Full text of Commercial and Financial Chronicle : May 28, 1959, Vol. 189, No. 5850

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ESTABLISHED 1S39
BUSINESS ADMINISTRATION
I

*

Volume

189

Number

New York

5850

7, N. Y.,fThursday, May 28, 1959

Price 50

Cents

a

Copy

•

r -(

f EDITORIAL

The

Development Bank and
1 Pueito Rico's Progress i

T'i-!

As - We See It
The recent increase of the so-called

In Chu National
Director of

^ in New York City doubtless has strengthened the
5;

convictions of New
that the

mind

Dealers

to squeeze

of

rate

5

like

Insurance

the

squeezing

is about

or

growth which has become

Dr.

many
It

order.

•

is

has

rate

of

true,

been

of late been

have

course,

raised

and

that

the

reserves

consistently held to amounts

below the indebtedness of member banks to the

tion, which is sometimes taken

•

further

-

tightening of the

this

But

2, There
^

assurance

expresses

market is to be

money

a

freedom

The

by

any

means.

able

and

men

were
abundant. The

more

who manage the affairs of

close of the

: •
•r:

more

war

resources

was

these institu*

James

page

securities

ness

national

economy

as

a

First, let us review briefly
the significant developments which
have
taken place in
our
national

J. O'Leary

Continued
♦An

32

are

the

Mutual

address by Dr. O'Leary before the National
Savings Banks, Atlantic City, N. J., May 18,
,V;

afforded

on

:'v

v-'-'• ■"

page

Dr.

Rafael

Public

Pico

means

of

providing necessary finan¬

cial assistance to businessmen.

Furthermore—as another

important feature of financial policy—adequate supplies

Continued

32
♦An address by Mr. Pico

Association of

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

State, Municipal
and

STATE

AND

MUNICIPAL

Lester, Ryons & Co.
633 So. Hope

Members Pacific Coast Exchange

Encino, Glendale, Hollywood. Long Beach,

LETTER

Pasadena, Pomona, Redlands, Riverside,

THE FIRST NATIONAL CITY

BANK
BOND DEPARTMENT

Burnham and
MCMVCRS NEW

15 BROAD
CABLE:

VO«K AND

STREET, NEW YORK 5.

N.Y.

014-1400

Teletype: NY 1-708

Bond Dept.

Net

Distributor

To

T.L.Watson&Co.
1832

ESTABLISHED

Members
New York Stock

Banks

Maintained
and Brokers

<

british columbia
oil lands

Exchange

Stock Exchange

BROAD

STREET

NEW YORK 4, N. Y.

£outhW€4t COMPANY




BANK

Correspondent—Pershing & Co.

Block

Inquiries Invited

(Rights Expiring August 7, 1959)
We offer

•

PERTH AMBOY

to

buy these rights

current

Direct

California

at the

market.

private wires to Toronto,

Montreal,

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and
Halifax

Exchanges

DEPARTMENT
Teletype
1-2270

DIRECT WIRES TO

PoMcaox Securities

MONTREAL AND TORONTO

Goodbody & Co.
115 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.
CHICAGO

Municipals
Municipal Bond
Department

CANADIAN

Grporatioti
Associate Member of American

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

for

Imperial Bank of Canada

com ./wts.

Commission Orders Executed On All
Canadian

DALLAS

THE

Chase Manhattan

Securities

Markets

Active

Dealers,

.

25

New York

DEPARTMENT

TELETYPE NY 1-MS2

CO.UHNMAM

American

Ana, Santa Monica

Inquiries Invited on Southern
California

EXCHANGES

•

San Diego, Santa

OF NEW YORK

Company

AMERICAN STOCK

BANK

Dealer

TIRST

BOND

Offices in Claremont, Corona del Mar,

view

burnham
MONTHLY

Bonds and Notes

Associate Member American Stock Exchange

the

30 BROAD ST., N.Y.

;

Members New York Stock Exchange

BONDS

CORNJ EXCHANGE

Public Housing Agency

Street, Los Angeles 17,
California

HAnover 2-3700

Investment

34

REGISTRATION—Underwriters, dealers and investors in corporate
a

Municipal

•'

page

■

i

CHEMICAL

Underwriter

on

before the American Management Asso¬

ciation, New York City.

1959.

Securities
telephone:

to

'&M

Housing,

State and

offered

inducements

and

U. S. Government,
e

economic

stimulate private investment—Puerto
Rico has also focused attention on

tial undertakings in our

in

heart of

workers,, construction of industrial
buildings and other complementary
aids

in the past year. In view of the steady busi¬
recovery of the past several months, it is easy

SECURITIES NOW IN

DEALERS

in

the

Careful

.

economy

$62 billion in governments to $52 bilon

to

market

ment

at

financial plan¬
ning can thus spell the measure of
success
which will be attained by
any development program.
As
"Operation
Bootstrap"
took
shape in Puerto Rico, recognition
was given to the need for financial
instruments to help in the process
of economic development.
In addi¬
tion to tax exemption, training of

whole.

in government

Continued

is

remarks

lie

expansion.

and our financial markets. Pri¬
attention will be paid to finan¬
developments, but they
can
be reviewed satisfactorily only
against the background of develop¬

obligations than in loans to private business and
individuals. Even as late as the end of 1950 the
ratio

my

ingredient in the process
Indeed, the availability of invest¬

zation

year

omy

found commercial banks

of their

of

essential

ment funds and their effective utili¬

have in store for the American econ¬

cial

"

with much

purpose

by private investors in the social,

an

mary

rtions well realize that the nature of their assets
I As quite different from what it was in days gone
by when vast expansion was more easily induced.
The

next

is

and to look into my crystal ball
to see what the next several months

v

~-

Investment

year

if the discount rate

reserves

excess

The

cor¬

political stability of Puerto Rko.

of economic growth.

outline the significant economic and
financial .developments in the past

:

lower

economic and

time most worrisome,
the financial history of
States.

Government, municipalities and public

confidence enjoyed

i-

of the

one

Proud of the unblemished debt record estab¬

porations, the banker outlines fhe advantages of having
an official of the Bank in New York City, and notes the

same

periods in
the United

continuance of

rates. There is some question, to say the
ieleast, whether commercial banks would rush to
^

have gone through

year we

interesting, and at the

money

^ ' expand their loans even

mainland.

lished by the

capital markets and provide more
at the Fed. Moreover, the author

other factors behind the firmness in

are

natural

promises to be hardly less eventful.

the full story

is not

to free market's

confidence that corporations will not disgorge
their holdings of Treasury securities.

During the past

that

most

^ expected
: or, at the least,
'•
present policies.
:

t

as

Development Bank's pullulat¬
one of the highest invest¬
ment rates in the world, are described by the Bank's
head. Mr. Pico details the supplemental, non-competitive
private lending and public borrowing performed, and role
in improving the financial environment in Puerto Rico
and in bringing the banking community closer to the

ing activities, making possible

pressure on

monetary

banks. It is also true that various

spokesmen for the Federal Reserve
system have several
times of late warned about the danger of infla;

O'Leary directs attention

Treasury

'

reserve

Puerto Rico's Government

prospects for a

prices, for "a thoroughly

recuperative powers; believes Congress will be com*
pelled to raise the statutory interest ceiling on Govern¬
ment bonds; and expects success in achieving a balanced
budget will dampen the inflation psychosis, remove

discount

excess

that

uncovers

a year-end longhigher than the current one.

term interest rate somewhat

of the economic doctors among the
politicians. The facts are, however, of a different

so

industry's economist

satisfactory business rebound" and for

fetish with

a

President, Government Development Bank for Puerto Rico

America, New York City

deceleration in the stock market

badly and prevent that

economy

By RAFAEL PICO*

Economic Research

Life Insurance Association of

"tight money" policy of the Fed¬

eral Reserve authorities is
,

of

others

and

Economy

By DR. JAMES J. O'LEARY*

prime rate

40

Stock Exch.

Exchange Place, New York 5, N.

Tel. WHitehaU 4-8161

Y.

Tele. NY 1-702-3

Financial Clvonicle

The Commercial and

.

.

Thursday, May 28. 1959

.

(2406)

2

The

Brokers, Dealers only

For Banks,

participate and give their

in the abil¬

take pride

to

HERBERT

pay

advantage

E.

intended

not

are

be,

to

nor

ings.'

:

■

The

Interstate

Bakeries Corporation

Food is

problems.

daily

not

does

Corporation
Established 1920

the

5

most

Teletype NY 1-40

BOSTON

•

CHICAGO

•

-

ful
in

Bak¬

in

continues
a

I

1.

MBSRT

I
.

East and Mid-West and "Weber's"

It has

in the Far-West.

txeh.

acquired iourt

well

e n

e

in

Boston &

PUtt. Stock ixtK (Anoc.y

cation. We

sis locust street, wma. x fenna.

23

six

and

bread

Its

Madison."

"Dolly

cake;

name

bakeries

cake

strategically located and its
customers, which are restaurants,
grocery stores and food stores, are
well
served
by
the
company's
large fleet qf trucks.
-sW.'■
The most
important factor in
any business is—management. The
ability and experience of Interstate's management is clearly re¬
flected in its past and continuing
success. Here are some potent sta¬

are

Trading Interest In

.

American Furniture

Bassett Furniture Industries
Life Insurance Co. of Va.

tistics

period:
1949-1958. Figures are. based upon
the outstanding 961.023 shares of

Commonwealth Natural Gas

;

111%

from

million.

LYNCHBURG, VA.

56%
LD 39

-5-2527—

TWX LY 77

Wire

York

Private

to

New

City

•

from

increased

Sales

$55

Net

million.

800%

10-year

stock.

common

STRADER and COMPANY, Inc.
•

the

for

million

$116

to

increased
million
to
$3.6

earnings

$2.3

increased

Book value

Working capital increased

.

127%).

Current ratio

is

2.85

1.

to

The company has preferred stock,
but no bonds.
Dividends
For Banks,

Brokers and Dealers
'
'

'

'

'

•

•

.A

from

38C

thermore,
was
paid

$1.40

Fur¬

stock dividend

100%

a

270%

share.

a

in 1951, a 25%
stock
dividend in 1954 and another 25%

GESTETNER LTD.

stock

"A" REG.*

the

)

dividend in

1951

and

UNILEVER N. V.

increased

has

to

the

current
a

is

A. D. R.

and

400%

original

been

market

the

increased

one

believe

yield
is

in

on

over

every

in the past 10

this

Bought

-Sold

-Quoted '

Available

on

Request

a

years.

stockholder

depressing

York

Stock

Exchange

55 Liberty St., New York 5
Tel.:

BE 3-8880

Private

Wire

Teletype NY
System

1-4686

to Canada




effect

management
and

I

consid¬
con¬

1957.

They

earnings,

on

mastered

earnings

$3.43 from

only

ally

declined

$3.86

were

the

the

share

a

second

and

1950

Affiliate

the

of

Tokyo, Japan
Brokers

111

Van

V.

14

the

V

'

1

•

•

In addi¬

close

June
30,
1958,
opened
one
store
in

'■

There will be stores added

' r;V

was

.

recently

stated

;

%

..

by

months

six

fiscal

have
Winston-

1958,

ending

of

the

Dec.

fiscal

current

earnings

showed

a

equalling

$2.15

per

pared

With

period

of

•

North

The

11%

more

will

stores

be

1959 in Binghamton,
New York; Charlotte, North Caro¬

Co.

*

of

store

in

lina, and Lenox Square Shopping
Center, Atlanta, Georgia.

tions.

We are

currently negotiating for the
three

additional

pur¬

embraces

stockholders

retire

They

One

part

of

a

Dec.

already

the

light

Jewelry

two

elry

is

Stores

one

of

largest retail credit jew¬

in the United States.
original Kay store - was es¬
stores

The

tablished

in

in.

1916

Pennsylvania.

stock of 56 corporations
credit

jewelry

quired.

In
a

Reading,

In 1954 80% .of the.

1956,

group

operating

stores

was,;. ac¬

Lazard

Render

obliga¬

in

INC.
-

all

a

brokerage service

Unlisted

Securities

for Banks and Dealers

de¬

40

conservative

by

analysts

issues

are

Teletype No. NY 1-2762

but
that

now

high."

so

Exchange Place. New York 5
Phone: WHitehall 3-7830

as

those "which have been neglected

In the

,

main, the kind of stocks that in¬
stitutions
the

30

are

looking

at

are

times

earnings, but
stocks

price-earnings
been

wallflowers

the bull market.

With
gross

the

£

J?

more

the

3

have

that

ratios

not
over

glamor issues selling at

pedestrian

Freres

in the offering for

& CO.

Security Dealers Assail

Y.

the

chips

which deserve attention

Kay

solicitation

Members

made

manager

blue

other

the

1
for'J

Green 9-0187

particular securities

WEINBERG,

N.

continually inves¬

15, 1958, by Mr. C. D. Kaufmann,
Kay Jewelry Stores.

for any

like

to Finance

President

of

York 6, N; Y.

or

com¬

the

short-term

are

offer

an

increase

S.

institutional

scribes

dated

not.

tigating potential acquisitions.

stores

the Southwest Area."
above

Stock

negotiating to

is

$5,000,000

to

is

orders

1957.

acquisitions

and

to

Monthly

BOwlingr

Telephone:

year,

share

$1.94

company

in

The

our

Digest, and our other reports
that give you a pretty clear
picture of the Japanese
J
-*
economy as a whole.
1

61 Broadway, New

31,

Carolina, and one
in Prince George's Plaza, Hyatts- acquire
eight to ten additional
ville. Maryland, which is adjacent stores
and has arranged a
loan
to Washington, D. C., metropolitan
with
Prudential
Life
Insurance

letter

s

for

Nomura Securities Co.,lli.

the

management tha$ for the

first

"■

we

year

in

investment Bankers

&

IN JAPAN
Write

This

the

of

i

;

~

Opportunities Unlimited

company

Midgley

of

chase

,

Broadway, N. Y. 6 COrtlandf7-5680

21 States

Washington, D. C.

It

$500,000
in
net earnings,
after
taxes, (equals 70q to 900 a share
on present capitalization).

Three

Inc.

of

Yamaichi Securities Co., Ltd.

operates

building.

of

opened

'

-

Company :

of New York,

now

company

to

area.

l

Yamaichi

a

acquisition

the

name.

$40 0,00 0

Salem,

write

or

Securities

consoli¬
dated basis have been profitable
without
exception
through
its
entire
43-year history including
the depression of the 1930s.
Net
profit margin after taxes averaged
5% in the past five years, a rate
regarded to be most attractive in
any industry.
on

■

this year, both by acquisition and

minimum

"Since

I

'

in¬

150,000 shares.

by

operations

v.

»

1.50

% Capitalization

„

tion, the company' manages and
supervises the 24 affiliated stores
above
mentioned
under
Kay

a

Wf

low

and

.

/ IMfc

-

<p

have

during most of
•

-

-

promise of

:

:

-

■

increased

through expansion

revenue

public ownership for the first time

of retail outlets and consequential

of

increase

150,000 shares of Kay Company

stock

at

$21

share, the highest

a

price the stock has sold until

cently.

About

38%

of

the

re¬

Kay

current

being
and

of

net

$1.60

well

income—with the

share

per

covered

showing

by

better

dividend"

earnings

than

a

yield

executives and their families.

Over-the-Counter;

Quotation Servicec
for 46 Years

7%

Company stock is closely held by

stock—with substantial ownership

Earnings for the first 16 weeks of

Jewelry

this year, were $1.03 vs. 85c a share

store

for the

retail outlets.

20%.

in

creased

000,000 in net
sales

2.20

' % 1.50
"

107 stores in 73 cities in

$5,-

some

dollars.

million

In

*

-

information

•:>'

and

annu¬

The

1958 period; up

9

•

current

Call

1.69

2.30

2.9p

*

*

,

$0.80

.

*4.33

con¬

tribute

per share,:

%;

,1.46,

23.12

Upon

es¬

highest in the company?s history.

same

$2.15

< 1st 6 MOjs.»

27.37

i

ber,

they

should

headed

problems

in

Alfred L.Vanden Broeek & Co.
New

year

have been expected to have quite

to

Members:

20%

Certain handicaps in 1958 could

but
*Review

the

tinue.

■-

timate

price of

eration by the company will

PHILIPS LAMP N. V.

on

The annual dividend

annum.

has

except

LTD. REG.

Based

share, the capital gain

investment

per

FAIREY AVIATION

1956.

pre-stock dividend price

about 838

share

' i.t

'

*>-»

For

stores in the Southwest last Octo¬

the

'
>

"■

Dividend

.

diversifi¬

ical

brand

one

and

known

Southwest,,
providing fur¬
ther geograph¬

the

in

the

October 1958

.v.)::: stores

■

"Butternut"

is

policy of
purchase
of established stores and by add¬
ing new stores, your company in
our

outstanding

has six
brand
of bread, the best known

which

of

northwestern

two

and

company

names

A CO.

Members: Phila. -tofto.

Its

-a

The

help.

H CAPIAH

products
branches
State except five north¬
brilliant.

States.

offerings.

we can

every

eastern

ISSfUES

submit your

Perhaps

in

and

been

sold through 135 sales

are

home for certain of your

has

record

Its

per

STOCKS

30th %

26,9'J

.

Kay

"In keeping with
expansion through

Herbert E. Harris

fifth

can't find

INACTIVE

1937,

forged

kind.

Exchange-

Kay Jewelry Stores

Incorpo¬

has

RECORD

June

24;20

_

1955

branch offices

our

J A P ANESE
Ends

1957..

MIDGLEY

Members Pacific Coast Slock

steadily ahead and is now the
largest organization of its

STOCKS

V.

Analyst and Account Executive
Mason Brothers, Oakland, Calif.
:

,

like¬

are

1950

VAN

Head

Corpora¬

rated

it

INSURANCE

which

Year

-$14.40

6, N. 7.

NY14557

additional stores in

Gross revenue0

_

Exchange

Mobile, Ala,
Direct wires to

>

Earned

1953

industry is In¬

tion.

Fiscal

1950

success¬

terstate

up.

EARNING-DIVIDEND

the

.

are

country

wise set

Over-the-Counter Market, "

the food

eries

If you

the

of

in

traded

six

the

'

*

is

stock

The

companies

SAN FRANCISCO

Private Wires to Principal Cities

LIFE

tials.

through

which

There

and

Exchange

Stock

New Orleans, La. - Birmingham, Ale

realizes to the
maximum economies in purchases.
Company

bad—produced
by an outstanding organization,
which has excellent profit poten¬
times

pur¬

wholesale subsidiary of the Kay

a

—good

merchandise

their

chase

department. So, this is an invest¬
in a popular daily necessity

live

York Stock

'American

19 Rector St., New York
HAnover 2-0700

They

procedure.

agement

ment

number

One

120 Broadway, New York
WOrth 4-2300

but food

be;

food.

one

Stock Exchange

PHILADELPHIA

need

by bread
alone," it is

Associate Member
American

if

ne¬

cessity. And
although "man

New York Hanseatic

Members

point of efficiency and it has an
excellent
and
growing research

deferred
a

Members New

i

high standards, its modern equip¬
ment is maintained at the highest

is

Steiner, Rouse &Ca

(Page 2)

compro¬

Almost every other necessity and,
of course, all non-necessities, can

old—Quoted

V.Midg-

quality of its prod¬

the

on

B o ught—S

Analyst, Mason Bro¬

ley, Head

To maintain its well known

ucts.

Her¬

—

(Page 2)

Dayton, Ohio.

thers, Oakland, Calif.

be

»

Bakeries Corp.

Kay Jewelry Store:—Van

-

never

company

mises

daily necessity of life.

a

10 times earn¬

and the current 81.40 divi¬
is only about 40% of earn¬

ings
dend

:

'

Harris, Investment Deal-"

bert E.

sell the securities discussed.)

to

is selling at about

HARRIS

Securities Dealers

Over-the-Counter

your

offer

as an

Dayton, Ohio
Member, National Association of

you
to take
of our nation¬
wide private wire service
and prompt service in

will

It

they to be regarded,

'i

Louisiana Securities

particular security.

a

Alabama &

<

\

er,

of

range

for favoring

(The articles contained in this forum
are

extremely
contacts.

an

cover

reasons

(

Participants- and

Their Selections

Interstate

ity of our large and expe¬
rienced trading department
broad

This Week's

Forum

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

Try "HANSEATIC"
We

Security I Like Best

growth

potential

Stores,

in

as

of

any

Kay

chain

operation, lies in expanding
There

are

18 stores

on

the current price of the

by management in the
it

appears

elry
much

to

Stores

that

me

stock

company,

Kay

will

Jew¬

enjoy

a'

higher market value when

National Quotation Bureau
Incorporated

„

Established 1913

Assuming that 1959 earnings will
approach 84
reasonable

a

share,

which

expectation,

is la

the stock

in California which

by

Kay

Kay

but

name

are

operate

not owned

it

under

vestment

and cooperate in

the

man-

becomes

better

Dealers

known
and

by In¬

the Invest¬

46 Front Street
cmchoo

ing Public.

"

'

;

-

New York 4, A. Y.
SAN

ERANOTfiidO

\

Volume

Number 5850

189

.

.

The Commercial and Financial Chronicle

,

(2407)

3

i-'V-

1

Analysis and Indictment of
The "Price Notification Bill',-:;V

Acting Assistant Attorney

General

Financial Market Trends in Our National
—James J. O'Leary
z

~

By ROBERT A. BICKS*
-

D E X

IN

Nv'' '"'
|
: ■ #
Articles and News
'■

An

Antitrust Division. Department of Ju.tice, Washington. D. C.

Analysis and Indictment of the

—Robert

>

A.

Bicks_^

Page

Economy V

""

*_

"Price

'

**

—Cover

CHARLIE DOOLEY SAYS:

Bill"

Notification

3

_

:

Justice official makes

of economic

use

Outlook

coordinated

enforcement's limitations and
overall

and

antitrust

for

the

for

argues

Out look

My purpose is to present Justice
Department views on S. 215, the
".'Price Notification Bill." Treating

a

/.

Our

contribution,

any,

can
make
to

antitrust; enforcement
H

rneeting

problems

of > inflation,
problems with which this Com¬
mittee, Snd * indeed' the entire
Executive

Branch,

are

vitally

con-,

eerned?

The

'

rv

the

prevent by

light

publicity alone

of

ad¬

tors, the bill goes
that

"no

such

otherwise,

Kefauver

bill such

it

put

Senator

as

opening 1 these
need of a

S. 215 arises from the

as

fact that in

a

number of industries

not

may

ciently vigorous

to

protection

interest

be

excess

—-

(Special to the

,

ade¬

public

the

*

the

*

vigor of

such

.

A Critical

LIVINGSTON OIL
20

•

f;

22

'

EQUITY OIL

METROPOLITAN

26

T_

Appraisal pf Mortgage Banking—Walter C; Nelson

A Tax

14

Harnischfeger

Committeeman Views Taxation and Thrift

—Hon?1 Eugene J.

REEVES

15

SOUNDCRAFT

-•
,

Keough.

y

i

16

Weakening of Savings Banks Not in the Public Interest

interest

is

no

by

Mr.

Subcommittee

longer ade¬

before

the

Antitrust

and

in
which
he
presented
Department
views
on
S.
Washington, D. C. "

Justice

Opening

the

Remarks

the

2.

Interested

See

We

Business

parties

or

the

against,

*

!;!."7

ff

It

(Editorial)___—.

Einzig:

approval of the Attorney
establish

the

of

part

sion "may

rules

^

Recommendations

•

brief,

Reporter

Our

Reporter's

very

on

brief,

p.

2, lines

lines

page

Salesman's

Securities

3,

p.

Ibid,

lines

lines

7 S.

215,

z*

Offerings..—,

8 £.

215,
215,

p.
p.

Market

.

.

The State of Trade and

lines 21-25.
5, lines 4-5. »>

" V

\

Stock

4

Twice

Copyright

Weekly

Nashville




Chicago

Schenectady

CHRONICLE

FINANCIAL

'."■"'I ;

B.

Park

-

.

-

U.

Regi

S.

Patent

Office

v

-

DAN.4 COMPANY, Publishers
Place, New York 7,

REctor

george

2-9570

to

N. Y.

-■

Glens Falls
Worcester

28,

president

1959

Reentered *

ary

25,

as

1912,

second-class

at

,

city.news.

Other

Clncago

Offices:

3.

111.

135

etc.I.

South

Salle

office

STOCKS

Febru¬

at

New

.

1879.

By IRA U.

.

Pan-American

in

Union,

SG5.00

per. year,

of
Canada,--&6B.00
per'
Otfccii Countries, $72.00 per year.

Dominion

of

Bank

$45.00

St.,

'Telephone STate 2-0613).

and
per

vNote-^On

year.

rate

foreign
must

be

account

of

of

exchange,

subscriptions
made

in

New

Postage extra).

the

fluctuations

remittances

.

with plenty
on

English
of brass tacks'

investing.. He

gets

of se¬
better
than most in what he calls the
'Surging 60'sV — Donald K.
White, Financial Editor, San
Francisco Examiner. $2.50

down

to

naming

names

curities he thinks will.do

Record—Monthly,

.(Foreign

.

advice
"

Publications

Quotation

yeaiv

.

COBLEIGH

in layman's

"Written

S.

the

La

matter

post

Subscription Rates

Other

and

the

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

_

"'"Every Thursday (general news' and ad¬
vertising' issue; and every Monday. (com¬
plete stati'.tical issuo — market
quotation
records, corpora lion news, bank clearings,
state

BUYING

-

(Subscriptions
in
United
States, U.
Possessions, Territories
and
Members

j. morrilsey, EdUur

May

B. Dana

Company

.

9576

danav seibert,

GET RICH

I

;

u:t;

1959 by William

S

Thursday,

TELETYPE NY 1-5

.

HOW TO

48.

Exchange

ST., NEW YORK 4, N.
-

60's'

2

Industry..:

The COMMERCIAL and

William

York

60 Profit-laden

Stocks for the "Surging

.21

Washington and You—

'

;

TELEPHONE JTAnover 24300

"•

A Guide to

36

4,

PREFERRED STOCKS

Boston

44

:—

Wallace Streete

Security I Like Best

15-20.

3-4.

Spencer
Albany

33

—

—

and You—By

The

.

Chicago

—

25

BROAD

*

15-20.

pp.

Los Angeles

Dallas

Cleveland

28

Corner

The

17-20.

.

25

Philadelphia

46

Security

Prospective

31

WILLIAM

•

San Francisco

46

Securities Now in Registration

\-

20-24.'

215,

/

s

29

Report

by
ieia,

;

Direct Wires to

^

Securities

Railroad

Published

New

Teletype NY 1-1825 & 1-4844

4

Governments!__—

on

INC.

40 Exchange Place, N. Y.

HA 2-9000

27

;

Public Utility Securities—

]

.

mind, why does

Continued

Bankers

Observations—A. Wilfred May_

mackie,

&

46

Our

'

Singer, Bean

10
37

sketch of S. 215's provisions. With
these provisions in

9

Bargeron

cases or

public hearing."9;
a

Reeves Soundcraft

8

"Psychological Effects of Changes in U. S. Reserve"._

News About Banks and

decline to call

cases

Pacific Uranium

8

Mutual Funds

and

Bearing

Ling Electronics

48

the Investment Field

Indications of Current Business Activity:

waiting require¬

in appropriate

categories of

9 S.

Members

Cover

Gen-'

"could

Hampshire

30

Bookshelf

Man's

-

30

Ball

1

A

"

Gustin-Bacon

From Washington Ahead of the News—Carlisle

And, in like fashion, the Commis¬

Statement
(D. Tenn.),

specialized in

21

Gold Loss—

New

I
have

___jL_;
Our

on

Regular Features

ments in appropriate cases. * * *."8

6

Senator Estes Kefauver
April 23, 1959, p. 2.

—1—

First National Bank in Dallas Comments

with

eral,

-

by

Heads National Association of Mutual

Savings Banks.'——."

procedures for the waiver of all

S. 215, April

Opening

>

"ilti

John deLaittre

As

Commission,

5 Id.

p.

19

_i_

*

*

the

for and

increase.

proposed

However,

3 S.

1959,

*

Dealer-Broker Investment

Monopoly Subcommittee
2 Mimeographed

Outlook—Edward A. Merkle

give testimony either for

Senator Joseph C. G'Mahoney ID. Wyo.),
before
Senate Judiciary
Anti-trust and
on

18

,

Coming Events in

215,

Monopoly

Mimeographed

!'!"6

*

*

So much for

Bicks
on

reasons

J.F.Reilly&Co.,Inc.

Growing Economy

a

—Karl R. Bopp—
The Stpck Market

17

4

Savings Banks Functions Assist

would "be allowed to appear and.

hand' of c0mpetition."2
^Statement

the

—William A. -Lyon—-

•

Mutual

Bank and Insurance Stocks

a

■i

6

_

"Chronicle")

The Case Against Mutual Security—Walter

corporation with. re¬

com-

some- areas

quately protected by the 'unseen

■

CORP.

_1A-—"

justifiability of the proposed in¬

or

*

diminished to the point where the

•1

PERMACHEM

Cover

_

Opportunities in Puerto Rico

BROADCASTING

to specify
included in

of $10,000,000, shall increase-

amine

suffi¬

provide

to

petitive -forces has in

23,

Pico

Investment

Puerto Rico's Bank Resources Reach New Record High

[presumably the topeight firms], and having capital,
surplus, and undivided profits in

the

competition

i/,

& MINERALS

Growing Nationwide Appeal of Puerto Rican Tax-Exempt
Bonds (Special to the "Chronicle")

on

corporation

spect to

hearings, "The possible

1

*

13

Puerto Rico's Tax Opportunities Offer Mutual Benefits
Max Goldman li
•_

group

crease.

Stated

aft

,

12

-V

■-,-t**-

—Teocloro Moscoso

unnecessary

and unwarranted price increases."1

Senate

WHitehall 4-6551

the

|or the increases.? The bill seeks

public

11

Telephone:

Banking—George Champion

*'

Dept.

STREET, NEW YORK

Meet Problems of Inflation?

.

quate

___

WALL

99

Development Bank and Puerto Rico's Progress

Current

'

;

10

ALASKA OIL

price of its product in such
days' i
notice.4 Such notice, according to \
The Problem S. 215 Seeks to Treat
S. 215, must be delivered to the
First, this bill, described by its Federal Trade Commission, the
huthor, Senator (PMahoney, in his Attorney General,- and officials of
opening statement, "is intended to the Congress "for publication in
4 be a first step to bring inflation the Federal Register and the Con¬
under control * * * [and] consti¬ gressional Record."5 '
tute [s] an invitation to the lead¬
"Within .thirty (30) days after
ers
of concentrated
industry to such notice,'' the bill goes on,: the
avoid price increases for the prod¬ Commission would be obliged to ;
ucts
they manufacture and sell "call a public hearing on the pro^
without first showing at a public posed increase, at which it shall-*
be the duty of the Commission
jl" V'; hearing that there is gobd rbason
and the Attorney General to -ex-'

vance

should

Wall!"

Articles About Puerto Rico and Its
Economy

line of commerce" without 30

"to

guys

their junk at

Population Revolution and Long-Term Demand for

•

this bill, my plan is — first — to
To meet such problems, S. 215
briefly that problem of would
apply to "any line of. com¬
inflation, the proposal seeks to.
merce in which 50 per centum or
meet. With that problem in mind,
more
of .the
total sales in the
Second, just how would this bill United
States are made by eight
treat rising prices?
Third, what or less
corporations, including
difficulties do we envision in this
their respective subsidiaries and
bill's
approach?
And,
finally, affiliates
* *."3 Within such sec¬

if

me,

on

Obsolete Securities

y

:_

Municipal Bonds for Individual Investors—Ira U. Cobleigh

sketch

What,

up

6

Housing—Philip M. Hauser

Just How Does S. 215 Seek to

.

6

Ensley.

for Money and

—Ralael
II

Colbert

iV—Roger W. Babson

against inflation. '

program

I

L.

Babies and Marriages Make Land Companies Attractive
,

•;

ask

you

clean

Economy and Mutual Savings Banks

—Grover W.

\

The Attorney indicates the

demonstrate.

now

Automobile Industry—L.

99

judging "30-Day Price Notification Bill" as an inoperable .
anti-price inflation vehicle.; Noting that the Bill applies to one- r
half of the country's commerce, Mr. Bicks' brief shows: (1)
market forces would be supplanted by. public-inquiry pres- />,
sures; (2) the attack on symptoms is not worth the cost; (3) j:
past admonitions failed and, with this Bill, firms would forego
price'cuts to avoid going through the procedure in case of '
future price rises; (4) firms would magnify a price rise so as •
to obviate small price hikes; and (5) it would hurt those pro¬
ducers responsible for whatever price flexibility some concen- :
extent of antitrust

the

analyses^ in indicting

and

trated industries

for

"If

'<:*'■

■

Outlook

in

for

and

advertisements

York

funds.

At all bookstores

David McKay Company,

•

3rd Printing

Inc., 119 W.40th St.,N.Y.1S

The Commercial and Financial

Chronicle

.

.

Thursday, May 28, 1959

.

(2408)

4

companies, might be arrived at by
capitalizing the expected longterm annual dividend receipts at a
rate embodying the pure rental
value
of
the capital
to invest,

Observations

plus
ment

THE PRICE EARNINGS RATIO:

of the 1949, rising to 15 in 1956-57, fall¬ other and more elaborate formulas.
and opin¬ ing to 12 in 1958, and now up to Nicholas Molodovsky, customers'
ion about individual issues centers 17 (with the dividend yield down
broker and analyst, whose work
within the
on
the price-earnings ratio (the to 3.2% from 4.7%
in this area has been arousing
year).
p.-e. ratio, or
considerable public interest, gets
The shares of the seven largest
••multiplier/'
his
multiplier through a more
is derived by
steel companies are now selling
complicated
technique.
As
ex¬
at 10 times their projected 1959
dividing the
plained by him, he uses a general
annual perearnings against a multiplier of formula expressing the average
Much

ol

discussion

the

;

earn¬

7

in

1957.

into .the

An Index of Emotion

mar-

'•Relating the

ket

price)..
The priceearnings ratio,
through the

average

earnings

period of years to the
fluctuating market price is par¬
ticularly significant. The changes
covering

earnings yield,

in

a

ratio manifest the invest¬

this

basically

is

t o

tuations—a kind of index of con¬

value-

the

Wilfred

May

tor in circum¬

scribing

expectable dividend

his

Fluctuations in the ratio

return.

in

significant

likewise

evi¬

dencing some of the illogical mar¬
ket
behavior of the investing

the

risen from

wise

1957.

.

56, IBM 56; while in the dog-house
of low ratios are such issues as

issues

Boeing at 9 times earnings, United

these

ratios

markets.

bear

were

lower

If

_

"There

of

1929,

the

of different
period/ or,

by Charles R.
Blyth, Chair¬
the

of

evident

is

man

tionwide

n a

lin

for

will

his

interpretation of an issue's mar¬
pricc-to-earnings relationship
in terms ol real investment value.

in

New

does

not

imply

the

with

a

his

capital

should

elements

and

be

the

their
peak
earnings.
In
early 1937 they stood at 18 times
higher earnings. At the end of
1937, after a severe market break,
the multiplier fell to 10. In 1938
it rose to 26, falling to 9 in 19411942. It rose to 18 in 1945, falling
to 6.7 times the lower earnings in

of

member of the

committee

o

This

desired, but even here the horizon is brightening.

Weeks

risk

for

He is a

committee

exec¬

The Norwich

of

Pharmacal
Co., a director and
member of the executive commit¬

writer

is

of

Chairman

also

the Aviation

specifically gearing Securities Committee of the In¬
the purchase price to the liklihood
vestment Bankers Association of
of recouping the invested prin¬
America.
cipal with interest plus a profit
Alter leaving college, Mr. Gib¬
increment, within a foreseeable lin was active in the securities
interval. An advantageous buying

business

price, in the

New York in 1930.

of non-growth

War

II

the
two

in Chicago
he

uty

and

to

came

During World
three years

served

Theater,

European
as

the

in

last

Executive Officer and Dep¬

of

Commander

that theater.

the

in

OSS

He attained the rank

of Colonel and

have

was

decorated with

%

Legion of Merit, Legion of
Honor, and the Croix de Guerre

1870

War II, he has devoted his time
principally to corporate financing
and the underwriting of corporate

the

with Palm. Since the end of Werld

securities.

spring period has brought definite improvement to the
automobile market, dispelling much of the disappointment pro¬
duced by poor experience in January and February. Gains have
not been Spectacular, but with monthly sales moving up to the
vicinity of 500,000 units, expectations have been revived for sales
of at least 5 ¥2 million domestically produced cars this year. This

HARTFORD, Conn.—John Por-

UNDERWRITERS AND DISTRIBUTORS

teous II, member of the New York
Stock
Exchange, will become a

OF INVESTMENT SECURITIES

vice-president of Coburn & Middlebrook, Incorporated, 100 Trum¬
bull Street, and the firm on June

Dominick

&

Dominick

Members New York, American & Toronto Stock




'

Exchanges

NEW YORK

become

York

members

Stock

Other officers
,

14 WALL STREET

will

New

progressively better in the capital-

"The McGraw-Hill survey points to a
1959

over

that

in

1958

of

the

Exchange.

are

rise of 7% in spending

reveals that businessmen already

preliminary plans for slightly higher outlays in 19G0 than in
This latter finding is without precedent, marking the first
started that businessmen, at such an
early date, have planned to increase outlays for a succeeding year
above the level planned for the current year. Thus, the developing
uptrend in capital goods has all the earmarks of being of relatively
long duration. Even preliminary plans for 1961 and 1962 are only
moderately below those for 1959-80. It is interesting, moreover,
that the McGraw-Hill survey reveals that businessmen are chan¬
neling an exceptionally high proportion of total outlays into
modernization projects, as distinct from expansion-type projects.
This de -emphasis of expansion means that capacity will be rising
less rapidly than in the 1955-57 boom.
And this in turn suggests
that the present upturn in capital goods could be longer-lived
than its predecessor."
<
;
y
1959.

.

Nationwide Bank

Clearings Up 14.7% from 1958 Week

clearings this week will show an increase compared
with a year ago. Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the country,
indicate that for the week ended Saturday, May 23, clearings for
all cities of the United States for which it is possible to obtain
Bank

weekly clearings will be 14.0% above those of the corresponding
last year. Our preliminary totals stand at $25,170,301,278
against $22,072,333,741 for the same week in 1958.
Our compara¬
tive summary for the principal money centers follows:
week

Week Ended May 23—

_—

Boston

Both

011,744,906

Sides

in Steel

%

1958
$11,000,937,943
1,129,190.849
1,001,000.000
726,737,015

1959

$12,319,300,044
1,320,055,311
1,161,000,000

Philadelphia

+ 12.0

+ 16.9
+16.0
+ 11.7

Dispute Continue Adamant

The steel labor negotiations news blackout at New York has
cloaked the widest gap

between management and labor in recent
negotiating history, according to "The Iron Age," national metalworking weekly.
"Iron Age" adds: "It grows more bitter despite smiles for
the benefit of the press."
Steel negotiators are putting the blocks to David J. McDonald,
steel

labor

chief.

Robert B. Co-

burn, chairman of the board; Al¬
bert J. Middlebrook, Jr., president
and
treasurer; John J. Sokale,
vice-president and secretary;
Richard A. Whiting, and Arthur D.
Noble, vice-president.

and

outlays are in a

time since the surveys were

To Bo NYSE Monbor

4th

been getting

have

Chicago

throughout the United States and Canqda

has

New York

Cobum ( Miidlebrook

Correspondents inprincipal cities

.

"The

in

years.

many

director and member of the
utive

developments in housing, automobiles, and capital
been
particularly encouraging. Private nonfarm
housing starts, after easing off slightly in January and February,
advanced in March to a seasonally adjusted annual rate of 1,390,000
units. This was the highest March total since 1950 and helped to
allay developing fears that housing activity was beginning to be
adversely affected by the advance of interest rates .
/

Giblin

Walter

favored

case

March, following the lead set earlier by most other general
The employment situation still leaves something to be

provided still further confirmation that capital
new phase of expansion.

*

f

Hornblower &

compensated

dividends.

in

bofh new orders and shipments in the machine-tool business,
rounding out a very encouraging first quarter. And publication
of the results of McGraw-Hill's annual survey of investment plans

tee of the Drilling & Exploration
methods may be used
Co., Inc., and a director of the
fixing the present worth Sealright-Oswego Falls Corp. He

future

has

-

in

a

and

Various
lor thus

prosperity.

measures.

"News

,

executive

is

Fixing the Price Value-Wise

market's

f
been

partner

for in the buying price.

Dow-Jones

of latter-stage

be questioned whether it is still appropriate to refer
to the upswing in general business as a 'recovery.' Virtually all
key indicators have recovered their full recession losses and are
now establishing new all-time highs.
The Federal Reserve's index
of industrial production, helped to some extent by greater than
normal accumulation of steel inventories, pushed to a new record

goods industry, Which to date have made only a relatively modest
contribution to the recovery movement. March witnessed increases

Giblin

Mr.

But
the
investor
hard-boiled atti¬

calculate the price which

of

characteristic

the

York

has

necessary to give him an attractive
return on his capital. The moneyuse

r st

/office,
ac¬

calculating the multi¬

figure.

plier
should
tude

lor

number of other reasons besides this comparative

improvement has justified the maintenance of higher production
schedules than seemed probable a couple of months ago and has
given a more balanced character to the general business advance.

make

headquar-

te

Industrial Index stocks sold at 19
times

Blyth

Co., Inc., 14 Wall Street, New
City, as Vice-President effec¬
tive July 1, 1959, it is announced
York

ket

thumb

But investors do not act thus. In¬

summit

need

the

This

stead, the multiplier usually rises
during periods of market enthu¬
siasm and rising prices, and falls
during periods of price and emo¬
tional depression.

V.-P.

&

ceptance of any particular rule of

maintaining a steady ratio to the
average long-term earning power.

as

inve stment

Thus

are a

brevity for suspecting that the upturn is still in a rather early
stage.
The so-called leading indicators (such as new orders,
average hours worked, and the percentage of companies reporting
rising profits) are still performing strongly, while some of the
lagging indicators (such as instalment credit and inventory hold¬
ings) are only beginning to participate in the upturn in a really
important and generalized way. Moreover, the upswing continues
to be very broadly diffused, showing little of the spottiness that is

goods

firm. Mr. Gib¬

during

stages of an earnings cycle,
and
higher during a depressed
period, this would be logical, in
upper

In the great New Era

same

Blyth & Co.

Walter M. Giblin will join

ment value-wise.

ratio, with the frequent exception
of the growth-stock issues, occur
from interval to interval, usually
to

the

in

now

"Recent

W. M. Giblin to Join

historically, of the past perform¬
ance of a particular issue — all
without regard to their measure¬

Mesta
Machine
8,
7, and several rail
stocks at similarly low ratios.
And extreme fluctuations in the
9,

Maid

bull

score-keeping

tive

It is

.

Keeping Score of Past
present marks no exception
Performance *;•*'•+
to the habitually extreme price
variations from issue to issue. At
Consistent with these illogical
one pole of popularity are growth
fluctuations is the accompanying
and glamour issues like Polaroid
comment—by professionals as well
with a multiplier of 73, Texas In¬ as amateurs. It interprets the ra¬
struments 66, Minnesota Mining tios via a sort of mere compara¬

from

particular

method used for the calculation of

The

Minute

the

of

market

the

of

ratio

community.

Airlines

choice

value is of secondary importance.
price to the 5-year average earn¬ The crucial need is for realism
ings on Barron's 50-Stock Aver¬ regarding the expectable invest¬
ment
return
from
the
earnings
age has increased to 17.5 from 12.7.
The steel stocks' ratios of price ratio
the
multiplier,
and
the
to the average earnings have like¬ yield.

interval

upswing continues to progress nicely.

"It may

The

past 12-month

fidence. During the
A.

judging inves¬

Business Failureo

approximately one year of age, which means that it is still youthful.
by past standards. The 1954-57 expansion phase lasted 35 months,
and the average length of all business expansions in the United
States during the past century is 27 months.
After stating the
foregoing, the May issue of the Morgan Guaranty Trust Co.
"Survey" continues as follows:
'
#

-

ment community's emotional fluc¬

important

are

relationship between growth rates
ol'
earnings
trend % lines,
and
dividend
payouts
during
the
period 1871 through 1955. This
permits the
computation
of fa
theoretical dividend corresponding
to the rate of growth of an earn¬
ings trend line.
!*f

figure';

ings

Industry

The business

,

share

Trade

Price Index

J

Or the present worth of future
earnings and dividends, and the
multiplier, may be calculated by

stock market's prospects

Car-loadings
Retail

Commodity Price Index
Auto Production

and

degree

Production

Electric Output

■

Food

of risk.

NEED FOR REALISM

Steel

;

State of Trade

interval fixed to

an

the estimated

with

;M';-

•

the invest¬

amortize

during

accord

'The

amount of annual reserve

an

sufficient to

By A. WILFRED MAY

r

The

union,

in turn,

is

threatening to

use

a

divide-and-conquer strategy against the* steel industry.
The steel management group

McDonald's lap.
freeze and

has dropped

a

bombshell in Mr.

It has argued that if he does not accept

existing contracts

run

out

on

a wage

June 30 without a new

Continued

on

page

35

Volume

Number 5850

189

.

.

.

The Commercial an& Financial Chronicle

(2409)

in sales.
We had begun toS estimate look too low or too high,
believe that the spring: seasonal TJie possibility of an extended
bulge in car sales had largely dis¬ steel strike is only one df the cbnappeared. But this year, owing in tingencies that could affect our
part, perhaps, to extremely bad business.
;V-':
winter weather in many parts of
I will say, however, that in our
the country, the spring surge in industry we have never experi¬

turn

.

By L. L. COLBERT*

t

President, Chrysler Corporation, Detroit, Mich.

Automotive head credits imports, in part, for
late the industry.
Mr. Colbert anticipates

helping to stimu¬
continuation of
strong forces will bring about 6 million retailed cars in 1959

car

older

foreign

return to the

enced

a

pattern.

is

It

for the first time in many
real—restoring the seasonal bulge.

It

v

;

'

r

might be

wise

to

clude

there
out

con¬

re¬

my

marks

right

—

with¬

getting

any more spe¬

cific.

Making

estimates

about the fu¬
ture

is

diffi-

cult in

line

of

any

busi¬

safely

can

say
L. L. Colbert

experience
that the automobile business is

no

exception.
In

•

fa^t, the automobile industry

has

one

one

of the

characteristic that makes it
difficult sectors of

more

the economy to forecast. We sell
a

type of durable goods that is
important in the lives of
But it is so durable

very

most people.

that

customers

our

postpone
particular
their personal
can

their purchases with no

inconvenience
views

about

financial

future

at

the

lack

or

are

moment.

of

un¬

Con¬

confidence

in

continued

prosperity
can
have
very
important effects on our
business.
This
is
only one of
many intangible factors that we
must take into account in judging
market trends—though it is prob¬
ably the most important.
Because

sitive

to

our

business is

so

sen¬

this

the

changing moods of
the public, no two years in the
business

automobile

Each year has

ties and
seem

to

its
problems.

be any

"average"

year,

are

alike.

peculiari¬
There doesn't

such thing

as

an

except perhaps in
cars

sold

and

produced.
This being true,
approach to discussing second
half prospects for the automobile
industry is to talk about the kind
of year we've been having up to

no

to

-thing to be said about

see

year
a

in

the

early

should

favorable

con¬

effect

market in the second half.

In

weeks.

pur¬

the

by

duction to arrive at expected to¬
tal production for the year.
In

have

are

others

in the

subject to the qualifications that
must

surround any

mate of

and

the

this kind.

end

of

forward esti¬

the

year

now

imports, brands of cars are
available for purchase in this

now

country than at any time since the

many

early decades of the century. By
widening the range of product

Between

things could happen to make that

automobile industry.
automobile industry has
continued to show its traditional
competitive vigor —• domestically,
and internationally. It has contin¬
ued to respond to the demands
and needs of the motoring public.
As

we

teen

near

by Mr. Colbert before the
Meeting of the National
Board, New York
City, May 21, 1959.

Nineteen Sixties. we can. ex¬
pect an increasing use of the car
as a liberating means of
personal
transportation, and a steady in¬
crease in the--number of families
who

own

meet1 their
I

am

on

AS

A

in

TO

is

many

another

there

years
a

ANNOUNCE THAT

M.

year

WITH

JULY

1,

up

19S9




1959

will

very

.■■•'M/.;-,

North America! Sees.

Seattle, Wash., and is
of the

He lives in

1959

Our

40th

Anniversary

interesting

has

been

real spring up¬

For four decades we have

been

a

part

investors and

participated in the financ¬

our

clients,

our

sincere appreciation

WALL

STREET

YORK, N. Y.

;

;

making

our

growth possible.

a

graduate

University of Washington.
Morristown, N. J. with

his wife and daughter.

well.

of

US

1959

Blyth 6.Co„Ino

KAY- 28.

a

B. M. McFaMan With

PRESIDENT

I

NEW

that

ahead..

1919

for

14

confident

good year
for our business, and that it will
lay the foundation for even better

ing of many of the nation's largest

Giblin

ASSOCIATED

VICE

EFFECTIVE

or mor& cars that
special needs and tastds.

out to be

the amount of

prices holding

what looks like

Walter

BECOME

two

turn

corporations and municipalities.To all
WILL

look forward to

the

community.We have provided service to

Mr.

n

the end of the Nine¬

Fifties and

of the West's financial and business

PLEASED

a*.

i

^

characteristic of the year 1959 in
our business.
For the first time

Conference

ARE

wide range of cars

The

are

Spring Upturn Looks Real

Annual

WE

a

highly beneficial results

the

on

the automobile

used-car sales excellent and

Here

*An address

Industrial

our

work

the

have

can

durables like cars—and

credit

used-car

the year 1959—as it has shaped up
so far—is that it has been a very

43rd

car

anticipated. Be¬
yond these factors, we in the auto¬
mobile business have been happy

Welcome Change in 1959
The first

factor

restrictions

that

y-v':^-V

:

favorable

consumer

one

now.

were

closely related to it. Employment
reached a record high level for
April.
Personal income, already
at record levels, is continuing to
rise.
Savings deposits in banks
and other savings institutions are
at an all-time high. Ample credit
is available for the purchase of

own

terms of the number of

recent

at

of

interest in,the functions and char¬

acteristics of

•

their

or

circumstances

favorable
fidence

if

the

buyers, and
postponed

car

chases

from personal

on

hed in

been

availability and product" special-

;

ization they have greatly stimu-!'
Iated public interest in autoniobiles of all kinds. ' And this
"
" 11—
* - * -

business, it is im¬
Brian M. McFadden has been
portant to add that it is above all
the automobile business, first-half a
hundreds
of thousands.
But
in
appointed wholesale representa¬
year of active public interest in
tive in the New York territory
1959 the mood of uncertainty has production is nearly always larger passenger cars and in the changes
than second-half production be¬ and
fbFNbrth American Securities Co.,
rumors of change in the' prod¬
pretty generally disappeared.
cause
of
the
need
to
prepare uct. From our standpoint in De¬
underwriters
Fears of continued recession have
turned to confidence in continued plants in the third quarter for the troit this
posjtjLyg. .public interest and distribuproduction of new models. Even so, in automobiles is all to the good. .tors bf the
economic growth.
the production total for the first It is a
pleasant relief from the C o m m o nWith this change of mood has
half does point to a year that will
generally
negative
atmosphere wealth group
come a great improvement in the
be close to the volume trend of
prevailing in 1958, and we feel o f mutual
market
for
automobiles.
Month
the late 1950's.: In 1957, for in¬ it is bound to have a
\
good effect funds.
after month, industry sales have
stance, when the industry sold on our business as the year pro¬ : \ Mr. McFad¬
shown steady increases.
And in
very close to six million new cars ceeds.
den will serve
April, total retail deliveries of
at retail, 3,373,000 cars were built
the eastern
new passenger cars in the United
Imports Are Helpful Stimulant
during the first six months.
and
middle
States, includi ng imports,
This atmosphere of positive in¬
Atlantic states
amounted to an estimated 555,000
Sees 6 Million Sales This Year
terest in automobiles of all kinds
from his office
units—as compared with 394,000
at 44 Wall St.,
With the kind of start we have may be due in part to the scores
in April of 1958. This was a 41%
of imported cars now being sold New
York
had this year, and with no reason
gain.
to expect a reversal of the gen¬ in this country.
During the first City. He came
As I have indicated, the return
erally favorable trends in the na¬ 4uarter of this year, imports ac¬ to North Brian M. McFadden
of confidence among the buying
over
9%
of
new
American Se¬
tional eepdomy, we are antici¬ counted for
public, which encouraged people
sales.
More
im¬ curities from the sales develop¬
pating total-pew-car retail sales of passenger-car
to buy the cars they had put off
approximately 5,500,000
Ameri¬ portant than the actual market ment department of Distributors
buying because of a lack of con¬ can-built cars and between 450,000 penetration achieved by these
Group, Inc. in'New York City. He
fidence a year earlier, may be the
and 500,000 imports. This adds up cars, however, is the fact that they also served as a sales training
strongest force working for im¬ to an
expectation that about six may have helped to create new consultant with the Walter Geier
provement in the automobile busi¬ million new cars will be sold at markets for the automotive in¬
Co., a sales consulting firm.
ness this year.
But combined with retail in 1959. This statement is dustry. As a result of the increase
Mr. McFadden is a native of

among

and I

ness,

tinue to

r e ac

4-U

general, the year's develop¬
In response to the strong de¬ ments in the sale and production
mand for cars, the industry-wide of trucks have paralleled those I
production of passenger cars in have outlined for passenger cars.
U. S. plants during the first four In response to greatly improved
months of the year totaled 2,181,- retail sales, truck production for
000. It is expected, on the basis the first four months of 1959 toof present production schedules, taled 423,000 units, as compared
that production for the first six with 303,000 in the same period of
War controls.
'
months o'f the year will reach 3,- 1958. This was a gain of 40%. It
Nineteen Fifty-eight was a year
272,000. This would be a 46% in¬ is expected that production of
of uncertainty for nearly every¬
crease over production during the
trucks for 1959 as a whole will be
one associated with or interested
well over a million units, as com¬
in our business—and that included first six months of 1958, when 2,pared with a total of 869,000 in
the motoring
public. With the 244,000 cars were built.
As you know, it would not be 1958.
general economy in recession dur¬
In talking about the kind of
ing the earlier months of 1958, logical to double the figure I have
given on expected first-half pro¬ year 1959 is turning out to be for
there was a mood of indecision

dustry in the second half of 1959
appears to be very favorable in¬
deed.

months

will stay at or close to the level

change from 1958, In
1958 the entire industry sold only
4,650,000 new passenger cars at
retail. This included 378,000 im¬
ports.
Automobile sales in 1958
were at the lowest level they have,
been since 1952, when production
was drastically limited by Korean

have

conditions of 1958, and that sales

welcome

From the Detroit point of view
the outlook for the automobile in¬

retail

a

n

bile business from the unfavorable

is

years

which

possible,

they have

the spring upturn

states

in

year

of market as good as the one we are
having in the f^rst half was follnttro/1
Ktr
w>r.Z«
lowed by a poor market in the
general recovery of the automo¬ second half. The same factors that

In support of this forecast, Mr. Colbert

cars.

a

course, that what appears to be a
seasonal spring upturn could be

broken down into about 5.5 million American and the remain¬
der

sales looks like

5

The Commercial and

6

institutions

Opportunities

Current Investment

In Puerto Rico
MOSCOSO*

By TEODORO

Development Administration

Administrator, Economic

San Juan, Puerto Rico

I

up

markets

these

of

*

By GROVER W. ENSLEY*
Executive Vice-President and Economist

account-'

are

of grocery sales

for 10%

ing

j

Savings' economist thinks it unlikely general level of longand yields will decline in 1959. Moreover,

wholesaler started operations

indirect advantages of "base company technique"
the strategically located island.

V

cold storage, is ur¬
gently needed in our new Central
Wholesale Marketing Area. More¬

term interest rates

lastj
espe-;

he envisages

very old. Further, he foresees for
savings-decline from all-time 1958
high bat believes it will be higher than most other years. He

$500 billion before 1960 is
mutual; savings banks a

.

it found

Widespread interest is now be¬

Rico.

base

The

executives

company

just beginning to
develop full scale integrated
shopping centers.
are

we

over,

were

.

tages

to

American

corporations
as

device

a

for
1

accumu-

t i ng

the
profits from
foreign sales
a

invest¬

and

ments

both
and

free

of

foreign
U.

S.

This

Rico is well suited to serve as the

in-

"launching pad" for foreign oper¬
ations particularly in Latin Amer¬
ica, which by the end of this cen¬
tury will have a population twice
as high as North America. More¬
over, if by some* chance a com¬
pany is diffident about the use of
a foreign charter,
it may be pos¬

taxes.

c o m e

m e a n s

that

a

corpo¬

ration

Teodoro

1VIobc«»o

at

can

least double the amount of money
which it has available to reinvest
in

overseas

ho

U.

S.

expansion.
until

tax

Puerto

believe

We

disturbance.

There

is

time

as

such

able changes and
the

completed

$32 million ethylene glycol plant
the south coast.

on

in

fields
ered

world

the

)

•

£

•

richest

the

before

Even

tuna

discov-.

were,

the

•" "

recently in the South Atlan¬

'; "

con-

bounced

back

4

t i

to

nomic
,

years

\

to

Grover

Ensley

W.

the

to
home.

company

back

parent

nominal tax

essors.

it

company

charter

a

a

In

shall

we

derive

this

cor¬

the
same
however*

case,

probably

for

future

near

Puerto Rican

and

benefits.

major XJ. S. corpo¬
ration which has a subsidiary in

ask

very

a

on the foreign source
exchange for the privi¬
lege of chartering a base company
under the American flag.

the Bahamas decided to centralize

til of company in business in a
its overseas Puerto Rico
<ase

branch of the Venezu¬

a

the

poration

Last year

which is

to

within

subsidiary. A ruling was ob¬
from the U. S. Treasury
approving the operation, which

insured

that the

U.

S.

would

re¬

of the foreign
subsidiary and not tax the parent
en the subsidiary's income. At the
same time a
ruling was obtained
from the Puerto Rican
Treasury
Department confirming that under
Puerto Rican law a foreign cor¬
on

its

industries,

each

other,
growth

providing

thus

materials

raw

imarkets

and

help

productivity

-

make eco¬
accelerating

nomic

industrial
ser¬
vices are in great and increasing
demand.
Our
banks, large and
growing, need to be supplemented
by specialist financing agencies.
Brokers and marketing specialists
interested in representing Puerto

process. But it is also true, that
we have basic resource*} in Puerto

Rican

:

the identity

poration is not taxable

;

-

Brokers and Marketers Welcomed

tained

spect

Our
both
for

elan

-

keep a large cutting and polishing
operation
going for 500 years.

Business

and

manufacturers

enthusiastic

partners

island industries.

in¬

will

find

among

There is

a

our

wid¬

which

Rico

an

just beginning to
Marble deposits have
are

be

tapped.
recently been exploited and some
of our quarries are said to have

high

enough

quality

marble' to

Puerto Rico's sand and pure

lime¬

from

foreign

sources.

ening field for firms leasing indus¬

>

-

By-Product Advantages

months

Puerto

and

Rico

for

set

♦From

in

talk

a

by

Mr.

an

equipment

Moscoso

offices

finance

before

Association.

pecially

who

will

exchange.

factoring service

a

tablished

with its

foreign location but

the
American
Management
New York City.

up

manufac¬

our

someone

Recently,

is delighted

a

for

or

nine

experience. It previously had con¬
ducted a small base company op¬
eration

ture, and the opportunities for
plate glass products represent un¬
explored profit prospects. Con-^

equipment to

turers

This company has now been
op-

crating in

stone

trial

come

in

accounts
among

San

Juan

receivable,

our

many

es¬

to
es¬

are

ideal for glass manufac¬

stantly growing U. S. demand for
plate glass, for example, is now,
satisified only because of rapidly

increasing,
from

furni¬

but

costly,

Europe.

imports

'!'..''.vvf

In

addition,
researchers
are
finding new uses to go along with
materials those already developed for ba¬

ture makers. Specialists in financ¬

ing inventories
or

or

raw

finished goods and other busi-

gasse—a

sugar

leftover

that

has

board

Serving Growing Puerto Rica—

PEPSI-COLA UNITED BOTTLERS

and

is the achievement of that delicate

pany

also

serves

and Mexico.

com¬

large markets in Los Angeles

Based

on

estimated 1959

Pepsi-Cola United is selling at

a

earnings,

price-times-

earnings ratio which is low when compared to
those of other

leading soft drink companies.

ate

~

Hill, Darlington
Member N.

STUDY:
Our newlyprepared
report

ican

Stock

&

Co.-

Y. Stock

Exchange, Associate Member Amer¬
Exchange, Member Pacific Coast Stock Exchange

Affiliate: B. J. VAN INGEN
40 Wall Street

'

•

& CO. INC.

New York 5, N. Y.

outlines

fUB'a
business and

Please send

tlers, Inc.

me

Free
'

analysis of Pepsi-Cola United Bot¬
'

s

bd»th

Rico

resources

because

and because of

of

achieved, is a
being debated with in¬
intensity in the highest
levels of private and public life.
By encouraging personal thrift
and providing funds for 'capital
formation, the savings banking- in¬
dustry is contributing to the goal
.of. economic growth with stability.
On balance, 1958 was the best year
in mutual savings banking history.
The net gain * in • savings, reached
an
all-time high of $2.3 billion,
and assets grew- by a record $2.6
billion.
We " have become a $38
question
creasing

billion

industry. '!;*/

;

This

past year's

record growth

of the 1958 savings

success

banking year is reflected also in
increased

,

in the

decline

savings to

our

banks

during the early months of 1959,
compared with a year ago, indi¬
that

cates

savings

for

1959

may

fall short of the 1958 all-time high,

will

but

the $40
sets

exceed

years.

other

most

pre-)

We should approach

billion mark in total

as¬

by year-end.

Sees Higher Interest

Rate Level

Thei; general level of long-term
interest rates and yields has risen

substantially
not

is

since

likely

business

mid-1958

and

in

the

decline

to

In
setting, savings bank earn¬
on investments should aver¬
age somewhat higher than in 1958.
This should permit savings banks
expansion

of

1959.

this

ings

continue, their'traditional

to

poG

icy of maintaining a strong sur¬
plus position for the protection
of their depositors.
!■
v As savings banks grow in depos¬
its

and

in

nation-wide

expand their: investments
capital markets,

they are increasingly influenced
by national developments — economic;and political. * It is in thie
.

area

of national

problems

they

as

relate to

savings.banking, in parf
ticular, and the thrift industry, in
general, that the National Associa¬
tion has concentrated much of its

this past year.

activities

Wm. R. Sfaats to
Absorb Ellis Co.
LOS ANGELES,

Calif.—William

R. Staats &

Co., 640 South Spring
Street, members of the New York

and Pacific Coast Stock Exch'ges,
earnings and in interest, will absorb the investment firm of

Absorb W. C.

CORRECTION

.Looks Into

fore¬
projecton of the 1959-60
business outlook, in the May 21st
and

issue of the

"Chronicle," contained

a
typographical error. His pro¬
jection of housing expenditures
should have read: "will drop to

$19

billion"

and

not

$15

billion.

a

will be

of both significant growth
relatively stable prices. If this

year

and

realized, the na¬
tional economy could be produc¬
ing goods and services by the end
expectation

of 1959 at

is

an

annual rate, season¬

ally adjusted, of over $485 billion.
Before

is very old,

1960

should exceed $500

United Sees. Adds

CHARLESTON,

1959-1960

From all indications 1959

Dr. Gordon W. McKinley's

cast

Mail coupon




'

moderate

Bache & Co. lo

prospects.

free copy.

v

'

The

The

net inflow of

Kenneth
Ellis
&
watches, clay refractories, glass
Co.,
Phoenix*
fiber,* tires, greeting cards, office
Ariz., June 1, pending approval of
billion. As in previous years, the
the New York JStock Exchange.
machines, and flat glass. We al-'
savings banks paid out the bulk of
ready tjiave truck and bus assem¬
their net earnings in interest to
bly and I personally think we
depositors—nearly $1 billion, and
may get automobiles, ship build¬
the average interest rate per ac¬
ing, and aircraft.
count rose from !3.12% to 3.17%.

tuture

your

price sta¬
balance

a

indeed,"^be

can,

,

paid depositors.' Earnings in 1958
are
estimated at V/ell over $1.4

jliscusses

for

for

to

rate of growth appropri¬
both relatively full em¬

ployment and relative
bility.
Whether such

our

transportation and labor cost situ¬
ation: synthetic fibers, clocks and

—EDITOR.

progress and

a

paper

Puerto

'

NtEE

balances' necessary

products. W>R.
reflected noticeable shifts in sav¬
shortly open, an $8.5;
ings bank investment policies.
million plant exploiting bagasse
Most
impressive was the rapid
uses.
/■
<
increase in net mortgage acqui¬
Among those industries that we sitions to
$2.1 billion, compared
regard as prime new candidates with
$1.4 billion in 1957.
our

fast-moving, aggressively managed

maximize

feating inflationary forces,, and
bring into focus the prime) eco¬
nomic challenge of the day. This

permit

potential in the immediate
ahead. /' „ '<
• v;-':.

expanding ceding

will

for

This

an

employment, however, involve
dangers of setting loose self-de¬

been found to be usable for wall-

Grace

and

labor force. Attempts to

economic

eco¬

new

ice.

the most rapid. As recession gave
tic, Puerto Rico was becoming : a
major tuna packing center. And way to recovery, and the promise
the juxtaposition of fish packing-/ of new economic growth, unem¬
with Nebraska
Mills' new flour ployment still, remained disquietand feed mill, assure good profit ingly high in some areas and some
industries,, reflecting increased
opportunities to soya bean proc¬

sible

remitted from the base

are

and

full

our

high levels of achievement,
savings banking will have new
opportunities for growth and serv¬

on,:,

income in

profits

system

competitive

As the nation's economy goes on

among

ro.very

aredsl

m a ny

realization of

to the

and"!
of re-

record,
the pace

management

the possibility of

Federal

ourr free

the

be

shortest

debt

Treasury

These problems are a challenge td

•

has also proven

by

unemploymentjin

»highs.

m e

levels

prices;

deficits;- by
a
worsening international competi¬
tive
position;; and by continued

'?

all-

new

of common
possible labor-1
management disputes in steel and
other basic industries; by contin¬
high

further

to

»-

potential trouble
suggested by ^uncom¬

are

difficulties and

-

years.

contrary,

spots

ued

tr action-in

early 1958, the
economy
has

in 150

year

fortably
stock

From

contrasts.

severe

business

offer! This latest
postwar revaried possibilities in the field of
pctro-chemicals, which are) only cession, while
the deepest,
beginning
to
be
exploited
by
Union Carbide's nearly

the industry's best

year has operated in an economic
climate characterized by remark¬

oil refineries

bean. Our two

as

Savings banking during the past

Our textile plants turn out mil¬
help available were unskilled. In
of
yards
of " grey goods,
Pu erto Rico this picture has lions
which are sent to the U. S. for
changed. The company has all the
advantages of a foreign location, finishing, but could be finished
but it now operates With a fa¬ as profitably in Puerto Rico where
miliar legal and monetary system. huge quantities of finished- tex¬
There
are
no
exorbitant rents* tiles are needed—and now im¬
no
customs duties
on
American ported—to supply the large and
products in the stores, and no highly skilled apparel trade. ■;XV
Puerto Rico exports aluminum
worries about such things as de¬
valuation, expropriation, or civil extrusions throughout thd - Carib- •

fers advan¬

describes 1958

Other Opportunities

previous location, and the clerical

of¬

technique

Living costs for their
sky high in their

desired.

be

cable, and
left much to

facilities

air-travel,

ing shown in the possibilities for
basing international operations in
Puerto

that banking,

by end of 1959 $485 billion GNP at an annual
stable prices — which should exceed

—with relatively

rate

with

cially

utilized in

grocery

warehousing,

Public

year.

v

in*

Puerto Rico's Economic Development Administrator ticks off
currently growing investment opportunities in a score of different areas. He also briefly describes the direct and manifold

line

full

first

;

Savings Banks, N. Y. City

National Association of Mutual

Puerto Rico.
Our

Thursday, May 28, 1959

.

Outlook for the Economy and
Mutual Savings Banks

are

rapidly and there are
many of them
in grocery chain
operations as well as supermarOur
first
supermarket
keting.
opened barely six years ago; now
21

.

v.

:■

;

.

encounter

would

ample prospects.
Marketing opportunities

opening

.

'

V

ness

[

Financial Chronicle

;

(2410)

this rate
billion. r

This record will not be achieved
in

a

problem-free

economy.

On

GREENSBORO, N. C.—Eleanor

-Zone.

A.

Burch

with

has

United

become

Securities

Southeastern Building.

affiliated

*From
39th

Company,

a

talk

annual

Association

Atlantic

by Dr. Ensley before the

conference

of

City,

Mutual

N. J.,

cf

the

Savings

May 20,

National

investment

of

Waller C.

Hardy & Co. will be absorbed by
Bache ^ Co. as of June
A. Hardy

1.' Frank

and G. Herman Pierson

Resident Managers of

the

will

be

new

Bache office in the Kanawha

Valley Building. Waller C. Hardy,
will be Resident Manager of

Jr.

the

new

Bache Parkersburg office
Hotel Building.

in the Chancellor

I

j

Joins La Hue Inv. Co.
ST.!
Burk
Hue

PAUL,
has

Building.

E
staff of La

Minn. —Julius

joined

Investment

Banks,

1959.

business

Hardy

Va. —The

W.

the

Co.,

Pioneer

289

Number

5850

...

The Commercial and Financial Chronicle

(2411)

in Puerto Rico
far exceeded

fondest expectations!

our
1

'

"

says

X TATIONAL

1^1

nation's

VIDEO

a

,v

4

"• )

'-

1

<•

,

*

'

•

'

-

,

»s

*

*

.

,

\

*,

/

*

"

,

t

f

Asher Cole, President of National Video Corporation of Chicago

CORPORATION

is the

largest independent manufac¬

turer of television

operating

'

ff

Six REASONS

picture tubes. It has been

highly profitable subsidiary in

TO LOCATE A PLANT

Puerto Rico since 1953.

IN PUERTO RICO
"Sold"

on

Puerto Rico

on

the island, has far

1 .-High profits. The average profits after
''Our

operation

ceededour fondest

ex-

taxes of

expectations," says Asher

Cole, President of National Video. "We are

completely sold

on

Puerto Rico."

The Puerto Rican

average on

factory, named Rico

Rico

ponents for television tubes,. It ships the

used

by

,

„

assembled into tubes
number of the nation's leading

a

are

more

have

is

a

in

-■■'it

the

United

less than 115 additional U. S. firms are ex¬

pected to start operations in this booming
during 1959.

is running well
optimistic

If
c

the

,

and

per cent

of

affiliates is sixteen cents

manufacturers

Some

on

are

our component re¬

the sales dollar.

actually earning

sixty cents on each sales dollar from

quirements," says Mr. Cole.

-'no

taxation without

Federal taxes do not

of

Puerto Rican

more

exemption for ten

or

industry. Only genuinely

new

expanding operations qualify—never

runaway

plants.

3. Political stability. Property and invest¬
ments

are

protected by the Constitutions

of both the United States and Puerto Rico.

4- Excise
receive

tax

exemption. Manufacturers

permanent exemption on all raw

a

materials, machinery and equipment essen¬
tial to the actual

manufacturing process.

5. Abundant, skillful labor. Puerto Rico

operations.

has

a

Thirteen

Convenient plant site
one

per cent tax

years to new

their

cent profit average

Rico Electronics is

representation,"

apply.

'

now

16 per

vote

remarkable facts. The av¬

some

profits after taxes of new Puerto Rican

erage

depend on Rico Electronics for

seventy-five

talk to these manufacturers

profit potential in Puerto Rico, you

would learn

plant is now turning out as many as
now

you were to

about

eighty thousand electron "guns" a month.
"We

no

Congress. Conse¬

Commonwealth

ahead of National Video's most
.

,

Thus Puerto Rico is able to grant one

productive

Production has increased each year,

.

quently, in accordance with the principle
of

opened in Puerto Rico since 1950.

opened in Puerto Rico since 1950. And no

advance estimates.

,

w

x1 t

hundred

Rico Electronics' productivity

States

■

television manufacturers.

Workers highly

;

self-governing Commonwealth

than 500 factories that U.S. manufac¬

turers

.

.within the American Union. It has

President of National Video

Corporation, the largest independent producer of television-picture tubes in the U. S.
National Video's Puerto Rican plant is one of

I

components to National Video's (Chicago

is

Cole

Asher

double the

the mainland.

2. Ten-year income tax holiday. Puerto

;

.

Electronics, produces electron'"gun" com¬

plant. There they

four hundred U. S. factories

over

in Puerto Rico are more than

than 500

labor force of 637,000 workers.

per cent are

still unemployed.

6. No currency or customs problems.
New

factories that U. S. manufacturers have

Rico

shipping facilities are making Puerto
convenient than ever as a plant

more

-site for West Coast manufacturers.

Three

Puerto Rico is

economic

an

integral part of the U. S.

system. The dollar is currency.

No

passports are needed. Money, people

and

goods move to and from the U. S.

"

steamship lines now make regular trips be¬
tween
■

new

Los

Angeles and San Juan. And the

St. Lawrence

liveries to your

without red tape or

Seaway will simplify de¬
FOR FURTHER

Midwest markets.

Also bear in mind that Puerto Rico has

about

superb year-round climate. No cold snap
heat wave has ever been recorded.'/

INFORMATION

Rico's

advantages

plant site, write or phone to
Commonwealth of Puerto Rico,

as

a

Puerto

tariffs.

a

or
•

"

If you are

consider
Electron

"gun" component for TV picture

tubes, made by

National Video's Puerto Rican

subsidiary. "Quality of our Puerto Rican work
is excellent,"
says National Video's President.




looking for a plant site;, first

carefully all the points listed to the

right. You may then want to fly down to seef
the whole sunny
do it? You're

picture yourself. Why not

only

an

overnight flight

away.

Economic Development

tration,

Ave.,

Dept

New

CF-91,

York

19,

phone Circle 5-1200.

Adminis¬

666

N.

Fifth
Y. or

The Commercial and

8

Oil

Thursday, May 28. 1959

...

Recommendations & Literature
Monthly Investment letter
„

"V' S:-V

kets.

Jarrell-Ash

-

;

Also in the same publication are discussions of Air
and the Drug Industry.
Gold and the Capital Markets—Review—New York Hanseatic
Corporation, 120 Broadway, New York 5, N. Y.
How to Get Rich Buying Stocks—Dr. Ira U. Cobleigh—David
McKay, Inc., 119 West 40th Street, New York, N. Y.—$2.50.
5, N. Y.

in postwar years—
Beacon"—Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment
Expenditures in Japan for 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki

Japanese Stock Market — Study of changes
In current issue of "Nomura's Investors

Japanese

v

,

St.

.

& Co.

Regis

Sugars,

ciation

Co. — Memorandum—Equitable
Wall Street, New York 5, N. Y.
Standard Accident Insurance Company —

Texas Illinois

Street, Boston 9, Mass.

Henke &
Thomas &

Natural

Co., 135

Securities Corp., 2

f

of Philadelphia Summer
at the Overbrook

,

:

,

..

\

Co.—Memorandum—Robert W. Baird & Co.,
Avenue, Milwaukee 1, Wis.
Company of Canada, Ltd. — Analysis — McLeod,

Young, Weir & Company Limited,
Toronto, Ont., Canada.
.

and market performance- over a 20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
yield

a

York

Mawr, Pa.)
Philadelphia Securities Associa¬
tion annual outing at the Over¬
brook Golf

50 King Street, West,

5, N. Y.

•

•

Securities Co.,

June 26,

—

•

Inc., Adolphus Tower, Dallas 2, Tex.
Co.—Report—A. M. Kidder &

Black & Decker Manufacturing

Co., Inc., 1 Wall Street, New York 5, N. Y.
O'Connor, Inc., 115 Broadway, New York 6, N. Y.

York—Memorandum—A. C.

Allyn & Co., 122 South La Salle Street, Chicago 3, 111. Also
available is a memorandum on Iowa Illinois Gas & Electric

outing at the Columbus

ASSOCIATION OF PHILADELPHIA

INVESTMENT TRADERS

Investment Traders Association of Philadelphia will hold
37th Summer Outing on June 12, 1959, at the Overbrook

their

Country Club, Radnor Township, Pa.
William Radetzky of
Corp. is Chairman of the event, assisted by

June 26, 1959

New

bor

New

National
Associa¬
appointment of additional members of the

Tisch, Fitzgerald & Company, Chairman of the
Advertising Committee of the National Security Traders
Alfred

of Louisville: Jack A. Moss,

:

pany,

E.

Firm

Trading Markets i

.

K

J-*:'-

:

SECURITY TRADERS

The

Annual

New York

ASSOCIATION OF NEW YORK

Dinner

of

the Security Traders

Bowling League will be held June 4 at the Antlers, at
should be made with Sidney Jacobs, Sidney

26, 1959

(Philadelphia, Pa.)

Investment Association of Phil¬

adelphia

Country

fi. J. Mullen Jr. V.-P.

at

Club, Whit-

ford, Pa.
June 27, 1959 (Chicago,

Chicago
.

summer

HI.).,; ^

Traders Association
outing at the Wood-

ridge Country .Club.
Aug. 9-21, 1959

(a) Operating Utilities

Outing

Spring

Whitford
'

Association of

5:30 p.m. Reservations
Jacobs Co.

v

N. Y.
June

The Kentucky Com¬

Fifth at Liberty, Louisville 2, Ky.
New Orleans Security Traders Association: Donald M. Willem, :
F. Hutton & Company, 233 Carondelet Street, New Orleans 12, La.

