Full text of Commercial and Financial Chronicle : November 13, 1958, Vol. 188, No. 5794

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ESTABLISHED 1S39

U 195g

Volume 188*

Number

New York 7, N.

5794

EDITORIAL

Price 50 Cents

Y., Thursday, November 13, 1958

Quarferly '"v^tmentcomPanysurvey
Funds Buy Aggressively

post-election resolutions of

one

By MELCHIOR PALYI

Midst Market-Business Rise

the most influential members of the Democratic

Chicago, Illinois

By A. WILFRED MAY

party, Senator Johnson of Texas, is "to face up
the

high interest rates which

necessary

growth of

our

Timely insight

the pitfalls and the facts regarding
trade with U.S.S.R. is Dr. Palyi's response to those who
greet every trade offer with wild enthusiasm. The inter¬

slowing the

are

economy." Unfortunately

the Senator does not make it clear
he

precisely what

by the phrase, "to face up." If he means
merely to accept the common dogma among all
too many politicans that current interest rates

unduly burdening business and that the neces¬
and sufficient remedy is to be found in
tinkering with the credit system of the nation,
there is reason enough to be disheartened with
the outlook. If he means to imply that rates of
interest higher than the purely artificial rates
created by the New Deal are to be expected, and
that the Democratic party plans to go on from
there, the situation is quite a different one.

Analysis of investment companies' portfolio operations
during third quarter reveals general turn from defensive
issues toward cyclical beneficiaries of general business

nationally known economist criticizes those who uncri¬
tically accept Krushchev's extrapolations of output; com¬
pares our generous but wasteful and inefficient foreign
aid to the Soviet's; and advocates a "universal boycott"

means

are

sary

These

complaints about high interest rates are
always disturbing because they always seem to
imply advocacy of remedies which in the end
can hardly fail to spell disaster. They also always
seem to
reveal utter lack of understanding—if
not sheer misunderstanding—of what it is that
fixes interest rates in a normally operating pri¬
vate economy.
If a would-be home owner finds
that he must pay a higher rate of interest than
he would prefer to pay, it is always so easy to
convince him or his representatives in Washing¬
ton that the fault is to be found with the banking
system or with Federal Reserve policy—or per¬

haps with the Federal Government itself. Much
the same is to be said of a situation in which
interest rates add

automobile

appreciably to the cost of buy¬
other durable goods on
Continued on page 30

the West's

answer

Soviet dumping.

form

senior securities substantially reduced by both
stepped-up purchases and appreciation of equities. In¬
dustry groups particularly favored include airlines,
motors, coal, drugs, electricals and electronics, papers,
rails, steels and textiles. Royal Dutch best-bought issue.
Selling mixed with buying in farm equipments, banks,
beverages, containers and glass, finance companies,
foods, aluminums and coppers, natural gas, domestic
oils, utilities, tires, and tobacco.

how exacted.
Bolshevist

The

Empire

one-third

controls

responsible in 1957 for a pitiful 3%—
3V2%, smuggling included—
of world trade; and that was an alltime high of Soviet foreign business
in money terms (leaving aside the;
intra-Soviet exchange)- In physical

DEALERS

[Tables

appearing

23 and 24 show Fund's

pages

comparative investment positions; total common stock
and other securities transactions; and individual com¬
mon

stock transactions by

industry groups.]

maybe

volume,

West's

the

trade with

For the first time in

that

below

West

shows

trade

decline.

that,

definite

with

trade

the

Only 19 investment companies sold on balance against
Dr. Melchior

Paly!

ers

Continued
F.

Mikesell
the

afforded

buyers, with 4 stand-offs; contrasted with 27 net sell¬
in the June quarter and 32 during the March period

considerably lower market levels. Particularly heavy
buying was, of course, engaged in by the open-end
stock
funds,
of which 29 bought on balance, and

Naturally, the bargaining power of a state monopoly is
superior to that of the individual Western trader. Time

page

only 4 sold.
Interestingly, a major exception - was
provided by the closed-end companies, 7 of which were

N. Behrman, Financing Free World
Bloc, Princeton University, 1958.'

and

Sino-Soviet

Continued on page

dealers and investors in corporate

with the SEC and Poten¬

complete picture of issues now registered

tial undertakings in our "Securities in

business.

high.

rigid barter combinations*
—manipulated in their own favor.

With

and

often than not, had

period ending Sept. 30, while the Dow-Jones Average
advancing by 54 points, a full 11%, to a new all-time

*Cf.

market

sively increased their common stock holdings during the

Soviet bloc is hamstrung in 240-odd

Trade

stock

was

bilateral clearing agreements, a sys¬
tem

the

signs

managements,

maintained judicious defensiveness throughout the great
bull market's immediately preceding quarters, they deci-

the

with

1929

course

Whereas fund

In the current year, East-

same area.

the

sued
r

Iron Curtain countries still is about

50%

quite a long interval investment
portfolio policy during the third quarter pur¬

company

SECURITIES NOW IN REGISTRATION—Underwriters,
are

the

world's population, with gold reserves, natural resources,
and industrial capacity second only
to the United States.
But it was

or some

securities

Concludes the

another, excluding forced labor and know-

Registration" Section, starting on page

38.

State, Municipal

and

U. S. Government,
State and

Municipal

STATE

AND

MUNICIPAL

Lester, Ryons & Co.
623 So. Hope

Securities
telephone:

Members New York

BONDS

HAnover 2-3700

Members Pacific Coast

MONTHLY

LETTER

BANK
BOND

Stock Exchange
Exchange

del Mar,

Beach,
Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa Monica

DEPARTMENT

BOND

Encino, Glendale, Hollywood, Long

CORN EXCHANGE
THE FIRST NATIONAL CITY IANK

DEPARTMENT

30 BROAD

Bonds and Notes

Offices in Claremont, Corona

view

burnham

Housing Agency

Stock Exchange

Associate Member American

THE

Public

Street, Los Angeles 17,
California

CHEMICAL

Burnham and

ST.,N.Y.

MCMB6RS NEW

15 BROAD
CABLE:

OF NEW YORK

Company

VORK AND AMERICAN

Inquiries Invited on Southern
California Securities

6TOCK EXCHANGES

STREET, NEW YORK 5, N. Y.
• Dl 4-1400
TELETYPE NY 1-22*2

Bond Dept.

Teletype: NY 1-708

New York

the

Chase Manhattan
BANK

Correspondent—Pershing & Co.

COBUBNHAM

The Toronto-Dominion Bank
Underwriter

Distributor

•

Net

Dealer

Dealers,

Banks

|mm<-

flmm

lMI•
"

'
'-y

and

Brokers

B. C. Forest Products

Members

\yV.Yy£/>sW<mm
'
'/

New York Stock Exchange
American

Stock

CANADIAN

STREET

<£otUAu>€4t COMPANY

DIRECT WIRES

Victoria

TO MONTREAL AND TORONTO

Goodbody

Co.

MEMBERS NEW YORK STOCK EXCHANGE
115 BROADWAY

PALLAS

BRIDGEPORT

•

PERTH AMBOY

for California's

buy these rights at the

current

market.

and

Expanding

Toronto, Montreal,

Economy

Halifax

Teletype NY 1-2270

Exchange

NEW YORK 4, N.
FIRST

Ottawa, Winnipeg, Calgary, Vancouver,

DEPARTMENT

/''«w
25 BROAD

Municipal Bonds.

Expiring November 28, 1958)

We offer

Direct private wires to

lii

15, 1959)

Dominion Foundries and Steel Limited
(Rights

1832

ESTABLISHED

(Rights Expiring January

Maintained

Markets

Active

T. L.Watson &Co.
r■HMI

sive

technically progressive but con¬
tains limited capacity for world market competition—
despite their garnering of $25 billion in foreign aid in
one

Portfolio proportion of cash items and defen¬

recovery.

U.S.S.R. system may be

ing

Copy

Competitive Coexistence
See It

One of the

•

NEW YORK

1 NORTH LA SALLE ST.

CHICAGO

Domouox Securities
Corporation
Associate Member at American Stock Etch.

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

MUNICIPAL BOND
DEPARTMENT

Hmtlt of Ammcn
NATIONAL

S3 ASSOCIATION

300 Montgomery St., San

Francisco, Calif.

The Commercial and Financial Chronicle

Thursday, November 13, 1958

(1978)

The

Banks, Brokers, Dealers only

For

participate and give their

reasons

for favoring

(The articles contained in this forum

they to be regarded,

are

Quarterly

New York Stoek Exchange

Allied Laboratories
On long term appreciation poAllied
Laboratories
is
tential,
about as interesting a stock as I
know,
This company is a sman

request

factor

the

c a

f i

Corporation

talled

Shields & Co., New. York City.

Exchange

Lester, Ryons & Co.,-Los An¬
geles, Calif. (Page 2)
;

r:- *

" "

-—

—

provides

outlet

for what--

excep¬

come

this

^tenTS

Itg

riafoil

detail

allows effective if not blanket na-

ALD introof margarine

1952

BOSTON

Private

some

vaccines,

flu

SAN FRANCISCO

Wires

Asiatic

and

CHICAGO

•

sales

1956

Principal Cities

equalled $22.6
only

way

pressure

serum

dised

and

levels. The theopotential for hygrowth has been even more spec¬
tacular.
pertensive patients is huge, one
Adjusted
net in
1952
was
88c
a
share and a record recent authoritative estimate plac.

cleared in 1957.
Not ing the number of those suffer T
the increase in earnings ing with high blood pressure in
for
this period
consistent — the the United States at 20 million,
compounded annual rate.averages Moreover,' Emdee is- comparable
almost 40%.
Two factors made in taste and texture to butter and
$4.59

was

only

RIGHTS

SCRIP

Since 1917

Members

Stock

120

Exchange

BROADWAY, NEW YORK S

TEL.

2-7815

REctor

•"*

the

quisition of Campana Sales, there
are
now only
787,250 ALD common shares outstanding.
The im-

York Stock Exchange

American

One is

possible.

record

company's small capitalization,
Following the issuance of 65,000
shares earlier this year in the ac-

ffcpONNEH&PO.
New

was

this

growth record was also
possible by the Salk vaccine.
Any important new product
will naturally have a terrific im-

pressive

made

pact

small

company

AT~

Baisett Furniture Industrie!

Actually, prior to the adve t of
the Salk vaccine, the greater percentage of company
sales and

STRADER and COMPANY, Inc.
LYNCHBURG, VA.

New

number

use

Wire

canae

J*0™ vetennanes,

mainly anti hob cholera sera and
vaccines.
ALD had also developed

Commonwealth Natural Gas

—S-2527—

pharmaceutical find of the
Moreover, nothing prevents
ALD from developing important
new drugs of its own.
If it ever
develops one like Diuril,. earnings,
-would skyrocket.
Rounding, out
the bright outlook for this company is tRe snowballing rate
of
new scientific discoveries, worldwide increases in population and
living standards, and clearly evident investment' interest in
the"

cents

pound for

margarine;

differential

price

that

his

nounced

when

Salk

Dr.

^em

will

able

TWX LY 77

turers

York

chal enge

available

extremely

V(?rlf,?dKby Sle cxp?tn-

consum-

years' experience, ALD

vaccine
.

which

quarter of this
a

important;
a

city. More
has not yet re-;

ALD

v^tpnt

it*

nmpp^

change, one of
the

and,:

dev^biS coSfoon'
attracted

waters.

one

second

cents^ a in the
share

quarter.

contribution
earnings

With

initial

Campana

the

third

Sales,
quarter

rebounded sharply to 97 cents

the most useful tools

in
as

securing

thud

accurate

new customers
+

sentea

smart

place

and

ary

Salk

into many

advertisement in

first time

large number of vetenns

earnings

are

pharmaceutical

concerns,

But its small capitalization can induce
we

THE COMMERCIAL AND

FINANCIAL

CHRONICLE

25 Park Place. New Yerk

leverage

will

have

both
to

quarters to

Campana Sales

proprietary

for

come
is

concern

and

ways

wait

few

in.

than

INC.
Street, New York 5, N. T.

37 Wall

Underwriters—Distributorf
Dealers

■

Investment Securities

Canadian and Domestic

Opportunities Unlimited

French firm and

for

our

Digest, and

Monthly Stock

our

other reports

that give you a

pretty clear
picture of the Japanese
economy as a

whole.

Ltd.

each

cept

This

not

ofrer

orders for any

solicitation fOr

particular securities

all

expenses

Kyons

Telephone: BOwling Green 9-0157; V

re¬

pays

turn
j. l..

dol¬

61 Broadway, New York 6, N.

ex¬

claims

and the cost of
.

adjusting claims. The growth of
Argen- F^A thus depends upon (17 its

ALD

1957

re-

twenty,
of

lar and

distributes the veterinary product
^lso

IN JAPAN
Write

For

premium

oratories, Ltd., manufactures andline \

ceives

cents

worth was purchased outright in

joined

phar-:"s"c^ss in managing the business
pf ^Farmers Insurance Exchange-

tine firm in establishing

a
maceutical manufacturing concern
jn Buenos Aires
pany

to'

access

American

giving the

the

market.

.com-.

huge;. SoU:th,

Polio

an(^ (2) Jts. ability; to, control the

:PP®rati.n6 costs so as'to produce
protfit., front its fixed

vaccme4a

saies

manage-

made

were

that

manufacturing remarkably since 1928 from direct
country as---a premiums written of $176,000 in

very

million.

Its

pansion abroad will obviously be

in the years ahead.
With the blue-chip pharmaceu-

stepped
tical

selling

companies

better

best

selling product, by far, is Ayds, a
candy product' whieh inhibits the

that year to $96,974,000 in 1957.
Assets have risen to $103,661,000
and surplus $38,789,000. While
year
,

year

than

?oTimef curren! earning^ have ^^wn
begins to look like

bargain

only 11 times its earnings po*
even though this potential

figures

•

ald

tential

small
whose prod-

uct list numbers 10 separate items
with combined sales total of little
more

services

ciation

Shuttle.

start in the European market. Ex-

products, ALD

other

Burns Bros. & Denton

writers Asso¬

foreign countries
-

for the

®rgument rnig"t be pre- opening
it can.
^winS to t"e operation
of the Salk vaccine

somewhat less seasonal than most

your

Investment Bankers

Broadway,M.Y. 6 COrttandf 7-S8I9

the Uhder-

;carried

als0

vacdne

au¬

surance.

"the

den'ied

t b

The

that

tne

Brokers

lit

be accepted

can

importance

it's

Ltd.

Tokyo, Japan

throughput Eu-^mentfee.,
rope and the company has had a
(1) Farmers Insurance Exchange
guide, the company
representative acting as an^ im- writes insurance on, passenger auted earning power porter in Italy. It is thinking of tomobiles.. Its business has grown

quaiter

^e!non:5

Inc.

Yamaichi Securities Com

tomobile in¬

However, Emdee's poten-

principal

writers of

^fghf^tmoTfamufar

penalized

compared with 82 cents

first

Advertising

These

the

year and

earnings heavily

re-

standards.

off

written

were

called* FUA),

(frequently

ran

meet

not

potency

did

Affiliate

Farmers Underwriters Associa¬
tion

January 1957 and makes the company's line of ethical medicines
into some production snags and
for
sale
in
Canada.
(An older
had to destroy several batches of
Canadian subsidiary, Allied Labthree

of New York,

Farmers Underwriters Association
,

in;one large

as soon as

was

fill

the

undertake

of making the vaccine
possible. That

YamaicHi
Securities Company

which was organized in 1928, is
jj. jg currentiy being test marketed
manager of thesura nee Ex¬
Farmers. In-

an-

manufac

write

through conventional channels,

significant discovery

pharmaceutical

information

Partner, Lester, Ryons & Co.,
Los Angeles, Calif.

un-

ajs0 be sojj and

can

advertised directlv to the

j late in 1954, it was one of a handful

City

for human

vaccines

don

current

is a, lot different from
ALD's other products. It is presently being merchandised directly
to doctors through the regular de- pharmaceutical' stocks. ?
tail force and sold in
drugstores., . ALD might be considered a
Price mark-ups are accordingly -npullia«0-n hnt at a nriee in the
higher-than normal. Here in New
40> ':+ ran hardlv be conYork a one-pound can of Emdee
4Us it can naraLy pe con
sells for $1.00 as compared with Sldered to° Wlld a speculation,
69 cents a pound for butter and
JOSEPH L. RYONS

product

The

For

.Gall

the

.^LI? PrePP®d f°r the difficult

earnings

Life Insurance Co. of Va.

Private

successfully,

year.

doubtedly prove to be determent
biological production of the polio to voJume sa,
at least at first
vaccine
in
veterinary medicines.
But since Emdee is not a, preserip-

American Furniture

LD 39

other margarines. Still, success is
not assured. In the first place, this

ALD.

Trading Interest In

offices

CK S
-

has been in Merck's and Diuril is

level in blood

retical

branch

our

JAPANE SE

product like
Emdee could prove as important
jn ALD's earnings results as Diuril

market

blood

tional

connection between the cho-

lesterol

Rizzuti

Walter

$13.5 million.
Earnings

Specialists in

Direct wires

numbers

force

million and in

Teletype NY 1-40

WOrth 4-2300

year,

type

new

La.-Birmingham, Ala,
Mobile, Ala.

une T:sucii;v.*Tfo
One, such

laboratories.

duced

polio

NY 1-1557 *

Now Orleans,

beginning to crawl'
jnt0 foreign markets.; Its. products
out ol its einicai xe-rosieP Jists
ethical re-; rogtep jists
over
over
It

theses.

coverage.
It is feeling itsintopotentially profitable
product,
trade
marked
Emdee, proprietary markets. It. has earnwhich helps the body synthesize -fogs
to
-warrant V substantially
the cholesterol contained in fats higher prices
in the immediate;
and fatty acids.
Medical opinion future- And don't-overlook that
is fairly well agreed that there is small capitalization—if merchan-

Salk

HAnover 2-0700

products

proprietary
rietary

new

Earlier

volume

tional

Kxektnt§it

Members American Stoek

qualities. Campana not only gives babe. It has demonstrated its abilALD an entry into the sometimes
compete successfully on the
lucrative proprietary field,but
Inmost difficult*pharmaceutical synalso

kf —www™ «• ww«
Members New York Stock Mxchmnge

19 Rector St., New York 8, N. Y.

kit and also has better absorbent

believed to be close at hand.

Member

120 Broadway, New York

PHILADELPHIA

Bought—Sold—Quoted

';(Pfl2G 2)

product, a cold_remedy^hasal- -pyer 300 professional salesmen,^
ready been handed over to Cam- which incidentally is;% unusually ;
pana and other new products aie
jarge for so small a company and

$31.2
swelled

were

claims is superior to
in that it does away
with the need for an application

to¬

million and

Established 1920

Stock

Research. Department,

zuti,

company

might

1 d—

sales

1957

■

other tampons

ever

pharmaceuti-

New York Hanseatic

American

nor

Research Department
Members:

United States

Associate

be.

Riz-

appetite.
A n o t h e r interesting/t V
•
Campana product is Pursettes, a Farmers Underwriters Association
catamenial
tampon
which - the *. —Joseph - L.- Ryons;" Partner,

Shields & Co., New York City

and Trust Companies of the

Laboratories—Walter

Comparison of Leading Banks

Available

intended

are not

■

WALTER RIZZUTI

Louisiana Securities

particular security.

offer to sell the securities discussed.)

as an

Alabama &

Participants and

Their Selections

Allied

Bank Stocks
Our 106th Consecutive

This Week's
Forum

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

Specialists for over
30 years

Security I Like Best

surplus

on surplus

some ups and downs

Over-the-Counter

Quotation Services
for 44 Years

as a result of changing loss problems, total assets have increased
every

year

except. 1957,

direct

has not been proved conclusively.
This is not to imply that ALD be*

Premmms written have increased

class with the

every year but two, 1943 and 1954

longs in the
Mercks

and

Products.

the

same

the

American

Home

It might still be a babe

keenly

maceutical

•

competitive

woods

—

(the

latter

were

drastically reduced for

when

premium

rates
corn-

phar-

but- such

Natwnal Quotation Bureau
,

CHICAGO
*

Continued

page

Established 191$

46 Front Street

NeiiYork4,«.Y.
SAN FRANDISOO'

Volume

188

Number

5794

The Commercial and Financial Chronicle

(1979)

i N j) E X

'-f

Articles and Mews

Oar Gravest Domestic Danger
.

several

Louis, Missouri

banker and spokesman for U. S. business, Mr.

he terms is

measures

porize with^inflation. It
implacable enemy - of our

talk at Hart¬
ford,
Conn.,
I remarked
that,
"Even in the midst of a recession,
dur greatest long-term danger in
^
tnis country is
a

—Ira U.

feel

inflation." ; ^:v;

like to

would

months

Fire and

that

t h

There

■

»:

tiOn

were

during

unleashed

which

further

time

make

for

inflation

continue

•-

'y,

the sway of

inflation,

value

employment, sales,

wages and

profits.

Yes—but what price prosperity?
What price prosperity, if at the
same

time, both prosperity itself

and-The very foundations of our
market system of free
enterprise

being undermined by a relent¬
less
and
malignant disease—in¬
are

flation?
~

them

are

strong words. I intend

be.

Some

will

the
greatly
say it is
say

problem of inflation is
exaggerated. Others will
-

the

lesser

Still

of several

others

other

evils.

will

say,
it is in¬
evitable, why not relax and enjoy

It?:
I frankly say to those who hold
such
opinions,
"You
are
dead

wrong!"
we

*An
the

Furthermore, I

cannot
address

4Sth,

Bankers

incomes

dare

that

say

by Mr. McDonnell before
convention. Mortgage
of
America,
Chi¬
Nov. 4, 1958.

annual

•*

which

lag

an
ever-rising ^general
level. Inflation is simply
outright robbery from those least
able to protect themselves. V
i t;

ethical

_____*

—

off

grounds

this

But

Inflation

alone, we
or shrug

-cover

all

the
*

J";

—

J.F.Reilly&Co.,Inc.

Members Salt Lake City Stock Exch.

1 Exchange P|^ Jersey Gtj
77

Dlgby 4-4U70

way

smooth. functioning

the

system,

but it also is the path
controls, wage controls
and more economic authority in
the hands of jgovernment. In short,
inflation
is
the
alley-way en¬

and

Insurance

in Meeting $12 Billion Federal

trance to socialism.

socialism
bush

—

T-i"

Salt Lake

City

Indications
;

Pacific Uranium

Investment

American Marietta

Recommendations

Chock Full Oltuts*

*Prospectus

/-'V
19

Current

Business Activity-'—

'.'r ■■■■"'

Funds

!____

Our Reporter on

HA 2-9000

Our

Reporter's Report--

•

Direct Wires

San Francisco

;

inc.

Exchange Place, H. Y.

Teletype NY M825 & 1-4844

f
^

—

•

Mackie,

Governments-.

request

Singer, Bean

Observations—A. Wilfred May
■

»•

;

News About Banks and Bankers—

Mutual

Ampex Corp,

From Washington Ahead of the News—Carlisle Bargeron

EloxCorp.

Uover

Stocks

Drive?"

Philadelphia

Railroad Securities

.; "

Los Angoles

Chicago

OaUas

in every

Security

Offerings,

J«i

Securities Salesman's Corner
The Market

Best

Uranium, Inc.

—

and You—By Wallace

The Security I Like

;—-—

Streete—

Westwater

!—

The State of Trade and Industry. j_!

behind

see

every

activity underon

page

Washington and Youi__,

—

: 11
i

;_!

Alscoj Inc.
-

ffSee

Cover

Page article
Rise." :

Market-Business

"Funds
i

Buy

Aggressively

j j
i

Electronic
*

Midst

fSee Mr. May's article on Cover Page.

Altamil G>rp.

•

Corp,

one

Continued

Western Gold &
Prospective

not

lurking

—

Securities Now in Registration

Specialty
i

For many years we

Published

FINANCIAL
,

Reg. 17. S. Patent Office

25 Park

Members

25 BROAD

New

York

Stock

Albany

Nashvilla

Schenectady

Glens Fall*
'•

Worcester

Reentered

DANA

Place,

25,

second-class matter Febru¬

1942,

at,

the

post

office

;

New

'.77,

COMPANY, Publishers

Subscription

New York ?, N: Y.

Subscriptiona

REefcor 2-9570 to 9576

Possessions,

gEIBERT, EdUer Sc Publisher
DANA

gEIBERT,'

President

.Thursday, Noareatber 13, 1958

r "
.

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

in.

Rates

United

Territories

States,

and

WM V. FRANKEL

Members

TELETYPE NY 1-5
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ST., NEW YORK 4, N. Y.

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...

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Exchange

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Ejoininion
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•

fluctuations

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for

latest products

tremendous

of that

in the applica¬
tion of scientific knowledge — in
all fields—which got its true start
well within the life-spans of many
here tonight.
The elders among
■

surge

-j

•An address by Mr. Millsop at the 35th
Annual

Conference of the Rational Man¬

agement Association. Los
Oct. 24, 1958. "

Angeles, Calif.,

nlaced
piacea

in
in

for

still

mentioned

that

has
acquired a new dimension. That
is literally true. With the electronic
telescope, Man can look into space
farther than
of

light

ever

into
see

before—millions

With the electronic

years.

microscope he
posite

space

can

direction

i
_

hsd

held

been

new

functions?

were

in response

of the business

to new/needs
or^3niz3tion;<Other
__.-x.j--i..

functions

new

where
wneic

response

were

created tin

aim

tcsr^tioii*thsn

environment

still

It will continue, Man-

51!:ln11

line

particular

company

business Vto

This, of

referred

course,

is what

increasingly as the
development
of
professional'
management. It is a change responsive to the needs oLour time,
is

Modern

high
cause

management

degree

requires

of specialization be^

of the

and

wonderful

alchemists'

acquired

There
time

are

can

accuracy
years.

now

new
ways

measured

back

over

the

than

Time also
dimension.

which

with

fair

thousands of

And in the opposite direc¬
are devices that meas¬

tion, there
and

control

ana

the

rate

and' substantial

quality
in

everv

skiu

every

+v-

nnp

grow

grass

all

before

„rpw

* *

where
fields

n°W 111 America can't do thosejob
exlstence and m the to
come
alone—but it can lead the way.
>a

management'can't

•

American
.

are written

e a
I

have, time for

observations

aspects.
0f

rise

con®T^ ?*ncl suosianiiai ( rise in
productivity
the following of
fhp
Rjhiirai
im.inrtirm
fn >rfffike
I
?i i
injunction, to.maKe

iob

let'<

First,

this sponsibility to get the job done,

only

That is the challenge

to Ameri-

certain basic

can

management in this year 1958,

people.

remember

the

first

Management

can

never

year

of the

Space Age.

better than the average of
individuals
in
it.
Second,

the

Management" must accept the im-

provement of
do-it-yourself

management

job.

Outside

' *"

:D6||lSCllllldllll
' "m -"

help

manage-

ment must-not fail to meet. ^

any

." '

■

tO ASSISl
K

LflAh fll

js available from universities and

other:

sources

but

the

inspiration,

initiative and direction must be
supplied-^by. management, itself,
As I: see-it, here areNsome of the
most-important lines-along which

the

Announcement is made t that
Jack H. Doutschmann will be assistant to Gerald M. Loeb, E.f.
Hutton & Company, 61 Broadway,
New York City, members of the

number, variety and we must move:-•
New York Stock Exchange.^ Mr.
management jobs.
More- Careful Selection
Future
Deutschmann succeeds August B.
time, good manage-Reehholtz who has retired. V

nme

to^

can

dream

hope to eliminate it—it is ri

constant

complexity of
At

look in the op¬
almost xlown

changing lead to gold.
has

the
skill

snd

—

the heart of matter

ancient

can
few

concepts and methods grounded on
the fundamentals that apply to all
business.

can

^C?n" triat Management, too, is.composed It is the challenge that

cepts and methods tailored to the

particiilar needs of

can

aloue — but it bears a
H°w is this :to be-done? Books heavy and special part of the re„

subject.

under way.

improve

management

political changes in the Ameri-;/
change

in-

well-being;
If these is one

our

survival.

more than any other which
hold this threat in check —

have todav from

steadily

knowledge

Kiiuwieatee

and

thorough

to the tremendous social-

process

\% tHottomTlt^^alsq n^ds

can

This

everv

very

thing

01 lcaatrsmp ai eveiy two blades of

level-; it needs

in this tiny world a prospect of

things

ure

created

hands
nanas

manv
many

leadership7 at

standards

and
ana

steps of production and before they
distribution required to .convert an few.
Many

mo¬

purposes.

implications

each

the

lead

titanic effort
use
of that

'fhat challenge embraces

confronting management; the

slower

change.

whether it be
automibiles by the million, air¬
planes by the thousand, rockets by

huge sums

«•;.

t\vq!??^xIun the ousiness jems

all

Even more important
more rapid expansion

ever

of human

tives

larger.

is the

Expansion

tremendous thing. Yet

merely

much

will
effort !, to

conscious

sential

important.

that

ngree

things,'

But I believe you

CGurse

prob'that are appallirig uri/both
was'
it—so tar asxis human- nurnber and size, : tn our owri
done on a much smaller scale and Jy P°sslbl.e
1,1 3 way that proper- COUntry we face the prospect of
at a much slower pace.
Manage^
f
steadyi.and-ra p i d ■ population
ment was adapted to these cOndi- [,l a** tbe peop^^d^t^^bJ^^bQ growth;^ Wj|; knpw:-tbat the Ameritions. The smaller size of business business- . . ana thats just about
pe0pie
will demand v con-1
made it possible for une .s&f.'d-ifcw
V ^i£? y tiniiajly- higher liyiiig- standards
minds to grasp the essential prob-\ ' Nbw/T /want ' to^ sayherd; that§ arid/grcaferf securfty^^
fP-

tvveen management then and now,

Rapid

More
a

0£

Vv ' ?

j0^

will think ot other

you

This is

have to da a

various levels must
pr0per

and

get

publicly owned; the percentage of for? I believe two important obhistory that progress from' this
ownership by any one individual jectives are those: stated in
pubexperimental stage will be fast— Management An Agent of Change declined. The older, simpler methlications of the National Manager
much faster, probably, than the
The role of management in this
ods ol management were no long- ,-nent Association
leariershin and
advance
of
the Air Age from development has been active and er
adeauate
Existing
functions
-V
-^sociauon leaaersnip ana
ei
dacquaie.
existing
mncuons
unlty. Management, needs higher
Kitty Hawk to jet propulsion.,.
large, Management has been es¬ of management were subdivided
Ever

Cwmn)Mnlcatiwl, Ther#must ,be
more effective methods of'communicating in both directions, ac¬
curately and without delay, the
information that management " at

in my opinion, Management has that the working papulation will
done a good job" and is doing a not be larger but smaller
as
fast that, individually, each is lost to weigh and analyze critical de- good job/*. . good enough, cer-.; a percentage of total population—
in the crowd.
We are conscious cisions.
Many business concerns tainly, to accomplish its part of because of longer schooling on one
only of the whole movement and were closely held by owners who, the - progress achieved thus far. end of the age spectrum and early
sometimes confused by it as well. in many cases, also held the top But: we all know that there
is retirement on the other. We know
It seems
as
though the total positions iri management: Business room for' improvement and that we will continue to face all :.the
knowledge of Man, accumulated was generally regarded as very improvement ^must.
be
made; problems sumed up in the, word
over thousands of years, was sud¬
much a private matteiv •
~ v:
/ From .all" indications/The scope, "inflation,"
We-know/that
denly triggered into an explosion
Then came the explosivefdeveL
the speed and the diversity of throughout the world population
of development—an explosion un¬
opment mentioned before.'Busi- business will increase.
The de- is growing at an accelerated pace
doubtedly made many times more ness
organizations multiplied in ^uuuds on management andy thoie—■ und that even the most'*.backward
powerful by the desperate urgen¬
number, grew in size
expanded f°re>
respunsibilities, will grow countries are suddenly and :'inf¬

experience of. modern

whole

the

things—and many
memory—is
marvel in its own right. In an

earlier

necks

be « given;

heating, now

central

to.jfeei that he- is- just t as

widespread and later, of course,

them would have been big

••

us,

tion

that

others of more recent

And management

Space
of

conveniences

flood

the

Each of these

comic

are

and

shouid tfeel

man

.;reasGn

the start of air conditioning.

rightly so.

now.

gadgets

start

the
so

strip.
Today,
it sounds per¬
fectly sensible
and

accurately

today we just
can't live without. We remember

peo¬

ple

title of

to the. public not only for

•

goods and services at fair value

—but also for the continuous imn- much a part of management asthe
provement and new development chief executive
that all mem.that is the only possible source of bers> of management e.share/the
fact, that we found it necessary rising living standards and new same objectives and responsibiliestablish a separate electronics Job opportunities—in short, Man-^^gg:
y

department,
specialists.

and

sounded

most

flimsy

the theme,
"Management
in the
Space
Age," would
have

ago

called the
"flickers"
wireless telegraphy
still a thing of wonder
radio
a crystal with a cat's whisker. We
remember the advent of electric¬
ity in the home, bringing in its

Only

few

airplane

sion in human

affairs.

the

something

dimen¬

new

with

buckboard

operations,
isotopes and

television, the electronic

contraption of fabric and wood
the telephone a rarity in pri¬
vate homes
motion pictures

new

motor

was

Steel

radio-active

other electronic devices—so many,

remember when the auto¬

can

mobile

National

also induction heating,

space

something

point to recent and

us can

productivity. In visualizing tremendous requirements

that

believe

sound-rather—
to-employees-for- wages, - o wnde vices.-HeshouM-begiven
management working conditions and ^security tl the opportunity and encouraged,
am sure that
and" for: the relations % with em- througji . definite " programs, ll to

important changes
in
his own
plant and business operations that'

definition

Yet I

ual starts up the mangement ladder, he should not be left to his

for its

—

ployees and their unions.
broaden and improve—not only to
•
to customers for prices, prepare for the next higher job,
Quality and service. ;'-'
, .
but to increase his. understanding
came
from outside sources.
One'/ ... to suppliers for fair dealing, of the entire management field
simple example:,. In steel-mills,
...
to local, state and Federal s and his realization that, as a repopen
hearth furnancCs are.now Governments for taxes and many resentative ; of management,t he
being
tapped * faster i arid more other, things. ." -bears special responsibilities as a
safely with implements/adapted* //>/♦ ,* to- plant communities for citizen.- ;
1••./ /3/r v.-;-:.
from the Bazooka of World-War' good citizenship.
Integration. T3ie first line foreeach of

of the

man

well as a subject, of change and, in view of the still
change and faster change to come, sets forth a check list
to improve professional managerial performance.

may

owners of the business
successful operation.

„

•

far

concerned.

millionths

even

things

academic

posed by the oncoming space age, the head of the fifth largest :
steel company describes role of management as a principal
agent,

Such

year" by the National Management Association, Mr. Millsop
declares the answer to problems created by population growth,
inflation and defense requirements, is a constant and substan¬
tial rise in

and

second.

Corporation, Pittsburgh, Pa.

President, National Steel

On the occasion of being

Thursday, November 13, 1958

•

thousandths

By THOMAS E.

SL
once

considered

entirely

that
.and

mere

skill

Boston.
=e^scengaged in investm^
work in

outside

the scope of management.

ma"age~
sibility. And we know
technical''
knowledge

Brittin Co. Formed

longer

SAN MARINO, Calif.—Charles
enough.
To -have
sufficient "people
with S. Brittin is engaging in a secuResponsibilities
management potential available, rities business from offices at 2275
Consider the present range of'there must be systematic methods
Longden Avenue under the; fiim
management responsibility. Man- for locating and preparing future name of Brittin & Co. Mr. Britt|n
agement is responsible:
management materials:
;
'was formerly with Oscar F/Kr^t

Today's Managerial

...

the

are

stockholders—the

Development-

Once

individ-

& Co. and Aronson & Co.

Volume

Number

188

5794 ;

.' The Commercial and Financial Chronicle

(19871:11

policies

From
,

By JOHN C. LEGG, JR.

General Partner. John C. Legg &

Washington
Ahead
of the News

Co4 Baltimore, Md.

and

casualty stocks and finds

much higher for
to

Democrat

envisions

not be

encouragmg»

1—

Likeyi]every

selected

the

time.

same

'Cof

$1,000 had been invested in each stock
at the highest price it sold during 1929.
The
tables then pointed
up
what- each original '
holding would have been worth at the high
prices of the lastk year in each subsequent y
five-year period.;^ The results /were over- •'

:
"

% has

;

.!.

accompanying exhibits were copied from the
original article. The only change is that the
S.

Guarantee

has

insurance; stock

eliminated

been

list

due

the

tell.an

■

V"-

1939

Through

+1049

1954

$790

1944

$620

1934

$2,150

440";;

400

1,440

720

1,140

2,940

International'

Harvester

1,000

330

500

600

810

830

Gamble___/_'___

1,000

450

670

600

860

1,520

Ins.

l.OOC

of North

Co.

& Marine—

St..-Paul Fire

887

1,074

650

i884

576

744

788

608

800

1,138

1,814

1,000

America*

520
225

1.000
1,000

Fire*

Hartford

;

1:000

Fund *

Fireman's

604

885

1,073,

1,737

1,000

657.

859

1,076

-1,810

1,000'

603

834

1,254

1,741

1,245

,3,141

9,465

2.204

I- 3,229

3,300

2,612

3.226

3,768 r

4,623

5,665

There

3,616

4499

■

tS'r

■

•

Insurance

with

beat

this

one

enjoyed

road

the

-changed

recent

was

greatly; improved

and

There

election.

stories he

even

were

brief respite
until he took

was

one

that he

re-

■

Vs'.;

•;

no will

/-l

•

i.1

•

■! ;

not

konw
But it

what
seems

that after their experience

Eisenhower, who

with

Kullman Governor of
:
;

NY
At

Security Dealers
meeting Of the Board of

Governors of the New York Secu¬

rity Dealers Association

•

New York. He dissociated himself

campaign

would not publicly be seen with
Nixon.
He does not yet*'refer to
ft

Republican victory and,
Republican leaders in
desperation claim him, they do so
with their tongues in their cheeks,
The general feeling among
—
....
as

although

Rooert N. Kullman

Opt- 30, 1958, Robert N. Kullman
°f John J. O'Kane, Jr., & CoM yyas
annotated a member of the Board
political philosophies of Governors for a period of one

Washington political observers is
that there is not the slightest difin

ference
between

Rockefeller

Harri-

and

year.

To have another rhan like
this in the White House, even if
man.

James C. McCormick

Sec. of

There

were,

course,

Eppler,

DALLAS, Tex.—James C. Mc¬

Eisenhower caused.

Cormick

many

Nov.

will become

which led to the Repub- Secretary of Eppler, Guerin &
thing was out- Turner, Inc., Fidelity Union Life
iican rout but one thi
standing: everywhere one went he Building, members of the New
found local Republican leaders York Stock Exchange. Mr. Mc¬
factors

J.'-J

^*-,4

aaw.^1

utterly disgusted and complaining Cormick has been with the firm
about Eisenhower. They were not
so much critical of his overall as corporate security analyst
/
■ ■ - ■
,

Financial advisers generally are now concerned at thd high
Of "bhie: chips," largely because of their, relation.,.
The contrary condition exists with the market- pTicfes v

earhings.

stocks which have been depressed

of Fire and Casualty Company

of the longest bear markets in insurance stock history./ ;
During 1957 arid 1958 insurance commissioners in more than,

one

different states approved increased rates ori automobile.,
policies; (In a number of states two or more increases
granted). In addition some changes were made in terms of, ;
policies and in a number of companies their commissions to agents;,'".

$3,390,000

Great Northern

forty

insurance

Railway

.were

were

reduced.

*"'•

•.

•

'•

Third

Earnings

Sees Higher

Equipment Trust of 1958

Also, the various companies have instituted tighter under¬
writing and expense controls. I now anticipate that the fourth ;
quarter of 1958 arid the years 1959 and 1960 will show markedly/
higher earnings. This is not to say that we expect many Of the;
companies to make money from their insurance premiums during
the year 1958. However, I do believe losses will be down sharply,
from 1957 levels and that a combination of premiums, investment
.income and tax refunds will produce overall profits in a number,
v of cases.
In 1959 all aspects of their business should be profitable/..

4Vs%

Equipment Trust Certificates
.

•

(Philadelphia Plan)

To be

mature

$113,000 semiannually June 1, 1959 to

December 1, 1973, inclusive

as to payment of par value and
by Great Northern Railway Company

guaranteed unconditionally

dividends by endorsement
.

for the

7." \

majority of companies.

MATURITIES AND YIELDS

important fact is that dividends to stockholders of - '
insurance companies are only paid out of income
from investments (usually for not more than a maximum of 75%
of such income before, taxes:). Such investment income increases^ •
A

very

(Accrued dividends to be

well managed

■

the years

City.

4.10%

3.50.

June 1961

3.90 ;

June 1963 and Dec. 1963

4.125

Julie i960

WASHINGTON,

HerbertMarks
»

3.70

Dec.

4.00

June 1964 to

1961

Dec. 1973

4.15

—

■

,r.

C^.

branch

office

direction

here

John

under

' the

Issuance and sale of these
.

Certificates

are

subject to authorization by the Interstate Commerce Commission,
which this announcement is circulatedfrom only j

The Offering Circular may be obtained in any State in
such of the undersigned and other dealers as may
.

lawfully offei' these securities in such State•

Cameron.

Mail address is P. O. Box 90L

CoHin^ Norton Brarich
KENTON, Ohio—Collin, "Norton

Jk Co. has opened a branch office
here urider the direction of^ Lewis

d'.%

MeCurie & Company has opened a

Liberty Street, New

IMrincipal of the fifm. ' -'

;

June 1962 and Dec. 1962

New McCune Office

Form Kane, Marks Co. '
Kane, Marks & Co. is erigaging
in' a
securities
business-f from
York

3.80 %

of 10%

•

offices at 95

Dec. I960

.June 1959

annually so the companies are able over... '
to increase their dividend payments.
i
J

average

edded)

3.25%

Dec. 1959

scant attention to Rockefeller.
run as a Republican in

market, prices

held

made the

grade, and Wendell Willkie who

hageri Douglas in his campaigns
The original purchase of $1,000 each/of the five; industrial / ^gainst them, first for the House
"blue chips" of about thirty years ago at the very highest price', / and then for the Senate, i do not
/ at which they sold in the wild days of 1929 show an average// believe - this. I do not believe that
appreciation at the high of 1958 through October 23 of .137%i/jhie;ever. told anyone he was sorry,
against an appreciation in the insurance stocks dt.Spftrecent •round: on the
,4riklAAP/3
-f Vv
" '
!i
Maybe an astute Investor would npt .fyAgy. :-ch$Q3& /trie';' same;',.'s^Jy^j^ enemies—and they are
"blue chips" as were selected in 1929 anck on the^ other hand,.//legipn—were outraged. Up to his
because of our continuing[research we would not select the sanieK.
smear attacks, they charged,
-insurance stocks but, by and large, both sets are fairly typical;
■
/ of the issues which could be used for our comparison,
r/nj.'■

shred,

gretted and attributed to boyish he were elected, a fellow who is
^enthusiasm his earlier attacks- on- at>ove parties, it* is felt, would
v,.
Jerry Voorhees and Helen Ga- complete the wreckage which

.//

Siocks still Exceea

the

telling how
voted, for
gubernatorial

who

from his enemies up

man.

the Fall Pf that year. All

to 1950.

did

Nixon

,7,535
"

1,040

+The highs and capital changes of 1949 were calculated
changes which took place in December were credited

■''Adjusted for rights.
in

■

;

^X^-R^ubHcT^.to

thought in mind. This is the way
to stop Nixon, they believed.-

2,210

2,126

1,448
-

Rockefeller
election

whom

with

persons

many

3,440

Casualty*-/.

■=

•

in his guberHe showed he was

There

Nixrih.

2.050

840

Reinsurance

i i. :

„■

very

lot"

the outcome will be.

-*»•

race.

* somebody

10/23/58

460

Insurancfe_____i_i

•

blitzkreig is pulled off
for Rockefeller, and is successful,
it is my prediction that 'what is
left of the party will be but a
a

The, fact is. that every left fact, he wouldn't, let Eisenhower
Winger-in the country has found make a speech for him and he

$3,350

$720

$460
250

Federal

«*•

^at^oTh~m^ign'

•

1,000

Continental

by the

licity that attends, not all or even from the Republican

1,000

American

to him

great campaigner. But the pub-

left

He did not

John c. Legg Jr.v •

Procter

they

v'.

1929

If such

until 1960,-we
about. Nelson,

now
a

wilderness.

pay

$1,000

Electric_l_x.^.-._/l_

win

Rockefeller and his being the man

natorial.

General

from
hear

tofy, in New York

interesting story.

Gfeneral -Motors*14

party,

;/ Now the man won a signal vie- did not, the G. O. P. leaders will

n
it

in the pants. I have aldoubted that he expected to
- • ~
• but he intended to have a

good time.

mfentipn

To lead the Republicans out of the

ref-

some

erence.

merged into Federal Insurance _n 1953.
in 1953.-The newly added ^
columns of the periods ending 1954 and October 23, 1958 continue
was

So,
shall

1960.

as
so-

profanity.

suggestion of him. /;;

;4.. in the newspapers. They will not
let; the subject drop..
/.

from

act
fact

without

curred in their ranks

h t it.-

The

record of it but it would

Democratic

ways

interesting to know how many
heart, attacks and Strokes have oc-

Nearly- every.
day there will -

It is both timely and interesting to go; back i
nine years arid bring-the picture up to date. * L
The 1929 through 1949 figures used in the. f

the

had

saying when challenged
why he had left: "I didn't leave

leaders

army

;

pundits

the, li
/:

agaiftst him

has been.
liberals
cannot

name

have

whelmingly in favor of the insurance stocks.
:

;Lby. fhe

assumed

was

/ that

intense

15,

Willkie

hit-me."

made,
the bitter'

say,

ever

called
his

was

there

action

Now; it is safe to
^ ,
ness

1949. ^The purpose of'i-.thatc'-^^ t *k e s .or
compare the twenty-year market action of a list$a k e
/ will
be comselected in .1929 of "blue chips" with that .pf mented
upon
a group of high-grade fire and casualty stocks
article

—

in g,

probably will
n b t:
|.( But

I was.the author of an article entitled "The Industry !
Best" which was published in "The Commercial and Financial'
....

any

^
;t

Chronicle "tissue of December

Willkie,

and

the

in anything

the Presidency ^1360, he is in hsird and, although his campaign
After his nomination he took
wlitrTi'T.nnfJhS-«Sfeatest. build jjp.we-hgve—did. not produce results,-*it -wasthe- -a* delight- in -kieking Republican
which is not
seen/
It may
most effective one that was,

overall profits and dividend picture.

concerning

people.

cuciai

and

stocks,

insurance

he said I will eat my hat. He

are

Mr. Legg notes general

insurance stocks.

rnnrerriJnda v alimiTmadfpITiriVi' Iftr'TihiVVlime
about market price for blue chips
extended

If there

intentions

case

been

appreciation is still

average

the

same

had

feller's

smear

by the

way

the

for. Rockefeller: along
convention
time
just
as

and

T Regardless of what Mr. Rocke-

was

be that there will *be

may

there

By CARLISLE BARGERON

previous market
comparison between "blue chips" and hifh-grade fire

ignoring

blitzkreig
about

Prominent Baltimore broker-dealer-updates
action

his

but

"" '/ l

party."

HALSEY, STUART &. CO. Inc.

Straus, Blosser Branch
'

PORT, i 11.

Straus,;
Blosser & McDowell has opened a
branch offiee in the State Ba^k'
F R E E

Building under ;the management/
of Urban T. Leiriinger^'
;
*.
-

.-w

FREEMAN A COMPANY
NdVembei 7, .tfSK

McMASTER HUTCHINSON A CO.

<
*

•

(1988)

The Commercial and Financial Chronicle

fund

Bond Market Outlook and

intake

deficit

net

cash

Oar Economic Prospects

all

trend
the

indications

will

rate

that

are

continue,

automobiles

may

sibly

The
sion

reces¬

1958

1957-

the

was

shortest
since

which

nanced,

before

World
It

one

had

have

dential

War

two

bottom

W. C. Jackson, Jr.

earlier

lasted

Normally,
the

and

few

revival

bounce

for

postwar

starts.

been reflected

changes

markets.

along

That

the

and

markets

the

wholesale

0.9%,

stock

believe

that

Now,

inflation

table, but it is clear that

our

policy and,

in order to get
perspective in focus, we should

start back

not

inevi¬

not yet been able to take
the

necessary to prevent it.

tary

as to

some

August

23,

when

the

14 months ago

1957

exact

Federal

steps

The most

important step, of course, is to
get
the Federal
Government's fiscal

When

erable. This problem is in Canada
also.

they reversed their policy (Nov.
15,1957), they moved very rapidly
toward lower money rates, with¬
out first preparing the market
by
pumping in reserves. Thus, they
cheated the appearance of easy

Why Economic Prospects Look

money
even
more
aggressively
than they created
reserves, and
these tactics resulted in the fastest

house

deficit
to

order.

during
a

$12
that

year

prosperous

billion

one

looks
intol¬

Good
If we look at the
various
tors of the
economy, I think I
show why the economic
for

United

Looking at the
we

find
at

are

that

States

consumer

all-time

are

and relative

can

During this period the market
absorbed

good.

we have not yet returned
to full employment. At
the same

In regards to fiscal
the past, when a

time, consumer installment credit
has been reduced
by $700 million
during the year. These two fac¬
tors are being reflected in

be,

but

consumers

have

money, less debt, and a
brighter
outlook than last
year, so I think
•An
the

address

Canadian

Banker*

real,

curred,
in

by Mr.
Group of

Association

Canada, Oct. 24,

Jackson
the

America,
1958.

before

Investment
Mont¬

the

even

rising

sales.
We don't yet know
what the automobile
picture-will

tremendous volume of

duced the largest volume of public
financing on record.

even

though

retail

corporate and municipal bonds. In
fact, the first half of 1958 pro¬

sector,

incomes

high,

ever

experienced, in terms of volume
changes of rates.

sec¬

prospects

the

in the bond market

recovery

some

policy

...

depression oc¬
deficit would result

Government's

budget, but

1953-54, the cash budget
was not
seriously unbalanced.. This
year - the
Governhienf ' increased
spending aggressively to combat
the recession and extended the
pe¬
riod of

unemployment insurance,

with the result that the
Social Se¬

curity
over

stead

funds

have

net cash

having

days

tension and
tic
a

and the

years

man

and

can

international
to

seems

his

renew

that

optimism

revitalize

his

faith

to 2 %.

This

reducing

net

serves

from

around

was

fol-:

free

re¬

$500

million

to $100 million.

This

things

and

think,

prices last winter.

than

nervous, unbalanced condition of
the market when the Fed started
its reversal of policy,
the bond

and

has

Since
a

the

part

Reserve's

of
deficit,

Treasury's

Fed has been content to sta¬
bilize its policy, permitting estab¬
lishment of a calmer atmosphere,

the

being

purpose

encourage

distribution of the new issues out¬
side of the commercial banks. The

danger

inflation

however, and

the

tinue to combat it.

still

Fed

exists,

will

con¬

We shall prob¬

ably

see increases in the redis¬
count rate in the near future.

ably the third week in November,
and
again the Federal Reserve
will probably be prepared to make
reserves
available for bank un¬

derwriting and for seasonal loan
increase.

Deupree

Look
for

get

things

been

done

matched

on earth.
backward for

example.

That

just

years,

about

matches

been

such

at any

never

time

other

history has there
made

progress

any

country. Our growth as a country
has been amazing.
I'm not going to recite a

long

list

of figures
to illustrate the
kind of growth and progress we've
had in the last 50
years, but I do
want to mention

about

couple of facts
earnings and produc¬

the

manufac¬

taxes

dollar since

and

Treasury is convinced of
importance of extending debt

maturities
tinue to

talk

measure

they will

pre¬
con¬

intermediate and

long-term financing, which will
keep the long-term market nerv¬
ous

and

rally.

prevent any substantial
If they try any long-term

financing, they would have to of¬
fer at least

The

4% rate.

Treasury

Reserve

all

and

the

Federal

conscience

are

complete accord as to their pur¬
pose to prevent inflation, but in
procedure they are hurting each
other.
The

1908, but not enough

keep the average manufactur¬
ing employee from being a great
deal

better

off

today.
His real
hourly income—after accounting
for the changed dollar value—is
about

1908,

three

when

the many
receives.

times

what

include

you

was

some

fringe benefits he

now

The average

employee also has
a
great deal more job security;
his work is much easier and
safer,
and his working conditions have
been
vastly inproved.
Add
all
these to that tripled real income
and

it's

easy

see

how

tremendously better off today.
Here's the other fact which
goes

Dominion of Canada in
converting
over half its debt into
longer

right along with increased earn¬
ings: the average manufacturing
employee today is producing about

maturities

three

outstanding

success

of the

well

has

encouraged

many

observers to propose that the U. S.

Treasury might well undertake

similar operation. It should be
ap¬
preciated that the U. S. Treasury
has sold a very substantial amount
of intermediate

and

long maturi¬
ties, during, the, .past 12 months,
culminating in the June issues of
$1.1 billion 3V4S of 1985 and $6.9
billion 2%s of 1965, and it is en¬

tirely possible that partial

times

much

years

ago, although he
hours a week

only works
compared with

sion operations will be effected in

which

•An address by Mr.
Deupree after re¬
ceiving the Gantt Award from the Amer¬
ican
Management Association and the
American
Society of Mechanical Engi¬
A.M.A.

through

gone

saw

two

years

devastating world

wars; a third war, localized but
still horrible; and the
continuing
threats of more wars. Even with

the terrific cost of defense due to
the cold war, even with much of
the

world
nt

c o u

including our
moving
toward
socialism,

taxes
few

theories

levels

own

the

with

even

undreamed

decades'ago, the United States

has

had

has

remained

fabulous

growth

and

basically sound.

Now how have

Where

Fall

ference, New York City,

did

done all this?

the strength?
Certainly there is no "pat" an¬
swer, but freedom and character
get

stand high

the list.

Usin? Individual Initiative
In

view,

and backbone

kind

which

isn't

other

the

real strength

our

country lies

freedom-we

duplicated

have

any

That is "freedom

country.

of individual initiative"■—the free¬
dom of the

his

individual to exercise

initiative in whatever way
that seems best to him.
own

The greatest force for accom¬
plishment which we have, as in¬
dividuals and as a country, is the
right to exercise our individuality,
to

live

ourselves

our

goals

make the fullest
to

those

reach

minds, to set for
in life, and to
use

of uur talents

goals.

Living and working in this kind
of atmospnere results in our peo¬
ple having great individual
strength
Most
ter

and
our

and

strong
character.
people value charac¬

principle;

of honor

they

have

as
citizens; they have a desire to
keep moving forward and to help

Management, aided immensely by
scientists, has been responsible for
this increase.
Through pure and
applied research, productivity of

the

coun¬

10 to 20 years.

produc¬
tivity is the key to our improved
standard of living in this
country.

and different

new

We've

sense

hours for the worker of 1908.
In that fact of increased

neers

try every

conver¬

actually gone years to come; but, in my opinion,
outlay. So, in¬ there are several basic reasons
Social Security
Continued on page 39

make the United States into
prac¬

inflation

The

—

growing

typicallyimagination and spirit,

American

have greatly reduced the value of
a

seen

coupled with
population
and
the
—

must

Earnings and Productivity
course,

per¬

the 'last "50 'years,
inventions
new

tivity of the average
turing worker.

ideas

per

have

half-century,

right

saying that
in world

productivity

'/}

tically
50

myy experience in industry, for I
started
to
work
for
Procter
&
Gamble in 1905. I think I'm

increasing

Throughout

country

any

good

and legitimate increase in
standard of living is through

son.

haven't

incidentally,

October financing

the

will

which

over-ex¬

Federal

pressed the
intention. ;

probably

history of United States
clearly that our country
always had a basic strength

has

market

Richard

years

the

Because of the

historical

real

the

their

wage
and
salary increases
alone—if they continue to realize
that the only way we-can have

any

period of

show

shows

the rapid rise

don't

and reject the idea that the
standard of living can'be raised

careful

look

man¬

anything has

icans

encouraged

scientists.

sense

which

strong,

happened to coin¬
cide with the liquidation of tre¬
mendous speculation in Governinept*bonds (estimated by some
at $2
billion), which had been

and

tinuing rise—and it will if Amer¬

great.

action

.^particular,

to this combination of

owes

course:,

made America
so

increased tremendously.

It's unbelievable what the
world,
the United States in

changed the
Western
civilization
more in
this century than
rising
productivity in America.
The future should
bring a con¬

many

then

has

man

think

he'll only take
now

agement

great

time

this kind of service

reasons

possible.

vast array of domes¬

problems, it

many,

venting inflation,

big boom of 1955-57.

that they protect the consumers,
producer. The industrialist de-;

those

the

these

about

to the

have

they gave the sig¬
by raising the rediscount rate,
1

anti¬

rather

inefficient

was

reserves,

Reserve
raised the rediscount rate V2 of 1 %
to 31/2%, which was the final blow
.

the

carefully

from

Federal

scribes how industrial
management has served the entire-coun¬

country,

lowed

declares

question of controls over com¬
three suggested principles which include the

try in the past

Fed

deficit financing will be announced
within the next few
weeks, prob¬

Bond

the bond market
should first consider our mone¬

bond
do

the

Market

index

and

evi¬

than

this

nal

Chairman

being used to shield the inefficient firms

designing of legal controls
rather

very

The next instalment of Treasury

The phenomenon

another

Monetary Policy and

prices rising during a recession
much, I believe, to heighten
the fear of
inflation, and the pres¬
levels

economy.

did
ent

that

There

major capital
goods boom is in the offing, but
at least the capital goods sector is
not going to be a drag on the

prices reflect that fear.

economy.

quarter.

dence

fact

price

most

the

fourth

Quite the contrary
the con¬
sumer price index went
up 2.2%
during the recession
(between
July, 1957 and April, 1958), and
.

National

important stimulants
The recovery
picture was made complete when
it was announced that plant and
equipment expenditures could be
expected to rise slightly in the

bond

during the recession we got
downward price adjustments.

even

of the

has

thing that in¬

Gross

shift in the inventory picture has
been and will continue to be one

similarly sharp

stock

the

shift to net inventory accumula¬
tion in the coming months.
The

bottom

upturn

petition based

bank

■

•

Board

Cimpany

consumers.
On the occasion of
receiving
award for industrial service to the
community, Mr. Deupree
calls for a new
approach to the

permanent debt, be¬

the

Gamble
were

& Gamble

potentially

Board, The Procter
Cincinnati, Ohio

than to protect the

financing.
This year
Treasury's cash deficit

our

laws

Therefore, in June the Fed, as
1957, again suddenly and vig¬
orously reversed its policy and,
again as in 1957, instead of pre¬
paring the market by reducing

substantial

trust

fi¬

didn't

that

went

looking ahead to

Procter

encourage

credit creation.

con¬

during the recession, is
slowing down, and we can expect

before

We hit

Another

fluenced

a
«

Product

April and started right up
again in May. By August we had
regained more than half of the
decline in industrial production.
speed

highway

inflationary.
evidently
decided to try to restrict financing
of this deficit by the commercial
banks, which would have involved

last

Government

will

decline

reces¬

The

than

picture. Inventory liquidation,
which accounted for %s of the

months.

months

happen this time.

' •;f '•"
' ■',! '.»•..
> *
artf approaching k'a turiW
around in the business inventory
part.

only
nine
months,
from
July
through April.
sions

which

struction

lasted

Our

will

1954

must view the current cash deficit

in prospect for non-resi¬
construction,
much
of

upsurge

Chairman of the

addition,

cannot expect any large
cash surplus in the first six months
of 1959.
For this reason the Fed

level since
early 1956.
tighter money in prospect,
housing may not sub¬
stantially exceed its present level,
but the construction industry will
be well supported
by the great

"slip¬
ping back."

part of

cause

residential

porary

of the last six months must become

With

tem¬

1954.

cash

temporary

to have

year

By RICHARD E. DEUPREE*

but, in each of these

most of the

highest

experi¬

ence

of 1954 and first half of 1955), and
the deficit financing was largely

ready
had
a
vigorous revival,
with August housing starts at the

pos¬

And Our Anti-Trust Laws

surplus in the
succeeding six months (first half

Residential construction has al¬

may

substantial

year.

be slower and
we

bound

are

better

somewhat

though

even

Accordingly,

•auiumuwura

the

part

years we were
,

debt maturities.

and

Management

the

also true in the

was

Thursday, November 13, 1958

American Industrial

the

substantial tax cut in the

business

fiscal house in order.

out of the reremarkably fast rate

half

latter

Certainly not
opposed to lengthening the federal debt, the banker outlines
six reasons as to why it would be much more difficult for us
than it was for Canada to effectuate a major conversion of

and

than

had the problem

and that

had

steps to prevent it, Mr. Jackson advises the most important

have pulled

1953

second

industry's spokesman summarizes what
he believes will happen to the American bond market in the
next 12months; indicates why economic prospects are good;
and depicts limitations to Treasury's efforts to reduce the
floating debt at a time when inflation rules the security market
and a major deficit must be financed. Opining that inflation
is not inevitable, though we have not taken the necessary

fund

greater

Investment bankitg

cession at

the

in the second half of the calendar

President, First Southwest Company, Dallas, Texas

deficit

year,

and

our

part of the
now have a

financing the seasonal cash deficit

President, Investment Bankers Association of America

step would be to get

offset

budget deficit.

By W. C. JACKSON, JR.*

operating deficit, they

Personnel Con¬

others

individuals and

keep moving forward.

People of this caliber—by their
actions

—

have created what

call the

"typically-American spir¬
it," that something which Amer¬

icans

than

have
the

country.
which
about

abundance

people of any other
It is the kind of spirit

makes

feel

confident

ability to meet the prob¬
lems of today and of the future.
It has been the continuing exerour

Volume

188

cisc

Number 5794

freedom

The Commercial and Financial Chronicle

o£ Initiative

by
which created
genuine industrial revolution in
tire: United
States, a revolution
not nearly over.
I do not think any single group
in this country has had such a
,

Port of New York

millibns of people

Pressprich & Co.; Equitable jSecu,-.
rities Corp.; Estabrook & Co:;F.S.'
Moseley & Co.; Paine, Webber,
Jackson & Curtis.; T;. F. Rothschild
& Co.; Dean Witter & Co:; A. G.

Authority Bonds Offered by

large role

industrial

Harriman Ripley & Co.

manage¬

ment in

leading the United States
through its unmatched growth.

cate

I'm

including in that group both

the men.who started and

their

ran

which

maturing in 1978

was

awarded

Net

the

Nov.

•

;

with

Oct. 1,

to
yield from 2.10% to
an
important part in this
according
to -maturity.
dynamic,; growth — government,;

churchy education, the professions,
But

etc.

believe

still

dustry has made

that

Briggs,... Schaedle & Company,
Inc.; Clark, Dodge
of Michigan Corp.;' Inc., 44 Wall Street, New York
Geo. B. Gibbons & Co. Inc.;
City, specialists in United States
Hemphill, Noyes & Co.; W. E. Government Securities, has an¬

sale

the

used

the

Guardia

and

New

Other members

Hutton & Co.; Lee

poration;

New

offering

Bonds

and

John

Charles

Struthers

Co.;

King,

McDonnell

'1 (Special to The Financial Chronicle)

J. Barth & Co.; E.

Co.;

Quirk
&

SPRINGFIELD, Mass. —John P.

F. Hutton &

William

Co.;

R. staff

Jay

C>
V

in¬

Indus¬
guided by enlightened
and managers—has been

owners

welding force of the American

economy,

Welding Force of Industrial

Management
Industrial

management has been

able to create that "welding force"

only because of freedom of initia¬
As applied to business and1
industry, it means« freedom to
build plants, to employ people, to
make and sell useful products, to

tive.

band

Good earnings

for the telephone company have

•

together as partthrough sale of equity
(common stock) to finance a new ;
enterprise or expansion, and to "
make a-profit or take a loss.
people

owners

The

tremendous

business
States

expansion

way

of being good for the customeiSeo

enterprise in the United
only because our peo¬

came

individually or in groups,
given the incentive to risk

ple,
were

their

time

and

money

of profit. This search for profit
through exercise of initiative has
been a major generating force in
the

growth of

whole society" ;

our

the United States.

Our steady rise of productivity
certainly has been generated bythat search for profits. And, as I
said

earlier,

chink

don't

any¬

thing in history.has had so muchinfluence

civilization

Western

increasing productivity.
Unfortunately, in other parts of

world

the

and

even

our

own

This fact is
tion

lot of people will say
greatly improved stand¬
ard of living which resulted from
rising productivity is nothing but
country,

that

achievement,.

economic

much

that.

than

achievement.

cultural

has

the

Because

major

alone.

opinion, the standard of living en¬
joyed in our country today rep¬
resents
history's greatest social
and

something that

It's :

role

receiving increasing recogni¬

by the commissions which regulate tele¬

phone rates and earnings.

our

can

But it'is not

the commissions

understanding, too.

only work best in the inter¬

est of all when it is

of all

played in increasing produc¬

concerns

It needs your

Regulation
'X,"

free to act in the interest

the basis of economic facts.

tivity, industrial management has,
I

Authorizing good earnings for the tele¬

think, performed a magnificent

service for the country which goes
far beyond
its

deeds,

material progress. By
management has also

stimulated
progress
I wish

cultural

social

and

in the United States.
more
people really un¬

derstood the nature and scope of

industrial

service

the
have

performed

for

Everybody
the rather
way

has problems. One of ours is

widespread belief that the

to low telephone rates is to

company's earnings

managers

the

United

States, not just in material prog¬

although that has been sub¬
stantial and has provided a solid
foundation for other progress.
ress, '

low

sure

keep the

possible.

Attractive

phone

user.

profit for the owners of the busi¬
That's true

ness.

What
as

far

progress

in the

company

limits

and long-range economies, and will
service at

higher price than

the customer would otherwise have to pay.

requires wisdom and fore¬

the

long

courage.
run

will return the greatest value

public.

individual

telephone

user, our

needs, where required,

ally
on

come

arc

increased rate

small. They

the average

customer's bill.

it goes.

should

that

have accepted and de¬

managers

important
concepts
of
responsibilities to society as

veloped
their
a

BELL

whole,
Profits and Public Interest
In

their

owners

ple,

search for profits

fact

for

of the business, for exam¬

managers

that

the

have

accepted the

profit motive

must

Continued

page

usu¬

to not more than a few cents a day

perhaps not understood

well

high degree

Such action, however,

Fortunately, from the standpoint of the

hazards for the tele¬

Handcuffing the

lead to poorer

political

this may seem at the mo¬

ment, it has distinct

company

sight and sometimes calls for

Of course, it

might be said that
industrial managers
really only
have one job—to manage an effi¬
cient business which develops a

phone

Roberts & Co.*

Co.; R. D. White & Co. Third National Bank Building.

Staats &

the

Inc.;, ZamoyskL has been- added to the

Co.

Jay C. Roberts Adds

Baker,

Weeks & Co.

the continuity of progress.
—

A.: Leisentitt

Co.; Chas. E. Weigold & Co. Inc.;

est contributions and has provided

try

had

Vice-Presi¬

Assistant Treasurer of the corpo¬
ration.

of the great¬

one

Godson

Assistant

made

dent,

Hammill & Co.; Spencer Trask &

Wood.

that

been

Corp.; Reynolds & Co.; Shearson,

Smith, Barney & Co.; Kidder,
Peabody & Co.; Lehman Brothers;
Lazard Freres & Co.; Kuhn, Loeb
&
Co.; Goldman, Sachs & Co.;
Stone & Webster Securities Corp.;
Eastman Dillon, Union Securities
& Co.; White, Weld & Co.; R. W.

