

praisal jumped
regard

lightly
dence

studies,

is

of

to

and

FHA

the
and

general

higher returns. On the contrary,
supports the
topsy-turvy thesis that it is dePosit rates that determine mort-

this kind of policy

it does not necessarily insure sound .lending
practices. It/is on the latter that
gage yields. And

attention

be focused,

must

and

with a powerful spotlight, if we
aro to avert serious problems, and
painful readjustments in real estate and mortgage markets.

eviVA

portfolio

QlT*f]
r^

T

w

'

a

The Future Course of Mortgage
'

,

f

.

market rates will
ward

in the months
expectations
are

pressure

ahead.
based

These
on

under up-

strengthened

business

activity,

even

if

rates

to

announce

year,

theirJ
an(j

DepartMr But_

kag

jer

represents

of failure.

TTrn^A^

Dr.

the
Leo.

greatest risk

Grebler, the

r®fll estate economist at

A, stated the




case

succinctly:

•

'

aft

tfju.

operating

said

they

would not significantly

raise this

year's spending

Thus, the

plans.

expected additions to capacity

are

cur-

can

plans

TvT^t-xt

J\[

JJlmpei IN OW
TT

The

.

goods

bvyu9

increases

biggest

are

has

pel

with

associated

become

Mr
gggj*

jlimpel

was

formerly

man-

of the trading department for

in

Co., Inc. in New

1917

as

career
a

associated fwith
&

in

runner

shipman & Marsalis and

later

15

'

'

was

in

this

in the durable

industries.
The
uiuuouiv,o. ;/ 111c

steel

inin

Ralph

R. F. Glad-

T.

Dimple

.

k.,.

.V,.

-

sticky

on.

the. downside,

so

& Co. in Newark.

*.

_

®^

ne ° ,^ear'

more-than in 1961.
The amount of research and deveiopment being performed by industry has risen so spectacularly
over the decade that expenditures
three

are

and

a

half times

years ago.

After

a

10%

increase

between

1961 and 1962, industry expects
the amount it will spend on research this year will rise only 4%.
between

1963

and

their research

pect

indicate that

1966

and

they

ex-

develop-

ment to go up slightly more than
tu gu up
iiiui C tilcux

DiCiil

one
year

billion dollars for the threeperiod. They will spend $12.6

'

more

V.

-

-

Auto companies are planning to

increase
14%

their

higher

Mayr Co. to

tnAncivv

Urease foi Auto Industiy
investment
1963 and ,to

Admit Partner

1964

than

&

:

_

,

fnd de/,e o^fv1 ^r0\ects io^

May 2 Robert L. Meltzer,
member of the New York Stock
Exchange, becomes a partner in
Joseph Mayr & Co., 50 Broadway,
On

Just as nominal mortgage rates ager and trader for C. D. Robbins sizeable ups and downs in the pat- New York

are

To this end, indus-

development.

than last year. 7 The billion on research and developi'ate of variation in the durable ment this year and $13.8 billion
goods sector extends from a high in 1966.
°f 34% for the nonferrous industry to no change for the stone,
olay and glass industry,
Jos.

27%

maintain this new level in the
follow Co., and Blair F. Claybaugh & Co. years beyond. Both the paper and
E0r 16 years he was office man- the
rubber
industries
indicate
Co.;

products

try as a whole worked on research

And companjes now

now indicates
investment plans for $1.4 billion,

"Wellington Hunter Associates,

new

of

W illi ilUlltGr ASSH. dustry for example,
JERSEY CITY, N. J.—A1 H. Dim-

for

But the
rate of increase planned for the
vary widely, years ahead appears to be tapersuggest;. sub- ing off.
course

expenditures, particularly

year's spending

A

quest

and
Processes American industry
continues to look to research and

now

sion
i

its

arid greater than 10

and he has been

Street

will

pushed

manufacturers

stantial

35 years

wail

rates

sales

In

.

Rise

To

was

rate
I d ie?

preferred rates by mid^

But, present

;

market

over

occur—

mortgage

This

tllC
the

beyond 1963," declared Douglas
untji recently with The First Bos- Greenwald,
chief economist for
^Qn corporation.
the company's Publication Divifor

City. He began his

the path upward.

of 1961.

capital spending

York

that

September

political conditions, the

keeri

john j. Laver &

firming does

last

"Under changing economic

John Butler

gtock

as

rent demand.

in-

rate

...

end,

year

geared to future rather than

associated

wjn

that

!

Bank

ment

timing of tax cuts—it is not likely

borrower

^

g^.ock

to

income

e

jnsurance

for

lower

Bu^er

. Q.

jiag

rate

jJUlllia
DC1U W
points'
below

the New York

jQ^n

operating

were

capacity at

which they prefer to operate.. But

of

posed tax cuts. Even if

terest

modest •

Research

and at the end

nine

international constraints and prosome

same

I1AIJC

tightening Exchange Place.

anticipated

the

City,

\TT7f J_1

be

Broa

ee s'

e w

;

83% „of

stock^Exchg^

Yields

There are growing expectations
that general money and capital

with ~a

compared

Manufacturers
at

^

N

y,

and this will depend more than
anything-else on the nature and

the

.

York

that it is the highest
ratio, longest maturity loans made
experience,

RlQQplI

U-j UloOC/11

a

of monetary policy accompanying

developments

disregard
in

ap-

by five times.

recent

in

property

these

in order to ease the pressure for

liquid
prede-

that, between 1959 and 1962,

To

that it is

wise for supervisory authorities
to urge financial institutions to
reduce interest rates on deposits

in-

to

smaller

w

than

or

borrowers,

taken

expense

than

come
^

loan

on average,

housing

time,

same

VA

ex-

years

,

1

,

4% this year.

members

This does not mean

suggest.

years,

/

determined and adequate reserves
set aside. If, in the current mar-

tj 01I1S

jjU. tlGl*

to

return

tern of their spending during the

City, members of ;the

New York Stock Exchange.

.

■fXtiSPftor'Mv

t

-*•

Volume

197

Number 6260'V.

The Commercial and Financial Chronicle

.

E. G. McGinnis Opens

laney,-Wells.: rEastman,;Dillon;;
25th

Anniversary" To Admit

Y?: GHICAGOrill ^Mullaney

?:

*-•
r

-

gompany,- 13^

Mill la ney

L

■*..

i

Wells

La

Salle

Ginnis

South

here

B~ McVikar

.

is-this we ek

sm a

firm.

/;- a,A

-

A

NEW YORK 20, N.

this

of

/

COMPANY
.

Nv Vr

:

:S

*

;yi%(Uans|er t)4oksxwitt;remain

t

$

'•
1

i

.

M.

■

op^tl.

Y.

as

follows: ; > /;!

shared 'j*.

W

.

-on

$4.50 Series A Convertible ;2nd Preferred Stock: $1.12W per share

m

$2.25 Series 8 Convertible 2nd Preferred Stock: $.56V4 per share '

1SAtp; ?fq^q1dfc^^tirMQca; oft i5Iay_'3'49j6li A i
CITY INVESTING

■'

-

have been declared
Common- Stock*: $.20 per

■

tliviucnd-hi Thirty ' cent's (Swf >.._
tlie^oqtstandvng. Connuon Stock '«
Goiupany.--payablb. June .'14. '1963,' \

,'j)er share
'

■

'■

'■

THE FLINTKOTE COMPANY

A

':

/

-/a quarterly

-Mayy f'

1^38,; the firm

DIVIDEND NOTICES

.

;

a^.-^
;;begin-^:;,

nirig • in-

v

'

name

of-McGinnis,& Co: v~t / A f

;

'

V
'

FIINTKOTE

B.- Ab-'

-

DIVIDEND NOTICES

iFrmri:
1l

the; firm

i

.A

•

!

United States Pipe'and-Foundry. Company
A
limited'partnership in the - "t ; A.'
V^y. BurTingtbh;;Ns* J-.,.April. 25,'.k963v' "A A
A A. y -.A" <[
>; -■;.XhieT Board of Dfceclbrs' this "'day .'declared L

ajmiver.-.

sary
-

Drive, under

fan!

•*

•

securities

a

i

.

.'
,

conducting

business from^offices at 6037 Ste-'

Virginia

and. Uucretia

DIVIDEND NOTICES

; bott to

-;',

'.a AT, celebratuig tts/';;
25th

hafei;;admitted

Exchange,

..

is

13

■

DALLAS, -Tex.:—: Edwin ;G. ;.Mc-

-

EffegtiVe May 2' Eastmah Dilloh>:
Union-Securities & Co.,- ! -Chase
street,' Yhemtfers^of: the MidwesT 'Manhattan Plaza," New York" City,-:
Stock Exchange,-founded
by Paul member of
New York Stock
&

A

(1805)

; 4;..;

These dividends

(jnixed stat^* pip.E.a^i> v5th*DRY. companv*:*.

payable June, 15, 1963

are

to stock-

/

v

The

.

*>-"Vw^as':: become
\A;

6 fit h

one

Bo^rd .of. ^Directors of tpis Qompany
on
ApriL- 25, - 1963 declared

.

v

"A,■

vest

t

t

m e n

stockhold'ers

of- record

in the

Middle

i"

Paul L. Mil 1 laney

'

..

Westj-

,,,

•

A

>

>

tiesrOyetithe

;

it has- been*

pant

known

as

and

DIVIDEND

become;

obligation

general

municipal bonds. Its initial
writing participation

ago; this mpnth when it was

dicate

in?

member

offering

>

LA J. F.McCARTHY,

'*- Mr;

<•:

'A;

j

,

one '

of

Bank

the

founder;
spent 40

and •/.

/

of
of

Illinois ;

Trust

He hag served

'

to shareholders of

;

-

:

Melvin G;

legislation;

,

committee.

former-President
Club of
;

rector

,

He

of

Chicago and is
the

of

the Welfare

Traveler's

is

the

ro»
-

plants

121/2f per share

v

now

;

•

Record June 7,1963 A V j:/

•

..

•

Declared. Aprils 1963

.

ending

c

of

Also, declared

.sha-e

p°r

able
cf

Life Insurance A

declared

has

ONE

1963

3C,

June
and

for

on

June

record

■

3,
May

a

dividend

COMMON

1963 *o
10, 1963.

STOCK, pay¬
shareholders

plus

accounts,

vested

in

be

the

June

on

of

holders

record

transfer

per

Common

outstanding

payable

1,

1963,

on

May. 10,

books

will

share
Stock,
stock¬
1963.

to

UALITY

close.

not

1963

25,

April

of

C.

1963.

25,

JAMESON

Treasurer

.

Growing in these
v

major area's 'o f service:.
CHEMICALS

LIQUORS

Co.,

added

declared

has

Directors

quarterly dividend of 30$

on

share is being

proceeds ,will

of

Board

PAUL

shares

NOTICE

DIVIDEND
The

The

April

HOUSEHOLD APPLIANCES

•

CORPORATION

Inc., SL Louis, and Associates.. ;

'cprnpany's

ALEXANDER, Secretary

$.45

cf

.Kentuckyj 'Central Life Insurance

Net

D. H.

WORLD-WIDE MANUFACTURE, SALES & SERVICE

offering of 500,000 class A

the'

Record Date: May 17, 1963

CHEMICAL

Thomas Welfer

Pittsburgh,

&

•

and

ONE-HALF

a

Class A Offered

Nicolaus

Declared May ly 1963

DISTILLERS

Secretary

Stifel,

DIVIDEND

•-

IIIIIIIIIIIIIIIIIB

CONSUMER PRODUCTS
Di-eotors

Board, cf

Kentucky Central

made, by

share

NATIONAL

and

PER CENT or $1.50 per share
on
PREFERRED STOCK, pryabl? July
19, 1963 to shareholders of record
July 5, 1963.

per

QUARTERLY

Thirty Rockefeller Plaza, New York 20, N.Y.

(11/2%)

Co!, at $16,625

379th

42'/2 cents per

THE SINGER MANUFACTURING COMPANY

DIVIDEND

common

.4 •)

a

Fund,;

Association

'■*-

run

Payable: June 13, 1963

( SPUR!

iiuitiiiiUiiiiiii

:

Council, the National
Aid

non-voting

A

di-

a

v/oa

V v

hi

seven states,

Argentina and Brazil.

Chicago.

Public

:;

-

Payable-JUR6 28,. 1963a

in'*26

Canada, England, Italy,-

President of the Catholic Charities
of

:

^fcnpiA Sedretnr^

Manufacturing

TECHNOLOGICAL AND INDUSTRIAL EQUIPMENT

DEFENSE PRODUCTS RESEARCH & DEVELOPMENT

QUARTERLY DIVIDEND

Bond

Community

H. G. DUSCH

•

A

record at the

cities, located in

Investment^ Bankers'yAssociation
and Chairman of its riatioriai-state

y

"

Vice President & Secretary

ADVANCED

COMMON STOCK

business-May ^6,1963.

•-*

,

;

shares of the

common

close of

DIVIDENDS

quarterly dividend of
\2Vzz per share on all Common Stock outstanding and
regular semi-annual dividend of $2.50 per share on the 5%
Preferred Stock, both payable May 15,1963 to stockholders
of record at the close of business May 1,1963.
a

>

they

governor of

as

\

President

•

PREFERRED

,

Company, payable May 24, 1963,

yyAChicago during: the" entire period.
A

COMPANY

DIVIDEND Now J72

the

on

Com-• V

Hthen

.

Ax

April 26; 1963A the Board
Directors declared a dividend
forty-five Cents (45tf) per share

-in the financial and civic life' of*

y

.

WILLIAM H. DEATLY

AND

The Board of Directors has declared

On

pany^ Five years:*later- he-fbrriied

<

COMMON

j

A':;.',..A.:,;;A/;:A/x;.;/'xA:<:A

Treasurer

CLEVELAND 10, OHIO

.

was

A his firm. He has rbeen prominent

>

|

May

on

MANUFACTURING

EATON

predecessor >\*

1933

<

[

rv

joined- Uawrence "Stern arid •Com- "

-

.

3,1963.

j

April 23, 1963.

/

has

the

A panyz fr atari dS25, to

A";A
A

National

„

•

•

and

banks" of-the.Continental

AV

*

■

of-

ment

.'A

;

firm

stockholders of record

to

COMPANY

RUBBER

j

•iiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiriiiiiii

associated with the bond depart-

v
A

-.

11 aney,

u

and. a half (27 V%) cents per
designated as the second
regular quarter annual dividend
for 1963, payable May 17, 1963
share

Steely

...

years' in La Salle Street;- He

<

.

"

M

the

heads

\

]

debenture

a:

'
■

j

..

seven

XSinin^y;

a 'syn-

United "States

for

Corporation.■'

■

91

'.to shareholders of record at the close
of business on May 10, 1963.
• v

under¬

25 years'

was

D|VIDEND NOIICE

Guarantee Company have , f
declared a dividend of twenty- ,|

:'/. A Dividend of seventy-five/cents
($.75).(Canadian) per shar.e has been
declared on the Capital Stock of this
Company, payable June 10, 1963;

specialist in

v,

A;:!

COMTANY

■

"...

and SmeUihg Co., Limited

municipal

has

and

leading

a

and

revenue

'

A';

Secretary

'^XI lids oil Bay'

prominent partici-

in corporate

underwritings

.

BOWERS

I

past quarter centqry

a

JAMES E. McCAULEY, Treasurer

;A'-V ;;AA^:AV'AC: -'y May-1,1963

ML
GUAkiNTEE
\

"

| Trustees- of The Titld

'

;

THE TITLE

of

/ f-ilfci

dealing

in corporate and municipal securi-"

v.-f-

,

close

at -the-

.

AA

consecutive

dividend ,?<'

•

^business oin .May
A'/' " J;
HAZEL T,;

banking firms

a

v

dividend^ of -one pbre&rt on the
$.5y parT, value' "common 'stpcftd pt thft'.
Company payable June
20,
1963 .-.to

stopk

e

PLASTICS

to

L

FERTILIZERS

•

A ,:;AtLA/';

METALS

capitaland •/•sur¬
and- will

be

in¬

accordance

with

its

investment

policy.

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■>

established

■

.

in

writing-

j
|

.

monthly debit life,- industrial

life,,

industrial; health /^and * accident,
group

:

a

•'

a

•

■

■;Broderick-Coleman ..%■,:/

>

"

■

v.

j-%

A/.;;

.

.7v»'vv

-

•-

♦ t.

.4

-

-,..w

»:

-

A. ;'A/
:

.

.v

;^BrodcTi(^sA&^ Coleman,. corporate -A;

hi-

haveranhqunCed'

V

-r

■
♦

ir "i s
*1

-

bjs.- •'**?

.«

"■" v*
r

•

-

0f\-

•

vr

r,

.

1

-

;
,

1 w "v * a

4;

x
*




; j,

■>

.

w.iA •?-.#

*

*S/.v.-5-.

:

.v.

x

j'

>'•

•

.

■
m

■

•'

-

f

;v.;.

/'

"<,

*

•

/
'

•

'

|

■:

•

^ v

Birmingham, Alabama
f

:

V~

*>

'•

/

V-

'*•-% '*

^

tr.

'

One-half Cents

■

been declared upon

'■

"* "V'M.

of The

:

Common Stock Dividend No. 97

Z

•»•."•*'

■

payable in

■

stockholders

A

"M'

A

regular quarterly divi-

v-; v

cash

and

share has

per

the Common Stock,

American Tobacco

m

^

(37V6t^)

■ »

on

June

of record

at.

Company,

1,

1963, to

the close of

.

10, 1963. Checks will be

business May

mailed.

■

'

■

,

;

/

.

.

•

•

J. R. Waterhouse
Treasurer

,

Regular Quarterly Payment**x
'rfto, the Sibiting funds fo'F V /

iAtx/.iv ,botli .Issues alsd have-been,.-A-

A/A..Av'.>.made.-'"A:'-V

'•

Common Stock" ol Southern ■
^Natural Gas Company/pay-. S
XVable ...'June'- 7 4,^'1963
-to"j
L
Stockholders qf'record-at the
!- close of business
on-May 3.1, • ■

-/>.

| ( v\. A'i<

/

A

* ••?..
I.
i.'A. ,,-PETER' Gr SMIJU X
*

/' Reqord D$ire Aprh,15thv>-'~yx
*"

/*•;•>♦

•> ,,y -'>v *..

regular dividend of Thirty-seven

i -

A A/A.

quarterly
payable-May: 1st' A A -:-

-A-y

.*

DIVIDEND

COMMON

GAS;

dend of 50 cents per share ;S
Sv has been declared art the: S

quarterly •/

" Preferred Stock—.

■

'A:".Both

•

■

»*

'•/••_'••:•' 31

/

j

x -

r

\

$1.25 Cumulative^ ❖.*&'•«•;/
/Preferred Stock—^$1.53 Cumulative,/:"

•

-r?'1
•

A''-

COMPANY
.*

.

■

PREFERRED STOGK DIVIDENDS

y;;.(A\

v'lnNew;
Quarters A/A lM
-f/f;
••*

i

•'.•"

231ST

5

:

'

A

S:

:
r

I

'•

NATURAL

_

life, credit life, and through

subsidiary, fire insurance.

a.

A/'k

SOUTHERN

engaged; in
ordinary
life,

of-

.

;V-3'

■

Anchorage,

Ky., the company is
the

•

V

m

Headquartered

•"

■

:

v

..li.'A"A-v '*"A :
' *S^Crefcisx J* /'j
Bated;.Anrij,'^2-7, 19&3.:>. • ■''*
;

April 30,1963

:

•.

mm aaaavaa m

fa at»«»«i« aniM a a« mm

1

•'.:■•

j

©Air.

co.

:

14

The Commercial and Financial Chronicle

(1806)

Production

Steel

Electric

of the

some

Output

ters

principal

Steel

money cen-

follows:

Carloadings

The State of

Trade

Retail

TRADE and INDUSTRY

week End.

Price

Auto

Production

%

1962

*

.

Price Index

Commodity

Philadelphia

i!226,ooo

"cfty

543,429

Kamsas

i,329I000

are

posted

mills.

by

marketing conditions

7.8

—

distributors

so

vary

widely,

not

revise

will

Steel

Trust

Cleveland

Company's monthly Business Bul¬

flurry of winds

letin's reports on a

moving

the

of its

out

economy

to possible
According to
the Cleveland, Ohio's well-known
Bulletin, "last March was the 25th
doldrum

year-old

on

expansion.

further

cluding

rent,

laundry

tion,

utilities

and

transporta¬

increase

in

services

and

cline

be

to

total

the

for

spent

durables

with

de¬

a

nondurables.

in

Year-Ago-Week

Iron

and

In-

has

There

crept into the market.

indications that auto-

makers are not getting their in-

ventories

,

built

desired

to

up

basis. However, most of the heavy

production all year, backed up by

sheet and strip users Steel talked

even

to felt

Steel

..

levels. Better-than-expected auto

They

but

have

be

to

*

passed

on.

concerned ! now

more

are

a

further increases in produc-,

of the increased costs' tion

some

According to data compiled by .would;
the. American

prices

.

"selective"

anything

Qn

y-

.

are strong

industrial product

boost

.

share

seen

Above

some

see

Reaches:-'.'

26, 196-9, and Surges 30.2%

.

The

care.

Output Rise

Highest Level Since Mar.

cleaning,

dry

medical

and

1963 will probably

year

In

public

to

all

place

to

unable

are

Small Note of Panic
In fact, a small - note of panic

Local

Companies will find it difficult

current

Thursday, May 2, 1963

their intended June business.

i.4 schedules uniformly.

510,980-■+

Thirteenth Consecutive Weekly
The

.

makers,

con-

increase in sheet and

an

advances

cwcajo0!!:: $1I;327!559 ^/si/sIh —ill

Failures

Business

1963

centers

.

strip prices to compensate for the

1

(ooo omitted)

April 27

Index

Food

service

sidering

...

.

into the

has eaten

recently,

rate of inventory accumulation.
:

For

and

intents

all

purposes,

cold-rolled
sheet,
galvanized,
ended April 27 was 2,548;000 tons workers will demand—and get. If wide
plate,
and
some
coated
(*13618% ) J as
against 2,521,000 they have to match any substan- products are virtually sold out for.
production

s.itute,

the

for

week

what>the

about

United

Steel-

„

dollars

all

spent,

three

..

of

month

business-, groups

current

the

Most of the economic sta¬

cycle.

,V

"Year-to-year
the

dollar

paid " out
groups

small.

But

period

are

The months of

April and May,

to

year.

a

the

be

expected
in

are

months

best

An.important im¬

for

ures

petus should come from inventory

total

building in anticipation of

Buying

this

strike
the

steel

a

In evaluating

summer.

possible duration of the cur¬
business

rent

to

that

median

the

business

economy

27

about

or

16 months

been.

43
up

longest

period of business expansion dur¬
ing peacetime covered 50 months

beginning March, 1933. The short¬
est

mated

nomic

the

of

leading

indicators

been1

showing

eco¬

recently

continuation of the

business

upswing beyond

the 27 month average. New orders
for

durable

industrial

and

and

prices of

building. awards,

tistics

stocks

common

either at record
their old

commercial

goods,

levels

are

close to

or

interesting

income

personal

expenditures

continues

and

to

the

1946-62,

important

tors

to

coincident

records.

new

indica¬

Within

March,

up

of

$20.7

7%

from

a

in
ago.

year

Th^ Federal Reserve index of de¬
partment

sales

store

sharply in March to
adjusted

level

of

ary),

compared

ruary

and

increased

seasonally

a

120

to

(prelimin¬

services
faster

of

as

in

114

helo for this segment of the econ¬

is

omy

York

from

expected

and

the

those

the

to

price

creased

71%

This

other

goods.

"According

first

quarter

ond quarter auto sales are
expect¬
ed to run 15% ahead of the first

quarter. The unemployment ratio
in March fell to 5.6% of the labor
force and thereby declined to the

for

average

the

the

depressed

January

dock

scene

economy

doldrums

year-old
further

is

level

news

during
The
on

indicates

pulling

and

as

-

the

the

of

the

use

its

base

for

goods

and

for

services.

all
Of

sustained

a

weekly

chances

household

and

equipment in

slightly larger numbers this

year

than

con¬

in 1962. Iii

ducted in
of

S,

U.

buy

households

new

a

months

the

car

was

8.7%.

expecting to

within the next 12

7.8%, the

last year. Used

tentions

survey

January, the proportion

buying in¬

car

increased

from

tive steel
with

ing

8.2%

to

....

durable

goods
were

seven

house¬

of

within

ers.

was

costs

companies

against foreAlmost

up.

including

all

S.

U.

those

on

items

steel

demand.

•

in

.

.

,

greatest
;

.

.

reported

exceed

;

a

year ago.

durables

for

far

operating
orders
at a rate

of capacity. And

at 100%

coming in

have

is-

that would exceed capacity.

work

and.
i

been

.

of increased consumption of steel, no one is con¬
But in spite

steel mills,

by many

2,550,000

the

•

that

tons

the

books,

result if

and

what will be the

steel labor settlement

a

is reached without a strike.

Mills

now

are

rate

that

than

130

..

operating
produce

would

,

at

a,

more,

million tons in a year,

consumption pre-.
raised from
around .100 million tons for the
year, this shows an obvious gap
between production and chew-up..
With the inventory buildup extending to a much wider range

While

earlier

dictions

have

been

of products, mills

ate'ii6w tal^ng
in

aboutoperations

this

year

May-June

through

—

;

,

„

.

,,

Data

.

,

Lge°rWSthan'
8,

ended

demand

nc.„

nnr,

producers are operating at an an-

7*lf£nT?' °f 1,957'°00 net ^^ nnai

A

'

1

88%

♦Index of Ingot
Week

North

Ending

Apr.,27

Coast

East

Buffalo

_■

Pittsburgh
Youngstown

_

i

Cleveland

.

Detroit

_

Chicago

_

Cincinnati

Apr; 20

133

_

-

Louis_

Western

144

150

;i58

168

172

137

137

150

140

130

130

134

131

industry

;

scrap

num,
,

134

132

135.3

Three

have

prices,

however, show

no

strengthening.
'

of

,

'

signs of their redistribution pattern sends
almost five million tons of steel
In

Buyers' Nervousness

The

steel

that

have been
mills

Years

;■■ ■into
Steel Orders Reflects

strong

average

to Be Best Steelmaking
in

tion.

.

136.8

of

Month

1.7,

directly

'

production based on
weekly production for 1957-1959.

Mjiy

steel

more

across-the-board
an by the steel service centers, or
average of 0.5 cents a pound.
warehouses. The centers receive
Mill product prices
of alumi- about 17% of mill shipments and

;
♦index

alumi-

of

tons

quotations

Rush
Total

smelters

million

from the mills than did construc-

special Iron Age analysis .of sales

higher

126

•/>:

on'

raised

146

129

This is in spite of figures

direct mill shipments which show

The difference is resolved in a

num,

128

final consumer of steel products,
Q
magazine reported.

bowing to the pressures of

129

134

capacity of

tons.

Secondary

.

-'

,

.

rate of 2,i95,000 tons, about the auto industry received
of the industry's

2,488,750

Production for

District—

re,

s

«™ted the six domestic primary
;

,

1

is

production

Aluminum

,

,

the latest week

for

M

dishwash¬

Television set purchases show

now

are

far

as

overtime.

of

„

mills

Sheet

^tee* estimates * the industry that would easily exceed .90% of.
April 27 —the output of ingots poured last week. Operations are capacity./ !
and castings has totaled 36,754,000" at 84%
of unofficial capacity.
t
>
net tons 1*116 1%) which*'is 7 4% "
Steel's price composite on No. 1
Construction Exceeds Autos as
below the Jan! ^-April 2*
1962 heavy melting grade of steelmakSteel's Biggest Buyer
production of 39,702,000 net. tons ing scrap held at $28.67 a gross
The construction industry main(*125.4%);
.Mv/Tton for the fifth straight week.
tained its lead in 1962 as the top
So

reported by

household

recorded

selec-

on

Steel, have generally raised prices

the

specified in the poll, the greatest
gain

by President

Southern '

"Expected' purchases

wages,

price increases qualified

overall

steeL

'of

for, or

higher

admonition

an

St.

:

the

figure

same

strike

a

of,

out

looks like another big month in
steel" production.'
• r

thorny

be

to
two

Buying of. steels is still; expanding. Inquiry for plates is improving. Demand for wire products is
heavier. Standard pipe is moving
more actively,
Demand for oil
country goods is reported a little
better. jTnere's heavier order demand for bars. Demand for fabricated : structural steel • is rising
seasonally.
;■ */ .
.
Look for the 14th consecutive
increase in steel ingot production
this week. Output will slightly

;:j

;

Kennedy's "Go-Ahead"

pub¬

expect to purchase

*

and

second quarter. Now, unless
there is an unexpected. Jurn for
the better,;in steel labor, July

the

'CY,!
V J.
•
vinced that demand is based on
V. '
New. Order Flurry
immediate need. The big question
A flurry of new order activity is how much "water" exists on

is

in-

long

a

sequence

have been enhanced

on con¬

intentions

of

concession

the

such

t

The
a

has

1954

f

buying

so

some

June

orders

turned

down

by the

according

to

Iron

Age,

a

construction market.
entirely

shipments.
automakers

second
jn

automakers relied
on
direct mill
In
total distribution,

contrast,

almost

is

rush

the

remained

solidly

in

place.

total

shipments,

the

con-

trade publication.

struction industry in 1962 rethe next largest increase.
Only their biggest production month in
Since: the, steel price increase, ceived 18.465 million tons of steel,
the
group
of radio. and phono¬ more
than
three
years, ! Steel orders have jumped substantially
This is equal to 26.8% of the
graphic equipment costing at least magazine said.
/--.....as buyers put on the pressure to total. The auto industry received
$100

showed

a

decline

from

last

year."

Bank

Clearings 15 9%

1962
Bank

Week's

clearings

statement forged
ago.

in

latest

the

upon

from

ended

poured

since

tele¬
chief

the

Saturday,

about
the

most

1980,

when

March,

to

11.5

meet

following

a

the

116

., ;1.'r-^ '

time

they

hustling

are

Metalworking

(1)

tiyity jg nearing

an

ac-

all-time high,'

(2) Steel consumption is expanding

seasonally.

(3).

building inventories
against

other round

it is

—

day strike.

because:

be

tons

demand

the

States for which

May to

produce

hustling

were

April 27, clearings for all cities of
United

expect

year

country, indicate that

week

will

Tngot

This
a

Preliminary figures compiled
advices

They
million

enormous

the

ahead of

Steelmakers

they

Above

Volume

by the Chronicle, based

for

"Last year the public
spent ap¬

types of

in

of

fall

experienced

,

sus, consumers

graphic

billion

•

first

the

the

steel

contracting

scheduling

hedge-buying

union
oh

the

*

Steel

appear

ever

—

possible steel strike. Not

rises.

by the Bureau of the Cen¬

cities of the

Consumer Spending

$357

for

;

to

buying

lished

busi¬

expansion.

proximately

for

the

that

to

the

S.

recent

out

ready

plateau

U.

double

were

strike.

flurry of good
ness

1962.

year

exports in February

ad¬

29%

and

quarterly reports

the

1,720,610. Sec¬

were

since

as

sues

demand for steel

nervous

as

a

„

series of

Of

in

autos

through

with

4.7%, compared to 4.1

'

,

of

1946

•

next six months

sales

in¬

for foods, 46%

114 days and

"Dealer

components
services

from

hold

ly-

Ac¬

goods.'

compares

nondurables,

durable

for

price index, the

of all

of 55%

vances

for

main

consumer

1962.

prices

since

which ended their blackouts after

129 days respective¬

the

rise

a

changes have

New

Cleveland' newspapers

in

drop

Price

average

Feb¬

January. Further

period,

whole have advanced

a

than

the

as

113 in

approxi¬

nondurables,

effect,

an

this

billion

that

note

postwar
a

well

against

positions held in

same

entire

durables.

cars

high

new

to

for services, and not much change

pace

retail sales scored another

group,

De¬

companies

advanc-

an

has

Committee,

The

reported.
apart

use

on

progress

no

Relations

man

exceeded

It

is attributed to

crease

dustry

curves

reveals

sumer

the

three

share spent for

highs. The group of sta¬

for

the

1960.

ago

years

The 13th consecutive weekly inT

as

Commerce.

three

•

are

is

,j; Practically

hikes

been made in sessions of the Hu-

week by a resound-

year-ago

ing current

source

by

26,

30.2%.

was

weekly gain

topped weekly out-

back

ex¬

Data

The

compiled
of

all

renewed^ strength/! cording:

and point to a
current

have

excluded.

is

The

1929.

had

"Several

capital

a

going
March

to

the

of

for all three.

spent

homes,

annually.

1962

for

10 months.

was

of

is

"It
in

put
the

percentage

consecutive

which finally

ing

a

series

most products can be expected.

13th

the

ex¬

are

report

output increased 1.1% and it

Fig¬

division

across-the-board

that

quite noticeable.

over

tial wageJincreases, .they

(*135.3%) in the week endr

ing April 20. The week to week

long

amount

partment

of

months
The

down.

the

rather

tons

a

as

plotted

three

usually

changes

penditure,

in

•'

real-:

average

has

cycles

months,
and

helpful

the past century and to

over

ize

national

the

survey,

it is

cycle,

these

for

are

each

pressed

fluctuations

of the consumer's

percentage

major

118.9 in January.

gain over

a

■C/V.V'

to 120.4% of the 1957-59

in February and

over

production

show

This compares with 119.4

up

average.

1962..

en¬

were

Industrial

couraging.
edged

month

the

for

tistics

should

a

possible
of

as

Users

,

convinced businessmen that the ceived 13.476 million tons directly
United Steelworkers of America from steel mills, for 19.6% of
would be a lot tougher at the direct mill shipments.
bargaining table.
This is according to American
reports Iron & Steel Institute, which re¬
nego- ports the service centers received
Rations of the Human Relations 12.269 million tons directly from
Committee. Although there had mills.
^
r
.
" *;V '• '
!

areThis

protection

strike

hedge against a possible steel 16.3 million tons for 23.7%.
strike. Steel users to a man are
Before
analysis
of \ service
apparently convinced the price center shipments, the auto inincreases made reopening of the dustry received 15.18 million tons,
steel. labor contract inevitable.
or <21.9%
Of all mill shipments,
Further, the price increases also The
construction industry
re-

or' an-

price hikes. 'vy>.

coming

is

supported

by

out of preliminary

little of no progress prior to , Breakdown of warehouse shipthe price^increase's, the bargain- .ments to final users/ many of
goods such the
corresponding week last year. other steel product lines. Steel- •ing/haa-.g.ohe from bad. to worse .which buy much- of thqir :steel
as
food, clothing, and gasoline:
. union s
attitude stiffened from warehouses, f accounts ♦ for
..Our preliminary totals stand at makers would like to boost prices
13 cents was
paid out for durable
of some major products negl6ct.ed, t•!! ;/ .^the tehafiget- ii> patterns^ .between
-goods like
$27,687,; when
automobiles^'furniture, -$32,093,948,977:' against
they made, selective ;in-?
^ewV,if\.any^, steel.buyers^direqt mill .^hipmeifts/£n{|^ JinM
and household
appliances: and 41 356,329 for the same week in 1962.
-creases, but they are'not likel^CJtr are;Jsftut' out in Jiine,/raapy>; iu-^destination.; V
-vv;V
cents was spent= for services- in¬
"Our- comparative
summary
for do so for several months—iL thdhv .'eluding-some" of the largest auto-,t .196was -jMe'
each

went

dollar
for

•

spent, about 46 cents

nondurable




possible

ings

to

were

obtain

15.9%

weekly

above

clear¬

those

of

Some

will

be

Users

believe

gradually

increases

extended

to

Volume

197

Number

6260

.

.

The Commercial and Financial Chronicle

.

(1807)
1958

the

that

dustry

led

direcc

automotive

mill

Remove Silver Certificates

both

in

shipments

and' total

the

But

motive

booming

production

turned

in

the

auto

*

re¬

By William McC. Martin, Jr.,* Chairman, Federal Reserve
^
Board of Governors, W ashington, D. C.
'

although

industry lagged in final

consumption.
■

*

~

1

and

following

'

; ;

automotive

Federal Reserve Chairman
silver

construction

at

Containers,

are;

6.9 million tons, and

t <

and

2.7

million

ti

_

,

Y'Y^V'Y1962 Rate
The

auto

passed two

more

stones

week

this

industry

production mile¬
in

its

this

for

vehicle
close.

international

an

silver

backing

built

since

the

and

The

1

by April

5,000,000th

today in

and

week

last

Monday.

ago

-

;

provide

t i f icates

27

at

154,644

with

estimated

trucks.

The

tinued to

1962,
in

combined

although

total

Federal

and

made.

were

reporting

in

week

a

cars

the

unit

when

ago, '

27,814

Auto

week

in

resulted

trucks

output for

the

above

was

the

year-ago week.

-.v/;

Ward's said, fyoweyer, that the
adjustments, in output last week
"as scheduled." Entire April

were

is

still

expected

686,000

to

and

cars

yield

some

125,000

trucks

Board

believes
it

is

that

silver

William Mc C. Martin

as

its

confined

no

need,

our

to

and

currency,

could

use

be

silver

appropriately

coinage.

There is

therefore, to retain the

purchase

provisions

that

would be repealed by H. R.

5389.

As

practical matter, these

a

visions

the

rise

price of silver.
The

nearly 400,000 trucks. /

Passenger

making included

car

overtime at four General Motors'

plants

and

lines.
Of

/

in

Board favors

amendment

the
\\

•

in

pro¬

9.4%;

to

;;Wr

the

proposed
of

3

the

American

Studebaker,

Rail Freight Dips

of

week

561,450

was

an

freight

April

the

of

of

announced.

the

8,043

cars

de¬

a

1.4%

or

above

ponding week in
There

of

the

reported

cars
more

highway trailers

or

highway

(piggyback)

revenue

in the

13, 1963 (which

included

that

This
cars

cars or

week's

was

not

in

a

first

totaled
crease

week

1962,
in
U.

lion

a

v;

.

7

type

T

to

enough to

certificates

be melted

for

down

silver
for

dollars,

metal, the

the required

impossible task of trying to meet
the

resulting

public's need for $1

issuing

cer¬

Reserve

taining

more

silver.

of

Silver

to the

has

and

than

a

would

soon

Federal- Reserve

but would also

silver "backing" from part of our

be

serve/

public's'

the

Banks,

need

the

Where

on

our

instability

economy

does

Silver Differs

Unlike

not

the amount of silver in

stock

part

of

total

our

money

by silver

supply

•a

certificates

gold,

of silver

Treasury. The relatively small maintain

represented

newing

ducers
our

for

a

in

,

re¬

controversy

program

as

of

means

a

favorable price to pro¬

a

silver.

of

Today,

has

economy

many

because

other

uses

for this metal, its market price is
well above that guaranteed by
silver

purchase
ripe

seems

ward

to

free

a

laws.
take

market

The

the

time

this

step

in

silver.

to¬

*Statement

by

Mr.

Committee

rency

on

April

29,

H.

R.

"n

5389,

Martin before the
Banking and Cur¬
Washington, D. C.,

1963.

B. J. Kassel With

Herzig, McKemia
Herzig, McKenna & Company, 50

the

cannot

from

Gold

Treasury's
be used

to

the role of the dollar as

silver

is

not

a

,

Broadway, New York City, mem¬

key international currency, be-r

cause

historic

/%

.

now

desirability of the silver

purchase

assuring

point

no

the

the

over

of the New York Stock

bers

of

is

thwart, rather than

stable medium of exchange.

in

There

re¬

This

might lower its value/ I
would not agree. The fact is that
or

industrial

silver

operating costs of the mints

the

of

only add significantly

been expressed that
removing the

currency

con¬

circulation.

from

short

by

dollar's worth

Consequently,

would not

;'W/

concern

•

•

in¬

domestic silver produc¬

as

falls

consumption in the U. S.

certificate that would be

a

turned
on

tion

Senate

$35 mil¬

Acceptability Not Based

bills

exchangeable for dollar coins

re¬

certificates

stability

en¬

Treasury would be faced with the

exceed

some

those

public to turn in sil¬

courage the
ver

year.

Although

Under

asmuch

deficit,

payments

readily

ac¬

opening of

department
ment of

announced

have

change,

Ex¬

the

unlisted securities

an

under

the

manage¬

Boyd J. Kassel. Mr. Kassel

was

formerly

man

& Frankel Inc.

with

Gold, Weiss-

Lasting Foundations

Of

Knowledge Bridging

'•V'frW"

The Municipal Bond Field
s

V

-'

'

,

•

V'*

;

I

V.

■

•

v. -

'•

„

.v t

*•
»

r;;.>
♦

'• 'i

*

.

••

...

*w.

• ••

'•

•.

.

Come to the 2nd

Municipal Conference

of

the

1962

and

of

IBA

were

above

The editorial proceedings of the Municipal
be

held

at

the

Conference of the I. B. A. to

Pick-Congress Hotel in Chicago from June 19-21, plus

on-the-spot photographs, will again be featured in
of The Chronicle.

weeks

of

for

cars

cars- or

1963

an

61,112

cars

or

There

61

were

Your advertisement

the

a

special supplement

'

in this

special section will identify

your

firm with

important municipal field and the active Chicago markets.

38,9%

For further information contact Edwin L. Beck,

period
class

I

systems-originating
traffic; in .this * year's
58

.

in¬

14.0%

corresponding period of

week compared with
v

of silver went high

Reserve

Federal

not

bills.

$1

public's

estimate

reserve

with

for

the

meet

circumstances, if the market price

reserve

tificates and their subsequent
should

enacted, the Treas¬

to

ternational

If

must continue to issue silver

need

re¬

gold

from the retirement of silver

one

Commercial and Financial

Chronicle, 25 Park Place, New York 7, N. Y. (REctor 2-9570)—(Area

S..railroad
-

Dillon's

increase in

placement

certificates

pleased, therefore, to

am

certificate

notes

to

exhausted.

'

over-all

the.; corresponding

1961.

this

I

ury

because of

Federal

on

A

be

would

as

circumstances.

Furthermore, Treasury purchases

15

26,698

and

above

:

monetary value if

ever

these

of silver would aggravate our in-

price of silver could
its

under

occur

piggyback loadings

218,050
of

above the

5

free

gold certificate

the

32.9% above the 1961

Cumulative
the

notes

Treasury's

Secretary

week.

for

above

V

that

course,

by simultaneously adding an

equal amount to its debt,

con¬

increase

an

10.3%

or

„

corresponding
3,724

25 %

that

the

the tech¬

market

rise

asset

of

•

an

week

ended April

in

in

corres¬

or

i,408

would

depend

on

the

of

a

for

28,413

one

total).

outstanding.

Reserve

the

now au¬

Although the Board is

circulating.

possible,

.in

position*

1961.

15,052

were

loaded with

tainers

are

Federal

"

.

is

will

financial

be¬

week

increase

an

5.3%

or

It

can

preceding

corresponding

but

cars

silver certificates

It

uses.

having been forced to acquire

in cir¬

are

in

buyers,

itself

find

ernment

sounder

increase of 5,369 cars

above

the

1962,'

Federal Reserve notes

other,

who seek it for other

silver

as

$30 billion

culation—15 times the amount of

shift

amount

thorized..

„

low

resulting

readily

About

certificates,

with

hardly be supposed that the gov¬

Federal

accepts

Reserve notes as

complete shift of this

tion to the denominations
*

on

"backing." This is

public

silver

or

more

20 totaled

loadings represented

crease

the

for

competition

apart

should

prices

.

factors

ver

$1 and $2 denominations in addi¬

Build

week.

The

in,

must-rest

mfl

silver

of

buy

in

Association

Railroads

1.0%

or

notes

would

to

Motors,

1.4% Below

revenue

ended

cars,

American

This

certificates

appraisal

it

forced

1.0%.

Last Year's Level

Loading
the

of Federal Reserve

So

acceptance

be

without

sooner

account

"

^

silver

silver.

public

But

Treasury

Ford, 27.4%; Chrysler '

and

i

of

that

this bill is not

market

-

Section

position to comment

expected

for 55.4%;

Corp.

price

will

commodity

stockpile of

assets.

the

currency

making last week, GM

was

6.8%,

Co.

">

.

car

Corp.

Ford- Motor

six

t

the

inoperative today, be¬ //.4v4'4'/■ Backing

are

of

cause

later

that

notes

Roughly $2 billion in silver

gold

"backing" for
that

the recent steady rise in the mar¬

bill,

the

our,

wouid '

u

our

valuable

a

government
this

Reserve notes take place gradual¬

note

to utilize

sary

that

it.

in

ly.

notes.

unneces¬

ance

and

Reserve

silver

further, demonstrated by the fact

Treasury receipts, >

requirement

Bill, which would authorize issu¬

cars

.

; The

production of

than 2,000,000

Federal

the

than

value of

silver in

as

settling

might suppose

the

keep

This is still true today, even after

from the silver

Mr,

because

stock by $500 million,

toward anticipated second-quarter
more

balances.

not accepted

more

to

such

of

means

one

bolster

laws that this bill

Treasury's supply of free sil¬

th&

con¬

adjustments

decline

from

159,587

total

assembly

car

slight

a

28,677

production in like

pace

passenger

and

cars

:

hand,

the

of

history

the

duce

1

output for the week ending April

to

the

as

adverse

certificates

a

.

■'

the

worth

;their

enacted, it is im¬

Reserve notes.

The statistical agency

year in

certificates.

the

repeal, the dollar has beeh

;seem

-from silver certificates to Federal

replace¬

c e r

was

of

were

portant

repeal

ment of silver

1963 model

car

a

notes

response to your

.silver

for

25

assembled

passenger

Reserve

Unlike gold,- silver is said to be

refers

readily acceptable

Federal

than $35 million

more

settler

he

r

purchase laws

its/3,000,000th

Jan.

Treasury's thesis that

replaced with

year.

industry

for

would

ket

.

would

Ward's Automotive Reports said
the

be

to add not

which

5389,

quest for

production and sales records

new

as

:

-

nicalities of. the Bill's tax provi¬
invitation to present the views of
sions, we perceive * no. objection in
the Board
ofGovernors of the
principle to repealing the tax on
Federal Reserve System with re¬
transfers of. silver
bullion.;//
spect to H. R.
"'.:v'";/4
If this Bill is

K./S4;:

by 7.9%.

nation's

Treasury must hoid as

certificates.

I appear

-

,

as

heing

Auto Output Last Week Tops
\

their

tons,

{

should
so

the

Martin points out that silver certificates
of

machinery,

electrical

equipment,

3.9.%.

or

;■

certificates

gradual rate

unacceptable

v,

ment, and tools, 6.5 million tons,

9.5%;

a

agrees; with

necessary gold certificate reserves*

10.1% of the

total; machinery, industrial equip¬
or

-

-

Other leaders in final steel con-

sumption,

accounts with other countries. Gil-

the

silver purchase

the automakers to the top

in direct mill shipments,
V-

ceptable

silver

Througnout

auto¬

1962

:does not derive its value from the

"backing'

shipments from mills and service
.centers.

15

in¬

construction

Code 212)
y.

"

'

"

•

"

*>****'-

year

ytyj 'Canitn^cedFpn page >29




i-cfi

The
16

2%

Prior

losses

could

two

Incorporated

Financial Chronicle

.

Thursday, May 2, 1963

.

.

;•

It the nature of
passed

to

'

v

whether it falls

carry

avoided

by an

and; its

the corporation

on

*-

\

.

associated

with,

elected

Director

a

has been
Paribas'

and

'

of,

•

Corporation, 40 Wall Street, New

harsh

the

shareholders,

•

e. Fleetwood Dunstan has become.;

or

consumers,

^

PaflDclS COfD.

excise tax and

an

on

M

n

eliminate

would

;

A-

York City, in-

consoli- fact remains that present law sub-

t

v e s

t -1..

m e n

such" sat return^ jects a single economic gain with-; .banking firm; A,
could be in an affiliated group to multiple it-has. .been ;*v
offset; by; the: profits of another taxation,'
announce d • At;
compahy; £• The I penalty;; laic; was 11 Other parte - of the internal Rey? -Parib.as.' Cor^A
thereupon conceived: and enacted enue«; Code effectively^' recognize; poration is anA
to offset this. advantage of
the the fact thatan - affiliated group a f f i 1 j at e
o f \[
consoiidated. return.
is a single economic unit .and .that .The Ba.nque

dated ^return.',In.

the loss of one-company

t

consolidated return is recognized in all matters except

vantage of a

be

tax

Whether the corporate tax is in

loss

iaffiliated:tJgroup .filing, a

branches; and (3) ad-

of corporations with numerous

tax treatment

could

Dunstan Joins

intercorporate

the

these inequities.

1932,

realized at that time that the

eliminating

of

dividends

provision was-eliminated.
of

is
\

f orward

with

r

This

States.

United

Repeal

year

was

forwards

President
affiliated
corporates filing consolidated returns. Tax expert's catalogue of
reasons points out: (1) basis for the tax has long disappeared mak¬
ing it an anachronism; (2) it is inequitable when contrasted with

carried

be

the

shown by the accompanying table,

operating

1932,

Starting

years.

effect

array

to

the

for

in

A

returns

this

r

of evidence submitted fully supports
Kennedy's proposal to eliminate special tax levied only on
Impressive

exists.

longer

no

consolidated

imposed

1932.

Vice-President—Taxes

Esq.,* Assistant

Pullman

on *

first

was

Tax Returns Is Anachronistic
By D. H. Larmee,

penalty

penalty

Consolidated

2% Penalty on

-

Commercial and

(1808)

.

peculiar one of levying existing, outdated special 2% surcharge.
removal, Mr. Larmee adds, would do much to augment the forces
for economic growth.
'

the

Its

'

:

Any

such: advantage

-

r'etutns

solidated

has

Kennedy

President

Congress

to

mended

ated group than do separate state-'peared. The present law
the ments. • This is illustrated by the;vbperatiyrg. Tosses' 'to.''- be'.

levied

pealed and that taxation of dividends within affiliated groups be

Not

eIimi"ated-

nation's

the

changes.

legislation.

Both proposals have an

fi!iated

industry

treated

bearing

important
investment

on

economic

speed

to

The

In

corporations

expansion of ma-

placement and

which

$50,000
operative

and
are

,

.year

ba^^^'bffier-"a^" LOS

so'nccessaly fo^a'liTaUhfeTOn-1 Consolidated returns reduce the
Sd full employment To
task, of the Inburden.'bv

this

to

add

levy

*addf>AeEn?J

an

Consolidated

011

re-

economically unwise.

turns is

the transfer

For similar reasons,

rof funds .within affiliated groups
"

Sh0Uld

demands the

flow

affiliated

corporations

national

-growth,

problems

un-

com-

slow

of

underinvestment,

unused

such

as

of

Consolidated Returns

on

mentioned,

assessing

consolidated
matter

of

2%

penalty

returns

has
to
to

concern
umwi'u

ui

ma.lci

Republican

are

.,

„

'
Eisenhower

,

President

reneal

w.
his

budget

iond
1954

mw/looSih
removed the
utilities
dent

nf

ihn

nsm,°.
re,gU
The adontinn

unjust
use

% Penalty Inequitable

other

which

comDanies

divisions

rather

exclusion

in

1954,

of

P "„b
1.C lated public utilities from the
Preai

removal

of

tax.

operate

of consolidated returns

panies.

—-u

through

subsidiary
are

regulated

utilities

poration.

The

taxable

Tnco'me'of1^ gmuf than
A"
of

income

a

do separate returns.

gioup

Businessmen,

;

CltibV-

-

Presiderit; in

i x-; *■>
-

A ;•" /K

York;; and the % Lurich-Glub.;

'-r

1

commit-

;

!

.',,

tee,

nors are

1936

lh

th|
the

tax

a

on

15

..

Courts & Co.,

Stans
•

,

.

Donald Royce and

ates

v-.'r'

.„nitc

nf R„ch

Rich-^^.^

Atlanta, and associ¬

offering publicly

are

-

100,000

at «?r

^ns^s

u„it•

^

Tnr

Hn?

ner

-

of ,one

6%% convertible su^pr-,.

dinateiJ;-debenture- due April ,1,
t973,' and tw0 shares ot common :

General

stock.
,
.
..
nroceeds to the comnanv '
Net proceeds to me company
will be used for debt repayment, .
development of a new '.'Varitiller" .

Postmaster

Denntv

was Deputy ^Postmaster Ge e ah,
t°r two years prior to his assumin§ the . Cabinet position. Alter

feavJng (he Eisenhower Ad,rfnis.
tration in jggj, he served as Presi.

ms
,0

v

t

,

H.

,

Bureau of Budget under President
Eisenhower from 1958 to 1961 and

erbdd
gradu-

income, tax

Maurice

Mr. Stans was director of the

a

of.

Western

d£

only

—*.•

2^%.£ The

graduated

cor-

;

.

farm implement, purchase of additional equipment and invento-

Bancorporation,

anrl

hac

it

with

fnnp

tho

,

^

** "treatment
S,"g,e ^
of

tax

now

such businesses should be equated

^

;,t

f

Q jY) ^/v-

remXXb^

and machinery. Its

•

is

V;; uct

y

..

1

principal prod-

heavy-duty rotary cutters-

in various models under

sold

l •

j il] 1) 11T1

a

trade

registered

name;

Victor
Lublin
on Mayin9't^o
willNew
sector**
with
ninVo
• farm-,-tractor. ^,
quire a -mamhorciiin
membership in
.the woun

340% -1.^1
"higher

which -k
is

7.

■

company

.

peared--.and.-W'itlj.,it J\as gone the
fpuflftation for ^axipg intercprpo-

cannot

v

,

i^JVL3,VGI*vtO
^

Porate rate .ha^Sv all ^bht- disap-*
npnroH

other business enterprises besides
which

-

"1936-1937; the Bond. Club* of New

•the

i

should be encouraged rather than
re-

corporate:

com-

penalized,

A consolidated tax

.However, when

ated

many
•

was

tcrcorporate dividends was enAn- tes, and vice-chairman rles, and working capital.
o
djscourage.tax avoidance t
and direetor^
united California .^Headquartered
at Selma; Ala.,:
is engaged in the
^
.™»ltiple
incorporations.
The
Bank until last August
manufacture
of
farm
implements
rate- however, of that tax was
, v ,5

op-

usually required to

However, there

tive

^#101-5

1916.

enacted

o£ the 2% penalty was
deare
taon
cid^PZ the tact that such

businesses

disappeared;

regu-

nf

recrnnmenXitlnn eration

on

Tjoxr^„

subsidiaries pay no such penalty,
The

•

for' any

except- for a brief period under

h

th

than

he 3

which

senior partner;-

transfers Of funds and. not taxed,

and

can

of

iJercoraorbte^divideiWs ^\v

companies wmcn can ana

uinei

California,'
bnr
May 1st a'h4;

Othe r
intercorporate ' dividends - senior, p a f't-

has long since

L-. do operate through branches and

A

A start

penalty with respect

Kennedy's

The

in

C?,6 WhlCl!

»

tax

legal or economic reasons must

recom-

the Gbnghes's

bv

historical,;reason

The

"

w

of-

' suggested "that Maurice H.'.given- separate S tans: as- a i-

Intercorporate Dividend Tax

audited.

are

operate through subsidiary corporations are subject to the tax.

message

would
wTuld
comnlete
complete th?
the

this

separate returns

when

items

these

ex-'

New Yoric Municipal. Bond.

