Full text of Commercial and Financial Chronicle : November 20, 1958, Vol. 188, No. 5796

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ESTABLISHED 1539

yNlVERSfTv

MICHIGAN
1958

SINEss1®r",'w

Volume 188

New York 7,

Number 5796

Price 50 Cents

N. Y., Thursday, November 20, 1958
*

EDITORIAL

A Program to Strengthen
Private Mortgage Maiket

See It
Nikita Khrushchev

has borrowed

leaf from

Copy

The American Economy—
Problems and Prospodi

By DR. RAYMOND J. SAULNIER*

SUMNER H. SLICHTER

By DR.

the

political notebook of Franklin Roosevelt and
sent the world into a dither with a brightly tinted

Lament

Chairman, Council of Economic Advisers

•-

picture of the Soviet Union's ^future. He has done
more than that.
He has laid out a program in

President Eisenhower's chief economist fayors ending

charts and

datory purchases of government insured mortgages at
par, and revising government's direct lending program

figures which in the form of

FHA-VA

"seven

year plan" sets forth what is to be done to beat
out the rest of the world in economic and social

generation." So "bold"

to veterans in

the
of the Kremlin's boss that they led
Harry Schwarz, the New York "Times" authority
on Russia, to
say in last Sunday's issue of that
newspaper that "if the targets outlined by him
for 1965 and 1970 are actually attained on sched¬
ule, then in the next decade or so the Communist
world will clearly have won the economic com¬
petition with the West and, quite possibly,, the
political and propaganda contest for the alle¬
giance of the uncommitted under-developed na¬
tions of Asia, Africa, and Latin America as well."

progress
forecasts

"in

our

interest rate

are

areas

through private

ceiling, removing Fannie Mae

nothing

trouble

—

Slichter.

The economist envisions

durable

goods beginning in 1959;

into home

financing, and to

cause

I
two

to discuss very briefly what I regard as the
major current problems affecting the housing and
home financing industries, and to
make a few suggestions as to ways

want

To the extent

citizen could fail

of-interest

excitement

prospect?

page

Dr.

Saulnier

corporations find increasing internal
for their funds, the problem of
financing the Federal deficit will

home

become
H. Slichter

Sumaer

the changeableness of conditions in the
mortgage markets and, second, the temptation that

activity

page

THIS

acute.

endeavored

provide

The

forces

making

for

inflation

are

formidable than seems generally to be appreciated.

address

ISSUE:

have

realistic discussion of the problem of

inflation.
on

Continued

>■

Party of the
Restaurant appear in

page

Candid photos taken at the Annual Beefsteak

Traders Association of New York at Antelers
today's Pictorial Section.

Security

and

Continued

uses

problems that I have in
mind are, first, the relative insta¬
bility of the level of home building
two

by Dr. Saulnier before the 45th Annual Convention
of the Mortgage Bankers Association, Chicago, 111., Nov. 3, 1958.

PICTURES

DEALERS

such

Depicts Two Problems
The

♦An

feel

Summary

do so, we will

is the world-

Continued

I—Introduction and

benefit home¬
owners, builders, mortgage investors
and our economy generally. And we
will render a very great service to
our nation's taxpayers.
What publicminded

consumer

groups,

following comments on the business outlook in
the United States have been prepared for publication
in Japanese by the Nihon Keizai
Shimbun of Tokyo. American readers
may find parts of the comments of
interest.
Up to now, the recovery
of business, though considerable, has
not reached important parts of the
economy.
The fdcts seem to justify
a
fairly optimistic view that the
recovery can be financed, at least
through 1958, without an undue ex¬
pansion of bank credit—in spite of
the large government deficit. But as

solutionis to them. And it
enormously important that we
we

names

The

of finding

that

boom in

and
fostering inflation; and explains past and
possible future course of inflation. Terms it paradoxical
that almost nothing is done about inflation despite almost
universal opposition to it.

public funds to be

find solutions to them.

their practices,

substituted for private credit.

the figures cited by the Soviet leader

—

are

building industry and strengthen the private
mortgage market. Stress is placed on eliminating those
provisions that tend to impede the private flow of funds

if there really is any

These recommendations

the home

than figures at the present time,
and Mr. Schwarz takes pains to point out that
they may never be more than a collection of
grandiose dreams—at least within the time peri¬
ods laid down by their author. They offer a very
untrustworthy guide to the future, but even a
fairly near approach to such Herculean achieve¬
ments might well have world-wide repercussions.
Were this nothing more than a really friendly
rivalry in the field of economics, we could and
would wish the people of Russia the best of luck
with their plans—and really rejoice in the good
fortune that would have come to them. The
are

of inflation to attract more opponents to /
contribute less suffering and ;
injustice than would result from forced attempts to force 1
a stable price
level, and to produce important techno- '
logical progress and investment - growth opportunities >
which, in turn, induce price inflation, are discussed by Dr. ;

part of Dr. Saulnier's analysis of policies to help stabilize

Of course,

The perversity

inflation than sufferers,: to

man¬

where mortgages are difficult to get

sources.

University Professor, Harvard University

State, Municipal

and

U. S. Government,
State and

Municipal

STATE

and

MUNICIPAL

Lester, Ryons & Co.
Hope Street, Los

623 So.

Securities
telephone:

BONDS

HA.no ver 2-3700

BROKERS

•

the first national city iank
-

Burnhamand Company

MCMMAS NEW YORK AMD

30 BROAD ST.,

Underwriter

•

Members

N.V/^*'

AMERICAN STOCK

Bond Dept. Teletype: NY 1-708

Net

1832

Banks

(Rights Expiring January

(Rights

placer dev. ltd.

Members

American Stock

25 BROAD

Block

FIRST

STREET

^OilthW€4t COMPANYPALLAS

'.,

Inquiries

BRIDGEPORT

•

PERTH AMBOY

15, 1959)

Expiring November 28,

We offer

CANADIAN

Incited

DEPARTMENT

Teletype NY 1-2270

DIRECT

WIRES TO MONTREAL AND

NEW YORK

market.

wires to Toronto,

Montreal,

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and Halifax
»

•

♦

•

Doximox Securities

Goodbody & Co.
t'fe BROApWAY

Direct private

.1958)

1 NORTH LA SALLE ST
CHICAGO

<ORP0RATIO71
Associate Member ol American Stock Exch.

California-

buy these rights at the

TORONTO

MEMBERS NEW YORK STOCK EXCHANGE

\ '

Exchange

NEW YORK 4, N.

BANK

The Toronto-Dominion Bank

Maintained

and Brokers

current

New York Stock Exchange

Chase Manhattan

Correspondent4—Pershing Sc Co.

Dominion Foundries and Stool Limited

t.l.watson&co.
ESTABLISHED

Markets

Active

Dealers,

New York

THE

EXCHANGES

IROA^T««I^YORK 3,N.X. » PI4-JW
CASLtl COSWHNHAM
,
TMXYVpWV l-S?

Inquiries Invited on Southern
California Securities

of new york

Distributor

Dealer

BOND DEPARTMENT

del Mar,

Hollywood, Long Beach,
Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa Monica
Encino, Glendale,

DEALERS

bank
department

Stock Exchange
Pacific Coast Exchange

Offices in Claremont, Corona

CORN EXCHANGE

bond

York Stock Exchange

Associate Member American

UNDERWRITERS,

chemical

Housing Agency

Bonds and Notes

California
Members New

Public

Angeles 17,

Exchange Place, New York 5, N. Y.

TeL WHitehall 4-8161

;

Tele. NY 1-702-3

Municipals

The Commercial and Financial Chronicle

-(2086)

The

Banks, Brokers, Dealers only

For

Security I Like Best

When it's important to you to
a
broad range of active

participate and give their

reasons

for favoring

they

are

he regarded,

as an

intended to be, nor
offer to tell the securities discussed.) '/

York

nationwide private wire
combined with com¬
plete Over-the-Counter facili¬
ties, enables you to get the
best possible coverage of the

Pur

system,

place
the New York Stock Exchange

A sale of these bonds took
on

markets you want.

indicating
yield to maturity of 5.30%. At
this price, the

Armistice Day at 96,

bonds
sent

New Yorit Hanseatic

repre¬

advan¬

tageous pur¬
Price-

chase.

Corporation

wise, this sale
is 4% points

Established 1920

BOSTON

PHILADELPHIA

sale

SAN FRANCISCO

•

Wires

1941,

CHICAGO

•

had

been

re¬

100.

Naturally,

a
Hubert F. Atwatei

fixed interest

non-callable
issue

will

the

feel

influence

changes in interest rates and it is

Specialists in

RIGHTS

worth

noting that in 1954, these
bonds sold at 127 %, or at a price
to yield 3.45%.
For the protection of his invest¬
ment, the buyer has a closed first
mortgage lien upon 250 miles of
the Erie Railroad main line, plus
the pledge of 20% of the stock of
Chicago & West Indiana Railroad
and 2,400 shares Belt Railroad of
Chicago.
Chicago & Erie Railroad extends
from Marion, Ohio to Hammond,
Ind. and is now an integral part
of the Erie System. These bonds,
assumed
by the Erie Railroad,
came
through the reorganization
without impairment of principal

SCRIP

Since 1917

MbDONNELL&Qa
JVlv

it.l v.-

New York Stock
American

Stock

Exchange
Exchange

BROADWAY, NEW YORK S

120

TEL.

REctor

2-7815

WALL

STREET

NEW YORK 5, N. Y.

the

investor

crushed to earth by

from

realized

Refined

t—

—

who

not

income taxes,

Chicago & Erie, 1st 5's offer a safe
refuge for the investment of gains

SUGAR
Liquid

which

the

sale

stock

have exceeded
servative expectation.

Exports—Imports—Futures

may

con¬

MEYER ZLOTNIK

Spingarn, Heine & Co., N. Y. City
Members of the N. Y. Stock Exchange

DIgby 4-2727

First

Mtge.

Siegler Corp.

expanded from $12 million to $29
million and this progress is still
continuing in the present fiscal
year. During the past fiscal year,
Olympic showed a 17.4% increase
in domestic unit shipments of tele¬
vision sets over the previous fis¬
cal year, despite an industry-wide
slump of 13.3% for the same pe¬
riod.
Export sales surged ahead
28%. To enable it to expand fur¬
ther, Olympic is contemplating the
acquisition of 150,000 additional
square feet of space.
''
In the field of military elec¬
tronics, Olympic's activities have
been primarily in the field of de¬
sign, development and production
of aeronautical navigational aids,
meteorological radar and missile
guidance instruments; but has re¬
cently expanded greatly its efforts
in the design, development and
productions of recorders and re¬
corder subsystems for the various
defense
networks and of major
weapons

systems. Olympic expects

that its next major expansion will
be in defense sales, as a result of
many

team bids with

in the

some

of the

electronics manufacturers

largest

Corporation

Meyer
Zlotn:(k; pf Spingarn, Heine &
Co., New York City. (Page 2) ~
—

country.

the

raising

multipliers
stocks, it is a

relief to find
realistic

pect. 3000

acre

lease.

the

sales
year

Will drill

Exchsntge
Exchanger
If Rector St., New York 8, N. T.

Members American Stock

market

ment

This

division

rently accounts for 25%

cur¬

of total
sales.

ended 6/30/58, Siegler Corp.

■

The present management, which
Started less than four years ago
with

Price: $65,000
fitted

marketable

for

tax

money

securities.

opportunity

for

mergers
or

Excel¬
company

manufacturing

and

annual jssies
through

lias

internal

brought
sales
to
$73
largely in military and
cial

electronics.

The

growth
million

commer¬

breakdown

of the sales for fiscal year

6/30/58

■

Geology On Request

ALVIN WILLARD

& ASSOCIATES
501 FIFTII AYE.
NEW YORK,

company

spa;e$ heeters with
of
$6.5
million,

willing to diversify,

N. Y.

YD 6-1815-6

heating

Sales

Siegler Heating doubled

was:

Electronics

sions.

craft,

(4) Holly-General Co.: Develops
burning wall heat¬
heaters, floor furnaces,
and central heating and/or airconditioning units. Holly-General,

Below

are

described

the

(1) Olympic Radio & Television
Co.:

Makes, distributes and Sells
television, stereophonic and high
fidelity
radio-phonograph,
tape

JAPANESE

and makes gas
ers, water

which

accounts

now

for

25%

STOCKS
For

current

Call

the

industry's wall heater output,
in nine months to Sept. 30, 1958
showed

sales

increase

Bogen-Presto Co.: Is best
for its high quality pro¬
duction
of
high
fidelity • and
stereophonic
sound,
public ad¬
dress, intercommunication, profes¬
sional recording, background
music, disc and tape recorder and
playback equipment and systems.

information
write

Yamaichi

35%

period of 1957. Sales
for month of September were at
a record high.
However, October
sales surpassed that record. >■
same

over

Securities Company
of New

York, Inc.

Affiliate of

Yamaichi Securities

Co., Ltd.
Tokyo, Japan

(5)

known

Brokers & Investment Bankers

111

Broadway,N.Y.6COrtlaadt 1-5999

(6) Hufford Corp.: Designs, en¬
gineers and manufactures special
machine tools which incorporate

DETREX

the

equipment:,

air¬

and satellite elec¬
electro-magnetic de¬

missile

tronic

and

aircraft

missiles

and

industries

Hufford machines.

have

even

Mars

Without

Venus.

have

weigh twice
stature

twice
as

as
large and
much. The rising

Hallar^Sre' hSs'caused

INDUSTRIES
BOUGHT

Hufford

has

—

♦

also
operates a custom stretch
forming division for the trade.

invented

and

de¬

Microlock, the Lunar Probe Vehi¬
cles'
launching
rockets
would

CHEMICAL

SOLD

Hufford-

veloped an original machine con¬
cept and design, the Spin-Forge,
which
is
able to handle
parts
heretofore considered .impossible
parts.
/.
-y V;
or
impractical to manufacture -in
Hallamore is probably the larg¬
one piece, resulting
in increased
est supplier of closed-circuit tele¬
part strength and lower weight, of
vision
systems to the military.
especial importance i n the field of
Hallamore
has
very
large and
space
technology to form and
ever expanding stakes in numer¬
shape materials of higher strength
ous ballistic missile arid
satellite
and greater heat resistance than
programs and projects. Hallamore
previously used for aircraft, mis¬
designed,
developed, and
built siles and -satellites.
unique extreme range tracking
Hufford's
growth pattern has
and telemetry
(communications) been
continuously upward, paral¬
systems known as Microlock, in¬
leled by increasing profits.
stalled
at
six
tracking stations
Other divisions design, develop,
around the earth, which provided
and manufacture other items, in¬
the only contact scientists here on
cluding
ground
support
and
earth had with the USAF Lunar
handling equipment for aircraft,
Probe
Vehicle
fired
this
year.
guided
missiles,
materials and
Microlock is a revolutionary ad¬
baggage.
vancement in the field of elec¬
After being charged with sub¬
tronics which permits the receipt
stantial non-recurring
adminisof static-free signals from a tiny
Jratiye expenses incyyred in con¬
radio
transmitter weighing
less nection with the various" mergers
than two pounds* from the moon, fand with the sale of
320,000 shares

M0RELAND & GO.
C
Midwest
Detroit

Members
Stock

Stock

Exchange

1051 Penobscot Building
DETROIT 26, MICH.
WOodward 2-3855
Branch

Office

—

DE 75

Bay City, Mich.

SpV>*'A^

additional

fiscal

year

were

800

stock, earnings for
ending June 30, 1958
share, jn spite of

per

the recession.
s

Siegler's financial/condition, aS
of

June

30,
it to he cfcasefi"by amiifflrercrtlir
worMKjff capital of $17.5 million
largest aircraft and " missile pro¬ and current assets of better than
ducers
on

bid jointly with them,
for ground support

contracts

equipment and telemetry systems
of major new missile programs.

68%,

activities of the main divisions:

branch offlcM

our

risen

Nearly all the companies in the

test

and

Sales

Siegler's
activities
are
con¬
ducted through 11 separate divi¬

Mobile, Ale.
Direct wires-to

past five years and profits
much faster.
In fact,
this division has always been one
of the biggest money makers.
have

control

creased

cooling equipment,
26%, and machinery and miscel¬
laneous
6%; one-third of total
sales were for the' military.

NY 1-1557

La.-BirminglMiiifAlib

in the

(2) HalMynore Electronics Co.:
Mainly invents, designs, develops,
produces and installs electronics

ending

and

HO—wr 2-0700

New Orleans,

domestic verited space heater

principle
of
stretch-wrap
forming of metals. Hufford is the
world's largest manufacturer of
stretch-wrap f o r m i n g presses.

sissippi.

with 68% of its
electronics in the fiscal

evaluated primarily
electronics company.

mation in Monroe County, Mis¬

lent

ma¬

fields,

should be

well to test. Mississippian for¬

Deal

but

heating" and "special

chinery

FOR SALE: One-half working
interest in excellent gas pros¬

elec¬

actually conserva¬
While the company is also

tive.
in

welcome
electronics com¬

whose multiplier is not only

pany

BROKERS

constantly

the

tronics

ATTENTION

market

Steiner, Rouse* Co
Membert ifear York stock

With

Bought—Sold—Quoted

City. (Page 2)

Seigler

was

For

Baw

five years,
Olympic has exceeded the previ¬
ous year's sales and profits.
Sales

vices, and guidance systems in
When the Erie Rail¬
very
highly
classified
defense
refunding some of its
fields, commercial and military
debt at a coupon rate of 3*4% or
closed-circuit and remote cbntrol
less, it was unable to call this
television systems,, telephone, and
small issue of $12 million which
other communication systems and
had been outstanding since 1890.

XAMB0RN & CO., Inc.

RR.

the past

eaeh of

interest.

road

9 9

ported below

Principal Cities

time

since Jan. 1,

Teletype NY 1-40

WOrth 4-2300

sale

and at

York 5

120 Broadway, New

Private

Exchange

Stock

American

below the last

Member

Erie

5s of 1982—Hubert F. Atwater,
of Wood, Walker & Co.* New

recorder,
and
radio
products,
of the
Wood, Walker & Co., New York City especially combinations
Members New York Stock Exchange preceding products. In fact, this
division is the largest producer of
Chicago & Erie RR." 1st mtge. 5s 1982
; 3-way combinations in the world.

Associate

are not

ATWATER

HUBERT F.

Louisiana Securities
Chicago

(The articles contained in this forum

hurry, you'll find
our
large and
experienced
trading department can be a
big help.
a

Alabama &

Participants and

Their Selections V

particular security*

reach

markets in

Thursday, November 20, 1958

This Week's
Forum

A coutnious forum in which, each week, a different group of experts
fa the URTestmeat and advisory held from all sections of the country

Try "HANSEATIC"

...

Hallamore

about

1000%

have

the

in¬
last

four years.
I understand Hallamore has

re¬

patented an item, which,
production and operational
bugs are ironed out, could by it¬
cently

twice current liabilities. An addi¬

tional increase in working capital
in

the

$2.5
a

near

million

future

may

over

judgment
against
the Coleman Co., Inc., which sum
is now accumulating interest at
infringement

7% per annum until paid.

when

self almost double sales of the

en¬

tire Siegler Corp.

According

Mr.

John

Brooks, President, Siegler Corp. is

principally for the replace-

19-Year Performance of
35

industrial

Stocks

adequately financed at present to
do sales volume in excess of $100

(3) Siegler Heating Co.: Invents;4 million annually. ^
r
designs, develops and makes: a
Siegler Corp. has substantial
complete line of vented oil and
real estate holdings-at-book valuesgas burning home space heaters
used

N. Q. B.

awarded Siegler by

U. S. District Court in a patent

Confiniiedr

page

32-

FOLDER

REQUEST

National Quotation Bureau

Number 5796

188

Volume

The Commercial and Financial Chronicle

(2087)

The Economic Outlook

IN D EX

By RAYMOND RODGERS*

Articles and News

Professor

•-

Banking,

Graduate

However, the economist hastens to add, fear of inflation
cause

unsustainable runaway

other basic weaknesses affecting

y£he reversal in recent months of.

our

Faced with

activity

ican economy has given

Federal

us one

able

j The boom jn

This

Another way
-

record-

Growth
v

transfer

done

was
K.

Koagers

lion

from

record-

breaking expansion in plant and

large scale

on a

September

too,

capital goods
automobile spending.

the

now

that

government tells

modest

improvement
capital goods spending can be
a

pected.

industry,
industry,

finance

1958

the

can

1959 is bound to be

than

in
ex-

And any man in the auto-

mobile

sales-

that

prove

better year

Industry—E. J. Thomas

PERMACHEM CORP.

automobiles!

(Of

Federal
creases of almost $1 billion at an¬
nual rate became effective in July.
In

went

Services
13

RADOROCK
Reform

Fremery

Outlook—William D. Arant_

Financing the Public Debt

♦

Restoring Confidence in U. S. Government Bonds
Gruss

RESOURCES

J.F.Reilly&Co.,Inc.

;

—

Members Salt Lake City Stock Exeh.

Exchange PL, Jersey City
DIgby 4-4970

Teletypes JCY 1160

Salt

Industry—Roger W. Babson—_

Lake

City

Elox

Growth and Attractiveness of Municipal Bonds Cited by
Chester W. Laing_

result

Bank

Direct wires to Denver 4k

a
billion on an
July, after an in¬
nearly $2 billion in June.

crease

STANDARD
12

Coming Developments in Metals and Plastic Chemical

about

WESTWATER CORP.

They Arise Between Canada and
the U. S. A.—Hon. John G. Diefenbaker

addition, Federal employees re-,
a
lump sum retroactive

annual basis

by Marketing

Monetary System and Measures for

Meeting the Problems

ceived

payment of $380 million in July.
And
private
industry
payrolls

Opportunities in Washington, D. C., and Local Securities
—Ralph S. Richard

This,
pay in¬

done.

Economy

—John E. Rovcnsky

—Oscar

and salary increases.
was

Competition

Warner

A Suggested New Way of

■

pansion

either

Food and Agricultural

$27.2

equipment spending. In sharp con¬
trast, the current recovery has, so
far, not had any aid from the ex¬

But

—Robert

V-

billion in September of this year.

wage

Face

pay¬

1957

Must

Our Unsound

trans¬

STRE£T, NEW YORK

WALL

Telephone: WHitehall 4-6351

;

Stocks-for 1959—Arthur J. O'Hara—9

—Bradford

Still another way is to increase
the income of individuals through

URANIUM

Banks

fer payments rose from $21.5 bil¬

1956-57

spending

Expanding World Economy

Price Paid to Avoid Inflation Costs Less Than Inflation
—James F. Oatesi_________-_J___J__

•

for

cash

Obsolete Securities Dept.

.The Business Outlook for 1959—Edmund A. Mennis—L,__

is to increase the

theZ so-called

politics:

—

Industry and an Expanding
—Herbert RSilverman-...___i^

-r

be done in

can

ments, such as social security and
unemployment disbursements. This

of 7.9 million.

Cobleigh

Commercial Finance

income of individuals by increas¬

ing

breaking autoniobile output

basically

Outlobk for the Rubber

Dr.

Credit Companies—Ira U.

stop cheering

never

—David Rockefeller

and 4

individuals

brand

our

Outlook—Raymond Rodgers

American Business in

;

various ways, but by far the best

came

primarily from

And the boom

THE LAST HURRAH

99
!

three

The best choice,

income

AUD OOlOAHY

Constituents

Cover

Dynamic Impact of Communist Trade
Aggression
A. Wilfred May

areas

has

llCHTflMl

Cover

Program to Strengthen the Private Mortgage Market
—Raymond J, Saulnier__

Canadian

last winter, the

was

Economy: Problems and Prospects
Slichter____

obsoletes!

is by tax reduction, either in-,
dividual or corporate — any place
in the long line of production, dis¬
tribution and consumption.
Un-T
happily,
this
method
was
not
1 adopted.

than the J95557 upswing.

came

The Economic

way

distributed

decline in business

"Government

corporations.

19 5 5

Page

/course, is to increase the spend- ;

broadly based
and wiaeiy

in such

basic choices.

record.

has not only
been dramatic,

Sumner

may

He also weighs

recovery

the downward trend in the Amerthe sharpest recoveries
This recovery

downtrend in exports and the labor employment situation, "..j

—

The American

boom and, thus, necessarily...

require active and aggressive credit restraints.

Business

If anticipatory improvement materializes we
should/ Mr.
Rodgers opines, equal previous record GNP-high of 1957.]
next year and may exceed it by $30 billion in 1959 dollars.

„

B. SL

School

—

„

;

Administration, New York University, New York City

Corp.

W. L. Maxson
■

remains to be

course, it

how

seen

these

other

and

U. S. Council of Int'l Chamber of Commerce Favors Steps to

earlier

and automobile
as

Strengthen GATT

private pay increases, per¬
sonal income,
even
without in¬
cluding the retroactive Federal
payment, reached a record level
in

much

4 If

better!)

capital

proves

goods

spending im¬
Washington anticipates,

spending improves
anticipates, we are

everyone

heading

for

records

new

over-all economy in

1959.

the

In fact,

improvement in capital goods and
automobiles added to the increases
in

road-building,

forts

lines

other

would

bring us within the
of a $475. billion
Gross National Output by Christ¬
mas 1959.
In other words, in 1959
we will not only equal the previ¬
ous
record set in mid-1957, but
may go as much as $30 billion (in
1959 dollars) beyond it!

neighborhood

What

has

caused

summer?

in the

this

face

Whether

facilitate

business

annual basis.
third

erv

...

method

re¬

available

Government in

Federal

' * "

can

♦An

the

address

American

cago,

Mr.

Finance

Rodgers before
Conference, Chi¬

L——___

Stocks

Bookshelf

specialized in

Einzig: "European Ups and Downs
Common

effort is the indirect

seen

the

Direct Wires

Mutual

Funds

——

Our Reporter

Our

<
one

——1

—

Governments

Utility

Prospective Security Offerings
—

and You—By

Wallace Streete

•—

Securities Salesman's Corner—_—_—
The Market

FINANCIAL
Reg. U. S.
B.

25 BROAD

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

TELEPHONE HAnover 24300
Albany
Nashville

Boston

Chicago

Schenectady

Glens Falls
Worcester

DANA

Place,

REctor

Company

COMPANY, Publishers

N. Y.

WILLIAM

DANA

Subscriptions in United States,
U.
Territories and Members

S.
of

Possessions,

Publisher'

President

Thursday, November 20,

Rates

Subscription

9576

SEIBERT,

second-class matter Febru¬

25, 1942, at the post office at New
York, N. Y,, under the Act of March 8, 1879.

ary

Pan-American

Union,

Dominion

Canada,

Other

Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue —market quotation
records, corporation news, bank clearings,
state
and
city news, etc.).
.
Other Offices:
*a Sail- ^t.;

Other
Bank

$45.00 per year.
Note—On
the

rate

$68.00

Record

per

year.

exchange,

Monthly,

fluctuations

remittances

111.

(Telephone STate 2-0.613).

foreign

subscriptions

must be made

and

INCORPORATED

39 BROADWAY, NEW YORK 6

Direct

advertisements'

in New York funds.

3-3960

Teletype NY 1-4040 & 4041
Wire

in
for

Chicago

HI" IFRANKEL & CO
WHitehall

—

(Foreign Postage extra.

account of the

year,

per

Publications

Quotation

and

$65.00

$72.00 per year.

Countries,

1958

Every

«»

Reentered

CHRONICLE

HERBERT D. SEIBERT, Editor &

Pacific Uranium

Patent Office

2-9570 to

Specialty

Weekly

New York 7,

Electronic

trade and Industry

Twice

AIsco, Inc.

The Security I Like Best
The State of

Corp;

Altamil Corp.

Securities Now in Registration—

■*

Westwater

—

The COMMERCIAL and

Permachem Corp.

Securities

Railroad Securities

PREFERRED STOCKS

New York Stock Exchange

——

Reporter's Report

Public

25 Park

Members

Dallas

re-

page

Spencer Trask & Co.

Los Angeles

Chicago

News About Banks and Bankers

Philadelphia

37
38

—

NSTA Notes

San Francisco

6
—

CLEVELAND

Indications of Current Business Activity

record-break¬

Continued

Market"

INC.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 14844

Free Trade and

mackie,

HA 2-9000

^From Washington Ahead of the News—Carlisle Bargeron

WILLIAM

■-

Dealer-Broker Investment Recommendations

Published

have

Singer, Bean

Cover

Washington and You^__

For many years we

Copeiand Refrigerator

.Coming Events in the Investment Field-—

ing totals for public construction;

III., Nov. 6, 1958.

(Boxed)

Corp.

(Editorial)

Business Man's

not, we cannot deny the testimony.
enc0Uraging facilitating and even,
of our. own eyes; Government in- e"e "rag
L f CA; 1
g, 71
directly aiding state and local, and
tervention and anticipation of in¬
private spending.
This, too, has
flation, in part caused by that in¬
been done on a large scale.
For'
tervention, reversed the downward
example, a vast public works pro¬
swing.' This is so important that
gram of nearly $2 billion was en-j
it should be spelled out in some
acted
by Congress.
The results
detail.

Permachem

quarter of 1957 to the
quarter of 1958. And, .dur¬

The
the

Bank and Insurance

third

Reviewed

Midwestern Instruments

ing the same period, state and lo¬
cal spending increased $3.9 billion
on

Events

Regular Features

in- its ef¬

direct increase in,
government spending for defense
and other goods and services. This,
too, was done. More specifically,
on
a
seasonally adjusted annual
basis, the rate of Federal Govern¬
ment
spending
for
goods
and.
services increased $2.1 billion-from
covery

third

vigorous
• of
the dis¬
couraging levels of business ac¬
tivity and widespread gloom which
prevailed last spring and early
recovery

the government

Economic

Private Enterprise Is the Salvation!

The second basic method avail¬

the
Basis of the Recovery

Committee

As We See It

able to

most

ABA

another $3.3 billion on an annual
basis to total personal income.
1
1

defense outlays, housing con¬
struction, public works, especially

and

Current International

July, higher than the pre-refession peak of August 1957—and
August and September 1958 added

Pacific Uranium

L 32

PHILADELPHIA

■

(2088)

The Commercial and Financial Chronicle

Canadian Credit
By DK. IRA

Companies

The equity of Imperial Invest¬
ment, following an array of col¬

four

lateral trust notes, four series of
debentures, and four of preferred
stock, consists of 691,070 shares of
non-voting "A" stock (with piiori-

pro¬

credit

consumer

in Canada.

goods (automobiles,
United States is such household appliances, etc.).
Re¬
phenomenon as to oc¬ ceivables are usually purchased
dealers
who
incidentally,
special comment except from
the
paper.
In
gen¬
when, as in guarantee
the past 12 eral,
individual receivables
around
$790
in
1957,
months,
total averaged

purchase of goods on instal¬

consumer

ment in the
a

common

casion

The

months.

consumer

and

loanshave

negative risk element here is well

reduced

been

for

ran

illustrated

by the fact that in re¬

by more than
billion. In

spect to

instalment

Canada, how¬

instal¬

ever,

finance

ment

rather

over

billion

retail

ables

has

receiv¬

wholesale

and

purchased in the ten year
period ended Sept. 30, 1957, credit
losses have been less than l/6th

This is

1%.

remarkable

re¬

sult.

to -the

Investors seem to get a little
baffieu by finance companies since

able- heritage
for thrift and

U.. Cobleigh

Ira

vener¬

the

eschewing
stemming from two main

of debt

residential racial strains, the

Scotch and the French Canadians.

Particularly among these ances¬
tral strains, personal debt has been
rather frowned on, and the un¬
derlying tradition of buying oniy
what you can pay for has no doubt
played a pare in inhibiting the
growth
of
instalment loans
in
the
Dominion.
Since
the
War,
however, in the vast expansion
of Canadian production, and
the rapid
development of nat¬

ural

with

resources,

lays for

new

out¬

large

plant and equipment,

credit in Canada has become

fashionable.

sound

was

and

for the Dominion and its
leading enterprises to borrow for
expansion and business growth,
then personal borrowing for use¬
ful durable goods and appliances
seemed, financially, less repre¬
hensible. Accordingly, finance
companies North of the St. Law¬
rence have been making impres¬
proper

sive

strides.

briefly

We'd

touch

four of them today.

upon

--•'

•

Canadian

nant

total

with

(1957)
ried

finance

company

consolidated

income

of $58,464,390, which
to a net of $3.05

car¬

down

per

the

2,701,257 common
shares
outstanding at Dec. 31,
1957. The principal business is the
on

commercial

financing

of durable

tion.

were

outstanding

the

1957

;»% %-5 V2 %
due
11

1959

$^0

million

1971;

series

debentures

1, 1969

bearing cou¬
pons
of
to 6%; and
5>19,320,000 par amount in three
series of preferred stocks — all
of

anead

also

$54,923,000

variously from April

Feb.

notes

term

secured

different

due

year-end, there

tne

15,

ceptance

with

outstanding to
Industrial Ac¬
sells at 37%

1962.

common

$1.40

warrants

are

stock at $2o up

common

Jan.

There

common.

warrants

some

purchase
to

1978 and
from 4%

dividend,

12%.

and

In view

the

of the

rising trend in earnings, excellent
management, the spread of the
company's activities in
its
103
offices
throughout Canada, and
the leverage afforded by the com¬
stock, Industrial Acceptance

mon

shares have been a popular and
profitable equity (split 2-for-l in
1956).
I AC common is found in
the portfolios of a
vestment trusts.

Montreal

and

number of in¬

It is listed

Toronto

the

Stock

Ex¬

Corp.

Corp. Ltd.

was

incorporated

in 1926 and it, too,
rapidly, increasing its
total assets from $100 million at
Dec. 31, 1950 to $323.6 million at
Dec. 31, 1957. Here again we have
a long
roster of securities on the
has

grown

balance
12

sheet

—

$130.8 million

issues of funded debt

ing

collateral

trust

(includ¬

notes),

$8V2

million in preferred stocks, 1,006,478 shares of
"A" common and

240,000 shares of "B" equal
but with

the

"B"

carry¬

Finance

chase
and

SPECIAL
Talcott.

Talk

porarily
iames

their

with

your

and

working

out a

policy,

you

loyalty.

cooperate

financing

cus¬

tem¬

are

loaning

decision

the

loans, Talcott will
in

loan

Inc. can help

will

good

have

you

requirements

beyond

Talcott,

faced

whose

tomers

FINANCING?

keep

you're
limiting

with

your

if you,

client

as a

requires

program

which you may wish to participate.
member:

you

Re¬

banker, feel that

special

financing

beyond the services of a bank, Talcott
can supply this additional working cap¬
ital
your

until

such

customer

time
are

the

again

needs

in the pur¬

receivables;

subsidiaries

the

personal

(automobile,

en¬

loan,
fire

and
and

casualty) business.

Total consoli¬

dated

risen

income

has

steadily
from $20.3 million in 1952 to
$30.8
million for 1957.

Net has

ad¬

not

vanced

evenly to correspond but
provided, in the past 3%
years, adequate coverage for the
nas

$2.40

dividend

rate.
Price range
"A" stock in the past two
years has been between a low of
81 ¥2

the

and

"A"

high

and

"B"

43 %.

commons

Both
were

split 2 for 1 in 1953.

Considerably smaller than
Imperial

the

Investment

FACTORING

public

panded

finance.

company

became

1954

greatly in 1957
acquisition,
through
a

NEW

YORK

CHICAGO

DETROIT

its

May 31,

share.

economic

Asia

itself

vitally signifi¬

1958

cant.

; The overall
picture shows

individual'

that total Chi¬

sales

manufacturers

ports to the
;six countries?

and

cars

instalment purchases-

only motor

electrical

appliances but trucks,,
trailers, farm, construction and
logging, equipment and small air¬
craft. The acquisition of Lauren-

;

Wilfred

exploitation

and
with

ex¬

its

holding

have been dramatic.
their proportion of the

munity's

This
com¬

total

imports has risen
from
19% to 26% last
vear; in
food from 39 to
49%, and In man¬
ufactured products from 13 to
19%.
In

the

May

But

success.

new,-in

addition

cement,

and
textiles, in which
particularly great increases have

occurred,
has

China's

export

success

already fanned out into

items

iron

and

new

steel

products,
metal processing
machines, sewing
machines, glass, ceramics, and pa¬
products.

per

Southeast:

;

•

Asia, namely
The Growing Inroads 011 Japan
India, Ceylon,
These great sales increases by
Burma, Indo¬ China have
exacted a heavy toll
nesia, Malaya:
against Japan, deliberately—even

(including

to the extent of
tide has given a* real "zing" to
enlisting "boycotts
Singapore),
and
Vietnam,
in¬ in some localities—and
as a matter
Imperial and the long-term pros-, creased
47% from 1953 to 1955,
of course. The competition is
pects for its rising earning power, and another
by
40%
from
1955
no means limited to
cotton goods;
appear quite interesting.
through 1957. This year the total it is now
being extended to raw

Atlantic

Acceptance

Corp.

ized

enterprise is Atlantic Accept¬
Corp. Ltd. With main office

ance

in Hamilton, and branches in St.
Catharine, St. Thomas and Ottawa,
Ontario, this promising company
engages in the consumer financing
of automobiles and

appliances, the

financing of commercial and in¬
dustrial equipment, and personal
loans.

rather

total

small

receivables

around

operation,

common

June

were

Since

million.

100,000

then,

were

sold

shareholders
in

bringing in $550,000
capital and increasing total

new

common

sion
or

160,000 shares. Expan¬
to $5 million
by the end of this year

receivables

1957.

share for the six months ended

1958 (and before new
financing). An expansion

under Mr. C. P. Morgan,
President, is expected to "rev" up
future earning power. The shares
program

have

been

listed

1955 and sold

also

Toronto

high

convertible

half-billion

increase

over

The

key cotton cloth sales
will probably reach 450

yards, against 280

million in 1957.

Substantial
has

been,

sults

areas.

this

composite

particularly telling

have

occurred

re¬

specific

the

l'our-year period a
15-fold increase has been regis¬
tered in Peiping's sales to Burma,
a
14-time
multiplication to In¬
donesia, and to India they have
risen

nine-fold.

With

politicallyvulnerable
Indonesia,
typically,
since 1955 only her imports from
China have tripled in contrast to
a

29%

mere

rise

in her total im¬

since

$9. There's

preferred

with

these

been

finance

sort of

companies
treading water

the incidence of the

recession, and

the decline in sales totals of motor
and appliance. Economic con¬
ditions in Canada now,
however,

cars

have improved sharply, and both
motor and appliance
sales have
turned about. That, together with
the

rising popularity of buying on
credit, should augur well for the
future

the

S.,

new

these

cars

enterprises.
In
two thirds of all the

are

bought "on time";
in Canada, more than half are still
bought for cash.

from

sold

China
in

Malaya and Singapore by
100% from 31,000 tons

rose

1956

while

61,000

million

tons

1957,
of

feet

square

1956.

has

severe

been

on her domestic cot¬
industry that the Malayan
Ministry has now formally imposed
import restrictions through licens¬
ing. Following a previous similar

order

regarding

cotton

textiles

cement, imports
from China are

subject to specific licenses—aimed
at

"dumping and unfair competi¬
(Moscow too is playing for
Malayan market. Within the

tion."
the

past

few

months

the

USSR

has

bought more rubber directly from
Malaya than at any time in his¬
tory—almost four times last year's
volume.
to

be
a

The

Kremlin

exports

largely

due

cotton
to

exports
where

particularly
nesia.

piece
decline

the

China

five

has

done

total

goods is
in their
countries
well-

in Burma and Indo¬

There

doubt

ramics,

and

cement

cotton

aiming at the establishment
trade

mission

volume

munist

China
that

exceeds

certain

Com¬

products sold
of

Japan's

now
some

Industrial

markets.

tool

and

there

—

steel

Indonesia

in volume of sales than
Japanese
counterparts
by
than 100%-. In Malaya and

Singapore more inorganic chemi¬
cals, paper products, and sheet
glass are brought in from Com¬
munist

China than from Japan.

The comparative record in

Hong

striking.
Whereas in
1953 Japan supplied
the Colony with 32% of her im¬
Kong

particularly

ports

grey

goods,

with

prac¬

tically nothing coming from th
mainland; 1957 showed a drasti
reversal with China now supply¬
84%, and Japan only 2%. In
imports of sheet

ing

1953 Hong Kong's

51,% from Japan, wit
In 1957,

glass

were

none

from the mainland.

47%'
16 %

Impact
These

from

came

from

China,

and

New York

Stock Ex¬

Nov. 26 will admit
Stanley N. Brown to limited part¬

First

nership.

months

net

for entire

Domestic

trade

Economies

inroads

have

1957

per

now

$.96

.per

outstanding shares.

Comprehensive Information Upon Request

Forms Bowers Inv. Co.
CHICAGO, 111.—Bowers Invest¬
ment

Company has been formed
with offices at 6031 South Paulina
Street to engage in a securities
business.

cipal,

Paul G.

was

Harrison

blower &

Bowers,

formerly
&

Weeks.

Co.

prin¬

with

Carter

and

Horn-

■>\
,

Blosser

MEMBERS NEW YORK STOCK EXCHANGE
DETROIT STOCK EXCHANGE

111

•

&
•

McDowell

MIDWEST STOCK EXCHANGE

AMERICAN STOCK EXCHANGE

(Associate)

Broadway, New York

Telephone WOrth 4-1155

suited in numerous serious reper

profit $1.89

year

onlj

Japan.

Cooper Tire & Rubber

are

higher
their

to Admit

Alstyne, Noel & Co., 52
Wall Street, New York
City, mem¬
the

the

piece

Van

soy,

validity of Japanese businessmen's
reports that their exports of ce¬

thought

wedge for diplomatic representa-

Alstyne, Noel

from both Japan and India.
The decrease
in Japan's

ton

Van

ma¬

China's

machinery in
India; raw silk, paper products,
goods from Red China than glass, and ceramics in Hong Kong;
Hong Kong. Portland cement and cotton fabrics, caustic soda,

the pressure

All
have

foods.

shipments to Hong Kong, at
164,000 tons in .1957, was up 900%
over the 1955 figure;
causing sub¬
stantial drops in its procurement

The

Malaya, since 1955, Commu¬
nist imports from China have risen
by 55% against a 12%
overall
gain — with Malaya now buying

feet

common.

canned

coal

Import Licensing:
In

vertible into

share of

and

the inroads of Red Chinese
goods into these markets.

$1.10 dividend. It sells around
16V2 yielding 6.6% and is con¬
one

beer,

sheet glass were shipped tnere in
1957 against only 900,000 square

silk, ceramics, paper, sewing
chines, sheet glass, plywood,

goods has been seriously affected

ports.

of Atlantic

Accept¬
has earned well, showing 80c

30,

56%

Penetration in Malaya Elicits

common

full

this year
million square

is expected.

June

estimated

dollars,

A much smaller and more local¬

Acceptance Corp., whose principal H.
business had been in the Province

proportion of
there).
Kong too, China's ad¬

the population
In Hong

case of
products also, as
impact
in well as
areas, has there been con¬
Southeast; centration
of
the
Communists'

mwmwwmmm

...

discounts

with

Chinese

Ltd.

company, of control of Laurentide
r

ended

maneuver¬

the accompanying methods,
the extent of her penetration and
or

agreements and
it finances wholesale purchase
by

1950, it operated for some years
a
private company engaged in

automobile

Talcott: Inc

Corp.

hind Red China's trade

ing,

Imperial handles two main types

Incorporated in British Columbia

FINANCING AND

James

90c

of credit.

bers

first two companies mentioned

COMMERCIAL

new

change,

Imperial Investment Corp.

acceptable

2 for 1

along
60%

vances

Irrespective of the motives be¬

100%

months

were

was

tion
the

year

1957, and the
shares now sell at

the

to you.

engages

instalment

insurance

ACCOUNTS REQUIRING

nine

There

article

through the Far East.
"

were

during the past 15 months due to

through

gages

equally,

"A"

this

capital gain in 2%
Earnings per share for the

years.

ance

Through its 75 branches, Trad¬

12%—a

Trader's Finance

er's

HAVE

resulting

The

Finance

for

gathered on-the-spot by
Mr. May during a recent
trip

December

not

ing the vote.

YOU

include

dividend

April 1956.

the most complicated. In¬
dustrial Acceptance is no excep¬

best
Acceptance

Corp., Ltd., founded in 1925 and
growing both internally, and by a
series of mergers, to be the domi¬

split

from

perhaps

and

Industrial

50,000 shares

pany.

Its

among

sharing

publicly offered at $12.50

retailers

Trader's

largest

and

share, with "B" there¬
and 15,880 shares of "B"
common which controls the com¬

data

were

for

after)

dealers.

Industrial Acceptance Corp.
The

dividend;
share

By A. WILFRED MAY

The

6% cent per share fixed

their capital structures are always

changes.

known

ty as to

conditional

flagged

in
popularity due

$16,495,448 at Dec. 30, 1956
$46,635,216 at Dec. 31, 1957.

gressive companies extending and expanding

The

The Dynamic Impact of
;
Communist Trade Aggression

from

V. COBLEIGFI

(non-interest bearing)

notes

some

This acquisition rock¬

eted consolidated notes receivable

Enterprise Economist

Containing

Quebec.

Thursday, November 20, 1958

...

Teletype NY 1-1385

Number 5796

188

Volume

within

cussions

several

The Commercial and Financial Chronicle

the

American Business in

countries. In Malaya textile dump¬

local

caused

has

ing

curtailment and

production

unemploy¬
ment.
In
Hong
Kong
textile
manufacturers
are
encountering
production cuts,: and some unem¬
ployment. In Japan within the

■1

Expanding World Economy
Vice-Chairman, Board of Directors

have been announced
giant Kanegafuehi Spin¬
ning Company, with wage cuts or
freezes, and plant closures by
other firms expected to follow.

and

programs

our

recent

the

war

effects

are

cru¬

question is concerned with
the future potentialities.
v
of

trend

Effect

policies;

one

of the basic

He foresees such other

tion.

facturers, the production pace was strong and
continue so through November and December.

why. we must contain infla¬

reasons

U.S.

the

that

the China economic offensive? Not
serious,

future.

herself

can.

at least for the foreseeable
China must first supply
with

vast

amount

equipment from abroad.

cloth

not

available

from

David Rockefeller

toward

attainment
In its

technically

the

factories.

goods than with our's.
bulk of

our

pondering
must

the

free

threat
that

nations

seek.

confronting

structure

erect

will

that

the

new

enable

societies to

integration

which

such elements

pires,
tively

the

successful

once

world structure

exports to the South Eastern area
are

the

objectives

prosper and ad¬
The present disorder which
afflicts the world reflects the dis¬

was

based

colonial

em¬

standard,
rela¬
trade and relatively

gold

free

little government participation in
economic and social affairs.
Re¬

mainly composed of foodstuffs

and manufactured goods

financed
directly or indirectly by American

gardless of one's judgment as to
the merits of these
institutions,
aid.
The danger lies rather than as a they did serve in the 19th and
trade threat to us, in China's con¬ early 2Cth Centuries to provide
both political and economic co¬
tinuing and spreading infiltration
hesion among nations. Our probthroughout the region, with its di¬
lem now is to devise a new struc¬
rect impact, economic and politi¬
ture which will provide compara¬
cal, on the countries concerned.
ble cohesion for our time, and
.

With Edward N.

Siegler

(Special to The Financial Chronicle)
_

Edward

now

Four

Underlying

common

Forces

With Brown & Groover
(Special to The Financial Chronicle)

MACON, Ga.—Alfred B. Brum-

surance

than

bil¬

lion

people living in the less de¬
veloped areas, who wish to indus¬
trialize and achieve rising living

standards.

In¬

address

the

Omaha,

Omaha

Mr.

Rockefeller be¬
of Commerce,
1958.

Chamber

Neb., Nov.

17,

have

grievances

remainder

1958

would

substantial if

auto volume

Christmas

assured.

exceed the

season

shopping this year is expected to
from the standpoint of over-all dollar

volume.

Continued work stoppages in the

auto industry held the October
gain in industrial production to one percentage point, the Federal
Reserve Board currently reports.
The Board held out the prospects of a bigger improvement for
November as auto companies slated a doubling of October's low
output.

v;-'
drop of 300,000 unemployed
1,500,000 the total of workers who have re¬
turned to their jobs Since the summer.unemployment peak.
Declines marked the number of workers receiving unemploy¬
ment compensation for the 16th straight week, the Uriited States
With respect to employment,

workers

raised to

economic

panding. program
penetration...

The department

fact,
each
has
been
evolving for the period of roughly
three decades during which the
old structure of the Free World
was
deteriorating.
Moreover, a
series of massive efforts has been

these
At the international

forces.

new

level,

with

deal

have the United Nations,

new

layoffs in the food processing,

New claims, which the agency cusa week ahead of continuing claims, rose by
prior week to 300,400 during the week ended

employment compensation.
'

None of these forces'is entirely

new—in

undertaken

declared

apparel, textile, Construction and lumbering industries — most of
them caused by seasonal factors — increased new claims for un¬

an ex¬

the World Bank, the

International

tomarily

reports

12,200 from the
Nov. 8.

The Federal Reserve
October was

138%

Board's industrial production index for

the

1947-49 average,

Monetary Fund, and a number of

institutions

specialized
fields

health

and

seasonally adjusted,

Continued

page

such

aviation.

II, the United
has
provided the
$67 billion in various

World

Since

compared with 137% for September and 144% for October, 1957.
The October figure represents a recovery of better than half the
drop from the 1957 high of 145% to the recession low of 126%
in April, 1958.
As a result of the curtailment in auto production, and a strike

War

itself

States

vast sum of

including the Marshall

programs

SEE

YOUR

LOCAL STOCKS

Robinson-Humphrey Company,Inc.

RHODES-HAVERTY BLDG.

INVESTMENT DEALER

Each of these efforts has been

generally constructive — indeed,
without them, our situation today
would certainly be very much
it

than

Yet they have

is.

the

created

not

ATLANTA

ABOUT

new

world

eco¬

nomic, poiltical and social struc¬
ture
we
seek.
They have not
done

two

for

main

The

reasons.

One is that until

lacked
of

structure

Such
in

recently we have
clear concept of the sort

the

combined
to

needed

ONE

to erect.

of regional

associa¬
nations

independent
with

I, GEORGIA

LONG DISTANCE 421

ONEW11JL1AM
STREET

WILLIAM

barriers

lowered

within
region and between regions.

trade

each

concept is now emerging
form

and

investment

post¬

world has been that economic

constant
whereas
political bound¬
creation of new
independent states has led to a
shrinkage in their markets.
No
nation,
including
the
United
States, "can build a broad and di¬
versified economy on the basis
of
the„ market within its own
boundaries.
However,
regional
development requires a
broadening of markets,

FUND, inc.

the narrowing of
aries through the

CORPORATE BONDS

the

could

supple¬

been

mented in recent years by

war

STATE AND MUNICIPAL BONDS

WALNUT 0316

for

from

One of the dilemmas of the

Retail trade the past week held close to the level of the
preceding week and like period a year ago. Retail sales estimates

■

tions
♦An

fore

ESTABLISHED 1894E

The

goods look-.for a near
estimates of rubber consumption just

a .generation.:'
Department of Labor currently reports.
Finally, there'is the fact thai we
Workers dtaWittg unemployment insurance declined by 14,400
.confront!»a'i militant -world-wide \'!ft6 1,700,500 ddfirig the Week ended Nov. 1,.the agency noted,
Communist movement centered in
During the like 1957 week,1r irisured unemployment totaled 1,312,Moscow and Peiping, the ruling
400. Workers receiving unemployment compensation for the latest
over
an
empire encompassing a
reporting period accounted for 4% of the nation's labor force,
billion people. Communist efforts
compared with 4.1% a week earlier and 3.3% during the like
to
fan
discontent
and
organize
week of 1957.
*
'

worse

with

Bankers

rubber

One has been termed the "revo¬

in the efforts of

connected

and

completed by Firestone.

Two Reasons for Moving Ahead

— Richard
affiliated with

Groover,
Building.

tires

sistance.

together in their

ATLANTA, Ga.—E. Harris Ken¬ lution of rising expectations" — a
nedy is now with Walls Associ¬ world-wide desire for a better
life.
This has found expression
ates, Inc., Candler Building.

now

'YYY'.

record in 1959 based upon

billion

four

to work

underlie recent trends.

increase
to

better.

Plan, Point Four arid Military As¬

will
now

or even

Manufacturers

interest.

With Walls Associates

back

world

billion

enable associations of free,nations

Siegler & Co., Union
As one views the world situa¬
Commerce Building, members of tion in
perspective, four powerful
the Midwest Stock Exchange.
and
perplexing forces seem to

Brown

units

CLEVELAND, Ohio
Mayer

the

three

vance.

And the

overall

•

most fundamental terms,

World

world

textile business is be¬

remembered

the

challenge

Free

ing done with the Philippines, who
bar all trade with Red China. In
.

other

and

Nearly all the Chinese cotton cloth
is lower price merchandise more
directly competitive with Japanese
t

make.

t rib ution

Even in

local

business
.

uniqueiCion-

textiles, the United States is able
to offer synthetic materials and
blended

convinced

short

maintained, the number of people

given that un¬
derstanding, I

effect

United States trade in Asia of

expected to

was

Detroit is striving to produce 530*000 cars this month and
to 600,000 during December.
Output, however, iqay fajl
of this month's goal, but December may run
^#^5^%

implications of recent trends in

China's

what

Industry

exports
the world economy as buying machines we need from abroad
will in future progress from proc¬
and being alert to expand, our trade and increase our invest¬
essed farm produce to manufac¬
ment He sees governmental foreign economic spending rising
tured items, starting out with
and believes we have economic potential to meet the demand.
"light" manufactures and going on
to heavy and chemical items; and
I have chosen to discuss "U. S.
Another is the force of nation¬
in all these fields her competition
In
the past decade, we
will
become
expansive. In the Business In An Expanding World alism.
textile field, by raising the quality Economy" for two reasons: first, I have seen the virtual end of the
Peiping will no doubt be able to believe there is a need for a colonial systems which dominated
the
broader and
Free World for
three
cen¬
continue, if not increase, its
More than 20 new sov¬
deeper under- turies.
present substantial growth rate.
standing of ereign nations have come into be¬
The future of the Red aggression
it he im p or- ing since World War II.
will depend essentially on whether
A third major force is the ex¬
tance of world¬
even
an
authoritarian state can
wide developplosive rise in population. In the
everlastingly starve its consumers
in
e n t s
to
past 35 years, world population
in the face of a rising GNP; and
American has increased by an amount equal
whether it can perpetually ignore
business; and to the entire population in 1750.
the cost element.
If
recent
rates
of
s e co nd 1 y,
growth are
Meanwhile,

Auto Production

Business Failures

Work stoppages at Chrysler Corp. by white collar workers
and a. strike at The Budd Co. plant, supplier of underbody
corriponents for Rambler, cut- car output the past week by 3.5%
below the preceding week and at the same time adversely af¬
fected steel production. However, among the other car manu¬

change; and

that this is

cial

The

of our foreign
of international

touched upon by Mr. Rockefeller. The banker is not unaware
of our cost structure vis-a-vh the world markets and holds

the

now,

Retail Trade

Commodity Price' Index

success

the irrevocable forces
our foreign economic experiences and
changed objectives for the better, are some of the topics

.economic

and its large stake in the

economy

economic

What's Ahead

Serious

Output
Carloadings

Businessmen's, responsibility in maintaining the dynamism of

'•

Cold trade

•

Electric

Food Price Index

The Chase Manhattan Bank, New York City

by the

State of Trade

By DAVID ROCKEFELLER*

retrenchment

Steel Production

The

some

drastic

weeks

past

(2089)

associations

—

for

instance,

the

European Common Market, or a
Latin American Common Market
—can offer a base broad enough

Continued

page

open-end management investment company

investing in the securities of American business
trial

and indus*)

enterprise with emphasis on long-term capital

possibilities "andcurrent income.

growth^

""4
•

On« William Street, New

York 4,
A

Prospectus on request WILLIAM STREET SALES, INC.

N.Yj

The Commercial and Financial Chronicle

(2090)

111,000,000 units versus 1958's 101,000,000, and a total rubber,; consumption of 1,480,000 tons versus
1958's 1,325,000 tons.
The rubber
industry's 1959 dollar volume could

Outlook lor the Rubber Industry
By E. J. THOMAS*

President, Goodyear Tire and Rubber Co., Akron, Ohio

well
Re

of V;
reasonable optimism for the rubber industry. Mindful of the
diversification strides faking place in the rubber industry, the
industrialist's preview of 1959 offers the belief that the part
of the industry bit the hardest this year will show consider¬
able improvement — deliveries of tires and rubber goods to
auto, truck and tractor manufacttijrers—in line with the upturn
de/eloping in 1958. Opines product diversification and in¬
Thomas lays bare the grounds supporting his view

Mr.

creased

for the
The

"rubber

term

today

than it did in
The rubber in¬

scope

earlier years.

;he

much

something

means

broader

industry"

come

many

of the

industry,

our

factories

addition to

tires and other

rubber

prod¬
now

are

rubber

whole.

in our history.

ever

today/ than

value

>■

plastics. The

Cites

Thomas

Some

con¬
tinues to be noted

for great and
continuous -improvements
in its

In tires alone, we have
seen the
shift to smaller wheel
diameters, larger tire cross-sec¬
tions, tubeless construction, the
use
of synthetic fiber cords and
products.

outlook

ness

have

for tire

With

rubber

looks

that

now

the

113,000,000

10%

carcasses.

the

'•

increased

synthetic

childe"

mark of

look

every

Boston Fund

i '

into

1959

believe

there

that the

parison

was

volume off 7.6%

and

25%

tractors.

ing

oeen

28%,.

that

making

our

This gives

industry has

improvement

•From

talk

All

Thomas

before

Mr.
13,

appointment

tee

w a s

What

Skinner,

;

Vice-Presi¬

since

tire

1946.

production

He for¬

merly

(including
of at least

manager

partment
Life

Ernest

Skinner

served

of the investment de¬
the Boston Mutual

Insurance

Treasurer

Boston and

Company.

The

Bond

Fund

is
of

director of the Texas

Fund.

Other

Fund
,

members

Investment

the

Boston

Committee

get

toying with
dacy.

election.

again the peace secretary. It's not
desperate chance for him to be
taking because if Nixon is elected
he won't be able to get a job as
dog catcher.

candi¬

Rockefeller

Stassen will undoubtedly be

get

his activities.

plenty of

able

money to carry
How he has been

able in the past to get money with
which to seek the Presidency is
of those things that defies un¬
derstanding. He has been amply
supplied with funds in any en¬

one

deavor he has
There
all in
to

ever

should

undertaken.
no

raising enough

head

off

Nixon

trouble at

livelihood

forum.

very

for

can

to try

money

and

nominate

Rockefeller. It will afford

him

make

active role as

•

horrible for

House and catch them

source

and a

Stassen,

expect to see him

shortly appearing before im¬

portant

gatherings

and

Meet

the Press.

in¬

f r
.

Complete Investment. Service
*

BROKERS * DEALERS • DISTRIBUTORS

Two Columbine Branches
DENVER,
Colo. — Columbine
Securities Corporation has opened
branch

office

1334

Pearl

Street, Boulder, Colo., under the
management of J. R. Holt, and at
1346 Connecticut Avenue, N. W.,
Washington, D. C., under the di¬
rection of W. A. Cannedy.

Call.-

Dean Witter
Members

New York Stock Exchange - Pacific Coast Stock Exchange

(Special to The Financial Chronicle)

Merrill Lynch, Pierce, Fenner

Midwest Stock Exchange • American Stock Exchange
Honolulu Stock Exchange • Chicago Board of Trade

PALO

Smith

NEW YORK 5, N. Y.

man

ALTO, Calif.—The PickTrust Deed Exchange is con¬

ducting

securities

business from

offices at 555 Byron Street. Offi¬
cers

are

.'President;
Treasurer.

Joseph
David

Pickering,

Hoffman,

Co.

Pickman Trust Deed Exch.

Marketing Department

man

avail¬

have Nixon take over

the White

government. Presumably we will
still be seeking peace at that time.

and Robert S. Swain.

large

Offices in 112 Cities

them

Mr. Vance, O. Kelley An¬
derson, William F. Shelley, Rob¬
ert L. Osgood, Edward F. Ryan

sell

PINE STREET

professionals

clude:

the

find

Nothing could- be

his

himself

IfNDiRWIITIERS

will

you

effort, whether it succeeds or
not, will give Stassen something to
do. He is pretty well relegated to
the deep background now. If his
plans should turn out, then Rocke¬
feller will be obligated to him and
he Will be back with us in the

than

possibility Of Nix¬

on's accession to the White House,

The endeavor has its prospects.

better

absolute cer¬

that Eisenhower will live

and there is

man.

What

likely to get anywhere

becomes

out his term. Until that time comes,

The

Mr.

pneu¬

done

himself

this

not
it

tainty

Rockefeller

wants to assume, an

Fund

matic

made

com-

Boston

vestment

with

for 1959 is for

and

activity

those who will be

now name

until

the principal man to knock
off between now and the

Presidential

dent, has been
associated

now

agitated

I Can almost

sticking to him.

is,

dent of the in¬

es¬

the
per¬

Stassen's

Such a movement will have hard
going, until about a month before
the convention, among a majority
of the professionals in the party.

see'just
Eisenhower

won

has

Nixon

units.

the .industry's

Stassen

front

1960

able

bound

With

inevitable.

now

in the forefront of it.

held

Henry
T.
Vance, Presi¬

new peak, ris¬
ing another 2,000,000 to 3,000,000

up,

difficult

maneuver

out in

pany.

Summing

Nixon

recent

an¬

nounced

our

industrial pneumatics)

1958.

where

commit¬

Board,

Ernest

Renewal tire sales in 1959

timate

'te National Industrial Conference

tion.

doing.

ten

licked

given

right

mission to second Nixon's nomina¬

that year.

Skinner

going to neeH

areas

was

to not know

was

along with New York friends
the prime movers in

anyway.
it

naive

ment -was

9,000,000 votes.

of Our products

other

for and

back

that

has progressed.

Cleveland, Ohio, Nov.

are

saw

than

the

and

will reach another

the year

replacement

Committee

goods, films, foams, floor¬
shoe products also look

and

ued, with the volume off only 2,2%. better.
profits

now

his

asked

Private leased
'

any stop-Nixon-nominate-Rockefeller movement.
Such a move¬

years ago he said Nikon
hold Eisenhower back and

tive Committee to the Investment

industry's activities, including the
production
of
industrial
goods,
molded

indication

4 Two

tution of the Boston Fund Execu¬

this year with the distinctly better
sales outlook for cars, trucks and

quarter
and

they

to 30%

the profits off 12.2%,.

In the third
the improvement contin¬

and

champion of youth.

ticket. When he

BOSTON, Mass.—The reconsti-

our

We believe

1958 our own com¬
pany's first quarter was our worst
in comparison with 1957, with the
volume - off 13% and the profits
off 37%. The second quarter com¬

that

urged

Appoints

Skinner to New Post

industry which was hit
The renewal tire business actu¬ the hardest this
year
will now
ally improved throughout the year, show considerable improvement—
and our industry will sell more that is, in the deliveries of tires
tires for renewal purposes than and rubber goods to
automobile,
ever
in its history—around 70,- truck and tractor manufacturers.
For the year

said

Improvement

reason

part of

to go

tally, he is called "ye childe" be¬
cause
he is a great youth leader.
We youngsters have got to be-rec¬
ognized, he says. It was in 1948

the

listened

who will be

later, he still thinks he is

-.are

President

along with the play has left Wash-*
ington observers speculating as to
whether he, himself, is not willing

enough, Mr.
Inciden¬

years

the clouds

the

left

The fact that the President went

when

10%>
\'

Considerable

of this

000,000 units.

Rockefeller

pearing; there is more sunshine
and, hence, reasonable optimism.

have been

win.

can

disap¬

In short,

the

what Mr. Stassen

would

1,465,000

1,325,000

products)

year's decrease in
tires and general rubber products
came about
due to the reduced
automobile and truck production.
Most

persons

Strangely

man.

presence.

prattle for an hour is hard
Then, when he
named his four candidates, point¬
edly leaving Nixon out, the wonder
is that the President didn't laugh
right out. The President Could hot

Stassen- left out himself.

industry.

Nelson

his

which

our

four

threw

natural mate¬
rials, increase stature and stability
are

doesn't think he

in.

when

talk

understand.

avail¬
able, who can make the grade,
three
of
whose
names
he just

Tons of rubber used (incl. tires
& all other rubber

Why

that
/ with

knew

his silly

He.names

latter

intended

President's

e n-

■couraging to
the Republi¬

diversifica¬

materials

the

newspapermen

win

Secret

not speaking for the Presr

ident/but

mere

to' help

ing

tary Jim Haggerty said that Stas¬
sen was

e r

Stassen

will

There4 also

uses.

candidates

It is true that Press

k nowl ed g e

new

ventory hazards

Production of

pneumatic tires
(incl. industrial pneumatics) 101,000,000

the

could

four

with.

i 1 d

to do and

the

that he is will¬

tend to minimize the old-time in¬

rubber

A Decrease of

195"

use

industry in the United States for
the year. 1958 versus
1957 will
compare as follows:
1958

that

tion in, products and the increased

dustry by giving just a few, but
important, figures.
It

been

in¬

the

such

been
u

publican party needed

now

simplify the busi¬

for

conferred with Eisenhower for an
hour and told him what the Re¬

St ass en

for

developments in
improved synthetic and steel cords

Important Data

I think I can

industry

/ childe" Harold

ral rubber for all

metals,

chemicals and

the rise.

being consumed, close cans who now
is made up of the various •feel'
about" as
tSargeron
synthetic rubbers the industry now low as the bot¬
uses, and in which there are ample
tom of the ocean. Of course, there
capacities. There have been con¬ is a
price tag to "ye childe's" will¬
tinuing and important, develop¬
ingness to help. Nixon, who has
ments in additional new synthetic
done so much for the party thus
rubbers that equal or exceed, natu¬ far wilThave to be sacrificed. "Ye

greater

giving

raw ma¬

goods have
point and are

low

to 65%

Therefore, it is true that we are

aircraft, mis¬
siles, electron -

Stassen's purpose being so per¬
fectly apparent, it is amazing that
by the two-party politi¬ President Eisenhower let him use
cal system will be cheered by the the White House as a sounding
news that "ye
" r", board for his statement.- He had
•

be served

industry which I think should
mentioned is that, ,of the total

The prices for our products h.ave
at a much slower rate

than for the economy as a

the fields of

ics,

ber

America

advanced

important in

All persons who think well of
their country and think it can best

One important factor in the rub¬

cities.
.

ucts,

and

No big rise in prices is antici¬
pated, although prices for some of
the industry's products did erode
too much in the recession period
and peed to be improved.

research

of the N

By CARLISLE BARGERON

capital
expenditures have been held down willing to help
for 1058. They will be loosened up
reorganize,; i t.
He has always
for 1959.
j

is composed

United. States

752

their

New. authorizations

companies, with
1,834
making 40,000 products

1,493

recalled

finished

and

now

which has made
possible.

The rubber industry

companies

Industry inventories of
terials

these developments

—

Ahead

per week are
back to full five and six days.

reached

carcasses,

great deal of money on

have

laid-off workers,

our

Washington

laid-off

working hours

now

improved treadwear, greater com¬
and far greater safety than
ever before.- The industry spends
and development

quite di¬

versified

tire

the

cords

the

From

industry has begun.

plants

our

60%

fort

dustry has be¬

industry.
steel

employment

Thursday, November 20, 195&

all-time record.

new

workers in the

and stability

of synthetics provide greater stature

use

set

and other leading commodity exchanges

radiotelegraph

circuit to Honolulu

SAN FRANCISCO

•

LOS ANGELES

39 Offices

•

NEW

YORK

Serving Investors

•

CHICAGO

'}
■>

Volume 188

Number 5796

The Commercial and Financial Chronicle

...

High School District

(2091)

School District

•
;

Los

Junior

•

Angeles County, California

W.;

College District

;

3Vz% Bonds, Election 1958, Series B
Dated December 1,1958

Dye December 1,

1959-83, incl.

Payment and Registration

ISSUES, AMOUNTS, MATURITIES

Principal and semi-annual interest (June 1 and December 1) payable, at the option of
the holder, at the office of the Treasurer of Los Angeles County in Los Angeles, Cali¬
fornia,

of the fiscal agencies of Los Angeles County in New York, N. Y„

or at any

AND YIELDS OR PRICES

(Accrued interest to be added)

Chicago, Illinois. First coupon
denomination

(annual) payable December 'l, 1959. Co'uport bonds in
of Si,000 registrable only as to both principal and interest.

•'

■

Tax

In the opinion

Exemption.

,:-t

*''

Angeles.,City High School District

of counsel, interest payable by the Districts upon their bonds is
Los

under existing statutes, regulations and court decisions.

eligible

are

security for deposits of public

Purpose and Security

•'

•;

moneys

>-•

400,000

600,000

"c-

400,000

;

120,000

;

400,000

6oo,qoo

2.60%

1963

2.70%

400,000

120,000

1964

2.80%

400,000

120,000

1965

2.90%

400,000

120,000

1966

3.00%

600,000

400,000

120,000

1957

3.05%

600,000

400,000

120,000

1968

3.10%

600,000

400,000

120,000

1969

3.15%

6oo,ooo

400,000

120,000

1970

3.20%

400,000

120,000

197)

3.25%

400,000

120,000

1972

400,000

120,000

1973.

600,000

•

600,000

'
„

3.30%

Ti/xGain, Amortization of Premium

i*'

600,000

initially issued by the above named political subdivision

600,000

400,000
400,000'

less than their par value, and a taxable gain may accrue on bonds purr
chased at a discount. Investors are required under existing regulations to amor-

600,000

400,000

600,000

400,000

These bonds will be

600,000

at not

tize any

premium paid thereon.,

•

600,000

600,000
•

600,000

Legal Opinion

The above bonds
listed below

offered when,

are

well

other underwriters

shown whose

not

names

600,000

and if issated and received by the underwriters

3.40%

1976

3.45%

120,000

19 77

3.45%

120,000

1978

100

120,000

1979

100

120,000

1980

100

•

„

120,000

1981

3.55%

120,000

1982

3.55%

.120,000

1983

3.55%

400,000
-

400,000

Los Angeles, California.

The First National City Bank

Bank of America

The Chase Manhattan Bank

Harris Trust and Savings Bank

Bankers Trust Company

of Now York

H. T. tL S. A\

J. P. Morgan & Co.

aniF Trust Company

The Northern Trust Company

Chemical Corn Exchange Bank

Drexel & Co.

Lazard Freres & Co.

California Bank

American Francisco
Trust Company
* San

Security-First National Bank

Smith, Barney &Co.

Guaranty Trust Company of New York

Incorporated

"/>

The First Boston Corporation

Blyth & Co., Inc.

Continental Illinois National Bank

lot Angeles

R. H. Moulton & Company

Glpre, Forgan & Co.

of Chicago

Merrill Lynch, Pierce, Fenner & Smith

C. J. Devine & Co.

Ladenburg, Thaimann & Co.

Hornbiower & Weeks

E. F. Hutton & Company

■

Bacon, Whipple

A. M. Kidder & Co., inc.

Co.:

Company

Clark, Dodge & Co.

William Blair & Company

Francis I. duPont & Co.

John Nuveen & Co.

Newark, N.J.

Trust Company of Georgia

The Philadelphia National Bank
Reynolds & Co.

National State Bank

Lee Higginson Corporation
Wertheim & Co.

Andrews & Wells, Inc.

First Southwest Company

Schoellkopf, Hutton & Pomeroy, Inc.

Bacon, Stevenson & Co.

C. F. Childs and Company

Incorporated

R. S. Dickson & Company

First Western Bank & Trust Co.

Incorporated

Gregory & Sons

W. E. Hutton & Co.

Roosevelt & Cross

Wm. E. Pollock & Co., Inc.

G. H. Walker & Co.

Youngberg

City National Bank and Trust Company

H. E. Work & Co.

Chas. E. Weigold & Co., Inc.

Juiien Collins & Company

A. G. Edwards & Sons

Robert W. Baird & Co.
Incorporated

Field, Richards & Co.

Fahnestock & Co.

City National Bank & Trust Company
Kansas

•"

Incorporated

L. F. Rothschild & Co.

Incorporated

Stone &

The Illinois Company
11

New York Hanseatic Corporation

W. H. Morton & Co.

Co.

Fitzpatrick; Suiiivan & Co.

Hirsch & Co.

San Francisco, Calif.

Incorporated

Laurence M. Marks &

J. Barth & Co.

(Incorporated)

Shearson, Hammill & Co.

Mercantile Trust Company

William R. Staats & Co.

Laidlaw & Co.

Stroud &

R. W. Pressprich & Co.

Oregon

Dean Witter & Co.

Bear, Stearns & Co. '

Seattle-First National Bank

The First National Bank

Coffin & Burr

and subject to approval of legality by Messrs. O'Melveny & Myirs, Attorneys,

request,

Haupt & Co.

3.40%

120,000

400,000

600,000

will be furnished on

3.35%

;

1975

120,000

400,000

1974

i120,000

-400,000

600,000

Ira

2,40%

1962

120,000

2.15%

1951

1.90%

1960

120,0Q0

400,000

600,000

1959

120,000
,

Price

Due

$120,000

$400,000

*■

'600,000
'

comprise separate issues of three distinct districts. The bonds of
each issue in the
opinion of counsel constitute the legal and binding obliga¬
tions of the issuing district and are
payable, both principal and interest, from
ad* valorem-taxes which may be levied without limitation as to rate or amount
upon all of the taxable real property in the issuing District and which, under
the laws now in force, may be levied without limitation as to rate or amount
upon all taxable personal property, except" certain classes thereof, in the
■*
issuing District.
'
T

.College

School*,

$600,000
-

Yield

Junior

City

High

These bonds

Angeles City Junior College District

School

in California.

$3,000,000

•

Los

Legality for Investment
We believe these bonds are legal investments in New York for trust funds and sav¬
ings banks and in California for savings banks, subject to the legal limitations upon
the amount of the bank's investment, and are likewise legal investments in California
for other funds which may be invested in bonds which are legal investments for sav¬

Angeles City School District

ings banks, and

$10,000,000

exempt from all present federal and State of California Personal Income Taxes
.

$15.000,000

Los

■

City, Mo.

First National Bank in Dallas

Ginther & Company

of Chicago

Kalman & Company,

Keah, Taylor & Co.

inc.

Burns, Corbett & Pickard, Inc,

Blunt Ellis & Simmons

F. S. Smithers & Co.

Northwestern National Bank

Carl M; Loeb, Rhoades & Co.

Tripp & Co., Inc.

J. R. Williston & Beane

Minneapolis

Dittmar & Company, Inc.

Dallas Union Securities Company

Commerce Trust Company

First California Company

Kansas City, Mo.

The Fort Worth National

Bank

Glickenhaus & Lembo

McDonnell & Company

Wm. J. Mericka & Co., Inc.

in NashviHe-

Incorporated

Corporation

Spencer Trask & Co.

Kenower, MacArthur & Co.

J. A. Hogle & Co.

Lawson, Levy, Williams & Stern

Irving Lundborg & Co.

....

Stern, Frank, Meyer & Fox

Shuman, Agnew & Co.

Provident Savings Bank & Trust Company

Thornton, Mohr and Farish

third National Bank

Hill Richards & Co.

Robert Winthrop & Co.

Stern, Lauer & Co.

Taylor and Company

Zahner and Company

Wood, Gundy & Co., Inc.

Breed & Harrison, Inc.

Federation Bank and Trust Co.

Fahey Clark & Co.
'

The First Cleveland Corporation

Lyons & Shafto

The National City Bank

Incorporated

Frantz Hutchinson & Co.

of Cleveland

Stubbs, Watkins and Lombardo, Inc.

The First National Bank

Newhard, Cook & Co.
'

THney and Company

■

«.

Memphis

Ryan, Sutherland & Co.

First National Bank
ol Minneapolis
,...

The First National Bank
of St. Paul

Stein Bros. & Boyce

Seasongood & Mayer
.

Wachovia Bank and Trust Company

R. D. White & Company

November 19, 1958

circular relating to these

bonds

may

be obtained from any of the above underwriters, as well as ether

underwriters not shown whose

names

will be furnished

on request.

(2092)

The Commercial and Financial Chronicle

Dealer-Broker Investment

Recommendations & Literature

...

COMING

EVENTS

NSTA

Notes

interested parties the

pleased
following literature:

30-Dec.

Nov.

TWIN

CITY

SECURITY TRADERS

Atomic Confer¬
Philips Lamps and Cenco Instruments
Corp. — Atomic Development Securities Co., Inc., 1033
Thirtieth Street, N. W., Washington 7, D. C.

Security

election

Dec.

1958, at the Calhoun

Beach

meeting

Donald

—

President.

able is current Foreign Letter.,

Bankers

—

Current information

—

Insurance

Industry—Review—Milwaukee

Company, 207

East Michigan Street, Milwaukee 2, Wis. Also in the same
circular are brief reviews of Transamerica Corporation, U. S.
Life Insurance Company and Travelers Insurance Company.
Market Outlook and Selected Securities—Bulletin—E. F. Hut-

ton & Company, 61 Broadway, New York 6, N. Y.
November Recommendations—C. M. Oliver & Company,

Lim¬
ited, 821 West Hastings Street, Vancouver 1, B. C., Canada.
Of the People, by the People, for the People — An informal
analysis of tax-free public bonds (municipal bonds)—E. H.
Davis—John Nuveen & Co., 135 South La

Salle Street, Chi¬

3. 111.—cloth—$$3.75.
Over-the-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
cago

used in the National Quotation Bureau

Averages, both as to

yield and market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4. N. Y.

Utility Earnings Can Be Utility Dividends—Report—Gregory &
Sons, 72 Wall Street, New York 5, N. Y.
*

Company, Limited, 50 King Street, West, Toronto,
Ont., Canada.

II.

Bohack

Co., Inc.

— Review
Edwards & Hanly, 100
Street, Hempstead, N. Y.
Celotex—Data—Herbert E. Stern & Co., 52 Wall Street, New
—

North Franklin

York 5. N.

Cluett Peabody &

Co.—Memorandum—Woodcock, Hess, Moyer

& Co., 123 South Broad
Sti*eet, Philadelphia 9, Pa.
Cog Minerals Corporation—Bulletin—Russell Investment Com¬

Boston Building, Denver 2, Colo.
Continental Can Co.—Data—Alfred L. Banden Broeck &
Co.,
55 Liberty Street, New York
5, N. Y. Also in the same cir¬
pany,

cular

data

are

Gillette Co., Motorola Inc., and Otis Ele¬

vator Co.

Detroit Edison

Company—Analysis—Blyth & Co., Inc., 14 Wall

Street, New York 5, N. Y.
Dresser Industries

Milk

data

—

Data—du

Pont, Homsey & Company, 31

Street, Boston 9, Mass.
on

Also in the same circular are
Republic Steel and F. W. Woolworth.

Fluor Corporation

—
Analysis — Bacon, Stevenson & Co., 29
Broadway, New York 6, N. Y.
General Telephone-Sylvania Electric Merger —
Appraisal—
Schweickart & Co., 29 Broadway, New York 6, N. Y.
H. L. Green Company Inc.—Data—Abraham &
Co., 120 Broad¬
way, New York 5, N. Y. In the same circular is a survey of

Harris Intertype.

Hamilton Manufacturing

Company

Analysis —Loewi & Co.
Incorporated, 225 East Mason Street, Milwaukee 2, Wis. Also
in the same circular is an analysis of Suburban Gas Service.
Indianapolis Power & Light Company — Review — The First
—

Raymond B. Garcia

Corporation, 15 Broad Street, New York 5, N. Y. Also

study of the County Trust Co.
Kerr-Magee Oil Industries, Inc.—Memorandum—Green, Ellis &
Anderson, 61 Broadway, New York 6, N. Y.
Knox Glass,
Inc.—Analysis—Hayden, Stone & Co., 25 Broad

Street, New York 4, N. Y.
Loft

Candy

—

Memorandum

—

Kennedy Opens

(Special to The Financial Chronicle)

LOS

ANGELES,

Calif. —Ken-

field E. Kennedy is conducting a
securities business from offices at
6363

Wilshire Boulevard. He has

recently been with McCormick &
Mid Town

Securities

Corp., 30

Co.