3.65%,

nounced

Higginson Cor¬

York : Hanseatic

York
"

the

First

Co.;

syndicate include:

1977 is being made at prices

had

will

International Airports.

maturing from Oct. 1,1959 through

institutions
and
other factors in our society have

proceeds from

bonds

Co.

Becker &
&

of New York Authority for
capital expenditures in connection

due Oct.

other

Many

not being re-

Port

$25,000,000 The Port
Authority Consoli¬
Bonds, Thirteenth Series,
York

1, 1959 to 1978, inclusive.
of businesses owned
by others.. The group bid par for a combina¬
And I'm qualifying all of this by tion of 6s, 3V4S, 3,40s, 3^s and
saying it has been enlightened 2%s, to set a net interest cost of
management; not just manage¬ 3.56785% to the Autnority.
ment; but management of char¬
Public reoffering of the bonds
acter.

arc

offered.

issue of

New

dated

businesses and the managers

own

Inc. and

Blyth & Co., Inc. are joint man¬
agers of an underwriting syndi¬

(1989)

TELEPHONE

SYSTEM

•><.

■

■,

•

The Commercial and Financial Chronicle '.V.

(1990)

the

News About

Trust

Company

from

New

the

Jersey, Newark, N. J., died Nov. 9.
if

000

Banks & Bankers

Bank of Jersey

Guaranty

New

York

host

was

Company

Trust

7 to

Nov.

Club,
of
staff

the Bank's Quarter Century

organization

honorary

who

members

Arthur

Spellman,
of

Henry
Trade

retired

Fii^t Na¬
of New^York,
'J. it

President,
Company,

Trust

and

total

19, the oppor¬

meeting

special
has

the

30,

Bank

Total

and

deposits

were

had

Kent

reserve

resources

were

National

The

New

State

Jersey,

Bank

capital

Nov. 7 that at

the

offer will increase the Bank's out¬

standing

Assistant

George

regular meet-;

S. Cruse

was

with

Officer of

Trust

held

Bank

Nov.

John

Kent

Williams

has

Moran

was

absorbed

John

Reisterstown-Glyndon;
and

charter

title

been

former head

moted

Vice-President

beginning of the
the
Mr.

Murphy

1950 after

Bank,

to Trade Bank

Exchange

Corn

the

York,

New

Coin

Bank
in

started

with the

Chemical

now

Exchange

York.

1922

we serve

Vice-President

nearly 20 years of serv¬

with

ice

REPORT

PRESIDENT'S

Cooperman.

came

Assistant

the

He succeeds

year.

Herman

late

New

Banking

Bank,

Colonial

old

New York.

Mr.
in

Farber

the

worked

previously

Credit

and

Business

New

Management-in-depth, development

Chemical Corn
Exchange
Bank
and
Barclays
Bank DC&O, where he began his
banking career in 1951.
Departments

add to NSP's

Balance

don't

sheets

provide

William H. Deatly, President of
the Title Guarantee & Trust Com¬

York,

New

pany,

Otto

Nelson,

have

been

it's

Yet

States

today by Willard F. Place, Presi¬

consider

Bruce

Northern

Power
it

Company—and so helpful—we
among

•

Hall, Chairman of

and

employees

benefiting our customers,

shareholders

training

peo-

Some

courses.-

back in

are

students,

the univer¬

preparing

with

Across

the

system,

for duties

66,000-kw

plant to be built

power

engineers

connection

greatest assets

our

continually isend

•

Savings Bank.

Wood

characteristic

instance,

our

programs

progress

to management

pie

sity

the Excelsior Savings Bank, New
York.
Announcement was made

asset. -V

•

;; of

elected to the board of trustees of

dent of Excelsior

.'V. For

for list¬

General

and

Jr.,

ing "management-in-depth"

stability and

atomic//

NSP's

system.

aim at decentraliz-

alike.

the Hempstead Bank, Hempstead.

ing authority so

decisions

can

be made

L. I., has been elected Chief Exec¬

utive

Officer,

Mueller

has

dent and

Joseph

and

been

named

the posts left vacant by the death

of Walter G. Baker.
it

photos

Page

company

are

Just

the

,its people,

sponsibilities—with

Nov. 3. He

Mr.

Morris

the

ager

was

56. "*

Man¬

post

office of NBW.

the

career

the

which later merged with the New
Uochelle
Trust
Company,
New
York.
if

for

developing the

level,

including

Campbell,

The

was
it

Plains,

78.

PICTURED AT

iust south of North

-Y.

Chairman

announced

The

has

been

Joseph

the

Bank,

will

fice

the

bank's

Mamaroneck
if

sure

;.v-

this has

second

and

40th

of¬

Emery, 81, President of

the Scabright National
Bank, N. J.,
died Nov. 2. He had

PLANT...PROMOTING

POWER

GOVERNMENTS../JUST

"H0USEP0WER"

wish

could meet

you

for

efficiently

and more

them all

believe you'd be

their

interests

and

are
..

NSP's

FOR HOMES..,

15 of the broad,:management
increase

helping to

producing

person¬ /are

-fuel

impressed
the

service.

Responsibilities of the
tured

here

power

plant

from

scope

revenues,

Power Company area.

each

power

per.KWH than

These

'v-

vice

Clifton, 64, President

range

—

executives pic¬ -include

from planning

atomic

tions

-j

promotion of housepower..

development

regional

resources

day-to-day operation of all NSPJs

year

with

less:

the preceding year.

called

me<n

are

and

deliver

leadership

they deliver

example,
a

NSP's

even

with

for efficiency—

it.

These

are

operations,•for / 'corps

capability of nearly

1,500,000 kw.—

■

■-

ser¬

activities

with

and

Panama

Canal

Columbia

riv¬

foreign governments.

examples

today—and plans

generating plants—with

public

genera¬

upon

Their

industry organiza¬

Missouri

Northern-States-Power

They're called
and

dams;

for

it.

consultation

...

engineers;

ting plants."

1934.

Charles E.

ANOTHER DAY TO THESE NSP MEN

THE RIGHT along with 12 top NSP. officers

by their energy and competence,

been head of

the Bank since its
organization in

contributed

straight years of revenue growth.

contributing to the growth of the 4-stateHNorthern States

ally,

Westchester County.
Ira

v24

executives.

the

helping NSP operate

estab¬

Scheduled for early January, 1959.
will

We're

existing building and
the opening has been
tentatively
It

every

Company,

Nov. 11.

office

new

lished in

"manage-

Barry Avenue

Mamaroneck,. Dr.

Hughes,

team

Trust

granted permission to open an of¬
fice at 622 East Boston Post Road
in

individual at

"COUNSELING FOREIGN

and

County

White

improved by NSP's
y

efficiency—all,

former

Company, Bath, N. Y., died Nov.
.

are

planned program//V: / ment-in-depth."

PLANNING AN ATOMIC

the Farmers and Mechanics Trust

age

stability,

President and Board Chairman of

His

we;think,

those decisions.

Huguenot Trust Company of New
Uochelle, New York, Mr. Morris
as Treasurer of that
Bank,

...

long ;

former

served

Wilson

re-

prepared to make

Continuity,

to NSP's bas¬

for bigger

members

with

ago

And

Tuckahoe

Starting his Banking
years

gro.oming men

ofmour^"management-in-depth" have
been

grow¬

Bank's ~ Eastchester

Office, and had previously held
similar

policy of

due

action.

Assistant

was

scene
...

management.
ing,

the

-nearer

report

the depth of NSP

chester, White Plains, New York,
died

this

only begin to illustrate

William
J.
Morris/ ' Assistant
Cashier, NationaL Bank of West¬

2 of

Presi¬

Director. They will fill

The

room

grow—the

/customers

and

executives

Company depends

for

executives who

the

better to

investors.

tomorrow. '• A
are

growing,
serve
.

k i-

merged

office and branch

pro¬

was

■,*

Union
Maryland. The

Trust Company of

Assistant

Murphy

Mr.

Manager.

Maryland

under

Manager of its 48th Street office,
and Arthur L. Farber

National

/■',///

Reisterstown,
an

appoint¬
Murphy
as

been

Union Trust Company of
Mary¬
land, /Baltimore,
Maryland and

been

has

by
/.

New York announced the
ment

has

Merchants

State Bank in 1949.

1934..^:»

official capacity since 1932.

the

1928, having been
and /Newark
Company, Newark, N.

the

Trust

been in

associated with the Bank

following promotions were made;;

stock

^ / /:Clinton S. Cruse has been with

which

the Bank since

ing of the Executive Committee of

proposed

the

Bank

the Bank since

the Ba lk.

announced

the!

with the Bank since 1955.

charge of the trust operations of
Newark,

with

Alexander

official capacity sihee 1955.

named Corporate Trust

was

named

Bank

Frederick I. Wilson has
if

the proposal.

^v"*

the

Robert G. McCormack has been

associated

time, Alexander T.

same

Officer and Clinton

$174,000,000
in excess of

over

•

At the

$160,000,000.

Nov.

for

undivided

capital funds and
date

stock¬

called

been

Sept.

that

value capital stock, at $55
share.
There
ar^
143,000
shares outstanding at present.
holders

with

official capacity since 1953.•-

Trust

Investment Officer.

$10,357,525.

subscribe pro rata for
17,000 shares of $25

additional

Completion'

Schenk,

Bank

tunity
an

Nov.

added

associated

Officer;

Trust

Williams, Vice-Presi¬
Officer; John P. G.
Investment Officer
and Robert G. McCormack, Trust
George

Moran,

profits..

which

the Bank would offer stockholders
of record

19 to vote

His age was 62.

to stock¬

under

par

the

Bank

City

died Nov. 4.

proposal

per

Vice-President
tional

the

served

have

for 25 years or more.

company

holders

will

Senior

and

dent and Trust

ing each to $4,000,000; the balance

City, New Jersey,

Oct. 6 recommended

on
•

First National

of The

Frederick I. Wilson, Vice-Presi
dent

similar amount to surplus, rais¬

Directors

143,000 to 160,000 shares. Of ;

proceeds from the offer, $425,r
will be added to capital and

Thursday, November 13, 1953

with

NSP's

Volume

Number 5794

188

The Commercial and Financial Chronicle

Reisterstown-Glyndon

seven

man

Bank will
branches .by the
continuing Bank.
operated

fa.

years.,

the

He served as Chair¬
of

Board

Senior-Vice-President, Trust Offi¬

Directors

cer-and

Executive
1923 until J 943 and contin-. the
ued as a Director ;uhrtiFl948.
Directors'1* Trust

died

Nov.

the

was

son

[

Harris Trust -and ' Savings
Chicago, III.

Bank,
L

jMr. Harris entered the employ

of his father's investment
;
.

banking

house, N. W, Harris & Co., in
1888.; After working through all
departments he became managing
partner. When the firm was incorporated iri 1907 as Harris Trust

[ and

Bank,

Savings

Vice-President
in

1916

succeeded
a
post

'President,

the

became

bank

his
he

Norman W. Harris, founder of the

retired

Harris,' 91,

'•

and

father as
held for

Director and member of

from

Wadsworth

Albert

(1991)

mon

stock dividend,

the com-,

Palmer-'

hcapital

stock

American National Bank

ville,

Illinois

Mr.

Offutt

Dan-:.; Director

Committee,, who
as
of
.
;

will

continue

has

and

Chairman of the

increased from

was

•

and

elected

been

Directors'

Trust

$300,000 to $400,000, effective Oct. i Committee. Mr. Knapp joined the
outstanding!; Bank's Trust Department in 1949.
—40,000 shares, par value $10).v ; He was elected an Assistant Trust
31, (Number of shares

Officer in June of
Ellsworth "Moser,
The
of

United

1950, and pro¬
moted to Trust Officer in January,

President.. of

1953.:^/;

States National" Bank

Omaha,i Omaha,

Neb;

•

$200,000 to $400,000 by the

sale of

new stock effective Oct.
29,
(Number of shares outstanding—
4,000 shares, par value $100).
••

active ' duty

from

31.

Oct.

Committee

from

•'

Permission
office of the

«
was

>:«

land

Comptroller of the

new

Bank.

Alan

and

Cooper
Prince

Cashier. The Bank has a capital of
$500,000 and a surplus of $600,000.

Pfdi Investors

The

an¬

Planning

investment

business

Zea¬

and
Exchange Commis¬
registration statement cov¬
ering an issue of $10,000,000 12year
bonds, due 1970 which, at
is proposed, will be publicly of¬
fered by an underwriting group
headed by Kidder, Peabody & Co.
This will mark the first public

sion

New

Nov,- 7 filed with the Se¬

curities

Currency to National Bank of
Sar&sota, Sarasota, Flordia to open
President

Government

The

granted by the

distribution

vestors

in-

States

United

bonds.

Zealand

New

first National Bank of Stuart, George Beckerman, 15 Park Row, New Zealand is a sovereign state
nounced the promotion of Arthur*
!
York
increased
its
common: New
W,. Knapp.. from Trust Officerc to^: Florida,
City, is now being and a member of the British
*
Vice-President and Trust Off.cer.'. capital - Stock ' from ' $100,000
to/ conducted under the firm name Commonwealth. * *
-

He will succeed

Casper Y. Offutt,; $200,000 by

stock dividend

Net proceeds

and. of Preferred Investors Planning.

Governments

the

added

reserves
ahd
applied toward fts

exchange

foreign

will

later

from the sale vvill

of capital works and ex¬
penditures. The bonds are direct,
unconditional obligations of New

program

PRESIDENT'S REPORT Page 2

payment of principal

Zealand and

will

interest

and

made

United States currency.

sinking fund" for the bonds
for semi-annual pay¬

providing
June

$395,0do

ments

commencing

1961 is calculated to re¬
tire 75% of the issue by maturity.
The bonds will be redeemable at

option of New Zealand after

the

R. f. PACK

ALLEN S. KING

Chairman of the Board

President

Vice Presideht—Sales

V- P.—Public Relations

_v?6

V. P.—treasurer

P.-Dperations

.! \

leading

ex¬

porter of pastoral products, par¬
ticularly wool, meat and dairy
! produce, but in recent years in¬
dustrial production has accounted
for
an
increasing proportion Of
national output.
The country is

A. L. BURGESS

EARL EWALD.

-CARIT. BREMICKER

Dec. 1, 1968. "
New Zealand

[the

world's

exporter:

largest

the second

butter and cheese and

largest exporter of meat and wool,

Population of the country at June
30, 1958 was estimated at 2,282,-

y,
,

.000.
1959

Government's

The

capital

calls for an
[ investment of 85,000,000 New Zeatland pounds
(U. S. equivalent:
'$2.80) with principal budgetary
allocations for hydroelectric de¬
velopment,' housing constr action,
public and education buildings,
telephone and telegraph exlensiOn, national roads and railways
rolling stock and capital improve¬
investment

program

•

V. P.—Finance

CYRUS ERICKSON

R. H. ENGELS

G. F. JOHNSON

•'

V. P.—Asst. to President

MARVYN
'

General Counsel

E. K. THORGAARD
V. P.—Mgr. Minneapolis

D. VANCE

Secretary

V..

■

J. F. OWENS, JR.
V. P.—Mgr. St. Paul

ments.

Supporting NSP's top 12 officers, a strong
management team of executives like
■>

these":

Brody Inv. Research
Corp. Formed in Bcnvor
DENVER, Colo.—A Denver in¬
vestor and two Denver
4

the

chairmen

the Department
Physics, re-

and

Economics

the

announced

have

spectively,

•

University

both professors being

professors,

formation of the Maurice S. Brody

Corporation.

Investment Research

•

the

Officers

research
Presi¬

new

firm are Maurice S. Brody,

J.R. FURBER

R. D. FURBER

F. J. GLEESON

General Sales Mgr.

Dir. Info. & Adv.

Dir. of Personnel

■t

<■

C. G. HARKINS"

A. H. HAMILTON

Asst.

Mgr. of Purchasing

Comptroller

HIBBERT HILL
Chief Engineer

dent; Professor Alonzo B. May,
Vice-President; and Professor By¬
ron E. Cohn, Secretary-Treasurer.
Offices are at 801 Security Bldg.
render

will

firm

The

ice to
ment

super¬

advisory serv¬

visory investment

corporations, banks, invest¬
trusts, pension funds,

other

and

sub¬

investors

institutional
stantial

and

investors

individual

estates.
"

•

xm$w

W0..

will

studies

Periodic

econo m

i c,

made

investment „and

physical resources trends.

J. W. HOFFMANN

Mgr Fuel Procurement

A. G. KEELY

Dir. Research,Const., Ins.

! S: P. McGOWAN::.
Dir. Area Development

. C, N. RICE, JR..,
Operations Controller "'

A. G. SHOGREN

Comptroller

E. C. SPETHMANN

Mgr. Area Pwr. Contracts

Clarke Robertson With

Farwell, Chapman £ Co.

!i r.'

(Special to The Financial

THEIR

NSP:EXPERIENCE

their ages
"is

totals 498 years;

average.53.8.

balance

NSP management

youthful vigor,

mature

ertson has become

Farwell,

Exchanges.

formerly
Co.

L. J. STROMBERG "

Mgr. Income Tax Acctg.

E.A. WILLSON

Manager of Operations

I President, Northern States Power

Company

associated with

Chapman

the New York and

H. AjSTOKKE

Chronicle)

CHICAGO, 111.—Clarke J. Rob¬

South La Salle Street,

judgment.

Asst.' Comptroller

Mr.

with

Co.,

208

members of

Midwest Stock

Robertson

William

in the municipal

the past he was

was

Blair

department.

officer Qf

Fairman, Harris & Co., Inc.

The Commercial and Financial Chronicle

(1992)

Outlook for

Gas'Refrigerators
Board, Whirlpool Corporation

buying,

even

be.

then

Let

estima

trngY

t Ir

that

steady, annual,.-;
figure of 41
million to 4% ;

;

'
*'•

1 9 5 G-

Now, in
about which

Elisha

when it would

Gray,

•

be, in their opinion^ of.:the order
of 5 to 5 C million, units annually,

will

this is

the

area

can

the .amateurs- rpshed

/^heir

f-j6

by the thought that they

cwlcjrj t

version

(amateur)

the

years, ago.

^iie £irst development
the
automatic ice cube makeftwhieh
g0

be kept exclusive. However, one
js aiready on an electric refriger-

1he

portant

foot

refrigerators, because since 1950,

foot

new

its

eluding

some

issues, inof the aircraf ts

alter they had been

one

national

-at.

•

group.

■;

Humdrum Motors

of the

eom<^

general

electric

perform-

W^spoxugm wnen a sur

prise

refrigerator

he8checks "ts pro^lr So!

Sees

su£

showed that 93%

people oWning

gas

feature

the most

re-

was

imthe

refrigerator becomes a 15%
refrigerator when it uses 1%

2-for-l

stock split

was

had^eR^^ond

mat . nave nafl sucn a good

The ;inte?*est-centered

.Checkers Motors

gas

need

refrigerators.

Univac,

your

yea£

to be

should be born

pursue.

terms like

When you

these, the

mi-

bealin°theb^"nei^borh^od''ot

S25

million per year,
it is cumulative.

and, of course,

Now just what is the chance of

getting

such

promises

The. 10-fpr-l divisibn of that tlemand coirection, so it
t Atlantic & Pacific, isi
presumed that the bull
ran
out
of steam
swing: has more ground- to

r e a

prompted

competitive

its year's low of 241.

essential.activity fbr ail

utilities to

talk

•

^ issue- In the Process the
out" it i" ftock more than doubied over

that

able

;;

re-

sold rather^ quickly after it had

perfectly obvious
the merchandising

course,

gas

wn<=

cover. The /fact -that high
momentary spurt grade bonds are available at
It is my guess that of some two score points in yields that are the most handa

develop.

you

new«4

this

;sPni ne^^as rt:./ -::: *1 \
>
sponsible for sending several
In soaring to the"! highest
issues into action, including Jevels invhistOtt the indus-,

won't pnse.

You

therefore,

when the product and the market
are

snl it

stock

competitive fi61d.) *

heteve1 tbaT25%nof the ^ Aircraft where a 3-for^; trial-sectidn baiS,shown little
sales of refrigeralrs wUl spht;
appar^.tly was .^Sia^tbei^bf blat^excesSes

million units

of how well it will do

annual
be

refrigerator market

gas

1958

Split Stimulation

:
_

is my considered opinion that
a household gas refrigerator
such as I have described, the total
domestic

its

'.It

words

with

Gas

with

gas

but

American Telephone also tionary fears are responsible
an occasional spot in the fc>r much of the markets relimelight
including a - four- cent strength. .And they have

Point- °"e-day improvement stuck pretty much to quality
which was the widest daily items without regard for the
gain in this item in a dozen present times-earnings ratios,
The stock pushed above °r the immediate yield,

years.

200 for the first time since it

briefly

1946 and

was

re-create'

the

gas

refrigerator

In the face of this persistent

its demand for "growth" issues,
the rails

are

still lareelv

neg-

Lcted J

rwSoTwetave u^S " S°ld
a

of. potential* buyers,

•

best showing since 1930 when

way

had

prefer to report to

quarter'century,
attract much in

cannot

.underlines the fact that infla-

predictions'! T would kad achie'^d tha! 1 e v 1

you the facts
I know them and let you draw

some
the

you

inch insulation,

25% of Units

tj1e higher priced electric units, forecast
A recent

tention and the glamor away from
similar

•

°«V10US laggard "Ui the mter-

gas

speete with

product has brought forth suffi- insulation. There are several new
cient technological change to atdevelopments which suggest that
tract customers as other appliances jn the immediate
future we will
have done.' Therefore,
the cus- probably be able to use V/2 inch
tomers' dollars have;gone to the or
1% inch insulation in the walls
more-exciting-new appliances for Gf a refrigerator. This will give
the home./ Outstanding, of course,
the designers all kinds of ways to
is television, which reached nearly create
exciting new concepts of
100%
saturation,, in
ten
years, refrigerator configuration to make
Laundry equipment, with all of them attractive to the housewife,
the striking new improvements in
To give you an idea of how
big
automaticity, has taken the at- a step this is—a standard 11%

added

Therefore, and
over-simplification, let's

refrieera'tor

for the shrinking volume automatic ice cube maker,
-refrigerator sales per year is a
The second development that is
simple one. I do not believe the coming fast is that of thin-wall

not

were

first among the sturdier,

one

eye as

reason

have

faces

new

still out of favor

were

tackle its 1956 peak in the specific, background to form
mid 60's. 1
' t ;/
:.i/th^b^is>fOT^n^^^eCtu)ns

frigeratoy thought

Some

toying

change the

This

'
.

issues

refrigerator is being de-;announced.
The
issue .".had 3umPeloped right now. It is not yet been lollin" in the 50 bracket
mostly

Such

ator, and I am sure they will very
shortly be standard equipment on

be any more- wrong than the protes sionals had proven, them selves

■*

the

be reached

can

refrigerator,

to be.

seen ln history.

c^oetitivein all re^
the electric boxeL

£ar jias been available only on
^&as refrigerators. Admittedly, it
mediately ahead.you/hayoryo^-. would be a great saies stimulant
aWy'
noticeJmv. other situations for that product, alone if it could
that when the
error,

estimate

.2% million units/ The^iur^- about four

vcempletely.^^uhcma^^a^ ^o

0„

which

gas

ance

the

of^Vent^tn^.^ey up>v

When the «oing.was

gr°UP

this guess of mine as- more I1 laggard groups. LockMotors nad , : a humdrum
refrigerator whfch is heed narti^ularlv iumned in- existence
for„\tlld .most, incompetitive in first cost, and
when
f:cludin8 the lew-priced items

sell

have'b^n-so

that

sumcs

place which it reindustry will be - fortunate to, linguiahed ;to " other
appliances

gross

going

say

character of the refrigerator that,

1950;td af |>odnt-where,,this year, appliances,

are

up,

as unrest in the Middle East
continues. Gulf was the more

it's

create

once again, it will be an exciting
youiknow,exactly tbe-opposite purchase^for- the housewife. As
has happened.
The sale of ; re- the result; of these developments,
frigerators
hfas ; gone'v downhill the refrigerator will again take
fremi a peak of 6; million, units in its place as the leader in home

casters

showing

good, while the international

this^Um

will be to simplify the forecast and proopinion, pri¬ vide a basic
assumption on v/hich
marily by three technical develop- -

future,

Ib'fought out, in

ments which will

shall

untoward

Richfield was one of
in- the more popular items in the
surge.

peak which is preparing
; bring
Prior to the announcement
its i»w line of| pgssenger
which galvanized it. It was cars> -A -icld ittonly; entered
able to soar to where it could recently : so / there
is little

I ^mediate

gradu-^v.
rising^

until

dust™al S,t0cks

^something, I believe the rate of

base,
ally

the salient fac¬

I Obsolescence of refrigerators will
fbe greatly accelerated in the im-

as-

wnture

....v
on

believe

should begin in 1960 and continue

i things

con-:;

tinue

with

focus

which

[C thereafter.

units \

million

would

With nothing unexpected

the

Therefore,

[^growing population, and the ac¬
celeration of home formations that
petitive

expect,

target figure of my own. Future week to lorge ahead into um
developments will prove whether charted territory never before

j C this turnabout. First, of course,
| % there is the underlying thrust of a

we rev

would

you

replies varied greatly.

by 1964.

year

tors

uth orities C

a" iitfle" morf^I

'""

t~'

STREETE

tasticP10^eCti°n iS sound or :fan"

so,

By WALLACE

the long range sales picture might

which, in my opinion, will bring
the refrigerator volume to a base
aL'C' maKe
of more than four million units
lo
a year by 1961, and I think it will
sales levels
go on up to five million units a

War

compete

THE MARKET... AND YOU

goal,

utility
people
what
they
thought a proper expectation of

gas

The refrigerator, as a home appliance, reached its peak of sales in
195ft,4n which year six million units
were sold.
This figure includes

but

this

to ask many

gas

refrigerator sales and opines the annual load-building increment will be about $25,000,000 a year, cumulative.

scare

occasion

predicts sales of gas and electric refrigerators to¬
gether will reach more than four million units in 1961, revers¬
ing a declining trend from six million units- in 1950 to an esti¬
mated 2,500,000 this year. Manufacturer urges gas utilities to

Korean

re¬

have been

energetically pursuing
I have had

Mr. Gray

push

and

gas

nine months while

■

situation

refrigeration to greater
heights than ever. During the past

By ELISIIA GRAY, II*
Chairman of the

that

reverse

store

Thursday, November 13, 1958

38 high 38 274 after its
a
offe some of the
retreat from the all-time peak better yields around. Indi-

three-phase basis. Phase one,
will recall, was to reactivate it

310 in 1929. The first time
ever

sold above 200

was

cated

51%

returns

run

an(j

between

such

well

ideas to
the refrigerator
as
an
The third development will be
appliance. further, the usable liie frost-free
:
refrigeration where all
of a refrigerator, has turned out
improvements could
Great Northern, Seaboard Air
the frost is confined to areas out- face-lifting
to be much longer than
be made to the cabinet itself. This
-the big interest in lele- Line and Chesapeake & Ohio,
originally side of the refrigerator. Therefore,
we have done.
I am very happy
anticipated. Thus, the housewife the matter of
phone is the meeting of di- On an average basis the rail
defrosting is elimican
rock along for a long time
nated entirely from the customer's
rectors to consider
return ran almost 5% against
keeping her food cold in an anti- mind.
date and we are
quated refrigerator; With the wisWith these
less than 3V2% for the indusdevelopments and
dom of hindsight, it is
full of rumors that trials.
pretty easy with sales of the general order I a rate which meets the current rather
to see why sales of refrigerators
market demand.
some sort of stock
split and
previously have estimated, refrigJhave gone .down and not up in
Phase two of our program was
erators will
again, in fact, be the
improvement in the dividend
Some Rails Pick Up
these past eight years of a
growkeystone of home appliance mer- to put the gas absorption system rate was in the works. TeleXhe rail picture isn't enmg economy.
chandising. Therefore, it follows m the modern, square-look box, ^t^„
<tQ
unP
ihu ^vuuc ^
As a result of these things we that we whose business is con- in order to gain the economies T
classic $9 rate has tirely bleak, however, and

^crrSeC!v!ie, d^dTakc^hd 1928'

^ownnames as Atchison,

shiimed'l5 000!?as

dividend

manuffctunng It ac!!°n nfxt week, with the air

find

now

that

.there

are *

over

48,000,000 refrigerators in use today, of which more than 13,000,000
have

been

service

nine

One out of two

or more.

years

refriger-

cerned

with

the

profitable sale
either of the appliance .or its fuel,
or both,
should make plans to

aggressively-move, and ride, this
bandwagon

it gathers strength

unchanged since 1922.

which could be had by using the
same

box

and

assembly facilities

the electrical.unit.

This

refrig-

erator, the prototype of which is

Jf* expanding at

the

future

trend

frigerators, I'm convinced
are soon

see a

~IT

of
u

that

re-

dramatic reversal

of the past sales trends,

beginning

an
m

and

upward
r

the

climb
t

represented 8%
of the market.
That figure has dwindled steadily,
as you know, until last
year it
was almost non-existent. There¬

which is presently used but

fore, of the substantial drop which
occurred in total refrigerator sales,

make

at least 400>000 units

Ammutl *<&& 2'th? demise
Association,
is, 1958.

Atlantic

City,

J.,

Oct.

are accounted

°f the

§** re-

L^SOrator.
You, and we, have undertaken

incorporate
provements
in

it will

manufacturing
we

the

im-

have been able to
interim.

will

some

have been able to snap

multi-bil- out of the recession smartly,

dollar rate, however, the including Great Northern,
company's capitalization Others have been able to turn
which stood at 13,000,000 jn impressive results right
ron

ators in use today has no frozen t'oing uphill,
now on display in the Parade of
food storage space of any kind.
Now, for a moment, let us thread
Progress, will be available about s^ares
Thirty-three million refrigerators the gas refrigerator's experience
the middle of next year and it
in operation today have manual into this
panorama.
In 1948 almost
defrosting.
1°
400,000 units of the gas refriger- will be extremely modern. It will UP
ator were sold and this figure use the same refrigerating system shares.
Future Trend of Refrigerators

in 1929 and 30,000,000 through the business downend of War II is now turn, Chicago Great Western
around 70,400,000 being one of the shining ex-

Its 1,600,000 stock- amples.
holders are a family more
$
#
*
than twice as large as that in. ,. Some, like Southern PacifanY

other corporation.
-

♦

wen diversified.

are

in'

addition

its

Sopac

prime rail
change to insulation of a polyuOils showed some signs of business is the owner of two
rethane nature which will enable
stirring for a change, after large trucking subsidiaries
us to use the small wall thickness
they had been rather roundly and some 1,300 miles of pipeContinued on page 38
ignored in the market's up- line to handle petroleum

Number 5794

188

Volume

The Commercial and

(1993)

Financial Chronicle

4%% Bonds Sold

Louis

St.

stock

the

Natural Gas Pipeline

landbulk

a profit¬
Dillon, Read & Co. Inc. and
operation. Where other* Halsey, Stuart & Co. Inc. headed
a
group
of underwriters which
roads are reporting sizable
offered publicly on Nov. 7 $30,drops in their earnings over
000,000 of Natural Gas Pipeline

Southwestern, itself
able

Southern Pacific is
expected to show an actual
gain this year which means

last year,

dividend

its

that

twice

covered

over.

;

Co.

offering

could

issue

financing

closed.
represents the

public offering of mortgage
of the company, which is
one
of the pioneer long-distance
natural gas pipeline operators in
the country.

not redeemable from or

anticipation
at an

rowed

that

monies

serve

utilities.

bor¬

producers
companies.
The

has

embarked

expansion program which

involves the construction of ap¬

proximately 511 miles of parallel¬
ing pipeline and* related facilities

expected to cost about $70,000,000.

certain other gas
/*

company

upon an

connection with this program

the company expects tn install by
present
daily
delivery
capacity of the company's pipe¬ the end of 1958 facilities which
line" facilities
is
approximately will permit an increased daily
559,000 Mcf. For the 12 months delivery capacity of at least 107,ended Aug. 31, 1958, about 20%
000 Mcf and possibly as much as
of the company's gas supply was
derived from its own wells in the 195,000 Mcf.

The

interest cost of less

4.68%, but they are otherwise
at the option of the

redeemable

at any time at prices
scaling downward from 104% to
100%. The bonds are entitled to an
annual
sinking fund, beginning

company

are

available

the

shares.

million

There

of
are

analysts around
anticipating that its

market

some

are

dividend will be doubled next

which is a high hope that
isn't held out for many of the

year

market leaders.
sje

sj:

American Tobacco,

old-

time issue of solid investment

that has been a bit
by all the recurring

grade

dimmed

lung cancer talk, is also an
above-average yielding item,
its
return
at; recent prices

running more than 5!£%.
Despite the recession Ameri¬
can Tobacco's results for this

With statehood,

far show profits com¬
fortably ahead of last year,
with its new dual filter item
year so

just getting underway.

Standard

In the food group

available in a

Brands is still

return

Since the

bracket after

boosting its dividend twice so
this

far

The Ohio Oil Company operates

Peninsula—a discovery in
pany

broad

the Kenai
which The Ohio Oil Com¬

discovery of oil last year on

geologic and geophysical crews are

competing vigorously in

potential of this

participated—Alaska has become one of the
exploration regions in the United States.

new

state. Ohio Oil also has opera¬
Venezuela, Tunisia,

Libya, Somalia.

probing

year

Statement of

consolidated income

•

Nine months ended September 30

months. Borden in the same

Net Sales

port for the full year, al¬
though its yieJd is more mod¬

Depletion, Depreciation

est at around

33/4%.

Steels have fared
times than not

NET INCOME FOR

the

Bethlehem

available.

profit failed to

divi¬
dend
is
not considered in
jeopardy since it probably
payment, the

will be covered by

Net Income Per

Cash Dividends

[The
time

views

18,437,229

4,294,893
$ 23,027,554

THE PERIOD

;

11,209,296
$ 32,007,449

Net Crude

Oil and Natural Gas

Subject to adjustment
On October

Board of Directors declared a

2.44

13,126,753

1.20

26,693,000

1.20

Liquids Produced —Barrels

1.75

13,126,753

.......

by independent public accountants upon

28, 1958, the

stock, payable

expressed in this

necessarily at any
coincide with those of the

THE

do not

"ChronicleThey

Stock Outstanding

Processed at Refinery—Barrels

Crude Oil

common

1 $

Stock

29,344,000

11,136,000

11,289,000

completion of year-end audit.

dividend of 40 cents per share on

December 10, 1958, to shareholders of

record November 7, 1958.

results for

are

presented

those of
the author only.]

18,503,619

Paid —Per Share

the full year.

article

.......

and Amortization

Share Common

Shares of Common

laggard,

prominent on the new
highs lists as some of the
others, and offers a return of
around 43A%. Although the
the

$219,129,472
157,475,498

not

cover

$200,875,582
155,049,516

forth below)

Federal Income Tax

Provision for

well

Steel has been rather

third-quarter

and Expenses (Exclusive of charges set

but they, too,

.above-average

yields

and Other Income

Cost of Sales

❖

1957

1958

has also held its profits
up well and seems headed to¬
ward a record per share re¬
group

are

the industry's

and develop the oil producing

Canada, Guatemala,

tions in

busiest oil
Our

areas,

effort to discover

year.

shaped up
last

Its earnings
well with those of
for the first nine

Alaska becomes the 26th state of

the nation in which

Producers

•

OHIO OIL COMPANY

Transporters

•

gas

pipeline

other

and

volatile

float to around two-thirds

who

oversub¬

are

also

contracts with certain

term

Co.,. cutting
a

quickly

bonds

and

principallyunder long-

balance

to the company from
the sale of these securities will be
net proceeds

quarter of the
held by the B. S. F.

nearly

was

bonds

building supply
shares despite the fact that
housing is running along
smoothly and was, in fact, one
of the brighter spots through
;the recession/ A m e r i c a n
Hardware, for instance, has
been available on a yield ap¬
proaching 5% although it has
raised earnings* comfortably
each year for the past four
and is being projected to a
good gain this year over last
year despite the economic dip.
The

mortgage

first

in the

•since

first

scribed and the books
This

There hasn't been much ap¬

America

pipeline bonds, 4%% series due
Nov. 1, 1978, at 99V4% to yield
about 4.68%
to maturity.
This

High-Yielding Issues
peal

Panhandle field ia Texas, and the

1, 1960, sufficient to retire
approximately 95% of the bonds
prior, to maturity. The sinking
applied to the reduction of out¬ fund redemption price is 100%.
Natural
Gas
standing bank loans which were
Pipeline Co. of
incurred for the purpose of tem¬ America
and
Texas
Illinois
porarily financing a portion of the Natural Gas Pipeline Co.,. both
cost of additions being made to subsidiaries of The Peoples Gas
the property of the company in Light & Coke Co., together supply
connection
with
its
expansion to gas utilities substantially all of
the
natural
gas
distributed in
program.
Chicago and the surrounding area
For a period of five years, the
Nov.

the

amount approximating

products. It has vast,
holdings and holds the

Refiners

•

Marketers of MARATHON

Findlay, Ohio

Petroleum Products

The Commercial and Financial Chronicle

Thursday, November 13, 1958

...

(1994)

Commercial Bank Financmg of

Fund

serve

payments

add

cash

Vice-President, Chemical Corn Exchange

naturally presented
threat

Bank, N. Y. City

the

serious
functioning

have

ship financing program, as
no assurance to potent
tial lenders that similar situations

avenues

explains the

new

there

roles permitted by the advent of government
— in
the lending of money,

invest

three

Just

the

flag
scale

new

financing

of tankers and

the

the old 20-year

call

agaiiist

tive

owned

chartered

the writer,
among others, had urged the ne¬
cessity for increasing the Govern¬
'ship financing
ment insurance to a full 100% in

large oil

panies

com¬

dustrial

order

in¬

borrowers.

cor-

rations
presented n o
particular
problem. Also,

the

that

was

summer

average

classifying the in-

commercial bank,

A
properly within the
realm of the long term investor,
are members of the Federal Rewith experienced investment
serve
System.
In view, of this bankers serving as intennediaries,
decision, and as this new type of •+■.. Ii^ould like^to venbond becomes more seasoned and
observation
at long
better known, it would seem rea!a
«^Yea fer Jags
w seena
son able To believe that; increasing
be. flying
the succes?
amounts of such bonds may be /American
shipping" long range
acquired by banks throughout the financing program, and certainly
those state chartered banks which

this

•

A
thiseounfry

program,'

and

which

months

later,

1956, that Congress

recommendation

the

—on

few

Govern-

H. James Kenny, ' Jr. and Herthe.r commercial banks - cam contribute
greeted th e re cent ' to the successful financing of the man V H': :Kuver rhave been adAmerican flag replacement promitted to general partnership in
public sdle of the new Grace Line >
bonds, appears to have removed ; gram besides .the direct\lending. the i investment ^banking-/>aild
of
money
or
the ' purchase
ofr •
any lingering doubts fynThe part
of most lenders and investors- as'/ bonds.. One such service is acting: pi*
success

what appeared to

break

serious impasse.

was

States

vestments of National Banks and

United,

the

ment bonds

and

aware,

United

carriers to

background

are

you

term financing m any great voir
ume is normally outside tiie: scop6

of Title XI will be considered the

President on July

the

last.

special bulk

this

—

country as investments .(1) for a
can FesJ; af?ured ^?at
certain proportion of their time, nancial institutions of
in strict accordance thrift and
savings accounts, (2) as will cooperate to the fullest exwith the provisions of the existing
.part of their so-called i"scconoar,>
statute, regardless of how, much
reserves'%ahd (3) as possible. •
';.r
or
hoW| little monies may at. ariyj; vestments for,v a portion of the • MAniaitf - Miiuittr''Plfcrfnirr
time
be
held
in the''Insurm>ce-!:
trust funds and pension accounts,1 A6HJI
Jy RllTvlf ralfllWa
Fund. Obviously this amendment^committed 1„ their .care,,,.
'
will be of incalculable, benefit to •
There are other ways tin -which>" >■ ®"ljWl,"! ™|W ,BMP« J"
the
whole future of the entire.

at reasonable rates.

True,

United States

*hereial ti^nks cap be helpful in
financing the; pending , replacen^nt program. However the fact
still remains that as a ship is es-^
sentmlly a long term investment
an
eraf e0- con(i1J1IfK
SJ
^
years, the bulk
of the financing problem is also
essentially of a long term nature;
As already pomtedout, such .long

obligations

remained unavailable to prospec¬

chaotic.

Treasury
for
whatever
funds may be required to meet all

And of course
Maritime Admin¬
istration ship mortgages at 3%%

scribed

States

producing any sub¬
amount of ship financing

stantial

*'■ *

financial

interested

immediate

ineffective in

shipping on any substantial
can
only properly be de-

Insurance '

law, in effect, gives the Maritime
Administration
a
perpetual and

general this 90% Govern¬
guarantee on loans proved

ment

"■/'

opened up

Aug. 26,; 1958 holding that
- guaranteed
obliga?
tions issued under the, provisions

Congress—at the strong
of both the' ship owners

the

signed

But in

plans for
American

ago

years

financing

of special fund

stocks.

common

by
to

Government

banking institutions — acted with
promptness and dispatch.' PublicLaw 520 Was enacted
and duly

50% of subsidized operator's statutory reserve
in diversified

Assured

appear

dated

Again
behest

purchase of bonds and acting as trustee for loans and bond
when more than a single lender is involved, and by
can

Fully

and

issues

P, L. 637 which allows banks to be trustees

now

the Currency of the

same

;

insured merchant marine bonds

that

■

XI bonds

Title

of-the ways; in which com->

some

by the re.
of the Comptroller of

been

cent ruling

was

might not arise from time to time
in the future.
" % •
; 1 "
.

long-term

commercial banks

Government-guar-r

anteed

opened up to commercial banking in the financing
of the American flag replacement program are reviewed by
Mr, Azoy. After remarking on the complete change from
chaotic financing conditions of three years ago to spectacular
results achieved in past two years, the New York banker
New

by the subsidized operator^ jointly with their bankers. ^';;
I have attempted to outline

Also, several interesting possi-bilities for the future acquisition

a very

proper

entire

the

and could

in accordance

with the terms of the statute. This

By GEOFFREY V. AZOY*

industry

highly, desirable element Qf
flexibility iri setting up long term
ship financing programs.
^.

made' promptly

the bondholders

full

enable

and

business

before sufficient monies had been

^accumulated in the Insurance.Re-:

the

to the intrinsic worth of the Gov-:^ as corporate trustee for Title XI
ernment guarantee.
lqails and bond issues where more**"
;;
for the financing pro¬
than a single lender, is involved.
Of course there are various al¬
Geoffrey V. Azoy
American op-,
gram really to get off the ground
These duties are very! exacting—
ternative avenues of investment
orators
had
<•
.V.*•'. V
by
increasing
the
Government
available for ship financing.^'Jn - particularly in; the. caseiof a1 pub¬
raised a limited amount of cash guarantees to the full 100%
of
lic
offering such Yas. tbe- recent
addition to Government-guaranthrough the public offering of the covered loan or mortgage. The
Grace Line bonds—^since-the trus-.common
results which have developed in teed|loans, under proper circum-.Y
stock, while one large
tee in effect acts as the four-way
stances limited amounts of. cap¬
subsidized company had financed the intervening two years were
stake holder between .the bond¬
ital
can
probably bet raised atthe conversion of two combination spectacular.
higher cost through conventional- holders, the borrowing steamship
Of course, as is always the case
passenger-cargo vessels by a pri¬
company, the investment bankers,
vate sale of long term bonds se¬ in
any
radically new venture, non-insurfc£ loans and mortgages,' underwriting the bonds and thej
while./in certain cases it may ,be
cured under the 90% Government everything didn't work out quite
felt dtsirable to resort to the sale Maritime Administration. ; ; As a'
Mortgage Insurance then in effect. according to Hoyle and a tempo¬
matter of fact, undeh the provi¬
of common stock.
However, as a
rary crisis arose in the case £>f the
commercial banker, it is my in->: sions, of the applicable.-statute the
*An address by Mr. Azoy before the
late lamented "Carib Queen" de¬
Annual Convention of the Propeller Club
tention to limit myy remarks tot! trustee, joins with, the borrowing
fault
which
brokerage
firm*: of
Hemphill,
unfortunately
oc¬
«f
the
United
States,
San
Francisco,
corporation in preparing, signing
the various roles which commer¬
curred in the latter part of 1957
Noyes & Co., 15 Broad Street,
Calif.
cial banks can play in directly as- - and submitting the formal Appli¬
New York City. The firm,, merpcation to Insure to the Maritime
sisting the replacement program
bers of the New York Stock Ex¬
Administration and is responsible,
under the provisions of Title XI.
change and other principal stock
to
the * bondholdersT-to vsee
that,
and commodity exchanges, has 26
their interests are
Role of Banks Under Title XI

least

Administration

Maritime

two

—<

made

it possible

tected

Commercial banks, by : the very
nature of their business- are re-

defaults

adequately pro¬
and that no
under the terms of

occur

either the mortgage indenture or
a rather high
degree of liquidity in their assets-• the, applicable .provision of the
to
meet
promptly all probable law.All this, of cpuTse .demands
withdrawals of their demand de- ; a. high standard ..of competence
posits.
They must of necessityf and reliability, on .'the part" of the

"quired to maintain

Reports
Mail

your

INTERIM

limit

look

reports,

them for information

when

year

well

as.

annual

your

role
on

your company

planning purchases

throughout

every

country,

metal stencil in

the

arranged

our

alphabetically
by firm

names.

States

list

for

addressing

(United States

approximately

9,000

names

envelopes

Canada)
in

and

Cities,

for

$7.00

United

the most

you

the

per

also

supply the list

small additional

charge.

complete

States,

900

which

institution

acting

now

•

represent is
trustee of the first

public offering of Governmentguaranteed ship mortgage bonds
the financing of ' ever made, and "for-the. past sev-

commercial

banks

di¬

floor
partner
in
the firm of
Emanuel, Deetjen & Co.
He will
act in a similar capacity for IJemp-

hill, Noyes. In early 1949 he be¬
came a member of the Exchange
and established the firm of H. J.
Kenny
solved

Co.,. which was dis¬
when he -entered

&
in

1953

Emanuel, Deetjen. Mr.. Kenny left
college in 1942 to join the U, S.
Army Air Foree. He served' as. a

lenders

American

vessels

gummed roll

labels

■

...

•

New York 7

Under

75%

depreciated'' fied list of comrnoa stocks through
formula, it .* the medium of special trust funds
should be possible for steamship / established
with
an
approved
owners faced with the problem of' bank or trust
company as trustee.
-proceeding with the construction The purpose back of. this particnew

this

vessels at

time of

rela- ; ular

legislation, is to .try to protively high long term money rates,';. vide a hedge against the expected
to arrange temporary short term
continuing long- term, increase in

REctor 2-9570

value.

loans with their banks in th,e hope

the

being able to effect permanent
long term financing at lower rates
at some point during the ensuing
five years and prior to the final*"
maturity of their bank loan. This v
,* constitutes a type d interest rate
hedging frequently used by bor-"
.

& Co., members of the
Stock Exchange, as a
522
Mr.

New York

registered

their office at
Fifth Avenue, New York City.
Batsu is qualified to service

representative

inquiries by phone or
in
Greek, French, Italian, Albanian,
Rumanian or English.
.

the

^ Perhaps I

£eserve/funds, iiCa diversi¬

thousand—

HERBERT D. SEIBERT & CO., INC.
25 Park Place

selected.;

Hanunill

can

percentage of their
this reason, the

assets. * For

speak with more .ibari usual fer¬
vor, on
this matter' because the

■

Canada.

limited
of

institution

•

up-to-the-minute service available.

charge

loans; to

Addressograph,'Department

This list is revised
continuously and offers

Our

their

the country. :

■

investment banking and brokerage firm in the

and within the Cities

across

Kenny resigned on Oct, 31
the New York Stock Exchange

Mr.

pilot on 30 missions in the Etjroflag ship- replace- i eral months I have been rather pean; Theatre and was discharged
c a p t a i n, after
twice being
ment program will probably be*- constantly involved with an inw a
awarded the Distinguished Flying
limited
largely to
construction pressive battery of legal talent
Cross.
•'t'
loans and, in appropriate situa-V representing the 'borrowing com¬
Mr. Kuver has been with Hemp¬
tions, to the earlier maturities of; pany- the bond- underwriters, the
long term serial mortgage notes Malitime-Adm inisfratidn—"as well hill, : Noyes since 1952i.. He had
been
the
firm's office manager
or
bonds
issued to pay off the " as our ovvri-attorneys.
;.,
and had been active in the syndiconstruction financing on the com-'
Another
contribution,
which cate - department. ■ From 1928 to
pletion and documentation of the.
cpmmeic^l-banks eari^make to ^952 he was employed by the New
new vessel.
~
•
financing the replacement pro- York Stock. Exchange and worked
Such
four
or. five-year'bank ;
feimit
the provinioi)3
numerous
committees and
loans can become of increasing' of .Pubhc
;Law the pa^ed in the deDartments
637 last Congress
importance to ship owners in thir final, week ot
~
event the next or any future Conand subsequently signed by the
•
gress should enact legislaticm nqw%
President,^\Yhpreby fl\e,subsidized J With Shearson,
pending authorizing the applica- ' operators are permitted., in effect
Traian V. Batsu has become as¬
tion of Title XI loans and
mort-1 to invest up to 50 %^ of their stat¬
sociated with Shearson, Hammill
gages
to
previously Completed / utory
rect

for their portfolios,-

SERVICE

for

total

Investors

ADRHESSOGRAPH

We have

bulk

comparatively short maturities—
usually not exceeding five years
and even then only with respect

report, to the Investment houses of the Country.

the

offices

„all times

rowers

various other fields of
.

price level,-and*to. maintain
purchasing, pow«r of the Con¬
struction, Reserve. Fund in some
equality withThe probable steady
upward trend ,= in ship building
costs.

Thia constitutes,

new

and

Two With Morrison
(Special to The Financial Chronicle>

CHARLOTTE,
Underdown

and

C.^-Jack A.

Claude G. Y^tes

somewhat

have become connected

the

rison

revolutionary aspect of
Merchant" Marine Act which

certainly

deserves

careful

study

and

Building.

with Mor¬

Company, Liberty Life
-

Number 5794

Volume 188

The Commercial and .Financial ChrOnicte

i AN^liH^shftred. "in-

London. The anticipa^vlibn^ ot}- inflation * in : the United

Loewi & Go.

Siate§ has lead to the conclusion

tr:

that. Britain would now be in a
::rtK)sition tn inflate with impunity,
^beciause if American priced rise

By PAULtlNZlG^

?- ^■:

Loewi, President of Loewi & Co.

trend of British

225
East
Mason
Street, members of the New York

Incorporated,
Stock

Before pointing: tbid

Dr.
Einzigcriticizes theBritish Government for improperly credit*

MILWAUKEE, Wis.—Jj Victor

receafAiaerfcriWe^

British reaction to

inducement to resist inflation.

•...T!?'

Carter & Risk

Ai.

.«

from drop in IhrteO Ot
imports. The Writer finds i (l) tabor his Wbo 'a 'de&iye
I*
victory over employers and tbe GoTerament{ (2) diiinflation
ary drive cut production but not Wag# rise uo# Matron if the
faN In raw material price is considered; (3) Keynesian con¬
cept of manipulating public works has proven to he unsound

the '

i il \ A
^ -1 ,u
;therefore less inducement for the

Exchange,

has

appointment1 of

Cartel

and-

Donald

announced
Thomas L.
T,

Risk

organization earlier this year. Mr.
Carter whs most recently associ¬
ated with Robert W. Baird &

Co.,

and

previously

western

Government to resist inflation,

i V

; „\;

John

Risk, ..of Loewi & Co.'s re¬
Nov.
department, is a graduate

Vale Law'School and Prince¬

Ball, Burge Firm

i^spedisil

•,.*.

to The FinancialChronicu:)

+ vv*

-v-

...

ton

Insurance

C. B. CoOk passed away

predecessor,

•'.•>

North¬

9 at the age of 64. Mr. Cook
had been associated for many years
with Whitehouse & Co. in New

University, and joined Loewi York
City and its
Cp« Incorporated in 1956, Pre¬ Hendrickson
A CO.
f; i, CLEVELAND, Ohio—Joseph K. viously Mr. Risk was an attorney
Crabbe is how connected with for the Rail-Trailer Company, and

•

the

John C. B. Cdok

Assistant Vice-Presidents.
Mr.

with

Mutual" Life

Co., both Qf Milwaukee.

-,-i

I-

"^ ^^

i
inflation When much of the credit stem?

payment and the posi-

'
*

municipal pond department, fe %
graduate of theUniversity bf
Notre Dame. He joined the LoeWi

Appoints

Doughs G% Wagner

associated with - the law firm
Douglas G. Wagher, partner in
Hopkins, Sutter, Wells, De- Charles A. Kahl
ft Co., New York
Wolfe arid Owen, both of Chicago.
City, passed away Nov. 7 at the
Mr.
tarter, Manager of the age of 67.
was,

York and Mldwest stock

,»r™«,»Hc,i.l*r.Hnf
jr;..:

;,t..

r..„

...

.<-

.Exchanges.

, -...

I^NDfONj Eng.—During;the dd- ! changes is ^ela^r . and
abate that /followed the opening'of 'tkm entailing -• Wasteful "incrbasfe'^^^^^
the new Parliamentary Session, * of expenditures The
db^od&tc^^BBpil^P

•

the- Government
credit for hav-

ing

rightly

works

ened sterling
♦by"means of

qrdjfal..S.'|f^
;Art

eqhaii^- sincnig

made1

case is

against /interfering with priin the';"
future
Chancellors of the - Ex¬
chequer who seek to discourage
capital expenditure
industries;
out

its drastic dis-

BY PUN 111

vale investiiient programsv-

inflationary

is that in 'TuttiiV^.phbltt.^8^^™
should be• spated similar

claimed 'elusion

•

strength-'MMmmM''

But

measures.
,a
:
•

large

pro-

portion of the
credit Was due

.to the

^areydiablb^^ criticized/ iriiuch f ^

changes

in the terms Of

trade

caused

disinflationary

-raw material

When

''ti°ns
T

^he; do-

A1®. Government is

prices
most

tT*6?e> +lVe
?e
1
ln
slowed down.and came al«i

gov-;

their^

Products mix. v; a broad diversiricatiOn

'con;-V'/$j

research, development arid
»'
production
is the key to TemcO'fl
continuing progress. For. Temco ig
keyed to the needs of today's complex
and rapidly changing spice age.
It's an kge where Airffrime poundage
is decreasing while demands from

and ribt, on investment. "**
Disinflation by rheans pf 'irestric-

111

ofi
fhArJ

rurts,

efforts

"sumptioh

5FT8 r°fh6
etieet
oi the

in. the J past.,

argument

Crnments should concentrate

by the fail in
.prices.

sharply than

\Sureiy, the

This

standstill.

was,

howevef, overwhelmingly due to

consumption

also; rin^,;

counters, however, growing eritirl
c|sm.
The government has just
removed most controls on install-?

meitt credits arid their restoration;;
of need Is likely to prove .

difficult arid unpopular.
...

'
.

electronic arid missile fields

^ that^is left-fpr y the longsuffering Chancellor. of the |x-iT

imported

increasing.. where

chequer is to try to, control a

•raw materials and food stuffs. Do-

consumption by. means of time-,,
honorea monetary devices. ^Ct ;
even these -deviCe^haye^cOm^Oi c
looked, Uiym ^
pecbn^.

the

Iii

fall

the

cost

MneStic costs of production continued to rise. Admittedly, the rise
inHvages in 1958 Was slightly less

emphasis is being placed

•

suCh

circumstances

hoV

On balance, the result of the government is likely to resbrt to
disinflationary drive was disap- any disinflationary means unless
•pointing. By succeeding in repeat- it »is compelled to do so by a bat-

edly obtaining wage increases even
-during the period of the disinfla-

tioriary

drive,

the

trade unions
have Won a decisive victory over
-the .employers, oyer the Government and, indeed, over the rest
of the community. It has become
arguable; afld it haS actually been
-argued already, that in existing
.conditions
the
disinflationary
drive has proved to be ineffective

of payments crisis. To a
large extent this was already so
throughout the postwar .period
but in the light of the experience
of 1958 it Will be even more so
ance

•

feet in the

J•

against $1.02
comparable period.

for last year's

■*-.

-•

Reaction to American ElectionAlthough

as a source

by Vlom

Temco is growing steadily..

of prime weapons

systems and components and as the
nation's most efficient sub-contractor

crease

domestic

to-cut down

for the nine months, as
•

J.J-

^; 4

over

in the future,
~

$1,740,000 to
=
the same period of
1957. Earnings per share were $1.08

$1,841,000

Sphere Was r e s e n t m e n t among industrial:
production without workers. Politically it is becomchecking Wage increases. ,ing increasingly difficult for the/
•.
government to pursue a policy ;
Keyncg RfoVCd Wrong
! that would tolerate even a modest '
•

is shown.. from

in Britain the inin
unemployment - was '
much less pronounced than in the \
In checking inflation; Its sole ef- United States; it aroused strong '

•

* '

up over mid-year, 1957. Now, for the
three-quarters ended September 30,
1958.. Temco's net earnings are up
again. A healthy increase of 6%

tion.

•

At mid-year, Temco's net income Whs

wholO

changing not only the type of

•

Labors Decisive Victory

equipment supplied by the contraOtOT,
but the way his business is managed.

the previous

year, feveri
so, it is impossible to claim that"
;this slight restraint in wage infla,

are

enlarging

systems of weapons. All of which is

discredited;; .An :the dight ^of the
experience of^1958.
viewrh^,
gained ground that Since high ,.
tion was an adequate compensd- bank rate and the Credit squeeze ;
tion for the drastic Setback in pro- have proved to be incapable of M
due tion, - and- for "the* increase in checking
Wage
increases,', i the t ^
unemployment.
"
v
V Oi tU^uox policy tenaS to reduce p
;
production rather than consump- ,|

;than in

Nine Months Erided

(rtCOrttd.

Net Sales and Other

„

Deduct:

SeptemberJO
iSSt

1SS8

HIGHLIGHTS

TEMCO

.......

$89,606,658 $89,738,740

systems organization has
the new "team"

met the demands of

concept in procurement, with Temco

and overhaul organisation. Temco's
weapons

One of
•

the conciusioris that has

degree of unemployment, A "de-

emerged from- recent experience - pression Scare" was worked -lip in
is that it, is entirely wrong to Britain by the trade Unions and

"sacrifice the future for the
ent

pres-

by concentrating disinflationary drives on the production of
; capital goods, It is -argued con-

the Socialist Party and foolishly ,
enough- the government played
their game by its frequent expression
of official pessimism. ■
^e and more people - are in- •
clined to take the view- that, cornPared: with the danger of-a slump, even creeping inflation is a tolerable evil, This view is of course,
based on the' unfounded fears
that as a result of resistance tp -t
inflation the conditions prevail- <t
inS in .the. Thirties might ;be J

Cost (rf Sales

•

Research' and development costs

....

■

$80,561,973

...

•

' 2,699,358

3,724,930

and

many-faceted weapons systems.

Pro»isron for Federal taxes on income

...

•

2,120,768

1,873,568

General and administrative expenses

•

1,287,637

manager

....

member of the team

1,155,320

Interest
""

of the "Cprvus" system
on other

$81,156,884

•

,501,099

682,823

that the Keynesian idea
Of running' the. economy by exc
r.'
banding arid - contracting capital
investment by the public section
.ot the .economy; has proved to be
:thoroughly unsound.
Urgently
r.
heeded capital expenditure, such
■
as the building Of roads, the modWrite lor your copy of
;Crnizatidn of railways, the development
of nuclear power -for brought back.
- .4
temco's 1858 Nine Months';
peaceful purposes, the building of
Gpponents or inflation' in Bri- {
Report Also available, on
.hospitals" and .schools, ^ etc.",-had to tain suffered a Severe' blow as a '•
'J request.. teMcO's 1§57'
-be interrupted-for the Sake Of result'of the outcome of the'Conj
r- Anhual
Report. Write
cutting dOwiT investment" ht order - gression elections in- the United "»
: to check-inflation.1
': /' —»■^ ; -States. The interpretation of-Wall [\"\
.
Department CM
Many of the interrupted public - Street that- the flood gates have rj
works projects arenoW being ffi- iibw been dpeiiEd for reflatibnafy i:'
■-•!
Digitized Burned, The net - result of ^ the * government expenditure is widely1
for FRASER
; Vincingly

•'•••<

$87,998,715

TOTAL $87,765.746
A

$ 1,740,025

NET INCOME * 1,840,912

Thus Temco is

developing its

;

pressing forward in

own

prime products as
major

it broadens its position as a

sub-contractor to the defense

industry.

Temco is, in fact, one of America's

promising growth companies
^

X-

■"-/

with the aggressiveness, capabilities,

experience and facilities to expand

with

our own

expanding world.

•

.IH
P. d. BOX 6191 • DALLAS 22, TKXAS

The Commercial and Financial Chronicle

(1996)

Who's Abaid of Gold and Why
—And a free Gold Market?
By REID TAYLOR*

111.

Mitchell, Hutchins & Co., Chicago,

forward to completion of plans
now being formulated to open under private auspices a com¬
pletely free market for gold in Canada. The man in the street
Chicago stock broker looks

is said

with the mint

unable to

price for gold so that he is

see

clearly

been

interest

has

and

money

because

almost

gold

aroused

time

shy
from
the subject.
One
day
I
was talking to
director

one

before seen.

our

It is not reason¬

There

procedures.

fantastic

such

"Oh,"
exclaimed,

don't

mankind has never

...

structure

banks.

and

expect that our currency
and the value of our
dollar are not affected adversely
able

out

put

of national madness the

of which

the

limit to

abuse

want to think

which gold can be subjected."
As one reads along he almost

about

gold.""

begins to rejoice, thinking, well,

Arid

even

goes.

con¬

cerns

the well

being

Reid

together

get

can

and, work together for the com¬
mon
objective—a sound dollar.
But then the writer reverts back

Al¬

though it

last

now

lav lot

obsession

the

that

must not

whatsover.

actually

believe

that

gentleman if he believed in
the Federal deposit insurance for

has

already

bank

ously

dollar

He insists

be devalued.

and child, his
future
security and happiness,
very
few give \it any thought

every man, woman,

When

asked

the

same

felt

accounts,
that

and if he really

price

the

that

gold

must re¬
Can he

main at $35 to the ounce.

not

de-valued

further

effect been
and
continu¬

the past

over

dollar

the

10 or 15

years?
about the limit of "national mad¬

with

ness?"

the

Federal

for reserves, he

These

course.

necessary

banks

Reserve

replied, "why of
both- for

are

the

Haven't

already experienced

Hasn't

gold already

"abused"

with

been

dollar

the

dragged down along
in buying power

protection of the depositor. One io the point where the two must
complements the other. You could part company, and the gold break
hardly have such an insurance of away from its tie?
deposits if you- didn't have the
Jf gold is the standard why can't
reserve
we
trust it in a free market to
requirements, ; If
you
didn't have the reserve require¬ show ms the way back to a re¬
ments you would certainly have' deemable dollar?
Are we afraid
some
loose banking."'"Well," I of the truth? No doubt this would
said, "By what strange logic is the mean a higher price for gold in
guarantee of the return of the terms
of
our
paper
money
number of dollars to the de¬

same

positor important if there is no
quarantee of the value of the dol¬
lars to be returned? Why isn't it
just as important that the govern¬
ment'be required to set aside re¬
of

gold to make the
it is important for

serves

good,
to

as
set aside

reserves

money
a

bank

possible
price to
has

geon
for

and

then

Free Market

Again my thinking on this sub¬
ject of gold and money has been
stimulated
by
an
organization
which

think

crusade

for

sincere

sound

money.

spokesman for this group
fear

free

market

its

The

seems

for

gold as
a first step to determine the true
value of our dollar. As I see it,
a

this group is giving aid and com¬
fort to those who oppose a return
to gold in that they still consider

the paper dollar to be tied to gold
and therefore to be the standard
of value.

They insist that the dol¬

lar shouldbe made convertible into

gold at $35 to the ounce. All well,
good if this could be done.
The American people might well
recover
their gold again and at
and

least
and
to

would

secure

safe

hands

from being drawn off

foreign shores. But it seems to
this is very unrealistic in light

of the fact that the dollar has had

♦An address
American

cisco,

Taylor before the
Congress, San Fran¬

by Mr.

Mining:

Calif.

dun¬

reasonable basis could

determined for

return

Cites Civil War

Precedent

is ample precedent for
procedure. We were faced
similar problem after the
Civil War when the greenbacks
were issued.
Did John Sherman,
who was then Secretary of the
Treasury, abhor the thought of
gold going up in price in terms of
greenbacks? Did he yield to the
great hue and cry that only the
speculators and the gold miner's
would profit by a free market?
No, he knew the only honest;
money was money redeemable in
gold. He recognized the necessity
of a free gold market to reveal
There
a

with

the

truth

v
bulletin

rubber

bank

the

all

arguments were
higher price for
gold would be inflationary and
unthinkable.
Only
the
greedy
speculators and the just as greedy
gold miners would be the gainers.
Russia with her presumed great
production of gold would unload
on
us. We would only
be helping
her, so we had better not raise the
stamp

out.

price.

mention

made

was

the

necessity of getting back to gold,
to establish the true value of

our

made

which

multi-lateral

and

result

would

full

it1 any

the man

wonder

the street is confused when those

he would naturally look

guidance

either confused

are

which

statements

issue

about

irredeemable

Now

planting
will

was

the

confusion

this

men's minds

that

occurs

not by accident.

the

remember

philos¬

stated and admitted by
planners some years
back, "spend and spend, tax and
tax, elect and elect." The schemers
who set out to change our form
ophy

the

government recognized that in
to fasten their grip on this

order

useless

"near

have

commodity"

recently been told again in

article in the "Commercial and

Financial

Chronicle."1

circulate'

Its

home to the
make

free

would

rise

bring

the street and

man on

real the fact that what

his

government spent was really
being slyly deducted not only
from

hut

the
far

from

dollars he earns,
tragically, stolen

paper
more

the

sayings he might have

inherited,

that

accumulated

his

for

may

old

age

have
and

those who live after him.

The

curtain

raising

which

perform¬

tie

between

the

dollar

will

in 1933,

confidence returned this
narrowed.

premium

When the date

was

fi¬

nally set for resumption of specie
payments the premium had dis¬
appeared
entirely and no one
presented any paper money for
gold.
To the farsightedness of
.

such

men

John Sherman,

suc¬

time

condition

accus¬

in war-time.

las

wel

and

Federal

the

Reserve

for every one to read.
few people even bother to
figures. Yet in such

Very

reports, uninteresting in them¬
selves,
if followed
week after
week,

there

which

may

lines

and

one.

the

unfolded

are

the

trends

be tomorrow's head¬
concern

every¬

■

Such, I believe, is the

money volume of
much based on that

that

Treasury

the

System

$300 billion, a
almost

carry reports

papers

look at these

approaching

debt

government

case

with

continual withdrawal of gold

by foreigners week after week for
six months. This is more
gold than we have lost in any
full year up until now. This oc¬
on the street.
A dollar is a dollar
currence
is played down by our
even
though it will buy only, a
fraction
of
what it
would for¬ officials, as is the persistent de¬
cline in government bonds.
The
merly. But there is one thing that
he is sure of in his little mind.; two, no doubts have a very real
connection.. Foreign holdings of
The price of gold
must not be
our bonds have been under liqui¬
changed again.
I use the word
dation.
Moreover,; when foreign
"little" guardedly because 1 am

debt, an overall public and pri¬
debt approaching a trillion,
all this means nothing to the man

the past

vate

filled

with

when

awe

by-

sound

mentioned

May I

fear

the

all

dollar

and

gold

tie

six

gold loss

can

the sys¬

credit

total

used

present.