-r.—;
and a member'"
-of-the execu-?

spent

is

effort

and

surtax

|

iff the'state Of"

..crdt^s

Ad-,

npnuitw

5.it .;is

consideration

The 2% penalty is inequitable,
°nly
those
companies
—•*,
——
aa...^a...va which for
w'

a

Banking; and. Investment

°^'

Exchange, the oldest incor-

iach have- their o«n pari notitided the",
Wftfefive history' Con- admission 'o f:

se(i(lentl

the
me

been

ministrations.

mended

and' the

^

frequently complex and

time

on

both
uoui

Democratic

and

double disadvantage. The

t

loans, service fees and dividends.
These

inequity

the

a

factors^instead. they cojnv

ng

inter-company^

scrutinizing

As

.

consolidated

A

offices.

Service

much

capacity and unemployment.
Penalty

auditing

than

among return
minimizes the need to
This free audit inter-company transactions,

needed to

critically

is

bat

of

as

should

office

less, work

much

funds

hindered
flow

Service

afmiated R, Staats & Co, 640 South Spring ^"".cipal
the"Pullman Street, members of the New-.'YQrk,

Tr,rirkvrinvQf^ ffmun AA/hirth- wnnlH Stock

*?5?ur?«ed'- npt dis- f
any returns which may be scattered in various Internal Revenue

of earnings

use

;

c0rp0raR0ns sucb

Efficient and effective

couraged.

.

collect-

V^Ue Service m

th^^ax, and auditing tjie ref"om a^eXaWntCTarLvenrre

Chairman of the Association's ;
SecurUres^Committe^ ;

ANGELES,- Calif. - William

aagroup ■ of

omy

tional

_

.

first

the
additional
depreciation allowance.

computing

_

_

in

operative

limitation

$10,000

s^nceCoSSn

t_

ated group is treated as a single
taxpayer for the purpose of the

provide the capital for the re-

to

example, an afcorporations is
single entity for the

ment

the tax burden

investment credit,

makes it difficult for

relief

in the application of the investcredit. Further, an affili-

corporate tax
enough burden,

of the enactment of the

spite

pen^Ity';was

in

this

of

$25,000

of

limitations

present 52%
oppressive

an

a

as

but

fact

For

group

purpose

growth and create jobs.
is

in

unit

the enactment of certain tax

corpora-

benefitted by these

Rons would be

af£iIiated

a„

hlCs "cognLd

Congress

of

Most

„

on,

eco°nomic

an

Vt.h e largest
carried"^1??-"°l';>he. • law:yrelgting to;-the, private bank ;; J

~

consolidated

the

on

°f that gr^p. should.be'Tax* free. ..des- Pays-Bas,

permits

back three -yearsand forward five h^i^tipn .
.organization^ of: a*in France.- ;,,
E. F. Dunstan
years: This is a far'., more liberal sobsidx^y • yvhejc^ the transfer of .'.. Mr..Dunstan
arrangement than 'th-at which
. regarded- as merely ye-, retired in 1961
was repealed in 1932 and 1933.:■ ■-•■shuffling within.-^single economic, as a*.Vice-President;,of>)Bankers
Although President - Kennedy's gr°"p and o£ n° ^ consequence Trust Co with which he had been
proposal for the repeal of the 2%
We-beUeve.that elimination of associated since 1921 He is a Dim a de contingent ^df ^i^^^'gish na"
uponthe enactment of legis ahon
^
head_on*gand re_ a member of lhe National Panel
which would hmit mmmff l^ated
the American Arbitration Asgroup to the surtax exemption, it
£ inorpasGd ;
--A.! A\i A"
^
for increased investment and job sociation, and United States Rep¬
resentative
of
the
Boy
Scouts
is recommended that the 2% penr
.
World Bureau.
alty should be repealed regardless
;
;
of whether any legislative action
""Statement by Mr. Larmee before the ;. During the early years of the
is taken to limit the surtax ex- ^asMngS^D.a<;.d ^e®ns C3mml*tee» World Bank, Mr. Dunstan was
chosen as one of its officers and
emption.
Awas its first Director
of Market¬
It is submitted that before the
^
. • •.
enactment of one tax principle TA^YVj T?
Of)
ing. A member of the Board of
Directors of the Investment Bankshould be made contingent upon
••
.
* .
the prior or concurrent enactment y i
•,
-tit -rj Q.l „
"Association""of""AmericaArt
of another tax principle, the.tax j^ClIIllt/S 1VI. £1.
fie served brevioUsli as

surtax of 2% fact that, almost without excepnet tion, financial reports to stockincome of affiliated corporations
holders are on a consolidated
filing consolidated returns be re- basis.
;.
additional

present

COni ^ flow of assets among members de Paris, .e.t A

of '

recom-

that

-

•

has now -disap-:.

York

than in '1935.:

the

"B u,sh

any standard

Stock Exchange, and will be

S-& Correction
at -«»

vqunamu.

reflect

the

income

of

an

The

historical

^

Present

V

for

reason

if

•

the
ie

subsidiary

,

u. s.
■"

;Subsidiary

,

United Kingdom
U.

S.
,

-

tax
..

-

after

..V

tax---

foreign

53.75

tax

a-,-..

Amount distributable to

TJ. S. tax

on

$100 00

credit
.

.■

Were

incorporated

in United

;

Kingdom

,uoq,„t.v

.;

53.75

;„U

which

v

for

j

4

economic- -and

.sound

can

and do

-..

„

-,

..

.

•

.. ..;

''Businessman's' Book- '

-the

of; the;. Financial

5^*, xc&an®e/-'.* *,shelf", section
-V U

■

■'

'

'

'

.

_

-

.

'

'

a

id

'

«.

^Chronicle of April 18 it was>

; 'r

correctly- -indicated that thq-

.

--

in--.

price

-•

operate

.

>

v

creates*; inequity

-

in

taxation

parent.$46.25
V

$46.25

3.61

t;have,appoinfe,d Robert Volpc gen-,, prices are available from tilt; ttyhjs..incorpoi^ted--eTal--manager^v0f4he'^ir-m-.r
lishfer-,on Request-f -■

subsidiary 'is"preserttlyAsbeing pe'-




•' ' "

legalreason^ £ .operate v, through
subsidiary ^corporations; and those^
which

„■

.,or-

—0—
^
■;

distrib. after fgn. tax credit

...Net after, all taxcs..T.r

•

.

branchfiis ,'a'ricl-

$100.00

'

.

v,

'

Assumed income

tot

in taxation between those entities

affili-

r.

$42.64

$46.25

,;.nalized-because- it

. .

slA'.

Volume

197

Number

.

6260

The Commercial and Financial Chronicle

.

.

.

(1809)

ium, Ltd., and Alcoa

The Market... And You

also rel¬

are

FROM WASHINGTON

atively lower cost producers than
the large integrated steel makers.

BY

STREETE

WALLACE

Although
metal

several

The

last

few

the hardest.

how

the

points

stock

always

are

And that is

precisely

market

to

seems

be operating these days.
The

trend

is

still

upward

and

tinue for at least the short-term.

nation's

have

to

its

economy

turned

rahter

the

eral

months

ing

is

sev¬

Capital spend¬

ago.

rising,

retail

sales

are

poised for hew; highs and

corpo¬

rate

on

profits

ascent.

Most

porting

better

those

that

be

can

generally,

are

industries

are

earnings.

than

period

toward

of

set

17

718,

all-time

months

utilities

ago.

already

are

will

far

index tops.

this

voicing

this

fore the

include

go?

many

that

highs be¬

new

accompanying
definitely
the New

is

York

the

often

Volume

is
on

Exchange in April

highest

for

1930. v
Total volume

that

month

.

of

106.5

million

the heaviest since last

was

turnover

and

of

April

74.7

1962's

in

recent

Exchange

of

interest

and

traders

Amex

sues.

zoomed

in

to

turnover

last

than

more

lower-

the

speculative

more

is¬

month

million

25

hitting
better

the

on

unverified

•

Oil

on
ru¬

also

are

highs mainly

their

on

These include Sin¬

rose

of

59% from

rose

ago); Union

While

shares

a

year ago.

Odd-Lot

a

Oil

of Califor¬

18%)

and Stand¬

Ohio

(its

of the oil

some

narrowing.
lot

is

gap

the

on

a

public's

Yet

lot of traders

a

remem¬

hike their taxes,

apparently

profits

offsetting

firmer

petroleum

has

also

higher

see

bolstered

hopes

rather

than

at

the

shares in the first quarter.

stocks

lective

still

have

price

by

formly

Their

first

been

uni¬

have
when

poorer

with results of

Steel's

a

tributed

to

get

announcement

years

stock

casters

that

expect

will be minor.
terest

The

position

is

bullish

strongly

considered

sign,

it

30-year high

shares

Most

of

last

much

<pf 6.8 mil¬

November.

at

came

watchers

also

are

hopes

on

Even

unfavorable

basing

economic

an

first

their

upsurge.

quarter,

earnings have generally been
companied
company

profits

by

observations

executives

will

mpve

that

upward

ac¬

of

is

some

what

the first

the

1962

high
the

icals

latter.

Ten funds sold du Pont (it
a

major

necessarily at

with

is

only
its

1962

depressed although output is

ings

have

brought.

One

stumbling

&




Theodore
had

not

shutdown

York

other

to

might

Steel

users,

building

materials

tory

in

to the

cutbacks

is

consumption

Companies
make

be

needed

brighter

urging that

by

and

run

particularly

by

with

he

continues, even ah uneasy peace,
it is easy to forecast the
speeches

because

firmer

towards Germany.

attitude

as

a

fact
is

that

not

next

Democratic

his

his

vacillation

and

hesitation

policy towards Cuba.

tack is

coming from

in

conven-

Mr. Wilson in 1916.

The at-

few Demo-

a

Mr.

Wilson's

notes

to

tactics,

Germany,

erals but mostly it is coming from

ber, his demands

Republicans.

powers

History

1964.

occurred

repeat

may

Assuming
between

has

war

Cuba

and

the United States before, Kennedy
will

the

get

benefit

out of

us

not

mean

We

were

months

at

will

having

be

no

war.

within

war

after

of

But this does

war.

there

Wilson

three

began

There
tween

is

the

difference

United

States

and conditions of those
we

were

the

the

world.

at

most

the

drop

When
nated

of

Mr.

in

could

we

nation

to

go

in

war

Wilson

renomi-

was

Governor

Martin Glynn of New York, spoke

eloquently
of

of

the

neutralism

to

war.

Wilson

keep

policy
out

us

of

policy

bucklers,"

"but it'does

the

or

said

the warring

United

States

"without

peace

unavailing. Finally,

marine
to

warfare

sent

Mr.

Congress asking for

tion of

war.

There

to

Wilson

declara-

a

are

many differences be-

today and 1916.

In addition

being prepared, Russia has

illusions about
go

to

We

war.

World

War

I

if

showed

II

and

this

strong stand against Russia in the
of missile bases in Cuba,

case

the

last

there

ever,

criticism
among

of

the

six

months,

has

been

Americans

Cuban

swelling
and

exiles

able

its Communist Government. Pres-

ident
Kennedy, answers
these
criticisms with statements of 'the
economic

other nations of the free world,

an

jingoistic

no

empty

chair."

Jennings

Bryan
the

at

said:

"I

mass

have

a

will

America,

Castro's

keep

of dele-

us

his

is

the

subversion

in

our

to the south of

sister

nations

us.

A

TAj™ PgiriP

be-

supporters for

—

a

W&hhw

dUlIlb rdlHU, YV UUDUl

out—

now

patience

Alex

has

Wis.—Alexander

become

associated

for

policy

with McMaster Hutchinson & Co.

—

Three Fiscal Months Ended

25,

1963

March

26,

1962

conver¬

repairs, hydraulic turbines and other work $ 54,393,142

$ 56,141,082

At March

At March

25, 1963

26,1962^

$331,779,177

$435,751,027

19,010

19,885

major contracts unbilled at the close
«

.

•

•

to

Equivalent number of employees,

well

may

products

in¬

on

q

.

40-hour basis,

working during the last full work-week of the period
On March 26, 1963 a contract for the construction of two
of the

:

Navy, increasing the backlog

on

nuclear-powered attack, submarines

that date to about $385 million.

was

obtained from the Department

The

presents

picture.

announced

better chance of

a

Price
may

;

Company reports income from long-term shipbuilding contracts on the
percentage-of-completion basis; such income for any
period will therefore vary from the billings on the contracts. Contract
billings and estimated unbilled balances are subject to
possible adjustments resulting from
statutory and contractual provisions.

slightly
rises

have

By Order of the Board of Directors

al¬
a

sticking. Alumin¬

April 24, 1963

R. I.

with

Paine, Webber, Jackson & Curtis,
Marine Plaza.
He was formerly

'•

Billings during the period from shipbuilding, ship

as

tion, along with Latin America, to

thanking God

Kennedy
by

are

Cuba,

this country's determina-

MILWAUKEE,

President

the

prevent Communist incursion and

of war."

ing hailed

as

Latin

upon

and

a

as

with

agree

well

President who has kept

out—who

us

but

including

placing

he

pressures

called

convention

American people in
we

been

State

of

to speak by a

gates,

William

had

reporter, when

newspaper
upon

And

who

Secretary

was

has placed

war

March

higher

up

Glynn,

growing.

with

this

country, because of what appears
to be only a waiting
policy —

Newport News Shipbuilding and Dry Dock Company

•

now

in

side

and

.

v

how-

the land at whose hearth and fire-

waiting

period

our

swash-

satisfy the mothers of

calmness

of the

in

in

and

to the disadvantage of Cuba and

Governor

watchful

Estimated balance of

no

being afraid to

our

satisfy

not

may

fireeaters

>

a

num¬

waiting for something to turn

•

"This'
the

upon

the

firm

in

German

In

York,

were

his

many

announcement that
there would be unrestricted sub-

hat.

a

New

today

Today

powerful

We

be-

days. Then

unprepared.

are

victory"
the

tween
vast

a

let

to

frame for them

his

second term.

his

and

war

peace

Today, John F. Kennedy is be- tion, acclaiming him in words
ing similarly attacked because of similar to those used in praise of

his

.r ;"A

Cuba

atomic

an

Russia^ And if the

the

at

;

invade

we

the risk of

over-all

be

the

as

himself want to know if his critics

of

The

Brighter Aluminum Picture

ready

are

attack

lyst.

are

stocks

'

Aluminum

them

is

by

us

point that inven¬

money

spotty

Thomas

days

President

he

registered representative and ana¬

sions

event,

prices, but the pattern
as

an¬

the

of Major Contracts and Number of Employees

•

any

should

more

with

and

early

and

Quarterly Statement of Billings, Estimated Unbilled Balance

how

or

long shutdown.

the

Exchange
J.

the

of

exchanges,

Louis

associated

biggest obstacle to expanded steel
profits

Clark, Inc., 1401

Stock

that

Pa. —Janney,

If

is impos¬

mean

will

a

of the

those

1914

predict what

their

up

those

members

leading

..

long it would last.

fast

E. W.

They

kept

harsh

a

in

Wilson.

"He

Roosevelt
taken

adopted

second

decides to

the contract, it

at this time

of the "Chronicled

Street,

now

block.

the steel workers union

volved.

promi¬

Republicans,

under

Wilson

since

Even

the

& Haas,

time coin¬

any

as

slogan

war."

Wilson's

three year high.' Uncertainty

sible

this

only.]

generally

are

BARGERON

shade

a

:'A%.
steels

those

presented

are

New

ex¬

sev¬

be

disagreement

of

who.

of 78%.

under

main

year

[The views expressed in this article
not

the

a

bought it.

With Janney, Battles

its

above

high

a

were

Walnut

points
•

high for the

Battles

eral

other

new

Woodrow

been

led the buy¬

wide splits among the

were

week

around

The

sold

generally favored but

were

author

time when

a

only

40,

were

heavily

oils

earnings

its December high, and

of 48.

survey

largest funds

most

this

now

with

quarter earn¬

One

electronics

PHILADELPHIA,

over

-

Yet there

cash.

U. S.

the general economy.

over

of

and

among

now

their

"Zip-less Earnings"?

shifting portfolios

ago.

barely

was

there is not

professional market

to

Steels

nounce

its

invest¬

bought $481 mlilion while selling
$401 million in common stocks.

low

a

especially

shifted

because

lion

not

reaction

huge short in¬

from

its

has

any

fore¬

of the

1916,

on

investors, kept

activity of the

up

Much

out

December high of 48, and well be¬

reopen

professional

smaller

'noted that 50 of the

,

in

had

rather than any determined effort

They

compared

year

of its worst first quarter
15

be

can

ment company trading was also at¬

cide

to

way

CARLISLE

elected President for

itself in

Funds

increase

the

institutions.

oil

of

Steels

long

a

rise.

profits

quarter

(

most

this

and by stepped

.

Still

Shifting

of

■

beginning.

'

traced to switching to lower price

do

Profit-Depressed
Steels

the

market

Back
was

av¬

this threat. A. Air Products, and American Cyprice structure anamid.

stockholders.

a

bull

fairly

daily turnover of 4.1 million

erage

Rohm

is

a

over

liked

at

stages of

the

increase

Better

investors

get in during

later

consistent

one

ber that the public often tends to

the

Big

a

while only

part to get into the market these
days.

Yet

made

National,

There is obviously

interest

more

the

days.

week)

Sam may

its, has failed to benefit. Its stock,

purchases,

recent

high of

ing side. Airline issues and chem¬

companies

change of heart for the little buy¬
exceed

few

a

have indicated great concern that

Trend

and seller. While sales continue

of

there

ception to the drop in steel prof¬

to

a

Board volume has shown

while autos and

earnings

Odd-lot figures also show a slight

er

in

Uncle

its

million

widely

It has jumped to

'

profits.

(its net

Big

highs

new

petroleum stocks

new

the

soared 55%).

in

Changed

helped

merger can¬

stock

clair) its profits

March

22,5

fluctuated

days.

Part

Superior,

of

•

Other

shares from less than 20 million in
and

has

exchange volume itself

The

go to benefit from their recent se¬

also active, illustrating a re¬

priced

priced

mors.

of

only 65.2 million.
American

oil

weeks.

strength

million

tally

These

didates has been especially active

May and contrasted sharply with
March's

for the first

by possibilities of take-overs. The

an

Turnover

sign.

some

term

S t o ck

Candidacies

search for crude

approaching.

growing.

since

vival

the strong¬

Oil stocks have also been

nia

investors

favorite

for

not

ard

The appearance of more non-pro¬
fessional

missing

oils, chemicals, autos,

Oil Merger

evidence that

be

may

former

a

Erratic Exchange Volume

electronics, and drugs.

year

more

the

highest

is out.

year

climax

see

of

been

;

space

profit showings

the

optimism

more

Yet there is

were

and

period.
industries with

among the market leaders.

pinpointing the

are

the Street will

shares

year ago,

Yet only half the

Board, has moved to

advance

has

in

The

BY

the

on

re¬

highs.

of

of the

2%

735

and

^shares

a

Ahead of the News

.

Ap¬

to less than 4 million shares in the

slowly,

new

closing high

new

chartists

was

5% from

quarter have also been prominent

somewhat

Aluminium

of

return

time.

Gfross National

more

way

the

a

expected to turn in

target in their forecasts but

a

cover

.

most active list this week marked

that

industrial output climbed 3%

wages 2 %.

.

out

when the
rose

able ground in recent weeks.
pearance

<

declining profits

Product

1962

nearly 6 million shares and sagged

Chartists Bullish

are

year ago.

still

their

highs, they have gained consider¬

re¬

est

above their 1961-62

Few

leading

their

announce

steel,

within

How

to

Nearly

100

as

albeit

Hails

a

These

The Dow-Jones industrials at last

peak

than

more

companies

Even

not, such

are

making its
week's

would indicate.

of

under

light

are

com¬

Meanwhile the market is relent¬

came

in the

these

panies had higher profit margins

favorable results for this quarter
than last.
:'V

lessly,

third

a

less

points

of

stocks

the

....

*

zip than the improvement

from

lethargic state of

quarter

showed

mits have reported lower proftis

appears

corner

first

feels

earnings

corporate

economy

most observers expect this to con¬

The

service

nent

both

company

17

FLETCHER, Financial Vice President

18

(1810)

The

this year.

BANK AND INSURANCE

to

keep

This Week

the basis of experience

on

and policies are

First

quarter underwriting

mid-winter and

Quarter

It appears

Fire

Casualty

&

likely that the first three months of 1963
the worst quarterly

remembered

as

the

casualty insurance industry.

fire

ments

Underwriting

Insurance

and

not

are

yet available,

Results

the

well be

may

tense

While quarterly state¬

insurance

unhappy conclusion.

every

ing to

section of the country lead to this

poor.

record

a

amount

high

recorded

losses of $142

in

such records.
record

the

million,

comparable

million in January

recorded by

ever

of $405.9

higher than the
of 1962. Estimated

figure and

total of $137.4 million

There has been

nearly matched that

the

Institutional investors' holdings of
New York Stock
Exchange stocks
continued their

substantial water

Homeowners

damage to

and

steady rise as a
percentage of the value of all Big

commercial

Board stocks in

nearly 19%

lines

continue

to

be

the

year.

Auto physical damage had

The

but

year,

executives

of seat belts

feel

is

an

trial and mercantile establishments have been lost. Fire losses

usually the heaviest during the winter months
weather

overtaxes

number of fires

as

extreme

as

The

better, although the more extensive
offsetting factor.'
::•

nies

past month. Losses during the third week-end of the month in the
east

alone

the first
fire

estimated

are

few

months,

loss year. Total

at

losses in 1962 reached

002,COO, the sixth consecutive
Fire

insurance,

problem

to

The

years.

decade

and. casualty

line

has

shown

insurance

virtually

also

$1 billion.

year over

fire

annual

high

high of $1,265,-

new

industry

growth

no

been transferred

to

in

SELECTED

INSURANCE

Dec. 31

Mar. 3!)
•

1963

Aetna

Casualtyl_____ $80

Aetna

Life

of

highly

'

11163

■

Current

Estimated

(Decrease)

Price

Dividend

11%

$96

: $1.00

1411/2

15

151

1.80

1.8

38

1.80

4.7

(1)

36%

5

Continental

Casualty-

75

77%

3

Continental

Insurance

59

61

3

Employers Group

148 ■■■;

11

156

0.6

76%

1.50

2.0

61%

2.20

3.6

An

by Franklin
omens

pointing

building.
A

pick

72

1.60

2.2

76%

1.15

1.5

tivity

Fidelity & Deposit...

61

67

67

2.00

3.0

high level

321/4

34%

361/s

1.30

3.6

give Long Island

611/2

59

0.4

look,

General

America....

General

Reinsurance.

551/2
200

Falls—A

(4)

57

3

214

7

41%

42%

Govt. Employees

601/2

Govt.

Employees Life

16

71%

.80

1.1

27

66

.12

0.2

Gulf Life

471/2

47%

6

341/4

Casualty.

24

27%

15

110

124%

13
11

...

40

U. S. F. & G

Life—

...

(2)

71

.35

9

34

1.28

"Long

3.7

.74

2.8

125

3.00

2.4

41

1.32

3.1

25%

11

65

1.28

1.9

461/4

53%

16

51%

1.00

1.9

45%

48

5

50%

.80

178

11

than

view

61

61%

1

64%

76%

1

74%

of

missile

Survey of

22368-9

first

1.6

1.80

1.0

1.32

2.0

*

.20

/

.

.

Report Available

Bankers to the Government in
ZANZIBAR

PAKISTAN
•

•

CEYLON

SOMALIA

•

•

BURMA

EAST AFRICA




~

re¬

and

Suffolk

on

0.3

from

Stock

American

BROADWAY, NEW

home

or

of

Exchange

seats

($625,000,

utilized

on

1962

9.5%

in

all

but

areas

rise

in

the

the

home

Most

in

of

*

Franklin

in

19.5%

1961,

and

cascaded

into

gain by the end of 1962.

buying scored big¬

strides this year, up over 8%
January and over 10% in Feb¬

ger
of

compared

ruary

New

cars

to
the

were
so

a

year

ago.

main

far is

item.

Suffolk

number

of
a

weather

was

new

ahead of last year.

stocks

ber

sales

also

are

the

firm

County,

to

however,

the
was

strong

especially

and

Franklin

ac¬

cording to the bank, "the most

en¬

1962 decline

employees

12.7%

in

mem¬

other

than

representatives—from
56,137 at the end of 1961 to 49,172
at the end of last
year—the total
population of the Exchange Com¬

munity

came

at

end

the

to 90,900.
of

1961

Members, partners
in

ers

member

The total

was

95,500.

and stockhold¬

organizations

to¬

taled 7,598 at the end of last
year,

from

up

7,203

the

year

before;

representatives

totaled

from 30,628

up

lier, and 16,325

a

year

seven years

lines,

ear¬

earlier.

rang¬

9%

up

over

a

year

Check

ago."

sumers

3%

spending

in

the

first

found.

over

Its

Index

con¬

summed-up activity with
rise

rose

1962,

the

Franklin
in

their

net

lion.

For

bank

Business

February

gain

to

from

billion

the

are

and

Other

in the
The
of

re¬

1962

Census

showed

that, in the decade since the first

Unemployment, riding the 5.8%

such

count

was

of the labor force in the first two

ership in the U.

months, drifted off to

some

an

estimated

5.4%.

A year ago,

it

in

rise

in

retail

the

1952

was

Part of the decline reflected

employment

for

Easter.

made, shareown-

S. has grown
by
10 million—from 6.5
million

Census to

It

100

was

years

after

years

its

million

ago,

"New
Board"

York
to

and

founding, that

Exchange changed its

Reuben Rose Co.

17

in the latest.

Stock

name

&

71
the

from

Exchange

"New York Stock Ex-

.change" (on Jan. 29^1863).

Elects Boland

It

was

prices

change

not

were

as

until

on
the Ex¬
dollars and fractions of

Vice-President of Reuben Rose &

quoted

Co., Inc., 115 Broadway, New York
City, members of the New York

their stock 3-for-2

Stock

Exchange.

1915 that stock

quoted

Long

levels."

fourth

in

steady

over year ago

billion,

of information

Exchange's

Shareowners

year

con¬

part of 1963, climbing

$351.4

$17 billion,

examples

Islanders' income continued rising

1961,

bil¬

compa¬

1963 Fact Book include:

James M. Bolaiid has been elected

oyer

$17.9

listed

spectively.

146.3

end.

a

some

domestic

nies, the figures
$293.6

from its 1957 base of 100,
making

six-point

income

.

tinued hike in income. After 1962's

close to ,5%

from

appli¬

among

recreation

change

spending,

rise

up

The

Better spring

expected

consumer

7%

market value of

was

registered

32,555,

"Department store

5.3% in March.
were

apartments

year ago.

pattern

companies, banks, trusts,

foundations and the like—the Fact

registered

running 5%

.

in the first

Specialists irf Bank Stochs

position,

a

,

While single family homes

couraging sign has been the

Y.

have

Nassau

limitations

space

added.

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

also

quarter by both business and
ago

crimped building in recent

less than

busi¬

pension funds, investment and in¬
surance

listed

"Nest

1963

year

period.

centered

9%, in

Exchange

,

the Island fell 26%

where

winners

cash

"Instalment

•

a

decline

for

(1867 and 1878, respectively).
On
institutional holdings — by

ness

Book notes that the
year-end 1962

and

Total units in the first

the

Behind

N.

prices

stu¬

contents

figure of 18.9% of

ances

aircraft

building, "a slow starter

behind

the

Exchange
Exchange

YORK 5,

Its

Exchange's staff was 1,575.
Exchange listed companies have
some
14,503,000 employees. Their
ing from television sets and radios
assets
total some $371.2
to
sporting goods and cameras.
billion,
by both industry
their revenues $307.3
Total February sales went
billion, and
than three-

more

over

two months

UP

Request

Members

13.4%

a

quarter

years.
-

Commentary

Stock

the year ago level

over

this year.

.

Members New York
120

range

others.

favorable

Auto demand

Dissenting note, the bank said,

was

Laird, BrssELL 8 Meeds
I

and

first

eggs of individuals
in savings accounts had increased

a

Brokers, Dealers ™"

Ten Year Histories &

AND THE RHODESIAS

bi-monthly

period, Franklin National found.

BANK STOCKS

MINERVA LONDON

•

its

time,, it noted that

same

plants."

erated

LONDON, E.CJ

Telegraphic Address

ADEN

said

and commerce, another indicator
of the business activity
level, gen¬

v

10 N. Y. CITY

INDIA

in

Nassau

Electric power

"""

Branches in

bank

132,000, with

have

Head Office

•

year

quarters of them in

and Institutions

UGANDA

zip this

more

the

the

County
For Banks,

•

of

At the

the

Telex Nos.

are

County economy.

National and Grindlays

U BISHOPSGATE,

last,"

consumers

Franklin Letter, a

•

181

76

Bank Limited

dents

indus¬

prospects

noted.

a

Island

spending with

0.5

64

160

National Bank.

1.3

311/2

Travelers

Franklin

1.20

Hampshire.....

...

the

923/4

Ohio

Springfield

bright spring

a

to

8,000 jobs

New

Trans America

according

to

2.0

7

57

spending

consumer

2.00

90

securities

journalists,

uncovers

Bread

99%

69%

to

personnel,

survey

stronger

"manufacturing is running about

84

eighth edition, the
is designed as a
quick

Book

try

issued April 26,

was

its

economic

ac¬

3.1

71%

in

Island's

continued

2.40

Liberty Nat'l. Life...

M

with

77%

4

St. Paul F &

combined

19

98

Long

improvements

1.8

94

36

1.0

marked

up

1.32

Insurance Co. of N. A.

...

3.3

.50

1962,

reference aid

during the past month despite
underwriting results during

Economic

713/4

721/4

Reliance

2.20

Bank.

8

60%

Phoenix

653/4

47%

of

73%

Home

■

0.9

70

64

Life...

0.9

2.3

59%

Jefferson Std.

1.00
2.00
1.00

61

63

65%
211

-,

43%

47 *

—

.25

64%

2

Great American

Hartford Fire

7

taken

in manufacturing

up

9

'

of

With

6

Franklin Life.

The

A;/';Y in 1949.

66%

Fireman's Fund

1963

Fact

in¬

/

72%

10

is

National

61

KENYA

were

in

Spring Look

optimistic view

681/2

-

these companies.

self-

Now

Makes Long Island Glow

1.0%

.90

all

Exchange's annual statistical

end

unsatisfactory

A Bright

Federal

•

rise

file

all-time high in
1929), to the dates
when tickers and
telephones were

>

371/4

_____________

133

ADEN

undoubtedly

moderate

which

are some of the informa¬

memberships,

Yield

$89

i23V2

corporations

portrait, its Fact Book.

STOCK PRICES

General-

S.

The

on

edition, covering data through the

multiple peril policies.

Increase

Connecticut

U.

latter half of 1962

increases

factor.

compa¬

listed

are

tional characteristics shown in the

past-

ratio reached 103.6% in 1962 and will certainly be higher

Glens

encouraging

stock prices has continued

stocks

total for

These

f.

incurred in

were

Boston

dividend

the first quarter.

recent

the

over

Numerous

significant

a

indications

major

a

1958, 1960 and 1962 with only small profits
recorded in the two intervening years. The combined loss and ex¬
pense

reports.

surance

steady profit producer, has been

the

volume has

as

Losses

once a

a

record

a

employees de¬

1,120-odd domestic

1,100,000

recovered, rising net investment income and
the mixed underwriting results which were
reported in the 1962

$25 million. In view of the totals of

1963 is almost certain to be

the

handle

increased

reports with the U. S. Treasury—
have assets equaling about 30% of

the stock market

as

other

PRICES

over

to

Exchange—while representing
only about one-tenth of 1% of the

apparently impressed

by the recovery in liquidating values

and

the

exceptions, the common stocks of both life and fire
and casualty underwriters advanced in line
with the general mar¬
ket during the first quarter. Investors were

high levels during the

t

partners

business,

whose

the
STOCK

of

registered

public's

of members'

With few

High winds and dry weather during April in the northeastern
section of the country boosted fire losses to

year's

creased.

any

INSURANCE

heating plants, thereby increasing the
as making them more difficult to fight.

some

well

at
.

again during the year; the number

are

cold

number

employees
the

a

In line with this

large number of indus¬

a

total

stockholders in member organiza¬
as well as
the number of

■

conspicuously large fires this

1962, and reached

of the

tions,

by-line analysis, few if any fire and casualty
companies will be able to record underwriting profits for the first
quarter, while most will be substantially in the red.'/

increase in the number of

no

to

end.

three months of the

surance
use

29.1% higher than the losses estimated for

was

March of last year.

limited

profit margin in 1962, well below the 4.5% average of the
as rising losses have not been compensated
by rate
adjustments. The automobile industry's renewed
emphasis on
horsepower and speed in advertising is not likely to make in¬

the board in the 12 years it has been keeping

March's

be

past five years,

the highest monthly total

were

added

totals,

not

number of windstorms for

1.5%

11.6%

period

will

competition.

the first

during the first three months of the year, accord¬
estimate by the National Board of Fire Underwriters,

an

to

loss

losses

Continue Rise

three year term.

industry's major prob¬
lem. Recent bodily injury and
property damage rate increases
have helped results in those
lines, but the usually highly profit¬
able auto physical damage line is expected to be in
the red for

Fire losses

rose

Investors Holdings

de¬

are

period of several years

a

a

unusual

an

freezing has

coverage

Automobile

Results in the property insurance lines are

expected to be particularly

were

rates

as

Thursday, May 2; 1963

.

_

executives

concerning the excessively cold and drawn out weather conditions
experienced in virtually

over

line

multiple peril policies will certainly continue to be
unprofitable,
reflecting increasing losses, an inadequate rate structure and in¬

loss period in the history of

comments by

extended

fire

generally written for

fire line alone. There
First

.

Few and inadequate rate increases have not been able
with the increase in total fire losses. Rates respond

slowly to underwriting results in the

Insurance Stocks

—

.

pace

termined

STOCKS

Commercial and Financial Chronicle

dollars; before that, they had

been

as
percentages of par value.
Sixty-six listed companies

split

(50%)

or

better

during 1962; 16 offered their stock-

Number

197

Volume

6260

L The Commercial and Financial Chronicle

.

.

holders rights to subscribe to new

ries went to $6.16 from

MUTUAL

additional securities issues dur¬

or

ing the year; 15 listed companies
removed

were

the

from

connection

with

solidations

in

in

list

mergers

or

BY

(1811)

JOSEPH

Fund's

POTTER

against $10,507,090 at Dec. 31.

C.

March

The

National

v'V

■

yield

An Ear for Music

year

based

—

on

year

end

-

prices and cash dividends paid out
during

the

ferred

3.8%

year—was

and 4.6%

stocKS

common

median

on

commons

ferreds.

;

1961

on

companies

for

680

listed

century;

a

for'at

records

nearly 450 of them

have paid some cash dividend in
each

and

years or

quarter

every

for

20

more.

analysts,

brokers,

fundmen,

people

in

back offices and"— not least

customers.

It

was

time

a

—

community

their

diverse

what

were

doing

York La3
slate

Club

of

New

presented the following
tne

to

ficers

membership

the

for

for

of¬

Lloyd

buying

are
a

on

it

and

made

survey

members,
lost,

never

is

their

of

sense

be the top favorites of the

They

of

Chicago

Treasurer, and O. V. Cecil of

Smith

Lynch,

Pierce,

Inc.'for

be

held

at

The

at the

Club
2:39

Fenner

&

three-year term

a

Governor.

the

election

annual

will

meeting of

Friday, June 7, 1963

on

at

p.m.

the

Westchester

nominating

Kuhn,
Viale
and

of

committee

is

Miralia

of

David

Loeb
of

&

L.

F.

Alfred

14.9%

a

T.

Co.;

Chester

Rothschild

S.

Mante

&

of

W.

Co.;

Smith,

Barney & Co.

what's
ket

ahead

and

be

four

of

for

for

Co.

stock

mar¬

by

the

New

York

Exchange firm of Bache &

in

its

two

on

the

60

Broad

Street

successive

office

Tuesday

and

Designed to bring investors
the

on

market and
in

major

ute

on

for

up

the

developments

new

industries, the

seminars

with

outlook

will

be

90-min-

concluded

panel discussion by Bache

a

partners

other

and

key

execu¬

tives.

telephonic)

of

the

seminars

subjects to be covered

and

the

holdings

to

Fund

nance

trade
bile

companies;

industry;

May

May

9,

14,

retail

the

10.1%

market and individual stocks.

tendance

at the

At¬

meetings is sub¬

ject to advance registration: which
can

be made

Edwards
Street

at

through Miss Evelyn
the

firm's

office.




Broad

$11

share is being made by

per

&

Co.,

Cleveland.

oils

$2.15,

was

of

in

1960, ending
1959,

the

from

a

They

group
a

its

of

an

group

a

the

lead

third that

up

though by
15.4%

the

from

before. This'was

fallen

had

in

made

amazing turnaround for
that

the

standpoint.

year

in

year.

first,

was

In
al¬

slim margin. In 1958,
total

the

of

value

holdings left the contention

in the ruck.

The

1-2-3

of fund favor¬

ites, in good times

or

bad, should

occasion small surprise. After
the

selectors
the

Since

professionals.

are

term

call

the

fund

all,

often

is

used

commun¬

connois¬

managers

period

Corp.,

Our

the

Holdings

fines

dictionary

connoisseur

a

as

a

de¬

competent

critical

judge

music.

Our connoisseurs may

know
and

such

of

Debussy

left

be

things

Home

Products,

in

not

cold

by

sexy

Scheherazade, but they

are

swift

even

bad,

or

banks,

not

oils

and

close of

*

*

,■

Dominick Fund
March

31

net

$38,997,963,
share.

*

Dec.

share.

31,^ 1962,

the

During
acquired

pgr

per

'•:/':}a-Ch.v-v

holdings

fund"

the

quarter,

Burlington

in

Industries and Pan American Air¬

increased

and

ways

Aluminum Co. of

ler,

Franklin

America, Chrys¬

National

Bank,

Johns-Manville, Litton Industries,
Monsanto

Chemical,

of America

and

eliminated

Gas

American

Central

and

Corp.

Radio

Reynolds Metals.
Natural
West

South

&

mercial.

Indeed, it is not unusual

$1,266,406,564,
$1,221,902,700
Net

Florida Power & Light and Hud¬
son's

Bay Oil & Gas.
*

Eaton

sales

Fundmen

narrow.

livious

the

to

the

(fourth
before)

year

pers

exotic

are

qualities

last'

or

not ob¬

of

and

year

office equip-

that

amounted

NA-a' A."

Balanced

March

at
to

Fund

31

or

against $208,420,-

share,

a

705 and

$11.93

vision)

peal.
up

radio

•••'. r'

•;

$48,546,200 in the

also

They

; gaining

are

were

tele¬

' *

*

'•

/.

: .' *

•'-/

sixth last

year,

from eighth in-1960 and 1961,

tenth

cently

in
as

1959

1958.

and

No.

15

as

re¬

L

The I. C. I. survey came up

with

FUND, INC.
58th CONSECUTIVE DIVIDEND

•

Appointment of Dan A. Kimball,
former

Secretary

member

Inc.

of

the

investment

mittee

-has

of

Navy,

Waddell

as

&

consulting

been

The Directors of Television-

a

Reed,

announced

Whitehall

Fund

*

reports

March 31 net assets

at

that

or

$12.79

share from earned in¬

come,

payable

1963,

to

record

May 1, 1963. Div¬

idend

reinvestment

31,
of

date:

April 25, 1963

Chester D.

a-..

share, at the end

a

May

shareholders

May 1, 1963.

with assets of $13,248,-

compares

dividend of 3<t

a

$14,667,-

were

665, equal to $13.18 a share. This
868,

Fund, Inc. have

per

by

Dudley F. Cates, President.
sjs.

Electronics

declared
com¬

Tripp
President,

of. 1962.
120 S. La Salle Street,

New Data

Chicago 3, Illinois

Mutual
A

of

Stock

assets

net

$193,347,644,'
This

share.

assets

share at the

Fund

March

at

$13.43

or

and

$12.71

beginning of the
*.

a

with $184,-

compares

of

192,609

Combined
of

net

*

a

outlining

latest

the

of
de¬

velopments and growth of mutual
funds in the United States is

tained

in

Funds

—

new

a

just

1940-1962,
Investment

a

and

wholly-owned
to

share.

period

For

in

or

the

Covering
income

Services,

1962,

$3.24

a

subsidi¬

or

$3.03

corresponding
combined

income, totaled

operating

074,

$4,411,881,

net

$4,712,-

share.
$

B.

C.

Morton

Summary,

published by

the

Institute.

Company

the

a

period of 23

information

in

booklet reflects the steady
of the mutual fund

years,

23

the

page

growth

The

reports

in value per share of all

ter

ended

ries

rose

31,

1962,

vanced

to

end

the

of

March

to

gain

its three

31.- Income

prepared

by

the Institute's research

staff,

resents one of the most

important

of the

projects

rep¬

figures

collection

on

investment

funds
•

of

for

facts

use

by

apd

mutual

income

fund

investing for

growth possibili¬

and

ties

through

mon

stocks

seasoned

selected

Mr

com¬

their

quality.
Mail this advertisement.,
-C

*

^ria<:

n,J-

and Growth Se¬

Nam®.

the

industry,

company

Se-' educators and others:-

$8.25 from $7.83 at the
year

A

Insti¬

press,

Address.

Cafy

.Slate.

'-

$4 from $3.69 at Dec.*

Insurpn^e

Oj GROUP SECURITIES, INC.

concept of in¬

publication,

continuing

STOCK FUfjD

•

*:*

Fund

describes

con¬

booklet—Mutual

Statistical

A

booklet-

prospectus

year.

■

operating

Diversified

Investors

ree

compilation

comprehensive

year.

Howard

&

total

shows

Fund

Industry Issued
statistics

Eaton

the

on

ap~; series of shares -during .tbeaipff 'government' agencies,* +'the

in

ELECTRONICS

aaa*.

earlier.

year

a

i ■'

tute—the

and

TELEVISION-

share at the be¬

a

ginning of this

(fifth both years).
(excluding

devices

assets

$216,083,729,

❖

Electronics and electrical equippers

other

DISTRIBUTORS GROUP, INC.
The
trends

summary

in

total net

indicates

shareholder

the

accounts,

assets, sales and redemp-

It
for

the missile and aircraft industries.

a

sional management.

are

produces

the

of

vesting under continuous profes¬

dirge.

powdered metal products.

totaled

$5,603,184

in

miniature

the

at

amounted

a

rich, they

engaged

of

*

Howard

&

reports

»*

ac¬

of 1784 Stan¬
is

investment in¬

Total

were

Dayton,

in¬

aries for the first quarter of 1963

intoning
are

carry

and

com¬

when

are

and

regis¬

Inc.,

others

Dayton,

inventories,

quarter

for these groups to play fortissimo

If their tastes

company

Corp.," while reducing holdings in

a

com¬

j

dropped.' Assets

of

holdings

first

the

earlier.

704,500
,

assets

$20.23

or

;N-

■

$21.17

to

the

first quarter, compared with $63,-

that at

value- totaled

asset

equal

At

-

in

against

four funds

announces

$36,386,302,

were

'

*

>

at

manufacture

and
.yAA

*

for the first quarter

come

Farbenfabriken,

-

to

electric motors, motor accessories

share, at

a

Ave.,

also
*

1962.

year

Associates.

plant

the

with

compares

$8.97

or

with

pared

rian

com¬

play

unhappy tune, decidedly

This

to

$.7,443,648,

31

insurance

utilities

panies,

creased

Great Western Financial and Va-

-V

ley

Assets and net investment income

"substan¬

as

Mussorgsky

from

share.

American

were

proceeds

| Globe Industries,

$115,714,753, equal to $9.23

•A-V'*

from $2.04

were

increased"

$12.41

Britannica

A:

:

•

new

the end of last year.

Gillette and Pitney-

too

accurate to

more

the

to

tially

It

order

-

...

all

up

Net

77,500

additional

1962.

at $110,037,310,

that

reports

additions

Bowes.

to 13.4% of value from

up

New

FMC

n ue

14.1%

v

Of

being

of

sales

attained

of

gain

-

a

the

share,

a

while

retained

they

$14.42

or

Celanese,

a

% for

in 1961.

oils

showing

automo¬

industry; May 16, outlook for

at

McDonald

will be used to build and equip a

per

$24,157,880 and asset value,

share

per

insur¬

value

to

rose

13%

finish

chemicals

are:

May 7, Savings & Loan and Fi¬

share

"

gains

nti

c o

The

runners-up.

Indeed,

not

Date:

Public offering of 127,500 common
shares of Globe Industries,
Inc.,

compared with assets of $14,182,804, or $13.34 a share at the end

were

The Funds Report

*

date

to^ $21.84

rose

tered

Thursday evenings respectively in to recognize and warm to the lilt
May.
■
'
A.vv-.
Av of the cash register. In good times
to

per

during the period

of United Funds, Inc. group

(in¬

1961.

on

major industries will

conducted

Stock

seminars

Common Offered

date,

$50,267,841,

counts receivable.

seurs.

series

were

portfolio

did public utilities

ity, it might be

A

On that

year.

assets

year

first

loosely in the financial

Bache & Co. Seminars

fiscal

net

1962,; at the start of the quarter.
•

L

■

,

waxed

best

far

composed

in

fat in

from

fund

Country Club, Rye, New York.
The

funds

the banking and

so

spurted

of

Globe Industries

according to

Selected American Shares reports
that at March 31 total net assets

stock

common

with

category

First

Merrill

of

the

.

retary:. William M. Durkin of the

as

of

as

ground

for

value

total

"show"

Bank

of

unaware

important, they

more

ed

entries,

National

not

were

people, they accounted for 15.6%

To round out the in-the-money

Lloyd B. Hatcher

assets

net

lost their sense of values.

never

in the top slot

were

Insti¬

Broadway, New York 6,

the

Trouble,

Aberdeen

1962

Hogle

the

of

March 29 total net assets amount¬

Buyer"

A.

charge from

■

total

March 31,

$15,371,420,

Time

the defensive thinking of portfolio

cluding

& Co. for Sec¬

in

from $19.33.

can

in 1961 too, but due, no doubt, to

strong

Bianchetti

tute, 61

of

Company

N. Y.
#

*

30, 1962. Net asset value

(banks and in¬

year to

for Vice-Pres¬

of J.

the

fundmen

.

ident; Alfred

share

a

Investment

the

compared with $42,110,953 at Sept.

different

are

$

..

on

the

total

by

industry."

In

discloses that

companies) continued last

such

J.

there

of

Varying objectives

prices but,

place,

Daily

Bond

that

fact

share.

a

available free

are

mean

now

surance

for

Guastella of
"The

investment

an

its

of

ance

President;
R

dividend

Single copies of the Summary

totaled

the report for the first six months

\

caused

are

$14.62

or

reports

31

recorded by Nation-Wide Se¬

curities

owned

-

,

Corp.

March

at

high

new

was

types of mutual funds, with dif¬
fering long-term investment ob¬

clear that in the Bust of 1962 the

Just

Arthur

plans,

plans and sale of shares by states.

tute

selling. Based

earlier.

of

Co.

to

portfolio securities, accumula¬

by the Investment Company Insti¬

always

compared

White, Weld
&

distributions

total, 50,000 shares are
different valuations of par¬ ANf AyAX*A.A-*A • *
-./;.A Ay'iAA•'
sold for the
company and
ticular industries as
well as of Oppenheimer Fund
reports that at for certain
stockholders.
individual company stocks within March 31 total net assets were

fundmen

holdings

B.

Hatcher

,

"These variations

'.A.

A

stocks in all 27 industries. It con¬

they standing pat. But then jectives.

were

that

fund

no

„

1963-64:

year

shares,

re¬

objectives. Interestingly,

was

cluded:

the

ishly in liquidating stocks, neither

funds.

Bond

and

there

of

also

investments.

The I. C. I. study

mating committee of The

showed

holdings,

cies

If they weren't engaged fever¬

financial equities

Municipal

study
in

flecting varied management poli¬

about

portfolio people

about

N. Y. Mun. Bond

no.r

under

differences

the

wonderment within the fi¬

great

funds

Club Gets Slate

funds

the

values.

The

of

tion

-

at the end of 1962.
.

the

companies ha if*

dividend

annual

least 20 years;

$11,463,199,

This compares with $13.86

industry groups and noted that

the

dividends to

over

27

wide

sorrowful period for

a

A

stockholders in each and

since

by

gone

in

nancial

have

has

year

the Time of the Trouble, ushering

pru-

^

>

cash

year

almost

4.8%

'

,

some

common

every

and

listed

Seven

paid out

of

yields had been 3.3%
;

.

for

for pre¬

issues; at the end

the

of

shareholders, purchases and sales

*

Investors

assets

$322,736,484,

dividend-

on

paying listed stocks at the end of A whole
the

*

on

stockholders

which

median

assets

net

totaled

Hs

net

companies.

31

con-\

securities in other listed

received

combined

tion

The

$5.95.

FUNDS

19

80 Pine Street,

New York 5, N. Y.

Wi,iii»liiiT,)TTrTmrmrw*'l^ltt,^CT-'"'!^"^y^'^"'*,''''':-^1 *ir<&'

20

A

The Commercial and

PI

TX.

Continued from page 1

its relations with the-Chinese

progress

questions

gladly leave to

was

Qualified
qualified to

Cuban

better

di-

in

s

of

weapons

last

to

seems

be

to

us

Financial Chronicle

TDTTTDT
U JDXJXv^

.

Thursday,- May

....

TTHPTT

LJ

JL

2, 1963

THH^7

JL

X

X

j

war

badly discredited by its
fiasco

charmed

now appear

to be like the poet's "untravproclaimed
eU>d work, whose margin
•

f

,

f

d foreVer"

™ ™e and

rNn/NTT-rwrmx^/N

SEOTUTR
TTTFtS
±Vl
1 ±±JkJ

as

J

autumn

"

BY

OWEN ELY
OWEN
ELY

—
—

the situation. What which could hardly be inter-

agnose

the

circle, it must by
i

the Soviet

even

boss. These and other similar
we

outside

servers

6 U06 It

11

others

.

(1812)

TTT

xxS

1

•

beyond prefect

question is that the glowing

other than

as

As to China

confess-

a

Consumers Power

As to china it hag

just be-

that much of its boasted

Sion

Consumers Power, with revenues
of $331
million, ranks among the

Company

built

it

will

probably be several
gun
that
that
has
times
as
promises of Marx, Lenin and superiority in the long range
large
as
'Originally
pr0yed so hard and reWard- largest electric and gas utilities; planned.
all the others, particularly the missile field
simply had no less to the Russian
pe0ple. To together with Detroit Edison it
In the past deeade Consumers
grandiose forecasts of- Mr. basis in fact. This appears to
what
extent
they
have
has invested nearly $900
mflUon
Khrushchev, are proving and be a season of self-criticism
iearned from practical experigas (contributing about 60% and
indeed
have
proved to be in the Soviet Union. That fact

about the nature of the

ence

and

snares

not

delusions. We

can

that

may suggest

of the so_called
economic

some

imagine that all this has strictures which Khrushchev

escaped /the

leaders

of

the

has of late been making about

party in Russia and elsewhere
for

that

It

matter.

should

not

escape

observers

be

inefficiency and waste in
certainly Soviet industry must not be

permitted
in

taken

to

other

one

countries.

U

30

too

Khrushchev

still

catching

with the United

talks

all

to

but

no

surpose, or

that thin«s

us-

according

ffnnp

eaSy

of

to

widely

was

and ig

leap forWhat

about

plied

much

-xi

t

xi

of

the

where-

i\/r

x

n

States
stares

up

and
ana

taking
taxing

even

lead

m economic

but

the

y6ar °r tW°'

the
tne

Russia could have done what

Abroad,' the story is much the

,

there

are

a

farms

and

recreation

large

they could have accomplished area *n
by now had the Kremlin sup-

to

Chinese

this year's budget is onlv $71 milUo
so
that the interest credit

products

.

bas been at

Whife level ^ 19u9

number
areas,

until

1965
or
later, and senior
financing will probably be mod-

el'ate
ar0Und

furniture

There

aboutTndustrS

T

the

escape

the

as

are

,

.

show that

their

still

as

we

not

are

volumes of goods and

expect

Consumers'gas business

has

ex-

creasing from $37 million
to

$131

home

million

in

last year;

1952

for

gas

heating increased from $18

million

to

$75 million. In earlier

the

s

co

handi_

was

west, and from the southern

even

enigma
g
ci wrapped
wxdppeu in
in

a
d

of

•

strain, and it is beyond quesRank
tion that returns have not
been particularly great. The
]\fo-mp

an

middle

mvsterv
mybieiy,

but there is evidence

under
under

ponnomv
economy

KUSSian

see

coun-

more

e

in

services

and

day to day in this

try. China is

that

may

capped by insufficient gas supand to the Russian yoke, but Chinese have penetrated pro- border with Ohio
and
Indiana
plies, but in the past few years
hornbook when it there can be no doubt that vides little
encouragement for north to the Straits of Mackinac, supplies have been more
adequate
to tu
rni n
turning
out vast
gout
vast they
y were enough to put the "backward" peoples.
However, the electric and gas and the 1958 contract with Trunk-

comes

from

the

to con"

panded very rapidly? revenues in-.

of
oi

ning

increase jn

SQme

.

win- munist
munist experiment
experiment in
the Hope, doubtless,
win
China from Lake Erie and Lake Huron
m cnina.
on the east to Lake
Michigan on
them over to communism and in other countries where

permitted to

censors

Russians

such

doubtless

"EeqUUy
ra"0i
above
average.

is

been

miscellaversion of debentures, which
cominue-

i„ct

Mien i guxe

42%,
hag

the number o£ shares due

withnnt npdppbnuotltpr nmi
The comPanys service area is
performance, the same. No one knows just without neglecting
other pro]large> including about 70% of the
seems
to what
funds or goods have ects about the earth s surtace, Lower
Peninsular and
covering
have vanished from his utter- been sent to this, that, or the w^e, of
course, can
not say. about half the population of the
anppq
and pven <?nrh figures other
backward country
in What we do know is the com- entire state- The area extends

77

^

equify fTnancfng seSns unlike'ly

the

ebullience

and facts

high

m

chemipiuuuus, luinuuie, paper
pupex, uieuu
cats and foodstuffs. Revenues are

aJ5%

fairly

a

may decline

of

highly indus-

wanted

regime

are

over 4,-

ap*ds' Mufke^n

ran

recog.

fizzle

a

respectively)

c^es. ^nc^u^e Flint,

at this time.

say

course

nized that the
great
ward

revenues

,

£?**. 1withal that Mao now says was
^a" "T"
g
1
withdrawn, assuming that

great while Mr.

a

possibly

seems

h9VP

Once in

seriously,

could

nQj.

It is

40% of

it is served to a population of

man,

Africa

east,

from

.

N

Egypt downward has been

a

line Gas

The

^

Plllllicitv

arid

COmpany

^

vears

Chairmen

the

and

Purchased

its predeces-

sors have had a long record, the
gas business dating back over 100
electric

over

80

(subsidiary of Panhandle)

will

provide for further increases
in deliveries. Consumers has also

having both services.

