Full text of Commercial and Financial Chronicle : November 19, 1959, Vol. 190, No. 5900

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X

The COMMERCIAL

ESTABLISHED

and
FINANCIAL

18.ift

Reg. U. S. Pat. Office

Volume 190

Number 5900

New York 7, N.

Y., Thursday, November 19, 1959

AS WE SEE IT

Editorial

At least this much

be said

can

"permanent solution" of

our

for the

It

turns

possible

parity formula based on
ago." Unfortunately it is not

determine

to

own

to market
prices
parity concept, and hence whether the whole absurd
parity principle is being discarded or whether we
merely have a turning from the base period of the old
one.

By Dr. Philip M. Hanger,* Professor and Chairman
of the

current

Prominent

the whole concept of
"parity," whether
or to income, has never had a
leg to
stand on and the sooner that fact
is widely understood
and accepted the better for us all.
The inference would
appear to be - warranted from what is now said
that,
whatever the methods of
determining the amount of'
subsidies paid to the
farmer, the amount per unit of
much

to

we

out

in

considerably lower—and

it

as

more

than

"megalopolises"

a

1965;
A

for this

and

differential

mulated,

and

U. S.

Public

At

means

tion

at

the

million
the

the

the

lower

adding

of

lower

at

to

limit,

as

potential

undertaking in

afforded

a

encing

is

actual

and

pect

starting

1930s

chemical

b/nk

yojtk

STATE

MUNICIPAL

and

BONDS

ible

in

actual

This

in the

accept

1930s, be¬
in evi¬

France,

nations.

of events has belied the
of the 1930s. World War II and its
postwar
war

course

aftermath has drastically altered the

present

and

the

growth.

We

have

prospect

in national population
experienced a major boom in
birth rates, unanticipated either in

marriage and
magnitude or duration.

In consequence, the post¬
political and social climate has
only stimulated great economic growth in
the short run but has also
(Continued on page 28)

cold-war

war,
not

Underwriters and distributors of

SEC and

STATE,

MUNICIPAL

32.

PUBLIC

HOUSING

BONDS

AND

on

page

&

Co.

623 So. Hope Street, Los
Angeles

17,

AND

AGENCY

NOTES

New York 15

•

THE FIRST NATIONAL CITY BANK

Burnham

and

Company

MEMBERS NEW YORK AND AMERICAN STOCK EXCHANGES

/

15 BROAD STREET, NEW YORK 5. N.Y.
CABLE: COBURNHAM

•

San

OF NEW YORK

Inquiries Invited

Teletype: NY 1-708

New

York

Correspondent—Pershing

Active Markets Maintained
To Dealers, Banks and Brokers

&

Development (World Bank)
TIIE

Manhattan
BANK

Co.

$250,000

New York Stock Exchange

American

Stock

PROVINCE OF SASKATCHEWAN

canadian

3%%

1832

Members

Investment

securities

Due

BROAD

CANADIAN

NEW YORK 4, N. Y.

DIRECT

WIRES TO

•

PERTH AMBOY

Goodbody
2 BROADWAY

June

1,

United

To

UlunicipalBonds
FOR

1967

States

CALIFORNIA'S
CIVIC

Dollars

IMPROVEMENT

93.75

yield 4.75%

DEPARTMENT

MONTREAL AND TORONTO

&

Co.

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

in

Debentures

Price

Commission Orders Executed On All
Canadian Exchanges

Exchange

STREET

Payable

Block Inquiries Invited

Teletype NY 1-2270

25




International Bank for Reconstruction

and

Net

ESTABLISHED

DALLAS

and

Chase

Southern

California Securities

Bond Dept.

T. L.Watson & Co.

COMPANY

on

Mortgage Association

Marine Bonds

HAnover 2-6000

Distributor

goiltfuVCAt

Exchange

United States Government Insured Merchant

Diego, Santa Ana, Santa Monica

_

Dl 4-1400

TELETYPE NY t-2262

Cooperatives

Federal National

Exchange

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

Dealer

Securities

Banks for

Associate Member American Stock

DEALERS

•

Federal Land Banks
Federal Intermediate Credit Banks
Federal Home Loan Banks

Members New York Stock Exchange
Members Pacific Coast

company

30 Broad Street

FIRST

million.

in prospect. This
pros¬

was

to

other Western
the

and cold

Lester, Ryons

UNDERWRITERS

BROKERS

BOND DEPARTMENT

Underwriter

165

concerned about the economic and busi¬

was

California

trust

population of

of Securities of

Municipal

HAnover 2-/3700

new

experi¬

Dealers in and Distributors

Securities
telephone:

are

implications of a stationary or declining popu¬
lation, and was reading its future as a "mature
economy" in terms of the events already discern¬

Housing,

State and

S.

difficult

and investors in corporate

in Registration" Section

we

course, with the
national growth

of

ness

many

persons.

"Securities

rate

Sweden, and the United Kingdom. The U. S. in the

Japan;

registered with the

contrast, of

it was consistent with that
already
dence in other Western
countries, notably

outlook

our

U.

not

was

By July, 1958, the population
the United
States, at 174
million, had increased by 23
million over the 1950 census figure of 151 million.
Most of the anticipated population
growth between
1950 and 1980, therefore, still lies ahead.
Between
1958 and 1980, the U. S. Bureau of Census
projec¬
tions point to an increase of from 57 million to

now

sharp

prospective

cause

it

of

of issues

million persons in the
30-year span.

was

But

complete picture

in

maximum

generation!

REGISTRATION—Underwriters, dealers

are

109

lation and then decline

limit,

as in all of Japan and
United Kingdom combined
—all in less than one human

million

at

likely to be achieved by the end of the
century, after which a period of stationary popu¬

the

99

birth rate above current
level. If the
the United States should
remain

level

during the depression 1930s. Population
projections
'30s, based on the long time secular decline
rate of growth, and
unduly influenced by the
then prevalent
marriage and birth rates, indicated

people

Prof. P. M. Hauser

level

in

popula¬
States as

United

as¬

the

of the

the

many people as in all of
at
the upper

/

wartime

The dramatic population
growth

upper

limit

of

of

crease

opportunities.

a

limit.

securities

Government,

this

figure

122

the

throughout the period, then, by
population of 260 million is indicated. Under
assumption, there would be a population in¬

ing

Americans

"permanent" program that is being for¬
hence can not be
(Continued on page 28)

SECURITIES NOW IN

growth

to

a

1950 and 1980

and

much lower cost.

/

economic

rate

current

1980,

a

we shall be add¬
to the population of the
United States some 80 million

A Permanent Solution
a

output shaped for

the

is the prospect to which the
economy of the
United States must be
geared by 1980. These pro¬
jections of the U. S. Bureau of the Census indicate
that in the 30 years between

producers supply

is

into

over

cans

crop or
how much of it he
may bring to market than there is
that we should fix the hours of
operations and the output
of the steel
industry that may be brought to the market.
The practice and the
program are utterly alien to our
traditions and are without the
slightest warrant in eco¬
nomics. Natural forces in a free
economy can control
such matters with
infinitely more wisdom than any gov¬
ernment, any set of politicians or any number of econo¬
mists could
possibly hope to achieve, "and determine them
in such manner that the more
efficient

But this

sees

spilling

population of 231 million to 273 million Ameri¬

this, too, is in its favor. There is no
why we should undertake to tell the farmer
how many acres he
may plant to this or that

a

increased in
birth

population growing faster at its extremes than in the
inter¬
range;
marked household formation increase in

goes

and hence at

remainder

mediate

more reason

the country,

the

(1955-57)

a

generation with most of the growth

and

level

(1942-44) by 1965 to 1970, and then remain at such
level to 1980. The
upper figure assumes a 10%

the

American economy must
population growth between 231-270 million

exurbia and interurbia. Dr. Hauser

Acreage controls and marketing quotas also appear
be discarded in the
thinking of the Administration.

So far

little

a

in

be thankful.

may

sociologist submits

be geared for a

applied to prices

come

The lower projected
figure is based on the
sumption that the .birth rate will decline from

Department of Sociology, University
of Chicago, III.

Of course,

output will

Copy

Our Population Growth

with

certainty whether the Ad¬
"realistic" support
program "related
in recent years" is to carry its own

ministration's

a

a

scornful eye upon "an obsolete
a half
century

conditions of

Cents

Implications of

Administration's

farm problem:

Price 50

1

NEW YORK

NORTH LA SALLE ST.

CHICAGO

Dominion Securities
Grporatiotj
Associate

40

Member of American

Stock

Exch.

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

MUNICIPAL BOND

Bank

of

America

N. T. A S. A.
San Francisco

J

DEPARTMENT

Los Ange/es

A

and Financial Chronicle

The Commercial

2

Thursday, November 19, 1959

..

.

(2094)

If it's Over-the-Counter

in the investment

You

be

can

PER AI D

'

*

*

,

Experience

Exchanges and American

Stock

Stock

Issues

Hanseatic
1920

4

120 Broadway,
WOrth 4-2300
BOSTON

•

PHILADELPHIA

•

Private

time

since,

rethink

New York 5

out

Teletype NY 1-40

starts.

interim indus¬
average

SOLD

2 3 0

Gerald S. Colby

0,1 it i s
difficult to understand how

I

that

could have been a loser even once.
The record is

COMPANY

agement and labor in the carrier
industry early in 1960—but in this

recounted not for

of setting

the

sake

the

making

of

oneVhoTce

one

security for all

either

impossible,

or

easy,

depending

on

of

if

1959

November

in

assignment

MAILED

REQUEST

readers

ridiculously

R.gks beeome

M3REUHD 8 CO.

quality, longest record
and yield, and greatest
growth potential compatible with
the trend of the economy-for
ultimate profit commensurate with

the highest
of earnings

Members

Midwest Stock Exchange
Detroit

Stock

Exchange

Penobscot Building

DETROIT 26, MICH.

DE 75
Bay City, Mich.

WOodward 2-3855
Office

Branch

—

m>I am
i!?™
f'n
going to
cense

wMm 2

for

t.wa

imie

.

take

£

t

leor

reason,
,
, ?

li

-

wWch

{J®1®1

and

orphans, though

forego immelong-tax term

accounts willing to

1959-60

The

unlisted securities,

standard guide to
is

now

off the press!

both

to

of Over-TheHandbook, the

Edition

Securities

Counter

Indispensable

and brokers, the

investors

Handbook contains concise and

new

comprehensive descriptions of more
companies,

than 925 over-the-counter
over

75%

than

the

last edition.

insurance

betical order for
Unlike other

are

easy

reference.

guides which provide

one-line statistical

summaries,

Securities

Over-The-Counter
book

Included

public utility, bank and
stocks arranged in alpha¬

industrial,

only

complete writeups

more

Hand¬

provides complete descriptions
with both text and

of each company

data.

statistical

For your copy
tion

of

of the 1959-60 edi¬

Over-The-Counter

Securities

Handbook, hound in durable Kromekote and printed in a new easy-toread

type

face

on

quality

paper,

please send $7.50 to:

OVER-THE-COUNTER
SECURITIES HANDBOOK
Jenkintown, Pa.

DeiJt. G

diate income for a

postpaid copy of Invest,
stock market game,
please send $5 to Division G, Research
a

a

rounlp nnints iinrinr

the

higher

points

level

18-20

or a

The

couole

nLt

date

in

and

the

where

back

as

last

more

ir-

far

there

an

^

of

"

'

directors

Promotion

Co., Jenkintown, Pa.

quarter

of this

Despite

1958.

year,

a

poor

start in 1959 when burdened with

,




a

*

•

•

information

-

write

or

York, Inc.

Yamaichi Securities Co., Ltd.

Tokyo,Japan
Brokers

111

&

Investment Bankers

-j

Broadway,N.Y,6COrtlandt7-5680

Annual

EARN

6

We

Reheis Co., inc.

the

••

.

at

Company,

within

of

Return

chain.
1942.

in the past
few years.

■

Dividends

paid

since

about $6.50

Currently

share.

its

company

Com¬

Reheis

a

suggest Class "a" stock

aggressive small-loan

per

recent
price of IOV2 does not reflect any
of the changes that have occurred
Reheis

ALBERT J.CAPLAN& CO
Members:
Boston

Phila.-Balt.
it-

Pitts.

Stock Exchange

Stock Exchanges

(Associates)

1516

LOCUST ST., PHILA. 2,

PA.

is
the
largest
producer of

pany

and

aluminum

Lackawanna & Western-

hydroxide
gels
and

permission
on
the 'basis of
P
f
,
*
J*
s"ares ot ^ne stoc|^ °t >ne ^.ew

aluminum
o,xy chlorides
in the United

g

sa^ngs amouritings
$ wr S*
t
r
over a Period ot three
flve
Years- This SUm alone would be

While the Lackawanna property
*s by no nieans equal to that of
Erie, both these roads have been
high earners in the industry within the past five years, and can be

LAMBORN & CO., Inc.
NEW

total

the

of

production
Kappler,

aluminum

Jr.

hydroxide
70% of
the oxychloride production.
The
aluminum
hydroxide
gels
are
sold
to
ethical
pharmaceutical
manufacturers
who
compound
gels in

the

Raw

—

Refined

Liquid

—

Exports—Imports—Futures

country and

drugs for ulcer management
the

SUGAR

50%

produces

Hugo

5, N. Y.

YORK

The

States.

of

STREET

WALL

99

company

control of

DIgby 4-2727

and

other stomach and

.

Alu¬
gastro-intestinal disorders.
minum oxychlorides are sold to
the cosmetic industry where they
are

used

share, and with the merger I can
foresee up to $5 per share for the

as

the

active

Your Red Cross

ingredient

bettered, according to Mr. Reheis,
if a container for an anti-per-

adaptable to the use of
combination. On this projection,
a price-to-earnings ratio of 7 to 1 alcohol gels could be developed:
Alcohol gels would be more ef¬
would appear conservative,
Obviously, what you have read fective since they have no oils or
here thus far is largely conjec- fats, as do other forms, to inter¬
spirant

tural. To make money in the
market, one must assume
and the risk taker must
imagination.
Let's stretch
little.

The

railroad has

stock
risks,
have
it a

been the

fere with their action.
Until

1955,

slow

been

capital
The

as

;

Affiliate of

was

in

the

ON THE JOB

expanding

grew

no

solicitation

circumstances to be construed

of

an

offer to buy,

any

as an

offer

to

sell,

or

since

primarily

security referred to herein.)

1

from retained earnings which was

Continued

yo

N. Q. B.
OVER-THE-COUNTER

.

INDUSTRIAL STOCK INDEX
20-Year Performance of

had

not readily available.

company

for

35 Industrial Stocks

company

✓

(This is under

v!

•••

New

of

Philadelphia-Baltimore Stock
Exchange and American Stock
Exchange

be

the exciting new
&

j

Yamaichi

well

steel
industry strike. The road exhibited pretty good earning power
throughout the period '42 to '56,
maintained profitable operations
through the 1949 and 1953 cyclical
recessions, ran into trouble in this
respect with reported net of only
30 per share in 1957, and a deficit
in

m

Securities Company

Members

Eri'

both

■.

HUGO KAPPLER, JR.

onin

bPe

f"

STOCKS

as

had it not been for the long

$2.51

F-i

Call

in
creams,
lotions, sprays
and
over 100 again under conditions of high
powders which control perspira¬
I know never level industrial production now
tion and body odor.
'
paid a dividend until 1942; at least foreseen for 1960 and beyond. It
Though more expensive than
the present common stock of the should
also be recognized that
company
incorporated
in
1895 both Lackawanna and Erie corn- aluminum chlorides or sulfates,
the
oxychlorides, because of their
started paying in 1942, and has mon have sold as high as the 24-25
since paid between $1.00 and $1.75 level within the past five years, less irritating nature, have proved
annually, until the last quarter of and> in "mY opinion, can again. to be an important sales item
1957.
No
dividends
have
been With or without the merger I be- of Reheis Company. Sales of this
paid since.
In my opinion, re- lieve Erie can generate earning product line are 41% of the com¬
sumption would have been made power of up to $3 per common pany's total sales and would be
years,

--ii

For current

Boenning & Co., Philadelphia, Pa.

sus-

regularity (ups and downs) should
occur, with long
term potential
in the neighborhood of 35-40.
Erie and its predecessor com-

panies

JAPANESE

MORE

equivalent to something in the
tailed trend should be unward neighborhood of $3 per share on
the first ^ of the advance^rrv- the
approximately 4V4 .million
ing to abou't 15-15
wher^irregu1° b? 0utstandlarity should be anticipated; the mg when the merger 15 ^consumsecond leg should be upward to mated, as I think it will be.

of

P.S. For

eithpr

the recent nrice of 11
of

branch offices

button railroad
return huge

are

pain

Direfct wires to our1

ultimately

gh^oLErie^ and on a°share-for?
1777 m°v£ o^ioTttat the' S ^are basis for stockholders of
aTer?Pgood buy for certain DL&W It is anticipated by man-

NOW OFF THE PRESS!

'

is through Erie.

at prices

which
I believe to
fo|lows.

stockholfers

Security I Like

Making

widows

co^mon

.

Management

be in a year or two
from now, but for risk capital accumulation in a range within two

UNLISTED HANDBOOK

NY 1-1557

La. - Birmingham, Ala
Mobile, Ala.

gains to its owners. As I see it, the
best way to share in outsize gains

°ZnS

ob™ aU™

;'.on

it might well

Saving^

HAnover 2-0700

but the beginning, the
of a system that will

the push

will

that

will bf addedtodm
a^'fods rfwetknesr This of

little li-

a

.

Money Is Erie Delaware
Common."
This is not

for

Best

York 6, N. Y.

Pennsie, Central, Nickle-

of

day

FaYned fnd

with the title of this forum,

Railroad

Si
si

1st.

and add to it, "The

'Nof

19 Rector St., New

New Orleans,

Plate, and Erie-Lackawanna, and
I look forward confidently to the

fboveX^Srrent level
*f8^vXmffacto dS
fa™*** J^XlS triMndicates
^chased holdings have been re-

of view. The former instance is self-explanatory, the latter would of course entail only

is

include

minimizedj though

^ leiVtry
* **.

merger

forerunner

when they are ac"

110 less rea1'

the point

1951

between man-

is shaping.up

up kudos, or case> the stakes of a possible vicapologies, but to {ory for the industry in modernizmore
emphatically illustrate the jng WOrk practices dating back 30
point that to choose the "Security years are so high the battle is
I Like Best" is a more difficult Well worth the risk,

DARLING

BULLETIN

to

6 8 3.9

L. A.

Exchange

Members American Stock Exchange

looking the prospects of plenty of
labor trouble for the rails in early
'60. Erie is not alone in the battle

from

about

ON

five

At this

rise

LATEST

Members New York Stock

whipping boy of the economy for
years. It has had to compete with
subsidized types of transportation

ing.
With this outlook, Erie is' rules that in some instances dates
probably going to report a loss back to the days of the horse and
upwards
of' $2.50 per common buggy. The wonder of the carrier
share for 1959.
That's the worst
industry is that it has survived at
that I foresee for Erie for a long all.
It has, it will, because there
time. The transition from red fig¬ has
never
been
a
replacement
ures to black now foreseen could'
found that will deliver so much
carry
to as much as $3.00 per tonnage so efficiently: I can't help
share in 1960, and—I am not over¬
but
think
that
the
Erie-DLW

writing,
con¬
sidering
an

FRANCISCO

Principal Cities

—

Steiner, Rouse & Co.

Philadelphia, Pa. (Page 2)

a

even

a

me

of

trial

BOUGHT

Hugo

downtrend

s

winner in four

CHICAGO

Wires to

—

until mid-December,, has borne
;just about every,,con- •
under the best of conditions' ceivable tax
possible; and has had
that can be forecast at this writ¬
to contend with a set
of work

tributor

four

made

Exchange

SAN

Inc.

~

the market has

Member

Stock

American

drastically,

Bought—Sold—Quoted

Company,

Kappler, Jr., of Boenning & Co.,

doesn't

memory

con

Established

traffic

Louisiana Securities

Gerald

fail me, this opinion) the road reported a loss
continuing forum started some- exceeding $5 million for the first for years, automobiles and trucks
time in 1950, and I am quite sure nine months of the year, will add on
publicly owned and maintained,
that I was a contributor to the something like $1.5 million, to.this
highways, airplanes that are sub¬
forum in its
figure when results for ten months sidized landing on publicly built
are known, and will probably not
second weekly
airfields, and even with subsidized
turn
upward .from an earnings ships on the water. The industry
appearance. A
If

"

Associate

shutting

—

Partner, duPont,
& Co., Boston, Mass.

(Page 2)
Iteheis

trend that has continued to the
P As a result of the strike (my

Erie Railroad Co.

Primary Markets in more

the

inspired

loadings

dropped

Exchange (AssocJ

Nationwide Wire System

steel

0f

0ff

when

July

jn

ures

Members: New York and Boston

Colby,

Homsey,

into black fig-

about to break

was

Boston, Mass.

Speed

Hew York

Erie Railroad Company

high bad weather costs and slowly recovering carloadings, the road

COLBY

S

f>

Partner, du I out, Homsey & Co.,

than 400 OTC

security.

S.

of

sure

for favoring a particular

Alabama &

r

Their Selections

in which, each

participate and give their reasons

Call "HANSEATIC"

Participants and

Forum

week, a different group of experts
and advisory field from all sections of the country

A continuous forum

..

.

This Week's

I Like Best...

The Security

only

Brokers, Dealers

For Banks,

on

page

41

»FOLDER

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

-

New York 4, N. Y.

Volume

190

Number

5900

.

.

.

The

Commercial and Financial Chronicle

(2095)

What Time Is It

the

on

CONTENTS

Stock Market Clock?
liv Edmund W.

D-J

sees

Industrial

NO

'Investment Implications of Our
Population Growth

Average topping out in

What Tune Is It

the

on

Stock

Cover

|_

*

•,

?

for

a

are

in

vulnerable

more
a

*

-

ing price diversity of

theories;
stocks

'

Edmund W. Tabell_i__;.___:________,__

observes

and

examines market

emerging pattern of

new

wider

a

stock to another;

one

for

one

bonds;

and

a

narrower

envisages

4* *t

wave

*'

'•

—Ira U.

advancing

an

" '

v

*

*

•

1

•

r

■

•

i

'*

'*•

.

-

v"

.

Obsolete Securities Dept.

4

.__

WALL

99

'

Ccnco Instruments Corp.:
Broadening Science's Orbit

for

range

*■

your

Wall!

3

/Investing in Steel Stocks—Theodore H. Gerken____

>■.

for
99

at

"

market, Mr. Tabell doubts, however, thaLwe

major downtrend* The analyst explains the factors influenc-

cash

....

obsoletes

Market Clock? *

.

revealing investor confidence is currently extremely high and makes,

COMPANY

THE SOUND OF MUSIC

.—Philip M. Hauser__-__,______^_.

1930 to 1981 at around 780 to 800,
compared to last August's high
of 683, before declining to 750-525
range in next five years.
In

LICHTflMM

B.S.

Articles and News

Tabell,* Director of Institutional Research, Wahton
& Co., Inc., New York
City

Expert market analyst

STREET, NEW YORK

Telephone:

Cobleigb

WHitehall 4-6551

'

D

market

wave over the next ten
years. Investors are advised to be
selective and not solve their investment
problems by remaining static

and

1960: Springboard to

owning the "Favorite Fifty."

Growth

Inflation?

or

—Thomas G.

9

—-

Many

investors

issues and groups.

^onfused by
seemingly irrgtipnal,"behavior

the

of the stock market.

difficult

to

of the

They find it

understand

why

one.

•

►

American
their

50

or

times earnings
at

10

t i

They

m e s.

tion
do

confused when

stock

one

are

ad¬

an

explained
rather

attempting

trends

in

the

by

market should

barometer

a

thermometer,

than

*

A

dis¬

to

advance

was

rather

in

fact that the price

of

by the
stock de¬

a

single yardstick
elements.
These

elements

probably

can

down

to

four

main

be
in¬

Tnree of
tangible:
(1)
earnings, (2) dividends, and (3)
money rates or bond yields.
But
there is

terms

of

numbers

to

factor

is

investor

vestor

confidence

that

and

confidence.
is

that

is

stock

a

11

COLLINS
RADIO

13

It

opinion,

our

lifetime.

of

an

It

that

period.

told

earning $10

We

See It

:

never

trend

and

(Editorial)..

that

occur

the

will,
again

of

of

end

-prices

-

new

'

of

■

Man's

Bookshelf

V

i

'

'

.

-

•

J.F. Reilly & Co.? Inc.

31

____

'

•

39

t

______:

DIgby 4-4970

8

•

-

■

Einzigr "British Stock Exchange Boom Continues",

i

From Washington Ahaed of the

8

24

>___

News—Carlisle Bargeron

that \

Indications of Current Business Activity:

7

-

...

C. Brewers

42

__

Castle & Cooke

-

-

~

Mutual

NSTA

Funds

Notes

News About

•

ci

Banks

and

Bankers..^

16

Hawaiian Electric

41

Hawaiian Telephone

18

Hawaiian

inventions of

change

Observations—A.
Our Reporter

Our

on

Wilfred

May-----,

Governments.—

Reporter's Report.

27

1_,

I-

Singer, Bean

41

,

Public Utility Securities

confidence

Investor

market

The best but -far from

to measure.

Breadth-of-the

ket action as

advances

declines

and

is

the

action

of

General Electric

undervaluation

new

highs and new lows, is sometimes
quite helpful and I maintain a
•large library of graphs and charts
of this nature. Even more impor¬
tant

drastically

more

Securities

8

;___

Securities Now in Registration

than

in

1949

were

1932

was

even

were

■

greater

Direct Wires

Chicago

several

individual

1932 there

years

Continued

of
on

39

24

The Market

17

were

.

.

and

.

You—By Wallace Streete

Security I Like Best-.:

5

Tax-Exempt Bond Market—Donald D. Mackey__..____i_

6

and

26

You

LISTS

44

'

w

"

e

have

specialized in

Weekly

rULrLIIIILU

CTflPK^
01 UUIIO

FINANCIAL
Reg. U. S.

25

Spencer Trask & Co*
Founded
New

York

1868

Stock

B.

Park

Reentered
a.y

Patent Office

DANA

COMPANY,

Publishers

25,

DANA

SEIBERT, Vice-President

Thursday, November

19,

Pan-American

Union,

25

BROAD

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

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Nashville

Boston

Newark




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Other

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news.

Office:

Chicago 3,

111.

135

news,

bank

clearings

etc.).
South

(Telephone

Bank
$45.00

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St.,

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and
per

oiiice

at

New

$65.00

■

tested"

$68.00
per

year,

per

of

ambitious

mailing

list

re¬

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&

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must

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Note—On

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quirements.

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of March

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names

1959

Every Thursday (general news and ad¬
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records,

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'

GEORGE J. MORRISSEY, Editor
WILLIAM

second-class

as

1942,

York, N. Y., under the Act

Place, New York 1, N. Y.

REctor 2-9570 to

CLAUDE

Exchange

Company

CHRONICLE

of

Americans eager to invest in spec¬
ulative venture.
Call Dunhill for

Copyright 1959 by William B. Dana

The COMMERCIAL and

DDCrCDDCn

WILLIAM

Members

Twice

supply

can

thousands
Published

For many years we

St. Louis

MAILING

almost
page

Dallas

Philadelphia

2

The State of Trade and Industry--..

Washington

to

Cleveland

Los Angeles
San Francisco

-

earnings in
already in qn uptrend

that started after the end of World t

still

:

Security Salesman's Corner

The

because

War II, while in

Prospective Security Offerings^

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

32

un¬

selling at six to seven times earn¬
ings to yield 0V2% to !Vz%. The

mar¬

portrayed by volume,

and

like

stocks

perfect method is by a study of
!the
technical
factors
in
price
movements.

was

dervalued in 1949 than at any time
in our financial history. Blue chips

difficult

is

mackie,

&

12

HA 2-9000

Railroad

Airlines

4

___.

-

three fundamental factors.

Broadway, New York 5

44

Dealer-Broker Investment Recommendations___________-

The next 20 years were a

a

r-

an

back in 1850. Perhaps

many

-

______Cover

Stocks...

a

call this 80-year

the

19

Coming Events in the Investment Field

'

1929 was the end

was

RESEARCH

The
of

result

factors

oc-

'

Business

times

many

the

of

ATLANTIC

__.i.

^

period ;
during which time a ;
share sell at $75, or only seven
great many of our former beliefs
and a half times earnings at one
and concepts altered quite raditime and will make the same stock
cally. World War II added to the
with
the same earnings
sell at
-change. By 1949 we were ready
$200 or 20 times earnings at an¬ to embark on a new era.: The in- :
other time. This intangible factor
vestor, however, did not believe it.
of investor confidence, or lack of
•The fear of 1929 still hung over
it can, for long periods of time,
the stock market.
be much more important in its
In 1949, investor confidence was
influence on prices than the other
extremely low. In fact, the stock
that makes

—_

12

Edward L. Hoi stem

^

the period.
1929 signaled .the end /'
of concentrated wealth.
'
r

In¬

element

—

peak

a

period the
Era of Private Capitalism where a
comparatively small number of
individuals reaped the rewards of
the development of the country

This fourth

measure.

excesses

that

in

we can

tangible, that cannot be expressed
not easy

truly,

-

in my

started way

are

fourth factor that is not

a

ELECTRONICS

____.

Financing Picture in 1960 for the Finance Companies

Bank and Insurance

•

was

era.

investor
is

been

It

upward

stock prices.

on

point,

confidence.'

during

has

combination

on one

many

factors

HERMES

•

—Donald K.. Russell.

-

to go into detail on

speculative

story

explained

of

more

speculative

before.

prices, is

fluences

A-

1.

;

in in-,'

lowest

peak

a

not necessary

stock

narrowed

/

Interestingly

the

confidence—or

the

on

10

Economic Outlook for the Domestic Oil Producer

As

curred

pends, not

States

Warning to America—Roger W. Babson___.

mar-

Regular Features

also

and

larger extent, however, the
seemingly irrational behavior of

in

moment?

s

■

confidence.

1929

a

these

—Charles W. Haynie__

tory,

a

tion.

many

the

10

d.__

1

Profit Factors in the Domestic Oil
Industry

indi¬

the stock

on

Oil Companies Outside the United

—Maxwell R. D. Vos_

both occurred in the last 30 years.

than reflect the immediate situa¬

but

Outlook for

What

technical

at

,INDU§TRO
L

enough,
toe
highest
confidence
point in recorded financial his¬

•

fact that the stock

To

shew

"vestor

of

Part

count

various

:

-

.

Perhaps the best approach to A
the question is to examine the two *

Edmund W. Tabell

seeming
irrationality is
as

investor confidence.

{extremes of high and low

up¬

this

act

of

Currency Now

market

Highs and Lows of Investors'

.

earnings
in

trend.

the

Our

Confidence

another

its

and
com-

as

-

of

TRANSISTOR

ket clock?

declines while
-are

of

rest

What time is it

--

'and

the

these

cators

of

earnings
declining

s

Exchange

strengtxi

Stepping the Debasement
—Franz .Pick

while

vances

i t

to

some

is a partial answer to the evalua-

become

The price

Stock

relative

pared

danother

a n

<,

1,500

at

40

Continued study

price action bf

individual companies listed on the
New York Vstock Exchange and

stock will sell

3

Record

(Foreign

account

of

the

I
—

Monthly,

Postage

extra)'.

fluctuations

of

in

exchange,
remittances
for
subscriptions and advertisements

be made

in New York funds.

I

| INTERNATIONAL LIST CO., INC.

j Dunhill
I

MU

Building: 444 Park Ave., South
New York 16, N. Y.
6-3700

TWX

NYL

315J

The Commercial and Financial Chronicle
4

.

Thursday. November 19, 1959

.

.

(2096)

not

OBSERVATIONS..

the Split

Split Evidence on

PIE

By Theodore H. Gerken,* Vice-President, Laird & Company, Corp,

Delusion"

take

now

us

New York City

fresh look at

a

Wall

Split's twin brother in the pie-

the

attribute,

the

Hemphill,
Noyes & Co.
the

di-

rection

of

under

a

com¬

a

pilation re¬
vealing what

is

relationship

Stock

the

MwHWlii

prices of some
selected
split

A.

which

had there been no split.
Under this hypothetical assump¬

Kline and French
selling at 21,690

Smith

today be

would

(exceeding even un-split Christi¬
ana
Securities'
16,000
current
price tag. Rohm & Haas, had it
not been split since 1947, would be

quoted today at 7,100 instead of in
the present 700 area.
Minnesota
Mining,
likewise
split
several
times since 1947, would be priced
at

140

today's

of

instead

2,382

level. American Home Prod¬

currently

would

ucts

and

.

be

quoted

1,014 instead of 160; Pfizer at
2,925
in lieu of today's^ price
ticket of 33, etc.

at

We, of course, agree that some
advantages can accompany use of

feel that (1) its
employment is unduly extended,
and (2) more important, many in¬
vestors are misled concerning its

the split. But we

the

strongly endorses use of

so

provides

unwittingly

split,

Ex¬

high
all

'two-for-one

split'

counting

differs,

treatment

it

Exchange,

more

shareholders

shown
increase in

the greatest
shareholders

with 45,000

of

rate

on

shows

all?

a

that

the

largest

difficulties.

per-

A second

major defense of split
on the contention

that,

constructively,

it

provides

growth in the company's number
of shareholders.
at

least

way

But this has not,

uniformly,

worked

in actual practice.

Telephone's

that

American

stockholder

family

(somewhat swelled by conversions
via

rights

stock)

offerings,

grew

to

common

to 1V2 million while

| have been

ac¬

I

but
prin¬

the

at

over

per

among

are

the

other

time

the

well

as

pend

in

the

long

shareholders'

run,

families

very

year

the

steel

I

those

to

suppose

earlier

investors

continue to buy common stocks at

today's levels because they expect
them
to
go
higher — eventually.
They have been quite successful
in doing this recently.
The mere

preservation of principle and main¬
have not been

of income

tenance

enough.

Our

decreed

that

earnings

and

BROKERS *0EALERS

*

dividends

cash

dividends,

it

the

of

Dean Witter

the
the

of

tax

avoid¬

regular personal
cash

on

not

Hence

same.

in¬

Co.

to

the

their

to

nature

of

the

Dividend, is of primary im¬

evaluation of
should be pro¬

Realistic

latter

policy
by

company

manage¬

•

or

which

so

smaller

have

been

bond

Gen¬
Oil of

compa¬

equally

successful.
•

Yes, it camiot be denied that
holding
steel
stocks, has
been

highly

remunerative,

as

to

a

see

return

a

lower

prices

declined

those

to

days

your

Porterfield.

BIRMINGHAM, Ala.

CHICAGO

lory

Offices Serving Investors 1

has

President
First
.

404

been
in

Of course,
advance in
steel
quotations
when
demand
was
brisk, as in the first half of
temporarily.

they would expect

this

no

year.

Ten

ago

years

the

came

t-

To

structure held, and

well

rather

were

steel earnings
maintained; but
not attracted

most investors were

steel

to

War

stocks.
to

drew

a

As

the

close,

Vice-

apparent that the country was ih
another
economic
recession

for

and

that the steel industry

suffer.

It

volume

charge of sales for
Savings Corp.,

Investment

North 21st

Street.

would

in 1954, so far as
concerned, but again

did

was

and the earnings of
companies
actually
im¬
proved. That year saw a basic
change in investor attitude toward
the
steels.
The
break in steel
prices

held

many

stock

prices, which many poten¬

tial buyers

expected to accompany
Continued

especially
ESTABLISHED

on

1894£

STATE AND MUNICIPAL BONDS
CORPORATE BONDS

RHODES-HAVERTY BLDG.

Korean

it became

V.-P.
Milo Mal¬

first

decline in steel demand.
the surprise of many, the price

postwar

LOCAL STOCKS

appointed

of

demand

whenever

the

paragraph expresses the opinion
columnist;
not
necessarily
of

a

few economists would like

Of First Inv. Savs.

Honolulu Stock Exchange • Chicago Board of Trade
and other leading commodity exchanges

NEW YORK

con¬

Jersey, to mention just a few.
can safely add to that

half dozen

as

true

Mining,

characterized

was

even

substantial

Standard

which reduced al¬
earnings to the
point. Ih those dayfe

industry and
were few and
between. Some politicians and

far

Pont, IBM, General
and

extraordinary

an

in

"prince-or-pauper"
the princely eras

believe I

nies,

in the case of
Split, education of the public
event,

Milo Mallory

Members

du

Minnesota

and

vanishing

different for
a

are

stable and rising price

a

meager

steel

list, the stocks of the eight lead¬
ing steel producers and those of a

dividends

attributed

be

I

dividend.*
any

Professor

New York Stock Exchange • Pacific Coast Stock Exchange
Midwest Stock Exchange • American Stock Exchange

of

Motors,
New

In

D1STRIBUTORS

invested

today's

reasons,

important

cutting,

ready

part of their funds in the common

him
original holdings, with the

bill

price

actually deteri¬
at

many

most

plant efficiency
resulting from huge capital ex¬
penditures.
There
was
a
time
when every decline in steel de¬
mand
resulted
in
widespread

inflation,

been

has

who

those

have

value

his

*This

•

and
chemical

about

are

two

improvement

are

income

on

tax

There

the

but

yielding a very poor
today in terms of real

period

eral Electric

investment services,
and all other professional advisers.

ANGELES

more

annually,

electronic

years?

structure has
is
not
nearly

tax

of

the cash dividends paid to

ments,

&

am

If, then, steel is not a growth
industry, how have the earnings
of the major companies managed
to
expand so much faster than
the economy as a whole in recent

which
has become a reality since World
War II. Many large estates which
have been invested solely in fixed
income
securities
during
that
threat

on

mulgated




reason

best

Getting 5 back

questions,

from his stock dividend shares, as

as

permanent price rise, de¬

on

the

on

en¬

the

LOS

been

industry ever has enjoyed. But
perhaps we should postpone this
unpleasant subject until later. .,

stocks

that

larged

ar¬

portance.

♦

has

tag

no

the

received

conclu¬

Stock

41

see

be

It

ticles,

rate of

a

3%

knows

everyone

structure

can't

prices.

our

I

to say that this ob¬

or

why 1960

lifted, I

split.
backs

2%

probably

and

record

conservative

just passed.

year

60's to rise at

than

good indeed. If the strike can be
settled
before
the injunction is

in

This

.

the outlook for
industry in 1960 is very

orated

as

FRANCISCO

.

can

dollars

sion, spelled out in previous

the

job

be even higher; but
be paid largely in

may

the steel

needs

Complete Investment Service

SAN

the

made

current year,

original holdings; in either casepaying a capital gains tax. It must
be realized that he also pays the
tax
at
regular
income rates

most

are

jection is well founded. We can
scarcely expect steel demand in

the outcome will be,

price

if the bill

Porterfield

Professor

the

high. It

dis¬

their

of

but

the form of stock dividends or his

the

been

stock

Private leased radiotelegraph
circuit to Honolulu

not

know what

appropriate comparison.

high-

have

highly
still so

were

many

sorry

as

and

despite their abstenance from the

gaining

which

just

Mc¬

Mr.

-•

shareholders

issues

should

'

has

Actually, when the stockholder
more cash,
he must sell a
portion of his equity whether in

priced

stocks

/by

burgeoning

should

the mills not been opened

Had

.

I

that

you

easier.

but not an advantage
dividends at all, which is

no

come

•

stocks,

much less enthusiastic.

assure

can

Donald

dividends,

112% gain in shareholders.

Pont, Dow, International Pa¬

ance

UNDERWR|TIRS

steel

discuss

to

Products,

the

technique rests

regarded

clarity he dispels by
governmental
injunction,
I
companies which
chief
illusions
surrounding could state that investment in the expand their sales 10% or 15%
paper-dividing process; show¬ steel stocks had not been seri¬ annually and sail through reces¬
ing that the Stock Dividend as ously hurt, but only somewhat sions and depressions without a
well as the Split, give nothing of bruised. Now, I can't do that .be¬ jiggle in their upward trend of
value to the investor. He tellingly cause the strike isn't over. I don't sales and earnings.

dividends.

a

Steel

speculative, and they
.

not

although points out that this constitutes an
enough; and there is also the
remaining un-split, ranked third advantage
of
stock
over
cash
Du

Ownership

Prior to

the

taxable

with

Broadening Share

true/

high grade bonds? Why
their own or

happen last spring when I agreed

stant

On

past five years.

quite...sure that I investors// This;■ is
due - to
the
ansWer, no".'more than cyclical characteristics of the in¬
I know why rndst of the nation's " dustry, which I am sorrow to say
steel mills had to be closed down are probably here to stay. The
for more
than thrde months in other / basic
objection do
steel
the most prosperous -year in our stocks/can be traced to the failure
economic history, -1-. am spre that of/the industry to grow as fast
if I had known this was going to as the economy, even during the

hardly conform to the "bargain" tribution. While
they are indeed
level prescribed by the pro-split¬
thus seriously con¬
not taxable at the time of dis¬
ters
as
the
prerequisite
for
market speculation
tribution, this is so because, as we
broadened shareholding.
and inflation. Only today, as this
have
pointed
out
above,
they
Of the other 29 companies listed
is being written, news of three
actually do not constitute real in¬
more splits
is laid as a boon by as the largest percentage gainers come. They are customarily tax¬
in the number of owners, 17 are
both the press and market partici¬
able only when and if they are
pants. One of the splitters, Fire¬ companies which have not been sold, at the capital gains rate in¬
stone Tire, even with the accom¬
split during the three-year period stead of the ordinary personal
panying dividend increase, sells
income rate which applies to cash
covered by the growth figures.
to
business

the

the

ge

Thus, Corn

point.

the

know

implications,
tributing to

yield but 2.3%, and is rated by
analysts as facing a period of

of which he identifies to

some

over

people's. money in stock at
I'm

record

World War .II, this was not always

5%

should anyone invest

gain in shareholders,
brings jhome the fact that both
153%, was scored by glamorous
simply represent division of the
IBM. Actually this "blue ribbon"
corporate ownership into a larger
result invalidates the concept that
number of smaller pieces.
/".
a
split to a low market price is
necessary for shareholder growth.
Fictional Tax Benefits
//i
For IBM's
1957 split, a 2-for-l
Particularly widespread are il¬
affair, reduced the price merely lusions
concerning the tax treat¬
to the 290's; with the following
ment of stock dividends. Much is
"stock-slicing" on April 29, 1959
made of a supposed advantage of
still leaving the post-split shares
tax avoidance by reason of the
up in the rarefied atmosphere of
fact that stock dividends are not
the
390's.
Surely
these
prices
t

c e n

a

unusual

With

early 1956.

since

It

or

have

which

the

to

article in its

an

of

The

buy, the steel

anyone

today when you get

a

the industry's over¬

sees

stable necessitating, therefore,

more

aggressive firms,

return

other

dispute successfully and, if

injunction is lifted, to achieve

earnings growth becoming

Why should

"Divi¬

instead

labor

the

in 1960. Looking further ahead, he

year

stocks

emphasizes

dividend.'

stock

'100%

survive

illustrate his

of the Split and
Dividend
("Simply read

Stock

to

careful selection of

the

of

status

the strike is settled before the

similarity

anti-splitters.
this is not relevant
publication, The
ciple involved'").
lists 30 companies

ammunition for the
In

stocks in

for steel

store

pared to the rest of the economy. Mr. Gerken expects the industry's

Delusion,/

Professor Porterfield

Ironically, the Stock Exchange,

be today,

tion,

Dilution,

dends,

issue

Review

Business

Harvard

the

Anti-Split Testimony

May

Wilfred

would

issues

November-December

April's action goes on.

current

the

whopping 13% gain in the corre¬

in

lies

light of the Taft-Hartley injunction's failure to settle the strike

investment

1956-1957 non-split pe¬ with the significant sub-caption/
riod, and a 2% rise of the corre¬ "Can
Management Put Stockhold¬
sponding interval1 in 1957-1958. ers
in " the
Happy
Position of
Based on split precedents Tele¬
Eating Their Cake and Having It
phone's current meagre population Too?"
by Professor James T. S:
rise will "fade" as time since last
Poi'terfield of Stanford University.

ton/- have
made

limited to 4%, against

what

issues, and in terms of the industry's growth and earnings rate com¬

sponding

Clay¬

Harold

the number of share¬

in

rise

holders was

examines

—particularly at the public's at¬
thereto.
Confirming
the
existence
of
this
close
family

in the

this

banker

the

record change's definition of the Split as
One of the two
major defenses
before a dividend
greater than 24%. As
made for the stock-split rests on
and after its actual initial split
with the Split, most shareholders
its alleged
attractiveness, if not last
April, also indicates the non¬ are
glad to receive the stock divi¬
actual indispensability in reducing
existence of the vaunted stimulus
dend in the belief that they are
the
dollar
holder-wise from splitting. In the
receiving something for nothing.
price
of
October 1958-October 1959 inter¬
A welcome addition to the allgrowth issues.
val, which constituted the "rumor too-little literature on the subject
Picking up
stage" and the post-split interval, is provided by. an article in the
150-200 area. AT&T's
of shareholder growth both

Street

slicing family—the stock dividend
titude

shares were selling up

the un-split

Dividend—

"Dilution and

WHO SLICE THE

m

«

*

The Stock

Let

ON THE TWINS

the stock cer¬

up

(
«

A. WILFRED MAY

BY

cutting

on

tificates.

ATLANTA 3, GEORGIA

JAckson 1-0316

page

20

Volume 190

Number 5900

.

.

The Commercial and Financial Chronicle

.

(2097)

5

Steel Production

This is

Retail Trade

and' INDUSTRY

TRADE

.-J Food

,,

r

Price Index-'?

Auto Production

■

*

clearings

a

based

week

this.,

show

will

increase "compared

an

year ago.

Preliminary figures compiled by the "Chronicle,'1
telegraphic advices from the chief cities of the country,

on

indicate that for the week ended
Saturday, Nov. 14, clearings from
all cities of the United States from
which it is possible to obtain
weekly clearings will be 8.8% above those for the corresponding
week last year.- Our
preliminary totals' stand at
-against S20,738,638,041 for the same week in
tive summary for some of the

principal'

Week

Ending Nov. 14

Chicago__________

Philadelphia

For
..

the

+18.3
1.4..,

.

665,303,650""'

our

2.6
1.4

+

674,884,911

—

detailed

summary of bank clearings in
Edition of the "Chronicle," issued

week's

for

summary

the

leading

page 45 of the Nov. 16 issue.

banking

U. S.,

refer to
Mondays. For

centers,

•,

refer, to

we

be

Union and Steel

Industry Resume Negotiations

the union and

tiations.

the companies have resulted in

This is in advance of

the renewed

scheduling of meetings by Federal

Pressure

the

on

done.

in

was

is

to

runs

avoid

out.

second

a

Pressure

on

walkout
the

com¬

panies is the threat of Congressional action to force
compulsory
arbitration if the strike continues into the next session of
Congress.
But

the

magazine cautions

that

the

recent

meetings did not
optimism.
McDonald,
Cooper, chief industry

bring the two sides close enough to cause
They did clear some of the air between
steelworker

President,

R.

and

Conrad

surge of
David J.

a

im

If

of

the

miles

in

a

reduce

,

Fischer

bv

this

Moisture

Cencr

and

1,1
Smoke

Standard

by

Ira u.

Cobleigh

-

Which led to the

hurry

Defense Educational Act

of $70 million

a

maxi-

a

in Fed-

year

eral funds to buy scientific equip-

■■

Point

Lamp
Indiana;

of

distribution rights in the edu¬

field, for a new missilestype
gyroscope
devel¬

oped at General Motors.

scien¬

Vanor"

L; P

ideated

with

great

these

in

ented

such

instruments
for

eral grant it is entitled to.

five states

Fortyalready arranged

have

to do this for

1960.

all

so
are

pdnpa+;nnai'
educational'

cripnti'fir*
scientific

suggest that

Cenco

its

is

time,

as

will

continue

£

took

over

herded

five

years

Mr.

John

by

Chairman
Alfred

shep¬

ago,

T.

Gossett,

of

the Board, and Mr.
Strelsin,
President.
flying by instruments,

A..

Cenco

offers

Its

on

hardware
hardware,

present dynamic management that

is

but has

expansion

time.

some

pretty good pilots at

hand!

Dempsey-Tegeler
Has Absorbed

annua,

Burke&MacDonald

a

remarkable

a

and profit margins
same

university

scintillating business expan¬
Especially
so
under
the

sion.

as

moving ahead by 50%

This

year.

the

population

bankroll tQ be, spent- mainly

funds is

sales

school

from^^ Kindergarten Yo

of
Cenco earning power,
But enough of this cataloging of
products.
Let's get on to the fi-

more

Our

aoctorate la science minaea. mat
fact plus Uncle Sam's $30° million

for

each state must put up enough of
its own money to match the Fed-

industrial

an

decade- And this generation of
students

elementary and second- nancial side of this eager anc
schools.
Allocation of these smartly managed company. Cencc
by states, and, to qualify, is a money-maker, and getting

ary

in

is

recession.

Working

corporations

potentials

that

rocketing forward,
and is uniquely insulated against

bringing to market pat-

new

great

field

Instruments Corp. is the
company

enrollment will treble in the next

...

Karl

leading

is teeming; college and

,e_ Appar.atyS^., worked out
Phillips Petroleum; the Cen-

guidance

1958, making available

mum

Cenco

unit

one

greatly

co-Indiana

and

more

a

m.n,„

cational

we

better

tists in

.3t>

with

then

National

40

can

Determinator

appar¬

trained

by

potential ' developed

elude

*

us

that

re-

intercorporate research liaison in.:

tech¬

nologies
it

$2,150,000 in long-term debt.
or

pipeline

costs.

rales

had

these

ment

steelworkers

Taft-Hartley injunction

it

'h

nego¬

mediators.

after the

in

Russia

and

negotiations have been stepped up in the form of secret
meetings between top negotiators, "The Iron Age" reports.
The national metalworking weekly
says that pressures on both

every

pipeline,
a.l01,

missilery and
rocketry.
Something had
to

installed
labor

were

trailing

a

sells for $3,300 and, with

atom¬

needed

Steel

that, despite

early and
manding
in

in

remote control. This Gravitometer

com

ent

,

.

realized

All of

products

common.

be sold this year end for tax
losses, since it has been rising
steadily! Ahead of the common is

of

blending of different crude
fined

Cenco

are

not

and to the production and
marketing
instruments for industry and national defense.

new

in

1,013,479 common shares
outstanding, listed on the Ameri¬
can Stock Exchange and
currently
quoted around 32. The stock will

aggressive company dedicated to the advance

on an

education

complacency.

we

outstripped
a

Statistical

"this

% ;

$11,042,535,693'/ $9,330,457,413
1,172,267,782
1,188,939,453
039,000,000 .1,013,000,000

Boston

; a sudden

ics,

1958

exciting

to American

Our compara¬

follows:

scientific

When the Russians sent Sputnik I
orbit in 1957 it was a shock

lead

centers

money

of
b

into

$22,564,389,006

1958.

1959

New York'—

themselves

By Dr. Ira U. Cobleigh, Enterprise Economist

A brief report

Nationwide Bank Clearings 8.8% Above 1958 Week
Bank

a

There

.a-■+

++ y

With

for

s

?.

^BusinessFailures
:
..LuJ-^Commodity Price Index

■

a lot of
corporate mileage
single year and this unusual
velocity has caused quite a few
sophisticated investors to interest

Corp:

e

are

rate,
rising .at the

KANSAS
and

Cenco increases the

CITY, Mo.

The staff

—

personnel of Burke

Mac-

&

negotiator.
"The Iron

it
be

Age"

that if

"voluntary" agreement is reached,
It will probably
three-year contract and may be sweetened slightly from the

will
a

be classed

last offer made

says
a

as

few

a

a

non-inflationary package.
weeks

ago

of

10

cents

hour

an

wage

cost.

The

magazine says that the best guess on the critical 2-B
practices) clause is that if it-goes to arbitration, the
language must be a two-way street. This is to counter the union
(local

claim

that

it

is

not

treated

fairly in the companies' arbitration

proposal.
Iron Age"

reports, Mr. McDonald

and

the

steelworkers' union

are launching a plan of massive
encirclement.
The intent is to reach settlements with the aluminum
industry, the

industry, and the canmaking companies.
negotiating with the steelworkers' union.

copper
now

All

of

them

industry
during the strike; less damage to steelmaking facilities
feared; and better; than hoped-for cooperation by steel¬
"

+

while

mills

rush

:

ing.

ingot-making operations,

it

will

still

tonnages of finished products are shipped.
shipments of products stored at mills or in process raised
false hopes and mills are
discouraging premature joy.
J

Nevertheless, the fast getaway is encouraging to most users
spite of the delay before balanced shipments can be expected.
Bottlenecks

now

are

Its prospects

for

;

it

can

forward

a

to some $140
in school purchasfor its wares.
There

year

power

,

28,500 high schools in the

now

United

States.

This

market

alone

when

is

you

a

con-

that
wiii

has acquired Atomic Laboratories
of

Berkeley, Calif.,

er

of

scientific

apparatus

to

test

the

condition

These

instruments.

-tions do
eral

not

institu-

under the Fed-

come

grant, but their

has been

science

budg-

in the

finishing facilities, rail car short¬
ages. and the possibility of greater furnace damage than
appeared
shortly after the startup.

selling to them lor dec-

ades-

..

Over
sales

60%

wide

Cenco has

them

well

market

former

are

and

nation-

a

organization

are

this

cover

current

schools, colleges

sales

salesmen

Cenco's

of

to

are

universities.

its

and

equipped
since

science

most

financial

fashion.

You'll

dozens

over

companies

and

have

to

of

to

come
up
with an
moving
forward
as
rapidly as Cenco. Its net earnings
have trebled in the past five years.

new

;n

F

Kansas

oharep

of

Resident

Teeeler

City office
Laurence

Dempsey-Tegeler
of

the

&

New

suppon from

tors.

bargaining table with solid

their customers for their firm

stand

on

Continued

Specialists in Canadian Securities

wages
on

page

and

change, Midwest Stock Exchange,
Salt Lake Stock Exchange and is
associate
member
of
the

an

American Stock Exchange.

Lloyd Canady With
Howard Traywick

enterprise

Total

sales

ended

4/30/59

and

net,

share.

to

sales

of

net

for

$729,148,

For 1960
will

per

the

we

reach

share

fiscal

$15

were

or

72

year

million
cents

million, and

advance

to

C. Traywick

of Howard
pany,

& Com¬

Inc., Atlanta Federal Sav¬

a

anticipate that

$25

ATLANTA, Ga.—Lloyd E. Canady
has been elected a/Vice-President

$1.35

ings
North

Building.
Carolina

He

will

30

Cenco offers

control

the firm.

teachers

a

broad line of

instruments

and

lay out a program for com¬
pletely equipping any new labo¬
ratory.

can

Not only is the Cenco name well

as

Principal for

Brokers, Dealers and Financial Institutions

known

in

the

educational

fields

but

almost every technical or in¬
dustrial laboratory in America has
at

least

Cenco

one

instrument.

A second

Grace Canadian
Members: New

25

York

Securities, Inc.

Security Dealers Association

Broadway, New York 4, N. Y.

HAnover 2-0433

NY 1-4722

major section of Cenco
research, development and
production of special instruments
for industry.
It does considerable
research itself, but is particularly
is

its

fortunate

in

has made

to share

the

results of

a

at

regular commission

rates

license
with

through and confirmed by

and

clair

Oil

The

25

National

Association

of

Security

Dealers

Broadway, New York 4, N. Y.




tain

Oil

Corp.,
and

lines

with

engineered

which

records

of

Co.

UNDERWRITERS AND DISTRIBUTORS

Sin¬

researched

in

Working along
Sinclair, Cenco
a
Gravitometer

and

OF INVESTMENT SECURITIES

Indiana,
and

which it
merchandises cer¬

instruments,

these

©

agreements

under

their laboratories.

has

large
exclusive

has

Petroleum

produces
Members: Principal Stock Exchanges of Canada

It

royalty

Standard

Phillips

it

in the research

f

throughout the United States and Canada

number of very

corporations.

Orders Executed

arrangements

Correspondents in principal cities
■

directs

the

Dominick
Members New

&

Dominick

York, American & Toronto Stock Exchanges

14 WALL STREET

be

representative

laboratory testing, measuring, and
process

a

Stock

Exchange, Pacific Coast Stock Ex¬

especially effective in pre¬
senting their products to educa¬

Steel Output Continues to Increase

is

Co.

York

and

Steel producers will return to the

B

and

Manager,

Donaldson, Associate Man¬

member

and

dozens

Jerome

ager.

quality of soils, concrete and asphalt.
Cenco
has
also
a
new

comb

the
bp

Ivan J.

for

schools; and Soiltest, Inc., out¬
standing manufacturer of instruments

bv

Carroll,

.manufacture

a

manufacturing plant at Breda, in
erly equip a high school general Holland, acquired on
extremely
science
laboratory.
In
addition attractive
terms,
and
enjoying
there is the burgeoning demand of most favorable labor
wage scales,
.colleges and universities for scienGrowth stocks today are in high
tific

ets have all been increased. Cenco

be weeks before normal

in

look

million

field.-

brighter

never

were

The first;
some

this

sider that it takes $30,000 to prop-

on

before and

But

in

fabulous

"The Iron Age" reports that steel's
startup under the T-H
injunction is going ahead faster than even the optimists
predicted.
This is because of three factors: Advance
planning in the

workers.

factor

are

no„nred

Senior Partner of Dempsey-Tegejer & c0
Mr. Tegeler also stated

and

are

•

This,' Mr. McDonald hopes, would put irresistible pressure
steel, as the one remaining holdout, and force a
settlement,

than

has, for 64 years, been in in due course, to manufacture 73%
of supplying scien- of the dollar volume of its sales.
laboratory equipment to
Cenco has not only been growschools and colleges. Today Cenco ing
internally, but by the merger
Instruments Corp. is the dominant route as well.
In the past year it
business

tifie

now

.

Meanwhile, "The

Cenco

the

NEW YORK

the
of

Financial Chronicle

The Commercial and

6

12/9/59,. Negotiated type
National City issues have beem scarce this
issues. The fact that the Bank
Lehman
Brothers fall/ There . continues to be
issue Calendar is build- group. The interest, cost to none ready for the market at
up at a relatively high the State was 3.481'/. The this writing.
• ' * ; Ti%; :-

new

-

new

ing
'rate

exercise

to

more

market

•

More

their market deal-

set aside as a cur-

seems

rent

Tor the past two weeks there investors
has been an absence of im- caution in

First

the

aggressive in their bidding for to

MACKEY

BY DONALD D.

immediately awarded at noon, Wednesday for

became

dealers

TAX-EXEMPT BOND MARKET

Chase Manhattan
bid was 3.49'i.

•

receivnot being sold with the,samie(speed

that

had

some

time. These included the

been

for

apparent

.

scheduled

issues

"Am.

the

Exchanges, have
announced the opening of a direct
trading wire to G. A. Saxton &

Cullen//J>/j.TL--/--'-j-;-'''

.,

oi

'

...

...

which

be

an-

Chronicle

s

viduals,

High

>rospect had been formidable

along

right

impact

on

tions

factors

As

variety and dealers and
lraders often treat them ac"

*?•.*-'»»'»down
point oi

za&s&zjss

Monday

on

were

a

jn

a

search for

more

world

S.

U.

are.

the

the' fearful of course, of the accustomed

but

the municipal mar-

ket occurred
•

market

These

must

the

income

On

Tuesday

Delaware bonds

of

subtle State

1960-1974

2 -30 000

1962.1982

<Stati'oU::/W

7,000,000

1961-1999

—

11:00 a.m.

:;Nooll
10:00 a.m.

__

_

_

L
/••• ,
.
$16,350,000

proposition.

1,300.000

3,;N. Y..__

Del.1,000.000 1960-1993/ 11:00 a.m.
Niagara "county Water Dist., N. Y.
5,100,000 1961-19902:00 p.m.
Oyster Bay and North Hempstead
' - • • • *. _ ,
_ ■
0 .
m
Union Free Sch. D. No."15, N.
1.288.000 1961-1989 ^2.00 p.m.
pa
*•
24,780,000 1961-1990 Noon
WalpoleLMasSi: ^__ 1 _1,910,000 1960-1979 11:00 a.m.
Woonsocket, R.
: 2.290.000 4,959-1979. 11:30 a.m.
' .1.>
November 24 (Tuesday) V '
L
',

comnoiinds
compounqs,

in romp

pypinnf

;

New Castle Countv,

expanding economy .- it
generate. Dealing in tax

exempt

Free Sch. Dist.

IncHa^apolis Redevelopment Dist.,

No.

and

leadership

:/";f :

(Thursday)

November 19

••

Huntington Union

from the maintenance of

rive

jounced today (Nov. 19). -The lately shown little change.

/

w

some-

equating the forces that de-

Gr.|de Bond Index whjch has

■

includes name of porof issue,' maturity < scale,s.and^houri-a^-.which
bids will be opened. ,
; ;.v/,-,•

practic2,.may contime as
no
less than indihave trouble in

for

dealers,

A ^Commercial and

Financial

.

will

Scheduled ; For - Sale -

Unfortunately.- wc rower, amount

none.

tinue

New-:Ybrk,/under;Uhe

Co., lnc^^

supervision of WilliamvJ:-. Me¬

repeafedly to si 000 000 or more for which
market mdi- ■ipl»"uu'.vvur ■
lastin^/'benefit
" Information, where available,

believe this

about unchanged. This is veri-

of

Treasury cash financing, de.

„ails

of

york ancl Philadelphia-

Qf the New

Baltimore Stock

list ;the bond issues of
specific sale dates have been set.
f, p.
.
.
v.••'•••
- C

th°

to

caters

Hess,

groupsi.for,«w:thd/folloJ,ing?;tabulations:.: we

patent-

ignore

for

$2,000,000,000

seems

issues

month back when yields were
generally more generous. Al''sale in the current week; though the level of new issue
A, T. & T.'s mammoth $250 bidding continues higher, the
million offering on Tuesday; secondary
market level is
sizable volume of diversified

hew

Issues

si Larger

Competition among'the tax

.

and facility as was usual a exempt dealer

•>
—

/

sneetOmembers

•

general market was new issues although
abruptly easier for reasons ing fair reception, are

r*"

-

PHILADELPHIA, Pa.

,

the

.

Gr£lllt HctS

9 •
~
;
\Y 1^6 TO feSXlOn

seems

ings. Importantly there is the
sibility that next year's corpo- due 2002-2005 priced at par.
substantial enlarged float of rate capital expenditures may/, No important new issues
bonds in the Street. This has be
greater than in 1959, but have been added to the Calenincreased close to $100,000,- that the market may be called dar during the past week but
000 during, the past six weeks,
upon
to supply less, of the numerous, small and relaOn Oct. 2, the total of State
necessary funds than will be tively
unimportant-i ssues"
have been overtones of firm- and municipal bonds offered
the case this year. This results • have been accumulated. The
Less and even
strength, par- in* the -"Blue List" was $169,- from the " fact* that a
-larger-largest issue ahead continues
t'cularly in the new issues.'
881,000. Currently, the total
proportion of corporate papi-/to bei$100iOX)0-000.,State of
On Monday of this week 1S
$263,4/0,215. Moreover, tal requirements will be gen- California bonds scheduled

municipal
underwriting due to the tradilional holidays in the midst
of each week. Although the
rnunicipal market gained
.ittle during this period, there

>4

vwi:"

JTgSS

in.; bidding The longest normal coupon
the pos- bonds were 3.70obligations

pertinent

considerations

competing

consideration. Bank group

•

portant State and

•

Thursday, November 19, 1959

.

.

.

(2098)

were awarded to Adams countv S. D. No. 50. Colo.
1,600.000 1961-1984 3 7:30 p.m.
Morgan Guaranty Trust-; Alabama Highway, Authority. Ala. '10.000.000 . 1961-1980 .11:00 ,a.m.
Kuhn. Loeb & Company-Kid-. Boontojv School District, N. J.'2,U0,0M
ji?:52§-S*
vious market symptoms that 000.000 Telephone financing,
rli^r
Ppflhndv ' Rr
Cornnafi'v Boston Metropolitan Dist., Mass'--1,801,000 1970-1990 11.00 a.m.
der,
Feabodj^
iL
^Pany
Cumberland,County,
Maine!1,000,000
-1960-1979
11:00 a.m,
might cause both dealers and State and municipal bond _group. Scaled to 3.3p /t; the Escambia Co. Special Tax Sch. D. -,.v 1 - -V . s

two

in

instances.

many

There

were

and still

influences. Following the im-

-

are

(1960-1979)

ob- mediate

MARKET ON REPRESENTATIVE

success

the

of the $250.-

bonds

SERIAL ISSUES

.

California

(State)—________

Rate

Maturity

Bid

3.70%

3Yz%

1978-1980

Connecticut (State)
New Jersey Highway Auth., Gtd.__
Lew York (State)

3%%

.1980-1982

3.45%

3%

3.50%

3%

1978-1980
1978-1979

Pennsylvania

3%%

1974-1975

3y8%

1978-1979

3.30%
3.25%

1977-1980

3.40%

_______

(State)

7ermont (State)
Lew Housing Auth.

__

__

(N. Y., N. Y.)

Cincinnati, Ohio
New Orleans, La
Clneago,111.

_

____

_™.

bi\v York City, N. Y..____.„;_,_
November 18, 1959
DOLLAR

BOND

33/4%

1978-1980

3.85%

1980

3.65%

3.25%
3.70%
3.50%

3y2%

1930

3.50%

3.30%

3%%

1979

385%

3i70%

3v4%

1977

3.95%

3.80%

3%

1980

4.05%

3.95%

—

Index

=

3.46%

QUOTES AND RELATED INFORMATION

(Prices and yields

Chelan Co., Wash.

3.30%
3.35%
3.35%
3.15%
3.10%

3V4%

3^2%

Angeles, Calif.
Baltimore, Md
cos

3.45%

by investors.' About Fort;Wayne;
3.55% 34.000,000 remain in account,
Asked

are

Offering

Net Changes

(asawngle)

Price

Price

from Prev. Week

Yield to
Maturity

PUD No. 1

,
•

mk

951/2

<*'

4.24%

86

_11A

^ 070

miSrai'Sia/''
RUwb rat'Sway
tnSS'Sw'a,

5"1'1966
I'1""65
M-19'8

103
^
104,4

»

-'/?

31/2% 1-1-1994

1-1-1962

12'k

103

ex

Jacksonville, Fla. Exp.

Kansas" TurnS Authority

(ffi/SaiyMackinac Bridge
4% t-1-1994"
Maine
Massa

Authority

-«

-h/2

4.90%

90i/2

CO

3.90°o

(*)

90

-ateUs'Turnpike

1'1"1'58

104

831/4

5-'-1962

10%

Ke^jcr/ey'Turnpike
A'ew^Vork"Power

Authority

m'm
7-'-1958
1"14963
*""»

104
103,4
103
103

7-1'19M

" '

Authority

f.'e3y2Y?rk1Po"r!Artlioiity
f.'ew'v^rkVhNayay Authority
Pennsylvania

6-1-1959
*WM'

Turnpike Authority

f-wS-Pe'Surg

VurVpite-'--

-rf.'S Projert,5'calif.
3.05%

7-1-2004




-

8'44

Tuesday also.
Wake County,"

$4,250,000

Carolina

North

tos Angeles County,. Califs-—
Salt River Project Agric. Improv't

On

sold.

bonds

0

~'2

5.10%

-1

4.32%

were

sold toThe Harns

was

3.424

(<

.

$1,500,000 of bonds-

Less than

remain in account.
On

and Power District, Ariz.______

(1961-

~

Wednesday, First Bos-

,

-

10,010,000 1962-1986 Noon
l,49o.000 1961-1989 8.00 p.m.
2,444,000 ; 1961-1980

1963-1992

15,000,000

Peoda Public Building

Los

N. J.__

11:00 a.m.
7:30 p.m.

December 3

Al1geles County, Calif

-

13,000.000 ,1959-1999

9:30 a.m.

(Thursday)

Marple-Newtown Joint School
______

2,110.000

Willoughby-Eastlake City School

onnnnn

Authority, Pa.

1961-1965
1nc1

1ft__

1,200,000 1S61-1975 Noon

D»tnct, Ohio

"««.

4.63%

3.748L

3-55%

scaled to

851/2

-2

3.97%

on

-!4

4.13%

1031/2

86

-Va

3.83%

103

84t/2

—I'/z

4.12%

bonds

103
1031/2

821/2

»•

4.05%

7-M'63

821/2

7-1-1959

104

9-'-195'

105

The Fairfield Local S. D., Ohio/
1,493,000 1961-1982
yield.
December 17 (Thursday)
The week's most important Midland, Texas
3,110.000
issue, $55,125,000 New York
January 6 (Wednesday)

4.43%

891/

1

82/2

88

'

,

10TO/

1

3.87/o

<"

3.™

8:00 p.m.
AT

Corporation

+«

.

10:00 a.m.

1960-1984

-

—

1961-1979

4,800,000
1,120.000

Comm., 111.

and associDecember 7 (Monday)
ates
were
high bidder, for Kane Co., Sch. Dist. No. 129, Hi—
1,215,000 1961-1975
$12,000,000 Los Angeles, CalDecember 8 (Tuesday)
ifornia "Dewap" bonds J1960- Puerto. Rico (Commonwealth of) __ -20,000,000
1960-1979,.
1989) at an interest cost of
December 9 (Wednesday)
ton

1:00 p.m.

.

December 2 (Wednesday)

Savings Bank-Wer- Savreville,
Company-B. J. Van '
~
cost

interest

__

_

Edwardsburg Con. Sch. Dist., Mich,

thmi
than

Ioqc
less

1961-1963

3,411.000

^

**

Virginia Toll Revenue

.

4-57

'

Autiiority'

ho
be

in
to

&

74*

108

qiirl
said

is

V

December 1 (Tuesday)

Chicago-Kuhn,, Loeb & Company
and associates. .. The Columbus, Ohio

Ingen & Company group The

4.03%

1-1-1964

'

of

theim

(*)

Turnpike Authority

Bank

538%

104

103
103
104

National

First

• 9.00 a.m.

November 30 (Monday)

w.lfhil1gton University; Mo..-—- -

5-5»
,

1960-1984

-

3:00 p.m.

&

0

11:00 a.m.
2:00 p.m.

Wash.___----—1,500,000

Tuesday, Boston, Port of Tacoma,
Massachusetts, awarded $5.on

I rust

a

9:00 a.m.

1961-1989

7,300,000

1961-1970

000. Also

1980)

4.40

11:00 a.m.
Noon

21,500,000 ; 1961-1985 ,
3,000,000

Pittsburgh School District, Pa._'_-_

4.11%

—11/4

7-1-1967
10-1-1962
7-1-1960

,

11/

/

Bar-

Company -Smith,

1-800'000 .1961-1990 Noon

1,300,000' 1961-1869
" 1,170,000 1961-1980

District, Calif.

Bank-Bankers

3.97/o

84

■.

11:00 a.m.
* Noon

half

103V2

4
»•

•

Devine Portsmouth; Va.
6,800,000 1961-1985
Scaled Providence, R. I—4,550.000 1^-4981
to yield 3.3(F7
the reported Santa Monica Unified S. D., Calif.
2.o00.000 1960-1979
balance is less than $4,000,November 25 (Wednesday)

4.47%

4-1-1962

———-

ney & Company-C. J.
& Company syndicate.

<">

1/4

hington

through the Chase Los Angeles School

market

Trust

Ind._

(1960-1979)' came Krioxville, Term.

Manhattan

i^iin
ssue

Authority
31/4% 4-1-1995
arant Co., Wash. PUD No. 2

90

bonds

4.55%

'04?i

J'Turnpfke

lina

-<k

M-U74

Alorid

310,000,000 South Caro-

the

Call

105

Also

80°,000 bonds (1960-1979) to

'

approximate)

First Callable Date

mo

ceived

to

r 10:00 a.m.
' 1259^'4?:'0-0

.1960-1978

favorablyre- ./No.!,'1—..4,000,000

were

•

t

The

.

b,onds

were

100,000,000

California (State of)

yield. Also. La Fourche Parish, La._'__
Wednesday, Halsey, Stuart
' - December 11
a

3.80'v

-

named

scale

coupon

was

to

a

with

31 2 C

the

10:00 a.m.

1961-1980

10:00 a.m.

bonds

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

December 15 (Tuesday)

.

