Full text of Commercial and Financial Chronicle : November 26, 1959, Vol. 190, No. 5902, Section 1

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The COMMERCIAL and FINANCIAL

ESTABLISHED

1839

Reg. U. S. Pat. Office

Volume 190

Number 5902

New York

7, N. Y., Thursday, November 26, 1959

Budget has let it be known that hope
a balanced
budget for the fiscal
ending next June 30. For this disappointment the
strike is held responsible. Loss of revenue
by rea¬

has been abandoned for

steel

activity and profits during
fiscal 1960 resulting from the
prolonged stoppage in the
steel
industry is said to be potentially large enough to
make the difference between
around
is

half billion dollars

balance and

more.

certainly most desirable, the

stantial

deficits

have

been

all

too

By Dr. Roy L. Reierson*, Vice-President and Chief

Banker proposes completing the 1933-34

budget

gold standard and using gold

very sub¬
in postwar

since

common

its for full

States

and since the fiscal year ended with June of this
year.showed an unusually large one. But some of the
years

facts

that the Director of

this

disturbing than

behind

reserves

this

would

neither

Budget now reveals are
failure of receipts to cover outlays

the dollar emanating from bal¬

pect.

diagnoses and prescribes solutions involving business, labor
and bipartisan Congressional action.

will

late, next year's (fiscal 1961) budgeted expenditures are
destined to be at a peace time high. So much has been
said by so many people about balanced
budgets in recent
years that there is danger that the unthinking will grow

discussions—The
national

United

payments.

the

assume,

must have if

really sound fiscal position is a budget pared of
every penny of needless expense and covered by reve¬
nues
which are large enough to provide a substantial
surplus to reduce the staggering debt under which we
now must live or do
live. The real cause for worry is
not where funds are coming from to cover
extravagant
expenditures, but how and when the total of government
are

to be pared to the bone

(Continued

NSTA

on page

dollar has

scribed

in¬

Some

this

they
Roy L.

hold

point
will

that

the

our

entire

national .accounts

the

banks

trends

recent

would

indeed
as

well

economic

and

maintain

our

inter¬

confidence

dollar.
The Gold Reserve

diametrically opposite
that the strain on our

should

emphasized at the outset that the

weakness

recurrent

the

dollar

foreign

ex¬

change has not shaken the dollar's position as a
leading currency in the world economy.. As foreign
currencies have gained in strength in recent years,

TODAY:

Section/Two of this issue is devoted to the proceed¬
of

the

National

(Continued

the exalted status enjoyed

Actually, both these extreme positions have no

on page

27)

State,

Security Traders Association.

Housing,
UNDERWRITERS

Municipal

STATE and MUNICIPAL

and

Lester, Ryons
623 So. Hope

DISTRIBUTORS

I NVESTM ENT

and

Notes

San

Inquiries Invited

OF NEW YORK

Company

Diego, Santa Ana, Santa Monica
on

Southern

Bond

YORK 5, N.Y.

Chase Manhattan

California Securities

•

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

New

York

bank

Correspondent—Pershing & Co.

HAnover 2-6000

TELETYPE NY I-2W2

CABLE: COBURNMAM

Department
TIIE

YORK ANO AMERICAN STOCK EXCHANGES

15 BROAD STREET, NEW

New York 15

Exchange

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

THE FIRST NATIONAL CITY BANK

MEMBERS NEW

Agency

Members Pacific Coast Exchange

COMPANY

Burnham

Housing
Bonds and

Associate Member American Stock

NEW YORK

DEPARTMENT

Co.

ip-J

Members New York Stock Exchange

BONDS

SECURITIES

30 Broad Street

Street, Los Angeles 17,
California

CHEMICAL BANK

BOND

central

Municipal

IlAnover 2-3700

TRUST

and Public

Securities
TELEPHONE:

predicted, gold

disturbing implications for the dollar

U. S. Government,

State and

foreign

ment—in order to reduce the deficit in

correct

ings of the recently-concluded Convention

Public

that, for the

leadership in world
affairs over the longer run.
It is becoming in¬
creasingly clear, therefore, that forthright and
energetic action is now required on several fronts
—foreign trade and investment policies, wages and
prices, the budget, credit policy, and debt manage¬

months.

ISSUE

as can

is in pros¬

none

decade, but the size of the deficit
sharply during the past two years,

continuation

for

alarm;

dollar

increased

have

view, namely,
payments is a passing problem which
itself soon, perhaps with a matter of

availably

and

assurance

for most of the

and

viewing

are

far ahead

nearing a crisis and that de¬
valuation is imminent.
Others

i\eiersun

balance

observers

be said with

can

remain

has

declining, and
the
repeatedly been de¬
"weak" in foreign

development with

gold

currently in effect,
no likelihood that the dollar
price
gold will be altered.

pay¬

exchange markets.

23)

CONVENTION

serve

outlays

the

the corollary is that gold

be ignored any longer.
Contrary to popular
impression, our adverse balance of payments is not
a recent development.
Not only has it been with

our

world, this country faces
balance

hold

since

leading

problem; imports are on
rise, American goods are
encountering ever stiffer com¬
petition abroad, our gold re¬

are

time

the

expenditures with receipts—and would not be
expenditures actually made currently and cur¬
rently recorded were the whole of the outlay story,
which they are not.
What is needed and what

inter¬

ments

attain

first

troublesome

cover

even

the

ounce;

Government,

political parties,
to

However, even though no crisis is at hand, the
balance of payments problem is indeed too serious

economic

balance

per

determination

and that there is

dustrial and financial power in

if they have not already begun to assume,
that once the budget is balanced or is
showing a small
surplus all is well with our fiscal situation. Nothing, of
course, could be farther from the truth. It is not enough
to

For

emergence

and

news

States

under the terms and conditions

unfamiliar term is

present and

increasing frequency,
appearing in the business

its

present "dollar crisis"

payments deficit. Turning from gold technicalities,
Dr. Reierson urges we deal with root causes for which he

With

The United

gold stock, which is more than adequate to meet
all possible withdrawals of foreign funds.
There

deflationary

nor

Apparently, despite all the talk about paring expendi¬
tures and all the work that is said to have been done of

Section 1

—

would be made available to foreign central banks.
This determination is bolstered
by our enormous

backing notes and depos¬
foreign short-term liabilities.

inflationary

expressed

price at $35

departure from the

ance

the

has

now

our

and would relieve pressure on

next year.

validity in fact.

under the administration of both

Economist, Bankers Trust Co., New York City

deficit of

A balanced

In 2 Sections

Copy

The Balance of Payments

of the decline in business

son

Cents

Facing the Discipline of

The Director of the

year

Price 50

Net Active Markets Maintained

Underwriter

•

Distributor

Tb Lb W atson & Co.
ESTABLISHED

Investment

PROVINCE OF SASKATCHEWAN

CANADIAN

1832

3% %

SECURITIES

Members
-

$250,000

To Dealers, Banks and Brokers

Dealer

Due

Payable

Block Inquiries Invited

Commission Orders Executed On All

American

Securities

Stock

Exchange

•.

•

BROAD

STREET

NEW YORK 4, N. Y.

FIRST

gouthwe&t company
DALLAS

DIRECT

WIRES TO

•

PERTH AMBOY

MONTREAL AND TORONTO

Goodbody
2 BROADWAY

NEW YORK

IHunicipalBonds

yield 4.75%

Co.

DoMimox Securities
Grporatiot*
Associate

Member

of American

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

Dollars

93.75

FOR COMMUNITY

Teletype NY 1-2270

1967
States

DEPARTMENT

CANADIAN

Y-'J:

United
Price

New Yprk Stock Exchange

Canadian Exchanges

lilt

Debentures

June

40
1

NORTH LA

SALLE ST.

CHICAGO

Stock Exch.

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1 -702-3

PROTECTION
MUNICIPAL BOND DEPARTMENT

Bank

America

N. T. A 8. A.

Sao Francisco

Los

Angeles

,r"i
*4

The Commercial and Financial Chronicle

....

(2194)

The Security

Dealers only

For Hanks, Brokers,

our

in the investment and advisory

blanket

and

service

Burnham and Company,

cover¬

trading
problem, don't limit yourself to
regional service. Our large trad¬
ing
department and extensive
facilities

have

you

changes in metal
technology since World War II
have spawned a whole new group
of
growth
companies.
Among

potential markets—they also as¬
you of accurate executions.

have

capital-

ized

light

attraction

the r investor

SAN FRANCISCO

because:

•

fiscal

end

its

I960,

S. WEINBERG,

GROSSMAN

still

earnings

Odd Lots

and its

dependence

on any

one

slight.
(5) Its degree of market pene¬

NY 1-2762

Teletype No

its

continue

(4) Its product has a wide range
uses ranging from automobiles
and
missiles to women's shoes,

Issues)

3-7830

WHitehall

Phone:

generating

financing.

Exchange Place, New York

cash

now

expansion program without equity

BONDS
on

tration and saturation is still very
low.

well above the average for

Trading Interest In

Ameri¬

industry. For fiscal 1959,
turn
on
invested
capital
can

American Furniture

about

Industries

STRADER and COMPANY, Inc.
LYNCHBURG, VA.
TWXLY77

—5-2527—
Wire

New

York City

INTERESTED IN CANADA'S

EXPANDING ECONOMY?
Canada, the world's second larg¬
est

has

nation,

resources.

lation

Its industry and popu¬

constantly expanding.

are

"and

Thomson

Nesbitt,
pany,

untapped

vast

Inc., through

offices in Canada,

That

network of

firm

was

able

genuity of the management. The
first Heli-Coil inserts were made

by hand

of Canadian investment

Nesbitt,
pany

and

Com¬

is always ready to help in¬

stitutional
in

£-

Thomson

their

corporate

Canadian

investors

transactions,

and will be equally glad to fur¬
nish any

information about Cana¬

stainless steel wire that looks and
like a spring, and is used

NESBITT, THOMSON
COMPANY, INC.

25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4

and

feels

dian investment.

AND

BOSTON 10

to achieve as

high

European
company

degree

penetration in the automotive
as
its foreign licensees, its

sales would be increased substan¬

tially.
Manufacturers

gines,

outboard

aircraft,

missile

well

are

as
also

of stainless

ad¬

steel, and if they are

used, neither constant vibration,
nor. violent temperature changes,
nor continuous assembly and dis¬
assembly

can

there

the

market

are
identical

either

none
or

products

have

that

there

uses,

other

are

similar

that

closely

are
com¬

parable.
This
close-to-exclusive
position
is
maintained
and

■

pair.

Past

weld

up,

holes

alternatives

plug

threads.

With

inserts, it is now possible to do re¬
pairs on stripped threads very
cheaply.

firmly in place without the
a

lock nut

washer. For

what

Yamaichi
of New

York, Inc.

Affiliate of

Yamaichi Securities Co., Ltd.

Tokyo, Japan
&

Brokers

111

Investment Bankers

Broadway, N. Y. 6 COrtlandt 7-5680

Commercial&

military

vehicles

40%

Motor

vehicles, including
trucks, autos, roadbuilding equipment
20
Engines
8\
Electronics
other

aircraft, missiles & space

All

Annual

EARN

follows:

suggest Class "a" stock

per

small-loan

Dividends

1942.

Return

aggressive

chain.

paid

since

Currently about $6.50

share.

__.

ALBERT J.CAPLAN& CO.

Profit Margins

Members:

While sales have risen steadily,

startling. In 1955, after
margins were 4.2%. By 1958,
this had risen to 7.9%, and by the
first quarter of fiscal 1960, they
were
approximately 19%. These
increases occurred in spite of the
fact that
prices have been cut

Phila.-Balt.

Boston &

Stock Exchange

Pitts. Stock Exchanges

(Associates)

1516 LOCUST

ST., PHILA. 2, PA,

tax

Opportunities Unlimited
IN JAPAN

three times in five years. The im¬

provement

can

attributed

to:

1)
Increasing use of automatic
machinery. In three years, while
sales
lion

rising from $2.4 mil¬
$3.5 million, the labor

were

force has
to

250

been reduced from

employees. 2)

the

our
Monthly Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.

Nomura Securities Co.*Ltd.
61 Broadway, New York 6, N. Y.
Telephone:
This is

not

Green 9-0187

BOwling
offer or

orders for any

solicitation for

particular securities

,■

•

is conceivable that after-tax

margins
but

low.

for

360

control

tion

Write

Installation

of IBM data

could

continue

rise

likely that
management will again cut prices
to
discourage
competition
and
widen
its potential
markets. If
future

seems

sales

increases

are

saving*

faster rate than
flow

in the past, cash
(including depreciation, am¬

ortization

patents

and

earn¬

ings) is adequate for the financ¬
ing of required plant expansion.
Therefore, per share earnings can
be
expected to
continue
their
rapid rise.
The company's current ratio is
3.2:1. In cash and government se¬
curities alone, it has over $1 mil¬

tapped or threaded holes missiles and aircraft the savingslion. Part of this money has been
the insertion of screws in weight offered
by the elimina¬ earmarked
for
an
acquisition
This insert adds a tion of the nut and
washer are which will be announced; shortly.
strength, at the point of assembly, very
important;
for
miniature The firm to be acquired has sales
of about 2i/2 times the
assemblies
it
makes
original electronic
in. excess of $2 million, and could
contribute importantly to future
(This is under no circumstances to be construed as an
growth. No dilution of current
offer to sell, or
as a solicitation
of an offer to' buy,
Continued on
or

write

In terms of end use, the com¬
pany's sales breakdown is some¬

items,

Securities Company

Heli-Coil

been

bolt

Call

worn

has

years.

For current information"

were

retap

about

use

JAPANESE
STOCKS

increase in after tax margins

while on specials, it has
to
1/10,000,OOOths of an
inch. Were another company to
attempt to duplicate the Heli-Coil
insert, it is our belief that it
would ■ require
several
years
merely to catch up on the engi¬

; 4

branch office*

our

automo¬

the

worked

Mobile, Ala.
Direct wires to

outboard

(1) The company has about 50
patents with an average life of
seven

NY 1-1557

Nbw Orleans, La.-Birmingham,Alt

Maintenance and re¬

three ways.

(2) Engineering standards have
been issued on Heli-Coil products

York 6, N. Y.

HAnover 2-0700

Sales

strip their threads.

While

19 Rector St., New

three major areas:

avoided.

manu¬

finding it

inconel

currently break down into
1) New equip¬
ment. 2) Salvage. Until recently,
if the tapped holes on an assembly
line product were rejected, it was
cheaper to discard the product
*
than to repair
the holes. With
Heli-Coil
inserts
costing a few
pennies
each,
this
problem
is

earth moving equipment,
machinery, and commercial

line

prior

Steiner, Rouse & Go.

Market Breakdown

en¬

resulting in high labor
low margins.
The
quality of the steel purchased neering.
could not be adequately checked.
To ensure a flow of new prod¬
The manufacturing processes
ucts,
management
is
spending
themselves
were
not
accurate.
about 3% of sales annually on re¬
And, finally, the market for the search and
development. Out of
inserts had not yet been devel¬
this program have already come
oped. *
'
some exciting innovations includ¬
Heli-Coil's product is unique; a
ing 1) a screw Ipck insert which
precision formed, diamond shaped, is designed to hold a screw or
costs

and

municipal issues, corporate bonds

the

weather the early years is a trib¬
ute to the perseverance and in¬

tlie'U. S., and

and stocks.

insert is

Com¬

government

parent

such

metals

and

processing equipment
inventory and produc¬
roughly 40,000 dif¬
ferent items handled by the com¬
pany.
Since, the equipment was
installed, basic inventory has been
lowered despite rising sales. Pres¬
ent inventory turnover is in ex¬
cess of four times per year. 3) In¬
fiscal 1958 $1.25;
in fiscal 1959 soleted.
During that time, the com¬ creasing sales lead to a dispropor¬
$2.21; and for fiscal 1960, they are
pany has become accustomed to tionate increase in profits because
estimated at about $3.75, for the
working to tolerances of 2/10,- the basic cost of each Heli-Coil
year ending April 30, 1960.
OOOths
of
an
inch
on
standard

all types

—

the

•

■

14%, on common equity
by a large number of outstanding
percent¬
companies, including Bell Labora¬
will, be substantially higher,
since earnings are running almost tories, Bendix Aviation, General
double last year with no increase Motors, Ford, Westinghouse, Lock¬
in the total amount of debt or heed, Boeing, Chicago Pneumatic
Tool, Sperry Rand, Pitney-Bowes,
common stock outstanding.
IBM,
and AVCO.
In addition,
The company was founded in
military standard numbers have
1949, and operated as a privately been issued on Heli-Coil products
owned
organization until
1956,
by all
branches of the armed
when it became a subsidiary. of
forces. * When such specifications
Topp Industries. In October, 1958, and standards are in
force, it
Topp spun it off and it assumed should be evident that it is vir¬
its present form. Sales, in the first
tually impossible for competition
year were $250,000; for fiscal 1960,
to arise.
they are estimated at $4.5 million.
(3) The company has developed i
Earnings during the same period
very
advanced
machinery -for!
have risen from nothing to an
making its products, and for in-1
estimated $800,000 for fiscal 1960.
serting them on an assembly line i
Per share earnings in 1956-1957
basis. In five years, three genera¬
(combined 16 mos.) were $0.46; in tions of
machines have been ob-

Europe, is in constant touch with

possibilities

Hell-Coil's

from

ages

Commonwealth Natural Gas

Private

application
engine. Volks-

21%. For fiscal 1960, the

Life Insurance Co. of Va.

LD39

Corvair

the

hard-to-tap

home owners) for
motors, lawn mowers,
biles, etc. f ' V .
f

re¬
was

43)

and

one

field

Bought—Sold—Quoted

3) Thread repair kits (for dealers'

trans¬

General Motors

titanium

ex-r

Heli-Coil

aluminum

housing.

settled

field, for

using

strengthened in

(6) Its return on invested capi¬
tal
and
on
common
equity is

Bassett Furniture

facturers

sufficient

Bids

are

ficult

Security Dealers Ass'n

(Active and Inactive

Ford

inserts

improving.

problems during
existence, but is

...

Wm.

—

possible total redesign. 2) Cast-in

(3) It has weathered some dif¬ vantageous to use Heli-Coil in¬
technical
and
financial serts. Their use eliminates the
its 11 years of threat of rust, since they are made

& CO. INC.
7.

ample,

were

Murray L. Silberstein

(Page

•

Members American Stock Exchange

place

Members
N.

Illinois.

farm

now

inserts

In the automotive

Its after-tax margins are
running about 19% and are

(2)

Capital Corp.

Tegtmeyer, President, Wm.
Tegtmeyer & Co., Chicago,

of stainless steel threads cast into

licensees.

will have almost
doubled each year for four years.
share

economy

Heli-Coil

serts

per

«*

(Page 2)

multi¬

Louisiana Securities

Members New York Stock Exchange

Renault,
and
Fiat
(to
merely, a
few of :the
European makers) are buying in¬

the

Co.,

inserts which offer the advantage

(1)

Principal Cities

Electronics

mention

for

CHICAGO

Sil¬

can,

use

screws

wagon,

unusual;

has

New York 5

Teletype NY 1-40

,New York City.

that is turning
increasingly to aluminum, mag¬
nesium, and to plastics, the uses
In

for

Coil-

Corp.—Murray
of Burnham

als.

has

Corporation.

American Stock Exchange

Private Wires to

and

Heli-Coil
Heli

its

mission

plastics is the

Established 1920

PHILADELPHIA

weight

metals

Associate Member

•

Heli-Coil

charac¬

to cut the required

bolts

plying.

mUHhw

demand^ for

Corporation

BOSTON

the

this

Because

therefore,
number
half, to cut
their size, or permit the intro¬
duction of lighter weight materi¬
teristic,

serve

for

easing

incr

New York Hanseatic

WOrth 4-2300

that

those

sure

120 Broadway,

Corporation

striking

The

only broaden your

not

and American Stock Exchange

Heli-Coii

States.

New York City

York Stock Exchange

Members New

dealers

Next time

material.

MURRAY L. SILBERSTEIN

reaching banks, brokers and
throughout the United

age,

particular security.

berstein,

and reli¬

traders ,fast

affording

field from all sections of the country

participate and give their reasons for favoring a

wires,

Alabama &

Participants and

Their Selections

nation¬

private

network

wide

able

advantage

This Week's

each week, a different group of experts

A continuous forum in which,

Call "HANSEATIC"
Take

I Like Best..

Forum

Cover the Entire Nation

Thursday, November 26, 1959

Over-the-Counter

Quotation Services
for 46 Years

bolts.

any

security referred to hereinJ

page

National Quotation Bureai
Incorporated
Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y«
BAN FRANCISCO

)

Volume

190

Number 5902

The Commercial and Financial Chronicle

(2195)

Business Outlook for 1960
CONTENTS

By 0. Glenn Saxon, Professor of Economics, Yale University and
Special Consultant, Income Foundation Fund
Our encouraging economic future
saved is the

and how it

be sabotaged

can

subject dealt with by Professor Saxon. The noted

econo¬

he considers are our destructive practices and
policies that complicate investment decisions and endanger our econ¬

nomic

succinct but easy to follow solution for

sanity and health. He

—Roy

—Ira

gold clause in
it

would

our

money

inflation

end

In 1957 the U. S. economy soared
to all-time peaks in most all areas
of

activity.

fear

dustries

—Alfred

however,
ginning of the,

The

the be¬

came

Outlook

for

—J.

the

Decade,

1960-1969

reces¬

The three postwar, recessions of

1948-49, 1953-54, and 1957-58 were
typical business cycles of a free

War

World

II,

one

the

was

deepest
these

three

postwar

but

than

dustrial

clined

of the

In¬

back

boom

;

current steel

Peter

Dept.

STREET, NEW YORK

SERVONICS

Grace

CORPORATION

Devaluation-^-Robert S. Nattell

COMPUDYNE CORP.

l..____-uii^»l4

Commercial Banks Victims of Inequitable Tax Burden
—Hon. Ray M.

Gidney__liii^il^^iL^--^---w.

COLLINS RADIO

What Is So Different About the Chemical
Industry?

—Robert

B1 Semple______

"Labor Savings: Fact

Do Not Invest in

1__.

___„

Fancy?"—Allen W. Rucker.

ATLANTIC

RESEARCH

Europe—Roger W. Babson—11

HERMES
More Articles in Section Two

situation, the

(which began
can be ex¬
pected to continue into 1961, un¬
less industry foolishly over-builds

O. Glenn Saxoa

Dr.

WALL

Policy to Aid Our Balance of Payments

Hayes

We Face Dollar

ELECTRONICS

SECTION TWO of today's issue is devoted to the
proceedings,
editorial and pictorial, of the
recently-concluded Annual

about six months ago)

13.7%

Obsolete Securities

Objectives

present boom stage

between

Kintner_________

„

obsoletes!

Profitable

Portfolio With Long-Term

On this basis, especially in view

pro¬
de¬

duction

prosperity
usually lasts from 12 to 18

stage

in the

first two.

The

months.

recovery
came faster

and

recovery,

again.

re¬

cessions,

market economy that usually take
three to four years to run their
courses
from boom to recession,

This

and

Drug Business Review—John F. Bohmfalk', Jr.l_i._-__

sion since thg
end

Sociable

Fifties' Dollar Gap Becomes the Sixties' Dollar Glut

peaks

new

Buy steak with cash from
3

Cobleigh___

A Domestic

investment-erosion.

In the second half of

the year,
third

the

______Cover

Telephone: WHitehall 4-6551

and fixed obligations. Moreover, he
and

Co.:

COMPANY

TIRED OF TURKEY?

_____;

Income Tax Pointers for Today's Securities—J. S. Seidman

gations to their proper and historical financing status by reinstating

adds,

—Charles

thing to do, the author writes, is to reinstate bonds and similar obli¬
the

Pepsi-Cola

Common Stock

in addition to high interest rates. The

par

Reierson

your

The

threat of inflation continues to hang over our bond markets, the time
will not be far off when bonds could only be sold at heavier and

heavier discounts from

Business Outlook for 1960—O. Glenn Saxon________J_-

eco¬

for example, that so long as the

says,

AND

Facing the Discipline of the Balance of Payments

mist criticizes what

omy, and prescribes a

yCHTflMIP

B.S.
Articles and News

Convention of the NSTA and includes the

the pages

its inventories and increases prices
of products unreasonably (during

Communism, Commerce

(February) 1957 and (April) 1958
low point of the recession.
the
period
of
steel
shortages).
However, between April,
1958, Should this happen, a new (busi¬
and June, 1959, industrial produc- ness
cycle) recession may begin
tion increased 23%, rising, to a" to
operate, in late 1960 or early

•—the

following articles

indicated:
and

Commitment—Wm. C.

An Investor Looks at the Oils—Edmund

Sullivan

N. Morse__

J.F.ReiIIy&Co.,Inc;

Prosperity Period Ahead, With Stable Prices

Broadway, New York 5

all-time level.

new

1961.

In the first half of

■

•

Bank

1959, 16 out
major categories of indus¬
tries set new peaks of production.