East 60th

Street, New York 22, N. Y.
— Analysis —
Muir Investment
Corp., 101 North St. Marys Street, San Antonio 5, Tex.
Magma Copper Co.—Analysis—Thomson &
McKinnon, 11 Wall
Street, New York 5, N. Y.
Magnavox
Review—Ira Haupt & Co., Ill Broadway, New
York 5, N. Y.
Magnetic Amplifiers, Inc.—Memorandum—Myron A. Lomasney
& Co., 39 Broadway, New York 6, N. Y.
J. P. Morgan & Company, Inc. — Bulletin —
Laird, Bissell &
Lone

Star Brewing Company

—

Forms Prime Investors
BROOKLYN,
Weinstein

vestors

has

Morris

—

Prime

formed

Inc.,

Programs,

Weinstein
per

In¬

with

fices at 362 Berriman Street.

of¬
Mr.

formerly with Cap¬

was

& Co., Goden-Dersch Inc. and

Hirsch & Co.

Meeds, 120 Broadway, New York 5, N. Y.
National Starch Products Inc.—Bulletin—De Witt Conklin Or¬

ganization, 120 Broadway, New York 5, N. Y.
Nippon Gas Chemical Industries—Analysis in current issue of

"Monthly Stock Digest" — Nomura Securities Co., Ltd., 61
Broadway, New York 6, N. Y. Also in the same Digest is an
Ohio

State

street &

Life Insurance Company—Analysis—Clark, LandKirkpatrick, Inc., Life & Casualty Tower, Nashville

3, Tenn.
•
Indemnity Co.—Memorandum—Blair
rated, 20 Broad Street, New York 5, N. Y.

Julius Shaffer Opens
Julius

Shaffer is conducting a
securities business from offices at
565

Fifth

Pubco

Co.

City,

with

;

With Laird & Co.
Daniel

Corp.—Data—Taylor, Rogers & Tracy, Inc.,
105 South La Salle Street, Chicago 3, 111.
Pure Oil Co.—Review—Francis I. du Pont &
Co., 1 Wall Street,

Y'ork

previously

was

Bache & Co.

Co., Incorpo¬

Petroleum

New

Ave.,

under the firm name of J. Shaffer

...

Pacific

McVey has become
Company,
Corporation, 61 Broadway, New
York City, as registered represen¬
associated with Laird &

New York

tative in the institutional sales de¬

lists of

partment.

5, N. Y. Also in the same circular are selected
convertible bonds and convertible preferred stocks.

Sedgwick County, Kans. General Obligation Bonds—Circular—

Davidson-Vink-Sadler,

Inc.,

Beacon

Building,

Wichita

Max Planer

Kansas.
Southern Nevada Power

Company—Analysis—G. A. Saxton &
Co., inc., 52 Wall Street, New York 5, N. Y.
A. E. Staley Manufacturing Co. — Memorandum — Mitchell,
Hutchins & Co., 231 South La Salle Street, Chicago 4, 111.
Stepan

Max

Planer, for 30 years asso¬
ciated with Cohen, Simonson &
Co., New York City, passed away
Nov. 12 at the age of 64.

Chemical Company—Analysis—Shearson, Hammill &
Co., 14 Wall Street, New York 5, N. Y. Also available is a

Capital Reserve Branch

report

ALEXANDRIA,

four Hartford Insurance Companies

(Aetna Life

Insurance

Company, Connecticut General Life Insurance
Company, Hartford Fire Insurance Company, and Travelers
Insurance Company.)
Studebaker-Packard vs. Botany Mills—Report—Lerner & Co.,
10

Post

Office

Va.

Capital

—

Reserve Corporation has opened a
branch office at 121 North Fairfax

Street

under

the

management.of

Elbert M. Goodson.

Square, Boston 9, Mass.

Timken Roller Bearing—Analysis—Halle &

Stieglitz, 52 Wall

Street, New York 5, N. Y.
United States Pipe & Foundry

Company—Analysis—Gruntal &
Co., 25 Broad Street, New York 4, N. Y.

Warner-Lambert

Bissell

Pharmaceutical

Company—Review—Laird;,

Meeds, 120 Broadway, New York 5, N. Y.

Warner-Lambert Pharmaceutical

—

Report

—

STATISTICIAN.

J. R. Williston &

Beane, 115 Broadway, New YTork 5, N. Y.
Union
Analysis — Reynolds & Co.,

Western

For

National Security Traders Asso¬
ciation Annual Convention at
f.

K. EL
Boston

available is

(Boca Raton, Fla.)

the Boca Raton Club.

Minneapolis, Treasurer.

analysis of the current Japanese economic situation,

Algoma Steel Corporation, Limited—Analysis—McLeocl, Young,
Weir

y.'/-

Yamaichi Securities

Company of New York, Inc., Ill Broadway, New York 7,
New York.
Life

.jKkj

Amer¬

XL XX

Nov. 2-5, 1959

retary, and George T. Eggen,

meeting at the Hilton

Hotel.

Northwestern National Bank of

Japanese Stocks

Association

ica annual

Lloyd H. Siverson,

Exchange"—The Exchange Magazine, 11 Wall Street, New
N. Y.—20c per copy; $1.50 per year. Also in the same
issue are an analysis of MIP Investors and a discussion of

Donald N. Anderson

New

April 1-3, 1959 (San Antonio,Tex.)
;Texas Group of Investment

Kalman&Co.,was elected Sec¬

York 5,

10, 1958 (New York City)

dorf Astoria. Guests invited.

Bank

Incentive Plan Benefits—Discussion in November issue of "The

dividends.

convention

annual

York annual dinner at the Wal¬

Anderson, First
of
St. Paul,
was
elected
President, and
Raymond
B.
Garcia, J. 1V1.
Dain & Co., was elected Vice-

View
Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

common

America

the Americana Hotel.

Investment Association

Hotel, Minneapolis.

National

request— New York Hanseatic Cor¬

poration, 120 Broadway, New York 5, N. Y.
Buraham

City

annual

Stocks—Quarterly comparison of leading banks and trust
on

Twin

Nov.

navy,

companies available

(Miami

Traders Association held their

Atomic Letter No. 42—With reports on Geneva

Bank

1958

Investment Bankers Association

ASSOCIATION

the nuclear

Field

Beach, Fla.)

The

ence,

Investment

It it understood that the firms mentioned will he
to send

Thursday, November 20, 1958

120

ANALYST

Broadway,

New York 5, N. Y.

financial institutions

industry and
Tire &

Also available is a review of the Textile
analyses of Briggs & Stratton and Mansfield

Rubber.

College graduate, 34

Trading Markets

years

old, with extensive experi¬

M. A. Manna
The Hanna

Invitation to N.A.S.D, Members

A & B

Mining Company

Selling

of 492,400

company

discount

write

Troster, Singer & Co.
Members Aew York

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype NY 1-376-377-378

position

Would

being formed. Long form S.E.C.

2%.

Real

with history of earnings and

liberal dividend record.

ing

desires

statistician-analyst.
group

registration
estate

ence

for

wire for

this

Excellent underwrit¬

high-type

deal.

appreciate
view.
S

1120,

Company

Street, New York 5, N. Y.

BOwIinff Green 9-6850

Box

Commercial

Chronicle,

Financial
Park

15 William

inter¬

write

Call,

Prospectus and information.

Louis L. Rogers

personal

Please

Place,

New York.

New York

Number 5796

Volume 183

The Commercial and, Financial Chronicle

(2093)

like to know what the other fel¬

Growth Stocks foi 1959

low is

doing and to learn the facts

that motivate his actions.

There

He also suggests'

some non-

and others in

similarly-are expected to achieve desirable
growth. The banker cautiously suggests companies be con¬
sidered for the long-term as there is no assurance they will
register a positive start in 1959*
•

mon

volve the
200*

that stock prices will continue to
result of

1959
earnings

year

increased

ternative

reasonably opti¬
future,
but I have lived long enough in

mistic

this

to the near-term

world

that

alternative

such

thing as absolute cer¬
am hopeful that corpo¬
rate earnings will show a satisfac¬
tory increase in 1959 as compared
no

tainty.

with

After
reviewing
companies in these

selling

and

others

believe

the

should

programs

staff.

our

We talk

to many

having

are

companies whose
stocks may be considered
for

Taking

promising

common

prospects

for growth.
personal selections.
you
were
to compare notes
with some of my associates, I am
certain
they would have some

been

other

additional

differences

these

that

make

realize

search
You

high
cess

not

batting

have selected

the

have

with

suc¬

industries, I

stocks I

for

that

youthful
sonable

growth

the

enough

have

for

the

rea¬

ing

companies

gory:

are

this cate¬

R. R. Donnelley & Sons Co.,

Kaiser

Aluminum

and

Chemical

Corp., Stauffer Chemical Co., Sun¬

the

are

Corporation,

Trane

Com¬

and U. S. Life Insurance Co.

City of New York.

others,

and

discover

our

them

There

assignment
through

re¬

period of
have

growth.
a

the companies

years

selected will

I cannot

achieve this

Jones, Kreeger Co.
Is New Firm Name

that

assure you

positive start will be made in

the

1959.

year

will

you

use

these stocks in reasonable amounts
in accounts that

can

afford to be

long-term investors, I have every
confidence that the

common

stocks

of these companies will work
for you.

hard

v!-:-

WASHINGTON, D. C.—Max A.
retired from partnership
Jones, Kreeger & Hewitt Nov.
13,
and
the
firm
name
was
changed to Jones, Kreeger & Co.
as
of the same date.
The firm,

Hewitt
in

members of the New York Stock

Exchange, is located at 1625 Eye
Street, N. W.
;
'
:

This advertisement is neither

The

offer to sell

nor a

solicitation of offers to buy any of these securities.

offering is made only by the Prospectus.

November

NEW ISSUE

18, 1958

■■/

$100,000,000

International Bank for Reconstruction

has

and

The

cents.

Development

paid in 1957.

were

achieved

Fifteen Year Bonds of

1958, Due December 1,

1973

excellent

Interest Rate 4/^%

liberal amount of retained

confident

it will

that

knowledge

your

continued

well

come

con¬

Price 100%
Plus accrued interest from December I, 1958.

not

new

Again, there may be other com¬
panies in these industries that you
would
prefer to own based on

assurance

that

logical

industry

seems

Aluminum

long until they are reporting
all-time high net incomes.

con¬

promising prospects

growth.

cline in their earnings during the
current business recession, but I

sider to have

assume

of the opinion that

common

Co.

dition is strong. Admittedly, some
of them have experienced a de¬

eight industries and

common

the basis of

the

earnings; and their financial

certain companies in those indus¬

tries whose

of Continental Assurance
the
return
is
only 0.75%.

case

earnings
over a reasonably long period of
years;
they have financed their
growing financial
requirements

re¬

consideration

many

stock

reduced

rate

companies, in my opinion,
enjoy excellent management; they

science.

average in
selections.

careful

merits

exact

to 3.1%

Reynolds Corp. Mgr.
ForHempbiH,NoyesCo.

These

it if you have

dividend

amounts

opinion
interesting.

investment

well

of your

After
the

that

1.7%

of these current annual dividends and in

others will probably pay the same

work

our

selections.

investment.

trust

tabulation, I have shown the
earnings and dividends paid in
1957; but I have not shown the
estimated figures for 1958. I must
admit that many of the companies
will report lower earnings in 1958.
Also, I should point out that the
annual

are

managed

panies
their

and

these

com¬

confidence

your

managements.

Copies of the Prospectus may be obtained from any

these

to act as

dealers in securities and in which life Prospectus may

legally be distributed.

ternative decisions result from my

•An address by Mr. O'Hara before the
27 th
Mid-Continent
Trust
Conference
sponsored by the Trust Division of the
A. B. A., St. Louis, Nov. 6, 1958.

of the several underwriters, in¬

cluding the undersigned, only in States in which such underwriters are qualified

al¬

companies in those industries will

selections, the end result is beneficial

both

customers.

our

business,

and

our

•Price

Aluminium

Ltd.

Aluminum Co.

♦Recent

Range

Aluminum:

Market

Earnings

$1.37

3.55

1.20

Morgan Stanley & Co.

Corporation

$0.90

60-133

The First Boston

Dividends

26-

America

—1957 Per Share-

The First National City Bank

of New York

Incorporated

§1.78

1.20

76-131

128

5.09

$2.65

84-133

116

4.45

3.60

3.30

1.90

Minneapolis-Honeywell

58-131

3.07

1.75

Motorola, Inc

36-

4.04

1.50

35-

1.36

0.80

77-183

159

4.65

1.20

60-112

105

3.03

1.40

117-176

175

7.31

3.00

—

49-

_*__

Eastman Kodak

Union Carbide.

Bankers Trust Company

The First National Bank of Chicago

Manufacturers Trust Company

Chemical Corn Exchange Bank
37-

Electronics:

Guaranty Trust Company of New York

Continental Illinois National Bank

Drug:
Abbott Laboratories..

•

The Chase Manhattan Bank

J. P. Morgan & Co.

Chemical:
Dow Chemical

HarrisTrustandSavingsBank

and Trust Company

Insurance:

Continental Assurance

—

Continental Casualty
Hartford Fire Insurance—

Blyth & Co., Inc.

Bank of America
N.T.&S.A.

TheNorthernTrustCompany

of Chicago

Kuhn, Loeb & Co.

Dillon, Read & Co. Inc.

Fiberglas:

Owens-Corning Fiberglas.

Drexel &Co.

Goldman, Sachs & Co.

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

Kidder, Peabody & Co.

Lazard Freres & Co.

Harriman Ripley & Co.
Incorporated

Paper:
Crown Zellerbach

International

43- 70

2.66

1.80

82-144

—

Paper...

117

6.17

$3.00

84-152

122

11.38

5.94

$2.50
$2.35

Lehman Brothers

Merrill Lynch, Pierce, Fenner

& Smith

Salomon Bros. & Hutzler

Petroleum:
Gulf Oil Corp

______

Texas Company
•Since

Jan.

$For the year

—

53-

1956.
tAs of Oct. 31, 1958.
ended May 31, 1958.

are

income.

the

tries that I believe have continued
These

common

suitable

few indus¬

the
indus¬

eight

common

cor¬

all of these factors into consider-

tion I have selected

became

I have selected

re¬

not immune from

prejudices/'

our

stocks of the follow¬

reply, I

the

a
few that appear to
promising prospects, based
assumption that the com¬
panies will be able to produce
increasing earnings in the years
ahead. (See accompanying table).

^nd visit many
plants. We are human; and there¬
fore, we have our likes and our
dislikes.

Robson

the

officers

porate

have

spend many hours on our own
search
and that of members

the

that

current

Many of the growth stocks that
I have selected produce a return

stocks

adopted.

result

funds

and

interested

the

pany,

many

tries, I have selected the

going to do a good job
our own organizations

are

stocks of many

individuals

companies are selling at very high
prices
relative
to
current
per

beam

Selection of Industries

Some

Selected Companies

Most analysts have very definite
opinions. We have to have them

preferences.

these selections.

1958.

have

good will result from the discus¬
sions
that
are
precipitated
by

there

know

preferences.

presented my selections so as to
provide you opportunity to agree
with them or to substitute your

that will be achieved by most cor¬

porations.

George

Stephen C. Reynolds Jr. has be¬
associated with Hemphill,
Noyes & Co/ 15 Broad Street, New
share earnings.
You might ask There will have to be a substan¬
York City, members of the New
if there are a few common stocks
tial growth in earnings in the York Stock
Exchange, as manager
that do not yet enjoy this general
years
ahead to justify current of the corporate bond department.
leum.
There are other desirable
acceptance but appear to have
industries, and you may have al¬ promising prospects for growth. prices. I am confident that over

with

during the entire

com¬

stocks of about

common

companies.

common

select list of

stocks, commonly referred to
blue chips.
This may in¬

the

great humility that achieve increasing earnings in the
I embark on the project of select¬ years
ahead.
The industries I
ing a few common stocks that will have selected include aluminum,
chemical, drug, electronics, Fiberprove to be growth stocks in 1959.
This implies that I am confident glas, insurance, paper, and petro¬

criticism

common

Of Walsfon & Co., Inc.

Conclusion

Vice-President of Walston & Co.,
High grade corporate bonds are
an
over-concentration of buying selling at prices to yield 4.50% Inc., 74 Wall Street, New Yorkon
the part of institutions, en¬ to 4.75%, and it must be admitted City, members of the New York
Stock Exchange, on Oct. 27..
dowment
funds, pension funds, that such yields are attractive to

blue chips that

rise

George Robson V.-P.

today to the effect that there is

Chicago hanker presents eight industries and certain companies
in those industries offering promising growth prospects and

when, we may not have
others who agree with us.

Other Companies

Vice-President, The Northern Trust Company, Chicago, 111.

them
many

By ARTHUR J. O'HARA*

trust investment considerations.

search and to have the courage of
convictions
by purchasing

our

JAUo

pays

dividends In stock,

Smith, Barney & Co.

Stone & Webster Securities Corporation

White, Weld & Co.

The Commercial and Financial Chronicle

(2094)

funds.

our

Retiring Chairman, National

Our

That

underdeveloped countries. The retiring spokesman

and

naturally.

concern

evident in

was

did not allow

our

concern

into

that

knew

inventories

could

wits

with

difficulties

the

•

"'T

;

•

■

hour of

American

business.

of overall

policy

Two

are

can—it must—choose

ness

Busi¬
one

the other. One
offers

ing

partial

recovery

The

1959.

and

—

demands
A surge

more.

ahead to years
of
balanced

growth.

work for it. If
we

build it.
choose'

the

H. JR. Silverman

harder

each.

road.

eector of American business must

willing to do its
policy for com¬
companies as a
part of the financial industry as
much as it is one for any of the
manufacturing or distribution or
service industries
that we help
ready

and

This

chare.

mercial

finance

finance.

Business

must

choose.

fact,

all Americans must choose, for the

policies of labor
organizations,
legislatures and all the other in¬
stitutions
alongside business in
American
course

Shall

life

will

support

one

hands

and

Our

worth

let blind
*An

sit

our

markel forces

address

and

now

the

misled

war

normal

flation

j; -

allow ourselves to

into the belief that in-

must

similar

outside

catastro¬

phe,

re¬

...

Nor must
be

Recovery

Basis for

Lay

clients

Our

were

able

•

revival.
money supply has expanded
than
the
volume
of goods

The

less

make

industry's recent record is

reviewing.

carry

Mr. Silverman before
the 14th Annual Convention of the Com¬
mercial
Finance
Industry,
New
York
City, Oct. 27, 1958,

it; we don't have to do that.
reputation as a ready source
of funds and specialized financial
services, in the amounts and kinds
required, has been growing year
by

year.

Job we did in providing
working capital and freeing
equity capital during recession is
we

can

repeat

during economic

pansion.

Boom's

accompany

ex¬

In the face of

industry

there would be

our

anticipated that
greater need for

the

our

nation's

designed to
taking
calculated risks, risks that other
lenders are not equipped to eval¬
uate, but we insist they must have
curb. We

are

was

accustomed to

economic basis.

sound

That

this, what did

Excesses

contraction and which

market.

role

our

the

■

sales volumes will riise for
many companies. Rising sales will
require rising inventories, even
when
they are well controlled.
Indeed, in some instances, the rise
in

inventories

rise

are

not

$2,160,000

set

of volume, of
improving volume,

commercial

play

can

finance

sales

will

because

key

for

role

climate, can now
production,
pricing,
market
and
sales
policies: that
helped other companies get out
of
the cost-price-profit squeeze.

many

businesses. .Our

companies oper¬
ate
coast-to-coast,
they
enter
associations with small, medium;
and
large businesses and they
serve almost every type of
indus¬
try. We have the broad experi¬
ence and the scope of operations
that make our institutions unique
in the financial structure of the
nation.

Our

In Restoring Volume
can

commercial

how

many

4Vsc/c

tial

Equipment Trust Certificates

the

can

But I submit that the" commer¬

cial finance industry has

responsibility,

manage¬

Our

business.

received

have

obstacles.

country.
companies in

our

to the

larger

responsibility to
More than half the
a

our conference go
public for part of the funds

which

are

our stock in trade.

quasi-public industry with
obligations, too, to the public that
has financed our own growth.

are

funds

release these

How to Get Ready for the Next

managements to do the job they
capable of doing.

(Philadelphia Plan)

and our services

our

acknowledge¬
trying months o
1957 and 1958 we have managed
to
serve
them
in
spite of all

aggressive¬
dissipated, whose imagi-^
nation is curbed, whose efficiency
is drained by lack of opportunity
because working and equity capi¬
tal are inadequate for the poten¬

Equipment Trust, Series 46

can

ment that in the

ness

'j'

first

fi¬

nancing play in helping their cli¬
ents meet the requirements for
restoring volume? What are those
requirements?
An aggressive,
imaginative, efficient manage¬
ment, first of all. There are many
Yet

services

our

existing companies can
help. Our clients, are
responsibility arid we
have always recognized our obli
gations to serve them. On all sides

do, with

role

and

ents from

ments there are whose

Illinois Central

funds

; This,
briefly, is the picture-—
part of it. It's what our present
and past clients have done or will
do and what our future new cli¬

The Role of Commerial Financing

such.

the

help them.

;

What

business

able

adopt

industry

money

We have the

lenders

restoration

our

accounting
and other specialists who are able
to
see
to
it that, in
situations
other

the

continuously

We did that without encouraging
speculative expansion, speculation
in inventory or any of the other
evils that helped to bring on the

...

industry do?
Our

the

monetary policy

But the

new

that

Yet Our Industry Discouraged

crow

Our

Not

about

one

the other.

the

outpace the
they were
to
an
whose sale it must facilitate. Such- reduced
abnormally low
and
sell goods at a moderately
level.
Our inventory loan serv¬
inflation
as
we
have
had
has
high level, in spite of general re¬ come
ices
can
play a useful role in
mainly from wage bargains
cession.
!
and
;•
price
exactions.
Thus far easing such problems.
Or shall we decide to do the
Our clients were able to work
Historically there has been a
there is
no
prospect of a': new
things that will realize the tre¬ off their inventories when
that;
tendency for most inventories to
mendous potential „for
balanced was advisable without taking ex¬ wage-price or price-wage spiral. rise temporarily a bit more Ra¬
•'T '
\ •'*v'.'T'*.
growth in the American economy?. cessive losses; our funds saw them
pidly than sales in the early stage
) *
Restoration of Volume,
(
of recovery. Then they keep pace
through.
Pre-requisite to Expansion
Commercial Financing's
until the later stages of recovery.
Our clients were able to carry,
We have reached the incipient
Outstanding Recession Record
At
that
point inventories " rise
through modernization programs ,
stage of recovery. In many sectors
Our industry's services in mak¬
that cut their costs.
relatively to sales as market hori¬
of industry we have restored or
ing capital available that was ob¬
zons
expand to take account of
Investment, loans, money sup¬ are restoring
tainable nowhere else to arrest
profitable
opera¬
the coming business expansion. %
decline and promote growth in ply, credit volume—all the eco¬ tions. Yet the job is not done. If
There
again
funds
will
be
the
1957-58
recession make up nomic indicators were tumbling. the recovery is to. be speeded and
needed, perhaps in amounts ex¬
one
of the brightest chapters in But, as I said at the outset, our, completed, it must be a bridge "to
ceeding available profits, pur in¬
loans outstanding rose because our a
the saga of American finance.
period of sound, balanced ex¬
dustry can help to supply them.
funds were available not merely pansion. For that the
prerequisite
In spite of business contraction, on the scale at the
But it isn't only the expanding
peak of ex¬ is to restore volume while main¬
tight money, restricted credit, ris¬ pansion, but at a level some 7%
to which the months
taining the margin of profit.
r company
ing money costs, our industry in¬ higher.
ahead
offer
opportunities.
The
Volume after pressure on prof- <
creased its loans outstanding dur¬
company that lagged in adopting
In helping to stem the decline its has
squeezed the water out of
ing the past year by some 7%.
a
modernization program to re¬
and provide a basis for the re¬ costs is
the secret. of the effi¬
Most of our companies were close
duce costs, that had to mark time
covery, our industry did its share. ciency of the American. economy.
to this figure; some exceeded it.
while it waited for a more favor¬

broader scale
i

Similarly the use of

•

offers

other

creep¬

comeback

and

recession

vival.

Stem the

Then some time in 1960
or
maybe 1961 we'll get back to
where we were before the down¬
turn in the summer of 1957.

courses

open.

Our Industry Helped to

along?

decision for

the

overestimating

are

Decline,

This

estimated

situation, as they em¬
ployed their strategies to maintain
or restore profit margins.

for the
dollar
1959.

tion

our funds
requirements of
Indeed, we did that by encour¬ everyday
operations
can » free
aging the policies that would cor¬ working capital for research in
rect! the situations which brought adapting the product line to the
about the squeeze on profits in requirements of new markets and
1957.
In the fight to combat the in
developing complementary
excesses that threatened to push- products to
expand the line; Our
the economy into a depression,, we equipment loans serve as substi¬
did our part. We can take pride ? tutes for equity
capital, making it
in the role that the whole finan¬ possible for many companies to
cial industry^ played - in the-re¬ improve their profit
margins by
cession.
«
v
making
their
operations
more
We must not be misled by the-* efficient. They can also finance
boom psychology displayed, in the the introduction of new
products.
securities
market.
They
over¬
During the next year, barring a

lost.

they

the

market

industry predicts a $500 billion economy and a trillion
economy of the future—providing we set stage for it in

for

This is the responsibility
company's market promo¬
organization.
Its activities
also call for the advance of funds.
of the

dumping, without
forced liquidation.
We were not
fair-weather friends. We stood by
our clients as they matched their

industry in "development" commissions, nearby
Canada and Puerto Rico, export-import trade,

concerned

reduced without

industry's helpful role in the past recession, urges
industry to expand, and charts new financing oppor¬
such

wag

dismay.
*•
We knew that the declining rate
of profit could be arrested.
We

finance

areas

situation,

the

deteriorate

In depicting this choice before us and
the imperative need to seize the initiative rather than
sit
on our hands and let the blind market forces carry us along,
Mr. Silverman recounts with satisfaction the commercial

tunities for the

these

deliberations in 1956 and 1957. But
we

balanced economy.

the

industry

about

creeping, partial eco¬
ahead to an unending,

surge

from

—

knew would be needed.

and

Commercial Finance Conference

banks

obtained the funds

sources we

Now is the time to choose between a
nomic comeback in 1959

from

oped.

would

private • lenders, of institutional
investors,
of
public
investors,
loans

Thursday, November 20, 1958

money goes to the right,
place, at the right time, and in
the right amounts, at a cost that
is economically, justified by. the
realized
profits
that
otherwise

into the money market,
the funds of our stockholders, of

SILVERMAN*

By HERBERT R.

handle,

regular

our r

channels

Commercial Finance Industry
And an Expanding Economy
President, James Talcott, Inc.,

From

...

Stage of Growth

are

To be

mature

guaianteed

$87,000 semi-annualiy June 1, 1959

unconditionally

December 1. 1973. inclusive

as to payment oj par lalue and dividends b\ endorsement bi
Company
..
.
r
'

Illinois Central Railroad

Maturities and Yields

June 1959

3.25%

Dec. I960

3-90%.

Dec. 1959

3.55

June 1961

4.00

1963

4.25

June 1960

3.75

Dec. 1961

4.10

1964-7}

4.30

june 1962

4.15

Dec. 1962

4.20%

Unemployment still is serious,
Restoring volume requires, sec¬ and it is almost
certain to per¬
ond Of all, investment in Sales..
sist Substantially until we are we
It takes an adequate, competent
on the way toward a $500 billion
and
trained
sales
organization*
gross output. We are in a period
capable of carrying out a detailed of transition in which
a substan¬
sales plan. It requires advertising,
tial
amount
of
employment is
and promotion programs as inte¬
being shifted from the manufac¬
gral elements.. All this requires
turing product line to the manu¬
the advance of fund's, after a. pe¬
facturing equipment line. In the
.

riod

few, Jf

which

there'have

into the business.
Issuance and

sate

of these Certificates

are

subject to authorization by the Interstate Commen t Commission
UJfertng Circular may be obtained in any State in which this announcement is circulated from only
such
oj the unaerstgned and other dealer-, as max lawfully offer these securities tn such State

lne

the funds

company

ownership

PRESSPRICH & CO.

FREEMAN

McMASTER HUTCHINSON & CO.
November

13, 1958

come

And where
from?

come

its!

tution.

HALSEY, STUART &. CO. INC.

the

must

been

Our

can

restore

volume

and

the

transferred

from
labo
semi-skilled, th

the professional

This

provide
•

an., ex¬

means

that

workers

upgraded, not merely in
titles, description and pay
rate but in aptitudes and capaci¬
ties.
For some the training w'
take

time.

For

some

markets must be penetrated more I

new

markets devel¬

have

job

the task,4

panding! basis ^ also, requires in¬
beyond their native
vestment
in
markets.-1; Existing", These latter must shift
deeply; and"

seg¬

ments.

sales.effort largely self-financing.
To

skilled

financial insti¬

funds

being

market

willing to dilute
equity, the funds
a

the unskilled segment of the

Unless

the initial working capital needed
and our services can make the

& COMPANY

labor

are

from

of the shift'the demand*for

course

profits to plow, back

any,

;

Continued

abilities.
•

from' th

page 2

Number 5796

188

Volume

The Commercial and Financial Chronicle

(2095)

tivity ;iri the early stages
cyclical upturn. Although

The Business Outlook for 1959

not

expect

*>r

1959

A. MENNIS*

By EDMUND

Director of Research, The Wellington Company
Investment Managers of Wellington Fund

from

third

Stock market economist explains why he believes
stocks

1957

peaks,
improvement

some

area

think

industry.

neces-

customer

on a survey

has

the

his

expressed

re¬

action to the latest fashion in cars.
The current thinking in Detroit
appears to
suggest about a 5Vz

made, Mr. Mennis expects sharp rise in corporate profits in
1959 and expects sharpest recoveries to be made in industries

million

hardest hit in 1958.

too

car

early

but

year,
form
form

quarter

economic

ticularly

even
even

still

is
a
a

nre-

pre

What is the
1959?

turn

organization has
some
exploratory work in
estimating corpQrate profits based
on
the outlook I have just given
A

recent

analysts

survey

rather

There
can

the

rate

yfear may be somri 25% above
those of 1958, which, in turn, are
estimated about 18% below 1957.;

lar to that of 1958 would

forecasting, as I see it, is to inform
employers of the most prob¬

not

able

course

future

certainly

events,

that

reason¬

before

business

able

tion

the

keep his fore¬
current.

cast

By this I mean

periodic

Edmund

Mennis

ness

1959.
In

turn

the

during

which,

before

it
a

must

argued,

full recovery can

areas

mas, at-least, before
reliable
feel
of
the

we
*

have

automobile

market.
A

fourth

critical

area

the

steel

industry, not because of its
recovery
from
depressed
levels, but rather because of labor

negotiations that will take place
next summer. The automobile in-

diistry

made

strong

stand

spring

peaks

ate

trite,

not

stocks.

market

The

that

securities

difficult

new

question

has

forecast 01
question:

the

1959

this

will

torically

has

indicator

a steel strike?
How long
might it last? What will be the
impact on industrial production?
A strike of six to eight weeks'
duration
would
depress
third

rise.

The

Anticipated
that

moving up
Such techni-

although

the

expect,

and

occur.

/broaden

out.

Specifically,

•'

This

j',.

is, not

.*f • •

am offer

.•■'

• j

anticipate a Gross National Prod¬
uct of slightly over $450 billion in
the fourth quarter of 1958, about
$470 billion by the second quarter
'/of 1959, and about $480 billion

P> long as our business assumpi
t
;

a' satisfactory

covery is likely to continue and

been

the

pattern

corporate

broaden

the

out,

stock

able

earn¬

begin to

■

common

recoveries,

realities

now

tipward trend in

prices

the rate of the past

see.

seems

five months).

to sell or a solicitation of an

offer to buy these securities.

$80,000,000

by yeaf-end. The Federal Reserve

the

fourth' quarter

1958,

The Pacific

arid

about 146 in the second quarter of
.1959. However, we do not believe

that

will

than

few

those

principally

reflected

the postwar rate.
t

;

Any business forecast that
increases

sumes.

levels

must

make

as-

1, 1990

'/
I

Price 102s/s% and accrued interest

record

new

some

Due November

Dated November 1, 1958

Gross National Product, will con.tinue to advance but at less than

Telephone and Telegraph Company

Thirty-Two Year 4Y%% Debentures

points higher by the last quarter
of
next
year.
We believe that /
finished goods prices, which are

assump¬

tions about monetary policy. It is
'popular
to
criticize
past
and
present actions of the Federal Re¬
serve Board and to Explain how'

'they will either
short

recovery

adequate to
'inflation'.
are

cut the business

will

these

possible, we' believe

able forecast must

Federal
course

Reserve

in-

The

with ruri-away

cope

Although

assume

prob-

Prospectus, may be obtained
any State in which this announcement is circulatedfrom only suck
in
of the undersigned and other dealers as may lawfully offer these securities in such State.

that the

„steer

will

/■

events :

between these two alterha-

HALSEY, STUART A CO. INC.

•

tives. Although interest rates have :

fluctuated sharply in

the past two
years,-such fluctuations are un¬
usual only in the perspective of
the two decades before 1951. Prior

EQUITABLE SECURITIES CORPORATION

early 1930s, the free action
pf market forces resulted in in¬
terest rate changes and levels that
not unlike those

see

/
are

the

critical

HAYDEN, STONE A. CO.

SALOMON

LADENBURG, THALMANN & CO.

BACHE A.CO.

BROS. A.

HUTZLER

areas

R. S. DICKSON A. COMPANY

L. F. ROTHSCHILD A CO.

WERTHEIM

A, CO.

BAKER,

BLAIR & CO.

WEEKS & CO.

BURNS BROS. A. DENTON,

COFFIN & BURR
INCORPORATED

INCORPORATED

watch in the next year?

}

MERLE-SMITH

today.;

the pressures on rates
in the immediate future" still seem
What

Basically,
upward.

DICK

A CO.

INCORPORATED

•"

to the

are

A. G. BECKER

AND COMPANY

A. C; ALLYN

WILLIAM BLAIR & COMPANY

INCORPORATED

INC.

SHELBY CULLOM DAVIS A. CO.

GREGORY A, SONS

JCriticalf Areas to Watch
The
first
is
unemployment,
which, in spite of the recovery
in busirieSs,
has remained-/near
postwar peaks. Some observers
*An

the

6th

nomic

Awn

address
annual

Outlook,
Arbof,

Mr.

Mennis

conference

the

Eco¬

HIRSCH

NEW YORK HANSEATIC CORPORATION

before

University of Michigan,
' NW; 3,* 1953/

IRA HAUPT & CO.

November 19, 1958.

A. CO.

E. F. HUTTON A. COMPANY

WM. E. POLLOCK A CO., INC.

prob¬

(although not necessarily at

Board index of industrial productibH is expected tb avfefage 142 in

market

However;

;?WS suggest'that the current re-

the

The offering is made only by the Prospectus.

i.' •

*•

announcement

probably will

recovery,! may >

both

market, which hiscyclical

correction could

;

are

reviewed

all—

been

improvement in
ings

and

not continue; the rate of advance
V may be perceptibly slower in 1959,

broad

conceal

averages

overvalued and undervalued when

must inevitably tackle the

group
most

man-

Any.

answer

many

in the
addressing
a

anyone

field

IhinjfwmS re/istedTvm^ little weakness
f?»studies^ 1
they will be resisted by
that

stock

for

ment

likewise.

seen

future.

Finally,
but true, to say that
stock market, but a
near

and

there be

another

that

Market?

not be

years may

highs since.

increases.

therefore

postwar

again in the

new

cember

and

steel,

wage

know

investment

companies

must

has

industrial

stock market bottomed out in De¬

agement.

burden

Stock

the

was

market
About

could

applied to stocks in the immedi¬

1959.

What

place,
earnings

pace-

There is little doubt that the steel

continues, profit margins
should improve rapidly because
of the firmness in prices and the
rapid
improvement in
produc-

profits

first

the

on an analytic
appraisal
of their prospects. The stock mar¬
ket, then, may at times overvalue
temporarily the business improve¬

against substantial
The

rise

that

suggest
will reach

increase

corporate

is
steadily
increasing.'
Consequeritly, the earnings multipliers

sample, -the

gain
is
18%^
These
estimates are, of course, tentative
and
subject to constant review.
do

made.

the demand from all types of in¬
vestors for good quality securities

ex-

indicated

they

Trend

what about the stock market? The

industry,

tied to profit margins
earnings. As the business re¬

the

Market

several comments that

been

setting

covery

from

stock

has increased little; not'much new
common stock financing has been
done. in recent years.
However,

rapid

corporations, we have found that
capital spending plans are very

eluded

are

successful

rubber) are expected to have the
sharpest recovery./The 25% improvriment is., influenced strongly
by a substantial gain in the auto-

industry; if autos

earnings
significantly
originally anticipated. Moreover, the market supply of common stocks in the most

(autos, textiles, steels,
chemicals, metals, machinery and

mobile

the

rather

earnings realities.

Stock

better than

geheral, the industries hardest

However,

passed

previously expected. In our
field trips to many large industrial

in business since last
April is a cyclical recovery that
will continue through next year.
However, the rapid rate of reof this year

spending for plant and equip-

other

spending as well as
busmess spending. Because of delays in building up stocks of new
cars, I believe it will be Christ¬
consumer

had

broad strokes, we think that

summer

busi-

decline will end earlier than many

the recovery

coyery

area

lead to exuberance

The SEC survey of capital
spending plans made in Septem¬
ber gave us some hope that the

•

critical

could speed the recovery rate and

definitely

business

show
Those

will

occur.

changes the outlook. A forecast,
therefore, is vital and ever-chang¬
ing. Having thus established an
escape clause, I can now discuss
cur current
thinking on the most
course

second

ment,

formation

probable

not

enough. Each
day,
each
week, new in-

unemployment

lag

re¬

view

time

most

areas

func-

analyst

for

improvement.
seriously affected durT
-ing the recent contraction cut em¬
ployment,
including
overhead,
quite sharply. There is a certain
delay as volume picks up before
employment will regain previous
levels.
,......
'I .■

The

be made.

true, but I think

allow

significant

judgments can
second

seems

must

and the levels to which

may

hit in 1958

certainly

slow the rate of business
recovery,
and a figure substantially higher

increase

our

110

liminary appraisal. A figure simi¬

until we
again have full employment,
just a return to previous peaks
production and output.
This
complete

than

interest, suggests that their profits

will

the

Upward

large companies,
which have considerable investor

once

not

subsequent rise
correct, t but

was

prices has out-stripped the probable improvement in earnings, re¬
fleeting
inflationry
psychology

outlook for profits

done

you.

and

market
whether

Our

have commented that the recovery

his

The question is, not whether, the

par-.

production, thus delaying the rate of recovery.

The ^ primary
function of the
business
analyst
in
short-term

.»

activity,

measured by the index

of. industrial

fruitless to guess about the recep¬
tion
of
1959
models
until
the

common

upward trend probably will continue though not

sarily at the rate of the past five months. Based

the

critical

automobile
:

the present levels.

Philadelphia, Pa.

expect

the

spending

capital

return to

of
we

REYNOLDS A, CO.

The Commercial and Financial Chronicle

(2096)

and

analysts, these two
can
best be de¬
"flight of capital
away from debt instruments'and
into equities." The investing pub¬
lic apparently anticipates increas¬
ingly severe inflation and is de¬
sirous of placing money where it
is less apt to waste away.
servers

developments

Price Paid to Avoid Inflation

scribed

Costs less Than Foither Inflation
By JAMES F. OATES*

Life Assurance Society of the U.

President, The Equitable

New York City

bankers, insurance and
with windmills and concentrate
their attention—as do political leaders—on the political scene
where the malignancy of inflation originates. ^JWr. Oates asserts
that the fear of,severe inflation—barring V^r—is grot""'
and a 2% price rise—possible within the*"preierit
of fiscal responsibility and political-economic conditions—need
not be condoned or be permitted to continue.
To accept its
inevitableness, he says, is to abdicate our will to control. Asks
that we correlate Federal spending with receipts, and submits
avers

business heads

stop fencing

five

principles to guide

earning

today is the strongest
in the world and as the busi¬
ness upswing continues it will un¬
doubtedly become even stronger.
Its
strength

tial;

America

dant

natural

recast

our

are

and,
other

the

hand, from its
economic

and

political
t

sys-

which

e m s

based

are

ing

the dig¬
of
the

upon

nity

demand

ter

the

energy

F. Oates, Jr.

James

fos¬

and

personal initiative
which have been so

not

mutual

tremendous

this country for funds

homes, to build plant and
equipment, to bolster our military
defenses and to help finance the

and
suc-

hospitals,

schools,

other needs that

cessfull, over the years, in devel¬
oping the capacity to satisfy our

wants and desires.

this

very

law, .economic
stimulated

and

inspired the
American people to seek out and
utilize

the

full

vast

our

and

well-being

banks

the

ings,
the
$2,500,000
one
floor
building contains an air condition¬
ing system designed both for the
comfort of 800 employees and the
elimination of dust and moisture
from

where virtually
precision is required.

ab¬

areas

solute

Consolidated

The

American

for

along

the

east

coast

South America. The

about 125 workers in the
plant which is scheduled for
completion in March 1959.
new

The

applicable to the missile field. The

We in the mutual

savings banks,
the
life
insurance
companies,
and other thrift institutions

sales-service structure of the

and

stake

great

ascer¬

taining, analyzing and interpret¬
ing the facts bearing on inflation;
we have a
great responsibility to
our depositors, to our policyhold¬
and to

ers

the

have

and anlyze these facts
general public; and we
great
opportunity and

present
for

nation at large

the

challenge to assume the leader¬
ship
in
proceeding
vigorously,
first,
towards
removing
infla¬
tionary pressures if they exist in
real measure and, secondly, to¬
ward demonstrating to the people,
as

whole, that their fears of in¬
continuing inflation

evitable and

foundation.

without good

are

pany

New

action in implementing anti-

Your

Brazil.

now

work

-•

in production with an initial
force
of
400;, employees.

Production

at the 105,000 square
plant will include several
types of glass containers for use
in
food,
beverage,
drug,
and
foot

cosmetic

packaging. The plant is
Knox
facility in New

The

other

and

significant addition to
making
enterprise system

toward the free

general welfare of our econ¬

and

■
■"
pository of accumulated savings. omy. ■
Consequently,
additional
roles
It is suggested that the price
were
thrust
upon
them. They rises in recent years have been
have become guardians and safeboth misunderstood and exagger¬
keepers of the funds placed in ated. Let us look for a moment
their
trust.
They have become at the Consumer Price Index—the
portfolio managers seeking the most comprehensive measure of
.

;

poration

that

tion,

chases

Britain

50%

has

Cor¬

has

an¬

acquired

of the outstanding

Savage Arms Corpora¬
result

recent

pur¬

Savage Stock for cash,

American

Hardware

now

owns

385,852 shares of the 766,834 out¬
standing shares of Savage.
*

Arnold

Bakers,

plans to

move

Incorporated

from Port Chester,

NeW York to Greenwich where it

will build

$2 million plant. The

will

enable

the

firm

consolidate virtually all of its ac¬
tivities. Arnold currently employs
500

some

people.
*

The

Com¬

located

i Haven

New

/•

minority interest in
Flugzeugban,
a
West

Weser

German

aircraft

manufacturer,

has been acquired by United Air¬
craft Corporation of East Hart¬
ford.

Weser,

among the four larg¬

German

est

plane
and

makers, will
helicopters

sell

United's

Sikorsky

division.

The agreement with the
Bremen based firm is the second
reached

this year by United Air¬
a former World War II

craft with
foe.

April UAC agreed to let
Heavy Industries
of
Tokyo, Japan build and sell its
Sikorsky S-55 under a royalty
Mitsubishi

agreement.

William J. Sloan With
Frank B. Bafeman, Ltd.
PALM BEACH, Fla.—Frank B.
Bateman, Ltd., 243 South County
Road,
National Distributors
of

Florida

Growth

Fund, announced
has joined
organization.
Mr. Sloan was formerly Presi¬
William J.

Sloan

their

Bicknell

Connecticut

if,

43%

that

Macalaster

pany

designed

Hardware

of New

nounced

American

excess

first

manufacture

inflationary measures will be an¬

of our society

com¬

now has offices in Florida,
York, Massachusetts, Panama

move

facts

mutual savings
a
large re¬

$4 million plant of
Knox Glass, Inc. in Dariielson is
new

into

and

firm, founded

earlier this year, represents manu¬
facturers of special machine tools

Responsibility and
Leadership

your

become

foot plant in Windsor
expects to em¬

firm

ploy

the

and

years

have

plants for
the production of precision bear¬

The

England.

the contributions you are

Over

combination of
philosophy
and

freedom of individual action that

has

the

modern

square

Locks.

lord has expanded its organization

and

individual welfare

most

22,000

Machinery Company of East Hart-

era

new

important

large.

our

not

leadership in getting the
across
to the
people and

highways

are

accordingly,

thinking

world's

have

growth

to build

individual
man

the

satisfy

led

employees of the
recently moved
new
plant
in
Dan bury. Described as one of the
firm's

into * the

and

Need

accumulating savings, and in
channeling these savings into the
various
productive pursuits that
have
operated so well to make
America strong and
healthy is,
«.nerefore, a most important role.
Savings banks, over a long pe¬
riod of time, have been both con¬
siderable and significant in help¬

re¬

are

Production

Borden Company

ponder more carefully the
ominous significance of these his¬
torical facts and relationships.

consequent¬

the

term

must

and

man-made

has

This

lows.

observe, after serious and de¬
liberate reflection, that either we
are
in a new era and ought to

savings banks in promoting thrift,

human,

sources

function

long

Governments

States

historic

com¬

historic

reputable financial newsletter

one

Praises Mutual Savings Banks
The

for

ly will be both irregular and
long sustained.

springs, on
the one hand,
from its abun¬

economic

otherwise

will not be sound and

ratios

prices

and

United
near

inflation movement.

power

stocks have reached

highs

national economic citizenship anti-

Price
mon

it is high time

Insurance head

Thursday, November 20,1958

...

has
expanded
its
facilities through purchase of an
adjacent building for an undis¬

dent and

director of Texas Fund

Management Co.; Vice-PresidentTreasurer

Fund

director

and

Texas

prior to that he
closed
amount.
The
addition, was associated with Smith, Barney
& Co., investment bankers, New
which provides
twice the floor
space formerly occupied
by the York, for 28 years.
company, will be used for stock¬
ing laboratory supplies and equip¬

God-given natural resources. In
so doing, we have developed our
man-made resources to the point
ment. The company manufactures
that today our technology and the maximum return on their invest¬
goods and services that indivi¬ special
glassware
for
experi¬
sheer volume of our uniformly ments consistent with the safety
duals buy. In the 1945-48 period, mental work.
high-quality capital plant and of their assets and within the associated primarily with the im¬
if '
"
£i
equipment is the envy of the en¬ limits of state laws and regula¬ mediate aftermath of
A new
war, and in
corporation known as
tire world.
tions.
They have added security
1950-52, a period that embraced a North American Plastics Indus¬
The growth in these assets over to business undertakings.
They
war, the Consumer Price Index tries, Inc. was organized recently
the years, both with respect to have developed a proud record of
rose
by 5% or better per year. in
Mystic.
The
company
does
numbers and quality, has been a service at the community level of
Since 1952, however, and despite custom
moulding, hand-lay up
prime factor in the long sustained economic growth.
a substantial price increase in the
and vacuum forming of fiberglass,
rise in our living standards. With
The jife v-insuranee _coi
jthe price rise has reinforced plastics and urethane

lnc„

and

David Bmiim Joins

current expenditures for pufe-re*'
search and product improvement
and

development

and

with

the upgrade

ani^

•'

promote individual self-reliance
through savings. We too are a
mighty repository of accumulated
savings and a huge reservoir of

IV2 % per year.

The price rise in the immediate

Only by the
transfer of funds from those who
have saved to those whose spend¬
ing needs

sible citizen to

emphasis on
modernization of plant and equip¬
ment, there is every evidence that
our ability to increase the
living
standards

America

will

con¬

tinue
to rise.
As
the
recovery
from the late and unlamented re¬
cession continues
will diminish and
once

excess
we

capacity

will be faced

with pressing demands

more,

for capital funds.

Such funds
three

can

obtained

by borrowing the
savings of individuals and corpo¬
ways:

rations,

by borrowing from the
commercial banking system or by
using money printed on govern¬
ment presses. The latter two
pro¬
cedures

are

asmuch

money

the least desirable in¬
the creation of new

credit

increases

the

money supply and concomitant in¬

flationary

can

pressures.

are

needed

without

bias to
The

recognizably sound,
capital

imparting

supplied

inflationary

our

free

enter¬

prise* system depends upon con-"
tinuing growth while at the same
time
maintaining a reasonably
stable price level.
The mainte¬
nance of price
stability is essen¬
*An

Group

address

Five

by Mr. Oates before the
Savings Banks Association

of the State of New York,

Y„ Oct. 28,

19S8.

sures

that

are

every

remove

Brooklyn,

respon¬
the pres¬

bringing it about;

if inflation is not inevitable then
we

our economy.

success

and

Street,

members

Company,
15
York City,

New

of the New York Stock

Exchange, have announced that
David
Bunim,
formerly
VicePresident of Schenley Industries,
Inc., is now associated with them.

postwar period, 1945-1948, is, of
course, explainable largely by the
fact that the huge reserve of buy¬
investment funds.
And we too
ing power built up during the war
channel savings, in a non-infla¬
by business, banks and consumers,
tionary way, into segments of our
was unleashed during a competi¬
economy whose capital require¬
tive scramble to acquire the still
ments are most urgent.
limited quantity of available civil¬
ian goods. This great demand for
Ubiquitous Threat of* Inflation
goods was itensified by the enor¬
The importance of our enter¬
mous pent-up desires of the public
prises (mutual savings banks, life —desires which were denied dur¬
insurance companies, and other
ing three and one-half years of
thrift
institutions) in providing war and the initial years of peace
capital funds in a non-inflation¬
following the war. The price rise
ary
way
cannot be overstated. in the 1950-1952
period is similar¬
The public's concern with infla¬
ly attributable first to the buying
tion is one of the basic character¬
spree at the start of the Korean
istics of our times and the ubiqui¬
War
induced
by
memories
of
tous threat of inflation constitutes
shortages and second to the sub¬
one of our most
threatening prob¬ sequent large-scale increase in
lems.
military spending.
If
inflation
seems
inevitable,
The only other postwar period
then prompt and vigorous action
in which prices rose sharply was
must be taken

increased

Burnham
Broad

must convince the

its

fears

and

groundless.

public that
apprehensions are

—

Obviously, a good many people,
today, have concluded that infla¬
tion

inevitable.

This

the

prime explanation for the recent
drop
in
government
security
prices and the new record high
levels in stock market prices.
cording to most informed

1955-1958 when

Index registered

year

increase.
fantastic

spending

housing

1955

boom

per

and

ties

accounts, has facili¬

handle

phototype,
production

well as full
run quantities.

was

scale

on a

two story

Connecticut Hard

Co. plant in New Haven.
addition is the third in the

past two
an

years

extra

and will provide

10,000

production

square

feet

The company
produces silicone rubber coated
fabrics, aircraft parts and silicone
rubber parts.
1
space.

Hi-G
turer of

plans

Incorporated,

the

Partner

York

New

i •:

members

new

!
wel¬

were

organization
Harold

The inductees

were:

Anton A.

Fensel, Lane W. Fizzell, Francis
X. Prior, Christopher J. Schoen,
Samuel Swackhamer and James J.

Tigue.

Joins

previously scheduled $5 bil¬
lion 1 tax cut and by an unprece¬
dented
expansion
in
consumer

high
and

1956

and

1957

record

investments' in new plant
equipment were incurred as

manufacturers

strove

increase

Continued

page

;
i "

Westheimer Staff

(Special to The Financial Ch30nicle)

CINCINNATI, Ohio—Martin C.
now

affiliated with West¬

heimer & Co., 322-326 Walnut St.,
members of the New York and

Cincinnati Stock Exchanges.

CHAS.W. SCRANTONfcCO.
Members New York Stock

Exchange

•r

New Haven

credit.

Good-

body, bringing the club's roster to
55.

Petri is

manufac¬

precision electrical relays,
construct a one story

dinner

Six

Senior

Rubber
The

nual

Athletic Club.
comed

started

addition to the

and

runs

Work

short

auto¬

Ac¬
ob¬

The Quarter Century Club of
Goodbody & Co. held its 10th an¬

of commercial

had

consumer

mobiles that was financed in part

Goodbody */4 Century Club

which has done work for govern¬
ment agencies and a wide variety

the Consumer

Price

the

and Shppiies machine tool
guards and enclosures. The firm,

loams

New York—REctor 2-9377

Hartford—-JAekson

75669

Teletype NH 194

Volume

Number 5796

188

The Commercial and Financial Chronicle

(2097)
the

Banks Must Face

ground

floor,

where

venience of access is

Competition

serve

individuals;

floors

con¬

greatest, we
the upper

render service to

N. Y. C.

Bankers no longer can independently sit back and ignore
increasingly important business of marketing services related
to money and credit. In making this point, Mr. Warner con¬

confined to the traditional

total demand

area

loss of business.

behind in the

To
for

the

of advertising..

■

with

■

banks, and the people who run
them, have the power to grant or

lary of many bankers. That word
is "marketing." And it may well

withhold

inevitably

has

created

concepts

a feeling—one might even
"complex"—of power. One
of the by-products of this "power
complex" has been, traditionally
at least, an attitude of independ¬
ence
on
the part of bankers, a
feeling that "the bank is here, let
the public"come to us if they need

which

have

what

been

long

thinking

that

be
new

the

say

concept

expressed by
this
word
will

displace

the traditional

known
"new

the

busi¬

made

banks

good

the only impor¬
intermediaries, but

ness,"

time has marched

ness

ated

"busi¬
developt," o r

"business prot i o n." Of

position

our

course, in any

Bradford A.Warner
t a

„•

-i

compel

services if

our

m o

and has cre¬

expanding

competi¬

conditions

new

tion which

to "market"

would maintain

and

with the

grow

economy.

■

Sounds

Warning"

'■:}! Although..} analogiest are
bankers

and

have

en¬

deavored, in varying degrees, to
solicit

accounts

which

otherwise

might have gone to another bank.
This process naturally will con¬
tinue, but it is only a part of the
new and broader concept which is
coming to be known as "market¬
ing."
In

order

stand

that

may

under¬

the

subject more clearly,
arrive at a more
conception of marketing.

inaccurate
tions

/oftepi

two situa¬

nevertheless be well to
parallel between the situ¬

might
a

ation

quite the same, it

ever

are

draw

because

bankers to¬

commercial

day and that of the railroads not
so
many years ago.
Most of us
can remember when the railroads
had

monopoly in the transpor¬
and property. If

tation of persons

wanted to travel or ship goods
had to use

you

let's first try to

from here to there you

accurate

market, in the narrow sense of
the word, is a place where things
bought

sold.

the
of
people — a segment of the total
public, if you please^—who wish
to buy what someone has to sell,
or
would wish to buy it if they
knew about it.
Next, we might
ask
the
Question, "What is a
Bank? It may sound a little silly
to ask such a question, but some¬
times it is a bit tricky to try to
define familiar things.
are

broader

and

sense

group

A technical definition of

bank

might be an organization engaged
in the buying, selling, exchang¬
ing, transferring, and sometimes
issuing, money and credit, but for
our purposes
let's adopt a more
simple definition and say that a
bank

financial

intermedi¬

ary.". In other words, a bank is
intermediary between those

who have money

and credit in ex¬
cess of their immediate needs, and
those who require it.
The nonborrowing depositor has tempo¬
rarily unneeded funds which the
bank, as his intermediary, lends
to a borrower,
directly through
loans or indirectly through the
purchase
of bonds.
In
recent
years banks have become increas¬
ingly important as Tenderers of
services

money

and

credit, and it is in this field that
task of marketing may in¬
in even greater measure
than in the traditional area of ac¬
the

crease

cepting

deposits

and

making

loans.

Attracung the Individual .
jP,^'.'.^1Sg®st market—ihBusinessmen

balances; individuals

and this calls for

miscellany

farm

public
our

size

and

location

education.

000
onds

balances
So

than

the

smaller

hour"

dividuals is likely to be.
It is

safe statement that every

business

bank,

organization
might
enterprises

needs

credit

well

not

consists

are

banks

are

other

railroad—unless you

tunate

enough

for¬
along a

were

live

known

that

traffic to
self.

railroad

reduced

this

say

ran

prove

offering such types of
as

busineS L

work

ed them as

can

as
on

well

them,

problems
solve

possibly

you

find
are;

theip.

out

and

what

then

serve

the individual of small

call means—and at

can;

their

itself

—

has

very

been

This is not

order.

A+

tal*

money
It is evident that the fees

°L

tomem

will endeavor
The

fact

that

♦From a talk by Mr. Warner
before
the Kentucky Bankers Association, Louis¬

ville, Ky., Oct. 21, 1958.

the

Continued

only by the Prospectus.

and

900,000 Common Stock Purchase Warrants

Each Unit consists of One Share of Common Stock and Two Common

exercisable at $3.25

per

share and One Warrant ex¬

pires thirty months from the date hereof, exercisable at

$3.50

Price

$3.00 Per Unit

having grasped the

somewhat startling fact that com¬
banks

have

business,

Copies of the Prospectus may be obtained from

been falling

behind in the race for the

•

the

public's

any

the undersigned

State in which the undersigned may legally offer these

Securities in

compliance with the securities laws of such State.

question

Charles Plohn & Co.

What Banks Can Market

Members
f-.l!

,NeW York Stock Exchange

American Stock Exchange

Broadly and generally, what we
have to sell is service to business
and

service

might
located

individuals.

conceive of
store

department
in

per

However, a good

part was due to aggressive nonbank competitors who took busi¬
ness away from us.

financial

eighteen months from

Stock Purchase Warrants. One Warrant expires
the date hereof,

bank as a
of
finance,

office building.

November 20, 1958

uer-

and

city
to

DanKS> D«t " aoesn t apply to a

(10? Par Value)

system declined from
56% in 1900 to 44% in 1929 and
31% in 1956. A part of this de¬
cline, of course, was due to the
growth of institutions like insur¬
ance
companies — which serve
fields which we cannot, or do not

/ark?ts
nSfulation

fs 111 "right for big
blaa" dllsn't aoDlv

450,000 Shares Common Stock

ness,

demonstrate.

-n-

about

450,000 Units

marketing

in!

„

?aL

Bowling Corporation of America

marketing comes in. First, let us
review what we have to market.

o^-abarter

financial

mercial

their

maJket

+1<

so-called

offer of these Securities for sale. The offer is made

But

why the traditional banker saw
need of marketing in his busi¬

nevertheless,

ib£

NEW ISSUE

chairman, research has disclosed
that the share of total assets of
commercial banks in our entire

once

studied

the entire population,

little cost to
the

to "Register Check" personal

try

Parenthetically,

Associa¬
tion of Reserve City Bankers, of
which I have the honor to be

After

Citv

1VThatSwas^e-

hadn't

Sd^ctS-4neSence
^:^yeailneiS

immediately arises, "What can be
done
about it?" This is where

and
indeed, many non¬
competitive bankers still see no
need of it.
But it is important

they

cause

charged by. post offices on money
agree with the findings
of the orders were much higher than the
Katonah
Survey
that
bankers banks' cost of issuing them, thus
should always make appointments creating a "market" for this serv-

If is not difficult to understand

losses

bailment

tions Commission of the

enter.

YhllZ

mms
^fear^f

in handling small checkaccounts, and, therefore, the

bank

sub-committee of the Public Rela¬

wish to,

York

on an ■ average business day.

.tisiLusi."ass

in that direc¬

or the

these

b°W makes over 600 of these loans

^ Sf

to reverse it.

the

New

^ S» 5

tion, and it could happen in the
future unless something is done

and

to go mto direct installment lend-

littiA

share of

yet.

banks

the trend is running

rates,

passenger

analogy

commercial

the

'wholesale"

n„n

bother,with'them,
These services are contingent,:, of
over
Bilt this myth has long since been
shows'that thb
course, .upon the carrying of /com¬
exploded; v. Small depositors, ^
r« on these Ibans
pensating-balances. So, to -sum¬
need checking accounts, and they
than
of one
marize,
I
might
say
that
to
will pay adequate service charges
cultivate
percent
And the
for
your
market
among
if they are properly informed.
business
organizations, the best
loans, as measured by
Another example of how banks recent
surveys, is at least 60% of
course is to know your principals

frightening, let me hasten to
that this hasn't happened to

bit

^ now well known that it
took the banks many years to dispover that the field of personal
and automobile installment loans
S?s one
their best "markets."
fhe traditional practice was to
lend money to finance companies

family with
annual
income

shadow of its former

Lest

Consumer'

ways,

services to commercial business

heavy freight,

have

market and de-

satisfactory profit

fn-the
grout!

reconciling payroll account state¬
ments and paying freight bills. ing

and airplanes,
buses, and the private automobile
the

bank

banks

navigable waterway and could use
a steamboat.
But look at the sit¬
uation now. Trucks and pipelines
have taken over a major

cent,

one

past eight
«prime
rate"
rlceived bv the
!!vear ami mmvard banks< A few banks still do this,
^sUmated at 24^nil but even the conservative British
comDaTed ^h onlv 12 Sill banks< finally decided last month

say

dwell upon

there

new

to itself.

over
$4,000
in
it here, but needs a bank, and even less
argusuch as mont that tho hanWneert thi»iri
arranging introductions or giving customers
other special services. Large city

will

gross

individuals uT^lument^ho^we^16^
taxes" is'$4000 a'llTIV higher "^il" rates, which were Smt
and this portion bf the pubu/has
^ "IsTkh ^s * the" soZalfe]
doubled in size in the

market

that all
$4 000
business
comprise a
is now
"market." The fact that getting
Hon
business from corporations is often lion' in iQfift
Thpro
tied
up
with the extension of
argument that the
one

than

example of how

veloped it at

•

thnruh

discovered

indi-

rniA

is less

cost

This is

It's a big one, and growing all ,the time. Market research

ones.

might draw the corollary,
the smaller the bank, the more
important its business with in¬

additional

As it takes x>nly 13 secclerical time to issue a

one

year

income.

Just

market among

centages of business accounts and higher income brackets:

year

an average of 8,000 per
business day, which means $300,-

them,
well-organized

this

and

orders,

dividuals.

banks shouldn't

petition,

when

sense

were

financial

tant

sort

That

have."

the

expectations,

/our bank will sell approximately
/ two million Register Check money

inrti virtual

half of our families, believe it or
banks, the general rule being that not, have no
savings accounts, and
larger banks have bigger per¬ some of these families are in the

Within the last year or so a new
word has come into the vocabu¬

credit

such

The demand has far exceeded

our

operators, nonprofit organizations, indicates that
nearly : half
the
trust
departments, etc.)
These families in the United States do
percentages
vary
considerably not have choking accounts. About

public's financial business, the
banker offers suggestions on cultivating business and indi¬
vidual business, and directs attention to the importance
race

commercial banks' falling

overcome

all
as

carry 78%
of the accounts, but
plan of
only 30% of the total balances/ what is
(The remaining 10 to 12% is made viduals?

accepting deposits and making loans would be pursuing the
analogous situation now confronting the railroads with respect
to

ice.

generally
whole, pur
d e m and
deposit
Pre *y good
*dea| as to"
(checking account) business what the major / services of banks
breaks up about like this: Business
are
and to sell them, personal
organizations carry 10% of our contact is
usually sufficient. But'
number
of
accounts, but these many individuals simply do not
accounts
comprise 60% of our knovv what banks can do for

By BRADFORD A. WARNER*

tends that bankers still

customers, and not just
without previous notice,

Attracting thp

busi¬

ness
organizations.
Taking
American commercial banks

Vice-President, Manufacturers Trust Company,

with their

barge

BROAD STREET, NEW YORK, N. Y,

share.

on page

The Commercial and Financial Chronicle

(2098)

economists and

Our Unsound Monetary System
And Measures for Reform

fractional

banking system and that

ad/ocates

making such money non-convertible, permitting
all exchange rates to fluctuate freely, and overhauling our
can

public

Paul

Commercial

President

Company,

spoke

International
Conference
San.
on

revenue.

1 y

before

the

Consumer

r e

j§§H

19,
tyfavZ-

e a

1 i

and

The

ruin

In
all

fear

one

alike

which

of
the-

accompanies,

sometimes

banking.

pro¬

Only

the

depositors

entries

existence?" you

Our

banks

have

they maintain

cash

"fractional

name

These

two

men

tablGrfacts that

stated

are

all

and trust in

Hence,

tem.

untrustworthy

Consider these facts:

end

billion.

imaginary
for

deposits

goods

and

marked

who have

knowledge of business;

cycle

theory.
It is only the in¬
scramble of
of those facts that
Robert de Fremery 1 terpretation
bank
deposi¬
leads to controversy among econ¬
tors to with¬
omists. One group claims tnat our
draw funds;
restricted" deposits;'
banking system is basically sound
restricted credit; forced
liquida¬ and that
panics are either due to
tion
of
bank
loans; and forced causes
originating
outside
the
liquidation of commodities."
system or to abuses of that sys¬

assume

Can

How

$218

less

able

less

liquid, f.e.f

of the- Federal

Deposit Insurance
their depositors; Corporation, December, 1956.)

pay

called

can

staffs—help but lose confi¬

dence

the

blame these

future?
for

men

curtailment

capital

curtailment

taking place since

capital

expenditures, a liquidation pi' in¬
ventories, and a reduction of in¬
debtedness to the banking system.
These very actions, of course, has¬

47th

Annual Convention Issue

tened
But

the

1,352

-iiii

Investment Bankers Association
J

were

later

banks

f pa red.

was

certainly jus¬

events

suspended

hadn't foreseen this financial trou¬

wbb

Hoover's

were

lulled to sleep by

repeated

assertions

that

the

On Dec. 18, the

Hit

CHRONICLE will publish its allimportant Investment Bankers Association of
America Convention Issue. This
edition will com¬

prehensively

Addresses, - Committee
Reports and related news developments of the
Convention's
proceedings. It will also include a
multitude
course

candid

for
of

photos: taken

of the Convention.

Please rush your

'•!!

the

cover

during the

economist

for

advertising

space reservation

preferred position in this
outstanding issue
the CHRONICLE.
Closing date for copv is
-

one

our

largest

banks, .when confronted
with the foregoing explanation of
what

that'

confidence

causes

loss

the height of each
boom, attempted to disprove this
theory with the following argu¬
ment: The fact that our large cor¬
porations did not withdraw their

bank deposits when

Dec. 16.

Federal Reserve System was
panic proof, lost their businesses.
An

they first be¬

gan liquidating and curtailing op¬
eration? is clear evidence they did
not fear a collapse of the banking
system.
Had they feared spch a

collapse, he reasoned, the first
thing they would have done is

Regular Advertising Rates Will Prevail
For

Space in This Number.

The Commercial &
Financial Chronicle
25 Park

Place, New York 7, N. Y.

withdraw their deposits.
The

answer

this

that

for

dollar of bank deposits held
by these corporations, there were
hundreds of dollars in inventories
had

liquidated.

Their

primary concern, therefore, was to
liquidate their inventories before
trouble with the banks
If

they

draw

were

their

rash

bank

develpped.

first

deposits

with¬
when

the

and still is
Although they gave

taking place.

year

for believing we
nothing to worry about, all
their soothing arguments were ne¬
gated by the last two paragraphs
many
have

reasons

which read
"One

real

follows:

hazard

18 months? As the law

now

another

prevent

can

stands*
fi¬

nancial

panic.
We. are just as
to another financial debacle

prone

in 1929 when President
Hoover begged us not to lose
con-;
fidence in our banks.
We were,
as we were

that the

assured

System

Federal

Reserve

designed to prevent a
collapse of our banking system.
We learned otherwise. And today
we
are
being assured that the
was

F.D.I.C.

will

lapse such
1933.

for

But

prevent another

the

there

one

dollar

Federal budget.

Should this

controllable

inflationary

implications

domestic
be

era

scene

are

compounded

for

come

the
the

for

likely to
uncertainty

abroad

regarding the ability and

intent

the

maintain

chasing
the

United

the

long

States

international

of the dollar

power

Under such

run.

thing
insuring de-:

sound method of

this

,to

fiscal

basic

condi¬

emergen¬

avoided, the trend of re¬
years
indicates yet another
hazard

over

that the

the

rise

long term,
in

produc¬

tion costs in the United States
may

eventually
of

our

kets.

price

and

exports out of world

In the

more
mar-:

past, this prospect has

been obscured by the parallel and

generally

creation

principles..
lending of fic¬

and

not

sound

Some people believe it is against
the public interest to expose the

inherent weakness of

system.

think

our

banking

against the
public interest to keep people in
ignorance of such things. Large
financial

interests

been well

aware

our

survive.
and

still

is.

how

the

lave

of the

banking system.

weak

They

always'

defects in

They had toknow how?

unstable

the

system

Not

only do they know
protect themselves from

economic

fluctuations

caused

credit banking system but
many of them know how to profit
our

these

fluctuations.

Should

plain citizens be denied the

same

insight?

Reform

Telling:

ism is to let

Truth

our

citizens know the

truth.

They alone have the politi¬
cal strength to bring reform. Un¬
less

the

voters

cause

truth

they
ever-increasing gov¬

controls of

theatre.
.

unreliable

money.

accused, of
"Fire!"
in
a

But

and

can

shouting
.

the

system,

our economy
it continues to break down be¬

„

learn

financial

our

ernment

blaze

there is
that

has

course,

not

fire.

crowded

shouting
There

been

steadily
burning away the foundation of
our free enterprise system for 300
years. The spread of Communism,
which all thinking people rightly
fear,
has
been
fostered
very
largely by our failure to put out
this fire.
As
a
matter =*of fact,
Marx's
writings
received
their
first

prominence four

England

made

years

after

half-hearted at¬

tempt to correct the basic weak¬
ness

rapid progress of

inflation among other leading na¬
tions. However, various countries

the

The only hope of reforming this
basically unsound money mechan¬

about

are

namely,

that

system

unsound

titious
deposits is
method of banking.

seem

acute

banking

a
on

will sanction

ing propositions.
"Even

pur¬

in greater
likely under
present
circumstances, that the
outflow could be enhanced by
strong speculative movements, and
that the consequent inroads of the
gold reserve could assume disturb¬

cies

The

country

than

amounts

posits

operates

over

;

tions, it is not inconceivable that
foreign funds could be withdrawn
from

to face

the fact that there is no such

un¬

very

basis

coun¬

of large and
budget deficits,

try enter

col-;

had

sound

believing.

The time has

by
the

could develop from the side of the

cent

every

that

the

proved:

payments

in 1930, and 2,294 suspended pay¬
ments in 1931. Many of those who

ble

of America

thing that

the fears

tified—

of the

expendL

nothing

the

you

advise

Can

advising the

tures and the liquidation of inven¬
tories as has been done in the last

had

banks, the t<ess than $2 billion in assets, of
depos¬ which only $4,221,686 was in cash.
our banks;
(Statistics taken from the Report

means

and

cash

F.D.I.C.

the

;

T'./;.

these

their

About $120 billion of this
of
deposits that were

system—and

Financial

any man acquainted
facts—and our largest
corporations have such men op
with

try—much of it outside the bank¬
ing

proportions."

Prevent

Panic?.

consisted

to
and

"disturbing
We

sys¬

of imaginary

This

grows.

become

used

services

made this

And the migration of

balance of payments. So there
be much doubt that the
inroads on our gold reserve will

And in proportion as banks under
$10,000: and, therefore, in¬
exercise this privilege of creating sured
by the F.D.I.C. Now, con¬
deposits and leading them, and sider this: There was
only about
as checks are drawn
against these $30 billion in currency in the coun¬
pay

Sena¬

our

At the

over

has certainly

en¬

uncon¬

shouldn't

1956, the savings and de¬
deposits of banks associated

with the F.D.I.C. totaled

the

bank-,

Byrd

have

deficits"?

that is being invested in
foreign countries is certainly clear
evidence that we're
going to have
steadily increasing trouble with

mand

budget

capital

they

course,

upon to do/so,
Of course the Federal Reserve
large scald.;. The ra'ofe il¬
System has the power to increase
liquid the banking systefn
be¬ the a mountr of Federal
Reserve
comes—the mbre inevitable it is:
Notes:
But this power is limited
that
a
loss
of
confidence will
by the amount of gold reserves
occur.
When it finally oqcurrs itheld
by the system.
And gold,
takes either the form of a finan¬
being an international commodity,
cial
panic, 01*; a contraction
in1 has a
way of flowing out of the
business: resulting fropi ;the fear,
country just when it is most needed
*
A very similar statement' was
tem. The other group claims that that a panic or "predit crisis" m$y,
,/. in fact we have lost over $ll/2
made by J,? W. Gilbart—one
of, there is an inherent defect in our' occur, op a combination of both, billion of that metal*,since Jan. 1,
as
in thevperiOd 1929-33.
the leading banker? in England
* 1958. r
banking system that makes these
during the latter half of the i9th panics
/
The fact that the National Bank'
inevitable.
This
latter
Century: "It has been remarked group of economists has grown to Holiday didn't occur until 1933 has' Holds Gold Reserve Is Inadequate
that panics recur at regular inter¬
such an extent that when the late, led many people to believe that the;
Much nonsense has been written
vals of about ten years
each; nor Irving Fisher took a poll of the, Great Depression which vygs ,'h.er-;
about the adequacy of our gold
ran
this be wondered at,
seeing members of the American Eco¬ aided by the stock market crash reserve. But as a matter of cold
that the years
1825, 1837, 1847. nomic Association in 1947 to de¬ iii 1929 was not caused by the
fact, our gold reserve is hopelessly
1857, and 1866 have, from various termine how many of them fa¬ banking system. But as eaHy as
inadequate should any trouble de¬
'
auses, been marked by the catas¬ vored
reform
of
our
banking 1928 the financial advisers of pome
velop. In this connection it would
trophes so named.
Judging by system so as to remove the basic of our large corporations were be well
for us to heed the warn¬
this recurrence of disasters at an cause of
bank panics, over 1,100 getting increasingly unCasy about
ing contained in the June 27 bul¬
apparently fixed period, it is not of them signified their
the weak condition of our banks.
approval
letin issued by the Bankers Trust
Surprising that in tie popular —-many
of- them
well-known Faced, with the likelihood q| an¬ Co. This bulletin was devoted to
other financial crisis, the
only sen¬ an analysis of the gold outflow
sible thing for them to do was to that has been
„

tor

anybody's

of large and

era

es¬

the years."
*

whether

point clear.

ing."

its

indispu-

known

come

privilege

reserve

mind

of creating imagi¬
nary
deposits is sound.
The
F.D.I.C. is nothing but a gimmick
designed to bolster our confidence

certain mini¬

reserve.

inters

hardly

over

Is there any doubt in

re¬

of another, tered "an
had in 1933. trollable

could

deterioration

possibility
as

control

under

balance

(Italics added.)

that the process

creating such book entries and
lending them to the public so long

then deposited in otjier

of Banking," Vol. 2, P. 334.)

have

1933

payments

cape

is , the fact
that
the
basic weakness in our
banking system still exists.
Wc
still
operate on the assumption

mum

the

overlook,

ask.
the

total amount

(J. W. Gilbart, "The
Principles, and Practice

sys¬

wholesale bank failures. What

any¬

draw

can

History,

tory have been
money panics:
They were

Their

-small fraction

duces them."

)1 major de¬
pressions in
American his¬

unsound

point in particular to the
Deposit Insurance Cor¬
poration as a safeguard against

frac¬

is not there—nor is it

"How do the book

—

and

checks.

feature, indeed, they
the unreasoning

heralds,

system

nothing but book entries against

outside

causes

under

reserve

which

monetary

the

millions

dominant

accelerates

"Most of the

since

made

moved

their money, has an actual physi¬
existence.
All the rest of it

belief

this

banking hasten to assure
us today that things are different.
They claim that the banking re¬

cal

panics of the years specified, and
their
distinguishing -characters,
differ in some essential particu¬
are

train

world

lars.

statement:

tem

very

boom

their economies to the

of the

national payments. Should we fail
to cope with rising costs and prices
in the United States, our balance

Federal

cycle exists, fated to bring

its

it.

following
v

that
in

Credit

1954, he made
the

40th

seems

disciple

They

into

there

mind

ViceCredit

Francisco
J

Millians,

for

reason.

where.

prevent another

inven¬

Things Different. Today?

collapse such

money

order to achieve reform.
When

Are

Defenders

forms

tional

The author finds no evidence
financial panic resulting from the
"creation and lending of fictitious deposits," sees scant assur¬
ance in F.D.I.C., states our gold reserve is hopelessly inade¬
quate, and believes our people must first be told the truth in
system of raising

they

justified

issue money,

that

engage

panics.
"run on

withdraw, they may lose it alto¬
gether. And their fear is perfectly

the government the exclusive right to

giving to

bank

liquidate large

afraid that if they don't withdraw
the money they have a right to

propounded by the late Irving Fisher
save our free enterprise system, Mr. de Fremery also

tories produced at an inflated price
and wage level.

They are afraid
their money isn't there.
They're

100%
is impera¬

reserves——as

tive.

obvious

return to

bank,"

cause

men

and adjust

abroad has recently demonstrated
determination ta-bring The

their

great

It is difficult to understand why
main

inflationary

ability

;

•

Main Cause for Bank Panics

;

When

the precarious danger inherent in

have not removed

1930s
our

versities.

the

banking reforms of the

they first anticipated trouble with
the banks, they would have taken
losses because of their in¬

partments at their respective uni¬

anybody should be in doubt

By ROBERT de FREMERY
Vice-President, Onox, Inc., San Francisco, Calif.

California businessman contends the

heads of their de¬

Thursday, November 20, 1958

...

in her

banking system. Under

the Bank Act of 1844, banks gave
up

the

right to extend

credit

Volume

188

Number 5796

The Commercial and Financial Chronicle

(2099)

issuing notes that

ests will remain though possibly
shifted to other national jurisdic¬

could

credit

drawn.

Naturally

crises .continued

for

blame

cycle,

continuing
activity was
world

i& International

books

reflect

Issues

Monetary

all

gold
rates to

exchange

Now

time

that

reform

was

;

and

breakdown of trade—both national

complete the

started

suqh

And that is the basic premise be¬
hind Professor Fisher's
proposal
Which received the
support of so
many economists throughout our

country

system

reserve

100%

done

billions

banking into

converting

dollars

result

currencies

unstable

which, in turn,

were an

inevitable

currencies

having

sup¬

posedly convertible into gold on

demand

This

reserves.

consequences

political and economic devel¬

result

He
suggested
present system of

our

disastrous

had

opment of all countries is a direct

1947.

converting
fractional

the

has

international—that

and

1844.

when, in fact, that much

and

country.

sound monetary system
method of raising

The Federal Intermediate Credit
Banks
a,

exports

jWith Ball, Burge, Kraus

each

'
■

•

•.

.
.

Overhaul

Our

Reserve

•

•-

-v

Raising

System

closing, I would like to
out that banking
reform

alone

will

terprise

not

save

system.

our

free

also

New

And

CLEVELAND, Ohio—Donald E.

staff

has

been

Prescott

added

the

this

sound

take

basis

Haynes is

Exchanges.

Co.,

Third

Bank

have

bankers'

ilege
of
creating
imaginary deposits.

priv¬
further

any

Only the Government to Issue
'V.'.
-

Money

is needed in our
country, and we'll need more as
our population
expands; irshould
money

be the function of
government—
arid government alone—to
provide
the new money—not the function
of

private

provide

its.

banking system to
imaginary depos¬

with

Bankers should

lending

activities

confine

the

their

lending

of actual

savings placed with them

for that

purpose

and not subject
during the period
of the loan. They should no longer
to

withdrawal

allowed

lend

their

credit.