0111611

#

enough

services are largely in separate
0„iy 0ne customer in five

areaSi

extensive

production

Properties from Panhandle
million which will add
reserves

well

as

as

for $18

substantial

new

storage

years. The present company was capacity.
y- '
yy.
losing, proposition tqr the
k
incorporated in 1910 and has paid
Sales of gas to commercial and
appeared in that land either. Kremlin. What is yet to hap- Appointment of 12 regional pubdividends since 1913. Sales to the industrial
customers have grown
Both countries are
approach- pen in Cuba no one, of course, hcky chairmen for the National automobile
industry are of course, at an even greater rate than the
f-nrt
knnw<? hut to Hate it k cliffi- ASS0ciatl0n of Bank Women has
substantial,

Marxian heaven has

no

-

J®

.

ade

major

' COOTr.
if onv not
t to seem much it
any ne

"

.

the

since

conclusion

u

of

i

keen announced by Mrs. Eleanor

p, Headlee of

Phoenix, Ariz.,

na-

war

activity. Agricul- profit in it for the KrOmlin— tional publicity chairman of the
ture in both countries is ob- and
apparently it is still cost- organization.
'
viously still a very serious ing a great deal. The effort to
The NABW has nearly 4,000
nroblem
and in neither
capture the world for Marx-" actlve members' a11 cf whom are
P
ii
anc* x.n hither even
P
,
woman
executives
in
national,
by their own admission is ylsm-Lemmsm-Khrushchevism
state
.

even

.

there

to

be

economic

and savings banks and trust

found

the

efficiency

pnnrco

and

of

cnomitv

course,

scarcity of

goods,

if

by

fond of

so

with

q

.

ooviet

definitely

when

Wp?tprn

Russia^

still

a

near

howpvpr

mneVi
however much

it
it

thorn in the iiesh

future—
a

be

a

oi the West-

And

interestingly

chev

Vice-President

who is
and

under

Mr.

Khrush-

be

moving

to

seems

Assistant

publicity

rector of the First National
Qf

Arizonaj

NABW

post

named

was

at

the

di-

Bank

to

her

organization's
in

St.

However, the company's

business is
a

decade ago, sales to other

of

industry

having

types

increased

somewhat faster than sales to auto
companies.
the

The company

plants

of

Chevrolet,

coin

for

gas
,

Buick,

from

usage

ing is
tax

is

apparently
good

only

electric

in

expanuse

of

processes,

year-end net

5.8%

1954.

down

Residential

below

are

and

average

the

na-,

residential

is above average. Accounton a

conservative basis with

savings

enjoying

two

celerated

for

vir-

investment

years

on

about

rates

tional

auto

try

is

6.5%

independent
Indus-

residential

regulatory position
favorable, although

its rate of return

supplier

The

to

heating

generally

as

plants.

new

Consumers'

is

plant

well

sales

reflecting the
sion of industry plus the

and Mercury,
Chrysler and many

as

in

consumers,

serves

Pontiac, Oldsmobile, GMC Truck
and Fisher Body; also Ford, Lin-

consecutive

Louis.

diversified than

more

increase

from

the

credit)

of

use

depreciation

(and

ac-

the

normalized.

The 12 regional publicity chair- tuaHy the first time in its history. Recently, the state commission
mm' men who wil1 make up her na"
The comFany's generating cacom- tl0nal committee for 1962-63, in pacity
kas+bee"u^cons+!derin®,,tbe possi"

S endeavor to build
in Russia, the

backward

Mrs. Headlee,

over

enough

in its endeavor to "build

Kremlin

companies.

annual convention

," ihunism

,

Bp

mav

may

ern world.

p„

itselt

is

for the

no more

doing, is

appalling. Even

comDarpd

our

Mr. Khrushchev

as

used to be
all but

consumer

measured

standards

rope,

tight certainly has not got very far
com- as yet> an(i seems to promise

so

in this country

mon

.

representing

one-quarter of electric industrial
revenues.

approximates

addition to handling publicity for
the

organization

at

the

regional

*evei are:

kw,

gain of 118%

a

10%

over

was

2.0 million

2.8

million

1952 and

over

1961; peak load in

1962

bility of

flow-through

Growth
was

in

rather

earnings

slow

in

the

however.
share

per

first

half

kw,

indicating a of the past decade, increasing
country in all things at least farther
and farther away
Mrs" Mar§aret DeLaet, Trenton substantial margin of capacity, from $1.33 to $1.67; in the second
except
instruments of war from rnmmnnkm
nrpnehpd
State Bank' Trenton' Mich- Mrs- The companv's plants are among 5-year period they increased to
and
fPW cno„to_.
i
communism as preached Ruth E Gilbert, First National the most efficient in
"
cular
the countrv
space by all its
$2.11, with a substantial gain in
leading exponents
a

achievements.
Lost
Inst
P

a

.

ftussia

through the
has made it

Prestige

stood

.i.

four

vpw

x

y ars ago it

*
on

a

mountain

p r e s t i g e
resulting
from its first
sputnik its evi-

rnnhJ+r.,/

in

simppsd

,

is, progress

society

wards

a

the

A.

.

nalure as

Hubner,

Savings

Vermont

National

&

Bank,

Brattleboro, Vt.;
toward an af- Lillian G.
Creamer, First Trust &
can be made Deposit Co., Syracuse; Eleanor R.
,

only in

j

o

•

•

fluent

peak of
dent

Bank, Lewistown, Pa.; Mary Jane

Experience Hoffman, State Bank & Trust Co.
plain as pikestaff of Welsion, St. Louis, Mo.; Jean

years.

system which
individual
•

U1

af

.

re-

l^act

.

,

.

Vanderbilt, Northwestern
ticnal Bank of Minneapolis;

NaMrs.

Kay MacEonald, Security Trust &

with

an

265,000

heat

average

9,631 Btu

per

kw

kwh.

rate

James

H.

Camobell

RJpnt, and the 50,000 kw Big Rock

Point Atomic Power Plant,
completed.
plant
on

will,

atomic

however,

experimental

an

time.

The

The

company

be

Ihnd

h

+'

J

f

operated

basis
and

r

.

For

..

ai

ures

time at Jeast

a

this fprrded
lif

tn

all
'

•+

-i

scure its real
many other direc-

tions.-Then the "missile
gap"

.

proved to be

political
political

a

figment hf

imagination,




fb»
a

and

rc.aJw

<

t.

Ia-

i

v

a

•+

'

a

m

.

•

+

society••

National

Bank,

Orlando,

'Fla.;f hebefit

Mrs. Margaret H, Colby, Memphis

for

a

Detroit

Edison have agreed to plan
jointly

-

'*

were
power

roughly in proportion to Lis savings Bank, Billings, Mont.; for construction of future
.boasting about its contribution to, that
progress.! J e a n
McDougall,- Continental ating plants as well as the
apihty. to destroy the world This
much the Kremlin
ap- Bank & Trust Co.,. Salt.Lake City, ing of extra-high-vohage
with its
intercontinental mis- hears'"to^^ have learned arid
is utatl; Mrs. Helen Ruehrdanz, First' .miss5 on
lines;
which 1
Siles.
its

of

Last year the

>

both'

companies.

tually ' the Two

eleetHd

1962., While

1963

operations

are

expected to be excellent,
earnings
per share, will be
handicapped bv

the decline in the

However,
mouths

$2.°1

encted

1962

in

March

compared

calendar

interest

earnings

and

with
it

credit.

the
31

$2.10

seems

12

were

for

likely

that calendar 1963 should at least

hold

around

the

$2.20

level.

gener-

the Michigan Commission

build-

decide'

to

If

should

order-flow-.through4

(whieh the company has-opoosedf
should' earnings could of. course show a
tran^r

;Even-.vsubstantial^ga|n;. ;L:

." At the recent pricpraEpund 44^2,!.
operated'ibhitly.-Con^dm-" CGhsumers - Power yields-;
3.4;%
* Mrs;. Bobbie S cog gin, ers Pcwer some time dgp acrtiured : based .cm dhe
increase', in the diyi-"
and-to-each-accordino'-to-his-i^. American■' State' Bank, -Lubbock."a site for a pumoed storage hudrn vdend rate tp- $L59
ouilded

each-

upon

some

"from-

Bank

&

Trust

Co.,

•

Memphis,

syatenk

be

may

-

according-to-his-ability- Tenn.|

noorfo"

crof™

;

-xx

jt

is admittedly

far in.the future.
To most ob-

Texas, and Mrs. Athene Hensley,'.-plant

effe'cthrehMay~

-near*

Lake- Michigan:,- t4ip.*20. This is-the.fifth
increase since-

U. S. National Bank of San Diego,

two comnanies

Calif,-:'.':,'

the

project;

are

and

if

now': sfudvin^ l«52i
the' plant

ir-

20.1.

The

t

,

price-earnings Fatio
-

'

•

v

is:
-

Volume

197

Number

6260

.

.

The Commercial

.

and Financial

Chronicle

(1813)

Legislative Proposals

urged
the

enactment

Baker

personal

in

field

the

of

taxes

and

labor;

investors and

disagrees

business-

defense

the

months

the New

record,

a

trouble

Price

progress -L

us

it

all

six

high

Index.

in

the

The

only

with

kind

that

in

Frontier has set

record

a

Consumer

this

time

second

as

spending

eight

ready

months

$10

passed

year's
a

ties.

to

the

next

New

fiscal

Labor

Clay

of

the

returned

ommends

in

February

to

foreign

William Jackman

its record high

tion

While

makes

votes

the

big

a

the

like,

gone

Administra-

play

the elderly,

of

and

ers

In fact, in the past

food prices alone have

1.8%.

up

for

the

the pensionthe

Kennedy

spending and deficit policies have
these

cost

people,

least

can

afford

purchasing

the

who

ones

This

of

more

is

kind

new

a

leave

doesn't
•

choice.

them

any

•

unless

1961,

prices
which

upon

for

since

durable

order to invest and expand,, have
been

subject

drops, and
I960

to

several

barely

are

level.

As

above

result,

a

severe

the

2%

over the last five
years.
Yet
the Kennedy tax program ignores

the need to invest, and

instead is

dedicated

consumer

increasing

spending, which has risen 17 % iri
period.

same

the

"reforms"

suggested
middle
find

if

The

Frontier

tax

the

of

man

is—the

only

most,

rec¬

into

law,

the

foreign

break

record
of

sure

promises

performance.

tax

or

the

For¬

July

year

1.

Conreduce

to

House

Foreign

aid

waste

and

hit in. with

Aid

The

previous

a

$5

some

legislative

Economic
Frontier

planners oi' the

blame

increased

vestors
lie

in

and

the

businessmen

general

tension

in

of

fields

needless

welfare

the

field

of

The

Investors

will

be

concentrated

in-

C11LJ1

not

true.

In

the

past

10

.total

of

26%

while; at

the

tax

that

should

re¬

ad¬

of

we

planned
state

their

socialism

concluded

objectives

the

investors
many

transit

.

East

newspaper

strikes

now

the

at

threat of

strike

over

So

far,

the

recipients of the
lords'

weeks

the

of

anti-trust

should

political

motely

House

a

same

time,

ron-defense .spending

104%

defense
hikes

.

Included in the

portion

have

of

our

has

spending

'a\ myriad

been

emerge from the

non-

League

this

legis-

national

a

extend

legislation

has

the

Judiciary

Senate

and

should

consideration

more

have

been

get

also

bills

Committee.
been

intro-

Congressmen Lennon of

will

not bear

national

a

work

the

and H. R.

(H. R. 2415

defense

of

sals

especially

manufacturing
these

will

legislative

-receive

propo-

vigorous attention.
P

New

Frontier is planning the squander-

ing of billions of
further

socialize

our

programs

energy

Our

tax dollars

your

needless

in-

resource

League

will

to

proposals.

proposals

Bvrd's

would

clear

never

r/—^irrance Qr™ — --1'1
I

—and

.

mands

somehow'
of the

use

one

other

New- Frontier—rthe

cit

With

such

word

-

it

de-

will

Senate

along the -and

we

"

the

TTri

except

to

will have

by

excise tax

stop

September
at

■

it

Treasury's of-

-

before the;-Senate Finance Com-

budget estimate of the: defi-

■

mittee

for

this
as

"

L

tax

also

billion.




$100

er

the

human

of the

gram

relations

National

conference

of christians and Jews,

Howard S. Bunn, Vice-Chairthe Board of Union Car-

™an

Corporation,
inner chairman,
Committee

is

serving

members'

community

from

are:

as

the

Henry

C. Alexander, Morgan Guaranty
Trust Co. of New York; Robert B.
Co.;

S.

M.

Clark

America,

N.T.

Champion,

Loeb, Rhoades

Beise,

&

Bankers

D.

S.

Trust

of

George

Man'hattan

Chase

Brothers;

Bank

S.A.;

Bank; Gen. Lucius
man

on

that

Clay

Sloan

Co.;

Leh-

'

Colt

Harold

H

the

corporate
the

oft

?a ured. ceremony> Mr.
w
receive the BrotherAward of the National
ei ence for distinguished

them

their gross equivto

a,

n

companies
upon

imposed

been

tax

kqod
o^f

sefv.1.ce V?

field

of human

able

outs"

We

revenue..

to

have

congress

m

"hand

REAs.r
we

The

in

the

in-

bill

to

form

of

a

following

received

Charles
is self

M.

from

Teague

the

tion

-pi

l

REA

-p*

Ty\ OnnPFI VlPl TTIPP
vypj^CIlllCllllC/l

\T

of

INIGWDOl^

California

government

could

;

•

William Friedman, member

American
May

1

of the
Exchange,
on

Stock

u

admitted

was

to

partner-

ln OpPenheimei'j Newborg &

N^u> 120 Broadway, New York
as fftembers of the New York

loan

cooperatives

?

_

.■"%;%' \\'.t

Federal

to local

l

Congressman

Administration

money

•

riGclman FartnGr

excerpt

explanatory:

"Once

j1 ®overnment

American Stock .Exchanges,

a

-

•

•

n-f --fVi,

'That .purpose

members'., right to human freedom,. who have introduced legislation in Congress to nullify the

/' power of
.organized labor to

con-

•

98% of,'all farms-are

terest

now

be

the

;'(if needed1

at the

same

as

electri-

Present-day loans, to

cooperatives
should

these

at,all)

rate of

in-

government itself must

'
In testimony-before-the, Wavs-duct* ;an^
all-powerful-;'invisible pay on -its own borrowings
Figuresand Means Committee, we specif--governmentin defiance
of the which, at the present time, is
•

,

.

.-

•

•

10
...

T
-.

•

...

01111

-

*

*

■

Corp.

/--

areas.

cially accomplished,, inasmuch
fied

.

Levin & Bishop, Incorporated, will
Mas been- substan-' be formed effective May 2, with

tricity'to farmers in remote

nrA.l pncrnwavit

.

•

,

fiscal-:year has -been

$8.8

of

Corpora-

Co.,
and
Sidney \J".
Weinberg,
Goldman, Sachs & Company,

com-

•

stated

Officer

Steel

art, Manufacturers Hanover Trust

"give away" interest rates to the

•

crack

M.

Board

of

rates

power

levying

amount

troduced

!

a

Roger
the

federally

electric

identical

owned

in

all

financed

the

taxed

have

appoint

is .passe

before

States

fight

enactment

tax

bears to their gross

re¬

probably
floor

of

on

the

paying, investor-owned companies

over¬

been

urged
to

or

at

income

Administration
have

have

legislation

alent

reme-

union labor

aid

mute,

^ress-.whn

4

planning

,

Ad-

opposition,

financial
named

Executive

United

Anderson, Carl
r—Our

o w e

100

honor

Chief

The

&

Socialized

of

the

been

Chairman* of

financial

League's

our

:

of

have

in

benefit

our

sites.

the

Orlando,

York.

2426) to prohibit strikes

facilities,

missile

in

oI

tion, to be held Tuesday,
May 14,
at
The
Americana
Hotel,
New

by employees in certain strategic

an

rules,
neces-

L_'

Speaking of budgets and deficits

dinner

-

"something: for^nbthing"

in

the

the

members

commitee

a

North Carolina and Scott of North

Carolina identical bills

before

Forum

j

•

community

be destroyed. The -Czarist throughout Jhe country at an in- ■
dictators l power over a free" peo- terest rate of
only 2%. The pur%
Rm should, be destroyed in' the pose was to make it easier
for. •
..human freedom.- There these cooperatives to
bring elec-.!
-.dedicated.-; statesmen in -Con

Senator

but

Ten

far

than

to the Labor

duced by

an

unions under anti-

O-i.

/-n

the

to

Jackman

OOlXLffirttGG

u" 0 J'

They a11 hold .out the promise-of"
_

/~\

ef-

to

of these proposals in

fort to put all

referred

Mr

Investors

W 3,11 btlGGteLS

and

Committee

e f^Pport that

by

annual

ajnd
under

Your

for

out

strive

This

taIk

.

5th

TT/^ll

at the earliest,

pump-priming, socialistic schemes.-, ministration's

nl

the

Committee, probably in late May
slightest resemblance-to

of

—m

the

are

recomjnendations.Labor's

Ways and Means

°f thiS sit~

Qffe/

has been

of

,

risen

.

should

trust.

cooperatives

Payers as a whole- Nonetheless,
am encouraSed by the public's

Blough,

scope

The RE A

be enacted

.

We

also

immediate

no

will

^ave developed a terrific pressure
orSanization directed by the REA
bureaucrats here in Washington,
anc* * am afraid it will be a long
R5OC,f5s
Persuade a majority of
Members of Congress that the
exlStmg subsidy is unfair to tax-

railroad strike is threatened.

investor

bases,

appointed as Chairman of these
boards such "impartial" chairmen
as Senator Wayne Morse and New

Also

unions

lation, especially when

panies

fact-finding boards to recommend
settlement by non-binding arbitration. The Administration has

the

Mississippi

laws.

all

go

owned

strikes, the

missile

bring into sharp focus

propo-

by

Coast

the Philadelphia
the New York and

strike,

railroad

-

*nto *aw-

Texas). This bill would

dustries.

Unions—The

various
and

likelihood that it

Carolina, Curtis of Nebrasof

intro-

attained by taxing
Helm, Chemical Bank New York
capital and incomes of every one of these welfare-state Trust Co>; Roscoe C.Hngalls, Inproposals.
galls & Snyder; Charles J. Stewprivate property,

Cleveland

these

everywhere.

members

most

can

>e

Labor

President's

blasted

and

frankly that there is

en-

Thurmond

transportation

the

have

(H.R.5065) to accomPhsh this. However, I must report

League's Florida Division
of Virginia, Gold- FIa»> ap™1 15, 1963.
•

Stennis

put

aware

maritime strike,

Fed-

in

two

ka,

on

well

are

dies.

thoroughly

should

proposals—but

continuously alert. The

welfare

Bill

Virginia,

Tower of

We

work

the Administration's tax

was

:i

we

I

bill

a

the

and Senate including Democratic Peal iudSe Sam Rosenman. This subsidizes
anything, it is difficult
Senator Harry F. Byrd, Chairman *s a.s near to compulsory ar.bi- to get it to abandon the
practice.
°f the Senate Finance Committee. J"a lon. as we can possibly get
Many years ago Congress proThe; final tax
bill
that
will
ere ls no hing impartial about vided that the Rural
Electrifica-

years,

spending for defense has risen

«hunting
as a pack,"
6
y
'
biggest crimp in the Ad-

sity of remedial legislative

by

^rol "up!' This *isPsimply'

w

away
owners

ex-

primarily the

before the Ways and Means Com-

This

In

complete support to

of

South

All

rea

to

.

were

the

especially

mittee

and

C.H..UC1

was

.

Federal Taxation—The
hearings

on

our

support.

Byrd

.

obvious

that

efforts

fields.

.

.

vocates

tax-

of

League's

is

the

nation's press and by businessmen

spending for the annual huge deficite' tlicy
1
o

.

ministration's

eral social electric power schemes.

were

New

Remember, it

it

especially

extension

of

so-called tax

enterprises,

spe¬

and

public

schemes,
of

and

Arizona, Bennett of Utah,
Eastland
of
Tennessee, Robert-

There

put the

seem

ation, labor union abuses
and

Labor

deserves

on

It

however,

287—A

completely rid of the double

of

pending

most

feature

the

electric projects and
co-ops, pay
their fair share of Federal taxes,

prime legislative objective for this

defense

dividend

gradually get rid,

progressive

nanced

session of Congress. The
proposals

Speakfng of Budgets and Deficits

to

are

S.

referred

main

cifically affect the interests of

ago.

v,

$50 and 4%

re-

billion

issues

this Congress which

with. the
'

opposed the proposal to

hasten this day we have
urged
that all government owned or fi-

League's Targets Ahead

sals

,

cost.

taxation of corporate
earnings. To

Southeast Asia in recent years.

in

our

can

acting State "right-to-work" laws.

long term capital gains and to

get

special committee head-

a

the

on

extrava-

'-reduction.and tax reform

New

bequeathed

so

above the original

repeal the

fe been wasted

in

breaking

.

and

ed by Democratic Senate Leader;
naUon

most
will

on

property

We also

in

cuts

the

over

The Clay Committee's findings of

once

consumers

any

seems

course,

put

are

income

relief.

least

Of

new

little

study. 0f

these appropriations to around
$3.4 billion, and Chairman Pass-

spending

plant and equipment is down

to

gifts and es¬
payable at the time a gift is
made, or upon death, on the value

requested

certain

seems

lend

State

any

been referred to the

wholehearted

meantime,

This

right-to-work law.

own

This bill has

son

tates

income tax and

goods,

rely for profits in

,

capital gains tax

to

sharp

would
Treas¬

League vigorously opposed
proposals to impose a new

the

^

great job-produc¬

our

ing industries

steadily

frpm

Our

of

Mansfield that

climbed

of

and advancing on a sliding
to 100% of par value at

ury's tax take.

some

President's

President

,

has

scale

value during the first

cal

gress

whereby

create its

it.

present proce-

water of

Spending

starting

our

It is the only proposal that
immediately increase the

look for

can

Committee

Suprisingly. enough, while the
index

par

$4.9 billion for foreign aid in fis-

gance

which

75% of

sliding

jectives

port of

controls—

on

budget

outs

government

holder

of the

of 1963 total $3.9 billion. In his

1S64,

dures

(for himself,

this

appropriations.

the

reverse

on

credit and recommended that such
credit be increased to
$100 and
10%. Your League's basic tax ob¬

people to accept government handand

would

can

Senator

we

the

of persuasion technique for getting

,

aid

where the sep-

deny

states

Committee

option

to

arate

Welfare.

the

laws

"right

work" law except

Senate

at

labor

our

national

a

Public

scale

Appropriations Subcommittee will
of their avail-- fight to cut them to $2.5 billion,

it,

power

able dollars.

The

amend

apart from the omnibus tax bill,

the

further

to

Bill

to

create

of

eign aid funds for this fiscal

September.

year,

nation.

and

to

Senators

essentially de-

Clellan of Arkansas

committee, named

tics, the Index

42%

Wilson

signed

redeemable

year

foreign aid spending, has startled

Statis¬

of

the

and

Curtis and Tower,

months to go.

halted.

of

report

rate
of

income

period to

year

by Senator Gold-

himself

Senator Mc-

year

Aid

Foreign
The

corporate

for

by

we

are

reduce

S. 87—A Bill
water

proximately 31/2%.
duced

Year 2% U. S. Government Bonds

wild-spending plans of the

Frontier

would

five

a

Herlong-

the pro-

are

bills:

death or maturity.
This
latter
proposal should
be
considered

accuracy

estimates,

of the

the

Bureau

the

fiscal

staggering $20 billion deficit in

Accord¬

ing

for

this

billion, and

more

the

on

of

necessi¬

our

of

the

the ACTUAL deficit has al-

is.

to buy

during

first

Based

con¬

that

year

of

more

money

however,

still have four

costs

sumers

show

the

public interest. Here
posed

con¬

long-term capital gains gradually
over a five
year period provided
such gains were invested in Five-

/%;:

should be made the scapegoat for our Federal deficits; and accuses
New Frontier of seeking to socialize our
energy resource industries.

For

to

pro¬

(H. R. 257) to reduce the tax

investors but also to the populace as a whole. Mr. Jackman reviews

interest of

and

over

enactment

League castigates the Kennedy Administration for
principles and practices said to be harmful not only to business

of

that

maximum

a

Head of Investors

men

Bill

taxes

York, N. Y.

sought affecting the

Committee

given

to

By William Jackman,* President, Investors League, Inc.

measures

the

Administration's

posals and recommended that
sideration should instead be

Inimical to Investors
New

ically
reject

21

ap-

offices at 5 Hanover Square, New
Tork City. Officers are I. Victor
Levin, member.of the New York

Stock. Exchange. President
Treasurer,

.,

and

Vice-President,

•

and

-Edward- Bishop,
and

Secretary,

Both were fromerly partners in
Levin & Bishop.
■

KXMiHMivmMmmmiimtmmvmMm&wmmmtz

22

The Commercial and Financial

(1814)

ernment

Restoratives to Cure Foreign
And Domestic Shortfalls
investments

Continued from page I

granted that few observes bothered
to

analyze
this

behind

'might

the

tions

Europe

that faced

dollar

all

those

na¬

elsewhere

and

so-called "permanent

a

gap."

lustre

within

Yet
is

and

no

few

a

longer

im¬

fears

and

occasional

from

mune

conclu¬

suspicions. At home, the
sion

at

w.

can

the dollar has lost some of

years

its

for

concern

in

We

it.

lay

and

strength

endanger

recall

what

carefully

is

inescapable

Chairman

Martin's

major shadow over

is,

words,

-

tend to find their way

central banks'
official

dollar

reach

holdings

in

reluctance
further

countries

some

enlarge

dollar

the

a

year

two ago these

or

increased dollar

gold outflows

or

holdings

were

the only means for

settling

our

deficits

with

for¬

tial

reciprocal

The

;

all. seek..

we

question

'

.

.

.£

arises

naturally

to

with

countries

the

of

arranged

drawing rights

currency

most

.

has

Reserve

of

major importance in international

rightly
the
the

currency

This

is

not

but I
intan¬

place for lengthy analysis,
believe

the

tangible

and

in

eliminating

/risks, have been

exchange

any

currencies.

foreign

arrangements,
in

useful

immediate

reducing

gible benefits from this role are

claims

on

great. Clearly, we must recognize

ing

moderating temporary im¬

the importance of a

balances such

if

full

weight in

and economic

nations. It is

dollar

a

of

ness

can

gold

the

world's

I

voice

national

our

strong dollar
is

to

carry

military

political,

dealings with other

clear, too, that only

unquestioned

continue

role

sound¬
with

share

to

the

providing

of

monetary base. Moreover,

cannot

conceive how

could

we

or

international

faith with

of

have

we

World

been

War

during
good

the

Reserve

and

new

the

more

path of

willing to,

isolating

ourselves

also

and

payments—obviously at enor¬

Even

if

ments

international

our

were

as

we

responsibility,

the world's leading banker, for

running

internal affairs

our

to maintain the

foreign

depositors

and

For those

people.

so as

confidence of

own

our

foreign

holdings, representing

our

dollar

an accumu¬

a

arrange¬

along

cooperation,

happy to

has not

say

the recent policy

differences among the major west¬

nations

ern

the

on

There

least

also

are

of

means

and

military

> VC'
other

financing

major

deficit,

a

temporarily, which

at

still

are

untapped and which constitute
most

important

I

reserve.

a

am

thinking specifically of the normal
resources

lending

well

as

national

the enlarged

as

facilities

of

Monetary

the

But

with

process

of correcting a long-con¬

tween

liquid

our

assets

and

tinued deficit the fund
best

dollar would be far

"lender

put

stronger if

we

stop to the deficits that have

a

reduced

gold

our

swelled

stock

and

short-term indebted¬

our

How We Met Balance-of-

Payments Outflow
Before

inate

considering

the

balance-of-payments

deficit, let's recall how it has been
financed

to

date.

Over

the

gated

about

through

$16

billion,

Of

was

paid

billion

$7

sales

of

this,
for

monetary

our

^old. Another $7 billion

was fi¬
through increases in dollar

nanced

holdmgs

official

of

international

foreign

monetary

and

authori¬

ties, while the private dollar hold¬

ings

of

foreign

banks,

tions

and

about

$2 billion. There

however,
either

to

the

official

or

increased

limits,

are

willingness
private

entities to add to their

dollars.

corpora¬

individuals

Relatively

of

foreign

holdings of

credit

easy

conditions in this country tend to

root

the

even

though

Reserve'System
hava
ctedit

the

a

resort;" it would

the

of

problem because

existence
And

of

these

besides,

special

it is

ob¬

vious that any

borrowing from the

IMF

a

is

only

ing

would

respite

that

and

require

merely

not

equilibrium in the balance of

pay¬

ments, but actual surpluses.
I

have, heard

our

">eed

for

but

I

can

+he

Treasurv

serve

the

of

payments
assure

and

cauoe us

underlying

equilibrium;
that

vou

neither

nor

the Federal Re¬

has had the

slightest illusion

that, thev
stitute

are

for

actions.

in

anv

the

Rather,

at present
while

we

as

basic

:

a

a

sub¬

by

more

to get our

deficit

under

sought to prevent' this

easy

from being translated

into

excessively low short-term

inter¬

est rates. To the extent that dollar




is

the
a

.

;Deficit

of

deficit itself.

this problem

follows:

can

commercial

or

I

sound

am

by

by moral sua¬

excluded

clearly
as

exchange

whether

sure

if

we

will, to

we

it

free flow of trade and payments.

Denies Interference With Private

Let

digress

me

have

moment. Many

a

told

indefinitely this involun¬

the

or

that

Federal

New York
ury

that

me

tary help. For

writers,

funds

Bank

bond

under¬

managers

not

to

extend

where large amounts

sure,

have always felt

we

discuss

to

borrowers.

with

those

con¬

such

pay¬

direction;

we

But

I

strongly

as

the

at

would

like

in

pear

with

private

lend abroad
to

as

nor

amounts.

can

inter¬

decisions

raised

These

to

Reserve

to

objections
private

are

business decisions and they
remain

Having

touched

not

do, let

possibilities
for

a

that

on

us

are

vigorous attack

ments

of

bare bones

be set out

(l)vwe have heavy

as

gov¬

run

costs

faster
a

the

on

beginning to

ap¬

growth,

should

active

automatically

don't think

the

to

our

and

could

reawaken

1950s.

our

Keeping

to "be "a

seem

this

a

ma>or

the

efforts

chological

gains

fears,

na¬

well

as

direction

Suggestions

commitments

I

initiated

plished in the last
deal

done.

aid

The

is

full

a

two,

or

a

drains,

since

through
rates

of

interest

policy.

of

gains

of

sharing

abroad,

culty

burden

our

friends

the

granting

even

reaching

of

aid

yardsticks for sharing. I

nect

that

real

savings.

long-run

I have,

as

President's

to

on

produce

to these

spending

will

pushed

be

several

we

having

now,

years

a

mone¬

international

short

tives

But I

so.

am

convinced that

to be

appear

conflict

term

-

these

could

be

of

surmount

but

we

domestic

still face the

may

question

whether

taken

them

on.

whether

or

tribute

can

we

do

not

economy

these

most

h°

not

as

direcUv

answer,

an

be

we

of.

dollar by
a

relieve

and

vital

We
ments.

a

I

come

of

our

political

—

-

now

Our

'

as

is

n^t^rmt
well

as

*

in

our

have

said

monetary
to

previous

on

policv

must

decisivelv

a"t

the

to

in

become
Tax

*

i

t,«t

me

sav

poliev-. Onne

sufficiently acute.
Policy
a.

we

controversial

doR«»r if the need,

word

ffef

about

away

details

of

tax

from.the

the

pro-

nosed program, I ami impressed

to capital move¬

efforts

of

st^vng

the entire f^ee
part.,

strength.

on,

balance

of

^reoa^ecl

should

cannot forget that, the widespread
use

con¬

.re¬

clofpndo

In seeking

duced.

would

international accounts. But in any

mditavv recurity
substantially

attracted',

importantly to

achievement

^cca-mns.
our

pay-!

vigorous!

a

that

shores

do

we

long-run

we

so^e

case,

which

our

run.

precarious,

a

ments problem—while

have

funds to
done,

stark

a

between

disappears in the long

There

y

all

it

domestic and international objec¬

of foreign

■"

.,

after

and

and

gain in domestic activity if

even

make

narrow

not

But

econ¬

to

in

exchange.

of

mone¬

maximum. This, too, should result

meaningful savings

dis¬

a

do not need

considerations,

what-might

the

to

been

undoubtedly have to continue

to do

the

foreign military purchases in this

country

two,

or

easier, in view of the

between

will

with

abroad

year

policy has walked

domestic

of matching United States

program

as

monetary

less than fully

has

about

worry

path

heart¬

also hope that

last

Fortunately,

For

proposals by the Govern¬

I would

country,

country's present ample liquidity.

sure

by the attention being given

ment.

the

resources

money any

Committee
am

In

this

deliberate

tendency for the supply

omy.

tary

Advisory

importantly

tary poliov on our domestic?

the report of the

Foreign Aid, and I

on

avail¬

mands. (2) We must not, of course,

sus-

I'm

the

lose sivht of the effects of

have read with keen inter¬

many

est,

would

aid

hasten

the level

savings to outrun investment de¬

on

emphasis

greater

multilateral

sense,,

a

(1)

depend

within

our

tinct

diffi¬

agreement

our

avail¬

would

and

employed,' there

Doubtless,

the

rates

on

as

with

in

be made in the

equitably with

more

fair

aid.

can

I

caveats:

credit,

vestment

a

goods that would have

absence

in

credit

the balance of savings and in¬

on

used to buy

even

changes

and

System,

add two

well

us

the

course,

territory" for the Federal

to

term

that

to

of

of curbing the capital

interest

part of the tied aid may well be

further

all
this

ability of credit, especially long-

be

to

economic

our

purchased from

and

■;

needs

relatively slow.

remains,

Reserve

accom¬

answer

dollar

of

source

year

tying of

not

be

outflow

"home

the

by

or

remains

more

psy¬

savings

of

ability. While this is, in

abroad,

encouraged

am

reductions

A

inflation

of

Monetary Disciplines
There

in pricing

as

With respect to our Government
financial

°Teat

will

possibility
Other

European

other cost

policies.

while

heritage

be

removal

restrictions.

scarcity

this

can

suggest that improvement in

in

target

that

heavy domestic capital

would

capital

However,

one

remaining

salary

elements, including executive

economic.

that

various

in¬

larger

a

overnight by the

and

tion is also essential in

compensation,

not

government

Corresponding modera¬

area.

country.
is

in the

minimal

can

hardly be achieved overnight. .We

solved
of

further

European

foreign long-term

us

increases within the limits of

the

of

capital markets and

this

continue

means

encourage

development

I

inflationary

wage

our pay¬

exnnrt volume

welcome

the

that plagued

pressures

to

against

capital flows.

over

bv all

efforts

our

activity

business

us

prices is. crimial-

We should

Government has

position

direct controls

this

higher

their

protect

already indicated, I
our

firm

a

problem

contribute to

our

have

into

should

exports and

I

glad that

con¬

trol,

see

price inflation.

con¬

we

to

problem. I

using restrictive

On

contrary, unless

enough

to

of

the

further

on

example, to believe

measures

flux

sciously aim at vigorous cost

this

past

doubtful

credit

taken

I would

on

the

will refrain from

am

would

count

can

we

in
am

foreign monetary authorities

As

productivity

rapid

more

declining

count

of

us

been

by

substantial

for "automatic" cost improvement.

we

to

open
on

boost

I

can

has

gap

Europe
so,

reason, for

or

push for

economy

long-term

currencies from the threat of cost

the theory that

on

market.

of

rate

in

we

that

governments and

rather

more

have

what

turn

that will count, since

change in
should

serious

afford all of the commitments

problem. First, with respect

increasing
our

besides,

no

number of countries.

a

but

been

Attacking the Problem

should

opposite

Euro-dollar

somewhat

or

that

needn't worry too much about

costs

should

so.

year

Some in this country argue that
we

ha^d
<

the

higher costs

central banks is

military

I

as

Federal

and the Treasury have not

fered

to

part of foreign

bility of avoiding undue market

that

in

and

resistance

ened

the ' timing of

cerned

rates

releive

hard

abroad,

also continuing. While

are

working

of

companies,
or

foreign

to

involved,

free

to

the

of

obtainable

interest

narrowed

thing, rapidly

one

the

sometimes

and

advantage

outflows

declines

credits, or arrange for such

be

are

Reserve

bankers,

extension,
To

Treasury—

insurance

pension

dollar

the

advised

commercial
of

Europe

on

in

rising productivity abroad is still

they

speaking for the Treas¬

has

—■

count

the

com¬

to

area

heard

have

foolishly

rates

capital

extent,

some

continue

been

Dollar Outflow

people

be

take

Sizable

price increases

to

us

would

principle of promoting

in. the. long run—and it is the long

The

helped

often

wage

placent

gov¬

largely out¬

Any form of

however,

legal restriction

adhere,

have

temporary

as a

favorable trade balance, the level

This brings us to the nature of

the

this count but

on

ordinary

channels.

sion,

some¬

facilitating special

the

side

the

course

ernment transactions

to

•

The Crux of the International

Federal

the Treasury

basic ob¬

our

Of

justified

measure,

serve

""

and

what vulnerable

their

holding operation

measures,

should not take steps

economic aid is

our

be

European

tional-productivity

flows.

contribu¬

liquidity, they

payments

control.

as

undertake,

fundamental

a

remedial

apart from

longer-term value
tion to world

sense

needed

:

ments, having in mind the desira¬

swaps

"cover ups" that

sight

the

of

case

.

tying of

emphasize

lose

the

in

investment

cized
to

adjust¬

rate

counter to

foreign currency borrowings criti¬
as

seeking

by

clearly such action is

we

pressures.

discourage private holders of dol¬
lars.

much

foolhardy to neglect going to

the
of

past

five years the deficits have aggre¬

about

last

isprobably

pretty

as

future repayment of such borrow¬

to elim¬

ways

of

resources.

to the rest of the world.

ness

be

regarded

major

world fi¬

jective of unrestricted trade and

so

the United States is in the

liabilities. But the position of the

our

-

can

in

rates and attendant

'he

Fund.

as

relationship be¬

of

upset

con¬

am

the

none

exchange

Inter¬

long

sobering

be. I

can

temporary competitive advantage

control,

lation of past deficits, confront us
a

tampering with fixed

structure

it

rises

to

higher

lost. In the past couple of years,

or

sharp

corporations,

baiiks,

won*

growth,

nancial

run

be

welcome

international

will

that

effective inter¬

financial
am

been affected by

pay¬

balance

in

now

would still have the

was

milestones

trade fronts.

real cost.

mous
-

partners in world trade

our

Treasury

ments mark

we were

crisis

Cuban

in point. These Federal

case

battle will

of

of

con¬

that

Second,

these

as

the field

on

as

nations

stability of the exchange markets

it is

and reduce costs. Much

exchange rates

through

capital remains too-large. Partly,

we

to

the

over

this outflow is due to the tendency

how

dollar.

the dollar. The

as

since

short-term interest rates

our

Incidentally,

fidence any

fident

the

structure

building

II.

ments—and

specula¬

or

citizens,

to "streamline

within recent years

unthinkable

well

as

which I

from

tensions

by

seen

a

Thursday, May 2, 1963

.

export financing and

that the

costs

friends

our

our own

financial

international

rencies

national

without

those caused

as

price of $35

that would undoubtedly wreck

tive pressures—against other cur¬

relinquish the key positoin of the
dollar, even if

gold, and in avoid¬

our

of

step would be

a

abroad, and with

These

key

a

has

States

impairment of

bfeach

nominated

of

bearing.

it is

devaluation

any

Such

are

worth

com¬

First,

United

or

deficits

the fight

per ounce.

the

burdens

de¬

bonds

the

interconvertibility of gold and

disturbing

States

is

excess

our

the dollar at the fixed

issuing

United

of

rejected

the

short whether

find

dollar

have

in

large

offset

to

remedies.
the

also acquired foreign exchange by

—

to

that

payments, while the Treasury has

dollar

a

recoup
our

prescribe what not

rid

of

or

welcome

should

we

we

and
of

aspects are,

but

get

it is

deplore the unique position of the

whether

sell more

and

from

enough

to

do

clear

Until

short-term
we

other factors.

tend to use
additional dollars to buy gold.
they

and

business confidence that is essen¬

growth

large

than

com¬

in

economic

not

bination

reserves,

abroad,

return

ponent of their growing monetary

Federal

vigorous

insurance; but important

volatile

It is easier to

to

eigners. But in recent months the

the

ment,

ample levels, there is naturally a

restraining that full flowering of
to

methods

and

.

America

get

markets,

foreign investments, the

Once these

to

including direct invest¬

growing

into foreign

reserves.

made

.

"export-minded," to provide past year or two have been helpgovernment assistance in finding fulj but the outflow of short-term

ment, long-term portfolio invest¬

buy from

investments in their
countries, the dollars

"a

economy,"

our

other

own or

being

are

flows—

goods and services abroad than

private holders as com¬

with

pared

concern

future

dollar's

the

over

that

these

to

abroad,

more

flows; and (3) while

unattractive

appear

commitments

military and economic; (2) we
have large
private capital out¬

Chronicle

sustain

the broad support for a
in both individual and

by

reduction
corporate

Volume

197

6260

Number

.

The Commercial and Financial Chronicle

.

.

(1815)
income

tax

removing

rates

as

and improving the

atmosphere for
investment.

private

productive

have been bothered

tax

reduction

since it

and

between

tax

clear to

seems

I

by the unduly

distinction drawn

sharp

of

means

a

drag on our economy

a

neither the Federal Reserve

tern

that the

Treasury

countenance

Sys-

believe

will

en-

hold

balance-of-payments problem

in
than

more

Our

the

management

Reporter

40

open

convention

officially ends

our

Wednesday, May 15. Many of the

can

analysts

will

immediately

BY

JOHN

T.

CHIPPENDALE,

leave

most needed reform is a reduction

be found in

in tax rates.

Apart from objections

actions along the lines that I have

specific measures presented
seems

sketched in this paper. A good
start, of course, has already been
made on most of these measures.

to

whether

The harder steps lie ahead of us,

enough

restraint

but they are not less urgent on
that account. We cannot have a

lyGUGniUlGS uOlU

vigorous and expanding

due, namely, the $1,183,000,000 of
4% notes, the $3,027,000,000 of the
31/4% notes and $5,284,000,000 of

Eastman Dillon, Union

314%

■to the

reforms, most of the dissatisfac-

as

tion with

the

reflect

to

there

been

recent statements

by

defense

and

should reach
year

as

spending side. I have been

encouraged
that

program

doubts

has

the

on

tax

outlays

space

affairs
States,

plateau in the next

a

two. However, I

or

nor can

not

am

two

further

paring

categories.

evident

that

programs
could

And

justified

sound

on

crfWiwo .limitation
effective limitation

eco-

„An

more

total
total

nf
of

LXUIIJ

economy,

&

wider
\

address

Economic

Club

acceptance of tax

by

Mr

of

New

•

1

Hopefully,

omy

would benefit

jble into
tures

tive

country

and by

somewhat

readily

ess

borrowers

became

Moreover,
free

to

domestic

(he
,

n>

dollar.

I

strains

r>11(?™n

gratified by

was

,

would

be

larged

objection that

the benefits to be

directions.
share.

by

c a n n o

t

they would

a

temporarily

held bv the
of

tared

the

societies.

Germany
oeiiiidny, •

expenditures

Japan

and

as

Canadian

\e 1 as American ana Canadian

control.

under

Under

these

ditions, they could expect

companying

economic

associated

and

ments

ance.

leading

to

develop-

better

a

ac-

pay-

'

-

An early highlight of the

William
of

the

C.

Norby

federation.

con-

inflation

of

tory

engendered

by

uncontrolled deficits to permit us
to

lose

ever-present"

sight of the

threat of abuse. Having in

mind

the usual gap between targets and
actual

performance,

ujiwise to
of

tended

•

the objective

The

over

an

ex--

period of time. But this is
from

deficit

Federal

saying

that

automatically

spells inflation, present

or

future,

As the experience of the last four
years seems

depends
or

on

to have shown, much '
the nature of demand

cost-push

economy

bination

of

both

public

over,

the

deficit

pressures

arising
all

be

private.

crucial.

and

the
com-

factors,
More-

The

experience in this regard

assuring,

in

the

of financing the

means

can

from

relevant

and

I

at

eration

will
of

improving

and

J_Q

ranSe

am




1962

was re-

sure

that

most

a

long-term

sizable

very

and

important force in
future

interest

of

course

rates,

it

does

not

appear as
though a modest
increase in capital market rates
should be unexpected with the

these

price

and

May

St.,

bonds

restric-

sold

down

area,

9

aiong

way

phillipp

Exchange,

appoint

£ar

as

conscious

in

of

.....

.

Thi<?

attitndp

make

on

mi^ht

bond

new

Governments
The yield

Expected

differentials between

t

tbe

vanous corporate bonds and.

Government
obligations
in

neeted

•

tnnp

ctu-tr

fered

down

offerings

are

ex-

ohmit

been

attractive

will

more

realistic

_

probably
level

to

of

-

_

investors.

result

in
■

.

of

the

absorbed.

In.

be

a

in favor;
provided

^ Government-does

not try to

*inance

the

too much

of

deficit

through long-term bonds at com-,
Pftitive bidding. The Treasury in-

a

prices for
•.

fully

widening of this spread
lonS Governments,

the market at yields that have '

This

issue

money

is

however, there should

pur-

flotations

new

new

Treasury

to

/Ninn+AM

_

4- U

V

4-

«..M *1

1-

1.

•

_

A

..

1

that it w hIn.i^n_ the

appears

_

Street Club Elects

sense

of the ultimate buyer and

PTpvify fn Aflmif

they

assuming

J-J-CifbA. wxiumil;

only

are

a

OfflRPrS for 1

as a re-

partially

original price.

.

•

•

disBy

David N. Daisley
Lynch, Pierce, Fenner &
Inc., 'has
been
elected

Merrill

waiting policy, inves-

Smith,

President of The Street Club for

of the bond^ which they want at

the 1963-64

the prices which they consider at-

organization

tractive

to

when

them.

This

the

original

is

usually

Chicago's

offering

other

on syndicate has been ■ dissolved and

May 3 will be admitted to partner- the bonds

a

clean

of the

up

year.

of

The club is the

younger

financial

ofllcers

new

in

men

community;
ar£.

Don w

Couch, A. C. Allyn & Co
VicePresident;
Herbert
E
Tucker

go down to levels which

ship in H Hentz & Co., 72 Wall will result in
St., New York City, members of unsold bonds.
the New York Stock Exchange

,

CHICAGO, 111.

tors have been abie to buy most

Roland B. Stearns, member of the done

New York Stock-Exchange,

the

various corporations in their quest
for ai
tor needed funds.
consiaeraoie period ot time,

L.

.

of

one

Better Yield Spread for
Long

by syndicates which have

tributed at the

.;

And

through the restrictof credit, along
" with higher

the bonds that will be sold by the

wide

.

the past.

in the past is

the
.,

.

^^"fthe fnLotnesf

effective

-p^Iov,rl T)
QiAnmc, '
i\,UiculU .D. Oiedi lib

some
action by the
monetary
authorities to curb it as there has

the

as

spite

e.

suit

TT

most likely

Pected to stay about where they
fixed income bearing obligations. *?ave keen until the recently of-

Casterline, Assistant Treasurer.

of

b

8 ^ J"

be

ing

have available for investment in

New

Emanuel

along into

b

his country there will

new bonds is con-

been putting these

the

money

because there have been instances
in the past when a reviving econ-

been in

to make very little
when new bond offerings
and David M. Pollock are brought out by syndicates at
Secretaries, and Paul B. yields which do not meet the ideas

win

Assistant

of

this

ways in which this has been done.

large amount of funds which they

Yl*

members

Stock

of

some

would be finding its way into the
equity market for hedge purposes*

cap;ltalma:rket C01"tjnues t° interest rates,

yield

£tH16 UlIlCGrS

teenth

that

mean

M

syndicate

i

(2)

A" 1Pt?"S1VSj°ur"da,y meetl"g
's scheduled. This year s program
has retained many popular featarea sucb as field trips and in^ustry forums. Breakfasts bob
sess'°ns a"d workshops have been
added
the convention agenda.

money

after the

_

and

.

the

offering will have to be

tions

.

broad-

a

bonds—is

determining the

cerned because the buyers of these
securities are still inclined to be

DENVER, Colo.-Bosworth, Sullivan & Company, Inc., 660 Seven-

will

and

new

f °
removed

not

(1) The fedways

recent

distribution of

rver?*

York

study

n'

r_1

m

con-

convention

looking for an outlet in bondsand this goes for Governments
as
well as
corporates and tax-ex-

rworted hefng 3 if°th'
h
ZTdi^S ^^ J
f IT d *?,

in

feel lts

located

BOSWOrtil, bullivan

committee.

Chicago

:

supply of funds

^ajnbRrogJess^s

^

ColoradoSoringCote" The

Ti

two purposes:

serve

con-

along

somewhat higher interest rates.
Even though the

digested before the capital market omy has been carried

chases

Vice-President, financial and economic research department, Har-

vention

under

$21,000,- More Realistic Bidding Required

Norby is

Viee-Chairman of this year's

Government

still

Hemphill, Noyes & Co., Treasurer;
John

w

Hillings, Jr., Billings &

Co., Secretary

and other leading exchanges. Mr
Investors Demand Adequate
Stearns js a Partner in Stearns &
Y,elds
Analysts also will take a first- Co., which will be.dissolved as of
;s quite evident that buyers of
hand look at many of Chicago's May 2.
fixed income bearing obligations
top firms. These field trips will
'
are
very much income conscious
include a management conference
and, with no shortage of new
as well as a tour of company plant With
bonds coming into the market for
oplame
and facilities.
Company
firsteither refunding or new money
echelon executives will particiraising purposes, they have been
FrcdGrick
P^te in conferences.
able to

Directors

for

the

com-

•

.

ing

;

budgets

different

quite
a

abandon

balanced

would be

we

a

President

presentations by leaders in

word is in order here

this

cause

The

as

business and industry
about Federal deficits in general. wiu Provide both the FAF memThat a long series of substantial bars a"d
tbe general public a
deficits should be avoided seems stimulating
look into projected
to be incontrovertible. There have trends in business, industry and
been too many examples in his- Public service;
.
'
a

investor.

is

raising issue of the Treasury be-

^s,-^

Mr.

;-;ifening financial analysis
Perhaps

institutional

long-term
market

shadow 0f the

into

in GalUornia, Colo.
rado, Montana and Wyoming.

•

,

means

Federal Deficits

entered

vention is the expected election of

expansion

credit

ments balance,

con-

an

has

an-

company's ten present plants

attend-

m

ris Trust and Savings Bank, Chicago.
He
is
currently
FAF
being brought Executive
Vice-President
and

were

bond

.

in

soundly financed, and that

was

o

!t
Colorado Springs, Colo.,
the c?mpany ^ engaged m ^the
manulact"re' and sa?e of ,bef
SU?r ^ SUg.3r b/v by;prod"cta
anCLtheaa?,e
bvestock beet
?! mid-west
a".
^ ,prl""pa>ly
,ln
th
and
the
Rnekv
!Je "^d-west and in the Rocky
J^°uritam and Pacific Coast states,
The

group

and

American

as

be

analyst

France
name,

Netherlands

well

this

straight

a

T""" B"ni"

enlarged budget deficit—provided
it

it

n

Holly Sugar

Net proceeds from the sale of in the 100%
the debentures and the notes will

con-

that

may

FAF members will be

resulting

gained in other

that

not be disturbed

en-

would lose

we

This view I

believe

I

by the

deficits

budget

from tax cuts that

an

are

shaken

so

The

confidence

ever

England
j^ii^idiiu,

iiuin

opjecuon max

friends'

foreign

that

tt

y.

<n

pre-regis-

indicate

j^bers
f

+

I have
have neara
heard tne
the
l

ous

time prior to May 1, 1965.

A„_

general

says

convention

iarBest

in Princeton last month.
,,

FAF

£.
,

the ABA Monetary Conference

our

u

Secre-

this point in his excellent address
n-;

and

vention chairman

tary Dillon's clear recognition of
to

i

ta

Mamcbe applied to the cost of

fhhJ

t

Chicag0j

the

on

The
,.

notes will be issued from time to

attend

rfthfpLw

1 fi

maturing

is

bring

Purities Js staying in

agreement, negotiated by East-

to

financial

Finandal

note

This

deben-

promissory notes due May 1,1982

1,300

Pfmwnnnn

1966.

wSStLHSL!gtt

promptly and flexibly

international

to

Annual

Fpdpvaffnn

3%%

a

15,

se-

from them

away

generally

empt

term

-

refunding operation with no new
money being involved. The Treas-

share, subject to adjustThey also will be entitled

nounced

^">8°. May 12"16 at the Palmel

some

carrying

-PSTtlSVtX
expansion
leaving it better able
to respond

16th

,

would

policy from

monetary

principal amount of

e.

to

ditions

will be

intermediate

an

curity,

at the rate

a

Jead

coming

they will get

and.

Feb.

stock

are

that

since betterment in economic

314% certificate due May 15, 1964,

due

per

Si

than

expected

pressing.

of the burden it has been

common

were

certificates, a package deal
consisting of a short-term issue of

rity.

l

m._More

^

&

Qf

foreign

reduction

tax

CHICAGO

and

demands

more

Securities

maturities

by offering the hold-

of the issues which

ers

1 J

debentures

v^vM.1 V vuilulx

funds

expensive

available
as

for credit

U. S.

making

more

x

(^nyiVPTlf 10T1

attrac-

more

A

xiLllctiybLb

an

payments, both by making investment in this

Q

15th
of

care

Providing for these mathe area economy moving ahead.
Also,
ment.
wllere the largest demand is for some of the funds which have
tQ
a* sinking fund commencing Government obligations, the near- been available for investment in
May 1, 1973, calculated to retire term and intermediate-term sec- bonds may be shifted into other
66%% of the issue prior to matu- tors of the market.
channels which would probably
0f $41

Hayes before the
York, New York

HiXPSCl rCGCOrd.

balance of

our

VyUlJJ.

The debentures wjn ^e convert-

do.

we

TY

j_

the resulting stimulus to the econ-

1

llldllLlctl

and

reduction

tax

kJUgai

subordinated

May

taken

public offering of $10,000,000
Holly Sugar Corp. 4%% convert-

City, April 22, 1963.

pvex

reduction.
;

The

'

^1]P*QT*

Co., New York, has announced

ible

JR.

trips,

the

penditures would, quite logically,
facilitate

field

0

through—and

I firmly believe that

than

Evidence of

FTrvllTT

worthy
of
the
United
if the dollar becomes a

courage to see them

civilian

larger

much

nomic grounds.

all too

is

of the

some

are

be

it

•

_

role in world

a

out-of-town

for the right measures to become May 1, 1983 at 100%.
fully effective if we have the

in these

even

play

we

for

weak currency. We still have time

at all sure that there could not be
some

combination of

some

on

houses for the analysts,
The

of

and

at

rooms

headquarters

Palmer House

may re-

solution

a

convention

inflationary

an

larged temporary deficits
suit from tax reduction.
I

Many'firms will retain

would

method of financing whatever

reform,

me

the

nor

23

-

year

Joseph

are

E.

BUteteto

Burton J. Vincent & Co.' William
g

Cutler

•

Co,

William

willi'am

FirSt

Boston

.

and

Donnell

B

Cutler

Ostrander,

Corp.;

The

Reighard,
Co

L.

Clyde

Northern

&

The

W.

Trust

Thomas M. Terrill, McCo.

&

get the issues which they

Management teams from leading

national

and

international

corporations will address the

vention forums.
companies
will

have

available

for

to

in

And
the

a

Chicago

management
convention

conferences

or

con-

number of
area

groups

members

interviews.

MILWAUKEE,
Schmidt
with
800

has

Splaine
North

Schmidt

Wis.—Donald
become

&

Frederick,

Marshall

was

F.

associated

Inc.,

Street.

Mr.

formerly local

rep-

need
at
prices which they are
willing to pay by having a little
patience. In addition, the improv-

ing

business

make the

conditions

do

buyers of capital

I-

not

ket obligations feel that they have

& Co. Incorporated.

which

to rush in and buy the new bonds

being offered for fear

.