However,
there'
are
several
major economic and political fac¬

Only three

ing

increases

failed to show

groups

These

1957.

over

were

decade, 1960-69, along with
recurring business cycles. These

primary metals, coal, and tobacco

factors deserve
trate

at its all-time peak.

quarter

1959,

tional Product

Gross

our

rose

it been settled

prior to Oct. 15, our second halfwould have maintained the
gains of the first half.
long-drawn-out

the

expected production of the fourth
this

development,

the

general consensus among econo¬
mists already was that 1960 would
be a more prosperous year than
1959

—

Product

trillion
The

steel

with

the

soaring

National

Gross

with

assure

time

per

was

an¬

esti¬

reaching,

billion,

while practically all

$505

(Editorial)

Insurance

Business Man's

Bookshelf

marriages
War II, our birth

World

United

with

States

during

and

rate

0.7%.

increase

less

was

than

tween

increased

1951

and

1.4%.

the

1958

Be¬

ratp' of

This sharp reversal in trend has

,been

major factor in the post¬
war expansion of the U. S. econ¬
omy.
In the 1960's it will be an
even

greater factor.

The

children

born

From

Washington Ahead of the News—Carlisle Bargeron

Mutual

Funds

Reporter

age

the

and in the 1960's will be
Continued

in¬

Teletype NY 1-1825 & 14844

Direct JFircs to

;

Our

Reporter's Report

Public

Utility

Securities.—

Now

Prospective

Security

Registration.

The

Security

war¬

Corner____.

You—By Wallace Streete

and

SELECTED GROWTH

Offerings

Security I Like Best

SITUATIONS
Exceptionally Suited for

The State of Trade and Industry

Dealer Distribution

4
*

Washington and You

mar-

page

St. Louis

Salesman's

The Market

Los Angeles
San Francisco

Railroad Securities

Securities

Cleveland
Dallas
Philadelphia

Chicago

time marriages are now coming of

$510

Governments—-

inc.

40 Exchange Place, N. Y.

HA 2-9000

Observations—A. Wilfred May
Our

mackie,

____,

Tax-Exempt Bond Market—Donald D. Mackey—
of

request

Singer, Bean

Einzig: "Encouraging Second Look at Throgmorton Street".

Between 1941 and 1950 the

average

Dealer-Broker Investment Recommendations

rate in

sharply—

rose

doubling of the rate of in¬
in
population.
Between
1940 the average annual

crease

1931

enormous

*Prospectus

Coming Events in the Investment Field

News About Banks and Bankers

However, due to the

.___.

France.

increase

Copeland Refrigerator

___Cover

Stocks__-___-_____

Indications of Current Business Activity

National

Gross

Product

say

that

See It

and

Kellett Aircraft

population would
become static by 1960-65—as had
already happened in England and

will

1959

the

Between

year.

mated that U. S.

1960, which does not appear like¬
—

num.

the

generally higher levels of activi--*'
ties in
1960—(unless the strike
continues for a long period in

ly)

than 0.7%

increase was 1.8%.

continuation

strike

population

our

1940 the rate of increase

dollar mark.

long

the

year

half

the

across

1930's

of the

1930 and

the

quarter of 1959 into 1960.

Bank

declined

strike,

however will throw much of

Before

decade

averaged less

year

The

the

Machines*

As We

rate of increase in

the

Had the current steel strike not

had

Critical Decisions—Herbert V. Prochnow

Capehart Corp.

Regular Features

Population Growth

Na¬

Basic Atomics

Dashew Business

decisions.

ment

O'Leary

types

front the nation and the managers
of Mutual Funds in their invest¬

all-time

$457 billion (annual rate)
fourth quarter of 1958.

vital

Canada Benefits From U. S. Capital Inflow

A Time for

analysis and illus¬
of difficult and
problems which will con¬
the

DIgby 4-4970

—Henry Kearns

Inflation Can Be Licked—James J.

In the second

peak of $485 billion (annual rate),
compared to the previous peak of

developed

Gainsbrugh__________

Capital Trends—Jesse P. Wolcott.

IIow

tors which will dominate the com¬

manufactures.

However, national
expenditures for new plant and
equipment were still lagging sub¬
stantially below their 1957 levels.
In June, 1959, employment was

—M. R.

Assembly Products, Inc.

Cooper Tire & Rubber Co.

Moore-Handley Hardware Co.

Washburn Wire Co.
Published

For many years

have

specialized

Twice

Weekly

The COMMERCIAL and

DDCKTCDDirn

mlllLrLllllLU

CTdPKC
0 IUUlW

Company

FINANCIAL- CHRONICLE
WILLIAM

DANA

Reentered

COMPANY, Publishers

Reg. D. 8. Patent Office
25

Park

Place,

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Founded

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Stock

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Exchange

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Every Thursday (general news and ad¬
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corporation

Refractories

& Abrasives

Thursday, November 26, 1959

records
r

Febru¬

Rates

United

Pan-American

Other

TELEPHONE HAnover 24300

matter

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

9576

MORRISSEY, Editor

DANA

CLAUDE D.

Electro

account

subscriptions
made

in New

and

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Monthly
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the

exchange,

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Tele: NY 1-1385

The

stepping
taurants,

Pepsi-Cola Company-

places

By Dr. Ira U. Cobleigh, Enterprise Economist
in earning power displayed by this

fast

growing soft drink company.

dual

centrate

facility

which sells 40% of its sugar

under

nancial

uct to bottlers within an

the

jack¬

achievements

not

remarkable.

other industrial

big improvement

started in 1950.

effectiveness

The

Then

meager

ing

and

re¬

the entry
new

The accent has
changed from the economy appeal
("12 full ounces, that's a lot") to

Ira

Cobleigh

manage¬

the

vescence

effective group

company a new effer¬
in sales and moneyvjnak-

To illustrate, sales for 1950
were
$40 million; for 1958 they
were up a zestful 241%, to $136.8
million.
They'll be around $150
million this year.
To put it an¬
other way, in 195.0 Pepsi-Cola was
outsold five to one in case sales
ing.

sophisticated

smart living.

and

plenty

line

this

increased

this

all

weather.

the formula

First

was

to make the beverage not

quite

lying

came

variety of sizes—now a

big economy "Hostess"
well as the traditional 12ounce, the 10-ounce and 6 V2 -ounce
bottle sizes.
Pepsi-Cola has em¬
26-ounce

size,

phasized larger bottles for the "at
home"
market,
which has ac¬
counted for roughly %rds of sales;
with the smaller sized bottled sold
at

ballparks,

race

beach

tracks,

stands, at pool-side, and in vend¬
ing machines.
Bottlers are, of course, a vital
element
in
Pepsi-Cola
success.
Bottlers

generally got into a post¬
war squeeze between rising costs,
and the 5c retail price that had
become traditional. The upping of
this 5c price, begun early in the
1950's, met with some resistance,
but now higher retail prices are
taken for granted, sales are rising
steadily, and bottlers are. happy
their

and

numbers

sells
to

its

over

own

225

franchised

825

throughout
over

are

growing.

manufactures
and
syrup concentrates

Pepsi-Cola

the
82

bottlers

world, including
foreign countries.

the

that,
Sep¬

produced
in August and

favorable North Ameri¬
It is spreading

climate alone.

can

its

concentrate,

its

But Pepsi-Cola is not re¬

tember.

sweet, and more refreshing. Bot¬
tles
were
newly
designed and

summer

1959

and

particularly

changed

companies

hot

affecting

elements

the

soft-drink

thing,

of doing,

bit

There must be

hidden persuasion to
of suggestion
as
sales
17% in the first half of

year.

One

Cola; in 1958 the margin had been
This all

narrowed to two to one.

subtle

and

approach. Now it's "Be Sociable."
Pepsi-Cola is offered as one of the
elements
of
gracious,
charming

by its renowned competitor, Coca-

took

with

selling widely
that

tries

have

bottling

in those

and

coun¬

while

summer

we're having

winter—South Afri¬
ca, Ghana, Nigeria, Brazil, Argen¬
tina, etc. In fact, by next year,
close to 50% of sales will be from

foreign operations.

There are 104

Any consideration of Pepsi-Cola
common, as an equity with growth

characteristics, must take into
count

the basic trends

ac¬

the in¬

Last year American con¬

dustry.

sumption of carbonated beverages
worked out to 193 V2 bottles per

about

This is up from 158 in
and the figure should be
197 for 1959, and 240 by

1965.

All

capita.
1950;

of
A

this

The

team

total

passing year, a rapid
of bottling companies
the
Pepsi-Cola franchise,

ears,
They like, too, to note that
Pepsi-Cola increased its dividend

five times in the

same

Capitalization
in

.968,541

6,354,915
the
is

long-term

and

debt

The

present dividend
share which, at cur¬

per

rent market

price of 35 affords a
yield of 3.44%.
If this seems a
bit on the meager side it should
be borne in mind that rising earn¬

soft

drinks), heavy
promotion and advertising in the

consumers

industry,

and

rising

per

capita

income.

Pepsi-Cola,
this
not

major
only

in capitalizing on
industrial uptrend is

aggressively

traditional

home

selling

market

but

its
is

Reserve

following

business

has

Board

summary

financial

and

Employment

Seasonally

•

ment

52.0

163,000

slightly in October when the steel

creases

strike

extended

fabricating

into

its

fourth

tries continued to draw

inven¬

employ¬

establishments

October

ings

well lead to

may

ment

the

struction

metal

and

pnetal
Employ¬

industries.
declined

also

the

service

.and

dividend

6.0% of the civilian labor force.

recovered

the July

number

housing
units
started, dropped. The money sup¬
ply
estimate
for
October
was
somewhat lower than for Septem¬
ber.
Prices
of
basic
industrial

materials

have

continued

in¬

crease.

Industrial

earnings.

field distribute around 70% of net
in

Since

cash.

1952

Pepsi-Cola

has

averaged a payout of about
60%. Per share net last year was

with
unremitted
profits
foreign
wholly-owned

$1.88,

its

from

subsidiaries excluded. These would
have added 17c

would

share.

This year

expect reported net in

1947-49

Production

decline

points

June.

Revision

August level

consider
at

reluctance

Pepsi-Cola
its

round

common

all-time

now

index,

peak

point

reflected

to the
revision

new

high.

October,

indicated

were

slight

both

durable

and
nondurable
goods
manufacturing.
Steel mill operations in October
at

13%

of capacity but

the reopening of steel

ingot

output

second

rose

week

46%

mills,
in

the

November.

Ac¬

partially overcome by
the expectation that the stock will
show

of most

$2.50
the

times

this

the
one

tivity in the machinery industries
declined
only a little from the
September record level as output

basis

high,

point below

declines

with

some

one

output of nondurable goods to

remained

stock

that

year.

today

sells

earnings.

thing to note about this
equity is the defensive qualities it
provides. In the recession of 1958,
Pepsi

actually increased its sales
by $11 million and its net per
share by 34c over 1957. With our

to "Be Sociable,"

whatever

producers' durable equip¬
maintained; steel short¬

ment was

curtailed

ages

Another

metal

Production of textile and rubber

ther

security check.
come a

long

way

22 years ago, for control of
Candy Co. which then owned

curtailed

generally ample.

Commodity

Prices

earlier.

Prices

such

dustrial

materials

copper,

zinc,

further in

rubber

rose

early

and

prices

but

materials

and

built-in

effervescence,
an

were

continued
to
decline, reflecting
mainly further decreases in meats,
and averaged 5%
below a year
ago.
With
market supplies in¬

creasing more than cons mer de¬
mands, livestock and meat prices
have declined

10 to

15%

over

Bank

Total

Credit and Reserves

commercial

tinued to expand
U.

The

active

securities

supply

money

of October
a

was

year

Member

but

declined

at the

about 1M>%

earlier.

bank

borrowings from
averaged $835

goods

reserves

changed little at advanced levels.

million

in the four weeks

output

remained at
work stoppages

production
levels

reduced

and

nondurable

Nov.

11.

excess

Required

reserves

mid-

iron

November.

sup-

and

copper

ore

mining.

Public Service

Reserves

were

Company

Preferred Stock
Common Stock

327

Street.

Warrants

throughout the United States and Canqda
Forni Mergers, Inc.

•t

("Special to The Financial Chronicle)

HOLLYW OOD,

Calif.

—

Bought

—

Sold

—

Quoted

Mergers,

Inc. has been formed with offices

OF INVESTMENT SECURITIES

6777

Hollywood
in

engage

OfFcers
J

dent and

Dominick

Members New York, American & Toronto Stock
14 WALL STREET

Exchanges

NEW YORK

Boulevard to
securities business.

John

S. Hill, Presi¬
Treasurer; Eugene T. Al¬

are

cAllen

bright, Vice-President; and E. M.
Godsey, Secretary.

Proprietor

ALTON, 111.—Willis F. Slayton is
now sole pronrmtor of
Slayton &
Thayer, 229 Market.

Company

Established 1922

Now

in¬

creased from mid-October to

WORTH, Fla. — Marshall
Company of New York City has

North

$405

ending

continued to limit coal output and

of New Mexico

end

larger

and

October

other

ascend¬

office

also

million

LAKE

branch

con¬

adjusted

seasonally

somewhat further

than

loans

and holdings of

Government

rose.

credit

bank

increased in October

Opens Florida Branch

the

year.

the Federal Reserve

most

ing dividend trend.

opened

most

finished

stable. Meanwhile,
prices of farm products and foods

products

stopped eating
candy but
they've sure been guzzling Pepsi.
Caps off to Pepsi-Cola, the stock
the

in¬

scrap,

late October and

November,
fabricated

basic

steel

have

sparkling earnings and

late

shortages, dealer

the property. The tail has wagged
the dog since.
Not that people

with

With

mid-November, the level of
wholesale commodity prices was
unchanged from a month earlier,
and also unchanged from a year

declined somewhat fur¬

Minerals

rugged proxy fight, back

models.

new

such

early November.

correspondent is hobbling down to
the post office to pick up his social

continued

some

equipment,
structural
products, and major con¬
sumer appliances. Auto assemblies
rose
more
than seasonally from
September but output was limited
by steel shortages in late October
and
was
severely
curtailed in

products

Pepsi-Cola has

industries

metal

the motivation may be when your

since the

output

consuming

farm

the

assemblies

auto

the

the order of $2.15 with 30c in the

there

148%

below

September

foreign accounts.
If

average,

seven

the

duction

stocks declined contra-seasonally.
Stocks
of
other
durable
goods

Preliminary estimates
of
in¬
dustrial
production
in
October
a

Seasonally adjusted retail sales
rose
3% in October, to the peak
of
July, reflecting a sharp ex¬
pansion in auto sales after intro¬

October by steel

the revised September figure and

heavy plow-back in
Most companies in this
a

Distribution

peak while

calling for

Loft

UNDERWRITERS AND DISTRIBUTORS

con¬

industries

in volume. Retail sales in October

show

some

Correspondents inprincipal cities

million, reflecting mainly de¬

month,

metal consuming indus¬

adjusted

nonfarm

declined

only

increase very shortly. There is no
tradition in the soft drink industry

rising number of teen-agers (avid

based

the

Industrial activity declined

the

of $26,-

shares listed

common

NYSE.

$1.20

period.

consists

to double in the next 20 years, mil¬
lions of new Pepsi fans are lining

Federal

issued

below-twenty population expected

The

entry
of
Pepsi-Cola,
and tories and imports of steel. Re¬
but increased in trade and State
steadily expanded sales in many- ductions in activity spread fur¬
and local government. The num¬
foreign lands, a dramatic rise in ther in early November and while ber of
persons unemployed, at 3.3
vending machine sales, and most reactivation of the idle mills be¬
million in October, differed little
impressive of all, a flat 800% in¬ gan on November 7,
recovery in. from
September
but
since ;it
crease in net income from 1950 to
output and employment in1 re¬ usually aeclines, the seasonally1958.
This is the point at which
lated
industries will be limited adjusted
rate rose from <5.6 Xo
perceptive investors prick up their until steel supplies are available

the

this

Auto Production

Business Failures

Commodity Price Index

were

higher sales

each

should

bottling plants in Canada alone.

discontinued.

expansion

for these purposes.

ment echelon. This
gave

advertising

Pepsi-Cola is not one to
the money when it comes to
this advertising pitch. It allocates
roughly 20% of sales for advertis¬
ing and promotion and will lay
out around $30 million this year

rejuve¬

nated

the

die

spare

earn¬

vitalized

their

programs.

with

power,

was

users.

live

drinks

Soft

tired

prod¬
economic

geographic area, and the balance

pot as well.

company,

king-size refinery

Food Price Index

TRADE and INDUSTRY

conditions for November:

main

Retail Trade

Chairman

City

and

management

Carloadings

lines—

new

national

it's been
hitting the fi¬

years,

senior

The

plant at Long Island
only manufactures con¬
but includes a
bottling

some

Electric OuOput

The State of

provided by Mr. Herbert L. Barnet, President, and Mr. Alfred N.
Steele, Chairman, which had
shepherded the corporation's spec¬
tacular progress since 1950, was
terminated by the death of Mr.
Steele last May; and the office of

and, in recent

not

has

Thursday, November 26. 1959

...

Steel Production

and

lime flavor.

Pepsi-Cola also sells through 20
company-owned bottling plants in
the United States and 17 abroad.

may

entertainment.

C^hronicle

soft drinks led by Teem, a lemon-

be the most
topical time of year to write about
a
soft drink company but quite
regardless of season, Pepsi-Cola
hits the spot

Fall

res¬

The

Some notes on the refreshing rise

sales in schools,
vending machines,

introduced

also

Sociable and Profitable

Late

■

The Commercial and Financial

(2196)

Broad

Street, New York 4, N. Y.

Telephone HAnover 2-2600

Teletype NY 1-1017

Volume 190

Number

5902

.'. The Commercial and Financial Chronicle

(2197)

lars of fund shares sold under the

plied

mainly by an increase in
System holdings of Government
securities and gold stock.

OBSERVATIONS...

Yields

Security Markets
Treasury

singles-payment. and
under
the
Voluntary plan with its equal com¬
mission
payments.
And, second,
the very necessity of using strong¬
er
bait
for
securing additional

MAY

WILFRED

se¬

curities, which had declined from

salesmen

mid-September

suspicion that Fund distribution
is being overdone, including sales
to
people
who
should
not
be
buying them. The lowering of the

creased

have

somewhat since the

week in
and

highs,

October. Yields

in¬
third

CURBING THE "ON-THE-CUFFERS"

State

local government bonds have

declined

further

corporate

those

while

bonds

have

highest
authority, is exploring the possi-

rela¬

been

tively stable. Common

The SEC, we learn on the

mid-October.

the

third

week

October

tion

arrange-

m e n

under

one

year,

the

tual method of

years; and so on

In-

selling mutual

scale, to the end of the 12.^-year

funds

contract

Treasury sold for cash $2 bil¬
lion of Jupe tax
anticipation bills.
early November, it offered a
new 4%%
certificate and a fourof

holders of

note

billion

issue

the

10%

1,1 0 0,000

Above

this

are

will

week

compared with
Preliminary figures
compiled by the "Chronicle"
based
upon
telegraphic
advices

try,

indicate

ended

that

for

which

States

it is possible to

last

totals

stand

week in 1958.

tive

summary

leading

1959

York

$14,855,818

$11,929,946
1,311,134

+10.5

1,286,000

1,240,000
846,448

3.7

7.4

909,171

details

wide

course

pear

nation¬

the

Monday, Nov. 23.
Steel

Industrial

Attrition

relief

real

for

steel

users

persist,
In

"The

Iron

spite of the

pected
a

lack

for

the

question

major

mains
mains

r 1

moving

before

There

lag,

but

have

stocks

far,

been

One
rate

old

still-could

less

than

out.

sum

The

expected.

big reason behind the good
shipments:
Automakers
up

with

conversion

ingots

and

tonnages
semi-finished steel

into the mill pipelines.
"The Iron Age" says

Continued

the

out-

page

for

the

with

the

$120

53%

fee

initial

first

"creation

custodian
a

salesman

lump

year's "dues."
charge" plus

of $7, totals $127,

cost deduction

pay-in.

from the

In the second

and succeeding years the monthly
oharee drobs to n total of SI 47
si7*u fnr th* vpar_fiifi4(Wvi:
$17.64
for the year—$10.40 of
this going to the salesman
and
$7.20 to the bank.
m-

mission

Thus, if the Plan should be ter-

ANNOUNCE THE

FORMATION

one

broadway,

new york 4,

BOwling Green 9-7372

Teletype—NY 1-5389

PRINCIPALLY

THE TRADING

OVER-THE-COUNTER SECURITIES

the

body,

licensing

IIIAMi SASSA

might

the

Stock

matter

preferable

fact,
buy

close d-e

d i

t s, on the M. I. P. Plan

s c o u n

funds

available

Defense

the

frequently made of

first-year

sales

commission

blow-up, by pointing to the equally
disproportionate
"take" ' of
the

first-year's premiums in the sale

policies.

benefit

such

claim

that

lowing the initiation of the policy.

in¬

the

put

value

liquidity throughout other se¬
areas.
The supposed ad¬
illiquidity

vantage

tractual

fund

technique

with ' the

directly
stress

con¬

investment through

contractual

with

liquidity

the

held

the

sating

open-ends is the compen¬
advantage

insurance
premium is
industry suffering from
speculative excesses.
not

their

•,#'

...

In line with the

history of reg¬
ulation, the Fund industry must
get on the move with additional
self-imposed
restraints, or else
the Federal Government will.

con¬

advan¬

"liquidity

the

And

favor¬
afforded

out by the open-end
funds in selling their own shares.
Chief offset to the buying "load"

tage"

for buying life insurance
protection,\ with full coverage

given for death even if this should
occur on the day immediately fol¬

completely

the

with

this

that

say

for

But

paid less

against

him

■insurance

In Investment Business
(Special to The Financial Chronicle)

LONG BEACH, Calif,

The Rex

Hodges Realty Co. is engaging

securities

business from

fices at 408 East First Street.
ficers

are

of¬

Of¬

William Barbee, Presi¬

dent; Rex L. Hodges, Vice-Presi¬
dent and Treasurer, and H. M.

great Harshaw, Secretary.

the

perhaps

could

two pay¬
ments, he claims to have mis¬
understood the deal; this is done
if,

after

DIRECTORS

The

Adolf k. Eitner

R. BECKETT

JOHN

(LOS ANGELES)

(SAN FRANCISCO)

now.

Two-Fold

Benefits

suggested

line

briplies a number ol advantages
a^onS practical as well as ethical
'r»
/\ \
of

/MT» rJ
Instead

M
lines.

+
K/v
the

Robert E. Leslie

reform

n I Afiw* n w
salesman's

(NEW

(NEW YORK)

early near-exit from the
scene, gearing his
material selfinterest to the contract's perpetu¬
automatically

would

alter

^IS sa^s P.11' ^ns^a^ of merely
concentrating on getting the customers name on a contract, his
emphasis \vould rather be directed
J0 demonstrating the woithmf a

long-term contract. Deterrence of
the buyer from breaking-off his

YORK)

paul a. conley

Frederick

present

ation

VICE PRESIDENTS

one

instances

some

FOLLOWING ELECTIONS:

Dealers.

contract

be cancellable without cost to the

buyer,

WE ANNOUNCE THE

National

the

Securities

Association

(NEW

Edward

L. Miller

YORK)

Glassmeyer

(NEW

YORK)

William T. Patten
(SEATTLE)

nleland B. Van

Richard M. Link

would

Payments

broadened

beyond merely the penalty in his
"
of statistical return,

sacrifice

which, in
to

any

event, is not at all

him.

realize

the

early

ticularly

Many

buyers

incurred
termination;
par¬

MEMBER

THE EXECUTIVE

COMMITTEE

penalty

the fact that

including

john

inglis

(SAN FRANCISCO)

investment
the
concurrent expenses. Even profes¬
sionals
in
the
industry do not
realize this, or else profess to be¬
lieve that it is proper to depend
on
capital gains to shorten this
7 V2-year "cooling-off" period.
takes

7V2

The

main

years

get

against

even

Demand

reason

advanced

for

their accelerated commission is its

ignores

There

two

have been'

important facts.
regular-

enough

commission salesmen
the

ten-and-more

to%istribute

billions of dol-

Arsdale

(LOS ANGELES)

this
I ft.7.9

The sales¬

though he may have
left the scene, could possibly be
located through registration with

indispensability in securing the
services of vigorous salesmen. But
Xocemher 2.7.

Exchange.

always avail¬

are

discounts

even

man,

Salesmen

ENGAGING

able

customer's withdrawal.