But all that was an¬

facil¬

potential of
from $35 to $40 billion.
It is be¬
side the point that these central
bank credit facilities are pot being

and

sorrow.

such

times,

be said to eliminate from
tem

between

their

gold

credit

bank

ities,
when
used
by
member
banks, can be expanded five or

some

and

bank

central

Since

the

its influ¬
on
the price structure was
psychological than real, as
speculators found out to

ence

central

purposes

market

actual

loss

facilities -of the
by $6,800 million.

credit

potential

The government

intents

year's

this

Thus,

sue.

$1,700 million in gold reduces the

now,

intentions

re¬

ability of those banks
loan money,' Again, and not to

infla¬

it aroused

future

the

was

not

was

authorities.

there

the

itself

except

the

disregarded,
under
present
regulations the Federal Reserve is
required to maintain a gold cer¬
tificate reserve equal to 25% of
the reserves which member banks
have turned over to it, plus any
Federal Reserve notes it may is¬

money

right here and

say

act

deposits

and
in
practically
everything he reads, that it must
not
happen
again
because
it
would be inflationary.
that

drawn

are

bank

like amount and this

stricts

crusaders,

tionary

gold,

shrink

by bankers, by economists, *
investment services, by the

above

down

accomplishments along other
lines, in electronics and atomic
energy, and know that it is away
beyond my comprehension.
But
when it comes to money, he sim¬
ply throws up higjian^s^ewill
not try to think .through simple

told

credits

short-term

realize

his

losses

such

continue,

and

there seems to be every reason

to
will, we may see very
- tight money.- The remedies which
are so confidently applied by our
think they

ticipated by that abortive thrust money managers when our econ¬
in our markets, has since become omy is in fair equilibrium as at
may
turn
out to
be
a reality, not through
raising the ' present,
price of gold but through the wholly inadequate. The flexibil¬
carrying out of that plan "to ity of the reserve system will be

basis.

gold sold as high as
$50 an ounce, or almost 2V2 times
the former conversion price.
As

daily

the

was

severing

opened and

there

prosperity until their
purposes were accomplished. Gold
must
be
completely eliminated
from the scene. After all, it is a

the

was

became

Our

when

there would be an illu¬

way

forget;

market

this

lated wealth of the American peo¬

was

free

also

price

that

ple without their being too con¬
scious of what was going on.
In

ever

to redeem your

They want gold, instead
depreciating dollar.

spend, tax and tax,' reduced with every gold loss, with
elect," not only what * the end result that requirements
was
anticipated
but
I
suspect for this gold backing will inevi¬
tably be relaxed and confidence
more than was anticipated at that
time.
Do
you
remember how in the value of money further im¬
shocked
we
were
under
WPA • paired.
'
...
./;
/;

nation they must devise

great

method to spend the past accumu¬

ance

gold

Thanks to us, for¬

by day.
of a

tomed to bigger and bigger gov¬
ernment, higher and higher taxes,
bigger and bigger budgets, a WPA
that gradually grew into a world
WPA, war and more war, hot or
cold it makes little difference, the
.spending goes up and up in peace¬

had

Confusion

He recognized the

money.

cornered

Planting

Deliberately

function of gold to guide the na¬
tion back to a sound
currency

paper

not allowed

our

one

own
productive capacities enor¬
mously. Their reason for wanting
our
products is evaporating day

other price.

are

completely misleading?

You

eign nations have increased their

was

dollars

the

worth

was

that an ounce of
worth $35 instead of

$20.67, as formerly, even though
you couldn't prove it because you
were

out of

dollar

the

other words,

any

being priced

are

of its former value, or

only 59%

gold

are

world market.

processes,All he can remember

currenices gen¬
erally throughout the world was
restored through the great com¬
mon
denominator and only uni¬
versal money—gold.

steel and machine
gold.
But now the
weighted the other way.

not

—

scales

grew

acquiring

tools

accustomed to this

that

passed

years

Is that jjpitial curtain raising per¬
formance of 1933 and 1934.
He is

convertibility

for

the
and

idea

No mention was

international

trade

As
more

of the tremendous stimulus

and for all.

once

our

confidence in it
storehouse of value, stabilize
economy, and stop inflation
restore

money,

sion of great

convertibility.

such
a

down

been

meet the

demands of its depositors." There
was no answer.
He walked away.

Those Opposing

drastically higher
begin with because

and tied
to
a
sick dollar
long. But this would all

pass

was

—,

this

to whom

that
member
banks place
a
certain
percentage of their deposits up
was

bulletin

this

pages

someone

time.":'

is "a mani¬

writer,

the

quote

festation

coming out to
state the facts. This, I tried to do
in two articles published at the

by this organization it is admitted
I

away

this

and

from that day to this. There has
never
been any real tie to gold
even at $35 to the ounce.

trying to justify
the paper
dollar with its hair¬
spring tie to gold as the standard
of value.
I decided it was high
11

trotted

program,

this

completely

stand

writer

The

spent

hair-spring tie to

that our give-away

everyone
seems

than

^old for 25 years.
In
a
recent buelletin

gold
to

Evidently

where my blood really started to

boil.

In
no

it.

this

reversed

permitted and we did not return to gold standard
narrowed and disappeared by the time the
date set previously for resumption occurred.
The author
denies a higher price "would be inflationary" or "would help
Russia/' and claims our gold outflow is due to foreign prefer¬
ence for gold to United States dollars.
broker. I
economist.

the

benefits

the

bulletin

subsequent

was

I
am
just a stock
don't pretend to be an

extolled

and
from

article had been unauthorized.

until the premium

banit

had

standard

for a free gold market as a necessary prelude
to a redeemable gold standard. Mr. Reid refers to the precedent
set to have been made during the Civil War when a free market
gold

director who
shied away from the subject of
gold entirely, to the sound money
group who fear a free gold mar¬
ket, my interest was finally di¬
rected several years ago to
the
complete turnabout executed in
the monthly bulletins of one of
our
leading banks.
A previous
the

From

article

the arguments

;

derived

for not tampering

be bombarded with arguments

ceeding generations owed a: debt
lasting gratitude.
,

Thursday, November 13, 1958

...

one

man

of the

and

gold

the seizure of all gold, the
prohibition of all trading in gold,
and finally after the government
had a virtual corner, on gold, the
bidding-up of the price with the
avowed and well

of de-valuing the dollar to
raise the price structure—1 say
was

calculated to confuse the

entire gold issue in
1 An

1958,

article

page

Rene
.

and

world

men's minds
Leon,

Aug.

14,

got
a

aired

around

that

plan under foot for a

WPA?

one

would

be-

authorities

not

enough

our
foolish

should

her

to realities.
now we

have been able

to maintain the fiction of the

able

Russia

food for thought.

will

Pos¬

people properly. But^ieht or
she chose the course of

in order to live,

maintain

the

ap¬

relative to

our own,

give-away, and
great productive capacity.

However, the idea of
build-up of an enormous gold

lished fact.
the

production within her borders is
more
questionable. Try to trace
the source of her production fig¬
ures and you get nowhere,
Little
if any more than what she stole
from Spain in the 30's has ever
actually appeared in the world

gold, to the weakness of foreign
fantastic

So now,

she must unload

output on the outside world.
This much we know is an estab¬

her

inance, our ownership of over half
the
world's
monetary stock of

our

that

intense industrialization.

$35

parent value of our dollar in the
world market. This, of course, has
been due to our position of dom¬

currencies

fear

wrong,

price, or in other words, we have

our

recently

our

This

and sadly so, because it is
throwing the American people off
their guard and is blinding every¬

been

has

sibly. she would have been wiser
to have expanded and developed
her farms so that she could feed

pose,

Up to

•

gold at the present low
price rather than that she -will sell
us
gold if the price is raised.
buy

such an act as raising the
price of- gold again arbitrarily.
That act served its purpose at the
time and is still serving that pur¬
pull

one

-Cortney

made the statement that what we

certainly

No,
would

Quotes Philip Cortaey

Philip

lieve it.

market.

Being Priced

advertised pur¬

pose

this

spend

elect

Out of the

Now let's take one more

World Market

With

about

population

of the world's

have accounted for

one-half of the world's total out-*'

It is plain enough that any
foreign nation with dollar credits
has up until now, been interested

put.

step

along this

Doesn't
.

the

line

smart

logical

of ^thought.

trader ki

any

commodity talk prices down when
he wants to buy? Doesn't he talk
the

price

Russia

if he wants to sell?

smart as .we give
being and she wants

her credit for

Volume

Number 5794

188

The Commercial and Financial Chronicle

acquire gold, what would she
- Wouldn't
she build up this
idea of her big gold production
do?

world

pale

parison.

•

of value.

our

She

economy.

must

Group Elects

Her

PITTSBURGH,

Pa. — At the
Meeting of the Western
Pennsylvania Group of the In¬

know

Association

Bankers

vestment

I-have

agents are fast at work night and
day. to spread her gospel of con¬
another

they put words into the
our officials, our bank¬

challenge

our

with¬
higher

that:"A

has

lost

never

inconvertible paper

only

inconvertible

understandable

Such

gold market;
it

is the

difficult

how

group

under¬

who

men

crusading for the gold stand¬

are

afraid

stand¬

of that

ard

can

ard

and

prefer to go along with

the vagaries of an arbitrary value
set on gold which has permitted
such an inflationary binge as wc
have experienced over

the last 25

years.

However, the world market for

•

gold is far too broad for any one
country to control for long. And,

spite of what some men think

price:Should be, it is becom¬

the

ing-more apparent every day that
Gresham's law, thwarted for so
long within this country, is about
to
break
those
barriers.
Bad

will drive good money out
circulation, if allowed, or out
the country, and this is being

big enough
to
recognize that this means a
higher price for gold, or will they

accumulated

try's

stock

our

confiscate

continue

gold

brings

gold
a

the

wealth

coun¬

until

General

much

ideology
without so

the firing of one of those

worrying
for
I

But

out

war-heads

atomic

Plan

won

are

Free

think

not

this

is the

one

who

those
ment

day
are

with gratitude to
at this very mo¬

planning to open under pri¬

auspices a completely free
market for gold in Canada.
This
market will give the man of mod¬
erate means his first real oppor¬
vate

to buy or sell warehouse
receipts for gold in large or small
It 'is my
be

•

Partner

•

Lowrie

—

Vice-President of
Applegate & Humphrey,

complete change in our fiscal pol¬
icies, because it will reveal, once
and for all, the brutal truth about
printing press money. Again it is
my thought, that such warehouse
receipts, or those plain small bars

Nov. 10

ipST'w

public offering of Union- of South
Proceeds

from

of the

the sale

were

: ;v~

more and more

the

Ameri- and 10-year bonds, the amounts

sold.

can cars were

and interest rates

Before I,go further, let me say
that the above questions are not

it does not make economic sense
for each of them to push a hungry

gas

<■

sacri-,;

for

mileage

and

bruising

time

you

those

all

Have you

knees

your

try to get in or

modern Detroit creation?

sets

many

mine.

less

numbers

have

irate
of

simply echoing count¬

owners

car

earshot.

half

owner

the

within

come

Singer, Deane & Scribner.
Governor—Charles McK. Lynch,

Jr.,

General Partner
Lynch.

Moore,

Leonard &

The

One

dozen

who
cars

gas

buggy

across

being subject

to negotiation. None of the bonds

will be redeemable except in the
of sinking fund redemptions
of the 10-year bonds at 100%'.

case

-•

Fran* On am c

■

vpcns

following

elected

were

the

GLADSTONE, N. J.—Harry P.
Franz is engaging in a securities
business from prices in the Bank
Office Building/ He was previously with Qppenheimer ,& Co. ' /
^

Form Mutual Fund InV.

FRESNO, Calif. —Mutual Fund
investments, Inc. is conducting a
problem which securities business from offices at

European manufacturers, with an

this

insight

into

Detroit

seems

lack

the

many

things

(with

the

419 North Calaveras Street.

Offi-

although not always com- Secretary-Treasurer.

that

has

Why People Are Not Buying Cars

models

searched

has
of

manner

are

for

all

why recent
not selling.
I believe
reasons

Detroit

serve

the

Simpson, President
Emery & Company,

Robert M.

Stewart, Sales Man¬
of Moore, Leonard & Lynch.

New Walston Branch
BUFFALO, N. Y. — Walston &
c0>> jnc> has opened a branch office in the Ellicott Square Bldg.

What they arc

in the

car

to drive, and a car
house

bodies

comfortably
well-fed

make

his

headquarters

tomers

feel

Joins Shearson, Hammill
(Special to The Financial Chronicle)

PASADENA, Calif.

—

Gregory

Morris is with Shearson, Hammill

Co., 348 East Green Street.

(Special to The Financial Chronicle)

CINCINNATI, Ohio—William F.
Medick

has

become

with The Weil, Roth &

connected

Irving Co.,
Dixie Terminal Building.

because

PAGE

the back seat.

those

customers

This matter of fail¬

ing to build cars to fit people is
more serious than you may think.

/■

COST OF THESE BOOKLETS

20 cents each

1 to 199—

15 cents each

200 up
On

orders

100

more,

your*

firm's

printed on the front cover with the words
Of"

above

it without

name

will

"Compliment®

further charge.

Commercial

Chronicle

Financial

Wm. B. Dana Co., Publishers
25 Park Place, New

York 7, N. Y.

am sure

Please enter our order for
Counter Market—Where
Most

of Them Are" and

booklets of "The Over-the-

All Securities Can Be Traded and

accompanying dividend tables.

Firm Name

that any reliahle doctor..

physiology worthy of his repu¬
tation will teE you- that riding
with your knees under your chin
is a cause of fatigue, that this kind
of

BOOKLET

uncomfortable behind the

wheel, and in certain models be¬
cause
they dislike riding with
their knees under their chins in

Weil Roth Irving Adds

after sale to its tall cus¬

lost sale

our

Robert J. Levy & Co., 44 Wall civilization
produces.
Street, New York City, members
A check of dealers in the New
of the New York Stock Exchange,
England area uncovers the fact
on Dec. 31 will admit Irving B.
that one popular make of car has
Harris to partnership. Mr. Harris

Chicago.

5 to 174 Years

they think

taller

the

Have Been Paid From

producing

people ought
to want, not what they actually
want. (2) The consumer is fed up
with shoddy materials that just
don't hold up under normal driv¬
ing conditions. (3) Detroit work¬
manship,
compared with what
comes out .of Europe, is generally
slipshod and slapdash.
(4) The
high cost of living demands a less
expensive car to purchase, a more
what

CONSECUTIVE CASH DIVIDENDS

must be living

designers

in tall ivory towers, way up

fashioned

Robert Levy to Admit

will

On Which

to its poor

answer

clouds.

Inc.

ager

OVER-THE-COUNTER

gone

elected

were

1958 REVISED EDITION

brochure. All our money
into trying to keep our
running.
."

in your

two years:

Simpson

owner¬

Bank

Mellon National

William

sales record
is
as
glaringly obvious as the
chrome on its current models: (1)

Vice-Presi¬

the Executive Committee to
for

months

of the fantastic trips outlined

any

Detroit

Trust

Company.
The following

five

serve

Charles E. Halcomb, Vice-Presi¬
dent of First Boston Corp.
dent

first

ship, he said, in part, "My family
has never had the money to take

for three years:

William J. Wallace,

■

landscape.

the

same

new car

the Executive Committee to

The offering of the bonds to the
public will be made by an underwriting group headed by Dillon,

happened to his new car within

Secretary-Treasurer—W. Bruce
McConnel, Jr., General Partner of

thought/ that this will

the entering wedge to force a

South Africa filed

popular, make, pur¬
Arthurs, chased during the last dozen years, exception of one manufacturer), cers are Oliver R. Dibblee, PresiArthurs, recently responded as follows to have come to the family's rescue dent;
Mary V. Thomas, Vicea
piece of company promotional w^j1 reliable, economical, well- President, and Roxie Hagopian,

Inc.

tunity

amounts^

recently

Gradually, however, millions of
new home owners have found that
home ownership, while very much
worthwhile, costs money. They
have found, tco, that their large
families consume ever larger;
quantities of food; and that the
older children get the more expensive they become to clothe and
educate. And father and mother,
looking for ways to balance the
budget, have begun to realize that

economical

Possibly we and
those who live after us will look

Babe*

s'tSfon wagrZtgf AfteTenu-1

Market

end of the road.

back

•

much about.

Canadian

which

merating

well mean that Russia's

have

until

numbers

HHIHHIH developed,

all

Hulme,

chaotic condition of affairs may

will

;

Vice-Chairman

terms of our paper
a

United

to /the,

early in December. The offering
population increased and suburbia is expected to consist of 3, 4, 5

Apple gate,

dwindles and

fantastic price in
money? Such

•

Lestrange & Co.

allowed.
..Are our authorities

Chairman—Addison W.

money
of

years, and

American makes. Therefore,

you

til most recent

quickly, \
you really

out of

in.

stand

you

dollars

How

Wher.-J

money.

Africa

Africa bonds in the United States.

Sure, U. S. car sales soared un-

South

with the Securities and Exchange
Commission a registration state¬

Economy

every

find money redeemable
gold you find' a sane / and re-,
sponsible
government.
A
sane
C. McK. <u>u^u,
W. B. McConnel, Jr.
and
'
*
responsible government is
'
'
\
again a prerequisite to an econ¬ America held on Oct. 24, 1958,
the following slate of officers was
omy that is sound—not one built
on the shifting sands of inflation.
elected:
i
ever

Small Cars a Must in Our

;

skull

logical first step to re-/

redeemable

store

States, announced that the Union

makes one's responses slower. I
ment covering $25,000,000 princi¬
am wondering if a lot of riding in
pal amount of external loan bonds,
such a cramped fashion could ultidated Dec. 1, 1958. The proposed

yet gotten used to. cracking your

government'

Excellency, Wentzel C. du
Plessis, Ambassador for* the Union

of plugs and
points, how many mufflers and
automatic transmissions,, has your
garageman installed?
;

It;,

free gold market because,

horses under the hood?

should fear the

fears

inflated

fice

dicta-:

car

~p a p cr/

that

Read & Co. Inc. and is expected

too

and' profligate government''
verdict of a free

torial

'60s.![
"'1.

bonds would be; used ,to provide
funds for a portion of the capital
requirements of the South African
Government,;-/";,

money.

fails to go down.

money never

His

wmPerlty HaVC C°n" mately Cause circulatory problems.

disappear

in price

to go up

seems

because

autoe.

where

battler

thinking

economy

price for gold would be inflation¬
ary"—or that "a higher price for :,
gold would help Russia."
with

early

this

be repeated in our presence

Gold

from American;

for two
are driving, or '
very good reasons:
(1) In postare you
com- f
World War II America the auto
pletely fed. up
became a
necessary
means
of
with
t h
transportation to suburbia rather
gaudy, hungrythan a Sunday afternoon playmonster?
thing. (2) The only cars available

out

route home from South

really like

the

unwilling
to think public.. ;■ '
/v
I;
1 Let's never repeat or allow to'
economists,

the

you

mouths of
ers, our

been

dudedJt
mob i

is her"big
thinking. Her

One way or

homeward journey as to what will
be the deciding factor with regard

our

land.

trip comfort

ocean

Annual

silence

over our

-V

Africa,
financial publisherBabson inveighs the American automobile
industry for producing the wrong kind of a car, poor product
quality, at too high a price. Concludes deciding factor as to
1959 prosperity will be the automobile.

■

us of our gold C
this process can be hastened ma- -'

terially.

Lulled by

that by denuding

stick" to warp

roger w. babson

•

Western Pa. IBA

theory to de¬
and destroy

currency

%';r

;
"...

in with the Marxian

fusion

cars

Union of South Africa

thereon to give them the pretense

Furthermore, all this would tie

our

rash of small

;manufacturers in the

channels, ho matter what prom¬
ises, -whose' portrait^ or. whose
signature may be engraved

with her goods would
insignificance by com- :

into

bauch

fortable, transportation. 1 predict a;

Detroit's Sacred Cow

big stock of gold as a
threat overhanging the market if
we should raise the price?
Isn't
this logical? I believe she is doing
just this, expecting to make a
killing at our expense on the gold
she can take down. Any profit or
loss she might, take by flooding
the

they represent, may, as
on, -replace currencies

goes

of uncertain value in world trade

her

and

gold

time

(1097)* 2t *

positioning restricts blood cir¬

culation,

causes

numbness

and

AeW-rees

—-

.Date

The Commercial and Financial Chronicle

eg.'(1998) ^

Continued,

■/

from first page

lowing expression from President. National City- Bank of New-York; ;
Edward A. Merkie of-the "Penn^ and Hanover-Bank, keeping only V
road-Madison" Fund (whichi rer ^Guaranty: Trust./;"/
;* .K

•■ir:

cently saw fit to raise additional
Lehman
Corporation favored *
funds through a stock offering):. paper stocks, while lightening its f.-"T^e recent near-panic buying of 0jj and drug interests '? to somef;
so-called growth stocks is a top- extent. It also saw fit to decrease ?

Funds

..-

Midst Market-Business

of-lhe-market

sign.

sellers

Lehman

balance

and

Tri-Continental,

trasting

may

latters'

Quarterly Report

funds

attributed
well

the

greater

"consumer consciousness."

Expressed

Stockholders available

terms

dollar

transactions, the open-end stock
'funds during the September quar.

ter

bought

stocks
end

than

65.4%

they sold;

balanced

funds

common

the

open-

27%

and the closed-ends 18.2%

Carl M. Loeb,

more;j.

more.

Co.

r.''

Members 7{ew

It
'

•-

elusions

are

which these

ba^d

recent.
hv

annnr

its

holding

Electric

Bond

Dividend

Bullock;

land;

iuiun)Wm

„

pioyment'

oL the

proceeds

...

•

...

and Value Ltae Special

Situations'^

100,000-share block of Husky plus^

28,600 shares of Canadian Husky/

^ a^foliowf alter notif/the

22'000D of V
» ***?
!1.old,?S m^oyal Dutch. Offsetting,
"Jyestments, were made m chain
drug,
aluminums,

the

t$c£S, the pric! lev!

and
■

inese

popular

new

ucs. A

analv««! nf nrnlmhlp parninpi

nwcigu. iciiiwmeu

our
anrf

buyers

highly^W||wJ Probable earnings and vestors

fundssurely provided an additional. "neutral," standing on its
fillip to the stock market's bullish proportioned c^sb.position..
proclivities, offset in

some

meas¬

Expression

ure

by liquidation of their holdings in other funds held by their

of -Confidence

;

of
-

oils

was

,7"^vv.

National; In- '

in the Tri-group.r.;

long-time bull on;insurance

.-Mr..T,- Howe, Price, President
IheTund beating his name, forth-

rails.

substantial

■

oy
01

4I0f\ was felt t&!be. desirable.;
others, was its total ,.

from

New Eng-

Shares;'

Liquidating closed-end units inimpact from the recently formed eluded Adams Express and Amer-;

activities

Set

ou_.

con-

(see Table

page 24) do not include the strong

New York

(The

A
J
J
*
"
—_
f
vestment; Mutual T —
Investment; Na-< his fund's recent rights offering.
tion-Wide Securities; New EngTh
mana'~Ar'« W'thP kjp...

important to note further

that the ratios

Torlf Stoc\ Exchange

42 Wall Street,

;

hrniifcmr

w#»rp

Mutual; Massachusetts Life Fiind; umented inflationary* psychology. ™
portfoho policy, reduced
Stein Roe & Farnham; Wellington
seems reasonahie tp assume that
holdings from $55 to $46 >
Fund;
Affiliated; Delaware; ;-de'-;.the; great supply pf funds -and ^hlion,^ with the following ex- ?
Vegh Mutual; Dreyfus; Eaton &c shortage of ideas w h i c h have Pjanat*Pn'President Charles ?Howard
Stock
Fund;. Fidelity; driven Up the market in the so- •
vePs: ^ e mis still represent . >
Fundamental; Investment Trust of called growth stocks will spill over °.hr lapses! commitment in any.
Boston; M.I.Til and its sister M.I.T.; into the secondary issues, dogs single industry. It is an essential ^
Growth Stock; T. Rowe Price; ;ana: even puppies." He furiher husmess with sound growth char-> Texas; the United Funds Group; * predicted an eventual correct ion-.
f.' hut in the interest of.,
Wisconsin; Lehman; and Tri-Con-. 0f the high prices which would hjrther diversification and possi-/
tinental. On the other hand, im- come next year, but he expressed
greater increase in value- m „ •
portant net sellers among open- confidence that there will be un-/other fieids °p more rapid re-/
end funds included American dervalued areas with ^unrecog- ^oyery- ?. earning; power in cer- /
Business Shares; A*e Science & nized potential for fruitful
tn^rediiciv-^;

-Electronics; Commonwealth/In-

The New Funds

Rhoades

niPhq

TYPiv

greater pressure from in-

vestible

Latest

-rf."-'

open-end manage-

Possibly such conportfolio policy between

the closed and

...

and

cisive buyers.

ments

Thursday, November 13,1958

stocks, de Vegh Mutual Fund-this ^
time sold Aetna Life, Employers'.'

ex-^
be Group, Great Western. Life, Travoptimism, ihotivatingU: S: Fidelity & Guaranty/:

Jack J. Dreyfus, President,

switching subscribers. Since these plains
new funds
are
still partially un-^
-invested, the impact of their buy
ing as well as from the more

the

recently organized Wellington
Equity
Fund,
will / presumably

thing but dull and because raa'r-

extend into the current and future

good. As things stand

ket conditions

are

now,

tAToH

stock
"91

<u nu

Such pressure will also to us that market conditions
from the proceeds of closed^, likely to continue to be
good

end

Z'"
v°str

ior-^

Dealer

Investment

your
fATON

under

registration, General Public
Service, Such new moneys come

..;, . .//!
by
One William Street was blue-chip
LarSest

IBMwas

common

stock holdings,

March

1957

82.8%

recently.-;
i„

crease

Bullish and Bearish Managements

Particularly
of

common

strong

stocks

net

buyers

included

market

values

and

President

biggest

stake.

POLICY

TOWARD

INDUSTRY GROUPS
The

'•

following analysis of portchancres

•' drawn

from

our.

his words with port-

was
of

Walter L. Morgan)

Wellint?t.on

Fund,

^und.',

nearS"5OO^tock iffws'
issues,

uluwis in nearly, ovu siocfc

,
.
infprmtinmi
nil
18 based on the number of manreaucecr international oil.
ents buviria or sellina rather
stocks with substantial earnings»ugemenzs ouying or seuing, rattier
from Middle East operations "be- than on the ™™ber of shares mcause of less favorable conditions
volved\
v
.'i/:-;.in this area," as well as certain,.
During the September ^quarter

y..

On the cautious side is the fol-

;

Backing

wnicn

the

new
receipt of new funds from thapyfunds from the ex
ercise of warrants.)

Axe

Lazard's

acquired

Which/has^

almost steadily risen from 71% in:

the most part from their exist-

a»d

holding

maje ;n American Telephone.

rfdiLr
hnlffxhh"
^! nrni^I

iiig shareholders who in subs'crib- (This" record "reflects"
incf a\miri riiinfirvn nf
ing avoid dilution of their equity, .,^,.1^1^ policy in aqcution to in -h
portfolio joncy m addition
in-!'

HOWARD, Incorporated

24 Federal St., Boston, Mass.

companies from the sale of a while and for this reason we
or
conservative investment policy of
through rights below asset continue to be fully invested."
keeping a substantial portion of
value, including Madison Fund.
Quantitative, substantiation of a.
(the new name representing ; a continuing
longer-term : bullish hfinrl? and nthpr
nhuil
"face - lifting"
from
Pennroad), attitude is furbished by Tri-Cohti-r
,»
rrh;Q flmd
National
Shares, and, currently nental's record of - proportionate;

Prospectuses available from

City' and Signode);

sfoc Ks

anu

•
i
bought/ rnetais,; * rails, , and some
think, selected steels
(Carpenter, Granite
.
—

stock

Principal

?'»orsif?r,rr>arjiy f,a/

Tir

IYe

t„f.

are

">co,
w'.'vu^e0r,

earnings.

seems"

quarters.
ensue

maximum

good, prices are*!

„

income stocks including Beneficial
Finance and Household Finance;

fund managements particularly
favored the following groups: airConsumers Power: Duke Power; Mines, motors, coal, drugs, electrics '
;J GPU; N. Y/ State Electric & Gas; and electronics, paper, rails, steels,;
.i

Niagara Mohawk; and South CaroUna Electric & Gas along with
;; moderately" reducing- its holdings

ENERGY

of
eldctric':.equipments,
farm
machinery, rails, and some growth
Si issues.'?/.^" '
" - :

FUND

inc.

Tri-Continental
during
quarter particularly bought steels,
and was a heavy seller of bank
stocks

—

holdings

trating
ties

companies

Oil,

Natural Gas, Atomic

Energy, Electricity and
other activities related
the energy

f- X-

fields.

Commission

Selling Charge of
Any Kind
Offered

net

asset

value, redeemable at 99</o

lemaining 1%
tained

This

mutual

the securi¬

industries such

Chemical

end invest*

ment eonipany, concen¬

the

being

re¬

company

is designed to

—

sold

and preferred stocks and bonds

characteristics of stability)
facts

all

its

Manhattan:

Exchange;

First

panied
buying
included
farm
equipment, banks, beverages, conr xm r»- an' glass, finance compa-

through diversi¬

The

possible growth of principal and income);

Boston Fund,

? Ask

prospectus,

of ^Boston

in¬

your

PUTNAM FUND

(chosen for

Why not get the

now

Cjeorge

"A BALANCED FUND"

write:
THE

VANCE, SANDERS & COMPANY
111 Devonshire
YORK

St., Boston 9, Mass..

CHICAGO

LOS

•

PUTNAM GROWTH

ANGELES

FUND

* o.

Stock

Please send

without

Exchange

Broadway, N. Y. 6
CO 7*8800

.if.

obligation prospectus

Boston Fund.

Emphasizing possible long-term Capital Growth

CFC

Name

Prospectuses

Address..............

i.,

Request

Putnam Fund Distributors, Inc.
State

60 CONGRESS STREET, BOSTON
New York

Chase

fied holdings of common stocks (selected for

NEW

RALPH E. SAMUEL
115

fact,

Corn

BALANCED IN¬

VESTMENT PROGRAM

Write to Dept. F

embers N.

On the ot^er bund, industries in
which considerable selling accom-

pro¬

vide, in ONE security,

vestment dealer for

Fund).

Distributor

investment

SEND FOR FREE

PROSPECTUS...

equipment, international oils, railthe r°ad equipsnent, and retail shares/

■m

Aii open

and textiles.
There was also 3
good-sized interest displayed in

aircrafts, auto equipments, build—
ing, .chemical,
insurance,
ma-'.*
chinery, lead and zinc, office

Chicago

Los Angeles

Washington

Orlando

Volume

Number 5794

188

foods,. metals

The Commercial and Financial Chronicle

arid copper,
—

Thus

natural

III

gas,

utilities

was

doubt

Stimulated

by the trend toward higher money
rates. -w'---.
■*,
v;-V' /'

Air crafts
%.

;
Purchases by the following newly formed funds are included: One William Street Fund (for period from May 29 through
exclusive of Securities acquired from Aurora Corporation), Lazard Fund, Missiles-Jet & Automation Fund
(through September 16)," and Stein Roe & Farnhkm Stock Fund.
,

Moderately F a vored

American
Aviation, whose 8 buyers included
•United Funds - with 35,000 .shares
newly bought and Investors Mu¬
tual with 42,COO shares.
Sharing
;the spotlight- was Lockheed,
of
which the Tri-Group acquired 50,,000 shares and Investors Mutual
;25,600. Opinion was dividend on
..•United, Aircraft, one of the initial
•investments of Lazard Fund, and
on
Boeing and Bendix.
Selling
predominated in Douglas, of

No. of

(; NO. of /'

No. Of

\:i:By far. the sharpest stand-out;

Trusts ' Shares

Shades
*'

1|;

6(3)

-^7(1)

International Harvester

Boeihg Airplane'

f 21,700

I 20,000

j- 39,500

General Dynamics

102,100

Lockheed Aircraft

6(1)

3(1) K
.

1- '

;.8

;

Airlines Well Bought
Here

note

15.896

_ _ _

Curtiss-Wright

which M.I.T. sold its entire hold¬

.1
7

137,500
13,000

5,300

Martini-_

2,000,

■

-b' '

7(2)
3

2(1)

burst of buying

400

500

McDonnell

—jl j.

_f-

3,120

:4—w
North American Aviation—.

102,100

;

•

2(1)
3(2)

2(2)

2(1)
3

•

49,200
19,400

Vought"M-——
Douglas Aircraft-1—__ ii

7,125
55,950

2(1)

Chance

;

•••?.

None

Penri-Dixie Cement———

Raymond International—_ L——

600

U» SI Gypsunu.
U. S. Pipe & Foundry.

;

27,500

2,000

;

5(1)

None

1(1)
2(2)
KD

V
:

4(1)

11,500

None

U. S. Plywood-.

None

American Radiator & Standdrd-

53,100

2(D

Bestwall Gypsum

500

2,800

Weyerhaeuser Timber.-—^-. _—

96,200
20,000
41,500

;

None

900

Trane

26,900

None

Sherwin-Williams

12,800

2(1)
5(1)

None
None

None

Ruberoid.

6(2)

None

None;

3,000

_-—i_

Otis Elevator.

20,000
6,900

Nohe

54,700

National Lead.——

KD
2(1)

N(me

—

25,000

'/'•

Airlines, with the
; 9(5) ,'j 123,900. > American Airlines
-u—£
acquisition coming from;
3(1),4v 22,600 ■ .Eastern, Air Lines___r_-_L'iJ;
; the Bullock Group (39,000 shares),;
3(3)
68,000 •?■ Northwest Airliries.____ J__
; followed
by Fidelity^ Baton &
2
•
'
J
7,800
Pan American World Airways
'(Howard Stock,, and State. Street..
,4
Gbod
; h 18,130
United Air Lines—
J
buying also
occurred in
Northwest Airlines, with Fidelity,
4-!/•- J- ■'r'tv-'!
Automotive • •
alOne
newly
acquiring
51,000;
68,900 ; Chrysler
shares. Dn the other hand, opinion
•«<2)
62,H00
Ford_—I——
J-iiwas divided oh Eastern, of which
207,400 4' General Motors.:15(5)
State
Street sold
50,000, while
Mack TrucksOr_-i___-i_i
EatOn & Howard Stock Fund made,/ 2 ■:/, .i,-8V000
11,200 - White Motors.j
3(2)
an initial commitment of 14,000.
•largest

5,000
3,500
8,100

North American Cement

21,500

•

None

—_

Gypsum—1L—1

None

Masonite
National

2(2)

None

-———

41,000
2,400

4(2)

Airlines

-.ft.'.V::;',

- -

' :

Lehigh Portland Cement— __
Lone Star Cement-—

Marquette Cement

Nolle

19,000
1,500
6,000

Ji.

16,500

4(2).
2(2)

6(3)

None

Ideal Cement—^.^.———

Johns-Manville

Kl)

5,739

———

65,500

Juri

.1(1)

Trusts

Georgia-Pacific

29,000
3,600
50,600
19,300
14,800

3(1) '■
5(1) •
2(2) •
KD
3(2) V
6(2) -

•

Bendix Aviaiion_i._ i

4,500

No.of

22,040
23,300

2(1) '

United Aircraft-^.—

56,300i
-28,300
(:• .500

-SoldNo. of

Trusts

5,000

■

-I

American

4,100
3,500

„

No. of

Aircraft Equipment

Aircraft rand
2

i—L-.

-Bought—

'i.;

Agricultural Equipment

T Deere——L_L—

71,500
56,40t)

ing of 50,390 Shares.

\ •

;

-Sold-

in this group was North

;

: ■:

September 30;

FAVORED GROUPS

(July-September, 1958)

by more than one mahagemerit group occurred. Issues which more managements sold thaii
bought are in italics, Numerals in parentheses indicate number of managements making entirely new purchases or completely
eliminating the stock from their portfolios. (Purchases shown exclude shares received through stock splits, stock dividends or
spin-offs. iChahges dhfonghmergers also disregarded.)
Issues in which transactions

cyclical area;
seemingly an accentuation of the
speculative trend. Liquidation of
the

;

...

shift from the

we see some

defensive

aluminum
domestic
oils, utilities, tires, and tobaccos.

nies,

•

(1999)

23,440

3(2)
2(1)

——,—

Minneapolis-HaneyweU

{

3,000

—

fertilizer.

Chemicals and

(

None

•

6,000
14,000
14,500

•

Here, GM dominated the

scene

in the preceding quarter.
more than 207,000
shares

,* Of the

.bought, the largest single acquisitiOns
were
hiade
by the
TriGroilp, with 70,000 shares newly,
"

with

Lazard

M.I.T.

32,500,

25,000, and Fidelity 23,500. Also
liked, in contrast to the preceding

Ford, picked up by
(28,900) and Affiliated

quarter,
Fidelity

was

;by - newly-acquiring
Sayles. ■
•
*1
'

*•

.Loomis■

3(1)

Here

Electric

None

2(1)|

3(3)
2(1)
3(1)

None

3(2)

None

;

4(2)

Dana
Eaton Manufacturing

' i

1(1)
-

;

11,500

2,000

..1.

'" T

"/•'

Banks

9,150
9,000
5,800
5,600

v
v

Storage

Battery,

Equipment, Thompson
Products, and newly-marketed
Champion Spark
Plug
all
at¬
tracted buyers, with no sellers.

American Trust (San Francisco)

i-.-l—

Chemical Corn Exchange——__

City Bank of N. Y.—_
Guaranty Trust. J
1
1—
Marine Midland

—

New York Trust

a—

11,600
15,445

;•

::-.i
-

":,y*

'••* ■ ,*-

Beverages

25,900

Coca-Cola

10,500
12,900

2(1)
•

2(1)

Stauffer Chemical

18,500

•

3(1)
2(2)
2(1)

None

—

Spencer Chemical——-■>.—

Tennessee Corp.

5,700

Thiokol Chemical
Union Carbide—

16,000

was one of

;

the initial investments

12,000

United Carbon

of One William Street to the tune

20,000 shares;
■Mutual
adding
'

iOn

was

divided

but here
•

•

Lazard

Investors

26,100.'; Opin-

19,600

National Lead;
was
the initial

j..

4(2)

7,100

American Cyan amid

•how

Thompson

2£,000 shares, and the
selling wave of the June
quarter did not recur.
On the
selling side in this 1 group was
American Standard, of which Na¬

buyer
heavy

Kl)
6(4)

Continued

•

page
•

• •

MUTUAL FUNDS

THESE

2(2)

None
1

2(2)

tnvestiirg in common stocks selected

□

3,000

9,700

over

the years.

General; Portland Cement

for

possible growth of capital and income

1(1)

Flintkote
•'

None

50,400

Victor Chemical

18,200

Consolidated Cement

42,400
5,000

with

None

000

2,200

ABOUT

2(1)

Ramo WooWridge;

Diversified Investment Fund, Inc.

□

Investing in a balanced list of bonds, pre¬
ferred stocks and

common

stocks.

Mutual Investment Funds

tional Securities Stock Series sold
•

all

its

49,100

shares, only

partly

Bond Series

Diversified Growth Stock Fund, Jnc..

offset by a new 20,000-share com¬
mitment by Concord

Fund. Bestwall Gypsum
(one of Lazard's
larger
initial investments)
was
also
acquired
by
State
newly
Street; but these buyers were out¬
numbered
by
three sellers, of
whom the largest was the United
Funds Group with a 21,218-share

•

Balanced Series

□

Investing in common stocks

•

„

•

Preferred Stock Series

including

such

industries

as:

chemicals and atomic energy.

Income Series

Stock Series

closeout.

selected for

possible long-term capital growth—now

Prospectuses and other infor¬
mation

Dividend Series

these mutual funds

Name

available from total invest¬

Chemicals and Fertilizers

# Growth

Stocks Series

ment

Popular
In

this

firms—or checkmark your

above

preference
group

Union

Carbide

DuPont, which had been sold
int the June quarter, strongly re¬

■

this ad to:

Infonnation Folchrr and Prospectus on Request

and

Address

mail
City and State

and

gained favor. Carbide was bought
by
11
managements,
appearing

Continued on page

NATIONAL SECURITIES &

RESEARCH CORPORATION

HUGH W. LONG AND CD., INC., £/;iofc«»fc 3,

Established 19S0

120 Broadway, New

York 5, N. Y.
•

•

5(2)

2(1)

20,900
4,000

—

Carrier

2,700

——^

—

None

17,200

Fundamental Investors, Inc.
None

American Cement

Armstrong Cork

—

•

None

—-.

' 1,000

—

•

■

3(1)
2(1)

3,500

HOW TO GET INVESTMENT FACTS

i_l——

—

80,000

—

2(2)

•

None

———„—

————

——_

2(2)

3(2)
2

8,000

Hooker Chemical

11(3)

■:

None
9,600
Interchemical
J—
10,600
Monsanto
46,530
Pennsalt Chemicals
—2,500
Rohm & Haasu-*--————
670

Hercules Powder

Building, Construction and Equipment

50,000
io,o0o
5,300

3(2)
l..-;.:

46,000
3(1)
5(2): 118,000
3(2) ;
3,700
6(3); 12,922
2(2) • •7,100
7,580
3(1)
4
8,900

;

2,500

Freeport Sulphur

3,000

;

Canada Dry

^Considerable new interest cen¬
tered on the cement Stocks, with
tJbne Star and Penn-Dixie clearly
-the standouts.
In fact, Lone Star

6,600

Pepsi-Cola

Hi)

Buildings Bought

——1—J—

i■

———

Eastman Kodak

None

35,178

—

Irving Trust 1.i

None

Cont'l ML Nat'l Bank & Trust—

^4'

None

44,500

■

None

Hanover Bank

3,000
10,000
15,000
i

1,200
1,000
67,000
17,000
5,500
11,200

Security-First Nat'l Bk. of L. A.
Chase Manhattan
—_*_■*,—

31,000

I(I)l
KD i
1(1) )

None

None:

'1(13

•;

First Nat'l
-

None

Bank of America-

3(1) V 31,000
4(2),, 30,600

3(1)

,1(D *

" * '

11,500

5;ooo

10,700

I—J

3(1)

;

1 °

None-

■V-.

None

2(2) r
3(2) v
6.510
4(2) : , 22,300

Chemical--

—

7.——

3(2)

12,000
5,000

Smith (A O.)—
—i——
Thompson Products$-__l-J_;

2,900
5,500

z—1^_:

Electric Storage Battery—j
Federal Mogul-Bower. j
— _
National Malleable & Steel Cast.

4 -16^200

Noiie

Food Machinery &

Champion Spark Plug__^_
—
Clark Equipment
i__—

4(1)

18,900

48,775
9,000
6,400
7,600

None
14,050

Hu Pont

5(2)

•Kl)

Kl) V
j it™

30,400
25,200

7(2)

None

30,140

34,400

2,500

Automotive Equipment

•

3(1)

"23,444

Diamond Alkali——

6,160

;

—

Dow Chemical-—

5(2)

Borg-Warner—ill__—_j.__l__

2(1) '

Clark

None

21,700

3
1

;■

.Automotive Equipments
Purchased Moderately
.

None

;

...

; (20,000), among others; with sell'ing coming infrom Putnam
(8,000) and a few others. Both'
; Fidelity and Affiliated also were
.large buyers of Chrysler,-joined

•

5(2)

Motors Favored

again

3(1)-

10,400
Allied Chemical J-.-.-Jw—11,800
American Agricultural Chemical
None
Columbian Carbon
4,000
Air Reduction-^ta^^w^w——

49,000
70,100
8,100
3,900

.3(2)

None

—

I ;'

:••

electronics,

•

The Commercial and Financial Chronicle

(2000)

Balance Between Cash and Investments of 79 Investment
End of

Com. Stks.

Investment Bonds and

Per Cent of Net Assets

End of-

Open-End Balanced Funds:

End of

Sept.

June

Sept.

3,665

13.2

.12.3

33.4

32.2

Axe-Houghton Fund A
Axe-Hough ton Fund B
Axe-Houghton Stock Fund

4,375

9.9

4.2

39.2

37.3

50.9

29.2

§26.9

68.9

1.9

1,702

>•

§28.2 v,

0".2

2.4

4,799

2.1

2.8
1.9

18.5

8.2

10.3

930

2,282
13,759
1,280

2.8

1.4

1.8

347

309

6.1

5.1

~~19

Axe Science & ElectronicsFund

....

Commonwealth Investment

;

Diversified Investment Fund

V;.

Dodge & Cox Fund
Eaton & Howard Balanced Fund

202»

3,323
3,168
10,330

—

Broad Street Investing

Sept.

53.4

3,325
1,891

20,509

22,836

§74.8

78.7

23.6

21.1

68.2

68.6

7,780

28,0

26.6

70.6

71.6

4,803

26.9

27.5

67.0

67.4

454

363

205

63.2

3,856

2,913

1,119

70.4

678

209

333

72.8

-306

349

249

1,745

1,833

28,571

29,229

1,239
21,957

17.7

18.3

83.5

'
-

74.8

7.5

4.8

7.5

8.9

3.6

361

14.6

-v

69.9

233

492

373

|[37.5^..i--'•:-433.6

24.8

866

492'

633

9,357
V

72.0

22.6

312

10.756

$63.6

25.9

684

10,959

528

2,567

74.8

26.9

General Investors Trust.

669

Sales**

None

±60.4

60.4

Group Securities—
Fully Administered Fund

529

,25.6

25.0.

10.9

12.7

§72.5

§70.0

§25.2

■

2,706
13,251

Total

Purchases+t

Sales**

None

58.5

Common Stocks

Total

Purchases1^

55.5

Of this: Portfolio

Other than Governments
Total

June

Sept.

June

In Thansnnds of Dollar*)-

-i

Portfolio Securities

Net Assets

End of

June

American Business Shares

Boston

Per Cent of

Per Cent of Net Assets

End of

and Lower

Grade Bonds * Pfds.

Preferred Stocks*

Net Cash & Governmentat

Thousands of Dollars

Security Transactions by Hie
79 Investment Companies
Owing Jety-Sept., 1958

Companies

Quarterly Periods June and September, 1958
Net Cash & Governraentst

Thursday, November 13,1958

....

5.1

•

985

650

2.874

184

9,848

9,471
4,496

4,530

5,898
9,916

•

658

3.306

3,701
6,557
2,277

...

6,120

275

•

1,307
134
•.»?/■ ••

•

Institutional Foundation Fund

506

Investors Mutual

819

;

Johnston Mutual Fund

474

Loomis-Sayles Mutual Fund
Massachusetts Life Fund
Mutual Investment Fund
National Securities—Income
Nation-Wide Securities
New England Fund

George Putnam Fund
Scudder, Stevens & Clark Fund..

385

2,252
14,330

Shareholders' Trust of Boston.......
Stein Roe & Farnham Fund
Value Line Fund...

26.7

60.3

67.9

735

360

10.3

67.6

73.5

N.A.

22.9

51.8

55.9

8,669

10,498

21.2

6.6

5.4

30.0

27.8

63.4

66.8

2,830'

16.8

28.0

27.4

58.4

55.8

1.8

2.2

7.5

6.4

90.7

91.4

7.0

8.7

35.0

2,073
7,565
2,518

9.0

14.9

28.4

6.8

5.6

27.8

18.0

1,644

1.8

742

2.1

3,001

9.7

2,200
70,370

58,258

Whitehall Fund

36.1

58.0

55.2

20.0

62.6

65.1

26.5

65.4

32.2

61.4

65.6

35.2

*35.6

62.7

61.3

29.5

25.7

60.8

64.3

10.0 •

4.2

None

94.7

96.1

5.8

4.9

91.1

92.5

28.4

-25.5

63.4

,65.5

;

43.0

6.5

39.2

55.1...

26.9

2.8

1.9

24.2

66.7

5,319

1,078

1,424

7.099

1,566
625

5,471

5,681

337

1,478
2,373
2,339
6,844
32,616 :

44,585.

5,929

467

1,578
2,875
3,186
6,751
.31,198 ¥

„

283

376

1,662 :
11,944 •
1,243 >

7,503

9.0

6,597
1,698

5,929
3,271

8.2

157
N.A.

2,174

3,918
2,634

2.6

3.9

2.1

274 v

170

; 3.1

13,084
1,922
3,156.

484

N.A/

683

543

67.9

~36.8

2.2

i
•

1.1

370
■

13.8

2,584

...

32.3

2,747'
43,343

30.2

2,619
2,165
9,228

1,536

Wellington Fund

86.2

§$63.1

13.6

2,388
3,650
,1,379

442

Value Line Income Fund

N.A.

$62.1

5.4.

18.6

10,333
1,260

...

8.8

§134.7

16.2

7.4

2,426
11,549
2,636
2,648
1,028
2,080
1,291

N.A.

H37.4

■

0.5

5,469

Knickerbocker Fund

.,58.0

391

214

<69.3

198,425

152,387

<*£21,586,

8,904
1,921
V 3,121
10,187
2,860
11,205
1,383
4,707

21,586
1,025
T 2,226
■12,252
3,778
5.016

358

287

1,232
.1,363
2,410
:
6,192
25,317

•

;

214

Sub-Total Open-End Bal* Funds.

156,477

6.4

167,271

;

136,371'

107,408

Open-End Block Funds:
*

Affiliated Fund...

62,778
1,941
7,373
2,539

...

Dreyfus Fund
Eaton & Howard Stock Fund

Institutional Investors Mutual Fund§§
Investment Co. of America
;
Investment Trust of Boston
Massachusetts Investors Trust

Massachusetts Investors Growth Stock
"•

National

Investors

Pine Street Fund

1.3

80.1

77.1

6.0

89.0

92.0

4,088
8,657

1.1

0.8

None

"None

•83.1

81.6

None

91.0

99.9

None

78.5

,78.3

None

98.7

99.6

268

362

268

362

5.8

2.8

93.1

.95.9

•'. 29,838

24,524

29,675

17,625

i98.0

19,661

8,340

19,341

8,340

188

2,627
27,201

8.607

•

99.3

None

>0.1

None

99.2

None

95.5

97.8

8.4

0.9

89.3

190.7

7.3

None

20.7

0.1

0.7

0.5.
'

2.2

;

7.35
22.5

...

•

99.5

8,607
33,989

3,121

9,111

5,384

2,860
11,205
1,383

5,605

1,707

33,989

2,627
27201

92.65

92.7

N.A.

77.4

78.6

12,101

10,279

11,452
2,744
32,677
9,284

10,279

88.8

4.7

§7.5

None

97.4

97.5

a32,677

5.6

8.3

2.5

2.6
'

93.35

96.9

;

9.8

i.3:

4.5

1,102

None

•1.9

3.1

8,904

2,226
713,347
1
3,778
:
5,016
5,384
..
7,581

0.4

•

1,130

None

21.7

None

95.3

94.4

10,866
1,740

14,501
1,695

2,813
4,952
10,866
1,497

495

1.300

495

—

——

§91.2

1.2
;;

None

2,850

None

0.7

98.9

98.1

2.6

1.1
1.8

None

98.2

97.4

11.7

10;7

82.8

84.3

9,284
6,517
14,501
2,117

3.6

5.7

72.0

72.4

None

7,587

1,300

779

777

5.5

5.0

2,906

3,097

24.4

21.9

408

T. Howe Price Growth Stock

None

6.4

0.1'

21.5

11,117
1,020
3,856

.92.5

None

0.7

18.4:.

2.9

2,337

86.6

91.8

6.65

32",313

786

National Securities—Stock

84.5

None
';

2.0

16.9

23,715
1,263
29,771
7,893

0.4

--,0.7

1.0

22.9.

4.6

1,045 ;
23,231
2,994 (
24,675 /

23,342
2.944

0.5

6.8

19.9

111

Incorporated Investors.....

13.0

•-

7.2

25,496

1,836

9.0

3,030
12,337

General Capital Corp
Group Securities — Com. Stock Fund

•

Fundamental Investors..

21,763

...

Fidelity Fund

45,294

38,722
2,008

Energy Fund

15.0

119 1

....

Dividend Shares

...

......

Delaware Fund.........
de Vegh Mutual Fund

60,088
1,980 :
10,530
1,242

991

.....

Blue Ridge Mutual Fund...
Bullock Fund

843

2.2

2,813
4,952

6.017

None

17,587

Scudder, Stevens & Clark—
Common Stock Fund
Selected American Shares....

United Accumulative Fund
United Continental Fund

Z_.II

United Income Fund.
United Science Fund

Value Line Special Situations
Wall Street Investing
Wisconsin Fund

Carriers & General

1,510
2,045
4,815

General American Investors
General Public Service.
_

Lehman Corp;
'

National Shares

2,319
12,581
'
,

__Z
ZZ

Securities

4,297
689

2,329

Tri-Continental

itQ!6

U. S. & Foreign Securities

notes where

-90.2

97.0

13.7

75.5

1.3

86.6

93.3

12,123
1,293
29,167
3,301
15,734
10,259

9,097

95.1

„

83.5
92.0

■

9,097

1,272

632

11,759

26,366

5,509

2,435
10,086

150

$$10,123

632

3.301
13,720

:i,495

10,056

3,975

762

1,337

1.5

2.2

None

97.8

762

4,239
1,381

18.0

14.9

0.5

None

81.5

85.1

379

188

379

188

4.9

8.9

8.1

77.5

87.0

1,280

193

1,280

193

2.3

2.0

89.3

91.4

321,915

13.6

12.4

78.9

81.0

520,340

359,530

539

2,420
1,455
1,809

13.6

6.5

•

90.6

194.7

86.1

■

98.5

6.7

0.5

94.2

8.5

31.3

26.3

64.2

65.2

4.2

7.5

0.9

94.9

91.6

80.7

80.5

893

666

90.6 h

90.0

426

91.5

92.0

5.3

12.1

9.8

7.6

b8.4

8.3

7.8

9.7

7.2
1.8

1.6

0.2

92.8

_701

333

5.5

191

;
•

5.1

>342

•

6.3

88.1

89.7

1,969

2.8

91.9

90.9

§7,8

§89.7

§68.5

440

12.2

81.8

86.6

24,956

82.6.

84.8

None

86.3

56,269

82.1

576,609

8.9
.

1.4

"T.2

19,293

18,505/
65,197

533,478

93.2

92.5

96.1

1,276
cl0,786
13,920

CO CO

7.3

classification.

15.2

17.4

•

None

6.1

6.3

5.7

87.5

11.4

80.3

6.5

12.4

assets.
ftCost of purchases.
* "Proceeds from sales. .^Estimated. - ggOwned
by R8 savings banks, etc. in New Yorki State.
WlFormerly Pennroad
Corporation, a Exclusive of corporate short-term notes, b After purchase
^Common

stocks

293,879

2,420

351

None

94.5;

2.4

3.1

9.6

16.8.

0.7
...

c0.5,

1.5."

3.0

3,224

3 .0

c6.3

4.4

186,471

444,905

481

1,726
al,136
7,926
12,901
1,985
1,356
1,044
24,398

•

only. J, gin

percent

gross

own

$4.50 preferred

549

294

i' 1,809

345
-

666

426

-1,551

1,276

6,063
13,920
1,166
30

of 79 Investment Companies
vs.

*1,044

23,924:

12,239
None

58,822

48,676

41,227

418,352

stock-at

None

493,581

335,106

cost of £237,346..

Equivalent, Defensive Securities, and Risk Securities 7"
*

Plus

Open-End Companies
Balanced Funds
Stock Funds

Closed-End Companies
Totals

Minus

Approx.
Unchanged

Total

Net

cash, etc., and Governments
(investment
and preferreds)
Risk securities (common stocks plus
lower grade bonds and preferreds)

June

30,1958

bonds

7.3%

6.5%

12.4

11.4

80.3

82.1

100.0%

Sept.- 30,1953

Defensive securities
.31.,.

Including assets

acquired .through transaction, with Wecaf.Holding Co., Inc.

Average Allocation by 79 Companies of Assets to Cash and

June 30, 1958

1,136
4,496

12,901
1,060
1,356

$$400;

—SUMMARY

Changes in Cash Position
Sept. 30, 1958

9,558

308,534

207,143

4.5

520,858

tliyJsding corporate short-term

88.6

2.1

included by reporting
nvtmunt company.
^Investment bonds and
preferred stocks: Moody's
Ann through Ba for bonds; Fitch's AAA
through BB for preferreds (or<
HBonds and preferreds
approximate equivalents).
irrespective of quality

1.1
0.4

7.0

0.5

;

RQ QQC

Total Closed-End Companies
Grand Total

;

§9.0

I
Z_Z

Madison Fundi;t[

Niagara Share

None

18.3

6.6

8.2

9,748

0.7

;

7.3

6,376
1,636
2,982
1,773
b5,862
2,359
cl6,407
1,540

11,576

6.2

2.8
13.2

468,281

840

'574

al0,352

158

3.2

301,010

4,462

939

al2,574

0.5

6.7

460,862

Securities__ZZZZZ

574

95.3
93.2

2.8

6.4

304,385

....

American International

6.2

;

187

653

939

94.6
94.5

2.6

1,216

Closed-End Companies:
Adams Express

Overseas

8.7

4.4

114

Sub-Total Open-End Stock Funds

American European

11.4

1,350
1,689

...

Total Open-End Funds

5,756
2,340
6,066
3,863

96.2

2.0
4.4

2.4

■

97.8

0.4

4.4

2.7

1.1

15,255
889

3.8

5.0

18,527
1,369
10,961
1.945
4,691
6,805

State Street Investment

Texas Fund

„

2,131*

*3,507 '

Sovereign Investors

•

100.0%

Volume 188

The Commercial and Financial Chronicle

Number 5794

Continued jrom page
—Bought—

these ;

Continued from page 23

Issues included the Axe
Group;-' Eatoh &T Howard Stocky
Loomis-Sayles; Concord; and Mu¬

—-Sold-

(2081)

No; of

No. of

No. of.

tual '■•Investment;

No. of

Trusts

2(1)

3,100

Intemat'l Minerals & Chemicals

2.818*

Pan; American.Sulphur—

Office

3(2)
2(1)

19,600
4,300

3(2)
1(1)
3(2)
1(1)
2

41,800
1,500
144,600
20,000
11,200

•:

and ' Coke

Consolidation Coal..

>..

•.

■

—

Eastern Gas & Fuel.^

PeabQdy Coal
Truax-.Traer Coal—_

—

Fundamental Investors

also

large initial purchaser, DuPont
buying only, and like
Carbide, was also acquired by

elicited

None

2(1)

Lazard

newcomers

Also

Street.

Glass

Containers and

•with

10,800

Pittston

William

and

liked

Allied

was

Chemical, bought by the TriGroup (32,200 shares initially);
One
William; Fundamental-Di¬
versified; and Investors Mutual,
while
Wellington was a seller.
Opinion was rather dividend on
Dow and Eastman. On the other

13,500

Owens-Illinois Glass

23,200
11,100
10,000
51,000

—_—

700

Pittsburgh Plate Glass
Standard Packaging
Thatcher Glass Mfg
American Can.—————-—-

200

Anchor Hocking

4(1)

GlassCorning Glass Works——
Owens-Corning Fiberglas

2,000

—

3,200

— -- _

1(1)
1(1)

None

Libbey-Owens-Ford Glass-Lily-Tulip Cup

2(1)

2,200
2,100

10,500

Continental Can

66,000
44,800
6,200

None

8(2)
2(1)
5(2)

hand, Hooker was strongly fa¬
vored, 40,000 shares going to One
William
Street; 60,000 to TriGroup; and liT,000 to Chemical

3(2)

Fund.

ci,

2(1)
7(3)
6(2)

18,200
2,000
3,000
28,000
26,265
30,300

1.2(1)

63,200
37,800

1(1)

1,425

5(2)
3(1)
3(1)
2(1)

25,800

Abbott Laboratories.

4,900
10,000
9,600
.—'
6,000

Allied Laboratories
-

.—

American Home Products.

-Bristol-Myers
Lilly (Eli) "B"

.—

——

J—

Merck

.—

Norwich Pharmacal

*500

4(1)

Pfizer (Chas.)
.
-Rexall Drug————.
-

Searle (G. D.)
-Sobering

.—

—.

Smith, Kline & French—.

9,900

Sterling Drug-——-—

17$00-

■Mead Johnson ■—-—.

6,000

5,000~

Parke, Davis

16,900
12,000
61,000
None

——

22,200

None

8,000
21,700
8,400
20,000

17,000
10,400
28,700

—

Warner-Lambert^-——----.

1(1)
1

a(D
None
4

3(2)
None
a'.:.

4(2)
2
2

3(1)

7(2)
1

5(1)
3
2
;

5(4)

7(3)
2

3(1)

22,250
91,200
3,300
62,200
6,700
12,500
11,700
84,700
46,100
1,500
17,500
979

5(1)
4(3)
4(3)
6(5)
2(2)

39,900
13,500
7,000
54,100
22,700
None

None

1(1)
None

lfiOO
None

General Electric———

Hazeltine—————

/>■"

3(1)
5(2)

5(1)
1

None

McGraw-Edison -—None

None

Philco

Litton Industries

None

International Tel. & Tel
-

—

1,100

Philips' Lamp Works—
(50-guilder shs. or equivalent)
Radio Corp
Sperry Rand———______
Sprague Electric--—

———__———

Square D
Sunbeam-

——--——_

Sylvania Electric

— -———

Texas Instruments

Westinghouse Electric—-;—__—
Whirlpool
—;———
—

Day strom

———

—

Raytheon Manufacturing
Tung-Sol Electric

—-

America,

Group,

United Funds
making initial pur¬

all

chases, and Atomic Development
Mutual
increasing its
holding.
Also

exclusively

bought

were

American

the other

hand^Pittstott

was

sold dently

by Axe-Houghtoii B (10,000),
*-'V7

'"r i-

f'.-fr

«*.

accepting

was

substantial

capital gain.

«
'

v «

,i, •

In the life group,

buyers

bal-

47,000

Beneficial Finance-

—

C. I. T. Financial—

3(1)

8,700

3(1)

18,800

Pacific Finance———

None

American Investment Co.

2(1)

23,000

Cohimercial Credit.

25,000

—

None
19,000
13,000
2,000
6,120
None

None

None
1,500
10,800
None
7,100
1,000
9,300

None

4(2)
2

the

ance

1(1)

4(3)
None

2(1)
2

Machinery Issues in

and Farnham Stock Fund, Merck
also
by
One
William
Street.

Good Demand

V.f'

Opinion was divided on Pfizer
Of the former, One
William
Street
bought
30,000
shares, and the United
Funds
Group 23,000 shares; but Affiliated
Fund elimimated its 50,000 share

Caterpillar
Tractor
was
the
most widely sought issue in this
group, followed closely by Dresser
Industries, buyers of the latter
including the Fundamental-Diver¬
sified Group; the Tri Group; the
holding, with M.I.T. selling ten
United Funds Group; and Madison
thousand.
Parke, Davis lost its
former favor and Warner-Lambert Fund; with Putnam and others on
the selling side. Also in demand
was
rather heavily sold.
were United Shoe Machinery and

Mostly Favored

A balanced nrqtual fund

2(2)
1(1)

1,500

liquidation, G.E. now at¬
Popular Metals
7 buyers, who acquired
In the metals group, American
— Lazard; One Wil¬
liam Street; M.I.T;
Selected Smelting increased its popularity
American; Investors Mutual; Com¬ from the previous quarter in
monwealth Investment; and Dodge terms of shares bought; and also
& Cox.
The 5 sellers included bought gingerly in this cyclicallyState Street; United Funds; Gen- recovering group were New Jersey
eral Investment Trust; Pine Zinc and St. Joseph Lead; both of
Street; and General Capital. Also which found no sellers. Buyers of

of income and capfcq

tab

;

'■

Prospectus

;

y-1

request

Chase Distributors

Commonwealth; Scudder Common
Stock Fund; United Science; and

Corporation

Selected American.

75 Federal Street, Boston 10, Mass.

going

tracted

3(1)

27 £00

2(1)

page

cur-

:loi^

91,200 shares

17,300

for

possible

.term growth

contrast to its preceding thorough¬

15£00

and

Cooper-Bessemer. Babcock & Wil¬
found only sellers, including

In greater favor than in recent
quarters were the electric equip¬
ment and electronic makers.
In

Contmued

income

rent

cox

2(1)

31,300

Boston
of

largest buyer (17,800 shares). Lazard; and Commonwealth In¬
vestment; the seller being Invest¬
ment Co, of America.

Second most widely bought were
Abbott and Merck, both acquired

Electricals

—

Household Finance———

Shareholders' Trust

and Schering.

(III.)—

—

favored Lincoln, National
In contrast to the June quarter, Life & Accident, and U. S, Life.
The veteran growth issue, Lincoln,
Eli
Lilly strongly returned to
was bought by Investors Mutual;
favor, with Incorporated Investors
.

5,000

2?rr

Seaboard Finance—.

Company

3,400

Associates Investment——

None

Johns to n,the

43,400

10,500

;

by the newly-organized Stein Roe

None

Finance Companies

2(1)

None

were

Drugs Still Popular

None
24,000
2,253

included

latter

the

and Electronics

~Ampex__——————
-

previoi#

Ampex, Litton Industries,
Mc¬
Cyanamid and International Min¬ Graw-Edison, Sunbeam, Sylvania
erals & Chemicals; of the former (now merging with General Tele¬
the largest sellers were Madison phone),, and Whirlpool;
;
<
Fund and Broad Street; of the
latter, the Bullock Group and Insurance Moderately Liked
Niagara Share.
The fire and casualty companies : The Dreyfus Fund is a mutual fund
continued moderately * to attract
Coal and Coke Bought
in which the management hopes
buying, with Maryland and Trav¬
Here easily the standout was elers
remaining in the forefront.
to make your money grow and
Peabody Coal, which found heavy The
former's
buyers
included
initial buying on the part of Elec¬ Massachusetts Life
takes what it considers sensible
Fund;. Inves¬
tric Bond and Share (80,000) and tors Mutual;
and One William
risks in that direction.
Tri-Continental (57,000). Also in
(15,000); with Travelers bought
good demand was Consolidation, by Madison; Pine Street; Dodge
Booklet (prospectus) free from your dealer,
thanks particularly
to a 35,000 & Cox; One William; and Lazard.
or
DREYFUS Corp., 50 B'way.,New York 4
share*conimitment by Lazard, On The seller was de
Vegh, who evi¬

Electric Equipment

In disfavor

and; Axe-Houghton

vestment

63,400

4,600
18,600
25,200

the

Shareholders' Trust of Boston, In¬

1(1)

Drug/Products

6(4)

Affiliated

Buyers

10,000
\ 500

balance

3(2)
6(3)
2(1)
4(2)
3(1)
2(2)
2(1)

Equipments. Sought

quarter, strongly regainedrNj*
popular were Radio Corp., bdught
by Lazard with 15,000 and by In¬ leadership; buyers including In*
vestors Mutual to the tune of 13,;
Continued on page
100; and Westinghouse, bought by
both Stein Roe & Farnham funds,
Energy Fund,. Tri, and others.
Continuing their ^previous popu- ■
larity, eliciting buyers only, were
I.T.&T. and Philips' Lamp Works;
buyers of the former including

among the initial commitments of
Lazard and One William Street;

1(1)
1(1)
2(1)

3,000
2,610
5,020
20,900

United Electric Coal___—

800

Ml)

-v-y; •":

The / glamorous IBM, which -wee
sold

■

:•j

■

Why not Got tho

INVESTMENT FACTS
about
SELECTED

AMERICAN

Investing for

Investing for possible
Growth?