•

:

Theodore

*

,

Leader

has

formed

Leader Securities Company, Inc.,

mar-

resentative for Blyth & Co., Inc.,
and prior thereto was with Loewi

are

Form Leader Sees.
*

-

with offices at 551 Fifth Avenue,
New York City, to engage in a
securities business.

and Financial Chronicle

The Commercial

Bank, Ft.

The Ft. Worth National

NEWS ABOUT

Consolidations

Branches

New

•

New Officers, etc.

•

J.

James

Schmidt

Eric

Bank

April 19 announced that he has given preliminary approval to organize a Na-

York.
Mr.
in charge of the Cor-

is

approval

National

other

Initial capitalization

of the new

"First National Bank of Leland."

pbe

bank's

partment, both part of the
Division.

National
•

dent and

*

Worth,

...

the

of

Division

International

elected

Texas,

Fort

Bank,

15

Bank,

State

Panhandle

*

New

Vice-President. >;,/
'

.*•

•

.

*

Si!.

^or y°ur client, then by all means and keeping — or you shouldn t

Gifford Hood as As¬

ident and J.

interest rate ceiling on U. S.

bonds

consequences

for

tributed

Chairman.
Si!

New

York,

Perkins
!

Director.

a

tion

Trust Company,
elected Roswell B.

Fiduciary

•'

for Free

*

!»!

The

'

the

promotion

Robertson

Reilly

of

Courtenay

W.

Josepn

Auditor,

as

Lr.

Everett

Plains,'
Plains,

White

Bank

his

began

Mieczkowski
career

as

of Port Chester, N. Y.

& Trust Co.

County Trust for

Dart of

many

In 1947
1947 he
he was
was elected
electedAsIn
as

sistant

advanced

also became Secretary.

1957

in

to

-L

■

.

18 the

land.

application to merge

.

i

^

ompany,
on

*

*

**•

,

long-term interest rate and control of capital movement abroad,
Hpinemann

economists

a

,

after AprU 15.

or

First

The

Merchants

National

National Bank, Asbury Park, N.

the election of

announced

Y.

James

Forsyth as Chairman of the Board
and John G. Hewitt as President.
H.

Kenneth

Board,

continue

will

tired,

McQueen,

of the

Chairman

as

formerly
now

'

,

"

-

_

„

m,

^

Comptroller of the Currency

James

proved
the
zens

J.

Saxon

April

18

application to

the

and

Farmers
National

yValkersville

ap-

the

Walkersville,.

effective

The

'

'

on

'

"

to

a

investor.

One

this

stocks to watch anyway.

investor

J! i

time I've been thinking

Eventually the client moved to

another city.

The salesman

who

used to know very told me this story calls to see him;
fact, the book-keeping several times a year. They con-*
I

must

on

to be retired and taking it easy." diversified but it is now manage-*

exports,

rates',

Without

hesitation,

any

this

a

There are no more hundred

able-

list, I'll admit. But may this

replied the investor, "What is it?"

,

.

can on y en(* m disaster for all.

Then the salesman suggested,

Mr' Heinemann's paper deals

salesman are working to-.

gether harmoniously and the re-

suits have been profitable for both
"If it of them.

was to your advantage to own

just

Sales Suggestion

^S° ™rate>

one more good security wotild you
You always compliment a man
p ®
J °™'
'
^rea'
,a lo°^ af,ll' Th? answer was when you imply that he is finan..
.
aL . e ,a ,ger ° lnf a" Yes and hey went over ?om® cially successful. You will also
^
°
• T V °"
llgTT petrtamlng .4° a lf°m>nent gain his good-will and his friend**» mmd ot the
j»n». bank located ma city not far from ship when y0u place him in the
.

,

a

munity, but also

the mind of

on

as

in the

passage

revealed

87th

Con-

where

this

figures

were

lived.

investor

impressive, it

growing bank in

The

was

a

city that had

a

gress

J

•

i*

_

11.

TT

_

n

scarcity

g,.,y.

,

of

in-

creasing number of semi-and

un-

expresses

the

m

Y»A o I ■*

prospects of the U. S.
greater

y'

,,

servants to the price index of the of the bank's directors.
T311
rv-f T
T
nrncco/1
V*
In
1
Impressed, he
turned
Bureau of Labor Statistics.

Washington, the favorable

-

ever

.

t

^

T.

P

_

hrnhpr hrarkpts

RpciHpc

curity js attractive, if
in

it,

stand
you

your

thiJ

if

a

you

believe

customer will

under-

much

more

readily^ if

suggest that he buy enough of

C/£LT*llH •ToiTI^

d Ulllb

±J' ^

also
the

S.

opinion

the

expresses

U.

Government

making

it

stitutlonal

that

means

looking,

nationalism

adopts

with

Sales.

t
.

ni
.

j

H

u

and

Co.,

.

.

to

do

likewise, the West-

the

I

like

"O.K.

not

only made "the sale" but he

acquired

a

client,

right,

seems

he

surprise.
He

man.

this

Here
,

recognized
lifetime

was

,

were

the

was

^

...

OGCUritlCS

habits
in

of

Fund On Coast

of

salesman

reflected

stocks

~

UOIIV.

wealthy

a

this

statement "I'll take
shares." Here was

that

quite

was

nnmhor

Then

that

fifty

it

retired, influential

was

investments.

shares."

hundred

one

heard

a

that

LOS

Calif.—The

ANGELES,

Convertible Securities Fund, Inc.,
a

Los Angeles based mutual

fund,

hundred has become the new name of the
man who Kerr Income Fund, Inc., 606 South

one

a
and

probably

the wa^ he bought them

Hill Street,

as

the result of

a

re-

cent vote of shareholders.

—one hundred shares at a time.

nf
i-

*

distribution

of

Douglas B. Fletcher, President,
He also realized that this man had stated that the new policy of the
been

to ideas such as Fund, under its new management,
diversification, spreading is to invest its assets in convert-

exposed

clients in their in- risk, and prudent investing during ible securities, both bonds and

needs.

the

*

years

when he was an insur- preferred stocks.

ance company

founded
vn.

in
,

1931,
„

.

are

,

Bert
A.

.

U. S. and other countries will be Friedman, Elliot Friedman, Alvin
forced

' *

to

executive. But what

..

This Fund is designed

to

pro-

Principals of J. B. Hanauer & he Was doing a§ a personal in- vide a diversification and super-

tariffs,
y

it.

new

'

quotas and trade restrictions, the
j

take

tax-free municipal bonds. He will broad

tt

o

„
-u

oriSmation

I'll

owned

.

economic

higher

Director of In-

Mr. Carlin's function in the

if

they become inward looking, the

inward

as

said,

stock, the price

a

'

Common

clear

May 1,

must

Market maintain outward looking
policies,

on

why the salesman in this instance

1

v»v^ n

this

When

HanaUer&CO.

St.,

and

.

be prepared to support a growing NEWARK, N. J.-Former Newark
^.P?r .10n °J.
Jlabor force Mayor Leo P. Carlin joined J. B.
whlch ls unable to fmd employ- Hanauer & Company., 9 Clinton
me

r\

salesman

op°pubUo'se"t0r'Yfn,ust
^elop lls P^llc sector or it must

He

some

about going over my list of securities. Why not take it with
you and see what you can sug^
gest." The salesman took the order
for the thousand shares and that
was the beginning of a long and
friendly business relationship,

invest-

the

of a relatively unknown a prosperous future. In addition,
Trends," Mr. Heine- piece of legislation H. R. 7927 the ex-insurance company presi-

skilled workers and the

that

by

me

for

many

In fact,

discusses the political cli- tying the pension of U. S, .civil. dent was acquainted with several it to fit his requirements-that is

mate in

,,

to

going to take your

am

advice. Possibly I've got too

day

him and after the

see

If this stock is attractive and

call.

I think so, I

astute

very

I ask you one question?" "Yes,"

study, "American Economic

mann
—

financial and busi_

replied, "O.K. make the telephone

ment department of the insurance

not

common policies
only end in disaster for all.

by the
a

or

Comptroller of the Currency




subsidies

as

vestment

and

policies

common

a

well. In
and the paper work keeps me stantly confer by mail and telesuch pretty busy, even if I am supposed phone.
The list today is well

it

purposes,

Mech^ics-Citiessential for its support to NATO, aid the firm's
of Frederick, jf tbe Common Market
becomes

Bank,

',

cross

the U. S. Government

m6y§e U. S. will lose the economic

April 25,
"

at

,

fronnoioi

In

must

become

ness

can

the

on

Bank

Maryland,

Frederick,

Maryland,

on

opportunity

East- The lack of

^

insist that the European

The

a

formalities

the developing countries and the is quite

ity.

,

World

your

and

capital movements and trade with salesman replied, "Fifty securities share lots. Both the investor and

significance to both Wash-

-

Western

matters

of the first

onp

comment

to

ing

*

*

Stockholder in this bank in keep-

fragmented,

only have outward looking poli- i company

est rates and its effect on the U. S.
balance of payments, a subject of

re¬

active

an

of the Bank

Director

is

skilled workers. He

^

of

successful

ommended
The

subsidy aspect of long-term inter-

immediate

mr
,

.

...

2

Community Trust

and

be_

choose

,

Port-

Bank of Portland,

Me.,

that

Congress has to choose be

^

C._,n
annroved
on Auril
Saxon approvea
baxon
approved on
April

National

and

he called to

be

the
the

take

thousand

who had retired and who

reputed to be

was

living escalator

will

available

shares

fine

a

city—if

growing

still

judgement

K"?W

large insurance

head

company

long and short term interest

in thn
tween the "hidden"
"hidden" cnhsidv
subsidy in
th„

Comptroller of the Currency

Ts>mp, j.
T
James
J.

of

firm

muintninc

and Political
The

is

a

your

firm this is

„

former

pension fund.

New develop

the

N

•

u

Treasurer of County
was

with

Exchange

.

Trust, in 1950
Treasurer, and

stock

?

Comm.tments. ing wlth

of the cies, but, in order to avoid work-

the position

Stock

Assistant

and

Secretary
-

payments and

messenger

a

old First National Bank

the

in

said, "I don't think you could offer
world trade will stagnate or con- me anything that would appeal to
tract, and governments will deal me.
I already own about fifty
with domestic stagnation through different securities. I have everyinflationary measures which can thing in my portfolio that I beonly end in controls and restric- lieve to represent sound value,
tions for everyone.
Some of the securities were rec-

gold, aggravates

consultant

mann,

Mr

banking

,,

„r„

fracnuW
0^D'
100 Share

jbank

In

our

reputation.
Doesn't
that
to talk with a very, successful se- sound like a sensible suggestion
curity salesman who built up his to you?"
business among wealthy and inThe salesman told me this man
fluential people. He told me about looked at him earnestly, then he
an
interview.'he had with the hesitated a moment, smiled and

needlessly

as

power.

an

of the causes

one

Markus & Stone.

N. Y. marks his 35th anniversary

tearo

to

dollar, according to Hans Heine-

*

Company,

years.

State and
well as

as

threatens

Mieczkowski, Secretary-Treasurer of The bounty■

the

buying

recon-

.

This subsidy,

York

*

of

cost

World

ern

economist said recently.

an

A.

Raymond

a

S. long-

U.

of

,

with

Service

R.

Lacey E. Mincey, As-

and

Mr.

Civil

S.

foreign borrow-

0f the outflow of

,

Savings Bank

*

with

U.

legislated

bonds provides

governments

all credit-worthy

sistant Secretaries.

Trust

recently

in

on

the U. S. balance of

elected

York,

Beach

ceiling

Government

jQcal

*

*

Greenwich

The
New

in

gubsidy for housing,

a

Bernard J. Ellis

Assistant Comptroller.
*

position that is

a

f Recently I had

payments

Assistant Vice-President

as

and Secretary and
as

of

balance

our

revealed

bias

4%%

term

Savings

York, has announced

Bank, New

harmful

such

suggesting that

by

,

usual
The

Emigrant Industrial

The

producing

clause

*

*

;J:

acquire

„

problem.
His recently
paper "American Economic and Political Trends,"
dis¬
by Marcus & Stone, analyzes the economic outlook; looks
World common policies; and warns of Government's infla¬

authored

Jr.,

Simmonds,

C.

Wall Street economic consultant flays

aggravating

today

announced

was

Albert

by

Bank of

Treasurer of The

York

New

and that of

About

4.257° Treasury Bond Limit

Wilbur G.
Vice-Pres¬

Thompson as Assistant
sistant

buy it at all.

ommendation

Cites Harm Caused by the

\

of

appointment

The

show your confidence in your reche

*

.

.

the

was

represents good value, is at- buy one hundred shares? Either
tractively priced, and is suitable this stock is worth buying, holding

Coeur

'

'■

another

you

ahead,"

"Go

Pe°ple stick to them regardless that they can offer to you now.
changes in their financial situ- May I call my office and see if it
with ation. If you believe that a secu- is still available? Why should you

cilable with his

E. Hines as

York, elected William

quetsion?"

offer him
investors

#

The Bankers Trust Company,

client and asked,

new

mind if I ask

you

the

the age of 64.

' ❖

"Do

April

of

d'Alene, Idaho, under the charter
and title of Bank of Idaho.

Vice-President

a

merger

April

York, died

30 in Lisbon at
;' V

elected

the

approved

Trust

Hanover

New

of

on

Bank of Idaho, Boise, Idaho,

R.

Joe

System

prospective

an-

always appreciate

—if you think he is a 1,000 share

'

~~

Company,

Governors

Reserve

Federal

a

,

0f

Board

will

10,000 shares, answer. "You certainly have every
underestimate right to buy one hundred shares
their own capacity to invest. This of this stock and we will be happy
is not unusual because investment to confirm it to you. But my firm
the babits can often be acquired and has one lot of a thousand shares

*

*

*

v

Vice-Presi
Martin, Jr., and Earl R. Waddell,
Senior Consultant of the jr., Directors. John D. Gibson was
Sherwell,

Manufacturers

a

*

*

National

City

The

*

*

«

G. Butler

*

compliment that

one

man

tional Bank in Leland, Mississippi, bank will amount to $510,000, and buyer
Initial capitalization of the new it will be
operated under the Some

^

1

Don't Underestimate Clients
There is

Electronics De+1—

,

~

orado.

title "Valley National Bank."

i--"

O

Littleton,

bank will amount to $300,000, and
it wm be operated under the title

,

BY JOB, BUTTON

an-

porate Financial Planning Department and Mr. Siff is assigned to
the Aerospace and

T^OIV /T A ~\T>0

OALitiOlVlAJN

I

pre¬

organize a
Col¬

to

in

22,

given

has

he

Thursday, May 2, 1963

Currency

April

Saxon,

liminary

James J. Saxon on

New

Bank,

Schmidt

Vice-

First National

the

of

Presidents

Robert D.

and

appointed

been

have

City

.

OAT

TT) JfTV^T

CORNER

the

of

that

nTTinT

bl^b U lul 1

R

Lee

,

•

••

Comptroller
nounced

Siff

.

and Trust

Spence Vice-President

Revised Capitalizations

•

elected

Texas,,

Worth,

BANKS AND BANKERS

H.

.

(1816)

24

Hern and Richard Tecott.

yestor™as loading up his bank vision of convertible securities
box with more items than any m- that would otherwise not be availdividual could properly supervise,

The- salesman

turned

,

to

his

able

to

-most

Fletcher stated.

investors,

Mr.

Number 6260

Volume 197

The Commercial and

.

.

.

N 1 A JCVl

lVl 1VL

Pi
XT-I. J-t-I. JJ1
l

corporations
have avoided their social
respon-

Few mourners attended the fu- to that April day in 1963 and real- sibilities, let him go out and see

LEFKOE

R

M

RY

.
•

25

writings dares to suggest that
these great mining

rights may not be submitted to able and every other individual
vote;
they depend on the outcome right
starts disappearing one by
of no elections." (Italics added.)
one—when people will look back

"D "V

nn A

TV yr IV yr T~T "XT

V /V
/
^

(1817)

Financial Chronicle

significance of the Court's their operations at first hand. Be-

neral, and no one even came for- ize the

V

to

ward

■

provide

a

judgment. By then, Americans will

tombstone for

fore he carries further this gra-v

.private prop- tuitous campaign of vituperations,
Very possibly a decision handed a contract,
express or implied, if the decision went virtually un- erty is the lifeblood of a free I ask him to do as I have just
down bv the U. S. Supreme Court with a particular debtor whereby -noticed last week, the day is not economy and a free society, and, done, and visit the mines 'of the
April 22, 1963 constituted the the debtor agrees to pay a certain 'too far hence —when economic without it, there can be no free- Copperbelt. There he will find
death blow to private property. " amount of money periodically to controls start becoming unbear- dom at all.
genuine collective bargaining beAlthough long the "victim" of in- the person engaged in-the debt
•
->rf
V;:-- ■:.- ;
'•
tween white management and Afnumerable assaults by government adjusting business-, who shall for
.
rican labor unions; schools built

—

the grave of private property. But,7 have realized that

;

on

officials, legislative bodies and the

consideration distribute the same

a

by the corporations and turned
over to the government for administration; welfare stations to
teach child care to mothers; sing-

w:.-,r.-

:
TTT*

property ;always among certain specified creditors
managed to survive. This was in accordance with a plan agreed;

courts,^'private

T

A

/»

j_

A

Y»

•

f\l\lITT(| QJ1/llf
<111U.U V li y vi Xxli IvCl
fore?)^'impregnable shield/, pro- V "The complaint; filed by appel- Continued from oaae 7 ^
comite ' from South Africa to ing classes for kindergarteners;
vided by the Fifth and Fourteenth lee Scrupa doing business as
- \
~
^
•»hV^inwai nrACnopt8
r„n n adult education, in the afternoons
Amendments to the Constitution'.; 'Credit; Advisors,''(■ alleged Vt h a t 'deposit, doing so in partnership
P
or Gem. for mjners- and their wives when
(The Fifth Amendment had pro- gcrupa was: engaged in the busi- 'With.,. French capital, both state «, ? 5s'^ .ega,rVneg0.ia lons .^Y1,
their day's work is finished; the
tected it "from Congress;' thd'Fbur^ ness of 'debt adjusting' as defined and Privote. -Is this evil? And an,ie
^ o1111111® r*g s. fostering of legislation to bar disteenth"; from;-State: Legislatures, by the statute, that his business other large American steel comis a e500^ e, ® glanf? an • e\ crimination on grounds of race;
The Fifth states: "No person shall
'useful and desirable' one. >P.any 1S going into Liberia to open
ween
an
ey sen stock-purchase plans under which
be deprived of life, liberty, or that his business activities were another large iron ore deposit in
lour expeditions into the area to hundreds of Africans have beproperty, without due process of not'inherently immoral or danger- partnership
with Swedish and make surveys, and 5eek treaties come part owners 0f the enterlaw." The Fourteenth states: "No 0us'
in any way contrary to the German capital. Of necessity that wi
e ri a au on les.
e prjses. and many other surprises.
State shall
deprive any person public welfare, and that, therefore, board of directors must represent *?ur modern hydro-electric staof life, liberty, or property, with- the business could not be 'abso- a11. of the interests. Is this ma- tions on the Lualaba River are
Suggests Visits by Critics
out due process of law.")
lutely prohibited' by Kansas.
hcious? Does the enterprise named for the leaders of these
And I would ask him to visit
' ' 1- ' ^
The [lower] court found that thereby cease to be subject to the four exploring parties.
the Kafue Flats south of the CopDea.h Sentence raised.

had

(hereto- upon.'

of; the

because

only

so

.

a

was

;•.

.

or

..

.

.

,

.

.

.

^

fall within

Scrupa's business did

con-

ciuded,

cne

judge dissenting, that

tbe Act

was

prohibitory, not regu-

emphatically

"we

that

declared

Su-

and

proscription

unanimously ]atory, but that

Court

preme

the

when

announced,

Act's

tbe

aside and the death sen-

knocked
tence

shield was

week,- the

last

But

in

part as

if construed

even

it

regulatory

was

an

the time when unreasonable regulation of 'lawful
courts used the Due Process Clause business,'
which the - court held
'to strike down state laws, regula- amounted to a violation of the Due
refuse to go back to

business

of

tory

industrial

and

pr0cess Clause

Toward the end of the 19th perbelt. Central Africa has never
been a wheat growing country,
but here in an artificial polder
built along the river by Dutch
experts, and utilizing the natural
periodic flooding, the Rhodesian
Selection Trust has at its own
expense carried on a large pilot
-.
operation to determine whether
1 es
iana
grain can be grown there as it is
And what about Ghana? The favorable terms because the Bel- in Holland. Dutch agronomists
construction of the Volta Dam is gians had met repeated failures were brought in for the experimade Possible solely because two in their efforts to discover good m.ent, and now the ..project is

law
the host country? Evidently the government of Liberia,
which is the second oldest independent nation of Africa, did not
agree with Messrs. Scott and
Wolfe, for they had complete controJ of the situation, and sought
the investment eagerly.

of the Fourteenth

r..

Century Sir Robert Williams organized Tanganyika Concessions
with British capital, and began
new explorations in Katanga under an agreement with King Leopold by which whatever mineral
might be discovered would be
owned 40% by his company, and
60% by the Belgians. He obtained

be Amendment. The court accordout Of jngly enjoined
enforcement
of
harmony with a particular school the statute."'^r
of thought'."- The school of thought
• ;
;v.C-competing - American aluminum ore. By 1906 the fractionalization
known
as
"economic" freedom," ; Due Process Clause No Longer... companies joined together to, pr*. 0f< prospecting rights, and owner-

conditions,

they may

because

improvident,

unwise,

or

according to the Court, is no more

■v

v /

than

standard

Constitutional

a'

h,Valld

^ fV V.;::
facts

the

reviewing

After

and

being turned over to the government of Northern Rhodesia for

ganize Valco, and through *' that t ship in pioneer deposits, among further development. Canlhis be
subsidiary corporation to enter,, the variousdnterests involved, be- distorted into the evil machina-

reasoning of the lower court, into a contract for power which came so complex that from an
Supreme Court drove the last in due course will pay off the operating point , of view they
"Nor are wg able, or willing to...'nail ;in+'0
the; coffin of private entire investment. No one can'"simply had to be put together,
draw lilies by, calling'a. law [pro-;; ProPeidy by. , concluding:"Under doubt but that President Nkrumah Union Miniere had to be organhibitory-or 'regulatory.' Whether; the system of government created had full control of that great nat- ized or there- would have been
the legislature takes for; its text- hy our Constitution,, it is up> toy ural resource within his area. Had no production at all. Each claimbook Adam Smith, Herbert Spen- legislatures,, not courts, to decide he felt that an evil
cartel was ant received an agreed share, and
cer, Lord Keynes, or some other on the wisdom and.,utility of leglooting his country, solely because so a board came into being that
is no concern of ours." And if the -islation.
There was a time when two private corporations had gave representation to each inlegislature takes -the writings of the Due Process-Clause was used . joined in the enterprise, all he terest involved, not for the purKarl Marx as its textbook—which- by this Court to strike down laws had-to do was to refuse to sign pose of monopoly, but solely that
calls for the .complete abolition of which were, thought unreasonable the contract.
Instead he led his copper might be mined at all.
private property—the Court.would with some particular economic or people in a great day of rejoicing. And let me add without rancor
show^"hio concern."-; '
social philosophy.
.... We have .
And what about the petroleum that men like Messrs. Scott and

tions of a monopolistic cartel? Is

Wolfe, who by hypothesis have
"^71,' / s
^
swered the blow of a whistle each
day tor years to go underground
mediately invites the great o.I-.n a deep: mine, or who never
companies to come in and develop have had to plan the development
it. Almost never does one corpo- of a mineral deposit, or to secure
ration go in alone. The almost the capital required to put a plan
universal practice is to form* a into operation, might in good faith

he tears a rapidly mounting pub-

economic,

v-vT'

slaveiy^

Moreover, the Court

~

.continued i^he

,

if

Thus,
it.

legislative body-bc

a

Federal

or..

State-decided-'to

declare the business of steel-mak-

Jing illegal, it could do so tomorrow
without
fear .of Supreme-Court
stating that selling any par-

law

ticular product was
do

without

so

if

And

to

wanted

it

'

1

individual

to

firm

business

or

worry

prohibit

any

from

selling property of any kind without

permission from

a

government

official, it could do so with absolute

impunity.

V

.

V

-

the

Court
*

The

'

erty

Court's Reasoning

execution

was

carried out in the

"William ,M.
General

et

.

dl.,

for

Ferguson,
the

Appellants

-Scrupa,

Advisors.'!: In

t

unanimous

.

v.

doing business

case

of

as

Frank
as

are

exceed

in

r}sk

Founding

bodies

do

Fathers

not

did

not

of ihe

vCourtr

.

,

,

asked to review the

Clause pf the Fourteenth Amende

ment;-n. Kansas statute makiiig it

a^mjsdemeanor Tox^ 'anyv;persprii to
..'in

spreading

the

give why large mines often have to
by joint ventures
with boards of directors that re-

be

developed

that the ownership of the land
which the deposit is located
United States Constitution— was is so often split into small fracexpressed Very clearly by the late tions. The pieces have to be put
Tbig

Justice

judgment, of ;^ -,.three-judge. Dik->very

enggge

to

C/ pleased—their actions were sub- fleet all of the various sources of
ject; toy c e rt a in limitations; as the; capital, and that is the fact

was

principle—the basis of the .upon

Robert

H.

Jackson:

business rrf ;debt

adjusting^ lexcgpL- Tis anvincident
5Ao;'the Jawfdk',practice?.of viaw in

...

this^.state,VTThe- statute--defines
^debt: adjusting'..as The making of
,




"The

Bill of Rights
to withdraw certain subjects
purpose

of

a

f viol a ti;On of the Duje ^Process from The vicissitudes;-of

•:

addition

there is one further reason

Credit

vtr;ct Cpurt enjoining, as being in

t

concerned..

d;elivexing the spelled out m the Constitution.

opiniori

follows:,. .-y

we

^

that

Congress or State Legislatures the
Kansas, authority
to do whatever they

;MiV: Justice rBlack ;described the
facts

insuring

Attorney

of

State

prop-

of

task

their authority to make laws. Our

legislative

of private

'

i

Mr. Justice Black and his colleagues deliberately chose to ig"ore the purpose of the Constitution and the function of the consortium in order to spread the
Supreme Court. The Constitution risk. If Scott and Wolfe are
(and particularly the Bill of right,
stagnation will descend
Rights) was designed to place a forthwith upon the underdevellimit on the whims of legislators oped areas of the world insofar
(and the majorities who elect as their hopes for earning foreign
them) by assigning the Supreme credits through oil exports are

'

sanctions,

Constitutional

about

eco-

lilegal, it could

having

: And if further proof were re- •
qUired of the value placed upon
^he contributions made by private
enterprise in the development of

emerging African economies,
recert;
statements of Kenneth Kaunda
the African leader in Northern
Rhodesia Instead of attacking the
mining industry, as Scott and
Wolfe have done' he has said that

do 'ndustry^everywhere inthe worid?
^Sr^soeial and
TtW 'T Y 'f 7
tor th^^Sentrf h?Mfd* »nd
Stam who^^re^Iected 0,1,w'tbln .'ts borders, and im-

If it wanted to pass a

opposition

it not rather industrial statesman-'
ship of the highest order?

not understand this.

owning a percentage and having
the reach of majorities and offi- ' a man on the board to watch over
cials and to establish them as legal their interest; is the only possible
principles, to > be applied by' the way by which actual production
courts. One's right-to life, liberty,;-can be undertaken..
V
and * property, to free speech, a
; Katanga itself is the best posfree press, freedom of worship and sible illustration of this problem,
assembly,: arid other fundamental As-early as 1890, Alfred Sharpe,

controversy, to place them beyond

.

iic debt' and hopes t0 persuade
capital and management
als0 to take over operation of
the railways, and of Kariba Dam,
both of which are now government owned.

«

where Would Africa Be?
_

And where would . Africa be
today if these great veiitures had
not been undertaken? The answer
is clear: Katanga^ Northern Rhodesia and the Transvaal would

fll\ be impenetrable bush, the
darkest spots on the dark continent\ l\ was the daring, the
imagination, the management
E^lUs °f these early mining men,
plus the confidence which mves-

ft is time to call a halt, to name
cam
character that it takes
a man a lifetime to build can be
destroyed overnight by an unfair
acCusation, and this is even more
^

oration because its

&

onymity makes it defense-

very anonymuy
•

,

beWs are falli-

'including

^

»

clergymen and an-

^

the help q£

world
voices
circuiate only those
which we can fully?

thoughtful people the
Let us ke
our

•.

^he oldfr co^nif}es critiJsms
Placed m their judgment that
t
hrought payrolls, and schools, a^d
: ;
b°sPlta^> a"d a ne^

one

^'

suspend criti-

q

.^^,1

tars

'°R
°no
th nks
together, and there has to be a trJ.•
? one Thinks
- whole pie, before anything can be :^.ncan®
J
done. The formation of a new things by themselves. It was

political corporation, with each company

wjp ke found in the

\

+An adAdre« by Mr

Ra"dXu jitca^New

^he
tne

fS

Mmrav

ttt

the vVOOQCOCK, JVLOyGr
outward thrust of private mitia^
tive from other countries, backed (jfxlCG
" *
sturdy traditions of thrift arid
savings from which the massive.
amounts of capital were drawn,
that . made it possible for these
areas to start Toward modern
statehood/ .
And if Professor Wolfe in his

-

.

' ~r-

-

v.

;"

HARRISBURG, Pa. — Woodcock,
Moyer, Fricke & French Inc. as
opened an office in Ah©- State •
Building . with Charles Dqran
Vance as registered repiesen a ive
in charge.

^

;

-

The

high-value

How Canada Can Increase

ing.

Manufacturing Exports
to

small

too

is

efficiencies of

*

In

-

n

\

,;

^

competitive growing econ¬

a

which is beyond a minimum

omy

size,

that

assumed

usually

is

it

the market, the greater

the larger

of efficient producers

the number

the

rather than the more efficient

exis.ing producers become. If this

the

true, the far larger size of

is

market

American

Canadian market is not

the

with

significant since

overwhelmingly
it

compared

as

indicate

only

might

competition,

greater

a

among

greater

a

Canadian

shall

this

explore

multiple
American

ment of

is

tremendous

it has followed the pattern

grown

for the

diversity

offered

south of the border may

Canadians

the

great

have led
just

demand

to

as

V;

variety.,: A.';-/.

a

A

Fortunately the Canadian econ¬

expected
has

blame here,

partly to

to the Canadian economy.

economy

Perhaps the

higher costs.

influence of American advertising

sideration, primarily as it applies

Canadian

produce.

greater the num¬

be, with the accompani¬

must

1970

the

typical

the

•,

offerings, the shorter each

ber of
run

manufac¬

would

plant

Obviously, the

omy

As

Again

different tires, a

what

of

con¬

now

out.

rubber-

makes 600

turer

number of competitive producers.
We

products

of

turns

firm

each

one

production.

mass

aspect of this problem

multiplicity

citing the 1957 Royal Commission,

market and

mass

a

that

the

permit

to

the

is

that the Canadian mar¬

argue

ket

Another

9

Continued from page

will

continue

to

by

grow;

manufacturing production is
to

be

greater than now.

If the number

not increase

of firms does

40%

least

at

appre¬

of many other, larger competitive

ciably, the size of the production

economies

runs

tant

by having

growth

in

producers. As
a

concomi¬

a

the

of

number

result there exists

a

greater number of producers rel¬

ative to market size rather than

concentration of
tire

existing

a

efficiency among

producers.

In

other

to

fit

to

will

of

Most

bene¬

the

output

Canadian

the

for

this

as

making

thereby

grows,

words, the American pattern has

possible decreased unit costs, can

been followed, despite the smaller

the

scale

of

the

Canadian

market.

competition of the American

producer

Although there may not be quite
the

petitiveness,

number of firms in both

same

countries, there
ative

the

to

market

of

too many rel¬

are

much

smaller

Canada.

For

total

example,

in the aforementioned 1957

Royal

Commission Report it was brought
cat

dian

tne

at

u

expansion

refrigerator

matched

by

number
served

total

producers;

the

market,

output

minimum

there

are

than

21

the

of

an

Incidentally,
In

be

the

part

feasible

^bjcji
in

market
tion

create

Many Canadian firms
of

American

companies,

this

item

American
costs

be

relatively
would

runs

status

American

with
be

the

unit!

smaller

served

the

production

plant.
and

in

having

But, of

course,

total

For

is

example,

smaller

Canadian

per

in the

industry

to

market

result

runs

steel

top

among

corporations

Canadian

a

be

Canadian

viously,

the

iron

average

Since

the

in

increase

a

glance at its

for

way

until

the

future.

increased

at

are

shorter

and

fre¬

costly; final

more

However it then lagged from 1946
to

1954,

again.

which

after

it

in

immediate

certainly

materials

servatism

increased.

In

rise

postwar

hectic.

tinuation of the

thus

sped

Apparently, Canadian

production costs of machines and
are

rate

a

comparable with that in the U. S.

to

runs

exceedingly
a

of

up

pro¬
more

the

and

years

Is

this

were
con¬

a

deep-rooted

con¬

Canadian?

Two

of the

size

the market

of

tion?

chemical

dian

be

this

to

boost

ber,

for

such

a

should aid

Canada's

better.

blast

furnace

and

open

the

hearth

ideas

sweeping

while

the

end

progressive

through
of

the

Revolution

brought

at the

the

conservative

rolling mill stage, probably

because of this market problem.

Similarly,
turers
est

are

Canadian

manufac¬

normally at their great¬

disadvantage when the prod¬

uct

is

altered
and

good

complex,

case

model

design

is

costs

are

large.

A

here wpuld be the auto¬

industry, with its frequent
changes and heavy fixed

investment.

Here the wiser

has been to concentrate

on

policy
assem¬

bly and parts manufacturing—and
even

into

servers

e

also

then final

ceed the U. S.

costs

tend

to

by about 15%.




ex¬

Canada.
feel

influx

an

of

Loyalist

Many

that

services

auxiliary

ob¬

Canada

the

ported

over

equipment

this

former

one—the

American

and

latter

only

disability,

Canadian

As the
grows, of

economy

infrastructure

basic

this

course,

larger and

will be able to serve a

concentrated

should
in

market,

expect

the

and

relative de¬

a

of

costs

and.

energy

^

The
relative

illustrated by
tations.

market

total

to

be

can

few favorable cir

a

electric light buib—

The

lending itself to

item

standard

■

size

firm

of

importance

1955 Canada

of machinery and $1.40 of

dollar of output.

capital

of

output

to

'

fore,

total

the

municates

the

results

then
to

com¬

the

op¬

This

4:1

population.
In

year.

productivity

data

be
somewhat
misleading;
however, it should be noted that

may

American

crues

performance

size

This is also true in

the manufacture of heavy custom-

equipment.
plant is

time period population growth was

2.5%

0.7%

or

Therefore,

year.

the

of

year

per

product

the

in

national

Canada.

can

a

electric

large-scale

the

significant item, and
equipment

produced

thus be manufactured at costs

for

output

period

the

that

$230 billion,

was

to

had

During this period Canadian net

of

capital

from

used to

ory,

for

customer

machinery, although
reflects

teristic

the
of

well

of this

some

high demand charac¬

postwar America.

undercapacity,

current
may

Canadian

lead

to

a

The

however,
in

decrease

supplies

marginal
when

ing

probably

are

nature,

drawn

on

capacity operations

approached
(Some

assured

is

outlet

in
of

a

of

a

skates.

major

foreign

sources

population growth.

commercial

in

second

occurred

significantly helped the

ports

In

Cost

this

needed

if

population growth rate had

its

been the

same

Some of this
ever,

to

would

take

as

foreign

that of the U. S.

foreign capital, how¬

have

been

advantage

of

T

-AV

large-scale

were

beyond

capability of smaller

has shown

though in terms of Canadian
rency

Al¬
cur¬

the prices of "end products,

inedible"

about 6% from 1960

rose

1962, the decline in the Cana¬
dollar

dian

during this same pe¬

riod offset this increase, thus low¬

ering export prices in terms of the
U. S. dollar.

also

As evidence, the vol¬

of these exports rose

ume

the period.

one-half

While there

was

decline in the wholesale

some

price of U. S. manufactures during
this time, there has probably been

continue

to

In

future.

Conclusion

\

view

structure,

in the

felt

be

Canada's

of

market

investment picture and

productivity, it

seems

logical that

Canada should concentrate on the
manufacture* of

products with
put

ratio

or

ratio, that is:

a

those

labor/output

higher
a

secondary

lower capital/out¬

capital/labor ratio

which is intermediate between the
States

and

Europe.

present

ratio

puts

Canada

competitive disadvantage to both

Canada's population furthered the

.'A.

exports

favorable trend.

a

United

American
of

to

A A".',;-•*.,'

v;;

addition, the price index for

Canadian, manufactured

to

ex¬

manufactured

portant, from the growth point of
the

expansion

greater

in

the

growth in market size, thus help¬

the

ing the Canadian
more

say

the

raise

capital costs, and thus fixed costs:
■A-

required

this

tend

of

be¬

Disadvantages

economy

capital

view,

inherent in

Canadian

of

goods.
■

not

have

firms to attain

efficient production runs and

lower cost output. In

factors

items

half

only

parent to its Canadian subsidiary.)
Canadian

the

1962, indicating that the deprecia¬

In the¬

therefore, Canada would

American

by

of these

selected

provide for the higher

the

provided

seven-eighths

Moreover,

Canadian entrepreneurs. More im¬

are

reflection

and

telephone

of the increase in twelve

,

foreign

in

agricul¬

some
shift towards greater price
primarily from
roughly the equiv¬ .competitiveness for the Canadian
alent
of the
$6.5 billion figure producer, - and the beneficial ef¬
cited. In effect, the entire inflow fects of the depreciation should

rate of

become the

now

like

items

the U. S., were

largest

the

consequence,

States.) .An

imports,

capital

United

a

United

equipment,,

invested

be

growth in excess of the U. S. rate.

was

Canadian

in

tural

over

comparable with those in the U. S.

froijn the greater degree of
production

.Since

just to provide for the population

electrical

as

not the dominant factor,

Certain

of

to

greater rate of popula¬

growth

gross

national

needed

was

.

per

2.8%

year

gross

(4x0.7%

offset the

tion

each

Canadian

more

requires

which

such
Here

but labor is

ac¬

concentration

per

same

low cost.

part of the over-all superiority of
the

the

over

the

lower than

to be

appear

in

(In general

producing aircraft in

radio apparatus and, of course, ice-

ratio1 tion

1.8%

grew at

Canada

of

manufactured

From 1955 to 1961 the

population

assem¬

additional part of the rise was

relation to

and

market also

Comparative

Canada

to -output

output

must be considered in

U. S.

aircraft

of the rise.

costs

those

?-.f;;■

capital

and engines,

and

amount

plant.

erating units in Canada.

goods

capital

ratio is about 4:1.

the financial

which

the

When addi¬

production

labor,

which

items

parts, radar equipment and mili¬

building

mit

apparatus

Five

1961.

probably noncommercial (air¬

than 45%

2.8% of this, or $6.5 billion, is the

much

in

in

$92 million higher

some

bly and parts, aircraft engines and

using $1.10

enough market in Canada to per¬

built

the United States

to

were

craft

an

1955-1961

optimum

prod¬

tary weapons) accounted for more

was

nal

plant

the

long production runs—has a large

at

had

time

some

(secondary manu¬

inedible"

than

cost ! of

supplies, is not such

nical

application, perhaps because

1962

Population Influences

sixth in the U. S.

a

more

with

compared

Canada,

until

factures)

im¬

problem to solve.

easy

per

investment goes to this sec¬

in

tor

1949 West Europe

Canadian exports of "end

ucts,

compared service^ is about 3.6:1. In addition,
with but 7% in the U. S.
Simi¬ inventories (working capital) are
larly, about a fifth of current about one-half of output. There¬
gross

the im¬
occurring.

cases

was -

higher

opportunities which

usually done in the American

nificantly

component

this

already

elapsed.)

the rather stiff Cana¬

remove

In

rent Canadian outbut is accounted

by

is

although

trade,

evidence; that

(Similarly the

runs.:*; Capital costs may also
been increased in those

in

up

is

devaluations did not aid trade sig¬

transportation'.— than its giant tional infrastructure items are also
neighbor.1 RougHly,v'll% of cur¬ considered, the ratio of all fixed
for

However, it will take

provement

buy from

increased further, thus reduc¬

imports from Canada since exter¬

it is

cases

many

are

-—

communication,

nerg y,

,

higher

production costs in man¬

show

there

parent firm regardless of price,

where

proportion of its resources to the

supporting

to

that Canadian production costs

greater

a

previously

the

dian tariff. While free trade would

Canadian

devotes

still

economy

In

tends to lag in research and tech¬

frequently, and the capital parent

overhead

mobile

its

more

element

France,

American

stages, but their efficiency is less

the

Actually

branches.

subsidiaries must

shift may be for the

this

power

offsetting

preciation of the Canadian dollar

American parents on their Ca¬

other

steam-generated

expensive

States has

in

energy

hand, where Canadians depend on
more

the U. S. by partly

ing sales and the size of produc¬

nuclear

the

on

Cana¬

stimulated

dian exports to

Canadian

are

world

equal;

more

The de¬

May 2, 1962.

on

ufacturing.

so

hydroelectric

make

will

costs

being

goods

competitor's profit spread.

nadian

and the

of

relation to the
effectively

>in

probably

margins, thus undermining the Ca¬

of

market

inexpensive

advent

The

now.

unsold

ex¬

were

<

years

nadian

tion

til

dollar

cline

dumped in Canada at much lower

however, may not continue
have
yield the advantage it has un¬

to

goods

these

of

55%

about

time for the full effects of the de¬

power.

cheap

r

all remember, the Cana¬
declined sharply in

we

stabilized

season

rub¬

production of fer¬

relatively

As

counterparts

remaining

of

S.

trades also results in the

some

the

of

'/ As
dian

greater capacity

shorter U.

The

mands.
for

ability of sulphuric acid
use

year

years

goods, and in

ported to the United States.' v

be wider than in
a

each

manufactured

"swings in Canadian

thus

manufactured

U. S. dollar until it was

these

hydroelectric

;

both

in

exports

were

put in order to meet the peak de¬

tilizer, helped by the ready avail¬

unresponsive

American

the

as

■

may

domestic

expanding

well

as

a

I should mention in passing an¬
well be
Similarly, the other possible adverse influence

example,

centuries ago French Canada was

the

Will

Synthetic

beneficiary.

industry Canadian producers

to

Cana¬

production

the

construction

Canadian

recent

in western Canada and the result¬

ing

costlier

fuel,outlays,

exports in 1961, 54% were

is needed relative to average out¬

by the greatly ex¬

petrochemicals?

climate

the U. S.;

production of petroleum

panding

colder

the

the $5,755 million

.Of

a

make, necessary

output tend to

result¬

and

producers?

offset

probably

of their

Goods

Manufactured

the

market, only

money

The seasonal

is

or *

there too many

Are

are

equal

dynamic,

reflection of the economies

thi3

the

added

in

borrowing

some

building

chemical

ing difference in scale of produc¬

1929

Canadian

times,

changes

the

From
II

War

boom

uent

try
this

a

World

productivity

pointing

in

Export Market for

Canadian

The

while

and,

States,

centers

may

compared

annum

in the U/S.

is

some

rising

was

Is the American indus-,

industry.

produce

past performance

helpful

be

may

per

3y2%

of

transport.

tivity is all-important to survival,

tends

er

2%

costs

Recently, how¬

productivity

ensue.

Productivity Trends

slowly

a

only
with

cline

ductivity

As

its

ever,

importance here

benefit could not

a

that

Canada.

sive and plentiful.

we

such

in the United States is

result,

Ob¬

tariff

S.

U.

Interest costs

Thursday, May 2, 1963

.

.

Canadian
shipped
to the U. S.; in 1962 total exports
production are as low as those few well-known companies have
rose
to $6,179 million, of which
of any country, primarily because this freedom to go abroad to seek
$3,608 million, or 58% went to the
the raw materials are inexpen¬ cheaper
funds.
In addition, in U. S. Approximately 10% of total
its

that

see

more

supplier.

favorable

a

2V2

in

smaller,

higher, and thus trade would

order size

times

less,

probably be diverted to the

that

so

Apparently there is

parents.

certain

a

costs.

Should the American demand for

offspring

tends to equal that of the Ameri¬
can

produc¬

lower

branches

are

the number of Canadian

;manu-

are- in very
the Canadian

thus

or

capital.

the

large-size

and

runs

this proliferation of firms reflects
American

if

high

the

of

market' could

sooner

demand

must

inroads

course,

factured goods

is of paramount

influx

in Canada

Of

the

United

the

.

usually higher than

are

there

com¬

in

growth

American

of' efficient

producers

Canada!

in

the

firms

size

plant.

now

19

less

efficient

ex'r gerators

was

in

although the

was

American

i

demand

increase

an

of

in Cana¬

the

checked.

into

its

increase

to

number of firms
be

successfully.

faced

be

Therefore,

in

ex¬

market

future; only

near

arket

in Canada

New York

we

power

the

over

m

costs.

be

examine, for

we

unit of output.

per

power,

with corresponding

States,

steel,
refin¬

dustry,

United

of the

those

Yet, if

like

petroleum

and

ample, the Canadian chemical in¬

firm could be increased

per

approach

industries

chemicals,

Commercial and Financial Chronicle

':<•

brief,

we can

that the pfice "of the greater

Canadian

growth

rate

was

a

the U.

dian

that in

high
it

at

wages

Europe since Cana¬

United

tal

is

lower

than

States, and its

relative to output put

;*

or

>V

r>

In/ addition, to

ada*

a

disadvantage in regard to

a

capital

/Jy'cA':

the

Europe.
•

and

productivity

greater dependence on U. S. capi¬

supplies.

S.

The
at

a

I-

•;

change :in • the

labor/output ratio, Gan- •A

would

A

i
Volume

creased

of

the

manufacturing
It

economy.

that there

.

.

A Favorable Outlook for

New Machinery

the

present time to serve the

productivity

and

market,

favorable

plants to grow and achieve: their

to in¬

size rather than

scale

plants.

new

up

-

would

cialization.

This

with

duplication

much

variety

merous

fact

In

do

of

a

Of

nu¬

course,

V

„

*

and

of

much smaller percentage

a

general indus^

of machinery than

trial

S.

fluence.

too high,

! To

extent extraneous irtv

some

.And

.

,

.

"

,

basic

old.

systems of water sup¬

our

80

Much

to

of

a

high.

In

is currently
It is also notable that the volthe pressing ume of appropriation cancellamodernization and for tions for all manufacturing indu^-

need

for

cost reduction, and the

s
neediish
<£uarter'
tis,\U
"
as
Predicts Overall 5 to 7% Gain

,o£ casb to

■

a p us tac,or-

of

-

Special Industrial Machinery
Tbe ou^ook for textile
ery

both the necessity to move forward in
It the purchase of machinery in one
It

in Canada to qualify for

to set up

As

ence.

plants

greater concentration.
likelihood
on

a more

the part

Now

branch

second key force in the

a

investment
improve profit margins. For the

to

But in all

positive program

that

of the Canadian Gov¬

like to point

should

I

record

out

in

growth

continuing

the

operations.
been

of

Some

closed

in

down

is just as

It

market.

of

performance

have

The

recent

itures

overall

an

probability is that expend¬
in this category including

basis of
of

prognostication

market

stock

the

com¬

one

any

pany's securities on the
General Industrial Machinery

marginal

these

statements

a

average.

fac¬

Adding together all of the

involves

marketplace

automatically ■;< mean

will

.

fewer

result,

a

overall

the

ridiculcui to
about

course,

general

hazardous as trying to forecast

Much of this

equipment.

equipment is located in

Investments to Improve Profits

tariff prefer¬

Commonwealth

the

better

of

is,

make

increasing costs.

pattern of expansion.

of the areas recited.

or more

may

incentive for American firms

the desire and

good year in 1962.

a

week from the

.

an

and ade_

j think this is a broad

quate indication of

machin-

and printing machinery:

enjoyed

fourth.

availabil-. try declined by 30% in the

ommendations.

be

million,

addition,

seems
to be the concensus that
further these, rec¬ ply, roads, schools and sanitation period 1941 through 1951. Much of 1963 will show some modest im¬
are
certainly
used
up.to
theirfull
For, exaijiple,- if.
it is susceptible to repair.
Other provement over 1962 because of
the United Kingdom, should fi¬ capacities in many parts of the equipment has become marginal
the continuing need to modernize,
Public Works projects because of obsolescence through
nally enter the, European Econom¬ country.
to change processes and to offset
continue
their
inexorable the
ic Community there will no longer, must
development
of
new
and

fluences

the in-

is possible that

quotation. activity

for

operated

has

it

optimistic.

to be reasonably

volume in this the durable goods sector,
section of the industry may in- crease amounted to $625
crease as much as 10
Customer or 68%.

It

War-time maat least 20 years

hours

100

tool industry has

machine

The
cause

equipment.

chinery is now

':

-

present

than maintain their

level.

the rate

budding
a basedemand is
of scrappage and replacement

,

j

in

major influence

.....

expenditures,
.

fourth

The

expected to do anything

not

are

and Replacement Rate

Scrappage

the fact that
supplies would
to accelerate im¬
act as a brake on monopoly prices, :, they continue
plies a continuing < favorable in¬
unless,'! the .Canadian tariff were
U.

since

factor

and

more

therefore that we should begm to
£eal .the bene£iclal e££ects rl2ht
0 now.. • r,, , ...j ,u ■ '

and ery\ purchases.,-u iY
;
.While space appropriations re¬
quire

1956 to

where new capaci.> *3
becoming necessary,
The National Industrial Conference Board Survey of new manufacturing appropriations for the
fourth quarter of 1962 showed an
increase of 13% over the appropriation rate in the third quarter,
It is particularly notable that in

are areas

show a slight upturn, but
metal mining activities

may

A

recognize

must

impact of" Space
Public Works on machin-

significant

serious *

plants is not a

their pre-

below

we

the

resulting lower competition among
Canadian

still

operating rates,

increase^oductivjrty.:;£he.

greatly

Non

facturing processes and products
will spring in 1963. Such research
and development programs were
jn the process of rapid accelera-

which

required if these indus-

were

ferred

away

products

of

tries

a

on

that

than

higher

would be

it
might be beneficial to consolidate
the existing, plants by allowing
more mergers and increasing spe¬

ting

place

take

must

spending

competition further by set¬

crease

no

year.

1959 are the base from which machinery purchases for new manu-

capital

where

point

*

pended in the period of

3 :v

Continued jrom page

benefit from allowing the existing

optimum

show

next

Orders

prob-

increase over the
- ferrous
mining

ably

coal

would

will

machinery

Mining

appears

other to alleviate the pressure on
margins does continue and there

•_<•.'

ably favorable.

sufficient plants in

are

cost reduction in one form or an-

the world also seem to be reason-

sec¬

27

(1819)

The Commercial and Financial Chronicle

.

existing industries in Canada

the

at

6260

Number

corporate concentration in

the secondary
tor

197

months and it appears that a re-

pumps and compressors, blowers, tors that I have recounted here,
shuttling m tne markets lor some fanSj power transmission equip- and relying rather heavily on that
Prodl^cts tak^nS Place- As Proflt ment, etc., will rise from 6% to instinctive itch that a good sales-

margins decline, some companies 8% in 1963. Since this category is man gets when he is in sight of
.
..
'
,
broadly involved in all the indus- an order, I will summarize this
'i
■; are choosing to drop certain prodwill
necessarily
continue.-Whether*
,
..
. ,
*
..
■«
.
a relaxation of the restrictions on
uct lines which may then place trial markets recited and in all discussion by predicting that newwe talk m terms of automation or
. ■Kllvl/ciQ„0
+V:Q
mergers, if the suggestions offered
• ■
new burdens
on the remaining phases of such markets, it should orders for all classes of machinery
in
terms
of new manufacturing
.
..
,
,
.
here are to be implemented.
move
with
the total industrial in 1963 should average from 5%
orocesses
investment because of PartlclPants ln that
to 7% better than the order level
In brief,, therefore, the possible
the high and continually climbing
1
that probably existed in 1962.
transition to a free-trade area be¬
r.

ernment will be necessary,

.

,

.

_

employee-

per

..

.,

.„

%

^

investment

fixed

such as

^

..

.

,

^

£

-

.

^

...

,

market. The

'

aTasoS «»*,.•:
stead-v
-8nd continuing one and.' While:
Engines
and Turbines
"not, therefore, represent an
thd Engine and Turbine

^

tween the United States and Can¬

ada

be

must

approached

slowly.

Thfs

Many of those factors which could

ofLrse

applies
PP
'

'

to o« c ev does
-

-

and

computers

to

machinery,

to

adverse factor. This

applies, again,

manufacturers anticipate a

American

If

products.

ment

the** tariff

more

slowly—such

imple¬

we

reduction

goal

Market

—we

allow these longer run tend¬
to

stage.

countries

protect

the

doing

are

transition

A ten-year period, for ex¬

ample,

would

give

scope

the additional

emanating from

market.:

This

expansion,

in turn,

could effect greater out¬

put,

plant

per.

would be

as

appraise, however, to what extent and how quickly they will

To

Cost-Price

Squeeze
It

is

a

thesis of mine that

pet

if increases in
it

is

productivity occur,

largely because of increased
investment.

Simultaneously

with the increase

of productivity,

fixed

and,

as

ical

plant

less

employment

a

little

phys¬

the capacities of our

crease

suggested,

significantly aided by

is

capacity

stimulated.

is

again, therefore, explore the out1°°^ J,or each of the separate componehts in the machinery market,
based on the best information I
could gain from people knowleach

about

edgeable

of

years

increase

and anticipates an

high

increasingly

the

of

red tape

concentration

in

market

on
■

,

.

not

or

such

_

,

demand

profitable investment

factors.

There

is

reason

to

believe that

Conference,

April

8,

Yakima,

tinue to decline

Washington,

1963.

the

hardly necessary to discuss

availability

Lag

of

Between

The

Balog

with

has

the

become

associ¬

Institutional

search

Department

Pollak

&

of

Re¬

Auerbach,

funds in

announced

by

Richard

purchases
of

new

is

the

processes

to

research.
Mr.

Balog

.

was

/

previously with

of

eral Cable Corporation, and is a
Trustee
of
the
Committee for

Economjc Development. He is
^

Director

of

or

other

also

Trustee of a num—

educational,

chari-

bu3ine3s institutions,

tafa]e and

any

Even before

flow, cash was

investment

de¬
and

Construction Equipment

already being gen-

possible

"

^

It

is

not by

development

accident

in

can

be

justified

improvement

in

,

.

u

i

AlTtHlldOIl tO 1163.(1
r\

(*

u.
v

Drive for Greater

by

Construction

may

prior

increase

machinery

states

Trust

profit York, will

margins. The already low level of
return on investment generally is
such that, in many cases, improvement of 40% or 50% would
still not provide an adequate return after considering the effectlve cost °f capital, the possible
obsolescence due to technological
change and the continuing deteThe' government's determination rioration in the market place.
to complete the Interstate HighDespite this problem, however,

products which require new

k

.

E.

Director

a.

..

some

stimulant

sales

product

was

Jennison, director of institutional

f

basic

velopment
machinery.

of the New York Stock Exchange,
it

;

and

Spending

his responsibilities included phar¬

Broad

is

Kircher

Bristol-Myers Company and Gen-

o

Electric Bond & Share Co.; where

30

Company,

high rate. If a
be
acreage planted this year profitable investment opportunity N, Y, Flllld
and the equipment on hand is a appears therefore, I am sure that
year older, it is likely that there industry will find a way to make
Hoyt Ammidon, Chairman of the
will be
improvement in this the investment.
^
Board and Chairman and Chief
market.
' "
The question really is whether Executive Officer of the United
^

much as 8% over
that we find many companies pre- last year. First, the sizable volume
dieting
large
expenditures this of equipment sold in the years
year.
You will generally find a 1655 and
1956 is beginning to
gocd correlation between high ap- wear out. Secondly, the total conpropriation rates for specific com- struction market, and particularly
panies and the amount of expend- those facets of it that use heavy
itu.res
that they«have made for
machinery, will probably increase,

Richardson,

Street, New York City, members
y

third

Research

machinery

new

was

Manufacturing

been elected a Director of
Tbe Lehman Corporation, it was
bas

more

Investment

Auerbach, Pollak

nevertheless

income

depth.