Having effected this reform, we
need then only
provide—by Con¬
stitutional

amendment

that

—

the

supply of money per capita exist¬
ing immediately after this reform
has
be

been

made

shall

maintained,

increase in
sitates
our

our

henceforth

When

further

population

neces¬

proportional increase

supply of

then

money,

Con¬

can authorize that increase
provided for in the amendment

gress
as

our Constitution.
In the words
of Alexander Del Mar—one of the
most scholarly and astute mone¬

tary

historians

"The

volume
the

lived:

ever

defined

money

are

each

State

equitable

exact the limits of the

law

that

will

the

become

its

operation

upon
prices and
the
dealings between man and man."
(The Science of Money, P. 129.)
.

Those

who

would

detailed
analysis
of
how
banking system can be put
sound

basis

acticle,

"Banking

Reforms

terprise,"
Financial

get

can

this

and

Preserve

our

Latin America is

which seldom

Monetary

Private

many

fields

Commercial

growing, and with them is emerging a stable

and

Chronicle, June 7, 1956,

prosperous

13).

middle class. With the population

growing at the fastest rate in the world, production
Favors

The

"What
new

Going Off Gold

question
about

money

often

gold?

raised:

into

Certainly not. The idea that our
money has to be convertible into
gold in order to maintain its value
superstition

the

foisted

interests

vested

upon

gold.

And there is

faster in 1957—

capita growth of 2.4%. Several Latin-

great strides in devel¬

growing understanding by both North

and South Americans of the

vested interest exists should heed

common

interest which

and to

private business in the United States. The 11

by the electric

com¬

panies associated with American & Foreign Power

Company represent

an area as

graphic characteristics,
for

industry and

diverse in its

resources,

and opportunities

commerce as any

in the world.

Already one of the largest investors of private capital
in Latin America, the American &
Foreign Power
System is demonstrating its confidence in Latin
million

The

Hemisphere.

problem of obtaining the vast

amounts

foreign capital required to

by currently investing nearly $100
annually in expansion and improvement of

its facilities.

meet the

1940:

"A second important reason why

gold is unlikely to lose its value is
that

not

only

the

tant

tries

national

would

asset.
not

' *

United

States,
well, have
large vested interests in gold. The
British Empire alone accounts for
nearly half the gold output of the
world, and in many other coun¬
tries gold production is an import
but other countries

These

look

with

"
:

favor

displacement of gold as
a
monetary metal; and even in the
event of political changes
resulting
from the war these vested inter-

opportunities for your business

in the countries served

coun¬

upon the

FOR MORE INFORMATION

„

by American

Foreign Power Co., write the Com¬

pany's Area Development Section.

100

CHURCH

ARGENTINA

ECUADOR

BRAZIL
>

STREET-NEW YORK 7, N. Y.

Associated electric companies in
CHILE

GUATEMALA

the following countries:

COLOMBIA

MEXICO

•

geo¬

America's future

domestic and

presents a constant dial-

Latin-American nations served

Western

;

area

lenge and opportunity to the people of Latin America

they have in the prosperity and security of the

the following statement made by
the National City Bank Bulletin

per

even

oping both heavy and light manufacturing industry.

And those who don't think such

for June,

with

American nations have taken

gold at the request of our citizens
and/or foreign bankers?"

Latin America increased

our

convertible

Would

growing needs of the
'

En¬
are

(The

making rapid strides in

gain the headlines. Consumer markets

with A. E. Aub &.

now

Fifth

imaginary

would

the

away

CINCINNATI, Ohio—Robert W.

members of
the New York and Midwest Stock

is free¬

' ''

(Special to The Financial Chronicle)

Co., National

City Bank Building,

free economy cannot

With A. E. Aub & Co.

deposits into actual deposits. And
to keep our
banking system on
to

nine-month

Proceeds from the financing will
he used to refund $148,000,000 of
2.45% debentures maturing Dec.
1, 1958.

Prescott Adds to Staff

Wagner

pana¬

both of them together

Our panacea

panacea.

Stock

(Special to The Financial Chronicle)

reforms must eventually be
made if freedom is to survive.
a

Midwest

complete overhaul of our system
of raising public revenue. Both of

Neither of these reforms is

and

approximately

these

cea—nor are

York

maturing Sept. 1, 1959. priced at
par, the new debentures are being
offered
through John T. Knox,
fiscal
agent,
and a
nationwide
selling group of securities dealers.

with

Exchanges.

en¬

need

connected

now

Ball, Burge & Kraus, Union Com¬
merce
Building, members of the

Before

point

offering today (Nov. 20)

issue

debentures dated Dec. 1, 1958 and

CLEVELAND, Ohio—Joseph K.

Crabbe

are

new

$113,500,000 of 3V2 %

(Special to The Financial Chronicle)

•

dom.

gold didn't exist.

our

sound

public revenue.

•

by C. R. Whittlesey). The periodic

llC Banks Place Debs.

expected to function properly

without

changes in the amount of

imports

this subject

allow

would be

itself.

can

the best

of world trade

fluctuate freely so as to correctly

Exactly the opposite is true, (One
of

and

foisted

the public is that an expand¬

bank¬

gradually shifted from the
ing system to the business

•;

superstition

-The greatest boon to the devel¬

ing foreign trade among freedomloving nations necessitates having
currencies convertible into gold.

1847,

the

business

Another

upon

1857, 1866—and in the meantime
full

to divorce all currencies from

<■

the

—

opment

tions." (p. 70.)

not backed

were

by gold.
But they retained the
right to extend credit by creating
deposits
against
which
checks

COSTA RICA

PANAMA

CUBA

VENEZUELA

;

Building.

The Commercial and

Financial Chronicle

.Thursday, November 20, 1958

(2100)

in another combination

might

Food and Agricultural Outlook

have induced far wider mar¬

THE MARKET... AND YOU
By WALLACE

than

action

ket

Economist, Swift & Company, Chicago, 111.

Motors Slow
The motor shares

Profit-taking picked
bit

week
age

this

momentum

despite the heavi¬
the hitherto popular

ness

the industrial aver¬ sections.

Rails

were

able

spot¬
continued to forge to new,
high levels with the light, the persistent gainer
and utilities indices in being Norfolk & Western, and
offer

candidate for the

record
rail

evidence of

new

model recep¬

that the motor

companies are
stride, and the
slowdown in the recovery of

that

dividends

fatter

face of all the fanfare attend¬
the start of the Jet

Age
transportation.
the
In fact, it spent some time re¬
cently as a persistent laggard
Split Disappointments
even though projections indi¬
Eastman Kodak where the
cate that this year's earnings
talk had ranged from 2-to-l will
compare favorably with
to
3-to-l
divisions
of
the those of last
year and the full
dashed to

help
selling.

was

spur some

obvious

ant

were

in commercial

casu¬

benefits

its

success

with

even

advance.

level measured
*

by the tradi¬

big hopeful was neglected American Tobacco.
American Telephone where
*
*
*
all sorts of expectations had
Although this issue has
centered and had been mostly
worked to its best standing in
responsible for lifting the is¬ some
time, it is still well un¬
sue to its best
posting in 28 der its record
peak. Its indi¬
years.
Yesterday only the cated
$5 payout still offers a
regular dividend was de¬ comfortable better than
5%
clared, but without unduly return
and is still covered by
depressing the stock.
anticipated earnings. In fact,

Temco

able to show

was

bit

including nudging
high. This issue is
highly regarded by some mar¬
ket spectators because of its
ability to show a modest in¬
to

action,

new

crease

the

for

net

three-quarters of the

growing diversity and its
estimate

that

three years

the

first

year,

its

own

it plans to do

much business

as
it did in the

with some of its brands start¬ last dozen years with impor¬
tant
help from its growing
ing to make a stir and the
electronics
prospect of higher earnings participation i n
conspicuous casualty after
next year, it is a candidate for and missile v/ork. It is not
shaving its " dividend since
a
a
plane firm, but
dividend improvement and actually
even
up to the time of the
is one of the quality issues, produces assemblies for the
meeting some of the services
other manufacturers, includ¬
were fairly confident that a consequently, that hasn't yet
trim might be avoided. Simi¬ reached overly
optimistic ing Boeing, Lockheed, Mc¬
Donnell, Bell, Raytheon,
levels.
larly, the $2 yearend extra
*
*
*
Aerojet-General and Fairpaid by du Pont last year was
child which gives it a broader
pared to $1.50, despite a good
Westinghouse i s another
base on which to hold sales
sprinkling of advices that quality issue that is still well
making it relatively
below its 1955 level, never high,
there was no
jeopardy, but
du

Pont

was

traders

had

rather

having recovered fully from

appar¬

a
Its

immune

sudden

contract

switches

by the military that
ently been skeptical and the
can
put a real dent in a single
stock was able to hold well in earnings only recently started
to show more valid compari¬ plane company.
the face of the action.
rather

From

point

less

And

was

but

when

it failed to bring out

volume

sessions had

considered
nical

stand¬

inevitable

overdue.

came,

much

technical

even

sons

reaction not only

advancing

Some

new

with

favorable' tech¬

'
K:

popularity also

strike.

periods
and there is still the intangi¬
Another
and
more
com¬
ble of how the
heavy equip¬ pletely electronic situation
ment slump will affect' next with its own group of follbwyear's profits. "In all, it has ers was Tung SoF which has
kept this stock restrained al- been showing steady progress
though it is a dominant factor over the years but is still
in

atomic

which,, again, is
called

implication.
*

•

exhaustive

believed to

the so- available at rather conserva¬
field, and is tive technical prices, includ-

energy,

romance

the

only im¬

profit-times-earnings

portant atomic energy "firm" ratio of less than 10 times, a
solidly in the black on this yield around 4M>%, etc. Part
line of work. The atomic work

agriculture have been
few

the

bright segments
this year.
This

economy

has been reflected in several ways:

tween

higher prices and
quantities marketed.
Since

have

greater

customarily

garded farm commodities

re¬

hav¬

Dividend Casualty

United Fruit

Food and
one

(1) Many communities in farm¬ ing approximately unit elasticity,
it seems a little surprising to find
ing areas scarcely knew there was
both quantities and prices rising
a
recession.
In fact, merchants
together in a period when con¬
often reported business was better
sumer income
has been approxi¬
than last year.
mately stable. But it would be a
(2) Food
prices
were
high¬
mistake to apply free market con¬
lighted in the cost of living, which
cepts uncritically to present day
continued to rise through the re¬
American agriculture. What hap¬
augur too well for American, cession until
July. Food was only
particularly if the Big Three catching up with other items and pened was that the price increases
took place primarily in the un¬
get back in stride with their even now stands lower than the controlled
products, such as live¬
total index in relation to the base
highly competitive ways. Sen¬
stock
and
fruits, while the in¬
timent wasn't overly favor¬ years 1947-49.
creased marketings took place in
(3) Personal consumption ex¬
the crops for which there are gov¬
able
toward
American, be¬ penditures on food
(including
ernment price supports. It should
cause
it was uncertain how alcoholic beverages} have risen in
be
noted
that
the
expression,
much
of its buoyancy was every quarter but one in the past "cash
receipts from marketings''
In the second quarter of
contributed by the large short year.
includes Commodity Credit Cor¬
1958 they were $78.6 billion on
interest, how the company the revised basis, or 4% higher poration purchases and loans; the
commodity actually may not have
will fare with the auto union than in the second quarter of 1957.
gotten any farther on its way to
(4) Food store sales dipped a market than a government ware¬
and how the Rambler will

tional barometers is the long- of

The other

somewhat lower farm prices in

the effect

says

back in boom

in advance of the the 707 jet plane won't be ap¬
directors'
dividend
meeting parent until next year when
when they did nothing more
the heavy wirteoffs of its de¬
compete in the overall market
than vote the same yearend
in the future.
velopment start to decrease.
extra that was paid last year.
*
*
*
The stock reacted
Persistent Selectivity
abruptly
Both Fcrd below 50 and
from posting a new peak and
Although the various in¬
Chrysler with a tag only sev¬
went in for some multi-point
dices would seem to indicate
eral points higher are gener¬
losses
that
trimmed
more
that the entire market is at
than a dozen points from the
ally regarded as far sounder
ultra-high levels, the fact, as operations with better profit
best price in short order.
many
commentators were
possibilities for the longer
*
'I't
commenting, is that less than pull than American Motors
On the other hand, some is¬ a
third
of
the Big Board
which had worked into the
sues
that did come through stocks are even as
high as mid-30's.
with
stock
splits failed to their peaks since 1955. An ex¬
show much life, the action ap¬
An Interesting Aircraft
ception that is still slow-mov¬
parently well discounted in ing and not at any excessive
In the low-priced aircrafts
alty

but

on consumer price index
probably will be "quite moderate" because of rising cost of
food processing and distribution.
Turning to the general
economic outlook, Mr, Arant guesses that the GNP will average
about $465 billion and foresees government spending staying
at a high level.

support a flat assertion

but moving more mod¬ aircrafts were able to stand steel operations would indi¬
estly and well short of any out in demand after a rather cate that the motor firms are
all-time peaks.
long hiatus. Hopes of a higher still
buying cautiously. Amer¬
dividend are involved in this
ican Motors, of course, has
situation.
There were also some frus¬
been having an excellent year
if
*
if
trations in the flow of busi¬
helped along by tax loss
In the plane group, Boeing credits which will be used up
ness news, notably a letdown
in steel operations, plus some was the restrained item in the this
year. And that doesn't
.

all major groups

gen¬

erally quiet and slow-moving.
There is still not enough solid
tion to

economist anticipates

Food

were

step

high hopes for stock splits and

By WILLARD D. ARANT*

Westinghouse.

STREETE

showed

for

has

of the lack of favor

currently

little in the fourth quarter of 1957

from their peak

very

in the third

little

There has been

well.

change since the first of 1958
seasonally adjusted basis.

reflected

been

in¬

farm

income

farm

Net

also

includes

payments such
participation in the
Federal spending for

direct government

for

those

Soil

Bank.

support of agricultural prices
and
incomes has been running

the

(5) Sustained food expenditures
have

house.

quar¬

in general have held

ter, but

Cash

annually and dur¬
fiscal year is esti¬
at about $5.5 billion.
This
addition
to the approxi¬

about $4 billion

receipts from farm
marketings during the three quar¬
ters of this year were up 11% over

mated

the like

period of 1957. Farmers'
production expenses continued to

mately $1 billion which the Fed¬

rise but by a smaller amount than

financing of farm ownership and

comes.

cash

receipts,

realized
three
up

that

income

net

quarters

first

year

this

about 19% from

It reached

farmers'
the

was

earlier.

a year

the

ing

1959

spends for the

Government

eral

operation,
rural
electrification
telephone,
conservation of

and

land

water resources, re¬
administration. Much of

and

spending is in the form of
third quarter, which was loans and there is, of course, some
highest since 1953.
(These eventual recovery.
figures represent the income of
Outlook of Abundance
:
farm operators from farming.
In
addition, farmers received several
The
agricultural outlook for
billion dollars from non-agricul¬ 1959
is one of abundance. Whether
tural sources.
When you divide
abundance is profitable for farm¬
the aggregate income by the de¬
ers or not varies by commodities.
clining number of farm operators, It depends on whether the com¬
you
find that income per farm modity is supported by the gov¬
or per capita reached a new peak
ernment and the nature of that
in 1958.
Nevertheless, this new support.
If a commodity is not
peak was
only slightly higher supported, it depends on the elas¬
than the peaks of 1951 and 1948,
ticity of demand.
and since those
years the
nonIn the case of cattle and sheep,
agricultural ponulation has ad¬ high prices and light marketings
vanced much more.)
during the past year were asso¬
ciated
with
improved
weather
Sources of Increased Farm
conditions in the Southwest. Bet¬
Income
ter weather means more produc¬
in

peak of $13.6 billion

this

the

What

has

increased
back

ketings,
been
*An

6th

the

been

source

income?

farm

cash

Going

receipts from

mar¬

find the increase has
almost equally be-

divided
address

larly
Both

Economic

is that the company so
to

dividend

declare
as

which has

far has

did

Ann

stock

last

year

helped to keep the

issue restrained. The decision

apparently was influenced by
a
poor first half.
But like
many other companies, Tung
Sol experienced an upturn in
the third quarter which, if it
continues
through the final
one, could make the earnings
comparison with last year far
more
pleasant.
[The
article
time

views
do

not

coincide

expressed

those

this

at any

with

"ChronicleThey
as

necessarily
those
are

the

actually

than there
otherwise would be. This particu¬

production

meat

the

Outlook,
University
of Michigan,
Arbor, Mich., Nov. 3, 1958.

failed

being rebuilt, there is

are

less

by Mr. Arant before the

conference

annual

course,
but production
time.
Meanwhile, as herds

tion,
takes

affects
cattle

cows

and

calves.

and

sheep

herds are

substantially this
year. The Department of Agricul¬
ture expects a continued increase
being

built

in herds in
in

1959 and little change

and prices.

marketings

After

1961—there will

that—in

1960

production of beef, lamb
and
perhaps
lower

and

veal,

prices.
In the

case

of hogs, an increase

20%

pig

crops

this

early winter is indicated
with smaller increases after that.

fall and

The

hog-corn ratio is

exception¬

Marketings will
year ago levels after the
first of the year and the Depart¬
ment of Agriculture predicts that
hog and pork prices will be ap¬
preciably lower. Since the demand
for
hogs is somewhat inelastic,
ally

favorable.

exceed

this

will tend to reduce farm

in¬

come.

There

will

little

change

presented

of the author only.]

Continued

page

Volume 188

Number

5796

The Commercial and Financial Chronicle

*2101)

countries

Dps and Downs

that

excluded,from, sake

are

and Common Market

other Western

better
close integration

smalLnumber of

coun¬

tries occupying a contiguous geo¬
graphical position than between 17

countries

By PAUL EINZIG

spread

the

over

British

economist

explains

motivating

factors

Optimists

underlying France's recent about-face regarding European Free
Trade Area; envisages retaliation by tbe governments of the
proposed Free Trade Area, and reports one view that believes
separate—though smaller—group trading areas would be more

;;

Market
the

can

-LONDON, Eng.—Ever since the in
over

the

Free

Trade

Area

were

some

two years

g r ee-

ment

been
to

Gen. de

At the

though

What

Named Assistant V.-P.
—

Robert L.

Boskey has been named Assistant
Vice-President and District Man¬
ager

of First Eastern Investment

Corporation, 157 Broad Street.
Jack Stephen Skakandy, Presi¬
dent of the firm, announced that

'Garvin,
Bantel
&
Co.,
120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬

change, announce that John J.
Kennedy has joined their firm as
General

Manager.

Phila.-Balt. Exch. Member
>'

Such

the European con¬
economic and po¬

Mr.

was

able
<

In any

the

and

change of regime took
only a few weeks earlier

the

industrialists had

op¬

portunity to establish connections
Dr.

Paul

Einzi*

with the

expected

was

to pro-

smoothly during the autumn,

It did not appear unreasonable to

that by the time

the Eu-

Common Market begins to
in January, 1959, a Free
Agreement would be

concluded.
now

place

Area

can

new

case

indus-

assume

Gaulle

VFrench Army in Algeria.

trialists, and

"■ f' '•

Kennedy Mgr. for
Garvin, Bantel & Co.

with impunity because
regime was based on the
.unconditional support of the

e n-

matter

his

rule the oppoFrench

much

dustrialists. In July

made up his
mind to over¬

v:.

restoration

some, commercial in¬

John

important,.
no
longer
politically to defy the in¬

afford

General

eral de Gaulle

Gaulle and the

.Industrialists

and

appeared

operate

increased

He is not in-

is able to appreciate their political
implications,

July last it

Trade

result of

the prospects

ago
'

they
look pretty
hopeless. In

ropean

terested in economic questions but

moment

ceed

equilibrium

initiated

subject

downs.

the

for

have

ups

sit i

France

British competition.

European

Frankish

towards

tinent.

pressures on

discussions^

old

while

MIAMI, Fla.—Joseph A. Rayvis,
President of Plymouth Bond and
Boskey, who was among the Share Corporation, Ainsley Build¬
litical unit with strong industrial firm's
original
sales force and. ing, has been elected a member of
resources and with highly
intel¬ promoted to the position of Assist¬ the Philadelphia-Baltimore Stock
ligent manpower would become a ant Sales Manager in December of Exchange. Mr. Rayvis is President
factor of first-rate importance in last year, will in his new capacity of Plymouth Fund, an open-end
world politics because it would go develop and manage
the firm's investment company and a direc¬
a
long way towards offsetting the sales force in Union, North Bergen tor of the Bank of Dade County,
Miami.
might of Soviet Russia.- For the and Hudson County.
way

longer differ with the French industrialists
France from other governments concerned.

the

worth

European countries

REDBANK, N. J.

regard

Charlemagne.-Should
this materialize it would go a long

offsetting the might of the U.S.S.R. than a large
all-encompassing Free Trade Area. Dr. Einzig notes General
de Gaulle

revival

Empire

effective in

despite

well

terests.;--;

conti¬

the Common
the first step towards

sacrifice

nent.

Well-known

attaining suchv results it

possibility of

would

between

the arrangement. There' is a

seems,

however, that the

men

the

regime.

new

Their political influence was at a
iow ebb.
In the meantime rela-

tions
and

between

the

General

Gaulle

Army leaders in Algiers

have become less cordial.

General

de Gaulle chose

to act indepenclently on more than one occasion
and presumably he intends to do
so
again should occasion arise,

This rr^eans that he can

no longer

depend unconditionally on the
support of the Army. It is expedi-^
Government has reverted to the e.nt t°r hun to strengthen his posiattitude it adopted prior to the tion by securing the support of:

optimism of four months ago was
entirely unwarranted. The French

advent of General de

looks

tween

most

now

Gaullerand
unlikely that; be-

anckthe end of the year

agreement could conceivably

any

be reached.

The

the all-powerful industrialists,
otherwise he would be at the:
morcy of the utterly undependable
political parties. /,
' • - •

difficulty is not v. De Gaulle could no longer afford
terms. French to antagonize the industrialists by
opposed to the disregarding their opposition-;to

disagreement

over

industrialists

are

idea

veiy

common

of supplementing the
market with a Free Trade

the Free Trade

Area.

seems,

therefore, most unlikely that beThey hawe thrown^tlieirehr-f; tween now and the end of * the
tife influence into the balance and year he will throw into the balAreaV

have succeeded: in

overmling the
Foreign Ministry which, is
a split in
Western Europe and a deterioration
of : France's
relation with

French

"vOry anxious to avoid

Britain.
•.v

j.)-..-.*:;r

•

""German; competition

much
dangerous for France than

British competition, and yet French

industry is prepared to accept the
Common, Market which; includes
Germany and:.is opposed to the
Free

Trade

Area

includes

which

ance his influence to ensure the
conclusion of an agreement. It is
necessary
therefore to envisage
the possibility of a breakdown of
negotiations in spite of pressure

^
-brought to bear on France by her
_" partners' im the Common Market

French-German Accommodations

[Britain.; The explanation

is that,
having accepted the Common Market, French industrialists are
strongly opposed to exposing their

well

by the Governments of

the proposed Free Trade Area.
\
; '

Retaliation
is

There
taliation

on:

much talk about rethe part of the latter

Governments, especially those of
Britain, the Scandinavian cduntries and Switzerland. There is a
strong feeling in these countries
that if in January next the Common Market countries should be-

products to British competition in gin to discriminate against their
addition to-German competition, goods they
should retaliate.
It
Moreover, they expect to be able seems, however, that so long as
.to. come to some arrangement -with discrimination is confined to hightheir German- opposite numbers, er tariffs there will be no retaliaA

large number of cartel arrange-

vments operate in both French and

industries

German

:vides

Common

the

this

pro-

Only if France, and possibly
other Common Market countries,
should differentiate between the

opportunity for coming
about dividing, up the

them,

between

other

European countries in respect
quantitative import restrictions.

ern

hand, it is inconceivable that such an arrangement

would

would be practicable between the

talk about the setting up of

countries

eluded

"Daddy, How Do I Look?"
Yesterday

was

first grown-up
The

things

when any

little girl is

a young

lady.

family needs don't always come easily. There

father

that, would

the

Free

in-

the

latter countries

to retaliation.

trading

area

resort

may

are

times

be pressed to provide them.

There is also much

a rival
between Britain, the

Trade

Arqa. Scandinavian countries, Switzerland and Austria. The importance
°f such an area would bear no
plained partly on economic comparison, however, with that of
grounds and partly on political the Common Market. In any case
grounds. In the. meantime reces- it would take a long time before

Those

are

the times when

and

dependable

and repayment

change in the attitude of
France
since July
may
be ex-

fears have increased consid-

such

complicated

arrangement

erably, and with it grew the desire could be completed,
to protect the domestic markets.
'There is a school of thought
General de Gaulle is
naturally which does not consider the setanxious to avoid losing, his popu- ting up of a Common Market as
larity
throughu contributing to- an unmitigated evil from the point
wards accentuating the recession of view of the Western European

Beneficial loan proves its value

...

meeting unexpected needs with a small loan service that is friendly, dignified

The

sion

dolls and pigtails and small scuffed shoes. Suddenly it's her

"party dress"—and

Common Market and other West-

Market

terms

and

tion.

...

and geared to family requirements both in amount

schedule.
...

•

BENEFICIAL loan is for a beneficial purpose.

T&uteftciai3inance
...

MORE THAN 1,100

./Beneficial Building. Wilmington, Del.

•

OFFICES IN THE UNITED STATES, CANADA, HAWAII AND

ALASKA

The Commercial and Financial Chronicle

Thursday, November 20, 1958

...

(2102) 1

Suggested New Way of
Financing the Public Debt

■

By JOHN E. ROVENSKY*

Former

sometimes

First Nat'l City Bank of New
Chairman of ACF Industries

The booms based
but

sound

grossly

sometimes on
pure mass psychology—were al¬
ways greatly applauded—and the
bust
just
as
loudly
deplored".
Everyone is elated at the party
the night before—but hates the
morning after. However, this is
facts;

exaggerated

Former Vice-President of the

wage-price spiral, but so long as
it. doesn't rob the .individual of
too large a percentage of ;
life's
savings; that is, if, forv instance,
prices go up only 1 or ?2% per
annum—we
can endure
it—par¬

number of booms and their con¬

comitant busts.

York

ticularly

Bonds" for those who are willing

sacrifice quantity for security.

This

Plan

issuance

being

new

negative

Ruml

Plan

market boom based on a

Many realize that

present stock prices are excessive
—but
what else
can j they
do?

you

bonds

the Treasury De¬
partment's appeal for suggestions
as to
new ways of financing
the

today

the

following

top"—usually due to the exigen¬
cies of government financing; ex¬
cessive monetary increases caused

unlimited is¬

entrepreneurs, bankers and busi¬
nessmen to
"Buy things', that is,

the

sue

of bonds—

purchaseable
at

par

flee

at any

from

money."

studied

typical case; the German, at first

bank, post of¬
fice, or Subtreasury. The

hand in 1922. The Germans

new.

are

be¬

see

cal

measure

can

Toward

1922.

the

relief at
mately adding
damage.
•
" :
rary

absolutely and literally un¬
obtainable in Germany—no one

were

kept

They

public

the

claim

but the tax exemp¬

isr true,

tion part

opinion compen¬

sates for the low rate. I have also

been

asked—why not

rate

and

let the

higher

pay a

interest be

sub¬

the
pay

portunity to the public of putting

faced

it.

ject

their

money into something they
subject to any
chiseling away which could
radi¬ be just as bad as the present in¬
\ flation.; -' •;':".?'";:v■

sounded

also

with

count on—not

can

later

—

Germany
end, loans

That

the "Pay as

meet

low.

too

has been accustomed to 2% or 3%.

tax. The primary object
of the plan is to present an op¬

radical situation and only a

buying

stocks

were

plan:
(A) Offer to
the public an

beg to submit

into

from the Mark" I saw in

terrifying problem of inflation. It
is
radically different from the
various types of former years. The
latter were always "fed from the

Public Debt, I

rush

too

principle,

by some of my

but

made

The usual measures
issuing
other avenue
open to them. They hope they are
government bonds at a sufficiently
attractive rate; hocus pocus via
"buying something tangible"—it's
the beginning of "the flight from
the Federal Reserve banks, etc.,
the dollar"—just like "the flight
can
ooviously give only tempo¬

Situation

before

have

and

thejr

cause

Present

In response to

the evils of

know

They

Go"

demerit

untried,

which

income taxes

our

factor—FEAR.

has. the

and

the first time we have had a stock

of 2% tax free income consols with
periodic and redemption adjustments for cost of living changes
is proposed by Mr. Rovensky as a multi-purpose measure to:
(1) solve the government's debt financing problems; (2) remove distorting factor of 'Tree money" from the stock market;
and (3) compel recognition of the folly of wage-price spiral.
The business leader expresses deep concern about the tragic
inroads and consequences of inflation, and fears "the flight
from the dollar" will commence unless we try to stop it with
"Stable Income and Principal Bonds."
Treasury

have ^"Income

I have been told

associates that the; interest rate is

the cost of ulti¬
to the permanent
~

The French Rente
successful

highly

was

instrument

French

finance—and only the fact that it
had

anti-inflation

provision

caused it to go into oblivion as the

shrank

Franc

dollar to

l/5th

from

1/400th.

the

mark overnight—he knew
buy less the next day.

it would

If the stock market were

re-

inflation, our;
problem would not be so serious.
However, I'm afraid it isn't. Our
depreciation rules and laws have
liable

refuge from

created
the

vitals

cancer

our

U. S. Government Bonds
By OSCAR GRUSS

that's eating outr

enterprises.

buys a hydraulic press'
$100M. Its life is 10 years and
at the end of that time, the com¬
company

Partner, Oscar Gruss & Son, New York City

Members New York Stock Exchange

for

Wall Street broker-dealer submits

proposal to restore confi¬

dence and stability in the government bond market. Mr. Grass
has $100M in the till from
depreciation.
However the new *
would: (1) permit specified governments to serve as collateral
first
issue
to
flation; business and professional press costs $250M. The earnings1
np to 75 to 80% of Federal Reserve loans at %% above
be issued Jan.
of those 10 years had been over-men were being wiped out. Labor
rediscount rate, but no higher than the coupon rate; (2) grant
1, 1959, and
There's
suffered
most
of
all
as
their stated by that amount.
John E. Rovensky
known as "The
wages trailed far in arrears. Alt nothing to do but dip into capital;
tax-exemption to the interest in the amount of the increase in
1959 Stable
heartily opposed it and in time or borrow the $150M. Most com¬
the rediscount rate; and (3) provide a sinking fond. He be¬
Income and Principal Bonds." All
the problem was solved — not, panies are taking the latter course
lieves this would help divorce government bond market from
bonds
purchased in January to
—and consoling themselves with
however, until it had wrecked the
receive
the
full year's coupon.
the thought "We'll pay that debt
monetary policy and avert depreciation of existing issues of
lives of thousands.
Bonds sold later in the year would
in depreciated dollars." But—who
governments when rediscount rate goes up.
Our situation is quite the re¬
be at face value plus interest on a
is going to furnish those "depre¬
.)
verse.
Wages started up—as they
ciated dollars"- if we don't stop
simple month by month basis or
Today's world is divided into
(2) Avoid depreciation of exist¬
normally should—during the war.
on a scale fixed in the offering.
this
infaltion and reach a real two systems, the capitalistic and
ing issues, due to advances
Due to the lack of vision of our
In each succeeding year a simi¬
in the rediscount rate, by
"flight from the dollar" as they the
communistic.
Unfortunately
labor
leaders—raises
in
wages
lar issue would go out—to be dis¬
had in Germany.
Obviously, the most countries in the capitalistic
granting tax exemption to
continue to
be
demanded even
tinguished by the issue year, that
government-—by some form-of sector, outside
.•
the interest in the amount
,.
y .
j
when it's quite evident that the
is, Issue of 1960, 1961, etc., and
printing press magic — inflation of the United "
; of the increase in the rate.
employer
can't
possibly
meet
would
be ; treated
in the same
further compounded.
*
■
States, are
For example, an issue of 3^4%
them
from < profits
and
conse¬
manner as the issue of 1959.
V
Since the government will be
long-term
bonds are marketed
quently they must be added to called to do the financing—it will capita lists
with
(B) The bonds to have ten cou¬ the
very
under a 1%% rediscount rate. The
price.
Doubtless in
many
be strongly argued, the govern¬
pons attached — the first payable cases we
little or no
rediscount rate is later raised to
have the same situation
ment must, to protect their inter¬
Jan. 1, 1960, next Jan. 1, 1961, etc.,
capital.
"
in labor as we have in politics—
2V4%. The bond would' then pay
that is, interest would be paid an¬
est, appoint the men to run the / The ■> United
a leader fears his rival might oust
2%% in taxable interest and %.%
nually. At the end of ten years, him and he therefore feels com¬ enterprises. Result—exit the poor, States, due to-'
in tax free interest. If the Treas¬
if
the
bonds
remained
unre¬
trusting shareholder and exit free
its
great
pelled to continue the path of in¬
ury finances later at a higher rate
enterprise.
Of course we shall wealth
deemed, a new set of coupons flation
of
of
just as our politicians feel
interest; the? tax exemption
never dare call the result Socialwould be issued to
the holder
capital, enjoys
feature
of
the
previous issues
they must out-promise their ad¬
ism-^-oh, no—expanding Democ¬
upon application to the Treasury.
the best housversaries.
would serve as a cushion against
They both go on the
The first coupon payable Jan. 1,
racy
or
some
other euphonious
ing in the principle "What shall it profit me
large scale selling and demoraliza¬
term will be coined.
But it will
1960, would be at the rate of 2%. if I save the
world, the
tion of the market in the out¬
economy, but lose
be "Collectivism" no matter how
The coupons for all subsequent
highest
my job?".
standing obligation.
you spell it.
years would have a blank space
Oscar Gruss
standard
of
Our sole hope is in awakening
These
bonds
would
offer
a
(3) Provide a constant sinking
into which the holder would in¬
living, the
;
the public and making them real¬
fund for
all medium and
haven of refuge for the man who
scribe the amount then payable
most
efficient telephone, public
ize the terrible dangers ahead—a
doesn't" want
to
long-term issues and the
speculate — he
as defined herein.
utility, railroad and airline sys-.
•'
'
very difficult thing to do in a
doesn't want to
operation
of : the
sinking
have any un¬
(C)
The bonds being income
country as lush as these great earned gains—aH he wants is hon¬ tems, etc. These have all been
fund may insure an orderly
bonds
would
have no
maturity U. S. A.
made possible by the abundance
where life is so easy and
market at all times.
'
esty. He wants to get a reasonable
but would be callable in any year
pleasant as compared with the return on what he put in and if of capital raised at reasonable
Double Edge Sword in High
at the pleasure of the government
rates in the money markets of this
rest of the world. Our situation is
he" needs the principal he can sell
Interest Rate
y-y
at the redemption rate herein de¬
very similar to
that of ancient the bond in the market for the country.
fined.
The high interest rate of gov¬
Rome
The
prosperous and powerful; value he really-put into it.
guarantee of the United
ernment bonds is a double edged
(D)f On or about Dec. 15, in weakening of the social structure
States government * has made it
This would take all the "fear
sword.
each year after the first, the Sec¬
-Vi.
—concluding with the conquest by money" out of the stock market possible to create billions of dollars
The difference between 2% in
retary of the Treasury would pub¬ vandals attracted by the richness
where it doesn't belong and hence to finance the needs of the Bank
lish his finding as to rate at which of the
average
which the government
spoils. However, we can't the stock market wouldn't be dis¬ for Co-ops, FHL, FHA, Federal
used to pay and 4%
the then payable coupon is to be expect
which the
politicians to do much un¬ torted by that factor.
Land
Banks,
Fannie Mae,
The
bonds are yielding
paid. This rate would be at the til they feel reasonably sure votes
International
Bank
and "many government
It would solve the government's
rate of 2% plus or minus the dif¬ will not be lost
row,
on
a
$230 million national
by their action.
problem as to financing the public others.
ference
between the
Bureau
of
debt, amounts to over $5 billion
In the meantime the fixed in¬
debt. There is no question in my
Every investment portfolio pre¬ *
Labor Statistics cost of living fig¬
i
s over 6%
of the national
come people
(thanks to scientific mind that billions, would come viously held a sizable percentage
ure
in
December,
1958
(which
budget
of $80 billion,
a
very
progress, social security, and the
rolling in.
In fact, 1 the govern¬ of government securities. Recently
exorbitant proportion.
usually comes out each year at
»>
ment would probably have to reg¬
almost
universal
pension
pro¬
the
government
Bond
Market
about that time), and the corre¬
The municipalities are, at the
ulate the onrush by issuing only a
grams, their number is each year
collapsed because an orderly mar¬
sponding figure for the then cur¬
present, taxed to the limit. High
rapidly
increasing)
are
being certain amount and then letting ket
was
not
maintained.
Now
rent year.
For the sake of sim¬
interest rate will prevent them
squeezed to extinction. They feel the economy adjust itself before there has been an alarming trend
%
plicity, fractions could be dropped
maxing
capital
improve¬
robbed—they paid into the Social issuing more.
away from
this practice due to ments.
and the rate fixed at the nearest
r
Pension
funds
insurance the
Security, Pension Plan or Savings
instability of the market for
rate in "dimes," that is, 2.60, 2.80.
The municipalities used to sell
Bank, 1920-1930, 1940 or 1950 dol¬ funds, savings funds, as well as a securities of the United States
their tax free bonds at 2%. On a
3.10, etc.
^
lars
and'
now
they
are
being lot of stock money, would dash Government, the safest investment
In
like
manner
should
the
$10 million
capital investment,
handed dollars cut down to
in and the public would each year
in the world.
government at any time desire to size. It's a
they had to impose a new tax of
be vividly reminded of inflation's
bare swindle if anyone
retire any particular year's issue,
To restore confidence and sta¬
$250,000 annually, to cover $200,borrowed a bushel of wheat from
progress. Labor need: not fear any
it would be redeemed at par, plus
his neighbor and the following restrictive laws—they would not bility, the government bond mar¬ 000 for 2% interest and $50,000 for
cr minus the
difference between
ket must, to the greatest possible
xk% amortization.
year brought him a peck measure
be necessary. Wage boosts based
the cost of living figure in the
be
divorced
from
the
Today the municipalities have
of wheat with a bushel mark on
on
boosted prices would become extent,
year of issue and that of the year
money
policy of the Fed.
This to
pay
4%,
so
for
the same
it,
he
would
be
lucky
if
he unpopular; - the consumer would
of redemption.
could be achieved by:
project they have to impose a tax
see
that HE pays the boost—the
escaped before the neighbor got
(E)
The interest and capital the family shotgun down off the workingraan being the greatest
(1) Acceptance by the Fed of twice as much, $450,000 to cover
gain or loss (in the event of re¬ antlers in the kitchen.
consumer would
see
the folly of
specified government bonds $400,000 for interest and $50,000
>
as
collateral for loans
of for amortization.
demption of principal) shall be
Thesq
older
people
and
all it all. Labor leaders would no
prisoners of the Versailles Treaty
—they couldn't possibly avoid in¬

pany

„

—

.—

free of all income and other taxes

others who still have

—state and Federal.

left, after frantically scanning the

by Mr. Rovensky to
Secretai*y of the Treasury Robert B. An¬
♦Text

letter

derson.

horizon,

are

some

capital

being forced into the

stock

market.

since

its

The

stock

market

inception has had quite

longer have to vie with one an-'
other in boosting the wage-price
spiral.
We always did have and prob¬
.

ably always will have a-moderate

75-80% of market value at

y4%

higher than

the

pre¬

The confidence
ment

bonds

must

U. S. Govern¬

restored,
a point

vailing rediscount rate, but
no higher than
the coupon

otherwise there will reach

rate.

distribute

where it will be hard to
new

seM and

issues to. the public.

Volume

168

Number

5796

The Commercial and Financial Chronicle

(2103)
(8)

Opportunities in Washington, D.C.
By RALPH S. RICHARD, M. B. A;*'
General Partner, Johnston, Lemon & Co.

; ;

Washington, D. C.
'

achieved

these

successful performance from their investments

a more

•

'•*

other markets other than

century,

advised
to

claimed

there

fact,

practically

were

most

y;.;.

Brielly, let's
panics

pre dictions

(1)
They

mostly
ignored as be¬
ing unrealistic
were

and

have

and

trust

■

;

decades

most
ivicnara

much

from

services

Earnings

last" three

the

believe

enjoying

tially

these

was

the

most

and

least

built-in

the

result

par¬

effects

stabilizers,

With the development of
the
industrial age> all business organi¬
zations have had a tendency and

trend

larger and more
These larger business

grow

complex.
organizations, both manufacturing
and
services, have increasingly
demanded

greater

the

able

banks

amounts

Investment

Washington
Fund

District
These

Com¬

Mutual

the

was

first

tunity to"
list

funds

fis¬

Columbia

offered

In¬

eonw

for

legal
first

the

list.
time

the

public an oppor¬
purchase a high grade

securities
in

one

legal for trust
package and in any

amount they desire to invest.

cal policy has been authored
by
these'.local- men.
They are held

.Atomic

;

Development

Fund

specializing in securities directly
<

in someway connected with the
atomic energy field.
or

dividend payouts have been about

the

somewhat

ance

proposed

above

Power

the

outstanding
opinion is

and

assured

likely in the future to be
outstanding utility in this area.
Department

(3)

Stores:

•

very

Julias :

and
are

Woodward

Lothrop.

recognized

nominal

cost.

plan

There

some
12-14
such
plans
country-.

at
are

mer¬

competitors

chandisers in the whole country.

sion.

;

banks

have

pensable
term

performed

service

their

financingof

;

and

process

these

short-

receivable

companies.

oil

patent
device

so-called

which

Bank;
Security-First Na¬
Bank;
American
Trust
Company, - San
Francisco,
and
California Bank, Los Angeles.
The merged syndicate paid a
$79,649 premium for $15 million 1
Los Angeles
City High School:District Bonds; a $53,939 premium
for $10 million Los Angeles
CitySchool District Bonds; and a
$16,-I.
131 premium for $3 million Los.
Angeles
City
Junior
College

possible.

work

fact,

scanning

their

has

develop¬
in

resulted

the

Bonds.

card,

punch
equipment
being
speeded up from around 110 units
Iq. 180 units per minute. They
claim their machine can read at
a'rate up to 600 units per minute.

the

for
to

yield

bond

from

sales

additions

the

tional

Throughout this land in every
city of 50,090 population up, there
have been many efficiently oper¬
ated businesses which have of¬
fered
outstanding
opportunities
for

the

investor

employ

Los

will

Insurance

Companies:

and

for

five

duration.

The

writing accounts have supplied
nearly $595 million for civic improvements

required

year

groups,

company

petitive
assured

with this new

through

successful comprovide
an

financing,
of

source

funds

scope.

Washington, D. C.

area

branch

has

office

1521

many

outstanding opportunities to

sur¬

where in nine years $1.50
original investment has enhanced
over $125.
Y
V»

rounding > areas
are
composed
principally of services and very
small light manufacturing com¬
panies.
This, being the seat of

•
,

United Services Life Insurance, ;
which wrote over $60,000,000 -in,
1957

and has over $300,000,000 in ;
force. Over 26 agents in the
$1,-,
nearly a"
•
;. Y. YZ; '
world capital, has offered many 000,000 class.
Peoples Life Insurance Comopportunities associated with a
pany,
in which a recent public,
steady high per capita income.
offering unveiled to the public.an
In this environment
national

our

and

■.

■

develop

some very

have

seen

successful local

outstanding growth record.

V " '

companies.
:

Compares

Performance

With

New York Market

May I
to inject
years,

diverge for a moment
this thought. Over the
most investors in Washing¬

ton securities have

(5) Drug Chains: Peoples Drugs,
the
old
stalwart, and the new
Drug Fair, which with its many
well

new

•

enjoyed

successful performances from

in¬

vanced
is

Loan

ment

board

promotion

room

cases

greater ele¬
and strictly

gambling associated

with the New
most

the

York

markets,

the uninformed

tually is left holding
priced. items.
•

even¬

the

over¬

Companies:

1935

;

national chain,

ment and

outstanding manage¬
real growth situation.

Lincoln

Service

and

Govern¬

ment

Employees Corporation have
each
multiplied investors funds

several
•

times

Personal

you

know

over.

Industrial
as

build investment

sev¬

size, with $80,000,000 in

Bankers,
Lenders, is making

progress.

(7) Restaurant

Although a number of our com¬
panies are listed on the exchanges,

;

State

Finance
Corporation.
single Mt. Rainier office

assets.

ad¬

and

practices,

From

enth

attributed

Finance

(6)

telligent; investing

sites

making creditable strides.

markets than their

in our local
migrations off
to
the
more
speculative
New
York, national and foreign mar¬
kets. At least a part of this can

chosen

merchandising

produced goods wort h $213 millions—

petroleum products.

The

2.4 times the 1950

opportunities
and

1957, Puerto Rico's skilled, busy factory-

workers

figure. Modern Puerto Rico
making impressive, balanced economic

and flexibility of Puerto Rico's
dynamic

energy

labor force and the Commonwealth's
program

progress.

for all-round development are major
integrity of Puerto Rico's credit.

factors in the

Industrial plants in the Commonwealth now

Investors will be welt

produce

the merits of the general

from

over

260 different articles, ranging

abrasives,

electronic instruments

and

chemicals to fruit concentrates, jewelry, paints

enue

repaid for investigating
obligation and rev¬
Authority bonds of Puerto Rico and the

substantial tax-free income they assure.

and Hotel Liner

bar

principal

markets

are

tin-

The Hot Shoppes is the most effi¬
cient operator on which there is

GOVERNMENT DEVELOPMENT

public information. They have

BANK

ex¬

*An address
by Mr. Richard before
the D. C. Bankers Association,
Fiduciary

cellent management and are grow¬
ing. Their motels will offer keen

Section, Washington, D. C., Oct. Zl, 1958.

competition.

FOR PUERTO RICO

Fiscal Agent for the Gomftionfvealth of Puerto Rico

Cypress;

Avenue under the management of
Lester M. Grant.

Government Employees Life In- *
surance,

The Washington, DC., and

all

ingenious device.
public facilities, such as schools,
commonly known that
water and sewer systems and hos¬
public
pitals.
offering the Washington investing
public has been the largest holders
of Hecht Company, Potomac Elec¬
Grant, Fontaine Branch
tric Power and Washington Gas
WALNUT CREEK, Cal.—Grant,
Light Company.
Fontaine
&
Co.
has
opened
a

Y» >

for

It is not

This

•

Califor¬

from the time of their first

offered and will continue to offer

nia's rapidly expanding economy.
The Bank and
its underwriting

used

plant.

tional

the past 12 months Bank of
American N. T. & S. A. under¬

This

his

savings.
;

(4)

tcY

improvements :
Angeles City Educa¬

Government

•

1.90%

and

Employees Insurance.
casualty company is one of
the Horatio Alger -stories of our ;
time.
It still possesses fantastic ;
growth potential and is now.na-"

;

•

attention

national

according to maturity Dec.!1959-1983, inclusive. Proceeds

1;
of

Oil Company; the Standard Oil
Company; the Standard Oil Com¬
pany of California; Socony Mobil,
and, also, by The Farrington Man¬

attracted

carried

3.55%.

Express
Travelers
the Southern Ohio Bell
Telephone
Company to process
monthly
statements;
The
Shell

equipment and this

three issues

The bonds were reoffered to in-

vestors

Checks;

has

AI1

3% % coupon, and the net interest-i
cost to the districts was 3.45%.
1

Their equipment is being used by
the Bank of New York to process

this

basic

matter to almost perfect accuracy
much
faster
than
is
humanly

ment

pur¬

Los- Angeles
City
issues totaling $28

tional

read all printed

can

City

thinking
groups
example, I have had
occasion to examine an organiza¬
tion in nearby Virginia known as
Intelligent" Machines
Research,
a

Bond

Chase

group

on Nov. 18..
Other major
participators in the underwriting
group
were
The First National

original

have5

with

Rank

million

For

merged

three

School

been

claims

chase

Some; such

here.

Manhattan

services !;in

accounts

many

An underwriting syndicate
headed by Bank of America N. T.

indis¬

■

dividuals could provide the needed
funds for operations and expan¬

side.

the

All

excellent companies and rank

among the better

building

But again, in our plan we are
offering something new and better
which the commission charges
are very much below any of our

Garfinckel; The Hecht Company;

estate

other

Offered to Investors ;

Our commercial

area.

and

which pays off any unpaid
portion of the plan at the death
of the .insured. < This offers an

ap¬

Electric

been

has

performer
still

average

Virginia

the

recently dis¬ ufacturing Company to process oil
average.
One of these issues has" cussed variable types. These pay¬ and gas charge tickets. There are
been about average and the other ments may also provide life insur¬ many additional applications for

preciation.

have definite

very

American

More
Power Company and Washington
recently
each
of
these
funds may be purchased
Gas Light Company have provided
through
low cost energy at much below a
monthly
contractual
p 1 a n,
the national average cost.
Their similar to an annuity payment of

capital.

Only the corporate form
organization drawing on the
savings of many thousands of in¬

Mutual

organized offering shares to
the public in which all investments
were
chosen from those on the

some

Much

(11)

Washington

which

pany

payouts.

have

executives.

Giant

fact,

$28 Million Issue of

engineering and scien¬
organizations started in the

tific

Middle ;for

Food Properties,
shopping center chain.
\ -

vestors

are

constructive non-Federal

our

the"

favorable period we are

now

recession Was arrested

recent

the

during

and

many mistakes of the laissez fane,
in. high esteem'in financial cir¬
periods. There have been, many
cles in other parts of
<the'Country.
responses
to
the
built-in
sta¬
(2) -Utilities: Potomac Electric
bilizers
which
have
been
in¬

augurated

ends

area.

panies:

excellent

dividend

"Our local

tors.

learned

both

Building; National Mortgage
Investment; and a recent new¬

Banks:

However, substantial profits have
been made by the
patient inves¬

govern¬
nas

provided

small

stances

Kaip.i

Southern

(10) Real Estate Line: National

com- -

•

below—but in most in¬

average to

business

V.;'Y' comer

the

over

Outstanding

have

.communities.

our

dreaming.

ment

;V ,Y.

have here:

Many

commercial

and ridiculous

Our

Press

opportunity to defend

Specifies Local Films

pretty much
populated the
new
horizons.;

many

y, ; A C
frkT
enhancement| of

greener

successful

very

ItY'Y:

accurate

been

y
fot

./■"

„.

investor

clear-cut evidence by
many years
of performance to
substantiate they
fact that the grass is not

as Melpar, Inc., have
amalgamated with national
organizations. There are still other

the

ing

Atlantic

welcome

what

Chemical

;•

have

his funds. In

•

As efficient in
understood, but it ;is the 5
every
largest market both in volume and : respect as comparable operations
dollars. It is our principal market' by Union; Carbide.
;

was

later turned
out

*,?:■>■.

Oxygen: A conservative
sophisti¬
cated management that is
expand¬

well;

horizons.

unlimited possibilities. In

shares.

There

•.>

in the United States and I
always-

men

new

(9)

Washington, D. C.

listed." The unlisted market is not

counsel
West

wise

ago,

young

conquer

enormous

rwtential

in the local market than their investments in New York and

;

•

develop into
.organization;- The
staggers one's imagina¬
tion. Every wise
investing busi¬
nessman
should
own
some
of

not, however, necessarily nor exclusively confined to the
District itself. Mr. Richard, in passing, believes investors have

the

Bank

Washington, D. C. partner singles oat worthwhile security
offerings of firms in the local area all of whose activities are

•

Special

„

And Local Securities
;

.•

Under

Finance:
And V there
are
martyr oilier
operates
a ;
companies, too numerous to men¬
world wide officer finance serv¬
tion
here.
Some
with
limited
ice. Also, controls and is
affiliated floating supply of shares.
vyith many insurance and banking
Perhaps we would1 nbt be far
institutions in the United States out of line
to include the rounieh
and the Liberian Trust
Company pal issues of Montgomery and
in Liberia. A Liberian
subsidiary Prince
Georges, Arlington and
is the third largest
registrant of Fairfax counties.
merchant shipping in the world. i.
;
This, company should
Engineering and Scientific Flints
•;

International

P.O. Box 4591, San Juan, Puerto Rico

37 Wall

Street, New York 5, N. Y.

•

The Commercial and Financial Chronicle

(2104)

Thursday, November 20, 1958.

...

"
•

•

plants

•

-I

•"

...

the

•

■

•

■

•

The United
T1

United, rights of each of us.

garden1, of

been

•

disenfranchised >;jrbm

vjhe
^; £xatesfCanada -relations ^i^uired^; States is, our largest customer but bounties of/Providence^/It isAal
cust
Ji+tlfi or no nniiriehi^iiAfl'hr t:are.^
friim +l-.o TTnil
little: rir'nn nourishmentc br ^irA*'^• nnnnti'iMr from the United States primary duty to be our brother's purchases
far exceed- by hundreds of mil¬
keeper to those underdeveloped
^ Beneficial- Changes > v..
lions of dollars our sales to the areas of the world and to qgive aid^
,

v.-,

Prime Minister of Canada

carefully nurtured; they are being
trained up and guided, not left
to grow

continuing discussion of trade and economic prob¬
assure unity, recalls beneficial changes that

that

Abraham

decision

„

achieved

the

,cesslal mingUng.

w.^a

wSchee tlnnp

htib

hooe

--En

"t
•

peace

the

4„

world

free

the

economically

therirnoment.

less

must

co-operate

defense.

that

freedom

allow

the

economically

any

weakening
the

free

view

United

the

In this regard the recent extension bv Congress of the Re-

' in

States

look

with

open

were reviewed,..

.
to

t
Canada, dependent as my coun-

to <

;

.May 1 divert here to say that try
Rome
encouraging , aspect ot
-I
.events of the past year has been
which thp Pflitnr
a. most,

nor

thp-lYinnnor

major exports of wheat.
not built in a day

was

can

mankind

this

era

this crusade for freedom

joined in

common

+ 1
repeat what I said at Dart¬
mouth, which still represents the

situation
to

now

:■

me.

it then appeared

;-'r

two countries, with

"Our

Britain, have
We

freedom.

Great

joint heritage of

united -in

are

our

preserve" our
heritage of spiritual values that
are
dearer than life itself.
To.
to

steadfast

that

preserve

un-.'

and

diminished unity that saved us in-

governments, our peoples,

war, our

must

give due regard-at all times

problems of each other with
infinite
respect,
tolerance
and
to the

y-»i /I Av»r»f

1 /""*n

■

consideration.

the days

"In

last

the

Americans

and

dians

ahead:many grave:
lace -our -peoples. "
analysis, how Cana-1

will

decisions
In

Brit-'

and

ishers get along is a -world test of

'neighborhood' international rela¬

than

good

amendments to Public Law 480

which is of particular importance

determination

tp the Parlian^ of Can-. stand taken by heartenedthis year m
trade. I was Congress by the
guide

the

pilgrim¬
age to duty, a pilgrimage imposed
upon us by the good fortune of
geography, history and tradition.

can

means

continue

•

n g

■

be the
politically

points

was re-

opened
VJJWICU

meet

nations.

which

ereign and independent as the
other;—while Canada is a raonarchy, whose Queen is the Queen
and of Canada, it has to he reiterated ■
rfiiu,

k i

p e a

family

'.debate

must

The measure of that frankness mind to the gradual evolution of
v™s ' evident in the: President's an expanding area of multilateral

Each of our nations is as sov-

lis h-

world

only the military but the economic offensive of the U.S.S.R., I
be]ieve that it is the language of
common sense that the nations of

North

things of
over-riding mandate is
must help those xvho have

n0^

tries.

this creed.

free

the

im-

afford

in race or nationality or

later;ences

years

at other times less

c>hat a'fewramongmen irrespective <3 differ-'?;
(-'■ within

the

some

blest with

living

become

less.

are

Cooperation

msa 11 e r s of ciprocal Trade Agreements Act
great importance to our ttfo coun- shows that the United States will

Q+ot«c

achievin"

ex¬

mutuai confideiice>

-in mankind'

fnr

that

technical,
shall

ours

Since

are

our

life,

trade

and

narrower.

America,

"expanding

Free World Economic

frankness and forthrightness and

ol races

TTnitnH

are

evidences

standards

not of (inclu-

one
as

can be

economic

that the gulf between their

panding world economy."

State Dulles to Ottawa in July,
On that occasion we examined in

Nmth

toat

zxinciicd

but

commonwealth

I recall the visit of President Eisenhower and Secretary of

trn

siveness)

(1)

„

best

then

controversial than at

uetween

the

summed

process

general than might

more
case

the City of

The theme of that Con-

| ference and its conclusion

provement to which I refer? In
answering this question I shall be

mn„Q

Montreal.

reassuring

which retains the best tra-

1759,

mate

was

of °ur

11X)aies

history

common

Plains

of the

oneI

was

What

numerous

over a year ago,

The

Common¬

took place in

ference

capacity for continu¬
ally repairing fences."
ship

and advises we
differing local demands of groups within
each nation but, instead, treat each problem that arises in terms
of realizing the economic strength and well being of each
country as essential to the security of the other. Turning to
the Soviet economic offensive, he stresses keeping each free
nation economically strong and suggests the free world nations
cooperate economically, as in defense, against the JLJ.S.S.R.
College talk of

placate

jungle-wild.

both

month ago

truly said "the art of friend¬

once

Dartmouth
not try to

being accomplished since his

are

Only

wealth Trade and Economic Con¬

is not complete, and will never be
for
as
Robert
Louis
Stevenson

lems is needed to

have been and

that- beneficial ' United States.

mouth 14 months ago. The plants
in
the
garden are being more

Despite af hiding of improved relations occurring between
Canada and the U. S. A., the Prime Minister reports problems
in the area of trade and economics still persist. Mr. Diefenbaker
declares

feel reassured

changes have taken place in these
relations since I .spoke at Dart¬

DIEFENBAKER*

By RT. IION. JOHN G.

L-

tions... "/,•

fin concor,(l with. Jhe other free
nations,, the solidarity of Anglo,

01"Ito-t
G.

John

UietenoaKcr

the

North.:d'^o"the"remTest iplaced

tradition

Ne^Worid

phSl

and

experiment

the

political

reabsorbed these ideas

later

provide

ideological

fire

turn

few years

the

some

its

for

own

played by peace-keeping
Britain, and in the 20th, by
towering and powerful United
was

Great

States.-Paradoxicaliy,

the

out of

separation of 1776 has come added
strength to the liberty of men
everywhere in the "world "and in

ever-increasing measure AngloAmerican friendship has become
a major foundation for
the preservationi of

free

and

democratic

society in.the Western World
In

that

shares,

whole.

have

and

taken

and

friendship

Canada

States

If, in each of the problems that
..

•

-£

key to whether we succeed or fail
in
our
great quest to maintain
freedom
for .. this
and " future

1 -

generations."

Austrian Bond Issue

...

o£ each of our
?atlo"i keeP. constantly before
ans.e the leaders

in V. S.

Canada
the

United

different

vet

fe:

noroiioi

have in the process of

; As Nicholas Murray Butler said,

ernmenUhat these

distTnt

series

ieally

Independence

fnuprnmont

u»».a

and

^+4^.;

its

self-

men

Tcol/nies

off inthk
econom-

infc /ev
infancey,

their

f nf nfinan-

ciallv helDless and denendent

•

Committee,

This

•

which

would:be

which

lir

offered

the

will

hart

over the technical and th^ Unl'ed,,Sta't's ,they ,)vl11. matin & Co. The bonds would be
responsibilities which belong to never be insoluble. That spiritual ( unconditional direct general obli¬
our respective Chiefs of Staff, or unity .embraces a common ap- gations of the Republic of Austria.
way to take

the

functions

advisory

the proach to the decencies of cmlDe^ «ed living, a common belief in

Joint " Board

Permanent

Principal

would

issue

and interest on the
be payable in New

fense, but will provide a close and the needlessness of poverty, of;
intimate contact to the political ^?fasc aa^ illiteracy a common rency, or at the option of the,
leaders whose responsibility it is faith in
eventual ability of bondholder, at fixed rates of ex-:
Vienna in Austrian
they
traveL
arguments
how in the final analysis to decide on mep of goodwill to solve national change;r in
slowly
they' are apprehended* matters of the^^highest policy with aa4 mternational problems are the; schillings and in Frankfurt in4
action, how slowly it follows upon resPect to defense preparation. A ultimate and common beliefs of Deutsch marks.
It is expected that concurrently
conviction."
*
clear understanding and identity our people.
Being agreed on the essential of vi?.ws
regard to the saf^" -We are u^ted, m international with the offering of the bonds,
unitv of
two pm.Lipf i S
guarding of our peoples on this aims, purposes and ideals. Some- the International Bank for Recon¬

has

come

peoples.
of

our

now

all

the

Ideas

British

how

oiir

mandatory need of
and

care

maintenance

tions.
,

cur¬

slowlv

anity°t our two countries, I wish
continued

City in -United States

York

So it is in the historv

race.

the

suitable

onp

each

found

ago:

years

to refer to the

has

area-

We will always have to meet, public about Dec. 3 by an under¬
«It u
of thp mo<?t aotonnH
have its first meeting in the next" problems as they arise but m the writing group headed by ICuhn,
ing things in th%!Xrv of "ov/ iew months- wU1
seek in any sPirlt«al
between^Canada: Loeb & Co. and Ladenburgj^Thal-*
25

some

parallel courses towards the kind
of
political
sovereignty
which

people.

graphical regions and economic
groups within each of our nations.

well-being

will provide the

of the world and

nation expressed in that

story of
the
peoples spreading-through many
lands. In the 19th century the key

the world

(2) Arising out of the discussions with President Eisenhower,
a Cabinet Committee, to be known

the numerous differtne
cuier-

vital to the peace and

as the Canada-United States Com,
The Republic of Austria filed
mittee on Joint Defense, has been them thel realization that the eeoThe ideas of the Founders of this provided for,which will consult nomic strength and well-being of on Nov. 13 with the Securities

Since 1776 the story of freedom
has been in remarkable degree the

two countries it is difficult

friendship

Canadian-American

Petition regularly on matters bearing upon fa
AJ essentia!^^to tne security or and Exchange Commission a reg¬
time be- the common defense of the North ^ other, cooperation m economic . istration statement relating to
come the cornerstone of the Com- American Continent /: which lies aPa1^8 as 111 dcionse "w«l be as- , $25,000,000 external sinking fund
bonds
due Dec. 1, 1973,
English-speaking monwealth.
V
within the North Atlantic Treaty sur®d:
— dollar

revolution.

role

tatively and'.more frankly than
ever before.

changed. This Petition, delivered
the British after the battles of
Lexington, Concord and Bunker
H*ll ka<* been fought, embodied
the principles of the Statute of
Westminster of 1931, upon which
*he Commonwealth is now built,

self-

thought of France. France in

our

to reconcile
» reconcile

government: with/the ^rights of
and "Natural Law"
ideas
from

that the economic pol¬

Pfinorocc

man?

borrowed

assurance

amining and understanding the icies of each of us are consistent
members of the Con- various points at issue, as well as with the international objective
irtfinriincr .Tnbn
to
the
luanv
Doints
of
contact which is the maintenance of peace

signed bv 46

American

tinnntoi

thought,

added emphasis upon ex-

oiZeOUvTVanchPetition

nriiisn-

devotion

rela

good

Some 14 months

ago

sneak-

spcsK

pnn«npnt wm

a0"'1"?"4 »lU be thereby assured,

one

described the lives of those in

this

generation

cold

war

(3) Another important move has
been the action taken towards 'T>ovlng ,al®ays. b1,Uy?en. the
alTanging on nf Arici+o an/1 vocmtai* tower the region of endless tower
an organized basis
and the abyss, the good
piYpViariiyo
being

struction and Development (World

will

Bank)

equivalent
Austrian
ration

$25,000/100

the

and

Power Works

lend

agree

Electric

Power

Austrian

the

to ,thev
Corpo¬

Danube

Corporation jointly,

Government-affiliated corpo¬

two

rations.

each has been inspired
by a

com:

history by a common heritage of institutions, by the eternal
values of right and equal justice

mon

under law, and by a common in¬
ternational purpose — the main¬
tenance of peace in Freedom.

lined

Both

our

countries

have

of Canada has

gether

freedom.
-German
races

a unity among
by welding
equal terms and
in

tot

races

English
and

and

Dutch' and

of mankind.

Frpnrh"
aT1

the tensions of recent years are

,C°m'T1.i/tee> United States; Sena-

musT^mv

words' mons> the establishment of such

its duty and

re-

tors Alken and Capehart and Rep-, know that as mankind mustscien¬
knowing the arithmetic of now
resentatives Brooks Hays and tific destruction is almost limitCoffin

adopted

thnoo

the

United

States"

own

*A«»

Frpnrh
French

address

gr^at
has

—

by Mr. Diefenbaker be#•*» the Pilgrims-Society, New York
City,
Oct. 28, 1958.

recently visited

Ot-

less-

words

of sucl1 a Committee and the first - In this world watershed of
1
? of these meetings will take place history there can be no divergence
State Department in
Washington early in 1959.
in the dedication of free men in
the interest of the
(4) Then too, I should mention unity. In facing the world-wide
n/r"

ocoriKoj

„

peril'to freedom, we of the free
Cablnet Committee on Trade and world must in unswerving unity
r
cable to my country. Economic Questions which in a preserve those beliefs and tradiuJ' lurther stated, and . this had meeting, two months ago came to tions that make life not only
made abundantly clear: "It is grips with vsiricius^^ economic prob- worthwhile, but offer sure hope
a° n-ow'
w
n0^ ^€» anff" lems affecting our countries and and inspiration to all mankind.
American. an
&£ i0'"4 United States-Canada,

them

aDDltoable

-nnimtrv

raees^^ritish1^and
British and

Taces

have

tawa to further the establishment

is to look after

able to bring about
ab
'

different

these

sponsibility to consider Canadian
interests first."

purpose

been

"I emphasize that the Government

Unity of the Two Countries

views

Many Canadians have
that there

eluded

had

con-

developed

an assuniPtion that relations with
Canada
could ' be
takenfor
granted,

and

that

the

discussion

desire to

flowering

*
„

It- is

revealed

assure
_

■

Imbaianced

most

mutual

fairness,

I
Trade;

important

that

Canada must continue with

our

the

and

railroads, automation

Federal

telephone system
the 216-mile

construction of

Vienna-Salzburg"'Autobahn.
remaining one-half of the
of

ceeds

the

sale

the

The
pro-:

would be

applied,

bonds,,

entire proceeds of the

dam

the

Danube

-near

the,

Linz and a -generating
effort to assure new hope for the plant to have-a maximum total
betterment of peoples who have capability of 264,000 kilowatts.
others of like mind in a common

trade relations have regard to the

Federal

the

would be the
World Bank
loan, to financing, in -.pari, con¬
struction of the proposed Aschach
The great triangle of nations,
Great Britain, the United States hydro-power project consisting of

and

Approximately one-half of the
proceeds of the sale of the.
bonds would
be applied toward:
financing continuation of capital
expenditure programs of'the Re-:
public, including electrification of
net

City

Volume

Number 5796

188

The Commercial and Financial Chronicle

(2105)

WorM Bank Bonds Sold
A

I issue, of

new

^ Weaver will provide -further
tertainment.

.! LOS

oversubscribed

1973, ;

priced *.at

were

'accrued?interest.'
Tl^ bonds

Dec.

100%

20th,

the

Los-Angeles

and

Ualifornia
,

;

■

columnist
Times,

national

sports
17-

"'-

•

^
Crandall, Red Patterson, and. f (totrC^W
ball coaches Don Clark and Bill
^>-members

T, ?

and *

Barnes.

^7:?7.'.7

the

not

are

Nov.

Piltmore Hotel, Los Angeles. Na?^™,;li"
tionally known personalities Tfom'J?,(777
.7.. 7\7~.
>! - 7 r.
the world of sports invited to a#
;
St6rn ; AdmitsLoewv
tend include Casey Stengel* j Del

redeemable?;
prior ; to
Dec.- -1, '..1968 - except
through; tfe&Vbperation,; of^: aksinkr?;
Ing fund. tJnderdhe sinking fund,?"
-

Thursday,

:^1 as Master of Ceremonies1, and
"Se ^f "ibers and guests.wfll; he*ir.
n^ws and predictions oA

TherBond

..—

Seventh AhnualSports Lutfchdoii'

:fand?the:books^

bonds?,due

ANGELES

jClubkof Los Angeles will hold fits

\\dlting gTOupvcomprising 181 in~?
yestmept 1'irms >nd commercial ■?
banks and headed :joil)tly ;by
?
First
Boston Corp.?
and; Morgan.:
Stanley * & Co.
\vas' : quickly
closed. (The

:df;the

«,

undeTr

an:

C'j

Development (World
Bank)- 412%; ISv^yeau (bonds was. *
struction and

en-

,$100,000,000

Iriternaiional^oir 7ftbebK-7 ;!

offered.

Bond

to? ?£*b£ New York Stock Exchange,
haVP .announced .that David J.'

Among those speaking

members
Club

and

will

guests

the

William

Los

Angeles

Loewy, whp has spent his

Pocarovi^hi. nancJal fidd7wSrprevious^ as!,

formerly of Notre Dame and now sociated
football coach at

gen-

;eFa* partnership in tne firm.

Coliseum 7 7 ^r-

Memorial

Commission; and Mike

^ewy has been adrAitted to

H.:

1<BiU" Nicholas, General Manager,

Leht^an Brothers

with

Doodles for the:pastlTyears.;?'??: V. 7777

Loyola.

J,"

hiatu rity? Frotfr Decif l; ;1968.' 3he!

.boncis'are^ubjeGttooptionalvre??
[derpption: at prices - ranging;/fromS'
.1021/2 %;■ tdy-prard? ;?•??;/:•

'X?.?* rkkq'V:

As. in the case 'of other-World
Bank% issues?recehtly sold in this ?
country, the bank offered certain "
institutional

lege

investors

taking

of the bonds

on one

terly

from

dates

the

delayed

or more

March

through Dec. 1, 1960.
ment

fee

the

Pictured above is

privi¬

"Spanish

quar¬

1959

Lake

rate

three-

livery

percent

one

from

annum

purchasers

the

under

delayed

delivery

ment

expected

bank

coordinate

its

to
a

arrange¬

enable the
portion of

to declare

Toronto

bonds

marketed

the United States

negotiated
basis
by
underwriting
groups
headed by the First Boston Corp.
and Morgan Stanley & Co.
The
last previous sale involved $150,000,000

in May

of this

33A%

amounts

under

issues

cost

per

that evepy investor

himself

shou!6 give

;

'W--

■

share payable Dec. 19

group

of about 30

Montreal

and

were

what

And his

from New York,
might be described

newspapermen

invited

hospital;

schools;

churches;

centers,

shopping

and

fine

The Seven huge uranium

mills of the Rio Tinto Mining Com¬
combined capacity of over 19,000 cons of
ore per day, which represents 60% of the entire production of the
Algoma area. The dollar value of the daily uranium oxide pro¬
duction for Rio Tinto is $380,000. This uranium oxide is shipped
to Port Hope, Ontario, to the Eldorado Mining & Refining Limited
(Government-owned) where it is further converted into its fin¬
pany

•

bonds

drawn

Mark

—

This is for 75c

roads.

year.

Deutsche

Ontario

LAKE,

now consists of 2,000!modern homes; a population of 15,000;

modern

Giving; effect to the present
issue, to delivery of bonds under
.delayed delivery contracts, and
.to

mill

of Canada have

ished form.

;;
r

./r.

Every issue of the exchange

informative read*
subscription costs
$1.50. And right now is a perfect time to give this lively maga*
as an extra Christmas gift to your friends, associates an(|
abundant with enjoyable and

size magazine, it's

ing the year 'round.

only
zine

the

present time the Rio Tinto group have Government
contracts for a total of $630,000,000.
These contracts expire in
1963 at which time they will be renegotiated. The industry hopes

ing, the bank's funded debt will
$1,845,141,039 which includes
:$1,597,790,000 payable in U. S.
to have many new peacetime uaes for the metal by that time and
.dollars
and.; the
equivalent
of
looks forward to a constantly expanding use of its ' ^products.
$247,351,039 payable in other curThe Rio Tinto mines in the area are Northspan Uranium
rencies.
:;... ?.., 'r 7 / .: '•■; "
Mines, the largest in the group and consisting of the Lacnor, Panel
From its establishment to Sept,
and Spanish American mines. Second largest is Algom Uranium!
30, 1958; the bank had entered
Mines Ltd. which consists of two mills — Algom Quirke and
",be

Amazingly, a full year's

particularly yourself.

$630,900,000 in Government Contracts
At

Magazine brings fresh, helpful in*and investing. A monthly, digest-

formation about business*, finance

Good

down

borrow¬

fpiends

"See it for

ago,

ten-year

main

yourself" tour of the properties and one of the
most interesting developments was the stay at the Town of Elliott
Lake. This town, which was an uncharted wilderness two years

This is the tenth issue of World
Bank

the

operation, has its office and mine dry building

dividend.

Recently

individual prefer¬
light of their own
cash positions.

the

projected

shows

to holders of record Dec. 5.

suit

picture

into full production'its seven uranium mills in the Algoma area.
Pronto Uranium mines, one of this group, is the first in the area

ments and also to make it possible
for the purchasers to arrange pay¬

ences

the

approximately
$200,00p,000 and a little more than two years of intensive prepara¬
tion and mill construction, the Rio Tinto Mining Company of
Canada Limited can proudly point to its achievement of bringing

borrowings with loan disburse¬

ments

background,

ELLIOTT

•%

the

to the left, not shown.

delayed

delivery contracts.

tons per day

Dec.

2, 1958 to de¬
be paid by the bank

will

The

per

portion of Northspan Uranium Mines'

buildings, production shaft and crushing house in the centre,
with the boiler house at left. "Spanish American," a 2,000-

A commit¬
"

quarters

American"

Property, one of the seven producing
mines in the Rio Tinto Mining Company group. With Quirke

delivery

For

reading for every investor

example, in the current issue

about how

you'll find a fascinating article
company's unique and highly-

major mineral producing

successful incentive plan helped

boost net profits f rom $144,000 to

There's a fresh report on cash dividends
months of 1958. It shows how sharp dividend

$2.3 million in ten years.
for the first nine
increases by

five groups made possible the

16th consecutive new

•

into

loan commitments in

ag-

7. Algom Nordic. These

are followed in size by Milliken Lake Ura-7
principal amount equiv- ; nium Mines and Pronto Uranium Mines Limited.
$4,111,387,893 to finance
In addition to the uranium companies in Algoma, Rio Tinto
programs- or projects in 49 coun- ;
Canada is providing management for a copper prospect near Blind
tries.
The loan commitments ef¬
River, Ontario, Pater Uranium Mines Limited, and for a gold mine,
fective and held by the bank as
Preston East Dome Mines Limited at South Porcupine, Ontario,
of Sept. 30* 1958, totaled $2,999,for a second copper prospect in northern Saskatchewan, Anglo051,062, of which the undisbursed
Rouyn Mines Limited, and for a small operating uranium mine,
balance was
$732,044,874M
..
also in Saskatchewan, Rix-Athabasca Uranium Mines Limited.
And more than $500,000 is being spent this year in exploration
for additional mineral deposits in Canada.
'

gregate

.alent

"Pri¬

Public Af¬
fairs" at;a luncheon meeting on
Thursday, Nov. 20, at The Bankers
Club, Harold H. Cook, Bond Club
and

Officers of The Rio Tinto Mining Company of Canada Limited*

Hirshhorn, Chairman of the Board; Hon. Robert
President; Dr. E. B. Gillanders, Executive VicePresident; W. B. Malone, Vice-President and Treasurer; Dr. D. R.
Derry, Vice-President (exploration); W. H. Bouck, Vice-President"
(legal); Henry Blaise, J. N. V. Duncan, Sam Harris, Sen. S. A.
Hayden, Rt. Hon. C. D. Howe?B. R. P. MacKenzie,. Leo Model,
Frank Petito and Sir Mark Turner, directors.
.*
H.

Winters,

.»

Advertisers

■

Admits Richard D. Foer

Exchange has announced the elec-

Richard D. Foer, member of

the

tion of the following as members New York Stock Exchange, was
the Exchange:
admitted to partnershipin the
^ddressdhe monthly luncheon- ~ George M. Grego, Jr., Denyven, New York Stock Exchange firm

meeting of the New York Finan-

Salvatore

cial Advertisers at the New York

linois; Robert W.

University Club

Nov. 20. Kcrmit

Schweithelm^ Assistant VicePresident, Chase Manhattan Bank,
will preside-at the meeting.

receiving*

below. Do it now. Your subscription will

informative November issue, or the

December issue, a$

you'prefer.

;

the exchange

THE

EXCHANGE

Magazine is not sold on newsstands.

[
j

the exchange

TB-13

Magazine, Dept. 7

j
J

of the exchange Magazine—beginning
with the November issued December issued

Grego,

Chicago,

Haack,

II-

Robert

of John Muir & Co.,-39 Broadway,

W. Baird & Co., Milwaukee, Wis- New Y'ork City/on Nov 6th consin; and Robert A. Podesta,:
's
' * •. '"V-**
Cruttenden, Podesta & Co., ChiJ°hn Muir & Co. was estabcago, Illinois.
lished in 1898.
.

sues

is*

11 Wall Street, New York 5, New York

Enclosed is $l..r>0. Please send the next 12

at the

following address:

address-STATE.

city.

please enter Gift Subscriptions at 91.50 each
(remittance for which Is enclosed) for the attached

Also

names

and

initial

(December)

There is

Insert

gift card in .my name

with- .t)^,

copy.

limit to the number of ffift

I
i

name—

.Committee of the Midwest Stock

to rlear

Magazine makes wonderful giving and

Fill in and mail the coupon

Carl Spielvogel, advertising coltimnist of the New York "Times,"
will

investor's pocketbook.

JohnMuir&Co.

CHICAGO, 111. —The Executive
r*

other topics close to the

Chicago Exch. Members

President; announced.7

rill.

many

the exchange

include Joseph H.

Kappel, President
of American Telephone and Tele¬
graph Company* will address The

stocks out of fifty hold the same

popularity ranking as they did a year ago. There are articles on
convertible bonds, preferred fluctuations, shareowner growth and

begin with the bright,

Rio Tinto's Management Slate
:

Frederick R.

Enterprise

interesting to note that only seven

7 Hear Fred'k Kappet

.Bond Club of New York

stocks favored

N. Y. Bond CM fo

vate

Also included is a review of the top 50
by Monthly Investment Plan shareowners. It is

peak in dividend payments.

subscriptions

The Commercial and Financial Chronicle

(2106)

Company, completed

30 years of

service with the bank

John

NEW

Bankers

and

OFFICERS, ETC.

REVISED

Nov.

elected to

was

CAPITALIZATIONS

Mr.

has

Kley

•

Negotiations
which
New

Chase

Co.,

Bank,

ber

both banks declined further

The

named

was

Assistant Trea-

Acquisition

in 1955.

Clinton

Trust,
of $42,strengthen Chase
Manhattan's claim to recognition
..s the city's biggest bank and the
country's sec-ond largest.
In resources, Chase's Sept. 30
statement showed a total, of $7,of

with

Sept. 30
146,000, would

merger

The
of

Cashier.

Stern

Bank

joined

member

rffiliate, City Bank Farmers Trust
Company, New York, in 1943.
1951 he

assigned to the Bank

was

Trust Company

East

River

appointment of Thomas J.
Foley as an Assistant Secretary of
Company,

Leo M.

Board

Foley joined the bank in
assigned to the Comp^roller's Department in charge of.
He is

Account

Index

office at

the

Trustees

O'Neil

East

first

introduced

IU45

t;,

:;t

Manufacturers

Trust

opening

Broadway,
Astoria,
Queens
-W 17. Vincent J. Boiler is
pointed

officer

Herman
XT

ap-

Bickford,

ents

Nov.

13,

election

ison

i'n

Long
in

Island

office

Melville,

.u!
will be

the oldest and

administrative

new

Melville office will be-

tional

Joseph E. Hughes, Chairman

the

company
were

ington

and

Assistant
Mr.
<

1927.

officer in

areer

fany

was

named

and

elected an
Vice-President in 1946.

began

Western

Bankers

his

New

banking

named

was

York

Trust

department

White

and

Company's
1944.

Mr.