Noon

3.50%

—

State

________

1961-1985

1,000,000

(Friday)
& Company with associates, Florida Development Comm., Fla.
2,000,000 1961-1972
were
high bidders for $2,296,December 14 (Monday)
000 Poughkeepsie, New York Port of Portland, Ore
2,000,000 1960-1979
(1960-1988)

7:30 p.m.

(1960-2009)

was

Sayreville, N

J

4,435,000*

2:00 p.m.

Volume

190

Number

5900

.

.

The Commercial and Financial Chronicle

.

(2099)

7

J. Talcott Names...

fortunes depend almost wholly on
the peace issue.
If' Khrushchev

and

Two Vice Pres.

continues

berries in Wisconsin and put them
under ban.

James

Talcott,

Herbert

after

Chairman,

...Ahead of the.News

and

measurably help Nixon,. But let
do something to destroy the

BY CARLISLE

BARGERON

nounced

the

election

of

J.

Presidents of the firm,Mr.

Despite

the

fact

that ..among

the

several

professionals Vice-President Nixon
to

seems

be

overwhelmingly

Coy has been in the credit the lead for the Republican Presidential

norni-

get"

;

\

mt

even

in

some

■

'

-

Rockefeller Bfe' il-'Jl
!

will

ndrJ

*•'

I

Urof^cV;

TUp

man?
J.

is

a

But

on

up

chev's visit

over

here and this has

Carlisle Bargeron

♦

,

nnmi-

.

than

more

elected

20

He

years.

Assistant

as

President of James Talcott in 1955.
Mr.

Coy is in charge of the North

East

and

Middle

Atlantic

States

Department of Talcott's Commer¬
cial Finance

and be
owes

Division, serving in¬

,.,uu

.•„ +—i

a

Mr. Lochan
cott

since

auditor

has been with Tal¬

1946

in

and

1947.

appointed

became

In

u„i

t^-i

mark asainst him

be

a

In the event

"wronf therein
so's."

chorus of "I told

you

the meantime' there

his election to Democrats and

is the

ai,

want^ny

the Commercial Finance Division,
now is in charge of the Metro¬

morn

mergers and acquisitions.
elected an Assistant Vice-

was

President in 1957.

than

have

little

cancer

wear

R&
left, Mr.

swung over

to the

Republican side and for the past

Paine, Webber Firm
SAN

FRANCISCO,

well-known

San

nessman.

who

after

years

48

C

a

Wisconsin
but

they

also

had

not

has

cranberries

been

found

to

freer to leave Nixon, it is argued.

be

The wily Khrushchev holds Nixon's fortunes in the palm of his

Nixon and Kennedy partook of heavy dosages of

hand and

cranberries

he does not like Nixon

This is to say that Nixon's

contaminated.

So

at

separate

political rallies,
to

show

their

dence in them. Now, the

confi-

pure

food

of

and

H.

Freres &

elected

This announcement is neither

banker

of

partner

an

offer to sell

The

Lazard

nor a

solicitation of an offer to buy

year

service

with

369

Pine

Street,

as

a

He is Charles W.
who for

23

years

Goodwin, Jr.,

was

San Fran¬

Northern California and Northern
and Western Nevada.
After nine
months
win

of

retirement, Mr. Good¬

decided

to

enter the

securities

ment

in which he

business,

has

Mr.
of

the

Goodwin

is

Northern

trical

Bureau,

life member

Electrical
rector

of

the

Pacific

Association,

and

Manufacturers'

life

and

member

of

Co,, New York
Mr.

ing

career

to

rose

San
of

the

as

hattan

tors.

Vice-President

a

of

the

Chase

Since

1948

Twenty-Seven

Vice-President

Center, Inc., President and

Dated Novem ber 1, 1959

Rocke¬

Director of the Lazard Fund, Inc.,
a
Director of the U. S. Borax &

Chemical
surance

Interest

Mutual

Insurance

Seamen's

Bank

for

Price 102.25% and Accrued Interest

Savings in New York.
Stewart

board

in

joined

also

the

LOF

until his

1954 and

elec-

-

the New York bank

tion to head
was

payable May 1 and November 1 in New York City

Corp. and The Sun In¬

the

and

Mr.

Due Novem ber 1, 1986

Co. of New York, Trustee

Atlantic

of the

Year 5V

has

been

of

~

Man¬

he

feller

Co.

of these Debentures.

American Telephone and Telegraph Company

and

messenger

a

Bank.

>

General. Partner

a

of

Lazard Freres & Co.

Copies of the Prospectus may be obtained in any State from only such of the
undersigned as may legally offer these Debentures
compliance
with the securities laws of such Stae.■

Phila. Investment
Women

to

Pa.—Robert

PHILADELPHIA,

.

Hear
J.

Simpson, Jr., Assistant Investment

Officer,

Fidelity-Philadelphia
Company, will speak on

Trust

"Steel—A

third

the

Growth

Industry?"

session

of

the

at

;

MORGAN STANLEY & CO.

1950-60

Investment Analysis Program pre¬
sented by the Educational Com¬

BLYTH &

CO., INC.

GOLDMAN, SACHS & CO.

GLORE, FORGAN & CO.

mittee of the Investment Women's
Club

of

Philadelphia in

with

tion

the

Financial

of

Philadelphia

on

23

at

in

5:30

p.m.

Conference

HARRIMAN RIPLEY & CO.

Analysts

Incorporated

Monday, Nov.
the

Room

coopera¬

of

LEHMAN BROTHERS

Concourse
the

SMITH, BARNEY & CO.

delphia National Bank. Broad and
Simpson,

Financial
for

the

various

Analysts,

entire

is

of

WHITE, WELD & CO.

the

moderator

series

A. C. ALLYN AND COMPANY

A. G. BECKER & CO.

HEMPHILL, NOYES & CO.

HORNBLOWER & WEEKS

,

aspects of the investment

-

LEE HIGGINSON CORPORATION

With United Securities

.

fSpecialto The Financial Chkoniclf>

now

with United Securi¬

ties Company.

-




W. E. HUTTON & CO.

*

covering

ROCKY MOUNT, N. C.—James B.

DREXEL & CO.

Incorporated

F.S. MOSELEY & CO.

PAINE, WEBBER, JACKSON & CURTIS

field.

Stepp is

CO.

STONE & WEBSTER SECURITIES CORPORA TION

Incorporated

member

a

LAZARD FRERES &

Phila¬

Chestnut Streets.
Mr.

KIDDER, PEABODY & CO.

Xovem her IS,

1959.

,

,

DEAN WITTER & CO.

and

Coast
of

di¬
the

Francisco
National

Association of Electrical Distribu¬

,

began his bank¬

become

Director

and

Nov, 2.

on

Mansfield

Elec¬

past

member

Club

$250,000,000

Trust

President

director

past

Electric
life

past

California

Glass

the

field

terested.

vacancy

dent of

invest¬
a

always been in¬

Co., New York, has been
- director
of
Libbey-

the

o£

cisco District Manager of the elec¬
trical
supply
company
serving

offer is made only by the Prospectus.

Company, to
resulting from
resignation, of
Charles
J.
Stewart, who took office as Presi¬
the

office

& Curtis,
registered

representative.

a

Owens-Ford

fill

any

A

General Electric Supply Company
has come out
of
retirement to

"

Mansfield,

general

—

busi¬

last

Named Director
Richard

1 i f.

Francisco

retired

Qn

either.

more

have.

I

Chasu Goodwin Jr. Joins

camn

n r e

Since Sherman Adams

politan Area Department of the
Division, which specializes in fi¬ Eisenhower has

nancing

of

i

Ojegon and Washbai?Ped

caLht Tn the Rofkefelle?
marke*. because they had been
^fucha continSencv As time fP1^^
with an insecticide which
had been found to induce
. -t b|
y' a^Darent in rats.

i

and

He

ingt?R'

fnfnk nffnn^hp narto/Efsenhower "that Mr' Eisenhower will serve out
Ppn!hi!ln fp
rWt' his term> the professionals will be

was

account executive in

an

of two states>

chief

he

1952

to

seem

chance

.

elected, he will feel that he

Independents as much as he does
to the Republicans and be thus
governed in his patronage. After

dustrial and commercial clients.

it

would

•

Vice-

*

being so hazardous
is, you wonder why Senators
Hubert
Humphrey and
Stuart
Symington are running when they

.

field for
was

to eat¬

come

The business

as

s
probability that every time Nixon
and
will
ap- "
•,
eie are_manZ s5re^?.obseIv: or John Kennedy, the front runpoint Republicans to office. There u1JLwhAsay
?
ug that ner among the Democrats, gets a
is a feeling that Rockefeller is too b°lds
^. hf professionals behind pain in His stomach, he will bemuch like Eisenhower, that in the
Sx01? 1S tbe Possibility that Mr. come nervous. They were in Wisevent he should get the nomination Eisenhower may die in office thus
Consin at the time the cranberries
.

run

Presidency. Kissing babies
usually the politician's stock in

trade but now it has

ent
cashing in
on
the
cut
ccismug
in
uu
uxe
spirit
spirit
ui
of
camp David.
He is inextricably

,

WMKMIn

real

Republican,

Coy

hazardous business to

a

ing contaminated cranberries.
1

confirmed by the President.
But all the same, Nixon is at pres¬

9,000,000

were some

cran¬

been

willing to place

Rnekefpller's

to

sion of the invitation for Khrush¬

re^"tnt" , H, eveF
these independents voted for the

hfi.infrtv
James

as

good

for.

want

eyf.n bets ?,n Rockefeller's nomi- associated with the Khrushchev
nation say it will eventually dawn visit in the public mind, which at
uP°n the .Republican regulars that this time is a political asset. There
a Regular Republican simply can- is no telling whether it will be a
^ w"\v A recent Gallup poll year.from now. -'

ficans; There

1.

Sidney Lochan

to

contaminated

^<™ showed there were some 55,000,000 . Rockefeller is known to have
t'-fC'.'M 'rfgls^<7,r1e5n^«mocr?t? and
y frowned on the visit, hence as long join the San Francisco
'about 31,0.00,000 registered Repub- hs" it produces^'good feeling,'it is Paine-1 Wbhliei1, Jackson

the

-

nets

are

is

.

BEIL*'
NpTnn" BSF^ f*

that

been
any

•

even

in-

odds

has

'

.Those who

•Washfn^t'on*
stance

he

shortly after he entered office he
even toyed with the idea of forming an Eisenhower party.

nation you can-

Still

months

good a Republican as
Republican could ask

in

chances

get too closely
with Khrushchev, either.
He has repeatedly stated that he
had nothing to do with the exten¬
tied

Vice-

as

It is

be destroyed.
Strangely enough, Nixon doesn't

seem

an¬

James

Coy and Sidney Lochan

Nixon's

and

some

for the

would

pendent commercial financing and

factoring organizations, have

issue

peace

\

good boy until
election, it would im¬

the

a

him

R.

Silverman, President
of James
Talcott, Inc., one of the
country's oldest and largest inde¬

be

drug administration has also

found

,

to

The Commercial and Financial Chronicle
8

.

Thursday, November 19, 1959

.

.

(2100)

porated, 20 Broad Street, New York 5, N, Y.

DEALER-BROKER

is

memorandum

a

Co.,

Budd

on

and

ratio

Also available

report

a

United

on

Co.

like

INVESTMENT LITERATURE

Basic

Report

—

—

AND RECOMMENDATIONS

New

Corp.,

Greyhound

UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

IS

THE FOLLOWING LITERATURE:

TO SEND INTERESTED PARTIES

Bros.

Bemis

stands

Co,—Memorandum—Scherck, Richter

Bag

Manufacturing Co.—Memorandum—H.

Binks

Com¬

and

tive

Trust

Companies

of

United

the

institutions

leading

of

figures

New York Hanseatie Corporation,

5, N.

as

States—Compara¬

of

Sept.

1959—

30,

120 Broadway, New York

Y.

Burnham View

Monthly Investment Letter

—

Burnham and

—

Company, 15 Broad Street, New York 5, N. Y.
in current Foreign

able

traffic

Cement

to

Company, James Building, Chattanooga, Tenn.
L. A. barling Co. — Bulletin — Moreiand & Co.,

ducing

Industry—Analysis—Reynolds &

Co.,

Broadway,

120

Tire

eral

&

outlook—Harris,
120 Broadway, New York 5, N. Y.

Co.,

Chemical

Upham

oi

&
•

Stocks—Analysis—New burger, Loeb & Co., 15 Broad

Street, New York 5, N. Y.
Department Stores, Mail Order Houses and Specialty

Report

Edwards

—

&

Hanly,

North

100

Stores-

Franklin

Street,

Hempstead, N. Y.
Japanese Stock Market—Study of changes in postwar years—
In current issue of "Nomura's Investors Beacon"—Nomura
Securities

Co., Ltd., 61 Broadway, New York 6, N. Y. Also
a review of the outlook for Plant and
Equipment
Expenditures
in Japan for 1959 and brief analyses of

available is

Mitsubishi

Heavy

Cement Co. and

a

Industries, Nippon Flour Mills Co., Iwaki
survey of the Steel Industry.

Japanese Stocks—Current Information

Company of New York,
New

335

Oil

Inc.,

Ill

Broadway, New

York.

Natural

Industry—Review—Doherty

York 7,

%

'

Gas

Securities

Yamaichi

—

Roadhouse

Co.,

&

Bay Street, Toronto, Ont., Canada.

in

& Co., Houston
Club Building, Houston 2, Tex.
Also available are reports
on
Santos, Ltd. and Delhi Taylor Oil Corp.

Oil

«

52

Securities—Review—Hardy & Co., 30 Broad Street, New

York

4, N. Y. Also in the same circular is
of Distillers Corporation-Seagrams Limited.

brief analysis

a

used

circular

Poly

Averages, both as to
20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4. N. Y.
v\v '
and

market

performance

over

a

..

Over-the-Counter

Securities Handbook

Containing data on
more than 925 over-the-counter
companies—Over-the-Counter
Securities Handbook, Department G, Jenkintown, Pa.—$7.50

Profiting

From

Tax

—

Losses—Bulletin—Shearson,

Hammill

Railroad

available
Steel

is

4, N.

Y.

Also

available

is

memorandum

a

on

Toledo

Scale

Corp.

Southern

livan

&

Insurance

*

•

Seventeenth

Street,

Denver

Colo.
Amerada

Petroleum

Corp.—Memorandum

—

Merrill

On Aug.

5,

Insurance

Company—Analysis—Blair

&

Co.,

Incor-

31, cash and cash equiv¬
to 361.8 million

amounted

and current liabilities

were' $115.3

capital

working

Net

million.

amounted to S16.8 million as com¬

with

pared

million

$21.5

This

date.

1958

like

flow from

on

year's

the
cash

depreciation of approx¬

imately $45 million should be well
above

maturing obligations of $29

million.

Wil-

COMING

Hentz

&
a

Co., 39

IN INVESTMENT FIELD

Natural

Gas

Company—Analysis—Guae, Winmill &

Nov. 29-Dec. 4,195.9

Blaha

N.

&

Y.

Investment Bankers

Association

Annual

Convention

Americana

Hotel.

Dec.

the

at

(New Y-crk City)

15, 1959

Association

Investment

Co.

Sperry Rand—Review-Ira Haupt & Co.,
York 6. N. Y.

Unilever

Bui Harbour,

Co., 2909

Bridge Plaza North, Long Island City 1,
Also available is a memorandum on Sterling Tele¬

vision

<

Fla.)

Inc., 50 West 57th Street, New York 19, N. Y.
Chemical Products Inc. — Memorandum—Walter R.

Stores, Inc.

N.

115

South

—

Ill

Broadway, New

—
Piper, Jaffrav &
Minneapolis 2, Minn.

Schirmer, Atherton & Co.,
Congress Street, New York 5, N. Y.
Match—Analysis—Shaskan & Company,
40 Ex¬
change Place, New York 5, N. Y.

Vornadc—Analysis—John
New York 5, N. Y,
-

H.

&

at

Texas

Co.,

120

Broadway,

Tex.)
Investment

(Dallas,

1960

6-7-8,

April

—

Kaplan

New

of

Dinner

Annual

Starlight Roof, Waldorf-Astoria.

Memorandum

Seventh Street,

V— Memorandum

Ninth

York

of

Group

^

Bankers Association of America

50

Lynch

Y.

equitable distribution

more

a

costs.

alents

Spector Freight System, Inc.—Memorandum—Harshe-Rotman,

2,

Also available are memoranda on Brunswick
Balke
Collender Co., Controls Company of
America, New England
Electric System, Northern Pacific
Railway, Simmons Co.,
Travelers Insurance Co.

American

of

Universal

Pierce, Fenner & Smith Inc., 70 Pine Street, New York
N.

9235

Railway—Memorandum—H.

•

Co.—Memorandum—Bosworth, Sul¬

Company, Inc., 660

for

Co., 1 Wall Street, New York 5, N. Y.

Hopwood,
Life

Railway Express plan which calls

Seconal Bank State Street Trust Co. of Boston—Memorandum
V-Harrimart Ripley & Co. Incorporated, 63 Wall Street, New
York. 5, N. Y.
•
• •'
V-. ■

Super Valu
*

Academy

service and prospec¬
from the modified

ferry

benefits

tive

Speedry

on Thermo King Corporation.
Good body & Co., 2 Broadway, New York

—

Inc.,

Co.—Memorandum—Jacques Coe &
Broadway, New York 6, N. Y.

report

a

Francisco

Co.,

&

Electric

Sangamo

Companies—Analysis—A. M.
Co., Inc., 1 Wall Street, New York 5, N. Y.
Also

—Analysis

year

Hills, Calif.

Co., 72 Wall Street, New York 5, N. Y.
Also available is
on
Twentieth Century-Fox Film.

Equipment and Leasing

Kidder &

San

Louis

service last

by $18 to $34 million

memorandum

&

Co., 14 Wall Street, New York 5, N. Y.

Shore

Kellogg Company.

on

Inc.—Report—Alkow

shire Boulevard, Beverly
St.

passenger

Sorg Paper Co. and Weco Products.

data

are

re¬

will be extended. There is
expected to be additional savings
from the elimination of the West

(Kalamazoo,

on

Industries,

in

year

Pepsi-Cola Company—Review—The Milwaukee Company, 207
.East Michigan Street, Milwaukee 2, Wis.
Also in the same

in the National Quotation Bureau

yield

•

Broadway, New York 6, N. Y.
Mich.)—Report—B. C. Ziegler
and Company, Security Building, West Bend, Wis.
North Shore Gas Co.—Memorandum—A. C. Allyn & Co., 122
South La Salle Street, Chicago 3, 111.
Also available are
College

active

been

mileage which amounted to 17%
iri fhef first -seven months of this

Schweickart & Co., 29

Over-thc-Counter Index—Folder

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks

the

Street, New York 5, N. Y.
1 .;
>
Distillers & Chemical Corporation — Report—

Nazareth

has

year and further
reductions
anticipated. It is indicated that
cut in unprofitable passenger

last

Wall

National

The

its own supplies for
equipment repair.

reduced

was

Cement

Co.—Memorandum—Merrill, Turben & Co., Union Commerce Building, Cleveland
14, Ohio.
Ducellier-Bendix-Air Equipment — Memorandum—Model, Roland & Stone, 120 Broadway, New York 5, N. Y..
* •/
=■/'
Electronics Capital Corpoiatipn—Analysis—Wm. H. Tegtmeyer
& Co., 39 South La Salle Street, Chicago 3, 111.
First National
Stores—Report—Alkow & Co., Inc., 40 Ex¬
change Place, New York 5, N. Y.
II. J. Ileinz Co.—Memorandum—Green, Ellis & Anderson, 61
Broadway, New York 6, N. Y.
Ileyden Newport Chemical Corporation — Analysis — Hayden,
Stone & Co., 25 Broad Street, New York 4, N. Y.
Hugoton Gas Trust*—Memorandum—First Trust Company of
Lincoln, 10th & O Streets, Lincoln 8, Neb.
Hunt Foods and Industries,
Inc.—Report—Halle & Stieglitz,

memoranda

Australia—Review—Dempsey-Tegeler

an

are

Portland

Diamond

Rubber Co.

Industry—Analysis

icit.

Industry.

New

Chemical

Penobscot

Wall Street, New
analysis of the Chemical

increase.

to

its sizable passenger def¬
The out-of-pocket expense

from

Also available is

5, N. Y.

augment
Central

Building, Detroit 26, Mich.
York

and probably will

needs additional steel

its shops for

Dayton Rubber—Analysis—Bache & Co., 36

York 5, N. Y.
Also available are reports on Ferro
Corporation and Borg-Warner and a memorandum on Gen¬

begins

carrier also

Chrysler Corporation — Report—Thomson & McKinnon, 2
Broadway, New York 4, N. Y.
Coca-Cola Bottling Company of New York—Report—Elder &

Also avail¬

Letter.

is

which

10%,

increased in coming months as

be

3, 111.
Banks

around

million monthly

M. Byllesby and

135 South La Salle Street, Chicago

Company, Incorporated,

Its bad order ratio now

at

relatively high for a carrier of
this
importance and volume of
traffic.
Equipment
expenditures
have been running at about $11.1

320 North Fourth Street, St. Louis 2,NHo.

pany,

eight
under the

period.

program.

& Co., 52 Wall
Also available are memoranda on
England Electric System, Siegler

Corp., Southern Pacific Co., and U. S. Gypsum Co.
IT

first

points

tral

Inc.—Memorandum—Van Alstyne, Noel

Street, New York 5, N. Y.

the

for

2.7

or

1958

During the steel strike the Cen¬
reduced its car maintenance

Harbison & Henderson, 210 West
Seventh Street, Los Angeles 14, Calif.
&

Armour

47%

to

months

Asbestos Corporation Ltd.

annual

25th
*

meeting

the

at

Sheraton Dallas.

(April 8, 1960
New York

(New York City)

Security Dealers As¬
annual dinner in

sociation 34th
the

RAILROAD SECURITIES

Grand

Ballroom

the

of

;/ Hotel Biltmore.

-

;

New Officers Elected for

E. F. Hutton 25-Yr. Club
The

New York Central

Firm

way,

New

York

suffered

steel

(a) Operating Utilities

ence

System

considerably

strike.

because

Central

of

on

This
the

from

was

heavy

has

to-year decline in carloadings be¬

the

gan

expected

carrier's

depend¬

industry

in

the

to narrow somewhat in Sep¬

tember

as

compared

with August

and the road also started to curtail

maintenance expenditures.
Central

service territory.

Twenty-Five Year Club of E.

F. Hutton & Company, 61

Trading Markets in.

started

at

a

the

elected
dent

Broad¬

New York City, members of
York Stock Exchange,

New

Charles

at

ner.

Other

the

R.

Hotze

Presi¬

group's annual
.•

officers

.

din¬

.

elected

are

Sid-

slow

pace
nev
Peyser, Vice-President, and
comparisons con¬ this year due to inclement weather William M. Mahoney. Secretarytinued favorable through July but in the first two months. However,
Treasurer.
Two
new. members,
the full impact was felt in August revenues climbed rapidly and in¬
and in that month gross fell al¬ creased 10.1% in the first eight Leo G. Adler and Richard G. Hen¬
derson
were
admitted into
the
most 8%. In addition, dentral did months as compared with a year
not curtail maintenance expendi¬ ago. Part of this gain is being at¬ club.
They received gold watches
tributed
to
steel
tures during
shipments
in
an¬
this period of the
from the partners of the 55-yearsteel strike.
Both maintenance of ticipation of the strike in the in¬
old brokerage firm.
way and equipment accruals dur¬ dustry which lasted longer than
Mrs.
Pauline < S.
Jaffa,
who
ing August were higher than in most expectations. The road has
the like 1958 month. As a result, improved its operating efficiency
joined the company a: its found¬
the
Central
reported
a
loss of so far this year in spite of higher
ing in 1904, was cited as the em¬
close to $4 million for that month wages.
Wages in the first eight
as
compared with a
small . net months were 78% of transporta¬ ployee with the longest service.
profit in the like 1958 month. For tion expenses. Larger gross, cou¬ Walter Watson, 95, honorary co-

./Year-to-year

(li) Natural Gas Companies^
I

raustuission, Production

&

Distribution

Troster, Singer & Co.

Members Neiv York
Security Dealers Association

74

Trinity Place, New

HAfiover 2-2400




York 6, N. Y.

Teletype NY 376; 377; 37f

road pled with the benefits of the con¬
rehabilitation
program
profit of tinuing
$5.7 million which, on balance, and the closing of some unprofit¬
was
still $16 million better than able passenger stations, enabled
for the like 1958 period. The year- Central to cut its transportation
the

first

was

able to report a net

eight

months

the

manager

of E. F. Huttcn's office at

650 Madison Avenue. Is

acknowl¬

edged to be the firm's rldest em¬
ployee.

Volume

190

Number 5900

.

.

The Commercial and Financial Chronicle

.

(2101)
the

I960: Springboard to
Growth or Inflation?
By Dr. Thomas G. Gies,*
'

.

In

calculating

$515

to

strike

a

S520

billion,

settlement,

spending will

buying and
the

offset

of

of

is

old

and

as

has

robust

the

market, deceleration

Federal

accompanying

Reserve/Board

Ameri¬

a

18

months

tion

booms

of

advance is

re-

un¬

total

eco¬

to

accumulation

continued

and

late

Price

estimates

the

1 as t"

reces-'
of
Prof. Thomas Gies

estimated"
billion

*

v

in

the

third

-

in

from

an

during the

pe¬

riod of recent business
expansion.
Two questions, appear'with in¬
creasing
frequency as we
ap¬
proach the coming year: first, will
1960

see

into

a

today's

made

turn

decline

with consequent
gains now being
production and income

reversal

and

expansion

of

in

of

large-scale

1957

gradually
balance of $5

•

to

an

annual

t

Nineteen

12

months

find

the

.

With

un¬

price-

these

influences

tralize

or

the

year-and-a-half " and

threaten

edge of

to burst

again
through the top

price charts?

our

prevail
fact

Uncertainty
the

of

gence

termination
based

the

the

steel

four

resur¬

strike is

developments:

the

leveling off in Federal Gov¬
ernment.. spending since the be¬
ginning of 1959; the gradual slow¬
ing of the
housing market as
mortgage credit tightens; disap¬
pearance of the aecelerative ef¬
of

fects

inventory accumulation;
development of a foreign
payments .deficit in the last quar-.
and the

at

1958

of

ter

least

which/has

to

midyear,

continued

1959.

Typically, as business expansion
develops into full-scale boom, the
pattern of increases is modified.
The forces initiating the rise tend
to play out and are replaced by
secondary growth factors. Thus,
the strong recovery of production
during the year ended at mid1959

sparked

important
increases in demands by govern¬
ment—Federal, State, and local;
but

was

the

as

by

progressed, suc¬
cessive
quarterly gains in this
area diminished, and in the most
recent
quarter, the growth im¬
pulse from this source had dis¬
appeared. State and local outlays
for street and highway construc¬
tion

fell

tions,

year

below

and

non-defense

seasonal expecta¬

Federal
items

spending
fell

or

mark

Two

addition,

of

the

from

tending to

quarter, following

the month-to-month slowdown in

housing starts beginning last May.
June, seasonally adjusted out¬

In

construction

declined for the first time in
than

a

ceeding

Kerbs, the Exchange
Alex Caplan* Paul C.
John

and

partner

the

beginning

coming

year

continuation

a

in

Kerbs,

Haney

investment

has

can

and

on

moved

to

fixed

765

Lancaster

Boulevard

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

any

of

COMMON STOCK

the trough of mid-

rising capital spending

($£

Par Value)

be expected to persist in 1960.
and industrial build¬

Commercial

1959, and has continued to in¬

Public

through the summer de¬
spite the steel strike. However,
the big push in capital
outlays

more

and during the suc¬
three months produced

year,




will be

in equipment rather than
construction, according to surveys
of
business
plans, as producers

emphasize

modernization

■

Offering Price: $17.00 Per Share

Copies of the Prospectus may be obtained only from such of the
underwriters,
including the undersigned, as are registered dealers in securities in this State.

dis¬

as

tinct from

expansion of capacity.
Spending for capital goods was
originally scheduled for $35.3 bil¬
lion

in

year,

the

has

this

of

these

I960.;'

this,

billion

While

postponed

of

the

15

fulfillment

second
business

demand.
Consumer,
spending has been a source of
strength since the beginning of
the recovery and by early fall of
last year had recovered all of the

decline from fall, 1957, to spring,
1958. For the past year, consump¬
tion has been moving to succes¬

highs.

Virtually

major

product groups have
impact of these demands

felt the
and

record

new

are

reflected

duction schedules.

major

household

in

rising

In

the

pro¬

case

appliances,

of

1958

and

Dean Witter & Co.

of

Allyn and Company Bache & Co. k. G. Becker & Co. Dominick ftDominick
Incorporated

Equitable Securities Corporation

Lee Higginson Corporation

Bacon, Whipple & Co.

Ball, Surge & Kraus

Blunt Ellis ft Simmons

The Illinois

Schwabacher ft Co.

Bateman, Eicbler ft Co.

Company

Incorporated

Blair & Co.

H. M. Byllesby and Company

Incorporated

Julien Collins ft

(Incorporated)

Farwell, Chapman & Co.

McCormick & Co.

The Milwaukee Company

Company

McKeivy ft Company
Mullaney, Wells ft Company

for

example, output has been stepped
up from 24 to 40% between the
quarter

Paine, Webber, Jackson & Curtis

Incorporated

major
factor in
picture is rising

consumer

all

k. C.

<

The

sive

Hornblower & Weeks

Company

steel

schedule, the full impact
demands will appear in.'

•

1960's

quarter

$29.6

earlier.

of

,

from

up

months
strike

final

William Blair &

The

Robinson-Humphrey Company, Inc.

Rodman ft Renshaw

the

quarter of 1959. Nondura-

bles
likewise
have
experienced
gains ranging from 10 to 30%.

Outstanding among all product
in this period, of course,
the impressive rebound
of automobile production / with a
whopping 66% gain. Third quar¬
groups

Straus, Blosser & McDowell

Carter H. Harrison ft Co.

Howard, Weil, Labouisse, Friedrichs
and

Mason-Hagan.lnc.

Company

has been

ter output was affected by model

changeover shutdowns, but output
schedules
(assuming
sufficient
steel) for the* final quarter of

Stern, Frank, Meyer & Fox

Wagenseller ft Bnrst, Inc.

Woodard-Elwood ft Company

under

the direction of Richard Bethke.

Barber-Greene Company

-

Co.

Co; has opened a branch office at

November 19, 1959

steadily

&

LANCASTER, Calif .—Fairman &

133,600 Shares

the

Kerbs,

Fairman Opens Branch

from

be

of

;

-

NEW ISSUE

the

of

S.

which will be dissolved Nov. 30.

Barber-Greene

neu¬

operating in the
stimulate

second

home-building

residential

A.

Mindnich

improvement in
productivity.Rising productivity
has been, of course, a notable fea¬

an

Broadway,

Partners will be

steel

will

the

the most recent

for

39

of Dec.

partners, and Arthur G.
Loban and Mary B. du
Pont, lim¬
ited partners.
Mr. Kerbs
is
a

If such is the
case, further ad¬
in demand must be accom¬

modated

at

City.

as

general

vance

these securities. The

factors

second

expenditures for
have declined in

lays

:

offices

member,

a

unlikely that

capacity.

with

Edward

"full employ¬

as

It seems not

operating close to

This advertisement is neither

powerful

on

high levels of late 1958.
In

de¬

1

New York

1960 will open with the
economy

crease

following

economy

of

upon

of

change, will be formed

ing has shown surprising strength

Factors

about

devel¬

ment."

mem¬

bers of the New York Stock Ex¬

now

half 1

1

Kerbs, Caplan & Mindnich,

re¬

million per¬

about

'

Kerbs,; Caplan &
Mindnich Forming

million away from the 4%
figure

"Glamorous Decade."

in

Uncertainty

im¬

expansion will
whether 1960 will in

1958

past

unemployed,

.

reverse

upward from

of

sons

we

* "...

v

strike, business will have an op¬
portunity to demonstrate whether

ing

movement

have only about 3.3

the

that

address by Dr. Gies^ before the
Chapter of the American Market¬
Association, Detroit, Mich.

ing
•

been

gradually dwindled until
1

major factor In price level

,

settlement

level departing from its encourag¬

sidewise

have

assumed

♦An

possible
mainly because we began the re¬
covery with a large pool of un¬
employed workers. This pool has

unquestionably will

Sixty and the
"Glamorous Decade"

"

employment; and, second, will the. boom: Business spending
next

a

big gains in output in

months

gains
as

therefore

Detroit

the-stage for a
period of wage and price
increases? The possibility of such
occurrence is very real.
The

and

further gains in
productivity will
be forthcoming this
year.

of

widely regarded

expansion

1950-51

fourth

cent

periods early

continued
it-should not-be

changes. During the postwar era/
ture of the post recession scene—
our
major periods of inflation— productivity in
manufacturing re¬

moved

export

•

in

be

balance of

almost

burst

recovery

productivity disappeared

-

average

business

in

favorably

part of 1958
But in other re¬

advance

years,

Will 1960 mark another
period
when; combined -demands
upon
the economy set

The preceding review
that

hostilities

early 1959.

cent
in

most recent round of increases. »*'-

Changes

1960

early postwar

in¬

very

latter

balance' of nearly $2 billion
by the second quarter of 1959.

the

return

a

has

contractionary
beginning of

The

year.

suggests

of

price

the

and

' * port

quarter

the
steel
figures, furthermore,

prices

current

trade

represent real gains in output, for
there
has
been
only
nominal

change

net

a

since .the

U.' S.
billion

latter ;/ despite

strike. These

up¬

What meaning for price
changes
can
be read from the
foregoing

from

---the

rise

postwar annual rise of $3 billion,
an estimate in the
$515-520 billion

1959,

for

background for an¬
buying and-price
increases in 1950-51, and
unprece¬
dented demands for
plant expan¬
sion in 1956-57
brought on the

the

lays will expand by the

mo¬

mand

an

in

Korean

other

a

influence

$431 billion to

-

in

gained

represented

$490

rapid

between

provided the

busi¬

->

opment^/

low

and

continued

assure

momentum

Finally, it is evident that for¬
eign transactions of the U. S. have

sion

the

residential

the

portedly advanced

periods

The post¬
of World War II

way

certain

in

construc¬

phase matures.

space.

year's

.

will

Prod uction
has soared

nomic

—

the

creases in the

outlays, aggregate purchases will
attain a minimum level of
$510
billion according to the most con¬
servative estimates.
Admitting the

-

the

inventory accumulation is limited
to the early months of
expansion,,
and sharply recedes as the
growth

into

explored

inventories

demands

despite

peak in the second range
appears more probable.
quarter. It has been noted, how-/
Nineteen Sixty: Outlook for
ever, that the effective force of

elevating the
hitherto

As for

spending.

reaching

present'

economy

growth

—

1956-58—

with

burgeoning demand.

opened

coming
year.
Led by advancing business
capital
spending and consumer

mentum in the first half |>f

'46-'47, '50-53/
'55-'57,

omy

ward

inventory

says

corresponded

poned

in other major
parts of the econ¬
-

real.

decrease in

1958

and

the

2%

uidation

Like

steel

economic

of

probability, however, that inven¬
tory accumulation will average
■" $3-4 billion for the
year and that
The switch from
inventory liq¬ state and local government out¬

the

proportions
postwar prede¬

its

of

this

ness

spending,

economist

an occurrence is very

attained

as

cessors.

now

Federal

of

government,
construction, exports,

of

state-local

adverse balance of payments.

an

possibility of such

economy

and

1946-47,, 1950-51,;. and
have

levels,

•

sectors

1960

units—are

earlier

highest since 1955.

slackening

in

million

year

Summarizing the outlook for
the Nation's business in
1960, the
forecaster
tells
us. that

'

-

that, following the
consumer

leveling off in

price-inflation

The current boom in
can

expects

business,

of the housing

former

the

high for the economy

Gies
up

than

emergence

prospects

surgency,

Prof.

stepped

more

gradual slowing
■

economic

new

above

and the

Associate Professor

University of Michigan, Ann Arbor, Mich.

v

year—109

40%

9

10

The Commercial and Financial Chronicle

(2102)

of

most

Stopping the Debasement :
Of Our Currency Now
Financial Analyst, Author of

By Dr. Franz Pick,* Economist,
4

"I'ick's W orld Currency

Report," New York City

dollar has been
throne" after exposing what he concludes

Foreign currency exchange expert claims the U. Sc
displaced "from its paper
•

to this charted trend, Dr. Pick

interest rates, acceptance

of some economic austerity, slowdown and

unit

can

official

at

units.

rency

it.

Nothing could match
strength.
It was

radiated

It

and

foreign

trad¬

pletely

and

in

the

Pick

of

stability

dollar.

S.

that

Franz

Dr.

con¬

fidence

U.

It

the

thought

was

And

nothing could diminish its
or
impair its reputation.
much
of the
gold of the

free

world,

value

well as the pri¬
vate assets of far-sighted capital¬
ists

Europe, began to move to
the United States.
In September,

when World War

1939,

in

II

broke

Europe, an even greater
for dollars started and

scramble
from

then

simply

the Greenback

on

King

all

in

was

belligerent

World

entered

War

II

in

December, 1941. We had to finance
it, as wars cost money. The print¬
ing presses played a major role
in this procedure. Currency cir¬
culation rose from about $7 billion
in 1939 to $26.5 billion in 1945.
That

was

an

increase

of

about

The public debt increased

278%.

from $40.4 billion in 1939 to $278.7

billion
590 %.

in

1945,

And that

there

leap

a

was

more

was

of

about

inflation.

As

chasing
fewer goods and services, prices
rose and the buying power of the
once
almightly dollar started to
shrink.

At

money

it amounted to nearly 23% for the

period 1939-1945.

practicing a policy of austerity
and of sharp deflation.
But that
would

have

been

wise."

The

war

"politically
was

over

Whoever

whatever

the

conservative

said about inflation

voted
ment

the'

eggheads

was

nonsense.

such

false

prophecies,
famous 1946 "Employ¬

Act," which put the main¬

rency. At the same time, the rest
of the world, partly

destroyed in
Europe, Africa and Asia, clamored
for American goods which it could

the

pay

for

famous

with

dollars.

"Dollar

Thus,

Gap"

came

into

existence and showed to
uninformed politician or

the

that

in¬

banker,

in spite of all talk

about

flation and. wage spirals., the dol¬




to

all

the

innocents—

as a

ernment

such labels

communist

as

sedi-

or

a

on

f

'

5

_

was

second class

a

to climb on to that plateau

'

''

m.one.y
m uc h

,to

in-

The

if

we

r.

and

most

cogen

believing in the futur

the international

companies i

that, logically, oil profits will b
made where the oil is. Of the Fre

are

known

located

oil

in

the

reserves, 69
Middle Eas

whereas

only 24% of the Fre
World's
production comes fro
that area. To put it another wa

the entire oil demand of the Fre

World,
including
the
Unite
States, could be supported for 2
.

to

buy oil stocks,
even

the gods—and o
investment trusts.

first

World's

our

not

of

of

the

for

reason
f

nor

telling-

clients

lap

of

course

credit
gained

be

in

ove

***** °t «">e..What happens t
their
stocks
as a consequence
i
thp
lan
of thp
ports:—and
in the

f15 ^

shut

But between 1956 and

1958, the
storm signals be¬
came
on the dollar hori¬
zon, signs which the Administra¬

monetary
apparent

tion refused to observe

The

rise

of

or

of

wages

porting industries to sell
the volume

reduced

of

on

U.

And towards the

ports.
of 1958

to heed.

American

the refusal of most

labor and

ourselves

ex¬

credit
S.

ex¬

summer

found out. that

we

outpriced

we

in

had

many

world

markets, where the cheap¬
er-producing industrial countries
of the
European continent were
beating us in a highly interesting
and still

continuing battle of price
competition.
At

the

to lose
In

of

time,

same

of

some

1949,

tion

our

has

started

we

monetary gold.
administra¬

our currency

showed

total

a

$24.6 billion.

lion.

migration of labor—came into
being.
About 175,000,000 people

live in these six countries.

Maxwell R. D. Vos

from

years

are

Middle

Today

than

more

gold

about

we

stock
do not

$19.4

bil¬

The difference of $5.2 billion
returned to the leading ex¬

porting

countries
We

the

tried,

of

just

Europe
as

and
did

we

loss of the dollar's

pur¬

the

petroleum

out

the

high
gets not

wants

No Longer

more.

mon'°Market'ancf

of

^urop°e™n

as

a

It

has

a
horrible negative lever¬
monetary destruction. But
here too, official propaganda tried

and

still

tries

to

reduce

the

im¬

U.

S.

Dollar's

1959, the center of foreign exchange transactions—which until
New York—moved back

was

to London.-

Frankfurt
rank

Ajt present, Paris and

competing for this

are

the Continent.

on

But Man¬
_

hattan is out—probably for good.
There are other underlying rea¬
for the present situation. The

sons

"document

business," and the letof credit, also moved to Lon-

ters

don.

The

back

in

the

East

of

reserves

alone.

On

the

th

oth

insurance
Britain

business

is

London's

and

during the

summer

1934

—

of 1959, when

>1a^ Proved
remarkably
I
think
therefore inef-

we

lectuaimust Aa.^.e

the oversupply as

Precondition of investment

^can

whether it

,

th

Ca!Lda

th

of

am

five-year

a

that

reasonable

a

it

need

speaking

perspective;

take

than

more

e^c

three years or

so to restore prices
and profit margms to the attractive levels of 1956-57, but because

co

tn

®

..

thp

at

what js .

vL

that

Middle Eastern

o

^inrt^Th^^nQ^Vf1 Jrtrtir^0r

ijrtiHn' i u-rroi o?
additional barrel of

reserves

^""compared" to"
^
V4?ii
and $1.45
« in
■-

the

the Middle East is believed
industry observers to be abo

states.

These

sjze and cost
may

"to

•

zuela,

be

Ven
-T

TT

Unit

considerations

are

of the kind th

masked

temporary

for

time

a

dislocations

in

!

wor

assert themselves overwhelming
iui
for
upuuu
optimis

iccwuu
reason

about the Free Foreign World
derived from my second table
figures. It shows that the Unit
States

-J,®

down,
over
period of time. I

now

?

an-

^
be lived
with, and

lived

not
"V"

simply through the

The scwuu
second

Wf

a

finual extension of existing fiplrt
the
inc^easf h! Middlp FacftP

•ftftr&s.'-va&s »*•«*•
J J ?

r

Fact

and

Western

Europe,

t

world's two great importing are

require

at

Wrolc
barrels

present
0

more

produce.

a

As

I

4.1

milli
ih

day than th
hope
to
sh

shortly when we come to disc
growth rates, this figure is goi

to increase very sharply, but ev
it
stands>
it
is
impressi

as

enough

jf

Latin

+empted

^-0

SUDDlv

America' i

this

exp

startling in any
add the growth factor and it
comes almost unbelievable,
average annual rate of growth
the five years 1953-1958 for We
ern Europe over this period '

its

this

is

again

comment

the

end

In

a

on

such

deficit. 1

evolution

Such

figures
liguies,

oul.ii

is

few

still

not

weeks

or

our press.

pitiless
piuiet.6

and
cum

facidi

tual, clearly demonstrate that the
dollar

having

cPrvPrt
served

a«
as

loartina

wading

fromeits°paper throne
miJbt^je occupfed either

displaced
whkh

better-managS

the

or
or

another
another

deterioration

already historic

disappear; even

Mirtrtlp

at a rate that would more usually

And

at

not

its worst since the

January"

vast

growing

thp

balance of payments

do

papers

tin.,
tion

of

The

wand

the

Mnrpnvpr

Vpar<?

nf

basic changes but finally discover
their repercussions in our gigantic

Last, but not least, dollar pres¬
tige received a terrible blow
devaluation

thatP they

over

12

serr,Ge

^Pa„d

Exchange

world's foremost chartering center
of maritime freight.
Our news-

sterling
sterling

—

magic

no
wave

can

.

inventories.

to

has

it

,

on]

we are, after all concerned first
and foremost with oil stocks, and
we must therefore take account
of the intangible factor of market
confidence. In the recession vbf
1958 Oil company earnings skidded

Baltic

^y

Disgrace

s?

h^?.p

then

rate,

any

once

age of

portance of the problem.

.

dollar.

over-publicized in

finally winds up
claim against our gold stock.

a

t

In the first four weeks of

,

extends
10 crucle leserves, retming capacity, and in this country

IMS .ar-MMfi
heavy blow to the
mighty

—

deficit

.

which

Center

through-

industry is involved in
problem o£ oversupply which
tp
t
rrnrtP rP^PrvpV'rpfin

industry

Foreign Exchange

a

industry

world.

The oil

at

—

a

whose economics department has
compiled excellent "statistics on

A steel

their

in

chasing power, to minimize these
months the seven Euronean coungold losses in the eyes of the
tries not included hi the
'Compublic.But, as you know, you
mon
Market"
known
as
the
simply
cannot
fool
all
of
the
"Outer Seven"
most probably
people all of the time.
will join the Euromart group in
Another important fact was that
a
combined free trade area enespecially since 1957, our balance compassing about
233,000,000 peoof payments started to show a
pie and with a total foreign trade
rising deficit, which, increasing of about
$83 billion, against the
by the slackening of our exports, U. S
foreign trade of onlv $32
now
has reached about $4V2 to
billion in 1958.
This fact is not
$514 billion for the year 1959..
Such

the_ British Petroleum Company,

industrialized regions
more than
about $0.80 per hour and is happy,
as opposed to his
U. S. colleague
who is unhappy with $3.10 per

worker

hour and

tionist.

with

economists

voice

result of relentless gov¬
propaganda, believed in
the stable dollar—was tagged with

who,

Asia.

tenance of full
employment above
the importance of a sound cur¬

not

ceased;,'5J.
®
undergoing

definitely
king and

currency

and

his

raised

expropriated

un¬

Nothing could lick the dollar, no
one
could
duplicate
American
goods, and nobody was as rich as
the U. S.
Therefore, the legisla¬
tors, inclined towards and influ¬
by

level, had

be

now

that this paper-boom really

warn

and

people
wanted
housing,
cars,
liquor, clothing, plus all the good
things of life. The belief ruled

enced

and is

1956

office—rather happy.

have
We could have stopped it there

in

that

to

the road to

and as the dollar decline was' arid thus eliminated any remain- or playing marbles, or whatever
exchange
restrictions ; for. security analysts do when their
major incentive for capital and ing
industry to invest in capital goods their foreign trade. A new trade industry gvoup runs away from
of automatically rising value in territory,
the famous European them. You may therefore conceive
Paper Dollars, the boom atmos¬ Common Market-including Bel-'how firmly my arm was twisted
France,
Germany,
Italy, in order to get me to make these
phere with its full and fuller pay gium,
envelope seemed to keep manage¬ Luxembourg and The Netherlands comments. Most of the figures in
ment and labor—as well as the —planning elimination of all limquestion are used by courtesy of
politicians whom they elect to ttations of tariffs,, capital transfer

the

start, it was not
much.
About 6% in 1941, 9% in
1952, 5% in 1943 and so on.
But

among

in

cents

first

countries.
We

ficial

consolidation

as

in

out

-

degree of protection.

some

to show that the international oi
companies are in a good positio

the

of this fact

a

unit.
Everyone had
nearly un¬
money

shakable

When an industry is universally
dollar' acknowledged to be in the dolwithout
hoarding
attraction drums—or perhaps I should say,
Abroad and selling WIow its (Smy friends in the

vfrtue

us

d

e

international oil companies are sizable in our domestic market

Vr and, thus, provide their shareholders with

right. If we happen to be wrong
hand, the Free World's reserv
over
the years, that this loss of structive monetary reform.
They well, I suppose there are com- oubririe^thp Mirtrtlp Fact Wnni
buying power was not bad for b e c a m e externally convertible pensations about teaching school, SUDDort Free World demand f

the

most
d

political perils confronting such firms, the oil analyst notes that

our

.•

able American

r

'the

had^oJmei^o^nTnd"

banknotes

Bv

any¬ formed about these facts or played
the famous ostrich-technique of
buying value of 19 years ago. ignoring them. That was another
This procedure shows a loss of mistake we made. ;» V*.";
f
At the end of 1958, nearly all
nearly 3% a year.
Such a con¬
stant erosion of purchasing power Western European currencies and
the once-again world-dominating
was met with no resistance by any
Administration.
We were told, pound sterling underwent a con-

currency

world's

States deals with reasons for optimism about the future
of international oil companies and for the opposite. Concerned about

would

its

fully transfer¬

became

Brief but candid assessment of the outlook for oil
companies outside
the United

position P-® A? <
in the world of monetary units,
lar
still
was
a
highly; desired* People overseas began to
prefer;, if-J ??? • y
currency.
their own local 'money units Or
relieve 1 n
In the meantime, the once 100
gold and stopped running after seeping
my
cents of purchasing power of the dollars.
'
:"h"Ui
1940 dollar continued to dwindle.
The American public, including
aH0U
It fell to about 62 cents in 1947, our bankers, newspapers and poliaA1'
1S
shrank to 58 cents in 1950, to just ticians,
either
remained
uninn e 1 r«'e r
50

arid

boa

1%;

where between 46 and 47 cents of

con¬

vertible

By Maxwell R. D. Vos,* J. R. W'illiston & Beane, New York City

^eiHe

The com¬

ers.

dozen

a

•

by the respect
of
politicians,
bankers

I Outlook for Oil Companies
Outside the United States

from

about

*

unded

surro

In

small discount, varying

a

unemployment. The monetary analyst warns:

Only 20 years ago, the American
dollar dominated all existing cur¬

discount

a

value.

hotels, travel agents and banks
buy American money.
J
A period of nearly a quarter of

-

(1) of possible gold
panic if we were to lose another $1 billion or a billion and a half;
(2) we are theoretically short of about $7 billion of gold, and (3)
no matter how politically unpalatable a
radical deflationary policy
may be it is preferable to endangering our capitalistic system. The
writer also excoriates the ignorance of our political leaders in mone¬
tary affairs and samples of their pronouncements on the subject.

Euro¬

European
countries
which
had
put their currency systems into
orderly shapes,
the Greenback,
once selling in black or gray mar¬
kets
at
considerable
premiums
above the official rate, found no
buyers at the same official level.
between

advises, is maintenance of high

Thursday, November 19, 1959

.

.

currencies listed the Ameri

pean

Only at

Dollar decay." The

the indicative factors in "the evolution of the

are

cure

rehabilitated

the

.

posed

rf6
of

thn
the

by

a

p

ound

unfortunately opmiraculous

sheerly

Continued

on

trie sharp business recovery which
occurred in the first half of 1959,

oil

profits

page

22

showed

regrettably

little buoyancy; aside from

a very

Jeserv^
|ns:dp

bf exhaSst

vears

•yc

.

.

.

eQuation

,

o

hs Dresentlv kno

would

oy

L,"

its

is
suilicien
case, but o"

year increase in the first half

J959 seems to have been nea
18%)- Applying the

same

8%

crement to the Free Eastern He

isphere (as compared to the av
special suuauons ine mausiry
e
v
.
1Q
dld not reward its shareholders a§e 01 11/c achieved since 19
and 100% earnings we find that it will be using

few special situations the industrv

improvements that were frequent additional 2.4 million barrel
^ the cyclical groups. It follows day m 1963. Prices and pr

that the

h(fld

rtniilr0'rinnnt
eVThi«
decay.
This

reanirements

to

certainly developed an impressive 13%; project European consu
cycle of their own, thereby shock- tion five^years ahead at onl
mg many good people to whom ™£de^, 8% and y°« fl.nd that
"oil" and "growth" had been un- 1963 that continent will need
questionably synonymous terms, additional 1.4 million barrels
To add insult to injury: during day- (Incidentally the year-

higher

unit
unit

dollai
is

be associated with steels or railroad equipments. This is not to
say that they were caught up in
the same business cycle as the
capital goods companies, but they

addition

3-ears>

oils

plateau

it

for

at

have to .attain
of
least

befol'e theT
,

earnings
a

are

a
and

.couple

of

margins may be poor today
the international oil compa
own

the

crude from

likelT to growth must be

,

fiattorincr

nnVo-

be accorded the flatteung price.

which

satisfied, the

fmenes through which the
wdl

be

run

and

cr

out i

earnings ratios that they enjoyed through which the growing
in the years 1955-57. I seek only kets will be served. They

m

Volume

190

Number

5900

.

.

The Commercial and Financial Chronicle

.

(2103)
have

be very,

to

quick

unlucky,,

ing money.
I

or very

"

:

would

like

to

-

-

comment

-

3%

capacity "over
the

in

lieve
For

this

United

figure

the

States.

be

to

whole

demand ".of
be¬

I

phere

in

capacity

spite

of

refining

quickest*

20%

the

plant

now

under construction

look for in

v

From

the

stock market
the

over

in

would

planned'

or

well

past

ability

the

oil

Hemisphere
at

far

they require
ponent

of

the

refined

for

lower

meet

to

of

the

gain

products

a

costly

of

had

'

An

oil

word

international

oil

'

company

no

into

the -French

market

un-

suited

low

because

its

of

oil

very

greatest
mestic

their

in

factors

our

shareholders with

are

we

chance

further

of

Middle

East

in

trouble

the

Algeria? Or the
eertainty of rising costs, diminish¬
ing returns and cut-throat com¬
or

^From

York

*

stocks.

Forms Own Co.
'.

_

Stanley

r

#

k

1959,

the

investment

at

76

securities

Ketcham

R.

firm

Co.,

&

of

Inc.

Beaver

St., New York City.
The company will engage in a
general brokerage business and
security underwritings.
Mr.

Ketcham,

Wall Street

started

who

career

and

In

is

ritin?Qvan

v,

rf

of
the
lost

any:

case,

ir<m

June^ 1957,.

ending Oct. 28,
time of this

at the

Th

l0^e-SnfirVfhp!

The ratio for the w
four

June, 1950.

high°ofU3^52

hr June; 1957
nine domestic integrated from a high of 1.33 to 0.89.
International oils reached a high
to

a

1.84;

the

of 1.02 and Oct. 28 it

1946

as

a

his

with

page

the New York Stock Exchange in

member of the Planned In¬

vestment
istered

Department and

representative,

midtown manager.
Prior to
Mr.

reg¬

a

well

as

as

Ketcham

►

with

was

years,
was

department

and from

portfolio

reported

increase of 22.% in the

an

three

for

1938

to

1952

he

manager.

2% decline

a

nine

are
internationals,
gain of 15% in the first

a

months

in

the

and

third

from

ports
crude

oil

quarter

quarter.

the

been received

as

HILLS,

has

No

producers

1959

in

i AL i

^

1U

_

.

A.

*11 •

'

been

Calif. —Burt
elected

Presi¬

Inc., 232 North Canon Street.
B,

has resigned

Gerald

Cantor

He
who

to become president

of National Theatres &

Television,

Inc.




•

'

.1

.1 »J

•

1

several

enue

years.

;

■
Furthermore, the domestic oil
industry no longer is adding to
refinery capacity, and the capacity
6f pipelines and tankers is suffi-

of

,

by say-

that it might be beneficial

.f ,11 f

.

-

.

for the industry

Therefore, while-the

as

d

.j.

the

New

York

'

a strong tic

■

This

oil

industry.

New York City,

neither

Mr

an

—

offer

to

sell

Havnie

before

Security Analysts,
Oct. 29, 1959.

Ull qLaitIOUQ Rufhlraua

vZ Uo LUIIICl o JJI UlAt/I o
np
XJot7^
1
10
llciVO
lVlOOllHg
m-m *■

««

-

t

■»

.

/

mppHriff

,

of

Customers'

an

educational

-

.

.

s 10 c k s Nov. 24 at 4 p.m. at
Schwartz' Restaurant, 56 Broad
gtreet

New York at

'

~

,

sneakers

f

■

will be Dr. Iia U. Cobleigh, David

—

solicitation of an offer
by the Prospectus:

to

buy these securities.

vV

$61,500,000

Transwestern
'•■■'J'7

Pipeline Company

$40,000,000

::y

:'

:

5% Subordinated Debentures, due November 1, 1969
After October 1, 1961 payable at
option of Company in 5xfi % Cumulative Preferred Stock ($100 par value)

have

•

2,000,000 Shares

third

the

Common Stock

($1

par

value)

are

'

it is safe to say that
most of the fluctuations in profits

The Debentures and the Common Stock

are being offered
only in Units, each consisting
of Debentures and 5 shares of Common Stock—a total of
400,000 Units. The Debentures and the Common Stock will not be
separately trans¬
ferable prior to November 1, 1960 or such earlier date as the
Company may elect.

of $100 principal amount

the

last two years have
primarily as a result of
the changes in product prices and
crude oil production.
occurred

Price

$153.75

per

Unit

Sees Oversupply Ending
I

should, however, like to

out

go

limb and say that I believe
the domestic oil industry is

a

that

going

to straighten

out

its

Copies of the Prospectus may be obtained in any State only from such of the several Underwriters, including the undersigned, as may lawfully offer the securities in such State.

over-

supply situation in products, and
the next year, with

over

now

other

and

words,

if

depending
weather

next

spring.

the

weather

on
be¬

In
is

Lehman Brothers

Merrill

Lynch, Pierce, Fenner & Smith
Incorporated

Blyth & Co., Inc.

The First Boston Corporation

exceptionally cold in November,
prices will tend to improve early.

Glore, Forgan & Co.

However, the supply of finished

Kidder, Peabody & Co.

Eastman Dillon, Union Securities & Co.

Goldman, Sachs & Co.

1

Harriman Ripley & Co.
Incorporated

Lazard Freres & Co.

Carl M.

Loeb, Rhoades & Co.

products will be geared closer to
demand than
less

of

ever

before

regard¬

weather, whether

Other factors which could effect

profits
panies
their

of

the

over

domestic

the

near

oil

Stone & Webster Securities Corporation-

Dean Witter & Co.

Bacon, Whipple & Co.

Reynolds & Co.

com¬

term

operating efficiency,

Smith, Barney & Co.

not.

or

are

quan-

November 18, 1959.

'

-

meeting and forum on low-priced

nor a

The offer is made only

'

nf

of

Nonintegrated Company.

—

announcement is

bv

Society

tions'for investment in the domes-

scheduling of

suPPnes; and have had

nrt;v;tipc

then be nece^sary to make selec" Bf> ^?eld„& Stern; and Robv
ert H. Stovall, E. F. Hutton 8e

the consumption of domestic

kave Uoset

whole

a

dulling activities of

"T^"address

in

previously mentioned factors will

as

drniin«

product prices .will benefit profits The Association
f°r all domestic integrated com- Brokers will hold

Tmn._llf

"down

to the economics

industry

.

.

•

oil

individual companies,

•

recovery

the

stl dy"18

whole.

a

attention

to

consideia(py

y

re¬

with
likely
to reduce the 23% reported in¬
crease in profits for the first six

during

:

,

I would like to conclude

.

Panies, and help to hold the price
cient to take care of growth in of crude oil at or near present
demand for the next few years, levels, it will take something more
A11 these fact0rs make for greater than the ordinary oil business to
utilization of present facilities and make, any particular oil stock
should benefit earnings.
'
really attractive. A study of these

compared

period in 1958

same

tween

Cantor, Fitzgerald & Co.,

succeeds

--v

yet, but the lower

allowables

of

increase

an

the rate of recovery
the degree of .cold

Cantor, Fitzgerald
BEVERLY

,y

.

that prices of finished product will

Kleiner Pres. of

dent of

t

million per year in additional rev-

which

seven,

reported

improve

Kleiner

J. J .'

in the third quarter. Four of these

Moody's

security analyst in Moody's

research

a

reductions in costs within the next

1958. Three domestic refiners

first nine months and

on

a

boom,

the individual

.joining Smith, Barney,

Investors Service for 17 years. He
was

at

1.25.

was

■

a

using.

and increasing scale of their cost raw materials, makes it invitoperations. And this, for an in- ing for oil companies to enter this
dustry which already has rela- field as a means of offsetting their
tively low unit labor ^costs. New lower rate of growth in demand
automatic equipment for both op- f°r oil. r
' '
v
erating plants and office work are
An increase of V2 cent per galbeginning to be. standard equip- Ion in the weighted average price
ment and should permit further of finished products means
$700

1957; declined 12% from
1958; and in the first nine
of 1959, based on the re¬
ports of seven of these companies,
recovered. 16% with .the third
quarter alone showing a 2% gain

the

—

to

1924, had been associated with
Smith, Barney since 1952. During months.
his seven years with the firm he
I think
was

look

1957 to

4%

•.

19 companies rose 300% from

same

:

,

Smith, Barney & Co., has opened
Stanley

ni

oil

to 1.16 in the week

over

R.
Ketcham,
formerly
of the midtown office of

manager

1

holdings

high of 1.72 in

a

a

months

Stanley Ketcham
f

uyvJt

to the 425 industrials has declined

address

an

New

.

been-reducing

these

from

J

product is important. The rate .qfr*(

opera-

The combined net income of the

by Mr. Vos before
Society of Security An¬
alysts, New York City, Oct. 29.
the

U—

proportionate

petition at home?
,

disappointed oil
k

have

ing Standard & Poors indexes of
stock prices the ratio of the 19 oils

de¬

some

protection. But which risk
going to assume?
The

gree of

Haynie

the overall industrial average. Us-

provides

which

market,

do¬

own

Charles W.

equities-have
substantial ground compared with

refinery

yield of heavy fuel oil.
Personally these risks scare me,
and I have to comfort myself by
remembering that the
interna¬
tional
companies
are
also
the

!

the

of

1 "I

l, ees

their

prices

.

All ub

rather than devoting valuable time

shareholders

for

—

which, by-the-by, it is totally

segments of the comphAppraisals of oil and gas

nies.

Petrochemicals represent an area
on
a
6% annual increase in.de- which offers great promise for
mand and higher crude oil prices some of the oil companies. I stress
to absorb some of the inefficien-- some because the type of chemical
cie$ which crept into their
tions during the postwar

result many

a

dividual

more

management.
As

gradual

of

company

S.

U.

>

evaluating oil
improvement in stocks. In the future more attenlikely. The re- 'tioh will have to be paid to the
of the domestic oil return on investment for the in-,

a

cals plus the improvement in their

Govern¬

the

has

J. Iv

trying to say
oil analysts we must de-

growth in demand for petrochemi-

imposed by its import
quotas,, and the French Govern¬
ment is threatening to accomplish
by forcing high-cost Algerian oil

that

markets

have made
V

as

a new wav of

fas reserves,- Also the profit po- reserves, and refining, marketing
tential. from the rapidly growing and transportation facilities,
^emahd tor natural gas liquids should be made on the basis of
e*1C0Lll'aged many oil compa- their earning power rather than
n^esA
open UP some oi> their on some of the outmoded procesmn*m §as reserves. \-;
dures and criteria we have been

and,
:
-

industry

A vi

velop

prices, and the oil companies ability to supply the necessary low

p

ment

V-VUlJVUHiVO)

is that

that at

ports of many
companies indicate that they are
now more
willing to commit, their

'

companies, for the first
nearly 10 years, realize
that they can't continue to count

con¬

of

oil

WAX

company

oil

warrantable

art

years

-

producing

What I have been

company reports and see the reduction in the number of
employ-

ventory

free

oil

exploration
to make

be necessary

Take

ing confiscatory
taxes,
outright
expropriation, or the kind of un¬
in

the

way

on

the

Extraordinarily

domestic

we

the lack of in¬

trol

in

least

mar-

in¬

faces many kinds of peril, includ¬

interference

profits.

strictly

any

impossible.-; However,
assume

the other

on

wellhead prices is

,

time -in

of
anticipating

danger.'

about

petrochemicals.

course,

in the last two

Per¬

the

f

J
gas

are

it is reasonable to

•

•

expected

was

gasoline-making

of'

for¬

dustry but
a

-

1

.

-.' Conditions

haps too much

equipment.

Finally,-

it

re¬

its

power.

capital cost,' since
much smaller com¬

years,

oil analysts, as

earning

mer

to

points

tity of imports, natural

in¬

dustry -to

Eastern

in

investors, have lost faith

as

of

possible

action

two

appear that

Hemisphere. Moreover, by a com¬
parison : of
refinery
yields,
it
demands

ticular stock really attractive.

v

the

be

of evaluating oil stocks. Mr, Haynie pin

ways

com¬

come

determining selection and adds that it depends
something more than ordinary oil business to make any par-

in

growing

'

new

what to

Eastern

should

in

successful

Predictions of prices
to be obtained by individual com-

next

pames;

and advises fellow analysts the time has

develop

increase

in the

gains

attractive.

sees finished oil product prices improving in the
outlines factors that could favorably effect domestic oil

upon

oils

,'

regulations.

analyst

panies profits;

even

/.

Oil

a

overhaul

.

r

producers,

kets for their crude oil or" face
a
future which offers only moderate

Improving Natural Gas Prices

„

Oil

hand, must obtain controlled

efforts will

year;

whole, 11.3%. A quick
comparison of growth rates will
$how where demand is likely to
as

crude

By Charles W. Haynie,* Carl M. Locb, Rlioades & Co., N. Y. City

Hemis¬

phere, within which refined prod-ucts flow quite freely, the excess
is 12.3%, which I believe to be
nearer the mark.
In Europe it is
7%, and in the Eastern Hemis¬

and

Natural gas producers are faced
with
the
complex problems
of

low.

very

Western

crude'oil

the area east of the Rockies.

Domestic Gil Industry

:

both

on

product prices. These imports now
appear to be stabilized atTeast for

very

briefly on refineries. The indus-:
try's data show an excess of re¬

fining

influence

Profit Factors in the

their feet, to avoid mak¬

on

11

'

'

'

*

•

-

I

12

(2104)

The Commercial and Financial Chronicle

A

ting weaker through luxury and
living.

Warning to America

Can't
In

A reminder that Russia believes "coexistence of economic differences

is impossible and that one system

ultimately be destroyed" is made

Free World
we

can

spiritual

and economic awakening

in warning

now

and

We

expect peace, but for another generation.

sia

to

write
on

the

United

States.

As

believe could

I

report

while

would

think

New

last

my

will

readers

start

interested

e

be

War

chiefly in my/

cities.

as well as
various
other

Whoever

win

such

might
World

a

would

Moscow

III,

cities

Russian

and

even

or

happen, Mos¬

destroyed,

York

American

American

never

other

and

cow

two months' trip, I

this,

my

my
b

route from Rus¬

ocean—en

be

de¬

probability of "'

stroyed whether or not we could
destroy the big steel plants and
military centers in East Russia and

World War III-

Siberia.

in

chev does not

idea

•

the

to

as

time.

our

Everywhere

in Russia

P

destroyed.
beautiful

you

"Dove

e a c

of

e."

I

The

n

it

appears on

the '

frosting of
cake,

stores

printed
it

and

in

it

wrapping

appears

paper,

postage

on

prise could

should

prevent
from coming now.
a

World

there

War

.

The

Russian

once

owned

so

much of

our

land.

They relate how we "stole" Texas,
New Mexico, Arizona, and Cali¬
fornia
their

from

Mexico,

rightful

American

which

owner.

news

in

The

the

was

main

Russian

newspapers is about our treatment
of the Negroes at Little Rock. (I
am

told that this has let up some
Mr. Khrushchev has re¬

since
turned

to

about the

Russia. They now talk
"Spirit of Camp David."

When talking

Russians, I insisted

peacefully coexist in

case

World

War

III

The Russian leaders

should

be started either by Russia or by
the United States, which latter I

this

answer

by saying that "intelligent people
are
now
realizing that religious
differences are unimportant" and
are

gradually

On the other

it

tomorrow, and

:

In

conclusion—r\ve

tinue

cannot

con¬

Russia continues to concentrate on
fundamentals and grow stronger—

perhaps 20
forever.

years, or more,

Hence,

we

three

but

may

ex¬

pect peace for another generation.

carefully
could

watch

be

a

Chin a,

which

deciding-factor

as

to

when the fatal day will come.

being

eliminated.

Illinois Light

"Central

&

Southern

with

447,000; gas
heating service in two cities.

The

ences

is

system

is

impossible and that

ultimately

must

getting

Peoria is
center
16

is under

offer to buy

any

the

are

constantly get¬

circumstances

by

River
trial

along

areas

well

are

the

Illinois

located for

indus¬

expansion,

Securities

ness

has

formed

of

been

165

Corporation

with

offices

at

Broadway, New York City
in a securities business.

to engage

Officers

are

Paul

W.

President, and Ann
Virginia
Christine,
dents. Mr.
an

Havener

officer of

with

which

and

Vice-Presi¬

formerly
Jerry Thomas & Co.,
Miss

also

associated.

was

Pre-sident

Securities

Havener,

Koeohl

was

Christine

In

of

the

was

past

he
Hovener-Hall

Corp.

the company's industrial busi¬
and is now completing a new

industrial engine plant. Other

enterprises include
tribution

I
,
i;CSpecial to The Financial Chronicle)
—

Milton S.

Gordon B.
Hutton &

Nov.

Crary

Crary, partner in E. F.
Company, passed away

8.

Kroger dis¬
two
new
six Jewel Tea
a

centers,
supermarkets, two large motels,
etc. An expansion program which
includes

terminal building
and control center is
currently in
new

a

at

progress

the

Greater

Peoria

Airport.

Electricity accounted for 60% of
the

company's

gas

38%

revenues

and steam 2%.

38%

were

18%

commercial,

and

10%

to

an

i8t *959

laneous.

Gas

is

1958,

and

sold

miscel¬

chiefly for

residential and space heating pur¬
poses, and since no gas is available
for interruptible industrial

industrial

revenues

Residential

of

use

sales,
only 27%

are

electricity

3,707 kwh.

now

per

an¬

num

compared with 3,405 in 1958;
the sharp increase is
partially ex¬

cold winter and hot

a

The

summer.

filed

company

heating of 1.90
low

recently

promotional rate for

a

the

per

space-

kwh (.4% be¬

regular
in

rate)

which

added at the Wallace

was

in

April, 1958.) The

pany's lines
with

of

Commonwealth

Central

Service

and

Illinois

Illinois

inter-connections

have

company

pleted).

com¬

Public

Power

with

now

(two

the

latter

been

com¬

be

Station is expected to
service by next June, at

in

The

over

half the capacity

serves over 100,customers, gas being ob¬

company

gas

tained

from

Pipe Line.

Panhandle

It also

owns

Eastern
propane

peak-shaving plants capable of
supplying 30 million c.f. compared

Copies of the Prospectus

may
in any State in which
the

be obtained from the undersigned
may legally offer these

undersigned

Securities in compliance with the
Securities Idws of such State.

facilities

to

underground

can/be

preliminary indications

built;

seem

orable. Panhandle is also

fav¬

working

storage project in connection
Waverly Field south of
Springfield,
and" if
completed

on

a

with the

Central Illinois

<j>neT-quarter

Light

may obtain
the», available ca-;

of

parity...
Capitalization is now about 53%
long-term debt (including 8% '.in
convertible debentures), 15% pre¬
ferred stock
and
32%/common
stock equity.
Gradual conversion
of

the

debentures

is. expected

to

offset

anticipated senior financing
year,
and
eventually the
equity ratio should be restored to

next

normal

a

35%.

The

is

company

expending about $24 million this
year for
construction, "but next
it should drop to $17 million
(unless another $7 million is re¬
quired for expansion of the gas

year

business). In 1961-62 construction
will

probably drop to around $10
$11 million annually. No new
generating units will be installed
or

until

around

1964-65

(including

.since

re¬

available

power

through interconnections) will be
quite ample.
During

the

the

stock

the

public)

1949

years

(when

went into the hands

and

1953 .share

of

earn¬

ings declined from $1.51 "to $1.37,
reflecting a decline in the per¬
centage earned

on

from

6.6%.

7.5%

invested capital
With a re¬

in the return to 7.7%

covery
1955

to

in

share

earnings
advanced
sharply to $1.85; thereafter, how¬
ever,
return on investment
dropped to 6% and share earnings

increased only to $1.99 in

1958.

For 1959 earnings are-estimated
at

$2.30,

the improvement being
part to better operations
Caterpillar Plant, which

in

due

the

at

had

been affected

by

strike in

a

1958.

Earnings this year were also
favored by an increase in interest
charged to
last

39

cents

1960

construction

to

year

this

20

from

estimated

A decline

year.

an

and

an

in

estimated 26 cents

seven

cents

in

1961

tend to

retard any gain in
earnings. However, receipt
of additional gas supplies, if ob¬
tained, should prove a favorable
factor earningswise.
may

share

The

stock

has

been

selling

re¬

cently around 32 (range this year
about 381//2-3012). With a dividend
rate
the

of

$1.52, the yield is 4.75%;
payout of 66% is

dividend

somewhat

on

the low side.