Officer

relatively good. Since there will erated at a very

squeeze.

James Balog Joins

ated

farm

paradox of the cost-price

the real

James

making additional

investment less attractive. This is

.

equipment sales may be 3%

Executive

Singer

ber

.

It is

Chief

Mr.

Adequacy of Return

.

Whether

President and
of The

Donald P. Kircher,

diffi- ann0Unced ' by Robert Lehman,
think president
of the Lehman Corpora tion.

opportunities depends
upon other
j

Machinery

Farm

farm

Associa¬

tion

Board, Cleveland, O.

cost of

the new de¬
fact, if we turn over the produc¬
preciation schedules, and before
structure.
to 5% higher than last year, be¬
tivity gains and then some to the
consideration of the effect of the
cause
the volume last year was
"An
address delivered by Dr. Marcus working force, the margins con¬
investment
tax credit
on
cash
to the Pacific Northwest Trade
somewhat less than normal while
greater

by Mr. Worthington be¬
Meeting cf the National

Elected Director

these days.

Pressure

these will create

segments of the market.

desired and
Despite this

is

continues the pattern of previous

create pressures to buy is the ob- of 10% or more. This is not
viously difficult task. Let me cult to understand when we

where

point

the

to

431st

.

increased. Strangely
enough, as we invest to offset the
growth of Canada's
costs of advancing wages, we in¬

to the influences

internal

greater

equipment,

Real Paradox of the

the Common

as

mon

encies

farm

the

Industrial Conference

well as to
pretty much across the board— 0f about 5% from 1962 levels, it
factory machinery. We should also from machine tools to farm ma- must be remembered that this
not yet present in a strong enough
note carefully, however, that as
fashion to insure him a fair chance
chinery.
market is affected by the Utility
we
invest to improve labor effi¬
in the
international
competitive
With these considerations of the Power buying cycle. In addition,
ciency,
and
as we add to our cap¬
race.
A tariff gives them time to
underlying factors that create a the decline will be from a fairly
ital plant, we are increasing ca¬
develop. It protects Canadian in¬
demand, it is clear that none of good level last year,
pacity.
'
them are obviously unfavorable.
dustry against less expensive
The outlook for growth in 1963
aid the Canadian industrialist are

address

♦An
fore

decline

as

Company

serve as

of

New

General Cam-

paign Chairman for the Greater
j\jew York Fund's 1S63 campaign,
it was announced April 16 by
Dale E. Sharp, President of the
Fund.
The 1983 campaign t o Jd e
Punched on May 1, will mark the
25th Anniversary of the Fund,
Mr. Ammidon will direct the
efforts of more than 140,000 vol-

unteers in the New York; cbnci^
munity, including business executives and employees, JJn^ori
&. Company, 'as an engineer in ;dollar has been expanding.•There nificant. J"Incidentally,
pharmaceutical research and pro¬ '.have been some studies made that construction is being accelerated look. The American businessman officials, civil service and edu^alag: of from in many foreign areas. Germany has consistently prided himself on tional personnel. This
duction, marketing manager of .the. will demonstrate
Electronic Chemicals Division and three to
years between such
has established a 10 year highway maintaining "his < plant
in good solicit contributions for the
'^expenditures and the capital ex--'^ program, Britain , is expected to physical .order. Byproducts of re- medical, health and welfare-agenvpenditures"mecesfea'ry^/Lb %bring>aCJ-inerea.s£ highWa^^expenditures by }.search and development are such cies which:, make the Fund > the
r.new^productn-jnto
production;V..one-rthirdCduring the next five vas to provide*opportunities that world's largest network ana loca
Hence, Athe research dollars, ex- years. Prospects in other parts of cannot be resisted. The need for non-profit community services.

maceuticals, electronics and elec- ..years. We all know how rapidly
and
development
trical equipment securities; Merck the \ research




a.

•

seven

way

,

sig- I do not think ti will have a-sighighway nificant bearing on the 1963 out-

Program on schedule is

?

i

23

The Commercial and Financial Chronicle

(1820)

.

* INDICATES

Now in

Securities

Registration

All-State

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

April 24,
•

NOTE

tures due 1977*

Registration statements filed with
of the "Chron¬

—

icle"

carried separately at

now

are

of this

section "Securities Now

tion." Dates shown in

the end

in Registra- **•;

parenthesis alongside sr

and in the index, re-;
fleet the expectations of the underwriter hut /
are not, in general, firm offering dates.
7 ;
Also shown under the ; caption "Effective •
the

*

company's

name,

,

those issues which became
effective this week and were offered pub-

Registrations"

are

7

Office

Meeting-

May

—

(5/9)

Office—600

18th

North

American

bentures

will

ties

an

& Co.

Oct.

in 600

offered

be

—

29/1962?

Inc7

"("Reg.

a.m.

EDST) in Room

7

•

derwriter—John

units each consisting of one

•

Associates

&

,

.

man

Associates

construction

York.

Atlas

Offering—Indefinite.

Salomon

Brothers

&

Hutzler.

7

Management Co.

28, 1963 filed $1,500,000 of 6% conv. subord. de¬
bentures due 1978. Price—At par. Business—A holding
company for two insurance subsidiaries. Proceeds—For
loan
repayment,
investment,
and advances
to
sub¬
sidiaries. Office—112 California Ave., Reno, Nev. Under,

writer-—None.
•

Bank

"Adanim" Mortgages
(5/6-10) 7777'

Proceeds —For debt

repayment, land development, and
working capital. Office — 3756 Lamar Ave., Memphis,

April 9,

Tenn. Underwriter—To be named.

dividend

&

Loans,

Ltd.

A

grant

to

mortgage loan

company. Proceeds — To
immigrants and other persons in need
of housing in Israel. Office—108 Achad Haam St., Tel
Aviv, Israel. Underwriter—Sakier & Co., Inc., N. -Y.
•

\VV

in
over-the-counter securities
...«specializing in

loans

Berns Air

King Corp. (5/13-17)
7
March 29, 1963 filed 100,000 class A common. Price—By
amendment (max. $7.50). Business—Manufacture of ven¬
tilating range hoods, kitchen fans, dehumidifiers, and
related

products. Proceeds—For debt repayment, and
working capital. Office—3050 North Rockwell St., Chi¬
cago. Underwriters—McCormick & Co., and H. M. Byllesby & Co., Chicago.
•

April 17, 1963
debentures

ISSUES
BOUGHT

for

-

SOLD

-

offered

QUOTED

Banks, Brokers, Institutions

ESTABLISHED

Jh

'na

1942

Dlgby 4-2370

Broadway, New York 6, H. Y.
/

*

;

/

TWX: 212-571-0320

Direct Wires

to

7

.7

R. J. HENDERSON & CO., INC., Us Angeles
~ U
WOODCOCK, MOVERT FRICKE O FRENCH\ INO, EhZadclphi*
-




one

—For

insurance- company. Proceeds

Office. — 411
Ave., Phoenix. Underwriter—None.

investment, and expansion.

Central

North
77-*

(5/13-17)
!
r
Dec. 28, 1962 filed $150,000 of 6% subordinated income
debentures due 1973 and 30,000'CommonM6hares7to beoffered in units consisting of one $10 debenture and two
common.
Price—$12 per unit. Business—Production and
•

Chemair Corp.

chemicals

of

growth
tion

and

of

sale

and

designed

control odors, bacterial
and development, produc¬
electronic vaporizing unit for dis¬
to

pollutants;

air

an

pensing such chemicals.

Proceeds—For debt repayment,
equipment, sales promotion and working capital. Office
N. La'Salle St., Chicago.
Underwriter—Price In¬
vesting Co., New York. Note—This company formerly
was named Chemair Electronics Corp.
:
" ;

—221

Chesapeake Fund, Inc.
5, 1963 filed 100,000
Business

value.

A

—

common.

Price

Net asset

—-

investment

closed-end

Proceeds—-For investment.

Office

—

156

company.

South

St., An¬

napolis, Md. Underwriter—None.
Chestnut Hill

Industries, Inc.
filed 300,000 class A common, of which
225,000 are to be offered by the company and 75,000 by
stockholders.
Price—$5.
Business—Design and manu¬
Nov.

1961

29,

of women's, misses' and junior sportswear, co¬
ordinates, and dresses. Proceeds—For debt repayment,

equipment and working capital.

St., Hollywood, Fla.
Corp.; Boston, Mass.
Citadel

March
for

25,000 common shares to be
$100 debenture and 25 shares.

Life

Offering—Indefinite.

Insurance Co.

Securities

7

of New York

26, 1963 filed 40,000 capital shares to be offered

subscription

by

shares for

each

new

Office—2025 McKinley

Underwriter—Clayton

stockholders
three

held.

on the
basis of two
Price—By amendment

$26). Business—Writing of life, accident, health
disability insurance, and annuities. Proceeds—For

(max.
and

expansion. Office—444 Madison Ave., N. Y. Underwriter
—Alex. Brown Si Sons, Baltimore.
/7 /--f-2""
Colorado Imperial Mining Co.

20,

1962 filed 200,000 common. Price—$1. Busi¬
mining. Proceeds—For exploration and

ness—General

operating expenses.
—None.
:
7." * /
.

Commercial

Life

Office—Creede, Colo.
•'''••:: .'■• 7"
Insurance Co.

Underwriter
7-' v//; 777"

of Missouri

Proceeds—For

for each 3.36 common shares held. Price—At-the-market.

inventory, expansion and debt repayment.

550 5th

Ave., New York. Underwriter — A. J.
Davis Co., Pittsburgh.
-,
7
—

.

•

Bonanza

Gold,

Inc.

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

\ placer claims in Alaska. Proceeds—For general corporate
purposes. Office—E. 15 Walton Ave.7 Spokane. Underwriter—Duval

?

$100,000 of 7V2% convertible

1968, and
of

Corp.;

for subscription by

March

39

due

units

Securities

Equitable

Price—$287.50 per unit. Business—Operation of licensed'
departments in department stores, selling clothing/rec¬
ords, pocketbooks, sporting goods, greeting cards, etc.
Office

^Sidney S$. SIEGE!, V

in

("Reg. A")

Business—A legal reserve

Sept.

(5/13-17)

Big G Corp.

-

facture

1963 filed 84,303 of 8% cumulative preference
participating shares. Price — $3.33 per share.

Business

& rCo.

Securities

March

March

Allied

Mortgage & Development Co., Inc.
Jan. 28, 1963, filed $2,000,000 of 6% subordinated sink¬
ing fund debentures due 1973 (with warrants) and 100,000 common, to be offered in units of one $20 debenture
(with a warrant to purchase two shares) and one com¬
mon
share. Price—By amendment. Business—Mortgage
banking, real estate development, and sale of insurance.

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

Brothers and

(5/21)

7/ Charter Oak Life Insurance Co. ;7/ •-u
;
r 1!
'
March 29, 1963 filed 500,000 class A:cpmmbn.,Price-^--$2.:

sale

and working capital. Address—Fifth Ave.,
Skagway, Alaska. Underwriter—Jay W. Kaufman & Co.,

—

Portland, Oregon. Underwriter—June
7 1 - 1
•
/■;
'

(jointly); BlythCo.-Kidder, Peabody & Co.-Merrill;
Lynch, Pierce, Fenner & Smith Inc. (jointly); Halsey,:
Stuart & Co. Inc.; Salomon Brothers & Hutzler; First;
Boston Corp.; Lehman Brothers - Bear, Stearns & Co.
> (jointly). Bids—May 21 (10:30 a.m. CDST)7at 20 No/
Wacker Dr. (21st floor), Chicago.
"•
'
^
7-'-*

,

April 24, 1963 filed $50,000,000 of debentures due May 1,
1984. Price—By amendment. Business—A sales finance
company which also makes personal installment loans
and provides the insurance incident to such financing;
Proceeds—For general corporate purposes. Address—320

New

Union

(5/13-17) '

$1 j000 debenture, 400 common, and 300 warrants. Regis¬
tration also
covers
an
additional 92,500
outstanding
common. Price
By amendment. Business — Company
furnishes electricity and telephone service to Alaskan
communities of Craig, Skagway, and Tok, and supplies
electricity to Seldovia. Proceeds—For debt repayment,

in Oregon and Washington.;
capital and surplus.; Office—b

Proceeds — For construction.;
Springfield, 111. Underwriters
—(Competitive) 7" Probable bidders:
Eastman Dillon/

Co., Inc., New York. Of¬

Investment Co.

insurance
additional

series I, due May 1, 1993,.
Office—607 E. Adams St.y

'
:/■->..
••.-v
.;?•;
A") $294,000 ,7% conv. subord:; de¬

1

life
Sixth,

Central Illinois Public Service Co.

*

Boland

R.

W.

S.

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

one

fering—Indefinite.

-

S. Jones Co., Portland.

due

of

.

1963 filed 260,000 capital shares.
Price—By
(max. $3). Business—Company is engaged

6,

writing

811

1972 and 29,400 common to be offered in
$1,000 debenture and 100 shares.
Price—
$1,020 per unit. Business—Manufacture of amplifiers and
accessory equipment for musical instruments.
Proceeds
—For inventory, equipment, debt repayment and new
products. Office—1570 W. Blancke, Linden,^N. J. Un¬

units

;

Co.

amendment

,

(5/7)

1, 1983. Office—195 Broadway, New
(Competitive). Probable bidders:

a;

as

Insurance

Life

Proceeds—For

(jointly). Bids—May 7 (11:30

bentures

The securi¬

common.

Nov.

due

Ampeg Co.

Telephone Co.

additional 180,000

March

qualify

to

Underwriter—None.

Centennial

7 - 77- 77777"'//■•_ :>7^//;/7;77

23J§,,2&5 Broadway, New York.

April 1, 1963 filed $600,000 of 6% subordinated deben¬
tures due 1978, 240,000 common, and 10-year warrants

purchase

;

and

water

Ind.

Lake,

in

Morgan Stanley & Co.; First Boston Corp.-Halsey, Stuart

Halsey, Stuart & Co. Inc.; First Boston Corp.; .Morgan
Stanley & Co. Bids—May 9 (11:45 a.m. EDST) at 115
Broadway (Room 1510), New York. Information Meet¬
ing—May 6 (2:30 p.m. EDST) at 20 Pine St. (10th floor),
New York.
./:// 'V''777/7. 7v

to

For investments.
C. Underwriter

Telephone & Telegraph Co.

York. Underwriters

S't., Birmingham.
Probable bidders:

Co., Inc.-Kidder, Peabody & Co. (jointly);.
Brothers; Eastman Dillon, Union Securities &
Co.-Equitable Securities Corp.-Drexel & Co. (jointly);.

Power &

—

April 22, 1963 filed $250,000,000 of debentures due May
1, 1999. Proceeds—To refund a like amount of 5% de¬

&

Alaska

//vs/'/v.;

Fund, Inc.

Corp. (same address).

Lehman

•

Pom- -

Business
public ^utility and
sewage
disposal services * in and
around Cedar Lake, Inc. Proceeds—To construct a sew-;
age- disposal system. Address—R.R.' N. 3, Box 28/ Cedar;

July 9, 1962 filed 94,500 common. Price—Net asset value.
Business—An open-end management company special¬
izing in life, health, casualty and accident insurance.
Proceeds—For investment. Office—1523 Kafgkaua Ave.,
Honolulu. Underwriter—American Pacific Management

7-4777-

-

Underwriters—(Competitive).

Blyth

real estate,

with

plans

—Company
furnish

Proceeds

company.

American Pacific

April 12, .1963 filed $16,000,000 of first mortgage bonds
due 1993. Proceeds—For repayment of bank loans, and
Ala.

•

corporate purposes. Office-^1068 S7 Ocean- Blvd.;
Beach, Fla. Underwriter-—None; 1
»/•

',

\

Office—300 St. Salisbury St., Raleigh, N.
—None.

(2:30 p.m.

6

/

.

Mortgage Insurance Co.

insurance

gage

EDST) at 20 Pine St. (10th floor), New York.

construction.

develop

pano

10, 1963 filed 31,070 common to be offered for
subscription by stockholders on the basis of one share
for each five shares held. Price—$18. Business—A mort¬

—

Power Co.

-

and consultant services to motels-and;
equipment.- • Proceeds—For, - general •

offer management

Jan.

preferred (par
$100). Proceeds—For repayment of bank loans, and con¬
struction. Office—600 North 18th St., Birmingham, Ala.
Underwriters
(Competitive). Probable bidders: First
Boston Corp.; Eastman Dillon, Union Securities & Co.Equitable Securities Co. (jointly); Blyth & Co.; Morgan
Stanley & Co.; Stone & Webster Securities Corp. Bids—
May 9 (11 a.m. EDST) at 115 Broadway (Room 1510),

Alabama

Fla.,< and

Canaveral,

furnish- them

Michigan; Corp.,

Underwriter—First of
:

American

>

(5/9)

Information

Mich.

Lansing,
Detroit.

April 12, 1963 filed 50,000 shares of cum.

York.

ISSUE
7

7
Cedar Lake Public Service Corp.
—Writing of ordinary life insurance. Proceeds—For in¬
vestment. Address—807 American Bank & Trust Bldg., / March 20,1962 filed 9,964 common. Price—$100:

Underwriter—None.

New

REVISED

a

1963 filed 154,000 common,' of which 125,000"
are' to
be offered by company and 29,000 by certain
stockholders. Price—By amendment (max. $7). Business

901 Fuhrmann Blvd., Buffalo, N. Y.

—

ITEMS

homes, apartment houses, motels, etc. Proceeds— ,
debt' repayment, and- expansion.':.Office—305^ Airisley,

7:7, American Annuity Life Insurance Co.

Hotels, Inc.

Alabama Power Co.

•

,

April 1, 1963 filed 200,000 common. Price—$5. Business
—Company owns and operates a chain of motor hotels,
apartment buildings and a shopping center/Proceeds—
For
loan repayment,
expansion and other corporate

•

PREVIOUS

For
Business—Company and
general real estate business with 7 Bldg., Miami, Fla. Underwriter—Willis E. Burnside &'
emphasis on land development and home construction r Co,,'Inc., New York. * '/>
"7/7 7V77 777 /77
in Fla., Md., N. Y., and Ky.
Proceeds—For repayment
■;
Career-Ways Systems,-Inc^y
.•
:~r
:
)
of debt.
Office—230 Park Ave., N. Y.
Underwriters— /
April 18, 1963 ("Reg. A")/ 100,00tf capital shares; Price,
•-To be named.
•'
•'
-/"./v./-.;, 7; /
/ 7:
7
*77 —$37. Business—Co. plans to"keep ah electronic filing,
:•
Amerel Mining Co* Ltd. ./ 77v. 77'*.' ;77.
system Of skills for employment of members.. Proceeds—';
July 31, 1961 filed 400,000 common shares. / Price—500.
For equipment, inventory, research and working capi7 •
Business—The company is engaged in. exploration, detal. Address—Route 206
PrmrMhw • N7JV Under¬
velopment and mining.* Proceeds^For diamond drilling, : writer—Chase Securities
^construction,... exploration, and - generalcorporate - 'ex- ^ >: Castle Hospitality
penses.
Office—80 Richmond St., W., Toronto, Under¬
Dec/ 14, 1962 filed $506,000 of . 8% debentures' .due 1969.
writer—E. A. Manning, Ltd., Toronto. 777//; 7 77/7777/'/;
Price—At par
($1,000).
Business—Company. plans to:

-

purposes.

SINCE

erect

March 29,

'■'7 Airway

ADDITIONS

//

Cape

near

*.

Price—At par.

subsidiaries conduct

the SEC since the last issue

r

subord. deben-

conv.

1963

Thursday, May 2,

.

.

Securities, Spokane. Offering—Imminent.

Nov.

26, 1962

("Reg. A") 46,000 common to be offered
stockholders on the basi3 of one share

Business—Sale of
surance.-

-Lindell
& Co;,
7#

St. Louis. Offering—Indefinite;"

Common

March

health, accident, life and hospital in¬
working capital./'Office—3570

Proceeds—For

Blvd., St. Louis/ Underwriters-Edward D. Jone3

Market

//

"

Fund, Inc. •-s>;;7 .7

7/1963 filed 2,000,000 Capital shares; Pricer—Net
plus 8.5%*. Business—A new mutual" fund

•asset:Value

specializing in securities of foreign- ahd ;Amemean. *:oom-

"7 Canaveral Hills Enterprises, Inc. (5/13)
-7 /
7 May 10, 1962 filed 100,000 common.\Price—$5. Business
—Company was formed to own and operate a country;/
club and golf course, swimming pool and cabana club/

Beverly Hills/ Calif / *. Underwriter—Kennedy, Cabbt &
C6/'(same address). Offering—Expected jh June/J////-'' *

Number 6260

197

Volume

x

Inc.

Community Health Associations,

12,

April

be

to

are

:

.

1963" filed 150,000 common, of which 100,000
offered by company and 50,000 by Harry E.

—None.'

Office—4000
None/

•

-

"r.

•

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

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

: - • • - v: ■?
6Vz% debentures due
1978 (with warrants);:also 75,000 units, each consisting
of two shares of 7% convertible preferred and one share ;■
!of common. Price—By amendment. Business—Leasing of
cars, trucks and equipment. Proceeds—For' debt repay¬
ment,.and other corporate purposes. Office—1012 Balti¬
(5/21)

Crowell-Collier Publishing Co.

11, 1963 filed $5,429,900 of 5% convertible subord.
due 1983, being offered for subscription by
common stockholders on the basis of $100 of debentures
for each 60 shares held of record April 18, with rights

March

debentures

•April 11, 1963 refiled $2,500,000 of

more

'■

Mo. Underwriters—A. C. Allyn
Walston & Co., New York.

—A

Broad

Underwriters

facilities.

note
East

;

J

v

(Monday)

May 6

•

-y

Real

Danac

:

Investment

Estate

.

y

.

(Tuesday)

; V;,*1 Vy/2

•

-/(Bids'

11:30

'

•

Safran

12

/(Bids

^$30,000,000

y

r

(Bids

•-

12

.

""

/

$10,000,000

CDST)

r»'fV-

2/ 2y y' y

Co.

Insurance

Poulsen

t

..

Common
Inc.)

$300,000

.

-—Common
;

(Thursday)
Service

Jim's

/.y/'

■

Common

Inc

Systems,

v,y//..;'/,

$100,000

(Keon & Co.)

(Monday)

Mountain States Telephone & Telegraph
(Offering

w;

to

:J..(A. C. Allyn & Co.) 1100,000 shares f
Southeastern Mortgage Investors Tr.__—-Ben. Int. "
;
(Fleetwood • Securities
Corp.
of America) $10,000,000

underwriting)

stockholdersr-no

4

June

America—.-.Common

of

Co.)' 225,720 shares

Inc.-

Stephen,

&

& Co., Inc.; Goldman, Sachs & Co.; and
Webster Securities Corp.)
110,000 shares

&

June 3

.

.

,

$10,000,000 ;

CDST)

noon

Exchange,

Lambert

(Tuesday)

May 30

*

'./•

v

/Chicago Uriibh Station Co.^____—."B" Debentures
(Bids 12

—2—-Common

Weld

Stone

Lord

'•y.vy

noon

»

*

.

•

Co./—'i/_22"A" Debentures a

Chicago Union Station
■/V:

;:

-

/i.—Debentures

Dow Jones & Co., Inct__-_
(White,

CDST) $29,000,000

noon

£40,000 shares
shares

Inc.) $250,000

and Watling, Lerchen &

Camera
(Ingram,

.Bonds

Union Station'

^Chicago

Inc.>' 50,000

Co.,

Corp

(White, Weld & Co.

,

:

&

Rose

Printing Co.—-—-,

United

'

-

y

:

;i.—__^_Common y

(Reuben Rose & Co.,

X

*:

30

'

•

'

on page

shares

1,000,000

(Wednesday )

15

May

■

////: - "

$250,000,000

EDST)

Co.)

Management

Lee

f

Continued

•

.

,

Penner & Snaitli inc.)

Pierce,

(Reuben

Rona

.

•

Corp._^_Common >

Lee

*7

:

Common

(Bids 11 a.m. EDST)

-

J

Telegraph Co.__——Debs,v

a.m.

Rothschild

Virginia Electric & Power Qo.^

Inc.) ••

y/yj

\Rona
">

;

Company

debt repay-

Proceeds—For

Inc

Kap,

"(Mefrlli Lynch,

(Tuesday)

.

May.7

Red

May 28

Niiveerr Tax-Exempt Bon<f Fimd, Series 4—-Units
J///J-j y/J
(John Nuveen & Co.)t"$15,000,000;' ,'y''--.-/ y\"yy;: v .
y Underwriters/.National Assurance Co....Common ^ Z

American Telephone: &

\

Inc.

Fund,

Stock

14

May

'

:

ownership.

and

properties.

apartment

y

____Class A

(Provident

.

Inc.—.——Common

stockholders—underwritten by Blair .& Co.,
i.-;•.
/« '"108,700 shares " y '
to

development

.shares.

& Co., Inc.).

F. Huttoh

_

Provident

.

Liberty Fabrics of New York,

and

Inc.;

Corp.____^—..______i_-^_—Common-

■

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

..

(5/6-10)

Corp.

plans to deal primarily in commercial, light industrial

"

(Ferris & Co.) $1,500,000 yy/y
Exchange Fund of Boston, Inc
—....Common ;*;?•/t.
.-('Vance; "Sanders & Co., Inc.)., 1,100,000 shares :yy j..":'
Gulf Oil Corp.-—2---——————Capital Stock :
(First Boston Corp.) 3,441,880 shares -y:- v - :•

"-(Offering

v

(Offering to stockholders—underwritten by L. F.
& Co.)
61,584-shares

yy

-

estate

—Real

(Bids

-

-

(E.

/'■
Common

Corp

-

Co.,

&

—

1, 1963 filed 150,000 common. Price—$10. Business

Feb.

Nashville RR.——Equip. Trust Ctfs. >
noon EDST)
$5,385,000
* V' ' * ' : ~

&

'

Pall Corp.

>

Bank "Adanim" Mortgages &
y'-.'.-".
'
(Sakier & Co., Inc.) $280,728.99

■

National

Mil

.

i rLoans, Ltd.--Jii.Pref;

i;

-;

"

Smith, Barney

—

Business

par.

Danac Real Estate Investment

•
.

V Rational. Fidelity Life Insurance CoL-/--Common-:

—Bonds,

,;$25,ooo,ooor

'

'

•

;

//— (Bidslf a.m.; £DST)

»//-;

/

At

—

of, various types of educational texts and

& Co., Inc.; Harriman Ripley & Co.-, Inc.,
and Lazard Freres & Co., New York. •

Louisville

CoZ oL Califbrnia—.

" 1

1

•

,

Price

3.

May

expire

vKuhn, Loeb

>

General /Teiephone

* '

' V\

(5/22)

(City of)

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

Avie.y:Deiriver. Underwriter—None.

^^Mayl2%(Thu^

Philadelphia. Underwriter—Gerst-

St.,

Copenhagen

Business—Company is engaged in the

acquisition of oil and gas leaseholds. Proceeds—For
repayment: and working capital. Address — 4150
•Mexied

S.

ley, Sunstein & Co.y Philadelphia.

be offered for sub¬

scription by common stockholders on the basis of $500
of debentures for each 500 shares held of record March
,31. Price—At par.

to

cation

investment/Office

mutual fund. Proceeds—For

new

—211

sinking fund deben¬

Feb. 28, 1963, filed $2,483,500 of .6%
tures due 1975 (with warrants)' to

Publi¬
related
materials, and the operation of a home study school and
radio broadcasting facilities. Proceeds — For working
capital and loan repayment. Office—640 Fifth Ave.,
N. Y. Underwriter—Carl M. Loeb, Rhoades & Co., N. Y.

1962 filed 500,000 common. Price—$10. (For an
will also offer its shares in ex¬
change for acceptable securities on the basis of one
share for each $10 market value of securities). Business
Dec. 21,

initial period the fund

Consolidated Oil & Gas, Inc.

•

'

(5/13-17)'

Ave., Kansas City,

Co., Chicago and

Investment, Inc.

Mutual

Consultant's

•

working

and

repayment,

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

,■

,

and transporting super cold

.

Consolidated Vending Corp.

yy

America

Consolidated Leasing Corp. of

•

41;V'.

"

'

.

(5/7)

Corp.

29

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

New York. Underwriter

ment. Office—420 Madison Ave.,

promotion, and other corporate purposes.
Aurora Ave., Seattle, Wash. Underwriter—

sales

Cosmodyne

Consolidated Resources Corp.
March 29, 1963 filed 79,700 common. Price—$6. Business
—An insurance holding company. Proceeds—For invest¬

Wilson, President. Price—$15. Business—Sale of hospital
and surgical insurance contracts. Proceeds—For invest¬
ment,

(1821)

Financial Chronicle

.The Commercial and

.

.

Co.—Cap.
shares

4,037,432

(Tuesday)
—.Equip. Trust Ctfs.

Southern Pacific Co.—
(Bids

12

$8,100,000

EDST)

noon

.

y Cosmodyne Corp..,. —.i/i--vL
...Common
/ /(Merrill Mynchj Pierce, Fenner & Smith Inc.) '150,000 shares
Eazor Express,
*,
(W. E. Hutton & Co.)
$i,437,500
:
f'/C.v/'"'

.Common
(M. G. DaVis & Co., Inc.) $240,000
- * - ■«
Inc

Vend-Mart
y

•

,

June 6

—

Investment
'''.-A-'-.'/i

Corp.

'——
(Troster, Singer & Co.) $955,293

>

•

&

Management

Insurance

'Manchester

Co.)

&

Allyn

C.

;

.,r

—Common

,

(Stone,

(Bids

12

Weeks)

&

and Paine,

(Bids

11:45

(Bids

•

Halo Lighting,

11

$16,000,000

EDST)

&

Common

Ripley

Inc.)

Co.,

Power

Interstate

/

Power

&

Co.)

"

Salomon

and

(A.

Debentures

(McCormick

Big

G

Byllesby

M.

100,000

Co.)

&

(Willis

Enterprises,
Burnside

E.

Electronics

Chemair

&

Common

Freoplex,

Inc..

Brothers)

(Lehman

80,000

shares

(Drexel

V

(Offering

to

200,000

Co.)

Co.,

by P.

$499,988.75

Inc.)

(Equitable

Home

Securities

Entertainment
(Bernard

Hunsaker

M.

Corp.)

Co.

Kahn

&

of
Co.,

shares

$200,0OO

(Bateman, Eichler. & Co..) $1,500,000

Life Assurance
(Auchincloss, Parker
-

.

Lunar

......

-

.'

&

Films, Inc.

&
Co.)

Williston & Beane) $1,700,000

Redpath

Orr
.

(J. Herbert)

Arthurs,

,y

Lestrange

—_—Bonds

Illinois Gas Co.—
(Bids

Stephen, Inc.) $718,750

Inc.) $1,050,000

.

.

to

be

received)

$20,000,000

,

7

(Thursday)

Bonds

Georgia Power Co—
(Bids

«

Common

-.Bonds

Electric Co

(Bids to be received) $45,000,000

November

100,000 shares

Enterprises, Inc

Bonds
$50,000,000

July 10 (Wednesday)
Northern

Indiana & Michigan

————_———Common

(First Alabama Securities,

received)

August 6 (Tuesday)

......Common

and

be

to

Debentures

:and Shelton Securities

(Ingram, Lambert &

Units
v.

:y
>'

-

$3,000,000

(S. V.) & Sons—




:

.

America—-Common
Inc.)

Inc.)

Co.) $308,750 K
Co. of Pennsylvania.-Capital Stock

Common '
420,047

$5,000,000

Service, Inc.

ySeymour Blauner Co.

L. Putnam

Holiday Inns of America, Inc..

Co.,

—Common

Debens.

Inc

Resorts, Inc

(Boettcher & Co. and J. R.

Key Training

Common

stockholders—underwritten
&

*

shares

Co

Gas

Greenwich

&

&

Bonds
$40,000,000

(Tuesday)

»

Common

Systems, Inc.—

Security

Co.,

Debentures

Holiday Mobile Home

•
<"

Globe

Rubber

(Alessandrini

Common

Co

Products

Biltrite

received)

be

(Thursday)

(Bids

American

$5,000,000

Co.)

to

Illinois Bell Telephone Co

:

(Goldman, Sachs & Co.)

Inc

(Wednesday)

California Gas Co

$2,700,000

EDST)

(Monday)

Units

—Bonds

Natural Gas & Oil Producing Co
(Peter Morgan & Co.) $900,000

—Equip. Trust Ctfs.

noon

(Tuesday)

(Bids

July 9
May 27

$500,000

$180,000

Investments,

Sunstein

(Gerstley,

...—Preferred

Central RR
12

$4,300,000

EDST)

50,00Q shares

(Thursday)
(Bids

Common

Inc.)

Corp.__

Mutual

June 26

Southern

units

Inc

Co.,

&

Investing Co.)

(Price

Consultant's

1,000

Co.)

Davis

J.

Hills

Canaveral

New York

shares

Units

Corp
(A.

Ekco

H.

and

Co.

Equip. Trust Ctfs.

noon

.

June 27

May 23

Common

King Corp
&

v

—Debentures
$5,200,000

Co.)

Co.)

&

.Bonds

Hutzler)

Brothers &

$50,000,000

Air

Allyn

C.

12

Union Light, Heat & Power Co,..:
(Bids' 11 a.m. EDST) $6,500,000

"*

-v'."-

—

Co.____:
&

June 25

EDST)

$60,000,000 "

PDST)

a.m.

Allyn

C.

Co

Southern Union Gas Co...

(Monday)
Brothers

(Lehman

Berns

.Bonds

(Monday)
(Bids

Common.

Edison

Southern Union Gas
(A.

May 13

8:30

(Bids

$400,000

Associates Investment Co

(Tuesday)

$6,000,000

EDST)

a.m.

Co.

California

Southern

.

—Debentures

Inc

(Oppenheimer

Bonds

...

$9,000,000

EDST)

Norfolk & Western Ry

-Bonds

—

(Offering to stockholders—bids 11:30 a.m;
yy-y y Vy;' y'y.yy
154,914 shares

-Class A

25,000 shares

(Oppenheimer & Co.)

Co

Interstate

June 24

Harriman
$15,000,000

Kuhn, Loeb & Co., Inc.;

and Lazard Freres '& Co.)

Inc.,

(Bids 11

(Friday)

Industries,

&

shares

^

18

June

Bonds

(City of)

(Smith, Barney & Cq., Inc.;

Co.,

a.m.

Public Service Electric & Gas Co
(Bids 11 a.m. EDST) $40,000,000

(Wednesday)

Copenhagen

Common

Robert W. Baird &

and

11

'

150,000 shares

Inc.)

Industries, Inc

Sternco

..Common
150,000 shares

& Weeks)

Co

Power

(Bids

.

Inc

Products,

May 22

Inc.—

200,000

10

Pennsylvania

Equip. Trust Ctfs.
$6,600,000

EDST)

noon

(Hornblower

$5,000,000

EDST)

a.m.

Weeks

75,000 units

Co.)

:

.

Mortgage Guaranty Insurance Co
(Hornblower

Maradel

Units

America

Walston &

and

Co.,

Pacific Telephone & Telegraph Co
Common
(Offering to stockholders—Shares of Pacific Northwest
Bell Telephone Co.—Ho underwriting) 13,013,969 shares

$2,500,000

& Co.)

and Walston

150,000 shares

(Wednesday)

June 12

of America.-Debens.

Preferred

Becker & Co.,

(A. G.

&

$10,000,000

CDST)

Corp.

Great Northern Ry

Bonds

a.m.

Alabama Power Co._

Sternco

Allyn

(Bids 12

Co

Power

Alabama

May

C.

(A.

(Thursday)

May 9

(Reinholdt & Gardner))

a.m.

Allyn & Co.,

C.

Com.

:Shipbuilding-Federal Barge, Inc

St. Louis

Consolidated Leasing Corp. of

& Co., Inc.; Stone & Webster Securities
Webber, Jackson & Curtis) 34,000 shares

Peabody

(Kidder,

Corp.;

(A.

Common

Co

Upper Peninsular Power

10:30

Leasing

Consolidated

shares

200,000

$20,000,000

EDST)

a.m.

Bonds

Co

Service

Public

Illinois
(Bids

...Common

General Automotive Parts Corp._^
(Hornblower

11

Debentures

Co., Inc

Indiana Bell Telephone

(Tuesday)

May 21
Central

$5,400,000

$240,000

Inc.)

(Tuesday)

June 11

Common
shares

(Bids

CDST)

noon

Securities

(Bristol

(Wednesday)

Chicago Burlington & Quincy RR.
Equip. Trust Ctfs.

:

•/'//-y
33,383

Sons)

&

Brown

.

Common

Enzyme Corp. of America

Common

and Heritage Equity Corp.)

Inc.,

Heather, Inc

Howell &

Peterson,

(Alex.

May 8

;

(Monday)

June 10

$1,500,000.

—

Ackerman & Co.,

y/y :$420,000

shares

300,000

—.Common

Corp.)

Securities

(Consolidated

Optech, Inc.

• ;

,

—1—

Florida Jai Alai, Inc..

Stock

Gtee.

.Debentures

.

(Monday)

May 20

3

Life Insurance Co._____Common

Missouri Fidelity
(A.

'

>

,,,

50,000 shares

Inc.)

& Co.,

Peabody

(Kidder,

Co.—

Insurance

Life

Manhattan

,

(Thursday)

Columbia Gas System, Inc.—-—2
;
y
•' (Bids to be received) $25,000,000

,

to be received)

Georgia Power Co
.

^

(Bids

to

$30,000,000

—Preferred
be received) 17,000,000.

.

-,-y *

•

The Commercial and Financial Chronicle

30

Continued from page

ment, and other

"Clinizyne" to be used for treatment of a variety of
tumor related diseases. Proceeds—For equipment, sales

29

Defenders Insurance
Jan. 30,

Co.

ital. Office—727 Land Title Bldg.,

-

1963 filed 100,000 common.

—

Country Rd.,

Price—$12*50. Busi¬

automobile insurance
purposes. Office—146

Company plans to write
Proceeds—For general corporate
Old

Miheoia, N. Y. Underwriter—None.
\

Corp..

Deuterium

^

•Sept. 28, 1962 filed 120,000 common with attached war¬
rants to purchase an additional 120,000 shares to be ofered for subscription by holders of its stock and deben¬
tures in units (of one share and one warrant) oh the
basis of 3 units for each 5% prior preferred share held,
2 units for each 5% preferred A stock held and 40

non-interest bear¬
ing subordinated debentures held. At the same time, the
company will offer the securities to the public. Price
To subscribers, $20; to public, $22.25. Business—Com¬
pany plans to erect a small size production and experi¬
mental plant for the limited manufacture of deuterium
and deuterium oxide, and to establish and equip a gen¬
eral research laboratory. Proceeds—For working capital,
$1,200 face amount of

units for each

Collateral

Diversified

13, 1962 filed 77,050 common.

ment

(max. $11.75).

•

March

,

waukee.

April

bers.

Proceeds—

Sept. 27, 1962 filed 100,000 common. Price—By amend¬
(max. $6.75).
Business—Mining and processing
of crushed granite, lime rock, and agricultural limestone.

Pratt

77

-...-v

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

Business—Research, development and construc¬
tion of experimental helicopters. Proceeds — To obtain
certification of models, train service personnel, repay
debt, etc. Address—Municipal Airport, Danbury, Conn.

$1.25).

Note—The

Underwriter—None.
order

SEC has issued

•

suspending this registration statement.

holders.

Price—By amendment

(max. $12).

50,000 are
by stock¬
Business-

Design and manufacture of boys knit shirts, sweaters,
pajamas. Proceeds—For working capital. Office—
1115 Broadway, N. Y.
Underwriter—Goodbody & Co.,
New York.
Offering—Indefinitely postponed. "...

and

Duro-Test Corp.

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

poned.

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

of

electronic

for

devices

Price—$1

electro-mechanical
medical

and

Busi¬

vehicles

marine

and

purposes.

Proceeds—For

payment,

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

Underwriter—None.
• Eagle's Nest Mountain Estates, Inc.
April 1, 1963 filed $400,000 of 8% subordinated convert¬
ible debentures due 1983, and 400,000 common, of which
300,000 are to be offered by company and 100,000 by

stockholders.

The securities will be offered in

units

of

$100 debenture and 100 shares. The registration also
covers 600,000 outstanding common. Price — $350 per
unit. Business—Company owns a 781 acre tract in Hay¬
wood County, N. C., on which it plans to build houses, a
motor lodge, restaurant and an amusement complex.
Proceeds
For construction, debt repayment, working
capital and other corporate purposes. Office—2042 South
Atlantic Ave., Daytona Beach, Fla. Underwriter—Alpha

one

—

Investment
statement
•

Securities, Inc., Atlanta, Ga. Note

was

—

This

withdrawn.

Ekco Products Co.

(5/13-17)
April 22, 1963 filed 80,000 common. Price—By amend¬
ment (max. $30). Business—Manufacture of housewares,
commercial equipment, aluminum foil containers and
baker pans. Proceeds—For selling stockholders. Office—
1949 N. Cicero Ave., Chicago.
Underwriter — Lehman

Brothers, New York.
Electronic
Jan.

Dispenser Corp.
29, 1963, filea oO.OOO common. Price—$2. Business

—Manufacture of the SAFER Butter
Chipping machine,
and processing of tray-forming and
chip-covering mate¬
rials. Proceeds—For operating expenses,
equipment, in¬

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

Enzyme Corp. of America (6/10-14)

Feb. 21, 1963, filed 120,000 common.
Price~$2. Business
—Company plans to market a new drug known as




Gotham Educational Equipment Co.
-

and

payable. Office—3600 W.
Underwriter—None.

Israel

Mutual Fund 7

15,

Price—By amendment
(max. $6). Business—Design, manufacture, and marketing of items used in educational institutions such as
chalk boards, exhibit cases, etc: Proceeds—For general 7
corporate purposes/ Office — 91 Weyman Ave., New
Rochelle, New York. Underwriter—To be named. Offer¬
ing—Indefinite.

—To

Greater Miami Industrial Park, Inc.
Feb. 25, 1963, filed 136,094 common to be

20, 1963, filed 3,000,000 common. Price—$2. Busi¬
ness—Company plans to operate subsidiaries in the fields
of banking, insurance, finance, etc. Proceeds—For
gen¬
eral corporate purposes. Office—1107 Federal Securities

Building, Lincoln, Neb. Underwriter—None.
Greenman Bros., Inc.
April 25, 1962 filed 150,000 common, of which 50,000 are
to be offered by company and
100,000 by stockholders.
Price—By amendment (max. $7). Business—Wholesale
and retail distribution of toys, hobby lines and
sporting
equipment. Proceeds—For debt repayment, inventory
and working capital. Office—35 Engel
St., Hicksville,
N. Y. Underwriter—J. R. WillistOn &

Offering—Indefinite.

(5/27-31)

(5/8)
Price—By amend¬

ment (max. $15). Business—Distribution of automotive
replacement parts. Proceeds—For debt repayment, and
other corporate purposes. Office — 2011 Cedar Springs
Rd., Dallas. Underwriter—Hornblower & Weeks, New

York.

General

;

'

.

..

-

••

Design Corp.
April 25, 1962 ("Reg. A") 65,000 common. Price—$3
Business—Design and development of new products for
various
industries.
Proceeds—For
debt
repayment,

" 7;7 77 7:/*;

■

.■/ 777

-Corp. (5/6) .7" '7/ 7:,'
'
-;v
April 16, 1963 filed 3,441,880 capital shares. Price—By
amendment (max. $47). Business—Production, purchase,
transportation, refining and marketing of petroleum, and
products derived thefefrom, including petrochemicals.
Proceeds
For selling stockholders.
Address — Gulf
Bldg., Pittsburgh, Pa. Underwriter—First Boston Corp.,
—

New York.

Office—1180 Raymond Blvd., Newark, N. J.

General Automotive Parts Corp.
March 28, 1963 filed 200,000 common.

::7:7//'

■

Gulf Oil

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

•

,7;'

1

•<

Geigher Pipe Supply Inc.
Sept. 28, 1962 filed 60,000 class A common, of which 50,000 are to be offered by company and 10,000 by stock¬
holders.
Price—$9.50.
Business---Sale of steel pipes,
valves and fittings. Proceeds—-For inventory. Office—
4124 N. Broadway, St. Louis. Underwriter—Midland Se¬
curities Co., Inc., Kansas City, Mo. Offering—Indefinite.

J5/13) ;

Co., Inc., Boston.;7/v "■ ■>.! 77v'

Garden State Small Business Investment Co.

Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
Offering—Temporarily postponed.

Co.

share for each 5.6 shares held. Price—$13l25. Business
—Distribution of gas, and gas appliances in Greenwich.
Proceeds—For loan repayment. Office—33 Greenwich
Ave., Greenwich, Conn. Underwriter—F. L. Putnam &

18, Tices Lane, East Brunswick, N. J. Under¬

investment.

Gas

37,735 -common, to be offered for
subscription by stockholders on the basis; of one new

Offering—Indefinite.

,

Greenwich

.

Beane, New, York.

"

March 29, 1963 filed

Ave., Bronx. N. Y, Underwriter—Mc¬

writer—Alessandrini & Co., Inc., New York.' 77

for

Feb.

Jan. 2, 1963 ("Reg. A") $200,000 of 7% convertible sub¬
ordinated debentures due March 1, 1975. Price—At par.
Business—Operation of retail meat supermarkets. Pro¬
ceeds—For debt repayment and working capital. Address
—Route

offered

,

& Sons, Inc.
/
March 23, 1962 filed 125,000 common. Price—By amend¬
ment (max. $15).
Business—Wholesale distribution of
toys and games. Proceeds—For selling stockholders. Of¬

Inc.

/

f

Greater Nebraska Corp.

(Alex)

Freoplex,

known

subscription by stockholders on the basis of one share
for each 4^ shares held. Price—$5.50. Business—Acqui¬
sition and development of real estate. Proceeds — For
general corporate purposes. Office—811 duPont Plaza
Center, Miami, Fla. Underwriter—None.
V
/

Price—$5. Busi¬
Operation of Jai Alai games and pari-mutuel
betting, Proceeds—For rent, purchase of leased quarters,
building improvements, working capital. Office—Fern
Park, Fla. Underwriter—Consolidated Securities Corp.,
Pompano Beach, Fla.
/

•

Underwriter

be named.

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

as

—

Donnell & Co., New York.

Office—530 St. Paul PL, Baltimore.

ment.

Florida Jai Alai, Inc. (5/20-24)
June 28, 1962 filed 300,000 common.

fice—2885 Jerome

-

Real Estate Investment Trust

Aug. 3, 1961 filed 300,000 shares of beneficial interest.
Price—$10. Business—Real estate. Proceeds—For invest¬

—For debt repayment, construction, purchase of prop¬
erty, and other corporate purposes. Office — 700 West
Campbell Ave., Phoenix. Underwriter—None.

Forst

■'

Great Continental

March 27, 1963 filed 400,000 capital shares. Price—$1.50.
Business—A real estate development company. Proceeds

ness

Inc.

Dec. 4, 1962 filed 75,000 common.

Flori Investment Co.
.

:

•

selling stockholders. Office—2011 Walnut St.,
Philadelphia. Underwriter—Drexel & Co., Philadelphia.

terest.

"Donmoor-lsaacson, Inc.
Feb. 26, 1962 filed 150,000 common, of which
to be offered by the company and 100,000

ceeds—For

1962 filed 2,750,000 shares of beneficial in¬
Price—By amendment (max. $10). Business—
A mutual fund which plans to invest primarily in equity
type securities of Israeli companies. Proceeds—For in¬
vestment. Office—l4l Milk St., Boston. Underwriter—
Paine, Webber, Jackson & Curtis, Boston. Offering—Ex¬
pected- in June.
7;''7; /■ 77

Aug.

stop

a

First American

Proceeds—For debt repay¬

• Globe
Security Systems, Inc. (5/13-17)
^
April 17, 1963 filed 200,000 common. Price—By amend¬
ment (max. $13.75).
Business—Furnishing of uniformed
guards, plant protection and investigatory services. Pro¬

Fidelity Mining Investments Ltd.
Noy.J 30, 1961^filed .800,000 common. Price—By amend¬
ment. Business—Exploration and testing of mining prop¬
erties. Propeeds--Fof general corporate purposes. Office
—62 Richmond St., Toronto. Underwriter—G. V. Kirby
& Associates, Ltd., Toronto.

Helicopters, Inc.

Doman

Ave., Chicago.

,

expansion, research, and inventory. Office—545
Cedar Lane,
Teaneck, N. J.
Underwriters^—Winslow,
Cohu & Stetson and Laird, Bissell & Meeds, N. Y.

and reduction of accounts

ers

-

ment,

-

Business—Design

7" 7 *>v

;

Devices, Inci

in construction.

used

oeams

repayment, working capital
Office—1575 Sherman St.,

$15).

7

1962 filed 100,000 common. Price—$10. Busi¬
ness—Manufacture, sale end lease of steel supports and

.

This registration will be

withdrawn.

(max.

>

June 29,

manufacture of tools, dies, molds, beryllium castings and
the distribution of plastic, metal and glass products for
home use. Proceeds—For a recession offer to stockhold¬

repayment, and working capital.
Ocala, Fla. Underwriter—Courts
—

For debt

amendment

—By

Office—11 N. Main St.,

Ga. Note

—

Fedco Corp. :""
; "•>7 •./
'7*
Oct. 29,1962 filed 20,000 common, of which 17,500 are to
be offered by company and 2,500 by a shareholder. Price

ment

Co., Atlanta,

Proceeds

Global Construction

;

serial deben¬

Denver. Underwriter—None.

Dixie Lime & Stone Co.

&

5V2-6%

;

_

and advances to subsidiaries.

equipment, leasing of working space, advertising,
and working capital. Office—42 Broadway, N. Y. Un¬
derwriter—A. J. Gabriel Co., Inc., New York.
For

loan

filed $5,500,000 of

1963

.

Santa Monica Blvd., Santa
Monica, Calif. Underwriters
—(Competitive). Probable bidders: First Boston Gorp.; Equitable Securities Corp. (jointly); Haisey, Stuart &
Co.
Inc.; Paine, Webber, Jackson & Curtis-Stone &
Webster Securities Corp. (jointly); White, Weld & Co." Kidder, Peabody & Co.' (jointly). Bids—May 2 (11 a.m.
7EDST) at 730 Third Ave., New York. Information Meet¬
ing—April 30 (3:45 p.m. EDST) at same address.

tures, series E and F, due 1974-83. Price—At par. Busi¬
ness—A non-profit organization of farmers devoted to
the economic and educational betterment of its mem¬

16, 1963 ("Reg. A") 67,000 common.
Price—$3.
Business—Manufacture of a lightweight structural board

Proceeds—For

1,

;

;

77v

:

v

/

Educational & Co-operative Union of
'America
.77
7'r7*.;7

v...

-•

(wallboard).

'7

~

Hopwoqd, Minneapolis.-

General Telephone Co. of California (5/2) 7
April 10, 1963 filed. $25,000,000 of first mortgage bonds
\ due 1993. Proceeds-^-For repayment of loans due Geriersft
-Telephone & Electronics Corp., parent. Office —2020

Farmers'

investment. Office—8397 N. E.
Underwriter—None.

insulating material

.

Corp. of Wisconsin

-/

Exchange Fund of Boston, Inc.-(5/6)
j :
March 27, 1963 filed 1,100,000 common to be offered in
exchange for certain acceptable securities on the basis
of one new share for each $27.50 market value of de¬
posited securities, less a sales charge of from 4% down
to lJ/2%. Business—A new mutual fund seeking longterm growth of capital and income. Proceeds—For in¬
vestment. Office—111 Devonshire St., Boston. Under¬
writer—Vance, Sanders & Co., Inc., Boston.
v ^

Jan.

sheet

,,

&

>

•

Price—By amend¬

Diversified Resources, Inc.

:

-

29,1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50).
Business—A holding company for
firms selling life insurance and-mutual funds. Proceeds
—For new sales offices, advances to subsidiaries and
working capital. Office—5150 Wilshire Blvd., Los Angeles.
Underwriter—Wisconsin-Continental, Inc., Mil-

Insurance

—

•

.

Equity Funding Corp. of America 7

Life

General

6, 1963 filed 311,625' common being offered for
subscription by stockholders on the basis of one ne\y
/share for each four held of record April 10, 1963.
Rights will expire May 10.
Price — $3.25.
Business
—Writing of life • and endowment policies. Proceeds
For general; corporate purposes. Address — 8500 W.
Capital Dr., Milwaukee. Underwriter — Piper, Jaffray

>

March

Business—A real estate investment

company. Proceeds—For
Second Ave., Miami, Fla.

;

Equality Plastics, Inc.
April 4, 1963 ("Reg. A") 79,995 common. Price~-$3.75.
Business — Importing, manufacturing and distributing
general merchandise "notions." Proceeds—For debt repayment, inventory and working-capital.: Office—286
Fifth Ave., New York. Underwriter—J* J. Krieger & Coi,
Inc.,"New York.
,/ -'V
>;. ■. „v/•
'/"-i V: ;v
• 7"7

Corp.

June

and

Thursday, May 2, 1963

.

Harris & Co., Inc^ Philadelphiar Note^-The SEC* has
sued an order -temporarily suspending this issue. '

writer—Bristol

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

.

equipment and working capital. Office—1252 W. Peachtree St., N. W., Atlanta, Ga.; Underwriter — Robert M.
is¬

promotion, research and development, and working cap¬
Philadelphia.' UnderSecurities Inc.# New York. ^

corporate purposes. Office—17^0 Chap¬
Md. Underwriter — Ferns & Co.,

Ave., Rockvilie,
Washington, D. C.

man

ness

.

(1822)

:

;

7,': 7;

,

;

Hallandale Rock & Sand Co.

March 30,1962 filed $250,000 of 8% subordinated deben¬
tures due 1977, 200,000 common and 6-year warrants to

purchase 25,000

common at $1 per share to be offered in
consisting of a $10 debenture, 8 common shares and
one warrant Price—$18 per unit.
Business—Extraction,
processing and sale of rock and sand. Proceeds—For a

units

new

plant and other corporate purposes. Address—Hal¬

landale, Fla. Underwriter—To be named.
• Halo
Lighting, Inc. (5/9)
April 15, 1963 filed 150,000 common, of which 65,000 will
be sold for the company# and 85,000 for Robert S. Fre¬
mont, President Price — By amendment (max. $10).

Business—Manufacture

of recessed incandescent light¬
ing fixtures for residential, commercial and institutional
buildings. Proceeds—For debt repayment, a new plant,
and working capital. Office — 4201 West Grand
Ave.,
Chicago. Underwriter—A. G. Becker & Co., Inc., Chicago.

Hartford Gas Co.

April 5, 1963 filed 80,000
scription by stockholders

common
on

to be offered for sub¬

the basis of

one

new

share

Number 6260

197

Volume

.

.

.

June

address).

Price—By amend¬

1962 filed 125,000 .common.

7,

Del. Underwriter—Israel Fund

Inc.

Heck's Discount Centers,

.

Diversified Fund,

X

..'