Assistant

Treasurer of the bank in 1951 and
..n

Assistant

consolidated,

•

will

89,428
par

shareholders without cost to them,
A
'
7

(3)

V
■

holders

85,170 new
stock, with
to the share¬

Bank's

rights

as
of Nov. 14,
share. Basis for
offering is to be one share
for each 35 shares currently out¬
standing.
7,..:'

stock

record

at $60 per

1958,

this

$200,000
of tne

The

the

preemptive

Bank,

Bradford, Pa.,
as

offering

and

Citizens National

effective

surplus

and

a stock dividend
shares of the Bank's
value stock, being 3% of
the 2,980,950 shares currently out¬
standing,
to
be
distributed
to

Issuance

con¬

the

dividend

stock

and

stock of

$50,000; and Tne
H>

American National Bank of Ebens-

burg,

Trust Company,

and

pro¬

completed,

capital

common

meeting

shareholders

completion of the increase in
capital
stock
will
be
effective
National BanK.
upon
formal
approval
by
the
-/•_
:
Comptroller
of
the
i^
- f :jt
ft
■■
Currency.
Previous article appeared in the
The First National Bank of Car.column on Oct. 30, page 1786.
rolltown, Carrolltown, Pa., with

Vice-President

Conn.,

$600,000,
Bank

with

common

Ebensburg,

with

Pa.,

First National

The

-''.ft

Greenville

■'

National

Ex¬

change Bank, Greenville, Tex., in¬

com¬

its

creased

capital stock

common

from

$250,000

stock

dividend,

$500,000

by- a
effective Nov. 5.
(Number of shares outstanding—

50,000 shares, par value $10.)

of Car¬

Bank

The

into

Hartford

Trust

and

Com¬

rolltown

Mr. Jennison started with Bank-

and

under the

Carrolltown
Bank.

American

National

merger

$11,000,000.
The
effected under the

was

charter and title of Hartford Na¬
tional

Company in

and Trust

Bank

Company.

Y.,

Dr.

<
-

President

and

director

from $120 million in 1947
than $400 million today
number of offices from

certificate

Merger

approving
as

making

and

from

effective,

merger

State

President

mercial

Trust

has

the

Company

been

with

New

The

Augusta,

stock

Indiana

of Indianapolis,

10.
—

capital stock

$400,(W)0, effec¬
(Number of shares
16,000

shares,

par

Ind.,

$100,000,

National

Indianapolis, Ind.,

The merger was effected under the

retiring

but will continue
as

consultant.

Mr. Field

was

of Dec. 31,

Chairman and

the

Hanover Bank,

Trust

•

Commercial

before joining
in 1900.

and

The

Zimmer, who has been Ex¬
ecutive Vice-President, joined the
Commercial Trust's credit depart-

title

Stewart

has

been

Indiana

capital

stock

Bank

increased

$100,000

to $200,000 i by a
dividend, effective Nov. 4.
(Number of shares outstanding—

2,000 shares,

par

value $100.)". /'

H. -M. Knipfel, President of

Paul

Bank

for

111. —After their 6
Dinner on Monday, Nov. 17,
Chicago Bar Association,

CHICAGO,
p.m.
at

the

the Investment Women of Chicago

Discussion

Assistant

Manager'

the

Cooperatives,

The

Panel

was

composed

Eleanor

curities

Co.; Josephine S. Cleary,

The

KarCher, Channer Se¬

Northern

Trust

St. Paul, Minn., died Nov. 14.

His

Company;

Schmitt, Stein, Roe Be
Farnham; Florence Page, Selected
American Shares, Inc. The group
had as its Moderator, Marjorie H.
Barbara

Wells & Com¬
pany,-Chairman of the Discussion

Rosen,- Mullaney,

appointed

Meeting

"Governments."

National
was

held

stock

Lockhart

The

Janesvilie,. Wis.,

$12,500,000.

Indianapolis.

County

ment in 1924.
*

common

Rock

from

Mr.

stock of

The
of

Bank of

now

Y., for

years

charter
National

•

with the Hanover

National Bank of New York,

same period.
.
,
B. Fred Langworthy, Assistant

common

Chicago Inv. Women

Bank

Mr. Field is

durin€ the

County Trust

New

common

Com- \ into
I
with

4 Salvesen,
Vice-rPresident
and Auditor of The

Bank,

common

$300,000

outstanding
value $25.)

of The New Augusta

Jersey to succeed William J. Field.

39'

Treasurer in charge of the WestChester Avene office
of
The
County Trust Company, White
Plains, N. Y., completed 25 years
of service with the bank on Nov.
14-

stock dividend, The First
Bank of Orange, Calif.,

Nov.

tive

of the close of business Oct. 31,

the

National

issued

was

■

elected

and
17

Zimmer

Harry

when

the two institutions merged in
1947. He became Chairman on
July
1957. Under his leadership
the bank has gfown in deposits

increased its

stock

mon

title The

common

close of business Oct. 31.

;

special

(2) Issuance of

$12

■

National

stock

Bank's

bringing

under the

ft -"

Bradford,

common

the

$100,000,000;

of the

Hartford, Conn., with com¬

pany,

Hughes
joined The County Trust Company
as

with the Marine Trust Com-

joined
credit

1945

White

assets

Lion,

■

Tarry town,

Division.

institutions, joined the

Irving Trust

National

Former President of the Wash-

Edwin

Mr. Bickford, whose
group is
sponsible for providing informaanks

with

share¬

(1) A $13,000,000 increase in
capital and surplus of the Bank,

Trust

Bank

stock

Information

Con and advice for
correspondent
♦

■

Torrington,
Dr.

Curtiss, of the Foreign Diviion and Louis G.
Kreutzer, of the

company

Bank

posals,
when
provide for:

certificate was issued mon stock of $100,000, merged,
approving and making effective,' effective as of the close of busi¬
as of the close of business Oct. 31,
ness
Nov. 1.
The consolidation
the merger of The Torrington Na¬
was effected under the charter of
Merger

ca^lon 111 Suffolk County.

Vice-President

Treasurers

fetropolitan

of $600,000; and

and

the

Vermont

^5^nSi^o^Li^a^0na+S 17ttl lo~

announce-

U.
..

name

$42 million.

oyer

the Melville of-

flce. f.'ld certain

bank

the

as.

Bradford

Ratified
of

of $225,-

Bradford, Pa., with

will make
$2,000,000
cash

Bank,

dividend to the Bank.

stock of $50,000,

■

for

the

stock

the

trust

payment

Company of Red

of
the
increase, The
Corporation et al, wholly

holders

Vt.,, solidation was efteeied under tne
of the charter and title of The Bradford

This
bank
being
largest commercial

■'

The

made

National

date

owned

Trust

and

effected

was

and Trust
ft'

Brattleboro,
the

Texas,

approval

Bank

effective

Lion.

expanded

the

Vermont

resulted

has

staff

changed

bank

of the Board of Directors of The
roup and of Theodore Sedgwick County
Trust Company, White
s Assistant
Vice-President in the' p,a4ns» N. Y., on Nov. 12 marked
Foreign Division. Named to the 30 years of service with the bank.
fficial

Bank

whica

Edgerton P. Jen-

Investment

assistant

Republic

Dallas,

Simultaneously with the effec¬

tive

Howard

charter and title of First National

plans.

been

merged,

■

by the unification on June

tional

Huntington

seive

Windber

by:

Bank

fc-

due

has

voted

the Bank.

common

solidation
,

President of

expansion

...

the

Bank

Novv

Assistant

the

|ua!

The
the

building

shares,

plans

close of business Nov. 1. The con¬

'•"

(Number

Shareholders

of Red Lion, Red

have

30, of the Vermont Savings Bank
with
the
Vermont-Peoples
Na¬

°Peiatlons

Moore, Chairman

with

renovation

about

Maass, President of

5® con&tiucted to

■nent, Mr. Moore also made known
uie

major
This

Company,

^r' .Maass said a temporary offwe will be in operation within; a
fonth* A permanent building will

?£ the Board.
Coinciaent

Bank, Brattleboro, Vt., announced

announced

was

(

William I. Tucker,

..'ft

National

Liquidating

common

Pa., with

(Number of'shares outstanding

•

000; and The First National Bank
of
Stewartstown,
bi.ewart»toww,

from

Savings Bank, Brattleboro.

Carleton

William

value $20.)

par

of the liqui¬

care

Pa., with

Schenec¬

increased

was

Company

requirements of the bank brought
H.

National

.First

—35,000 shares, par value $25.)

charge

Group,
White, head of
?..e Finance Companies Group of
t inkers
Trust
Company, New
Vork, were
named
Vice-Presind

Y.,

necessary

opened

i Investment Information

■

Township.

Joseph

$1,stock

from

shares outstanding—100,000

committee: C. H. Hunt

Absorbed

$750,000 to $375,000, effective Nov.-

was a

Trust

24th

National Bank

tady,

the Security National Bank of L.I.,

charge.

hawk

^ew York.

114th branch office at 21-21

trustee

Nov.

of
Or¬

$1,800,000 to
$2,000,000 by the sale of new stock,

effective at the close

Oct.

Puto,
dating bank.
'

the Vermont National and Savings

}' 9

co,

Manufacturers

■

Company,

New York, announces the

effective

ta ir^i«

$1,800,000

and

shareholders

common

,x-'r of the advisory board of the
Brooklyn Trust branch of the

fust company in

Cnmnanv

became

its

and John

the sale of new stock the
capital stock of The Mo¬

former

..u

95?

Trust

and

dividend, effective Nov. 7.
Company, Windber, Pa.
(Number of shares outstanding—
ft
ft
ft
20,000 shares, par value $20.)

Nov.

business

agents or

capital stock
by:

dated Sept. 3,

and

$400,000

Bank

increa

was

700,000

charge of the Insurance Di¬

resolution

Scarsdale, N. Y.,

common

$200,000

National

dividend,

capital stock of $50,000, has gone
into
voluntary liquidation by a

stock

7 "Im
latter position unti

hfd

nationwide bank service
was

1- manufacturers

vf its

William

Brooklyn Savings Bank

Mr. Foley originated the idea of

tfie Personal Gift Check which has
since

110

from

O'Neil, Chairman of the

Mr.

Beaver

treet.

ecome a

increased its

President of the East Brooklyn
Savings Bank, Brooklyn, N. Y.,
14

Mr.

;

New

First

stock

•

Bank

The St. Michael National Bank,
St. t Michael,
Pa., with common

National

The

ft,

Company,

C. Flanigan, Chairman of the

the

Trust

is announced by Hor¬

Board.

new

Bank,

preview of the

Street, New York, N. Y.,
25.
-

1929.

Savings

announce

bank's

officers

and

ft :;-j.

■,

capital

common

lando, Fia.,

of Pittsburgh, Pa.

monthly,
Nov. 13.
Dr.
Saberski
was
formerly , a
member of NBW's TaiTytown Ad¬
visory Board.
:
meeting of the board

:**-

for increasing capital and
surplus of the Bank to $100,vision.
r,
000,000, it was announced jointly
Mr. Stark came to Mellon Bank
by Karl Hoblitzelle, Chairman of
in October 1951, and was assigned
the
Board,
Fred
F.
Florence,
to the Tabulating Division.
7
Chairman, Executive Committee,
■.V,
v
ft
'«« v-'T;';and James W. Aston, President of

action

The

joined Mellon National Bank

the

'***

1946 at the time of the merger
the two banks and at present

his

serve.

in 1926 with The Union

career

officers and staff will

same

continue to

Trust Company

National

Westchester.

Scarsdale

The

ace

Directors

The

Mr. Henderson started his bank¬

ing

and plans

being made to complete
tnis merger on Nov. 17.
"
'

Frank

to Mellon

and

Trust

and

now

Trust

vision.

the election

was

and

Bank

merger of tne two banks

announced.
came

Wacnovia

are

Cashiers

Savings

Company, N. C., have approved a

■

Bank

stockholders

and

Wilmington

Irust Company, Wilmington, N.

July 1956. After completing the
management training program he
was assigned to the Methods Di¬

taken at the regular

was

-t

directors

The

Center and

Pittsburgh, Pa.,

Mr; Ford

of Tuck-

Saberski

Eugene
of

Bank

...

trustees

York,

Trust

Dr.

The
of

trans¬

1936.

Also announced
of

The

actively associated with the
promotion of travelers checks.

New York,

Denton, Vice-Chairman of the

bank,

with First National

Bank

and for the past several years has
been

Manufacturers

Nov.

started

career

ahoe, N. Y„ in

Y f.' on
? announced the
election of Charles J. My loci as
Chairman of the Executive. CornP1!
r:
succeeds the
la*e Edward F. Barrett,

bank's

the

bank's

been Vice-President

Sundermann

Board

the

meeting

banking

New

National

Company,

Mr.

George O. Nodyne, President of
the East River Savings Bank, New

promotion of First Na-.

Stern

the

Since

Assistant

heads

Westchester,

vision.

Street.

tional City Bank Travelers Checks.

Mr.

York.

Avenue

ment at the main office at 48 Wall

promoted

Stern

Mr.

and

City

has

York

Charles
sale

National

First

New

Fifth

that Bank with The
York, he has been
of the Trust Depart¬

Bank
a

the

New

Bank,

affiliate, City Bank
Trust, together.

Farmers

with

810,000,000 behind that

tank and

Mellon

Chair¬ in charge of administration.
man
of the Board, The Bank of
Mr.
Sundermann
joined
Na¬
New York,
gave
a
luncheon in tional
Bank
of
Westchester
in
honor of the 50th Anniversary of March of 1955
coming from Man¬
Henry E. Burr, Assistant Trust ufacturers Trust Company, New
Officer, on Nov. 17.
1
York, where he was an officer in
Mr.
Burr
began his
banking the Correspondent Banking Di¬
career

Mellon

was

Gateway

Assistant

appointed

Vice-President

Albert C. Simmonds, Jr.,

its

about

■■

joined

and Robert J. Stark have been

son

was

T. Tyner, Jr., Board
announced.
Mr, Sun¬

dermann has

,36,598.095, which placed it ahead
itself,
ut

the

Mr.

1934, became Secre¬
tary in 1935, Vice-t-residenc in
1949, and President in 1952.
-ft

year

Knipfel

Craig G. Ford, Herbert Hender¬

Bank

board

13, Ralph
VA\7 Chairman,

resources

if First National City Bank
<<

monthly

62.

bank

Office, where he has been engaged
in all phases of banking.

White Plains, N. Y., at the

Bankers Trust Company

purer

was

the

Frank

came

■t

Sundermann

National

that

1957.

Executive

elected

23 years' experience with the
Irving Trust Company, New York,

com-

ment at this time.

July,

Frederick

than

beyond a confirmation
fact, representatives of

that

Lockhart

ferred

Executive -Vice-

■'

joined Bankers
Trust Company in 1952 after more
Sedgwick

ivir.

But

way.

President

1921 as a

page.

under

are

Trust Company

ers

absorb Clinton

York,

New

merger

Manhattan

York, would

rrust

for

Pa.,

age

Bank in January, 1952. In Decem¬

with

been

named

was

Pittsburgh,

Trust

and

Denton, Vice Cnairman of the
Mr.

County Trust Company since 1937
and

Bank

Bank, announced.

the banks
.

Office

Center

National

Company,

Board of Directors.

Gateway

Mellon

Kley, Executive VicePresident of The County
Trust
Company, White Plains, N. Y., on

CONSOLIDATIONS
NEW BRANCHES

' :«•

News About Banks

the

Nov. 15.

Thursday, November 20, 1958

...

Group Committee.

Volume

188

Number

5796

The Commercial and Financial Chronicle

(2107)

stallation.

$ An experimental section of a
style trading post went into

The future

potentialities of Africa

great chemical economy

as a

bling

trial operation Nov. 17 on the floor
of the New York Stock
Exchange.

located

play Is industry are two areas
be watched by every investor! He anticipates future displace¬
ment of steel, lead, zinc and other metals—-though not copper

fetto that, the

from

Carnegie,

{^obtained?•..*]

known

can

any

Thd

unless a large
quantity of
cheap electric

developed first.,
•?

power is near¬

has

by; This com¬
bination re¬

cart-

quires

This

With

•

vast

capital invest-

the

steel."

ments.

Only
electricity will

Rof«r W. Btb«M

work

so-called

But plastics
or

mold.

steel

are

^stainless

will not rust
very easy to
are

still in

great Chemical Age—and plastics
are just beginning to be used. My
belief is: that plastics will largely

metal from the clay at a satisfac¬

Several countries have

bauxite, but not the cheap

the

chrome,

it will not rust.

tarnish; they

separate the

use

made

replace steel, lead, zinc, and other
not
copper.
I con¬

power.

metals—but

In Northwest Africa this combi¬
nation has been found near the

•

them

"enter

The test model

altered
is

several

par¬

behind

the

counter, - rather than
The symbols and nu¬

are

backlighted

make

represents onea full
trading post, and
working space for five indicators are operated from three
specialists to handle up to 40 stock stanchions in front of the post
issues.
Differing from the horse- section, and a ,switch controls the
shoe-shaped posts first installed plus and minus signs indicating
in 1928,
the section is a saw* whether the price of the last sale
was up or down.
toothed design
The stanchions
which engineers
believe
and

will

give

their clerks

the

15,

grand

ballroom

Astoria.

■

•='

■■

•

the

and transport in its own steamers
the
cheapest
aluminum in the

also contain

specialists

tens'

convenient

use

transactions

offer

tube for the

world.

prices)

the

plate dinner. All proceeds derived
from

the

turned

sale

over

ference

building
standing

tickets

will

to the National

help

good

its

program

will

and

reader

wants

recommending
market; but if a
aluminum

investment—not for

stock

specu¬

lation—I believe he would do bet¬
ter to buy Alcoa than the stock
of any.

competitor..

'•*

/ft!9

'•

;

•

What About Gravity?

most

much

readers

interested

know, -1

discovering a
partial insulator of gravity. Such
a discovery would not
only be a
great blessing to everyone in time

but

peace,

the

nation

Protestants, Cath*'

1928

the

National

Conference

today a network of 64 regional
offices, each serving as a human
relations center in the largest cit¬
ies from coast to coast.

' '

•

if it

Such

ever comes.

break

enable
the

missiles

"gravity

■

where they are coordinated

HIGHLAND,
room
on

Streiff is
&

now

111.—Orville
;

to the

discovery
to
easily

barrier"

Association

Customers'

Brokers, will hold their Christmas
Buffet

-party

Whytes

Restaw*

and

moon.

p.m.

speed.

there

are

magnesium, and plasties will five and will represent the com¬
important part in industry pany jn Appletort. Mr. Day was
be watched by every
previously associated with a se*

play

•

NEW YORK STOCK EXCHANGE-STOCKS

f BOSTON STOCK EXCHANGE/
•
DETROIT STOCK EXCHANGE
A MIDWEST STOCK EXCHANGE

•

PACIFIC COAST STOCK EXCHANGE

•

NEW YORK

•

BANKS AND TRUST COMPANIES-

•

PHILADELPHIA-BALTIMORE STOCK
EXCHANGE

STOCK EXCHANGE-BONDS

two sides to the

GENERAL

PITTSBURGH STOCK EXCHANGE

QUOTATIONS
•

MUNICIPAL BONDSDOMESTIC

DOMESTIC

CANAOIAN

CANADIAN

•

PUBLIC UTILITY BONDS

•

EQUIPMENT TRUSTS (RR.)

•

PUBLIC UTILITY STOCKS

•

EXCHANGE SEATS

•

RAILR0A0 BONOS

FEDERAL LAND BANK

•

•
•

•

BONDS
FOREIGN GOVERNMENT BONDS

RAILROAD STOCKS

•

REAL ESTATE BONDS

•

REAL ESTATE STOCKS

•

UNITED STATES GOVERNMENT

•

UNITED STATES TERRITORIAL BONDS

INDUSTRIAL RUNGS

•

INDUSTRIAL AND MISCELLANEOUS STOCKS

•

INSURANCE STCCKS

•

INVESTING COMPANIES SECURITIES

SECURITIES

■

OTHER STATISTICAL INFORMATION

and

AMERICAN STOCK EXCHANGE'

apt to forget, that

num,

•

and buffet

at 6 p.m.
Tariff is $7 per person,
including buffet dinner, cocktails
and gratuities.
gravity
picture. Although all nations
Reservations may be made with
should seek vigorously for a par¬ Albert F. Frank,
Ladenbuxg, Thai*
tial
insulator
of
gravity,
they mann & Co., Chairman of the En*
should also demand greater use of tertainment
Committee, or Sam
lighter materials such as alumi¬ Minsky, Hardy &
Co., Co-Chair*
num, magnesium, and plastics. The man..
ship which I am on now has such
a large amount of
magnesium that
the captain is complaining because
With Milwaukee Co.
it gives bulk, but has no weight
APPLETON, Wis.—John H. Day
for ballast. In fact, my studies of has
joined The Milwaukee Com¬
gravity convince me that alumi¬ pany as a registered represents *

Investors

■

STOCK EXCHANGE QUOTATIONS
The

rant -on
Wednesday, Dec. 3. ;. A
Furthermore, it meeting of the association will be
would
revolutionize all airplane
held at 4:15 to be followed by
travel, increasing both safety and cocktails at 5:15
go

QUOTATIONS

WE GIVE

should

investor.

curities firm in

■

Chicago, j

Alloys for Strength

easily. This fact is slowing-the
building of trains and automobiles
with aluminum.
Great searches
are
going on in laboratories to
find an alloy which will combine
*no weight" with great strength.
_

are

soon

To Be

Oppenheimer, Neu

Effective Dec. 1st the firm

take place along these

Africa

very

plants.

investors

Oppenheimer, V&nden Broeck
& Co., 120 Broadway, New York
City, members of the New York

slowly
Africa

in
now

going

building steel
has only three

VOLUME OF TRADING

WILLIAM B. DANA CO.
25 PARK PLACE

Stock
to

Exchange, will be changed
Oppenheimer, Neu & Co.

William Hooven
William A. Hooven, Executive
Vice-President of the Palisades

Trust

Company

age of 61.
are

TIME LOAN RATES

•

•MONEY MARKET

PRIME BANKERS' ACCEPTANCES
SECURITIES CALLED FOR REDEMPTION

•

FOREIGN EXCHANGE

lines, including the making of all N.
J., passed

metals in every color.

•
•

CALL LOAN RATES
DOW, JONES STOCK AVERAGES

name

interested in control-

ing gravity should watch the met¬
allurgists who are seeking these
new alloys.
A complete revolution
may

•
•

Aluminum is very much lighter
than steel, but it will dent more

All who

•

away

SUBSCRIBE
TODAY

for

wish
one

year

N. Y.

the

Bank

for the sum of $45.

Name

Englewood,

Nov. 14 at the

Address

Before joining the Pal¬

isades -Trust
been

NEW YORK 7,

Company he had
partner in Halladay & Co.

of New York for

17 years.

City-

Zone

with A. G. Edwards

Sons, 1709 Broadway.

■

Customers' Brokers

;•

With A. G. Edwards
(Special to The Financial Chronicle)

which

first makes this discovery should
be the winner of World War III
would

umn.

under-c

SUBSCRIBE TO OUR MONTHLY

.tyi;

Con-r

report-

ticker

vestors^ in

now

stocks in this

;;

•.

reports of
as bid and

sending
<as well

FOR HARD TO FIND

your

the

Waldorf-

■

Eugene S. Hooper, President,
Manufacturers Trust Co., is serv*
ing as Chairman of the $50 per

among
olics and Jews.

readable.

dinner

tribution systems will have to be

doubled, including the wiring, of
hbuSe and office. Only in¬
undeveloped continents
like.Africa, who are not loaded
up with big, depreciating, obsolete
plants such as we have in the
U. S., * are free ; to - create truly
modem plants.-i With copper,.ura¬
nium, water power, coal,J and the
elements which make plastics at
her-door, Africa will create a
great chemical industry which will
astonish every reader of this col¬

located

atomic age

this should enable the Aluminum

the

sponsored by the National Con¬
ference of Christians and Jews to
be held Monday, Dec.

Company of America to produce

above

be the guests of honor at

addition, the board has been
The dinner is one of the major
raised to a height of about ten
feet
to
permit better visibility events marking the 30th anniver¬
from a distance.
The last sale sary of the organization. Founded

board

working conditions, while at the
same time
improving over-all ef¬
when
seacoast, which is also an advan¬
;
L
uranium or hydrogen from ordi¬ ficiency.
tage. Such an electric power plant
is now being built.
With cheap nary sea water is used to manu¬
African labor at $20 per month, facture cheap Electricity, all dis¬

■

that

tinue to be bullish on copper.

own

fourth of
there

Budinger,
Coggesball ft Stone

clerk will be

trial

it.

above

merals

been

specialist's

ultimately
vastly-improved

trading post."

To Honor

receive

at his

indicator

ticulars.

rated in the model will
be the basis for a

Possibilities

plastic

and

stock

Steel

States

Exchange's nationwide ticker

system.

messages.

trading post, which shows the
symbols and last sale prices,

final

be approved

"Changes are expected," he
Corp., I
added,
"but it
is
hoped
that,
now wonder if it ever would have
through a process of trial and
been formed if plastics had been
■change, the new ideas incorpo¬
United

carry

smooth.-

by Exchange members.

the

use

tory cost.

ity and usefulness before
recommendations

Morgan,
and
Frick
showed great foresight in forming

bauxite; but it
is

very

over

in¬

test

operation, it is
the
pneumatic
tubes, ultimately will carry
the
messages easily, whether they are
folded,
unfolded,
crumpled
or

practical¬

are

another

tape and transmitted

the specialist

to send

during the
anticipated

gbasco

fundamental investments, and that

clay/

"steels"

use

and messages

the

Services Inc. to improve
trading facilities.
;
I have written a column on gold such plants, although the conti¬ V. "The present test is
only an ex¬
and another on
copper; but an¬ nent has-xich iron ore. They be¬ periment,"
Mr. Funston empha¬
other industry which may become lieve that plastics will largely take
sized.
"Considerable
study
has
very important is the aluminum the place of steel in most building
gone into the new .design, but it
indu st r y.
1' "" developments:
Although I have must meet the tests of
t This metal
i s.

the

use

John M. Budinger, Vice-Presi¬
orders
dent, Bankers Trust Co.; James
station,
through, the tube system, without Coggeshall, President, First Bos¬
ton
Corp., ahd Jacob C. Stone,
using carriers of any kind.. While
written messages must be folded senior partner, Asiel & Co., will
able

"garage" off the
main trading floor, is part of a
brpad suryey of the floor's layout
and design. being conducted by

—by plastics, and examines Alcoa's endeavors in Africa.

Thus

plastics will
that Mr. Babson believes should

designed to
tubes, resem¬
shells, which are

shotgun

now

Exchange President Keith
Funston said the test
installation,

amd Hie important role aluminmn, magnesium and

This

master

system

eliminate the small

new

By ROGER W. BABSON

tube

unnecessary

carriers or cartridges is
important feature of the

New Trading Post

Aod

pneumatic

new

that makes it

' v

N. Y.S. E. Tries Out

State.

Quotation

The Commercial and Financial Chronicle

(2108)

nancing

Continued from page

xms

sum

can

John Nuveen & Co. Celebrates 60 Years

slave

free

states of the

is, not

submarines that show their backs
ice

the

making of staple products to
j

the

going to be solved
moon1 shots alone, by atomic

.that,
/•

and

world

an
.

installment

between

contest

states

Commercial Finance Industry

commercial

receivables.
The

Thursday, November 20, 1958

....

4.„

barriers,

The development of these areas tional politics
nf

fnnf'prn

«h;iiicvcxi

Ihp

wholp

Ameri-

ovillnva

or.

H-bombs

mountains.

move

may

Wicfanf

that
T»..^

.ralovia^

«.6W.U6

Interna-

require

w.JUu6i5

absolute expansion of the
economy.
We have always had
such expansions.
The motel in-;
dustry along our highways, with
investments of thousands to mil-

part in this .great adventure, times by.:how successfully- we
opening up these new frontiers to exploit the resources of the planet:
development, bringing the prod- on which we.stand, Mother Earth.:
ucts their resources cam provide
We have set up astrophysical
to.market for .the benefit of the

lions of dollars

whole people,

bounced

creating

many new

vivid example. The specialized sports oQuipmont industry,
the housing
industry, the
road-building industry, the bur-

jobs, is

products inflhistry
such examples,

forest

among

These

many

his-

of economic

lessons

tell us that such absolute
expansions
have
been
brought
about not by existing companies
alone, but by- new enterprises
which are, and must be, typically
tory

b-o
1

now

geoning
are

Financine and the

Conunercial
t

Frnntipr^

vpw

;

•

A balanced, expanding economy

the

r a

,t t) r'.i

in outer

e s

signals off the

we
sun.

about

are

But

our

and

approach

greatest

con-

tribution to the progress and welfare Gf mankind were not these,

cannot limit its interests to busi- That contribution

operations on its own tern- tion

ness

space,

moon

the

was

crea-

democratic

private
dories. American cooperation with enterprise system,, the" attitudes
Canadians in the development of and techniques by .which we have
Canada,has made that relatively achieved, high productivity andsmall country, small in population higher and higher living, stands
if uot in territory, one of the ards far all our people without
our

great nations of the world, one sacrificing our individual liberties
with which we carry on many or our freedom to develop our inr
mutually profitable exchanges of dividual. capacities to the fullest.
Absolute Expansion by Promoting goo.ds and services. We have other Our opponents in the game of
I
New Enterprises ;
r
goo.d.fcUstomers abroad with whom shooting the moon; have been able
In the later stages of recovery we could carry on trade relations to telescope history by pushing
the times will be more favorable at a more active rate than now economic development to the limit
for the establishment of new en- prevails if there were financial 0f the endurance of their
people,
small.

;

Then, I believe, they machinery to facilitate it.
.
encouraged as a matter
Some of our members have been
of national policy.
,•
;
active for some time in the field
But even in good times small of
export and import finance,
businesses are harrassed by a lack They have provided very useful
of capital. Our industry has done services.
But it may be that in

terprises.
be

must

They have been able to expand
their output on a scale compara-

ble with

our own

ment. .Vfhit

earlier develop-

they

have

not

beep
able to translate these gains into
just shares for their ordinary citi-

this lack. You that area more can be done. A zens, or into individual freedom,
only to review the records very interesting study by a New • We must not be complacent
of the companies nominated for York
economist, Claudio Segre, about this, howeverIf their rate
our annual achievement awards to
published this summer, maintains of productivity is maintained, it
its

share to meet

have

see

how

ices

funds

our

and

serv-

our

have

the volume

that

for

resources

will

enable

them

match

our

helped
enterprising
managements to raise relatively

financing

the New York and London money

output earlier than previous projections had let us to expect. To

small companies to national stat-

markets is below the level of the

maintain

our

economic

ure.

Twenties

our...military

strength,

We
we

have

done

can

share—but

our

The

more.

Federal

Government's Small Business Ad-

foreign

through

trade

and

represents an even
smaller United States contribution
since

the

some

originate

funds

with foreign banks.

well

must

to it that our rate of productivity matches theirs when it does
see

not

exceed

Our output must

\t.

ministration 'is expanding its ac-;
Import financing is not without
tivities and promises to be an its special difficulties but
export
important aid to small companies, finance confronts us with many

grow as we achieve continually
greater economy in the resources
wo use to achieve it.
Several of our institutions have
complex problems.
These probTo demonstrate to the world
cooperated with it in specific sit- Jems are familiar ones. Perhaps that people can enjoy both plenty
uations

the

and

teamwork

produced useful results.

has

More of

companies could interest

our

themselves
Small

this

Business

field.

The

Investment

Act

offers wider opportunities for the
small business to grow, and prom-

situations

also

cooperate

lses

effectively.

which

can

regional level
many
development commissions
are
active, some with financing
Some

companies
have found it possible to participate in the financing that their
activities make possible and more
could

our

Economic

so.

developputting neglected
to work, creating productive jobs and improving the
general level of living by making

ment consists of
resources

useful

last

products

available

not available

were

before.

generation

become

aware

lagging
areas

the

can

overcome.

Commercial

can

New

Financing and the

American

Frontiers

The cooperative efforts

the

private
enterprise can join with public
enterprise to
achieve
a
public
service objective.
"
That kind
not

stop at

Soon

market,

mon

our

Alaska,

cooperation need
continental borders,
a

relatively unde-

the result

and

the movement
free trade

by linking Britain and other

area

Western European

nations to the

ThU

nrnhWc

11 ™
problems for
H companies and oppor•

s'ome^xpoXfmlv^d

greater need for credit that
be met

that

has

become

showcase

democratic advance and a model
of rapid economic development,
We

have

areas,

other
less
developed
like the Virgin- Islands.

us to say what we will
do. Who shall live up to the great
trust? Who dares fail to try,„
This is the final battle that will

yieid

worked

services available.
to

which

considerable
>

industry if ways
out for making

Another

This is

should devote

in whiVh

mioht

'plfy^roirfs'in tee^o^c
development
nations
world.

under-developed

various

parts

win it. A sound, permanently

economy can

1959" ^

declsI011 ls ours"
Frw**v

rorm J*

omiM1 ^°-

have

Hagen

formed

Jimmie

North West

enga§e

Mr-

Third

Street

securities

Smith was
<

formerly

with

Co.; originally
incorporated in
-

Branches are veen/- son of the founder, is a
Cincinnati, De¬ director and the senior member
of the organization. Miles Pelikan
Atlanta and Los
and E. H. Davis,
Vice-Presidents,

(Municipal Bonds).

Paul,

troit, St.
Angeles.

John

Nuveen,

entered
field in

ing

Danish-born

the

Chicago in 1898, probably only $1
billion of Public Bonds was out¬

national volume of
only abopt $100
million annually. Only a i'elative
handful of firms, generally small,
were
underwriting Public Bonds
at that time.
Competition in the
modern concept was comparatively
standing and
issues

new

was

the

Nevertheless,

inactive.

either alone

John Nuveen & Co.,

in association with others, sub¬

mitted

offers to

respectively. Edward V. Vallely
is Manager of the Trading De¬
partment and Paul A. ; Hakanien
is General Sales
R.

Sundling

Manager. Walter
Secretary-Treas¬

of the company.

urer

Model, Roland ft Stone
To Admit Partners

com¬

Public Bonds.

Managers of the Underwrit¬
and Research Departments,

are

Hollander,
investment banking

late

the

When

Model, Roland & .Stone,
120
Broadway, New York City, mem¬
bers

of the New

change,
Frank

Nov.

York Stock

will

Ex¬

admit

Thompson to partner¬
ship, and on Dec. I+ Stephen M.
Jaquith and Elliott D. Fox, Jr.
Mr.

Fox, a member of the New
York Stock Exchange, will retire
from

Fox

Co.

Nov.

30.

Mr.

Thompson
will
acquire
a
membership in the New York
Bonds Stock Exchange.

purchase 47% of

the

$7.5 billion of Public
during the last 12 months.
Twenty-two per cent, or $1.6 bil¬

sold

lion, of these were
distributed

and

so
the

all

of more than 19,000 issues
of Public Bonds. The largest issue

parts
of

(Special to The Financial Chronicle)

CHICAGO, 111.—John D. Glas¬
gow,
III, has become affiliated
with Aim, Kane, Rogers & Co.,
39 South

Bonds

Public

revenue-secured

With Aim, Kane, Rogers

investing

distributed

and

purchased

The company has under¬

public.
written

Salle Street.

the last

distributed during

$250 million Ilocky
Goodbody Adds to Staff
Hydro-Electric Project
(Special to The Financial Chronicle)
Utility District No. 1 of
CHICAGO, 111.—James A. Walsh
Chelan County, Washington). This
Jr. has been added to the staff of
was
originated by John Nuveen Goodbody & Co., 1 North La Salle
12 months was

Another

associates.

and

Co.

Street.

large financing developed during

by John Nu¬
Co. and associates was $166

preceding
&

year

Joins

Jack F. Chrysler, member of the

equipment

nenry iv.

\t/'

Wimnrop

.Henry Rogers Winthrop,
ber of-the New York

change, passed away

BOSTON, Mass.—David H. Co¬
joined the staff of Good-

han has

Wall SM-How H

body & Co., 140 Federal Street.

Functioned in 18TB
In

ancient
was

home

found

mem-

Stock Ex-

Nov. 14.

tained caracatures of
well-known

(Special to The Financial Chronicle)

booklet

some

traders

Now With Keller Co.

Long

printed in 1875 explaining the
workings of Wall Street.
It con¬

Jack r. Chrysler

Goodbody Staff

(Special to The Financial Chronicle)

Island there

rrn„v„

own
country we encounter, that
lack and meet it by:the activities
of some of our members in fi-

was

L. L. J. Howe is Chairman

located in Boston,

Clisbee-Thompson & Co.

the

our

partnership,

being the oldest and largest in^
organization in Chester * W. 'J. Lai iig, Presiden t;
the United States dealing...exclur^. Frank C. Carr and George J. Grusively in tax-free Public Bonds her* - Vice-Presidents, John - Nu¬

business,

John Nuveen &
a

vestment banking

veen

Smith & Company, with offices at

do not have the funds to
buy the
construction
or
the
technical
Yet

County, Washington).

1953.

the

Cr\

highways and radiotelephone net- New York Stock
Exchange, passed
works, are lacking because they awav on Nov 7

Petikan

Hydro-Elec¬

tric Project (PUD No. 2 of Grant

OKLAHOMA CITY, O k 1 a . —
Jimmie C. Smith and Edward J.

There, all too frequently,

needed.

Miies

million Priest Rapids

(Public

327

attention.

arpa

Jr.

Reach

It offers wide scope for the
our

principal cities, is celebrating the
60th anniversary of its founding,

and ^ing peace
and plenty to the world In our

by European institu-

operations of

area

can-

n0Ur theu very basis of development,
just off our shores, an autonomous
commonwealth within our union

mank*n<* a^
FJ. '
?ve come to redeem the world by giving it libe % an<~ Justlce'
And he also pointed out that
„e,A 011 : s lssue which unites
?
Americans, muster, not the
£orces
but the forces of
{jumamty* Men s hearts, he said,
.wai* upo,n us' meas l™es hang
ln the balance; men s hopes call

?nc*

can

not

Co., with headquarters in Chicago
in other

and New York and offices

~}er

^tternTof SrtP Sri expanding, balanced
ttere" wiU bfvaX Seeidont 0"

ever

Nuveen,

CHICAGO, 111.—John Nuveen &

everyday business activities we

£ advanta?eou^
there eFther ^

John

Laing

of America. As a great American, pany's total underwritings for its
Woodrow Wilson, said: "America first year of operation amounted to
Is made up of the peoples of the 12 issues with total par value of
world. All the best bloods of the only $155,000.
Now, more than
flow in her veins, all the 1,300 dealers, brokers and banks
are actively engaged in the highly
° d and sacred traditions of people? of every sort throughout the competitive business of underwrit¬
wide world circulate in her veins, ing and/or distributing tax-free

upon

community.

our

one

which

few years

to make it the basis of

tions.

already

industry illustrate
in

have

Europe, the effort to convert the
community into an effective com-

bers of our

ways

will

of the setting up of the European
Economic Community in Western

can

the

solu-

economy.
Substantial
changes in the economic structure
of Europe may be expected in

undertaken successfully by memof

new

because we cannot put off
longer the restoration of the

any

larger role in development.

make

sought

of their

deteriorated

unnecessarily depressed
The lag and the deteriora-

areas.

can

achieve

solutions

New

have

are

tion

Play

th£™any

possible to

intergov-

guarantees

tions.

that
In

Americans

regions

arrangements

world

On the state and

powers.

such

ernmental
it

freedom, that is the mission

credit insurance devices and

new

of the

that

BOSTON,
ston

number

available

these

like to have

with

Kidder, Peabody Adds
(Special to The Financial Chronicle)

limited

BOSTON, Mass.—Mary A. Daley

reproductions

has been added to. the rtaff .of
Kidder/ Peabody & Co;: "75 Federal

there

for

Goul-

connected

day.

reproduced
by Filer, Schmidt & Company
well-known Put and Call Option
and

Mass.—Leo

become

Keller & Co., 31 State Street.

The booklet has been

Dealers

has

those

who

museum

would,

piece.

Street.

Volume

188

Number 5796

The Commercial and Financial Chronicle

(2109)

Continued,

from

25:

page

Rotan Named Pres.

Bank and Insurance Stocks

Of Exch. Firms Assn.

r
v

By ARTHUR B. WALLACE

Bank Services

Week

j
small bank in

small community: know • what
banks
can V do
for
practically ^every¬ them. This raises the question of
body in town. They know .where how they are to he told, and the jo come wheri they Want banking answer is, obviously, advertising:
service; Why Worry aboUtb mar¬ —fin one form or another. This is a
kets?" /But, : ifithat'isthe
Vf....
leaSqh- subject in itself. \
fng, I am gdiftg tb' ask£
"How
much should
my
bank
sure?"
Let's look
little 'deeper.^
spend for advertising?" is a tough

Which

banks

are

community, are
employees as friendly,

tact

courteous
of

'more iathfer

one

customers

cates,, that

about

customers

and

-those

Research Indi¬

competitor?

con¬

20% V of .bank

choose

question to
what

the

answer.

dollars

total

assets.

That

tions.;:;'

find out

the

engage an outside

check

actually

/to

organization to
the' -situation

what

on-

truth

real

isc^.v:^;';""r>

$1,000 per million of deposits. "So,
if,,a bank has $10 million of

Outside Competition

Suppose for a
moment
that
is only one bank in town.
think

you

nopoly,
must

you have a
mo¬
that the public simply

and

bank,

What

without?

that

about

come

loanr associations?

there isn't

in your

one

else

savings
Perhaps

town, but

don't forget that they do business

by mail too.

A savings and loan

association located in Los Angeles

is advertising and soliciting busi¬
in

ness

and
of

New

York, of all places,
it solely on the basis

doing

higher rates.

Statistics show that savings and
loan associations have consistently
i

■

paid higher rates

savings than
since. 1945,
doubt much longer than
on

commercial banks
and

that.

ever

want

cultivate the

savings market, we must pay the
market rate, or at least be within
close range of it.
Research con¬
ducted by the savings and loan
associations themselves shows that

majority

think

their

that

banks

are

reliable, - and would
use
them
except for the low rates
they pay. All the New York City
commercial
banks which accept
savings
deposits
now
pay
3%
against the mutuals' 3y4%, but
rate

market

the commercial banks

cause

branches

vide

the

meets

and thus

be¬

have

day

when

direction?

the

banks

could

passed—for the foreseeable, future
at least. The public which
uses
intermediaries

most

economical

market.

need

You

mailing

jft:*

rate-

mortgage

ourselves

their outstanding

and

loans

have

gone

nearly 700%! Savings deposits in
commercial

banks

doubled in this
better
that

evidence
banks

They

even

period. What

could

have

not

there

been

losing

in the "savings market"?

ground
And

have

same

what

are

and loan

not

about
so

credit unions?

obvious

savings

associations, but they've

been

growing even faster. Per¬
haps because they don't advertise
and

don't

you are

exist.

maintain fancy

not even

But

the

outstanding
credit

aware

fact

installment

unions

offices,

that they

remains

have

that

loans

increased

2,500% — you heard it right —
2,500% since 1945. This represents
loan

business

which

might

have

to the banks—or at least a
substantial part of it might. J; ;

gone

;

Importance of. Advertising:

Earlier

that

many

referred

to; the
individuals
do

,v./

1954

4.00

the

price learnings

ratios

1957

468.0

13.1

Agricultural

Bankers &

Shippers

27.9

20.3

7.72

Falls

100.8

8.70

11.09

and

director

Presidents

elected

the

Alfred Rhett du

are:

Fraiicis I. du Pont & Co.,
York; McKee Nunnal 1 y,
Courts & Co., Atlanta; Albert C.
Purkiss, Walston & Co., Inc., New
York; E. Warren Willard, Boettcher and Company, Denver; Cole¬
man
Wortham, Jr., Davenport &
..Co., Richmond.',• /
:
Pont,

0.99

—

Kraus,

Foster, Pershing & Co., New York;

7.59
-

—

Burge, Ball, Burge &
Cleveland;
David ScOtt

James A.

6.77
8.43

—

body

Hetherington,Co.,

4.39

5.31

Hornblower,

47.2

15.6

2.12

6.42

Weeks,

24.4

23.1

4.11

20.1

21.5

5.00

9.99

River

11.3

10.90

8.83

4.14

8.08

Henry

Mc¬

Pierce,

Lynch,

Fenner & Smith,

12.4

New York; Jay

Co., Chicago.

21.7

14.4

4.60

6.96

12.8

—

Michael

Merrill

Carthy,

|I, Good-

York*

Hornblower

Boston;

9.2

Insurance

New
II,

24.2

Hampshire

12.0

7.79

8.32

Insurance

Providence

4.34

4.68

10.0

—

John D. Baker,

were:

Reynolds & Co., New York;

John

6.61

'mm '

11.8

—

Re-elected

; Jr.,

4.93

14.8

Pacific Insurance

17.7

—

5.67

—

Whipple,

Elected

Whipple

Bacon,

the Nominating Com¬

mittee for 1959: T. Jerrold Bryce,

Clark, Dodge & Co., New York;

Washington

Reliance Insurance

9.5

—-

St. Paul Fire

10.56

21.7

43.3

Security Insurance
Springfield

bank

Braqd

succeeds

: John

and

Governors
of 35

Home Insurance

them

America

Rotan

Baker, Jr.,; Reynolds & Co.," New
York, Treasurer.
/.
>

18.9

Phoenix

the

stment

Lewis, partner in Estabrook & Co., New York. >
:
James
A.
Hetherington, H*

22.9

North

Robert J.

Hartford Fire

New

Texas

River

Mills.' Mr.

Rice

the

nv e

3.94

3.59
■'

■„

13.2

Hanover Insurance

Northern

for¬

Chairman

Group
:

4.68

15.1

Great American

customers into the bank. But

8.61
11.76

■■

25.9

Fireman's Fund

opportunity
to
exercise
their
powers of persuasion in bringing

efforts.

_i_-

.9.0

Fidelity Phenix

a
market is through
employees. While not
employees are tempera¬
mentally qualified to act as sales¬
men, many of them welcome the

extra

$7.68

21.4

Federal Insurance

own

their

Ten Years

$0.21

11.5

13.0

Continental Insurance

bank

compensate

investment

1957

8.5,

Boston Insurance

cultivate

of
Edward Rot an

New

$100 Invested
(Sept. 81, 1958 Price)

11.6

American Insurance

Glens

also

mer

Board

Earns, per

Ten Years
No. Times

Union

forget

Exchange/ He
1 is

1.75

$100

Pricfc:Eariiings Ratio

Fire

don't

the

No. Times

Insurance Co. of No. America

new

York •' Stock.

New

National

one's

and

;

4.33

is ;a

former gover¬
of the New

nor

Vice
,

3.49

____

since

and

Goodbody & Co., New York and
D.
Burge, Ball, Burge &
Kraus, Cleveland, were elected

5.00%

1957

mera-

John

5.50

1956
■

National

1955

0.24

of the most effective ways

all

particularly in New

1953

3.08

of- the

Bankers: Association

9.51

Aetna Insurahce

buy a
your tele¬

2.30

14.8

—

-z

4.61

John

Blunt,

Simmons,

3rd,

Blunt

Chicago;

Ellis

James

6.77

—

9.5

10.51

Lee,

Hutton

Co.,

New

employees can earn extra com¬
pensation for bringing in new
business, a surprisingly large pro¬

26.3

15.7

3.80

6.38

York; Leonard D. Newborg, Hall-

Westchester

23.4

13.7

4.28

7.32

garten & Co., New York; Joseph

Casualty Companies-—
Aetna Casualty

18.6

9.2

5.37

10.83

American

10.5

21.8

9.55

4.59

United

this extra-curricular activity. And,
if our experience is a guide, most
of the accounts

stay

And

everywhere

have

markets

for

fact

losing their proportionate share of

nation, but it's not too late to do
something
about
it.
Wherever
have

actively
cultivated
new
markets, the results have
been most satisfactory. The num¬
ber of people who need banking
service is increasing all the time,
at a rate faster than the growth
of total population because per¬
sonal incomes are rising. Banks
cannot hope to compete for the
public's savings unless their rates
are

competitive, but whenever the

rates

become

their

sometimes

so,

the

banks

market

the

get

more.

not

markets

yet

for

our

services

will

2.92

3.56

13.3

8.91

7.49

10.0

14.2

9.98

7.07

Seaboard

10.3
73.6

14.9

9.66
1.36

8.19

entail

U. S.

Fidelity & Guaranty—

times

at 468

1957

14 cents

mere

share.

low figure for

spaces

opposite the

the basis of

operated at

fire insurance stock.

company names

loss in 1957.

insurance company

use

basis, preferably 10
this

are

London Branches

a reason¬

Of course the blank

Bankers

all

or more

The

Branches In:

aden, somaliland protectorate,
northern and southern RHODESIA.

figures,

for the

smooths out the hills

statistic

com¬

J. P.

rated

norm.

of years,

and valleys and gives

already

Morgan

Company, Inc.
Bulletin

Available

■

brought out,

the investor

useful

Laird, Bissell & Meeds

which to base his calculations.

the Earnings

condition.

Here

additional

Sept. 30 price gives

per

$100 Invested column we see the

Members New York Stock Exchange

same

;

Members American Stock

investment of $100 in Aetna Insurance at the

earnings figure of only 21 cents. Obviously,

this is out of gear because

of the bad 1957 underwriting result.

Exchange

YORK 5, N. I
Telephone: BArclay 7-3500
•,
BeU Teletype—NY 1-1248-40 *
(L. A. Gibbs, Manager Trading Dept.)
Specialist a in Bank Stocks

120 BROADWAY, NEW

not

our

changing, dynamic world.

but probably the wisdom of

present the long term ratios we get reasonable

longer term

statistics only on a long range

companies, resulting in price earnings ratios that were entirely
But when

the Government In: aden,
kinta,

be surfeited with the continued

years;

out of line with what could be

wdia, pakistan, ceylon, burma, KENYA,
tanganyika, zanzibar, uganda.

1957 was a bad one in underwriting for almost

year

STREET, S.W. 1

uganda, zanzibar a somal1land protectorate

the result of their having

suggestion is nowhere better brought out than in this

parison.

BISHOPSGATE, LONDON, E.CJ

54 PARLIAMENT

And, to, where losses occur there must

The readers of this space may

AND

LIMITED

13 ST. JAMES'S SQUARE, S.W.I

10-year earnings

necessarily be blanks in the ratios that result.

advice to

BANK

Amalgamating National Bank of India Ltd,
and Grindlays Bank Ltd,

selling (on Sept. 30 last)

showing the price: earnings ratio is down to 13.1 times,

ably

&
■

to the bank, but this is
banking's price of leadership in
expense

But

Deane

OVERSEAS

GRINDLAYS

earnings is the result of its earnings figure of

Singer,

Head Office:

A distortion such as Aetna Insurance

NATIONAL

6.70

12.2

Surety

Scribner,

Scribner, Pittsburgh.

3.70

28.0

are

real and growing. Of course, their

cultivation

27.0

34.2
11.2

and

Many individ¬
know all the
things a bank can do for them,
and they must be informed. Thus
uals

Re-Insurance

Massachusetts Bond

Banks

the total financial business of the

banks

Casualty
Fidelity & Deposit

summarize:

now

Fire

Continental

the books.

States

American Surety

they bring in will

various reasons, commercial banks
have
been
slowly but steadily

500%

have seen,

list—just use
phone directory—for if a person
can
afford
a
telephone, he's a
potential customer of a bank.
One

/ /•

•

L 4.99%

Companies—

not

total savings held by savings and
loan associations have increased
over

•f '.<•

Fire

for

that it isn't. Since the end of 1945

not kid

jv;*V?.'v

Now

their services which have not yet
been thoroughly cultivated.
For

conscious—let's

■'>.;■

material:

reaching the people who comprise
its

course,

Ratio of Underwriting Profit to Earned Premiums

bank

channel

is, of

use,

underwriting results were
they could be considered medial.

rate increases than

generous

York State.

mails still offer the smaller

can

The following are the
industry's stock company profit (or loss)
margins for the ten years through 1957. While they have not had
five years of losses, those loss
years that they have had registered
bad losses, and may be said to
tip the balance in favor of more

Not very

far, It would
scarcely a "drop in the bucket."
So, what is the $10 million bank
to do? Although it may be limited
to direct mail, window and lobby
displays, local newspaper adver¬
tising, and personal contacts, these
advertising media if intelligently
used, can be quite effective. The

portion of them will work hard in

the

retain savings deposits with a rate
of 1%
or
1^2%
seems
to have

financial

underwriting results.,

A big city bank can use tele¬
vision,
radio
and
metropolitan
newspapers.
Some of them use
national news magazines for in¬
stitutional advertising.
But how
far
would
$10,000 go in
that

has

Board

in which

years

ber

several

been

increases. Normally, these authorities operate on a basis of about
five years, and the companies have had ho such
period of red ink

the savings and loan

range of

1955
one

Mr.

e r n o r s.

Indeed, this decade contained enough quite favorable under¬
writing years to cause the supervisory authorities to balk at rate

pro¬

;

Rate-Conscious Public
The

includes

budget

Board of Gov-

t •.MT;.""r r"V«

excellent and others in which

associations.

for

can

convenience

greater

depositor.

ing

customers
safer-and

this

especially poor showing for most of the com¬
However, utilization of the ten-year term is entirely fair

would put the bank within strik¬

there
Do

kind

deposits, an advertising budge.t of
$10,000 would - not be excessive.
least' that

meeting of th®

we now use

1957, the most recent

that makes

panies.

to be less than one-third of

pens

At
„

The year
one

/"./

annual

1957 earnings and those for the decade to Dec.
31, 1957.
Prices as of the last
quarter-date, Sept. 30, are used in both tabula¬

hap¬

bank—or

their

weeks,

the

in recent

1945802

basis of

actually

did spend for advertising in 1956,
and the answer is $380 per million

what the average savings and loan
change it — because of thev way association
spend
per
million
they are treated by, tellers, guards, dollars of its
assets, which was
platform Officers,V• etc.v rVlsn'U/it $1,300. When you come to the
simply human nature for .-one to question: of how much should have
display "company manners'' .when been
spent, one rule of thumb for
the boss is looking?- The,
ohiy/way small and medium-sized banks is

tion of Stock Exchange Firms at

of fire-casualty insurance stocks that

same group

exhibits of the price:
earnings ratios for the year 1957 and also for the ten years ended
with Dec.
31,1957; and, secondly the amouht of earnings that may¬
be bought with a
$100 investment in the various stocks, also on the

tell you

can

bank

average

.Using the

have worked

If there

Insurance Stocks

—

-•

in Rotan,

Mosle & Co.,. Houston, Texas, was
elected President of the Associa¬

knows

Edward Rotan, partner

But

$7.68 for

10-year average is

reasonable figure.

The Commercial and Financial Chronicle
26

groundless.

supposed that both more leisure and more goods can
only the union organization is strong enough to
force such a program upon management.
Of course, Mr. Khrushchev will probably presently
face

particularly Russia.

nations,

Proper Perspective

advised, however, to keep all these

We should be well

things in their proper perspective. To do so we should
need daily to remind ourselves of the fact that many
thousands of words of utter nonsense are being poured out
upon a

bewildered public both here and abroad. Let us

remember, first of all, that there is no particular point in
a mere battle of figures and statistics. Apart from the mili¬

is to produce and distribute goods
people want. Comparisons of two
economies by use of such measures as the gross national
product — or the over-all market value of all goods and
services produced in each—is, if not meaningless, certainly
capable of grossly misleading the public. Even tons (or
bushels) of wheat, tons of pig iron or steel, and so forth
may or may not mean what they appear to mean. Even
the plane of living <now usually miscalled standard of liv¬
ing) -does not offer a foolproof measure of economic well
being which, after all, is the goal of any economic system.
It is, of course, true that we naturally wish to ad¬
vance as rapidly
as may be in attaining economic and
social objectives — regardless of what Russia does — and
we are

to do so certain facts must be

and faced

recognized

truth

such. First of all, if we are to attain the

utmost in the

acquirement of the goods things of life for
an end to wasting so much of our

ourselves, wo much put

energies in producing things no one wants.
tragic—example of this
of waste in this country at this time is found in the

time and

our

The classic—we had almost said
sort

regular annual production of farm products far in excess
of what the market will absorb—and the support of those
who
the

produce these unwanted goods by taxing the rest of
community.
There

is, however, much other waste of this same

variety. It would* be interesting, and probably quite
appalling, to know how many manhours are devoted each
year to needless and really burdensome regulation of our¬
selves. The securities laws, and many of the other New
Deal

measures

with the vast

which

seem

have

majority of politicians,

become

sacrosanct

all distressing

are

in point. The waste in many governmental projects,

cases

direct

of subsidies and guarantees, is enor¬
mous. The armies of men and women
required to keep the
records of many of these schemes and programs are to be
put down as in the last analysis unproductively employed.
The same is true of the administration of extremely com¬
plicated tax systems devised for the purpose of "soaking
or

means

the rich."

our

full

productive potential is the removal of programs which
kill incentive in so many cases. One of the
greatest of
these is, of course, the tax structure under which we now
operate, a system which takes practically all the income of
those who
was

productive in the

are

common

years

ago.

way

and

estimates

Still another need is

An income tax schedule

full about-face in

our

attitude

production—or at least in the attitude of an all
too large proportion of the
people of the country. There
is too great a disposition
today to try to get something for
nothing, or at the very least get more and more for less
and less. This is

particularly true of workmen organized
large unions and led by labor politicians. There is
entirely too little realization that wages and other forms
into

duced

limited by the volume of output pro¬

are

by the wage

to be as much concerned

the volume of

Really the wage earner ought
with efficiency of production and

earner.

output

is management. Such, however,

is far from the fact.

possible for many to choose less work—that is shorter
and shorter
working hours—to more goods. That is to say,
they can and sometimes do regard leisure as a good and

find it worth

than what

tune devoted to it. All too

current

might be produced in the
often, however, it appears to

in."

revised

and

Notice the

"allowed

future

Recessionary Price Rise

In the past 12 months, a period
first of sharply declining business

activity and, later, the recent par¬
tial recovery, prices continued to
rise. One of the principal reasons
such

for

increase

the

contracts

wage

new

labor

was

granted under

automatically under
negotiated in previous
The impact of such longor

contracts
years.

term contracts

Yale

be sizable.

can

Dr.

Brozen, University of Chi¬
economist, estimates ".

cago

that

million

4.5

workers

will

re¬

ceive such wage increases in 1958;
and many of them ... in indus¬

tries which at the time

ing
as

were

fac¬

unemployment—such

severe

steel and railroads."
The Federal Reserve's

last

its

reversal,
tight money

order

increase

autumn,

policy

amount

another

important factor

credit

the

available

was

sup¬

porting prices. The impact of their
various
operations can
best, be
measured
and

loan

the

change

investment

the commercial

reserve

member

System's

the

end

the
of

banks and by the

change in the free
From

accounts

the

of the phrase

use

position
banks.

November, 1957

the end of July, 1958, the loan
and investment portfolios of com¬
mercial banks increased
by, $10
to

billion; during the same eight
months, member banks' free re¬
serves
(i.e., their excess reserves
less borrowings) grew by almost a
billion dollars

and

changed from

the process

net debt position

status of substantial surplus.
While
the factors
above-enu¬
a

of special import in

were

explaining price

changes

in spe¬

authorizes

permitting the currency to depre¬
ciate, the other objectives of the
Employment Act are imperiled. If
a proper and sustainable economic
growth is to be attained, no single
one of the
triumvirate of objec¬
tives can be ignored or given less
favored treatment.
*

The

second

ing to give

factors

inflationary bias in

■recent years is our entire political
and economic environment.4 It is
environment ' which

indeed

encourages,

increases in

wage

permits,
labor to seek

excess

inflationary bias to our
throughout
the
entire
period.
./

increases

absorption

public

business -of ,,-wage

added costs and their

transference

the

form

the

figured importantly in the

recent

boom
can
hardly, at the,
present time, be made any easier.;

Further

impact along these lines

is„ bound to be much less in the;
future' than
in the past.
Both
widespread'industry cost - cutting
and

large

scale business' expen¬

are

important

very

associated

its

record

peace-time

Federal deficit. As you know,

cial

Budget

offi-

Estimates

Bureau

place that deficit at slightlyl over
$12 billion.
«*-,
Because

of present bond -mar¬
conditions, current expecta¬
tions seem to be that the bulk of

ket'

that

be'-financed

will

deficit

has

To the extent jhat;such

financing

Treasury

with the savings

done^

not

of non-hank in¬

vestors, but with borrowings from
the commercial

banks, to that

ex¬

tent inflation will be encouraged.
Evaluates

•

.-v.

the

wards

inflationary pressures

that may develop.

can

evaluate

hypothesis of the inevitability
inflation?

the clamor for tax cuts has
disappeared—despite earnest pre¬

omy,

dictions

made

winter, by
that

sons

are

pact.

the

use

term

"inter¬

submitted that

do not carry

the same im¬
obvious1 example,

For

ery,

practicable

promote maximum

rent
of

raise

will

underway/

now

These

comes.

increase

will

automatically

contributions

tax

the

Treasury and thereby reduce the
Federal deficit for fiscal 1959 by
a

billions

few

tary

Treasury

dollars.

not

that the
only replenish

but

will

ernment
areas..

Secre¬

said
will

Anderson

recently

recovery
our

revenues

help us to reduce
expenditures
in

gov¬
some

■

Rates

Increased

not

now

face

demands

much

less

for

such

size

and

for

Treasury

Issues

■

>
■■

Results of the Sept. 25 Treasury

financing program were, in some
important
respeets, encouraging
and augur

well for the future. Be¬
realistic

cause

bank

subscribers

pricing, nonfigured
more
importantly than expected. Their
combined subscription was $2 bil¬
lion or about 24% of the total
offering—an Unusually large per-t
for

such

short-term

is¬

Here then is evidence, that

satisfactory rate will increase
substantially non-bank purchases
Treasury securities and reduce
the inflationary potential inherent
in
financing the Federal deficit
through: the commercial banks.
a

In the

light of these considera¬

the average price increase
in the years immediately ahead is
not likely to differ -significantly
from tbe 1.5% per year
recorded

that

since

within

enormous

work

1952.

the

fiscal

items

are

intensity.

experience

must

say

frame¬

present

responsibility and

political-economic conditions such
an

price

average

rise

quite

possible.
But

•

even

are

condoned

tinue.

Forces

rise is

all

w$re

corporate profits and personal in¬

inevitablity

use

cuts

tax

forthcoming quickly and in siz¬
able amounts, the economy would
rapidly "go to the bow-wows."
Well, the economy didn't "go to
pot" and instead is displaying re¬
newed vigor. The business recov¬

Government to
...

spring and
prominent per¬

unless

pretation" advisedly because the pent-up postwar demand for hous¬
wording in the Act states clearly ing, automobiles and other con¬
These
past
that, "It is the continuing policy sumer durables.
and responsibility of the Federal demands have been satisfied. Cur¬
means

last

many

ent

-With the upswing in the econ¬

tions

.Now, in the light of these cir¬

cumstances, how

employment and production
to be given priority over price

its

icy of "comfortable restraint" to¬

of Inevitable

Theory

Inflation

mum

Federal'

abandoned

now

"easy money" policy and is more
watchfully concerned with a pol¬

sues.

productivity,

enhance

Furthermore, the

securities.

inflationary bias certain of the important infla¬
resulting from interpretation of tionary pressures and conditions
the Employment Act of
1946 to that have existed in the-immedi¬
mean that policies
favoring maxi¬ ate past either do not exist at pres¬

ahead.
Reserve

rentage

increase

goods and services the consumer
will demand, as recovery moves

the sale of short-term ^government

the

and

inflationary
force
is the new
peace-time high Federal spending
program for fiscal year 1959 and

economy

Other Inflationary Pressures
First

consumer

easy

Finally, another

the
.

consuming
of higher

prices.
•v

postwar

of pro¬

ductivity gains. It is. an environ¬
which
acquiesces in ' the

ment

War II,

imparting

were

factor, tend¬

major

•

cific periods since World

other

in."- There

creep

the. govern¬
ment to subordinate the objective
of maintaining price stability to
the objective of maintaining "full"
or
"maximum employment."
By
quires

creep

not

permitted to con¬

that bring it

"man made and

trollable."

need

are

about

man-con¬

The acceptance of the

■

of a continued price
acknowledgment of

economic determinism but merely

employment, production and pur¬ The huge reserve of buying power
chasing power."
This
statutory built-up during the war has been
language certainly implies that the greatly reduced. Our. tremendous

to control it has disappeared.

maintenance

and

maximum

pur¬

output of goods and services dur¬

chasing power (i.e., price stabil¬ ing recent years has seen to that.
ity) is equal and coordinate in The capacity presently available
status

with

maximum
duction.
Dr.

Them is also the question of
choosing between more
goods and more leisure. We have reached a stage when it

which

appreci¬
ably the economy's afoilitv to sup¬
ply ;In ^increasing amdunts the

nothing in the Act itself that re¬

stability.
a

toward

of remuneration

their

demand.

increases

period since
credit

The

months

the scale that

steeply graduated as that we now suffer under can be con¬
sidered rational only if our purpose is to condemn those
with large income to the eternal task of
paying for the ex¬
travagance of almost all types of governmental units from
Washington down to the smallest hamlet in the land.
,

fulfill

merated

realize

page

Costs Less Than Farther Inflation

Another Essential
we are to

from

Price Paid to Avoid Inflation

change if

consider the

1952.

sharply

capacity

place

modernizing plant and
equipment have helped jn recent,

Continued

Another essential

case

ditures

tary aspects of the situation—to which we shall not ad¬
dress ourselves at this time—the whole point and purpose
of any economic system
and services which the

some

is the

Let

of these

problems in a degree far greater than
today in a country where one must now wprk
long hours and do what he is told, if he is to have even
enough to get along on. The Russian boss is already talk¬
ing about shorter hours of work—probably more shrewd
politics. But as goods get more abundant in his land, >if
they do, the situation may well change. But, however that'
may be, let's get our own house in order.
v

rule the communist

conquering complex which seems to

suggest that

be had if

[As We See It

There

nothing to
high de¬
gree of probability on such a rise
occurring. It will not occur unless
war comes again.
'
"

Continued from first page

Thursday, November 20, 1958

...

(2110)

the

other

employment

goals
and

of to

pro¬

increased

demand

This is true, not

only in terms of idle plant and
Nourse, former equipment, but also in terms of
Council of Economic idle manpower and idle natural

Edwin

Chairman,
Advisers, under the Truman Ad¬
ministration, has publicly voiced
the same viewpoint.
He recently

stated that "The greatest threat to

the

meet

also substantial.

accomplishments

jectives of the

the

ob¬

Employment Act
is to be found in the inflationary
bias that we have allowed to creep

political judgment that'the will
We

are

all

against

'Continued

persistent price rises. We dis¬
like their effect in discouraging
thrift and in penalizing holders of
savings deposits and life insurance
policies.
We dislike the way mi
wihch

they create inequities by
arbitrarily redistributing income
we
dislike the incalculable

and

"
personal • hardship
for
millions
specific inflationary who are living on pension rights,
pressures now removed or dam¬ fixed incomes or savings of any
pened considerably," sharp price kind. ■*"...
rises of, say, 4%. or 5% or more
Sounds for Call for Action
per year are most improbable. If
Now is the time to face up to
people fear a severe inflation of
this
degree,
their
fears
are the very essence of our democracy
resources.

With these

Volume

188

Number 5796

and to show the world that

have

the

courage

wisely; that

selves

proper

sense

ready

govern

The Commercial and Financial Chronicle

do have

the mutual savings banks, and the
other thrift institutions which

our¬

responsible

values, and

needs

shall give up
more

safekeeping

to make other needs
that we do possess
reasoning
powers
and

formulating th^t policy.

capable
the

wit

think

prob¬

our

tion; and that

do have the self-

discipline, ability, and

courage

by our values and see
policies
through
whatever

which such

upon

They

our

the

are:

v-.'

•••'

■

flation;

have the will, the

wit and the

nomic

tond

country,
creased

and

deficit is

sets

the

climate

since

discipline to fight in¬

the harbinger of an

(5)

in¬

within their power
and
of them know it. Congress¬
man James Byrnes of
Wisconsin,
for example, told his fellow legis¬
lators not so long ago, "The situa¬
many

are

facing today and the

of it is no secret.

A major¬
ity of the Congress has gone wild
in authorizing and appropriating
for new and increased expendi¬
tures.
It is going to do you no

good

blame

the

Executive

else./The Executive

anyone

Representative Clarence Cannon

Missouri, Chairman, Hou-e Ap¬
propriations Committee, also in
same vein told his colleagues,
"When you go home at the close
.of this; session and your people
/complain about the high cost-ofliving do not pass the buck. .Tell
the

Tell them the

standing

was

$18 billion,

many

this industry assumed that invest¬

capacity might top out at $5
per
year
and a total of
$50 billion, he said.
Currently,
approximately
$55

billion

to raise prices."

billion

statements

place respon¬
sibility squarely where it belongs
.—with the Congress of the United
,States.
It is high time that we
fencing with

windmills

attention

our

rities

and
the

ment.

active

affairs

tremendous

volume

the

...

Holgar

our

Johnson,

President, of the Institute of Life
Insurance,
,formulate
.inflation."

stated
recently
"to
national policy against
It

certainly

interested in stemming in¬

flation, whether it be the gallop-'
.ing, moderate, or creeping-variety.
And the life insurance

companies,

industry

the

can

expect to

ever-broadening
and

investment

potential

serve

demand

investors recognize
and

high

,time that this is done.
Such a
policy could well be. the focal
'point for the converging of all

all

can

inflation

the

for

what

tion"—then, and only then, shall
have laid the groundwork for

anti

inflation

cam¬

paign.

Municipal Bonds

ticipated.
been

The growth record has

follows:

Revenues

(Millions)

Year

Earnings*

1958 Est.

$11.0

$1.50

was formerly a
subsidiary in the
Engineers Public Service System

1957

10.2

;i.37

1956

9.0

1.36

but in 1945

1955

8.1

1.13

in -1954

7.3

1.18

,6.8

0.92

terest

company

Engineers sold its in¬

the

Donner

Estates

Philadelphia and affiliated inter¬
The

Donner

interests

1953

own

.1952

stock

1951

5.8

represented on the board .1950
by four directors. Stone & Web¬

5.2

nearly 50% of the

against infla¬
tion, and finally, if we can all
recognize "the price paid to avoid
any inflation is much less than the
price exacted by further infla¬

successful

The

and

whole

Savannah.

even

hedge

are

is—a

recognize

for

community

there

free

common

6.2

are

ster

Service

Corp. has

service

Adjusted

3-for-l

for

2-for-l

in 1953.

0.67

0.57
0.63

split in

1957

and

contract with Savannah Electric.

Savannah Electric's

The city of Savannah is an im¬
portant export-import center and
is served by five railroads and

three airlines.
in

the

area

and 4% miscellaneous.

Industrial activities

diversified,
including naval stores, cotton seed
products, sugar, woodpulp, kraft

sales

and

board,
paper
bags,
products, asphalt roofing,
lumber, chemical products, fer¬

paper

The

aver¬

residential rate in 1957 was
only 2.40c compared with the U. S.
average of 2.56c; residential kw
age

well

are

revenues are

approximately
44%
residential,
32% commercial, 20% industrial

averaged

3,611,

14%

above

the U. S. average.

gypsum

The

company

placed

the

Port

Wentworth Power Station in oper¬
ation this year, with a

and metal

products. Ship
repairing and related enterprises
are also of importance.
The State of Georgia has been
enjoying an industrial renaissance

capability

50,000 kw; while coal is to be

the

basic

burn

provided

speculative
by

Public

Bonds," he declared.
-

and

since

taxable securities.

1928 when the top corporate
income tax was 12%, a tax-free

of 3.4%

Industrial

credit

and the beginning of real
earning-power from a new unit is

characteristic

well-known

securi¬

.must earn 10.5% per annum from
taxable securities merely to equal

4% per annum from tax-free Pub¬
lic Bonds.

underwriting

That Public Bond

has been growing at a much faster
rate than other phases of the in¬

the

best business

cities last year,

Rand-McNally

"Business

Trend" list (for the fourth year in
a

ranked

row

among

the

ten

Form Progressive Investors
Progressive Investors has been
formed
End

with offices

Avenue,

to engage

Under the city's program Officers

best).

are

890

West

York City,
securities business.
New

Paul

Elfenbein, Presi¬

for urban renewal, U. S. Housing dent;
Sheldon Evans, Secretary
banking business can be
Funds of $4,752,000 have been ear¬ and Treasurer; and C. Elfenbein,
seen in the following figures sub¬
Vice-President.
marked to clear areas
of sub¬
mitted by Mr. Laing.
vestment

(

Annual avg. in billions
1921-

1954-

1929

1957'

Xncr.

$2.7
1.9

$7.7
2.3

184
24

1.4

6.3

360

Corporation Bondf;,l._l
Corporation "equities"
Tax-Free

Public Bonds

standard

Gross

Nat'l Product

Population

88.0
:

0.115

405.0

0.166

.360
43

which will

housing,

with

replaced
buildings,

new

residential

SOUTH MIAMI, Fla. —Income
Planning Associates, Inc., has been
formed with offices at 5830 South¬
west

Seventy-Third

engage

are

Street,
to
securities business.
Harold J. Jenkins,

Hickerson, Jr., With

and

Peters, Writer, Christencen

development has made

DENVER, Colo.—Allan R. Hick¬

recreational

areas

(Special to The Financial Chronicle)
area

Savannah

Electric

one

the

"rapid growth" utilities. Revenues

Income Planning Assoc.

A. R.

parks.
This

Officers

II.

War

equal to only

was

return from taxable

3.9%

President; Cenie S. Ogden, VicePresident;
and, V.
C. Jenkins,
interest
rates,
Mr.
Laing sug¬
Secretary and Treasurer. Mr. Jen¬
gested that, while Federal fiscal kins was
formerly with Waddell
policy was the prime mover, the & Reed, Inc.

Regarding the future trend

World

companies which have completed
important new plants in Savannah

or
are
currently constructing
them, include American Cyanamid, utility earnings.
Savannah Electric has been
Southern
Nitrogen,
Johns-Manties.
Nowadays, with a top rate
quoted recently in the over-theof
52%, a bank or corporation ville, Ruberoid, Bestwall Gypsum, counter market around 29.
Paying
must earn 7.1% from taxable se¬ Union
Bag, etc. Savannah has led $1 and earning about $1.50, the
curities merely to equal 3.4% from
all cities in Georgia of comparable yield at that price would be 3.5%
tax-free Public Bonds. Also now¬
size in industrial growth in recent and the price-earnings ratio 19.4.
adays/ an individual with only
$26,000
yearly
taxable
income years; and it ranked third among

yield

combination of high Fed¬
a plenti¬
ful supply of sound quality bonds
yielding 4% and more, Mr. Laing
stated.- "We see no significant up¬
coming shifts in those factors, so
eral income tax rates and

legislative activities and
'second by offering them vigorous
'support for strong public policies

dollar.

sound and

Savannah Electric & Power sup¬

plies electricity to an area in
southeastern Georgia with a popu¬
lation of 180,000, of whom 153,000

ests.

upon a

to-day

forces

tors

tax-free securities has been based

understand fully the infla¬
tionary implications of their day-

need

maintaining

inter¬

are

symptom of failure — failure on
our part to govern ourselves wise¬
ly, if we can all recognize that

institutional and individual inves¬

,men

larger and

costly public improvements points
the way. to the existence of at
least $100 billion of these securi¬
ties by 1968."
•
The
continued
absorption by

union

in the business and financial
community to attack the problem
of inflation at its source first by
-making certain that all Congress-

] dollar.

The Nuveen spokesman

mand for better,

of govern¬

integrity of

secu¬

said, "a rapidly increasing
population and its continuing de¬

the

investment

also

It is high time for those of

preserve

these

are

he noted.

.bankers and insurance executives
as

outstanding, most being
owned by banks, insurance com¬
panies, and inaividuals to whom
tax-free
income
and - safety
of
capital are of major importance,

political scene where the malig¬
nancy of inflation originates. It is
-high time for business leaders,
ito be equally
.leaders in the

*:V

and total par

na¬

yoii voted to depreciate the

concentrate

who

flew of tax-free securities is depicted by
head of John Nuveen & Co. who envisages $1$ billion of such
new issues
by 1968 compared tp current annual underwriting
of $8 billion and $3 billion only 10 years ago. Mr. Laing calls

ment

stop

mild

some

These

admirably

The expectant greater

the dollar lias gone down and the
cost of groceries has gone up be¬

dollar and, voted

"v \

•

tional debt is higher because you
voted to make it higher. Tell them

cause

..V

them the facts.

'..(I

ap¬

S *■!

can*-

does not authorize and

gress

not spend one cent that this Con¬

propriate."

■''

fuel it is designed to
coal, oil or natural gas. The
recent years.
Northern ports, company has been buying a small
such as Boston and New York, amount of power from Georgia
have been losing ground to the Power, under a contract which
southern ports — Charleston, Sa¬ expires next June. Peak load has
increased every year of the past
vannah,
Jacksonville,
etc.
The
V attention to attractive yield differentials between municipals and
value of water-borne commerce decade and last year amounted, to
taxable securities, and attractiveness of existing tax free yield,
moving through southern ports in¬ 116,000 kwh. The new unit will
creased from $2.3 billion in 1946 increase
compared to period 1909 to 1958 for Jan. 2.
generating capacity by
to $5.9 billion in 1957, a gain of some 40%, affording ample margin
The current annual volume of current
index
of
Public
Bonds
Also much new industry over peak load.
156%.
about $8 billion of tax-free Public yields (about 3.35%) was almost
However, completion of the new
has come into Georgia and ad¬
Bonds (Mujnicipal Bonds)
is exactly "on" the average of 3.4% jacent states, attracted
unit has substantially reduced the
by
the
merely the forerunner of bigger for Jan. 2,-1909 to 1958, inclusive. lower
credit for interest charged to conwage rates, the absence of
things to come, in the opinion of
and
good
year-round struction.. Together with a tax
Compares Yield of Tax-Free and strikes
Chester
W. Laing, President of
adjustment resulting from a recent
weather.
Taxable Issues
John Nuveen & Co., the oldest and
W. H. McGowan, Executive Sec¬ Treasury ruling on payroll taxes,
He commented that there ap¬
largest organization in the United
retary of the Savannah District this has.had a temporarily adverse
States underwriting and distrib¬ peared to be no probability of any
Port Authority,
says
"Savannah effect on the trend of monthly net
market relaxation in tax rates if
uting these investment securities
attracts companies whose raw ma¬ earnings. In August, for example,
any effort was to be made to min¬
exclusively. :
' terial is imported or whose prod¬ net income showed a gain of 22%
imize
the
inflationary
trend.
Mr. Laing asserted that an an¬
ucts are shipped out by water." over last year while September
Rather, he said, it is probably that
nual volume of some $15 billion
Southern ports are spending $300 showed a decline of 30%. While
each year more people would feel
Of new-money Public Bonds by
was
reported for the 12
million to improve their facilities; $1.58
the tax bite to a greater extent.
1968 could be/accepted as a rea¬
Savannan had to refuse entrance months ended August, the Septem¬
He predicted a greater investor
sonable estimate of future activity
to 117 ships last year because of ber report was $1.53, and $1.50 is
awareness
of the availability of
in the tax-free segment of the in¬
estimated for calendar year.
In
a shortage of dock facilities.
tax-exempt income, which not on¬
vestment banking industry.
A
survey
last year indicated 1959, however, it is expected that
ly would provide a larger market
Only ten years ago when newthat Georgia ranked fourth in the the big new unit should contribute
for tax-exempt Public Bonds, but
issue volume of Public Bonds was
U. S. (after California, Ohio and effectively to earnings, resulting
could also result in a greater dif¬
in a renewed uptrend. The lag be¬
running, at the rate of $3 billion
ferential in yields between tax- Texas) in securing new industries
tween
the
loss
of
the
interest
annually
value out¬
-

■*, Responsibility
rests
squarely
with the Congress. Inflation con¬

ested in

Growth and Attractiveness of

Responsibility Rests With
Congress and Business

■

the

best

can

Savannah Electric & Power Company

tilizers

with the level dictated by Federal

tion

.; ■

respect for

dollar

(a) By"a demonstration of fis¬

level.; Federal expenditures must
be brought into an early balance

cause

the

encouraged:

supply and later
inflationary pressure, the crux of
the anti-inflation fight must be
waged first at the governrment

trol

That such

value

money

receipts.

respect for monetary

stability;": -»"

the

Federal

point for all

ing

stable

to encourage

eco¬

for

the

many could add to
as it is, however,

Short

list.

if it is accepted as an initial rally¬

our

■

Undoubtedly,

it will serve its purpose

(3) That we shall seek to eduV
economy^ than we put in."
cate and inspire others to join in
we must develop
higher
levels of economic citizenship and that fight;
still higher levels of public and
(4) That we recognize that the
private ' responsibility.
We must success of our efforts will depend
primarily—upon our success in
display the moral stamina necr
essary to place long-run interests convincing the Congress to set the
of our nation ahead of individual proper tone and climate for the
nation's activities by acting so as
personal desires.

tained with respect to the levels
of production and employment.