The first 125,000 kw unit

which time

000

$5.00 Per Share

Pekin

of

whether

at Edwards

will be less than three years old.

Price

exploring the

southwest

storage

also interconnect¬

are

those

is

company

determine

in

Edison,

(Par Value #2.50 Per Share)

The
terrain

this item to

plant with total ca¬
pacity of about 337,000 kw, com¬
pared with a peak load of 276,000
kw in August, 1958.
(A 100,000

Satura¬

heating customers is

about 78%.

now

cents

The company operates two gen¬
plants and one internal

October, though

the line yet.

tion of space

combustion

ed

Common Stock

where

areas

in

on

on

erating

Station

Properties, Inc.

outlying

gas service.

no

kw unit

150,000 Shares

not all are

Electric

residential,
industrial,

34%

wholesale

in

should be competitive with oil and

November

Company

serves

plained by

Gordon B.

new

warehouse,

shopping

revenues

Milton Boyce Now
Milwaukee Mgr.

New Issue

Northern

served

Opens in New York

be construed as an
offer to sell or as a solicitation of
of these securities. The offering is made only by the
Prospectus.

no

is

area

railroads, three air lines and
100 trucking companies. The

there is
announcement

major transportation

a

and

Havener

de¬

self-sacrifice; while the

Free Nations

.vyM0*1

interconnected.

and
there
are
abundant supplies of coal. Cater¬
pillar Tractor supplies a large part

charge of the Nashville office.

stronger

the

over

Havener Securities

They believe that Russia

continually

through

be

one

supplies

divided into three divisions
are

approximates

that

differ¬

also

company

major power requirements of the
Lincoln division-of Central Illinois
Electric & Gas.
The territory is

Merrill Lynch, Pierce, Fenner &
Smith
Incorporated, 710 North
Water Street. He was
formerly in

believe

economic

The

population of over
to 26 municipalities,

of the total.

They

1949.

a

Boyce has been appointed Man¬
ager of the Milwaukee office, of

of

utilities)

and

propane

This

system in

MILWAUKEE, Wis.

coexistence

Illinois"

electricity to 105
municipalities (including Peoria,
Springfield and Pekin) and rural

conflict between Communism and

fundamental.

OWEN ELY

taken

were

company serves

service

hand, they claim, the

Enterprise is economic and

(one of the

emerged from the Commonwealth

areas,

leading our present artificial
and getting < softer,
while

lives

Central

Free

stroyed.

Destroying Moscow
In

believe in God

as

God today. It

The Russian Answer

stories

of
how
we
fought and
destroyed the native Indians who

say

the world, as do the Catholics and

carry

newspapers

to

Ill

stamps; while the children in the Protestants who once were con¬
parks are encouraged to feed the stantly
fighting each otfyer. The
doves that fly about. Every speech
Protestants, when they got into
emphasizes
that
Russia
is
for
power, cut off the heads of the
peace while the United States is
leading Catholics; while the Cath¬
anxious for war. Even our guide
olics burned at the stake the lead¬
asked us "why" the United States
ing Protestants when the Catholics
is so anxious to fight Russia—and
got into power. I know well about
why Communism cannot be al¬ this as my own
ancestor, the
lowed to help the Russian people Reverend John
Rogers, was the
without hurting the United States.
first of these to be executed by
We are unfairly represented as a
the Catholics.
very warlike nation.
-;

enough

sac¬

then what?

for

that Communism and Free Enter¬

the

on

also

be

with prominent

is

is

does not believe in

not

after Mr. "K" dies.
Roger W. Bab sob

It

children to

that Communism cannot win

can

Moscow

mean

BY

Central Illinois Light

Furthermore, countries should

foregoing

never

politics

not

want

However, this does not
may

religion real,
unselfish, and
we

rifice.

wonderful and

city, the "pride and joy

World War III

restaurants

your

a

SECURITIES

Na¬

our

our

Khrush¬

now

It is

Free

great spiritual

a

must educate

Mr.

sure

am

of his heart."

replicas of

see

the

I

other

have

make

must

our

On the

hoping that the
Great Britain,

the

market and following the latest
styles of dress and entertainment.

ting weaker through luxury and easy living. The financial writer hopes
a

Market

am

States,

France,

will

Stock

and economic awakening. We can¬
not
go
on
watching the stock

stronger through self-sacrifice while the Free World is constantly get¬
for

short, I

United

tions

by Mr. Babson who opines that the U.S.S.R. is continually getting

Watch

Thursday, November 19, 1959

.

.

PUBLIC UTILITY

easy

By Roger W. Babson

.

with
145

last

winter's

peak

load

of

million

World
been

c.f.
Since
early in
II, the company has
operating under restrictive

War

Walston to Name
Two New V.Ps.
•

Walston

&

Co.,

Inc., 74 Wall
Street, New York City, will ap¬
point Douglas E. De Tata and Carl
R.

Walston

fective Dec.

Vice-Presidents

ef¬

Mr. De Tata

will

1.

make

his

headquarters

firm's

San

Francisco

in

the

office,

265

Montgomery Street.

orders of either the Federal Gov¬
ernment

Candee & Co.
44 Wall Street

New York 5, N. Y.




Peters, Writer & Christensen, Inc.
724— 17th Street

Denver 4, Colo,

or

the Illinois Commerce

Commission.
essary

This

has

of

the

because

been

which 3,181

had been added dur¬
With an additional

ing the

year.

supply

recently

Panhandle,

7,000

available
new

Now With Walston

nec¬

continuing
shortage of available gas. At the
end of 1958, 75,457 customers were
taking gas for space heating of

from

customers

(Special to The Financial Chronicle)

LOS
L.

ANGELES, Calif.—Richard

Ulmer is

now

with Walston &

Co., Inc., 550 South Spring Street.
He

was

Webber,

previously
Jackson

H. Hentz & Co.

&

with

Paine,

Curtis

and

Volume i£o

Number

CPJs n

The Commercial and Financial
Chronicle

.

A/YTYAm

JL llfci

;

5900

1

ri

';::.?£X ^as;?W^at ^ndf1^11# of; OOO .barrel

^mUnmCOT^
,

rrn-

f-v

•

i

1-/Ulllt/U ulv

-

.

'

/"NM

I ho! I JATTtOQllO:!.

■A. IIvy

best.year of the past J in

~V

-

.

T^v

V-/11

bulge
11 OGV*-

1 UH 11 vvl

JL

.

r

,

.

By. Donald K. Rusgell,* The Lehman Corp., New York
City
A

vigorous dissent to the

producer currently
basis

that

Russell

much

offers

pessimistic

held in

the

be

can

stock

done

solutional

a

views

to

for

market

is

alleviate

decade, 1957—the

•

T

I '■ Kvrtrl

11

"

.•

;

the

domestic

excess

c.mc

'V-

tory effort, reduce

our

capital'unprofitable; extinguish
producing capacity and liquidate

Still another is the need

but

for

the

views

the

on

outlook

producing branch of

ihe

American oil

industry are widely
They are part of the

prevalent.

general pessiwhich

mism

expects,
cess

hHHH

ex-

capacity

to

Mrticularw
particuiaily

t

imports -Should

'ivt!

various

production,

will

transports-

as

tion,

refining,

and

market-

i

n

JL.

Since

g.

1952

the

K||^Hp|r^^B

tion-emphasis

H||

on

Donald K. Russell

and

•

Exchange

most

the

of

increased

.

out

have

exploration

or

non-production activity. Investors
rhn
give, the industry a poor rating;
oils

t

vi /i 11 c? ri1,

oil

market.

and

t~\ r\

r»

t

have backed

stock

off

At

in

the

stocks

gas

in

rf •

strong

a

1957

peak,

represented

20% ol the value of the
Big

over

Board

shocks; but at the end of

relative position by oils
approximated S20 billion.-'Domestic

oils,
most of which depend
essentially
upon production, were the poorer
performers. .Worst of all, there is

widespread impression that

a

mestic

production

is

do-

inefficient

•

and

probably subsidized and that
ability to meet future require-

its

mcnts

is

dubious..

The

industry;
by. its failure to make itself understood, has invited such views,
inference this

By

will dis-

paper

the economic outlook

cuss

[Various

show demand and produc-

uneconomic industry.

•;

revenues

at 10-year intervals, covering the
20

and

years

the

10

next

fnnt ii

income

of

the

producing

represents
units
time
In the 10 years ended 1958,

for

an

;

~

-

total

wellhead

value

of

output
had a
compound
growth rate of only 3.5% per year,
contrasting with 14.3% per year
T n n

rl

v\ fetri Alio

a! 1
in the previous decade., Wellhead
income in 1948 was almost four
times that of 1938. In that interval volume rose well, contributing

about

in

\A/

ann a a

one-third

the

ot

and

revenues,

n

A a

a

increase

to

reasoned

both volume

and

prices

The

com-

parison of 1958 with 1948 requires
qualification
but
nevertheless

highlights the "broad trends;

was an up-year in busi- r
rather than a
down-year.
Production was full with 366 days*
in Texas, just three times as many

ness,

as

the record

low of

122

days

will'the

?f i]\e Producing industry has not

own capital needs perignore investment opin-

tared well in the past 10 years and
esPeciatty ln the last four years,

it

ion.

to

lightly.

The- market

entirely logical
stated

with it
are

pate

little:

is

a

still

action

in

we

the

flaws.

oils is

generally
have

we

unless

such

of

the

and

important ilaws
There

Nor

on

premises

agree

to

find

can

premises,
To

antici-

(1) Growth prospect

satisfactory and

well with that

of many

compares

industries;

(2) Profit margins are not necessarily frozen between low import
prices on the one hand and governmentai

price

the

(3)

if

other;
it

will,

impact of
cost

If

Has

review

can,

the
problems by
by realistic,

chaotic,-management,
are

must

Been
of

due

We

wish

r

reduction

of
producing
liquidation of re-

and

SGSLes'^w
The

u-

.

disturbing

-

trends

revenue

of the past 10 years derive
from smaller

in part
percentage gains in
important elemeats were rising
imports as affecting both units and prices and

demand, but

more

cwiva

refining

excesses

prices.

affecting

as

v

Important elements have included
slower

growth

of

automobile

ponulation mecompletion
the comoletion of
railpopulation,
oil
an

aieselization

the

and

flatter

sales crnwth of heafin® nil*
sales
growth ot heatinto oils.

last element

mendous

of

market

j

•

—

tion's

•

per

we

shall

Petroleum

inventories

^fpoSg prLure

Domestic} prices

<

■

consumption

A

classic

beginning of 1948.

The

huge

a

last

example of

Jan.

current

/»

equals

on

from

refinery

approximately 5.3 -million
beginning
UfKlllUlUg U1
of 1948.
O. The
ine
101U~

at the
Uie
clL

barrels

have

only 26% of the rise in producibil-

nnnoMprinff

creased

trend

chnrniv

costs,

due

is

The

^

c°ns]dering shaiply

'

capital

in-

in

disappointing

gross

here to

on

Bank for

will

trends

a

large

in

charges
against
income.
Chase Bank has good estilldt> °r.Vu
of capital expenditure,. in

ports

ot

crude

to

refining
should also

and

products
excesses.
Here

which it includes lease costs

show

all
drilling
and
development
we
COsts, including dry holes.
Exmarketing, Panding our wellhead revenue to
and marketing, include not only crude but gas

mention

because reffning
seem to have a joint operation—a at
of

i

inverted

"■"
The

—
tion.

-

-

i

_

_

i

.

:

i

■

i«

*

.

—

"

_

_

gain of 3.3

buteffect^

on

prices, .grease in total wellhead

our

[^nUaUyTntenskiefun^te1
recent

past

by

the

tressed tanker market.

This advertisement is not and is under

no

Lnditures

dis-

for domestic production averaged $3 4 billion per year,

The tank-

are!

of 16%

of

Continued

circumstances to be construed

as

offering, of these securities for sale or a. solicitation of an offer to
buy any of such securities. The offering is made only by the Prospectus.

•Atlas

Sewing Centers, Inc.

:

$2,000,000

6% Convertible Subordinated Debentures
/

Due November 1, 1974

The Debentures will be in
coupon form, and will
into Common Stock at $15.40

six

with

a

times

times

further
in

reflected

rise

1958.

1958.

a

ings,

largely

that

Price 100% plus accrued interest

may

be obtained from the undersigned only
respective States.

decade.

between

further

rise

the

group

contributed

The

the

Van

1938

eight
group's net

gains;
of

of

Alstyne, Noel & Co.

for¬

by

domestic

group's

McDonnell A Co.

Shearson, Hammill & Co.

Incorporated

Clark, Landstreet & Kirkpatrick, Inc.

Walston & Co., Inc.
.

Doolittle & Co.

,

,

Hanralian & Co., Inc.

earn¬

the

five international companies, rose
better than three for one in the

of

Copies of the Prospectus

in those States in which the undersigned may
legally offer these securi¬
ties in compliance with the securities laws of the

over

third

This

foreign

component

ponent

share.

Manhattan

to

The

about

eign

past

initially be convertible

"

per

net

com¬

last

Joseph Walker A Sons First Albany Corporation Herbert W. Scbaefer A Co.
November IS, 1959

revenue

$332^111^V^year'capItaTex-

more

acutely

an

of some 30 oil
for 1948 net in-

such

and

group

companies
over

income fig-

Chase

come

and

income, costs,




the

1948

trends

touch

your gross

representative
of

in¬
and

revenue

mates

m~ncliro

Price $14 per share

The

nf

d™d^

fr.
innr^ncino- i™
wnicn it liiciuaes ieabe cusls, bui.ii
measur® to rapidly increasing im- exploration as is capitalized, and

substantially in terms of percentage relationship to total wellhead
income: Heavy charges against

ures

ex-

heavy

unsatisfactory, price
J

'to

brought

creases

The

increased

Hutabie

ity.
ilv „.n-|p

runs,

or-a

day, equalled

per

prices, due to excessive

Sharply

rise in crude production, 1.2

year

crude

revenues

and net in-

about

pressure

lion barrels per day.
This was up
4.6 million barrels
per day

some

.

The 1958 decade
a

production

1,

income

come declined,

this

as $500 million per
year.
Even with
1957, -indicated crude the mandatory controls there has
producibility of almost 9.9 mil- recently been renewed
0f

Common Stock

gross income resulted

cor-

crude

against the 1957 average of $3.09.
a drop of 20 cents per barrel on

re-

ported estimate of the Council,

75,000 Shares

course

appraisal.

in

factor,

and
on

average
wellhead price and
bootstrap opera- natural
gas liquids as valued at
1
:
p—:—
cheaper price of foreign gasoline plants
by the Bureau of
®
of crude is a factor of long standing
Mines, we find that the annual in-

"rina-

«*r«y declined and this has been
an important element in' the Past
couple of years.

Council, has had

increase in producibility since the

sort

the

,

capita

the

Between

mid-1958

and

«

in

gas

discuss this separately.
mid-1956

This
This

related to the tre-

is

impact

hydrocarbon

exces-

increase in the 1958 dec- 0us influences have substantially
only 28% in the Past 4 eroded the 1957 advance in crude
yearsThe domestic industry, prices which at the wellhead may
based on figures of the National now approximate $2.89 per barrel,

million

Percentage
gains
in
demand
have been smaller in recent
years,
the

With de-

supplied only 36% of the

increased sharply its capital outlay in terms of money and, except
for the retrenchment year of 1958,

rose

Happening

past

Even though gains

thus

bring current problems into focus.

affecting

quent

capacity

a

in

10-year trend demand
ufJPfof" ade and

,

slowed down, partly because they
did, the production industry has

the

correct

in

ajn erroneous

What

on

effectively

and

views

market

revise

A

The industry

many of its

than

these

stock

surveillance

offset

reduction

rather

of ' product

in

be

industry's

products

The

1948

year

was a particularly ^strong
the fact remains that gross

mit

industry

million barrels per day in demand er fleet was seriously over-built in the
for oil and liquids, a gain of 600,- and there has been a cost revolu-

only moderately.

sustained

we

light

soft prices for products

in gas liquids and by in-

a

oventory* change factors.

domestic

'S ££*havetovofcted

than

judgment of many
well-informed people and cannot
taken

.increased

product

mand gaining more slowlv

[hfrd^C^'Ss tTe

doubled after the war, when the
price pressures of the war years
were released, In 1958 total wellhead income from crude was up
only 41% from 1948. In the last
10 years

of

—

emotional

the

than

nevertheless showed

rose

imports,

Pro" regulated products also.

less

rose

1958- Inventories rose in 1948 and
were reduced in 1958. Prices were
then and soff last year,
although subject w,hlle 111 1948 the element of price
excesses—represents sdvances growing out of the war

stock market

was

as

latter 1958 and partly anticipating
the
mandatory 'controls
which

through

years

to

increasingly

their1 yields.
voluntary import conopen
the loophole of

left

prices

My 'papep- will undertake to
show that; such impressions are
unjustified.
Nevertheless, the
,

thinkJhf
to,

be

,

domestic

crude

in

duction

itnhif mil y
^2? ?i
Vv!
il extll?§ulsh the
exploratory
effoit, with conse-

way

years.—Editor.]

price.
sold

remainder

foreign

n'l xto

possible.

as

industry

.

have

ex¬

of

Gross

the New York
Stock

chronic

figures have been compiled bv the author of this paper,

past

companies
listed

the

figures but our remarks
to spare you from them

much

tables

by

the

tion, prices and wellhead

of

produc-

then

try

^They

about

one-third,

~'fl
jB

-

ex¬

refining industry,
discussion
will
require

Our

indefinitely in

capital

penditures. We shall speak of unit
volumes and prices and of how
they were affected by trends in
domestic petroleum
demand, by
oi

million barrels

10

4

oils

in- product imports rose 500,000 barrels per day over a. year before,
partly r continuing the trend j of

:The gain
in °"r crude
somewhat

capital

4^»^^'r^eS!'-'tCon;crude

by industry.

imports, and

2.2

can

the: cost

the first quarter of 1959, as to both
volume and price. In that quarter

operating and ex- the rise in net
imports of 1.3 milploratory costs, impinged increaslion barrels per
day-for the
ingly
on net income.. This mci-: 10 years. The balance of the dedentally constitutes a
^complete mand increase is accounted for by

wnniH

cesses

of

day in the

As

have

.

and net income and how the latter
two were affected

continue

increase

per

ships

less

up-graded

the

heavy blow

i

our reserves.

by

trols

13

new

or

T-2's.

we

residual

product

per day in the last decade,

domestic- crude ;production

th*

also

,

Pessimistic

When

large increase
Producibility sinoe 1948.
Although domestic demand for crude
and ^liquids
gained 3.3
million

en

coste
costs,

rising

costs

™

for self-restraint

V

old

refiners

*n

the great bulk

the

imports,
needed

fss®acf .Pf...rWe>- 10-£3^ar ;■ creased only 1.2 million barrels
nroduct ion at
faa sf
d°n v'hp^i
production
nW ?er day.
This was much less than
steadily
declining
jts

''-ffskig
.

0f

small fraction of its

1G"

S refining and mar" barrels

a

explora

our

have
com-

ratio to capacity and
gross income

day if* 1968.

•

.

oil at half

carry

largely due to imports; and domestic production utilized
only a

+

■

per

One of the difficulties stressed is
gas prices, particu¬
larly since gas and gas liquids are expected to provide 10 million
barrels per day of oil
equivalent or 46% of total petroleum energy.
Another is keeping increased
imports in tight check So as ynot to

account for

Thir

encompassing imports, refinery
runs, gas and oii
prices, and producers'self discipline. Its
accept¬
ance,: he-says, by the public and the Government
can
make a
promising future in terms of renewed and continued earnings
growth.
The oil analyst offers
price, output, capital spending and other pro¬
jections for the next 10 years including a demand for
petroleum,
oil and liquids, of
Vfz% per year reaching 13 million barrels

earnings

,

though the Chase

kitWC°U

capacity.; Mr.

program

make the employment of

domestic

even

panics

the

on

A study of companies emphasizing
production suggests that, the

suits,
,

predicated

per day.:greater .than Ction in that-the big

the ;previous, .decade., ry'/'

The correlation between domes-

the domestic net income j tic crude production and increased
9n/y about 2» from-1948V domestic; demand has been poor,

groups

>

<rtl

of the Suez

year

(2105)

gJss
on

prop

page

14

>
^

If

Thp Commercial and Financial Chronicle

(2106)

basis

energy

The Economic Outlook for /

oaiifciS

The Domestic Oil Producer
Continued

day

from page 13

The in¬

erty account each year.
in

crease

relation

small

was

revenue

in

million

for

income

at

10%

of

rate

a

per

have

growth

a

rather

year,

of

■

than

Net

5%

offset' declining

allowable rates
development
increasing
the

by

operator's total allowable.
Petroleum

Energy

The discussion thus far has pro¬
vided

Barrels

crude

imports,

and

Total

6,2

will

re¬

of

trend

prices for all

hydrocarbons
liquids.
Of

total

which

last

oil,

—

petroleum

and gas

gas

petroleum

energy

supplied

year

nearly

three-quarters of national energy
use," gas provided 37% but brought
in

only

14%

of

your

wellhead

Therein lies the key to

revenue.

better things.

Gas has come a long
since the time when a gas
discovery was considered worse
than a dry hole, and we may not
way

realize how far it has

ing

in terms of energy rather

gas

than

View¬

come.

revenue

contribution,

ob¬
tain a vastly different picture of
demand growth, wellhead prices,
quantities of reserves added, and
the

we

To explore this picture we must
use for gas a basis different from
that which the industry as prac¬

tical people is accustomed to

ploy. It may put gas
equivalent basis and
equal 1
ent

worth $1

basis

and

and

a

pres¬

oil

say

5 cents.

gas

Mcf

25

say

barrel. It may use

worth

em¬

market

on a

In

es¬

25

Ivlcf per barrel and thus arrive

at

a

figure for oil. From the

en¬

changed

to

as

barrels

growth in equiva¬

and

liquids

gas

nearly
some

11

the

assure

continued

functioning of domestic
production
through
which
this
energy is provided, for the pro¬
ducing
industry finds the gas.
Seme regions are more prospec¬
tive for
to

and some for oil but
the American Gas As¬

gas

quote

sociation,

"When

dertaken

there

drilling
is

knowing; whether
will yield gas
will
On

be

feet

becomes

two billion barrels of oil,

5.4

agains-

million barrels

last year's crude

day

per

produc¬

tion of 6.7 million barrels
per day.
Where oil and gas compete, ther¬

mal

efficiency

of

gas

head

-

of

resultant

oil

both

or

pact of gas, but
this

for

factor.

will not adjust

we

To

obtain

total

demand for petroleum
energy we
must

add

the

oil

equivalent

of

of

moderate.-. The aver¬
wellhead price for gas last

last

year

for

was a

liquids

at

cents—a
of

petroleum

$2.29.

SI.97.

than

at

However,
vide

domestic

full

a

line

sources

of

pro¬

petroleum

whereas

buy gas from

The

weighted price

posted price of most
Middle Eastern ports.

hydrocarbons,
not

a

we

can¬

overseas.

price of 67

cents

barrel

a

for gas as energy equivalent
may
too low to be real, but it is

seem

real,
and

as

of

the sellers
distillate

ing oils

part

can

because

oil

burners

other

heat¬

testify. It is low in
the cost of trans¬

and

distribution is large.
operations have been es¬

These

ket.

of

and

In

growth of the gas

1958 the

national

mar¬

average

price of gas at point of consump¬

per

day,

for

oil

14.5

rather

and

energy

million barrels

than

liquids.

10-year gain

Much higher prices are

paid

for

barrel.

residential

necessarily

distribution costs
cost

of




the

greater. The

are

distribution facilities in

a

major city is obviously high.
The

been

costs

will

Gon¬

so
that, aside from reguinfluences, it is unrealistic

expect*.a rise in volume and
prices of gas matching its energy
impact.
Our
1968
projections
show gas subsidized less than cur..

.

the

latter must

leum

production

industry

has

supplies of energy. The moderate
additions to oil
years

if

are

our

of oil

reserves

in recent

frequently criticized,

current
reserves

problem
rather

were

than

as

one

one

production. Taking API
AGA reserve figures at face

of

and

value,

of

pet¬

past 10 years

amounted

rels.

to

Production

of

6S
was

barrels,

losses. Ratio
drawal
at

over

billion

bar¬

nearly

including

addition

to

43
gas

higher refinery

—

the

barrels—tend- to

-re¬

runs

duce

refining
costs
more
than
proportionately," the benefits are
negative when burdensome prod¬
stocks

uct

1956-58

result

and

they

as

again

this

excessive

refinery
by five cents

costs

refiner may lose

did

in

If

year.

reduce

runs

barrel, the

a

20 or 25 cents

a

barrel through

resulting price de¬
apart from what he may

clines,

in

lose

evaporation

carrying

charges.

reason,

losses

The

understand

cannot

and

;outsider
of

out

runs

that might be called

runs

"sinkrerrtental"

barrels,

they sink

the good
domestic industry,
tainly did this year!

because

hopes

the

of

they cer¬
The industry
is indeed under. Federal
scrutiny;
but there is nothing in the statutes
to
preclude
ordinary
business
prudence, still less to encourage

with¬

155%.

entirely

Total

satisfactory

reserves

on

an

keting?

as

To the outsider these di¬

visions

10-year rise

billion.

If

used

we

seem

.

seved

was threatened. ..
This is a strong

merchandise.
to put be-

case

for

the

be

the

To

*

suppose

an,

absurd-

percentage

a

the

of

that

fact

1958

of

a'year

was

economic welfare which continued

retrenchment and the ratio of ex-

development

penditure
higher in

much
years. In

would insure,

averaged

the-, public

to

outlay

other

1954-56.

was

recent

inclusive,

it

48-49%.
To

obtain

the

increased

well-

head revenues, we have three possible
sources.
We
must
depend

primarily on gas. and oil since
gas liquids will yield an increase
of about $600 million.

Gas

will increase sub-

revenues

stantiaily
need.

but

We

see

less

far

than

our

no

If

unfortunate

an

the

situation

application

tion to

risk

a

of

utility

due

to

nevertheless
decade.

project

of

19

but

rise

must

We

price

level

per

equivalent barrel.

rp0

they

in

this

per

1,000

jqon

fire and.new higher-priced congas

is

$2.1

place.

Our

increase

from

billion,

out

of

$7.1

Dilllon required.

This
S4.4

leaves

billipm

us

to

provide

Rising production at

the niggardly rate of recent
years

might
on

a

provide

10-year

$1.1 billion, based
increase of 100,000

barrels per day per year taken

Tight

import

clearly essential.

controls
With

mean

we
tion

see

them

at

are
we

might increase production 250,000

jn refining and producof

areas

crude

prices

danger involving
capital
costs,

and

Crude

prices must rise to provide
needed revenues and capital expenditure must be held down to
costs

keep

to

on

an

provide
of the

a

efficient
return

basis

for

There

of

category

tures,
of

to

of

give

1958, proceeded
only token heed

sonality and

as

to

usual
sea-

cultivate the incremental barrel.
Each year de-

mand

to

declines

2-2.5

million

bar¬

much

a

excessive

days

The

chain

in

In

expendi¬

Texas

side

is

that,
production,
produce at

than twice their allow¬

more

ables.

broader

other

exempt
wells could

existing

any development
drilling - is redundant.
But
re¬
quired offsets must be met; and
with allowables declining, there
is strong pressure to develop for
production, for the allowables that
a sense

go
with additional wells.
Such
development adds each year huge
sums
to
capital expenditure.
If
production were anywhere near

MER, which

we hope it will grad¬
approach, the situation

ually
would

be

different.

meantime the
to

can

not

needed

there
omies.
ratio

These

of

discussed.
rection

effort

the

if the

essential

are

expenditure to income is

held

be

in

for
produeibility,
large capital econ¬

be

can

If

industry does all it
down
development

hold

down,

For

previously

as

in

success

this di¬

whole-hearted

a

industry

will be required.
Another
important avenue of capital

that

is

of

the

widest

possible spacing of wells compati¬
adequate drainage. The

ble with

trend

current

should

most,

be

in

this

extended

along

tices which

with

direction

to

all

the

utter¬

other

prac¬

reduce costs in

can

ploration, development, and

ex¬

pro¬

duction.

The
In
in

the

Current

demand

carbons

for

will

agewise,

the

gain
hydro¬

petroleum

be

due

Decade

decade

current

to

smaller

the

percent¬

higher base.

We project a growth rate of 4.2%

The gain in barrels per

per year.

day will
of

oe

huge,

some

7.3 million,

which somewhat less

will

come

duction

half

from

^ain

total

summer

trough, and the fact cansuccessfully ignored either
by refiners or by the setters of
allowables.
Although it is* true

matching

not

the free

Last

oil

more

than

and

liquids.
The
come
close
to

may

that

of

oil

demand

foreign world as
year such
demand

million

than half

from marketed gas pro¬

and somewhat

rels per day from winter peak to
be

marginal

whole

from

apart
MER

Crude

promising until refiners,
forgetting the
severe
readjust-

is

however.

nine

the

seemed

of

a

development, through required

business,

prices cannot rise if there
are
^e recurring price shambles
in
products>
due
to
excessive
reftnery runs. The 1959 outlook

off

set

can

offsets.

most

Points

a prob¬
capital expendi¬

discovery

a

economy

ment

oil

prices would

industry,

Danger

,

owners

their

fjrm

and

revitalized

a

distress

tures. Under the lease and royalty

to

stantiaily rising trend of produc-

and

comparing with
a
rise of
about 5U cents in the past decade,
Old low-priced contracts will ex-

revenue

*'l

domestic producer a sub-

ade,

projected

threatened

straightjacket on prices, whereby one
governmental agency keeps watch
on prices of petroleum and
products
and
another applies
utility
regulation to gas sold at 67 cents

cubic feet, up 7 cents in this dec-

tracts will take

resource

industry's case is in
interest, it deserves

the

remove

the

1960 well-

a

cents

basic

governmental support.
Only the
government can see to it that tight
import controls continue and can

_

economic

oil

a

regula¬

business and to

existing
regulatory
confusion.
Perhaps in the absence of a Gas
Act, prices will continue below
their

the

of

by

*

In oil production we see

set-up

supplies.

'

lem of excessive

prefer to rely on domestic rather
quality
than foreign sources for energy Of

figure, the re- itv for the, sake of illustration,
capital outlay to well- we shouldn't care to have our
head revenue, we have chosen a electricity coming in large measconservative 43%, comnaring with ure from gigantic generating sta39% in 1958 and ' 35% ' in 1948; "lions in Latin America,'the Midthus reflecting higher costs.; The die East, and the. Far East, with
43% will certainly be low if the a ]1,ew station building in North
industry does not use as fully a^ Africa. . Substantial
self - suf'fi/
it can the opportunities for capi-f
9^enc^ *n Petroleum energy prom-r
tal economy on which we shall ises
not only military security
comment later. This is clear from and economic security but also the

$3.
was

energy as a whole. Our 1968

be

resulting rev-Hie American public.. The
correspondingly nation certainly want£ the gas and
the sum we think nec- under
any
circumstances would

of

latiori

head

highly efficient in providing

billion

per

in

gas

northeast, where transmission and

million

in total barrels

prices,
would

residential market is

10-year
demand

.

—

9.1

5.7%, rather than 4.6%. The

transmission

gas

can

problem in units,
tion—industrial, commercial, and.
since demand is vigorous.
The
residential
was
46 cents per
problem is gas prices. Gas
the
1,000 cu, .ft.,( equal to $2.59 ,per
premium fuel—sells at a discount,
barrel. The

The

growth rate of this total
was

figure

lower

As

67

This is somewhat higher

the

crudes

at

gas

liquids.

thus becomes

that

luture

duce the needed reserve additions,

hydro¬

weighted average; price
per barrel. Oil and gas

SI.99

of

and

it

for

industry effort to
continue along pastJines and pro-

blend of oil at $3.01,

the gross reserve addition
roleum energy in the

1958

An.

to

cue

granted

1958. The

enues

essary

that, or 67 cents a barrel. The
price paid the domestic producer
carbons

The

be S7.1

short

year, 11.9 cents, becomes 5.6 times

oil

Our

would

is

marketed

gas
to the customary
figure of demand for oil and gas

efficient,''.that

satisfactorily

supplies,

from

year

basis the well¬
petroleum hydro¬

energy

price

age

averages

higher, increasing the energy im¬

needed.

that

incremental

_

un¬

dry.'^

the

carbons

or

is

way

the

well
or

no

the

trillion

billion

Thursday, November 19, 1959

.

engaged in a vicious
high; projection shows domestic sources
circle of excessive runs resulting
cnougn to provide, on the basis of providing
about
88%" * of
such
in
distressed product prices
a reasonable percentage, sufficient
energy in that year,
which, in turn, require still higher
capital funds for a substantially
The essentials of support inruns to achieve still lower
"costs,"
greater industry effort. The cur- elude continued and tight import"
and so on. We respectfully
suggest
rent
decade
appears
to
require, controls, a relatively full rate of
that runs 5% lower than the re¬
reserve additions on the order of
domestic
oil
production,
and
fining
division
normally
plans
20%
greater
for
oil
and. 50%- higher crude prices, as well as the
would
make
the
difference be¬
greater for gas, as compared with revenue
contribution of higher
tween a livable situation and the
the past 10 years. Ccsts are, up volume and prices for gas and
gas
recurrence
of
intolerable
situa¬
substantially and seem likely to liquids.
And whatever we may
tions—intolerable, we believe to
rise further. Our 1968 projection think of import allocation methods
the industry, to its stockholders,
of units and prices leads us
to we must recognize that without
and to the national interest. The
total
wellhead
income
of
$16.5 mandatory controls the gradual
long-term welfare of the "con¬
billion, a growth rate of 5.8% per extinction of domestic production sumer
is
not

day of oil equivalent or

per

of

is

revenue.

10 million bar¬

importance the prime one and there the aver¬
of gas and liquids is
highlighted.* age U. S. price in 1958 was 98
Last year's marketed gas produc¬
cents, equal to $5.50
tion

gain
Even

rather; than ineificiency* in the cost of our energy rently by oil, but, gas will still
supplies.
* yield only 21% of revenue against
ine
approach
on
an
energy 40% of petroleum energy and oil
basis," ratner man
through
on must continue to carry the main
alone, indicates that domestic pro- burden of providing funds.
auction

of total petroleum energy. It

sential to

lent

and

gas

is vital that the nation

Mcf, the ratio used by Bureau of
Mines energy studies.

point, demand trend is changed as
to percentage growth and
vastly

against

addition of oo bii *
These figures sag-

energy

barrels.

capital expenditure and wellhead

mission

On the energy
basis, the proper
from the consumer's stand¬

$1.65

revenue

distribution

tiniie;
latory

years

that

dicates

ergy standpoint we must take the
barrel equivalent of gas as 5.604

one

be

.

.

The alternatives become clear,
If the * production industry does
not continue to explore in its acper year, in contrast with one of
needed revenues. Tney aie essen- customed manlier, we shall sooner
8% for marketed gas productions wai to the industry's long-term' or later lack not1 only
indigenous* what at times suggests suicidal
Gas
liquids, increasing from/ a functioning', wmcn-haa-beeh serl- oil Supplies but also the gaT andv mania. Can it be that this huge
small base
had an
even- better
has*' become - compartousiy threatened by ine treiias oi
gas liquids which by 1968 may industry
growth rate than gas. Over 42% recent years.
*
represent close to 5C%* of petro- mented, so that the zealous efforts
of individual departments defeat
of petroleum energy used, in 1958
"We
approach the question of leum energy used. If we support
was
provided' by
gas
and gas capital funds by way of an esti- the domestic" effort, we can have the overall interest? Top manage¬
liquids combined.
mate * ol
wellhead
revenues/ in the needed supplies
of gas and ment bears a heavy burden but
1968. There is a fairly consistent gas liquids and can continue sub- shouldn t it look hard, in detail,-at
Here we have a prime point for
what goes on in refining and mar¬
the future. Our 1968 forecast in¬
percentage relationship
between stantiaily self-sufficient in petro-

is

tablishing the finding and devel¬
opment cost of oil, it may credit
gas additions at the equivalent of

billion,

iu

tnergy

together brought

of reserve costs.

area

$34

past

me

crease

per

This

aunng

provide

the

needs.

short of the

expenditure oy ine production

production, con¬
only 19%
of * the :in¬
had a growth rate of 2%

demonstrates

revenue

"

'

Domestic crude

rels

its

would

and

tributing

46%

quire utilization of huge shut-in
production, a dead investment of
many billion dollars, and a firm

revenues.

-

•

can

necessity that
the
public and the government
support the industry in obtaining

*

>

we

per year and

of

go

L gest efficiency,

production_.-i~„-—Aj—1.2
Gas liquids_J.7.-..__m-^.-~-i----0.4
Inventory change factor-..0.4

of energy and

It

nere

point out mat estimated cap*r

lion

products

then provide

so."

moder-

been

then

can

gross

2'.9

gas..—

will

continue

.Million

:

u

for the pessimistic
industry's outlook, but
this is only part of the story. The
picture changes radically when it
is examined from the standpoint
of
petroleum energy.
This ap¬
proach shows that domestic pro¬
duction is a highly efficient source
support

view of the

re-

billion

remember

totaled

Crude

yearly in gross revenues and show
for a 10-year period a decline in
net income.
However, a substan¬
tial element in this spending Was
drilling
for
production,4 ralhei
than produeibility, an effort to

these

day

per

$2.75

linding ana development coots. W.e
ial

per Day

than" to

less

barrels

-

'

or
Marketed

more

3.3

industfy

■■

-

into tne increase of crude to<$3.50 per
highly complex and cuificuit as-:, barrel / would
be
necessary
to
pecis of finding experience*, and
reach the needed sum.We must

Energy, 1948-58
■

of

nas

cannot

1908.

of

cost

additions

We

am.

Increase in Demand for Petroleum

to the

spending. On that
kind of spending some other in¬
dustries might expect to increase
net

million, against
oil and liquids.

6.2

was

end

capital

serve

82 billion

were some

the

at

ine

.

barrels

per

a

day,

in

whole.

was

and

7.7

it

Volume

190

Number

5900

.

.

The Commercial and Financial Chronicle

.

(2107)
may double in the current decade;

with
per

growth

a

since -the

Our marketed gas production is

growth rate of 5%

a

cated

per year to reach about 18 trillion

feet

in

liberal

1968.

6%

of

in

Regulatory

Although

-

lower

amount

of

imports will have an impor¬
tant bearing and this will be in¬
fluenced by Canada's policy as to
exports of gas and oil.
Our pro¬
jection is unlikely to be attained
if the domestic finding effort is

crippled

by

inadequacy

nues.

oi

reve¬

v

-

For petroleum

liquids,
31/2%

demand, oil and
contemplate growth of

we

year, which we hope
may prove conservative, to reach
13 million barrels
per

per day in 196*8.
petroleum''1 demand

Domestic..
will

rise

day

on

crude

high

3.9

million

this

basis

barrels

per

domestic

and

production must obtain a
share of the increase.
We

project for domestic
growth

rate

of

oil

output a
giving
an

3%,

average increase of 249,000 bar¬
rels per day against
119,000 in the
last 10 years and amounting in

this

decade

million

to

barrels

production

to

day.

per

increase

an

day,

per

believe

2.5

bringing

million

9.2

We

of

barrels

that,

even

the lower estimates of current

on

producibility,

production

our

can

accomplish this gain and still have
pare capacity.
If the higher esimates of producibility are more

orrect, crude production
rease

of

rease

in-

can

than that and the in-

more

imports

held

be

can

own

correspondingly. We assume
figure for gas liquids, subject to

he uncertain

amount

be

to

used

miscible

n

floods, and reach a
igure for imports as the foaiancfactor.

ng

Since
f

prices,

gas

hat

have

we

prices

roducts

we

of

he general

already spoken
will note here
petroleum
and

low

are

in

relation

to

commodity index and

xtremely low in relation
•ommodities

steel.

as

such

to

On

this

as

is alone the government should

ot

"object to price rises,in crude,

ver

period, equal to whatever

a

dvances

in

the commodity
If that should rise 2% per

ndex.

occur

crude prices could parallel
rise and thus reach $3.50 by

ear,

he

968.

the

commodity index does
that much, a crude price
of that extent will still

ncrease
)e

added to have

duction

essential

to

attainment

leeded wellhead
rnude

and

revenue.

iverage prices of
>asis

of

968,

our

our

of

the

Taking

liquids

gas

the

at

1958 and

a

ratio

•

sisted

recovery
than

good reserve-pro¬

the

on

projected volumes in
estimate
of
needed

in
that
year
could
be
eached only if wellhead gas went
0 29 cents, up from
12 cents last
'ear.
Such a rise in gas seems

is likely to rise
.proportionately, we

have

could

,

in

life

1968

indicated

an

point the investors may like oil issues
and mutual funds.
If has
If the industry really does also
become an important factor
the job that mow confronts it, they: in
the
underwriting and distribu¬
may even become devoted—with tion of local
and national issues.
better basis than the apparent de¬
Registered representatives liv¬
and public can be remedied by votion of
1957.
ing in Greensboro are: Kenneth C.
this approach. It seems vital that,
Wible and C: Franklin
both public and government re¬
"An address by Mr. Russell before the
Miller, Jr.,
Production Session during the 39th An¬ Vice-Presidents;
and Willard C.
alize tne need to utilize more
fully nual Meeting of the American Petroleum Robbinsand
Stephen
L.
Wilkcrthe producibility and to
obtain, Institute, Chicago, 111., Nov. 10, 1959.
son.;
Others, all stationed within
through prices as well as unit
the state are Vice-Presidents R.
volume, funds for the still greater
Thornton Hood,- Kinston; Robert
tasks of the-future. -

McDaniel Lewis Co.

v

While

the

failure

With crude at $3.50 the revenue

ontribution of higher crude prices
vould be $1.65 billion in 1968, as

ompared

with

1958.

An

average

rude price advance of $165 milion a year for
10 years would
mount to 33/1000 of 1% of gross
ational product now approximat-

$500

ng

eems

billion

per

year.

trifling price for the

a

ion to pay for

This
na-

security in energy

upplies.
As previously noted, total wellead value in 1968 is projected at
16.5

billion, representing a
per year from

illion
If

our

which,

1968

of

$7.1

expen-

billion

right, the current
witness total capital

ay

illion,
on

$7.1

for

production

is

decade
expen-

of

$50-55
to compare with $34 bil-

in the past

before

rels,
of

29-30

the

billion

be -20i%(

addition

gross

barrels

Addition"

production.

billion, would

the

of

,

of

more

years.

3d

than

past

10

.

Secondary oil should provide a
large fraction of the requirement.
Paul D. Torrey's secondary stuuy
showed 43 billion barrels
able

by

recover¬

injection,

There

will;

policies

have

economic
awaits

conditions.

This

oil

the

application of known
technology
wfticn
is
improving
rapidly.
Assisted recovery with
proper selection of projects rep¬
resents big oil on a satisfactory
economic basis.
What
of

new

about the

primary source
reserves—discovery? Gas

finding has been aided by the good
movement of gas

to market. Noth¬
could-stimulate oil discovery

ing

than

more

improving trend of

an

production

and

firm

prices. The
nearer the
industry gets to MER,
the stronger will be the stimulus
from this direction.

Technological
advances will neip—new
geologi¬
cal ideas, new geophysical attain¬
ments, greater success in finding
the

elusive

but

prolific

strati-

graphic

trap, improved drilling
techniques to
probe
the
great
depths of sediments as in the

Louisiana Miocene.

There will be
hew basins, new provinces. Apart

from

secondary

also

operations,

well evolve as a source of
gas and
it would be logical to
bring addi¬

thus

oil

imports

including in

ada's

exploratory

from

nportant subject of
As

958

to
on

oil, the 10
balance

On

the

foe unadep'both '.to-1 keep

that the

improving trend of

revenues

tion

in

finds

net

years
were

through
not

bad




.adequate

income.

The

is not going to favor this
until -it shows< renewed

be

of mature self-restraint

already

partnership

is-

now

c

o

m

p

in

gross

reflec¬

since

investor

The
a

the

y

n

37

ago has
located

been

in

1924

Jefferson

Standard

Bldg.,
it
Marsnall

exercise

H.

where

now

has

spacious new
quarters on

Johnson

during the

Goldsboro; Earl H. Lanning, Ra¬
leigh; Jarvis J. Arthur, Jr., Wil¬
mington, Robert J. Clemens, Dur¬
ham; John H. McKinnon, Red
Springs.

W. Vieino. Joins

Stewart, Eubanks

started

business

years

representatives Robert L. Abbott,

cor¬

a

which

industryearnings

expected without the

a

poration.

-the ''.in¬

dustry efficient in its provision of
energy supplies and to make sure

the fifth floor.

(Special to The Financial Chronicle)

SAN
J.

FRANCISCO, Calif.—Walter

Vieino

has

become

associated

with

Stewart, Eubanks, Meyerson
Co.,* 216 Montgomery Street,

&

members
Pacific
He

of

the

Coast

New

York

Stock

formerly Assistant Man¬
of the trading organization

was

ager

for

the

San

Francisco

ii»
companies
The
Cana¬

participate.

In the nevy set-up, Marshall H.
period of over-capacity.
industry is unaccustomed to Johnson, with the firm for 12
self-restraint which may therefore years becomes President and
prove difficult, but it is high time General Manager, and has charge
that we
have
something better of corporate underwriting and
than chaos. The industry takes trading.
McDaniel* Lewis is now
justifiable pride in its past ac¬ Chairman of the Board of Direc¬
tors
and
remains-executive head
complishments, an outstanding ex¬
Edward R. Lowry,
ample of national service through of the firm.
free enterprise. It has been said Vice-President, formerly of Knoxthat no man- is free who is the ville and Johnson City, Tennessee,
head of the Municipal bond
slave either of his habits or of his is

oil-only

appetites.

The

mark

of

freedom

for

department and Assistant General
Manager. E. Kemp Reece, Vice-

man or industry is the capabil¬
ity "of self-discipline. It will not President, heads the trading de¬
the least accomplishment
of partment, and Hal L. Simpson is
this intensely competitive industry Cashier.
McDaniel
Lewis, the founder,
if it can at last meet its urgent
need for self-discipline, if it can entered the municipal bond field

be

in 1922 and soon became a
special¬
states¬
ist in the preparation and sale of
manship to overcome its internal
North Carolina
city and county
difficulties, in which the interests
issues, and was the author of a
of both industry and nation are
short story on this subject. In the
deeply involved. With these stipu¬ early thirties the company started

muster

the

maturity

and

ter. And

who

knows

—

at

some

trading

Jefferson

Insurance

bank

Co.

stocks,

into

Standard

shares

then

nationally

Life

and

Vickers,
been

out

industrial

Christy

formed

Broad

&

Co., 'Inc. Las
offices at 30

with

Street, New York City, to1
in

engage

Officers

securities

a

are

Sidney
President,* and
s

This announcement is not and is under
of the securities for sale

securities. The

or

as

no
a

an

offer to

were

Manley, Bennett Appoints
DETROIT,

Mich.

Grambau

has

—

Herman

Although
the

in

appointed a
mutual fund representative in the
investment trust department of

Manley,

Bennett "&

Building,
York

members

and

Co.,

past decade

cellent, gas
step up; in
at

line
the

with

New
Ex¬

changes.
Mr.

Grambau

supervisor
at

of

was

formerly

salaried

personnel

Vickers, Inc.

buy

as

any

an

offering of

any

of such

offering is made only by the Prospectus. '

and

of
ex¬

to

160,000 Common Shares

increasing

reserves

end

around 22 years.
mand

were

finding will have

demand. Ratio of
duction

additions

of

($1

to pro¬

1958

Par Value)

was

On projected de¬

assuming

a

ratio of 19

at the end of' 1968, reserve
additions will have to average 25
trillion a year until then—rather
than the 17 trillion of the past

Price $15 per

years

Share

decade. There

seems no doubt that
there is plenty of gas to be found.

£opies of the Prospectus

As to long-term energy
shale

reserves

Middle

are

sooner

or

later

from

shale

become

will

for

and

makes a
strong
public and governmental

of

the

be obtained from the under¬
applicable

may

legally

Securities

Laws.

A. C.

Allyn and Company
Incorporated

"

Walston & Co., Inc.

Straus, Blosser & McDowell

industry's

Golkin, Bomback & Co.

pe¬

troleum
energy rather than oil
alone indicates a vigorous growth
case

under

Incorporated
■i)

Howard E. Pill & May, Inc.

conclusion, the basis of

support

securities

Bell & Farrell, Inc.

commer¬

cial,-probably through a combina¬
tion of technological advances and
rising prices for hydrocarbons.

demand

these

Blair & Co.

at

Eastern magnitudes.

Hydrocarbons

offer

sources,

measured in

may

signed only in States in which the undersigned

However, addition of 25 trillion a
year
is a large order. It seems
likely that domestic supplies will
be supplemented from
neighbor¬
ing sources.

objec¬

Courts & Co.
November

17,1959

Cruttenden, Podesta & Co.
De Young & Company

Buhl

the

Stock

of

Detroit

Frantz Manufacturing Company
reserve

J.

been

better than we with the Middle

gas

J.

partners in Vickers Bros.

East, especially at distressed
tanker rates.

Vickers,

William

Secretary-Treasurer.
Both were formerly with
Vickers,
Angelus & Daly, and prior thereto

circumstances to be construed
solicitation of

business.

G.

Jr.,
Christy,

local

branched

traded

Formed in N. Y.

that, since on an
they can compete

basis

of

Vickers, Christy

dians might like
no

office

Blyth & Co., Inc.

Canada,

promise,

and

Exchanges.

current

This

which many American

of

reserves.

realistic

E. Lee, Jr.,
Greenville; and Rich¬
ard M. H. Stock,
Morganton; and

set-up Can¬

our

Conclusion

comment

be

refinery" runs.- AIT
feasibie/jeconomies-will have to-

it
lations, a substantially rising trend
should not be difficult to equal
of
production
and
firm prices
the reserve additions of the past
should permit it to do much bet¬
decade. Furthermore, Canada
may

10 years.

Reserves
must

to

to

as

and, ' as -Of
Jan. 1, 1958, 13 billion barrels re-^ growth and the capacity to extend'
coverable on the basis of the then- that growth. Neither of these can

In
We

Now Corporation

of

when

gross addinon of 36 billion bar¬

a

least

bout

itures

of

75%.

figure for capital

in

iture

dollar increase

a

or

establish

about
11. years,, disturbing
implications,- with its
multiplied by' 9.2 acceptance by public and govern¬
GREENSBORO, N.C.— Greens¬
minion barrels per day of pro¬
ment,'the future can be promising. boro's
oldest independent invest¬
duction,- would represent 37 bil-... The industry cannot expect any¬
ment
banking* firm, McDaniel
lion
barrels.
This
would
be
a
thing, so good as. the first 10 post¬ Lewis &
Co., formerly a proprie¬
better-quality, reserve as to pro¬ war years.,.- through- 1955, but it
torship and
ducibility than the present one. To can expect something much better
more
recently
reach-this figure we would need* than the 10
years'ended with 1958.
reserve

rowth rate of 5.8%
958 and

to

the oil industry's case would have

•evenue

lighly improbable.

again.

,

at

more

tional

If

lot rise

1958

on

years.,

ours.

developments
-

based

the end of: 1968,
facing the following decac.e? Since
will production from secondary or as¬

than
Trie

life

reserve

How much oil would have to be.

the

rate

a growtn

a gross

billion--barrels

production is about 1213

a

market, we know

influence.

an

perhaps

-

expect

their

projections

have

is

projection.

-

gas utilities
of

This

ad-*

tives,abased- on. the - provision of
by "needed gas. supplies 1" and of: sub¬
discovery, extension, and revision. stantial self-sufficiency in energy.
After production of 23 billion bar¬ It may be that
past difficulties of
rels, reserves rose 7 billion. Indi- ; communication between industry

year.

projected at

industry-had

7%; dition' of -30

of about

rate

15

Mullaney, Wells & Company
Kay, Richards & Co.

V

16

With Sheboygan

MUTUAL: FUNDS

Inv.

Investment

Sheboygan

and

Co.

with the fickleness of their, weather, often
assuage a stranger complaining about their climate by saying: "If
you don't like the weather, stick around." < Veteran managers of
investment portfolios,
no
less aware that the market climate
blows hot and cold without warning, might well give the Texans'
advice to those who fret about the state of the marketplace.

—

Bryon &
.

Company,

engaging

is

Inc.

in

a

In recent

securities business from offices at
2 Park Avenue.

MUTUAL

INVESTMENT

climate

'

*

"Dividend. Seiueit

.

'

FREE INFORMATION
FOLDER AND PROSPECTUS TO

DEALER OR

and

NATIONAL SECURITIES *
RESEARCH CORPORATION
Etiabliihvd 193 0

120 Broadway,

lists

Now York 5, N. Y.

of

stocks

.

Early this

There

was

no

scramble to

rate

bond

way

in

year

'

18s1)

(established

2 Penn Center Plaza,

•_

3%
•

L t\

of

share

a

;•

V /

v

r

sponsored

Insur¬

Nationwide

by

the

in

about
earlier.

year

a

elected Leon¬

Abacus Fund has

Sheriff

S.

Secretary.

as

A

in the New York law
of
Cleary, Gottlieb, Steen

firm

Friendly, who resigned to be¬

J.

a

come

judge of the U. S.

Court

of Appeals.

was

last

months

10

rose

to

$8,653,636.

so-called

bonds,
stocks, 1.59%

corporate

common

receivables.

and

Inv. Ass'n of N.Y.
9th Annual Dinner

the
to

New York will hold its Ninth An¬

Dinner

the

glamour stocks

Fund,

at

it

it

it

annual

its

that

assets amounted

This compares with
the time it was
earlier.

$950,000

In

reports

Inc.

net

are
sellers of stock on balance and
showing increasing
interest in liens it may very well be that an ancient Wall Street
shibboleth has gained new
acceptance.
That maxim holds that
'•when yields from stocks
drop below the return from high-grade
bonds—then sell stocks."
-

for

of

their
the

12

five

its

net

per

by

Series,

up

were

and presently Chair¬
of the Chase

20%

to

Board

Bank, will address the

Manhattan

membership and their guests.
starts

Dinner

will

epektails

at

7:15

and

m.

p.

be served

at 6:15 in the Palm

starting

Court adjacent

the Starlight Roof.

Denschor Branch
MIAMI

Realty

BEACH,
and

Fla.

Denschor
Corporation

—

Trading

branch

of New York has opened a

reg¬

Stock
$11,74; the

Common

the
,

share during

Gains

months.

istered

increased

funds

assets

McCloy,

J.

Commissioner

the

Sept. 30 Frank¬
Custodian Funds disclosed that

four

High

the

of

fiscal year ended
lin

S.

U.

former

to

report

Tuesday, Dec. 15,
Wal¬

John

dorf-Astoria.

for Germany

are

aren't

on

the Starlight Roof of the

man

Energy

of

Association

Investment

The

if

if

it

asking them¬
already being too
liberally appraised. If they live by such traditional yardsticks as
price-earnings ratios, then the answer not inlrequently is an
emphatic "Yes." If we are undergoing a period in which the
equities

for
22%

sales

Fund

Wellington

made

share—

founded four years

issues), they also

and

"preferred stocks and 2.85% in

cash

nual

*

While

these

of

Hamilton, he succeeds Henry

and

of Oct. 31

of

a

partner

as

and electronic

assets'iiit

net

period,

in

55.35%

at

the

•

„

is

it

if

they have been attracted to

•

corpo¬

on,

a

.

^an¬

the fund had
40.21% of its assets in U. S. Gov¬
ernments

higher than

■

30, At the close

June

on

latest

of

nearly $17,000,000—both

its

that

ance, reports more than 1,000,000
shares outstanding and net assets

100%

.

.

30, an
87% gain over the level ,of one
year earlier: Net assets pgr share,
however, dropped: .to; $7.f2' from
$7.39

Foundation,

Mutual, Income

is

$9,127,992 on Sept.

record

,*

if

,

DivestorsTr, us

General
nounces

of

disbursed

•"

/

some

half

*

•,

*

with 2/100ths

Gatineau

of

Machines,

Mining & Manufactur¬

glas.

out¬
This is at¬

-

Managers of investment portfolios are not unaware that bond
yields these days are the highest in a generation. At the same
time, they have seen returns from common stocks go into decline.
age

Minnesota

divi^ Paper and Owens-Corning Fiber-

a

second

compares

$117,288,000.

whether

dividual commitments were in In¬
ternational Business

share of the

a

25.

the

to

and

,

office

at

4720

Alton Road

under

the direction of Dr. Morris Schor.

Phila. 2, Pa.

5-3311

Klngsley

This is not

NAME.

an

The Funds Report

ADDRESS.
CITY

STATE.

Investor

purchases

of

shares

in

sociation

mated

This

EATON i HOWARD

of

Investment

slightly

was

$188,315,000
ber,
total

Assets'

but

invested

above

under

tual

fund

month.

.

the

funds,

currently

hold

of

on

the

31,
at

Asso¬

the

end

of

end

of

...100,000 Shares

;

Prospectus.

-

The Scott & Fetzer Company
Common Stock

approxi¬
of

all

($5 Par Value)

*,

'

,

*,

.

York

Exchange.

The popularity of accumulation
plans for the regular monthly or

the

to $15,compared

$14,746,405,000 at the
Assets

Stock

mu¬

during

amounted

Oct.

155

offer of these securities for sale. The offer is made only by the

are

among an esti¬
3,500 ^securities of some
2,000 corporations, the Association
reported,
adding
that
mutual

in "Septem¬

slightly

They

September.

phnc*

funds

the

members

rose

080,583,000
4

mutual.

$12,-

$170,563,000 mately 3,6% of the value
^reported for October, 1958,. /.equities listed on the New

ciation

with

of

totaled

widely diversified

Compa¬

-

Total net assets of the

teUe<*

a-year-ago

218,441,000.

nies.

CONSIDER...

^

October

investment
companies
during October totaled $183,083,000, according to the National As¬

open-end

coro®u

by

-

S8

.

..

ing, Eastman Kodak. International

declared

Nov.

on

1959

last June.

funds

Members New York Stock Exchange

standing

tributable

than $10 million worth

space

Mo¬

it

^

of stock, believed to have been the
holding of a leading mutual fund. The yield on G. M.'s $2 divi¬
dend, around current levels, is a shade less than 4%

(the

Inc. reports

American

was

it

just one week ago that a secondary offering
shares of General Motors Corp. at $50.75

was

202,860

selves

DISTRIBUTOR

if

try holdings at the close of the
period: electrical and electronics,
18.88%; chemicals, 15.14%; paper
and forestry, 11.33%: glass, 9.97%,
•and petroleum, 8.94%*. Largest in¬

for each of the 855,716 shares

to get it is

average

place

stock of Gatineau Power

common

ard

wore

this month.

It

£Pa/mebfoc/c V

.

United Aircraft. The
single increase
was
in
Amerada Petroleum. Major indus¬

y.

Fund

Abacus

stock.

average

more

Request

if

biggest

*

dend of 3/100ths of

yielding 4.1%, compared with less than 31/2% for

was

Fund

it

year

They want a capital gain, and the only
through stock." And in the forepart of 1959 the

of

on

share.

per

Jersey and

tors, purchased nearly live months
ago. The profit already tops 100% .

buy.

income.

set

Prospectus

Series declined

Bond

.

Merck &

largest holding in its Capital

Growth

while, the continued rise in stocks (halted this summer) dropped
the yield from equities often much less than 3V2%. United States
Steel, as a case in point, returned less than 3% until price erosion

A Mutual Investment Fund

i e

$15.37 at last Dec. 31. There were
large decreases 'in. holdings
of
Co., Standard Oil of New

its

endow¬
and uni¬

prominent
*'

■"

■.

Distributors Group,

the

bonds also went begging. As Dean Witter's
Mr. Swinarton explained it at the time: /'People are cold to 4%
,

in

on

colleges

the

have

.

the return from bonds became even
more substantial:
falling prices made 5% returns quite common.
And, of course, the Magic 5s have all but made 5% a floor. Mean¬

INC.

up

$5.42

e r

.

1

no

of others.

of

in such holdings.

country considerably.
Magic 5's took everybody

As. the

FUND

/

versities. The tally shows common

the

scores

the

PHILADELPHIA

the

S

.

the Preferred Stock
2% to $5.70. Assets of

and

$5.87,
Series,

"Brevits,"

publication,

funds

•

Co.,

&

the latest reports

ment

The public clamor for the
so-called
unawares—Treasury aides,
Wall Streeters and the banks all across the country.
As Robert.
Swinarton of Dean Witter & Co, said: "People called and phoned
—they all wanted to know how you go about buying them."
Yields, in stocks or bonds, meant little .until the advent of.
the Magic 5s.
In a soaring stock market,, with, everybody: seemingly convinced that the future held out the prospect of 10-cent
dollars, the stress was on outcome, not income. And,; for that
matter, yields held out scant attraction even before the market took
' off
last year.
Mutual fund managers have no' difficulty in recalling thai during the stock market decline of 1957, yields of 7%
and more were available in such issues as Continental Baking,
Chesapeake & Ohio Railway, United States Lines, R. H. Macy

FUND

Sanders

bi-weekly

days the winds that have swept Wall Street, from

has

course,

*t

..

desire to alter the course of. stocks and bonds.
But the success, amazing to the Gover nment and Wall Street, of jts
more than $2 billion issue of 5% notes has altered the investment

WRITE FOR

Income

'

Vance,

graveyard to river, have caused considerable erosion in stock
prices. Meanwhile, another wind out of Washington, stemming
from the Treasury Department, has made for balmier days in
the bond market.- The Treasury, which has its own fish to fry,

\

YOUR INVESTMENT

to

'

of

A

familiar

Texans,

Bryon Co. Formed

MANHASSET, N. Y.

begun.
Redemption of shares by inves¬

new

In its report for the nine months
declined slightly in October,
totaling $53,309,000, compared with- ended Sept. 30, General Capital
$54,057,000 the month before, and Corp. disclosed that its met asset
value per share increased to $16.33
$61,270,000 in October, 1958.
at the close of the period
from
0
O
ff
*
'■

Climate

The Changing Investment

of

Co. of Sheboygan;

Heronymus &

.

officer

an

was

-12%. to $10.74;
s, up^ 8 % - to

Utilities Series, up

September

in

as

t he

28,883

Thursday, November 19, 1959

.

.

tors

Co., Inc., Security National-Bank
Building.
In the past Mr.-Ball¬
schmider was with White, Weld
&

RICH

ROBERT E.

BY

SHEBOYGAN, Wis.—Richard O.
Ballschmider has become associ¬

same

.

accumulation
plans were started. In October,
1958,
the
Association
reported,
22,735 accumulation plans were

when

"(Special to The Financial Chbonicle)"-

with

the

about

R. O. Ballschmider Now

ated

Financial Chronicle

The Commercial and

(2108)

quarterly

acquisition of
fund shares continued at

mutual

a steady
During October, 28,989 such
plans were opened by investors,

rate.

oroe-

\flC'

Price $35.50 per

E&H

American

ST0(%7uhJ'"W

est'ng
s
Stn

n

•

pr>m

arHy

GCted\

st°cks
&rOtyth

Of

Business Shares

.•

'

for

lr>Co

A

°s$ibl

O'Pal

trie.

Copies of the Prospectus may be obtained in any State in which th
circulatedfrom only such of the underwriters, including

announcement is

i

on

Po

Pfin

The

and

anced

Balanced Investment Fund

Company
between

selected

for

invests
bonds

in
and

the

Prospectuses available from
Investment

EATON & HOWARD,

Dealer

Incorporated




upon request

New York

—

Chicago

—

Atlanta

lawfully offer these securities in such State,

Kidder, Peabody & Co.
Eastman Dillon, Union

Lord, Abbictt & Co.

24 Federal St., Boston 10, Mass.

as may

portfolio bal¬
preferred stocks

stability, and common stocks
for growth possibilities.

Prospectus

or

undersigned,

(

a

selected

your

Share

—

Securities & Co.

Bache & Co.
Los Angeles

November 17,1959.

McDonald & Company
Paine, Webber, Jackson & Curtis
F. S. Moseley & Co.

Volume

190

JNumber 5900

...

The Commercial and Financial Chronicle
(2109)

THE MARKET
BY

WALLACE

The

come.

AND YOU

...

now anticipate between now and
10 chem¬ the end of the year. "~J
country.
Tax-Loss Selling Ahead?
Price-wise the issue has been

available

bulk

with

seesawed

of

the

clearcut

list

the

showing

intention

no
week

this

lion

than the cost basis

more

which

at

they

carried

are

on

the books.

and the fact that rails

slipped
repeatedly to the poorest
postings seen this year was
far from
helpful.
■

❖

„

The

#

rails

obvious

*

the

were

rather

disapppointment

.that the steel mills

are

now

hum¬

ming. They felt the brunt of
the strike almost immediately,
as
carloadings dropped off
and logically could have been
the group to

.action
ness

show the better

the post-strike busi¬

as

picked

up.

Rails Continue

Instead of this celebration,

they were a definite drag on
the list which is still disturb¬
ing

to

those

technical
market.

who

take

approach
The

the

aver¬

by contrast, has been
holding around a score of
points above the September
age,

-low.

V

1

❖

•

•

*

Selected

:

•

Tool Issue
The
in

-

were

pany has been diversifying to
smooth out the sharp ups and
of

the

business,

its

cyclical

tool

interests

reaching to textile machinery
and construction equipment.
The

issue

nual
the

sells

for

around

that is

market.

anticipated earnings

1960.

In

markets

the

sion

a

circuit

operation

multi-million

where

for

and

holds

interest

in

if

*

a

isn't

sphere.

if

The

,

sold

-

for

a

❖

has

a

It

up.

one

of

dividend

the

and in

this income section. Its return

of

around

5

even

A

com¬

a

few

produced only 8% of the

large library of films

future sale. More
as

far

as

cerned,

the

total of 536,800

reacquired
half

of

so

this

own

of its

principal customers, and

in Air Reduction. These have
a

market value some

$10 mil¬




&

its

chemical

year

$200

com¬

million

business.

to

Last

the chemical activity ac¬

counted for
more

ing essay competition.

and

Stock

Market

Out¬

New

at

recent

prices

has

Bosworth, Sullr

DENVER,

been

Bosworth,
Inc.,
660
members

Midwest

will

Colo.

Sullivan
of

tion, it is

one

not

purchasers

of price

an

offer to buy

any

New

Street,

York

and

40% of sales and

than half of the net in¬

installed

meet that afternoon.

is

now

Securities

affiliated

now

with

H.

M.

members

of

the

Midwest

Stock

Exchange. He was formerly with
Bacon, Whipple & Co. and Lee
Corporation.

Lowell, Murphy Adds
(Special to The Financial Chronicle)

Dank-

affiliated

Financial Chronicle)

Byilesby and Company, Incorpo¬
rated, 135 South La Salle Street,

Higginson

Exchanges.

with

Corp.,

621

Street.

DENVER,
Cockerill
staff

of

has

Colo.
been

—

Dale

added

to

C.
the

Lowell,

Murphy & Co.,
Denver Club Building.
He
previously with Allen Invest¬
ment Company.
Inc.,

was

Joins Inv. Bankers Inc.

ac¬

(Special to The Financial Chronicle)

item that should

of

Company,

DENVER, Colo.—Robert G.

a

Seventeenth

newer

R.

(Special to The Financial Chronicle)

Columbine

much in the
way

the

Stock

mount

offering

&

Seventeenth

respectable 414%. With Para¬

clearly

is

Leonard

-—

With Columbine

it
nich

pretty

be

CHICAGO, 111.—Gordon T. Duffy

Jones has become connected with

bought
on

will

Duffy With Byilesby

(Special to The Financial
Chronicle),

con¬

having been
it

officers

Thursday morning, Dec. 3, and
the incoming Board of Governors
on

With Slayton &

Thayer

(Special to The Financial Chronicle)
DENVER, Colo.—Russell R. Hop¬
kins
has
joined
the
staff
of ALTON, 111.—Herbert G. WickenInvestment
Bankers, Inc., First hauser is now with Slayton &
National Bank Building.
Thayer, Hotel Stratford Building.

circumstances do be construed as an offer to sell or as a
solicitation
of these securities. The offering is made only by the Prospectus.

no

NEW ISSUE

November 13, 1959

200,000 Shares

years

Almy. In all, Grace
some

.

(Special to The

far. In the first
year

open

on

Inc., will be guest speaker.' Mr.
Schraeder will discuss "The 1960

With

shares,

43,000 shares. The yield

Municipal Forum will

Sunday after¬
noon, Nov. 29, and there will be
Convention sessions each morn¬
ing, Monday through Thursday.

arrangements.

Paramount has been

busy retiring its
a

is

C.

made to the three winners of the
1959 Institute of Investment Bank¬

importantly

stock

Samuel

Schraeder, Execu¬

Herbert S. Bengtson of
Schmidt,
& Parke, is in
charge of

Acme Missiles & Construction

Newly Arrived Chemical

mitted

A

the Convention

more

pared favorably with some of
troubles in Latin American
the high bond yields prevail¬
countries made a break neces¬
ing currently. This is one of
the older and larger of the sary in one of the longer divi¬
dend
chains, W. R. Grace
transmission companies. Its
some
years ago branched out
outlook is bright because of
into
chemicals.
This
move
both enlarged pipeline facili¬
cushioned the sharp drop in
ties and sizable rate increases.
In addition it plans to step up profits from its Latin Ameri¬
can activities. Several chemi¬
its own drilling activities to
cal companies were acauired,
secure a greater
proportion of
its needs. Its own wells last including Davison and Dewey
gas needs. It also has a stock
interest in Alabama Gas, one

Spruce

Honorable

Roberts

Corporation

Unlike United Fruit where

year

The

Waugh, President, Export-Import
Bank of Washington.

Vice-President and Director
of Research of Distributors
Group,

payers,

more

1317

look."

steady

is

chell, Secretary of Labor.

made after 1948 available for

is under

steady

if

addition to the address by
William D1. Kerr, Partner,
Bacon,
Whipple & Co.,
Chicago,
and
President- of the Association, the

Chairmen of national IBA com¬
mittees will present their annual
reports. ; Cash -awards
will
be

Business

v

and

Club,

Harold X.

until 1973. In addition it still

if

*

Friday, Nov. 20, at the

Street.

to

appears

on

Engineers

700 films to Music

more are

issue

too,
will
Southern Natural Gas was round out half a century of
high-yielding item even in uninterrupted payments.
❖

be held

Du-

tive

year

lunch¬

meeting of the Investment
Association of Philadelphia will

*

last

Pa.—A

eon

to its movie business.

Paramount

20-

undoubtedly will make a
est
debenture offering. The better showing this year with
generally
perking
utility section continued to be business
one

.In

•

PHILADELPHIA,

be immune to all the tax loss

above-average
yields.

evi¬

some

now,

televi¬

Corp.
prevalent,
of America,
from which it
be one
should receive $50 million in¬
yet in the strato¬
come
payable in installments

times and

steady most

the

is

Phila. Inv. Assn.
To Hear Schraeder

computers, has
color TV tube

closed

a

some

if

Telephone's lat¬

Harbour, Fla.

There

dence that much tax loss sell¬

gainer
is
selling that market followers
of the time and the entire Anchor Hocking Glass which
turned in record figures de¬
money market was helped by
the ready acceptance accord¬ spite the recession last year,
This announcement
ed American

Convention

ever, a school

year

Mont Laboratories. All this in

❖

were

as

1956

this

production item

a

times the current an¬
addition
profit rate, and six times

forge higher at times,
Koehring Co. is another
particularly when,, as * in
Motorola, split hopes are sharp recovery item. It makes
construction
and
industrial
high. Steels had their buoyant
moments
although without machinery. For the August
making any serious attempt quarter its profit was 150%
to overwhelm the lists of new ahead of the same period last
year and for nine months the
highs.
profit gain came to 230%
over
"Compacts" Quiet Down
the 1958 showing. This
The small car shares were was achieved on a sales gain
well quieted down,
wavering of only 44% for the nine
around in what the market months
and slightly more
analysts like to call a trading than 50% in the third quar¬
The company
also has
range. The Big Three were ter.
restrained, with the decline in been busy diversifying, most¬
Ford probably
reflecting the ly by acquiring new firms in¬
imminence
of
another
two cluding
a couple in the oil
well supply business.
million share
offering.
Utilities

developed
owns

$

❖

its

grown into maker of devices
for electronic

now

able to

•

is,

market is
ing has been done already.
A mundane item is Para¬
But the expectation of more
Swasey Co. in the
mount Pictures which so far
following guest speakers will par¬
has been
machine tool group. For the
contributing to the ticipate in the program:
this year has held in a
f i r s t three-quarters . of the
range general caution around.
His Excellency B.
of around
K. Nehru,
eight points. Movie
year, on a sale jump of only
[The views expressed in this article Commissioner General for Eco¬
producers
haven't
been
mar¬
around 42%, profit was more
do not
necessarily at any time coin' nomic Affairs, India.
ket favorites to
Gabriel Hauge,
any great ex¬ cide with those of the "Chronicle."
than four times the earnings
Chairman, Fi¬
nance
tent for a
Committee, Manufacturers
loqg while, but They are presented as those of the.
for the same period last year
Trust Company, New York.
author only,]
Paramount is a bit more than
and even triple the final re¬
The Honorable James P. Mit¬
a movie
producer only. It has
sults for all of 1958. The com¬

that

electronics

under

though

Paramount's Spreading
Activities

counter

.