•„

Lunar

Distributors,. Inc. (same

production and working capital. Ofriee—
New York. Underwriter — Ingram,
Lambert & Stephen, Inc., 50 Broad St., New York.

filming

Inc.

Madway Main Line Homes Inc.
19, 1963 filed 100,000 common. Price—By amend¬

Feb.

tion and financing of manufactured homes. Proceeds-XTo
finance future credit sales of homes. Office—315 E. Lan>

caster

Home Resorts, Inc.

(5/27) X\~.

Business—Development and operation of
throughout U. S, Proceeds—For
debt repayment, construction, and other corporate pur¬
poses. Office — 4344 East Indian School. Rd.,' Phoenix.
Underwriters—Boettcher & Co., Denver, and J. R. Wilr
—$68 per unit.
home

mobile

liston &

resorts

Beane, New York.

;

/.

• •.

equity capital to firms in the atomic, space and
fields, and provide advisory and management
counseling services on a fee basis.
Proceeds—For re¬

Home

.#

IV.

Entertainment Co. of

derwriters

]

1972,

due

Price

—

bution

—Company is

$800

ox

and

per

seoaine

inventories,
Office

2301

—

ox

of

consisting

•inits

300,000 common. Price—$10. Business
engaged in the development and promo-,
tion of a pay television system in Santa Monica, Calif.
Proceeds—For installation of a pay television system.
Address
19th and Broadway, Santa Monica, Calif.
Underwriter—Bernard M. Kahn & Co., Inc., New York.

&

a

unit. Business

—

Processing and distri¬

rrvceeds—J? or

seeu

Kwik-Kold,

accounts

receiv-

Inc.
5,000 shares of 6%
preferred stock, and 5,000 common, to be

non-cumulative
offered for sale
in units of one common and one preferred share. Price
—$150 per unit. Business—Company plans to construct
and operate a beef and pork packing plant. Proceeds—
construction, equipment,

For

dress—Beatrice, Nebr.

and working

be withdrawn.

Underwriter—None.

;

—

Inc., (same address).

& Sons (5/13-17)
X-Xv
$1,500,000 of 6V2% convertible sub¬
ordinated debentures due May l, 1978, and 150,000 com¬
mon shares to be offered in units of one $50 debenture
Hunsaker

*

(S. V.)

.

April 19/1963 refiled

and five shares.

Price—$50 per unit.

Business—Construc¬

'

: ■" *:
"' •' •'' ■ >!'
1,605,100 shares of beneficial interest.
Price—(max. $10). Business—A real estate investment
company. Proceeds—For investment. Office—450 Seventh
Ave.. N. Y. Underwriter—Van Alstyne, Noel & Co., N. Y.
Interstate Equity

March 30, 1962 filed

Interstate Power Co.

•

X

X,v

Offering—Indefinite.

.

•

(5/22) .'.XX. ;X#

21, 1963 filed 154,194 common to be offered for
subscription by stockholders on the basis of one new
share for each 26 held of record May 22, 1963. Price—

March

By amendment (max. $24). Proceeds—For loan repay¬
ment and construction. Office—1000 Main St., Dubuque,

Underwriters—(Competitive.) Probable bidders:
Kidder, Peabody & Co.; Merrill Lynch, Pierce, Fenner
& Smith Inc.; Ladenburg, Thalmann & Co.; White, Weld
& Co. Bids—May 22 (li:30 a.m. EDST)at One Chase Man¬
hattan Plaza 23rd Floor), New York. Information Meet¬
ing—May 13 (3 p.m. ED ST) at One Chase Manhattan
Plaza
(28th Floor), New York.

Iowa.

Interstate Power Co. (5/22)
X
21, 1963 filed $6,000,000 of first mortgage bonds
due 1993. Proceeds—For loan repayment and construc¬
tion, Office—1000 Main St., Dubuque, Iowa.
Under¬
writers
(Competitive.) Probable bidders: Merrill
Lynch, Pierce, Fenner & Smith Inc.-Kidder, Peabody
& Co.
(jointly); Halsey, Stuart & Co. Inc.; Salomon
Brothers & Hutzler; White, Weld & Co. Bids—May 22
(11 a.m. EDST) at One Chase Manhattan Plaza (23rd
floor). New York. Information Meeting—May 13 (3 p.m.

X

March

—

EDST) at One Chase Manhattan

Plaza (28th floor), N. Y.

May 31, 1962 filed 200,000 shares.
—A real estate investment trust.
struction

Price

—

Proceeds

$10. Business
—

For con¬

investment. Office — 3315 Connecticut
Washington, D. C. Underwriter—None.

and

Ave., N. W.,
Investors

Trading

Co.

.

17, 1963 filed 200,000 capital shares. Price — Net
asset value (max. $5), plus 8% sales charge. Business—
A mutual fund. Proceeds—For investment. Office—460

Jan.

'

•

Laboratory

Denver Club

Co.

Building. Denver. Distributor—Nemrava

(same address).




Offering—Expected in mid-May.

Procedures Inc.

St., Los Angeles. Underwriters — Charles Plohn & Co.,
York. Offering—Imminent.

&

Marshall

and B. W. Pizzini & Co., New

1963 filed 90,000 common. Price—$3.50.

Busi¬

lishing

ness—Company operates 25 retail shoe stores in Florida.
Proceeds—For
debt repayment, working " capital, and

staff

(5/21)

Press,

Inc.

Price—$3.75. Busi¬
Proceeds—For pub¬
sales catalogue, developing a national sales
working capital. Office—812 Greenwich St.,

a

and

N. Y. Underwriter—To be named.

St., Tampa, Florida.
Pittsburgh.

expansion. Office—1310 North 22nd

Inc.

May 29, 1962 filed 60,000 common.
ness—Graphic design and printing.

Leeds Shoes, Inc.
March 29,

Maradei Products,

April 1, 1963 filed 150,000 common. Price—By amend¬
ment
(max. $25). Business—Manufacture and sale of
cosmetics, pharmaceuticals and related products. Pro¬
ceeds—For an acquisition and working capital. Office—•
516 Ave. of the Americas, N. Y. Underwriter—Hornblower & Weeks, N. Y.

26, 1963, filed 225,000 common. Price—$1. Business
—Operation of six medical testing laboratories. Proceeds
—For general corporate purposes. Office—3701 Stocker

Offering—Indefinitely

postponed.

Underwriter—Strathmore Securities, Inc.,

Medic Corp.

Liberty Fabrics of New York, Inc.

a

new

28, 1963, filed 1,000,000 class B common. Price—•*
$1.25. Business—A holding company for three life insur¬
ance firms. Proceeds—For loan repayment, operating ex¬
Feb.

-

plant, loan repayment, and work¬

ing capital. Office—105 Madison Ave., New
derwriter—Blair & Co., Inc., New York.

York. Un¬

dress—714 Medical

writer—Lincoln Securities Corp. (same address). Offer¬

ing—Expected in May.
Medical

1963 filed 500,000 shares of beneficial interest.
Price—By amendment (max. $10). Business—A real es¬
tate investment trust. Proceeds—For investment. Office
—432 Commerce Exchange Bldg., Oklahoma City. Un¬
derwriter—None.
Life Assurance Co. of

Pennsylvania (5/27-31)

1963 filed 100,000 capital shares.
amendment (max. $33), Business—Writing of

March

28,

'

Price—By
life, acci¬

dent, and health insurance. Proceeds—For investment,
expansion. Office—2204 Walnut St., Philadelphia.

.and

Underwriters—Auchincloss,

Redpath, Phila¬

Parker

delphia, and Arthurs, Lestrange & Co.,

Pittsburgh.

Livestock Financial Corp.
Feb. 23,

Price—$10. Business

1962 filed 130,000 common.

whose subsidiaries in¬
sure the lives of all types of animals. Proceeds—To form
new subsidiaries. Office—26 Piatt St., N. Y. Underwriter
—Shearson, Hammill & Co., N. Y. Offering—Indefinite.

shares. Price — By
amendment (max. $10). Business—A diversified closedend investment companv. Proceeds—For investment. Of¬
fice—26 Broadway, N Y. Underwriter—Filor. Bullard A
Smyth, N. Y. Note—This company formerly was named

Offering—Indefinite.
Inc.

(5/30)

1963 ("Reg. A") 100,000 common. Price — $l!
Business—Operation of drive-in restaurants. Proceeds—
For leases, equipment
and working capital. Office—
1601 Mandeville Canyon Rd., Los Angeles. Underwriter
14,

—Keon &

Co., Los Angeles.

*

«r

Loyalty Financing Corp.
19, 1962 ("Reg. A") 24,000 shares of 6%% cumu¬
lative convertible preferred and 60,000 common to be
offered in units consisting of 20 preferred and 50 com¬
mon shares. Price—$250 Rer unit. Business—A business
Dec.

finance company.

Inc.

Business
plans

to

Proceeds — For investment in the
medical industry and capital growth situations. Office
—677 Lafayette St., Denver. Underwriter — Medical As¬
sociates, Inc., Denver.

become open-end.

Medical Video Corp.

filed 250,000 common. Price

Nov. 13, 1961
ness

—

Manufacture

For

of

medical

general

—

—Studio

City,, Calif. Underwriter

Corp., Los Angeles.

■

X-

—

electronic

corporate

Proceeds

—

$1. Busi¬

equipment.

Office
Financial Equity

.purposes. <

:'X:

;'XX:,X./ X:v-XX

Fund, Inc.
March 4, 1963 filed 500,000 capital shares. Price—Net
asset value plus 5%. Business—A new mutual fund to be
offered initially to members of the medical profession.
Proceeds—For investment. Office — 714 Boston Bldg.,
Denver. Underwriter—Centennial Management & Re¬
search Corp.,

Logos Options, Ltd.
1962 filed 250,000 capital

April 11,

Lord Jim's Service Systems,

Industries Fund,

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

Meridian

—An insurance holding company

Logos Financial, Ltd.

and investment in other insurance concerns. Ad¬
Arts Bldg., Oklahoma City. Under¬

penses,

Liberty Real Estate Trust
Feb. 25,

Jan,

Realty Trust

Investors

•

,

Feb.

Proceeds—For

'

,

ing stockholders. Office—111 W. 57th St., New York.
Underwriter—Kidder, Peabody & Co., Inc., New York.

.

(5/6)
March 28, 1963 filed 108,700 common to be offered for
subscription by stockholders on a pro rata basis. Price—
By amendment (max. $18.50). Business — Design and
manufacture of woven and knitted laces and nettings.

and apartment

homes

(5/7)

Life Insurance Co.

20, 1963 filed 50,000 guarantee capital shares.
Price—By amendment (max. $135). Business—Writing
of ordinary and group life insurance. Proceeds—For sell¬

cooling packages. Proceeds—For debt repay-'
capital. Office—Jennings Bldg., P. O
Box 638,
Moberly, Mo. Underwriter—John W. Flvnn
& Co., Santa Barbara, Calif. Note—This letter will b«

•

buildings on land which
the company has acquired in Southern California. Pro¬
ceeds—For debt repayment and other corporate pur¬
poses. Office—15855 Edna Pl.j/Irwindale, Calif. Under¬
writer—Bateman, Eichler & Co., Los Angeles. «
; , . ..
of

tion

Manhattan

March

withdrawn.

Life Insurance Co.

writer—Horace Mann Investors

•

Inc.

29, 1962 ("Reg. A") 100,000 common of whicfc
55,000 will be sold for company .and 3&.0ptQ.. fo^stwjc? ■
holders. Price — $3. Business — Manufacture * "of certain
aient and working

vXXXXXXvX-;
Feb. 1, 1963 filed 200,000 common, of which 80,000 are
to be offered by company and 120,000 by stockholders.
Price
$12.50. Business—Writing of life, accident and
health insurance. Proceeds—For general corporate pur¬
poses. Office—216 E. Monroe St., Springfield, 111. Under¬
Horace Mann

The company's assets have been sold to

another firm.

Chicago.

patented

capital. Ad¬

by company and

offered

Underwriter—To be named. Note—This registration will

plant expansion and working capita)
St., Paris, Texas.
Underwriter

N. Main

March

13, 1963 filed

of which 58,000 are

14,000 by stockholders.
Price—$3.50.
Business—Manufacture,
packaging
and
Ba*e of various proprietary drug products.
Proceeds—
For equipment, new products, debt repayment and work¬
ing capital.
Office—156 Tillary St., Brooklyn. N
v
be

to

150.000 common to be offered ir>
$300 debenture and 200 shares

—John A. Dawson & Co.,

Homestead Packers,

'

.

Drug Co., Inc.

March 29, 1962 filed 72,uuu common,

u% conv. subord. deben¬

—

March

Co., N. Y.
Manhattan

Sesame Corp.

(John)

mea

tures,

America (5/13-17) ;

16, 1963 filed

Jan.

filed 272,y41 common. Price—$3.50. Busi¬
of casualty
insurance,
adjustment of
claims, financing of insurance premiums, and the mak¬
ing of investments. Proceeds—For expansion, loan re¬
payment and other corporate purposes.
Office—9929
Manchester Rd., St. Louis. Underwriter—Troster, Singer

—

.viay

;

:

Kraft

•

&

ness—Writing

Co., 663 Fifth Ave., New York.

rities

Management

(5/7)

Corp.

Nov. 28, 1962

Office—407 Lincoln Rd., Miami Beach. Un¬
Seymour Blauner Co., and S'helton Secu¬

ing capital.

Insurance

Investment

courses

Philadelphia. Offer¬

Underwriter—Harrison & Co.,

ing—Temporarily postponed.

Manchester

Price—$6.50. Business — Publishing of home study
through franchised dealers. Proceeds—For work-

Hollingsworth Solderiess

Feb.

Pa.

None.

Key Training Service, Inc. (5/27-31)
26, 1963 filed 47,500 common, of which 40,000
are to be offered by company and 7,500 by a stockholder.

Terminal Co.
27, "1962 ("Reg. A") 75,000 common. Price — $4.
Business—Manufacture, sale and development of solderless terminals and other wire terminating products. Pro¬
ceeds—For debt repayment, equipment, advertising and
working capital. Address—P. O. Box 430, Phoenixville,

X

payment of loans, and general corporate purposes. Office
—130
Fulton Federal
Bldg., Atlanta.
Underwriter—

March

,

.XXxX-zX/'

nish

•

X,X-a

' •..

Co.,

missile

("Reg.

1963

29,

&

Aug. 29," 1962 filed 2,000 common (with attached war¬
rants). Price—$500. Business—Company plans to fur¬

Insurance Co.
A") 6,840 common. Price—By
amendment. Business — Writing of marine, automobile
and fire insurance. Proceeds—For Selling stockholders.
Office—457 Starks Bldg., Louisville. Underwriter—Stein
Bros. & Boyce, Louisville.
;

March

Underwriter—Drexel

Pa.

Management Investment Corp.

-.

(Thomas)

Jefferson

1963 filed $1,250,000 of 6V2% conv. subord. de¬
bentures due 1978, and 75,000 common to be offered in
units consisting of $50 of debentures and 3 shares. Price

Wayne,

Ave.,

Philadelphia. Offering—Indefinite.

1

Holiday Mobile

(maximum $14). Business—Production, sale, erec¬

ment

management investment-company.
Proceeds—For in- {• seeking capital appreciation. Proceeds—For investment.
yestment: Office—760 S. Hill St., Los Angeles. UnderOffice—467 Hamilton Ave., Palo Alto, Calif. Underwriter
wrter—None." \XXXXXXX'C: -X'X Xr.':/ XXX TXX/.v-X• X —Mutual Fund Distributors, Inc. (same address).
March 27,

and

Madison Ave.,

543

Jaap Penraat Associates,

(5/27-31)

Films, Inc.

Aug. 31, 1961 tiled 125,Ouu common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—For

Business—Operation of discount stores,
Jan. 30, 1962 filed 100,000 common. Price—$3. Business
proceeds—For inventory, expansion, debt repayment and
—Industrial designing, the design of teaching machines
working capital. Office—6400 MacCorkle Ave., S. W.,
and the production of teaching programs. Proceeds—
St.' Albans,' W. Va.
Underwriter—Willard Securities,
For expansion, new facilities and working capital. Office
Incv, New York. Note — This registration will be with¬
—315 Central Park W.. N Y. Underwriter—R. F. Dowd
drawn. '■ -•
<:
"XX XxXX, v XxX
' VX & Co., Inc., New York. Offering — Indefinitely post¬
Hill Street Co.;XX. X-Xx> X X ' X'v"
poned. ,'
X;,x
;■;,. y :x/; .:x ;:;
Oct. 16, 1961 filed 2,265,138 common to be offered for
XJanus Fund, Inc.
/.XX \X,X;xX-V'
subscription by stockholders of Union Bank of Califor¬
April 10, 1963 filed 500,000 capital shares^., Price—Net
nia on a share-for-share basis. { Price—$3.
Business—A
asset value plus 8y2%. Business—A new mutual fund
(max. $5).

ment

St., Freehold. N J. Underwriter—Friedman
Co., Inc., New York. Offering—Indefinite.

&

'.J

.

31

—5 W. Main

Inc.

1963 filed 550,000 common. Price—Net asset
value plus 8V2%. Business—A new mutual fund special¬
izing in Israeli and American securities. Proceeds—For
investment. Office — 100 West Tenth St., Wilmington,

April 22,

(max.

amendment

American

Israel

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

for each six common or

(1823)

Financial Chronicle

The Commercial and

Proceeds—For working capital. Office

•

(same address).

Met Food

Corp.
March 30, 1962 filed $1,000,000 of convertible subordi¬
nated debentures due Nov. 1, 1977. Price — By amend¬
ment. Business—Distribution of food and related prod¬
ucts

to

supermarkets
and
other
retail
stores in
Metropolitan area. Proceeds—For general

the New York

corporate purposes. Office—345 Underhill Blvd., Syosset,
VT
Y. Underwriter—Brand. Grumet Rr Slegel, Inc., N. Y,
Note*—This registration

will be withdrawn.

Midwest Technical Development Corp.
Feb.

26.

1962

filed

561.500

common

to

be

offered

for

subscription by stockholders on the basis of one share
for each two shares held. Price—By amendment (max.
— A
closed-end management investment
Proceeds — For general corporate purposes.
2615 First National Bank Bldg.. Minnean^^s.

$7). Business
company.

Office

—

Underwriter—None.
Continued

on

page

32

32

The

(1824)

Continued from page

Natural

31

Gas

Oil

&

Sept. 7, 1962 filed
•

National

Mil

(5/13-17)

Corp.

Business—Production
—For

28, 1963 refiled 94,0uu common. Price—$4. Business
of commercial dry cleaning and laundry

Jan.

—Distribution

corporate purposes.
Ave., Bronx, New York.
Young & Co., Inc., New York.

Underwriter—Herbert

New

Insurance Co.

Fidelity Life

Mobile Home Parks

Development Corp.

general

commercial

corporate

purposes.

ville, Spain.

Proceeds—For

estate.

Office—82

Underwriter—Overseas

lanta.

•

real

At¬
Se-

St.,
Service,

Baker

Investment

Mortgage Guaranty Insurance Corp.

ceeds—For

Campbell

Mines

Island

Ltd.

Industry Capital Corp.
Feb. 25, 1963, filed 30,500 common. Price—$10. Business
—A small business investment company. Proceeds—For
investment, and working capital. Office—1228 Wantagh
Ave., Wantagh, New York. Underwriter—None.
World Fund, Inc.
21/ 1963, filed 250,000 common., Price—Net asset
value plus 8V2%. Business—A, new mutual fund. Pro¬

Feb.

Angeles.

1963, 200,000 common. Price—By amendment
(max. $27). Business—Company is engaged in the in¬
from loss on residential
investment. Office—600 Marine

working capital and other cor¬
Office—Tekoil Bldg., Oklahoma City.
Morgan & Co., N. Y.

ceeds—For investment. Office—4680

(5/9)

March 11,

suring of lenders

Underwriter

Wilshire

Blvd., Los
Co.

New World Distributing

—

(same address).

Pro¬

loans.

Proceeds

New

r

r

'

oil.

and

New

28, 1963 filed 1,250,000 common. Price—$2.50. Busi¬
ness—Company plans to develop mobile home parks and '
and

gas

—For

Price—$5.

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

Jan.

residential

natural

of

(6/27)

common.

Oct. 13, 1961 filed 475,000 common, of which 400,000 are
to be offered by the company and 75,000 by a stock¬
holder. Price—50 cents. Business—Exploration, develop¬

(5/7)
March 27, 1963 filed 300,000 common. Price—By amend¬
ment (max. $8.50). Business—A legal reserve life insur¬
ance
company.
Proceeds—For expansion. Office—2401
South Brentwood Blvd., St. Louis.
Underwriter—A. C.
Allyn & Co., Chicago.
M issouri

a

Unuerwriier—r'eter

Tremont

East

Office—1101

class

expenses,

porate purposes.

general

Proceeds—For

equipment.

drilling

Producing Co.

180,uuu

Commercial and Financial Chronicle

•

Peterson, Howell & Heather, Inc. (5/20-24)
March 26, 1963 filed 33,383 class A common.
Price—By
amendment (max. $35).

Business—Furnishing of Auto¬

mobile fleet management

and

Canada.

—2521

com¬

municipalities and territories of the U. S.

Proceeds—Foi

Investment.

Ill Broadway

neapolis. Underwriter—None.

Sponsor—Ira

Haupt & Co.,
New York. Offering—Indefinite.

Northern States Life Insurance
March 26,

Music Royalty Corp.
July 27, 1962 filed 150,000 common. Price—$1. Businesi
—Company acts as representative of artists, musicians,
etc. and plans to engage in the music
publishing busi¬

Proceeds—For

ness.

debt

Life

Insurance

Co.

ment

National Equipment & Plastics Corp.
Sept. 28, 1961 filed 105,000 common. Price-;—$5. Business
—Operation of a cleaning and pressing plant and affili¬

This

registration will be

National

Fence

Manufacture

100,000
of

Note—

Inc.

Price—$8.75. Busi¬
galvanized chain link fence
common.

and

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

National Fidelity Life Insurance Co.
March 28, 1963 filed 72,455

Securities

(5/13-17)

tronics.

Proceeds—For debt repayment, and other corpo¬
Ofice—1002 Walnut St., Kansas City. Un¬
derwriter—E. F. Hutton & Co., Inc., New York.

Orr

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

Un- 4

Price—For

tal.

National

Security Life Insurance Co., Inc.
28, 1962 filed 590,075 common being offered for
subscription by common stockholders of record Jan. 31,

share-for-share basis. Rights will expire May
Price—$1.80. Business—Writing of participating and
non-participating ordinary life insurance. Proceeds—To
expand operations. Office—6225 University
Ave., Madi¬
son, Wis. Underwriter—None.

6.

1972.

Price—At par. Business—Production of
pictures. Proceeds—For production and distri¬

bution

expenses

was

withdrawn.

National

July
ment

lease

and

working capital.
Office—">270
Americas, New York. Note—This statement

of the

31,

1962

coin

'

4

....

Uni-Pac, Inc.

(max.

filed

$4).

85,000

common.

Price—By amend¬

Business—Company plans

operated

to

sell

or

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




Proceeds—For equipment and working capi¬
Underwriter—None.

"

corporate

Proceeds—For

of life,
debt

accident,

repayment,

Address—Executive

purposes.

Underwriter—A. C. Allyn & Co.,
.

Petroleum,

Inc.

drill

St., Shreveport, La.

Price—$5. Proceeds
oil wells. Office—418 Mar¬

common.

for and operate

Underwriter—None.

Princeton

28,

Research

1963

filed

Lands,

40,000

Inc.

Price—$25. Busi¬
property, chiefly un¬
Proceeds—For debt repayment, and ac¬
and

improved land.

sale

common.

of

real

quisition of additional properties.
Office—195
St., Princeton, N. J. Underwriter—None.

Nassau

Professional

Men's Association, Inc.
8, 1963 filed 40,000 common. Price—$5. Business
—Company specializes in financial consulting, and serv¬
icing patients' accounts of member hospitals, physicians
Jan.

and

dentists. Proceeds—For debt

repayment and work¬

ing capital. Address—100 W. Tenth St., Wilmington, Del.
„

Underwriter—None.
•

Provident Stock Fund, Inc.
(5/13-17)
April 11, 1963 filed 1,000,000 common. Price—Net asset
value plus 8V2%. Business—A new mutual fund. Pro¬
ceeds—For investment. Office---316 North Fifth
St.,

marck, N. D. Underwriter
(same address).

—

Bis¬

Provident Management Co.

Income Fund

April 3, 1963 filed 2,000,000 shares of beneficial interest.
Price—Net asset value plus 8V2%. Business—A
tual fund seeking maximum
income, and

new

long

mu¬

term

growth of principal. Proceeds—For investment. Office—
Fund

Inc.

/

60

—

Congress St.,

Boston. Underwriter

—

Putnam

Fund

Distributors, Inc. (same address).
Realty Equities Corp. of New York
April 3, 1963 filed 117,853 common to be offered for
subscription by common stockholders on the basis of
one

new

share

for

each

three

held.

Price—By amend¬

ment
are

(max. $7). Business — Company and subsidiaries
engaged in the purchase and sale, development, man¬

—By amendment

agement, and holding of real estate properties. Proceeds
purchase of additional properties and working
capital. Address—Time & Life Bldg., New York. Under¬
writer—None.

gases, and the treatment and
—For
loan

Nov.

(max. $34). Business—Company pro¬
duces equipment for the dehumidification of
compressed
gases, control of flow and temperature, detection of

subord. deben¬

motion

Ave.

Business

share for each nine class A and class B shares held.
Price

•

other

Putnam

Price—$1.

Pall Corp.
(5/13-17)
April 4, 1963 filed 61,584 class A shares to be offered
for subscription by stockholders on the basis
of one new

a

tures due

inventory, equip¬

Plankington Bldg., Milwaukee. Underwriter—
Fund Management Inc. (same
address). ■■■4/4:4'/4/4/

Nov.

Business—Writing

and

ness—Purchase

Busi¬

—

dress

$10).

insurance.

Underwriter—To be named.

(5/27-31)

Price—$5.25.

For additional

(max.
health

mortgages, apd
working capital. Office—18 Lancaster Rd., Union, N. J.

purposes.

Address—Creede. Colo.

PMA Insurance

Kansas.

conv.

—

ment
and

Prescott-Lancaster Corp.

believed

April 8, 1963 filed 200,000 common. Price
Net asset
value plus 4%. Business—A new mutual fund
specializ¬
ing in insurance stocks. Proceeds—For investment. Ad¬

(same address).
only in the State of

National Telepix, Inc.
July 30, 1962 filed $150,000 of 6^%

common.

...

Poulsen Insurance Co. of America (5/15)
March 29, 1963 filed 100,000 common.
Price—By amend¬

March

corporate

Enterprises, Inc.

200,000

.

Potomac Real Estate Investment Trust

Mining Co., Inc.

—Mining.

cer¬

stock,

writer—National Mortgage Agency,
Inc.,
Note—This offering will be made

on

general

terminal

March 30, 1962 filed 150,000 common. Price—$5. Business
—Real estate. Proceeds—For purchase of

St., Chicago.

Feb. 28, 1962 filed 900,000 common.

$1.15. Business—A mortgage
loan company.
Proceeds—For general corporate pur¬
poses. Office—113 S. Hydraulic, Wichita, Kan. Under¬

1963

Herbert)

1962 filed

Outlet

Mortgage Corp., Inc.
28, 1962 refiled $8,000,000 face amount certificates
shares.

(J.

trqusers. Proceeds

National

common

are

ment, research, and working capital. Address—P. O.
Box 27, Opelika, Ala. Underwriter—First Alabama Se-r
curities, Inc., Montgomery.

derwriter—Security Brokerage Co., Billings, Mont.

(series 20) and 300,000

which

boy's dress

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

concern.

tificates, $762; for

thereof

ness—The company and its subsidiaries manufacture and
distribute cartridge type tape player recorders and
pro¬
grams therefor; sell at retail nationally known audio
visual equipment; and manufacture men's and

11, 1962 filed

Office—13 S. Broadway, Red Lodge, Mont.

subdivisions

Proceeds—For

May 1,

National Memorial Estates

Dec.

of units representing
Price—By amendment.

Office—102 Grand St., Westbury, New York. Underwrit¬
ers—Stone, Ackerman & Co., Inc., and Heritage Equity
Corp., New York.

rate purposes.

poses.

political

Milwaukee.

river

capital. Office—111
Underwriter — The

Corp.
Jan. 28, 1963, filed 200,000 capital shares. Price—$4.75.
Business—Company plans to manufacture a new type of
brake unit for heavy duty automotive vehicles. Proceeds
—For equipment, and working
capital. Office — 2604
Leith St., Flint, Mich. Underwriter—Farrell Securities
Co., New York.
4

(5/20-24)
March 28, 1963 filed 140,000 common. Price—$3. Busi¬
ness—Research and development of materials used in
the "Laser" field, and in related areas of optical elec¬

ance.

to

$15,000,000

working

advertising,
data processing,

Power Cam

Fund, Series 4

in the Fund.

are

including

July 6, 1962 filed 1,000,000 shares of beneficial interest
Price—By amendment (max. $5). Business—A real estate

ket

Optech, Inc.

Co,

of which 36,227
shares are to be offered by company and
36,228 shares
by a .stockholder.
Price—By amendment (max. $35).
Business—Writing of life, accident, and health insur¬

and

filed

Nuveen & Co., 135 So. La Salle

common,

ment

1961

Ave.,

By amendment

Marshall Co. (same address).
Offering—Expected in late

Sept. 28, 1962 filed 100,000

to be exempted from Federal Income taxes. Proceeds—
For investment.
Office—Chicago, 111.
Sponsor—John

concrete

Insurance

17,

Proceeds—For

Wisconsin

—To

interest-bearing obli¬
gations of states, counties, and municipalities of the U. S.,

products.

Oct.

Tax-Exempt Bond
(5/6-10)

fractional interests

land,
ensburg, Md. Underwriter—Netherlands
Inc., New York. Offering— Indefinite.

operations.

Powell

equipment,

Nuveen

Oct.

withdrawn.

Manufacturing Co.,

1962 filed

ness

welded

Proceeds—For

activities

Chicago.

Business—The Fund will invest in

Nov. 29,
—

•

repayment, store ex¬
Address — Portage, Pa.

Y.

services.

diverse

—

Company, and subsidiaries

—

Plaza, Park Ridge, 111.

Corp.

withdrawn.

debt

Corp., N.

Engineering

debt repay¬
ment, expansion and working capital. Address—P. O.
Box 10901, Pittsburgh. Underwriter—Johnston. Lemon A
Co., Washington, D. C.
Note—This registration will be

To be named

pansion and working capital.
Underwriter—Cortlandt Investing

&

Farwell

contracts using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬

Proceeds—For general corporate purposes. Ad¬
McGee St., Kansas City, Mo. Underwriter—

Proceeds—For

Science

new

(max.
insurance.

on

dress—2632

stores.

one

Price—By amendment

Business—Writing

Nuclear

7 filed 125,000 common. Price —
By amendment
(max. $15). Business—Writing of health and accident in¬

ated

held.

March 29, 1962 filed 100,000 common. Price—By amend¬
ment (max. $15). Business—Research and development

Dec.

surance.

IV2

to be offered for

the basis of

on

of general life
expansion.
Office—1840 North
Milwaukee. Underwriter—None.

Ave.,

Ave., N. Y. Underwriter—Associated
Securities Co., 545 Fifth Ave., N. Y.
Central

each

common

S.

investment trust. Proceeds—For investment.
Office—880
Bonifarit St., Silver Spring, Md. Underwriter—None;

Corp.

Proceeds—For

Fifth

National

for

$2.50).

public relations,
working capital,

repayment,
acquisition of musical properties, and
Office—545

1963 filed 280,000
subscription by stockholders
share

in

held. Price

seven

building construction, TV and radio,
warehousing, equipment leasing,
and

Ontario,

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

U.

Office

Inc.

(max. $17). Business

Canada. Proceeds—For aircraft

1978, to be offered to

stockholders of record April 15, 1963, without allo¬
cation or limitation. Unsubscribed debentures will be

the

—

share for each

new

fund will invest in tax-exempt bonds of states, counties,

subordinated

in

■[4': Polaris Corp.
• -4
~
•*»
April 1, 1963 filed 90,122 common to be offered* for sub¬
scription by common stockholders on the basis of one

May.,

5%%

of

firms

equipment, and working capital. Office — 56 Bennett
Bldg., Wilkes-Barre, Pa. Underwriter—G. K. Shields &
Co., New York.

offered for public sale. Price—At par. Business—Opera¬
tion of an airline in ten mid-western states and

due

to

selling stockholders.

Charles St., Baltimore. Underwriter
Alex.
Sons, Baltimore. 4"

Pictronics,

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

convertible debentures

service

Proceeds—For

Feb. 27, 1963 ("Reg. A") 75,000 common. Price — $4.
Business—Production of TV documentary films, and the
processing of colored kodachrome film. Proceeds—For

East

filed $1,500,000

1963

29,

N.

Brown &

mon

March

Underwriters—Hornblower &

pur¬

Office —2301

Pennsylvania Ave., Philadelphia.
Underwriter—Arnold Malkan & Co., Inc., N. Y. Note—
This registration will be withdrawn.
;

Plaza, Mil¬
Weeks, Chicago,
and Robert W. Baird & Co., Inc., Milwaukee.

waukee.

Thursday, May 2, 1963

.

.

acquisition, research and other corporate

an

poses.

engaged

North Central Airlines, Inc.

.

pumping of water. Proceeds
repayment, equipment, advances to sub¬
sidiaries, and working capital. Office—30 Sea Cliff Ave.,
Glen Cove, L. I., New York.
Underwriter—L. F. Rothschild &

Co., New York.

Pan American Beryllium
Corp.
Feb. 28, 1962 filed 100,000 common.

Recreation

23, 1962

Industries, Inc.
("Reg. A")

75,000

Business—Sale of travel and
For

common.

Price

entertainment.

—

$2.

Proceeds—

capital

investment, and working capital. Office—
411 W. 7th St., Los Angeles. Underwriter
Costello,
Russotto & Co., Beverly
Hills, Calif. Offering—Imminent.
—

Price—$5.

Red

Business

—Company plans to mine for beryl ore in Argentina.
Proceeds
For debt repayment,
equipment, and other
corporate purposes. Office—39
Broadway, N. Y. Under¬
—

writer—To be named.

1961 filed 160,000 common. Price—$5.
—Manufacture of drugs and pharmaceuticals.

Kap, Inc.

(5/27-31)

April
are

23, 1963 filed 240,000 common, of which 100,000
to be offered by
company and 140,000 by stockhold¬

ers. Price—By amendment
(max. $20). Business—Manu¬
facture and distribution of industrial uniforms to indus¬

Business

trial rental laundries. Proceeds—For debt
repayment and
—
Sudekum Bldg., Nashville,
Tenn. Underwriter
Merrill

Proceeds

Smith

Parkway Laboratories, Inc.
Dec. 6,

—For

working capital. Address
—

Inc., New York.

Lynch, Pierce, Fenner &

Number 6260

Volume 197

.

.

..

Office—1933

Insurance Co. of Illinois.

Reliance Life

filed 150,000 common. Price—By amend¬
ment (max. $4).
Business—Writing of life insurance.
Proceeds—For sales promotion, and investment. Office
—15 South Northwest Highway, Park Ridge, 111.
Un¬

Milton

derwriter—None.

Feb. 15,

March 29, 1963

Resort Corp.

•

Nov. 27,

Price

rant.

$32

—

•

per

unit.

Business

—

war¬

will

Southern

operate a luxury hotel and resort facilities,
and sell 80 acres of land for home sites. Proceeds—For
writer—R.

'

1

'

;

;

Retirement Foundation, Inc.

the Founda¬
Company
will operate retirement centers for the use of rent-free
private homes and apartments by members upon their
Retirement. Proceeds—For working capital, construction

April 8, 1963 filed 100,000 memberships in
tion. Price—$10 per membership. Business

—

Office—235 Lockerman
St., Dover, Del. Underwriter—John D. Ferguson, Dover,
other. corporate purposes.

and

Del..
Richard Gray & Co., Inc.

,
■

1062k-("Reg. A"). 60,000 common. Price—$5.
Business
A securities: brokerrdealer.
Proceeds — For
working capital and other corporate purposes. Office-r
237 W. 51st St., N. Y. Underwriter—Richard Gray Co.,
June

21,

Richmond Corp.

SEC

The

has

Rona Lee

•

the
statement.

challenged

of this registration

Price—$7. Business

and

•

r

..

Russell

Mills,

Price—By amend¬

(max. $12).
Business—Manufacture of athletic
clothing, knitted underwear, children's sleepwear and
cotton cloth. Proceeds—For bond retirement and plant
&

•—Hornblower

formerly

was

N. Y.

Weeks,

Note

—

Louis

St.

March

porate purposes. Office—211 Anderson Bldg., Lincoln,
Neb. Underwriter—Capital Investment Co., Lincoln, Neb.

Shipbuilding-Federal Barge, Inc.

28,

Office—611 East Marceau Street, St. Louis.
Gardner, St. Louis.

Los

"

Address—Phoenix

Bldg.,

1

For a mill,
corporate purToronto, Ontario. Un¬
-—

Financial

to

ate,

on

1962

be

Corp*

Life

held.

Remaining 94,822

and

any

unsub¬
public.

Ave., Phoe¬

19, 1962 filed 215,000 shares of beneficial interest
Price—$15..Business— A real estate investment trust.
Proceeds—For investment and working capital.: Office
—1956 Union Commerce Bldg., Cleveland, Ohio. Under¬

Cleveland.

•

•

29, 1962 filed 126,000 common. Price—$4.50. Business—Manufacture, sale and development of glow lamps
for use as indicators and circuit components. Proceeds—
debt

repayment,

equipment




and

subsidiary. Office—801

Underwriter—Amo-.

working capital.

;

r

July 27, 1962 filed 313,108 common. Price—$3.50., Busi¬
ness—Operation of a plant producing plastic film and;
packaging products.
Proceeds—For working capital
Address—Elsa, Texas.
fering—Indefinite.

Signalite Inc.

For

new

„

Jan.
,

in

Texas Plastics, Inc.

Offering ^In¬
.

and

products. Proceeds — For debt repayment and working
capital. Office—3814 Tennessee Ave., Chatsworth, Ga.
Underwriter—Irving J. Rice & Co., Inc., St. Paul. Of-;
fering—Indefinite.
V
-

Oct.

Co.,

v

.

Price—$3.50. Busi¬
ness—Design, engineering and manufacture of special¬
ized products primarily in the field of contamination
control. Company also acts as sales agents and distrib¬
utors of allied equipment in the fields of contamination
control and ultrasonics. Proceeds—For debt repayment,
equipment, advertising and other corporate purposes.
Office—1695 Elizabeth Ave., Rahway, N. J. Underwriter
—None.
•

j.

Co. (5/6)

Underwriters National Assurance

of which 31,176
and 18,824 by a
selling stockholder. Price—$7.50. Business — Writing of
health insurance. Proceeds—To increase capital and sur¬
plus and for expansion. Office — 1939 N. Meridian St.,
Indianapolis. Underwriter — K. J. Brown & Co., Inc.;
21,

shares

filed

1963,

are

to

50,000

common,

be offered by company

(5/27-31)

Inc.

29, 1962 ("Reg. A") 100,000 common.
Price—$3.
Business—Operation of retail stores selling and trading

Nov.

films and other photographic equipment. Com¬
also sells radios, tape recorders, dictating and

cameras,

pany

photocopying machines, and provides a film developing
and printing service.
Proceeds—For new stores and
camera concessions.
Office—25 W. 43rd St., N. Y. Un¬
derwriter—Ingram, Lambert & Stephen, Inc., 50 Broad
St., New York.
*
.
United

Ltd.

Plastic Corp.

&

Saran

convertible debenT
8% preferred ordi¬
nary "B" shares to be offered in units consisting of two
$100 debentures and 10 shares. Price — $305 per unit.
Business
Manufacture of light household and office
25, 1963, filed $330,000 of 7%
tures due 1975 and 16,500 shares of

Feb.

—

furniture. Proceeds

—

York.

corporate purposes.
Underwriter—Brager & Co.,

For general

Address—Rehovoth, Israel.

Offering—Indefinite.

•^United Servomation Corp.

amend¬
and to¬
automatic vending machines.

April 19, 1963 filed 215,000 common. Price—By
ment (max. $22). Business—Sale of various food

through

products

bacco

New York.

Office—410 Park
Underwriter—Hemphill, Noyes & Co.,

selling stockholders.

Ave., New York.

Offering—Expected in mid-May.

Fund, Inc.
shares of stock.

United Variable Annuities

11, 1961 filed 2,500,000

Price—$">0

share. Business—A new mutual fund. Proceeds—For
Office—20 W. 9th Street, Kansas City, Mo.
Underwriter—Waddell & Reed, Inc., Kansas City, Mo.
Universal

Textile

Distributors,

Inc.

Price
Business—Operation of department stores. Pro¬

March 22,

—$5.

Underwriter—To be named. Of-;

1963 ("Reg. A") 60,000 class A common.

Finance Corp.

r

29, 1963 filed $1,026,000 of .7% junior subordi¬
nated convertible capital notes (series A) due 1978; also
March

12,329 common to be sold for stockholders. Price
For
debentures, at par; for stock, by amendment. BusinessCompany and 30 active subsidiaries are engaged in the
consumer finance business.
Proceeds—For debt repay¬

sas

company.

subscription by stockholders of Ten-Tex Corp., parent,
of record Feb. 1, 1963 on the basis of one unit for each
150 common shares held.
Price—$100.
Business—Sale
and lease of machinery for production of tufted textile

Shaker Properties

writer— McDonald^

1''

•

29, 1962 filed 67,200 common.

Nov.

surance

one

nix.

definite.

■•"*.

;

Ultrasonic Laboratories,<<lnc.:

Dallas.

Dec.

$6; to stockholders, $5. Business—Company plans to en¬
gage in the consumer
finance, mortgage, general fi¬
nance and
related businesses. Proceeds — For general
corporate purposes. Office—830 N. Central
Underwriter—None.

Price—$100. Business
to organize a life in¬
Proceeds—For investment in U. S.

Ten-Tex, Inc.
31, 1962 ("Reg. A") 3,000 units each consisting of
6Y2% 10-year debenture, 25 common shares and pur¬
chase warrants for 100 common shares to be offered for

the basis of 4 company shares for each class A or
two-thirds share for each class C share of

scribed shares will be offered publicly. Price—To

•

writer—None.

Jan. 21, 1963 filed 48,500 common.
—A holding company which plans

Lafayette Life Bldg., Lafayette, Ind.
sand Inc., (same address).

B share and
Selective

1963 filed

Government Bonds

500.000 common,
for subscription by

filed

offered

1,

Tecumseh Investment Co., Inc.

of which 405,000
holders of the A.
B and C stock of Selective Life Insurance Co., an affili¬
28,

are

E.;4th St., Casa Grande, Ariz. Under¬

ital. Office—201

to be offered by company,

are

derwriter—None.

Feb.

capital shares. Price—$1.50.
Business—Exploration,^development and production of
the Lake Shore copper deposit near Casa Grande, Ariz.
Proceeds—-For equipment, exploration and working cap?

Investment.

165,000 common, of which 120,000
and 45,000 by stockhold¬
ers.
Price—By amendment (max. $9). Business—Com¬
pany develops and sells teaching machines exclusively
for Grolier Inc. Proceeds—For debt repayment and other
corporate purposes. Office—221 San Pedro, N. E., Albuquerque., Underwriter—To be named.

April

Un¬

April 16, 1963 filed 1,000,000 common. Price—By amend¬
ment
(max. 30c). Business — Company is engaged in

Selective

Resources, Inc.

Transarizona

per

Sapawe Gold Mines Ltd.

poses.

fering—Expected in late June.

Aoril

Angeles. Underwriter—None.

Teaching Machines, Inc.

derwriter—Reinholdt &

exploratory mining for, gold. Proceeds
equipment, loan repayment, and other

debentures

Business—Financing of tourist
— For general corporate
purposes. Address — Jerusalem, Israel. Undrewriter—
American-Israel Basic Economy Corp., New York. Of-*
enterprises in Israel. Proceeds

Proceeds—Foro

Investment Trust
Feb. 1, 1963 filed 30,000 shares of beneficial interest.
Price—$100. Business — A real estate investment trust.
Proceeds—For investment. Office—4900 Wilshire Blvd.,
Sutro Mortgage

1963 filed 150,000 common, of which 50,000
100,000 by H. T. Pott,
Chairman. Price—By amendment (max. $10). Business
—Operation of a shipyard in St, Louis., Subsidiaries op¬
erate water carrier systems, a railroad, a vessel repair
and barge construction yard, also dry docks and other
related activities. Proceeds—For general corporate pur¬
poses.

'.'./V ."V"

V

March 27, 1963

to be offered by company and

are

Railroad, Inc.

Superior Benefit Life Insurance Co.
filed 600,000 common. Price—$2.50. Busi¬
ness—Sale of life insurance. Proceeds—For general cor¬

called Russell Manufacturing Co. Offering

Ltd.

1983. Price—At par.

due

New

This company

(6/11)

SV.---:

Un¬

Address—Stone Mountain, Ga. Underwriter—

None.

—Indefinite.
•

addi¬
lines.

to the public. Price—To stockholders, $5.50; to public.
$6.50. Business—Operation of a scenic railroad. Proceeds
—For construction, debt repayment and other corporate
purposes.

Underwriter

Address—Alexander City, Ala.

expansion.

;

Development Corp.,

29, 1963 filed $5,000,000 of 7% senior

United Camera Exchange,

(5/10)

filed 105,000 common to be offered for sub¬
scription by* stockholders on the basis of one share for
each three shares held. Unsubscribed shares will be sold

ment

N. Y. Offering

Muncie, Ind.

Underwriter—None.

Industries, Inc.

Stone Mountain Scenic

Inc.

Sept. 28, 1962 filed 312,500 common.

Sternco

Industry

Tourist
March

Feb.

Jan. 22, 1963

.

_

.

animals, and acquarium supplies. Proceeds—For
tional equipment, inventories, and new product
Office—53 Cottage Place, Allendale, New Jersey.
derwriter—Oppenheimer & Co., New York.

Note—This registration will be

withdrawn.

S. C.

Co., Inc., Greenville,

28, 1963 filed $400,000 of 6% conv. subord. deben¬
tures due 1977, and 25,000 class A common. Price—For
debentures, $1,000; for stock, by amendment (max. $12);
Business—Distribution of tropical fish, goldfish, turtles,

By

Co., N. Y.

Stonehill &

Furman

G.

March

amendment.
Business — Develop®
and prints color,
and black and white photographic
film. Proceeds — For equipment and working capital
Office—245 7th Ave., N
Y. Underwriter — Federman
—

engaged in the sale of automobile and life in¬
Proceeds—For debt repayment and other cor¬

Pinconning, Mich.

Royaltone Photo Corp.
29, 1961 filed 300,000 common, of which 100,000:
are to be offered by the company and 200,000 by stock¬
Price

also

Sterling Copper Corp.
Aug. 2, 1962 filed 850,000 common. Price—$1. Business
—Company plans to operate a non-ferrous rod and tube
mill. Proceeds—For plant and equipment, working capi¬
tal and other corporate purposes. Office—300 Horn Rd„

Nov.

holders.

V

South Carolina.

adequacy

'■■'V' '

York.

-•

Underwriter—Alester

(5/27-31)

Corp.

\

porate purposes. Office—518 S. Irby St., Florence,

1962

26,

-V

■

Philips, Appel & Walden, 115 Broadway,
—Temporarily postponed.

May 28, 1962 filed 500,000

surance.

filed $250,000 of 6%% debentures and
50,000 common. Price—For debentures, by amendment;
for stock, $4. Business—Design, manufacture, and disr
tribution of girls' blouses, sportswear, and coordinates.
Proceeds—For debt repayment. Office—112 W. 34th St.,
New York. Underwriter—Reuben Rose & Co., Inc., New
Sept.

Co.) Chicago.

is

Proceeds—For debt

accuracy

(5/22)

Co.

Gas

Stephenson Finance Co., Inc.

Office—220
St., N. W., Washington, D. C. Underwriter—Hirschel
Co., Silver Spring, Md. Offering—Indefinite. Note—

K

:/■" .'-i

April 12, 1963 filed $1,000,000 of 6% sinking fund subord.
debentures due May 1, 1978. Price—At par and accrued
interest. Business—A consumer finance company which

repayment and gene-al corporate purposes.
&

Union

Southern

&

V

.

(5/22)

Edison Co.

retail stores

ice

Fidelity Union Tower, Dallas. Underwriter-^-A. C. Allyn

Offering—Indefinite.

Dec. 21, 1961 filed 142,858 common.
—A real estate investment company.

Business—Operation of a chain of self-serv¬
selling clothing, housewares, etc. Pro¬
ceeds—For expansion, equipment and working capital.
Office—2220 Florida Ave., Jasper, Ala.
Underwriter—
Price—$5.

April 22, 1963 filed $5,200,000 of sinking fund debentures
due 1983, also 50,000 cumulative preferred shares. Price
—By amendment. Business —;A public utility rendering
natural gas service in Texas,-New Mexico, Arizona and
Colorado.
Proceeds.— For debt repayment. • Address—

—

New York.

California

PDST) at above address.
•

1, 1962 filed 200,000 common, of which 100,000 are
be offered by company and 100,000 by stockholders.

to

1963 filed $60,000,000 of first and refunding
mortgage bonds, series Q, due May 15, 1988. Proceeds—
To refund $32,400,000 of outstanding 3% bonds due 1965,
and for debt repayment. Office—601 West Fifth St., Los
Angeles. Underwriters — (Competitive). Probable bid¬
ders: Halsey, Stuart & Co. Inc.; First Boston Corp.-Dean
Witter & Co. (jointly); Blyth & Co.-Lehman BrothersMerrill Lynch, Pierce, Fenner & Smith Inc.-Salomon
Brothers & Hutzler (jointly). Bids—May 22 (8:30 a.m.

Office—3615 Olive St., St. Louis. Under¬
L. Warren Co., St. Louis. Offering—Indefi¬

Inc.

Top Dollar Stores,
May

April 22,

construction.
nite.

Trust

Charlotte, N. C. Underwriter—Fleetwood Securities Corp.
of America, N. Y.

to be

Company

Office—819 Broadway, Kansas

Midland Securities

Mortgage Investors

repayment and expansion.
City, Mo. Underwriter—
Co.; Inc., Kansas City, Mo.
debt

inventory,

ceed^—For

1963 filed 1,000,000 shares of beneficial interest.
Price—$10. Business—A real estate investment trust.
Proceeds—For investment. Office—500 E. Morehead St.,

and

erect

Southeastern

(5/15)

125,000 class A common and three-

year warrants to purchase 1,250 class A shares
offered in units consisting of four shares and one

Aye., Neptune, N. J. Underwriter—
Co., New York. Note—This regis¬

Heck

Blauner &

tration will be withdrawn.

of Missouri

1962 tiled

D.

33

(1825)

The Commercial and Financial Chronicle

and

ment,

expansion. Address

—

700 Gibraltar Bldg'.,

Underwriters—Midland Securities Co., Inc.,
City, and Texas National Corp., San Antonio.

Kan¬

• Upper Peninsular Power Co.
(5/8)
April 11, 1963 filed 34,000 common. Price—By amend¬
ment (max. $30). Business—Furnishes electric power to
consumers in the upper peninsula of Michigan. Proceeds

—For

redemption of 514% bonds

ferred;
Sheldon

Peabody & Co., Inc.,
and

and two series of Pre~

loan repayment, and construction. Office—616
Ave., Houghton, Mich. Underwriters—Kidder,

Stone & Webster

Paine, Webber, Jackson

Securities Corp.,

& Curtis, New York.

Urethane of Texas, Inc.
Feb. 14,1962 filed
be

250,000 class A and

offered in units of one

250,000 common to

Price—

share of each class.

unit.
Business—Manufacture of urethane
foams.
Proceeds—For
equipment, working capital,
leasehold expenses and other corporate purposes. Office
—2300 Republic National Bank Bldg., Dallas.
Under-writer — First Nebraska Securities Corp., Lincoln, Neb.
Offering—Temporarily postponed.

$5.05

per

Valley Investors,

Inc.

.

•

.

Price—$1. Business
investment. Ad¬
Underwriter—To be named.

Jan. 23, 1963, filed 328.858 common.
—A new mutual fund. Proceeds—For

dress—Sidney, Montana,

Continued

on page

34

34

(1826)

Continued

from

* Vend-Mart

The

Issues Filed With SEC

Jan. 22, 1963 filed 60,000 common. Price—$4. Business
—Operation of coin-operated automatic ice-cube vending
and
clothes
washing and drying machines.
Proceeds — For debt repayment, equipment, expansion
and working capital. Office—565 Fifth Ave., New York.

Effective Registrations j
The

This Week

Virginia Eiectric & Power Co.

★ American Biltrite Rubber Co., Inc.
(5/27-31)
May 1, 1963 filed $5,000,000 of convertible subordinated
debentures due May
1, 1983.
Price — By amendment.
Business
Company produces a variety of rubber and
vinyl products. Proceeds—For prepayment of loans. Of¬

Address—7th

& Franklin Sts., Richmond. Underwriters
(Competitive). Probable bidder: Halsey, Stuart & Co.
Inc.; Stone & Webster Securities Corp.; White, Weld &
Co.; Eastman Dillon, Union Securities & Co.; Salomon
—

Brothers

fice—22 Willow St.,
Chelsea, Mass.
man, Sachs & Co., New York.^

Hutzler.

&

Chase

Manhattan

Business—The

ment.

of

carrying

liner-type

Proceeds—For the purchase of vessels, and
ital.
Office—71 Saint Joseph St.,
Mobile,

writer—Shields

&

Co.; Inctf.'N. Y.

withdrawn.'^

tion will be

jr'-f

cargoes

working cap¬
Ala. Under-

Note—This registra¬
•"

J '

Feb. 11, 1963 ("Reg. A") 200,000
capital shares. Price—
$1.50. Business — Acquisition and development of land.
Proceeds—For general corporate purposes. Office—2727
N. Central Ave., Phoenix. Underwriter — William W.
Bones Securities Co., Phoenix.

Western Empire Real Estate Investments

Sept. 26, 1962 filed 600,000 shares of beneficial interest

Price—$4. Business—Company plans to quality
fice—1755 Gilpin
/

Of¬

17, 1963 ("Reg. A") 245,000 common.
Price
$1
Business—Company plans to erect a mill to produce cer¬
tain types of iron by the new "Taylor Process." Proceeds
—

—For. plant construction and: general
Address—Suite 412-413 Hynds

poses.

SEC

has

B. Hoke

issued

an

corporate

pur¬

Bldg., Cheyenne.
Agency, Cheyenne, Wyo.
order

temporarily

;

Western Union International, Inc.

March

29,

1963

filed

due

1983,

$4,000,000 of 6Y4% subordinated
and 400,000 common. Price—For
debentures, at par; for stock $3.50. Business—Company
will take over and operate Western
Union Telegraph's
international telegraph operations. Proceeds—For
debentures

sell¬

ing stockholder, Western Union
Telegraph Co.,/parent.
Office—60 Hudson St., New York.
Underwriters—Ameri¬
Securities Corp., and
.Glore,
York.
Offering—Expected in late
can

Wrdman

(L.

F.)t

Oct. 27, 1961 filed
to be offered
by

holders.

ForganJuly.