1959 (New York. N. Y.)
Society of Security

York

Analysts, Inc. annual outing at
Westchester Country Club, Rye,

tion, announces the
Advertising Committee:
Bond Club

Club, Hewlett, N. Y.

June 26,

ASSOCIATION

(New York, N. Y.)

Municipal Bond Women's Club
annual outing at Seawane Har¬

Her¬

bert Beattie of H. A. Riecke & Co.
NATIONAL SECURITY TRADERS

Coun¬

try Club.

The

York Hanseatic

Century Geophysical Corporation—Review—Searight, Ahalt &

1959 (Columbus, Ohio)
Stock & Bond Club

Columbus

Co.—Memorandum—Dallas Union

Citizens Life Insurance Co. of New

(Hyannis, Mass.)
Association

Consumers Bankers

Atlantic States Sectional meet¬

ing, Wianno Club.

in the area served

American National Insurance

Tuxedo Park, N. Y.

June 25-27, 1959

Notes

Jtvi i9 JL 4mm

West—Booklet explaining in¬

Utah Power &
Light Co., Dept. K, Box 899, Salt Lake City 10, Utah.

dustrial opportunities

the Tux¬

York annual outing at

edo Club,

T

"•

'-.<■>>;;;

;

19, 1959 (New York City)
Investment Association of New

June

MCjlTA

Treasure Chest in the Growing

Club, Radnor Town-

ship.

,

5, N. Y. Also available is an analysis of Warner Bros.
Co., 36 Wall Street, New York

Hotel, Minneapolis).

June 19,1959 (Bryn

of stocks which should benefit
seaway—Thomson & McKinnon, 2 Broadway, New

Steel Stocks—Bulletin—Bache &

Lake, Minn, (preceded by
cocktail party June 17 at the

Nicollet

4, N. Y.

Pictures, Inc.

picnic

Bear

St. Lawrence Seaway—Survey
from the

38th

and outing at
White Bear Yacht Club, White

Gas Pipeline

Betts

Club

Bond

Cities

annual

•

Company—Review—Swift,
South La Salle Street, Chicago 3, 111.

Minn.)

':r Paul,

Twin

outing

Country Club.

(Minneapolis-St.

June 18, 1959

■ ■. -.

(Philadelphia, Pa.)

Investment Traders Association

110 East Wisconsin

Union Gas

Country Club,Rye,N.Y.

12, 1959

June

—

3Nf« YV

the

Bond Club of New
York Summer outing at West¬

Weil, La-

Analysis—Blair &
Incorporated, 20 Broad Street, New York 5, N. Y.
Sulphur Exploration Company—Analysis—Carothers & Com¬
pany, Inc., Mercantile Bank Building, Dallas 1, Tex.
Tennessee Corp.
Memorandum—J. A. Hogle & Co., 40 Wall
1STew- "York 5

*

at

Municipal

•

Co.

Street

outing

(New York City)

June 12, 1959

chester

Spur Oil

'

summer

Salem Country Club.

Memorandum—Fulton Reid & Co.,

Inc.—Memorandum—Howard,

(Boston, Mass.)

Boston Securities Traders Asso¬

Cleveland 14, Ohio.
Co.—Memorandum—Hirsch & Co., 25 Broad

Paper

Springs Hotel.

June 11, 1959

bouisse, Friedrichs & Co., 222 Carondelet Street, New Or¬
leans 12, La.
Also available is a memorandum on South
Shore Oil & Development Co.

first quarter

up-to-date com¬

Investment Dealers'

Street, New York 4, N. Y.
Southdown

New York City

parison between the listed industrial stocks used in the Dow;Jones Averages and the 35 over-the-counter industrial stocks
-used in the National Quotation Bureau Averages, both as to

—

Rosa,

y:^-y7rri

of 0anada

Inc., Union Commerce Building,

Stocks—7th annual edition of data on
22 selected companies—The First Boston Corporation,
15
Broad Street, New York 5, N. Y.

Milk

Express, Inc.

Roadway

-

1959 (Alberta, Canada)
Association
annual convention at

June 8-11,

'

.

Santa

Motel,

Flamingo
Calif. "

Incorporated, 225 East Mason Street, Milwaukee 2, Wis.
Co.—Memorandum—Chesley & Co., 105 South La

New York.

Bank Stocks — Comparison and analysis for
of 1959—Laird, Bissell & Meeds, 120 Broadway,
New York 5, N. Y. Also available is a study of the economy
at the first quarter's end.

s

Richardson

Chicago 3, 111.

Francisco,

Calif.)
San Francisco Security Traders
Association at the Santa Rosa

Banff
.

^

Life Insurance Company

Over-the-Counter Index—Folder showing an

N. Y.

Co.—Memorandum—Francis I. du Pont &

Co., 1 Wall Street, New York 5, N. Y.
r
Drug and Chemical Company—Analysis—Loewi

the Sleepy Hollow
Club,
Scarborough,

June 5-7, 1959 (San

Broadway, New York 4, N. Y.

Salle Street,

1959 (New York City)
annual

Country

Bottlers—Analysis—Hill, Darlington & Co.,

Reliance Insurance

Knollwood

the

at

day

field day at

& Gas Company. •/-

Rcxall

Stocks—Current Information — Yamaichi Securities
Inc., Ill Broadway, New York 7,

Stocks—Analysis—du Pont, Homsey & Company, 31

Com¬

CoM 29 Broadway, New York 6, N. Y.
Pullman Incorporated—Analysis—Peter P. McDermott & Co.,

Company of New York,

Oil

Milwaukee
Michigan Street, Milwaukee 2, Wis.

&

42

(Chicago, III.)
of Chicago annual

Bond Club of New York

Dept. L, 40 Wall Street, New York 5, N. Y.
Philadelphia & Reading Corporation—Analysis—Schweickart

TYaffic Control, Fluorine,

i

June 5,

...

Miniaturization—In current issue of "Science and
Securities"—Harris, Upham & Co.; 120 Broadway, New York

of the Steel Industry.

Company—Analysis—Hancock Securities Corpora¬

Pepsi Cola United
'•

Electronic

Cement Co. and a survey

field

Corporation—Report—Dean Witter & Co., 45
Montgomery Street, San Francisco 6, Calif.
Also available
are reports on Bullock's Inc., Marquardt Corp., and
Signal
Oil

Club

Bond

Club, Lake Forest, Illinois..

tion, 79 Pine Street, New York 5, N. Y.
Jefferson Electric Company—Report—The
pany, 207 East
Pacific Finance

golf

Club

June 5, 1959

Street, New York 5, N. Y.

48 Wall

.

.

Co.—Memorandum—R. W. Pressprich & Co.,

Insurance

Home

Basis

v.'-;

Street, New York 4, N. Y.

— Burnham and
York 5, N. Y. Also avail¬
V
Canadian Bond Market — Review—E. M. Saunders Limited,
Victory Building, Toronto 1, Ont., Canada.
Canadian Steel—Analysis of Outlook—Ross Knowles & Co.,
Ltd., 25 Adelaide Street, W., Toronto, Ont., Canada.
Dynamics of Savings—Discussion in "Business in Brief"—The
Chase Manhattan Bank, 18 Pine Street, New York 15, N. Y.
Also in the same issue are analyses of the Housing picture;
Stock Market in perspective, and income and consumer mar¬
—

Company, 15 Broad Street, New
able in current Foreign Letter.

(Detroit, Mich.)
oiiting at the
Lakepoint
Country Club,
St.
Clair Shores, Mieh.
1959

May 29,

analyses of

Co.—Report—Hayden, Stone & Co., 25 Broad

Grace &

R.

Investment Field

In

Broeck & Co., 55

Gestetner, Ltd.—Review—Alfred L. Vanden
Liberty Street, New York 5, N. Y.

literature*

EVENTS

Meeds,

Corporation—Analysis—Reynolds & Co., 120

Broadway, New York 5, N. Y. Also available are
the Prophet Co. and General Portland Cement.

W.

Burnham View

& Co.,

New York 5, N. Y.

Motors

General

the firms mentioned will be pleated

tend interested parties the following

to

COMING

Products.

Copperweld Steel Co.—Memorandum—Hemphill, Noyes
15 Broad Street, New York 4, N. Y.
Eastman Kodak Company—Analysis—Laird, Bissell &

Dealer-Broker Investment
it it understood that

Ill Broaldway,
Also available is a review of Universal

New York 6, N. Y.

120 Broadway,

I

.

Equipment—Review—Ira Haupt & Co.,

Clark
,

i

Financial Chronicle

(2412)

(Charlottesville/

Va.)
School

of

Consumer

•

Banking,

University of Virginia.

(b) . Natural Gas Companies
Transmission, Production
& Distribution

Of Trust Securities

F«r the

BOSTON, Mass. —Ralph S.

MUNICIPAL BONDS

Henry, President, Trust Securities
Corporation, 80 Federal Street, has
announced the election of George

of

WEST VIRGINIA

VIRGINIA

Jr. as Vice-President at
the annual meeting.

SOUTH CAROLIN

Security Dealers Association
4CO

Trinity Place, New York 6, N. Y.

HAnover 2-2400




Te)el}Ve NY 376; 377; 378

BUFFALO, N. Y.—S. D. Lunt
&
Co., Marine Trust Company
joined Trust Securi¬ Building, members of the New
ties
Corporation in March, 1958 York Stock Exchange, announced
and
was
previously
associated that Oliver A. Weppner has be¬
with the Second Bank-State Street come associated with the firm as
Trust Company, Boston.
In addi¬ a financial consultant to institu¬
Mr. Mullen

Troster, Singer & Co.
74

duties, tions and corporations. Mr. Wepp¬
prime ner was formerly Senior Viceresponsibility for the distribution President and Senior Loan Officer
of
the
Trust's
shares
in
New of The Marine Trust Company of
tion

RICHMOND, VIRGINIA

S. D. Lunt & Co.

J. Mullen,

NORTH CAROLIN

Members New York

Oliver Weppner Joins

to

his

administrative

he will continue to have the

England.

Western

New

York

Volume

189

Number 5850

.

.

The Commercial and Financial Chronicle

.

(2413)

Advises Recourse

Psychological Effect of Changes
j
In 0. S. Gold Reseives

;

f

^

outflow should reduce the gold
reserve below the present statu-

tory minimum, a devaluation of
the dollar would become inevi-,
Monetary Fund table. There is nothing sacrosanct
called upon to grant about the present statutory mini-

be

would suffer in the-unlikely, event
a dollar devaluation,

of

it is onlv reasonable to

cease

™d

the

member

far

for

the Fund's resources for

the American authorities would
deferrinl show their willingness to lower it
enlisting

adjustment made necessary by
fundamental disequilibrium. But
there would be every justification
an

some way towards discouraging devaluation talk,
Counsels

in face of
a
speculative exaggeration of an
outflow of gold due to American
foreign aid.
t+

course

,„„tj

.

t'a^t

the

etiological
in

Foreign

Practically
and

is

gratitude

government

every

Central

world

,

Governments

Bank

under

to

of

uniavoiable

effects

of

connection

the

TT

of

unprecedented

s;

x

.,i

free

debt

United

what

thev

of

an

treasury

a

pntirpiv

8enerol"tv
scnerosuy.

It

is

-n

is

or

maintains the

dol-

wromrfv«nn

Central

a

same

Bank

proportion of

dollars to gold as hitherto. But
American opinion has
every cause
to resent any panicky conversion
of

dollars into gold.}

States.

was granted

war

the loss

with

the

deep

the

way towards American assistance
psy- since the
with

th*

e
mitigating

cold

a.

^

leaving

should, go

a

taking that

AmericanTubliewSl re!
Xfch eountriJ have

mum, and its reduction would be remained lnval in fnno nf
an infinitely smaller evil than a present artificiallv stimulated
There would devaluation. The mere fact that
scare and

untenable position.
be no justification

for

assume

that the United States, authorities

assistance to support the dollar, it
would not be bolstering up an

dollars at expense of our gold reserves as a
tion for aid extended and out of common

>

to

were

redeeming U. S.
token of apprecia¬
sense.
Dr. Eipzig
attributes the gold outflow to artificially stimulated dollar scare
(not to the recent reversal in our export-import trade) and to
our political decision to disregard foreign aid's effect upon our
balance of payments.
The London writer "suggests two steps
to offset psychological effect of any fall in our gold reserves
below $20 billion; viz., adopt lower reserves ratio in preferableness to devaluation, add to make clear recourse will be
made to IMF to protect the dollar against speculation resulting
from exaggerated notion of gold outflow due to foreign aid.
counseled to

are

IMF

International

By PAUL EINZIG

Foreign governments

to

The decline of the gold reserve
is not therefore caused by
any
fundamental disequilibrium. If the

9

;

Foreign treasuries and Central
Banks

their

could

gold

and

■

-

should

meet

requirements', not at

the expense of the U. S.
gold re-

!S,S,JEStflSJkS:

not t0° much to ^Pect the treas-

resouiTes^of^the ^und^if0

JvieS ancL^en*raj ?anks °£ the |vallaWe^n^hcf coldmaricet^It
doing anytWng^tat" woSd a^ ls essential to maintain and in"

LONDON, Eng.—The decline of Administration has decided
the
the gold reserve of the United against that solution, and foreign
^United States Treasury were to
States continues at an abnormally aid is to continue on a very sub- make it quite clear that, if necesBut for this the
high rate. The weekly announce¬ stantial scale.
sary,
it would not hesitate to
United States would not be losing dra'w
ited
ments of fur¬
and

draStieTfliat

"

ther

substan¬

tial

in the balance of pay- Fund were to make it quite clear
i,
unci vvcic io jiniivc li qu«e near
they would merely be that it would be willing to place
gaining gold on a reduced scalei. -its resources at the disposal of the

change
ments;

causing
growing con¬
cern. r-.;; -V:

,,

..

It

is

to

At the time

attribute

Sffig'SL
the

of

that

crease

is still

happening

above the $20
billion
mark,

States

is

that

continue

to

the

snend

on

for-

present rate
it

payments

would

not

take long be¬
it would
decline
that

Haul

below

flow

figure.
psychological

And

the

of

effect

the first announcement of the gold
rocorvo

Koinr?

in

being under $20 billion is
likely to be considerable. There is
reserve

also

for

cause

probable

concern

about

psychological

that

accounts

re-

is

sponsible for part of the gold out-

Einzig

is

not

the

result

the

of

operation of economic forces but

of
1

to

a

political decision to continue
i>

1

spend

011

_•

important
important

helpfi
neipiui.

d,olt1f amount of
would,b®
of the

Prefers Lower Reserve Ratio
Annfhcr cfcn

hpart

? 15

nrmiri uccfniiv

authorities

foreign aid.

indication

an

that would enable

main

serve ratio if this

should become dollar

American assist-

altogetJ1®1 from any grati-

i.;

if

1

source

of

future

reserve

assistance

All holders

On June 1

of

cease

reasonably

may

to be

i

.hi-

ceivable

i-1n

_-i.n-.li_l

1

potential

losses

L.

limited partner and
a

general partner in

-

they the

Salomon

& Co., 29 Broad¬
New York City, members of
New York Stock Exchange.

the

effect

of

the decline of the

reserve by some
billion in connection with the

$1

increase

the

of

resources

the

of

This

annou ncem en

t is neither an

Bonds. The

International

the

Monetary Fund in
future. Even though that

near

transaction

will

increase

amount of the American

the
M

resources

onetary

would find

Fund

for

the

Fund,

$75,000,000

most people
imagine
to the

application

assistance.

To

do

so

admission

an

is

Consolidated Edison Company

of

tions.

there is 110 reason
United States, like any
other member country, should not
mqke full use of the Fund's re¬
sources
in face of a speculative
attack against their currency. The
Fund is supposed to exist prima¬
rily for reinforcing the defenses
of currencies against unwarranted
speculative attacks. Any pressure
on
the dollar due to anticipation

of New York, Inc.

reality

the

its

of

-

quota in

weakness which itself would pro¬
duce adverse psychological reac¬
In

.

of the International

considered to be

why

offer to sell nor a solicitation of an offer to buy any of these
offer is made only by the Prospectus.
;
\
'•

AttcA

it difficult to

American

an

A'

devaluation

comes

First and

Dated June

Refunding Mortgage Bonds, 5Vs% Series P, due June 1,1989
Due June

1, 1959
Interest

1, 1989

payable June 1 and December 1 in New York, N. Y.

well

within the scope of this definition
of the Fund's purpose, unless the

fundamental

is due
disequilibrium.

to

'

of Payments

pressure

Says

Balance

Price

101.15%and Accrued Interest

Is Sound

'<

Much

has

been

said

in

recent

months about the deterioration of

American

the

balance

of

pay¬

Copies of the Prospectus may be obtained in any State from only
such of the undersigned as may legally offer these Bonds in

owing to the .increase in
the
cost
of
production in the
United States. Beyond doubt the
wage spiral is in full operation
there as in Britain, in spite of the
extent of unemployment. Ameri¬
can
industries have been out-

ments,

compliance uith the securities laws of such Stale.

MORGAN STANLEY &

priced from some foreign markets,
and
have lost ground
even
in
domestic

perennial

markets.

But

American

pluses have been one
economic

then

the

export sur¬
of the major

headaches of the world

BLYTH &

CO.

EASTMAN DILLON, UNION SECURITIES & CO.

CO., INC.

HARRIMAN RIPLEY & CO.

GOLDMAN, SACHS & CO.

GLORE, FORGAN & CO.

Incorporated

f

during the past 40 years. The ab¬
sence of such surpluses is not by
itself a major disaster, so long as
the United States is in a position
to balance their international ac-

KIDDER, PEABODY & CO.

LEHMAN BROTHERS

SALOMON BROS. & HUTZLER

MERRILL LYNCH, PIERCE, FENNER & SMITH
Incorporated

SMITH, BARNEY & CO.

'Counts.

STONE & WEBSTER SECURITIES CORPORATION
See Cause in Foreign Aid

present the United Slates
easily balance their ac¬
counts simply bv suspending for¬
At

could

eign aid.

Rightly or wrongly the




.May 27, 1950.

.

Benjamin Marks will
a

will become

would be far in excess of any con

J

"V
.

way,

i-

import

F. L. Salomon Partner

many experts are inclined to
believe
that
if
continued
gold
ri

It^to

*&*■

ections.

hlafy g^ld withdrawals^s^hings expect that future American aid
.1!

the

alto^the/foom Iw' eraM* directionf^ ^ be applied in

F.

are

enable

Now^is the time to show that
the much hackneyed phrase of

S/is itlT to ' ^1?^

of

toto-

exports by the granting of credits
aits

£ mere fraction

their willingness to lower the re- to the free world.

1

v

is

not
not

[old
Soviet Union to reduce-its gold

" "fonUvaWe fo^es thafhS

"before 'the

The net deficit in in-

ternational

fore

effect

r^ervL

<*
be very

eign

the

at

that"

to

is

converting

eoid

is

United

aid without regard to the
adverse change m the balance of

but

reL^ek into

United States. A public announce-

gold ment

writing the

reserve

jg j^Qf u-jq moment for

i

outflow

crease the- amount of such free
gold. From this point of viewthe

the

Kgjfd SoVSio'uM

any

declines

are

of

S

upo7those Testes,

The Commercial and Financial Chronicle

have

which

their

Babies and Marriages

Make
Land Companies Attractive
By

Land

companies

as

at

growth

stocks

receive

Thursday. May 28, 1959

.

inflation
should be good "land stocks," that
is stocks of companies with large

holdings. The Federal Gov¬

land

ernment

can

it

the

Any

the

money

corporation
can print more

each

when

cates

it

is

creased

a

from

Roger W. Babson

in¬
total

is not real land.)

why

recognized

now

do

advise

I

buying

in

be

land

1/1000% by realtors
do so by pumping up sand
the adjoining water but this

But,

has

each

age.

Relation to Population
much

the

about

others.

Of

all

company"

the

to

marriageable
popula¬
Although the birth rate is

falling slightly, (it is now 24.5 per
1,000), and
the
marriage
rate
dropped last year to 8.3 per 1,000,
and

deaths in

1958 were only 1,yet those who are ap¬
proaching marriageable age are
constantly increasing due to the
baby boom of 20 years ago.
The

674,000,

investor
those
age.

is

who

most
are

interested

in

reaching marriage

The experts expect 5 million

babies

in

1960

and

6

million

the

from

vegetables

considered

it

only

I

say,

in

before

Yet

it
be

truth

to

that he
popular

found

ally

stocks

listed

on

Such

the

companies
In fact,

I have heard of one land company,

listed

on

the American Stock Ex¬

change, which is said to have only
three employees. Even those rail¬
roads

the

like

Canadian

Pacific,
Pacific, and the North¬
ern
Pacific, which have great land
holdings, are practically free from
strikes.
Even during a strike on
the Union

of the railroads its land hold¬
are

the property.

was

I person¬

most interested

in water

on

am

increasing in value.

that

haps by

Bargerow

three

Slave

Great

and

He

plan

a

rose."

But

from

such

land

accomplished

expand with the national increase
in babies.
This grazing should
pay taxes and other expenses. But
the great gamble about any acre¬
age is that at any time minerals
such

as

uranium

may

be

found,

fuels such as oils or gases, or
other underground products. This
or

especially applies to timber land,
which
is
constantly
becoming
more
valuable.
Land companies

BOSTON, Mass.

offices

with

to engage

Officers

in

are

80

at
a

—

has

Inc.

committees

is

and

bert

Edelson, clerk.

press

in

preserving the

Russians
us,

they

were

James

six

years

But

Mr. Alcock is

critics,

proprietor of T. R. Alcock & Co. '

announcement

not

maintained

the

according to his Democratic
American prestige was
low

so

abroad

Dulles.

Over

it

as

was

Europe signs

prevalent "Yanks go home,"
Latin

in

America

they spat
at our Vice President, and threw
rocks and eggs at him.
Somehow
or
other Dulles was responsible

appears as a matter of record, oil)
are

than

more

being offered- publicly.

for this.

that the

should learn from

we

thing happened af¬

same

Before this

ter World War I.

$50,000,000

after the First World War he had

subjected to

nities

SPIEGEL, INC.

that

again would
war

5Vi% Notes due July 1, 1979

World

that

never

enter

a

add,

%

Foreign

correspondents newly
arrived in Washington are amazed
at the way we

investor has been

an

Department

instit utional

State.

criticize

and

our State
Secretary
of

Before

they are here long
they, fall into line and are criti¬
cizing him, too.

arranged by the undersigned.

We like to tell

jokes

on

tell how they stumbled
on this matter and that.

Wertheim

&

-

May 28, 1959




officials,

their feet
We

never

take up for our foreign offices
foreign correspondents do.

Co.

as

Foreign correspondents are in¬
variably the agents or allies of
their

respective

embassies.

foreign correspondents are in¬
variably critical of their embassy.
an

issue

between

business

Florida for

has recently been

years

Vice-President of Pierce,

Garrison,

Wulbern, Inc.

Form

..

Warner, Jennings

Mandel & Longstreth
PHILADELPHIA, Pa.—Warner,
Jennings, Mandel & Longstreth,
of the New

members

will

Exchange,

Stock

York

be. formed

as

of

June 4th with offices at 121 South

Broad

Street.

maintained

branch

A

in New

will

York

be

City at

Broadway.
of

Partners

David

be

nings,

the

John

E.

Jen¬

Liberman, Jr.,

Herman N.

members

firm will

new

Warner,

of the New York Stock

Exchange, Raymond Mandel, Mar¬
tin L. Longstreth, and Fred Bacher,

general

Levin

and

partners, and Martin
Sagner, limited

Alan

partners.
Liberman

Herman

hf

New

N.

is

a

Liberman,

partner in

Jr.

& Co.

which will be dis¬

York

solved June 3rd. Mr. Jennings was

formerly with Reynolds & Co.

Horner Barksdale Go.
Formed in

foreign

and

Lynchburg

LYNCHBURG.,

Va.

Horner,

—

Barksdale & Co. has been formed
with

offices

Life

Building

the

in

First

Colony

under¬
distributors and dealers
general market state and mun¬
icipal bonds.
Officers are Edwin B. Horner,
Jr.,
President, and Williani R.
Barksdale,
3rd,
Secretary .and
Treasurer.
Both
were
formerly
to

act

as

writers,
in

with Francis I.

du Pont

&

C'9. in.

Lynchburg, and prior thereto tvith
Scott, Horner & Mason, Inc. -

Livingston, Williams Adds
(Special to The Financial Chronicle)

CLEVELAND.

But

our

In

many

We entered the

1

Private placement of these Notes with

invest¬

ment

in

European

War, I might

without my vote.

beerji in

the
McClure

C.

indig¬

swore

we

with his vote.

Second

.

he

many

so

Pres.;

-

cor¬

respondent could get out of France
been

has

Louis

Mr.

The lesson

these incidents is that foreign na¬
tions are ungrateful.
We forget

Mc¬

Treasurer. Mr.

111

never

and

these securities

for

us in
said. The

peace.

were

This

press

that

under

and

the

Dulles

The

outwitting

ahead of

way

so

remains

peace.

always

were

propaganda,
fact

trying to catch

mistake than they

some

C.

and

he

whom

Ofare

c er s

Vice

true

was

commentary
on
the
that they always

a

Dulles in

Jr., Secretary; and Al¬

Treasurer;

before

seemed more to be

were

Alcock,

W. Brown,

This

them wrong.

American

Street

President

engage

securities

MfcClure, who

had not said that at all.

Diversified

R.

to
a

Dorothy I.
Ward, Secy.-

They used to think
they had him /nailed down on
something he; had said and he
would prove every time that he

securities business.

Thomas

shington

in

Clure, Pres.;
G.C. McClure,

would appear.

been formed

Federal

English

Louis

It

Securities,

501

f i

of

Form Diversified Sees.

should

of¬

at

Wa

business.

now

income

with

fices
St.

master of the

a

with members of Congress.
He used to exasperate'members

riage rate continues upward, pro¬
ductive
land
should
constantly
increase in value.
1

Although much western land is
good only for grazing, yet the

was

prove

whatever may

by more irriga¬
tion and whatever happens to the
stock market, so long as the mar¬
be

formed

say later he had said one thing he
would produce the manuscript and

Drive,

If properly ac¬
reasonable cost, it
could make these states "blossom
a

been

They use a language, of
hyperbole; at least it is not exact.
Dulles always used just proper
shade to convey his meaning and
when his detractors would try to

turn this water southward into

like

has

guage.

the United States.

complished at

Co.

language and I think this, too, was
annoyance to the press.
They
not accustomed to precise lan¬

flowing north and are wasted
in the Arctic Ocean.
Mr. John W.

to

TAMPA, Fla.—Louis C. McClure
&

are

now

a

(Special to The Financial Chronicle)

reason¬

justice of his cause.
could have got along

he

the allotted

an

the above states.
These
millions of gallons per second are
irrigate

Powers,
401
Yorkshire
Homewood, Alabama, has

the

and

occasionally.

to

a

score

better had he shown some temper

of

southward

Canada,

lakes

board

I think the old

Opens Own Inv. Go.

.

He was so cock¬

himself

of

Maybe

ico, and Arizona a most spectacu¬
lar project is the "Powers Plan"
of bringing water from the Great

then

and

LonisC. McClure

could

always

he

ableness and

Colorado, New Mex¬

aides

when just past
and ten.

down
Carlisle

seemingly

sure

sun rays.

his

was running away from old
which would make it all the
more tragic that he was knocked

outwit the press.

wells powered by gravity or per¬
For Utah,

endur¬

age,

say

;

his

at

man

not

irrigated.

was

be¬

Fly in one day from Korea
stop at the airport and talk

with

the

This

*

marvel

plane for Europe.

so

would

barren sand

to

used

ance.

often.

come

Desert

California.

of South Central
was

Mohave

former

sell them, at home.

and

was

nights

only did he have to sell his

nis first problem, it seems, was to

the

them

sleepless

many
of it.

policies to the foreign nations but

often

as

he

saw v

why the marvelous

is

lettuce and other

Northern

exchanges, the "land
stocks are freest from

employ very few people.

increased
tion.

can

be poison to you.

troubles.

labor

ings

due

the

York

New

to

1960's

which

state

Freedom from Labor Troubles

one

the

This

ucts.

Bear

business boom which is supposed
in

a

advantages over
What climate is best

for me, may

come

suffering from

some

the

of a land company instead
buying acreage in fee? The an¬
swer is very simple.
If you your¬
self buy the acreage, you must pay
the taxes and watch tne property
personally. If, however, you buy
the stock of a good company, the
taxes are paid by the company
and you have no details to watch.
Furthermore,
such
listed
land
stock is easy to sell; while consid¬
erable red tape and looking up of
titles are necessary if the property
is in your own name.
Hence, I
prefer certain land stocks to acre¬

hear

the

giving

as

.

of

/

are

"guarantee" a long and healthful
life
Personally, I like New Mex¬
ico or Arizona as health resorts,
but
all states are different and

stock

Readers

people

-

his more than six
in the State Department in
this atmosphere and he must have

avail¬

to

press
as

wonderful

most

Dulles spent

Not

State

as

able

correspondents

our

the foreigner.

years

cause

Manyv with them. He
bursitis,
arthritis, ? and
various plans for further local irrigation had an unfailing courtesy but the
forms of rheumatism.
Therefore, are being made to adopt power
press took a delight in needling
a
first requirement
is that the from uranium, oil, or gas to be him. This was because, I think,

perhaps

who

older

the

of

was

towards

spent

Secre¬

tary

they pro¬
prod¬

gin lands are irrigated

lean

never

No

diplomats,

our

a

seemed to tire.

and

and brooks
Hence, when such vir¬

and rivers.

duce

He

rains

the

man

a

man.

younger

yet in the soils. They
been drained into the

by

see

Dulles'

have

exhausted

are

not

oceans

A dry climate, with

most relief to those

more

be

have

states—

normal variations of temperatures,

(This

may

which

for

hungering.

Irrigation

vitamins

the

that

means

to

Foster

would

minerals

tragedy

a

John

vitality
knocked down so suddenly.
His
activities as
Secretary of State

land today is await¬

Most cheap

Arizona,

and

Colorado,

is

It
of

ing irrigation. The fact that these
sandy and barren lands have had
so little rain during the centuries

including Florida,
Southwest
including
New

mate

(and I say this
reverently)
only God can
land.

healthful

Therefore, put more
into land and less into the

when buying a home.

Possibilities from

stocks

together with parts of the Pacific
Coast.
Such states offer the cli-

desires. But

make

most

By CARLISLE BARGERON

year.

house

Southeast

Mexico,

certifi¬

stock

the

to

en

Ahead

Washington
of the News

worth more

become

should

money

people retire on pen^
attention is being giv¬

more

The

prices of the stocks.

land

directly affected by mar¬

more

sions,

Bonds and all
wishes.

not

are

As

Gov ernment

the

The great majority of

From

be
the

double

day a house is completed, it usu¬
ally begins to deteriorate and the
house becomes worthless, but the

riages; but the demand for houses
and
furnishings
definitely
in¬
creases as the marriage rate rises.

the

all

print

1965.

are

But

for income.

could

which

market

Babson's

Mr.

resources

discoveries may

time

any

made

ROGER IV. BABSON

The best hedge against

of

.

discovered

yet

not

underground

investments

not

highest honors. He prefers purchasing such issues to buying
land directly, and suggests home owners place more money in
land and less in a house when buying a home.

so

.

(2414)

10

Ohio —Doris

E

Noble has been added to the staff
of

Livingston,

Williams

Inc., Hanna Building.

& .'Co.,

Volume

189

Number

5850

;

.

The Commercial ancl Financial Chronicle

.

(2415)

(a«

Mamam

wm

*j;

avvfl*

noil-bank

«mJ

Villi QOK 101 monev SllCl ISclllKlIHf
at«vnv; HH1K
ivi

y.

demand

By GEORGE CHAMPION*

fj!

limited, cent developments

are

?UJ? re ytupon the commeretel tlon are n°t
banking ^system as residual buy- money supply
•fiC'+"

?

N. Y. banker considers it within the overriding problem of the

can

and will

$2.4

decisions

on

monetary, fiscal, and

Business Loans

economy's potential for inflation. Mr. Champion's finding of a
tight money market ahead, which may get tighter, is supported
by diverse array of evidence culminating in the observation

Over the past two months there
have been clear signs

k'H "
I.

and banking outlook out of context,

money

.

•iiiTlV

,i/fw

...

,

and

terest rate

,

.

.

stronger monetary restraints later this

-uiCzd

'picking

.

inflation—supported by overly rapid increases
deposits—saps even our international eco¬
nomic position. The banker sees need for Congress to lift current 4V2% ceiling for new
government issues and expects

-.

in bank credit and

I

.

<

-

,;

..

Whether the in-

year.:

keeping

'■'! Hi"-'.-

up,

hanks
ha_ve not yet felt the full
.etfects., It is true that.some ol
that borrowing may reflect tem'porary buildups ol steel or other

tin;

be

»:> ?Pecwl viewpoint oi a banker, but business
ho

it

has

always seemed to

in'the financial

markets

o

m

.

ore

'varied

it

•

cum-

•

fluences

One
of

icit

as

new

task

tremely

that

the

records,

hanciiw

Treasury's

will

difficult,

fi-

remain

with

ex-

repercus-

throughout the credit

interest

kets.

But

there

are

rates

ll'K flue need

not

'[j.only by the
Champion

George

current state
-of business,

r

The

?

Treasury's

.

.

.

S

,

thst

J*

ttae
2

in

mahv

iYu

p

policies

on

Jd

our.

tion—problems

1

ieb

oi

other

inai

of gold last

ex-

posi-

touu

-but also by our expectations.

1959

In-

fluctuations

be

may

billion.

very nature,
are
a
link " to the future.
They
cannot fail to reflect our
^cannot fail to reflect our hopes
and fears for
^and fears for tomorrow, or next
or next
-ononth, or next year. That tesson
Vfwas driven home to all of us by

the

order

of

$7

needs are mounting.

ithe

"" Thus

?' 01

ih

m

r

~

,

.

,

gomery

are fac-

and

';;Pac?b b
cycie.

s^age

•

;

of

the

business

v;

,

-

!:•-

price

the

.

"slowing,

man-

„

in

deDosits.;

trend

a

„

.

felt

hv

oeriovm

savings

nroblem

Partners

..

The

theme

verv

o f
founding

the

^/wen S promise to^make foreign competi5?Sei,,^n
wage structure^—a continuing, and

by
2 hoticeable
nntieeable
•
the, growth in savings

•

,

an¬

in 1919.

promise to make foreign competi/tion—based
on
a
much
lower

(been-limited
.

s

,

••
..

in

firm

Albert

are
■

E.

Schwabacher,
E^war(5
.

-maa

Hell-

Heller,

wprhprt

T

77

i'

r

*Punn»

A.

Joseph-

Schwabacher

E.

Robinson,
that
.pwai

the
me

outlook
uuuwiv

for

medja-

and

money

tions.
nuns.

The
j. nc

rapid

in

recovery

ancj

new

Albert

homes—as

the

business

MSaps Our Gold

banking cant be considered apart -profits and1 rising depreciation alexpansion
proceeds.
And
the
the overriding problem be- lovvances made that
possible—but [higher market rates |Oil
t
|on
short.fore our whole economy—the po- far from
easy.
The recent per- t^rm naper are diverting
potential
tential for inflation.
More than formance of the market and the
foreign or other time deposits
Pne;
baf appeared,that ex- level of- rates testify to that! from the banks.

dur

from

„

^

a

,4

V
market psychology

of

action

the

stock

short-term securities.

market

ore

Those birds

home to roost

coming

the

in

,

c

,
,

'y over recent months could, I supu"And it may not be without significance that some fringe
investment areas—farm real estate, and
*

works* of

even

art—are

in

creases

the

in-

^years ahead.
Closer to my

topic,

with

concern

inflation may provide a good part
of the explanation for the collapse
*■' of the bond market last
summer,

'U and the further

! recent

rate

in

increases

months.

Already,
yields on intermediate and longterm governments, running up to
"'-*
4.40%, have moved well past the
;ibhighs reached at the crest of the
more

'-v

boom

in

Last week

1957.

corporate issue
—as high as at

was

any

a prime
sold at 4.95%
time since the

constant

almost

an

t"

Steel

of

One

the

of

ahead

without

upon us.

the

tests

inflation

the

of

to

economy

I refer, of

*

-

-

move

is

course,

n

\v

to the

negotiations in the steel indus-ry.
n:. Others are in a better position
than I to

assess

bargaining

"u

as

well

Suffice

it

to

for
as

the price of money,
the price of goods.
„

An equally

revolves

budget

/

the outcome of the

process.

Say that the final settlement, for
better or worse, will have implications

vital set of decisions

about

the

I personally

Federal
hopeful

(

am

®ddress,by hjr* Champion before
meeting of the National

the 43rd annual
Industrial

Conference

City,

2i,

May

the

ie-

1959.

Treasury's

free

world's

But that

Shoemaker, James F. Rafl'erty,

^^arence

E,

Heller,

w

,

.

money

Stanley E. Simons.

to seven
branches in California has offices

by overly rapid increases in bank
credit, and deioosits—would sao at
credit and deposits—would sap at
its vitals. Let me say here that I

.

SUppiy 0f the country. Re-

New York City and Salt Lake

in

City.

t

d

x

No Shortage of Investments
1

wish

that

I

could

This announcement is neither
7

foresee

a

,

clear prospect for pushing a really
significant amount of that short

debt into longer maturities, as the
Treasury itself so ardently desires.
But continuing heavy competition
from
other
borrowers
limits the possibilities.
In particular, the spurt in home building is already generating a huge
volume of new mortgages, and
slafe and local borrowings aopear
headed for new, records. At the
same time, further slackening in
tne pace of corporate offerings, as
happened in the first quarter of
this year, seems hardly likely. In
consequence,
institutional inves-

an

offer to sell

nor a

solicitation of

an

offer to buy

any

of these, securities.

The offering is made only by The Prospectus.

;

-V-v"

NEW ISSUE

.

..

\

May 26, 1959

•

,,

v

Board,

New York
"




wiR

be

looking to

$14,000,000

„

West Penn Power
First Mortgage Bonds,

'

Due June

-

Company

Series R, 5%%

1, 1989

Price 101.93%

(plus accrued interest from June 1, 1959)
;

[
Copies of the Prospectus

addi-

squeeze

undersigned

tional

Treasury bonds into their
portfolios. : In fact, current markets clearly indicate that, if the
Treasury is fo compete in the
market at all, it will *
have to ask Congress to lift the
current 4J/4% ceiling for new is•

,;

•

,•

.

as

are

may

be obtained from only such of the

registered dealers in securities in this State.

r

W. C. Langley & Co.

long-term

sues.

,

.

ill, Noyes & Co.

Paine, Webber, Jackson & Curtis

<

,

Current prospects in the short-"

Stone & Webster Securities

term

area are little more inviting,
Corporations are likely to be in'?"
position to absorb some additional Treasury debt over the rest ' •

Corporation

a

of the

But appetites may
become jaded as inventory accu¬
mulation and rising capital outjays absorb more of their retained
year.

.

GaTJflingS.
foreign

Aside

buying,

.

...

from
other

possible

sources

of

Jacob

Schurman III, John Davison and

"

Testj

major

ability
i.

cf

the

supply—testifies to that.

s,.owth ip demand deposits, which
en+Gr
directly
into
the
active
enter
directly
into
the
active

.

U'"*i

half

vauits

in

P.

Schwa¬

Sported 1 The Hrm ln additlon

early 1930s. This despite the.fact
that capital spending is only mod- tors
face no shortage of higherately above its recession lows, yielding investment outlets, and,
and the economy is still operating
unless
there
is
considerably
below capacity.
greater confidence in the stabilHty of the dollar, few investors
'

°old

of

money.

"

ap-

general price level

of

funding ^problem—greatly complieating the task of raising new

experi-

encing a boom of their own,
parently
in anticipation of
•"

form

be interpreted in that'light,

pose,

billion

JLi'

The §20

one

Harold
E.

bacher, Jr., Frank Bowyeiy James
W.

stroncf

n

KT^heav^lS.ce"'"

thinking and
•The

Supply

current international posi
^till

tinn

—-

the

ex-

40th

its

and the improved supply situation
materials-these all
.

of

niversary

enormously
in
recent
;yearsr
The
European
common
market, the heavy rate of invest¬
ment in many foreign countries,

,,.

Calif.—
Mont¬

100

changes, is
c e
lebrating

creased ;

_

Co.,

member

other

from leading

i

:m iiaa-iJOD, at a com-

&

Street,

New York and Pacific Coast Stock
owia

iw,Viq^7
iricreases for our Products, but
vS P°stwai peak in 1957, By because the know-how and pro?L/
ler r?
WaS ductive facilities abroad have in-

,

^
far, the m----Treasury has

Our export industries

'

|)as^ ^a^7c/j(iv»r illg tougher competition
lra
\° JJ\ ° abroad, not only because of

will largely

that

reflect seasonal factors. But, "sea-lsonal factors" provide no magir
magic
passport to willing buyers, par
passport to willing
par^icularly when private investment
,

in

the remhiiuier of

on

True,

fifLl'

mar-

FRANCISCO,

Schwabacher

not all

was

Jhat it should be. In recent weeks,

up

s

Celebrating 40 Years
: SAN

international

our

balance of payments

con-

fo

Schwabacher & Go.

coun-

uinei

year was a sign to all

demands the world that

^^

*

-

unsouna

competitive
that

!«<«««"»

pro-

'
ls a t'ght money market—
and it-may get tighter.

tines have been struggling with
;m?ny S6C" f"r yfarf' fhe $2J bllho1? ?uttHo^
and

mav'fM

bond

°i funds aSa"ist the

Ss?*

:;

SSSv,e^ding ,has ,?i?ked,

re-

Re"

marked
{Jeen dl^.mth>»
been discounting

The

already

.•

—

s"arply. .The net result has been the outilow has resumed.

a

monev

new

ov!er

ouiremenU

-^ terest rates, by their

"-the* violent'

without

even

deficit,
likely to be continuing:
problems in finding a permanent
home for the Treasury securities,

in-

are

-

lions of the country have been

sions

and

•

for• -the

-

.

in running a def--i5erienc'"g near-record
business activity reaches hiortgage money,

'"[ flows of funds
q

trv
'

} months—-deby only l% during all oi

in

B

hardly ignore

can

years, must face up to some of the
inevitable
nenalties
of
unsound

loans held up amazingly well
the feressinn mnnihe
He

hational

our

they

This'SoZ'

is

imnortiint 1nTmernh>n ihit hud

vvPpersist

If

source

fact

weakening

any way
security

>

,

done rtyithout

be

can

system,'it

bankljjg

n'8ve

JJ?

Sit
Moreover

jmPbriani lo rcmemper mat bustness

take t^iiriruy

not

can

we

of

from rising loan de-

a Squeeze

year.'wrates

'

difficulty is

the

,,r

■

it

over,

than

may result in
in fiscal 1-60

necessary

in'aSing thfpoii-

Ihis fnr omnted
and
v* • g
tins- tor granted, ma irtiieh more
much^™oreclm-mg^
can
be done in that area.
More-; iqsu

.

any
other
sector of
the

economy!

budget

Unfortunately,

MMMM

•

•

jy.vanea,
com
plex, and in¬
tangible in¬

spending

a naiancea ouaget in. nscai

-

.

reasonable re-;.tion

recovery,
on

balanced

a

suDjecx

-

.

straints

subiert

-I

i

ifU,t

that

me

are

0f

man<^6d^S?ti^tod^l

are' alert to"the danLrl for nfw tI>e-se Pr.ess"res- But only the dedomestic economy'of any poten- £!?!£!?
tial
increase i in
"inflationary i,onj v;Pid? haL■vlt .J.S

metab inventories. But this would
be; a; most..unusual business ex-

that, with receipts buoyed by the

by

re-

The Federal Reserve leaders have
demonstrated
already
that
thev

yield level is high enough to equal supply of . - Pansion it.banks did not find their
savings is said to depend on events in st^elW:|,
and governmental budget.
'
the increase might fall short of

Perhaps it is only typical of the

bank

on

evenSronger Stat®' bo^owe^of TllTinds"
later in the

that

.

:iO'lXy-y'I

P r o p e 1 ly

"

tighter rein

a

business

and demand for
•

+Yiv?+

-

|gnsloans de- serves With loan, demands rising,v
that
polfcill That
thll
nithough New York
"ew p'eatl tMnkVlikSy f^/reasury is likely to continue

for

mands

that continued

V

V

'.>d.

-

by

we

ficulties.

Refusing to lift the

■JiL:

'■

rising

confident that

am

meet that threat. But it can't be
done without facing up to painful

President, The Chase Manhattan Bank, New York City

n-;

■

connec-

The
has spurted higher

February,

>?" S1-??®

in that

favorable.

so

11

Coffin & Burr
Incorporated

Francis I. duPont & Co.
>

.

W. E. Hutton & Co.

.

Tucker, Anthony & R. L. Day

G. H. Walker & Co.

The Commercial and Financial Chronicle

32

Ou Population

Revolution and
Long-Term Demand for Housing
HAUSER*

By I)R. PHILIP M.

Head, Department of

Sociology, University of Chicago

national population
growth of 231 to 273 million by 1980. A breakdown of this
projection includes an increase in households from 43.6 million
Population expert foresees a resurgent

a

in the size of the consumer mar¬

for

demand

long-term

this

lies

increase

housing continues as in the past,

ket.

greatly affected by popula¬
tion changes. Changes in the size

ahead

and

composi¬

facilities

tion

of

provide goods and services for an

to be

popu¬

mand

w

in

ays.

Indirectly the
demand for

82

to 50%

in¬

resurgent national
growth an important
economic

in

expansion,
indication that
Gross ^National Product, in keepthere h is

affect the levof

1980, 22 years,
increased to

our

factor

ulation factors

.

Thursday, May 28, 1959

.

Prof. P. M. Hauser

ac¬

tivity. Direct¬
ly, the demand for housing will
be affected by our resurgent na¬
tional population growth, by the
.metropolitan area "explosion," by
the decentralization of population
within metropolitan areas, and by
the changing structure of metro¬
politan areas.
Indirect Effects

Demand for

on

1946 and 1956,
impact of demobiliza¬
the war and postwar

every

Gross National Product of .11835

a

billion by

1975 (in constant 1957
dollars) and an increase of about
40%
in
personal income
after
taxes.

the

than

rather

individual

unit; such

consumer

as

a

the home

as

.

fore

Ihe

National

nn

birth

of

rate

primarily

the

the

in

39th

which

lies

decade

ahead.

between

Between

and 1958 to

1930s.

result

It

of

the

was

de¬

Conference

Association

of

Mutual

of

the

Savings

Banks, Atlantic City, N. J., May 18, 1959.

a

level of about 900,000

Projections of the Bu¬
reau of the Census, however,
in¬
dicate
that. it
is
possible that

In

the

1950

and

3950

and

Increase by

1980

Changes
households
more

in

on

the

Housing
number

.

,

of

1965

time is among the
important of the population
over

year.
Reflecting the
impact of the postwar
boom, net household

per

continued

birth

rate

*

formation

will

reach

levels

of

from 1 million to over 1.2 million

between 1970 and 1975;

per year

between 1 million and 1.3 million
This announcement Is neither
solicitation of
-

an

offer to

The offer is made

the

household

buy

an

offer to sell

any

nor

a

of these Shares.

only by the Prospectus.

per

between 1975 and 1980.

year

The
also

Bureau

made

SEABOARD PLYWOOD
AND

LUMBER CORPORATION

$3

per

Share)

of

the

Census

projections4 of

has

house¬

between 1958 and 1965,
of head. This is a signifi¬

The

magnitude and character
population changes in prospect
point to an era of great economic
growth. Both the size of the pop¬
of

remains to be achieved.

Between

increase of from

an

million households may

19

to

be

anticipated,

26

from

38

such

or

increases

It

to

52%.

be

may

tween

an

In

in

the

increase of
the light

of

number

of

expected' that

1950 and

the

of

1980

of

total

is,

persons,

55

may increase from 19
million over the 1958 level
million

households.

That

tively, is of
than

of

from

25

a

different character

households
to

54 years

with

heads

of age. Par¬

8 to 14% during this
households
with
heads
years of age will in¬
by from 36 to 67%. During
25

this

New York, N. Y.

increase

from

crease

Dlgby 9-3430

United

be¬

the popula¬
States
will

two-thirds

population,
may

200 such

of

the

165 million
be resident in over
or

Moreover, within
Metropolitan Areas pop¬
will become increasingly
expected to increase by from 38
to 52%.
decentralized, so that by 1930
suburban populations, with 60%
Changes in the distribution of
of
the
total
metropolitan area
the
population
of
the
United
population, may greatly outnum¬
States, especially in respect to
ber central city populations.
concentration in Standard Metro¬
Our
great
postwaT
economic
politan Areas and decentralization
within them, will also greatly in¬ expansion is in large measure at¬
tributable to the superimposition
fluence the demand for housing.
on a high
levqjl civilian economy
Metropolitan Population Centers of a partially mobilized cold-war
economy, in response to national
As a result of continued tech¬
security needs.
In the decades
nological development, it may be
which
lie
ahead the American
anticipated, that we shall continue
must continue to ex¬
to experience increased concentra¬ economy
tion of population in a relatively pand, both to meet in increased
demand of our rapidly growing
small number of great Standard
population and to assure national
Metropolitan Areas. By 1980, it is
possible that two-thirds or more security. In this expansion it may¬
between

1958

and

1980,

house¬

areas.

Standard

holds in the United States may be

ulation

,

of

the

total

resident

in

population
some

Metropolitan
metropolitan

200

Areas.
areas

will

be

Standard

By
1980,
contain

be

lation in the 30-year period. Most
of the population increase in our

a

promi¬

Harris, Upham Go.
To Admit

Standard

Metropolitan Areas will
place in the suburban rings,
the

activity will have

nent role.

may

165 million persons.
They will,
therefore, almost double in popu¬

in

confidently expected that the
housing and construc¬

demand for

tion

central

cities.

McGreevy

Harris, Upham & Co., 120
Broadway, New York City, mem¬

for
market Suburban rings will increase by bers of the
New York Stock Ex¬
because - the nature of 180%, that is, they will almost change, on June 4th will admit
purchases
of
households
with triple, while central cities increase
heads under 25, and with heads by 30%. Most of the increase in Thomas J. McGreevy to partner¬
ship.
55 years of age and over, respec¬ suburban
rings is likely to go into

by

PETER MORGAN & COMPANY

Some

Areas.

to

26

differentiation

in the United States may

Share




Concluding Observations

purposes,

under

Broadway

in the suburbs.

and

States

rather than

period,

149

the

what

is

now

exurbia

or

inter-

urbia, that is the open country,
unincorporated part of metropoli¬
tan rings.
By 1980, it is likely

By reason of the changing age Areas will be resident in the sub¬
structure, households with heads urbs, only 40% in central cities.
in these varying ages will change
The increased concentration of
at greatly differing rates during population into Standard Metro¬
the 7 years from 1958 to 1965. politan Areas, and the increased
For example,
o f
population
while^all households decentralization

COMMON STOCK

Price

on

ticularly is this true for major
purchases such as that represented that at least 60% of the popula¬
tion
in
Standard
by a residence.
Metropolitan

150,000 Shares

per

market

anticipate then, over this 30-year
period, ah increase of from 58 to

take

cant

$1

distributed throughout metro¬
politan areas—in the inner zones
of the city, throughout the city,

1958 and 1980

by age

(Par Value

case at
present. Good and
neighborhoods are likely to

be

other.

holders,

NEW ISSUE

the

bad

tion

year.

per

million
Direct Effects

by Dr. Hauser be¬

Annual

of

the

the American

-

address

be

households, the McGraw-Hill
hold formation was mainly
the million by 1980. Sectors of the projections of an average of 1.7
result of the changing age struc¬ economy g e a re d
primarily to million housing starts or more in
ture, resulting from the depressed households as consumer units may the 1970s seems well within reach.

further decreases in net household

Mexico.

expansion of from 54% to 80%

*From

they will

and)I(the automotive
Between 1950 and 1980, house¬
industries, and, indeed, all indus¬ holds in the United States may
tries producing consumer durable increase by from 25 to 32 mil¬
goods designed for household use. lions, that is from a level of 43.6
The great decline in net house¬ million in 1950 to from 69 to 76

market, populationBy 1965, it is almost certain that
wise, will increase at the lower net household formation will in¬
limit by a population as large as crease because, by that
date, the
ulation growth. In a little more all of Japan; and, at the upper postwar babies will begin to reach
than one human generation, be¬ limit, by a population as large as marriageable age.
Between 1965
tween 1950 and 1980, the Ameri¬ all of Japan and of the United and 1970, net household formation
can economy must be geared for
Kingdom combined.
may vary from 850,000 to over a
an

is

however, that although the young¬
er
households will increase the
most

will

generation

heterogeneous in re¬
spect to residential land use than

construction

may
drop to about 643,000 per
year for the period 1960 to 1965;
population of the United under assumptions producing high
rapid increase in popula¬
tion has been a major factor in States has increased by a number projections it is, also, possible that
the postwar level of
economic equivalent to that of the entire it may exceed a million per year.
activity. The postwar, cold war population of Turkey, Spain or

.

out,

next

more

with heads under 25 years of age, ulation
and
income per capita,
twice as many as in may increase by from 900,000 to may be expected to increase and
1.6 million, while households with to be reflected by 1980, in a Gross
any other 10-year period in the
history ol the United States. Net heads 55 years of age and over National Product double that of
household formation between 1947 may increase by from 2.5 millions the present.
Households with
Between 1950 and 1980, house¬
and 1950 averaged over 1.5 million to 3.3 million.
heads 25 to 54 years of age, will, holds in the United States may
per year.
Between
1950 and 1955, how¬ during the same 7 year period, increase by from 25 to 32 millions,
to 2.2 that is from a level of 43.6 mil¬
ever, net household formation de¬ increase by from 800,000
The changing age lions in 1950, to from 69 to 76
creased to an average of a little million units.
over
800,000 per year. Such a structures, then will necessitate millions by 1980, All' other things
decrease had, of course, signifi¬ varying types of adjustments by being equal then, the demand for
cant consequences for all sectors business as indicated in the dif¬ housing units may increase by
of the
economy,
and especially ferences in rates of growth, on from 58 to 72% in this 30-year
those dependent on the household the one hand, and the actual size period. Most of this increase still

I960 the

climate has produced a boom in
marriage rates and birth rates so
as to bring
about a great resur¬
gence in the rate of national pop¬

also be pointed

the

States increased by about

The demand for housing will, formation may occur between 1960
then, be dramatically influenced and 1965. Under assumptions pro¬
by the resurgent national popula¬ ducing a low projection, it is pos¬
tion growth and economic expan¬ sible that net household formation

single

The

much

Age Distribution

loca¬

number of persons 72% in their consumer markets.
dug with
long time trends of
productivity and investment, will reaching marriageable age.
Moreover, most of this increase become increasingly concentrated
double over the same period. The
in a relatively small rnumber of
Net
household
formation
in¬ still lies ahead. Between 1958 and
McGraw-Hill projections indicate creased
Metropolitan
somewhat between 1955 1980 households in the United great Standard

sion

Housing

of

groups

It should

desirable

more

tions, will be greatly modified. As
a
result of various forces, it is
likely that the metropolitan area

persons

in
these
various
age
differ in their require¬
ments
for
goods
and services,
varying sectors of the economy
will
obviously be differentially
affected in the coming years.

and

newer

million,

crease

total

economic

period be¬

the

population

influenced

by the extent
to which pop¬

el

the

be

must

in

J: With

housing will
be

and

population of the
United States.
By 1980 the total
population of the United States
will reach a level, at a lower limit
of perhaps 231 million, and at an
upper limit, a total of 273 million.

direct and in¬

direct

In

us.

1958

crease

de¬

both

of

increment of from

affects

lation

housing

of

Most

tween

Between

the

alter

United

11

standard metropolitan areas

The

United

respectively, households with
heads 25 to 54 years of age will
increase by only 3 to 7%. To the
extent that households headed by

rapidly percentage-wise,
constitute a relatively
Be¬
high level economic activity, the small number numerically.
number
of
households
in
the tween 1958 and 1965, households

relatively small number of great
which, in turn, will be decentral¬
ized from central city populations and possess 60% of the
metropolitan population. Further, he stresses the changing age
distribution in the aggregate population.
165 million—will reside in

households

new

the

tion

major factor for expansion of the economy.
that two-thirds of the population—viz.

a

of

net effect

the

States.

adds

writer

some

household formation is, of course,

under

range

and constitute
The

total

million households in the

between 69 and 75 million. The implication
drawn is that it will sharply increase the demand for housing
a

in

is

independent of the rate
population increase. Net

measure

of

formation

formed through marriage
breakup of the "large
family"
system;
and
the
old
household being dissolved through
death, divorce and separation.
In 1.950, there were some 43.6

Chicago, Illinois

in 1950 to

household

ana

and

.

changes directly effecting the de¬
mand
for housing.
The rate of

being

Director, Population Research and Training Center

'

.

(2416)

same

with

heads

interval
55

households

of age and
over, will increase by from 15 to
20%. While these relatively large
increases
with

years

occur

younger

for

and

households

older

heads,

Cbas. Lennihan
With

Wilson,

Johnson & Higgins
("Special to The Financial Chronicle)

Charles J. Lennihan III has be¬
come

associated

Johnson &
ery

St.,

with Wilson,
Higgins, 300 Montgom¬

members

of

the

within them will be accompanied,

Coast

income

tion of Oliver A. Reed. Jr.

Stock

Pacific

Exchange. Mr. Lenundoubtedly, by great structural nihan was formerly Vice Presi¬
changes. In a new cycle of metro¬ dent of Scott, Bancroft & Co.
politan area
development with
which we are
confronted, it is
International Inv. Branch
likely that present and historical
CORAL GABLES, Fla. — Inter¬
patterns of population stratifica¬
tion resulting in the lower income national
Investments
Inc.
has
groups living in inner and older opened
a
branch office at 287
zones
of the city while higher Sevilla Avenue under the direc¬
groups

live

in

outlying

Volume

189

Number 5850

.

,

The Commercial and Financial Chronicle

.

purposes, to
consider
tax exempt bonds.

Municipal Bonds ioi

ownership

of

Which brings up the
subject of
selections.
Municipals are

not

Setting down
of
Not
that

some

them

Dow

-

Jones

believes
Industrial

that,

historically,
whenever

reasoning of this sophisti¬

"a

been

and

became

purchase."

Even

quarter

century;

exempt feature is

mar¬

sale,"

bonds

State you can buy the fault, to apply State aid to which
Power Authority of; the defaulting district is entitled,

the

State

of

New

York

and

ob¬

tain

complete income tax exemp¬
tion. $200 million of these were
offered
nance,

on
April 22, 1959 to fi¬
in part, the hydro-electric

facility

related

rence

Seaway.

bonds

were

to

maturities

the

St.

Law¬

$40 million of the
issued

from.

with

1965

serial

through

market

is

at

of

New

on

York

yield basis.

a

Another variation in municipal
bonds is the extent of tax exemp¬
tion.

When

bond

a

empt

from

Federal

"tax

is

empt" the term usually

bit

a

ex¬

means ex¬

income

tax.

next

4.20%

over

46

annually for the
This is a wonder¬

years.

ful yield now and quite desirable
as

hedge

a

crease

state

in

against

income

possible

taxes

in¬

either

—

Federal—iri coming years.
Moreover, because there are $160
million bonds in this
single ma¬
or

to

the

other

of •'the debt.^ No
explicitly de¬
that, if neces¬
will extend to school
and on the record "no

payment
has

state

so

fined the protection

it.
districts;

sary,

bondholder

lost

ever

through default

on

district."
offered

A

penny

a

any

sued by a New York

is¬

bond

State School

typical

issue

was

Cen¬
(in
Orange County, New York) 3.90%
bonds offered to yield 4% on the
May

21—$2,200,000

District

School

tral

maturities

Moody

1984/88.

from

this

rates

2

No.

issue

"BAA";
and
Poor's, "A." -Oyster
Bay, N. Y. School District bonds,
similarly rated, wefe also recently
offered
to
yield • 4%
in Jong
maturities.
These
new:
school
Standard

&

issues

not

many

states

only of New York, of
come to the market
They are usually quickly
to the well-heeled. For example, a Federal but state taxes as well. turity,
a
much
broader market sold and seldom trade extensively
single person with annual income Only one direct U. S. Government may be expected in this issue than after the original offering and in¬
ranging between $26,000 and $32,- ^obligation enjoys this complete found in most municipal issues vestment placement.
tax exemption, the U. S. Panama with 15
000 is in the 62% bracket; which
or 20 serial maturities.
We wish we had had time to
Canal 3s of 1961.
The
Obligations of
means that a 4% yield on a Fed¬
highest rated municipals cover the municipal list more thor¬
Puerto Rico and territorial
eral
obliga¬ are usually "direct obligations" oughly, including some of the
tax-exempt
municipal
is
a

above 20 times
has

The stock

recom¬

an all-time high; yet gilt munici¬
pals yield their highest returns in

ascended

ket

sophisticated. True,
government
issues,
some

many

tax-exempt income.

mend it.

"a

fuses the less

is done

and

ratio
-

the inves¬
"yield basis"

the

of

1979; and $160 million of bonds
issues, and bearing a 4.20% coupon were is¬
wants to nail down a sizable sec¬ many public
authority and toll sued to mature Jan. 1, 2006. These
road bonds are
tion of his
enhanced capital in
quoted, and traded, longest term bonds may be bought
in dollar
prices but the great vol¬ now at around 99, pinning down a
prime municipals delivering, in
his bracket, a most attractive as¬ ume of municipal bond business completely tax exempt income of
The

Dow
Jones
Industrial list

not

instead

City

the

the

average

the fact that most of

bonds,

are quoted on a

and finally to the point where he

cated investor has much to

the stock

tors)

the

to

of a
price per bond (a
percentage of its par value) con¬

for individual purchase

price/earnings
of

(the

sured

today

Average is headed for 800. Some
seasoned hands in the market re¬
member

reasons

Get Rich Buying Stocks.'

quality municipal bonds, particularly at this time.

everyone

the

of the valid

to

known

investor and

By DR. IRA U. COBLEIGII

Enterprise Economist and Author of "How

well

New York
bonds

bond

Individual Investors

13

(2417)

forget¬

the taxgolden boon

and

a

Many issues are, however, com¬
pletely tax exempt, not only from

often.

tions issued

by the now States of where the full faith and credit of
a 10.53% yield on a tax¬
higher yielding toll road bonds as
Alaska and Hawaii enjoy this to¬ the
city, state or political sub¬ well as the morb traditional mu¬
security (either a stock or
tal exemption. As an
example of division, are pledged to the
folks
bond). If this single person's an¬
today,
pay¬ nicipals.
The points we wanted to
a
popular issue in this category ment of
who having watched their stocks nual income doubles, moving him
principal and interest. stress, however, were the high
consider Puerto Rico Water Re¬ There
are
move
into the S50,000-$60,000 annual in¬
to
unaccustomed
hundreds, however, of yields now available, the useful¬
heights,
sources
Authority Electric Reve¬ special revenue or special purpose ness of these
now
come group, he winds up in a 75%
feel that "cashing in" and
yields as a defense
nue-bonds. Yoir have a broad se¬
tax bracket and must find a yield
bonds, such as school, sewer, park against high-bracket
"salting
away
profits"
is
the
taxation, and
lection of coupon rates and matu¬ and water
course of prudence.
obligations bonds. This the general high quality of munic¬
Take the case of at least 16% on a taxable secu¬
rities here.
Maturities run from is all very well so
of one seven figure habitue of the
long as the peo¬ ipal
Most of the larger
rity to equal a 4%' yield'dn-aJax Jam 1, 1961 to Jan. 1, 1996. Cou¬ ple pay the tax. In a dire
market. Eighteen months he asked
depres¬ inveslment^and
brokerage houses
pon
rates range from 2% %
to sion, however, they might not be
his
broker to
submit
a
list of exempt bond. The brackets are
4.60%.
The
shortest
and many commercial banks and
maturity, able to do so.
of course less onerous for married
"growth" stocks; six months ago
1961, is priced to yield
New York
about
he requested a list of "convert¬
State, incidentally, trust companies have municipal
couples making a joint return, 3.25% while
the bonds from 1968
does not leave a school district in departments supplying regular of¬
ibles"; and on May 15 requested
but, in general, almost any one on, yield variously from 4% to
a
list of tax-exempt municipals.
the lurch if it gets into a financial
fering lists, and there are a num¬
4.40%, fully tax exempt.
He's run the gamut from specula¬ today making above $20,000 a year
Chapter 716 of the ber of renowned firms in many
Experienced municipal bond difficulty.
tion for the rise, to a straddle or is in an area where he may find
buyers set great store on ratings. Laws of 1959 authorizes the State cities that
specialize, some of them
hedged
position
in
"converts"; it advantageous, for net income The two
rating services used are
Comptroller, in the case of a de¬ exclusively, in municipals.
Moody's and Standard & Poor's

ting

equal to

history,

there

are

Ira

U.

Cobleigh

many

able

with

I his advertisement is not

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

an

The

perhaps more frequent con¬
sideration given to Moody's pos¬
sibly because it's been issuing its
ratings longer. The highest rating
is

AAA

and

issues

government

NEW ISSUE

Moody gives this to
and

to

This advertisement is neither

offer to sell nor a solicitation of offers to buy
offering is made onty by the Prospectus.

any

of these securities.

NEW ISSUE

May 27, 1,959

certain

selected states.

The direct obliga¬
tions of New York City, Philadel¬

.?

phia

and Chicago are accorded a
single "A" rating.
This rating Ls
quite
sophisticated
business,
cataloging each issue in accord¬

y

99,885 Shares

a

$80,000,000

with

ance

National Steel Corporation

certain

Crucible Steel

traditional

standards of quality based on ex¬
tent of debt, taxing
power, etc.
A

type of

Federal

tax

Mortgage Bonds, 4%% Series Due 1989

Dated June 1, 1959

of America

bond that has become very
popu¬
is the one crcated to finance

5H% Cumulative Convertible Preferred Stock
($100 Par Value)

'•>•;'

Federal housing projects. The is¬
sues are called New
Housing Au¬

Due June 1, 1989

thority Bonds.
They are choice
bearing a triple A rat¬
ing
which
derives
from
their
indirect

as

the

United

The

bonds

of
Government.

each

issue

are

se¬

cured

by a first pledge of annual
contribution, unconditionally pay¬
able, pursuant to an annual con¬

Price 99% and accrued interest

tribution

Public,

.

contract

Housing

$29 per

at

•

share, subject to adjustment in certain events.

obligations

States
of

■.'.'/'■■■

,

Convertible, at any time prior to redemption, into Common Stock

securities
status

Company

exempt

lar

First

an

The

between

the

Holders of the

.

Company's outstanding Common Stock

right to subscribe at $100

per

Convertible Preferred Stock

at

the

rate

Administration

on

May 26,1959. Subscription

expire at 3:30 P.M., Eastern Daylight Time,

The several Underwriters have

and

being offered the

of one share of Convertible Preferred Stock

for each 38 shares of Common Stock held of record
Warrants will

are

share for the above shares of SlA% Cumulative

on

June 9, 1959.,

agreed, subject to certain conditions, to pur-j

the Local Public Agency is¬
suing said Bonds. The said annual

chase any

contributions

period, may offer sharesof Convertible Preferred Stock as set forth in the Prospectus.^

Public

other

paid

Authority
funds

of

will

and others

Bonds when due.

Local

United

unsubscribed shares and, both during and following the subscription

with
Public-

principal of, and interest

lawfully offer these securities in such Slate.

Local

together

the

agency,

as may

the

be sufficient to pay

Copies of the Prospectus

may be obtained in any Stale only
from such of the several underwriters named in the Prospectus

to

States

is

on,

the

Copies of the Prospectus may be obtained from any of the several underonly "hi States in which such underwriters are qualified to act as

writers

The faith of the

pledged

to

dealers in securities and in which the

the

Prospectus

may

legally be distributed.

payment of these specified annual
contributions by the Public Hous¬

ing Administration.
legal jargon to say
Sam

Kuhn, Loeb & Co.

Harriman Ripley & Co.
Incorporated

Blyth & Co., Inc.

Goldman,' Sachs & Co.

Eastman Dillon, Union Securities & Co.

The First Boston Corporation

Smith, Barney & Co.
Glore, Forgan & Co.

White, Weld & Co.
Kidder, Peabody & Co.

which

Merrill

Lynch, Pierce, Fenner & Smith
Incorporated

Stone & Webster Securities Corporation
•

»•

-

>

Drexel & Co.

f

'

Hemphill, Noyes & Co.

Carl M, Loeb, Rhoades & Co.

Dean Witter & Co.
'

Hornblower & Weeks

A. G. Becker & Co.
Incorporated

Lee Higginson

.

Corporation

Paine, Webber, Jackson & Curtis

co-maker




Uncle

the

Bonds

on

all

with

The First Boston

Corporation

are

Federal

tax

exempt

yields

of as high as 3.90%, are available
in the later maturities. There was
new

issue

these

of

Housing

Smith, Barney & Co.

Kuhn, Loeb & Co.

The high rating and the high yield
make them most attractive, if your
bracket can use them.

Another way of
tax exemption in
vestments is

division,

Goldman, Sachs & Co.,

*

Lehman Brothers

Merrill Lynch, Pierce, Fenner &
Incorporated

Drexel & Co.

Hemphill, Noyes & Co.

bonds brought out just this week.

of the State
May 27, 1959.

is

that

financing a whole batch
of individual housing projects in
many
states.
'Long-term bonds,

a

hazard Freres & Co.

is

This

•

White,Weld&Co.)

Smith
x

Paine, Webber, Jackson & Curtis f

'
.

Dean Witter & Co.

Bacon, Whipple & Co.

Singer, Dcane & Scribner
*

Walston & Co., Inc.

>

Moore, Leonard & Lynch >

Arthurs, Lestrange & Co.)

•

achieving total

your bond in¬
by buying the bonds
(or of a political sub¬

agency

or

authority

therein), in which you live.
For
instance, if you are a resident of

J. A.

Hogle & Co,

A. E. Masten & Company

Watling, Lerchen & Co.

Newhard, Cook & Co.;
\

14

The Commercial and Financial Chronicle

(2418)

1

as

A Critical

Appraisal
Of Mortgage Banking

know

to

caught
of

with

up

us more

realize. No industry has ever

us

developed

such

fast in

so

short

a

period of time
has

as

our
mm

during
the past quar¬
ter
century.
other

•

It

have

a

found

change
iri concept and

it

as

of

of

No

ourselves

stock-taking,

an

American

and

let's

gest, has been

imagine we're using
pandable telescope, first

able

a

offer

much

so

to

those

Some
fctave

it
we

this

in

past

of

century.

from

own

the

and
of

Have

lived;

the times

but

benefits

our

have

some

result

reason,

have been able to

quarter
increased

resulted

forts

ef¬

been

in

the

which

we

whatever

the

the

availability of mort¬
gage
financing
has
increased
enormously and home ownership

3has been
our

the

outstanding fact in

prosperity.

Mortgage finance today is the
largest user of new capital in the
country—and in that statement is
almost

an

nomic fact

over-powering
eco¬
reflecting the greatest

significance for a healthy econ¬
omy, high employment and wide¬
spread
savings and investment.
The economic
work is
.

look at the Near Term

area

certainly

in

which

one

we

with

the

our

Long Term

of

then

home
are

a

Primarily
to

ef¬

our

pivotal instrument

in

months

1959.

During

have

I

and down and
in

a

and

see

in

the

been

traveling

up

extensive.

as

can

I have had

to

a

see,
take

gage field
seen

ing

an

close look

fixed

the

come

away

pressions. My
old

own

are

a

definitely

and

formed.

The Near Term

First,

our

favorable.
there

ally I

to the Near Term out¬

as

look for

have

reservations,
exceptions—but gener¬

are

am

industry, I think it is

I

heartened by the outlook

we

Housing

in

not

national

•

balanced
me

Federal

the goal of a

budget ..and

to

this has been paramount.. The

President

was

afford

cannot

to

do

made to balance the

appears as a matter

budget, come
Things being what they
are, there can be no quarrel with
most
of
the
objectives in this
housing legislation — what was

of record only.

NEW ISSUE

May 28, 1959

needed

was

programs

a

cutback

on

all these

in line with what

more

Specifically, the prospective in¬
crease

the VA rate will

in

wonders
gram

—

but

a

work

reviving the GI
market

par

business

is

will

pro¬

not

be

in

done

and, most important, the veterans
will be served.

Common Stock

Not

(Par Value 10c

in

sight

GLIDE CONTROL CORP.

Share)

#

past year and
-

remarks

$1

Per

Share

•

r

.

\

■

Underwriter

as

they

me

Broadway




BE 3-3030

New York 6. N. Y.

have

I

mv

interpreted

set

no one

myself up

constructive

seem

To
and

hope, worthy of,.your attention
and consideration.

a

nickel

should have

been

too

that

mortgage

many

to

bankers

appreciation of the

try is, and have failed to evaluate
the

responsibilities it

short,

too

framework
been
a

of

—

than

the

sufficient

So

program.

much

to

for

pattern has been set

there is nothing anyone can
do about it. But regardless of my

thoughts, the effects of the new
bill will,
admittedly, be stimu¬
lating to our field.
,

Fourth,
made

Home

in

I

bespeak

behalf of

Mortgage

best

the

Credit

industry'

our

has

largely created in less than

efforts

has

some

Yet

turning

aspect

spected

excel¬

I said,

as

eye

-

this

on

of our business. One re¬
authority remarked that

is

much

been

people,

critical

a

credit

our

area

done

where

one

was

comparatively

on

little capital and of course that is

true

understandable—and

and

I

ciples upon which
rest

are

number

indeed.

The

originating companies

mushroomed

has

endeavors

our

old

very

of

in

the

past

15

— and
I am happy to say,
close and careful observa¬

years

industry has attracted
of
the
very
highest.

been

Notable

the

is

great

number

of

young people entering it, a pleas¬

fact

ing

bchool

indeed

in

throughout

and

small

no

the

due

to

our

Yet

measure

f

industry

evidence

sufficient

of

see

this

lack

of

recognition of

Pe/™anent> .stable continuing

effort.

matter

of

field

degree

here

degrees
comes

there
in

Some

naturally,

to

as

is

suppose

and

too.

content

seem

industry

our

Everything, I

looking

are

a

are
our

what

do

directing

their

efforts

other.

at

*

\

such
as
the
financial.>•<
strength of those who serve them.
aspects
So

I

build

say,

the

for

future,

,

build your house, and keep build¬

by year so that you
examination during the
exacting
days
which
lie

ing

it

can

pass

more

year

-

ahead. And do it
for

based

as

insurance

operation

economics

sound

on

now

Our

tomorrow.

is

and

-

j

a

proved record of satisfactory performance

where

but

—

we

can

.

strengthen, let's not overlook the

opportunity.
Third,

Mortgage

got to wake
life

been

in

seemingly, they

ignoring

the

lished

they

will

•

aside

(

dis-

h

I'm referring to a pattern r,;
which

life

,

have

brushing

or

that

hope

appear.

of

liave

bankers

to certain facts of

up

which,

is

estab-re¬
certainly will]

which

and

well

now

disappear—I mean specifically
the gathering forces for the all-^ty
out attack on ever-growing slum ;1.

riot

the fight against blighted v
neighborhoods, indeed the whole?,
vast field of urban renewal. ,Ift:
areas,

will

serve

useful purpose now

no

the

of

wave

be

the

is

definite./,
mustj.y.
conform^,
ourselves, our acf
and

future

we

part of it. We must

a

must adapt

we

f.

this is creeping,

socialization—this

tivities

and

personnel

our

to

ai;

this pattern. Too many ,,
mortgage
bankers
are
utterly;
ignoring the very existence otk ,
this whole urban
renewal qe-^
in

place

velopment
although,
in
sharp,
contrast, I hasten to add that some

have

bankers

mortgage

been

leaders in this respect.

able. There is a
221

;

tv

profitr nv
profit in 220 and :Vt

these efforts can be

And

have

some

as

conclusively^.,

proved.
Fourth, mortgage bankers
make

to

a

cardinal
the

business

their

tion, that the type of individual
which our
has

on product
volume for many years;,,,-,

they

now

generation; yet the basic prin¬

ought

principle of
possibilityoia

better and better job for
investors they serve. Now I

doing
the

v

a

happen to be one who believes that;uv
investor-correspondent system ,•.»«
rested
on
better ground

the

never

it does at this

than

moment. For;

industry has done

thing our

one

.j,

extraordinary job in tne o.
excellent servicing machinerywe,
have created and it will get better l »
because this is an area where new > ••
a

truly

ways

and

new

ideas will always
The conception

be coming along.
an

u

correspondent does torinvestor has expanded greatly l.

of what

until

a

now—and this is a

particu-^j

solely to the most profit¬
able part of the business. But my

larly telling fact with me

most

correspondent

telling—and alarming—point

this:

too

a

far

many,

do

men

themselves

that goes

more

not

do

us

stability which, to me. are so
clearly evident. We're young the

as

the

entails—in

of

many

a,cc,°;d.the permanence and the

110,000 units are now in effect
and 475,000 units probably-will be
completed by the middle of 1960.
is

fail

recognize how vital our indus¬

mortgage

for public housing at
juncture—authorizations for

lent.

to demur and say

.

1 bave the definite feeling

as

a

member of

whom

Second,
of

will

of

part of the whole
a

broad and

very

industry. And

see

at

regularly.

failed

mortgage
,

considerable

a

mortgage

have

many

think

for many, many people

you

meetings

too

not

vital and necessary

and

141

be

not

hope

arbiter for the industry

an

is

that

Keilly, Moffman £ <£o., he.

talking

half. I

a

will

think

will

authorized

carry
A

most of

carping criticism or that

as

This

PRICE

but
from

years;

gained

were

to mortgage people the length and
bieadth of the land during the

this

per

and
the

a

the President has oroposed.