;

Instead

government

moral force equal and
to that already at¬

(2) That

money
sive debt is sound, to destroy the
Illusion "that we can get more out

Our

coordinate

able;

the belief that easy
which encourages exces¬

achieve

made and therefore man-controll¬

destroy

•*''

By OWEN ELY

Council of Economic Ad¬
a national declaratiqn
purpose with regard to the
level
of
prices
that
could

based.

(1) That we are not in an "age
of inflation"; that inflation is man-

Public Utility Securities

balanced budget; and

visers) by

national anti-

policy should

man,

inflation

personal cost.
;
Now is the time to destroy some
of the illusions we have
acquired,
-.

check

(if I may paraphrase Dr.
Arthur F. Burns, recent Chair-

may, I would like to set
forth just a few guiding principles
*

and

(b)

lems through to an effective solu¬

stand

Sets Forth Guiding Principles
-

integrity

Federal spending as can only be
achieved by early restoration of

(2111)

cal

bil¬

secure;

have

for

lions of dollars of funds placed in
their hands must take the lead in

&re

what

decide

erson,

Jr., has become associated

with Peters, Writer & Christensen,

Inc., 724 Seventeenth Street. Mr.
have doubled since 1950 and net Hickerson
was
formerly
Viceincome is up

267%. Last

year rev¬

enues

21%.

President of Walter &

The company did equity fi¬

Company.

gained 13% and net income

nancing in 1957

on a

resulting in considerable dilution
of

share earnings, so that despite

the

gain

were

year

net

A. G. Becker Adds

l-for-6 basis,

earnings

(Special to The Financial Chronicle)

CHICAGO, 111. —Gerald A. Ci¬
cero

has

of A.

rated,

been

added to the staff

G. Becker

& Co., incorpo¬

120 South La Salle Street,

only 1£ to $1.37. This members of the New York and
increase to $1.50 is an¬ Midwest Stock Exchanges.

(2112)

Continued from page

}■,,

particular, if business activity
the

assumes

character

Continued from

boom

first

page$$$0$

and

commodity prices resume their
upward course, the Reserve author¬

The Economic Outlook
bor

of which are only

the lull effects
new

costs

continue

being felt.

expected to
the profit

must

long

ities will be forced to adopt a pol¬
icy of active credit restraint re¬
gardless
of
the
effect
such1 a
policy would have on the bond

continues. ^ It follows that

squeeze

Also, the Congress again turned
housing construction to stimu¬
late the economy.' The Housing

material improvement
in the employment and unemploy¬
ment situation cannot be expected
Act of 1958, involving some $1.8
in the near future.
billion of direct facilitation of fi¬
Exports, another basic', factor,
nancing and lowering of financing
requirements, turned the tide on are in a consequential downtrend.
home construction.
As a result, This is easy to understand as re-?
and
rehabilitation
housing starts at the rate of 1,- construction
220,000 units on a seasonally ad¬ have not only been completed in
justed annual basis in September the important industrial countries
v were
not only 21% higher than of the Free World, they now have
September 1957, they were at lev¬ such modern equipment in many
els' never before reached in this lines that they are able to produce
lasting,

country, except in the great hous- at lower costs than we can. . .;
;
Increased foreign competition is
j'ng boom of 1954 and 1955.
In addition to these direct and particularly'serious because of the
indirect efforts-of government, the high production costs in this coun¬
'important contribution to recov,- try.; Agricultural" price support
•ery. made, by
the;" easy-money, policies long since priced us out
'lower-interest-rate policies of the of the world market for many
"Federal Reserve authorities which farm products,;; And now, wage
prevailed until the middle of Au- policies are doing the same thing
on the industrial front, as can be
;.gust should be kept in mind.
seen
in automobiles and
other
The Fear of Inflation

fields.

Despite the importance of gov¬
ernmental and monetary assist¬

probably the most powerful
of all the forces underlying the
recovery is the almost universal
anticipation of inflation. This fear

ance,

categoric indication

important this is in the

of how
steel in¬

dustry, for example, is given in
an
April 17 speech in Cleveland

market and

interest rates. Such

arises every so often to substitute
certainly have an adverse public funds for private credit in
effect on home building, on cbn- the financing of home building
struction
in
general, especially' and certain other types of con
^: (•;>;';? ; ^^s dah:be(financed, t
public works, and on many mar-; struction. • v- : : :;
Naturally, I have a very parfancls;> fox tlie
ginal businesses. As a result^ rifter
a

policy of active credit restraint

would

while such

boom would

end and would

come

be followed

in the field of non-defense

spend¬
ing, which is scheduled to rise $5.3
billion, or 21%. Moreover, he can
that

anticipated

land

really scared, they would not only
spend their current income but

billion,

affairs

government
is

still

$40

than

thet barbed
Cleveland!

of World War II

The shortages

nearly 10%, below the
billion reached in

and

post-war period enabled
compete
internationally,

the
to

fiscal
'53, whereas non-defense
spending of $30.9 billion is 42%

above the 1953 level of $21.7
lion.

ton.less

wire U. S. Steel sells in

$4.3

of $52.6

peak

the

from

our wage differentials. But
that the differential is greater

despite
now

bil¬

competition is keener, the
handicap is indeed a serious one.
and

He also knows that the financ-

ing of this huge deficit necessarily
tmust be largely through our coinmercial banks, which will inevi¬
tably cause a substantial increase
in

our

money

ness

spending

the money supply,
that the man

is it

rises.

•

There Are Basic Weaknesses
Public confidence and booming
stock market notwithstanding,

basic weaknesses in

are

our

Most important of all,
of the impetus of re¬

recovery.
too much

has come from government
spending and the anticipation of
Inflation flowing from it.

covery

The

labor

and

«the

situation

too, with
unemployed
higher wage demands by
leaders \of organized
labor,

nearly

five

million

ever

presents

lem

the

for

serious unsolved prob¬
future. In this con¬

nection, consider the implications
of the fact that factories increased
production 9% on a seasonally ad¬
justed basis between April and

August this year, yet the number
of production workers was
in¬
creased

consider
fact

only 1%! But, above all,
the implications of the

that

even

though all of the

services of the present labor force
cannot be sold at present
prices

(wages), labor leaders continually
demand still higher prices!

The unemployment problem is
compounded by the fact that great
efforts have been made in
every

industry to-substitute capital for
labor

—

automation

for

.hands.

human

Moreover, these anrout ef¬
forts to economize and reduce la¬

expansion of in¬

be avoided and orderly

May & Co.

automobile has

formed

been

the

tinue

the

Earle

with offices

which will keep that industry busy between now and the
end of the year. Also, the liquida¬

ing

point where it is approach¬

end, if it has not already
it.
In fact, an upward
inventory trend usually gets un¬
der way at this time of the year in
preparation for the Christmas sea¬
reached

;

The

question of upmost impor¬
at
the
present
time
is
the inflation psychology
will begin seriously to affect com¬
modity prices and business activ¬

tance

ity.

So far, the fear of inflation

has affected only the equity mar¬
ket.
Commodity prices, on the

whole, have remained stable.
If

the

fear

inflation

should

spread to commodities and should
induce

spend

ultimate

consumers

con¬

business

•

the

case

Maxwell Sacks Opens

equipment, then the

recovery
will be much faster than has been
up

now.

JERICHO, N. Y.—Maxwell M.
is engaging in a securities
.business from offices at 9 Hightop
boom
.Lane.

Under such

stimulation, the present
would

Sacks

recovery

accelerate

which could
any

into

not be

length of time.

would end in

sustained for

Inevitably, it

break in business

the

rate

time to

our

perhaps

time in other

economy.

resi-

are

greater than those that

from

But

occur
areas

they

are

greater than is good for the stability of our economy as a whole;
and

they

are

far greater, I believe,

than they need to be.
.

Facts

Housing

011

1*1*1

Instability

erally-underwritten

home

mort-

gage, as compared with other pos-

sible media for the investment of
savings. In the enterprise system
which it is our mandate and wish
to foster, competition for savings
turns mainly on questions of yield,
The problem is that the federallyunderwritten home mortgage, on
a yield basis, is sometimes unattractive

investment relative

The facts

concerning the instahome building activity

this record that is

even more

chal-

every

area,

mid-1955

and

What I have in mind is
the fact that, curiously enough, the

longing.

mortgage.

1948-1957,. the

for investment in VA-guaranteed
loans are even greater. We have

In the ten years
volume of homes

started under Federal loan insur-

passed through periods when there

guarantee programs varied from as few as 297,000 to as

were

ance

market

areas

than one

but of

or two
than 60

many

hand,

induce
and

construction

dential

as
675,000.
On the other in which it could be said that there
conventional mortgage fi- was an adequate supply of funds
nancing of new construction, in available for this type of invest;-*
which government plays no direct ipent. In contrast to this,, the suppart, is a veritable model of sta- ply of funds, available; for investbility. The volume of construction iment in conventional mortgages is
Mrs.
Elizabeth Holbrook
and under this type of financing has remarkably s t a b 1 e and
clearly
William
E. Jordan
have joined remained remarkably stable at a more dependable.
the firm's staff.
The reasons for these changes
level of between 600,000 and 650,000 starts a year. How are we to in the climate of the mortgage
account for this striking differ¬ market are quite clear; When in¬
With Copley & Co.
terest rates and bond yields gerience?
•
*
(Special to The financial Chronicle)
We can be reasonably sure of erally tend to rise, the investment
COLORADO SPRINGS, Colo.—
one things These year-to-year and
-return on mortgages ordinarily reThomas E. Savage has joined the
month
to
month fluctuations in
m5re slowiv ;As a resiilt the
staff
of
Copley and Company,
home
building are not due to
•
f slowly. As a result, tne
Independence Building.
changes in the underlying condi- differential or spread between the
tions of housing demand. This is yield that can be earned on an
Columbine Adds to Staff
not to say that demand conditions insured or
guaranteed mortgage
(Special to The Financial Chronicle)
do not change from time to time,
A
DENVER, Colo. — Garry Bell, or that changes in them do not in5- competitive mvestAnthony W. Bush, Joseph M. Cas- fluence the housing market. Quite ments is subject to rather wide
son, Jr.,
and Joe Steadman are the contrary is the case. But the and often ..very sudden changes,

freely, and if it should now with Columbine Securities
management to increase Corp., 621 Seventeenth Street.
capital expenditures on new plant
more

finane- %

•;

whether

Building

investment

May.
Officers of the
Earle C. May, Presi¬
dent;, Cyril H. May, Vice-Presi¬
dent; E.,P. May, Secretary-Treas¬
urer; and Richard R. Thompson,
Assistant Secretary-Treasurer.

son.

Executive

company are

tion of inventories has slowed up
to the

Fluctuations

ten

PORTLAND, Oreg.—May & Co.

1959 cars,

there

the

Moreover

can

industry has started producing the

anticipates inflation?
■r.

After

when

any won¬
the street

|frt&hein^

^fhefiernis ^

all, this is the time of the year
business
activity usually

substantial increase in

der
•

beyOnd question that busi¬
will continue to improve dur¬

ing the remainder of 1958.

spree

of the 85th Congress and the cer¬

tainty of

ahead,

these

again, in mid.-1958, and at other
times, as in late 1956 and during '
growth resumed.
But this will
require the combined efforts of instability in home construction much: of 1957, funds have been
activity is confined almost exclu- adequately available in only -a
all.
sively to that part that is financed smalU minority of areas.; .The
through the federally-Underwrit- sWings iii the availability of funds Forms

seems

supply.

Faced with the

immediately

days

"hot-house"

flation

for the business outlook for

the

Outlook

The Immediate

to the other uses for investment
bility of
funds with which it must compete;
are quite striking.
On an annual and at other times it is very atrate
basis, new private housing tractive, indeed.
starts have ranged in recent years
As we have seen more than once
between 1,300,000 and 990,000. On in recent years, the climate of the
on
whether the fears of inflation a monthly basis, they have varied market, reflecting these yield rebetween nearly 1,500,000, which lationships, can shift very quickly
come to an end or are accentuated.
was reached in late 1954, and just
from one extreme to the other,
In particular, if the fear of infla¬
over
900,000, which Was reached There are no fully accurate meastion persists and, especially, if it
in fhe early months of this year, ures of these shifts, but we have
finds expression in higher (Com¬
The possibility of improving this tolerably good indications of them,
modity prices, active, yes, ag¬
record should command the inter- We do know that of the 60 or so
gressive credit restraint must be
est of anyone who prefers eco- housing market areas
on which
anticipated. Under such circum¬
nomic stability to instability, and Federal agencies are in a position
stances, the upward surge would
to anyone who prefers economic to make regular reports, funds for
be followed by a sharp decline,
perhaps even greater than was growth at regular rates to growth the / absorption of FHA-insured
by fits and starts.
loans have sometimes been ade-;
experienced in 1957-58.
But there is another feature of quately
available in practically
It is to be devoutly hoped that

freight yards to the warehouse by
truck and sell it to the jobber at

spending for national security and
international

haul

rail,

both

v.~.

the Board,

The Employment Act of

Whether or not the present in¬ help administer, declares
flationary psychology, so much in the policy of our Federal j
evidence in Wall Street, will re¬ ment to use its full resources; ;
sult in increased commodity'prices promote the growth of our econ-'
and
increased - spending by the omy on a stable, sustainable; basis
ultimate consumer is impossible to and to do -this in wayS that; will
say. So far, happily, people in gen^ strengthen,;" not weaken or sup¬
eral prefer to save. Savings have plant, the institutions:
increased considerably, as is evi¬ petitive enterprise.;A^
w
+
denced by the growth in savings Employment Act, its letter no less
jries^feflro^^
than its spirit requires that. We market ;attr^ts ah;nhu;suaHy large
deposits of commercial banks and
savings banks, the increased sale strive to bring about a more stable s:,f;■
of shares of savings and loan asso¬ home building and home financ- Sayln^ artd-aLother times it is a
ciations, and the increased sale of ing industry, and that we seek to ,veby poor competitor, indeed, for
life insurance.
The large liquid reduce its reliance on public funds, w^t- ^
BaI hope I will not be misunder- sieall'y,it'is a question of the atassets, however, in the hands of
stood when I speak of home build- tractiveness of the home mortgage,
our people
constitute a potential
activity as being unstable, ahd more particularly of the fedthreat because if people become ing

Blough, Chair¬

by Mr. Roger M.

man

interest

ticular
matters.

1946, which it is my privilege to

sharp decline.

also part of their savings, which
United States would, of course, cause strong in¬
of inflation was revived in viru¬ Steel
Corporation,
entitled
"A flationary pressures.
lent form when the January esti¬ Talk of Two Towns." In his talk
Conclusions
mate of a precarious budget sur¬ he contrasts the costs of Cleveland
My conclusions are very short.
plus of one-half billion dollars for and Dusseldorf as steel producing
Business conditions-are improv¬
fiscal '59 was succeeded by mount¬ centers.
Among other important
ing estimates of deficits, until the things Mr. Blough points out that ing, although the pace of recovery
latest one shows an anticipated even before the opening of the St. has slowed down. Good Christmas
is
assured,
but
looking
budgetary deficit of $12.2 billion Lawrence
Seaway,
which
will trade
further
ahead,
there are basic
and a cash budget deficit of $13.7 make
Cleveland an inland
sea¬
billion! Furthermore, the man in port, Dusseldorf is able to pro¬ weaknesses which must be care¬
the street can see that, despite duce barbed wire, ship it to the fully watched.
The outlook for business activity
grave international perils, the in¬ sea, transport it across the ocean
in 1959 depends to a large extent
creased expenditures are largely to New York, freight it to Cleve¬

see

'APiogiam ;;to?Sfe®iigt|ii^

forces

that

operate from the de-

Harry M. Durning

,,'

FHA-insured mortg

tively slow in operation and, with y
01
g
the possible exception of the spec- anc^ on U. S. Government bonds
tacular results produced in post- of ten years'' maturity and over,
war
demobilization periods, one varied from
nearly 2.15 percentage
cannot hold them responsible for
Tloint_ .
the first half of 1954 to
the wide swings in activity which ?01™f

Srst half of l»a4 .to

characterize

activity which.could be of greater ;
Harry M. Durning, partner in
magnitude than "occurred during -Moore & Schley, New York City,
1957-58. •
passed away on .Nov. 9.

Thus, the differential between the

mand side of the market are rela-

sector of

our

the

home

Principal Factors for Wide Swings

1956 and in mid-1957.

The spread

rosb to more than 2.30

percentage

Pdirits in the early months.-of this
principal factors accountable year, arid in September appears to

I think it must be conceded that

the

loss than 1.75 percentage points in

building

economy.

188

Volume

Number 5796

The Commercial and Financial Chronicle

have dropped tu around 1.75 per-

home

Disruptive Ceiling Rate

(2113)

building at reasonably sta-

•

centage points.;
Vi

Fixed

JyWd
Free interest. Rates

versus

It is these

changing spreads be¬
the yield on federally-un¬

tween

derwritten mortgages and on com¬

petitive investments that explain

why funds sometimes flow freely
into the federally - underwritten
home

mortgage

other times

are

market,. and at
exceedingly hard

could eliminate
substantially reduce these wide
changes we could take a long step
by.

come

As is true in every case of price

control,

long as the legal ceil¬
ing does not stand in-the way of
market adjustments. But when the
yield dictated by market condi¬
tions collides with the legal ceilring, trouble begins.
When this
happens, as it does from time to
time, some relief can be obtained
through the medium of discounts,
but there are practical limitations

toward

stable

conditions

the

are

home

building industry.

•

-The impact on the housing mar¬

home

bility

Let

liberal and the market

are

the terms on which
financing i is available- to
quickly become
severe, and the housing mar¬

the

out

shrink.

struction

were

ratio

to-value
91

falling

comfort

market
at

all

that

the

not

how

see

flow of funds
and home

into home building

financing

less

were

er¬

ratic.

all

tire

whose fortunes

industry, y

industries

other

are

.: '
.
building
employ¬

loan-"

Credit

between

Your Former Clients May Be Waiting
will
d i e r building
To Hear From You
greater
opportunity
to
practice the techniques that give
It may be surprising to some of whether or not he should do so,
us lower home building costs.
the lay readers of this column, Obviously, since I had been keepAnd, finally,-we can stop up
benefit, for

e a

means

th^nrinciDal"sources

one

needless

Federal

spending,

avoid

helnim?

deficit!

and

which they

all

Federal

the

give rise

can

engaging
are

goals?

column has lost some cus- the purchase)

believe

there

are

avoid

must

to achieve

certain

doing,

these

things
we

are

highly desirable

results.

95%; but in 1957 this per¬
centage fell to less than 8%. And
the drop was not due to any change

The second of the two problems
to which I am addressing my re¬

in our housing laws; in fact,'the
housing laws had been made more

substitute public funds lor private
credit in the financing of home

marks, namely the temptation to

sions, particularly those that affeet
the
flexibility
of
interest
lates, that tend to impede the
flow of private funds into home
financing,
and to cause public
funds to be substituted for private
we

should avoid intro-

ties into

our

and

rigidi-

home financing mar-

kets by

laws that require Federal
purchases of mortgages at par,
without
regard
to
competitive
market conditions.
' '

Third, we should never again
construction, is related to these
place
legal limitations
on
the
with a
alternating periods of feast and
ability of the Federally-insured
standards even for the mortgage
famine, more particularly to the
or guaranteed mortgage to adjust
guaranteed mortgage to adjust
banking business, this percentage periods of famine. I am not over¬
itself to changing credit and capirose until it stood at nearly 30%
looking the occasions on which
tal conditions through changes in
at the end of 1957. The most re¬
public credit is substituted for pri¬ its
price.^
cent figures indicate that in April vate
credit in other sectors of our
Finally, laws pertaining to di¬
about 40% Of FHA-insured loans economy, but for the moment I
rect lending by the Federal Gov¬
carried-these terms and another
want to comment only on its oc¬ ernment should be restudied to
12% were being made at the even currence in home mortgage fi¬
the end that credit shall not be
niore liberal downpayment terms
nancing.
\
'"
/
available to qualifying users unauthorized by the Housing Act of
When the availability of private
der these programs on terms that
1957.
" ^
°
funds
for
investment
in
home are
more
attractive than those
mortgages is at a low ebb, and prevailing for credits of a similar
Recalls Lax Credit of 1954-55 *
when lending terms become more
character
in
open
competitive

liberal

meantime.; Then,
suddenness that set new

hnavoidable cncumstances, bad have worked out of his position
\vith an account, misunder— at a nice profit and he seems to
standings of objectives, bad tim— feel much better again. No one
tng of purchases

the

•

they

The

meteoric

rise

the

no-

down-payment loan in late '54 and
early *55 4s of such recent memory
that I need not burden you witll a
recital of the relevant statistics,
nor
need I remind you of how

severe, proposals
are invariably
made for the Federal Government

markets.

to step

forward

in and to provide the fi¬
nancing which private credit in¬
stitutions are allegedly unable to
supply in adequate amounts and
quickly .the no - down - payment on appropriate terms. The most
loan receded as credit and capital
popular formula for solving this
market
conditions ' tightened- in:
problem is to propose that the
1956 and 1957.
:
:
v.
-•
mortgages be bought by the Fed¬
The fact that the yield on the eral National
Mortgage Associa¬
home mortgage loan tends to react tion under its
special assistance
somewhat more slowly to changes
programs.
in the credit and capital markets
-

than does the
of

yield

investments

sible

these

for

other types

partly respon¬
wide swings in

yield differentials. I think it is
fair to say that the current market

I know that I need not tell you

that this formula
the

root

know

that

the
I

that

does not

problem.

need

not

get at

And

tell

you

program

market conditions suggest;

in other

cbses, the degree of administrative
discretion authorized under the

mula

nancing

reasonable ones to be
our

laws.

Federal home fi-

Flexibility

the

key to them all—flexible interest
rates, flexible prices on Federal

I think

:
we

Federal

•

Government

corne

departures from them will be incieasingly raie.
'
■

With Paine,

Webber
—

Several

Some Sheep Stray,

Although

sell out at the very bottom of an

him.

continued

posted

these

keep

and

tions

at ldast mildly

were

our

friendly,

certain that he
silently critical of my advice

although
was

(which he

speculative stocks
favored although he
on

himself

,/r

Mo.

George

Walker, III, has joined the staff of
G. H. Walker & Co.,.503 Locust

Street, members of the .New York
Midwest Stock Exchanges.
i

Bryan M. Allen Opens
JACKSON,. Miss.

Meanwhile

marite^'

the

—

Bryan M.

considered Allen is engaging in a

securities

business from offices in the Pri-

investor),

mos

current

"bull-

again and,
with the business recovery and. a
mriT.^
favorable' market,
other

Fon^en Building.

reborn

was

Forms Allen Securities

^eculatorebeean to^f'into'the
MARTINSBURG, W. Va.—Allen
J^0 SDeruiative situations which E* De Haven ^ conducting a secumy go«lUdient had®sold aT the tias business from oflices at 815
Winchester
Avenue
under
the
stocks

Both

bottom.

had

slowly

been

coursl

g0^

he had been a chump to
them in the first place, he
had lost enough on them. Thanks
Mr. Dutton and Good-Bye!"

buy

business

recovery,

and

market,

other

stocks

two

which

situations

the

had

as a

continuing obliga-

owed to
rather than as an attempt
establish a renewed business

tion

wbiCh I

believe is

Somewhat to my surprise, about
a

month

turned

ago

the

tables

ex-customer
On me and I

telephone call from
him. Now he was in the mood to
take a profit on the two remaining stocks which I had originally
sold him. He stated frankly that
he wanted
my
opinion as to
received

do you

know

THE

FACTS
OF

LIFE
about cancer?
It's time you did! Last year
claimed the lives of

cancer

250,000 Americans; 75,000 of
them lost their lives need-

lewfy because they didn't
know the facts of life about
oancer.
are

200,000 Americans

alive today

cancer

•

•.

cured of

because they went

to their doctors in time.

knew that

relationship.

this

originally sold him. Quite frankly,
this was done as a matter of
poj^y^ ancj

^rm name of Allen Securities Co.

had

ports

/\ttto

five of steady business; but it is

him (providing you have a reason to
remaining do so) as was the case here. Some
personal rela¬ strayed sheep cto come home again.
to

originally acquired on
Now With Stowers Co.
my suggestion also began to make
(Special to The Financial Chronicle)
good in a very substantial way.
KANSAS CITY, Mo.—Middleton Profits continued to mount and 1,
S. Carroll is now affiliated with would still telephone occasionally
Stowers & Company, 4725 Wyan- and keep my departed ex-cusdotte Street.
tomer advised as to progress re¬

occur¬

two

situations

man

LOUIS,

common

extended decline which produced also important to be able to serva rather hefty loss in the account, ice speculative accounts as well,
He then took his business else- Unless a customer has definitely
where but we would still discuss closed the door against you, don't
the other stocks which I had sold forget to keep in touch with him

the

ST.

this

Joins G. H. Walker Co.

Some Gome

Home Again

hadan

ago

years

judgment possible.

account which illustrates the more
rence between securities salesmen
common aspects of the emotional
and' their more emotionally
in¬
reactions of many amateur specu¬
clined speculative clients can be
lators in securities. I received a
telephone call from a customer trying at times, many of these
who was .very much upset because people can become productive
several of the speculative situa- accounts if you have patience and
tions which he had bought at my y°u do not take their moods and
suggestion were poorly timed. He idiosyncracies too seriously. Those
decided right then and there that investment accounts which are
twb substantial blocks of securi- concerned with the conservation
ties should be sold and, against of capital and are primarily inmy strongest efforts to persuade * terested in the production of inhim against it, he proceeded to come are naturally more produc-

Chronicle)

William M.

best

a boiling
changed public
Craven is now with Paine, Web¬ psychology can do a lot to make
some
sick
looking speculations
ber, Jackson & Curtis, 24 Federal
look healthy again.
Meanwhile,
Street.
(Special to The Financial

BOSTON, Mass.

that

should

Should

Recultivated

Snal nositfon ^

and

would all agree

Clients

Some

them will be- thig wag QUt
t^e question, Said
widely accepted, and h
"both
stocks
were
just no

need for following

Wltn John Dougl&S
effort to avoid block¬
CSpeclal to The Financial Chronicle)
law is very limited; and in the ing the flow of private credit into
OMAHA, Neb.—Richard A. Nellast session of the Congress a for¬ home financing. Indeed, it should
seek out every opportunity fo fa¬ sen has become associated with
mula was introduced under which
John Douglas & Company Inc.,
flexibility of contract interest rates cilitate that flow. By doing this
Insurance Building. He was for-*
we can produce all kinds of good
under one. program was made con¬
results for our country.
merly with Kirkpatrick-Pettis Co.
tingent on the rates prevailing -in
We can have a high level of and Halsey, Stuart & Co., Inc.
a second program.
;
'- make every

upon

creeping upward during the
year since my
since
client had sold.
purchases of mortgages, and flex¬ Several times I called him on the
ible prices in the private mort¬
telephone and, without pressure
gage market.
I trust that as we or any "I-told-you-sos," I sugsee the consequences of departing
,t/ th
reDiacement
of
the
from
these basic
standards the
of

has

tures.

the

seem

followed in

administrator to ad¬
just maximum interest rates as

the

basis,

standards, which I put
entirely on a personal

the

application of this for¬
very direct budgetary
implications.
During the fiscal
year
1958
alone,
commitments
were
made by the Federal Na¬
tional. Mortgage
Association
to
affects
conventional as well as
purchase FHA-insured and VAfederally-underwritten mortgages,
guaranteed
home
mortgages in
the yield on mortgages carrying
the amount of $!%■ billion.
It is
federalinsurance or guarantee are
currently estimated that in the
variously subject to additional fiscal
year
1959, as it becomes
limitations on their ability to
necessary
to acquire the mort¬
adapt to changes in credit and
gages
for which these commit¬
capital market conditions. These ments were
made, Federal spend¬
are
the maximum interest rate
ing will rise on this account by
ceilings and other restrictions to more
than $1 billion. This increase
which they are subject under the
accounts for a large part of the
law. These limitations vary among
prospective
Federal
deficit.
It
programs, and in various programs accounts for
only a little less than
have varied widely at different
10%
of the deficit as a whole,
times. In some cases, fortunately,
and almost 15% of that part at¬
a fairly wide latitude is left with
tributable to increased expendi¬

good example of this.
But in addition to- this natural
characteristic of the home mort¬
gage as an investment asset, which
provides

These

back.

come

the

•

sales, 01 the can be 100% right in their timing,

customer thinks he can do better or in their selection of specula^tsewhere. Whatever the reason, tive securities. The best you can
customers do go away and some- do is consideration known factors
to take the and act
times
into

First, the housing and home
financing
laws
of our country
should be reviewed, from top to
bottom, with the object of eliminating or correcting those provi-

he wanted some

the years. Sometimes help.
is a combination of
During the past few weeks we

over

reason

these

certain things we can do that
and

know

sure> that llke all others in this sale and I am sure still held me

™?rtal world that the writer of accountable for the bad timing of
tomers

would be helDful to this end
I

but 1?ot to fhe members of the ing him advised (although he did
profession I am not mention his bad timing of the

secur^7

accomplish

.....

Lists What Should Be Done
How

thus

hiideet

problems

dyeing inflexibilities

By JOHN BUTTON

largely linked *

to construction activity.
The American home buyer

Second,

Substituting Public for Private

Securities Salesman's Cornei

credit.

con¬

new

made with

mortgage

We would all be better off if the

reality of these changes.
33% of all
on

are

they could be
any great comfort to this, industry,
or to the home building industry.

In 1955, for example,
loans

that these alternat¬

Council of Economic Advisers. And

ample facts to bear

FHA-insured

say

home

steadier

means

and

pro¬

produced by these inflexibili¬

ties

way *

are

home

the

There

eliminated by the

ing periods of feast and famine in

to be¬

When the tide turns the

tends to

ket

hibition of discounts, or by the
necessity to subject them to re¬
strictive controls, we have the per¬
fect formula for blocking the flow
of funds into home financing.

American families
more

important degree of flexi¬

business

to the mortgage market is heavy,

other

flexibility in con¬
Still discounts do pro¬

stable

ment in the construction

where contract rates are
fixed by law, and when this flexi¬

thereby affect the scope of the
market. When the inflow of funds

prices

close to par, a condition

bility

changes -in the terms on which
mortgage credit is available to the
prospective home owner, and

expands.

relief since

requires

vide

bility of funds for home mortgage
financing is very great. They pro¬
duce sudden and often very drastic

come

extent of this

tract rates.

ket of these changes in the availa¬

contract terms tend quickly

that

funds flow most freely when

goal of creating more

our

the

great difficulty is en¬

countered

ble and sustainable rates,

•nee a
ance

year

They

health checkup

Is the best tnsur*

against cancer. Make

appointment right now for •
checkup

♦..

and aaake It a

habit for life.

mmmt tmn itcin?

•

The Commercial and Financial Chronicle

(2114).

Thursday, November 20, 1958

...

•

■

be expected to get from
expenditures on durable
consumer goods.
*
(4) The third quarter showed a
lairly sharp rise in the rate of

The American EconomyProblems and Prospects

tween

respect to August and September

personal saving to a level
probably not be kept.

that

will

striking aspect of the discus¬
is

sion of inflation

that

the

out¬

spoken opponents of creeping in¬
flation
are
bankers,
prominent
business executives, eminent econ¬

omists, members of the Board of
Governors

the

Federal

Re¬

System, the President of the
United
States, and other wellheeled individuals, none of whom,
serve

by any stretch of the imagination,
be

can

inflation.

regarded as victims of
Conspicuous by its ab¬

is any protest against creep¬
inflation by the alleged
victims. The people who are sup¬
posed to suffer from creeping in¬
flation do not indulge in any of
the customary methods of protest
—they do not march on Washing¬
sence

ing

ton, they do not picket the White
House or the halls of Congress or
the headquarters of trade unions.
Their most conspicuous action is
to

vote

candidates

for

whom

President Eisenhower describes

"spenders." Hence,
that

clude

the

must con¬
failure of wellone

meaning people to persuade the
country that creeping inflation is
causing acute distress stems from
thb simple fact that these publicspirited people are mistaken and
that inflation is not causing the
acute distress which they attribute

of' 1958—a

quarters

was

— yn
New

particularly marked. The De-

vV; *

Commerce

dropped

said

that

These

115,000.

tion

of Purchasing Agents," those
reporting an increase in orders
dropped from 58% in September

dis-

50%

29%

the

third

and

second

between

influences

three

the

roughly

$30 billion a year
capacity of the econ¬

billion to

quarters

were:

Billion

Drop in rate of inventory

were

There

$1.7

also

was

billion

increase

year

benefits and some of it represents
but some strikes continue more liberal unemployment comamong
parts makers.
The car pensation
payments.; .'Hours
manufacturers will produce at a worked by wage and salary, workhigh rate (more than 400,000 cars) ersin September Were about 1.5%

November

order

stock

less

and

It remains to be seen how

will sell.

cars

new

Most

rebelled last year.

The

tion

tober,

Underlying the rise in personal

year,

payments

' :

•

■

1957,^ and,^ after correction
factors,

set

sales, after
September

tween the second and third

quar¬

the

of households.
HI

Limited Nature of the

The

The Department of

from March to

increased.

$26.8 billion,

the

non-dur-,

and

Art encouraging fact is that:

ables.

gian in new order* occurred
spite

orders

for

a'decline in defense,
non-automotive trans-.

portation equipment.: In spite of;
the large jump in new orders,
unfilled

orders

manufacturers

not corrected for seafactors) dropped substan-

(which
sonal

are

;

tially from $46.7 billion at the end
of August to $46.1 billion at the
end of

:
;

September.:

Retailers

manufacturers

and

continued to reduce inventories in

September,

the

but

continues

duction

rate

re¬

decline.

September the drop in the book
manufacturing and trade
was $400 million—the

^ipm

estimates the increase

Commerce

durables

both

for

lowest

million, virtually
ieve] as September, 1957,

value of

•

inventories
as

same

August but less than

drop of $500 million in July.

the

October,

since September,

for

highest figure since August, 1957.
There were good gains in orders

tot>er to $16,912

agriculture and outside

outside of

ters.

correction

influences,

substantially
•

]eve^ jn four months, rose in Oc-

all-

/•' ;
"orders

new

Surprising

duration, but it will

watching. ;/

Manufacturers'

/
VI
'•/
Retail Sales and Consumer Credit

cj-p

seasonal

for

bear

seasonal

less;

? 1

<JolJaj: volume of above Otconstrue-Retail
October was 3%

This unfavorable trend thus

1957.

far is of short

bur, wage
September/ after
were only"

ago,

about 45/100 of 1%

emphasize out-of-date
features against which the public

residential construction.

salary

them

than

3 been 16.6% less than '
corresponding period of'

the

tied,

well the

ing Nov.

manufacturers have now been set-

dealers.

non-farm

2,*'1}?

Oct. 20, has

liquidation
$4.0
Rise in personal consump¬
tion expenditures
3.7
Rise in government pur¬
chases of goods & services
2.1

only sea¬

sonal changes.
Construction contract awards in

reporting

little
changed—
dropping from 13% tol2%.1 •
?

The poll of the

National Associa-

that

cutting

still

were

October^
19%
them, and 50%
ing them.
The
ratio
monthly

1943, the volume

Purchasing Agents states,
31% of the reporting firms,

tion

ment in October showed

Those

38%.

outlays for
Employ¬

change increased from

decrease

goods.

in October, and those Re¬

porting

cTe?^ncjff between the estimates
} ^ Department of^Commerce
and the. Department of Labor are

sl,nceJaf ,De--bne-t1hat, JSE

consumer

Among purchasing agents re¬
porting to the National Associa¬

beginning a warnmg 0f theJimited reliabilConstruction
contract
awards,1
leveled off. It was
that
be attached to month- which set an all-time high in Au¬
024,000 tons in the week begin- tb-monthcomparisons.
gust, dropped drastically in Sep¬
below the
ning Oct. 27 and was expected to
^
V : v ' -"V• /•.; tember, after adjustment for sea¬
omy operating at normal working
be 2,011,000 tons in the week be"
sonal.' factors, by $6.4 -billion a
hours.
ginning Nov. 3. Demand for steel
.Personal income
The gain of $11 billion a year
year—the lowest rate since last
has been held down by strikes in
In September personal income,
in gross output between the sec¬
Const ruction cofltract:
April.
the automobile industry.
•;
for the third month in; succession,
awards in September were 26.1%
ond and the third quarters was
Model changeovers and strikes made an all-time, high—$6.1 bilabove September, 1957, but con¬
attributable to three principal in¬
caused output of: automobile pas- lion as an annual rate/above the
tract awards in September, 1957, '
fluences — a drop in the rate of
senger cars to drop from 321,053 rate in August, 1957,. at the end
after adjustment for seasonal fac¬
inventory liquidation, a rise in the
in July to 180,952 in August and of the boom, or a rise of 1.7%.
tors, were well below the average
government purchases of goods
to 131,952 in September. Strikes, Transfer payments in ^September,
and services, and a rise in per¬
for the; year. '
/J'
especially in General Motors, held/1958, were $5.7 billion above Ausonal
consumption expenditures.
Heavy engineering contract
production in October down to gust, 1957. Most of this gain in
Of
these
three
influences, the
awards, which until recently have
261,696 cars in comparison with transfer payments wiil be perbeen
drop in the rate of inventory ac¬
running well above 1957,j
327,363 in
October,
1957.
The manent because much/Of it reprecumulation was most important.
have in the last four weeks end- )
strikes
among
the
automobile Sents higher old age "and'survivors'
The increases attributable to each
third quarter was

in the

$23

°K^yf Sinip«?t£
Thi filennnl

durable

Awards,

Inventories

And

•;

Contract

;

agricultural wage and salary employment outside of households
increased by 555,000 between August and September; the Bepart-

nearly 2% aLove the the same
consumption expenditures was an time high
increase
on
personal income of previous all-time high in Decern- ancJ
best ievej jn 12 months.
$7.7 billion a year between the k.er>l.95L As there have been no There
have
been
only
three
to it.
second and third quarters.
The significant changes in the cost of months (July? 1957, August, 1957
The economy expanded rapidly
rise in personal income was ac¬ building, this figure for October and
September, 1957) when retail
between the second and the third
counted for to only a small extent represents a gain in the
sales were higher than in Octoquarters—at a rate of $11 billion
volume of construction. Employby larger transfer payments which
-Der ^953'
<
;
a year.
The most important ele¬
ment in contract construction Jn
increased
from
$26.2
billion
a
The'gain, after adjustment for
ment in the expansion was the
year in the second quarter to $26.8 September was
seasonal factors, between Septemdrop in the rate of inventory li¬
reflecting sometber an(j October, was 2.1% for all
billion in the third.* In the main September, 1957
quidation. Recovery was retarded
the rise in personal income was
by a substantial rise in the rate
gatn
ohr.wP,i
of retail sales. For durables, the
Employment in October show d
due to an increase of $5.1 billion
gain was 4.5
and for non-durof saving.
in the annual rate of wage and
The rate of production is still
rn fVtnher
ables, Ll.%. Sales of non-durables
about $25 billion to $30 billion a salary payments. The rise in wage ?Q<?71
i
' reached $11,590 million, the secand salary payments in turn was 1957. The seasonal drop in unem- ond
highest monthly sales of nonyear below
the capacity of the
due to two principal causes:
(1) ployment brought unemp y
durables
on
record. -The
peak
economy.
Though the expansion
down to 3,805,00°—thefirsttrme
an increase in hours worked re¬
month wag August 1998t Sales of
of production has been rapid, the
sulting from the reduction in in¬
recovery of the economy is still
non-durables in
after adm
in ployment has. been below
limited. Reduction of inventories ventory liquidation, the rise
justment
for
seasonal
factors,
government purchases of goods lion.
were 2.7% above August, 1957, at
was going on throughout the third
and
The Department of ; Commerce
services, and the increased
termination of the boom,
quarter, and possibly even in Oc¬
£onsumer
crec|it increased by
tober; there has been no increase spending on housing, and (2) a and the Department ofLabor concontinuation
of
wage
increases. tinue to disagree concern ng
as
yet in expenditures for pro¬
Jy $21 million in September—a
The recovery of the economy was extent to
ducers' durable equipment or for
1month
when
consumer
credit
miscellaneous industrial and com¬ retarded by a substantial rise in business has mcieasecT_
usually increases by a fairly subthe rate of personal saving be¬ ber of wage and salary workers
mercial construction;
and there
3tantiai amount. For the first time
has been little rise in

Orders,

partment of Labor said that non-

ment

Production and Employment
considerably
ening opposition to inflation is the greater gain than the rise of $3.2
Steel
production,' after rising
fact that creeping inflation pre¬ billion a year between the first
steadily from 1,771,000 tons in the
and second quarters.
The annual week
vents injustice as well as causes
beginning Sept. 15, to 2,026,rate of production of $440 billion
injustice.
000 tons in the week

considerable importance in weak¬

the two departments with

tually

larger

Continued from first page

been

were
.

in:

inventories

increasing;

were

not chang-,
•:

inventories

;

•

to;

deliveries,/ which
has.
since March, is

declining

well below the level of Au¬

of consumer credit outstanding is

now

less than it was a year ago.

gust, 1957, at the end of the boom.
(Table I) •
•
/
; ;
The book value of manufactur-;

The small increase in total con-

September at 987,-

Recovery Up to Now

September dropped to the lowest
level since April, but new orders
of manufacturers reached the

highest level since August, 1957.
Retail sales

October made

000; and

The

prospects for business in
the immediate future look bright
because

the

fact

that

the

1,420,000.

But for the period from
August, the position of

March to

re¬

two.

the

credit is attributable to the ers' inventories of durables is(
drop of $181 million in-the total 1,1.6% below a year ago and of.
volume of outstanding automobile, non-durables nearly 5.4%. below. '
instalment loans between August / 'AV'" ;/:
vra •
and September. In the year end- y.Prices-..,
V;
':
ing with September automobile
The daily index of 22 sensitive*
loans outstanding dropped by $1.1 prices, which showed little;
change between the end of May;
billion^

Department of Labor at sumer

agencies

reversed,

was

covery up to now has been quite
strong recovery from the surpris¬ limited in scope. Hence there is The Department of Commerce esing dip in September, and were much room for a
broadening of timated the rise at 1,102,060, and
the highest in 12 months.
the recovery. The limited nature
the Department of Labor at only
The price level is showing little of the
recovery is indicated
by
865,000.
The disagreement bemovement, and the money and the fallowing facts:
"
capital markets have shown little
TABLE I;
(1) The liquidation of inven¬
change during the last month.
Dec.
Aug.
Sept.
Jan. , Mar.
Jitfe
Aug.
Sept.
tories was still going on in the
Thus far the Federal Government
i95fc ~
1957
1957
1958
1958
1958
1958
1958
third quarter at the high rate of
has been able to finance its cur¬
$4 billion a year and was even
rent large deficit without extend¬
A!!
continuing in the last month of
././.-I'.
2.12-2.22
2.26
2.43
2.58
2.38
2.27
2.22
ed resort to bank borrowing.
the quarter.
KurabTUk
'
1-51
1-57
1.5*
1.63
1.68
1.58
1.53
1,50/
The
influences making for
Alf Wholesale trade
1.1*
J JJ
}•" ' }-»
}-2* UJ }-»
\
(2) The third quarter showed
Durable goods
creeping inflation in the American
........
1-50
160
1.64
1.74
1.78
1.63 * 1.55
1.51.
no
increase in expenditures for
Non-durable goods
.88
.85
.86 . .87
.88
,84
.8?
.81
economy
are
so
numerous
and
1.47
1.43
1.44 - 1.4?
1.5*
1.45
1.41
1.43
producers' durable equipment or All reUil trade
powerful that the prospect of halt¬
Durable goods.
1-84
1.93 ,1.95
2.8*
2.2*
2.12
2218
2.06
for miscellaneous industrial and
ing inflation is remote. Creeping
Non-durable goods
US
117
1.18 * 1.17
1.18
1.17
1.14
1.15
though
inflation probably prevents more commercial construction
new orders and contracts for these
The ratio of manufacturing inventories to monthly new orders
injustice than it creates.

•

■>

and the end of September

(except:

•

3SSSSa"d lrade::::::::; If !:«!

i8-'iS i&:

!:«

.......

abnormally low
level of expenditures for durable
consumer
goods indicates that a
present

substantial

boom

this

field

ahead, though most of the boom
may

not arrive before 1960.

(3> The third quarter showed
only a very small rise in personal
consumption
expenditures
for

the end of the boom in

durable consumer

though
in

goods.

Indeed,

personal
income
the third quarter

consumer

goods

were

manufacturing

............

1,80
2.12,
1.49

Aug. "•

1.99
2.4*
1.4*

Sept.

;

Mar.

1957

1958

2-04
2.55
1.59

2.13
2.73

2.1*
2.86
1.66

2.1*
2.6*

1.64

Nov. 4
195*

VK.T

farm products

1.66

June

Aug.

Sept.

1958

1958'

1958

1.95

1.89"
2.3*
1.54

1.84,
222

2.32
1.61

other than farm products

Month of

Oct, 28

Oct. 7

195*

1958

195*

1*5*

118.6 1 118.*

114.1

Seot.

1.50

91.4
& foods

90.9

92.1

93.1

P43

in 2

1U.3

126.2

126.1

1262

126.1

Sect.

Itof
II* *
l«l.7
125.7

118.0'

1*57'

9* 2

V» 6

—-

Mar.

Aug.

1*^8

foods

Commodities

in the Near East), shows
of creeping up in spite of
the drop in the raw food compo-:
nent.
The index, wh*rh was 86.3

crisis

signs

- on
May 27 and
Oct. 1, rose to 87.8 on Nov.*
raw food component, in¬

(1947-49=100)
85.6
6.

The

fluenced by enormous crops in

the

States dropoed from 84.2
on Oct. 1 to 883 on Nov. ©, but the
industrial commodities component,
United

influenced

ft 0
W 5

126.0

by taurines* recovery,

from 88.4 on Oct. 1 to 90.8 on

Nov.

6, and the index Of metals'
prices increased in the same pe¬
to 992.

riod from

The

index of who^ale prices

continues

r—Week Ending

commodities

P<ce^ed

Feb.

Dec.

1957

-1957

only

strong stimulus that it may even¬

TABLE n

—

Alt

early August caused

rose

Durable goods ..............
Non-durable goods

;

-•1956
All

after

The annual rate of production,
slightly greater than in the first
according to the latest govern¬ quarter. In other
words, the econment estimates,
gained $11 bil¬ omv has not yet received the

lion between the second and third

Dec.

were

$9 billion a year larger than in
the first quarter, outlays for dur¬
able

and in September was well below the level at
August,. 1957.

continues to drop,

taxes

Hie Course of Recovery

things had begun to increase.

temporary bulge in late July
by the

and

.....

—

The

for

pulled

down

slightly bv. the droo fn the prices
of farm product*; while the index
Of commoditie*
than farm

products a*»d
'Table

foods

remains

Steady
In

the

months, immediately

Number 5796

Volume 188^

The Commercial mid Financial Chronicle

(2115)

price® of commodities on $2.2 billion of bond issues, and
farm products > and- approved issues representing 80 %
foods will tend to rise slowlyanduf the dollar amount -^-though

try.

Consumer credit has become the demand, of constituent® fop a
large and flourishing industry, large number* of things; soittd fa#More than $40 billion of consumer ly needed (schools, highways* infarm products win
continue to about half of the issues were re*
A1
>
credit is outstanding, and corf- land, waterways, better harbOJlfh?e- sumer credit ha® been developed cilities* additions,, to the* Water
drop, m spite ot the efforts of the jected. i The
volume ot issues
cilities,. additions
die? "Water
aovernmmt
to keep
up
farm'-voted on-was second only to the aganm inflation. indeedopposi- into a power device for selling supply, sewage disposal, flood
into a
«.wiL-M.J7fwin«n'.wrf^
in- lout'.
tion to inflation is the only posi^
-7.
1~ everything from automobiles and, control) and other projects that
prices by spending nearly $5 bib- $2/1 biUion voted on in 1956.
lion of the- taxpayers' money for
Thef Treasury is about to seek $3 11011 "J31. 13 respectable* jfurmer- household appliance^ to trips to are not so badly needed. From the
this purpose.,
&
There -is no jiivi^ 'bilKoninnew money, and a prinmore
«13 tasnronabte (though er- Europe.and meals in restaurants, standpoint of the politicians, die
»«»%>.«•
*«j
„u
vr
_ ^
•»rn»»«<si irv +k^
ArMArH_eitra]nrnhT£rn
to
predict that
even Th«
so#»iolofficj»l
effects
of
thA
w
iho mtntiio..
«i>a
fantastic enterprise intheAmeri- 'Cipalrproblem of the monev mar- .roneous; .J'S .?red*c^1t inai
of the moneymarev.®n The sociological effects of the test is the popular demand fat ttoe
-can, economy than the attempt of* Ket
is:, to find buyers > for«the
ration will eventually great spread of consumer credit project.
Regardless of
the government to prevent the ' Treasury's securities in an age of .prGauc.e
o~
fuS ,s*
are far-reaching and, on the whole, need for the expenditures is great
nnAlrAnmmi
111 V16W Ol tilG allTlOSt. l]THVftrS9l
^
technological revolution in agri- inflation^.
Treasury spokesmen.■
L ? jl IJ0S* pmversal good. Certainly the method of or smalls the outlay means mole
«culture- from reducing prices ♦ torhave asked institutional buyers to
i1 +£nd .
- buying first and saving afterward
jobs, and more jobs help; the -fell*the consumers. There is partlciH1 pmrchase government- bonds as a • general acceptance ot tne view has enabled millions of families in ticians meet the insistent demaod
lar irony attached to the nonsense"4 contfibution toward preventing a
3 stow rise in prices is modest circumstances to buy goods from their supporters for governfoeeause
all
politicians of both further drop in the value of the U great calamity, one must regard that they would never haVe ac- ment employment, v .
• v. i
:parties pim»ly claim to be op- dollar. ;This is a poor reason.for
a3QxicaT Jhatalmost quired' by conventional methods
There are two DrihciDai influposed to tail a tie n.
But the buying a; bond, especially when *
inflation, 0f saving. But the expansion, of ehces on the cost side which tend
extraordinary pro sp erf ty of Jh^goyermnentdeficit is only one:
tol®rate 3 consumer credit is financed in no
trade
American consumers and the pro- of many influences tending to
*
almost everyone small measure by the growth Of unions and the farmers.
and the farmers
" a
asserts will eventually result in
bank credit.
found - complacency bred by this make the dollar worth less,
Hence, though this
disaster.
The explanation is sim(1) Hie trade unions. The trade
rapidly expanding industry enprosperity makes it good politics
r-,
—
—
.——
a;,. X
pie. However much most people
;
for each of the two- political parcourages saving, it is also an in- unions have
about. 16 miHidfi
p ,servlce t0 opposition ftationary influence.
Hew Will the Recovery Be
ties to favor heavy additional tax¬
members. Their principal busiiiMS
to inflation, they work hard to do
j
Financed?
»
is getting wage increases for their
ation for the purpose of keeping'
things and, to get things that tend
The Federal Reserve should have members. The trade- unions- bite
up the prkes of food and fiber.
-ahead the

than

other

The Formidable Forces Making
For Inflation
•

•

w——

—

,An

——

■

...

l._ll

A**

tnVoduceInflation"^the

...

consumer Brice index did
Ma"y thoughtful Persons are. to produce inflation. The alleged authority to, regulate the tenns of not interested in limiting, the titage
rfeyte^reen Aum^t^, opposition^-,of, the country to infla- ' cenmmer-«ed!t as;it. did..durmg:-ineMeMA'ttMt.:they oMfiaW-Sr^

The:
not

petweei^^Augus^am^ bep

finance a re-

economy to

tion is superficial, if not phony,

the Second World War and during

the Korean,.War, but

bSSeS TOnte^dn"
KiiMimL

gerterai

such

Sfl^onTh^tiS^ffipite
largest rise® have been^^ih medicUl^
care which, has increased substan-

Vfear^WilT^e^bout^$6^^billidn
5,^^

ISf 'S

which,

the

same period;
136.7 to 141.3.

^ of taxes, apd

•

>fV

..v

;

The Money

aiid fo:,:fhianee"'housing;
Where
/ wiij; the m<6iey come from?
.

an* Capital Markets

Vg^

the

demand

goods

and

the

The principal .groups and organ-

^ n wiU be provided

by
an .expansion of bank credit—as it

The money and capital markets
ha^e been* qiuief during • the last should be. It has been generally-v)
month, The bill rate, which was true throughout most of the last TJ115

and2.fe dnNov:'

for

groups that work to raise the cost
of goods.-'

•

«'

Most afthvm

that wages sho<M

not rlse faster than
manhour. The members

expectSe

to do the best thatit tin

tsniagA^eeyolpme^iehtmorfdnalo

in the /community that knowingly
or ^knowingly are working for

the
«»v

Idea

necessary aut or ty*

ployees (including fringe benefit*)

(4) The recipients of old age has risen more than twice as fast

in-nSre ti^'they inflation- They may be divided pensions and old age assistance, as output per manhour. Although
into the groups that work to raise This group is often described as strong trade unions are an infill-

Beptem&er.md kttransportation,-^^
creased from

nejertdhe

personal saying is at not what they say. Judged by what P°sal would arouse overwhelmabout thc sa,me rate as a year ago, people, do, the country is strongly mg^opposition from the retaders
iorp<> e^^vmg.haf.d£°PPed in favor of inflation. The wonder of durable consumer goods, from

bo-

tially.-iFOibi 142.2 in April to-146

^articular vardstick

n pro-

The construction industry,
^ndus^y consists of many

one which suffers from inflation,
As a matter of fact, the so-called'
"senior" citizens are a powerful*
pressure group with an insatiable
demand for bigger handouts. Conseciuenfly, they are a strong influenee for
bigger
government
spending and for inflation.

for inflation* their upward

once

pressure

accelerates

wages

technological, change.,
Fur#***
more, strong Jrade^ union® are? an
influence for social stability, since
they assure that workers wfll
share abtuidantly in> the gains of
technological progress.

(5) The veterans. The veterans
^) The farmers.. The farmers
are"W^<^FWtto,lkte-a^ are net ^ numerous, grouiy tint
facturers of construction equip- aggressive groups quite unabashed^^^^^

All of the- to provide the economy.with the

have
f„hd« needed to finance it* "ex- -ment; and more4 than two and a
in pressing demands for expensive dut» mey are wiaeiy scarier^ ana
rates to nansion
Fairt of the needed funds kal*
million workers, most of .special privileges. Few politicians hence they are a* strong political
I Tares, ,xo Pwwn.^^i orine neeaea iunas
,
»
nnwerdare eo verv far in onno*ine the influence lit a
large number of
21/2%, but these changes- do. not haye. ordinarily come from the wnom are organized into power
dare go very tar in opposing tne
farmer*
have
«pcm
to, inAicate a, chaeae of nolGrowth nf the banking svstem and 'ul trade unions.
The political insatiable demands of the veterans
~fs'
ine, farmers nave sue-

Fp^ral' ft

?•.«

their
KSS-£■
raised

fetftTfti BaMa

rediscount

«»*•-

^Tctio^^conS^etion In- f0r more a«d more hTheg=.
System",j^ftnijloubtedly ex|?* ^ ^^^r0fl'|™re^^e^aa^snu^1^.5 a year on v^rari£^Such M it
veterans—mucn or it

serves'fsmpltis^^tesetyes, Jess bdr-- definitely. The crucial question is levels oi governmsnt^are numer
roWMgS). tett <fte!ltee rfese*°v«s-<>f whether the demand for Investclose. Virtually all groups
"the member baiiki cofitftMie about, merit funds is so large and,-«ie
oonstructron industry at all
times are eager for more public
where they w'ere in September source -of
investment funds so times arp eaeer for more nublle
and thei latter pact of August—- small thai a dangerously large ex- expenditures on public buildings
and publio works of various kinds
ai ound
$100 million. On .Oct. 1 * parisioh of credit will 56 necesfree resejrves tvefe: $92 miilipn. orv sary^
-U I and, in addition, are interested in
the government's taking various
Oct. 29^ J^' fufllidn, mid^pii- Woy. , - The needs for investment-seeksteps to encourage private con5, $47 miBion.:
:
rtvs r ;
ing funds resulting from the- rise
nig^mnd® resulting Trom the rise gtruction, especially private resiThe business loans* of reporting in. the government deficit and the
^nfia^c^^ructinn
member banks have increased, by >drop in the rate of private in'
$675 millten from AugA 6 to Oct. vestmenir may be estimated for the
'(2) Jhe various industries makar vear 195ft at rouiihlv $4.4
ing defense goods for the govern29, ,'ini; ;compar6oni iv^h a; snaalL calendar; year 1958 at roughly $4.4 Jjjg defense goods for
governdecrease in. the same period last billion less than last year—the re- ment.
? +
j
Pr°Sram
defense program ^3S
ye»» 'an^ ah ' increase
year .^anidi- an t h^ease: ol $1467- suit of a-shift in the Federal cash 5^^ thousands, of enterprises deof $1467teade
miffidix hi 19561. The week^ re- budget from a surplus of about
^ ?r ,a considerable Part °f
porting member banks on Oct. 29
billion in the calendar year tteir maiket upon defense buying
held a smallet volume of govern- 1957. to' st- cfeficit of .about • $6.5 b^^e„g°ve^ment. Likewise, the
ment securities than they did on billion in the eaiendsar year 1958n juhs of a large part of the work
Sept. \% shortly before the gov- and a drop of about $12 billion in. furee of these? enterprises are deAO.rt
npnHpnt nnhn ffnuprnmAnt hnvimt
e^ent rais^ $2.7 billion m new irossTprivatrinveslrnVnt
pendent upon government buying
.

•

...

the

The

through two short-term is- saving, will be about the same in:
sues 4,'^pt. 29,
Corporate de- absolute amount in 1958 as in 1957„;
mand for short-term government and gross corporate saving will be
money

securities is strong-

the selling prices of

between $5 billion

There has been little change

in lessrthan in 1957.

reeentiy is-

.lehg-terra- securities dHiring
^
the last! rnonth,an* theDow-^«ea.
index of 40* seasoned bonds ha®
also shown little movement. It was
8663 on dct. I, 86.35 on Oct. 13,
and 86.23 on Nov. 7.
YieM® ort
sued

long-term securities are about as

high .todhy as af the peak of the
tight credit policy in September

and $6 billion

Hence, M.Ieokk

has

hut

nroffress.

that

the

net

cost

^D^a^etonfj0^u°f
defense program to the coun

tne aerense program to

October,

1957.

change i» Federal

•-

have,
more

are

constantly demanding

(6)

and more.

would make a® nmch sense for die

government to* buy_ million® of
ticketst0 JP°yie J:"^a'J'^!:to alleyiJ1? effect of the shift in* de-

^and from movies to teievisida as
the
government
td

for

spend

research scientists and

ad; me
markets. And yet in the present
engineers. The research scientists f;scai Vea^ th<» Mwmmfnf «iii
engineers.fisc3I y^aT- the government Vdll
3nd enJ*11spfend
billion on SUpand engineers .would^ u^oubtedly Sp^n<^ about $4.8 billion oft si^)be surprised at fmdDmg themselves porting- the prices of farm proda5JS2ulis3
ff porting
described as a group tending to nets and on financing Withdrawal

produce inflation. Nevertheless, 0f jan(j from production, and ho
smce they ,have heen doinga_re- politician in either party cteces
markable 30b in developing new speak out boldly* against, this rifias

^menefsuppTy ?^hno ^el!

SmmS

Pr°J=*ess also raises ou^iur per
manhour but, Since it also m-

™«"ey wppBh xec m^ogica

account of what congumera
great

demand

American
.

f1}

consumers is not for more wheat

the relationship between the two,
based on the totals for the year,
wih be about the same as it was

the
waffe® rather than
or cotton or peanuts.
It; is for
try»probably small. The jet air- I!I™V®.r?L!!.!l,ages mller tnar> steak. The United States' i& Ike
try is probably small. The jet air

last year.

alk it® branches, materials capable
""
^
—"U1-

The prospect is good that for the
rest of this, year at least therecovery can be financed out of corporate savings—since gross private
investment has dropped far" more
than corporate saving. Of course,
comparisons based oii totals for
the year do not take account of
strain® introduced into the money
market by seasonal shifts in the
market

of resisting extreme® of temperature, miniaturization, and many
aspects of technology have all
been speeded up by defense spendto the great advantage of the
community But even when defense spending raise® productivity
.^a?t.
fre^uently does), it is an
iw#ivii!ik>r*or'cr fnrhiPn/»*> honansp tliA
inflationary influence because die
technological advance for which
the defense program is paruy
partly
responsible createsi investment op-

tne coun-

plane, the electronics industry in TO reauce prices,

The recent
Reserve policy
has not yet had-trme to affect the
scale of residential construction,
The new CbngreSs which convenes
in January is- likely to put more
rtn„urnmpnt rrPfiit at the disDQsaf
government credit at the disposal
of the residential building indus-^ demand for investment funds and
toy.
irr the supply of such funds. In
The backlog of new issues of recent years the state of the Fed- Portuntties and helps the demand
cornorate
bonds
and preferred eral budget has shown pronounced for investment-seeking funds outstock® remains much smaller than seasonal shifts.
One of the pur- run the supply. The defense proin the spring months when it-was poses of a banking system is to fra™ 11s a good illustration of how
ar0und $1.7 billion. On Oct. 3. if. mitigate the effects of these seaua® $12
billion, and on Nov. 6^ son! savings on the demand for investment opportunities tends to
ci i,
billions On Nov. 4 the state® long-term funds and the supply of Produce inflation.
'add localities of the country voted them.
(3) The consumer credit Indusand

pitalizatiori is provided on a large
scale for disabilities not incurred
in mililary service. And the veterans, not content with what they

investment opportunities _tney ing of the pockets of city dwellers.
must he regarded
inflationymust be regarded as an Mettem
Not
^
.
Attempts of the government to cut ary influence. By ^yolopmgnew
program an imnortant inflhdovm buying obsolete defense Processes and new
goods,
P^^an imrmrtant m^oieet resistance because cut- J^ey help the demand for invest deficit^ but it is a cause for wastehacks will throw voters out of ment-seeking
funds e^ j
. resources
A nroneelv
werfc

if the^deraandi for^ investmentFortunately, defense needs have
seeking funds will drop slightly greatly accelerated technological
savins

g(M^ that they produce^-twettv

''dKability" pensions are awarded*
ggg
without oroner regard to the realwithout proper regard to the real- mucn regardless of whetner or not
ities of disability, and free hos- consumers desire these goods. Tt

Tg»«ii flW fliA Mirmlv

unjustified. For example, so-calle*

^
ernment sunnort th#» nricc* nftkc

No
of
Ar" feature ^ our economy is

more encouragmg

than the steady

growthin the l^dyof knowledge
amiable for mistrial app• c
n
and the rapidly growing pumber
of scientist® a nd engineers. But
J}},e GxP^ding md^t^of res^ ch
illustrates how inextricably inftion is tied m witn good fea ures
of tno
Growing scienof the economy. G ow g
"
tific research ^a^d^ developmet
tends simulaneously to produce
was
^

economv.

both inflation-and higher standards of consumption.

(7) The politicians of both parties. With relatively few exceptions, the politicians of both partieS ard a s llg
*or
more government spending at the
local, state, and national levels.
Spending is a way of satisfying

i^i^stil^ori1? hambur^er^^tamdar(j Qf living.

In order to convert

this country into a nation of steak
eaters, the United States needs
than double its present catpopulation. The worst feature
0£ tIie present farm program. Is

m0re

that it encourages farmer® to pro^uce cotton and wheat instead
of beef. Increasing the cattle popuiati0n would have to be mainly
accumolfslieH hv an pynancinn of
accomplished by an expansicm of
cattIe raisMg
^
i

since the cattle population of the
plains is about as high as can be
supported by the variable rainfall
out there.
If the farm support
program were simply terminated,
the growth of cattle raising in the
Continued

page 32

The Commercial and Financial Chronicle
32

Continued from page

31j.

The American Economy—
Problems and
which

.southeast,

going on

spite of the farm program, would
be accelerated, and the southeast
would soon become a rich cattle
raising section.

Prospects

including vacant land adjacent to

appear

proposing anything specific,
as reforming the
farm pro¬

from

such

cutting down the ridicu¬
payments being
made to
or

lous

Why Is Inflation So Gradual?

•

many

price index has increased only a creeping inflation prevents injus¬
little more than 7%,. Why is infla¬
tice as well as causes injustice.
tion creeping rather than gallop- The
opponents of inflation have
ing?
There are four powerful been unable to produce persons in
checks

inflation.

the

first

place, government spending of all
kinds is checked by the fact that

people do not like to pay taxes.
Though people do not associate
government spending closely with
any specific tax, they
do know
that in
general more spending

later

sooner or

means more

This knowledge

taxes.

does not prevent

their tolerating government defi¬

•

cits, but it does act as a restraint
the size of government deficits.

the

second

employers

place,

struggle hard to keep down labor
costs because

employer can be
able to pass on
higher labor costs in the form of
higher prices. Employers endeavor
to hold down labor costs partly
by resisting union demands and
partly by improving technology.
In
the third place,
inflation is
retarded by the fact that it is risky
to buy goods in anticipation of
higher prices. One can never be
©ure that the particular commod¬
ities one buys will not go down in
price or become obsolete. Finally,
of

sure

■

being

number who have suffered
severely from inflation. And the

large

opponents

of inflation

weakened

case

find their
important

benefits conferred by

creeping in¬
flation.
Creeping inflation pre¬
vents rising labor costs from pro¬
ducing unemployment and it lim¬
its
frictional
unemployment by
facilitating
adjustment
to
eco¬
nomic change.
On balance, con¬
siderably less suffering and injus¬
tice follow from creeping inflation
would result

than

force

dynamic

attempts

from

stable price level on a

economy.
XIV

What Is the Prospect of Halting

(Creeping- Inflation?
The

many

influences

powerful

that combine to produce creeping
inflation make it evident that the

jorospect -of halting creeping infla¬
tion

There

remote.

two

are

•

©pproaches to the problem. -The
first one is to weaken the infla¬

This

inflationary

second

look

the

way

some

One

con¬

the ratio of their expenditures on

unions

could

without

not

and the scale of

could

giving

weakened

technological

not
up

benefits produced

be
some

re¬

reduced

by them.

the

It is

better to accept some mild infla¬
tion than to sacrifice the benefits

•

holding 15% to 20%
stock. If all em¬

consumer

credit?

large

The anti-infla¬

Results

outstanding

and directors were in¬
cluded, this figure would be close
to 30% to 35%.
With
substantial
sums
being

ployees

prod¬

spent on research and new

sales should
at increasing

ucts

development,
continue to expand

rates.

Research

and

velopment
sions

expenses

charged

are

operating
obtains

product de¬

of all divi¬
current

off to

expenses,

spite

15%

new

will

have

many

lines
In

had

level.

lion

sales and

Based

the

above

will

attract

ahead

based

fiscal

the

fiscal

1960

against

four

divisions, all ac¬

quarter of the current

the

year,

capital gains

great

Siegler

Corp.

far

better

long

time

into

Est. F. Y. E.

Sales

Earnings
Book

per

model changes

automobile

year

reason

make

in the automobile

industry,

most of the companies
in 1959 are offering cars with fea¬
tures that consumers showed

GATT

and

other

effective."

figures

(1) Prom

given

Continued

' '

Use

Quantitative

Restrictions

Noting the International Mone¬
tary Fund had found that no balance-of-payments
for

exists

problem

Germany, the Council said that

the U. S. delegation, "should make
it clear that failure to abolish such

restrictions

onerous
son

the

situation

trade

balance-of-payments

permits

undesirable

could

have

for all
including Germany."

nations

consequences

Recent Changes
~

Antidumping

Laws

■

Changes in
dumping law

were

described

"undesirable"

while

those

Canadian law
consistent

the

anti¬

in the

said to be "in¬

were

with

the

GATT."

The

Council said

any action^ pursuant
to the Canadian law that actually

"vig¬
orously protested."; v
.

Marine Insurance

(3) $11.45
1,515,677.

1,714,096

'•

institutions

'•

The Council recommended sup¬

•

port/of GATT'efforts to-end gov¬

ernment restrictions
Vice-President;

in¬

consultations

$84 to $88 million

11/12/58 to Dow Jones by Ray L.
(3) As of 6/30/58.
/ ./ /" . \

Ash, Executive

(2) As of 7/31/58;

The

•

the free¬

on.

dom of traders to decide; where to

obtain transport insurance. V

!/"'

„

vestor.

7/31/58.

; •-

At(

FulureA Markets 'J

„

The Council requested- that

the

GATT* be asked to study- the prob¬
lem:, of'

increasing

futures markets in

the value of
helping to sta¬
.

bilize the prices of raw-materials.

Charles Holm Sells

Bowling Corp. Stock
An offering of 450,000 shares
stock of Bowling Corp.

;

U. S. International Business

Group Favors

common

America *'

Steps to Strengthen GATT
no

our

firm adherence to GATT and finds such

material additional

legal obligation. Offers other views

international economic

Plohn- &.■
•

common

stock

International
merce

State

urged
to

take

Chamber

the

Com¬

letter to Secretary

Dulles

State

for

of Chairman, Philip Cortney,. Presi¬
dent of Coty, Inc.
The Council
Tariffs represents American firms and

Department

Contracting Parties which was

held in Geneva last month.

The recommendations

were con¬

business

within

associations

International
merce

Chamber

and issues

ommendations

United

the

Com¬

States

calling for definitive adher¬
to the GATT. the Council

stated, "As

would involve

obligations
other

than

months'

understand it this
additional legal
the United States
to give six

upon

the

need

notice

wished

and

the

the sale

two

The company

value outstanding.

The

permanent
.

United

chairman pro¬
posed by the Council would have
the double assignment of leading
the U. S. delegations to all GATT
meetings and of fostering greater
permanent

in¬

exercisable

has 500,000 shares

stock

present.". Such a step, according
to the Council^ would be "a formal

The

warrants

ing centers.

to
of

indication

share of
common

period of 18 months at $3.25

withdraw rather than 60 days as at

States interest."1-

one

two

share.
The other warrant,
which expires in 30 months, is
exercisable at $3.50 per share. ■
j
The company,; incorporated in
1957 to own and operate ten-pin
bowling centers, is not yet in busi¬
ness, bub the proceeds of this fi¬
nancing
will become .working
capital for the purpose of build¬
ing and operating modern bowl¬
ing centers or the leasing or pur¬
chasing of existing modern bowl¬

foreign economic policy.
ence

stock

per

reports and rec¬

underwriter.

purchase
warrants.
unit was $3.

volved

Council's

the

from

the

per

One

steps to strengthen

the General Agreement on
and Trade at the 13th session
the

Co.,

Each unit consisted of

policy.

tained

900,000; common

purchase warrants and sold
was oversubscribed today
(Nov. 19),. according* to Charles

price
The United States Council of

of
of

units

step involves

with

stock

U. S. Council of the International Chamber of Commerce calls
for

Rowe of Peoria.

the

EEC

$2.00 to $2.25

(2) $14.67

—L.
______

under

violates the GATT should be

SIEGLER CORP.
Est. F. Y. E. 6/30/59

7/31/59

(1) $2.75 to $3.00

Value

Outstanding Shares
Current
Market. Prices„'r

sanctioned

po¬

(1) $100 million or over

J-

—;;—

their

customers.

1959. By
required

and

1955 to 80 in 1958.

LITTON INDUSTRIES

present

the
ended June 30,1958. recent price of $23 per share, as
This exception
is slated to be there are many similarities in the
sold. Mr. Brooks has stated that capital
structures and projected
he is especially concentrating on sales and earnings of both corpo¬
rations
for
their
present fiscal
cutting costs and making opera¬
tions more efficient and profitable years. The stock of Litton Indus¬
tries rose from a price of 10 in
throughout.
The first

creating

representatives should

that

with

million, or even $200 million if
production and operational bugs
of
Hallamore
division's
newly

tential

Council

which may be created should con¬
tinue and should be both thorough

indications of
military
electronics
orders
and
normal commercial growth, sales
could readily reach $110 to $125

veals

not

States

sist

Looking

year.

proposals
"appeared

area

The Council added that "United

acquisitions of three of the divi¬
sions, but which book values are
regularly amortized
and patented item are ironed out in
charged against current operating time, with a commensurate in¬
expenses
at the rate of about crease in profits.
With
most
of the
electronics
$160,000 annually.
Mr.
Brooks
stated
that
all stocks selling at 15 to 40 times
divisions, except one minor divi¬ earnings, a comparison of Siegler
sion, now are operating at a profit; Corp. with Litton Industries re¬

introduce

particular, .1960 will probably
a

could

which should be
possible to achieve based on costcutting
economies
which
have
been
instituted,
earnings
could
reach the level of $2.00 to $2.25
present

suggested

trade

Article XXIV of the GATT."

of less than 4%,

for

free

permanent discriminations against
outside countries of a sort which

through to net,

carry

the

20%. This would

being

consumer

improvements
that

than the year

the

time

for

the

some

sales

entire fiscal year

bring sales to the $84 to $88 mil¬

division regularly

proprietary items to their lines.
The only patents given any book
value, $505,357 as of June 30, 1958,
are
a
few
purchased
in
the

months

indicate

increase for the

of from

first

the

for

therefore

would

patents and adds new

each

that

fact

new

signs
Measures recommended by the
rejecting in 1958. By 1960 the
Council include ''definitive adher¬
principal
American
producers
ence" to the General Agreement
will be offering cars with little
The other difficulty with at¬
by the United States, appointment,
more than 100-inch wheel bases,
tacks on specific causes of infla¬
of a permanent chairman of the
tion is that these influences are so markedly different in design from United States
delegation to meet¬
the clumsy behemoths the com¬
powerful that they can defy at¬
ings of the Contracting Parties and
tack.
What groups in the com¬ panies are trying to sell in 1959.
the vigorous defense of American
munity are strong enough to put
interests covered by the provisions
up an effective fight against the
of the 37-nation trade treaty. The
With Quail & Co.
demand
for
more
government
Council also restated its position
(Special to The Financial Chronicle)
spending by the farmers, the old
that the United States Government
folks, the veterans, the depressed
DAVENPORT, Iowa—Henry E. should adhere to the Organization
areas, the defense industry, the Reichert is with Quail & Co., Inc.* for Trade Cooperation, the pro¬
construction industry, or by most Davenport Bank
Building, mem¬ posed administrative body for the
of the politicians, or to insist that bers of the New York and Mid¬
Agreement whose terms now gov¬
the Federal Reserve be given au- west Stock
Exchanges.
He was ern the flow of more than 80%
thority to control the terms of formerly with Negley, Jens & of free world trade.
of strong trade unions and of
scale technological research.

The boom in durable

difficulty is

inflation, such as strong
trade unions or large-scale tech¬
nological research,, produce im¬
portant social benefits. The trade

likely to be considerably stronger
in 1960. By 1960 many enterprises

ing for

Mr.

and none
is past his
addition, top manage¬
holds an important stake in

ment

goods may begin in 1959, but it is

of the influences mak¬

according

years,

forties.

and re¬

year

comparison is made due to .! I, therefore,: believe that the
sumer goods increased by only $4
the many similarities, except for stock of Siegler Corp. at the cur¬
billion a year.
On the basis of the- wide
disparity
in market rent price of 23 is an attractive
past behavior of consumers,, out¬ price. It would appear that Sieg- opportunity to participate in the
lays for. durable consumer goods ler's sales, earnings and book val¬ dynamic growth of the electronics
in the third quarter of 1958 were ues were
just one year behind industry, and that the inevitable
around $5 billion below normal.
Litton Industries, which had sales public recognition of the excellent
sales and profit potentials of the
The
conclusion
follows
that
of $83 million and earnings per
some time in the near future con¬
Siegler Corp. should bring sub¬
share of $2.13 in fiscal year ended stantial capital gains to the in¬
sumers will substantially increase

but outlays for durable

encounters

approach

two difficulties.

that

influences.

Brooks,

have Ambassadorial rank

port to the Secretary of State.
(the summer vacation
quarter), normally the lowest in
European Economic Integration
sales and profits, showed a 14%
The Council recommended that
increase
in sales to $19 million
"The United States should con¬
and a 45% increase in profits to
tinue to press with great vigor to
35C per share. In addition, October make sure the
European economic
sales and profits were the best on
integration is fully consistent with
record with sales at approximately
the principles of the GATT."
It
$10 million, as against $8.4 million
warned of dangers in any other
in 1957; an increase of 19%.
course.
Specifically, it noted that
fiscal

for fiscal year

durable consumer goods to their
tionary influences by deliberate¬
incomes. They will do this in con¬
ly creating unemployment. This
siderable measure by going more
method is wasteful and unjust and
the public would not tolerate its heavily into debt, thereby gen¬
raising
incomes
in
the
use.
The second approach is to erally
economy.
make specific attacks
upon
the
©everal

Average age of top management

quired in 1957, operating at a loss

Goods

Consumer

year,

: :/

xra

v -

sion.
is

The Coming Boom in Durable

in which
consumers
are
spending
thenmoney indicates that a substan¬
tial boom in the buying of dur¬
able
consumer
goods is ahead.
Between the third quarter of 1957
and the third quarter of 1958 the
annual rate of personal income
and most important of all. infla- after taxes increased by $5.3 bil¬
tion is held down by the fact that lion. The annual rate of expendi¬
most
people have only limited ture on consumer durable goods,
.©mounts - of
accumulated
liquid however,, dropped in the same pe¬
©avings or limited amounts of riod by $3.9 billion, or nearly 10%.
credit. Hence, most people cannot Between 1954 and the third quar¬
©pend in excess of their incomes ter of 1958, personal income after
tn large amounts for very long.
taxes increase
by $76 billion a

; *

present plants for future expan¬

the business,

build up a strong
public demand that inflation be
Attempts

and such power¬ halted suffer (1) from the fact
ful influences all make for infla¬
that, while creeping inflation
tion, why has the rise in prices causes some injustice, it does not
been so gradual? In the last three
create widespread and acute suf¬
and a half years the consumer
fering. and (2) from the fact that
so

below current market values,

far

to realize their
weakness because they shy away
tionists

gram

The Security I Like Best

veterans.

When

public understanding of the need
for; Ui S.!-participation > ill / the
Agreement? The Council said its
proposed "Mr. GATT" should be
of high reputation and might well

Continued from page 2

Thursday, November 20, 1958

...

(2116)

common

"•

of
-

10
-

„

cents par
,

Richard H. Monaghan
H.
Monaghan passed
Nov. 10 at the age of 67 fol¬

Richard
away

lowing

affiliated
Co..

long illness. He had been
with

A.. M.

Inc., in Newark.*

Kidder

188

Volume

Number 5796

The Commercial and Financial Chronicle

rate

Current International Economic Events

(2117)

40%

trade is

Reviewed by Bankers'

Group

all

per

About

up-to-date analysis of world economic events and our for¬
eign economic policy are covered in a report by ABA to its

1952.