SHARES-inc.

•

.a mutual

investment fond

which

supervises a diversiportfolio of American
aacurities, Selected for the possibility ef
long term GROWTH of capital—ami

6ed

entrant

INCOME.
:

Get the
*■

and

facts about

possible growth of principal

Get the

facts about

KNICKERBOCKER

GROWTH FUND

FUND

fied, managed investment in stocks

diversi¬
fied, managed investment in stocks'

selected

A Mutual Fund

TNfiOME-

Uamutud

Commonwealth Income Fond
land investing for current income.

for

offering

A Mutual Fund

diversi¬

possible GROWTH.

and

for

offering

CURRENT

—for FREE copy

other information—fill in
address

dealer

Exchange Place

•

or—

INC.

New York 5f N. Y.

and

135 S. LaSaile St, Chicago 3, 111.
Bmmmmmmmmammmmmmmmmmmmmmrnm

ree

either fund write your investment

nam*

below and mdIf to

INCOME

growth prospects.

KNICKERBOCKER SHARES,
20

coupon

Selected Investments Co.

prospectus

and other

SELECTED AMERICAN
CF-10-30

For free information booklet and prospectus
on

of prospectus end!

New.

Addrstt.

c*r—

iMf.

The Commercial and Financial Chronicle

(2002)
'

Thursday, November 13, 1958

r
w

Continued from page

eorporated

Foods Boy Aggressively
Midst Market-Business Rise

buying

Investors
Sold

300 of the latter.

Allied

were

33,-

Continued

balance

Associated

Stores,

Dry Goods, and National Tea.

•

than

:,*:•!•>*
\ ::"r-r>v%/■ ■
' "

managements

bought Republic Steel,
led
by
M.I.T.; the Tri-Group; Wellington;
Incorporated;
Lazard;
and One
William. Also in great favor was

14,600
14,700

America (16,000), even higher than in the preceding f7.7-1
3
both
initial
acquisitions;
there quarter, with Granite City a new¬
1(1)
were no sellers in this issue.
The comer, as was Inland. Reversing
latter is also true of St. Regis its
previous
negative
position,:. -1(1)
X;4(2).
Paper and Oxford Paper. The only Jones & Laughlin was likewise
1(1)
issue sold on balance in this group well-liked.
On the other hand,
was Union Bag-Camp.
Bethlehem
found
more
sellers ; J;

Mutual

(48,100);
Rowe
Price;
Delaware, both Stein Roe funds
and Selected American;
on the
other hand, M:I.T. closed out its
block of 57,000 shares.
t
„■
; '7
: ////'/. '■
■

Co.

;

Radio-TV-Movies in Fair

AmOng the oils the

most widely
included those Of

Standard Brands^

particularly in the
Group, National Securi¬

buyers,

Bullock

_ _

None

Trusts

.:fl
"27.200

>//l (if)

None
1,800

13.000

^l(ll)
-.2(1)

National Dairy

2(1)
6(2)

> 24.500

—

Pillsbury Mills—-1

Quaker

3(Z)

23.700

None

"12,000
(Refining)—l-^7S,300-•

General Foods

: :

_!1 - 9.40Q

500 >
'

1.900

Armour

None

7,800 '

None

•

^-Wilson

10,000
25,000

500

None

•-

Swift
-United Biscuit
United Fruit
-

54,500
10,700

■

than

International Oils Preferred

•

2(1) it j:r', '' 500
YT/ C .
6,200 vW 2(1)
-i^_r'None
; (Nohe

General Mills
National Biscuit

5,000
12,000

..——Sold-—

Allied Milis:c^_l^-jyi;j-:i_^L
Borden___
Campbell Soup _J_i:____l___r_:_
Continental Baking

13,700

2(1)

/-/'/VVrV-.v-.O'

"? V- 'T

Food' Products.

ment

;.l

a-x-p:

No. of •:
Shares

with its buyers including Investors

Highly Favored

less

page

—Bought—
,No. of

;

Trusts

Steels

from

Mutual
(4,200
shares), in the quarter under review it
'3
50,500
fundamental, Madison, Delaware, proved the most popular acquisi¬
; 4l (1) £
/ : '
400
tion.
Next best liked was Fibre- U. S. Steel, bought by Fidelity;
Lazard
(4,800), One William
2
:
••12,100
Street (10,872); and Stein Roe & board Paper Products, whose Tri, Incorporated, the Stein Roe
2
* 1,300
Farnham Stock Fund <200)-. Also purchasers included United Ac¬ funds, and also Lazard and One
24,000
cumulative (30,000) and Invest¬ William.
Interest in Armco ran ' ,,vf2
quite
popular
was- Burroughs,
vestors

...

>2(1)

T.300

J_-

,2(i)

3,000

'2(1)' 1

Demand

ties Stock, Sleeted American and
(X. Insurance—Fire -and Casualty
\t
v:.'" ' •''j "
Wellington.
1 X
interest
in
this
•-''l'''
700
Aetna Casualty.mi:-_w_:_l
the leaders with worldwide inter¬
1.600
1
group was evinced in Twentieth
national operations.
Once more
•*5,000
Boston Insurance. T;500 '
Textiles Bought
"2
^
'
the undisputed leader Was Royal Century-Fox in which Madison
11,500
Fireman'sFund_JNope
.None
Fund made an initial commitment
In this highly cyclical group,:-,
2
1,500
HartfdriT Firei__i_^L__i
None
None
Dutch, buying of which was ac¬ of
20,000 shares, while the Value with its delayed restoration of
celerated from the £ rec ed i n g
2
1,800
Insurance Cd.qf Nb". America^.J
None
None
Line Group bought 19,000 shares. earning power, American Viscose,
qtftarter. In fact, with 17 acquir¬
3(1)
17,600
Maryland Casualty.None
None
There was also a fair demand for turned out as
the
best bought
ing fund managements, it was the
5(2)
33,150
.Trhvelei-s'-r^J^
; 4,900
1
*
ABC-Paramount — partly also issue, its buyers including Fidel¬
most
3
;
' 2,200
sought-after stock of all
_U. S. Fidelity & Guaranty.. 2.900
? 1(1) ;
from the Value Line Group; and ity;
Affiliated;
and - de
Vegh.^ None C None. \Gdveriiment
the
September quarter,
Employees Insure5.400
:
for CBS, of which Madison Fund Stevens
and
United
Merchants ,x
followed in "buying interest by
1,500
.tidme murance —14.000 ; ,2(2)
Was the largest single buyer, and
found no sellers.
The two-sided:
Rdgwdjlic Steel <15 managements);
and
Axe were the transactions in Rayonier contin¬
^Insurance—Life ::V"
t '> f
General Motors, Standard Oil of Wellington
J
- ued.
; V..t.
' ;-"Vr
New Jersey, U. <s. steel (14 each), largest sellers.
^2(1)
'5,200
]Aetna' LifeL*ii_ii_ "1,100
2(1)
AiST. & T.f -Southern Pacific and
1<I)
v
400
Great Western Life Assurance,
475
,1 '•
Rails Resurge
GROUPS MEETING MIXED
Texas
Co.' <18
each).
Largest
3(1);
12,500
.LincOlnLJational
2,700
/1(1)
Interest in the carriers, which
buyers of .Royal Dutch included
REACTION
(3(2)
10,500
.National Life & Accident;—None
. None
initiated
during the June
Lazard (60,000); the "United Funds was
4(3)
(6,353
.U.:s; L.iferi^^:--—18,500
/1(D
quarter,
was
intensified,
along Agricultural Equipments Get Z
GTOttp/(56,500)'; M.I.T.; One Wil¬
liam Street <25,000 Oach)^
£ v
Machinery, Machine Tools'and Industrial Equipment
In¬ with the continuing cyclical re¬ Divergent Response>
vestors
Mutual
(24,600);
and covery in carloadings. By far the
Deere, which has enjoyed ris¬
•2(1)
4,500
Alli^-Chalmers
:
• iNone
None
issue
was
Southern
Dividend Shares (23,500 newly), best-liked
ing earnings as well as a financial
3(1)
42,000
.Bucyvus-Erie____^^;._-_"_"__;.:i_
None
None
Wfeile Incorporated Investors led Pacific, its 5 new buyers being
revamp, elicited an equal num-1
8(3)
55,300
Caterpillar Tractor
400
1
the few sellers with 22,000 shares. Loomis-Sayles, de Vegh, American ber of
1
buyers and sellers, 6 each.
5,000
Cbieago Pneumatic Took; 14.000
1(1)
Next in favor among all the oils European, Fiduciary Mutual, and Among the buyers
the largest
1(1)
10,000
Combustion Engineering!
11,900
1( L)
Lazard. Selling their entire hold¬
was
Standard of
were
New
Dreyfus (22,000); Selected Jersey,
3(1)
12,500
Cooper-Bessemer
None
INohe
ings were Axe B and Overseas American
which
in
addition
to
ranking
(25,000); and Putnam
2(2)
5,150
Cross Co._—___—__l
None
None
Securities. Runner-up in number
highly among the initial commit¬
(15,000 newly); among the sellers,
6(1)
78,200 - "Dresser.Industries
29,500
4(2)
of buyers was Southern Railway,
ments of Lazard and One William
Wellington /(67,800); Value- Line
3(1)
3,500
•Exf-Cell-0_--:__—I—
4,100
/2(1)
Loomis-Sayles and Lazard again Income
Street,
was
bought
in
large
(24/700); and M.I.T. (20;-.2(1)
3,900
Ingersoll-Rarid _!___
!_____
None
None
new
purchasers.
Illinois 000). On the other hand, a strongamounts
by
Investors
Mutual, being
3(2)
3,000
Jojf;iL__:___—
4,200
2(2)
Central
shook
off
its
previous
Chemical
liking was shown once more for
Fund, and Common¬
1
/
500
National -Acme
2,000
1
wealth Investment; with Selected neglect, its 6 buyers including the International Harvester, in which i
2(1)
8,000
/Singer Manufacturing-_ir__None
None
Value
Line
Income
Fund, and

bought issues

The

largest

—____

American

the

lone

Seller.

American

Selected

Also

established

-a

United Shoe Machinery—!™
"Worthingt6n^___!__—
Babcbck; & Wilcox

"4
16,900
de Vegh with an initial acquisi¬
new
position with 25,000 shares,
Texas, which
1
25,000
tion. Buyers of the 106,300 shares
followed by National
Securities,.:
concurrently performed outstand¬
None
None
of Union Pacific included M.I.T.;
Stock Series and M.I.T. with 10,ingly marketwise, finding its larg¬
Value Line Income Fund; United
est buyers -among the above000 shares each.
/ : :
mentioned m anagements.
Also Funds; and Lazard. Nickel Plate's
5(3)
30,300
sellers were Dividend Shares, the
weJMiked were Standard of In¬
Policies Toward Bank
4(2)
33,400
Scudder Fund, and Overseas Se¬
diana, - now vigorously pushing
4
Stocks Divided
27,900
into the foreign field, and Stand¬ curities.
4(1)
34,300
Bank stocks, so strongly liked
ard of California. Buyers outnum¬
1(1)
25,300
in the preceding quarters, lost a
bered sellers in Gulf, in which Mild Interest in Rail
good deal of their previous wellWellington and Putnam led V Equipments
nigh
uniform
sellers. On the other hand,
favor,
notwith¬
Socony
Buying predominated in
this
standing the prospect of better- 10(3) - 38,500
Was
tilted snore on the selling
group,
with
General
Railway earnings in the unfolding
->2,000
en-:, /a/
Side, with Wellington and Selected
Signal,
Pullman, and Westing- Vironment
of
8,000
American providing the
firming
interest ; 2(1)
principal house Air
Brake, in fact, finding rates and
2(1)
1,500
'growing loan volume.
liquidation.
no sellers at all.
Most popular during the quarter
3(1)
26,700
were First National City of New
5(1)
21,400
Papers Revived
■
Belail Trade Jn Fair Dcmand York and
1
500
Guaranty Trust. Opin¬

strongly favored

was

"Metals and

„

,■

tions! had

been

sold

previously,. sitions

the

former;

with

In-

divided

was

Mutual
Roe

AXE SECURITIES CORPORATION
IS

AXE-HOUGHTON FUND A, INC.

^ AXE-HOUGHTON

FUND B, INC.

^
Head

and

Chemical Corn

Marine

Investment;

and

with

■

the

and Irving, among others.
Selling
Chase
Manhattan were
with

INC.

":/

:•

CORPORATION

AXE-TEMPLETON GROWTH FUND OF CANADA, LTD.
Office & Order Room:

400 Benedict

Telephones: MEdford

1-2272

Ave., Tarry town, N. Y.
MEdford 1-4612

Teletype: Tarry town, N. Y. 1708
Branch Offices:
434

Camden Drive

2808 Russ

CUlumbus 5D250

Ty Williim St., N.Y. 5

Beverly Hills, Cal.

HAruwer 2-6962

BRadshaw 2-8258

Building

San Francisco, Cal.
'

EXbrobk 7-0715

1(1)
1(1)
1(1)
2 /

5(1)
' 5(2)

25,700

Metals and>Mining/--IJfickel

•

> •

••

>'•'

400

Falconbridge Nickel

600

80,900

International Nickel

7.500

70,000

American Smelting & Refining.
19,000
New Jersey Zinc.
.*_•
:—None
St. Joseph Lead
None
Vanadium.——
5,400

3(1)

Metals and

5(2)

7,900
21,400
.,1,000

3(1)

Street.

Containers and Glass

•

4(2)

57,500

5(2)
1

—_____

_______

American Metal-ClimaxJ-l_i___

600

delity, and One William; with its
largest seller being State Street,1,

4(2)

7,200
13,200
51,600
17,700
38,000
13,400
12,000
34,900

4(2)

34,025

which eliminated its 6,500 shares.
Also
liked
was
Owens
Illinois

by the newlyorganized funds. Pittsburgh Plate
Glass was bought by three man¬
agements; sold by none. As in the
preceding quarter, American Can
Was very much in disfavor, its 8
sellers
including Loomis-Sayles
(with a closeout of 13,000 shares),
and M.I.T. (35,000). Largest sellers
of Corning Glass were Wellington

page

;

3(2)
1

2(1)

1
1

None
-

None

2(1)

4,W0

Republic Natural Gas-.—

5,100

3(1)

43,400

Texas Eastern Transmission..-.

United Gas

2(1)
None
None
1

75.000

5(2)

38,000

Colorado Interstate Gas

El Paso Natural Gas
Houston CoiTp.
Lone Star Gas
Mississippi River Fuel_™___™
Northern Natural Gas—_______
Panhandle Eastern'Pipe Line__
Pioneer Natural Gas—
—
Tennessee Gas Transmission
Transcontinental Gas Pipe Line
Arkansas-Louisiana Gas——_—.
Consolidated Natural Gas
Gulf Interstate Co

6,500
1,000

4(2)

Gas

American Natural Gas_-_—_____

15,200

3(3)

3(1)

especially

Continued

Mining—Other

Natural

Libbey-Owens-Ford attracted 6
buyers, notably Fundamental, Fi¬

Glass,

6(3)

complete close-out .of
18,000 shares, and Investors Mu¬
tual
disposing of 26,000 shares;
while buying came in from the
United
Funds
Group
and One

' 1(1)
Nowe

Mining—Gold

1(1)

Heavily Mixed

AXE SCIENCE & ELECTRONICS

and

♦';

AXE-HOUGHTON STOCK FUND,

South American Gold & Platinum

Metals
•

ever,
Tri

KennetottrCopper—27,600
Phelps Dodge22
17.300

4,500

Stein

Investors Mutual

4(3)

—

20,000

■2(1)

Bridgeport,^rass!——;
6,000
Cerro de, Pasco____;;_l_i.-_____ :. 7,350
Copper Range
None
General Cable
10,000
Magma Copper
5,000
Miami Copper
5,000
Inspiration Consol. Copper
15,200

;

7(3)
7(4)
,3(2)

14,800

21,500

2
1

—

500

4(1)

selling side.
Sellers exceeded
buyers in Chase Manhattan, Han- £1;

William
.

Midland,
the latter growth situation's buyers including United Income and
Exchange

4(3)

" !.

/ Metals and Mining—Copper

•

AnaeohdaV-_l-----i--:-^----

ion

26.696

Mining—Aluminum

__ _

In -contrast to
the
preceding
Best liked in this group were
qqarter, the paper stocks regained Spiegel and Grand Union.
Dreystrong favor.
Whereas Interna* fus and Delaware took initial
po¬

" Reynolds Metals
____!____ 13,000
" U. S/ FbiT
3,000
Aluminium Ltd.
279,500
AliimijLum Co. of America-—j.33J200
K aiser rAXuhiinufhX. I!
_I_ !:
•
J5,000

3,500

2,500

5,000

,19,800
None
22,700

•

6,400
4,000
1,000
None
None
None
27,000
41,400
2,890
58,100
14,000
50,000

3(1)
None
2(1)
2(2)
2
1
None
None
None

8(2)
2(1)
2(2)
4(2)

2(1)
4(2)

Volume

188

Number 5794

The Commercial and Financial Chronicle

—Bought—^
No. ofi*

NoSof

Trusts

"•

i-iuV''

•1

Sold,

—Bought--

.hi

No. of

Office Equipment

No. of

Trusts

No. of

37,300 / ;

7(1)V

Friden
\r*XV '. '• 8,325
mm ;26,442' ■ / IBM;_/ ////.: /

25,000 :" Natibnai Casb-RegisterLii—_//
.Hi)- :i0,000 v Smitb-Gorona-Marehanti
_/
_

None

Addressogxaph-Multigrqph.

__ _ _

/2(1)

;

v};-

OH
2

•:

":yy.

'■;;;;
7(3)':

4
•'

40,200

Cbijftinental Oil
Gulf-Oil——

9(3).:. 71,650

•

-.1
/ i

—.

■■

54,500

Kerr-McGee Oil

2,000
2,900
37,400

2(2)

3 CI)// 10,400
;2(i)KV: 7,500

3(1)

...

27,600

—^

Idaho Power

Interstate Power
Long island Lighting—

11,000
36,750
'52,000

2,v /

:2-.■

15(1)

None
None
1

1(1)

3(3)
2(1) /

150

?:v 1

■

■/I://>•■-)

0,400

'3(1)
1(1)

'6(1)

•

None

Paper and Paper Products

~;y

6(2),

55,300
2,400
11,000

2
1

7(2)
3(1)
2(1)
2
5

•

2(1)

None

2,900

------

34,525
46,500
41,300
3,600
46,500
16,500

15,800
11,800
34,900

Fibreboard Paper ProductsGreat Northern Paper//-—_____

30,900

Oxford Paper
St. Regis Paper____

3,000

West

3,900

Westminster:Phper

3(2)

32.500

Union

1(1)
■*-

50^)00
36,900

and fGas,
___

4(2)

Rochester Gas & Electric

42,600

South Carolina Electric & Gas-West Penn Electric

1(1)
3(1)

"1,900
6,000

7,700
46,700

37,300

4(1)

6,000

112,500 ' American Tel. & Tel.——
36,300
General Telephone
—
1,500
New England Tel. & Tel..
29,700
Western Union

13(3)

3(1)
1

•;

None'/

//i.v-.;'
j / rv

•.

13,900

seller of 50,000
„

■

/ \

>,•'-

•

►

exchanged for Standard-Oil-dN.-J.').■ '■ ■
' ''' :
125,000 shares received by Massachu«et;ts .Investors
in exchange for 100,000 shar^s-oi-Humble Oil?& ile5ning.

700

•-

'a:s Poss'We,

possibilities.

erotptch,

2,000
5,100

74,500
19,000

Seaboard Air Line—

13(5)

120,200

8(2)

86,700

5(2)

106,300

5,900

3(2)

None

mfc

;

Northern Pacific

79,300

23,500

««
2(1)

300

broadway, Camden 3, N. 1.,

—

Southern Pacific

Southern Railway
Union Pacific

——,

Western Pacific

—-—

None

WHY NOT
INVESTIGATE

ELECTRONICS

FUND, INC.

General Railway Signal

20,200
10,000
8,000
3,000
43,500
2,000
6,000

ment Fund wtwse
assets are primarily

invested for possi¬
ble long-term

growth of capi¬

tal and income in

1(1)
1(1)
2(2)
7(2)
1
1(1)

companies actively
engaged in the Elec¬
tronics field.
Get the

Booklet-Prospectus of this

Mutual Fund

now

from your invest¬

ment dealer or

3(2)

7,100
Nope

1
None

None

Union Tank Car,

11,200

9,000

Westinghouse Air Brake

None

ACF Industries

9,200

—

A Mutual Invest-

Television Shares

Management Corp.

General American Transportat'n

—

)

None
1(1)

30,600

N. Y., Chicago & St. Louis

2(1)

None
1,600

1,000
•

Interest Yon?

1(1)
1
1(1)
None

9,200

Kansas City Southern

Pullman

Pissiifitiesii
ELECTRONICS

1
2(2)

None
1(1)

10,200

2(1)

27,700-

4,300

2(1)
2

Delaware Distributors Inc

Oo tbe

3(2)

Railroad Equipment
,

Nationally disttibutod through inveifmont dealers by

2(1)

56,200
—

Norfolk & Western

involved.

Dtqu„,

67 WALL STREET

NEW YORK 5, N. Y.

TELEVISION-

Great Northern

4(1)

commensurate ■

with the risk

,Pr9^ctu«onPequesf

—

33,200

'5(1)

Twentieth Century-Fox
Zenith Radio ——

2(2-)-'

selected
for their INCOME
and APPRECIATION

25,000

,:/6(3)//; 20,5QO.? Illinois Central
h/v.2:J .:*//■..-.:i,300
Louisville & Nashville

.X\

securities

25,000

—

Storer Broadcasting

37,500
30,000
16,500
12^500

V ;4(l)

(ware
for 3S
f)lgh\~
CURRENT INCOME'

3(1)
1(1)
4(2)
4(2).

—

Atchison, Topeka & Santa Fe__ 115,000
Atlantic Coast Line
1.000
Baltimore & Ohio——
12,300
Chesapeake & Ohio—
—
10,000
Chicago & North Western
3,800
Chicago, Rock Island 8c Pacific
2,000
Denver & Rio Grande Western
None

85,000
12,600
28,500

6(2)
2(2)
"

•

2
3
2(1)
1
1(1)
2(1)
1(1)
1

Railroads

;

| investing in diversified

43,500
1,300

25,000

Trust

MANAGEMENT, INC.

Investment

•

3
-!■<

RESEARCH

7,600
25,300
6,950
24,655

5Plus

from

2(1)
1(1)
1

6,200

American Broadcast.-Paramount
Columbia Broadcasting "A"—
Columbia Broadcasting "B"-'
Disney (Walt) Productions

Motorola

17,300

5(2)
2(1)

••

•

500

/3(ir

shares bought £135,000 of convertible

;// 10,900

•

1 (1) d.

9,000
25,400
1,000

Magnavox

42,500
24,840

V'iM/7' '':::i2,580'/

■*-' r>-

.1(1):

37,400

Powerr_p_-_ 1

Radio, Televisiou and Motion Pictures

55,000

Baltim^re)Gasr& Electricf/____-

upon request

investment dealerf

your

Public Utilities—Telephone and Telegraph

3(2)

Prospectus
from

FUND

San Diego Gas & Electric------

35,500

_ —

CalifoialLa>El^ctri<r

33,100;.

m
m

2(1)
3
3

—

None

Etc. /-

fNot

5(1)

18,800
12,000
15,800
76,100

2(1)

18,900

13,000

BafgrCamp Papqrz—

Uiflities^rEiectric

T _

1(1)
'♦However,

43,100

3(1)
2
4(2)

None

1(1)

None
52,700

Amei:^am& Foreign:pbwie^_
AnizoiiaPpbliciService

3(1)

bonds.

5(1)

Public Service Qf Indiana—

/ 3,(1)
•>Public

49,600

INC.

6(3)
4(1)
7(2)

None

Virgiili^ Pulp & Paper_i__

FUND

4(1)

i 15,000

Scott Paper—5,000

1(1)
2(1)

'None

4,180
8,000
13,500
None

4(2)

1(1)
3(2)

9,500

Kimberly-Clark
Mead Corporation

17,000

None

100

Hammermill Paper ___—1__
International Paper

PIONEER

3,300

—

:2(l)
3

2(1)
4
2

22,000
2,300

NATIONAL DISTItltUTOn

ill)

Champion Paper/& Fibre-----1Container: Corp. of America___
Crown Zellerhach
i'SJ'Ja

55,100

1(1)
None
2
2(1)
1
None
1
1
/
3(2)

Ohio; Edison
Peoplbs Gas Light & Coke
Public* Service of Colorado.
Public Service Electric & Gas--

2,000
1,000

6$ |ot| IN Stfooi
Hm* York 17, N. V,

None
13,000
25,500
4,000
None
10,000
8,500
40,000

•lAntriM

None

26,956
10.900
57,800
25,700
22,800
37,800
5,500

Kansas City Power & Light
Middle South Utilities——

500

INVESTORS PUMIHN6 CORN.

15,000

•

12(7)1; 41,000

Prospectus and Literature
■\
item { ;
,

None

Niagara Mohawk Power

None

1
2

Commonwealth Edison
Florida Power
General Public Utilities——
Illinois Power
Iowa Power & Light-Iowa-Illinois Ga$
Electric

None

Columbus & Southeim Ohio Elec.

1,000

1
1
;
1(1)
2(1)
2(1)
1

Columbia Gas System.—----- 104,692

32,600
5,100
66,000

4(2)

——

Central Illinois Public Service—

;/i (ijt^AflOfr

*2(1)

■

lfibO

1
3(1)<

Washington Water Power—
19,400
Wisconsin Electric Power
101,000
American Electric Power——
6,751
Central Hudson Gas & Electric—
21,000

15,100
:

67.300 '

—

■.<$&? i •''f//-;"4}iOO:v: Cincinnati Gas & Electric.

,400.
\

None

•v'/Noiie-•/

Tampa Electric
Texas Utilities
Union Electric (Mo.)
Virginia Electric & Power
—

21,000

None

/None/
5,000?

15,800
12,000

•/.

Southern Company
Southwestern Public Service..—

4,000
59,000

3(1)

8,000

Sierra Pacific Power--.—
Southern California Edison

6,000
11,200
12,100
"

4(2)
2(2)

•

1(1)

Public Service of N. H.~~

34,500
.58,500

•

1,100

4(2)

42,000

„

5,000

3(2)

•

9,800
/ None

20,000
Louisville Gas & Electric
20,000
Montana Power9,000
New England Electric System
56,745
New England! Gas & Electric
36,600
New York State Eiec. & Gas
22,000
Northern States Power—
8,000
Oklahoma Gas & Electric—
None,
Pacific Gas 2? Eleetric——
None
Pacific Lighting
2,000

GENERAL

14,000

,47^500
15,000
•
8,200
16,300

14,000

——

4,000

•

DuquesneLight
Florida Power & Light—20,500
Houston Lighting & Power—
10,000

/!; > / 30,000

\U.

— — —

9,500
39,400
1,100

500

for Income

None

3,000
5,000

26,600

3(1).
8(2)

•/

Atlantic; ;R
.35,700;, ■■>4(2)
__/
British Petroleum
_____—____
55,000, **2.(1)
Humble Oil & Refining-■y44,000
3(2)
lntex Oil
2
1137,300
Plymouth Oil
1,960
2(1)
; 17,700
Richfield Oil
3(3)
Socony Mob'I Oil-—--------- 100,050
8(1)
Union Oil of California---4(4)
35,981

None

& Qii_JjiL_

•'

'4(2)/ /
■

500,

Tidewater: Oil; —
Upion 0il, & Gas of La?_r—_
Ahierada^Pattpleum -1—1---—
Arkansas, tfmi'Qil---—------i_

None

0(1)

None

■

Dayton Power & Light„
Delaware Power & Light

21,900

1(1)

None

9,500
12,000
2,000

27,500

////

None

___

None

/18,075

3(2)

;

13,000

—

None

l|/:/ //3(l>r//2^700
2(1)
28,000

34,500
15,900
26,800

—_

Texas; Pa^ic-tipal.
<

None

Cuban Electric

;35,500
165,000

3(2)

None;

Qompapy _———
Texas NatdiaP Gasoline/

4,000

2(1),;

Texas

83,500

None-

_ _

None

None.

Sunray Mid-CoritirientOil— _;_
Superior:Oil (Calif.) /////—/:.,:/

2(2)/, "12,600
3(f ) / :13,Q00

Standard Oil (New Jersey),
Standard Oil (Ohio)

300

Standard Oil (Indiana)

•

None

Southland Royalty
~
Standard Oil of California-

•

1/ fi;

Sinclai r Oil———Skelly Oil
/

2(1)/

•i

—'

r___3_——___r
Signal Oil & Gas———

81,500
11,300
3,440
10(1),, 59,000
10(5)
142,500
14(2)«§129,923
3(2)
47,700
109,600
: 4(1)
2(2)
1,000
•13(4)
95,755
3(3)
72,700
: 2(1)•
72,700;
'*<■

None.
:4

10,000
12,000
18,500

Shell Oil

35,100

6(4);,
.

_ _

40,855
3

Ohio Oil

1
Nohe

Consumers Power

15,502
None
18,300

/ I

29,000:

Consolidated Edison (N. V,)/—

;

l-r//

3,307

Community Public Service—

10,427;

? 4(2)

None

__—_____.__

Phillips Petroleumr—-—/___
Pure Oil
_//// 't& /.1//——
Royal Dutch Petroleum —/
—

260,200
,

___

LOuisiana.Xand & Exploration—
■

7(3)

15,500
11,000
15,000

_„__

-Monterey

6(2),; 137,600

17(6):
5(3)

______

;—

Hudson's Bay Oil.& Gas__—,
Kern County Land————

500

4(3) /
2—/

—

' X-r
1(1),

f3(3) !

2(1)"

23,000
45,621-'

Honolulu Oil

•

25.800

Trusts

3,000
30,000
, None

;

/,l/r;/t/;:a00,'

2,000

—_ _

—

Hanebck Oil— //___

5,500
28,000

:4(i)o

2(2)

C'~J

Anderson -Prichard—l'
.Cities: Service-_ /'ili/—■_

3,200'

29,814

: ^

A(4)\
2(1)

;

No. of

Central Louisiana Electric—
Central & South West—
Cleveland Electric Illuminating-

/6,0Q0
36,100
21,500

None

: 1,245
33,000
1,250
9,810

Kir

2(2)^:".

None

No. of

;

15,000

1(1)
4(2)
3(1)

•

■■

No. uf

;

Trusts Z^iiures

' *

(2003)

Continued

•

on page

135 S. LaSafle St, Chicago

3, IH.

115 Broadway, Now York 6, N.Y,
Na»»o

i ■

Addrott.

Qty-State.

The Commercial and Financial Chronicle

(2004)

Continued

Forms First Inv. Planning

from

JWASHINGTON, D. C.-^Jerry C.
—Bought—
Spellman is engaging in a securi¬ I No. of
No. of;;
ties business

offices at 1500

from

Trusts

Massachusetts Avenue, N. W., un¬
der the firm name of First Invest¬

Planning Co. Mr. Spellman

ment

has been with Sade

■

•

2(1)'

Co.

J. M. Sheffey Opens

)

WESTFIELD, N. J.
Sheffey is engaging in

40,100

2(1)

securities

51,200

8,800

John M.

—

1,700
15,000

2(1)
3(1)

5,000

2(1)

9,700
3,500
34,600
3,000

business from offices at 550 Birch

Avenue.

3(1)
2
2

5(2)

:: *

8,500
10,000
59,900

Retail Trade

•

•.

Spiegel

49,400
6,700

Woolworth

20.500

Allied Stores

1(1)

None-

33,340
8,560'

5(2)

PHILADELPHIA

39,718 *
34,700

5(3)

3(2)

FUND

37,500

Fund

V. S. Rubber................'

Request

1(1)

DISTRIBUTOR.

(established

•

isei)

•

Members New York Stock

:
I

Exchange

St., Phila. 9, Pa.

•

*
•

Klngsley 5-3311
NAME

•

ADDRESS.
CITY

69,400

..STATE

2(1)

1(1)
6(3)
6(2)
4(2)
15(5)

1
I.
3(2);
1(1);
None
None
1
3(1)
3(1)
1
;;
3(1)
None
None
.

—

_______

2(1)
14(3)

3
i
6(2)
,

Textile
1

5(2)

Celanese

20,383
7,200

Rayonier
Stevens (J. P.)_

2(1)
3(1)

Massachusetts

_i—_

—L.J.

United Merchants & Mfrs

5,000

38,000
None

Life Fund

1
4

4,500
42,100

for distribution of income and prin¬

24,200

•

3,000

American Tobacco

Lorillard (P.)

36,000

Air Products

2(1)

19,100

American Bosch Arma

300

3(1)
2

2(2)
3(1)
2(1)

C/Cos/u'/uf.Zfff*
cCci>i/iany, Trnttt

12,100

your

Eastern Industries

Gillette
Glidden

Fansteel Metallurgical
General Time

21,400
25,600

__.

2,000

Halliburton Oil Well Cementing

1(1)
None
None

1,000
3,000
10,000
6,000

1
1
1

1(1)

5,000

2(1)

2.000

17,700

Hertz

17,000

McGraw-Hill Publishing

7,000

2(2)

Metals & Controls

None

2(1)

12,600

4(3)

LONG-TERM GROWTH?

6,000

6(2)

Interested in possible

116,800

...look into

ABERDEEN

2(1)

FUND

3(2)

25,000

3(1)

8,600

-DAVID L. BABSON
MANAGEMENT

Dept. CFC-62

15 William Street, New York 5 I

Please send Aberdeen Fund
Prospectus,

City

Street,

Group > and
being the larger
former, and National

Securities Stock and Delaware the

larger sellers of the latter), /

Natural Gas Divided

'//!

Still-pending court proceedings
continued

the

Evincing the cyclical shift from
the

defensive area, foods became
devoid of managements' interest.

Among the better liked issues was
Continental Baking, acquired by
Tri-Continental to the tune of 33,000 shares. Heavy liquidation con¬
tinued in Corn Products, prior to
its merging with Best Foods. Also
in general disfavor were General
Foods
and
National
Dairy, the
former
closed
out
by
Selected

natural

cast

shadow

stocks.

gas

over

None

with
Scudder
Fund
it
newly.
Selected
also

its

reduced

hold¬

liquidation

buying occurred, heavy
came into Arkansas-

Louisiana

Gas,

tural

Gas

Gas.

Metals of Mixed Popularity
In

this
for

period
metals,

and

of lagging de¬
with first evi¬

Consolidated,

Investors
shares; of Re¬
public,
Incorporated
Investors
36,000 shares.

Domestic
the

Oils Whipsawed

absence

tudes

strongly

part * of portfolio
Relatively well liked

ice,
with

Shell, Signal (to be merged
Hancock)
and
especially
Mid-Continent, the last-

Sunray

Fundamental

finding its largest buyer in
establishing a new
no less than 96,000

position with
shares.

New

names

in investment

U. S. Foil,

portfolios and bought in
good-sized amounts were Kern
County Land and Texas Natural
Gasoline.
On the other hand, li—
quidation was rather heavy in
Arkansas Fuel Oil and Unidn Oil

while the opposite took
Aluminium Ltd., Alcoa
and Kaiser.1 The unusually heavy
in

Aluminium
Ltd.
was
led
off by
the Tri-Group,
with
closeouts
aggregating not
less than 183,000 shares, joined by
Fundamental (40,000), the Adams
Express Group (34,500) arid oth¬
ers; Loomis-Sayles was one of the
few buyers, with 14,400 shares.
Contrariwise, the Tri-Group was
the largest buyer of Alcoa (31,000
ical

Fund

and

others

sellers.

company

California, with Fidelity Fund
closing out its 20,200 share inter¬
est in the latter.
Policies toward
of

Atlantic

Refining and Amerada
mixed, with sellers slightly
outnumbering buyers. ■!

were

Selling Gomes Into the

Utilities
The shift away from the
defensive
groups

and

"money

toward

the

stable,
rate"

cyclical

Complete Catalogue of
Dealer Services for the

I
I

1(1)
1

1,000

Harbison-Walker Refractories__

2,200
7,800

1(1)

None

3(2)

3(1)

Development of MUTUAL FUND SALES

4(2)

7,000

Minnesota Mining & Mfg

6,200

25,700

McKesson & Robbins

5,000

Newport News Shipbuilding

5,200

Polaroid

7,200

I
I

4(1)

1,500

2(1)

Forms Bond & Share Corp.
ALTADENA, Calif.

—

Jeanne

A free copy

will be

sent

our new,

comprehensive catalogue

principals. of established dealer

Form Hannibal Associates
Hannibal

Associates,

Wilkins is engaging in a securities
business
from
offices
at
3479

been

formed

Wall

Street, New York

Canon

engage

name

Boulevard under the firm
of

Bond

previously

Share
...

with

Co.

She

Dempsey-

Tegeler & Co. and J. Logan & Co.

with

has
99

firms.

Just

ask

for

copy

your

business

letterhead.,

I
I

City, to
business.

-5?" ®oris>
Boris, Vice-Pres-

securities

+.afe
President; Israel

Inc.

offices

;

the

I
-

;

en¬

Continental Oil, Cities Serv¬

named

cyclical recovery becom¬
only late in the
quarter, aluminums and coppers
met
with
decidedly mixed re¬
action' on
the
part of portfolio
managers. Among the aluminums,
buyers exceeded sellers only in
Reynolds Metals and its parent,

couraging earnings prospects, the
preponderantly domestic oil stocks
were
subject to conflicting atti¬

ing

apparent

Consolidated Na¬
Republic Natural

Mutual sold 33,000

managers.

None

Webster

buying interest

sizable number of man¬
While in a number of

any

issues fair

were

None

Wrigley (Wm.), Jr

state.

Bullock

Fund

sellers of the

CORP.!

Name..

(the

Scudder

agements.

dealer

side

Foods Mixed

1(1)
your

fact,

Dodge the attitude
much divided and, • in
leaned toward the- selling

None

today to:

Phelps
very

these stocks found

None

Simmons

lfiOO

Magma,

None

Stone &

and
was

(21,300);

(25,000),
equally

for

only one seller (United Sci¬
ence). But toward big Kennecott

lai'ge purchase from M.I.T.

Procter & Gamble.:

1,000

Fidelity

was

offset

shown

with

1(1)

Revlon

None

seller

although

1,700

Philadelphia & Reading-

57,700

mail coupon

others.-

of Household, Wellington

21,000

None

Credit,

200

Perkin-Elmer

3,400

None

8,000

Outboard Marine

26,500

None

Newmont Mining

7,000

2(2)

Prospectus from

selling

shares), offset, however, by Chem¬

2(1)

Haloid Xerox

and

Finance, and important
occurred in Commercial
Household - Finance and
Of Commercial, the larg¬

liquidation

None

5(3)

Mass.

400

___

Donnelley (R. R.) & Sons.

DISTRIBUTORS
Statu Struct, Bo axon

3,000
None

MASSACHUSETTS LIFE FUND

Colgate-Palmoline

34,500
11,300
2,900
4,300

2(1)
3(1)

Investment Dealer

Brunswick-Balke-Collender

250

30,900

6,800

None

1,500
10,000

American Express
American-Marietta

Investment

Beneficial

larg¬
(20,000).. Second' best

was

place

1(1)

None

American Chicle

6,500

Founded 1818

37,000

Selected American the

buyer

dence of

35,000

divided

was

ing of National Dairy.

17,300

2,800

Associates

about

American

None

17,000

opinion

Miscellaneous

Finance,

American,
acquiring

3(1)
None
None

- 500
None

individ¬

for each investor.

Prospectus from

Despite the prospect of improv¬
ing consumer installment busi¬
ness,
finance
company: stocks
found little receptiveness among
the fund managements during the
quarter. While there was some lim¬
ited liking for C.I.T. and Pacific

mand

Liggett & Myers
Philip Morris
Reynolds Tobacco

1(1)

fftttutance

with

2(2)

None

Among the coppers," Anaconda
easily the best liked issue,

est

4,800
12,000
6,800

Tobacco

A balanced mutual fund providing

ual trust account

10,500-

4(1)

American Enka
American Viscose

2(2)

cipal in accordance with

5,000
90,000

sale

demand

-////;/_ L.;/-.

—.

7(3)
4(1)

% '

Iron

and

contrasted with an 11,000
by Fundamental In¬

vestors and with closeouts by two
others.

Finance Companies

/:■■

—

newly)

was

.2(2).

4
J
None
2
)
6(3)
5(2):

Solitary buying of Kaiser by In¬
corporated Investors (25,300 shares

International.

'•Tv;,.;

and

Fund

Divided Attitude Toward

3(1).

14,476

.....

Buy Aggressively

Eaton
&
Howard
(in
a
5,200-share
closeout). Owens-Corning Fibreglas was eliminated by Chemical
Fund, Adams Express, and Bul¬
lock; and also sold by American
(9,800)

Stock

4(1) :

18,800
103,200
57,000

5(2)

123 So. Broad

6,000

Allegheny Ludlum Steel__.
500
Armco Steel
34,550 :
Crucible Steel
10,000 ;
47,500 ' Granite City Steel
None
27,100
Great Northern Iron Ore
None ;
25,000
Harsco
3,000;
27,900
Inland Steel
15,500
73,200
Jones & Laughlin Steel——> 27,960
83,000
National Steel
3
1,700 ;
246,800
Republic Steel
_>
8,400
1,500
Sharon Steel
None ;
6,600
Signode Steel Strapping-None
135,600
U. S. Steel
7,200 •
33,800 ' Youngstown Sheet & Tube_-^_iliii' < f 500
29,000
Bethlehem Steel——————
53,700

2(1)
9(2)

•

——

9,200/.
5,800 :

page

Midst Market-Business Rise

None
1(1)
None
None
None
None
None
1(1)
None
None
None
1
2(1)
2(1)

est

•

9,000

—6,500 :

___________—_—>

Steel

A Mutual Investment
on

Firestone Tire & Rubber_______.
8,600 I
General Tire & Rubber—_—_'
None
Goodyear Tire & Rubber—3,000 :
Goodrich (B. F.)__
45,300 /

INC.

Prospectus

None "
2,600
None
None
None .
None
None ;
4,000
None
None
None
2,000

from

Funds

N o. ofNo. of

Rubber and Tires

«.

6(3)

Associated Dry Goods—L

National Tea

3,100

3(1)

Continued

J Shares ; Trusts

——

None

Federated Department Stores—.*
First National Stores
Gimbel Bros
Grand Union
Green (H. L.)
Macy (R. H.)
____________
Marshall Field —
May Department Stores
Mercantile Stores
Montgomery Ward
Penney (J. C.)——
: Safeway Stores
u.
______
Sears, Roebuck
-—-___
-

2
••

■:

if/;. "t: I

'■"'v

1(1)

Sold
;

Shares '

page

Thursday, November 13, 1958

....

ident, and Miriam Goldstone, Secretary.

I
I
I

Members: New York Slock Exch.

KALB, VODRHIS & CO.
1037 WOODWARD BLDG.,

Amer. Stock

Exchange, (Assoc.)

WASHINGTON 5, D. C.

Volume

Number 5794

188

industries

its

left

mark

course,

rio

means

exclusive trend.

ican

Tel.

position

The Commercial and Financial Chronicle

Tobaccos Trendless

of
uniform

was,,

;

WorMfcnktoMI

Philip Morris
and Reynolds (the former-by the
National
Securities
Group,
the
latter largely by the United Funds
Group) contrasted with liquida¬
tion of American Tobacco (largely

its

of the stocks best

one

liked by

Our

Electric

Gas

lated

block).

stimu¬

was

by the rights offering

dur¬
ing
the
period under
review,
although
United
Science
Fund
also established a
new
position
with 20,000

lower

reports,

earnings

the

was

ized

funds

William Street and Madison Fund

Mutual,

the
larger
buyers);
Houston
Lighting & Power, Idaho Power,
Southern Co., Southern California
Edison, Tampa Electric and—as a

American.

name—Cuban

new

liquidation
shares

Gas

alone

Niagara

Electric

Service

Public

and

65,600 shares of the last named.

Considerable Selling of

prevailed
toward
this
group, and only the likes and dis¬
likes with respect to individual
stocks

General

Firestone,
Goodyear met with

This

and

between

shift

tend

quarters.

continues to be the

time

With

positions

and

Nonetheless, there has been

advances

with

the

12 Federal
;

Tmw

Company,

can

a fairly tight rein will be kept on
time, through the medium of open market
also be observed by the way in which the free

considered to be in line with the policy which is

are

the December

It is evident from past experience that the Central Banks are
mainly interested in exchange maturing issues for Treasury ob¬

ligations which have about a year
maturities the regional institutions

position to influence the action of the money market in the
;
"

direction which is desired.

members

the

With

Impact of Possible Long Bond

underwriting

group,

in the

subscription by under¬

and

dealers

ously

bought

rities.

sell

World Bank

secu¬

•

Special to The Financial Chronicle) V

BURBANK, Calif. —Donald M.
Dilts has been added to the staff
of

Nielsen

Co.,

362

East

Olive Avenue.

Harris, Upham Adds
(

Special to The Financial Chronicle)

STOCKTON,
Harris,

Calif.

Upham

—

the maturity

extend

Co.,

Lloyd E.t
East;

340

'I.

■

Joins Fusz-Schmelzle
(Special to The Financial Chronicle)

ALTON, 111.—William J. Fisher, '
been added to the staff ot

Midwest

the

Stock

8417 Beverly Boulevard.

(Special to The Financial Chronicle)

Calif.—Edward

Edison has become affiliated with

MacCormack

Co.,

with

rather limited offer on an

market, since a higher rate for a Treasury obligation would
about higher yields for corporate and tax-exempt bonds.

453

South Spring St., members of the
Pacific Coast Stock Exchange. He

formerly with Morgan & Co.

with Quail &

With

Co.,
was

Co.

201;

Inc.,

formerly;
f

Hugh W. Long & Co.

ALAMEDA,

Calif.—Richard
been

Long & Company, Inc. one

ofj

America's
sponsors.

leading

fundi

mutual

He will make his head¬

quarters in Alameda, Calif.

bring

Views

rities

Desirable Refunding Terms

the Treasury

Because

the

has been able to sell short-term secu¬

raising of its

new

money

without adding in any

is believed by not a few
experts on Federal financing that short-term issues should also be
used to take care of the December maturities that are held by
others than the Central Banks. Some opinions are being expressed
than

obligation or obligations

way

refunded.

and

FEDERAL AGENCY

similar in character to the out¬

standing 2-4s and 21/2-5s, convertible at
could be

U. S. GOVERNMENT

to the money supply, it

way

the option of the holders,
maturities could
reopening of some of the

Securities

in which part of the December

There

might also be a

outstanding issues.

Lawrence
Lawrence
a

Doyle Opens

ISLAND

securities

business from offices

Form

Sterling Associates

(Special to The Financial Chronicle)

LOUISVILLE, Ky. — Theodore
Calif.—Walter
J. Gilgert has joined the staff of G. Durham is now with Berwyn
T. Moore & Co., Inc., Marion E.
E.
F.
Hutton
& Company,
623
South Spring Street. Mr. Gilgert Taylor Building, members of the
Midwest Stock Exchange.
was formerly with Sutro & Co.

business.
Squires,
President; Jonathan G. Gullick
and
W.
Olin Nisbet, Jr., VicePresident, William R. - Hackney,
Jr.,
Secretary;
and
Robert S.
Abernethy, Jr., Treasurer.
James

Aubrey G. Lanston
8c Co.

With Woolrych, Currier
(Special to The Financial Chronicle)

to engage in a securities
are

(Special to The Financial Chronicle)
'

LOS ANGELES,

CHARLOTTE, N. C. —Sterling
Associates, Inc. has been formed
with offices in the Johnston Bldg.
Officers

With Berwyn T. Moore

Joins E. F. Hutton

CITY, N. Y.—

G. Doyle is conducting

at 42-33 Twenty-fourth Street.

appointed

has

Janusch

■

ANGELES, Calif.—Daniel

LOS ANGELES,

distant maturities of the Government have been

action that the Treasury, even

East Broadway.

It is obvious from the way in 4 regional representative for Hugh]

capital market is general.

and the

SAN
Carter

DIEGO, Calif. —John G.
has joined
the staff of

Woolrych, Currier & Carlsen, 233
A

Street." He was formerly

Eastman
& Co.

Weber Avenue.

Fusz-Schmelzle

handled, that

sector, appears to be subject to consider¬
It is evident that the Treasury would
of. the Federal debt, but conditions
have to be favorable for this to be done in a manner which will
not have an adverse effect on the outstanding longer-term issues,

Bennett-Manning

LONG

of the refunding will be

As to how the balance

Bishop

(Special to The Financial Chronicle)

LOS

Corporation

1960.

has

Exchange.

Peoples Securities

New York 22, N.

optional refunding deal, will have to make the coupon rate of a
longer-term obligation very attractive in order for it to be a
success.
This could have an adverse effect on the whole capital

was

Corporation

of the

to run. By staying in the short
evidently believe they are in a

Co., Northwestern Bank Building,

Evans

136 East 57th Street

Dec.

Moran has become affiliated withi

maturity.

which

Peoples Systematic

Peoples Planning

through

It is expected that the managers

(

impending refunding operation of the Treasury continues
to hold the spotlight even though the current new money raising
venture has been taken care of. The $12,000,000,000 maturity of
the Treasury is expected by most money market specialists to be
taken care of by way of an option offer to the owners of the issue
which are coming due next month.
There seems to be rather
widespread agreement that a one year obligation will definitely
be a part of the package deal. Such an obligation would take care
of the needs of the Federal Reserve Banks, the largest holders of

John¬

With Evans MacCormack

com¬

real penalty

of the member banks will be allowed to fluctuate within

appreciable

investment

MINNEAPOLIS, Minn.—Thomas
W. Rutter is with M. H. Bishop &

pany,

with
a
diversified
portfolio of companies se¬
lected for possible growth
of capital and for income.

dates

;

The

Building.

Shapiro has been added to the
staff of Bennett-Manning Com¬

mutual

2%%, it is not

....

With W. G. Nielsen

pany

...

Refunding Operation in Spotlight

(Special to The Financial Chronicle)

able amount of conjecture.

A. BAILEY & CC

institutions which have not previ¬

limits which

Investment

accumulation of shares

minor increase in discounts
Banks, including the

writers

reserves

to the staff of South¬

With M. H.

Send for FREE Prospectus

Programs

bonds, the privilege of making
delayed payments, giving them

is the privately owned

in¬

for the

previous to the 1xk% level.

operations.

income,

Investment

issues, the bank, in
offering bonds for
regular delivery, will extend to
certain institutional purchasers of
to

bonds for

growth of capital and

GEORGF

As in recent

addition

at this time.; It is evident that

INVESTORS

sinking fund commencing June

1, 1964 and calculated to retire
50% of the issue prior to maturity.

the money market for a

South Ninth Street.

appear

MINNEAPOLIS, Minn.—Victor
J.' Lyons
is
with McKendrick,
Haseltine
&
Wilson,
Inc.,
114

SOVEREIGN

Dealer

The bonds will be non-callable
for the first ten years except for

interest of broadening the market,
will again reserve a portion of the

(Special to The Financial Chronicle)

or more.

from your

of The First
Morgan Stan¬

to indicate that the monetary authorities
do not want to tighten the money and credit picture too severely

better

amounts of $30

and

Reserve

With the discount rate even at

rate, which would

With McKendrick, Haseltine

accumulated ia

management

Boston Corp.
ley & Co.

the selection of specified delivery

New York institution.

systematically

nationwide
of
dealers

the

Craig-Hallum

Investment

ern

ston

Shares may ba

in a diversified
group of securities selected
for possible long terra

joint

strong in

This is taken

amount

Banks.

MINNEAPOLIS, Minn.—Thomas
P. Burns has been added to the
staff of Craig-Hallum, Inc., 133

been added

vesting

This is not the first time that the New York regional institution

Greene and Jack N. Hendrix have

FUND

principal

15-year bonds due Dec.

has given indications it might not be in full agreement with the
action taken by the Federal Reserve Board and the other Central

(22,000).

MUTUAL

yes¬

commercial banks under the

and

Penalty Rate

Central Banks that had hiked this rate

selling exceeded buying de¬
cisively in Goodrich and U. S.
South
Seventh
Street.
He was
Rubber; of the former, the Bul¬
lock Group was the leading seller formerly with Reynolds & Co.
(19,700 shares), while in the lat¬
ter sales by the Tri-Group (36,Two With Southern Inv.
900) and by Fundamental (24,000)
(Special to The Financial Chroniclis) »
outweighed initial buying by In¬
CHARLOTTE, N. C. —Paul P.

41/2%

1,
1973,
through
a
underwriting
group

best hedge in a period like this one.

Not

$100,000,000

The Federal Reserve Bank of New York last week moved the
discount rate up from 2% to 2%%, thereby joining the other 11

(Special to The Financial Chronicle)

ever,

Fhoo of Penmeylvania Personal Property

announced

being carried out by the money managers.

favor, espe¬
cially on the part of the big new
funds (except in the case pf.Gepi
eral). On the other hand, how¬
strongly pronounced

vestors Mutual

one

Co.

(5,500).
Minnesota Mining, desspite its continuing Blue Chip
popularity with the public, was
again liquidated; the liquidators
including National Investors, Se¬
lected and Wellington.

attitude

that

mean

often the case, a mixed

Investment

and

supply of these securities.

for

(Nov. 12) that the bank
offer during the week
beginning Nov. 17, a new issue

the uncertainty which overhangs all fixed income
bearing obligations is not likely to be lifted until the inflation fear
or inflation psychology has subsided in some measure.
Liquidity

bought, as
Marine, in which
well

managements, .. Fidelity;(21,000
shares) and the Value Line Group

Rubber and Tire Stocks
As is

delphia & Reading, the anthraciteiooted enterprise now a diversifi¬
cation leader registering
sensa¬
tional
stock
market
gains,
at¬
tracted
two
first-time
buying

Gas,

selling

Mutual

Investors

with

Mohawk,

Selected

with
54,800 and 25,000
shares,
respectively. Halliburton Oil Well
attracted three new buyers, with
United Accumulative the largest;
State Street sold out this. Phila¬

(54,700

Business

Fund-American

Group),

Affiliated

the

and

demand for short-term issues continues

face of the increase in the

Bank),

Bank

Development

proposes to

maturity of the Government debt.
The

Investors

Newmont Mining was

fairly

Outboard

was

America established new

But

Electric.

System

well

Stein Roe,

likewise

particularly heavy

was

Columbia

(World

terday

market specialists that the Treasury will make an offer,
option deal, in the impending refunding which will extend

bought by the newly organ¬

West, Consumers Power (with One

Black, President of

International

Reconstruction

money

International Nickel, in the face
well

Central

include

The

Treasury obtained through the issuance of a short-term obliga¬
tion, namely a 214-day tax anticipation bill, was in line with ex¬
pectations.
Nonetheless, the; feeling still persists among many

Miscellaneous Category

$100,000,000 Bonds

By JOHN T. CHIPPENDALE, JR.

The Government market, despite the fact that the new
money
raising operation is out of the way, is still pretty much a pro¬
fessional affair, since the year-end refunding has yet to be
provided for. The new funds cf about $3,000,000,000 which the

South

liked

Governments

Eugene

Activities in the

Other utilities

shares.

•

Reporter
=

portfolio managers; buy¬
ing of it once again exceeded
by National Securities) and Loril100,000 shares, this time encour¬ lard
(of which Affiliated Fund
aged by still-uncorroborated split
alone disposed of its 30,000-share
rumors.
The good buying of Pa¬
cific

(2005)

Here well-bought

In fact, Amer¬

maintained

Tel.

on; the

this

-utilities,^although

with

Dillon, Union Securities

INCORPORATED

Draper, Sears Adds

20 BROAD STREET

(Special to The Financial Chronicle)

BOSTON, Mass. —William D.
King has been added to the staff
of Draper, Sears & Co., 50 Con¬
gress Street, members of the New
York

and

changes.

Boston

Stock

Ex¬

NEW YORK
☆

CHICAGO

☆

BOSTON

the Commercial and Financial Chronicle

(2006)

consumers

Continued from first page

One

credit, or if business enterprise is deterred, or is believed
deterred, from expansion by reason of the cost of

to be

funds it must have for the purpose.

Manipulation Possible
It is true

enough, of

course,

that

Eisenhower has had

central banking

least for

Deal days. Whether such action would stimulate
buying and business expansion is another and
different story. The immediate effect of any such

; the New

consumer

very

artificially created

in the

ease

money

ful

Great

the fact that the Communist Blob

thrown its hat fntro the FoFeigri Aid arena, The hat is very
small, but the confusioft it creates
: is

the Federal Reserve

System could, if it were of
artificially high interest rates and
thus do injury to legitimate business and ultimately to
the consumer. Nothing of the sort has been done in recent
years, and there is no reason to expect that there will be
in the future.

danger lies in lack of understanding of the mean¬
ing of high or low interest rates. To put the matter bluntly,
and possibly a little over-simply, high or rising interest
rates are a symptom of failure of current production to
provide the goods and services demanded by the people,
including consumers and business—that is in the absence
of purely arbitrary interference by central banks or gov¬
ernment, and barring temporary maladjustments among
the factors of production and distribution.
The

feeling is all too common that "tightness" in the
money and investment markets is solely a result of re¬
strictive, perhaps unduly restrictive, policies of the Fed¬
eral Reserve authorities. With this misconception abroad
it is hardly surprising to find so much demand for changes
in central bank policy. In a good many quarters the Eisen¬
hower Administration was accused of hurting business
and employment by restrictive credit policies—the im¬
plication being that these authorities took their orders
from the White House. What actually happened was that
business and

consumers

tried to

spend more than current
production would provide; borrowing, or trying to borrow
when cash

was

needed.

Funds available for investment

scarce because current income had been
expended
what was wanted in the way of consumer's goods in
too large a measure. In other words
saving was insuffi¬
cient. The Reserve authorities
merely refused—for a time
at least—to create funds arbitrarily or to
encourage their
arbitrary creation, to take the place of funds which had

were

upon

\
v

not been saved.

What Does He Mean?
Now what does Senator Johnson

mean

when he says

that his

party plans to "face up" to these higher rates?
demand, that arbitrarily created
bank deposits should or will be available to replace sav¬
ing? Of does he mean that the facts of life in the world
of banking and credit will be faced
squarely and such

Does he mean, as so
many

restrictive rates

as we

ourselves create in the course of

our

economic
,

activity will be accepted and permitted to have
the corrective effect which alone will save us from infla.tion

its corrosive
consequences? We can only hope
with such faith as we can muster that this latter is what
! the Senator has in mind.

and

Such

.■

course would be our

salvation, but any such
goal would be much harder to reach than might be supposed. In the first place, of course, the New Deal inculcated with great
efficiency a contrary and very dangerous
doctrine—that very nearly all economic ills could be cured
by playing fast and loose with the credit system. More
than

that,

face

If all the other

;

Federal deficit of around $12 billion.

these outlavs.
income for

be
in
f

plans apparently in the Senator's book are
given effect, this deficit would grow larger not
smaller. A distressingly
larger part of the additional outJays involved in his schemes would be made for no productive work whatever. If taxes were to be raised to cover
to

.cnrns

would be taken from current

constructive purpose. If the

Treasury is to

obliged to go into the market and borrow these funds
competition with private borrowers, the government

would have to reconcile itself not

only to higher interest
rates generally but to much
higher interest cost on its

borrowings—and,

own

This

million.

less

tions, let alone the $20-K)dd bil¬
lions

the President and
matter mora care¬

;

■

;

have

disbursed

in- the

Soviet "aid,?'
including $378 million In arms to
Egypt, Syria, Yemen, and Af¬
ghanistan, consists of intermedi¬
ate-' and long-term (low interest)
period.

same

■;

what the Colombo flan has
to the South* Asian na¬

offered

•

'•*'

The

loans
for
which
the
recipients
pledge fnajor portions Of their fu¬
ture

export cropS^-at prices above

the

world

thus ;t y i ft

market,

themselves

Soviet

the

Land-

Andthese modest credits

wagon.

are being disbursed Very slowly.
By the Ond of 1957, actual deliv¬

whole world situation. -The air eries (other than arms) amounted
'* was full of technicolor viiio s of -to a mere $150 million; the. $464
creditor to the East, with '-long limitless markets in the East/Even million promised to
Yugoslavia
' ■
delays in payment. Right mow, ' the hoary fallacy that alt't bates save been cancelled.
Such is the record of the muchL
Austria is stuck with $17 million, all responsibility for the low level
claims in her "clearing" with twtixof East-West trade to the western heralded foreign aid by the So^Curtain countries; Argentine scur- strategic, controls was revived, in viets.: Yet, it is far more success*
than
ries around to find a takCr, offer- flat defiance of the.statistical evi- ful
ours.
They
do
not
ing 40% discount, for $50. million dence of shortages of grain, .tint- squander their resources on two
acquired
from
exports
to .theber,
and
Other
East ■ European scores of lands as we^do; alto¬
and again, the West finds itself in
the uncomfortable position! of a

Workers' Paradise.

in addition, private enterprise and

gether eleven countries (ten only,
after dropping Yugoslavia),
enjoy
their "benevolence." They oper¬

Also, cornmer-

exports." (Italics ours.)..J/v;';':';
monolithic re- ; ' The above is from the London
gimes are worthless. As one who Economist of March 27, 1954. The
negotiated
such
a
treaty
ex-'date might have-been any of a
claimed: "If we grant you a low good, dozen
other years ;(since
tariff on caviar, you*will swamp 1924).-Each time the sweet, prosus with
it; but if you grant us a .pect- of enormous new markets
low tariff on jewelry, there is not fizzles out; but it is
different,-now,
the slightest chance to bobst our the Faithful insist at eacn new
exports unless your government turn ». of
Moscow's
propagandashould want jewelry."
;
screw.
cial

treaties

with

ate

Even "cash

fective

political
tb every
that out;

all

by petty bureaucratism, as
Danish businessmen complain bitterly. Orders aie cancelled abruptly and delivery promises are not
dependable — perhaps because of
frequent mishaps in their planning. They sell without regard to
costs. When

limitless outlets for Western goods,
-The novel development is the al-

Ultimate

iomatic
omy ;=
case.

the

far more

Burmese

could

use

or-

ace

store,

tobacco

same

reappeared

the dollar market.
As

and

After

years of expertwith Soviet "business" prac-

ence

tices, the West should have learned
a
lesson, but did not. Wild enthusiasm greets every new Bolshevist "trade offensive "
".

staged

the
a

House

speakers

-i!

Communist
selves

With

_______xiAvl_

trace

with

showed

bloc

ii.

the

ready to heap Up popular illusions, banalities, and
gross

survival

the

revolution.
market

look

Communists

•

■

the

power

gained by the capitalists iS'a loss
socialists; why shoul.d they
contribute to strengthening their;

to the

foe? They buv from the
only absolutely needed raw
materials and
equipment goods,

deadly
West

the

latter

their
to

order to Strengthen
military potential arid

own

dispense with future

Temporarily

They are very short of
their own'
moneys are worthless abroad and
they are constantly ill deficit: in
the iSast-West trade, imports run¬
Western money because

ning as much as 50% Over ex¬
ports.
(Their gold is being used
sparingly, being hoarded afe a war
chest.)
Even without ideological
and bureaucratic inhibitions, their

did Holland.)

Soviet .dumping
But

very dmbarrassing

5??'Jas an example, can Red

China go on underselling by 15%
'
aJ Japanese textiles? Or
Russ'a °£fa"Pf
.?*'

should *e:
sentment

against

any

re--

Salable goods

phVsical .shortages, pre¬
clude its being a serious competi¬
tor of—Germany-, to say nothing

a'!!If;7®nf'J"w ,'5
answ6r
o*~ ~tu6
W^Gst

ulniversal

i^arply

On the Worid market,

the Bloc's

tiiG

would

imports

straihed by lack of
for export.

does right now, to enhance

gUit °f

»case,

currency.

tin alloys un-

them-.stead- there is nCar^umversal

international

stopping the Soviet dumping?
(Britain has just put the import

Commons

most pitiful, affair.

econ¬

contest, not a meeting Of supply
and demand. To them, any profit

after the devaluation? And

der licensing, and

30-odd

the

world

The

what would keep the West from

of Russian tin and

The New Economic "Offensive'*

planned

every

■ •

for dollar

same

buyers of manufactures and

machines, the Communists reap
extra profits—by stealing patents.

;

ax¬

Turkey, they outbid the Ameribuyers of tobacco for which
they paid in Soviet goods; pretty
soon, a considerable quantity of

can

the

self-sufficiency, is

imports.
They-sell or loan for two -ulterior-,
devaluation. Unless
motives: to acquire foreign ex¬
the price of golcP is doubled or
change and to foment Chaos.
tripled, they argjjp, the Soviets
Foreign exchange, not just
will swamp the world with cheap
propaganda, is the object of their
wares and bring about a bottomefforts to attract tourists without
less depression. If so, one may
regard to the cost in domestic,
ask, why would they not do the

than

cement

system as are mili¬
tary self-reliance, monolithic dis¬
cipline, and global subversion, the
four
pillars of War preparatidn

—

Gommunist

continuity in their more, much more, on Foreign Aid.
purchases; they bargain to the
What the President meant by
limit, demand the best service, the statement in the last State of
and
may
never
call on the the Union message—that the Soseller again. Following the Hitler viets may conquer the free world
pattern, Russia uses every trick by economic-offensive—has never
in the bilateral book to outwit been elucidated.
But it did help
even
the much-courted underde- to deepen the general confusion,
Last year, Here come the special interests in
veloped countries.
Burma delivered rice as per agree- gold, appealing to the stratospherment; in exchange, Russia offered .ic imagination as^a propaganda-:
cement

very

especially so, in the Soviet
Economic isolation is just as

essential

should spend

for
;

Soviet

Trade and Aid

portions of Russian production
wheat, cotton,, petroleum;. anti-?: outpacing America reverberate
mony,
aluminum, timber,: news- -throughout the Free World. Orator
print, potash, even though the dis- after orator, dbmestic and. foreign,
tressed commodity usually is-/in calls on us do do
something if we
scarce supply in their own coundo not want to lose out; What we
try. But they exact usury prices may lose js not quite clear; it is
for Silesian coal, as an example,./clearer what we are
supposed to
when Western Europe runs shbrt do in order to meet the "new- economic offensive":

not

were

Rationale of

The

Krushchev's bombastic extra-

undercut it at dumping prices for

of solid fuels.

cent

ever-increasing pressure for
boondoggling.. i;; ;,
l ■-

much that they expect

the Russians, to

Nor would Nasser, draw

"red"

his political usefulness.
'
Soviet foreign aid costs

leged threat of Soviet competition
even :in
manufactured
products,

you can count on

Nehru-knew

brings propaganda divir
(for how long?). Ours is
"expensive and produces
'widespread dissatisfaction and an

to
behold)* returns 'with
rapturous admiration. It is not any

market is depressed,

strings are at¬
Red credit. Tito

-very

men,

ef¬

dends

One fly-by-night tourist
Russia jafter another (business-

longer

-i-

And

little and

exasperate the trading part- Europe.

ners

fashion

charge.

along; hence his hypOrcriticai

attitude.