300,000 Shares

work
set

the

all

what may.

announcement

them

absolutely right— from

things being proposed right now.
The decision ought to have been

having been sold, this

well

Minneapolis during

two

past

have too little

Bill

the

have abandoned

we

All these shares

not left

had

the

will
substantial indeed.-

interest. This housing bill, in my
opinion, is inflationary—and in¬
flation, as I have vigorously em¬
phasized in many places and on
many
occasions, is the greatest
danger this nation faces. It's an
extravagant venture with heavy
political over-tones too ; evident
for anyone to miss. It means that

mixture

confirmed

paper

may

importance of their position,

with fixed im¬

convictions

ones

1

housing

Third, I think this year's hous¬
ing legislation is not good and is

mort¬

and, in brief, have
at first hand mortgage bank¬
as
a
whole. Anyone would

have

for

very

Opposes

.

.

.

demand

continue

So, as you
opportunity

at

on

the

bankers I probably would hold if

carefully considered, housing is
a good
buy, no one need hesitate
to buy. It seems to me that the

my

almost

lor

moment, with every single factor

this country

across

for

pace

confounds, insured

six

past

position as President of
Mortgage Bankers Association of
America.
During
my
term
as
Vice-President, the schedule was

one

Eastern Mortgage
Conference, sponsored
by M. B. A., New York
City, May 14,

be able to

may

events.

and

means we

♦An address by Mr.
Nelson before the

.

to

so

housing, .for • most
construction, the prospects" are
indeed favorable. High prices are
a
threat, of course, as they are
in every area of American life.
The
wage-price
squeeze
is
a
dilemma and a danger, one of the
most challenging facts confronting
the nation. But everything con¬
sidered, I'm convinced that at this

View.

providing

ownership, which

.

.

building,

favorable position than most
because of special circumstances

new

directed

then

.

more

of

are

we

Far

deepest meaning for the welfare
forts

ex¬

As for the Near Term, it might
well be that I am in a somewhat

of this

nation.

.

for ; the insured loan to
competitive loan, and

CAP

it

we

tion and

a

busy Sixties we have been some observations about the Long
anticipating and it certainly looks leim lactors in our area of credit
as
though the performance will, home are impressions about mort¬
live
up
to the billing.So, for gage • banking
and
mortgage

lengthening it still more for

what
the

the

.

think

I

that

financial troubles
all know, our

no

record

largely concentrating

is

more

a

down

way,

plagued with
in
fact, as

it

us

of the

taking

sights to take

lengthening
view

Walter C. Nelson

than

serves

do

more

For

an

be

cut

extraordinary

an

everything has worked
industry
has
been

financial

are

into

The

remote

and

for

long term trend in
lending. It deserves our
times. best efforts.
This
year
we" will
certainly
The Long Term
record
1,300,000 new starts and.
possibly more. We are on the eve
Now I would like to project

a

business.

possible

shelter holds, delay.

new

But

great deal more. In areas where it
operates — and soon it will be
nationwide — FHA has made it

in

saw

far

So

fine.

have

us

enough

might add. sound. Other changes
are
occurring. Some of our in¬
by which vestors — I'm thinking of one
be made group particularly — have been

of us, as it docs me at

some

time
inventory of

an

our

we

small

in

communities.

from good to excellent.

range

in

up

and orderly appreciation,

easy

over-

development

the ways and means
mortgage financing may

available

•

The market for

Scene

to me. It is

appears

operation.

other,
I
modestly sug¬

the

of

area

our

method

to

ing

briefly review

to

success

minute

- Una

return

ever

as

1955.

or

well

like

will

we

our

of

many

^MCP, it too seeks to

Second, the prospects for build¬

opportunity ahead, no
challenges—and no end of

would

I

small

no

for this
a

con¬

too

ploughed back
operation.

full cooperation.

characterized

not

conditions such

1950

responsibility.

pro¬

think

don't
to

means

end of

has

this

narrow

^i?*rr\y merits our
*s ' ahother
which

periods of the recent past.
If I'm right, then the fact is worth
noting and considering because I

things.

of

scheme

our

to hold

is

should not for

we

many

home.

in

there

million

$350

ing

not

artificially

—

more

worthy effort within

anything else—that
there is a certain stability and a
certain normalcy at this moment

of

a

has done

aJone

reminder than

practically everyone to
So, what we have
been
doing, and what we will
continue
to
do, is firmly / em¬

desire

programs

fixed interest rates. That and that

formity. I cite this fact more as a

link in satisfying the age-old

sary

bedded

experienced
such

economy

own

own

No

the

sponsored

that terms, rates
T^on, foresight and
which
the
(with some impor¬ effort
government
tant reservations) are in line ami- agencies have contributed.
have
a
certain
economic ■ con¬
FHA s yCertified Agency Pro-

important parts of
as well as a neces¬

most

the

government-

indications

which
of

that

has

than

and conditions

offers introspective concern as
and provides numerous
suggestions so that the industry can continue its good work
now that it is
no longer a child.
past have
than some

to have taken hold here and

there

itself.

aching plagued the some thing
else is the
that has

wildly

demands,

those

re¬

seems

What

VHMCP more

achievement and

satisfy

heavy capital

of

demand for funds and the money

are

the

the

fines. As it is, a volume approach¬

to

considerations;

recent

the

of

some

v/ith

faced

quirements of other lending fields
such as, for example, the invest¬
ment bankers. Still the impression

more

fluctuating periods of recent years,
there is a stability in the business,
there is a certain balance between

of capital to mortgage credit;

the

I

time.

some

answer

account

very

trasted

Mortgage banking spokesman's criticism and praise of the
optimistic forecast of
1,300,000 housing starts this year and by a satisfactory
opinion regarding the long-term outlook. Mr. Nelson cautions
the industry that the favorable abnormal forces may not
always exist; disapproves of housing and other legislation that
sacrifices the national objective in the fight against inflation

of

for

soundly-

a

was an

hindered

well the acute com¬
petition and the other problems
we all face every day. But, con¬

mortgage industry is accompanied by an

Events

had

have

was

Thursday, May 28, 1959

.

direct lending in the VA
lield and it has given an excellent
to

a

we

program

conceived effort. It

amount—today if you will
considerably more normal
period in our field of credit than

—is

America
^President, Eberhardt Company, Minneapolis, Minn.

to ratio

This

a

at this

President, Mortgage Bankers Association of

narrower

Many—undoubtedly

to my impression that right

me as

By WALTER C. NELSON*

for

it.

see

good majority—may quarrel with

.

.

bankers

to

see

the

-

*

number

apparently
wisdom

of

having a stronger financial struc¬
ture

in

relation to

business they

the

volume

of

do. This implies no

many

— the
is performing so;
services for the mortgage,,;,

investor

that

he

has

become,

in

.T

respects, an arm of the in-v
He has reached this P°si-:r
tion—and we can take pride ^nav,. ■
he has
in a relatively shorts-

many

vestor.

—

The end usually
the means and for the
correspondent-investor
r
*'
ship the end result.is good. Ihe r;outstanding fact is in the fina
figure—I mean the vital and nec¬
essary contribution which moitgages
have
made
to
the
net
investment yield for the investors
period

of time.

justifies

.

Voluntary
Program.

weakness—the very nature of our
operation is such that we are not

Continued

on

page

36

Volume

189

Number

5850

«

.

The Commercial and Financial Chronicle

.

(2419)

Security

By WALTER HARNISCIIFEGER*
Chairman

the

of

V

,>v-

Board,

Harnnchfegcr

Citizens Foreign

Prominent industrialist, charging

,

we

Aid

billion

our

period of three

.

reliance

this

year's appropriation and
terminate

to

years

the

as-*

own

v

surplus

more

foreign market and inducement
H

Foreign
principal

commodities

example.

the

of

many

there

in

the tremendous re¬
German people themmade.
After we changed

selves
>

of

some

atrocious

our

most

superhuman.
from

came

:

into

and

Their

drastic

hours

of

both

the

gravely concerned with

situation-

prevailing

in

this

country. The United States is
frohted
its

with

con-

inflation, violent in

impact. If it

is not
it

stopped

sonal income tax collections. The
people are continuing
| this heavy burden at a time when
I various of our Western European
| allies are enjoying prosperity, and
American

emascu¬

late

our

eco¬

nomic strength
and destroy!
It

| when certain of their industries
| are booming.
One of our Allies
| has just ordered its sixth tax re¬

freedom.

our

will

eign Aid programs are consuming
the equivalent of 20% of our per¬

il

inevitably

will

budget deficits caused by
this Foreign Aid program. It also
that past and present For-

means

wipe

out the future

duction

earnings and
savings possi¬

War

bilities
b

i

u s

and

nesse^s,
in¬

W.

stitutions sup¬

Harnischfeger

ported by trust
and

The

result

out war. * :

would

be

by

stands

at

of '-this

Commies,

$2.2

for

exre-

billion.
$20

around

It

now

stantially

reduced,

face

we

cur-

devaluation with dire* consequences for us and the
entire
rency

free world.
and

Our total

private—and

debt—public
various Fed-

our

eral " commitments
the' fantastic

total

reached

have

of

certain of

they

-—

erecting
With

we

avoided

inflation.

and

made

several

emphasize

some

of

our

pear

spending

tax

this

Ger¬

out

reductions.

seem

history.
to

We

giveaway
,1 can

spent.

citizens

about

is

money
assure

more

how

being
is

it

you

a

monumental task for private citi-

to obtain the facts. Actually, various members of the House Foreign' Affairs Cohimittee stressed
this same fact publicly at the
recent hearing "where I testified,

ity^ higher > taxes,

to
our

a

disastrous
economy

a

qualified

com-

to-

insolvency

of

military

men;
four of
graduates of West Point

are

with outstanding war records. I
present their views because of the

tremendous
their

involved.

sums

considered

should

a

upon us,

est

appraisal.

But

Foreign Aid Spending

Many
them

are

the

related

are

ap¬

the

of

state

slavery

What could

major war be
it is a strong probability

that most of
—will seek

Allies—to survive

our

neutrality.

This prob¬
we must,
costs, be adequately pre¬
pared to defend ourselves.
They
ability
at

is

so

great that

all

in

other

are

areas

of

consuming

or

If

initial

aid

will

indus¬
in¬

not

starts.

war

win

all-out
war,
the
United States must have sufficient
an

survive

to

power

destroy the enemy's
ability to wage war.
This strik¬
ing power should consist princi¬
pally of fighters, missiles, bomb¬
ers and space weapons in being,
not

on

boards.
and

not

possesses

order
or
on
drawing
Only the United States,
one
of pur Allies today,

such

a

striking

products?

can

Sooner

market for its

a

/

later any foreign aid
program which cannot feed upon

uncontrolled

or

itself without further aid from
have

to

be

abandoned.

Free
and
Red

World.

If

we

provide

ascendancy
Forces, certainly

space

fiscal

sheer

and

of

pres-

as

provide the surface forces deemed
necessary.

.

us

The

How

Committee

feels

advertisement

is

long shall

not

is

and

ho

under

of any of these securities for sale
of such securities. The

or

circumstances
as

a

to

solicitation of

be

construed

as

an

offering

offer to buy any

an

offering is made only by the Prospectus.

NEW ISSUES

May 28,

1959

illups Western Petroleum Company

a

that

docu-

ment which would have the ghost
of

a

bility.

$5,000,000

chance of receiving favorable

action from hard-headed, realistic
irresponsi- businessmen like the Board of Directors of your own corporations.

major^rea'of'govOT^ment *spendt

6% Participating Debentures, due May 1, 1984
(The Debentures

For background material, where

known

extent

your

own

are

funeral

with

The

(1)

During the last 10 years Foreign
Aid has totaled more than $70 bil-

"Citizens

lems.

this, the President's Committee on
Foreign Aid is urging an addition-

entitled

It is obvious that

$400 million.

government intends that Foreign Aid shall be permanent and
global.
our

end

the

of

that

same

Foreign Aid

we were

War

World

II

told at the
would

be

(2) The

men

new

Also

principal

1,

Fellers'

(Par Value $1 per

Offered in Units

Stock .which

book

consisting of

will not

members of the

$3,500,000,

including

and

May

maturing
1,

1969.)

be

one

Share)

$10 Debenture and two shares of Common

separately

transferable until after July 31, 1959.

Citizens

Price $22.20 per

Foreign Aid Committee,
The publication "Report on

Overseas
made

of

amount

to

"Wings ;for Peace." Both

are

(3)

1962

Common Stock

book entitled "We-

General

unsecured bank loan of the Com¬

1,000,000 Shares

tee."

requesting $3.9 billion. On top of

program

the

November

of the
Commit-

Aid

an

and

demeyer Report," a professional
appraisal of global military prob-

is

Bonds in

from

First :.. Report

Foreign

plus private gifts and aid
amounting to additional billions,
The Administration
this year is

lion,

This

Trust

semi-annually

not theories, of this aid problem,
I, particularly recommend three
Foreign publications.

Aid?'b

al

subordinated to

Specifically: "To
you
paying for

Aid.

Foreign
what

Collateral

people— you can get the piactical aspects,

American

the

to

are

in the principal amount of $1,500,000, payable in installments to and
including May 1, 1962, and to the Company's 57/&% First Mortgage and

pany

Recommends Publications to Read

least

administration

ing*->and

,

Economic

by

the

Operation"

Foreign

Aid

'

Unit

[plus accrued interest from May 1, 1959)

Task

Force of the Second Hoover Corn-

mission,
Henning

which was headed by
Prentis, also a member

temporary and solely to help'war-

Copies of the Prospectus
the several underwriters

may

as

are

be obtained in

any

State only from such of

registered dealers in securities in such State.

of the Citizens Foreign Aid Com-

stricken nations get back on their

mittee. One of its major implications is that only Free Enterprise,

feet.

Most

people have forgotten
that we even offered Foreign Aid
after World War II fo the Soviet
Union—at
owed

precisely the time they
still

and

owe

us

some

$12

not

government

furnish

can

the

The Johnson, Lane,

multitude of experts with proven

experience to administer our
plex Foreign Aid program."

for

I say

so-called

Lend

Lease.

to you that more than one-

fourth of

our

Federal debt results
_

i

,'An

before

the

Chamber

47th

of

Ay

Mr- Mee.».«*
Harnischfeser

Annual

Commerce

»-»

of

the

United

States, Washington, d. c.




Due

W. E. Hutton & Co.

to the limited space of this

paper, it is
to evaluate

not

possible

what

for !me

has

transpired
in the fantastic foreign aid spending program throughout the
tT

WOrld.
bring

t

However,

I

out

a

phase

j

do
of

j.

Want
our

Space Corporation

corn-

The

*

billion

the

±

to

relief

air

the
Free

World countries should be able to

strong

read

Report and evaluate it

over

it

is

un¬

necessary for us to garrison five
we continue a policy of
divisions
in
Europe
when
the
subsidizing these economies with¬
population of our European Allies
out realizing that
doing so can
is
50%
greater than
ours
and
dom of forever being obligated to lead
only to international bank¬
sustain any
nation at a higher ruptcy?'
Continued on page 28

challenge

I
to

.

power.

a

industry without

In connection with our funda¬
mental foreign aid philosophy we
cannot avoid questioning the wis¬

This

Robinson-Humphrey Company, Inc.

'

1

M. A. Saunders &

Company, Inc.

Francis I. duPont & Co.

-

enemy

attack and to

the

have

we

To

striking

supplying millions of1 additional
dollars in order to sustain a basic

govern¬

will

government spend-

sure, enormous

ing,

labor

to

4

Most

causes.

businessmen

ia

that
forced

.

inflation.

preliminary conclusions. Undoubtedly it is a sincere and honsound

v.\/

It

opinion

'

h

am

the

on

several

are

self-generating and natu¬
Air and space
ascendancy over
rally increasing economy which the
Red Forces does more than
will feed upon itself, how can we
merely defend us. It extends in¬
afford to
continue
a
policy of cidental protection to the entire

lead only
deterioration of

and

survival. I

Committee

when the

regard to the development of

clude

spending and generous give¬

aways—all of which

They said also it was refreshing
that at least one organization has
stepped forth to present

more

establish

where

tries.

oblivous

reverse

compete

to

secondary

point because

people

impotent

the

cut

to

and

brought
about
severe
inflationary pres¬
sures.
We have developed and
expanded basic industries with¬

and

And

Government

man

I

increases

wage

Citizens

armed

justification for all this?

world

belt-tightening and utmost
they
prevented
sky¬

own

military expert but

a

rest

foreign aid

our

system

very

There

restraint

rocketing

cases,

set out to combat.

be the

were
dedicated to
capitalistic
society.

our

us

hold that the next
war, if it comes
will be decided in the
sky, that
the fate of the Free World will

industries

our

-

a

re¬

own,

up

with
the

hatred of Commun¬

a

to

our

that con¬
assistance is es¬

military

sential for

Aid

Foreign

The President's. Committee has
recently issued a
report of its

states and cities.

our

own

far

opposition case to foreign aid.

all

also witnessing

financial

the

day

our

our

know

sources,

$1,350

that

other countries in the world
are

inception, and unUndoubtedly
the
through their intelli-

of

some

than

billion—greater
bined. We

its

billion, and zens and private groups like our
70% is Citizens Foreign Aid Committee

to foreign demand,
flight of gold is sub-

this

ism

with

to the lessons of

no

total

subject

now

Unless

camps

many

build

from

ment

from

gence

was

is

educated,
people,

returned

Cow"

than

remaining

-

of the

disciplined

whom

used

our

Military

the hands of professional
forces—mostly Americans
helping to socialize industry, to —manning the weapons on hand

In

Russian prisons and concentration

World

expense

and

of

many

of

Allies, while
indulge in deficit financing.
We have furnished over
$2 bil¬
lion to Communist countries.

trend toward rapid wage increases
without any relation to productiv¬

chaos

v

trained

An

been

duce the debts of

per¬

issue facing ."the
American people today is more
heavily veiled ;,in
secrecy
than
Foreign Aid. It has been a "Sacred

with-

victory

During the year 1958,
ample, our gold reserve
duced

of

touchable.

Communist

a

end

II, all at the

Probably

and

many

funds.

the

American taxpayer.

in¬

of

dividuals

since

sacrifices.

dollars

we

labor, their own restora¬
tion oi confidence in their mone¬
sonal

billion

foreign aid has

manage¬

tinued

not

of

Personnel

at

leaders yvarn

whom
of

success

ment and

from

expenditure

for
administering these
huge foreign aid funds has grown
from
450
in
1948
to
a
present
strength of some 12,000 people
administering 2,000 projects on a
global basis; plus 9,000 adminis¬
tering the military assistance pro¬
gram.
,
Y';0 ; :

Three

economic

tary system, and their great
are

al¬

was

political reforms, the endless

working

of private funds to supplant

the

■

policies

there, the German effort

huge

our

The staff

spent
1940s saw,

late

Our

recent

many

Growth

Plan

the

covery

Point IV aid.
We

justify

who

us

the

are

Scoffs

possible.

funds.

While

Marshall

living than her basic

reports
in the press concerning these fal¬
lacious policies of many of our
foreign aid programs which fail to

on-the-spot,

^

on

loans, movement of

money

II

the

was

shining

helped,

Preferring;

program.

.course

time

c

liquidating

a

the

•

.

private capital, the industrialist suggests such considerations as: adoption of Bogg's Bill, Ex-Im-Bank re-insurance of
private bank credit—which could make use of soft

*

programs,

War

of

resources make

There

people erroneously be¬
Marshall Plan, first of

of

our

at claim that military aid is
Mr. Harnischfeger proposes a

survival.

own

in

cut

natural

for Europe's
recovery and
they especially point to Germany

against public

case

standard

do

global basis.

a

reason

^foreign economic aid and scoffs
essential to

the

conditions

same

on

post-World

:

"paying for

funeral with Foreign Aid," presents the

;

the

Many
lieve
our

Aid Committee

are

that

not prevail

V"

and

„.

size

Corporation

Milwaukee, Wisconsin

Chairman of llie

in Europe and te empha¬

program

The Case Against Mutual

15

Alex. Brown & Sons

Hayden, Stone & Co.

_

Courts & Co.

Johnston, Lemon & Co.

«.

The Commercial and Financial Chronicle

.

Thursday, May 28, 1959

.

percentage of home building, of
industrial and commercial growth

Taxation and Thrift
(D., N. Y.)

After perusing past and
present suggestions, and advising commercial hanks to decide
whether they want to be commercial or savings banks, the
Congressman hopes a common ground can be reached which,
justify their present tax treatment.

will, in my opinion, lead
conclusion that growth will
be stultified all along the line. In¬
creased taxes on the thrift indus¬

time, thwarts inflation and aids economic growth.
a fine compliment from the Rep¬
mutuals

are

try will make it

praised for working with them.

government
loanable

to

difficult for the
finance its debt

banks will be
smaller share of
I viewed the Curtis-Harrison bills petitive disadvantage by reason of federal bond offerings. Further,
as
unique in that they sought a the specialized nature of thrift in¬ such a tax increase would reduce
stitutions and by reason of their the amount of money stemming
competitive
As

student of

a

tax

legislation,

I must confess that until recently

banks

funds, have commercial
thought they were at a com¬

It

other

situation
a

recent

be

may

first

bankers.

the American

be

thrift

and

which

has

become

such

thorn in the side of commercial

Bankers Asso¬
ciation

there

me

and

another way of taking care of this

in

as

to

occurs

segment. But
weeks,

that

Banking functions might

realigned

banks.

then the In¬

dependent

so

as

to

in

accounts

segregate

commercial

I call attention to the fact

and

several

states

—

Connecticut

Massachusetts, to name two—
already require the segregation of

Bankers Asso¬

ciation

came

thrift
iveugn

forward with

their notions

banks.

in

accounts

commercial

I suggest this approach to

remind my friends in commercial

savings banks, this
characteristic of uniqueness began

of how to tax

banking—many of whom
comers

to

the

shrine

of

are

late¬

thrift—

strikes me that the that there is another side to the
sponsors
of these proposals are coin.
trying to outdo one another in the
If mutual banks
are
to have
degree of punitive, discriminatory their tax status
pale.

savings

to take

a

private savings that will be

available for industrial expansion

Segregated Thrift Accounts

at the expense

of the

because

forced

from

mutuality.

advantage for
segment
an industry

one

of

It

taxation they propose.
Until
recent
years,

changed—and

am

I

never

not convinced that

—let it be

on

of

Chi¬

I

they should

the basis of fair and

It

occurs

to

me

that

an

objective study of the tax prob¬
confronting deposit banking
should differentiate between the

lems

stem from, the
corporate
- Savings
banks
have an advantage in the compe¬
tition for savings because of their
mutuality. Having no stockhold¬
ers, they can pay out in the form
of interest to depositors, all earn¬
ings after operating expenses and
a
reasonable amount for surplus
advantages

history,

that
form.

was

Senate in 1951

from commercial
banks quarrel with the tax treat¬
any

one

♦From

39th

a

talk by Rep. Keogh before the
Conference of the National

Annual

Association

Atlantic

of

Mutual

Savings

City, May 191.




1

Banks,

with

them

at

look

towards

the

de¬

Addresses Mutuals

Up to this point it may appear
that I have been somewhat hard
the commercials. In all candor
address

some

lations

thrift institutions em¬
ploy their funds — the fact that
they invest larger percentages in
higher-yielding long-term bonds
and home mortgages plus the fact >
that they have substantially lower
operating costs—enables these in¬
stitutions to pay higher rates than
the average commercial bank. And

remarks

to

the life insurance

industry and the
cooperatives cannot suffer tax in¬

creases

and

the mutual thrift in¬

stitutions escape without at least
a
serious
review
of
their
tax
status.

as

the

and

rest

well take

of

banking

You make

a

mistake if you

consider your industry, or any

in¬

take the

position that all seeming
preferences and differentials must
come out.
If they can be justified,
then they will stay. But the jus-

leaf from their

a

Banking generally does not
good job in Washington' in its

a

witfi Congress and I am
are doing something

glad mutuals
about
*

it.

Someone has

suggested that

banks have

commercial

a unique
to create
money. It even has been suggested
that
this
power
within
itself
would warrant a special kind of

the

power —

power

tax treatment. I am not going to
attempt to pass on the merits of
this proposal at this time, but I
do want to make this point:

In

situation

a

of

ment

where

one

seg¬

industry turns upon
another segment, seeking an ad¬
vantage through tax legislation,
neither can benefit, and in the
process the entire banking struc¬
ture could be damaged. I frankly
do not feel that the industry can
afford an acrimonious battle using
the legislative halls as the arena.

It is obvious to

member of Congress that

a

to

representing a
type of banking.
savings and loans have few
peers in the art of Washington re¬

fair method for

sirability of savings accounts. The
commercial banks, it seems to me,
have to decide whether they are
going to be commercial banks or
savings
banks and
not
try to
possess the qualities of each. They
should be one thing or the other.

as

are

and

book.

change that has occurred has been
the change in attitude of com¬

must

you

savings

The

could

place in this relatively brief span
to render the rules of eight years
ago unacceptable for today's econ¬
omy?
I suggest that the
only

on

the

"second-class"

relations

I

that

you

Fan industry. They are a worthy
and effective ally and I will say
iiiat members of Congress do not

do

savm£s bankers.

in the law are on the the tax problems of our commer¬
side
of
thwarting inflation.
In cial banking friends. The medica¬
order to
have economic growth tion is not mine, but was pre¬
with stability, we know that a scribed
by a highly respected

tell

allied

be

formula, based
devised by the

as a

bankers

for concern.

cause

fortunate in these tax matters

mutual thrift institutions.
was fair eight years ago, have
conditions so changed as to make
it unfair today? What has taken

me

changes

no

must

I

taxing

have been set aside.
The way

have

If it

mercial

home building.

further

ort

dustry, sacrosanct or untouchable.
equitable tax law designed to en¬
I must say very frankly that your
I venture that these factors have
courage
thrift and economic
day in court is coming and you
ment of mutual thrift institutions.
more to do with the historic in¬
growth and let it not be to give
Even prior to
terest rate differential
between must be prepared to justify your
1951 when they a
competitive advantage to a rival
the mutuals and the commercials present tax treatment.
were
tax-exempt, there was no in the
competition lor thrift ac¬
I know that our committee will
than does tax treatment.
protest from the commercial counts.
want to look at all preferential or
banks. Only in the last two or
For example, I think that Con¬
Commercial Banks Must Decide
differential
treatment that
has
three years, when thrift has be¬
gress must carefully screen new
I would like to pass on to you
been written into tbe tax books.
tax proposals to be sure that any a
come the most profitable source of
prescription that might get at However, Chairman Mills does not
heard

placent conclusions and pious
platitudes. They will need to be
supported by demonstrable evi¬
dence that they are in the public
interest.
If you can do that, you

The present tax

revenue

to the

S. & L. Associations receive
resentative and

Bank

incentive

punitive, discriminatory tax bills against their competitors. He
asserts, on the other hand, that mutual savings banks must

same

National

Mr. Freeman made these re¬
marks before a regional meeting

everything is financed out of
of the Savings and Mortgage Con¬
If people do not have the
ference of the American Bankers
to save, there will not
Association in 1956. Mr. Freeman
be sufficient savings set aside to
said, quote:—
satisfy the demand for funds to
"The proper solution lies not
provide for normal economic
in weakening them (the mutu¬
growth. This, of course, will lead
als).
It lies in obtaining the
to
increased interest
rates and
right to increase our reserves
higher prices for goods thus put
and thus enable us to increase
in short supply.
our
total capital funds and at
An objective appraisal of the
the same time pay a larger re¬
consequences of changing the tax
turn to the saver." End of quote,
treatment of mutual thrift insti¬
end of prescription.
tutions to provide for more tax
of

Rep. Keogh accuses the American Bankers and Independent
Bankers Associations of trying to outdo each other in devising

at the

First

the

cago.

savings.

By HON. EUGENE J. KEOGII*
United States Senator

tification will require more than
unsubstantiated allegations, com¬

commercial banker—Mr. Gaylord
high level of real savings must be
A. Freeman, Jr., Vice-President of
maintained. We know that a great

A Tax Committeeman Views

to

.

(2420)

36

an

of

Members

Congress

are

not

likely to be strongly motivated to
vote for banking legislation, even
when wholeheartedly supported by
the banking industry. It is still a
temptation for Congressmen who
wish to impress their constituents
to get up on the floor of Congress
and
flail
away
at Wall Street
and

bankers

interest

high

rates.

Hopes for Common Ground

sincerely hope that

I

represen¬

tatives of all branches of deposit

banking will reach a common
ground for proposing tax reform
that will be for the best interests
the

of

ing.

country and of all

I

bank¬

in such

future

that

hope

discussions

mutual thrift in¬

the

will

stitutions

continue

to

con¬

duct

themselves with the dignity

that

has

vious

characterized

to this

approach

their pre¬

thorny

problem, even when their opposi¬
tion tried to give the controversy
the appearance of a "back alley
brawl."
I urge you to seize every oppor¬
tunity to inform the public of the
contribution
mutual
savings

banks

1859-1959
RESOURCES OVER

$485,000,000

are

story, but of what you are doing
to encourage thrift and to make

capital available for home build¬
ing and industrial expansion in
every state. You should give wide
distribution to speeches such as
those recently made by President

Tell
such
as your Washington Conference—
and through publications, such as
your
annual report, which you
have just published. You can use
radio—as you recently did.
And
and

Lyon

you

the

Grover

Ensley.

story through projects

your

Union Dime

making to the econo¬

have a good story to
tell, but much of the public—in¬
cluding some members of Con¬
gress—are not aware of it. I am
thinking not so much of your tax
You

my.

can
advertise.
competition is

I assure you
going to get

tougher. The hour is late and you
cannot

SAVINGS

BANK

must

the

afford

to

wait.

The

race

always be to the good—not

glib.

t

Main Office: 1065 Avenue of the Americas at 40 Street, N. Y. 18

Murray Hill Office: 261 Madison Avenue at 39 Street, N. Y. 16

Greyhound Sees. Opens
Greyhound
engaging in

Member Federal Deposit Insurance

Corporation

a

Securities, Inc. is
securities business

from offices at 15

William Street,

Officers are Ed¬
Henderson,
President;

New York City.

ward

F.

Alyce Panzer, Vice-President; Dr.
Louis Orens, Treasurer;
fewt/v-:

'

Schwartz, Secretary.

and David

Volume

189

Number 5850

...

The Commercial and Financial Chronicle

(2421)

both of these divergent views are

Weakening of Savings Banks

Strongly held;

' c:
t

:Reviews Tax Controversy .u
:

uk

,

One other matter that I might
a few remarks about is

venture

By WILLIAM A. LYON*

savings banking, taxation and the

Retiring: President, Nat'l Association of Mutual Savings Banks

American Bankers Association. A
number of things were regrettable

„

and

abput

President; Dry Dock Savings Bank of New York

the

that' they wanted to start- writings see commercial banking wanting
prescrip.tionsbefbfereven'anfele-i to;take;dn^ a,-greater -share ofthe
mentary' diagnosis eould be com-; responsibility for attracting sav¬
pleted. Watching their, efforts, we3 ings- without, showing any sort of
felt something like th'e.'mission- readiness to assume; the obliga¬
aries tb cannibal country observ¬ tions of
institutions to the
ing the fire * beginning; to crackle community. Consider what would
under the pottake place if the ABA's tax ideas
,

•

"

:i:r.

In the haste to

produce some¬ should prevail. Savings banks and
savings., and loan. associations

t a t e things thing— anything—without a mo¬
at; the ABA convention ment's delay the ABA represen¬
•in Chicago last September. Sav¬ tatives came
up with a tax for¬
ings banking and the ABA offi¬ mula that was inequitable, ill con¬
cialdom did not begin, to do until sidered and unworthy. Then an¬
after the convention what they other
group
of ABA members
really should have been doing for found fault with the tax scheme
some time
before, namely, talking —for the wrong reasons, it might
over any problems that
may have be added—and so the tax. baby
arisen. I cannot help but think it. had horns and cloven hooves added
was
unfortunate for
the
ABA, to it before it was out of the crib.
some
months before Chicago, to
Favors Segregated Deposits
depart from its usual way of do¬
ing things when an association ; Such actions cannot help but
attitude toward a piece of legis¬ create unfavorable
impressions.
lation was being formed.
Haste of this sort is associated
sorry

s

.

more

than pique in retiring

charging the ABA with formulating
considered" tax formula to

President Lyon's message
an "inequitable and ill-

resolve the current tax dispute

between the two banking groups.

For he raises the economic
question that if commercial banks do not accept segregated
deposits, and mutuals are taxed as proposed, then where would
much of the funds
The banker
no

avers

come

for mortgages and

long-term bonds.

savings banks and S. & L. Assns. would

longer be able to attract deposits; that commercial banks
no
part of mortgage lending on their own account; and
that Fanny Mae would be the last sort of resort.

V; It would
a

seem

When

to be in order for

bigger place for itself in the sav¬
ings field. As part of its program,

retiring president

of the Na¬
tional .Association to offer a sort of

testament.
course.

He

has

traveled

it

some

of

is

thrift

is

He

the ABA found

its members demanding that a po¬
sition be taken on the Curtis bill,

seeking to have specialized
affecting thrift institutions' tax
institutions pay out more,
status and dividend-paying abil¬
substantially more, of their earn¬
ity, it did not follow the course
ings in Federal taxes, which would that
had been customarily. It did
impair their ability to pay out not
ask the legislative committee
dividends to savers.
This would
of the savings and mortgage divi¬
be intended to improve commer¬
sion for a recommendation on the
cial banking's competitive position
bill. This

the

Their

ability , to * attract r savings
They wouldn't
much money to make
mortgage loans or to buy long-*
term bonds of corporations, mu¬
nicipalities, etc. Where would the
public turn, then, for mortgage
money? To the commercial banks?
Hardly. A good many of the larg¬
est and most notable among them
want no part of mortgage lending
for their own account. Where else,
then, would the mortgage money
come from but Fanny Mae?
There isn't much profit for the
usually with people who are run¬
ning scared. When savings bank¬ American people in that. To me,
ing proposed that the groups con¬ that is what has been missing in
would be reduced.

have

as

,

want

>

-

would have to cut their dividends*

reached

There is

17

sider the

advisability of

the tax talks—an awareness that

commer¬

no one

cial banks segregating their sav¬
ings deposits so that a base might
then be erected for equal tax

should be content with any

tax

change that did not clearly
not going this
advance the interest, not of this
way again.
treatment for equal services, the competitive group or that, but Of
Well, to be¬
idea was
dismissed with ~ scant the public as a whole. I somehow
gin with, the
ceremony or reason given.
And believe that Congress is going to
retiring presi¬
take its time, free of pressure and
committee was deliber¬ yet the ABA must, know that it
dent
in the thrift field and weaken that
would
ately by-passed and jurisdiction does no good to talk about tax panic, in making any ta* moves.
have to say
of the mutual savings banks and
I expect that it will carefully con¬
was seized
in the very first in¬ equality unless the separate de¬
that the in¬
the savings and loans.
sider these moves and see to it
stance by the administrative com¬ mand deposit function is split off
With all this going on it be¬
dustry is go¬
In that self-interest has been surely
mittee. The administrative com¬ from their., savings function.
hooves savings banking to deter¬
ing through a
drained out of them* The sense of
mittee, as the ranking body, was that way - the savings might be
mine a course of action for itself.
pivotal period
of course perfectly free to over- reserved, for home financing; and increasing alienation from ABA
in its long histhat some of our members have
And the need to choose a wise rule the
savings, and mortgage di¬ long-term- capital purposes; just
felt is not hard ta understand
tory — the
vision's legislative committee, but as savings banks now reserve their
course is a desperate one, for in
kind of time
under the circumstances.
in a voluntary membership asso¬ vfunds^/^
these things an industry does not
when a coher¬
It is my hope that solutions can
ciation the rights of a minority
William A. Lyon
Where Would Mortgage
ent, industry¬
always have a second chance. It's
be found in this sorely vexed field
group are not to be lightly, or
wide trade asr
Funds Be?
"
better to be right the first time. under
of taxes that will be genuinely
pressure, interfered with.
sociation is more valuable and
It must be disturbing to any worthy of its significance ta our
In a trade association, though, the
The
dragon's teeth were sown
indispensable that ever. The sav¬
right then from which we are now person with an objective view and country. When we find where the
ings and loan associations are decision-making process is not
broad responsibilities, such as leg¬ public interest :really lies, that is
reaping the harvest.
surging forward and are occupy¬ usually carried out with corporate
islators are expected to have, to where we should all rest our case.
Decries ABA's Haste
ing a more and more important promptness and unity. The one
place in our national financial
Savings banking tried to get
sure, absolutely reliable fact of
scene. Commercial banking,
amicable and reciprocal relations
slowly
trade association life is that there
and
recently awakening to the
back on the rails at Chicago by
opportunities that lie in the han¬ will be a diversity of views about suggesting the perfectly normal
.

'

,

.

•

,

_

,

*

dling of thrift moneys, is trying
urgently to carve out a

the

hard and
*Froin

39th

a

talk

Annual

Association
Atlantic

important
will

by Mr. Lyon before the

Conference
of

Mutual

of

the

National

Savings Banks,
18, 1959.

be

is neither

announcement

an

to

be

followed

matters.

two

be

view that

City, N. J., May

This

course

Often

principal

emerge,

on

all

there

of

points

offer

The

to

sell

nor a

to

the reliance for composing differ¬
But it turned out that the

ences.

and they will

diametrically opposed. Usually

solicitation of

an

be followed of turning first
discussion and consultation as

course

ABA

representatives

selves to

offer

to

buy

any

felt

them¬

be under such pressure

of these securities.

offering is made only by the Prospectus.

NEW ISSUE

175,000 Shares

Miami Extruders, Inc.
common stock
•

'

'

($.10 Par Value)

Price

$3.00 Per Share

Copies of the Prospectus may be obtained from any
dealers

or

qualified

brokers only in States

to act as

of the undersigned or other

brokers are
legally distributed.

in which such underwriters, dealers or

dealers, and in which the Prospectus may be

Savings Bank
NEW

A

Aetna Securities Corporation

YORK

MUTUAL
INSTITUTION

Roman & Johnson
Member Federal Deposit

Stanley Heller & Co.
May 26, 1959

.




'

CITY.

Insurance Corporation

Michael G. Kletz & Co., Inc.

~

I

.

Ifi

The Commercial and Financial Chronicle

(2422)

—and

Mutual Savings Banks' Functions
Assist a Growing Economy
j-.

;,.v,By DR. KARL R. BOPP*

trying
to
promote
self-interest, also promoted
the public
welfare.
The
mutual savings bank has survived
their

and

President, Federal Reserve Bank of Philadelphia

[

Philadelphia, Pa.

f;

Central banker underscores the strategic role of mutual savings

l

banks

i

for

of mutuals' development and finds their objective
is still the same excellent one as it was the day they started.

both

savings
banks
established
to

individuals

welfare.

Because

were
serve

the

and

public
institution

the

mutual

of

it grew, pros-

r

,

economic

con¬

have

changed : be¬
yond recogni;tion in the
Century and a
half

since the

first

mutual
Karl

opened its
doors

for

R.

Bopp

r

:

business; notwithstanding these
changes, the influence of the mu¬
tual savings bank is still salutary.
The chief purpose—to encourage
thrift — was a good purpose 150
years ago and a excellent objec¬
tive today. It is an objective that
Still conforms to the best interests

rof the individual; and within the
framework

of

and

current

pro¬

spective economic conditions, it
•is' art objective which dovetails
neatly with the over-all objectives
of economic policy—price stabil¬
ity, full employment, and sustain¬
able economic growth.
'

'

I will presently discuss in more

detail

this

tween

close

relationship be¬
objectives of mutual
savings banks and economic pol¬
icy. Permit me first to review the
development of mutual banking.
X think this development provides
a

key to understanding the role
hmtual savings banks play in a

|
-

economy.

Development of Mutuals
When

the

Reverend

Duncan established

Henry

the first

mu¬

tual
;

savings bank in Scotland in
was in harmony with his
age. This "institution operated for

1810, he

the

r
•

,

there was very little
the real savings fig-;
example, real savings in
1952; were exactly the same as
;
.the'ever growing demands of na- they wede in '1958. When we iook
tibnal security and otherrseem- at the period as a whole, I think 'i
we are justified in
ingly vital programs, i
-concluding that
'*-???
i; Because our economy has'- been in absolute terms tbtal- real sav¬
ings out of income have shown no
operating at levels approximating
full capacity during most of the tendency to increase at all despite
; ;
%
195os> expansion of our demands increasing real income.
as

States

established

was

in

Between

Phila-

in

several

1816',

blocks

east of where the Federal Reserve.

Shrinkage in

output.

to^gin Operations
delphia

,

has ^suited in increases in prices
as-well

For

tmnnrfnrX

he

Portant. They ai e important betbey 'help : modify t® .dis-

'Bank of Philadelphia now ;sfcahM:
imagine Today there are mutual savings

Real

;1952

and

Savings
y

1958

J

our

population, however, did increase.
On a per capita basis, real
savings
out of disposable income show
some

variation over the years, but
7% less, than it was

in 1958 it was

in 1951, while income was over
deman(*s upon resources,
wealth of a country to banks in 17
states, primarily con- 4: - Savings represent transfers of 8% more.- This
suggests that in¬
in," Adam Smith had con¬ centrated in the northeastern sec-v purchasing power from one group dividuals and families are
actually.
cluded not long before
in The tion of the country. When mutuals of spenders to another; they persaving less in real terms out 6f
Wealth of Nations, "every prodi¬ were
first
established; in
the riiit expansion in some sectors of growing incomes.,.
•:
^.
gal appears to be a public enemy United States, commerce and in- our economy by limiting expanWhile
personal
savings haye
and
every
frugal man a public dustry were concentrated in the^-sion iri others. Because an inter- been
-lagging, f; the; demands - fbr
'benefactor."
; r
0%-''
large cities on the eastern sea- ;est'must be paid for borrowed > funds, as I have pointed out, have
Reverend
Duncan
and Adam coast.
Agriculture was the pre- money, sayings are typically in- been expanding; There have been
Smith lived at a turning point in dominant
activity in most sectiprts vested in sectors which, under the fl dramatic increases in the? demands
history. The world had been one .of the country.
Beyond the east- pr^sure .of 7 demand , and often for funds- in many, areas ;v there
thing and it was changing into ern settlements, farmers produced1 with access to technological ad->
have been; notable «increases in
something else. In England and primarily for themselves and not vances, ; are*: expanding rapidly.) areas in which
sawingsr hariksJiave
on
the
Continent,
century-old for market. There was less
ripecK This! / is thfe manner in which we traditionaliy been active. As you
customs were being destroyed and
for mutual savings banks onthe achieve ^growth
in an economy know, we have had, a housing
new machines and industrial tech¬
frontier.v By the time these
boom during the.i l95€Ts and, as I;
froii^- operating at full capacity.
niques were being applied to the tier areas had become
sufficiently * ' Twenty-five years . ago many ; have already mentioned; a- great
production of goods and services.
expansion in ^government expen¬
Agricultural workers were being
ditures.
{>
uprooted from the land and were
The coming), decade; most ob¬
moving to the burgeoning indus¬ come interested in
savings. The • was reasoned with justification servers believe^ is going to be one
trial centers.
ability to invent new institutions'!? thatone man's spending was an- of growth and prosperity.
There
For centuries peasant farmers has always been a
strong charac-; other man's income; and to in- are certain fundamental forces
had belonged to the land; but the teristic of American society; and:
crease' income, it would be wise, that may well, make for rapid eco¬
land had also belonged to them. where
mutual
saving s ; banks;;to encourage spending, not thrift.! nomic expansion; our population
Advancing commerce and indus¬ blazed a path there was^-soori a -Of
course,
savings can also be is increasing and our technology
try were tearing apart the fabric
are not in
is showing unprecedented devel¬
of their old ways of living. These
opments.;,..';.
I'
people were in need of new bul¬
I expect that there will continue
warks
against the uncertainties tuals
first successes,
to be large increases in the de¬
extraordinarily since the
1930s,
and
fluctuations
of
industrial
they have survived and. grown. ' w
h
learned a ereat deal in mands for funds — including the
civilization.
Today there are over 500 mutuals
-nmcess
saving
and ' funds, held
by mutual sayings
Public-spirited men saw that„d possessing over 22 million ' actruth there; banks.
Many foresee a building
savings
bank,
by
encouraging counts. Mutuals still do business
in
the late 1960s; and it
Drooosition
of
the boom
thrift, could help these new work¬ with the small saver. The
would be unrealistic to expect' a
ers; it would provide a place in size of the account is under $2,000..
curtailment in the; demands for
which they could set; something Mutuals
possess
total assets :; of |;0;economic^growtn^there j5,ee . _ funds
by governments.
r;
over
^^7
hi ninn
nf
taiply none .today. Far from.havaside
for
a
"rainy clay." ^ The
If we are to accommodate these
farmer still frequently;
welched
demands and grow without infla¬
the rainy day; but
the

.

.

.

may

real

consist

.

Tbout

advancement

of

human wel¬

fare

through the encouragement
Of thrift" reflected the most en¬

.

Incndtoe ? WhSer

.

for^jthe indus¬

the

f growing

.

1958,

variation in

.

General
ditions

,

,

ure.

our

■

and

5

K

and Growth

■

and

and

zens

.

ing" was wise¬
ly conceived,

spread.

we

a

improving tastes; as citi-

also we have sanctioned our
Federal ^Government continually
to ihcrease expenditures to meet

Thursday, May 28, 1959

•

savings bank¬

pered,

"Whatever

of individuals
public benefit.

strivings

..

mI

150 years

Mutual
originally

the

security into
Location

as an important factor in the struggle to help overcome
savings-lag which threatens to hobble our economic growth
and to erode our currency's purchasing power. Dr. Bopp scans

,

prospered because it has been

vert

the

■

own

institution that has helped con-

an

f

conduit—channeling these

individuals

.

{

a

savings into investments.
Adam
Smith had seen that in many cases

...

trial

the

worker

acquired

Before the development of mu¬
tual savings banks,

there

obiilations^;tr^,led

had Federal Government
By virture of the large

term

meaning.

new

a

was

no

number

tion, it is of. great importance that
by .t00 little,savi?gs- <
the historic objective of the mu»
^Personal ,savings statistics cer-tual sayings banks be fulfilled.
^y

of people with whom mutuals. deak:tainly suggest this. Between 1951
and the large dollar .volume?' oP ahd 1958 disposable personal in-

in current dollars—the in¬

The

)

savings banks

as

you

can

has an important * function in
growing economy.- Mutual say¬
economy . of--the? come which.people actually have,
lodge their savings and earn in¬
country.
<
:
.;to save or-spend—increased about. ings hanks can also contribute in
terest.
Individual
workers
and
From the point of view of at- 37%. "Qyer^^this same period, per¬ another way.
Traditionally, mu¬
tradesmen could not save
very
tuals have
secured
funds from
much; nor did they have the taining our over-all economic ob- sonal, sayings out of this income
To
background and experience neces¬ jectives, this influence, as I men- Vincreased-^;by only about 19%. In- people with modestr incomes.
When we comes increased faster than sav.- the extent that these people spend
sary to invest wisely what they tioned, is beneficial.
observe the
an exceptionally large proportion
did
way
our
save.
The strategic
economy ihgs, because individuals were upinsight
that made the mutual bank a suc¬ has been operating in recent years, grading their current standards of of increases in their incomes, we
the role savings banks play be- living. . They
cessful institution was. that
were spending a can strike an exceptionally effec¬
the
larger proportion of their incomes tive blow against inflation by per¬
savings of small savers could in comes apparent.
on consumer goods,
total be very large —
suading them to increase their
certainly
Economic Recovery and
"
v
When we deflate these income savings.
large enough to be put to use in a
place

where

small

savers

could

assets, they exert

fluence

a

significant in-

come,

the

on

see,~
a

.

Monetary Erosion

savings figures so as to elimiUrgent Problem of Inflation
nate the effects of price changes,
savings could earn a return.
omy
something else is revealed. Over ) I want to underline the urgency
"■'An address by Dr. Bopp before the
A mutual savings bank could the last 10 years.
Our Gross Na-: the period, real disposable income of the need to maintain a stable
39th Annual Conference of Mutual
Sav¬
tional Product in real terms has increased about 22%. Real savings price level.
then be a
We may well be at
ings Banks, Atlantic City, N. J., May 19
reservoir—collecting the
I&S9.
'
increased
about
If we permit
savings of workers and tradesmen
35%, or- about also increased, but only by about a crossroad today.
3V2% per year. ..Unemployment 5%the price level to resume its up¬
^
■
:
has been relatively low, averagward course now, we will prob¬
While real income increased in
ing about 41/-»%.
We have thus; every year but one between 1951 ably find it infinitely more diffi'Statement of Condition, January 1, 1959'
j
far won at least three battles over

capital-hungry

they

lightened thinking of the day.

could

be

economy.

put

to

if

And

use,

and

Over-all,

the American econhas acquitted itself well in

these

,

ASSETS

-

Cash in

KINGS

posit

Vaults, and

our

with

Banks

on

and

Companies

HIGHWAY

sion.

$

Bonds of U. S. Government
Securities of U. S. Gov't

Agencies

Other Securities

Investment

in

5,026,903.39
Savings

SAVINGS BANK

Corporation

Mortgages—Insured

or

1,019,450.00
Guaran-

Ktn^js Highway^and East 16th St.

82,844,201.83

Mortgages—Conventional
Reserves)

(Less

Accrued
earned

Interest
date

to

48,340,114.59

Receivable,
the above

on

938,846.60

Banking Houses

436.020.08

-

1619

Shaepshaad Bay Road

BROOKLYN 35, N. Y.

'

Corporation




Deposit $170,199,613.12

29,669 School Children have

With this

on

Depositors

Deposit

209,712.00

Other Liabilities

Surplus and Reserves

1.074,977.93

..I"

I

as

have

been

nas

was

exception, our record,
said, has been com¬
a

Looking
the

back

decade

tion

of

that

the

14*893*605!35
$189,390,277.55

the

last

the price

in

have

year

infla-'

and

been

rather

demands.

our

we

more

have

date

citizens

as
our

ernments

consumer

state

have

local

high

to

expanding

111

COMPANY

BROADWAY

pro¬
re¬

gov¬

persistently to increase

expenditures
our

we

and

INTER-COUNTY TITLE
GUARANTY AND MORTGAGE

goods

encouraged
expenditures by

of

ducers;
quired
their

better

§

As

demanded

thereby

levels

§

1950s, I get the feel¬

we

inflexible

in

on

( Established 1927)

vital

exception—one that can cumulate
importance over time, and seri¬
ously undermine our other efforts.

of

INSURANCE

TITLE

in 1949.

But inflation is

and

'3,012,369.15

11,836 Christmas Club

*

shortcoming

20% higher than it

consumers

on

Deposit
have

Member Federal Deposit Insurance

on

a

adjust¬

conditions.

new

Our chief

ing

$189,390,277.55

liabilities

91,475 Depositors have

Shaapshaad Bay Office

in

the erosion in the value of
money.
Our price level in 1959 is about

727.191.71

Other

'

resiliency

shown

in

investments
Assets

depres¬

has

economy

mendable.

_—

BROOKLYN 29. N. Y.

ing to

i

teed

Our

remarkable

5,725,631.08
36,721.660.31
7,610,257.96

Banks
Trust Co. and Institutional Se¬
curities

unemployment and

mass

de¬

Trust

accommo¬

populations

j

NEW

YORK

BArclay

6, N. Y.

7-2700

...

Volume

189

Number

5850 v rvThe Commercial and Financial Chronicle

•

19

(2423)

f cult

contain' inflation

-to

in

the

light. ;,. Many. ,peoforgotten' that
the country has need for all the'"

4;v* •'.,
f,V>"
^ Once people begin to expect a

!

heat than

more

future.

pie

VI

have

to

seem

rising price level, -they do things savings that both the savings" and
that make it inevitable.
If they the commercial bankers can per-* .' J
are
afraid that prices
will rise suade people to make. ' I think if •> *"

7

{ next month, they have

a

real

we'.could

in-

'-centive to make next month's purChases this month. They have an

cious, and

•incentive

program'

start

to

•

trade ;

money

proposition

for

this

from

By EDWARD A. MERKLE*

;

£

basic

calmer, more judi->
effective: kind of
could"be developed. V* ifHv,
a

stock

goods, real estate, stocks, and anything else they think will,rise in
^. value.,
When people think and
act
this way, -prices are certain
7 to rise—not'next month, but this

As

indicated, mutuals <•
important'role .; in a
economy.
.If
mutuals v
grow,' they
will in - their ' own >
course help the economy functions

*

-

jlg.The

Course, that rising prices make

it
increasingly difficult to convince
people to save.
The "most strik¬
ing consequence of inflation," J.

•pL Keynes wrote

35

;*aith

at

the

if

expect

Estate Planning

save

tomorrow,

■■■■-

■■

m

»

A

v.

—

—•

.

American

•'v'■■
dustry.in
x; ■;
i J'd u c ing
M

:

?

.

but

ex-

Denver ^; ^the-lajte
vt;

-

^eces^,sion. Many of:

DENVER, Colo. -—-Following
some
five years of intensive re-

a

search, Robert J. Connell, Denver

.

nies found

::r '

the well'

•'

man-

g ed compa-

m.j Taking all this into considera¬

that' they had
accumulated

considerable

happy to

see a grow¬

„.traditional

policies

to

i Sood years

is "

ord of

a

and

c

this

record

will

main-

be

-

J.

such

considerable

*

tax

^great

deal

issue

mutuals

organization

...

; •

FLOURTOWN, Pai-RichardK.
is engaging in a secuTi^

and

ties

business

cial solution for it- But, as an on-

Penn

looker, it

name

seems

to

me

that

the

controversy has thus far generated

k'<'

?4
ti

h
V

bt-

have

seen

goods

picking

are

up

Oak
of

Company.

from

offices

at >108

Road, under the.- firm
Greenwich' Funds

Old

.

v

,

Iind demand knocking at
the door o£ capacity in specific

be soft

must not be soft pedaled'.

.

.

:

ingenuity to find the new favorites while they are still cheap,
Don't be caught up in a balloon
because the sensation

V.C;

share

may
,

,

ap-

„

can

be very

the tiny atom

ing coppers

.

.J:

.

Residential building shares

(7) Papers

.

^

■■mmrnM

*

KMT

iii

twgmt

•

v--:;

•

time during the year,

^ >* "° aS~

.ther. .improverhent
seen

-

..(6)

It should be rCIflGUl"

industries.

Annlvinff

rpnphpH

next year.

may- not

"-

"

'

>

be

■

Mr> Merkle before the As;
Customers'
Brokers, New

alk by
of

sociation

-York City, May

13, 1959.

FOR 111 YEARS DEPOSITORS HAVE BEEN SAYING

ntv

day; take the East River story. Since 1848,
the growth in deposits, in number of de¬
emerge as king of the physical universe.
But what of the humble acorn? Has tradi-> positors, inv.thrift. facilities and'range of
services, and in total' assets—now well over *tional thrift been outpaced by the new
atomic age? By no means! As an example - half a billion dollars-has been truly that
of the proverbial acorn-to-mighty-oak;
of the vitality and magnitude of thrift to¬
J
we

from

we may

The Acorn and The Atom
In our Time

?

|nS the im^etus
^st hot
nldaTpd

.

'■
proximate an annual rate of $4';

a .share some

D|f] Crppiiwif h1- FiinflR

^Complicated; and I have
f

hp

mnv

(for • the per;,DoV.Johes
>
1

Garrison

I

facts

hminn^fc+V,.ess«

was

bllllon may be reacnea. Applying
this to the Dow-Jones Industrial
the First National
Average is rather difficult, but if
a specialized pra^ does
^en^ ^apparent that earning *
.

i> commercial banks is technical and
no spe-

the

ejected in

^

for

that time, estimates are being rehii'iinn

planning of "living estates."
': v
r- .^
^ 7

of energy

-between

bulls,-

nervous:-

of

the

speed. Gross private domestic investment was at an annual rate of.

I, vised and probability is that S51

"'-''a

'•

■

am .sorry to see

there

that

room

investment banker, announced the
formation of Estate Planning, Inc.,'

dis4 sipated in fratricidal combat;' The
a

Connell
,

lessional

problems of the

which
1959

>

.

Robert

stained is ifor mutuals effectively
with offices in
to adjust themselves to the chang¬
Bank Building,
ing times.

\.'l With the major
£ day so pressing, I

expenditures,

-

safety mutuals

£ have enjoyed. . The best insurance

C that

velopment

.

proper

success

fa^tor is 5ising researc^ and de-

-

the

exploitation of
£ this' strategic position.
There is
5ino disputing the remarkable recpmy

billion in

important

_

requireof depositors and the econ-

liments

billion today against $4
1946;, ; Another
very

^08.5 billion in the first quarter,, distressing during the rapid deimprove-; which is a new high annual rate
scent
r ment, but improve they did. I be^
estimates place
the second
Industry groups which I like
...
lieve a study of the record-will
quarter level at $72 billion. The
are:
\
••, ■*"
; show
that the very sharp move important thing is that capital ex(1) Airlines
4 J beginning early this year came on penditures, which normally_* are
(2) Railroads
: the", heels of the Treasury's an- tied,..ln cI?sc|y ,yth$corporate
: profit
are-being directed in the
(3) Selected Electronics
X ihpuncement
that pre-tax con>o- area of
noncapacity items to im(4) Some growth utilities
rate income in the United States prove efficiency. This could mean
(5) Capital goods stocks, includ' would
equal $47 billion.
Since that as the recovery feeds on itself,
■■

,

view to

to

importantly, .capital

expenditures

/

almost

and were

ashamed:to admit

As

.

a

us

examination

an

Most
Edward A. Merkle

credence

.

§ an intermediary in the savingsl investment process, the mutual
£ sayings'bank is in a strategic posi¬
tion in a ^growing economy., Pera forjpance of this act of
intermer
| diatidnt1;^aggr€fssively, efficiently,
and 7with

■

fat during the

rapidly

;

-

"

ling awareness among some savJings bankers of the need to adapt
4 changing economic conditions.

,

Structure

indicates that most of the major-,...
e0iPrtivitv ibt* i
components of the business scene V
feeIectivity the Keynote ;
ihow strength. Residential build-:
What is the net of all this—siming is better than expected, auto- ply, the background that the marmobile buying is expanding, and ket is good, but selection continthe inventory situation, while not ues to be the keynote and we must
as strong as at the
low, is a long be most cautious not to follow the
way from troublesome levels,
favorites too far but to use enough

.

'vpenses'during

■*

in
III

VIIIIVH

re-

•

••

give
worst, .making

m-

-

to;

prone,

■» v\

tion, I

am

major

profits, the big change has been
depreciation, which aggregates $24

have developed mercurial tendencies in the United States and are

..

nr»v\

■

i

Formed
l

;0 If mutual" savings: banks and

people to

,

,.'.

.

interested institutions can
rfcncourage savings today, it will
A. be that much easier to persuade

of

and

*

yother

flow

figure of

'

we permit their
savings continually to lose value.

save

cash

tablished to

"is: and the public welfare;, they still > fT
re
have an .opportunity • to. execute.
a,c cb1 :ir
their sav- their design. J
1 •
' .• ^11 s h .ed b y

cannot

.

jpeople ito

1959

outset,

to money, rather than

vjto things."^ We

4,

uonfirol

in

in

corporations will total $48 billion.
In addition to increased
corporate

(r

Strong Business

Research

is very little discussion of
the overall picture. It is estimated
that

I: do not wish to
I. do not wish to nose as ' an
pose
as
an
onomist.
economist, but vyw observations
but my
,
..
...
.
_
v,11°

six, months, / aside from

thp snarn rpnnunH

t —:j

-

years ago,

committed

have

Sngs to titles

;
'

Se--

tuals will grow.y
Mutual

:

to

v-:

The

its injustice ta those4who >iir good

•;

"

-

5

groups.

economy^^ujttctions

generates increas- A; The mosb important single deof savings-and"■ mu^vJ^°Pmqnt-^ri the stock market in

expected.;v'£;4'.v;Y well, it will
other side of the coin is, of ing amount

'77
4

,

selectivity directed

favorites, he lists recommended stock

and

a

there
*19

business structure has unrealized strength.
Cites corporate cash flow and research activities as
important
bullish, market elements.
Advocating
new

Flow

good deal about cash
flow in individual
situations, but

'

profits, ■? Holds

.

an;

If '.--the

well.

^ month^.and -by more than origi-.
'<nally.

most

important recent
development is the recession-prompted cut in
expenses, with its fillip to prospective corporate

company

have

I

play
growing
can

Cash

We hear

market

"

*

riod of time.

'■

President, Madison Fund, Inc.

Prominent mutual fund head maintains

more

bered that from the
drawing board
to production involves a
long pe¬

Outlook

r*

\

-

'

"

*

1

'

'

f

'

'

Dry Dock Savings Bank has paid dividends at

every

interest period since its

founding, at the highest rate consistent with safety. That record, the assets of
over

600 million dollars, the

offices

are a

.

few of the

helpful extra services, and the five convenient'

reasons

why Dry Dock

serves over

225,000 depositors,!
,

)

Savings Accounts

•

Travelers Cheques

tb. ^.

•

•

Life Insurance

U. S. Savings Bonds

Mortgage Loans

•

•

Foreign Remittances

,

EAST BIVEB SAVINGS IBANK

ti
t'.
|r •

Five

,
*

}

Thrift Offices in New York
110 William Street

26Cortlandt Street

Rockefeller Plaza
41




,

"

-

DRY

.
~

■

60 Spring Street

743 Amsterdam Avenue

-

-

DOCK

Main Office: 742

518 Seventh Avenue

INSURANCE CORPORATION

111 Second Avenue at 7th Strfcet"

at 38th Street

136 Del&ncey Street at

Norfolk

SANK

-

•

-

67 Avenue C at 5th Street 1

,

Assets exceed S620,000,000 •
MEMBER FEDERAL DEPOSIT

SAVINGS

Lexington Ave., New York 22, N. Y.

Member Federal Deposit Insurance Corporation

The Commercial and Financial Chronicle

(2424)

29

living

the

for

people

The

Tax

1954

Rico

Puerto

Director, Office of Industrial Tax Exemption

tax-exemption

designed to achieve mutually advantageous
the Island's economy and for investors and

for

industrialists;

Topics reviewed include eligibility for (1) tenyear exemption on all corporate taxes, and (2) seven years'
freedom from1 all Puerto Rico and U. S. A. taxes on profits

rate

exemption as a
technique for promoting improve¬
ment in the condition of

particularly by the

omy,

tion
-

of

industries

new

novel..

means

There

promo¬

is

are

by

which

no

the

efforts

under Ferdinand

sume

tax

and

Isabella, of

itself

could

in¬

not

as¬

the major burden of making
of
the
magnitude

investments

wine and weaving industries.
♦

new

The

which would be required in order
to achieve a substantial measure

to

purpose was very

much the

same,

to fcreate ah r economy capable of

sustaining a higher standard of
living for the population. The in"

of

equally obvious that the problems

dustrial

which

development prdgram, in

industrialization.

It

became

-

exemption-; is. .an im-;
incentive, represents an
of the
j:>eople of Puerto

tax

grant

preference

'

■;

It must be borne in mind that

the

-

a

emption is

basis.

an.

Thus

certain

does

land

of

and industrialists to

the population

of Puerto Rico

lived in- the most abject poverty.
The first

significant! steps toward

industrialization-were

taken

by

the Government' itself during the

early

years

of World

War II, in

the establishment of cement,

and

paperboard

•An -address
the

by

plants,

glass,

among

Mr. Goldman before
Association.

American; Management

New York City.

operations,

ex¬

and

Puerto

Rican

first day

investors

cover

taxes.

which

,

is

90

as

from

participate in

Tax

debt fakes

period

longer

'

.

of

on

; :- \

y.

^

'

-■

'' I0UCAH0N

Act

and the

heavy debt burdens

today, only 2.8% of the
Commonwealth budget of Puerto Rico is needed
meet

debt service. While Puerto
Rico's debt since 1940 has
remained at a re¬
current

markably low level, its taxable

multiplied

many

times

resources

have

+

.

public expenditures. Furthermore,
roads, bridges
and communications call for

7.8% and industrial
and agricultural
development for over 10%.
s

public

revenues are

being wisely

'■

on

tire record.

final

deter¬

eligibility is by the
the basis of the en¬

c';*

"

The
as

v'4-.'ty

v

Determining ExemptionEligibility
:

to

second

spent

on

a

important question

eligibility, which is applic¬

able to all
der the

.

products* whether

new

un¬

industries section

or

the

designated industries section,
is whether the particular product
is a manufactured product within
the meaning of the law. The ques¬
tion

is, essentially, whether^suf- -V

ficient processing is carried on in
Puerto Rico to justify treating the

for

of thumb >in

income produced from nonmanufacturing sources, such as

constitutes

advance

to what

as

substantial

manufac¬

investment, royalties, and other- turing, since in the manufacturing
license fees, professional service field: .there is a
bewildering 'vari- '
fees, brokerage fees, and general ety of prodiicts 'and processes,
commercial

activities.

Eligibility
factory manufactur¬
ing activities, and does not ex¬
tend to homework operations.
Exemption is granted to eligible

is limited

to

industries

only

manufacturing

by

in Puerto Rico for the produc¬
of eligible products.
Under

on

the

substantial
activities carried
for

tion
the

law

there

two

are

bases

of

eligibility.

One is the provision
of law under which eligibility is
extended

to

articles

not manufactured
as
.

'

Jan.

of

2,

manufacture

for

the

there

did

and

which

not exist in Puerto Rico

date

were

in Puerto Rico

1.947,
of

which

as

of that

each

presenting

features

r

and

its

own

problems.-

special
Where "

products

are
obviously trans¬
formed irorn raw materials In one
to finished products in an¬
other, by manual, mechanical or
other processes, the question of
substantiality is not likely to arise

form

often.

too

arise: in

" It

is

those

components in
of

likely

more

situations
an

to

where

advanced state

fabrication

are
subjected to
processing or where in¬
gredients are mixed and com¬
pounded -by relatively s im pie
processes.
S'y,:vr
y-y;,- v

further

the

•In

administration

of

'

are

program

of

evident through¬

Commonwealth.

Puerto Rico's proven
capacity to build future
progress and

improve the welfare
current income

Commonwealth

to

operate

of its

a

a

moderate

basic factor in

the soundness of Puerto
Rico's general

tion bonds
which, at current prices,

substantial tax-free
income,
bonds of the various

as

people

has enabled the

with

debt burden. Low debt is also

do the

obliga¬
provide

revenue

Authorities.

37 Wall

.

the

facilities for the production

of such articles.
of

become

exempt.

.

..

,V

.

In general, the basis for eligi¬
bility of products involving sub¬
stantial equipment or technology
has, in most cases, been the "new

dynamic, diversified

development. The results
out the

/'.'••

•

| f

operation involved as manufac¬
turing Within the law. It is ex¬
tremely difficult to devise a rule

Street, New York

products" section of the law. Thus
wide

variety of products in the
plastics, electric goods, electronics,
metal
products, rubber, and a
wide variety of other fields have
a

been

the

found

new

law.
tions

to

be

products

eligible under
section of the

The designated industry sec¬
of the law have afforded a

basis for

finding eligibility in the
needlework fieldl,
including
men's, women's
and
children's
outerwear, and underwear, and
the food industry, industries de¬
.

voted to handicraft products, arid
industries utilizing certain locally

available

raw

materials.

Generally in the determination
eligibility of any given product,
two
important
determinations
of

5

N

the

unit has been established and has

t-y-'S-'S

AGENT FOR THE COMMONWEALTH
OF PUERTO RICO

4591, San Juan, Puerto Rico




the

cases

of

y

.

GOVERNMENT DEVELOPMENT
BANK FOR PUERTO
RICO
FISCAL
P. O. Box

all

,

.

11123 ^ n

largely out of

over.

Education, health and public welfare account
for over 50% of Puerto Rico's
1958-59 outlay for

Puerto Rico

that

that it be clearly understood that
the Industrial. Incentives Act does
not confer tax exemption benefits

A

distribution

,

of many governments

to

us

•-

•

Rico's

to the

in

But

:

Incentives

New Products Eligibility-Basis

pleasant contrast

warns

investigation is indispensa¬
bly necessary before any judg¬
ment ol' eligibility can be "macfe.

Governor

fUBLIC WELFARE

Tn

the

law, we have sought to avoid the
The second basis
application of any inflexible rules
eligibility is the designated in¬ of thumb for
-determining the
dustry section of the law,
in question of substantiality of man- .
such persons at any time during which
31
industries
involvingufacturmg operation. The reason
the ensuing eight years. It may be products produced from local raw for this is that in our
continuing
materials, or involving skills al¬
experience., we have been able to.
ready developed on the island, or bbserve>thatih the almost infinite
involving other possible benefits
variety of possible manufactured
to the economy, are specifically
products, the elements of labor,
designated as industries in which
machinery and equipment invest¬
tax exemption may be available
ment, technical skill and know--'if a new unit is established after
how, and numerous other factors, ,.! y,
Jan. 1, 1954, which substantially
appear in different quantities and
~
increases the tptaj volume of prp-j
relationships
from
product
to
;J. duction of the designated' article/
product.' ;Under the law, "a broad
>' as measured
by the average pro¬
flexibilityirs_nmde'.-available for
;
duction of the years 1946 to 1948.
the resolution offhbse problems..
y.
The Act also /contains a* "grand¬
father": clause If or- existing;-units >•: The toucbstorie is \vhether the;?
manufacturer has come "in good
;
of
such
industries
established
/v
•••• < i
f
prior to Jan. 1954, which may be faith, with an operation which
i
A
HEALTH t
will create the type of benefits for
eligible for exemption after a new
■■

from

BUDGET

few

,

^

a

Puerto

a

to

development in

Puerto Rico in 1947

mination

X

In

as

fresh

...

Tourist

and

knowledge

our

state of economic

seeks to encourage the creation of

which the people of to
profits derived from the first
Rico, its government and seven
years of operations paid to
the private industrialist engage in
a
resident of Puerto Rico er any
a joint effort, involving coopera¬
other jurisdiction where such in¬
tion and mutual understanding to
come
is not subject to tax. The
achieve benefits for all the par¬
profits of the first seven years
ticipants; successful and profitable may be retained and paid out to

THE BUDGET DOLLAR

magnitude

a

total investment

wide range of products.
cases

n e w

of profits and dividends to stock¬
holders is available with respect

in

improvement in the standard of

the

Industrial

The

Puerto-

operation for the industrialist, and

of

made

carried on by the Economic De¬
velopment Administration, it is
possible to make a reliable pre¬
liminary prediction as to eligibil¬
ity with respect to an extremely

■■

of first factory produc¬

exemption

of such a,
product.';
light of the existing body r
findings on eligibility which
reflect
investigations already

the

.

Common¬

defined

days

manufacture

In

Investments

tion payroll.

a great "Do-It-Yourself"
program.
But it is a "Do-It-Yourself" Pro¬

gram

are

make

Commercial

exemption

franchise

not

regulation

invitation to main¬

World War II, a considerable part

and

tax

the property tax
additional invest¬

elegible for a
exemption.
'■'?

,

-sound

in

of

if

which

with

of their industries in Puerto Rico

the beginning of

as

duration

ments
res¬

could be met and

on

recently

investment

an

$10,000,000. Provision is

exemption

a

^

as

of

'

-

exemption,

from

,

$1,000,000,

manufacturing enterprises
expansion of certain other
enterprises specifically designated
The
benefits
conferred
by a by law, which may have special
grant of industrial tax exemption significance for the economy. The
under the
Industrial Incentives Act also offers tax exemption for
Act of 1954 include corporate tax the
establishment
of
adequate
exemption, tax exemption on in¬ commercial and tourist hotels, and
come derived from dividends and
for
the
erection
of
industrial
profits of exempt industries under buildings, to be leased to tax ex¬
specified crrctirft&tanc&s, jiFdperty empt industries. It is important
taxes.

of know-how, management, mar¬

persons

slid¬

a

made for periodic readjustment of

solved only by wealth exise
taxes, some of which
active backgrounds are covered by separate legisla¬
effort
in the industries which might pos¬ tion
conferring exemptions for
Rico and its Government to. trans¬ sibly be developed in Puerto Rico.
manufacturing raw materials and
Tax exemption was devised as
form its.? economy from one of
production equipment. The corpo¬
deprivation and want, .with an al¬ the major incentive for inducing rate tax exemption is granted for
most complete dependence on the
persons
with such backgrounds a period, of ten years, which starts
sugar crop,, to a diversified econ- to invest their capital and apply with the date of
application, if
know-how
in
omy capable of fsnstaining a mini¬ their
setting up the applicant industry is already
mum
deeent ' standard .of living plants
and
creating
the skills an production on that date, or if
on a stable basis.
Which would, enable establishment not, the date of commencement of
•......
y,-, v
tax

pdrtanf

than

less

for

years

excess

receive divi¬
profits distributed from
the earnings of the first seven
years of operation free of Puerto
Rico taxes, and free of U. S. in¬
come taxes—in a word, free of all

keting, and

consumer

is

vestment

ten

Revenue Code, may

promote

exemptions

in

and per¬
on

and gradations up to a period of

exemption from all corpo¬
taxes for a period of 10 years.
are

real

property taxes is

dends and

The

Government

States

ity with the requirements of Sec¬

dustrialization should be pointed.
conclusion emerged that the

records

usej in states of Medieval
Spain, prior to* the unification

of the

United

sur¬

ing scale, with a minimum period
of five years where the total in¬

corpora¬

tions 933 of the U. S. International

achieve

to

certain

sonal

idence in Puerto Rico in conform¬

tion of these enterprises a body of
experience was developed which
served to clarify the direction in

econ¬

an

Rican

of

of

Exemption from

the
ex¬

position to establish bona fide

others. In the course of the opera¬

of tax

As

Those industrialists who

dividends, and status of real and personal property and
other taxes. In describing the basis for eligibility and other
aspects of the tax measures, Mr. Goldman makes clear the
Jaws do not apply to mainland run-away firms.
use

respects

treatment

tax

Puerto

and

some

nature.

plete

and

The

in

accumulations

plus does not apply to tax exempt
industries.

organized subsidiaries of main¬
land corporations, a grant of tax
exemption
under
the
laws
of
Puerto Rico may result in a com¬

incentive-laws
benefits

the

to

tended

tions

outlines

Administrator

Tax

their

of

result

Commonwealth of Puerto Rico

Rico's

are

in

unusual

-

reasonable

incentives

offered by the Commonwealth of

By MAX GOLDMAN*

Puerto

exemption

ticular product was manufactured
Jtica Income TajcXaw of; in*. Puerto Rico and whether on'!
imposing a surtax oh un¬ that date facilities existed for the

Puerto-

?
Unusual Incentives

Offer Mutual Benefits

Thursday, May 28, 1959

.

noted here that Section 102 of the

Puerto

of

Rico, *

.

.

Y

must

be

whether

made.•
on

Jan. 2,

The

first

1947 the

is

par¬

of
Puerto
Rico
sought by offering the
tax exemption incentive.
These
benefits may be reflected not only
by magnitude of employment and
economy

which

r

are

payroll,

but

also

by investment,

nature of the skills

involved, and
importance to other industries in

Puerto Rico

supplier or user
Tax exemption
be granted in those cases
fair analysis of the facts

of their

will not
where

a

discloses
Puerto
and

as

a

products.

that little

Rico

that

in

will
fact

processing in

be

carried

on

substantially
finished product is being sent to
Puerto

Rico

for

benediction, and

a

a

a

Revocation

sea

voyage,

a

tax exemption.
Grounds

the

In

preamble, or statement
of motives, of the Industrial Tax
Exemption Law of 1948, the Leg¬
islature

of

Puerto

Rico

has

ex¬

pressly declared that a grant of
tax exemption shall be regarded
by it as in the nature of a con¬
tract, and no action will be taken
by the legislature to impair that
~;

"

-

Continued

cm

page

29

*

-v

Volume

189

Number 5850

.

.

.

The

Commercial

and Financial Chronicle

21

-(2425)

merger the
in a tight

shares have held first test

was last year when /.LiltM fiol aiHro Haadk
of only a business 'dropped offThe W""
ncawo
dozen points despite the wide
profits Were thoroughly- re¬
moves of the
general market spectable,
nevertheless,
al¬
and other electronics.
By WALLACE STREETE
Sperry though operating rates - had
Bank Association
is a supplier to all three mili- fallen r to
levels
that autoDelegates to the 39th Annual
tary services, is the largest matically had been expected Conference of the National AsIndustrials
repeated
last year and off half a score of producer of hydraulic equipn.n(i11nn w™
w;+u
•
sociation of Mutual Savings Banks,
week's performance this points from the final
posting ment and a leading producer
May 20th,
week, nudging to within a of last year. Despite the fact of office
equipment ranging of 4 to 4'-% available, and elected John
fractional touch of their all- that holders in this issue have up to the
million-dollar, mas- profit-times-earnings ratios of >President ot'
time high and then
shying had to be content with small sive Univac computer.
1 ;
10 to 12, investors generally the Farmers
*
away from any penetration stock dividends, never cash,
T *
*
still seem unwilling to grant ?Cg sawin^s'''
with some mild
selling fol¬ the issue soared to nearly 74,
Sperry-Rand consequently thai steel companies have Bank of Minlowing.
\
7
against last year's low of
around 21, in the rush to get some of the
electronic issues; ceased to be uitra.cyclical. It the Plfsiden- ;

F

range

.

THE MARKET... AND YOU

*o produce losses. With yields

,

*Jar

■'ifThey had little
the

rails

which

help from

aboard

last

diversified than

wagon.

week

the

electronic

band

that have been

so

popular.

It

,

.