❖

even

earnings rebound item

the

There

dozen

a

Warner &

the eight

to

industrial

Rebounding Machine

downs

Drag

as

A

than

more

IBA Announces

of
contrary thought which
peak,
the holds that a flood of tax loss
WASHINGTON, D. C.—The 48th
chemical business has shown selling has been
anticipated Annual Convention of the Investa
ment
pronounced recovery gen¬ so generally that it
Bankers
Association
of
probably
erally, and better results for won't happen in the perverse America will be held. Nov. 29Dec. 4, at the Americana
Grace are
Hotel,
way things occur in the stock
virtually assured.
Bal

points
Stocks

company

ranks among the
top
ical producers of the

STREETE

17

Class A Common Stock
($.25 Par Value)

Price $6.00
per

Share

Copies of the Prospectus may be obtained from the undersigned only
undersigned is qualified to act as a dealer in

in states in which the

securities and in which

the Prospectus may legally be distributed.

Myron A. Lomasney & Co.
39

Broadway, New York 6, N. Y.
BOwling Green 9-8120

and Financial Chronicle

The Commercial
18

ard

NEWS ABOUT

D:r Flinn

BANKS AND BANKERS
New Branches • New

Offices, etc. • Revised

Capitalizations

Denton also announced

Mr.

York

Vice-President

to

and

1947

Division.

vestments

Douglas; E.,
Allis
was
named
ah
Assistant'*
Vice-President, and, Paul D, Bordwell, Edward K. Lant#, Karl E. W.
Mueller, Robert R. Risch and John
C. Sutherland were made Assistant Secretaries.
"
the

At

time

same

■

v■

tt

«

«

6, was

York, on Nov.

-New

State
Banking Department to increase
its capital stock from $3,147,210

approval by the New York

consisting of 314,721 shares of par
of

value

354,061

par

value.

-

*

*

election

of

/

fhe

each, to $3,540,610
shares of the same

$10

of

•

V

*

Wot-

Wilfred

of the Board
and Chief Executive Officer and
Michael
J.
Burke
as
President
trich

Chairman

as

,

announced

The

Lincoln's

The

by

-'.Si'

tt

stock of SI.400.000 and

the

Comptroller of

the

of

office

The

rency

He

Bank of Portland and under the
title of Canal Nationar Bank,
(Number of shares outstanding
200,000 shares, par value $10.)

ing National Bank of

Youngstown,

Ohio, with

stock of $2,-

common

and. title

Robert A. Po¬

where

•

jn

accordance

this

action

Centerville,

of

Bank

State.

In¬

diana, with common stock of $25,000 into the Second National Bank
of Richmond, Indiana, with com¬
stock

mon

of

$1,000,000 was ap¬

past 35 years

;

-

V

1949 increased from 189,000 to 220,000.
made The proceeds will increase the
Trustee in 1953, and Executive capital of the bank to $5,500,000,
Bank

the

with

Vice-President

in

since

He

Vice-President.

1955.

surplus

-

*
*
Mr. James A. Collishaw, President
of The Rockland National Bank
at Sufferu, New York, announced
the appointment of Mr. M. Ambrose McCabe, as Executive Vice
President.
A former Vice-Presin

*

■■■,

Mr. McCabe, had served as
President of the Ilaverstraw Nadent,

to

-

*

*

*

Frank R. Denton, Vice-Chairman

of

Mellon

Trust

Co.,

National

Bank

Pittsburgh,

Pa.,

and

from

stock

(Number of shares outstanding
60,000, par value $25.)
Si!

•

By

buy any of these securities.

the offering

Bank

Minnesota

circular.

of

v

the

*

■

'

'

The

.

r»

•

First

Owatonna,

value $100.)

Calif.

The Fort Dodge

Fort

sit

•

Angeles,.

sis

Iowa, increased its
capital stock from $200,-

Dodge,

common

to

$400,000

by a

stock divi¬

Department.

;

-

■

community

Ayers has served as
Secretary-Treasurer and member
Mr.

of the Executive

Committee of the

Rocky

Mountain

Group,: Invest¬

ment

Bankers

Association

Next month, he

America.
a

one-year

::

„

J. J. B.
^

..

Milliard

Director,

effective Nov. 12.

Admit 2 PartnerS
&

Son, '41$

West

All

INTERNATIONAL TUNA CORP.

proved by the Office of

of

the

'

The

and

effective Oct 30.

Trust Co.,

common

'

'

si:

sjt

of Commerce, Se¬

Wash.,-was increased

(Number

Ballard Mor¬

Partlow to

ton, Jr. and George L.

partnership.

Shuman, Agnew to

capital stock of the

National Bank

$10,000,000

Dec. 1 will admit T.

Admit W. Savage

"

sji

by a

$9,000,000 to

effective Nov. 5.
shares

of

100,000, par value

ISSUE

outstanding

$100.)

SAN

FRANCISCO, Calif. —Shu¬

man,

Agnew & Co., 155 Sansome

Street, members of the New York
and- Pacific

Coast

Stock

changes, on Dec. 1 will admit
liam T.

sold this announcement appears as a matter
■ -

v

•

of record only.

November 13,1959

,

200,000 Shares
10c Cumulative Common Stock
(Par Value 50c Per

REALSITE INC.

Share)

Offering Price $1.00 Per Share

Class A Stock
(par value 10£ per

Copies of the
undersigned

share)

offering circular may be obtained from the

in

any

state

in

which

the

undersigned

may

Price

legally offer these shares in compliance with the securities

^3 per share

laws of such state.

GATES, CARTER & CO., INC.
P.

O.

Box




Copies of the Prospectus may be obtained only in
the securities may be legally offered.

such States where

Hatten Bldg.

1001
Gu If port, Miss.

Robert L. Fetman & Co.
Principal Underwriter

Ex¬

Wil¬

Savage to partnership.

Of Pascagoula, Miss.

Class "A"

York

Exchanges, on

and title

Bank

Western

First

and Midwest Stock

the Comp¬

troller under the charter

of these shares having been

NET'

Jefferson

Street, members of the New

the First National
California, with
common stock of $50,000, and The
First Western Bank and Trust Co.,
San Francisco, California, was ap¬
Tustin,

of

Hill-

LOUISVILLE, Ky.—J. J. B.
iard

of

merger

Bark

to

.

California,, elected

Charles E. Ducommun, a

A

of

begins

term as Vice-Chairman

Group.

ISSUE

175,000 SHARES.

the
Previ¬

'■;- •''

financial

in

Active

•

First National Bank

Los rAngeles,

stock dividend from

National Bank of

repre¬

of

he - was with the Denver
Harris, Upham & Co., and
New York office of Hemphill,

of that

"

r:

•

if.

attle,
sit

registered

appointed
the
Security

First National Bank, Los

j.

stock from
$100,000 to
an¬ capital
$250,000, effective Nov. 2. (Num¬
ber of shares outstanding 2,500,

Company,

-

r

>manager

was

Vice-President ••of

its common

increased

solicitation

The offering is made only by

S-S

stock. dividend,

a

National

000
NEW

SjS

:

,

was

and

Noyes & Co.

&

$1,250,000 to $1,500,000 by a
dividend effective Nov. 5.

Sit

to

Bank

Michigan,

increased its common capital stock

par

This announcement is neither an offer to sell nor a

National

Trust Co. of Kalamazoo,

$5,500,000-, ^and ' undi-

vided profits to approximately
$1,750,000.
It is estimated that
total capital structure, including
reserves, will amount to $14,938,000.

American

The

was

In¬

vestment

office of

+1 .a

*

Heins

The Security

mofC

' ously,

■

R.

>

he

Mutual Fund

Bank & Trust
Francisco, Calif.
announced the appointment of Mr.
Stanley M. Hogshead,- as VicePresident
and
Manager
of the
bank's Sacramento, Calif, main
office.
Y
<
;'■%:%• ■ X X'

William

Ayers

%

..

sentative

■

iated

B.

where

First Western

r

staff

.

Mullen

Co.,

last year.

.4...:.*

the

-

than six years

Roscoe

Company, of San

Ccnterville

A consolidation of the

with

to

CTuttenden,

affairs,

The

Ayers

comes

with The J. K.

joined the California
as
Vice-President in 1943
he continued until his re¬

tirement

firm."^

Mr.

after

Russ

Bank

*
*
*
each.)
'
'V:'"";"
X'dfX
/ V' '
'■*
-V
A;' Shareholders of The First National Bank of Jersey City, N. J., The Lorain County Savings and
at a special meeting Nov. 17 ap- Trust Co., Elyria, Ohio, and the
proved a proposal by the Directors Peoples
Banking
Co.,* Oberiin,
to increase capital funds through Ohio, consolidated under charter
the sale of 31,000 additional shares and title. of the Lorain County
of the bank's $25 par value capital Savings & Trust Co., "effective
' •
stock. More than 80% of the stock Nov.' 7.
of the bank was voted in favor

invest¬

e

ment

Detroit.

of Vice-President.
Mr.

manag¬

ing partner of
t h

.

the

shares at $53 per share. These proved by the Office of the Comp¬
where
his
recent
position was rights will expire on Dec. 3, 1959. troller of the Currency effective
(Number of shares out¬
Vice-President in charge of < the
with the completion of this of- Nov. 4.
personal trust department.
fering, the number of shares of standing 140,000, par value $10.)
si;
'
sis..-sit
Michael J. Burke has been affil- the bank's capital stock will be
as a

desta,

Podesta

Cleveland,
Ohio, where he also held the post

Bank ,of

National

Mahoning

of

from

ment

later moved to the

Trust

announce¬

an

.

President and

Youngstown. (Number of shares
outstanding 260,500 par value $10

Trust

York, for the

New

524 17th' Street,
aceording to

Co.,

f

President. The

banking with the First

under '.Cleveland

31

Oct.

effective

charter

the

connected with on Nov. 17, 1959, rights to subCompany, scribe pro rata to the 31,000 new

been

has

":

:

began his long career

Russ

Mr.
in

Currency approved a merger

455,000,

presently Chair- by the shareholders, the bank will
of its Executive Committee. offer the shareholders of record

Manufacturers

&

Podesta

of

Manager

of Cruttenden,

office

Denver

-

since 1951 and is
man

appointed

been

the

following a brief illness.

V

••■

Trustees

of

Board

DENVER, Colo.—Roscoe B. Ayers
has

the York National Bank of Saco. of, the'1 First National 'Bank* of Co., Detroit^Mich., in 1922 where
Maine a. with common stock of, K'i n's rhli'n, Ohio,;With cdYftmon he served as Vice-President. He
$250,000 v/as approved by the of- stock of $125,000 with the Mahon¬ -joined the First National; Bank,
fice of Comptroller of the CurDetroit, Mich., in 1924 as a Vice-

Lincoln
Savings Bank, Brooklyn, N. Y. Mr.
Wottrich has been a member of of the proposal.

was

James P. Simmons,

•

effective Oct 3T under the
given charter of The Canal National
Co.,

Trust

and

Bank

Trade

The

Van

I

.

.

u
*
A merger , of the Canal National
Bank of Portland, Maine with
common

La wick.

Podesta

Na¬

Kansas

C.

L.

Baron

Bank will open early
The consolidation of the Ilill Top
fin 1960 with a $2,500,000 capital¬
Bank
of
Pittsburgh, Penn.
and
ization,;
v
Western
Pennsylvania ^National
Xif
;>•;
*
*
•%„... W'% ".X'.
Bank, Pittsburgh, Pa. has been ap¬ F. Howard Russ, > Jr., 73, retired
proved by the stockholders, ef¬ Vice-President of California Bank,
fective as of Nov. 16.
►
- /
-Los Angteles Calif., died on Nov. 9

McCabe will be in chai ge of business development, advertising and
Puhhc relations.

;

Trust Co.,

&

is

Mo.,

Guaranty

.his unew pc!?u

associated

been

Irving' Trust Company since
is in the Company In-

with

0

Assistant ber, 1939 to December, 1957, when
Vice-President, it merged with the Rockland Na-

has

Heard

Mr.

City,

of City

department

Bank

tional

Cruttenden,

assistant manager of the

new

foreign

the

U*'

%•'

a;

from

Heard

A.

The

Roscoe Ayers With

«

«

Department. Miss Williams'

announces

Edwin

a

Thursday., November 19, 1959

..

*

-

banking career began in 1943 with
:Mr. Henry B. Matthew was named
the Union Trust Co., three years
Assistant
Cashier
of
Guaranty
before
it consolidated
with the
Bank, Phoenix, Ariz.
The an¬
Mellon National Bank and Trust
nouncement
was. made
by: Mr.

Company of New tional Bank and Trust Company,
the promotion of Ilaverstraw, N. Y„ from Septem-

Trust

$25.)

■

appointment of Miss Mary C. Wil¬
liams to Assistant Secretary in the
Trust

Irving

value

Department Mr.
joined the Trust Depart¬
of the bank in 1951. ,s
•

Flinn

(Number of.
16,000," par

outstanding

shares

Secre¬

Assistant

tary in the Trust
ment

Consolidations •

as*

dend effective Nov. 5.

Rich¬

nounced the appointment of

'

.

(2110)

Godfrey, Hamilton, Magnus & Co., Inc.

Volume

190

Number

5500

.

.

.

The Commercial and Financial Chrojiicle

(2111)

Financing Picture in 1960
Companies

Netv York City
banker

advises

installment

should

minimize

probable
t*d

of

starts

and

penalties,

non-callabifrty, should that

of funds for 1960

be

the

choice.

summarized group

are

rate

of

repayment

debt

in

first

to

The

might capitalize

Senior subordinates

L

:

and
It

one.*;

is

interesting

to

recall

half

'

Jkirids; at 5 times the above / /
•2.' equals. A.._________l___$ 16.25

a

and

a

.,'Our

loiig

ago

"

government

3Vis

3.22,

yea

2.50

the

yield, and
Treasury

Edward

L.

Holstcn

followed the pattern of a restric¬
tive monetary policy to combat
what
they felt to be renewed
dangers of a vigorous inflation,
and they have attempted
by such
means
to
keep
our
boisterous
economy
within
limits.
The
have

managers

the

used

traditional

vehicles,
the
redis¬
(that is, the penalty
incurred
by
member

rate

charge
banks

for

offsetting

reserves),

and

the

deficits

purchase

in
and

sale

securities.

have marketed

expanding

shrinking the

or

supply of credit.
The money managers have car¬
ried on their program of restraint,

the same time, noting
requirements of the

urgent

Treasury for raising

some

$12 bil¬

to supply the
budget deficit and insuring an
adequate supply of credit for the
normal

the public

minimum

debt

was

funds,

of

needs

of

dy¬

a

savings

sold

I

can't imagine

say I

occupied

managers.

be

in

than

by

those

think

they

their

very

in

so

this

ment deficit in

a

when hous¬

year

varied

life

compa¬

nies set out to prepare themselves

few

participated in

trusts,

record year for the

industry in 1960.

and
was
er

with

10

Capitalization

of

finance

companies.

factors/

If

The

we

successful

are

..especially:;- all of these

are

major

finance

panics buy or absorb smaller

management

com-

things,

I

should

be

in

think

doing
that

given the

(San
co

Kurt H. Grunebaum

Francis¬

office), and

W i 1 1-i

a m

A.

Sholten (Chi¬
Vice-Presidents;
Herbert B. Jones, Assistant Vice...

cago

office),

heartiest- of thanks by all
its
shareholders.
President; Seymour Welch, Assist¬
,
the
Timing will continue to be, at ant Treasurer; William J. Doran,
dation, the new increment re- once, the most difficult and the Henry J. Kieper, and Violet M.
ceives no recognition, and an ac- most rewarding of the problems Gourlay, Assistant Secretaries, and
tual diminution of the combined to be solved/. I am sure that the Walter Oppenheim, a director.
lines. ' A
• ;V;
; {../
:/;•' - ;
' installment
finance
field
.will
(2) Pension funds, - trusts and come up in I960; with good soluNow With Fahnestock
universifies can be expected to tions to all of these questions, and
(Special to The Financial Chronicle)
provide funds in larger amounts score/as usual a very high mark
than 1959;
They can be expected for maximum efficiency.
CHICAGO, 111. —Hal B. Howard
to be the chief suppliers of funds
is now with Fahnestock &
•
Co., 135
•I!V
.
•
'An address by Mr. Holsten before the
for- Senior securities,
and, to a American Finance Conference, New York South La Salle Street. He was
lesser extent, for junior securities City, Nov. 6, 1959.
formerly with Mitchell, Hutchins
ones,

what

year

ahead.

that

can

them

can

we

see

for

be

stated.

Let

com¬

paper,

pattern

is

occasionally complicated by other

layers,

I

substantially

think
all

this

major

financing.
limits of typical pat¬

tern will still allow the
very

potential

of

a




.

..

centage

of

funds
for

insurance
,,

,

will

our

probably

purposes.

provide

.

..

„

,

,

.

.

.

McDonnell Adds

(Special to The Financial Chronicle)

DENVER,
cox

....

available

is

Colo.—Foijest
W. Wilassociated with Amos

now

^

Life companies

substantial

Co.

&

Now With Amos Sudler

company

,

be

,,

.

„

funds

.<

Allen Investment Co.

South La

any

is made

NEW

an

offer to sell

nor a

been

added

&

to

the

solicitation

only by the Prospectus.

November 5,1959

SHARES

COMMON STOCK

1958-59.
cur¬

somewhat, and, if the drop
substantial, this could make

is

(3)

($.50 Par Value)

to

Company is offering to the holders of its Common Stock the right

subscribe, at $4.00

the rate of

one

per

share, for the above

Reserve

should

justify the

policy

business

present

of

Common Stock at

share for each two shares held of record Novemher 5,1959.

Subscription warrants will expire at 5:00 PM Eastern Standikd Time,
on

\

November 20, 1959.

Copies of the Prospectus

Federal

new

any
may

may

be obtained within

State only from the undersigned and others

(4)

The

probably

fas¬

finance

bond

continue

as

lawfully offer these securities in such State.

fail

sanguine

calendar

light

will

in

the
corporate field, and approximate¬

ly

as

heavy

With

as

1959 in the tax

ex¬

these

basic assumptions,
probable that money will
be no more costly in 1960 than in
1959, with some possibility of low¬
er

seems

LYMOUT

rates from time to time during

the

Finance company bor¬
rowers face less competition from1
year.

building starts,
and
from
the
Treasury, especially in the first
half
will

of

1960

when

the

Treasury

probably be paying off debt
large first-half tax col¬

from the

lections.

I

think

the

borrowers

BOND

1112 ainsley

Member:

&

SHARE

Building

CORPORATION

•

staff

of

Mc¬

Co., Incorporated, 208

Salle Street.

of these securities. The offering

ISSUE

Staff

CHICAGO, 111.—John G. Gay has
Donnell

of offers to buy

to

(Special to The Financial Chronicle)

Sudler & Co., 818 Seventeenth
street.
He
was
formerly
with

This advertisement, is neither

The

(2) Housing starts will be

it

this

n

list

me

(1) The budget deficit for 195960
promises to be considerably

empt field.

While

..

the

below:

senior subordinates and long- and
short-term senior debt, including

finance

,

My crystal ball is, as
usual, very cloudy, but I think
that there are a few probabilities

stock, retained earnings and
surplus, preferred stocks, capital
debentures or junior
subordinates,

borrowings,

parent has already secured
maximum of bank accommo-

expectations.

mon

cinating

.

as

the

Cor-

liam P. Meyer

What Is Ahead?
Now

com¬

panies consists of funds from

Indenture

finance

visible

to

pre-

years
sought by most
and granted reluctantly
borrowers.

some

to

company

available

with

vail from time to time between
equities and fixed income securities.

still restricts

M.

ley, Timothy
P.
Donovan,
Philip F. McManus, Wil¬

yields increased sharply, there
a growing insistence on
long¬
periods
of
non - callability,

modification

Financing; Pattern

intermediate

surplus

interest must vary widely
the yield differentials that

A

bank

on

ward

of the senior

some

expected

covers

based

accommodaiions

limiting

States.

President; Ed¬

important

enormous, and the amount of their

source

commercial

of
H.

Grunebaum,

increasingly

As the bond market deteriorated

restriction will probably
continue,
with
an
outside
possibility
of

etc.

ceiling
and

be

United

Kurt

of funds. Their potential is

source

issues.

available additional funds for the

notes,

definite

to

the

an

Board

Directors;

preferred

also

bond market.

only for the current require¬
of
1959, but to lay the
groundwork for the expected ex¬
pansion
in
what
is
generally

bank

in

of

open

who

ments

•

continue

and

(6) Open end investment trusts
are

pur¬

not

Typical

summary

insurance

purchasers, the

investment

smaller than fiscal

finance

have

found

tailed

installment

automobile

nior

the, pension trust
much broader ac¬

the

a

brief

very

baum becomes

potential

by

a

should

and

ing starts increased violently and
unexpectedly to 1,350,000 starts,

as

have

money

many
absolutes.
background
of
a
restrictive policy of the Fed, ag¬
gravated by a substantial govern¬

Against

a

list of

our

end

deserve

endorsement of
valiant efforts toward

reconciling

$225 million

ceptance by life companies, uni¬
versities, and, a relative newcomer

the

sympathetic

our

the

be

make

Subordinates and ju¬

nior subordinates

by

one

Chairman of

should

buyers of a
limited amount of senior and
ju-

approximately
we

est prospects for preferred stocks.
(5) Fire and casualty companies

primarily to pension
funds, universities,

banks

companies.

orderly. I must

to

some

funds

trust

lenders,

seat

fi¬

capital

market.

Sources

economy, and keeping the
market
from
becoming too dis¬
hotter

present

funds

somewhat,
both
in
availability
and selectivity by type.
Senior

money

namic

a

of

problems that

,

fect of

new

1960

,.

faised

days,
using both private placement and

among

of

of

of senior debt in the
past 60

and

lion

.

in

(junior subordinate
money) in sizable chunks. GMAC
of the large companies.
raised $175 million 5ygs, Commer¬
(3) Life insurance companies.
cial Credit and Associates
aggre¬ If
mortgage starts are reduced
gated $75 million in this third
from the 1959 figure, a larger per¬
layer, CIT, GMAC and Associates

groups,

at

/'/•/.'

The.; giant

companies

chasers

while,

ex¬

concentration

a

of Treasury bills in the open
market, with the immediate ef¬

the

thus

debenture

able to raise 1-year money at
iy4.
The money managers have

count

is

16 times. r

some

income
nance

a

was

money

capital

fund, raising in the field of fixed

25gs

r

of

'1959 showed

5-;

reached

$1

panded

.•

sold to

yield

$3.25

Superior indebtedness of all

that

less than
year

Official Changes

-

If the

re¬
•*

verse

1.00

;

N. Y. Hanseatic

than

already encountered in 1959.

.50 largest

{

Capital notes (junior subor-,
/ dinates);.75

suddenness to
a" flattened
a

$1.00

securities,
with ' the
emphasis
probably centering on the better-

securities,
To
stocks, as well,

capital

Common stock and surplus.
Preferred stock

times, quite steeply, and shift¬
ing with great

to

1960
same

will

follows:

as

,

sources

(1) Bank lines. Principal

company in never-never land who

at

curve,

for

the

banks

changes so swift and so stagger¬
ing, with the yield curve pitched,

„

„

.

probable

groups, my guess is that it will
look approximately as follows:

i960.

of

.

Sources of Funds
The

by group

half

penalties.
I
that they prefer

*

problems encountered in 1959 with the excep¬
changes resulting from anticipated reduced mortgage

Treasury

in all categories of fixed interest

rate

suggest

c

accept higher interest

or

This last year has been filled with

then

money

time.

same

tion of possible
•

rate

sources

reflect the

companies

some possibility
Borrowers, in Mr. Holsten's judg¬
shortening maturities where possible to

consider

interest

longer periods

finance

shortening mapossible to mini-

interest

average
yields
available
paying higher interest, rather than from time to time in these cateaccept longer periods of non-call- gories.
The investment firm of New York
ability, and that any extremely
(4) Savings banks will prob- Hanseatic Corporation, 120 Broad¬
long maturities should be avoid- ably continue their
interest
in way, New York, has announced the
ed, if possible, until a normal in- senior securities in about the same
following executive changes: Erich
terest curve is restored.
degree as 1959, and are also modO.
G r u n e-

costly in 1960 than in 1959, with

of lower rates from time to

ment,

where

mize

By Edward L. Moisten,* Partner, Salomon Bros. & Hutzler,

Investment

consider

would

For Finance

may not be more

should

turities

19

miami, Florida

Philadelphia, Baltimore Stock Exchange
■

Vf

>

20

The Commercial and Financial Chronicle

(2112)

since

Investing in
Steel Stocks
Continued from page 4
the

low

point in

ing

the

summer

Instead,

came.

tinued

to

operations dur¬
of 1954, never
stocks con¬
major in¬

these

rise

without

and
tripled in value.
During that period,
they
out¬
paced the accepted common stock
averages by a wide margin and
were heavily accumulated by the
mutual funds, pension trusts, in¬
surance companies, and to a lesser
extent, I believe, by the trust
departments of the major banks.
terruption

most

three

for

years

them

of

I

Chance

base

at

Bargain

last

this

is

probable,

and

hour

per

benefits

modestly. There doesn't appear to
be

anything

warrant
the
but

in

undue

steel's future
alarm

or

to

prompt

liquidation of steel stocks,
sober appraisal of the strike
the reasons for it is in order.

a

and

is familiar with the
postwar pattern of wage increases,
followed by price advances in the
steel industry.
This culminated
Everyone

in

1956

after
cost

Last

It

1954.

likely, that the annual rate
of profits achieved in the June
quarter this
year
will not be
duplicated; but new records will
probably be set in both steel pro¬
duction and
company
earnings,
and the P/E ratios accorded steel
stocks
should
continue
to
rise

even

a

the

in

a

three-year contract

five-week
steel

strike,

industry

78

which
cents

in

over

wages
life

the

and

fringe

of the con¬

90%

the

in

first

with

compared

half

in

of

1959|
first

the

Steel making

tract, an overall advance of 28%.
the
same
period, finished
prices, as measured by the
Composite Index of the American

little

Metal

Steel

penditures
which
the
industry
made
immediately
before
and

proposed a
to cost the
steel
producers about the same
each
year
as
the expiring con¬
tract. They presumed to believe
that the steel industry could ab¬

Over

steel

Market, went up only 20%.
The industry met this challenge
handily. The heavy capital ex¬

during

of

1956.

capacity, of course, had expanded.
Why couldn't this very pleasant
party have been continued?
leaders

labor

were

very

with it and
extension

happy

three-year

period
paid
off in
plant efficiency.
of sorb such increases without rais¬
steel shipped, the eight ing steel prices and that such a

the

,

of greater

terms

months

99%.

six

In terms of cash profit per ton

finished

major
show

the

companies
an

first

average

six

able
gain of 18%
were

months

of

1959,

to
in

1956

little
the

period. Shipments

were very

higher—up only 5!72%; and

operating

rate

was

lower—

Thursday, November 10, 1959

much

as

anyone

and

now

they

are

its effects as applied to
steel prices. Whatever the reason
—and rising wage costs are cer¬
feeling

tainly the major cause—iron and
steel prices as measured by the
government's wholesale price in¬
dices have gone up far more since
1950

than

commodity prices gen¬

erally. The index is based on the
average 1947-49 level; and if an
earlier base is used, the results
are

not so disturbing; but the fact

remains that high steel prices are

settlement therefore would not be

costing the industry markets. This
is
most
notable
in
the import

inflationary.

field,

<

as

compared with the corresponding

...

.

Why

Steel

This year

chose

to

principle,

Fears

Inflation

steel industry leaders

change

they

the

fear

even

but competing metals and
plastics are taking tonnage

away

from steel. The amounts are

small in relation to the magnitude

record.

In

of

production, but they

are

inflation

as

growing and would certainly

ac-

steel

Prices

statement

only

observation,
as
holdings are not published,
know that many large insti¬
personal

upon

trust

but I

tutional

trust

mittees

wanted

officers

opportunity to

com¬
more

how the steels
adversity before

see

behave in

would

and
one

committing themselves. They had
chance

this

when

rapidly

stock

the

at

steels

the

more

averages.

of

end

1957

much

declined

than the common
In retrospect, the

period immediately thereafter of¬
fered the last chance to buy the
steels at bargain prices. By the
of

end

some of them had
price and the rise
through the first seven

1958,
in

doubled

continued

months of 1959. A few issues have

reached

began

highs since the strike

new

and

Standard

the

in

steels

11

Poor's

&

425 stocks reached

the
of

average

high at 160%
of the overall Index on Sept. 23.
For

comparative

steels
in

not

Apparently,

confidence

in

easily shaken;

that

most

concerned

extension
The

i

of the Index

1953.

pose

I
today

sup¬

the

are
future

with

confidence.

this

of

steels

the

but

investors

1958

the

purposes,

at 91.6%

were

September,

investor
is

a

performance

the

of

leading steel companies was cer¬
tainly outstanding, buUin a negajtive

They proved that they

way.

could

their dividends when

cover

operating at very low levels. The
proverbial break-even point for
many companies turned out to be
much lower than many students
of
the
industry
had surmised.
Prices held firmly and were even
advanced slightly to compensate
for
contractual
wage
increases
granted at mid-year. The linger¬
ing fear of pauperism, except of
a
comfortably genteel character,
probably

exercised

was

per¬

manently.
But

stocks

anticipation

bought

are

of

in

the

princely
periods. In this instance, investors
didn't have long to wait, and the
prince's
palace
proved
to
be
luxurious

mistic

beyond

quarter

of

the

best

the

expectations.
1959

most
The

by

was

industry

has

opti¬

second

far

the

ever

ex¬

perienced. Unfortunately, it isn't
likely to be repeated soon again
and

substantial

a

part
of
the
accumulated
during

earnings
those

three

been

months

sacrificed

has

to

already

the

great

American

luxury of "Free Collec¬
tive Bargaining." Yet that fabulous
quarter
gaye steel investors a
foretaste of the future, which was
highly palatable after the meager
fare of

1958. And

what may

now

expect?

we

Does

Not

Clear

the

Issues
suppose

we

must

return

to

that

unpleasant subject. As I said
before, the reopening of the mills
by means of a Taft-Hartley in¬
junction has not settled any of
the

issues

must

get

be

involved.

resolved

Those

before

issues

we

can

clear picture of what lies
in store for the steel
industry and
-or steel stocks. One
thing appears
o

of

a

be

certain, however. The

growth

next

much

five

after the

of

earnings

years

slower

is

than

going
it




rate

the

over

has

to

be

been

was

successfully fired in January—one

year

Navy announced its plan for this fleet ballistic missile.

Lockheed is
team

Injunction

I

First Polaris test missile

prime contractor and Missile System Manager. Polaris

includes Aerojet-General,

General Electric, Westinghouse.

—a

7

(2113)

*

v

»'

celerate if steel prices continue to
rise. Recent introduction- of a new

sheet for the
building industry, which is deI signed to compete with galyanized
type

steel
and

aluminum

of

is

data for

by- the
crease

'

cially
St.

of

wage

leaders.

during the last two

since

total still
normal

years

widely publicized,' espethe

Lawrence

opening

Seaway.

of - the

While the

not amount to the

does

annual

shipments

of

a

medium-sized steel company, it is
of

grave

firm this year against

could

rapid in-

concern

to

many

small

demands

the

of

since

economy

when

and

had

little

union

fused

battle

lines

drawn.

were

Even

though many large steel
ing companies ran out

consum¬

and

down,

have

think

•with

had

their

sympathies

steel

realize

close

to

steel

of

are

management.

only too well what

most

call

a

halt to

that

workers

out

sion

now seems al¬
six" to nine

-■

In the

to

-

steel

meantime, what happens
steels?

the

held

up

this

historical

The

remarkably

stocks

well

economic

into

have

during
battle,

largely,'I believe, because of the
excellent prospects for earnings
in 1960. The possibility of another

in

capacity operations expected
the first quarter next year will

not be

possible if union bosses

and ^

integration

Calculated
and

which

feduce

to

their

are

costs

expand their markets. This
trend will continue; It will be
-

.

will

some-' Near

this endless spiral of higher wages

had to

the

-lead

certain

months

I- work stoppage after the present
still injunction expires in January has
They cast a cloud on those prospects.

products, which

finally

to

again. However, it

of very high production
required after the strike
ing laws, it, is probable that the is settled before consumer inven¬
Congress will be called upon to. tories can be built up to normal
devise new legislation early in the levels; so there are bound to be
next session.
some large earnings ahead of the

U.S.W.

choice,
leadership re¬
categorically
to
consider
changes in the working rules to
eliminate,
costly
featherbedding
practices, which had been allowed
to develop in the industry,
the
They

one

be made far

the

If. it cannot be done under exist¬

the annual

producers of wire and other steel
can

able

,

built" ^ntd

<>•

isr the major* reason that World War II largely throtighlhe
large steel companies had to stand; monopolistic power of Big Labor.

trend

the

of mncjh- and higher prices, which, has been

This

the

strike, .but

has been
:

more

With respect to imports,
1959 have been distorted

because

lower wage rates.

-examples

indicative

many

be cited.

a

.

cheaper abroad

21

are

be

industry
the

next

economists
in

late

before
this

and I'm sure that not all of the
benefits will be paid out in wages.

There

we

recession.

expect

1960

head
Many
to start

partially defensive to offset
steadily rising employment costs,

early 1961. I am
not prepared to say whether they
are right or wrong, but I believe
the steel industry will be ready
to roll with the cycles.
or

may

next

over

be enough left
for modest divi-

even

year

dend

,

increases. However, I think
industry is going to have to

the
'

retain

than half of its

more

profits for

some

ture

unless
present
depreciation policies in
eral tax laws

net

in the fu¬
unrealistic

years

Fed^

our

changed.

are

had

The best investment results will
be obtained from the stocks of the

nounced

tively willing to spend large sums
of money to broaden their share

Almost before the last recession
run
its course, a number of
large companies,
including the
largest here in Detroit, had an¬

plans for future

companies which

expan-

demonstra¬

are

of the market. This does not

nec¬

essarily Call1 for big additions to
steel making capacity. I doubt if
there will be a large net addition

'

the

-

to

*

facilities

but

;

:

nation's
over

would

I

steel

productive

the next five years,

expect

the

more

aggressive companies to broaden
7 their product lines and extend
their geographical penetration of
the market to conform with the
.*■ doimtry-s
changing
population
patterns; National ' Steel, through
-

T

.

its

subsidiary in Detroit, is doing
just that; and.. its stock is one
which I would favor for longer
^ term - appreciation. I should also
include Armco, Jones & LaughJin; and Republic, all of whom
have announced plans for expand*

'

j ing

their operations

and market¬

ing areas over the next two or
three years. I am sure many like
'

to receive

estimates; and much as
I will pre¬

'

I

hate to make them,

dict that National will

$10

.

;

,

about

earn

share next year if production is uninterrupted and the in¬
dustry is able to pour 125-million
tons of steel. Under similar con¬
a

ditions,

Armco ought to report
share, Jones & Laughlin,
to $10.00,
and Republic,
$8.50 or more. In view of an¬
nounced expansion and improve¬
ment plans, these figures are well
below the potentials of two or
three
years
hence. Among the
smaller companies, Granite City
and McLouth, which could earn
$8.50 and $10 per share, respec¬
tively, next year, are candidates
for further expansion in earning
$7.00
$9.50

a

power.

commitments

New

is ,7

<'/">»'*>, <",'4

steel

in

today
literally, as I'm afraid the stock
market has not yet reflected the
full economic impact of the steel
strike, should be based upon improvement in earnings potential
rather than
on
the hope of a
further rise in P/E ratios.
Steel
today,

" "•

-

and

I

don't

mean

.

.

V'Wt'f'

'V

stocks have made

W'M'M-.

a

lot of progress

in this direction in the last year
; or
two, and I doubt if too much
: more
can be expected in view of
] the "fever present cyclical threat

r

which

srs:>

dominate economic
the
next
year.
However, most of the stocks i
mentioned before are prieed i t
may

thinking

.

.

.

;

less than 10 times potential 19t()
earnings and therefore would net

*; appear
'To

this

I H
I H
V V V

accelerated program accomplished methods of
launching the Polaris from submerged submarines

and surface ships. More
cians work

on

than 7,000 scientists, engineers, and techni¬

the Polaris at Lockheed's Missiles & Space Division.

J U

1% 11
I vUU

tion

The Polaris is scheduled for active
—two years

duty in late 1960

ahead of original schedule. Miniaturiza¬

techniques developed by Lockheed make the Polaris so com¬

pact that each

of the Navy's nuclear subs will carry 16 missiles.

be

to

very

vulnerabl

e

Summary

-

steel

■

over

summarize, I am sure tii-.industry is going to suryi
without serious in, -

strike

pairment of its recently won in¬
vestment status. I think it wui
continue
to
retain
its
cyclic I
.

characteristics, but that earnings,
will
be
less
seriously affects I
than in the past. That means mo o
stable income;
With growth i.\
volume limited, further increat- n
in profits will be won largely . s
a

result of

aggressive planning .w ;

the future through more

facilities

and

improved

efficie; ;
prodn.

mix. It won't be as easy to mar
JET

TRANSPORTS

•

JET FIGHTERS

•

JET TRAINERS

BALLISTIC MISSILE RESEARCH & DEVELOPMENT

•

•

COMMERCIAL & MILITARY PROP-JET TRANSPORTS

WEAPON SYSTEM MANAGEMENT

•

♦

ROCKETRY

ANTI-SUBMARINE PATROL AIRCRAFT

NUCLEAR-POWERED FLIGHT'ADVANCED ELECTRONICS'AIRBORNE EARLY-WARNING AIRCRAFT'AIRPORT MANAGEMENT
NUCLEAR REACTOR DESIGN & DEVELOPMENT




•

GROUND SUPPORT EQUIPMENT

•

WORLD-WIDE AIRCRAFT MAINTENANCE

;

in the steels as it has be^n
the past five years, but sut stantial appreciation still will • • ;
money
over

possible in the right issues.
•An

address

Investment

by Mr. Gerken before
- »
on Steel
at the 2*t t
Trust
Conference
cpo
•

Forum

Mid-Continent

sored by the Trust Division of the
can
Bankers Association, Detroit,
gran,

Nov. 5, 1959.

Ame-i
Mit

<

.»

22

The Commercial and Financial
Chronicle

(2114)

Stopping the
Debasement

page Radcliffe Report on finan¬
cial policy, a document of deep
knowledge. And, most of the non¬

Because the dangers we are

resident

asked:

managers

with

want

to have con¬

dollar

in

Of Dollar Now
Continued from page

10

strengthening of sterling, mark,
guilders, francs and lire—curren¬
cies

which

rates.

two

ago
without

years

function

to

and

controls

The

only

unable

were

exchange

multiple

"hard."

they are
for it is rather

Today

reason

simple.

All the above-mentioned units are

by absolute masters or
professors
of
currency

managed
former

theory.
have

the U. S., do not

We, in

of higher
abundant
courses
of
currency
theory
or
currency analysis and bringing up
currency
experts. We have no
arbitrageurs of currency and gold
that can match the wit and speed
of their European colleagues. We
just
get
along with politicians
filling important posts of mone¬
tary administration and this fact
is majorly discussed abroad.
Why we do this is a question I
institution
teaching

any

learning

cannot

We

eration

S.?

We

on

policy

simply

are

in

very

much afraid that you Americans
simply do not know how to man¬
age your Dollar. We are afraid of
what you can do.
...

You

believe

may

that

I

was

rather

unhappy
to
hear
such
opinions. I knew that they were
unfortunately — precisely cor¬
rect.
But most of the leading fi¬
nancial journalists from
Europe

—

and

Asia,

also

present

at

that

meeting, shared the same opinion
policy.

of U. S. monetary
Do

you

know

that

what

you,

or

bankers, your Congressmen
your business associates think

of

the

your

Dollar

is absolutely

portant—that all
or

your

unim¬

artificially

propaganda-wise created opin¬

ions
you

have only

in

a

one

goal: to keep

state of monetary docili¬

already

about

of

slaughter house,
panics?
facing
second
class

cause

46

cents, for the
time being, are centered abroad.
But they increase every day. Let
have

us

look at

a

them.

gold

stock

be

can

Yet

that,

the whole

—25%

unfortunately,

the

outstanding

basic

as

Therefore
short

we

not

are

about $7

of

the

of

the

can

withdraw them at

notice

their

in

Furthermore,
$6

billion

we

of

a

moment's

gold

equivalent.
know that about

foreign

private

investments

short-term

which

—

any

and

one

can

of

the

be

transferred to

foreign

banks, which in turn

can

central

was

the

$19.4

billion

basic

the

satisfactory

a

problem.
more

We

Positive

.

tempt

of

Positive
to

on

a

in

for

designing

models.

the

But

of

debt

be

can

months to

ered>

a new

Once

At the

same

judgment

I

more

these facts

must

d;

O

~

.?

our

the

sarily

o

o

—

time

z

c

(U

£

o

c

c

00

4)

—

Q>

x

«

0

C

a -

>

E

<D

3

g

0)

*-

0

W

a,

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4>
:

>•

C

e

c

in

Q>

o

a)

u

-r

G)

m

i ®

</>

^

"O

-

stability is just that—no real
taken.

are

Allow

to

me

ments:

~

f

;

>

compare two docu¬

c

would

in
this

early

nounced

of

one

his
'

that

the

head

"Vice-President

pages, was published
of

one

gardener

few weeks

a

those

jobs in

performed

an

Accustomed

such

of

our

administration, I would
brought

this

up

learn

result

with

Monetary

of

to

And

told:

how

more

vO

a

"G

4>

.£

i

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<y

c

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(A

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lO

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s

=

<u

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in

4>

currency

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a>

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t>

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tz

°.

CO

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52:^

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3

in

c

2 2

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s

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vo
on

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c

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c

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cn
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3

in

0)

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c
o

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r; ►-

C

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o
—

£
v

«x:

</>

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c

•

m

4)

4—'

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a;

v.

JC

0>

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o

TJ

•

o

failure

0

X'

OC

oj

2 O

CTJ

a

tu

S. 'o>

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c
in

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00

3

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•

«

w

vi

,

i

ai

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0)
JZ

o

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§

c

u

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CO
«

o

5
in

w
3

•:

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0s

</>

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o
w

> -X

"

v.

-.

O

,-4>

"TJ

H-

-a
v.

-

?

-

o

«.

cz

■

-C

a>

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«■

•

2

*

ea
•

CO

*

-o
■

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v

£

O

(U

C ; "ft
*
C

C- ~-

*

-

6)

«>

have

O. * B

m

o
CN

o

s
<

vO

oN
,

.

a

o;

o

<u

o

o"

c>

9.

this

<o

—

annual

F—

•

t:

■

o

of

the

o v>

^

Conference

in

There

also

currency
me

theory.

without

than

once

any

I

was

can

a
country
like
the U. S. publish the
inexpertly
written Nixon Report of about 18
pages of illusionary treatment of

Dollar

weeks

O

O
K

4>

were many
foreign journalists, in¬
telligent guests and above all, the

masters

O

"5

-O

*

of

\

°

n
°

~

3

«

c

C'OJ)

0

week

assembled.

They talked

irt

J2

-x

«/>■

7J

O

•—

_

CT>

.

"5

Washington, where delegates from

fear.

°

s

it.

During the first
month,
I
attended

nations

Q.

to

theory, if I had not experienced a
rather disagreeable
adventure
connected

•=

currency
not

understand

or

1

E

T3

1
■£:

'

-a

appendectomy.
brilliance

c

'

Anti-Inflation

an

Nixon
Report,
a multigraphed collection of less than 20

a

0

"0

called

was

CO

ah-

year,

Committee, whose first task would
be to publish a study on this his¬
tory-making problem.
The so-

It

O
a
■—

-

President,

speeches

3

—

o

a>

4)

So.'
a

*
>

'

<y.

ac¬

,s;

'

t: £

t:

cn
"a

co

5K

-X

O*

V

c

0

and all talk of return to monetary

a:
,

oi

OX
»*-

O

a

>- "tr

_

C

<D

-X
—

4)

-n

e

u

^ 3

V)

c

•—

°1U
°

o.2
■*.

cates

3

J?

o

C

"

deflation, as all Administra¬
Legislators want to keep
their jobs. Deflation is the feared
unknown, the terra incognita —

o

d)

>w

a

0)

°

Q

v

_

and

3
u

o

c

advo¬

4>

£
a

and

a.

C

«.

CO

52

^

O

—

fT"

u

■g.S

O

K.

O

a.

UI

C

a
V.

~D

a>

2
o

v

0)

O

O

in

°-

D

up

ment of the Dollar. No one

>.

■-

C

t;

of

^

u

-u

insurance companies. Nobody
really wants to stop the debase¬

and

0

c
3

-a

•31

in ~G

>

~0
a

.=

2

the

gold

CO

O)

t.iat all

say

to the top
management of banks

real

lose

in

-q

O

involved office-holder.

Administration

68

will

-c

_C

of cynical
approach to the Dollar exists, up
to
the
highest echelon
of
the

World

We

a>

-X

a»

<D

that the
of
their

horrible atmosphere

to

and serious crisis for

arise.

in

U1

discussions wit.i high officials
are subject to supreme dis¬

which

and
low-

C

Z

o

not popular and in

are

dain by the

ago.

in
be

o

O

already shrinking dollar prestige.

The

rate

§°^d stock will have to neces-

at-

further depresses the

abroad

tions

give

discount

00

c

for

postponed

come.

unfavorable

tors

Congress

the

<u

management

they cannot understand

levels

lobby in this direc¬

-C

to

-=

A

not

'

Should

a

Action

run

of
to

o

op¬

We would not dare to

detail

they

at

stop any

foreign

a

accept political nominees who
have probably never even read
the classics of monetary theory.
And our members of Congress can
simply decide that a highly criti¬

any

tion.

of

should

action

we

acts

look

we

loan

will

and

rep¬

analysis

must

afraid

am

banks, for the first time in a long
period, are going to be intelligent

our

angles.

Calls for

total

hands

figures of
still do not

currency reserves

I

building lobby, the instal¬
lobby, the automobile,
electrical appliance and mortgage
lobbies
all
will
spend a lot of
money to get what they want—
namely lower interest rates. The

bold.

these

resent'

So, in case of panic, about $18
of

rather

But

neutralized

The

ment

with

reporters

their

long time, at

care

they wrote the story. Only
the Wall Street Journal (Sept. 10)

change them into gold here.

billion

their
on

a

have

with
a
high
price
the lobbies are going

Now,
money,

Some of

dealt

5%. and stay

yell.

before

few

legally

have

newspapers

for

we

it

to

will not do it.

touched.

people who

question, but
put velvet gloves

Wall

Street, bank accounts, drafts, etc.
—exist

few

are

level

until

Administration.

that

theooretically

to talk about these facts.

is

automobile

policy

be

raised

4%

believe

I

ago.

dis¬

to

inflationary tendencies of the

any

con¬

be

the

increased

was

weeks

that

at

least

billion of gold.

billion in the form of dollar assets

There

few

a

bank¬

reserves

should

or

Against this gold stock, we have
face a mortgage of about $12

—

not

when

taken

was

rate

should

note-circulation—have to be

to

foreign governments

is

story.

of

cannot

We have a gold stock, as already
mentioned, of about $19.4 billion.

dollar
count

According to our monetary leg¬
islation, about $8 billion of gold

sidered

Claims Against Our Gold Stock

as

*

administrate budget matters, cen¬
tral bank functions and the dollar,

cal

considered

mortgaged.

Thursday, November 19, 1959

.

for

call

to

surgical

a

appendectomy

an

dentist

a

1961

dare

not

when

like

necessary.

hire

statements

currency

*

our

a

do not

.

answer.

would

gardener

a

U.

us

your

conservative

the

that you

so

currency

you

fidence

ty, like sheep in

.

problem, when, a few
earlier, the British Ad¬

ministration.-, published "the




.

375

w

^

0

■o
c

O

o

O

Volume

190

Number

5900

.

.

The Commercial and Financial

.

again and by the hundreds of millions

month.

a

•'

"

k tiful

and

Chronicle

and

cheap credit conditions,

dergo

a

new

*

cents and

and heavy series of
The danger-is

is

that they could snowball and that
situation could lead to very dis¬

If

of

mess

want

we

have,

we

terest

rates

And

our

to

must
and

tions

a

save

what

maintain

If

we

eco¬

nomic
austerity, slowdown and
unemployment. High interest rates
also

will

continue

buyers

finance
If
and

never

do

we

if

we

interest

that

patriotism

in

to

low

order

to

create

rates

so-called

it would be

as

wise

gold

reach

billion

a

a

possibility.

a

If

have

proceed

to

gold embargo,

a

would

we

to

If

at the

alone in this

tary earthquake would shake the

we

ures

of

years

longer, at the cost of debas¬

our

world.

fault.

And

it

would

We would be cursed

by all nations,

as

to

units

align their

they would have
to

the

could

last

But

alone.

not

are

we

least

have

some

whom

the

required giving
compensation to
monetary man¬

agement simply expropriated.
solution is due.

A

will

It

it

whether

come,

not.

or

be

I

like

we

afraid that it will

am

than

sooner

us—in¬

of

many

cluding the gentlemen of the ad¬
ministration—think.
will

dure

not

time.

proce¬

stroll

a

And

the

only

a
radical deflation,
graft and corruption

end to all

a

and

The
like

be

park in the spring¬
It will be rough going.

through

an

was

debased the assets of

we

call

a

to

service

government

monetary caesarea.

forced 'to

are

ing the dollar.

dollar

he

oi!

of
masters
of
currency
theory,
savings and loan
with full authority, to apply their
associations,
and
even
of
the
knowledge^
can
save
us from a
larser»-commercial banks,
which

few

a

that

forms

all

savings, banks,

perhaps make the pleas¬
prosperity

bonds

war

sucker,

world,

capitalistic

practically

sin

of

er

were

we

horrible dilemma.

a

committed

have

possible in our dollar
policy.
We coldly sacrificed the
asset value of deposits of widows,
orphans, old age pensions, just to
name a few.
We showed the buy¬

history,

prosperity

gold

U.

into

us

debased

Europe tice would

withdrawing

cease

the

every

time.

same

mone-r,

a

create

and

,

have

We

those

to

force

"politically

monetary

in

policies written
earlier.

monetary savings - without even
thinking that any system of jus¬

ton

We

The pages of

an¬

and

administrations

mone¬

-23

insurance

life

years ago or

at

unbearable."

end

of

plen¬

former

by

the Ameri¬

many

S.
They do so now
with the; same effect.
And, whether we like it or not,
this
gold outflow, whether ef¬
fected directly or via London, can

cannot practice the

we

com¬

currency
over

are

in

dwindled 20

that have been asked by Washing¬
from

such

be

practice deflation

return

in

or

that

men,

mak¬

told,

am

There

so

via London,

unfortunately, do not carry any
precedent showing that debase¬
ment of a unit can go on without

declare

pays.

not

billion

between

final devalua¬

tion of the dollar.

propor¬

the

choice
or

premium

a

unit.

tary

the

have

prestige has
national

the

can

Choice

half, we might run into a gold
panic.
I shiver when I think of

corporate bonds and prove to

their

in

be

of

losses

our

subsequently

to

depress
prices of government, World Bank
and

We

.

other

high in¬

accept some

then

would

simply horrible

a

radical deflation

I

ing.

currency.

is.

Our

debase

we

tragedy of major

a

this

and

more

which

at

that

constellation.

the dollar.

financial skill and

productive talent, we have made
horrible

speed

same

the dollar

mands

And

If

several countries today where

are

our

■

,

gold stock

our

dwindle

to

of

many

laugh.

foreign governments will
withdraw the yellow metal at the

solutions, about which
I currently have
ghastly dreams
practically every night.
our

going

happen,

lose

The Soviets and satellites would

more, as

agreeable

With all

below 40 cents.

even

that should

substantial losses.

would

we

allies.

we
are
going to run into even
Prices will once
.Just previously I tried to dem-" heavier trouble.
onstrate that our gold-position— again rise, the dollar can go from
already overdrawn — cannot un¬ its present 46 cents value to 42
i

(2115)

There

carry

billions

We

governments

on

have made

joke out of annuities

a

their books.

of

History, always having reflected

"achievements"

repeated

pidity, most probably
again.

of

stu¬

will do

so

:

'

But this

time we might endan¬
the entire capitalistic system.

ger

Therefore
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shares of echi¬
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warrants expiring

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$936,243,

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cal

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cleaners.
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primarily

sewing

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states, the District of Columbia,

gaged

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$1,000,000 of 6%

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notes

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1971;

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due

purchase

OS

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tures;

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come

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loans, thereby making
borrowing under

of

bentures, notes and related com¬
mon stock purchase
warrants, the
outstanding debt and capital stock

4"

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insurance

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from

•

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prices
interest

purchase warrants, -X j
companies for $1,~
000,600.- Atlas expects to apply
substantially all the proceeds from

e

>*

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xz

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proceeds

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accrued

stock

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decreasing

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are

option of the
before Nov. 1,

proximately
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ad¬
dition,
Atlas
has
commitments
early next year to sell 6% notef

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1960,

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headed

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a

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the

previous

figures

of

indicate

$200,027

in

against

year.

net
the

Un¬
in¬
two

months :ended. July 31, 1959, ccifi-t
pared with $157,455 a year a'gos

24

The Commercial and Financial Chronicle

(2116)

of

that

keeping

British Stock Exchange
Boom Continues

duty

Debs. Offered

public sale
$250,000,000

being

bentures

which, paradoxi¬

Conservatives to consider a capital gains tax

5.22%

Developments number of small operators got
during the weeks that followed into the market .again. So the
the Conservative victory at the market remains as vulnerable as
LONDON, Eng.

—

before, and setbacks dueTo reali¬
by
inexperienced
in¬

have

election

substantially

zations

the

vestors

and

optimistic

unable

to

confirmed

speculators who are
long views are
liable to occur at any time.
Most investors who can afford

forecasts
the

about

victory

a

likely to hold on to their in¬
vestments in equities. The extent
to
which
various categories
of
are

on

the London

Stock

Ex¬

change.

It is
ad¬

the

true,

equities, and within the categories
the
various individual
equities,
have benefited and are liable to

since

vance

n

e

e

a

.

very

s

spectacular as
Paul Einzif
people
expected it to
be. It was interrupted from time

trend is unmistakable.

time

by relatively sharp set¬
backs. But each setback was fol¬
fresh advance bringing
the Financial Times index of in¬

lowed by a

dustrial equities
to

again and again

fresh high records. On balance

rise~*5iAce

hundreds of thou¬

Even though

many

to

by the rising trend varies
widely.
But the
upward

benefit

Oct. 9 has not
b

take

disregard such ups and downs

to

effects of such

sands—possibly even
a

million

benefited

two—have

or

as

many

as

likely to benefit by the
Stock Exchange boom tens of mil¬
lions are left out of its benefits.
are

or

is

It

those who are

wonder if

no

left out

inclined to be resent¬

are

Their resentment

ful.

12 by Lord

Nov.

was

voiced

Pakenham, a

has
been quite substantial, especially
if we allow for the heavy over¬

on

position that existed at
the time, and for the resulting
heavy
profit-taking
after
each

course

advance.

growing
suspicion
with which
"the City" is viewed among the

the

polling

day

bought

The

why the rise has
been far from steady lies in the
reason

number of small investors
and speculators who are in the
market nowadays. Everybody who

large

the

has

snatch

it

for

means

tries

to

tax-free profit through a

a

Socialist
the

Labor

Institutional investors, and even

private

investors, think in
terms
of yield or
of long-term
capital appreciation. They do not
rush to take their profits as soon

large

as

there is

to take. Nor

some

they frightened
there is

as

soon

are

into realizing

as

setback. On the

a

there

''the

For

by Socialists
a

investors

financial

suffer

their

struct

rise

each

is

there
their

brokers

to

also

and

relapse.
operations

sell

after

immediately
The effect

a

of

on
prices
is
quite disproportionate to
grand total of equities in¬

usually
the

volved.

the

For

of

appearance

lower

markings

which

in London do not indicate

the

number

of

securities

that

of

next

large

number

orders

tends

ward.

So

operations
and

for

to

the

small

investors
were

take and

a

extent

for

of

small

instability

price movements.
after

the

election

great shake-out of the

was a

There

took

small

buying
push prices up¬

makes

erratic

Immediately
there

of

and

speculators.

substantial profits

to

large number of people

them.

Hence

the

sharp

re¬

not

ginning of

a

prolonged and fairly

dependable upward




movement,

a

to

a

past, and the envy

gained nothing is
influence the next

Even so, some

Conservatives

are

inclined to think that, having won
the

election^.'

could

the

afford

>.

Government

be

to

a

generous

winner. In quite unexpected quar¬
ters the idea that the Government

introduce

should

American

of

priced

are

the company

at

at competitive

sale

yesterday, bidding 101.4799%
and naming the 5%% coupon. The
maturity date
The

cluding
after

108.25%

at

Oct.

at

is Nov.' 1,

1960

31,

re¬

in¬

and

to

and

viewed

is

with

Socialists

gains

capital

a

favor.

If

abstained

only

yield

the

Opposition pressure.
So investors and speculators are
reasonably safe in assuming that
there will be no capital gains tax
cit

least

till

the

next

elec¬

tion, and possibly not

even

then.

after

Meanwhile the rank and file of

the Conservative Party is likely to
press

the Government hard for

reduction

of

the

stamp

Exchange
was

raised

duty

a

on

transactions,
to

an

exces¬

be used for advances to

and

associated

Bell

System,

subsidiary

companies' in-the

for the purchase of
offered for subscription by

stock

investor

feels

the

burden

of

desk

in

well

sit

who

us

understand.

who

at

active

an

office

brokerage

a

Most

pending

It

ing

limited

the

of

the

securities

a

of

amount

terecl

j

to meet

yet

who

man

the

much

out

it .when

of

on

he

tomers,

and

often his

very

the

in

office.

Yet.

fense.

just

of

$6,029,153,000

1959 con¬
of funded

$12,001,030,000 of capital
V

debt and

stock and surplus.

months ended June

For the six

of business.

'

.

.*-

,

with
$569,924,000

period of 1958.', For the 1958

calendar year

consolidated operat¬

revenues

ing

$3,304,for the

compared
and

and

were

^6,771,403.000

income before interest
deductions was $1,193,072,000.

tdfal

that

mutual

a

announced

has

York,

New

enue,

forum

fund

will

take place Nov. 23
to

9:30

p.m.

from 7:30 p.m.
the firm's office

in

under the direction of Merton Al¬

len,
Harris,
Upham
Representative.

Registered

The program, open to

and

question and
answer period. Mr. Allen will dis¬
cuss professional investment man¬
agement and portfolio potential

ing

followed

by

which

after

a

Richard

Lombard,

Registered Representative, will
speak

pricing, investment ob¬

on

A

Typical

A,

Day

their

to

get

the

before

desks

market

letters to be

are

inter-office

memos

that

must

time the market opens
the phone begins to ring in

ready

securities

a

quite

done

a

I

room

when

a

board¬

times

are

registered

a

repre¬

sentative has wished that he could

build
Some

a

fence

of

the

around

"sitters"

watchers

room

his

and

desk.
board-,

only need half

and

quote on Umpty Dumpty conver¬
tible
it

preferred?" asks one. "Or is
common?"

the

It is

Mr. Dutton?
"I

"Do

know

you

Dutton, isn't it?"

just

dropped

bother
in from

now

let's see,

I think I

but I
Opalacka
and I am a stranger here. I do
business with Nertzjand Co. there;
am

to

sorry

the

first

and

not

you,

right
time, it %the preferred
common."

the

reaches

heAooks

while I

in his
"Will

BEACH,

Usher

has

joined

Walston & Co.,
He

Calif. —John

Dutton

the

on

He

Midwest

after

staff

of

formerly

with

Co., and Dempsey-

he

book*-JJe finishes hia
very

writeS^-his- quote

makes

enough

much else/

Joes

use

there is
.meed

-

.

in

world

the

But

too.

place where he does
little prodding at ■ times.
one

a

Joe

gets.restless. He can sit, and
think, and make a' few leisurely
calls, but after a while he wants
to talk with someone. So he strolls
over

to

else

that

desk,

your

minutes

he

listen

to

to someone

or

has

thinks

few

a

his. personal

to'

problems and he says, "John, what,
do you think

I ought to do about

big girl Fannie, the kid is eat¬
ing so much I think she is going
to end up an old maid. Her mother
my.

is

worried

so

when

I

it's

that

all I

hear

get home at.night."' Ahd

take

you

one

look at good
him, "Joe,
diet and make her
good

old Joe and you say to

her

put

stick

on

a

it."

to

phone
wife.
will

Just

then

again,

rings
She

wants

your

tele¬

and its

your

if -you

know

to

stop at the cleaners and pick

the "wash and wear" because
feeling so well, and you

up

she isn't

"Yes, dear, I am busy dear,
dear, goodby dear." And

say,

O.

K.

Joe says, "That's the worst of it,

just

\vhen~you

blue

blazes

like

working

are

trying

to

get

some¬

thing done someone is always in¬

Now; to get back
she won't stick to a
diet" ;
'.' you look at Joe, you
look at the board, you look at the
telephone, and quietly and calmly
you say to him, "Why don't you
terrupting

you.

kid,

my

other

phone call i Later he obtains
the quote and hands- ft over to
Opalacka. Sensing^that this fellow
cannot be stoppeds and wishes to
involve him in d ; kmg discussion

.has bought
hud now have
tripled in value^die-finally dis¬
engages himself-thoroughly con¬
vinced that all the braggarts aren't
stocks-be

the

years

ago-

salesmen

but there

who

spread -it-ton too.

can

By
start

this
to

are

timeljfier is
do

some

~

customers

ready

counts—there

are

big

to
ac¬

bonds to check.

some

'Oaf.'

gain

SEC prospectus you

don't

You

so

much weight

them

read

that kind

on

of diet?"

This
as

an

in

definitely
"odd

ball,"

emotional

will
a

mark

control,

you

lacking

man

just

and

a

little sick in the head. But sooner
or

later if you don't

control those

"Joes and

their stories" you

be

to

trying

real

"nut

kind,

are

sell

house."

that

those

board-rcom

and

may

securities
You

know

don't
even

in

have

the

a

the
a

walls

padded.

& T.

Form T.
T.

constructive

thinking about certain of his

feed her

yourself and maybe she wouldn't

re¬

before- -he.- can get up
from his desk his telephone rings
again. About five minutes and an¬
but

Inc., 210 East First

-was

Tegeler & Co.

the

E.

this

answer

he. And., so. it goes,
discovers'-rrthe
stock
is

several

(Special to The Financial Chronicle)

the

answer

says

about

LONG

pipe,
If there is mail

.

for

quest

Joins Walston Staff

up

So he ambles in,

coronary.

This is all to the good—we can

to

Dutton

polite.

37th Avenue.

a

was

telephone call anddries to be

89-11

Or

clo.

we

as

upon you.

looks in his

a

an

they are ready to
Service is what
they want. "Could you get me a
opening

pounce

drawal

offices at

al¬

bit of work.

there

sure

am

many

has

man

In offices where there is

traded

Wylie is engaging in

be

By. the

statements,

S.

He works
the rest of

as

much

as

self about

digested and sometimes answered.

call?",

securities business from

nard

as

who cares? New

*

that have trading restrictions, and

you excuse me

Morris

half

Possibly he has some; money,
and doesn't 'need the com¬

Joe

also give their atten¬
tion.
In most busy offices there
are
advice&f concerning coming
new issues,
sales meetings, issues

concerning cumulative investment
programs, dividends and financial

N. Y.—

.

they must

will conclude the forum with talks

HEIGHTS,

extra: time oh his hands.

real nice guy<

a

he will get to it when he is ready.

answered

and memos from the cashier's de¬

while

JACKSON

of¬

John

Let the market

They
the morning financial

Umpty-Dumpty.

Wylie Opens

is

and takes it easy.

opens. >

book

M. S.

good
no

been

reads his paper, pulls out his

hour

an

telephone

tion.

have

boil,-and let it rip,
issues, so what?
for his needs
hastily scan
.and
he-isn't
going
to worry him¬
press, then they turn to their mail.
they

jectives, and policy. John Ahlgren
and Fritz Wurzel, also Harris, Up¬
ham
Registered Representatives,

the monthly with¬
plan, and share redemp¬

the

mean

for him. He's not going to end

Some salesmen try to read their

earnest

Harris, Upham & Co., 99 Park Av¬

He

with

and

Harris, Upham Forum

I

well. Anyway. Joe usually

as

some

missions

;

-.;

•

partment and other data to which

like

going to

am

alb

To

world

day-to-day problem faced by; maybe-he's just a low geared felevery securities salesman who, is ;low—get/ there': .today,; get
there,
producing a substantial - volume * tomorrow,*no top. of the sales -staff

$3,628,506,000 and total income be¬
fore interest deductions of $675,901,000

any

saved

is

There

357,000,

see

could

has

us.>

cus¬

asso¬

this

company
reported
consolidated operating revenues of

the

1959

30,

Joe—

every

don't

the

It

about

be¬

financial news in the morning and

sisted

I

here.

in

Joes

an

is

sieged by ■ his telephone, his
ciates

'"Joe."

describe

super¬

concentrate

can

Comes

that

seems

regis A the sort'of fellow. I

or

representative.

have

I

salesman

in

office has
special
reason why I should use the good
old name of Joseph to designate

have very little understand¬

ness

issue that is coming

new

And

people

.

not in the securities busi¬

are

several

soon.

can

subsidiaries at June 30,

Dean Witter &

small

those

investigate,

pass

tiie

,

Government.

the

may

Otherwise,

to

regarding deliveries and he should
along this look up bis records and determine
be of some interest.- which of his customers might be
in
it is just something interested
knowing about <a
we

companies,'" for extensions,
additions
and
improvements to
American Telephone's mwn .tele¬
phone plant, and for general cor¬
porate purposes.
" 1 11.
Capitalization of American Tele¬
phone and its principal telephone

such

Street.

particular

week

losses

other clients that he must contact

principal amount on and after Jnvolved reading of a prospectus,
a
financial;.report, or a compli¬
1981.
cated financial news item and get
The proceeds from this sale will

sively high level under the Labor
In

observations

tax
-

Nov. 1,

from

under

work in an office, or any
where the other fellow is
also busy at his job, possibly the
place

there¬

decreasing, to

prices

If you

precious time that is available to

1986.

debentures will be

new

deemable

pressing for it the Government
might consider the idea of adopt¬
ing it. But it is not likely to

Stock

be¬

who

be

election.

which

the election marked the

the

likely

when it

that

of

those

of

lapse that followed the rise. But
gradually became evident

If' these

losses.

1959-60 will

,

the

to

to

or even a major
develop. By the time
election the capital

may

the

tax

liable

new

tone,

relapse,

at¬

hands—is

course

a

the public
designed to "further investor
knowledge of mutual fund me¬
during the early part of the life
chanics in light of steadily increas¬
of the newly elected Parliament.
participation," will consist
Trees are not allowed to grow to ing
of
four
speakers treating vari¬
the sky, and in a few years' time
ous phases of mutual fund invest¬
a
steadier

additional selling orders. Of
the same is true when a

changed
tract

the tickers—

on

liable

are

people,
instead of losing
their money, had made large capi¬
tal profits through the apprecia¬
tion of their holdings "the City"
would be attacked on that ground.
From a political point of view
it
is
perhaps as well that the
Stock Exchange boom takes place

matter

in¬

to

issue

17

to

from

result of which some thousands

small

Nov.

on

maturity.
The under¬
writers purchased the debentures

recent minor financial scandals as

and

apt

attacked

also

Just Between Ourselves
a

account of a few

on

gains made in

are

be

to

seems

is

City"

other hand, many small investors

speculators

He

little consistency in these attacks.

very

incomes.

Government, in the
debate on monetary

But

masses;'

taxing such gains has
been defeated, so that it is now
safe to go in for short-term in¬
vestment or speculation (where is
the borderline between them?) in
order
to
supplement
heavily
middle-class

a

warned the Government about the

of

taxed

of

in

Minister

a

policy in the House of Lords.

capital gain on the Stock Ex¬
change. The Labor Party, with its
program of

and

Peer

heads

102.25%
accrued interest to yield about

and

to cease agitating for it,

cally, might come about if the Socialists were

Co.

&

Telephone & Telegraph Company
27-year 5%% debentures. The de¬

small
that the government is being pushed by

investors. He further reports
some

Stanley

nationwide underwriting group of
136 investment firms Offering for

and file of the Con¬

Stock Exchange transactions and sees such a step as
government's program to create a large class of

on

SECURITY. SALESMAN'S

make

concession.

a

Morgan

hard for the removal of the high stamp

in line with the

to

Amer. Tel. & Tel.

operators. He reports the rank

servative Party is pressing

numerous

a

investors

small

BY JOHN DUTTON

upward trend following the Conservative Party's victory, Dr. Einzig
attributes the market's instability and erratic price movements to the
influx of small

of

such

predicted London stock market

Commenting on the realization of the

of creating

program

class

By Paul Einzig
♦

duty, and it would be in
with the Government's,

Thursday, November 19, 1959

...

&

T.

Investors

conducting
from

a

securities

offices at 27

New York

Investors

Corporation is

City.

business

William Street,

Volume 190

Number 5900

.

.

.

The Commercial aix&;Financial Chronicle

(21x7)

25

I
'

:

:

■

x,

■

■'

'+

•

'

:

'53

'56

'55

v'54

-

'57

'58

'59

PERCENTAGE INCREASED

U.S. motor truck registrations have gone up an
estimated 19.9 per cent

Over

the

same

TruckStops has climbed 125.9

mmmm

PURE leads the field in service
to

a

growing industry

The Pure Oil Company
of the

and
In the

now

has

over

40

per cent

specialized truckstop stations in its marketing

more

are

on

the

from Minnesota to

Company recognized the growth

the Dakotas to

potential of the trucking industry

board.

and

the

need for special service

Florida, from

the Eastern Sea¬

Pioneering like this—the constant

stations that would meet the needs

search for

of truckers.

keting opportunities—is

,

Today pure, industry leader in

truckstop service, has 235 of these

in

high-volume outlets strategically

the

pure

located along key

Wacker

truck routes

new

and

of the ways we are
sure




area

way

early fifties, The Pure' Oil

BE

since 1953

period, the number of

pure

profitable

mar¬

another

able to keep the

for you.

oil

company,

35 East

Drive, Chicago 1, 111.

SURE

WITH

PURE

per cent

PURE

it

26

The Qpmmercial and Financial Chronicle

(2118)

is

opinion,

What Time Is It

Stock Market Clock?
Continued from page 3

unemployed and many

million

ten

The

ahead.

uncertainties
for

undervaluation

the

reason

the

was

inability of investors to believe
the earnings of 1949 would con¬
tinue. Fears of a postwar depres¬
sion, seven million unemployed
another

and

1929

the

in

were

offing.
The

of

set

most

1949

of

were

who

investor

The

unusual.

caused

that

factors

undervaluation

the

return is
doomed to disappointment.
Like
1929, the 1949 undervaluation will
not occur again in the lifetime of
today's investors. 1949 was prob¬
ably the start of a new era which
we might call, to use Keith Funston's term, an Era of Peoples'
Capitalism. This era, like 1850 to
1929, will be: an
era
of great
is

waiting

for

them to

growth, new inventions and prod¬
ucts
of even greater magnitude
than the previous period.
Its re¬
wards will be gained by the many
rather than the few. In timing, it
should be similar to 1850 to 1929.