Lately, ' a new Soviet "chaldo not always work out to the.
lenge" sends shivers down sensibenefit of the customer. The So- < tive
spines,
and
not
only
in
viets

tached
"found

the barrel" deals

businesslike

nothing free

There is

;

size.

recent

Our

$55

China
than

market naturally

mind to do so, create

proportion-to

1954, according to

Department release/ Russia
has committed $1,900 million,

'to extremes, as many today would do, severe injury to
both business and consumer would result. It is equally
a

inverse

State

would vary a great deal with circumstances in each par¬
ticular case, but nothing is more certain than that if carried

true that

Since

but the doctrine expounded has not always

from first page i

has

number of sound comments to make

thought. ' Vr-';.,;r

Continued

is caused

excitement

been embodied in his programs. Both
the Senator would do well to give the

limited period of time reduce interest
rates far below their natural level as was evident during
at

this score,

system with huge gold reserves—and liberal laws under
which to operate—or even the national government itself
can

}

-',"7

essential f element

•£*

Foreign Aid by the Soviets

otherwise

2'''

:•

in < any program to limit the
height of interest rates iS'a radical reduction in govern¬
mental expenditures—essential, that is, to any program
which can hope to keep such rates within reason without
at the same time
flooding the country with arbitrarily
created funds certain in the end to bring higher prices and
general dislocation in, industry and trade.
President

We It
See

would have to, do ..without funds they

could have.

Thursday, November 13, 1958

,...

ln"
re-

America

Commonwealth.

American

...

the
-

British
•

crucial ooint. The
interference With exports to the Soviet svgtenr may be technically
factual errors. Most of
em took
progressive, but . it is fraught with
goviet bloc, which are of ndgligias theif basic assumption the J ,
•
' T#T
inherent shortages WhVh prevent
,
unwarranted idea that Soviet long-.ble significance to the West,, but
a
large-scale and sustained exterm policy .
has changed so. Very important in Speeding up *pattsion of its foreign trade. Ade¬
dramatically as to change the Soviet war/ preparations. - *> . - - quate - production Obtains along
*

;

This

even

the

Number 5794

Volume 188
"

•

The Commercial and Financial Chronicle
- -

•

(2007)
■U::..v.

31
'V

Russian^ goods-had to be improved * of--mew-farm land were put under
For the and their prices revised. "
;
the plow in Siberia. Pronto, the
rest the Kremlin is up against.a
From colonies subject to ex- 'cry went up: Russia will swamp
**. ntotfbervof" tery:/fi3isti^ting'
Satellites - turned the world wjto wheat! We have
Jems, one ih particular; the* ab-1 into dependencies in need of sub- before:us the report of a German
line:

one

which absorb up

arms,

to 50% of its investments.

sence

effectual price-mech-

What is^ more, they have
(official)! expert who lived
first/call on Russia's*many years in Soviet Russia

sidies.

onism. f Another is the outgrowth

rot Soviet, policies in the
touritriesT* ' •
' -•*"/;■*• ;
"c

....

now

the

Satellite exportable surpluses, such as tl\ey
.? 5 * v"
That alone trims the style
,

Inter-bo\ iet Business

a^efse

By JOHN BUTTON

Just returned from an intensive

Record Keeping Is A "Musi" Today

study^trip through the new Si-

berian farm land. He is not biased

of her exports to the West.

,v^

for
and

change—verv-ad-

The investor and

aSain^ -the experiment; - in fact,

thejinvestment

must be ascertained for* purpotes

salesman must both keep accurate of assessing capital gain 05 loss.
One; kind of "foreign trade an4 virsd fo the Socialist Fatheriand :*-he<is* -deeply > impressed^ His conrecords of every transaction if an
awi": is flourishing and expanding
..t-d b
chance in
clusion is> however, that, due to
The Salesman Can Hell* Hfe
.behind the Iron Curtain—tho one'7;i«n^^g^Yn hadhauehtilv re
Climatic and soil conditions, no investment account is to be prop¬
Customer and Himself j * i
WtWn the Sovi« Bloc, it is very
whe9t surplus for export erty^ supervised under today's reg¬
The importance of this record
Significant* in explaining 'both! * funds-the Satellites were forbid
"Can be expected. At best, Russia ulation?, and the considerations
which arise from the tax problems keeping to which we have related
Russia's rapid recovery af ter-1 944
m« Lc^ssor ; willhave enough grain for her

;
•

and. Iter

n(£

predicament; sineeU#5»

6njj, toIerates' American aid
}tt pplatid, he actually requests it
reality, it ^ tKofnmn/i
. no c-n

®wl> f®.0<l and .,eed—and

tet th®

Russia's rise out of ruins is. being

^dmued iia end.

-ta ihu •-

material.

to-the*-- detriment

jv.-c; m wyc

Chipa. as .yet. It means
(fewer years a much'greater meas-:-^? * ^ e^'^^n on Russia's rer ,r ^.I{i
__
'_ ,
of progress—especially" also" ^?UF^s.- ! Their^v commerciar'. traf^. *.
- RflfiDIVAC NfMllllflAC
of living standards; hot "just ' "ofbalances , at 5 . billion to 6 .•• \
IlllHIHlWO
construction; and equipment. But ^
whatever that is,
Blanche Noyes, partner, Hem.Germany has * been r helped
by -2n GafJa 8lde ?f the tedger. s° the : U phill,; Noyes & Co., New York,
America while Russia is supposed
sa^' they do not and Graham Jones, partner,
to have raised itself by its own
lncinde arms, and do not mention Cooley & Co.,- Hartford Conn.,
,bootstraps. Nothing is;f urther credits, from Moscow.
But the
The

accomplished

e r man s

ure

;

from the truth.';;;'

•

Published data make it clear that.

'Vf.TV
■

■

tiai for traffic "with the

which must be analyzed. No longer should! be discussed with custom¬
is it possible to buy and sell secu¬ ers who may not be aware of toe

rities, collect dividends, and for¬ need for it. The salesman should
get the accurate record keeping also keep a customer's ledger, ei¬
that must be maintained. Follow¬ ther on cards or in a, loose-toaf
ing are certain records that every book where he can record the data
investor should have in his files i we have suggested here;. The orig¬
The date of purchase of a secu¬ inal information can be obtained
from copies of confirmations which
rity is important because the time
•

for

worth S7 bll-

I tog"* »uc?
ilsrlv

tor

Not -onlv

Shhr.1^

GGuiDmGnt

nines

vate

States were> '•"The "Threat'' of Left-Overs

number

Graham Jones

Blancke Noyea

much

including the from a militarv-nolitical ono is
equipment of entire factories- (a ,a pure mirage- Which is no* s'nr
economic

aid,

mfceksPaetcr
irucKs,
ere.

too,

wasningron .is

^stiu, of86
planning and management — the Homer J

JpTstruc-:

Thenf^Russia
ture

buih
of,"commercial treaties"-with

the

European

&Pe tb€

Gustav A.
Alexisson, partner, Granberry,
V

collf®«vis"t partne^6 Clark' Dodge* fcoO'Connpll Vim PrAci

inc therf ^ °f

process can

be rationallv

^
enid^d- Sk*'

Satellites .bf-the

Nazis^used to impose on competitive markets.

^ **?»* &
Severance, partner, F.
Lealfe°B ^wan uart
Scranton I Co' '8%
'

£S££
A1!? 41?]1 °+u
AU told, the

should

bonds

All

With Reynolds & Co.

amount to no more than the leftovers of a vast economic empire-

Where

rate.

attached

there

bonds

aid

the

privilege

they

afford

account.

This includes

such

per

unit

tion

to membership

in Pacific Coast
Stock Exchange through purchase
of a membership in the Los An¬

Chairman.
paid (if bought on an agency
Associated with Daniel Reeves
basis) and the total cost thereof. &
Co, Mr* McEvers will become
These records should likewise be
the firm's second member on the
kept when securities are sold.
Exchange floor.
In the case where there are
Mr. McEvers began his securi¬
sions

stock dividends the date

they

are

wuuii a nwwara
Mass. Willard

Yet, it is as far from turning Boi.BOSTON,
—
shevist as it ever has been Nor-Howard' is associated
do Egypt and Syria show any & Howard, Incorporated, 24
tendency to go down the Commu-- eral streetnist drain, despite the fact that'
Two With Lee Higginson
both countries are honey-combed
Richard A. Hansel and Harry L.
by Soviet military and civilian
experts. But their local Commu- Koenigsberg have joined the in¬
nists are preserved — in jail or vestment banking firm of Lee
exile. Incidentally, do we not Higginson Corporation, 20 Broad
send swarms of experts (and salesmen) to the areas where we
o.
operate? If the Soviet men seem'
wW
.

with Eaton
Fed-

^ggl*nsSTn U(SpG1ra^?.n' 20
IT ewv
y'r,mlmbers
T
Exchange,

re8ls«-er®d representatives,

ties

career as a reporter on the
Exchange in 1948, and has since
the number of shares as welL been a clerk and floor
trader on
Where Mutual Funds are held the the
Exchange for other member
distribution of capital gains should firms.
be specifically recorded since their
tax
treatment is usually based
upon the ruling that they are conNewburger, Loeb Adds
sidered
long-term capital gains
Newburger, Lpeb & Co>. 15
and not current income*
'
Broad 'Street,
New- York City,
-The recording of the transac¬
members of the New York Stock
tions which evolve from the re¬
Exchange and other Exchanges,
ceipt of rights
should be very announce
that the following reg¬
carefully stated in an investor's istered
representatives have joined
records. If they are sold, the net
their organization: Joseph Broder,
sum received after expenses should
Monroe L. Ericbson* Andrew H.
be available for handy reference
Freund, Louis E* Lafleqr, Lester
when tax time comes about.
If
Meyer, John F. Settel and Cyril
exercised, the securities purchased
Shapiro.
and the cost thereof should also

received, should

be recorded

and

be noted in

just the same way as
investment.
In the event there is an invest¬

was

the original

Haycten, Stone 25-Yr. Club
The 13th annual dinner of the
Hayden, Stone 2.5-Year Club was
held Thursday, Nov.
6 at The
Antlers restaurant*
.

The

club

composed

members who have been associ¬
ated with the investment firm of

Hayden, Stone 8c Co. for a quarter
of a century or longer, including
three members, Herbert G. Bell,
William A Harrington and Charles

Finkler^ each of whom has been
with the firm
years.
The
in 1892.

for

firm

was

than

established

At a meeting prior to the dinner
to then Benjamin Seigel was elected Pres¬
recheck broker's records that are ident, Paul Eng, Vice-President,
not always accessible. Also, in the Hunter Graham, Treasurer and
Michel, Secretary, to
event securities are bought by one Winifred
member of a family for another serve for the ensuing year.
curred and it is necessary

person and the problem of estate
settlement arises (as it does even¬

tually for everyone) the records
should be complete. If there has

cancelled, the
been a gift, it should be so noted,
prices for their exports (to Rusalso the date thereof, the title of
sia) substantially raised. The conthe security, and its value at the
trol of whole industries, previtime it was received by the donee.
ously grabbed-by the Kremlin, more
successful in subverting aS
This data should be confirmed by
< State
was returned to the respective losome countries; it is because of
Investors Branch
a supporting notation attached to
eal governments. Actually, Mos- specific conditions and political
GLENS FALLS, N. Y. — State the security and kept in a family
cow had to provide "aid," such as
interests, never by trade or aid Investors Service has opened a lockbox. In the event there is a
by
assuming responsibility for
Or- take an individual comquestion of ownership during es¬
Hungarys commercial debts, to modity that used to be a chief branch office in the Queensbury tate settlement, or if the invest¬
R>e West; putting ^up plants in. export article of Russia. Within a Hotel under the management of
ment is later liquidated, the cost
East Germany, etc. The quality of couple of years, 32.5 million acfes Joseph L. Bruno.
countries were

geles Division, was announced by
price per Frank E.
Naley, Exchange Board

affiliated with

reversed, indeed. Reparaclaims against Satellite

ap¬

bond, also commis¬

It was

proper

management

Coast Exch. Member

The elements of cost should be
recorded

revolt of 1956,
could be checked by force. But
force was helpless against an economic debacle. Nor was it enough
to slow down the process of Bbl-.
shevization. The inter-Soviet flow
of "aid" had to be reversed.-

this

Election of Milton S. McEvers

ex¬

form or another

bloody Hungarian

before^

proach to account
accomplished.

was

of warrants and the sub¬

existed

are

the? «U.S.S.R.
(Special to The Financial Chronicle)
must —one per cent or so of its total
CHICAGO, 111.—Patrick, J. ment in rights, or long-term war¬
have been in the
order of $25 output-and lhat at the price of ' x^.-.
rants are held in the account, the
bilhon if not «iore,. not counting very low wages and great do," Murphy has
become connected date of expiration, and of price
the value of the forced labor ahd- mestic deprivations.
How much with Reynolds & Co., 39 South La changes for the basis of exercising
know-how exacted from millions "penetration" is achieved, other Salle Street,
them, should also be available for
of war prisoners and non-Russian ; than
of the psychological kind
ready
reference.
Otherwise, a
With Harris, Upham
valuable privilege may expire
deP^rtefs:
- •>
•
.
which the "export" of the Bolshoi
All of which was vital to RusTheater's ballet reaps?
(Special to The Financial Chronicle)
through an oversight that could be
sia's recovery.
But the Satellite.
For the last fourteen r years •
BOSTON, Mass. —Edward
P. otherwise avoided.
economies were tottering under trade with the Ifon Curtain acVital for Estate Purposes
the double strain,og reckless counts for over 20% of Finland's WaJker is now
Bolshevist
waste
and ruthless - total trade, the largest percentage Harris, Upham & Co., 136 Federal
The foregoing records are abso¬
Russian
exploitation. They had for any nation on this side of the Street.
,
lutely essential to the proper su¬
been milked to the point where - iron
Curtain (disregarding Af- - :"
pervision of an investment ac¬
chaos was threatening. The growghanistan), with some demoraliz- " With Eaton & Howard
count.
Unless these records are
mg
unrest, culminating m <- the ing effects on the Finnish svstem
available, time and trouble is in¬

drew in one

tween salesman and customer than

piration dates pertaining to sub¬

. ,

customer.

are

such

scription privileges.

there

common

should be included in the records

mfrH^eS nr^f^om!naA d governors
btraMlfnc
efr/
Association of
sequestered, and so on/ Little former which ha? hern«l
■
Ai
Ti u Deaiers from District
Finland, in addition, paid in-of-.^s^i^easinglt
hn^
Wv i lnS}udes
s^ates
feet
thaiv
bilhon dollars Gfven th^RussSn induSr5SOm^SN NeTW "Y°rk^ C<?nnf.cticut and
,ri*> reparations (nominally *; $225 ■■ trabrdm^
Je,Ty*
Is tan^million). iReparations came' also take it for granted) and it« r^io^
^11 v? e.le9tlon. a^id the two
.from Italy; Austria is still paying, lively low level of modurtivitv"^m^. wm begm se^rn^ thre^year
Wherever the Russian army went, ns canacitv for world
ViSSl^
January. Two- New
the commissars helped themselves "comoetitiori- is limitod
are retiring as NASD
all 'Technical,know-how, often, by the figures quoted above -SSd -^varrfS L* ?eurgmann'
to the technicians..as well. They they mult^ta? limitedTr^ ?nd h'
^ ^Pro9p,rlch & Coreceived
Americanwaid, some $0 6 visible future. in tho vicing
: Spfncer Trask^ Co
Partner>
bilhon after the War.
Probably
So far and
-5 „ . & Ua
$3 billion of the war- ture the'th?eat of a Rn^ipJ, Jn" f
following were nominated
time
lend-lease to Russia' was .Sic "r^atton » ^Utlnc^
■« 38 ^em^ra & PUtrict
,

stated.

scription

m iimh vintrnr

•

warrants

..swallowed
altogether. Firilafid's"-^" Th© volume of inter Wint
j. nickel
mines were annexed, Ru-; trade- is a multifile nf '
manian and Austrian oil, Hungar-. trade
The USSR in
-ian
aluminum/ Polish zinc,- is
take

An
analysis
of a
customer's
holdings can be the result ot a
conference pertaining to record
keeping, and this should produce
if convertible, the terms should
a
much closer relationship be¬
or

interest

households were thoroughly -v

(;ransacked. The Baltic

accurate.

classes

fully described as to complete
title, series if any, maturity and

pertain to the securities he is sell¬

la^yToXani
XSS'?2riS^MeS8l^J''*
'
\
tGxtilGs, porcc-.
i

also

removed
wherever
no^fwe fn
' S?,ya b^?n olls' lrozen meats'
couX after mmtrvTv™^ "Tmostly things planners„could.
...cpuntiy Jter /country,^ even pri- . dispense with.
r*" r;*:-

■

determines

B stock, or if a pre¬
ferred stock of a certain par value,

/nfannn'

held

should

several

W?st~ sS

holding period ing to the client,. Other data can
be acquired after he has had a
is long or short from a capital
discussion as to the advisability of
gains tax standpoint.
setting up a record system, for toe
The description of the security,

.'Germany alone was

which

whether or ndt the

With

Montgomery, Scott

PHILADELPHIA,

Pa. —Mont¬

gomery, Scott A Co., members) of
the New York Stock Exchange

and other leading exchanges, an¬
nounce
that
Stanley Grossman
has become associated with them
as

their

registered representative in
Philadelphia
office*
123

South Broad Street.
Mr.

Grossman has been active

in the investment securities busi¬
ness for the past five years.
,

The Commercial and Financial Chronicle

(2008)

Record

Statistical

Ten-Year

Earnings

Assets

Dividend

Thursday, November 13,1958

"meet the .needs of
the saying goes. If eco¬
nomic growth is accompanied by
rapid technological, change and
shifts competition of output, we
can expect bottlenecks and short¬
expanded to

trade,"

Price Range

Invested

Value

Bank andlnsurance Stocks

Operating

Share*

Per

—

Book

...

Low

High

1948

This Week

—

$3.25

$402

$2.00

55.60

3.27

426

2.00

56.94

3.58

y4
48 %

39ys

1950
1951

By ARTHUR B. WALLACE

$54.92

1949

58.48

4.05

56%

45%

ages

60.21

4.35

59y4

51%

pressure

1952

Bank Stocks

475

2.25

469

2.50

490

2.50

was

1950 19576

Company had built up a sub¬
stantial corporate and personal trust business, and in September,
1949, this was further expanded by the acquisition through merger
of Fulton Trust Company.

-v

•

deposits of approximately $2,300,000,
New York Trust has seen this item grow to over $750,000,000.r:rhe
bank has been fortunate in having over its history a group of in¬
fluential members on the directors' board. It derives a substantial
proportion of its income from wholesaling its credit, but every
effort is made to cultivate smaller accounts.
This has had the
effect of keeping down overhead and enabling the institution to
operate with a relatively small staff. It is regarded as one of the
most compact of New York's large banks.
It is a member of the
Federal Reserve System and of the Federal Deposit Insurance
Corporation. There are six branches operated.
1889 with

Starting in

Obligations.^

2,100,000

Discounts..:-,.™

382,621,000

Fed.

and

Loans

Res.

Int.. Rcc.

Deposits—.

4,434,000

Assets

Other

$352,675,000'

follows

There

assets:

U. S. Gov't

Obligations

principal categories of these
'7.;V'
and

8%a

Years

1954

Over 10

r> to jo

lears

Years

„

1953..

80d

20g

within C

Due

Due in

G to

d Mature

Due

f Due in

•

years.

;

years,

relatively short position

which leaves it in a much more comfortable

There is also given the average rate of return derived by New
first, its loans and discounts, and' then on the govornment holdings:

government. All too
often, the ''wolf cry," Socialism!,
has damaged the
cause
of free
enterprise by false alarms which
blunt
public awareness of real
dangers. But on the issue of in¬
flation, the danger is very real
taken

and all the more

economy

it is

because

On Loans

On Govern¬

& Discounts

ments

& Discounts

ments

like ours calls for

stable in
value, fairly generalized in pur¬
which is fairly

chasing power.
When the dollar that was

worth

in buying power be¬
shadow of itself, we are
in for trouble.
cents
a

comes

ceases

money

bonds and mort¬

rise

real

rates
anticipated

cover

lenders

trapped.

want

don't

Tax

burdens

are

in¬

because ficititious profits
result from understated deprecia¬
creased

tion charges.

False Hope Raised by Inflation

sometimes

that
inflation
is

argued

creeping

beneficial

because

economic

stimulates

This seems to
cart before the

growth.

2.44%

1.42%

1954

3.16%

1.90%

1951

2.69

1.54

1955

3.35

2.04

horse.

1952

3.00

1.69

1956

3.85

2.10

times accompanied rapid economic

3.19

1.90

1957

4.23

2.30

growth, I have no doubt—but,
suspect, as a result, not as

1953

—

There has thus been
on

betterment of about 73% in the return

loans; about 69% in the governments,

especially

reserve

stands at $5.65

for bad debts, set

under

treasury formula,

process.

OVERSEAS

Company, Inc.

BANK

AND

LIMITED

Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
Head Office:

26 BISHOPSGATE, LONDON, E.C3
-•

Bulletin

Available

and

Members American Stock Exchange

which

later

the

production and
must

Government in

aden, kenya,

uganda, zanzibar 4 somaliland protectorah
Branches in:

Telephone: BArclay 7-8500

india, pakistan, ceylon, burma, KENYA,

Bell Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.*
Specialists in Bank Stocks

tanganyika, zanzibar, uganda.
aden. somaliland protectorate,
northern and southern rhodssu.

mar¬

corrected

through the painful
of recession and depres¬

sion.

hedge

arms

government.

This could become a serious
to

It may drift from

that

know

uneconomic

taxes

hard

there is

free

enterprise long
run,
I feel that a more
globe, we apathetically equitable and rational tax system
sit at home and whine that creep¬
would
help to foster economic
ing inflation is inevitable; that we
growth and enlarge the tax base
can't have reasonably high em¬
so
much that we would be able
ployment and a reasonably stable to increase tax revenues with both
general price level at the same lower tax rates and lower prices.
time, and that government policies
have an inherent inflationary bias
The Monopoly Power of Labor
which

eliminated.

cannot be

Unions

You all know the standard pro¬

If you don't, I sug¬

nouncements.

gest

you

the

Senate

study the hearing which

conducted
this

year

dition

also look

Finance

last

Committee

earlier
the "Financial Con¬

and

year

the United

States," and
published

at the reports

by the Joint Economic Committee
past summer under the title

this

The

The pattern
mands which

of annual wage de¬
has grown up in
strategic industries and the "spill¬
over" of these wage pressures to
other union, non-union and gov¬
ernment workers together force
money wage rates up higher each
year—higher than average gains
in producivity and existing prices

of
so

haven't

risen

tivity."

To that, the stock answer

inevitability of chronic infla¬

inflation

passive

acceptance

way

of life

I do not exaggerate

inflation

domestic

tack

many.

our

problem.

when I
number

must

say
one

at¬

it with all the vigor we can

inflation.

turn to the

the

can't

causes

subject

fight

inflation,

our

but,

since money is my business, I have
been studying and observing this

for

problem

some

time

contracts, exaggerated

inflation

will

be, "So what?"
Obviously, as a nation, we can't
get out of the economy in real

values any more than we
matter

pay

how

ourselves.

something to

vidual

- product,
attempts of

provide

for

see

of infla¬

—
money wages adjusted
changes in the price level—
always closely approximate
the total gains in physical pro¬
ductivity. Prices could be going

for

will

up ten-fold, remaining stable or
falling and the same relationship

inflation
the
his

indi¬
own

has

period

of rapid growth, we

expect some
prices, as the

especially in these

any

wage

lag

eliminated

money

been

clauses

and

automatic

advance

by con¬

Growth

Growth itself produces growing
pains. An investment boom cre¬
ates strong competing demands for
capital and loanable funds.
In
can

—

almost

tract.

every

hold

increases set in

them:

Economic

down

protect them.
As

causes

produce,

dollars we
The total of real
many

wages

would

concern.

outline the

tion

and

expecta¬
cut

their real rewards, a flight from
fixed money claims and demands
that government do

frustrates

care

is not

produc¬

should

escalator

than

muster.

Now, let

monopolies

continuously push up unit
costs and force price increases on
to
business
and
the
public is
widely recognized by people of
all political faiths—except union
leaders, their apologists, or their
political creditors.
Now, union people, I know, will
always
say,
"But
real
wages

(1) The prevailing pessimism
(not unanimous, to be sure) about
tion; and
(2) The

that labor

The fact
may

you follow
current discus¬
sions, you will, I am sure, be struck
by two things:

the

bear.

can

Relationship of Prices to Eco¬

nomic Stability and Growth.

let

that

infla¬

around the

their

doubt in my mind that

days when

escalator

Although it is
document
statistically,

simple subject. But,
at the risk of over-simplification,

—

add

carry

high and

tionary pressures.

with

incomes

reasons,

must

burden, but

heavy tax

Furthermore, inflation creates
divisive social strains. People use
all
kinds
of
devices
to
protect
real

Taxes

security

virtues

the

paternalistic

national

For
we

and

statesmanship.

see!

seri¬

grave.

high marginal tax rates reduce
spectacle for the world productivity and efficiency and
While we are trumpeting
contribute
to
inflation.
In
the

What

inflation

tion

120 BROADWAY, NEW YORK 5, N. Y

whole

time

demands for services

to the

the
against in¬
or

enemy unless we know him.
I do not pretend to be an expert

54 PARLIAMENT STREET, S.W. 1

Bankers

the

into

13 ST. JAMES'S SQUARE, S.W.1

Members New York Stock Exchange

The

security.

knowledge

because

will test both the bond market

clauses

London Branches:

Laird, Bisseli & Meeds

partly

not yet sure that the

are

The United States
Treasury annually must refinance
some
$50 to $70 billion of debt,
and this—plus the problem of rais¬
ing new money to cover deficits-

flow of economic life. It produces

process

GRINDLAYS

growth.

kets

Morgan

inclination

Government will restore fiscal or¬

maladjustments

share of the 1,200,000 outstanding stock.

NATIONAL

some¬

inflation is
Inflation is an
creates false
disturbs the normal

chaotic

signals
up

investors

flation by investing in equities or
real
property. They are: driven

that

uneven

has

inflation

Growth financed by

structure

J. P.

the

put
That

cause.

good showing on loans,

about half of 1957, with depressed economic condi¬

tions, fell in that year.
The

the

have

you

money

resistance,

some

1950

—

since

involve

the

large
supply.
Once the spiral is set going, the
process may become cumulative.
The sale of long-term government
bonds to investors has encountered

large majority of small savers do
not

and

1959

may

know,

increase

our

economic

future

offi¬

now

ahead.
financing,

deficit

The
well

Ratchet-

apathetic.

insidious and people are

moderate

-Average Rate of ReturnOn Govern¬

fiscal

for the years

mum

ous

■ j

On Loans

perhaps half that amount a year
later.
Some argue that the $80
billion Federal budget is the mini¬

from page 3

The Inflationary

cause

York Trust on,

spending

der.

depreciation of dollar claims be¬

Due in 5 to 7 years.

position than in the case of portfolios of long terms, for the roll¬
over of the short-term obligations is comparatively rapid.

lion

situation.

Continued

cially estimated to reach $12 bil¬

large banks.

will

The bank has therefore maintained a

Trust

by New York Trust

been maintained

gages,
into speculation in
estate and equities. Interest

8 years.

in its governments,

Deficit

have

Dividends

channels, such

4 years.
9

are

deficits.

expressed interest in merging with the

have

ings are diverted from established

9 years,

The present divi¬

expenditures
normal times

financed

It is the intention of the management to explore

reasonably stable store of values,
the
economic system flounders.
Savings habits are distorted. Sav¬

b Due in. 7 years,
c

the

1894, or for 65 years. At the $3.50 annual rate, with the shares
selling at about 87%, the yield is 4%. The dividend pay-out is
conservative, about 61% of operating earnings.
The stock ranks as a better grade issue among the country's

When

21 f

1955

100

create inflationary
But they are almost

may

to if those

sure

in book value during

increase

25%

their consideration."

20e

1952_

1951

Expanding government expendi¬
even though
covered by

tures,
taxes,

specific proposal should result which the Board
of Directors shall believe to be in the best interests of the stock¬
holders, such proposal will be submitted to the stockholders for

money

27d

—

63%

in the past year or two.

this interest.

100

Up tor.

Years

.--92%

been

"Certain banks

2.7

—

Ma t ii ri ties-

Over 10

5 tolO

has

trust company.

Government bond holdings for
Up to 5

76%

None has shown much sub¬
stance, but the annual report on 1957 operations contained this
comment: (emphasis ours.)

maturity distribution schedule of New York Trust's U. S.
the past eight years follows:

3.50

There have been numerous rumors involving New York

0 3

„

Miscellaneous Assets

Other Securities-6.4

44.9%

Discounts—

Real Estate

21.6

740,844,000
$852,675,000

Loans

—24.1%

Cash

7,620,000

;

.•

breakdown by

1,050,000
18,949,000

Acceptances ———!-■>
=
Accrued Taxes & Other Liab.-

18,426,000

Customers Liab. for Accept

3.25

497

Uneconomic

$84,212,000

Dividends Payable-——_•

2,914,000

Banking Premises™,.—

511

14,212,000

Profits-

Undivided

;

52,701,000

Gov't

Inflationary Government Finance

Oar Gravest Domestic

$30,000,000
40,000,000

Capital
Surplus ™„:—

183,968,000

Bank
Other Bonds & Securities

develop which also put
on costs and prices. "'V

50%

69%

3.00

Adjusted for 3-for-l split in 1955.

in mergers

Liabilities

Assets

Cash and due from Banks $205,511,000

5.94

1958

Statement of Condition—September 30,

Stock

5.49

68.20

58%

2.75
.

decade, and one cf 83%? in operating earnings.
dend is about 75% above that of 1947.

The original New York Trust

;•

65.81

There

acquired Scandinavian Trust Company, which brought an excel¬
lently equipped foreign department to the ultimate consolidation.
f

64.83

42%

pressures.

Continental Trust Company, chartered

1904

519

511

in 1890, was
merged with it. In 1905 the title was changed to the present one.
A merger of New York Trust Company and Liberty National
Bank was effected in 1921, the name of the former being retained.
Liberty National, primarily a commercial institution, had in 1919
in

and

4.68
4.90

1957

bring to New York Trust its specialized branches of the banking
business, and resulted in a very well integrated unit. The company
started business in 1889 as New York Security & Trust Company,

?■
-

63.76

1956

present New York Trust Company is the outgrowth of the
None of the mergers during its history
made to attain mere size; each component bank served to

The

consolidation of four banks.

61.96

1954
1955

2.75

474

4.50

1953

YORK TRUST COMPANY

THE NEW

money
money

pressure

supply is

External World Pressures
We

tional

have to

load,

want to go on our

consumption

heavy na¬
yet we
merry way with

carry

defense

and

usual.

When

reflects how the economy has
to

adjust

one

had
changing conditions

Number 5794

188

Volume

The Commercial and Financial Chronicle

(2009)
Tight

in recent years, he is struck by its
amazing resiliency — the .adjust¬
ments following World War II,

money

dramatic

higher

post-Korea, ?the

Korea,

into the space

entrance
cannot

flexibility,

run

danger.

All

these

tight

have

causes

suit

which
one

combination

vary

situation

rates

was

FHA

and

the

real

culprit.

Past

and

probably

large order

our

promoting

root

\J»

Continued from page 2

think

You

iiv I Li

know

businessmen who

that

inflation

fairy godmother who provides
with something for
nothing.

the

petitive reasons)

and surplus has

risen every year except three.
For more than 20 years Farmers

Underwriters Association arid of¬
fered FUA stockholders rights to
buy Truck Underwriters coriimor*

Insurance Exchange operated ( stock at
12 %
cents * per " share.
Apathy
; ;
solely
west
of
the
Mississippi; Later when Fire Underwriters As¬
going to do about
River and now does business in sociation was
the general apathy toward infla¬
organized, Farmers
four states only east of the River. stockholders had
the opportunity
tion— and the lack of
political
Nevertheless in premium volume to purchase at 10 cents
per share.
responsibility?
it ranks seventh among the na¬ These
stocks have now risen sub¬
For one thing, we are on the
tion's automobile insurance com¬ stantially,
Truck
(after several
short side of public information
panies and has over 1,540,000 pol¬ splits) is now
selling at $24 peron
the subject of inflation.
We icies in force.
These policies are share and Fire at
$25. These com¬
need a greater public understand¬
serviced by the main office at panies
are
completely separate
ing of how it works against the 4680 Wilshire
Boulevard, Los An¬ financially from, Farmers but un¬
best interests of
everybody. /■'*
geles,. : and branch offices in der common management. In this
;
It should be an assignment for Portland, Ore.; Pocatelli,/Idaho;
connection,
the
two
men
who
every business organization to dis¬ Colorado
Springs, Colo.; Kansas founded the Company,/John -C.
seminate the, facts about inflation, City, Mo.;
Austin, Texas; Merced, Tyler and Thomas E.
Leavey, are
—and I'd suggest that we keep
Calif., and Aurora, 111. In addition today respectively" Chairman of
bur facts straightforward — right; the
Exchange ^ has 704 District- the Board and President. A
General

What

This

greatest inflationary

problem.. Congress insists

on dis¬
pensing largess without providing
plans for payment or apparently

Inflation Ratchet

inflation.
some

seem

the

fairness, I must say that
leadership is not alone in

and I know

put the govern¬

we must

ment's fiscal affairs in order.

was

Next,

causes

\ ^

mortgage moneygreat cries of anguish
was killing housmuch

But in

union

"FecT

money so

"Fed,"

importance from
tune period to

anotner.

tight
with its

were

interest

created

cials which is really
of; all labor abuses.

the

-mortgages. The Congress, not the

inflationary environInflation is always the re-

ment.

Money

how

government-pegging of inflexible

general

recall

jng You and I know it wasn't the

is necesIt is the longpersistency of inflation that
and desirable.

our

FHA-VA

situation last year
interest
rates
dried

that the

in the

even

will

and

There

level of prices

general

FRA

perfection, nor. do
rigidity. In the short-

run, some

sary

age.

expect

want

You

are

ratchet —the

problem.

general price-level

Old government programs expand-and new ones are continu—?
; But, it is one thing to recognize ously "being
ground: out. ;l- Wage,
the
problem : of ' inflation^ and pressures spill" over to governanother thing to face it; squarely.. Wpriti the recent .salary increases
goes

"notch

rarely-comes down

time and

■

strong
down to the level of the average Agent's
offices/71 Branch Claims • and Cxperinced management team
pocketbook.
;
»
;
;
•.
;. offices, and 6,524 Licensed Agents.! has been developed under their
/For another thing, we need a : Prospects for future growth for ■
supervisiori. The potency of this
crystal-clear national declaration the Exchanges are excellent: >
management shows in the record.
.

of
*

is Inevitable/We

have "the

r'i'Y

" " / * "•

•

*"4

•

",* * < ' * ~)

}

Oh the tax subject, ,1 will only
pressures of vocal special pleaders'«say here that tax: reform" is. long
who want the problem of inflation overdue, and badly needed. Propsolved in -a 5 mariner , which will erly devised, it would help reduce
ment

provide them with -peculiar eco- some of the inflationary pressures,
nomic advantages,; and, of course,'
I am not arguing for budget
they all identify their particular rigidity-—only budget responsibil.

interests with the general welfare,

ity

—

fiscal

self-discipline.

Gov-

political r expediency^rath^r emment deficits financed by the

And

than rational choice, often ;tjic$ates. banking system—where the Treasthe solution—or:no solution.
ury always, goes
in a jam—in-

institutions

crease-the supply-of money/ This
that because riF oQr kmd of government borrowing is
and? the; political eri- - ou? modern version of; printing

viroriment

wetmtist 'resign

/ Let

they

^inflationists"

the

will

say' if

j our- - P1'®?8 currency.f;
infla-/ Then, thm*e are

■

to: living with /"an
tionary "creep." "
v

inevitable inflation,^Remedies canSuing
effective if they go to the: bold new

resist

infla¬

(a)"The territory east of Indiana'

tion. This should take the form of
an amendment to the
Employment
Act—which
for

Federal

the

basic

-will,

charter

Ohio River

the

developed.

the number

area

economic

policy—to
make reasonable stability in the
level of prices one of our, primary
goals.
Legislation to this effect;

south

/ and

this

of automo-

biles

;

Fanners Underwriters Associa¬
tion has long paid $1.00 per annum
dividend, supplemented from time
to time

by cash extras and stock
The present regular divi¬

ierritory already served and.

the

greater

premium

than

the, splits.

dend rate is $1.40 per annum,
pay¬
rates are gener-, able 35 cents quarterly. Increased

ally higher/

earnings in the future : can be/ ;;/; •*;
(b) The company is rapidly de- anticipated from the continuing
veloping a better type of agent growth of the
Exchange with
ing;
..."
:
,:.>v
hy putting new men - on a' added ^dividends for the share¬
:
Naturally,ca declaration of this
holder of FUA.
/
subsidy plan for 18 months
character- has
little more
than
...Mvhy ^ilting,;ihem a Very thorEarnings for 1958 are in a sharp
moral force. Specifip monetary*
;
- ough
education and training upward trend so that we estimate
financial and iriarket policies -will
during this period, This .pro¬ per share results in the range fit
be essential to win fhe fight against
gram
is
already pVodricing $2.30 to $2.40 vs. $1.93 in 1957 and
»ihflatiofri. * But atf "the same * tiime,
excellent results.
:
$1.23 in 1953.~ (All figures on basis*
much good might come out of a
■

introduced in the last session
of the Congress, but it died aborn-

was

the past deficits
—the big debt funding problem.
I don'tlike creeps * /"
i - Treasury refinancing problems
As
an
uncomprtmiismg :arrti- -impose severe burdens on moneinflationist; J; reject the notion.\Of - *ary P?ticy. Sooner or later, we
selves

determination

to have to work out a
debt management pro¬

clear-cut statement of intention to
the powers

use

employment but also to resist
due

•,

the. Federal

Government not only to check un¬

un¬

inflationary pressures.
*
finally, we must put men

losses occurring in of present capitalization of 1,800,years
have 000 shares.) On the basis of pres¬
made it necessary for Farm¬ ent business and premium rates
ers
Insurance
Exchange, as for the Exchange, earnings should
well as its competitors, to in- reach $3.00 per share in the next

severe

the

last

;

three

propriate fiscal policies. and. the
vigorous enforcemefit of competi-

premium rates with a year or two. At current prices
corresponding increase in the (31-32 Over - the - Counter) * tho
stock is undervalued both,on.a
gross revenues of FUA.
inflation.
Wage Inflation
•,
and
price
earnings ratio
: We have got to have a Congress
Farmers Insurance Exchange is yield
And what about wage inflation
basis.
;
—the pressure of wage costs on controlled by men who agree that owned by its policyholders. It has
inflation purloins from the past no stock. The only way by which
prices?
and steals from the future to pro¬ the investor can
participate in its
The real problem is that labor
vide the image of rewards for the growth is through the stock of
unions
have immunities under
present. We have told ourselves the managing corporation. Farm¬
the law which business does not
for many years that foreign policy ers Underwriters Association.
;
have and which neither business
disagreements should stop at the
or labor
should enjoy.
LOS ANGELES, Calif.—Thomas
The big(2) 'Farmers Underwriters As¬
water's edge. By the same token,
sociation has shown outstanding R. Peirsol has joined National Se¬
gest industrial enterprises operate
our disagreements about
monetary ability
not
only
to
build the curities & Re¬
under the constant restraints of
policy and the fiscal policies of Exchange into a large and finan¬ search
the
competitive
market.
They
Corpothe Federal Government should
must please
cially sound automobile insurance ration as a
the public.
Pricecome to a halt before we are up
company,
but also
to
operate wholesale rep¬
fixing agreements or other atagainst the razor edge of disaster.
profitably on its management fee resentative in
tempts to blunt the sharp thrust
We need a working majority in
of 20% of the premium.
Southern Cal¬
of competition are denied to busithe Congress which will agree that
nessmen
by anti-trust laws—and
Farmers Underwriters Associa¬ ifornia and
the
Government's
integrity de¬
rightfully so.
tion* started with a few thousand Arizona, it was
pends upon a stable currency.
By contrast, labor unions are
dollars capital and has financed announced by
I would like to have more time
out of earnings all its subsequent Henry J. Siexempt from such legal restraints.
to talk about the political respon¬
They are free to enter into nagrowth. The original 1,500 shares monson, Jr.,
sibility of businessmen in these
of common stock issued in 1928 President.
tionwide
combinations
to
fix
matters.
It is also a subject on
For the past
prices and conditions of labor
has grown to the present 1,800,000
which I have strong convictions.
14 years, Mr. \
that all businesses — large and
But that is another story. All I solely by stock splits and stock
dividends.
FUA now owns the Piersol has
small—must meet. Labor has li~ can
say here in closing is that we
cense to use force and coercion,
occupied by the Ex¬ been associ- *
businessmen have got to get into buildings
Thomas R. Peirsol
Business has a limited liberty.
changes at Los Angeles, Calif., a t e d with
politics with both feet. We have
lpading West
You would
think that labor
got to get down to the precinct Merced, Calif., Colorado Springs,
leaders would be among the most level in our
Colo., Portland, Ore., the San Fer¬ Coast investment firms, most re¬
own communities, be¬
nando Valley and at Kansas City. cently with Paine, Webber, Jack¬
concerned with the problems of
cause that is where
the selection
In
addition
it owns the
office son & Curtis. Prior thereto he
inflation. You would think that of candidates
begins. We have got
his
own
investment
the real wages of their member- to follow
equipment as well as 716 auto¬ conducted
through from the pre¬
mobiles.. There are no bonds, no business in Beverly Hills.
ship would be a first considera- cinct
meetings to the county con¬
tion.
bank
Instead, it would appear ventions and from there on to the preferred stocks and no
loans
as
all this
property has
that many union officials like in- state
New Henkle Branch
conventions, and we have
been financed out of earnings. flation and want inflation. Pergot to give close attention to the
ALLIANCE, Neb.—E. E. Henkle
haps that is a natural and human
Farmers Underwriters also ac¬
primary elections.
Investment Company bas opened
attitude for those whose job it
It
is
not
enough just to be quired in 1953-54 a two-thirds in¬
a
branch office at 515 Niobrara
is to get a wage increase every against inflation. We must take terest
(over 70,000
shares)
of
Street under the management of
year for their members. Inflation action in
the political arena to Farmers New World Life Insur¬
Willard F. Anderson. *
makes the job easier,
protect our system from recur¬ ance Co. of Seattle, Washington.
Let
the
unions
answer
the ring attacks of this arch
This
investment
stands
on
the
enemy of
charge that they are complacent democratic institutions.
books at $3,590,000 and has a cur¬

tion in labor and product markets

about inflation—at the risk of the

to be fully effective.

Some will argue that monetary
policy may be unfair and discriminatory. Perhaps so, but at least
it is general and indirect. Stop to
imagine how unfair, arbitrary and
discriminatory direct government

well-being of their own membership. If they can answer it. Let
them explain why they are consistently on the side of every inflationary political move—at the
risk of adversely affecting ' the
economic system which has treated

controls

them

the

roots—to

causes.

/ '

gram.

crease

And

public

office

who

will

resist

Outlines
Let

Remedial
outline

Program y

briefly what I

think is necessary..

Fiscal self-discipline and mone¬
tary policy are still the foremost
and strongest defense against inflation.

■

If the Federal Reserve had not

followed
1956 and

restrictive

policy

1957, the rise in the price

level would have been much more
severe.

There

are

many

monetary* policy

who argue that
can't
do
the
>

whole job. I agree.
The first and foremost
is

that

not

the Federal

have

financial

Reserve

jurisdiction
sectors

reason

does

over

•

all

of the economy,

Furthermore, we cannot expect
: monetary policy to serve as an
effective economic policeman, if it
does not have support. We cannot

expect monetary policy to guard
safety of the dollar, if Congress takes advantage of its immunities and recklessly breaks all
the monetary traffic laws.
We
cannot
expect
monetary

/ the

'policy to arrest inflationary

ex-

if Congress tears up all the
tickets by granting immunities
to labor monopolies and providing

cesses,
'

'special

treatment

those

who

claim to be hurt by general mone*

tary controls.
"

Theoretically,

perhaps,

mone-

^ tary policy could control the priclevel. But, realistically, we know
must be back-stopped by ap-

it
'

over

credit

and

rates would be. What

<-'■*

interest

life

and

and individuals!

death

power

T.R. Peirsol With

Nat'l Sees. & Research

;

field day

for politicians if they could completely replace the market in
governing the flow of funds! What
ness

over

busi-

Dewees W.

Carlisle

something to control not
union racketeering, which
has been clearly exposed by the
McClellan Committee, but also the
monopoly power of union offi¬

Dilworth, partner in
Jacquelin, New York

City, passed
age

away

of 69 following

Nov. 3 at the
brief illness.

market

value

Joins

than

George Eustis

(Special to The Financial Chronicle)

By the application of
its sound and energetic manage¬
CINCINNATI, Ohio—Donald E.
ment methods in the development Cowgill is now with Geo. Eustis &
of
this Company, new business Co., Tri-State Building, members
paid for has jumped from $12,000,- of the Cincinnati and .Midwest
000 per year prior to the acquisi¬ Stock Exchanges.
tion to $58,500,000 last year. Farm¬
*
/
$6,500,000.

•

Harold

ers

Willis passed away
Nov. 10 at the age of 65 following
brief illness. Prior to his retire¬

ment

was

officer

& Webster Securities
of New York.

■

Harold S. Willis

well,

Ultimately, Congress will have
only

rent

Dewees W. Dilworth

Stone

Corporation

New

World

now

has

$225,000,000 life insurance policies

•

.•

Goodbody Adds to Staff

in force.

(Special to The Financial Chronic!,e)

To supplement its own business
the management of Farmers or¬

ganized in

over

1935

Truck Insurance

Exchange to be managed by Truck

CLEVELAND, Ohio—Lawrence
S.

Weiss

connected

with

Co., National
Sixth Building.

City

Goodbody
East

now

(2010)

Offers Equip. Tr.
Stuart & Co.

Halsey,
associates

Nov.

Public

Ctfs.
Inc.

$3,-

sive.
certificates

scaled

are

yield from 3.25% to 4.15%, ac¬
cording to maturity, Issuance and
sale of the certificates are sub¬

In¬

authorization of the

ject

terstate Comxnerce Commission.
The

issue

all steel

500

Long
and

offering

the

are:

McMaster

and

Co.

Freeman

$4,262,500.

than

Hyder, Rosenthal & Co.
Formed in Albuquerque
ALBUQUERQUE, N.
Mex. —
Hyder, Rosenthal & Co. has been
fpirmed with offices at 112 Second
Street, Southwest, to deal in se¬
curities. Principals are Richard E.
Hyder and Maurice M. Rosenthal.

Island Lighting supplies electricity and

BOSS

Mass.—Gerald

TON,

Curhan and Frank P. Riccio have

relatively small and devoted primarily to airplane manufacture,
electronics and other light
manufacturing.
is

The population of Nassau and Suffolk
Counties has shown
of over 80% since

CO.,

1950, Suffolk gaining 92% vs. 75% for
While residential building continues at a
relatively high
level, the slowdown which began in late 1955 continued in 1957

revenues were

Gas sales

customers

gas

much

continued

51% residential, 21% commercial and 17%' ;
primarily residential. About two-thirds !

for

gas

house-heating, demonstrating

Sometimes, it. helpsf
stand

the

lerms.

context

Electric

nearly 10% over 1957,
weather) gained 18%.

and

gas

(due

revenues

part
/■■*.

cold

Investment Co.

814,000 kw„and is expected to increase to 940,000 this
summer peak, including 75,000 kw for air-conditioning,
was
around
680,000 kw).
The company sells a considerable
amount of power on balance to Consolidated Edison.

book

struction

explains why

Ihe

\
1
f

area we

serve
so

offers

much

llii
mm

/CROWING

,fe;-'

Wg,T

Write for FREE COPY

UTAH

Bo*

699, Dept. K

Solf lake

IfMlil

for

the

entire

quisition,
tion

expanding Suffolk County operations. The building, contain¬
ing about 100,000 square feet and accommodating 700 employees,
will be completed in the latter
part of 1959. Electric heat pumps

that

saying

it is not a facetious example,
however, to point out that somC-

•

thing like

such

connection,-

would

involved

use

as
as

rate base and:

ratp of return would have

r^ched^lhe*3poiiit of, uselessriess
as

property; Nor are

standards, since neither would

measure~wlthib reasonableHirnits

reserves?*' or £ in-- what it purported to represent. In

valuation

the

trations.the

revalua-

credit

that

the revalued

•.

if we had gone or were to go
far along the inflation road'

depreciation charges

base

and

reserves

and

fast

heating and cooling—the largest installation on., cTeasesMherein;Maxable;;rApprb-;^
the Island.
■ •"'/
r-'-'-'V. priate ti;eatment/is also .givehtto c^
inventories) and reserves are used gets too
Long Island Lighting Company obtains natural gas from sev¬
annually to counteract inflation eosts of
eral pipelines and in addition has three
water-gas plants, two
for these assets too.
My point is doubt if
catalytic plants and three LP plants, with a combined daily mann—
{simply this: when inflation con- derstood
facturing capacity of 27 million cf. The company has 20-year
thiues to a substantial;, degree it public.'
contracts for delivery of over 66 million cf daily.
It recently
used

and property^ produce the appropriate earnings,

little

which varies with the date of ac-

the

entire superstructure would still leave them
Now the company has purchased a 25-acre sec¬
tion in Brentwood to supply an additional
headquarters for the

signed

for

City 10, Utah

of 17.5 million cf per day beginning next
March, with increasing
amounts up to 32.5 million cf by 1960. This gas, which is produced
in Texas, will be transported
by Transcontinental Gas Pipeline,
company (subject to
LILCO buys gas from Tennessee Gas Transmis¬
starting in November will also purchase from Texas

not

pro-

of income, depreciationv property
or taxes if they agnore sub-;

costs,

changes

stantial

of a(jjUsting for currency depreciation? instead of putting all Or
most

t]ie

the

utility's

rate

calculation

base

today's

0e currency , Collar, therefore seems inadequate
m
which the measurements
The deal with Valley Gas is designed to
as
a
useful regulatory device if
expressed.
purchase costs and to avoid as far as possible, the
^
inflation continues much further.
I am aware of the psychological
impact of spiraling field costs.
The company has now completed
T. ' 4 t .■
its gas conversion program and all customers are-supplied withdifficulties involved in such re-y/\ :; Wanted:.' A Right Answer * u
determinations.;
straight natural gas, although some adjustment is necessary to re¬
Particularly*; in
:
For Capital
duce gas to 1,000 btu.
>•
weak
For the 12 months ended September 30, 1958 the company
"base
reported share earnings of $1.62 compared with $1.43 in theprevious 12 months. The company normalizes tax savings from^ +
„SV^^ phiht-oi how rriuch weightf to giYe
accelerated depreciation and if its accounting were on the
of ten M>esamey .productionv
the measurement
sion,

and

Eastern

Transmission.

stabilize

Colorado-Wyoming

system

accounting

perly usable for the determination.

FPC approval).

■

theory would, be. unand
accepted : by ; the

unavoidably necessary to
TliiS method' of putting on the
recognize "that the iesultsfof annate
of return all of the burden

replacing direct purchases from the latter

Serving in
Utah-Idaho

far away from current
money,
then one must
the

becomes

contract with Valley Gas Transmission for the purchase

00.

center

facetiously

Industry.

ouuni

nerve

able to function.

will be

opportunity
to

treasure

chest

^
.

the

of plant

significance, and that
depreciation appropriations based
on cost are also meaningless. Businees enterprises are therefore permitted
at
any
time to revalue

system, both electric
and gas. The building Is adjacent to
important air fields-• and they
underground rooms are so strongly reinforced that war-time de¬

AREA RESOURCES BOOK
New book

are

costs

have

The company some years ago completed a 77-acre
operating,
and storage center at
Hicksville, with underground control rooms
which

be drawn from French

can

would make no difference in the
end result if a;utility's telephone
numberMs; used as its rate bash,
provided onlyi that v the rateMf
•France; at Jeast—that the recorded' return Ms ' made" large Veribugh to

(the

Colony

between

for after more than
40 years of both "creeping" and
"running" inflation there - seems
to be a clear understanding —nil'

was

Old

gap

experience,

Generating capability was 886,500 kw at the end of 1957,-but
will be increased by a 186,000 kw unit late in 1958i* Peak load last
year

to^under-^ difficulties : as the

problem if one extends its ; today's dollar and yestefday's dolA good illustration in this Mar widens. One can demonstrate

of the sales program to obtain conversions from
revenues in a recent 12 months'- period were

success

are

use

widely: as is.rthat. the rate of return itself
almost' any ^needs to.la some stand-

vary as

case

ard of reasonableness. Generally
that standard is based* fundamentally on the cost of money,
utility operations than it is for with such additional allowarices as
almost any industrial enterprise^; are required for the factors vVhieh
because our plants and facilities
money costs do not by-Mhemselves
represent about 85%-90% «oT'?ail cover;-f

dwelling units per year. About two-thirds of the labor
force in Long Island is now
employed locally, while one-third
commutes to New York
City (in 1940 more than half commuted).
Electricity provided 78% of revenues in 1957 and,gas 22%.%
Electric

the

now

books.
The
effect
of
the premise is propertionately much more severe in

6G0

industrial.

For a long
time .there has been a theory that
a rate base as produced by the
utility's accounting system could
be used regardless of -price-level

violating

as the number of
permits, empha¬
sizing the trend to bigger homes. In the western section of
Nassau,
garden-type apartment house development continues at abc'ut 500;
as

~>'• M

-J 'X?" ■"

•

utility's

However, the valuation of residential building permits issued in

year

with

which

at prices

Nassau.

Mr. Riccio

State Street.

formerly

increase

did not decline

ifr,

the-years-the dollar ihas a reasonably; stable
purchasing
power,
That premise is being significantly
violated- in respect to the dollars
changes— with incidental adminreeorded for utility plant and for * istrative advantages and ease of
depreciation expense. It needs in-^regulation-—and that only the rate
creasing re-examirration as infla- i of return needed ^ alteration - un
tion prbceeds, for one does not * order" to produce the earnings rehave.
a
- sensible *. measurement
quired by current facts. The trotivvlien identical objects are stated
ble with that comfortable tlveoiw

Nassau;

Counties and in the Rockaway District of
Queens
This territory covers an area of more than
1,200
miles and has a population estimated at
1.828,000, of which
1,200,000 are in Nassau, 558,000 in Suffolk and 70,000 in
Queens.
Ihe service
territory remains predominantly residential, Industry

with Keller &

become associated

was

Suffolk

oil to gas.

Two With Keller & Co.

gas

square

1957

Hutchinson & Co.

erally is the assumption that over

New York City.

estimated

cars,

to cost not less
Associates

secured

box

.Thursday, November 13, 1958

mise^of-accounting systems gen-y practical consequence.

Long Island Lighting Company

maturing semi-annually June 1,
1959 through Dec. 1, 1973, inclu¬

■

'.y*-

By OWEN ELY

390,000 of Great Northern
Ry.
4Vs% equipment trust certificates

The

Utility Securities

and

offered

Continued jrom page

Halsey, Stuart Group

Chronicle

and Financial

The Commercial

gas

...

basis

Fin*! victory
cancer

will come from

the research laboratory. But

there are Victories today*

Many

be eared

eancere eat

that

Consolidated

Edison

and

some

other;New York

nf'nvpcpnt
fv Sh
present-day worth, as

costs

detected early

and

trlatld promptly. VtgUana

Pvl>Tfvcqfiri- in

thp

dollars

vTnrl-

tool
of measurement is
showing—the cold weather last Spring increased gas sales,
suspect„e
in ttfe
there was a large credit for interest on construction, and gas and
even
though it is regularlyiHiSed
It
to me
in the conduct of
electric rate increases were obtained.
The interest charged to
current,bustaess:.;P^M^^■■ H Si l j:
construction amounted to $1,418,000 compared with $655,000 in
operations. Nor, when these meas-.
rompntc
Of how much effect each of these
the previous period.
Moreover, the $1.62 was based on average shares outstanding of 7,241,000, instead of actual shares of about i
latory ;rauthbrities of^ wfiht
7,721,000.
^
The company received an increase of about $1- million in
urements would help them to find
^ ^
\„*„5,r'
gas

recent

StS'account

orp.

when

of^a^tility's

property' in 'Current dollars, and
how 111 ueh * to the measuremeht

Hflv

utilities which do not normalize, the share earnings would have V
been increased to around $1.93.
Several factors aided the good

;

li the key to this victory.

There

etrnals

seven

are

which might mean

cancer.

rates last

July

December, and
1958.

increases

effective

$2 million in electric rates effective
forma basis the amount of the rate

some

pro

the 12 months ended September 30:"
share after adjustment for Federal income

would approximate 80

eoald

taxes, leaving about 110 still to flow through.

car

mean

Victory

over can*

The

company

adding

now

large

new

t. A lump or thickening In the
breast or elsewhere. 1. A core
that does not heal. 4.
or

Change III

bladder

habits,

t, Hoarseness or cough. 8. Indb

taction Or difficulty In swallow*
♦ng I. Change in • wart or moto
If your signal lasts longer than
two weeta, go to your doctor te
If it

means cancer.

»•

AMERtCAN

CANCER
•OCIETV

when

unit

installed

and

smaller

the

off-year.: 1958 is
considered a favorable year in this respect and next
year, with
a smaller
credit, the gain in share earnings may be smaller. As
in the past, however, much will
depend on weather conditions,*
both with respect

to gas house-heating sales and the amount

electricity used for

summer

the

increased

refrigeration and air-conditioning.

A favorable factor for share

proportion

earnings

over

construction

the coming years

*^^

verse

own thnikmg Suggests

b^'Hughes

J>v-,
a

' :

■;
''".t':
I was
going up the,.stair

•

Ms
I met

at two-year intervals, instead
of every year.
accounting credit for interest on construction is irregular—larger

realistically

depreciated .^

Mearns

•?.

generating
Thus the

are

The impasse

well-known

a
"

electric

units

I.Unotual bleeding or ditchers*

bowel

-rency.

for you.

that,

appropriate to

during

Vigilance in heeding them

bases

-.rate

man

who

wasn

there

loasnt

l^ijiat. a supplier pFrisk capit|l
considei^.
consider

—

there

today
wish, 1 wish he d stay away?
*9*™

ionum

-ifl%dlistw«s

However,- like
man

the

that

and has the. right ^o

that he owns property,'

not Merely a dollar intertlt
therein.
and
he
does have
the
and

fabled rlittle

rights

to,ac^

where he

well

can

get the

the risks of own-

stairs, the problem of- ing'property.

This Vital distincthe rtion remains even if he is willing
value of the currency when deter- ~to:
accept'a-limitation against the
•mining rate bases just won't go fuU operation of changes in price
away simply by ignoring it.levels, up or down, because of the
coping

with

cash

the

changes

requirements,
r. public
nature of the business,
Cannot Rely Solely on
generated internally with the aid of tax
%
Under- this line of thought one
Rate of Return
issuing common stock every year, as in/
Jean reach the conclusion that the
1951-1955, issues are now being spaced further apart. The company \ '.
Admittedly, the rate base stand-? practical solution to the dilemma
sold 696,000 shares in
May this year (the last previous offering,
ing alone is not the vital item in in question is to give the worth pf
being in July 1955) and another offering seems unlikely^until>
this matter of arriving at the fair the property in* present-day dol1960 or 1961. Conversions of the 4.40%
preferred stock are also'* and necessary
earnings on the lars. the same weighting' as -the
increasing the equity.
capital investment. It is the prod- utility's risk capital bears to its
The common stock has been
uct of multiplying the rate base total • capitalization.
selling recently around 29, and
If, for inpays $1.20 to yield 4.1%. The price-earnings ratio is 17.9.
by the rate of return which is of stance, that ratio was 45%", then
'

which

savings.

now

-v

being

Instead

...

—

188 c Number 5794

Volume

.The Commercial and Financial Chronicle

(2011)
7- -.yj

45% vw eight

would
of

values

current

■

be j^ven 4o
utility's

today s dollars

to book costs.* cal dollars. Actually that is what
pragmatic-weighting would business and tax policy has had

lie between the extreme positions

their

in France: under

come

some

the

fundamentals

which

the railroad industry can illustrate
out of its longer
history^ It's a

giving complete recognition or inflation/ While as a practical
no recognition to present- /matter^ acceleration methods may
day do XXa r s.
By gearing the be more feasible from a political,
regulatory
viewpoint
weighting to the risk capital the tax," and
than are the "economic deprecia¬
^method would go a long way
toward meeting the requirements tion" methods which necessarily

of the forest

case

giving

portant than the ihdividual trees.

capital supplier, though
at the same time it recognizes the
wisdom

to the

formula

haying.

which

endeavors

quate

coverage

provide ade¬

example, one can compare
three major Eastern roads which

the, late 1920's and early 1930's
Earnings of Western Maryland
differed very little in their oper-,
during much of the year haveating characteristics, but of which been
adversely affected by the
only one avoided serious financial
drop
in
bituminous coal ship¬
difficulties.
Operating-wise it ments.
Also, the low volume of
would be quite difficult to tell
traffic received from the steel and
them apart: in their production of
other
heavy industries reduced
revenue per train mile, or in their
revenues.

Soimdness Is

periods.
.i Theremay be / better
.

operating ratios,
of shrinkage in

solving the problem;

continuing :inflation

during/" the

of
point is

ways

which is the prospect, and the re¬

simply that as inflation continues
its. distorting effects the problem
of how

based

and return on

to compute a fair amount
earnings which should be al¬

of, years and the degree of their sub¬
are sequent recovery therefrom, and
underlying particularly in their control of

single

as property, is used up.
An
interesting page one editorial by

ticularly /new risk capital) con¬
tinues to flow freely into our in-

George Shea in the "Wall Street
Journal'* of last Aug. 4 dealt with

dustrY,/ in/ad equate

of inflation;

effect

the

needed;
This

the

upon

industry in general.

It got to the

business

nanced out

new

from

comes

those

of the

savings,- whether
itself

mere

management,

growth

industry's eco¬
We are in

are/concerned.

tially. / .above / the

; prices
being
charged:/a comparison of today's

maintenance and

re- ,
to • financed
with
new
savings.
Yet that
is what happens under- infla-/
j

core

our/"strong" years. Certainly the
value, of our. products is substan-

yit > sells / new securities. - But
equally obviously, it is unsound
placement

far/aS,. the

nomics
■>

/ /
> Fortunately there is no barrier
at present to "financial soundness"

;

have

prices Witfi those of the depression

and

■

jtion.

/;/?//'•'.;/:■//'////

fL Certainly that in
is

situation

the

gas

and

our

;

There is

ume

merit is
the

now; have
from
new
would

tjie

to be gotten
that

the

for
origi¬

least

nished
dollars.

some

M believe that the
celerated

ings

for the

vol¬

stable level

support

our

And the de¬
products remains
In short, to the ex¬

necessary.

for our

tremendous.

'/V ;V.'

recent

are

mand

that

tent

ac¬

the

problem

selling

prices is.the deciding factor, there

depreciation provisions
tax" law
have

of / the,- income

quite substan¬

prices

securities; if and when more earn¬

those

raise

and prices of ma¬
Fortunately, too, it takes

/ available

user

supplied" 'should have fur¬

nally

only a quite moderate increase in
..our selling prices to produce sub¬
entirely stantial increases in the earnings

-savings,M whereas''it

appear

would

necessary

dollars

those facilities were

whom

business

—

was

increases, given

requip- terials.

new

additional

much

We are a business in which

productive than

Those

old.

suggests it;

how

of wages, taxes

iteven;; where

.co$tsL$ebd t© decrease

of/ the equipment which replaces
.:•••■

selling

our

given

tially.

article of
plant or equipment, and /the cost
for-

how little
lose

between the dollars
through depreciation

expenses

estimates

serious gap

recovered,

of competing fuels,

way

electric industries today.
a

happened to the prices

has

large

prewar/years, in the light of

what

even

that

one

italization

its

so,

of the

traffic

the* 1957.- If traffic continues to pick

dropped 20.1%
compared with the 17.3% average
for
the
railroad
industry.
The
in

that

fact

the decline

answer

lies

mine

1957

in the

products

of revenue

had

the difference
between
ior

bit

cap¬

lay in the balance

common

securities.

had

support per dollar
than did the other; but

equity and

The successful

sen¬
one

products 10%. Hence, it is
readily apparent that a recession
have

is bound to

adverse im¬

the road has cut

sharply,

penses

ex¬

Revenues in the
from

first nine months fell 20.5%
a

year

ago.

erating

During this time

op¬

reduced
and absorbed some 61% of

11.6%

expenses

were

the loss in revenues.

The largest

"financial, soundness" for it is an

industry whose major characteris¬
ticsinclude/like ours, a long-term

through
which

methods

in widespread

specifically

the

"economic

much

than

are

closer to the mark, of what

is reasonable and correct.

Under

eoncept the annual deprecia¬
effect; applied to
tion rate is, in

nfeed for large investment
*

annual

revenues,

public control over selling
buYs.

cussions

the matter

depreciation"

relation

prices.; Their experience is older

through their studies of what they

that

in
and

that the efforts
industries'
Depreciation

seems

Committees to clarify
caH

life/

in
avoid

use
.

trying to do.

even

are,

industry

our

accounting''

When

one

hears

dis¬

merits
of higher debt ratios for our in¬
dustries/ or discussions about
leverage in capitalization struc¬
tures, or arguments for more or for
less
depreciation - provisions, or
1
accounting theories dealing with
today

about

the

equivalents

while current liabilities

were $9,545,000. Working capital declined
slightly to $6,598,000 from $6,841,-

000

the

period.

end

the

1957

The railroad will have to

continue \ to
conserve
its cash,
however, because of the need of
meeting equipment trust maturi¬

ties and also the need of cash for
its expansion program and sinking
fund requirements. Consequently,
it is believed
dend policy

earnings

conservative divi¬

begin

recovery.

The

will be followed until
to

make

■

road

;/"

good
'./• ''O
physical
a

good
condition, reflecting the sums ex¬
pended in previous years on the
property;
Maryland

addition,

Western

maintained ; its
high level, even

has

equipment at a
This policy has enabled

this year.

Pittsburgh Exchange in Agreement With
Phila-Balt. & Boston Exchanges

investment markets. Even in 1930,
the first depression year,

they sold

$66 million.

But in all the years

since

the

then

sales

railroads'
have

stock

total

aggregated

Harry W. Besse, Hutchins, Mixonly $21 million; in more than a ter & Parkinson, President, The
Boston Stock Exchange, C. S. Mcquarter century the total sales
have been less than one-third of Kee, C. S. McKee & Company,
the sales in 1930 alone. Those to¬ President, The Pittsburgh Stock
tal sales were not much different Exchange, and J. Raymond Leek,
from one fair-sized issue by one Bioren
&
Co., President, the
gas and electric utility company Philadelphia-Baltimore Stock Ex¬
in one year today.
change, announce that an agree¬
There

also

the

lesson

that

"flow

com¬

31, cash and
totaled $6,656,000,

part in the reduction in expenses the road to hold the bad-order
was through roadway maintenance
car ratio down to 3.7%
on Sept.
and transportation expenses, the 1, one of the lowest in the coun¬
latter
indicating high operating try. This would indicate that as
the difference.
efficiency.
Federal
taxes
and business increases the carrier will
There is the lesson that a 'free
equipment rental credits also were
flow of capital into an industry,
receive increasing revenues from
important factors. Net income for
particularly risk capital, can end the nine months was off 43.4% the use of its cars by other, rail¬
rather suddenly. In the nine years
and earnings per share were $5 as roads.
/,'■ /'■■//-■"
'"/ "Z-V V ■
from 1922 through 1930 the rail¬
roads
were
able
to
sell
large
amounts of capital stock to the

and

remained

have

As of Aug.