&

Co.,

New

;

subsidiaries

162,000 common, of which 102,000 are
the company and 60,000
by stock¬

Proceeds—For

debt

—

a

By

amend¬

chain of shoe

repayment,

expansion' anc
St.. New Orleans'

working capital. Office — 808. Dakin
Underwriter
Howard* Weil. Labouisse. Friedrichs &
Co., New Orleans. Note—This registration will be with¬
'

'

bentures due 1978
mon

and

shares to be offered in units of

—

New

■

if Central States Life Insurance Co.
April 17, 1963 ("Reg. A") 43,513
subscription by stockholders

common

to

be

of' record March 31,
1963 on the basis of 0.8082 share
for each share held.
Price—91 cents per share.
Business—Writing of life, ac¬
cident and health insurance. Proceeds
For

capital. Office—402

'>■;//■.

April 12, 1963
common

10 shares.

Price—$220

$100 debenture

unit. Business—Company
has been licensed to conduct
harness racing with parimutual betting. Proceeds
For debt repayment and
working capital. Office—3 Penn Center
Plaza, Philadel¬
phia. Underwriter—Stroud &
per

—

Co.,

Offering—Indefinite.
Wlnslow
Dec. 28,

—Design

common.

and ^manufacture

measuring

ceeds—For

Philadelphia.

Electronics, Inc.

1961 filed 125,000

electronic

Inc.,

debt

of

devices

repayment

pi

and

and

Price—$4. Businesc

elision
test

other

electrical

and

equipment.

Pro¬

corporate

pur¬

Officii—1005 First Ave.,
Asbury Park, N. J. Under
writer—To be named.

poses.

.

Lovett, Houston, Tex.
•
/V."■

■

Jan. 26, 1962 filed
$4,500,000 of 6.5% convertible sub¬
ordinated debentures due 1977
(with attached warrants)
to be offered for
subscription by stockholders of class
A stock on the
basis of $500 debentures
for each 100
class A shares held.
Price—$500 per unit. Business—
Real estate.
Proceeds—For debt
repayment and

acquisitions. Office—10

T~S

E. Securities, Inc.,

realty

East 40th St., N. Y. Underwritel
10 East 40th Street, New York

Note—This registration will
be withdrawn.

•

Woman's Life Insurance
Co. of
America, Inc.
March 28, T963 filed
150,000 common.
Price—$7.50.
Business—Company writes life insurance for
women.

Proceeds

Wisconsin
None.

For

investment, and expansion. Office—7940
Ave., Bethesda, Maryland.
Underwriter—

to

be

offered

84 class A and

in

units

of

one

writer—None.

''

:*•

■

I.-..;'

....

'

-V, V

$ t




one

share

new

for

«,

Co.i

'7.:7?''!7'.7!v:/' v<:7;7'07l;7:7'•'■

Kentucky Central Life Insurance Co.
500,000 class A common offered at $16,625
Stifel, Nicolaus & Co., Inc., St. Louis.

2,352 class B

class

•

of

•

'''■.

First Boston Corp., New York.

/•••

A

and

28

.\

Putnam

Management Co.,

100,000 non-voting
Putnam Fund

Roberts

130,000
./

Inc.

-

"

share by

per

:

shares offered at $8 each by

common

Distributors, Inc., Boston.

<

.

Co.

offered at $10.50 per share
by Reynolds.
and Lester, Ryons &

common

&

if Clark Cable Corp.

Co., Inc.,
Angeles.

April 25, 1963 filed 121,915 common.
Price—By amend¬
ment (max. $6). Business
Manufacture and develop¬
ment of electronic,
electrical, and mechanical systems
and
components; also wholesale distribution of electri¬

Tri-Continental Corp.'
182,300 shares of $2.50 dividend, preferred stock offered
at $55 a share plus accrued
dividends, to yield 4.54%^
by Eastman Dillon, Union Securities & Co., New York.

—

cal

components.
Proceeds
For selling stockholders;
Office—3184 W. 32nd
St., Cleveland. Underwriter—Ful¬
—

ton, Reid & Co., Inc., Cleveland.
if Dow Jones & Co., Inc.
May

(5/28)

and "The National Observer."

operates the "Dow Jones News
Service,"
"Canadian Dow Jones News Service."

Company

1988

Broad

St.,

or

a

Inc.

$20). Business—Company
national system of
Holiday Inn mo¬

writer—Equitable Securities Corp., Nashville.

Our

,

★ Pension Securities Fund, Inc.
April 24, 1963 filed 500,000 common.
Price—$100 ini¬
tially; thereafter, at net asset value. Business—A new
mutual fund designed to
provide an investment program
Proceeds—For

investment.

Broad

St., New York. Underwriter—None.
—Smith, Barney & Co., New York.
★ Safran Printing Co.

per

share

by

Glore,

issue you're planning to register?
News Department would like
about it so that we can prepare an item
an

similar to
Would
write

those

us

you'll find hereunder.

telephone

us
at REctor
2-9570
at 25 Park Place, New York
7, N. Y.

you

or

April 29, 1963 filed 225,720
(max. $18). Business
multi-color

printing

clients, and

produces

Prospective Offerings

for

26, 1963, Arthur B. Homer,
that the company will embark on

improvements

forms

and

for

commercial

conventional

★ Tri-Nite Mining Co.

ance

Chairman, announced
a $750,000,000
capital

completed

by

1965.

He

approximately two-thirds of the financing for:
will be generated internally and the bal¬
secured externally.
Mr, Homer added that this

would

not

be

required until at least

1964.

Broadway, New York. Underwriters—To
last public

Office

—

25

be named. The:

sale of securities in' May, 1955, was handled
& Co., and Smith, Barney & Co., New

by Kuhn, Loeb
York.

Central Valley National Bank

April 22, 1963 it
its stockholders

87,120

common

Address

(Oakland, Calif.)

reported that this bank is offering
the right to subscribe for an additional
was

Price-—40c. Business

exploratory mining for
zinc ore. Proceeds—For
advance royalties, payment of
balance due on a
mill, and 'construction. Address—405
Fidelity Bldg., Spokane, Wash. Underwriter
Mutual
Funds Co.,
Inc., Spokane.
■
i

held

shares

on

of record

the basis of

one

new

share for

April 8, with rights to expire

—

Chicago Burlington & Quincy RR

(5/8)

March 18, 1963 the company announced
plans to sell $5,400,000 of equipment trust certificates in May. Two ad¬
ditional issues, totaling about
$10,200,000, are tentatively
scheduled for Aug. 1, and Oct. 1. Office—547 W. Jackson

Blvd.,

Chicago.

bidders:

•

in

be

program

Co. Inc.

common.

to

May 3. Price—$31. Proceeds—To increase capital funds.
22nd
at Broadway,
Oakland, Calif. Under¬
writer—Davis, Skaggs & Co., San Francisco.

selling stockholders. Office—3939
Bellevue St., Detroit.
Underwriters—White, Weld & Co.,
Inc., New York, and Watling, Lerchen &
Co., Detroit.

engage

program

each four

Price—By amend¬
Company specializes in

publishers

business

/

Co.

Feb.

common.
—

Steel

Adviser

Proceeds—For

April 26, 1963 filed 800,000

Bethlehem

Address

(5/27-31)

ment

—Company plans to

$9.75

Corporation

to know

the

common. Price—By amend¬
(max. $20). Business—Company is
engaged in the
retail drug business.
Proceeds—For selling stockholder.
Address—6000 Manchester
Trafficway Terrace, Kansas
City. Underwriter—Scherck, Richter Co., St. Louis.

use.

at

said that

ment

trusts.

offered

ATTENTION UNDERWRITERS

(max.

★ Parkview Drugs, Inc.
April 29, 1963 filed 14,080

pension

interest, by

(5/13-17)

tels. Proceeds—For debt
repayment and other corporate
purposes. Office—3736 Lamar
Ave., Memphis. Under¬

for

accrued

.

^

Inns of America,

licenses

common

Do you have

purchase of commercial paper,
company also
acts as insurance
agents or brokers. Proceeds—For loan
expansion; Office—336 E. Main
St., Johnson City, Tenn.

Underwriter—None.

debentures due April

York.

the

owns

plus

Forgan & Co., Chicago.

if General Finance Co. of Johnson
City, Inc.
1963 ("Reg. A") , $211,700 of 6%
debentures,
due 1968.
Price—$100 each. Business—Lending of money

★ Holiday

99.625%

Comptometer Corp.

250,000

Weld & Co., Inc.; Goldman, Sachs
Co., and Stone & Webster Securities Corp., New York.

and

at

For

—

New

Victor

Underwriters—White,
&

offered

the

and

Proceeds

Office—44

Co., Los

Victor Comptometer
Corp.
$15,000,000 of 47/s% sinking fund

15,

1, 1963 filed 110,000 common.
Price—By amend¬
Business—Publishers of "The Wall Street Jour¬

selling stockholders.

New York

Glore, Forgan & Co., Chicago.

—

I":

|

v.

subscription by stockholders
basis

.

Inc.

("Reg. A")

the

Japan (Government of)
$27,500,000 of 5V2% external loan sinking fund bonds
due May 1, 1980 offered at
97.75%, to yield 5.71%, by

working
Underwriter

class B. Price—$290
per unit. Business—Fabrication and
assembly of components for use in aircraft, missiles and
space capsules. Proceeds—For
equipment and operating
capital.
Office—721 E. Herrin
St., Herrin, 111.
Under¬

—20

Wolf Corp.

on

Holly Sugar Corp.
;
$10,000,000 of 4%% convertible subordinated debentures
due May 1, 1983 offered at
par and accrued interest by
Eastman Dillon, Union Securities &
Co., New York.

offered

for

—None.

share

per

Underwriters—Kidder, Peabody & Co.;
York, and Barret, Fitch, North & Co., Inc.;
Offering—Expected in late May or early
'■;//•.
■/
.<
7":; v7;./Vy/ Cleveland.

Kansas City.
June.
"/••■
'

Price—By amendment

one

Corp. of Wisconsin

common offered for

$3.25

April

$1,000,000 of 6Vz% sinking fund de¬
and 100,000 class A
non-voting com¬

Insurance

each 4 held of record
April 10, with rights to expire
May 10. Piper, Jaffray & Hopwood, Minneapolis, is the
principal underwriter.
.'■«
V
7 - \ 77 7". n =7'/; • Globe Industries, Inc.
127,500 common offered at $11 each by McDonald &

at

10, 1963 refiled 420,047 common, of which
400,000
will be sold for the
company and 20,047 for stockholders.

William Penn Racing Association
March 8, 1963 filed

Life

Proceeds
For acquisitions, debt
repayment, and
other corporate
purposes. Office — 2540 West Penn way,

ness.

—

drawn.

.

311,625

April. 17,

Inc.

.

Each

General

and

also

April 2, 1962 filed 80,000 common. Price
ment (max. $11).
Business—Operation of
•tores.

through

nal," "Barron's"

Inc.

.....

Inc.

joint ventures, is
engaged in the general vending and food service busi-.

ment.

Price—$3. Business—Operates a chain of retail
drug stores. Proceeds—Expansion, equipment and work¬
ing capital. Office—738 Bellefonte
Ave., Lock Haven, Pa
Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y
Wiener Shoes

Company,

sus¬

pending this issue.

Inc.

$8.50 per share by Shields &

.

units offered at $28 each by Courts & Co., At¬
unit consisted of one $10 par 6J/2%
con'-*
vertible subordinated debenture due
April 1, 1973 and
2 common
shares.;
j:. ••
•: " - ' '*
%'/; ■
';-!: • 7 •' ■'/•'/ .7

of which 185,000
by certain stock¬
(max. $8.25). Business-

amendment

if Central Technology,

Jan.

Note—The

holders.,, Price—By

Underwriter—None

Western Steel, Inc.

Mortgage Companies,

common offered at

Hog,

lanta.

—

as a reaJ

Proceeds—For investment.

St., Denver, Colo.

Wyo. Underwriter—C.

^

Inc.,

Futures,, Inc.

estate investment trust.

Bush

Kansas City, Mo.

•*

Western

Underwriter—Gold¬

1963 filed 254,975 common,
to be. sold by
company and 69,975

are

Price—By amend.

125,000

Co., Inc., New York.

Inc.

April 26,

common.

Offering

100,000

ic Automatique,

Waterman Steamship Corp.

Aug. 29, 1'961 filed 1,743,000

Associated

—

Bids—May 14 (11 a.m. EDST) at
Plaza, New York. Information
Meeting—May 10 (11 a.m. EDST) at same address.
One

de¬

statements were

details, where available, will be carried in the
Monday issue of the "Chronicle "

(5/14)

1963 filed $30,000,000 of first and refunding
bonds due 1993. Proceeds—For construction.

12,

following registration

clared effective this week by the SEC.

Underwriter—M. G. Davis & Co., Inc., New York.

April

Thursday, May 2, 1963

.

.

(5/15)

machines

mortgage

.

33

page

Inc.

Commercial and Financial Chronicle

Underwriters—(Competitive). Probable

Salomon Brothers & Hutzler;

Bids—May 8 (12

noon

Halsey, Stuart &
CDST) at above address.

Chicago Union Station Co.* (5/15)
April 29, 1963 this company, jointly owned by four major
railroads, announced that it would accept separate bids
for the sale of (a)
$29,000,000 first mortgage sinking
fund bonds due June 1,
1988, (b) $10,000,000 of serial
debentures, series A, due June 1, 1964-68, r(c) $10,000,000 of serial
debentures, series B, due June 1, 1969-73.

Volume

Proceeds—To repay

first 3V&%

Number 6260

197

,

.

The Commercial and Financial Chronicle

.

stockholder, T. A. Eazor, Chairman. Office—15 Twentysixth St., Pittsburgh. Underwriter—W. E. Hutton & Co.,
14 Wall St., New York.

bank loans, and refund outstanding
bonds maturing July 1, 1963.

and first 27/s%

Office—210 S. Canal

St., Chicago. Underwriters—(Com¬
petitive). Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Blyth & Co.
Bids
May 15 (12 noon CDST) in Room 870, 516 W.
Jackson Blvd., Chicago.

Florida

Columbia Gas

System, Inc.

(6/6)

basis.. Proceeds—For

loan repayment. Office—101 Fifth
St., Petersburg, Fla
Underwriters—To be
named. The last rights offering in May 1959 was under¬
written by Kidder, Peabody & Co., and Merrill Lynch,

in June, for possible refunding operations. It has;definite
plans to sell $25,000,000 of debentures in October to
raise money for construction. Office—120 E. 41st St.,
New York. Underwriters—(Competitive). Probable bid¬

Pierce, Fenner & Smith, Inc., New York

Brothers

Properties, Inc.
1962 stockholders authorized

May

11,

issue

756.000 shares of

which will

be offered

a

the company tc
convertible preferred stock

new

to

stockholders

through subscrip¬

Commonwealth Telephone Co.
j
24, 1963 the company announced plans to offer
stockholders the right to subscribe for an additional
71,000 common shares on a l-for-10 basis. Proceeds—
For general corporate purposes. Office — 100 Lake St.,
Dallas, Pa. Underwriter—Eastman Dillon, Union Secu¬
rities & Co., New York/Offering—Expected in.late May.
;

and

April

Major Rgalty Corp., an affiliate. Office—223 East Alleg¬
hany Ave.,
Philadelphia. Underwriter—To be named

20, 1963 it

was

tion

have

filed

been

reported that
this

for

tion

equipment
Series

and

II

will

other

nounced

ing

will be

3029

16,

it

Connecticut Yankee Atomic Power Co.

Great Northern Ry.

April 23, 1963 it

was reported that the 12 utilities which
jointly own this new firm, have petitioned the SEC for
exemption from the Public Utility Holding Company Act
to permit the negotiated sale of $55,000,000 of the firm's
bonds. The request has been opposed by a major under¬
writer which wants the bonds to be sold at competitive
bidding. Business—Company was formed in December,
1962, to own and operate a 500,000 kw. atomic power
plant at Ha.ddam Neck, Conn. Proceeds—For construction
of the $70-$80,000,000 plant. Office—441 Stuart St., Bos¬

Feb.

26,

1963 the company stated that it will have to
approximately $690,000,000 through the sale of
securities, to fnance its five year construction program.
addition

it

will

be

required to refinance $27,561,000 of 3%.% bonds maturing July 1, 1963, and
$24,331,000 due July 1, 1967. Office—4 Irving Place, New
.

Public

Service

1963

12,

the

Co.

plans

announced

company

to

Kidder,
Dil-.
Ion, Union Securities & Co.; Equitable Securities Corp.;
White, Weld & Co.; First Boston Corp.

derwriters—(Competitive).

Probable

bidders:

Peabody & Co.-Blyth & Co. Inc. (jointly); Eastman

•

(Government of)

Japan

May 1, 1963 it was reported that the Government plans
to sell an additional $35,000,000 of external loan bonds
in the U. S. during the fiscal year ending March 31, 1964.It is expected that the majority would be sold by Dec.
'31, 1963. Underwriter—First Boston Corp., New York.
Japan Fund,
April

1963

18,

Inc.
it was

reported

that

Fund had authorized the officers to

sibility of

(5/21)

holders.

directors

of

the

investigate the pos¬

rights offering of common stock to stock-,
closed-end diversified investment

a

Business—A

seeking capital appreciation through invest¬
primarily in common stocks of Japanese firms.

company
ments

Office—25

Broad

St., New York.

Underwriters—Bache

Co.; Paine, Webber, Jackson & Curtis, and The Nikko
Securities Co., Ltd., New York.

&

Jersey Central Power & Light Co.
12, 1963 it was reported that this subsidiary of
Public Utilities Corp., plans to sell $10,000,000

Utilities Co.

March

General

of 30-year

fall.

the

Underwriters—(Competitive). Probable bidders: Stone
& Webster Securities Corp.; Lehman Brothers-Equitable
Securities Corp. (jointly); Glore, Forgan & Co.-W. C.
Langley & Co. (jointly); Lee Higginson Corp.

Inc.

Light Co.

$14,000,000 of first mortgage bonds in September.
Address—Orpheum-Electric Bldg., Sioux City, Iowa. Un¬

Jap. 29, 1963 the company announced plans to sell 100,000 shares of preferred stock (par $100) in the second
half of 1963. Office—285 Liberty Ave., Beaumont, Tex.

raise

In

States

a

sell

2, 1963 it was reported that the company plans
to sell S6,600,000 of equipment trust certificates. Office
—39 Broadway, New York. Underwriters—(Competi¬
tive.) Probable bidders: Salomon Brothers & Hutzler;
Halsey, Stuart & Co. Inc. Bids—Expected May 21 (12
noon
EDST) at above address.

Underwriters—To be named.

York,

Iowa
March

March

Gulf

&

Power

on

16, 1963 it was reported that the company plana
to sell $10,000,000 of bonds in late 1963 or early 1964. Of¬
fice—823 Walnut St., Des Moines. Underwriters—(Comr
petitive). Probable bidders: First Boston Corp.; White,
Weld & Co.; Halsey, Stuart & Co. Inc.; Equitable Securities Corp.; Kidder, Peabody
& Co.; Eastman Dillon,
Union Securities & Co.; Lehman Brothers; Blyth & Co.

Atlanta.

(jointly).

New

Iowa

by Interhandel stockholders, also
the U. S. District Court at Wash¬

Underwriters — (Competitive). Probable bid¬
(Bonds): Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co. (jointly); Halsey,
Stuart & Co. Inc.; First. Boston Corp.; Harriman Ripley
& Co.; Morgan Stanley & Co.; Lehman Brothers. (Pre¬
ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Co.-Equitable
Securities Corp. (jointly); Morgan Stanley & Co. Bids
—Expected Nov. 7, 1963.
•
^v/'

173,433 shares

Jan.

ders:

"

of

tional

Proceeds—For construction. Office—270 Peaciitree Bldg.,

Proceeds—For construction. Address—Sel-

Co.

to

designed to settle the 20-year old dispute

approved

plans

was reported that this company
offer stockholders the right to subscribe for an

addi¬
l-l:or-4 basis. Business—En¬
gaged in automobile and commercial financing, and the
making of small loans. Proceeds—For general corporate
purposes. Office — 3430 Broadway, Kansas City, Mo.
Underwriter—A. G. Becker 8c Co., Inc., Chicago. Offer¬
ing—Expected in early June.

an

Georgia Power Co. (11/7)
Jan. 22, 1963 it was reported that this subsidiary of The
Southern Co., plans to sell $30,000,000 of first mortgage
bonds and $7,000,000 of preferred stock in November.

den St., Berlin, Conn. Underwriters—To be named. The
last public offering of bonds on Jan. 20,
1960 was
handled by Morgan Stanley & Co.-Putnam & Co.-Chas

Edison

reached

Swiss hold¬

St., New York. Underwriters
(Competitive). Probable bidders: Blyth & Co.-First
Boston Corp. (jointly); Lehman Brothers-Kuhn, Loeb &
Co.-Glore, Forgan & Co. (jointly); Bache & Co.

was

Consolidated

a

terials. Office—111 W. 50th

Light & Power Co.
Dec. 10, 1962 it was reported that the company is con¬
sidering the issuance of about $22,500,000 of bonds in

ton.

had

ington, D. C, Business—Company is a leading domestic
chemicals and photographic ma¬

-

W. Scranton & Co.-Estabrook & Co.

Department

April 24, 1963 it

an¬

producer of dyestuffs,

Connecticut

1964.

Interstate Securities Co.

agreement with Interhandel,

company,

recently

,<

or

Corp.

must be approved by

—(Competitive). Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Brothers & Hutzler; Stone & Webster
Securities Corp.

1963

& Co. Inc.;

American Electric Power Co.,-2 Broadway,

lion, the Government would receive about $140 million
$60 million. The settlement terms,

reported that this company plans
to sell $8,000,000 of first mortgage bonds in June 1963,
Office—408 W. 7th Street, Fort Worth, Tex.Underwriters
1963

Justice

the

that

(8/6)

Electric Co.

was

Dillon, Union Securities & CO;.; Harriman Ripley
First Boston Corp. Bids—Expected Aug. 6 at
New York.
•

man

Co.,

and Interhandel about

Community Public Service Co.
Jan.

&

it

Ave., Fort Wayne, Ind.^Underwriters— (Competi¬
tive). Probable bi,d(jers: Halsey, Stuart & Co. Inc.; East¬

ment in 1942 as a German asset. The stock represents
98% of the voting control of the company. Mr. Kennedy
said that if General Aniline should be sold for $200 mil¬

to

.

Securities

12, 1963

Run

under¬

control of the 540,894 class A and 2,050,000 class B
shares of General Aniline seized by the U. S. Govern¬

space

Klingle Rd., N. W., Washington, D. C. Underwriters
,".
•••
r\

—To be named.

Union

was

over

explora¬
non-communications con¬

issued

be

Dillon,

1957

Indiana & Michigan

reported that this subsidiary of
American Electric Power Co., Inc., plans to sell $45,000,UOO of first mortage bonds due 1993. Office—2101 Spy

Offering—Indefinitely postponed.

out-of-court

FCC-approved com¬
munications common carriers, with the provision that
no
more
than half the company's total shares can be
held by these carriers, and no individual or group may
hold over 10% of the remaining 50%. Price—Maximum
of $100 per share. Business—Congress
has authorized
the company to provide satellites and ground facilities
for the international transmission of
telephone, tele¬
graph, television and other communications. Office—
cerns.

Eastman

by

in December

General Aniline & Film

of incorpora¬

Series I

public, firms' that produce

the

rights offering

New York.

in Washington,
shares, ;;without par

.

March

to $6,000,000 convertible debentures oi

April 3, 1963 Attorney General Robert F. Kennedy

papers

C.i Company's common voting
value, will be divided into two series.
issued to

written

company,

D.

last

The

Corp. Z,

Satellite

Communications

purchase up

Telephone Co., Inc.

(6/11)
1963 it was reported that this A. T. & T. sub¬
sidiary plans to sell $20,000,000 of debentures in June^
marking its first sale of debt securities. Office—240 No.
Meridian St., Indianapolis. Underwriters—(Competitive),
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; First Boston Corp.; White, Weld & Co.;
Eastman Dillon, Union Securities & Co.-Kidder, Pea¬
body 8c Co. (jointly); Blyth & Co.-Lehman Brotherst
Merrill Lynch,
Pierce, Fenner & Smith Inc.-Salomon
Brothers & Hutzler (jointly). Bids—Expected June 11
(11 a.m. EDST) at 195 Broadway, New York. Informa¬
tion Meeting—June 6 (2:30 p.m. EDST) at same address.

Proceeds—To retire outstanding 6% preferred stock

ters.

Bell

March 4,

rights on a l-for-10 basis. Price—By amendment
Business—Development'and operation of shopping cen¬

Bids—Expected June 6.

Feb.

,,

tion

Hutzler.

&

-

Fair

Food

ders: Morgan Stanley & Co.-First Boston Corp.
(joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith Inc.-White,
Weld & Co. (jointly); Halsey, Stuart & Co. Inc.; Blyth

Brothers-Salomon

South,

St.,

35

Glore, Forgan 8c Co.-Eastman Dillon, Union Securities &
Co.; Morgan Stanley & Co. Bids—Expected July 9 at 195
Broadway, New York.
Indiana

for about 457,265 additional common shares on a l-for-20

,

18, 1963 the company stated that it has made
tentative plans to sell $25,000,000 of 25-year debentures

Co.-Lehman

Corp.

12, 1963 the company announced plans to offer
stockholders, sometime in 1963, the right to subscribe

March

&

Power

March

—

-

(1827)

bonds and $9,000,000 of 25-year debentures in
Ave., at Punch Bowl Rd.,-

Address—Madison

Morristown, N. J. Underwriters—(Competitive). Prob¬
able bidders: Halsey, Stuart 8c Co. Inc.; White, Weld &
Co.; First Boston Corp.; Eastman Dillon,
Co.-Salomon

&

Brothers

&

Pierce, Fenner & Smith Inc. (jointly);
& Co.; Harriman Ripley & Co.

Electric Light Co.
April 30, 1963 the company announced plans to sell $15,Z,S20,000,000 of securities in 1964 to help finance its $26,York. Underwriters—To be named. The last bond issue,-,
000.000 construction program. Office—176 Cumberland
in December, 1962, was won at competitive bidding
by
Ave., Wethersfield, Conn. Underwriters — First Boston
Halsey, Stuart & Co. Inc.
Other bidders were Morgan
Corp., New York; Putnam & Co., Hartford; Chas. W.
Stanley & Co., and First Boston Corp.
Scranton & Co., New Haven.
ir Hartford

Louisiana

&

Power

Union Securities
Lynch,'

Hutzler-Merrill

Kidder Peabody

Light Co.

it was reported that this subsidiary of
Middle South Utilities, Inc., may issue $25-$30,000,00()
of bonds early in 1964. Proceeds—For construction. Of¬
fice—142 Delaronde St., New Orleans. Underwriters—
Feb.

20,

1963

"

Consumers

Power

April 24, 1963 it

Co.

b'

reported that the company plans to
sell $20,000,000 of straight debentures in the second half
of

1963.

was

Office—212

&

W.

Hawaiian
March

Oct.

9,
100,000

1962

Inc.
ICC authorized

the

,

the

issue
common. Price—By amendment (min. $5). Busi¬
ness—A motor vehicle common carrier
operating in nine
eastern states from Vermont to Virginia. Proceeds—For
working capital, debt repayment and advances to sub¬
sidiaries.

Office

—

Moonachie

company

Ave.,

to

Carlstadt,

N.

J

Underwriter—Allen & Co., New York.
•

Eazor

Express, Inc.

April 24, 1963 it
ized

the

stock.

Price

general
„

to

sale

(5/7)

reported that the ICC had author¬
125,000 shares of this firm's common
$11.50.
Business — A motor carrier of
was

of

—

commodities operating

West Va., and

west to 111.




in 11 states from Mass.
.Proceeds — For selling

Telephone Co.

(jointly).

1963, the company announced pians to sell
about $9,000,000 of common stock late in the third quar¬

", r/\

Ways,

Ripley & Co., Inc. (jointly); White, Weld & Co.-Blyth.
& Co., Inc.- Shields 8c Co. (jointly); Halsey, Stuart &
Co.
Inc.;
First Boston Corp.-Glore, Forgan
& Co,,
(jointly); Salomon Brothers & Hutzler-Eastman Dillon,
Union
Securities
&
Co.-Equitable
Securities
Corp.

—

April 22, 1963 it was reported that the company has ten¬
tative plans to issue $50,000,000 of first mortgage bonds
in the first quarter of 1964. Office—30 Rockefeller Plaza,
New York. Underwriters—(Competitive). Probable bid¬
ders: Halsey, Stuart & Co. Inc.; First Boston
Corp.;
Morgan Stanley & Co.; Stone & Webster Securities Corp.
Eastern Freight

Fenner & Smith Inc.-

quarter. Office—900 Richards St., Honolulu.
Un¬
derwriters
Dillon, Read & Co. Inc., New York and
Dean Witter & Co., San Francisco.

Inc.; White, Weld & Co.-Shields & Co.
(jointly); Harriman Ripley & Co. Inc.-First Boston Corp.
(jointly); Morgan Stanley & Co.
•

(Competitive.) Probable bidders: Merrill Lynch, Pierce,
Kidder, Peabody & Co.-Harriman

Ltd.

third

Co.

Duke Power Co.

Electric Co,,

5, 1963 it was reported that this company plans
to sell about $14,000,000 of first mortgage uonds in the

Michigan Ave., Jackson, Mich.
Underwriters—(Competitive). Probable bidders: Halsey,
Stuart

Hawaiian
March

25,

ter. Details

have not been decided upon. However,

it is
rights
basis to stockholders. Office—1130 Alakea St., Honolulu.
Underwriter—Kidder, Peabody & Co., New York.

expected that the

;

Hitachi, Ltd.
10, 1963 it

April

common

was

will

be offered on

a

reported that this Japanese

firm

16, 1963 it was reported that this company plans to
$10,000,000 of bonds in the fourth quarter. Office—
Stuart St., Boston. Underwriters — (Competitive).
Probable bidders: Halsey, Stuart & Co. Inc.; First Bos¬
ton Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.;
Eastman Dillon, Union Securities & Co.; Kidder, Pea¬

Jan.
sell

Company is Japan's largest manufacturer of electrical
equipment and appliances turning out over 10,000 dif¬
ferent

products

441

ranging from locomotives to transistor
For
expansion.
Address— Tokyo,

Proceeds

—

Japan. Underwriter—Dillon, Read & Co., Inc., New York.

+ Illinois Bell Telephone Co.
(7/9)
April 30, 1963 it was 'reported that the company plans
to offer $50,000,000 of first mortgage bonds due 2003.
Proceeds—To repay advances from A. T. & T., parent,
Office—212 W. Washington St., Chicago. Underwriters—

(Competitive). Probable bidders: Halsey, Stuart & Co.;

,

Massachusetts Electric Co.

plans to raise between $10-$20,000,000 in the U. S. by the
saie of A. D. R's in the third quarter of 1963. Business—

radios.

.

ir Lousiville & Nashville RR. (5/13)
April 30, 1963 it was reported that this road plans to
sell $5,385,000 of equipment trust certificates due June
1, 1964-78. Office—220 E. 42nd St., N. Y. Underwriters
—(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—May 13 (12
noon EDST)
at above address.

body & Co.; Blyth & Co.-White, Weld & Co.
Mexico

April 5, 1963 it
'

(jointly).

(Government of)
was

reported that the Mexican Congress
$100,000,000 of bonds in other

had authorized the sale of

countries. It is expected

that the majority of them
Continued

on

would

page

36

36

(1828)

The

Continued from page 35

To

be

1960

be sold in the U. S. Details as to terms,

timing, etc., have
not
been decided
upon.
Proceeds—For economic de¬
velopment. Underwriter—Kuhn, Loeb & Co., New York.

I■:< "

Mountain States

•

the

basis

of

one

share

new

each

for

10

Fourteenth

28,

1962 it

reported

was

1
that

the

company

plans

$30,000,000 of first mortgage bonds in June 1963
Proceeds—To repay outstanding loans. Office—920
S. W
Ave., Portland, Ore. Underwriters—(Competitive)
Probable
bidders: Lehman
Brothers-Bear,: Stearns &

held

Co.-Salomon'

Brothers-

&

Stuart & Co. Inc.; Blyth &

Hutzler^ (jointly);

Halsey,

Co.-White, Weld & Co. (joint¬
ly); Eastman Dillon, Union Securities &
Co.-Kidder,
Peabody & Co. (jointly).
>Y
:

St., Denver. Underwriter—None.

.

National

Uni-Pac, Inc.
'
Pacific Telephone &
March 27, 1963 it was reported that the
Telegraph Co. (6/12) /
company plans
April 23, 1963 the company announced that its
to file a registration statement
preferred
covering 150,000 common.v
and common stockholders: would
be offered the right
Price—$4. Business—The. sale or lease of coin operated
to subscribe for
13,013,969 common shares of Pacific
vending machines. Proceeds»— To redeem outstanding *
Northwest Bell Telephone
Co., a former division which
debentures, and for other corporate purposes. Office—
became independent on June
15 Peachtree St., N. W.
30, 1961, on the basis of 7
Atlanta, Ga. Underwriter—To
Northwest
common
for
each
8 Pacific preferred or one<
be named.
'
:

V

•

Nevada

•

Northwest common for each 8 Pacific common
shares
held of record June 4. Rights will
expire July 3. A pro¬
spectus and warrants covering the sale will be mailed to

Power Co.

April 16, 1963 the company announced plans to sell about
$10,000,000 of first mortgage bonds in Sept. Address—

stockholders about June 12. A
T. & T.; which owns about
90% of Pacific Telephone's stock will be
the principal
subscriber to the offering. Office—140
New

Fourth and Stewart Avenue, Las
Vegas. Underwriters—

(Competitive):

White, Weld & Co.; Eastman Dillon,
Union Securities &
Co.-Kidder, Peabody & Co. (jointly);
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fen& Smith Inc.

ner

Pennsylvania Power Co.
April 9,

Nevada Power Co.

sell

April 16, 1963 the company announced plans to sell about
$4,000,000 of common stock in September.
Transaction
is subject to approval
by State and Federal

Jan.

16, 1963

it

reported

was

that this utility

Castle,

—

New York Central RR

(5/23)

April 23, 1963 the company announced
plans to sell $2,700,000 of equipment trust certificates in
May/Office—
466 Lexington
Ave., New York. Underwriters—(Compe¬
titive). Probable bidders: Salomon Brothers &

Halsey, Stuart & Co.

Inc.

at above address.

Bids—M^y 23 (12

Hutzler;
EDST)

noon

E.

Dillon,

*

&•

Brothers

Co.-Ladenburg,,

Thalmann

&, Co.-

&

Hutzler (jointly);
Halsey, Stuart
Lynch, Pierce, Fenner & Smith Inc.Dean Witter & Co.
(jointly); First Boston Corp.-Blyth
& Co. (jointly).
Bids—Expected June 12 (11 a.m. EDST)
at 300 Park
Ave., New York. Information Meeting—June
&

Co.;

10

<,3:45 p.m. EDST) at 15 William St.', New York.

Merrill

—

80 Park

Place,-

Newark, N. J. Underwriters
(Competitive). Probable
Halsey, Stuart & Co. Inc.; First Boston
Corp.;
White, Weld & Co.-Blyth &
—

bidders:

Co.-Goldman, Sachs

& Co.-

Ripley & Co. (jointly); Lehman BrothersLynch, Pierce,- Fenner & Smith Inc.-Salomon
Brothers & Hutzler
(jointly). Bids
Expected June 18
(11 a.m. EDST) at above address. Information
Meeting
—

—June 13 (2 p.m.
EDST) at One Chase Manhattan
New York.
V. • ■ •
-V
; y

Plaza,

St., Ithaca, New York. Underwriters
(Competitive).
bidders: Kidder,
Peabody & Co. - Salomon
Brothers & Hutzfer
(jointly); First Boston Corp.-Glore,
Forgan & Co. (jointly); Halsey, Stuart &
Co.; Harriman
Ripley & Co.; Blyth & Co.
—

Nippon Telegraph & Telephone Pubilc
Corp.
April 16, 1963 it was reported that the
company plans to
sell $20,000,000 of bonds in
the United States in the

third

quarter

of

1963.

Business

—

wholly-owned

Nippon

Telegraph,

by the Japanese Government, furnishes
domestic telephone and
telegraph services, without com¬
petition, in Japan. Proceeds—For expansion. Office—
Tokyo, Japan.
Underwriters—Dillon, Read & Co.; First
Boston Corp., and
Smith, Barney & Co., New York.
Norfolk & Western Ry. (6/24)
April 8, 1963 it was reported that this
road plans to sell
about $4,300,000 of 1-15
year equipment trust certificates
,

in

June.

Office—8

North

Jefferson

St., Roanoke, Va.
Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon
Brothers & Hutzler. BidsJune 24 (12 noon
EDST).
•

$20,000,000 of first mortgage bonds

due

For

construction.

111.

Underwriters—(Competitive).

Office—615

Eastern

First Boston

Co.,
Co.

Ave.,

Bellwood,

Probable

bidders:

Corp.; Halsey, Stuart & Co. Inc.j\
Blyth &
Inc.-Equitgble Securities Corp.;
Glore, Fbrgan &
Bids—Expected July ,10.

Northern Natural Gas Co.
16, 1963 it was reported that

Jan.
sell

it plans to sell
1988. Proceeds—

$30,000,000

1964. Office

of

2223

debt

securities

\
this company plahs to
sometime

in

1963-

Dodge St., Omaha, Neb. Underwriter




or

19, 1963, Allstate Enterprises, Inc.,
subsidiary, an¬
that it had delayed its
plans to form a new

nounced

fund

until

it

received

clarification

ruling which "has been construed
by
registered

Sears'
of

or

would

said

that

some

to

of

an

mean

SEC
that

companies

could
not
purchase
to divest themselves
mutual fund."
Earlier, All¬

be required

owned

a

the

fund would be in operation late in
"very small scale," and would be started on
state-by-state basis as approval was

1963
a

investment

stock

it, if Sears' itself

state

on

a

granted. Office—

925

So. Homan
Ave., Chicago. Distributor—Allstate
terprises, Inc., Chicago.

En¬

of Long Island
16, 1963 it was reported that the bank
plans to
offer stockholders the
right to subscribe for an addi¬
tional 141,519 common shares
on
a
l-for-9 basis.
The

proposal will be voted

on

by stockholders in mid-June
and the date of the
meeting would also be the record
date for the rights
offering. Address—Huntington, N. Y.
Underwriter—M. A. Schapiro &
Co., New York.
Southern California Gas Co.

April

22,

1963

it

was

reported

(6/26)

that

this

subsidiary

of

Pacific Lighting
Corp., plans to sell $40,000,000 of first
mortgage bonds. Proceeds—To refund
outstanding 5Va%
bonds due July
1, 1983, and for construction. Office—810
South Flower
St., Los Angeles.

Underwriters—^(Compe¬

titive). Probable bidders: Halsey, Stuart &
Co. Inc.;
White, Weld & Co.-Eastman Dillon, Union Securities &
Co.; Blyth & Co.-Merrill Lynch,
Pierce, Fenner & Smith
Inc. (jointly).
Bids—Expected June 26.

fic

Lighting

gage

was

reported that this subsidiary of Paci¬
Corp., plans to sell $27,000,000 of first mort¬

bonds in

2736,-Terminal

the

fourth

company

St., Richmond, Va./and 70 Pine-St., New.
(Competitive)."Probable bidders:
Corp.; Eastman Dillon, Union Securities
& Co.-Salomon Brothers & Hutzler/ (jointly); Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co.-White, Weld
& Co. (jointly). /
;
-" y :\^Vv'\y YvY"
./•"

quarter.

Address—P.

Annex, Los Angeles

54,

—

'-Y-;

Tennessee Valley Authority
Oct. 3, 1962, A. J. Wagner, Chairman,v stated that the
Authority plans to issue $50,000,000 of short- or longterm securities in the spring'of
1963.'-Proceeds—For
construction.
Office—Knoxville, Tenn. Underwriters—
To be named.
On Jan. 24, 1962 the Authority sold at
competitive bidding $45,000,000 of 4^% bonds due Feb.
l; 1987. The issue was won by a group jointly managed
by Chase Manhattan Bank; Morgan Guaranty Trust Co.
of New York; Chemical Bank New York Trust Co.; C.
J. Devine & Co.; and the First National Bank of Chicago.
•
Tokyo (City of) • V-f
':-y;'/;y y:y';!
May ly 1963 it was reported that the Diet had authorized
the sale of $20,000,000 City of Tokyo bonds in the U. S.
during the fiscal year ending March 31, 1964.
Under¬
writer—To be named. The last issue of Tokyo bonds in
March, 1927, was handled by Kuhn, Loeb & Co. Offer*
ing—Indefinite.
/
; r,.

Calif.

O.

.

_

Transcontinental

,

v

Gas

Pipe Line Co.
Feb. 20, 1963 it was reported that the
company is con¬
sidering the issuance of $30-$40,000,000 of debt securi¬
ties in the third quarter. Proceeds—For expansion. Of¬
fice—3100
Travis
St., Houston.
Underwriters—White,
Weld & Co., and Stone & Webster Securities
Corp., N. Y.
Union

Electric

Co.

March 19, 1963 the company stated that it
plans to issue
$20,000,000 of preferred stock and $40,000,000 of bonds

by the end of 1964. Office—315 N. 12th Blvd., St. Louis.
Probable bidders: (Pre¬
ferred): First Boston Corp.; Dillon, Read & Co., Inc.;
Lehman Brothers; White, Weld &
Co.; Blyth & Co.,
Inc. (Bonds): Halsey, Stuart & Co.
Inc.; Lehman Brothers-Blyth & Co., Inc. (jointly); White, Weld & Co.Shields & Co. (jointly); First Boston Corp.

Underwriters—(Competitive).

•

Union

Light, Heat & Power Co.

(6/25)

30, 1963 it was reported that this subsidiary of
Cincinnati Gas & Electric Co., plans to sell
$6,500,000 of
first mortgage bonds due 1993. Office—139 East Fourth

St., Cincinnati. Underwriters—(Competitive). Probable
bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co. Inc.First Boston Corp.
(jointly); Merrill Lynch, Pierce, Fen¬
ner
& Smith
Inc.-Kidder, Peabody & Co. (jointly);
Equitable Securities Corp.; White. Weld & Co.; Kidder,
Peabody & Co. Bids—Expected June 25 11 a.m. EDST).

Washington Gas Light Co.
AUi.. 1, 1962 it
sel;
of

Box

Under¬

-

reported that this company plans to
$12,000,000 of 25-year bonds,, in the second quarter
1963. Office—1100 H. St., N. W.,
Washington, D. C.

Con
sey,

was

rwriters—(Competitive): Probable bidders: East¬
Dillon, Union Securities & Co.; Equitable Securities

/Kidder, Peabody
ituart & Co. Inc.

Wavelabs, Inc.
April

•;

& Co.; First Boston Corp.; Hal¬

\

16,

1963 it was reported that the company had
a "Reg.
A" covering 100,000 capital shares
in order to prepare a full
filing covering a larger num¬
ber mf shares. It is expected that the
registration state¬
withdrawn

ment will

be filed

within

a

month. Business—Manufac¬

ture of

airborne and shipboard vibration monitoring de¬
vices and equipment. Proceeds—For debt
repayment, ad¬
vertising, research and working capital. Office — 4343
Twain St., San Diego. Underwriter—To be named.
Western Transmission Corp.

April 17,

1963 it was reported that this newly-formed
pipeline company plans to file a registra¬
statement covering an undetermined number of

natural
tion

gas

common

U.

S.

shares to be offered initially to stockholders of
Gas Corp. Address—9601 Wilshire

Natural

Blvd.,

Beverly Hills, Calif. Underwriter—None.
Western

Union Telegraph Co.
1963 the company announced that it had ar¬
ranged to borrow a total of $100,000,000 by sale of notes
maturing serially, one-third at the end of each of the
years 1964, 1965 and 1966. It plans to refinance the serial
notes by issuance of long-term debt
securities, but has

March 6,

not determined the terms

or timing of the action. Office
St., New York. Underwriters—Kuhn, Loeb
& Co., Inc., and Lehman
Brothers, New York.

—80 Hudson

Wisconsin

Public

Service

Corp.

March

19, 1963 it was reported that this company
plans to sell $15,000,000 of bonds later this year. Office
—1U29

Southern Counties Gas Co. of Calif.
Jan. 2, 1963 it

the

Canal

York. Underwriters

Security National Bank

April

Underwriters—(Competitive).

Northern Illinois Gas Co.
(7/10)
April 9, 1963 the
company reported that

and

man

Sears, Roebuck & Co.

mutual

'V

to
$50,000,000 of general mortgage bonds. Proceeds—
acquire stock of Central of Georgia Ry.; retire first
mortgage 3%% bonds of Atlanta & Charlotte Air Line
RR.; reimburse the treasury for capital expenditures and
provide for additional Capital expenditures. Offices—14th

Una

-

Probable

;

authorized

issue

.

Feb.

*f

Southern Railway Co.
Jan. 15, 1963 stockholders

Merrill

foew

York State Electric & Gas
Corp.
Apnl 3, 1963 it was reported that the
company plans to
sell $20,000,000 of debt
securities to finance its construe-'
tioi program for 1964 and
1965. Office—108 East Green

at above address.

April

Public Service Electric & Gas Co.
(6/18)
March 4, 1963 it was
reported that this company plans
to sell $40,000,000 of
first mortgage bonds due 1993.
Proceeds — For construction.
Office

Hairiman

(6/4)

April 24, 1963 it was reported that this company plans
to sell $8,100,000 of equipment trust Certificates. Office
—165 Broadway, New York. Underwriters—(Competi¬
tive). Probable bidders: Solomon Brothers & Hutzler;
Halsey, Stuart & Co. Inc. Bids—June 4 (12 noon EDST)

Washington S't., New

.Underwriters-—(Competitive).
Probable
Kidder, Peabody & Co.,-White, Weld & Co.-

Salomon

(Competitive). Probable bidders:

Peabody & Co.-Lee
Higgmson Corp.-White, Weld & Co.
(jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Smith, Inc.
:

Office—19

Pa.

Union- Securities

plans to

Smith. Inc.-Kidder,
Peabody & Co.-White, Weld & Co. (jointly); First Bcs^
ton Corp.
(Preferred) First Boston Corp.; Dean Witter1
& L j.-Smith,
Barney & Co.-Wertheim & Co. (jointly);
Equ. cable Securities Corp.-Kidder,

(6/12)

reported

was

Equitable Securities Corp.-Shields & Co.
(jointly); Har¬
riman Ripley & Co.; Lehman
Brothers-Eastman

$10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441
Stuart St., Bos¬
ton. Underwriters
(Bonds) Halsey, Stuart & Co;. Inc.; Lehman BrothersEquitable Securities Corp, (jointly);
Kuhn, Loeb & Co.;
Mefdll Lynch, Pierce, Fenner &

it

construction.

bidders:

—

sell

1963

that this utility plans to
$9,000,000 of first mortgage bonds due 1993. Proceeds

—For

regulatory
Address
Fourth and Stewart
Ave., Las
Vegas. Underwriter—White, Weld & Co., New
York,
New England Power Co.
authorities.

Montgomery

St., San Francisco. Underwriter—None.

:

t

Southern Pacific Co.

First-Boston

Sixth

Of record June 3. Rights would expire June 28. Proceeds
—To repay bank loans incurred for- construction. Office
—931

(jointly); White, Weld & Co.

to issue

*

Thursday, May 2, 1963

.

To

•

Pacific Power & Light Co.

right to subscribe for about 4,037,432 additional capital
on

& Co.

Nov.

.

shares

-

■■Y

..(6/3)
.;Y\ Y;Y:
/, V■. •
April 22, 1963 it was reported that this utility, 86.75%
owned by A. T. & T., plans to offer 'stockholders the
,

v Otter Tail Power Co. y

man

Telephone & Telegraph Co.

.

&

11,

16, 1963 it was reported that this company plans
$10,000,000 of bonds in the fourth quarter. Office
—215 South Cascade
St., Fergus Falls, Minn.. Under¬
writers—(Competitive). Probable bidders: Halsey, Stuart ■
& Co, Inc.; Blyth & Co.
Inc.; Glore, Forgan & Co.-Kal-'

Hutzler; Halsey,

.

writers—(Competitive) Probable bidders: White, Weld
Co.; Blyth & Co.: Inc.; Merrill Lynch, Pierce, Fenner
& Smith Inc.; Halsey, Stuart & Co. Inc.; First Boston
Corp.
'
'
•
J.

16,

to sell

?

•

Stuart & Co. Inc.

Nov.

on

Jan.

r

early June. This will be the second .installment
of a total
$9,000,000 issue. Address—Missouri Pacific
Bldg., St. Louis 3, Mo. Underwriters—(Competitive).
or

&

debentures

(Competitive). Probable bidders;- Halsey, Stuart & Co.
Inc.; First Boston Corp.-Blyth & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Smith Inc.-Kidder, Peabody &
Co:~White, Weld & Co.. (jointly); Equitable Securities
Corp.-Eastman Dillon, Union Securities & Co.
(jointly);
Lehman Brothers-Riter & Co.
(jointly). - '
.

Brothers

of

negotiated basis by Blvth & Co..

half of the year. Proceeds — For
construction.
Office—15 South Fifth
St., Minneapolis. Underwriters—

Missouri Pacific RR

Salmon

a

the last

*

bidders:

last sale

on

(Minn.)
1963, it was reported that this company plans
sell $25,000,000 of first
mortgage bonds due 1993 in

to

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; First Boston Corp.; Blyth & Co.

Probable

The

handled

Northern States Power Co.
Jan.

Michigan Wisconsin Pipe Line Co.
March 12, 1963 the company stated that it is considering
the issuance of about $25,000,000 of bonds in the third
quarter, to refund a like amount of outstanding 6V4%first pipe line bonds due June 15, 1977. Action is con¬
tingent upon successful completion of its rate case now
pending with the FPC. Office—^-500 Griswold St., Detroit.

May

named.

was

Inc., N. Y.

*

March 13, 1863 it was reported that this road plans the
sale of $4,500,000 of equipment trust certificates in. late

Commercial and Financial Chronicle

i

,

North

Marshall

St.,

Milwaukee.

Underwriters—

(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; East¬
man
Dillon, Union Securities & Co.-Salomon Brothers
& Hutzler

(jointly); First Boston Corp.; White, Weld &
Co.; Kidder, Peabody & Co.

Volume

6260

Number

197

The Commercial and Financial Chronicle

.

.

.

The

Indications of Current

week

IRON

of

Index

1957-1959—

for

weekly production

105.0

(bbls.

*8,553,000

8,596,000

8,136,000

29,067,000

29,006,000

29,935,000

27,790,000

3,543,000

3,040,000

3,482,000

2,758,000

13,957,000

15,150,000

12,580,000

5,769,000

5,915,000

5,988,000

5,723,000

207,576,000

208,404,000

213,936,000

202,508,000

25,527.000

24,789,000

85,759,000

84,323,000

21,441,000
81,054,000

43,295,000

44,034,000

42,179,000

40,175,000

85,015,000

84,062,000

81,244,000

282,185,000

—

—

—

<

ASSOCIATION

AMERICAN RAILROADS:

OF

loaded

freight

Revenue

freight received
(U.

OUTPUT

V

(number of cars) —
from connections (no. of

BUREAU OF MINES):

S.

Total

PLANNING

ADVANCE

Municipal

and

State

Federal

25
25
25
25

561,450

556,081

534,999

,519,075

510,195

-'""'>

each)

7,970,000
378,000

317,000

$557X00

$347,900

$418,000

$146,100

395,900

-249,600

260,300

71,300

161,100

98,300

157,700,.

74,800

142,200

93,900

141,100

71,500

18,900

4,400

16,600

3,300

v.

DEBITS—BOARD

March

Electric

(in

output

BRADSTREET,

steel

Finished

Pig iron

—

DUN

16,191,000

16,425,000

15,054,000

312

255

329

335

——

ton)

gross

^

6.196c

6.196c

6.196c

$63.33

$63.33

$66.44

Total

(E.

PRICES

Electrolytic

$28.17

$28.17

$27.83

(New York)

Lead

Apr. 26
————Apr. 26
Apr. 26
;—
Apr. 26
Apr. 26
—
Apr. 26
A.pr. 26
——Apr. 26

—:——

at_„
at_,

Louis) at
at)—
(East St. Louis) at
(St.

tZinc

(delivered

Zinc

Aluminum

York)

(New

at

99.5% )

(primary pig,

tin

Straits

r.r

at

:

—

U.

S.

-

A

1

Baa

Railroad
<

■

Group

of

Industrials

9.300c

22.500c

22.500c

22.500c

24,000c

115.250c

109.250c

121.125c

MOODY'S
U.

YIELD

BOND

corporate

Average

87.32
91.48

89.23

J——L„Apr. 30

89.23

89.37

89.51

86.91

30
30
30

83.91

83.79

83.79

82. U

87.05

86.78

87.05

84.17

90.34

90.63

90.06

90.48

89 64

Apr.
Apr.
Apr.
Apr.

^

89.09

89.09

90.20

■;<

90.06

30

Apr. 30

:

30
Apr. 30
Apr., 30
—Apr. 30
Apr. 30
--ipi'-

—

Baa

Public

Utilities

Industrials

i

j.-

Group

—

.—

3.80

3.75

4.48

4.48

4.46

4.61

4.23

4.22

4.19

4.31

Orders

4.47

4.46

4.45

4.6,

4.87

4.88

4.88

5.01

4.63

4.65

4.63

.

(tons)--.

Production

(tons)

Percentage

of

Unfilled

orders

(tons)

PAINT AND

OIL,

15)49

—

activity

;

of period

at end

AVERAGE—100

of

4.41

4.38

Apr. 30

373.7

369.4

364.5

Apr. 20
-pr. 20
Apr. 20
Apr. 20

331,187

339,686

355,237

346,157
373,587

328,885

328,844

ACCOUNT

FOR

Total
Other

OF

sales

initiated

transactions

sales

Durable

Other

sales

Nondurable

'

„.

5

Apr.

5

Apr.

5

96

98

97

487,384

458,343

475,747

112.56

*111.88

All

sales

Total

2,380,880

1,895,530

1,693,630

1,870,800

3,031,910

2,399,300

2,194,510

2,307,350

.5
5

35,910

34,400

26,800

582,010

502,960

5

623,710

538,870

311,020
345,420

282,970

Apr.

Apr.

5

1,243.797

996,551

931,666

733,540

Apr.

5

173,300

114,870

112,630

174,200

Apr.

5
5

1,204.385

1,005,715

728,127

.747,221

1,377,685

1,120,585

840,757

921,421

.

41,700

309,770

members—

Apr.

5
5 *
5.

Apr.

5

Apr.
:
—

Odd-lot

sales

Number

Dollar

SPECIALISTS

AND

SECURITIES

—

(customers'

dealers

by

short

—

sales

Dollar value——Round-lot

sales
of

Number

Short

TOTAL

•

.

sales

Apr.
Apr.
_Apr.

„

1

sales-

ACCOUNT

roundrlot

—

STOCK

MEMBERS

3,952,751

4,793,887
866,030

4,167,275

5,033,305

-■

ON

THE

647,910

637,550

2,732,777

2,900,991

3,380,687

3,538,541

4,058,755

1,659,427

1,256,625

OF

$86,415,392

$59,969,352

-

Farm

All

commodities

♦Revised
sold

on

figure.

other

than

-—

—

—Apr. 23
Apr. 23

._

„Apr. 23

•

farm

1,679,464

1,447,064

17,680

12,400

27,113




40.8

39.1

39.5

$2.44

$2.43

$2.38

2.61

*2.61

2.56

2.21

2.20

2.16

$358,100,000

$318,900,000

$320,700,000

63,300,000

60,100,000

70,000,000

10,300,000

11,500,000

62,700,000

68,900,000

56,400,0 )0

153,000,000

133,200,000

163,700.000

346,700,000

149,200,000

345,400,000

$994,100,000

$741,800,000

$967,500,000

$5,195

$4,571

$4,891

—

PAYMENTS TO
INSTITUTE OF LIFE

BENEFIT
—

and

foods

11,300.000

.