However,
enthusiasm

of

growth and

advance will not be
line.
There will be

in

straight
many interruptions.
There were
many
in the 1850-1929 pattern.
FIGURE

I

portrays the 1850-1929

period.
There

other

of course, many
and downs during this

were,

ups

period,

but the five main

noted

waves

The

above.

present
pattern will probably correspond
roughly to the graph, with 1949
corresponding to 1850.
are

been

principle is that price movements
usually
consist of
five waves.
Three are in the direction of the
move and two in an opposite di¬
rection.
This pattern occurs in
both major and minor moves. The
moves

more

difficult

minates

pattern

early in

the 2000's.

The

of

wave

The

this

upward movement.
is how far are we

question

from the

the

fop of the first

start

wave

and

Change

in

market,

occurred

averages

This

1956..

and

rection

fourth

third

by

The

Doubts

Are

We

the

Was

wave

several technical

advance

for this.

reasons

that

advance

The

while

started

in

Oc¬

part

of

the

tober

1957

broad

1949 advance to date, must

be considered
A

own.

since

a

bull market of its

a

indicates

1884

time duration

kets

if

that

the

of

the

advance

was
partially
earnings and par¬

correction

the

of

21

The

expect

in the next ten

the next decade could easily
comparable to that of the past
years, but the undervaluation

over

caused by low investor confidence
in 1949 does not exist

today.

confidence

is,

In¬

currently,

It is higher than

at any time since the 1920's.
Many
of today's prices reflect a belief in

the

continuation

of

the

portant phases.

is

obviously more
temporary change

in confidence than it has been for

quite

some

time.

Just how far

we

toward the

are

end

of the advance that started
in 1949 might be
gathered from an
examination of the price
pattern

of
in

that
a

advance.

straight

FIGURE

It

line,

has

not

been

shown

as

in

II.

major

This is
ment

a

advance

in

FIGURE

characteristic price

and

is

shown

as

I.

move¬

Elliot's

Wave Principal.
Quite a bit of
study has been done on this inter¬
esting theory. Hamilton Bolton of

Bolton-Tremblay, Montreal,

Presi¬

dent of the National
Federation of
Financial Analysts
Societies, is the
leading authority on this
subject,
as

well

demand.

as

occurred
the

on

The

money

supply and

conclusions




The

25%.

If

the

750-800

on

the

five

12%.

The

years.

The

the

question,

rials

had

spread

in

"What

is the stock market going to do?"
is becoming more and more out¬

are

moded.

on

like
a

The

the

market

Western

"good guy"

either

bull

of

next

the

or

a

five

years

markets

market

will prob¬

individual

in

years

will have varying effects on
individual stocks and

of

to
for

changes in
the

thinking, not only; at
level, but from

business.

and

In

order

We

that

must

a

realize,

%

example,

great many of our tax laws

archaic

are

for

"

under

and

that

no

longer

exist. They are in need of a thor¬

ough
that

revision.

we

like

We

a

rathole

must

must

must

realize

be

realize

halted
out

We

realize

of

be stabilized and
creased if

we

are

that

or

ourselves
must

farm subsidies.

on

that

certain

price

productivity in¬

exports to pay for the raw mate¬

downtrend,
each

as

con¬

is

in the
I

Conclusion

conclusion,

or

1961

at¬

and

1957 low.

maybe
beyond.
The
time duration of a busi¬

average

cycle is 27 months to three
The present upward busi¬
cycle

is

steel

the

started

only

19

April

in

months

1958

old.

The

strike

shortages will prob¬
extend
the
cycle through

and

first

surpass

into

half

1961.
of

Earnings in

1960

could

the rate of $11

and

average

increases

extras

to

are

for

individual

look

be

drawn

present
into
If

pal

overspeculation.

advance

does

not

The

All

yet

use

Elliot's

the

on

fit

October

advance

1957

princi¬

wave

lows,

from

we

the

have

a

number of

tions.

alternative interpreta¬
On shorter term
moves, the

various

waves

are

ognize while they

difficult to

rec¬

taking place.
One possibility is shown in FIG¬
URE

are

III.

This would indicate that
now

An

►

this category.
we

in .the

fifth

or

final

we

are

wave.

equally valid possibility, in

my

of

issues
to

1957

the

of the

of

this
is part of
a
new
resulting from the Fed¬
eral government's attempt to sta¬
bilize the economy. These various

Km. 1157

Oct. 1157

pattern

built-in

stabilizers of

i t y,

unemployment

'

r

government
rates

and

narrower

a

wider

10

years

secu-

insurance,

spending, money
others, result in

Sep. 1151

many

a

the

social

range

range

prior

average

for

stocks

for bonds.

to

World

yearly

and

In

the

War

II,
fluctuation

from

high to low in stocks was
44%, and in bonds 8%; In the 10
years

after

average

stock

World War II, the
yearly fluctuation in the

market

had

dropped

to

1964

the

be

and

probably have
on

investment

is¬

to

the out¬

individual

issues.

able to solve

the

problems of the next

remaining static and

owning the "Favorite Fifty."

Au,.i1St

advanced
end

many

five years by

In

list

12,

industries

opinions

not

investment

I85o

counter to the downtrend.

long-term advance is usually
dynamic with heavy vol¬
and

broad

will

our

for

market

including utilities, grocery
chains, drugs, tobaccos, finance
companies and foods. With insti¬
tutional investors continually in¬
vesting in the equity market on a
dollar
averaging
plan,
certain
types of companies will run

thermore, the fifth and final phase

ume

also.

in

We

will

had

year,

expected. This is hardly the back¬
ground for a market decline. Fur¬
a

extending

kets

time

from June

in

dividend

some

and

recent

is

Nov.

on

will- still be at 648.52.
During the next five years, we
will have to drop the outmoded

in

the

that

average

But in the new pattern
markets, this selectivity

of

A

well

earned

the second quarter of 1959. Divi¬
dend
payouts have been below

of

at

have

800 and

bounded by

program

That

worked very

im

into declining mar¬
1957, for the first
history, it would
have been possible to have been
100%
long of stocks and have
shown a profit despite the fact
that the averages declined 20%.

years.

and

S. Steel

would

50

range

a

roughly 750 and 525 for the next
The Dow-Jones Indus¬
trial average on Nov. ..12,
1959,
sold at 648.52.
It is entirely pos¬

a
better-then-average 100% ad¬
The buyer of another blue
chip issue, Standard Oil of New
Jersey, would have a loss at to¬
day's prices if he bought at the

viewpoint of the busi¬

ness cycle,
the odds favor a con¬
tinued upturn in business well into

ness

U.

of

of

in

five years..

vance.

From the

1960

low

out in 1960

around 750 to

at

the

believe

I

market will top

then hold

not

buyer

1957

for ' the, next -several-

envision

yea rs,

extreme

period

It will probably result
highly selective market that

segments.

have

The

tained.

ness

this

example, the market has advanced
63% from the October, 1957 lows.

volume

low

new

expect

during

segments of our econ¬

at the same time it
constructive toward other

be

will

We

must

to create enough

will
times

at

while

omy,

change

markets.

costs

effects

have- disturbing
on

sues.

inflation
will

we

world

their solution.

time for

need

Enactment of such a program

concept of bull and bear markets
and
concentrate
on
the outlook

government
spending
billions we are pouring

the

down

We

cannot afford much of the

needless

roads,
low-cost

as

These and many other problems

will

sible

enacted

were

conditions

needs such
schools
and

public

stock

the challenge of a dynamic
nation, we will have to drop our
complacent
attitude
toward
a

order

reduced in

taxes

hospitals,
housing.

to

meet

great many of our problems.

and

In

government

labor

must realize that gov-|
spending must be stream¬

We

help create the capital needed
more
efficient plant and for

the

various

must

order to

in

place in the competitive

our

lined

the next few

terrific drag

sharply

increased

be

a

We must realize

expenditures

research

that

eminent

is¬

The events

and

economy.

our

race.

bear, but
of up and

sues.

outmoded

keep

nor

combination

a

down

The

bear.

or

no

"featherbedding"

and

programs

longer
movies, either
"bad guy," or

ably be neither bull
rather

is

will have to import in in¬

we

creasing amounts as our own raw
materials dwindle. We must real¬
ize that outmoded "make-work"

is

past

a new development.
long experienced selec¬
tivity in advancing markets. For

a

important

would

issues.

We

from

While the decline

I

selectivity
individual
This is

the

in

decline

the most

It will be noted that the
advance
has been in five waves
like the
advance
shown
for
the

1850-1929

of

low of 613 in Septem¬
ber, volume failed to increase. In

1960

a

stocks.

im¬

The heaviest vol¬

trading

tinued to

ably

market

the decline

on

usually associated with

type

upward

vulnerable to

was

only
the top.

since August have not been of the

earnings trend well into the 1960's.
The

fluctuations

narrower

advance
previous
bull
markets
was
years.
While this is the pattern
105%.
The present advance to indicated for the averages, it does
August is only 63%. In addition, not necessarily apply to individual

The earnings improvement

vestor

The

lasted

percentage

average

increases

It is unrealistic to

extremely high.

mar¬

market
months if August

in

be

30

bull

present

an

ten

14 bull

months.

of the

been

has

drastic undervaluation that existed

years.

years.

consolidating phase rather than a
steep decline. This consolidation
or resting
period is needed to al¬
low earnings
to catch up with
first overenthusiastic appraisal of
the years ahead. Therefore, after
the market tops out in 1960 or
1961,
I
would
expect
a
broad
consolidating period for several
years.
During that period, the
Industrial average might hold in
an
area
bounded roughly by 750
and 550.
At present
levels, the
market is about half way between
these extremes.
This trading
range could last as long as five

study of 14 bull markets

683 to 640.

1949.

really

1949 completed at the August
Going back to Elliot's Wave
high of 683 and are we now
Principle, the second wave of a
in a major downtrend?
It is pos¬
major price advance, as depicted
sible, but I doubt it. There are in
Figure I is usually a broad,

ten-year

similar advance

a

20%.

was

was

reach

had

recent

1959

week

a

not

from

of

a

be

Per¬

Dow-Jones
industrials, I would
expect a decline to around 550525, or about 28% to 32%.
The
averages were at 550 about a year
ago
so
a
return to
that
level
would be no great catastrophe.

in Major

long-term

decline

averages

Downtrend

ume

to

will

1961

750-800.

in

decline

1957

1946

the

was

has

decline

severe

cor¬

fifth

The

wave.

The market

ended

that

This

1957.

to

started from the October 1957 low.

first

due

or

bond
to

groups.

wave

20%

a

about <420

to

October

in

1953

from

the

was

followed

was

June 1949 low of 160 to the August
1959 high of roughly 680.
This

tially

1960

around

and

probably

centagewise, this is an advance
glance at FIGURE II would indi¬ only
about
20%
from
present
Foresees Consolidating Market
cate that the stock market is in levels—as
compared with a rise
A
the
fifth or final phase
of the of 300% from the 1949 lows.
consolidating market for a
advance that started in 1949. The
long period of time fits into the
first wave was the advance from
probable economic background for
Might Reach 550-525 at Most
the 1949 low to near the end of
the
foreseeable
future.
Mr.
What will follow after the mar¬
the Korean war in 1952. The sec¬ ket
Krushchev's
recent
visit
has
reaches
a
high in 1960 or
ond wave was a mild correction 1961?
brought home to us the fact that
I believe the market will
or
consolidation until September
the war with Russia will be fought
probajbly have a decline some¬
1953.
At that point the market
what greater than we have wit¬ on the economic front rather than
was still greatly undervalued and
with hydrogen bombs and missiles.
nessed in quite some time.
This
a
broad
advance to 525
in the is not as ominous as it sounds. This will
require some
drastic

volume indications

terms

Dow-Jones Industrial average has
advanced
over
300%
from
the

due to increased

in

high

18%,

increased

Thursday, November 19, 1959

.

.

of

of the second.

Present Market Vulnerability to

The

pos¬

1962.

as

1959

somewhere

is

present market is still in the first

or

conclusion

reached

of course, much
to
recognize.
A

are,

and I would expect

one

be in 1961

is
that
the
of 683 is not
top of" the bull market.
I
believe it probable that the stock
market will have a typical fifth
wave climax with sharply higher
volume and
speculation in sec¬
ondary issues.
The high to be

market
ended
in
the present bull
the August 1959, it is well below aver¬
present major advance to have a age in terms of both time and
similar movement before it cul¬ percentage advance. The average
five-wave

This

usual

late

as

My

time. In very

minor

and

wave,

tober 1957 will

accurate over a period of
August,
simplified form, the the

quite

temper the rosy
this
pattern, the

to

third

the

only
the cul¬
are

mination of the advance from Oc¬

sibly

have

work

Elliot's

in

shown

one

This would indicate we
in

from

the

FIGURE IV.

the

on

.

Oct. VIST

Volume

190

Number

5900

well in the past 10 years,
not meet the probable

...

The Commercial and Financial Chronicle

but will

Humphrey Gets

changes

of the next five years. " "
'
If the picture is somewhat, ob¬

Medal of Merit

for the next five years, it is
much
clearer
for
the
next
10

No

Our

Reporter

on

years.

This is

and we

are

of

italism."

growth country

a

to have retarded
the interest among large and small
investors in the 4%s and 5s. They

of

After

first

the

wave

is

'

ended and the needed consolidat¬

phase of the second wave
completed, the economy and the
stock market will again embark
\Upon another advancing phase.
I
;
-

do

not

years

Merit

of

rto

ni

of

b

e

to

do

re¬

Medal

BY

of

it

The
-

an

a n-

-

short-

'\

'.Vi.-'*An

address

by

TabeH

Mr.

Assn.'s

Arizona " Bankers

before

56th

the

.

Convention, Phoenix, Ariz., Nov. 13, 1959.

,

Hum-3

Mr.

to

:

presented v
Geo. Humpnrey

•

phrey at the
Society's ' an-

Lenahan Alu m A' >'

riual

Window

dent of the

-

dinner Nov.

18.

-

Dr.

Corp.

;

Corp.

Aluminum

■

additional

494

stock

mon

shares

of its

stockholders

common

157,com¬

its

cents)-to

(par 50

record

of

Nov.

2, 1959, on the basis of one

new

share

then

held;

Nov.

20,

shares

each: two

for

School

ton

Window

presently offering

is

Gaylord P. Harnwell, Presi¬
University, made the
presentation. Attending were sev¬
eral hundred alumni of the Whar¬

Stock Offered
Lenahan

rights to expire on
1959.
The subscription

Finance

of

and

merce

dustry.

Com¬

and

of

representatives
business
and

Philadelphia

-

..

..

in¬

Mr.

Humphrey, who was Secre¬
tary of the Treasury under Presi¬
dent
Eisenhower from January,

Share

Corp., of Miami, Fla., un¬
derwriting the offering. Unsub¬
scribed

shares /will

J

publicly at $5
derwriter

per

has

offered

be

share.

The un¬

to use its
best efforts to effect the sale of all
agreed

If all of the shares

of the shares.

have not been sold by 5:00

(EST)

p.m.

until July, 1957, was influen¬
tial in the organization of the Na¬
tional Steel Corporation in 1929.

o'clock

be

issued

all

and

subscriptions will be returned in
full.

'The net proceeds will be used
increased

finance

A

graduate of the University of
Michigan Law School, Mr. Hum¬
phrey
practised
law
with
his
father for five years in Saginaw,
Michigan, then entered industry
and finance as general counsel of

inventory

to

re¬

quirements, for expansion, and the
balance for working capital.

Treasury

the

M. A. Hanna

1929 he

and

dent

he

was

of

Board

after
Mr.

Co. in 1917. By

company's Presi¬

became

in

Chairman
He

the

was

its

Board

1952.

elected Chairman of the
National

Steel

1957

in

leaving government service.
Humphrey also

was

influen¬

Coal Co. in
formed the world's

1945,

which

completed for 1959.
How¬
it is evident that quite a
of

banks

still

have

and

these

switches

likely be going

will

ganize the Iron Ore Co. of Canada

Stock Offered

iron

to

Previous

Gates Carter & Co., Inc., of Gulf-

10 publicly
offered 175,000 shares of class "A"

Miss.,

port,

on

cumulative
50

Nov.

common

stock

(par

cents) at $1 per share, on

a

best

efforts basis. The dealer discount
is

cents

10

per

share.

An

ad¬

ditional 67,500 shares

of class "B"
(par 50 cents) will
be issued in payment of property
common

stock

acquired by the corporation and
payment
of
underwriting
and
other expenses.

International

Tuna

develop the Laborador-Quebec
ore deposits.
Gold

Wharton

Charles

E.

recipients
Medal

Wilson

of

have

final month of the year. The year
1959 has been a 'Toss year" for
the banks as far as Treasury ob¬

for

funds

will

continue

to

The

issues is progressing in a very sat¬

flect this demand for credit by re¬

isfactory manner with the 4%%
certificate evidently being bought
by those investors who are inter¬
ested in an obligation which is
somewhat longer in maturity than
a
Treasury bill.
The four-year

maining

4% %

period

now

panies

are

money

market will

th^t the steel

com¬

operating again.

The

doubt

no

re¬

the restricted side.

on

is

an

increasing amount

but

stepping
there

around

up

also

is

for

th,e

tax

exchanges

fair

a

demand

longer-term

dis¬
pension funds,
particularly those that have to
confine their purchases to Treas¬
count

ury

is

issues

from

obligations. In addition, there

some

selling of government ob¬

means

that

To be sure,

going
a

011

tax

swaps

have been

most of the year, and not

few institutions have this opera¬

v

Federal

issue
000

on

of

of

Intermediate

Nov.

18

offered

approximately

the

"magic

that

5s"

this issue

there

been

Mellon, 1953; Thomas
1954, Cleo F. Craig,
1955;
Henry
Ford,
2nd,
1956;
Ralph J. Cordiner, 1957, and J.
B.

McCabe,

Credit
new

$132,000,-

tures, dated Dec. 1, 1959, and ma¬
turing Sept. 1, 1960. Priced at par,
the new issue is
being offered

Peter

and,

are

work

money

000

3.70%

Dec.

1,

refund

$196,000,-

debentures

maturing

used

to

1959.

secu¬

Fitzgerald Opens

NAUGATUCK, Conn.—T. H. Fitz¬

gerald & Co. is acting as a dealer
in

mutual

fund

securities

wm,-

Wm
'WW*,.
W'// ',0' J"

^

'

wmzmw

Detroit Basis Club

coumT
TRUST

COMMUNITIES

OFFICES

directors

were

UOMPAIVY

THE FAIRFIELD COUNTY TRUST COMPANY
Harold E. Rider, President '■ *

elected for 1960:

Harry

H.

Jones,

II,
STATEMENT

Secretary: Wm. Chapel, McDon¬
ald, Moore & Co.
Directors: Edward J. Parr, Mer¬
rill
Lynch,
Pierce,
Fenner
&

Smith

and

Duane

Billmeyer,

Paine, Webber, Jackson & Curtis.
Peter
&

-1

y, 1V i.>

OF CONDITION AS OF SEPTEMBER

>

30, 1959

Robert

Seiber, First
Michigan Corporation.

Whitman, Watling Lerch-

was named Social
Chairman and Jos. M. Ryan, Ryan,

Co.,

LIABILITIES

RESOURCES
Cash and due from banks. .$ 14,277,674.86

Capital

U. S. Government Securities

45,454,283.53

Surplus

Other Bonds and Securities

16,450,638.75

Undivided Profits

Loans and Discounts......

101,608,944.17

Total Resources

1,639,483.24

463,999.85

Other Liabilities

17,236.19

.........

Unearned Discount

402,930.70

.............

.......

$181,627,090.14

Total Liabilities

(Special to The Financial Chronicle)

GREENWICH

RIDGEFIELD
-'-'t

STAMFORD
DANBURY

DARIEN

NORWALK

BETHEL GLENVILLE

NEW CANAAN

WILTON

RIVERSIDE OLD GREENWICH

■

NOROTON HEIGHTS SO. NORWALK SO.
'

WILTON, GEORGETOWN-REDDING

MEMBER FEPEPAl DEPOElT INl'JRANCS CORPORATION

1,675,020.65
1,292,442.43

164,454,83 L47

Deposits

Evans MacCormack Adds

1

5,486,250.00

6,615,062.50

Reserves

3,415,381.94

Other Real Estate

Other Assets

$

13,740,795.74

Banking House, Furniture
and Equipment

from

offices at 66 Radnor Avenue.

rity.

Jt
WWW0ZWW

BAKERSFIELD, Calif. 7-Jack G.
Gray has been added to the staff
Vandervelde Branch
of Evans MacCormack & Co., 1675
L. Vandervelde & Co., Inc. has Chester Avenue.
He was previ¬
opened a branch office at 46 Ex¬ ously with E. F. Hutton & Com¬
change Place, New York City.
pany.




is still

in this

T. H.

a

indications

mm

Grace, 1958.

through
John T. Knox,
Fiscal
Agent, and a nationwide selling
Sutherland & Co., Publicity Chair¬
group of securities dealers. man.
|
~
'
Proceeds
from
the
financing
be

even

WvW'W

en

will

dollars.

.VA%&V&,YA',S/savs.*.

m

bd

investors

is selling at

savings bank

being put to

for

(then

Richard K.

of

nine months deben¬

5J/4%

cannot

As the sit¬

Presi¬
Corp.),
1950;
Benjamin Fairless,
1951;
Crawford
H.
Greenewalt, 1952;

Treasurer:

a

any,

"rwr

Kenower MacArthu.r & Co.

Debs. Offered
Banks

if

shapes up, this most
likely means that the period of
recovery will be extended Well
now

dent of the General Motors

President:

The

damage,

uation

Elects Officers

Federal Interest

Credit Banks

The long steel strike has had a
too unfavorable effect upon
the economy, but the extent of
not

lion

attraction

premium,

■

■Iv

-

Also, individuals are buyers of
issue, with indications that
into 1960. This would seem to in¬
money which had been in com¬
dicate that the tight money con¬
mon stocks is now finding an out¬
let in not only the new 4%s, but dition will continue and the def¬
likewise
in the
5s
of
1964.
It icit of the budget will probably
be in the neighborhood of a bil¬
seems as though there is still con¬

the

though

mortgages.

.

the

in

and

;

measured at this time.

ceeds

loans

out-of-

prominent ones making com¬
mitments in the refunding 47/ss.

savings institutions, with the pro¬
for

smaller

..

Tight Money to Continue

the

siderable

used

V

town commercial banks are among

ligations by commercial banks and

being

the

be obtained from sav¬

attract

to

sizable

of activity in government secu¬
rities because institutions are not

only

continues

note

can

ings accounts or government savr
ings bonds. The relatively short
maturity and the high coupon
rate means that price declines will
be at a minimum, even though in¬
terest
rates
might
go
slightly
higher.

buying from institutions that have
savings accounts.
This

Portfolio Changes Enlarged
There

which

digestion of the refunding

grow,

since the rebuilding of inventories
will be going on for an extended

the

coming government
venture will compete with these
two outstanding high coupon ob¬
ligations
The 4%s and 5s, of
course, .are not competitive with
long-term corporates and selected
municipal bonds. However, there
is evidently more than a mod¬
erate amount of glamour to these
two Treasury securities becatise
the belief is gaining momentum,
that the future offering of middle•
term high coupon government ob-f
ligations for either refunding or
new. money raising purposes will
» riot
be sizable enough to have
more than a short lived effect, ori
these two issues.
Also, the in¬
come available in the 4%s and the
5s in considerably better than that

Recent Issues in Demand

quarter of next year. This would
to indicate that the demand

the issues to be

feel that

in

the

is a
Mississippi corporation organized
Dec. 31, 1954, as Marine Sales &
Service, Inc. On Jan. 14, 1959 the DETROIT, Mich.—At the Annual
corporation adopted its present Meeting of the Basis Club, an as¬
sociation of young men active in
name.
the municipal bond field in De¬
troit, the following officers and
Corp.

most

well into the

on

largest bituminous coal-producing
company. In 1950, he helped or¬

Int'l Tuna Corp.

tax

exchanges which have to be made

seem

tial in the formation of the Pitts¬

burgh Consolidation

ever,

ligations are concerned and, with
short-term sector of the govern- earnings from other operations of
market. A > *;
J. ;
\
these institutions on a very prof¬
There is a rather general feel¬ itable
basis, it is not surprising
ing now that the peak demand for that full advantage is being taken
money and credit will not come, of the tax situation, j.//
until sometime during the second

f

Dec. 20, 1959, then

will

shares

no

on

The

tion

number

not

used

ment

1953

"

price for each shareholder is $4
per share, with Plymouth Bond &

obligations.

rently prevailing*are that these
funds, will be obtained in, the

achievement," ''
was

Annual

*

mar¬

on

as

will be rasing new money in the
near future and the opinions cur¬

'

■

seems

and medium-term govern¬

ment

The

capital

and

y

the stable side,
though there is
improving interest in both the

since it

,

*

m o n e

kets have been

has

n

e

•

p*
award, ;
; given-• yedrly *
by 1969 < or somewhere around
125J3 and 1500 in the Dow-Jones /'for outstariding business 'f
Industrials/' / V K
™
"
:

CHIPPENDALE. JR.

-

n

nounced.

the 300 % rise of the past 10 years.
It could, however, be 100% higher

JOHN T.

Alum¬

vania,

expect that in the next 10
the market will duplicate

Gold

Steel

the

Society of
University
Pennsyl¬

the

selected

1959

W- h

a

National

of

been

the

School

ing

<

has

ceive

"People's Cap¬

a

Humphrey, Chairman

Board

Corp.,

still in the early stages

our new era

the

of

Expected

impending new money rais¬
operation of the Treasury

does not appear

.

scure

George M.

Competition

The

ing
.

27

(2119)

$181,627,090.14

t(

28

The Commercial and Financial Chronicle

(2120)

should

men

AS WE SEE IT

(Continued jrom page 1)

which

judged by such relatively isolated features as these. If the
Administration is bringing something forward that it is
asking Congress to adopt and make permanent and the
people to accept as something they are to live under
permanently, then it must be inspected in detail and ap¬
praised as a whole. When that is done, it is evident—with
deep regret be it said—that the Administration fails by
almost as much as its predecessors in getting to the heart
i

:

-

problem and formulating a real solution. If this
be regarded as a harsh judgment, let the facts speak for
themselves. When they have done so there can be no room
for doubt about the conclusion that must be drawn—or
of this

at least

it

so

to

seems

us.

place it envisages a "voluntary retirement
of land from crop production for the next five to ten
years," voluntary but induced by payments from the tax¬
payer to the farmer for not cultivating his land. Of course,
something of this sort or its equivalent has been going on
for a long time. It is now to be "expanded." What, pre1 cisely, the Administration has in mind, the future must
disclose, but unless it is utterly different in principle from
anything that has yet been undertaken or even suggested
it can hardly be regarded as even a sensible palliative.
Paying people not to work or not to produce, whether
they be farmers or anyone else, simply makes no sense.
The determination of what ought to be produced and how
much and what ought not to be produced is a function of
In the first

-

•

a

free market. There is

no

need either to assist it now or

Research

•

"

.

designed to find more and larger uses for
products is an old, old idea and one which within
normal limits is to be approved. Precisely how effective
such a program sponsored by government is, or can be
expected to be, is another matter. Tndustry itself is alert
and very active in its search for the materials it needs.
There is no reason to suppose that it is overlooking many
important possibilities of using farm products. Certainly
the range of uses to which farm products are now put is
very much larger than was the case only a few years ago.
Of course, it is to be expected that still further uses will
be found from time to time. It is, however, not a source
of demand that may reasonably be expected to open new
areas within a short
period of time no matter what the
extent or the range of the research.

with the labor of their

own hands. There is
absolutely no
thought of lifting such peoples out of
their sufferings and their want
by making idlers and sup¬
pliants of them. If sound humanitarianism suggests that

soundness

in any

send foodstuffs to various parts of the
world, why by
means let us do
so, but let us look elsewhere for a

we

all

solution of

our

own

so-called farm problem.

As to the Administration's

program to assist farmers in low

attain

a

areas

to"

higher standard of living," the thoughtful observer
only wonder what this part of the "permanent" farm

can

solution is to be. It
is

income

certainly has

an

ominous sound. There

no

telling what the politicians from such areas will
think up to have the rest of us do for their
constituents!
The proposal as presented has a
very pronounced New
Deal ring.
Any specific critique of such an undertaking
must, of

course

await further detail, but, for our
part, we

find it difficult to
be accorded

of

our

a

farm

imagine any likely program which could
place in any reasonable or realistic solution

problem.

Agriculturally

we

are

in

a

mess.

frankly faced. Precipitate discontinuance

Let

the

fact

be

of all New Deal

and New Deal-like
programs would without question bring
disaster to
many individuals and a period of trouble for
all the rest of us.
Any realistic man must and would take
all this into consideration in
formulating any plan to get
us out of this mess.

When, however, we begin to formu¬
permanent" program we must never lose to sight
the fundamentals of the
situation. One of these indeed
late

a

the fundamental of all
of

having

The onlv

an

wav

the market

fundamentals—is the absolute need
agriculture which stands on its own feet.

that such

an

end

can

be reached is to

place to determine how




many men

permit
and which

and how

and

many
elsewhere.

livelihood

length of time at

nomic expansion

on

the other,

are,

We

also of necessity, adapting to 20th

our

££ ^tropomaTareas'^^We'ved
a

'

—

Thursday. November 19, 1959

..

goou

of their growth in
19th century technol¬

pan

response to

this necessarily means that
metropolitan areas must undergo

ogy,

Investment

Implications of
Our Population Growth

Continued jrom page 1

that

through its effect

tion greater than that of the entire country in 1950—that is, they
may have a population of some

on

the marriage

and birth rate, produced a resurgence in national population growth

which

will

nomic

development and

expansion
two

be

three

or

stimulus

a

for at

to

eco-

business

least

the

decades.

-

.

v

the U. S. is confronted
with
increasing annual
additions to population between
now ancl 1980.
In 1958, the U. S.
increased
by
about 2.5 million
persons.
Between 1960 and 1965,.
we

may

average

million

three

lion

and

1975, five million
1975

persons

fected

1970

and

and be-

persons;

1980, six million
year. The rate of in-

will

by

necessarily

this
for

facilities

of

year;

and

per

vestment

per

1970, four mil-

between

persons;

tween

increase

an

persons

1965

between

and

need
the

to

be

af-

increase

production
for the

of

services

ex-

panding American market.
Metropolitan Area Explosion
Even

in

resurgence

our

than

J65 million persons. Thus, while
the

of

population

the

United

The

second

*950 and 1980, it is possible that
the population of metropo]Iitan
United States will almost double.
Metropolitan Area
Decentralization
While

United

the

population

States becomes

centrated

in

more

standard

con-

metropoli-

Metropolitan rings
more
rapidly

growing

central cities in the United states

because

central

average>

since

cities,

about

the

on

1020

have

up The population o£

metropolitan

our

has

areas

con-

tinued to grow with the expansion
of
the
economic
base
Central
cities tend to have

boundaries

the

to

be overlooked.

are

charter.

of

accounting

of population

^mple that Trends" frequently

a| a whole increases toom been fuled

5* to U*

factor

for decentralization

does

relatively fixed

forth

set

in

state

a

Because economic

reality

not

stop at arbitrary city
continued population

limits,
growth'

necessarily
transcended
within city political boundary lines. The
such
areas
is becoming increas- continued growth of metropolitan
ingly decentralized. Larger and areas has necessarily meant in]arger proportions of the popula- creasing proportions of growth
tion
resident
in
the
standard beyond city limits,
metropolitan
areas
live
in
the
The decentralization of metrotan

population

the

areas,

suburban

rings

rather than in

of
such
areas,
their central cities,

half of the
century,
metropolitan
rings
in
standard metropolitan areas grew
During

the

first

politan

populations

area

expected

to

continue.

may be
Observed

trends indicate

that, between 1950
1980? while the total popula_

and

tion

of

standard

metropolitan

the

population growth is the increas-

concentration

ing

popula-

a

increasing decentralization simul¬
taneously with experiencing ex¬
plosive growth.

times as fast as their central areas almost doubles, the populatotal national cities. In the last decade of that tion of central cities may increase

dramatic

more

they will contain

next

The economy of

of the populaUnited States in a

Period, between 1940 and 1950,
metropolitan suburban rings grew

by oniy 30%, while that in metropolitan rings may increase by

relatively small number of urban

times as fast as central cities, about 180%. Of a possible increase
Between 19o0 and 19o5, metro- 0f 80 million persons in the popu-

agglomerations designated by the

Politan rings grew seven times as

tion

the

of

lation

of

standard

metropolitan

central cities. While cen- areas, only 16 million would be
metropolitan areas." A standard tral cities increased by 4%, metro- added to the population of central
metropolitan area is a city of politan rings increased by 28%.
cities; and the remaining 64 mil50,000 or more inhabitants, the
Ths acceleration in the rate of lion would be added to the popu-

Federal Government

"standard

as

county in which it is located and
such

adjoining counties

various
teria
In

economic

oriented

and

as

by

are

social

cri-

to

1900, about

the central city,
third of the popu-

a

lation

of

places

that would qualify as
metropolitan areas. Be-

the

tween

1900

nation

lived

in

of the

United

only

States increased

by

50%,

whereas that in
metropolitan areas

standard

pled. By 1950, 57%
tion

of

the

the
tri-

of the popula-

country,

85

some

million people, lived in 162 stand-

arc1

metropolian
trend

toward
of

increased

population

standard metropolitan

accelerating
half

of

politan
lation

is

areas

century,

an

the

73%

of

increase

the

of

total

the

popu-

nation.

In

the last decade of that

is

period, that
1950, the
metropolitan areas ab-

between

sorbed
of

the

the

1940

81%

of

nation.

present

that

total

the

growth

first half of

intercensal

decade—

is, between 1950 and

according

to
the

politan
total

estimates

The

growth

of

the

States.
trend

may be expected to
It will continue because

agglomerations

tion

the

absorbed 97% of the

areas

continue.

such

1955—
of

Census, the metro-

population

United

represent

producer and

society

our

and

the

In

Bureau of

the

of

popula-

most

efficient

units that

consumer

has

yet

devised.

The

very size,

density, and congestion

of

standard

our

metropolitan

to which some city planobject, are among o^r "mort
economic assets.
They

areas,
ners

Be-

way.

the totar population growth of the

metropolitan

standard

rings absorbed 61% of the total
metropolitan area growth. Between 1950 and 1955, the metro-

suburbia,

if observed trends
about 35 million will be

what now is exurbia and
interurbia—that is, the open coun-

t

a r

s

_

of

re-

be

added to incorporated areas in
suburbia. Thus, it is possible that
about two-thirds of the population

politan rings absorbed about 80% 0f the country will
total population growth
in metropolitan areas

be in standard

by

1980,

and

standard metropolitan areas. Con- that at least 60% of this popula¬
sequently, whereas in 1920 about tion will be suburbanites,
35% of the population in metroFinally
anv
reference
to
the
ban

by

ring,

19o0

the^suburin

suburban

habitants had increased to 42 h,
and by 1955 to 4/% of total metroPolitan area population.
There
the

are

two basic reasons for

decentralization

increased

of

population- within the standard
metropolitan
areas.
Since
they
will continue to operate in the
decades, it is well to set
them forth. The first, and more
fundamental reason, is to be found

gr^f our" mSolUa™
must

necessarily inciude
to

erence

„

b

the

in

shift

from

19th

to

20th

ref-

some

the emergent "meealoD-

Tremendous

growth

the

of

sarny involves the spilling of population
into
the
open
country
areas of our metropolitan
rings
jnt0

exurbia

and

interurbia.

means

that intermptronnlitan

fined.

The

coming

becqme

will

tocreasingly

coalescence

politan

areas

lopolis.

The

It

arpn

of

metro-

produces the
contours

mega-

of

such

Nineteenth emergent megalopolises or
"stripcentury technology was symbo- cities" are already in evidence
lized by the steam engine, the belt
Tn
Mnrfllo,ctarn
TT
c
*
*
and pulley, and the horsedrawn
U S A, an
vehicle. Nineteenth century techJTw ?S?
vt
*
^
nology created centripetal forces
Washington
D
C the
Middle
which produced dense population
™ashingtoia D C
1the Middle
agglomerations around the fac- t
,v? Chlcago
tory.
In contrast,
20th century f
aRs' ev<l!}
technology is symbolized by elecnan south
trie
power,
by the automotive
US met^°"
complex—the auto, the truck, and
*may c°£?eiv~
the
highway-and by the telephone. Twentieth century tech0S *
Is' ^.n
nology generates centrifugal alnnn]i_
forces, making possible greater
' LpnS
aZ

century

technology.

*"3dheastern

I*

rii?nn„?rl!l!

ir+°mT „Chlcai0
p.„„fY?
^
JL!YYngen*mfg~

aS

population
within
metropolitan
areas.
Or, perhaps a better way
our market system and
technology to state the effects of 20th cenical development which underlies
tury technology, is to say
that
a

of suburbia. It may also be
that of the 64 million added

In try,., unincorporated-p

areas.

precious

are

to

tween TS00 and 1950, metropoli- continue,
tan rings absorbed about 45% of added to

metro-

of the United States

areas

absorbed

in

During the first

one.

the

growth of suburban rings, rela- lation
tive to that of central cities, is noted
evident in still another

PoHlUan areas 1 ved „.

areas.
.

The

concentration

fast

the last decade of that period, be- metropolitan rings; and the
while the tween 1940 and 1950, metropolitan maining J29 million would

and

1950,
population of the country doubled,
that in the nonmetropolitan areas

standard

"expanded rural develop¬

ment

their

—

standard

Sending our food products abroad to assuage the
hunger of peoples in dire need is, of course, a procedure
that is full of humanitarian appeal, but as a solution for
our farm
problem it can hardly be assigned a place of first
rate
importance—certainly not as a part of a "permanent"
arrangement. As we have so often remarked, the "solu¬
tion" of the problem of world
poverty—whether it take
the form of hunger or not—is
only to be found in some¬
how making indigent peoples self
supporting. They must
in the long run be able and
willing to fill their own needs

agriculture

serious risk.

own

farm

But No Solution for Us

in

seek

overlook this essential for any great

goods

to limit its field.

remain

should

men

.

population manifestation of

r

F

L

° 1

™r^ento

ba"

™

bnil

A

tip

a,

the American level of
living—the

20th

highest

ever

possible larger agglomerations of

s,f
Lr? w^ri S
,;Lr' J;
Worth to San
to^io and Dallas through Hous*° Galveston also represent

man.

population than did 19th century
technology as efficient producer

Prospective megalopolises. Both
east an<* west Coasts of Flor-

mass

achieved

in

level

of living
history of

the

What is the prospect in
respect
of
future
metropolitan
area

growth?
is

Should

possible

standard

have

that

the

de-

^en'
by I980' Y
the
number of

metropolitan

increased

trends

to

areas

will

200,

and

over

and

.

technology

century

consumer

Our

makes

areas,

growth

as

a

result of

our

resurgent national growth on the
one

hand,

and

increasing

c

«

,,

may

have

similar

develop-

then ments, from Jacksonville down to

exPerie»cing explosive pop-

ulation

A

ida

units.

metropolitan

r

eco-

Fort M

J

down th

west coast
.

.

an^ from Jacksonville to Miam
oa

the east coast Similar develop-

Volume

190

Number

5900

The Commercial and Financial Chronicle

...

(2121)
,

.....

.

ments

also

may

parts

of the

in.'other

occur

country.\

It is too early even to try
anticipate
the. implications,
megalopolis for the economy

large,

or,

specifically,

more

to
of

at
for

requirements

C3TnZ
Ihe

investment

certain

is

,

and

•

,

to

.

be

bring
with
them
signiticant changes m the composition

of

United

have

the

population

States. Many of

important

•/u uS"" °

with

of

the

these will

economic

impli-

7° uan be.dealt

y

here; namely, changes

m age

J™re ar:d changes in house-

hold

formation.

v

these

headed

various

by

age

in

persons

differ

groups

present

generation

vthe

ls

States.
result

Formation

changing

the

er households will increase the
most rapidly percentagewise, they
Net
household will constitute a relatively small
course,
the net number numerically. Between

-formation.

formatj0h
effect

[s

Qf

of

new
households being
through marriage and the
breakup of the "large family"
system; and old households being

lormed

dissoived

through divorce death
and separation.
'
In

195Q

there

were

may

.

.

„.

therefore, almost double in
population in the 30-year period,
Most of the population increase
in our standard metropolitan areas

will

take
_

produced

great

swings

in

ness

cycle. The fluctuations in the

birth

rate,

tmuously
have

greatly

.

structure
the

accompanied

decreasing

.

of

by+con-

mortality,

altered

the

age

the:,population.

For

united
n

States

miiiion,

increased

twice

as

other' 10-year

any

by about

many

period

as

in

in

the

history" of the United States.

Net

household formation between 1947
/

year>,,

differences

in

the

of

rates

growth of various age classes.
Age Structure. For example, between

1900

and

1950,

P""

^

^°P+ia °n ?

ki

while

the
"AV-

country

+•

fo l7vt^°raci
19 years of atoe,

iiw
five

aee
age,

to

in
in-

<

.

„

...

._

__

citizens, Ahose
those

"

65
b5

years

~

~

and1ie980UtheUtotai
ruou, me xoiai nooul^tion
population
ana

for

quences

hmvpvpr

-up

a^much

bv

mav

136V

as

pendent

of
01

all

sectors

the

the household rather

on

than the individual

tries,

of

VJL

the home construe-

as

the

and,

automotive

indeed,

all

indusind.us-

in

1950

the

„

United

-

the

on

;

..

the
•

suburban

n.

_

1

_

1980, houseStates may

--

--

to go into what is

.

exurbia

now

interurbia—that is the open

.

—-

.

i

or

coun-

try> unincorporated parts of metrepolitan ..rings.By, 1980, it is
-x

industries

designed for household

crpvv,

7R

ir,

lone/

Net

ho»^hold

formation

Sp

jection,

thp

nf

will

nvpr

UY

iQfio

nnmilatinn

L,hipb

rdmntji

oihpv

^nn^^Lm^nrrp^phhv ^nmp
happen to the

Cbirth

rate between

and

now

■

^

io^n InH
IS vp!
11 Mh

will

increase

by from 71 to 74%.
extreme instance of the
way

an

which

structure

age

be

can

affected

by the fluctuating birth
rate, it is noteworthy that amidst
these

changes,
of age

years

main

at

about

the

over

next

course, : is

cohort

*

increase

tw

three-quarters

The- great

*

'

fluctuations

structure

the

in

of

the Donulation
will greatly influence the
rate of
net household formation

the

changing

United

structure

age

States

of

affected"

has

and will continue greatly to affect
new

household formation.

the

great

national

Despite
in

resurgence

total

population
growth,
household formation actually

net

decreased after 1950. The relatively
low rate of net household forma-

tioh was attributable, of course, to
the; decreased size of the cohort

reaching marriageable age,
fleeting, again, the low birth
of the depression '30s.
It is

re-

rate
pos-

sible the net household formation
remain

may

at

relatively low
levels, and may actually continue
to decrease until 1965.
By that
date, however, the greatly en-i

1

...1

_

/i

...

.

_

1—x

■"=-

formation may be anticipated.
' In
conclusion, the magnitude

character of population
changes ill prospect clearly point

and

^

to
re-

15

years!

This, of
relatively small

persons

born

mainly

during the depression.
By 1980, persons 65
and

over

9 to

11%

constitute

may

of the

from

population of the

U.

S., as compared with 8.2% in
1950, and 4.1% in 1900. Persons

under

20

may

44%

in

1980,

34%

in

1950,

Persons
to

64

47

to

years,

55%

and

most

from

range

34

compared

as

to

with

and 44% in 1900.
intermediate age, 20

of

1980,

1950,

it

is

make

may

of the

compared
52%

up

—

■

«

in

population
with 58% in

1900.

Perhaps

significant aspect of the

changing age structure lies in the
changing
dependency
ratio.
In
J950, there were 73 persons of dependent age—that is,

under 20

65 and over—for each

or

100 persons

of

possible

that

net

ing

the

continued

postwar

birth

household
levels

impact of

rate

were

under

20

years

old.

By 1980, if the high birth rate assumption holds, the total number
of dependents per 100
persons of
working age will have increased




tnis
this

increase of

30-year
au-year

from

58%

in their consumer
still

and

lies

marof this in-

ahead.
ahead,

Between

1980, househe-..
households in the

increase

The

may be expected
by from 38% to 52%.

postwar> cold-war climate

has produced

boom in marriage

a

rates and birth rates
about

rate

a

of

growth.

great

so

as

to bring

resurgence

in

the

national

population
Rapid increase in popu-

iation has been a major factor in
the
postwar level
of economic
activity.
Moreover,
the
altered
prospectt 111
in 1respect
C&jJUv
LU
vt t Ui<■ C jJUJk/
to Jfuture
U"™
popuUv

t

a*

.

v

_

^

iation

j

^

growth has created

a

nded

t0 80%;n,the..s,z?
°! ,lh,e
market.
Most of this

consumer

By
jn

birth

tinued

to

two

United

world

wars

declining mortality, the age
of

the

viencing great

is

0my

the

<n*eat depression and con-

structure

U1

of

rate

following

fetates

an<^ the

nation

change

is

cuiliruiltcu

expe-

The

with

confronted

1S

econ-

the
lue

Wllll

need
uccu

supply goods and services

nonulation

rapidly

at

in

one

different.

of great fluctuations

reason

the

growing

much

younger

'J* 1955"1958 levels of

increases in demand by reason of
the increased size of the market.
Without

question,

th,T

is,

persons,

20, and older persons, 65
are
increasing much
rapidly than persons of intermediate age.
While the popuover,

more

lation of

the

country

as

whole

a

increases

by from 54% to 80%,
population of senior citizens,

the

wlIUC
wt/
11 vl
V1
those
65 CI
and
over,
lij
is CI
almost
1111 v01/
cerc
rm_
tain to double.
The population of
school age is also likely to double,
although this is contingent on the
future and unpredictable course
of the bfrthrate!' During the same
v

4-^

course

^

of

the

•—

^

^

birth

^

between

rate

from

of

1

will

million

superi nposition

of

bilized cold-war

^ ^2"
economy, 111 re-

S01?u®

v5euU

1980.

The

also

*

: v

;

made

,

Bureau

of

/r*

the

our rapidly
growing population, and to assure
nat1?].
security,
in playing a
1

«

<

•

j

.

®*

of

Bng

has

house-

pur-

poses, because the nature of purchases of households with heads

under 25, and with heads 55 years
of age and over, respectively, is of
a
different
character
than
of
households with heads from 25 to
54 years of age.
Particularly is
this true for major purchases such
as

that represented by
By

reason

structure,
in

these

at

greatly

of the

a

residence,

changing

households

with

age

heads

varying ages will change
differing rates during

the 7 years from 1958 to 1965. For

example,

while all households in
the United States may increase
by
from 8% to 14% during this
pe-

riod,

households

der 25 years

with

of age

heads

un-

will increase

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

occur

younger

and

for households

older

heads,

tively, households with

with

respec-

heads

25

Protect Investment Values
The Government of Puerto Rico and all of

ment of interest and amortization of

its

cipal

municipalities and

have

a

revenue

authorities

flawless record of prompt

debt payment. Moreover,

public

Puerto Rico's

debt service requires only

4.5% of the

Commonwealth's current budget—a far

stronger position than is enjoyed by most
governments in the world today. Finally,
Puerto

Rico's

Constitution

makes

pay¬

GOVERNMENT
P. 0. Box 4591
San Juan, Puerto Rico

BANK

FOR

on

prin¬
the public debt the first charge on

the Commonwealth's

Those
serve

revenues.

three

practical safeguards de¬
consideration against the healthy

background of Puerto Rico's steadily ex¬
panding economy, in appraising the in¬
vestment values offered by the tax-free
bonds of Puerto Rico, its

municipalities

and its various Authorities.

DEVELOPMENT

PUERTO

*

.

RICO

Fiscal Agent for the Commonwealth of Puerto Rico

1duot/ a^
as well

B?nl;e„7„ Associa"on'

Mich., Nov. 5, 1959.

over

market

a

obligation to the nation

holds, between 1958 and 1965, by
age of head.
This is a significant
for

"I

economy, inves-

..

projections

-r

sf^}hcaAnt f?le in the exPanslon

of the American

net

Census

r

increased demand of

1.2 million per year between 1970
and 1975; between 1 million and
1.3 million per year between 1975
and

high-level

a

5® decades which lie ahead,
L„„ ?n
tmue to expand, both to meet the

reach

to

great

our

postwar ec-unuuiii;
economic expansion
expansion is
is iia
m

under
and

consump-

U°n> there will be tremendous

for

more

itsTxteemes-that

which

secdors of the population. Levels
?f consumption may be expected
continue to increase. But even

the

boom,

formation

working age, 20 to 64. Of these by from 36% to 67%. During this
dependents, 14 per 100 persons of same interval, households with
working age were 65 and over, heads 55
years of
59

1958

over

suburbs, only 40% in central cities.? to be found in the differences in

mation may. vary from 850,000 to
over a million per year.
Reflect-

from

total

the

and

differentiation

years of age

of

marriageable age.
Between
1970, net household for-

1965

constant number

/ the

of

25

likely to.

persons

are

a

Sectors

Moreover, most

crease

th^ne^^household fOTmationwlS 54%

:

of age, also relatively: little
affected
by
the
course
of
the
birth rate between 1950 and
1980,
years

1980.

household formation may drop to for great economic expansion in
about 643'000 Per year for the the coming decades.
In a little
_t?„more than one human generation,
sumPtions producing high projec- b etVeeV'Sso"1-'and 6198^"the

>

Finals, the population 20 to 64

all

~

#

1980, because everybody
increase because, by that date, the
/V1\ be 6o years of age by postwar babies will begin to
is already
born. t;
% reach

1980

an

72%

kets..

in-

__

A+

period,

to

in.

T

by

anticipate then,
men,

use.

.

IIIdY

million

'economy
geared
primarily
to
households as consumer units may

Producing consumer durable goods United States

more

Ul

o

and

and

Between

as a consumer to

should

or

the

;

and especially those clede-

economy,

creased somewhat between 1955
and *958 to a level of about
thp
hip-h
nnnniatinn
nrnipptinnc
999'099 Per year- Projectiops of
hold*
nerhans
hv
not
the BVreau of the 9er?sus' b<3wthan' 51 °J S thp hirth ratp chonid ever' indicate that it is possible
decline as assumed in the low pop
lhat ^u.rtbe,r ■ decreases in net
oint/nn trnipMfpp Pprcnpc ^ household formation may occur
hl^h fphooi ptp fhaf ler °,n fq- between 1960 and 1965* Under aswary
nf
Irnav iilUIccib"
in^'rpasp hv gumptions
producing
a low proy ^cti
inntihri
ii
ic
nnccihlo
iiioi
ruif
nf

vpfli-

crease

by

in

ii.

will

average

800,000 per year. Such a decrease
had, of course, significant conse-

nrL nn™,Un?in7„nrZ

BO*

40

market

,

•

un|t? such
our tion
ti0n and

creased^
by only 40%, while
senior

in

almost

1980

of
deathrates

great

As

place

i.i.

and

interplay

and

l"i

tbe household
°ther, ,
holds

,,

-

1950

age

•

v

business as indicated in the dif- almost triple—while central cities of at least 12 years, the present
ferences in rates of growth-on the increase by 30%. Most of the in- duration of the baby
boom, relaone hand, and the actual size of crease in suburban rings is likely tively high rates of net
household

and 1950 averagec( over 1,5 million
per

tech-

will,

^

have

continued

tration of population in a relatively
small
number
of
great
standard metropolitan areas.
By
1980, it is possible that two-thirds

_

.

*•

The
of

1958 and 1965, households with or more of the total population
heads under 25 years of age may will be resident in some 200
increase by from 900,000 to 1.6 standard metropolitan areas: By
million, while households with 1980, metropolitan areas may conheads 55 years of age and over tain 165 million persons.
They

43.6

some

a

nological development, it may be
It should also be pointed
out/ anticipated that we shall continue
however, that although the young- to experience increased concen-

age structure of the popis the rate of net house-

ulation

hold

by

By 1980,

facilities
must
be
increased to provide goods and services for an increment or from 32%
to 57% in the population of the
As

affected

1

present

United

Household

■

.

1980.

years.

•

fertility, with troughs and peaks
paralleling the swings of .the busi-

and

ferentially affected in the coming

increase by from 2.5 million
to 33 million.
Households with
?£;
i?ne
111
'
history
of.
man
miiii0n households in the United heads 25 to 54 years of age will,
that has experienced two world
gtates. Between
1946
and
1956
during the same 7-year period,
wars
and- a
major
depression.
under t^e impact of demobiliza- increase by from
Tnocn
800,000 to 2.2
noteof^ArvViir*
nxronfe.
Vifiiro
A
...

The

between 1958

whom would be older
dependents,
and 52, younger ones.

Significantly

■

,

increase lies ahead, in the period

requirements for goods
services, varying sectors of
the economy will obviously be dif-

their

and

:

,

in

the

wilt

rate

assumed in the

■.

lowest of the census projections,
dependents per 100 persons of
working age would be 68, 16 of

...

great changes m total pop-

ulation

birth

-

•

i

households

the
as

29

•'

dependents.
If
should decline,

investment purposes. But
that it will evoke new dimensions
need

'

•

to 54 years of age will increase
by
only 3% to 7%. To the extent that

general

of economic

'

•

.

to 95: Of these, only 16 would be
older dependents and 79 younger

37 Wall Street
-.

New York 5, N. Y.

SO

(2122)

The Commercial and Financial Chronicle

North'n Properties
Com. Stk. Offered

-.

gain of 892,000,000 kwh.? or 7.2%-above that of the'comparable
1958 week.

work

Candee

Co.

&

and Peters,

Writer
& Christensen, Inc. on Nov.
18
puhlicly offered 150,000 shares of
common
stock
(par
$2.50)
of
Northern Properties, Inc. common
stock at $5 per share. This offer¬
ing was oversubscribed and the
books

closed.

The

proceeds to the company
this offering will be $602,284.50, $170,000 will be applied to
the cash required to close title to
the Baldwin Property.
An addi¬
tional $50,574.70 will be applied
to meet mortgage installments of
principal and $29,693.42 will be
applied to interest during the first
year of operations ending July 31,
1960. The company may also util¬
ize the
proceeds of the sale of
from

the shares offered to pay

charges,

carrying
taxes for its

including

various properties,;
The
company
expects

aside

the

•>.%
to
set

.

Although most steel users are hurting badly for want of
steel, they prefer to share the losses with the steel producers to
effect a noninflationary settlement and to stop featherbedding
and makework practices.
Typical comment from steel users: "The producers are fighting
our battle too.
Actually, we have more to lose through an infla¬
tionary settlement than have the steelmakers. They
along increased costs through higher prices. We can't."
The magazine points out that this is

proceeds
(approximately $342,817) as op¬
erating capital for the purposes
of the development of its proper¬
ties.
company
was
the laws of New

under

organized
York

the front of the line for steel shipments. In spite of the
steelmakers hope to treat all customers fairly.
Steel ingot operations last week hit an estimated 40%
of
capacity, up 27 points. Production was about 1,133,000 ingot tons.
With

have

10

menced

cents)

Nov.

on

12

all-rail

and

ore

ore

lake

shipping and the aid of

shipments, the steel industry expects
supplies forr .pear capacity operations no

was

com¬

by Robert L.

"Steel"

ore stocks through April would total
consumption would eat up 59 million tons,
18 million ton cushion.

leaving

an

More scrap will be used in the open hearths to stretch out iron
stocks.

pected

Although

to

price

cause

Losses

mills

is in good supply, rising demand is
hikes.
%%

scrap

to the nation because of the

still

mounting
furnaces, "Steel" said.
are

the

though

even

ex¬

net

days of the strike, steelworkers lost $1,172,500,000
Steel companies lost $3,493,000,000 in sales. Some 32.7

wages.

tons

of

ingots

lost.

were

Overhead,

depreciation,

and

Losses to metalworking companies and employees are con¬
tinuing. An estimated 450,000 metalworkers are laid off as of
today. Even more are working short weeks. Layoffs may peak
at around

for general

The

corporate purposes.

Realsite, Inc.,

incorporated

was

under the Laws of the State of New

York

on April 23,
1956. Its prin¬
cipal executive offices are located

at 138-16—161st

Ave., Jamaica 35,

New York.

As
of
July 5, 1959, Realsite,
through its wholly-owned subsidi¬
aries, had acquired interests in
approximately 320 acres of real
property in the States of Florida
and New York, and had entered
into

contracts

of undivided

ditional

for

are

in

The

210

located in Broward

and Dade Counties in Florida and
in Nassau County, New York.

American

The strike in

via

a

court

A

production)
the

actual

class

A

cents)

stock

common

of

Acme

Missile

of

(par

25

&

Con¬

struction Corp. was made
publicly,
at $6
per share
on
Nov. 12 by

Myron

A. Lomasney

& Co.

offering

was oversubscribed
the books closed.

The

proceeds

are

to

be

This
and

income,

Federal

after

provision

for

income

taxes, was $63,571.
Net
billings for the six
months ended July 31, 1959 were
$572,527
and net income,
after

provision for Federal income
taxes, totaled $116,946.
Giving effect to the offering,
capitalization of the company on
.

Oct.
class

6, 1959
A

was:

common

210,000 shares of
stock

outstand¬

ing, and 220,000 shares of class B
common

stock

outstanding.

Richard A. Morris has opened of¬

announced

7

27,490

were

estimated
loaded

strike.

estimates the cumulative loss is

the

in

Based

current

week

approximately 2.650,000

now

4.7%

155,000
if

week-to-week

these

on

cars, or

about

that

cars.

From 1958 Week

Intercity truck tonnage in the week ended Nov. 7. -was virtu¬
ally even with that of trie corresponding week of 1958, the Ameri¬
can
Trucking Associations, Inc., announced. Truck tonnage was
0.1%

ahead

of tonnage: a year ago

and 4.6%,

below the previous

week of this year.
These

politan

findings

are based on the weekly survey of 34 metro¬
conducted by the ATA Research Department. The

areas

report reflects tonnage handled af over 400 truck terminals
common ^carriers of general freight throughout the
country.
1

'*»>•,»r..-

"•!

■':>{

Lumber
Lumber

week ended Nov.

mills

were

amounted

current

463

below
to

and

mills

•<:>•

of

«-'*

.

In the

of

were

week

same

production.

34%

reporting to the National
below production for the

6.6%

were

7, 1959.

9.8%

rate,

of

Barometer

mills

Pit;!

ii.

>

: >

Shipments 4.1% Below 1958 Week

shipments

Trade

stocks.

gross

orders of these

new

Unfilled orders

of reporting

reporting softwood

For

equivalent to 16 days' production at tne
were equivalent to 42 days' pro¬

stocks

gross

duction.
the

0.2%

were

year-to-date, shipments of reporting identical mills
production; new orders were 0.7% below pro¬

above

duction.

Compared with the previous week ended Oct. 31, 1959 pro¬
reporting mills was 0.1% above; shipments were 1.5%
below; new orders were 0.4% below. Compared with the corre¬
duction of

sponding week in
below; shipments

1958, production of reporting mills was 0.8%
4.1% below; ; and new orders were 2.5%

were

above.

"

industry which began July 15
Nov. 7.]

Business Failures Up
Commercial
ended Nov.

remained

that

the

was

ended

on

the operating rate (based on 1947-49 weekly
*23.1% and production 371,000 tons.: A year ago

ago

was

weekly

from

12

Moderately in Nov. 12 Week

industrial

and

265

failures

in the

in .the

285

to

rose

week

preceding week, reported Dun &

below

businesses
when 308

the

toll

failed' than

of

in

306

the

in

1957.

Seven

comparaole

week

cent fewer
1939

per

of

prewar

occurred.

Casualties

involving liabilities of. $5,000

increased to
corresponding week
Among small failures, those under $5,000. there was a
dip to 38 from 39 in the previous Week and a marked drop from
the 51 of this size a. year ago. Twenty-five of the failing concerns
247

from

of

226

week

a

earlier

and

223

in

or more

the

1958.

had liabilities in excess of $100,000 as against 28 in the preceding
week.
•

production

was

placed

at

2,000,000

tons,

or

*Index of production is based

U.

on

average

weekly production

S. auto

makers

suffered

reporting agency

counted for

facturers.

through another steel-short work

said

the

drop-off in volume was ac¬
by the final collapse of General Motors
leveling off in production by most other manu¬

By

a

the end

being produced

the week under review, the only GM
the Chevrolet .Corvette which mounts a

of

was

fibre glass body.
"Ward's"

143

principally

from

and

127.

for

the

Meanwhile,

commercial

week's upturn—its
wholesaling failures

service to

from

26

25.

A

contrasting dip brought casualties among manufacturers down to
39 from 41.
There was no change in the construction toll which
held at 43.
Mortality ran slightly above last year's level in all
lines except manufacturing.
.

Geographically, the rise in failures during the week was con¬
centrated in three regions: the East North Central States, up to
55 from 40, the South Atlantic, up to 39 from 18, and the West
South Central, up to 25 from 11. The other six regions reported

that. Ford

Motor

Co.

increased

production

company operated its Falcon plants at Lorain. Ohio, and
Kansas City, Mo., on a
five-day basis and the Lincoln-Thunderbird
plant at Wixom, Mich., worked through Saturday Nov. 14.
All Chrysler Corp. plants continued to
operate on a four-day
basis with the exception of St. Louis which ran five
days through

The

big Rambler works at Kenosha, Wis., re¬
turned to a five-day program after six
straight weeks of Saturday
car-assembly.
"Ward's" said thus
out about

125,000

in November the industry has turned
that barring severe production cutbacks

far

cars and

the total should
approach 250,000 at the end of the
below the pre-steel strike estimate of
636,000 units.

Failures Continue Up in September
{failures, continuing counter to their usual seasonal
downturn, edged up to 1,144 in September. The highest since June,
casualties exceeded by 10% the toll a year ago, and in fact, reached
a 26-year peak for the month
of September. However, their rate
in relation to the

Concerns

production estimate of 62,573
47% under turnout for the same week last year
(117,688)
but noted that car-truck
production to date (5,990,474) is 46%
ahead of comparable 1958

Wholesale Food Price Index Down

Institute.

distributed by the electric light
industry for the week ended Saturday, Nov. 14, was
13,270,000,000 kwh., according to the Edison Electric
Output increased by 251,000,000 kwh. above that of

previous

week's

total

of

13,019,000,000

kwh.

and

19,000 in

Fractionally

in

the

$5.94

a

latest

week.

week

parable date

a

On

earlier.
year

It

Nov.
was

10,

it

7.4%

declined
below

0.5%

the

to $5.91

$6.38

of

the

from
com¬

ago.

Higher in wholesale cost this week were wheat.
n, oats,
hams, milk, coffee, and eggs. Lower were flour, rye, bellies, lard,
cottonseed oil, cocoa, raisins, steers, and hogs.
The Index represents the sum total of the price per pound of
foodstuffs and meats in general use.
It is not i cost-of

raw

living index.

Its

chief function is to

show

the

general trend of

food prices at the wholesale level,

Wholesale Commodity Price Index

Up Moderately in Latest Week

Electric Output 7.2% Above 1958 Week
The amount of electric
energy

the

per

Following three consecutive weekly increases, the Wholesale
Food Price, compiled by Dun &
Bradstreet, Inc., dipped fractionally

(4,112,375).

ties business.

operating business population remained relatively
failing at an annual rate of 58 per 19.000 listed

were

enterprises; this compared with a prewar toll of 70
1939 and a depression level of 155 in 1932.

31

"Ward's" said the latest week's

power

in

Business

month—60%

cars was

estimated at

toll

the Pacific States dipped to 61 from 64,
Year-to-year trends
mixed, with five regions suffering heavier casualties and four
having lower tolls.

The

Friday, Nov. 13.

The

were

low.

added

car plants to four days
during the week
hopes that steel supplies would be renewed in a few weeks.

and

to

and fell in the Middle Atlantic to 73 from 91.

in most part

car-building and

in

accounted

climbed

declines.

Plagued by Steel Shortage

period in the week ended Nov. 14, but managed to hold the pro¬
duction decline to about 1,100 units below
previous week, "Ward's
Automotive Reports" said.

car

Retailing
toll

edged to 34> from 29

,

Street, New
Yprk City, to engage in a securi¬




Institute

1947-49.

Richard Morris Opens
fices at 42 East 52nd

been

steel

no

is

Bradstreet, Inc. At the highest level in ten weeks, casualties
moderately the 274 in the similar week last year but

schedules at most Ford
used

for
general corporate purposes,
including expansion.
For the year ended Jan.
31, 1959
net^i billings totaled $478,591 and
net

Steel

and

Auto Makers Still

shares

It

have

exceeded

78.9% of Capacity

124.5%.

The

offering of 200,000

the steel

injunction

month

Acme Missile &

An

Iron

on

output for the week beginning Nov. 9 was equal to
45.6% of the utilization of the Jan. 1, 1959 annual capacity of 147,633,670 net tons. Estimated percentage for this week's forecast
is 78.9%.

for

Construction Corp.
Stock All Sold

been

Nov.

week.

Actual

ad¬

company's

Output Based

operating rate of the steel companies will average *139.0% of steel
capacity for the week beginning Nov. 16, equivalent to 2,233,000
tons of ingot and steel castings (based on
average weekly produc¬
tion of 1947-49) as compared with an actual rate of
80.4% of
capacity and 1,291,000 tons a week ago. In week beginning Nov. 2,
output was 368,000 tons and operating a-ate *22.9%. [ED. NOTE:

acquisition

interests

acres.

properties

the

week, of

500,000 and hold there until mid-December.

Steel

will be used

proceeds

had

For

115

books closed.
The

the

would

mills, unfilled orders

nonoperation of the steel
have started their

mills

tailed for lack of steel begin to step up their production.

the

and

there

in

preceding
cars

that

ing

oversubscribed

the

Lumber

predicted

Resumption of steelmaking will aggravate the tight copper
supply situation. An even greater scramble for the red metal is
predicted as some users whose operations were shut down or cur¬

was

Loadings
below

additional

through next spring.

Godfrey, Ham¬
ilton, Magnus & Co., Inc., at a
price of $3 per share. This offer¬

Ferman & Co. and

17.0%

77 million tons and that

salaries of nonproduction workers in steel cost the companies $672
million. The U. S. lost $755 million in taxes.

offering of 200,000 shares of
Realsite, Inc. class A common
(par

weatherwise for

adequate iron

million

An

stock

break

a

imported
to

In

Realsite, Inc.

was a decrease of 97,784 cars or
14.9% below the
week in 1958, and a decrease of 114,921 cars or
below the corresponding week in 1957.

corresponding

attitude for steel

to get to

in

Stock All Sold

This

nounced.

Intercity Truck Tonnage Shows Little Change

pressures,

on

April 7, 1959 to engage in subur¬
ban real estate development.

freight for the week ended Nov. 7, 1959
the Association of American Railroads an¬

revenue
cars;

,

ore

The

new

560.658

pass

In past strikes, users often have been more interested
obtaining steel than in the terms of the wage settlement.
Consumers, nevertheless, are converging on the mills trying

in

showed

a

-

f

Loadings Down 14.9% from 1958 Week

Loadings of
totaled

M

users.

of

balance

a

can

y

Car

Continued

from page 5
1
■
! ' *"■
T '%
rules, "Steel," the metalworking weekly, said on Nov. 16.
A survey by the magazine reveals that nine of ten metalwork- ing companies want the steelmakers to hold the line in their
negotiations with the union.
(

Thursday, Nover.cer 19, 1959

..

.

Reflecting price increases on some grains, flour, buttar, cotton,
and rubber, the general commodity price level advanced moder¬
ately in the latest week. The Daily Wholesale Commodity Price
Index, compiled by Dun & Bradstreet, Inc., stood at 286.(193032—1.00) on Nov. 16, compared with 279.11 a week earlier, and
276.81

on

the

corresponding date

a

year

ago.

The commodities

.

-hit

I*

■?

*

Volume

190

Number 5900

.

.

The Commercial and Financial Chronicle

.

(2123)
.»V'k

moving;, higher in wholesale
steers, Jambs, and hides.

cost

*

offset

declines, in

sugar,

"'

There

was

were

hogs,

New

:

limited.

ment?

trading

and

.

November crop

528,5OG_O0i>
for export;

was

,

industrial

to

There

prices and trading

cocoa

and

week.

ah; appreciable

was

decrease

in

substantially lower.

was

csttle

of

consistent growth

a

fire-casualty
bull

over

stocks have
equities,

for

market

the past decade (or, if the

issues.

common

.:

-

.

unsatisfactory showings in underwriting have been due in
to

three

unrealistic

causes:

rates

inflicted

the

on

com¬

panies by the various state supervisory authorities; outrageous
jury verdicts in so many cases involving automobile and compen¬

-steady, but purchases slipped holding
prices below the prior week.
Although lamb receipts- expanded
noticeably, trading was slow and prices dipped moderately.

sation

Cottar*, future -prices on the New York Cotton Exchange fin¬

law

But

suits; repair costs

let

how,

see

us

where

automobiles

growth,

equity

on

concerned.

are

the insurance

stock

fair

span,

ished the week moderately

investor

tor the week ended last

because, it must be remembered, fire-casualty insurance under¬
writing results are based more-or-less on a cycle of that duration,

higher. United States exports of cotton
Tuesday came to about 55,000 bales, com¬
pared with 47,000 a week earlier and 64,000 in the corresponding
period a year ago. For the current season through Nov. 10, cotton
exports amounted to about 576,000 bales, compared with 685,000
in the similar period last season.
-

decade

Buying Exceeds Year Ago

Although rainy weather over the week-end cut gains in some
Eastern cities, sales promotions and good volume on Veteran's
Day
helped over-all retail trade climb moderately over a year ago in
the

week

ended

oyer

a

then

ago.

related

the

a

The most

year ago.

a return of the Sept. 30,
1959, price
the gain of the past ten calendar years.

liability

Aetna

Bankers &

appre¬

a

year

ago

in sales cf television sets, lighting fixtures, and

laundry equipment.
sets and upholstered chairs
appreciably over the similar
marked gains in purchases of linens and

in

were

rise

this

in

week

most

sellers
wear.

wholesale

for

the

Christmas

selling

what.,

season.

A

The

buying

interested- in

of furniture at wholesale
well over that of a year
outdoor

metal

tables

matched
ago;

that

buyers

and,.chairs,

of

the

-

bedroom

goods, and occasional lines. Shortages began to appear among
wholesalers of appliances as production was cut
by steel shortages,
orders

television
The

close

remained
sets,

to

the

prior

week;

refrigerators, and automatic

call for floor coverings, linens,

and

best-sellers

washers

and

high level exceeding that of both the prior week and a year ago.
a marked rise in purchases of
gifts, glassware, and china.

There was

Hampshire

Federal

Reserve

increased

above

week, for Oct. 31,
weeks

a

over

to

country-wide basis

a

Index

for

like period

7%

the

increase

was

week

last year.

increase of 7%
a

the

was

was

as

taken from

ended

In the

reported.

Reserve

the

like period last year.

increase

was
a

was

shown.

reported

Nov.

7,

increase.




1958

102.06

123.66

14.2

88.16

49.64

69.09

7.1

_____

Insurance
Insurance

Paul

period,

Jan.

Nov.

1

to

7

a

6%

Nov.

7

The

initial

350,000,000 cubic feet

cost

of

through. Lehman Brothers
Lynch, and $28,000,-

000 in bank loans.

$103,000,000
bonds

due

Jack Kirsch Opens
ROCK AW AY,

Dickens Avenue.

151.34

78.45

104.18

6.9

6.31

5.23

35.8

6.9

192.81

140.02

161.41

10.6

41.85

24.39

31.91

13.1

28.55
79.61

58.51

Fidelity & Deposit—.—
Massachusetts Bonding
Seaboard Surety
U. S. Fidelity & Guarantee

62.34

47.52
41.87
91.77

General

84.80

_

Casualty

____

12.49

from

course, may

some

find

that

better

the

better

Bulletin

number

of

of

a

modest

few institutional accounts
are

18.5

18.4

29.98

46.62

10.0

11.39
25.63
55.17

25.39

12.5

Members New York Stock Exchange

33.88

11.3

Members American Stock

71.26

4.9

37.34

50.59

17.1

of years; and again

the

that

ones

Lajrd.Bissell 8 Meeds

Y.