FRANK SASSA COMPANY

several of which

be difficult, but probably not
wholly impossible, to require a
pay-back oi his commissions by
the salesman in the case of his

income

•

his

amendment

major

by the Stock Exchange as well as
many savings media. Furthermore,
and closer to home, it is at vari¬

sought
by the regulatory authorities is
an
offset to the weighting of the

PLEASED

ance

The

should

good.

own

similarly

one

discipline

able

payments..

not

ARE

maintenance

buyer's

clear

commission

his

for

salesman

flicts

the

linking

through
"net"

salesman's

in"

the

This salesman s com¬
is payable as the
subscriptions come in—

first year's

steel

placing sizable

are

the

$80

sometimes

shipping

rnd

over

50%

the

pays

*~~

monthly

loaded

holding

$80.

mission

problems

most

•

about

up,

run

11%

distributor

Ihey will have to process new in¬
gots

»T t

distributor takes

the

shipments

? A

$240 of payments, or $120, as a
"creation charge." From this, the

national

keep

looked

whoJe Period- But in the first year

the

metalworking
weekly cautions that if mills are
to

Under the Contrac¬

gate

pipelines?
The

plan calling for a total pur¬
chase of $3,000 via monthly instal¬
ments
of
$20,
the
distribution
and bank charges (of 3%) aggre¬

fast
last

How

through

move

type

oniy

year

the mills,
supply re-

answered
answeied.

steel

new

can

it is made.

pays

who terminates the contract nr the

Age" reports.
better-than-ex-

performance

Voluntary

automatically penalizing the buyer

will

steel

the

motive

the

liquidity element
investment.
Remedy
is

regarding

the early period is
ascribed by the' industry to the
need for getting aggressive and
knowledgeable salesmen. It would

still some.weeks off and industrial
attrition

payments,

per

twice

daily.
Rela¬
illiquidity is the argument
used against the closed-end
funds,

•

curities

sales charge in the first year. Such
allocation of the salesman's com-

tionately lumped at the beginning,

year's

value

asset

tive

against' the temptation to stop his
saving.;" In
other A words, : he is

leads to abuses both in selling and

net

ascertainable

inconsistent

contractual-

the

Plan, in contrast, the distri¬
bution
charges
are
dispropor¬

Shipments of finished steel are
running ahead of mill timetables,
But

steak").

tual

Prolong

for

first

the

out

the

overlooks the fact that the correct

ness

plan which, with
about 600,000 already outstanding,
are out-selling the so-called Voluntary units.

Shortage

(per¬

"Reach

the regu 1 a r
proportionate distribution
charge on each periodic payment

issue

our

slogan

plan the buyer

of bank clearings ap¬

page

(on
group
of

cardholders

the

instead of

Under

Further

offerings

selected

now

some,

+22.9

1.448,903

Philadelphia.
_____

extend

Particularly popular, and worri-

Chicago
Boston

ready¬

"penalty" type

1958

stock

some

,——000 omitted—^

Nov.il-—'

lists

mous

of the
centers follows:

money

Week End.

mailed

haps with

Our compara¬

for

leading

now

Funds for choosing by their enor¬

$27,800,006,296
$25,272,818,600
for
the

against

New

menus?)

same

with

gun

Our preliminary

year.

the

its
far-flung "off-the-cuff" facilities
to Fund buying. This will be be¬
arrangements

ing

obtain
weekly clearings will be 10.0%
above those of the corresponding
week

one

clubs" is

"credit-card

week

indicated.

to embody rationalization.
importantly rests on

vestor,

essential technique of taking the
major portion of the salesman's
For total 12-year-or-so of commissions

per

clearly

example,

Saturday, Nov. 21, clearings

for all cities of the United

bution

coun¬

the

other

month. Continuing acceleration of such distri25,000 initiations

ago.

from the chief cities of the

with

(the Monthly Investment Plan ad¬
ministered by the Stock Exchange
firms,
whose only cost is the Stock
by the
Exchange commission, amounting
to a maximum of 6%).

buying
liquor?) Apart from the dubious¬

believe that the Contractual Plans'

time

any

asset value—with the "box score"

alty to .keep the. buyer disciplined

authorities, along
objective
observers,

allowing hold¬

the

for

Boon (?)"

through
cash-in

ers

the alleged need for a heavy pen¬

the

The regulatory

outstanding, which huge
rate of

now

well

"Lock-in

"locked

Salesman

total is being swelled at a

increase

people.

(Might not

Curbing

Sought

A. Wilfred May

payment plans

Week

clearings

year

Reform

routine.

Clearings
1958

the

growth in the

ex¬

reasons

wrong

their
will in¬

Justification

restore

merely
buyer's principal.
and

charge,

wrong

appear

capital

absence

instalment

Bank

tion

purchases

com¬

arguments in
defense of the contractual system

but including average in¬
come return, 7.% years must elapse
before enough investment income
has accrued to cover the acquisi¬

vast

stimulus,

crease * their

The

gains,

lately

by "the

the

salesmen,

hiking

Some of the other

The acceleration
deductions means

expense

the

remuneration

down in a sliding

period.

that

been

erated

changed.

show

has

the

sharply accel¬

ma¬

was

distribu¬

tion

turing in. 1962 but, on 90 days'
notice, redeemable next February;
SI.7

ovpr

fund

exchange to

billion

.shares.

LonS biewing,
over

note

also offered

in exchange for
publicly held maturing securities. The new notes

were

contrac¬

the

with

bined

the deductions
pi' amount to 53.02%, and to a 30.18%
deduction if carried for only two
end

the

year, 4%%
$3.8 billion

standards

butties °i effecting a major alter- the payments mafcle by the puration of the salesman's compensa- chaser; if it is terminated at the

stock prices

have' "shown~Tittle"'neT'change
since

minated after only six months, the
deductions amount to 53.02% of

confirming the

may

liquidity

Blyth l Co., Inc.

€

(2198)

The Commercial and Financial Chronicle

socially

righteous

Thursday, November 26, 1959

Bank

by many,
politically

group.
Scaled out to purchased
$3,000,000
Pitts¬
for 3.80% bonds, the bal¬ burgh,
Pennsylvania
3
unattainable.
ance is said to be
about $2,- bonds (1960-1984), Scaled to
The
basic opposition
par, the issue met with favor¬
to 200,000. ;
The First Boston Corpora¬ able investor reception- with
the proposal derives from the
State's Rights concept. There1 tion-Bankers Trust Company- this morning's (Nov. 25) bal¬
Chase Manhattan Bank- ance
being $1,100,000. The
may be less devotion to this
&
Company-Smith, Bankers Trust Company-First
concept now than there was Drexel
Continued on page 8
twenty-five years ago. How¬ Barney & Company group
ever, it seems a fair generali¬

TAX-EXEMPT BOND MARKET

but

BY DONALD D. MACKEY

which

were

par

„

The

general price level of Grapt
County,
Washington
tax-exempt bond market PUT) No. 2 31'hs, Nov. 1, 2005;
is about
unchanged from a Illinois TqII Revenue issues;
week
ago.
Although new Indiana Tolf^oad 3J2S, Jan.
issues have come to market 1,
1994; New York Port Authe

zation that present holders of
/
thority issues; Pennsylvania so-called tax exempt bonds
Turnpike 3.10s, June 1, 1993; need fear no quick change in In the following tabulations we list the bond issues of
and others with less impor- the tax status of their hold¬ $1,000,000 or more for which specific sale dates have been set.
ings. Few of the arguments on
tant gains,
Information, where available, includes name of boreither
side
of
the
question
roxver, amount of issue, maturity scale, and hour at which
available.
T h e
Commercial
Tax-ExcmplH^ Under Fire have been much altered. The. bids
will be opened..
%
'
and
Financial Chronicle's
It is interesting and lmpor- market seems not to have
at

Larger Issues Scheduled For Sale

scales

indicating a higher
price level, the pattern has
actually been relative as
against the lower coupon inventory
offerings variously

High

Grade

3.477%

Bond

this

changed

from

3.46%

tant to notd that Congress is

taken

little

again, considering the subject
of state and municipal bond

troversy.

Index

week;

last

exemption. The House
Ways Means Committee re-

con¬

November 30
Montgomery

Street'"Float"

tax

v^eek.

cognizance of the

Water

.Works

% Sanitary Sewer Board, Ala._____
Up Sharply * Washington University, Mo..__„_

The street float of state and

(Monday)

and

10,000,000

1961-1981

3,411,000

1961-1968

10:00

December 1 (Tuesday)
cently considered the general municipal bonds as indicatedColumbus, Ohio
" 10,010,000
1962-1986
The
dollar
quoted State, subject, with experts in the by the "Blue List" was $308,- Edwardsburg Con. Sch. Dist., Mich.
1,495,000
1961-1989
Municipal and Authority field of economics as well as 046.000 on Nov. 25, 1959. A Floyd County, School District, Ga.
1,025,000
1960-1979
Los Angeles School District, Calif.
term bond issues are in sev- other interested
21,500,000
1961-1985
parties pre- week ago the total was $263,-.
New
Brunswick, N. J.
eral instances
1,001,000
1960-1984
This
increase
has
up as much' as senting their views. Discus- 470.000.
Milford,' Conn.___ 1 1 ___1
2,500,000
1960-1979
a point, while
only a few are sions of this fundamental sub- been partly brought about by Salt River Project Agric. Improv't.
slightly lower. As a group, ject
and Power District, Ariz.__
are
not
new
to
the balances in the larger recent
15,000,000
1963-1992
these
securities
have ..acted Congress.
1,000,000
1960-1979
During each Ad- new issue accounts. The $55,- Southwick, Mass.
particularly well during re- ministration, since the advent 125,000 New York State issue
%
December 2 (Wednesday)
cent months. Improved earn- of the Federal Income Tax which was offered Nov.-10
Orange County, N. Y.__:______l_z_; ' 1,970,000
1960-1973
ings have led to better mar- Amendment, a Congressional had a balance of about $21,- Peoria Public Building Comm., 111.
4,800,000
1961-1979
kets, excepting for brief committee, or a member of 900,000 on Nov. 25. The $24,- *Sayrcville, N.
1,120,000
1960-1984
periods during general mar- the Administration, has seri- 780,000 Philadelphia, Penn¬
December 3
Dollar Bonds in

Demand

Noon
%
8:00 p.m.
2:00 p.m.

Ohio

week

included

taken

The

last

the

serious

matter,

considera-

Turnpike 3%s, due June tions were during the second
Chelan County, Roosevelt term when Secre-

1992;

sylvania
issue
offered the
same day had been sold down
about

$9,000,000.

Los Angeles County,

Calif
Marple-Newtown Joint School
Authority, Pa.

has

Massachusetts

been considered necessary

13,000,000

California

(State)__.__

_____

(State)

3%%

1978-1980'

3.70%

3.55%

done

3%%

1980-1982

3.55%

3.40%

stances.

3.55%

New Jersey Highway

1978-1980

New York

1978-1979

3%%
V/8%

3.10%

tory

1978-1979

3.25%

3.10%

3*/2%

1977-1980

3.40%

3.25%

33/4%

1978-1980

3.85%

3.70%

Aiith., Gtd.__
(State)
Pennsylvania (State)
Vermont (State)
New Housing Auth. (N. Y., N. Y.)
Los Angeles, Calif._
Baltimore, Md
Cincinnati, Ohio
___

__________

New York City, N. Y
November

-3.50%
1974-19751 3.25%

3V4%

New Orleans. La

Chicago, 111.

25, 1959

1980

3.40%

3.70%

1980

3.50%

3.30%

1979

3.85%

3.79%

1977

3.95%

1980

4.05%

Index

3.80%

3.95%

3.477

view

BOND

QUOTES AND RELATED INFORMATION

(Prices and yields

First Callable Date
(as a whole).

*ssue—

Chelan Co., Wash.
5% 7-1-2013

1-1-1978
.

4%% 1-1-1999...
Chicago Reg. Port

Florida Turnpike Authority

31/4% 4-1-1995

100

ll0i/2

104%

+i%

2,110,000
21,601,000

(*)

5-1-1966

103

95V,

+1A

4-1/,

+ /2

5"49-°,

•*

+»• •'

103%

"■I9S2

103

7-1-1967

103

851/2
105

10-1-1962

103

7-1-1960

104

Bridge Authority

I'aine Turnpike Authority
4% 1-1-1989

r3.30% 5-1-1994....
Port

—

Authority
43^% 10-1-1998...
Rlew Jersey Turnpike
Authority

..........

lead to a postponed,
lesser, demand from

7-1-1988.
New York

3.20%

Power

Kew York Power

OWo^rnpik//Authority
3%% 6-1-1992
6-1-1993...

4-1/,

■

Tuesday's new issues were.,
given a fair reception by in¬
vestors. $10,000,000 State of

1961-1965

8:00 p.m.

1960-1989

Noon

l;iject®5Calif.

Virginia Toll

Rnaiut

3% 9-1-1994

(•) Unchanged.

(*)

4 57%

4-11/,

5-1-1962

103i/2

83%

4-11/,

4 54<>.

1031/2

-3k

n 6Qo-

1-1-1963

103

4-l/?

3 93°'

+«'•

4.07%

1031/2
IfH

■

101

^
M-1959
9-1-1959

■

•

3.»3,-o

<*>

3.83%

oci/

4
6-1-1959

I03'/2

821/2

4.01

4
11/

The

were

bonds

3.90'/

were

about

a.m.

8:00 p.m.

1962-1979

2:30 p.m.

Sewerage
Authority, N. J.
North Hempstead
Union

7:30 p/m.

(Tuesday)

-1,975,00*0

1961-1980

1,875,000

1960-1989

7,705,000
Free^

Noon3:00 p.m.

•

1967-1998

Noon

School District No. 6, N. Y."1,162,000'
Pearl River Valley Water Supply

District, Miss._

pur¬

were

(Commonwealth of)__

December 9

1960-1979

4.400,000

1964-1999

20,000,000

1960-1979

2:00 p.m.
10:00

a.m.

Wednesday)

California

(State of)100,000,000
Chicago Board of Education, 111—
10,000,000

1961-1985

10:00

1962-1979

10:00

La Fourche Parish, La._'_1,000,000
Monfort Heights Local School
-

1961-1980

District, Ohio
Metropolitan
Utilities
District, N^b.
Wabash, Ind.____^ 1 _________2_%__

a.m.

10:00

1960-1989
<

•

a.m.

1,250,000

__________________

Omaha

about

and

awarded

Wisconsin

University
Corporation, Wis.—

Noon

1,500,000

"1961-1965

10:30

a.m.

2,450,000

1962-1996

-1:00

p.m.

yield. The
$3,500,000

balance
at

this

the

Bank,

4.43%

York

3.85%

(»)

377%

SV *

Trust

Fla.

Chase
Chemical

Trust

Bank

December 14

&
Savings Bank-Ladenburg, Thalmann & Com¬
pany - Philadelphia
National

December 15
Fairfield

Local

Los Angeles

D..

Ohio

County, Calif

5,270,000

1960-1997

10:00a.m.

(Friday)
1962-1999

9:00

1961-1972

a.m.

11:00 a.m.

(Monday)
1,500,000

1960-1994

2,000,000

1960-1979

7:30 p.m.
-

10:00

a.m.

(Tuesday)
1,493,000

1961-1982

Noon

2,444,000

1961-1980

9:00

a.m.

(Wednesday)

—

Piqua, Ohio
December 17

1,250,000

1961-1979

10:00 a.m.

3,450,000

1960-1974

Noon

(Thursday)
3,110,000

2:00

p.m.

January 6 Wednesday)
San

New

Company- Harris

7:45 p.m.

2,000,000

Garland Ind. School District, Texas
Port of Portland, Ore."

Midland, Texas

purchased
Manhattan

1961-1980

1,530,000

Development Comm.,

Florida School District No.
(1960-1978)

1,500,000

Regents State Teachers'

Gary, Ind

4.02,»

105

Colleges, Texas
Florida

interesting under¬
writing involves $4,000,000
Escambia County (Pensacola),
bonds

______

Building

December 16

(Thursday)

December 11

the

Another

~H2

104

December 10

Abington Township, Pa

Jose, Calif.:

4,435,000

★In the tabulation of pending sales
indicated
on

11:00

1961-1989

Vvritinff.

i.M7o

7-1-1958

6-1-1959

others.

3.80%

4 23*

+u/.

•

a.m.

1,725,000

scale terminated in 1983 with

4.23 4

^ /4

7'1'U6°

(1961-1980)

by Halsey, Stuart &
Company-Smith, Barney &
Company-Blyth & CompanyGlore, Forgan & CompanyHarriman
Ripley &
Com¬
pany-Sterne, Agee & Leach

>«»

10:00

3,800,000

County, Okla.__!___

Board

4 oo°'

+ /2

Noon

Tulsa

Puerto Rico

Highway Authority

CompanyCompanySmith, Barney & CompanyHarriman Ripley & Company
group.
The normal coupon

103

a.m.

1962-1999

Halsey, Stuart &
White,
Weld
&

3 87°'

.3.0//o

843k

9:30

bonds

4 87%

104

Pichmond-Petersburg Turnpike
TriOam

397-

Pennsylvania Turnpike Authority
3.10%

«»

+1/,-

Authority

Jhnmay Authority

p.m.

1961-1975

December 8

Financing

$4,000,000 remains in account
on Nov. 25.
$6,800,000 Ports¬
mouth, Virginia (1961-1985)

+«

1-1-1958

Authority

1-1-1995.......

7:30

2,500,000

Delaware,vOhio
Endicott, N. Y.___-__i__:._____„_

-•<

Recent

scaled

s 49°

104

a.m.
a.m.

1,215,000

Middlesex County

and

4 ngo

4'09

3.97.0

108

10-1-1969

11:00
11:00

1070'

1-1-1964

fciassachusetts Turnpike Authority
Massachusetts

4 24%

4./4,0

+/2

—

•

(»)

104%

7-1-1994

448

951/,

4 48o'

103i/2

1-1-1965

Turnpike Authority
■3%% 10-1-1994
Kentucky Turnpike Authority

103i/2

Kansas

3.40%

Yield

Maturity

442%

Highway

a.m.

129, 111— "
McKeesport School District, Pa.__

Kane Co., Sch. Dist. No.

increases,

investors.

bonds

4-1-1962

i&lttife

I'ackmac

-r*

—

106

Highway

1-1-1995

41/.% 7-1-1992

Net Changes'
from Prev. Week

No. 2

3%% 11-1-2005

Toll

Price

1-1-1974
7-1-1962

Grant Co., Wash. PUD

,3%%

Offering

Price

4% 7-1-1995

Iiiir.ois

Call

circum¬

chased

approximate)

PUD No. 1

Chicago-O'Hare Airport

Illinois Toll

are

a.m.

11:00

(Commonwealth of)

may

not

Alabama
DOLLAR

the

Further

however, in the street inven¬

3.55%

3*/2%
3V4%
3^4%

—

a.m.

10:00

1959-1999

by
Willoughby-Eastlake • City School
'
■
Washington PUD No. 1 5s, tary of the Treasury Morgen- many dealers in the current
District, Ohio
1,200,000
1961-1975
July 1, 2013; Chicago-O'Hare thau made gestures con- competitive market to antici¬
December 4 (Wednesday)
Airport 4%is, Jan. 1, 1999; sidered economically and pate demand, in order to pur¬ Kentucky (State of)—____—
2,500,000
1961-1985
chase large issues. The more
December 7 (Monday)
difficult selling effort is per¬
MARKET ON REPRESENTATIVE SERIAL ISSUES
Bowling Green -State University,
Rate
Maturity
Bid
Asked
haps to be considered well
Ohio
Connecticut

a.m.

(Thursday)

ke.t disturbances. Issues in de- ously
this

9:00

11:00

11:30a.m.

_________

—

mand

a.m.,

1:00 p.m.

Jan.

that

Karcher,

Sayreville
additional

Sayreville,

This

the

brochure
for

given in the Nov. 19 issue it

was

also

N. J.,

planned an additional offering of $4,435,000 bonds
Actually, as noted by Borough Attorney Joseph
pertaining to the $1,120,000 water bends to be sold by

incorrect.

was

Dec.

bonds

contains

2
a

minimum

assurances

period

the Borough will
months.—EDITOR.

that

six

not

offer

any

■

Volume 190

Number

5902

The Commercial and Financial Chronicle

(2199)

NEW ISSUE

$24,780,000

City of Philadelphia, Pennsylvania
4M%, Si%, 3H% and 1% Bonds
Dated December 10, 1959

•

Coupon bonds in the denomination
f

payment

►.

•'

Due July 1, 1961 to 1990, inclusive

sliown below

registrable-as to principal only. Principal and semi-annual interest (payable January 1 and July 1, but the first interest
July 1,1960, will be for six and one-half mdnths) will be payable at the office of the City's fiscal agent, The
- Philadelphia National Bank, Philadelphia, Pennsylvania, Non-callable.

■

of $1,000,

■

Legal investment, in

opinion, for Savings Banks and Trust Funds in Pennsylvania and New York.

our

Interest exempt, in the

opinion of counsel, from Federal Income Taxes under existing law.

Principal and interest payable without deduction for any tax or taxes, except gift, succession or inheritance taxes, which the City of Philadelphia may be
required to
;
i ■
or retain therefrom under or pursuant to any present or f uture law of the Commonwealth of Pennsylvania, all of which taxes,
except as above provided, the City of Philadelphia assumes and agrees to pay.

pay

thereon

•1

•#

' '

» ■

These Bonds, authorized for

municipal improvements as set forth in the enabling ordinance, will, in the opinion of counsel, constitute
valid and legally
binding general obligations of the City of Philadelphia, Pennsylvania, and the City will be obligated to levy ad valorem
taxes upon the taxable
property—including real property—within the said City, without limitation as to rate or amount, sufficient to
pay the principal of said Bonds when due and the interest thereon.

offer these bonds, if,

and when issued and delivered to us, and subject to an unqualified approving joint legal opinion by our bond counsel,
Towhsend, Elliott & Mini son and Messrs. Dilworth, Paxson, Kalish, Kohn & Dillcs, Philadelphia, Pa.

Messrs.

Interest
Amount

■

Interest

Pate

Due

Yield

434%

19G1

826,000

820,000

820,000 1

43-2

820,000

4^2

820,000

5820,000

Interest

Amount

Rate

Due

Yield

2.90%

$826,000

4/12%

1971

3.50%

1962

3.00

4)^

1972

3.55

826,000

1903

3.10

820,000

43^

1973

3.55

826,000

1904 '

3.20

826,000

4 XA

1974

3.60

1905

3.25

820,000

434

1975

3.60

4 J4

1900

3.30

826,000

4 Yi

1970

1907

3.35

826,000

4 Yi

1977

820,000

4 y<i

1978

3170

820,000

1979

3.70

1980

3,70

820,000

434

1908

3.40

820,000

43^

1909

3.45

820,000

1970

3.50

■'

•

820,000

•

826,000
'■

It is

Drexel & Co.

expected that definitive bonds,

$826,000

Due

3M%

1981

Price

3.70%
100

1983

100

826,000

1984

100

826,000

1985

100

3.65

826,000

1986

3.80

3.65

826,000

1987

3.80 ~

820,000

1988

3.80

826,000

1989

4.25

820,000

1990

4.25

•

(accrued interest to be added)

on or

about December 16, 1959.

Chemical .Bank New York Trust Company

Morgan Guaranty Trust Company

•

OF NEW YOItK

Eastman Dillon, Union Securities & Co.

Ladenburg, TiiaLmann & Co.

■

Yield

Rate

1982

described above, will be available for delivery

Tiie Chase Manhattan Bank

The First Boston Corporation

Amount

Wertiieim & Co.

White, Weld & Co.

Carl M. Loeb, Riioades & Co.

W. II. Morton & Co.

Lee Higginson Corporation

•

Seattle-First National Bank

Hemphill, Noyes & Co.

;

•.

INCORPORATED

A. C. Allyn

and

Company

Dominion & Dominick

INCORPORATED

The Marine. Trust Company

F. S. Moseley & Co.

Sciioellkopf, IIutton & Pomeroy, Inc.

A. G. Becker & Co.

OF WESTERN NEW YORK

INCORPORATED

W. E. IIutton & Co.

Ira IIaupt & Co.

Spencer Trask & Co.

R. S. Dickson & Co.

Baxter & Company

Siiearson, IIammill & Co.

Auchincloss, Parker & Redpatii

Fitzpatrick, Sullivan & Co.

Reynolds & Co.

J. A. IIogle & Co.

INCORPORATED

Coffin & Burr

Trust Company

Georgia

Ernst & Company

R. II. Moulton & Company

A. M. Kidder &

Co., Inc.

INCORPORATED
...

Geo. B. Gibbons & Company

James A. Andrews & Co.
"*

INCORPORATED

Yarnall, Riddle & Co.
November 23, 1959.

\ .*'2

•

).<>( i

..J

Wood, Gundy & Co., Inc.

Sciiaffer, Necker & Co.

■

Rand & Co.

INCORPORATED

•

.'I

The Commercial and Financial Chronicle

(2200)

Chase

DEALER-BROKER

Manhattan

Bank—Analysis—Hill

South Spring Street, Los
Bank New York

Trust

Co.,

AND RECOMMENDATIONS

COMING

Food Machinery

Crane

Co.

Opper.heimer & Co., 25 Broad

—

Street, New York 4, N. Y.
Eagle Food Centers

Monthly Investment Letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
in

current Foreign

Canadian Business

—

York

Erie

Bank of

—

Montreal, Montreal,

Canada.

Also

•

•..

•

Jan.

Securities—Comparative figures on 12 companies—Hardy
Co., 30 Broad Street, New York 4, N. Y..
•
j •

•Ellis

sociation

Texas

5,- N. Y.

••"Inc.