35%; the greater financial sound¬
ness
in terms of ability to ride
through a period of shock spelled

accounting"

particularly if costs
control.
/>/;/ / /
the drop in earnings,

Despite

and manufactured iron and

enues

steel

has

ment

been

reached

whereby

members of The Pittsburgh Stock

Exchange

may

become

Associate

Members of The Boston Stock Ex¬

us.

include

and the
maintenance
of
investment
at¬
tractiveness. It is out* row to hoe,
and to do it successfully the pub¬
for someone else to meet,

lic
not

and

its

representatives must
my reporter friend

of The

"This rounding out of relation¬

ships between the three exchanges
will be of particular value in ob¬
taining new listings. Our studies
indicate

there

companies

are

number of

business

with

and

made

available

to -them

of them—Pitts¬
burgh, Philadelphia-Baltimore or
relationships previously estab¬ Boston. Markets will be opened
lished between our exchanges and
up thereby that coyer the State of
the Philadelphia-Baltimore Stock
Pennsylvania, New England and
Exchange, that have resulted in the Atlantic Seaboard all the way
the mutually profitable inter¬ to Florida."
change of business, 42 member
In commenting on the agree¬
firms of The Boston Stock Ex¬
ment, J. Raymond Leek, President,
change are Associate Members of
the Philadelphia-Baltimore Stock
Philadelphia-Baltimore as are 23
Exchange, stated; "The recent
member firms of The Pittsburgh
steady growth of the Philadelphia^*
that

"this

agreement

Stock Exchange.

"Orders between the Boston and

Exchanges

will

be
transmitted through the Philadel¬
Pittsburgh

phia-Baltimore
There

Stock

The

listing

on any one

rounds out

Exchange.

is now direct private tele¬

Philadelphia-Baltimore

Ex¬

Baltimore Stock Exchange is due
in

large part to the out-of-town
we
have developed in

business

cooperation with the Boston and
Pittsburgh Exchanges and as the
result of mergers with the Balti¬
more and Washington Exchanges.

"Philadelphia
volume for

Baltimore share

the third quarter in¬

creased 35.3% over the third; quar¬
ter of 1957.

This

was

accelera¬

tion of the trend of the first six

months, which compared favor¬
change will be extended to cover
ably with other leading exchanges,
business from this new source.
when share volume was up 11.8%
Transactions between The Boston
For the first nine
and Philadelphia-Baltimore Ex¬ over 1957.
changes are cleared by the

Stock months, share volume increased to

Clearing Corporations of the two

The Stakes are too

exchanges. Transactions by Pitts¬
burgh Stock Exchange members,

big for that.

phia which has been established
in Pittsburgh.

kets

Messrs. Besse and McKee stated

who did not know what we were

talking about.

trading floor in

own

will benefit from the broader mar¬

members

Stock Exchange.

burgh

correct

ferring some of them to the future

their

Pitts¬

Associate

essential

The

Pittsburgh and also on the trading
floor in Philadelphia, are cleared
through a branch of the Stock
Clearing Corporation of Philadel¬

stockholders located primarily in
the area of ' our exchanges that

well

phone communication between the
ingredients
trading floors in Boston and Pitts¬
determination
burgh and the trading floor in
of today's full costs of operation,
Philadelphia.
and
selling prices which cover
"The present system of clear¬
full current costs instead of de¬
ances between our exchanges and
of

both

members of The
Boston Stock Exchange becoming

change,

ization

it is likely that earnings will/
ahead of thfe previous year

fortable.

60% equity, the other about

./worked fairly well for most un¬
-f' V
•
Workable Tax Policies
whose financial structures were
regulated industries as a practical
.But! financial soundness" in- strong enough to bring them to
device-for coping with this phase
the point where
than
the
of .the inflation problem; but two .volves" more
proper
today the per
circumstances make a similarly determination of selling prices for share earnings are substantially
effective result /less feasible for our products, ^important as they better than they were in 1929,
utilities.
One is that the useful are. Workable tax policies on the even though they had to with¬
lifp cycle for most industrial prop¬ part of Jaoth our communities and stand the same bad shocks that
erty is apparently much shorter / also .the,Federal Government cer¬ affected the rest of the industry,
than for the utilities, and an ac-r tainly / have • a part.
Accounting Indeed, the growth in their per
ceieratioiv of that shorter period policies, have
a
part,
for the share earnings during the decade
of
what after the close of World War II
thereby - gets the effective re¬ proper,. determination
was
at
be met today and
compound rates of in¬
covery period down to a relatively costs should
crease
higher than the average
short time for most of the dollars what cpsts should be met in the
to be recovered:* The other is that future is: certainly more difficult performance of the gas and elec¬
mid mpre iignificant—when the tric companies.
industrial
enterprises '-: generally
The time to make certain that
can
and have charged the full changing Value of the dollar is a
fact tb be, reckoned with.
accelerated depreciation to - cur¬
Cer¬ financial soundness is a reality is
rent income and have been able tainly/ "financing methods and
during
an
industry's
"strong
:
to
sell their products at prices capitalisation Structures are a fac¬ years," when its economics permit
it.
We are in that period now;
which cover the high depreciation tor too./
The experience of the railroad but to remain so, we do need to
charges. "That is something the /
utilities. cannot readily do as a Industry/can give us much mate¬ handle with great care the large
practical matter — and is some¬ rial for /study, in this matter of expansion which still lies ahead

thing that the so-called "normal¬

run

finances

revenues,

up,

in early 1959,
remain under

accounted for 60% of freight rev¬

despite
these
general
develop¬
ments, there are major railroads

be maintained.

in the 1957

'' /•' >''•'/ :%•-/%///
showing improve¬

////••
traffic

and expenses
under good
control; it is possible that Western
Maryland could report better than/
$8 a common share for the full
year as compared with $12.20 for

months

nine

With

ment

common

twice

about

was

successful

reason/why financial sound¬
cannot

ness

and

equity ratio

/•/;/'

volume

The

first

with $9.33

compared
*

pact on the road's earnings.
However, the improvement in
general business conditions in the
great. It did not get into diffi¬ last
few
months
should
bring
culties.
: '■'/ r/ /• • '
v/i;/ / about a quick reversal of the poor
One can compare a major East¬
traffic conditions of earlier in the
ern rand
a
major Western road
year. Western is a highly efficient
which in the same period of years
operating property. Its basic ad¬
also differed little in their rev¬
vantages are those of a bridgeenue
production
and
operating
line,
having little branch line
characteristics.
One of the two
mileage and a 'small passenger
got into serious difficulties; the
business.
■'.■/ ////m J■■/■/':•/
other did not, though its revenues
Too
overcome
the sharp drop
shank just as much. Actually the
in

two;

policies need to be judged

during this period of big

capital that

business

regulatory;

was

three had to support a capitaliza¬
tion only about half as great, per
dollar: of revenue, as the other

and inflation.

the savings of investors to whom

between them

'^y Which the; useful¬

and tax

obviously it is sound
for growth to he fi¬

"Now,

end/^resdlt is the hard

ness

heart of the matter by saying:
-

recovery.

ahd; at reasonable costs.

depreciation expense problem, for
;

amounts,

during depression and
The notable difference

expenses

on.

ment

during

revenues

thought. It;is that financial
the capital invested does soundness is a "must," particularly
need to be solved in a practical, during dnflatiQh, ,if utilities are to
d6 their
way that may be somewhat differ¬
paj t pf the job of success¬
ent from today's methods:'
//>■• fully delivering the public's everThe second item for which right mountihg/requirements for meanswers are necessary is the de/ chanica 1 "energy. ^Financial soundness" co.Mes do\vn to the condition
preciation expense allowance, /
new
capital (par¬
the return/ of the capital invest¬ under;
of

lowed.

in the degree
their operating
the depression

for return
the investment,

provisions

sulting

Railway

period.

bnique TLeeds of the' utilities.

Financial

Western Maryland

the preferred
during depressed /' These observations about the
^regulatdry treatment of rate bases

stocks and bonds

being more im¬

For

depart from historical costs, they
unfortunately do riot seem adapted

-Of the risk

.**■ '

property- inyestment stated in the capitalization of construction
iind not in histori¬ overheads; one might consider

the

property and 55%
Vkuclv a

35
+

6,498,525 shares, as against 5,576,194 shares for 1957, up

19^%.'

(2012)

The Commercial and Financial Chronicle

Continued from page

ahead too

rapidly, we'll build ex- Continued
from
capacity
and a reeessioil; i :
3

cess

paqe
\

Thursday, November 13, 1958

t*r

-V.-

•

'::

•

be required to restore bal¬
ance.
If wage rates .risej too rap-,
idly, costs and prices will get
may

Cnnent Business Trends and

out

The Problem of Inflation

balance,

and

readjust¬

will foliov/:

ment

;

is possible that we shall not reach
full-capacity and a high level of
employment until late in the year
or early in 1960. It's important to
keep in mind what full capacity-

encourage

investors to shift from

stocks

bonds,

Perhaps the greatest danger is
particularly if that we shall blunder into a specare high by uiative boom
like the 1920's.

market prices

stock

historic standards

interest

Rising

—

they are now.

also

rates

That's

con-

GNP,

strict the flow of funds into gov-

$440-445 billion in
current dollars would have to rise

ernment-guaranteed FHA and VA
mortgages
where maximum in-

operations
which

imply.

would

now

to 160-165.

crease

current view that we

fall somewhat short of these
by late 1959, but that we
may
catch up early in 1960. I
should
warn
you
that business
may

marks

^forecasters Almost always under¬
an expansion.

rate the speed of
•Fm

impressed by the fact that
new
projection we
have
made in the past six months has
come up
with higher figures for
'1959. Much depends on the vigor
each

revival

the

people

what

business

could

fixed

near

and rising interest rates are unlikely to be a major factor in
checking an advance in business
activity and bringing on a major

possibly
that

years

longer?
One candidate
frequently cited for the

role of wrecker is the auto indus¬

try.

this
of

reams

devoted

the

you'll

new

copy
as

past record,

that

the

answer

has always been "Yes" in

business

are

models will sell.

the

discover

when

year,

question

examine

you

the

newspaper

whether the
If

season

periods

expanding,

was

and "No" when business

was

con¬

tracting.

while
lack

nroiectshave

failed

nS«

financing in periods
tight money in the recent past.
Discounts Inflation

inflation.
we've

I'm

had

\\re

This is not to deny the obvious
fact that styling is important. And

possible that

consumer

dis¬

hot'news

item

for
of
o

the

over

think

and

activity.
ties

are

However, the probabili¬
high that the public will

buy the number of
is

indicated

business

the

market.

unquote

that

cars

by long-term

auto

normal

new

trends

quote

year

1959

levels of income would call for
auto sales of 5^2 to 6 million. That

with

compares

this

some

million

year.

second

factor

that

has

been

fact

pace

fact,

advance

the

has

seldom, if- ever, been matched.
Long-term rates are close to the
highs reached in the 1957 period.
Short rates have gone
up in even
more dramatic fashion.
The

abrupt

terest

rates

about-face
reflects

our

Yet

factor

both

and

that

Federal

Market

wards

these discursive

re-

the end

that

erations in the

markets

fear

vestors

that

continue

the

going

are

op-

economy generally,

My;personal feeling is that
1960 and 1961 may also be years
of great prosperity—our principal
economic problem could be that
of producing enough to meet all

wide-

part

prices
rise

only

can

terms
on

early 1960,

(2)

The recent behavior of the bond

spread

may be back to full capacity

are

getting in the position of the boy
who called "Wolf" prematurely.
stock

1959

the

in-

psychology shifted to¬
more
rapidly. In fact,

ease

the market for
government securities in the first
half of the year which led to the

period

turbulence

the

money market around mid-year
is a development which

should

offer

fruitful

chiatrists.

emerged

material
any

from

case

this

for
we

psy¬

have

unfortunate

period, and the money markets
have settled down for the moment
with
interest
rates
somewhat
higher than I suspect the Federal
Reserve would

see

them.

•

Higher interest rates undoubt¬
edly
exercise
some
restraining

influence, in that people think
more
carefully about borrowing
when rates are
rising. They may

season

one

...

Reflecting the output hike, United States car completions for
jumped to a 1958 high of 126,672 units from 97,804 and
70,973 in the preceding two weeks. Truck building increased xo
24,955 from 18,178 last week. Airplanes, on "rush" orders, are
flying parts to many plants throughout the United States and
last week

Canada.

vv""

This trade

authority commented that the industry is showing
a
decided preference towards overtime in its car
assembly as
opposed to second-shift operations;.
\
"
~

The

dollar

value

of October construction put in
place fell
1%, less than usual, from the record September level, but was
3% higher than that of a year ago, the United States
Departments
of Commerce and Labor reported. Total
outlays for the first 10
months of this year were up 2% from the similar 1957

period.

our

containing

thing

(3)

I do not believe that anylike this is in prospect—if
avoid limited

can

The historical pattern would

take

contrast, the

average

That's

year.

crease

the

increase

average

in-

not

during

gone up

that

continue to

can

°w"

J?* UE
world£ sa!lie
r-ui^f5T^• m? Ruf.slan
^
continue
•

at Wl11 tax

simple.

increase pro-

°ur ability and will-

* e

obviously be very difficult for
V' fS' peop1^
e. maJor
a

the

world of

deal with the problems

Communists

are likely to pose.

Yet I for

one have full confidence that we shall learn how to
c°Pe with the external threat of

Communist expansion and with
the internal threat of inflation,

Our problem recently is
that wage rates have been
rising*

should also witness great economic growth and change. In

?ther words, they * should

per year.

year, whereas
to pay, out of

per

afford

could

prove

rising pro- interesting
and
challenging.
I
ductivity, only 3%. So prices have trust that we as a Nation shall
gone up 2% per year.
display the wisdom needed to valI see

improve

reason

upon

the

why

cannot

recent

and

credit

tionary

policies,

pressure

keep

under

I would expect prices to
advance by no more than
l%-2%
per annum

future

and

—

might do

even

Drobi™
problem

the average in the
I would hope we

balance
progress.

gets

out

idate

better.

SALT

LAKE

American
has

been

Funds
formed

CITY,
&

Utah

Trusts,

wjth

—

Inc.

offices

iormea witn omces at
2862 South State Street to engage
in

securities business.

Claude W.

Officers

Sherwin, Jr., Pres-

te1tf'foto»aSiCeCOn°.mi?
to achieve
constant

ident; Ralph v- Daniels, and La
L

Vere D* Poulsen> Vice-Presidents;

If
of

our

economy

business
balance

investment
and

moves

about

26,000,000

ingot tons,

evenly dis¬
85,000,000

15,000 tons

1957. District rates

than in the

were

Richard

corresponding week of

follows: St. Louis at 96%

of capacity,

5.5 points; Cincinnati at 85, up 2 points; Wheeling at
84.5, up
points; Chicago at 83, down 2 points; Detroit at 80.5, down ■»
3.5 points; Western district at
78, up 3 points; Buffalo at 75.5,;
up

1.5

down 2.5

points; Cleveland at 72.5, down 7.5 points; Eastern dis¬
change; Pittsburgh at 69, down 0.5 point; Youngs-

trict at 72, 110
town

64,

Strikes

change; and Birmingham at 60, down 3.5 points.

played

hob with automotive production last month.
Instead of assembling the
488,000 cars they had scheduled, auto¬
makers built only 259,000.
They have increased November's quota
from 500,000 to
531,000 and will boost December's

output if sales

reports
If

sufficiently encouraging.

are

carbuilders

not

raise

their

sights, they will turn out
510,000 autos in December and 1,300,000 in the
fourth-quarter or
10% less than the 1,450,000 originally
scheduled.-^;
.
If the

final

the

automakers decide to

make

lost production in the

weeks of the

year, their fourth-quarter steel
about 3,200,000 tons. Should assemblies
fall

requirements
10%

short of

original target, steelmakers will not lose 10%

motive business. The

of their auto¬
is that suppliers of auto
parts will be

reason

building inventories.

1959 to be

ing

capital

equipment

questioned

substantially better than, 1958, but they

boom before 1960. Almost all agree that the

"Steel"
are

expect

not expect¬

recession

is over.

Improvement in orders is reported for; construction equip¬
ment, machine tools, industrial furnaces and welding equipment.
Orders are slow for
heavy electrical, mill, foundry and'- material
handling equipment.
'•
5
•

Nonferrous foundries look
as

they wind

«•

to|l95,9;;for:bettei*;busihe^wplurne

disappointing year; Seeond half prdTefs show
some increase
over the first
half.:; Brass, bronze, aluminum and
magnesium, shipments dropped this.year because of
sharp curtail¬
ment

capital goods and

consumer-

products output.

"Steel's" scrap price
composite registered a 33 cents per ton
advance to $42.33 a gross ton last week. October's
composite aver¬

aged $42.25 per ton.
The

American

Iron

and

Steel

Institute

operating rate of steel companies will

capacity
2,029,000

for

the

tons

week

beginning

ingot

and

steel

Nov.

announced

average

10,

castings

that

the

*126.3% of steel

1958,
(based

equivalent
on

averaged

weekly production for 1947-49) as compared with an actual rate
of 125.2% of capacity, and 2,011,000 tons a week
ago. -

Output for the week beginning Nov. 10, 1958 is equal to about
Jan. 1, 1958 annual capacity of
140,742,570 net tons compared with actual production of

75.2% of the utilization of the
week

74.5% the

before.

For the like week

duction 2,003,000 tons.

month ago the rate

was

*124.7% and

A year ago, the actual weekly

placed at 1,990,000 tons,

*Index of production is

was

based

pro¬

production

*123.9%.
on

average

weekly production

for 1947-1949.

view of the future,

American Funds & Trusts

are

will

Electric Output Declined

infla-

control.

Thus,

against

the three months. The
year's total will be

over

castings

record.

«vn"Ve"L!°bytoteiiigPentdtaCx"

capacity

in the third, the metal-

ingot tons.

tri- ™ana<:r-

{"fH^Sito°+n^ecCiSe OU1i^rolS. aS-n

rapidly.

are

^eK?US~

Now everyone knows that
wage
have
been rising

Things

.,.

overriding as-

is .to be left alone in

since 1953.

rates

Production

tributed

Makers

iS?™

in prices in recent
peacetime years
has worked out to less than
2%
per

■?

World War II period. In the year
the
Korean
invasion
they went up 10%.
In

best, "Steel"

working weekly declared.

months.

Q1,

Korean

variety. We have only had
rapid inflation
in
the
past
in
periods of war or war's aftermath.

12-18

of the

wars

Operations will average about 74%
54.1% in the first two quarters and 60.1%

will

people mean an annual in- point to another
recession period
crease of
something like 4-5% m starting sometime in
1961—give

Operations Estimated This Week at 75.2% of
Ingot Capacity—a Record High for 1958

Fourth-quarter steel output will be the year's
magazine reported on Monday last.

economy

inflationary

pressures.

sharply. By this

most

prices.

Steel

demands

while

The

the speculation in

week's output reflected
delays in automotive buying,
demand for oil country goods and seasonal declines in con¬
struction items. Operations slipped half a
point to 74.5% of ca¬
pacity. Production was about 2,011,000 tons of steel for ingots and

ductivity—output per man-hour— * do n°t think that we shall
we can, and
should, increase wage handle either problem perfectly
and
rates.
Over the years we have in the short-run.
free reserves have been
Thus, I expect
pulled
managed to increase productivity that
down from $500 million
the years ahead will be
plus to
at an average rate of
the $100 million level.
almost 3% marked with turbulence. But they

towards restraint in
August.
.discount rate was increased

model selling

new

history.

poor

•

the current recession. Doesn't
that
mean that inflation is
inevitable?

investor psychology.
Reserve
policy shifted

your money.

<*) The

ability to grow
long period

Moreover, they've

anyone

^inI„h^ied t0 re8ister the
poults'
1

the

fear

in¬

change in Federal Reserve policies

•

sum

that

the

J™

following

the

investing

vic™hkh
~

Thus, prices about doubled in the

sharply in recent months.

1958, giving the

Last

mob

is the rise in interest rates.
that
interest
rates' have

risen

standards.

ontmnn

the

cited as having the potential for
checking the business-expansion
Note

Summary

that

MlSion I!a

prosper

ahead.

cfanriovHo

servative in

inflation

economic

explained

general

collapse,

expansion in general
business activity now underway
problem of inflation—I should continue, making 1959 an
is
perhaps
the
only excellent year for business.
By

and

result—sooner

tries to tout you into taking a flier
in the market—tell him to
go fly
a kite.
This is a time to be con¬

peculiarly difficult to
keep in perspective. In approaching it, I should explain that I
yield to no man in my concern

satisfaction with ever-longer and
wider, and ever-lower autos could
rise

clear

basic

are

historic

lem that is

slow

the

The

To put this concretely, and incidentally to give you what I believe is some good advice —the
stock marke* is high today by all

Spiral's

the

sure

some

could subvert

Upsetting Factors to Consider

for

business slump,

severe

fh^e nrHPr^of1 Iff 26^ ^Moreover
L
Vh^ Zrth'

domestic

;

relationship

jater—would

However, tight money and the
accompanying increases in inter¬
est rates represent essential steps
toward
our
goal o£ containing

two

have solved

Changes

upset the projection of good busi¬
the

values.

Resumption

for

worry.

we're

entire

there anything in sight that could

ness

that

not yet anywhere near
in interest rates this peril point. But we could
get
range of 4-6'% are un- there a we should lose our
colleclikely to have a crucial impact on tive heads, as we have in certain
investment
decisions
when
the
past periods.

slump.

within

wrong? Is

source

assume

the

investment.
Now

inflation, and that

billion by the end of terest rates are set by law.
In general, however, it is
Industrial production,
137, would have to in¬ personal view that tight money

year;

now

problem of the business cycle,
stock
market
prices and other
my prices will be bid
up to levels that

to $485-490
next

why the rise in the stock

market

level of

the worst send-offs in

Depicts Our Greatest Danger

T^aggart,

and Treasurer.

Secretary

Slightly the Fast Week

The amount of electric energy distributed

by the electric light
industry for the week ended Saturday, Nov. 8, 1958
at 12,311,000,000 kwh., according to the Edison
Electric Institute. Output eased somewhat the past week.
and

was

power

estimated

the week ended Nov. 8, 1958 output decreased by 19,000,000 kwh. under that of the previous week but advanced 397,000,000 kwh. above that of the comparable 1957 week and 789,000,000 kwh. above that of the week ended Nov. 10, 1956.

Car

Loadings Increased Slightly in the Week Ended Nov. 1
Loadings of revenue freight in the week ended Nov. 1, 1958
cars above the
preceding week.
Loadings for the week ended Nov. 1, 1958 totaled 674,477

were 213

cars, a

decrease of 39,517

cars,

5.5%

below the corresponding

5794

Number

188

Volume

The Commercial and Financial Chronicle

1957 week, and a decrease of 125,890 cars, or 15.7% below the
corresponding; week in A956/;/ " • vr;;
! 7;v7'-- *' ">\V7■ •' 1'"'7 -'

Car

Output Rose to

1958 High

Manufacturers Moved

Cotton

and

Last week's

output

car

and

rose

above that of the previous week]

19,178 trucks were assembled.

in the United
week and

22,643

Lumber

7-777

7.5%

were

stocks;

and

3.6 %/above

in;i957/' 5?

the previous week

Commerciai

and

week ended Nov. 6 from 299 in the

preceding week, Dun & Brad-

1956.

Also, mortality Exceeded by 23%

the

of 269 in the similar week of 1939.

Failures

involving

liabilities

level

prewar
.

$5,000, or more increased
A,rise among small
limited their toll to 53 from
37 in the previous week and 44 last year. Forty-six of the failing
to 278 from 262

last week and 222

a year ago.

casualties with liabilities under $5,000

I businesses had liabilities in

excess
from 17 in the preceding week.

groups

of $100,000, climbing sharply

total dollar volume

failed during the week in all industry and trade
except wholesaling, where casualties fell to 21 from 30.

/The toll among retailers rose to 173 from 155, construction conl tractors 55 from 49, manufacturers 52 from 45 and commercial

/ services to 30

Shoppers

ago.

were

a year

ago, spot checks reveal.

the period ended
unchanged to 4% higher than
year ago, spot estimates collected by Dun &
Bradstreet, Inc.
show. Regional estimates varied from the
comparable 1957 levels
by the following percentages: West South Central States +2 to
was

'•

•/\:-77"

7 777-7 V]"];7

",.,77:777";,

Apparel stores reported appreciable gains in sales of women's
dresses, sportswear and suits. Volume in most fashion accessories
matched

•

that

the

prior

week

and

overall

Jan.

women's

apparel
Although the call

moderately exceeded the level of a year ago.
topcoats and hats clinjbed substantially during the week,
total men's apparel sales were down from last
year. Slight yearto-year increases prevailed in children's clothing, especially boys'
sports jackets and slacks.

7::

' ;

;

wei;e living room chairs, bedroom sets and
terest in television sets and

Food

buying moved

in fresh meat,
fresh produce
canned goods

There

case

during the week,

witH principal

poultry and frozen foods. Sales
baked

and

gocds

were

;

marked

gains
dairy products,

steady, while interest in

slackened.,

was

rise

the

buying

television

sets,

radios, and lamps

regions reported
the

Middle

week-to-

Atlantic

States

edged to 106 from 103, while East North Central casualties jumped
to 60 from 41.
Contrasting declines prevailed in the East South
Central and Pacific

States, with the toll in the latter area off to
a week ago.
More concerns succumbed than last year
regions except the Mountain and Pacific States. Most of the

63 from 79
in all

regional upturns from 1957 were mild, except in the East North
"

Central -States where casualties more

than doubled.

Wholesale Food Price Index Improved Noticeably
The Past Week
The

wholesale

food price index, compiled by Dun & Bradnoticeably in the latest week for the third con¬
it reached $6.33, up 1.1% over the
$6.26 of the prior week and 2.4% higher than the $6.18 of the
comparable date last year.
■■■•;
Moving up in wholesale cost last week were wheat, corn, rye,
oats, barley, hams, bellies, cottonseed oil, cocoa, eggs, potatoes,
steers and hogs. Lower were flour, beef, lard, raisins and prunes.
The index represents- the sum total of the price per pound of
31 raw foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.

street, Inc.,

rose

secutive increase. On Nov. 4,

at most wholesale centers the past week as
retailers prepared for the Christmas season. Volume was
close to
that of a year ago. Attracted

by several openings, buyers stepped
their orders for Summer outdoor furniture and interest in up¬
holstered chairs and bedding equalled that of the
prior week.1
Volume in floor
coverings, draperies and linens moved up ap¬
preciably from that of a week earlier.
+
/

Apparel wholesalers reported a noticeable rise in the buying
Spring dresses during the week. Showings in the
coming weeks are expected to stimulate sales of Spring coats and
of

women's

suits. Re-orders for Winter
sustained at

were

the

call

Index Moved Moderately
Higher Last Week

Although the daily wholesale commodity price index, compiled
by Dun & Bradstreet, Inc., fell to 275.01 on Oct. 28, another new
low

for

1958, it rose during the rest of the week and reached
Nov. 3. It compared with 275.32 a week earlier and
the comparable date a year ago. The increase in part
was due to higher prices on steers, lard, hogs, rubber and cotton.
Although most grain prices climbed somewhat at the begin¬
ning of the week, they subsided at the end of the period. The lack
of domestic buying resulted in a noticeable dip in wheat prices.
Export demand expanded substantially with India and Taiwan
the principal1 buyers. Reports" that Russia was negotiating with
Yugoslavia, France and the United Kingdom for sales of wheat
discouraged some buying.
There was a noticeable rise in corn receipts as the harvesting
pace picked up and buyers were more selective. This held corn
prices below those of a week earlier. Purchases of rye and oats
lagged and prices were down slightly. Increased buying of meal
and oil reduced soybean supplies and prices were close to those
of the prior week.
Although flour buying sagged during the week, prices re¬
mained steady. Except for substantial purchases of flour by
Pakistan, export sales lagged. The United States Department of
Agriculture is expected to buy shortly large quantities of flour
for overseas relief. Rice buying slackened somewhat at the end of
the week, but prices matched those of the prior week.
Interest in cocoa fell moderately and prices declined some¬
what. Coffee prices were steady despite a drop in orders. Although
domestic sugar buying lagged through most of the week, prices

dresses, coats and fashion accessories
high level. A noticeable increase occurred in
winter clothing and sportswear as retailers

boys'
sought to replenish depleted stocks. Interest in men's apparel slid
moderately from the prior week.

Trading in wide industrial fabrics and man-made fibers rose
again during the week. Stocks in some lines were limited. While
purchases of woolens and worsteds moved up fractionally, the

buying of carpet wool lagged again. Despite slight increases in
sheetings, overall transactions in cotton gray goods remained
close to those of the preceding week.
New England dyers and
finishers reported that
incoming orders matched those of a week
earlier.
An upsurge occurred in the wholesale
buying of frozen foods
last week and stocks were light. While the call for canned
goods,
baked

Wholesale Commodity Price

for

goods and

meat and

some

dairy products slipped, interest in fresh

poultry climbed moderately.

Department store sales
the

Federal Reserve

1958 advanced 5%

Board's

index

276.22

ing week, Oct. 25, 1958

four weeks ended Nov.

1, 1958,

matched those of

week earlier.

Hog receipts in Chicago were up sharply during the week,
but increased buying held prices at the previous week's level.
Purchases of steers moved up somewhat and prices were slightly
for FRASER

Digitized

the

for

the week

taken from
Nov.

ended

above the like period last year. In the preced¬

276.68

increase of 3%
a

was

gain of 4%

period Jan. 1, 1958 to Nov. 1

1958

reported. For the

was

registered. For

change

was

recorded

from that of the 1957 period.

Retail trade sales volume in New York City iirihe past week
from 2 to

rose

aided by

5% above the level of the similar week

Election Day sales of ready-to-wear

According to the
store

In the

the week ended Nov.

preceding week, Oct. 25, 1958

increase of 3%

was

noted. For the period Jan.

crease

was

registered

1, 1958

was

that

the

Co.; The

continue

litz.

Herrman &
Co.
was
formed in 1939 by Mr. Cahn and
Henry

the late Mr. Herrman.

Offices

pany

the

will be at

enlarged

com¬

Wall Street,

where Halle & Stieglitz presently
maintains its headquarters. Halle

operates
a
J. In
addition,
the
firm
has
long¬
standing business connections and
correspondents in London, Gen¬
eva,
Paris, Zurich, Amsterdam
and other European and South
&

Stieglitz

also

branch office in Newark, N.

American financial centers.

Halle,

corresponding

period in 1957.

of the cojoined Halle

son

founder of the firm,

&
Stieglitz
immediately
after
graduation from Yale and has
been a partner since 1914.
Mr. Cahn
a
1933 graduate of
Princeton University, is a native
of Chicago.
Prior to the forma¬
tion of Henry Herrman & Co., Mr.
Cahn was affiliated with A. G.

Inc. He has served
committees of
Investment Bankers Associa¬

Becker & Co.,

various national

Hyde, has been a partner of
Henry Herrman & Co. since July,
1955, prior to which he was con¬
nected with The Hanover Bank.
Mr.

re¬

increase

1, 1958 to Nov. 1, 1958 an in¬

above

will

tion of America.

increase of 4% from that of the like period last year.

Herrman

firm

by Mr. Halle under the
long established name of Halle &
Stieglitz. 7-.
:
-.7,./
"The merger of the two firms,
subject to New York Stock Ex¬
change approval, will be benefi¬
cial to both organizations and will
enable each firm to complement
each other's facilities," according
to the announcement. Through its
long time membership in all the
principal
exchanges,
Halle
&
Stieglitz conducts a general secu¬
rities and commodities business,
as well as participating in invest¬
ment
banking activities.
Henry
Herrman & Co., in addition to the
brpkerage
business,
is
actively
engaged in underwriting and dis¬
tributing industrial, public utility,
railroad and municipal issues.
J.
Hindon Hyde,
presently. a
partner in Henry Herrman & Co.,
will also join the new firm as a
general partner.
■
Halle & Stieglitz was founded
in 1889 by the late - Jacques S.
Halle and the late Albert Stieg¬

the

merchandise.

ported. For the four weeks ended Nov. 1, 1958,
7%

a year ago,

Federal Reserve Board's index, department

sales in New York City for

showed

Henry

new

Mr.

country-wide basis

on a

headed

goods. While in¬
major appliances expanded fractionally
from a week earlier, sales fell
moderately from a year ago. The
call for floor coverings, draperie&iand> linens*remained close
to the
comparable 1957/level. There was a islight gain in volume in

kitchenwares, china and glassware.-

1, 1959, it was announced
jointly today by Stanley J. Halle,
senior partner of the 69 year did
firm bearing his name, and Wil¬
liam M. Cahn, Jr., senior partner

...

Increased buying of furniture
helped hold purchases of house¬
hold goods close to the similar 1957 week. Best-seliers in furniture

from 20. Casualties fell short of last year's level
manufacturing and wholesaling, but continued above 1957 in
other lines. Retailers suffered the sharpest upturn from a year ago.
in

Stanley J. Halle

Six of the nine major geographic
week rise in failures.
The total in

year

of-retail, trade in

Wednesday of the past week

concerns

Stock
as1 of

*■.

for men's

street, Inc.; reports. Climbing to the highest total since June 26,
casualties ranged considerably/above the 266 a year ago and the
219

increased slightly from

to +2%.

and 3.9%

to 331 in the

York
merge

+6%; New England and South Atlantic -f 1 to +5; Middle Atlantic
-{-4; East North Central, East South Central and Pacific Coast
to +3; and West North Central and Mountain States —2

;

industrial failures continued

New

plan

0 to

Business Failures Continued to Rise the Past Week

the

—1

below production. Unfilled orders amounted to 35%
Production - was*/2;<4%
below; shipments 7.1% above

orders. were

new

firms

Exchange

Week Ended Nov. 1, 1958

above the.like week

Nov. 1, 1958 were 4.5% above production, according to the "Na¬
tional Lumber Trade Barometer." In the same period new orders
of

was

The

Stieglitz and Henry
Co., both member

primarily interested in women's apparel, furniture and food prod¬
ucts. There was a slight rise in sales of new
passenger cars, but;
volume remained noticeably below

Shipments Climbed 4.5% Above Output in the
,

a year ago.

Herrman

year ago.

cool, clear weath¬
spending last week. Vol¬

;

i Lumber shipments of 462 reporting mills in the week ended

Merge January 1st
Halle

Extensive Election Day sales promotions and
in many areas encouraged consumer

ume
;

v..:;'-.

This compared with 19,178 in the previous;,

States.

season

Trade Volume Boosted the Past Week
by
Election Day Sales Promotions

// Last week the agency reported there were 24,955 trucks made

143,000 in the comparable 1957 week. Exports for the

the

by 28,868 units, while truck output increased by 5,777 vehicles
during the week. In the corresponding week last year 97,804]
cars

trading on the New York Cotton Exchange was sus-]
level of the prior week and prices rose slightly.

the

1,159,000 bales in the similar period

126,672 units and compared
previous week. The past week's
production total of cars and trucks amounted to 151,627 units, or
an
increase of 34,645 units above that of the previous week's
output, states "Ward's."
v
~ "
in

steady and prices matched those of

totaled

output

car

(revised)

97,804

■•']'■'■/-./'7'7,777 ;; •:7;7/r.";

through Tuesday amounted to about 737,000 bales compared with

two-year low as a result of strikes.

Last week's

with

was

7.:.1

Exports of United States cotton in the week ended Nov. 3 were
estimated at 44,000 bales,
compared with 33,000 a week earlier

;

Passenger car production for the week ended Nov. 7, 1958,
according to "Ward's Automotive Reports," climbed to a 1958 high
as
manufacturers sought to build up new car stocks which on
a

week earlier.

tained

Nov. 1 sank to

higher. Trading in lambs

; a

„

To Build Sub-Par Inventories

(2013)

George

W. Nubel, Jr., William

Prosnitz, Stannard B. Knothe
and Robert A. Nubel, will con¬

tinue

general partners in Halle

Stieglitz in the same capacity.
Louis
G.
Strasser
and
Louis
&

be limited partners
the; enlarged organization.

Strauss, will

Joins McDonald & Co.
(Special to The Financial Chronicle)

CLEVELAND, Ohio
H.

Steinbrenner,

filiated
pany,

with

—

Jr.,is

McDonald

(Special to T*e Financial Chronicle)

William
now af¬
&

Com¬

Union Commerce Building,

members

the

New

York

Midwest Stock Exchanges.

With Edward N. Siegier

and

CLEVELAND, Ohio—Richard E.
Mayer is now connected with
Edward

Commerce

Siegier & Co., Union

Building, members of

the Cleveland Stock Exchange.

With Kidder,

Peabody

(Special to The Financial

Chronicle)

Robert T.
affiliated with
Kidder, Peabody & Co., 75 Fed¬
BOSTON, Mass.

Morse, Jr. is now
eral Street.

—

The Commercial and Financial Chronicle

(2014)

Continued

from

page

competition and, protect

American Industrial Management
And Our Anti-Trust Laws
ignore the best
public in general,
of specific groups such as em¬
override

not

interests of the
or

ployees, customers, residents of
plantcommunities, suppliers and

No matter what kind of business

manager heads, no matter the
size of that business,
the good
a

manager

of his decisions

uncertainty which

things
agree

strangulation.

heard

our

Ambassador

Great Britain say a few years ago

public and no decision is that one of the greatest misfor¬
knowingly made that will not ul¬ tunes that had come to Great
timately be in the interest of the Britain was the fact that they had
general public as well as the busi¬ no laws there to prohibit monop¬
ness for which he is making
the olies, trusts or cartels. He had

other

situation,

instances

controls

tive.

condition

the

seen

which

great
many
industries in that
relations,
country had gotten themselves be¬
particular, has been an area
cause of the absence of real com¬
where management has accepted,
petition.
voluntarily, more and more re¬
In
America
it
was
different.
sponsibilities beyond the matters
cf
wages,
fringe
benefits and Seeing that uncontrolled competi¬
working conaitions. All of these tion was leading to a situation
responsibilities are wrapped up where the consumer wasn't prop¬
in the idea that you can't really erly protected against the unfair
separate the primary interests of actions of giant trusts, Americans
a company from the primary in¬
rightfully
decided
that
certain
terests Of its employees.
governmental controls were neces¬
The recognition by management sary. Thus came into being — for
that its responsibilities go beyond protection of consumers — the
Sherman and Clayton anti-trust
making and selling products is
visible
all around
us
today in laws, in 1908 and 1914, respective¬
such things as the great amount ly. These laws were needed and
of time and energy
devoted by they've been good J^or oqr country.
The field of employee

as
individuals to all
civic, educational and
activities,
locally 4 and

managers

kinds

cultural

The

mands

that

laws

business

and

industry

educa¬

tional, health and welfare causes.
Opportunities Based
There is
dustrial

one

service

Merit

which in¬

has

management

per¬

formed for this country which I'd
like to mention at this point. From

the beginning of industrial man¬
agement, we have had countless
thousands of

men

who

the

and

United

which

sense

protection of

proper

sumers

nationally; and in the tremendous
sums
of money
contributed by

make

can

de¬

anti-trust

good economic

be easily understood

interpreted.

concerned

con¬

States

have

Right

about the

now
I'm
trend

recent

of thinking of those persons re¬
sponsible for enforcing the Sher¬
man and Clayton laws.
In recent

they've been developing
some disturbing philosophies as to
what those laws really mean.
years

Penalizing the Successful Firm

started in

They have even gone so far re¬
lowly apprentice cently to say that a given com¬
job and moved up to important pany, because of its ability to
executive
responsibilities.
More manufacture
and
market
good
business in

than

any

opinion,

other

group,

industrial

established

management

this

country

the

principle that a man should be
picked and rewarded for what he
contribute to society as a man,
matter who he is or whence he

can

camel

The opportunity for a man
the bottom and work

start at

his

way up—if he has what it
takes in initiative and ability—is

now

;

m
m
I
I.
City Bank credits Federal Reserve's willingness not1
to hold down interest rates for
Treasury's success in marketing
large volume of short terms and in keeping them generally
.

National

away

from commercial banks' portfolios.

classic illustration of how tight money

rates,

money

can

This is cited

policy, producing higher

hold down bank deposits and earning assets,

despite deficit financing. The Bank finds that this, however,
does not resolve the Treasury
Billion Problem" wherein

many-

governmental*

the increased deficit weakens U. S, bond sales

and, ironically/.;
more bonds could be sold if deficit
financing demands were
more modest.
Recommends, one, restraint on spending and,,
two, Treasury should try 4% rate for government bonds. ;j:

affecting

And I believe everybody has

American tradition. It has

spread past business and industry
to all parts of American life, and
it has been good for the country.

products efficiently, may become
a monopoly and, therefore, shoul 1
be

restrained

means,

ful

in some way. This
in effect, that the success¬

is subject to

company

penalized because of its

being

success.

Personally, I believe that most
of

the businesses today

are mak¬
effort to live up to the
letter and spirit of the law. But

ing

every

when t,.e government agency be¬

gins to

that your potential
because of efficiency in

reason

^v rf/tinJv ^

ponunue'
«

Now

C;- /

•••

to summarize:

••*•

finniiWaw
siunmary

^5rJnt
l!v nnnHnfia
?f

■

decision.

business and
industry, management faces a per-"
plexing problem which puts a;
to damper on its freedom and initia¬

economies of their countries were
near

In this

Thursday, November 13, 1958

Success, Irony and Problems in Meeting the

■

tion for management to handle. I v
simply speak for clarification, a
definite policy by government re¬
garding
unfair
competition,
so*

pretty/much their own
They proceeded to sit and
among themselves until the

the

now ex-

practical, so they decided to adopt
monopolies and cartels. This led that industrial management
may.
Once in being, have some idea of
what it can and
the monopolies and cartels had
cannot do.
■■'-V'■'

always -concerned

about the effects

The

ists about what is right and what
is wrong is a very difficult ques¬

to economic chaos.

way.

others.
,

consum¬

not to protect the inefficient;
producer.
;
i
ers,

;
,

$12 billion Federal deficit problem

and technical

November Monthly i Bank during/T95^9 ;w
increased- still;
Letter of the First National City moire as the Treasury seess to ;
Bank of New York analyzes our Vraise additional billions to meet

■

its commitments.

;

Plans

are

now

of the Treas- forming to raise $3 billion in No-

success

ury
deficit financing.
vember and the prospect is for.
ox ireedqm we have;
The:Bank Letter points out that 'cash offerings ofc refundings every
country has made it pos- .''during /October
the
Treasury c month or two from then on to the
sible for us to have a growth and covered its immediate
ea..uend of 195& or beyond. •
•
development—materially, socially quirements by-the sale• of .$2.7
v"">*• •
and culturally—such as the world billion
3^4 % / special//Treasury
Where the Securities Have Gone
has never seen. Through the exer- bills due
May la, 1969 and $l.z V "It is.generally held that short¬
cut: of our initiative. and;the use billion 13-month no.es due
-Nov.
term iinancing is inflationary be- of our abilities, individually and
15, 1959.
With $5.6 billkoiV- ber^f cause/short-dated,- securities ..are
in
groups,
we
have made our rowed in August on tax anticipa- most apt to be purchased by corncountry a world leader, a beacon tion certificates due; next March,-mercial banks with effects of in-,
of light for the whole world to -and $800 million obtained
in re- ./creasing
deposits and thus; the

The kind

this

•

look at.

cent weeks by adding $100 million

Industrial

management has

led

the way to

steadily rising productivity which, in turn, has made
possible a better and better standard of living for our people. When
you
how well off- the
compare
average American is against the
average person in Europe, it's easy
to see the great difference irtfawr
of

the

American, whether it's

the basis of income, personal com-:

forts,

leisure time, health, or— .
quite important—opporto better himself, to lift
himself by his own ability" and

what' is

iunity

initiative/
Looking

;
toward

:
the

fuW

'money

supply.'

Despi te'

the

to each of eight issues of 91-day multi-billion increase in short-,
Treasury bills, the Treasury has term Treasury indebtedness Since
raided $8.3 billion through cash "v.,July, however, neither bank desales
of
marketable
securities posits nor bank holdings of govsince July 1, the beginning of the ernment securities have increased
19S9 fiscal year. /- :•/; >''*>■">' >/'■• \ significantly* For the-weekly re->
"Thus it might seem .that the /porting member banks total secuTreasury is well along, toward ritv holdings (of which U. S.
cpverinS its $12 billion .deficit, issues are most important) were
But this would be a superficial only $10 million higher on Oct. 22
conclusion. For one thing/ $2.8 than .on July 30. Deposits (leavbillion of this borrowed money./ing aside U, S.. and interbank
has been used to pay maturing se-/categdries) were .actually down
curities in cash. -1,
$112 million. >/ >'•/> >>> •». •
/ "More important is the fact- that^
"Contrary to many impressions,
all the regular '.marketable seeu--the main market for short-term
,

I'mrities sold since ^ % will fall securities

ZSldup

today-is-f outside,. ..the;

among corporations and,
other holders of liquid funds. As
financing -of, July 31, for example, there
^• of the deficit has been postponed, were $67.8 billion marketable
past ana soivea mem.
/>-.
•
/Since short-term obligations also government securities due within
I don't want to try to predict; were used to refund more than one year, of which $22 9 billion
where we'll be, for example, 20, $13 billion obligations which came'; were
held by Federal,THeserve
\n

and have to ^ refinanced be--'banks,

fore tIle close of the calendar
year
Thus 'permanent'

from today.

I've heard and
thinking, kpowledgeable people have had to say<
about the advances likely to come

years

read what many

in the next 10 to 20 years in trans-

portation,
communication,/agriculture, health, and other thingsso
important to the /individual.What they predict is amazing. If :
it comes—and I think it will—the.

future is brighter than it has ever
been in our history.
>
You
pre

can't

disagree

with

due in August and September, the Banks and U/. S»
Government '
volume of marketable; Treasury/ trust funds. Of the remaining
securities
requiring refinancing $44.9 billion of public 'holdings
during the 1959 calendar year" less thafi one-third Were held by,
(excluding regular 91-day Treas-r •commercial banks. The following
ury bills) has been increased from" table shows how the proportion
$16.9 billion as it stood on June 30 ; of bank holdings of government
to $37.9 billion as of Oct. 31. Fur?/securities bulks up in 'the 1-5. and »
thermore, it seems almost certain 5-10 year maturity ranges. ;The
at this date that, the volume of: smallest bank participation is, of
securities requiring
refinancing course, ;at the long end./ .. ;

Distribution

these1

•-

Privately Held Marketable Public Debt
as of July 31/1958
/ / // ' .>
(Dollar figures in millions) :
; j
,

By Maturity,

ictions very much wherf you'

power,
/ think back 20 or 25 years.
We
serving consumers, is so great that
% rield by
;
Total
HeW by
would have thought a man was
"Conmierc'l
you
may
create a monopoly, I
Privately
ConBercl
When I think of all the services think
Held*
Banks
Banks
they are losing sight of the crazy then if he had accurately
management has performed for reasons
predicted where we'd be today.
Treasury bills (due within 91 days)
'18.8%
$20,653
why these
laws
were
$3,886
this country, particularly during
As a matter of fact, I don't know
Certificates (due within 1 year)__^ - -12,374
26.7
passed in the first place—to pro¬
3^07
the last 20 or so years, the most
of anyone who even dreamed then
Notes and bonds due within Uyear-' 11,863
tect consumers.
51.7
6,132
of conditions that exist in 1958.
amazing thing is that these could
Notes and bonds due lit 1-5 years—:
64.0
38,541
24,673
My only reason for bringing
be done despite the fact that the
Bonds due in 5-10 years
65.9
i_~
v
21,575
14,223
this matter up is because I believe
Industrial management, if .it is;
job of management has become so
Bonds due in 10-20 years
19.8
23,508
so
4,646
firmly in competition as a going to continue to perform valu-;
much more complex in our rapid¬
Bonds due in over 20 years./l.^.
7.9
524
6,650
able services for the nation, has a
great strength of our, country. I
ly-changing
economy.
Manage¬ hate
to see business
in general definite responsibility right now
ment is constantly faced by new
Total
/
$135,164
harassed and put to great effort to get ready for the great growth
$57,391 > -42.5%
problems, new stresses and strains,
and expense on matters that should that is sure to come* I know,
that;
in its efforts to keep pace with a
^Excludes holdings of Federal Reserve Banks and U. S. Government investment
be reasonably clear to any fair- we in our business figure that our
accounts.
growing country.
minded man, be he a government greatest problem
over the
nextSOURCE: U. S. Treasury Survey of Ownership.
For example/ one problem which
several years will be to develop
official or a judge. really concerns everyone because
/The fact is that, when Federal/.
A Classic Illustration
The economy of America has management talent—to have menf
of the importance of
competition
"Thus we have a classic.illustrachanged so radically since the ready to manage a growing busi- Reserve policies are- addresse^ to J
to our economy is t. e
question of
ness.
We know if we don't have restraining .inflation,
short-term tion of how a res^rictWe credit
Sherman and Clayton Acts were
Federal Government controls of
those men ready to meet the chal- securities SUeh as th<5se~e#fered in
passed that 1 believe this country
...policy, jproducing higher money
competition.
lenge of a growing population August
new needs a new
and
October
tend
to rates, can fiOld down-bankgcteposits
approach to the
Competition has not only been
which must be served, we'll be in/gravitate into the hands of coran(j earning assets in
question of the Federal Govern¬
face of
a
tremendous economic stimulus
real
trouble.
I
thLk
weU
be porations
and
other
nonbank Treasury deficit
Pnan^ng. What
ment^ controls of competition, one
in the United
States; it has also more in
happened
was
that '^e
banks
keeping with the nature ready, and I think industry. in - short-term investors.
been of immense value to con¬
general is going to be ready with
of today's economy.
"The
redistribution
of
new /initially
took oil the biVk bi the
sumers in terras of new
products
manpower to handle the growth;
and new services.
^
new securities as un "erwriters.
of the future.
treasury security issues 10 non
Suggests Three Antitrust
pressures ori their res" "s
•

•

■

■'

Our Competitive
-

System

Principles
I

think

this

sure

the

comrntr

years,

bank buyers WOuM

to sell off the -- irities as
Reserve had quickly as buvers cn-" he found,
hold down r "With the Fedf^rt1^ orve. dis-

approach will bring with them some sur- curred if the Federal
One of the major reasons
why should be based on three
simple prises and many new problems/been concerned to
this country jumped so far ahead
principles.
First, competition is But if we as a nation have the.
pf Europe during the first half of
money rates. The nonbank market
good and necessary. Second, cer¬
this century has been the nature
tain. legal controls
®££a^rs^asr would not have opened up and
of c&tiipetition
of our competitive
system; In Eu¬ are
good

rope they had the
tense

competition

idea that in¬ these
wasn't

really

should

new

and necessary.
Third, our
legal
controls,
however, fear
be designed to preserve deal

freedon^

forward to.

courlt rates at 2%

short-term

~ Vields

Treasurtes»/^

to1 banks (including the Pederal Re-/of 2% to,in / /

about the future and
to look

forced

hme oc: them

great.serve

itself) would have held, the.

additional securities.

v.-

temptation

banks to bbrrow fir-

'
-

range

October,
^red

for

Federal

18£r

Volume

Number 5794

The Commercial and Financial Chronicle

(2015)
Reserve

defer

the panies, mutual savings banks, and
obliga- other institutional
investors
to
tions/This-temptation was reduced- purchase more - Treasury bonds
and

newly-issued

selling

Oct. 24 when the Reserve Banks and thus assist in combating inbegan a sequerxe of '<Hscount"rate i;flatianary pressures* :
^
increases to.% V2%It banks should / "These savings institutions, of

Tbe;

Treasury

a_te^ency ^ .^ke on^oo

"The

Trouble
^

bonds

ended

year

; placing

during

"•

June

the
1958

the

market, at rates
own problems. 1 ranging:from 3% to 4%, $4.2 bil-

^urse, have their

paqe

•

ta=^put-"ou fc

opporttmities -

longer-dated
fiscal

Continued from,

Treasury Department

seized"

in this refrigerator which is
in the electric unit.

used

who ^contract

People
homes,

are

lv,w6,.„w,

currently devoting substantial
'

money

this

specify * igad

en or ab all-gas kitchen.

Tri^re

^?sonf

alt

believe

new

an aU-ele^rid WtSi-

install either

research

important

the fact that

new

who bui^d
homes for sale, ana existing
owners who contract
fdj?

remodeling like
6W

ior

builders

install all applibr wji®
a

...

!5£ff 1^ ?1i?er O1?0
other—and there is

very

broadeft:

treasury^biiis":
from

for

^mpler.^e ftt®r^st ?PWared with the effect
i„ o^f»^dynig out the l4t
nimket. For-

below

average

July to \above 2%%

Presumably,

these

yields

lightened. This gives encourageto the idea that there «■ would

would

aSemDt to"

be a ^onsiderable buying interest
tbrmJ ^ government bonds at a 4% inis
terest rate level. Four per cent i

s^rt
outside the hanks
"The Whni.oi

cito/toc^

int0 new high ground beyond the

peaks of World War II and is
October. \ fptously, business credit demands*frightening many potential buyers

rise much further if the
Treasury
were

the"rate- the Treasury offered

into inflation hedges.
more

Ironically,

bonds could be sold if def-

even

give
report.

on v. v"The real attack must be upon
-The

.l h e

will help in
but it must

ress

of; cashpit will be impossible to find out

enter

the.

undepiable

active

without trying.

Treasury,,

proceeds. -The

meanwhile; still^has
an

out

then

when.

the

spends

holder

^y.:y "..'.'Jr.--. vliquid-asset,^Continued from

claim

upon

the

———.

: -

—'I. ,fv

—~

■

—
Bond

•

;

stah'e

and

October

latter
calori-

our

1st in

the

:sUch:a>aior

¥ iRt_

conversion o£ port of its plans

in the United

even

siv

* ^
The

(1)

facturer

to think that

box

it will duolicate
duplicate
of an electric

conditions

refrigerator.

Even

selfish

interest

appliance

devote

mahur

ef-

strenuous

them is to sunnort. right
them is to support, rtefct
the board, those who, mftfcte
the efforts. I am fully congizant

courage
courage
across

of the fact that, at
another,
you
can

time or

one

purchase

ury
J

size

the

real sense, the U. S. Tr'easmust compete with private

very

niffirulties

absolute

the institutional field,

You will be interested in several

techniques which i we have
developed promise to simplify the

---—asssaarssiafi
United States than
a

assured-income.>

every

New

'.^1

; ;

#cUlt iil ^he
Canada.

floating

courage

rooms

^iven items cheaper froin a source
facts. This new system weighs 90 other than your regular one, bw
pounds less than its predecessor. 1 urge you to make the bulk $|

debt maturities is much

of the gas utility business to ten-

-—-

debt
finance are \veU recognized,. The i
best place for permanent debt is
at long terirr with investors who
"ant

The

the untutored eye can see that it
is a simpler mechanism.

j.r"i:

- y ''yy -. why

Financing
of

test

page

,.'Treasury:meetingy debt-y.^cv^'.^y^

Y "The pitfalls

favorite theme and

most important consideration for
the past several years: Gas
appli-

and

laboratories.

went

compression

• -

maturities, .bat also for the v FedCfal Reserve, in exercising restraint

spending;

the

see

research

the

practical yproblenpis anoty-bhlyr

will

ances
desperately
require
tni
application of enormous quantities
of engineering talent and money,

r?,

the

Conclusion
In conclusion, I should like to
reiterate the thesis which has beeft

gas system in an 11 foot
box compared with the gas system
which we have just built in our

v-■:

k\.

j 1

balance the:budget at the earliest to this 2 foot gain in storage space, forts in these directions. The besf
possible date.'! / ^
'
.^y
Its performance so far encourages way I know about ior you to en-

Treasury .for f uture money. An >,
excessive. i ioating vdPbt creatps-ij > MA!

pictorial prog-

You

t a tb 1^ey to a mo?e
table gas appliance business.

foot box and I call your attention

bought,
tf.and paid, for
circulation
ition

you

presenc

meter

which

w411

looked

have learned to be cautious about

unit

reserv es

between

idea

laboratory
s
n ine re
and the time when we
finally got
it in shape for the
market, that I

modest.

effects upon the suppiy of funds hP^rn in business
available vfor*-' - mortgage
invest-' bolstering revenues,

^^Sh redistributipp outside the-

["?."")« ,b'lc"
research

lcit-financing requirements were prognostications of this sort. But,.both
let

succes^ofTi eastrf 12-year bonds sold ini; October, p government^ expenditures
K3£ ?? ^arl?n! s(! ff
1957, .^without. seriously injurious g^^rnment expenditures

■-pot. blind ;ps to the fact that,

disappointments

!2?,n3J.

we^gprob^gr^to other « ^^t^hefutore £3e£

SMWS^S® ^nces
than one-third as
many wflds. and will refrigerate
18% more space. Its configuration
guch

^at

toereby bui.d 4

greater gas industry

not have

does

a,A

and

one, has fewer

f™™

3f01"" Purchases from those mdng,facturers who are truly investing

F®"n Dow Securities

be set deadlevel to operate. There

(Special to The Financial Chronicle)
•'la-rv-r

rities

have

been.passed

by tune,;lionJionds

again m.the.postwar period,_bite in terms of the United States
either because the Treasury^ was debt
that ^investors would be

pay the required
it was desired to

rate:

its

the present market

tnan in ine present

tempted to wait for subsequent offers so long as there is any reason

considerably

rates

P'toh its^ratesrco^

wouid_be such a small, t®

and

Unwilling to- meet the market and

nitch

marKeu^

V^fni^J^^fhhi5?of<a

itract trom tne aesiraDiiuy 01 a
detract from the desirability of a
Si
to expect continued;firm money; U.fS. conversion to reduce float2^
(2)
succeeded in
y£tt Canada BU^CCUCU 4I1 its cong debt and other nearby maturid?bVaxud ?Br,5!S
-VSL

because

give priority to

home builders and other long-term
borrowerg;
But the U. S. must

Ues; but they do uuply
hold a place as a periodic bor- current
operating deficit relatively ?.
operation must be
rower in the bond market if the,
as
large as that of the United limited during a period in which
d^bt is to be soundly constructed.
States; this was possible because the Treasury is trying to finance
pthe decent:; background:: for - the: Bank of Canada cooperated Permanently a major defmit wh.le
version despite the existence of a

Iwnd ftoancing has not been auspi-;.fully tocreating
clous.
U. S. bond •- prices -were -• conditions. In

stable market
contrast,-' the Fed-

driven up out of touch with broad;, eral
Reserve Board confines-its
investment interest in June. For
market operations to 'Treasury

-fAllnxirir

fKt»AA'-mnnfKft

TT ^- C

"v--.ti,

loading, and swollen Federal defr

>_v._

sult

ondl mhtin
abd"while

»ra
we

wiil

re-

hova prelimihave nmiimi-

^
are

the

bond

during

market

the

still

uncertain that I

nramffnyn
-

good

companies

their

efforts

and

are

into

should

Central

Bank

and

;

also
this

all

meanwhile

tors

ences

shift

led

many invesr
investment prefer-

each bank to
j

from bonds toward
Mutual fund sales; for ex-

quidity

away

.stocks.

amplef nbver were so large as this
past summer and thi« at the pre-

the

reserves,

same

time have cpntinqed

to add

ta their; savings■»accounts, and life

...

'insurance.protections
yond

$lS billion

year^

for:

^nortgage moneys and absorh hond
"issues,-put out by corporations,

un„iditv

than

large branch

has

programs

for
*

not

the

•,•

room

and-investment

officials
of

the

municipal borrowers
stayed put of the market, so that
,was no market congestion
or disturbance to hamper the conar?

"ph"'

^?uJd be impossible

United States.

(5)

The

United

•

bben: urging

ministration's
intention

win

the

support

,relatively

small number of institutions and
in order to

assure

solid sup-

the horizon

0ffices

street

business.

402

East

engage in a securities
Officers are B. EP^i*

„

...

Van AlStyne Upens oran^fl
Van Alstyne, Noel & Co.,

meip-

bers o£ the New yorjj. stock Exchange

announce

the

onenina of

change, announce the opeplng of
a

branch office at the Hotel Gov*

Clinton, 317 Seventh Ay#

ernor

„

The refrigerator has been called

„

nue> New York Clty< under
management

Beniamin

"ela/ned ?his ^siticn, Lewfs
eainea inis pumucii, uewis.

-V

-''
.

and

...

success

in its avowed

reduce

our

Federal

refrigerator utilizing gas the rest vestment Women's CJWh pf fmof the appliances will almost auto delphia will hold the secon
matically use gas as their energy Dinner Meeting of the 19^-jj

source. To be conservative, I think season on Nov, 17, 1958 at
.
we can say that if a customer buys Barclay," at 6:15 p.n).
a
refrigerator, the chances of
John Williams Streeter, Director
ber selecting other gas appli- at the Franklin Institute, Secr#,

a^9es aro

enormously improved, tary of the History and Philosophy

|n making the budget for' This would be especially true with
1959-60. That ^
• battle will begin in a glamorous, modern new line of
•"
-

capital

Canada has no capital

are

then fixed income at tomorrow's
rates will look attractive. Whether
this renewed popularity of fixed
income will develop within the
nex^ year depends upon the Ad-

gains tax would complicate exchanges by investors, at least as to
•

Dealers, Inc. has been formed

with

wTS( Mort knowledgeable : merchan- Pll|U. I»V. Women t© HeM1
^nortvsell a PHILADELPHIA, Pa.-The fe.
toAnrelentTather ito- dtaers feel that when they ^

January.

States

which

^fe^^^toan'HZ Sen
cnen,.

havc seen since the war; '

Sntog ft^S i^tioT

inrecent- gains tax.;
the need to,V: (6) In terms of broad policy, the
at long Canadian Government needed to
public

investment funds, which, in my

eager for the emergence of this
and other improved products

the^^ slightly Jugherc ieveis^^ than we

(4): Uunng .the Canadian c^n-

insurance com--banks
particular^ life

hv^

systems of

debt

term^- In; successive

vspeeches tfcey^ have

rennired

■

"Treasury

fa^he UnitS 3tsdSr'VerJ' •

of savings institutions
U, S. securities.
j ^tin?ing-

:week& have stressed

place,

much

been

loan

that

eommereial

banking

^bev will1 h'e eor^ehn^for
Sh,
fn mi

hank parhcipation in debt ex-

.?(

i^^e^aliWes,^foreign yer^

bobrovverSj and Federal agencies,
within

means

Snkta,"^

enough.^v,m a

•There

the

they elect to toclud« longer"

own

rate be-;9n'iac&-ording to my observabut this1?11^.' PracUcally all private, Pro~

rmoney has scarcely been
to fill the: wants of builders

stat^

which

acgreeate

more^buyCTS^^ Us bondk^,™-- Y

maintain ifs

an(j

Gov-

psydtol^-^S1,^^stote4aK;,f

strongly to inflationary

Chronicle)

The point I wish to make with Secretary and 'treasurer.
is this: While the manufac-

ogy,

(Special to The Financial

STUART, Fla.—Florida Brokers

you

0f marketable Federal debt (out-

as side the

Fla. Brokers & Dealers

j_ J0^ng *0 ^evei0p a

1Irpr

about the work
anv

unexpectedly /■ heavy^ ernriient ^undsT•
wbstantTallv
claims- upon the ganital rqarket .iaraer in th'e United StaW than
from home builders, industry, and in
r
/about
50%
aeainst
v

I.. B. Evans, Preairient
L. R. Rvans.' President,

are
are

them for fear of being

use

When I look into my crystal turers are making their investball» t see continued pressure on ment m an attempt to create this
the bond market' resulting from product which the ™arkc£ can
^Canada
tbe fact tbat tbe Treasury mus{ use, you must make your mvestState and-local governments. Tne
25%
in
Canada)
Furtheiinore
fund a large part of the budg5
to
w
$12 pillion deficit, 'contributing^deficit toto the debt straetiire end, to keep the market alert and

R^erve as easy ^ money policy,
s
i 1

..-w e

cers
cers

misleading.

endeavor,

next \2 months.

gage to a securities business. Offi-

estimates of these savings, and G. M. Evans, Secretary-Treas-s

nary
they

will not

putting

^w^a

(3) Commercial bank ownership

^"^^^hdrawal of the Federal

vious'y ««at economies

Other

Bo^d Market Outlook

;

^ 90% surs that this can be mc., has been formed with offleM
developed and produced in a mass at g15 jjor«, na>e Mabrv to en>
way.
If so, 0b- ^ y/^
^ Ya?

security markets,

•

TAMPA, Fla.—Dow Securities,

manufacturing

expectations,of mflation rule the successtui a smart, salable box.
gas remgeraaon sys
tern and

fllA

amiixy in ine norae. v^ur engineers

•

INOW Cnristensen

age

L.O.

item.

Its value or its real

profitability

GLENDALE, Calif.—The investment
business
of
Ansgar
M.

must

measured

Company

curities.

Investment
.

Mr. Streeter's topic will be "Current
Plans
for
Exploring the

not only by its own individual Moon,'* including a discussion pf
contribution to load, bqt alsp by .the role of women in space flight
the leverage it supplies for the With the current trend upward tl|e
sale of the other gas appliances, exploring of outer space, etc.. Mr.

Christensen, Jr., 1417 A Kenneth
Road,
is now being
conducted
under the firm name of Christen-• This leverage is especially effeesen

of Bci^ice Section of the Aiilei|can Association for the AdvancfScience, will be- guest

appliances.
Therefore, the ment of
refrigerator is what I call a lever- speaker.gas

Se- 'tive in selling to the new home

st«geterV tODic''fleems^auite aS-

and kitchen remodeling markets, propriate at the time.

The Commercial and Financial Chronicle

(2016)

...

Thursday, November 13,1958

if INDICATES

Securities

Now

Acme United Life Insurance Co., Atlanta, Ga.

«7une 30 filed 315,000 shares of common stock

being offered,for subscription by
at the rate of three

(par $1)
stockholders

common

shares for each two shares held

new

of record June 30, 1958;

rights expire on Nov. 17. Price
—$6.25 per share to shareholders, and $7.50 for any un¬
subscribed shares.
Proceeds—For working capital and

general corporate

Underwriter—None.

purposes.

(par $1),

pf which 5,000 shares are to be offered for sale to com¬

employees.

Price—To be supplied by amendment.
Proceeds—For general corporate purposes. Underwriter
pany

Registration

•

years as follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec); for general prospecting costs;
and for general administration expenses. Office—Mont¬
real, Canada.
Underwriters—Nicholas Modinos & Co.
^Washington, D. C.) in the United States and by Forget
•«fc Forget in Canada.

Dempsey-Tegeler & Co., St. Louis, Mo.

•

filed

1968.

;

equipment for
manufacture of new products recently developed, and the
balance for working capital. Underwriter—Carl M.
Loeb,
Rhoades & Co., New York.

trusions.

Office—433

Highland Ave., N. E., Atlanta, Ga.

American

Enterprise Fund, Inc., New York
Oct. 30 filed 487,897 shares of common stock. Price—At
market.

investment.

Proceeds—For

Distributor—Ed-

Ward A. Viner & Co., Inc., New York.
•

American International

Oct.

cents).

filed

770,000

Price—$3

per

stock

(par ,10
Proceeds—To acquire and

share.

common

jmanage bowling alleys. Underwriter—Netherlands
curities Co., Inc., New York.
*

Se¬

Nov.

filed

(by

amendment)

holders of record Nov.
share
will

for

four

each

offered

1, 1958

current

additional 2,500,000
Price—At market. Pro¬

ceeds—For investment.

claims

after
To

Cedco Electronics, Inc., Erie, Pa.

share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may

Oct. 16

Mevelop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington;
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.

For

|>er

(letter of notification) 99,900 shares of common
10 cents). Price—$3 per share. Proeeeds—
general corporate purposes.
Underwriter—Herbert
Perry & Co., 70 Wall St., New York, N. Y.

stock

(par

Nov. 7 filed
imon

undetermined number of shares of com-

stock, to be issued pursuant to company's Employee

Thrift Plan.