America's

•

Our

takes

place with four
Argentina, Brazil,
Uruguay. Except for

countries

.since

with the Bloc. Nearly

now

year

Latin

tible

them

particularly

Soviet offers

The Treasury in its refunding operation decided to stay to the
conventional, when they offered the holders of the December ma¬

suscep¬

turities

a package deal.
The short-term issue, the 3%% certificate,
priced at 99.95, to yield 3.43%, was made to order for the Federal
Reserve Banks, the largest owners of the maturing issues.
The
other obligations in the option, the 3%% note, due May 15, 1961,
priced at 99yg, to yield 3.68%, is expected to have appeal for those

bilateral

trade agreements.
Most

United

the

proposals for change reserves only temporarily
foreign economic and briefly."

new

States

policy have meant bad hews for
United States taxpayers and con¬

;

who

sumers

will have

J,,

the

pay

r cording

the

the
world may have
major turning point in
postwar
exchange
arrange¬

conse¬

international

"The

ABA

Mitchell

member

William
the

banks

Mitchell,

Central

Cincinnati,

44-page

British

position has been

Trust

Ohio,

tinue

report

prepared

Committee,

reserves

expand,

con¬

adequate

to finance this trade must

forthcoming.

At present, they

say, sterling finances up to 50%
of world trade, although backed

only about

of world

economic

the

ABA

(1)

Price of Gold

European Economic Developments

and

"Attention has been focused

Commenting on economic de¬
velopments in Great Britain and

the price of gold in recent months,
not only because of British ideas
Europe, the ABA Com- about international
liquidity, but
mittee points out: "The overstrain
also because of the large gold out¬
of recent years is being left be¬
flow from the United States. Dur¬

hind.

With
adverse
speculation
against the pound ended for the
present, sterling is strong as Brit¬
ish gold and dollar reserves have

risen

sharply. The holdings of the
British
Exchange Equalization
Account climbed from $1,850 mil¬
lion at the end of

September, 1957

$3,084 million at the end of
July, 1958, an increase of- about
$1 billion above the $250

million

borrowed from the Export-Import
Bank in October.

.."Aided

favorable

terms

ing the first half of the year, the
United

thus
in

lost about $1.2

States

lion of gold.

lowest

level

those

raised

were

innovations

accord¬

capital

sum;

for

reasons

the price of gold.

bring speculative gains to
abroad
who are
hoarding

themselves with money and tech¬
nical help coming from the gov¬
ernments of interested countries
like

the

United

million

$600

States

from

and

annually
billion.

gold

and

Bank and the establishment of

Development

changed,

ciation

fallen

World

Bank;

United

States

subsidiary of the
precedent-breaking
participation in in¬

stocks at $8

but import prices have
'/Perhaps the most telling of
10%), Britain may in these arguments against raising
1958 have a balance-of-payments the
price of gold is potential in¬
surplus
exceeding
the
existing flationary impact."
postwar record of £300 million
by

achieved in 1950. After three years
of inflationary pressure, the gov¬

•

ernment appears to

have succeeded

in'

halting the wage-price spiral
reducing production ap¬
preciably, and now has shifted its
emphasis
towards
measures
to
without

I
,'t

keep
a

production

offsetting

small decline in domestic spend¬

ing.

when

the

Union
year,

was

'■*

European
extended

$446

than

ceiling
>and

countries

credit

whose

exports,

raw

prices

mate¬

have

nomic hardship.

"Falling commodity prices raised

French

fears in Latin American producing

succeeded
on

and

another

com¬

ago.
Devaluation, a
budgetary expenditures,
imposition of stringent

controls

food

sible during the past year for eco¬

for

million

versing the drain

declined sharply, has been respon¬

year

the

example, "heavy re¬
Latin American

many

problems

For

mid-1958,

German surplus of $976
million.
Economic
problems are
reputedly not of great interest to
General DeGaulle, but they may
yet decide his future. France is
once again faced with an impend¬
ing foreign exchange crisis and
the
prospect of new price in¬
creases. Prices are now 10% higher
pared to

areas.

liance

re¬

foreign

ex¬

countries

will

that

the

United

States

impose additional import

strictions

the

which it is also

re¬

commodities

stability to

basic

particularly coffee;

commodities

relaxation

Europe, but

strictions

Communist
wide

study

vestments

change

Latin

difficulties."

were

quick to

The

S. R.

ap¬

purchaser for coffee,
wool, copper, meat, and hides, and
to install industrial capacity such
peared

tin smelter for Bolivia.

"Soviet

corporate fund raising until at least the latter half of 1959, and it
even be later than that.
On the other hand, the offering of

might

tax-exempt issues is expected to be pretty steady which means
plenty of these obligations around to meet the deqmand of those that are interested in this kind of obligation.
there will be

spite of the competition from the Government in the money

market, it is not expected that this will have too much effect on
the new offering of non-Federal obligations unless the Treasury
goes in for long-term financing, since the yield on Government
bonds is not competitive with the return available in. corporate
and tax-exempt bonds.

Bloc

trade

re¬

with

Favorable Money

Even though the

Latin

America has been growing at the

Market in Prospect

action of the

money market
sustained movement is
either direction for the time being, there could be
velopments as far as the short-term market and the
very

little in the

concerned.

way

And

this

could

when

come

the

indicates that
looked for in
favorable de¬
capital market

inflation

fear

psychology abates. It is evident that the fear of the future" pur¬
chasing power of the monetary unit, along with the talk about
devaluation of the dollar, is in no small way responsible for the
sustained upward movement of common stock prices. A booming
equity market, such as we have been having, is not conducive to
large-scale investment in fixed income bearing obligations, be
they Governments or others.
The fact that the Treasury has been able to finance

the raising
outside of the commercial banking system, even,
though these funds have been obtained by the sale of short-term
securities, is a favorable development. The deposit banks purchases
of new Government issues have been offset by subsequent sales of
of its

new

money

obligations to corporations, in this case, the ultimate investor.
supply has not been increased to any great extent by
the Treasury financing, and this is most certainly an anti-infla¬

these

The money

tionary measure.

Bloc; and a world¬
of United States in¬
looking toward

abroad

■

Chicago Analysts to Hear

Dempsey-Tegeler Branch

CHICAGO, 111.—The Investment t NORTH HOLLYWOOD, Calif.
&
Co.
has
Analysts SQciety of Chicago will ^-Dempsey-Tegeler
ures to stimulate a
greater private
have G. O. Trenchard, economist opened a branch office at 12333
flow of funds abroad.
of The Firestone Tire & Rubber Ventura
Boulevard
under
the;
"Too often in the past we have
Company,
as
guest speaker at management of Martin J. Haims.
been pushed from crisis to crisis
their Nov. 20 luncheon to be held
in

international

economy

meas¬

policy.

Perhaps this is because there is no
vocal

the

Adams

Room

of the

Mid¬

land Hotel.

constituency for foreign pol¬

icy such

exists for

other
One of

Kidder

branch office at

WASHINGTON, D. C.—Blair &
Incorporated has opened a

effective

Co.,
States

foreign

economic

branch

policy is the lack of public aware¬ ing,
ness

nomic

tainly

our

stake

stability and
an

functions

world

eco¬

progress.

office

economic
so

order

well at home

ject its strength and vitality abroad
as

well."

the

Barr

Build¬

management

South
a

Main

Street

securities business.

131 Fifth Avenue

management of Walter

Sade & Co. to Admit

GLOVERSVILLE, N. Y.—John
L.
Fanch has opened offices at
in

the

J. L. Fanch Opens

which

can pro¬

under

F. Lewandovvski.

Robert E. Schenck.

Cer¬

New A. M. Kidder Office
INDIALANTIC, Fla. — A. M.
& Co., Inc. has opened a

New Blair Branch

many

re¬

economic

Offensive

America's

Financing Expected

Government is going to play an important
part in the near future in the financial market through the raising
of new money and the refunding of obligations that will come due,
the amount of corporate securities which are likely to come into
the new issue market is expected to decline. It is believed in most
quarters that there will not be an appreciable pick-up in new

trade with the Asian

policy recommendations for

United
"The Soviets
act

bars to trade with the Soviet Bloc

aspects of national policy.

producer.

Economic

leading

certain

international

the chief obstacles to
U.S.S.R.

Asso¬

ternational studies seeking to for¬
mulate means of bringing more

price

Prices

Payments

its accounts showed

deficit

economic

massive.

Commodity

globe, the report notes that falling
commodity
prices
have
made
easier Soviet penetration of these

rial

"France's
are

Falling

Turning to the underdeveloped
commodity-producing areas of the

Continued Lag in Corporate

regional

The greatest beneficiary of
private capital; enlargement of the
an
increase in the price of gold
resources
ol;
the
International
would be the U. S. S. R. with gold
Monetary Fund and the World
production estimated as high as
gold.

Even though the

States

East development organi¬
to
be run
by the Arabs

zation

substantial

broad

of.

care

International

trade (export prices have scarcely

refunding operation of considerable size to be
evident that the Treasury is going to be a
regular customer as far as the money market is concerned in the
early part of the New Year.
taken

United

tution to which the United

contribute

year.

(rthere will also be

States foreign economic policy are
Administration support for an in¬
ter-American development insti¬
would

It is evident, however, that the Treasury
again during .the first three months of 1953
$2,000,000,000 and $2,500,000,000 of new funds in spite
of the money which will be obtained from the sale of the new
26-week Treasury bills. In addition to the new money which the
Treasury will have to raise in the first quarter of the coming year*

Recent Innovations
"The

Middle

strong

are

raising

would

the

11 years.

"There

not

sometime

for between

were

reduced

some

bil¬

Its gold stocks

services

ingly.

Western
'

auction method for its most recent

will be in the market

■'

214-day bill was substantially below the cost for the
price bills, which justifies the Treasury's decision to use the
new money raising operation.
It was again stated by Government officials that this recent
offer of tax anticipation bills raised enough cash to last until

set

in the United States.

United States paid some $3.1 bil¬
international
economic
rela¬
sources of the International Mone¬
lion in 1957 for the support of its
tions, is divided into seven sec¬
tary Fund, which could then share troops and military installations
tions reviewing: the state of world
with sterling
the burden of fi¬ overseas. Second, it granted some
-prosperity; economic developnancing much of the world's trade $2.6 billion of aid of various types,
v.'ments in Western Europe; inter¬
at moments of strain; or (3) The besides its direct grain shipments
national
financial
liquidity; re- dollar
price of gold should-be in¬ to its allies. Thus had it not been
? vival of the
gold question; financial creased. Neither the first nor the
for
United
States
military ex¬
problems of commodity-producing
third was acceptable to the United penditures and all forms of aid,
^countries; the Soviet economic of¬ States, but it decided to back and United States
exports might have
fensive; and United States foreign
had to decline by some $5.7 billion
urge 'the second.
'
*'
■■■.'*. V
policy.
in 1957 unless imports of goods
of

auction basis, compares with the rate of 3J/4% for the 219-day bills,
which were sold last month at a set, price.
The average interest

lion; but at the same time, for¬
eigners invested some $700 million

the United States export surplus,
therefore, lies in abnormal factors
which scarcely appeared in the
United States balance of payments
prior to World War II. First, the

for

i.-.'V

rate for the

$3 bil¬

over

the- demand for
continues to be very sizable. This
helpful to the Treasury in financing the

been very

Treasury Seen Regular Borrowing Customer

investment

situation, the Brit¬
suggested three alternatives:
There should be some device

"To meet the

con¬

ran

Because of the uncertain position

The Treasury sold $3,000,000,000 of 214-day tax anticipation
bills at an average price of $98.218,. or at an average cost of 2.997%..
The cost of this new money raising venture, which was done on an

imports of goods and
services by almost $6 billion. Pri¬
abroad in 1957

has

deficit.

exceeded

States'

the securities which

market, also the capital market,

money

demand

"The explanation of how foreign
nations got the dollars to pay for

serves.

the

"Exports of goods and services
the
United
States
in
1957

United

non-Federal holders

short-term liquid obligations

vate

termed the

coming due.

constructive force in the market.

has

States

re¬

underwriting the sterling sys¬
tem;
(2)
There
should
be
a
capacity in consideration
considerable expansion of the re¬

tinuing

Soviet

United

that if free world trade is to
William

en¬

serves

the

improve its foreign eco¬
nomic policy.
The need for so
doing is emphasized by an anal¬
ysis of the United States balance

financial

cooperation.

under direction of the

which

this

meet

operations.

there

supplement the main instru¬

ish

The

"To

are

The fact that the Treasury did not attempt an
extension of the public debt, but remained within limits which
were more or less expected by
money market specialists, was a

Our Foreign Economic Policy

and

that

and

ments

Chairman of the Committee.
•

;

quent need to be ready to amend

velopments," i6 being made avail¬

ments,

titled "International Financial De¬

Company,

uncertainties

that

grim." The

that
were

payments, which shows a con¬
tinuing
export
surplus
largely
maintained by U. S. Government

alternatives

President

the

moved to

its

"the

European Payments
"shaky."

offensive,

"The

gest

ciation. ''Yet,"

able

Europe, as well
underdeveloped countries.

appears

reached

the report ob¬

request.

growing trade offensive in

Western

other fac¬
tors, have led the British to sug¬

American

report,

the

"Russia has also been develop¬

ing

position, the fu¬

with the E. P. U., among

Bankers Asso¬

are

France's

connected

Advi¬

serves,

Union

sory Commit'•> tee on Special
Activities

large
debtor position and of Germany's
ture

ac-

to a
issued

"Zreport

result

extreme creditor

costs

involved,

Governments

By JOHN X. CHIPPENDALE, JR.

payments and exchange difficulties
make

Reporter

—

Cuba, and
Cuba,
these are
soft
currency
countries; and their balance of

members.
Items covered include U.S.S.R trade offensive,
plight of commodity producing countries, the gold price ques¬
tion, and European recovery and our balance of trade.

engage

WASHINGTON, D. C.—Sade &
Co.,

Investment

bers

of the

change,

Building,

mem¬

New York Stock Ex¬

Nov.

will

admit

Myron S. Heffter to partnership.

The Commercial and Financial Chronicle

(2118)

Continued

from

Growing Economic
Interdependence

page

growing economic interde¬
pendence of free nations poses

great problems, but equally great

opportunities, if the problems

Expanding Woild Economy
for sound industrial

associations

Such

development.
not incon¬

are

fact,

sistent with the U. N. and, in

contemplated in the charter

were

second

why

reason

are

beginning to move ahead
constructive direction is
that there has been a widespread
in

now

this

feeling that each new world crisis
is a special emergency, and has
to be dealt with on a brush-fire
basis. Once the fire has been put
out, the hope is that we can go
back
to
a
"normal"
existence.

all of our experience
the fact that such a

However,
points to
view

people now living

Latin

The forces

realistic.

not

are

not temporary

the

American

ing at the

ephemeral.

they

contrary,

very

are

industrial

the

time the growth

same

the industrialized
nations has been increasing about
in

production

with
year in the less de¬
Thus, the gap be¬

4V2% per year, as compared

only 2V2% per
veloped areas.

the two sectors of the Free

tween

will

World

Partly because we have thought
our
problems as special and

temporary,
we
have been too
much on the defensive. As is the
in football, a good

But

important.

defense is

winning com¬
offense

bination requires a strong
as

We have fallen short on

well.

that

for lack

score

national

coherent

with
respect to foreign economic mat¬
of

sense

ters.

purpose

up,

the

growth in

de¬

less

be speeded

and that this should take place
a
framework that
embraces

national independence and a max¬

individual

for

freedom

imum

development.
Of course, it is
equally important to the peoples
living in the less developed areas
that their growth should be rapid
and
include
these
two
goals.
fortunately for

Thus
a

basic

there is

us,

harmony of interests be¬
these

tween the United States and

nations, and this gives us a

free

for the future of the

great hope

that

States

United

the

economic

areas.

national in¬

It is deeply in the
terest

economic prog¬

developed

less

the

ress

nothing

widen

dene to accelerate

longer.

The

areas.

of the problem is shown
by the fact that in recent years
urgency

not

case

toward

road

veloped areas should

African

and

the

down

real, and they could be with us
for the rest of our lifetimes, if

Eastern,

Middle

Asian,

countries

dealing with in the world

are

1.1

the

rising production while maintain¬

of the U. N.

just

billion

the
in

Free World.

However, I believe that we can
regain the initiative by develop¬
ing a program which will bring
our
vast resources
public and
—

private, material and intellectual
-—to bear on the problem.
As I
shall indicate later, I think our
government has taken a series of
steps
in recent
months which
could

turn

structive.
has

ness

out

most

con¬

busi¬

American

And
a

crucial role to play in

cal and economic interests are re¬
inforced

nomic

fundamental

Both

facts.

and

the

eco¬

becoming in¬
dependent on imports

Western Europe are

creasingly

industrial

materials

raw

and

fuels

support continued eco¬
nomic development.
We already

import one-tenth of the raw ma¬
terials we use, and estimates are
in

that

1975

will

depend

helping to make these new pro¬
imports for 25% of our needs.
grams effective, and in helping to
The degree of interdependence is
bring about a conviction on the
even greater in the case of West¬
part of the American people that
sustained and imaginative foreign ern Europe and Japan.
The less developed areas have
economic
policies
are
essential
not only in our own interests, but the resources to supply an im¬
also in the interest of the peace portant portion of the raw ma¬
and well-being of the world.
terials and the fuels needed by
Before turning to a considera¬
the industrialized nations.
They
tion of the specific policies and turn, need to import machinery,
actions that may be involved in equipment and materials to sup¬
erecting a new structure for the port their own economic growth.
Free World, it may be helpful to Thus, today's world economic sit¬
review briefly the main features uation favors the emergence of a
of the world economy as they now pattern of trade that will support
the
appear.
development
of the entire
world economy (including that of
Reviews Main Features of
the Communist world if they are
World Economy
In

1956,

the

latest

which

estimates

production

services

ran

trillion,

one

billion
of

this

one

total

empire.

and

total of
hundred fifty

Free

tions accounted for
one-fourth

goods

the huge

dollars.

for

World

na¬

three-fourths

compared with
the
Communist

astronomical

These

fig¬

abandon their expan¬
and ideological
imperialism.)
But

our

current situation differs

fundamentally from that in the
past. In the pre-1914 period, the
less
developed areas exchanged
materials

raw

consumer

manufactured

industrial

the

for

goods like textiles from

world-wide

With

areas.

world's

one-fourth

population

lives

the

industrialized nations of the Free

$1,200 per
The U. S. figure is $2,500.

averages

year.

(2)

1.1

almost

billion people

(42% of
world population) live in the less
industrialized free nations where
production

per

person

averages

$120 per year^only a tenth of the
figure for industrialized areas.
(3)

The Communist Bloc

with

900 million

people produced $300
per person in 1956.
The feature that stands out in
these figures is the vast difference
between the level of production in

the industrialized

vides

oil

East

pro¬

excellent example of this
—the Free World needs oil from
that

and

area

is willing to

pay

against the
developed nations.
In eco¬
nomic terms, the immediate prob¬
as

less

lem of the Free World is to start

This

economic warfare

meas¬

prepared

was

Notes

preventing the Middle
going much farther in
aligning itself with the Commu¬
nist bloc.
Trade

is, of course, being used
increasingly by the Communist
bloc as a political weapon, and it
has been an effective weapon in
the

case

tries

few individual

of the Special
considered the
economy to measure

report

products.

and

World

Yet it is still

trade.

For

expenditures in the
addition

to
we

instance,

of the trade of the

less developed nations is with the

sify

mands

The
tion

problems to

ahead.
foreign re¬

can

afford

ucts

tem has ever succeeded in satisfy¬
ing all the demands placed upon
it, which is another Way of saying
solve our international problems. "
that every society faces a problem
We must seize the initiative by
of choice ampng alternative uses
adopting a forward-looking pro¬ of its
production.
However, our
gram to strengthen and develop
economy has the potential to meet
the Free World economy.
an
amazingly large share of the
In
recent
months, the United demands that confront it, if we

by and count on the fact of grow¬
ing economic interdependence to

continue

the whole picture,

clearly apparent that

now

embarked

that could lead to
a

however, it

workable

Free
be at

set of policies

our

objective of

structure for the

new

World.

have

may well
of the significant turn¬

one

so,

ing points of history.
Our

Four New

These

major

achieve

Nevertheless, I would argue that,
the United States should welcome *
-

high

that

eratively

with

have

four

have

will work

other Free

an¬

nations:

(1) To broaden markets by sup¬
porting the development of re¬
gional

economic

arrangements

wherever they can be set up on a
workable basis.

the

(2) To lower barriers to world
by

demands

new

This

would
the

meet

that

negotiating

av¬

for

for
aid

our economy.

possible to
urgent demands

most

make

face

increased

defense,

and

ex¬

foreign

domestic

pro¬

high

priority, and still
maintain the increase in the living
grams

standard of

our

families,

;

nothing au¬
tomatic about the process of .eco¬
nomic growth.
The report of the
Special Studies Project that I men¬
,

tioned

sets forth

series of steps

that need to be taken to reinforce
the

incentives
for

that

economic

encouraging

reciprocal

ment,

to 20%

saving

the

furnish
advance

and invest¬
initiative and

enterprise.

well

drive

toward

rising
typical

(This would achieve a free¬
ing of trade among all nations on
a

basis

that

generally

line

with

that
proposed for Europe
through the Common Market.) If
successful it will

the freer trade

mean

return to

had years ago;
increase the flow of in¬

(3) To

vestment funds from the industri¬

standards, today's
pattern
involves an ex¬
change of industrial raw materials
fuels for the machinery and
equipment needed by the less de¬
veloped areas to bring about their

world-wide and regional
ment banks; and

trade

This

has

shifting

pattern of trade
important bearing on U. S.

business.

About

10%

vate

particular emphasis on pri¬
investment, by setting up

(4)
nomic

industrialization.

own

with

total

our

production of durable goods is sold
abroad. ..These sales provide the
margin between profit and loss for
many American businesses.
Ex¬
ports make up from one-fifth to

promote

develop¬

the

Monetary

Fund

efforts to

greater

eco¬

International

and

supporting
stabilize prices and make

currencies

objectives will
require long, detailed and compli¬
efforts.

one-third of total American sales

present, we are
at
the
stage of preparing
working drawings for the neces¬

sary new

civilian

steel

aircraft,
machinery and

chines; and

than

sales of trucks, diesel

machinery

and

textile

structure of Free World

economic affairs.
is

most

tenth of

machine
a

tools.

vital in¬

expanding world

econ¬

omy in terms both of markets and
raw

still

materials supplies.

Yet I believe it

significant

embarking .
engines, farm imaginative

Business, therefore, has
terest in

and

sewing ma¬

institutions

that

agressivc

program to

that

could

Moreover, American business has
our

large stake in the success
foreign economic policies.
tend

in this
country, the importance of foreign
trade to the vitality of our econ¬
overlook,

Few realize that about 4V2

omy.

rectly dependent
for

their

are

and

build the
contribute

are

di¬

foreign trade
We import
variety of metals
on

livelihoods.

half

or more

and

minerals

States

essential

industry.
our

Last

the

incentive

required to

pro¬

this result.

duce

Handling

Our

Inflation

Problem

I know that fears have been ex-T

pressed that the rapid rise in our^
labor costs may

price

Amer¬

many

ican

goods out of world markets.'
And, indeed, if our nation suc¬
cumbs

inflationary

that will

not be

otherwise.

this

the

one

case,

pressures,

it needi

but

To my

basic

mind,:

reasons

why we must continue to press forpolicies that will contain inflation;
how

Just

this

can

be done

too

complex a problem to go into fully
here. The control of inflation in¬
volves

appropriate monetary and
policies, together with
greater restraint in the wage bargaining process than has been dis¬
played in recent years.* I believe
we
must intensify our efforts to
avoid inflation if our economy is"
to

and prosper.

grow

tent that

have

To the

ex¬

fail to do so, we will

difficulty selling
But, I believe, the remedy

abroad.
lies

domestic

efforts

reduce

and

year,

abroad

estimated at $32 billion.

Moreover,

both

our

fight inflation.

Our

so¬

measures

competition through such

devices

tariffs and quotas.

;

The

broadening of regional mar¬
kets that is now underway should
lead to a greater expansion of the
world
than
So

economy

would

long

take

and

world

trade

otherwise^.

place

the U. S. continues to

emphasize basic research and the:
development of new and improved
products, and
age

cies
to
of

so long as we man¬
keep inflationary tenden¬
control, we can hope

under

share in the general
world trade.

expansion
•

Other Changing Trends

the

billion. In ad¬

subsidiaries

trade

and

foreign investment have;been
increasing rapidly in recent years.
In fact exports and imports have
grown more rapidly than the total
economy.
Our private foreign in¬
our

second

that

likely

implication

the

trends

world

of recent

is
private investment is
need to continue its
economy

growth

abroad.
Many products,
particularly in machinery lines;
we have been exporting may
well have to be produced abroad
that

the

future

are

retain

our

foreign markets. Also our ex-*
panding need for imports of raw:
materials points to an
increasing;

vestment doubled in 1956 and 1957,

foreign

reaching an annual rate of almost
$3 billion.
Interestingly enough,

them.

that this

that

growing contribution to the econ-;

new

policies

approach to
was

our na¬

foreshadowed

rate

increased

importantly to growth and pros¬
perity throughout the Free World.
Incidentally, I might point out
tion's

United

dition, the overseas sales of the
2,500 U. S. companies with
were

com¬

petition that characterizes Ameri¬
can
industry has provided much

exports of goods and

services totaled $26

branches

rest of the world. The intense

restrict

great part
responsibility for maintain¬
ing the dynamism of our economy.
very

and
thus

lution does not lie in

of the

value of

convertible.

To achieve these

cated

have

million American workers

stability by increasing the

resources

Businessmen

our

well

Foreign Policies

encourage
greater competi¬
throughout the world. One of
has been
ability to improve products,
reduce costs at a pace that,
far, has exceeded that in the

traditional strengths

our

costs and develop new products as"

Businessmen's Stake in Our

years.

and
tion

fiscal

Of course, there is

drive
trade

annual increment in produc¬
tion of $20 billion to apply against

coop¬

World

should

decade

erage

economic

Policies

4we will have

average

penditures

policies

new

objectives.

nounced

the

competive in the U. S.
possible that many
difficult adjustments may lie ahead;
in specific instances.
v

rate

prod¬

some

exporting. In ad¬
foreign products will

now

market. So, it is

series of

stitute

are

become

new policies that con-,
fate of economic growth.
major change in direction
We are fortunate in that our
in our foreign
economic policy.
economy has always been a growth
These new policies have received
economy. For decades our produc¬
little public attention since they
tion has followed an upward trend
have
been
announced
piece by
involving a long-term growth of
piece, and since little action has
3%-4% per year.
If our growth
as
yet resulted. When you look
a

pose^

many

No economic sys¬

However, we cannot stand idly

can

dition,

all

meet

competi¬
will

It may

markets in the sale of

meet

ways.

But

markets

U. S. business-"
become increasingly,
difficult for us to compete in world,

face increased de¬

these demands?

world

goods.

consumer

intensification

men.

pressing needs in
such fields as: defense, education,
urban
redevelopment and high¬

Soviet bloc.

competition—particularly

textiles and other

years

these

the

impact on U. S. exports. The
expansion of industry in the less
developed nations will also inten¬

quire some increase in government

quirements,

are

For-

coun¬

relatively far less important than
Free

well under 5%

our

markets

competitive.

development over.i
of a unified
embracing ; the
Western
European nations is bound to havq <•

and abroad.

world

example,

to the new commitments and
obligations it confronts at home
While no precise cost
estimates are available, it is clear
that the new foreign economic pol¬
icy we are embarked on will re¬

that

■;

market

Project

ability of

International

the next 10 to 20 years

Spending

cisive

from

«,

Competition

One

ob¬

this

made

Increasing
*

This Will Require '

Studies

East

can

becoming

Another

Yet

several

that

juncture.

of direction for national

fact, which is recognized
by the Arab nations, could be de¬

This

ure.

seems

servations

policy.

likely to

provide the full answer;

can

fying to those who worked on the
report that this effort appears to
have played a part in providing a

Admits

trends

these

are

affected by ' developments
throughout the world? Only time

discussing the issues that con¬

new sense

by one-fifth of private

front the nation. It has been grati¬

only justify the purchase of
an

report

panel of citizens of national stat¬
ure who spent two years studying
and

fair price for it, whereas the So¬
are self-sufficient in oil, and

oil

How

of the Rockefeller Brothers Fund.

viets

could

alized to the less developed areas,

World where production per per¬
son

Middle

contained.

the

find that:

Almost

handling, it could
give us an edge over the Soviets,
whose economy is far more self-

tariff reductions

basis,

skillful

with

mer

investment at home.

Free World tariffs in the next four

ambitions

living

may

(1)

are

fact,

sionist

have more meaning if
they are translated into annual
production per person.
On this

ures

willing to

for
available,
year

are

world

successfully.

States Government has announced

here that mutual politi¬

see

with

dealt

Report

Economic

This

American Business in

reduction

on
International
Policy issued last sum¬
by the Special Studies Project

the

Thursday, November 20, 1958

...

appears

maintained

this

year,

have

been

despite

investment
In

omies

produce

addition, I would hope

that business would make

the

less

an ever¬

developed

na-

Volume

188

Number 5796

The Commercial and Financial Chronicle

(2119)
tions by making sound
private in¬
in local enterprises.

Continued from page 5

vestments

69, down lo points; Youngstown
Birmingham at 56.5, down 3.5 points.

Finally, I believe that American
business

must

look

increasingly

outward at. what our
country is
facing in the evolving and rapidly

shifting international
must

take

"Steel's"

The State of Trade and

scene.

steps necessary to
remain competitive in world mar¬

upward in October to a record
rate, the Board
stated in its summary of business
conditions. Minerals

Personal incomes eased in

justments, difficult though they
ip^y be in specific cases, wherever

bles in key
new

encourage
economic
progress

tjpde and
throughout the Free World.

The

tive operation new
approaches to
the international
problems we face.
Difficult as
many of these prob¬
lems appear, I am confident that
American business and the Ameri¬

The October annual rate

Wage

automotive
served

see

the problem
act with

May

clearly, and

white

1Q2%%

and

yjeld 4.47%. The
award of the

petitive sale
gi 101.76%.
v

Net

underwriters

debentures at
Nov.

won

proceeds
from

bid

from

the

sale

the

expected

of,

pro¬

sale

1-5.94,604 shares of common stockby subscription to stockholders,
wilj

used

company's
tures

reimburse

treasury

made

tions

and

for

made

vances

the

expendi-j

for extensions, addi¬
improvements to
its

telephone plant, and to
by

the

repay

parent

debentures

deemable

Pfipes

are

re¬

optional redemption
from 107%%
to

ranging

pgr, plus accrued interest.
The Pacific

Telephone & Tele¬
graph Co., a subsidiary of Ameri-,
gap Telephone & Telegraph
Co.,
is engaged in furnishing commu-

nicgfion services, mainly local

and

tojl telephone service,
in Cali¬
fornia, Oregon, Washington and

tl]e northern portion of Idaho. Its
subsidiary, Bell Telephone Co. of
Nevada, furnishes such services in
Nevada.

Aug.

31, 1958, the
had 6,785,599 telephones
of which about 34%
were in Los Angeles and
vicinity
und about 23% were in San Fran¬
company

in service,

cisco and vicinity, and its

subsidi¬

ary had 47,246 telephones in serv¬
ing. Other communication services
furnished by the company include

teletypewriter

exchange

service

and services and facilities for
vate

line

teletypewriter

use,

pri-'
for

the transmission of radio and tele-

yjpion

programs

and

for

other

t For
the
eight months ended
Aug. 31, 1958, the company and its
subsidiary had consolidated oper¬

revenues

of $610,963,017 and

net income of $71,724,030.
At

Aug.

31,

1958, capital stock
and surplus, funded debt and ad¬
vances

from A. T. & T., as shown

the consolidated balance sheets
of the company and its subsidiary,
amounted to $1,385,112,263, $750,000,000 and $182,000,000, respec¬
op

tively,
stock

$nd

compared

and

surplus,
payable

notes

with

capital

funded
to

debt

banks, of
$728,894,723, $465,000,000 and $2,000,000 at Dec. 31, 1952.

assembly halt by Wednesday
slash in Chrysler Corp. car output

was

a 63%
18,500 two weeks

Wis.

limited

was

work

auring

recent

programmed for
Elsewhere

was

strike

underbody

American Motor's
assembly line at Kenosha,
operations contrasted to six-days
weeks.
Rambler production last week was

Studebaker-Packard's manufapturing site at South
Bend, Ind.
five-day scheduling the p.ast week contrasted to six days
the week before. However, volume remained
virtually the same,:
at the highest S-P rate in two
years.^** 1

Truck-making was slated for a fall-off last week to an esti¬
mated 23,250 units from the prior week's
24,838 total for two rea¬
sons

as
consequence of the Chrysler strike, which
snapped off
Dodge truck activity last Wednesday and a strike of International

that

halted

work

Thursday

morning

all

Drop to

estimated

was

exceeded

that

well that automakers

the

com¬

are

Car

the

industry hopes to turn out 600,000 cars* 90,000 more than it
planned originally. If the revised quotas are met, fourth quarter
production will be about 1,450,000 cars, the total scheduled before
"

December, 1955.

;

16,391

cars

revenue

2.4%

missile

development

machines.

and

busi¬

Loadings for the week ended Nov. 8, 1958 totaled 658,QQ6
a decrease of 17,493 cars, or 2.6% below the corresponding'
week, and a decrease of 114,764 cars, or 14.8% below the
corresponding week in 1956.
I
/ 1957

Car

Output Declined 3.5% J-»gst Week Due to a Strike at
Chrysler and Budd Company Plant

Passenger car production for the week ended Nov. 14, 1958,
according to "Ward's Automotive Reports,'? suffered a decline of
3.5%

as a result
of a walkout of white collar workers at Chrysler
Corp. and The Budd Co. plant at Gary, Ind., supplier of underbody

components for Rambler.
Last

with

week's

125,279

output

car

(revised)

totaled

the

production total of

cars and trucks amounted to 144,17(1 units, pr
decrease of 5,947 units below that of the previous week's
output,

upward

trend

reflects

Last week's

car
output dropped below that of the previous
units, while truck output decreased by 1,588
vehicles during the week.
In the corresponding week last.year
141,904 cars and 22,666 trucks were assembled. * '
Last week the agency reported there were 23,250 trucks made
in the United States. This compared with 24,838 in the previous
week and 22,666 a year ago.

week

4,359

Lumber

Shipments Dropped 5.6% Below Output in the
Week Ended Nov. 8, 1958

shipments of 459 reporting mills in the week ended
were 5.6% below production,. according to the "Na— *
In the same period new orders
were
15.9% below production. Unfilled orders amounted to 33%
of stocks. Production was 0.9% above; shipments 8.9% below and
new orders were 8.4%
below the previous week and 2.1% above
the like week in 1957.
8,

1958

Business Failures Declined in Holiday Week
Commercial

failures

industrial

and

Bradstreet, Inc., reports.

306

the

declined

274

the

240

1956.

comparable

Casualties
of last

were

week

Fewer businesses

year,

failed

moderately below the
but held above the

than in prewar

1939 when

308 occurred.

Liabilities

week's casualties
year

$5,000

involved

were

223

the

against 278 in the previous week and 269

Small failures under $5,000, dipped to 51 from 53, last

ago.

week, but exceeded the 37 of this size reported in 1957. Concerns
failing with liabilities in excess of $100,000 numbered 29, de¬

clining from 46 in the preceding week.

had lower tolls except whole¬
Retail casualties
dropped to 136 from 173, manufacturing to 41 from 52, construc¬
All industry and trade groups

sale

trade where

casualties

succumbed

Fewer

than last year in all lipes save wholesaling.

wholesalers was relatively moderate
among manufacturers and con¬

in contrast to noticeable declines
tractors.

Geographically, the week's downturn was concentrated in five

all that it lost during the

improved

to 31 from 21.

rose

from 55 and commercial service to 25 from 30.

tion to 41

authority believes the nation's

recovered

recession.
The

120,920 units and compared
previous week. The past week's

Fast North Central States
down to 12 from £2 and
New England to 11 from 26.
A milder decrease prevailed
the Middle Atlantic States which had 85 as against 106 in the
Tolls

fell

sharply

the

to 35 from 60, jn the West North Central,

•

one

weekly production

cars,

regions.

By the end of this year,

average

freight in the week ended Nov. 8, 1958

accessories,

industrial machine will have

below the preceding week.

The increase from 1957 among

ness.

121.1%.

distributed by the electric light:
ended Saturday, Nov. 15, 1958
kwh., according to the Edison:.

industry is leading the recovery among all
production industries, this trade magazine added. Tool and
die manufacturing shows "positive"
signs of climbing out of the
slump. "Average" activity is reported in appliances, automotive

The farm machine

aircraft,

*126.1% and pro¬
the actual weekly production

Loadings Declined 2.4% in the Week Ended Nov, 8

concerns

mass

electronics,

ago,

Although those plans may sound ambitious, the automakers
will pot be strained, unless the white collar strike which
began
at Chrysler Corp. last week is
prolonged.
They assembled 567,000 cars in December, 1957 and 682,000
cars

year

week

Loadings of

scheduling

output for the rest of the year.
Detroit boosted its
November production goal from 531,000 to 590,000. Next
month,

.•*

12,378,000,000
Output showed improvement the past week.
'
:
ended Nov. 15, 1958 output increased by 67,000,000 kwh. above that of the previous week and 425,0004100"
kwh. above that of the comparable 1957 week and
789,000,000
kwh. above that of the week ended Nov.
17, 1956.
For the

maximum

strikes cut October's output.

month ago the rate was

tons.

holiday week ended Nov. 13 from 331 in the preceding week, Dun

parable week in 1957 for the first time this year.
This trade
weekly estimated 145,000 auto assemblies in the week ended Nov.
15, as .against 141,902 in the comparable week in 1957.

selling

the

of steel

Electric Institute.

operations in motordom scheduled, the gap between 1958 and 1957
will continue to widen.

are

that

*124.8%

Electric Output Turned Upward in Latest Week

The key automotive
industry is responsible for the gain in
production, "Steel" noted on Monday of this week. With peak

cars

announced

average

tional Lumber Trade Barometer."

The industrial
production trend line compiled by "Steel"
magazine crossed the year-ago line last week for the first time in
over a year.
The trend line is based on the nation's steel output,
electric power output, freight carloadings and auto assemblies.

New

Institute
will

The amount of electric
energy
and power industry for the
week

Nov.

74.3% of Ingot Capacity

last week

Steel

Lumber

Output Scheduled This Week

Automotive production

and

companies

before.

IH factories.

Steel

Iron
steel

states "Ward's."

programs.

followed

workers

business

outlooks

Cincinnati, Cleveland, southern Connecticut, Indianapolis, Los An¬
geles, Milwaukee, Nashville, Tenn., the New York City area,

Providence, R. I. and New Jersey, Reporting less improvement
Chicago, Detroit and Ft. Wayne, Ind., although an upward

previous week. Meanwhile, mortality edged up during the week
in the South Atlantic, East and West South Central and Pacific
States.

Most

regions

suffered

failures

fewer

Only two, the South and East South Central
ceeding their 1957 levels.
'

than a year ago.

States, had tolls ex¬

were

Failures Turned Upward in

trend is noted.

Steel production was at its highest point of the year last week.
Steelmakers boosted their operations I point to 75.5% of capacity.
Production

castings,

was

the

about

2,039,000

net

tons

steel

for

ingots

and

largest

of any week since Nov. 3, 1957.
District
rates'were as follows: SL Louis at 99% of capacity,
up 3 points;
Detroit at 96, uo 1Q.5 points; Chicago at 88, up 5
points; Cincinnati
at

86,

78,

trict

down 0.5 point; Wheeling at 84.5, no change; Buffalo at
2.5 points; Western district at 78, no change; Eastern dis¬
72, no change; Pittsburgh at 69.5, no change; Cleveland

week

placed at 1,945,000 tons

the

car-making front, a generally strong pro¬
held forth.. General Motors planned an 11%
jump
in programming and Ford Motor Co.
looked for a 6% rise" over
the prior week. Both
companies had the majority of their plants
pace,

Harvester

the

ATndex of production is based
for 1947-1949.
*

five-day

Monday through Saturday

for

duction 2,026,000
was

com¬

arid

ago.

16% decline as a consequence of the
supplier
strike, which could continue to hamper activity this week.
duction

points

140,742,570 net tons compared with actual production of
74,5% the.

week

were

beginning Nov. 17, 1958, equivalent to
2,005,000 tons of ingot and steel castings
(based on average^
weekly production for 1947-49) as compared with an actual rateof 125.2% of capacity, and
2,011,000 tons a week ago.
*
Output for the week beginning Nov.
17, 1958 is equal to about
74.3% of the utilization of the Jan. 1, 1958 annual capacity of

$350,600,-

last week to set United States
"Ward's Automotive Reports" ob¬

peg,

aggravating the car-making scene
Co. plant at Gary, Ind., supplier of

Budd

purposes.

ating

result

or¬

telegraph Co.
The

The

ad¬

ganization American Telephone
.

com¬

tl>e debentures, together with
ceeds

the

authority attributed the setback to a walkout of
workers at Chrylser Corp., which
began Tuesday

ponents for Rambler.

at-

accrued'interest,

Further

$80,000,000 Pacific Telephone
& Telegraph Co. 32-year
4% % de¬
1990,

above

year.

trade

6,900 units from

The

again

American

capacity

soaring to a 1958 high of 125,279 car completions the.
production dipped 3.5% to an estimated
120,920

collar

noon.

Nov.

cropped

output back
Friday last.

morning of last week and led to

Halsey, Stuart & Co. Inc. and a
group of investment bankers yes¬
terday (Nov. 19) offered an issue

due

still well

was

down

price composite held unchanged last week
gt
buying of dealer scrap was restricted,.

scrap

operating rate

before,

This

may.

determination.

units the past week.

Halsey, Stuart Group
Sells Telephone Issue

bentures,

week

the politi¬

cal and economic front.

After

will not happen if we shrink from
active participation. in this inter¬

income

revised

and

Strikes

;

prosperity that would contribute
to the fulfillment of the
basic as¬
pirations of mankind.
But this

personal

the

62,

gross ton and mill

The

For the like week

$239,400,000,000 in September.

so, we can move on into
of world-wide growth and

both

after setting

salary disbursements, the largest segment of the
personal income total, dropped
nearly $800,000,000 in October to
an
adjusted rate of $238,600,000,000—even with the like
month
of last year—from

By doing

scene

result of labor trou¬

000,000 rate for the like month of last

can public
possess the ability and
the wisdom to meet the
challenge.

national

September
$357,800,000,000, the United States Department of Com¬
merce reported.
The agency, however, regarded the
decline as
within the margin for error and thus
termed it little changed from
the previous month.
total

closely with our government in
developing and putting into effec¬

era

October

durable/goods manufacturing industries,

seasonally adjusted annual rate
was
$357,500,000,000, down from

October

And

WO must be prepared to work more

in crude oil and coal
production.

highs for three successive months.

necessary

output fell

sligntly, reflecting curtailments

be willing to make individual ad¬

are

output,

however, continued

We must be alert to. oppor¬
tunities to expand our trade and
irxcrease our investment. We must
kets,

ihey

Industry

the glass industry which cut
output, production of durable goods
in October held level with
September. Nondurable goods

the

$42.33

October but

Liabilities Declined
Rising casualties among small trade concerns

boosted business

above the previous month and
13% above a year ago. This increase, which marked the end of
a decline in effect since April, occurred in nearly all lines of retail
and wholesale trade and in all save two of the major geographic

failures

regions.

1,271 in October, 22%

However,

the failure rate in
'

relation to the operating
Continued

page

The Commercial and

(2120)

year

Continued from page

;

year

ago.
Volume in children's merchandise
earlier.

stores

Furniture

relatively moderate—57 per 10,000
listed enterprises as against 73 in prewar 1939 and 14a in 1 J5Z.
Contrary to the upturn in number of failures, their dollar
liabilities continued down to $47,000,000, the lowest volume_this
year.
While businesses succumbing with liabilities under $5,000
climbed to a postv/ar high, casualties above $100,000 dropped to the
population remained

in 1958.

lowest level so far

' %"•/"

functions but were
accentuated in wholesaling and retailing by a marked upsuige
of 21 to 25% from October last year. Most of the wholesale rise
centered in building materials, while retail failures, higher than
1957 in all lines except drugs, increased most severely in general
September prevailed in all

Increases from

Manufacturing
and construction mortality remained about even with a year ago.
with the only noticeable upturns in tho machinery industry and
merchandise stores and

eating and drinking places.

general building.
In

the Mountain States, a

all regions except

September-to-

reported.

Oetober rise was

week in

index,

1.4% above the $6.29 of the

was

comparable date last year.
oats, barley, hams,
steers and hogs.

Boosted by
sugar,

the general commodity price level moved up fractionally
The daily wholesale commodity price index, compiled'

by Dun & Bradstreet, Inc., rose to 276.66 on Nov. 10 from 276.22
a week earlier and was,moderately higher than the 275.69 of the

increase

rose

both

appreciably, reflecting light offerings and an
domestic and export buying.
Although corn

receipts rose again, trading was sustained at a
increased somewhat.
There

high level and prices
boosting

moderate expansion in purchases of rye

was

prices slightly over those of tne prior week. Oats supplies were
steady in most markets and buying was unchanged; oats prices
were close to a week earlier.
Increased purchases in meat and
oil markets

boost soybean prices during the week.

again helped

Soybean offerings registered some declines during the week.

was

noticeably the past week,

reflecting

decline in offerings.

Export buying of rice climbed and domestic purchases were .sus¬
tained at a high level, but prices were unchanged.
The call for
coffee moved up
There

was

slightly resulting in
marked rise in

moderate rise in prices.
prices at the beginning of

cocoa

the

period, but they slipped somewhat at the end of the period.
The rise was due to substantial gains in trading. Warehouse stocks
of cocoa in New York fell slightly during tne week.
Arrivals
for

the

year

to date amounted to

2,238,708 bags compared with

2.808,720 bags in the similar period

year

ago.

during the week

noticeable rise

in wholesale

fish, fruit and

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Nov. 8,
1958 advanced 2% above the like period last year. In the preced¬
ing week, Nov. 1, 1958 an increase of 5% was reported. For
four weeks ended Nov. 8, 1958, a gain of 4% was registered.
the

from

trade

Retail

advanced from

sales

volume

New

the
For

1958 no change was recorded

1, 1958 to Nov. 8,
that of the 1957 period.

period Jan.

the past week

York City

above the comparable period a year ago,

1 to 4%

trade observers report.

holiday

1957

the

over-all

gains of about 10% above those
an

important part in the week's

prices

range

According to the Federal Reserve Board's index, department
sales in New York City for the week ended Nov. 8, 1958
showed an increase of 2% from that of the like period last year.
preceding week, Nov. 1, 1958 an increase of 4% was re¬
For the four weeks ended Nov. 8, 1953, an increase of
5% was noted. For the period Jan. 1, 1958 to Nov. 8, 1958 an in¬
crease
of 2% was registered above that of the corresponding
In

the

ported.

period in 1957.

prior period. Cotton buying was close to a week earlier. United
States exports of cotton in, the week ended last Tuesday were
This compared with 44,000 in the prior
week and 76,000 a year
ago.
For the season through Nov. 4
exports totaled 791,000 bales as against 1,235,000 in the corre¬
sponding period last year.

Registered Little Change Both for the \

Week and Like Period

Despite numerous Veterans' Day sales promotions, consumer
buying last week remained close to that of both a week earlier
and the similar period last year.

apparel,

linens

and

Year-to-year declines in men's
major appliances offset slight increases in

women's merchandise and furniture.
continued gains in

held volume
The

sales of new
noticeably below a

total

dollar

volume

Automobile dealers reported

but limited stocks
scattered reports show.

passenger cars,
year ago,

of retail

trade

the

period ended
Wednesday of the past week was from 1% below to 3% higher
than a year ago, according to spot estimates collected
by Dun &
Bradstreet, Inc. Regional estimates varied from the comparable
1957 levels by the following percentages: South Atlantic and West
South Central
States +1 to
+5%; East North Central, West

North Central
ana

and East

South

Central

+4; Middle Atlantic

Mountain —1 to +3; New England —2 to
-f 2 and
to —1%.

Pacific Coast

States —5

Increased

purchases of dresses and soortswear helped over-all
apparel edge up slightly over a year ago, off¬
setting declines in coats and suits. There was a moderate rise
during the week in' women's handbags, jewelry and millinery
sales

of women's

Interest
total

men's

last year.

men's

winter

suits

apparel volume

and

topcoats

somewhat

below

slackened,
the

The call for furnishings and sportswear

holding

similar
was

week

close to

They

with the floors!

collide

would

controls.

price

stand-by

prices in

need here for

Effect

C. P. I.

It would be hazardous to predict

prices
Price

how much these lower farm

will

suspect it will be quite
rising cost

Index.

Consumer

the

affect

moderate in view of the
of

food

distribu¬

processing and

tion.

Looking ahead to 1959 crops,
Agricultural Act of 1958 must
be taken into account.
This law

the

provides for

downward adjust¬

support

minimum

the

ment

level for cotton over the next few

and permits individual cot¬

years

ton

to increase
their
in exchange for lower
prices,
In the case of

growers

acreage

support

farmers are given an option
the present support sys¬
production control or to

corn,

retain

with

have

production control with

support prices set at 90% of the
average market price Of the pre¬
.

vious

three

Corn farmers

years.

expected to favor the latter
they vote Nov. 25.^ Other
feed
gains are to be supported
at fair and reasonable levels in
relation to corn.
The 1958 legis¬
lation makes no change in sup¬
when

ports for wheat, tobacco,

peanuts

dairy products. While the new
provisions are a step toward even¬
tual free markets for agriculture,
the immediate effect on the Fed¬
or

uncertain.

Treasury

larger

could cost more to support

at lower prices.

crops

general economic out¬

the

Outlook

Economic

General

look, I expect a moderate advance
on
a wide front.
State and local

continue to
defi¬
officially estimated in Sep¬
should

expenditures

While the Federal

increase.

cit

now

it will

looks too high,

substantial and part of it

probably be financed directly
indirectly by the commercial
For the longter-term, gov-;

will
or

Private

banks.

Enterprise Is

high

The Salvation!
"The committee noted that

the

tance

the

have

area

member countries in

increasingly recognized the impor¬

of private

investment and have encouraged

ital

this growth is the role of

technical and managerial
by the countries of the region.

together with the

skills

tract

needed

There is

increasing awareness of the need to at¬

committee

noted that

by far the greater

devel¬
opment of South and Southeast Asia has come from
part of the economic resources devoted to the

the
do

countries

of the

area

so."—Consultative

expect to see inventory liqui¬
dation come to an end in the next
I

few

have

been

is difficult to know
trend is in in¬
ventory levels. On the one hand,
It

rapidly.

what the long-run

and would

continue to

for

Committee of the

Columbo

cooperative

development in

South and

Southeast Asia.
We

operations

some

higher

have

the hope

that there is

facts. We
a

may

also

express

better understanding than

one.

and

fixtures, towels,

com¬

colored
paper,

toothpaste.

sizes instead

Increased variety

neces¬

higher inventories.

would

tional

days

color

many

cars

and even striped

sitates

hand,

white bathrooms.

Coke comes in three
of

sometimes exists of what it is that attracts private

capital.

bathroom

simple

the

from

black Fords and
Now

discourages
other

getting farther and farther

are

away

automation, and
the

in¬

in-process

cost

money

inventories.

have

research.

eliminated

soap,

hoJ>e that the optimism of the committee is

well warranted by the

control
accounting and

better inventory

have

through improved

binations

Plan

Inventory-sales ra¬
improving very

months.

ventories through

foreign investment.

"The

of wide renown.

economists

tios

growth of the private sector.

"Important also in

spending will stay at a
level
since
the familiar
groups who have advocated more
spending
of their* own and/or
other
people's money can now
turn for support to some academic
ernment

foreign private investment which can provide cap¬

Year Ago

There

1959.

tember

and finished the week slightly lower than in the

Volume

toward somewhat lower

still

estimated at 54,000 bales.

Trade

food

store

the New York Cotton Exchange moved within

toes.

showing.

slightly from the prior week.
Cotton

corn,. wheat^and pota¬
Thiis, in nearly all the major
groups
the trends will be

soybeans,

eral

played

and

trading boosted steer prices during the week. Hog receipts
were up slightly and prices were close to a week earlier.
There
was a substantial gain in the buying of lambs and prices moved

narrow

supplies and lower prices are also
prospect for cotton, cottonseed,

a moderate decline in orders for
vegetables last week, buyers being more
foods. There was an appre¬
ciable rise in the call foy butter, cheese and eggs. Purchases of
fresh meat and poultry were sustained at a high level.

canned

interested in fresh produce and frozen

Although cattle receipts advanced somewhat in Chicago, in¬

income from these sources. Larger

tem

creased

Outlook
production or income of
dairy farmers. Poultry and egg
producers are sending increased
supplies to market and the out¬
look is for a slight reduction in
milk

wholesalers reported

Food

Armistice Day sales showed

Although trading remained close to the prior week, flour prices
rose

Agricultural

are

grain prices climbed steadily upward during the week.

Most

from page 16

Food and

slipped fractionally.

last week.

Wheat prices

While

somewhat with principal gains in occasional tables and
chairs, case goods and bedroom sets. The call for television sets
and lighting equipment climbed again, while volume in refrigera¬
tors, dishwashers and automatic laundry equipment was unchanged
from a week earlier.
A. slight week-to-week increase occurred
in sales of linens and draperies, but trading in floor coverings

slight gains in prices on grains, flour, livestock and

' '

exceeded that of a year ago.

moved up

Latest Week

comparable date last year.

and man-made

of wide industrial fabrics

purchases of gifts, china, silverware, glassware ancl kitchen utensils
with volume up slightly from last year.
Interest in furniture

Commodity Price Index Rose Fractionally
In

worsteds and volume in carpet wool
There were substantial

week earlier.

Volume moderately

There

wholesale level.

general trend of food prices at the

Wholesale

level of

print cloths climbed appreciably, sales of broadcloths
sluggish again. Incoming orders at dying and
finishing plants rose somewhat.

represents the sum total of the price per pound
foodstuffs and meats in general use and its chief function

is to show the

Continued

stepped up
their orders for women's spring coats, suits and dresses.
Volume
in fashion accessories matched that of a week earlier and sales
slightly exceeded those of a year ago. Retailers sought winter
dresses, lingerie and sweaters to replenish depleted stocks and
prepare for the Christmas selling season. While the call for boys'
clothing noticeably exceeded that of last year, interest in men's
apparel showed no year-to-year change. There was a slight rise
from the prior week in bookings in men's and women's shoes.
Over-all textile trading and output expanded somewhat during
the week. Boston and Philadelphia mills reported moderate gains

and sheetings were

index

of 31 raw

interest in canned
Fractional increases

interest in

Higher in wholesale cost were wheat, corn,
bellies, cottonseed oil, cocoa, eggs, potatoes,
Lower were rye, lard, sugar and lambs.
The

week.

by openings in many markets, buyers

Attracted

fibers.

compiled by Dun & Bradstrect, Inc., rose from the prior week.
On Nov. 11 it rose to $6.38 from $6.33 a week earlier for a gain of

buying of dairy products, frozen

produce the past week, while

goods was unchanged from the prior
occurred in fresh meat and poultry.

gains in the buying

the wholesale food price

a row,

moderate pick up in purchases

Housewives stepped up their
foods and fresh

remained at the

Fourth Consecutive Week
For the fourth

reported

matched that of a

chairs, occasional merchandise and bedding. Volume
slightly exceeded that of the comparable week last year. Although
interest in floor coverings was up substantially from a year ago,
sales
linens and draperies were down somewhat. There were
moderate year-to-year dips in television sets, radios and major
appliances.

in transactions in woolens and

Scored Gains for

Wholesale Food Price Index

0.8%. It

Thursday, November 20, 1958

...

of upholstered

Trade and Industry

The State of
business

Financial Chronicle

guess

Product

that Gross Na¬
in

1959

would

.Volume 188

Number 5796

The Commercial and Financial Chronicle

(2121)

The following statistical tabulations

of Current

latest week ormonth available/

Activity

week
Latest

Indicated Bteel operations

Equivalent to—
Steel ingots arid castings

(per cent capacity)

—Nov. 23

Week

AMERICAN IRON. AND STEEL INSTITUTE:

month ended

Week

§74.3

Montb
Ago

*74.5

ALUMINUM

(net tons).

—Nov. 23

§2,005,000

*2,011,000

2,026,000

1,945,000

oil and condensate output—daily average
gallons each)—.
stills—daily average (bbls.)
Gasoline output (bbls.)—
—±
<
Kerosene output (bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
:
;
Crude
42

7,003,385

6,911,385

t7,686,000

7,752,000

—Nov.

27,654,000
2,286,000
12,352,000

27,400,000
2,144,000

_Nov.

-Nov.

26,224,000

2,262,000

1,934,000

12,292,000

13,039,000

Total gas sales (M therms)
Natural gas sales (M.therms)

11,870,000

7,540,000

Nov.

6,849,000

7,123,000

6,613,000

32,369,000

172,914,000
31,364,000

—.Nov.

165,354,000

158,742,000

173,963,000

—Nov.

68,095,000

166,414,000
*68,198,000

68,996,000

59,338,000

——-.Nov.
connections (no. of cars)—Nov.

658,086

674,477

686,138

675,579

571,850

556,584

569,817

AMERICAN HOME

180,805,000

—.Nov.

168,476,000
32,374,000

586,364

Residual

—

fuel oil

(bbls.)

at—

CIVIL

CONSTRUCTION

ENGINEERING

construction

Nov. 13
Nov. 13
——-Nov. 13

73,961,000
147,509,000
125,419,000
22,090,000

8,530,000

*8,540,000

3,715,000

9,519,000

419,000

386,000

457,000

148

♦136

147

-Nov. 15

12.378.000

12,311,000

12,048,000

11,953,000

DUN An
i—-Nov. 13

274

331

288

306

Nov.

—Nov.

INDEX—FEDERAL RESERVE

AVERAGE

SYSTEM—1947-4!)

152,699,000
220,289,000

Nov.

INSTITUTE:
000 kwh.)—.——.—.

EDISON ELECTRIC

-Electric output (in

INDUSTRIAL)

(COMMERCIAL AND

FAILURES

BRADSTREET, INC.

—

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)
—

Pig1 iron (per gross ton)—
Scrap steel (per gross ton)

Nov. 11
Nov. 11
Nov. 11

——

•

.————-—

Lead .(New

IZkic (delivered) at—
"JSinc (East St. Louis) at_—
'Aluminum (primary !pig. 99% )
tin

Straits

(New York)

COKE

Oven

COTTON

CROP

6.196c

$66.42

$42.83

$42.50

Crop

5.967c

$42.33

$33.00

23.700c
13.500c

Other

Oats

Flaxseed (bushels)
Rice
(100-lb.
baasV-ii.--

24.700c

24.700c!

26.000b

95.875c

89.750C

Cotton

87.90

88.35

89.36

90.06

89.92

94.71

92.93

93.08

91.62

89.92

89.37

88.81

84.04

83.79

83.15

81.29

•

87.86

87.99

87.59

89.51

92.64

92.35

——Nov. 18

3.56

3.62

3.57

3.42

Nov. 18

4.40

4.41

4.42

4.49

4.09

4.10

4.08

4.09

92.79
'1

91.19

—

4.21

4.20

4.46

4.88

4.93

5.08

.4.57

4.56

4.59

4.66

4.39

4.43

4.45

4.49

Nov. 13

4.23

4.25

4.22

4.33

—Nov. 18

395.3

396.4

390.8

Late

4.50

4.86

_Nov. 18

387.4

—_

Nov.
.—Nov.

Nov.
Nov.

—

——

8
8

345.836
311.196

296.458

324.112

308.795

317.807
95

466,878

Pears

485,369

Nov. 14
ACCOUNT

FOR

109.48

108.69

109.27

109.60

Total purchases——
Short sales;———.—;—

tOfbet sales.—

Oct. 25

561,150
2,194,000
2,755,150

—Oct. 25-

__—

—

Totai sales

2,684,510

Oct. 25

_————

2,469,550

3,633,670
782,800
"

2,821,550

493,150
1,913,470
2,406,620

Oct, 25

—_—_—

Total

sales

—

..—..

Other transactions initiated

104,700
756,320

861,020

2,410,820
3,150,500

739,680

Other sales-

sales

Total

165,630

1,050,780

Oct. 25

4,666,950

STOCK TRANSACTIONS FOR ODD-LOT
LOT

—

Odd-lot sales by dealers
Number of shares

5,975,180
1,075,330
5,236,350
6,312,080

3,932,189
686,020
3,410,664
4,097,584

4,243,160
1,030,410

——

noa
Odd-lot purchases i-.tr
by

HphIptr

(customers'

1,553,096

$70,838,537

Oct. 25
Oct. 25

1,672,709

1,579,985
$73,873,406

1,530,617

Dollar value

Round-lot sales by dealers—
Number of shares—Total sales—_
Short sales

1,649,516

1,624,854

Other sales

Round-lot purchases by
Number of shares.

dealers—

10,673

6,252

1,638,843
$78,194,301

1,618,602
$75,586,968

567,270

576,230

543,880

298,590

5~67"270

576"230

543~880

29~8~590

Oct. 25

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):
Total round-lot sales—
Short sales
———
-—Oct- 25

——-—-—Oct. 25
Oct. 25

sales

455,820

512,170

445,170

1,298,350

(per

§ Cadmium

$71,874,869

97%

*Nickel

MOTOR

1,566,810

19,953,420

24,810,340
26,164,650

18,799,540

29,634.830

19,658,280

22,201,640

21,055,820

DEFT. OF
.

VEHICLE
IN

Farm

118.8

118.7

118.8

117.8

.Nov. 11

products.

£89.836

£71.855

£90.455

£74.576
10.838c

10.000c

11.338c

10.500c

£70.467

£65.031

£73.086.

£69.492

£65.389

£73.372:

lO.OOOd

89.966c

75.881d

78.720d

$2.80328

$2.78509

96.558c

93.975c

90.602c

93.385c

$35,000

$238,200

$244,750
36.590c

32.590c

29.000c

29.500c

33.500c

$57,000

32.590c

29.000c

$59,720

$84,000

$1.45000
$1.45000

$1.52600
$1.52600

33.000c

$1.70000,
$1.70000

$1.45000

$1.52600

$1.70000

$2.00000

$26,800

$28,100

$24,700

35.250c

74.000c

$2.25

331,817

179,585

417,936

261,950

131,945
47,425

327,733

69,737
130

215

-245

31,675,000
34,189,000
*27,883,000

30,884,000
30,511,000

24,449,000
98

104

SALES

$26,000

FROM

S.—AUTOMOBILE

MANU¬

ASSN.—Month

Number of passenger cars
Number of motor trucks
Number

88.673c

$232,769

—

FACTORY

October:

—

motor coaches

Production

.NOV. 11

commodities—-

13.800c

—

89,958

(BUREAU OF MINES)—

Month of September:
-

Commodity Group—
All

10.672c
£70.523

—

(per

PORTLAND CEMENT

WHOLESALE PRICES, NEW SERIES—U. S.
LABOR— (19*7-49 =s= 100):

—

pound)

(per

FACTURERS'

858,740

14.000c

12.442c
£74.049

Total number of vehicles—

1,354,310

£197.256

10.872c

PLANTS

1,102,400

£209.426

12.642c

77.989d

pound)

grade

—-

Bismuth

23.926c

£193.935

£229.772

pound—ounce ton)
Aluminum, 99% grade ingot weighted average
(per pound)
Aluminum, 99 % grade primary pigMagnesium ingot (per pound)—
—

26.435d-

25.489c
£209.313

(per pound)—

Cobalt,

26.081c

28.573c

—

(per'ounce)—

fCadniium

46,347
1,602,952

10,122

1,662,587

•Other sales

27.310c

(per ounce)

Platinum, refined (per ounce)
tCadmium, refined (per pound)

——

173,400

240

£236.288

Antimony (per pound), boxed Laredo———

1,645,299

$76,078,809

Oct. 25
Oct- 25
-Oct. 25

—

York

—

$110,734,130

Oct. 25

other sales

1,050
141,350

31,676

QUOTATIONS >—

Sterling Exchange (check)
Tin, New York Straits
•
Gold (per ounce, U. S. price)
Quicksilver (per flask 6f 76/pounds)
1! Antimony, New York, boxed
Antimony (per pound), bulk Laredo

2,657,011

$72,642,126

Oct. 25

Customers' short sales.
-Customers*

.1,076

6,750
15,497

Sterling Exchange—

Silver, London

sales)—

dealers (customers' sales)—
total sales

Number of orders—Customers'

M. J.

New York

Silver, New

———

(E.

—

Oct. 25
——Oct. 25

—

190

1,108
170,500

ftLondon, prompt (per long ton)
i (Three months, London (per long ton)

Silver and

3,632,515
4,662,925

ACCOUNT OF ODDN. Y. STOCK
COMMISSION:

(customers' purchases)—t

Dollar value

Total

909,975

AND SPECIALISTS ON
SECURITIES EXCHANGE

DEALERS

EXCHANGE

117

(barrels)

Zinc (per pound)—East St. Louis
gSZinc, prime Western, delivered (per pound)
ffZinc, London, prompt (per long ton)—
ttZinc, London, three months (per long ton)

for account of members—

—

(5 States)

(per pound)
Common, East St. Louis (per pound)—

744,345

2,599

186

—

(pounds)

Common,

904,030

129,770

875,004
1,004,774

847,530

2,809

186

117

—

602,450

786,759

3,819,420

40,135
118,548
62,335

2,903
(tons)(tons)

686,190

196,330
1,407,890
1,604,220

4,442,869

50,845
126,813
72,089
29,564

18,053

1,660,553

l.ead—

1,306,790

Oct. 25

47,611
125,338
71,616
29,064

125,100

181,680

Oct. 25

(bushels)—...;

477,350

869,100

—

14,7.93

517,580

987,739

—

1,750,698
7,332

15,015

64,000

Oct. 25

—

.106,981
239,539

259,046
18,315

1,771,679
7,332

622,190

-Oct. 25

Oct. 25

Total purchases
Short sales

176,575

4,408

18,268

675,880

.Oct. 25

Total round-lot transactions

9,047
32,209

;

1,030,670
1,126,870

•-

sales.

11,006
35,880

6,790

Copper—

■

Oct. 25

30,104

34,940
176,345
257,876

1,034,720
96,200

—

Other sales

4,780
3,904
26,901

4,780
26,901
11,006

Domestic refinery (per pound)—
!
Export refinery (per pound)■IfLondon, prompt (per long ton)
ft Three months, London (per long ton)

2,798,190 •
3,580,990

off the floor—

Total purchasesShort sales
Total

770,620

—Oct. 25

—

Oct. 25

—

Other sales

3,270
479,841
1,445,110

October:

Other transactions'initiated on the floor—
Total purchases
Short sales

560,776
1,796,785

(bushels)

METAL PRICES

—Oct. 25

Pecans

DEBS. EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions.' of specialists in stocks in which registered-

4,852
15,771

2,353

summer

Cranberries

MEM-

10,964

18,806

3,904

Grapes (tons)
Cherries (12 States)
Apricots (3 States)

•OIL, PAINT AND DRUG REPORTER PRICE INDEX—

561,977

2,353
572,586
1.849,385
•

25,754
43,130

18,695

;

(tons)
(pounds)
Apples, commercial crop
Peaches (bushels)

.94

427,573

69,092
22,087

;

5,303

Hops

287.763

11,313

64,870
23,849

Broomcorn

281.322

460,078

121,402

10,641

23,849
5,434

Total

ASSOCIATION:

4#4» AVERAGE = 100
BDUND-LOT TRANSACTIONS

Sweetpotatoes (hundredweight)
Tobacco (pounds)
Bugarcane for sugar and seed' (tons)
Sugar beets (tons),
-

—

118,471

'47,637
607,118

summer

Fall

26,528

120,374

37,469
47,747
579,132
12,105

10,641
66,400

....

(ton£)_i.—:

435,695

34,093

11,675

spring

Early

—

Percentage of activity-^—.——
Unfilled orders (tons) at end of period

466,301

34,093
39,969

•

Early spring

4.30

4.42

Nov. 18
Nov. 18

———

39,680

200,221
1,308,360

233,901

1,419,351

■

Late

3,402,832
947,102
707,201

21,224

(hundredweight)—

Winter.

1,446,464
1,170,768
275,696
254,472

3,588,766

22,053

;

(bales)

Potatoes

4,162,376

256,677

Soybeans for beans (bushels)
Peanuts (pounds)

88.95

MOODY'S COMMODITY INDEX

Production

5,208.359

Hay, clover and timothy (tons)
;
L
Hay, lespedeza (tons)
Beans, dry edible (cleaned) (100-lb. bags).
Peas, dry field (cleaned) (100-lb. bags)

86.65

89.78

Nov. 18

PAPERBOARD

142,700
2,598,6851

REPORTING

(bushels)

Hay, all (tons)
Hay, wild (tons)-___Hay, alfalfa (tons)

88.95

94.86

.Nov. 18

Orders received (tons)

*4,007.178

Sorghum grain (bushels)

97.875c

99.250c

94.56

1—

NATIONAL

(net tons)

COMMERCE):

466,301

Rye

10.000C

94.71

—•—

—

3,993,444

2,262,000

1,419,351

10.500c

90.34

Group

13.300c

—Nov. 18
Nov. 18
r—Nov. 18

Group-.-—

6,310,300
6,167,600

*38,940

278,730

12.300c

Nov. 18

Railroad

*4,314,648
*4,275,708

4,504,381

;w_

U.500c

90.20

Aaa

•Industrials -Group---

45,729,000

(bushels)

11.000c

/•"

Public Utilities

spring
(bushels)

12.800c

Nov. 18

Baa

35,990,000
*2,084,000

1,979,000

3,686,218
1,449,498
1,170,768

11.000c

.Nov. 18

—

71,981

(in thousands):

11.500c

Nov. 18

12.800c

Nov. 18

Average corporate-——:

25,611

OF AGRICULTURE—

11.500c

Nov. 18

.—-—

24,982

39,100,000

^.1

CROP

—

12.000c

88.57

—

'MOODY'S BOND YIELD DAILY AVERAGES:

0,450

4,450,171

—

......

Railroad Group w-——
Public Utilities Group.
Industrials Group

3.162

2,151

Barleyr(bushels)

Nov. 18

l;'773

2,131

T~I''
'

of month

(bushels)
spring (bushels)
Dnrlim (bushels)

12.500c

24.700d')! I'

20,158

1,582

Winter

28.175c

166,473

■

(bushels)-

13.000c

U. s. Government Bonds—

as of Oct.

all

Corn,

30.975c

109,833;

undelivered

Wheat, all (bushels)

13.000c

12
12
12
12

392,733

158,733

and

(running bales)
S. DEPT.

30.550c

IL-S- •Government Bonds

26.475c

Nov.
--Nov.
.—Nov.
—Nov.

579,364

13,659
326,785

54,210

(DEPT.

PRODUCTION

26.150c

corporate«———

GINNING

To Oct.

$66.41

450,277

19,806
423,073

(net tons):

coke stock at end

BOARD
6.196c

11,800
91.500

(BUREAU OF MINES)—Month of Sept.:

28.625c

——-—Nov. 12

4,821,800.

•

(BUREAU OF MINES)—Month

28.625c

_——

4.925,100

INSTITUTE—

cars

Production (net tons)
Oven coke (net tons)_^™

MOODY'S BOND PRICES DAILY AVERAGES:

Average

freight

Nov. 12
—Nov. 12

—

at-..———

(St. Louis)

Lead

<•

new

—Nov. 12

——..

York) at—

Bituminous coal and lignite (net tons)_
Pennsylvania anthracite (net tons)

Export refinery at_——
"

4,993,900

4,898,400
9,100
86,400

unit

'•,'•■•••£

All

(E. & M. J. QUOTATIONS):
Electrolytic copper^.
Domestic refinery at———;
.

for

Beehive coke

$66.41

89,600

METAL PRICES
'

.195,126;

of October:

6.196c

7,800

—I—-II'— III-—'

COAL OUTPUT

53,614,000

$66.41

5,050,200
4,952,800

factory

-•

—

freight cars deliveredBacklog of cars on order
(end of month)_

166,675,000

100—

145,174

*187,390

601,612

washer-dry erg.

RAILWAY CAR
Month of September:

Orders

145

Nov. 13

—

S. BUREAU OF MINES):
Bituminous coal and lignite (tons).

Pennsylvania anthracite (tons)

Year

-Ago

124,999

of September:

appliance

Dryers

509,000

—-Nov. 13
&

$221,470,000

123,630,000
250,686,000
197,415,000
53,271,000

COAL OUTPUT (U.

"DEPARTMENT STORE SALES

laundry

Washers

$372,988,000

State and municipal
Federal

$374,316,000

$248,110,000
112,155,000
135,955,000
119,197,000
16,758,000

—-————.

construction

Public

New

——•

—

construction——

Private

183,557

(domestic)

Combination

34,177,000

NEWS-RECORD:
Total tr.

ASSOCIATION^—Month
home

sales

ENGINEERING

—

Month

126,327

LAUNDRY MANUFACTUR¬

AMERICAN

freight loaded (number of cars)

Revenue

ERS
Total

ASSOCIATION OF AMERICAN RAILROADS:

Revenue freight received from

—:

Manufactured gas sales (M therms)
Mixed-gas sales (M therms)—
I_

7,151,000

169,210,000

(bbls.) at—-—:
Distillate fuel oil (bbls.) at—————

of that dates]

Month

U. S

endofMay

6,796,285

6,873,785
7,723,000
27,636,000

Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at;..—-——Nov.
Kerosene

are as

Latest-

September:

.Nov.

—Nov.

—

either fbribe

are

AMERICAN GAS ASSOCIATION—For
month of

(bbls. of

Crude-runs to

of quotations,

cases

(in short tons)t—Month of May—
Stocks of aluminum (short
tons)

AMERICAN PETROLEUM INSTITUTE:

or,

(BUREAU, OF

MINES):
Production of primary aluminum in the

Age
76.0

75.1

Dates shown in first column

that date,

Year

production and other figures for tht

cover

91.9

91.4

92.1

91.8

.Nov. 11

109.9

109.8

110.1

106.3

Meats

.Nov. 11

104.8

104.2

104.9

All -commodities other than, farm and

126.3

126.2

126.1

125.6

from

mills

(barrels)

.■*_
—

Stocks (at end of month—barrels)

Capacity used (per cent)

31,597,000
34,767,000
-

20,018,000

93.2

.Nov. 11

< barrels-)

Shipments

Processed

foods.

((Includes 1.038,000 barrels of foreign crude runs. § Based on new annual capacity of 140,742,570 tons
as of Jan. 1, 1958» as against Jan. 1, 1957 basis of 133,459,150
tons. tNumber of orders not reported since Introduction of
Mont^y investment Plan. }Prime Western Zinc sold on delivered basis at centers, where freight from East St. Louis exceeds
•Revised figure.

one-half cent

pound.

•Revised figure.

fBased on the producers' quotation. fBased on the average of the
producers' and platers' quotations. SAverage of quotation on special shares to plater.
K Domestic five tons or more but less than carload lot boxed.
§§ Delivered where freight
from East St. Louis exceeds 0.5c.
**F.o.b. Fort Colburne U. S. duty included, ttAverage
of dally mean and bid and ask quotation at

ttlncrease all stocks.

morning session of London Metal Exchange,

The Commercial and Financial Chronicle

...

(2122)

Texas Fund

Record

Mutual Funds

A MUTUAL

INVESTMENT

Delaware Bullish

Report
Highs

announced

was

Thursday, November 20, 1958

On Florida

Carter,

High in October

Fund Share Sales at New

monthly high, it was

Kztimrt

This

IncomtSelieii

FREE INFORMATION
FOLDER AND PROSPECTUS TO

Investors redeemed shares
increase

3,706,264
the

in
to

the first ten months of

Texas

include

the

Eastern

out, is in the main stream of the

State Life Insurance Com¬

American trend toward recreation

Gas

Assets of the 145 mutual fund

Association members

made

$12,-

were

000.

ible

market

plans

19,576

opened in the

previous month

October of last j-ear.

J Incorporated [
I

Investors
ESTABLISHED 1925

third

Cites Increased

A mutual fund investing in a

list of securities selected for

possible long-term growth of

|
|
|

capital and income.

quarter 6f 1958 was
one of increased activity through¬
out the electronics industry and

A mutual fund investing in u

of securities

for

current

J
'

A prospectus on each
fund is available from
your

The Parker Corporation

large

and

computers

government

•

compared

operations,

this,"

she

con¬

time

work

also

and

increase

devoted

were

high

was

Massachusetts
the

nation's

declared by Spiegel, Inc.,
resumption of Copperweld's
quarterly payment giving

Fund

recent

return

current

nearly 7%

Both

are

the latter.

portfolio additions.

Delaware
Income

Fund

and

Delaware

Fund, the mutual fund
noted, remain fully in¬

vested.

■v

•

•.

Investors

oldest

Trust,
in¬

open-end

47.4% Gain in Assets

vestment company, reports

30,

assets

per

its

end

that on
Sovereign Investors reporting as
1958 total assets, net of Oct. 31, 1958 shows total net
share and the number assets of $2,659,434.77 compared

shareholders

points

were

for' any

in the 34-year

the

quarter-

with $1,803,683.80 on Jan.

This

represents

1, 1958.
increase
of

history of the 47.4% for the period.

trust.

announced

Net

asset

value

per

Fund

the

only

1957,

Oct.

31,

that
transistor
shipments reached a
new high without making
severe
inroads

vacuum

and

further

12,754,268 this year.

reports

tube

were

31,

924

Axe

the

Friday.

and
1948.

Shares outstanding rose from 402,-

year."
Mrs.

all-

Oct.

$2,067,713

sales—

pre-

and television and radio producers

stocks

Net

1948

asset

10,167,578

value

1957

the

duce

inventories; "paving the way

for a

sharp upturn in the produc-

outstanding,

196,770

stockholders.

ing the

just ended.,

year

dis¬

tribution of 29 cents

net

was

security

shareholders

profits
on

Oct.

share from

24,

paid
,

Incorporated's Per.
Share Value
Up 29%

owned
by
These fig¬
ures
compare with $1,041,762,243
Total net assets of Incorporated
in assets, represented by 99,024,538
Investors have risen over $65,000,shares outstanding, owned by 179,000
since the first of the year,
436 shareholders on Sept. 30, 1957.
During the three months ended reaching a record high of $278,Sept. 30 the trust made, additional 000,000 on Sept. 30. The net asset
share increased 29%
investments in the stocks of 36 value; per
from $7!01 at the beginning of this
portfolio companies; sold some of
year to
the equivalent'-of $9.04
its holdings in nine companies and
eliminated its
holdings in Bur¬ after, adjusting for capital gain
distribution of $0.27 bn Feb. 14.
roughs ,Corp., Douglas Aircraft,
In the quarter ended Sept. 30,
West Virginia Pulp & Paper Co.
-

and Wisconsin Electric Power Co.

advanced from $6.72 to $7.87 dur¬

and dealers have been able to re¬

growth possibilities.

283,816, represented by 106,212,632
shares

total net assets

$68,317,043 on

re-

President.

of $100,415,860

The fund's

the

development,
for
amounting to $318
awarded during the

and

million

selected for income and

the

Electric; Atlantic Refining;

Sept.

education/

end of the fiscal year last

which contracts

holdings of bonds,

dends
and

Emerson W. Axe,

"has been to spur actual
of electronic compo¬

nents

common

appro¬

Preliminary figures show
effect

"The

amount

ferred and

his

divi¬

50-cent

in, Oklahoma

made

extra

$100 Million Mark

production

diversified

were

called

Highs as of Sept. 30 Sovereign Reports

Fund B Assets Pass

$3V2

tinues,

A BALANCED

Brick

also

attention

Outstanding
rose
14.4%;
from
175,377
shares to
200,778
Sept. 30 was $12.20 which, to¬ shares during the same period.
gether with a special capital gain
The net asset value per share
<■ istribution
of 17 cents in Feb¬ increased from
w
t
* ^ ■*;;'* f
'■>
*■***
'
$10.28 on Jan. 1,
ruary, is equal to $12.37 a share,
1958 to $13.25 on Oct. 31, 1958 a
Axe-H o u g h t o n Fund B has
compared with $10.52 per share a 28.8% ~ ^mnce in the 10 months.
crossed the $100 million mark in
year earlier.
y. 7:
"" 'A"/ :
total net assets after 20 years of
Total net assets were $1,295.-

craft."
J

FUND

Firs

MIT Records New

alloys in

Axe-Houglitoii's

billion in the previous
fiscal years — "with missile work
now ranking a close second to air¬
with

Boston, Mass.