Corporation—Analysis—Baieman, Eichler

data

same

& Co.,

120

circular

are

Motors—Memorandum—Wfn. C. Honey & Co., Buhl
Building, Detroit 26, Mich.
American Sterilizer Co.—Memorandum—Fulton
Reid & Co.,
Inc., Union Commerce Building, Cleveland 14, Ohio.

Co.—Memorandum—Goodbody
Y.

Also available

are

& Co., 2

Asso¬

Co.

are

•

Foods—Analysis—Bache
5> N. Y. Also available is

Boston

Edison
York

reports

Co.,

Ill

—

Bulletin

Inc., 14 Wall Street/New' York
City, including two Directors and

circular

are

data

Libbey Owens Ford and Pittston Co.
Burlington Industries, Inc. —
Analysis—Reynolds & Co., 120
Broadway, New York 5, N. Y. Also available are
analyses
of McGraw-Edison
Company and American Zinc, Lead &
Smelting Co.

Carter Products Inc.

—

Memorandum

—

Schirmer, Atherton &

Co., 50 Congress Street, Boston
9, Mass.
Also available are
memoranda on Sanborn Co. and
Standard Oil of New Jersey.
Central Transformer
Corporation—Analysis—Eppler, Guerin &
Turner, Inc., Fidelity Union Life
Building, Dallas 1, Texas.

York

John
Director

elected

Conley and Edward
New York; John R.
Beckett, San Francisco, and Rich¬
ard
M. Link, Los Angeles, were
elected to the company's Board of
Directors. They are all Vice-Pres¬

Amphenol Borg Electronics Corp., Kansas
Co., and Motor Wheel Corp.
Corporation of America—Report—The Milwaukee

idents.
The

Exempt

Department; Adolf K. Eitner, Los
Angeles; William T. Patten, Seat¬

Hutzler-R.

(1960-1989) are up for
bidding. Although compara¬
tively, this is but moderately
heavy volume, combined
bond

market

scale to
remain

this

factors

dealers

bidding with

should

approach
more

cau¬

(b) Natural Gas Companies

Heavy Calendar Ahead

Transmission, Production

With
of

gradual accrual
inventory, next week's new

important

dealers.

in¬

Trinity Place, New

HAnover 2-2100

$21,500,000 Los An¬
geles, * California School Dis¬
trict

bonds;
$10,000,000
Columbus, Ohio bonds; $10,000,000

York 6, N. Y.

Teletype NY 376; 377; 378

Montgomery,

bama Water and Service
tem

Revenue

$15,000,000

bonds;

Salt

River

ject Arizona bonds,

all

Ala¬
Sys¬
and

has main offices in New

York and San Francisco and oper¬

ates branches

Formed in N.Y.C.
Announcement is made of the for¬
mation

Frank

City,

Schapiro
Names Mackey

in 22 other cities.

Frank Sassa Co.

in the

past

investment

Inc.,
^

York

the

Van Arsdale,

founded in 1914. The

was

during

Sassa

Company

Broadway, New

engage

principally

trading of over-the-counter

securities. Mr. Sassa was formerly*
in the

trading department of Ger-

stcn

Frenkel.

•
For the

MUNICIPAL

BONDS

Asst. Vice-Pres..

WEST VIRGINIA

cludes

Co.,

bankers,

tion than has been necessary

M. A.

the

issue Calendar becomes

Security Dealers Association

Angeles.

offices

to press.

Troster, Singer & Co.

and Nieland B

Los

with

few weeks.
There appear to be no
negoti¬
par. About $3,000,000
ated
type
underwritings
in account as we
go
ready for marketing.

bonds and offered them

Members New York

tle,

Blyth

bonds

City Bank, Salomon

are:

Miller, of the New York Buying

Monday-Tuesday

cause

& Distribution

Vice-Presidents

new

Robert E. Leslie and Frederick L.

(11/30
and 12/1/59). On
Wednesday,
$21,601,000 Massachusetts

Pressprich group bought $4,550,000
Providence, Rhode
Island
(1962-1981) 3.80%

(a) Operating Utilities

Paul

Glassmeyer,

company

Brothers

in-

member of the Executive

Committee.

Walnut

Tax

the

Inglis, San Francisco, a
and Vice-President, was

National

Trading Markets

Chairman

Leib,

New

Board.

ing

the

been'made

has

office,

George

Salle

Continued from page 6

Firm

Vice-Presidents/in

two

—

Inc., 433

numb'er of

Broadway,

same

ir" ;' Y

executive elections at Blyth & Co.,

Broadway,

Swasey Company—Analysis—Scliweickart &
Co., 29
Broadway, New York 6, N. Y.
Whirlpool Corporation—Study—Vilas &
Hickey, 26 Broadway,
New York 4, N. Y. Also available is a
report on Maytag Co.
Wurlitzer Company — Report — Leason &
Co., Inc., 39 South
,La Salle Street, Chicago
3, 111.

Co., 36 Wall Street, New

Also in the

Announces Elec.

Company, 207 East Michigan Street, Milwaukee 2, Wis.
Vendo Co.—Memorandum—A: C.
Allyn & Co., 122 South La
Salle Street, Chicago 3, 111.

review of current business.
Co.—Survey—Abraham & Co., 120

5, NaY.

vt% l:

The announcement of

•

Warner &

Beatrice

New

South La

Vanadium

& McDowell,

Also available

Haupt &

Power & LigJtit

Cooper Tire & Rubber Co. and
Moore-Handley Hardware

York

Co.—-Review—Ira

memoranda

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

Instrument Companies—Report—H.
Hentz & Co., 72
Street, New York 5, N. Y.
Also available is a report
on Botany Industries,
Inc., a bulletin on West Penn Electric,
Delaware Power & Light and Consolidated Natural
Gas, and

■

Inc.—Review—Straus, Blosser

■,

Wall

Transport, Inc., Consumers Power Co., Eastman Kodak
Co., and Pittston Co.
111

Penney

■

Taylor

Broadway,

memoranda

Blyth & Co., Inc.

Paper Co.—Memorandum—Dean Witter &
Co., 14
Street, New York 5, N. Y,
Schering Corp.—Analysis—Blair & Co., Incorporated, 20 Broad
Street, New York 5, N. Y.

ciated

Assembly Products,

■

Street, Chicago 3, 111.
Swank, Inc.—Report—H. A. Riccke & Co.,
Street, Philadelphia 2, Pa.

McNeill & Libby.

New York 4, N.

Regis

American

Anaconda

the

Weil Ik Co., 734 Fifteenth
Street,
N. W., Washington 5, D. C.
Susquehanna Corporation—Analysis—Wm. H.
Tegtmeyer & Co.,

Standard Coil Products, A. S. R.
Products, and Libby,

Servonics, Inc.

Also in the

•*

Security Dealers As¬

Hotel Biltmore.

Wall

•

Arm—Data—Montgomery, Scott

meeting

•

New York 6, N. Y.
St.

$7; combined monthly, and quarterly editions, $40—Traders
Graphic, 1970 Broadway, New York 38, N. Y.

Broadway, New York 5, N. Y.

edition,

American Bosch

annual

„

Traders Graphic—Analytical- monthly for security dealers and
financial institutions—annual
subscription,'monthly

•

Tex.)

Investment

Co., Inc.,

Organization, Inc., 120 Broadway, New York 5, N. Y. \
Coal—Report—'Thomson & McKinnon, 2 Broadway,
New York 4, N. Yr Also available is a
report on Hueblein,

Publishing/Industry—Analysis—A. M. Kidder & Co.,

♦

(Dallas,

sociation 34th annual dinner in
the
Grand
Ballroom % of
the

Peabody

Also available is

1960

Group

New York

National Quotation Bureau, Inc., 46 Front
Street, New York
4, N. Y.
"/' - ■ ■ ■
'
■

1 Wall Street, New York 5, N. Y.
report on Chrysler Corp.

annual Mid-Win-

25th

(April 8, 1960 (New York City)

Co., 453 South Spring Street, Los Angeles 13, Calif. '
'
V
Pacific Vegetable Oil Corporation—Bulletin—De Witt Conklin

Inc.,

(Baltimore, Md.)

Sheraton Dallas.

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau
Averages, both as to
yield and market performance over a 20 - year period—

Textbook

New

Bankers Association of America

Ltd.—memorandum—Green;

International Packers Ltd.—Memorandum—Walston &
r
74 Wall Street, New York

Dinner

Security Traders As¬

6-7-8,

April

analysis of

Annual

Dinner.

ter

Anderson, 61 Broadway, New York 6, N. Y.

Norris Thermador

15, 1960

25th

International Nickel Co. of Canada

Association

Ninth

Baltimore

Harvester—Analysis—Steiner,
,

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the Dow-

-■

Corporation, and

Rouse & Com¬
pany, 19 Rector Street, New York 6, N. Y.
Also available
is an analysis of St. Regis Paper*
•
•
<
•
.• '

Ill Broadway, New York 7,

the

Starlight Roof, Waldorf-Astoria.

Mead Corp.

Olin Mathieson Chemical

International

—

;

15, 1959 (New York City)

Investment
York

Stone Container Corporation.

Heavy Industries, Nippon Flour Mills Co., Iwaki
a survey of the Steel
Industry.
Japanese Stocks—Current Information
Yamaichi Securities
York.

Dec.

News Letter, 414 Mason
Street, San Francisco 2, Calif. (35p per copy).
Company — Analysis — Hayden, Stone & Co., 25
Broad Street, New York 5, N. Y. Also available is a bulletin

Mitsubishi

New

Americana Hotel.

If. J. Heinz

review of the outlook for Plant and
Equipment
in
Japan for 1959 and brief analyses of

Company of New York, Inc.,

memorandum

Convention

Annual

Ilarvill Corporation—Report—North's

Cement Co. and

Oil

—

Tire and Rubber Company—Analysis—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y.

Japanese Stock Market—Study of changes in
postwar years—
In current issue of "Nomura's
Investors Beacon"—Nomura
Securities Co., Ltd., 61

Broadway, New York 6, N. Y.

Fla.)
Investment Bankers Association

General

savings in various situations—National Securities & Re¬
Corporation, 120 Broadway, New York 5, N. Y.

4, N. Y.

Railroad

able is

Expenditures

Co.

Corp.—MemQrandum—Hill, Dar¬
lington & Co., 40 Wall Street, New York 5, N. Y. Also avail¬

Oil—Bulletin—Ross, Knowles & Co., Ltd., 25 Ade¬
laide Street, West
Toronto, Ont., Canada.
•
/
How to Make Your Tax
Advantages Count—Suggestions for

available is

Robert D. Baird

—

General Precision Equipment

Canadian

tax

Nov. 29-Dec. 4,1959 (Bal Harbour,

Memorandum

//
Analysis — du Pont, Homsey & Company, 31
Milk Street, Boston 9, Mass.

Letter.,

Review

—

Incorporated, 110. East Wisconsin Avenue, Milwaukee 2, Wis.
Entron, Inc.—Report—Alkow & Co., Inc., 50 Broadway, New

—

FltLD

IN INVESTMENT

& Chemical Corp.

Memorandum

—

EVENTS

Minneapolis 2, Minn.
Corn Products Co.—Memorandum—J. A. Hogle & Co., 40 Wall
Street, New York 5, N. Y. Also available is a memorandum

TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

able

Thursday, November 26, 1959

621

Co.—Memorandum—Merrill

115 South Seventh Street,

wood,

UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

Burnham View

Lynch, Pierce, Fenner & Smith Incorporated, 70 Pine Street,
New York 5, N. Y. Also available are memoranda on Kendall
Co., National Fuel Gas Co. and Penn Fruit Co.
Control Data Corporation—Analysis—Piper, Jaffray & Hop-

INVESTMENT LITERATURE

IT IS

Richards

Angeles 14, Calif.

Chemical

VIRGINIA
,

Paul

pointed

Mackey

has

Assistant

been

ap¬

Vice-Presi¬

dent of M. A.

Dne

Wall

vestment
bank

Shapiro & Co., Inc.,
Street, New York, in¬

bankers

specializing

NORTH

CAROLINA^—*

SOUTH

CAROLIN

coll

stocks, the firm announced.

Mr.

Mackey

financial

Pro¬

Edie

sell¬

visors.

was

analvst

Co.,

Inc.,

formerly

with

Lionel

investment

ad¬

E332SZ3
■RICHMOND, VIRGINIA!

&CO

Volume

190

Number 5902

The Commercial and Financial Chronicle

(2201)

actly the

Common Stock Portfolio

three

With Long-Term Objectives
By Dr. Charles V. Kinter,*Managing Partner, Duff, Anderson &
Clark, Chicago, III.

Experienced Chicago investment adviser lays down divining guides
for the selection of

a long-term portfolio of common stocks to meet
different objectives. Because of uncertainty regarding the Cold War's

that

are
adaptable to quick changes and are in possession of a
growth rate capable of outpacing price inflation and any narrowing
of price times
earnings ratios. The author lists areas of change apt

for in

and to

provide

construction

jectives requires both
and

review

happened

the

common

long term oblook for-

what

postwar

The perusal of the past is
animation

the

ex-

in-

records

dividual companies and the
parative

growth

different

moving
ward

has

years,

com-

performance

industries

The look

economy.

fast-

our

for-

requires the marshalling of

every bit of evidence which would

indicate

•

where

the

the
various industries, and the indivieconomy,

dual

companies may be a decade
hence. The selection of stocks for
the

portfolio therefore must be
based both on the record and the
probable

future

far

can

be envisioned.

Contrasting

The formulation of a long term
portfolio of common stocks obviously is no simple task in a world

where
and

•

social, political, economic,
technological changes are tak-

•

ing place with great rapidity

'fact

Investment oCe?;

trust

problem

that

with

For

compounded

investment

each

individual

the
the

goals

vary

account

and

requirement.

every

The trust in-

vestment officer must have

every

possible objective in mind and the

same

stocks

case.

For example

will

not

let

every

look at

two contrasting types of accounts
found in every trust department:

(1)

One is

the widows and

or-

phan variety where the objective
to conserve capital and at the
same time to earn as
large a rate

return

consistent

with

safety of principal
(2)

contrasting

count is that of

who has

nessman

type

ac-

well-to-do busi-

large salaried
or partnership income.
He is interested primarily in capital gains
and is willing to accept almost any^
a

with

good bonds.

holdings

where

other

appreciation

contrasting

widely.

might

example,

Standard
+

nil

the

vary

Cab-

Atir'n

n vi

widow's

the

use

Company

rnrt

for

these

industry

might

Oil

+am

fornia

waiVm
would

situations:

Taking the

use

r\v

and

might

man, we

leum

Pubco Petro-

use

Tidewater Oil. We prob-

ably would

use

food stock for the

widow's and orphan's account; but

these,

general

principal,

might not have enough growth for
the

businessman.

In order to make my

helpful
to

discuss

for every

the

remarks

selection

stocks

inator
trust

to be

for

trust

company

appreciation at

—

department
namely,

fields

onrl

combination

direction

from

their

relatively
less
important.
the
longer term implica-

come

tions

would

be important,

the

rising

popula-

stocks

common

deflation

might be

problem

much

inflation.

nnnnoeoriKr

While

case.

durable companies should do

mrnmr

would

commons

Suggests
»„

available at

a lower price times
earnings ratio and a higher yield,

(2) Another thesis, almost the
opposite of the first, is based on
Stocks ni general are now selling the premise that any thaw in the
at price times earnings ratios, Cold War is only temporary. Inwhich probably are higher than stead, the United .States must face

will prove to be normal

over

the

all-out

struggle

for

maintenance,

of these stocks will

some

seem low in-

would

remain.
Victory in this
titanic struggle wdl require sucn
large and persistent defense expendicures, whether shooting ac-

deed a decade hence. The trust
investment officer naturally must
discriminate between stocks which tually starts,
present

discounting
the hereafter and those stocks
which will prove to be good long
prices

are

that

inflationary

TI,ni

p
Therefore,

service to

the

owner.

stead

all inconceivable that

same

time

the average,

the next decade of

higher

not

well within

the life span of most of us here
today a new industrial revolution
will develop. New energy sources
may make advantageous the rebuilding, re-equipping, and even
the relocation of many plants,
(3) New competition will arise
for established goods due to the
tireless efforts of researchers who
develop new and better products.
We all know numerous examples
of this, and almost certainly it will

favorable long term prospects af-

^/example
there^^the
f
iS"?

^ocks

material

raw

What

of^er

can

the

over

the
to

trust

nrotect

eventualitv in

the
1110

vS of
fuYure
11111110

"j-S;

enough both to outpace

decli^e

the value of

d to offset
t

m_v

™

rauis Th"s fs

nnnrc*

our

™

-n

tll0y Will

HOW,

9frtain1ly
aPPears
llBV6 lSFgOr FG3l

anv

bifiTr-

oc«oniaii-.?

evlry

in almost

indus-

?etin^start toTuaTrerwit^Lch
other instead of with the West

"»w«*u.u*jnam uic unu

Py.way of further comment

win

fixed-income

securities,

This announcement is not
..

Zl*clrtL& compan^aSf ^
(7) The people of the underdeVJL

veloped countries will refuse to
standards.

Either

their

?tan^ar^s
will improve,
.ahead. Better

(1)
in

Obsolescence will be great

most

industries

because

technological

progress

ojjer oj securities jor sale
■

or a

ties.^

(8) Economic conditions will
Continued

solicitation oj

•

ojjer to buy securities.
V.

•

November

24, 1959

$15,000,000

Potomac Electric Power Company

disputes have halted

will

change for

a number of raw matewithin
the
next
decade

First

Mortgage Bonds, SV4% Series due 1994

therefore, investment opportunities

exist>

appear

unfavorable present
the

companies

are

now

the

situation, be-

stocks of

common

jject (j,e uncertain

despite

Price 102.436%

such

priced to

plus accrued interest, if

re.

any,

from December 1, 1959

term out-

near

j00]ts jor these

coujd

provide

raw

materials. We

numerous

other

may be obtained jrom such oj the undersigned (who are
the underwriters named in the prospectus) as may legally ojjer

Copies oj the prospectus

ex-

these securities under applicable securities

amples> but the point is that the

laws.

jQng term common stock portfolio
must be

adapted t0 conditions the

Dillon, Read & Co. Inc.

Johnston, Lemon & Co.

prevail in the future rather than

they

are

this

particuiar

mo.

Auchincloss, Parker & Redpath

Alex. Brown & Sons

ment

Three Stock Selection Views
In my travels around the

try,

I talk

large

people

proper

investment

have

developing.

Fleming-W. B. Hibbs & Co., Inc.

Carl M. Loeb, Rhoades & Co.

L F. Rothschild & Co.

Baker, Weeks & Co.

W. C.

Langley & Co.

Riter & Co.

the

E. W. Clark & Co.

Ferris & Company

Jones, Kreeger & Co.

Mackall & Coe

policy,

There appears to be three diverse
concepts

Nolan,

coun-

number of

and

Folger,

Unfortu-

nately, these do not suggest ex-

living

or trouble

living standards

enter into the thinking of in such backward, countries will
the trust investment officer:
>
create new investment
opportuni-

New Issue

terials labor
are in oversupply, except

remain backward in their living

some of the areas of change whicl:

°arelatl0n be"

twe?.n more people and more pros"Slng
bon should be given weight m

irresistible, should

proper investment pol-

^"cT

w,al JS t
JF*
encin? this not onlv \n Wten
areafbut wi£
nn.mS
from f<meS ^hufarhi?P^
^
manufacturers,
* *
*TG
be more Amen-

dollar

spectacular changes which

0CcSr

wiU

thl

narrowing which

„f_ y f

inas

Hpr

anv

wnria

strone
and* RerhfPs ^7
a™°?g' fu??yluU?le®s.„carf.fully.
l™£bSi< ® ?mg f1Vei\ ^5? ?!lph

growth will be
a

™

fpniS^n
hnSniqf

incomes and therefore wilL proYlde "Jv,iting new markets. This

producers

situation

nnH

wldch will be

divereenrcou^ses
QlVCrg0iH COlirS0S

Xxl0

sellim?advantage in competi.

behierniwt

investment

afrai®t ™

®tocks^^w^terial producers
This

sa^now

decadg

5 avrSS thl mmlnn

time

can

costs of naass communication medj a,
® big firms will have an
tive

haw

one

Also, careful attention must be Any easing back of stock prices rapid
given to companies and industries
which currently are unfashionable
with investors but which have

Principle

varlathW
tetSt ribpiw's

ne°"tto

term. values soon enough to be of icy is to keep buying stacks in-

capital investment

purehas-

limita-

tuOCQ

inHivirlnni

survival

next decade; and most of the bet- with the Soviet Union. Investment

Selection

+uVOQ

par-

y well.

highly favorable,

a period of economic
uncertainty
would prevail during the readjustment period. Over the near term,

Imxr

faster rate than privilege of hearing their thoughts

ing power and at the
over

denom-

common

the dollar will decline in

the

beginning

industries.

many

the

possible type of portfolio.

Rather, I shall have in mind what
appears

some

trust investment officer expects to

possible, I shall not try

least

middle 1960s, the United States
will have its really Golden Era
of economic prosperity based on

and

or-

For the business-

that>

and

struggle for

may

cause

phan's account.

attractive after the readjustment
dividend increases, period, they possibly can be purfar greater than for an chased at more attractive prices
alternate investment opportunity than pie vail now.

ciation

Productlon.

enougn.

excellence

some

imposed by geography

now

overpopulated and

possibilities while

-rotirk

oarnvncrc

where

basis

Corporate
earnings temporarily would be depast standards. We all know that pressed. The current price times
it is sound at times to purchase earnings ratios of many stocks ala stock
selling at a high price most certainly would be narrowed,

dustries

ds a

technical

remove

tions

poor

are unusually favorable.
This brings up one more troublesome problem, which must be resolved early in a discussion of this
kind particularly under present
conditions when common stocks
appear to be high priced by most

large
w^rdTareYarg^e^u^^^
^

own

"one ••portfolio "precisely""fits the current prices of at least

cost

out

areas,

The ultimate rate of return,
resulting from both capital appre-

Objectives

yield.
Two

West

will

bfho1^ pa^^ar

iimoc

energy,

War win continue about as we
have known it in recent years and
therefore attention can be focused
istence.
He
may
be completely on the tyPe of civilian economy
confident in the ability of the So- we wlU have during the 1960s,
viet Union to compete. with the Here
is generally presumed

resource- general
will do well because of gain in momentum due to incountry. Whatever the rea- hlgher - earnings
and
dividends, creased appreciation and dedicasori,' it may be that the West has Th6 * acceptance
of
this
thesis tion to research in modern indusrate of return on the increasing less to fear from the
standpoint of would suggest the ownership of a try.
principal than can be obtained on Soviet military aggression than large percentage of commons in a
(4) Competition also will be infixed-income securities of * high appeared likely in the recent past, portfolio, but with concentration tensified by improved
transportaquality. A portfolio fulfilling this
If this thesis is correct
the on the companies and industries tion and communications. Overrequirement should include a good United States
particularly, but the
m P°ints aTuSS
hard core of fairly stable, good other Western nations as
well, beneficiaries of the type of econ- the continent, or even from other
growth groups, such, as electric faces a
period of readjustment. omy we would have then. For ex- continents,
will be even more
utilities. It then can be filled out Defense expenditures would be- j1*1 ui'
building and consumei common. Because of the rising

higher yield than can be obtained

follows:

tlon in the high spending age
depopulated and resource rich brackets and • much higher pei
Siberia against the hordes of capita real income.
While selecChinese who inevitably will spill tivity as always will continue to

attributes to look

likely to be growth leaders in their respective

stock portfolio with
ward

summarized

(1) One is based on the premise
that Mr. Khrushchev is sincere in
his proposals for peaceful coex-

recognize that Mr. Khrushchev
knows he may have to defend un-

appraising values. Further, he furnishes examples of companies

and industries

The

well

would be merely viewed as an
providing better equipment and
opportunity to step-up buying.
methods.
(3) The third approach for the
(2) New forms of energy, such
most part assumes that the Cold as the fuel cell or
atomic

stocks. These

views, much oversimplified,

can

policy in regard to

common

economic influence and power. It
would be naive,
however, not to

outcome, Dr. Kinter suggests those firms and industries be selected

to occur that should also be considered

same

selection of

Robinson and Lukens

Rouse, Brewer, Becker & Bryant

os-

page

The Commercial and Financial Chronicle

(2202)

rule

of open

losses.
If he takes both
the net result is zero.
If he takes the $2,000 losses in

in 1959,

Income Tax Pointers

Securities

that no loss will
a
sale, if within

says
on

days before or after the sale
the same security is bought. This

1959 and the

For Today's

that

allowed

....