—

—-

PURCHASES — INSTITUTE
INSURANCE — Month of March

LIFE

Total

—

—

1,667,064

1,419,951

$102,052,733

$76,915,272

$66,960,965

$91,429,539

Month

of

708.100

525_,980

386,890

266,200

338,550

CIRCULATION—TREASURY DEPT.
February (000's omitted)

of

As

—

i..

23,990

$57,710

'"$57,480

$56,180

34,030

*33,130

32,850

$34,300,000

$34,100,000

$32,900,000

vegetables,

grain and hay

Food

grains

fresh

—

Fruit

Oil-bearing

crops—

Meat

16,045,380

15,345,960

Savings

19,949,550

17,035,580

16,137,700

Insurance

94.1

99.6

*99.5

99 1

100.2

87.3

87.6

88.6

94.6

—Apr. 23

100.5

100.5

100.6

100.9

and

eggs

OF

153

234

234

223

267

228

229

258

258

252

151

1155

501

502
251

UNITED
*

132
543
254
255

248

-'254

281

294

155

157

147

274

264

240

$] ,168,024

$1,041,436

307

FINANCING
IN
NONFARM
S. — HOME LOAN BANK
of Jan.
(000's omitted):

U.

lending

STATES

BUREAU

$1,143,401

OF

institutions——~—

.

.

100,392

103,460

88:488

456,871

444,452

400,342

140,945

168,283

138,339

288.529

264.323

294,049

527,834

533,429

496,506

$2,657,972

$2,681,971

$2,459,160

$2,104,800

$1,011,000

$1,775,200

1,389,500

1,116,700

1,222,700

v

———-——

EXPORTS AND IMPORTS
CENSUS—Month of February

(000's omitted):

Zinc

—

and loan associations——
companies —__—
——
Banks and trust companies——
^—.
Mutual savings banks——-

'

{Prime Western

161

242

ESTATE

19,067,640

—Opr. 23

248

161

BOARD—Month

24,380,940

97.9

314

251

—

791,740

95.6

233

270

—

products'

990,200

*95.4

244

232
261

—

animals

881,9,10

1C0.6

—

'Tobacco

Dairy

242

238
241

—

—

—

Feed,

1,134.350
23,246,590

S9.9

$32,190

*24,760

240

products

farm

Poultry

99:9

*832,730
.

RECEIVED

Crops
—;
Commercial

527,986

99.8

$6,824

BY FARMERS — INDEX
NUMBER — U. S. DEPT. OF AGRICUL¬
TURE — 1910-1914—100—As of March 15:

504,20C
■'

$6,252

24,860

—"

1

Sales

Livestock

798,170

$7,233

MONEY IN

504.20C

525,980

708,100

621

1,312

$32,840

—

Nondurables

Potatoes

798,170

560

1,121

INVENTORIES & SALES—
February (millions of dollars):

Durables

15,954

2,049,836

595

1,443

Inventories-^-

1,671,785

■XAV;

1,655.831

tNumber.of orders- not reported since in roauction bf .Monthly Investment Planl
centers, where freight from East St. j-ouis exceeds one-half cent a pound.

delivered basis at

40.7

39.3

r

——

•—

Miscellaneous
_;

—

40.3

40.8

'

MANUFACTURERS'

U. S. DEPT. OF

—

foods

40.0

.

'

values

Individuals

products—

Processed

85.32

40.1

■\

Group

$99,185,23.

$59,955,906

2,067,516

'

commodities-—-,,

104.45

86.02

Cotton

•

All

$95.91

*106.23

86.85

'

goods

AREAS

———Apr.

—

—

$97.20

106.49

(000's omitted):

LABOR— (1957-59=100):

'

$97.84

Ordinary

REAL

——

—

Group—

327,210

431.1

INSURANCE

LIFE

1,742,029

1,238,550

(SHARES):

———

PRICES. NEW SERIES

—

dividends

Wool

sales——2_—-_:Ap:v
Other sales-.
Apr.

Commodity

221,253

243,620

■-——

-—

Surrender

N.

Short

WHOLESALE

::

goods
goods

Disability payments
Annuity payments

3,212,300

3,496,596

654,550

3,404.205

sales-

Total sales—

285,727

305,963

8,622,000
*

"

endowments

Matured'

Y. STOCK
STOCK TRANSACTIONS

SALES

ROUND-LOT

OF

Apr.

dealers—Number of shares

purchases by

ROUND-LOT

FOR

:

—

Apr.
_Apr.
Apr.
—Apr

—

shares—Total

EXCHANGE AND
Total

—

sales

Other
Round-lot

!

—

:

dealers—

by

311,991

goods

INSURANCE

All

Apr.
-Apr.

sales

other

Customers'

402.2

——

Death benefits

N.

Odd-lot purchases by dealers (customers' sales)
Number of orders—customers' total sales

Customers'

4C2.2

INSURANCE—Month of December:

PRICES

purchases)—t

1

value—

1

POLICYHOLDERS

Y. STOCK
COMMISSION

ON

EXCHANGE

shares

of

17,105.000

8,044.000

—

Nondurable goods-,

'

DEALERS

EXCHANGE

19,475,000

16,029,000

8,043,000

Total

•

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

19,469,000

15.995,000

;—

manufacturing—

All

222,110

393,740

516,190

681,130

Apr.

1

sales

19,474,000

Hourly earnings—

436,550

500,880

503,770

651,030

2,256,650

2,171,190

2,440.010

2,868,960

Apr.

Apr.
sales

Other

688,851

17,105,000

March:

Nondurable

Policy

5

Apr.

Short

826,578

16,029,000

STEEL

manufacturing 1——

Durable

111.39

/.

Apr.

.

account of

111,486

105,597

930,655

15,995,000

AND

•

Total

Apr.

:

r.;

Total round-lot transactions for

March 30—
omitted) Mar. 30
spindles in place

goods

Hours—

the floor-

on

106,364

—

Industrial

^

Short

March

OF COMMERCE):

manufacturing

All

floor-

the

off

2,166,675
9,429,537

MEM¬

;

initiated

730,962

1.652,484

13,351,376

(AMERI¬
STEEL CONSTRUC¬

OF

LABOR—Month of

351,417

87

SPECIALISTS
in which registered—

1

transactions

Total
Other

sales

659,128

1,686,645
12,432,734

HOURS—WEEKLY
ESTIMATE — U. S. DEPT. OF

AVERAGE

Durable

484,552

111.98

Apr.2 6

specialists in stocks

of

(tonnage)—estimated
(tonnage)—estimated

EARNINGS

FACTORY

BERS, EXCEPT ODD-LOT DEALERS AND
Transactions

$1,876,000

closed

Shipments

4.4

4.41

—

TRANSACTIONS

ROUND-LOT

$2,193,000

TION)—Month of March:

4.54

4.37

4.39

4.40

PRICE INDEX-

DRUG REPORTER

$2,260,000

666,182

STRUCTURAL

INSTITUTE

CAN

Contracts

4.85

"

ASSOCIATION:

PAPERBOARD

received

$80,878,000

30

FABRICATED

LIFE
NATIONAL

(DEPT.

Active spindle hours (000's
Active
spindle hours for

4.47

4.32

4.36

377.2

INDEX——

COMMODITY

MOODY'S

—

Group—-

$94,715,000

Spinning spindles in place on March 30

88.2.

V

3.80

-

-

—

Group

:

3.65

4.36

Railroad

$100,502,000

Weekly earnings—

AVERAGES:

Apr. 30

A*

15,612,000
9,998.000

:

Spinning spindles active on

90.10

90.09

89.71

93.23

Bonds—

Government

S.

month

30

COTTON SPINNING

'

89.37

—

DAILY

7,193,000

March

month of

spindles active as of March 30——

11.500c

22,530,000

6,957,000

consuming establishments as of March 30
public .Storage as of March 30
March

12.000c

19,017,000

OF

Cotton

10.300c

$22,421,000
7,803,000
25,044,000

BALES:

Stocks

11.500c

$26,971,000
11,918,000
26,-098.000

omitted)

Linters—Consumed

91.34

_

—2_

(000's

LINTERS—DEPARTMENT

COMMERCE—RUNNING

9.500c

92.79

!

Group

Group

-

28,525c

12.000c

26,148,000

YORK—

BOARD OF NEW

30.600c

11.500c

143

1,490

•'

OUTSTANDING—FED¬

PAPER

RESERVE

10.500c

10.300c

:

112

liabilities-

28.400c

12.000c

276

1,304

liabilities

30.600c

11.500c

228

126'n\

10.500c

12.000c

701

221-

13,473,000

service

31

142

629

1,296
$34,907,000

liabilities

AND

*^,.136

•

liabilities

March

_

Ol

595

129)

number

30.600c

10.300c

hOC

■

-v

28.450c

90.77

:

—.

Utilities

Public

228

10.500c

92.64

1—

—J—

199

225,

.

I_

.1-—„MJl
'

:

liabilities:

COTTON

$30.50

90.77

—-

-

-

-

$293,200,000

28.400c

89.78

Apr. 30
Apr. 30
-4.—Apr. 30

—

—

—

$274,500,000

-

BRADSTREET,

'

i

Aaa
Aa

$306,400,000

&

30.600c

115.000c

Apr. 30

Bonds

corporate

Average

367,502,000

OF

omitted)—

service

Consumed,

AVERAGES:

DAILY

PRICES

BOND

Government

351,636,000

—

GOVERNORS

liabilities

March
MOODY'S

381,111,000

9,COO

export

number.^

COMMERCIAL

In

at

refinery

Export refinery

39,259,000

number-.

Construction

QUOTATIONS):

J.

copper—

Domestic

Lead

M.

&

37,236,000

number

Manufacturing

In

METAL

36.349,000

43,051,000

number

Commercial

Total

$66.33

6.279c

Apr. 22
Apr. 22
—Apr. 22

•

31,34.9.000

OF

number

Construction

As

:—:

31,851,000

41,043,000

March:

of

Manufacturing

ERAL

PRICES:

227,756,000

33,249,000
11,000

FAILURES—DUN

INC.—Month

118

16,495,000

&

——Apr. 25

—

—

ton)

gross

(per

Apr. 27

:—_

INDUSTRIAL)

AND

lb.)

(per

(per

steel

Scrap

INC.

COMPOSITE

AGE

IRON

kwh. ")_—_■—

000

(COMMERCIAL

259,616,000

228,824,000

33,535,000
7,000

RESERVE SYSTEM—Month

(000's

Commercial

FAILURES

262,084,000

226.420,000

(barrels)
(barrels)—

output

i

Wholesale

106

121

259,692,000

INSTITUTE—Month

oil output

(barrels)

Retail
104

323,900

11,146,700

product imports (barrels)
Indicated consumption domestic and

of

354,000

367,300

12,282,900

Refined

THE FEDERAL

*9,000,000

11,470,600

357,500

12,269,400

—

crude

gasoline

569,493

337,000

12,650,200

—_

production (barrels of 42 gal¬

514,109

9,005,000

INSTITUTE:

ELECTRIC

EDISON

Ago

sales (M therms)

output (barrels)
oil imports (barrels)

Crude

87,156,000

8,759,000

INDEX—FEDERAL RESERVE
SYSTEM—1957-59 AVERAGE—100—.
Apr. 20

Year

Month

12,626,900

(M

Benzol

BANK

;'. 511.110

SALES

STORE

DEPARTMENT

lons
Natural

23,594,000

'

therms)
therms)

(M

mixed gas

PETROLEUM

Domestic

Retail

Apr.
Apr.
Apr.
—.———Apr.

—

Previous

Month

of January:

Total domestic

Wholesale

———Apr. 25

planning by ownership

advance

.

Latest

February:

sales

gas

AMERICAN

ENGINEERING

Private
Public

•

(000's omitted):

SERIES

NEWS-RECORD—NEW

—

of

sales

gas

BUSINESS

—1~.—Apr. 20
——Apr. 20

."«••'Bituminous coal and lignite (tons)—:
Pennsylvania
anthracite .(tons)-—-—
CONSTRUCTION

Apr. 20
cars)—Apr.,20

J

•

4

.

.

7i387,460

7,461,160

7,460,910

7,467,610
8,371,000

13,029,000

—

'('•Revenue

month

of that date:

are as

ASSOCIATION—

GAS

Manufact'd &

of
-—Apr. 19
Apr. 19
Gasoline output (bbls.)
—
——Apr. 19
Kerosene
output
(bbls.)—.————
Apr. 19
Distillate fuel oil
output
(bbls.)——.—_—^
—'Apr, 19
Residual fuel oil output (bbls.)
1}
Apr. 19
Stocks at refineries, bulk terminals,, in transit, in pipe lines
Finished
gasoline
(bbls.) at—
——•—:
l_Apr., 19
Kerosene (bbls.)
at—'
:
'——Apr. 19
Distillate fuel oil
(bbls.) at—.:———
—
Apr. 19
Residual fuel oil (bbls.) at—
Apr. 19
Unfinished oils
(bbls.)
at—
-1
Apr. 19

Total

AMERICAN

either for the

are

of quotations,

Ago

1,957,000

128.1

135.3

136.8

cases

Year

Ago

Natural

INSTITUTE:
Crude oil and condensate output—daily average
42 gallons each)——
—
Crude runs to stills—daily average (bbls.)

in

or,

37

production and other figures for the

cover

Dates shown in first column

that date,

on

PETROLEUM

AMERICAN

COAL

month ended

For

—Apr. 27

—

—

—

month available.

2,387,000

2,521,000

2,548,000

Apr. 27

:

or

Month

Week

Week

INSTITUTE:

STEEL

AND

and castings, (net tons)
production based on average

ingots

or

Previous

Latest

Steel

following statistical tabulations

latest week

Business Activity
AMERICAN

(1829)

38

(1830)

The Commercial and Financial
Chronicle

IBA Municipal Conference Program
:

Official

details

of

the

second

industry

Chicago, June
The

second

Municipal Conference

meeting

to

be

held

in

.

Thursday, May 2, 1963

.

.

Complete Sale of Puerto Rico Bonds

4

19-21.
sponsored

Bankers Association of America will be held

by the
June

on

Investment
19-21

at the

Pick-Congress Hotel in Chicago.
The Conference will be devoted completely to subjects of con¬

f

cern

to

municipal bond underwriters and salesmen. The Conference

will begin with

reception for all registrants

a

Wednesday, June
wilf be held
sessions

on the evening of
Morning, luncheon, and afternoon sessions

19.

Thursday,

on

June

Friday, June 21.

on

terned after the

one

held in 1962

425;,

Of

20,

and

morning and

luncheon

This year's Conference will be pat¬
:

which;

'v

capacity registration

saw a
*■

•

.

'

'

,

.

■\'

'

-

'

,

The first session will, be devoted to
problems relating to Origi¬
nation and Issuance of Municipal Securities. The
deal with Legal

Bond Ratings.

sub-topics willAspects, General Obligations, Revenue Bonds, and
Amyas Ames, President of the IBA; and James J.

Saxon, Comptroller of the Currency, will be the luncheon speakers.
The

afternoon

session

Distribution and

will

deal

with

the

Internal

rSub-topics

.Secondary Market,

Organization,

include Firm Pol¬

icy, Automation of> Paying Agencies, SSites Techniques, Employment
Compensation and Training -of Salesmen, Secondary Market, and
Trading Practices.
y

ject matter of the third session to be held
discussion will

on

Friday.

the

Martin

J.

McCallen,

Cashier,

Smith Inc., who recently

&

ner

Vice-President,

Government Development Bank for Puerto
Rico;
Fernando Torrent, Assistant
Executive Director

of

White, Weld & Co., acting on behalf of a bank¬
ing group including Blyth & Co., Inc.; Glore,
Forgan & Co., and Merrill Lynch, Pierce, Fen-

include Federal Financing of
Municipalities, Reg-/,

luncheon

from

sub¬

Topics of

istered vs. Coupon Bonds, and
Management and Members' Obli¬
gations in Syndicates. Walter Trohan of the Chicago Tribune will
be

000,000 bonds of the Authority.
Left to right: David
Larson,

City

Bank

Current Developments in Municipal Finance will be the

->

Rafael V. Urrutia, Executive Director of the
Puerto Rico Water Resources
Authority accepts
check at the offices of the First National

of the

Authority; E. F. Mitchell, Vice-President,
Urrutia; Mr. Mc¬

First National City
Bank; Mr.
Callen and Edwardo

Lube, Assistant Executive

marketed $15,-

of the

Authority.

«

speaker.

WEDNESDAY, JUNE 19, 1963
3:00-7:00 p.m.—Registration
5:00-7:00

at The Pick-Congress Hotel.

p.m.—Rendezvous Room—Get-Together.

TAX-EXEMPT BOND MARKET

THURSDAY, JUNE 20, 1963
8:15-9:30 a.m.—Registration.
8:15-9:15 a.m.—"Kal'fee

9:30-12:00
and

•

(Gold

-

V

;

Room)—Problems

y

Relating to

Issuance of Municipal Securities.

ful

f

•

at

Origination

Moderator:

Russell

M.

bidder

2.89%

a

the

for

same

the

was

Bay County bonds at
interest

(b)

-.

'.."7

Legal—Russell Mclnnes, Partner, Wood,
King, Dawson &
Logan, New York, N. Y. ' '
■
; :
v..

was

General Obligations—J. M. Maxwell,
Vice-President, The
Company, Chicago, 111.
•
Revenue Bonds—William F.
Morgan,

public.

cost.

No

released

apparently

bonds

cost

and

Other

winning

2.69% net

a

the

bonds

reoffered

were

to

the

The

Vice-President, Blyth

.

/

,

.

.%v

—Discussion Periods—

%% 77!'
(Great Hall)—Toastmaster: George B.
IBA Municipal Securities Committee; Re¬

Wendt, Chairman,

-

2:30-5:00 p.m.
r'

and

(Gold

Markets.

(New York, N. Y.

; (a)

Bank

New

C.

Company,

Techniques; Francis

R.

Schanck,

.

-

'

and

tive
New

■

>

yield

York, N. Y.

\

Position,

and

j

the

W.

Neal

&

the

t

Fulkerson,

Jr.,

(Great

Vice-President,
(2)

bonds

initial

A.

Hall)—Toastmaster:

was

for

Corp.
two

050,000
bonds.

of

G.

For

Walter

19.99

at

sold

were

order

day

of

associates.

a

3.2236%.

for

this

interest

Barney

The

Re¬

bonds,

designated

bid

net

revenue

$9,350,000

cost

Smith,

best

Lauderdale,

interest

from

the

Fort

group

the

Discussion.




;

The

issue,

cost,

a

came

Co.

and

bidding

for

the

bid,

a

3.484%

4

i

.'1 3

V

I

,

v,

•

1

1

y*-i>

•

g ♦

College)

Nico-

was

re¬

1.80%

in

demand

:cost,

has

net

pared

revenue

second

cost,
&

a

sub¬

3.252%©

net

$14,000,000

Utilities
and

Com¬

Electric

bonds.

3.263%©

bid,

Other

major
&

Co.,

John

B.

J.

Nuveen

&

Co.,
Blair
&
Co.,
Inc.,
Ira
Haupt & Co., R. S. Dickson & Co.,
Hayden, Stone & Co., Second Dis¬
trict
&

Securities

Barr

net

in¬

3.49%

which, again,

in

Santa

awarded

yield from

1.80%

balance of $5,095,000
account.

1965

to

to

$2,660,000. The
ries

general

obli¬

headed

National

jointly

by

City

Bank,
Inc. and

Halsey,

Stuart

United

California

2.8322%

net interest cost bid. The

a

&

bid,

this

sold

a

competitive bidding.
syndicate headed jointly by

Co.,

Bank

2.85%

on

net

a

in¬

Co., and Smith, Barney
the

dollar
set
a

successful

price

of

The

coupons.

dollar

from

price

the

Kuhn,

Western

winning

Loeb

Bank

&

.and

Co.,
Trust

are

3%%' bonds

Smithers

&

Co., First

Co.,
of

A.

G.

Michigan

headed

bonds

1987

to

maturing

3.35%©.

term

priced at
term

loan,
due

104.

3%%

The

2012

The

bonds

are

third
due

block

National

is coterminous with
placer

Island,

This

sec¬

of

dollar

2000

dollar priced at 105.

Rhode

to

The

$39,125,000

Corp., National State Bank, New¬
ark, Fahnestock & Co., Industrial
of

came

jointly

priced

are

dollar priced at 100.

First

Oregon,

other bid,

first term phase of the
loan, $42,015,000 of 3V2% bonds due 2003
ond

df

a

pre¬

S. Smithers & Co., and
Solomon Brothers & Hutzler. The

Co.,
R4
W., Presspjich
&
Co.,
Paine, Webber, Jacksop & Curtis,
Bank

at

for

by, F.

2.30%©

the

& Co.,

100.8869,

account

from

of

only

of

The

Blyth

bidder

101.1149

vield

members

Bank

is¬

$115,000,000

at

to

&

yield.

Sale

County
Water
Agency,
California serial and term

1968

S.

4.30%

week,

from

National

car¬

Placer

$31,435,000 serial

are

the

totals

maturity

Major

associates.

group

account

1993

terest cost, was made by the Bank
of America N. T. &
S. A. and

First

1.80%

1993,

Wednesday, the largest
of

sue

was

Other

from

in

&

one-tenth of 1 % coupon and

a

is reoffered at

&

runner-up

yield

3.40%©

balance in

present

to

First

Loeb"- &

& Co., Coffin
Eldredge & Co.

Reoffered
in

gation Highway (1964-1982) bonds
the

winning

Kuhn,

bonds,

County, California

$8,000,000

group

of the

include

Co. and Roosevelt

to

Clara

the

members

Brothers

On
a

cost,

Michigan Corp., Hayden, Stone
Co., Adams, McEntee & Co.,

Cross,

3.30%,

interest

%

associates.

Week's

Reoffered

net

:

com¬

second

Smith Inc., Salomon Brothers
Hutzler, Paine, Webber, Jack¬
son &
Curtis, Francis I. duPont &
Co., A. C. Allyn & Co., Inc., First

the

of

3.272%

a

this*

&

&

include

bid.

and

8c

of

members

(1965-1994)

from Wertheim & Co.

came

Burr and

account

Ingen

note was

Co., Merrill Lynch, Pierce, Fenner

The

syndicate.

best

cost,

3.29%©

a

account

net interest

made by the Goodbody

was

Co.

Co., Inc.

(1965-1992)

bid,

was

balance

favorably with the

which

-by

the

interest

Other

anaged

a

revenue

submitted

bal¬

present

for

-

business

present

to

and

bonds. The account led
by Phelps,
Fenn & Co. and Lehman
Brothers

$3,900,000.,

best bid,

Water

Becker

close with the

cost, just under .the

m

Florida

F.

terest

$3,175,000.

Reception

Orlando,

1992 was also

net interest cost bid

r

initial

mission,

$6,700,000 issue due serially 1964winning

about

good
the

Tuesday's final sale of

in 1992 for various

with the

the

interest

net

&

very

from

HalseyStuart; &

with

totaling $16,-

winning

with

3.00%o

the State of New York
(Skidmore

Stifel,

offering

account

mitted

to

issues

the

again,

to

The Robinson-

&

Inc.

and

good

remains

submitted

once

Co.,

reoffered

were

$5,000,000 Dormitory Authority of

and

yield

National

Co.,

in group about

The

all

•

2:30 p.m.—Open

Co.,

Third

1.65%

done

period

marked

busy

a

(1964-1986)

3.224%

Becker

Russell M.

and

at 3.875%

due

was

funding

runner-up

View?
,

Chairman,

Speaker:

3.65%

Busy Tuesday

Bankers

Members'

Municipal Conference Committee*
Trohan, Chief, Washington
Bureau'
Chicago Tribune Press Service, Inc.
'
Guest

to
1992

Florida Water and Sewer

Execu¬

Responsibilities—(1) Managers'

Vice-President,

Ergood,

bids

:

Co., Incorporated, Chicago, 111.

12:45-2:15 p.m.—Luncheon

2%

term

reoffered

were

bonds in

&

Rhoades

Co.

to

successful

v

.

v.;

curities

America, Washington, D. C.

Trust Company, New York, N,
Y.;
point, Elmer G. Hassman,

Moore,

Arthurs,

ding. The group managed jointly
by Kuhn, Loeb & Co., B. J. Van
Ingen & Co. and Equitable Se¬

United States Trust Co. of
New York

Members'

Co.,

four; issues of importance totaling
$45,000,000 selling at public bid¬

Vice-President, The

.

Dillon,

Stuart^ &

Lynch,

from

Tuesday

Coupon Bonds, Russell H. Johnson

Vice-President,

(c) Managers'
,

vs.

&

sold;

(a) Federal Financing of
Municipalities, Gordon L. Calvert,
Municipal Director and Assistant General
Counsel, Invest¬
Bankers Association of

&

combined

coupons

this

Co.'and Cunningham, Schmertz

during

Room)—Current Developments in
Municipal

Registered

Halsey,

&

Witter

from

and

of

Eastman

and;the account

8:15-9:15 a.m.—"Kaffee
Klatsch".
9:30-12:00 noon (Gold

ment

Loeb,

to 3.50%

been

Co.

and

Trading

Corporation. Chicago, 111,

1964

ance

&

to

Kenny, Prop., J. J. Kenny Co., New York, N. Y.

First Boston

Dean

1999.

4.00%, All of the bonds

Moderator: Arthur E.
Kirtley,

The

term

&

the term

FRIDAY, JUNE 21, 1963

(b)

Co.,

the
Nu¬

bonds

yield

Co., Blair & Co., Inc.,

Co.,

leased

serial

Securities & Co., Goldman,

—Discussion Periods—

Financing.

$5,-

two

members

The serial bonds

Function,

.

and

&

Van

Practices—(1) Dealer
Function, Henry Milner, Vice-President, R. S. Dickson
&
Company, Inc., New York, N. Y.;
(2) Broker
John J.

<

Markets

M.

Co., Thomas & Co., A. E. MasterT

Luby,'

Secondary

of

Lestrange & Co., Blair & Co., Inc.,
Hornblower & Weeks, Stroud &

Manager, Municipal Department, Paine,
Webber,.Jackson
& Curtis, New
York, N. Y.
(c)

1992

Leonard

Jr., Partner, Bacon, Whipple &
Co., Chicago, 111.; James
F. Reilly,
Partner, Goodbody & Co., New York, N.
Y.; (2)
Employment, Compensation and Training,
Joseph M.

: *

associates,

and

Co., John Nuveen

Internal

Sales

Singer,

Co., Inc., Ira Haupt & Co., Kidder,
Peabcdy & Co.; Kuhn, Loeb &

,

Distribution—(1)

&

of

Sani¬

revenue

bonds

major

Sachs <8c

Patterson,'

York-Trust

Carl

members

include John

Good

Organization—(1) Firm Policy, John W. de Milhau, Senior Vice-President, The Chase: Manhattan
Bank,
New York, N. Y.; (2) Automation of
Paying Agencies,*
John W. Agnew,
Vice-President, The First National Bank
of Boston,
Boston, Mass.
•

•(b)

due

Union

Donald

Sewer '

to

issue

an

account .include

Organization, Distribution

Moderator:

!'Vice-President, Chemical

Monday,

Other

,

Room)—Internal

Secondary

Scribner and

&

issues

.«

.

Deane

(1963-1980)

marks: Amyas Ames,
President, Investment Bankers Associa; tion of America; Guest Speaker: James J. Saxon, Comptroller
of the Currency.
.>
; • ■.

■

Township

negotiation,

22c,00o

12:30-2:00 p.m.—Luncheon

Co.,

Estabrook

laus

Elizabeth

through

latej

&

veen

Weeden

tary Authority, Pennsylvania sold,

■% & Co., Inc., N. Y.
*
:
(d) Bond Ratings—David Ellinwood,
Vice-President, Moody's
Investors Service, New York, N. Y.
r
'

major

and

Nashville.

The

Smith, Barney &

group

Humphrey

Northern Trust

(c)

the

Bank,

Co. account.

high for the

reoffering scale

and

not

from

came

interest

net

group

Ergood, Jr., Vice-President, Stroud & Company, Inc., Philadel.

6

Osceola

phia, Pa.
(a)

;

noon

Continued from page

'

Klatsch."

Providence,

of
are

district, organized in 1957,
County

Volume

and

of

of 1,400 square

an area

covers

Francisco.

San

northeast

miles

100

about

miles

Number 6260

197

1.60%

As

we

for

branches

certain

and

River

domestic

irrigation,

commercial purposes and for

and

generation of electric energy. In¬
volved

two

are

diversion

and five

storage

dams

four

and

power

The. long

from

solelyunder

will

bonds

These

be

•

payable

accruing

revenues

the life

contract through

a

of the bonds with Pacific Gas and

Electric which will take all of the
electric power

generated. This for¬

mat is similar to the

Tri-Dam

nanced

previously fi¬

Project and the

Oroville-Wyandotte

" Irrigation

Project. Due to time differences,
is

balance

no

presently available
that

estimated

but

it

is

the

bonds

of

most

have been spoken for.

The three term issues are trading

better

as

The group

led by Eastman Dil¬

Halsey,

and

Co.

&

Stuart

Inc.

submitted the best bid of a 2.917%

cost

interest

net

sion

Commis¬
bonds. Second

Roads

State

Maryland

$17,500,000

for

(1964^1978)

offering

best bid for these bonds,
a

2.942%

from

Sons

Ripley

jointly

and

of

ket.

pattern.

Weeks and Reynolds &

yield

scaled to

is

issue

The

in

proj¬

convincing

a

below

increases,

these "closed end "obligations, fur¬

flexibility
better fitted

protected by the
charges, seem

inflationary

to face the inexorable

forces than do other fixed income

obligations. Their tax freedom of
course
adds
to
their
defensive

Anachronistically,, our
heavy tax structure renders

by

bonds

free
to

0.5%

ahead of the volume for the

These

transfer of

the

capital

to

to

enough
some

account

in¬

and we

are

told

that this transference is

not

now

uncommon.

extent becomes
tal

flects

than 400

The

,

the

on

report

handled

tonnage

at

truck terminals

carriers

of

The

terminal-

showed
a

19

Terminals
York

registered

trucking

level.

New

Worth,

gains

of

13.2

respectively,

while

five

points

centers

at

decreases

reflected

de¬

centers,

tonnage

10.0%,

last

tonnage

Dallas-Ft.

10%

of

or

more.

Compared with the immediately

metropolitan

16

week,

increased

registered

ton¬

16 areas showed de¬
terminal
cities,

while

Two

creases.

Oklahoma

City

showed

Oregon,

Portland,

and

from

change

no

from its

Falls

5.7%

the

in

the week

ended

insisted

has

FTC

the

passing-the-buck

on

...

smack

caveat

"out-date d"

of

by 8.6%.

emptor!

■'

Following

Unfortunately, past inquiry by
forces

that

under

FTC

action

make

at best be so

would

cumbersome

and

delayed

In

ineffective.

it

routine,

existing

its

-

to

Commission

has

com¬

a

this

spelled

William

A.

Titus, Partner in the

investment banking firm of Wer-

of

theim

&

members

New

Company,

York,

of the New York

Stock

advance

such

decisions

cases

after

have

Institute.

developed, in an inves¬

been

tigation

according

facts

pertinent

believe

We

it.

by

kwh.

the

any

other action in such a matter

1962

within

the

ministered

not

of

purview

laws

ad¬

Exchange' Commission. The Com¬
mission

this policy with
preventing possible

follows

view

a ;

of

conflict

or

duplication

relation

in

have

ivhich

duties,

ing

as

specific

of

of

and investment
*

*

Exchange, has been elected to the
Board

of

Directors

Products

man

based fastener

securities
advisers."

any

event,

as

cussion, realistically the investor's
flexible

protection

lies

in

week,

Bow¬

specialist and parts

failures

Goodbody Names

Failures

ended

Stock

Exchange,

pointment
as

of

the

announce

John

S.

&

York

the

ap¬

Clapp, Jr.

335

not

312

in

the

However,

return

of 360

occurring

4%
in

of

to

the

set

on

in

1939

came

to

when
326

in

the

com¬

last year. Some

fewer businesses

Failures
*




to

Inc.

level

parable week

been

High Street.
with

many years.

Mr. Clapp has

Goodbody

&

Co.

for

with

the
the

failed

week

the

298

pre-war

similar

toll

week.

liabilities

under

short

earlier

but

fell

this

size

registered in

of

to

in

Mountain

the

along with the Pacific
were

to 59 from

up

accounted for the week's rise

42,

other regions,

in failures. In most

held

at 77

relatively

stood

against 73 and the South

as

Atlantic

35

at

were

than

had

four

lumber,

plaints,

outdoor

of

hardware

equipment.

"

.

dollar volume

total

in

tail

trade

the

Wednesday

the

ranged from
last

and

week

9 to 5%

collected by

Inc.

varied

levels

Again

estimates
1962

following percent¬

Atlantic —14 to —10;

ages: South

Atlantic and Pacific

Middle

to —8; West South Central

—12

—

9<,j;o

to

North

Central

to

mixed;

—3;

New

England

Mountain

—6

—2;

to

+7.

to

+3

—7

while
Sales

Department

Stay

Week in

in

Department

year.

Price Index
Since

the

Row

a

store

sales

as

Federal; Reserve

dex

again

gain

wheat advanc¬

Store

7% Above Last

Year's Rate for Second

22

36

January
With sugar and

re¬

Brad¬

East

last

Highest

Edges

&

comparable

the

by

in

than

spot

Dun

country-wide basis
Wholesale Commodity

lower

to

Regional

from

re¬

week

statement

according

year,

of

ended

—4;

and

the comparable week of

added

Central —8

from

soaring

Fur¬

weather

North

more.

previous week

sales

momentum to the call for

<

the

their

auto

Steam ahead.

Nationwide

reported,

were

by

West

ago

year

a

staging

from

—5;

regions had fewer businesses

failing

of

some

furniture

warm >

in"

more,

34.

against

as

Year-to-year trends
five

steady

Atlantic total

—the Middle

Board's

reported

7%

of

in¬

the

for

compared

20,

April

a

overall

an

(adjusted)

,

ended

week

on

taken from

ing in wholesale cost, the general

with

wholesale

the

second

was

the ninth consecutive weekly

returned
the

commodity price
this

269.66,

to

Monday

level

highest point since late Janu¬

reported
of

heels

the

followed

dip to 268.91

a

istered

April

on

exceeded

last

269.56 reg¬

which

15,

on

also

In

in

four-week

the

adjusted

a

1962,

for
and

row,

period ended

the

over

-i-5%

period in

1962

corresponding

.

for the

country's

leading department store centers.

level since the lat¬

any

Daily Wholesale Commod¬

edged to 269.66 on
Monday, April 29, and pushed well
ahead of its month-ago 267.70 al¬
Index

to

According
sales

in

-f-3%
able

New

ended

week

Federal

the

department

System,

serve

The

period in

week

April 20, 1963, sales gained

part of January this year.

ter

like

the

gain over 1962.

& Bradstreet,

Dun

increase

This

Inc.

City for

York

April

adjusted

Re¬
store

over

the

advanced

20,

the compar¬

week.

year-ago

though continuing down from the

of 271.71

level

1962

comparable

,

So

10-Month Low

at

Wholesale

compiled

on

level

lowest

Dun

by

remained

Price

Food

Index,

Bradstreet,

&

April 30 at $5.74, the
since

6

June

a

creased

year

Continuing below "last year

it has in every week so far in

1963, the index fell 1.9% short of
$5.85 chalked up on the cor¬

a

114

Sugar and cocoa led the list of
sale

higher at whole¬

registered for

cottonseed

beef,
These

price
offset

were

other

oil

hogs.

and

declines

items:

also

wheat, corn,

increases,
by

food

gains

while

markets,

to

1

however,
in eight

rye,

raisins,

over

in¬

that

for corresponding period

A rpajor part of the

days Cleveland,

Ohio, newspaper
during

occurred

strikes

riod. Cleveland's

recorded

sales
New

1%
in

volume

days New York City and 129

York

a

minus

City sales

the

for

this

pe¬

department store
1%

put

1-April 20

Jan

and

plus

a

span

comparison to the similar pe¬
in

One

were

(Jan.

(adjusted)

ago.

year

riod

responding day of 1962.

foodstuffs quoted

4%

rung up.

For the second successive week,
the

year

retail dollar

districts'
Wholesale Food Price Index
Holds

this

far

April 20) the 12 department store

for the similar day.

1962.
can

speculate

only

as

to

store sales might
have been in the absence of the

what department

strike. The data merely show

cities

two

the

that

performed signifi¬

cantly below all districts with the

of

exception

Philadelphia

the

non-struck

area.

hams, bellies, lard, milk, eggs and
potatoes.

than

$100,000 resiibged to 270 from 206
a

thermore,

and

taken up by

comebacks

continuing to

street,

the

Manager of their Boston office

at 125
From
a
letter
signed by Daniel J.
Murphy, Director, Bureau of Deceptive
Practices,
Federal
Trade
Commission,
Washington, July 14, 1961.

from

April 4, nor did they quite reach

New

jumped

in the preceding week
toll

States which

as-

week, reported Dun

did

States

East

of fashion
wear,

sagged

Easteh slump >artd

its

down- ;

Interest

was

and

moderate

two areas,

ago.

9.6%.

April 25 from 255 in

peak

appliances

ports

over

Rebound

rebounded

casualties

Mas s.—Goodbody
of

increase

sharply for two

Bradstreet,

year's

.Boston Manager
members

comparable

week of

the preceding

the

in

sales

in men's. However,

States climbed to 20 from 6. These

weeks, commercial and industrial
week

Co.,

previous

kwh. above the
the

After dropping

&

the

and

404,000,000

the

an

or

ago

year

was

16,191,000,000 kwh.,
of

than

The

75 from 41

Edison Electric
was

than

output

,

Two-Week Slide

the

preciated from the foregoing dis¬
surest

The

*

should be ap¬

the

more

Business

Cleveland-

supplier to the vehicle markets.

BOSTON,
In

of

Co.,

effort

statutory

to

Output

similar

the

toll

Central

North

kwh.,

.

agencies

in the area of regulat¬

activities

the

dealers

other

to

the
Wm. A. Titus

come

Securities and

the

by

determined

does

matter

the

27,

16,495,000,000

1,441,000,000

total

until it had first been
that

and

for investigation or take

matter

April

at

week's total of

Commission would not enter such
a

light

industry for the week

Saturday,

estimated

actual

in

only

the

ended

making

respect to its jurisdiction,

in

reported

business

The

ity

energy

electric

the

by

and power

advisory opinions with

or

1962

234,753
248,756
249,643

electric

of

amount

distributed

give

not

does

1963

234,449
232,766
238,848

Over Last Year's Level

out

casualties

retail

Only

considerably below the

week from the peak of

Electric Output Rises to 9.6%

The

Commission

The

the

Apr. 21,

Apr. 13,

1963

orders

in

/

222,284
227,353
229,022

Shipments
New

with last year in con¬

even

ary,

for

feet

board

indicated:

Production

follows:

as

■

figures

the

are

Apr. 20,

the

space,0'

this

munication

to

as

weeks

Named Director

conclusion

the

to

us

orders

new

and shipments fell

dropped 8.3%

thousands

us

to

5.7%;

declined

put

the SEC.

to

in

according

Compared with 1962 levels, out¬

his education—howsoever this may

5

far

thus

off—but

leave

234,753,000

week

year-ago

reports from regional associations.

OBSERVATIONS
Continued from page

to

compared

the

tolls freld

in

children's

the week's slack

1962 week.

April 20 totaled 222,284,000 board
feet

Service

22.

substantially

1962 level, and

number

in

production

States in

from

34

sharpest

apparel

.

in

was

merchandise.

women's

.

Production

Lumber

commercial

and

gift

Seventy-four Canadian failures,

Below 1962 Week

United

42

increased

facturing.

the previous week.
Lumber

35,

saling to 42 from 37, construction
to

The

accessories,

-

when

year

shopping

occurred

from

the

corresponding

Easter

slide

in

in

volume

last

1962

the

while mild increases lifted whole¬

service

the

retailing,
119,

total

week

In

45

mortality

below

surge.

to-

from

lagged

final

manufacturing

50

Understandably,

and

from

casualties

preceding

than

purchases

Wednesday April 24.

industry

141

to

retail

all

groups.

bulged

remained

1962

.

two

at

and

and

the

in

hit

calendar

struction, wholesaling, and manu¬

reflecting

points
from

creases

com¬

succumbed

to

localities,

at 15

the

above

com¬

for

ing

week ended

although they re¬

about

freight

increased
ago

year

re¬

>

survey

Easter

The usual post-holiday slacken¬

of

excess

more

of

general

throughout the country.

This to some

gain.

toll

by the ATA De¬

Economics.

port

gratuitous capi¬

a

-

in

concerns

week

trade

partment of Research and Trans¬

nage,

large

be

can

i

based

are

last

of 34 metropolitan

survey

conducted

areas

held

individuals. The net

wealthy

findings

weekly

losses

slightly

More

pre¬

vious week of this year.

Lull in Consumer Buying After

week's

parable year-earlier toll of 37.

corres¬

nounced. Truck tonnage was

growth securi¬

when

the

the

an¬

areas

degree,

some

return

as

in

volume

mained

0.7%

was

Associations

qualities.
top

20

the

sale level.

year.

upswing, large casualties

the prior week

in

tonnage

April

Trucking

with

against the general market.

of toll

with

39

trend of food prices at the whole¬

$100,000 dipped to 42 from 49 in

ponding week of 1962, the Ameri¬

from

density

the

are

improve

Fraction¬

Falters

truck

ended

week

ther

over-all

1961.

Intercity
week

most of these issues will

traffic

corresponding week last

Contrasting

ally Below Year-Ago Week

coming summer and it seems safe
to
assume
that the market for

As

15

corresponding

the

Tonnage

mon

generally

Revenues

come

Co.

of these

likely to break records during the

warrant

blower &

im¬

issues

of these

most

continues

ects

Salomon Brothers &

Company,
Higginson & Company, Horn-

is

average

an

Most

for

revenues

ties

&

Index

gradual improvement in

The

Devine & Co., White,

Hallgarten

the

week

highs but also is the general mar¬

include C. J.

Lee

at

still quoted below their recent

are

Weld & Co.,

Hutzler,

out

averaged

reflecting

point.

a

Harriman

account

Index

provement of about three-eighths

tax

of the winning

again this week.

The Commercial and

This

3.421%

Alex.

Inc.; Other major

Co.,

&

members

came

Co.,

&

Barney

&

Brown

headed

account

the

Smith,

by

interest cost,

net

other

and

for 23 standard so-called revenue

3.442%.

the

involving
Truck

toll

authority issues did

issues

in

58

in

can

slight premiums.

lon, Union Securities & Company

and

week

to

Chronicle's yield

Financial

Continued from page
ago

road,

utility

group

a

A week ago,

as

at

and

revenue

toll

term

public

bridge,

bond

plants.

balance of

a

(1831)

The State of TRADE and INDUSTRY

Show Strength

of the Middle

of the American River, the

Rubicon

press"

Dollar Bonds Continue
.

Fork

to

go

is designed to conserve

control waters

and

initial

and

$9,300,000 remains in group.

struction of'the Middle Fork Proj¬
ect, which

2.95%

to

sales have amounted to $6,000,000.

this issue will finance con¬

from

The Commercial and Financial Chronicle

.

from

proceeds

The

.

.

The

Joins H. Hentz & Co.

Dun

Wholesale
resents
per

&

Bradstreet,

Food

Price Index rep¬

BOSTON, Mass.

sum

total of the price

man

the

pound

Of

31

raw

foodstuffs

and meat in general use.
a

cost-of-living

function

"Inc.

is

to

index.
show

the

It is not

Its

has

H., Hentz &
He

was

chief

general

Marache

—

become

David Troderaffiliated

with

Co., 585 Boylston St.

formerly with Granbery,
& Co.

40

The Commercial and Financial Chronicle

(1832)

.

.

WASHINGTON AND YOU

.

Thursday, May 2, 1963

COMING

behind-the-scenes interpretations

EVENTS

A

from the nation's capital

IN

under

or

cost of storing these products, to-

machinery and petroleum products

gether with insurance, transporta-

dealers,

tion,

banks,

housewives

affected

and

farmers

be

others' will

and

either

directly

interest

Perhaps

of the

one

May
;

a new

inception of the regulated agricul-A
tural
1

""

era.

The

outcome

whether

individual
off

freedom

government

whether

will

Former

Assistant

that

tends

demands
recent

for

free

in

government

In

in

publication,
agriculture

officer. It's true

Here

in

the

nation's

Capital,
the Kennedy Administration and
good many Democrats in

a

out beating

gress mre

for

the proposed

of wheat from

49,500,000

the

Con-

drums

reduced acreage

55,000,000

acres

to

vote,"

said
that

Cabinet

the

Depart-

is

for

'yes' vote, the

a

answer

no."
Allen

J.

Ellender

of

for

wheat plan.

acceptance

aa,AA-Ay

the

of

a/ay.-MA.

The Taxpayers' Stake

.

Taxpayers all
will

have

stake

in

Conflicting Views
The

the

minimum
ment of

national

55,000,000

a

so-called

wheat

lished. It remained in effect until
the

Democratic

in

gress

1962

Food

new

When

late

and

55,000,000

enough

'

1938

yield

to

meet

the

an

14 bushels.

in

the

0f

produce
domestic

•

wheat

average

just "a little

was

13' bushels

the

Act.

acres

would

export needs.

In

in

national

promulgated

plantings

about

Con-

Agriculture

minimum

was

1930s,

wheat

it

removed

and

the

acreage

controlled

than

more

In 1939 it

acre.

was

usually

tive stand
a

Farm

takes

Bureau,

lot at stake

in

the

many

are

the amount of wheat in

our

try has almost doubled.
market

lagged
there

demand,

far
is

for

behind.
a

coun-

Yet

the

wheat

As

serious

has

result

a

oversupply

tration'a efforts to expand supply
management to other commodities.

Nevertheless, the Bureaus contentions are being challenged in
some quarters, Some of the pro-

the

envy,

of the world and the Soviet Union
in
particular,
has
resulted
in
and

more

the

farm

the

complexities

programs.

Department

have

been

billion

a

about

third

from

year

The

year.

is

more

of

Budgets

of

$5

to

estimate for fiscal
$6.5

billion.

these

About

expenditures

of

programs

foreign

food

11 PA
-

billions

products

of

which

dollars

ing

for

for

assist-

Farm

Register

"It

the

on

farm

program

all. Should the farm pro¬

collapse,

the

Its

consequences

to

"two-price" system.

a

effect

would

be

farmer would receive
of

about

80%

is in

farm pro¬

a

amounts

$2

bushel

a

average

on

A about

1964

about

acreage

$1.30

allotment,

his acreage allotment.

r"A;

price of

$2

a

bushel for the 1963

a

crop on his entire

production. The
course

approved,

economy." "

farmer

a

be

Asset

all

ihe

must

at

'

43rd

-

of

Mutual

annual

con¬

the -Sheraton

\

y

-

Park

A

headaches

reduce

an

his

each

acreage

allotment

acreage

marketing

a

is that if

May 16-17, 1963 (Nashville, Tenn.)

Security Dealers of Nashville
nual

quota

based

on

its normal acreage and production

an¬

Spring party—cocktails and

dinner

May

16

the

at

Hillwood

Country Club; field day, May 17
at the Belle Meade

May 17, 1963

Country Club.

(Baltimore, Md.)

Baltimore Security Traders Asso¬

ciation" 28th'annual spring outing
at the

Country Club of Maryland.

May 17, 1963 (Philadelphia, Pa.)
Investment Association

of

Phila¬

delphia annual outing at the Gulf
Mills

Golf

10%. Each farm would

issued

and

Despite

is

program

allotment

National

on

The farmer received the support

the

High Productivity

on

and

the remainder

on

big difference of

MA""A:,A-''"A

the

that
an

of the normal production

his

whereas

sian

from 40

workers

to

50%

if

farms

of Rus¬

employed

are

in

Club, Gulph Mills, Pa.

May 23, 1963
Association
kers

greater

agriculture.

they

getting bigger all the

time, with

(New York City)
Customers

of

.

Annual

Bro¬

Meeting and Dinner

more

use

of

machinery, and
chemicals.

Land

prices
One farmer in the United States
raises enough for 27

of his fellow

appear

to increase

likely

to

all

lages.

the

A

other

Russian

cities

for

vil¬

raises

people, and

farmer
a

and

farmer

for only five

Chinese

enough

little

produces
over

along with higher local

been

years

on

Students

than

in

cotton
of

controls

effect

the

for

and

plan

that

several

tobacco.
say

[This column is intended
the "behind the scene"

TRADING MARKETS

from the nation's Capital and
may not

reflect

to

interpretation
may

higher

price,

well,

settles that. But it isn't

of

'government

farms,

nor

the

primary difference is that the plan

an

of

New York City, members of

way,

the
on

New

York

May 10 will

Florio

to

Stock

the-

signals in

House

Agriculture

-raised,some
the

House

about

storm

farm

telephone number is

Exchange,

LERNER & CO., Inc.
Investment Securities

admit Robert A.

partnership.

10 Post Office

Square, Boston 9, Mass.

Telephone

Teletype

3-1990

617

451-3438

Cove Vitamin
&

Pharmaceutical
]

Carl Marks
FOREIGN

SECURITIES

TEL: HANOVER 2-0050

•

f^AY'v

& Co. Inc.
SPECIALISTS

Common

and

Warrants

Bought—Sold—Quoted

NEW YORK 5, N. Y.

*'

TELETYPE 212-571-1685

Cooley of North Carolina, Chair-

Committee,

York

Milton E. Reiner & Co., Ill Broad¬

20 BROAD STREET

Not too long ago Rep. Harold D.

Films

CAnal 6-4592

HUbbard

issue

course

Mills

Electronics

Waste King
Our New

Admit Florio

that

management'

is it setting the

Head

Official

M. E. Reiner to

a

of farm policy for evermore."

of

Maxson

allotments in return

acreage
a

Botany Industries
Indian

or

coincidewith the "Chronicle's"

not

want

Attention Brokers and Dealers

taxes.

two

people.

have

a

continue

Americans who live in New York
and

Country Club (pre¬
May 22nd by cocktails and
dinner.)

ceded

*

program,

seems

a

it-owns •outright




production

with

sup-

Association

Cincinnati
Annual
Field
Day—
Reception and Dinner May 16 at

guaranteed price for their product,
W they do not want to comply

program,.,man
of

the

Moines

The editorial said:

1964

presently,

giveaway

Des

of

side of the proposed 1964

'

Government

heart

and Tribune," editorialized

One-

,'

The

has

"The

*

aespite the

the

ask farmers to cooperate in .limit-

has

usually been for direct price
port,
and
nearly one-third

in

for

since the 1951 fiscal

against themselves.

further

effective.

unreasonable that the government

$7

farmers

n0^ w9r^ ou^> Congress could
The proposed acreage and mar¬
change the law in 1965. The trial
keting regulations pertaining to
Plan must be approved by a twowheat are described as going a
thirds vote, if it is to become little

of

Agriculture
billion

are not

themselves beyond
*964. Therefore, if the plan does

productivity of

agriculture,

A'•

Municipal Bond Dealers Group of

wife."

would be devastating to the whole

forthcoming A

farm QrSpnlzatum declares that if
4he plan is approved it would give
a £reat incentive to the Adminis-

Out

American

'

at the Americana
vote- » is a question whether the brought about by the complexities records.
yyA,
rras:
our" country are to be of the farm program,, the great
May
23, 1963 (Omaha, Neb.)
Meantime,
experts
are pre¬
Managed by farmers or by Gov- productivity is a mighty asset
Investment '
Bankers
dicting "that technology in agri¬ Nebraska
ernment bureaucracy, according nationally. Only about 10% of our culture will continue to
Association annual Afield day at
increase,
work force is engaged in
farming,
the bureau Furthermore the
the Omaha
with

problem.
The tremendous

against

Furthermore,

gram at

committing

an acre,
dependgrowing conditions. Thus

prejudiced

Congress to maintain

24 to

27 bushels

and

divided

one

on

that

city people have been mis¬

informed

enough

ing

Palmer

try Club.
maintained

He

programs.

con^en<^ that the farmers

years

the

Queen
City
Club;
Outing
May 17 at the Losantiville Coun¬

Ponents of the wheat referendum

few

(Chicago, III.)

the

the average yield has varied from

In the past

your

conserva-

a

at

■

May 16^.17,. 1963. (Cincinnati, O.)

they can't accept that depletion allowance
on

on most agricultural
declares that there is

problems,

allot¬

acres was estab-

American

which

referendum. Here is the picture:
Before World War II

said

gram

the country

over

certain

a

Hotel."Internar Revenue called about your 1962 tax return-

the Senate Agriculture Committee
believes that a new feed grain; danger of collapse," said Chair¬
surplus control bill which is in the man Cooley. I am wondering how
legislative works will brighten long we may have the strength in
prospects

r

*

>' '■■■■"•, VaA

Banks

ference

"Today the farm

acres.

,'A. A:

■

National

farmers.

Chairman

Meeting
\

convention .rat

Sayings

Corn-

the

Sulphur

May 13-15,1963 (Washington,D.C.)

be- '

ment is seeking to bring information to every voter. But if the
inference is that this is a campaign
per se

deep and costly trouble.

nual

House.

Farm Belt.

a

in

on

"I'm not trying to tell any farmer
to

y

.•

of. Governors

no

acre-

appearing

Agriculture

a

of

is

House

a

how

he

portion

Freeman,

John

Financial Analysts Federation an¬

m^tee, ran into a stream of
opposition from Republicans from

of

more

trends

regulated

fore

1

programs

markets.

on

Journal"

the

Orville

con-

defensive, with

report

"Farm

said

government

the

on

are

saying there will be

■

(White

May 12-15, 1963

cut. Secretary of Agriculture

age

or

Secretary

Agriculture, True D. Morse,
are

committeemen
as

•-

1963

the

of

-

the

at

Springs, W. Va.) A V A

Board

Agri-

if the growers turn down the

throwing

by

intervention,

House

and

.

Hotel.

S-ll,

the Greenbrier. A"

wheat laws passed at this session

have

regulated agricultural system.

a

record

determine

will continue to have

we

Senate

culture

might

farmer

the

Some

Governors

Investment" Bankers 'Association

bill to protect wheat prices,
price supports and»storage ..costs ."lUndfer existing wheat laws there
for wheat and other crop price .would be a sharp price cut if the
supports have been paid out since^farmers turn down the controls.,
in

Billion^ of dollars

SpringMeeting
of

Marshall

D. "Congress, would come along with

President A Franklin

of

tion

Firms
Board

Hill that if the wheat growers
reject the cut in the referendum,

of the first Agricultural Ad-

spring outing at

Country Club.

May 6-7, 1963 (Richmond, Va.)
"Association
of
Stock
Exchange

,.

justment Act of the Administra-'
Roosevelt.

annual

the Oakmont

..Critics of the ^acreage ^ediictjQn
proposal are declaring on Capitol

most

important referendums since passage

sociation

billion

Policies

May 21.
it is

(Pittsburgh, Pa.)

or more.

directly by the important wheat.
referendum

May 3, 1963

Pittsburgh Securities Traders As¬

CCC

the

on

investment, amount to $1

in-

or

and

FIELD

annual

The

loan.

WASHINGTON, D. C.—The Kennedy Administration, Wall Street,

has

INVESTMENT

^

1ILL, THOMPSON & CO., INC.
JO.Wall Sfreet, New York 5, N. Y.
Tel. WH

4-4540

Tele. 212 571-1708