Telephone: BArclay 7-3500

1-1248-49

Teletype NY

Specialists in Bank Stocks

we

the

show

fire-casualty

insurance

stocks

The insurance stock market has the

GRINDLAYS

AND

there

seem

to

be

a

Amalffamating National Bank of India
and Grindlays Bank Ltd.
Head

t6

just getting their feet

a

little wet.

Ltd.

Office:

BISHOPSGATE, LONDON, E.C.S:

that recognize some of the good values
are

Exchange

UO BROADWAY, NEW YORK 5, N.

BANK LIMITED

the

buying turn, and

present, and that

Request

on

11.10
•

NATIONAL
fair

S.—A

BANKS

CITY

gains to the shareholder.

doing better pricewise.

that

are

13-25'^

68.67

3.31

in any period

grade .issues

at

YORK

NEW

8.8

be argued that it is not worth while getting

of these stocks

a

Quarterly Earnings
Comparison

34.2
;

Y. —Jack
securities ;

N.
in

offices

business

6.3

31.79

in

6,000,000 shares of common stock.

7.3

v

due

debentures

1969; $28,000,000 in bank loans and

50.63

2.31

London

,

Branches

54 PARLIAMENT

STREET, S.W.1

13 ST. JAMES'S

SQUARE, S.W.1

Trustee Depts.: 13 St. James's Sq.; Govt.
Rd.,
Nairobi; Ins. Dept.: 54 Parliament

I. M. Simon Adds

Joins Straus, Blosser

ST.

LOUIS,

Springer,
the

staff

Jr.
of

Mo.

has
I.

M.

—

.

Wallace

been

added

Simon

&

F.
to

Co.,

has

Blosser &

315 North Fourth Street, members

Salle

Midwest

New

of

the

Stock

New

York

Exchanges.

and

joined

—

the

come

Tax

of

Depts.:
13 St.

Paul L. Skurie

staff

James's Sq.; In¬
Parliament St. A

St.; Travel Dept.: 13 St.

(Special to The Financial Chronicle)

CHICAGO, 111.

Straus,

tanker*

to

54

James's

Sq.

the Government in:

UGANDA,

ZANZIBAR

&

ADEN, KENYA,

SOMALILAND

PROTECTORATE

McDowell, 39 South La

Branches

in:

CNDIA. PAKISTAN. CEYLON. BURMA,

Street,
York

Exchanges.

members

and

Midwest

of

-

of
first
mortgage
1980; $40,000,000; of

83.31

40.78

It, of

in

subordinated

Kirsch is engaging

23.67

>

Upon completion of the financ¬
ing, capitalization will consist of

7.8

29.98

•

Merrill

54.16

54.84

back

$62,000,000.

offering is part of the $194,498,000 needed to bring the line
into its initial operation. The company has also arranged for private
placement of $103,000,000 of 5
first mortgage bonds due Dec. 1,

45.16

8.0

at-,

The

66.29

21.9

set

day. This

a

640,000,000 cubic
through the construction df :
compressor stations at

FAR

45.86

Reinsurance

a

delivery /
is

be raised to

can

6.2

56.12

~

County,

maximum

65.89

__

Pecos

California

Southern

to

37.62

Fire

Casualty

in

from 105%
in 1960 to 100% in 1969, and. ac¬
crued interest. After Oct. 1, 1961,
the debentures may be paid at the
option of the company in. 5V2 %
cumulative preferred stock.

For the four

department store

field

10.6

(Special to The Financial Chronicle)

System

Puckett

67.48

24.88

'

Texas.

36.59

16.79

will

the Panhandle field, and the other1
running southeast 252 miles to the

21.19

39.78

network

and two twenty-fourmajor
lateral
lines
from
Roswell, one extending northeast
298 miles to Canadian, Texas* in

48.70

83.84

,

inch

66.85

35.74

?

miles

670

68.99

Fire

States

The

94.61

36.97"

de-

shares

a

103.49

River

,

able at prices ranging

preceding

In the preceding week Oct. 31 an

the

177.33

47.72

registered and for Jan. 1

For the four weeks ended

over

8.4

.

thirty-inch line from
Roswell, N. M., to the ArizonaCalifornia border, a distance of

Bell

noted.

Federal

6.1

46.79

United

are

New York City for the week ended Nov. 7 increased
2%

8% increase

showed

the

7% increase

According
sales in

Board's

an

ended Nov. 7

to Nov. 7

on

61.86

30.97

—

Insurance

appearance

Department store sales

47.96

Security Insurance

Nationwide Department Store Sales Up 5% for

the

76.94

11.9

P.

Nov. 7 Week

7.5

13.2

were

a

10.3

100.51

dryers.

draperies remained at

54.37
39.44

73.95

__

sets,

40.19

29.34

101.41

American Surety

were most

77.30
57.30

82.42

Fire

American Re-insurance

case

but

Fund

Continental

was

20.2

75.46

Aetna

apparel at wholesale.

prior week and

29.59

Westchester

while the call for suits and furnishings lagged some¬
marked
rise occurred in purchases by boys' Spring

preciably

6.0

22.02

116.67

St.

Bookings
sweaters moved up ap¬

in men's Spring slacks, sports coats, and

7.9

81.92

Providence Washington
Reliance Insurance

in women's clothing were Spring coats, suits, and
sports¬
Some fill-in buying of Winter merchandise was
reported as

prepared

39.71

67.22

166.04

North

early orders for men's, women's and children's Spring
and appreciable gains over last year occurred.
Best¬

retailers

25.10

National

Pacific

markets in

apparel

55.62

83.35

Insurance Co. of No. Amer.

Phoenix

noticeable

a

6.8

Falls

Northern

draperies, but interest in floor covering remained at similar 1958
was

6.0
8.8

80.33

40.76

New

rise

levels.

There

45.27
29.74

62.45

National Union

bedroom

volume

30.06
20.45

one..$100

The debentures will be redeem-

9.1

33.02

Insurance

___________

(Years)

68.36

Home Insurance

-

Curr. Price

to

102.84

Boston Insurance

Fire

Appliance dealers reported substantial gains from

$70.94

Shippers.

Hartford

*

-

$46.69

Great American

rose

.

$118.60

Continental
Fireman's

somewhat
girls' sweaters and skirts and

were

Stockholder

Agricultural

Insurance

a year ago;-best-sellers
boys' slacks and jackets.

Increase

American Insurance.

-

Hanover

from

Ten-Year

Value

Insurance

lagged

clothing

Liquidating

r

of¬

will be delivered tor
Lighting Gas at ttilei Cal-'f

border.

consist of

and

Ann. Avg-. to

Gain

1969

Trans--,

were

gas

ifornia

1980,

Dec. 31,1958

,

Glens

children's

income tax
Ratio of

:

Increased-buying of men's topcoats .and suits boosted total sales
of men's apparel slightly over last
year; interest in furnishings

There

Adjust¬
offerings, on the

7

Federal Insurance

in

of each

unrealized equities.

on

ciable year-to-year gains occurred in Winter coats and
suits, and
more-moderate increases prevailed in sportswear and dresses.

Volume

The

required

on

of

1,

of

benture .ahd. five common
at $153.75 a unit.

additional

to obtain

Nov.

on

shares

securities

units

in

feet

While volume in women's apparel remained close to the
prior
week it moderately exceeded that of

1958 week.

rates and another
recorded in the

No adjustment has been made for contingent federal

from the comparable 1958 levels by the following per¬
centages: East North Central and West South Central +4 to -f8;
West North Central and Mountain -(-3 to
-f'7; South Atlantic and
Pacific Coast +2 to -f 6; East South Central' +1 to
+5; Middle
Atlantic 0 to -f4; New England —1 to -f-3.

increases

a

the cash dividends paid in the period. We
annual average gain to the current price

varied

Year-to-year

as

The

(we have used Sept. 30, 1959, which was about the time this work
set up) to give us the number of
years that it would be

2 to 6% higher than a year ago, according to spot
estimates collected by Dun & Bradstreet, Inc. Regional estimates

helped total furniture

decade

a

due

2,000,000-

was

was

somewhat.

taken

assumption that rights were in all cases exercised. No effect has
been given to the acquisition of life
departments, as some of these
have been absorbed as existing companies, and some have merely
been new departments set up.
We have used consolidated data.

The total dollar volume of retail trade in the week ended this

Wednesday

have added

we

stock, based

this

year

have

We

ments have been made for stock dividends; rights

Wednesday. Retailers reported the most
noticeable gains in apparel,
appliances, furniture, and draperies.
Scattered reports indicate that sales of new passenger cars
slipped
fractionally from the high level of the ppor week, but remained

sharply

out.

with about five years of their trying to
get better
five years of "enjoying" them.
To the change

have

Consumer

has made

and

debentures
and

Pacific

main

by

Merrill
Lynch,,
Pierce, Fenner & Smith Inc. The;
offering consisted of $61,500,000 of
$40,000,000 of 5% subordinated

industrywisey have been quite

The

of 191
Lehman

group

headed

was

•However, the general, pattern of the insurance stock trend has
disappointed the majority of holders of them. This, of course, hgs
been due to the poor earnings results in the
past several years,
that is, earnings results from underwriting
operations.
These,

the

remained

houses

Brothers

fered

poor,

,

underwriting

western.

.

Hog" receipts in Chicago fell somewhat'from a week earlier
trading slackened; hog prices were down moderately." Sup¬

plies

the

Current

whereas the outcome of in¬
vestment activities by these companies has been
beyond any com¬
plaint.
'V'"'
''
:

Bcih trading and prices

preceding

the

moderate decline,, ni-fiigar prices as
on coffee remained close

a

the

chooses, a longer period) in the so-called gain to the
It, of course, would be a mistake to say that insur¬
equities have not participated at all in the general uptrend in
stocks, for some of them have done better than, let us say, some

'

reported

in

the fact that,
participated much

j

offering

Nov. 17.

on

The

ance

.

.Wholesalers

pricewise,

not

Stocks

stockholder.

purchase^ by Indonesia-and Pakistan, and negotiations
pending for exports to Peru.
:

trading lagged.

Insurance

—

investor

rice were,
were

Week

Despite

there has been

Although the buying of flour was scattered during the week,',
prices edged up .fractionally from a week earlier; Except for in¬
quiries from Pakistan, the export market for flour was slow.
Steady domestic buying-and increased purchases for export held
rice prices, at prior week-levels 'this week.- Sizable
quantities of
■

made

This

report estimating the

public

of $40,000,000
of debentures and 2,000,000 common shares of Transwestern
Pipe- "
line
Co. of Houston,
Tex., was-:

corn

1959 yield at about
only 1,500,000 bushels from October.
rise in inquiries for the buying of-soybeans
■<
; ;» . f-.//- •• •
\

a

A

a

bushels, "down

HoWever, there

WALLACE

ARTHUR B.

.

.

by Pipeline".
*

prices resulting- from*
slight reduction in supplies.
After
climbing, to-high levels early in the week, soybean prices declined
at *che era of the
period. The dip was attributed to the govern¬
active

more

Capital:

Raised,
BY

In contrast, there was a

trading lagged.

as

fractional increase in

a

3lub

"

Stimulated by prospects of good export
business, prices on
wheat and oats moved up
fractionally. Wheat supplies were light
and domestic trading expanded somewhat. Oats transactions were

steady and salable ..supplies
fractional dip in rye prices

*. \ V

the

Stock

TANGANYIKA,

ZANZIBAR,

KENYA,

UGANDA,

SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA
ADEN,

32

,

Avenue, Youngstown, Ohio.
Underwriter —
Strathmore Securities, Inc., 605 Park Building, Pitts¬
burgh 22, Pa. This offering is. expected to be refiled.
Dynamics International Corp.
(12/15)
(letter of notification) 100,000 shares of com¬

Alaska Consolidated Oil

filed

17

&

weeks.

Ltd.

American
25

Syndicate,

Office

and

for

corporate

Life

time
•

1301

company's products, with the unsubscribed shares to be
to the public.
Price—$1 per share. Proceeds—
To

capital.

Border

for

V

'*

Steel

Rolling Mills, Inc.
Sept. 14 filed $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50 par), to be offered in
units of $50 principal amount of debentures and five

—

is President.

shares

of

stock.

Price

To be supplied by
purchase of land and
construction thereon, and for the manufacture and in¬
stallation of necessary equipment., Office—1609 Texas
Street, El Paso, Texas. Under writers—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
common

Proceeds—For

amendment.

Harrison

M.

dealerships, increase inventories, and
advertising and increase working
Office—10232 South Kedzie Ave., Chicago, 111.
new

funds

Underwriter—None.

Underwriter

L, Cisco, Texas.

establish

provide

Grazing & Pastoral Co., Ltd.

Avenue

Inc.

filocl 400,000 shares
of common stock, to be
initially to independent dealers who handle the

offered

—

the

'

Texas.

after Nov. 25.

Baldwin

•

Co.

Baldwin

each

for

-

General

share.

•

:

Steel

Rolling Mills, Inc.
Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record
Aug. 31,
1959, on the basis of 49 new shares for each share then
held. Price-—To be supplied by amendment. Proceeds—
For- general
corporate purposes.
Office —1609 Texas

Securities

shares

*

.....

Border

Corp., New York
Oct. 20 filed 823,825 shares of common stock (par one
cent), to be offered in exchange for the common stock of
General Industrial Enterprises, Inc., at the rate of five

Office—

purposes.

Insurance

—

12

—

Chicago, 111. Underwriter—None.

Service

Oct.

offered

Electrosonics, Inc.
Sept. 25 filed 133,000 shares of common stock (no par).
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
the provision of funds to assist the company's expansion
into the civilian market. Office
Newton Highlands,
Mass. ' Underwriter—G. Everett Parks & Co., Inc., 52
Broadway, New York City. Offering—Expected some¬

Insurance Co.

general

Sheridan Road,

—

Blanch-Ette,

Investment Fund

Robert Kamon

B.

each

American

additional instalment obligations, and
possibly for the expansion of warehouse facilities.
Underwriter
Dempsey-Tegeler & Co., St. Louis, Mo.
and

also

cattle; for improvements; to buy additional ranch iD
Queensland, Australia; and for other corporate purposes

eight shares then held; rights to expire
on or about Nov. 27.
Price—$12 per share. Proceeds—To
raise the ratio of its capital stock,
surplus, and surplus
reserve to premium writings, to
increase underwriting

capacity,

inventories

Jan. 13 filed 4,000,000 shares of common stock. Price—
At par (56!/4 cents per share). Proceeds—To purchase

None.

opening
stores, requiring the carrying of additional

ot additional

City, Mo. Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc.
Australian

also selling shareholders; the

are

balance will be used for general corporate purposes, and
the possible future expansion of its business by

Kansas

Inc.

Sept. 22 filed 166,666% shares of capital stock (par $3),
being offered to holders of outstanding shares of such
sjtock cf record Oct. 27, 1959, in the ratio of one new

4750

Biederman,

deceased, all of whom

to 11:30 a.m. (EST) on

Aug. 28 filed 400,000 sharos of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬
ment in common stocks.
Office—301 W. 11th Street,

600,000 shares of common stock (par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of 3 shares of common
($1 each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
national Trade Mart, New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept. 2, which will
determine whether a stop order will be issued suspend¬
ing the offering.
No decision has been announced.

share for

Springfield, Inc., a Missouri corporation, all of the out¬
stock of both corporations.
The shareholders
from whom such stopk is be acquired are David Bieder¬
man, William Biederman and the Trustees of the Trust
Estates created under the Will of Charles

^ Artesian Water Co.
(letter of notification) 100 shares of class A com¬
mon
stock (no par). Price—$40 per share. Proceeds—
To expand the water distribution system. Office—501
Newport & Gap Pike, Newport, Del. Underwriter —
Laird, Bissell & Meeds, Wilmington, Del.
Associations

account

standing

Nov. 2

filed

American Motorists

Underwriter—To

competitive bidding. Probable bidders:

up

(par $1)

pany's account and 115,086 shares are being offered for
the accounts of certain selling stockholders. Price—To be
supplied by amendment. Proceeds—$845,170 will be used
to purchase from the shareholders
of Biedermans of
Alton, Inc., an Illinois corporation and Biedermans of

Dec. 8.

Business Investment Corp.

Investors

• •

Light Co.

Bids—Expected to be received

Sept. 29 filed 100,000 shares of common stock (par $8).
Price—$11 per share. Proceeds—To be used to provide
equity capital" and long-term loans to small business
concerns.
Office—Washington, D. C. Underwriter—To
be supplied bv amendment.
•

;>/

•

stock

common

•

ly); Blyth & Co., Inc. and Dean Witter & Co. (jointly);
Merrill Lynch, Pierce,>Feiiner & Smith Inc. and Kidder,
Peabody & Co. (jointly); Eastman Dillon, Union Secu¬
rities & Co. and Equitable Securities Corp.
(jointly).

either in cash or in bonds issued by
Proceeds—For expansion.
Office—
Hadera, Israel.
Agent — Harry E. Brager Associates,
Washington, D. C., and New York.
Offering—Expected
any day.

June

&

370,000 shares of

the

Biederman Furniture Co. (11/23-27)
^
Oct. 16 filed 331,635 shares of class A common stock
(par
$1). Of the total, 216,549 shares will be sold for the com¬

construction and acquisition pur¬
Dillon, Union Securities

Halsey, Stuart & Co. Inc.; Lehman Brothers and Stone &
Webster Securities Corp. and White, Weld & Co. (joint¬

per share, payable
the State of Israel.

Small

(12/3)

Proceeds—For construction.

be determined by

Sept. 9 filed 100,000 shares of class A stock. Price—$12.60

Allied

Power

filed

12

issuing company and 300,000 shares will be.sold
for the accounts of certain
selling stockholders. Price—To be supplied by amendment. Proceeds—For
^working
capital and other corporate purposes.'- Underwriters —Smith, Barney & Co., New York; Kirkpatrick-Pettis Co.,
Omaha, Neb.; and The First Trust Co. of Lincoln, Neb.

(12/8)
filed $15,000,000 of first mortgage bonds, series

due 1989.

^

.

Rubber Co.

Co.

.

Oct. 23

Co., Inc.

3,000,000

Alliance Tire &

Gas

Underwriter—Eastman
Co., New York. ■

Arkansas

five cents).. Price—$2.50 per

four

Louisiana

of

10 filed

bank loan incurred for

shares of common stock (par
share. Proceeds—For fur¬
ther development and. exploration of the oil and gas po¬
tential of the company's Alaska properties. Office—80
Wall Street, New York.
Underwriter—C. B. Whitaker
Co., New York. Offering-—Expected in about three to

Sept.

(12/15)

tools, construction and for working
capital.
Office—5871 E. Firestone Boulevard, South
Gate, Calif. Underwriter—None.

poses.

—For general

,

' "'"H

• Behlen Manufacturing Co., Columbus, Ohio

$16,000,000 of first mortgage bonds due in
1979. Price—To be supplied by amendment. Proceeds—
To be used to repay part of an outstanding long-term

stock

/

f

ISSUE;*-:

REVISED

of which 70,000 shares are to be offered for the

Arkansas

(par 10 cents). Price—$3 per share. Proceeds
corporate purposes. Office—229 S. State
Street, Dover, Del. Underwriter—Aviation investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
mon

ADDITIONS

PREVIOUS

ITEMS

Thursday. November 19, 1959

.

.

Nov.

Nov.

Aircraft

.

held.

chase inventory, new

Denick

•

•

subscription by common stockholders at the rate of two
preferred shares for each three shares of common stock
Price—At par ($1 per share).
Proceeds—To pur¬

Abbott-i-Warner Co., Inc. •
Aug. 12 (letter of notification) 62,500 shares of common
stock (no par).
Price—$2.70 per share. Proceeds—To
prepare estimates and to submit
bids, as prime con¬
tractor on specialized construction projects. Office—123
...

* INDICATES

"'/SINCE

in

Sept. 25

Chronicle

The Commercial and Financial

(2124)

Street, El Paso, Texas.
Bourns,

Offering—Ex¬

Inc.

Underwriter—None.

(11/24)

/

Sept. 14 filed 375,000 shares of common stock, of which
300,000 shares are to be publicly offered. Price—$3.50
per share.
Proceeds—For general corporate purposes,

pected this week.

Nov. 2 filed 120.000 shares of capital stock (par 50
cents).
Of the total, 60.000 shares are to be offered for the com¬

including, possibly, the acquisition of similarly engaged
companies. Office—113 Northeast 23rd Street, Oklahoma
City, Okla.
Underwriter — First Investment Planning

stock

Bankers Management Corp.
Sept. 10 (letter of notification) 300,000 shares of common
(par 25 cents). Price—$1 per share. Proceeds—
For working capital. Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark.

pany's account and the remaining 60,000 shares are to be
sold for the account of a certain selling stockholder. Price
—To be supplied by amendment. Proceeds—For working
capital. Underwriter—Blyth & Co., Inc., New York. 1
■

Co., Washington, D. C.;

■/".

/

^American Yachting Systems, Inc. (11/23-27)
Oct. 30 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For

general

corporate

purposes.

Office—Roslyn, N. Y.

Underwriter—Hilton Securities Inc., formerly

Chauncey,
Walden, Harris & Freed, Inc.,? 580 Fifth Avenue, New
York, N. Y.

Anodyne, Inc., Bayside, L. I., N. Y. (11/20)
Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—For

expansion and general corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New York, N. Y.
•

Anthony Pools, Inc. (12/7-11)
Sept. 28 filed 200,000 shares of outstanding common stock
(par $1). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office—5871 Firestone Boule¬
vard, South Gate, Calif.
Underwriter
Marron, Eclens,
Sloss & Co., Inc., New York.
Registrar—The First Na¬
tional City Bank of New York.
—

Anthony Powercraft
Sept. 8 (letter of notification)
mulative

convertible

241,200 shares of 5%

preferred

stock

to

be

of

1,400,000 investors
stockowners live

in

are

worth

bidding for. That's

Chicago and Mid America.

in stocks alone exceed $20 billion.
You
hid for their future investment

can

coio.

•;

.

how

many

Their

holding

make

a

strong

plans by advertising your
Chicago Tribune. In the Tribune, your mes¬
will have greater circulation and influence than in
any

other newspaper
vit h your

in the midwest. Why not talk about it
today
Tribune representative?

THE

WORLDS




GREATEST

NEWSPAPER

Underwriters,

'

—-

Barber-Greene

j

Co., Aurora, III.

Inc.,

Denver

issuing company, and 8,600 shares

Breuer & Curran Oil

are

to be offered for

Plaza, Chicago, 111.

&

Co.,

Bank

be

to

mon

one

100,000 warrants for the purchase of com¬
stock, and 100,000 shares of stock reserved for is¬

ing
N.

Life Insurance Co. and New
England Mutual Life Insur¬
ance Co. in connection with the
(consummated) acquisi¬
tion of Hevi-Duty Electric
Co., with the balance to be
used for general corporate
purposes. Office—3830 West
Grant St., Milwaukee, Wis.

Brand Hosiery Co.
(letter of notification) 2,000 shares of common
(no par) to be offered for subscription by stock¬

10

offered

new

to

share

holders

for

each

working
Y.

of
8

common

such

stock

shares

,

stock
on

held.

capital.

Office—20

»• •

•

the

(par $5),
basis

Price—$64

Valley

Underwriter—None.

of

per

St.,

End well,

'

,

California Mutual

holders of record Dec. 10, 1959 on the basis of one share
for each 6y2 shares held.
Price—$100 per share. Pro¬
S. Wabash

-

California Metals Corp.
July 27 filed 2,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake,City.
*
K
>"

ic Bear

working capital. Office—131
Chicago 3, 111. Underwriter—None.

;

share. Proceeds—For general corporate purposes, includ¬

upon exercise of said warrants.
Proceeds—The
proceeds from the sale of the stock will be used to re¬
deem notes issued in equal amounts
to Mass. Mutual

ceeds—For

-

.

Securities Co., Inc., Old Town
Building, Baltimore 2, Md.

Cadre Industries Corp.
Sept. 25 filed 17,532 shares of

Corp.

Oct. 30 filed

Nov.

/.

...

Underwriter—Maryland

New

York.

Products

.

building and equipping stations and truck
stop and. additional working capital. Office—C/o Gar¬
land D. Burch, at 707 Grattan Road, Martinsville, .Va.

—

Morgan

*.

Proceeds—For

Corp. (12/4)
shares of common stock. Price
$6 per share. Proceeds—For general corporate purposes,
including expansion. Office — 35 Union Square West,
Underwriter—Peter

-

common

BarChris Construction

York.

...

Sept. 25 (letter of notification) 120,000 shares of class A
stock (par five cents).
Price-—$2.50 per share.

Offering—Expected today (Nov. 19).

Oct. 28 filed 280,000

7
•

Burch Oil Co.

1

Chicago, 111.

*

in

of the present holders thereof.
Price—$17
Proceeds—To be added to general funds to
reduce bank loans.
Underwriter—William Blair & Co.,

share.

Co.

Sept. 24 filed $1,500,000 of co.-ownership participations
an oil and gas exploration fund. Price—The minimum
participations will be $10,000. Proceeds—To conduct oil
and gas exploration activities. Office—3510 Prudential

(11/19)

the accounts
per

filed

Paine, Webber, Jackson & Curtis, New York.

2

•

Oct. 21 filed 133,600 shares of common stock
(par $5) of
which 125,000 shares are to be offered for the account of

stock

dHjmtgu QTribiinc

/•

10

several selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. Office
—8000 Bluff ton Road, Ft. Wayne, Ind. . Underwriter—

suance

securities in the
sage

Nov.

(letter of notification) 100,000 shares of common
(par $1.60). Price—$3 per share. Proceeds—Foi
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver,- Co!'

Basic

WORTH RIDDING FOR!

] "•

Bankers Preferred Life Insurance Co.

New

for

Instruments

stock

Offering—Expected in about 30 days.

cu¬

offered

Bowmar

Jan. 30

N

Underwriter—Ringsby

•

•

Corp. (12/14) *> f
}
78,000 shares of common stock (no par),
of which 45,000 shares will be offered for the company's
account and 33,000 shares will be offered for the account

N. J.
'•

.

,

.

.

_

Co-Ply, Inc.

Sept. 14 filed 140 shares of voting common stock. Urice
($5,000 per share). Proceeds—To purchase the
related facilities of Durable Plywood Co. for

—At par
mill and

Ave.,
-

$690,000, with the balance to be used for working capi-

•

Volume 190

Number

5900

The Commercial and Financial Chronicle

...

(2125)
tal.

Office—Calpella, Calif.

Underwriter—The offering
Bobbins, one of the
promoters, the list of which also includes Harry
Ernest Holt, of Eureka,
Calif., President of the company.

debentures, with

is to be made by Ramond
Benjamin

Calumet & Hecla,

—For

one

for

to

warrant

each

100

purchase

common

10

snares

corporate

.

ic Citadel Life Insurance Co. of New York
10 filed 60,000 shares of common
sfock (par $10).
Price—$20 per share. Proceeds—For
working capital.
Office—150 Broadway, New York
City. Underwriter—
The stock will be sold
through the efforts of the officers

Capital Ufe Insurance & Growth Stock Fund
(11/23-27)
26 filed (by
amendment) 500,000 shares of stock
(par one cent). A class of stock issued by Capital
Shares, Inc. Price—$10 per share. Proceeds—For in¬

Nov.

Oct.

and

Underwriter—Shearson, Hammill & Co., New
■'
—A.>/.
■

York.

general

Charlotte, N. C.

preferred.

vestment.

cash

purposes,
including working
capital and the acquisition of shares of the outstand¬
ing common stock of Davenport
Hosiery Mills, Inc.,
of
Chattanooga, Tenn. Office — 2417 North Davidson
St., Charlotte, N. C. Underwriter—R. S. Dickson & Co.

Inc., Chicago, III.

'

attached

an

for

held. Price -—To be
supplied by amendment. Proceeds

Oct. 27 filed 188,340 shares of common
stock, to be of¬
fered in exchange for all of the common and
preferred
stock of Flexonics
Corp., on the basis of onfe Calumet
share for jeach 2% shares of Flexonics
common and
Calumet share for .each 4 shares of Flexonics

shares

common

nine

directors

of

the

principally

company,

Moshe

B.

Pomrock, President.
•

,

for"1 working capital. Office—
Stiles Lane, New Haven, Conn. Underwriter—Putnam
& Co., Hartford, Conn.
»*
.

•

Chadbourn Gotham, Inc. (11/23-27)
Sept. 28 filed $2,000,000 of 6% conv. subord. debentures,
due Oct. 1,1974, with warrants to
purchase 200,000 shares
of common stock
(par $1), to be offered for subscription
by holders of Its common stock at the rate of $100 of

NEW

ISSUE

250,000 shares of class A common stock
Price—To be supplied by amendment. Pro¬
be

invested

Coastal States
Nov.

12

filed

Gas

Producing Co.
stock

common

(par $1).
Proceeds—To sell¬

Price—To be related to the market.

ing stockholders; • Off ice—200 Petroleum
Tower, Corpus
Christi,/Texas.
Underwriter—Blair & Co. Inc., New
York. City.,
~
:
-

.<

•

•

,

Colorado

Central Power Co.
/
66,490 shares of common stock (par $2.50)
being offered for subscription by holders of
outstanding
stock of record Nov.
6, 1959, on the basis of one new
share for each 10 shares then
held; rights to expire on
.

Oct. 16 filed

24

(Tuesday),

Atlantic City Electric Co
•

Barber-Greene Co.

-

(Bids

(Fri day)

Permian

Lyon

&

Co.,

(L. D.

Sherman

Ryder

Inc

&

Co.)

&

Smith

36,237

by

Lehman

Inc.)

467,247

referred

shares

Common

$300,000

Common
Co.)

331,635

(No

Co.)

&

Co.)

$2,000,000

/Common
501,863

(Van

shares

$400,000

Consolidated Diesel Electric Corp
Alstyne, Noel & Co.)

$1,000,000

Supermarkets, Inc

Dashew Business
(Shearson,

Machines, Inc
Hammill

&

Co.)

Common

150,000

(J. A. Hogle & Co.; Garrett-Bromfield & Co.
&

General

shares

Flooring Co., Inc

'

..Debentures
Friedrichs

$1,500,000

Micronaire Electro Medical Products
Corp... Com.
Investing Corp.)

200,000

shares

Co.)

by'

283,307 shares

,

Oak Valley Sewerage Co.

Oak Valley Water

Bonds
$145,000

Co

Bonds

(Bache & Co.)

$125,000

Industries, Inc
(S.

D.

Fuller

.Debentures
&

Co.)

$1,500,000

11

a.m.

EST)

Bonds
$15,000,000

(Howard W.) Sams

Common

(Indianapolis Bond & Share Corp., Kiser, Cohn &
Shumaker,
Inc., and Walston & Co.) 88,000 shares

Superior Manufacturing & Instrument
Corp.
(D.

White

Shield

A.

Com.

Lomasney & Co.) $240,000

Corp

(Adams

Peck)




The

Inc.)

Inc.)

&

$600,000

196,400

shares

Common
Co.)

165,000

Edens,

110,000 shares

Sloss

&

Share

&

(W.

R.

Staats

Marine, Inc

United

Marine,

&

Corp.)

$915,642

;
Common
30,000 shares

Debentures
$600,000

Inc.)

$1,089,125

(Boenning & Co.)

655,000

Debentures
Co.)

Haupt

&

(Aviation

Common

,

.

,•*.

(Hill,

.

&

Miller,

Investors

to be

of

Inc.)

100,000

shares

600,000

shares

Lomasney

& Co.)

$600,000

Palomar

Broad

Corp.._.Common
$300,000

Invited)

$50,000,000

Jones

&

Jackson

$404,106.50

Curtis

&

Templeton)

(J.

(Watling,

Preferred

and

Mitchum,

—..Common

Talcott

A.

December 2

Common

145,000 shares

Co.)

(Bids

Inc.)

$2,500,000

Notes
$15,000,000

Bonds

invited)

$7,500,000

a.m.

EST)

Bonds
$15,000,000

Fall River Electric Light Co
(Bids

11

a.m.

Preferred

EST)

$3,000,000

Fed-Mart Corp
(Eastman

Debentures

Dillon,

Union

Farms,

(R.

S.

Securities

&

Co.)

$3,000,000

Inc

Dickson

&

Common

Co.)

67,500

shares

Transitron Electronic Corp.___
(Merrill Lynch, Pierce,

..Common

Fenner & Smith Inc.)

1,000,000 shares

(Wednesday)

Land Bank of France
Stanley & Co.

Bonds

and

Lazard

Freres

&

Co.)

$16,000,000

11

a.m.

Co.)

$50,000,000

Bonds

EST)

$4,000,000

New England Power Co
to

December 10

be

..Preferred

invited)

$10,000,000

(Thursday)
Common

Morgan & Co.)

$600,000

Red Fish Boat Co
(R.

A.

Common

Holman

14

&

Inc.)

Co.,

$300,000

(Monday)

Bowmar Instrument Corp

Common
78,000 shares

Copperweld Steel Co..

Debentures

(Dillon, Read & Co., Inc. and Riter & Co.)

Gulf &

Western

Corp

Midwestern
(William R.

Haupt &

&

Turner

Timber

&

Timber
(Frank

Victoreen

Co.)

$1,500,000

Corp

Common

Co.; Boettcher & Co. and Bosworth,
Co., Inc.) 250,000 shares

Corp

..Common
250,000 shares

Corp
P.

Debentures

Hunt

&

Instrument

(Smith

Alstyne,

Barney

Co., Inc.)

$2,000,000

Co

Debentures

Noel

&

Co.)

$2,500,000

(Tuesday)
&

Co.;

The First Trust Co.

(Richard

$8,000,000

Debentures

Financial
Staats

Johnny-On-the-Spot

(Friday)

BarChris Construction Corp

Common

Kirkpatrick-Pettis

of Lincoln, Neb.)

Central,

Bruce

&

Co.

Inc

Co., Inc.)

and

370,000 shares

Common

$150,000

Common

& Co.)

January

$1,680,000

Seligman & Latz, Inc

Common
Co.)

&

Missouri Power & Light Co

Behlen Manufacturing Co
—Bonds

Securities

Morgan

Notes
$7,500,000

(Tuesday)

(Bids 11:30

December 15

(Thursday)

(F. Eberstadt &

be

Debentures

Arkansas Louisiana Gas Co.
December 4

to

December 8

(Van

Union

$750,000

Arkansas Power & Light Co...

Turner

Corp

Dillon,

Co.)

(James), Inc

Common

(Offering to stockholders—underwritten by Kidder,
Peabody & Co., Inc.) 29,534 shares

(Eastman

&

(Frank P. Hunt & Co., Inc.)

(Wednesday)

December 3

Hogle

(F. Eberstadt & Co. and White, Weld &
Co.)

(Ira

..Common

Middlesex Water Co

United Control

______Debentures

Worcester County Electric Co

$1,248,000

Apparel, Inc..
&

Common
80,000 shares

Co

(Paine, Webber, Jackson & Curtis)

Co., Inc

Lerchen

shares

(James), Inc.

Sullivan

Winkelman Bros.

200,000

(F. Eberstadt & Co. and White, Weld &
Co.)

$10,000,000

(Johnson. Lane Space Corp.)

&

Co.)

(J. A. Hogle & Co.)

December

Common

Corp.)

General Telephone Co. of California
Webber,

$150,000

—Common

&

Co

Palomar Mortgage

(Peter

America, Jpc,.)

Street

Inc.)

Ltd-.

Mortgage

.Common

..

Dyna-Therm Chemical Corp...

Electronics Development, Inc
(First

Common

Co.)

Darlington

(Bids

Common

(Tuesday)

'Bids

Debens.

$2,500,000

Common

$670,000

Aircraft Dynamics International
.

250,000 shares

Co.)

Electronics Funding Corp

(Bids
...

(Michael G. Kletz & Co.)

&

shares

Dynex, Inc

$1,250,000

Publishing Co
Mellen

34

..Common

Dilberts Leasing & Development
Corp

(Morgan

125,000 shares

Universal Container Corp

(Joseph,

200,000

Development Corp

Haupt

December 9

shares

Inc..

December 1

page

Common

Co.)

&

Inc.)

(Lee Higginson Corp.)

Dilberts Leasing &

Scott-Mattson

..Common

(Boenning

on

Common

Co.,

Citizens Casualty Co. of New York

Common

Lomasney & Co.)

United

.

(11/23-27)

December 7 (Monday)
Anthony Pools, Inc

shares

Common

Robinson-Humphrey Co.,

(Peter

Common
&

Co.,

Co.,

Staats

(Blyth & Co.,

Potomac Electric Power Co
(Bids

&

(400,000 shares)

Common

(Bache & Co.)

.Common

Trans-World Financial Co

Vance-Sanders

$5,318,800

National Video Corp
Co.)

Publications, Inc.

Continued

Talcott

&

Bond

•

Price—To be supplied
by amendment. Proceeds—To re¬
tire $3,500,000 bank loan
incurred in connection with the

and

...

Merry Brothers Brick & Tile Co

Debentures

stockholders—underwritten

&

R.

!

501,863 shares of common stock (no
par)
offered for subscription
by common stockholders.

to be

$1,150,000

i
Common
(Johnson, Lane, Space Corp.; Francis I. du Pont & Co. and

Wts.

50,000 warrants

National Bellas Hess, Inc

(Bache

Co.

Inc.?

Common

Blauner

(Myron A.

(Paine,

Micronaire Electro Medical Products
Corp
(General Investing Corp.)

Conde Nast
Oct. 30 filed

Consolidated Edison Co. of New York, Inc—Bonds

Howard, Weil, Labouisse, Friedrichs
Mason-Hagan, Inc.) 270,000

&

D.

■

Underwriter—Lehman Brothers, New
Offering—Indefinite.

•

235,000 shares

(Myron A. Lomasney & Co.)

Common

M. Byllesby & Co.,
Inc.;
& Co. and

to

&

Co.,

-Debentures

Blauner

D.

.

General Flooring Co., Inc.

Stern /Bros.

Schrijver

&

Life Insurance Co. of Florida

World

Peters, Writer
-

(H. M. Byllesby & Co.,
Inc.; Howard, Weil, Labouisse,
& Co. and
Mason-Hagan, Inc.)

(Offering

Young

(Paine, Webber, Jackson & Curtis and Tucker, Anthony
& R. L. Day) 105,000 shares

Debentures
and

Christensen, Inc.) $6,000,000

(General

Co.;

Herbert

Hawthorne Financial Corp

Common

Frontier Refining Co

Perrine

(Milton

.Debentures

(Diran, Norman & Co.) $300,000

(H.

(Milton

Common

Bros.)

York.

Oxford Chemical Corp

Publications, Inc

Cracker Barrel

.Common

Inc.;

Mohawk Business Machines Corp

Manufacturing Co.
(Vermilye

&

"best efforts" basis.

a

to be
offered in uints as follows:
$1,000 of bonds and 48 shares
of stock and
$100 of debentures and nine shares of
stock.
Price—To be supplied
by amendment.
Proceeds — !To
oonstruct refinery.

Garden Land Co.,

Federation, Inc

Debentures

underwriting—offering to stockholders)

Conetta

shares

(Monday)

Cohon

(Plymouth

$5,000,000

Inc._

Dickson

on

Commerce Oil Refining
Corp.
!
Dec. 16,1957 filed
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated
debentures due
Oct. 1, 1968 and
3,000,000 shares of coihmon stock

(Myron A.

—Common
150,000

Harman-Kardon, Inc. fS.

Common
&

Associates,

Inc., Indianapolis, Ind.,

Mohawk Business Machines Corp

Fund
Hammill

100,000 shares

Richard Bruce & Co., Inc.)

Financial

shares

Capital Life Insurance & Growth Stock

Gotham,

$800,000

Inc.—

(William

Biederman Furniture Co

(Shearson,

60,000 shares

Hydromatics, Inc.

Systems, Ine

&

Co.)

Harman-Kardon, Inc.
Common"
- '

135,000 shares*.-

Securities, Inc.)

(Dempsey-Tegeler

&

Debentures

(Kidder, Peabody & Co.)

(Monday)

(Hilton

development,

working capital Office—135 S. La Salle
Street, Chi¬
111.
Underwriter—David Johnson &

cago,

(Ira

Co.,

(par $1).

share. Proceeds—For general
corporate
purposes, inclding expansion, new
product
per

(Ira

Securities

Morris
,

shares

Utilities, Inc

American Yachting

Nast

Walker

Faradyne Electronics Corp

Brothers)

(Netherlands

(Jaffee, Leverton, Reiner Co.)

November 23

Electronics, Inc.
800,000 shares of common stock

30 filed

Price—$2.50

(Darius

(Offering to stockholders—underwritten by White, Weld & Co.)

Conde

H.

Common

November 30

Piedmont Natural Gas Co., Inc

8.

Common

G.

Co

Debentures

State Electric & Gas Corp
Common
(Offering to stockholders—underwritten by The First Boston
Corp.; "Lehman Brothers; Wertheim & Co. and Merrill Lynch,
Pierce, Fenner

Combined
Oct.

$300,000

New York

(R.

and

(Blyth & Co., Inc.)

$9,998,800

Southern Gulf

$16,000,000

1!

System,

-Common

stockholders—underwritten

Chadbourn

Oil

tematic Investment Plans and
Systematic Investment
Plans With Insurance. Office—15
East 40th Street, New
York. Underwriter
—None. Offering —
Expected some
time after Jan.
1, 1960.

(Marron,
EST)

(Lehman Brothers)

$300,000

Inc.)

Laboratories,

shares

Bonds

a.m.

Permian Oil Co

Great Western Financial Corp
to

11

Brothers

Common

(Ross,

120,000

(Lehman Brothers)

November 20

Electro-Sonic

Inc.)

Industries, Inc

(Lehman

$2,271,200

Anodyne, Inc.

(Offering

Gulton

—Common

(William Blair & Co.)

& Co.,

Gulf States Utilities Co

Common

*r(Eastman Dillon, Union Securities & Co. and
^ v
Smith, Barney & Co.) 200,000 shares

•

Common

(Blyth

(Thursday)

Columbian Financial
Development Co.
Aug. 14 filed $1,000,000 of Plans for
Investment in
Shares in American
Industry, of which $500,000 was for
Single Payment Investment Plans and
$500,000 for Sys¬

•;

Bourns, Inc.
-November 19

—

Broadway, Englewood, Colo,
Underwriter—The First Boston
Corp*., New York.:

v

in

40,000 shares of

November

CALENDAR

(12/7-11)

income-producing securities.
Office—33 Maiden
Lane, New York City. Underwriter—
Lee Higgirison
Corp.'
V,

"arid

program,

Casualty Co. of New York

filed

ceeds—To

of

struction

9

(par $2).

including the re¬
outstanding bank loans in the amount of
$425,000,' the provision of funds for the, 1959-60 con¬
payment

Citizens

Nov.

Nov. 30. Price—$20
per share. Proceeds—For
construc¬
tions Office
3470 South

and

,

Carwin Co.
Oct. 2 filed 48,080 shares common stock
(par $2), of which
46,080 shares are being offered for subscription by com¬
mon stockholders at the rate of one
new share for each
four shares held on Nov. 16. The
rights expire Dec. 7.
The remaining 2,000 shares are
being sold for the account
of a selling stockholder.
Price—$11.50 per share Pro¬
ceeds—For "general corporate purposes

-33

250,000 shares

Louisiana

19

Gas

(Tuesday)
Service Co..
(Bids to be invited)

Bonds

^

34

The Commercial and Financial Chronicle

(2126)

Brothers.

Continued from paye 33

Street & Smith Publications, Inc. last
— 420
Lexington Ave., New York City.
Underwriter—None. The registration statement is ex¬

acquisition of
August. Office

Manufacturing Co.

\
(par 20c),
holders of
the issuing company's 6% convertible debentures, and
100,000 shares are to be offered to the underwriter, with
the remaining 150,000 shares, in addition to those shares
described above not subscribed for by the debenture
holders and the underwriter, respectively, to be pub¬
licly offered. Price—For the shares to be offered to the
debenture holders, 75c per share, which is equal to the
price at which the debentures are convertible into com¬
mon stock; for the shares to be offered to the under¬
writer, $1 per share; for the shares to be offered to the
public, the price will be related, tq the current price of
the outstanding shares on the American Stock Exchange
Consolidated

Development Corp.

•

offering.

.

(11/23-27)

$75,000,000 of first and refunding mortgage
bonds, series Q, due Dec. 1, 1989.
Proceeds—For con¬
struction expenditures. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; The First Boston Corp.
Bids—Expected to be received up to 11 a.m. (EST) on
Oct. 30 filed

Dec. 1.

Association
5V2% 25-year subordinated
certificates of indebtedness and 120,000 shares of pre¬
ferred stock (par $25). Price—The certificates are to be
offered in units of $100; the preferred stock is to be sold
at $25 per share. Proceeds—To be added to general funds
•

Consumers

3

filed

Cooperative

$9,000,000

of

of the association and be used for

tificates

of

indebtedness

Office—Kansas City, Mo.

retiring maturing cer¬

for capital expenditures.
Underwriter—None.

and

Copperweld Steel Co. (12/14-18)
Nov. 16 filed $8,000,000 of convertible subordinated de¬
bentures, due Dec. 1, 1979. The company has applied for
the listing of the debentures on the New York Stock Ex¬
Price—To be supplied by amendment. Proceeds
short-term notes with the balance to beadded to general funds.
Underwriters—Dillon, Read &
Co., Inc., and Riter & Co., both of New York.

change.
—To

•

repay

Copymation, Inc.

(formerly Peck & Harvey Mfg.

Company)
Sept. 23 (letter of notification) 100,000 shares of com¬
stock (par 50 cents).
Price—$3 per share. Pro¬
ceeds—To pay bank loans and loans to stockholders and
others and for working capital. Office—5642-50 North
Western Avenue, Chicago 45, 111.
Underwriter—Sim¬
mon

Co., (handling the books) and Plymouth Secu¬
rities Corp., both of New York, N. Y. Offering—Expected
&

mons

any
•

day.

Denab Laboratories,

y

Oct.

30

(letter of notification) 5,450 shares of common

stock (par $5) and 27,250 shares of preferred stock (par

$10) to be offered in units of five shares of preferred
and one share of common. Price—$55 per unit. Proceeds
technical costs, sales, services, etc.
Office—494 S. San Vicente Blvd., Los Angeles 48, Calif.
Underwriter—Edward Lewis Co., Inc., New York. N. Y.
Offering—Expected in two to three weeks (subject to
SEC clearance).

—For engineering and

Cracker Barrel Supermarkets, Inc.

(11/23-27)

Sept. 25 (letter of notification) 120,000 shares of common
(par 10 cents). Price—$2.50 per share. Proceeds—
For general corporate purposes.
Office—84-16 Astoria
stock

Blvd., Queens, L. I., N. Y. Underwriter—Diran, Norman
& Co., New York.
Crusader Oil & Gas Corp., Pass Christian, Miss.

May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to
stockholders of record May 15, 1959.
The remaining

658,387

shares will be

offered publicly by the under¬
writer on a "best efforts" basis. Price—To be supplied
by amendment. Proceeds—For repayment of notes and
for working capital. Underwriter — To be supplied by
amendment.
•

Dallas Power & Light Co.
10 filed $20,000,000 of first

Nov.

mortgage bonds, due
1989. Proceeds—To repay short-term borrowings from
Texas Utilities Co., the parent company, which amounted
to

$12,500,000 on Sept. 30, with the balance to be used
for general corporate purposes, including construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Salomon Bros. & Hutzler;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Smith
Inc.

(jointly); Eastman Dillon, Union Securities & Co.;
Inc. and Baxter & Co. (jointly); Lehman

Blair & Co.,




Co.,' Inc..

New York.*
(subject

approval).

Fund, Inc.' "/
*
2,000,000 shares of capital stock. Price—To
supplied by amendment. Proceeds—Fbr investment.

Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc., Washington^
D.

share

C.

Office—1028

ington, D. C.

Price—$1.50 per share.

Wash-'

Connecticut Avenue, N.'W.,

/"/

• Electronics
Development, Inc. (12 ■ 1;
Sept. 25 filed 115,459 shares of common stock

/

k

\

>

(par 10c).

Price—$3.50

per share. Proceeds—For plant erection, ad¬
research
and
development,
and . working
capital.
Office — Gill and West College Streets, State
College, Pa. Underwriter—First Broad Street Corp., 50

vertising,

Inc.

Broad

including salaries, cars, promotion, inventory,offices, expenses incidental
to obtaining permission to do business in other states,'
and the establishment of a contingency reserve.
Office
—1420 East 18th Avenue, Denver, Colo. Underwriter—
None.
■"//.
■

.

St., New York.

y

,

purposes,

Electronics

Funding Corp. : »
Oct. 19 (letter of notification) 75.000 shares of common
stock (par 10 cents).
Price—$2 per share. .Proceeds—
For general corporate purposes. ' Business — Sales and
leaseback of special and staple machinery and equipment

the establishment of branch

27

notification) Pre-formation limited
partnership interests in an-aggregate amount of $295,000
to be offered in units of $5,000. Proceeds:—For working
(letter

.

1

•

•

Digitronics Corp.

offered

shares held.

holders of
one

—

of

outstanding shares

new

share for each i\vn

The rights dates are Nov. 18 to Dec. 3.

Office

poses.

the

to

the basis of

on

Price

Proceeds—For general corporate pur¬

Underwriter

Albertson, L. I„ N. Y.

Electro-Sonic

—

Granbery, Marache & Co., New York City.

Enfto

Dilberts

Leasing & Development Corp.
(12/7-11)
June 11 filed $4,400,000 (subsequently reduced to $2,-:
500,000) of 20-year convertible debentures, due July 15,
1979 and 1,056,000 shares (subsequently reduced to 600,000
shares) of common stock (par lc) to be offered in units
consisting of $50 principal amount of debentures and 12
shares of common stock. Dilberts Leasing & Development
Corp. expects to file a new statement next week. Deben¬
tures are guaranteed as to principal and interest by'
Dilbert's Quality Supermarkets Inc., the parent company.
Price —$51.20 per unit.
Proceeds — For repayment of

Dilbert's

as

cents).

porate purposes. Office—Maple Shade, N. J. Underwrit¬
ers—D. Gleich Co. and Aetna Securities Corp., both of
New York.

16th

Properties, Inc. Office—93-02 151st
Underwriter—Ira Haupt & Co.,

Oct.

Associates, Inc.
161,750 shares of class B, non-voting, com¬
(par $5). Price—$10 per share. Proceeds—
For general corporate purposes, including payment on
a building and the financing of loans. Office—Orlando,
Fla. Underwriter—Lecn H. Sullivan, Inc., Philadelphia,
Pa., on a "best efforts" basis.
V./y ;
/

•

-

amendment.

thereof.

Price — To be .supplied by
general corporate purposes,

Proceeds—For

including the purchase of equipment, addition to work¬
ing capital, and the redemption of the preferred stock
of a subsidiary. Office—607 Irwin St., San Rafael, Calif.
Underwriter—J. Barth &

Co., New York.

Dyna-Therm Chemical Corp. (12/10)
Oct. 28 filed 200,000 shares of capital stock
(par $1).
Price—$3 per share.
Proceeds—To purchase fitock of
subsidiaries, for payment of loans, and for working cap¬
ital.

Office—Culver

City, Calif.

Underwriter

—

Peter

Morgan & Co., New York City.

Proceeds--For general corporate
.including plant expansion, improvement and
equipment.
Office — 744 Broad St., Newark, N. J.
Underwriters
Netherlands Securities Cq.,- Inc. (han¬
dling the books) and Herbert Young & Co., Inc. (jointly);
Morris Cohon & Co.; Schrijver & Co.; Richard Bruce &
Price—$5 per share.

—

Co., Inc., all of New York.
>

Inc.
(letter of notification) 100,000 shares

it Fastline,
stock

_

Fed-Mart Corp.

6

shares of capital stock ($1 par).
supplied by amendment, Proceeds—Mostly

filed

235,000

for

of

Los

Dynex, Inc. (12/7-11)
Aug. 6 filed 120,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For general cor¬
porate
chase
Eileen

purposes, including product research, the pur¬
of new equipment, and expansion. Office — 123

Way, Syosset, L. I., N. Y. Underwriter—Myron A.

E.

H.

Aug. 31 filed 160,000 shares of capital stock (par 10c),
of which 100.000 shares are to be publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
automobile

breakdown

insurance

policies

on

thruways, parkways and highways in the amount of $25
breakdown insurance for the purchase price of

of such

of short-term notes, with the balance
capital. Office—5150 Wilshire Boulevard,
Calif. Underwriter—Kidder, Peabody &

Co., New York.

~

Income Fund, Inc.

Industrial

,

July 22 filed 1,000,000 /shares of common capital stock.
Price—At market. Proceeds—For investment.
Office—
950

Broadway/Denver, Colo.

General Distributor—FIF

Management Corp., Denver, Colo.
First Northern-Olive

Investment Co.

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other Northern-

companies, numbered "second" through "eighth."

Price—$10,084 to $10,698 per unit. Proceeds—To purchase

P. Corp.

distribute

Angeles,

Olive

Lomasney & Co., New York.
•

working

Financial

(11/30-12/4)

Federation, -Inc.

Financial

for the repayment

Underwriter—None.

J

(12/8)
Nov. 6 filed $3,000,000 of 6% subordinated debentures,
due
Dec. 1, 1979, convertible through Nov. 30, 1969.
Price—To be supplied by amendment,
Proceeds—For
intermediate- and long-term capital requirements.
Of¬
fice—8001 Othello Street; San Diego, Calif. Underwriter
—Eastman Dillon, Union Securities & Co., New York.
•

Price—To be

Box 2566, Orlando, Fla.

■

(par 10

it Dynatronics, Inc.
6 (letter of notification) $105,000 of five-year 6%

6.

•-

of common
cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Office—8 Washington
Place, New York, N. ,Y.
Underwriter — Mortimer 8.
Burnside & Co., Inc., New York, N. Y.

Nov. 6

subordinated debentures to be offered in denominations

Office—P.

.

.

(11/30;

Corp.

Electronics

Faradyne

Nov.

working capital.

.

Electric

River

19, 1959 and the balance will be used for construc¬

Nov.

$500 each with warrants to purchase 143 shares of
common stock.
Price—$3.50 per share.
Proceeds—For

•

purposes,

Corp.

holders

present

."

Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to be publicly offered.

filed

118,030 shares of common stock (no par),
100,000 shares are to be offered for the account.
of the issuing company and 18,030 shares, representing
outstanding stock, to be offered for the account of the

Underwriter—

C.

D.
.

,

.

5

-,

Underwriters—To be determined by com¬
petitive bidding. Probable bidders: Stone & Webster Se¬
curities Corp.; Kidder, Peabody & Co. and White, Weld
& Co. (jointly);. Eastman Dillon,/Union Securities & Co
Bids—Expected to be received up to 11 a.m? (EST) on
Dec. 8, 1959 at the offices of the company, 49 Federal
Street, 8th Floor, Boston, Mass._
•

Oct. 27 filed

Dutron

•

tion purposes.

.

stock

W., Washington,

Light Co. (12/8) '
Oct. 22 filed 30,000 shares of preferred stock (par $100).
Proceeds—To be used for prepayment of the company's
short-term bank loans, which amounted to $2,800,000 at

Mott

Don

N.

..

...

Fall

„

mon

Street,

None.

New York.

Communities, Inc. <
Sep); 25 filed 367,200 shares of common stock (par $1),
Price—To be supplied by amendment. Proceeds—For acquisition of Hope Homes, Inc., Browntown Water Co. and
Cantor & Goldman Builders, Inc., with the balance to
be used as working capital.
Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York. " *
'

Offering—Expected today (Now. 19).

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts.. Proceeds—For investment, etc. -Office—2480

Street, Jamaica, N. Y.
Diversified

Corp.
125,000 shares of common stock (par 10
Price—$3 per share. Proceeds—For general cor¬

Sept. 30 filed

notes; to develop and construct shopping centers and a
super-market under existing purchase contracts and for
working capital. Name Changed — Company formerly
known

c/o

stock

Sept. 25 filed 65,877 shares of capital stock (par 10 cents)
such stock

—

Aug. 14 (letter of

/

.-

Office

Laboratories, Inc. (11 25)
'
notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
To retire outstanding bank loan; to increase inventories;
for sales and promotional activities; to improve produc¬
tion facilities and to acquire new and improved tools
and machinery; for development and research and for
working capital. Office — 35—54 Thirty-sixth St., Long
Tsland City, N. Y. Underwriter—L. D. Sherman & Co.,
New York, N. Y.
* y "
*

capital. Office—555 Fifth Ave., New York 17, N. Y. Un¬
...

electronics ' industry.

Darius Inc., 90 Broad Street, New York 4, X:Y.' Underwriter—Darius Inc.; New York, N. Y.
y ■

of

derwriter—None.

American

the

lor

De Ville Co.

Oct.

of which

Inc.

&

ESA Mutual

be

one new

Boland

two to three weeks' time

June 29 filed

July 31 filed 50,000 shares of common stock (par $2.50).
Price—$10 per share. Proceeds—For general corporate

Nov.

Coraloc Industries,

to SEC

/.

the basis of

R.

Offering—Expected in

contracts, reduce ac¬
payable, and increase working capital,
OfficeSouth Dixie Highway, Troy, Ohio.
■/- ; • '
>
;

—S7.50 per share.

Nov.

(11/23-27)

finance government

Proceeds—To

cents, and for a public relations and publicity pro¬
Office—Hotel Troy Building, Troy, New' York.

Underwriter—John

counts

New York.

Inc.

on

for each four shares then held.;

being

(12/1)

!

of the record date

as

$1,000,000 of 6% convertible subordinated
debentures, due Nov. 1, 1975. Price—At 100% of prin¬
cipal amount. Proceeds—For working capital and the
discharge of $187,535 cf debts. Office—880 Canal Street,
Stamford, Conn. Underwriter—Van Alstyne, Noel & Co.,
29 filed

Consolidated Edison Co. of New York,

y./..

Thursday, November 19, 1959

..

gram.

Underwriter—Shearson, Hammill & Co., New
;\.y/.

stock

No. 956, Vedado,
& Co., Inc., New

Consolidated Diesel Electric Corp.

25

on

Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050 shares of common stock, of which
190,871 shares are to be offered to holders of outstanding

York.

Oct.

Machines, Inc.

York.

Proceeds—For general cor¬

porate purposes. Office — Calle 23,
Havana, Cuba. Underwriter—H. Kook

noon

filed

22

capital.

Aug. 28 filed 448,000 shares of common stock
of which 1198,000 shares are to be offered to

at the time of the

to

150,000 shares of common stock (par 10
cents). Price—To be supplied by amendment.
Proceeds
—For purchasing of equipment, expansion, and working

the week of Nov. 23.
(11/23-27)
Sept 28 filed 100,000 shares of class A common stock (par
10c). Price—$4 per share. Proceeds—For working capital;
to prepay a bank note; and for machinery and equipment.
Office—73 Sunnyside Avenue, Stamford, Conn. Under¬
writer—Vermilye Bros., New York.
Conetta

up

•

.

Dashew Business

Oct.

pected to become effective during
•

Bids—Expected to be received

Dec. 14.

.

land in Arizona. Office—1802

North Central Ave., Phoe¬

nix, Ariz. Underwriter—O'Malley Securities
nix.

Statement effective

First United

Sept.

28

filed

Life

of

one

Insurance

Co.

shares of common stock, to be
shareholders of record Oct. 15 at the

158,236

offered to common

rate

Co.. Phoe¬

Oct. 9.

new

share

for each

four shares then held;

Volume

150

Number 5900

.

.

The Commercial and Financial Chronicle

.

(2127)
rights to expire
For

on or

about Dec. 2.

Price—$5

and expansion.

company reserves

per

Office

Broadway, Gary- Ind. Underwriter—None.

—

share.
475-79

*

*

stock

common

and facilities and other general
corporate
Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York.
Name
Change — Formerly Eastern Packing
Corp.

Price—To be supplied by amendment. Proceeds—
It is expected that about
$437,500 will be used for addi¬

working capital and/or general corporate

loans.

cents).

—Johnson., Lane,-Space Corp., Atlanta, Ga. *

--Formula-409, Inc.
Oct.

29

filed

300,000 shares of common stock ,(no par).
Price—$1,50 per share.- Proceeds—For advertising, re¬
duction of indebtedness, bottling
equipment, payment of
$44,000 for acquisition of formula 409, a liquid
degreaser.,
and office equipment., Office—10 Central
Street, West
Springfield, Mass. Underwriter—DiRoma, Alexik & Co.,

Springfield, Mass._
Fredonia

-

.

•

Underwriter

•.

"•

•

Frontier Refining Co. (11/23-27)
16 filed $6,000,000 of 6% convertible
subordinated
debentures dated Nov. 1, 1959 and due Oct.
31, 1959.
Price—At 100% of principal amount plus accrued inter¬
est from Nov. 1, 1959 to date of
delivery. Proceeds—
Oct.

To

purchase

the

•

Garden Land Co., Ltd. (12/7-11)
Nov. 9 filed 200,000 shares of common
Price
To be supplied by amendment.
land conversion and
improvement1 in
—

stock

(par

Proceeds

—

balance

to

be

added

Oct.

parts, and equipment, the retirement of debt, and
increase of working, capital. Office — MacArthur
Field, Islip, L. I., N. Y. Underwriter—Dunne & Co., New
York. Offering—Expected this week.' the

General! Coil

Oct. 29

of

derwriter—A. T. Brod & Co.. New
York, N. Y.
—Expected in four weeks.

Offering

share.

Nov.

4

supplies.
Office — Santurce, Puerto Rico. - Under¬
writer—Caribbean Securities Co., Inc., Avenida Condado
609, Santurce, Puerto Rico.

small

•

Oct. 15

$100

principal amount

common

stock.

Proceeds—For

of

Price—To

debentures
be

and

supplied

general- corporate

shares

18

by amendment.

Feb.

including
reduction of indebtedness and the*
purchase and
installation, of machinery and
equipment. Address—P.
O. Box 8109 New
Orleans, La. Underwriters
IL M.
Byllesby & Co., Inc., Chicago, 111.; Howard, Weil, Labouisse, Friedrichs and Co., New Orleans,
La., and
Mason-Hagan, Inc., Richmond, Va.
• General Telephone Co. of Calif.

cents).

construction

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart
& Co., Inc.; Paine,
Webber, Jackson & Curtis, and Stone & Webster Secu¬
rities

Corp

table

Securities

(jointly); The First Boston Corp. and Equi¬
Corp. (jointly); White, Weld & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
received up to 11 a.m.

(EDT)

on

Dec. 2.

April
mon

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000

to be offered for the account of the
company
and 30,000 shares for a
selling stockholder. Price—$1 per
share. Proceeds—For furniture
are

inventory and improved

merchandising methods, to finance the real estate depart¬
ment and insurance
policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co..
Inc., Pine Bluff, Ark.
Gibraltar
19

filed

—

Gold
June

Medal

Packing Corp.

18 filed

cent), and

572,500 shares of common stock (par one
50,000 common stock purchase warrants. Of

the

400.000

shares

will

be

company; 110.000 by certain




sold

for

the

Avenue,

Investment

Washington,

Advisory

D.

C.

Service,

Washington, D. C. Underwriter—Investment Manage¬
Associates, Inc., Washington, D. C. The statement
July 24.

Guaranty Insurance Agency, Inc. *.
See, Mortgage Guaranty Insurance Corp., below.
Gulf States Utilities Co.

prior to the date of sale of the

new

account

of

the

stockholders; 12.300 for the

bonds, and the bal¬

Brothers; Merrill Lynch, Pierce, Fenner & Smith Inc.
and White, Weld & Co. (jointly); Stone & Webster Secu¬
Corp.; Salomon Bros. & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly). Bids—Expected to
be received up to 11 a.m. (EST) on Nov. 24 at the office
rities

Bank, Room A, 70 Broadway, New York

Gulf & Western Corp. (12/14-18)
5 filed $1,500,000 of 6% convertible

Nov.

required,

to

finance

counts receivable

on

increased

inventories

and

ac¬

behalf of subsidiaries. Office—4615

Empire State Bldg., New York. Underwriter—Ira Haupt
& Co., New York City.
Gulton
22

165,000

Blvd.,

Hawthorne, Calif.
Underwriter—
Angeles, Calif.

Hickerson Bros. Truck Co.,

Inc.
(letter of notification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds—'To
pay existing liabilities; for additional equipment; an4
for working capital.
Office—East Tenth Street, P. O.
Box 68, Great Bend, Kan.
Underwriter—Birkenmayir
& Co., Denver, Colo.
Offering—Expected shortly.
March 11

stock.

mon

•

Housatonic

Public Service

Co.

Oct.

23 filed 76,642 shares of common stock
(par $15)
being offered for subscription by common stockholders
on

the basis of

of

record

one

new

share for each five shares held

Nov.

Price—To

be

17, 1959; rights to expire on Dec. 3.
supplied by amendment. Proceeds—For

construction, including the payment of short-term loans
incurred for this purpose.
Office—33 Elizabeth Street,
Derby, Conn.
Underwriters — Allen & Co., New York,
and Bacon, Whipple & Co., Chicago, 111.
•

Hydromatics, Inc.

(11/30-12/4)

Oct. 20 filed 105,000 shares of common stock

(par $1), of
80,000 shares are to be offered for the account of
company, and 25,000 shares are to be offered for the
which

accounts of the present holders thereof. Price — To be
supplied by amendment. Proceeds—For working capital.

Office—Livingston, N. J. Underwriters—Paine, Webber,
& Curtis, and Tucker, Anthony & R. L. Day,

Jackson

both of New York.

I C Inc.

600,000 shares of

common

stock (par $1).

Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and

enfranchising of bottlers, the local and national pro¬
and advertising
of its beverages, and where
to make loans to such bottlers, etc. Office—
Equitable Bldg., Denver, Colo. Underwriters— Pur¬
& Co. and Amos C. Sudler & Co., both of Denver.

motion

necessary

704
vis

Colo.

12

filed

(formerly Indiana Steel

Co.)

208,270 shares of

These shares were
stock of General

common

stock

(par $1).

issued to holders of the outstanding

Ceramics, pursuant to the terms of the
General, which became effective
Valpariso, Ind. Under¬

merger of Ceramics into

Office—405 Elm Street,
writer—None.
Nov. 16.

Industrial

Leasing Corp.

*
'
notification) $200,000 subordinated
debentures ($1,000 denomination) and
$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬
nue, Portland 4. Ore.
Underwriter—May & Co., Port¬
June

1

(letter

convertible

.

of

6%

land, Ore. Clearance date

was

Inland Western Loan &

June 9.

Finance

Corp.

Sept. 24 filed $1,000,000 of 6% capital debentures. Price
be supplied by amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life
Insurance

subordinated

debentures, due- Nov. 15, 1974. Price—To be supplied by
amendment. Proceeds—Initially for working capital, and,

Oct.

Financial

filed

—To

15, N. Y.

Industries, Inc. (11/24)
60,000 shares of common stock (par $1).
be supplied by amendment.
Proceeds—For

filed

Price—To

present holders thereof.

amendment.

—

Nov.

-Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman

of The Hanover

22

Products

agreements to provide funds for construction purposes,
of which it is estimated $6,000,000 will be outstanding

as

the

^ Indiana General Corp.

(11/24)

Oct. 13 filed $16,000,000 of series A first mortgage bonds
due 1989.
Proceeds — To pay off existing short-term
notes due Dec. 1, 1959, issued under revolving credit

Financial

Corp. of California
*
325,000 shares of outstanding capital stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders.
Office—9111 Wilshire
Boulevard, Beverly Hills, Calif. Underwriter
Kidder,
Peabody & Co., New York.
Oct.

—

will be used to carry forward the company's con¬
struction program and for other
corporate purposes.

6

shares

Connecticut
Advisor

ance

General Underwriters Inc.

by

June 29 filed

America, Inc.

became effective

^

of

supplied

William R. Staats & Co., Los

-

ment

program.

accounts

be

Hawthorne

W., Washing¬

250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment

Investment

bonds, series M,

to

Corp. (11/30-12/3)
shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Office
301 South

20,500 shares of common stock (par $1).
share. Proceeds — For investments in

filed

Office —1825

—

the

Hawthorne

per

businesses. Office—1625 Eye St., N.

4

Ave.,

due

filed

for

Oct.

Washington Industrial Investments, Inc.

filed

Growth Fund of

purposes,

National

Underwriter—The First Boston Corp.,

Offering—Indefinitely postponed

Proceeds—For
general corporate purposes. Office — Morton
Grove, 111.
Underwriter—Blunt Ellis & Simmons,
Chicago, 111. Of¬

Underwriter-—Lehman

(letter of notification) 200,000 shares of common
stock (par 50 cents). Price—$1.50 per share. Proceeds—
For expenses for exploring for oil and
gas. Office—212
Sixth Ave., South, Nashville, Tenn. Underwriter—Cres¬
cent Securities Co., Inc., Bowling Green, Ky.

the

Nov. 5 filed $30,000,000 of first
mortgage
due Dec. 1, 1989.
Proceeds—For,

Calif.

Green River Production Corp.

of

6

fered

de¬

ton, D. C. Underwriter—None.

General! Flooring Co., Inc.
(11/23-27) "
Sept. 14 filed $1,500,000 of 6%% debentures (par one
.cent) dated Oct. 1, 1959 and due Oct. 1, 1969, and
270,000 shares of common stock to be offered in units of

approxi¬
fbr^ general

conditions.

Price—To

market

Price—$8.50

and

used

W.

Harper Co.
100,000 shares of common stock (par $1),
60,000 shares are being offered for the account
of the issuing
company, and 40,000 shares are being of¬

28

Greater

common stock.
Price—$3
Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment

per

4400

—

fering—Expected in mid-December.

Crenshaw
Boulevard,
Brothers, New York.

Finance Corp.
Sept. 11 filed 150,000 shares of

Office

of which

—

General

(par $10).

(H. M.)

Nov.

bentures, due Dec. 1, 1974, to be offered for subscrip¬
tion by common stockholders of record Nov.
20, 1959
(with a 14 day standby), on the basis of one new de¬
benture for each 22 shares then
held; rights to expire
on
or about
Dec. 4.
Price—To be supplied by amend¬
ment.
Proceeds—For general corporate
purposes,
in¬
cluding the reduction of indebtedness.
Office
4401

(par 10 cents). Price—$3 per share. Proceeds—For
automation of operations;
working capital; additional
equipment and machinery and research and
develop¬
ment. Office—147-12
Liberty Ave., Jamaica, N. Y. Un¬

York.

market

Life Insurance Co.

Great Western Financial
Corp. (11/20)
19 filed $9,998,800 of convertible subordinated

stock

purposes.

Milwaukee, Wis.
New

Inc., *502 Gettle Bldg., Ft. Wayne, Ind.

common

$4,000,000, with the balance to be

corporate

Offering—Expected sometime after Jan. 1,

Oct.

Products Corp.

(letteriafeiJnptiiication) 99,000 shares

mate

price. Price—$3 per share. Proceeds—«
For expansion.
Office — 119 W. Rudisill Blvd., Fort
Wayne, Ind. Underwriter — Northwestern Investments,

spare

stock

common

Price—To be related to the market
price of outstanding
on the American Stock
Exchange at the time of
the offering.
Proceeds — In part to repay
outstanding
unsecured short-term bank
loans, expected to

;

counter

and

shares

vember, 1959. The unsubscribed shares are to be offered
to the public through the underwriter
at not less than
the subscribed price nor more than the
highest over-the-

—

loans

Harnischfeger Corp.

stock

•

Proceeds—For reduction of bank

Aug. 28 filed 200,000 shares of

(letter of notification) 99,236 shares of common
(par $1) to be offered for subscription by stock¬
holders of record, on the basis of one new share for
each 2% shares held. Warrants are to
expire during No¬

to

Gateway Airlines, Inc.
Aug. 31 filed 400,000 shares of common stock (par 10
cents), Price—$1.50 per share. Proceeds
For general
corporate purposes, including the purchase of airplanes,

•

Products, Inc.

Great Northern

California, with
working capital. Office —
17315 Sunset Boulevard, Pacific
Palisades, Calif. Under¬
writer—Hill, Darlington & Co., New York City. Offering
—Expected sometime during the middle of December.
the

to be offered

corporate purposes including new plant and
equipment.
Office—Westbury, L. I., N. Y. Underwriter
—Milton D. Blauner &
Co., Inc., New York City.
*

buy the underlying stock at $2.50 per share
during the life of the warrant. The expiration date of
the warrant is Feb. 25, 1961. The price of the warrant
,is.at thq lpprket. Proceeds—In the first instance, to the
warrant'holders; if they convert, Granco's treasury will
receive $2.50 per share.
Office—36-17 20th Ave., Long
Island City, N. Y. Underwriter—John R. Boland &
Co.,
Inc., New York City.