$2,000 profits in 1960,
he is ahead of the game by a $500 is known as a wash sale. The tax
deduction.
It is figured in this effect is as if the sale never took
way: For 1959, the $2,000 losses place.
give him a $1,000 deduction and
The disallowance applies to a
$1,000 to carry forward into 1960. purchase not only of tne snme se¬
This $1,000 is applied against the
curity, rbut also of substantially
<

By J. S. Seidman, C. P. A.,* Seidmun & Seidmun,

Tax pointers on capital gains for individual and corporate investors,
some of which are applicable to both and others are definitely not,
range from the warning that the latest day for profits-taking for
l inclusion in 1959 returns is Dec. 24 to how to convert dividends
and interest into capital gains.
In addition, Mr. Seidman covers

New York City

identical
chase of

the

1960

$500,
is
reportable. .1 Johes, •,
therefore, has a $1,000 reduction',
in 1959 and $500 income in; 1960,
or a net deduction for both years
or

such other tax savings explanations as: keeping careful watch on
the six-month line on losses to make sure they offset the heaviest
taxed profit; spacing profits and losses between years} and taking
advantage of short sales, and how to treat wash sales. Above all,
alertness throughout and not at the end of the year is stressed.

of over-six-month, profits

1960, making a net profit for
of $1,000, one-half of which,

$2jOOO

securities.

sale, of

Accordingly,
and the

stock

pur¬

voting trust-certificate
stock, or vice-versa
under the ban-.
However, the

the;

same

Thursday, November 26, 1959

profits. If there are no security
profits in'the five year period, no
tax

benefit

losses.
'

the

derived

case

mention

made

was

from

individual,

the

ability

income

in favor of capital

the

minimizing

desir¬

dividend
gains.

corporation, however, is better

off with dividends than;
any

other
type of-taxable, income, even in¬
cluding capital gains. That is be¬
cause they generally
.pay less than
8 % tax on dividend-income.
\
;. Accordingly,,.while in the case

of 4ndividuafs#Jthere is an ;advanis of
•tage im selling stock before the
and- the
dividend date, and buying it back
of $500.
purchase is of stock of another.
Jones' best bet, however,' is to
This.; holds even though the two afterwards, in the case of a cor¬
switch the thing the other way
companies are; in the same line poration it isjust the opposite —
there is an. advantage in
around and take the $2,000 over- of
buying
business, 'r their stock sells at
stock before the dividend date and
Though
1959
has
seen
some loss is deductible, within certain six-mortth profits in 1959 and to. the same price, and moves mar¬
limits.
1
■'
selling afterwards.
take the $2,000 losses in 1960.
By ket-wise in- the same way.
sweeping changes in the Federal
V,#i
To illustrate: Suppose the net
However, <|ui'ck In and out turns
income tax laws, Capital-Gain is
doing this, he reports in 1959 oneare restrained. The stock must be
Of
all
trades
for
1959
is
a
$10,000.
How
to
still
a
half
the
magic word iri Federal
$2,000 profits, or $1,000,
identify Securities Sold

)
j

loss; will

stand

stock

one

if-the

sale

company,

•

i—Mi

The other $9,000

goes in the under-six-month basket for the five

Indi-

simple.

vidualtax
rates

can

years
1960 to 1964, to a p p 1 y
against the first $9,000 of any net
security profits in those years. : If
there
are
no
net- security

Cor¬

91%.

porate rates
can
go
to
52%. But with
a

profits in those years, $1,000 can
be taken as a regular deduction
from other income in each of the

capital gain,
Sam's

Uncle

25%.

S. Seidman

the sale of securities or anything
of

business.

will

than

other

merchandise
Everything here
the

in terms of se¬

be described

curities, but what is said will

be omitted.

security "in¬
different from
the
those who do enough

are

for

to be' a
Only the
investor will be considered here
—first
the
individual
investor,
"trader"

and

"dealer.

the

then

25%

the

investor.

corporate

not

returns,
absorbed by

previously

profits.
Losses

whether under-six-month
The

short

the

closed

short sale until
position
is
actually
on

out.

or over.

tax

savings from losses can
high as 91%. Supoose, for
example, Jones is in the 91%
bracket, and that in 1959 he takes

run

reported

Here is how the shift is accom¬

always figured in full

are

under-six-month profit.
His tax on that $1,000 will be $910.
$1,000

make

his

tificates,
whether

selection

own

and

have

plished: Jones has in his box 100
shares of stock that he bought in
August 1959 at 60. In December
1959, or four month later, the
market is 85.
He is leery about
to freeze

wants
He

the

future

the

goes

market

and

the $2,500

;

The

he can
profit

control

loss.

holds

result

good if
he instructs his broker at the time
same

the

sell

block..
trol.

•

whether

sale

the

1957

His
.

he wants

block

instructions

the

1958

will

con¬

nothing, and the cer¬
tificates cannot be identified, the
rule is that the

wipe out the $910 tax.
In other
words, the $1,000 loss saves Jones
$910, or 91% in tax.

1957 block is sold

bought first.

was

penses

Are Treated

Purchase
ditions
and

commissions
the

cost

are

ad¬

securities,

sales commissions are deduc¬
from their sales price. Com¬

Watching

the

Six

Month

obvious advantage

went

same

stock

when

because

the

covers,

profit,

short

less

for

If when he went

than six months.
short

Jones

under-six-month

owned

on
;

eral transfer taxes

when

matter

the

owned

stock

deductible

are

trader in securities. Whether

this also applies to an investor is
uncertain.
It is an advantage to have a
regular deduction because it can
mean

91%

saving

tax.

in taking profits after a six-month
reduction of profit or an increase
than six months, the profit on the
Security profits and losses go in
in loss on a trade, the tax effect
holding. The tax rate then ranges
one of two baskets, based on the
close-out of the short position is
from as little as 10% to a maxi¬
is limited to the tax rate that
length of time the securities are mum
an over-six-month profit.
of 25%.
Before six months,
applies to the profit or loss.
owned. Six months in the divid¬

ing

Profits

line.

losses

and

securities held for

on
than six

months

(here
called
over-sixmonth profits) go in one basket.
and

Profits
held

months

six

called under
go

losses

six

securities

less

(here

month profits)

into the second basket.

Each basket is taxed differently.
If there is a net profit in one

basket and
the two

are

net loss in the other,
netted. If this leaves

net

profit in the Under-sixmonth basket, that profit is re¬
portable in full, in the regular
way.
If it leaves a net profit in
the over-six-month basket, there
is a two-way play, whichever
gives the lower tax: (1) a flat tax
of 25% of the profit, or (2) re¬
porting half the profit in the
regular way.

The 25%

limit

the tax be¬

meaningful to the individ¬
uals with the regular income of
more
than $18,000.
That figure
becomes $36,000 if husband and
wife are involved, and they file
a combined return.
People with
lower incomes pay less than 25%
on over six-month profits. In
fact,
the tax on those profits can get
comes

low

profits
means

10% since only half the
need be reported, which
half the lowest tax bracket
as

the range is from 20% to 91%.
The

six-month

line also

If the net results of the under-

six-month

basket

show

what

basket

loss,

and

taken

over-

together
regardless of
comes from the

then
it

the

Convert

Dividends

and

Capital Gains

Interest

debit balance in

He also has

loss

open

month

with

$2,000

profits.
the

That

$2,000

newly

leaves him

under-six-

month profits to report.
taken
his
loss before

If he had
the

six-

month period had
run, it would
have been applied against the
$2,000

That

under-six-month

would

have

left

brokerages account is deductible,
if it is actually paid to the broker.
The mere interest charge by a
broker is not enough to give the
deduction to anyone who makes
his. return on the basis of cash

him

with

compared with $2,000 of
income the other way

regular
around.
All

this

Yheans

throughout the
the end

quently

To wait until

year.

of the year,

done,

month mark

How

alertness
as

let

may

slip by.

Spacing

Where

•

Between

there

are

month

profits and

month

profits, it" is

is so fre¬
the six-

take losses in

Years

way

pose

which

are

about to be cleaned up.

Timing of Year-End

Year-end

tax

important,

else

item, and

vice-versa.
the

The

interesting rule that to

where' he

tax¬

for tax purposes until the securi¬
ties
sold are
delivered
to
the

the other hand,

deemed to be sustained when
made on the floor of

are

the

exchange,

regardless

time of certificate
As

the

various

the

delivery.
exchanges

in
New York-have a four-businessday delivery rule, the latest day to
take profits for inclusion in 1959
returns is Dec. 24.

Securities sold
ness

■

the next busi¬

day, Dec. 28, will not be de¬

livered until Jan.

4, 1960, and the
therefore be a 1960
Between Dec. 28 and 31,

profit-will
item.

securities

instead

delivery,
still

can

the

and in

sold

for

regular

"cash"

four-day

that way profits

established for 1959.
losses, they can be
taken by sales made
right up to

In the

case

the end of the year.

Hornblower &
Weeks Names'

George Flynn
George T. Flynn, partner in Hornblower & Weeks, 40 Wall Street,
York

New

City,

memb ersof the

e w

York

StocklEx¬

change
and
other leading

Exchanges,
has-

been

elected
member

a
,

Executive

Committee

are

Also, while in the case of in¬
stock-wise, but ahead of the game dividuals, up to $1,000 of net se¬
over
six- by $3,270 tax-wise.
curity losses can be immediately
deducted from other income, no
under-sixback

reporting on the basis of
coming in and going out,
profits are not considered realized
cash

the

special
provisions
$6,000, but it is now in the form that apply only to corporate in¬
of profit from the sale of over-six- vestors. For example, in the case
month stock. His tax on the $6,000 of over-six-month securities, indi¬
is therefore only 25% or $1,500, in¬ vidual investors have the choice
stead of $5,220—a saving of $3,720. of paying 25% of the profit or
If he stilt wants to maintain his reporting one-half the profit as
position in the preferred stock, regular income. Corporate inves¬
he can step right back Into the tors have the choice of paying
market after the. dividend
date '25%"or reporting the full profit
and buy 100 shares.
That puts as regular income.
him

for this is

reason

The Corporate Investor
There

losses,
Timing

transaction

intended to affect 1959 taxes
may
turn out to be a I960

deductions include cost of invest¬

(that' is,

whether

to take profits or establish
is a familiar occurrence.

fees, office expenses, cost of pro¬
selling the stock fessional services for preparing or
the
ex^dividend defending tax returns.

at least four full
business days before the dividend
"record" date), he gets the same
date

Sales

selling,

$5,220.

However, by
160
before

Other¬

corporation is long and short the
same stock on a dividend date.

receives the $6,000 of divi¬ ment advisory services, subscrip¬
dends, he will have to part with tions to investment literature, rent
91% or $5,460, less $240 (4% of of safe
deposit boxes, custodian

$6,000),

days to get

rate goes up to 52%.
With preferred stock
paying back
dividends
of over a
year,
the
holding must be at least 90 days.
The rate is- also up to 52% if. a

If he

profits. at

$2,000 of over-six-month profits,
of which only $1,000 need be re¬
ported (with a maximum tax of

$500),

dividends.

coming in and going out. How¬
to accomplish this: Sup¬ ever, credits to the customers' ac¬
Jones, in the 91% bracket, count for
interest, dividends, and
bought securities.
has 100 shares of over-six-month sales
proceeds on the customer's
If he waits to take the loss un¬
preferred stock that cbsts him securities are the same as so
til after the six-month line has
$100 a share. The stock is now much cash paid by the customer.
been passed,
he must apply it worth $160 a share because of an
Dividends
and
premiums
on
against the $2,000 of over-six- accumulation of $60 of dividends
short sales are deductible.
Other

six-month profits.

Saves Taxes

£ix-month

Interest Into

watching on losses, to make sure
Because of the 25% tax limit on
they offset the heaviest taxed over-six-month
profits, it is nat¬
profits.
For
example,
suppose ural for
people in high brackets
Jones
has $2,000
of under-six- to
try to get that sort of profit
month profits and $2,000 of overrather than regular income. Here

of 20%.

How Security Losses Are Treated

How

needs

rate

the

the sale is

•-<

puts it in

wise

buyer; losses,
Commissions and Other Ex¬

How

profit.
tions
short the stock with his

1960.

the 8%

payer

If he says

first, because it

more* than

owned

cer¬

However, if he also takes a $1,000 broker in December. He holds off missions therefore affect only the
loss on securities, whether overprofit or loss on a trade.
covering the short sale until some
six-month or under, that will ex¬
State
transfer
taxes
can
be
time in 1960.
That takes it out
actly offset the $1,000 profit, and
taken as a regular deduction. Fed¬
of his 1959 return and

There

Security Profits

back as

1959

Line Saves Taxes

Works

Rule

far

used in

can

How

Investor

Individual

The

How

selling

and

buying

that losses

means

The rules for the

rules

stand-off.

years.

1954

also

apply to commodities, foreign ex¬
change, real estate, etc. Further¬
more, in trying to keep this brief
and simple, the many refinements
and exceptions in the tax law will

vestor"

capital. gain?
By and large, it is the profit on
else

1960, he has a deduction of
Suppose Jones buys. TOO shares'
$1,000 of-the $2,000 of losses/ In of stock in 1957 at 70, and another
1961, he can deduct the remain¬ 100 in *1958 at 80. In 1959 he sells
ing $1,000 of the $2,000 losses. The 100 at 75. Does' he have a five
net effect for the' three years is a
point profit or a five point loss?
deduction of $1,000, whereas tak¬ It ail depends. If he delivers the
ing the losses first, resulted; in'a 1958 certificates costing 80, he has
net deduction of only $509, and a five point loss.
If he delivers
taking the profits and losses in the 1957 certificates costing'70, he
the
same
year
was
merelya has a five point profit. He can

Hence, the big
push is for
capital gains.
What is

That absorbs $5,000.
Nothing can be done about the How Short Sales Can Be Used to
other $4,000.
Security losses of
Tax Advantage
', • *
any year can be carried forward
Through a short sale it is pos¬
only, not backward.
sible to shift profits or losses from
As this rule about carrying for¬
1959 to 1960, or for that matter
ward losses for five years has
indefinitely.
That is because of
been in effect for some time, it
the rule that no gain or loss need
five

maximum
take

deducted

reason

Only $1,000 of this loss can
in the 1959 return.

loss.

taxes.

income
The

the

71-year7
invest?
ment banking
and
stock
old

ueur^e

f, JKlynn

broker

house. Mr. Flynn,

Hornblower

who is

a.g^e,

manage^

Weeks' Syndi?

Department, joined the firm
in 1928 and was named a partner
cate

1952.

started

Form Leonard-Van Fossen

advantage How Wash Sales ,Are

Treated

such

deduction

can

taken

PERRY,
sen

Ga.—Leonard-Van Fos¬

has been formed, with offices
1022

Ball Street to engage, in

-If an investor sells stocks at a corporations. All that a corpora¬
a securities business. Partners are
profit, - and then buys the stock tion can do with the net losses is
$2,000 of open right back, the profit, is taxed. to carry them forward for five James F. Leonard and Glenn L.
■
over-six-month profits and $2,000 Not so with losses. There is tt years until absorbed by security- Van Fossen.

from, the

profits.

different year
For example,

suppose Jones has

Volume

Number 5902V.

180

The Commercial and Financial Chronicle

(2203)
of

A Domestic

Policy To Aid
Our Balance of Payments

New York
>

Central

banker

with the

that

links

domestic

monetary

solution

aims

policy

in the economy.

City

balance

our

payment problem

sound

monetary policy, and (icdutions
substitute or remedy for weaknesses

is no

Mr. Hayes refers to the build up of $17.5 billion

policies and in opposing certain
:

dollar.

our

European-U. S. A. wage levels

costs and price structure com-

emphasizing the need to make

our

of 10%, the
money supply was
rising at an annual rate of about

rate

which

be conline with

may

reasonably in
the normal long-term growth of
the
economy.
The explanation
lies in the consistent
ability of the
commercial banks, right up to the
present time, and in the face of
.".the heavy government deficit, to
sellers

net

government

se-

curities, disposing of a good part
'"'of their large holdings accumu-

He dis-

misses stress paid to differences in

re¬

that have been proposed with

cures

objective of maintaining confidence in

been

not

■'

lated in the easy-money first half
of 1958.' But this would not have

■

.-happened unless the Federal Re/ -serve had been exerting pressure
on bank
reserves, and the banks

petitive again against the improved competitiveness of the European

eral Reserve

pensate

tied-loan

policy;

shows

how European

higher interest rates does not help
lem; and,issues the reminder that

•

tant and

can

kept that
our

First,

been

said

often, this country
has, in the p3st two years, faced
an
entirely <
'
'
set of in¬

economic

•

era,

purchasers.

ward
;

this ' country's

essence,

balance

verse

been

trend

essential

orderly

and

nancing

country; vitally dependent on for¬
eign trade, it would be much
harder

refuse

current

let

gold

outflow

affect domestic credit
conditions—for the result might
well be an acceleration of the
loss of gold and a
sharp shrinkage
the reserve base.
Fortunately
for the United
in

States, the magni¬

tudes

involved

tional

product,

and

•

our

gross

supply

our money

our reserve

base

are

of payments

by reducing bank

element in

noninflationary;- fi-

supply.
different

This,

very

from

the Federal

Reserve

saying

that

account

to, .the

cause

drain

long-term
record, in this country or

rela-

tl,(?n to rate recently prevailing in
°*her leading industrial nations,
Now this rise in interest rates

toms

domestic

our,

our

defense

ment of the Free

the Marshall
Plan

and

goods and services.

our

related efforts

of
Alfred Hayes

the years

over

developWorld, we might
reasonably well satisfied with

are

with

.But faced

large

outflow

capital, military, and economic

aid funds—even though it may be

to restore via-

-possible to reduce it

over

period

bility to the economies that had oF years — we must perforce
been
severely damaged by the search for ways of enlarging much
War.
Our gold outflow and the further the
present favorable balrapid build-up of foreign-owned ance on current account. And this
dollar

balances

counterpart

have

been

tremendous

of a

the

crease

the

means

in-

control

monetary reserves
banks and pri-

of foreign central

vate holdings of dollars

especially
in Europe—a development which
helped to pave the way for the
restoration

bility for

converti-

external

currencies at
the end of last year.
So I think
we are warranted in a feeling of
considerable satisfaction in having
so

contributed

better

interna-

must think also of what

this outflow of gold and

build-up
of foreign-owned dollar balances
have meant for
what

and

they

own

would

economy
mean

continue indefinitely,

allowed to

1958

adverse

our

balance

Monetary

policy

try must of

course

marily to
The

1959.
at

gold

this
proportion
to about one-third in

Our

monetary

its

gold

stock,
of over $19

present level
billion, approximately half of the
Free World's monetary gold, still
represents a very sizable cushion,
But no objective observer would
argue from this that we can face
with equanimity anything like a
$4 billion adverse balance continuing for an indefinite period,
For one thing, there is always a
possibility that the share of the
balance taking the form of a gold
flow
might rise.
Liquid
dollar
assets owned by foreign countries
are

now

estimated at $17 V2 billiori

and

will

have

well

over

$2 billion.

risen

1959

by
Granted that

good part of this total represents

working balances that will be required
to
finance
international

transactions,

dollar balances

indicate that
affairs
serve

in
a

such

magnitude

must conduct

way as to
feeling of complete
a

fidence in the dollar.

ally, this

means

that

apparent

of this

our

precon-

Fundament-

confidence in the

price

tem-

economic

during

first

half

deficit.

sustainable

conceivable

circumstances

rate,

certain

that

under

this

domestic

ob-

jective might conflict with international

considerations.

There

in this

measures

But in the period we

has

the

18
clear that monetary policy

—

been

mestic

past

serving

and

both

our

needs.

interest rates here has stimulated

has

efforts by American financial
institutions to attract and retain
in the American market the dollar. balances accruing to foreign
holders, thereby perhaps helping
through, the action of market
forces to slow down the conversion of dollars into gold,
While it is less easy to demonstrate that our firm credit policy
has helped our trade balance, I

with

think there is
an

been

greater
increase
in
the
supply, we might well have
experienced a rising cost and
price trend which would have

This

hiueh

less

competitive

what
and

done

has not done in

this 18-

think

should

add

that

scarcity

loans

risen

almost

while at the
and

real

estate

record rrate,
time consumer

same

loans

have

also

which

demand.

discussing

in the United

take in certain

can

correct

the

deficit.

Before

balance

areas

Convertible
or

payments
passing on to e

brief review of other lines of
cor7
rective measures, I might merely
mention

certain

"automatic1'

Continued

page

by the holders

before maturity into

the

Company

of $13.50 per

adjustment

time

any

stock of

common

initial conversion price

at an

share, which is subject

as set

tent

that

piling
ances

forth in the Prospectus. \

other

dollar

call and redemption
on

subsequent interest
days' notice

the option

November 1, 1962,
date

payment

or any

thirty

the principal amount thereof

and accrued interest,

plus certain premiums.

PRICE 100% PLUS ACCRUED INTEREST

Copies of the Prospectus are obtainable from only such
of the undersigned and other dealers as may lawfully

offer these securities

the deficit results in a
of additional dollar bal-

Company

in this state.

assets

been

growing apace.
New cor- owned by foreign central banks
porate bond offerings have been or other foreign holders, the ownorily moderately lower than in ership of these balances or assets
the record period of early 1958. is shifted from domestic to forNew mortgages have been placed eign holders.
But bank reserves
at an annual rate of $18 billion, —the base for the money supply
And all this has occurred while —are
not
affected.
Also,
the
the
Treasury
was
financing a change of ownership does not
record-breaking peacetime deficit necessarily bring any great change
of $12.5 billion in fiscal 1959 plus in money velocity. And even to
a seasonal deficit of $7 billion in
the extent that the payments defthe first half of
-

Second,-the tremendous growth

icit

shows

outflow

gold, this is regarded by the Fed¬

J. A. HOGLE & CO.

PETERS, WRITER & CHRISTENSEN, INC.
BOETTCHER & COMPANY

J, BARTH & CO.

BURTON

CO.

EMANUEL, DEETJEN & CO.

CHILES-SCHULTZ COMPANY
EDWARD

HARRY W.

FIRST TRUST CO. OF LINCOLN, NEBRASKA

BACON, WHIPPLE & CO.

CHAPIN CO.

GARRETT-BROMFIELD & CO.

BOSWORTH, SULLIVAN & COMPANY, INC.

EDWARD
v

JONES

HOOKER & FAY
&

CO.

T. C. HENDERSON & CO., INC.
PETERS

6 % Convertible Subordinated Debentures due November 1\ 1969

not

ing in credit conditions or credit
policy. For one thing, to the ex-

States

new

have been

REFINING COMPANY

of the

capital to meet the needs

credit

meant

So far

(A Wyoming corporation)

Ffferf

growing
business.
Business
of commercial banks have

not

sell and to stimulate

measures

THE FRONTIER

Subject
rirmlar
t

effect in the sense that a
given payments deficit brings an
automatic and equivalent tighten-

has

foreign

markets, as well as to exert a con¬
tinuing and imaginative effort'to

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

$6,000,000

Circular j^ueci,

„

matic

what it

briefly

policy

prevailing
markets; this calls for
have in techniques of
design and merchandising. And if
effective competition price-wise is
to be buttressed by effective com¬
petition product-wise, we have to
have
fuller
knowledge of
the
we

negotiations,

the recession. First, "tight" money

review

Let's

monetary

products more effectively to
particular conditions, tastes

and quality preferences
in foreign

neither

buy these securities.

world

month period since the bottom of

•

announcement is

than cost and

even more

relationships to consider.
There is increasing need to tailor

A NEW ISSUE

markets.

only has monetary policy been
having some effect on the balance
of payments, but also the balance
of payments has had some effect
on
monetary policy.
Of course
there is no immediate and auto-

meeting foreign competition

have

needs and potentialities of

attacking this problem
ana
temng enect,

doubt that if, in

rially

more and more competi¬
our own both here and

courage

effort

money

Reviews Past 18 Months

and

Tighter conditions in our nificant contribution to keeping
capital markets, moreover, also our prices on a competitive basis.
slowed offerings in the United The same thing can be said of ef¬
States of foreign issues which are forts to extend a larger portion of
now running about 45% below the Federal debt, which is ad¬
1958 levels. At the same time, the mittedly lopsided in the direction
rise in short-term and long-term of short maturities. The Treasury

do-

international

our

balance of pay¬

policy

industry, for exr
hardly have escaped

are perhaps become
ing increasingly aware of this
problem of foreign competition
and its unavoidable implications
for wage contracts and
price poli¬

1959.