^

does, however, mean that the cy of the Nagroup generally is one that is
for^the

Deleting it from the had some trials following the
one large bro¬
1955 .merger
that affected not overpriced whenv. meas- vcoming year,
est
posting since 1956.; but kerage house was what, set profits and, in fact, is still ured
against the yields and
then also turned reactionary. off the selling, nominally.
not notable as a profit-maker
ratios prevailing elsewhere in year as Vice•»<>«»* deuuttre
❖ ;rf./
The carriers are being influ¬
*
largely because ot small profit
j-y
■ *
President of
enced to a great degree by
Apart from these sections margins on government conthe Association and succeeds Wilthe
possibilities of a steel that dominated the spotlight, tracts. The company was afET*ie
expressed in this liam A. Lyon, President of the
strike which could mar their the overall market continued ieciea hV lnct vpnr'c rpppccirm article do ?iot necessarily at any Dry Dock Savings Bank of New
fpefpH
Dy last year s recession

brpke through to their high¬ master list in

•

good recovery from last year's to be a collection of favorites but is bouncing back strongly
operations and give them that had already discounted with projections indicating its
a
rough third quarter. The much good news of the fu¬ sales will reach the billion
rail followers, consequently,
ture, plus a list well sprinkled dollar level this year. Strides

low

have been cautious.
Dear

with items that have not par¬

taken

Utilities

continued

underway

some

ulation

showed

less

than

>*

suits.

of the York. This occurred at the Asso-presented ciation's 39th Annual Convention

those

are

held at Atlantic City, N. J.

_

■

Other Officers

■

Nafi SfiCliritV AlOlVStS
■■

ft

Elected

to

the

Vice-Presidency

of the Association was Edward P.

■

Clark, President of the Arlington

UUtlllg OR JIIII6 Zu

Money Hurts Utilities

slow retreat

with

those of the author only.]:

as

recently to improve the

ticipated at all importantly in earnings picture should give1
the advance since the reces¬ it a substantial improvement
their
sion low was scored.i One tab¬ over last years
depressed re-

coincide

Ume

«ChronicleThey

The Seventh Annual

Outing of
The New York Society of Security

chuseU^^AHred1 ^B.
of the-Bank

dent

for

Savings in

Analysts, Inc. will be held Friday, the City of New York, was elected
269 stocks that were selling
*:;/%,,:v,June 26, 1959 at the Westchester Treasurer of the Association,.sucmarket is making its influ¬
Whilp
<;nmp
nf
thp
nthpr Country Club, Rye, N. Y., Ralph ceeding Frederick-V. Goess.Fres-.
S
appreciably below their highs
? }
ence
felt here, particularly
1
I 1 A- Rotnem of Harris, Upham & ident of the Prudential Savings
of 1957.
:V
groups dependent on the steel cc>. and President of" the Society Bank, Brooklyn," who has served
since a couple of the week's
two months

now.

no

The money

❖

mills have been

high-rated bond " issues
priced to yield 5%
to the purchasers with the
coupon
rates nudging over
the 5% line. It makes a com¬
mon stock in a public utility
yielding 4% or so anything
but a bargain. In the case of
Con Edison a yield of 5.05%
on the bonds was the highest
it " has
paid for long-term
money in nearly a third of a
century and compares with
about
414%
yield on the

Electronics

new,

had to be

common

stock.

There

are

Laggards
some

even

items

participate in the

such

re¬

such issues,

cent demand for

nervous

announced.

over

' possibility of a steel
strike, the shares of steelthe

in the electronics section that

failed to

V

::, 4

*

™

makers themselves have had

change."

'
:
,
Providence Branch

good popularity, enough, in
fact, to carry several to his¬

P. R.

Mallory which toric highs while others are
hasn't yet rounded out two
hovering just under them.
full years of listed trading.
The Non-Cyclical Steels
This issue has held in a range
as

of around

Treasurer

as

for

the

Phil Bunnell Named by

Harris, Upham & Co.

r

Harris,

Co.,

&

Upham

a

Broadway, New York City, mem-

opened a branch office at 57
under the manage-

bers of the New York Stock Exchange, has announced that Phil

has

Eddy Street

ment Of Harold G. Lash.

.

dozen points

w.

Bunnell

has

been

appointed

if

.

the other dividend-less
soared

items

the

companies
companies

wildly, Mal¬
acutely
lory is a long-time dividend
The
discrepancy between payer with a yield of around
bond and stock yields, in fact, 3%.
%
#
-f
was
one
of the few danger
Like
business generally,
signals flying to indicate that
stock prices were high. Tech¬ Mallory's sales and earnings
nicians found few other warn¬ were trimmed last year but

have

been

°nda® t^e

so

direction of Basil Ske-

ward

S.

Harkness

and

Commonwealth Fund.

The los.

conscious.

cost

.

showed up in the
year's final quarter and con¬
ing steadily and which, in set¬ tinued into this year to where
backs, is counted on as a sus¬ per share earnings for the
taining force to counteract first quarter were well above
double the results in the same
selling.
period last year.Company
Summer Rally Ahead? :
projections are for record
With Memorial Day about sales and
earnings this year.
at hand, the optimistic clan
Up to here Mallory hasn't
was counting on the summer been
as
deeply involved as
rally, one of the more pro¬ some of the other electronics
nounced of the seasonal influ¬ firms
in
military business,
ences, eventually to carry the some 15% of total sales ac¬
industrial
average
through quired from such business,
recovery

interest that has been declin¬

area for the first time but is
stepping up that activ¬
history with the goals for ity and expects to double the
the swing scattered anywhere
present volume within the
between 660 and 685 depend¬ next three
years.

the 640
in

ing

on

the yardstick used.
*

Attrition

af¬ ganization

long-popular "space
age" items, notably the elec¬
tronics. Raytheon, which was
-

first

in"

the

v

Sperry-Rand is another or¬
to

flict the

the

'U

Jji

❖

continued

section

in

deeply entrenched

electronics
Its

little.

of

year

to most

bump into reality, was a bit

has

that

range

21-?8

so

done

of 21-29

the

an important role in the
rapid development of the
economy of Puerto Rico. Electric power
in the Commonwealth is the responsibil¬

playing

continued

Power

ity of the Puerto Rico Water Resources

in
I'*

v

'

if

'

Puerto Rico

Authority which generates, distributes,
and sells the electricity produced in the
Island.

To

supply the ever increasing demand for electric power,
Authority has added 140,000 KW of generating capacity,
both hydro and steam, since 1955. Long range plans call for
continued additional investment to serve the growing de¬
the

to provide continually a better quality of service
required by the rising industrial, residential and com¬

mand and
as

mercial needs.
Funds for

capital expansion

are

obtained by the Authority

large part through the sale of electric revenue bonds. A
recent issue of $20 million was sold in New Vork in April.

in

The
of

Authority has a long history of sound management and
defaults in meeting its obligations.

110

Commonwealth of Puerto

posted after

peak reached this Remington Rand.




is

al¬

identically with the 1955

range

THE AVAILABILITY of electric power

Electric

far this

compares

prominent on the lists of 1959 formation of the
company by
lows, in the process backing
merger of Sperry Corp. and
away some two dozen points
from

120

PROVIDENCE, R. I. — North
American Planning
Corporation

For 'generations the steel
all
AT
JL
o
1
manager of investments for penyear
and lately has
been industry was
the premier
INewborg Branch
s|on funds and institutions. Mr.
But in the
around five points under its boom-bust one.
GARDEN CITY, N. Y. — New-* Bunnell was formerly an invest1957 peak.
Unlike some of expansion since World War II borg & Co. has opened a branch ment advisor to Mr and Mrs. Ed_
that

ing signs apart from the short

five

past

The outing is featured each year years..

Since the

Puerto Rico Water Resources

Rico

r. -f 1 j.

Authority

to * the

12

The Commercial and Financial Chronicle

(2426)

sixfold

Growing Nationwide Appeal of
Puerto Rican Tax-Exempt Bonds
•j

Sober appeal of Puerto Rico's tax-exempt bonds and bright

,

story of progress from an agricultural to diversified economy

|

|
j

f

municipal bonds include:
favorable investment
climate, growth rapidity, exemption from all taxes—not only
Federal but also state taxes, low debt level and multiplying

tax resources, tax revenue 1.82 times maximum debt service
for any future year's outstanding issues, and Commonwealth's

J

JUAN,

years

as a

source

It

the

and today

tions

number

of

since

World

days

of income

also included

away

from

War

II.

Once

continental

the

United States by boat, Puerto Rico

is

new

will

explain,

economic

Rico

since

for

ex-

in

growth

1940

has

been.:

industrial plants opened in Puerto

Rico in the first half of the fiscal

Several

and there

ress

other

illustrated

•

wa&

alsa

little value without Puerto Rico's

prog-

efforts

own

toward

greater

eco-

included'' nofriicdevelopment,

summary of revenues^ debt s'er v- ^- Puerto Rico came under United
ice coverage and other statistics States sovereignty by the Treaty

for
.

He

bonds.

ampler that
Puerto

now

a

;

Thursday, May 28, 1959

.

Net income of the
only, live and one-half yery rapid.
hours by air from New York and economy has increased from a
less1 than four from Miami. While level of $225 million in 1940 t<^
year; a story relating to a contract Puerto Rico owes much to its fi- $1,079 million in 1958.^Output of.,
signed
by the Watert Resources nancial, commercial and political the economy, measured in terms
on

stories showed Puerto Rico

relationship to the mainland.
SAN

report

a

plant.

and

ties,

recent

Authority and the Atomic Energy relationships with the continental
Commission for a study by the.United States, these relationships
Authority for a nuclear power, would have been of relatively

documented. Topics covered in discussion of Commonwealth,^
Puerto Rico Water Resources, Aqueduct and Sewer Authori¬

-

in

ranks third

for Puerto Rico.

.

.

the

quarter

Aqueduct

and
Water

the

and

relating to the of Paris on Dec. 10, 1898. The
Sewer Authority Congress of the United States proResources

Au-

vided for

a

1900.

civil rule of the island

The

of gross

changes,

product adjusted for price
has shown an - average

increase

pounded

of

about

5.2%

com¬

He will also
point out that Puerto Rican oblij
gations are exempt not only from
Federal
income \taxes
but
also
annually.

from state income taxation.
As

mentioned

wealth

the ;

Common-;

Government's program

industrialization

has

to shift from

economy

oi

the'

aided

prinff

one

fSISS
of bo<ids of the ^Superseded to enlarge extent jn cipally agricultural to one much,1;
better balanced between
vidual investors today are giving
The headlines and related news- Commonwealth or one of its sub- <• _9H by t»e Organic Act• °*P^to
industry
arid
agriculture;
more
attention than ever before paper
Concurrently"
stories included such divisions is marketed, ,ithe Bank:.
.
J*;
with the expansion in net agricul¬
to Puerto Rican bonds. This is true phrases
as:
"Puerto Rico Issue issues a special illustrated report Amencan^ citizenship and umeof the bonds of the Commonwealth Highlights Dull Market For Tax- as it did in January and,April of stmted
suffrage foi local pui- tural income from $70 million if1
itself as
well
as
those
of
the Exempts"; "Star performance yes- this year.^Foriexample, when the
When the Pueito Rican 1939-40 to $155 million in 1957-58,
U.

S.

PUERTO

A.—Institutional

$20,000,000

RICO,
indi-

and

Water

Rico

Puerto

When

Resources bonds.

issue

an

.

n

wealth of Puerto Rico of-

reder;

manufacturing

0,000,000 public improvends, the illustrated "pro-

the pe
and al-

from

tion, that constitution was drafted
by a freely elected constitutional

of income.

convention, overwhelmingly approved in a special referendum,
and appioved by Congiess and the
President. It became effective
upon proclamation of the Gover-

been

increasingly diversified dur¬
ing the last decade and a half. In

on July 25, 1952.
Constitution, drafted and
adopted by the people of Puerto/
Rico, and ratified by Congress,

1958, less than 10% of manufac¬
turing income resulted from this

the' municipalities, "such 'as~ Sa~n Authority Revenue Bonds resulted spectus" included valuable statisJuan, capital of Puerto Rico, Ponce in a sellout"; "Puerto Rico Bonds tical information for investors and
and Mayaguez.
'
Taken"; "Some excellent selling at the same time p 1 c t o r 1 a 11 y
V
reported"' "Life insurance compa- brought the Puerto Rican story up
Broader U. S. A. Market
nics were buyers yesterday in the to date. A few paragraphs from
The market
is
becoming far broadly distributed new revenue this special report may be of inbroader than before. Some years bonds of the Puerto Rico Water terest:
ago, these bonds found their mar-

Resources Authority."

ket chiefly in a very limited buy- :

all

individuals
centers

the

across

in

country

various

and

.

One

ures regularly
ground picture

and

extraordinary

social

eco-

Pueito Rico has made in the

ment

that

the

Development

Puerto

ously

is

Rico

as

Govern-

Ban k.

takes

its

f

"Quarterly

o r

by

fiscal agent for the Com-

the

story

of

Puerto

the

United

States.

This

Rican

officials

••—'

sum¬

on

Ricc£*a

out

to

omy

in

forces

the

have

balanced system.

day the value
Output exceeds
culture.'"

sum-

v

with

is based

on

the

a

com¬

the part

on

vesting
in the people of Puerto

lations

of

the

To¬

between

United

subject

to

Puerto

States

Rico

have

consultation

termination

on

and

de¬

the basis of mutual

agreement and consent. The

%:/•;'

and

become

com¬

establishing this association
the position of Puerto

pact

maintains

Praises Favorable Climate

Rico within the framework of the

Marin
-frk

u<s

™

kets. '-Tlie

Constitution

Puerto Bico's ■ greatly

that

tourism

,■

.

.

has

and
also has been the marked

the

of

:the

laws

of

advance' c.onSress> t0 the extent applicable,

SSSr

increased

V

"

•-

for

Investors

residents

;

•;

Puerto

Rico.

with

yoice but

:Resi-

vote

no

no vote.

On

the-other, hand, rwith certain

ex-

jqeptiensf,'
I apply

;

of

dents of Puerto Rico have

Itives
m

no

.Federal income taxes

-s to r ; income ^ derived^ from

?jPuerto*Rican

sources. "

* *

'

*

j Officials of the Government De¬
velopment Bank for Puerto

governments
the

Rico

1940

has

ably

remained

low

cial
;

•

18.2

47%!

7.1

1,000 people. To a considerable
extent, these
swift, amazing advances in human welfare re¬
per

flect

the

successful

efforts

of

Aqueduct and Sewer Authority
water

and

modern

sanitation

Commonwealth.

Every

town

Puerto

Rico's

supply pdre
throughout the
to

a

ing

water

at

low

since

gross

of the

more

reserve

cost.

The

average

residential customers for both

water

charge
and

to

sewer

Sewer

Aqueduct and

than

1945, rising from $2 millions

lions.

Moreover,

the

coverage

have exceeded

Authority

are

quadrupled

over.

$8.5 mil¬

by which

more

tax-exempt

than

doubled.

bonded

indebtedness

and

are




Puerto

Rico

"well

financial

in

as

assessed

and per capita net debt .approxi¬
mately $38. The only other tax-i
Puerto Rico is that of the munici¬

palities, .which

totals

After deducting

wealth, is about 6.76%

valuations

Development

Rico, is

district

as

as

of

much

he is in

old

San

Juan—a

city founded in 1521, still
of
Old World charm,
respects, as modern
ias tomorrow.
.
; •

ecutive

Director

Water

by

Now

Director

;

Authority

V.

of

industrial
Rico

the

forward,
Resources

the

I will include
tutional

well

one

day,
and

a

meeting with insti¬

investors
a

in

New

luncheon with

investment

York

commer¬

bankers

and

insurance executives in Chicago or

Minneapolis next day, and a meet¬
ing
the
following
week
with
groups of investors, say, in San
Francisco.

•

development

Puerto

goes

Water
has
been

Rico

Authority
additional

as

it

pro¬

electric

requirements for industry,

two

':"t. Occasionally his busy schedule

Aque¬

vigorously

continuously expanding
power

Urrutia,

Diversified Economy

a

Puerto

vides

.

the

Sewer Authority.

the

As

Puerto

the

of

Resources

Mr.', Rafael

duct and

commerce

some

; /

similar

and"

of

%

debt, $68,815,409.

story of progress is
by Mr. S. L. Descartes, Ex¬

;
A
told

possessed

in

or

on Jan..!, 1959 totaled $85,332,000';
.sinking
funds,
$16,516,591;
net

yet,

;

of assessed

$48 per capita. Gross
bonded debt of the Commonwealth

Puerto

Pico, President

and homes.

decades

transformed

Puerto

itself

cultural

In less than

has

Rico

an.agri¬

from

dominated by
I diversif ied
economy.
In 1956 for the first
time in history industrial income
surpassed farm income,, This
transformation has
been closely
economy,

sugar,

to

related

to

a

the

modern

utilization

of

elec¬

tric power resources.
Total

power

in

Puerto

Rico

ending
Obligations Free From Taxes

-

PUERTO RICO AQUEDUCT AND
SEWER AUTHORITY
Juan,

to

valuation is approximately 5.41%,

of inves-

groups

Government

cial

Aqueduct and

secured. At current prices,
they represent at¬
tractive investments which provide an
adequate
return to individuals and
institutions.

Commonwealth
of Puerto Rico
San

net

re--

many

;.V*\.I'

•;

.

to

principal, interest, and

requirements has

the
•

month!

a

revenues

Authority have

revenues

point to meet

at home in Wall Street

The Bonds of the Puerto Rico

and

city in Puerto Rico today
constant, abundant supply of safe drink¬

has

Annual
Sewer

as

Bank for Puerto

longer life

to

centers

the

of

*

over

a

Puerto

of

progress

«iRico. v'Div Rafael

/

years—or

remark¬

a

taxable

V The ratio of net Commonwealth

jtors-irirNew York and other finan¬

-

has dropped from

at

its

have ; multiplied

sources

times

level,

Executive

the.

on

frequently with

rate

of
is

budget

ice. While Puerto Rico debt since

eral

The death

thq-

today, only -3.8%

Commonwealth

Rico

their

:vdRico have made it

service is around $2.50

in

needed to meet current debt serv¬

effqrt to " keep investors
up-to date statistically and in gen¬

in

Just since 1940, life
expectancy in Puerto Rico
has risen from 46 to 68

interested

that in pleasant contrast to
heavy debt burdens of many

fact

the

bonded

Frequent Investor Meetings

i.i

means 47%

* • f.)

are

$27,571,000..
available sinking
national elections/and are rep-' funds,: net debt oL the municipali¬
**
ties is $21,350,404. Thus the total
Presented In Congress only by a
direct and overlapping net bonded
^ Resident
Commissioner
who
is
indebtedness f of i. the • Common¬
seated in the House of Representa•

■"

Manufacturing income?
now generally derived from the'
production of new types of manu-j

is

supported bonded indebtedness ini

;tween residents of the states and

1

v—

industry.

$254 million.

States

Rico

Rico with respect to internal gov¬
ernment.
It also implies that re¬

of industrial
that of agri¬

v■

manufacture of sugar

products accounted for 35% oi
manufacturing income. By 1957-

States. The associa¬ faetured

Puerto

United

com¬

one

the

manufacturing has

of power

of

pact which represents

of a few
to transform the econ-%
of
Puerto
Rico
from ;

more

a

1930-40

source

commodities principally?
shipment to the United States.
Sush shipments amounted to only?
$20 million in 1947-48. By 1957-58
they had reached a total of about

tion

space

purely agricultural to

that of the

similar

Puerto Rican

million,

as a

of Congress an irrevocable

Its

the

expanded hotel facilities, pointing

a few weeks
«go on the occasion of the sale of

-•

statistical

1,000^

address by Governor

jninff

article

w e r e

published
typical

recent

and

of Miami.

self-government

""what ^Puerto attributed S smX
to ^Pited States familyu Provides
{mnmL
small measure to £or common citizenship, monetary
to ; impro« its to- Commonwealth PlangVfe-Oh the .ahd judieial systems and free mSrthe long-range
climate
an illustrated
Government .to

t>1pp

greatly encouraged

•

an

Munoz

J*?"
dustnal

has

year,

of Puerto

of

mary

Luis"

a

Investors,"

significant facts?

economy

brought results.
Puerto

of

of this

well-known

to

A

included

Rico

the

sixth

Bank.

mary

Progress clearly and regularly to
the attention of investors throughout

its

the

is

Report

issue

mon wealth
and
its subdivisions,
The Bank has made it a point to

bring

in

now

role? seri-

Several

years

presentation

other

York

is

bined

over-

all economy.

New

of Puerto Rico

provides

approximately 3,400
square miles; its population,
2,300,000.

Common-

improving

1,600 miles south-

miles southeast
area

back-

a

lastq110 interesting method

tew years.

The

the

of

wealth's steadily

that

progress

against

of

east

Government

has Presented the facts and fig-

..

.

the

is

the

years,

Development Bank of Puerto Rico

This is directly traceable to two
^

some

surpassing agriculture

This

on thenbrththe Caribbean

border of

Sea,

few

nor

of

Puerto Rico lies

j-

east

Past

financial

causes,

nomic

Commonwealth

The

¥

,

*

In telling the story of Puerto
Rican bonds to investors over the

regular buyers.

are

,,

Excellent Investor Inlormation

ing area, New York and New
England primarily. Now institutions

'

increased

income

$27 million to $231

January,

to

production

the

1959,

12

in

months

amounted

million
kilowatt-hours
The story, he and other officials compared with 182 million in 1941
have to tell about Puerto Rico, is —over
a
ninefold
growth. The
a heartening one, and one that
average number of customers per
ap¬
peals to investors* in tax-exempt year had risen about three and
1,656

Volume

189

Number

5850

.

.

.

The Commercial and Financial Chronicle

times during the same lets, pamphlets and reports to in¬
investors
period, from, 100,492 to 365,255. • stitutional
throughout
Rapid growth of industrial power the United States; by direct mail,
consumption, and the sharp rise in ' and through personal meetings
one-half

with

standard of living as reflected by

investors

in

key

the

Miami Extruders, Inc.
Common Stock Offered
"Aetna

Securities

Corp., Roman
constant installation of more
& Johnson; Stanley Heller & Co.
electric
appliances
explain
the year to year. The Government
and Michael G. Kletz & Co., Inc.,
sharp increase in the use of elec¬
Development
Bank;: for
Puerto on May 25 publicly offered 175,000
tric power. "T
Rico, as fiscal agent for the Com¬ shares of common stock (par 10
A
substantial
amount
of f,the
monwealth and its subdivisions, cents) of Miami Extruders, Inc.
at $3 per share. Proceeds will be
capital improvement program has
maintains an office at 37
Wall
been financed directly from rev-^
used for expansion purposes re¬
enues of
the Authority j * In the Street, which serves as a clearing payment of short-term bank loans,
and .to augment working capital.
period from May 1,-1947 to Dec. house for information directed to
31, 1958, a total of $201,988,000 was investors in Puerto Riean-secu¬
: The company was incorporated
invested in capital improvements;
rities.
•
.vv ;y.1in Ohio on March 14, 1947, under
of this amount $157,996,000 had
been provided from bank borrow¬
■

.

ings

the

and

,

issues

2fc%

and

had

proceeds

$43,994,000

Cousins

The present name of the
adopted on April 18,
1955. The company since Decem¬
ber, 1955 to date has been engaged
exclusively in the manufacture of

Two With Dean Witter

aluminum

cipal
N.

extrusions.

officesrare

W.

37th

The

located

prin¬

at

7575

SAN

FRANCISCO, Cal.—Roger

H. Lasley and Raymond A. Laur¬
ence

are

connected

now

Co., 45 Montgomery
Street, members of the New York
Pacific

Coast

Stock

With Keenan &

Clarey
With Lakewood Sees.

(Special to1 Th>: Financial Chronicle)

MINNEAPOLIS,> Minn. —Stanwood
to

the

N.

Osgood has been added

staff

of

Keenan

&

Inc., Pillsbury Building.

Clarey,

Ohio —Harry

LAKEWOOD,

of Lakewood Securities Corpora¬
tion, 14714 Detroit Avenue.

net

tp over $279,589,000, operating and
appropriated

reserves were $42,165,000,
net
contributed
capital
and unappropriated earnings were

liess

long-term
$163,738,000

was

indebtedand out¬

standing notes pending long-term
financing amounted to $10,700,000.

[Revenues Exceed Debt Service

ji Total revenues for the 12 months
ended Dec. 31, 1958 were $35,976,000.
Current
expenses
for the

period

same

leaving

$21,535,000,

were

•

$14,441,000

to

meet

debt

service^requirements. The maxi¬
mum debt service for any
[future
jrear Xori/; putsjandihg^[iss<i©5^ was)

"

-<

O

J>7;899)19^
of 1.82 times/-':>ii'";A.
■%,, • My'.;v v.•••' 'r
n As for the-Aqueduct and Sewer

Authority,

recently

as

as

1945 the

municipalities of Puerto Rico were
by 76 separate municipal
water systems. Very few of these
actually gave dependable service
around the clock,and many lacked
Adequate treatment of water for
drinking purposes. A good deal of
duplication existed in the services

M

&

served

provided by administration
accounting : staffs
required

•

■

and
for

this

multiplicity of agencies,, and
scarcity
of
technical
personnel
hampered them in carrying out
balanced extensions and improve¬
ments.
Meanwhile the
rapid
growth of industry continued tp
place ever-growing demands upon
the water systems. K
" j ■
,

% "Today

every

Puerto Rico has

ply

of

Which

in

continuous sup¬

a

water, for
rate
is paid

drinking

safe

uniform

a

,

,

.municipality

everywhere. All but 12 communi¬
ties have sanitary sewers, and pay
a standard service charge amount¬

ing to one-third of the water bill.
Accounting and billing for water
and sewers throughout the entire
Commonwealth are handled from
a

single central office in San Juan;

using
card

ply

modern punchSources of sup¬

the most
techniques.

capable

for all

of providing

indus¬

foreseeable population and

growth are already in hand,
and plans for the orderly devel¬
opment of these resources have

trial

been made.

Outstanding
the Aqueduct

ity

earned

long-term debt of
and Sewer Author¬

$28,237,000

totals

now

annual

maximum,

2.33

debt

times. Total

with

service

Seven to

assets of

Sewer Author¬
ity on Dec. 31, 1958 amounted to
$126,261,369; utility plant in serv¬
ice, $93,869,669; construction work
in progress, $20,723,979; total rev¬
enues,
$2,215,162; net revenues
after current expenses, $1,136,527;

one

the Aqueduct and

number of customers,

i

, ,

more

228,709.
This

Public Relations Program

;

This

bright

story

Rico's progresses

larly

to

feature

cial

and

a

stories

business

modest program

through

a

through

.it has been leaving within the production area
dollar in profits withdrawn ..

quotation is

one

of the highlights of the comprehensive study

Company operations in Latin America which was

fSeries
ness

of the Republic of Ecuador, and
Stacy May, well-known economist, for the National Planning Associa¬

made

news

tion,!

in the finan¬
press;

..

than $7 for every

of the United Fruit

Puerto

presented regu¬

investors

and

of

the contribution of the United Fruit Company to the
of the six countries ' is enormously advanta¬

economies

geous

by Sr. Galo Plaza, ex-President

on

United States Busi¬

Performance

NATIONAL PLANNING

TION, 1606 NEW

Abroad
ASSOCIA¬

HAMPSHIRE

AVE., N.W., WASHINGTON

independent research group.

an

9, D.C.

through

United Fruit Company

of advertising;

motion picture present¬

General Offices:

80 Federal Street, Boston

10, Mass.

ing the story of Puerto Rico that
investors would bet if they visited
the

Island; through special book¬




♦COLOMBIA

-

*COSTA

RICA

-

CUBA

.

DOMINICAN

REPUBLIC

-

♦ECUADOR

-

J.

Greer has been added to the staff

revenues of the Authority.
On
Dec. 31,1958, total assets amounted

$50,136,000,

Ex¬

changes.

bond

from

with

Dean Witter &

and

Ave., Miami, Fla.

J

(Special to Ths Financial Chroniclb)

company was

about

or

mainly

come

of

of Shekter and

name

Co., Inc.

financial

centers from month to month and

the

23

(2427)

♦GUATEMALA . ♦HONDURAS - NICARAGUA -

♦PANAMA




1959

27,

May

Scale li
v

d3Ju-4-e%M3d19>i6uc0s4he%. Id3s>u-u81e9e%2)I(3Ss60coun%ed)d31u$ d3196%u0-e Vd'u\s19%

c

u

LOohraioin, Clem ns, R(Fiicrsot Rico PCuotnnam., Nev. Tex.
Mount Puerto Puerto

Scale B
I

Reno, Waco,

!

D■Scale

Scale D
»

$104,76 0

UAGM1t5ohn,ar9efy3lySPrttneaohsiidefsdn: V*TWY:ETBPICINOHTNFAYRR'EMO-DVBCSHDLF2GATTUNIDEEHPLYMOCGFHFBPTILEARDTGMSSNHOEIRATS."-AUd2m1inot9saaiturmca3eseosnfidd7tn.g, $19,06 25 81,93640- 7 19,6205- 7 1,965-20

cPHAdmhleagLyBw.ontribus HA1o9muc3ndi7f*g Staes,

CUStntahpohianyemeudfslontribuacs. BTiarcnntkshvdTFSNYturoheanrdswk.f liocnate:d
CAbtnrpiuwoasybcleswgfcrhd, bITUnSpcatrohaximseyenf

AdAmninptusahfrosauresonidl PRALIftnugvoheioeacstgrmrntoorfly Ageawonchries,
UUfFtnrtdheocophoiuwnenmeistaflsl, ftSnthdocaohoepvurinewinsegtfls,
HA1fo9oaausptcmoo3lsheisdfint7ngg,,y
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Sdfroaaopmtienn , Ttahoees, SIAOTUMHMFERY, CONTRIBUS WTPOHIVTIEHNS TUNTHIATEEED,HBOEALSNNY COITSNTRAHBUMES POIAYTMFESNT
United
the

P,CseBNJd3ayuon.e,CGol%uamb.s,ETNJ3dodwiungos.ehn%ip,LFFJ3£auodlerrt.,JIdaocyukusgnoe.n%ty,LCL3ha-akrlee.sVNLdea'u-gAvase%.s, rices

PHuoubsliicng

"IN

Housing

AN UAL ANCE UPON STA ES THE 'Public
TO

the

by

Inivestm ,

UStnaiteeds

Legal

The

IS UES

NEW

isoeaucefhLPocbalicl togweihthr

Bonds the which,

The

and

Eixnempt,

Inter st

MYaietaulrdni dses,

Scale B
'

LPoucbalic 1960- 1960- 1960-3 1960- 1960-8 196-20

Ibyus ed

,;Scale

Bonds

Bttohhnadest
except

.

c

v

$1",8 5,0 1,210, 0 965,0 0 1, 0, 0 1,240, 0 3,485,0 1,50, 0

of

Quotaion

Scale

due due due due due due

3M% 334% 3M% 3M%

C

Scale

3?£% 3?i%

Scale

SBcale CMlainston., DOahytioon, DN.uC.rham, RN.aC.leigh, SCc«ale C1hic1ag.o, YN.oY.rk,
■
■
■
■"

■

New

1,54 ,0 3,795,0 1,70, 0 3,825,0 $24,180 36,250

$

D

*

i

CP&resopric.h S&Cteaorn.s CHoigrpnastionn
Bear,

&CWCeo.Incorpated

W.
R.

Lee

3.80

3.85

3.85 3.85

3.85*

100 100 100 100 100 100

/

100

@

10 '

@

3.80 3.80 3.80 3.80

@

@

@

@

@

981/2 981/2 981/2 981/2 9'•81/2 981/2
@

@

@

@

@

(a)

*

—

3.70 3.70

100 100 100 100

@

@

3.80 3.80 3.80 3.80 3.80

Co. W&Horen>blokwser
&aHRirpimleanyIncorpated

@

dfiaprctsaelr.t

*3.45

3.50

3.55

Hirsch

.

(and

1977 1978 1979 1980

1981

First

1982 1983 1984 1985 1986

.

»3.0

The

•,

3.05 3.10 3.15 3.20 3.25

1cpoa0rni4lfde

*■, dfber.caoatyHhemebaleitrsn
"';j

t■»
'

'

2.43 2.60

*-•

j2.70

2.80 2.90

12.95

[3.00 >5
3.0

3.10
V-

:3.i5

"

3.20 3.25

".■>"

,

:

2.43. w2.60

2.70
•

1963

1963 *1964

2.80

2.90

• :v

,

2.95 3.00 3.05 3.10 3.15 3.20 3.125

-■

1969 1970 1971 1972 1973

.

1v ,
•

■*

1968

1

r

':•*1
•

1965 1966 1967

Lynch,

Merril

-

2.45 2.60 2.70 2.80 2.90 2.95

CFH&ECIGBConaoiublmemgtocppr..anens,yyIncorpated IInccopatdd 1?"1:TI-v'.• IRProv.idenc,
iPOnirothaactfsepmnacphrerecuddflus.,g,bleibsUTignsatoraduowrseeacphcnrnwyuvdyjvtdhf,t.l,
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isr-

-*—

*v

•

•
•




Corpatin W&eogl.d Hutzr Company&Lidl.wBNtk
'"JCo. Nerwark
Inc'ovrpated
First

The

'•

YMeorwk

r
'

c

MCioty.,
Kansas

of

&LRhooaedebs,
M.

Carl

J.

itawsunfohbsdjeerc,Otoumryntlg TBCFI&nlihyrocsteh.t, S&CEeqcuuiotraitb.les

Bboeaonfirdneersgd,hinmseaobdtey,
Brothers
DUinlioon,

The

of ering

Eastman

V* -

OBNraaeotigonofknl of

&ddCEl reog.e Incorp ated

Lehman

.

-t

Ladenburg,

SoNNYCBaoateinrnwkafkyl &PFemienritchr, FNBH&Floeiomblnglga.-eWsnr,,
Incorpated

intaecrruesd)

•

3.40 3.40 3.45 3.45 3.50 3.50 3.55 3.60 3.60 3.65 3.65

1976

YWNeostrwkfn VWCSPNYhaelrohlaatiettsn.®.fvlis,,

TC&halmon.

I"ncorpated

:

3.60 3.60 3.65 3.70 3.70 3.75 3.75

3.40 3.45 3.45 3.50 3.55 3.60 3.65 3.65 3.70 3.70

"

H.

W.

Co.
&

/

MO,,

&oM rton Incorpated

Kean,

Priced

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

.

Weltde,
&
Whi

to

@

MO

CCE&IT&WPnoalyomcl...kr,

Co.

@

Co.

F&ne

Phelps,

PNBhailatdioenphkial

Incorpated

NearpeCCTMCtyoahhnmehmpsiackanly TCormusatny MSNBeeacrluti-oSnym-Fikthsl BW&BChaicoporln.e, CFTBdrauorntsio.dkt Tarsuhvsilet
*CBC&Aoaomlmxep*tpeaxanrnyy "w.CPW&CJaaeucobkirnsto.inr,, &CAGBC&ecook...r CC&FWC&oraouirg.t.se CM&COTcoDmhonpiea.aoldny
The

Incorpated

Incorpated

C xel &
&
Dreo. Afalynnd Mosel y
C.
A.

S.
F.

Stevnso B&radford H&uton

Bacon,

C.
J.

E.

W.

TBarnukesrst Northern

The

&
Dick

NTBiahtnoirdkl
•

Co. WaBakert
& &s ,
Bache

8:

The Commercial and

(2430)

26

ing the Commonwealth's banking
so
as to
exempt the locally
chartered
banks from local re-

Puerto Rico's Bank Resources

code

requirements

serve

Reach New Record

High

growth in Puerto Rican banking reflects the
investment
opportunities, considerably expanded

Record

high

Island's

check

inter-Federal

and

Bank

Reserve

wealth

Puerto Rico's flourishing bank¬

system

achieved'

record

new

a

$600 million-plus in
tests

the

to

Spring

this

which

high

of

at¬
vitality of

Rican banking system.

sustained

der "Operation Bootstrap."
Under
the
leadership of

intra

The close tie-in of Puerto Rico's

and banking structure
mainland, along with the
integrated legal and judicial sys¬
tem of the two areas has greatly
monetary

with the

eco¬

United

States

on

the

same

tax-

free basis as the obligations

of the
State
and local authorities,- and
Step off the plane at San Juan
and you will note investment op¬ private Commonwealth borrowers
portunities of all kinds in the may enter the U. S. market for
form of construction—office build¬ long-term funds on the same basis
mainland borrowers.

as

ings, apartments, roads, schools,
This ready access to the U. S.
supermarkets, and plush tourist
capital markets is making it pos¬
spots, not to mention the 100 or
EDA-sponsored

plants now
opening in the island each year.
more

sible for Puerto Rico to maintain

extremely high rate of capital
formation,
around
19%
of the
gross national product.
lovely capital city and you will
In addition to the sale of securi¬
see trucks loaded with refrigera¬
in
the
mainland
tors and appliances heading for ties
market,
the small towns along the coast Puerto Rico has alspj had access to
or in the interior of this 100-mileFederal long-term lending agen¬
long, 35-mile-wide subtropical cies operating in Puerto Rico.

Or drive

the outskirts

to

of

this

island.
Record

Amidst

Banking Business

this

bustling

an

scene,

Thus, the Federal credit system
has played an active
p$rt in ex¬
tending mortgage and Other me¬
and

dium-

the

between

funds

of

transfer

Commonwealth and the mainland,

representings a
lucrative
earnings, not only

while

the
facilitated
the
Commonwealth's
Development Adminis¬
access to the United States capital
tration this unique industrializa¬
market.
tion program has to date brought
Hence, Puerto Rican Govern¬
Puerto Rico over 550 new factories
ment obligations are traded in the
and
40,000 factory jobs and is
on every

of bank

source

than

more

$700 million worth of

goods from
from

comes

the

abroad

banks

the

(90%

U.

S.

also do

of this

mainland),

considerable

a

import business too.
From the

States

come

automo¬

functioned

has

since

in

Rico

Puerto

Another key factor in

1953.

attracting private mainland funds
into the financing of private con¬
struction
has
been
the
Federal

Housing Administration, which
has made mortgage insurance fa¬
cilities available in Puerto Rico.

Also, much

progress has been
years in stream¬
island's check-clearing
mechanism, which has diminished

biles, steel, beans, rice, lard, meat,

made

and

barred

finished product by the new Boot¬

in

strap industry. From Canada, lum¬

the

ber
and
codfish.
From
Japan,
toys. From Germany, Belgium and
France, small cars.

ances.

Banks also
of loans for

in the

are

housing projects

un¬

der the FHA and the other hous¬
now

struction

suburbs

the

the

collection

of

under
of

con¬

the

clearing
system
that
draws heavily on the experience
and techniques developed on the

mainland.

While

elimination

the

charges

change
of

of

involves

ex-

esti-

an

$500,000 annually, this
is likely to be offset at
by the "repatriation"

some

reduction

least in part
of

deposits

previously

with

kept

mainland banks in .order to avoid
these charges.
Banks
r»anKs

Rico s

Hitrh

Record

Rico

1958,
has

for

been

special and in
ited

part,

Reserve

step

example,
a

part,

Puerto

though

a

respects lim¬

some

of the Second Federal

District.

This

is

another

integrating

and making
Commonwealth's

Stronger the
monetary mechanism with that of
the Continental U. S.
The recent arrangement follows
upon

series

a

recent years

of

steps taken in
to adapt the island's

monetary and banking system to
the rapidly changing needs of the
economy.

Significant changes include the
basic

revisions

banking

code,

in

and

Rico's

the

Federal Deposit

island,

Puerto

extension of
Insurance to the

the

improvement of coin
currency facilities,
and the

establishment of

a

central




clear¬

set

demand

intra-island

an

check

the

Bank,
Agent.
An

Settling
tie-in

with

System

the

was

Federal

effected

Reserve

when

the

Government
was

lish

Development Bank
granted permission to estab¬
a

count

non-member

with

the

clearing

Federal

ac¬

Reserve

ive;cora iwgn

Fundamental revisions have also
been made since 1950 in the Com¬

monwealth's

banking statute, re¬
sulting in improved bank super¬
vision

and

examination, stronger

bank-capital structures, and bet¬
ter
safeguards
against
unsound
and
speculative
banking
prac¬
tices.

In

1950,

chartered banks
authorized

,

too,
were

to affiliate

the

locally
specifically

System,

industrializati^^er|;p.

Another type of financial

*

-

.

.

-Morgan

insti-

physical
facilities
greatly ( during
fiscal

expanded
1958

the-savings

was

association.

ciations—one

Two

in

new

Stanley

associated-

whose

(

Co.

&

investment

and

firms

54
are

offering for public sale

on May 27
$75,000,000 ConsolCompany of New
first and refunding

new

issue of

idated

Edison

York,

Inc.

a

and
asso-

Mayaguez,

an-.m0rtgage bonds, 5Vs% series
other in San Juan—started opera-' due June 1, 1989. The bonds
tions this year, joining the one priced at 101.15% and accrued
institution which has bepn in op-, terest to yield 5.05% to

>

P,
are

in4't

maturity,
purchased the issue at
organizations
had a total of -J% -competitive sale Mav 26 with a
established offices.-At the end of bid of 100.3291 %J* for the
5Vs%
the fiscal year it was. reported '.-coup'on.-i*'I.•-rz
since

eration

These

1950.

three

The group

vrThe met fprpceedsrtrom the sale

.

Arecibo, Ponce and

m

will be arwlied-bv the utility

com-

^^::paxry^to the u'etirbment'/bf short-t;
?. inyestment in > Share^ccbuptfepf;;; 16rifr!yJiai^£)oans*
estimated > at
^ese'; associations;5 increasedby. $27,000,000,-iand toward the cost
22%

during this year, amounting of the company's construction pro-i
million as of June 30. The gram/.%;
, .V

to $39.7

bus^o'biles which dunng the year.;.;

mobHe banking

1^

-The company is engaged in af
construction' program which, it is

"' •••*•'

•

1

p„M4n

nTr.

Si!?

de

Credito

Banco

Rnnnn
Banco

San

Bank,

Juan,
Banco

Hp
de

endow Puerto Rico

Y

Ahorro
Rnnrn

Pnnnp

Ponce, Banco
Boig

attained this year with theses tab-

1954
0f

the

of

facilities, $18,000,000 for steam}

Investment

puerto Rico.

the

under

.

Companies
The

able

Act three New York City

organi-

new

which

zation is authorized to invest in
firms .; and

power

supply ( electricity

plants
to

the

BMT 'and IRT divisions of the
New York City transit system,

ajj ciasses of securities issued by
ivate

1
■

quisition, at an estimated cost -of
approximately $126,000,000 payr-:
over a three year period,1 of,

investment

first

organized

COmpany

government

*

The company estimates the con«i

Lpnp:pc. within
wrfi :ic
with
ine company eburnaies uie cunv^
aSencies within, as well as witn- struction program will require the
»

t

Puerto

Commercia^ pan'

Y *t ±

de^ Economias

gas

with institutions providing a com- and $30,000,000 for common plant.
Plete line of financial services was Such expenditures include the ac-

cityJ^ank ana tne ^uase Mannat- lisfiment

Pnnppnn
Ponceno

1963 of approximately $1,000,000,r,r

,

in the e^ort

Un5nti?lW

Rico,

estimated, will involve expend!-.
tures for the years 1959 through

.:. ■ :r;

" Investment Company Formed
000j of ,which $914.000,000 is foe
Another important advancement electric facilities, $38,000,000 for*
canning

i

tlfp fircttw*■ tSS^
tne iirst lImeJ-otai
oi

Rico.

will

The

new

only ;

issue

which

will

in_.

1o

*

T

.

the

>

,

tment

0f

an

additional $550 000 000

^°

^

■19154

ment Bank for Puerto Rico which

saie

common

sold

be

com-

"yblic

Prestamos, Banco de San German.
Also — The Government Develop-

com-

T

,

.

f;„
At Dec. 31, 1958, outstanding,
capitalization of Consolidated Edir

consisted

gon

of

$894,623,600
$175,000,000

of
$5

provides long-term loans to new
industry is not competitive with

RfP1?8 Act of Puerto Rico otters

iong_term

this type of enterprise exceptional

commercial banks.

tax advantages.

cumuiatiVe preferred stock and4
common
stock and surplus of

mu-o

.

x-D-

t,

,

x.

resources

passed the $600 million

levei

the

for

figure:

first

time.

Under the Act,

investment companies are entirely,
exempt froin taxes, including in-'

,

This Spring, Puerto Ricos bank

POmp

Official

least

Up,

tavps

during

fiscal'

everv

too, were deposits which
$55.25 million higher than
last Spring's $444 million. Savings
accounts, up also, totaled $137
million for a hike of $15 million,

investment

commercial

In

(dividends, income
from rent, and interest).
These
companies are not subject to the
capital gains tax and such gains

were

1958

accounts

by

$18.6

increased

$47
previous.

million,

$376
over

be accumulated indefinitely.
addition, the stockholders do
not pay taxes on that part of the
dividends received from the company
which
constitutes
income
from exempt sources.

while

the

year

.

-r,

~T

IT

.

1

l

.

ko.

"

.

Private Commercial:

of
units

,

Total Assets
(minions)

Total Deposits
(millions)

Banco

Popular de Puerto Rico—

33

$122.3

$109.7

Banco

Credito

24

89.9

79.7

Ahorro Ponceno

y

*14

Banco

de
de

-

57.0

3

Ponce

Banco

.

11.9

San Juan

Roig

Commercial

Bank

Banco

de

Economias y

de

San

5

3.1

The

vestment

2.4

dent

of

Companies
Fund

Scudder

of

Chairman
Canadian

and

of
In-

Presi-

bf Canada

1.9

49.2

Canada" before

97.1

92.9

iysts. The occasion will be the
opening luncheon of the Convention 0f the National Federation of

.

Ltd., will speak in Montreal, Mon-

9

-

5

17.1
14.7

Scotia

16.1
.

v

6.4

Queen
1

63.8

1

2.1

____To6

$551.5

in

the United

on
a

"Capital

For

joint meeting of

States.

the

Elizabeth Hotel, Montreal.

20.5

Felix Hessberg

__

$445.6

:

Felix Hesberg

American
include two units established

15

Financial Analysts Societies at

.

Govt. Develop. Bank for Puerto Rico
Puerto Rico Bank for Cooperatives

June

Canadian and U. S. financial ana-

3

not

AhaIucIc

HildiyalO

Stilus,

Committee

4.9
v

-

Q
w«

•

2.3

The Bank

'"Does

I

Ifl

64.3

The Royal Bank of Canada

Total

f) \

-

I

a

■

StirPQ

4
,

City Bank of N. Y.

of Nova

'

-

Hardwick

10.7

•

Government:

oughs of New York-City. Gas serv>.
ic.e ^ s!!^
?niue ^rou^"s

day>

National chartered—
The First Natl.

territory includes the five bor-

1

The Chase Manhattan Bank______

Foreign

.

,

UdlldUd"U«

,

t

.

Pah All A II

51.2

.

5.9

3

Prestamos

German——

State chartered—

,

■■

...

WlllU® IU HIIIIIWO

Commonwealth chartered—
'

•'

'

The bonds will be redeemable*
at the option of the company aft'
prices ranging from 106.15% on or
prior to June 30, 1959 and 1hereafter at prices decreasing to the;
principal amount on and after
June 1
1988.
&

Banking Institutions Operating in Puerto Rico (June 30, 1958)
l>

_

The company's electric service

Manhattan and The Bronx and
sections of Queens and WestChester County^ and ^steam -service in P^t of Manhattan.
-un¬

may

ahead

million

to

million

were

debt,

-74 nnn

$
-

in which they distribute, af
90% of their income from

year

$606,266,142.

and

recently legislation has been
introduced in Puerto Rico amend¬

.

Ma ft? on Ql A til All Or Aim

themselves

with the Federal Reserve

i!*

,

IHUlgBlI Old VI16 J UlOlip

associations

banks

Banco

Bank of New York.

;

deposits,.,

nefaggregate number of active share
^Ln s ri wirp tbt accounts for all the institutions
cZentfonalbranches Tf were "**.
™ increase of; 26%

collec¬

acting
as
important

■■

If lidVII Jlf

S

tion system with the Government

Development

V

■

Rf|||flc flffpfftll Iftlf

!.•

up

«v"

■

charges to savings ac-y
1
r "

as

counts.

loan

•

.

checks

or

.^.e .^establishment p£?.pe\y-

v
,.

a

some

have

against

well

as

made

*■■

■"

■

COItSOildmfiO E 111 SO II

>•

.

Hit
nit

in,.fiscal uyao.enremarkable year despite
recession
in the
States.,.The

loyed

Tie-in With Federal Reserve

banks

fi-

new

^hus, spurred by these!;pl^an^es.-Gaguas.;-ha(i'-;bp.en authorized, r

and rapid

loans

Rico's

charges

drawn

checks

mated loss in gross bank earnings

of

Puerto

of

year

System

unique Commonwealth relation¬
ship with the Continental U. S.
Since

bal¬

Teamwork between Federal

\

Banking in Puerto Rico benefits
considerably
from
the
island's

sist

tern, but also marked Puerto Rico
as a
"foreign" area.

Reserve

large cities, for the rising middle
class.

uncollected

of

technicians, the Puerto
Rican Government, and the com¬
mercial banks in Puerto Rico, pro¬
financing
duced
a

ing developments
in

recent

volume

This

-

represents an expansion'of
during Tiscal 1958, compared'

20%

tution

lining the

materials fashioned into

raw

«

tan Bank. Two Canadian branches

are

monwealth's sugar cane, tobacco
and coffee crops.
With Puerto Ricans now buying

accounts receivable.

This in-

.

through the Federal Reserve Sys-

long-tern^ loafis to
doing
Puerto Rican .farmers: pther longa record business. While providing
a£er,m ^
^
tj
l*
term credit facilities for the in¬ oi Canada and tne ±Jank oi i\ova
financing to construction and in¬
dustrial
and
commercial
sector
dustry is an important part of
c^Pa*
.,
„
,
have been provided by the Small
inese
are
tne
their volume, the island's banks
puerto mcan
Business Administration, which banks; Banco
Popular de Puerto
make loans to finance the Com¬
Puerto Rico's 13 banks

3.5%

or

practice of levying exchange with only 5y$> during the precedcharges on checks involving the ing fiscal year. Bank (debits con-

Economic

stimulating growth
nomic front/ ;

million
earlier.

year

nancial service will be provided;!
in the holding of obligations of\ by a factoring company whicljy
the Federal Government and'was established this year. Thig;1:
Puerto Rican municipalities.
. •.'company^-a
joint venture of priy
i
vate Puerto. Rican investors and
Rank Debits Increase One-Fifth • the Puerto Rico Industrial investThe volume of bank
debits, 'ment
Company, ' a government
which is generally accepted, as a corporation, is i expected to have
fairly accurate indicator of the an annual, volume of business of

ume

previ-

The Puerto Rican banks'

island

-

a

reflects mainly expansions

crease

ous

Easy Access to Capital Markets

resources,

the Caribbean Commonwealth un¬

for

banks,

$4

some

than

year. This service enables private!,
firms to .finance their -operationsv
through loans guaranteed by their <■

service

checks.

ing

mechanism

part

' .Factoring is another financial
service Offered to businessmen iifc.
Puerto Rico for the first time thi^v

Bank
security: holdings
totaled
$119.6 million on June 30, of this
more

Thursday. May 28, 1959'

.

additional Federal Reserve level of economic activity, rose to some $9; million.y It will specialavailable to the Puerto $535.0 million this year; This vol-■ ize iq. furniture industry
accounts^

an

a

ing

became

enhances the mobility of funds between the mainland and Puerto Rico, and makes

Island's first investment company organized

SAN JUAN, Puerto Rico, U.S.A.

island

the

taken last year

was

of
check
collection.
This step, which followed the adoption of par clearance
of checks by the Common-

19% capital formation rate, and the
under the 1954
Investment Companies Act of Puerto Rico.

clearings and

District

when

York

New

of

Bank investments resumed their
secular upward trend thisi year
after a slight decline in fiscal 1957.

significant step linking Puerto year,

the District for purposes of

mainland's capital market,
and closer integration with Federal Reserve Banking system.
Despite our recession, Puerto Rico's bank debits during fiscal
1958 to date increased one-fifth compared to 5% in preceding
fiscal year.
Some of the recent years' accomplishments
include: elimination of exchange charges, new and efficient
intra-island

event

the

Rico with the Second Federal Reserve

financial services, easy access to

..

A

in

Reserve membership.

of Federal

Financial Chronicle

away On

Stock

member of the

Exchange passed

May 16th,

Viplume 1.89

Number 5850

.

.The Commercial and Financial Chronicle

.

27

(2431)

he

v^as assigned to the Trust De¬ Chattanooga, Tenn., increased its
partment, and iri 1932 was ap¬ common^ capital stock, from $2,-

pointed

About Banks

"f944

NEW BRANCHES

.

REVISED

•

;

Bankers

and

'

CAPITALIZATIONS

,

In

promoted

was

to Assistant Trust Officer and in

Trust

Officer.

'

VX NEW OPFICER8, ETC.

Secretary.

X1937JMr; Corcoran

.

CONSOLIDATIONS

r

Assistant

He

Mellon Bank in 1946
'■

of

the

joined

dent in 1948.

Cleveland D. Rea has been ap-

First National City Bank
New York has announced the

The
of

appointment of John C. Macy
deputy comptroller.
'
.

Macv joined
Macy ioineH

Mr
mr.

tional

City

served
sion

Industrial

as

"

v

*

Arthur
I

Hue

Jr

been7-

has

First

Na

JNa-

elected

1927

and

Security National Bank of Long
feIalld( . New: York, .Herman H.

tt•

j

-r»

Vice-President! of

a

3?

'

*

■£SS- partment.

"J.

Fir?t

in

i

Department.

the

nointed

£„din1950a

with the

he

Division
"Vice-President.

lif-,. '

as

•

tidns

^X X;"

15

..

Assistant

.

;V,; :

!X

V v." X

.

•

\

!

Plans

Tie

appointment
of Lloyd
Sifced Stdfieas an Assistant VidePresident of Manufacturers Trust
Company, New York, was announced by Horace C. Flanigan,
Chairman of the Board of Direc-

would

the

be

second

wiil

Messrs.

are

located

office

his

sistant

Treasurer, has been with
Fidelity
continuously
since

X

August,
period

1929,
in

except
when

1955

help

organize

Bank

at

he

Citizens

Beaver

brief

a

left

to

dent

A ocioTonl

oil

Kropp

also announced.

was

Yi&rd

Uvnci

i/inn

/;

of

harden

State

Teaneck, N. J.,

from

dividend

The

directors

of

North

New

...

York, have Voted
iA

the

semi-annual

_T

^

Y

25% increase

a

stock- divi-

.

^nij

dend,; consisting of
2%%
as
against 2% heretofore, thus placirtg-the stock on a 5% annual
stock dividend basis, in addition

McDowell

Sharon,

voted

at

which

was;

25c

* .*

''1

>:•

fry*' %>•:

year,

Trust Company he.

Bank &

Also announced

&

151

!':

v

*

y

Harrison

L.

—

J

-

,

resigned

—

-

•

X

:

•

c

as
.

-

President of The Gotham Bank,
Nfcw York.
..

\X:

'"X""X;

❖

:'s-

...

Pennsylvania National Bank, McKeesport, Pa^ third largest riaarea;

y

East River Savings

Bank, New

quarter-centurians celebrated at the annual meeting of
the bank's Quarter Century Club
oh May 21.
York,

in

bank

Mr.

the

National

of

Bank

and

Company,

May 25 Assistant Vice-Presi¬
dent of the Bowery Savings Bank,
N0w York.

New York

M. Harmon

elected

was

delity

_

He

iivhis

was

been associated

67th year and had
with the bank 43

of, its 100 years.
Mr.

Lewis'

Savings

clerk

in

1911.

an.

..

,

Union

Bank began
.

In

1924

as

he

a

was

Assistant Secretary of

the bank and 10 years later he beenme
year
was

Vice-President

Vice-President

in

the

Department of Mellon National Bank and -Trust. Company,

Pittsburgh, Pa., Frank R. Denton,
Vice-Chairman

the

of

nounced.

with

The

in

an-

Union

banking career
Trust

of Pittsburgh in 1926.
was

bank,

-

his

started

Company

In 1937 he

appointed Assistant Secretary,

1941

and

in

Assistant
1945

was

Trust

Executive

and

in*

1944.

Since

time

of

his

death

was

not

only the Senior Executive Officer
but also senior in length: of serv-r
Lewis

ice.

Mr.

The

Bank

Was

a

director of.

promoted

to

of. New York

merly served

as a

and for-

director of the

Savings Banks Trust Company.
*

A1 Kevelson

*

was

*

elected Chair-




and two years later was appointed
Assistant Vice-President.
Mr. Miller has been in the Trust
Department
during
his
entire
career with the bank.
Also
was

appointed

Jerome

P.

Union

Corcoran

Vice-President

Corcoran

started

Comptroller of the Cur¬
Qtn7kbnfdpr7nf thp
anjd the st<

rency,

twb institutions.

customer

may

National Bank of

cash checks any time for any

Phoenix, Ariz.,
$8,154,665 to
$8,399,300,
effective
May
15,
(Number of shares outstanding—

purpose.

1,679,860 shares,

value $5).

may

Sjt

ment

was

increased

from

$

tello,

par
❖

the

Idaho,

granted
a
charter by the office of the Comp¬
troller of the Currency.
W. B.
Rolfe is President and
Jones is Cashier.

George H.

The bank has

capital of $250,000 and
of

a

•

' "*

its

the

a

only

has

on

actually

small charge* for

that

important feature of
the

covered

balance

The

proposed

tional

Bank

in

the

Trust

and

commoq

capital

stock from $4,752,000 to $5,280,000

THE

by

life

insurance..

of

the

The plan,

which went into ef¬

fect this week, is

available at any

of California Bank's 66 offices.

Company of Pittsas a Teller in the
Banking Department. A year later

EQUITABLE

OF THE

UNITED STATES
Avenue, New York 1, N. Y*

Notice of Nomination of Directors

hereby given that in accordance with the provisions of die
York, the Board of Directors of
Equitable Life Assurance Society of the United States *ias
nominated the following named persons as candidates tor election
as Directors of said Society:
"x.

Notice is

Insurance Law of the State of New

The

,

WILLIAM H. AVERY, Chicago, 111.
Counsellor-at-Law

HAROLD H. HELM, New

WALTER KLEM, New York, N.Y.
Senior Vice-President and Chief

may

MURPHY, Upper Montdair, N. J.
Former Chairman of the Board of the Society

JAMES F. OATES, Jr., New York, N.Y.

Frederick

William

Woodruff,

died May 20. Mr. Woodruff
Board Chairman of the First
National Bank of Joliet, Joliet, 111.
73,

was

election

Kotcher to the
has

Charles

of

A.

J.

of DirecDetroit,
announced by

Board

Public

of

*

*

*

tors

President and Chairman of the Board of the
EDWARD L.

Bank,

been

Society

SHEA, New York,N. Y
Board, Ethyl Corporation

Chairman of the
SAMUEL R.

WALKER, New York, N. Y.
Vice-President, City Investing Company

A certificate

of nomination of the said candidates has been duly Ek4

with the Insurance

*

,

RAY D.

possible for

take considerable

I

/

MORTON, Chicago, III.
Chairman of the Board, Morton Salt Company

This and re-

time,

j

Counsellor-aa-Law
STERLING

plans, which will be sub-

lated steps

.

Actuary of the Society

J. RABURN MONROE, New Orleans, La.

__

as

York, N.Y.
Board, Chemical Corn Exchange Bank

GRANT KEEHN, New York,N. Y.
Senior Vice-President of the Society

A committee representing the
two Boards of Directors has been
appointed to formulate detailed

merger

.

Washington, D. G
President, Southern Railway System

tors and ^Philip K. Herr now
Fidelity s Vice-President in charge
of trusts, is to be Senior VicePresident.

mitted as quickly

'

HARRY A. DEBUTTS,

Chairman of the" Board of DirecT„

(

•

Lucas, now board Chairman of
Peoples First, will serve as ViceA

„

FRANCIS B. DAVIS, Jr., Yemassee,S.C.
Director and Member of Finance Committee, V
United States Rubber Company
♦

Chairman of the

Department of the State of New Ybrk.

The annual election of Directors of The

Equitable Life Assurance

Society of the United States will be held at its Home Office^ 393
Seventh Avenue, New York 1, N. Y., on December 2, 1959 from
10 o'clock a.m. to 4 o'clock p.m., and at said election twelve
Directors, constituting one Class of the Board of Directors, are to
be elected for a term of three years from January 1, I960. Policy¬
holders whose policies or contracts are in force on die
election and have been in force at least one year prior
entitled

to vote

in person or

by

proxy or

date of..the.
thereto are

by mail.

Joseph F. Verhelle, President.
•

*

.*

American

Trust

*

National

Company

of

May 29,1959
Bank

and

Chattanooga,

a
,

393 Seventh

H.

John

bank.

new

The

customer of the bank.

LIFE ASSURANCE SOCIETY

Mr. Byerly has been selected
by the directors as Chairman of the
board and Mr. Agnew as Presi¬

Mich.,
with The

Na¬

eacli

IR^'iS

r

name is First
of Pittsburgh.

the
been

owing is fully

.

#

he

state¬

A

monthly showing

charges
that

amount

service.

mailed

for is

apply

may

to

check cashed.

Savings Bank of San Diego, Calif.
increased

he

applicant does not have to be

ff

National

First

only

used, plus
An

*

•

amount

a

surplus

;

$150,000.

is

which

The maximum amount

properly

interest

was

against

customer

limited

National Bank, Poca-

According to a joint statement
by .Frank E. Agnew, Jr. and John

Trust

burgh in 1918

deposit credit account for

the

stock dividend, the com¬
capital" stock of The Valley

Peoples First National
Company and Fi¬
Trust
Company,
agreed

of Directors, nnd which

u

The

Trust Department.
Mr.

Insured Ready Cash creates an.
actual

a

plans for

were

Officer stockholder action.

a

1948 he kas been President and at
the

pointed
Trust

Trust Officer. Mr, Miller joined
later Treasurer.. In 1936 he Mellon Bank in 1946 at the time
elected a trustee, a Vice- of the merger of the two banks,
Assistant Treasurer and

President in 1937

'•

Richard G. Miller has been ap-

".He

i

,

with

career

Dime

elected

•

mon

the best features of those studied.

XnMXh

dent

City. '

fO

.J. Wilbur

Lewis, President and
Trustee of Union Dime Savings
Bank, New York City, died May
20, at a dinner celebrating the
100th Anniversary of the bank.

By

the

Syracuse, N. Y„
and
by
Continental Bank and
Trust
Company; and
Chemical
Bank and Trust Company, both of

-Elmer

formulating its own. The resuiting plan, known as "Insured
Ready Cash," IRC, incorporates

sit

in size in the United States, with
Credit Department, has been with total resources of nearly a billion
the bank since March 17, 1958. dollars. It will also be one of the
Previously, he was employed by - nauomslargest trust companies
Trust

on

*

a

credit plans across the nation be^
fofe

■•3".

Pittsburgh

troller .and. Supervisor

Merchants

surveyed

Louisiana

Quaid,
President, following the monthly
meeting of the Board of Direc¬
tors.

I
to King, the bank
number of outstanding

According

of Di¬

made by James F.

A. Byerly, Presidents respectively
'
°f the two banks, the proposed
Mabon, who is Loan Comp- combination will be a bank 28th

tional

of

has

Trust

,

''X,.- X

revolving consumer credit with
plan including life insurance,
Frank L. King, President, has an¬

merging
Bank

announced

June 3<F to stockholders of rec■
:
oi^ ;at: the close' of business on i X Archie
W.>: Mabon has:'r been
Jiine 19.
; X
'
.VelectedVice-President of'Western
Bvron

was

Vice-President a n d
Manager, the. position he held un¬
til joining Fidelity in 1957.

on

'■

sis

a

The announcement of this elec¬

tion

was

taXllJriCe"PreSident and C°mP" PraottoibTe Xate^oX thfappfovIl
of the

is payable

of the Bank

appointed

.

of ^Directors of The
National
Bank
of

Sha;o„;

Spatafora,

lehem, Pa., for 13 years and when
that bank became the New Beth¬
lehem office of the First Seneca

Pa.,
the election of Lloyd P. Beachy

share in 1958;

a

dividend

This stock

'

The Board

be

may

the

of

end

the

as

tary of Fidelity, Mr. Stark began

as

of

in New Orleans, La.

The

ness

to such cash dividend

"

v

Newark,_ N.
opened ] for busion
ness on May -26. ;,x
May:-z6.
'

*

X

a
12

" *
* • *
The Port Newark Office of the

Commercial

America,

by

Mav

value $19)X "

par

"Tony"

sis

^sistant Secre-

♦

sis

was Cashier and Director of the
First National Bank in New Beth¬

$500,000

effective

.

•

turn

Bank in Rimersburg, Pa. He later

of Aares out^la^dtng-^

50,000 shares,

in

was

increased

was

$200,000' to"

stocic

J

which

Trust

Bank

National

its _Upper- Midlown

(Number

Colonial

Kirk

nounced.

F,

merged with Fidelity.

,

..

former

his banking career as an Assistant
capital stock of Cashier at the First National

' •'*
*
The common
Tile

.

.

the

Company

President of

25 at the age of 6S'

he

with

.

"

_

_

1947,

th'e ^XoTfifi1936' ^ May

Advisory Board, it was an"ar0ld
H'
He,m'

/itBank■;of

.

'.*

Ellwood*city.

tional Bank

.

Director.

a

Horace F. Hallett,

i:

*

vk

n

*

New York, has elected William E.

Eppter _t<>

^it
In
became affiliated with
Keystone National Bank in Pittsburgh prior to that bank's merger

Rock-

i

the First National Bank, Province-

Chemical Corn Exchange Bank,

Area

n

*

transferred to the

\

the

of

t

elected

man, was

Specialized Loan Department of
the Head Office, 44 Wall Street,
;•

1!

ton, Boston, Mass., Arthur E. Gil-

_

Kropp joined the bank in
1940. He was appointed an Assist¬
ant Manager in 1956, and an As¬
sistant Secretary the same year.
was

at..

..

land-Atlas National Bank of Bos-

Mr.

In: 1959 he

Directors

of

All.

Jl

May
12,
(Number
of
outstanding — 100,000
value $10).

Pocatello

A

Assistant Vice-Presi¬

as* an

:!i

par

National

Mr- Dambaugh commenced his
iiAt' -^he regular meeting of the banking career with the First Na-

C.

$800,000 to $1,000,Following careful study Call*
by the sale of new stock, ef¬ fornia Bank has- entered -the field

shares,

Falls.

.

fi'ce at 149 Broadway, Manhattan.
The appointment of Ernest J.

000

^he

in

maintaln Annex.
nis ottlc« Jn the
Building

Mr. Conaway, formerly an As¬

-

acquisition

ntain

ma

■
Frick

this year by Marine Midland Corp.
Mr. Stone joined
the staff of Northern New York Trust Co.
Manufacturers Trust Company in purchased
the Adirondack Na1939.
In 1952 Mr. Stone was ap- tional Bank & Trust Co., Saranac
pointed an Assistant Secretary of Lake, N. Y. earlier this year. ■ ' .
the bank. He-is assigned to its of*
J
*
*
*
X

Pa.

-

Woo^St^f^^Mr^Cnn'awiv

hawk Valley, Utica, N. Y. and
Ilion National Bank & Trust Co.,
Ilion, N. Y. are underway.
The
proposed
merger,
if approved,

tors.

Pittsburgh,

m6|ger

a

announces

Harris

of
San
the

ital stock from

have been named Assistant Vice-

pany,,

for

Calif.,

of

Company,

Chairman of the Board and Chief
Executive Officer.

of

Salem, Winston - Salem,
N. C., increased its common cap¬

rectors

Presidents of Fidelity Trust Com¬

-V* Vs*x;x-"xv;X

* •
for

Plans

Bank

been elected to the Board

•

between Dambaugh and Stark
Mariiie Midland Trust Co. of Mo-

^

Winston

Directors

Trust

election

National

*

of

Board

Francisco,

:.t

First

*

American

value $20).

$

The;

A.

Conaway, Loring E.
Dambaugh and William M. Stark

' ""X"

outstanding—150,-

par

Officer

"USt V>aicer-

L.

shares,

The

stock, effective

new

%

ap-

was

Trust

Officer^

~

Robert

became

Overseas

Trust

V

comptroller until Maass, President, announced.
associated
X Mr/ Hug;' joined Security in
Operations Group of the 1957 as Director of Public Rela-

when

he

1948

000

shares

shares

to the Trust De-

In

Assistant

an

of

fective

*

i,on

a .camf

tho
tne

Bank

j£e'-i?r

'

'■; '•"C

;

..

Y^ce~?res^e—

Bank*

*'X

assistant

as

1956

Central

Brooklyn,IN. Y.

the Comptroller's Divi-

in

of

man

ber

the time

at

of the two banks
and became Assistant Vice-Presi¬
merger

by the sale of
May 14.
;

500,000 to $3,000,000 by a stock
dividend, effective May 15, (Num¬

GORDON K. SMITH,

Secretary

£8

The Commercial and Financial Chronicle

(2432)

Continued

Crucible Steel Company

from

.

.

Thursday, May 28, 1959

15

page

Offers Preferred Stock
To Common Holders
Steel

Crucible

of

Co,

By OWEN ELY

is offering its common stockhold¬
ers of record May 26, 1959, rights

stock then held. The of¬

which

fer,

will

expire

June

9,

1959, is being underwritten by a
group headed by The First Boston
Corporation.
The new preferred stock is con¬
vertible, at any time prior to re¬
demption, into common stock at
$29 per share subject to adjust¬
ment. It is redeemable at the op¬

of

tion

the

at redemp¬

company

tion prices ranging from 105.25%
for shares redeemed prior to June

1964,

deemed

100%

to
on

1,

or

from

Proceeds

.

"

shares re¬
after June 1, 1974.
for

sale

the

of

the

tiew preferred stock will be apfjlied to the cost, estimated at
$23,000,000, of additional facili¬
ties at the
company's Midland
Works. In addition, the company
fs negotiating the sale to institutlonal investors of $15,000,000 first
mortgage bonds, due 1984, to pro¬

vide

the

of ' the

balance

funds

Tampa Electric is

Crucible

Steel

is

principal
producer of special purpose steels,
including high speed, tool, die,
valve, stainless and other alloy
f tools.

It is

a

leading producer of

a

vac-1

titanium metal and its alloys,

melted steels and certain

tium

in

one

Florida, all of which

smallest of the

of the three important electric utilities

are

three with

known
annual

as

"growth utilities."

It is the

of $32

revenues

Florida.

Tampa is an importing, exporting and distribution center. The
important industries in the area are the raising and process¬
ing of citrus fruits, cigar manufacturing, phosphate mining, cattle
raising, lumbering, dairying, naval stores, fishing and tourist

most

business.
area

was

The number ol

airlines serving the Tampa Bay trade
increased to ten last year when Trans-World, Northwest

Orient, Delta and Capital began using the International Airport.
It is planned to make the airport into a major jet-age air
facility,
and purchase of additional land is now under way.
The

city last year opened Tampa Industrial Park with new
including Jackson Products (dishwashing machines),
Globe-Union (batteries), and the Schlitz Brewery.
Other new
plants, now building or projected, include Budweiser Brewery,
Camden Grain, A. S. Aloe (pharmaceutical warehouse), Thatcher
Glass, Florida Steel, and Florida Nitrogen Co.
;
industries

new

Tampa is among the fastest growing electric utilities and with
industry coming into the area this growth should continue.

Revenues
three

are now

times

about eight times as large as in 1935, more than

big as in 1949, and more than double 1952. The
average compounded rate of growth since 1953 is 14% for revenues
and 9% for share earnings.
as

In 1958 residential

increased

17%, with the average
triple the 1947 figure and
15% over 1957. Commercial sales were up 10%, but industrial
declined 8%. The latter decline was due in part to the reduced
cost of coal and the corresponding decrease in industrial rates
(un¬
der the fuel adjustment clause). Also the recession retarded the
growth in power sales slightly; and the freezing weather reduced
customer

revenues

using 4,675

kw,

sales of citrus fruits for packing and processing.
Growth

of

the

company's electrical heating load

continues.

Last year 601 central heat pump units were
added, compared with
401 in 1957, bringing the total at the
year-end to

carbon

were

Total

sales

of

the

in
1958 amounted to $186,711,480 and
met
income
to
$4,274,793. This
compares with total sales of $236,389.698 and net income of $6,543,-

$94' in

company

1957.

Giving effect to the sale of the
o&w preferred stock and the new
first mortgage bonds, capitali¬
sation

of

the

March
31, 1959 was: $38,472,000 in debt;
$9,885 shares of cumulative con¬
company

at

vertible preferred stock, par $100;
end

3,795,631 shares of
etock, par $12.50

common

(Special to The Financial Chronicle)

Wtem

Pease

has

Mass.—J. Har-

become

affiliated

with Jay C. Roberts & Co., Third
National Bank Building. He was

formerly

with

Coburn

&

Mid-

dlebrook, Inc. and in the past with
-du Pont, Homsey & Co.

With Midland Securities
(Special to The Financial Chronicle)

KANSAS

Entsminger
•

curities

CITY,

also 2,506 homes with radiant

Mo. —Guy P.

is with Midland

or

resistance electric

3,733 using window heat pumps.

.

Generating capability of the company's plants 'aggregated
560,000 kw at the 1958 year-end vs. the peak load of 405,000 kw.
The company is constructing a 175,000 kw
generating unit at the
Gannon Station which, should be complete before the end of 1960.
Substantial fuel savings were realized last year due to increased
generation at the modern Gannon plant, sale of power to neighbor¬
ing utilities (instead of purchases), and substantial cuts in the
price of oil and coal (as indicated above, however, some of the
benefits from lower fuel prices were
passed on to

customers).

Further reduction in fuel costs

phosphate cars, which

now

seems

likely.

timore.

as a

construction

substantially lower than a year earlier. On the
ether hand the citrus packing and
processing industry has been
operating at top capacity this year.
v
was

Last year Tampa Electric
tained only part of the amount

applied for

rate increase but ob¬

a

requested; if earnings prove inade¬
quate, the company will make another application to the Commis¬
sion. The new rates should add about
$765,000 to annual earnings
after taxes, equivalent to about 320 a share.
Capital structure at the end of 1958
*

'

:

•

..

was

.'

Long-Term Debt

area we

offers

much

UTAH

20

"-Includes

over
S3
million
Federal income taxes.

at around

>

899, Dept. K

Salt Lake

City 10, Utoh

Serving in
Utah-Idaho

Colorado-Wyoming




Allies

our

these

$122
retained

earnings

restricted

100%
for

future

'

...

$2.10-$2.20 for calendar

year

(Special to The Financial Chronicle)

,

With

Market

to

create

of

are

men

spending additional cash dol¬

(7) The funds available for the
development
loan
fund—

new

which

soft

are

compete

with

American

investors

in

private

this

Air-Space-Nuclear

human

critical

into

Age,
coordinate,

ability to

concentrate and

in

time

to

be

of service?

the

Commies
infiltration, by inciting guerrilla warfare
and by purging opposition.
But
they always tie their self-seeking
some

areas,

made

headway

assistance with

the

other

hardware

military

our

strings and

many

On

conditions.

by

seems

to

Free World. Such gifts may some-

day be used

Also,

in reverse.

oc-

casionally, we have given weapons to neighboring enemies; without

£

the possibility
might be avoided.

weapons

rump wars

There
we

and

obligated to

which

with

these countries.
rea

,

Formosa and Ko-

This is not to
we should garThe extension

these

the

areas.

Monroe

Doctrine

the

over

critical

areas, together with our
air
power,
instantly
ready to
strike, should offer suitable pro¬

tection.

:,

a

«.

of

total

Dec
of

1958, there

31,

billion

$6.6

in

was

unex-

"V.""7C
pended foreign aid funds. For the
fiscal

year 1960 the Administra¬
tion is asking for $3.9 billion.
In

addition to all this we), as a
are

nation
being asked to make two sub-

stantial

contributions

for

tary stability. These contributions
are
$1.4 billion payment to the
International
a

Monetary Fund and
$3.2 billion subscription to the

this

Bank.

entire

borhood

of

structures of alien countries,
unrealistic
0£

^he

spite of

We

to

world's

in

and ingen-*.

its back 72 other7

carry on

now

receiving foreign aidi;

face

now

that

assume

population

our resources

can

nations

a

Additionally,

$12 billion deficit,

have

we

national

debt

financed

at

mounting

a

being

now

4%

interest

re-?,

on-

a

short-term basis.
.

-

—

.

..

.

A? $2 billion. reduction
year's
•y.-rv

...

in. this

of Foreign Aid in three,,..
^

JS,forces

shouldtake up the vacuum.

T*1® security of our country and
its people, ABOVE ALL, depends
economic strength at home and

on

military -forces based principally
in North America.We should revert to constitutional government

-conceived

as

$15

in

the

billion

Founding

our

History

has
definitely \ estab7»lished what happens to any coun¬

I; ask

neigh¬
on

economy.

our
-

Do

"this

What, in;
based on your ex-a
nprjpnr.p
pan
perience, can this country afford
to spend on a necessary and bur-*:
densome
defense
and
maintain;
our
other heavy economic prorS

your

question:

opinion,

and stm survive?
A

*•

,

.

Are we paying for our °wn
funeral with Foreign Aid. ;<;/"*
I say the answer is: "Emphatically Yes, unless we cut out this,
Foreign Aid Program!"
■

amount

by

Fathers.

world

economic development and mone-

World

effect

administer

to

tively without becoming involved
and
interfering in'the political'

try which follows a philosophy ofpermanent over-spending.
'.--.iuf

Sees $15 Billion in Aid

■

i

As

on^

(8) Counterpart funds should
liquidated as these funds are

de-

Ire

examples.

rison

of

be

Red

however, that

are

exporters

Foreign Aid appropriation,.

directly
aggression.
Most certainly we should continue
limited
military
assistance
to
.

threatened

American

few countries which-

morally

are

fend

are a

of
be

rational terms.

hand,

be given away at random to anyone who claims an affinity for the

and

loans
should

—

to the

over

impossible

_

In

have

hard

Export-Import
Bank to be utilized for re-insuring

these troops

move

areas

turned

loans

money

nationalities, from various
climates, dispersed globally.
Assuming their respective governments would cooperate, have we,
the

rather

lars.