For

issuing company
are

general

and

1960. ™

$1).

stock

shares

common

conversion.

Co., Inc., New York.

Chicago, 111.

common

President, Sidney Harman., Of the
remaining, 20,000 are being regis¬
tered' under a restricted stock
option plan, 4,000 are
being reserved for key employees pursuant to stock
options, and 92,400 are being reserved for debenture
116,400

Lakes Bowling Corp.
Aug. 31 filed 120,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes, including the
development
of
bowling lanes, bars, and restaurants on various
Michigan properties. Office—6336 Woodward Ave., De¬
troit, Mich. Underwriter—Straus, Blosser & McDowell,

of. Western States
Refining Co. Office—4040 E. Louisiana Avenue, Denver,
Colo.. Underwriters—J. A. Hogle &
Co., Salt Lake City,
Utah, and Garrett-Bromfield & Co., and Peters, Writer
& Christensen. Inc., both of
Denver, Colo.

80,000 shares of the

for the account of its

Great

stock

common

share.

of

rants

Summit.

—

per

due

to be offered for the account of the

and

(letter of notification) 42,860 warrants and 60,000
common
stock (par 50 cents). The stock is
underlying the warrants, and the purpose of the filing
was to. permit the warrant holders
to'exercise their warshares

...

.

,

10

Oct. 21

.

two weeks.

&

Granco

Dunkirk, N. Y.
f
July 29 ,jClqtter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2
per share.- Proceeds—

Securities, Inc., New York. Offering—Expected^ in about

(par

Underwriter—Arnold

Malkan

Pickle Co.,

For general
corporate purposes.

stock

tainment field, and the provision of
funds for a down
payment on another building or buildings. Office—807
E. 175th Street, New York, N. Y.

\r

*

Price—$1

common

Proceeds—For general cor¬
porate purposes, including the purchase of additional
studio equipment, investing in
properties in the enter¬

"pegged to retire short-Office—Lakeland Fla.Underwriter

(11/30)
$600,000 of 6V2% subordinated convertible
December 1969, and 196,400 shares of
stock (par 25
cents), of which the debentures

22 filed

debentures
are

Sept.

may

Harman-Kardon, Inc.

Oct.

common

Gold Medal Studios, Inc.
18 filed 500,000 shares of

purposes,

be- expended for additional facil¬
ities, and that about $87,500 will
term 'bank

•

Office—212 Durham
Ave.,

Underwriters—Lehman Brothers and
Co., both of New York City.

G. H. Walker &

purposes.

(par

$1).

of which $250,000

general corporate purposes.

Metuchen, N. J.

equipment

• Florida THe Industries, inc.
Nov. 12 filed 89,285 shares oi class A

tional

underwriter; and the remaining 50,000 shaues are pur¬
Price—$1.25 per
debt; purchase of

chasable upon exercise of the warrants.
share. Proceeds—For repayment of

35

Co.; to furnish operating capital for subsidi¬
aries; and to establish new subsidiaries or branches of
already existing ones. Office—10202 North 19th Ave.,

Phoenix, Ariz.

Underwriter—The underwriters, if any,

will be named by amendment.

Integrand
Oct.

13

Corp.
85,000 shares of
per share. Proceeds

filed

'

,

stock (par sc).
Price—$4
— For
general corporate
purposes, including the redemption of outstanding precommon

Continued

on page

36

36

The Commercial and Financial Chronicle

(2128)

Continued from
ferred

stock

equipment.

plant

new

Office—West-

bury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass.
Intercontinental

Ltd.

Metals,

stock (par 10c).
Price—$3 per share. Proceeds—To be added to working
capital in order to enable company to exercise optionson motels and/or parcels of land.
Office—Martinsville.
Va. Underwriter
G. Everett Parks & Co., Inc., 52
Oct. 7

filed

133,000 shares of common

—

New York City.

Broadway,
time

Offering—Expected some¬

after Nov. 25.

Inter-Island

Resorts, Ltd.

•Sept. 10 filed 99,000 shares of common stock (par $3) be¬
ing offered first to stockholders on the basis of one new
share for each four shares held of record Oct. 10, 1959;
rights to expire on Nov. 30. Price—$5.50 per share.
ceeds—For construction of a new hotel at Kalapaki
on

the Island of Kauai. Office—305 Royal

Pro¬

Washington, D. C.
notes (series B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4% p«
unit; and series D, $3,500,000, 6-year, 5% per unit). Pr!<w
International

Bank,

Dec. 29 filed $5,000,000 of

Proceeds — For working
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
—100%

of principal amount.

if Investors Counsel, Inc.
Nov. 2 (letter of notification) 300,000 shares of common
class A stock
(non-voting). Price—At par (one cent
per share).
Proceeds—For general corporate purposes.
Office—20 Exchange Place, New York 5, N. Y. Under¬

,

writer—None.

'

-

•

Investment Trust for the Federal Bar Bldg.

i

Aug.

14 filed

Beneficial

500

Trust Certificates

in the

Trust. Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H

St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of

Washington, D. C., and Swesnick & Blum Securities
Corp.
v
...

..

Irando Oil & Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can
Underwriter
Laird & Rumball, Regina, Sask., Can
—

Israel Development Corp.
Sept. 22 filed 200,000 shares of common stock (par $25).
Price—$27.50 per share, payable in cash or State of Israel
Independence Issue or Development Issue bonds.
Pro¬
ceeds—For general corporate purposes. Office—17 E. 71st
Street, New York City. Underwriter—None.
E

Nov.

Plastics

12

filed

72,500 shares of

of which 42.500 shares

of the

are

Life Insurance Co. of Florida

common

stock

(par

10C),

to be offered for the account

shares

of

a

like number of warrants to buy the common stock

issuable by

at

$2.50

per

the company

upon

the exercise

share from 11/1/59 to 11/1/61. Price—The

public offering price will be

supplied by amendment.
Proceeds—For working capital. Office—Yonkers, N. Y.
Jocelyn-Varn 1960 Oil Associates
/Sept. 28 filed 100 units of oil and gas exploration agree¬
ments. Price—$20,000 per unit. Proceeds—For locating,
developing, and administering oil and gas producing
properties.
Office—310 KFH Building, Wichita, Kan.
*

if Kennesaw Life & Accident Insurance Co.
Nov. 12 filed 331,836 shares of common stock, to be
offered to the holders of the outstanding common stock
the basis of

/Price—To

be

one

new

supplied

share for each four shares held.

by

amendment.

Proceeds—For

general corporate purposes.
Office—165 Luckie Street,
Atlanta, Ga. Underwriter — The Robinson - Humphrey
Co., Inc., Atlanta.

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares of common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,000 shares. Price—Of 30,717 shares, $115 each; and of
^31,000 shares, $116 each. Proceeds—To selling stock¬
holders.
Office—Anchorage, Ky. Underwriter—None.
(W. S.) 1960 Co.
$3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.
Kilroy

June 8 filed

•
Kittanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common stock, to be of¬
fered by subscription to holders of outstanding common

etock
each
on

on

the basis of approximately 0.212 new shares for
held on Nov.
14, 1959; rights to expire

share

Dec.

15,

1959.

Price—$25 per share. Proceeds—In
impart to repay a bank loan in the amount of $450,000 representing funds acquired for general modernization, im¬
provement, and expansion. Underwriter—None.

*

i

tIt Land Bank of France (12/9)
-1 Nov.
18 filed $50,000,000 of guaranteed external loan
bonds

due

1979.

The




bends

are

to

be

unconditionally

For

general

Securities, Inc.,
Washington 6, D. C,

Missouri
Oct.

Connecticut Avenue,
//

1028

N.

Boston

Nov.

.

with

•

then held.

general

$10

purposes,

(12/1)

(par 10 cents).
For working capital.

Co., New York, N. Y.

Medical

Products

stock and 25 warrants.

Corp.

per

if

Financial

—For

Richards

Statement effective

&

Oct.

Co., Inc.,
26.

16

filed

(par $1).

400,000

Price—$5

shares

of

the

•

27

bentures,
50

shares

fered

filed

to

class

A

common

stock

common

per

Underwriter—None.

(12/2)
29,534 shares of common
of

the

outstanding

stock of record Dec. 2

share for

each

Proceeds

„

Hess, Inc. (11/23-27)
!'
$5,318,800 of convertible subordinated de¬
1, 1984, to be offered to common
the basis of $100 of debentures for each

Oct.

on

held

on

or

or

on

about

about Nov.

8.

Dec.

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland. Fla.
Underwriter—

April 20

on

For

stock.

new

R. F. Campeau

National

Water Co.

holders

face amount.

20, 1959; rights to ex¬
Price—To be supplied by
amendment. Proceeds—For general corporate purposes,
including the possible increase of investment in the is¬
suing company's life insurance subsidiary. Office—14th
Avenue and Swift Street, North Kansas City, Mo. Un¬
derwriter—Stern Bros. & Co., Kansas City, Mo.
ppire

amended.

30

Price—At

funds

Bellas

due

stockholders

homa

Oct.

$300,000 of 6%% convert¬

debentures, series A, due Oct. 1, 1969.

converted.

filed

mon

Middlesex

Infante, Inc.,

Corp.

general

National

Oct.

share.
Proceeds—For general
corporate purposes, including the reduction of indebted¬
ness, acquisition of properties, and additional working
capital. Office—500 Mid-America Bank Building, Okla¬

City, Okla.

&

National Citrus Corp.

Mid-America Minerals, Inc.

Nov.

Kahn

of the company. Office-^-c/o
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
Un¬
derwriter—Eastern Investment Corp., Manchester, N. H.

per

Adviser—Hill.

Jefferson

are

debentures

An additional 138,000 shares may be issued

Angeles, Calif.

S.

convertible at any time through Oct. 1,
1968 into class A non-voting common stock (par $5) at
the rate of 100 shares of such stock for each $500 of

Debentures

company's restricted stock option
unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter
Los

common

/

(letter of notification)

ible subordinated

in connection with the

—None.

9,000 shares of

Underwriter—Heft,

Y.

N.

Oct. 6

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com¬

Price—$10,500

con¬

Roanoke, Inc.

(letter of notification)

Mutual Credit

Proceeds—For general corporate
purposes,

plan.

10-year subordinated

due

stock

common

Hempstead, N. Y.

the

shares.

/

(par 20 cents). Price—At-the-market. Proceeds—

Islip,

Price—$275

-

Corp;- (12/7-11)

if Munston Electronic Manufacturing Corp.
.9 (letter of notification) 50.000 shares of common
(par 10 cents). Price—$6 per share. Proceeds—
For general corporate purposes.
Office—Beech Street,

sales

mon

$600,000 of 6%

debentures,

•

,•

,.

stock

includ¬
discharge of indebtedness, the expansion of
efforts, and for working capital. Office—79 Madison
Avenue, New York City. Underwriter—General Invest¬
ing Corp., New York.
ing

: /.."

Nov.

Offering

filed

common

■

.

Machines

go to selling stockholders. Office—144
St., Roanoke, Va. Underwriter—None.

common

200,000 shares of common stock (par 10
cents) and 50,000 one-year warrants for the purchase of
such stock at $3 per share, to be offered in units of 100
unit.

/•„.•,

To

(11/23-27)

shares of

filed

28

stock

day.
Electro

29

Oct.

Price—$3 per share. Proceeds—
Office—964 Dean St.. Brooklyn.

Underwriter—Lee

:

Motel Co. of

Bldg., Augusta, Ga. Un¬
derwriter—Johnson, Lane, Space Corp., Atlanta, Ga.

stock

.

waukee, Wis.

Masonic

Metropolitan Telecommunications Corp.
Sept. 28 (letter of notification) 99,933 shares of

;

Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,000 shares of common stock (par $10) in
joint registration with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage
common and one share of Guaranty common. Proceeds—
Mortgage will use its proceeds fo rexpansion; Guaranty
will use its proceeds
for additional working capital.
Office—(of both firms) 606 West Wisconsin Ave., Mil¬

Oct. 26 filed 160,000 shares of common stock (par
$2.50).
Price — $7.80 per share. Proceeds — For new production
Office—415

Inc.

$3,500,000 of 6%

a

including expansion and working capital. Office—4383
Boulevard, Los Angeles, Calif. Underwriter—
Co.

program.

chinery and be used as working capital. r Office — 944
Halsey Street, Brooklyn, N. Y. Underwriter—Myron A.
Lomasney & Co., New York.

None.

& Tile

construction

To liquidate indebtedness in the amount of $150:000,
with the remainder to purchase new equipment and ma¬

Bandini

Brick

bonds,-due
funds, to be

1969, and 30,000 outstanding
(par 40 cents): Price—For" the
debentures, 100% of principal amount; for the common
stock, at a price to be related to the market. Proceeds—

one

—

'

vertible

$1), to

Price

corporate

general

bank loans incurred in

Underwriter—Dempsey-Tegeler & Co., St. Louis,

shares of

Mayfair Markets

16

to

company's

Mohawk Business

Oct.

Office—Boston, Mass.

Proceeds—For

the

Airlines

filed

9

N. Y.

Underwriter—None.

Oct.

added

Corp.; White, Weld & Co. Bids—Expected to be
(EST) on Dec. 9.

Mo.,//

^Massachusetts Investors Growth Stock Fund
Nov. 16 (by amendment) filed 1,000,000 additional shares
of capital stock ($1 par). Proceeds — For investment.

any

be

corporate purposes, inclu ding debenture redemption, air¬
plane equipment, and working capital.'/Office—Utica/

public. Price—To stockholders,
$2.70 per share; to the public, $3 per share. Proceeds—
To pay a note, purchase land and to construct a build¬
ing. Office—9929 Manchester Road, St. Louis 22, Mo.

share for each five shares

Secu¬

convertible subordinated
debentures, due 1974, $1,917,500 of which are to be of¬
in exchange for a like amount of the company's
outstanding 5^^"convertible subordinated debentures,,.
due 1966.
The remainder/ plus any not taken in, the
exchange offer, are to be publicly offered. Price.—To
be Supplied by amendment. Proceeds — For general

and the remainder to the

of

Oliver

fered

share for each two shares held,

Oct. 1 filed 301,177 shares of common stock (par
be offered to holders of such stock on the basis

5

received up to 11 a.m.

Corp.
® V." - '•
(letter of notification) 100,000 shares of common
stock (par $1) to be offered for subscription to stock¬
one

—

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

W.,

.:

Office

Light Co. (12/9)
$4,000,000 of first mortgage

Froceeds—To

connection

Oct. 22

—Expected

purposes.

2,

Power &

filed

29

1989.

Manchester Insurance Management & Investment

N. Y.

corporate

Newark

Mohawk

facilities.

150,000 shares of com¬
Price—$2 per share. Proceeds

cent).

N. J. Underwriter—Pleasant
rities Co., 392 Broad Street, Newark, N. J.
Street,

(11/30-12/4)

★ Magna-Bond, Inc.
(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For
general corporate purposes.
Office—1718 S. 6th
Street, Camden, N. J. Underwriter—American Diversi¬

Micronaire

Johnny-On-The-Spot Central, Inc. (12/15)
Oct. 28 (letter of notification), 30,000 shares of common
stock (par 25 cents). Price—$5 per share. Proceeds—For
general corporate purposes. Office — 830 Central Ave.,
Scarsdale, N. Y. Underwriter—Richard Bruce & Co., Inc.,
New York, N. Y.

stock (par one

mon
—

Nov. 9

Underwriter—None.

on

if Minitran Corp.
30 (letter of notification)

M. & S. Oils Ltd.

Merry Brothers

balance to Majestic Mortgage Co. due
the issuing company's acquisition of

with

Oct.

•

Underwriter—None.

the $1,360,000

used to retire certain short-term

fied

(12/14-18)

outstanding stock of Majestic Savings & Loan
Association, with about $650,000 to be used for capital
contributions to its savings and loan associations and for
loans to other subsidiaries, $51,000 to be used to repay
principal and interest on a short-term bank loan, and
$55,000 to be used as additional working capital. Office
—2015 13th Street, Boulder, Colo.
Underwriters—W. R.
Staats & Co., Los Angeles, Calif., and Boettcher & Co.
and Bosworth, Sullivan & Co., Inc., both of Denver, Colo.

May 11 filed 390,000 shares of common stock. Price—60
per share.
Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities Ltd., Regina, Saskatchewan, Canada.

share.

Corp.

250,000 shares of common stock (par $1).
be
supplied by amendment.
Proceeds—To

in connection

cents

new

Financial

Thursday, November 19, 1959

all of the

Sept. 28 filed 203,476 shares of common stock (par $1).
Price—$4.50 per share. Proceeds—For expansion. Office
—2546 S. W. 8th St., Miami, Fla. Underwriter—Plymouth
Bond & Share Corp., Miami.

holders at the rate of

.

.

filed

9

Price—To
pay

present holders thereof and 30,000 shares repre¬

sent

Midwestern

Nov.

Lenahan Aluminum Window Corp,
July 28 filed 157,494 shares of common stock (par 50c),
being offered for the first 15 days of the offering on a
pro
rata basis, to stockholders on the basis of one
new
share for each two shares held, on Nov. 2, 1959;
rights to expire on or about Nov. 20. Price—$4 per share
to stockholders; $5 to public.
Proceeds—For inventory
and for working capital.
Office—Jacksonville, Fla- Un¬
derwriter—Plymouth Bond & Share Corp., Miami, Fla.

per

Manufacturing Co.

to payment of principal

as

the Republic of France., The

Bay,
Hawaiian Ave.,

Honolulu, Hawaii. Underwriter—None.

•

and interest by
bonds will not be redeem¬
able prior to Dec. 15, 1969 except by operation of the
sinking fund, which will begin in 1964 and is designed
to retire the entire issue by maturity. Price—To be sup¬
plied by amendment. Proceeds—The net dollar proceeds
will be added to the foreign exchange reserves of the
Republic of France. Underwriters—Morgan Stanley &
Co. and Lazard Freres & Co., both ol New York.

.guaranteed

35

page

and

.

stock, to be of¬

preferred

the basis of

and/or

one

new

three

preferred or common shares then
held. Price—To be supplied by amendment. Proceeds—
To repay bank loans incurred for construction
purposes,
with

the balance to be used for general
corporate pur¬
poses. Office—52 Main St., Woodbridge. N. J.
Under¬

writer—Kidder, Peabody & Co., Inc., New York.

1

Co., Inc., Detroit, Mich. Statement to be

Industrial

Minerals

Ltd.

stock (no par).
Proceeds — To retire indebt¬
edness for construction of plant and for other liabilities,
and the remainder will be used for operating capital.
Office
Regina, Saskatchewan, Canada. Underwriter—
Aug. 4 filed 150,000 shares of
Price

—

$1

per

common

share.

—

Laird

&

Rumball

National

Ltd.,

Regina, Saskatchewan, Canada.

Motels, Inc.
Oct. 23 (letter of notification) 3,500 shares of common
stock (no par). Price — $75 per share.. Proceeds —For

Volume

190

Number 5900

.

.

The Commercial and Financial Chronicle

.

(2129)
guarantee of

lease of Howard Johnson Motor

a

Prince Georges

quisition of

County. Md., operating

third

a

motel.

Longmeadow, Mass.

tional

Lodge in

expenses and ac¬

Office—59

S.

National

Underwriter—None.

mine
the

York.

employees.

ment

For

a Puerto Rican
manufacturing company affiliated
with National Video Corp.
Price — To Be supplied by
amendment. Proceeds—Tc selling stockholders. Office—

•

New

Underwriter

England

Power

Bache

—

Co.

to 11
•

New

Oct.

to

York

Co., New York.

State

&

be

First

Gas

held.

Price—$2

edness with

capital.
more

share.

per

the

security

dealers

will

be

shares

any

•

28

shares
stock
will

stock

purchase

warrants

warrants

to

(par

cents).

10

purchase

with warrant for
attached.

Oak

June

shares

Sewerage Co.
(letter of notification)

of

common

stock

Philadelphia,

(11/23-27)
$145,oou

oi

5¥2%

Pa.

mortgage bonds series of 1958.
construction

Oak
of

Valley,

the

Price—At

Inc.

water

portion

a

supply

and

par.

of

first

Underwriter

cost

distribution

oi

sys¬

—

Bache

&

Co.,

Philadelphia,

Pa

Occidental Petroleum Corp.
Oct. 29 filed 615,854 shares oi common

stock (par 20
cents), 307,927 shares of which arc to be offered for sub¬
scription by holders of outstanding common stock at the
rate

of

one

new

share

for each

10

shares held.

The

re¬

maining shares

ore to be offered to a group of individ¬
uals, not as yet named, who have agreed to
purchase not
less than 307,925 shares, and will also be offered shares

not

bought by the holders of

the

outstanding

common.

Price—To

drilling,
interest

be supplied by amendment.
Proceeds—For
exploration, development, and to purchase an

in

Parker

Boulevard, Lcs

Petroleum

Angeles,

Co.

Calif.

Oil, Gas & Minerals, Inc.
April 2 filed 260.000 shares of
cents

Price—$2

per

&

about

share.

Office—8255 Beverly
Underwriter—-None.

Pan-Alaska

it

subscribed

for

now

owns.

Underwriter—Any

stock

Proceeds—To

(par

retire

3?

bank

Office—513 Interna¬

Porce-Alume, Inc.
3 (letter of notification)

Aug.

•

for

company

Blair

—

of

&

each

$500

of

debentures).

Co., Inc., New York. Offering—

indebtedness,

Freed,

Permian

Inc.*

New

—For

Pearson, Murphy & Co., Inc., New York.
Porter-Cable Machine Corp.
(letter of notification) * 10,910 shares of common/
stock (par $10) to be offered in
exchange for all of the
Oct. 23

outstanding stock of Rototiller, Inc. The exchange offer
expires at 3 p.m. (EST) on Dec. 1, 1959. Office—700 Mar-,
cellus St., Syracuse, N. Y. Underwriter—None. • »

and

the

provision

of the
option to

York.

Offering—Expected

in

Co.

(11/24)

Price—To be supplied by amend¬

Proceeds—For general corporate purposes. Office
Texas St., Midland, Texas.
Underwriter-

West

Lehman

Brothers, New York.

Perrine
26

nated

$500

Industries, Inc.

filed

(11/23-27)
$1,500,000 of 20-year convertible subordi¬

debentures

and

$1,000.

to establish two

due

1979,

be offered in units of
Proceeds—To be used

to

Price—At par.
new

plants in the midwest and southeast

industrial areas; to spend $350,000 to equip these new
plants; $150,000 to further equip and improve the com¬
pany's Brooklyn plant; and $600,000 will be used to re¬
tire
&

coroorate

indebtedness.

Underwriter—S.

D.

Fuller

Petroleum

Project?
Oct. 13 filed $1,500,000 of participations in oil and
gas
exploratory fund. Price — The minimum participation
will cost $10,000.
Office—Madison, N. J. Underwriter—
Mineral Projects Co., Ltd.
Piedmont Natural Gas Co.,
22 filed 36,237
shares of

Oct.

preferred
common

basis of

be

stock

(without

stockholders

of

par

Inc. (11/20)
cumulative convertible

value), to be offered to
Nov. 20, 1959, on the

record

share of preferred stock for each 35 of
stock then held; rights to expire on Dec. 7. Price

one

Electric Power Co.

(11/23)

/

Nov. 2 filed

$15,000,000 of first mortgage bonds, due Dec..
1, 1994. Proceeds—For construction. Underwriter—To be-

determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Smith Inc.. White. Weld
& Co., and Salomon Bros. & Hutzler
(jointly). Bids—
Expected to be received
Producers
March

Fire &

up

to 11

(EST)

a.m.

on

Nov. 23.

Casualty Co., Mesa, Ariz.

filed

31

400,000 shares of common stock to be
subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain1
offered

agents

for

brokers

and

Price—$5

of

Producers

share.
Underwriter—None.

Fire

Proceeds—For

per

&

Casualty Co,
capital

working

Prudential

Commercial Corp.
(letter of notification) 150,000 shares of common
(par one cent). Price—$2 per share. Proceeds—

Oct. 21

general corporate purposes. Office—City of Dover,
County of Kent, Del. Underwriter—All State Securities,1
Inc., 80 Wall Street, New York, N. Y.
Puerto

Rico

Industries, Inc.
48,500 shares of class A common stock,;
(par $1), 200,000 shares of class B common stock (par $1)
and $388,000 of 6% subordinated
debentures, due July

Oct.

filed

15

With the exception of 151,500 shares of class B

1, 1971.

allocated

common

the securities

par,

the

to

organizers of the company at
to be offered to the public in units

are

of

$4,000 of debentures, 500 class A shares, and 500 class
Price—$5,000 per unit. Proceeds—For invest¬
ment in the securities% of its
subsidiary, Puerto Rico,

B shares.

mated

Packing Co., Inc., which will use the funds, esti¬
at $600,000, as operating capital.
Address—P. O.

Box No.

622, Little Rock, Ark.

Underwriter—None.

Quaker Maid Restaurant System, Inc.
(letter of notification) 179,920 shares of common
stock. Price
At par ($1 per share). Proceeds — For
equipment, supplies, leasing restaurants and working
capital. Office—Cohen Bldg., Norton, Va.
Underwriter
Oct. 26

—

—None.

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds
For general corpo¬
rate purposes. Office—1202 Myrtle
St., Erie, Pa. Under¬
—

—

writer—John

Expected in

G.

Cravin

&

Co., New York.

Offering-

couple of weeks.

a

• Radiant
Lamp & Electronics Corp.
Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
vertible sinking fund debentures, series II, due Oct.
15,

1969, and 120,000 shares of class A stock (par 10 cents).
For debentures, 100% of principal
amount; for
stock, $5 per share. Proceeds—To acquire Radiant Lamp
Corp., of Newark, N. J., with the balance to be used aa
working capital. Office—40 Washington Place, Kearney,

Price

—

Underwriter—Amos Treat &

Offering—Expected

Co., Inc., New York,
late'December.

in

Realty Investment Associates, Inc.
30 (letter of notification) 3,000 shares of capital
stock with a minimum
subscription of 50 shares and a
maximum of 500 shares. Price—At par ($100
per share).
Proceeds—For working capital. Office—1104
N. Main
St., Randolph, Mass. Underwriter—None.
Oct.

•

Red

Fish

Oct. 22

Boat Co.

(12/10)

(letter of notification) 400,000 shares of class A
stock

(par 10 cents). Price—75 cents per share..
payable, purchase
materials, expand production facilities and expan¬

common

Proceeds—To pay mortgages, accounts
raw

sion

of

sales

glass boats.

program.

Business—Manufactures

Address—P. O.

Box

610

fiber¬

Clarksville, Texas.

Underwriter—R. A. Holman & Co., Inc., New York, N. Y.
Renewal

Co., New York.

—To

Potomac

N. J.

Oil

to be pffered in units.

Oct.

300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
expansion. Officer-Alliance, Ohio. Underwriter—

stock

mon

Meat

30 days.

common

common

loans and for investment purposes.




of

Oct. 14 filed $300,000 of subordinated 6% debentures due
Nov. 1, 1969 and 100,000 shares of commonstock (par $1)

Proceeds

the

tem; to pay the cost of a new 12 inch well to increase
the company's supply of water; and to
pay the costs anc
of financing.
Office—330 Main St., Mantua
J.

shares

Pathe

—611

expenses

N.

Pan-Alaska

issuing

ment.

Valley Water Co. (11/23-27)
June 30 (letter of notification; $125,000 of 5¥2%
repay

two

a

be

the

ris

firs;

Price—At par.

Oak

—To

cents

$173,000 cash required upon the exercise of an
purchase the building at 245-249 W. 55th St., New York.
Office—245 W. 55th Street, New York.
Underwriter—
Hilton Securities, Inc., formerly Chauncey,
Walden, Har¬

,

•

of

and

reduction

Proceeds
a portion'of the cosi of
construction of sewerage collection and
disposal system
and to pay the costs and expenses of financing.
Office
—330 Main St., Mantua, N. J.
Underwriter—Bache &

Co.,

of record Oct. 29 offered its stock¬

purchase

News, Inc.
Sept. 17 filed 400,000 shares of common stock (par 10
cents) with warrants to purchase an additional 100,000
common
shares at $3.25 per share. Price — $3.75 per
share, with warrants. Proceeds—For general corporate
purposes, including the addition of working capital, the

to Oak Valley, Inc.

repay

20

Underwriter

Price—$1,020 per $1,000 debenture
purchase of 100 shares of common stock

mortgage bonds series of 1958.

—To

at

to

Temporarily postponed.

1,

Valley

30

rights

corporate purposes. Office—26 Jefferson St., Passaic, N. J.

$250,000 of 7% sub¬
1969 v/ith common
entitling the holders of the
Oct.

to conduct its.
insurance business in States other than
Illinois, the sole
State in which it is
presently licensed. Office—222 W.
Adams Street,
Chicago, 111. Underwriter—None. State¬
ment effective Nov.4.

For
common

Price—100% and accrued interest from Oct. 15. Proceeds
—For construction, equipping, and placing in operation
a
new plant, with the balance to be used for
general

Minneapolis, Minn.
•

connection

of

working capital. Office—Min¬
Underwriter—Woodard-Eiwood & Co.,

Minn.

to

Pantasote Co.

Proceeds—For

neapolis,

be

Aug. 28 filed $2,700,000 of 6% subordinated sinking fund
debentures, due Oct. 15, 1974 (with warrants attached en¬
titling the holder to purchase 50 shares of common stock

•

25,000

in

loaned

,.

notification)
due

borrowers

be

by holders of Marine Drilling
publicly offered by Crerie Co., Houston, Texas
and Clark, Landstreet &
Kirkpatrick, Inc., Nashville,
Tenn., at a price of 20! cents a share,

noi

Industries, Inc.
of

Prices—To

capital stock to
issued pursuant to options held by Marine
Drilling,

of

debentures

11/30/62.

Proceeds —To

individual

share, for each share of Marine
Drilling stock. These rights expire on Nov. 20. Marine
Drilling also plans to sell 250,000 shares of the 680,000

Inc.

(letter

before

amendment.

Latter company

including the enabling of the issuing

company to make application for licenses

stock

common

(letter oi notification) 120,0G0 shares of common
(no par). Price—$2 per share. Proceeds—For de¬
velopment, purchase, parts for production, and additional
working capital. Office—1721 Senulveda Blvd., Man¬
hattan Beach, Calif.
Underwriter—Holton, Henderson &
Co., Los Angeles, Calif.

Sept.

warrant

a

common

and

of

estate.
Office—4026 30th Street, San Diego,
Underwriter—J. A. Hogle & Co., Salt Lake City,

holders

stock

ordinated

by

common stock
($1
$1,000 principal amount
entitling the holder to buy

units

7 filed 2,612,480 shares of

Inc.

Nov. 4

Nu-Line

675,000

Pan-Alaska Corp.

be

/•purchase material and for working capital. Office—20i3
S. Oliver, Wichita, Kan. Underwriter—None.

ic Nova-Tech,

purposes, possibly

real

Aug.

7,863 shares of common
($25 per share),
Proceed; — To

par

notes,

Utah.

Northeastern Gar, Inc,
Nov. 9 (letter oi
notification)
Price —At

of

builders

with

subscribed for at $2 per share.

stock.

shares

Calif.

be used as working
Underwriter—One oi

offered

be offered in

supplied

to

any,

to

home

shares for each five share*

Office—Matthews, N. C.

attached, and 80,000 shares of

par),
100

Proceeds—To reduce indebt¬

balance, if

secured

rants

of debentures with

North Carolina Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, tc
be offered for subscription bv holders of
putstandin?
new

6%

of

.

Office—Ithaca, N. Y. Underwriters—
Corp., Lehman Brothers, Wertheim &
Lynch, Pierce, Fenner & Smith Inc.

stock in the ratio of two

$3,000,000

$56,000 for the war¬
' ; >
• Palomar Mortgage Co. (12/7-11)
Rov. 16 filed
$750,000 of 15-year 7% subordinated sink¬
ing fund debentures, due 1974, with common stock war¬

Boston

Merrill

filed

offered any shares unsubscribed for
by said stockholders.
per share. Proceeds — For general
corporate

Price—$5

—

rants.

To discharge short-term
obligations incurred for con¬
struction, with the balance to ne applied to expenditures

and

Office

rities Corp., acting on behalf of their
clients, for a total
of $1,344,000 for the notes and

Dec. 7. Price—To be supplied
by amendment. Proceeds—

Co.

re¬

sum

of record Now,20 on the basis of one new share for each
15 shares then held. The
rights are scheduled to expire

The

funds.

which 55,000 shares are to be offered
first to stock¬
holders of record Aug. 31, 1959, and 45,000 shares
(mini¬
mum) are to be offered to the public, which will also be

addi¬

The

stock purchase
warrants, and 675,000 shares of
stock. $1,600,000 of jfhe notes and
360,000 war¬
are to be offered to
holders of

rants

filed

for construction.

an

publicly offered.

$1,600,000 of out¬
standing notes.
The remaining $1,400,000 of new notes
and 315,000 warrants are to .be offered
to American Secu¬

M

Electric

purchased plus

so

PiEgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock
(par $1),

of

common

Corp. (11/20)
466.961 shares of common stock,
(no par),
offered to holders of
outstanding common stock

21

not

to be

are

common

&

(12/9)

Dec. 9.

on

1.

.

Lehman

(EST)

a.m.

Dec.

Pacific Uranium Mines Co.

bidding. Prob¬
Brothers; Equitable Securities
Corp.; Kidder, Peabody & Co.; Lee Higginson Corp.,
and White, Weld & Co.
(jointly); Merrill Lynch, Pierce,
Fenner & Smith Inc., and Eastman
Dillon, Union Secu¬
rities & Co. (jointly). Bids—Expected to
he-receivejMip
bidders:

general

Oct.-20

Nov. 2 filed 100,000 shares.of cumulative
preferred stock
(par $100). Proceeds—To reduce indebtedness. Under¬
writer—To be determined by competitive
able

after

166 Central
Ave., S. W.,
Atlanta, Ga. Underwriter—Johnson, Lane, Space
Corp.,
Atlanta, Ga.; Francis I. duPont & Co., New
York; and
The
Robinson-Humphrey Co., Inc., Atlanta, Ga. : .
.
i

eadorse-

evidencing an interest in a Trust which
|jfi|ghold
outstanding common stock of Rico Ele|Ponics,

Chicago, 111.

sometime

maining 120,000 shares, representing
outstanding stock,
are
also to be
publicly offered. Price—To employees,
$4.55 per share; to the public, $5
per share. Proceeds—

all of the

Inc.,

Any shares

tional 72,500 shares

(par $1).

an

Offering—Expected

• Oxford
Chemical Corp.
(11/30-12/4)
Oct. 22 filed 227,500 shares of class A
common stock
(par
25 cents), of which
35,000 shares are to be offered first to

I
stock

Corp., Detroit, Mich.

filed

150,000 shares of common stock (par one
Price—$6 per share. Proceeds—For research and
working capital. Underwriter—Sutro Bros. & Co., New

Underwriter—Palombi
City. Offering—Expected

Each certificate for class A shares will
bear

27

cent).

For general corporate purposes.
Securities Co., Inc., New York

National Video Corp. (11/23-27)
Oct. 19 filed 283,307 shares of class A

stop order should be issued suspending

a

offering.

Ovitron

Standard

day.-

whether

Oct.

Electronics, Inc.
Sept. 25 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—

any

Mart, New Orleans, La. Underwriter
Co., Inc., New Orleans, La. The SEC
a
hearing, to begin on Sept. 2, to deter¬
—

had scheduled

National Munsey Co.
Sept. 23 filed 293 limited partnership interests. Price—
$5,000 per unit. Proceeds—To purchase land and erect
buildings thereon. Office—535 Fifth Avenue, New York
City. Underwriter—Tenney Securities Corp. Offering—
Expected this month.
•

Trade

Assets Investment

Park Avenue,

37

new

supplied by amendment.

Proceeds—For repay¬

ment of notes incurred for construction
program.
write r—White, Weld &

Co., New York.

Under¬

Guaranty Corp.
(letter of notification)

Oct. 28

100,000 shares of common
(par $1). Price—$3 per share. Proceeds—For work¬
ing caiptal. Office — First National Bank Bldg., Suite

stock

2323,
ties

Denver 2, Colo. Underwriter—Columbine
Corp., Denver, Colo.

Reserve

Oct.

20

62,676
.161

Insurance Co.,

Chicago, III.
of capital stock, of which
to be sold for the company's account and 48,-

filed

are

Securi¬

shares

110,837

shares

to

sold

are

be

for

the

account

of

certain

Price—To be supplied by amend¬
Proceeds—To be added to the general funds of

selling stockholders.
ment.

the company to enable it to finance a larger volume of
underwriting and to expand its area of operations. Un/

Continued

on

page

28

38

The Commercial and Financial Chronicle

(2130)

G. Becker

& Co.

Offering

barge, mobile incinerators, working capital, etc.
Centre St., Roxbury, Mass. Underwriters-

Engineering Co.
(letter of notification) 22.609 shares of common
stock (par 75 cents) of which 7,799 shares are to ~be
offered to the employees of the company and the re¬
mainder to the public. Price—To employees, $12.83 per
share; to the public, $13.50 per share. Proceeds—To pay
outstanding bank loans and for working capital. Office
—4900 W. 78th St., Minneapolis, Minn.
UnderwriterWhite, Weld & Co., Minneapolis.
2

Price—S5

Corp.,

$5)

in exchange for the outstanding common
stock of Schmidt & Ault Paper Co. on the basis of
St. Regis shares for each Schmidt & Ault

share.

Office

Street, New York City.

filed

and

Cohn, & Shumaker, Inc., both of
& Co., Inc.,. of New York

Diego Gas & Electric Co.
Oct. 6, 1959 filed 500,000 shares of common stock
(par
$10) being offered for subscription by common stock¬
holders

the basis

on

of

one

share

new

for

9

*

a

Co.,

New

York.

Investment Co.

debentures.

,

shares then

Scaico

Controls, Inc.
(leter of notification) 240,000
stock (par 10 cents).
Price—$1.25

Sept. 23
mon

shares of
per

com¬

•

on
company-owned building sites. Office—
Washington St., Bloomington, 111. Underwriter
Co., St. Louis, Mo.

Oct.

development; increaese of plant
facilities; sales and training program; sales" promotion

'and

for

general corporate purposes. Office—P. O. Box
41, 450 Cooper St., Delanco, N. J. Underwriter—Albion

Securities
•

t

Co., Inc.,

Scott-Mattson

11

Broadway, New

York

4, N.

Y.

—

lotte, N. C.

stock. Price—At par
purposes.

Silver Spring, Md.

—None.

Statement withdrawn

on

60,000 shares of class A
($5 per share). Proceeds—

Office

—

8125

Georgia Ave.,

Underwriter—None.

•

Seligman & Latz, Inc. (12/4)
28 filed 250,000 shares of common stock
(par $1).
Price—To
be supplied
by amendment.
Proceeds—To
selling stockholders. Business—/The company operates
259 beauty salons in leased
premises in leading depart¬
ment and specialty stores.
Underwriter—F. Eberstadt &
Co., New York.
Ltd.

Sept. 8

(letter of notification) 95,000 shares of
capital
(par 10 cents). Price—$1.50 per share. Proceeds—

To purchase and install




manufacturing equipment;

con¬

common.

Tennessee

and

shall

cancelled.

have

East

been

purchased or
is presently

Tennessee

Office—Tennessee

Weld

Building,

Houston.

Dealer-,

Texas.

&

Co.,

both

of

York.

New

Statement

effective

Oct. 1.

(The)

T Transportation

filed

7

$600,000

of

7%

Plan,

Inc.
convertible

subordinated

debentures, due November, 1969, 60,000 shares of com¬
mon stock (par one cent)
and 30,000 common stock pur¬
chase warrants, to be offered in units consisting of $100
of debentures, 10 common shares, and 5 warrants. Price
—$150 per unit. Proceeds—For general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ross, Lvon & Co., Inc.,
New York. /

Tex-Tube, Inc.
6 filed 150,000 shares of common stock, (par $1),
of which 100,000 shares are to be offered for the account
of the issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price—To be supplied by
amendment. Proceeds
To discharge bank loans,' for
capital improvements, and to increase working funds.
Office—1503 North Post Road, Houston. Texas.
Under¬
writer—Moroney, Beissner & Co., Houston. Offering-—
Expected sometime in November.
:
Oct.

—

Timeplan Finance Corp.
8 (letter of notification)

Oct.

28,570 shares of cumula¬
stock (par $5) and 14,285 shares of com¬
mon stock
(par 10 cents) to be offered in units of one
share of preferred and one-half share of common. Price
—$10.50 per unit. Proceeds—For working capital. - Office
—Ill E. Main St., Morfistown, Tenn.
Underwriter—

tive preferred

Texas National

Corp., San Antonio, Tex.

Tower's IWsrts^

lnc«
^'
28 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce indebtedness bv about $300,000, with the balance
Aug.

to be

capital of the company and its
East Main Street, Rockville,
Underwriters—To be supplied by amendment.

added

to working

subsidiaries.
Conn.

Office—210

Transamerica
Nov. 9

Corp.

filed 832,000 shares of capital stock

(par $2), to

be offered in exchange for

the capilal stock (par $6.25)
American. Surety Co.„of N. Y., on the basis of two
shares of Transamerica* for three shares of Surety. The
of

is

conditional upon holders of 51% cf the Surety
accepting the exchange. Office—Montgomery St.
atUolumbus-Ave., San Francisco, Calif.

stock

the

rate

of

one

new

share for each five

shares

held

on

Nov.

4, 1959; rights to expire on Nov. 20. Price—To
supplied by amendment.
Proceeds — For payment

bank loans; for payment of a
note; for working
capital; for expenditures by Strategic-Udy Metallurgical
& Chemical Processes Ltd., which owns and operates
a pilot plant at Niagara
Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal subsidiary,
and by its other direct subsidiary, Strategic-Udy Pro¬
cesses, Inc., which owns and operates a laboratory at
Niagara Falls, N. Y.; as .working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D
Lunt & Co., Buffalo, N. Y.; and Allen & Co., New York
•

Shield Chemical

of East

offer

Nov. 10.

of

Oct.

stock

Mountain

Strategic Materials Corp.
June 29 filed 373,364 shares of common stock (par $1),
being offered for subscription by common stockholders at

be

• Seaboard Land Co.
Oct. 30 (letter of
notification)
For investment

•

(par $5),-f

Managers—Stone & Webster Securities Corp., and White,

14 filed

Farms,

Inc. (12/8-9)
Oct. 27 filed 67,500 shares of outstanding common stock.
Price —To be supplied by amendment.
Proceeds
To
selling stockholders. Office—Professional Building, Ft.
Pierce, Fla. Underwriter—R. S. Dickson & Co., Char¬

common

Storm

Ski Corp.
$225,000 of 6% to 7% first mortgage con¬
vertible serial bonds due 1965-1975, and 500,000 shares
of common stock (par $1). Price—For bonds, 100%; and
for common stock, $1 per share. Proceeds—For working
capital.
Office—Steamboat Springs, Colo.
Underwriter

share. Pro¬

ceeds—For research and

and

Underwriters—Amos Treats Co.. Inc.,.

negotiating for the sale of $5,800,000 of which 11-year
53/4% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the redemption of the 5.20% cumula¬
tive preferred stock.
Exchange offer was scheduled to
expire on Nov. 16, but has been extended to Nov. 20.

-

Stelling Development Corp.
June 8 (letter of notification) 300,000 shares of common
stock
(par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

Price—$9 per share. Office—416 Enterprise

Price

.

Oct.

fered

Bldg., Tulsa, Okla. Underwriter—None.

.

—
At *100% of principal
general corporate purposes in¬
debt reduction. Office—Amity-

1969.

-Proceeds—For

redeemed

restaurants

to five former stockholders in
exchange for out¬
standing capital stock of Rex Bassett, Inc.; 11,112 shares
will be issued upon
conversion, if any, of convertible

G%

Tennessee Gas Transmission Co.

par)

Proceeds—For

1700 West

com-^

This offer is subject to various conditions, one of which
is that all of the 5.20% cumulative preferred stock ($25

Industries

—White &

due

of

Gas Common for 2.75 shares of East Tennessee

commission of 50

today

Diego, Calif. Underwriter—Blyth & Co., Inc., New York and San Francisco.
it Savoy Industries, Inc.
Oct. 29 (letter of notification)
23,412 shares of common
stock (par 25 cents), of which
12,300 shares,will be of¬

of

- Corp.
" convertible subordinated ;•

Manufacturing

$750,000

Aug. 21 filed 473,167 shares of common stock

warrants

funds of the company. Office—San

shares
per

being exchanged for common stock of East Tennessee
Proceeds—For investment. Office "
Natural Gas Co. on the basis of one share of Tennessee
Underwriter — Capital Securities

held. The warrants are being mailed out
(Nov. 5) with rights expiring on Nov. 19.
These
are non-transferable.
Price—$4.62Vz per share
to stockholders; unsubscribed shares will be publicly
offered at $5 per share. Proceeds—For general corporate
purposes, including the developing of three drive - in

each

eight
shares held of record Nov.
4; rights to expire Nov. 24.
Pflee—$23.40 per share/Proceeds—To reimburse treasury
•

•

Shake, Inc.
Aug. 24 filed 65,505 shares of common stock, being of¬
fered by subscription by common stockholders of record
Sept. 15, 1959, on the basis of one new share for each

San

100,000

Price—$1.50

Truman, Wasserman & Co., Inc., both of New York City. Offering*—Expected in January,. 1960. /
:
~
;

shares.

Steak'n

City.

filed

16

ville, L. I., N. Y.

-

Underwriter—John Keenan & Co., Inc., Los Angeles.

Walston

(par 10 cents).

cluding,expansion

general corporate purposes,, in¬
cluding the purchase and installation of a modern paint
plant, and the purchase and installation of new tube mill
equipment. Office—4019 Modford St., Los Angeles, Calif.

Underwriters—Indianapolis Bond &

Share Corp. and Kiser

stock

and

$500,000 of 6% convertible subordinated de¬
bentures, due Oct. 1, 1974. Price—At 100% of principal
amount.

'

share. Pro-;,
ceeds—For general corporate purposes. Office—30 Main Street, Brooklyn 1, N. Yd Underwriter—Nbne.
• /
•

mon

Price—At market. Office—Amarillo, Texas. Un¬

State

Proceeds—To be used as working capital
and to reduce indebtedness.
Office—1720 East 38th St.,

Indianapolis,

it Tasti-Cup Coffee Corp.
9'(letter of notification)

•

Oct. 5 filed

amendment.

Indianapolis, Ind.

Reiner

' "

'

Nov.

amount.

Beryllium Corp.
Sept. 3 (letter of notification) 200,000 shares of common
stock (par one cent).
Price—$1.50 per share. Proceeds
—For working capital and general corporate purposes.
Office—150 E. 43rd St., New York 17, N. Y. Underwriter
—R. G. Williams & Co., Inc., New York, N. Y.

Sams & Co. (11/23-27)
88,000 shares of common stock (par $1),
of which 50,000 shares are to be offered for the account
Of the issuing company, and 38,000 shares, representing
outstanding stock, are to be offered for the accounts of
the present holders thereof.
Price—To be supplied by
21

/

Co."; Hartford,

stock on, or before Dec. 1,. 1969
Price—To be '
supplied by amendment. Proceeds—For additional work- ?■
ing capital.
Underwriters — F. Eberstadt '3c Co. and
White,. Weld & Co., both of New borK. *

debentures,

Standard

(Howard W.)

Oct.

their

of

v

&

filed

it Telechrome

derwriter—None.

to be offered

—150 E. 42nd

-

12

Nov.

2 filed 225.000 shares of common
stock, of which
15,000 shares are to be offered to employees of the issu¬
ing company and its subsidiaries, and 210,000 shares
represent outstanding stock held by previous stockhold¬
ers of Southwest Acceptance
Co., who may offer their

shares.

(par

sale

;

Andrews

common

Nov.

it St. Regis Paper Co.
stock

the

"best efforts" basis, with
share.

Southwestern

New York.

common

per

Leverton,

100%

267,325 shares of

common

• Southern Gulf
Utilities, Inc. (11/20)
Aug. 24 filed 135,000 shares of common stock (par 5c).
Price—To be supplied by amendment. Proceeds—For
general corporate purposes, including expansion. Office—
7630 Biscayne Blvd., Miami, Fla. Underwriter—Jaffee,

Ammonia

12 filed

with

on a

cents per

Nov.

on

Nov.

share.
Greenville, S. C.

—

filed

At

the

• Southern Growth Industries, Inc. r
/ •
■
12 filed 963,000 shares of common stock (par $1).

6, 1959; rights to expire on Nov. 23. Price
of principal
amount.
Proceeds — For
inventory accumulation with the balance, estimated
at $125,000, to be added to working capital.
Office—
South St. Paul, Minn.
Underwriter—White, Weld & Co.,
—

of

T.

(James), Inc. (12/7-12)
S15,0U0,000 of senior notes due 1979 and
$7,500,000 of capital nctes due 1979 and convertible into

Nov.

Products, Inc.
$1,249,849 of 10-year 6% convertible sub¬
ordinated debentures, due Dec. 1, 1969, being offered for
subscription by common stockholders on the basis of
$10 principal amount of debentures for each 10 shares
held

connection

Statement effective Oct. 15,

weeks.

Paul

in

dealers

300,000 shares are to be publicly offered. Price
share. Proceeds—For general corporate pur¬
poses, including moving to new quarters and installing
executive offices and sound studio facilities therein, ac¬
quiring technical equipment and machinery, and adding
to
working capital.
Office — 659 10th Avenue, New
York.
Underwriter—Hilton Securities, Inc., 580 Fifth
Avenue, New York.
Offering—Expected in three or
per

2

70%

E.

*Talcott

Underwriter—None, but the company officials, who are
making the offering,-may pay a 10%''comriiission to

of which

Oct.

retire

~

,

Nov.

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working
capital and to be used for the purchase of receivables
covering the installment financing of consumer prod¬
ucts or other types of financing in which the compahy
may engage. Office — 615 Ilillsboro St., Raleigh, N. C.

.

St.

Proceeds—To

—

Conn. Underwriter
Conn.

Southern Frontier Finance Co.

• Roulette
Records, Inc.
unof>V
m ; > /
Aug. 27 filed 330,000 shares of common stock (one cent),

Business—Electronics. Under¬
Lomasney & Co., New York, INT. Y.

Supermarket Service, Inc.
14 (letter of notification) 9,000 shares of common
stock (no par). Price—$11.50 per share. Proceeds—For,.
ma
i/ince
iUa. ii). iwaiii Sc., Piainville,

000; to add to working capital; to retire certain longterm indebtedness; and to develop citrus groves.
Office *
—250 South East First Street, Miami, Fla. Underwriter *
—Bear, Stearns & Co., New York. Offering—Indefinite.-

officials.

Rosemount

four

writer—D. A.

outstanding at the date of the stock offering; to
invest in the capital stocks of six ofbtjie company's
seven bank subsidiaries; to repay a bank loan of $6,400,-

Office—85

—$3.50

Ave., Flushing 55, N. Y.

stock

(letter of notification) 100,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To pur¬

Oct

for working

and

Oct.

amendment.

Corp.

Nov. 3

a

advertising

Sottile, Inc. (Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),
of which 1,543,000 shares are to be issued and sold for
the account of the company, and 457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be supplied by

—

Three company

equipment;

Colorado.

it Revere Fund, Inc., Philadelphia, Pa.
Nov. 10 filed 250,000 shares of capital stock (par $1).
Price
$13.50 per share. Proceeds — For investment.
Underwriter—Revere Management Co., Inc. InvestmentAdvisor—Revere Advisory, Inc.

chase

test

capital. Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen, Inc., Denver,

This

Inc., Chicago, 111.

offering will not be made in New York State.
—Expected this week.

'Ridall

and

trol

Continued from page 37
derwriter—A.

Thursday, November 19, 1959

...

Superior

Manufacturing

&

Instrument

Corp.

(11/23)
Oct.

12

(letter of notification) 80,000 shares of common
(par 50 cents).
Price—$3 per share. Proceeds—
For general corporate purposes. Office—154-01
Barclay
stock

Transcon

Petroleum & Development Corp.y '*'>•
Mangum, Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per snare).
Proceeds—
For development of oil properties.
Underwriter—First

investment Planning Co., Washington, D. C,_
Transitron
Nov.

6

Electronic

Corp.

(12 8

filed

1,000,000 shares of outstanding common
stock
(par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders..
Office—188 Albion
St., Wakefield, Mass. Underwriter — Merrill Lynch;
Pierce, Fenner & Smith Inc., New York City.
•

Trans-World

Financial

Oct. 26 filed 645,000

Co.

(11/30-12

3)

shares of common stock (par $1) of

which 42(1,000 shares are to be offered for the
the issuing company, and 225,000 shares are to

account of
be offered
for the accounts of the present holders thereof.
Price
To
be
supplied by amendment.
Proceeds — To
repay
bank loans on its own behalf and that of a
subsidiary, and to liquidate the unpaid balance for

—

Volume

the

Number 5B00

common-

ance

to-be.

.

.

The Commercial and

.

stock

of

a4

added

to

general

subsidiary,

with

r,

'funds.*

the

Offjce

Financial] Chronicle

:bal-

—

For general

8001

Beverly

Boulevard, Los Angeles, Calif. Underwriter—
Staats & Co.,- Los Angeles, who has
acquired for

W. R.

investment

in

purposes

for

excnange

$20,000

10,000 shares of the filing not accounted for
•

Tri

Metal Works, Inc.
5 (letter of notification)

Oct.

San
/

the

cash

above.

terests) to be offered in units.
Proceeds—For
curities Co.

60,000 shares of 40 cents

preferred stock (par $i).. Price
share. Proceeds—For general corporate pur¬
Office—Bannard & Warrington Aves., East Riverton, N. J.
Underwriter—R. L. Scheinman &
Co., New
York, N. Y.- Offering—Expected this week.

Vance

per

Oct.

2

filed

$5,900,000; of

*

participations

in

Office

Boston, Mass. Underwriter
Curtis, New York.
•

—

.

less than $120 a year for annual premium
no
less than $1,500 for single premium
-Proceeds—For investment, etc. Office—1832
VI Street, N. W.;
Washington, D. C. Underwriter—None.

contracts

:

April, li- tuttu 239.U0UA&nares>ut: caprtai. stock- tpai $1 /»
/★ Victoreen Instrument Co. (12/14-18) \
Price
$10.75 per share.;
Proceeds
For investment
Nov. 13 filed $2,500,000 of 6% convertible debentures,
Ottice—South -Main Street, Greenville.;:S ;C
due Dec. 15/ 1974,/to be offered m
tinder '
coupon form in de¬
writer—To be supplied by amendment. Statement, effec¬
nominations- of- $1,000;1 Price — At 100%" of principal
tive Sept. 23.
~
'
•.
amount plus accrued interest from Dec.
15, 1959 to date
—

■

...

Tungsten Mountain Mining Co.;
*
; ;j:
May 21 (letter of notification) $100,u00 principal amou'ni
of 7% &rst
mortgage convertible bonds, to be offered
in denominations of
$500 and 51,000 each. Price-^100%
of principal amount. Proceeds—For
construction, instal¬
lation of machinery and equipment and
wdrking capital
.

Office—511 Securities Building, Seattle 1, Wash.
writer—H. P. Pratt & Co., Seattle 4. Wash;

.*'•

„

Under¬
'

★ Turner Timber Corp. (12 14-18)
V '
12 fried $2,000,000 of 6:*4 % convertible
debentures,
due 1962,
apd 250,000 shares oi common stock (par one
cent), to be'offered in units consisting cf $1,000 principal
oi

debentures and

125

shares

of

stock.

-

mon

United

of

to

Oct.

23

'

"

'•

>

-

;•

,

,

;

.

became

Curtis,

fiiea

'

incidental thereto.

Office—Millville, N. J. Un-

S. Land

U.

stock, of which

1,170,000 shares

rata

offered

to,be

are

Inc., and 1,080;000 shares
holders

pro

to

★ U. S. Magnet & Alloy Corp.
3 (letter of notification) 150,000 shares of common
-stock (par 10 cents):
Price—$2 per share. Proceeds—
For genera! corporate purposes.
Office—266 Glenwood
Avenue. Bloomfield, N. J.
Underwriter—Robert EdelOct.

Co., 52 Wall Street, New York 5, N. Y.

S. Scnics
(letter of
stock (no par}.
working capital.
5

Corp.
notification) 73.300 shares of common
Price—$2.50 per share.
Proceeds—For

Office—Somerville, Mass. Underwriter

Colony Investment Co., Stoneham, Mass.

United Tourist

Enterprises, Inc.
4,500,000 shares of class A common stock*
(par 50 cents). Price — $2 per share. Proceeds — For
development and construction of a "Western Village"
Jan.

and

28 filed

for construction

of

Grand

Estes

Hotel

and Con¬
vention Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer
County, Colo.

Office

—

330

South

39th

a

Street, Boulder, Colo.

writer—Mid-West Securities

Under¬

Corp., Littleton, Colo. State¬

ment effective Oct. 9.
•

Universal Container Corporation (11/30-12/4)
Sept. 25 filed 167,500 shares of common stock (par 10
cents), cf which 150,000 shares are to be publicly offered.
—

Statement

Minneapolis,

Minn.

Offering

—

Expected

this

ican

Diversified

Mutual

Securities, Inc.
Co., both of Washington, D. C.

N.

"

For general

corporate

including provision of funds for the purchase
similarly engaged enterprise, working
capital, new equipment, and expansion. Office—Louis¬
ville, Ky.
Underwriter—Michael G. Kletz & Co., New

and

Gildar &

Y.

Statement effective Nov. 16.

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬
turers; and for working capital. Office—65 Honeck St.,
Englewood, N. J. Underwriters—Amos Treat & Co., Inc.,
and Truman, Wasserman & Co.,
both of New York.
Statement effective July 8.
Western Wood Fiber Co.

stock

(par

!5

cents).

10,000 shares of




per

share.

common

Proceeds—

common

stock, to be of¬

Co,,

'

and

10c).

Price;—To be supplied by amendment. Proceeds—For acL-

vertising

and

general

to be offered on"

are

funds. Underwriter-^-The shares
an "all or none" basis by Adams &

Peck, of New York, who will advise the issuing company
before the close of business on the third full business day
following the effective date of registration as to whether
they will purchase the shares.
Winkelman Bros.

Apparel, Inc.

(12/1)

,

Oct.

• Wood (Alan) Steel Co.
2 (letter of notification) an undetermined number
shares of common stock (par $10) to be offered to
certain employees under the
(Alan) Wood'Steel Co.

Nov.
of

Stock Purchase Plan for

the

American

change
lowest

or

of

Stock

private
current

1960.

Price—At-the-market

Exchange

sales

at

a

and

price

last quoted

Pacific
not

to

on

Stock

Ex¬

exceed

the

offering price

the
American Stock Exchange. Proceeds—To buy stock for
employees.
Office—Conshohocken, Pa.
Underwriter—
or

on

Worcester County

Oct.

30

Electric Co.

filed

$7,500,000 of first mortgage bonds, due
1989, and 35,000 shares of common stock, the stock to be
sold to its corporate parent, New England Electric Sys¬
tem.. Proceeds—First to the payment of short-term notes
payable, then outstanding, incurred for capitalizable con¬
struction expenditures, including notes payable to NEES,
presently amounting to $6,800,000.
The balance will be
used to pay the cost of or the reimbursement of Worces¬
ter's treasury for, extensions, enlargements, and addi¬
tions to the plant and property of the company. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody
& Co.; Blyth & Co., Inc. and White, Weld & Co. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith Inc. 'r The
First Boston Corp.; Coffin & Burr, Inc.
Bids—Expected
•

be received

on

Dec.

7.

World Publishing;

Co. (11/30)
Oct. 23 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

plant and working capital. Office—2231 W. 110th Street,
Cleveland, Ohio. Underwriter—Joseph, Mellen & Miller,
Inc., Cleveland, Ohio and New York.
Distributing Co.

Oct. 30
stock

(letter of notification) 20,000 shares of common
(par 10 cents) to be offered primarily to distrib¬

utors, certain key men within the distributor organiza¬
and recording artists of the company. Price—$10
share. Proceeds—To retire a debt; purchase inven¬
tory, etc. Office—3407 Franklin Ave., Waco, Tex. Under¬
tions
per

writer—None.

Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
stock. Price—At par

mon

(three^ cents per share). Pro¬

ceeds—For mining expenses.

Office—Noble Hotel Bldg.,
Benson & Co., Inc.,

Lander, Wyo. Underwriter—C. A.

Pittsburgh, Pa.
York County Gas
Oct.

26

stock

Co.

(letter of notification)

5,571 shares of

common

(par $20), to be offered for subscription by

stock¬

holders of record Nov.

March 5 filed 100,000 shares of common stock

(par $10)

17, 1959, on the basis of one new
share for each 15 shares then held; warrants to expire

40,000 shares of preferred stock (par $25). Price —
par.
Proceeds—For construction and equipment of
company's plant and for working capital. Office-—300
Montgomery St., San Francisco, Calif. Underwriter—

Dec. 8,

At

lar employees

1959. Unsubscribed shares go tofull:time, regu¬
(including officers) allowing them to sub¬
scribe for not more than 100 additional shares, subject to

None.

$47

West Florida

Natural Gas Co.

Aug. 31 filed $837,200 of 71/2% 30-year subordinated in¬
come debentures and warrants to purchase
25,116 shares
of class A common stock ($1 par). Price—$100 per unit
consisting" of one $100 debenture and a warrant to pur¬
chase three shares of class A common stock. Proceeds—
To be applied, together with moneys in the sinking fund
the

issuing company, to the redemption of the out¬
standing 6% 20-year debenture bonds at their redemp¬
tion price of 103% of their principal amount. Office—
Maple and 3rd Streets, Panama City, Fla.
Underwriter
—Beil & Hough, Inc., St. Petersburg, Fla.
Western Carolina
Nov.
be

Telephone Co.

filed 71,513 shares of common stock (par $5), to
offered
to stockholders on the basis of one new
4

share for each five shares held.

Price—$6.75 per share.

Proceeds—For general corporate purposes, including the
reduction of indebtedness and the continuation of con¬

Price—$5

of

and

of the assets of a

Universal Finance Corp.
July 13 (letter of notification)

shares

White

Word Record

purposes,

York.

100.000

Shield Corp., New York (11/23-27)
Oct. 20 filed 110,000 shares of common stock (par

to

Washington Mortgage and Development Co., Inc.
Sept 29 filed 100,000 shares of common stock (par 10c)
Price—$5 per share. Proceeds—For investment in mortgage notes secured by real estate. Office—1028 Connecti¬
cut Ave., N. W. Washington, D. C. Underwriters—Amer-

of

Price—$4 per share. Proceeds

Office—Mountain Brook, Ala.
effective on July 20.

Washington Planning Corp.
1 (letter of notification) 24,286 shares of new class
A stock (par 10 cents). Price—$3 per share. Proceeds—
To go to the company,^ Office—52 Broadway, New York
4. N. Y. Underwriter—Heft, Kahn & Infante, Hempstead,

holders

to

derdale, Fla. Underwriter—None.

★ U.

of Sherman Concrete Pipe
assets of

Oct.

Properties,
rata to

be

of the outstanding
Venice
East, Inc., which are to be operated as subsidaries of the
issuing company. Office—1040 Bay view Drive, Fort Lau¬

—Olci

•v

offered pro
common
shares of

are

owner

•

of the outstanding commoil shares of Eastern

Nov.

•-

Development Corp.

Oct. 30 filed 2,250,000 shares of common

steln

-

•

.

Co., Talbott Con¬

week.

Works, Inc., and

denvriter—Boenning & Co., Philadelphia, Pa.

of Ralph E. Mills

★Waco-Porter Corp.'
4 (letter of notification) 46,000 shares of common
slock (par $1.25}. Price—$6.50 per share. Proceeds—For
working capital, Office—3565 Wooddale Ave., St. Louis
Park, Minn. Underwriter — Paine, Webber, Jackson &

.

filed

None.

.'Nov.
-

due Dec.

expenses

•

•

that company.

,

(11/30-12/3)

ardson Boat Co., Inc., and Colonial Boat

the stockholders

porations, and "to the.

-

Sl,zO0,Uo0 -or 6% sinking fund debentures,
1, 1974, with warrants to purchase 100 common
shares for each $1,000 of" debentures, and
125,000 sharps
of common stock (par $1), to be offered in units of 100
common shares and
$1,000 of such debentures/ Price—
$1,125 per unit. Proceeds—For the acquisition of Rich¬

Co.; New York, N. Y.

Co., Chattanooga, Tenn., for the business and

•

V

of national distribution and for working
Office—373 Herzl St., Brooklyn, N. Y. Under¬

program

struction Corp. and Talco Constructors, Inc., in exchange
for all the outstanding capital stock of these three cor¬

operating

Marine, Inc.

Underwriter—

Vulcan Materials Co., Inc.

/•/ United Employees Insurance/'Co/^
v>
v;-.d '
April 16 filed 2,000,000 shares of common stock (par $5
Price — $10 per share,' Proceeds — For
acquisition o*

Unitedt

Street, Richmond, Va.

lune 29 filed 10,000 shares of 61A% cumulative
preferred
stock and 560,000 shares of common
stock, to be offered

.

President.

Main

writer—Glen Arthur &

Corp., Seattle, Wash. (12/2)
principal amount of convertible
subordinated debentures, due Dec. 1, 1974.
Price—To
be supplied by amendment.
Proceeds—For construction
with the balance- (which will be at least
$500,000) to
be used for general corporate purposes.-. Underwriter —
Blyth & Co., Inc., New York.-■ p"
•
10 filed $2,500,000

properties, real and/or personal, includlm
office furniture, fixtures, equipment and office
space, b'
lease or purchase.
Office —- Wilmington, Del.•/ Undei
.writer—None. - Myrl. L. -McKee of Portland, Ore., »«

a

capital.

Control

6

com¬

Office

;
Vita-Plus Beverage Co., Inc.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation

any balance to be added to working capital.
Office—60 E. 42nd Street, New York City. Underwriter
—Frank P. Hunt & Co., Inc., Rochester, N. Y. /
•

East

(no par), purchasable under the Plan.

None.

Price—

erties, with

Nov.

stock

—401

$1,001.25 (plus accrued interest from 12/15/59) per unit.
Proceeds—For the
acquisition of coal and timber prop¬

17%, or 34 cents

22 filed 145,000 shares of class A common'/stock
(par $3), of which 70,000 shares are to be offered for
acquiring the assets of Standard Felt Co., with the bal¬
the account of the company and 75,000 shares, repre¬
ance to be used for general
corporate purposes. Office—-r
senting outstanding stock, are to be offered for the ac¬
5806 Hough Avenue, Cleveland, Ohio. Underwriter—Van
counts of the present holders thereof. Price—To be sup¬
Alstyne, Noel & Co.., New York City.
plied by amendment. Proceeds—For general corporate
★ Virgin;a-Carolina Chemical Corp.
purposes. Office—25 Parsons St., Detroit, Mich. Under-!
Nqv. 13 filed $1,500,000 of participations in its Stock
writer—Watling, Lerchen & Co., Detroit.
•>"
Purchase Plan for Employees, and 100,000 shares

of

Nov.

amount

of deliver jv '
Proceedsr-^S 1,850,,000 is to be use<|f to retire
a/shortrterm>bank Joah undertaken' in connection with

exceed

Ohio. Underwriters—McDonald &
Ball, Burge & Kraus, botli of Cleveland, Ohio.

r

I

to

Cleveland,
„v

and

cts.

not

be paid to sellers of such shares.

Western Reserve Life Assurance Co.
Oct.

Price—No

com.

commission
may

fered for subscription by stockholders at the rate of one
new share for each share held. Price—To be
supplied by *
amendment. Proceeds — For working capital. Office-

Paine, Webber,

Annuity Life Insurance Co. of America
;
filed $4,000,000 of Variable Annuity Policies.

April 2.1

..

share,

per

Statement effective Aug. 11,

Sanders

—-

employed by the company, or by registered broker-

men

dealers.' A

Variable

:■ -" *("V
"

in-

Price—$5,378.39 per unit.

Underwriter—O'Malley Se¬

Jackson &

-

6001-4. Price—$5;00u per unit/ Proceeds—For
acquisition
and development of
undeveloped oil and gas properties.

Trinity Small Business Investment Co.."

investment.

& Co., Inc.
(12/1-4)
400,000 shares of non-voting common stock
cents). Price—To be supplied by amendment.

"(par 50

Programs

Office—Longview, Texas. Underwriter—None.

Office—533 East McDowell Road,
Phoenix, Ariz. Under¬
writer—None. Some of the shares may be sold by sales¬

Nov. 3 filed

'

poses.

-

,

Val Vista Investment Co., Phoenix, Ariz.
29 filed 80 investment contracts
(partnership

-

.

T

(19S0-)- Trice Oil and Gas Co.-

Western Heritage Life Insurance Co.
Aug; 26 filed 500,000 shares of common stock. Price—
$2 per share. Proceeds—For general corporate purposes.

Tex. Underwriter—Texas National Corp.,

Antonio, Tex.

June

cumulative, convertible
—$5

operating funds. Office—1-700 Gibralter Life

Bldg., Dallas,

39

(2131)

struction. Office—15

Underwriter—None.

South

Main

St., Weaverville, N. C.

allotment; these rights also expire Dec. 8, 1959.

Price—

share. Proceeds—To pay off a temporary bank
Office—127 W. Market St., York, Pa. Underwriter

per

loan.

—None.

Prospective Offerings
American Gypsum

Co.

July 15 it was reported that the company will register
debt and equity securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬

New Mexico, and for working capital. Office—Al¬
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.
que,

buquerque, N. M.

•

American

Oct.

28

Hospital Supply Corp.
of this company have authorized an

directors

additional equity financing, number

of shares has not as

yet been determined. Proceeds—For, company's expan¬
sion program, to retire bank loans, and for general cor¬
porate purposes.

Underwriters—Eastman Dillon, Union
Continued

on page

40

40

The Commercial and Financial Chronicle

(2132)

Continued from page
-

York.

.

39

Securities & Co. and

Registration

*1960.
•

-

Sept. 14 it

—

•

American Jet School,

Inc., Lansing:, Mich.
announced that the corporation plans to

was

•

Michigan and Ohio sales force to

stock

new

In

—

courses

Kalamazoo St., Lansing, Mich. Underwriter — In
York, to be named. The company is presently negotiating with two New York underwriters.

New
•

and surplus.

Nov.

Sept. 25 it
sale

of

announced that the company plans the

was

Webber, Jackson & Curtis, and Mitchum, Jones & Templeton (jointly).

Oct.

of debentures dated Dec. 1, 1959.
Proceeds
To replace short - term borrowings used to
finance construction. Underwriter—To be determined by

Public

/

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan Stanley & Co.;

•

-

•

-

conversion

15.

Benson

Manufacturing Co.
'- .'V/
Nov. 18 it was reported that the company contemplates
a proposed
offering ot $2,000,000 of convertible debentures due Nov. 30,^ 1971 and 130,000 shares of common
stock (par $1) to be offered in units.
Proceeds — For
expansion program and working capital. Business—The
company is engaged in the manufacture of aircraft and
missile parts, aluminum curtain wall sections for the
building industry. Underwriter—S. D. Fuller & Co., New

•

it

19

Aug. 3 it

plating
which

some

will

be

decided

preferred stock.

Proceeds

tions.
arcl

Consolidated

Natural

Gas

For

construction

and

Paine, Webber, Jackson & Curtis

Nov.
the

•

convertible

debentures.

—

To

it

Service

reported

$7,500,000

able Securities Corp.
ceived on Jan. 19.

determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co.
(jointly); White, Weld
& Co.; The First Boston Corp. and
Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly).
Offering—Expected later this

National
Oct.

5

it

Mail

Co.

that

Trade
It

.

-

Stockholders
subscribe

of

for

this

to expire on Dec. 3.
.

Bank

31,000

are

additional

Price—$53

being

offered

shares
per

Nov.

company

mortgage

contemplates

of

rights

share.

plating

to

common

rights

stock;

bonds.