It is my hope that our
firm credit policy has induced,
and
will
continue to
induce,
are consid- greater caution on the part of the
months — it participants in industrial wage

have
been
attacked
abroad as placing undue pressure
on
foreign. monetary
reserves,
country

Fiscal

prospect
for this fiscal year as
compared
with the last is making a most
sig¬

to keep interest rates
which in turn depends upon price down, we had added materially
stability, has been and remains more than we did to bank reserves
our
chief objective.
I suppose it and thus had supported a mateat

restrictive credit
of

while

drop

may

in this counbe geared pridomestic needs,

our own

achievement of

growth

seems

form

and

ment, have some effect in
pering the capital outflow.

balance

the

cost

our

It is here, of course,
monetary policy can have a
significant influence; but it may
also, as I shall suggest in a mo-

ering

took

keeping

that

payments amounted to about $3.4
billion.
This year it is running
at the rate of. about $4 billion.
Last year some two-thirds of the
outflow,

over

all

reversed

ments

have been times in thevpast when made American goods just that

Continue
Indefinitely
Contmue .indefinitely

Tan't
*

our

above

structure.

many

tional financial structure. But nat-

urally

flow. The net outward movement
of pi^vato United States short-

term capital, which had reached
the present favorable balance for sizable proportions in 1958, was

success

economic

leading to

omy

can

the best

Monetary policy is a necessary
but by no means sufficient
remedy
the weaknesses in our econ¬

the

of the steel

ample, it

the

debt management are of
great im¬
portance. The vast improvement
in the Federal
budget in

wage settlements followed
by sizable price increases. In the

case

our

economy

that call for treatment.

con¬

tionary

which cannot be allowed

longer

can no

cies.

to go on
indefinitely, but also as a
historical highly useful indication of symp¬

they

tinue along the old path of infla¬

siz-

gap,; is
gone—and its
disappearance
matic proof of

labor that

reserves

larger net outflow of

and

effective, monetary
policy must of course be
accompanied by recognition on the
part
of
both
management
and

price

for

most dra¬

To be fully

and fiscal

only

and military has played soem corrective role in
outlays abroad).
Were it not for connection with our balance of
these heavy commitments for the payments deficit and the gold out-

Growing Foreign Competitiveness

ad-'is worth notil?S that

even at their
Present level interest rates are not

be set by govern¬

can

ment fiat.

blandly ignore the balance of pay¬

capital, foreign aid

dollar

rate levels

many other segments
of-the economy, labor as well as

does

—

management

however, is
can

leg¬

restrictions on such debt
extension
restrictions based on
the mistaken belief that interest

abroad.

reserves and the

money

we mav

the end of artificial

tive with

components/ In

has

fervently hope that
see

islative

growing

still rela¬

tively large in relation to the bal¬
ance

soon

notice that foreign steel has been

na¬

up-

tion

private

smaller

the

Particularly high either in rela-

much

rates

but still substantial favorable bal-

offsetting- open

operations.

effect, we do not let the gold out¬
flow automatically tighten credit

Thus,

interest

SSSKTa JeduSri
on

and I

■

the

renresents

short-

ments deficit. We recognize it not

United States capital and government payments (including private

of the

era

and

The

postwar

'.those
V

attractive

rapid business redollar's ability to purchase goods covery accompanied by a record
and services at competitive prices> peacetime budget deficit.: And it

ance

con¬

ditions.
the

levels.... considered

tern at ion

way

word or two on the background of the problem. As has

new

balance of payment probdollar assets are still impor¬

domestic economic growth.

accompanied

recovery

would not have found purchasers
■.unless interest rates had risen to
f

with increased productivity which,
to continue our international responsibilities

also, could permit us
and

recently announced

our

through

market

our

on a

effect on bank reserves produced
by all these factors taken together
is not fully in accord with mone¬
tary policy, we can and do com¬

producer; anticipates favorable results from
,

System,

run

money

were

holdings abroad in stressing the need for realistic and courageous
the end

has

equivalent rise in

basis at least, as
only one of
supply. While loans. the many factors affecting mem¬
increasing at an annual rate ber bank reserves; and if the net
any

sidered

■

loans

•

■

the

3%—a

Ily Alfred Hayes,* President, Federal Reserve Bank of New York,

bank

flected

WACHOB-BENDER

HUSTON & CO.
CORPORATION

■

The Commercial and Financial Chronicle

(2204)

that

Fifties' Dollar Gap Becomes:
The Sixties' Dollar Glut
By J. Peter Grace,* Chairman, National Convention Committee of
the National Foreign Trade

markets,

"Ernest

Ford

Motor

out

that

the

:■£

York City

$7.90

In England it is $3 per

hour.

Spokesman for foreign traders group asserts we are "costing'' not

area

per

hour,
$1.60.

in France $2.38 and in Milan

of,

international trade,
in

resources

Grace

Mr.

avers

meeting this situation. He

sible

American

overboard and get into

foreign aid

our

requirements that

challenges, and warns

business

leaders

"protectionist" panic nor

Instead, he calls upon respon¬

program.

revitalize

on—competition.

what

lem

best thrive

our

own

through

company

trading activities we are

own

and

have information

Instance after instance of American
exporters being underbid by

the fact that

need for

to' dwell

;me

war

labor

Soviets

Europe is 50%
in

are

our

years.

rates

which

still

twice

Western

our

the horizon in

international

our

commercial
situation

without

financial

transactions

cannot

to our national welfare

and to the world-wide position of
the

States

United

juncture in

this

critical

relations with the

our

soviet Communists.
It has
of

never

been in

the nature

the American people,

and

tainly not of the American busi¬
to wear a hair shirt, to
complain or to cry on a sym¬
pathetic shoulder, and this prob¬
lem will

not overwhelm

Foreign
breed of

crisis

■

traders

are
a
tough
They go through a
They have been

men.

day.

us.

hardened by years of rugged com¬

petition

and

all

American

industry I don't know of a more
highly skilled, more dedicated or
a

respected

ternational
"Costing"

Let

businessman.

Not "Pr»cin«r" Ourselves
of

Out

World

for

Markets

moment

the hard facts of
situation

trade

and

moment

favorable

ments.

our

export

are

balance of

What is the

decline?

our

reason

Essentially,

ago

balance

the deficit

periencing in

of
ex¬

pay¬

for this

it has been

nations

primarily Japan, today are
wealthy, booming countries. They
are developing at a
rapidly aceele-r
rated pace and overtaking us in
the process.
During the periods
from
1950
through 1957, as an
illustration, Europe's gross product
jumped 88% and Japan's by 156%
while

increased by only 49%.

ours

Great Britain is experiencing an

unprecedented prosperity. Its ex¬
ports are now at an all time high.
In

1950 British exports amounted
$6.3 billion. Last year its ex¬
ports reached $9.4 billion, an in¬
to

crease

of 49%.

Japan, which like

similar

tremendous

in
Japan ex¬
ported £827 million in goods to
the world and last year its over¬
its

exports.

trade

seas

upsurge

1950

amounted

$2.9

bil¬

lion, an increase of 250%. Western
Europe which is moving fast, very
fast, to take advantage of its com¬
market will be

petitor for
Western
the

many

among

the

com¬
come.

new

and

now

war,

maior

the

nations of the world.

der

lively

Germany, torn apart in

aftermath

stands

years

trading

France

leadership is
reasserting itself in international
trade. And as we all know, much
of the growth in foreign trade of

businessmen,

here in the American market.

pricing

are

foreign

our¬

markets.

Rather, I would say that we are
"costing" ourselves out of world
markets

since what

really the

un¬

firm

these

out

countries

The prospects,
for less but for

has

been

therefore,
more

abroad and at home

right

and

During the lush immediate post¬

„

what

would

and

many

are

not

competition

well.

The

consequently

far

out

our

prices—are

line with

our

com¬

support to the

principles

the

•To

improve the: cost and effi¬
our industries we will
have to take unpopular measures
and

will

have

renew

petition in foreign market*. Times
have changed, as I have already
stated.* The
dollar; gap of the
fifties is becoming the dollar glut
of the sixties.' The new situation
must

reflected in

our

policies,

particularly toward Western
rope.

interna-

enter

not

overboard

this and

get into a protec¬
This is going to be

tionist panic.

tough test of

our

maturity

leader of the free world.

the

try

take the easy way out"

by rais¬
ing tariffs and establishing more
quotas we will do more damage
to our prestige and to the faith of
other countries in
of collars in aid

repair.

able

be able

ever

irrepar¬

cause

friends

our

weaken

everywhere

holds

freedom.

than billions

will

We will

harm

the

and

strong¬

In this

coming year, foreign aid
is not going to be popular in the
United States. But we cannot for
that

afford

reason

this front.

confirm its support of this legisla-

intends
trade

must

about

the world to hear that the Soviet

tional

Against Protectionist
Panic

But

Union

Premier

Eu¬

Warns

upon

Russia's

our

efforts to sell against tough com¬

flow of private capital abroad. We
trust that the Administration will

Meanwhile,

clear

serious

ciency of

Khrushchev has announced for all

Bill which provides effective incentives for stimulating the

occur

produce more goods for the export
market at less cost.' f
:*•'

Boggs

Western

our

back,

Now

retreat

that the strength

European allies is

we have every right to call
them to join with us in ex¬

tending

development

abroad.

But

let

assistance

clear

than

big way. In the tion without restrictive amend- the United States cannot thereby
concept of trade, political ments when
it comes up
for escape its duty to participate to
considerations and propaganda for reconsideration next year in Con- the full extent of its
capacity.
a

Soviet

communism

where

the

all

are

considerations.

important

Russian

communists

consider it to their advantage they
will underbid us regardless of cost
in

order

make

the

gress.

that

expect

sale

and

Responsible

And
like

noted

this point

add

that

I would

all

also
have

and satisfaction
the stiffening attitude of our State
Department toward those, even in

promote the

cause of communism, this hemisphere, who indulge in
endeavor, the Soviets wanton expropriation and show
certainly been
relentless, contempt for American rights and
Since 1954 they have more than the American
flag.
These mistripled the volume of their trade guided actions are discouraging

work

According to figures revealed just
last week in Moscow, they expect

and in

ing

some cases

investor

actually destroyconfidence and the

must

toward

multilateral

which

the*

political

world

lifeblood
as

vigorous

well

American

trade

social

material

help, as much
else, to advance the
American

American

foreign trade

will

tem.

Ameri¬

We must realize that

progress.

continue

expanding, bal¬

anced

and

this

leaders

business

can

with pride

have

anything

cause

abroad

democracy and the

private

enterprise

sys-

consequent flow of private capital
During Premier Khrushchev's
another 25% increase in 1960.
from developed to less developed
recent visit to the United States
They are signing trade agree- nations.
Without this flow the he demonstrated that,
he is a vig¬
ments with more and more coun- righteous aspirations of the
people orous campaigner for communism.
tries. Their promotion delegations in the less developed nations for
But when he put the cold war on
are
tirelessly moving over the a better life must face certain the basis of economic
competition,
trade routes. Their goods are to frustration.
he placed it on the
campaign trail
be seen on display at every inwith the sympathetic assistance
that we
know
best.
Americans
ternational exposition. To a con- of
our
government,
American have always thrived on competi¬
siderable extent they are focusing businessmen nevertheless realize tion and
they have always been
their trade drive on the less de- that the
job of promoting Ameri- able to meet it effectively.
veloped countries — for political can exports is primarily theirs to
Traditionally we have followed
reasons in part, but for economic
do. It is a difficult task and will the slogan that ^'trade follows the

tries

Thev

too.

reasons

ne^d

the

products which these

mary

produce

countries'

fibers, rice, tea,

fruits.

and

sugar

—

pri-

coun-

provide

These
a

same

where

tures,

machines and manufac-

—

rolled

steel,

petroleum,

lumber and wheat. For the under-

developed
ortestion

countries,
th?t

Soviet

there is
trade

attractions. The communist
tries

provide

market

anH

them

demand the utmost of our ingenuity, determination and skill. As I
see it, the situation presents both

challenge and

opportunity,

convenient

market for Soviet products which
would
be difficult to
sell else-

issue here is the constantly: rising .odds
right now are against us
cost of production
of American because our costs of pre 'uction—
products
at
a
time
when
our
Western European and Japanese
competitors have lower production
costs and a more rapid increase in
the rate of productivity.

Entry Into Trade

Britain depends heavily on foreign
trade for its economic welfare, had with the non-communist countries,

stated by many eminent American

selves

U. S. S. R.

Western Europe and the Far East,

mon

look

deteriorating

our

abroad.

I mentioned the loss in

trade

around

group

than the American in¬

the world

devastated

war

cer¬

nessman,

•t

The

and

this

and

long
continue
damage to our

serious

economy,

prosperous.

would

case

there is trouble

ours

quite

Europe.' It

face

actual:quantita¬

problems in the struggle ahead to

years

„

increase

that

•

present

roughly 3 to

greater than

future,

tive

recent

the

differential,, the

product of 6%
double

the average annual rate of
this respect is far
own. Some of increase in labor costs in Western

achieving an
annual increase in gross national

than

differential

tempered

our

the most realistic studies indicate

that the

should 'be

United
States
foreign
trade,
their foreign competitors.
,
.
therefore, is confronted on the one
when Western Europe's
Of .course, contributing to our hand
by
vigorous
competition
in any great detail on the sharp .economy was being fevived under,
iprice disadvantage is the fact that from'its friends' and on the other
decline in American exports, the the stimulus of tlie; Marshall plan,
we have been lagging behind most
by equally .energetic competition
rapid dwindling of our usual fa¬ American iexports had a dominant of
the nations with which we com- from
the communists who are
vorable
b alposition in world trade and price
pete in rate of increase in pro- willing and able to make great
ance of trade,
was not much of a factor.
With
ductivity of labor. For instance, financial sacrifices to achieve the
and. the
exour
industry intact we had a during the period 1948-1958 our political ends which they desire; c
epjtionally
position
over
our
commanding
productivity as measured by its ;
large deficit in
competitors. But during the early index in
manufacturing improved
We Are Not W.thout Resources
the balance of
Fifties
the
tide
began to turn
by
3.6%
compared
to
Japan's
We are not without resources,
payments of
against us and the danger now is
12.7%,
Germany's 8.3%, Italy's however, to meet this situation.
the
United
that it may become a flood tide.
7.7% and France's 5.4%.
Our
government
has
already
States
now
The seller's market of previous
The Netherlands also showed a shown great understanding and
being encounyears in now a buyer's market in
greater increase in labor produc- has taken specific helpful steps to
tered.
The
which we find ourselves with high
tivity, Our figure was only better assist. It has already been suchighlights will
quality merchandise priced to re¬ than those of Belgium and the cessful in persuading some of the
suffice.
Our
flect our high cost of production in
United Kingdom.
*
major trading nations of the world
exports
have
areas where quality of American
This, of course, is the problem to relax discriminatory practices
dropped from
products is preferred but where that is at the heart of most of the against the importation of Ameria
peak
of
the price now pretty much deter¬
J. Peter Grace
current
labor-management
dis- can-goods. Action already taken
$10.3 billion
mines
the
sale.
In
contrast
to
putes where working conditions or
contemplated
by... Britain,
during
the
previous years, we are now bid¬ and contract
provisions covering France and others will materially
first half of 1957 to $7.9 billion
ding against strong, prosperous same have been a greater bar to help American foreign traders to
during the similar period of this competitors. Last
year's recipient settlement
than
actual
hourly seek larger markets in the highly
year—a
decrease of $2.4 billion, of the Robert Dollar
Award, by wages. Unless management is go- industrialized and expanding maror 23%.
During the first half of the National
Foreign Trade Coun¬ ing to retain and in some cases kets of these nations,
1957 our country had a favorable
cil, our good friend Rod Herod, regain, the right to
manage, we .
In the companion field of inbalance of trade of $4.8 billion
likes to say that General Electric
as
a
nation will continue to be vestments
and this has dwindled almost to
overseas,
experience
prefers prosperous competitors to outclassed in the
important ele- has proved that the U. S. Govern¬
the
disappearing point of $500
hungry ones, and I'm sure that ment of
productivity
which
plays
ment
not
million
only
realizes
the
imporduring the comparative Bill Knox of Westinghouse
agrees such an
important role in deter- tance of increasing the flow of
period of this year. The balance with Rod on this. And indeed the
mining first our costs of manu- private capital abroad but actively
of payments of the United States
U. S. wanted it that way and we
facture, second our export prices, seeks to promote it. We were very
suffered a deficit of $3.4 billion in
poured out many billions in for¬ and
thirdly our share in the world pleased to see that the State De1958 and the deficit this year may
eign aid to make these competitors
export market.
partment last July gave strong
be around '$4 billion.
Obviously,

There is

-..,

expectation

outperforming

during

our own

by the realization that

overlook

and in industrial
constant touch with this prob-' output of about 9%. This is better

our

should not go

retreat from

without

not

are

announces

should be met to meet the competitive trade
we

Europe and

our

Any optimism engendered by this

doing all too well.

are

their system in

line worker
is
$2.44, exclusive of fringe benefits,
In
England it is $1.05 and in
Cologne, Germany it is 69 cents,

U. S. S. R.'s entry into, and methods

that

the next few years.

Soviet power and influence in the

Ford

assembly

greater than

rope

world, they

duction

predictions

are

national product, which
underlies the phenomenal rise in

We cannot

productivity rate is opposite of Western

There

gross

The current hourly base rate for a

Japan. In commenting, too,

our labor and by
cutting production costs.;

In the crucial matter of increase

"pricing" onrseives out of foreign markets because our cost of pro¬
and

countries have offered-a practical productivity of

Co., has pointed
cost per hour for

Detroit

the

•

of-export commodities of their trad- competitive position abroad will
ing partners as repayment for improve through an increase in
what they sell:;
production costs in Western Eu¬

Breech, Chairman

the

M»,y

Thursday, November 26, 1959

ments. Moreover, the Soviet bloc by further increasing, the rate of

•>« •solution to the transfer problem—
Cites Examples
that is, they accept .the normal

purchasing automotive tools and
dies from independent producers

Cn"n^ir' "*"* president, W. R. Grace

& Co., Neiv

lose

stand, to

profits and jobs.'

with

notentially

The

the

challenge

downward

lies

trend

stopping
our

has

coun-

lar?e

field.

and

tell

This
concern

less
you

for

their

products.

main

our

that

stakes

are

than

that

frank

there

pat

economic
we

con¬

shall

the

this—and
we

will

have

because

the

high—we can seize the
opportunity which has been given
to us to make an effective contri¬
bution to "the advancement of the

American

worry

I would
I did not

doubt

ex-

today ' and

today's

to -adopt

concept that
"the flag follows trade." And that
flag should be the American flag.

ports and

formula, to resolve this problem,
petitors. • Our leading indus¬
term* deal* at fixed prices appear There is no easy way out. To sell
trialists, who are calling attention to them as a protection
against more abroad we - will have to
to this situation, are also
warning sharp
short-term
price
move- make our prices more competitive
one,

have

Traders

test with the communists

re-establishing Amerino ca's position in the foreign trade

another
a

"Describes the Challenge Facing

flag."

private enterprise

sys¬

tem, to the prestige of the United
States and to the welfare of man¬
kind.
'
•

Long

•

*From
1st

talk

General Session

Mr. Grace before tl
of

the 46th

Nation

Foreign Trade Convention, New" York Cit
Nov.

is,

1959.

Volume

19Q,

Number 5902

The Commercial and Financial Chronicle

^potential for this group has been result from vastly increased govplaced as high as $100 million, but ernment support througn zne*Nacurrent volume is

generated

By John F. Bohmfalk, Jr.,* Director of Institutional Research,
.

Salient

developments affecting the drug industry's zigzagging com¬

stocks,: ranging from

mon

companies

doing,

are

government attacks

closely

are

what

scrutinized

■

individual

market

who

advises seizing

they develop.

buying opportunities

The writer submits the

attractive to him in what he considers is

appear

selective basis

relatively

and

1959

modest

total

31.935

lion.

eaininc

estimated

of.

o r

the

rieht

meet

>4
td

nersonal

advantage

•

a nnanciaj.
financial analyst
analyst's
noint
a
S-point

From
rrom

any

plications

sucn

coronary

ana-.

Kline

a-relationship of stress to
infarction. The cosmetic

coronary

con-

with specific organic disease states (as established by mortality and morbidity statistics) to

ible if the steroid deficiency could
be established,

the

government-

prod-: cerned

the.

Smith

area.

haps

as
hypertension, and
artery disease, and per-

applications for drugs represent a
fabulous
market
as
yet unexplotted — a remedy for baldness,

market/words,

therapy

the

tune. of

$400

million

for

example, is

potentially feas-

potent,; spent in fiscal 1960, double the
compound drug industry research spending.

year a

short-acting

"SKF. trans 385-A'

market.

■

for this

the

pharmaceutical industry

some attention is paid to
methodology: how drugs act in a

proper,

Steroids —The cortical steroid

comneti-

jaau-i ssss

bil--

The ah1*

sence
m a

852%

industry

sales

with

These

may.' replace, shock

/may introduce next

veaf

*•••

tfonal Institutes of Health in

forms of competitive, free enterprise—such as the patent system

uots

hypotensive

pharmaceutical industry has
been realizing
a
pretty average
a

called

The

Lakeside

and have application in

growth industry.

from

its anti-depressant..

of companies that

names

only $8 million

Pfizer

(Niamid), areas as cancer, mental health,
(Nardie),
Ciba heart, arthritis and related meta(Hitann),
Lakeside
(Catron), bolic problems, neurological, alRoche (Marplan), and Geigy (To- lergy and infectious disease, denfranil).; bcxiermg nas arranged a tal, and general research. In other
license

analyst.

Product developments and opportunities are described by Mr. Bohmfalk

chemistry; the hope is that better
control will be gained of such ap-'

Warner-Chilcott

McDonnell & Co., New York City

(2205)

invesi-ment yaiues

•

Pharmaceutical

stocks

common

^fve zigzagged around much of
-year»" some? ; like American;
Hom^> Pa,^e ^Davis, and Pfizer

vSfjLSSSSOSSt StS-fiSSS.'S-tS BSBWS5S5. ssss

JSsawsR-sar

tss «rsza ttst

and. may. witness next greater attention is paid ' to t
the s«Pons set.Qtr .^ general) decime
year introduction
of new. Upjohn screening and characterization
oi 111 the group, but lately a reversal
nMri;y, *«,{/>«•.»
i
asrairLhas beenr exnerienred nart.lv

Deicmil,

u—

*i__

n e w

product

de-:

lop men t.'
during /the
ve

year or of
epidemic

sibilities

tance is

between

part¬

for the below-

average

also

and

reduced

prices

John

Bohmfalk, Jr.

and

polio vaccine re¬
stricted the gain. Research spend¬
ing accelerated in 1959, but the
rate of ghin will taper off next
year.

After

recession in

wholesalers'
to

12%

sales,

inventories

dropped
annual rate of

their

the

year'has

current
to

return

when

1958

seen

normal

in¬

level of 16%, producing

ventory

million

$60

swing in business
manufacturers.
Since
added sales of this magnitude for
the wholesalers' pipelines can be
considered marginal sales, profits
were aided accordingly.
Another
angle on the sales picture is provided by Commerce Department
figures showing wholesale drug
volume up 10% during the first
half, while retail drug -volume
a

.to

drug

manufacturers

has

suggested

not

8.3%.

are

average
are

only slightly.

Rob-

drug wholesaler,
however, that its sales
in line with our industry
and that its inventories

reports,

.gains

McKesson

major

terms

the

sales

growth of 12% compounded, the
gain of 8^>% in industry volume
this, year and about the same in
1.960 is somewhat disappointing;
but it is in line with the fairly
^conservative

forecasting provided

in Piizer's George B. Stone's com¬

prehensive thesis report.
•

*•

;

Government
;

...

•

Affair

with

off

came

possible.

Several others hope,

On the basis of

other

industries,

discount

ment of the

tant
«ciiu

are

inclined

government

harass¬

has

distinct
^political motivations.
Charges
.that drug prices are too high and
profits too great will be made by
Kefauver

.the

Committee

'sweeping investigation that
ises

•

prom-

drag traaemarked drugs
.into the public spotlight. A polio
vaccine antitrust trial

producers of the

accuses

five

Salk vaccine of

criminally

conspiring to fix and
,bid uniform prices on government
polio vaccine contracts.
Finally,
.

-the

Federal

Trade

Commission

conducting

] cycline

hearings on a tetra(broad spectrum antibi-

■

otic) antitrust complaint, aimed at

.breaking
and

the tetracycline
price structures.

patent

from

ve"

well

industry

[ndustry^hould
from

mvesu-

accrue

For

assume

one '

the

dgittful

public

standpoint,

investi-

mese
these

relations

of the Free
World's most powerful contributors to peace and scientific progAgain,

ress.

heavy

one

the

public

costs

•>

distribution

exposure

attached

the

...

of drugs

might

serve

to still the clamor for Fair Trade,

other

ways

relief

from

this

thirds

the

afford

situation

price paid
of

costs

some

(two-

at retail

distribution).

costs

well

few

as
price
products as

polio vaccine, it

may

be said that

reductions

pressure on profit
intensified. Another

margins

thought

which should be introduced is that

growing percentage of the drug

business is

institutional—hospitals

government agencies lor ex¬
ample; such business tends to be
and

less

profitable.,

price

declines

Finally, steady
bulk (not pack-

3Setd), vitamins, attributed in part
to increased imports, have pcfor

curred

several

years,

and

probably will continue,
way

is directed to the discovery of big
volume specialty drugs which can
cn£">idlfv

While drug

compa-

long margin.

solescence.
Product Developments
.