60

some

a

h

i

a.

m

A.S.E. Stock Quotes to
Go

experienced
businessmen
honestly believe we can endure

can

such

N.Y.C.'s Radio

on

has

a

burden?

When I

came

to Washington not

too many years ago our total government

amounted

expenses

to

One-Half Billion.

T.

Edward

Stock

McCormick, Ameri-?
Exchange President,'

announced plans to transmit.
closing prices and net changes on
a select list of about 100 ASE issues
on
New York City's radio
station

WNYC

beginning at 3:50
pm on Monday, May 25/
Congress 1959. Seymour N. Siegel, director
re-appraise the entire foreign aid of radio communications for the
program and suggest the follow- City
of New^York;* stated that
ing be given consideration:
the five minute" spot will be ex-:
I recommend that the Chamber

Commerce

of

and

o'clock

the

(1)
Wastefulness, inefficiency tended to ten minutes in the near
incompetence in the admin- future. The program will be aired
istration of Foreign Aid programs each business day.
must be eliminated promptly and
-The exchange has constructed
it must be cut to the bone.
a
special broadcast desk on the
(2)

Yarnall, Biddle

PHILADELPHIA, Pa.—Yarnall,
Biddle & Co., 1528 Walnut
Street,

Greater

encouragement

should be given to private capital
as
a
substitute for governmentfinanced

Point-4 programs. (Primanagement and know-how
made America great and insures

vate

trading floor. The closing prices
will be beamed directly from the
market's nerve center by attractive Miss Mary June Montgomery,
associate editor of "American
Investor" magazine,

self-liquidating programs.)
(3) Tax liberalization, adoption
by Congress of the Boggs Bill
would be a step in that direction.
(4) Export-Import Bank should
administer existing appropriations
and include re-insurance of pri¬
vate

Rejoins B. C. Christopher

Irdernational

than

Army of 4.9 mil-

an

tile

that

program

boasts

assistance

But

men.

commodities could be moved into

and

Write for FREE COPY

KANSAS

pi

16

33

1959; if realized this would
reduce the price-earnings ratio to around
23, more in line with
PE-ratios for other growth utilities; but in view of the rather
dis¬
appointing first quarter these estimates may prove a little on the
high side.

Box

POWER

51%

40*

Equity (2,390,000 shs.)

-

Percent

$62

(range this year 54^-411/4 and last
year 45y4-34y4>, the $1.20 dividend rate represents a
yield of 2.4%.
Based on earnings for the 12 months ended March of
$1.75 the
price-earnings ratio is 28.5. Obviously the present price reflects
the expectation of a substantial
gain in earnings this year, reflect¬
ing the rate increase, etc1. i Early this year earnings were estimated

explains why

opportunity
to
industry.

follows:

At the recent price of 50

New book

so

as

•

Millions

Stock

Administration

and maintain
lion

flourish-

.

We must consider the impact of

Earnings for the first quarter this year were 440 vs. 460 last
year, the decrease being due principally to a 37% increase in fixed
charges and preferred dividend requirements. Interest charged to

Total——,

serve

of

be further reduced.

Common

the

use

Tampa empty, for hauling
result freight rates on coal may

Preferred Stock

AREA RESOURCES BOOK

Experimental

return to

Se-

Company, Inc., 1016 Bal¬

heat, and

5

;

Tampa has a larger proportion of industrial revenues than its
neighbors—28% last year, compared with 14% for Florida Power
Corp. and only 10% for Florida Power & Light; however, 28%-is
not unusually high.

coal has proven successful and

Now With Jay C. Roberts
SPRINGFIELD,

1,503; and there

.

enabled

has

is

economy
;

military

our

say,

Other alloys based on nickel and
cobalt. It also produces specialty

steels, electrical steels,
faermanent magnets, and certain
fabricated steel products.

*

The

million, com¬
pared with $57 million for Florida Power Corp. and $145 million
for Florida Power & Light. Tampa serves a population of about
435,000 in the city of Tampa and 45 adjacent communities in

residential

fueeded.

their

Tampa Electric Company

to subscribe at $100 per share for

09,885 shares of 514% cumulative
convertible preferred stock, par
$100, at the rate of one share of
preferred for each 38 shares of
common

when

ing.

America

bank

credit

similar

which is in existence in

to

that

Joins Zilka,

Smither

(Special to The Financial Chronicle)

PORTLAND, Oregon—David S.
Jones is now with Zilka, Smither
& Co., Inc., 813 Southwest Alder,
members
Stock

of

the

Pacific

Coast

Exchange.

Germany,

Great Britain and Canada.

CITY, Mo.—Doyle H.
(5) Teams of engineering and
George has rejoined B. C. Chris-' members of the New York'Stock accounting experts from private
topher & Co., Board of Trade Exchange and other
leading ex¬ industry should be invited by govBuilding, members of the New changes, announce that Louis ernment to serve without pay to
York Stock Exchange. Mr.
George Cunningham is
now
associated rationalize these programs.
has recently been with Walston & with them as a
registered repre¬
(6) A further study should be
Co., Inc. in Long Beach, Calif.
sentative.
made to determine how surplus

Lester, Ryons Adds
j,

(Special to The Financial ChroniclI),

LOS
B.

Cook

staff

vj"

ANGELES, Calif.—William
has

been

added

of Lester, Ryons

to

the

& Co., 623

South

Hope Street, members of
the New York and Pacific Coast

Stock Exchanges.

'

♦'

Volume

189

Number 5850

.T; The Commercial and Financial Chronicle

(2433)

Continued

from

20. yy;.

page

<
r*

v,

i

Our

>

Benefits
contr J tual

obligation during the
life of the grant. Thus a grantee
who has applied in good faith,
and has fulfilled his representa¬
tions as to the nature of his prod¬
ucts and activities in good faith,
has the assurance of undisturbed

enjoyment of the grant of tax ex¬
emption during .the period of its
effectiveness. Under the current

policy

does

barrier

to

not

interpose

time,

expansion units of industries

es¬

likely out of the market for the rest of the fiscal
period, it is
believed there could be a better tone in the
Government market
since not a few of these
obligations are selling at levels that make
them attractive for those that are interested
in making commit¬
ments if only on an
averaging down basis.

law, grants ; are \ revokable, -but
only after notice and opportunity
for hearing, for specified causes

the

in

States

•

,

enumerated in the

law, including
misrepresentations -in

obtaining the grant. Revocations
grounds which do not involve
bad faith, such as failure to com¬
mence operations within the time
stipulated by the grant, or cessa¬
tion of operations without consent
of the Governor, cannot be given
•retroactive effect.
The
10-year
on

record -of administration since the
enactment

of

1948

the

Tax

Ex¬

emption iLaw makes it/ amply
clear
that
grantees who >havc
.

commenced

and r.. carried

pn^tlhe
operations for which they were
granted .exemption in the degree
^

of good

faith which is expected to
characterize normal, business op-

aerations have not -been

Processing Applications
A few words may be said about

such

obligations, since there

application, after
publication of notices in the two
general circulation
A report on the
eligibility of the product and a
recommendation as to the disposi¬
tion

of

made

the" application

.

'

then

representative 1 of the
is then
requested to

applicant

-

.designed

to

-

-

insure-that

grants previously given underr the
.1948 Act or the»Current1954 Act,
and

enjoyed by . the grantees over
a period of years, shall not be;un;duly' prolonged by'-subterfuges
such as liquidation or. other ter¬
mination of the previously estab¬
-

lished

onit,

production
other; unit

its

and '.transfer of
and. facilities to

under

related

an¬

owner¬

ship. Where the product involved
is. substantially, the saVnei USC by
a new enterprise, even under un¬
related

ownership, of property of

value in

of

$5,000 utilized
by a previous grantee, - requires
prior consent of the Governor.
a

excess

One of the standard terms

-

and

conditions contained in each.grant

forbids grantee from allocating to
the
of

tax exempt operation profits
operations or -. activitiesnot

within the scope of the grant,, f or
the purposes of evading taxes in
any.

Again: the
"good faith." - And

other jurisdiction.

touchstone

is'

grantee which carries on bona
fide manufacturing operations in
a

Puerto .Ricdriuid

which

acts

.

in

competent legal
and accounting advice in connec¬
tion Avifh such matters as price
accordance

with

*striictufje>^nd place of final sale
wiir not" encounter problems un¬
der^ thiscondition.
.. ,.
-v
:;.lnquiry ^^^s'^o"-eligibility' is not

revised

of

into the

decree

a

tion

-and

form

of

granting tax

are

submitted

a

-The

authorized

is

Governor

to

con¬

of the appli¬

cant, methods c of financing in¬
volved, .methods
of marketing
involved, and other factors which
may have relation to the public
interest. Again the touchstone is
good faith.
Questions involving
the possible exercise of this dis¬
cretion fo
deny an application
practically never arise in
the
cases of reputable manufacturers.

that the

If

questions arise, they
administratively
possible, or else the
applicant is immediately advised
and affordedj an opportunity to
any

v

whenever

take

action

such

agencies-

may

Governor
Office

Treasury with its desire to get

Tax Exemp¬
report and recom¬
mendation upon the case. Upon
signature by the Governor the
grant becomes final. "The 10-year

first

dedicate

their

industries

which

resources

will

benefit to

result
the

and
in

people

of Puerto Rico. In the laws which

have

spirit

been

of

enacted

the

and

no

signs yet of

that

the

industrial

Puerto

Rico

in

administration

not

other communities

in the

States,

that tax

competitive conditions, which

'

.

sale

and

of

iron

talization

of

and

diversified

a

steel

products.

of

31,

Etco Securities
Securities, Inc.

•

been formed

has

with

offices

Bank

,

in

Opens
Tenn.—Etco

CHATTANOOGA,

the basis of the better yields that,
available in non-Treasury bonds, appears to indicate
higher
rates for long-term Federal bonds.
;
■
- v;
,

Banks
is

It

Building to engage in

the

Chattanooga»
a se¬

business.

Officers

are

Riggs,

President

and'

F.

Treasurer, and V. P. Riggs, Sec¬
retary.

/•;;

:y;y;:y

switch

Liquidating Intermediate Issues

evident from

out

of

2%s of 1965.

reports that the banks

intermediate

term

are

Governments,

•

'"

This is being done in spite of the sizable
yield that
obligation. In some instances these funds are

is available in this

being reinvested in tax-free obligations while in other cases the
money is being loaned out to customers. It is the opinion of some
money market followers that the intermediate term issues will
continue to be liquidated by the banks.

*a

in

continuing to
especially the

tain

Mackey Add

On

Reviewing Listings

kind

the

the

market

expect for
The
that

a

of

U. S. GOVERNMENT
and

-'

■

•;

y

J

_

FEDERAL AGENCY

the

delisting

President

future

will

be

to

considered

-

are

guaranteed

common

its

on

merits.

given
were

value

when

shares

outstanding
was $200,000

Mr.

that

Previously,
delisting
was

of

2,000

Funston

the

or

the

or

factors

less.

involved

again
in

the

continued
on

the

ured

listing of any security
Exchange cannot be meas¬

mathematically. The Board,

he said, may act in any situation
it

feels

that

for

considering

security is not

a

continued listing.
a

specific

factors, including

case,

weight

any

pany.

In

the

to all

current in¬

issue formation supplied by the

outstanding-or the value-of the

less

or

market

emphasized

if Board would give

10,000 shares or less of a preferred
issue or

ered

if

or

SECURITIES

added, will, of course, be consid¬
consideration

said suitable

suspension

or

less—both af ter excluding concen¬
trated holdings.
Each case, he

auction

public has come
listed security.

Exchange

in

broad

outstanding shares is $400,000

*

the company at
1959 was; $191,964,305
in long-term debt; and 7,493,192
shares of capital stock, par $10.
March

on

For

substantially
adverse-tov tfae-remployees. of «uch City, members pf the New York
related -enterprise may result. This Stock Exchange.~




an

rolled

~

Giving effect to the sale of 1110*
new first
mortgage bonds, capi-'

are

the obligation

exemption will

consequence

line

George

N.Y.S.E. Revises Basis

May 14 John Mackey will
not acquire a membership in the New
be granted where employment of York Stock
Exchange, and will
enterprises under related control become a partner in McMannus &
will be substantially curtailed or
Mackey, 39 Broadway, New York
other
and

facture

new

interested in such

cold

.

This
corporation is the fifth
largest steel company in the coun¬
try and, with its subsidiary and
associated companies, constitutes
an integrated unit for the manu¬

curities

these laws, the Commonwealth of
Purto Rico has recognized that

McMannus &

On the other

and

products.

of

be

achieved at the undue expense of

the heavy side.

let-up in the

hot

and

sheet

the

development

shall

on

a

are

of "good faith" is
reciprocal and, has demonstrated
that a sympathetic understanding
Keith Funston, President of the
An
important
long
standing will be afforded to the problems New York Stock Exchange, has
of those who come prepared .to announced that the Board of Gov¬
policy in the administration of the
tax exemption law is the policy dedicate their resources and ernors had revised the basis for
against moving industries, "origi¬ know-how to industrial activities reviewing the continued listing of
nally
an
administrative policy which contribute to the economic preferred stocks and guaranteed
adopted by the Governor,
and development of Puerto Rico and common stocks.
subsequently reaffirmed by the the improvement of its standard
Mr. Funston said a primary ob¬
Legislature. This policy declares of living.
jective of the Board was to main¬
of

sheets

on a

of

period.

know-how to the establishment of
substantial

strip mill; and con¬
a
new
plant on the'
shore of Lake Michigan in Indi-'
ana, near Chicago, to produce
electrolytic tin plate, galvanized'

obligation.

In

to

issues is still not

hot

struction

Therefore, it seems as though the Government, in order to
extend the
maturity of its debt, will have to meet the existing

payroll. Accord¬
ingly the period during Which a
grantee taxes no action under the

deducted from the 10-year

are

three-1

no

Weirton, W. Va. plants to in-*
ana
improve production
facilities for electrolytic tin plate'
and cold rolled sheets; an increase
of the annual ingot capacity of the4
Great Lakes plants from 3,700,00(P

tinuous

a

issues available for those that

factory

grant, prior to establishing • his
physical plant and commencing
manufacturing operations is not

new

It is expected that

net tons to 4,200,000 net tons and
installation of a new 80-inch con-"1

come

tax-exempt
obligations that are being introduced to the market, which has to
be taken to mean that there will be
plenty of the tax sheltered

date three months after first date
of

;

although the

calendar of

;

#

Treasury Must Meet Competitive Yields

hand, there

in

'
be

crease

The corporate market is still digesting the bonds which
were
recently offered and did not go so well and this, along with some
of the coming new offerings, indicates that the
competition for the
investor's dollar is not going to decrease
very much

period of corporate tax exemption
begins to run from date of com¬
mencement of operation, which is
defined under a regulation as a

used

-

will

■

or

its

,

his

1, 1987.

on

The major portions of Nation-'
al's program include expansion Of

money, even though in not such a big way as was true in this
past
fiscal year.
/■
;„„yy
y\
-

'

redeemed

required to complete the program.
•

sure, this
in the past,

of its debt

those

ad¬
ditional sale of securities will be'

a

balanced budget in the next fiscal
year.
This
that the Treasury will still be in the market for new

mean

Industrial

of

some

Otherwise,

$300,000,000 expansion pro-1

year

To be
case

at

than

less

annum.

proceeds

gram.

thinking and psychology of the law-makers in Washington,

there will not be

are-

with

of the new fiscal year.
as has been the

shortrterm basis

a

of

beginning June 1, 1959 to

for

The

.

will

submitted
to
the
by the Director of the

tion

on

refundable

connection with National's

-

;
All of these important forces which are overhanging the
money
and. capital markets will have to be resolved one
way or another
in the not too distant future
and, unless there is a decided change

in the

;

remedy
the objection. Thereafter the pro¬
posed decree and reports of the
as

100%

•

—

be

cost

per

after June

longterm basis will ask for an increase in the rate
for obligations with
a
maturity of more than five years. Also, it is believed that the
Treasury will, ask for an increase in the debt limit.

resolved

are

4.687%

several

Expected

not

they are redeemable at prices
ranging from 103%% for those re- /

■

going io go on indefinitely since financing of this
kind will add to the forces of inflation by
contributing to an increase in the
money supply and by the creation of deposits. Ac¬
cordingly, it is the expectation of most money market specialists

the

agencies
designated
departments of Justice,
Treasury and Labor, and the Eco¬
nomic Development' Administra¬
tion.

be done

can

the

are

?;;

deemed

but this is not

their recommendation to the Gov¬

conclusion; - it may be said
limited'ld'ri^miitjife.of the prod-, that the very substantial benefits
uct. and the manufacturing proc¬ of tax exemption are made avail¬
ess1 involved.
Under the law the able for those who are
prepared
sider the character

along shortly after the start

draft

agencies designated in the law for
ernor

;

Then there is the borrowing by the Treasury which will

- ;

exemp¬

to

are

Hike in Rate and Debt Limit

presented
submit draft of proposed findings
with enforcement problems., -re;:;'.
and conclusions. These are then ]
; The .1954
Act contains preyir
sioijs

;..(y • y

Federal Reserve Banks. The extent of the rise in the
Central Bank
rate will give the answer as to how the Government
market will
act in the near future.
v
^
;

by the Economic Develop-

other

or

is

:

reality one of these days, since the big discrepancy between the
prime loaning rate and the Central Bank rate will not continue for
long as it stands now. This is too inviting a situation for the
deposit
banks to ignore,
especially when the demand for loans is on the
increase and eligible paper can be discounted at a
profit with the

Rico.

Puerto

v.1

will take place when least
expected but nonetheless will become

newspapers of

in

' r.

.

will

interest

an

own

Treasury
things that must be contended
within the not too distant future.
Probably the most important to
be considered is the
coming increase in the discount rate, which

attachments

each

on

of the issue prior to ma¬
turity. Prior to June 1, 1964, the

The money market
appears to have taken the increase in the
prime bank rate in stride, although it is still too soon to
say that
there will not be a further
worsening in quotations of

as would
be necessary to supply
full information. A public hearing

is held

of a mandatory sinking fund
beginning in 1964 which will re¬

tire 80%

Higher Discount Rate Inevitable

ex¬

peditious processing, the applica¬
tion
should
be
complete
and
contain

The bonds will have the bene¬

business is creating
vigorous with the passing

of time.

processing of tax exemption
applications. A notarized applica¬

should

bonds

issues since the demand for funds in their
a need for cash.
This could become more

the

tion must be filed. To insure

fit

Corporations, the important buyers of near-term
Governments,
according to advices have been in some cases moving out of these

production, where no adverse
effects on existing employment in
units

Kuhn, Loeb & Co., Harriman
Ripley & Co. Inc. and The First
Corp. are joint managers
of a group that offered publicly
on May 27 an issue of
$80,000,000
National Steel Corp. first mort¬
gage bonds, 4% % series due 1989,
priced at 99% to yield 4.687%.;
Boston

Treasury

most

of

related

Mtge. Bonds Offered

ments in the future, such as a sizable increase in
the discount
rate,
further deficit financing, and a
higher rate for long-term Treasury
bonds would not be
entirely favorable forces. With the

tablished in the States, or expan¬
sion units involving realignment

the

Governments

on

By JOHN T. CHIPPENDALE, JR.

showing signs of firmness in
spite of not too much activity and the
understanding that develop¬

any

started

in Puerto Rico for the first

would result.

National Sleel Corp.

*.

The Government bond market is

industries

new

»—

Reporter
1

fraudulent

29

con>

Aubrey G. Lanston
Sc Go*
INCORPORATED

'

-

20 BROAD STREET

NEW YORK
☆

CHICAGO *

☆

☆

BOSTON

!

The Commercial and Financial Chronicle

30

.

Thursday, May 28, 1959

.

(2434)

invested assets

Twin

City Bond Club

,

The;stock Js selling at presentV

S4.1% to the investor.- The $3.75 rate is Composed of $3.50 regular
annual disbursement jolus a 25-cent year-end extra. The pay-out
ratio is only about 60%. In 1958 approximately 3.9%; was earned'

Bank and Insurance Stocks

38th Annual Picnic

33%; dividend 97%.

in the 90-91 price area; at which the S8.75 dividend returns about

:

r"

.

Minn.—The 38th

ST. PAUL,

nual Picnic of the Twin

an-<

City Bond

Club will be held June 18th at thp
White Bear Yacht Club.

This Week —Bank Stocks

The out¬
NEW

ing will be preceded on June 17
a

the combination of four banks up

consecutive year by

for the 20th

given

the Bond

by

of

Members

Club

the

at

Committee

in

Picnic

1959

Minneap¬

Incorporated,

William

O'Connor,

Dean

Witter & Co., Minneapolis.

Bridge and Gin Rummy: Irving
J. Rice,

Irving J. Rice & Company,
Inc., St. Paul.
George A. MacDonald,
First National Bank of Minneap¬

Solicitation:

Winston

board of directors shall believe to be in the best interest of

stockholders,

Curtis, St. Paul.

at

■

Elects New President

-

such nroposal will be

President

elected

Hunt

Chatham

ham,

the

of

Old

Old Chat¬
County, New

Club,

Columbia

York, to succeed Orlan A. John¬

President of Gifford-Wood
Company of Hudson, New York.

son,

NATIONAL AND GRINDLAYS
BANE LIMITED

.

Cash
U.

Head Office:

If BISHOPSGATE, LONDON, E.CJ

Federal

Loans

198,850,744

Bank

2,100,000

and securities

and

SQUARE, S.W.I

13 St. James's Sq.;

Govt.

Nairobi; Ins. Dept.: 54 Parliament
Bt.; Travel Dept.; 18 St. James's Sq.; In¬
Tax

Depts.:
13

i

to

St.

54

Parliament

St.

A

James's Sq.

the Government In

:

adkn, ram,

.ZANZDA* a SOMAULAND namCRMSM

Branches in:

rec.

PAKISTAN. CBYLON, BURMA, UNU,

TANGANYIKA, ZANZIBAR, UGANDA.
ADSN. SOMAULAND mOTRCTOUATB,

MBKIMKN AND BOOTHBKN BMOOWA.

14,288,4G4

acceptance—

on

other

100.162

37/8

1,240,000

______

100.130

U

100.086

;

1,545,000

3%

100.133

;;

37/8

ioo.i25.;;f

3,485,000
y:

Clinton, Mass.—
Mount Clemens, Mich.
Las Vegas, Nev.

_

J : 1,575,000

Bayonne, IN. U,-T"r .• Yri.oayoilllc, N. J/

— —v,

Edisbn Township, N/JV——-.4 /

Raleich

100.132:;!

.

1,815,000
l,OUtUVU.

'
■

/ 3%

■' 36,325,000

C

100.146;;'
iwu.
100. 125 p.

^

' 965,000

N.-C.:,—? i;170,000
L170 000
N

""'r 101.067 :
lou
/*: 100.126 I

Lorain, O.-;.—

*

100.127"

37/8

'2,085,000

*

100.006
100J

" :

"

3,825,000
,3,795,000 '

,

1

loo

1,550,000

•v

—

.Reno, Ney.

.:Durham;

;v

M,425,000 "

Lake Charles, La

assets—

4,207,177

payable

Dejjosits.i

obligations—.

Loans

Banking

securities

5.0

distribution

A

of

10

The bonds

and

100.141

:

v

|

100.195 x
/-./H..

2,755,000

secured by a first pledge

unconditionally payable under

a

of annual contribucontract between the Public

—^

discounts.

Miscellaneous

assets

0.3

■

;;

government bond maturities, none are in
for several recent years follows (maturity

Interest

on

them is exempt froin

Federal'incdme taxes:;
.
;
V;
.' / ff)
The present offering is the 24th public offering of New Housr
ing Authority bonds and brings the total so issued to $2,630,464,000.

>

1.8

—

certain other States.

York and

37.5%!

:

/—.■''

/

premises

of

years,

are

101.218

.

:4,740,000 u

Issue)

(Second

iWaco, Texas./.-—

principal categories follows:

35.5%

3,340,000

Housing Administration; (PHA) - and the local agency issuing the
PotherTiabib
7,'98L5tii %.b'onds..:The faith of the United States is solemnly pledged to the
891,732,353 ;
/ payment of the annual conti'ibutions.by the PHA. »
The bpnds are legal investments for savings banks and, with
$1,001,086,409
./the exception of tlie Puerto Rican issues, for trust funds in New

Accrued

19.9

x

Puerto Rico

$84,849i2iiv /i tions

A breakdown of these assets into

Other

//Puerto Rico (First Issue) 1/1

14,849,211

52SES J,ayable

$1,001,086,409

.Government

Maturities

■

■

5 to 10 years

Up to 5 years

in 1951.

The first offering was made

-•///■

99-:

*1

1956

t9

1957-..-

73

$27

80

Christiana

$20

4

♦Due

in

79

1958

.'.

$21.

S80
"

,

:

•

"

HZ

..,

.

.

..

.

c

.

years.

tDue

in

7

5

to

in

6

to

8

$Due

years.

in

3

to

9

§Due

years.

in
*

years.

The next tabulation

:

s

gives the average rate of return derived

from investments and from loans and discounts:

Average Rate of Return
,

On loans & discounts

On securities

On loans & discounts

3.00%

1.69%

1956

1953

3.19

1.90

1957

1954

3.16

1.90

1958

1955

.3.35

'

~

"•

•

4.23
*

2.10%

Book
Value

2.52

Statistical

Record

—

Per

Members New York Stock

Exchange

Members American Stock

Exchange

-Price
Dividend

Assets

Telephone: BArclay 7-3500
Teletype NY 1-1248-49

las,' TexaSj notes -in its May 15th
"Economic Letter"
that
gold is
_

,

/still leaving our monetary stock.
It points out that, "the Treas-r
monetary gold stock con-

tinues
Range—*»

1949

$55.60

$3.27

$426

$2.00

56.94

3.58

475

2.25

48%

4.05

468

2.50

503/4

45 3/4

60.21

4.35

490

2.63

59%

51 Vi

61.96

4.50

474

2.75

58

5oy4

19o4

63.76

4.68

514

2.88

09 y4

54

1955

64.83

4.90

511

3.00

81

69

1956

•

39y3

y4

65.81

1938

5.49

511

3.31

72

5.94

497

3.56

76y4;

In

this

for

2-for-I

6.26

decade

stock

535

book

split

In

value

1955.

3.75
~

...

93%

>

74^

increased

fictional.

n

g

the

of

about

$280,000,000

amount

withdrawn

last

sum

the

year

($2,275,000,000), and you can

understand

circles
.

-

"The,. T

stands

the

about

at

concern

our

r e a s u r

gold

in

some

reserves.

y's, gold

now

about: $20^50,000,000,

"Correction: "There
to

worried

earnings

93%;

:

thing else)
our

Bert

serve

25%

re¬

requirement against Feder-

Askern,

man, and yyye
mail

/-'ii

former

news-

recently a

executive with
Advertising Co.,
has
years,
joined Newburger, Loeb & Co. 15
Broad St., New York City, mem¬
advertising

Productive
New

York

change

the

growing distrust of

With Newberger, Loeb

bers of

support

a

dollar abroad/

which is almost twice the amount
to

about the stability of the
__

American dollar. Some Observers
persist in saying that oiir loss of
gold evidences (more than any-

needed

.

29%;

i

ending

since
January 1, this-year. Add to this

63%

70.71

"Adjusted

total

63

68.30

:

1957

ur

May 6, $75,000,000
worth left the country, making a

42%

58.48

1952

45y4

decline., D

to

week

Low-'

High

1950

/

as

The First National Bank in Dalr

ury's

Bell

Specialists in Bank Stocks

,

Share*

Invested

.

it; and it all would be just
.../
is nothing
worry
about, unless you are

name

,

".

1953

120 BROADWAY, NEW YORK 5, N Y.

Reserve 'J notes
and member-bank deposits). >V-'.

/:

dollar."

can

2.30

4.08

2.04

Operating
Earnings

outstanding

Federal

"Actually there is no real cause
since we are on nothing
a fictional gold standard any¬
Scoffing at the 25% gold reserve
ratio, Dallas bank says there is ~ way. There isn't anything sacred
about
the ^25%
ratio. ;Congress
no need to worry about the gold
set it more or less arbitrarily and
outrflow "unless you are worried r it can be changed just as arbitrar¬
about the stability of the Ameri- * ily to 10%, or 5%, or 1%—Or you

4

In the above government-maturity tabulation it. is evident

Ten-Year

liabilities

Reserve

(mostly

but

On securities

3.85%

'

Laird, Bisseil & Meeds

'

al

to worry,

1951

PREFERRED

On Our Gold Loss

ti20

V 96

:

x
7

?Due

years.

.

Securities Co.

Texas Bank Comments

5 to 10 years

Up to 5 years

91

/




}■

"

Trust; New
York, N.

that New York Trust has in recent years concentrated heavily on
short terms, on which there is a rapid roll-over.
./,'•■

COMMON

3*4

24,180,000

-—__—. —

Jackson County, 111.

$30,000,000
40,000,000

profits—

Dividend

375,045,181

2,936,699

and

Undiv.

1952

,

Bid %

100.302

,

Capital
Surplus

1953_

S.W.I

Rd.,

come

8

.

£&///;

Chicago, 111./i

1"

48,748,965

discounts-..

premises

liabilities

Interest

$384,909,179

obligations
Reserve

1952

London Branches:

Depts.:

York

>

basis):

and Grindlays Bank Ltd.

Trustee

New

y •

.

individual/

101/264

-

J-

_r

of

bank?.

from

due

Government

in

Other bonds

U.

bids for the

100.129

Liabilities:

Banking
Cust,

dollar

'

and

S.

submitted the following

;

Coupon %

the

Statement of Condition—December 31, 1958

excess

Amalgamating National Bank of India Lid,

13 ST. JAMES'S

4

•.

<•

There hre

Cash

54 PARL1A...^i

issues

$84,849,00, consisting of $30,000,000 capital, $40,000,000 surjjlus,
$14,849,000 undivided profits.

Stock

'U. i
The, group

submitted to the stockholders

Assets:

Thomas H. Quinn, President of
Inter-County" Title Guaranty &
Mortgage Company, has been

a

•

tion; Smith, Barney & Co.; Shields & Company; Goldman, Sachs
Co.; Harriman Ripley & Co., Incorporated; and R. W. Pressprich

and

Old Chatham Hunt Club

to

T;> ! *
' %
:
are The First Boston Corpora¬
V

&

outstanding 1,200,000 shares
suited
stock, $25 par value per share. This amount resulted from a 2-for-l
split in the shares in 1955. Capital funds ai the end of iuoo stood
\;apusi iunas at ine ena oi 1958 siooa

Reservations may be made with
D. Aws, Paine, Webber.

Waco, Texas, and ranges from a yield of 2.15%

The management slate prevailed by a heavy

for their consideration." %x

"

and

price of par to yield 3%%. /
Other managers of the .group

"Certain banks have expressed interest in merging
It is the intention of the management to
explore this interest. If a specific proposal should result which the

Kenneth

.

Bayonne, N. J.; Edison Township, N.'J.j Lorain, Ohio; Puerto Rico;

with the trust company.

Boating: J, Dan McCarthy.

Fla,; Columbus, lGa;; Jackson County, 111.; Lake

Charles, La.; Mount Clemens, Mich.; Las Vegas, Nev.; Reno, Nev.;

stated in part:

L.

Bank, Minneapolis, and Paul E.
Matsche, Paine, Webber, Jackson
& Curtis, St. Paul.

i

Fort Lauderdale,

representation on: the

sought

management

present

f

Scale D applies to issues of housing agencies in Putnam, Conn/, /

majority of share votes. The opposition group was believed to
favor negotiations looking toward a merger of New York Trust
with some other banks. On this subject the 1957 annual report

Molander, Northwestern National

Jackson &

98% for a
98 Mi. for a

company's annual meeting this year a group in opposi¬

the

to

1

of housing agencies in Chicago and
City, ranges in yields from 2.15% to a dollar price of
vield of about 3.825%:
' ' '• ^X'-T
yield of about 3.825%; r" 1

&

board of directors.

.

"

1954

tion

•••

Special Prizes: John A. Galla¬
gher, Smith, Barney & Co., Min¬
neapolis.
V

Prize

At the

y

Scale C, covering bonds

of income. For example,
in 1958, this portion of the business produced some 61% of total
gross; while interest and dividends on securities brought 20%,and fiduciary fees, etc., 19%.

Prizes:

"'.-I'

'

-V,-

■'

B;

2.15% to
New York

the most important source

are

•

being, reoffered to the public in three price »,
3%%; Scale* C, 3%%> and- Scale D, 3Ts>J%—at
prices to yield 2.15% to a dollar price of 100 for a yield of 3%%.; ?
Scale B relates to bonds of agencies in1 Clinton, Mass., Durham
and Raleigh, N. C., and 'Dayton^ Ohio, and ranges in yields from

6,400 shareholders.
Loans

^

,issued
l^o^l hOTOing^enei^ to
"ted in 1" S.ates ang Buerto K>co. Tney^^weie award^ the group
i
?
over-all.net interest eost.of 3.8711%
scales—Scale

with deposits of approximately $2,300,000,;
New York Trust Company has reen this item grow to $891,732,000
at the end of 1953; and at that date total assets grossed $1,001,086,000. The bank has been fortunate in having over its history a group of highly influential members on its Board of Directors.
It derived a good portion of its income from the wholesaling of
credit, but every effort is made to cultivate smaller business ac¬
counts.
This has had the effect of keeping down overhead and
enabling the bank to operate with a relatively small staff. It is
regarded as one of the more compact of New York's large banks.
The headquarters are in the Wall Street district, with six branches
in midtown Manhattan, each strategically located in an important
business area.
There are about 1,265 employees; approximately

Borin, National Securities & Re¬
search Corporation, Minneapolis.

v

by Phelps/ Fenn & Co., Lehman
in association; with The First Na-

t0 th/age"Jlds; are
' '
The bonds

1889

in

Starting

olis, and
Hubert G. Fergeson,
Blyth & Co., Inc., Minneapolis.
Tennis &" Horseshoes: Leigh ton

olis.

managed

and ^ Chase ManhatokBanle.
; ,

made.

importance to the trust activities was

siderable

Entertainment: Charles J. Rieger, Merrill Lynch, Pierce, Fenner

;

group;.!

Brothers and Blyth & Co./Inc.

•

•

-

-

-

-

-

;

Golf:

underwriting

;

Company, and in 1904

adopted. A merger with Liberty National Bank was effected in
1921. Liberty National, primarily a commercial institution, had
in;
1919 acquired Scandinavian Trust Company, which brought an'
excellently equipped foreign department to the ultimate consoli- "
dation.
The original New York Trust Company had built up a
J
substantial corporate and personal trust business.
Then in 1949
the Fulton Trust Company was acquired, and an addition of con- *

Registration: Robert S. McNaghten,
Williams-McNaghten
Co.,
Minneapolis.
>•
Cocktail Party: Richard Brown,
Halsey, Stuart & Co., Minneapolis,
f
Publicity: Stanley R. Manske,
First National Bank, St. Paul.
Transportation: Clifford S. Ashmun, Jr., C. S. Ashmun Company,
Minneapolis.
I

;

Nationwide Syndicate

Public offering of $104,760,000 New Housing Authority 3%%'.
and 3%% Bonds due serially 1960-2000 was made May "26 by-ah ;

are:

Shaughnessy, Jr., Shaughnessy &
Company, Inc., St. Paul.

Smith

organization.
1889 as New York Security v
Continental Trust Company, char-

well integrated banking

a

& Trust

;

.

/

The company started business in

the

General Chairman: Lawrence E.

&

Offered by

attain mere ;

component institution served to bring to New York /
Trust its specialized branches of the banking business, and resulted o
Each

size.

Nicollet Hotel.
?

during its history was made to

None of the mergers

Shaughnessy & Company, Inc., of
St. Paul, and by a cocktail party

•

-

$104,760,000 New Housing Authority Bonds

York Trust Company is 1 he outgrowth of *•
until 1921, and another in 1949.

present New

is selling atvpresent' at:

Hi-

COMPANY

TRUST

YORK

The

luncheon for guests at the
Town and
Country Club, given
by

°n the, year-end book value.
The stock,
about 14Vz times 1958 operating earnings.

•a

By ARTHUR B. WALLACE

tative.

Mail
for

nine

the New York
as

"

a

Stock Ex¬

Registered Represen¬
"

"

,v

'

"

"

,

*.

iVolume

Number 5850

188

Continued

from

.

.

.

The Commercial and Financial Chronicle

rigid and higher prices it
tended to curb/
: ,Y
■

3

page

(2435)

is in¬

.

.

Third,

this bill would impede
prompt price reflexes to changing,
.market stimulH-'The result might
well
be
to
disadvantage those
very '; producers
responsible
for
whatever
price flexibility some
.

.

concentrated

this Department oppose enactment
>of

:'this*measure?
r

.

-;'r

?

Recommend

Against Enactment

of,pr.opiise for complete

*

quiry into'"the;

thefjustifiability pf
for

crease

our

Cabinet

~

the

Committee

problems

Specifically,

the

sion

looked

into

first,

could

antitrust

of

two

be

used

as

Divi¬

the

of
an

such

ef¬

of tomorrow

and

new

growing industries

anti-inflation oriented?

smelter.

tion

Unlike the producers, he

operates
the

Recommended, and some al-

•miners

conclusion

antitrust
some

law

was

v

enforcement

limitations

as

an

not

that while

..

for

for the copper and the time
.needed for smelting and sale. ,To
avoid the risk of/inventory -specu¬
lation and to safeguard its proc¬
pays

.

competi¬

stem from increases in costs. How-

anti-infla¬

competition should help keep
prices roughly in line with costs.

instrument, there are areas
the margin between where enforcement, if coordinated
paid; to independent with a government-wide anti-in¬
metal and the price flation program, can serve as one

tween the time the custom smelter

that, 'at
offer no
adjustments,- this proposaF/eould /promise of, early or even .ultimate
; spelbireafe.antirCompetttiy^epnse^iWl^ > in ^any., particular; area,

;public hearing; Third;'by slowingNt%ough capdor requires
; the. necessarily*f-ast pace- of pricei t&M5 stage;.5>f:our W9$e> J-

market be deemed

a

tive, increases in price may well

has

on,

price

*

Our

of

effective arm.
prices set in response** to? free1- ,r9ft^-:a9ted upon by this Commit- obtained for the refined copper.
The custom smelter buys from
market forces. Second* -one result^f^i«.>^,}Hti-.w.^^n the framework
On the
one
hand, Antitrust's
will be to discourage price ;.der - coexisting,, Jaw, r^ve. currently hundreds of miners on the basis limitations
as
an
anti-inflation
of the price of copper on the date
clines; forjcompanies may -well be: PVejf intensive inquiries into many
weapon stem from a number of
; the
ore ;arrivea jatthe*; smelter.
loathe;; to * risk price' cut s/ when*
i the
* bmrket
sectors—for
factors. Fiost is the insulation of
However, over 90 days elapse be¬ significant sectors of the economy

,

Effective Section 7

enforcement today will

bring sup¬
ply, demand and price into a more
questions, ready competitive relationship in

enforcement

laws

to

inflation.

Antitrust

fective instrument

the

.andw<5^'s'hu^ress antitrust tools,
anyprice■.irir;^P.?c?^. legislative proposals have

traditionail ideal of/.

concentration.

study

of production and
selling price of refined cop¬
per. However, a significant com¬
petitive
factor,
is
the
custom

success

for

reasons

informal

tween the cost

Equally true, however, absence

Of S. 215?

r

;;

dem¬

evolution, can shape the ultimate
competitive structure of these in¬
dustries and avoid the expansion
of those areas weakened by undue

as chemicals, plastics,
public pol¬ and electronics.
icy in combating inflation? And,
I do not mean to suggest that
from mining to the finished metal second, if enforcement could be
competition can—or should—curb
and operate on the margin be¬ so utilized, how could it best be all
increases in price. Whether or

.ought,'not diminish our striving
;
.Our position may be capsuled at ^9?/the ideal,. the Seal of unrethe outset.
First, the bill wouldr.i^M^lhed..individual, eftort at -the
tend to substitute Government in-,
-<fe?lJr.- competitive market

)
■

V..v

now

."

the Attorney General since early
last Fall when he served on an

Copper is a good example. In¬
tegrated producers run the gamut

Cures the Symptom Only

Why Does the Justice Department

'/

:

.

in

i-

.

markets

onstrate. :

ultimately thwart, effective
antitrust remedy.
^
'•

even

S. 215 is directed? This is a matter
which has absorbed the interest of

31

from the

jurisdiction of the Fed¬
eral
antitrust
laws
by
specific
Congressional exemption, or judi¬
cial construction.
Second, com¬

,

ever,

For

one

example, consider our
litigation blocking the
Bethlehem-Youngstown steel
merger. In the trial of that case,
independent wire rope fabricators
successful

testified
since

they

were

they had to

"squeezed"

higher and
higher prices for the rope wire
they purchased from the big inte¬
grated steel companies. But the
pay

market for wire Tope was

highly

competitive and prices could not
be

increased.

To

make

matters

paratively limited resources are worse, these small independents
essing profit; th&; custom smelter available for antitrust enforce¬ were forced to compete with the
each day aft' amount of re¬ ment.
And, third, anti-monopoly integrated steel companies who
fined copper equal
copper re¬ enforcement under Section 2 of are their source of supply.
As
sells

would-be:; ielt,- <n6t' iri^narrowlycompetitive
goal; we must. ceived/at its smelteri^ ' ^ v* " •- the Sherman Act makes protracted Judge Weinfeld pointed out:
; *
Accordingly, "toffuriction;teffec- litigation inescapable and shortmarke«i;but>ureas^bur throughout .^necessarily, ^fall—is#ie/asserted
if the independent sells
the;bulk of this nation's economy.^reipedy.
wire rope below his
bill?-proposes truly | tively, the custom smelter must term results difficult to predict.
competitor
be free to adjust his selling price
Let me detail the basis ,for these ■••wort^.it^'^o^ ;KfJ^
f:
supplier's price for wire rope he
Illegal Restraints
Conclusions.
:
V
■ .,;.:;
may
lose his source of supply,
>H Espeeially» so, since second, if quickly. ** Highlighting this need
for price flexibility, though the
•; On the other hand, antitrust en¬ thus giving his supplier a form
i*:0
^
the'persistent failure of post-Conprice
of forcement can achieve prompt and of price control over
?
.Sacrifices Market Forces - ^ gressional admonitions against integrated • producers'
him; and ..'.
-electrolytic copper changed only effective short-term results in the the
v
opportunities
for
a
•'iFirst,' the*bill's' tendency.icr sub-* ./price• hikes be a guide, this bill
price
three times in 1958, the custom easing
of upward pressures on squeeze on the independent are
smelters'
p rice,
in
contrast, prices. Relevant here are cases enhanced, since the supplier
may
changed 36 times, fluctuating be¬ attacking illegal price restraints shift his profit between rope wire
trdst's prime* goal, as the Supreme, pricing influence from market re- tween a low of 23 cents and, a of trade which induce inflationary and wire rope in such a manner
j .. effects. Enforcement of this char¬ as to narrow or eliminate the in¬
Court put it, in Socony-Vacuum- actionfo interested groups' hear- high of 30 cents a pound. 15
Such custom
smelters' opera¬ acter can be expeditiously pro¬ dependent's
margin of profit on
; is to insure the determination of ing -views '"could well encourage
tions would be dealt a body blow cured under, criminal and civil wire
rope. As to this latter dis¬
.V* yt' prices by free competition - that persistent upward push of
by S. 215's 30-day notification re¬ procedures. Effective remedies can
advantage, for several years prior
; alone. io xhe fact that prices are,* prices/the bill seems to halt. For
However,
the
pro- produce
immediate results in to the trial and at the time of the
fixed ; at the fair going; market a business concern may be loathe quirement;
elimination of the illegal trial
/ducers—whose prices presumably the
(just a year ago) the price
price is immaterial, n for?.the rea- 3to cut prices if certain of the rereflect the kind of price behavior
of rope wire (the raw
sonableness- of prices has-no con- j quirement that, should the price
restraints.,.^ ,
v
material)
lat which,S. 215 appears to be di¬
For/; example, consider United had been raised several times,
stancy due to the dynamic quality v cut not spell anticipated benefits,
rected—would not be adversely
States v. Beatrice Food Company while the price of wire rope (the
; of business* facts underlying price any"'"future fise
would have to
;
/, et
structures. .12 The difference be-. -Jace a 30-day. waiting period plus affectedv; k, ;
akriD.C^eb.), a criminal suit ultimate product) remained vir¬
'• .W-v
involving milk sales to govern¬ tually constant." In effect the steel
tween legal- and
illegal conduct ithe travail of public hearing.
/ .Would Hit One-Half of All , ment installations. Immediately producers raised the price of the
in the field of business relations,i 'srl -...V >/•/(
•
•
:
~
v
;
Commerce
after that investigation got under raw material sold to the inde¬
the 'Supreme Court concluded in,
•>
;iCites< £rice Cuts '
; ' -Finally, the maleffects flowing way, defendant dairies customarily pendent fabricators, but did not
Trenton Potteries,cannot; depends v,yj
.fate some examples. The
bidding on these contracts reduced raise the price of the ultimate
upon. so
uncertain ^ a test /; on- producers'bf- tin cans have in re- from this bill would be felt, not
in limited mark e t sectors, but the price to the government in¬
product which some of the pro¬
whether prices are reasonable—a
rc^n^ months reduced their prices."
throughout our nation's economy. stallations to a level comparable ducers, including Bethlehem, sold
; determinationnvhich can.be ,satis- - Query- Were S. 215 enacted/would
in
with the price offered other pub¬
competition with the inde¬
S.
215's "scope may perhaps be
faetofily made only after a comr these price reductions have been
gauged from statistics published lic institutions in the area. In ad¬ pendents. -The evidence estab¬
plete - survey of., ouh .economic -vvittiheld because, should can pro-;
in this subcommittee's 1957 report dition, they began to quote prices lishes that the independents were
organization and a choice betweenQueers wish-to raise their prices
competitive with each other. These caught in a price squeeze. (United
on Concentration in American In¬
rival philosophies, ■'%
• date,.
they would' be
already been ob¬ States v. Bethlehem Steel Corpo¬
dustry.-. Assume for the moment results have
?< However, it is on just this issue h*equired: to notify the FTC and be
that
S.
215's phrasing "line of tained—even before the case has ration, 168 F Supp. 576, 612-13
:• of any price increase's-reasonable-- subject to a'
commerce" be deemed the rough been tried.
(1958)."
/
*

...

...

.

.

-

,

•.

.

_

.

;

.

:

.

t

fujjyiearing?

or> as* ®\2A?
; .^a^ns
an
of the proposed increase

h^'ss

Much the same query arises in equivalent of the concept "product
tha t" ■ the
base j;of reprocessed cheese, classes" utilized in your Concen¬

J

■r

this

.

n

required. mqu

measure s

-

.ar _where.' eight ' companies account
^

SCUF- T-1Ue'

bdlenablesnoGovernmentag^
to nalt—beyond the requmed

:

for* ^3% 0f industry shipments.
The price 'of Cheddar cheese, ac-

_

'

y

cording,to the Bureau of Labor
30-^."'statistics; fell from 94.9 (1947auhl„~ 1949 equals 100) in August, 1957

peilod
deemed unreasonab . to 87.5,in April, 1958. By Novem-.
^.-Equally true, however, the. bills
ber> ^953^ me price had risen back
day

,

waiting

price

.

rises

-required

mto

inquiry

aiy

p

price
subjected
provisions of S. 215. Yet,

91.5.

to

justifiability makes sn14.
giPPint unless that interested g
p
Reaction which the niqun-y should
jifeflect is meant to influence \ i;5jses

ris0

'

dividual

concerns

dec

nQ

sooner

raised

-

the

reaction via hearings—
o^rather than the ebb and flow of

but

ne^t

this interestea agairi

it is

-And

fi;?ions.

pricing

have

had
in

1

been

the

price

December,

jpon^

redUCed.

groups

.

that

Presw^ably,

wouid

|

—

prices

J

been

1958—
were

/

For a final |xample, copsider
^buyers
pressures • reflected,, via tomato catsup, affield v/here eight
; markets—^which would mold busicompanies accodnt for 68% of inness pricing decisions.
dustry - shipmeigs. These prices
•in True; of course, assumed here
^ec'med
1K7 to
f is that market pressures are—or
APrin l9od, mg weie raiseci to
»

froa^Augusi,

-ian

another peak «. November 1958,
True, in some only again tow$gfeHne in January,
economy, prices 1959"
|.

be—sufficiently virile to mold

/price

decisions.

r

areas

of today's

i

seem

to

response
cies

of

in

move

hardly

direct

Query: In sudh instances, would

to the apparent exigenmarket
demands. And,

nof

finally, it is true that even where
such
price movements may be
felt to stem from collusion, undue
„-!qompetitive restraint, or excessive
^individual / p<nver over market
tv,price, still accidents of precedent
7 fand proof may delay, and perhaps
'

.

4'

3i0°!?'s

ise*

zzz*n

-

n id.

at

Cn

nn

c

223.

> -is id. at 22i-

'

.

u 1|l/392 V396-98t0n
°



'

■

Report.

Lilly

One

of

1,118

of

more

than $10 million,

worth

this bill's

price - waiting and hearing re¬
quirements would apply to indus¬
tries
accounting for more than
one-half of this country's com¬
merce.

merger was that Youngstown was

retained

important nonof supply of raw
independent fabrica¬
tors.
To that extent, the squeeze
on
the small independents was

houses of average size by

much for our objections

to
of

IV

toward

Thus, our efforts in this field
spell real results. The more
responsive prices are to competi¬
tive
forces, the more effective
will be normal anti-inflationary
weapons—such as monetary and
fiscal
controls.
Thus,
effective
antitrust

sense, S. 215

could spur the very

14

ment

TNEX, Part 25, January
13266-13268.
Daily Metal Reporter, Jan, 16, 1959,

II,

p.

Metal

115.

1

and

Steel

Number,

Part

an

over-all Gov¬

program

And it is toward

work is

now

directed.

$100 per

alleged

Form

re¬

Employees Mutual

Charles S. Janow is engaging in
a

at

securities business from offices
Mount Hope Place, New
City, under the firm name
Mutual Investment

215

York

of Employees

the long-term

Clubs Co.

as

an

anti-inflation weapon,

Form First City Sees.
First

16 U.
of

S.

v.

Concrete

Criminal

Officers

in

a

are

with

offices

at

has
37

New York City, to

securities business.
Maxwell

Mangold,

President and Treasurer, and Hal

(D.
.

Mass.)

Street,

engage

Form Association

No., 57-63-5

formed

Wall

Central New England, et al., Civ. No.

57-216-S;

City Securities, Inc.

been

Hearings

Annual

aid

against infla¬
stepping up
the pace of such efforts that our

tion.

effectiveness of antitrust enforce¬

1940, pp.
15

can

ernment

Uniform

Section 7 of the Clayton Act offers
tion, would be subject to waiting
In sum, apart from the pending
and hearings? And, as a corol- proposal, what if any contribution significant potentialities. Vigorous
iary? would the necessity for wait- can antitrust make to meeting the Section 7 enforcement, particu¬
jng and public hearings likely problem of inflation at which larly in the growth of infant in¬
dustries in the early stages of their
tend to magnify each price rise in

procedures for each of a series of
smaller rises? * Thus,
in a" real

to

may

permitted contractors
cut costs and the ultimate price
new dwellings to the buyer by
least $100 per unit.

Looking

Program to Curb Inflation

the

source

held in check.

straints and

at

Antitrust's Role in an Overall

material

unit. Successful conclusion of this

eliminated

an

as

competing

prices had been fixed which had
caused
an
increase in
building
contractors' costs on dwelling

case

to
this measure and our views as to
the maleffects it would engender.
So

cement foundations.^

salutary results of

our

manufacturing

in such industries has a net

the

of

successful intervention to pre¬
vent the Bethlehem-Youngstown

&

Thus

in¬ ate prices are currently quoted by
dustries there listed would fall the producers revealing charac¬
within S. 215's requirements.
In teristics of competitive price be¬
other words, this subcommittee's havior.
report indicates that eight compa¬
And, finally, in the field of
nies account for 50% or more of housing, a very important factor
the shipments in over half the in the cost of living, the Govern¬
manufacturing industries in the ment early in 1957 filed a civil
United States. To be exact, these complaint and criminal indictment
632 industries number 56% of the
against the Association of Spe¬
total and account for 55.6% of the cialty Contractors in New Eng¬
total value of shipments in all land". Such contractors erect shells
manufacturing. Thus, to the extent for, dwelling house foundations
that each of the leading eight firms and supervise the pouring of the
total

cuts were the knowledge certain
that
future' prices,
unless exempted at administrative discre-

" order to avoid the rigors of such

*

-

most concerns tend to shun
tentative and probing price

Similarly, in United States v. Eli

Company, et al. (Cr. D.
N. J.), the price of polio vaccine
viewed, that Report's statistics revealed a marked decline follow¬
suggest that some 632 out of a ing indictment. Here, too, dispar¬
Statistics

tration

Harold, Secretary.

22

The Commercial and Financial Chronicle

(2436)

Continued from

first

be

See It
'lion
-

than

^ffewafteirnath.-;~
v/

more

«.•

early postwar years. They amounted to
$12 billion as late as the end of 1950.
assets, too, were relatively much larger in those
little

a

Cash

Continued from

over

first

.

<

Different

,

Financial Market Trends

Today

in Our National

picture is quite different today. It is much more
that which induced the higher interest rates late

.

;

in

forget that only a little over a
year ago there was deep gloom in

at the end of 1950. For various and

|

reasons,

outlook.

of

ing busines economists early last
Spring in which the gloom was
particularly thick — even to the
point of some members of the
group suggesting that unless mas-

mostly rather obvious

bankers have grown to regard governments, what¬
"liquid," and to measure the liquidity

their

sive

of analysis has led some observers to fore; see what they term a "capital shortage" if, as they expect,
a continued
expansion in business takes place in the
v
months to come. Many in studying this situation content
/. themselves with a study of the probable course of inter¬
est rates and bond prices. Others, notably business execu¬
tives who expect to need funds for expansion or to finance
a growing volume of business in the months to come,

ing, and
of

-

active

credit

of

ease

the

1953

Fortunately for the country the
Federal

resisted

Government

the

"crash program" advocated by

the

nessirnists
Instead
pessimists. Instead, agencies such
agencies siich
as the Federal Reserve, the U. S.

doubtless in terms of difficulties to be over-'

and of the cost of

Federal Reserve policy

a

vintage.

,

come

by the Federal Government
depression of the 1930-32

cuts, huge Federal deficit spend¬

'

think of it

were

intensity would be upon us. The
prescription of these prophets of
doom was substantial Federal tax

This type

-

measures

another

btnks must be regarded as fairly
their reserve position may be.

any such measure the
well loaned up whatever

emergency

taken

position by adding governments to cash assets.

By

'

meeting of the nation's outstand-

their term, as

ever

quarters about the business
I recall, in particular, a

many

governments, some $99

President's
the Presidents

anrl

Treacurv

the

and

Trtasuiy

Council of Economic Advisers

doing things that they have been

tained

managers among the politicians are
moved to wonder how it is going to be possible for them

faith

the

in

re¬

resiliency

of

planning. Economic

•

;

:

market forces.

to

•

flationary pressures were only
temporarily submerged, the au¬

steady and rapid rate of growth in the busiof the country. The situation of which the figures

assure

tiess

and facts

which
'

a

already cited

concerns

A much

us

are

thorities
lest

all.

of the basic nature of the state
by which we are faced can be had if we turn
our backs for the moment upon banking statistics and all
V the other figures through which the situation makes itself
v evident. The
underlying forces at work here are beyond
the control of the reserve authorities, and are not ame<
liable to control by politicians or by the men who operate
the banks of the country. It is not merely a matter of
money supply as so many easy reasoners seem to suppose.
I It is at bottom not simply a shortage in the supply of
surer

grasp

this

of affairs

••

Convinced that in¬

moved to take

were

care

in

combatting the recession
they lay the groundwork for an¬
other surge of inflationary rise in
the" general price level. It was for

but the symptoms is really one

reason

that

resisted,

were

tax

cuts

though a huge
developed inevitresult of the recession,
even

Federal

deficit

ably

,,

Federal

a

It

as

also for this

was

Federal

cautiously into
ease

than

mu

i

that the

moved

move

a policy of credit
the case in 1953.

was
*

The

reason

Reserve

•

outcome

„i

well-known

IS

x

to

-

The recession proved to be
of modest proportions and of short
many.

midst of

business rebound.

The Real Trouble
The real trouble is the

produce and how much

tional

Product

which

relationship between what

we

produce and what

we

we

sion

insist

first

had

low

The Gross Na-

of

the

declined

country,
its

to

reces-

of

$429 billion in the
quarter of 1958, has risen

having in the form of goods and services—or, per¬
haps, we should say try to insist upon having. Nothing is
to
be gained by demanding more automobiles, more
houses, more of all the other good things of life than we
can
or
are
willing to produce. Except for very short

over $460 billion in the
quarter of this year. These
figures are expressed in terms of

periods of time, that

ments,

steadily to

upon

the

can

first

1958

we want, moreover, entails the diversion
much labor and materials to the
production of

in

Economy
\1

-

qf

1958

enough left to prepare for production
competition obliges producers to keep
abreast of technology if
they can. For such purposes funds
in large amounts are
required. If at the same time con¬
sumers demand funds in
large amounts to finance their ^
purchases of finished goods, severe competition develops
In the money markets and interest rates
rise—unless, of
course, the politician then finds it profitable to
step in
with schemes for
arbitrary creation of the funds demanded.
.

,

importance to take note of the fact
that such creation of funds whether
by this or that agency
does nothing to
produce the goods and services that are
being demanded. It merely increases the volume of funds
that may be spent
upon goods and services. There can be

in early

and let them be

one way

purchased by the proceeds of that pro-




there on the rate of business inventory liquidation steadily declined to about $1.0 billion in the
final quarter of 1958. In the first
quarter of this' year
non-farm
business

concerns

accumulated in-

S
de-

-J,i,

developments
year in the finan¬

virtually uninter¬
from
early
1955

and

r

rise

through

steeply
fumn.

business

concerns

ventories at

an

accumulated in-

annual rate

of

$3

billion,> and with the prospect of a
-y
;cpumu.

steei stI?„e

j

.™

accumu

latlOn Will Undoubtedly go much
_n ^ current quarter,
Thus, from the first" quarter of
1958 through the first quarter of
hjgher

this year we have had a

swing of

$12 billion in the annual rate
inventory accumulation, and this has been a powerful
over

of

business

third big factor has been

a

the sharp rise
dential

:n

non-farm resi-

expenditures,

which

in-

creased from an annual rate of
about $16 billion in the second
quarter of 1958 to $21.7 billion in

the

v;e]ds

bond

Au¬

early

illus-

to

serves

£ra£e wbat happened to long-term
generally

t
.

AAA

which

t

mid-Novem-

vield

average

corporates

decline
-t

In

the*

ig57

stood
it

noint

began

on

4.13$;

at

sham

a

By late February of 1958

had

dropped to 3 58> a decline
nearly three-quarters of 1% in

o£

three months. It fluctuated around
...

,

4n(«

'

...

.

-

From

earlier.

1Q58

to
Pv

DOint at which the

same

P01"t

started

declme

T

,

abruptly

miH-Ortnhpr

.

-

S 3e

*

fh

climbed

then

and

about

wl"leh, ™
a

.year

mid-October,, 1958
1959

the

average

^ fluctuated
level, but in April

^e^^ca™^ther' riSG

ea^ almost identical
An tbls ™0P,th\.-

4.30%

pattern

was

pdueni was
traced during this period by the

..

vjeid

-avei.age

long-term

on

gov-

dveidse yiexirim long lexill goy
ernment bonds, and the move-

yields,on high-grade state
and local government issues was
sim.^ar in nature. The amplitude
of tbe movement was even more
spectacular in the case of new issues of, corporate securities.
What

force for recovery.

Still

precipitously

The behavior of Corporate

AAA

liquidation steadily
thrfmeh March
clined to about $1.0 billion in the
AAA
'
final quarter of 1958. In the first'yie*d
^
Q
quater
of
this
yearnon-farm around the 4.13
ventory

were

the forces operating

Produce the sharp decline of

long-term
1957 and

interest

rates

late

in

early 1958? What halted

the decline? And what caused the

beginning

rise

sharp

last

Sum-

0&7
1957

in interest rates in late

coin¬

the first quarter of 1959.
The
marked step-up /in housing has

cided with the reversal in Federal

been,

of

Reserve policy in the direction of

readily available financing

credit ease, as evidence of the

of

more

the

as

?V f

course,

demand
•

,1

the

for

product

hn«;inp<;<?

and

i VJ S5?

ln-

,

.

business recession became
Ac
As

ent.

•

industrial loans declined. The

was

TVrfpral
Federal

appar-

rTnlirv
policy

Reserve
Reserve

directed toward greater credit

Jut related provided the stimulus
it has
for

would go "all out" and repeat the

consumer

vei7

„

.....

spending for durable
goods and community

which

±acinties.

Up"to"this

I'L

peak

to the

•

This

previous

1957, and

was

credit

ease
in

followed

policy

the

gjf''xhe ^pectatiln

last

IS

industry

purchases of goods and services
rose from an annual rate of $49

nearly $55 billion
year.

quarter of this

in

the

Also,

a.s the result of Federal
Reservecountry the money supply
policy,
of the
(demand deposits
adjusted and currency outside the
banks) rose about $5 billion be-

oteoly with jan"?ry. and August 1958,
tWf;n continuing more moderate

The recovery

absorbing

active

point I have set forth
was
™Portant factors in the recovery th commercial banks armed
with
which have originated mainly m rpqprvpt. wollid hid i n the nrires
the private sectors of the econf bnnd'
n<5
+bp volume of bank
omy. There is no doubt that
gov-and
deernment policy actions also played f.nnpd in tbp rpY>p«inn
Thnq
it
a highly important role. For exrlea/that the sharD droD
ample, total Federal Government t
long-term interest rates in late

a

rise of nearly $2.5 billion through
is

"2
emnlovment
ratpy
d°ubt+ that F?deral spending and
from
hfeb of 7 6* of the law mo^c^y. P01!0^ contributed to
win August 1958
,lubricated *he recovery, but
A^fi of Sl iS adTrinS I eh<LVe tha} thu priI?u movers
has been the fact that ritiring the
VG bfen elsewhere than govpast year we W experiencld
* P
Y 3 °nS'
amazing stability in the iSdlx of
As we reYiew the developments
ccmlumer prices and in -the index in x°ur na?ional economy in the
owXa^
of wholesale
?as the
year, it seems very fortunate
commodity prices.
that
government did not
a

an

,

•

1Qc7

^„d

iar«Piv

pariv

'the

iqko

investor

on

basea

wa<.

exnectations

monetary

authorities

WOuld move toward

a very easy
dit „olicv and that investment

outlets

would

be

sharply

cur.

i

tailed as business reCeded,
Forces Halting the Decline
A

n1]mupr of forrec; ooerated

v

to

halt the decilne and then stabUi7P

intorost

rates

from

Mareh

throuEhJuneoflasrvearand
then to bring about the

ab^t

rise through October. One of the
most important factors was that
during the first half o{ 1958 in.
deed throughout the year, the demand for long-term corporate fi-

nancing-some of it refunding of
short-term bank debt — held Up
surprisingly well for a recession

period.

During the first half of

press. 1958 the total new

Business

What

Revival

were

the

the

Forces

factors .of

strength which led to and facilitated the general business recov*

cry?
to

First and foremost, it seems
is the fact that consumer

me,

confidence
.

all want—-

,

us

It is of the utmost

we

lies in the field of business inventories. By the first quarter of
1958, as the recession proceeded,
non-farm
business
inventories'
were being liquidated at an annual rate of $.9.3 billion
F

°!
I J
indi- first

March, 1959.

has been rather slow in

in the future. But

things

ivf
m

147

show further

consumed and not

of the

to
to

ffthlf gam.

"shortage of capital" could better be described
as an
inadequate rate of saving—which is but another
way of saying too much of the current output is being

more

key

all-time

Our

produce

.

a

figure carries

line.

f >2? result—higher and higher prices. There is

.

^e«io^Slow° of ,9? -fr°4 f Primal'i]y

and to prepare to produce more than we are
ready
willing to produce—and it is made possible by arbi¬
trary creation of credit or "money" somewhere along the

©ut. That is to

seasonally adjusted, have
steadily from $347.5 billion
February, 1958 to $368.6 billion

S / ,.^S production,
^.B/ard
dustrial

more

s

in early 1958, then levelled out
until Summer, and then rose again

have climbed again from an annual rate oi $286 billion m the
first quarter of 1958 to a rate of
$300 billion in the first quarter ol
this year. A second big factor

ilfSrve pifa^eaind?'he ?ed~

and

'

The GNP for the first

risen

of

things with
which to make the
things we want. The phenomenon so
often termed "inflation" is caused
by an attempt to have

.

prices

quarter of this year is the highest
on record.
Personal income pay-

not be done. The production of

things

■

creased rate of housing expendiease, the expectation quickly de¬
and we are now in the kires
has nc>t only exerted a
veloped in the financial market
a thoroughly satisfactory
strong lorce for recovery itself, that the monetary authorities

duration

credit available to borrowers in and out of business.

1

„

,

through late 1957, long-term in¬

.

to

billion in loans and
nearly $21 billion in securities other than governments,
while cash assets were very little larger than they were
billion

;

steady

-

rupted

■

in 1956 and early 1957. At the end of March, the latest
date for which full figures for all the commercial banks
are available/ these institutions held a little less than $63

:

......

to

terest rates declined

The

akin to

,,

cial markets, one of. the most in¬
teresting has been the movement
of long-term interest rates.
After

page

a

early postwar days./,

,

Developments;;;;,
Turning now
during the past

salvation.

governments, too,

v.....

.

Past Year's Financial

low in the

were

only
-

other

Securities

loans.

in

Thursday, May 28, 1959

.

difficult inflationary problems in

consumers would in that degree
fully met and the need, or apparent need, to
borrow to satisfy wants would in that degree disappear.
Hardly a popular remedy, but / about our

duction. Thus demands of

page

,

was

well

maintained

through the recession and into the
recovery period.
Personal consumption
expenditures
levelled
/Off-a bit in the recession, but they

panic button and rush into

massive program

a

of tax cuts and

very easy credit to combat the
business downturn.
Faith in the

long-term corporate capital issues amounted to

$5.8 billion, as compared with $6.6
billion in the first half of 1857,

a
period of heavy corporate firecuperative powers of nancing.
A second very importour free market economy seems— ant factor was that as interest

natural

at least

on

this occasion—to have

been thoroughly justified. It now
seems certain that a massive pro-

rates

on

corporate bonds declined,
as life

institutional investors such

gram of government action would
have been much too strong medi-

insurance companies and savings
banks shifted the emphasis of
their investments to the residen-

cine

tial mortgage market,

and

would

have, .produced

and

espe-

Volume 189

tne

net

Number 5850

by

The Commercial and Financial Chronicle

.

/nortgages where and equipment expenditures

yields

matched

:

.

became

demand

a

hous-

for

as

maturities, the yield pattern shows

business recovery comes into full

attractive

higher rates in the short maturi-

investors

and

as

such

their

pur-

ing, thus leading to the stimula-

chases

tion

significant development in
financing in the past year

produce an increase of the money
supply. If they proceed to liquidate their holdings of govern-

of

residential

noted earlier.
of

construction

Moreover, the flow

investment

funds

from

away

remove

downward

some

pressure

in

corporate

on

bond yields.
These

the

were

basic

demand

and

supply forces operating in the
long-term capital market which
held

long-term rates stable and
which
ultimately
would
have
nroduced

rise

a

However

the

sharp rise of interest rates beginning in late June of last year can
traced

in

particular to the
bursting of the bubble of speculatibn in government bonds which
took place at that time. As noted
nn

vil

/-\v»

i

earlier,

the

financial

in

market

early 1958 developed the expectation that bond prices were bound
to rise and yields to decline dur-

ing the recession

as the result of
credit policy. It was this
expectation that led to the heavy
speculation on credit in govern-

an

easy

•

,

.

...

,

...

,,

ment securities (specifically the
2%s of June, 1965) in mid-1958,
When
the
speculative
bubble

burst, the decline in government
bond

prices set in motion a rise
of yields which was based on a
sober view of the prospects

more

for

monetary

the

policy, as well as
demand for capital

strong

funds

from

industry, residential
and Federal, state
and local government.

construction,

This changed investor psvchologv

governments

ti6ldS ln 016 b°nd of the crease .If eV1n jf they
mfa''iet mentS' them further
to

acted

be

of

strengthened

was

when

the

its first

Federal

move

in

August

Reserve

back in the

made

direc

July-December

not

do

Federal
is

the

has

ury

which the Treas¬

progress

made

toward

a

better

soacin^o£ its' mahir Si7?

not fnT much

the period

of this

been'achieved

success has

getting to be like
ings.
are

future of stock
these

is

that

a

rare

of the inflation
is

abroad

other

uryfimS

ning to

is

mittee

mittee.

prices.
balanced

Federal

0

see

psychology which
the

in

that

we

country.

are

Members of the Field Day Comare
Jerome
J.
Burke,

paint-

budgetTif ita doesof the steam out
come to pass-.
should take
lot

toward auarterlv <mnpinp nf Tvpsc

the
Federal Reserve may face serivantage of reducing the constant
ous pressures to supply reserves parade of the Treasury to the marto the commercial banks to ac- ketj and it gives the Fe(jeral Re_
year,

now

The
begin¬

signs that the low cost
0

of equity financing is encouraging an acceleration in the issuance
of common stocks and convertible
^°"imo^at? Treasury financing serve a freer hand in monetary debentures. This should exert an
n8eds- This would not be a happy policy actions.
important effect on the supply
Prospect if the national economy p
y
side of the stock market.
moves into a full recovery by the
ly', y iartne most impor-

Arrangements Committee: Wil-

d. Lee, Rand & Co., ChairEdmund O'Leary, Eastman
Dillon, Union Securities & Co.;
William Simon, Weeden & Co.,.
and Edwin A. Bueltman, Blair &
son

man;

Co.

™°"ld
be the time for an inHationary expansion of the money

"rv's "fforts

that^toS"
to balance the budget

Tame?

skenticism

What can be said to support the of
.
-t
.
,
contention that corporations will £,
f t'h
b d° t
m
nn+
linniHotn
nnH
not liquidate, and perhaps even h
hf •
f
hiinnr*
a+
increase, their holdings of Gov- <.77 bj]lion 1gvg1 Th
ernments during the balance of
i^0. ®\trGafriVaiofprSt
this year? One strong argument for Uik result." oi
course, Conis that we are now in the midst of «ressi0nal action mav still' unset
a powerful recovery of corporate SlcSns
but if c o ?n o r
profits. During the first quarter Drofits vise'above the
billion
of 1958 corporate profits had
,°1Ub
" level this year,^ve may very well
it
iallen to a recession low annual bG tbat a oiiffi-,+ cnrnins win Hp
rate of $31.7 billion (before taxes), velott
As the result of business recovery
and the economies achieved by the
Balance of the Federal budget
use of new plant and equipment should have some enormous adbuilt during 1955-1957, corporate vantages for national economic
profits had already risen to an an- good health. For one, it will serve
nnrhonc

„

..

a/th

ounn

b|

_

.

,

F

ReRlv

chairman^

Cood^^

Wh'liam

Blue List PuWishhie

shrn^

s

The Bond

&

Co'

P

McKav

Co'-

William

4

Rover

S. Shanks, The Bond Buyer,

Finance Committee: Truxton

Pratt, The Bankers. Trust eom-

In including, what can be said » Chairman; Arthur T. Dilger,
about the economic and Weeden & Co. and Coleman B.
financial outlook for the balance McGoyern, First National City
of the year? Most observers agree Bank.
briefly

successful^ Desnh^the

-

looking Ahead

Incorporated.

Annnnnppmenkrommittee'
Announcements Committee:

,

f«°"d h.a» °J «?e year. This

33

(2437)

that

general

business

Prizes: Alfred Bianchetti, J. A.

conditions

will continue to improve as the Hogle & Co., Chairman; Donald,
year goes on. My guess is that the Breen, Glore Forgan & Co.; Willevel of GNP will rise to about liam M. Durkin,
First National
level of GNP win ri*"" +~
m 1M ni,Wri"
1rw Mafinnai
year as
a
Bank of Chicago (New York);

?4.75. bili»on £o'' .the

whole- There is little doubt that Harry W. Faath, Jr., Marine Trust
the threat of a steel strike' and 1Com?a"y; Edward Meyers, Ladthe resulting inventory buildup, law & Co.; and Charles V. Smithy
accelerated the pace of recovery Clark Dodge & Co.
in
a

the

current

quarter.

Whether

materializes or not, the
of recovery seems likely to

strike

pace

Sports Committee: Theodore P.
Swick, White, Weld & Co., ChairJohn Large, C. J. Devine
& Co.; Robert Schlicting, Kidder
Peabody;
John
G.
Thompson,
Morgan Guaranty Trust Co.;

man;

slow down somewhat in the third
quarter, with a stepup in the final
quarter. I expect this to turn out
to be a big year for residential Chester W. Viale, L. F. Rothsto dampen the inflation psycho- construction. Based on mortgage child & Co.; and Joseph B. Wise,

nual rate of slightly over $45 bil-

Bon in the fourth quarter of 1.958 sis as the public becomes aware
on a seasonally adjusted basis, that the Administration has asMany competent students of cor- sumed greater control of Federal
porate profits now expect that spending. For another, it will recorporate profits may rise as high move the Treasury as a major
as $53~55 billion in 1959. This ex- source of demand for capital
Pected high rate of profits is a funds, and will thus relieve the
good reason in itself to anticipate pressures on the capital markets,
that corporations will maintain— As I noted earlier, the Treasury
or even increase—their holdings will be required to do about $9
of Government securities. In addi- billion of new money financing in
tion'
is generally expected that the second half of this calendar

commitments already on the books J. A. Hogle & Co.
of institutional investors, it would

Members of the Committee for

not surprise me if private housing the "Daily Bond Crier,"
starts ran as high as 1.4 million group's humorous newspaper,

the
are;

this year. Toward the year-end, Eugene E. Kelly, Carl M. Loeb,
however, we are likely to see the Rhoades & Co., Chairman; Leoneffect on starts of a lessening ard A. Bucci, Bond Buyer; Joseph
availability of residential mort- c. Cross, C. J. Devine & Co.;

fnfia

gage credit.
Berger Egenes,
Merrill Lynch,
Also, as the year goes on we Pierce, Fenner & Smith, Incorpomay expect a rise in plant and rated; Francis P. Gallagher, Jr.,
equipment spending by business w. H. Morton & Co., Inc.; WUcorporate plant and equipment year, but this is a seasonal mat- and industry. This will probably liam B. Kondratuk, Reynolds &
expenditures will not increase ap- ter, and this borrowing will un- not be of major proportions, how- Co.; Edward Meyers, Laidlaw &
preciably during the balance of doubtedly be repaid in the first ever, in view of the heavy plant Co.; Henry Milner, R. S. Dickson

the

publk

this year> so that there may not half of calendar 1960. Still another expansion carried out by business & Co., Inc.; Frank J. Murphy,

tne

interest

tion of credit restriction bv risine
the rediscount rate
the business

Bv this

reeoverv

was

and the huge Federal budget

wav

Of nearlxr <m billion in fiseai

bad

time

under

hPflmtn

dm^inn

infiatiW and in

aeveiop

in

rate, and this is

a

for

rates.

the

nn

^

to

mium

iq?q

revive enneernabout

rise

of

further

reason

In

recent

Weeks it has been natural for in¬

terest

have

rates

to

moved

go

into

higher
full

as

we

still anyone's guess as to what will
|0 corporate holdings of
in

Governments

the

balance

of

and this is an area of
financing which bear s
close watching.
this

ply of capital funds have devel¬
oped.

uailVil)i

addlf ai\ P
f spectacular
fhoyement of interest have been a
rates during
the past year, there
w,

of highly significant developments in the area of Federal
financing. The niost important, of
couse, has been the very existence

number

inU?fcr»?i 1959. There
Th^r^ri
fiscal IQ^O

m

are

aSeHicn?iccid but I would
h^T IS
discussed,

might be

like in particular to call attention
to the success which the Treasury
has had in placing its debt in the
hands of business corporations.

Higher Rate for Governments
Another
interest

in

est since 1955, probably rising to

subject of fi¬
developments
would be incomplete without some
mention of what has been going
Any talk on the
nancial market

recovery

development of major
the Federal financing

0n

_

the

in

Like most

_

_

v

common

stock market.

observers, I have mar-

^ield is the fact that the yields on veled at the way stock prices have
iong_term Government bonds have climbed m the great bull market.
now risen beyond the 4J/4% statuEarly in May, for example, Standinterest

me^t

ceiling on Governsecurities with maturities in

ttlat

ard and Poor's composite common
stock yield index stood at about
3.20%, as compared with Moody's
AAA
corporate yield index of

0f fjve years.

This means
present time, and in

excess

at

the foreseeable future if present 4.30% at the same time. What are
trends

continue, the U. S. Treasury

cannot

sell

long-term

the

reasons

for

the

behavior

bonds to the stock market?

nnnhank invpqfnr*; tiiilessi Congress

erants

L+p

an

increase in the statutorv

Thn« far

nn

rpmiprt has been

I™?-\laJrTnr°Mr^f^for

thl statute^

_

crease

an

in-

durable consumer goods in general and that sales of American-

liam E. Simon, Weeden & Co.,
Charles V. Smith, Clark,
&
Co.;
and
John
G.
Thompson, Morgan Guaranty

5% million

Trust Co.

made automobiles will be he high-

Examines Equities' Market

year,

Federal

and greater pressures on the sup¬

deficit

eral Reserve authorities to carry
out their policy actions.
'i

bappen

of

cars.