Under¬

(jointly). Bids—Expected to be

Order

re¬

oversubscription would
and

Suffice
and

REPORTER'S

plans to register

the

the

corporate

replica
few

of

market

with

a

the

"Magic 5s," of a
ago in the Treasury

weeks

market.
The

current

once

plenty

of

around

if

more

that

investment
the

investors vied

insurance

in

companies,

there

is

expressed

many

quarters

with

the

elicited.

re¬

In

fact

confirmed
a

week

that

the

the

ago

in

seasoned

market was suffering from
petition with the big issue.

buyers
and

from

see

the

before

and

it

with their

the form

of

pension

books

was

apparent

opened




66%

of

the

issue

will

the

market

terms

fixed

to

wait

for

the

5.22%

yield

price fixed for the first five

that

attractions

were

average

making

investor

the

two

for American

billion of
And

the

considered

the

way

those with funds

seeking employment will have
more

attention

to

to

seasoned

contributing

were

the

thinking

same

just

lines

matter

be

an

application with the ICC seeking per¬
57,000 shares of common stock (par

count of the company

and 12,000 shares

for

selling stockholder.

the

of

account

a

of

mere

for

to

twice

market

ceeds—To

a

group's

5%%
per

bond

coupon

Trav-ler

and

in

likely that

more

bid

coupon

$100

better

of
was

$1.70

or

than

that

which named the

little

actual

Slashes

approaching
one

with

real

tentialities

for

the

up

as

Calendar

week

shapes

/holiday

it

as

far

as

issue prospects are concerned

plans

sale

but

and preferred stock. Pro¬
for the financing of
Office—Houston, Texas.

funds

Radio

ones

is

it

than

will

up

an

hardly-

materialize

offerings.

all
hands
preparing to
Thanksgiving Day, one of
nation's major holidays, the
bidding on Tuesday for $16 mil¬

lion of bonds of Gulf States Utili¬

Co.,

down

will

the

pretty

curtain

Stock Offered
An

underwriting

headed
Company, is
offering publicly today (Nov. 19)
133,600 shares of common stock,
$5 par value, of Barber-Greene
Co., at a price of $17 per share.
This is the first offering to the
public of any of the company's
by William

With

for

well
the

ring
week.

The

French

Credit

de

and

France—

the Land Bank of France

—

bond issue.
be

by

the

would

the

shares

are

The

being

sold

by

certain

stockholders. Proceeds to the
pany

by

remaining

com¬

will be used primarily to in¬
working capital.

crease

in

1979

the
and

world's

-

Greene

phalt

leading

Co.

is

mixing

producer

plants

would not be redeemable

prior to

paving machines, and

Dec.

through

manufacturer

15,
1969,
sinking fund.

offered,
sold

the

uncondition¬

Government,
mature

being
being

are

company.

Barber

guaranteed

&

shares

shares

have

registered with the Securities and
Exchange Commission for the pro¬
posed flotation of a $50 million
To

the

125,000

Government

Fcncier

group

Blair

securities.
Of

Big French Loan

except

of

and
a

of

as¬

asphalt

principal

materials

-

dling equipment and ditching

han¬
ma¬

Offering of the big issue, to be
chines.
Its executive offices and
by a nationwide under¬
writing group of firms, is tenta¬ principal plant are located in Au¬
tively set for around Dec. 9.
rora,'"111.
handled

•

'

*

i

'|||
I !i

Barber-Greene Co.

couple of

a

!!i

to

first

of

was

po¬

investment

banking world. Certainly
new

10

the

ally

rate.

the

common

permanent

observe

the

with

1960

Corp.
reported that the company is contem¬
plating the issuance and sale of some additional com¬
mon
stock.
Underwriters—Lee Higginson Corp., New

Sept.

list

bonds

The

raise

in

York; and Straus, Blosser & McDowell, Chicago, 111.

along

reoffering price.

17 cents

$1,000

per

about

Price—To be

Proceeds-—The proceeds in en¬
reduce equipment obligations

its 1960 expansion program.

extensive

ties

ac¬

to be offered

Transcontinental Gas Pipe Line Corp.
it was announced that the company

come

there is little to promise much in
the way of activity.

into

are

Sept. 29

sold

these

! i

■I ?■:

i'i-

issue

obviously

pricewise

winning

101.4799

investment

aggregations

Holiday

is that with the huge
sparkler

competed

these

as

feeling

give

that

of the runnerup

At any rate, the general

the

undoubtedly

fact

same

deal

which

years

which

to

Monday's prospects make

Race

Telephone's quarter
27-year debentures.

new

hanking

waiting for.

of

is

to the rousing success of the deal,
when it was publicly offered was

a

worth

out

calendar

Bidding

syndicates

af¬

really

now

forward

Close

The

the

forded, plus the high redemption

so,

since

Not only the best, but virtually
all of the underwriting brains of
the country were at work in the

the

Obviously

or

issues

com¬

This competition, of course, was
indirect
taking the form
of
a
virtual withdrawal of prospective

offering

funds and trusts, for the American

Telephones

About

huge
were

offering of additional stock to

an

tirety will be used to
owing to the Bank of America National Trust & Savings
Association. Underwriter—Dempsey-Tegeler & Co., St.
Louis, Mo. Offering—Expected in November.

was

bankers

this

money

projected

giant counterparts,

even

it

buy

view

undertaking

term? fit in with the views of such
potential buyers.
Small

to

in

undertaking

Punch

as

rush

that

say

AT&T's.

brought out buyers in droves and
p-oved

to

which

sponse

Telephone
&
Telegraph
Co.'s
huge
debenture
issue
provided

quick

Co.

Lines
an

mortgage bonds, and

light.

involved

million

pleased

offering of American

it

others

$25(L

REPORT

be

substantial.

Trust

supplied by. amendment.

Underwriter—To be named later in New

stock.

|

tin

The offering, to be made at the
share for each eight held of record Nov.

new

filed

9

mission

Underwriter—Van Alstyne, Noel & Co., New York.

OUR

&

$2.50), of which 45,000 shares will be offered for the

Co., Lansipg, Mich.
company

one

Transcon

34% bal¬
selling stockholder.

Proceeds—To

Bank

the way for

pave

Oct.

for the company's account and the
remaining
ance will be sold for the account of a

increase capital and surplus.

This week's

it

i

f J

6, will expire Nov. 30.

Stores, Inc.
reported that the company is contem¬
the placing in registration of 17,000 shares of

12

is planning
stock,

common

announced Nov. 4 that stockholders have approved
increase in the bank's capital stock by 39,340 shares

rate of

Nedick's

• First National Bank of Jersey City, N. J.

'■

that the company

$7,000,000 of additional

was

an

year.
,

been

a rights offering and a negoti¬
underwriting. Last rights offering was underwritten
by Stone & Webster Securities Corp., New York.

York State.

'

cur¬

have

ated

issue of 100,000 shares of common stock
(par 10 cents).
Price—To be supplied by amendment.
Proceeds—For
expansion and working capital. Office—130 Shepard St.,

Lansing, Mich.

issues

probably in the form of

(1/19)

the

first

of

announced

was

Co.

Previous

program.

reported

was

the sale of about

Co.; Merrill Lynch, Pierce, Fenner & Smith Inc., and
Kidder, Peabody & Co. (jointly); Salomon Bros. & Hutz¬
ler, Eastman Dillon, Union Securities & Co., and Equit¬

be

Electric & Gas

holders at $19 a share.

Gas

was

of

corporate purposes.
Clearance of the issue

Tampa Electric Co.

writer—To be determined by
competitive bidding. Prob¬
bidders: Halsey, Stuart & Co. Inc.;
White, Weld &

(jointly).

Underwriter

4

sale

general

Proceeds—To repay bank loans incurred for
construction

Sept. 14 it

deter¬

able

Duquesne Light Co.
Aug. 3 it was reported that the company is contemplat¬
ing the issuance of an undetermined amount of subor¬
dinated

be

to

Louisiana

for

and

Blyth & Co., Inc.

22, S. C. McMeekin, President, announced plans
sell approximately $8,000,000 of bonds in
December,

1959.

Jan. 6.

on

—

for the

(par $2.50).
Proceeds-r-To re¬

expected Nov. 24.

to

Co., Salomon Bros. & Hutzler and Eastman, Dillon, Unior
Securities & Co. (jointly): Lehman Brothers and Bear
Stearns & Co. (jointly). Bids—Expected to be received

James Comerford, President, announced that
plans later in year to issue and sell $20,000,000

■-

placed privately.

Underwriter—To

program.

loans

South Carolina

mined by competitive bidding. Probable bidders:
Halsey
Stuart & Co. Inc.; The First Boston
Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White
Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb &

Co.

(11/24)

June

City Power & Light Co.

sell

Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley
& Co. and The First Boston Corp.
(jointly); White, Weld
Co.

is

was reported that tne
company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—

and

of debenture bonds, if market conditions are favorable.

&

bank

Underwriter

Office—130 ShepUnderwriter—In New York, to

St., Lansing, Mich.

-'

-

Inc.

Price—To be supplied by amendment.

rent

Underwriter—In New York, to be named.

month.

This company has
recently sought ICC approval
issuance of 150.000 shares of common stock

Business—Radio broadcasting.

Kansas

1500 Clifton Ave.,

—

this

★ Ryder System,

placed

were

portion
Offering

a

—

Dec. 29 it

Lansing, Mich.

.

issues

pay-

any unsecured bank loans which

outstanding, and including payment of

—Expected in December. Underwriter—Merrill. Lynch,
Pierce, Fenner & Smith Inc. Registration
Expected

received approval from

Last bond

common

of the cost of its current construction
program.

For construction program.

—

general corporate purposes. Office

19,

may be

be named.

House, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock (par 10 cents). Price
—To be supplied by amendment. Proceeds — To build
chain of coffee houses, establish commissaries and for

company

bonds.

new

Co..

the

including

m^jjjjaefore maturity of

later

company

Gas

&

that

(without nominal or par value). Proceeds—1To be *
added to the general funds of the company and will be
used for its general corporate
purposes,

duce

Coffee

May

about

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock
(par 10 cents). Price
—$3 per share.
Proceeds—For acquisition of radio sta¬

Offering—Expected in the first quarter of 1960.
•

add

Electric

announced

was

proposed issuance and sale of 800.000 shares of

the Territorial Public Utilities Commission to issue about

contem¬
form of
It will probably be

shortly.

on

reported

was

$4,500,000 of
privately.

reported that the company is
additional equity financing, the

was

would

Service

it

company on that
an application with the Board of Public
Utility
Commissioners of the State of New Jersey covering the

Hawaiian Telephone Co.

Brooklyn Union Gas Co.

Aug.

which

21

program.

Corp. and Glore, For¬
• •*.
1

stocK

—

York.

(I

of

Boston

date filed

600,000 shares
to the number of common shares currently
outstanding
Proceeds
For expansion.
Office — Olympia,
Underwriter—Financing in past has been handled by'
Blyth & Co., Inc. Offering—Expected pursuant to a
stockholders meeting to be held on Dec. 4 in Augusta,"
Georgia.

White, Weld & Co. and Eastman Dillon, Union Securi¬
ties & Co. (jointly). Bids—Expected to be received on
Dee.

'

First

& Co., both of New York.

gan

Georgia-Pacific Corp.
Aug. 19 it was reported that the company plans to reg¬
ister about $10,000,000 of convertible
preferred stock,

—

;

Co.

standing bank loans and for 1960 construction
Underwriters—The

$30,000,000

Gas

announced

was

^General Telephone Co. of California (12/1)
company plans to sell approximateyl $10,000,000 of
preferred stock about Dec. 1.
Underwriters
Paine,
The

Telephone Co. of Pennsylvania

it

Illinois

bv Marvin Chandler, Presi¬
dent, that the company expects to. sell $10,000,000 to,;
$15,000,000 of straight preferred, stock early next year,
subject to market conditions. Proceeds—To retire out¬

common

is

—

Bell

18

'

'

ic Northern

Corp.
reported that a public offering of

was

Underwriter—Mortimer B. Burnside- & Co.', Inc.,.

gears.

Un¬

expected later this year. Proceeds — For land
acquisition. Office—30 East 60th Street, New York City.
Underwriter—Midtown Securities Corp., same address.

1609
•

increase capital

Florida West Coast

correspondence school business. Office—

- — ''
contemplate^

New York.

Proceeds—To

Oct. 22 it

national one, and
and resident study schools.

reported thatvthik company

share.

derwriter—None.

a

Corporation, Rochester, Mich.

was

the early registration of
approximately 200,000 shares of
common stock.
Business—Manufacturer of mufflers and

100,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of present

Business

New-Era

Sept. 1 it

proposed offering to stockholders of 150,000 additional
shares of capital stock (par $10) on the basis of one
new
share for each four shares held.
Price—$40 per

issue and sell

'introduction of

Miami, Fla.

announced stockholders have approved

v/as

a

-

Aug. 31 it

First National Bank of

■v

*,

Smith, Barney & Co., both of New
Expected sometime after Jan. 1,

Thursday, November 19,1959

.,.

Volume

Number

190

5900

.

.

The Commercial and Financial Chronicle

.

(2133)

coating fields which show great
promise.
"
/' "
\
c ?"
Along with this program, Reheis
"We view Russia's

Company has a continuing Grantin-Aid, issued four years ago to

entry in the world agricultural

market with wheat, or other farm
commodities, as

challenge. In

a

must
can

response

to

such

determine whether

or

not

We

compete.

possible
cannot

choices.

the Soviets

kets

and

us

out of in¬

commercial
the

store

production

easily
has

luster

various

to

willing,

countries

who

*v:;

*

turn

ment, which would in turn fight
with

war

Russia

the

most

at

are

on

a

*

with the

broadening

pro¬

the

economic system. The

our

the end to unrealistic domestic

means

balance

growth

all

sheet.

of the

seems

company in
assured. Because

dividends

to

up

done about

a

cash

ment

securities

1959)

against

liabilities.

financially
govern¬

of March

$194,091

Below

is

28,

current

record

a

of

the

company's sales and earnings
for the past five years.
Depreciation

^Earnings

Per Share

Per Share

0.26

0.34

0.44

0.45

Sales

1955......

1,196,000
1,517,000
1,733,000
1958...... 1,767,000
1959 (Est.) 2,400,000
-Based

(Class

on

total

A—115,549;

0.49

0.57

0.44

0.33

0.44

0.65

of

244,549 shares of stock:
Class B-129,000).

The earnings record established

since

1955

because

broken

was

of additional

expenses

in

1958

administra¬

improvements

and

plant operations. Until recently,

"Reheis"

had

been

a

one-man

organization; to offset this,

capa¬

management was hired from
leading
companies.
The

other

economies

effected

in

plant op¬
eration will begin to show results
1959.
Now

that

the

has

company

arrived at its present status, it is
ready to blossom forth and reap
all

the

fruit

that

it

took

so

build up. Recently,
the
company
received
outside
financing
from
the
Prudential
Insurance Company of America.
many years to

The funds

were

used to

retire

existing loan, purchase
equipment and acquire
Chemical Corp.
Tec

Chemical

produces

and

what

should

an

liver

chased

setting

locally.
up

used

exclusively in the pharmaceutical
such

as

liver

operating

as

duces

parts division of Echlin
1960.

Echlin

is

leading

a

stock

and

cars

■

.

...

trucks.

'

,v

inde¬

HI

'

1

•

stock.

the sale

are

bank

to

•

are

amount

addition

to

its

25, 1959.

'

of

$6,-

Frantz Mfg. Co.

Secondary Made
A

registered secondary block of
160,000 shares of common stock

was

ing capital. The bank loans were
incurred over the past year and

underwriting

half in connection with the

pany's. $8,750,000

in

payable Dec. 10 to stockhold¬

000,000, and for additions to work¬

a

pro¬

bearings.
declared a 3%

of record Nov.

ers

•

The proceeds from
be used to retire

loans in the

Bar den

ball

recently

dividend

tool and die

a

"

Pitney-Bowes, Inc., of Stamford,
recently sold 200,000 shares of
common

ac¬

quarterly
dividend
of
I23/2C per share. Both dividends

pendent manufacturer of replace¬
ment parts for electrical
systems
in

that the

regular

Jan. 4,

on

and

precision

Barden

brake

a

Lacey is

manufacturer

in¬

com¬

expansion

*

and

modernization;

program ; J at
Stamford plant and offices.

offered

Blair &
&

Co.

Co.

Inc.

Nov.

on

at

17
by
headed

an

by
Allyn
price of $15 per

group
Inc. and
a

A.

C.

share.

its

All

of

sold

fractions,




livers

Reheis

crude

is

liver

patients
of

or

being

violet

to

common

the

for

shares offered, were
accounts of certain

the

overexposed

ucts
in

the

on

There

an

stock

of

Rek-O-Kut

are

ultra¬

important
the

of

other

prod¬

development such

food

additive

and

a

has announced plans for a
200,600 square foot plant on

25-acre site in

The

new

plant,

work

over

now

-I*

will

The

funds

no

company was incorporated
Illinois law Aug. 26,
1909,

under

under the

cialty

The Frantz Spe¬

name

Manufacturing

present

corporate

Co.

The

name

was

adopted Jan. 11, 1911.
The
and

company's executive offices
plant are located at 301 West

St., Sterling, 111., about 120 miles
west of Chicago. It is
engaged in
the design, development,
produc¬
tion

•!»

and

to the company.

accrue

and

Norden

Division

of

United

distribution

of

builders'

as

food

multi-million

a

dollar

re¬

search, engineering and manufac¬
turing plant

80-acre tract it

on an

&
Co. has .been formed
with offices at 430 North Camden
Drive to
engage in a securities

business.
and

Theodore

The

account

of

the

company

and

the remaining 71,334 shares
being sold for the account of

cer¬

are

tain selling stockholders who will
receive all of the proceeds from
the

sale

ceeds

of these shares.

was

This of¬

oversubscribed.

company
from the

will use the pro¬
142,666 shares to

and

Montgomery Mtge. Inv.
SILVER

SPRING, Md. — Mont¬
gomery
Mortgage
Investment
Corp. has been formed with of¬
fices

at

11236 Georgia

Avenue to

engage in a securities business. Of¬

ficers

are Robert Symonds, Presi¬
dent; Allan MeHenson, Secretary;
and Morton Lifshutz, Treasurer.

Vice-

Assistant

Secretary.
formerly with

was

&

Co.;

Paine,

Mr.
Hill

Webber,

Curtis and Pacific Coast

s[*

Securities Co.
Directors

of

Plastic

Wire

&

Cable Corporation of Jewett City

Named Director

have proposed

a 10% stock divi¬
dend, subject to stockholders' ap¬

proval, payable in January
date

to

be

on

on

a

later.

board

of

Lines

was

posal at the annual meeting Dec.
18, 1959.
$

The

sH

American

of

pany

chased

New
the

The election of Emery
Flinn, Mi¬
ami
investment banker,
to the

the pro¬

determined

Stockholders will vote

reduce its debt and to finance the

tooling

Ivory,

Jackson &
sf:

Grossman,

Secretary-Treasurer, and William

the

year.

Robert

are

Presidents; Constance Knickmeyer,

Richards

one

Officers

Brandt, President; Joanne Brandt

pected to be completed in about

in danger

future

selling stockholders

Brandt

The

product, needless

would have

under

the

a

#

has acquired in Norwalk. The 350,000 square foot building is ex¬

now

concen¬

to

$

■

Co., Inc. was made on Nov. 17 by
A. Lomasney & Co. as under¬
writer. The stock is priced at $3.50
per share. Of the offering
142,666 shares are being marketed for

fering

infra-red rays. The per¬

or

say,

are

ford,
new

struct

public offering of 214,000 shares

pur¬

supply about 75%

doctors

$

The Fuller Brush Company, Hart¬

Corporation, East Hart¬
ford, has announced plans to con¬

production of new
of the raw materials for the Tec
items
designed especially for
products which, because of the
stereophonic components.
lower cost of raw
livers, should
After completion of the sale of
contribute to profits. This is the
the 71,334 shares for the selling
first step in the
company's plans
stockholders they will continue to
for expansion.
own, as a group, around 66% of
The
company
is planning to the
outstanding common stock.
expand present facilities in order
Prior to this financing most of
to market a new
product some¬ common stock was
closely held,
time in 1960. The
plant is located more
than
45%
having
been
at Berkeley
Heights, New Jersey owned
by
George
Silber, Presi¬
but the expansion
may take place
dent, one of the selling stock¬
elsewhere.
In
addition,
Reheis holders.
Company will continue to look for
Products
which
the
Corona,
companies to fit into their future
Long Island, company designs, en¬
plans.
gineers
and
produces
include
Each
year,
additional appro¬
turntables, tonearms, loudspeakers
priations are put aside for re¬
and speaker systems. It also builds
search
and
development.
The
professional
disc-recording ma¬
company
is constantly working
chines and transcription systems
with leading pharmaceutical firms
for use by the broadcasting in¬
attempting to develop products
dustry, recording studios and edu¬
which make use of the
company's cational institutions.
chemicals.
Presently under de¬
For the year ended June 30,
velopment
is
a
sun-screening
1959 net sales were $1,912,824 and
product. Besides having a poten¬
net income was $106,704 compared
tial as a cosmetic, it would also
with $1,614,540
and $21,009 for
be used as a therapeutic
agent,
the preceding twelve months.
such
as
in
hospitals
where

company.

industry

begin

Rek-O-Kut Co.

of

trate plant in Brazil. These
plants

animal

be

a

fection of such

and

from

will be able to

new

Tec

extracts

bearing

to

will

announced

December.

Co.

transaction

been

quisition will become effective in

volves about $3.3 million in cash
and
stock.
If
approved, United

The

A

be

bile salts, etc. It owns
75% of Quimica Tec del
Uraguay
which is located in Montevideo
and produces
partially-processed

sells chemicals manufactured from

by-products

has

with

merger

Manufacturing
The

Aircraft

extracts,

that

one

and

(as

Manufac¬

Brandt

Security I Like Best...

$636,696

proposed

Parts

Chicago.

Rowland

D.

Reheis is very strong

of

Echlin

sjs

farmer's representative—

farmer

our

but

United

of

Branford, voted Nov.

Products, Inc., of Ken¬ hardware, primarily overhead
Of the 129,000 shares of Class B sington, recently announced a 50% type garage door hardware.
increase
in
its quarterly dividend.
stock, 126,000 is owned by Mr.
Reheis. Class A is presently pay¬ The new quarterly rate of 15c a
Robert Brandt Opens
share represents an increase of 5c
ing at the rate of $.30 a year.
BEVERLY HILLS, Calif.—Robert
over the previous rate.

agriculture!

process,

a

$1.00

Stock All Sold

Out of the mouth of

about

Co.,

on

before Class B stock participates.

American Farm Bureau Federation.

truth

18

With

these

receive

to

confident that outcome will
prove our economic

the

turing

Burlington, Ont.
which will take
performed at a
with a minimum downside risk.
plant in Hamilton, Ont., is ex¬
pected to be completed by midCapitalization:
1960. In Connecticut, Fuller Brush
Notes payable:
$340,000
Common stock:
Class A—115,549 is presently moving from Hartford
Common stock:
Class B—129,000 to its new 360,000 square foot $5.5
mililon plant in East Hartford.
Note:
Class A stock is entitled

challenge of
advantages that

system superior."—Charles B. Shuman, President,

with

in

development
at

factors, it is my
opinion that Reheis Co. can be
bought for capital appreciation

opinion

this

price support programs and

proved satisfactory.

in

of

as
economically as possible. We should meet the
challenge of Soviet Russia with all the force of a
vigorous private, competitive enterprise system. We

slow

ble

meet

our

a return to the
farmer of those opportunities and
incentives which
permit and induce him to produce for the market

are

has

a

strong

rapid

economic

disposal under

must. This

that

the present policy of management,

❖

to

Continued from page 2

tive

and

aimed

very

American farmer is the most efficient
producer in
can become even more
efficient and

farm

small, lack¬

one

towards
making
sound, progressive com¬
pany.
This; has
resulted
in
a
favorable earnings picture and a

the world. We
we

Reheis

contributed

government-to-government

desirable—is

our

said, it is

company's product base have all

all-out-trade

an

possible choice—and in

Soviet Russia

Burling¬

that
a

the

glamour,

the future

third

to

company

at

Connecticut Brevities
Stockholders

-

*

The

in

emerged from

Reheis

basis.

"The

out

been

recognizable

gram

possible choice
f V
c-B-Shum^ :
agriculture - to - •
5
export problems to the U. S. Govern¬

its

over

what has

research

■

•

for

-

carried

related

the hiring of capable, ex¬
perienced management, the ac¬
quiring of a new company, and the

"The second
be

and

years,

.

-

human

and earnings.
The sales increase in the last five

who could be
induced, to accept it.
:

would

is

romance,

or

❖

for

the

the

oxychiorides

^From

or

are

School

University of Vermont,
ton, Vermont.

mar-,

which

tion

19576

of

in

minum

formerly was exported,
attempt to give-.away the
major portion of such produc¬

a

study

mechanism

problems

could let

Medical

perspiration
body.
A second such
program, studying
the
chemical 1 structure
of a;lu-i

S.

we

we

push

ternational

if

Harvard

the

challenge we
agriculture

a

U.

have three

First,

compete

the

41

Manager.

has

pur¬

Padlock

and

Britain

Safe

Com¬

continue

Pennsylvania

as a

to

operate in
separate Amer¬

ican division.
<

The

*

^

.Connecticut

&

20,000 square foot location in

Meriden.
a

of

The

orders

amounting
$1,000,000.

The Barden

bury

has

has
backlog
slightly

now

company

work force of 90 and

under

a

to

Corporation of Dan-

arranged

to

acquire

of
ac-

quisition were not disclosed, but it

I

E.

partner

a

President

and

of

of

the

First

Vice-

as

National

Miami, Chairman of the

of

Carl

President

G.

Fisher

Corp..

of

Spacarb,
(now Automatic Canteen).

Inc.

BROOKLYN, N. Y.—Newburger.
Loeb &

Co., members of the New
Exchange and other
Exchanges,, announce that Mrs,
Sara Middleton, a Registered Rep¬
resentative, has joined their or¬
York

Stock

ganization

in

their

office

at

920

Flatbush Avenue.

Lacey
Manufacturing
Co.,
Bridgeport. The terms of the

'"f.y

Air

C.

Newburger, Loeb Adds

$

Telephone

Electric Corporation, has moved to
a new

Mr. Flinn is

Previously he had served

Board

undisclosed amount of

The 110-year-old Lancaster

will

by

the firm of Oscar E.
Dooly &
Co., investment bankers in Miami.

Pa., for
firm

Delta

in

Hardware

Bank

an

of

announced

Woolman, President and General

Hardware Company of Lancaster,
stock.

directors

J. B.

Whitley

J. B. Whitley, associated with
Halsey, Stuart & Co., Inc., New
York City, passed away Nov. 6th.

-ur

Primary Markets in

CHAS. W. SCRANTON & CO.
Members New York Stock

Exchange

CONNECTICUT
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SECURITIES}

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Teletype NH 194

The Commercial and Financial Chronicle

42

.

.,

(2134)

The following statistical

Indications of Current

latest week

Business Activity

week
Latest

operations (per cent capacity)

Indicated Steel

Equivalent to—
Steel ingots and castings

Year

Ago

Ago

13.1

*45.6

Nov. 21

§2,233,000

6,886,775

6,812,225

7,003,38=

Nov.

7,491.000

7,688,000

7,686,000

Nov.
Nov.
Distillate fuel oil output (bbls.)——
————NovResidual fuel oil output (bbls.)_
——Nov.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at——.———Nov.
Kerosene (bbls.) at
:
—
——Nov:
Distillate fuel oil (bbls.) at
Nov.
Residual fuel oil (bbls.) at
——:
Nov.

27,575,000

27,239,000

27.625,000

Crude

Nov.

to stills—daily

runs

output

output

sales

gas

therms)——

(M

,

Natural gas sales (M thermst——-----Manufact'd & mixed gas sales (M therms)

»

6,898,975

Kerosene

are as

of that date:

Latest

Previous

Year

Month

Month

Ago

5,526,100

5,558,00C

4,959,900

5,439,200

5.461,500

4,718.600

86.900

90.50C

95,500

output—daily average (bbls. 01

gallons each)——

Gasoline

Total

2,000,000

371,000

*1,291,000

H,681,000

42

of quotations,

cases

ASSOCIATION—For month of

AMERICAN GAS

74..1

in

or,

either for the

are

August:

(net tons)——-v

condensate

and

oil

Crude

Month

Week

§78.9

production and other figures for the

cover

Dates shown in first column

that date,

on

INSTITUTE:

PETROLEUM

AMERICAN

Nov. 21

month ended

Previous

Week

INSTITUTE:

STEEL

AND

IRON

AMERICAN

or

tabulations

month available.

or

Thursday, November 19, 1950

(bbls.)

average

(bbls.)
(bbls.)—

1,880,000 ;

2,267,000

——-—-«——

——

of

27,654,000

12,083.000

12,612,000

12,352,000

6,086,000

6,279,000

5,537,000

6,849,000

175,800,000

176,147.000

177,613,000

169,210,000

lons

32,764,000

33,035,000

32,814.000

32,369,000

181,546,000

177,670,000

165,354,000

57,799,000

58,050,000

59,040,000

68,095,000

.

.

.

production (barrels of 42 gal¬

each)

crude oil output (barrels)—.
gasoline output (barrels>__i——_
Benzol output (barrels)—^—-——
Crude oil imports (barrels).——
Li'—,
Refined product imports (ban-els):—_lc—i_
Natural

•

'227,565.000

212,489.000

203,700,000

26,165,000

.25,934,000

consumption

domestic

and

43,000

16,000

36,147,000

16,407,000

20,919,000

"23,008,000

277.808,000

278,192,000

'274,979,000

2,610,000

17,313,000

•

-

.

26,916,000
'

export

___i——

(barrels)

23,822,000

"25,000

27,510.000

--

—_

'. Indicated

238,439,00c

210.311,000

236,501,000

——

Domestic

J

*

181,624,000

INSTITUTE—Month

July:

Total domestic

""2,286,600

worar

11,849,000

PETROLEUM

AMERICAN

"

ASSOCIATION
,

RAILROADS:

AMERICAN

OF

CONSTRUCTION

ENGINEERING

*T

560,658

588,148

558,780

658,442

510,960

524,211

519,257

571,962

Nov. 12

$444,300,000

$251,900,000

Nov. 12
Nov. 12

265,700,000

104,300,000

145,400,000

123,630.000

178,600,000

147,600,000

118,900.000

250,686,000

Nov. 12

148.900,000

120,900,000

110,600,000

197,415,000

Nov. 12

29,700,000

26,700,000

8,300,000

53,271,000

7,535,000

*7,935,000

7,765,000

8,859,000

423,000

369,000

376,000

412,000

————Nov.
(no. of cars)—Nov.

Revenue freight loaded (number of cars)
^Revenue freight received from connections
CIVIL

Increaste all stocks (barrels)—

''

"

ENGINEERING

—

AMERICAN ZINC INSTITUTE,
October:
Slab

NEWS-RECORD:
Total
■'

U.

construction——

—w-

construction————

——-—————-——

8.

Private

Public construction
State

and

—

municipal

—

Federal

$264,300,000 5 $374,316,000

i ;•

OUTPUT

;Stocks

coal

COAL

(tons)
Pennsylvania anthracite (tons)—
Bituminous

and lignite

AVERAGE ==100

SYSTEM—1947-40

Electric output

INDUSTRIAL)

AND

DUN

—

steel

(per lb.)

148

12,378,000

(tons of
63,938

V

62,202

65,723.

65,304

*61,185

93,244

191,251

193,030

210,176

35,060,000

32,530,000

40,205,000

1,709,000

1,726,000

1,966,000

pounds)—
(tons)—_—.—

OF MINES)—Month

(BUREAU

October:
coal

(BUREAU

Production

L

Oven

»-

Beehive

and

lignite

MINES)—Month of Sept.:

OF

(net

coke

tons)

(net

(net. tons)———_

^

1,563,711

1,582,790

4.514,800

—_i„£—-

1,532,010

1,542,545

4,458,100

31,701

40,245

56,700

2,850,429

2,298,911

3,993,444

tons l

(net

...—

—

(per gross ton)-

—

coke

i

tons)

tons)——

(net

lOven coke stock at end of month (net

Nov. 12

285

265

.——Nov. 10
—
Nov. 10
Nov. 10

6.196c

6.196c

$66.41

$46.17

252'

tons)

274

CONSUMER
.OF

—-————

Pig iron (per gross ton)i_
Scrap steel

151

12,861,000

PRICES:

COMPOSITE

AGE

Finished

145

13,019,000

period

Pennsylvania anthracite

&

BRADSTItEET, INC
IRON

155

13,270,000

2,000

'

(in 000 kwh.)

(COMMERCIAL

FAILURES

7

Nov. 14

——Nov.

■_

of

of

end

at

Bituminous

COKE

INSTITUTE:

ELECTRIC

EDISON

7
7

INDEX—FEDERAL RESERVE

STORE SALES

DEPARTMENT

Nov.
—Nov.

—

(tons

OUTPUT

of

OF MINES):

S. BUREAU

(U.

,.

output all grades

poundsL1^-.-—•

Shipments

<

COAL

smelter

zinc

,2,000

^510,000

INC.—Month of

6.196c

6.196c

$66.41

$66.41

$66.41

$46.17

$44.50

$42.33

SERIES—Esti¬

millions

intermediate

and

of

as

RE¬

FEDERAL

THE

OF

SYSTEM—REVISED
short"

mated

in

OUTSTANDING—BOARD

CREDIT

GOVERNORS

SERVE

credit

term

30:

Sept.

'

METAL

(E.

PRICES

&

M.

f;.
——————Nov.
—
Nov.
——
•—-—Nov.
Nov.
—Nov.
rNov.
—
Nov.
Nov.

refinery at
Lead (New York) atExport

Lead

fZlnc

(delivered)

Aluminum

MOODY'S

at

—

—

at—

(primary pig. 99.5% )
(New York) at

tin

at

34.625c

*32.725c

32.375c

28.675c

32.025c

30.875c

28.075c

31.100c

13.000c

13.000c

13.000c

13.000c

11

12.800c

12.800c

12.800c

12.800c

11
11
11
11

—

Average corporate

Group

11.687c

12.500c

12.500c

12.000c

11.187c

•

Group
Industrials Group

;

Utilities

*—

—

—

INDEX

84.17"

83.91

90.20

87.86

87.99

94.71

85.98

85.46

92.93

83.91

84.17».

83.91

Nov. 17

79.01

79.13

78.78

83.91

Nov. 17
Nov. 17
Nov. 17

82.15

82.52

82.65

87.86

84.04

83.79

82.90

90.34

86.11

86.38

86.24

92.50

..

-

'

———

at end of period—

4,57

17

4.70

4.71

4.75

4.21

Nov. 17

4.87

4.85

4,87

4.43

5.27

5.26

5.29

4.87

Nov. 17

5.01

4.98

4.97

4.57

Nov. 17
Nov. 17.

"4.86

4.88

..4.70

,4.68

4.69

4.24

Nov. 17

386.5

385.8

379.0

397.2

7

361,161

328,047

Nov.

7

319,477

332,303

7
7

94

96

523,320

483,208

4.95

ACCOUNT

OF

.

376,005

345,836

331,221

311,196

98

93

570,331

460,078

:

'

Total

sales
sales

Total

111.77

111.09

109.48

Total

—:

purchases

Short

sales

Other

sales

_

P

:

transactions

^

for account

sales

Other

sales

Total

2,419,910

2,684,510

316,670

300,750

387,090

1,834,050

1,527,530

2,241,510

2,194,000

Oct. 23

2,150,720

1,828,280

2,628,600

2,755,150

•'

496,030

506 040

rjnr\ coo

73,820

53,100

56,400

104,700

Oct. 23

458,880

317,o40

577,uuO

Oct. 23

532,700

370,440

633,400

364,030

861,020

Oct. 23

800,540

670,345

769,645

987,739

Oct. 23

111,710

144,583

179,900

181.680

Oct. 23

754,273

629,165

853,743

869,100

Oct. 23

865,983

773,748

1,033,643

1,050,780

w

;

II

sales

DEALERS

EXCHANGE

Odd-lot

sales

Number

Dollar

of

AND

SPECIALISTS

SECURITIES

—

by dealers

ON

N.

EXCHANGE

(customers'

Oct. 23

3,505,860

Oct. 23

;
.

3,695,595

4.442,869

498,433

623,390

3,047,203

2,474,035

3,672,253

847,530
3,819,420

Oct. 23

3,549,403

2,972,468

4,295,643

4,666,950

:

-

Number

sales

i

other sales

!

sales

$111,853,527

$70,838,537

1,333,654

1,382,595

1,672,709

Total
Total

Oct. 23

11,965

13,077

36,759

10,122

Oct. 23

1,283,282

1,320,577

1,345,836

1,662,587

Oct. 23

$63,675,160

$67,224,748

$70,450,752

$76,078,809

329,660

56L270

Oct. 23

606,320

711,220

1,029,770

455,820

dealers— Number

of

shares

•

RAILROAD

Anier.

BANK

—

Oct

23

Oct. 23

661,920

13,772,620
14,434,540

623,450

of

Oct.:

Tel.)

(214)

;

121.6

120.1

118.0

135.0

133.9

135.2

104.0

103.6

103.6

135.2

134.6

132.2

108.0

107.1

,

108.8

'

100.5

.98.8

'

137.9

137.3

108.3
99.6
130.1

92.5 '
:

146.7

92.0
141.3

'

135.3

135.5

130.4

194.9

194.9

189.8

152.2

151.4

.

146.1

132.1

131.7

119.6

119.1

116.6

131,5

131.1

127.1

-144

*143

135

151

*144

141

3.14

3.13

3.45

4.95

4.77

4.01

4.00

4.11

3.70

3.73

4.14

3.36

GREAT

LTD.—Month

128.7

OF

;

2.97

2.75

3.34

3.64

£47,311,000

£24,758,000

..

.

4.80

BRITAIN

of

Oct.—

£34,508,000,

.

MINES)—

:

mills

of

32,590,000

(barrels)

month

(per

Taxes

(barrels)

34,800,000

cent)..^

31,597,000

35,098,000

36,836,000

34,767,000

25,341,000

28,104,000

24,445,000

97

100

98

* §769,210,827

$774,406,342

$374,148,707

615,148,300

629,353,297

674,042,534

81,833,433

78.526.852

91,676,041

AMERICAN

—

!

expenses

;

railway operating income before charges

45.780,612

39,923,383

04,173,722

Net

income

30,000,000

26,000,000

64,000,000

after

(estimated)

charges

MANUFACTURING

INC.-'-Moiith

of

ASSOCIATION

September:

Passengbr Tires (Number of)—
Shipments

7,850,220

1

1,102,400
19 953,420

Production

21,055,820

Inventories

II_—II Nov.
"IIII Nov!
foods"!IIIIIIIII Nov!

119.2

119.2

119.2

10

86.5

*86.4

86.5

91.2

10

105.7

*106.0

106.2

109.7

92.7

*92.7

95.7

101.8

10

128.7

128.7

128.5

126.8

.1

Tires

+D

delivered basis at centers

where
,

freight from East St. Louis exceeds

'

:

(Number

6,761,064

6,658,564

-

Implement Tires

Shipments

Inventory
Passenger
Tubes

(Number

ShipmentsProduction

Inventory

1,196.305

1,253,307

1,299,214

1,225,320

1,143,404

2,905,918

3,053,723

2,880,251

315,745

273,453

273,417

316,131

330,101

280,153

854,017

854,989

675,748

3.692,581

3,583,177

3,498,264

4.064,885

3,715,762

3,390,465

8,334,261

7,847,968

T,656,758

44,055,000

41.206,000

43,083,000

44,929,000

42,354.000

43,726,000

33,502,000

32,978,000

32,613.000

:

.

Truck

and

Bus

Inner

of)—

Shipments

2—
^—
^

Rubber

1,447,954

(Number of)—

Production
Tread

7,133,984

16,044,954

^

—-—

Motorcycle,

8,457,836
18,676,696

^

'
:

8,803,572

19,635,978

of)—

Shipments

891,680

16,507,040

119.2

^

——

Bus

and

Tractor

Nov. 10

on

RRs,)—Month

2

revenues

!

Production

and

CLASS I ROADS 4AS-

Net

.

;

OF

operating
operating

15,615,360

I Includes 967,000 barrels of foreign crude runs. HBased on new annual capacity of 147,633,670 tons
Monfhi^nTn«oCfmonfai5iaga
^an'ni' ?58 ^sis of 140'742-570 tons- ^Number of orders not reported since introduction of
Monthly Investment Plan, fPrime Western Zinc sold




138.2

113.4

.127.9

September:

11,915,580

noil

pound.

&

(BUREAU

EARNINGS

11,292,13'

U. S. DEPT. OF

foods

a

Tel.

IN

(barrels)
end

Production

Oct. 23

„

—

products

cent

139.6

3.03

Inventory

one-half

140.0

115.2

'

"

YIELD

i

Inventory

Commodity Group—

,

•

—.1

ISSUES

SOCIATION

Truck

commodities other than farm

129.3

•

sales—*

_

All

129.7

120.7

;

•

RE-:

:

:

from

at

RUBBER

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

Processed

116.6

567,270

TOTAL ROUND-LOT

Farm

125.6
106.2

116.8

Month of September:

$89,400,397

28(1,080

commodities

AVERAGE

!

CEMENT

Production

1,295,247

288,080

All

114.1

100—
>

(200)

PORTLAND

=

variation

STOCKS—Month

inch

CAPITAL

$79,971,089

Oct. 23

—

Average

(125)

(not

Average

.

adjustment....

(25)

(15)
insurance (10)

NEW

:

SALES—FEDERAL

seasonal

COMMON

;Utilities

Oct. 23

327,980

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 = 100):

STORE

WEIGHTED

•Industrials

Oct. 23

327,980

sales

115.8

.

.

October:

of

Capacity used

329,660

sales

1

for

1,553,096

Oct. 23

Other

c_'

i

care

seasonal

2.124,622

Oct. 23

Short

„

107.6

146.4

;

Without

1,705,039

sales

round-lot

118.7
133.5

t

124.1

92.9-

—*

Adjusted

DM)

'■

^

SYSTEM—J 947-49

Month

1,565,776

sales

Total sales

:

Oct. 23

Other

Total

i20.3

114.1

'

Short

Round-lot purchases by

■•-

-care ,—;

Personal

Stocks

by dealers—

shares—Total

of

109-9

109.2

:

—

—

Medical

of

value

Round-lot

1——

boys'

Reading and recreation
Other goods and services

by dealers (customers' sales)—

of

Customers'

134.C

123.7
:

purchases)—t

orders—Customers' total sales
Customers' short sales

Dollar

134.1

109.0

—

Public

Shipments

STOCK

•

Odd-lot purchases

arid

apparel
Transportation
' Private

*«

.

—

Women's and girls'——

MIDLAND

1,909,215

502,200

Oct. 23

COMMISSION

value

Number

Y.

L-

shares—

and fuel oil

Other

-

L___

■

^.2.——

Railroads

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

-

1953-^=100)

electricity——

Footwear

561,150

Oct. 23

of members—

purchases

Short

and

Men's
i

_

»

—

-

;

(Jan.
1__

Banks

;

4

round-lot

Total

1,874,840

the floor—

;

sales

Total

2,209,290

Oct. 23

Oct. 23
.

on

115.7

115.5

-

home

Apparel

MOODY'S

—

I

sales

118.3

116.2

_

Household operation

.

off the floor—

transactions initiated

Other

Total

.

purchases

Other

118.7

110.4

—

—

SERVE

-Oct. 23

—

sales

Short

—

Housefurnishings

•

111.71

from

away

D!EPARTMENT
Oct. 23

sales

transactions initiated

Other

products

-

Solid fuels

MEM¬

;
.

poultry and fish

Gas

specialists in stocks in which registered——

Meats,

bakery

Rent

4.39

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS

Other

ancl

Housing

.

Total

,

Cereal

Food

.

of

——-

—

products
JL
Fruits and vegetables.—--,—

,

Nov. 13

Total purchases..
Short sales

home

at

•; Dairy

_

L

4.56

Nov.

AVERAGE=l(Ki

Transactions

,

Food

OIL. PAINT AND DRUG REPORTER PRICE INDEX—

FOR

items

89.38

Other food at home

(—-Nov.
Nov.

—

-

;—

INDEX—1947-1949—100—

Month of September:
All

•

(tons)

TRANSACTIONS

—

PRICE

CONSUMER

PAPERBOAttD ASSOCIATION:

ROUND-LOT

credit

'

——

(tons)

3,495

124.8

17

88.48

Aa&——IZ—I—I———————I————I——I Nov!

1949

3,878

125.2

86.11

82.44

4.09

Unfilled orders

3,925

T

2,537

82.69

•

4.57

(tons)

Single payment loans

2,107

4,033

3.57

Production

10,065

2,74C

4.40

Percentage of activity.;

10,861
4,243

4.87

Orders received

8.328

10,899

4,250

4,29

NATIONAL

;—-—

2,724

4.85

Group
Group -

Neniinstalment credit

Service

4.26

COMMODITY

9.33C

Charge accounts ——

4.85

Industrials

9,454

-—'

.—_—

24.700c

4.25

MOODY'S

2,323

99.875c

Nov. 17

Public

8,312

2,363

loans—-L——

24.700c

DAILY AVERAGES:

Group

9,314

102.750c

Nov. 17

Railroad

14,332

9,419

$43,144

•

24.700c

U. S. Government Bonds

!

33,079

16,082

101.375c

Average corporate

A"

37,049

16,259

24.700c

87.99

—

BOND YIELD

S47.91C

37,495

—:

modernization

and

;—____

$48,394

101.750c

84.17

•-

Utilities

MOODY'S

———:

Personal loans

12.500c

Nov. 17

—

Public

Repairs

—

—.—————

Automobile

I

13.000c

82.50

A&— Hill——IIIIIII—IIIIIIIIIIII——————II—I—I Nov.
Railroad

:i—

credit—

credit

Other consumer goods

13.000c

Nov. 17
—

—

Baa

'"<

»

*

U. S. Government Bonds

Instalment

AVERAGES:

DAILY

PRICES

BOND

11
11
11

—

Louis)

Zinc (East St.

Straits

at

Louis)

(St.

.Total consumer

QUOTATIONS):

J.

Electrolytic copper—
Domestic refinery at—:—-—

(Camelback)—

(pounds)
(pounds)
(pounds)

—

'—

.

Volume

Number

IPG

5900

,

.

The Commercial and Financial Chronicle

.

Chicago; The First National Bank

New York State

of

(2135)

Scott & Fetzer Co. "Today's

Oregon; Wood, Struthers & Co.;
Paine, Webber, Jackson & Curtis;
Roosevelt
&
Cross
Inc.; F. S.
Smithers & Co.; Lee Higginson
Corp.; The Boatmen's National A block of
100,000 shares of com¬
An
underwriting
syndicate Bank of St. Louis;
mon
stock
(par $5) of Scott &
formed
by the consolidation of
Dominick
&
Dominick;
Ira Fetzer
Co.
was placed on the mar¬
two groups—the first headed by
Haupt & Co.; Coffin & Burr Inc.;
ket
on Nov.
17 by an underwrit¬
The First National City Bank of Hirsch &
Co.; Dean Witter & Co.;
New
York
and
the
second
by Hayden, Stone & Co.; Shearson, ing group headed by McDonald
& Co. and Kidder, Peabody & Co.
Lehman Brothers—was
the suc¬ Hammili &
Co.; Clark, Dodge &
These shares were offered at a
cessful bidder Nov. 18 for an issue
Co.; Wm. E. Pollock & Co., Inc.;
price of $35.50 each.
of $55,125,000 State of New York Robert
Winthrop & Co.; E. F. Hut50,000 of these shares were sold
Housing Bonds* due Dec. 1, 1961 ton & Co.; Alex. Brown & Sons
to 2009, inclusive.
for the account of George H.
*
"
and J. C. Bradford & Co.
Scott,
The group bid 100.019 for the
Chairman: of the Board of Direc¬
bonds as 4s, 3^4 s. 3.60s, 3;70s and
tors and President of the com¬
-

Stock Marketed

Bonds Marketed .'

2s,

representing

interest

net

a

Coast Exch. Member

pany,-and

the

remaining

50,000

George W. Davis, Davis, Skaggs & shares were sold for the account
On reoffering to the public, the., Co., Chairman of the Board of the •of Carl S.
Fetzer, Vice-President
bonds are scaled to
yield from' Pacific Coast Stock Exchange, has and Director.
2.65% to 3.90%
according to ma¬ announced the election to mem¬
The company, which is the out¬
turity.
;
bership in, tbgY^n Frar^isqo Di¬
growth of a business originally
cost of

3.4810%

the state.

to

Market Review"

43

Phila. Sees, Men to Hear

BUFFALO, N: Y.—"Today's Mar¬ PHILADELPHIA, Pa.—The Philaket Review"
highlights of the delphia Securities Association
New York Stock
Exchange activ¬ and the Financial Analysts of
ities—is the new five-minute pro¬
Philadelphia will be the guests of
gram service feature nightly on Hammond Organ
Company at a
WGR-FM.
meeting to be held Tuesday, Nov.
Dominick and Dominick, lead¬ 24 at the Racquet Club.
Stanley M. Sorenson, President
ing Buffalo investment Securities
firm will sponsor
"Today's Mar¬ of Hammond Organ, will address
—

ket

Review" three evenings each

week.

the group. A question and
period will follow.

New W. E. Hutton Branch
HACKENSACK, N.

J.

—

W.

E.

Hutton & Co. has opened, a branch
office at 337 Main Street under

answer

Walter C. Korn
Walter

C.

Korn, limited

partner

in Newborg & Co., New York

City.,

passed away November 12.

the direction of Edward Ward.

DIVIDEND NOTICES

Named Director

..,

,

vision of

"

Other

members; of the under¬
writing syndicate include:
Trust

Bankers

Co.;

America

of

N.

Morgan
&

T.

S.

land,

&

Co.;

National

Continental

Bank

Street, Port¬
upon which firm he
the privileges of his

convey

Officers,

.

directors

holders of this firm

and
are:

stock¬

Earle

C.

President; Cyril H. May,
Vice-President; Walter H. Dag¬
gett, Assistant Vice-President, and
May,

.

E.

of

Co.

Yamhill

membership.

Illinois

Trust

&

W.

Ore.,

will

Smith, Barney & tCo.; Harriman
Ripley & Co., Inc.;'First National
Bank of Chicago: Halsey, Stuart
& Co., Inc.; Phelps, Fenn & Co.;
Glore, Forgan & Co.; Goldman,
Sachs & Co.;
\
■;
■Eastman Dillon, Union Securi¬
ties

S.

618

A.;

...

Pacific Coast Stock

Exchange of Earle C. May of
May & Co., Inc., with offices,,at

Guaranty Trust Co, of New York;
Bank

the

Pearl

May,

founded

in

1914

George

by

H.

Scott and Carl S,. Fetzer, was in¬
corporated under Ohio law on
Nov. 30, 1917. Its executive of¬
fices

and

West

114th

The

plant

the

leader

a

manufactures

household

Reed, a Partner of
Hammili & Co., has

elected

tronic

Director

a

Research

in

J. I. Case

Directors

of

this

com¬

Cumulative Preferred Stock of the

payable

pany,

January

1,

com¬

1960,

to

stockholders of record at the close
business on December 16, 1959.

Vice

President

of

KENNEDY,
and

Secretary

The Board of Directors of

CONSOLIDATION

International Salt
company

COMPANY

DIVIDEND NO.

at a meeting held today, declared a quar¬
terly dividend of 35 cents per share on

Company

(Incorporated)

able
ers

of

on

December 11,

Company, pay¬
1959, to sharehold¬

of record at the close of business

182

dividend of ONE DOLLAR

A

the Common Stock of the

Wis., November 16, 1959
$1.75 per share on the 1c/c
Preferred stock and 11.375 cents per share on
the 6V2V0 Second Preferred stock of this Com¬
pany has been declared payable January 2, 1960,
to holders of record at the close of business,
December 12,
1959.
L. T. NEWMAN, Secretary.
dividend

of

1959, declared the
regular quarterly dividend of $1,375 per
share on the outstanding 5Vz%
Series

Inc.,

DIVIDEND NOTICES

its'

Racilie,

A

'*•••„

Street, New York 4, N., Y-

Board

sells

and

"Kirby".

name

Broad

pany on November 18.

COAL

DIVIDEND NOTICES

,

25

The

JOHN A.

DIVIDEND NOTICES

•

CITY INVESTING COMPANY

Elec¬

Associates,

Secretary-Treas¬

urer.

t...

of

Cedar Grove, N. J., manufacturei
of
transistorized electronic
de¬
vices.

cleaners under

vacuum

trade

at

W.

Shearson,
been

St., Cleveland, Ohio.

company,

field

located

are

Henry

AND SEVENTY-FIVE CENTS

on

the

John Corcoran,

has

share

a

November27,1959. Checks will be mailed.

been

declared

on

capital stock of this Com¬

payable December 18,
1959, to stockholders of record

pany,

Vice-President & Secretary

November 16,1959.

the close of business

at

on

De¬

cember 4,1959. The stock trans¬
fer books of the

RICHFIELD OIL CORPORATION

not

HERVEY

DREWRYS

dividend notice
The Board of Directors has declared the

regular quarterly

A

quarterly

dividend of seventy-five cents per share for the fourth

cents per

quarter of 1959 and

mon

share

on

a

stock of this

special dividend of fifty cents

per

Corporation, both payable Decem¬

61

com¬

December

payable

stock,

the

on

Manufacturers of

15;. 1959 to stockholders of record November 20,1959.

South Bend, Indiana
T.

A

E. JEANNERET,
Secretary and Treasurer

Norman F. Simmonds

■

• •

•

•

E. 1.0U P0NTDE NEMOURS & COMPANY

• •

•

•

•

•

Common

«

December

dividend of sixty-two and
(62%^) cents per share was
declared, payable December 18, 1959,
An *

by the

Directors

on

stockholders of record at the close

to

of business December 4, 1959.
An additional extra dividend of

15,1959 to

(50$)

December 2, 1959

A.

has declared this

day regular quarterly dividends of $1.12'/2
share

a

Preferred

the

on

Series

and

ferred

Stock

a

able January 25,
record

AMERICA'S FIRST TOBACCO MERCHANTS

•

ESTABLISHED 1768

ary

1960;

for
to

1959,

as

of

payable

on

P

.

du

PAMjfc

fifty
declared,

was

at

the close of business

4, 1959.
JOHN

ptisft,

a

GRKENBURGU,

G.

Treasurer

*

Janu¬

on

share

FLORIDA...

the

on

December
at

14,

NEW

ACCOMMODATIONS

1959,

the close

of

Public Service Electric

NEW

November 23, 1959.

S.

of record

December

PRESIDENT

the year-end dividend

stockholders of record

business

Pre¬
pay¬

business

$2.50

also

Stock

the

both

on

Series,

share

per

1960, to stockholders of

the close

at

8,

Common

DAGGETT

Stock—$4.50

share

$3.50

—

H.

cents

payable January 8, I960, to stockhold¬

'

ers

Bo.ard of Directors

extra

on

stockholders of record
Wilmington, Del., November 16, 1959

the close of business Decem¬

at

one-half

Stock,

declared

Board of

19, 1959

ber 4, 1959.

October 12,1959 payable

The

N. Y.

6,

quarterly dividend of fifty (50^)
per share was declared, payable
stockholders of

record
DIVIDEND

of 50c per share

was

*

New York

cents

REGULAR

on

CALIFORNIA

A

December 18, 1959, to

QUARTERLY

Secretary

LOS ANGELES

complete line

storage batteries.

Drewrys Limited U. S. A. Inc.

ber

a

of automotive and industrial

November 24,1959.

on

Broadway,

November

10,

1959 to stockholders of record at the

close of business

Sec'y.

COPPER COMPANY

MIAMI

(40)

of forty

dividend

J. OSBORN

Exec. Vice Pres. &

share for the fourth quarter

of 1959 has been declared

Company will

be closed.

ATTRACTIONS

PONT, 3rd, Secretary

and Gas Company

FOR THE BIGGEST
SEASON EVER

NEWARK. N.J.

\
e—

CVAJVAM/P

DIVIDEND

AMERICAN
-

Dividend

of

DIVIDEND

$1.75

per

share

on

the

NOTICE
Preferred

P.

Stock of

CYANAMID

Lorillard

cember

18,

December

2,

1959,

way

to

1959.

A

of

record

at

regular quarterly dividend

of $.50

per

have been declared payable December 18,

1959, to stockholders of record at the close of-business

December 2,

1959. Checks will be mailed.

DA VIES, Treasurer

York, November 18, 1959.

PREFERRED

share,

plus an extra dividend of 20c per share, on the outstanding Common
Stock of P. Lorillard Company

New

COMPANY

A

the close of business
The Board of Directors of Amer¬
ican

Company today
quarterly dividend of
eighty-seven and one-half cents
<87
per
share on the out¬
standing shares of the Company's

Regular
Crush-Proof Box
OlD GOLD FILTERS

NEWPORT

at

the

close

of

Regular

King Size
Crush-Proof Box

King Size

King Size

Smoking

Little

Chewing

Turkish

Tobaccos

Cigars

Tobaccos

Cigarettes

BEECH-NUT

MURAD

BAGPIPE

HELMAR

BRIGGS

'

UNION LEADER

FRIENDS

BETWEEN
THE

ACTS

MADISON

INDIA HOUSE




HAVANA
BLOSSOM

on

Cyanamid Company today
declared a quarterly dividend of
the

cents

(40<0

per

share on

outstanding

Common

payable

Stock

snares
of the
of the Company,

December

November 27th, 1959.

'

Robert H. FilePresident

UNEXCELLED

DIVIDEND

ican

forty

pay¬

stockholders

23,

1959,

CLIMATE FOR

A

Dividend

Stock

Per Share

Cumulative Preferred

4.08%
4.18%
4.30%
5.05%

Series

....

Series

....

Series

.

Series
$1.40 Dividend

.

.

or

holders
of
such
stock
of
record at the close of business

1.045

1.075
1.2625

.

.35

.

.45

.......

are

payable

on

before December 22, 1959 to

stockholders of record Novem¬

INDUSTRY, T00I

m®li

ber 27, 1959.
J. Irving Kibbe

Secretary

to

the

$1.02

....

Preference Common

All dividends
,

BUSINESS AND

S

Class of

Common

FLORIDA...

The Board of Directors of Amer¬

EMBASSY

Crush-Proof Box

King SiZf

COMMON

to

per

the Com¬

Company...

business

SPRING

King Size

on

ber 31, 1959:

of record at the close of business

3 V2 '/r Cumulative Preferred Stock,

December 2, 1959.

KENT

Stock of the

able December 18th

a

Series D, payable January 2,1960,
to the holders" of such stock of

record

Cigarettes
OLD GOLD STRAIGHTS

mon

Cyanamid

declared

following dividends

for the quarter ending Decem¬

quarterly dividend of 22c

share has been declared

DIVIDEND

The Board of Directors has de¬
clared the

Miami, Florida

of anticipation has been declared payable De¬

stockholders

DIVIDENDS

QUARTERLY

COMPANY

Company, which otherwise would be payable on the first business day in
January, 1960, by

NOTICE

FLORIDA POWER & LIGHT

Jmw'immmmm

Decembers, 1959.
R. S. KYLE,

PVBLIC SERVICE

Secretary

CROSSROADS

New York. November 17,1959.

P.O. BOX 1-3100, MIAMI,

FLORIDA'

OF

THE

EAST*

The Commercial and Financial Chronicle
44

BEHIND-THE-SCENES INT FEE RETA TIONS

D. C.—On the

WASHINGTON,

old, but refurbished

of the

site

Claypool Hotel in downtown
Indianapolis, Abraham Lincoln
stopped off in 1961 en route to
Washington to take the oath as
16th
President of the United
States.
The other night on the

when he

Governor Handley

of.

D.

and

bons

Constitu¬
prohibits Indiana from

Watts

K.

other students on

Marshall Management

Nation, heard an influential
Hoosier declare flatly that In¬
diana is "a Nixon State."
There is no doubt that out

DePauw

Madison

this

there in a state of
000

nearly 5,000,-

people there is a strong sen¬
for Dick Nixon. At the

timent

the State which
"Cross Roads of

time, in

same

itself the

calls

Democrats are
and more head¬
way.
Evidence of this is the
fact that Indianapolis, one
of
the
largest
cities
in the
United States "not on navigable
water" and having a population
America,"
making

the

more

Democrat Chief
in Mayor Charles H.

of 461,000, has a

Executive
Bos well.

and

a

Vice

the

He

history.

truly

one

said Mr. Nixon is
of America's great

introduction,
appreciation,

to

told

the

ians

in

ternity in the world.

and

in

arrived

Nixon

Hoosier land with his able press

on

Diego edi¬

San

his

from

leave

Klein,

Herbert

Secretary,

only four corre¬
spondents. At the same time, his
chief rival for the Republican
torship,

and

nomination, "Gov¬

Presidential

York,

New

of

A. Rockefeller

Nelson

ernor

California

in

was

a

Then

tribute.

the

he

political trip," but he quickly

audience,

father

his

California

brief pause, the
if

claim any

which

can

won¬

tions.
but

there

he

with dozens of newsmen cover¬

Nearly 85% of the area of the

However, the
main significance of this was the
fact that Governor Rockefeller

state

ing his activities.

transcon¬

making his first

was

political

tinental

trip.

Many Publishers Present
At the

delegation in¬
cluding
Governor
Harold W.
Handley of Indiana, and Eugene
C.
Pulliam, publisher of the
Indianapolis "Star" and the In¬
dianapolis "News." A little while
later Mr. Nixon, obviously tired,
was at the speakers' table at the
James Whitcomb Riley Room in
the
Claypool Hotel
with his
by

"black tie"

a

on.

There the Vice-President and

Only

land.

farm

the

week

before

rains,
came

snows and wintry blasts
the Indiana corn crop had

been

harvested.

The

hogs

fell

that

grain

undergraduates

the

and

to Wisconsin

Alabama

broiled steak and
toe

chapters

a

from

—

ate

a

baked pota-

dinner given by Ber¬
Kilgore, President of the

at

nard

a

Street

"Wall

Journal."

Sitting

with him at the table, decorated

with

a sea

of red and white

nations

were

Scripps

-

Roy

Howard, the

Howard

publisher;

car¬

Laurence

newspaper

P.

Scott,

question that the farm
problem will be an issue in the
1960 Presidential campaig n.

tle

Indiana

tors

and

number

points with pride

to

string of successful edi¬
publishers

and

the

of

natives, like James
Whitcomb Riley, Booth Tarkington, George Ade, George Lew
Wallace and others, who became

which

political pat

will

he

break
while

the

over

Senate.

New York

was

Farm

—Third

national

effect¬

a more

two-fisted

speech-maker

day

a

Mr.

Nixon, while out in In¬
diana, warned against a raging
in

battle

an

Nixon

arrived,

so,

that solution
of the so-called farm problem is

through speakers,
an

of

his

in

a

Per¬

said

He

with

the Grand

Old

Party.

Republicans can't pos¬

Rockefeller
some

of

hold

the

his

slam-

had

is far ahead of Governor Rocke¬

feller

the

for

ination

Republican

nom¬

Great

Mid-

in

out

the

West.

field

next

[This

column

is

intended

to

re¬

flect the "behind the scene" inter¬

the nations Capital
may not coincide ivilh

pretation from
and

may

or

the "Chronicle's"

views.]

oivn

will

and

be

Philip Isles,
Brothers,

a

has

Partner of Lehman
been

elected

rector of the Lehman

it

was

a

Di¬

Corporation,

announced by Robert Leh¬

President

man,

of

the

Corpora¬

Mr. Isles has been
Lehman

at

Look

Year

Fiscal

1960—

of

Manu¬

Association

2

Street,

48th

East

New York, N. Y.

Monetary Policy Under the Inter¬
1914

Arthur

—

Publications

Bloomfield

I.

of

45, N. Y., 50c.
Securities

Over-the-Counter

more

on

than 925 over-the-counter,.,

companies

Over-the-Counter

—

Securities
ment

—

Federal! j
New
York,

Division,

Bank

Reserve

New York

1880-!;

Standard,

Gold

national

Handbook,

a

Di¬

Efficient

Selection:

Investments

of

—j

Markowitz — John
Wiley & Sons, Inc., 440 Fourth
Avenue, New York 16, N. Y.

Profit

M.

Situations in smaller

panies

(sample

from

a

3-month

copy

on

subscription!

request)—Ia-{

Brothers

a

member of

since

1941

and

Associates, P. O. Box
14, Hillsdale, N. J.

State

Tax

director of The One William

Street

Fund,

Inc.;

and

ington

Collections
the

of

25,

D.

1959

in

C.

—

Wash¬

Census,

(paper), 25£.

Callery Prop¬

Underwood

1

Cor¬

.!

Attention Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head

Mills

Official Films

coun¬

Southeastern Pub. Serv.

seemingly made a
good many of the
budding journalists

and

in

audience.

Even

the old "pros" in the
the Vice-President

improve

when

some

Our

1 Carl Marks & Ho. Inc.
FOREIGN

continues to

speaking

20 BROAD

from

and in response to
questions. He told a couple of

literature.

anecdotes that went over well.

But Indiana today has other
things that the people are proud

litical figure where he had gone

SECURITIES
STREET

TEL: HANOVER 2-0050

cuff,

He said

one

hard-hitting

New

York

telephone number is

CAnal 6-3840

of

crowd said

•

SPECIALISTS

HEW YORK 5, N. Y.

TELETYPE NY

LERHER & GO.
1-971
Investment

10 Post Office

po-.

\

TT

!|!l|

com¬

farmers

other

}!

Bi-weekly publication1

—

—$15 for

agriculture

regiment

Jj

Depart-;

G, Jenkintown, Pa.—$7.50.

Nixon

with

the

Mid

Bureau
a

Co.,

vestment

tion.

is

Promotion

&

Division G, Jenkintown. Pa., $5.

not assure
higher net income

young

the

—Research

plans will

imported

hit

(paper).-j

stock market game

new

Harry

Elected Director

tries.
Mr.

C.

25, D.

Invest—A

Portfolio

already suspected when he said:
payment

Inl

Corporation,

Handbook—Containing data

poration.

the

'

re¬

doubt that Vice-President Nixon

will

in

|

f hi

Report—Inter¬

Finance

facturers,

Committeeman

tional

erties, Inc.

out

ton

hi
$

Street, N. W\, Washing¬

tering each other. Only a few
days before the Republican Na¬

bang Democratic politicians who
be

1818 H

National

The results would appear

but the question arises could

own

Farm

members

Hoosier

showed

campaign that he is

effective campaigner in New

Governor

George Doup,
Indiana

fellow

of

lot

a

the

told

Bureau,
what

one.

easy

President

said

He

effective campaigner.

York.

before Mr.
acknowledged

Annual

sibly win unless they stop bat¬

the back for

haps Governor Rockefeller was

so

or

on

Hi

than Richard M. Nixon.

lit¬

a

gave

i

1, N. Y., $5.

International Finance Corporation

there

j

!; i

Publications, 42 West 33rd j

Street, New York

is

that

Bu¬

having its 41st

Pilot
-

hi

Grow—A Guide

Securing

in the Republican party

true

ill!

Help

the

versification

he

Rockefeller.

Governor

the

convention in Indianap¬

annual

olis,

Indiana

the

Even
reau,

famous in the field of American




a

not afford to take the

Governor

will make it an is¬
sue.
Of course the speaker said
there is no easy solution to the
complex farm problem. -

went to New York from Indiana.

its long

that

or

hierarchy who is
ive,

Repre¬

a

Can

Advantages and Ways
Equity
Capital
Through Sales of Stock to the
Public—Maxwell J. Mangold—

cast

to

Vice-President

also

one

as

Senator

as a

a

is

It
no

as

scars,

had

spot again.

Nevertheless,

Both parties

completely/Such ideas must not

Sigma
Delta
Chis.
Kilgore, Mr. Howard

tie

of

Congress

sentative,
a

to

be¬

no

not

has

in

that Governor

no

farmers of

Mr.

in

,

No. 2

votes

in

address

his

not accept the Vice-Presidency.

and publishers and some under¬

Like

Before

conference

news

publisher
of
the
Manchester
"Guardian," and other editors
graduate

Perhaps

He could

not

it

so

Indianapolis he reiterated

The Vice-President said there

Chis—those

professional

the

from

thrived,

on

down.

the

very

Delta

Sigma

the

has

he

cause

has

signed in Indiana, because of
sniping by fellow Republicans.
There
appears
little or no

crises in his political
there will be
others before next July in Chi¬
cago when he will face a show¬

stalks and the shucks.
Farm Problem Aired

was

stories

best

Washington are

Rockefeller

for

Nixon

career.

and

among

"Hand"

seems,

the fields to feed on the residue
of

But

out of

came

Mr.

been turned into

cattle had

the

bureaus.

that

A

heavy

Last

the

the hand outs and

are

"dug up" by probing newsmen.

Iowa

Illinois produce more corn.

and

the

air^er^ Mr- Nixon was

welcomed

is

He told

him.

releases, issued by. the various
departments, agencies and the

dying industry in Indiana.

a

to

young men in the field of
journalism that there are two
types or kinds of reporting in
the Nation's Capital.
He said

the meeting for ques¬
Agriculture is anything

opened

journalists, young and
writing had always

that

difficult

Rockefeller

disclosed

the

additional geography,
be of importance po¬

his formal remarks,

speech

Vice-President

the

come

litically sometimes.
After

presiding

old,

rightfully

could

he

not controversial."

a

that- he should always

The

Then after a

is true

It

year.

to

in

born

was

neighboring Ohio.

make

admonished
take
along his wife, "Pat" Nixon.
Why?
"He told me," said the
Vice-President, "that everyone
liked Pat.
Furthermore, she is

his

Indiana,

in

born

was

dered

that,

particular,

mother

Indian-

and

Financing

Your Company

him

ing the founding a half-century
ago of Sigma Delta Chi, the old¬
est and largest journalistic fra¬

to

up

:

S. Government

U.

(paper), 75c.

Public

How

but

facetiously said he was "not on

I1'
*

Printing Office, Washington 25,
D. C.

ex¬

quet of more than 400 people as
part of a program commemorat¬

Richard

thing that split today!"

question whether he can
win if nominated, in acknowl¬
his

;

Congress

uments,
"His stock wasn't the only

Nixon, whom some Repub¬

the

M i

''til

of
the
United
States—Superintendent of Doc¬
the

licans

pressed

l-ii
•;

—

-

men.

Mr.

1

6,

Employment, Growth, and Price
Levels
Hearings
Before the
Joint Economic Committee of

and

trained,

best

dedicated

Place, Washington
(cloth), $2.95.

C.

D.

the most
President
United States has had in its

the

Policy Maker

and the

Jackson

American"

of

tion

(paper).

—Brookings Lectures 1958-1959
—The Brookings Institution, 722

publisher in his introduc¬
Mr. Nixon said he was

The

Corp., 244
New York,

Avenue,

Economics

2,100 students.
"Truly Great

In¬

Solved—Louis Sachar—

Be

N. Y.

Sigma Delta Chi 50 years ago at
the institution which today has

wondered whether he could live

snowy

Can

Middle

of

Shortage

Apartments—And How It

come

Indianapolis, who founded

from

Wisconsin to fly to
Indianapolis to address a ban¬
and

Critical

It was
handful of

Nixon.

the campus of
University, 40 miles

edging

icy

left

Vice-President

The

a

Pulliam

Mr.

-iil

Con¬

Foundation, Inc., 2 Park Ave¬
nue, New York 16, N. Y. (cloth).

debt.
It was publisher Pulliam, who
paid such a glowing tribute to

piling up

Vice-President

—

I fll
h.

I
f-

Research

Institute

trollers

i

Gib¬

stallations—B. Conway, J.

provision in the State

!

from

Processing In¬

Data

*•'

-HI

Elec¬

Learned

Been

Electronic

population, does not owe a dime
of state debt. Why? There is a
tion that

Has

,

I

A synthesis of

tronic Computers:

What

With

Experience

Business

stepped to the podium told the
journalists and their guests that
Indiana, with nearly 5,000,000

another Republican
stopped off and heard himself
described in a brilliant encomi¬
um as "a man of destiny."
Richard M. Nixon, wno hopes
to become the 35th President of
spot

same

Ti

BOOKSHELF

NATION'S CAPITAL

FROM THE

?

11

j

Businessman's

WASHINGTON AND YOU

„

Thursday, November 19, 1959

...

(2136)

Telephone
HUbbard

Securities

Square, Boston 9, Mass.

2-1990

Teletype
BS

€9

f