Inproductions
the

are

-ground

contributions

panics.

made

concentrated

price"

ment

the

science

to
"high-

pharmaceuticals, govern¬
probers are attacking the

lifeblood

(nies would like to shift the battle¬
-mbdical

Success

has been frequent enough to more
than compensate for product ob¬

competition and in effect to break

drug prices.

now

ready.

latter activities; Sometime in 1953,
the hormone aldosterone was dis¬
covered

Diuretics

Merck

—-

has

main-

identified

and

sodium

retaining

hormone

the

in-

tained a leading position in this volved in the production and
Market with Diuril, Hydro-Diuril, maintenance of edema in clinicax
,Hy.diopres' and Diupies, account- disorders as congestive heart fail¬
ing for two-thirds of the $50 million

diuretic

and

anti-hyperten-

sive market. Ciba and

Abbott

other

Squibb,
Pfizer are

producers,

Schering,
trying

uretics

with

stake

claims.

out

Di¬

in .process.

aldosterone

represents

Aldactone, Searle's

blocking
a

compound,

approach

new

make

tion;-

and

times the potency
dihydrochlorothiazide type

the

may

are

while

Bristol

and

significant contribu¬

....

Antibiotics

—

ure

Co.

others.

and

started

aimed

Chloromycetin^

Searle

research

program

the

discovery of antagonizing the effects of aldosterone,

and
that

successful

was

a new

the

extent

product, Aldoctone, will

shortly be offered to the medical
profession
edema.

sweep

cite
the

for

the

treatment

illustrate

the

chemotherapy,

broad

1931:

modified

sulfa

1()coccus.
are

Bothi Bristol and Pfizer

shortly scheduled to market
"tailored
penicillins" which are

only

slightly

different, are not
broad spectrum, but may produce
slight

advant.a<?es

drugs to in-

blond

activity in the stocks,
as
buying oppor¬

that

tunities

develop, they should be
by institutional investors.
drug
industry - is
without
doubt
a
great growth industry,

seized
The

in which the investor secures

one

vigorous
research
and
product
development activity as well as
potent merchandising, skills. It is
not

industry for others to

easy

into;

break
trouble

have

not

does

overcoming" the cost-price
generally speaking;
and

spiral,

seems tq be no ceiling to its

markets.
Proper selectivity thus becomes
matter of
determining which

companies are best managed and,
an
important extent,
which

companies
...

about

are

pop

Wlth a blf ™;w Product. My pri^ selection remains Smith
oral hypogly- *p£ne.
Fiench, and we add

•

major

new

controlled

area

still

;

1S
chemotherapy
that ot
he virus diseases, possibly including cancer.
Another

Sons

fanlnSnt
nnAidncton2ano^

Seatte

speculation
on
ldocto , a p s
sibly very important new product.
y,

k Chemical

{alls in this latter

cholesteral
for
marketing early in 1960.
A cotvcategory

its

anti

MER-29 should be ready

Yery P10™'slnS direction indicated sjclerable

of other

number

munjogy' and"'"blood^chemist^" companies could also be
exploring

IpvpIk

the natural
antibody protection
_.a.,

processes

and absorption.

seems

hibit the tubercle bacilli and the
organism of leprosy; sulfas as

diuretics; sulfas as
cemic drugs for the treatment of
Chloromycetin s growth might be diabetes; and sulfas as antifolic
constituted
m Lederle s Declomy- agents.
cin
and
Eaton
Lab's
(Norwich)
Altafur, both claimed to be effec¬
tive in treating resistant staphy-

nervous

can

drugs

group

present-day by-products of
discovery of the antibacterial

sulfanilamide

amazinS' vitality (sales perhaps as
bigh as $80 million vs. $66 million
last year) bas provided much oi
Parke, Davis -impetus Threats to

drug

recom-

™ndedthan
but the
appear
le3S attractive
four above.
To

Attentjpp
in

new

products

drug

com-

naturally

the^ following

arcas;

Anti-Depressants

♦An

muscle

relaxant

New York State Electric & Gas

which

Corporation

developing modest volume uAlimitations imposed by Wal-

der

jace Labs small marketing organization. Vick< Chemical has done

;

Common Stock

well with an
anti-obesity
product marketed by-two of "its
divisions
Merrell's Tenuate and
very

•

(Without Par Value)

—

sales

Tepanil.

Holders

Polio vaccine
rather

offered the

erratic

but mainly downward. Eli
Lilly's sales of vaccine l)ave fallen
from
a
peak of $33 million in
1956-7 to $12 to $13 million esti¬

the

course,

As in all

the

Company's outstanding Common Stock

being

Subscription Warrants will expire at 3:30 P.M.,

Time,

December 7, 1959.

The several Underwriters have, agreed,

Opportunities?

are

to subscribe at $25.50 per share for the above shares at
of one share for each 15 shares of Common Stock held of record

Eastern Standard

What Are

rate

of the

right

November 20, 1959.

mated for this year.

subject to certain conditions,

purchase any unsubscribed shares and, both during and following
subscription period, may offer shares of Common Stock as set forth
the Prospectus.

the

scientifically oriented

organizations, the pharmaceutical
research

apparatus,

responds

stimuli:
The
desire
to
create, the perception of a need,
the
pursuit
of
fundamental
knowledge, etc.
In the biological
sciences, investigations of the life
processes are leading drug houses
into the productive areas Of animaj
health and
nutrition, even
jn^c the areas of plant hormones
many

Copies of the Prospectus may be obtained from any of the several under¬
writers only in States in which suck underwriters are qualified to act as
Prospectus may legally be distributed.

dealers in securities and in which the

The First Boston

regulating growth and .cornbatting pests and various disease
In the human side, a pow-

erful

stimulus

research

should

Corporation
Wertheim & Co."

Lehman Brothers

,,f0r

states.

The market

466,961 Shares

$6* million market altogether, with
further
growth
quite
possible.
Carter's Soma is a potent anal¬

gesic and

November 24,1959

NF.W ISSUE

gicides licensed to Schering (Ful¬
vicin) and J & J's McNeil (Grifulvixi) have started well and are
probably capable of developing a

National's

of contrast, managements
of
drug
companies
pay
closer attention nowadays to profitability of the entire product line,
When certain products no longer
prove profitable, they are discontinued,
rather
than
carried
as
formerly as a convenience to a
few users. But the main stream
of product development activity
By

command

the government is try¬
ing to create a destructive form of

Pro vera,

...

■

...

The underlying theme running
through,all three investigations is

his money,

good progestational

very

Upjohn's

address by Mr. Bohmfalk before
^
.
..
against diseases of many sorts.
Anti-Diabetics—Upjohn's Ori- Heart disease in all its ramifica- the 28th Mid-Continent Trust Conference
sponsored by' the Trust Division of the
nase, is
pretty much the whole tions provides a vast area for the American- Bankers
Industry Profits
Association, Detroit,
Whereas the government com- story, as PfizeFs Diabinese and fruitful application
of
bio- Mich., Nov. 5, 1959.
plains of excessive profits, indus- ,U. S. Vitamin's DBI have not setry profit margins have been said cured much volume.
Orinase is
elsewhere to be tapering off.
A some 30 % ahead of last year and
statement such as the latter cer¬ is probably close to a $23 million
This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities.
The offering is made only by the Prospectus.
tainly
needs
qualification.
In level, still growing.
view of rising research and dis¬
Other Products—The oral fun¬

that

drug- prices are too high.
'.Rather than treating the issue in
terms of what the patient gets for

irom

could

drug

role,

drug,

drug industry. Impor¬

ueneius
benefits

°ations
the

experience with
investigations of

var.,

are

g o v e r n m e n t

gations, indictments, and prosecu¬
tions presently
under way con¬
tinue a pattern of drug- industry

that

overtones,

the

;harassment

bruises

few

however, to make strong state¬
ments
having
public
relations

has

governmental

may

dustry might well be satisfied if it

investi-

Several

monopoly subcommittee, that in¬

tribution

Attacks—An Annual

that

possible to make a "show¬
before the Kefauver anti-

represents

postwar

re¬

gained

bins,,

and

drugs, and joint gov¬
ernment-industry research efforts.
One drug industry representative

ing"

for

antibiotics

pos

tailers

ly responsible

growth,

disrupting, doctorrelationships, cooperation

patient

impor-r

any

might be felt in the

concern

Merrill Lynch,. Pierce, Fenner & Smith
Incorporated

l '

'* ''

The Commercial and Financial Chronicle

(2206)

the

and

We Face Dollar Devaluation

toppling

Thursday* November 26, 1959

dollar

the

*■

'*';

anyway.

' !

Says II Is Now Too Late

S. Nattell,* Financial Editor of the "United States

By Robert

With

Investor'

Claiming

have outpriced ourselves out of the world's markets, Mr.

Nattell concludes

late to

too

the dollar

save

based

1934's

a run

financial

Iimnnnr

The United States has been

ring

unfavorable

tional

balance

payments for
and as a result of
*

built

have

ers

run-

interna-,

rearly 10 years
this foreign-

short
1 i

term

b i 1 itie

now

down

SI9.5

The

billion.

short-term

our

gold exceed
United

liabilities

against
then

our reserves

States

will

embargo

forced

gold and
Nothing could
stop it and all the rosy public relations, soft soap and talk coming
out of Washington and New York
would not change the cold facts.
We might lull people here in
the United States, by the public
relations technique of confidence,

Our

our

devalue the dollar.

20-year

low

develops

run

confidence in the bank's solvency,
then the bank closes down. If a
run develops
J
on the tt„;^
United States

to declare

gold reserve
is

When

banx and the depositors lose

on a

diffe rence,

■

————

can't

that

States and

United
are

20%

aroUnd

into

that

not-sacrificing

———

shouid

budget to $41 billion.

says we

have should increase it by $10 billion.
one thing and that is that
we

it considers it needs.

;'J ':*

necessary

tions Commit-■
.

ha«

'gace<i

taxes.
It

president

o u

speech he

one

could

have

the average

said- that

direction

shorter

our

great that if

in *that

continued

studies

peets

Nixon

prosperity Was

0£ various as-

Only by tariffs and quotas can we
keep out the low-priced imports,

that

seems

made in tlie 1956 campaign, Vice-

make

that if.
increase

says

should

en-

sdme lO

university

last year.

Jackson

Senator

Fn^8n SL

give the military as'

can

never

much

far this year

above

—

■

are ■

^rouI)s of prothe lessors to

flooding

——

higher
taxes' a longer work week' 1 know
'"^etnef

That, however, won't give us. any
gold that the _dollar needs- for
u—,'s—
-.
' .
backing.
•.
■
are

————

,Qro

via so-called foreign aid?'

imports

—

"enou^h'

BARGERON

The voices in this country who in- tions to hold down the military
"slst

And haven't
or.legs doing this

been more

anyway

CARLISLE
*

have out-

True

•

from devaluation

exnortsaf

•

now

rencies in exchange.

ers' claims.

the

■against our
gold reserve
•of nearly $19
■billion.

;

•

attempt to give the stuff away or
take
near-worthless "soft" cur--

dollar because the facts show that

claims of

.up

1934's

fltfpmntPfi

nnw

Kedoutlives

the "time to hedge against the inevitable devalua-

tion of the dollar is now, later may too late."

•

dollar

the

save

publicist advises investors to hedge by purchasing good

stocks and says

late

the dollar based

save

win

dividend-paying gold sleeks instead of bullion, recommends certain

now

price of $35 an.ounce for gold.1:.
However, last ditch efforts to

brings on a real financial crisis; and predicts a consequent gold
embargo will result in gold's devaluation to about $70 an ounce. The

•

■

the dollar in the form of gold withdrawals

It is too

has been cast.

price of gold; maintains it is but a matter of time, now rapidly running out, before

debt

Federal

the

staggering $260 billion, and with
private, commercial and all debts
totaling over $500 billion, the die

week

and

family would have ah
a year.
W yfty

income of $10,000

foreign af-

this

but

against

will

bring
retaliation
already dwindling
The United States as the

exports.

generosity

with

loo

tariff barrier.

High

this

1 b

i g ht,

Bargeron

taid

col-

Iris attitude,, is

consider this

between- him

and

He has

ference

claimed.

the

dif^

Nixon.

issue with him here, it is

My guess is that Nixon

l iege professor himself, feels to- would win out.•
his

wards
we

simply

year

Carlisle

committee chairman, and old
-

Here

rates such

interest

confidence, confidence but astute have had
foreign bankers do not read our
.up
"hot"

;

Mudl Hot Alohey

which Senator

world leader cannot shut but the
world

Rockefeller,

fairs. With the

our

committee

piles

professors, the
$10,000 for each

fellow
pays

' A
The most influential newspaper
here
in
Washington- frequently
,

advocates higher taxes.
Not so
instance, ~ j have been privy to about six many months ago when there was
high interest rates for- 0f these reports so far and each all sorts of suggested cures for
'claims against
statements but instead look at the
elgn claims against our gold sim- and every one of them says we the then recession, lower taxes
our gold reserve and our gold recold figures and facts that are re- piy piled up in the form of very must give a greater share of our were
being pushed by the Demoserve
itself is a slim margin of leased month after month. They short-term
Treasury bills that worldly goods to the undeveloped crats. Secretary of the Treasury
•only a half billion, which is the see a continued mounting deficit in could be quickly pulled out.
At nations of Jhe world. We must Anderson did some fast and cononly unmortgaged gold we own. our international payments. They present foreign holdings of Treas- tighten up our belts, give up some
yjneing talking with his fellow
Last year we ran an unfavorable see rising claims against our gold
ury
bills and certificates have of our leisure time and get behind Texan, Speaker Sam Rayburn and
balance of payments of $3.3 binreserve.
They see a dwindling rigen this year by $2 billion to a a general push to help the unde-. Majority Leader Johnson and
they
lion. When a country runs an un- gold supply.
They see mounting total of around $8 billion in "hot" veioped nations, attain what is agreed not to go for a tax reducfavorable balance of payments it labor costs and over-priced Amermoney.
This proves lack of con- called the good life.
tion unless they first * consulted
is represented by an increase in ican goods.
fidence in the dollar.
True they
Governor Rockefeller himself him.,.In this way the tax reduc-r
foreign liabilities against its gold
like
to
get the higher interest seems to be of this mind. Poli- tion agitation in Congress was
reserve
or
actual
loss
of
gold
V\c Have, outpricea uurseives
rates, but they are so scared of the ticians usually promise something stopped.
through foreigners pulling it out.
i have here in my hand a con- dollar that they want to be only good,
like continued peace and
Not only must we go in for inThe
situation
in
our
foreign fidential report from one of the in very short-term paper so that prosperity. Rockefeller seems to creasing expenditures to
help the
trade balance
of payments
this largest corporations in the United they could get out in a hurry. At be basing his campaign on what res^ cf the world but we have got
year has deteriorated to one of the
States that reveals the shocking the same time as a sure sign of Winston Churchill told the Brit- to step up our growth rate to com; worst levels in the history of the facts of how we have so outpriced distrust against the ; dollar,
for- ish people at a crucial period of pete with Russia. That is becomf
United States.
For the first six
ourselves out of world markets, eigners hedge.
In Great Britain the war.
• 1 .>
jng to be the national theme song.
; months of 1959 our exports were
Here is proof of where we lost today the United
States dollar
"All I have to offer you.
be Secretary of State Chris -Herter

therefore,

be-

Robert S. Nattell

foreign

•tween

releases

press

and

reassuring

cjue

study,

~
For

money.

OLir

irl

dollars.

billion

one

For

the year

:1959 the United States could have

staggering

a
.

tional
lion.
out

deficit

payments
will

This

interna-

of over $5 bitcompletely wipe

unmortgaged gold reserve
the dollar technically
bankrupt.
our

'and

leave

The United

with

faced

States, therefore, is
possible run on the

which

dollar

would

the

form of

heavy gold withdrawals,
Jhe Federal Reserve Bank has the
naive
view
that by keeping our
interest
interest

rates

extremely

Cn^
idea

high
mgn

"'VII

b"".')

".V,

being that by keeping their

claims here

at high

they would

interest rates
not worry about our

adverse balance of
view

will

bankers

shrinking gold

interna-

the

that

assumes

tional

payments. This
ignore

our

and mount-

reserve

tag

claims against it simply to
get a slightly higher rate of in¬

high.

too

way

United

generator
sale

For instance, the
price on a turbine

States

$900,000 .and

was

lost to

was

Germany

United States in relation to lower
rates of interest in othef foreign.
countries is a sign of dollar weak-.,

the

today

say

double that of $160,000. It may be
of interest to know that the Ger-

When

discover

that

there

are

to back their

serves

not

depositors in

bank

not

the high-priced American Laboi
f^at
h*'cth gets uv«
over fpo
$3 dn
an hour
nuut m.uk
for the
7

land got the order at 11 cents

not

the

out

and

put

their

get
in

the

are

bank

lower and

anything

■

ton

about

l itp

This

eigners
against

the

who
our

exact

case

have

gold.

United States had

huge

As
a

long

valuation,

wages here would have

claims
as

the

large unmort-

dollar. Now that

out-piiced

World markets and

heavy deficit in
payments
£-iy

gold

ourselves
are

our

may no

«« have k>

«o through

ther

deflation wringer in order to get
our Price structure down.
We

.in

running

international

longer have

reserve to back foreign-

try

sharp deflation in order

dollar.

save

j;educe

•

budget, and taxes in a tically iseverybody
knew—that the
uninhabited.
moon

The

American

inc

Labor-CIO

therefore,'just

Federation

American

working

for

matter. Srer^work"week'ta'ab?0rb*ttS

?nh,

tore,

a»v, v*-

null

uui

and

fthf V -

and

assurances

MI have received

letter from the

^ ^ National
Agricultural Chemicals
Association saying that on

™ tomatfnn

every

contaiuer of the weed-killing,
~

e-ancer
inducing +insecticide which
"
V—r
"x"

Ministration

ernment will pour forth words of

dollar?
in

take

wages, to

drastic
the

save

industry cut profits
lower

prices

sharply

SaW the d°llar? WiU POliti"

cians

and

the

over-valued

unions

Will

order

the

drastically reduce spending

raise

taxes

dollar?

will, not

order

save

They most certainly

And

even

they

were

willing to do so, it might end
bringing
onngin0

on
on

then

suddenlv

annthnr
another

Place

aftor the crop had been harvested.
•

;

embareo

ounce.

for

There are sophisticated ways ip
professional

many
ore

they
rise

now

the

orice

^old

rawed; In otaer'ivords, at that

time sophisticated investors were

von

of goM. « you

anticipating such

sibility. ^During

the

pos-

tide,. mngieiue and rodenticide act

accordance

111

past year •

most Sold stocks have shown signs
^ strength and have advanced

with

the

Miller

^J0 ihe Food> Drug and
) .-.-A.
.
" i

According to competent toxieolsomewhat in pdee but the big ogi^ts who have extensively stud.move

up.

ye(

nsy

opinion, has not *ied the chemical in. question, the
extremely small amount present

ie^a[iyo)30Uaht

in
With reference to safety and the on cranberries could not offer any
the^buying' of gold stocks, the two ^gnifieant risk to the consumer.
purchase of gold
on tnost important things are that a
They point out that tumors were
small margins through the Bank dividend is paid and that new ore found in rats only after a lifeof No,va .®c.otia; However, when ^erves are being continually de- ing e.of
feedi g on a 100
diet times
containapproximately
as

ljon^

Canada

can

and

stored

this

there

by
certificates

there

interest

are

veiopeu,

charges and storage charges and
if the rise in the price of gold is

Tiie test of the dividend paying Canadian gold stocks are

delayed much longer than

Giant

Hcipate, then

you an-

Yellowknife

Gold

Mipes,

would

suffer Campbell Red Lake, Kerr Addi-

iarT^aifes7011 ^ ^

gold

you

and
In my opinion
a
much wiser mines are Free State Geduid
me
to
thing to do would be to purchase. Western Holdings.
The tim

good dividend-paying gold stocks,

In that case you would

depiession

invest-

hedging against what
believe to be an inevitable

are

/was

Rise' already

Price

Gold

ceiving dividends and

Apulp":"!

"
;

Hedging

you

Will

reductions

S iftt
fi.ayed
the denrVeN C°n/hdrnCe t0
have

it.

be reduced drastically and

for-

It lg

cur-.

nnw

JvIThp Hniilr
save the dollar from de-

stand for
Talk Will Not Alter the Facts

true sign

likely to around $70

■

here in the United States Will not

principal is safer.

that

was a

ct thue and time seems to he run- iimlts of
J of automation.
ning out rapidly, before the run
Senator Jackson, of Washington,
Gn
the dollar and
rapid with-;s a nrominent voirp in forctrawal
drawal ol
of gold out ot
of tlie United—-1—United nion affairs
~i
1.. attacked
has shamlv
lw1

AnH

money

another

where interest rates

saved

kets?

•

gold was ralsed the dividend pay- .When the proouct is used as dion
the
outflow
of
gid which inS §old stocks, went up on the rected no residue will occur It
How can anyone with- a straight, then in turn will result* in the average of around 500% in
price*0^^r^sl^vthatJ:h®
face claim that we haven't out- dfcvaluation-■ of the dollar and a'most 01 '^mh occiured one to two was »®Si^red by tte U S
Priced ourselves from world mar-■ rise ;n the price of gold-moat Teari -.betore- .Oms price of gold^

prefer

never

confidence

bank pavs a high rate of interest.

They

where

rather

in the United States
lost
out:
our
price was- nearly
40% higher at 15 cents a pound.
pound,

loorc

recalling with pride that he ahead of them, in fact, in everyboosted taxes in New York. He thing save missiles and space cjeEahi tkat we should quit bend- velopment. In the other fields of

SS&SSf.SSu.the

re-

deposits, they

whether

care

Brazil

of its weakness.

•

terest.

Switzerland

are

rency, but

man

•

on/i

The lowest rates of interest

ness.

was

labor producing these prodrapor
producing tnese. proaucts gets the equivalent of around
50 cents an hour as compared to

curoaf

our efforts towards & shorter science, notably medicine, we far
work week and goiin for increased exceli them, The Russians put all
the currency is the world's sound- P^odugtion. It is true that he has their eggs in one basket. So far
est.
Sky-high interest rates in
I* we do this we can they have found out what prac-

whose

only $500,000.; Ger'r
many also got the orders for in.*duction motors at $80,000. each a£
against the United States price of
price

HInnr]

"ic

investment.

caily,

the

last

time

re_

income

a}~0' historitne

price

hedge against the inevitable de
yaluation ,of the dollar is now,
l9*61"

may

be too late,

much of the chemical
found

+An address by Mr. NatteU befrre the

has been

the contaminated lots of

cranberries, and that cranberries
nluie only a small fraction of

* b!1.^

V. K. Osborne
V.

opened
Vesey
under

•

Boston Economic Club, Bcston, Mass.

Osborne
a

the

Opens

Sons,

branch

Street,

~ T", V.T
Kolodkin.

New

Inc. has

office
York

direction of

City,

Robert M.

Volume

190

Number 5902

By Hon. Ray M. GidneyComptroller of the Currency

gsMjane matters of interest to national
the

proposed margar

Banking Act;

legislation to various factors

^.problem of equalization'of t*e tax burgsn
earned about the

national

;

involved;

men

who head

and

staff

<•/

dered

t h

fjgfa
/

'*?
X.

and quality of

sets of nation-

ported
June

-«ay

■

1959

Gidney

;

the

•

51
84

020,000.

the 85th

helpful advice of

num-

Representatives
Brown's

these

.on

Subcom¬

bills.

Repre¬

Multer„ of

'735i"

particularly helpful.

"I want to express my personal
appreciation to the many bankers
throughout the country who re¬
sponded to our calls for assistance

a little over a
passed since The

willingly

so^

vince

the

and

helped

to con¬
of the merits

Congress

of, this legislation."
„,

because there has been so much

what is

amen. to

say

well

said in this bulletin, and I should

activity and so - many.. develop- like
to express appreciation for,
satisfaction * in
the
manner * in-S.ments in many fields. It has been
"the fine work that Ben Corlett,
which it is carrying- on its - well a good year for the national bankJerry Brott, Charlie McNeill, and
established tradition of outstand-/ ing system in the field of legislaMonroe Kimbrel did in assisting
ing service as, we approach' the-tion, of -successful operations, of
with this legislation and for the.,
day, now only 3V2 years in the growth in assets, and in prestige.
interest and support of President
future, which will mark its 100th In- all of these, the record has been
Lee Miller.
anniversary.:,.
v »1 favorable.
The legislation affectbanks, and

take

well

can

are

heartened by the enact¬

ing-national banks enacted at the ment of the three bills I have
?essl?n,.0' 'i16 86th Congress mentioned for their actual content
will
.definitely helpful, as it /and for the manifestation by the
does much to smooth out parts of Congress \ of sympathetic under¬
merger, or purchase.
I am bring-..the Federal banking statutes which standing of the problems involved
ing this tabulation down' to Seot.'-needed modernizing and clarifijin adapting legislation affecting
30, 1959, so that it will be avail-;catl0n> and also to provide definite national banks to the needs of the
:Last

year,

movements

gave

figures

for "

and

out-of

the

into

national

banking system through
conversion and by consolidation,

able

for-: reference

The

-repent

improvements

the

powers,

present day. I would like to repeat

banks. We should : all .-that we are deeply and genuinely
national banking system/
•/
S*ve very great credit to the Con- grateful to the Committee mem¬
From
time
to
time/ the Comp-- gressional leaders who studied so bers who gave close and produc¬
troller's office rec:ives.expressions carefuily and understood so well
tive study to the provisions, of
of
apprehension that. too, many the needs of the banking system these bills so that when their con¬
new
bank
charters
are
being that they achieved passage of this clusions were placed in final form
granted
Our onue
office endeavors
endeavors tO'important and helpful legislation.*
granteq.
L>qr
they could be promptly enacted
,to:..
trend

has

been

favorable

the--

national

j ghQuld like to

sound

make

careful

decisions,

and

based

thorough

.on

investiga-

quote from-The
Bankers
Association's

American

Special

Washington

Bulletin

of applications for charters.

the

1958,

year

organizations

of.

now

by the Congress and signed by the

the

and

1959,

national

banks

Senior Vice-President Ben

tion of ^National Bank

at gn

;./'
-

concerning the enact-

Conversioas

Nation*' B^nks Convrrte'l ./»

Two

•

Number

1950—_________

19.51

1952
r

1955

1956

—

_——___

1958
1959

—_—__w_—

Sept.