¥

^Be balance of this year the comBined demand for capital funds
by business and industry, the 1 ed-

___

_

_

j|am Simon, Weeden & Co. for $1
per copy,

era* Government, state and local

government, and for residential
financing will press against the
supply and that by the year-end
long-term interest rates will be

somewhat higher than at piesent.

Appointed Trustees
Of Fordham Univ.
Joseph A. Kaiser, President of
Williamsburgh Savings Bank,
and Paul E. Manheim, partner in
Lehman
Brothers, have been
named
to
the
newly-created
Board of Lay Trustees of Fordham
University.
Announcement
of the appointments was made by
the

Municipal Bond Club
Field Day June 12th

general public. As the expecta- nual field day on Friday June 12
^

Dodge

So far as financial markets are
Copies of the "Bond Crier" wUI
concerned, I anticipate, that for be available June 11 from Wil-

The Paramount reason has un¬
>doubtedly been the inflationary
The Municipal Bond Club of
Psychology which has gripped the New York will hold its 26th an-

rate, which

inc.;

_____

Fordham's

President,

the

Very

holdings"of governmenf secu- f1 ^B°n °f "creeping inflation" has at the Westchester Country Club, Rev. Laurence J. McGinley, S. J.
fities by corporations increased
The Board of Lay Trustees, acLTeatMllticalh™mdS Un- grown, the stock market of Irving Rye, eolf Y,
has been
N. t<
™
«
a great political nue ana cry.
un
rGsnrfe/l
A
from $13.3 billion in June, 1958 to
"ho'wever'" we" a^re" to^resian resorted to as a means of trying
A golf tournament will be feat- cordinA'o "its bylaws' wilT be the
$21 billion in March, 1959
an ^^10^11^1 short-term se- to
hed2e gainst rising prices, tured, with prizes for low gross SpXcipal lay board of the uniincrease of $6.7 bimon. Corporate
A®e 'aft nf which
There is little doubt that personal (member); low gross (guest); low Versitv" and has been formed
The

as

a

means

-

mav

alarwhich

holdings of government securities
in

excess

of

their

tax

jpose about $4.5 billion from June,
1958 through March, 1959.
The
increase in corporate holdings of

govemments is,of

prodnct.of the sharp increase in corborate profits as business recovery
has proceeded, along with the lull

Corporations Liquidate?

The big question before us to-

day is whether

the corporations
hold this increased amount of governments—
and perhaps even increase their
holding further in the first half
will

continue

i

n

rah°p fhTstatutorv

to

•of fiscal 1960 when the Treasury
will be required to raise about 9
billion of new money. Or will they

liquidate some of these governments, as many believe, to finance
i*
—"^-ion
and
plant

?

a

§

•+!!

1 iaismg

if

loiig-

to note that,
financing has been
crowded into the shorter maturities, a significant change has taken
place in the yield curve on Government securities. In April of
1953, for example, the yield curve
sloped upward to the right—that
is, the yield increased progressively from the shorter- to the
longer-term issues up to 15 years
and then flattened out.
Today,
except for the one-year or under
it

as

is

interesting

Treasury

Bxed-income

cooperate

.

n

capped by a rate ceiling.

mmmmmmmmmmam




rate
u

manKr

course, a

in corporate expansion.
Will

nGV|?d

In a^y event, the statutory a

Jg^visTasrirt^

might have g0I^e net. (member); low net (guest);
and
securities,; ei- lowest net score each foursome; wUh ihe president and administher directlY or through savings longest drive (2nd hole) and trators of the university "
institutions,have been diverted in "nearest-the-pin" (10th hole), natora ot me universitj
large amounts to the stock market. John W. Large, C. J. Devine &
H is the first formally oiganwe have
experienced a Co., is in charge.
ized lay trustee group m Fordgreatly increased flow of funds
A doubles tennis tournament hams 118-year history. Legal
into the stock market in a period has also been
arranged with ownership of the university and
-n
the floating supply of prizes for winner and runners-up, ultimate policy control will constocks has tended to be compara- under the direction of Joseph B. tmue to reside in the Society of
tively static. The factors holding Wise, J. A. Hogle & Co.
Jesus, in accordance with the
down the increase in supply of
John
G.
Thompson, Morgan statutes of the university.
stocks arb: (1) The capital gains Guaranty Trust,
will organize
tax, which tends to make pur- a softball game, with the teams to
Chicago Analysts Hear
chasers hold on to their stocks; (2) be headed by Alan N. Weeden,
The fact that interest is a deduct- Weeden & Co., Inc., and James G.
CHICAGO, Illinois—William G.
ible cost for corporations for tax Couffer, Jr., Drexel & Co.
K
np(.
President of the Beatrice
purposes, which encourages debt
A horseshoe pitching meet, with
•
'
,
,
financing; and (3) The unwilling- prizes for first, second and third Foods Co. will be guest speaker
ness of corporate management to teams, will also be held under the at the luncheon meeting of th©
dilute ownership through the is- direction of Robert Schlicting, investment Analysts Society of
suance of additional stock. These Kidder, Peabody & Co.
Phinnffn to hp held Mav 28 at the
factors have led some observers
Bridge and swimming are also
to state that some common stocks to be featured.
jviidiana noiei.
into

liabilities

ThSs,

t

..

.

34

The Commercial and Financial Chronicle

(2438)

Continued from

first

higher

page

for

rate

loans.

Loans

commercial

The

of

Development Bank and
Pneito Rico's Piogiess
investment

government

channeled into

been

the

developmental agencies.
Its
dustrial
lending
operations

have

creation

coordinated

expansion of basic public facili¬
ties required to support a rapidly

or

growing industrial

with

World's Top Investment Kate

During recent years Puerto Rico
has experienced one of the highest
rates of investment in the world.

such marked success since

The

1950.

in

it

was

EDA

Ad¬

ministrator

creased

Board of Directors and the Presi¬

from

of

rate

annual

an

dent of the Bank serves ex-officio

$29 million in 1940 to $108 million,
$274 million, or 21%
gross product, in
1958. This
high rate of investment, which is

as

in 1950, and

in

enjoyed by Puerto Rico today,

is

of

Rico's

Puerto

total

amounted

assets

$63 mil¬

to

financing consisted
of legislative appropriations to¬
talling $20.5 million.
Although
the Bank's primary objective is

economic

Describes Development Bank

to

Government

Development
leading role among

contribute

economic

to

purposes

Short-term loans

The

devel¬

under

normally

lend

60% of the appraised value

up to

of land and improvements and up
to 50% of the appraised value of

machinery and equipment as col¬
lateral.
The percentage actually
loaned depends upon such factors
as
the significance of the
bor¬
rower's

operation to the develop¬
the profit expect¬

ment program,

of

the

and

the

resale value of the collateral.

The

ancy

operation,

public and private institutions in
the expansion and development of
the financial aspects of the Puerto
Rico economy.
The
Bank
is

i

autonomous

an

public corporation entirely owned
by the government of Puerto Rico.
It

occasions

collateral

requirements
by the manage¬

waived

be

ment on loans of up to $10,000 to
small businesses engaged in activ¬
ities which would contribute to

the

development of the economy.
A first mortgage is required ex¬
cept under special circumstances.
Loans

granted

ernment

the
—

Bank

fiscal

made

was

borrowing agent

or

Government

of

for the

—

Puerto

Rico

for the municipalities and

corporations
1948

a

of Puerto
charter

new

which

and

public

Rico.

In

enacted

was

Bank

is

seven-member

governed 'by

board

of

a

directors

appointed

by. the

of the Bank's capital
from private sources,

Governor.

Al¬

none

only four of the present directors
are

government officials: the Sec¬

retary of
the

the Treasury

(who

Chairman of the Board),

serves as

Secretary of

ministrator

of

State,

the

the Economic

Ad¬
De¬

velopment Administration and the
Chairman

of

the

Puerto

Rico

Planning Board. The other direc¬
tors include two prominent Puerto
Rican businessmen and Mr.

Beardsley Ruml of New York.
Although not strictly
bank, the Development
endowed

usually
bank
its

with

associated

function

as

Rico's

fiscal

agent

for

public

empowered to discount
cial paper for the local
use

of

commer¬

Bank has

made

loans

to

in the

past. The Bank also acts as
settling agent for the clearing of
checks among banks in Puerto
Rico through a non-member acwith

the

Federal

Reserve

Bank of New York.
The

toward

creating

for

well o as

As

step

a

wider

a

made

were

as

form.

market

Government

Develop¬
ment Bank debt
obligations, this
borrowing opened a new avenue
of

lic

investment

to

access

needed

in

both

sectors

of

funds

private and pub¬
the

Puerio

Rican

economy.

the

by

Gov¬
Bank are

Development

Development Bank has al¬
closely with other

worked




From

the

start

its

of

private

Private

Business

Government

Bank

will

tions

for

would

Development

applica¬
projects which

economic

Puerto

n

larly with

Rico,

respect

to

devel¬

particu¬

on

reasonable terms. The

Development Bank does not
pete with commercial
other lending

com¬

banks

or

institutions; but
rather, the Bank's loans serve to
supplement
from

other

financing

available

sources.

Loans are normally approved on
the basis of the Bank's evaluation
of

the

anticipated
as

well

as

success

the

of

the

credit his¬

and the
production and marketing experi¬
ence of the applicant.
Firms that

borrow

from

the

Bank

may

be

new
or
or

or
long established, locally
externally owned, tax exempt
subject to taxation, large or

small.
•

The

following

categories

ment of industrial

are

or

commercial

when

the

loan

cannot

be

handled

by private sources, and
(4) hotels or other essential tour¬
ist facilities.
At present the Bank
annual

tourist

ing' for housing projects prior to
1951; and $3 million to commer-.
cial banks.

.

According to

developing

PRIDCO when

stronger

more

establishment

particular

tion

felt'that the

expansion

or

of

some

a

loans

Bank.

PRIDCO

loans

to the bank

other,

have

charges

interest rate of
industrial
loans
and
a

6%

an

for

slightly

the

in

,,

4'

ever

attractive

fi-

,

Puerto q'
v

Bank

was

-

-

,

-h

.

granted ,r*

establish

to

the

an

-

a.

non-

clearing account with the

Federal 4 Reserve

Bank

of

'

«

New mi;

York, thus enabling it to serve as;jm
settling agent for banks in PuertpJ i?/

cases

sold

been

after the

1952

member

in. participa¬

In

4

In

in

serves

environment

permission

with the Government Devel¬

opment

Bank

and

Rico.

PRIDCO

cases

the

nancial

■

In

also made

has

is

agent,

enterprise would be
to ■ the
development

important
program.

it

^

fiscal.£j.

wider role of

Rico. This voluntary system has
yd
satisfactory facilitated the daily settlement of.-ap
claims arising from the exchange n r
operations.
'
Recently the Development Bank of checks fin Puerto Rico—thus.;
initiated a program of sales from greatly reducing the
"float," or!
its loan portfdifo to other finan¬ uncollected balances.
'

have

enterprises

demonstrated

cial

institutions.

loans

have

shown
of

Bank's

\

virtue

a

Government

of

Develop¬
$6*0

These

same

manufacturing firms accounted for
19% of total factory employment
in

Puerto

Rico

th»n

more

$25

monwealth

net

and

contributed

million to Com¬
income in that

year.

the

bor¬

the

in

pur¬

portions

of

couraged

loans

in

en¬

participation

with commercial banks and other

institutional lenders, including the
Business Adminis¬

Federal Small
tration

the

and

Puerto

Rico

In¬

dustrial

Development Company.
example, in 1956 it joined

For

with The Chase Manhattan Bank
in

making

a

$2

million

loan

to

Central San

Vincente, the second
largest sugar mill in Puerto Rico.
Another loan
made

to

recently

a

sugar mill

in

was

participation'

with the Banco Credito y Ahorro
Ponceno. In 1956 a loan of over

$4 million
Bank

was

disbursed

part of a $12 million in¬
vestment in the Caribbean Refin¬

ing Co., the first oil refinery es¬
tablished in Puerto
Rico; the
balance was mostly mainland
cap¬
ital largely supplied
by institu¬
Development

The Government

Bank

is

also

par¬

ticipating to the extent of nearly
$4 million in a loan to Gonzalez

coordinates and executes all perservices.
The

Bank seeks to meet the'financial
needs of

public entities hj. Puerto
Rico on an orderly, basis, using
forms of borrowing that best, suit
the

and

actions

ity

have
to

,

conditions

or.

bearing

a

use

to

or

financing.
<

In

on

&

with

fiscal

its.

the

Greater

,

market'

the

Bank's
'

*

Use of

Tending
-

arranging

participa¬

by
of funds

Federal

Bank

follow'

if

each

borrower

acted

independently. This system avoids
disorderly competition for limited
funds, and it provides an institu¬
tional

means

perience" for

public
Of

of

accumulating

the

t benefit

more

all

V-

than

•

$700 million

credits

arranged by the Bank
governmental borrowers since

for

1945,

over $300 million was in the
form of long-terfrp funds for capi¬
tal

investments.^! This " financing

has

enabled

vide

public

rapid

Puerto

Rico

wofks

essential

economic| growth

schools, fVater
systems, and electric
ways,

works.

to

for

high¬

—

and

pro¬

sewer

power

net¬

Increasing confidence

stability

tracting directly various types of
private external financing for de¬
velopmental purposes in Puerto

year

to review with the

cial

banks

and .the

through contact with finan¬
institutions and investors in

<->

Bank various

clearance
and

settlement

matters

-

interest.-

4

Another

v

n

aspects of the cheek riT

and

other

commer- '-fa¬

Development

of;

in

way

system

U

common

v

which

^

the

Development Bank i •
the financial community isrxr
the

Finance

This

operations

Council

Council

of

of

Puerto

thegfn
Rico.;

is

presently com^ku:
posed of the heads of eight governuernrnent' agencies — including them?

from

outside

The

of the

Economic

of

perwu t

govern-* ecu

Research

mr

serves as

T

t

Council." The >rfi

the

of

a

"financial ;K

character to the Governor through^

consultation

joint
The

work

coordinate
and

tions

of

this

i

research. T't

and

body

helps

to d'J

financial- operatic)

the

policies of the various- -L

government agencies ^and depart-a'vf
ments.

2V2

In

of-existence^'

years

the Council has considered

a

wider

of

Commonwealth Government.

on

Puerto Rico is evi¬

!

•

Contribution

to

-

I

over

the past lew years.

might add that the Government

f)t
i.qtr;

..

Development

'

Program

.

The

Puerto

-.'.

/

Rican economy has urn

experienced "a number of basic tii
changes since the Bank-iv*

structural
was

established.

first

The

activi-x* I

ties of this institution has evolved
to

meet

new

conditions

circumstances

and

they arise. During
the early years of the Bank's ex-ex¬
istence, there was little demand
for
private developmental lend- ,:i'<
ing. Most of Puerto Rico's indus- 'U
trial expansion has taken
place"
since
1950;
consequently,
the
as

Bank's

activities

private

lending

in

the

field

of

increased

have

>

H

sharply in magnitude during the\>r"
past few years. Although this in-j .
stitution initiated private lending^
in 1944, more than two-thirds of
the

total

amount

disbursed

of Puerto

cial

4.

of

-

ex¬

of

borrowers^

the

ducted

Rico

i

>-

single authorized fiscal: range of financial topics, espe-^ .•
agent offers certain -valuable a'd-4 cially in the field of
financial.7; >
vantages.
The
services ' of - the legislation. By contributing to the,f|q
Government
Development •' Bank improvement of policy formula-.nit
offer
flexibility
in-^operations, tion within its area of responsi- ni
eliminating duplication of organi¬ bility, this advisory body has\uit
zation
and
effort
that ' would ' clearly met ia long felt need in
thehi?f

tion loans, the Bank assists in at¬

the States.

5

v v

Officials

Reserve

.v

a

denced from thg large amount of
public finance Successfully con¬

In

the

recommendations

•?

pally by mainland institutions.

princi¬

r

function of the Council is to make o r

pro¬

rr\

States

areas."

Department of the Bank

will also provide prospective pri¬
vate borrowers with^ information

the, part of private investors in
the. social, economic and political

to

of

Secretariat

Puerto Rico. The New York office

about

>-.

New York'visit Puerto Rico each

sons

affect

-

v

of:

-

ment.

insightr is

asthey

the

two

velopment Bank—and three

thus attained concerning the con-,
ditions and requirements of- the
money

r v.

the

President of the Government Denver

ipeyelop-

ment Bank maintains an'office in
New York Gity, at 37 Wall Street.

community.

followed

communities

.

and

the

through

which

the capac¬
receive .cfedit

operations,

an-W

would-a,

Government

on

/ iVo.?,-

connection

agency

action

business

serves

officials of the public bodies

Rico

of the Second

or

enhancing the mobility

the

of

This

between

U..S. capital

character

Board

Puerto

Puerto J Rico

adviseg,,. plans,

Chemical Industries, a
large Puer¬
to Rican chemical fertilizer
plant
which has been financed

addition

the

the ..Common¬

tinent, .technical

market

Reserve

that

adoption 1 of
par
clearance
of*
by banks-in Puerto Rico. 4
This change in policy has aided

Government, the* munici¬
palities and public corporations of
Puerto Rico, the Government De¬
Bank

an

checks

wealth

velopment

year ago,

(New York) Federal Reserve Dis-wi
trict."

As fiscal agent—or. official bor-r

rowing agent—for

over a

be considered "in

Operations ;

Agency

Federal

nounced

rapid turnover of the Bank's re¬
sources,
thus making additional
funds available for new financing.

of

by the

as

the

the Bank's portfolio. The objective
of this policy is to permit a more

Fiscal

little

a

important step took place which
brought the Puerto Rican banking *,>&;■
community closer to the mainland i.Vfinancial system. On Jan. 1,
1958, u,

commercial 'banks

interest

short-term

grams.

The Development Bank has

Just

through

of

success

rowing firms,
chase

the

As

seasoned

become

demonstrated

special study ofmanufacturing firms financed by This permits officials of;the Bank
the Bank, it was estimated that
to maintain close
day-to-day con¬
private capital put in motion by. tact with the mainland financial

tional investors.

buildings, (2) acquisition of ma¬
chinery and equipment, (3) in¬
dustrial inventories in
exceptional
cases

as

facilities and commercial
centers;
$26 million in temporary financ¬

increasing

industrial production and
employ¬
ment.
Such
loans
are
granted,
when, in the opinion of the Bank,
the desired credit is not otherwise
available

such

million through 1955.

Loans

consider loan

private

advance

opment

enterprises

ment Bank loans amounted to

banking typical of the types of loans which
Although it has not mad<f the Bank will finance:
(1) con¬
authority, the Devel¬ struction, expansion and improve¬

commercial banks for short pe¬
riods of time on a few occasions

ways

bearer

payee

this

opment

oount

in

named

tory, the capital structure

to

borrowers,
the Bank serves as a depositary
for government funds;
however, it
does not accept deposits from the
general public.
The Bank is also

system.

possible, the notes

available

'.Otr

collateral, capital ratios, expe¬
rience, etc., are referfed
to

may

tion

Financial

In addition to its functions in
the field of private lending and its
activities
as
government

to

all

five

a

the

Community

respect

other

project

addition

with

manufacturing; $9 million for

central

with

In

Bank

principal or interest
their financial obli-w;

Developing

ing standards of the Government
Development

of
of

any

Rico

Puerto Rican and mainland banks.
To facilitate the widest distribu¬

sold

on

gations.

Develop¬

Puerto

borrower. The Bank also advises

it

1957

powers

certain

operations.

Puerto

central
Bank is

the

and

had disbursed $65 million distrib¬
uted as follows: $27 million for

In

own

■«

a

Government

Thursday, May 28, 1959

.

payment

two

Puerto

general obligation hote issue
totalling $15 million to a group of

resources.

The

though

come

its

year

defined the
and responsi¬

institution's powers
bilities.
'
"

has

supplement

clearly

more

The

agent

to

several

on

in

the conditions of the

Legislative

Assembly of Puerto
Rico
to
provide developmental
loans to private industry. In 1945

borrowed

agencies

by

lending operations in 1944 through
February of this year, the Bank

established in 1942 by the

was

has

the

Bank

curious

seem

granted

.

.

normal

disbursed

Bank

—

ment

special circum¬

will

Bank

may

are

Industrial Development Company.
Firms that cannot meet the lend¬

occasionally

only after acceptable
opment by serving the borrow¬
Bank plays a
evidence
is
presented
by
the
the
institutions
concerned
with ing entities rather than to achieve borrower to the
effect that the
a strong showing in terms of net
financial aspects of Puerto Rico's
machinery a nd equipment is
operating income, it has, never¬
development. This institution is
theless, succeeded in accumulat¬ properly installed and operating,
vested with important, responsi¬
or
that
the
buildings are con¬
bilities
in the financial sphere. ing a surplus of $11 million since structed.
During the period be¬
the start of operations.
Its capi¬
The Bank has two basic functions:
tween approval of the loan and *
tal accounts aggregated $31.5 mil¬
to provide medium and long-term
the installation of machinery or
lion as of Feb. 28, 1959.
Experi¬
financing for the creation or ex¬
construction of buildings, the Bank
ence
has
shown that the Bank
pansion of projects which will
extends a commitment letter en¬
must demonstrate a strong finan¬
further the development of the
cial
position, both to
perform abling the borrower to procure1
Puerto Rican economy, particu¬
interim financing from a commer-'
properly its lending and fiscal
larly for manufacturing purposes;
cial bank. Thus the Bank collab¬
agency functions and to engage in
and to procure funds for Puerto
orates with the commercial bank¬
borrowing from time to time for
Rico's
public borrowers." In a its own account.
ing system and adheres to its
more general sense, the Bank ini¬
noncompetitive policy.
The Government Development
* f
tiates and collaborates with other

Rico

When the col¬

are

it

loans

governmental

term

a

first

that

will

ery and equipment, the life of the
loan may not exceed five years.

may

Ori ginal

lion.

development.

The

key

1959, the Bank's

As of Feb. 28,

;

clear indication of the sound¬

ness

PRIDCO's

of

committee.

Financial Resources

economic prog¬

the

ress
a

member

a

investment

of

evidenced

Bank's

the

on

15 years.

granted

Investment in new construction,
machinery, and equipment has in¬

is

to

At

of
and

stances.

and

initiated

of up

in¬

the Puerto Rico In¬
dustrial
Development
Company
(PRIDCO)—the agencies chiefly
responsible for the aids-to-indus¬
try program which has enjoyed
(EDA)

building

normally, be considered for

are

Development Administration

economy.

types

industrial

lateral offered consists of machin¬

Economic

the

other

for

.

business loans occurred

eight

years

in

.q

during the

since 1950.

^

llt>

Rico, its municipalities,
-Although most of the Bank's-.-,
public corporations
of private lending has been and still
»
Puerto Rico have an unblemished is for
manufacturing purposes, the
debt record.
They have never de¬ Bank has helped to finance devei- "0
1^1,
faulted or been delinquent in the
and

the

/*•

i_i_

mi

t-»~.

Volume

loan

189

Number 5850

.

policies have

.

.

The Commercial and Financial Chronicle

.

been—nor

not

Continued

they be—centered solely on
manufacturing.
As long as re-'
sources
areadequate to extend

from

need

lending
fields,

wherever

ment

projects

sound

The State of Trade and
rent agreements.

financial

"This

assistance that private
enterprise
is unable to
provide. An

workers'

expand¬

y,

lion granted
by
merce,

the Bank for com¬
tourism and other busi¬
have proved highly

purposes

beneficial.
loans

In

trial

sector;

have

.

initiated

of

in

other

press

scale

financing.

Large

low cost private home

con¬

during

agement

the

approach to

housing development

unfamiliar

was

ment

the

to

local

Mr.

whose

ects

Federal

home

sale

and

of

guarantee/

received

The

a

market

in

mortgages

for

on

v

Thus

extend any

additional

as¬

to a great variety of
enterprises—such as super¬

/

new

area

in

To
which

Strike

have also conin importance.1

j

A

basiq

to

a

Rico

facilitate

and

entities
the

its

with

monthly capacity of about
capacity) stayed on the job.

of

efficient

the Bank's fiscal

activities.

of

-growing local market for munici¬
pal hond issues is an' additional
encouraging sign. A coordinated
effort to

wider private par¬

secure

ticipation will leave the Bank in
-a
position to devote greater re¬
sources

the

to

and untried
the

financing

of

-

-

.

a

Last

.

This

combination

performed

by

the

(18%

of

strike July might not be as slow as most steel -

"Steel's"

sleelmaking

operated their furnaces at 95.5%

of

price composite on No. 1 heavy melting grade
held last week at $33.33 a gross ton.

of

scrap

functions
,.

ment of a firm base for continued

development

in

Puerto

Rico.




Output Based

American

Iron and

on

Steel

94.3% of Capacity
Institute

announced that

the

operating rate of the steel companies will average 166.3% of steel
capacity for the week beginning May 25, equivalent to 2,671,000
Ions of ingot and steel castings (based on average weekly pro¬
duction for 1947-49) as compared with an actual rate of *164.6%
of

nancial environment—has contrib¬

importantly to the establish^

The

capacity and 2,644,000 tons

a

Actual output for the week
to

93.4%

week ago.
beginning May 18, 1959, was equal

of the utilization of the Jan.

147,633,670 net tons.
cast is 94.3%.

May

in late June

22

and

that if car
July, dealer

car stocks crowding 800,000 units, this would result
perhaps unwieldy inventory of nearly 2,000,000 vehicles,
highest all-time count in history.
.■ i
a

,

Ward's calculated

output at 133,739 automobiles in the week
ended May 23 compared Jaw85,856 in the earlier week. The 1959
high is 135,953, set Japf 12-17.
The statistical publication indicated car output will fall to the
120,000-unit level this week, when some producers will close down
Friday (May 29) to give their workers a long holiday week end.

in Lansing and Studebaker in Soutft
Friday. It appeared that other General Motors
plants would operate only four days, as well as various Qhrysler
Corp. factories. Reports were that Ford Motor Co. and American
Motors planned to work five days this week.
Ward's said

Oldsmobile

Bend will be idle

.

on

;

The recent week's industry reduction in car volume was
attributed to General Motors, whose output sank 3.8%. Ford Motor

Chrysler Corp., American Motors and Studebaker-Packard
equalled or surpassed previous week's levels.
i

Co.,
all

Six-day car-making

was

in effect at 11 plants in the recent

week, according to Ward's; eight Ford Division factories, including
Edsel at Louisville, Ky.; Lincoln-Thunderbird at Wixom^ Mich.;
Pontiac at Pontiac, Mich.; and Rambler in Kenosha, Wis., which
again sought to reach an American Motors all-time
duction high.

weekly pro¬
!

.

scheduled by Dodge Main and
Imperial in Detroit, down Monday,(May 25), and Chevrolet in
Oakland, Calif., idle Friday (May 29). Dodge Main turns out
some De Soto models as well as Dodges.
Four-day

operations

were

reported truck schedule at 27,295 units for the week
23, up 0.9% over previous week (27,051) and only
0.7% below the 1959 peak of 27,480 established May 4-9.
ended.

May

,

Last week's combined
a

car-truck volume of 161,034 represented

1.1% fall from preceding week's 1959 record

Electric Output

The amount of electric energy
and

of 162,907.

14.3% Above 1958 Week

.

i <

,

distributed by the electric light

industry for the week ended Saturday, May 23, was
kwh., according to the Edison Electric

power

estimated at 12,931,000,000
Institute.

23, output increased by 247 million
previous week and showed a gain of 1,615,-

For the week ended May

kwh. above that of the

000,000 kwh. or 14.3%

Car

week.

above that of the comparable 1958

Week +

Loadings 23.8% Above Corresponding 1958

ended May 16, to¬
taled 694,380 cars, the Association of American Railroads an¬
nounced. This was an increase of 133,340 cars or 23.8% above the
corresponding week in 1958, but a decrease of 27,764 cars, or 3.8%
below the corresponding week in 1957.
Loadings of revenue freight for the week

Loadings in the week of May
above the

Lumber Shipments
For
Lumber
ber Trade

16, were 16,982 cars, or 2.5%

preceding week.

0.5% Above Production

May 16 Week

shipments of 478 mills reported to

Barometer were 0.5%

the National Lum¬

below production for the week"

of these mills were
Unfilled orders of reporting mills amounted
to 47% of stocks.
For reporting softwood mills, unfilled orders
were equivalent to 22
days' production at the current rate, and
gross stocks were equivalent to 43 days' production.
For the year-to-date, shipments of reporting identical mills
were 2.8% above production; new orders were 5.6% above pro¬
In the same week new orders

ended May 16.

3.2% above production.

duction.

/

•

Compared with the previous week ended May 9, production
of reporting mills was 1.7% above; shipments were 1.0% below;
new orders were 1.1% below.
For the latest week, as against the
corresponding week in 1958, production of reporting mills was
6.3% above; shipments were 6.3% above; and new orders were
12.3% above.

-

Business Failures

Decline Sharply

<

dropped to 259 in the week
ended May 21 from 311 in the preceding week, reported Dun &
Bradstreet, Inc. At the lowest level since the first week of this
year
casualties were considerably below the 337 occurring a year
ago and the 309 in 1957.
Fifteen per cent fewer concerns suc¬
cumbed than in the comparable week of prewar 1939 when 303
Commercial and industrial failures

reported. Earlier in the yea/, industry spokesmen predicted 1959
output would hit an all-time high of 1.9 million tons. It now looks
like the estimate v/ill possibly be surpassed.

Government

Development Bank—in the sphere
private lending, in the conduct
of
public borrowing operations,
and as a leader in developing a
stronger and more attractive fi¬

economic

64 companies
tons

»

of

of

uted

ago,

ingot

month

week, steelmakers

Steel
,

no

years

million

capacity and turned out 2,704,000 ingot tons—largest output in
history.
. •
Primary aluminum production is headed for a record year as
firms step up operations to keep pace with rising sales, "Steel"

new

projects significant to

economy.

thought

2

capacity if there is no walkout.

•

agency

of a

booked solid through the

catchup month.

public

The development

are

or so ago, the magazine said.
It will be a
Any orders that customers had sent in specifying
July delivery will be held in abeyance until the back orders are
filled.
That could represent considerable tonnage.
Some mill
officials are revising third quarter operating estimates up to 65%
men

<

ance

,

If there is

—

•

promises

to
perform¬

Eesides, most
likely strike.

any

During the month-long strike three

expansion.
It is the
responsibility to continue
.to arrange for the financing of
capital requirements necessary to
expand these public, services.
A
number of encouraging develop¬
ments point to continued success
in this field.
Wider familiarity
Puerto

persisting,

between the industry and

'''Steel'/, survey indicates that 52 producers will continue to

period of

Bank's

borrowing

are

cautioned

Reports

not cutback

With used

in

Operations if Strike Occurs

industry's capacity.

successful

are

Ward's

operate if the steelworkers go out on general strike this summer.
output—under 1.5 million tons a month at full capacity
That represents 12.2% of the

.industrial

with

30.

—isn't enough to be of much help.

a pressing need for con¬
tinued improvement in those pub¬

services

June

But their

-

There is

lic

before

probable each week.

United Steelworkers to decide precisely
in case of a strike, but it's undoubtedly
considering the merits of a selective strike—a walkout in one or a
few of the major steel companies. The union has never struck
selectively, but it might do so if government and member pressures
against a general walkout are strlong.

the Bank's fiscal

grow

settlement
more

schedules

It's too early for the

development.

functions

a

output

what the strategy will be

participating in this
latter type of financing because
it is believed thlat such structures
'will help to bring about a more

;tinued, to

of

strike becomes

"Steel" said. Three weeks of
the United Steelworkers on
terms of a new contract have done nothing to allay consumers'
fears of a lengthy strike.

The Bank is

.agency

fears

weekly production

Unwieldy New Auto Inventory

Automotive

t

discussion

ings where- individual apartments
or
offices are owned separately.

In recent years

a

Even if everything steel consumers ordered were coming in
schedule, they vyould be in trouble because they didn't order
enough:" As a result, recent deliveries haven't beqp large enough
/to replace steel taken from inventory.

helping—financing is
being provided for the con¬

balanced urban

that

on

.

struction of "condominium" build¬

•'

cold

Th> situation is getting so frantic that company chairmen
andvpresidents are phoning the mills, sending telegrams, and
making personal calls to expedite shipments^ By June 30, some
mill shipments may be four to five weeks behind.*

the Bank is
now

so

Delivery pressures are. being exerted by consumers who want
get.their steel in before the strike deadline of June 1, "Steel"
magazine said May 25.
s

agricultural, enterprises^
another

is

V

-

markets, hotels, shopping centers,
and

talks

to

.extended

.cite

little chance

is

52 Steelmakers Will Continue

among the Bank's disbursements,
financial assistance is also being

v

labor

come

time, orders for third quarter delivery are coming in strong
—stronger than had been expected. The feeling is they represent
less '.'protection" tonnage against a strike and more for actual need.

Increasing attention is currently
being given by the Bank to a ris¬
ing credit demand from the private sector.
Although loans for
manufacturing still predominate:

new

there

average

inventories may reach the 1,000,000-unit mark.

same

sistance, particularly with respect
to low cost housing.

i

steel

(

ing the housing field to determine
can

the

Meanwhile, steel users are pressuring the mills for delivery.
Steel sales departments are spending a lot of time just answering
customer calls and running down the progress of orders.
At the

*

housing
United States.

/The Bank is currently re-examin¬
if it

could

six- to eight-week

A

their

such

the

.

of

suddenly, although Mr. McDonald's staff is
cautioning him against such a move. The solidarity of the steel
side-is reaching some kind of a new high.

the field

completely and to develop

rock-bottom

atmosphere

breakoff

a

success¬

over

y//.;;//".• /•';/"■■

y,./.. /

theypsist week the steel negotiators

cost increase.

really large proj¬

institutions to take

own

DcDonald's

The

mortgages

//...•

Age" said that in

sev¬

ful conclusion of these pioneering
efforts opened the way for private

.

strike and reduce

demands, another long hassle is in
prospect. The reason: Mr. Eisenhower has effectively intimidated
any steel company or companies who had thought they might
possibly—as a last resort—increase prices to meet part of a wage

Development Bank financed

construction

eral of the first

,

a

time to apply the screws for

more

"v''/:vj%/-\'.;/■//// /"'"'Z'y■ ;::/' '/,■■

hammering away at Mr: McDonald's demands—sentence
by sentence. -Thev have tried to smoke out Dave to see what ho
actually wants. Once the steel management side gets an idea of

builders and generally to local fi¬
nancial institutions. The Govern¬

•

He could also get

have been

early

stages
the development program. This

of

■

Ward's

conferences. '

"Iron

struction required special encour¬

on

J

Warns of

"Iron Age."

loss.

based

steel

met.

nonindustrial

;

the

This is one reason why there has been a news blackout.
There-hasn't been fnuch for either side to say. Another reason is
that both sides have had their fill of public economic debate at

financing for private hous¬
ing development/prior to 1950 is
an example of the results of its

.

as

Both the union and the steel companies are debating
separately
just what should be done and. how each other's moves should be

interim

•

much

as

divide-and-conquer threat shook the management side,"

good settlement."

a

Government Development Bank

•

the labor side

scheme Dave McDonald could subsidize

the pay

new

gen¬
eral development of the economy.

•

stunned

A year
tons, or

for 1947-1949.

The metalworking weekly continued: "Under the guise of
protecting the economy by striking only one or two steel firms,
Dave jyicjuo aid could force the other steel
companies to fish or
cut bait. Either tliey would have to shut down or
operate under
a
"mutual assistance" arrangement./ If the unstruck plants shut,

quer

they

cases

stimulated

or

has

*163.5%

was

*Index of production is

cur¬

/

;

down, it is almost certain that their employees would get state
unemployment compensation benefits. Thus by a divide-and-con-

the

which will aid in

programs

,

these

cases

areas

which service the indus-

economy
'

some

have bolstered

blast

commented

ing economy must grow in many
directions. Loans totaling $9 mil¬

ness

Industry

pact, steel companies will demand important changes in the

develop¬

require

the operating rate (based on 1947-1949
and production 2,627,000 tons.
ago the actual weekly production was placed at 1,567,000
*97.5%.

production)

programs, the Bank's re¬
will be directed to other

sources

weekly

A month ago

4

page

35

(2439)

1, 1959 annual capacity of

Estimated percentage for this week's fore¬

were

recorded.

Casualties with liabilities of
from

275

in the previous week

,

...

.

,

oorr

$5,000 or more declined to 22 <
and 299 last year. There was a

failures, those involving liabilities under
38 a year ago. Nineteen
in excess of $100,000, as
against 30 in the preceding week.
Retailing accounted largely for the week's downturn; the
toll in this group fell to 132 from 161. As well, casualties among
wholesalers dipped slightly to 21 from 26, among construction
contractors to 36 from 50, and among commercial services to 26
from
30.
In. contrast, manufacturing failures remained at 44,
the same as last week. No industry or trade group had as many
failing concerns as in the similar week of 1958.
(
Geographically, the week-to-week decrease was concentrated
in five of the nine major geographic regions.
The toll m the
Pacific States fell to 55 from 73, in the South Atlantic States to
slight dip among small

.

$5,000, to 32 from 36 a week earlier and
of the failing businesses had liabilities

Continued

on

page

36

.

S6

The Commercial and Financial Chronicle

(2440)

Continued jrom page 35

16 from

33, while milder declines prevailed in the South Central
Regions.
On the other hand, failures remained
or slightly above the
previous week in New England,
Middle Atlantic, East and West North Central States. In six of the
nine regions, business mortality was lower than a year ago; only
the New England and West North Central States reported in¬
creases from 1958, and the Mountain States held steady.

Wholesale Food Price Index Hits Lowest Level

I*--'
k

*

By JOHN DUTTON

So Far This Year

their

ments.

The Wholesale Food Price Index, compiled by Dun & Brad¬
street, Inc., declined to $6.10 on May 19, the lowest level so far
this year.
It was fractionally below the prior 1959 low of $6.11
net on March 3. The current level was 0.7% below the prior week's
$6.14 and down 8.3% from the $6 65 of the corresponding date a
year ago.

Social

Up in price this week

flour, wheat,
Lower in price

were

oats, sugar,
barley,

corn,

Security

pay¬

There is still much ignor¬

available to both married and

are

Many

self-employed

well

as

are

of the

unaware

beef, hams, bellies, lard, coffee, and steers.

anced

retirement

The Dun & Bradstreet, Inc. Wholesale Food Price Index repre¬
sents the sum total of the price per pound of 31 raw foodstuffs and
meats in general use.
It is not a cost-of-living index. Its chief
function is to show the general trend of food
prices at the whole¬

Kalb, Voorhis & Co., 25 Broad
Street, New York City, who pub¬
lish

bulletin entitled the

stood

week

most

grains, coffee, lambs, hogs, and
May 25 the Daily Wholesale Commodity Price Index
at 275.87 (1930-32-100), down from the 276.52 of the
prior
and the 281.01 of the corresponding date a
year ago.
On

Reports of favorable weather conditions in growing areas and
slackening in both domestic and export buying resulted in a
decline in most grain prices this week. Despite continued
light
country marketings, purchases of wheat fell noticeably and prices
were down moderately".
There was an appreciable decline in rye
prices during the week, reflecting lower trading.
a

Although offerings

light and trading

were

steady, corn
prices slipped fractionally this week. Influenced by a decline in
turnover, oats prices were moderately lower. There was a notice¬
able dip in export buying of oats. Soybeans prices remained close
to the prior week, and both domestic and
export volume was
steady.
was

While the buying of flour was limited this
week, prices were
fractionally higher. Buyers were waiting for a new crop offerings
before making replacements.
Wholesalers reported a decline in
rice stocks and buying picked
up; rice prices were unchanged
from the prior week. Export
buying remained at a high level and
negotiations were under way for selling more rice to
Pakistan,
Egypt and Argentina.
+ :+,,'■•

tration

trict

to

of

each

Offices.

their

quiet, but prices

declined in the middle of

cocoa

of the
A

was

period; prices

moderate

decline

were

steady.
the week, but picked
were

in

which

their

in coffee

prices

as

buying

was

ap¬

preciably lower.
Cattle

the

them

protects

they

65.

was

in

Chicago declined this week and tradingmoderately; prices on steers dipped somewhat from the

down

prior week.

There

substantial increase in the salable
supply
of hogs, but buying slackened and
prices were somewhat lower.
A fractional decline in lamb
prices occurred and

moderately.
slightly.

Prices

was a

receipts were
In contrast to the dip in hog prices, lard
prices

down
rose

cotton

the New York Cotton
Exchange finished
level as a week earlier.
Reports that domes¬
tic consumption of cotton *ose somewhat in
April helped stimulate
on

the week at the

on

same

slight rise in transactions during the week. U. S.
exports of cot¬
ton during the week ended last
Tuesday amounted to 50,000 bales
compared with 113,000 during the comparable week a

a

year ago and

.

57,000 in the prior week. Exports for the current season,
through
last Tuesday came to 2,274,000 bales, compared with
4,624,000 in
the corresponding period last season.

•

maximum

a

retirement

would

Although

to-year gains

in

apparel

and

furniture

offset declines in appliScattered reports indicate
that sales of new
passenger cars were sustained at a
high level
and marked gains over last
year remained,
'.v.;
and some other

^

household goods.

total d?llar volume of

May 20

3%

was

years

to

7%

retail traide in the

higher

than

a

year

spot estimates collected by Dun &

ago,

that

and

to

The

This is the equivalent of
$29,000 annuity payable for life

of

the husband at 65.

Value

reduction

in

Under de¬

these

would

work

would

not

make

good

invest¬

equivalent
commit

a

large percentage of
investments to other types

their

fixed

would

a

income

be

investments

worth

less in

the

The

table

above

would

much

have

stock

be

to

how

There

in

is

bulletin

that

can

week

ended

according to
Regional esti¬

Bradstreet, Inc.
mates varied from the
comparable 1958 levels by the following
percentages: Mountain +8 to +12; East North
Central +5 to +9*
West North Central
-+4 to +8; Middle Atlantic and Pacific

living.
saving

Bonds, savings accounts,
and

loan

shares

fall

into

this

category.
Although there is
nothing fundamentally wrong
with such investments, putting all
of one's
ments

dollars into

is

such

tantamount

to

invest¬

betting

LOSS

ple

With

IF

of

why

.balance

common

their

deflationary
vestment

portion

of

their

planning.

investors

many

in

stocks, mutual funds, and a
aggressive investment pro¬
gram, the problem is to obtain

mon

more

their
to

a

vital
that

interest

and

the

open

discussion with them

door

of this

matter.
you

We would suggest
write Kalb, Voorhis for

^

South Atlantic +2

to +6; East South Cenral +1

+ 5; New England and West South Central

to

—1

to +3.
the weekend in
many areas stimulated
Summer coats and suits and
volume in cotton
dresses, sportswear, and lingerie was sustained at a
high level.
Theieweie moderate gains over last
year in men's apparel, es¬

Cool

interest

weather

in

Midwest

Stock

Sales

wear.

a

year

last

Ex¬

dinette sets.

less

of

children's

merchandise

ago.

remained

and

well

a

Form Herbert Young Co.
Herbert Young & Co., Inc. has
been formed with offices at 70
Pine
gage

than

a

over

a

ficers
are
Herbert
D.
Levine,
President, and C. Y. Levine, Sec¬
retary. M, Levine was formerly
with Peter Morgan & Co.

year ago.

Over-all

principal

food

declines

sales

in

earlier, sales

year

ago.

were

Interest

below expectations and
slightly
in television

sets,

refrigerators,

and lamps lagged behind both the
prior week and last year.
The
call for floor coverings and
draperies slipped from the high levels
of the prior week and were
down slightly from the
similar 1958




Department store sales
the

Federal

Reserve

increased 9%

from

goods,

the

frozen

prior

foods,

week,

and

with
dairy

which

been

has

other facts have

create

climate

a

to

favorable

just makes good

us.

to give
emphasis and

sense

conceivably, that
always exist.

condition

may

not

Form Mid-West Sees.
(Special to The Financial Chronicle.)

LITTLETON,
Col.— Mid-West
Securities Corp. has been formed
with
to

offices

at

3186

West

Grand

in the securities busi¬

engage

Officers

are

Alfred

L.

Lan-

drith, President; Lester E. Jones,
Vice-President; and John M. Swe¬
ney,
were

Secretary-Treasurer.
All
formerly with Western Se¬

A. J. Taranto Formed

May 16 Week
on

a

SACRAMENTO, Calif.

country-wide basis

Board's Index

for

the

week

as

taken from

ended

May

16,

above the like period last year.
In the preceding
an increase of 14% was recorded. For the four

week, for May 9,
weeks ended

one

to

curities Corp.

For

over

through FNMA, rising
prosperity—these and a

as

combined

Nationwide Department Stores Sales Up 9%

above

in air conditioners
and fans matched

slackened

canned

products.

neck¬

chairs, upholstered chairs, and

Although volume

*

St., New York City, to en¬
in a securities business. Of¬

Sales promotions helped purchases of linens climb moder¬

^

week

such

general

It

over

Furnituie stoies reported the
most noticeable increases
year in outdoor tables and

that of

ately

emotional
and
sub¬

tremendous

hundred and

ness.

period.

women s

pecially in lightweight suits, straw
hats, sports shirts

the

that fact the proper
evaluate it for what it is because,

fixed

income savings accounts today are
also prospective investors in com¬

that

forget

sidies which have come our way,

change.

Suggestion
Since

not

looking to the future. For

upsurge of feeling for more
better housing, the indirect

Sweney Cartwright

the

let's

.

.

the times and conditions
generally have been, in our favor.
of hous¬

(Special to The Financial Chronicle)

of

home

20 years

ing,

With

of

field

The war-created shortage

bers

fulfilling

fact in

in¬

the need for a
minimum guaranteed
income, it
permits broader diversification in

curity

extent—and

invest¬

with equities and
Security as the anti-

COLUMBUS, Ohio—Stephen H.
Cartwright has been added to the
staff of Sweney Cartwright & Co.,
Huntington Bank Building, mem¬

Se¬

.

more peo¬

programs

Social

use

THE

Social

should

ment

TREND CONTINUES TO BE IN¬

FLATIONARY.

salesmen

them demonstrate

that the current price structure is
going to crumble, AND RISKING
CONSIDERABLE

by

the

in

now

financing will not lessen but
will
increase.
It's
up
to us to
make the most of it. Certainly the
lush years that we have known
in the fairly recent past are not
likely to return
because, let's
face it, we've been lucky to an

stocks and Mutual Funds to help

Coast

"1~c

have

be

of further increases in the cost of

com¬

a

loan

excellent mate¬

some

this

prepare

society — that is essen¬
tially what our system is—and
for competition, it is my opinion
that
the
fierce competition
we

year

used

and

We live in

petitive

saved

paying $190.50 monthly.
rial

would

I

but

ourselves

of

for the future.

shows

at 4% compound in¬
(before taxes) to age 65 to
accumulate $29,000, the value of
a
straight life
annuity
(male)
every

that

event

V 1,392

terest

$29,000 annuity
Social Security to continue

under
to

of

936

15

have

I

that we have reached
a
maturity which indicates that
this is a most appropriate time for
each and every one of us to take

497

20

problems I've men¬

also suggest

669

50

The point is also well taken that

30
25

45

all such fixed income investments.

it

378

35

of his position in
satisfactorily meets

view

economy,

observation

$293

35

40

monthly

purchasing power
the advantage of

to

Annual

40

mortgage
completely

speaking—as I have tried to indi¬
cate—our record has been good,
our role in the economy is secure
because it is a necessary one. That
would seem to be the principal

Required

25

a

tioned, is prepared to offer a wide
and comprehensive
mortgage1
banking service as contrasted to
a limited operation—I believe this
man has a good future. Generally

Savings

to Age

the

that

takes

and solves the

to

Security

30

payments and the resulting bene¬
fits in increased

Social

No. of Yrs.

Age

(should it come) it is well
argued that there would unlikely
a

of

of Savings

Starting

flation

be

the

future.

a

out for this factor.

Far Term view of
ahead. Personally,

a

be

who

realistic

inflationary
influences
they
continue
in
the

should

month.
a

tend

for

may

banker

other savings
will

eye

convinced

I'm

wife

$190.50

consumer

buying remained close to the prior week
over-all retail trade was
up appreciably from the similar
1958
period, when recession reports discouraged
many shoppers. Year-

**

be

what

positively toward both the
long-term growth of the country

For

covered worker and his

to

your

an

Looks Into Far Term

Now,

income.

investment policy.

Retail Trade Exceeds Year Ago Volume

%

the

country, seeing how this busi¬
of ours operates every day,

beginning to notice too—and they
don't like it. So, put this phase of
your business on the clinic table
and do something about it.

stone

react

example,
payments possible

are

at

of

receipts

Security
against the

portion of

investments

to

Social

dangers of deflation in
after

able

ment sense for those who have the

Purchases of

up at the end
down fractionally from the prior week.

occurred

dis¬

over

it. Too many of us aren't looking
ahead, making little or no provi¬
sion for continuity. Investors are

planning.
diversify

retirement

suc¬

travels

my

We're weak here, let no one deny

Through the use of your social
security you can devote a reason¬

closes that all men covered by the
Act have an important investment
asset

investment

your

cessful

Dis¬

bulletin

This

foundation

a

things as

such

management

and

During

I've had

investments
to
protect
against the ravages of inflation. A
diversified, balanced investment
program will assure you of a suc¬

of

584

ness

your

Security
in
Retirement
Planning" which was distributed
by the Social Security Adminis¬

..

Sugar trading

"Use

as

Learn how you can also

interest¬

very

a

developed

ing power," Find out how your
Social Security helps you to pro¬
tect yourself against deflation and
why you should use this excellent
in

"Financial

as

the

mortgage

many

about

plans

cession.

that protects your purchas¬

investment

Social

The general commodity price level slipped in the latest
week,
on

bal¬

a

valuable service for invest¬

a

ment dealers known

ing

Wholesale Commodity Price Index Dips Somewhat
reflecting lower prices

up

program.

Planning" issued

sale level.

steers.

setting

we

making too few long

are

ownership

a

gram

extent to which these benefits can

in

term

ads and by direct mail and

personal basis. Offer an idea
such as "Build a retirement pro¬

those in the higher sal¬

as

too

Fifth,
bankers

reply could be followed
by the sales organization.
on

which

under

system

news¬

those who

The theme should be

individuals

them

were rye,

bulletin could be offered in

the

operate.

investor for retirement. The

an

as

single beneficiaries under the act.

assist

hogs.

copy

paper

concerning the benefits that

ance

aried brackets

cottonseed oil, cocoa, and

the best and it reflects the success
of

from

investment record

of institutional investors has been

of this excellent presenta¬
tion of the average man's position
a

>

Appraisal
Banking

tion to the good

Information Pertaining to Social Security
Can Be Used in Sales Campaign
Everyone is interested in ob¬
taining up-to-date information on
the
benefits
they will receive

14

page

The mortgage contribu¬

serve.

we

even

from

Of Mortgage

Mountain

about

Thursday, May 28, 1959

.

A Critical

Securities Salesman's Corner

The State of Trade and Industry
and

.

Continued

'

r

.

May 16,

a

gain of 8%

was

registered.

Taranto

&

Co.

with offices

at

has
1330

been

—

A. J.

formed

Twenty-first

Street to continue the investment
business

According to the Federal Reserve System department store
sales in New York City for the week ended
May 16 showed a 7%
increase from that of the like
period last year. In the preceding
week. May 9, also for May 2 and April 25 no reports were avail¬

a

able due to the Parcel Delivery Service strike.

•nnrfndu

of

anto & Co.

Parker, Wester, Tar¬
Anthony J. Tatfanto is

general partner in the firm, and
H.

Theodore
.

Ruebling,

a

limited

I

'

.

Volume

189

Number 5850

.

.

The Commercial and Financial Chronicle

.

37

(2441)

The

Indications of Current

Business Activity

week
Latest

american

iron

and

steel

institute:

and castings

—May 31

month available.

Month

Week

§94.3

or

month ended

or

Previous

Week

Indicated Steel operations (per cent capacity)
Equivalent to—
Steel ingots

following statistical tabulations

latest week

-May 31

output—daily average (bbls.

r

§2,671,000

*2,644,000

May 15

7,177,525

7,200,225

May 15

!i7,G84.000

May 15

Crude jwhs to stills—dally average
Gasoline output
(bhls.)
Kerosene

output

26,821,000

7,722,000
27,003,000

(bbls.)

(bbls.)

May 15
output (bbls.)
May 15
(bbls.)
1
May 15
Stocks at refineries, bulk terminals, in transit, In pipe lines—
Finished and unfinished gasoline (bbls.) at
May 15
-V Kerosene
ibbls.) at
May 15

58.1

2,627,000

1,567,000

Distillate fuel oil

v«Residual fuel

,

*'V

association

(bbls.)

at

of

american

civil -engineering
•w

construction

of

25,200,000

1,759,000

1,936,000

1,881,000

11,995,000

12,833,000

6,517,000

6,410,000

6,558,000

206,616,000

203,419,000

212,742,000

198,307,000

22,513,000

21,616,000

20,306,000

89,639,000

87,655,000

19,846,000
81,518,000

6,240,000

6,517,000

6,410,000

6,558,000

80,771,000

694,380

583,186

677,398

633,546

561,040

590,311

■

577,461

497,626

May 21

$468,200,000

$415,600,000

$314,300,000

$588,107,000

May 21
May 21

304,200,000

190,400,000

May 21

145,900,000

225,200,000
168,200,000

141,200,000
173,100,000
126,600,000

241,161,000

164,000,000

May 21

18,100,000

57,000,000

46,500,000

140,040,000

-Private construction
—Public construction
State and

—

municipal

Federal

■

346,946,000
206,906,000

coal output

(u. s. bureau of mines):
Bituminous coal and lignite (tons)

jjay

system—1947-49

average

jg

8,185,000

*8,350,000

8,020,000

7,318,000

—MaylG

Pennsylvania anthracite (tons)
department store sales index—federal

324,000

318,000

363,000

385,000

reserve*

100

=

Electric output

-

May 36

(in 000 kwh.)

137

May 23

(commercial and

industrial)

—

dun

158

126

132

May 21

(e.

&

m.

j.

•Electrolytic copper—
Domestic refinery at
Export refinery at
Lead (New York) at
tZinc

(delivered)

Zinc

(

300

6.196c

yvlyy

6.196c

$66.41

$66.41

$34.17

$33.83

$34.83

*

.y y,.

•';Ift

•'•rh •••'

^

337

\

5.967c
•■I

$66.49

$34.00

31.150c

31.175c

31.200c

24.150c

May'20

28.850c

28.750c

28.550c

21.750c

May 20
May 20
.May 20

12.000c

12.000c

,11.155c

11.500c

11.800c

11.800c

11.500c

11.500c

11.500c

10.500c

-May 20

11.000c

11.000c

11.000c

10.000c

...

1

at

primary pig. 99.5ft )

at

10.820c

11.300c

24.700c.

24.000c

103.000c

102.125c

May 26

83.73

83.29

84.33

96.19

86.78

37.18

88.67

90.34

91.77

36.38

86.91

88.81

82.15

-82.90

—83.66

May 26
May 26

85.93

86.24

87.59

91.62

85.59

86.38

88.27

Group

Utilities

Public

89.23

—

..

Group—

Industrials Group

U. -S. Government Bonds

88.67

89.09

90.77

95.77

90.20

consumption
(barrels)

AMERICAN
Orders

4.14

4.03

Grtfup

4.51

Utilities

Public

Industrials
moody's

4.41

4.39

4.51

4.48

4,

4.29

3.79

4.GC

4.64

4.50

5.01

4.95

4.89

4.71

4.69

4.59

4.30

23,232,000
21,475,000

*350,660,000
35,136,000

3,736

10,795

278

3,741

2,797

5,163

freight

new

cars

cars—i
...

order

on

and

4.74

4.68

4.54

3.89

4.51

4.47

4.40

3.79

May 26

.883.4

386.2

391.7

403.2

37,066,000

.

undelivered
;

OF NEW YORK—As

of

35,479

•v ?

32,908

'"»(>'

r

$226,367,000

I1!-

$291,951,000

$278,127,000

$278,125,000

347,864,000
13,793,000
33,842,000

329,239,000

415,548,000

:

——$204,126,000

OUT¬

BANK

l_—

'

—

shipments

35,487
Ml

April 30:

—

Domestic

295,145,000

INSTITUTE—

Exports
—

i

.

11,795,000

12,241,000

70,099,000

403,568,000

77,792,000

—

Domestic warehouse credits—
Dollar exchange

111,173,000

130,730,000

263,283,000

253,314,000

239,205,000

Based

on
goods stored and shipped between
foreign countries L'z—
—

BUSINESS

INCORPORATIONS
STATES—DUN

INC.—Month of
COAL

-

'

—

UNITED

—$1,028,525,000 $1,053,747,000 $1,479,417,000

(NEW)

&

'

THE

IN

BRADSTREET,

April

(BUREAU

OF

'18,119

11,329

108,423

EXPORTS

17,554

165,987

92,520

121,260

129,603
81,556

15,503

33,917

MINES)—

Month of March:
U.

S.

exports
tons)

of

Pennsylvania

anthracite

(net
To

North and

Europe
Asia

To

South

Central America

tons)

(net

(net tons)

—

(net tons)

.

45,296

10,610

—

2,729
•

America

(net

tons)

COMMERCIAL
ERAL

RESERVE

As of April

400

"2OO

$822,000

$083,000

112,468
137,490

*117,530

97,598

140,928

120,467

135,233

—

PAPER

22

•

124,220

81,930

74,323

Undesignated

4.02

May 26
index

36,237,000

April:

of

Imports

4.61

May 26
May 26

Group

24,000

28,664,000

export

DEBUS—BOARD OF GOVERNORS OF
THE FEDERAL RESERVE SYSTEM—Month
of April (000's omitted)

3.56

4.36

:

May 2G

Group

commodity

for

CAR

190,651,000
22,697,000

37,000

36,478,000

and

26,660,000

29,467,000

_

213,372,000

223,926,000

25,041,000
50,000

„

250,623,000

201,435,000

2,628,000

domestic

(end of month)

4.00

—

—

4,448,526

226,526,000

(barrels)—I

(barrels)—

RAILWAY
of

Backlog

2.82

4.G2

.

Railroad

stocks

all

To

4.10

4.65

-May 26

Baa

5,532,991

6,524,374

295,099,000

Indicated

99.36

May 26

A

11,567,745

(barrels of 42 gal¬

gasoline output (barrels)
Benzol output (barrels)
Crude oil imports (barrels)
Refined product Imports (barrels)

$7.32

.May 26

Aa

11,272,000

Natural

99.3G

'

.May 26
May 26

—

38,475

INSTITUTE:

INSTITUTE—Month

Domestic crude oil output

To

-Average corporate.
Aaa

PETROLEUM

Total domestic production
lons each)

moody's bono yield daily averages:
.

STEEL

11,847

February:

97.78

38.67

..

»Railroad

r.

•ft

AMERICAN

103.13

Aaa

98,434

8,117,688

AND

Month of March

Total

Average corporate—

Baa

IRON

ingots and steel for castings produced
tons)—Month of April
Shipments of steel products
(net
tons)—
(net

averages:
—

224,890

67,752

IIIIIIIIIIIIIIIIIH

.

Steel

96.07

90.0G

May 20

daily

275,218

16,207
329,668

II—III

washer-dryers

~

Dryers
AMERICAN

444,309

11,507

274,372

unit

(domestic)

Combination

284,200

353,631

heme

sales

27,200

301,300

MANUFACTUR¬

ASSOCIATION—Month of April:
laundry appliance factory

Total

94.500c

—May 26

prices

U. S. Government Bonds
*

24.700c

103.250c

at

(New York)

bond

24.700c

May 20

May 26

moody's

May 20

May 26

tin

ERS

LAUNDRY

8,034,700

29,200

276,700

(M therms)

HOME

8,346,100

9,042,000

26,900

DOLLAR
ACCEPTANCES
STANDING—FEDERAL RESERVE

May 26
May 26

-Straits

•,

gas sales

9,372,500

8,651,500

BANKERS'
,

ft
May 20

.'

__

Ago

BANK

6.196c
$66.41

May 19

quotations):

lEast St. Louis) at

Aluminum

259

May 19

-('St. Louis) at

Lead

11,316,000

12,538,000

May 19

'

»

12,684,000

prices:

(per lb.)
z
Pig iron (per gross ton)
-Scrap steel (per gross ton)prices

Year

Month

8,955,100

New freight cars delivered

Finished steel

metal

12,931,000

&

;

iron age composite

Mixed

AMERICAN

Month

rradstreet, inc

*

gas sales (M therms)
Natural gas sales (M therms)
Manufactured gas sales (M therms)

Decrease

edlson electric institute:

failures

Total

ol'

news-record:

'*•

of that date:]

Previous

ASSOCIATION—For month of

Washers

engineering

—

are as

Month

AMERICAN GAS

11,650,000

6,240,000

MaylG
cars)—MaylG

Totai. D. S. construction

-J

7,479,000

railroads:

Revenue freight loaded (number of cars)—
Revenue freight received fTom connections (no.

-u

6,261,885

1,824,000

May 15
—May 15

oil (bbls.) at

7,133,025
7,856,000
27,491,000

12,335,000

Distillate fuel oil

Residual fuel oil output

-

of quotations,

cases

Ago

92.8

of

gallons each)

•

-

in

or,

either for tlMg

are

Latest

american petroleum institute:
42

that date,

March:

(net tons)

Crude oil and condensate

Dates shown in first column

Year

Ago

*93.4

on

production and other figures for the

cover

82,952

251,099

OUTSTANDING—FED¬

BANK

NEW

OF

YORK—

30 (OOO's omitted)

COPPER INSTITUTE—For

month

of

$919,000

April:

Copper production in U. S. A.—
Crude (tons of 2,000 pounds)
Refined (tons of 2,000 pounds)—

—

Deliveries to fabricators—

national paperboard association:
Orders received

...

(tons)
(tons)

Production

Unfilled orders

(tons)

96

525,874

287,889

323,387

94

485,085

^

240,015
269,356

95

348,331

110.43

May 22

•

AVERAGE

=

110.61

110.98

109.87

bers,

transactions for account of MEMExcept odd-lot dealers and specialists
which registered—

May
May

on

1,540,280
355,920

2

2,639,570

2,647,490

1,274,380
1,630,300

376,270

381,410

45,100

80,100-

17,400

320,090
23,130

400,250

355,270

370,220

445,350

435,370

387,620

J

;—•

.May
May

709,890

694,710

669,645

579,159

104,640

133,250

85,830

158,240

May

862,515

875,100

May

967,155

1,008,350

633,399
719,229

887,280

-

.

f. '

.

„

729,040

Total round-lot transactions for account of members—
Total
,'nc

•

—

Total

sales

608,810

3,678,360
659,450

3,556,345

2

.May

sales

2

3,443,265
4,052,075

3,431,760
4,091,210

3,078,209
3,575,479

.May

—

2

3,814,990

2

497,270

2,439,529
537,290
2,308,090
2,845,380

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

DEALERS

LOT

-*

liXCIlANGE
Odd-lot

sales

-Dollar

...

AND

SPECIALISTS

SECURITIES

by dealers

ON

n.

y.

value

•-

-

2,297,540
$138,508,521

1,809,526
$100,G03,462

$55,162,385

1,886,225

1,967,040

1,629,361

1,111,269

7,203

8,809

18,467

1,092,802

1,268,858

—May

1,879,022

1,958,231

$102,481,736

$111,918,848

$84,533,142

$46,921,729

May

—

6,767
1,622,594

465,730

529,790

435,070

323,620

sales by dealers—

May

purchases by dealers—Number of shares

—

4*G5~730

May

Other sales

exchange

701,140

529/790
692,910

4*351670

3231620

606,790

490,220

round-lot

Short

737,730

May

—

672,960

2

37,650,670

17,619,350

580,590
15,961,310

2

13,323,630

13,357,130

16,541,900

343,230

12,029,740
12,872,970

u. s. dept. of

Commodity Group—
-AU -commodities

May 19

119.5

*119.7

119.8

119.3

May 19

-AH commodities other than farm and foods

*90.7

92.2

97.3

107.7

*107.8

107.9

113.0

May 19

Meats

90.6

May 19

foods

102.4

102.8

102.8

*128.1

128.0




:

—

ERNORS

*40.2

41.0

*40.8

39.5

*39.5

37.7

*$2.22

$2.11

*2.38

2.25

1.99

1.94

.

38.3
38.8

RESERVE

FEDERAL

THE

OF

SYSTEM—1947-19=100—Month

Seasonally adjusted
Unadjusted

of

April:
149

—

147

126

150

:—

-—

CONDITION—CROP REPORTING

RECT

149

127

BOARD

92 (

84 ft

GUARANTEED

8. A.—Month
—

IN DI¬

TRANSACTIONS

MARKET
AND

OF U.

SECURITIES

of April:

—

$2,104,600

—

IIHHI-III.-

$62,216,800

$283,000,000

$288,000,000

$280,000,000

285,353,359

282,034,279

275,057,407

118,760

93,879

$285,459,9G4

$282,153,039

$275,151,287

419,708

420,743

433,318

$285,040,255

$281,732,296

$274,717,969

2,959,745

G,2G7,703

5,282,030

$285,459,964
5,969,072

$282,153,039
4,438,286

$275,151,287
6,487,218

$279,490,892

$277,714,753

2.824ft

purchases

$43,951,000

10C,604

Net

2.801ft

$268,664,069
2.679 ft

U. S. GOVT. STATUTORY DEBT LIMITATION
—As of April 30

Total face amount
any

(OOO's omitted):
that may

be outstanding

time

—-—

Outstanding—
Total

gross

Guaranteed

public debt
obligations not owned by the

guaranteed

—

outstanding public debt obli¬
gations not subject to debt li^P/ation
Grand

total

outstanding
Balance face amount of obligations,

issuable

authority
GROSS DEBT DIRECT AND

STATES

GUARANTEED—(OOO's

125.2

May 19

$Includes 377,000 barrels of foreign crude

pound

—

omitted):

115.4

runs.

127.9

§Based

on

new

annual

capacity of 147,633,670 tons
as ef Jan. 1, 1959, as against Jan. 1, 1958 basis of 140,742,570
tons
fNumbev of orders not reported since introduction of
Monthly Investment Plan.
"Prime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
a

40.3

1.99

—

—

Hourly earnings—
All manufacturing
Durable goods
Nondurable goods

UNITED

products

cent

87.30
73.14

2.39

h—

goods

under ubove

-

one-half

$80.81

*97.10

*78.61

$2.23

——

goods

obligations
2

May

♦Revised figure.

'$89.24

97.99

78.61

.

—

Deduct—other

—May

wholesale prices, new series
labor— (1947-49 = 100):

Processed

$89.87

55,254,746

OF

———

!—.

Total gross public debt and

sales—

sales

Other sales

Farm

40,987,429

$811,224,000

April:

manufacturing

Durable

Nondurable

sales on the n. y. stock
exchange commission

Total sales

-

All

securities

jhfor account of members (shares):
Total

•

52,461,149
$885,725,000
56,304,591

Hours-

at

sales

total round-lot stock

DEPT.

—.—

Nondurable gcods —

Net sales

Number of shares—Total sales.

Round-lot

$123,309,784

May
May

value

-Short

2,197,339

May

—

May

other sales

customers'

Round-lot

S.

U. S. DEPT. OF AGRICULTURE—As of May 1

May
——

-Customers' short sales

Dollar
»

of

51,247,075
$872,315,000
56,367,429

HOURS—WEEKLY

AND

ESTIMATE —U.

LABOR—Month

TREASURY

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
,-

EARNINGS

Weekly -earnings—
All manufacturing
Durable goods

RYE

STOCK

(customers' purchases)—t

——

-

—

EXCHANGE COMMISSION

shares

•Number of
-

—

—————

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
.May
.May

purchases

Short

Other sales

customers—

ultimate

to

—

AVERAGE

327,800

the floor—

purchases

INSTITUTE—

sales

of

February (000's omitted)
Revenue from ultimate customers—month of

304,670

.May

sales

427,870

.May

Other sales

Total

394,040

2,074,590
2,468,630

2,505,290

.May

Other transactions initiated off
-

446,100

2,201,390

2,607,380

.May

—

Total

459,070

2,180,500

the floor-

Total purchases
Short sales

•f-

2,677,230

2

May
initiated

2
2

May

sales

■in!

Other' transactions

Kilowatt-hour

(tons

J—:

Number of ultimate customers at Fob. 28

purchases
Short

(tons of 2,000 pounds)

EDISON ELECTRIC

FACTORY

Transactions of specialists in stocks in

■,

A.

pounds)

January

round-lot
-

S.

of 2,000

Month

oil, paint and drug reporter price index—
1949

U.

Refined copper stocks at end of period

86

448,740

'

May lb

at end of period

832,434
313,894

322,778

J®

activity

Percentage of

In

282,974

—
■

As

of

April

30

General funds

i.
balance

^

bt~
Computed annual rate
WINTER

WHEAT

PORTING

PRODUCTION—CROP

BOARD

U.

S. DEPT.

CULTURE—As of May 1

OF

RE¬

AGRI¬

(bushels)—

956,614,000

1.179,924

\

The Commercial and

(2442)

38

Financial Chronicle

.

.

Thursday, May 28. 1959

.

★ IN DICATES

Securities

Now

Academy Life Insurance Co.
filed 310,000 shares of common stock (par 30
cents) to be offered for subscription by common stock¬
March 31

in

Registration

selling stockholders. Office—-919 No. Michigan Ave., Chi¬
cago, 111. Underwriter—Merrill Lynch, Pierce, Fenner &

Smith, Inc.

•

135

^

holders

the basis of 0.525 shares of additional stock

on

for each share held of record

April 24, 1959 (for a 20day standby).
Price—To be supplied by amendment.
Proceeds—For additional working capital.
Office—405
Exchange National Bank Bldg., Denver, Colo. Under¬
writers—Boettcher & Co., Inc. and Bosworth, Sullivan
& Co., Inc., both of Denver, Colo.
Accurate Specialties,

Inc. (6 8-12)
filed 95,000 shares of common stock (par 10
cents). Price—S2.50 per share. Proceeds—For additional
May

12

equipment, operating

expenses, working capital and pay¬
ment of notes. Underwriters — Milton D. Blauner & Co.,
Inc. and

Stanley Heller & Co., both of New York. Offer¬
ing—Expected in four or five weeks.
•

Advanced

Research

American

Nov. 13 filed

Buyers Credit Co.
5,uu0,000 shares of common stock, of which

4,545,455 shares of this stock are to be offered for public
jale at $1.75 per share.
[Shares have been issued or are
.ssuable under agreements with various policy holders
tn American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them
:o purchase stock at
$1.25 per share.-Sales personnel;
aave
been given the right to purchase stock at $1.25
per share up to the amount of commission they receive
jn stock sales made by them.]
\ Proceeds—For the opera;ion of other branch offices, both in Arizona and in other
jtates. Office—2001 East Roosevelt, Phoenix, Ariz. Unierwriter—None.
•

American Commercial Barge Line Co.

(5/29)

Associates, Inc.
Dec. 1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
capital. Office — 4130 Howard Ave., Kensington, Md.

April 30 filed 400,000 shares of common stock (par $3).
be supplied by amendment.
Proceeds — To
selling stockholders.
Office—Jeffersonville, Ind.
Un¬
derwriter—F. Eberstadt & Co., New York.

Underwriters

•

and

Wesley Zaugg & Co., Kensington, Md..
Williams, Widmayer Inc., Washington, D. C. Stop
—

order proceedings

instituted by the SEC.

of common
stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future.
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif. Underwriter—Lester, Ryons
& Go., Los Angeles, Calif. No public offering expected.
Alaska Mi«es & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock (par $1),
of which 1,000,000 shares are to be offered publicly and
are

to be reserved for sale to the holders

of 6% debentures due 1962 issued by
Minerals Ltd., the company's parent

DeCoursey-Brewis
(payment for the
shares by such debenture holders may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares
purchased
for cash

for the 6%

or

debentures of the parent at the

rate of

one for each five shares purchased. Price—$1.25
share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment.

per

Allied Television

Film Corp.
(letter of notification) 150,000 shares of com¬
Price—At par ($1 per share).
Proceeds—
Forworking capital. Office — 2700 Wilshire Boulevard,
Los Angeles, Calif.
Underwriter—^Alkow & Co., Inc.,
Beverly Hills, Calif.

April 28

mon

stock.

Alsco, Inc. (6/15-19)
.-"/V.-A/AA
May 15 filed $4,000,000 of 5J/2% convertible subordinated
debentures

due

June

1, 1974. Price—100% of principal

amount. Proceeds—To reduce short-term

American Commercial Corp.

(6/15)

A

May 14 (letter of notification) 250,000 shares of preferred
stock

Alaska Juneau Gold Mining Co.
Dec. 29 filed 640,660 outstanding shares

431,200 shares

Price —To

bank

loans; to
liquidate the balance of loans from the Estate of Dora
Sugar Weinstock advanced for construction purposes;
to prepay an instalment on funded
indebtedness; to re¬
deem all outstanding 1,089 shares of $100
par preferred
stock of a subsidiary; for
capital

(par 50 cents) and 50,000 shares of Class A com¬
mon stock
(par 10 cents) to be offered in units of five
shares of preferred stock and one Class A common share.
Price—$6 per unit.
Proceeds — For general business
purposes. Office—744 Broad St.;> Newark, N. J. Business
—To finance accounts receivable.

Underwriter—Phoenix

Securities, Montclair, N. J.

1

c

A '

-

American Hospital Supply Corp.
April 20 filed 20,610 shares of common stock (par $2) to
be offered in exchange for common stock of Massillon
common

2020

on

for

one

the

basis

share

of

nine

shares

Massillon

of

Ridge Avenue, Evanston, 111,

of

American

Office—

common.

Underwriter—i-None.

* American Investors Fund, Inc., Larchmont, N. Y.
May 25 filed (by amendment) an - additional 100,000
shares of capital stock.
Price—At market.
Proceeds—
AAA/

For investment.

American

Investors

Syndicate,. Inc.
(letter of notification). 100,000 shares of com¬
(par 10 cents). Price—50 cents per share.
Proceeds—For operation of an ^apartment hotel. Office

Feb.

24

mon

stock

913

International

Louisiana.

Service, Inc.

derwriter—Amos Treat & Co., Inc., New
York, has with¬
drawn as underwriter. Change in Name —

Formerly

States Telemail Service, Inc.
Petroleum

&

Natural

26

filed

1,000,000 shares of capital stock, of
which 700,000 shares are to be offered
publicly in the
United States, and 300,000 shares in Canada.
Price—Re¬
lated to the then current market
price on the Canadian
Stock Exchange (31 cents
per share on March 16). Pro¬
ceeds—For properties,
drilling costs, working capital and
general corporate purposes.
Office
303 Alexandra
—

Bldg., Edmonton, Canada. Underwriter—None
States; Forget & Forget in Montreal, Canada.

in United

American Asiatic Oil
Corp.
Nov. 24 filed 100,000,000 shares of
capital stock. Price—
Two cents per share. Proceeds—To
selling stockholders.

Offlce—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter
Gaberman &
Hagedorn, Inc., Manila. Republic of Philippines.
—

American Bakeries Co.

May 19 filed 60,000 shares
Price—To

be

supplied by

(6

17)

of.

Price—30 cents per share.
and

development

program.

Proceeds—For explora¬
Office — 2100 Scarth

Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
ir Anchorage Gas & Oil Development, Inc.
May 27 filed 450,000 shares of common flock, part of
which will be offered, at a price of $1.50
per share, to
stockholders of record June 1, 1959, in the ratio of one
new

Atlantic

Research

(6/1-5) A

Corp.

110,000 shares of

shares

100,000

to

common

stock, of which

offered

be

publicly and 10,000
sharesvto employees under . company's incentive plan.
Price
To be supplied by amendment. Proceeds — To
are

—

reduce short-term bank loans and to provide equipment
for

development and production of propellant rockets.
Office—Alexandria, Va. Underwriter—Johnston, Lemon
& Co., Washington. D. C.
A *;
■
Australian Grazing & Pastoral Co., Ltd. Ar ;lA
•
13 filed 4,000,000 shares of common stock. Price—

Jan.
At

par (56j/4 cents per share).
Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.

Office—1301 Avenue
Robert Kamon

L, Cisco, Tex.

Underwriter—None.

is President.

/AAA'A/V A/A-/

Automatic Canteen Co. of America
March 2 filed 292,426 shares of common

stock, of which,

the company proposes to issue 126,072 shares to A.M.L
for the latter's property and assets, and the re¬

Inc.

maining 166,354 shares are to be issued upon the exercise
stock options. Underwriter—None. Statement effec¬
March 31.

Automation

Instruments, Inc.
April 27 (letter of notification) 4,584 shares of common
stock.
Price—$6 per share. Proceeds—To go to Lester,
Ryons & Co. as securities fully and finally paid as an

obligation of the company.
Office—401 E. Green Street,
Pasadena, Calif. Underwriter—None, No public offer¬
ing planned.A/, ' •
-/..A:
• Avnet Electronics
Corp.
V '
April 17 filed 175,000 shares of common stock, of which,
75,000 shares are to be offered for the account of certain
selling stockholders. Price—$5.75 per share. Proceeds—
To retire presently outstanding loans, and the balance
will be used for working capital and other corporate
purposes. Offices—70 State St., Westbury, L. I,, N. Y,, and
5877 Rodeoi Road, Lcs Angeles, Calif A Underwriters —
Michael Q. Kietz & Co., Inc. and Amos Treat & Co.,
Inc.,

both

of

New^ York.

Offering—Expected this week.

Ballard Aircraft Corp.

April 17 filed 300,000 shares of common stock (par $1).
Price
$3.25 per share.
Proceeds — To v develop ; and
manufacture aircraft embodying the body lift principle,

share for each three then held.

Underwriter—Weil

Jan. 30

stock

Unsubscribed stock

the
balance of the issue will be offered to the
public and to holders of stock options. Office—134 East
Second Ave., Anchorage, Alaska. Underwriter—National
Securities Corp., Seattle, Wash. *

(letter of notiifcation) 100,000 shares of common
$1.60). Price—$3 per share.
Proceeds—For

(par

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—-Ringsby Underwriters, Inc., Denver 2,

pany.