I..

Green

Humble Oil & Refi iih«." De¬

highest

the

billion

A. P.

Barringer

board's
.

■

I
'

200 Berkeley Street

than

contracts

defense

j
J

more <

■-■—-—

micro¬

quarter

ceived

investment dealer.

devices

priation for science

atomic age

now

report of this Axe
mutual fund, Mrs. Axe
says that during the government
fiscal year which ended June 30,
1958, the electronics industry re¬

•

science

accompanying

letter

third

•

Mr.

Tennessee

— — —

Hugoton
Production;
Champion
Paper & Fibre and National Tank.

"re¬

uranium

for

use

electronic

in the past, according
to Mrs. Ruth H. Axe, President of
Axe Science & Electronics Corp.

income.

calls attention
discoveries

unequaled

Income Fund
list

realm

management, he comment¬
ed, has known how to turn these
natural advantages into steadily
growing profits.

executive

to be receiving a stimulus

appears

whole

the

amplification," discovery of

new

and

¬ cellent

•

Gas

during

third

The

j Incorporated J
»

wave
a

the

also

markable

Electronics Field

models

new

also

quarter."

She

Activity ill the

|
|

preferred

creases

tion

and

19,184 in

and

2nd

Transmission.

made

purchase of mutual fund shares totaled 22,735 in October. -There
were

TREE ON REQUEST

Eliminations from holdings were

The number of new accumulation plans opened for the periodic

EITHER PROSPECTUS

Southern
vacations, and is
experiencing some convincing
industry growth. The utility's ex¬
and

pany.

price levels, the Association said.

with falling

share seem to justify its high
price-earnings ratio. Florida Power
Light's territory, he pointed

Transmission;
Transmission; and

Increases to holdings were
Arizona Public Service;
Community Public Service; Ar¬
kansas Louisiana Gas; Gulf Insur
ance; Trinity Universal Insurance;
Socony Mobil Oil; Standard Oil;
Longhorn Portland Cement; Reed
Roller Bit, and the 5.16% convert¬

New York 5, N. Y.

Barringer,

per

Gas

price levels as well as net new money invested in mutual
funds by individuals and institutions.
,

Fttablithed 1930

120 Broadway,

Mr.

Texas

$34,331,000 in October of last year. Redemptions of mutual fund
shares tend to increase as securities price levels rise and to decline

RESEARCH CORPORATION

sold

of expansion of gross, net and net

portfolio

281,441,000 at the end of October. On September 30, 1958, assets
were $11,790,270,000 and a year ago on October 30 were $8,666,442,Increases in total assets reflect the overall increase in stock

NATIONAL SECURITIES &

Light
the last of its Rayonier,

Home

valued at $61,270,000 in October, an
redemptions in September and the

the $50,075,000 of

over

po¬

also Chairman
of the Delaware Board, said the
big utility's commanding record

$32,477,032 from $29,704,093:
to

Power

■

ago. Total assets
fiscal year increased

additions

Florida

Barringer, of Delaware
Company, the Fund's investment
adviser,
reported
in
his
latest
semi-monthly Directors' Letter.

the

year

last

New

in September,: 1958 and

$128,337,000 in October a year ago.

YOUR INVESTMENT DEALER OR

ending Aug. 31, 1958. Total
of shares were 3,880,835
the end of August, as against

announced.
new investment through the medium of'

compared with $1,187,314,000 recorded in
1957.
Share purchases total $146,157,000

WRITE FOR

reached

were

number

$1,307,902,000 for the first 10 months of this year,

mutual funds to

assets

year

during October, a new

the total

brings

and

new highs in total num¬
shares outstanding and in

total

National Association of

D. Moreau

ber

of shares of the 145 open-end (mutual

by investors

Purchases

fund) investment company members of the
Investment Companies totaled $170,563,000

sition

Inc., that

FUND

III,
President,
in
the
9th annual report of Texas Fund,

RICH

By ROBERT R.

Utility

Delaware Fund has taken

Additions to the. portfolio were
made in Armco Steel; Santa Fe

the

Fund reduced

its

holdings in

oil companies from about $55,000,-

000 to about $46,000,000. -Incorpo¬
rated
Investors
131st
Quarterly
Ry.; Caterpillar Tractor; Cham¬
Report states that "The oils still
pion Paper & Fibre;. Comm. Edi¬
represent our largest commitment
son; Dayton Power & Light; GE;
in any single industry.
It is an
GM; Gillette; Honolulu Oil;
essential business With sound
Household Finance; International
Harvester;
Lone
Star -Gas; growth characteristics hut in the
.

Get the facts

Ail Equity
Fund

Republic Steel; Royal Dutch Pe¬

FRANKLIN

investing pri¬
and Seeking possible long-

possibly

value

Find

out

now

about this series of Mutual Funds

' -

■

in-

seeking

possible growth and income through investment in Amer¬
ican

industry.

The

Wellington Company
Philadelphia 3, Pa.
Check

Fund

one

FRANKLIN CUSTODIAN

□ Wellington Fund

64 Wall

□ Wellington Equity

FUNDS, INC.
A

Street, New York 5, N. Y.

Common Stock Investment Fund

Irfvesfmfent

Please send me, without

Fund

obligation, the Prospectus and other inforCustodian Funds. ' •'":
7/"'

are

objectives

possible
growth

income

mation concerning the Franklin

for

Prospectus

NAME
HAMfe.

its

upon

of ' this Fund
Capital atid

tluu^lMiidets.
request

—

ADDRESS.

cfrY_

Lord, Abbett & Co.

ADDSESS-

ZONK.

New York

__STATR_
MM«

Southern Co.; Southern rapid recovery of earning, power
in certain cyclical industries, the
Southern Railway; and
reduction was felt to be desirable.
Union Pacific RR..
Decreases in
common were made- in American
During the quarter Incorporated
Can;.. American
Metal
Climax; Investors increased its holdings of
Deere
&
Cpt£ Diamond Alkali; pharmaceuticals with additional
DOw Chemical; Pfizer; Union Car¬ purchases of Eli Lilly, Merck &
bide; and United Aircraft.
Co., Schering Corp. and Smith
r-T -

Write your investment dealer
far the prospectus of your choice
or usi coupon below

fields

other

diversification,

greater -increase

troleum;

FUNDS

capital

and incortie.

interest of further

and

Pacific;

CUSTODIAN

marily in comtnon stocks
term growth of

McGraw.-Edison; National Steel;
Norfolk & West-lKy.-; Pullmah;

—

Chicago

—

Atlanta

—

Los Angeles

Volume

188

Number

5796

The Commercial and Financial Chronicle

(2123)

«onn;wnhm^retUlSanfLpu0gh: Chemical Fund's

Fidelity's Assets

paperehoidtagrtnh addltfons

Now

St. Regis Paper and

Timber.

The

Assets Reach New

Weyerhaeuser

Fund

also

All.Tim** Hl€vli

added

Kaiser
Aluminun* and* Chemical
Corporation to its aluminum posi-

tion

ana
and

increased

its
its

Allllt? XXI^XI

ments were made m

utilities

all

growth

Power and

of $400

Henry J.

renorted at

value

share also

per

all-time

new

com-

Secu-

high

Presi-

over

Corporation, sponsor and
"manager of the funds," attributed
rise

commenting

comparable period of last

the advance

vol' the stock market into

high

new

ground, Mr. Simonson noted that
total national spending was reach.ing new record levels and in his

opinion would continue for

and

pared with $11.72 per share
Dec. 31, 1957.

share,

same

JA6aCll€S JNeW

some

6clk

shareholders which was released.
At the close of the recent fiscal
year,

the

-pressure;on

securities,

noted, but further price advances

anticipated
"ahead

during

suhjfect

.corrective

stocks

the

adjustments^ normally

;

$4.64

Series;,'iip

-Mutual 1Uvestment

Doubles Assets
Opt

thp

npf'a^pf

^ 11

7ftft

?n iln

f^fol vesfors'and

Preferred

1958, Franklin estab'
_

been

xxroc

.and

as a result sales have

given

impetus, the
stated.
J

re-

Sfi77RQn In POrf'ttfstockholders

debentures
convertible

•

$5.59;

eecnfe

into

$5,568,358

common

U.S.

from
For

gain of approxi- and

$1,000,000

year

the

$42,934,000

similar

showing

has

to 1.3% of the

reasons

opment

$40,328,-

the

creased

months

with 92.6%

securities

added

in.**'the

district

intense.1 To meet this
Fe has expanded its

which

now

operates

subsidiaries

over

route

operate

competitive position of

in-

road

$89,700,000 in the nine

also

has

the

rail-

been

improved
Transportation

through the 1958
Act.
The latter

$78,900,000

should

reduce

non-regulated movement of agriculture products on the
highways
and also enable the road to elimi-

dropped from 53.1% to

wages

increase

and reported a combined
net profit of $492,000 in 1957. The

in the like months of 1948, a decade ago. The proportion absorbed

from

to
^

These

system

1958

profit

Common stock investments
amounted to 95.4%, compared
June 30, 1958.

<fe-

miles, or almost as
much mileage as the road itself.

1958.

much

13,000

mechanized
maintenance.
Total
expenses

building
been

trailer

ary

highly
way

had

- on-flat-car
service
and also has increased the operations of its motor carrier subsidi-

Fund's net assets on Sept. 30, 1958,
compared with 1.1% on June 30,

Santa

own

has been the devel-

maintenance of

served

good control
One of the prin-

expenses.

cipal

Competition

three quarters

been

over

could

revenues.*

ago.

first

and

which;

programs*

ferred, might again be reactivated.
This would be high rated traffic

passenger mile-

should
Also, it i

West Airlines- Eliminated from period rose to $126,300,000 from
the Fund durinS the Quarter were $92,100,000, but the proportion of

provide

wages in this period

Oil

68.8% to 56.3%.

The financial position of the
Santa Fe continues
strong, As of
Aug. 31, cash and equivalents ag-

Corporation and Union
Company of California.

Advances 24.3%
of

c0mDanv

The

000

Invest-

America

rose

34-2% during the first nine months
of 1958, the company's Silver An*jjyersarv

vear-

andreached

fee-

$213,300,000 in the period

000

compared with $95,4OQ,O0O

between 1957 and 1958. In this on the corresponding date of 1957.
resPect the wage ratio increased The cash flow from depreciation

??aIfi^y^ar 1SQAphaft trom a ratio is an impressive $37,000,000 while
46,9 %
^.948_rlt now 1S run" equipment maturities and other
8s around 56.9%.

ord high of $119,081,167 at Sept.'.

5wag Jtate'd

flexibility in estab-

lishing rates to meet competition,

dropped from

With respect to transportation

debt

due

this

president

stocks;

Govern-

final

quarter

the

ended

year

Sept. 30, 1958 continued to climb
the like period of 1957, with
sales of $225,339 un 120% over the
figure, r of $101,906 in the final
three

ended

months

Sept.

;

o£
v*.

§88 737 452
*
7

nent industries and 161 expansion time next
"

....

„

the

11,708,464 shares then out'
standing. The net asset value per the quarter included Addressoshare, adjusted for the capital graph-Multigraph, American Natgain distribution of 10 cents, in- ural Gas, Arizona Public Service,
creased 24.4% in the nine-month Carrier,
Central
&
Southwest

Corp.,

period.

over
.

-lii

.
1

■

30,

the

fiscal

year

1957.

approximately

phare

the

17.4

average

cents

j?.

per

States.

number of

Timo.

with

Ptrfcttfrill OflflPtf*

investment

net

computed

income

sim-

Jlx

$2,106,121 or
approximately 19.8 cents per share

with

insurance.

plans are of^
optional group term

Thus

ait

insured

f^^frJSpdc

Insurance Company of Hartfrnfd,

Conn., the United States Life In-

W111^

•

ir°™ ibeir liquidation are niftde
available to a designated benjtfiPiary/
insurance is written
by the Connecticut General Life

(.OFD. ODdlS

ilarly

from

AlFSt lUVCStOFS

(12,614,193)
outstanding
during the period. This compares

if-— „

Its

planholder should die before comEdison, pletion of his plan, the unpaid

Commonwealth

■

,r,

United
fered

year.

.-4,...1,

-■

.^ihg 1959, the funds anticiNet income, excluding capital general Telephone, and Lincoln
pate Je^rd gl^wth ln.sales a^d gains, for the nine months ended Llfe*
mufated ^hTre^
shareholders. Gross sales in the Sept. 30, 1958 was $2,196,764, equal

rnents, cash, bonds and notes.

amounts

year

Industrial,development in the only $5,556,000.

territory

served has played a
Currently, Santa Fe pay* a diviJonathan B. Lovelace in his quar- ^ar8e
Pa^t in sustaining the vol- dend of 30 cents quarterly plus
ferly report to the shareholders. um® °* the carrier. The South- a y^a**~end extra of 20 cents for
This was an increase of $30,343,715 western territory had been hurt a total of $1.40 annually. In view
since Dec. 31,
1957, and an ill- by a long drought which was only of the road s good operating and
crease
of $13,412,196 since June bioken this year to give the Santa physical condition, and the large
30 1958
*
Fe a more-or-less normal crop other income it receives from
'
*
f
.
{ <61iq 081
movement. Last year the pace of subsidiaries, as well as its large
iR7
qr>
industrialization was slowed to land holdings, it would seem
w
£'4 '
S TthI some extent because of the drop likely that with a further upturn
7fi4 4P7^
This of..genGral business activity.
De~ in business that the regular quar^ntni of
qi
spite thls' some 380 new Perma~ terly rate might be increased some
m

$5.90 ,to $5.72.

In. April,

npt

Q74i5fia vfr

Utilities

4% froip $5.49 to $5.70,

$10.24;

hshed Reinvestment and Monthly
nfM.if.iai TnVp«tmpnt Fnn/S Investment Programs which have
*2? 0^4 04/*'9
!rnlri
.been'" received favorably by inOn

to $485,481.

ahd the Bond Series declined 3%
ffom

•

,$3?56

from

•

Series ; rose 35% from $7.39' to
$9.97; Income Series went up 20%

«9 q^

fi'om

up-

<
"

no?i°m Bn
ith
^'ft
^«r.t a^ iQ?7
$2,335,538 on Sept. 30, 1957.
«q

during.the year as follows: Comnripn Stock Series increased 20%

to the intermediate

encountered in any long-term
ward movement.
•
'

showed

mately

expansion

many

over expenses,
net railway operating income ac-

the year net income was

Net cash and U. S. Government

can

the five funds

The net asset value per share
the. various series changed

onths

assets of

PU^g*£€^
by investors amounted

priees of fixed
Mr. Simonson

in selected common

; Increasing
credit demands by
business, individuals and govern- g
ment
will
continue to maintain-^

'r income

Carrier

'»'nli

tivity.
<

reported in 1957

readily.

earnings have started to reflect
the general gains in industrial ac-

000 as compared with $453,400,000
in the like 1957 months. However,

period of 1957.

•

portfolio during the quarter included

Ffanklin Custodian Funds, Inc.
manufacturing recorded a growth in total net

steel

were

:
1 1#
C*
#.
1*
Northern Pacific, Crucible Steel, 49.2% during this period. Equip- nate unprofitable
FRll&llll I^llStOCllclll Consolidated Cement and North- ment maintenance over the same age more

time to exceed all previous marks.Such pivotal industries as auto-

motive

gams distribution of 40 cents a
share paid Feb.
10, 1958, and com-

New

year.

...

;

per

$2,000,000, the largest October securities amounted

sales volume on record. The Ocof $134 million over the tober total was 31% higher than
1, 1958 figure of $266,841,000 the'same month a year ago. Sales
f to
new purchases by investors and Aor
the first. 10 months of 1958
-market appreciation.
were;* 16% higher than for the
;

Sept. 30,

Ju^e 30' 1958' both after caPital tually

shares in October totaled

new

Jan.

per shafe com* due to good control

per

It was also reported that sales

dent of National Securities & Re-

the

1958

over a year ago.

vaiue

assef

share.

Simonson, Jr.,

Net

Pared with $13.11

ff?6 2?1
asset

jq.5%

end of September, 1958, Adjusted
On Sept. 25, 1958, dividend of 000, equivalent to $1.47 a common
for Paid~°ut securities profits, the \\ cents per share was paid by the share as compared with $39,215,latest ne} asset value per share Fund from net investment income 000, or $1.42 a common share in
™pi'enSG"s a 27%, gain from Sept. bringing total dividends for first the like period of 1957.
'
7 asset value of $15.72 pei nine months of 1958 to 33 cents
The big factor in the road's

all-time peak in excess

million.

$176^f CKK)

$19.42 compared with $18.61 at the

rities Series of mutual funds have
reached
■

Chemical.Fupd

whh

scored

industry

Atchison, Topeka & Santa Fe'S projects

000 on t>ept. 30
1957'
$i<it>,4U,uuu on Sent 4U, iya/.

nnd
ana

its participation in
growth of the mutual
fund

SIIS io4fl

assets of the National

Atcllison, Topeka & Santa Fe

30) 1958\ Both number of shares

level

est

Top $400 Million
bined

sales

Net

investment

Fund

National Assets

steadv

largest Cctober

Chemical

oares

Reflecting

total

outstanding and number of share- earnings this year have shown a compared with 437 hew install¬
holders reached new highs as of marked degree of stability. Gross tions and 201
expansions i* 19%
^ <tiSept. 30, 1958. Fidelity Fund now revenues for the first nine months With general
business
showing
,
T^Funds assets reached $185,- has 71,300 shareholders,- an in- of this year aggregated $429,400,- improvement, it is belteved that
161,000 on Noy. 6, 1958
the hig - crease 0f

Central and Southwest
Corp.,. Florida Power and Light,

"the

the

rLmd ^

areas:,

-Houston Lighting and

shows

co1mrr! "

1958,

the following

operating

0f Sept. 30,

ne* assets
$319,471,577. This is
m ,lcwlu
In record highs in total assets and an. mcre.ase.0.£„_a„b°u.t Ai'5% ?ver
$279 011423
Tune

position

Railroad Securities

Chemical Fund, Inc. reported new

and ChlcaS° and i|p0rt^d

wm<ta
Western.

North

New Record

Fidelity Fund quarterly report

Rowland A. Robbins, Chairman
ILf i a
York
average
number of of
First
Investors
Corporation and
® Continental Assurance
outstanding in the corre- (FIC), 120 Wall Street, New York comPany 01 *-mcago.
'
sponding period a year earlier. City, specialists in^-mutual funds
The custodian und^r these plans
Net realized gain on sales of se- and investment
plans, and one of js the First Pennsylvania Bankcurities in the nine months ended the
largest companies of its type ing and Trust Company of PhUa~
Sept. 30, 1958 was $3,686,459 as in the country, announced that delphia, Pa., a banking institution
compared with $5,170,012 in the FIC will open a new sales office in business since 1782.
iike period ended Sept. 30, 1957. in Boston next week at 53 State
Approximately 125 000 FIC platiThe proportion of the fund's Street.
holders invest in mutual funds
assets jn equities, including deThe office will be headed by through such programs,
b
t
wi^h
'u
hara(fteris- Melvin S. Scherr, formerly an FIC
'
79 3%
on
Sept
30 as sales executive in New York.
FIC plans currently m force exon

lesser

Group's October
Sales Record
Higli
-

;
of

Investor purchases of $4,699,000
Group Securities, Inc., leading
3

r^C?£d

Ibf month of October and the
thus far, and represented

year

increase

nxonlh in

US7,

;

Included

were

140%

the

same

the

conversions

other

over

total

from

EATON

includes

331,000.
period

Net

were

HOWARD, incorporated

24 Federal St., Boston, Mass.

-4

Group

now

Group

This
of

$6,-

liquidations

for

the

$9,716,000.
total

form.
j^ew

Xe"Tf

assets

$140,000,000, up from
$92,207,000 on Jan. 1° 1958.

tail

sales

organization.

1950

portfolio Mathews & Company became the
during the quarter included Amer- exclusive New England distribujcan & Foreign Power, Consoli- tors.
However, due to Mr. Mad a t e d Freightways
Fibreboard thews' illness, Mathews & Com-

fig-.Paper

conversions

Securities'

exceed

atufTvf

asSets

Investor purchases were $37,701,000 for the first 10 months of

1958, 149% above 1957.

Initially offered in 1940, FIC
which
remaining 20.7% of total net plans were sold directly to New
nairf in to date
are
held in highly liquid England investors by its own re- mimon nas oeen Paia m 10 aave.

The

an-

...

ure

compa^d witlv%7706% oT'june 30

funds of $485,000. Net liquidations
for the month were $1,034,000.

Prospecfuses available from
your Investment Dealer or

figure

one

individual

names

Products

Financial

the

Great

Norfolk

Western

Pa"y

Western

the

Mr. Robbins pointed out that
investors adopting an FIC «ontractual plan which provide*; lor
ten years of monthly paymeats,
have a choice of having their ki-

being dissolved and vestments made in either a -bal-»
staff of 17 salesmen anced fund (Wellington FUndh a

now

entire

Philips' Gloeilam- will become affiliated with
Outboard Marine, First Investors Corporation.

the fully managed fund (Mutual Inpenfabrieken,
vestment Fund); or a common
Stewart Warner, and Thompson
First Investors Corporation has stock fund (Fundamental IiwestProducts. Companies whose stock sales offices and representatives orS;-—aepending on tneir mvestwas completely eliminated during
in principal cities throughout the ment needs.
Railway "N

The Commercial and Financial Chronicle

...

(2124)

Thursday, November 20, 1958

* INDICATES

Registration

Securities Now in
-^Admiral Benbow Inn, Inc., Memphis, Tenn.
Nov. 5 (letter of notification) 100,000 shares of common
stock (no par).
Price—S2.50 per share. Proceeds—For
operating a restaurant. Underwriter—James N. Reddock
& Co., Memphis, Tenn.

(Republic of)

^Austria

Cedco Electronics,

exchange reserves and be used for the continuation of
capital expenditure programs.
Underwriters—
Kuhn, Loeb & Co., and Ladenburg, Thalmann & Co.,

certain

Aiyeska Ski Corp., Girdwood, Alaska .
Nov. 12 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
build
®

ski resort.

of which 5.000 shares are to be offered for sale to com¬

employees.

pany

Price—To he supplied by amendment.

Proceeds—For general

corporate purposes.

Underwriter

—Dempsey-Tegeler & Co., St, Louis, Mo.
9

American

Nov.

due

Art

filed

1968.

Metals

Price—To

Co.

SI.250,000

(12;9)

debentures

convertible

equipment and relocation of facilities; and for
working capital.
Business—A manufacturer of alum¬
inum entrances and store fronts from aluminum ex¬

N, E., Atlanta. Ga.
Underwriters—The Johnson, Lane, Space Corp., Atlanta
and Savannah. Ga.: W. E. Hutton & Co., New York; and
J.

Office—433 Highland Ave..

H. Hilsman

Co., Inc., Atlanta, Ga,

Autosurance Co. of America

of common stock (par one cent) to be
units of 10 shares of preferred stock and one

5,000

share of common

stock.

Price—$31

Proceeds

unit.

per

purchase of bowling equipment and working cap¬
ital.
Office—135 Front St., New York, N. YT.
Under¬
writer—York Securities, Inc., New York, N. Y.

•—For

Price—$5
surplus.

of which

4,545,455 shares of this stock are to be offered for public
sale at SI.75 per share. [Shares have been issued or are
issuable under agreements with various policy holders
American

Buyers Life Insurance Co. and American
Co. (both of Phoenix) permitting them

Nile Assurance

purchase stock at $1.25 per share. Sales personnel
been given the right to purchase stock at $1.25

have
per

share up to the amount of
stock sales made by them.]

commission they receive

Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
States. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
on

derwriter—None.
American-Caribbean

Oil Co.

(N.

Y.)

Feb. 28 filed 500.000 shares of common stock

{Price—To

be supplied

by amendment.

(par 200).

Proceeds

To
Un¬

—

discharge current liabilities and to drill ten wells.
derwriters—To be named by amendment.
American

share.

per

Fidelity Life Insurance Co.

Bankers

of common stock (par $1),
to be offered publicly and
133,740 shares to employees pursuant to stock purchase

Feb. 28 filed 258,740 shares
which 125,000

are

options. Price—To public, $6

Proceeds—For
expansion and other corporate purposes. Office — At¬
Management Corp.
400,000 shares of common

stock

(par 25

cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. OfficeHouston Texas. Underwriter—McDonald, Kaiser & Co.,

McDonald, Hoi man

Inc.

(formerly
York.
' V
.7

Co., Inc.),
/ 7 '
/ '

New

770.000

common

(11/21)

stock

(par

par

($100

purposes.

Price—At
Proceeds—For general corporate
Underwriter — Bankers Bond Co., Louis¬
share).

per

ville, Ky.
Bellechasse

Oct.

filed

Mining Corp. Ltd.

800,000

Price—$3 per share. Proceeds—To acquire and
manage bowling alleys.
Underwriter—Netherlands Se¬
curities Co., Inc., New York.
American Mutual Investment Co., Inc.

stock.

Price—

the Canadian Stock Ex¬
change. at the time the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three
years as follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec): for general prospecting costs;
and for general administration expenses.
Office—Mont¬
real, Canada.
Underwriters—Nicholas Modinos & Co.
^'Washington, D. C.) in the United States and by Forget
Forget in Canada.
•

Belock

Instrument

share. Proceeds—For investment in first trust notes,
jecond trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.

iper

—

Service, Inc.

(12 9)

Nov. 14 filed 100,000 outstanding shares ol common stock.
Price—To be supplied by amendment. Proceeds—To the
Estate of Alice Busch. Underwriters—Newhard, Cook &

Co.; Reinholdt & Gardner; Stifel, Nicolaus & Co.. Inc.;
and Scherck, Richter Co.; all of St. Louis, Mo.
Anita Cobre U. S. A., Inc., Phoenix, Ariz.

1957, filed 85,000 shares of common stock.
Price—At par ($3.75 per share). Proceeds—For invest¬
ment in subsidiary and working capital, Underwriter-

Sept.

30,

Selected
9

Securities, Inc., Phoenix, Ariz.

Arvida

Corp., Miami, Fla.

Oct. 28 filed

(12/1-5)

2,500,000 shares of class A common stock
(par $1). Price—To be supplied by amendment (expected
to be approximately $11 per share).
Proceeds—Together
with other funds, will be used for
development of the
company's properties and for working capital. Under¬
writers—Carl M. Loeb, Rhoades & Co. and Dominick &
Dominick, both of New York.

—

Co. Inc. and

Manufactures and sells

Underwriter—None.

Sept. 25 filed 165,830 shares of common stock (par 10
cents) being offered for subscription by holders of com¬
stock of Cary Chemicals Inc. of record Oct. 31, 1958
at the rate of one share for every four shares of Cary
mon

Chemicals common stock held; (with an oversubscription
privilege); rights to expire on Nov. 25, 1958. Price—$2
per share.
Proceeds—For expansion program. Under¬
writers
Lee Higginson Corp. and P. W. Brooks & Co.,

Cinemark

Productions,

Inc.

June 30 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office — 937 Acequia Madre ltd.,

Fe, N. M.

Underwriter—Watson & Co., Santa Fe,

N. M.
Clute Corp.
Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To

additional costs of construction; and for retirement
obligations and working capital. Office — c/o John
Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter

pay

—Lowell, Murphy & Co., Inc.,

Denver, Colo.

^ Coastal Caribbean Oils, Inc., Panama City,
Panama
Nov. 10 (letter of

notification) 176,624 shares of common
Price — At the market (on the
American Stock Exchange). Proceeds—For development
of oil leases.

(12/15-18)

For inventory and operating

equipment for
products recently developed, and the
balance for working capital. Underwriter—Carl M. Loeb,
—

new

ic Biddeford & Saco Water Co.
10 (letter of notiifcation) 1,000 shares of common
stock. Price—At par ($100 per share). Proceeds — For
Nov.

improvements
Elm

and

additions

St., Biddeford, Me.

Bowl America

Nov.

cents).

Office—181

property.

Underwriter—None.

Corp., Arlington, Va.

(12/1)

filed

300,000 shares of common stock (par 10
Price—$2 per share. Proceeds—For acquisition

land, building improvements and working capital. Un¬
derwriter—Auchincloss, Parker & Redpath, Washington,

Bridgehampton Road Races Corp.
23 (letter of notification) 15,000 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record Nov. 1, 1958 on the basis of one new
share for each four shares held; unsubscribed shares
will be offered to current creditors in payment of all
or part of claims, at the rate
of one share for each $4
Oct.

discharged; rights to expire about two weeks
after mailing of offer.
Price—$4 per share. Proceeds—
To pay current creditors.
Address — P. O. Box-506,
Bridgehampton, L. I., N, Y. Underwriter—None.
Campbell Chibougamau Mines,

Ltd.

(12/3)

Nov. 12 filed $5,000,000 of 6% first mortgage convertible
sinking fund bonds. Price—To be supplied by amend¬
ment. Proceeds—To repay bank loans, and the remainder
will be used for corporate purposes,
including com¬
mencement
of
development of Henderson ore body.
Office—55 Yonge St., Toronto, Ontario, Canada. Under¬
writers—Allen & Co., New York, and W. C. Pitfield &

Co., Ltd., Montreal. Quebec, Canada.

^ Carolina Telephone & Telegraph Co.

10 cents).

Underwriter—None.

Coleman

Engineering Co., Inc.
Oct. 27 filed $1,000,000 of 6% sinking fund debentures
due 1973 (with stock purchase warrants attached).
A
warrant to purchase 30 common shares will be attached
to each $500 principal amount of debentures, or a total
of 60,000 shares.
Price —100% and accrued interest.
Proceeds—To retire short-term borrowings; for antici¬
pated increases in inventory; and for additions to work¬
ing capital for general corporate purposes. Underwriters
—Wilson, Johnson & Higgins, San Francisco, Calif, and
Lester, Ryons & Co., Los Angeles, Calif. Offering—Ex¬
pected this week.
Colonial Aircraft Corp.,
8 filed 346,492 shares

cents).

Sanford, Me.
of

stock (par 10
Proceeds—To reduce

common

Price—75 cents per share.

loans, make certain capital improvements and for work¬
ing capital. Underwriter—Mallory Securities, Inc., New
York.

Commerce Oil Refining Corp.
Dec.

36,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares af common stock to be
offered in units as follows: $l,00u of bonds and 48 shares
of stock and $100 of debentures
nine shares of stock.
Price—To be supplied by amen^nent.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers,
York. Offering—Indefinite.
e

New

Consolidated Foods Corp. (11/21)
23 filed
111,489 shares of common

Oct.

stock
(par
$1.33 ^h)* Price—To be supplied by amendment. Proceedls
—To selling stockholders. Underwritersr—Kuhn, "Loeb &
Co., New York, and A. C. Allyn & Co., Inc., Chicago, 111,

(par

to be offered for subscription to stockholders of
record Dec. 4, 1958, in the ratio of one new share for
each five shares then held. Price—$125 per share. Pro¬

$100)

reduce short-term bank loans. Underwriter—
•

Kansas
Oct.

Cooperative Association,
City, Mo.

filed

certificates

$6,000,000 of 5*2% 25-year subordinated
indebtedness, and 60,000 shares of 54k %

preferred

stock (cumulative to extent earned before
patronage refunds). Price—For certificates at $100 per

unit; and the preferred stock at $25
—For

(12/5 )

Nov. 17 filed 58,773 shares of common capital stock

None.

(par

Consumers

^Cardinal Instrumentation Corp. (12/1)
notification) 240,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For pay¬
ment of notes, capital additions and inventory. Office—
4201 Redwood Ave.. Los Angeles 66, Calif. Underwriter
—Myron A. Lomasney & Co., New York.

Nov. 4 letter of

ceeds—To

stock

Oct.

of claims

Feb. 17 filed 375,000 shares of common stock (par $i
(Price—$4 per share. Proceeds—To purchase equipmen
«nd supplies and for working capital and other corporati
Office—Salt Lake City. Utah
Underwriter
purposes.
Amos Treat & Co., Inc., of New York. Change in Name
—Formerly United States Telemaii Service, Inc.

Inc.

taxicabs.

Checker Taxi

Business

Nov. 12 filed $1,000,000 of convertible subordinate deben¬
tures due 1973.
Price—To be supplied by amendment.

Corp.

D. C.

Dec. 17 filed 490,000 shares of capital stock. Price—$10.20

Anheuser-Busch,

Checker

Santa

common

Related to the market price on

•

cents).

American Telemaii

accessories leased from

working capital.

Inc., both of New York.

Rhoades & Co., New York.

Co., Inc., New YTork.

^r American Growth Fund, Inc.* Denver, Colo.
Nov. 17 filed 1,000,000 shares of capital stock (par one
cent).
Price—At market.
Proceeds—For investment.
Office—800 Security Building, Denver, Colo.
Under¬
writer—American Growth Fund Sponsors, Inc.
filed

and

for

Inc.

ward A. Viner &

new
share for each seven shares then held (with an
oversubscription privilege); rights to expire on Dec. 18.
Price—To be supplied by amend'ment. Proceeds — For
exercise by company of its option to purchase 19 presses

—

Bankers Southern,

manufacture of

Oct.

-V;.';

Proceeds

Enterprise Fund, Inc., New York

American International Bowling Corp.

?7y.7''

Chemirad Corp., East Brunswick, N. i.

filed

Oct. 30 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For investment.
Distributor—Ed¬

share.

•

Checker Motors

Corp., Kalamazoo, Mich. (11/26)7
Nov. 7 filed 133,112 shares of common stock (par $1.25)
to be offered for subscription by holders of outstanding
common stock of record Nov. 26, 1958 at the rate of one

Underwriter—None.

Bankers
Feb.

per

•

April 14 filed 8,934 shares of common stock.

7V American Buyers Credit Co.
Nov. 13 filed 5,000,000 shares of common stock,

stock (par $2.50).
Proceeds—To increase capital and
Office—Atlanta, Ga. Underwriter—None.

Oct. 36 filed 250,000 shares of common

lanta, Ga.

Jc American Bowling Equipment Corp.
10 (letter of notification) 50,000 shares of noncumulative convertible preferred stock
(par S3) and

Office—401 E. Green Street, Pasa¬
Underwriter—None.

working capital.

dena, Calif.

Nov.

offered in

(letter of notification) 99,900 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For general corporate purposes.
Underwriter—Herbert
Perry & Co., 70 Wall St., New York, N. Y. Statement
withdrawn early in November.

Oct. 23.

Inc.

(letter of notification) $250,000 of 6% 15-year
convertible sinking fund debentures to be offered for
subscription by stockholders of record Oct. 1, 1958. Un¬
subscribed shares to public. Price—90% of face amount

trusions.

Inc., Erie, Pa.

stock

(in denominations of S100, S500 and $1,000 each). Pro¬
payable to bank and others and

Oct.

Pro¬

supplied by amendment.

ceeds—5156,500 1o retire outstanding notes: S145.500 to
retire the presently outstanding 6%
cumulative pre¬
ferred stock:
for construction
of plant, and acquisi¬
tion

ISSUE

REVISED

for

(par $1),

stock

common

ITEMS

ceeds—To retire notes

Automation Instruments,

(12 4)

Corp., Fort Worth, Tex.

705,000 shares of

Nov. 12 filed

Oct.

Charles Town Racing Association, Inc.
Sept. 9 filed 4,000;000 shares of common stock (par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell such shares at the market. Price—60
cents per share. Proceeds — For construction of racing
plant and acquisition of equipment.
Office—Charlestown, W. Va. Underwriter—None. Statement effective

both of New York.

Underwriter—None.

Ambassador Oil

•

(12 3)

External Sinking Fund Dollar
Bonds due Dec. 1, 1973. Price—To be supplied by amend¬
ment.
Proceeds—To be added to the Republic's foreign
Nov. 13 filed $25,000,000 of

ADDITIONS

SINCE

ness,

retirement

redemptions

per share. Proceeds
maturing certificates of indebted¬

request of certificates of indebted¬

prior to maturity and of 542% preferred stock; the
possible improvement and ^expansion of present facili¬
ties; and the acquisition of manufacturing plants and
crude oil properties if favorable opportunities therefore
arise. Underwriter—None.
ness

Volume

188

Number

5796

The Commercial and Financial Chronicle

(2125)
Consumers

Power

Co.

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment.

Proceeds—To

1740 Broadway,
Denver, Colo. Underwriter—L. A. Huey,
Denver, Colo.

re¬

short-term bank loans and for expansion and im¬
Underwriter
Morgan
Stanley & Co., New York. Offering—Postponed indef¬
initely.

Cuban-Venezuelan Oil Voting
Trusts,
Havana, Cuba

pay

provement of service facilities.

—

Counselors
Feb,

Research Fundr Inc., St.
Louis, Mo.
100,000 shares of capital stock, (pair one
Price—At market.
Proceeds—For investment.

filed

cent).

;

Underwriter

Louis.
•

Counselors

—

Research

Sales

Corp.,

St.

Robert H. Green is President.

Crouse-Hinds

Co.

(12/3)
Price—To

selling stock¬

holders.J Business—Producer; of electrical conduit fit¬
tings. Office—Wolf and Seventh Sts., Syracuse, N. Y.
&

Weeks, New York.

"television

voting trust certificates,
representing the ownership of one share

stock

common

(par one-half cent) in each of 24
Cuban companies.
Price —To be supplied by amend¬
ment.
Proceeds—For capital

expenditures, exploration

costs and other corporate purposes.

Underwriter—None

★ Cutter Laboratories, Berkeley, Calif.
Nov.

Nov. 7 filed 219,408 shares of common stock.
be supplied by amendment. Proceeds—To

Underwriter—Hofnblower

150,000 shares of class A common stock.
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans, and for other corporate purposes. Under¬
writer—Blyth & Co., Inc., San Francisco and New York.
■.

June 5 filed 350,000 shares of

common stock.
Price—$1
share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

per

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock
(par 10 cents). Price—$2 per share. Pro¬
ceeds
For repayment of loan; purchase of plant and
office equipment; raw materials and
supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
—

Desilu
Nov.

(12/2)

525,000 shares of

common

stock, of which

250,000 shares are to be offered for the

account

series.

wood. Calif.

for

selling

stockholders.

Office—780

North

Gower

pi^r-

St., Holly¬

Underwriter—Bache & Co.,. New York.

★ District Veterinary Products Co.
•
5 (letter of
notification) $37,500 of 7% registered
debenture bonds and 12,500 shares of class B common,
stock (par $1) to be offered in units of one
$75 debenture
Nov.

and 25 shares of stock.

N. W.
*"'•

Price—$100

the

Washington, D. C.

unit.' Proceeds—

per

Office—52 "O" St.,
Underwriter—None.

Dixon Chemical

Industries, Inc. (11/24-28)
subordinated debentures,
1, 1978, and 236,000 shares of common stock
(par $1) to be offered in 59,000 units, each consisting of
$100 principal amount of debentures and four shares of
Nov.

due

filed $5,900,000 of 6%

Dec.

stock.

common

Price—To

supplied by amendment.
other corporate
Office—1260 Broad St., Bloomfield, N. J. Un¬
derwriter—Harriman Ripley & Co., Inc., New York.

Proceeds—For capital expenditures and
purposes.

★

Productions, Inc.

10 filed

To expand activities of the company.

(12/8)

filed

Derson Mines Ltd.

275,000

Price—To be supplied by amendment. Proceeds—or
chase of studios, etc.
Business—A

producer of filhied

March 31 filed 767,838 units of
each certificate

and

company

Dutch West India

Co., Ltd. .-U:\'»o
(letter of notification) 222,220 shares of

Nov. 3

common

stock (par 10 cents). Price—$1.35 per share. Proceeds—
For retirement of notes, purchase of
equipment, raw

materials, containers, etc., and leasehold improvements.
Office
129 S. State St., Dover, Del. Underwriter—Ross
Securities, Inc. (not Rose Securities, Inc. as previously
reported), New York, N. Y.
—

NEW ISSUE CALENDAR
November

(Friday)

Campbell Chibougamau Mines, Ltd

American International Bowling Corp
(Netherlands

Consolidated

Securities

Foods

Crouse-Hinds

Co., Inc.) $2,310,000

Corp.

111,489 shares.

Heli-Coil Corp.

Corp.
(W.

Langley & Co.)

(Offering to stockholders—underwritten by Blyth & Co., Inc.
J.

Hilliard

(Pearson.
.

Murphy
;

Son)

Co.,

Inc.

Inc

and

Lynch,

(The

First

Hoffman

(Bids

Natural

Gas

.Common

(Milton

(Wednesday)

(P.) Co

«nd

Common

Smith,

Barney

Co.)

Lehman

Polaroid Corp.

150,000 shares

Kletz

Common

<te

Co.,

Co.)

Inc.

and

Michael

60,000 shares

Securities

Corp.)

Common

515,021

Northwest Airlines, Inc
,

(Offering

Preferred

stockholders—underwritten

First

(Offering

Boston

The

Common

(Offering -to stockholders—underwritten

by Blyth & Co., Inc.
and The First Boston Corp.) 110,000 shares

underwritten)

$564,225

Wilier Color Television
(Edwin

System, Inc

Jefferson)

--Common

$206,105

December 1

(Monday)

(Carl M.

(Newhard,

Co.

and

(Bids

Parker &

Redpath)

EST)

a.m.

Philadelphia Electric

(Myron A.

(Bids

$600,000

noon

General

$240,000

Acceptance Corp

(Paine, Webber, Jackson

(Wednesday)

Union

Securities

Curtis

Co.)

and

Eastman

300,000

stockholders—not

(Carl M.

Loeb,

(Monday)
Debentures

Rhoades <fc Co.)

Common

December 16

Texas

Power

(Tuesday)
Bonds

(Bids to be invited)

underwritten)

$12,500,000

(Tuesday)

Norfolk

(Thursday)

& Western Ry

Common

(Bids

Equip. Trust Ctfs.
invited)

First National Bank in Dallas, Texas
to stockholders—underwritten

Corp. and Merrill Lynch, Pierce, Fenner & Smith)

$7,830,000

Bonds

PST)

a.m.

$50,000,000

Papercraft Corp..
(Eastman

Potomac

(Bids

Southern
(Stone

Co.)

250,000

Preferred

Corp. and Paine,
Curtis) $2,500,000

States Freight

260,000 shares

Merrill

Telephone
to

Common

(Paine, Webber, Jackson & Curtis) 21,500 shares

(Hemphill,

Common

Noyes

Co.)

Austria

360,000

(Wednesday)
1—

(Republic of)
(Kuhn,

Loeb

Thalmann

Co.

and

Co.)

$294,000 of 10-year 6%
Price—At par (in de¬

construction

$100, $500 and $1,000. Proceeds — For
a five-story
motor hotel. Office—1400
National Bank Bldg., Philadelphia, Pa.
Underwriter—R. P. and R. A. Miller & Co., Inc., Phila¬

$25,000,000

10 filed 132,416 shares of $4.50

Panama

(Republic of)

to be

$16,700,000

Orangeburg

Manufacturing

Co.,

Hankins, each of its 267,458 outstanding common shares
Flintkote common,
which will result in the issuance of 330,043 shares of

will be converted into 1,234 shares of
Flintkote

common.

Under

the

plan

for

acquisition

Invited)

$8,000,000

invited)

Debentures
Bonds

$20,000,000

stock

(letter of notification) 133,333 shares of common

Price—$2.25 per share. Proceeds-iOffice—4334 S. E. 74th Ave., Port¬
Underwriter — Ross Securities Inc., New

(par 25 cents).

For mining expenses.

(Bids to be Invited) $110,000,000

Fluorspar Corp. of America
Oct. 14

Bonds

Utah Power & Light Co.
to

stock

ing will be dissolved, and the Flintkote preferred shares
will be distributed to certain of its shareholders.]

Bonds

Brothers)

Pennsylvania Power Co

(Bids

series A convertible

preferred stock (par $100) together with 330,043
shares of common stock (par $5). [On Dec. 1, 1958, the
Hankins Container Co. will be merged into Flintkote;
and on the same date Flintkote will acquire all of the
second

Bonds

Southwestern Bell Telephone Co

Bonds
Ladenburg,

delphia, Pa.

Orangeburg Manufacturing, Flintkote will assume that
company's liabilities and issue to it 132,416 shares of the
new $4.50 series A preferred.
Orangeburg Manufactur¬

$20,000,000

Power

Moore-McCormack Lines, Inc

(Bids

December 3

Debentures

$40,000,000

(Lehman

Grocery

Invited)

(Kuhn, Loeb & Co. and Lehman Brothers) $24,000,000

Vocaline Co. of America, Inc
Von's

.Bonds

(Bids to be invited)

Montana

to stockholders—to be underwritten by
Lynch, Pierce, Fenner & Smith) $210,000

Bell

(Bids

..Common

(Offering

Preferred

(Morgan Stanley & Co.) $15,000,000

Common
Inc.)

Motel Corp.
(letter of notification)

Fleetwood

stock.

Postponed Financing
Consumers Power Co

Webber,

E., Inc
Co.,

(by amendment) an additional 8,000 Sys¬
(Periodic Payment) Investment Plans and 1,000
Cumulative (Full-Paid) Investment Certificates, and an
additional 12,000,000 Financial Industrial Fund shares.

outstanding

Michigan
&

10 filed

tematic

Inc., in exchange for shares of $4.50 series A preferred
Under the terms of the merger agreement with

$25,000,000

Power

100,000 shares of common
(par 25 cents). Price—$3 per share. Proceeds—
acquisition or lease of machinery and working cap¬
ital. Office—Lodi, N. J. Underwriters—Milton D. Blau¬
ner & Co., Inc., New York, N. Y., and Hallowell Sulz¬
berger, Jeriks, Kirkland & Co., Philadelphia, Pa.
For

Nov.

(Offering to stockholders—underwritten by Johnston, Lemon
Co.; Eastman Dillon, Union Securities & Co. and
Abacus Fund) $7,500,000

Bonds

Webster Securities

(Blyth

United

EST)

a.m.

Colorado
&

Securities

Power

Jackson

T. I. M.

(Tuesday)

Government Employees Variable Annuity
Life Insurance Co
Common

Common

Union

Dillon,

Electric

January 20

Common

by Equitable Securities

Pacific Gas & Electric Co._
8:30

Nov. 12 (letter of notification)
stock

★ Flintkote Co.

$5,850,000

(Bache & Co.) 525,000 shares

(Bids

Philadelphia

Productions, Inc

(Offering

the corpora¬

May 21 (letter of notification) 300,000 shares of common
(par 10 cents). Price—50 cents per share. Pro¬
Office — 80 Wall St., New
York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.

nominations

Light ,Co

December

Desilu

expense during the development period of
tion. Underwriter—None.

convertible debentures due 1968.

$159,460,400

December 2

Ettiodont Laboratories, Berkeley, Calif.

Oct.

$1,000,000

Pacific Telephone & Telegraph Co
(Offering

Dillon,

109

Feb. 20 filed 300,000 shares of common stock. Price—
At par ($5 per share).
Proceeds—To cover operating

Nov.

Bonds

Instrument Corp

Belock

Preferred

Debens.

EST) $50,000,000

December

Common

Lomasney & Co.)

—

$70,000,000

SI,250,000

Common

December 10

..Common

Cardinal Instrumentation Corp

Office
Underwriter—None.

★ Financial Industrial Fund Inc., Denver, Colo.

Dominick) $27,500,000

(Auchincloss,

Inc.)

Co.,

Southern Bell Telephone & Telegraph Co

Dominick

Bowl America Corp

and

Cook & Co.; Rcinholdt & Gardner; Stifel, Nicolaus
Inc.; and Scherck, Richter Co.) 100,000 shares

Co.,

Class A Common
Rhoades

Loeb,

Hilsman

and truck research and development.

★ Ferro Dynamics Corp.
Debentures

Space Corp., W. E. HUtton & Co.

Anheuser-Busch, Inc.
&

Arvida Corp.

(Tuesday)

American Art Metals Co
(The Johnson, Lane,

planned.

ceeds—To make loans, etc.

Common

December 9

No public offer

stock

$11,226,000

Corp.)

stockholders—not

173,616 shares

Gas, Elfectric Light & Power Co

per

Federal Commercial Corp.

(Offering to stockholders—underwritten by Kuhn, Loeb & Co.)

Tucson

($10

Light St., Baltimore 2, Md.

West Ohio Gas Co
Common

At par

★ Eshelman Motors Corp.
Nov. 3 (letter of notification) 90,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
car

(Monday)

Inc.)

Blauner

(Equitable

Brothers

364,670

Debentures

National Old Line Insurance Co

Common

Mass.
$7,346,625

Narda Ultrasonics Corp

$30,000,000

stockholders—underwritten

Common

(Blyth & Co.,

(Offering -to stockholders—not underwritten) 133,112 shares

-to

—

5 (letter of notification) 7,500 shares of common
/stock (no par). Price—$24 per share. Proceeds—To sellting stockholders; Office—588 Commonwealth Ave., Bosi tonr Mass.
Underwriter—W. C. Langley & Co., Boston,

Common

underwritten)

Cutter Laboratories

90,218 shares

Checker Motors Corp

(Offering

uv« -&■

Inc

December

Lorillard

shares.

(Offering to stockholders—underwritten by
The First Boston Corp.) $6,035,400
-

Debentures

(Blyth & Co., Inc.)

700,000

(Friday) '

stockholders—not

Laboratories,

Equip. Trust Ctfs.

Co._l

November 26

—..Common

Telephone & Telegraph Co

(Offering

$1,875,000

(Offering to stockholders—no underwriting)

Price

Nov.

Gray Manufacturing Co
Northern

Co.)

December 5

(Tuesday)

CST)

noon

(Thursday)
^

(Dempsey-Tegeler

Carolina

Chicago & North Western Ry

10,000 shares of common
share). Proceeds — For
mining expenses. Office—898 Ridge Rd., Webster, N. Y.
Underwriter—None.
stock.

Preferred

Corp.; Merrill Lynch, Pierce, Fenner
W. Baird & Co.; Inc.; and
Blair & Co.) $5,000,000

Ambassador Oil Corp

Miles
-November

★ Eads Mining Co., Inc.
Nov. 10 (letter of notification)

★ Epsco, Inc.

Common
212,153

$25,000,000

Robert

December 4

(Monday)

Incorporated)

700,000

Bonds

236,000 shares of stock

Co.,

Common

Smith)

World Wide Helicopters Ltd
(Blair

Fenner

William

Industries, Inc.--Debs. & Common

and

Pierce,

Boston

Smith;

(Harriihan Ripley & Co., Inc.) $5,900,000 of debentures
.

Bonds

$10,000,000

Wisconsin Public Service Corp

Common

Reilly,

EST)

a.m.

(Dillon, Read & Co. Inc.)

206,440 shares

$300,000

November 24

Dixon Chemical
-r

Co., Inc.)

•

(Merrill

Common

Northeast Telecommunications,

219,408 shares

Union of South Africa

180,000 shares

Kentucky Utilities Co
and J.

(Bids

Common

Utilities

Public Service Electric & Gas Co

(W. C. Langley & Co.) $1,300,000

Heli-Coil

Common

Montana-Dakota

Debentures

Oct. 31

$5,000,000

(Hornblower <fc Weeks)

Common

(Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc.)

Dynamic Electronics-New York, Inc.
(letter of notification) 99,000 shares of common
stock (par 50 cents).
Price—$3 per share. Proceeds—
For equipping and putting in operation the new plant
and for general corporate purposes.
Office — 73-39
Woodhaven Blvd., Glendale, L. I., N. Y. Underwriter—
Elliott & Co., New York, N. Y. :

Bonds

(Allen & Co. and W. C. Pitfield & Co., Ltd.)

Common

land

6, Ore.
York, N. Y.

Continued

vaae

The Commercial and Financial Chronicle

(2126)

Continued

from

page

Oct.

shares for

18,000 shares will be sold for the company, and 1,000
a selling stockholder. Price—$30.50 per share.
Business—Manufactures and sells formula feeds for live¬

Corp. at the rate of one share
Union stock for each 2.409 shares of Sunrise

Aug. 6 (letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—To erect

of Sunrise Supermarkets

stock.

and operate an activities building, comprising a restau¬

stock.

rant, cocktail lounge and coffee shop. Office—3938 Wilshire Blvd., Los Angeles, Calif. Underwriter—Oscar G
Werner & Co., Pasadena, Calif.

80% of the outstanding Sunrise shares by Dec, 31.

General Acceptance Corp. (12/1-5)
Nov. 10 filed 300,000 shares of voting preferred stock,
convertible series. Price—To be supplied by amendment.
Proceeds—For expansion and working capital. Under¬

writers—Paine, Webber, Jackson & Curtis and Eastman
Dillon, Union Securities & Co., both of New York,
i
General Aero & Electronics Corp.
Sept. 29 filed 500,000 shares of common stock (par 10
cents), of which 100,000 shares are to be sold for the
account of selling stockholders, Price—$2.25 per share.
Proceeds—For acquisition of stock of National Missile &
Electronics Corp., additional working capital and other
corporate purposes. Underwriter—Willis E. Burnside &
Co., Inc., New York.

General Aniline & Film Corp., New York
Jan. 14, 1957 filed 4zo,06b anarea of common A stock

par) and 1,537,500 shares of

common

B stock (par $1)

Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive bidding

Probable bidders: Blyth & Co., Inc., and The First Boaton
Corp.
(jointly);
Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m. (EDT) on
May 13 at Room €54,101 Indiana Ave., N.* W., Washing¬
ton 25, D, C„ but bidding has been postponed.
•

General Public Service Corp.

Oct. 29 filed 2,478,264 shares of common stock being of¬
fered1* for
subscription
to
common
stockholders
of
record Nov. 18, 1958 on the basis of one new share for
each two shares held (with an oversupscription privi¬
lege); rights to expire on Dec. 2. Price—$5 per share.
Proceeds-—For investment. Underwriter—Stone & Web¬
ster Securities Corp., New York.
,,

Grand

The

offer

subject to

acceptance by at

stock, animal and poultry, farm animal shelters and re¬
lated equipment and supplies. Proceeds
For working
capital and general corporate purposes, including the fi¬
nancing of increased inventory and receivables. Under¬
writers—Tabor & Co., Decatur, 111., Fusz-Schmelzle &
Co., Inc., St. Louis, Mo., and Ellis, Holyoke & Co., Lin¬

least

Gray Manufacturing Co., Hartford, Conn. (11/25)
28 filed 90,218 shares of capital stock (par $5) to
offered for subscription by common stockholders oi
record Nov. 25, 1958 at the rate of one new share for
each four shares held.
Subscription period will be ap¬
proximately three weeks after date of issuance of rights,
'or Dec. 16. Price—To be supplied by amendment. Pro¬
ceeds—For general corporate purposes.
Underwriter—
Oct.

None.

,'v

,.'V-

coln, Neb.

ing—Date indefinite.
Industrial

Insurance

jperate graphite and mica properties in Alabama.
& Co. and Carr-Rigdom &

ooth

Oct. 31, 1958; rights to expire on Nov. 21, 1958.

Proceeds—To pay short-term
in domestic

subsidiaries.
Fenner &

Agent—Merrill

Clearing

Lynch,

Pierce,

Smith, New York.

General Sales Corp. *

Nov, 10 {letter of notification) 240,000 shares of common
stock (par 25 cents). Price—$1.25 per share. Proceeds—
To remodel; to purchase inventory; to purchase mailing
lists and for additional working capital.
Office—1105
N. E. Broadway, Portland, Ore. Underwriter—None.
,

-A-Government Employees Variable Annuity Life
Insurance Co.
(1/20)
Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company on or about Jan. 20, 1959 viz:
(1) to holders of common stock (par $4) of Government

Employees Insurance Co.,
share of stock held

on the basis of one warrant per
Jan. 6, 1959 (1,334,570 shares are

outstanding); (2) to holders of common stock (par
$1.50) of Government Employees Life Insurance Co., on
now

the basis of IY2 warrants per share of stock held

6,1959 1216,429 shares

Jan.

outstanding); and (3) to
holders of common stock (par $5) of Government Em¬
ployees Corp., on the basis of % warrant per share of
stock held on J an. 6,1959 (as of Sept. 30, 1958 there were
143,127. shares pf stock outstanding and $614,360 of 5%
convertible capital debentures due 1967, convertible into
shares pf common at $28.0374 per share. If all these
debentures were converted into common stock prior to
the record date, a total of 164,724 common shares would
be outstanding). Price — $3 per share. Proceeds
For
capital and surplus. Office—Government Employees In¬
are now

—

surance

Building, Washington, D. C.
UnderwritersJohnston, Lemon & Co., Washington, D. C.; Eastman
Dillon, Union Securities & Co., New York; and Abacus
Fund; Boston, Mass.
Grain Elevator Warehouse Co.
Nov, 3 filed 100,000 outstanding shares of common stock
(par 10 cents). National Alfalfa Dehydrating & Milling
Co., holder of the 100,000 common shares, proposes to
offer to

its stockholders preferential warrants to sub¬
scribe to 98,750 shares of Grain Elevator stock on the
basis of one warrant to purchase one-eighth share of

Aug. 14 filed $17,000,000 of first mortgage bonds, serie«
A, due 1988. Proceeds—Together with cash on hand, tc
redeem and retire $17,000,000 principal amount of 4%%
first mortgage bonds due 1987. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders:

—

927

Market

writer—None.

★ Grand Canyon Life Insurance Co.
Nov. 6 <letter of notification) 33,750 shares of common
stock (par $1) to be offered to
policyholders, officers
and employees under certain conditions.
Price—$2 per
share. Proceeds—For capital and
surplus. Office—3520
North 16th St.,
Phoenix, Ariz. Underwriter—-None.
Grand Canyon State Insurance Co.
Nov. 6 (letter pf notification) $175,536.50 of Trust
Agree¬
ments (balance of an original
^offering which com¬
menced during 1948, of an indefinite number of Trust
Agreements under the terms of which the trustees agree
to accept and hold in trust for the
policyholder-trustor
all amounts due and to become due the

Statement withdrawn.

Investment Corp.

of Florida
(letter of notification) 55,555 shares of common
stock (par two dents). Price—$4.50 per share. Proceeds
—For

capital account and paid-in surplus. Office—^At¬
Boulevard, Ft.
Lauderdale, Fla. Underwriter—None.
lantic Federal Building, 1750 E. Sunrise

Jantzen, Inc. !
(letter of notification) 938 shares of common
(par $1). Price—At the market. Proceeds—To pay

Oc,t. 21

stockholders

Hamilton Oil & Gas Corp.

stock (par 25
cents). Price—$2 per share. Proceeds—To acquire funds
to test

drill, explore, and develop oil and gas properties.
[The registration includes an ad¬
588,000 common shares issuable upon exercise
of 1,176,000 options rights previously offered (Oct. 19,
1957), which rights entitle the original purchaser
thereof to purchase one-half share of stock at 50 cents
per share at the expiration of 13 months after com¬
mencement of such offering.] Offering—Expected today

Underwriter—None.

(Nov. 20).
Hanna
Oct.

of¬

holders of the latter.

Of the total, 181,606 shares are to
be offered to shareholders of the parent at the rate oi
share for each 16 shares of the parent's stock held

one

remaining 131,432 shares

to be offered to the
minority shareholders of the mining company at the
rate of one share for each 3.45 shares held. The offering
is made to shareholders of record Nov. 7; rights to ex¬
pire on Nov. 21. Price—$68.50 per share. Proceeds—To
reduce bank indebtedness. Underwriter—None.
Pres¬
ent

Name—Company is
Ore Corp.

now

are

known as Hanna Coal &

^Haverhill Gas Co.y Haverhill, Mass. (12/3)
12 (letter of notification) 12,285 shares of capital
stock (par $10) to be Offered for subscription by stock¬
holders of record on Dec. 3, 1958. Price—$20 per share.
Proceeds—To repay bank loans. Underwriter—None.
Heartland

Development Corp.

(letter of notification) 22,820 shares of non¬
convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis
of one share of convertible preference stock for each

voting

1958.

common

stock

held

about

Nov.

Stockholders will have 45 days in which to exer¬
the rights. Price —At par.
Proceeds —To repay

debts, acquisition of investments, and for general pur¬
poses.
Address—P. O. Box-348, Albany, N. Y. Under¬
writer—None.
•

interests

re¬

Kentucky Utilities Co. illfet):.}'■ r,.
206,446 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record Nay. 17, 1953, at the rate of one share for each
12 shares then "held; rights to expire on Dec. 6. Price—
To be supplied by amendment. Proceeds—To be used to
finance part of the company's construction expenditures,
including the payment of temporary bank loans incurred
•

Nov. 3. filed

4c Keystone Custodian Funds; Inc.
- ,7.
Nov.
17 filed
(by amendment) an additional 500,000
Keystone Custodian Fund Certificates of Participation
Series B-4 and', an additional 500,000 Keystone Custodian
Fund Certificates of Participation. Series ,S^1. Price—At
market.

Heli-Coil Corp., Danbury, Conn. (11/21)
24 filed $1,300,000 of convertible debentures

Proceeds—For

investment.

Lake Ontarid Portland Cement

Co., Ltd.
•671;376-shares of common stock and war¬
rants for the purchase of an additional 671,376 shares
to be offered to common shareholders at the rate of one
•

Oct. 29 filed

unit
for

(consisting df one common share and one warrant)
shares held.
Price—To be supplied' by
Proceeds — For construction program' and

each "two

amendment.

Office—Picton, Ontario, Canada.

corporate- purposes.

Undefwdto^None;•

- .

Laughlin Alloy Steel Co., Inc.
Aug. 25 file# $560,000 of 6% subordinated callable debentures due Junh 30,1968, and 150,000 shares of common
stock (par5 10 cents) to be offered in units of $100 of
debentures and 30 common shares. Price—$100 per unit.

Proceeds—/Together with

$175,000 mortgage loan from

the American Brake Shoe Co., will be used to meet ^ex¬
penditures in acquiring latter company's South San
Francisco foundry and for working capital. Offices—Las
Vegas, Nev., and South San Francisco, Calif. Underwriter
—Sam Watsbn Co., Inc., Little Rock, Ark., oh a best
efforts basis, r*
'
:

^ Lexington Funds, Inc., New York
14 filed
(by amendment) an additional 350,000
shares of Lexington Venture Fund and an additional
5,100,000 of Lexington Accumulation Plans wi<h and
Nov.

Oct.

without

Nov.

ceeds—For investment.

Underwriter—W. C. Lang-

ley & Co., New York.

Heliogen Products, Inc.
(letter of notification) 28,800 shares of common
stock
(par $1),
Price—$5 per share.
Proceeds—For
payment of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,
11 Broadway, New York 4, N. Y.
Oct. 22

Hoagland A Dodga Drilling Co., Inc.
June 12 filed 27,000shares of capital stock.

Price—$10
share. Proceeds—-To be used in part for the ex¬
ploration of mines and development and operatibn oi
mines and in payment of indebtedness. Office—Tucson
per

Ariz.

Underwriter—None.

Homo-Stake Production Co., Tulsa, Okla.
Nov. 5 filed 116,667 shares of common stock (par $5).

sj«rt an insurance company. Office—3520 North 16th St.,
phoenix, Ariz. Underwriter—None.

general

for

Nov.

cise

fractional

irdm thd 4%

Underwriters—Blyth & Co., Inc., New
York, and J.'J.' B. Hiliiard & Sons, Louisville, Ky.
'

17 filed 313,038 shares-of common stock being

Oct.

for their

cash

for that purpose.

Mining Co., Cleveland, Ohio

fered for subscription by company's shareholders (othei
than the M. A. Hanna Co., the parent), and by the stock¬

The

stock dividend of Nov. 1, 1958.
Office—411 N.:E. 19th Avenue, Portland, Ore.
Under¬
writer—Merrill Lynch, Pierce, Fenner & Smith, New
York, NvY:
-'rf
;"
t:"'"
sulting

ditional

stock

policyholderdividend, etc.). Pro¬
ceeds—Aggregate not to exceed $300,000 to be used to

trustor under special provision for

Y.j

Oct. 9

Halsey, Stuart & Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith and White, Weld & Co
(jointly); Stone & Webster Securities Corp.; and Salo¬
mon Bros. & Hutzler and Eastman Dillon, Union Se¬
curities & Co. (jointly). Bids—Had been expected to be
received on Sept. 15. but has been indefinitely post¬

ness—Manufacturer of tools.

Office

(N.

capital and to enlarge research and
development department. Underwriter
S. D. Fuller &
Co., New York. Offering—Being held in abeyance..

Gulf States Utilities Co.

Price—$2

Proceeds—To selling stockholder.
Street, Wilmington, Del. Under¬

best efforts basis:

ceeds—For Working

•

Grain Elevator stock for each share of National Alfalfa
common held on Nov. 17,
1958; rights to expire Dec. 31.

share.

C., on

C'nCo.,

writer—None.

due
1, 1973 and 180,000 shares of common stock (par
$1). Price—To be supplied by amendment. Proceeds—
For working capital and other corporate purposes: Busi¬

per

of Washington, D.

Industro Transistor Corp.

Oct. 22 filed 1,000,000 shares of common

Washington, D. C.

Feb. 28 filed 150,000 shares of common stock (par 10
cents). Price—To be related to the market price. Pro¬

(par $5) being offered for subscription by common stock¬
holders at the rate of one new share for each 20 shares

bank loans and for additional investments

-v;

organizers,
incorporators,
management
and/or directors. Price—$10 per share. Proceeds—Foi
working capital and general corporate purposes. Under¬

poned.

Price—$38.50 per share.

Minerals Corp.,

ierwriters—Dearborn

warrant

July 24 filed 600,000 shares of common stock (par one
:ent). Price—$1 per share. Proceeds—To develop and

Corp., Baltimore, Md.
A.ug. 16, 1957, filed 300,000 shares of common stock, j)
which 200,000 shares are to be publicly offered and tht
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which are to be sold at 25 cents per
Guardian

Electric Co.
Sept. 26 filed $20,000,000 of first mortgage bonds du/e
Nov. 1, 1988. Proceeds—To retire bank loans used for
construction program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Eastman Dillon, Union Securities & Co.; The
First Boston Corp.; Harriman Ripley & Co. Inc.
Offer¬

:?,>v

Indiana & Michigan

^'Guaranty Life Insurance Co. of America
Nov. 14 filed 88,740 shares of class A common capital
stock (par $1.80). Price—$5.35 per share. Proceeds—To
increase capital and surplus.
Office—815 15th Street,
N. W., Washington, D. C.
Underwriter—None.

General Public Utilities Corp.
Oct. 1 filed a maximum 530,000 shares of common stock

held

1958

which

Nov.

29 filed 187,534 shares of common stock (par $5)
to be offered in exchange for outstanding common stock

Fremont Valley Inn

Thursday, November 20,

Honeggers' & Co., Inc., Fairbury, III.
7 filed 19,000 shares of common stock, of

Union Co.

Grand

...

Price—$6

share. Proceeds—For working capital and
purposes.
Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None.
per

corporate

insurance

protection.

Price—At market.

Pro¬

Life Insurance Securities Corp.

1,000,000 shares of capital stock (par $1).

March 28 filed

Price—$5 per share. Proceeds—To acquire stock control
)f "young, aggressive and expanding life and other inmrance companies and related companies and then to
operate such/companies as subsidiaries." Underwriter—
first Maine Corp., Portland, Me. ■
.

Ling.Electronics, Inc..
Oct. 28 filed $922,500 of 53A% subordinated convertible
debentures due Dec. 1, 1970, to be offered in exchange
on
the basis of equal principal amounts for the out¬
standing 3% convertible subordinated income notes due
1967 of the Calidyne Co., Inc., a subsidiary The cpmpany will-offer to purchase
at face - value Galidyrie
notes from those'stockholders who desire to.sell their
notes-for cash/ at
cipal amount,
.

Lorillard

price equal to 100% of their prin¬

a
.

Co., New York (1.1/26)
Nov. 5 filed 364,670 shares of common stock ,(par $10),
to be offered for subscription by common stockholders at
the rate of. one new share for each eight shares held on
Nov. 25;

(P.)

rights to expire on Dec. 9.

Price—To be sup-

Volume 188

Number

plied by amendment.
funds of the

company

5796

The Commercial and Financial Chronicle

Proceeds—To be added to general
and used for corporate, purposes,

including reduction of' short-term
writers-r-Leimian
both

New

Brothers

and

bank

Smith,

loans.

Barney

of Montana.

price

Los

Angeles Drug Co.
Oct. 3 filed 50,000 shares of
capital stock, to be offered
for subscription by holders of
outstanding stock, on a
pro rata basis. Any shares not so sold will be offered on

exchange basis

Nov.

Inc.

—

Motion

exchange for

'i»—None.■

Nardo

Nov.

filed

Price

•

LuHoc Mining Corp.
Sept. 29 filed 350,000 shares of common stock. Price—$1
per share. : Proceeds— For the acquisition of properties
under option and for various
geological expenses, test

60,000

Oct.

share.

per

June 4

•

Heller & Co.
Underwriter—Plymouth Bond
Corp., Miami, Fla.
r

(par

cents).

Price—$4

share.

per

common

Proceeds—

stock

(par

Milton

Blauner

Corp., Milwaukee, Wis.

At par

Nov. 10 filed 501,500 shares of common stock
(par $10)
to be offered in exchange for all the issued and outstand¬

penses

and

par

procure

Co., Inc. and
York, and six other

Bldg., New Orleans 12, La.

filed

exchange: (1) two shares for each of
220,000 outstanding shares of Marine National Ex¬
change Bank of Milwaukee, $20 par; (2) 22 shares for

Corp.

50,000 shares of common
(50 cents per share). Proceeds—
persons to implement and carry

(12/8-16)

515,021

($1 per share). Proceeds—For organizational ex¬
and first three months' operational expenses. Of-

Blvd., Los Angeles 17, Calif. Under¬
Co., Sail Francisco 4, Calif.

Nedow Oil Tool Co.

Pacific

Gas

Electric Co.

(12/2)

Nov. 7 filed

$50,000,000 of first and refunding mortgage
bonds, series DD, due June 1, 1990. Proceeds—For cost
of ut>_ity property additions. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc. and The First Boston Corp. (jointly);
Blyth & Co., Inc. Bids—Expected to be received up to
8:30 a.m. (PST) Dec. 2.
,.t

Pacific Telephone & Telegraph Co.
24 filed 1,594,604 shares of common

(12/1)

Oct.

stock

subscription by holders of outstanding com¬
and preferred stock of record Nov. 26, 195$ on the
basis of one new share for each eight common Or pre¬

mon

Pearl

writer—Waldron &

indicated ratios of

the

fMay 5 (letter of notification)

150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
outstanding shares of Cudahy State
pay
loan; to acquire fishing tools for leasing; and for
Bank, Cudahy, Wis., $100 par; (3) three sharesTor each
/working capitaK Office—931 San Jacinto Bldg., Houston,
i
of the 7,500
outstanding shares of Holton State Bank,
Tex. Underwriter—T. J, Campbell Investment Co., Inc.,
cMilwaukee, $20 par; and (4) 17 shares for each of the
Houston, Tex.
v.
./
i
1,000 outstanding shares of South Milwaukee Bank,
New Zealand
South Milwaukee, $100 par. Each of the
(Government of)
exchange pro¬
Noy, 7 filed $10,OQO,000_12Lry e^r* bonds■ due. Dec. l. 1970.
posals is conditioned /(among other things > upon ex¬
Price—To be supplied by amendment.
Proceeds—For
changes being made with the holders of not less than
capital works and expenditures. Underwriter—Kidder,
80% of the stock of the bank with respect to which the
Peabody & Co., New York. Offering — Expected today
proposal is made.
/
of the

Commerce

offered for

projected plan

■fice—1250 Wilshire

ing shares of capital stock of the following banks at the

each

Enterprises Inc.
March 6 (letter of notification) 23,200 shares of eoittmon class B stock (par $1).
Price—$5 per share. Pro¬
ceeds—For completion of plant plans; land; construc¬
tion and operating expenses.
Office—2502 N. Calvert
St., Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.
.'

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—

;

Marine

common

outstanding shares of class BB
common
stock.
Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Office—Capital Ave.
and Wood Lane, Little Rock, Ark. Underwriter—Equit¬
able Securities Corp., Nashville, Tenn.
Offering—Ex¬
pected the second or third week of December.

and

National.Old Line Life Insurance Co.

Nov.

new production
equip¬
working capital. Office—900 Leesville Ave.,
Railway,: N. • J. -Underwriter—Berry & Co., New7' York,

—

Office—1406

For: purchase and installation of
ment

of development and operation.
St.,' Boulder, Colo.
Underwriter—
•Western Securities Co/ Boulder, Colo.

Co., Inc., Miami/Fla.•
100,000 shares of common stock. "Price—$5
Proceeds—To reduce current indebtedness to

Walter E.

stock

the

out

Un¬
■*

■

(letter of notification)

train

•

— To be supplied by amendment. Proceeds
Microwave Corp., the selling stockholder.

Price—At

'stock.

^Marcus Transformer Co., Inc.
Nov. 6 (letter of
notification) 75,000 shares of

-/• •••••••'•..

(12/8)

National Educators Finance

6 filed

& Share

Corp.

• •

Michael G. Kletz & Co., both of New
■.underwriters. '
"./i

M. C. A. Credit

■' •/•

Ultrasonics

Narda

—To

drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del.,, and Emporium, Pa.
Underwriter—None.
"1.",
•,' /
o
:

•'••••• % •'•

icents).

Light; Bldg., Kansas City, Mo.

•

Inc.

derwriter—None.

Underwriters

Investors

fice—1000 Power &

capital stock of ...Wamsucta
Mills on the basis of 1)4 shares for each Wamsuita
share,
Office—1430 Broadway, New York, N. Y. Underwriter
one

Picture

July 11 filed 200,000 shares of common stock (par $1)
Price—$10.75 per share. Proceeds—For investment. Of¬

Bank

Underwriter—Assets Investment Co., Inc., New Orleans,

O. T. C.

17 filed

120,000 shares of common stock (par $1).
Price
To be supplied
by amendment. Proceeds — To
selling stockholders.-Office—2101 Hudson Street, Lynch¬
burg, Va, ? Underwriter—Johnson, Lane, Space Corp.,
Augusta, Ga.
•
''V'-'

7.f leeter of notification) 3,225 shares of. common
(par si) to ce offered on a basis of lVf shares in

stock

tional

ing 5% sinking fund debentures and $189,200 to reduce
short term bank loans.
Office—Los Angeles, Calif. Un¬
derwriter— Quincy Cass
Associates, Los Angeles, Calif.

Sons,

Co., Inc.

Nov.

holders of outstanding 5%:sinking
fund debentures. Price—$10.50
per share to stockholders,
$11.50 to public. Proceeds—$328,300 to redeem outstand¬

Oil, Gas & Minerals, Inc.
(letter of notification) 150,000 shares of common
stock (par 35 cents).
Price—$1 per share. Office—-Na¬

La.

^ Morton Manufacturing Corp.

ir Lowenstein ,vM.)

Nov. 4

Co.,
'

Price—To be related to the current market

the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction
program
through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth

Under-

York.

(2127)

1,000

ferred

shares held; rights

will expire

1958.

Dec. 30,

Price—At par ($100 per share). Proceeds—To repay ad¬
vances from American Telephone & Telegraph Co.
Un¬
derwriter— None.

Control —Of the 832,000 shares of
preferred stock (par $100) and 11,936,835 shares of
common stock (par $100) outstanding as of Oct. 24, 1958,
there were owned by the American Telephone & Tele¬
graph Co. 640,957 prefeived shares and 10,790,943 com¬

mon

shares.

■

Panama

(Republic of)
Oct. 9 filed $16,700,000 of external secured bonds of 1958
to mature April 1, 1988.
Price — To be supplied byamendment.
debt

and

Proceeds

—

Panama's

for

writer—Lehman

retire

feeder

certain

road

outstanding

program.

Brothers, New York.

Under¬

Offering—Tem¬

porarily postponed.
•

Papercraft Corp., Pittsburgh, Pa. (12/2)
12 filed 250,000 shares of common stock (par $1),
supplied by amendment. Proceeds—To sell¬
ing stockholders. Business—The corporation is a leading
manufacturer and distributor of gift wrapping products
for all occasions.
Underwriter—Eastman Dillon, Union
Securities & Co., Chicago, 111.
Nov.

Price—To be

Packman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).

Price—At

market.

Proceeds—For

investment.

Under¬

writer—Investors Investments Corp., Pasadena,
Peninsular Metal Products Corp.
6 (letter of notification) 10,000 shares

Oct.

stock

new

Dec.

15, 1958.

one

for

15,' 1958

the basis of "one

each five shares held; rights to expire
Unsubscribed shares may be offered to

selected by the board of directors.
Price—$1.40 per share. Proceeds—To reduce bank loan;
to increase working capital and for
general corporate
or

purposes.

persons

marina.

Office

Room

104, Old
Bldg., Baltimore 2, Md. Underwriter—Mary¬
Securities Co., Baltimore, Md.
—

stockholders

of record Dec. 4, 1958 in the ratio of
debenturse for each 20 common shares held;
rights will expire on Dec. 19, 1958. Price—To be supplied
by amendment. Proceeds—For expansion program and
general corporate purposes.
Underwriter — The First
mon

Boston

Corp., New York.

Montana-Dakota
Nov. 7 filed

1983.

the

Utilities

(12/3)

$10,000,000 of first mortgage bonds due Dec.

Proceeds—To

amount

Co.

repay

short-term bank loans

$9,000,000 and for construction

program.

Underwriter—To be determined by competitive bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Smith and Kidder,
Peabody & Co. (jointly); Blair & Co. Bids—Expected
-to be received up to 11 a.m. (EST) on Dec. 3.
•

Montana

—

repay $15,500,000 in bank loans and to carry
on
the
company's construction program through 1959. Underwriter—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.;
Merrill Lynch, Pierce, Fenner & Smith, and Stone &

Webster Securities Corp.

(jointly); White, Weld & Co.;
Dillon, Union Securities & Co.; Kidder Peabody & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room 2033, Two Rector St.,
New York, N. Y., but company on Aug. 22 again decided

•Eastman

to defer sale

pending improvement in market conditions.

Montana Power Co.
stock

will

offered

if Northwest Airlines,

Inc.
(12/8)
Nov.
13 filed 449,040 shares
of cumulative preferred
stock, convertible series (par $25) to be offered for sub¬
scription by common stockholders on the basis of one
preferred share for each three common shares held on
Dec. 5; rights to expire on Dec. 22.
Price—To be sup¬
plied by amendment. Proceeds — Together with other
funds, to liquidate the borrowing under the present
credit agreement with banks now amounting to $34,000,000, and the.balance, together with cash generated from
depreciation and retained earnings will be applied to¬
ward the acquisition of the new turboprop and turbojet
aircraft and related spare parts, equipment and ground
facilities, and for other corporate purposes. Underwriter
—The First Boston Corp., New York.

common

only

stock

to bona

(no

par)

fide residents

Office—1365

Underwriter—Wm.

Jarvis, Ferndale, Mich.
Detroit, Mich.

C. Roney & Co.,

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.
Proceeds—To redeem a like amount of 5% first mort¬

bonds due

gage

1987.

Underwriter—To be

determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld & Co.;
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Dean Witter & Co. (jointly).
Bids — Tentatively
had been expected to be received up

Aug. 27 but

(EDt1)""

to 11 a.m.

decided to
sale pending improvement in market conditions,
on

company

Aug.

defer

i Peterson-Vogel, Inc.
(letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For pur¬
chase of car wash plants, accounts payable, working cap¬
ital, etc. Office — 710 S. Fourth St., Las Vegas, Nev.