The amount

will

determined

by employee and employer contributions under the plan.
Arvida Corp., Miami, Fla. (11/24-26)
Oct. 28 filed 2,500,000 shares of class A

common

stock

(par $1). Price—To be supplied by amendment (expected
to be approximately $11 per
share). Proceeds—Together
with other
funds, will be used for development of the
company's properties and for working capital. Under¬
writers—Carl M. Loeb, Rhoades & Co. and Dominick &
Dorainick, both of New York.
Automation Instruments, Inc.
Oct. 7 (letter of notification)
$250,000 of 6% 15-year
convertible sinking fund debentures to be offered for

subscription by stockholders of record Oct. 1, 1958. Un¬
subscribed shares to public. Price—90% of face amount
«(in denominations of $100, $500 and $1,000 each). Pro¬
ceeds—To retire notes payable to bank and others and
dor working capital.
Office—401 E. Green Street, Pasa¬
dena, Calif. Underwriter—None.
Autosurance Co. of America

Oct. 16 filed 250,000 shares of

common stock (par
$2.50).
"Price—$5 per share. Proceeds—To increase capital and
surplus. Office—Atlanta, Ga. Underwriter—None.

Bankers Management Corp.
Feb. 10 filed 400,000 shares of common

(par

cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. OfficeHouston Texas.
Underwriter—McDonald, Kaiser & Co.,
Inc. (formerly McDonald. Holman &
Co., Inc.),. New
York.

Oct. 29

filed

stock.
Price—
Related to the market price on the Canadian Stock Ex¬
common

change, at the time the offering is made. Proceeds—To
-be applied over the balance of 1958 and the next three

Office—Cheney Building, 139 North Virginia St.,
Reno, Nev. Underwriter—None.
★

Central Electric & Gas Co.

(11/20)
$2,000,000 of convertible subordinated deben¬
tures due 1973 and 20,000 shares of cumulative
preferred
stock ($50 stated value
per share). Price!—For preferred^
stock, $50 per share; and for debentures, to be supplied
by amendment.
Proceeds—To repay bank
loans, for
Oct. 28 filed

investments and for construction program.

Underwriters

—Paine, Webber, Jackson & .Curtis and Stone & Webster
Securities Corp., both of New York.

★ Central Illinois Electric & Gas Co.
Nov. 4 filed 42,500 shares of common
stock, to be offered
to eligible
employees of the company pursuant to the
company's Stock Purchase Plan.

Charles Town Racing Association, Inc.
Sept. 9 filed 4,000,000 shares of common stock

(par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell such shares at the market. Price—60
cents per share.

plant

and

Proceeds— For construction of
racing
of equipment.
Office—Charles-

Underwriter—None.

Statement

Nov. 7 filed 133,112 shares of
to be offered for subscription

common

new

stock

(par

$1.25)

by holders of outstanding
"one

stock of record Nov. 26, 1958 at the rate of
share for each seven shares then held.

common

Price—To

sories leased from Check Taxi Co. Inc.

and for working
Business—Manufactures and sells Checker taxUnderwriter—None.

capital.
icabs.

Chemirad Corp., East
Brunswick, N. J.
Sept. 25 filed 165,830 shares of common stock (par 10
cents) being offered for subscription by holders of com¬

Chemicals

who

own more

than $20 billion in stocks. You

can

best interest

these investors in your securities with

Tribune. The Tribune is the
Mid America. It is
tives. For

most

advertising in the Chicago
w
idely read newspaper in

preferred by business and financial

details, talk

to your

execu¬

Tribune representative today.

mon

THE

WORLD'S

Mid America's

mo3i

GREATEST

stock of

the

rate

Cary Chemicals Inc. of

one

common

record Oct. 31, 1958
share for every four shares of
Cary
stock held: (with an

privilege); rights to expire

oversubscription
Nov. 25, 1958. Price—$2

share.
Proceeds—For expansion program. Under¬
writers — Lee Higginson Corp. and P. W.
Brooks & Co.,
Inc., both of New York.
per

Cinemark

VA"--

Consumers

Cooperative Association,
Kansas City, Mo.
29 filed $6,000,000 of 5%%
25-year subordinated
certificates of indebtedness, and 60,000 shares of 5%%
preferred stock (cumulative to extent earned before
patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds
v

Oct.

—For

ness,
ness

ties; and the acquisition

Consumers

Price—$1 per share. Proceeds—
working capital. Office
937 Acequia Madre Rd.
Fe, N. M. Underwriter—Watson & Co., Santa Fe
—

Santa
N. M.

Clute Corp.

Aug. 21 (letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—To

stock (par one cent).

Power

manufacturing plants and
opportunities therefore

Co.

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
short-term bank loans and for expansion and im¬

pay

provement of service facilities.

Stanley & Co., New York.
initely.
ic Crouse-Hinds Co.

Underwriter

—

Morgan

Offering—Postponed indef¬

(12/2)

Nov. 7 filed 219,408 shares of common stock.
be supplied by amendment. Proceeds—To

Price—To

selling stock¬

holders.

Business—Producer

electrical

conduit

tings. Office—Wolf and Seventh Sts., Syracuse,
Underwriter—Hornblower & Weeks, New York.

fit¬

N. Y.

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10
cents). Price—$2 per share. Pro¬
ceeds

For repayment of loan; purchase of
plant and
equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
1740 Broadway,
Denver, Colo. Underwriter—L. A. Huey,
Denver, Colo.
,
—

office

Cuban-Venezuelan Oil Voting Trusts,

Havana, Cuba
March 31 filed 767,838 units of
voting trust
each certificate

Cuban
ment.

certificates,

representing the ownership of one share
(par one-half cent) in each of 24
companies. Price — To be supplied by amend¬

common

stock

Proceeds—For capital

expenditures, exploration

costs and other corporate purposes.

Dorson Mines Ltd.
June 5 filed 350,000 shares of

Underwriter—None.

stock. Price—$1
per share. Proceeds—For new
equipment, repayment of
loan, acquisition of properties under option, and other
common

corporate purposes. Office—Toronto,
oorium, Pa. Underwriter—None.

if Desilu Productions, Inc.
Nov.

10 filed

525,000 shares of

250,000 shares

are

Canada, and Em-

(12/2)
common

stock, of which

offered for the account

of the

company and
275,000 shares for selling stockholders.
Price—To be supplied by amendment. Proceeds—or
pur¬
chase of studios, etc.
Business—A producer of filmed
television series.
Office—780 North Gower

St., Holly¬

wood, Calif.
Nov.

common

NEWSPAPER

widely circulated market table pages

Corp., Chicago, III.

filed

Underwriter—Bache & Co., New York.

ic Dixon Chemical Industries, Inc.

Productions, Inc.

June 30 (letter of
notification) 300,000 shares of
stock (par 10 cents).
For

dljiragfl fttxlnme

111,489 shares of common stock (par
$1.33%). Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriters—Kuhn, Loeb &
Co., New York, and A. C. Allyn & Co., Inc;, Chicago, 111.

effective

★ Checker Motors Corp., Kalamazoo, Mich.
(11/27)

1,400,000 investors

Foods

di/17-20)

acquisition

town, W. Va.

are

Consolidated

Oct.

crude oil properties if favorable
arise. Underwriter—None.

OPEX MARKET FOR SECURITIES!
Chicago and Mid America there

refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.

ness.

★ Celebrity Enterprises, Inc.
(letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For in¬
ventory purchases, etc. and for general importing busi¬

supplied by amendment. Proceeds—For exercise by
company of its option to purchase 19 presses and acces¬

Mining Corp. Ltd.

800,000

Proceeds—To reduce

Nov. 4

Beliechasse

•

Oct. 23.
stock

share.

(11/17-21)'
(par 10

stock

common

retirement of maturing certificates of indebted¬
redemptions on request of certificates of indebted¬
prior to maturity and of 5%% preferred stock; the
possible improvement and expansion of present facili¬

—

if American Snuff Co., Memphis, Tenn.

per

construct

payment of all
share for each $4

Bridgehampton, L. I., N. Y. Underwriter—None.

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20

offered in units as follows: $l,00u of bonds and 48 shares
of stock and $100 of debentures ~"d nine shares of
stock.
Price—To be supplied by amen^nent. Proeeeds — To

discharged; rights to expire about two weeks
Price—$4 per share. Proceeds—
creditors.
Address — P. O. Box-506,

Corp., Sanford, Me.

346,492

Price—75 cents

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 <*t common stock to

new

current

filed

Commerce Oil Refining Corp.

mailing of offer.

pay

interest.

Dec.

one

accrued

York.

common

one

and

loans, make certain capital improvements and for work¬
ing capital. Underwriter—Mallory Securities, Inc., New

York.

unsubscribed

creditors

part of claims, at the rate of

by stock¬

the basis of

held;

if American Mutual Fund Inc.
shares of capital stock (par $1).

to be offered for subscription

Price —100%

Colonial Aircraft
Oct.

cents).

stock (par 10 cents) and two common stock
warrants, one warrant to expire 18 months
from the date thereof, exercisable at $3.25 per
share, and
one warrant to
expire 30 months from the date thereof,
exercisable at $3.50 per share. Price—$3 per unit. Pro¬
ceeds—For working capital. Underwriter—Charles Plohn
& Co., New York.

(par $1)

shares.

Lester, Ryons & Co., Los Angeles, Calif.

common

stock

60,000

retire short-term borrowings; for antici¬
pated increases in inventory; and for additions to work¬
ing capital for general corporate purposes. Underwriters
—Wilson, Johnson & Higgins, San Francisco, Calif, and

purchase

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification) 15,000 shares of

(11/21)

Bowling Corp.

Colo.

Coleman

Underwriters—The Johnson, Lane, Space Corp., Atlanta
and Savannah, Ga.; W. E. Hutton & Co., New York; and
J. H. Hilsman & Co., Inc., Atlanta, Ga.

Aurora, Colo. Underwriter

Proceeds—To

$1,250,000

Price—To

ISSUE

Engineering Co., Inc. (11/17-21)
Oct. 27 filed $1,000-000 of 6%
sinking fund debentures
due 1973 (with stock purchase warrants
attached). A,
warrant to purchase 30 common shares will be
attached
to each $500 principal amount of
debentures, or a total

(12/8-9)
if Bowl American Corp., Arlington, Va.
of 6% convertible debentures
Nov. 10 filed 300,000 shares of common stock (par 10
supplied by amendment. Pro- i:
cents). Price—$2 per share; Proceeds—For acquisition
ceeds—$156,500 to retire outstanding notes; $145,500 to
of land, building improvements and working
capital. Un¬
retire the presently outstanding 6% cumulative pre¬
derwriter—Auchincloss, Parker & Redpath, Washington,
ferred stock; for construction of plant, and acquisi¬
D. C.
tion of equipment and relocation of facilities; and for
★
Bowling Corp. of America (11/17)
working capital
Business—A manufacturer of alum¬
inum entrances and store fronts from aluminum ex¬
Sept. 11 filed 450,000 units, each consisting of one share
due

REVISED

Harlan Lowell, 2200 Kenton,

•^American Art Metals Co.

Nov.

ITEMS

—Lowell. Murphy & Co., Inc., Denver,

For inventory and operating

—

pay additional costs of construction; and for retirement
of obligations and working capital. Office — c/o John

Nov. 12 filed $1,000,000 of convertible subordinate deben¬
tures due 1973.
Price—To be supplied by amendment.
Proceeds

ADDITIONS

SINCE

if Belock Instrument Corp., College Point, N. Y.

^Ambassador Oil Corp., Fort Worth, Texas
Mov. 12 filed 705,000 shares of common stock

(11/24-12/5).

filed $5,900,000

of 6% subordinated debentures,
1978, and 236,000 shares of common stock
(par $1) to be offered in 59,000 units, each consisting of
$100 principal amount of debentures and four shares of
due

Dec.

stock.
Price—To be supplied by amendment.
Proceeds—For capital expenditures and other
corporate
common

Office—1260 Broad St., Bloomfield, N. J. Un¬
derwriter—Harriman Ripley & Co., Inc., New York.
Offering—Expected week of Nov. 24 or Dec. 1.
purposes.

Number 5794

yolume 188

expense

it Dutch West India Co., Ltd.

tion.

Nov. 3 (letter of notification) 222,220 shares of common

during the development period of the corpora¬

common Stock (par $1).
portion of the 111,910 shares pre¬
viously issued or set aside for issue in connection with
recent acquisitions.
Price—To be supplied by amend¬
ment.
Proceeds—To selling stockholders. Underwriter

filed

These

Dynamic Electronics-New York, Inc.

70,000 shares of

—None.

are

.7//

Oct. 31

(letter of notification) 99,000 shares of common
stock (par 50 cents). Price—$3 per share. Proceeds—
For equipping and putting in operation the new plant
and for general corporate purposes.
Office — 73-39
Woodhaven Blvd., Glendale, L. I., N. Y. Underwriter—
Elliott & Co., New York, N. Y.'•['
7777
Electronic

Communications,

Inc.

Oct.

delphia, Pa. 77/;

stock.

Price—

PXx::, ■

■

Underwriter—None.

operating

cover

;_vx:----rxxXpxp-

if Florida Highlands Develpment Corp.
Oct. 30 (letter of notification) 14,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For de¬
velopment, improvement and sale of a 135-acfe tract of
land recently purchased by the corporation in Volusia
County, Fla. Office—312 W. Palmetto Ave., Deland, Fla.

Ethodont Laboratories, Berkeley, Calif.
.

$100, $500 and-$1,000. Proceeds — For
a five-story
motor hotel. Office—1400
Philadelphia National Bank Bldg., Philadelphia, Pa.
Underwriter—R. P. and R. A. Miller & Co., Inc., Phila¬

St. Petersburg, Fla. Underwriter—Laird & Co., Corp.,
New York.
Offering—Expected today (Nov. 13).

Proceeds—To

$294,000 of 10-year 6%
Price—At par (in de¬

construction

($5 per share).

Corp.
(letter of notification)

nominations

100,000 shares of common stock (par $1).
supplied by amendment.,. Proceeds—For
working capital and general corporate purposes. Office—

At par

Motel

convertible debentures due 1968.

■

Feb. 20 filed 300,000 shares of common

7<''

•

NEW ISSUE CALENDAR
November

(Thursday)

Norfolk & Western Ry
(Bids

November

Great American
?

Equip. Trust Ctfs.
14

(Louis L." Rogers Co.

$1,045,000*7o ' ':7

writers—Paine, Webber, Jackson & Curtis and Eastman
Dillon, Union. Securities & Co., both of New York."
General Aero & Electronics Corp. ;:
7;"/'7' .V;
Sept. 29 filed 500,000 shares of common stock (par 16
cents), of which 100,000 shares are to be sold for the
account of selling stockholders.
Price—$2.25 per share.
Proceeds—For acquisition of stock of National Missile &
Electronics Corp., additional working capital and other
corporate purposes. Underwriter—Willis E. Burnside &
Co., Inc., New York.

York
1957 filed 426,988 shares of common A stock (no
par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United Statea.
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp. ; (jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgtn & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) op
May 13 at Room 654, 101 Indiana Ave., N.
Washing¬
ton 25, D. C., but bidding has been postponed.
^77::7';'

Preferred
Eastman Dillon,

& Curtis and

300,000 shares

Pacific Telephone & Telegraph Co........Common
'(Offering to stockholders—not underwritten)
~
r<. .77 ' ''77
• 7
$159,460,400
*
V 7 /

........

(Monday)

Union Securities & Co.)

77
•

•

J.
.

if General Foods Corp.
77'77 7 .!:
Nov. 5 filed 526,162 shares of common stock, to be ofr
fered to salaried officers and other key employees of the

•

Bowling Corp. of .America—
Plohn

-(Charles

•//

$1,350,000

Co.)

Coleman Engineering Co.,. Inc.

Common

United

—Common

States Freight Co

(Offering to stockholders—to be underwritten by Merrill
Lynch, Pierce.v Fenner fy Smith) 150,000 shares

Debentures

$1,000,000

Colonial Aircraft Corp.___

Common

Consolidated

and its subsidiaries pursuant to Executive Stock
Option Plans. - 7 7-; -; '7
; * ■ yL7 - ""7/ *X^7'\7 ;77

Foods

Corp;!—;

Common

(Kuhn, Loeb & Co.' and A. C. Allyn & Co., Inc.) 111,489 shafes.

■

Desilu

•777.

"Development (World Bank)

(W.

Preferred & Warrants

Tegtmeyer

(Bids

G-L Electronics
7/

•

(Woodcock,

Butcher

and

Inc.;

;

•

(Offering to stockholders—-underwritten by Stone & Webster
Securities Corp.)
2,478,264 shares

Heli-Coil Corp.
,

;

7 :

T. I. M. E., Inc
'77.
' (Blyth & Co., Inc.) 260,000 shares

(W. C. Langley & Co.) $1,300,000

Heli-Coil

Corp.
(W.

Langley &

Co.)

180,000

(Hemphill,

Common

__________

Common

Hilliard

Union of South
;

Martin Co,

Debentures

____

Steams

(Bear,

Pacific Telephone & Telegraph Co
(Bids

11:30

State Loan & Finance Corp.__
(Johnston,
..

Lemon & Co. and
Securities & Co.)

•

'•?'

Dillon,

Union

First National Bank of Jersey City

7r.

(N, J.)__Com. \

to stockholders—may be underwritten byi.'7
Van Alstyne, Noel & Co.) $935,000
■
; 77

,»

Electric

(Paine,

Oil

Philadelphia Electric

New Zealand

American International
(Netherlands

Inc.)

Co.,

November 24

Rhoades

Dixon Chemical

Co.

and

World Wide Helicopters Ltd
(Blair & Co., Incorporated)

Natural
(Blyth

Gas
& Co.,

basis

Bonds

Office

to be

invited)

1958; rights to expire Dec. 31.
Proceeds—To selling stockholder.
Wilmington, Del. * Under¬

Nov. 17,

Street,

187,534 shares of common stock (par $5)
exchange for outstanding common stock
of Sunrise Supermarkets Corp. at the rate of one share
of Grand Union stock for each 2.409 shares of Sunrise

Common

Michigan

Bell

Telephone

Power

(Bids

to be invited)

(Kuhn, Loeb & Co
Panama

$30,000,000

Common
Loeb & Co.)

173,616 shares

Bonds

(Republic of)
(Lehman

Brothers)

Bonds

Pennsylvania Power Co
(Bids

to be invited)

Debentures

(Offering to stockholders—underwritten by Blyth "& Co., Inc.
and
Corp.) 110,000 shares

Utah Power & Light Co
(Bids

to be invited) $20,000,000

by at

least

31.

25, 1958 at the rate of one new share for

Subscription period will be ap¬

None.

Great American

Aug.

400,000
shares.

Bonds

acceptance

cents).

$8,000,000

Southwestern Bell Telephone Co

proximately three weeks after date of issuance of rights,
or Dec. 16. Price—-To be supplied by amendment.
Pro¬
ceeds—For general corporate purposes.
Underwriter—
•

$16,700,000

Nov.

each four shares held.

and Lehman Brothers) $24,000,000

(Bids to be Invited) $110,000,000

Gas, Electric Light & Power Co.__Common

record
f

Bonds

Moore-McCormack Lines, Inc.

Debentures

(Bids to be invited) $20,000,000

Ctfs.

subject

Gray Manufacturing Co., Hartford, Conn. (11/25)
28 filed 90,218 shares of capital stock (par $5) to
be offered for subscription by common stockholders of

$40,000,000

Bonds

Oct.

$17,000,000

offer

•

Bonds

(Bids to be invited)

The

80% of the outstanding Sunrise shares by Dec.

Co.) $15,000,000

Gulf States Utilities Co

Montana

Corp.

filed

stock.

Preferred

Power Co
(Morgan Stanley &

(Wednesday)

The First Boston

Market

927

Grand Union Co.
Oct.

Postponed Financing
Consumers

(Offering to stockholders—underwritten by Kuhn,

Tucson

held

—

to be offered in

(Tuesday)

Inc.)

one

writer—None.

$5,850,000

•

Dominick &

common

(Thursday)

Common

(Bids noon CST) $1,875,000

Polaroid

December

(Bids

Chicago & North Western Ry.___Equip. Trust
November 26

98,750 shares of Grain Elevator stock on the
warrant to purchase one-eighth share of
Grain Elevator stock for each share of National Alfalfa

(Tuesday)

Price—$2 per share.

100,000 outstanding shares of common stock

offer

be invited) $12,500,000

$2,310,000

212,153

Grain Elevator Warehouse Co.

(Harriman Ripley & Co., Inc.) $5,900,000 of debentures
and 236,000 shares of stock

(par 10 cents). National Alfalfa Dehydrating & Milling
Co., holder of the 100,000 common shares, proposes to
to its stockholders preferential warrants to sub¬

Bonds

Light Co

(Bids

Industries, Inc.__Debs. & Common

November

Norfolk & Western Ry.___——Equip. Trust Ctfs.

Doininick) $27,500,000

Northern

Power

—Class A Common
Loeb,

•

$70,000,000

(Monday)

Arvida Corp.
M.

Texas

'777*

scribe

(Friday)

Bowling Corp

Securities

Telegraph Co—Debens.

(Bids noon EST) $50,000,000

$10,000,000

Peabody & Co.)

November

—_Bonds

(Government of)__—

(Kidder,

(Carl

$2,000,000

'[X -7.-7' :

capital; expan¬
operations and other purposes. Underwriters—>
Woodcock, Hess, Moyer & Co., Inc., Stroud & Co., Inc.;
and Butcher & Sherrerd, all of Philadelphia, Pa., and
four other firms.
V
7\'7,7 -:.77'":;7sion

(Tuesday)

December 16

,7,7 7,

short-term bank loans; and for working

(Wednesday)

December 10

Common

Gas Corp

(Offering not underwritten)

$1,250,000

515,021

'77.

N. J. (11/18)
stock (par 20
cents). Price—To be supplied by amendment. Proceeds
—To purchase additional equipment and tooling for the
company's magnetic laminations, program; to discharge

Co.—_——Common

Corp.)

G-L Electronics Co., Inc., Camden,
Oct. 24 filed 75,000 shares of common

Nov. 3 filed

Webber, Jackson & Curtis and Stone & Webster
Security Corp.) $1,000,000

Hamilton

Securities

December 9

•7:

Preferred

Gas

Pierce,

Smith, New York.

None.

•

(Paine, Webber, Jackson & Curtis and Stone & Webster
Securities Corp.) $2,000,000

Central

Inc.)

Co.,

Southern Bell Telephone &

..Debentures

Central Electric & Gas Corp

Hilsman

(Bids to be received)

(Thursday)

November 20

-7>i

(Equitable

(Offering
-.

Bonds

(Monday)

National Old Line Insurance

November 19 (Wednesday)

in domestic

Lynch,

Agent—Merrill

American Art Metals Co
Debentures
(The Johnson, Lane, Space Corp., W. E. Hutton & Co. and

Debentures

Eastman

$10,000,000

additional investments

for

Clearing

if Gilmore Industries, Inc.
'7,-^ "''-"V4
4 (letter of notification) 10,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For the purchase of land and working capital. Office—
13015 Woodland Ave., Cleveland, Ohio.
Underwriter—

Co. Inc.) $25,000,000

Read &

December

Debentures

$80,000,000

EST)

a.m.

Fenner &

Africa—Bonds

(Dillon,

$20,000,000

Co.)

31, 1958; rights to expire on Nov. 21. 1958:
per share.
Proceeds—To pay short-term

and

subsidiaries.

$10,000,000

(Bids to be invited)

206,446 shares

Son)

loans

bank

(Wednesday)

Utilities Co.__—____

Montana-Dakota

(Offering to stockholders—underwritten by Blyth & Co., Inc.
and

360,000

Oct.

Nov.

December 3

Kentucky Utilities Co

Co.)

Noyes

Utilities Corp.

maximum 530,000 shares of common stock

Price—$38.50

Common

Grocery Co

Public
a

holders at the rate of

held

Common

Von's

Debentures

_________

(par $5) being offered for subscription by common stock¬
one new share for each 20 shares

Smith) 700,000 shares

Co..———Preferred

Power

Webster Securities Corp. and Paine, Webber,
Jackson & Curtis) $2,500,000

(Stone &

Common

General Public Service Co

Colorado

Southern

Oct. 1 filed

Common

18, 1958

shares held

General

'/.: 7

$50,000,000 :

(May oe Merrill Lynch, Pierce, Fenner &

Common

Co., Inc.; Stroud & Co.,
Sherrerd) 75,000 shares

Moyer

be invited)

Bonds

Public Service Electric & Gas Co.__

Co., Inc._

Hess,

each two

77--

(11/18) I

the basis of one new share for
(with an oversupscription privF- /
lege); rights to expire on Dec. 2. - Price—To be supplied
by amendment. Proceeds—For investment. Underwriter
—Stone & Webster Securities Corp., New York.
7 i-' 7

(Bache & Co.) 525,000 shares

record Nov.

Common

Productions, Inc.

: 7

Public Service Corp.

General

Oct. 29 filed 2,478,264 shares of common stock to be offered
for ' subscription
to
common " stockholders" of

219,408 shares

Hornblower & Weeks)

Pacific Gas & Electric Co.

$2,200,000

Co.)

November 18 (Tuesday)

77'

__Common

First National Bank in Dallas, Texas.
Common
(Onering to stockholders—underwritten by Equitable Securities
Corp, and Merrill Lynch, Pierce, Fenner & Smith) $7,830,000

_Bonds

(The First Boston Corp. and Morgan Stanley & Co. ) $100,000,000

Super Food Services, Inc.

Crouse-Hinds CO._—1__

International Bank for Reconstruction and

(Tuesday)

-December 2

—

.(Mallory Securities, Inc.) $259,869

...

company

(Wilson, Johnson <fc Higgihs and Lester, Ryons & Co.).-

(12/1-5)
300,000 shares of voting preferred stock,

filed

Jan. 14,

General Acceptance Corp.

convertible series. Price—To be supplied by amendment.
Proceeds—For expansion and working capital.
Under¬

Common

(Paine, Webber, Jackson

November 17

^General Acceptance Corp.
Nov.

(Thursday)

December 1

Waltham Precision Instrument Co., Inc.__Common
(Offering -to stockholders—not underwritten) $253,334 .17- <

($1 per share). Proceeds—To erect
activities building, comprising a restau¬
rant, cocktail lounge and coffee shop. Office—3938 Wilshire Blvd., Los Angeles, Calif. Underwriter—Oscar G.
Werner & Co., Pasadena, Calif.

(Offering to stockholders—not underwritten) 133,112 shares

Common

and Joseph Mandell Co.)

Checker Motors Corp.

(Friday)

Realty Corp

Price—At par

General Aniline & Film Corp., New

November

77'.'

EST), $6,690,000

noon

Fremont Valley Inn
; 7.7'77.7 V
Aug. 6 (letter of notification) 300,000 shares of common
stock.

and operate an

Fleetwood

Oct. 24 filed
Price—-To

Fluorspar Corp. of America
notification) 133,333 shares of common,
(par 25 cents). Price—$2.25 per share. Proceeds-rFor mining expenses. Office—4334 S. E. 74th Ave., Port¬
land 6, Ore. Underwriter -— Ross Securities Inc., Ne\Sr
York, N. Y.
Oct. 14 (letter of

Underwriter—None.

Federal Pacific Electric Co.
Oct.

materials, containers, etc., and leasehold improvements.
Office—129 S. State St., Dover, Del. Underwriter—Rose

•

stock

stock (par 10 cents). Price—$1.35 per share. Proceeds—
For retirement of notes,- purchase of equipment, raw

Securities, Inc., New York, N. Y.

(2017)

Chronicle

The Commercial and Financial

Realty Corp., N. Y.

(11/14)

filed 440,000 shares of class A stock (par 10
Of this stock, the company proposes to olfei

shares and certain selling stockholders 40,000
Price—$2.37V2 per share. Proceeds—For workContinued

page

(2018)

The Commercial and Financial Chronicle

Continued

from

•

page

Indiana

& Michigan Electric Co.
26 filed $20,000,000 of first mortgage bonds due
Nov. 1, 1988. Proceeds—To retire bank loans used for
construction program.
Underwriter—To be determined

Thursday, November 13, 1958

Los Angeles Drug Co.

Sept.

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Eastman Dillon, Union Securities & Co.; The

New York, on a best efforts basis.
Gulf States

Utilities

Co.

Aug. 14 filed $17,000,000 of first mortgage bonds, serlet
A, due 1988. Proceeds—Together with cash on hand, tc
redeem and retire $17,000,000 principal amount of 4%fl
first mortgage bonds due 1987. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders.
Halsey, Stuart & Co. Inc.; Lehman Brothers; Merril]
Lynch, Pierce, Fenner & Smith and White, Weld & Co
(jointly); Stone & Webster Securities Corp.; and Salo¬
mon Bros.
& Hutzler and Eastman Dillon, Union Se¬
curities & Co. (jointly). Bids—Had been expected to be
received on Sept. 15, but has been indefinitely post¬
poned.
Hamilton Oil A Gas Corp.

(11/20)
1,000,000 shares of common stock (par 25
cents). Price—$2 per share. Proceeds—To acquire funds
to test drill, explore, and develop oil and gas properties.
Underwriter—None.
[The registration includes an ad¬
Oct. 22 filed

ditional

588,000 common shares issuable upon exercise
of 1,176,000 options rights previously offered (Oct. 19,
1957),
which rights entitle the original purchaser
thereof to purchase one-half share of stock at 50 cents
per share at the expiration of 13 months after com¬
mencement of such
• iffanna

Of the total, 181,606 shares are to

be offered to shareholders of the parent at the rate of
one share for each 16 shares of the parent's stock held
The remaining 131,432 shares are to be offered to the

shareholders

one

of the mining company at the
share for each 3.45 shares held. The offering

is made to shareholders of record Nov. 7; rights to ex¬

pire on Nov. 21.

Price—$68.50

indebtedness.

reduce .bank
ent

Name—Company is
Ore Corp.
Hartford Electric

share.

per

Proceeds—To

Underwriter—None.

known

now

Hanna

Pres¬

Coal

Light Co.

Co., Hartford, Conn.; /Chas. W. Scranton & Co., New
Haven, Xlonn,; and The First Boston Corp., New York.
'

Hawaiian Electric Co., Ltd.
Oct. :£ filed -84,700 shares of common

stock (par $20)
being offered for subscription by holders of its outstand¬
ing common Stock of record Oct. 15, 1958, at the rate
share for

each

then

held; rights

will expire on Nov. 20.
Price—$42.50 per share.'
ceeds—To become part of the general funds of the

will be applied toward the cost of the
pany's construction program. Underwriter—None.
pany and

'Heartland Development Corp.
23 :(letter of notification) 22,820

Oct.

voting convertible
offered
of

for

subscription

;share of

one

preference .stock

10 shares of

common

stock

(par

stockholders

convertible

preference
held

$12)

non¬

the

stock
about

Pro¬
com¬
com¬

for

basis

each

Nov.

1958.

Stockholders will have 45 days in which to exer¬
cise the rights.
Price — At par.
Proceeds — To repay
debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬

writer—None.
•

Heti-Coil

Oct.

Nov.

Corp., Banbury, Conn. (11/18-25)
filed $1,300,000 of convertible
debentures

1, 1973 and 180,000 shares of

common

stock

$1).

Heliogen products, Inc.
Oct. 22 (letter of
notification) 28,800 shares of
stock

(par

payment .of

due

$1).

Price—$5

past

due

per

accounts

share.
and

common

Proceeds—For

loans

and

Co., Suite 1512,

Broadway, New York 4, N. Y.

Office—Tucson

Underwriter—None.

it Home-Stake Production Co., Tulsa, Okla.

Nov.;5 'filed 116,667 shares of common
stock (par $5).
Price—:$6 per share. Proceeds—For
working capital and
general corporate purposes.
Office
2202
Philtower

—

Bldg., Tulsa, Okla. Underwriter—None.
• Honeggers' A Co., Inc.,
Fairbury, III.

Nov.

7 ifiled

19,000 shares of

common

stock, of which

/J.8^000 shares will be sold for the
company, and 1 000
shares for a selling stockholder.
Price—$30.50 per share.

Business—Manufactures

and sells formula feeds for
live¬

stock, animal and poultry, farm animal shelters
and re¬
lated equipment and supplies.
Proceeds
For working
capital and .general corporate
—

purposes, including the fi¬
nancing jDi increased inventory and receivables. Underwfttew^Tabor & .Co., Decatur,

111., Fusz-Schmelzle &
Co., 'Inc., St. Louis, Mo., and Ellis, Holyoke &
Co., Lin¬
coln, Neb.

best efforts basis.
stock

(par it
the market price. Pro-

:ents). Price—To be related to
weds—For

working capital and to enlarge research and
levelopment department. Underwriter — S. D. Fuller *
Co., New York. Offering—Being held in abeyance.
Investment Corp.

of Florida
(letter of notification) 55,555 shares of common
stock (par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in surplus.
Office—At¬
Oct.

lantic Federal Building, 1750 E. Sunrise
Boulevard, Ft.
Lauderdale, Fla. Underwriter—None.

fund debentures.

Price—$10.50 per share to stockholders;
Proceeds—$328,300 to redeem outstand¬

ing 5% sinking fund debentures and $189,200 to reduce
short term bank loans. Office—Los Angeles, Calif. Un¬
derwriter—Quincy Cass Associates, Los Angeles, Calif.

LuHoc

Mining Corp.

Sept. 29 filed 350,000

...

snares

common stock.

(letter of notification) 938 shares of common
(par $1). Price—At the market. Proceeds—To pay

stockholders

sulting from
Office—411

cash

the

for

their

stock

fractional

dividend

interests,
Nov.

re¬

1,> 1958.

19th

Avenue, Portland, Ore. Under¬
Lynch, Pierce, Fenner & Smith, New

writer—Merrill

York, N. Y.

;

•

Kentucky Utilities Co. (11/18)
Nov. 3 filed 206,446 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record Nov. 17, 1958, at the rate of one share for each
12 shares then held; rights to expire on Dec. 8. Price—
To be supplied by amendment. Proceeds—To be used to
finance part of the company's construction expenditures,
including the payment of temporary bank loans incurred
for that purpose. Underwriters—Blyth &
Co., Inc., New
York, and J. J. B. Hilliard & Sons, Louisville, Ky.

Price—$1

share; Proceeds — For the acquisition of properties
under option and for various geological
expenses, test

per

drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pd.
Underwriter—None.
•; .';,
■ <'. ' r .:. ** ».
M. C. A. Credit Co., Inc.,
Oct. 6 filed 100,000 shares of

per

Walter

Corp., Miami, Fla.

Mairs & Power

market.-

shares of

Proceeds—For

National Bank
Nov.

stock.

Price—$5

Fund, Inc., St. Paul, Minn.

6 filed 40,000

Aug.

common

Proceeds—To reduce current indebtedness to
& Co.
Underwriter—Plymouth Bohd

E., Heller

& Share
•

Miami, Fla.

common

investment.:

Bldg., St. Paul,-Minn.

stock:

(
Price—At

Office—1002 First

Statement effective

■

.•

Jantzen, Inc.

Lake Ontario Portland Cement
Oct.

filed

rants

for

the

Co., Ltd.

671,376 shares of common stock and war¬
purchase of an additional 671,376 shares

to be offered to common shareholders at the rate of

unit

(consisting of
each

for

share and

one common

two

amendment.

held.

Proceeds

—

for corporate purposes.
Underwriter—None.

Price—To

For

one

warrant)
supplied by

one

construction

program

and

Office—Picton, Ontario, Canada.

•

-A- Marine Corp., Milwaukee, Wis.
Nov. 10 filed 501,500 shares of common stock
(par $10)
to be offered in exchange for all the issued and
outstand¬
ing shares of capital stock of the following banks at the
indicated ratios of

exchange: (1) two shares for each of
220,000 outstanding shares of Marine National Ex¬
change Bank of Milwaukee, $20 par; (2) * 22- shares, for

the

each of the 1,000
outstanding shares of Cudahy State
Bank, Cudahy, ,Wis., $100 par; (3) three shares for each
of the 7,500 outstanding shares of Holton State
Bank,
Milwaukee, $20 par; and (4) 17 shares for each of the

1,000

outstanding

South

Milwaukee, $100

South

Milwaukee

Bank,

Each of the exchange pro¬
posals is conditioned' (among other things/ upon ex¬
changes being made,with the holders of not less-than
80%

par.

of the stock.of the bank with
respect to which the

proposal is made.
•

'Martin Co.,

Baltimore, Mel. (11/18) "
$20,000,000 of sinking fund debentures,,due
Nov. 1, 1968 (with-common stock purchase warrants).
Proceeds—For working capital and general
corporate
purposes. Price—To be supplied by amendment. Under¬
if McCormick

shares.

Price—$100 per unit.
$175,000 mortgage loan from
Co., will be used to meet ex¬
penditures in acquiring latter company's South San
Francisco foundry and for working capital. Offices—Las
Vegas, Nev., and South San Francisco, Calif. Underwriter
—Sam Watson Co., Inc., Little
Rock, Ark., on a best
efforts basis.
•
' V
common

Proceeds—Together with

the American Brake Shoe

• Libby, McNeill & Libby
(letter of notification) 23,529 * shares of common
stock (par $7) to be offered to
employees under the Em¬
ployee Stock Purchase Plan in blocks of 25 shares or
multiples thereof. Price—At the market,'(on the New
,

York, Midwest

or Pacific Coast Stock Exchanges.)
Pro¬
ceeds—To reimburse the company for stock
purchased on
market.
Office—200 S. Michigan

Ave., Chicago' 4, 111.

Underwriter—None.

'•

Life

Insurance Securities Corp.
March 28 filed 1,000,000 shares of
capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
3f

"young, aggressive and expanding life and other incompanies and related companies and then to
jperate such companies as subsidiaries." Underwriterfirst Maine Corp., Portland, Me.

$922,500 of 53A%

subordinated

convertible

1, 1970, to be offered in exchange
equal principal amounts for the out¬

standing 3% convertible subordinated, income notes due
1967 of the Calidyne Co.,
Inc., a subsidiary. The com¬
pany

will

notes

from

offer

those

notes for

cash, at
cipal amount.

purchase

stockholders
a

market.

Proceeds—For working capital.

Offifee—■

Underwriter—Nolle.

Medical Arts

Building Co.
r
>
Oct. 24 (letter of notification) $290,000 of
limited,part¬
nership, interests. Price—$10,000 or multiples thereof per
interest. Proceeds—For mortgage
payment, reserve,'and
deposit on contract .by general partners. Office — 366
Broadway, NeW York 13/N. Y. Underwrite*—None/
Merchants Petroleum Co.
Oct. 8

(letter of notification) 159,395 shares of common
(par 25 cents) to be offered for subscriptidn by

stock

stockholders of record Oct.
new

for

each

five

15, 1958

the basis of

one

held; Tights to expire

15/1958. Unsubscribed shares may be offered to
one or more persons-selected
by the board of directors.
Price—$1.40 per/share. Proceeds—To reduce bank loan;
to increase working capital and for general corporate
purposes/ Office—^617 W. ;7th Street, Los Angeles, Calif.
Underwriter—None.

face

who

value

desire

Calidyne
sell

their

price equal to 100% of their prin¬

Long Island Casualty Insurance Co.

—

^ Mid-Hudson Oil Co.," Inc.
Oct. 30 (letter of notification) $300,000 of 6% registered
debenture"- bonds,!7due•/■Nov.' 15, 1968 to be .offered in
units of $100 debentures/ Price—At par. 1 Proceeds—For

capital.. Office

—

Prospect

St.,

Poughkeepsie,

Underwriter—None.

if. Middle South Utilities, Inc.
25,000 shares of common stock to be offered
eligible employees of the company and its subsidiaries
pursuant to the corporation's Stock Purchase Plan.-_
Nov. 6 filed

Midwest Electronics; Inc.1

Nov.

stock
year

(letter of notification)

(par 50 cents)

and

30,000 shares of common
$300,000 of 6% series one, 8-

promissory notes to be offered in units of

Jan. 1,

Sept. 29 filed 100,000 shares of capital stock (par $2.50)
be offered for
subscription by holders of the com¬
pany's presently outstanding 55,975 shares.
Price—$6

if Mid-Atlantic Marina, Inc., Baltimore, Md.
Oct. 28llettefl)f notification) 60,000 shares of .7% pre¬
ferred stock (par $3.50). Price—$5 per share. Proceeds—
For construction of a marina.
Office
Room 104', Old
Town Bank Bldg:, Baltimore 2/Md. Underwriter—Marylahd SecuritieSF©.,~Baltimore, Md.- "</
—
*'>7 V

note due not sooner than Jan.
•

(letter.of notification) 1,000 shares of non-voting
stock (no par) and 1,000 shares of common
stock (no par) to be offered to certain
employees. Price

N. Y»

debentures due Dec.

basis

^
.

common

working

Ling Electronics, Inc. "

the

Dec.

Oct. 23

Oct. 28 filed

& Co., Inc.

41£ Fight St:,! Baltimore 2, Md.

Inc.

Aug. 28 filed $500,000 of 6% subordinated callable de¬
bentures due June 30, 1968, and 150,000 shares of common
stock (par 10 cents) to be offered in units of $100 of
debentures and 30

writer—Bear; Stearns & Co., New York.
Oct. 27

—At

.Laughlin Alloy Steel Co.,

Hoagland A Dodge Drilling Co., Inc.
June 12 filed 27,000 shares of
capital stock. Price—$10
per share.
Proceeds—-To be used in part for the ex¬
ploration -of mines and development and
operation of
mines and in payment of indebtedness.
Ariz.

Washington,^ D. C., on

Industro Transistor Corp. (N. Y.)
feb. 28 filed 150,000 shares of common

general

—

Minerals

rarance

working .capital. Office
35-10 Astoria
Blvd., L. I. C.
'3,'N.^Y. ^Underwriter—Albion Securities
11

both of

(par

Price—To be supplied by amendment. Proceeds—
For working capital and other
corporate purposes. Busi¬
ness—^Manufacturer of tools. Underwriter—W. C. Langley &C5o., New York.

Offer¬

Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—To develop and
aperate graphite and mica properties in Alabama. Un¬
derwriters—Dearborn & Co. and Carr-Rigdom & Co*,

stock

(par $25)
being offered for subscription by common stockholders
of record 'Oct. 21, 1958 at the rate of one new share for
each 10 shares held; rights to expire on Nov. 17, 1958.
Priee—$56 per rshare. Proceeds—To repay bank loans
and for .construction .program. Underwriters—Putnam &

one ;new

Ripley & Co, Inc.

basis. Any shares not so sold will be offered on
exchange basis to holders of outstanding 5% sinking

pro rata

June 11 filed

Oct. 9 filed 149,633 shares of common

Corp.; Harriman
indefinite.

Industrial

stock

holders of the latter.

minority

$11.50 to public.

Boston

ing—Date

Oct.

offering.]

Mining Co., Cleveland, Ohio

Oct. 17 filed 313,038 shares of common stock being of¬
fered for subscription by company's shareholders (other
than the M. A. Hanna Co., the parent), and by the stock¬

rate of

First

iiig capital and other corporate purposes. Underwriters
and Joseph Mandell Co., both of

—Louis L. Rogers Co.

Oct. 3 filed 50,000 shares of capital stock, to be offered
for subscription by holders of outstanding stock, on a

$500

1, 1961 and not later than

1966 and 50 shares of stock. Price—$500 per unit.
Ave., Fargo, ND. Underwriter—None.

Office—4000 Main

share. Proceeds—To be added to capital funds. Office
—Garden City, L. I., N. Y. Underwriter—None.
State¬

per

ment effective Nov. 5.
•

Lorillard

Nov.

filed

(P.)

Co., New York

364.670

to be offered for

the rate of one

shares of

new

(11/26)

common

subscription by

stock

common

share for each

(par $10),

stockholders at

eight shares held

Nov.

25; rights to expire on Dec. 9." Price—To be sup¬
plied by amendment. Proceeds—To be added to general
funds of the company and used for
corporate rpurposes,
including reduction of short-term bank loans. Under¬
writers—Lehman
both

New

Brothers

York.

and
-

Smith, Barney
L

&" Co.,

if Montana
Nov. 7 filed

Dkkota -Utilities Ca. (12/3)
$-lO,O0D>OOO of first mortgage bonds due Dec.
.

Proceeds-^-To repay short-term bank loans in
$9,000,000 and for; construction program.
Underwriter—^To be determined by competitive bidding.
Probable bidders: Halsey/Stuart & Co. Inc.; Blyth & Co.,
Inc.; Merrill JLynch'/;Pierce, Fenner & Smith and Kidder,
Peabody &: Co/ (jointly); Blair & Co. " Bids—Expected
1,

1983.

the

amountvo£

to be received-tmMtec: 5:■«••'''•

Montana

Power

Co.

July 1 filed $26iOOO'OGO,of first mortgage bonds due^m
Proceeds^ Together with other funds,.; to be used to
repay

$15;500,tKW /iir - bank loans; and 'to carry oft/ the

company's/construction

program

through lf5&~

Under¬

writer—To "be determined by competitive bidding. Prob-

■

Volume 188

Number 5794

The Commercial and Financial Chronicle

(2019)

O. T. C. .Enterprises Inc.
able bidders: Halsey, $luart & Co. .Inc.; LehmanRros.;
March 6 (letter tw, notification) - 23,200 shares of comMerrilL.L^
Pieree, Fenner &Smithr arid Stone &
mon class B stock?
Webster.Securities Corp. {jointly); White, Weld & Co..
(pai^$l>. ; Price—$5 per sham Pee*
ceeds—FoFr eompletion of plant
EastmanBiRon/Uiuori Securities & Co.; Kidder Pea-;
plans; land; construebody &,0o^ Smittb Barney & CoV and Blyth
Co,, lnc ' don arid Operating expenses/ Office—2502 N. Calvert
St., / Baltimore 18,: Md. I ; Underwriter—Burnett & Co..
.(jointly % Bids-MIad been expected /to. be received up =
to noon (12DT j on Aug. 26 at Room 2083; Two Ribctpr St.
;Spaj4tSi';Md/'''M,
r'
Ne\v York, N/ Y/ but oompariy" onAUg/22 ri^ain .'decided
Pacific Gas & Electric'Co.'■ (12/2)
to defer sale
pending improvement in market iporiditions 4 Nov.'7 filed $50,000,000 of first and
refunding mortgage
Montana PowerCb*.---v• ./• :•*/.'//*
bonds, - series DD, due June 1,; 1990. Proceeds—For cost
pf utility prpperty additions. Underwriter—To be deterJhly r-h filed'; 100,000. shares
par ^5
mined by- competitive biddirigi Probable bidders:
The stockwillbe offered oiiJy to bona fide resident.^
Halsey,
of Montana.
Stuart & Co. Inc. arid The First Boston Corp. (jointly);
Prfce-^To be related to the current market
price on the,New York Stock. Exchange. Proceeds-—To¬
Blyth ,8c Co., Inc. Bids—Expected to be received Dec, 2.
gether, witb other funds, to carry on the company's con¬
;
Pacific Petroleums, Ltd.;
/
struction program; through; 1959: - Manager-pealers —
'Smith, Barney &/Co;, -Kidder, Peabody &/Col and Blytb / Oct/29 filed ,521,149 shares of common stock (par $1), of
which 210,257/ shares are to be issued in exchange for
Inez
//;
r"'/.
properties and 286,890 shares and 24,902 shares respec¬
,

M Motioi* Picture investors

Inc. M'

tively, in exchange for stock of Huriiber Oils Ltd. and

Office—Bayard, Fla.
Co., Inc./Miami, Fla.

Underwriter-^Robert

Ferman

it Potomac Electric Power Co.
Nov.

filed

$25,000,000 of first mortgage bonds due

1993.

Proceeds—To repay bank loans and for construe- "
tion program. Underwriter—To be determined by com-*

petitive bidding. Probable bidders: Halsey, Stuart &
Co., Inc.; Harriman Ripley & Co., Inc.; The First Boston
Corp.; Kidder, Peabody 8c Co., Merrill Lynch, Pierce/
Fenner & Smith,. White, Weld & Co. and Salomon Bros.
& Hutzler (jointly); Lehman Brothers and Eastman Dil-'
Ion, Union Securities & Co. (jointly); Dillon,- Reed &
Co., Inc. and Johnston, Lemon & Co. (jointly)^
Prairie Fibreboard Ltd.

Aug. 18 filed 209,993 shares of common stock (par $1.50)
:o be offered for sale to residents of Canada in the Prov¬
inces

Manitoba, Saskatchewa n and Alberta and to
"only in the State of North

residents of the United States

Dakota."

Price

per share.
Proceeds — For con¬
Office—Saskatoon; Saskatchewan,
Ltd., and United
Securities, Ltd., both of Saskatoon, Canada.
—

July; 11 filed 200,000/shares of coirinion-stock- (par $1) /•
Price—$18.75 per sharp*. Proceeds—For Investment. Offibe—1O0OPower; & Light Bldg., Kansas City, Mo. Un¬

Catalina Oils Jutd.r The offer to Humfoer Oils Ltd. stock¬

struction

holders will be on the basis of one share of Pacific
mon for each nine
outstanding shares of Humber

Canada. Underwriter—Allied Securities

derwriter—None.:''

mon;

.■•• •

/;•

Narda Ultrasonics Corp., Westbury,
Nov. 4 filed5 60,000 shares of common -

cents). Price
—•To

Narda

the basis of four shares of Pacific

L. \.f N. Y,

stocky (par

shares of

10,/

Michael G~Kletz &

The

exchange offer with

re¬

the Humber stock is subject to the condition
acquire at least 80% of the 2,582,015 out¬
standing shares of Humber stock; and the proposal with
respect to Catalina is subject to the condition that

Co.,

Pacific acquire at least 90% of the 186,016
shares of Catalina stock (after exercise of

underwriters/V//v/./.M/

options for' 90,000 shares of the

National Beryl & Mining Corp., EstesPark, Colo.

com*

for each 31

that Pacific

Inc. and
Co., both of New York, and..six other
Blauner

Catalina stock.

common

spect, to

To be supplied by amendrhCnt. Proceeds
Microwave Corp., the selling stockholder.

Underwriters—-Milton

com¬

and the offer to Catalina Oils Ltd. shareholders

the projected plan

development and operation

^ National Old Linelnsurance-Co.(12/8»18)
filed 515,021 outstanding shares of class

Nov.M0

BB
supplied by amendment.
Proceeds—To selling stotiChbiders./ Office—Capital Ave.
common-

stock.

Price—To

rind Wood Lane, Little Rock,' Arjk.. Undenvriter^Equitrible Securities Corp., Nashville, Tend.
Offering—Ex¬
pected the second-or third week ot December. •'
"

—

Nay lor. Engineering & Research Corp..
J t. 29/ (letter of.notification). 300,000..-shares o| cumu¬
lative voting and non-assessable common stock. Price—
At pat ($1"per share)., Proceeds—-For; organizational ex-(.
pensey ai^, first three months' operationai: expenses. Of-

mon

shares.

;

Panama( Republic of)
Oct. 9

fice—ISSaCWtishireBIvdvLosAngeles 17, Calif.; Under-,
writer—Waldron & Co., San Francisco 4, Calif.
Nedow Oil Tool Co.

'■'/

debt' arid

■

(Government of)

Heabody.& Co., Nevv York.

(II./28)

Northeast Telecommunications, Inc.
Oct. 20 (letter of. notification) 300,0(»0 shares of com¬
mon stock (par lO cents),
Price—$1 per share. Proceeds
—To*, complete a two' - way telecommunication mobile
—122

Co.> ,Omaha^ Neb. (11/26)
debentures, due

ameridriiei|t. Pro¬

bank loans incurred for payment of
including the' piirchrise oi securi¬
ties issued/by subsidiary companies for their construct
tion costs; and for other corporate purposes.
Undcrwriter—Biyth & Co., Inc., New York.

Calif.

Pennsylvania Power Ce.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.
Pfoccridfir^-Tp Yedeem a like amount of 5% first mort¬
gage bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld 8c Co.:
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman Brothers, Eastman Dillon, Union Securities &
Co., Salomon Brios. & Hutzler and LadenbUfg, Thalmarin
& Co./(jointly); Merrill Lynch/Pierce, Fenner & Smith
and Dean Witter & Co. (jointly). Bids — Tentatively
had been/expected to be received up to 11 a.m. (EDT)
on Aug. 27 but eompany on Aug. 22 decided to defer
sale pending improvement in market conditions.

repay

1958 construction costs,

Northwest Gas & Oil Exploration Co.
;/
Augl 22 (letter of notification) 300,00Q sharel of c.Qjnmon
stock (pal" 10 cerits)., Price—$1 per share. Proceeds—
For acquisition lof "additional gris arid oiL' interests and
corporate administrative expenses. Office—li50 Broad¬
.

New York 38, H. Y. Underwriter" —; Greenfield &
Co., Inc., New York 5, N. Y.
way,

working" capital.' OfficefMl Flrimingo; PIa2a;t Hialeah.
Fla.
Underwriter—Henry & Associates, Inc.* 11 Fla¬

ic Pioneer Trading Corp., Bayonne, N. J.
Nov. 10 filed 10,000 shares of $8 cumulative preferred
stock, series A (par $100) and $1,000,000 of 8% subordin¬
ated debentures, series A, due Dec. 1, 1968 to be offered
in units of a $500 debenture and five shares of pre¬
ferred stock.
Price—$1,000 per unit. Proceeds — For

mingo Plaza, Hialeah, Fla.

general corporate purposes. Underwriter—None.

Oak Ridge, Inc.

Sept. 4 (letter of notificatipri) 100,000 shares/of common
Stock (par $1). < Price — $3 per share.1 Proceeds—For

ic Polaroid Corp^

T Oil, Gas A Minerals, Inc.
Nov. 4 (letter of notification) 150,000 shares, of common
stock (par 35 cents). Price—$1 per share.; Office—Na¬
tional Bank of Commerce Bldg., Newr Oriearis. 12, La.
Underwriter—Assets Investment Co.; Inc./Hew Orleans;
La-

••

•

For mortgage payment, property survey,'.construct motel
restaurant, etc. Address—P. O. Box 44, Mesilla Park,
N. M. Underwriter—^None.
:

arid

(11/26)

173,616 shares of common stock (par $1) to
subscription by common stockholders of

be offered for

—Rassco

basis.

Israel

Corp., New York,

Offering—Expected late this

"best

efforts^

year,

Relur Corp.
r--;Oct. 16 (letter of notification)
stock (par five cents). Price
-

150,000 shares of common
$2 per sare, Proceeds—
For inventories and working capital. Office—1007 South
21st Avenue, Hollywood, Fla. Underwriter—Name to be
supplied by amendment.
Remo Corp., Orlando, Fla.
Sept. 22 filed 100,000 shares of class A common stock.
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriter — Citrus Securities Co.,
Orlando, Fla.

Reynolds Engineering & Supply, Inc.
Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1). Price — $5 per share. Proceeds — For
working capital. Office—2118 N. Charles St^, Baltimore
18, Md, Underwriter—L. L. Bost Co., Baltimore, Md.
Richwell
1

Petroleum

Ltd., Alberta, Canada

June 26 filed 1,998,716 shares of common stock (par $1).
Of this stock, 1,174,716 shares are to be sold on behalf of
the company and 824,000 shares for the account
tain selling stockholders. The company proposes

of cer¬
to nffer
the 1,174,716 shares for subscription by its shareholder*

at the rate of one

new

share for each three shares held

(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment.
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to working
capital. Underwriter — Pacific Securities Ltd., Van¬
couver, Canada.
Rocky Mountain Quarter Racing Association
31, 1957 (letter of notification) 300,000 shares ot
stock. Price—At par ($1 per share). Proceed*

Oct.

common

repay

outstanding indebtedness. Office—Littleton^
B. Ford Co., Windover Road,

Underwriter—R.

Colo.

Memphis, Tenn.
Routh Bobbins Investment Corp.

Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock.
Price—Of debentures, at par (in units of $109 each);
and of stock, $1 per share. Proceeds —For investment*
and working capital.
Office—Alexandria, Va. Under¬
writer—None.

Rural Telephone Co.,

Knox, Pa.

Sept. 29 (letter of notification) 3,000 shares of common
stock (par $10) to be offered to stockholders on the
basis of one new share for each three shares held; light*
will expire on Oct. 31, 1958. Price—$20 per share. Pro*
ceeds—For installation, construction and Working cap¬

ital.

Underwriter—None.

Scientific-Atlanta, Inc.
Sept. 11 (letter of notification) 6,500 shares of common
stock (par 50 cents) being offered for subscription by
common stockholders of record Sept,
10, 1958 on the
basis of one new share for each 20 shares held; rights to
expire Nov. 14, 1958. Price—$5 per share. Proceed*-—
For working capital. Office—2162 Piedmont Road, N. E^
Atlarita 9, Ga. Underwriter—None.
Service Life Insurance Co.

Sept. 26 (letter of notification) 3,567 shares of common
(par $1). Price—$18.75 per share* Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,

stock

Fort

Worth, Tex. Underwriter—Kay, 8c Co., Inc., Hous¬

ton, Tex.
Sheraton Corp. of America
Oct. 24 filed $26,500,000 of 7^2%

capital income sinking
proposes to offer $8,7
000,000 of the debentures in exchange for outstanding
fund

debentures.

The company

of one new share for
common shares and an additional $4,000,000 in exchange
to expire on Dec. 9.
for outstanding 4%% convertible debentures due March
Price—To be supplied by amendment.
Proceeds—For
•M, 1967, and 5% debentures due March 1, 1967 (tile
expansion and working capital." Underwriter—KUhn,
terms of the exchange offers are to be supplied by
Loeb & Co., New York.
amendment). An additional $1,OOQ,OO0 of the .new de¬
Ponce do Leon Trotting Association, Inc.
bentures are to be Offered to company employees At
Aug. 7 filed 400,000 shares of common Stock (par one
an offering price
equal to 95% of principal amount.
cent). Price—$1.50 per share. Proceeds—1To pay current
Continued on page 44
liabilities, for new construction and working capital.
record Nov. 25, 1958 on the basis
each 21 shares then held; rights

,
^

df Organ Mountain Enterprises,.lac.
v
Nov. 3 (letter of notification). 28$,500 shares/of common
stock (par 10 cents)/ Price—$1; per share.^ Preceeds—

Nov. 6 filed

$500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwrites

—To

Corp.
(letter of notification) 10,000 shares of common
stock (par $1). Price—At market (not to exceed an ag¬
gregate of $100,000). Proceeds—To a selling stockholder.
Office—1365 Jarvis, Ferndale, Mich.
Underwriter—Wm.
C. Roney & Co., Detroit, Mich.

Nov. 5 filed, $30,000,000 of sinking fund

pjov. -l; 19781 Price-—To be supplied by

Chicago, 111.

Peninsular Metal Products

ceeds—To

Under-

Offering—Tem¬

+ Papercraft Corp., Pittsburgh, Pa.
12 filed 250,000 shares of common stock.
Pricebe supplied by amendment.
Proceeds—To selling
stockholders.
Business—The corporation is a leading
manufacturer and distributor of gift wrapping products
for. all occasions.
Underwriter—Eastman Dillon, Union

Oct.

—

Pearson,

Northern Natural Gas

To be supplied by
outstanding

certain

road program.

writer—Investors Investments Corp., Pasadena,

capital. Office

42nd: St., Hew Ybrk, N. Y.
Underwriters
Murphy & Co., Inc. and Reilly, Hoffman
Co., Inc., both of New York.

—

retire

Fund,> Inc.f Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).
Price—At market. 'Proceeds—-For investment.
Under¬

unit; for test equipment and for working

Price
To

feeder

Peckman Plan

i-.

—

Panama's

Securities & Co.,

Uridcrwriter-^Ktdder,
•

Proceeds

Nov. 7 filed $10,000,000 12-year bonds due Dpo. 1, 1970.
Price—To be supplied by 'amendment.
Proceeds—For

capital wotlM and expenditures.

April .1, 1988.
for

Nov.

Campbell Investment Co., Inc.

Houston, Tex.
New Zealand

Brothers, New York.
porarily postponed;
v

cerit). Price—$2 per share. Proceeds—To
pay J ban ;?to acquire fishing tools for leasing8;' arid for
working capitaL Office—931 Srin Jacinth Bldg., Houston
Underwriter—T. J.

writer—Lehman;

shares of commor.

stock (par one

Tex.

mature

amendment.

i?/' ./V"/''''/

-/•

May 5 (letter of notification) 150,000

;

fi^d $16,700,000 of external secured bonds of 19.58

.//"'/

—

....

Rassco Financial Corp.
June 26 filed $1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denominations

outstanding

/• Pacific Telephone & Telegraph Co. (12/1)
Oct/ 24 filed 1,594,604 shares of common stock to be
offered for subscription by holders of outstanding com¬
mon and preferred stock of record Nov. 26, 1958 on the
basis of one new share for each eight common or pre¬
ferred shares held; rights will expire on Dec. 30, 1958.
Price—At par ($100 per share). Proceeds—To repay ad¬
vances from American Telephone & Telegraph Co.
Un¬
_
derwriter
None.
Control
Of the 832,000 shares of
6% preferred stock (par $100) and 11,936,835 shares of
common Stock (par $100) outstanding as of Oct, 24, 1958,
thdre were owned by the American Telephone & Tele¬
graph Co. 640,957 preferred shares and 10,790,943 com¬

Office—i-1406 Pearl ;St., Boulder, Colo.
UnderwriterWestern. Securities Co., Boulder/ Colo,v:^

—None.

outstanding

l6 (letter ©(notification) 2,916*000 shares of non- : : Pacific
Telephone & Telegraph Co. (11/18)
assessable common stock (par one cent). Price—10 cents .
Oct. 24 filed $80,000,000 of 32-year debentures due Nov.
per share.; Proceeds—For mining expenses. Underwriter
1, 1990. Proceeds
To repay advances from American
—Birkenmayer & Co., Denver, Colo.
Telephone & Telegraph Co., the parent. Underwriter—
To be determined by competitive bidding. Probable bid¬
r; National Educators Finance Corp.
Mv• ■:
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
June 4 (letter of notification) 50,000 shares/of pommor
Bids-r-To be received up to 11:30 a.m. (EST) on Nov.
Stock, Price—rAt par (50 cents per share). Proceeds—
18 at Room 2315, 195 Broadway, New York, N. Y.
To train: and procure persons to implement and carry
out

Preferred Risk Life Insurance Co.

Sept. 8 filed 250,000 shares of common stock (par $1),
Price—$4 per share* Proceeds—To increase capital end
surplus.
Office—Colorado Springs, Colo. Underwriter

latter),

jjday

purpose.

The Commercial and Financial Chronicle

(2020)

Continued

from

page

Proceeds

the

Proceeds

—

For general corporate pur¬

Sheridan-Belmont Hotel

Price—
—

made

$50 debenture and

the company's construction

connection

one

the

Webster Securities Corp. and

to replenish working capital expended in
Underwriter—None.

fice—11

Commerce

Dunn

President.

•

Timothy H.

Street, Newark, N. J.

Light & Power Co.

(11/26)
stock, to be of¬

110,000 shares of common
fered for subscription by common stockholders

Price—At par ($1 per share). Proceeds—For pur¬
chase of Cadillac Oil Co., working capital, etc. Office—
stock.

Blvd., Los Angeles 46, Calif.

Underwriter—

None.

rate of one

new

supplied by amendment.
funds

the

share for each 10 shares held of record

Nov. 25, 1958; rights to expire on Dec. 15.
eral

the

promissory notes.

Price—To be

Proceeds—To be added to gen¬

and

company

used

for

payment

Underwriters—Blyth & Co., Inc. and

The First Boston
State

Life, Health & Accident Insurance Co.

tion

July 9 (letter of notification) 50,000 shares of common
(par $1). Price—$5 per share. Proceeds—To be

stock

invested in stocks

and

bonds

and

acquire other life

offered to

Corp.

(11/18)
Oct. 27 filed $10,000,000 of sinking fund subordinated
debentures due 1978, with 1958 series warrants to pur¬
chase class A common stock. Price—To be supplied by
amendment.

notes

the

company.

amount; and for stock p
Proceeds—To erect and operate one or mor#
chemical processing plants using the Bruce Williami
Process to beneficiate manganese ores.
Underwriterper

share.

Southwest Shares, Inc..

Austin, Texas.

if Structural Fibers, Inc.
'Nov. 4 (letter of notification) 15,700 shares of common
stock to be offered by company for
subscription by stock¬
holders of record Nov. 17, 1958 at the rate of one
share
for each two shares held. Price—At
par ($10 per

Proceeds—To retire

capital.

Beil

outstanding debts and for working
Chardon, Ohio. Underwriter

! * Super Food Services, Inc.

(11/17-21)

Oct. 28 filed 110,000 shares of
preferred stock, first series,
110,000 warrants, first series, to purchase a like
number of common shares to be offered in units of one
preferred share and one warrant (warrants are exercis¬

and
.

able at $2.50

per common share). Price—$20 per unit.
Proceeds—To purchase
outstanding shares of F. N. John¬
son

Co.

Underwriter—W. H. Tegtmeyer. & Co,,
Chicago,
HI.
[In addition, the company is offering warrants to
purchase 6,347 common shares to holders of class A
cap¬
ital stock, if converted to common
shares on or before
Dec. 31, 1958; and warrants to
purchase 6,000 shares are
being given to Central Illinois Securities
Corp., which
has subscribed to 25,000 of the units
being offered. A
total of 42,356 common
shares are being offered to class
A capital shareholders in
exchange for said class A
shares on a share for share
basis.]
★ Surrey Oil & Gas Corp., Dallas, Tex.
Nov.

filed 300,000

Price—$3

per

share.

shares of

common

stock

(par $1).

Proceeds—To retire current liabil¬

ities and for working capital.
Co., New York.

Underwriter—Peter

Mor¬

debentures series 1958, to be offered in
units of one
share of stock and $50
principal amount of debentures
to be offered to stockholders on the basis of
one unit for
..each two shares of stock owned
(500 of the shares are
being offered to the President of the
company). Price—

$60 per unit.
543

Whitehall

Proceeds—For working capital. Office—
St., S. W., Atlanta, Ga. Underwriter—

None.

Timeplan Finance Corp.
March 25 (letter of
notification) 27,272 shares of 70-cenl
cumulative preferred stock (par
$5) and 27,272 sharei
of

dOf

common
one

stock

(par 10 cents) to be offered in uniti

share to each class of stock.

Price—$11

per

unit

received

Room

N. Y., up to noon

2033,

(EDT)

Rector

Street,

New

York,

Sept. 9, but were postponed
be received on such day sub¬

Sept. 3. Bids will now
sequent to Sept. 22, 1958 but not later than Nov. 25, 1958
as shall be designated by
company.
•

Von's

Grocery Co., Los Angeles, Calif.

(12/2)

Nov. 5 filed 360,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To selling stock¬

holders.

Underwriter—Hemphill, Noyes & Co., Los An¬
geles, Calif., and New. York City.
•

Waltham Precision Instrument Co., Inc.
24 (letter of notification) 253,334 shares

Oct.

(11/14)]:
of

com¬

stock to be offered for

mon

subscription by stockholders
for each eight shares held
as of Nov.
12, 1958 (with an oversubscription privilege);
rights to expire on Dec. 1, 1958. Price—At par ($1 per
share). Proceeds—For working capital.
Office—Wal¬
tham, Mass. Underwriter—None.
the

basis

one

Oct. 28

(letter of notification) 7,500 shares of common
(par 50 cents) to be offered to certain employees.
Price—$13 per share. Proceeds—To selling stockholder.
stock

Office—42-16 West

None.