A-

Basic
March

Atomics

444,246 shares of common stock (par 10
Price—At prevailing market price, in the Over-

cents).

the-Counter Market.

Materials, Inc.
April 9 (letter of notification)
stock

mon

(par

cents).

10

1,200,000 shares of

Price—25

cents

com¬

share.

per

Proceeds—For

mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,
—

N.
•

Mex.

-.

Bausch &

May

8

Lomb

Optical Co.

(6/3)

filed

$8,750,000 of convertible debentures due
1979, to be offered for sifoscription by common stock¬
holders on the basis of $100 principal amount of deben¬
for

tures

expire

each
on

10

shares

June 18.

mon

maturing Dec. 31,

Under¬

selling stockholders.

Basic

ment."-

Hepburn T

Proceeds—To

Underwriter—None.

to

Armstrong, Round Up Heights, Cheyenne, Wyo.
writer—Bruno-Lencher, Inc., Pittsburgh, Pa.

Inc.

filed

5

Jan. 16

(letter of notification) 3,000,000 shares of com¬
stock (par one cent). Price — 10 cents
per share
Proceeds—For mining expenses. Office—c/o

Co., Washington, D. C.

expenses

and

Armstrong Uranium Corp.

&

Preferred Life Insurance Co.

Bankers

Corp. Ltd.

tion

Alscope Explorations Ltd.

•

March 31 filed

Colo.

Gas

ville, Tenn.
March

Office—Caldwell, N. J.
Underwriter
O'Neill & Co., Inc., New York. OfferingExpected today, May 28. - 1
1 '
"J,
working capital.

—George,

(par

Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for
working capital and other
corporate purposes^ Office—Salt Lake City, Utah. Un¬

March 23 filed 745,000 shares of capital stock
(no par),
of which 500,000 shares are to be sold for the account
of the company, and 245,000 shares
by the holders there¬

—

by

Testing Laboratories, Inc. '
166,666 shares of common stock (par 10
Proceeds—For capital ex¬
and general corporate purposes, including

penditures

etc.

Feb. 17, 1958, filed 375,000 shares of common stock

expenditures; and for
Office—225 South Forge St., Akron,
Ohio.
Underwriters
Hirsch & Co. and Bache & Co.,
both of New York; and Equitable Securities
Corp., Nash¬

working capital.

Y.
Underwriter — To be named
Offering—Exoected in two weeks.

St., N.

Price—$3 per share.

cents);

$1).

Amican

ISSUE

—

American Telemail

United

REVISED

April 22 filed

Trade

Mart, New Orleans 12, La.
Underwriter—Assets Investment Co., Inc., New Orleans,

—

ITEMS

Associated

tive

May 21 filed 425,000 shares of common stock, to be of¬
to certain employees of the company and its sub¬
sidiary and affiliated companies.
fered

Co.

PREVIOUS

of

★ American Cyanamid Co.

Rubber

Front

amendment.
•

,

AD DITJON 5

SINCE

Proceeds—To

held on June 2, 1959; rights
Price—To be supplied by amend¬

•>

retire

all

outstanding bank loans
working capital and other

1959, for

corporate purposes.
Underwriter
Securities Corp., New York.

—

Stone

&

Webster

v

• Benson-Lehner
Corp. (6/10)
May 4 filed 89,620 shares of common stock, of which
76,620 shares are to be offered for subscription by com¬
,

of

common

amendment.

stock (no
Proceeds

par).
—

To

Arnav Aircraft

Associates, Inc.
May 14 (letter of notification) 150,000 shares of
stock
repay

common

(par 10 cents). Price—$2 per share. Proceeds—To
certain

stockholders of

mon

record

June

10,

1959,

the

on

basis

of three new shares for each 10 shares then held. Price—

indebtedness, to finance increased inven¬
tories, for working capital, etc. Business—Manufacturers
of

In Chicago and Mid America there are over
1,100,000 stockholders.
They emphasize how investment-conscious this rich market is. Your

advertising in the Chicago Tribune will reach

midwestenters than when

run

in any

other Chicago

more

of these

newspaper.

The

Tribune is read by both
professional buyers and the general public.
Your nearest
Chicago Tribune representative will be glad to give
you

for account

hydraulic fluid line fittings and related products for
the aircraft and missile industries.
Office—32 Industrial

CAPITAL TO INVEST!
securities

$6.75 per share. The remaining 13,000 shares will be sold

detaih.

Ave., Little Ferry, N. J. Underwriter—Hamilton, Waters
& Co., Inc.,
Hempstead, L. I., N. Y. - Associated Bowling Centers, Inc.

THE

WORLD'S




GREATEST

NEWSPAPER

selling stockholders at $7

per

share. Pro¬

working capital and other general
corporate purposes, including research and development;
Office—1860 Franklin St., Santa Monica, Calif.
Under¬
writer—Bear. Stearns & Co., New York.
,

Nov. 24 filed 300,000 shares of 20-cent cumulative con¬
vertible preferred stock
(par one cent) and 50,000 out¬
standing shares of common stock (par one cent). The

Bridgehampton Road Races Corp.
/
Oct. 23 (letter of notification) 15,000 shares of common
stock.(par $1) to be offered for subscription by stock¬

preferred shares are to be offered for public sale for the
of the company and the common shares will
be offered for the account of a
selling stockholder. Price
—To be supplied by amendment. Proceeds—To
acquire

holders of

record

share

each

account

Qlljifago Oribmre

of

ceeds—For additional

new

bowling centers and increase working capital (part
*o be used in
defraying cost of acquisition of stock of
owner of a
Brooklyn (N. Y.) bowling center.
Office—

will
or

for

be offered

Nov.

four
to

part of claims,

1,

1958

shares

current

at

on

the basis of

one

held;-unsubscribed

creditors

the rate of

in

one

payment

share

new

shares

of all

for each $4

of claims
after

To

discharged; rights to expire about two weeks
mailing of offer. Price—$4
share.
Proceeds—

pay

current

creditors.

Addres~

—

P.

O.

Box-506,

Volume

18S

Number

5850

.

.

The Commercial and Financial Chronicle

.

(2443)

Bridgehampton, L. I., N. Y. Underwriter
ing—Has been delayed.
*

None. Offer¬

—

other

.'L,

> -

—None.

Petroleums, Ltd.:,
March 30 filed 1,150,000 shares 6f
capital stock of which
1,000,000 shares are owned by Wilshire Oil Co. of Texas
stockholders and 150,000 shares are issuable
upon exer<}( cise of share purchase warrants, exercisable on or be■;*

fore

Dec.

31,

1960

$5

at

share.

per

Office—630

Avenue, S. W., Calgary, Canada.
id

Brockton Edison Co.

L

7

Eighth

benture bonds

and

term

and for construction

writer— To

determined

Probable
Webster

Bros.

.

be

purposes. Under¬
competitive
bidding.
& Co. Inc.; Stone &

by
Stuart

bidders:

>

Halsey,
Corp.; Kuhn, Loeb & Co., Salomon'
Hutzler and Wood Struthers & Co. (jointly);

Kidder,;Peabody' & Co., White Weld & Co. and Shields
jTi& Co. (jointly)* Eastman Dillon, Union Securities & Co.
Y'Bids—Expected to be received

^p.June 23..V1.,
Yi

•

.p

11

to

up

(EDT)

a.m.

on

Y/Y'YY';;

working capital.

March 25 filed

,

with

*

of

stock

common

certain

will

acquisitions

be

issued

businesses

of

May 29
American

in

Eberstadt

(F.

Bank of

&

shares

DeJur-Amsco
r

.

ISSUE

ju.r—•

Connecticut

M.

Eyllesby & Co.)

Dejur-Amsco Corp.
/.;■/ "4;
(H. M. Bylles.by

Y
Co.)

&

$1,000,000

,

»h>;

■'

•-

Research

Atlantic

(Johnston,

'..on IV

*

Co.)

&

Petroleum

Y

■

Crown Self-Service

•

(Paul

.

Fleming

Co.,

to

Great American

-

(Louis

a!,,,

.

L.

.•>

(C.

and

(P. N.) & Co
(Newhard,

Investment

Ci

Corp

(Offering

Polarad

.>rfk

Kidder,

,A

(Van

w..''

+

Telectro

Alstyne,

Noel

&

Blauner

D.

June

Co.)

2

(Dominick

and

••

" (Etnch

..

& Co.

and

30,000

(Eastman

Dillon,

Union

Securities

&

Co.)

Public Service Electric & Gas Co
(Bids

11

a.m.

(Bids

11

a.m.

3

June
-v v

•

Bausch & Lomb
(Offering

.

Corp.)

by

11:30

I

W

'

(Kidder,

Lester

$25,000,000

Debentures

&

Co.)

Philadelphia Electric Co.
Morgan

dtanlev

Oil

& Co.)

640.306

&

EDT)

Northern

10

&

&




share?

Mississippi

Co.,

$1,500,000

Bonds
EDT)

Y*

$5,000,000

Bond*

to b« Invited)

to

$20,000,000

—Bonds

invited)

$25,000,000

Equip. Tr. Ctfs.

to

be

invited)

$6,000,000

>■

(Thursday)

Co
be

to

June

100,000 shares

General

Beads
Invited)

16,000,000

Precision

shares

June 29
Radar

Design

Inc.

&

1
&

Co.)

Common
$360,000

(Tuesday)

Jersey Central Power & Light Co
(Bids

$300,000

and

Preferred

(Monday)

Plohn

July 14

'

Co.)

(Friday)

Corp

(Charles

Pfd.-Common

Securities)

26

Equipment Corp

(Offering to stockholders—underwritten by The First Boston
Corp. and Tucker, Anthony & R. L. Day) 105,927 shares

(Monday)

Kirkland

to

be

invited)

July 22 (Wednesday)
Power Co. (Minn.)

Hallowell, Sulzberger,

Northern States

$642,213

Bonds

$8,000,000

Common

(Offering to stockholders—bids to be Invited) 714,000 shares

Crosby-Teletronics
(Myron

A.

Corp.

Common

Lomasney

&

Co.)

$843,750

!

Corp.

(Bache

August 4
Common

&

Ideal

Precision

Co.)

Meter

Medearis

shares

300.000

Co., Inc

Plohn

&

Co.)

Industries, Inc
(Amos

Treat &

<-

~

(Wednesday)
Co._

be

Power
(Bide

Common

Debentures
by Emanuel Deetjen

Common
$375,000

shares

Common
Inc.)

Corp

Co.,

Co.)

(Tuesday)

a.m.

June 25

Common
&

&

Gas Co

(Bids

Bache & Co. and Equitable Securities Corp.)

Jenks,

Co.___.

Co.

(Bids

Debentures

Blauner

shares

Co.). 09,620 shares

15

Commercial

Common

143.750

i

Southern Pacific Co

Common

Stearns

4

(Monday)

Plohn

June 24

$1,250,000

200,000

Co.)

...

(Friday)

Smyth

&

Long Island Lighting

Common
&

$5,000,000

Polymers, Inc

11:30

Illinois

(Wednesday)

Peabody

19

Cable

&

(Bids

150,000 shares

Sons)

&

Edison

$25,000,000

Bonds
&

Bonds
EDT)

June 23

Com.

Common

Brown

(Charles

Corp..

$10,000,000

$8,000,000

-

Pennsylvania
.

(Offering to stockhol^-

Bonds

(Thursday)

a.m.

(Charles

(Bids

Compudyne Corp.

Common

*

$4,500,000

Common

16

Bullard

Wire

.

Reiter-Foster

shares

Bonds

invited)

June 22

Brockton

Engineering Co

(Hirsch & Co.;

Fabrex

f

400,000

Co

11

Materials

Jefferson

Debens.

Alsco, Inc.

Common
15,000 shares

Common

■

Inc.)

' ' I

'

(Filor,

$150,000

(D.) & Co., Inc

Dl

-

Inc.)

(Wednesday)

Co.)

&

(Offering to stockholders—underwritten by Bear, Stearns & Co.)

(Milton

17

June

$500,000

Ryons

Co.)

&

(Kidder, Peabody & Co.,

American

'

(Tuesday)

a.m.

(Phoenix

Bonds

Peabody & Co.)

Co.)

$4,000,000

Mohawk Rubber Co
.

\

&

Corp.

(Bear.

sisoonnno

(Offering to stockholders—underwritten by A. G. Becker & Co.)
$5,100,000
r ;
-

Y

Webster

Common

Mansfield Tire & Rubber Co
y

and

S8.750.000

EDT)

&JX1.

&

,

Class A Common

1,406,141

Stone

1

Debentures
Treat & Co.,

Amos

$500,000

Benson-Lehner Corp.

Kaltman

and

Pierce, Fenner & Smith) 60,000 shares

Bids
'

Plastic

Co.)

Podesta

June

Florida Power & Light Co
(Bids

,

Debentures

Co.)

&

Corp

June

Electronic

.

(Tuesday)

to be Invited)

June

Preferred

Podesta

11

Aerojet-General

-

Common
.
« -i jYj

Worcester Gas Light Co

Inc.)

Preferred

shares

Corp

.

Bradford

Corp

(Kidler,

Z____CommoD

710.000

Optical Co

Capital

J. C.
shares

Fennckohl

(Jim)
(Jim)

(Wednesday)

Securities

Electronics
_•

EDT)

stockholders—underwritten

to

tf

7-'.

Walter

$7,500,000

be

Bakeries
Lynch,

$1,500,000

.

Virginia Electric & Power Co...
-

American

Debentures

(Bids

shares

_Debfoiur^t
$50,000,000 „/

EDT)

and

Co

Power

share?

Co.,

to

June

Common

June 9

Land Corp.__
—...Common
/: -(Alkow & Co, Inc ) $4,000,000
' I
Food Fair' Properties Development Inc
.Bonds
•,*

McDowell)

&

Products, Inc
(B.

Florida-Southern

t£Ys.:;

il

Worthington

..Common

Plohn

«fc

(Bids

Common

Co.

&

Inc.

Co.,

&

Common

Marshall Co.)

The

Blosser

Netherlands Securities Co.,
$875,000

Co

(Alex.

152.500

Common

Inc
&
Cop. $1,440,000

Joseph Light & Power Co

(Merrill

(Alex. Brown & Sons)

Schwabacher & Co.)

100,000 shares

shares

162,025

Inc.

Walter

/Civic Finance Corp.____

Co.)

Hirsch & Co.

(Bids

-y.

(Tuesday)

&

United Gas Improvement Co

Corp

Hammill

Thriftimart,

Common

'

Common

America, Inc

(Blyth

St.

$6,103,700

and

(Cruttenden,

Duke

Common

$1,500,000

$200,000

Superior Window Co..

shares

i__... 1

Dominick

&,

Inc.)

.

Y

Corp.)

Reiehhold Chemicals,. Inc

—Class A

Straus.

Co.

(Cruttenden,

SCOO.OOO

Inc.)

75.000

vBurndy Corp

and
&

Common

—

&

sS.rr-,':

•jY ■;

Co..

Staats

R.

of

Haupt & Co.;

Common

200,000

$780,000

Inc.)

,

-

'■

&

Co.

(Shearson,

..Common
shares

Co.

Electronics,

Common

Electronics

(Reynolds

&

June 16

....Debentures

Hammill & Co.)

Superior. Window

shares

200.000

Co.

Common

underwriting)

& Co.,

-

shares

Herold Radio & Electronics Corp

Co.)

$125,000

Spartans Industries, Inc

•

Industries Corp.___l_.Common

Teleflex Ltd

-r-'v

Co.)

&

•

..Common

100.000

Co.)

(Ira

Inc.)

Common

100,000

Debentures

Haupt <te

$298,500

...

Co.)

Bruce & Co.,

(Dresel

v:

lira

$750,000

—

(Richard

,

-j

-frtjv 'j

<fc

&

$750,000

Common

Corp

Peabody

(Uilton
i

Inc.)

Co.)

Corp.

Purepac
...

'■CV1

$1,237 500

Heller

Corp

Precon

40

page

(George O'Neill & Co., Inc.) 210,000 shares

(Joseph Mandell & Co.. Inc. and Robert L. Ferman" & Co., Inc.)

—Common

Industries. -Inc..::_.^.._—

Poly

iX'-v" '•

Co.,

&

Vocaline

r.Common
Stanley

Business, Inc

(Charles Plohn

Corp....

Electronics
■

&

Wertheim

Inc..

$500,000

Corp...

Plohn

by

Mart, Inc.—:

Knox

150,000 shares

Johnson)

h

(William

Co., Inc

shares

on

Debentures-Common

(Monday)t

Inc. and
$237,500

...Common

Reman

Parks

Electronics
(Charles

out.

Inc.)

Salt

*

(H. C.) Oil Tool Co

Wellington

Co.,

Lyon

(Shearson,

132,500 shares

underwritten)

not

Everett

<G.

Nuclear

,

900,000

Pro-

(White, Weld & Co. and J. A. Hogle & Co.) 1,400,000 shares'1

Inc

Equities,

Funds for

....Common

Co.)

and

Multi-Amp Electronic

-

Food

Investors Funding Corp. of New York—__Debens.

T

~1°"

& Co.,

&

6

stockholders—no

to

(Ross,

Common

Corp. of Florida

Securities

(Aetna

'

Land

Class A Stock
Co.)

com¬

Knudson & Co.,

Diego Imperial Corp.—

(Friday)

Securities,

Industries,

(Offering

...Common

Y—

Cook

San

-

Tobacco
(Best

Emery

Co..—-

Towbin

E. Unterberg.

June 5

Blauner &

1

.

shares

Mandell

Co.)

Ctfs.

Debentures

Continental

....

$500,000 ••

100,000

Joseph

Electronics

Hirsvh

Co.)

Tr.

$4,470,000

Specialties,1 Inc

(Milton D.

$1,250,000

Realty Corp...

Co.

Rogers

Hermes

&

Co.)

invited)

&

Brothers)

(Laird

stockholders—underwritten

Accurate

Common

Y—:_—_

Weld &

(Lehman

•

Common

Debentures

Kimball

C.

Inc

J.

Associates, Inc.___

Oklahoma Cement Co._^

(Charles

$300,000

£ Co.)

Putnam.

Equip.

be

to

ilune

Preferred & Common

Co.)

by

Spiegel, Inc

$300,000

Inc

(White,

Don.ii

•rn~.

110,000 shares

Stores, Inc
Plohn

(Charles

Finance,

Dalton

*o>:

Lerner

Microwave

$15,417,500

Industries^ Inc.
;

(Frank

(Bids

..

Common

YSummit Securities. Inc.)

City, Utah. Underwriter—Earl
Lake City, Utah.
>

Continued

Common

Ry

:

Corp..

Lemon

Line

:/.V:

Debentures
Y.YYYY

Century Brick Corp. of America..^.Consolidated

iuiu

;

Office

(Thursday)

Co,__

•

(Monday)

.'

•»

hfiB

1

investment.

Lake

Smith

:

(Offering

June

Water

Air

Seaboard

*

225.000 KhoreS

shares of
(10 cents per share)/
Office—450 So. Main St.

Price—At par

leeds—For

CALENDAR

to. stockholders—underwritten
!
38.004
shares

(Offering

rr

Common

Corp.—....Common

iH.

stock.

mon

Price—

stock.

common

working capital.
Underwriter—None.

June 4

Co.>- 400,000

Commercial Investors
Corp.
28 (letter of
notification) 900,000

Nov.

Development Corp.

37,500 shares of

Brothers, New

Offering—Indefinite.

Compudyne Corp. (6/15-19)
May 15 filed 214,071 shares of common stock
(par 23
cents), of which 172,000 shares are to be offered for the

Line Co.__ .Common

Commerce, Washington, D. C._

York.

Civic Finance Corp.; (6/2)
May 1 filed 30.000 shares of common stock (par $2). Price
—To be supplied by amendment. Proceeds—To
provide

the

assets;

'Offering to stockholders) $300,000
no

stock to be
offered in units as follows:
$1,000 of bonds and 48 sharee
of stock and $100 of
debentures flnd nine shares of stock.
Price—To be supplied
by amendment. Proceeds — To
construct refinery. Underwriter—Lehman

—Chattanooga, Tenn.

"connection

and

Industrial

(Friday)

Commercial Barge

•T t ■<" :

Refining Corp.
16,1957 filed $25,000,000 of first mortgage bonds due
sept. 1, 1968, $20,000,00 of subordinated debentures
due
Oct. 1, 1968 and 3,000,000 shares of common

Salt

NEW
A".

Commerce Oil

Dec.

B20 per share. Proceeds—For
purchase and development
of industrial properties and for

Buckeye Corp., New York
April 28 filed 192,039 shares of 5% convertible preferred
stock, series A, (par $10) and 164,299 shares of common
I' stock (par $1). All of the preferred shares and 99,299
shares

Office—Suite 421, 961
Underwriter—Associated
Falls, Iowa.

Securities 412 Main
Street, Cedar

-/VyyV

Chattanooga

v

v

and one share of stock.
Proceeds—For working capital.
Sherman Street, Denver, Colo.

Baldwin Building, 1005 State
Street, Erie, Pa. Under¬
writer—Summit Securities, Inc., New
York, N. Y.

Office—:

901

Seneca Ave.. Brooklyn 27, N. Y.: Underwriter
^
Sano & Co., 15 William St., New York, N. Y.
Offering
.;—Temporarily suspended by SEC.1
'
•

•

.

(par $1) to be offered in units of $200 of deben¬
Price —$205 per unit

tures

yV ; YyyYCentury Brick Corp. of America (6/1-5)
April 6 (letter of notification) 150,000 shares of common
stock.. Price—$2 per share.
Proceeds—To be added to
general funds, of the company. Office—1020 G. Daniel

y;; Y

and

stock

•

Brookridge Development Corp.

Proceeds—For expansion

(letter of notification) $220,000 of 6% unsecured
debentures due April 1, 1964 and
1,100 shares of common

Central Illinois Light Co.
April 23 filed $10,038,700 of 414% convertible debens. due
1974, being offered for subscription by common stockholders of record May
12, 1959, on the basis of $100 of

Y York.

Dec. 19 (letter of notification) $200,000 of 6%
15-yeaz
Lcconvertible debentures. Price—At par ($500 per unit)

ai

Feb. 25

—

debentures for each 22 shares then
held; rights to expire
on May 27.
Price—100% of principal amount. Proceeds
For construction program,
including the repayment of
short-term bank loans incurred for such
purpose.
Un¬
derwriter—Eastman Dillon, Union Securities &
Co., New

Securities

&

Colorado Water & Power Co.

borrowings; and for various other corporate
Underwriters
Dominick & Dominick, New
York; and Schwabacher & Co., San Francisco, Calif.

$1,665,100 of common; stock of Mon-

Shares, Inc., Boston, Mass.

May 5 filed 1,100,000 shares of common stock.
Price—
At market.
Proceeds—For investment.
Underwriters
—White, Weld & Co., New York, and Dean Witter &
Co., Los Angeles, Calif. Offering—Expected late in June.

bank

purposes.

first

taup Electric Co.

Milwaukee, Wis.

Colonial Energy

—

.

;

filed S5.000.000 of

additional working capital. Office—633 North Water
St.,
Milwaukee, Wis. Underwriters—Emch & Co. and The
Marshall Co., both of

Y

Burndy Corp., Norwalk, Conn. (6/2)
May 5 filed 152,500 shares of common stock
(par $1), of
which 125,000 share are to be offered
for account of the
company and 27,500 shares for the account of
selling
stockholders.
Price
To be supplied by amendment.
Proceeds—For repayment of
mortgage obligations; short-

(6/23) Y.C
mortgage and collateral
av. trust
bonds due April 1, 1989.- Proceeds—To
prepay its
short-term bank loans, to purchase
$2,014,100 of deMay

65,000 common shares are reserved for issuance
Employee Restricted Stock Options. Underwriter

under

! Britalta

u

39

Co.,

(Tuesday)
Co.

Bonds

(Bids to be invited) $15,000,000

Common

September 10

$615,625

Common

:

Inc.)

Electric

$750,000

(Thursday)

Georgia Power Co
(Bids to U inriUd) 918,000,000

,

40

The Commercial and Financial Chronicle

(2444)

Continued from page

Inc.
(letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital. Office—Mearns Bldg., 142-148 N.
March 25

42,071 shares for the account
of a selling stockholder. Price—$3 per share. Proceeds—
To continue development of products and control tech¬
niques for incorporation into the company's present con¬
trol systems: and for working capital. Office—404 South
Warminster Rd., Hatboro, Pa.
Underwriters—Milton D.
Blauner & Co., Inc.. New York: and Hallowell, Sulz¬
berger, Jenks, Kirkland & Co., Philadelphia, Pa.
account of the company and

•

1974, with attached warrants for the pur¬
of class A common stock. Price
—At face amount (in units of $500 each). Proceeds—To
finance making of additional loans and to reduce shortterm debt.
Office—3800-34th St., Mt. Rainier, Md. Un¬
derwriter—Paul C. Kimball & Co., Chicago, 111., on a

due

(letter of notification)

Water

one

•

new

Electrodynamics

Derson Mines Ltd.

June 5 filed 350,000 shares of common stock.

Corp.

•

Consolidated

Natural

company's $1.25 cumulative convertible preferred stock
received by DCA common stockholders in connection
with the recently consummated merger of Real Estate

Co.

Gas

~h?»re

1

a

being of-

to stockholders of record

Equities, Inc., into DCA and the plan of reorganization

May 21, 1959; rights to expire on June 10. Price—$47
per share. Proceeds—-Additions to treasury funds and to
construction.

finance

consummated

Underwriter—

Di-Noc Chemical Arts,

Inc.
April 8 filed $947,200 of 5%% convertible subordinated
debentures, due May 15, 1971, being offered for subscrip¬
tion oy common stockholders in the ratio of $100 of de¬
bentures for each 30 common shares held on May 14,
1959; rights to expire on June 1. Price—100% per prin¬
cipal amount. Proceeds—For plant expansion and work¬
ing capital. Underwriter—Blair & Co., Inc., New York.
•
DIT-MCO, Inc.
April 15 filed 30,000

outstanding shares of common1
only about 16,000 shares are to be offered.
Price—$10.50 per share. Proceeds—To selling stockhold¬
ers A Office—911 Broadway, Kansas City, Mo.
Under¬

Continental Tobacco Co./ Inc.

(6/8-12)
100,000 shares of

April 2

therewith.

connection

in

None.

Underwriter—None.

Consolidated Petroleum Industries, Inc.
(6/1)
April 30 (letter of notification) 80,000 shares of 6% con¬
vertible preferred stock (par $3.50) and 80.000 shares of
coi...,
vx-c*
oe otiered in units of
one share of preferred and one share of common.
(Pre¬
ferred stock may be converted into two shares of com¬
mon stock at any time.)
Price—$3.75 per unit. Proceeds
•—For development of gas properties. Office—908 Alamo
National Bank Building. San Antonio, Texas.
Under¬
writer—Frank Lerner Co., New York, N. Y.
•

stock,

(letter of notification)
com¬
mon stock (par 10 cents).
Price—$1.25 per share. Pro¬
ceeds—For general corporate purposes. Office—607-12th
Avenue. Huntington, W. Va.
Underwriter—Best Secu¬

writer—Midland

Securities

Oivercivitd Inc..

rities, Inc., New York.

Jan.

6

Co., Inc., Kansas City, Mo.

300,000 shares of common stock (par 50
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or acquisi¬

Office—2100

tion

Scarth

St., Regina, Saskatchewan, Canada.
Securities
Ltd.,
also
of

used

Cumberland

—

of

finance

consumer

for

business, and balance to be

capital.
Denver, Colo.,

working

Underwriter — Investment
a best efforts basis.

Regina.

Service Co.,

Crescent Petroleum Corp., Tulsa, Okla.
May 26 filed 48,460 shares of convertible, preferred stock
($25 par) and 12,559 shares of common ($1 par), 34.460
shares of the preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on
Aug. 6,

Co.;

1958.

received up

corporate
L. I., N,

purposes.

Y.

Office—54

Kinkel

St.,

May

conducting research and development of highly tech¬
nical and specialized electrical and
electronic equipment.

Underwriter—Myron A. Lomasney & Co., New
26

filed

60,p00 outstanding shares of

May 22 filed
be

per unit.

Proceeds—For establish¬

of proposed new
stores, to pay accounts payable
(trade), to be applied to extinguish long- and shortterm loans, and the balance to increase
working capital
368

E.

87tn

Charles Plqhn &
•

Street, Chicago, 111.
Co., New York,

stock
to

the basis of

for each

expire

•

Boston

shares

June 9.

on

Proceeds—For
First

38

one

Underwriter

of

expansion

Corp.,

New

program.

writer—Investment

per

writer

Miss.

"best efforts" basis. Price—To
be supplied
amendment. Proceeds
Added to general funds.
Underwriter—To be supplied by amendment.
on

a




—

subordi¬

stock

common

then held; rights to expire on
Proceeds—To repay outstanding-

bank loans and for general corporate purposes. Office4-c?
Carew Tower, Cincinnati, Ohio. Underwriter—None.

Empire Millwork Corp., Corona, N. Y.
April 17 filed 95,000 outstanding shares of common stock/
Price
$10.25 per share. Proceeds — To selling stock¬
Underwriter—None.

holders.

\

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts.
Proceeds—For investment, etc.
Office—2480
16th Street, N. W., Washington, D. C.
Underwriter-^None.
.;/• Vi: VV"
-N''-w A'
★ Fabrex

Corp.

(6/15-19)

May 21 filed 300,000 shares of capital stock (par $1), of
which 150,000 shares are to be sold for account of 'the
and 150,000 shares for certain selling stockhold¬

company

Price—To be supplied by amendment. Proceeds—To

prepay

outstanding obligations and for general corporate
Business—Textile converting.
Office—115
St., New York, N. Y. Underwriter—Bache &

purposes.

West

40th

Co., New York.
ic Fairey Co., Ltd.
May 20 filed oo,uo0 American Depositary Receipts for
ordinary registered shares. Depositary — Chemical Corr)
Exchange Bank, New York.
• Fedders
Corp., Long Island, N. Y.
May 12 filed $3,815,800 of sinking fund subordinated de¬
bentures, due May 31, 1959, with warrants to purchase
152,632 shares of common stock to be offered for sub¬
scription by common stockholders in units of $100 of

debentures with warrant for the purchase of four shares
of stock at the rate of one unit for each 50 shares held
or about June 11,
1959; rights to expire on or about
July 27. Price—$100 per unit. Proceeds—To be used for
the most part for the purchasing of products by com¬
pany's distributors and dealers; and the balance will he
used for general corporate purposes. Underwriter—Allen
on

&

Co., New York.
Federated Corp. of Delaware
29 filed $918,000 of 6% convertible

Dec.

r?

subordinated

due 1968.
The company proposes to offer
$210,000 of the debentures to purchase the capital stock
Credit, Inc., a New York company;
$442,000 of the debentures in exchange for Consumers
debentures; and $226,000 of the debentures in exchange
for the outstanding 12% debentures of three subsidiaries

of Consumers Time

of Federated.
Y.

Office—1 South Main

Federated
Nov.

Street, Port Chester,

Underwriter—None.

17

Finance

(letter

Co.

of notification) $300,000 of 10-year 6%
debentures.
Price—At par (in de¬
$1,000 each). Proceeds — For working

lenior subordinated

nominations of

:apital, to make loans, etc.
join,

Neb.

Underwriters

Office—2104 "O" St., Un¬

—

J.

Cliff

Rahel

&

Co.

and

Eugene C. Dinsmore, Omaha. Neb.

Fidelity Trend Fund, Inc., Boston, Mass.
•/*.
May 1 filed 50,000 shares of capital stock. Price—At net
asset

value.

Proceeds

Service

—

For

investment.

Investment-

Manager—Fidelity Management & Research Co., Boston,
Agent—Crosley Corp., Boston, Mass.
Offering—
be

made within

organization.

,

/;

?(:'
o*

A

common

stock.

Price—At par ($1.50 per share)

:apital.
writer

Proceeds—For working
Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot
Bldg., Detroit,

—

Mich.
•
Fleming Co., Inc., Topeka, Kan. (6/1-5)
May 1 filed 100,000 shares of common stock (par

$5).

of which 75,000 shares are to be offered for the account
of the company, and 25.000 shares for the account of

certain

selling

amendment.

stockholders.

Proceeds—For

products.

Price—To

be

working capital.

supplied by
Business—

Underwriter—White, Weld

Co., Denver, Colo.

Flintkote Co., New York
May 20 filed 227,368 shares of

common

stock, of which

173,286 shares are to be offered to certain officers and
key employees of Flintkote and its subsidiaries under
the

•

York.

of

by

convertible

ployees) and 21,250 shares for account of eight selling
stockholders. Price—To be supplied by amendment. Pro¬
ceeds—For capital expenditures and working capital.
Underwriter—Kidder, Peabody & Co. Inc., New York.

of Blue Diamond into Flintkote.

Electronic

Engineering Co. of California

(6/10)

(flat).
Underwriter—The

record May 15, 1959.
The remaining
858,387 shares will be offered publicly
by the under¬

.'ivi.''-

(6/8)
4%%

& Co., New York.

May 13 filed 100,000 shares of common stock (par 81) of
which 78,750 shares are to be offered for the account
of the company (including 10,000 shares initially to em¬

share

Cr"sad,er PI1 & ©as Corp., Pass Christian,

of

"Flintkote Stock Option Plan"; 16,771 shares are
subject to options granted by r lintkote in substitution
for options granted by Orangeburg
Manufacturing Co.,
Inc., to certain of its officers and key employees; and
37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond
Corp. to certain
of its officer and key employees.
Flintkote acquired alt
the assets of Orangeburg in December, 1958, in
exchange
for 132,416 shares of preferred
stock; and on May 14,
1959, it issued 615,617 common shares upon the merger

•

May 26 filed 1,500,000 shares of common
stock, of which
641,613 shares will be offered on a one-for-one basis to
stockholders

City Supply Co.

April 6 (letter of notification) 300,000 shares of class A
common stock (par 25 cents).
Price—$1 per share. Pro¬
inventory, equipment, working capital, etc.
Office—901 S. Lake Street, Farmington, N. Mex. Under¬

of convertible preferred
common stock
held; rights

$100

Proceeds—To
Office — Broad
&

ceeds—For

share

Price—At

acquisitions.

unit.

Streets, Philadelphia, Pa. Underwriter—None.

Electric

May 4 filed 99,885 shares of 514% cumulative converti¬
ble preferred stock (par $100)
being offered for sub¬
scription by common stockholders of record May 26.
on

of

June 30. Price—At par.

Distributor of food

Crucible Steel Co. of America

1959,

various

per

March 27

ment

Office

for

Price—$10,000

JEckert Mineral Research, Inc.
(letter of notification) 150,000 shares of com¬
mon stock (par 50 cents).
Price—$2 per share. Proceeds
—For mining and selling of ore. Office—110 E. Main
St.,
Florence, Colo.. Underwriter—Harris Securities Corp.,
New York, N. Y.

•

Price—$5

used

Chestnut

Crown Self-Service
Stores, Inc. (6/1-5)
April 10 filed 250,000 units, each unit consisting of one
share of common stock and two common stock
purchase

86,103,700

Finance For Industry, Inc.
Dec. 16 filed 200,000 shares of class

$2,000^000 of partnership interests, to be

offered in units.

Ave., Binghamton, N. Y. Underwriter—None.

and/or series 2

July 1, 1979, to be offered for sub¬
scription by common stockholders of record June "5,
1959, at the rate of $100 of debentures for each eight

To

Underwriter—None.

ir Drexeibrook Associates
common

1

Mass.

L. I.. N. Y.

stock (par $20). Price— To be
supplied by amendment.
Proceeds—To selling stockholders. Office—145 Conklin

Warrants.

10,000 shares of capital

York.

Crowley's Milk Co., Inc.

filed

21

working capital. Office—29 New York Ave., Westbury,

and

series

nated debentures due

stock (par $1) to be offered to employees under an Em¬
ployees Stock Subscription Plan to be offered in units
of five shares. Price — $10 per share.
Proceeds — For

Westbury.

Business—Designing, manufacturing

Corp.; Morgan Stanley & Co.;
Corp. Bids—Expected to be
to 11 a.m. (EDT) on June 9.

ic Dome & Margolin, Inc.
May 21 (letter of notification)

(par 25
Proceeds—For general

cents). Price—$3.37V2 per share.

Boston

Stone & Webster Securities

Crosby-Teletronics Corp.
(6 15-19)
May 22 filed 250,000 shares of common stock

March

on

(par $100). Proceeds—To finance construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Eastman, Dillon, Union Securities &

Underwriter—None.

of

—None.

* Emery Industries, Inc.

N.

First

shares

stock

held; unsubscribed shares to other stock¬
holders.
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish Street, Jackson, Miss. Underwriter

May 6 filed 250,000 shares of preferred stock, series B

The

the

on

three

for each

to

debentures

Amarillo, Texas

filed

Mining Corp. Ltd.
April 17 .filed 260,000 shares of common stock. Price—
80 cents per share. Proceeds—For exploration
program.

Cree

Underwriter

stock

250,000 shares of series 3
be offered for subscription
basis of one share of series 3

(no par)

by stockholders

ers.

Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)
reserved for issuance upon conversion of shares of the

pay hank loans. Office—Pasadena, Calif. Underwriter—■
Blyth & Co., Inc., New York and San Francisco.

April 28 filed 821,256 shares of capital stock

Price—U

share. Proceeds—For new equipment, repayment ot
loan, acquisition of properties under option, and othei
corporate purposes. Office—Toronto, Canada, and Em
porium, Pa. Underwriter—None.
per

June 8. Price—At par. Proceeds—To

Thursday, May 28, 1959

.

—

filed

31

notes and to provide additional working capital and for
general corporate purposes. Underwriter—H. M. Byllesby
& Co., Inc., New York and Chicago.

tion by common stockholders in the ratio of $100 deben¬
tures for each 14 shares of common held as of May 20;
on

1

$1,000,000 of convertible subordinated
debentures due 1974. Price—To be supplied by amend¬
ment. Proceeds — To retire mortgage loans and bank

April 29 filed $7,616,500 of 4V2% convertible subordin¬
ated debens. due June 1, 1984, being offered for subscrip¬

rights to expire

(5/29)

DeJur-Amsco Corp.

March

rights to expire on or about June 23.
The remaining 982 shares are to be offered for subscrip¬
tion by employees. Price—To be supplied by amendment.
Proceeds—To repay in part the company's outstanding
bank loans; to finance part of its 1959 construction pro¬
gram, and for other corporate purposes, Underwriter—
Putnam & Co., Hartford, Conn.
thereof then held:

Consolidated

Underwriter—H. M. Byllesby & Co.,

Inc., New York and Chicago.

stockholders of record June 3, 1959, at the
share for each four shares or fractions

common

rate of

stock

:ommon

shares

DeJur-Amsco Corp.

selling stockholders.

May 15 filed 38,986 shares of common stock (no par), of
which 38.004 shares are to be offered for subscription

by

2,

(5/29)
March 31 filed 225,000 shares of class A stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
•

(6/4)

Co.

Jan.

best efforts basis.

acquired by Schlumberger Ltd.

Connecticut

9 filed

chase of 100,000 shares

100,000 shares of com¬
mon stock (par 10 cents).
Price—83 per share. Proceeds
-—For working capital.
Office — 611 Broadway, New
York, N. Y. Underwriter—Adams & Peck, New York,
N. Y. Proposed financing has been cancelled. Company
was

Inc. (6/1-5)
$500,000 of 7% subordinated debentures,

Finance,

Dalton

March

Jan.

common

Co., New York, N. Y.

Computer Systems, Inc.

April 21

Underwriter—Sano &

Pa.

Washington Ave., Scranton,

.

Emerite Corp.
19 (letter of notification)

Cycon,

39

.

-

Electronics Capital

Corp.

(6/3-4)

April 27 filed 1,800,000 shares of common stock (par

$1).

Price—$10 per share. Proceeds—For investment. Office—
San

Diego, Calif. Underwriter

New York.

—

Hayden, Stone & Co.,

Florida

Power

-

-

Corp.

April 16 filed 703,485 shares of common stock (par
$2.50)
being offered for subscription by common stockholders
of record May 14, 1959, on the basis of one new share

Volume 189

Number 5850

.

.

.

The Commercial and Financial Chronicle

common stock then held (with an
oversubscription privilege); rights to expire on June 3,
Price
$25 per share. Proceeds—To pay off $7,000,000 of temporary bank loans, which were incurred
to meet construction expenditures, and the balance will
be applied to the 1959 construction program.
Under¬
writers
Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith, Inc., both of New York.

for each 12 shares of

1959.

scheduled to be received up to 3:45 p.m. (EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washing*
ton 25. D. C.» but bidding has been postponed.
oeen

—

General Merchandising Corp.,

Light Co.

(par one cent). Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer
Union
Securities Investment
Co., Memphis,
Tenn. Statement effective April 24.
—

(6/3)

May 8 filed $25,000,000 of first mortgage bonds due 1989.
Proceeds—To be used to provide additional electric fa¬
cilities and for other corporate purposes, including re¬
payment of $7,000,000 of short-term bank loans made
in March, 1959, for similar purposes. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Smith, Inc. and Kidder, Peabody & Co. (joint¬
ly); White, Welcl & Co.; The First Boston Corp. Bids—
Expected to be received up to 11:30 a.m. (EDT) on
June 3 at Room 2033, Two Rector St., New York, N. Y.
•

Florida-Southern

^ General Precision Equipment Corp. (6/26) :
May 26 filed 105,927 shares of cumulative convertible
preference stock ($50 liquidating value) to be offered
for subscription

of

stock in the ratio

Proceeds—For

ment.

of

one

Development Inc. (6/2)
May 5 filed together with Food Fair Properties Inc. (1)
$7,500,000 of 25-year collateral trust bonds, due May 15, /
1984 of Food Fair Properties Development, Inc. and (2)
7,500 warrants for the purchase of 750,000 shares of
common stock of Food Fair Properties.
It is proposed
to offer these securities in units each consisting of $1,000
principal amount of the bonds and a warrant to pur¬
chase 100 common shares.
Price—$1,000 per unit. Pro¬
To be used for loans to subsidiaries.

York.

Foundation Investment Corp., Atlanta, Ga.

Jan. 13 filed 231,988 shares of common stock to be of¬
fered for subscription by stockholders; unsold portion
lo be offered publicly. Price—$12.50 per share. Proceeds
—To repay notes.
Office—515 Candler Bldg., Atlanta,
Ga. Underwriter—None. Statement effective April .2.
;
.

4 Founders Mutual

Depositor Corp., Denver, Colo.
May 21 filed (by amendment) an additional 1,000 ac¬
cumulative plan certificates and 100 income certificates.
investment.

Franklin Electric Co.,

Inc.
May 12 filed 40,000 shares of common stock (no par), of
Which 20,000 shares are to be offered for account of
company, and 20,000 shares for the account of certain
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—To be advanced to a subsidiary for the
purpose of constructing an addition to a building now

being leased from the subsidiary.
Office — 400 East
Spring Street, Bluffton, Ind. Underwriter—Fulton Reid
& Co., Inc., Cleveland, Ohio.
Funds For Business, Inc.

(6/8-12)
May 8 filed 500,000 shares of class A stock (par 50 cents).
Price—$1.50 per share. Proceeds—For working capital.
Office—120 East 41st Street, New York. Underwriters—
Joseph Mandell & Co., Inc., New York; and Robert L.
Ferman & Co., Inc., Miami, Fla.
Futterman-Dupont Hotel Co.
May 22 filed $1,706,900 of Limited Partnership Interests,
to be offered in units. Price—$25,000 per unit. Proceeds
—To repay monies borrowed for the purpose of closing
title and paying incidental. expenses in acquiring the.
Dumont Plaza Hotel in Washington, D. C. Office—580
Fifth Avenue, New York, N. Y. Underwriter—None,

t Gate City Steel Co., lnc., Omaha, Neb.
debentures,

series A, due May 1, 1969, of which $350,000 will be.
like amount of 5%
debentures which the company plans to retire. The re¬
maining $900,000 debentures will be offered publicly.
Price—Par. Proceeds—For advances to company's sub¬
sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co. of Lincoln, Neb.
a

ic General American Transportation Corp.
May 25 filed 107,491 shares of common stock. These
shares were issued pursuant to a March, 1959, contract
Whereby the company acquired the issued and outstand¬
ing capital stock of Traylor Engineering & Manufactur¬
ing Co.
•.

Jan. 14,1957 filed 426,988 shares of common A stock (ns

par) and 1,537,500shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co* Inc* and The First Bos¬
ton
Corp.1 (jointly); Ktihn, Loeb & Co;; Lehman
Brothers, and Glore, Forgan Sc Co. (jointly). Bids—Had




260,000 shares of common stock (par $1)l
250,000 shares are to be publicly offered ami
10,000 shares to officers and employees. Price—$10 par
shares to public; $9 to employees. Proceeds—To sellings
stockholder.
Underwriter
For public offering: Vttt
Alstyne, Noel & Co., New York.
Offering—Postpontdl
indefinitely.
'
*
of which

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.

—

Corp.

★ Idaho Department Store Co.
May 15 (letter of notification) 15,000 shares of commons,
stock (par $10) to be offered to employees under a Stock:
Purchase Plan. Price—To be determined from time t<*
time.

unpaid dividends from November, 1950).

The

—

Claymont, Del. Statement effective May 12.
Giant

Food

Properties, Inc., Washington,

D. C.

Imperial Growth Fund, Inc.
March 2 filed 600,000 shares of common stock. Price—
Proceeds—For investment. ' Office — 60 Mar-»

„

market.

quelte Ave., Minneapolis, Minn. Underwriter
neapolis Associates, Inc., Minneapolis, Minn.

None.

shares of
For

Growth FPnd of America, Inc.
4 filed 256,000-shares of common

Hemisphere Gas G Oil Corp. ~
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For development ol oil and gas properties. Office—702
American Bank Building, Portland 5, Ore. Underwriter
—D. Earle Hensley Co., Inc., 4444 California Avenue,
Seattle, Wash.
^ Hereon Electronics Corp.
May 21 (letter of notification) 100,000 shares of common
stock (par one cent). Price—$3 per share. Proceeds—To
defray expenses; to pay outstanding notes; to purchase
equipment and to further manufacturing facilities.
Of¬
fice—481 Washington St., Newark, N. J. Name Change—
Company formerly was known as Hermetic Connector
Corp. Underwriter—Richard Bruce! & Co., Inc., 26 Broad¬
way, New York, N. Y.
•

Hermes

Electronics Co.

(6/1-5)

shares of common stock. The
statement also includes 36,755 shares of common stock
issuable upon the exercise of options; and 147,564 shares
issuable upon the exercise of rights of holders of $5
29

filed

150,000

stock

D. C.

$5,000,000 of notes (series B, $500,000, two-*
year, 3% per unit; series C, $1,000,000, four-year 4% Rl
unit; and series D, $3,500,000, 6-year, 5% per unit). PfiMt
—100% of principal amount.
Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Wadk—
ington, D. C. Offering—Indefinitely postponed.
Railroads Weighing Corp.
(letter of notification) 82,626 shares of com¬
stock (par $1) to be offered for subscription, byf

International

Feb.

stock (par, 10
investment.
Office —1825 Connecticut Avenue, Washington, D. C.
Investment
Advisor—Investment
Advisory Service,
Washington, D.- C. Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.

100,006

Proceeds—«

Dec. 29 filed

—

Proceeds—For

additional

International Bank, Washington,

(6/1-5)
stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For working capital. Office—15 William Street, New
York, Underwriter
Louis L. Rogers Co. and Joseph
Mandell Co., Inc., both of New York.
Realty Corp.

market.'

an

Price—At market.

—For

March 30 filed 900,000 shares of class A

Price—At

stock.

(letter of notification) 100,000 shares of com¬
(par 25 cents). Price—$3 per share. Proceed®
working capital. Office — 101 New South Road,
Hicksville, L. I., N. Y. Underwriter—D. A. Lomasney 8s
Co., New York, N. Y.
mon

particularly in that of general vendingdesign; and to reduce or eliminate the neces¬
sity for seasonal short-term bank borrowings.
Under¬
writer—Smith, Hague & Co., Detroit, Mich.
Great American

common

investment.

ir Instruments for Industry, Inc.

machine

April

,

May 22

more

cents).

^

Fund, Inc., New York
20 filed (by amendment)

May

Ind.

May 25 filed 100,000 shares of common stock. Price—$10
per share. Proceeds—To be added to the general funds
of the company and be used, together with retained
earnings, to maintain its program of research and devel¬
opment in the over-all field of commercial refrigeration

•

Mtn—

ic Istei

Md.

• Glasco Corp., Muncie,

and

—

Information Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock to be of¬
fered for subscription by common stockholders of Panellit, Inc., at rate of one new share for each three Panellrt
common shares held of record May 15, 1959. Price—$3.56
per share. Proceeds—To pay notes, for research and de¬
velopment costs; and working capital. Underwriter—

Gilpin (Henry B.) Co., Baltimore, Md.
May 19 filed $725,000 6% convertible subordinated de¬
bentures due June 1, 1974, and 17,500 shares of class A/
common
stock. Price—To be supplied by amendment.
Proceeds—To repay notes payable and for other corpor¬
ate purposes. Underwriter—Alex. Brown & Sons, Balti¬
more,

working capital. Office—803 Main.
Caldwell, Idaho. Underwriter—None.

★ Ideal Precision Meter Co., Inc. (6/15-19)
May 19 filed 137,500 shares of common stock (par 1®
cents). Price—$3.75 per share. Proceeds—For planned
expenditures and working capital, and for payment of
certain indebtedness. Office
126 Greenpoint Avenue-,
Brooklyn, N. Y. Underwriter—Charles Plohn & Co., Newr
York.
'
V/'' V '
'
r"

offer is conditioned upon acceptance by holders of 80%
of New Rochelle stock. Office—3219 Philadelphia Pike,

May 19 filed $680,000 5*4% sinking fund debentures (GT
series), due Dec. 1, 1971, together with 74,800 shares of
common stock. Price—To be supplied
by amendment.
Proceeds—To Richard Borden Industries, Inc., the sell¬
ing stockholder. Underwriters—Auchincloss, Parker &
Redpath, Washington, D. C.; and Kidder, Peabody &
Co., New York.

Proceeds—For

Street,

share of New Rochelle $3.50 preferred (including accu¬
mulated

Food Mart, Inc.
(6/8-12)
May 15 filed 162,025 shares of common stock (par $2).
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—1000 Robert E. Lee Rd., El
Paso, Tex. Underwriter—Shearson, Hammill & Co., New

General Aniline 1 Film Corp., New York

March 9 filed

(par $100) and 66,131 shares of 80-cent dividend voting
second preferred stock (convertible—par $1). The com¬
pany proposes to offer one share of the 80-cent dividend
second preferred stock for each share of New Rochelle
Water Co. and one share of its $5 preferred and one
share of the 80-cent dividend second preferred for each

May 20 filed 200,000 shares of common stock, for issu¬
ance
pursuant to the company's Selected Employees'
Stock Option Plan.

exchange basis, for

are to be offered for the account of the company
and 30,000 shares for a selling stockholder. Price—$1 per
share. Proceeds—For furniture inventory and improved

General Waterworks

★ Food Machinery & Chemical Corp.

on an

Hoffman Motors Corp.

shares

March 31 filed 16,131 shares of $5 voting preferred stock

Food Fair Properties, Inc.
See Food Fair Properties Development Inc., above.

offered,

Hirsch (P. N.) & Co., St. Louis, Mo. (6/1-5)
April 29 filed 132,500 outstanding shares of»common
stock (par $1). Price—To be supplied by ^spfcendment.
Proceeds—To selling stockholders.
Underwriter—Newhard, Cook & Co., St. Louis, Mo.
' 1;

v

April 6 (letter of notification) 225,000 shares of com¬
mon capital stock (par 25 cents).
Of the total, 195,000

Office—

Philadelphia, Pa. Underwriter—Eastman Dillon, Union
Securities & Co., New York.

sinking fund

-

General Underwriters Inc.

V Food Fair Properties

6%

(letter of notification) 285,000 shares of com¬
Priee—At par ($1 per share). Proceeds—T®
pay existing liabilities; for additional equipment; antt;
for working capital.
Office—East Tenth Street, P. (L
Box 68, Great Bend, Kan.
Underwriter—Birkenmayar
& Co., Denver, Colo.
;
\
stock.

mon

the American Stock Ex¬

>

Hickerson Bros. Truck Co.r Inc.

;

Price—Relating to the then current market on
American Stock Exchange.
Proceeds — To selling
Underwriter—None.

Office-^-716

Ave., Mount Vernon, N. Y. Underwrit¬

March 11

change.

stockholders.

.

'

Hirsch & Co. and Amos Treat &
Co., Inc., all of New York.

May 21 filed 1,884,278 shares of common stock (par $1)
on

1

ers—Ira Haupt & Co.,

,

the

May 26 filed $1,250,000

South Columbus

-Ar General Stores Corp,

ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland, Ore.

1

payroll taxes and other current liabilities.

16/2

capital. Underwriters—
Corp., and Tucker, Anthony & R. L.
Day, both of New York.

Co., Inc., New York.

Proceeds—For

share for each

working

to be sold from time to time

market.

new

York, will

Herold Radio & Electronics Corp. (6/16-19).
May 18 filed $1,500,000 of 6% convertible subordinate*!
debentures due June 15, 1974. Price—100% of
principal,
amount. Proceeds—To reduce notes payable, excise taxes.'

The First Boston

Fluorspar Corp. of America

Price—At

writer—C. E. Unterberg, Towbin & Co., New
underwrite the 150,000 shares of common.

its

Feb. 5 (letter of notification—as amended) 300,000 shares
of common stock. Price—At par ($1 per share). Pro¬

y

payment of notes and balance to be used for general
corporate purposes. Office—Cambridge, Mass. Under¬

shares of $1.60 preference stock held on June 26; rights
to expire on July 13. Price—To be supplied by amend¬

—

—

10-year sinking fund debentures due 1965 to con¬
vert such debentures, and 734,374 of presently outstand¬
ing shares which may be offered by holders thereof.
Name Change—This company was formally known am
Hycon Eastern, Inc. Price—To be supplied by amend¬
ment. Proceeds—To be used in part towards the pre-"

26; rights to expire on July 13. Each holder of the $1.60
preference series will have the right to subscribe for the
new

preferred stock to convert such stock; 20,006,

shares issuable upon the exercise of rights of holders of7

by holders of the

holders

and

41

5%

ferred for each 11 shares of common stock held on June

Corp., (6/2)
April 13 filed 2,000,000 shares of common stock. Price
$2 per share.
Proceeds—For construction of motel
units and other facilities, - Office — Tom's Harbor, Fla.

ceeds

cumulative

company's common
$1.60 cumulative convertible
preference stock, in the ratio of one share of new pre¬

stock

Land

Underwriter—Alkow &

Memphis, Tenn.

Feb. 18 filed 250,000 shares of class "A" common stock

—

Florida Power &

(2445)

«•

April 16
mon

common

stockholders at rate of one new share for eaela j

Price—$3 per.share. Proceeds — For
development costs and working capital.

four shares held.

research

and

Office—415 Spruce
None.

St., Hammond, Ind.

Underwriter—^
•

(6/22-26)
May 14 filed 2,750,000 shares of common stock (par 56
cents). The issue was later reduced by amendment to
980,000 shares. Of this total, 250,000 shares are under
option to Webb & Knapp, Inc., exercisable at $10 per
share, the shares to be offered for public sale through*
the underwriters if the option is not exercised.
Price—
$17.50 per share.
Proceeds—For construction and aqui—
sition.
Office—60 State St., Boston, Mass.
Underwriter
—Paine, Webber, Jackson & Curtis, New York and
★

International

Recreation

Corp.

Boston.

International Tuna Corp.

,

,

(letter of notification) 175,000 shares of claa*
A common stock (par 50 cents).
Price — $1 per sharo*
Proceeds—For equipment and working capital.
Offiew
—Pascagoula, Miss. Underwriter—Gates, Carter & Co*,
Gulfport, Miss.
April 3

Continued

on

page

4Z

42

The Commercial and Financial Chronicle

(2446)

.

.

.

Thursday, May 28, 1.959

y■"
'■
Oil, Gas & Minerals, Inc.
Wv?s-v
April 2 filed 260,000 shares of common stock (par 35 i
cents.
Prfce—$2 per share/ Proceeds—To retire bank . loans and for investment purposes. Office—513 Interna- ;
tional Trade Mart, New Orleans, La.
Underwriter —Assets Investment Co., Inc., New Orleans, La.
/0-.,■

••

Continued

jrom

page

Henderson Rd., Tampa 7, Fla. Underwriter—W.
Schroeder & Co., New York 5, N. Y.

W.

at

41

Investmefit Corp. of Florida

(6/1-5)

April 13 filed 275,000 shares of common stock.
$4.50 per share. Proceeds—For acquisition and
ment of land in Florida.
Office —1750 East

Price—
develop¬
Sunrise

it McGraw-Edison Co., Elgin, III.
May 22 filed 10,000 participations in the company's Profit,
Sharing Plan for employees, together with 500,000 shares
of common stock which may be acquired pursuant to

Boulevard, Fort Lauderdale, Fla. Underwriters—Aetna
Securities Corp., New York; arid Roman & Johnson, Fori

said

Lauderdale, Fla.

„

-

Investors Funding Corp. of New York (6/1)
17 filed $500,000 of 10% subordinated debenturei

be offered in units of $1,000. Trie*
—At 100% of principal amount. Proceeds—For invest¬
ment Office—511 Fifth Ave., New York, N. Y. Under¬
due July 31, 1964, to

writer—None.

Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration arid development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can
Underwriter — Laird & Rumball, Regina, Sask., Can
Irando Oil &

-^Jefferson Wire & Cable Co.

(6/22-26)

stock. Price—
share. Underwriter—Charles Plohn & Co.

May 27 filed

$3.75 per

100,000 shares

of common

Jersey Central Power & Light Co. (7/14)
May 21 filed $8,000,000 of first mortgage bonds due July

11989. Proceeds—To be applied to the cost of the com¬
pany's 1959 construction program or to reimburse the
company's treasury for expenditures for that purpose.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; White,
Weld & Co.; Kidder, Peabody & Co.; Eastman Dillon.
Union Securities & Co.; Salomon Bros. & Hutzler and
Merrill Lynch, Pierce, Fenner & Smith, Inc. (jointly).
Bids—Expected to be received on July 14.
Kaiser Aluminum & Chemical Corp.

May 11 filed -64,028 shares of 4%% cumulative convert¬
>(1959 series) preference stock (par $100) and 128,052 shares of common stock, issued in exchange for the
outstanding stock of Mexico Refractories Co. through
merger.
Price—To be supplied by amendment. Pro-

Underwriter—None.

OOpds—To .selling stockholders.
Kaltman

(D.)

& Co., Inc.

(6/10)
May 13 filed 1,406,141 shares of common stock (par 50
cents) tO'be offered by Noma Lites, Inc., to the holders
of its 745,184 .outstanding common shares at the rate of
1;9 shares of Kaltman common for each share

stock

held

June

of Noma

rights to expire on
June 24. ' Price—To be supplied by amendment.
Pro¬
ceeds—To selling stockholder.
Underwriter — Bear,
Stearns & Co., New York.
common

on

10;

.

•

Ga.
filed $1,500,000 of 6%
subordinated sinking
fund debentures, with class A common stock purchase
warrants attached (for the purchase of 75,000 shares or.
25 shares for each $500 of debentures), together with
100,000 shares of class A common stock (par $1).
Price
--For ^debentures with Warrants, at 100% of principal
amount; for common stock, to be supplied by amend¬
ment.
Proceeds—To acquire in excess of 80% of the
outstanding stock of American Houses, Inc.; for land
acquisition and development for home erection; to re¬
pay notes to banks and suppliers; and for working capi¬
tal.

Straus,

Blosser &

Ira Haupt

—

McDowell,

& Co., New York; and

Chicago,

111.

Statement

withdrawn.
■:\Vs

■/

■

.--r'v

;;

• Land Equities, Inc., Santa Monica, Calif. (6/8-12)
May 12 (letter of notification) 200,000 shares of class A
comomn stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Underwriter—
Ross, Lyon &<Co., Inc., New York, N. Y.
Laure

Underwriter—None.

—

Ltd., Regina, Saskatchewan, Canada.

•

—

Marine Midland Corp.
April 17 filed 449,704 shares of common stock (par $5)
being .offered for subscription by common stockholders
of record May 12, 1959, on the basis of one new share for
;

each 20 shares then

held, rights to expire on June 1.
share. Proceeds—To pay an outstanding
bank loan due Sept. 30, 1962, and for general
corporate
purposes. Underwriters
The First Boston Corp. and
Eastman Dillon, Union Securities &
Co., both of New
York; Schoelikopf, Hutton & Pomeroy, Inc/, Buffalo,
N. Y.f and Granbery, Marache &
Co., New York.
per

—

Mary Carter Paint Co.
March 30 (letter of notification) 37,500 shares of com¬
mon .stock (par $1) tof which 25,000 shares are
being
offered by the company, out of authorized but unissued
Vtock, and 12,500 shares are being offered by John F.
Crosby, Spring Lake, N. J. Price—$8 per share. Proceeds

payment of outstanding loans and working

tal, and

to

selling stockholder.




(6/3)

Proceeds—For,,,

Address—P. d/;f 6007, Lambert Field, St. Louis, Mo. Underwriter^/ s
Newhard, Cook & Co. and Yates, Heitner & Woods, both W
purchase of additional flight equipment.
Box

of St.

Products,. Inc., Pacoletj A. C.
(letter of nptification) 2,000 'shares of 7% pre-y,
ierred stock. Tricer—At par ($50 per share).
Froceedsy^yJ
To pay. baril^, loa^is arid for general corporate
purposes^/'

May 11

UnderwTiteirs—A. M. Law & Go., Spartanburg,^. C.; and "■
Clark;. Lahdstreet 8c Kii'kpatrick, Inc., Nashville; Tenn. y
•

•

for

son,

Capital Investing

Office—Gunn

capi¬
Highway

'

owners.

Boulevard.

Jacksonville,,^

of

single-family dwellings
Underwriter—Pierce, 'Carrey

a

•

^\-y

■

/'/A'y c.:y, j y

Plan Fund,

market.

Inc., Pasadena, Calif.
ohm
shares of common stock (par $l),y;

Proceeds—For

investment.

Under-ly
Zp/y/j
y;,V; wd-V"
;

gage bonds due 1987." Underwriter—To be determined,'/
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld & Coy,//
Equitable Securities Corp., and Shields & Co. if jointly);
Lehman Brothers, Eastman Dillon, Union Securities A
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmarii
8c Co. (jointly); Merrill Lynch. Pierce. Fenner & SmitbV-

-

and Dean Witter &

Co. (jointly).
Bids -—Tentatively*
11 a.m. (EDT)
Aug. 27 but company on Aug. 22 decided to defe* *
sale pending improvement in market conditions. »SEC

had been expected to be received up to
on

/i-u.v:/'■///v.;vc.'3'•''//

Feb.

which

25, 1959 extended to June 16, 1959 period within*-i
may consummate fihancirig. ;
■
*.vlofew

company

•
Peoples Drug Stores, Inc.
May 19 filed 121,000 shares of common stock (par $5).y/
Price—To be supplied by amendment. - Proceeds—Fo*h I
expansion program. Underwriters—Alex Brown &-Sons>;f<!
Baltimore, Md.;- and: Kidder, Peabody & Co.^New Yorkif)
Offering—Expected within the next four weeks, yy
.^y
Perfecting Service Co.'-"

of

$100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital. Office—Suite 487,
795 Peachtiee Street, N.
E:, Atlanta, Ga. Underwriter—
None.
' / ;
■= y — yy
y- /y;:;/-y'y'

■

.

Defense

Minerals/ Inc.,? Keystone,
;,./ / /
May 4 (letter of notification) 300,000 shares of common

Feb. 26

Dak.

(letter of notification) 28,250 shares of common
for subscription by stockholders on/ r

stock to be offered
a

stock

(par 10 cents). Trice—$1 per share. Proceeds—
exploring and recovering strategic metals and pro¬
ducing same.
Underwriter
Caldwell
Co.,' 99 Wall

pro

($10

For

lata basis.
per

share).

inventories.

—

Rights expire in 15 days. Price—At
Proceeds—For accounts receivable

Office—332

Atando

pair;,/

an^V

Ave., Charlotte, N./ C.
;

Underwriter—None.

Street, New York. N. Y.

^

r/ ;r/

"

r.

-

Corp.; (6/1-5)

v

<

-

;

y

.

.

t*

^

k

Philadelphia Electric Co.; (6/3)
o/i;
May-:T filed 640,306 "shares r)f common stock (no par)*'
to be offered for subscription-by common stockholder^!
^of record -June 2, 1959, on the basis of one new sham,,;
for each/20 shares then held; rights will expire on June y
23.
Price—To be supplied by amendment.
eProceeds-j:
To repay "bank
loans and for construction 'program. /
Underwriters—Drexel &
Co.
and
Morgan Stanley & 7
Co., both of New York.

.

->-

April 29 filed 200,000 shares of common stock- (par one
Price—$3.75 per share. Proceeds—-To be applied
to the payment of an indebtedness owed to Wheaton
Glass Co.; for payment of bank
debt; for, research,- de->

cent).

yelopment, production and marketing;, for sales pro-,
motion; aud the balance for general working capital./
Office—2925 N. Broad Street,
writer—Chai'les Plohn & Co.,

-

Philadelphia, Pa. Under¬
New York.

i

offered in units of pine class A shares and one class B
share* Price—$100 per unit. Proceeds—To be available
for investment in real estate
syndicates and other real
estate. Offiee—9 Clinton St., Newark, N. J. Underwriter

i'i

0/

Phillips-Van Heusen Corp.
April 21 filed 69.210 shares of common stock,-to be offered in exchange for common stock of Kennedy's,
Inc^j,,
in the ratio of IV2 shares of Phillips-Van Heusen stock
for one share of Kennedy's stock.
/
v"*

Buildings of America, Inc.

April 6 filed 91,809 shares of class-A stock (par $1) and
10,201 shares of class B common stock (par $1) to be

—None.

Beach

Inc./ Jacksonville, • Fla.,1 and four: oth^r

-

Peckman

on

Office

~r>Kr'y,

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1989.
Proceeds—To redeem a like amount of 5% first inort-

Blvd., Los Angeles 17, Calif. Under¬
)
/>

Electronics

home

:

Price—At

North American Acceptance
Corp.
April 29 (letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for subscription

Nuclear

to

May 19 filed 20,000

May 5 (letter of notification) 150,000 shares of common
stock (par 50 cents). Price—$2 per share. Proceeds—To'
acquire fishing tools for leasing; and for working capital.

S.

,

writer—Investors Investments Corp., Pasadena, Calif.

writer—Waldron & Co., San Francisco 4, Calif.

Northwest

Office—3850

Wulbern,

firms.

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For
organizational ex-penses and first three months' operational expenses. Of-/

denominations

.

Business—Construction

for sale

April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds — For working;
capital and investments.
Office—Hartsdale, N. Y. Un¬
derwriter—None.
i.

in

sale.

Fla.

Corp.,

stockholders

.'

Pearce-Uible Co.

May 11 filed 555,000 shares of common stock Xpar $1)
which 500,000 shares are to be offered publicly, and .the"^,'/.
remaining 55,000 shades are subject to sale under ^tqek-f /
Purchase Options granted to employees of the
company., >x
Price—$3.50 per share to public. Proceeds—For acquisi-j.y
tion 'and development of land and construction of houses

•

.

California

51,847 outstan ding shares
*: commpn/
Xpar; $1)/ being offered "only, to stockholders
.df The Refinite Corp. and will not 4>e offered/,,,
to the general public." Price—$3 per share/tProceeds—TTo selling stockholders,-The Refinite Corp. Office—8400 ?
Santa Monica'-Boulevard/ Los Angeles, Calif. Underwritr
er—None. Statement effective May 15.
y

-

To be designated.

of

directors

,

-

•

filed

30

stock

(letter of notification) 150,000 shares of commo&^stock,
Price—At par. ($2 frer* share).f Proceeds—
For new equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich.

-'

Paddock

March

April 20

-

Louis, Mo.

Paco

April 29 filed 20.000 shares of common stock (par 10*
cents). Price—To be supplied by amendment. Proceeds—C
To retire a $100,000 outstanding bank loan and the bal¬
ance will be used for general corporate purposes. Office—
Westbury, Long Island, N. Y. Underwriter — Torpie &
Saltzman, New York.
*"
.

fice—1250 Wilshire

.

common, class B common, (not ■ including class B shares.Z
held by voting trustees), or voting trust certificates fout
class B common..
Price—$4.75 per share.

.•

Business

,

May 20 filed 132,944 shares of general common slOdkA*|
(par $1) to be offered to-holders of class A and class J B'
stock (not- including class B common held by V i
voting trustees) and holders of voting trust certificate^
for class. B common stock, on the basis of one mew
sharpy
of general common stock for each nine shares of class/A;

.

Nationwide Small

Virginia, Minn. •(/:/'
May 20 filed 200,000 shares of -common stock (par 10 \ i'|
cents). Price—$3 per share: Proceeds — For repayment
of outstanding obligations and for working capital,
Un-y^l
derwriter—Investment Bankers of America. Inc., Wash- }t
[
ington, D. C.
'
/
«»»;•>■*
&fh dc

common

Multi-Amp Electronic Corp. (6/1-2)
May 1 (letter of notification) 99,500 shares of common
stock (par 10 cents).
Price—$3 per share.
Proceeds—
To purchase building; for research, development, equip¬
ment and machinery,
etc.; and for working capital.
Business—Portable and laboratory instruments for test-'
ing etc.
Office—465 Lehigh Avenue, Union, N. J. Un¬
derwriter—G. Everett Parks & Co., Inc., 52 Broadway,
New York, N.Y.
'
!

National Citrus Corp.

/;.:>y;//f/://'

Corp., Wilmington, Del.

..

e
Mortgage Corp. of America
April 10 filed $1,000,000 of 4%% collateral trust notes,
due May 1, 1969-79. Price—100% and accrued interest.
Proceeds—For repayment of loan. Office—100 St. Paul
Street, Baltimore, Md. Underwriter—None. Statement
effective-May 20.

!7

Co.

• Ozark Air Lines, Inc.

May 4 filed 15,000 shares of common stock (par $1). Price
—To be supplied by amendment. Proceeds—For working
capital and purchase of equipment. Underwriter—Kid¬
der, Peabody & Co., New York,

by

Mansfield Tire & Rubber Co.
(6/3)
May 7.,filed $5,100,000 of convertible subordinated de¬
bentures, -due June 1, 1974, to be offered for subscription
by common stockholders of record on or about June 2,
1959; rights to expire on or about June 18. Price—To be
supplied by amendment. Proceeds—To pay short-term
bank loans, and to augment
working capital. Office
515 Newman St., Mansfield, Ohio.
Underwriter—A. G.
Becker & Co., Chicago, 111.

—For

I

(6/15-19)

Narda Ultrasonics Corp.

&

• Oreclone Concentrating Corp.,

Address—P. O. Box 672, Odessa, Texas. Underwriters—

M. & S. Oils Ltd.

Price—-$22

Laird

May 21 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For
general corporate purposes. Business—Develops and pro-duces components
for. radar systems. Underwriter—
Lehman Brothers, New York.

Nedow Oil Tool Co.

May 11 filed 390,000 shares of capital stock. Price—60
cents per share.
Proceeds
For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Blbck, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities

.

^ Microwave Associates, Inc., Burlington, Mass.

Mohawk Rubber Co., Akron, Ohio

stock. Price—To be sup-,

common

,

Corp. of California .
May 15 (letter of notification) $80,000 of 12-year 5Vz%
capital debentures. Price—At face amount. Proceeds—,
For working capital.
Office — 333 Montgomery Street,
San Francisco, Calif. Underwriter—Guardian Securities ;
Corp., San Francisco, Calif.
) ^

Exploration Co., Inc., Arnett, Okla.

Bee. 23 filed 400,000 shares of common stock. Price—$2
per share. Proceeds—For machinery and equipment and

exploration purposes.

tures and 10 shares of

p

plied by amendment. Proceeds—For expansion, general
corporate purposes,, and the balance for working cap- .;.'
ital. Office—Beacon Bldg., Tulsa, Okla.
Underwriter-^-,..*

Co., Inc., New York.

Mercantile Acceptance

8

Underwriters

,

(6/15-19)

N. Y. Underwriter—Amos Treat &

Knox Corp., Thompson,

May

/

•

ible

•

,

.

May

Feb.

.*

.

,

ic Oklahoma Cement Co. (6/15-19)
*,
May 21 filed $3,600,000 of subordinated debentures due
1974, and 360,000 shares of common stock (par 25 cents),
to be offered in units each consisting of $100 of deben-

14 filed 200,000 shares of common stock (par 20
cents). Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,

plan.

Medearis Industries, Inc.

-

Piedmont Aviation, Inc. *
May 6 (letter of notification) 72,700 shares of
-

stock

..

'

7

common

(par $1) to be offered to stockholders at the rate^

of 1/16 of

a

share for each share held

as

of May 4,

1959."

r

olume

5850

Number

189

.

.

The Commercial and Financial Chronicle

.

43

(2447)

■\x

rice—$3.75 per share.

Reeves, the selling stockholder. Underwriter—-None.
public offering is planned.

Proceeds—For working capital,
Airport, Winston-Salem, N. C.\

ddress—Smith Reynolds
nderwriter—None.

Chemicals, Inc. (6/16)
400,000 shares of common stock. Pricethe then current price
on the N. Y. Stock Exchange. Proceeds—To be added to
the general funds of the company; and it is expected that
about $10,000,000 will be applied to its construction pro¬
gram and the balance added to working capital. Office—
525 North Broadway, White Plains, N. Y. Underwriter—
Blyth & Co., Inc., New York.

rd &

& Polymers, Inc. ;

May

Smith, New York City.

ay*!l filed 100,000 shares of common stock (par $1).
by amendment. Proceeds — For
orking capital and other corporate purposes. Office—•
3-20 34tb Street, Long Island City, N. Y. Underwriter—•
idder, Peabody & Co., New York.
"
..;
A

stockholders

company

>

orking capital and to reduce bank borrowings.
Office
Calif. Underwriter—
Alstyne, Noel & Co., New York.
;;

J/:

at the rate

Underwriter—None:

Huron, Mich.

&

per

of

Producers Fire

:ouver,

;./v". /

•

,

;

.

* capital.

J;

A' ;

Public Service Electric & Gas Co.

(6/2)

May 7 filed $50,000,000- of first and refunding mortgage
bonds due June 1, 1989.

Proceeds

general funds of the company ana

To bemadded to the
used for general cor¬

—

portion of the
cost of its current construction program. Underwriter—
To he determined by competitive bidding. Probable bid¬
der*; Halsey. Stuart & Co. Inc.;-The First Boston Corp.;
KulVii1, Loeb', & Co. and Lehman Brothers (jointly);
Morgan Stanley & Co. and Drexel & Co. (jointly). Bids
Tentatively expected to be received up to 11 a.m.
(EDT) on June 2, at 80 Park Place, Newark, N. J. s ■ • Vporate

purposes,

including payments of

a

New York (6/1-5)
*'A
shares of common stock./par five
cents), Price—$3 per share. Proceeds—To. repay loans
ant^for general corporate purposes. Businessr—Manu7
fact'Urers and packager of proprietary drug items.
Un¬
derwriter
Richard Bruce. & Co. Inc., 26 Broadway,
Purepac Corp.,

March 31 filed 260,000

—

New York 4, N. Y.
•V.Vf

Puritan Chemical

Corp.
larch 30 filed 500,000 shares of capital stocks? (par 10
cents.
Price—$1.25 per share.' Proceeds—For -working
capital and, general corporate purposes. Office—2: South
Broadway4, Lawrence, Mass. Underwriter—Dunne & Co.,
eW York.
Offering—Expected any day.
Pyrometer Co. of America, Inc.
April 27 filed 200,000 shares of common stock (par 50
Price—$3 per share. Proceeds—For inventory,
expansion of present facilities, equipment, working cap¬
ital <and other general corporate purposes. Office—Penncents).

del>;Pa. Underwriter — Arnold Malkan & Co^.Inc., 26
roadway, New York. Offering—Expected in about three
weeks.
'
V/-r"
/"A v/
'
* ""A
.

.

.

Radar Design Corp.,

Syracuse, N. Y. (6/29)
May 26 filed 120,000 shares of common stock ($1 par).
Price—$3. per share. Proceeds — To liquidate notes and
,

mortgages, and for new equipment and working capital.
Underwriter—Charles Plohn & Co., New York.
•
Rapid-American Corp., New York '
: s
k-- >
4
April 13 filed $7,209,640 of 5%% convertible subordin¬
ated debentures due April 30, 1964, being offered for

subscription by common stockholders in the ratio of
$100 of debentures for each 10 common shares held of
recbrd-

Mayv 12 (with an oversubscription- privilege);
rights to expire on June 5. Price—At par (flat). Pro¬
ceeds—To be applied in part to the repurchase and re¬
tirement of the company's 5%% convertible subordin¬
ated 'debentures presently outstanding, in. full,_ at par
Fives accrued- interest to
balance

for general

None.
..

the

date

corporate

of

and the
Underwriter—

payment,

purposes..
_i

■

".

"

s

j

.

-

-

»

Raytheon Manufacturing Co.

May 1 filed 350,602 shares of

common stock (par $5) and
100,000 shares of 5*2% series (cumulative), serial pre¬
ferred stock (par $50).' These shares were or may be
issued as a result of the merger, of Machlett Labora¬
tories, Inc., into Raytheon Co. (formerly Raytheon Man¬
ufacturing Co.).
*" * -'
.* : i'
t
.

..

Reeves Soundcraft Corp.,
April 30 filed 22,000 shares of

.