(par 10 cents). Price—$1 per share. Proceeds—
For acquisition of additional gas and oil interests and
corporate administrative expenses.
Office—150 Broad¬

New York 38, N. Y. Underwriter
Co., Inc., New York 5, N. Y.
way,

—

Greenfield &

Ridge, Inc.
Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1). Price — $3 per share. Proceeds — For
working capital.
Office—11 Flamingo Plaza, Hialeah,
Fla.
Underwriter
Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla.
—

i Odlin Industries, Inc.
and

filed

$250,000 of 5V2%

250,000 shares of

common

—Debentures at 100%

* Philadelphia Electric Co. (12/16)
Nov. 13 filed $50,000,000 of first and refunding mortgage
1, 1986. Proceeds—To be used to finance
construction program and to repay bank loans. Under¬
writer—To be determined by competitive bidding. Prpbable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and Drexel & Co.
(jointly); The First Boston
Corp.; White, Weld & Co. Bids—Expected to pe received
up to noon (EST) on Dec. 10.

bonds due Dec.

Pioneer
10

stock, series A (par $100) and $1,000,000 of 8% subordin¬
debentures, series A, due Dec. 1, 1968 to be offered
in units of a $500 debenture and five shares of pre¬

ated

ferred

stock.

debentures

stock (par 10 cents).

Price
share. Pro¬

and stock at $3 per
a textile mill, machinery, equipment
materials, and to provide working capital. Office
—375 Park Ave., New
York, N. Y. Underwriter—Harris
ceeds—To purchase
raw

Securities Corp., New York, N. Y., on a best efforts basis.

Price—$1,000

general corporate

purposes.

Corp.

per unit.
Proceeds
Underwriter—None.

—

For

(11/26)

Nov. 6 filed 173,610 shares of common

stock (par $1) to
subscription by common stockholders of
record Nov. 25, 1958 on the basis of one new share for
each 21 shares then held; rights to expire on Dec, 9.
Price—To be supplied by amendment.
Proceeds-^For
expansion and working capital. Underwriter — Kuhn,
Loeb & Co., New York.
be

offered

for

de Leon Trotting

Association, Inc.
<
(par one
cent). Price—$1.50 per share. Proceeds—To pay current
liabilities, for new construction and working capital.
Office—Bayard, Fla.
Underwriter—Robert L. Ferman
Co., Inc., Miami, Fla.
Ponce

convertible

Trading Corp., Bayonne, N. J.
10,000 shares of $8 cumulative preferred

filed

Polaroid

Oak

Nov.

Underwriter—None.

Nov.

stock

and

July 1 filed 100,000 shares of
The

Hoffman

Aug. 22 (letter of notification) 300,000 shares of common

•

Reilly,

Northwest Gas & Oil Exploration Co.

Power Co. \

July 1 filed $20,000,000 of first mortgage bonds due 1988
Proceeds
Together with other funds, to be used to
-

(par $1). Price—At market (not to exceed an ag¬
gregate of $100,000). Proceeds—To a selling stockholder.

Nov. 3

.ir Miles Laboratories, Inc.
(12/5)
Nov. 14 .filed $6,035,400 of convertible subordinated de¬
bentures due 1978, to be offered for subscription by com¬
$100

and

Natural Gas Co., Omaha,

Neb* (11/25)
sinking fund debentures, due
Nov. 1, 1978. Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans incurred for payment of
1958 construction costs, including the purchase of securi¬
ties issued by subsidiary companies for their construc¬
tion costs, and for other corporate purposes.
Under¬
writer—Blyth & Co., Inc., New York.

Town Bank
land

Northern

Nov. 5 filed $30,000,000 of

Mid-Atlantic Marina, Inc., Baltimore, Md.
Oct. 28 (letter of notification) 60,000 shares of 7% pre¬
(par $3.50), Price—$5 per share. Proceeds—
of

Telecommunications, Inc. (11/21)
Oct. 20 (letter of notification) 300,000 shares of common stock (par 10 cents). Price—$1 per share. Proceeds
—To complete a two - way
telecommunication mobile
unit; for test equipment and for working capital. Office
—122 E. 42nd St., New York, N, Y.
Underwriters —

•

ferred stock

construction

Northeast

Pearson, Murphy & Co., Inc.
Co., Inc., both of New York.

Office—617 W. 7th Street, Los Angeles, Calif

"Underwriter—None.

For

(Nov. 20).
•

(letter of notification) 159,395 shares of common
(par 25 cents) to be offered for subscription by

stockholders of record Oct.

- %
of common

stock

Merchants Petroleum Co.
Oct. 8

Calif.

Aug. 7 filed 400,000 shares of common stock

Continued

vaae

The Commercial and Financial Chronicle

(2128)

Continued from page
•

Electric

Potomac

Power Co.

(12/2)

$25,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for construc¬

1.993.

Underwriter—To be determined by com¬

program.

petitive bidding. Probable bidders: Halsey, Stuart &
Co., Inc.; Harriman Ripley & Co., Inc.; The First Boston
Corp.; Kidder, Peabody & Co., Merrill Lynch, Pierce,
Fenner en £>nuch, Vvniie, Yvelci <x Co. and Salomon Bros.
& Hutzler (jointly); Lehman Brothers and Eastman Dil¬

Securities & Co. (jointly); Dillon, Reed &
Co., Inc. and Johnston, Lemon & Co. (jointly). Bids—
Expected to be received up to 11 a.m. (EST) on Dec. 2.
lon, Union

Prairie Fibreboard Ltd.

Prov¬

Saskatchewan and Alberta and to
residents of the United States "only in the State of North
Dakota."
Price — $3 per share.
Proceeds — For con¬

Saskatchewan,
United
Securities, Ltd., both of Saskatoon, Canada.
struction

•

Office —Saskatoon,

purpose.

Underwriter—Allied Securities Ltd., and

Canada.

Sept. 8 filed 250,000 shares of common

stock (par $1).

Proceeds—To increase capital and
Office—Colorado Springs, Colo. Underwriter

surplus.'

Statement effective Nov. 7.

^•Public Service Electric & Gas Co. (12/3)
Nov. 13 filed 700,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds — For
Construction program.
Underwriter — Merrill Lynch.
Pierce, Fenner & Smith, New York.
$1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denominations

$500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwritei
—Rassco Israel Corp., New York, on a "best efforts"
basis.
Offering—Expected late this year.

Relur Corp.

notification) 150,000 shares of common
— $2 per sare.
Proceeds —
capital. Office—1007 South

stock (par five cents). Price
For inventories and working

Avenue, Hollywood, Fla. Underwriters—H. J. Wein¬
berger Co., Jersey City, N. J., and Walter, R. Blaha &
21st

Co., Inc., Long Island
?

Remo

Corp.,

City? N; Y.

Orlando,

s:* *ry

Fla.

Sept. 22 filed 100,000 shares of class A common stock.
Price—To be supplied by amendment.
Proceeds—For
working capital. Underwriter — Citrus Securities Co.,
Orlando, Fla.

it Revlon,

Inc.

18 filed

140,000 shares of common stock, to be of¬
fered to employees of the company and its subsidiaries

Nov.

the rate of

one

new

share for each three shares held

(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay

other indebt¬

edness, and the balance if any will be added to working
capital. Underwriter — Pacific Securities Ltd., Van¬

Canada.

couver,

Rocky Mountain Quarter Racing
31, 1957 (letter of notification)
stock. Price—At par ($1 per
t4Fo repay outstanding indebtedness.
Colo.
Underwriter—R. B. Ford Co.,
Memphis, Tenn.

Oct.

common

Routh

Robbins

Association
300,000 shares of
share). Proceed!
Office—Littleton.1
Windover Road

Plan of

Bell

★ Southern

writer

Arenas

5% debentures due 1973, 4,000
stock (par $100) and 48,000
shares of common stock (par $1) to be offered in units
of $8,000 of debentures, 20 shares of preferred stock and

Inc.

240

common

stbefk." PMce—1$10,*240

per

unit.

acquire, own and operate interests in pro¬
ducing oil and. gas properties. Underwriter—None: Of¬
fice—11 Conlmeree Street, Newark, N. J
Timothy H.
Dunn is President. Statement to be withdrawn.
Proceeds—To

rate

for

1958; rights to expire on Dec. 15.

Nov. 25,

promissory notes.
The

also

covers

Underwriters—Blyth & Co., Inc. and
Corp., both of New York.

First Boston

tion

regular full time employees, including officers
company.]

Tungsten Mountain Mining Co.
11 (letter of notification) 100,000 shares of com¬
stock (par $1). Price—$1.50 per share. Proceeds—

Stanway Oil Corp.

Aug.

Oct. 20 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For pur¬

mon

To extinguish present indebtedness, increase reserve for
contingencies and working capital. Office—511 Securi¬
ties Bldg., Seattle 1, Wash.
Underwriter—H. P. Pratt
& Co., 807 Hoge Bldg., Seattle 4, Wash.

chase of Cadillac Oil

Co., working capital, etc. Office—
Blvd., Los Angeles 46, Calif. Underwriter—
None. Offering—Temporarily suspended by SEC on Nov.
9151 Sunset

17.

Union Finance Corp., Tampa,

it Sterling Hardware Co., Inc., Hazard, Ky.

Strategic Minerals Corp. of America, Dallas, Tex.
$2,000,000 of first lien mortgage 6% bondi
and 975,000 shares of common stock (par 10 cents). Prl««
—For bonds, 95% of prinemal amount; and for stock $1
per share. Proceeds—To erect and operate one or mort
chemical processing plants using the Bruce - Williami
Process to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc.. Austin, Texas.
4

Fibers,

general funds of the company and initially used to reduce bank loans and short term notes;
Underwriter—
Beil &

(letter of notification) 15,700 shares of common

retire outstanding debts and for working
Office—Fifth Ave., Chardon, Ohio. Underwriter

Proceeds—To

capital.

Super Food Services, Inc.
Oct. 28 filed 110,000 shares of preferred stock, first series,

110,000

number of

warrants,

common

first

series,

purchase

Hough, Inc., St. Petersburg, Fla.

Union
Nov.

Offering—Ex¬

shares to be offered in units of

like
one

of South Africa

10 filed

(12/3)

$25,000,000 of External Loan Bonds dated

1, 1953 and due in 1961, 1962, 1963 and 1968. Pricesupplied by amendment. Proceeds—To meet the
Union's capital requirements. Underwriter—Dillon, Read
& Co. Inc., New York.

Dec.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, includini
office furniture, fixtures, equipment and office space, by
lease or purchase. Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., lfl
President.

Inc.

stock to be offered by company for subscription by stock¬
holders of record Nov. 17, 1958 at the rate of one share
for each two shares held. Price—At par ($10 per share).

and

Structural

Fla.

Sept. 26 filed $500,000 of 6% 20-year sinking fund con¬
vertible capital debentures due Oct. 15, 1978. Price —
100% and accrued interest. Proceeds—To be added to the

pected this week.

(letter of notification) 1,881 shares of class B
stock (par $10) to be offered to employees pur¬
the Employees Stock Purchase Plan, of which
579 shares are to be offered at $19.77 per share and the
remainder at $19.84 per share. Proceeds—For working
capital. Underwriter—None.

Nov.

[Registra¬

11,000 additional common shares to be

offered to

None.

State Life, Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of common
6tock (par $1). Price—$5 per share.
Proceeds—To be
invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678, Gulfport,
Miss. Underwriter—Gates, Carter & Co., Gulfport, Min

Price—To be

supplied by amendment. Proceeds—To be added to gen¬
eral funds of the company and used for payment of

Arenas
(Delaware)
Inc.
.
461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y.
Underwriter—
•

5 filed

fered

13 filed

Nov.

Electric Light & Power Co. (11/26)!
110,000 shares of common stock, to be of¬
subscription by common stockholders at the
of one new share for each 10 shares held of record

Tucson Gas,
Nov.

it Sports

con-

de¬

Corp., Newark, N. J.

Triton

1 filed $1,600,000 of
shares of 6%
preferred

None.

suant

new

•

Aug.

United Security Life & Accident Insurance

Co.

120,000 shares of class A common stock.
Proceeds—To provide the reserves
required to be held in life and accident insurance poli¬
cies, and to pay the necessary expenses in producing
insurance.
Office—Louisville, Ky. Underwriter—None.
Aug. 22 filed

Price—$3 per share.

Edmond M.

Smith, is President.

it; United States Freight Co. (12/2)
Nov. 13 filed 210,000 shares of capital stock (no par) to
be offered for subscription by stockholders on or about
2, 1958, at the rate of one new share for each
held, rights to expire on Dec. 16. Price—To
supplied by amendment. Proceeds — Some $750,000
will be used to prepay conditional sales contracts for

Dec.

preferred share and one warrant (warrants are exercis¬
able at $2.50 per common share).
Price—$20 per unit.
Proceeds—To purchase outstanding shares of F. N. John¬

four shares

Underwriter—W. H. Tegtmeyer & £o., Chicago,
[In addition, the company is offering warrants to
purchase 6,347 common shares to holders of class A cap¬
ital stock, if converted to common shares on or before
Dec. 31, 1958; and warrants to purchase 6,000 shares are
being given to Central Illinois Securities Corp., which
has subscribed to 25,000 of the units being offered. A

trailers, tractors and miscellaneous equipment previously
acquired by the company for use in "piggyback" opera¬

son

$1,000,000 of the

Mart, Inc., Boulder, Colo.

Co., Boulder, Colo.

Paine, Webber,, Jackson &

(Delaware)

Andersen-Randolph

shares of common stock (par $5).
Price—$10 per share. Proceeds—For working capital and
construction program.
Underwriter—Allen Investment

program

Underwriters—Stone

—

10 filed 500,000

Nov.

supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspottcrs, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to
expand two present establishments by increasing
the number of alley beds by eight at Yorktown Heights
and by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 tor deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter—

Underwriter—Kay & Co., Inc., Hous¬

additional

& Co., Inc.,

for the payment of bank loans

therewith.

Underwriter
Salt Lake City, Utah.

corporate purposes.

Tower Merchandise

Insurance Co.

Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for genera)

(12/2)

common

5% debentures due March 1, 1967 (the
exchange offers are to be supplied by

—

St., Morristown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
"+;

18 filed $2,000,000 of 6% KV-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be

Sheraton Corp. of America

the

Co.

the company's construction

connection

it Sports

Oct. 24 filed

and

of notification) 27,272 shares of 70?cenl
stock (par $5) and 27,272 shares
of common stock (par 10 cents) to be offered in units
of one share to each class of stock. Price—$11 per unit
Proceeds
For working capital.
Office—111 E. Main

Nov.

ton, Tex.

Telegraph

Timeplan Finance Corp.

Curtis, both of New York.

Sept. 26 (letter of notification) 3,567 shares of common
stock (par $1).
Price—$18.75«per share. Proceeds—To
go to a selling stockholder. Office—400 W.
Vickery Blvd.

1967,

Price—
Proceeds—For working capital. Office—
St., S. W., Atlanta, Ga. Underwriter—

March 25 (letter

of 35-year debentures due Dec.

Webster Securities Corp. and

Underwriter—None.

amendment).

Whitehall

cumulative preferred

determined

during 1957 and 1958

—None.

bidders:

in connection with

$100 to $1,000.
Price—At par.
Proceeds—
For working capital. Office—36 Lowell
St., Manchester,

terms

one

shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, will be applied to the
payment in part of obligations incurred or to be incurred

inations of

$50 debenture and

Nov. 10 filed 50,000

Nov.

$26,500,000 of 7%% capital income sinking
The company proposes to offer
$8 000,000 of the debentures in exchange for outstanding
common shares and an additional
$4,000,000 in exchange
for outstanding 4%% convertible
debentures due March

two

$60 per unit.

by competitive bidding.
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co. Bids—Tentatively scheduled to be re¬
ceived at Room 2315, 195 Broadway, New York, N. Y.,
up to 11 a.m. (EST) on Dec. 9.

it Seacoast Investment Corp.
10 (letter of notification)
$250,000 of 10-year 7%
registered series notes to be offered in varying denom¬

—

Probable

held; rights
Price—$20 per share. Pro¬
installation, construction and working cap¬

debentures.

principal amount of debenturei
stockholder? on the basis of one unit for
shares of stock owned (500 of the shares ar«

being offered to the President of the company).

1, 1993. Proceeds—To repay outstanding advances from
American Telephone & Telegraph Co., and the balance
will be used for general corporate purposes.
Under¬

Underwriter—None.

fund

Telephone

Nov. 14 filed $70,000,000

share for each three shares

Worth, Tex.

each

Elmsford, Inc., New York

March 31 filed

Life

May 26 (letter of notification) 1,250 shares of common
(par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one

■tock

None.

Nov.

Fort

Co.

stock. Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
Inc., New York.

will expire on Oct. 31, 1958.

Service

Thomas Paint Products Co.

to be offered in units of

Telephone Co., Knox, Pa.
Sept. 29 (letter of notification) 3,000 shares of common
(par $10) to be offered to stockholders on the

N. H.

filed 300,000

Underwriter—Peter Morgan & Co., New York.

capital.

best efforts basis.

of preferred

stock

ital.

Dallas, Tex.

shares of common stock (par $1).
Price—$3 per share. Proceeds—To retire current liabil¬
ities and for drilling and exploration costs and working
12

643

Rural

ceeds—For

Surrey Oil & Gas Corp.,
Nov.

stockholders on a pro rata basis. Price—
Proceeds—For working capital. Office — 3172
Chicago 14, 111. Underwriter—None

Sire

writer—None.

one new

this week.

Nov. 10 filed $250,000 of 6% 10-year debentures and 5,000 shares of 6% participating preferred stock (par $50)

V vertible debentures and 99,998 shares of common stock
Price—Of debentures, at par (in units of $100 each);
and of stock, $1 per share. Proceeds — For investments
and working capital.
Office—Alexandria, Va. Under¬

basis of

exchange for said class A
'Offering—Expected

to be offered to

Investment Corp.

Sept. 22 filed $1,000,000 of 10-year 6% cumulative

share of stock and $50

June 26 filed 1,998,716 shares of common

stock (par $1)
Of this stock, 1,174,716 shares are to be sold on behalf o 1
the company and 824,000 shares for the account of cer¬
tain selling stockholders. The company proposes to offer
the 1,174,716 shares for subscription by its shareholder*

Thursday, November 20, 1958

share for share basis.]

tion by common

Petroleum Ltd., Alberta, Canada

Richwell

At par.

pursuant to the company's Executive Stock Option Plan.

Hotel

Sheridan-Belmont

shareholders

capital

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for subscrip¬

made

Oct. 16 (letter of

Underwriter—Sheraton Se¬

curities Corp., Boston, Mass, on a

it Southern Colorado Power Co.

Rassco Financial Corp.
June 26 filed

•

employees

(12/9)

Price—$4 per share.
1—None.

company

cipal amount. Proceeds — For general corporate pur¬
including the financing of the cost of any acquisi¬

tions and new construction.

Risk Life Insurance Co.

Preferred

poses,

$1.50)

Manitoba,

offered

North Sheridan Rd.,

Aug. 18 filed 209,993 shares of common stock (par
to be offered for sale to residents of Canada in the
inces

are

offering price equal to 95% of principal amount.
The remaining $13,500,000 of debentures, plus any part
of the $12,000,000 not taken pursuant to the exchange
offers will be offered for public sale at 100% of prin¬

filed

Nov.

tion

bentures

...

Co.

111.
'

total of 42,356 common

are

being offered to class

tions, and approximately $1,750,000 will be applied to
additional "piggyback" equipment, the balance will be
used for general corporate purposes, primarily as addi¬
tional working capital to finance expmided "piggyback"

operations. Underwriter—Merrill Lynch, Pierce,
& Smith, New York.

Fenner

Volume

Number 5796

188

The Commercial .and Financial Chronicle

Polymeric Chemicals, Inc. .•
(letter of notification) 26,285 shares of common
stock (par 50 cents) being offered for subscription by
stockholders of record Nov. 3, 1958 on the basis of four
new shares for each 13 shares held;
rights will expire
on Nov. 24, 1958.
Price—$11 per share. Proceeds—For
equipment, bank loan and for working capital. Office—
P. O. Box 546, Canal & Ludlow Sts., Stamford, Conn.
Oct. 22

Underwriter—Dominick & Dominick, New York.

Corp. of America, Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be suDnlied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment
Graham Albert Griswold of Portland, Ore., is Pres¬
ident.
Utah Minerals Co.

April 11 (letter of notification) 900,000 shares of com¬
mon stock. Price—At par (10 cents
per share). Proceeds
—For mining expenses. Office—305 Main St., Park City,
Utah. Underwriter—Walter Sondrup & Co., Salt Lake
City, Utah, - J
!
:
•.:
.

Concord Ltd.

Price—$375

.debenture.. Proceeds

-per

build

certain facilities.

per
—

share and $1,000
develop, property and

common

Underwriter—None.

•

Wisconsin Public Service Corp. (12/3)
Nov. 12 filed 50,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To repay short-term bank loans incurred for 1958
construction. Underwriters—The First Boston
Corp., and

Merrill

Uranium

Utah Oil Co. of New

York, Inc.
May 6 (letter of notification) -300,000 shares of capital
stock. Price
At par ($l pei* share). Proceeds —For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Yv
p
•

(2129)

—

Utah Power & Light ^ Co--rj
26 filed $20,000,000 rot /first mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬

June

Lynch, Pierce, Fenner & Smith, both of New
York; Robert W„ Baird & Co., Inc., Milwaukee, Wis.; and
William Blair & Co.,. Chicago, 111.
;
.

Woolfoam

Corp.

150,000 shares of common
stock (par 10 cents).
Price—$2 per share.; Proceeds—
For general corporate purposes. Office—44 W. 18th St.,
New York, N. Y. Underwriter—C. H. Abraham &
Co.,
Inc., New York 17, N. Y.
World

Oct.

Wide

Helicopters Ltd. (11/24-25)
depositary receipts for 212,158
par ordinary
(common) stock (together

filed

American

with

like number of the shares.

£1

by amendment.

Price—-To be supplied

Proceeds—To selling stockholders.

derwriter—Blair &

Un¬

Co., Incorporated, New York. Office

—Nassau, Bahamas.

r;l

■:

w/-'

^ Wyoming Corp.

Nov. 17 filed 1,449,307 shares of common stock. Of these
shares 1,199,307 are subject to partially completed sub¬

scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
share for each 2.33

of the company and its subsidiaries
amounting to approximately $43,000,000 for the period

shares held on that date.; Price—$4
Proceeds—$300,000 will be used for payments
on contract to purchase shares of International
Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 as

1958-1960.

tive

gage

gage bonds, 5*4% series due 1087, to repay $4,000,000 of
bank borrowings, and the balance together with further

borrowings under

a bank agreement and cash generated
the business will be used to carry forward the con¬

struction

program

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co

Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.

(jointly); Salompn Brothers & Hutzler; Kidder, Peabody
Co.; Eastman Dillon, Union Securities & Co., and
Smith, Barney & Co. (jointly). Bids—Were to have been
received in Room 2033, 2 Rector Sheet, New York,
N. Y., up to noon (EDT) on Sept. 9, but were postponed

share.

per

additional capital contribution to Great Plains Mort¬

Co.

Office—319 E. "A" St., Casper, Wyo.

Under¬

writer—None.

Sept. 3. Bids will now be received on such day sub¬
sequent to Sept. 22, 1958 but not later than Nov. 25, 1958
as shall be designated by
company.
on

• Vocaline

Co.

America,

Old

Inc.,

Lyme,

Conn.

(12/2)
Nov. 10 (letter of notification) 21,500 shares of common
stock (par $1.50). Price—To be supplied by amendment.
Proceeds

To repay short term bank loan; reduce ac¬
payable; acquire inventory and the balance for
working capital. Underwriter—Paine, Webber, Jackson
& Curtis, New York, N. Y.
—

counts

Von's

Waltham Precision Instrument

Co., Inc.
Oct. 24 (letter of notification) 300,000 shares of com¬
mon stock being offered for
subscription by stockholders
on
the basis of one share for each eight shares held
as of Nov. 12, 1958 (with an oversubscription
privilege);
rights to expire on Dec. 12, 1958. Price—At par ($1 per
share). Proceeds—For working capital.
Office—Wal¬
tham, Mass. Underwriter—None.
^ Washington Water Power Co.
Nov. 12 (letter of notification) 7,300 shares of common
stock (no par) to be offered to employees under a Em¬
ployees Stock Purchase Plan. Price—Estimated at $39
share. Proceeds—To meet construction requirements.
Office — E. 1411 Mission Ave., Spokane, Wash. Under¬
per

writer—None. !

'. V;'
/
(12/8)
Nov. 17 filed 37,615 shares of commoii stock (par $5) to
be offered for subscription by common stockholders of
record Dec. 6, 1958, at the rate of one new share for each
•

it West Ohio Gas Co.

then

held.

Price—$15

share. Proceeds—
For construction program. Office—319 West Market St.,
Lima, O. Underwriter—None.
per

it Western Steel, Inc.
(letter of notification) 285,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To con¬

Nov. 5

struct

507-509

West

28th

was

combination of the two, includini
expansion program, work¬
ing capital and inventories.. Underwriters—Blyth & Co
Inc. and Merrill Lynch. Pierce. Fenner & Smith.
loans.

Proceeds—For

Chicago & North Western Ry. (11/25)
Bids will be received up to noon (CST) on Nov. 25 by
the company for the. purchase from it of $1,875,000 addi¬
tional equipment trust certificates to mature in 15 equal
annual instalments.
Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.
Aug. 25 it was reported that the company may issue and
$25,000,000 of preferred stock. Underwriters—May
be The First Boston Corp. and Glore Forgan & Co., both
of New York. Offering—Expected late in 1958 or during
the first three months of 1959.
Denmark (Kingdom of)
Sept. 2 it was reported that an issue of between $20,000000 to $30,000,000 may possibly be placed on the Ameri¬
can market this year.
Underwriter—Kuhn, Loeb & Co.,

New York.

First City National

Sept.

was

First National

Dec.

was

Bank in

common

record

Inc. (11/26)
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 sharei
ere to be publicly offered at $3 each.
Proceeds — Foi

general corporate purposes. Office—151 Adell Avenue,
Yonkers, N. Y.
Underwriter
Edwin Jefferson
89
Broadway, New York 6, N. Y. Statement effective Nov.
-

18.

Wilmington Country Club, Wilmington, Del.
$500,000 of debentures due 1991 (non in¬
terest bearing), and 800 shares of common stock (par
$25) to be offered to members of this club and of
Oct. 27 filed

Dallas, Texas

announced

additional

Wilier Color Television System,

offer to its

(par $20)
on the basis of one new share for each 10
shares held;
rights to expire on Jan. 10, 1959.Price—$40 per share.
Proceeds—To increase capital and surplus.
Office—931
Main Street, Houston 1, Texas.

<4r White Eagle Oil Co., Tulsa, Okla.
Nov. 6 (letter of notification) a maximum number of
3,450 shares of common stock (par 10 cents). Price—
$8.50 per share (estimate mean between New York Stock
Exchange bid and asked price on Nov. 14, 1958). Pro¬

•

125,000 additional shares of capital stock

Underwriter—

writer—None.

Bank plans

stockholders of record Oct. 2, 1958 the right to subscribe
for

stock dividend. Under¬

Bank

announced

None.

al shares in connection with 5%

Equitable Gas Co.
July 18 it was announced that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,000
of additional funds. Proceeds—Together with $7,000,000
from private sale of 4V2% bonds, to repay short-term
bank loans and for construction program. Underwriters
—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White.
Weld & Co., all of New York.

Oct.

ceeds—To go to stockholders entitled to receive fraction¬

(Empire of)

Aug. 20 it

stated that

was

$50,000,000 of bonds
the

issue of between $30,000,000

may

American market.

soon

be publicly offered

Proceeds—For

public works
projects, etc., Underwriter—The First Boston Corp., New
York..
'' /
" V,.;:
Kansas Gas & Electric Co.
March

31, G* W. Evans, Chairman, announced that com¬
plans to sell some bonds originally scheduled for

pany

mid-year.

The proposed sale

until late 1958

was subsequently deferred
early 1959. Proceeds—About $8,000,000

for construction program. Underwriter—To be determined

competitive bidding.' Probable
bidders:
Halsey,
Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon/ Union Securities & Co. and

Stuart & Co. Inc.;

Stone & Webster Securities Corp.

(jointly); Glore, For¬
CO., and Goldman Sachs & Co. (jointly).

gan &
::

/Kansas Power & Ljgtit Co.

Feb.
sell

announced

was

•;

plans to issue and

company

$10,000,000 of first mortgage bonds due !98ti

ceeds—For

construction

Pro¬

Underwriter—To bo
by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
program.;

determined

& Co.; Blyth & Co.. Inc.; Equitable Securities
Corp

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering
refinancing $790,000 of outstanding notes
($658,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through
equity or con¬
vertible debenture financing.5 Office—75 Pitts
St., Bos¬
ton/Mass./
*Y' " '
"
:v;'
" V;
/>
Inc., Fairfield, Calif.
•
n ;
this newly organized invest¬
company nlans to offer to bona "fide residents of
California 10,00") shares of capital stock (par $1). Price
—$10 per shar #, less an underwriting discount of 8 tyfe %.

Jan. 27 it

announced

was

ment

Proceeds—For investment.

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds—To redeem a like amount
of 4%% debentures due November, 1992.
Underwriter
—To

determined

bidders:

competitive bidding.

Probable

Halsey, Stuart & Co. Inc.; Morgan Stanley &

Bids—Had

Co.

been tentatively scheduled to be re¬
Sept. 16, but on Aug. 26 it was voted to post¬
this refunding program because of present market

ceived
pone

conditions.

sell

approve

Cheyenne, Wyo.

Japan

Commonwealth Edison Co.

St.,

plans addi¬

100,000 shares are to be sold for the account of selling
stockholders, Proceeds—For expansion. Underwriter—
Glore, Forgan & Co., New York.
Offering — Expected
sometime in November.

Master Fund,

Co.
announced that the company

preferred stock, or
bank

Office—

plant and mill and for working capital.

Steel

tional financing this year, in the form of common stock

Grocery Co., Los Angeles, Calif.

(12/2)
Nov. 5 filed 360,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—To selling stock¬
holders. Underwriter—Hemphill, Noyes & Co., Los An¬
geles, Calif., and New York City.
•

Acme

March 21 it

Smitfi,

Heublein, Inc.
Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which

and

Nov. 6 (letter of notification)

•

include: Blyth & Co.,
Inc.; Lehman Brothers ancl
Barney & Co.
/
> :
•
'

plan

stock

stockholders

offer

(par $10)

(12/2)
will

vote

shares of
to stockholders of
290,000

Dec.

2, 1958 on a one-for-eight basis; rights to
expire on Dec. 18. Price—$27 per share. Proceeds—To
increase capital and surplus.
Underwriters — Equitable
Securities
Corp., Dallas, Texas, and Merrill Lynch,
Pierce, Fenner & Smith, Fort Worth, Texas.
• First National Bank of
Jersey City (N. J.)
Nov. 19 it was announced Bank is offering to its stock¬

holders of record Nov. 19, 1958 the right to subscribe on
a

additional 17,000 shares of capital
(par $25); rights will expire on Dec. 5. Price—$55
share. Proceeds—To increase capital and surplus.

pro

rata basis for

stock
per

Underwriters—Van

Alstyne, Noel & Co., New York.

Midland Enterprises, Inc.
March

28, company announced it plans to issue on or
Dec. 31, 1958 $3,200,000 of first preferred mort¬
bonds. May be placed privately. Proceeds — To
repay bank loans and for working capital.
before

gage

Midwestern Gas Transmission Co.
March

24 it was
announced that
this subsidiary oi
Tennessee Gas Transmission Co. has applied to the Fed¬
eral Power Commission for permission to issue first

mortgage

bonds,

unsecured notes and common stock.
pipe line system to cost about $111,-

Proceeds—To build

000,000.

Underwriters

—

Stone

Webster

Securities

Corp. and White Weld & Co., both of New York.
Moore-McCormack

Lines, Inc.
was announced company plans to issue and
$24,000,000 of government insured bonds secured, by

March 24 it

sell
a

first preferred ship mortgage on the liners S. S. Brasil
S. S. Argentina. Underwriters—Kuhn, Loeb & Co.

and

and Lehman

Brothers, both of New York.
Offering
Postponed because of uncertain market conditions.
New

York

March 7 it

State

Electric

and

—

Gas Co.

announced that

approximately $7,500,000
from additional financing will be required for construc¬
tion expenditures for the balance of this' year. The man¬
was

agement intends to negotiate
group

this

a new line of credit with a
of banks and expects to sell equity securities later
or in early 1959, depending upon prevailing

year

market conditions. Underwriter—For any common stock:
The First Boston Corp., New York.

Norfolk & Western
Bids

are

Ry. (12/18)
expected to be received by the company

on Dec.
purchase from it of $5,850,000 equipment trust
certificates. Probable bidders: Halsey, Stuart & Co. Inc.;

18 for the

Salomon

Bros. & Hutzler.

Northern
June
year

Illinois Gas Co.

wras

announced

company

$10,000,000 mortgage bonds but

stated

that

immediate

will sell late this
Sept. 12 it was

financing will not be

necessary.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; First Boston

Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.
Northern

Insurance Co. of New York

Giant Food Stores, Inc.
Nov. 3 it was reported that the corfipany

Nov. 8 it

ing

capital stock (par $12.50)

common

plans an offer¬
stock to holders of Giant Food Prop¬

erties, Inc. Underwriters—May be Kidder, Peabody &
Co., New York, and Auchincloss, Parker & Redpath,
Washington, D. C.
Great Atlantic &

Pacific Tea Co.,

Inc.
secondary offering of common
voting stock is expected this year. Underwriters — May
Feb. 19 it

was

reported

announced company plans to offer to its
stockholders the right to subscribe for 290,400 shares- of
was

on the basis of one new share
each two shares held (following 100% stock dis¬
tribution). Stockholders will vote Dec. 10 on both pro¬
posals. Subscription warrants are expected to be issued
late in December or early in January.
Underwriter!—
May be The First Boston Corp., New York.

for

Continued

one

The Commercial and Financial Chronicle

(2130)

Continued from page

retire

Republic National Bank of Dallas, Tex.
85,170 additional shares of capital

cisco, Calif.

1958, one
to expire

South Coast Corp.

that the company is planning

it was reported

Oct.

J/4%

may

Insurance Co.

Southeastern Fidelity Fire

Proceeds

—

Oct. 28 it

To refund outstanding

in State

selling stockholders.
ley & Co., New York.

will

account

for

Co.

Venezuela

Tel.

the

breasted

awaits

definite

the

issue

new

secondary in¬
in
recent

and

markets

vestment

months.

True, the banking

munity
new

surrounded

has

which

fog-bank

has

successful

The

offering at

com¬

such

were

avoid
attempting any
long-range ex¬
change offer for its $12 billion
of

deciding

maturities

afford
its

via

cash

new

month,

may

good part of

even

short-term

new

Northern Natural

bentures,

disturbance

existing markets^

the

result.

least the task of adjusting to any
new

might have devel¬

base that

oped out of
bond

U. S. long-term
again thrust in¬

a new

issue

continues

behave

ously but with
on

any

bit

nerv¬

emphasis being

the side of improved prices and

shaded yields. Institutional inves¬
tors still

are

looming

Arvida

Corp.'s

SEC

for

not rushing into the
new

few

$30

market on
negotiated

sale

weeks

"We

the

gun,"

which

debt

corporate

this

one

building

but chances

are

that

of prospective offerings now

some

going

into

registration

probably

will go over the turn of the year
unless

levels
•

the
or

market

holds

current

matter

until large-scale buyers of invest¬
ment securities will be

for

counts

taking

adjusting
the

on new

their

year-end

ac¬

this

year.

got tp stop spending if

and

Mrs.

—

are

extent

which I

conviction: All of you
am

name

secu¬

Street

under

the

The Scott Co.

Purvis Adds to Staff

(Special to The Financial Chronicle)

DENVER, Colo.—Arnold Deitsch
been

has

going

added

the staff

Company,

1717

Street.'.

Stout
:

dedicated

the

(Special to The Financial Chronicle)

know

GRAND

whole

;JUNCTION,

Cecil L. Hebrew is

theory of liberty and freedom and of free enter¬

with

prise, and I believe that these things—we cannot
have these concepts

applied completely- in

try

unless

do stop

It is indeed "a very

himself has not
of its

this

money

Dwight D. Eisenhower.

now

Colo.—
affiliated

Harry W. Peters, 610 Rood

Avenue.

•

our coun¬

seriousness, but

With H. M. Byllesby Co.

spending."—

(Special to The Financial Chronicle)

CHICAGO, 111.—Edward A. See-

serious thing." The President

always appeared to be fully
we as a

ber

aware

now

affiliated

Byllesby and

with H. M.

Company, Incorpo¬

rated, 135 South La Salle Street,

people had better be.

members

the

Midwest

Stock

Exchange.

Now Palo Alto Research

Albert Malangone, Gabriel Telem
and Paul K. Hendison have be¬

Harold

Lois

Center

South
firm

conducting

With Harry W. Peters
one

Three With Walston

Chapin

DOLLINS, Colo.

Shannon

Sr., is

Purvis

come

associated

with

Walston

Co., Inc.

registered representa¬

Schilling are now affiliated with
than in Don A.
Chapin Co., 155 North tives in their office at 21 West
44th Street, New York City.
College Avenue.

commitments.

FT.
E.

keep further dilution of the dollar from taking

the

The

(Special to The Financial Chronicle)

in¬

F. E.

rities business from offices at 419

under the management of Jerome
G. Schaefer,

Two With

Riley haye

staff of

Forms Scott Co.

place.

Market Corporation has opened a
branch office in the Rand Tower

weeks

Earl

the

But

extends its improvement.

only

terested

had to face up to

"We have

New Market Corp. Office
—

PASADENA, Tex.—William H.

ing, particularly Federal deficits of the size that
we

is not being underwritten.

MINNEAPOLIS, Minn.

Oreg.—Albert

Block.

Scott,

"And I have this

stockholders.

Siemens & Associates. 584 Pittock

into

comes

and

added

been

considerab le amount of

President

prospective calendar is

McBrien

this, to my mind, is a
very serious thing because I am
convinced that the two princi¬
Pres. Eisenhower
pal spurs to inflation are, one,
the continuous wage-price
spiral, and the other is unnecessary Federal spend¬

offerings.
.The

income

our

(Special to The Financial Chronicle)

PORTLAND,

Treasury, we will have to
make temporary borrowings of

its

Corp.,

the

speak,

"rights," that about rounds
Thanksgiving
Day week. There is an offering
listed
for
the
holiday, Checker
Motors Corp.'s 133,132 shares of

Securities

Lakewood

Two With F. E. Siemens

weVe got to find
more
than
$12,000,000,000 of
new
money; and, next fall, be¬
cause
of the seasonal way in

out the calendar for

...

"Finally,

Aside from several stock offer¬

Margaret

roll-over,

something in the order of $23,000,000,000 worth of
short-term notes.

by talking about the offering prior

ings

with

than one-year length.

have, during that same time,

when

back

—

the horizon is

projected

that agency alleged sponsors were

"jumping

Ohio

H. Stockdale has become connected

14714 Detroit Avenue.

This issue invoked the ire

stock.

going to have to refund $50,-

000,000,000 of bonds of

$27.5 million of Class A common

common

market

Gas Co.'s

the
the

(Special to The Financial Chronicle)

LAKE WOOD,

"Now

route, is next week's largest pro¬
spective offering.

market

bond

the

via

Proceeds—For coft*
Underwriter—To be determined by

first mortgage bonds.

struction program.

Very Serious Thing!"

"Next year we are

to actual registration.

definitely into the future.
Meantime,

due

Wednesday

of $5,000,000

money.

issue of sinking fund de¬

million

Also

minimum

moving to in¬

Next Week's Roster

bills.

Accordingly, there should be a

debentures

the

terms

vestors at the outset.

respite since it plans

some

also to raise

syndicate is re-

price of 102.625, for
4.47%. Even

bit slow in

Perhaps the latest action of the
Treasury

indicated yield of

has been slow and laborious work.

coupon

bond.

able to move
fashion, but it

been

issues after

bid

runner-up

same

Joins Lake wood Sees.

101.4599 for
rates,
for
a
spread of only about $3 per $1,000
The

Light Co.

Tel.

wire, with the winner agreeing to
pay
the company a price of
101.76 for a 4%%
interest rate.
the

Light Co.

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook & Co. and Coffin
& Burr, Inc.
(jointly); Kidder, Peabody & Co. and White, Weld &
Co. (jointly).
- >
* ;/
•

$80 million of 32-year debentures
came
up for sale.
When the issue was put up two

fraternity still
break in the

•

for the country. As a first step in the pro¬
short-term credit is being negotiated between th«
government in cooperation with the two investmem
banking firms and a syndicate of commercial banks b

cific Telephone &

The underwriting

Aug. 18 it was reported that the company plans the sale

gram a

syndicates

July 1 the Government announced that Kuhn, Loeb &
Co. and Kidder, Peabody & Co., both of New York, have
been selected as financial advisors to develop a financiai

week when Pa¬
Telegraph Co.'s

realistically this

major

Worcester Gas

(Government of)

recognized that
faced the task of bidding

bankers

v-\

bidders:
Halsey, Stuart & Co. Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until
late in 1958 or early in 1959.

Underwriters—William
Co., Inc., both of Los

share.
Blyih &

per

and

been

had

Probable

program

Pacific
-

Price—$35

Angeles, Calif.

Proceeds—To

company.

21.

Scaats

Power

Underwriter—Granbery,

To retire bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding

(par $5) at the rate of one new share for each 15
Oct. 30, 1958; rights to expire on

Nov.

shares
(par $2) is planned, of which 125,000

stock

common

Stan¬

shares held of record

T, I. M. E. Inc. (12/2)
was reported that an offering of 260,000

Underwriter—Morgan
■•••"•> ■;/
r//

Products, Inc.
New York.

March 17 it was announced that company plans to issus
and sell $10,000,000 of first mortgage bonds. Proceeds—

Valley National Bank, Phoenix, Ariz.
31 common stockholders were given the rigut jo
for an additional 101,933 shares- of common

stock

Food

Wisconsin

Proceeds

■

~ ,

was

Marache & Co.,

Oct.

due 1988.

Mother's

competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Salomon Bros. &
Hutzler (jointly); Kuhn, Loeb & Co., Blyth & Co., Inc.,
Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Smith (jointly); White, Weld & Co.; Lehman
Brothers. Registration — Tentatively planned for Nov.
21. Bids—Expected to be received on Dec. 16.

\
Products, Inc.

reported that the company plans to issue
15,000 shares of common stock. Proceeds — To acquire

Offering/
>

of Delaware and 25-for-l stock split.

—To

Underwriter—To be determined by

Oct. 27 it

Nov. 3

public offering of stock

York.

Vita Food

will be made following reincorporation

of this company

Stanley & Co. Of¬
had been expected

$12,500,000 of first mortgage bonds

sell

and

announced that

was

Offer began on Nov. 17. and will expire on
Dealer-Manager—Harriman Riplev & Co. Inc.,

16.

New

Upjohn Co., Kalamazoo, Mich...

Co. (12/16)
reported that the company plans to issue

Oct. 20 it was

Jan.

American

the

Pierce, Fenner & Smith, all of New York.

Power & Light

Texas

Research, Fund

Expected in November.

$100,000,000 4%% debentures. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan
fering—Has been postponed. Bids
about Sept. 30, 1958.

Petroleum

Virginian Ry.

ferred share.

Su¬

State

Society. Underwriters—Expected to be Leh¬
Brothers, Smith, Barney & Co. and Merrill Lynch.

man

July 10 it was announced Missouri Public Service Com¬
mission authorized the company to issue $110,000,000 of
35-year debentures.

the. New York

The Chase Manhattan Bank will

agent for the

a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$10) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug. 1, 2008 on the basis
of $11.50 principal amount of debentures for each pre¬

Chemical

Bell Telephone Co.

Southwestern

transaction rests with

the

N. E., Atlanta, Ga.

tions.
Office — 197 Auburn Ave.,
Underwriter—None.

•

Court (expected within two months).* Proceeds—

preme

Kingdom.

this syndicate

Aug. 26 the directors approved

between $50,000,000 and $60,000,080.; Approval

run

the

Aug. 26 it v/as announced that the company in all prob¬
ability will offer additional common stock to its share¬
holders in the near future. Proceeds—To expand opera¬

United

to head

are

credit. The amount of the
financing involved is in the neighborhood of $250,000,000. The purpose is to restore government balances
which have been reduced by the repayment of excessive
short term obligations previously incurred.

Aug. 13 it was reported that an issue of common stock
will soon be offered to the public, the proceeds of which

bonds due 1960. Underwriter
blower & Weeks, New York.

Universal Oil Products Co.

$1,200,000

approximately

retire

Lynch, Pierce, Fenner & Smith.

Land & Industries, and
of first mortgage
— May be Horn-

properties from Gulf States

the

and

new

competitive bidding. Probable bidders: White, Weld &
Co. and Shields & Co. (jointly); Lehman Bros.; Merrill

long-term financing. Proceeds — To replace an
interim loan obtained in connection with the purchase
some

the fiscal

about $30,000,000 of common stock in the latter part ol
this year or in the first quarter of 1959, but this financ¬
ing may be put off until June, 1959. Proceeds—For con¬
struction program. Underwriter—May be determined by

and surplus..

ceeds—To increase capital

Canada

& Savings Association.

Louis, Mo.

announced company plans to market

March 28 it was

States,

The Chase Manhattan' Bank, The First National City
Bank of New York, and Bank of America National Trust

are

-J

Union Electric Co., St.

record Nov. 14,
new share for each 35 shares held; rights
on Dec. 1, 1958.
Price—$60 per share. Pro¬
to its stockholders of

(par $12)

United

The three institutions which

corporate purposes. Business—Trucking concern.
Un¬
derwriter—Blyth & Co., Inc., New York and San Fran¬

Nov. 14 Bank offered

stock

the

obligations and for general

equipment purchase

Thursday, November 20, 1958

...

PALO
name

and the firm is now located at 323

Alto.

(Special to The financial Chronicle)

of Palo Alto Financial Serv¬

ices,
Menlo
Park,
has
been
changed to Palo Alto Research
Town

Draper, Sears Adds

ALTO, Calif.—The firm

Country

Village,

Palo

BOSTON, Mass.—John J. Lardhas been added to the staff

ner

Con¬
Street, members of the New

Draper, Sears & Co.r

gress

York and Boston-Stock Exchanges.

Volume

Numbei

188

5796

The Commercial and Financial Chronicle

Membership Participation in Un-

(2131)

South

Its

and

Stake

Japan—

What

You

Know

About

Ma¬

With Donald C. Sloan

Bibliography

Affairs—A

ion

United

—

Princeton
Princeton,
N. *J.

University,
(paper), 30c.

;

Special

[

Dwelling

New

Authorized
by Local Building Permits, An¬
nual Summary, 1956-57 — U. 5.
Labor

Units

—paper—50c.
Story of
&

American Communist

—John

Gates—Thomas

Sons," 19

East

Nelson

47th

Street,
Yorkl7, N. Y., $3.95.

New

Occupational Outlook Quarterly—
Irving J.Chavkin and
ering-^John Wiley & Sphs^Inc.; - ^Containing articles on JHow Au'torn ation
Will -:1 Affect v Office
440 .Fourth Ayenue,
WOrkers;
Value- /j,of • Military
16, N. Y., $10.50. (accompanied
Training in Civilian Jobs; Em¬
by
a
spiral-bound - workbook
ployment Outlook for, Biologi¬
which contains additional prob-|
cal Sciences; High School Leav¬
j lem material, $3.95).
ers
in
Vanderbuegh
County,
:

Op¬

American

—

Association,
12 East
Street, New York 16, N. W.

36th

Statistics, 341 Ninth Ave¬

,quest.

Advanced: Accounting: Probljeiiis—;

Accounts

Procedure

Bankers "

New York 1, N. Y.—on re-

nue,

Checking

erating

Department of Labor, Bureau of

Trade

Japan

Council, 149 Broadwayr New
York, N. Y. (paper), on request.

Selected References, Industrial
Relations V Section,

States

Tax Evasion

Tax Avoidance—

vs.

■

Check Points, for Sound Collective

Bargaining— National
tion

Careers for Women in
Science; Recent Changes in Fed¬
eral Pay Rates and Personnel
Practices—U. S. Department of
Ind.;

Associa-

Manufacturers,

East.

48th

Street, New York 17, N.Y.,
(paper), $1.

Labor, Bureau of Labor Statis¬

Sharing:

Automobile

The

York

Un¬

Heinstein
trial

Labor, Bureau of Labor

ment of

New

anse

Coverage in the U. S. as of

Dec.

31, 1957—Health Insurance

request.

California

James G, March
A. Simon—John

—

Herbert

Plan

Balance

The

Pont:

Technology—E.
Nemours &

Story of
Pont de

(paper).

ton, Delaware
of

series

reports

—

"Statistics of Manufacturing In¬
dustries"

Pamphlet

Co., 633 Brenner Street.

Realities Fac¬

World in Turmoil:

ing U. S. Foreign Policy—40th
anniversary statement—Foreign

Policy
Association,
Incorpo¬
rated, 345 East 46th Street, New
17, N. Y.—paper—50c.
:

York
You

Adopted

Your

and

Child—

Affairs

LeShan—Public

Eda

Committee, 22 East 38th Street,
New York 16, N. Y. (paper), 25
cents.

Joins David Means
BANGOR, Maine

Southern

Howard L.

—

Board,

David G. Means, 6 State Street.
dividends

NOTICES

DIVIDEND

authorized
the

—

Tom

has

Population Bomb

—

238th

WILLIAM

Consecutive

DOUGLAS,

Chairman
November

the

fifty cents

The above dividends

are

pay¬

able December 31, 1958, to--

per

stockholders

capital stock of this Com¬

has been declared payable

cember

.January 15, 1959, to shareholders

of record De¬

mailed

pany

Checks

will

from the Company's
office in Los Angeles, Decem¬

of record Dec. 12, 1958.

1958. '

13,

27 cents per share.

Quarterly Dividend

of busi¬

November 20, 1958.

shore;

Dividend No. 47

per

A dividend of

ness

cents per

4.32% SERIES

year-end dividend

at the close

record

CUMULATIVE PREFERRED STOCK,

share on the
capital stock of the Corpo¬
ration,
payable
December
12, 1958, to stockholders of
$.50

PREFERRED STOCK

ORIGINAL

COMPANY

Directors

Board

payment

Dividend No. 198

CORPORATION
The

the

following quarterly divi¬

dends:

NOTICES

UNITED FRUIT

declared

The Board of Directors has

Avenue, New York 22, N. Y.—
$12.50.
DIVIDEND

Company

Davis has become connected with

Park

460

California

Edison

National Industrial

—

NOTICES

DIVIDEND

air pollution —
Public
Affairs
Committee, 22
East 38th Street, New Yprk 16,
N. Y. (paper), 25c.
on

(Special to The financial Chronicle)

Transportation' Equipment:
First

ard is now with Donald C. Sldan

fice, Washington, D. C.
What's in the Air?—Hazel Holly-

Company, Wilming¬

EDWARD D. TOLAND, Jr.

Prentice-Hall, Inc., Englewood
Cliffs, N. J. (cloth), $2.95.

17, N. Y.—~

Check "and
Slick —

Peace:

Permanent

Council, Health Insurance Asso-.
ciation of America, 750 Third
paper—on

Martin
Indus¬

Wiley & Sons, Inc., 440 Fourth
Avenue. New York 16, N. Y., $0.

Avenue, New York

201

Relations,

and

Extent of Voluntary Health Insur-.

and

Institute

—

Organizations

341
Ninth Avenue,
York 1, N. Y.^on request.

Statistics,

,'r

David

and

Practitioners' Li¬

Tax

—

Hall, University of California,
Berkeley 4, Calif., $2.

in Seven Areas -rr-U. S. Depart-

.•

Industry

Crook

Hamilton

Minimum Wage

Gutkin

(Special to The Financial Chronicle)

SALEM, Oreg.—Paul W. Shep-

U. S. Government Printing Of¬

PUNTA ALEGRE SUGAR

Worker

Older

1;,N. Y. (cloth), $4.50.
of the

This

(cloth), $3.75.

tionships— Wayne Hodges -—
Harper & Brothers, New York,
Effects

Beck

brary/Ronald Press Company,
,15 East 26th Street, New York
X 10, N.
Y„ $10.00.

(Municipal Bonds)—E. H. Davis
South
La Salle Street, Chicago 3, 111.

Community: Case
Industry-City Rela¬

Studies

Sydney

Pamphlet—Department

—

of State Publication No; 6716—

—John Niiveen & Co., 135

and

Company
.

sis

(paper).

5, N. Y.

People—An informal analy¬
of
tax-free
Public Bonds

the

Irwin M. Stelzer, and
Rosalind Roth—Boni, Watkins,
■-1. Jason & Co., Inc., 37 Wall St.,
New York

People, by the People/ for

Of the

.Control—Royal E. Mont-

; gomery,

■

Conference

per year.

ion's Effort to Extend its Fron¬
tier of

341 Ninth Avenue, New
1, N. Y., 30c per copy; $1

tics,

Collective Bargaining Over Profit

laria?

ber 31.

Secretary and Treasurer
Boston. Mass., November 17, 1958

p. c.

Hugh Moore

hale,

Treasurer

Fund, 51 East 42nd Street, New

French American Commerce—Re¬

view—French Chamber of Com¬

of the United States, Inc.,

merce

/ 250 West 57th

Tuck

English Translation—Press
and
Information
Division,
French

nue,

lege, Hanover, N.

and

West

and

Division y of

French Embassy, 972 Fifth

AveY.—on

New

„

Survey—Press

Information

nue,

Af-

Equatorial

rica—Economic

York

21,

—

Millspaugh and GurneyBreckenfeld—Fight Blight, Inc.,
32 South

Differentials.

Tax

Income

Symposium — Tax Institute..In-i
corporated, 457 Nassau Street,
Princeton, N. J., $6.

■>

Machine

Accounting

and

Data

auto¬

Processing—Magazine

matic office methods and

declared at the
following rates per share:
5% Preferred
25*
5% Convertible Preferred
25*
5.40% Convertible Preferred
27*
5V2% Convertible Preferred
271/2
Common
40*

Stock
for

and

information related

"tomation
'•

the

office

tablishment
and
Practice
of
Corporate Dividend Policy; Pro¬
duction
Planning,
Scheduling,
and

ing

Load; Control of Engineer¬
and
Development
Costs;

Fringe Benefits;etc.—Machinery
and
Allied Products Institute,
1200

Eighteenth Street, N. W.,
6, D. C. (paper),

Washington

$1.00.
Manpower Problems in Economic
'Development;

Selected

Bib¬

liography — Industrial rela¬
tions
Section, Princeton Uni¬
versity, Princeton, N. J.—paper
—S2.

VICE-PRES. ftTREAS.

October 20, 1958

clared the

Dividend Notice

for the quarter ending December

The Board of Directors

31, 1958:
Class of

has

Dividend

Stock

Per Share

4.30% Cumulative Preferred

1.075

5.05%

1.2825

Publishers,38

1958

Wilmington, Del,, November 17,

Cumulative Preferred

$1.40 Dividend Preference
Common

Series

able

AMERICAN

CYAN AMID

the

COMPANY

1959;

Common

for

1958,
close

to
of

$1.12 V2

Stock—$4.50

Series,

the Pre¬

both

pay¬

1959, to stockholders
close of business on

the

January

13,

January 24,

dividend

the

Preferred

87'/2*

Stock—$3.50

record

th^

and

ferred

.$1.02

also

Stock

1958,

$1.50
as

All dividends
before

.35

thO Comnidn
Corpdr^tidd,
payable January 2, 1959,
to stockholders of record at
the

share on
Stock of the

December

ber 28, 1958. '

December

22,

1958

of business

B. M. Byrd

to
November 19,

Secretary

1958

UNITED

F. Milton Ludlow
.

December 10,1958.

on or

stockholders of record Novem¬

the year-end

payable

.45

.»..«•«•».

are

declared

date

per

of Directors has declared this

day regular quarterly dividends of
a

this

dividend of thirty-seven
and one-half cents (37J^)

Pieterskerkhof,
Leiden, Holland (cloth), f 19.

E.I.DU P0NTDE NEMOURS&COMPANY

DIVIDEND NOTICE:

louisiana

hreveforti

following dividends

1.045

Secretary

serving

CAS
the

stockholders of record at
on November 24,

business

1958.

P. S. du PONT,

3rd, Secretary

)%>\7BLIC SERVICE
CROSSROADS

Financial Review, October

1958,
containing
articles
oh
Measuring
the Utilization
of
Corporate
Capital;
Company
Cost Reduction Programs; Esi

The Board of Directors has de¬

J. Ley,

Avenue, New York 16, N.Y.

tute

CORPORATION

QUARTERLY DIVIDENDS

Machine & Allied Products Insti"

UNITED GAS

4.18% Cumulative Preferred

$7.50

»■

4.08% Cumulative Preferred

to ,au-'

—

'WMS

Company
•I

man¬

ye&F ($6.50 per year if ofdeif
entered before Dec. 31, 1958)—
Gille Associates, Inc., 270 Mad-

.ison

and Gas

F. Stenfert Kroese, N. V.,

per
'

Public Service Electric

on the Leading
Exchanges—Foun¬
Economic Research

agement, to be issued bi-month¬
ly with information regarding
punched card and punched tape:
systems, ~ business
computers/

IHF EAST

PREFEItKED DIVIDEND
The Board of Directors

Cyanamld

December 2,

■

of Amer¬

today
declared a quarterly dividend of
eighty-seven and one-naif cents
(87 Vzt) per share on the outstand¬
ing
shares
of the Company s
3%1 % Cumulative Preferred Stock*
Series D, payable January 2,1959,
to the holders of such stock of
record at the close of business
ican

Company

1958.

In ternational StitT

dividend of ONE

ican

Company today
quarterly dividend of

Cyanamld

declared

cents (40c> per share on
outstanding
share* of the.
Common Stock of the Company,

forty
the

>ayable December 23, 1958, to the
of such stock of record
at the close of business Decem¬
ber 2, 1958.

e
.iolders

R. S. KYLE,

New York,

the

has

been

The

DOLLAR

AND SEVENTY-FIVE
of Amer¬

The UNITED

company
DIVIDEND NO. 178

COMMON DIVIDEND
The Board of Directors

:'V/>

The Board

...

Amsterdam

17, 1958

•

cember 1, have been

Manage¬

Aspects

of the University of
—H.
-

Society

•

■

Quarterly dividends payable Decem¬
ber 15 to shareholders of record De¬

Trading

dation

—

Avenue, New
(paper), $1.50.

Quantitative

Stock

.74 Fifth
11, N. Y.

York
Some

Street, Rm. 502, Balti¬

2, Md.,. $3.50.

Schleh

Advancement' of

ment,

Martin

Edward

for

Human Side of Urban Renewal—

Byron Gordon—-Tax Practitioners'. Library — Bonald * Press
Company, 15 East 26th Street,
New York 10, N. Y., $10.00.
'

Results Approach to Organization

request.

H^—paper—$2.

—James C.

New York 21, N, Y. (paper).

French

Col¬

Capital /Expenditures
Wriggins and George

Repairs vs.

Embassy, 972 Fifth Ave-

Dartmouth

■

UTILITIES COMPANY

—

ministration,

and

CALIFORNIA-PACIFIC

7th Revision —Amos
School of Business Ad¬

; istration

French Constitution—French Text
•

November

Reading List oil Business Admin-

Street, New York

19, N. Y. (pape*).

(paper).

York 17, N. Y.

CENTS

declared

capital stock of this Com¬

payable

pany,

December

19,

1958, to stockholders of record
the close of business on De¬

cember

1*758. The stock

trans¬
will

fer books of the Company
not be

Secretary

closed.

HERVEY J. OSBORN
Exec. Vice Pres. & Sec'y.

Novehiher 18, 1958.
jiyiii!,UiiAMi'

Board

of Directors has

share, payable December

Corporation

declared dividends totaling 25

cent9 per

15, 1958 to stockholders of record November

28, 1958.

designated as a dividend
and 15 cents per share as a dividend
paid from net realized gains on investments.
In June 1958 the Corporation paid a dividend of 10 cents per share
from net investment income. Thus, total 1958 dividends will be 35 cents
Of the 25 cents per

share, 10 cents per share is

paid from net investment income

per

share, the same as total 1957

Of the total
income
In
per

and

dividends.

1958 dividends 20 cents per share is
cents

1957, 25 cents

per

investments.

share was from net investment income

and 10 cents

share from net realized

November 13, 1958.-

from net investment

share from net realized gains on

per

gains

investments.

Wm. M. Htckey, President

The Commercial and Financial Chronicle

(2132)

...

Thursday, November 20, 1958

land, Medford, Eugene and Salem*

BUSINESS BUZZ

These

tickers

key
550

stocks

will

automatically?

these

Oregon cities to the f
minute by minute changes in the t
traded

Pacific

the

Coast Stock Exchange.
This invasion of the

SNEEZY

will

closely
by
another expansive move of major
importance wihen Pacific's net¬
work will

WASHINGTON, TX C — The
and
natural gas industry

oil

disappointed

greatly

been

has

received
from the Eisenhower Adminis¬
tration.
These industries actu¬
in the treatment it has

slowdown

the

With

the Rocky Moun¬

cross

tains and install its first ticker

Filtered Cigarettes

ex¬

ploratory drilling in Texas and
Louisiana, it is doubtful whether
new
reserves
discovered this

Northwest

followed

the

in;

City of Denver giving to the*
city a direct link with

mile high

inc'

the securities market that is

ing

the

dynamic

serv¬

growing

and

year

will more than offset the
drain made from the existing

West.

legal sled¬
ding
since
Gen.
Eisenhower
began occupying the White
House than during the Truman

fields.

Pacific's tickers have been ordered

Administration.

industry at this time is why the

ally have had harder

number

The

the

against

cases

anti - trust
oil industry

has never been as
large as at present. Suits are
pending all over the country
against oil companies.
;. ?
The highly competitive nat¬
ural
gas
industry
has been
greatly disappointed over ac¬
tions
of
the
Administration,
Their first big blow came when

probably

vetoed
the
natural
gas
bill,
Which
would have freed the producers

President Eisenhower

natural

Commission.

Power

that, since the veto,
has

seems

the attitude of the industry

Administration
bill passed, and the
said a "proper"
bill should be passed, let the
Administration
do
something
about it. Certainly the industry
made no concerted effort to get
.such a bill passed at the last
the

been:

wants

gas

has

President

session.

House

the

where it was ve¬

ing that unless President Eisen¬
killed the bill by his

veto, users of gas all over the
country would get their rates
increased. They failed to say if
the President vetoed the bill,

pending

including

However, the
Commission

pipeline com¬
$220,873,600.

Federal Power

really

1,500

with

under,

production costs,

involving

panies

rate

kinds

various

54 by

snowed

pending

in¬

dependent producer applications
for

rates.

increased

producers

pendent
rate

the

inde¬

The

sell

interstate pipelines.

Supreme
the

that

FPC

the

after

Court

handed

famous

now

Phillips

in which the

case

the

tribunal held

had

jurisdiction

the question of rates

to pass on

„

The

Commission

still anxious that Congress pass
a

bill that would take

away

this

function from the Commission.

Meantime, labor leaders and
their spokesmen are ready to
pounce on any natural gas bill
that might be considered.
In
the

last" session

the

AFL-CIO

that

hastily

companies

result

that

some

their

contact

families
their

repre¬

sentatives and senators and ask
them to vote against such a bill.

Congress and

The

con¬

executive branch of the

trolled

government.
A

Gulf

Oil

Company, with

from

last

•

downtown'

May handed

gress

panies

against

effort

Alexandria,
*

oil

headquartered

dictment

east

the

bill

passes,

"your

wallet

thinner—much thinner

time you pay your gas
The editorial said "those

—each

bill."

Texas oil billionaires and their

allies would be the beneficiaries
of such a

bill.

the

almost

wing

the

that

86th

is going to make
to

repeal

and

most

retain

the

new

oil and gas

network

pand

Today

and

believed

members of Congress from

this

will

work

line

hoped

the

anti-trust

fore

companies

were

indicted)

Qualified

industry

were

illegally fixing,
and
stabilizing

have

opinion that the

oil

and. gaso¬

people

amount

the

for

by
the

growing

continue

crossing
first

its

the

time

net¬

rapid
Oregon

stock

the

days

for

six months. If the expected

takes

place, the

stock,

according

his

Option

the

market

the

Option
Ask

terms

sells it

through his broker.
the expected

during the

contract, the cost of the

limited to the. cost of

operation is
the

the

other hand,

his

calls for

man

contract and

rise does not materialize

life

Call Option on
thirty, sixty, ninety
a

rise

would

purchase of the

buys

a man

security and
large an

capital

•needed to make

stock,

risk

contract.
Booklet

for

Use

How

Options

Rler, Schmidt* Co.

with

PUT

CALL

MOKERS I OEALEBS

121 Broadway, N.

ASSN. INC.

8A 7-6100

Y^5

the

installation of its tickers in Port-

L11*s

prepared

Report

Stodebaker-Packard

s*<

;

to*1
4.

Botany NKKs

Carl Marks&_CqJnc

Copiet

request

FOREIGN SECURITIES SPECIALISTS
20 BROAD STREET

TEL; HANOVER 2-0050 "

•

NEW YORK 5, N. Y.

TELETYPE NY 1-971

Investment Securities

II Post Offico Square, Boston

expressed
the
will center

case

primarily around charges that
the oil industry followed "price

rise in
to

We have

indi¬

with

maintaining
prices of crude
line.

(no

willing

the

comparing and evaluating ~

headed rby Senator
O'Mahoney, Democrat of Wyo¬
ming.
•
'
The

Expecting

MEMBERS

fast

di¬

called to testify beSenate Judiciary Sub-

contract.

uses

April when

outstanding.

the more

Call

familiar

ever-increasing rate.

ticker service the growth has

been

and

ex¬

Exchange began operating its

own

Con¬

continues Jo

Each month since last
the

strong

Exchange Ticker
Expanding

Pacific Coast Stock Exchangers

spread

some

FOR PROFIT
This operation is one of

not

Service
ticker

the

oil

Coast

the

CALL OPTIONS

of
the
likely
depletion

the

reduce

OPTIONS

the

certain

A SERIES

ON THE USE OF

Democrats from

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.f

members

some

11N

Nov. 4

many
from the

was

charged

will get

The in¬
issued just before

was

chief

viduals

Democrats

tive search for

branch

depletion allowance

in¬

com-

executive

during the first 10

1958.

conserva¬

Rocky Mountains.

One editorial, captioned "Watch

that

natural gas and other minerals.

Washington;

down

liberal

hour minutes

non-rush

dictment

the

(

Court

Va., 15

the

allowance, which is necessary in
the constant and highly specula¬

of the press corps.

grand jury in the Federal

District

the

.Department

the

months of

Southern members would

oil

government, and

W.* K. Whiteford, to speak
at
the
asserted
contradi-

the

all

vote

oil companies,.
particularly from the liberal
wing of Congress, some people j

had the courage, through Presi¬
out

election

new

Congress,

sentiment against

headquarters at Pittsburgh, has
dent

share volume

great majority of them are
conservative on most things in

Federal Gov¬

pensions.

ly highs in both dollar volume and

thou¬

there is substantial unfavorable

Display of Courage
The

also

Many

by Pacific's record

breaking all-time series of month¬

the South are conservatives, but

companies may or
may not win in Tulsa. However,
a
jury
in
Oklahoma
should
know more about the problems
of the oil industry than a jury
from the Washington area. Un¬
fortunately for the oil industry,

controlled

Republican

North, East and West. Of course,
not

Fight Against Depletion Law

dustry has unfortunately been
caught in the political cross-fire

Your Wallet,"

declared

trouble

The

reserves.

It also appears to spokesmen
the industry that
the in¬

Democratic

are

ernment

for

this

liberal

the

been "weakened" by the

livelihood.

sands

contradict each other.

with

San Fran¬
into Pacific

and

Evidence

1957.

tive Democrats in Congress have

the Federal Government for

their

suits

the

markets

members.

getting the case
moved away from the Wash¬
ington area certainly did not
hurt the companies. Most people
in the Washington area depend

were

House

of
to keep

able

controls

some

that may

case

Texas,

might

Texas,

the

won

The initial victory for the oil

Congressional
Certainly, it ap¬

committees.
pears

cases

and

Sam Rayburn, also

companies
metropolitan Washington.

than

committee

and

companies

long drawn out. The com¬
panies moved and were granted
the right to have the case trans¬
ferred from Alexandria to Tulsa,

from

pressure

readers

and

product

marketing

same

numerous

vision

write

oil

first round in the

territory, while one case charges
a
company with a reduction to
all dealers in the same city.

News, official publication of the
union, intermittently reminded

detriment

the

Justice.

powerless.

refined

counts have been given favored

pipelines.

was

and

Johnson

Speaker

prices

general

tions .,in<

Prior to the decision,

ate Majority Leader Lyndon B.

crude

of independent producers to the

the FPC had maintained it

setting

prices.

The whole

question snowballed

down

oil

limit

the

both

offices of most of the

Angeles

demonstrated

Okla., which is nearer the home

dealers

fluid

cisco Stock Exchanges

states that Sen¬

the oil and gas

leaders" in each marketing area,

by discounts by dealers. A num¬
of cases charge that dis¬

others

and

Los

fluid and broader market has been

ber

brought

for

Add another filter to filter the filter!"

got it!

Right or wrong, the industry

Today the industry has many

meet increased

service

Coast Stock Exchange in January

The

feels

'I've

their imports under a voluntary

rates would go up.

Hate Increases Pending

increases

im¬

Government has

importers

upon

largest regional

created by the consolidation of

the

Another suit alleged the sup¬

hower

applications

broader
as

pliers conspired to end a price
war, while several others charge
them with fomenting price wars

toed, mayors and city officials
were issuing statements, warn¬

gas

called

mem¬

is attributed to a greatly
improved product and the vastly

with

time the

service

restricting
imports to the detriment of do¬
mestic producers, while at the
same

total

This demand for Pacific's ticker

stance, he says, one suit charges

importers

of
operation

now

tickers

new

securities exchange ticker
network in existence.

possible to trace any particular
pattern to the suits.
For in¬
oil

ber films. It is the

asso¬

that it

insists

ciation,

been

ordered in the offices of its

National Petro¬

of the

Counsel

began

making

tickers

Associate

O'Hara,

have

installed

divi¬
sion's lawyers were concerned
with investigations or to the
suits already on file in connec¬
tion with the petroleum industry.
Donald

and

operating
ticker service last April

own

there

that

as saying that at
time 25% of the anti-trust

bill

toward

headed

and

White

its

Chief of the
department's anti-trust division,
in an address at Cincinnati was
quoted

(Chinatown)

Pacific

Since

ago

year

Francisco

Corona Del Mar.

plan.

gas

being considered

gress,

than

by Con¬

natural

the

When
was

"■

San

R. Hansen,

Victor

Bakers-

AngeleS, Palm Springs, River¬
side,
Sacramento, * Santa
Ana,
Sherman Oaks,, Stockton, 'tUkiah,

against the oil companies.

little

include

installed

where

Los

Department of Justice is de¬
voting so much of its attention
to
investigating and bringing
suits

cities

recent

field, Beverly Hills, Long Beach,

puzzlers to the oil

One of the

leum Association, a trade

and

Companies

Suits Against Oil

unwar¬

regulations by the Fed¬

ranted
eral

from

gas

Other

aqi

HUbbard 2-1990

9, Mass*

Teletype

Telephone
,

BS 00

Volume

Frank

188

Number

5796

The Commercial and Financial Chronicle

Orlando, Goodbody A Co.} Arnold J. Wechsler, Ogden, Wechsler A Co.; Jack
Cirenza, Gregory
A Sons; Ed Zinna, Smith, Barney A
Co.; Ray Forbes, Shear son, Hammill A Co.

Allan Lopato,
Vincent

Allen A Company; George Dedrick, Gregory A Sons;
Gowan, Goldman, Sachs A Co.; Sol Raschkind,
Goldman, Sachs A Co.

Stan Shaw,

PICTORIAL

John

McLaughlin, McLaughlin, Kaufman A Co.; John S. Barker, Lee Higginson Corporation;
Barney Nieman, Carl Marks A Co. Inc.; Wilbur R. Wittich, Grimm A Co.

Josephthal A Co.; Irving Greene, Greene and Company;
Bob Topol, Greene and
Company

Dave Saltzman,

Co.;

Torpie A Saltzman; Lester Gannon, Seymour Blauner
Wirth, Mabort A Co.; Walter Johnson,
G. A. Saxton A Co., Inc.

Homer

1 !

%t
li

i
i

■

Harry Peiser, Ira Haupt A Co.; Bill McGovern, Blyth A'Co., Inc.; Irv Hood, Lee Higginson
Corporation; Jim Musson, Phelps, Fenn A Co.

Hans

Ben,

Bernard

New

York

Aronson

Hanseatic Corporation; A. A. Geller, Allen A Company; Gerald Aronson,
Co.; Aaron Netburn, New York Hanseatic Corporation; Maurice Hart,
New York Hanseatic Corporation

Ralph Trapani, Wm V. Frankel A Co., Incorporated; John Stein, Wm V. Franhel A Co. Incorporated;
Goodbody A Co.; Allan Kadell, Allan Kadell A Co.; Frank MacKain, Ingalls A Snyder

Richard V. Miller,

Sidney Jacobs, Sidney Jacobs Co.; Eugene Stark; Bruns, Nordeman A Co.; Frank R. Verian, Merrill
Lynch, Pierce, Farmer A Smith; Sidney A. Siegel, Siegel A Co.; Jay Duga, Merrill Lynch,
Pierce, Fanner A Smith; Paul Jacoby, Ariel A Co.

The Commercial and Financial Chronicle... Thursday, November

PICTORIAL

20,1958
X

■

>.
-

illl

mm
mm

f||I
'WMmk

Ransom

Berneburg, Wood, Gundy A Co., Inc.; Harold Burke, Auchincloss, Parker A Rpdpath; Robert
Wood, Gundy A Co., Inc.; Joe Bond, Candee A Co.; Jim Shea, Wood, Gundy A Co., inc.

Brearley,

Howard

Kling, Lawrence M. Marks A Co., Inc.; Ernie Lienhard,
Truster, Singer A Co.; Sam De Socio, L. H. Ingraham A Co.

Joe

■

John ./«.

A Co.; Milt Rohdin, George, O'Neill A Co.
Inc.; Mike Growney, Gregory

Sons; Mai Weiss, A. W. Benkert A .Co* Inc.

McGivney, Hornblower A Week*; Frank Welch, R. S. Dickson A Co* Inc.; Pete
Weld A Co.; Ed J. McCormack, White, Weld A Co. -

Nat Krumholz, Siegel A Co.; Sal Rappa, F. S. Moseley A Co.

Flanagan, John J. (TKane, Jr. A Co.; Jack Manson, Hardy A Co.; Robert Kullman,
&Kane, Jr. A Co.; Stanley Dawson-Smith, Cruttcnden, Podesta A Co.

Ifoy Meyer,

Jim

MoUoy, Whits,

Reg Knapp, G. C. Haas A Co.; Tom' Curry, Stone A Webstar
Securities Corporation; Herb Gesell, Kugel, Stone A Co* Inc.

L«on Dorfman, Goldman, Sachs A Co.; Leo Brown, Asud A Co.; Barney Conlon, P. F. Fox A Co., Inc.;
Carl Swenson, G. H. Walker A Co.; Michael Voccoli, Savard A Hart

Charles Kaiser, Grady, Berwsld A Co* Inc.; William D.
O'Connor, Shelby Cvttom Deads A Co.; William
M. Doherty, Fahnestock A Co.; Alfred F. Tisch,
Fitxgereld A Company;
Arnold Wechsler, Ogden, Wechsler A Co.
■

^SS-T HornblowerA Weeks; Charles Offerman, Troster,Stnger A Co.; Charles Lye,
Chave, h£m!2ZI A wLlI^SZtSyJKh'^i9re*'/fPner^ S.mit*i WaHam
Riter A Co.; John

Harold

George Nelson, Csorge Nelson Company; Arthur Burian, Daniel F. Rica A

Shore, Harold C. Shore A Co.; James Siepser, Shaskan
Co.; Robert De Fine, Hirsch A Co.; Burt Loewer,
Neuberger A Barman

Nahum Birnbaum, Birnbaum A Co.; Gene Stark, Brans, Nordemon A

Co.; Irving J. Silverherz, Hay, Fates A Co.; Sol Bloom,

Company; David H

Hill, Thompson A Co., Inc.; George A. Searight, Searight, Ahalt A O'Connor, Inc.;
David R. Mitchell, HiU, Thompson A Co., Inc.

Sherger, Francis /. du Pont A Co.

United Continental Corp.

Magid,

Ben Shankman, Carl Marks A Co., Inc.; Charlie Curti, Hayden, Stone
A Co.; George Henry, Carl Marks A Co* Inc.; John M. Mayer,
Merrill Lynch, Pierce, Fanner A Smith

lite.

■m
■B

m
'

'■'0

Frank Boyce,
Farrell

Carl M. Loeb, Rhoades A Co.; BUI Carey, W. L. Canady A Co. Inc.; Jack Farrell,
Company; Hank Serlen, Josephthal A Co.; Harry Zeeman, Jr., Carl
Marks A Co. Inc.; Ed Whiting, Carl M. Loeb, Rhoades A Co.

Securities

George Soaek. Geo. Seask Co.; John J. Cirenza,
A Co. Incorporated;

Gregory A Sons; Ralph Trapani, William V. Frankel
Dick Miller, Goodbody A Co.

Samuel

Colwell, W. E. Hutton Co.;-"Duke" Hunter, Wellington Hunter Associates, Jersey City,
N. J.; Dick Shipman, H. Kook A Co., Inc.; John De Maye, Sutro Bros. A Co.;
Joe Conlon, Grace Canadian Securities

Angle Martinelli, Josephthal A Co.; Abe Strauss, Stratus, Ginberg A Co* Inc.; Joe Smyth, Salomon
Bros« A Hxttsler; Libby Palermo, Grams and Company; Jim Maynes, Josephthal A Co.

The Commercial and Financial Chronicle

PICTORIAL

Thursday, November 20,1958

...

November 10, 1958
••••:

SMf
I

;

•

■

WksfrMWA,.

I'f
'

#'sw

Tom

Greenberg, C. £. Unterberg Towbin Co.; Will Krisam, Jo/m C. Legg A Company; George Frings,
Sterling, Grace A Co.; Elbridge Smith, Stryker A Brown

Gambol

Dunn,

Dunn A Rollins; Livey E. Copple, Smith, Barney A Co.; Sam
A Co., Inc.; Norris Rosenbaum,
Englander A Co., Inc.

Englander, Englander

t/&//' VyMy,
'

■

WmM.

George Frings, Sterling, Grace A Co.; Irving Ittleman, Strauss,
Ginberg A Co., Inc.; John C. Reilly, G. H. Walker A Co.

John O'Mara,

Edward

A-

Jerry Aal, Bache & Co.; Jim Brewer, John C. Legg A Company; Joe
Titolo, Harris, Upham A Co.; Cy Murphy, John C. Legg A Company

Goodbody A Co.; James Cleaver, Good body A Co.; Joe Billings, Cowen A Co.;
David Wittman, Schrijver A Co.

Horn, Kuhn, Loeb
Loeb

A
A

Co.; Martin King, Sutro Bros. A Co.; Lawrence
Co.; Charles Politis, Kuhn, Loeb A Co.

Helfgott, Kuhn,

Jack

Sol

Arthur Weigner, Lehman Brothers; Leon Yaeger, Stern, Lauer A
Co.;

Burt

Loewer,

Neuberger

Berman

Gertler, Barr Brothers A Co.; Mike Farrell, John C. Legg A Company; Bob Gavlin, A. C. Altyn
A Co.; Tom Davis, A. C. Allyn A Co.; Harry Casper, Sidney Jacobs A Co.
<.

Bloom, United Continental Corporation; Ed Ruskin, Singer, Beane A Mackie, Inc.; Sol Bass, Bear,
Stearns A Co.; Joe Lann, Joseph J. Lann Securities Inc.; M. K. S.
Altman, H. Hentz A Co.

Full text of Commercial and Financial Chronicle : November 20, 1958, Vol. 188, No. 5796

FRASER