■'

Street, L. I. C. 1, N. Y. Underwriter—

Wilier Color Television System, Inc.
April 2 (letter of notification) 72,035 shares of common
10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares
are to be publicly offered at $3 each.
Proceeds — For
general corporate purposes. Office—151 Adell Avenue^
Yonkers, N. Y. Underwriter — Edwin Jefferson, 39
Broadway, New York 6. N. Y.
stock (par $1) of which

Wilmington Country Club, Wilmington, Del.
27 filed $500,000 of debentures due 1991 (non in¬

Oct.

terest

$25)

bearing) and 800 shares of common stock (par
be, offered .to members of this club and of

Hough, Inc., St. Petersburg, Fla.

Offering—Ex¬

per

Price—$375 per common share and $1,000
debenture.
Proceeds — To develop property and
Underwriter—None.

if Winn-Dixie Stores, Inc.
Nov. 5 filed 75,000 common shares to be offered pursuant
to

the

company's

Stock

Purchase

Plan for

Employees,
the
company's Executive Incentive Stock Option Plan. :
and 25,000 common shares, to be offered pursuant to

^Wisconsin Public Service Corp,
Nov. 12 filed 50,000 shares of cumulative preferred stock

(12/3)
10 filed $25,000,000 of External Loan Bonds dated
1, 1958 and due in 1961, 1962, 1963 and 1968. Price—
To be supplied by amendment. Proceeds—To meet the

(par $100).

Price—To be supplied by amendment.

Pro¬

Nov.

ceeds—To repay short-term bank loans incurred for 1958

Dec.

construction.

Union's capital requirements.
& Co. Inc., New York.

Underwriter—Dillon, Read

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition ot
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office
space, bj
lease or purchase.
Office — Wilmington, Del. Under¬

writer—None.

Myrl

McKee

Portland,

Ore.,

President.
United Security Life & Accident Insurance Co.
Aug. 22 filed 120,000 shares of class A common stock.
Price—$3 per share. Proceeds—To provide the reserves
required to be held in life and accident insurance poli¬
cies, and to pay the necessary expenses in producing

insurance.

Office—Louisville, Ky.

Edmond M.
U.

Underwriter—None.

Smith, is President.

Polymeric Chemicals, Inc.
Oct. 22 (letter of notification) 26,285 shares of common
stock (par 50 cents) being offered
for-subscription by
stockholders of record Nov. 3, 1958 on the basis of four
new shares for each 13 shares
held; rights will expire
on Nov. 24, 1958.
Price—$11 per share. Proceeds—For
equipment, bank loan and for working capital. Office—
P. O. Box 546, Canal & Ludlow
Sts., Stamford, Conn.

Underwriters—Merrill Lynch, Pierce, Fenner &
Smith, New York; Robert W. Baird & Co., Inc.,
Milwaukee, Wis.; and William Blair & Co., Chicago, 111.

^ Wood
Oct. 31
of

(Alan) Steel Co., Conshohocken, Pa.
(letter of notification) an undetermined number

certain

common

employees

stock

through

(par $10) to be offered to
payroll deductions.
Plan

starts Jan. 31, 1959 and ends Oct. 31, 1959. Price—At the
market on the American Stock Exchange and Philadel¬

phia-Baltimore Stock Exchange or private sale (not ex¬
ceeding the lowest of the current or last offering price on
the American Stock Exchange). Proceeds—To buy stock
for members of the company's Stock Purchase Plan for
1959.

Underwriter—None.

if Wool foam Corp.
Nov. 6
stock

(letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share. Proceeds—

For general corporate purposes. Office—44 W. 18th St.,
New York, N. Y. Underwriter—C. H. Abraham & Go.,

Inc., New York 17, N. Y.
World Wide

Oct. 28 filed

Helicopters Ltd.

(11/24)

American

depositary receipts for 212,158
(common) stock (together
with a like number of the shares. Price—To be supplied
by amendment. Proceeds—To selling stockholders. Un¬
derwriter—Blair & Co., Incorporated, New York. Office
shares

£1

par

ordinary

—Nassau, Bahamas.

Underwriter—Dominick & Dominick, New York.
Uranium Corp. of America, Portland, Oro.

April 30,1957 filed 1,250,000 shares of
16

cents).

Price—To

pected to be $1
purposes.

Graham

per

common stock(par
by amendment (ex¬
Proceeds—For exploration

suoolied

share).

Underwriter—To be
Albert

Griswold

named

Portland,

amendment.

Ore.,

Pres¬

ident.
.

Thomas Paint Products Co.

if Union of South Africa

gan &

May 26 (letter of notification) 1,250 shares of common
stock' (par $10) and $37,500 of
6% serial subordinated

Proceeds—To be added to the

pected this week.

share).

Office—Fifth Ave.,

—None.

bidding. Probable bidders: Halsey, Stuart & Co.]
Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co., and
Smith, Barney & Co. (jointly). Bids—Were to have been

build certain facilities.

100% and accrued interest.

Underwriters-

Strategic Minerals Corp. of America, Dallas, Tex
$2,000,000 of first lien mortgage 6% bond*

tive

Concord Ltd.

general funds of the company and initially used to re¬
duce bank loans and short term notes.
Underwriter—

Johnston, Lemon & Co., Washington, D. C.; and East¬
Dillon, Union Securities & Co., New York.

March 31 filed

program of the company and its subsidiaries
amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined
by competi¬

Union Finance Corp., Tampa, Fla.
Sept. 26 filed $500,000 of 6% 20-year sinking fund con¬
vertible capital debentures due Oct. 15, 1978. Price —

man

and 975,000 shares of common stock
(par 10 cents). Priet
—For bonds, 95% of princmal

a bank agreement and cash generated
the business will be used to carry forward the con¬

Bldg., Seattle 1, Wash. Underwriter—H. P. Pratt
& Co., 807 Hoge Bldg., Seattle 4, Wash.

Proceeds—To redeem and retire all of the

short-term

regular full time employees, including officers

ties

outstanding 5% 10-year sinking fund subordinated de¬
bentures, due April 1, 1960 and all of the outstanding
5% seven-year sinking fund subordinated
debentures,
due April 1, 1960; the balance will be added to the com¬
pany's general funds to be used to reduce bank loans
and

Corp., both of New York. [Registra¬
11,000 additional common shares to be

Tungsten Mountain Mining Co.
v
Aug. 11 (letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$1.50 per share. Proceeds—
To extinguish present indebtedness, increase reserve for
contingencies and working capital. Office—511 Securi¬

Underwriter—Gates, Carter & Co., Gulfport, Miss.

State Loan & Finance

covers

of company.]

insurance companies. Address—P. O. Box 678, Gulfport,

Miss.

also

struction

if West Chemical Products, Inc.

Tucson Gas, Electric

Nov. 5 filed

(letter of notification) 300,000 shares of common

Sunset

company

Corp., Newark, N. J.
Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4,000
shares of 6% preferred stock
(par $100) and 48,000
shares of common stock (par $1) to be offered in units
of $8,000 of debentures, 20 shares of preferred stock and
240 shares of common stock.
Price—$10,240 per unit
Proceeds—To acquire, own and operate interests in pro¬
ducing oil and gas properties. Underwriter—None. Of¬

Paine, Webber,, Jackson &

'if Stanway Oil Corp.

9151

Price—100% of pirncipal
Proceeds—To be added to the general funds of

Triton

Curtis, both of New York.
Oct. 20

(N. Y.)
convertible subordinated

the acquisition of aircraft,

program

Underwriters—-Stone

Airways, Inc.

debentures, due Oct. 1, 1968.
amount.

for the payment of bank-loans

therewith.

Andersen-Randolph

borrowings under

Caribbean

Trans

^-Southern Colorado Power Co. (12/2)
Nov. 10 filed 50,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, will be applied to the
payment in part of obligations incurred or to be incurred
or

—

Inc., Salt Lake City, Utah.

Oct. 6 filed $1,100,000 of 5%%

preferred stock. Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
line., New York.

during 1957 and 1958

wells and for genera,

Co., Boulder, Colo.

3172

in connection with

E. Main

10 filed 500,000 shares of common stock (par $5).
Price—$10 per share. Proceeds—For working capital and
construction program.
Underwriter—Allen Investment

if Sire Plan of Elmsford, Inc., New York
Nov. 10 filed $250,000 of 6% 10-year debentures and 5,000 shares of 66% participating preferred stock (par $50)
a

111

Nov.

Rd., Chicago 14, 111. Underwriter—None.

—

if Tower Merchandise Mart, Inc., Boulder, Colo.

Co.

tion by common stockholders on a pro rata basis.
At par. Proceeds—For working capital.
Office

to be offered in units

new

Underwriter

corporate purposes.
& Co.,

basis.

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip¬

North Sheridan

Proceeds—To drill two

share.

poses, including the financing of the cost of any acquisi¬
tions and new construction. Underwriter—Sheraton Se¬

curities Corp., Boston, Mass, on a best efforts

Office

Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 pei

offers will be

cipal amount.

capital.

Underwriter—Valley Securitiei
Corp., Morristown, Tenn.

remaining $13,500,000 of debentures, plus any part
$12,000,000 not taken pursuant to the exchange
offered for public sale at 100% of prin¬

The

For working

—

Morristown, Tenn

Thursday, November 13, 1958

...

Utah Minerals Co.

April 11 (letter of notification) 900,000 shares of com¬
stock. Price—At par (10 cents per
share). Proceeds
mining expenses. Office—305 Main St., Park City,
Utah. Underwriter—Walter Sondrup &
Co., Salt Lak«
City. Utah.
mon

—For

Utah Oil Co. of New

York, Inc.
May 6 (letter of notification) 300,000 shares of capital
stock

Price
At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
—

Utah Power & Light Co.
June 26 filed $20,000,000 of first
mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬
gage bonds, 5 Y4% series due 1987, to repay $4,000,000 of
bank borrowings, and the balance
together with further

Acme

Steel

March 21 it

was

Co.
announced that.the company plans

addi¬

tional financing this year, in the form of common stock,
preferred stock, or a combination of the two, including
bank loans.
Proceeds—For expansion program, work¬
ing capital and inventories. Underwriters—Blyth & Co.,
Inc. and Merrill Lynch. Pierce. Fenner & Smith.
Austria

July 15 it

(Republic of)

was

announced that the country contemplates

the issuance and sale of

$30,000,000 bonds. Proceeds—For
improvements. Under¬
writer—May be Kuhn, Loeb & Co., New York. Offer¬
ing—Expected in October or early November.
electric power projects and other

Bank of New York

Oct. 21 stockholders of record that date

right to subscribe

on or

were

given the

before Nov. 14 for 30,000 shares

of $100 par capital stock in the ratio of one new share

each eight shares held.

for

Price—$225 per share. Proceeds
<—To increase capital and surplus. Underwriter—Morgan
Stanley & Co., New York.

The Commercial awl Financial Chronicle

Number 5794

Volume 188

Chicago & North Western ?Ry.

(11/25)

Bids will-tie-; received up to rioon (CST) on Nov. 25 by
the company for the purchase from it of $1,875,000 addi¬

(2021)

—$10 per shaTivless ah underwriting discount of 8%%
Proceeds—For investment...
'fj.

—To be determined

Aug. 25 it was reported that the company may issue and :
sell $25,000,000 of preferred stock; Underwriters—May
be The First Boston Corp. and Glore Forgan & Co., both
of New York. Offering—Expected late in 1958 or during
the first three months: of 1959.

Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc;>* /Easthian

Dillon, Union Securities & Co. and Salomon Bros. &
(jointly) ;JKuhn, Loeb & Co., Blyth & Co., Inc.,
Kidder, Peabody ' & Go. and /Merrill Lynch, Pieree,

Michigan Boll Telephone Co.

tional equipment trust certificates to mature in 15 equal
Aug. 12 directors approved plans to sell $40,000,000 of
annual instalments.. Probable bidders: Halsey, Stuart,>
34-year debentures; Proceeds-—To redeem a like amount
& Co. Inc.; Salomon Bros. & Hutzler.
of 43A% debentures due November, 1992. Underwriter
Commonwealth Edison Co.

Hutzler

Fenner & Smith
Brothers.

(jointly); White, Weld & Co.; Lehman

Registration

—

Tentatively planned for.Nov.

Probable
bidders: Halsey, Stuart & Co. Inci; Morgan Stanley &

21. .Bids—Expected to be received

Co.

•

Bids—Had

been

by competitive bidding.
tentatively

scheduled to

re¬

ceived

Oct; 27 it

pone

on Sept. 16, but on Aug. 26 it was voted to post¬
this refunding program because of present market
.conditions.
1\r-i

Dec. 16.

T. I. M. E. Inc.
was

common

Will

(12/2)
"reported that

stock

an offering of 260,000 shares
(par. $2) is planned, of which 125,000

for account

company.

Proceeds—To

retire

•". Denmark

(Kingdom of)

—

Sept. 2 it was reported that an issue of between $20,000000 to $304)00^000 may possibly be placed on the Ameri¬
can- market this Year.
Underwriter—Kuhn, Loeb & Co.,
New York.

'■

•-

•.

r. •

equipment purchase obligations and, for general
corporate purposes.; Business—Trucking concern. " Un¬
March 28, company announced it plans to issue on or
derwriter—Blyth & Co., Inc., New York and San Fran¬
before Dec, ,31r 1958 $3,200,000 of first preferred, mort- /
cisco, Calif,
-■ r--- ■
-v„
■
''
gage bonds: May be placed privately. Proceeds — To
Union Electric Co., St. Louis, Mo.
,■
repay bank loans and for working capital. ~
March 28 it was announced company plans to market
Midland

—

Enterprises, Inc.;

Moore-McCormack Lines, Inc.
^ r/';;"
.V !';
;
March 24 it was announced company plains to issue and
Sept. 19 it was announced Bank plans to offer to Its
sell $24,000,000 of government insured bonds secured by
stockholders of record Oct. 2, 1958 the right to subscribe
for 125,000 additional shares of capital stock (par $20)
a first preferred ship mortgage on the liners S; S. Brasi}
on the basis of one new share for each 10 shares held;
and S. S. Argentina. Underwriters—Kuhn, Loeb & Co.
rand Lehman Brothers, both of New York.
rights-to expire on Jan. 10, 1959.Price—$40 per share.
Offering —
Proceeds—To increase capital and surplus. Office—931
-Postponed because of uncertain market conditions.
Main Street, Houston 1, Texas.
New York State Electric and
V First

City National Bank

about $30,000,000 of common stock in the latter part of

this

Co. and Shields & Co.

Dec;

it
to

was

Dallas, Texas

announced

stockholders

(12/2)
vote

will

March 7 it was announced that

;

plan to offer 290,000 shares of
additional common stock (par $10) to stockholders of
record Dec: 2, 1958 On a one-for-eight basis; rights to
expire on Dec, 18. - Price—$27 per share. Proceeds—To
increase capital and surplus. Underwriters —-Equitable
Securities :Corp., Dallas,: Texas, and
Merrill Lynch,
Pierce, Fenner & Smithy Fort Worth, Texas.
approve

•;

(11/19)

was announced Bank plans to offer to its stock¬
holders of record Nov. .19, 1958 the right to subscribe on

rata basis for an additional 17,000 shares of capital

pro

stock (par $25).

Price—$55 per share,. Proceeds-^To in¬
crease capital and surplus.. Underwriters—Van Alstyne,
Noel & Co.i New York.
/
-r':
V
.

Great Atlantic A Pacific Tea Co.,

Feb. 19 it

-was

Inc.

reported a secondary ottering of common

voting stock is expected this year, Underwriters — May
include: Blyth & Go., Inc.; Lehman Brothers and Smith,
Barney & Co.
v .
Haverhill Gas Co.

Oct.

stockholders

approved a proposal to increase
capital by an additional 12,285 shares of
capital stock (par $10) which would be offered for sub¬
scription by stockholders on a pro rata basis, with an
additional subscription privilege, Stockholders will also
vote on authorizing issuance and sale of $900,000 5^%
first mortgage bonds, due Oct. 1, 1983. Proceeds—To¬
gether with other funds, will be used to pay bank debt,
and for expansion purposes.
Underwriter — Stone &
Webster Securities Corp., New York.
authorized

Ifoubtoiit, toe.'

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock ; of which
100,000 shares are to be sold for the account of selling
stockholders. Proceeds—For expansion. Underwriter—

Glore, Forgan &, Co., New York.
sometime in November.

1959, depending

market

conditions, Underwriter—For
Corp., New York.

upon

•

Norfolk ft Western Ry.

prevailing /
stock: t tracts, for piggyback equipment :and acquisition of addi¬
tional equipment. Underwriter—Merrill Lynch* .Pierce,
Fenner& Smith, New York. . ...
/
,/ /

any common

The First Boston

(11/13)

Nov. 13 for the purchase from it of $6,690,000 equip¬
ment trust certificates due- semi-annually May 1, x»o9
to Nov. 1, 1973, inclusive. Probable bidders: Halsey,
on

Nov. 6 it
a

Offering — Expected

it International Bank for Reconstruction and
Development (World Bank)/', (11/17-21)
Nov. 12 Eugene R. Black, President, announced that the
Bank proposes to offer a new issue of $100,000,000 4^%

15-year bonds due Dec. 1, .1973. Underwriters—The First
Corp. and Morgan Stanley & Co., both of New
York.
Boston

Japan(Empire of)
Aug. 20 it was stated that an issue of between $30,000,000
and $504)00,000 of bonds may soon be publicly offered
on the American market.
Proceeds—For public? works

United States Freight Co. (12/1)
Nov. 4 it. was announced company plans to offer ? to
stockholders the. right to subscribe for 150*000 additional

from additional financing will be required for construc¬
tion expenditures for the balance of this year. The man- ? shares of capital stock. It is planned that the offering
agement intends to negotiate a new tine of cretin- witn » " will begin about Dec. 1 and expire about Dec. 15; Price
—Expected to be below the market price at the timet of
group of banks and expects to sell equity securities later
the offering, Proceeds—To repay, conditional sale con¬
this year or in early

Bids will be received by the company- up to noon (EST)

-j^ Rrst National Bank of Jersey City (N. J.)
;V,

approximately $7,500,000

(jointly); Lehman Bros.; Merrill

Lynch, Pierce, Fenner & Smith.

Gas Co.

First National Bank in

in the first quarter of 1959, but this financ¬
be put off until June, 1959. Proceedsrr-For con¬

year or
may.

Underwriter-^-May be determined by
competitive bidding. Probable bidders: White, Weld &

Oct.

ing

struction program.

Stuart & Co. Inc.,

Salomon Bros. & Hutzler.

* Norfolk ft Wester* Ry. (12/18)
Bids ar^'ex^ected fd be received by the company on Dec.
18 for the purchase from it of $5,850,000 equipment trust
Certificates. Probable bidders: Halsey, Stuart & Co. Inc.;
Salomon Bros.'8t Hutzl<?r.
•'
' "
;
Northern Illinois Gas Co.

June

will sell late this
year $10,000,000 mortgage bonds but on Sept. 12 it was
stated that immediate financing will not be necessary.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; First Boston
Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.!
10

was

announced

company

Universal Oil Products Co,

v'.
Aug.. 13 it was reported/that anissue of common stock
will-soon be offered to the public, the proceeds of which
may run between $50,000,000 and $60,000,000. Approval
of the transaction rests with the New York State Su¬
preme Court (expected within two months). Proceeds—
To

plans to offer to its
stockholders the right to subscribe for 290,400 shares of
capital stock (par $12.50) on the basis of one new share
for each two shares held (following 100% stock dis¬
tribution). Stockholders will vote Dec. 10 on both pro¬
posals. Subscription warrants are expected to be issued
late in December or early in January.
UnderwriterMay be The First Boston Corp., New York.

Petroleum

Research

Fund

the

American

Chemical Society.

Underwriters—Expected to be "Leh¬
Brothers, Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Smith, all of New* Ybrtc. Offering—
man

Expected in November.

Upjohn Co., Kalamazoo, Mich.
Oct/28 it

was

announced that

public offering of stock

of this company will be made following reincorporation
in State of Delaware and 25-for-l stock split. Proceeds

—To

selling stockholders.
ley & Co., New York.
.

★ Northern Insurance Co. of New York
Nov. 8 it was announced company

.the

Underwriter—Morgan Stan¬

Valley National Bank, Phoenix, Ariz.

Oct.

common

subscribe for

stockholders were given the right to
additional 101,933 shares of common

stock"

(par $5) * at'the rate of" one hew share for each 15
shares held of record Oct. 30, 1958; rights to expire on
Nov.
R.

21.

Staats

Price—$35 per share.
& Co. and Blyth &

Underwriters—William

Co., Inc., both of Los

Angeles, Calif.

Venezuela (Government off)
July 1 the Government announced that Kuhn, Loeb^ft
Co. and Kidder, Peabody & Co., both of New York, have
Oct. 21 it was announced that company plans early
been selected as financial advisors to develop a financial
registration of $50,000,000 28-year first -refunding mort- i
program for the country. As a first step in the pro¬
gage bonds due 1986. Proceeds—To be used to finance
gram a short-term credit is being negotiated between the
construction program and to repay bank loans. Under¬
government in cooperation with the two investment
writer—To be determined by competitive bidding. Prob¬
banking firms and a syndicate of commercial bank? in
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
the United States, Canada and the United Kingdom.
& Co. and Drexel & Co.
(jointly); The First Boston
The three institutions which are to head this syndicate
Corp.; White, Weld & Co. Bids—Expected to be received
are The Chase Manhattan Bank, The First National City
up to noon (EST) on Dec. 10.
Bank of New York, and Bank of America National Trust
Public Service Electric ft Gas Co. (12/2)
& Savings Association. The Chase Manhattan Bank will
Sept. 22 it was reported that the company plans offering
be the fiscal agent for the credit. The amount of .the
700,000 additional shares of common stock* and plans to
new financing involved is in the neighborhood of $250,apply to the State Public Utility Commission seeking
000,000. The purpose is to restore government balances
exemption from competitive bidding. Underwriter—May
which have been reduced by the repayment of excessive
be Merrill Lynch, Pierce, Fenner & Smith.
short term obligations previously incurred.
South Doast Corp.Virginian Ry.
;
Oct. 27 it was reported that the company is planning
Aug. 26 the directors approved a proposal to exchange
some long-term financing.
Proceeds — To replace, an
2,795,500 shares of 6% cumulative preferred stock (par
interim loan obtained in connection with the purchase
$10) for $32,148,250 new 6% subordinated income sink¬
of properties from Gulf States Land & Industries, and
ing fund debentures to mature Aug. 1, 2008 on the basis
to retire
approximately $1,200,000 of first mortgage
Of $11.50 principal amount of debentures for each pre¬
4-14% bonds due 1960. Underwriter —May be Hornferred share. Offer will begin on Nov. 17 and expire on
blower, & Weeks, New York.
^
;
Jan. 16. Dealer-Manager—Harriman Ripley & Co. Inc.,
Southeastern Fidelity Fire Insurance Co.
New York.
Aug. 26 it was announced that the company in all prob¬
Vita Food Products, Inc.
^
ability will offer additional common stock to its share¬
Nov. 3 it was reported that the company plans to issue
holders in the near future. Proceeds—To expand opera¬
15,000 shares of common stock. Proceeds — To acquire
tions. Office-— 197 Auburn Ave., N. E., Atlanta, Ga.
Mother's Food Products, Inc.
Underwriter—Granbery,
Underwriter—None.
Marache & Co., New York.
Southern Bell Telephone ft Telegraph Co. (12/9)
Wisconsin Power ft Light Co.
Sept. 22 directors authorized the issuance of $70,000,000
March 17 it was announced that company plans to Issue
of 35-year debentures to be dated Dec. 1, 1958. Proceeds
and sell $10,000,000 of first mortgage bonds. Proceeds^
—For construction program. Underwriter—To be deter¬
To retire bank loans and for construction program. Un¬
mined by competitive bidding. Probable bidders: Halsey,
derwriter
To be determined by competitive bidding.
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Tenta¬
Probable bidders: Halsey, Stuart & Co. Inc.; Smith,
tively scheduled to be received on or about Dec. 9. Reg¬
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
istration—Expected in mid-November.
Equitable Securities Corp. and Eastman Dillon, Union
!

Philadelphia Electric Co. (12/10)

projects, etc. Underwriter—The First Boston Corp.; New
York.

Kansas Gas ft Electric Co.

Chairman, announced that com¬
plans to sell some bonds originally scheduled for

March 31, G. W. Evans,
pany

mid-year. The proposed sale was subsequently deferred
until late 1958 or early 1959. Proceeds—About $8,000,000
for construction program. Underwriter—'To be determined

by competitive
bidding.
Probable bidders: Halsey.
Stuart & Co. Inc.; Kidder, Peabody & Co., and Merrill

Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp. (jointly); Glore, For¬
gan

& Co., and Goldman Sachs & Co. (jointly).

Kansas Power ft Light Co.
Feb. 14 it was announced company plans to issue and
sell $10,000,000 of first mortgage bonds due 1988. Pro¬
ceeds—For construction program. Underwriter—To he

determined by

competitive bidding.

Probable bidders

Halsey, Stuart & Co., Inc.; The First Boston Corp.; Glore
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.: Blyth & Co.. Inc.; Eauitable Securities Corp

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing $790,000 of outstanding notes ($658,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis. This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬
ton, Mass.
Master Fund,

Jan. 27 it

was

ment company

Inc., Fairfield, Calif.

announced this newly organized Invest¬

"lans to offer to bona fide residents of
capital stock (par $1). Price

California 10,0C3 shares of

—

Bell Telephone Co.
announced Missouri Public Service Com¬

Southwestern

July 10 it

was

mission authorized the company to issue $110,000,000 of

35-year debentures. Proceeds — To refund outstanding
$100,000,000 4%% debentures..,Underwriter—To.be de¬
termined by competitive: bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley &. Co.
Of¬
fering—Has been postponed. Bids had been expected
about Sept. 30,

Texas

1958.

Power ft

Light Co. (12/16)
reported that the company plans to issue
and sell $12,500,000 of first ^mortgage bonds due 1988.
Oct. 20 it

was

Securities & Co.

(jointly); White, Weld & Co., Kidder,

Peabody & Co. and Salomon Bros. & Hutzler (jointly);
First Boston Corp.
Offering—Not expected until
late in 1958 or early In 1959.

The

Worcester Gas Light Co.

Aug. 18 it was reported that the company plans the sale
of $5,000,000 first mortgage bonds. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook & Co. and Coffin & Burr, Inc.
(jointly); Kidder, Peabody & Co. and White, Weld &
Co. (jointly).

The Commercial and Financial Chronicle V..

(2022)

The

Indications of Current

Business Activity

week
Latest

Indicated

Steel

operations

Steel

(net tons)—

oil

Finished

(bbls.)

27,400.000

27,546,000

Jet. 31

2,144,000
13,039,000

2,523,000
12,071,000

12,276,000

27,024,000
1,902,000
12,077,000

7,123,000

7,227,000

6,709,000

7,354,000

—-1Oct. 31
Oct. 31

168,476,000

168,350,000

172,582,000

181,410,000

32,374,000

31,883,000

31,317,000

34,264,000

Oct. 31

Distillate fuel oil (bbls.)
Residual

fuel

166,414,000

163,916,000

156,528,000

175,129,000

67,580,000

67,854,000

68,742,000

59,343,000

674,477

674,264

677,016

556,584

568,741

572,109

at
at

(bbls.)

oil

7,580,000

East

7,753,000

jet. 31

(bbls.) at

unfinished gasoline

and

South

H7.752.000

7,013,585
7,507,000
26,563,000
1,730,000

Oct. 31

freight loaded (number of cars)

Revenue

freight received from connections (no. of cars)—Nov.
CONSTRUCTION

-—Nov.

—

Public
State

Bituminous

York

CIVIL

(tons)—

73,961,000

105,881,000
167,043,000

125,193,000

77,323,000

146,820,000

227,911,000
184,271,000

58,622,000

20,223,000

43,640,000

11,966,000

NOV.

147,509,000
125,419,000
22,090,000

Jov.

—

8,575.000

SYSTEM—1947-49

8,460,000
414,000

486,000

.«"•

INDUSTRIAL)

Finished

NOV.

—

12,330,000

12,067,000

t..

11,914,000

331

299

271

;

6.196c

$66.41

$66.42

Nov.

$42.83

$42.50

$42.83

$33.33

6.196c

5.967C

COTTON

28.625c

28.800c

26.150c

Nov.

30.975c

30.025c

26.150c

-Jov.

13.000c

—Nov.

12.800c

—

tin

(New York)

Aaa
Aa

12.000c

12.800c

13.500C
J

11.800c

97.375c

—

88.81

94.26

94.41

92.93

92.79

89.64

83.53

82.90

87.86

87.72

89.64

89.23

88.67

92.35

—Nov, 11

3.62

3.46

3.58

4:41

4.42

4.43

4.50

4.12

4.11

4.12

4.21

4.46

4.44

92.35

4.88

4.90

4.95

4.56

4.57

4.58

Nov, 11

Hull

392.9

387.6

383.6

291.364

373,237

358,296

304,776

308,845;

4.51

427,573

421,384

482,780

.Nov.

109.27

108.97

108.79

Total

sales

—

Other transactions initiated
Total purchases
Short

Total

1,852,430

1,463,990

All

1,878,350

1,034,720

671,710

614,480

96,200

43,800

49,000

1,030,670

691,550

528,180

313,170

1,126,870

735,350

577,180

406,270

1,306,790

505,390

196,330

186,090
1,141,580

983.360

1,131,770

Oct, 18

5,975,180

4,119,750

3,820,060

2,603,025

1,075,330

740,240

720,790

623,820

2,352,097
2,975.917

3,732,630

3,303.970

4,472,870

4,084,760

Oct

.Oct. 18

1,515,446

$72,896,620

2.162,292

1,633,505

10,673

8,473

6,092

1,638,843

2,153,819
$101,053,962

1,627,413
$74,081,521

681,860

567,610

209,830

681,860

567,610

646,800

461,570

DEPT.

1,354,310

902,850
19,287.560

18,003,370

20,190,410

18,848,000

♦Revised

figure,

1958' ** a«ftlD8t Jan- I.

pound.

one-half

farmland

cent

foods.

258

351

245

232

225

181

2S2

281

AGRICUL¬

Sept.

1$:

1_.

;

fresh

*118.6

118.8

160

*90.9

92.1

*109.6

110.3

193

103.8

105.4

163

190

239

217
194

232
142

482

244*

r___

^___

339

'159

483

264
■

484!

273

255 "

338

260,
272,
291-

174

166

175

210

FINANCING
U.

288

HOME

$995,170

$986,186

NONFARM

LOAN

BANK

companies

129,859

banks____

^__

^883,097!

124,950

475,771

491,460
164,862

169,183

432,37a

-378,221*
436,76*9

292,227

308.132

472,411

461372
$2,542,162

* *42,208.459>

$10,613,90(1

$19,12X299

$10330,300.

$288,009,000

$280.090t000t

$276,000,000:

276,665,90$

lending institutions

AND

278,475323

£_

GUARANTEED

310,316

*£

367,677"

SECURITIES

S, A.—Month of September:

;

purchases

—As of Sept.

Total face
at

50.1

126.1

;

280

$2,534,621

RECT

105.1

104.2

279

any

30 (OOQ's

amount

that

cunitted):

may

be outstanding

time__

125J

obligations

not

owned

274,411,983

the

90.5

109.0

211

163

U» S. GOVT. STATUTORY DEBT
LIMITATION

117.5

91.4

221

"220

eggs____'

Guaranteed

118.7

-Nov.

^includes 959,000 barrels of

77.169,000

INDEX

—

46.903.000
9,734.000*

*6,887,000

183

FARMERS

DEPT.

Total

14,204,060

-Nov.

■WDttrly Investment Plan,

BY
S.

*8,566,000

6,934,000

TREASURY MARKET TRANSACTIONS' IN DI-

-Nov.

All commodities other
than

*15.453,Q00

164.7'*

207

Miscellaneous

961,750

-Nov.

105,0.
-

8,758.000

;

Outstanding—
v
Total gross public

commodities

Farm products,
Processed foods—
Meats

5.579,000

94.2

manufac¬

■

Commodity GroupAll

7.414.000-

Insurance

100):

412,993,000

Mutual savings

13.242,310

26,164,650

844,630

9G.2-

129

ESTATE

24,810,340

"•

15.692.000

Net sales

^«

•

*6,342,000
*5,307,000

*150.1

Banks and trust companies^!

837,240

Oct. 18

•

....

*11,649,000
-

154.7

crops

and

AREAS

Net

—333

(1947-49

BOARD—Month of August (OOO's omitted):
Savings and loan associations.:
:

(SHARES):

SERIES —U.

—

REAL

2091830

512,170

companies,

Avge.=^100)—

576330

sales

LABOR

•.»

...

5,364,000

Individuals

576,230

427

280

1,114,394
$49,034,626

$78,194301

999
720

864

11,895.000.

viiw___i_"l_l'

(1947-49

vegetables,

Tobacco

30,134

3.279

432

individual

58^

."r--1-

Oil-bearing

1,144.528

.Oct. 18

*®TAL ROUND-LOT STOCK
SALES ON THE N. Y. STOCK
AND ROUND-LOT STOCK
TRANSACTIONS

WHOLESALE

r.___-22

grains and bay___
grains
:
Fruit _£___

$73,447,547

1,649,516

2,980

Potatoes

1,791,226

$73,873,406

2,140,798
$104,351,503

987

<a>

,6,531,000.

Wool

1,579,985

991

'.215

1,091

Pomtry

-Oct. 18

sales

£.-.2

Oct. 18

673

-Oct. 18

FOR ACCOUNT OF MEMBERS
Total round-lot salesShort sales

(a)

disclosure of figures for

Meat animals

Oct. 18

deaiers3

"73,1.8fy

247

Dairy products

——™

Round-lot purchases
by
Number of shares.

407.384

(a)

Feed,

"496,334-

42,609
131,451

5,236,750

shares—Total sales.

Y 230,548

94,348

Food

71,389

792

TURE— 1!>1<M914=40O—As

691,297

76.115.
;

105,756

All farm products

574,937

1,327,670

50,085

36,078

46,453

219,140

1'2

Cotton

1,604,220

466,925

86,947
r.

62,962,

____;

—

116,360

1,407,890

466^82

;•

_ii

to avoid

RECEIVED

NUMBER

148,410

6.312.080

Other sales

90,426.

•

goods

Commercial

-Oct. 18

Other

576,645

—Oct. 18

— SECURITIES EXCHANGE COMMISSION:
sales by dealers (customers'
purchases)—t
Number of shares.
Oct. 18
Dollar value

Total

PRICES

93,100

0ctt 18

sales

manufacturing
goods

815,470

——Oct, 18

323,270
-

69,370

103,404

-66,441

,cir___!

Crops

STOCK TRANSACTIONS
FOR ODD-LOT ACCOUNT OP ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK

Short

135.067.

;

209.2l3*;

78,441

bales)—'

Dfurable

—Oct. 18

Number

94;429,000

number of employees
turing industries—

2,375,810

—Oct. 18

Odd-lot purchases
by dealers (customers' sales)—
Number of orders—Customers'
total sales
Customers' short sales
Customers' other sales
—
Dollar value
_Z7
3
Round-lot sales by dealers—

*75^29.000

Estimated

1,899,500

Jet. 18

EX,CPAN,GE

81.569.000

91.901,000

•

manufacturing (production1 workers)1__22

2,409,850

Jet. 18

Odd-lot

94,564,000
47,(^9.000

shown

64,027,000

.96,931,000 ,*

AND PAYROLLS—U. 8. DEPT."♦ •;
LABOR—REVISED SERIES—Month of
September:.-•>
■f.:-', ■:
2.

2,798,190

—Oct. 18

sales

80,506,000

142.293

(a) Not

3,580,990

&
—

II——

ill i,715,0t0*

50,414,000

414,360

—Oct. 18

33,025,000
48,12j.OjQ

76,745,000;"

—1--

Employment

1,703,110

523,380

—Oct. 18

transactions for account of members—
purchases

Short

2,390,110

510,350

—

1131—
I.I~
I
~~
Z~7~~Z
ofFtheTloor—

—

:ii2.

Nondurable

round-lot

Total

2,542,650

782,800

floor—

sales

Other sales
Total sales

3.633,670

Other sales

49,061.000

.■

manufacturing _£
ji.
Payroll
indexes *'(194.7-49
Average=--=100)—
All manufacturing
Oct. 18

"I—

346,0<i2'

*418,191!

All

0ct. 18

purchases-

Short

504.250.

147,634

331,385

i_—

Nondurable- goods
indexes

109.55

MEM¬

5K2 Sa!63
Other sales

304,504

306,751

71,215

Durable .goods

Total purchases—

All

481,299

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered-

the

482.208

506,842

EMPLOYMENT

292,063

——NOV.

ACCOUNT

Jf-

*11

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949 AVERAGE —100-

(tops),

Shipped '

.NOV.

2,420.

72,268.000

Sept. 30
(tons)

Produced

Nov. 11

Percentage of activity—
r—~
<
Unfilled orders (tons) at end of.
period.

3,942-

;

Motesl^Grabbots, etc. (1,000 pounds)—' -V.
Stocks Sept. 302__2l___l_'___22
22___

4.38

•

3,493'

2,445

:_t;

4.47

•

••.;.

Shipped;

4.63

4.25

-3,603

5.10
1

4.44

324,112

.9:855

•

■

,2_

Stocks Sept. 30-i_—
Produced

4.25

317,807

Total sales
Other transactions initiated

•

Fiber'(1,000-lb.

4.43

(tons).

,9J9B5
3,937

4.25

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)

FOR

396.4

70,434.000

(tons)

—Nov. 11

——

—

1,969
7.662

PROD¬

Shipped

4.50

C.228*

8,347

4.003

Linters (running bales)—
***v
>(
f' Stocks' Sept. 30_2-__l_ll_2;:I___'___l___'
1
Produced
-___2_________122—1—■

-4.29

.Nov. 11

4.22

15,556.
*'■

1.980

3,639

Shipped

4.44

8.280

..1

...

;

MOODY'S COMMODITY INDEX,

SEED

(tots)

Produced

90.48

-96,315,000 "

•

Stocks

•'

———I——13——-I——Nov.'

Y YI4',625

;"2,438

:i.._T,___2_-_-_2-—

Meal—r.

Shipped

87.05

89.78

and

Hulls—

81.05

;87.99

Jov. 11

33,415;

10,080

2 ',.2^-

i_r

(tons) Sept. 30
Produced (tons)

88.81

Jov. 11

TRANSACTIONS

14-,444 I*.

Stocks

91.77

89.37

Cake

94.26

iov, 11

———„

—

GroupUtilities Group

(pounds)
Consumption (pounds

87.63

89.78

-Nov.

foreign crude

126.2
runs.

§Based

126.1
new

annual

capacity

Treasury

140,749,570 tons
since introduction o*

1957 basis of 133,459,150 tons.- tNumber of orders not
reported
tPrime Western Zinc sold on delivered
basis at centers where
freight from East St. Louis exceeds

■.

$43,270

8.372

Stocks':(pounds) Sept. 30_—

89.750c

94.56

jov. 11

■'

r-(-

33,232

i'4'-'.'

Refined Oil—

89.92

•'"7'; 't\ -u

>l .»98

>,'.2;."■'}

97.875c

Jov. 11

...

.-/h 8.344

26.000c

$43,217

■

at mills (tons)__'_,ii__2__
__2_
Crushed Ttons)
2.i'_21_2_l_^
Stocks (tons) Sept. 30___2_21i—

24.700c

89.55

•

$43,238

Received

24.700c

4.10

Total

24.700c

——,

BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds—

ROUND-LOT

_i2-----

COMMERCE—Month
>*-. •• • *. ■

Shipj)ed (pounds)

Average corporate.

Production

goods. 1"_1.;

4Stocks-(pounds) Sept. 30—_2___l____

13.300c

87.92

-129,886.

'•

Nov. 11

*•

•

Produced (pounds)

Group.

Group

•

10.000C

90.06

33,158

'•

10.500c

Nov. 11

129,855

COTTON

11.000c

9G.875c

-866,630

Crude Oil—

MOODY'S

Public

AND

10.500c

83.79

Industrials

23.325c

■

t1-""

RE-

Produced

—

BnaTZZ-Z——Z*

SEED

11.500c

87.90

—

Railroad

'"703,356

Y:£iYY£YZZJ~>i£.Z'-

2—ill:

11.000c

.—Nov. 11

—

Railroad~Group
Industrials

credit

11.000c

-——.

—

Group

633,242

809,160

,,.823,177

UCTS—DEPT.

—

Utilities

FEDERAL

;

consumer

—Nov,

corporate-

TIIE

•

lev.

——

Public

credit

11.500c

99c/o) at

—

Jov.

MOODY'S BOND PRICES DAILY AVERAGES:
U. 8. Government Bonds

Average

'939,015

OUTSTANDING—BOARD

Jov.

-—

Zinc

Straits

SYSTEM—REVISED SERIES—Esti-

September:

26.125c

$1,699,872'

409,106

1,008,199

•

;

Nov.
—

$1,348,121

613,073

Cot ton .-Sped— '

at—

(East St. Louis) at
Aluminum (primary pig.

$1,621,272

Nfuiinstaipient credit _2~
Singly payment loans22i,2'2iiiL2l_l._112il:':
Charge accounts 2l____-i22ii2ilL_li.-l._2

266

Nov;

Export refinery at
Lead (New York) at
Lead (St. Louis) at—
(delivered)

nvodernization
Personal loans Y__

44,€90,851479.683,897(
,

nimucipal_l„__„_2i-2---—

CREDIT

$524374,748
'

.185,022

Other

130

■/

-;r

•

EN¬

—

Month

—

■

Instalmcnt

(E. & M. J. QUOTATIONS):

refinery

21.817,951

95.006,056

103,987,432

^'--2'*'

Total consumer credit_i2.

Electrolytic copper—
Domestic

-42,319.363.

531,335,857

mated short and intermediate terms credit
in millions as of Sept.
30::?,

432,000

145

CONSTRUCTION

GOVERNORS

SERVE

9,866,000

Nov.

(per gross ton)
Scrap steel (per gross ton)
METAL PRICES

•

-'•Service

Pig iron

tZinc

■

DUN A

—

COMPOSITE PRICES:
steel (per lb.)

AGE

53,242,014t

140

Nov.
n^-r-l2(311f000

(COMMERCIAL AND

BRADSTREET, INC.

and

Automobile
137

53,445,172

Repairs and

output (in 000 kwh.)

FAILURES

40,918,850

construction

CONSUMER
,

ELECTRIC INSTITUTE:

Electric

-76.106,620

32,254,320
118482,908

531,936,121

NEWS-RECORD

construction

Federal

70,588,000

8,435,000

386,000

;

______

ENGINEERING

Public

$147,911,000

SALES INDEX—FEDERAL RESERVE
AVERAGE = 100
Nov.

DEPARTMENT STORE

IRON

$353,104,000

—Nov.
—Nov.

—

Pennsylvania anthracite (tons)-

EDISON

•81,057,915

$32^)99,089
r

States—__-u__Y_I_1_________Ly$585;381,293 $635,323,289

City

TotaRU.coustruction_.i___£Y!;___________

590,734

$272,924,000

Nov.

—

———

lignite

and

110,880,048

23.985,481

•V' October (000's omitted):

(U. S. BUREAU OF MINES):

coal

122,725,740

44,101.927

Outside New York City

713,994

"f-.

$221,470,000

——Nov.

construction
and municipal

OUTPUT

122,034,982

117,683,636

—

Total United
New

State

COAL

39,559,602

.115,980.207

—

148,524,868

Mountain

'•

NOV.

construction

Private

822,667,711

109,842,861

_____

Pa cific-—-

ENGINEERING

—

construction

Ago

42,192,498
104,068.383

South ,Central,

NEWS-RECORD:
U.

Year

Month

$27,526,300
__

Central

Private

Total

;

GINEERING
-

Revenue

ENGINEERING

Atlantic

West Central

ASSOCIATION OF AMERIOAN RAILROADS:

CIVIL

CITIES—Month
~:j. •'
'

England

6,711,635

6,918,635

DUN

—

of that date^

terminals, in transit, in pipe lines-

Stocks at refineries, bulk
Kerosene

New

VALUATION

INC.—215

Middle; Atlantic———————

)ct. 31

(bbls.)
(bbls.)

output

1,990,000

6,911,385

«—

Distillate fuel oil output

2,003,000

PERMIT

BRADSTREET,
of September:

Jet. 31
—)ct. 31

output (bbls.)
fuel

BUILDING

either for th*

are as

Month

77.7

Oct. 31

gallons each)
Crude runs to stills—daily average (bbls.)
Gasoline output (bbls.)
42

Residual

Ago

74.2

2,011,000

of quotations,

cases

are

Latest

(bbls. or

average

or,

Year

Ago

74.5

§2,029,000

-Nov. 16

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily

Kerosene

Month

production and other figures for tin

cover

Dates shown in first column

that date,

and castings

ingots

month available.

month ended

Week

§75.2

-NOV. 16

cent capacity)

(per

Equivalent to—

Week

STEEL INSTITUTE:

AMERICAN IRON AND

following statistical tabulations

latest week

Thursday, November 13, 1958

117,839

Total gross, public debt and guaranteed
-obligations
Deduct—other outstanding public debt obligatioas not subject to debt- limitation.
Grand

;

Balance
under

total outstanding.
face amouat of obligaWons,
above

authority.

issuable

108,478

114,563:

$276,783,745

$278,584,011

427362

428,269

441,812-

$276,356,382

$278,t55,1748

$274084,734.

$274,826.547'

11,643,617

1,844057

915,265

i-lj.

The Commercial and Financial Chronicle

Number 5794

188

"Volume

they .will be seeking to do a real¬
istic job on this one.
■
;;

The market has not been in

Amott, Baker Appoints

a re¬

Suburban Company brought out
In the

meantime
backing

there

iip~bf

has been some
offerings.

bers^ of the New York Stock Ex¬

new

change,

Groups which brought out the
Puget Sound Power & Light Co.'s
recent

•

The

Treasury's"' decision jtqr fir
immediate: * cash ■ needs

its

nance

Lund

But

those .whose

funds, it

job

raise

to be doubly so
who-' are
charged

seems

those

in¬
vesting ."other people's money."
the

There, is
the

responsibility

level

filling in the

has

Public

Service

Co.'s

credit'--bulge

rights

and

off

long

how

conditions

wise.: do

not

out

He was, from

and

Exchange

With Emanuel, Deetjen

change,
Lynch
their

for them.

market

added fly in the ointment,

the overwhelming
Democrats in the

victory " of "the
elec¬

national

with

million

15-year,

next week,

was

the

'offering are:
Co.; Freeman
Co.; and McMaster Hutchinson

DIVIDEND

& Co.

NOTICES

DIVIDEND

J. I. Case Company

NOTICES

(Incorporated)

1958
the 1%
share on
Second Preferred stock of this Com¬
been declared payable January 2,
Wis., November 10,
of $1.75
per
share

Racine,
A

dividend

Preferred

stock

the 6l/2e/f>
1959

nas

11.375

and

cents

per

of record at the close of busi¬
12t
1958.
L.
T.
NEWMAN. Secretary,

to holders
December

Underwriting Department of Carl
M. Loeb; Rhodes & Co.
Vice-Presi¬

dent will include continued super¬

vision' of

any

the

ment^ ahd

NATIONAL UNION

Syndicate

Depart¬
administrative

general

Dividend No.
has

Levian

Mr.

been

with

the
A

corporation since 1942. He has had
extensive

experience in

tions^

broker?-in

York,

PITTSBURGH, PA.

148th DIVIDEND DECLARATION
1958"
M. B.

Brooklyn.

LOEB,

President

The Board of Directors of this

N. Y.

dend of

member

the

Fifty Cents (504)

capital stock. This eosh diVt-

dend will be

York,'a member of the National

com¬

today declared'a cash divi¬

pany

of; the Real Estate Board of New

giving them a top-heavy
Meantirne the pace of tax ex¬
both houses, adds to the
empt flotations is running at ah
woes, of people with funds to' in¬
average* annual rate of some $7:8
vest'. *
7 V!-;•''> V C •' '■'&
billibn, "■ the ^ Investment Bankers
...4, It raises thev question again of Association of America reports,
whether we face another period against a $7 billion total last year.

New

COMPANY
OF

IKS

the real

grip

115

Dividend

FIRE INSURANCE

^hu*CTU»HO coopasv. we-

work.

of $140- -estate securities' field, both before
4^4% bonds and since
joining Amott, Baker &
announced by
Co.,
is
a
licensed
real
estate

secured»bY/24

R. W. Pressprich &

associated with the

Mr. Lund's duties

Riigene R. Black, President.

Associates

with

firm.

offering

associated

now

The issue ia to-be

diesel-electric roacT switching Id*
comotives estimated' to cost

ness

was

mem¬

of the Interstate

Commerce Commission.

that J. Paul $3,508,980.

announced
is

Halsey, Stuart' $ Co. Ine; and '
are offering today (190v{
13) an issue oft $2,610,060 Illinois
Central
RR.
4%%
equipment
trust certificate maturing- settti*
annually June 1> 195$ to Bfefci
1973; inclusive:
The certificates are scaled to
yield from 3.25% to 4:30%; ac¬
cording to maturity. Issuance and
sale of the certificates are su^«d
associates

to authorization

120

bers of the New York Stock Ex¬

pany

Mr. Lund

Co.,

Broadway, New York City,

business properties that

joining Amott, Baker & Co.,

Deetjen: &

Emanuel,

ho-wever,

its

has

Philadelphia, Detroit,. Washing¬

to/

restraining influence on the World
those
who Bank and tax exempt borrowers,
handle the portfolios of trusts and
judging by the pace of operations
pension funds among other insti¬ of these facets of the market.
v
tutions certainly have their work
The World Bank will be in the
cut

Co.

ton, D. C. and Waterbury, Conn.

government service and just prior

market-

to exert

appear

experience in

ihad been seized by the Yugoslav
Government'. / After leaving
the

circum¬

the

extensive

j American

World Bank Loan
Disturbed4

had

Commission; the
[last 12 years as Associate Director
or
Director of the Trading and
Exchange [Division. During 1954
land,1955 he served the State De¬
partment in Yugoslavia appraising
:

offering involving 2,478,264 shares

attorney and has

the securities field.

tucky Utilities Co.'s rights offer of

eral

11933 to 1955 with the Securities

Ken¬

gaps are

Mr/Lund is

of its Syndicate Department
sihce";June 1957. • Previously; he

206,441) shares to its stockholders
set for' Monday, followed by Gen¬

of telling just

way

current

would" endure.

stances,

Baker

and maintains four branch offices

ager

Matter, judging from their, of common stock on Tuesday. .; v.
conversations, are', really
iri^ a
Sandwiched in between is State
quandary. They find the spectre Loan & Finance
Corp.'s offering,
of "inflation"' as their chief con¬
by the negotiated route, / of $10
cern.
Trying to figure out how to million
of
debentures
due
on
invest funds put into their keeping
Tuesday. '
■
' '■
is causing many sleepless nights.

will

Amott,

principal office in New York City
in

The

Vice-

been with the corporation as Man¬

where

corporation in addition to

tion.-" V

■

of the

„

•with

been-elected

formerly
Assistant;Secretary):has been
elected Secretary for the corpora¬

through the sale of short - term
J
The Week Ahead ~
bills was of little help to the in¬
If it weren't for several equity
vestment market generally from; a
offerings being made on "rights,"
standpoint of promoting stability.
the; approaching week would be a
On the contrary, it-tended to sug¬
rather -dull period for underwrit¬
gest: that even
the
top - flight
ers and dealers.
Once the Pacific
monetary authorities are gun-shy
Telephone, debentures are out of
at the moment:
•'
'Q'
the way, things flatten out.
And
if that's
the case with

with1

President and director and Allan

that of Columbia Gas Systems, are
stilt striving to work off remain¬

ing balances of those issues.

continue

H. Levian (a director and

issue, "and* also

debenture

will

Levian

his other administrative duties.

that Anthon H.

announce

has

Society of Real Estate Ap¬

supervise the real estate activities

Amott, Baker & Co., Inc., 150
Broadway, New York City, mem¬

its issue.several weeks ago.

State

praisers.
Mr.

Lund & Levian

ceptive mood since the Cincinnati

(2023)

paid December 22,

1958 tostockholdersofrecord at the

Association of Real Estate Boards
and

member of the

New

DREWRYS

York

really
aggressive
Federal
and deficit... financing,
things which do not sit. well with
of

fixed-term investors.

;

DIVIDEND

NOTICES

DIVIDEND

spending

NOTICES

close of business

A quarterly dividend! of forty (40)/
share for the fourth quarter'

Treasurer

November 4, 1958

cents per

of 1958 has been declared on the com-

«■'

••••••••••••

••••••••••

mon

DecemberT; 1950.

■

•

stock, payable December 10,1958
of record at the close

to stockholders

Face Real Poser

of business

:fv
S

Investment

banking

syndicates

preparing to bid for Pacific Tele¬
phone & Telegraph Corp. 's:., $80
million

new

debentures

November 24, 1958.

Drawry* Umilttf V. S. A. Inc.

PHELPS DODGE

Saulh Band, Indiana v

T. B. JEANNKRKT,

CORPORATION

Secretary and Treasurer

CORPORATION

•

Tuesday will be up against a real

DIVIDEND

problem. There is no question that

#.
W

w
w.

Common Dividend

No. 156

NOTICE

$
•ur

The Board of Directors has
this day declared a quarterly
dividend,of 25<jt per share on
the Common Stock, payable
January 2, 1959, to shareholders of record December

•
•

A dividend of

the

stock of this
has been

62Vi$

per
•

common

•

Corporation

15,

1958, to

December

stockholders of record at

Novem¬

•

ber 28,

•

November

The Board of Directors has
a

per

the

Vice President

•

10,

1959

payable
to*

stock*

of record November' 1%

ntaking

1958,

declared
{

the capital stock

Corporation,

lars ($3.00)

dividends

total

1958 of three"
per

$12.50

par

dot-

value

share.

the' Common Stock of

Company, payable on December

M. W.

1, 1958 to stockholders of record al

ASM ANN

November 5, 1958

of >. this
holders

regular quarterly dividend of 60c

the

fourth-quarter divi¬

of record Jan¬

and Secretary

1958

COMPANY

of Directors has'

of Seventy-five Cents (754)

declared in

16, 1959.

C. Allan Fee,

December

145th Common Dividend

uary

AND LIGHT

DAYTON, OHIO

shareholders

1958.

Vice President

| per

terly dividend of 37Vi cents
on the $25 par value Cumulative Preferred Stock, payable February 2, 1959, to

•

close of business

dend

12, 1958, and a regular quar-

•

declared payable

declared

THE DAYTON POWER

Board

The

close of business

November

URQUHART,
Treasurer.

18, 1958.

& Treasurer

November 6, 1958

GEORGE SELLERS, Secretary

»»•••i

November 7, 1958

BAKING: COMPANY

CONTINENTAL
-

Preferred" Dividend No; AO

The Board of Directors has

declared/this day

$1.37^/2

close of

per

MFG. CO.——

quarterly dividend

the outstanding $5.50 dividend Preferred
Stock, payable January 1, 1959, to stockholders of record at the

ALUS-CHALMERS

5, *1958.

quarterly

cents

COMMON STOCK DIV»EN»
95th Consecutive

COMMON DIVIDEND

business December

SEflBORRD

(25c)

dividend
per

No. 138

✓

twenty-five

share on the common
has been declared

Quarterly Payment

The7 Boa rd: of Di rectors of

Seaboard Finance Company

clared

de¬

regular quarterly divi¬

stock of this Company

Contmen

dividend,
share

for
the

payable December 22, 1958 to share¬
holders of record at the close of business

DiyM No. 55

regular quarterly
the fourth quarter of the year 1958, of 55y per
outstanding Common Stock, payable December 23,

The Board of Directors

has declared this day a

1958,

holders of record

of such stock at the close

business December
The stock
not

1958.

transfer books will

closed.

dend of 25 cents a share on Com*
mon

November 20, 1958.
4.08% PREFERRED

DIVIDEND No. 18

regular

Transfer books will not
WILLIAM FISHfR
TREASURER

November

12,

1958

quarterly dividend of one
dollar and two cents ($1.02) per share
on the 4.08% Cumulative Convertible
Preferred Stock of this Company has
been declared,
payable December 5,
1958 to shareholders of record at the
close of business November 21, 1958.

be closed.

A. D. Dennis,
Secretary

November 5, 1958

Mk
of record

Stock. Payable January

1959, to stockholders
December 18, 1958.

PREFERRED STOCK DIVIDEND
The" directors

regular

also > declared

quarterly dividends of
on
the $4.75 Sinking

$1.18%
Fund Preferred Stodc, $1.25 on

the $5.00 Sinking Fund Preferred

iJhe $5.00 Convert¬
Stock, Series A
and B, all payable January" 10,
1959, to stockholders of record

Stock, $1.25
ible

Preferred

December 18.1958.

•...

EDWARD L. JORK80W,
Secretary

October 22,1958

43 '

The Commercial and Financial Chronicle

(2024)

Thursday, November 13,1958"

BUSINESS BUZZ
on.

Behind-the-Scene Interpretations
fr«o the Nation'*

business

insurance

Therefore, it is working in close

C. —The

WASHINGTON, D.
life

Capital

It is

serious

Federal

The

number had in¬
1,246.
There, were
300 cities in which home offices,
life

1942 law which would

since
As

re¬

end of World War II.

paid

income

invested

years

their
there

taxes

earnings.

Yet,

ha-s been pro and con

debate in

This has proved

and
Means
start hearings

will

surance

life

From

appears

taxation.

17)

in¬

The

question is:

And what will it

much?

dent

The

how

business
cient

tion

immediate

the

panies. The big question before
Congress is a matter of devising
an equitable formula.

age

•'

The

companies

ation,

but

sharp

increase.

will

they

oppose

the

1957, there

stock
ls

were

companies,

1,081 (87%)
165, oi¬

Under the Constitution all tax

and

% mutual companies.

House

By • the
functions,

nature of its
the
life
insurance
business is quite complex. The
.stock
and
mutual
companies
have debated the question of a
proper
tax formula, but they
Rave not

very

the

The

make

inquiry into

income tax formula.

involve

total

reaching

what

income

known

formula.

the

This

also

may

the

Department of Treasury offi¬
House

Committee

with

Ways
have

officials

companies

fort to arrive at

been

apply equitably
to

tual

and

7' j

policyholders
stock

companies

to the various companies.

been tough,

but

there

the

and

mutual

course,

If the stock

the

mutual

fair

not

have

com-

greater

shifted

burden

companies
<

for

stable

formula

that

can

and

It has

hope

depended

year

upon

year

after

for the companies to com¬

pute
know

their

taxes.

where

The

they

how much to put

need

stand,

can

dollar I

get to pay off the obli¬
approved

various

insurance

regulating

question

com¬

if the

However, because of the rapid

other segments

Senator

and business

exists

believe

there

now

"no man's land" where

off

the'O'Mahoney antitrust Sub¬
committee developed what ap¬

their

three

were

time

one

pools

Underwriting,
reduced

aviation

and-

(

■

but

■

marine

insurance

Then

with

the

comparison

stock.

in equities
Therefore,

over any

life

the

companies

vested assets in

•

before

month.

Federal

largest

ocean

areas

corporate

were

1957

was

taxes.
new

in¬

3.75%

The

two

investment

securities

and

finally

health

[Thip column is intended to

insurance,

next spring it

movic—International

Reconstruction

1818

ment,

and

for

Bank

Develop¬

W.,

Street,

Demand for Currency Relative to
Total

Money

Supply

Phillip

—

Cagan—National Bureau of Eco¬
261 Madi¬
son Avenue, New York 16, N. Y.

nomic Research, Inc.,

(paper), 75 cents.

Freeman, November 1958 with ar¬
ticles on Regulatory Taxation,
Nature of Socialistic Disaster;
How to Increase Tax Revenue;
Myth of Federal Aid; Nature's
Laws and Man's Laws;
What

Right to Strike?; etc.—Founda¬
tion for Economic
Education,
Inc., Irvington-on-Hudson, N. Y.
—paper—50c.
Investment

Companies—A

Bibli¬

ography — Business Literature,
Public Library of Newark, New
Business
Library,
34
Street, Newark, N. J.
(paper), 25 cents.

Jersey,

Commerce

Meeting California's Water Needs

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.]

will

start probing the life insurance

companies.

fairs

Institute, 312 Pennsylvania
Washington

Avenue, Southeast,

3, D. C., 250.
Raw Materials: A Study of Amer¬

ican

Policy—Percy W. Bidwell

—Council

mortgages.

mail order insurance,
and

International

—Dewey Anderson—Public Af¬

it will become concerned

accident
and

this

their total assets,
common

percent

small

The net rate of interest earned

insurance
it has been

funds,

large company that issues stock.

hearings

do not exercise control

there

over

they probably would have no
difficulty of showing that they

travel

to two.

controls

of the economy

generally.

investing only

During the hearings in August

writing

any

Life companies are limited to

lack of adequate state

exercising

investments,

are

its

billions

since World War II has lead the

The

companies, through these

many

growth of insurance companies

resume

"influence."

Subcommittee wants to find out

East

Foreign Relations,

68th

Street, New York

21, N. Y.—$5.95.

We have

prepared

Report

comparing and evaluating

Congress.

Stndebaker-Packard
•

O'Mahoney,

Botany Mills

Carl Marks

20 BROAD STREET

Democrat
a

♦

request

NEW YORK 5, N. Y.

TEL: HANOVER 2-0050

TELETYPE NY 1-971

Investment Securities

II Post Offics So tare,

of Wy¬

long series

Copies

•

FOREIGN SECURITIES SPECIALISTS

Senator Joseph C.

oming, began

P.p. Inc

aside for taxes,

Under Antitrust-Scrutiny
In August

...

and

the shoe factory.

gations

the

Growth

war

Indebtedness—Dragoslav Avra-

mu¬

Treasury Department
every

laws

Certainly there is acute need

just like the cement company or

badly in need of

securities, and mortgages

homes,
office
buildings,
factories, farms, etc. Another
angle is expected to involve the

Under

7 The Subcommittee, expects to

companies, or vice

insurance

Out.
The

present

<•

to;

and belief that it will be worked

this

will be hurt in the long run.

ef¬

formula that

fairly

investments

Federal

and

year.

Debt Servicing Capacity and Post¬

life

would

stock

seek
of

versa,

and

that

simple.

panics

the

Insurance

companies alike.
is not

insurance.

insurance.
...

state

local,

involve

expected

are

the

formula

equitable

consider

compromise of the two
basis for the tax bill.

the

from

types

investment ramifications

The

peared to it to be monopolistic
tendencies in aviation under¬

and

mighty howl will
policyholders if
Congress' should come up with
arise

The hear¬

working

con¬

tax formula.

However,

the

combination of premium and
investment income.
The com¬

Means

Need Equitable Formula

cials and

set

angles of
companies
in

phases

insurance

the

other things,

among

mitteemen

all

had

and Federal regulation.

Subcommittee will

further

ings will,

arid

is the House
Means
Committee.

place

committee

sider

been in agreement on

Mills

proper

Ways

the question of the tax burden.
The

originate in the
Representatives and

there

Subcommittee will make

there is

must

measures

conditions

not

monopolistic tendencies.

panies.

life insurance owner¬
ship per family rose from $7,600 to $8,300 in the year. This 7
was
twice the average family
protection 10 years ago.

^companies in the United States

states have certain prerogatives

average

ous

the

109,000,000 American life in¬
policyholders had some
kind of protection in 1957. The

1,346

today's

further inquiries into the vari¬

investing want coverfor their families. A total
are

surance

"a reasonable increase," in tax¬

under

The

expecting

are

News

Washington 25, D. C.—$5.

Investment Control

ahead. Nevertheless, the people
who

insurance

the

is adequate and suffi¬

whether

and
been

years

stock companies and what will
the rate
be on mutual
com¬

'others.
of his

Subcommittee

Antitrust

supervision

stand¬

among
purpose

1959 inquiry into
the life companies will involve
the size and growth and invest¬
ment practices of the companies.
The companies have more than
$100 billion invested.
changed, the

to determine whether state

was

conditions and threatened infla- '

primary

Senate

investment

marine,

ocean

schedule

the

Unless

life insurance, acci¬
health, aviation and

and

popular.

point, life insurance is not re¬
garded as a good buy on today's
market due to the inflationary

certain that taxation will be in-*
creased.

hearings

Coverage Doubled

Ways

(Nov.

Mills of

Chairman Wilbur D.

Monday

come

Economic

Service—Monthly publication of

ago.

years

6, D. C. (cloth), $4.95,

— Press
Service, Economic News Serv¬
ice, Ul. 28, rijna No. 13, Prague
1,
Czechoslovakia,
$3.00 per

newly wrapped packages
merchandising plans,, like
the family plan policy, covering
all members in a single policy:

Hearings Approach

Committee

have

Associates,
Inc.,
Street, N. W., Washing¬

economic developments

and

have paid their share.

House

total

companies

Ander¬

—

Kramer

Czechoslovakia

salesmen."

with

Congress whether the companies

the

times

The

"I'm afraid he's not exactly partial to

the life
companies was one-fifth more
than the previous year and three

have

from

the

1722

from

bought

ton

The $67

life insurance.

new

billion

Controlled?

Harold G. Moulton

son

the half tril¬
lion mark last year. American
families bought a record amount

companies

insurance

through

Information

Can

this country passed

26, and New York 22.
Life

ices, 45 Rockefeller Plaza, New
York 20, N. Y.—paper.

—

place with 39 home offices. Chi¬
and Philadelphia each had

British Trade Publica¬

tions—British Information Serv¬

ownership

insurance

Life

cago

down

tory of

Britain—Direc¬

Great

Insurance, "they certainly
hope that it will not double."

with 64, and Fort Worth was
tied with New Orleans for third

tions

Life

sult, big, bustling Houston, with
more
than
1,000,000
people,
ranked
No. 2
in the country

Publica¬

Business and Specialized

reasonable tax bill," said
official of the Institute of

pect

British

—

York 20, N. Y.

(annual subscription), 45 cents.

$470,-

"While the companies do ex¬

the

1958

feller Plaza, New

jump the

approximately

"-','77

Publications

Information Service, 45 Rocke¬

000,000.

panies in Texas has been little
sensational

bill

tax

'7%

September,

for

Detroit 2, Mich.

Government

British

formula, the so-called Mills
expire and the com¬
panies would be taxed under a

companies were located.

Center Building,
—paper.

New

Association,

ufacturers

law would

Dallas, with 135 home offices
located there, led all cities by
far.
The organization of com¬
short

ON RIGHT.

tax

Man¬

1958 Edition—Automobile

THROUGH DOOR

insurance

life

the

that

Figures:

and

Facts

Automobile

companies paid $290,000,000 in.
taxes' during the last fiscal year.
Unless Congress approves a new

of last year the

10, N. Y., $10.00.

SALESMEN

figures

available

last

show

insurance companies in the
United States, but by the middle
creased

WILL ENTER

life

1950 there were 651

brary—Ronald Press Company,
East 26th Street, New York

before
give the de¬

appear

§290 to §470 Million?

From

Life Insurance show that at the
fcnd

Vice President

official position.

partment's

Institute

the

Records

committee

the

it faces a
problem.

tax

scheduled

condition
remain so

prosperous

Assignment of Income — Don J.
Sum ma—Tax Practitioners' Li¬

Executive

Committee. Secretary Anderson

tinuing its phenomenal growth.
and appears likely to
for- some time, but

House

the

with

cooperation

con¬

Telephone'
HUbbard 2-1990

Boston 9, Mats.
Teletype
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