Danbury, Conn.
stock (par five
upon exercise

common

To

pay

Investing Fund of America, Inc.

of

one

new

share for each three shares heir

—

Pacific Securities Ltd., VaD

May 4 filed $5,580,000 of Participations in

/•—None. ),"

• Royal Dutch Petroleum Co./Shell Transport &
:
Trading Co. ,. ' '
May 27 Royal Dutch filed 794,203 shares (nominal par
.value of 20 Netherlands Guilders each), and Shell Trans¬

port filed 1,191,304 ordinary shares (1 nominal value).
According to the prospectus, an offer has been made
by Royal Dutch and Sheet Transport to Canadian Eagle
Oil Company Limited, for the whole of its assets and
business. Pursuant to the offer, there would be allotted
to Canadian

Eagle, for distribution in kind to its share¬

holders, 3,971,012 fully paid shares of Royal Dutch and
5,956,518 fully paid ordinary shares of Shell Transport.
Bataafse Petroleum Maatschappij, N.V., a company of

of companies, which owns
capital of Canadian Eagle,
will waive its right to participate in such distribution.
Canadian Eagle shareholders owning the remaining 23,826,072 ordinary shares of Canadian Eagle will there¬
fore receive two Royal Dutch shares and three Shell
Transport ordinary shares in respect of every 12 shares
of Canadian Eagle held. The offer is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 21, 1959. After the shares of Royal Dutch and Shell
Transport have been distributed to Canadian Eagle
shareholders, Canadian Eagle is to be dissolved.
the Royal Dutch/Shell group
about 21% of the issued share

Ryan Aeronautical Co., San Diego,

Calif.

May 26 filed 330,000 shares of common stock, of which
275,000 shares will be offered on behalf of the company
and 55,000 for selling stockholders. Price — To be sup¬

plied by amendment. Proceeds—Amount accruing to the
company will be added to working capital. Underwriter
—Dean Witter & Co.,* San Francisco, Calif., and New
York City."

Joseph Light & Power Co. (6/16)
filed $4,500,000 of first mortgage bonds due
.June 1, 1989. Proceeds—To repay bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
•

St.

May

18

able bidders:

Halsey, Stuart & Co. Inc.; Otis & Co., Inc.;

Smith, Barney & Co., Glore, Forgan & Co. and Blair &
Inc. (jointly); Eastman Dillon, Union Securities &
Co.; White, Weld & Co.; Equitable Securities Corp. Bids
—Expected to be received up to 11 a.m. (EDT) on June

-Co.

16.

San Diego Imperial Corp.
(6/15-19)
May 18 filed 1,400,000 shares of common stock (par $1).
be supplied by amendment. Proceeds —-For
•

Price—To
further
vance

acquisitions; to repay two bank loans; for ad¬
a
subsidiary; to repay the remaining unpaid

to




North Sheridan Rd., Chicago 14, 111.

City and New York.

Underwriter—None.

Corp.
Mardi 30 filed 1,550,000 shares of common stock (par
10 cents), of which 200,000 shares are to be offered for*
the account of the company, and 1,350,000 shares for
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. Office—
Central Ave. and Mechanic St., Silver Creek, N. Y. Un¬

derwriter—Maltz, Greenwald & Co., New York.
Sip'n Snack Shoppes, Inc., Philadelphia, Pa.
March 31 filed 200,000 shares of common stock. Price—
S2 per share. Proceeds—To pay loans and for new equip¬
ment. Underwriter—Sano &

Co., New York.

South

Division

St., Northfield, Minn.

Underwriter

;

• Smith (H. C.) Oil Tool Co. (6/15-19)
May 20 filed 100,000 shares of capital stock (no par).
Price
To be supplied by amendment. Proceeds — For
research and development of new products; to increase
—

inventories; and for the acquisition of new production
machinery and tools. Office — 14930 South San Pedro
Blvd., Compton, Calif. Underwriter—William R.
& Co., Los Angeles, Calif.
/

Staat$

A

Soundscriber Corp.

May 13 filed 126,254 shares of common

stock to be of¬

subscription by common stockholders at the
of one new share for each three shares held. Price
for

fered
rate

per share. Proceeds—To
curred and to be incurred in

—$14

troduction of

a

new

be applied for costs in¬
connection with the in¬

line of office dictating

equipment;

payment of installment notes with interest; payment of a
bank indebtedness; payment and interest on notes pay¬

Office—8 MidUnderwriter—*

able; and for general corporate purposes.
dletown Avenue, North Haven, Conn.
None.
•

•

.

Southern

Electric

Generating Co.

/

(5/28)

April 17 filed $25,000,000 of first mortgage bonds due
1992.
Proceeds—To be used in connection with finance
tng the cost of constructing a steam-electric generating
on the Coosa River in Alabama and related fa¬

station

and for the repayment of $4,000,000 of shortincurred for such capital expenditures.
Underwriter—To be determined by competitive bidding.
Probable bidders:-Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co.; Equitable Securities
Corp. and Drexel & Co. (jointly); Merrill Lynch, Pierc§»
Fenner & Smith; Kidder, Peabody & Co. arid White,
Weld & Co. (jointly); The First Boston Corp,
BidsExpected to be received up to 11 a.m. (EDT) on May 28
cilities;

term bank loans

at the

office of Southern

Netv York417, N. Y.

Services, Inc., 250 Park Ave/,

V

Spartans Industries, Inc. (6/8-12)
./
May 12 filed 200,000 shares of common stock (par $1),
Price—To be supplied by amendment.
Proceeds—For
.

general corporate purposes. Business—A major producer
distributor of a diversified line of popular price,

and

apparel for men, women and children. Office
St, New York 1,-N. Y. Underwriters —r
Hammill 8c Co., New York; and J. C. Bradford
Co., Nashville, Tenn.
\

basic style
—1

West 34th

Shear son,
&

•
Spiegel, Inc. (6/5)
May 8 filed $15,417,500 of convertible subordinated de?
bentures due June 1, 1984, to be offered for subscriptioi*

by common stockholders of record on or

about June 5,

the basis of $100 principal amount of debentures
for each 12 shares held; rights to expire on June 22.
Price—To be supplied by amendment.
Proceeds—To bq
added to the general funds of the company to be avail¬
able principally to finance its increasing accounts re¬
ceivable. Underwriter—Wertheim & Co., New York.
1959,

on

Standard Electric Co., Inc.

-

«

\

(letter of notification) 10,000 shares of com¬
$25). Price—$27.50 per share. Proceeda
—To purchase equipment, erect arid equip a semi-fire¬

March 31
mon

stock (par

proof building and for working capital.
Austin Highway, San Antonio, Texas.
Bache & Co., San Antonio, Texas.
•

Sterling Television Co.,

Office —3016
Underwriter-^

Inc.

(letter of notification) 200,000 shares of Clasi
A stock (par 25 cents). Price—$1 per share. Proceeds—
For general corporate purposes, and to acquire television
film series for distribution. Office—6 East 39th St., New
March 31

York 16,

N. Y. Underwriter—R. A.
5, N. Y.

Holman & Co., Inc.,

New York

^ Studebaker-Packard Corp.
V
May 26 filed 500,000 shares of common stock to 'bo
offered to certain officers and key employees of thO
company

under the stock

Suffolk

May 8

Gas

ownership plan.

Corp.

(letter of notification) 6,000 shares of common
$2.50) to be offered for subscription by stock¬

stock (par

to public. Price—-To stock¬

N. Main Street,
Co., Inc., Lynch¬

burg, Va.
Sunray

(G. T.) Co.
:March 23 filed 42,500 shares of common stock, which
iare to be offered and sold first to present stockholders
at the rate of one new share for each eight shares held
on April
1, 1959.. Price—$10 per share. Proceeds—For
increased plant facilities, for purchase of equipment,
working capital and other corporate purposes. Office—
Schjeldahl

convertible

Creek Precision

Silver

holders; unsubscribed shares

—Craig-Hallum, Inc., Minneapolis, Minn.

Proceeds—To Hazard E.

A.ug.'19 (letter of notification) $250,000 of 6%

debentures due Sept. 15, 1963 to be offered for subscript
tlon by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital; Office — 3171

holders, $6.75 per share.
Office—151
Suffolk, Va. Underwriter—Strader &

purchase price of the company's new of¬
and for other corporate purposes. Office—
1400 Fifth Ave., San Diego, Calif. Underwriters—White,
Weld & Co., New York; and J. A. Hogle & Co., Salt Lake

.;

•

Co.

Hotel

fice building;

202

•

investment.

Sheridan-Belmont

balance of the

of

Price—$3 per share.

Partnership

Interests, to be offered for sale in units. Price—$10,000
per
unit.'
Proceeds—For general corporate purposes.
Office—60 East 42nd Street, New York, v Underwriter

cents) to be sold to Lewis Cowan Merrill
option,.

For

Petroleum

Roosevelt-Consolidated Building Associates

Casualty Co.

&

Proceeds—For -working

share.

Underwriter—None.

June 17.

on

—

Underwriter
Canada.

capital.

-

Price—$5

of

of May

an

•

issued by Dependable Life Insurance Co. and to certain
agents and brokers

as

oversubscription privilege). The subscriptioi
period will be for 30 days following issuance of subscription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to workini
(with

Exchange. Proceeds—To selling stockh¬

Fire

amount

Ltd., Alberta, Canada
June 26 filed-1;998,716 shares of common stock (par $1)
Of this stock, 1,174,716 shares are to be sold on behalf othe company and 824,000 shares for the account of cer
tain selling stockholders. The company proposes to offe
the 1*174/716 shares for subscription by its shareholder

;?

Casualty Co., Mesa, Ariz. *
March 31 filed 400,000 shares of common stock to be
offered for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
Producers

principal

shares held

Underwriter—First Mutual Securities of America,

Richwefl

;

—

merican Stock

$100

for

pril 17 filed 90,000 outstanding shares of common &tock,
Related to the current market price/off the

olders. Office—Port

of

common

tAt Reynolds Metals Co.
May, 20 filed 255,000 shares of common stock, reserved
issuance pursuant to the company's Stock Option
Plan for executives and key employees.

Precon

rice

rate

Inc.

ah'

Inc.

Proceeds

Research

N. J.

-12177 Montague Street, Pacoima,

Pressed Metals of America,

the

Feb. 24 filed 200,000 shares of capital stock. Price—At
market. Proceeds—For investment
Office—Englewood,

—

Electronics Corp.
(6/8-12)
1
1
;
'it 6 filed 175,000 shares of common stock (par 75
eiits). Price — $5 per share. Proceeds — For working
apital; to reimburse the predecessor for certain develpment expenses; for inventories and work in process;
nd/other general corporate purposes. Office—120 E.
1st- St., New. York, N. Y.
Underwriters—Charles Plohn
Co. and Netherlands Securities Co., Inc., both of New
ork, N. Y.
i

(6/3)

Corp.

Price — At principal
debt and for develop¬
ment of present properties and acquisition and develop¬
ment of additional oils and gas properties. Underwriter—
Emanuel Deetjen & Co., New York.
amount.

100,000 shares for certain selling
$7.25 per share. Proceeds—For

and

Price

at

29; rights to expire

.

the

Oil

debentures for each 300

Poly Industries, Inc. (6/1-5) ^
,1 . :
"ai"4 filed 200,000 shares of common stock (par $1);
f rihich 100,000 shares are to be offered for the account
f

Reiter-Foster

March 30 filed $1,500,000 of 6% convertible debentures
due 1969, to be offered for subscription by common

(6/1-5)

rice—To be supplied

tockholders.

22 filed

shares

Related at the time of offering to

•

Polarad Electronics Corp.

• Scudder Special Fund, Inc., New York
19 filed (by amendment), an additional 200,000,
of capital stock.
Price—At market. Proceeds—

May

Reichhotd

(6/19)
lay*'11 filed 143,750 shares of common stock (par 10
cents).' Price — Expected at $4 per share. Proceeds
-For construction of a plant in Rhode Island and for
eneral corporate purposes. Business—Primarily engaged
n the compounding
and coloring of thermoplastic raw.
aterials, and the sale of the resultant product. Office—
icksville, Long Island, N. Y. Underwriter—Filor, BulPlastic Materials

•

No

Mid-Continent Oil Co.

i

May 19 filed 525,000 shares of common stock to be of¬
fered in exchange for common stock of Suntide Refining
Co. in the ratio of one share of Sunray for each three
shares of Suntide.

The offer is conditional upon

the de¬

posit of sufficient shares of Suntide so that Sunray. will
own
at least 90% of the outstanding Suntide shares.
Underwriter—None.

Continued

on

page-44

^4

The Commercial aiul Financial Chronicle

(2448)

Continued jrom page 43
Superior Window Co. (6 8-12)
IVTay 15 filed 50,000 shares of 70-cent cumulative con¬
vertible preferred stock (par $8) and 125,000 shares of
class A common stock (par 10 cents). Price—For pre¬
ferred stock, $10 per share; and for common stock, $4
per share. Proceeds—To purchase the assets of Superior
Trucking Co.; for repayment of notes; and for general
corporate purposes. Office—625 E. 10th Ave., Hialeah,
I/la.

tinuing construction program, including the retirement
connection with such program.
Underwriter—To be determined by competitive bidding.

of bank loans incurred in

'

Underwriter—Cruttenden, Podesta & Co., Chicago

end New York.

Halsey, Stuart & Co. Inc.; White, Weld
Merrill Lynch, Pierce, Fenner & Smith and East¬
Dillon, Union Securities & Co. (jointly); The First
Boston Corp.; Kuhn, Loeb & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.; Drexel & Co. and
Eastman Dillon, Union Securities & Co. Bids—Expected
to be received up to 11 a.m. (EDT) on June 16 at 1401
Arch St., Philadelphia 5, Pa.
:
I
Probable bidders:

& Co.;

Inc.
May 25 filed 110,000 shares of common stock (par 10
cents. Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;
for certain expenses and for working capital. Office—
49 .Tones Road, Waltham, Mass.
Underwriter — David
Barnes & Co., Inc., New York.

United

Technology, Inc.
May 15 filed 325,000 shares of

common stock
(par 10
Price—$4 per share.
Proceeds—To pay off in
Cull the subscription' of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and

Illuminating Co. of New Haven

May 7 filed 350,501 shares of common stock (no par) to
be offered for subscription by common stockholders on
the basis of one new share for each eight shares held
of record May 26, 1959; rights to expire on June 18.
Price—$26.50 per share. Proceeds—To finance in part
the company's 1960-1961 construction program, including
the payment of current bank loans incurred in connec¬
tion

O

this

with

program.

Underwriter—None.

United Improvement & Investment Corp.
25 filed 1,238,994 shares of common stock

March

cents).

(par
$2.60), of which 809,195 shares are to be offered in
exchange for outstanding stock of Lawyers Mortgage &

for

four

working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E; L.
Wolf Associates,
Inc., Washington, District of Columbia.
• Telectro Industries
Corp.

(6/8-12)

May 6 filed 200,000 shares of common stock (par 10
Price—$3 per share. Proceeds—For additional
machinery and equipment; to retire outstanding balances

c£hts).
Of

V-loan to

a

a

bank and

to

a

comrneroial credit

com-

pa?iy; and the balance will be added to working capital
and used for general corporate purposes.
Office—35-16

371h St., Long Island City, N. Y.
D. Blauner & Co., Inc., New York.

Underwriter—Milton

Teleflex Ltd.

(6/1-5)
May 6 filed 75,000 shares of common stock (no par),
of which 50,000 shares are to be sold for the account of
the

and 25,000 shares for Teleflex Products
Price—To be supplied by amendment. Proceeds—

company

Ltd.

l/or additional

equipment and working capital. Office—
King St., W., Toronto, Canada. Underwriter—Drexel
& Co., New York.
461

Ar Telemeter Magnetics,

Inc.
filed 150,000 shares of common stock (par 10
Price—To be supplied by amendment. Proceeds
be applied to the reduction of short-term bank

26

May

cents).
—To

loans

incurred
of

sequence

for

working capital purposes
expanding business of the

the

Business—The

as

a

con¬

company.

is engaged principally in de¬
sign, development, manufacture and sale of digital data
handling equipment and components for the computer
company

find data
processing industry.
Underwriters—Lehman
Brothers; Hallgarten & Co. and Hemphill, Noyes & Co.,
fell of New York.
Offering—Expected sometime in June.

Ten Keys, Inc.,
Providence, R. I.
April 28 filed 973,000 shares of capita 1 stock
(par $1).
J'rice—$5.40 per share. Proceeds—For investment. Office
—512 Hospital Trust
Bidg., Providence, R. I. Distributor
—E. R. Davenport &
Co., Providence, R. I.

Texfel Petroleum
Corp.
March 19 filed 550,000 shares of common
stock (par $1).
Price—To be supplied
by amendment. Proceeds—For
repayment of the company's 5% notes held
ican

by

an

Amer¬

bank, and the balance

funds

will

ana

be

used

will be added to its
general
in connection with its various

operations, and for general corporate
ing

purposes, includ¬
purchase obligations on certain
prop¬
for the purchase of warehouse inventories.

payment

of

erties, and
Office—Republic

National

JJndenvritcrs—Bache
New York.

Bank

Bldg.,

Dallas, Texas.
& Co. and Allen & Co., both of

Thriftimart, Inc. (6/15-19)
May 18 filed $8,000,000 of convertible

subordinated de¬

bentures due 1980. Price—To be
supplied by amendment.
For expansion
program. Office
1489 W.
Washington Blvd., Los Angeles, Calif. Underwriters—

Proceeds

—

—

jteynolds & Co., Inc., New

•Co., Los Angeles, Calif.

York; and Lester, Ryons &
'

Transcon Petroleum &
Development Corp.,
Mangum, Okla.
'
March 20 (letter of
notification) 300,000 shares of

mon stock.

Price—At

17 filed

Office—South

com¬

par

235,000 shares of capital stock

Per. shere.

Proceeds — For

Main
Street, Greenville,
writer—To be supplied
by amendment.

S.

(par $1).
investment.
C.
Under¬

Tyce Engineering Corp.
May 6 (letter of

notification) 100,000 shares of

(no par).

Price

—

$3

per

share.

common

Proceeds—For

jworking capital
Calif.

Office —809 G. Street, Chula Vista,
Underwriter—Pacific Coast Securities
Co., San

Francisco, Calif.

Employees

•

April 16 filed 2,000,000 shares of
common stock (par
$5).
-$10 per share. Proceeds
For acquisition of
operating properties, real and/or
personal, includinf
—

or

liefs' e(luiPment and office

Office

Sresiden^°ne
•

United

—

space, by
Under-

Wilmington, Del.

L> McKee

Portland, Ore., li

—At par ($10 per share). Proceeds—To
purchase
tional machinery and equipment;, research and

Gas

Improvement

Co.

(6/16)

pected in the next 10

the
of

basis

of

Lawyers

one

share of United for each

its

before

recent

one-for-ten

split, or 2Vz shares of United for each share
of Lawyers after such split. Lawyers' stockholders may
rAund out their allocation to the next full share by

purchasing not

more

than % of

a

or

15 days. ;

299 additional shares at

$5 per share, on a one-for-four
The company also proposes to offer 187,500 shares
exchange for all the outstanding common stocks of
Margate Homes, Inc., Broward Engineering Co., and
Margate Construction Co., certain outstanding debt obligatidns of Marga't'e Homes, Inc., and $62,500 in cash.
Proceeds—For working capital and general corporate
purposes.
Office—25 West 43rd St., New York, N. Y.
Underwriter—Allen & Co., New York, for 242,299 shares
basis.
in

common

Corp. (6/9)
May 19 filed 150,000 shares of common stock (par 16%
cents) together with $1,250,000 of 9% subordinated un¬
secured bonds, due Dec. 31, 2000. Price—To be
supplied
by amendment. Proceeds—For general corporate pur¬
poses. Office—1500 North Dale Mabry Highway, Tampa,
Fla.

Underwriter—Alex. Brown &

Sons, Baltimore, Md.

Wellington Electronics, Inc. (6/15-19)
May 6 filed 240,000 shares of common stock

Office—379-17th St., Ogden, Utah. Underwriter—Schwabacher & Co., San Francisco, Calif.
Utah Minerals Co.

April 11

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
mining expenses. Office—305 Main St., Park City
Utah. Underwriter—Walter Sondrup & Co., Salt Lak*
City, Utah.
>
stock.

—For

.

>

j;

(par

75

cents.

Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to

be leased to capacitor manufac¬
turers; and for working capital. Office — Englewood,
Underwriter—Charles Plohn & Co., New York.;

N. J.

y

Will

Ross, Inc.
7
May 13 filed 88,512 shares of common stock (par $2.50).
Price—To be
supplied by amendment. Proceeds—To
selling stockholders. Office—4285 North Port Washing¬
ton Road, Milwaukee, Wis.
Business—A domestic dis¬
tributor of hospital supplies, equipment and
furnishings.
-

Underwriter—Blunt Ellis &

Simmons, Chicago, 111. Of¬

fering—Expected in June.

,

Worcester Gas

Light Co. (6/18)
May 8 filed $5,000,000 of first mortgage sinking fund
bonds, series C, due June 1, 1979. Proceeds—To be ap¬
plied to the cost of the company's construction program,
including $4,350,000 of advances for construction. pur¬
poses by Worcester's parent, New England Gas & Elec¬
tric

Association.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blair & Co. Inc.; Kidder,
Peabody & Co. and
White, Weld & Co. (jointly); Coffin & Burr, Inc. and
Estabrook & Co.

11:30

stock.

-/ Utah Concrete Pipe Co.
April 27 (letter of notification) 41,300 shares of common
stock (par $1). Price—$7.25 per share. Proceeds—To be
used to reduce long-term debt; improvement and
expan¬
sion of Ogden plant and for addition to working
capital.

mon

(Jim)

share at $1.25 for each

Va share needed. In addition, a stockholder who accepts
United's offer will have privileges to subscribe to 242,-

of

★ Walter

(EDT)
bridge, Mass.
a.m.

(jointly). Bids—To be received up to
on June 18 at 10 Temple St., Cam¬

Worthington Products, Inc. (6/8-15)
May 8 (letter of notification) $150,000 of 7% convertible
subordinated debentures due May 15, 1964 and
15,000
shares of common stock (par 25 cents) to be offered in
units of $500 of debentures and 50 shares of stock. Price

—$500

per

unit.

Proceeds—For advances to Nautilus, a

subsidiary, for equipment and working capital; alsoifor
working capital of parent and molds and dies for. new
accessories. Business—To design and sell marine prod¬
ucts and boating accessories. Office—441 Lexington Ave.
New York, N. Y. Underwriter—B. Fennekohl &
Co., New
York, N. Y.

Utah Oil Co. of New

York, Inc.
May 6 (letter of notification) 300,000 shares of capital
stock. Price
At par ($1 per share). Proceeds — Fox

Prospective Offerings

—

development of oil and

gas lands.

Office—574 Jefferson

Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
Utility Appliance Corp., Los Angeles, Calif.
April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share.
Proceeds—To
selling stockholders. Office—4851 South Alameda Street,
Los Angeles 53, Calif.
Underwriter — Dempsey-Tegeler
& Co., Los Angeles, Calif.

• Victoria Raceway
May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds).
Price—$4.50 per share. Proceeds—
To construct and operate a
racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre
Dame Avenue at

King Street, Winnipeg, Canada. Under¬
Offer¬

Virginia Electric & Power Co. (6/2)
April 28 filed 710,000 shares of common stock (par $8)
to be offered for subscription
by common stockholders
the basis of

one

new

share for each 20 shares held of

record June

2, 1959 (with an oversubscription privilege);
rights to expire on or about June 18. Proceeds—For
program.

Underwriter—To be

determined

by
competitive
bidding.
Probable
bidders:
Merrill
Lynch, Pierce, Fenner & Smith, Inc.; Stone & Webster
Securities Corp. Bids — To be received up to 11 a.m.
(EDT) on June 2 by the company in Room 238, 43 Ex¬
change Place, New York, N. Y»
<
•

Vocaline Co. of
America, Inc. (6/15-19)
May 19 filed 210,000 shares of common stock (par $1.50),
of which 180,000 shares are for the
account of the com¬
pany and 30,000 shares for selling stockholders. Price—
To be supplied
by amendment. Proceeds
To retire
notes, to expand facilities and for working capital and
general
corporate purposes.
Underwriter
O'Neill & Co.,
Inc., New York.

—

Aerojet-General Corp. (6/10)
May 19 it was announced that the company plans early
registration of at least 200,000 shares additional common
stock.
Proceeds—For
expansion.
der, Peabody & Co., New York.

Underwriter—Kid¬

★ Alabama Gas Corp.
May

21

it

a

announced

that

the

„

plans to
$4,000,000 of first mortgage bonds. Proceeds—To
pay construction costs.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
was

company

issue

&

art

Co.

Inc.; White, Weld & Co., Stone & Webster
Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp
(jointly). Offering—Expected late August or early Sep
Securities

tember.

•

on

★

George,

Vulcan Materials
Co., Mountain Brook, Ala.
May 7 filed 252,526 shares of common
stock, of which
142,526 shares represent the balance of 250,000 shares

★ Alabama Gas Corp.
May 21 it
the

was

issuance

$100).

announced that the company contemplate
of

Proceeds

shares of preferred stock (par
pay construction costs.
Under¬

30,000
—

To

writers—May be White, Weld & Co., New York; an
Sterne, Agee & Leach, Birmingham, Ala.
Offering
Expected late August or early September.
Bank of

Commerce, Washington, D. C.

(5/29)

Feb.

26 stockholders of the Bank approved the sale o
2,000 shares of capital stock (par $100) to holders o
record May 29, 1959, on the basis of one new share fo
each three shares held; rights to expire on June 30
Price—$150 per share.
Proceeds—To increase capita
and surplus.
Bank of

May 1, it

Montreal

^

announced Bank is offering to its stock¬
17, 1959 the right to subscribe
on or before July 10,
1959 for 675,000 additional shares
of capital stock on the basis of one new share for eac*

holders

was

of record April

eight shares held. Price—$32 per share, payable in 10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co., Montreal,
Canada.

upon the exercise of options granted
key em¬
ployees under the company's Employees Stock
Option
Plan. The
remaining 11G,000 shares are to be issued to
stockholders of Greystone Granite
Quarries, Inc., and
Pioneer Quarries
Co., both North Carolina corporations,
and to certain other
parties in exchange for all the out¬
standing capital stock of Greystone and Pioneer and

*

,

mon

certain real and
personal properties operated under lease

three

British

Industries

Corp.

May 12 it was announced sale of 75,000 shares of

com¬

stock is

planned, of which half will be offered for
the account of the company, and the remainder for th
account of a selling stockholder.
UnderwTiter—Emanuel,
Deetjen & Co., New York. Registration — Expected in
or

four weeks.

Buckingham Transportation, Inc.

•

bonds due

reimburse, in part
Ahe treasury of the
company for property additions and.
Improvements and to meet, in
part, the cost of the con¬




addi¬

experi¬
mentation; for initial contracts; and purchase of addi¬
tional
companies.
Underwriter—None.
Offering—Ex¬

by Pioneer.

Th^p 1121 qr1/^^0'^0'00^ °J first mortgage
Proceeds—To be used to

Thursday, May 28, 1959

issuable

Insurance Co.

ffrtce

■Sco6 £«rpurchase.
u if*
lease

on

—

•

stock

Co.

shares

construction

($1 per snare). Proceeds—
Jor development of oil properties. Underwriter—First
Investment Planning
Co., Washington, D. C.
Trinity Small Business Investment Co.
April

Title

reserve

writer—G. Everett Parks & Co., Inc., New York.
ing—Expected in about two months.

•

.

man

•

Jc Tang Industries,

...

Wade Drug
Corp., Shreveport, La.
April 28 filed 157,250 shares of class B
to be sold

4 it was reported that the company is seekin
early ICC approval for the issuance of 250,000 shares o
common stock. UnderwTiter—Cruttenden, Podes

May
common

stock

privately to retail druggists through James D.
Wade, Jr., company's principal officer and stockholder,
who will receive a commission of
$1.50 per share. Price

class A
ta

&

Co., Chicago, 111.

end of June.

Offering—Expected towards the

Volume 189

Number

5850

.

.

.

The Commercial and Financial Chronicle

Central & Southwest Corp.
was announced that the company in view of

closs, Parker & Redpath, Washington, D. C. and New

May 19 it

»

Feb. 10 it
the

•

Long Island Lighting Co. (6/24)
May 15 it was announced company plans to issue and sell
$25,000,000 of first mortgage bonds. Proceeds—To repay
bank

loans

and

for

construction.

new

Underwriter—

competitive bidding. Probable bid¬
& Co. Inc.; Blyth & Co., Inc. and
The First Boston Corp. (jointly); W. C.
Langley & Co.;
and Smith, Barney & Co. (jointly).
Bids—Expected to
be received

on

19, James Comerford, President, announced that
plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
Be Co. aiid Paine, Webber, Jackson & Curtis (jointly).
•

(7/6-10)
May 15 it was announced that this company plans an
offering of $4,506,500 of convertible debentures, together
undetermined

an

number

of

shares

of

Co., New York..

v"

ceived

-

;

■

March 4 it was announced stockholders will on April 28
vote on increasing the authorized preferred stock to

1,000,COO shares from 472,229 shares, and the

common

Pro¬
Underwriter —

For

major expansion program.
White, Weld & Co., New York.
•

First National

Life

Insurance

Co.

was
company plans to issue
$18,000,000 of 30-year first mortgage bonds. Pro¬

ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. Probable bidders

on

Sept. 10.

,

Feb. 10 it

was

determined.

and Lehman Brothers
(jointly); Merrill Lynch.
Pierce, Fenner & Smith, Inc.; Stone & Webster Securities*
Corp.; The First Boston Corp. and Smith, Barney & Co.
(jointly).
Reheis

;

plating the sale of $8,000,000 of first mortgage bonds.
Underwriters—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Go. Inc.; White,
Weld & Co.; Kidder, Peabody & Co.; Salomon Bros. &
Hutzler and Merrill Lynch, Pierce, Fenner & Smith Tnc.
(jointly!; Lehman Brothers and Blair & Co.. Inc., (joint¬
ly. 'Bids—Expected to be received on July 14.

v

March 31 it

Seaboard Air

To

repay

to

on

Leeds
ditional

Travelwear

York.

f

Union Electric Co.

markup

not

was

to touch off any broad
demand
for
recently
marketed
issues

which had slipped two

three

Points

to

initial

their

prices upon being cut loose from
syndicate support.

McAfee, President, stated that the
plans to sell about $30,000,000 of additional

stock

later

this

out quickly
deal proved

aggard.
The

spanking

ttended

the

olidated

which

success

marketing of
Co.
of

Edison

ConNew

million of 30-year first
bonds could prove a
and, sorely needed tonic for

had
been made just a mite too thin. The
consensus appeared to be that on
a 4.75%
yield basis it would have
been a deal that would have at¬
the

return

tracted

on

this

offering

much

in

buyers

greater

fork's $75

numbers.

ucrtgage

investment
market appeared to be hardening

eal

he investment situation

in gen¬

eral.
months, it seems, since the
inderwriting fraternity has come
It is

with a real winner, that is, a
carrying terms which in¬
vestors were willing to speak up
or and place their orders.

But

brought out to yield 5%, also were
reported moving well to investors.

Thirty-Year

ieal

When
interest

bankers
rate

Brothers; White, Weld & Co.,
(jointly); Merrill Lynch, Pierce, Fen¬
Smith, Inc. Offering—Expected toward the end

and Shields & Co.

&

ner

Airways, Inc.

of the second

or

third quarter of 1959.

* Wayne Manufacturing Co., Los Angeles, Calif.

Co.'s

Edison

Jones

&

Schwabacher &

million of hew

$75

bonds and fixed

bid of 100.3291

a

meant

this

that

the

though it

issues,

Templeton, Los Angeles,
Co., San Francisco, Calif.

noted that

was

most of the "trade-outs"

big metro¬
politan utility was being forced
to pay the highest price since the

were

for

cash.

20s for new money.

in

Experienced
confident that

bond
bit

men

were

previous financing by the
company
was
$59.6 million
of
convertible debentures in January

turned

The

with

a

Edison

the

loose

more

issue

in recent

said

be

other bid was for 101.212

The only
or

less

that

than

12

cents

a

5 Ya%

Consolidated

$100

per

piece under the top figure.
Stirs
As

an

solidated

offshoot

Edison

of

Con¬

it

ap¬

dealer

their

and

groups.

$50

million

debentures

of

Public

of new
Service

Electric & Gas Co., along with the

at

competitive
shares

of

bidding

common

of

stock

by Virginia Electric & Power Co.
and Bausch

&

Lomb Optical also

peared, according to traders, that has $8,750,000 debentures due out
there was a bit more willingness that day.

This

was

tive offerings of other

On

issue.

reflected in more ac¬

outstanding

&

Wednesday, Florida Power

Light opens bids for $25 mil¬

lion

Electric Co. is scheduled to

open

"rights"

of
640,306
Thursday
rounds out the week with Spigel
Inc., slated to offer $15,417,500 of
a

of

bonds

apd

offering

of

common.

icbnvertible

debentures,

first

to

shareholders.

Peier

Philadelphia

Morgan & Co.

Underwrites Stock
For Lumber

Corporation)

Seaboard Plywood and Lumber

Corporation

is

shares of its
per

Tuesday will bring* the biggest
undertaking

750,000

the

offering

underwriters

sale

Activity

Some

and

weeks.

a

the bidding
banking groups at least were real¬
istic in the bidding and pricing.
must

Calif.;

shares

strength
might well
arouse greater interest in a num¬
ber of offerings that have been

to trade into the new

Peak

named

for

year

Probable bidders: Lehman

May be Lehman Brothers and Hornblower &

the

West Penn Power Co.'s new SV&s

lp




V

all-in-all

com¬
com¬

through rights to common
stockholders. Proceeds—For expansion program. Under¬
writer—May be determined by competitive bidding.

4% coupon rate. A year
Busy Week Ahead
Meanwhile, it was reported that ago, the last debt financing, with¬
out a conversion feature, took the
Although the Monday calendar
demand was on the slow side for
National Steel Corp.'s $80 million form of $50 million of first and is again a largely "when, as, and
4s which
brought a if" classification, that is it con¬
The corporate new issue market of 4%% bonds carrying a price refunding
ixperienced something akin to a tag of 99 for an indicated yield price equal to a net interest cost sists of a host of small, specula¬
of 3.885% and a reoffering yield tive issues which could or could
ootball player reversing his field of 4.687%.
not
reach
of 3.85%.
market,
next week
his week when a large offering
Judging by comment in the
a
bit of business for
narketed by the competitive bid- market
So in the current instance it promises
area, it looked as though
route moved
vhile a negotiated

■

chum,

—

enough

ling

■■■■•'•

::

;(Mo.)

mon

Weeks, both of New York.

slight premium from the offering

from

-7

May 26 it was reported that this company plans a sec¬
ondary offering of about 90,000 shares of common stock.
Proceeds—To selling stockholders. Underwriters—Mit-

bonds

the

.7

•.;

Feb. 23, J. W.

^

price,

,

pany

May 26 to authorize the company to offer up to $50,-

Consolidated Edi¬
negotiated
a

while

new

:

writers

Corp.

announced that company plans some ad¬
common stock financing. Underwriter—Auchin-

True,

.

000,000 of convertible debentures.
Stockholders would
have pre-emptive rights to subscribe for these securi¬
ties. Proceeds—For purchase of equipment, etc. Under¬

was

son's

,

*Taft Broadcasting Co., Cincinnati, Ohio \
May 26 it was reported that the company plans a regis¬
tered secondary offering of about 500,000 shares of comman stock. ; Underwriter—Harriman Ripley & Co., New

May 4 it was announced that the stockholders would vote

June.

May 19 it

.7

.

(jointly); The First Boston Corp., Blyth 8i
Co., Inc. and Kuhn, Loeb & Co. (jointly); mute, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith Inc. Bids—Expected to be re¬
ceived on July 22.

Co.; Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly). Offering—Expected in May or

1, 1960
Halsey, Stuart & Co. Inc.;

Probable bidders:

Speedry Chemical Products Co. Inc.
May 15 it was announced that the company plans "an
offering of 208,666 shares of common stock. Underwriter
—S. D. Fuller & Co., New York.
Offering—Expected
during the second or third week in July.

bank loans and for construction

American World

1974.

•

Riter & Co.

Pan

(6/24)

Salomon Bros. & Hutzler.

•

City Power & Light Co.
reported that the company plans to issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
was

Inc.; Salomon Bros. & Hutzler.

by the company on June 24 for
the purchase from it of $6,000,000 of
15-year equipment
trust certificates maturing annually from June

program. Underwriter-To be determined by competi¬
tive bidding. Probable bidders: Lehman Brothers and

Kansas

Dec. 29 it

(6/4)

Bids will be received

reported that the company also is con¬
about 714,000 additional shares oi
common stock, for subscription by common stockholders
on the basis of one new share for each 20 shares held.
—

Ry.

Halsey, Stuart &

Co.

offering

Proceeds

Line

are to be received by the
company on June 4 for
the purchase from it of about
$4,470,000 of equipment
trtiSt certificates.
Probable bidders:

^Southern Pacific Co.

(7/22)

Berkeley Heights,
Corp., New York.

—

Bids

was

sidering

announced that this company plans some

equity financing. Office

N. J. Underwriter—Aetna Securities

(Minn.)

(Minn.)

was

additional

to repay bank loans and for construction pro¬
Underwriter—To be determined by competitive
bidding: Blyth & Co., Inc. and The First Boston Corp.
(jointly); Lehman Brothers and Riter & Co. (jointly)*,
Merrill Lynch, Pierce, Fenner & Smith, Inc.; Harriman
Ripley & Co. Inc., and Eastman Dillon, Union Securities
& Co. (jointly); Kuhn, Loeb & Co.; Smith, Barney & Co.

Northern States Power Co.

Co., Inc. ' ■"">

May 19 it

be used

(7/14)

~

Inc.

gram.

announced that the company is contem¬

.

•

Puget Sound Power & Light Co.
May 15, Frank McLaughlin, President, announced com¬
pany plans to issue and sell first mortgage bonds later
in the year. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co,

was reported that the company has revised
its financing plans, and is considering the offering and
sale of $10,000,000 of new preferred stock. Proceeds—To

.

in the company's annual report

raising of

Proceeds—To meetconstruction require¬

ments for 1959.

March 31 it

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peabody & Co. and Shields
Co. (jointly); Lehman Broth¬
ers; The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 14. Bids—Expected to
Jersey Central Power & Light Co.

Power Co.

stated

the

$13,250,000 from outside
This new money will come partially from shortobligations but principally from permanent financ¬
ing, the amount and type of which has not as yet been

;.

Northern States

was

plans

term

plans issue and sale of $20,000,000 25-year first
mortgage bonds. Proceeds —For capital expenditures.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Glore, Forgan & Co.; Blyth & Co. Inc.
Bids—Tentatively planned to be received on June 23.
Registration—Expected at end of May.

&

it

sources.

pany

(9/10)
announced that the

be received

June 25.

.Service Co. of- New Hampshire

a

that

Cincinnati, Ohio.

Georgia Power Co.
Dec. 10 it

on

about

April 22 it

Northern Illinois Gas Co. (6/23) 1
I
March 25, Marvin Chandler, President, announced com¬

Co., Inc., New York.
RegistrationExpected on June 4th or 5th.
Offering — Expected
early in July.

and sell

was reported that company plans an
offering
$4(1,000,000 of convertible securities. Under¬
writers—May be Lehman Brothers and Glore, Forgan &
Co., both of New York.

of

Dec. 1 it

May 12 it was reported that the company plans early
registration of about 75,000 shares of common stock (par
$4). Proceeds—To increase capital and surplus. Under¬
writer—Blair

May 26 it

this company

North American Equitable Life Assurance Co.
was announced that the
company plans an of¬
fering of 950,000 shares of capital stock. Price — $10 per
share. Proceeds—To increase capital and surplus. -Un¬
derwriter—John M. Tait & Associates,

stock to 25,300,000 shares from 20,300,000 shares.
—

that

^ Montecatini *
'•;
v;.- V,,
■
■•' 'V'?> / ■ "'A.v
May 26 it was reported that this company plans to offer
about $10,000,000 of debentures in this
country. Under¬
writers—Lazard Freres & Co., Lehman Brothers and
Kuhn, Loeb & Co., all of New York.

El Paso Natural Gas Co.

ceeds

announced

common

stock, to be offered in units. Underwriter—S. D. Fuller
&

was

plans to
issue and sell" $5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program. Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬

Gilbert Properties

With

★ Philip Morris, Inc.

Mississippi Power COi (6/25)
Dec. 10 it

was

of

Aug. 4.

June 24.

May

company

sale

—

To be determined by
ders: Halsey, Stuart

Consolidated Natural Gas Co.

Pennsylvania Electric Co.

(8/4)
announced that the company is planning
$15,000,000 of first mortgage bonds.
Un¬
derwriter
To bb determined by competitive bidding
Probable bidders: Halsey, Stuart & Co. Inc.; Equitably
Securities Corp.; Kidder, Peabody & Co.; Eastman Dillon
Union Securities & Co., Merrill
Lnych, Pierce, Fenner
& Smith Inc. and White, Weld & Co.
(jointly); The Firsl
Boston Corp.; Harriman Ripley & Co. Inc. and
Blyth &
Co., Inc. (jointly). Bids—Expected to be received on

York.

generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common
stock.
Offering—Expected sometime this Fall. Under¬
writers—To be determined by competitive bidding;
Probable bidders: Blyth & Co., Inc. and Harriman Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Fretfes & Co. (jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith, Inc.

45

(2449)

offering

150,000

stock at $3

common

share, through the underwrit¬

ing firm of Peter Morgan & Co.,
New York

City.

,

Proceeds from the offering

be used to expand present
lines

and

will

product

to acquire new related

lines.
The corporation and its subsidi¬

aries

are

engaged

in

buying,

warehousing and distributing plywood,

manufactured

hardwood
and

millwtork,

flooring, interior trim,

lumber specialties.

46

The Commercial and Financial Chronicle

(2450)

.

.

Thursday, May 28. 195£

.

■17
L:

Industrial

period

New Behrens Office
HUTCHINSON, Minn.
office

branch

a

Mutual

Second

115

at

Avenue, Southeast, under the
management of Arthur R. Behrens.

New Yorkers led the

Colket & Co., 70
York City, mem¬

A.

as

purchasers of mutual funds last

According to the National Association of Investment Com¬
One
of
the
more
intriguing
panies, New York residents paid out $251.5 million for funds in
aspects1, of these "Lucky Seven",
1958, compared to $218 million the previous year. California, first- starting points is that all of them
in 1957 with purchases of $222.5 million, registered a gain to
occurred during periods of pros¬
$248 million last year to rank second. Still in third place was
perity and at times when the
Pennsylvania with an aggregate $110.1 million. The smallest vol¬
near-term outlook was rather un¬
ume in any state was the $1 million in Nevada.
Total purchases
certain., What's more, the net gain
throughout the nation amounted to more than $1.6 billion.
v • figures, \ impressive" * as' they are,
tf
fy
«
"
"... '

Stock Ex¬

on

ship.

r

Leavitt, Spooner Admits
SYRACUSE, N. Y.—On May 21
Lee K. Simon will become a part¬
ner

in

Leavitt,

..

do

Sell Mutual Funds"

"Sound Ways to

Spooner & Com¬

A MUTUAL

INVESTMENT
FUND

c(#

history.

:

v

Fund issued its 100th
.

..

.

.

quarterly report in silver ink to

FREE INFORMATION

sary.

YOUR INVESTMENT DEALER OR

ended

NATIONAL SECURITIES &

per

fund

the

observe

FOLDER ANO PROSPECTUS TO

s

creased

share to

$7.6r per share, or to

$7.86 per share including a eapital gains distribution paid in De
The fund eliminated from

ethbiishtd 1930

by Heritage Securities,
associate company of Na¬

Insurance, has reported
assets gained by $5 milneariy $12.7 million during
|jscaj year ended last April
Over the 23-year period from

tionwide

30.

its

through 1956, Mutual Income
hac| been abje
aCqUjre oniy $4
m|jiion jn assets. The reason why
2933

Hough, can be found in the re¬
portfolio over the period a organization of the fund's distri¬
large number of electric utility bution and management structure
and natural gas stocks (Delaware
started in February, 1957.
Since
Power
& Light, Public Service that
time, fund shares have been
Co. of Colorado, Columbia Gas, sold
through Nationwide Insur¬
Southern Natural Gas, and United ance
agents who have completed
Gas Corp.) and food issues (Corn
training and obtained securities
Products, General Mills and Pet iiceilseS- it is believed to be the
Milk). Among the largest addi- £irsj. mutual fund to be marketed
its

tions

FOUNDED 1921

a

til

amounting

however,

The

of portfolio.

to
banking

is close with 8.35%.

Commonwealth Income Fund in

quarterly bulletin, the C.I.F.
Shareholder, points out that sav¬
ings are accruing to the fund
through the use of microfilm in
storing records. A single roll of
microfilm, notes C.I.F., stores as
many records as four filing cab-

from

net

payable
stock

to

of

record June 5, 1959.

inet

bulletin

The

drawers.

then

much by great

pieces of good for¬
that seldom happen, as by
advantages that occur every

tune

little

day."

EITHER PROSPECTUS

v

'

Wellington Equity Fund, fledg¬
ling offspring of Wellington Com¬

FREE ON REQUEST

Ltd.,
manager
of
giant
Wellington Fund, is living up to
its name.
Issuing its first semi¬
annual report, the new fund dis¬

pany,

| Incorporated
Investors
ESTABLISHED

I

A mutual fund

investing in

a

from

for

,

possible long-term growth of

f-r

\
I
J Incorporated j
I

Income Fund

J

A mutual fund investing in a
list of securities for current
income.

!-—
A prospectus on each

investment dealer.

The Parker Corporation
.

|

■

I
I

j

fund is available from

200. Berkeley Street

Boston, Mass.




80%

C.0mni°"
96%

to

...

,

of

resources.

there have been sev¬
eral basic changes in the fund's
holdings. Out the window went a
number of auto parts, chemical,
oil and paper stocks.
Of 11 new
common stocks purchased, six can

Moreover,

capital and income.

your

four-month

the

in

period ended April 30 it had in...

list of securities selected

J
I

that

closed

1925

be

classed

sile

issues:

as

electronics

or

Varian
were

Cutter Laboratories,

Fansteel
Drug and

Corp.,
Rexall

Public
these

Service.

others

Draper

Metallurgical,
Southwestern

"The

additions,"

purpose

of

Walter

said

L.

President, "was to

Morgan,
vide

The

the

fund

with

a

broader

participation in companies
especially attractive growth
pects.'*
*

*
.

Mutual

!

Income

pro¬

with
pros¬

"

Foundation,

serve

York

A

dur¬

■ft.WfflL

ing' the 1959-

PP§

■

1960

fiscal

M

year,

accord¬

t||

mm

ing to an an¬
nouncement

giSSfe:
:

j.]*

m

by >11 e nr y
Grady Wells,
Jr., Andrews &

■s/W&n
m

ftihk

■'

the

of
n

at i

n

mmmk
FM

g

-

M i 111 k

has

!

A..

Eugene

m

m

D. H.

Callaway, Jr.

ki,

e s

Treasurer of

.

of New York Authority

nominated for Vice-President
S.

President

Allen, Assistant ViceChemical

el'

Corn

Ex¬

for Secretary; and
Chap delaine of J. J

change- Bank,
Richard

Kenny Co., for Treasurer. John C
Fitterer of Wertheim &

Co.,

and

the ; Duncan C. Gray, Vice-Presiden
just as of B. J; Van Ingen & Co., Inc.

at

total
designated

nominated

were

of

ernors

level, a retroactive discount will
be
applied to obtain additional

the

to

terms.

year

serve

-

Gov¬

as

three]

for

Forum

77;:-;

-

,

shares for the investor.
v

If the investor fails to reach the
within thirteen

indicated

amount

Mackay Opens Branch

SHILLINGTON,- Pa. — Macka:|
and Company has opened a brand

47%

...

The investor may amend a

Let¬

Neuberger, Berman Partne

ter of Intent to increase the desig¬

Neuberger

nated range within the stipulated
thirteen month period, but the re¬

&

Berman,

121

Broadway, New York City] memj
bers of the New York-Stock Ex !

troactive

purchase price on the in¬
apply only change, on June 1 will admij
with respect to purchases made' Stanley A. Marks and Edward H|
after the filing of this amendment. Potter to partnership.
amounts shall

creased

agency

the

of

share¬

Investors

National

of

tained.

a

Street
are

back

diyidends and making peri¬

odic

purchases

of

additional

shares. A recent tabulation showed

that 10,393 shareholders owning
30%
of
the
fund's
8,378,543
shares were making use of the

Their

plan.

average

238.5 shares valued at

*
Missiles

Fund,

-

*

Jets

Inc.

holding
$3,105.

is

reports

its

net

assets

increased

from $3,064,752 to $4,during the four months
ended April
30.
Net assets per.
share grew from $11.07 to $13.43
over the same period.
.

*

Two funds

\

*

.

'

...

' !'/..■

of

Scudder, Stevens
reported sharp
gains in assets during the year
ended May 15.
Scudder, Stevens
&

have

Clark

&

Clark

net

Fund,

Inc.

increased

its

from
$67,361,807
or
$33.59 a share to 882,724,756 or
$40.77 a share. Meanwhile, Scudassets

Stevens

der,
Stock

gain
593
352

Fund,
in

or

Clark

&

Inc.

Common

registered

a

assets from $17,684,$21.69 a share
to $29,645,net

$29.89

or

a

❖

share.
!'!

For

the

time is

a

products of heavy industry. Con¬
sequently, its traffic and earnings
were depressed last year by the
drop in shipments of steel, auto¬
mobiles-and coal. However, the
in

business

industries

has*

activity

in

brought

long-term gains, any¬
good time to buy common

with

back,

a

publication

Distributors, dealers
Custodian

Funds.

To

amounted

come

to

$2.52

only

its

road

diesels to handle

-•

with

would

be

a

new

reflected

the

improvement in
revenues for the

Despite

has

sufficienj

substantial

inf

ones

and

in these

thi|

costs)

the

liabilities

rent

ued

$29,658,0(Jo|

$21,827,000

through

make

May

carload-

with

results

for

the

this should
first

five

months well above those of a year

from

-

-

-Nickel

Plate

serves

the

-

territory extending
Buffalo west along the

South

shore

of

I ake

working capital

was

$25,297,000

Erie

to

as

on

that dab

compared witH

a year earlier. Capital
expenditures,
sinking .fund rel
quirements and debt, maturities
are
estimated
at $14,400,000

the year.

.

highly

industrialized

were

Net

ment

Almanac, Cleveland r and Lorain, Ohio, to
"you invested $1,000 each year for- Fort Wayne, Indiana and Chicago.
10 years on every June 30 in the The leased and controlled Wheel¬
leading stocks of the Dow-Jones ing & Faxe Erie serves tne coal
the

the

and

mer

operating income was $6,109,595
against $3,541,853. This upward
trend is believed to have contin¬

encouraging to fund managers in
this high-priced market. .* *
says

efficiently operate^

being fully dieselized. -Stean]
power wasv eliminated last sumf

recession of la,si
year,
Nickel - Plate finances re]
business, gross
main
comfortable.
On February
first
four
months
of
this
year
were
$51,019,396 against $44,661,-. 28, cash and, cash equivalent!
amounted to $36,105,000 and curt
685 in the 1958 months and net
Reflecting

ago.

"Suppose,"

ad]

Cleve]

-

now

cars

a

'

share.

-argument, • the
Almanac has dug up -some interr
esting statistics that should be
up

|> '

$4,494,752 as compared 'are

earlier in the year and

Almanac,

Franklin

The road is

'

only $1,944,685

ings running at a higher rate than,

Franklin

♦

Huron.

and

land

expected to continue to ]bl
in the com¬ ;und,er~ control.. Equipment maintel
parable period a year ago. If there nance has been increased in recenl
is
not an extended steel strike, months due to the bad car ordejf
earnings of Nickel Plate should situation, but this is hot expected
continue well ahead of a year ago !to be a, major problem,as far aj
and be close to the $3.50 a share earnings are concerned. The carl
earned in 1957. Last year net in¬ rier anticipates a number of old
was

come

Franklin

in

districts in

dition to the Lake Porta of

an

stocks. That is the counsel of the
of

districts of eastern Oliio and steel
and manufacturing

upturn in the road's crease in traffic. Consequential
the road should hold operating
earning's position.
ex]
April net income expanded to penses, and particularly transport
$1,390,435 against only $471,302 in! tation costs, down even "with. :l
the like 1958 month: For the first further
gajn ..in traffic. Maintei
four months of this year net in¬ 'nance costs also have been cut ai
about

:!!

systematic investor in¬

in

terested

York, Chicago & St. Louis

York, Chicago & St. Louis
(Nickel Plate) basicly handles the

these

Automation

&

New
New

recovery

*

446,613

Electronic

Associates.

Mu¬

company.

mis¬

Associates,
Litton Industries, Northrop Corp.,
Raytheon, Siemens & Halske and

the

The

*

„

-

New

to

Nomi

offering price
but, when
the

reaches

growth stock fund of the
Group of Mutual
now using the fund's
accumulation
plan for plowing
Corp..

man

President

I

*

than

More

quotes Benjamin Franklin: "HuFelicity is produced not so

WALTER L. MORGAN

I

*

holders

the

through
insurance

an

Broad

its

income,

30, 1959

£orce 0f

Funds,

share

investment

b 1 e,

group

quarterly dividend
June

exciugiVely

(N.

9.44%

consecutive

Ilea

National City

Y.). Affiliated's electrie utility holdings are still sizBank

118

First

were

of New York and Hanover

Bank

made

Michi¬

of

of

months, but his acquisitions total
at
300
West
Lancaste
$15,000 01* more, a retroactive ad¬ office
Avenue
under
the
direction
^ie fun(j has lately come to life, justment will be made on all pur¬
chases at the volume actually at-' Joseph J. Gallen.
observes
President
George
S.

cember.
120 Broadway, N«w York 5, N. Y.

prevailing
heretofore

2oth anniver-

the
six
months
April 30,
Affiliated
inits net assets from $6.94

During

of

Leonard

be

First

President

nicipal Forum

was

amount

jion

for

Committee.

Institutional Funds Let¬
Begin¬
ning immediately, Hare's Ltd. will
pay commissions to dealers at the
rate applicable to the total amount
of the intended purchase desig¬
nated by the investor. -

Inc.,
that

nated

ter of Intent are handled.

will

of

Corporation, has been nomi¬

gan

The Port

Purchases

Callaway, Jr., SenioJ

Wells, 7 Chair¬

Policy

modification

significant

H.

under the

.

an

David

Vice-President

been made in the way purchases

.

Report

burnt SelMA

Affiliated

A

i.

.*

.

Oil Commissions

managed

The Fluids

RESEARCH CORPORATION

Municipal Forum

Receives Slate

man

and recent industry devcoplments.
seminar in which teams of 10 regis¬
particular sales problem on an actual

planning

estate

They are highlighted by a
trants develop solutions to a
case

include dividends.

Sell

Ways to

ing -plans,

even

Hare's New

,>

Mutual Funds." The first seminar in the
new series was held May 26 and 27 at the Statler Hilton Hotel in
Boston.
The second will be June 2 and 3 at the Statler Hilton
Hotel in Ne w York. Future seminars are expected to be held this
Fall in such cities as Washington, Atlanta, Cleveland, Chicago,
Los Angeles and San Francisco.
During a two-year tour of 16 cities two years ago. the sessions
attracted more than 2,000 representatives from about 1,000 dealer
offices.
The urograms offer talks on such subjects as profit-shar¬
"Sound

not

7

reactivated its training program on

Vance. Sanders & Co. has

of Boston, members of the
New York Stock Exchange.
pany,

WRITE FOR

N. Y.

$3,187.

year.

June 1 will admit John
Monahan to limited partner¬

change,

nation

to

From 1907 to
1917, such a program would have
yielded a net gain of $5,215. Here
are some other periods: 1917-1927,
a
net gain of $7,305; 1927-1937, a
net gain of $4,138;
1937-1947, a
net gain of $2,712, and 1947-1958,
a net gain of
$9,22^....

Market for Fund Shares

New York Big

Pine Street, New

bers of the New York

ciated

By ROBERT R. RICH

Penington, Colket Admit
Penington,

in-*

vested amount would have appre¬

E. W.
opened

~

Behrens and Company has

the

Averages." Taking
1897-1907, the total

flow

fo[

Depreciation and retire]
will give a casll

charges
of

some

$7,900,000

and

S4,-[

has been raised for thil
sale of equipment obligations.
In view of the improvement ii|
900,000

earnings -and the road's financk
condition

the

dividend

rate

continued.

50

cent

probably

quarterly
will

h{

Volume

Number 5850

189

.

.

The Commercial and Financial Chronicle

.

will not be transferable separately

Billups Western
Issues Offered by
Johnson, Lane Group

until

after

'

.

apd 1,000,000 shares of common
l.
'

-y

Billups

stock of Billups Western Petrole-

rated

vum| Co.

-

,

1959.

ing

The

group

is also pffer-

to certain, employees, of

^selected

by its

management,

f (kg

hi

The securities

are

an

be-

of

•

$10

one

debenture

shares-

;

\J7~V

and

.

..

March

on

conclusion

$5,000,000

ferred

of

Each :iinit consists

195fi

stock

and

shares.

out of

total

a

of 2,520,000

issue

\ v•'

7~'>;/ 7-

.--v -,

On

]•,

'!

433,4

;

'•a

The Board of Directors has declared a
dividend of 25 cents per share on the

10,020,000 shares of the Company's cap¬
ital stock outstanding and entitled to re¬
ceive dividends, payable June 15, 1059,

1050, a quarterly dividend of
share-on the Preferred Stock and

27,

May

cxi(s per

dividend

of

40

seats

share on the Com¬
mon
Stock,
were
declared,
payable
July
1,
1959.
to stockholders of record at
the close of..
business June 12,
1959.
*;
F
j. NEUMANN. Secretary

I
'

per

to stockholders of record at

business

May

DIVIDEND NOTICE

Chicago^—At

a

ROBERTSHAW

meeting of the

Board of Directors of

Amphenol-

v'

-

of

today

a

thirty-five (35^)

per

share

,•

A

to

was

the stockholders of record

the

close

1959.

of

business

June

»*•'

n.

if

i

per

at

par

on

the

value 5

Secretary

business

of

$1,371/2 Pcr share on
Stock, payable July 1, 1959,

;

■;iiv
€
a.

of business June 12,
V."

"
'rill

7/
•i.ai

I

•

/

7. 7 7/

1959.

to

Corporation

stockholders of rg£#rd at the close
•
/.T
• .ty#
'

7"> I.7V.7-"'

dividend, for the second quarter, of the
on

the outstanding Common Stock,

year

regular quarterly
1959, of 55£ pcr

a

stock

at

of

abS? *

record

the close

of




Dividend Notice
The Board of Directors

this

date declared2

a

dividend of thirty-seven

STOCK

Common

payable June 22, 1959 to stock¬
1959. The transfer books will

and one-half cents

(37%|)

on

the Cbnamon

Stock of the

Corpoi^tion,

per

share

payable July 1, 1959, to
stockholders of record at

not be closed.

the

JAMES A. WITT
Secretary

close

business

of

June 10,1959.

on

;:V

;

B. M. Byrd
A dividend
share

has

of five cents (5c) per

today been

declared

May 27,1959

of

Corporation, payable on, June

common

SERBOHRD
F

30, 1959, to stockholders of record
at

the close of business on

:--;*77-7J1:T?7;';: ;•>)

1959.

;

■

,

I

of busi'

A

N

C

C

N

O

M

P

A

CAS

UNITED

COMMON STOCK DIVIDEND

"7: :'77;7

THE

SERVING

r

n

June 5,

97th Consecutive Qudrterly Payment

The BoRrd of Directors of

A. R. BERGEN

i

Seaboard Finance^ Company
declared a regular quarterly

Secretary.

June 12, 1959.

dividend, of 25 cents

The stock transfer books will

a

share

on

Common Stock, payable July 10,
'1959, to stockholders of record
>

not

be closed.

International Salt

June 18,1959.

•

PREFERRED STOCK DIVIDENDS

TREASUKP.R

The

company

May 27, 1959

Directors

regular

a

dividend

of

ONE DOLLAR

share has been declared on

the

on

also

the

declared

dividends

quarterly

$1.18%

DIVIDEND NO. 180
A

of
Sinking

$4.75

Fund Preferred Stock,

$1.25

on

the $5.00 Sinking Fund Preferred

Stock, $1.25

on

the $5.00 Con¬

capital stock of this Company,

vertible Preferred Stock,. Series

payable July 1, 1959, to stock¬

A

holders of record at the close of
business

on

June 15, 1959. The

stock transfer books of the Com¬
pany

and B,

all payable July 10,
1959, to stockholders of record
June 18, 1959.
EDWARD I. JOHNSON

April 23, 1959

will not be closed.
HERVEY

Secretary

I Southern California
Edison

J. OSBORN

Company

Exec. Vice Pres. & Sec'y.
DIVIDENDS

The Board of Directors has
authorized the
the

payment^ of
following quarterly divi¬

dends:

ORIGINAL PREFERRED STOCK
Dividend No. 200
65 cent* per shore;

—391 *t Dividend—

SUNDSTRAND

93rd Consecutive Year of

CORPORATION

Quatterty Cash Dividends

CUMULATIVE PREFERRED STOCK,

4.32%. SERIES
Dividend No. 49
27 conts per share.

A

quarterly

dividend of

seventy-five cents (75tf) per
share will be

paid

on

DIVIDEND NOTICE

June

13, 1959, to stockholders of

The above dividends

The Board of Directors de¬

record June 1, 1959.

clared

a

regular quarterly
per share on

dividen d of 2

CIIAMP CARRY

the

'

President

common

able

June

Tune 10,

stock,

20,

shareholders

pay¬

1959,

of

to

■

\

Rockford, Illinois
Ma" 19

holders

of

1959

record

pay¬

stock¬

June

Checks will be mailed

5.

from

the Company?s office in Los
Angeles, Jurte 30.
p. c.

Vice President-Secretary

TRAILM0BMT

are

able June 30, 1959, to

record

1959.

G.J. LANDSTROM

ST

>

Secretary

.

on

stock

outstanding

such

WILLIAM FISHER

HOSTESS
CAKE

LOUISIANA^

(HREVEPDRT,

has

quarterly dividend of 37J4c per

May 20, 1959

May 25, 1959.
ness

10,

98

this

payable July 1, 1959, to

holders

NO.

the

:
,y

day

DIVIDEND

77/77-'.

.-,>*<«,

7;#*

..

The Board of Directors has declared this

share

a

7; ,..7,
.'.'.7."
Common Dividend No. 57

r

CORPORATION

■

quarterly dividend
the outstanding $5.50 dividend Preferred
day

UNITED GAS
1

of

June

holders of record at the close of business

June 10,

'

•;

1959

1959.

MR .CONTROLS

|

Con¬

stockholders

to

May 26, 1959

Solvents

Secretary-Treasurer

Wis.

per cent

20,

June

commercial

(83

of record

payable

Stock,

-

The Board of Directors has declared this

stockholders

payable

$25.00

Preferred

vertible

,

COMPANY
-4#

to

oettte

fifty

191 1959"

$0.34375

Cumulative

16,

Secretary.

Preferred Dividend Ne. 82

■ v,

...

quarterly

,

share has been de¬

clared

,

Fred G. Pace,

..

regular

dividend of

A regular

f

1959,

of

Corporation,

Richmond, Va.

PREFERRED STOCK

quarterly divideud

share has been declared on the

BAKING

the

capital* stock

CONTROLS COMPANY

record at the close of

.

the

FULTON

'

held

the close of

VANDERSTUCKEN, JR.,

15.

of

has' declared- a

dividend
on

L. G. REGNER.

June 1, 1959.

E. F.

.v

Directors

share'

May 29. 1959.

Stock

■■rv

June

of

quarterly

per

value)'

par

B0RG *

COMMON

CONTINENTAL

(50c)

Paul E. Shuoads

declared, payable June 30, 1959,

X. Y.

Board

regular

Senior Vice President

Borg Electronics Corporation
■

:V,T| DlVIDEND NOTICES

GEORGE W» HELME COMPANY
Rockefeller Fia.za. New-York St,

DIVIDEND
The

Milwaukee,

pre¬

TEXAS GULF SULPHUR COMPANY
V

on

a

aMPHENOT
★

a

May 19, 1959, de¬
quarterly dividend of
severity-five cents per share on
the capital stock, which will be
payable June 11,1959, to stock¬
holders of record May 28, 1959,
clared

17,

1,050,000 shares

stock,

common

authorized

.two

~~

meeting

DIVIDEND NOTICES

partici¬

6%

of

fBRtctsASTittnoii};

Dividend
The Board of Directors at

this

of

stoc^;"whieli;

01VIOCND NOTICES!

118fh Consecutive

\

i ncorpo-

w;as

cumulative "convertible.

of

^^terbst^-bn'^they^e^entures from
1,

the

At

CORPORATION

pating debentures, 980,000 .shares

price of $22.20, plus accrued

'May

Delaware

in

bonds,

oHgredito' theirpublicunits

a

>

its y.outstanding capi¬
talization will consist of: $1,500,000 in bank loans, $3,500,000 first
mortgage * and ? collateral
trust

(additional . 50,000 shares at $6.10
share.

Western

DIVIDEND NOTICES

BRIGGS & STRATTON

financing,

the

iprcdecessor Billups yorganization,
1

DIVIDEND NOTICES

Spiegel, Inc. Notes
Placed Privately

July 31, 1959.
Net proceeds of the financing
will be used by Billups Western
and its subsidiaries in the acqui¬
g Spiegel, Inc., through Wertheim
sition of substantially all the busi¬
ness and'assets of Billups Petrole¬
& Co., has placed $50,000,000 of
um
Co., a partnership of Ham¬ 5Vz% notes due July 1, 1979 pri¬
i An underwriting group headed
by- The
Johnson,
Lane,
Space mond, La., and its affiliated cor¬
vately with a group of institu¬
Corp. on May 26 offered to the. porations which operate gasoline
tional investors, it was announced
stations
in
Mississippi,
Texaspublic $5,000,000 of 6% partici¬
\
Louisiana, Alabama, Missouri and on May 28.
pating debentures, due May 1,1984 Tennessee.

ii

47

(2451)

hale,

Treasurer

The Commercial and Financial Chronicle

.

.

Thursday, May 28, 1959

.

(2452)

48

BUSINESS BUZZ

Washington...
A
jT± f lit

Behind-the-Scene Interpretation*
(ran the Nation'. Capital

der

WASHINGTON, D. C. — In
Lake City, Paul Pehrson,
owner of two hardware and ap¬

a

year...

..

.

serve

all

countries

selling

•

of

recreational

more

and

completed

and

people

and

bought

one

■'

v.;
a

-

urge

time

particu¬

detailed
plan to provide more timber,
water, recreation, wildlife and
result

natural

renewable

other

valuable

creasingly

been presented by

Agriculture,
The

forests has
Secretary of

Taft Benson.

Ezra

of Agricul¬

Department

is

Service

Forest

ture's

re¬

nation's' in¬

the

from

sources

now

readying field task forces which
will
begin
on
the
ground
etudies July 1. The purpose is
to get a complete and factual
inventory of recreational poten¬
tial of the national forests. The
facts

gained from the
great
survey
will be the basis of
programs
for
the
activation
needed by the National Outdoor
Recreation

are

Review

Resources

Commission established

by law

In 1958.

have

and timber
at

now

turning
tional

for

shorter

trend

recreation.

working

indications

all

are

and more to na¬

more

forests

With

out

continue.

will

hours,
this

that

are

In

than 1957.

more

Recreational Crisis Developing

that

the

Washington
con-'

present

gestion in the national forests,
and in
the state,
county and
local

forests

recreational

and

is not just something that
temporary, but a mild crisis
has developed already.

areas,

is

The growing population, ris¬
ing family incomes, more time
and

leisure

that

means

the

present demands for recreation
are

mild

indeed,

as

situation will be 10
from

to what the
or

20 years

By the year 2000, the
situation would be horrible un¬

less

now.

some

The

.that
.

planning is done

Forest

is

include

to

be

Service

tion of recreation
<

possibilities
acres

now.

review

undertaken

inventory

and

will

evalua¬

resources

in

and

the 181,000,000
of national forests.
Un¬




sub¬

harvests

all-time

an

high.

Nevertheless, much remains
.

to

during

25

be

done

the

next

years or so.

Government Timber Sales

M

>

national

the

from

forests

will

treble, primarily from the sale
standing timber. He is hope¬
ful that by the year 2000 timber
of

from

sales
owned

000

a

forest

lands

by the Federal Govern¬

will

ment

the

amount

with

year

to

an

$350,000,saw-

timber.

billion

billion

board

feet

the

1960s.

during

Forest

authoritative

to

11

The

Association's

publication,

"American

Forests,"

a

construction

plete

struction

of

roads

cess

trails

recon¬

90,000 miles of
and

ac¬

miles

8,000

earliest

the

at

and

com¬

of

possible

time.

Eventually, the plan calls
for 70,000 miles of forest high¬
ways,
542,000 miles of access
roads, and the trail network
will be reduced to 80,000 miles.
There is at present 24,400 miles
of forest highways, 149,000 miles
of forest development roads and

Recreation

through

extended warm edi¬
congratulations to Secre¬

torial

Marion

looking

ahead

outdoor

for

to

for his

blueprint.

tary

Benson

Said

the "American Forests":

The programs proposed,

,

in

short, would put the national
forest system in A-l, apple pie
order

of

will

more

demands

during

cites four
primary factors for the ever ris¬
ing demands for recreation.
These

are

population, buying

leisure and the mobility

It

estimated

is

will

there

be

people

many

States

as

was

that

about

in

by 2000
twice as

United

the

in 1950.

It is

rea¬

sonable to expect that a nation¬

population of 240,000,000 in
and 310,000,000 in 2000.
j

al

1980

Clawson

Mr.
that

people

twice

as

in 2000

tion

is

to

will

money

in 1950.

areas,

mission

on

perhaps

much

as

goes

have

to spend

This fact will
use

of recrea¬

especially when ad¬
free

at

or

nominal

rates.

the

be

intensive

watersheds

—

world.

increased

Water

through

management

welcome

news

of
to

outdoor

points

out

number

week

in

to

around 40 in 1950. Certainly

the

future prospect is

for still short¬
er
working days and weeks.
People will travel farther to get
to the recreation areas of their
choice

network

the

over,

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views, j

NYSE Extends Quote

Avenue, New York
(paper).

Program

on

of

has

more

recreation.

time
He

that
the
average
working hours per
been

dropping from

A

Panel

International

in

Economic

Discussion-

Finance Corpora¬

tion,
1818 H Street, N. W.,
Washington 25, D. C. (paper).
special Report—Gov¬
Development Bank for

San Juan: A
ernment

Rico, San Juan,'Puerto
(paper). .'
;
'•?"

Puerto

.

in
1958—Compendium—U. S. De¬
partment of Commerce, Bureau
of the Census—Superintendent
of Documents,
U. S. Govern¬
ment Printing Office, Washing¬
Government

State

ton 25, D.

Finances

C. (paper), 40c.

Strategy for Investors
Clarke

—

WNYG

—

John D

Semagraph Security

Studies, 1024 North Boulevard
Oak Park, 111., $2.00.
daily program of New York
Stock
Exchange
closing
prices United States Investment in Aus¬
broadcast over New York City's
tralian Manufacturing Industry
municipal radio station, WNYC,
—directory showing extent of
has
been
moved
to an earlier
U. S. investment in Australian
time
and
has
been lengthened,
manufacturing industry, listin
starting May 25.
U. S. firms known to have es¬
tablished factories in Australia
The program will be broadcast
or interest in Australian manu¬
at
3:30 p.m.,
immediately after
The

facturing firms—Industries

trading

ceases on

the floor of the

Exchange, and will continue until
3:50 p.m. The stock

price program,

popular public service

a

feature

Di¬

vision, Department of Trade
Melbourne, Australia. r«;
United
1958

States

in

Richard

—

World AffaJ
P.
Stebbins
-

j

of WNYC for the past

three

years,

Council^
58

previously

ran

from 3:40

p.m.

to

3:55 p.m.

Final prices and net changes for
the day

will be given for approxi¬

New York Stock
—about 20%

listed

on

WNYC

Exchange issues

East

on
68th

21, N. Y., $6.
U.

Foreign Relatioi
Street, New Yor

'/

Information

S.

Review of
Dec.

>

Agency,

11

Operations: July

31, 1958—U. S. Informati

Agency,

D.

Washington,

t

C

(paper).

of the total number

the Big Board.

is at 830

on

the dial.

western towns and cities
served by national forest water
and
for
most
irrigated farm
lands and hydroelectric devel¬
opments.
.

Morrison—Fund for

Enterprise

Growth,

Rico

1,800

".
In carrying out the pre¬
viously
announced
Operation
Outdoors, the new proposals
will see both parts of this pro¬
gram in full swing.
Ten thou¬
sand new campground and pic¬
nic sites containing 102,000 fam¬
ily units are proposed. Improve¬
ment of 7,000 miles of the 81,000
miles of fishing streams and 56,000 acres of lakes by stabilizing
banks, planting streamside cov¬
er,
and
constructing
channel
improvements are also in the
plans."

of

highways.

mately 300 common and preferred
will have

People
for

1850

say

and

people everywhere
would regard them as another
flow

the

recreation

greatly stimulate
.

Future, Inc.,
Clawson,
in

the next four decades,

power,

hours

70

around

Stimulants

Resources of the

few

weeks ago

Liberal

Advancement of Education,

the

Private

The blueprint calls for

However, the Cabinet officer's

seven

the

of

Beardsley Ruml and

H.

Donald

22, N. Y.

of the people.

immediate goal would be to in¬
crease the recent record cut of

—

477 Madison

annual cut

billion board feet of

of 21

Problems

tural

mind, I'll

pen—and now, if you don't
it to close out the account."

112,200 miles of trails.

Secretary Benson foresees the
day when the present income

wonder

in

Authorities
declare

20

1958

alone 68,500,000 recreation visits
were
made% to
the
national

forests, 12%

reduced

been

American

American

the

points
people

Benson

Secretary
that

past

marked pace, forest

a

stantially,

a

the

Tree planting has taken

fires

and big cities, new problems are

in

forests

years.

who live in apartment buildings,

a

the

place at

larly the millions of Americans

arising. As

The Forest Service has done
favorable job of management

of

to spend

outdoors,

of the

Because

use

College Trustee: A
Financial and Struc¬

a

on

College

high¬

new

,1.55

the future.

of

area

(paper).
to

Report
©E06JU! ALLEN, J.

being built will bring the
average family hours closer to
their favorite camping and out¬

'

more

N. Y.
Memo

ways

doors

A

by

manu¬

lack of storage

new

a

year.

of

—

the Economic Prob¬
lems Department—National As¬
sociation
of
Manufacturers, 2
East 48th Street, New York 17,
study

"Thanks for the
network

Business Climate

Favorable

recreational
goods and supplies looks most
favorable for the future.
The

25th
s o n

Institute, 750 ,T h i r d.
New York 17, N, Y.
(paper), $1.

making

panies

are

good for a season, and reputed¬
ly rainproof and fireproof, are
on
the market. At the end of
the season the tent can be

next

the

—

Avenue,

of

that

concur

Survey

survey—E d i

Electric

be

autumn

the

by

^10.00;

Power

Semi-annual

Some of the experts in Wash¬

ington

going to the forests, and along
the streams for recreation and
vacation. This year paper tents,

space,

to

$25.00;

Corp.,

S25.00.

Electric

facturing picture for those com¬

more

tossed away for

V

areas.

scheduled

is

Co.,

Motors

1960.

.

More

work

wild

and

wilderness

ol

Field

manship" for selling such things
as
picnic supplies, barbecuing
supplies,
camping
equipment,
and
other things for outdoor
living.

General
Chrysler
Corp., $25.00: All Other Dealers,

Motor

swimming, skiing, hiking, horse¬
back riding, and the enjoyment

equipment than in any
in history. They do not
"turkey sandwich show¬

need

N.

involve

picnicking, fishing and hunting,
mountain climbing, boating and

these

—

East 22nd

camping,

including

(paper).

B. Klein & Co., 27
Street, New York 10,
Y.—in four volumes: Ford

Dealers

man¬

pinpointing
areas
study. All kinds
recreation will be

considered,

all the

outdoors

time

Washington, D. C.

more

outdoor

Governors

Federal Reserve System,

the

Directory of American Automobile

recreation

will

phase

and

uses,

needing

stores
across
days, are

hardware

other
the

nearly

and

City,

1896-1955—Board ;of
of

finding out what lands are suit¬
able
for
various
recreational

Salt

in

stores

hardware

3L.ake

All Bank Statistics: United States,

Soupnoodle Savings Bank

tim¬

as

intensified

the

first

The

are

trim¬

the

mings," said Mr. Pehrson. "Noth¬
ing can sell hardware like a
4*ood turkey sandwich."
t
The

such

WITH EACH NEW ACCOUNT

agement of national forests. * *

have

and

in

needs

.

sandwiches I

"The

tender

FREE!

use management,
integrated with

consideration is given

by

key

BALL-POINT PEN

ber, water, wildlife, and grazing.
The review will assure that full

in

serving delicious tur¬
sandwiches several times

sales

is

the other resources

increased

and

customers

new

bringing

is

stores

pliance

njultiple

recreation

Salt

a

A UU/

Attention Brokers and Dealers;

TRADING MARKETS
Botany Industries
Indian Head Mills

Official Films

,

.

Southeastern Pub. Serv.

si®*1

Our New York

Orl Marks
FOREIGN

&

P.o. Inc.

SECURITIES SPECIALISTS

20 BROAD STREET

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NEW YORK 5. N. Y...

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10 Post Office

Square, Boston 9, Mass.

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^

telephone number is

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%

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»S 69