30.

Number

.$50,000,000

-0-

14,000,000

160,000,000-'

$3,000,000
-088,000,000
21,000,000
19,000,000

23,000,000

62.000,06-0
120,000,000

29,000,000

,103,000,000
825,000,000

$874,000,000.

Transferred
"

v
.

„

1930

—.

1951

1952

____

__________

1953

;

the

Number

$53,000,000

272.000,000

.22

934,000,000

309.000,000

78,000,000

,,.24
65

351,000,000
-362,000,000
7,163,000,000
;
179,000,000
321,000,000
471,000,000
2.64,000,000

1956

385.000.000

576,000.000

990,000.000

1957

55..

1958

1959 to

Sept.

406

42'
...

725,000,000

$5,208,000,000 "

„

Committee

Senate

the

include 'transactions

effected

wj'bin

Uie

page

ACT

Deposit Insurance Act to provide
safeguards against mergers and consolidations of hanks
which might lessen competition unduly or tend unduly
to create a monopoly in the field of hanking.

tion

(c)

of section

the

Federal Deposit

Insurance

Act

amended by

striking out the third sentence thereof and substituting
in. lieu thereof the following: "No' insured bank shall merge or
consolidate with any other insured bank QL.4h:ectly or indirectly,

.acquire^ the assets of,
in,

or assume

liability to pay -any deposits made

other insured bank without the prior written consent (i) of
Comptroller of the Currency if the. acquiring,, assuming,- or
resulting bank is to be a national bank or a district bank, or (ii) of
the Board of Governors of the Federal Reserve System if the
acquiring, assuming, or resulting bank is to be a State member
bank (except a district bank), or (iii) of the Corporation if the
any

the

acquiring,

assuming,
(except

insured bank

resulting bank is to be
district bank). In granting

nonmember

withholding
subsection, the Comptroller, the Board, or the
the case may be, shall consider the factors enumer¬
a

consent under this

Corporation,

ated in section 6 of this Act.

In the case of a merger, consolidation,
acquisition of assets or assumption of liabilities, the appropriate
agency shall also take into consideration whether the effect thereof
may be to lessen competition unduly or to tend unduly to create a
monopoly, and, in the interests of uniform standards, it shall not
take action as to any such transaction without first seeking the
views of each of the other two banking agencies referred to herein
with respect to such question. In the case of a merger, consolida¬
tion, acquisition of assets, or assumption of liabilities, the appro¬
priate agency shall request a report from the Attorney General on
the competitive factors involved in the merger. The Attorney Gen¬
eral shall furnish such report to such agency within thirty calendar
days of the request; Provided, however, That in case the agency
finds an emergency exists the agency may advise the Attorney
General thereof and may thereupon shorten the period for the
Attorney General to report to ten calendar days: Provided, further,
That where the agency finds that an emergency makes necessary
immediate action in order to prevent the probable failure of one of
the merging banks, the appropriate agency may act without obtain¬
ing such report from the Attorney General: And provided further,
That the Comptroller, the Board, and the Corporation shall each
submit to the Congress a semi-annual report with respect to each
merger, consolidation, acquisition of assets, or assumption of lia¬
bilities approved by the Comptroller, the Board, or the Corpora¬
tion, as the case may be, which shall include the following infor,'mation: the name of the receiving bank; the name of the absorbed
bank; the total resources of the receiving bank; the total resources
of the absorbed bank; whether a report has been submitted by the
Attorney General hereunder; and .if approval has been given, a
summary of the substance of the report made by the Attorney
General, and a statement by the Comptroller, the Board, or the
Corporation, as the case may be, in justification of its findings/*
Passed by the Senate May 14, 1959
Attest: Felton M. Johnston
.

Secretary.

;

This is not

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

•

Gibraltar Financial

Corporation

of California
Capital Stock
,

„

($1 Far Value)

every

85th

bank

tion that

part of The Fi¬
Act, S. 1451,
Congress.
Like the

vised

between in?
implies recogni?

The

and

banking is a super¬
industry.

regulated

three

Federal

Kidder, Peabody & Co.
Goldman, Sachs & Co.

Smith, Barney & Co.

make

Bache & Co.

applicable.

They^would have to take into con-,
sideration the usual banking-fac¬

White, Weld & €<>►
Incorporated

Paine, Webber, Jackson & Curtis

Dean Witter & Co.

Francis I. duPont & Co,

A. G. Becker & Co.
Incorporated

supervisory

the standards which the amended

District of Columbia as,.

the

agencies would have to confer and
work- out desirable application of

Copies of the Prospectus may be obtained in any Slate in which this
is circulatedfrom only such of the underwriters, including
undersigned, as may lawfully offer these securities in such State.

announcement

merger

tion and that

strong banking system
is vital to the welfare oif the na¬

Price $19.25 per

passed, by
of the 84th

Institutions

sured banks..

249 $10,176,000,000

-the Comptroller of the Currency is' the supervisory authority .for both national
and District Banks.
*"
- >
' -

and

S. 3911

statute* would
not

passed by the Senate May 14, 1959

■

predecessor bills, it would amend
section 18 (c) of the Federal De¬
posit Insurance Act to require the
approval of the appropriate Fed¬
eral bank supervisory agency for

Assets

____

Purchase*

National to State-

Asset?

passed by the Sen-

Continued

One is the bill having to do
It was passed

nancial

$179,000,000-

$260,000,000

To amend the Federal

by the Senate as S. 1062 on-May
14, 1959. [Text of bill herein.—Ed.]
As
introduced,
the
bill was
identical with proposed legislation,
which was favorably reported by
the
Senate
Banking
and .Cur¬
rency

-0-

General's * Report

"Under the amendments included
in the bill

8,000,000 13,000,000-

1955

'Does
„

-State to National
Number

141.000,000
' 1,109,000,009
■" 441,000,000

1954

Consolidation, Merger,

Attorney

light of the

......

with bank mergers.

4,000,000

3<
-

gress.

Assets

Legislation.

important legislative

Congress and

;

Text of S. 1062

problems, will be up for considera¬
tion in the coming session of Con¬

Assets

-11,000,000

♦

1957

Assets

1953 ____,—3
1954

„

public interest.

considered and in the

325,000 Shares
Merger

very

.into jstate-Chartercd Banks

institution

included.

into National Banks

required by this year's legislation

St^tc-Cljar'c-rd Baivks C;««ivi,rtcd

•»

con¬

early, date with the changes

Bank

have to

competitive aspects
the merger.
This means that

full consideration would be given
to all the factors which should be

1959 to Sept. 30, newhment of Bills H- R. 8159 and H. R,

year

would

community, the
upon the particular banks
involved, whether- the resulting

Related Statutes"-will be reissued
:

C. Corlett,

published compila¬
Laws and

Our recently

endorse

primary heartily the statement made there-

totaled 18, and of state banks, 74;
in

Sept./15,

They

sider also the

President.

of
,

tion,

bank.

:
Be it enacted by the. Senate and House of Representatives of
the United States of America in Congress assembled, That subsec¬

Con¬

and-Edg'ar Hiestand of California

It is truly a great system

.'New York, Joseph Barr of Indiana,

63•

203

Act

sentatives/Abraham

74 ••

period of
has

of the

first

Without Senator Robert¬
initiative at that time and.:

sideration

64;

•

that

upon

needs

sponsor-

were

Currency Committee was also of
great assistance during the con¬

87
*

bills

part of The Financial

.of. other

were

*The

effect

Sen-'; r-.v^

mittee of the House Banking and
>

Helpful Banking Legislation
and/:

of the

under his

Representative

*. _L_ '

effect upon the
banking system,
the convenience

and

ber

50
'

r*: "The

the

table to the stockholders of each

skillful guidance during the
closing days of this session: of the ^
Congress,/.action, could» not have ;
been completed this year.: /
/

supervised by American Bankers Association met
the Currency, together in Chicago in late Septotal of $126,947,'—Vtember, 1958, seems a long time

Comptroller

^msv/i.ir^

effect

2"lofAthe

his

Columbia

$692,229,000,
of

gress.

sons

47,''

•

laws

Robertson, '
Banking
and^

the

was

Institutions

18
•;

/*•

Sept: 30
.

for non-national banks in the Dis-.'>rear

trict

of.

these

drafted

1958,

date'were $126,254,791,000

call

' '16
-

two

No:

Currency Committee

* State

9 ;v,

1955_________ /

« ■.

the

*"•"»-

1954.

■HMyH■

41 v

1959 to

re-

the

ship that almost all of the provi¬

1957-„_i___c-

as-

al -banks

v»

to/Senator

ate, for it

National f

V; '. 1956.^

assets.

total

) -/'•

:>/

1852:.

JK» '%s'A V

volume

The

given

/.■.-<•

G953'_'

the

their

such

tors

•

r*w>'l951__^-__jL/_

public, and in
the

■

1949_I_^iZIZZZr

and borrowers

:1950i-

i r

these

/Subcommittee

•,

and

major accomplishment which

Chairman

our

Of Banks' 1048-1959

depositors
and

Nunvbe* of Priipary Organizations

the

..r e n

•

the

,of

scope

the r

efforts that should ba made*-*'

measured

by the character and ability of the

service

and

86-230

: House, Banking
and -Currency
Committee. Great credit must also

lty to render service

rising spiral of inflation, the administrator of

banking system comments

national banking sys- national banks totaled 18, and new
high point in its capac-- state banks totaled 63. - A ' //

,n^

soundness of the

be attributed to

sions

the

tem is at

wRl be capably man¬
Chairman of the House Banking aged, soundly capitalized, and in a
and Currency Committee and Rep¬ spund
asset, condition,
and
resentative Paul Brown, Chairman whether the plan is fair and equi¬

the banks. Con-.;

among

Laws

large extent
the outstanding leadership of
Representative Brent Spence as

banks that

to maintain the soundness of out
money#

Today

consideration given

can

Mr. Gidney. discusses modernization and

year,

National

Public

"Enactment

Burden

clarification of

86-251:

transpired in the past

(2207)

8160

(•

fV," -<•' ''V1 i\W

The Commercial and Financial Chronicle

Banks Victims

*:•/ Summarizing

Hayden, Stone & Co.

E. F. Button &

Hemphill, Noyes & Co.

W. E. Button & Co.
November 24,1959.

Company

Shearson, Bapimill & Co.
'

The Commercial and Financial Chronicle

(2208)

Then

standard.

Continued from page 9
Some years

will be pros¬
others depressed. This
to overlook during periods

perous and

either

boom

or depression.
It
unlikely that the fluc¬
tuations will be more pronounced

is not at all

over

the next decade than

the years since

While

(9)

during

World War II.

certainly hope it

will not deteriorate, it is not likely
that the political climate will im¬

for the

prove

I do

Long-Term Yardsticks
view

the

tronic

How to Appraise

not

expect, within our defi¬
nition of long term, that he will
be exterminated
by government
decree; but his tax burden is not
likely to ease either directly or
indirectly through reduction of
corporation taxes.

Objectives

fields—I realize these are
Management
omnibus words—offer examples,
which frequently
/o\
(2) Areas where good managecomes
up is,
"How management
ment can he effective
While enod
:an
be
appraised?" This is not
.•asy for most investors to do. I
.night explain how our organiza¬
tion
approaches
this
problem. regulated industry,' management
Here one is dealing with value
."judgments, which can be misled
by sheer personality.
There are
steps which can be taken to assure thing else being equal.
that an appraisal is sound.
(3) Areas where possession of
(1) Get acquainted with the top large raw material reserves will

stockholder.

common

conclude

naming 20 companies which,
considering all the diverse factors
of the present situation and how
conditions are most likely to unfold in the years ahead, deserve a
place in a common stock portfolio
able attribute. That would indeed formulated
at
the
present time
be
desirable
but
is
impossible. with long term objectives.
Any industry and every company
must face increasing competition.
Areas of Opportunities

With Long-Term
is easy

question

unpredictable

world which awaits us, it is useful
to consider briefly the yardsticks

Jries which will in general per-

—-—

form below average in the years

An address by Dr. footer, before the
Mid-Contment T™®4 c. nference of the

ahead. I well recognize the inge-

Trust

*14*lty

American businessmen

one

must

use

appraising

become

at any
to

Good management
particular time is not hard

you

tion

are

management

and

(3)

successful

record

research

and

Visit

plants

stallations.

for the future.

(2)

organization
and
permit
to see what kind of people
coming up through the ranks.
In

acceptance by management of the

tion.

departments.

pressing

forward

(4)

other
to

research.

sure

the

most

will not attain

in¬

Areas

benefit

comes

learn¬

.desirable

■

where
from

mcreas-

the

A31canescipenHstspa?e

rising real

the hands

in-

increas-

the

American

ttSTSS

Nov.

For Pres. of IBA

the

outlook

the

for

James

oils, radio and
shoes, sulphur,
riety stores. Back

partner in W. E.
Hutton & Co., New York, has been
nominated for President of the

following

there

Investment

Bankers

provide

an¬

.by1

William

Kerr,

D. :

current:

President
the

of*,

Associa-

tion, and part¬
B

ner,

a c o n,

W h i p p

specific,

companies

cross

was

nounced

America,

TV broadcasting,
tobacco, and va-

even

are

Association

again to the positive f'ac-

t0r; and to be

Lee,

which

Co.,

section of Ameri-

Chicago,

Illinois.

can
industry. All 20 have good
particularly of the con- growth
prospects for the years
variety.
ahead and should grow faster than
(5) Areas where highly efficient the dollar
probably will depreciequipment, rather than a large ate jn
purchasing power. There are
proportion ot labor, can be utilmany other fine long-term invest-

foods,

minees

for Vice-Pres¬

veruence

to visit the research

Bankers

Michigan,

James Lee Named

work, the position of a poor mdustry can be improved>
However,

investor

ing number ot consumers. An example would be highly processed

ing about the company, you can
ascertain a great deal about the
spirit and drive of the organiza¬

of
the

necessity

and

addition

ing scarcity value.
can

management training and devel¬
opment program is a good omen

achievement in

species

whole

vestor has to look ahead. A tradi¬
fine

This gives you a feel of the

ment.

identify, but the long term in¬
of

reserves

Detroit,

swsvsw rg&fi "*

manage¬

ment program.

Division

Association,

fields, as conditions appear now,
increasing significance js jess favorable than those I mencompanies whose common stocks people in tiie organization—the
because
of
increasing
scarcity
officers
and
tioned earlier: Automobile compoprincipal
department
should be used in a long term
value or where supply, at probheads.
nents, most aircraft manufacturers,
portfolio. As I see it, these are:
able prices, will not continue exapparel, baking, lead mining,
(2)
Get
acquainted
with
as
(1) The company should have a
cessive
in
relation to rising deleather, motion pictures, small- to
successful
management develop¬ many people as you can in the mand. As an example, large timber
medium-sized domestic integrated
second and third tier of
which

Thursday, November 26, 1959

Devices: Minneapolis Honeywell; chase most stocks, including- those
Molecular Electronics: General I mentioned specifically, at lower/
Electric, Texas Instruments; Nat- prices than prevail in the market
ural Gas and Natural Gas Liquids: today. That is a risk which must
Texaco, Phillips, Texas Natural always be accepted. In fact, the
Gasoline; Plastics: Union Carbide, particular stocks 1 nave mentioned
Hercules,
Phillips;
Recreational were chosen with this possibility
Equipment: Outboard Marine, in mind. The 20 stocks selected
Brunswick-Balke-Collender; Spe- would not be invulnerable to a
cialized Labor Saving Equipment: general market decline. I
would,
Clark Equipment, American Ma- however, expect them to
go down
The
trust
investment
officer
As to a few broad areas likely chine & Foundry, Cincinnati Mill- less and come back more
than
would be living in an eleventh to
provide investment opportuni- ing Machine Co.; Special Purpose stocks in general if such a decline
heaven if he could have a port¬
ties, I would suggest the following: or Unusual Metals: International were to occur. A balanced portfolio of stocks which had all the
(1) Areas where scientific prog- Nickel, Union Carbide, National folio concept, with percentages on
attributes. He well knows he will
ress
is likely to be rapid, and Lead; and Synthetic Fibers; Du- commons varying with the outnot have that good a life but can
therefore will provide new prod- Font, Dow, Union Carbide.
look, is usually sound and, it apjse
these yardsticks as reference
ucts and new investment opporSince the matter nearly always pears to me, particularly sound as
points.
*
tunities.
The chemical and elec- comes up, these are a few indus- conditions appear today.

Common Stock Portfolio

cillate.

shall

...

ident
be

(five

elected)

James J. i-ee
were
previ¬
Compare the record of the
ously a nin building earning
aroic
wmvn
power with other companies in the
,„ni
ment opportunities of course; and nounced: William M. Adams,
(4) A minimum of vulnerability industry. This provides a docu¬ from the
nf
'■ aiV SUle SOma haV®
?"nd p,?r" Braun< Bosworth & Company, Deto price regulation or other forms
mentary record of management energy
otner
new
enerey or
sources
of
companies possibly smaller trolt; Warren H. Crowell, Crowell,
or otner
new
souices
ot
of governmental
as
control, except success
&
compared
with
the energy. Sometime within the ex- ones, which will outpace these. Weedon
Co., Los Angeles;
where
there
However, these companies are of Edward Glassmever~ Blyth &
may
be offsetting achievements of other companies.
perience
Of most people in this u\ph nualitv and ran
servp a
ffnod
^awaTra
Hi
Wr
benefits. An example of a regu¬
r
!
/T
(5)
Check
with
competitors. room atomic enerev—and aeain 1
g q
?• 7 M
®
a good Co inc>> New York; George A,.
lated
industry
with
offsetting This can be most helpful if you am using an omnibus word-will PurPose; Tbe llst:
using an omnious wora
win
AJrtlmmum £°m- Newton,
G. H. Walker & Co., St.
benefits would be an electric util¬ are well
pany of America, Corning Glass,
t 0imRobert O
Shmard
Presenough acquainted with be
earning profits for investors. p0w
ity, which has strong growth char¬ the people so they will be frank
Chemical, General Electric,
'
Such devices as the luel cell also
cott, Shepard & Co., Inc., Cleve¬
acteristics resulting from a mo¬ with
General
Foods,
General
Motors,
you.
Checks with customers must be
land.
considered, both as pernopoly position in good territory and suppliers also can be fruitful.
Goodyear, International Business
haps a source of earnings and,as
Mr. Adams has been nominated
and where the regulatory climate
Machines,
Merck, Minneapolis
It should be possible for an ex¬
competitor tor present sources of
for his third term; he has been
is favorable.
Honeywell, Minnesota Mining,
perienced person, after taking the propulsion.
Vice-President
since
December,
(5) A minimum of vulnerability suggested steps, to have a clear
Parke-Davis, Procter & Gamble,
.
(7 Areas which can supply unto changes in fashion or taste.
Seals Roebuck, Standard of New
1957concept of the management skills usual, high value
materials, equipjer£ey
Texaco,
Union Carbide,
Nominated
for
second
terms
06) A minimum of vulnerability in any company and the probable
ment, or components vital to key
united
States
to sudden changes in
Gypsum,
United were Mr. Crowell and Mr. Glasstechnology. continuity of present strength or industries. I have in mind such
states Steel, and Westinghouse.
weakness.
meyer who have been Vice-Presitems as control devices, unusual
(7) A successful record of tech¬
'
6
Adents since December, 1958.
In .suggesting how a common
•
nical excellence and a
strong
stock
portfolio
might be 'con¬
may , Present Stock-Bond Ratio Thf Associatioil wm act qn the
position in an industry where
^
Some will immediately point out siate at its Annual Convention,
technical excellence is important. structed under present conditions,
(8) Areas in an unusually
at
permit me first to mention a few vorable
29-Decv 4,
1959, -at- the
position to benefit from
(8) A degree of diversification,
a
broad areas which should, in
rate of
my
but not. So much overdiversificaopinion, be given much weight in hfph
i? return equal to that which can be Nomination is tantamount to election that the company is difficult
obtained on high quality debt is- :
selecting investment opportunities.
The new
and The
for management to comprehend in
Then I shall name a few indus¬
all its aspects.
brackets where !^es' This is true indeed at this Vice-Presidents will be installed
:
tries, or segments of industries,
spending for consumption is great; There
are several
areas which which
DeC* 3*
;
' J
should do especially well
1
may appear to
have been over¬ in the years ahead. Since the sub¬
Ram.
...
T
..
•. \bonds are at highs for nearly three
looked. For example, I might have
ject always comes up, I then will
possible to
included a minimum of

(4)

(3) A minimum of vulnerability

company

to strong unionism.

atnmX

develonrnen^

o[he?

chhfJiV

highly automatic

fa-333^^ P0fHese
'tocks L 'not prov3

^nrnmp^*^fptvenS'theS

its Annual Convention,

?°V'

populat\onTivage*

PresTdenT

•

vulner¬

ability to competition

desir¬

mention

few

industries

performance probably will be sub¬

OFFER

Another Set

1939 Inclusive

Write

1908-1928 Inclusive

Phone

—

REctor 2-9570

Beck, c/o Chronicle, 25 Park PL, N. Y. 7

& Co.

within the definition^^of long term,

rapid be

payjng

higher

dividends

than

<special to the financial chronicle)

for'any deJine6whichCrrasonablv they al'e t0day- A11 .s^ould w.ithin CHICAGO, 111.—Arthur E. Lindbe exncrlcrl infcSi
a few years be ProvldlnS a higher burg has become asscciated with
£S<uSl£S^th?n£t S^eS!-^ed0fonr^dbSSS and they°ali A' C AUy" a"d
ades, assuming that the Russian
3m X fhfs
the av3e
South La SaIle Street. Mr. LindBear and his Chinese friends
IhXyears They should p?ovlde berg was formerly manager of
main tranquil.
can

Names

Companies

over

I offer the

greater rewards in the form

capital
It

also

appreciation.
will

noted

that all of these companies will do
ser; Atomic Energy: Union Carbide, Westinghouse, General
Electric; Convenience Foods: General Foods, General
Mills; Drugs:
Parke-Davis, Merck; Electronic

Communication

Business

and National Cash

Temperature

Machines

Control

Systems:
Trane, Carrier; Industrial Control

of the

department

syndicate

office

Lehman

Bros.

the

{VI.

-tti*
1 _
P llilCy
r\

KvllPSbV

LAHfL

W llll

LO.

<SL

thls wlU be increasingly difficult, VJ
'
in the years ahead. Competition
(Special to The Financial Chbonicle)
for sales, management, and scienCHICAGO, 111.—Harold,JVL Finley
tific brainpower, will be intense.
There will always be small com- has become associated with H. M.
panies which move forward vigor- Byllesby and Company, Incorpo¬
ously, but I feel strongly that the
rated, 135 South La Salle Street,

and Guidance companies selected for my list will
Equipment; General Electric,RCA,' be growth leaders in their fields.
Westinghouse; Electronics ComIn conclusion, my task has been
puting and Accounting Equipment:- to discuss only the formulation of

International

the

Chicago
that

following to you with
particular companies°as examples. Bst of companies contains no surI merely mention these
companies prises. We all like to find promisas
examples, rather than specific 4nS small companies which will
recommendations; although I feel grow into big ones. In my opinion
well—Aluminum: Alcoa and Kai-

in All

WHICH SET INTERESTS YOU?

Edwin L.

even

FOR SALE

Approximately 130 Volumes

mould

Commercial and Financial Chronicle's

indi'iQbdpii
industries

re¬

2 Sets of

From 1895

A.R.LlIldbUrgWlth
A. C. Allyn

fhesp
these

EXTRAORDINARY

***.

se.e/t a few indu'hie

where

Exchange.
formerly

stock

portfolio under
conditions.
It is not in-

common

present

members

conceivable

that

the

trust officer may be

investment

able to pur-

Trust

the

Midwest

Mr.
with

the

was

Chicago

Title

Company
...

Stock

Fin ley
and
t,

prior
"
„

thereto was with Lamson Bros, ot
Co.

Volume

190

Number 5902

The Commercial and Financial Chronicle

(2209)

THE MARKET

still listed

AND YOU

...

but

WALLACE

coal company
to where

has diversified

the

benefits

rialize.

begin to
-

mate¬
-

its fuel oil business and truck¬

STREETE

ing subsidiary
for

about

45%

ton's

coal

each

fifth

Interesting

account

Home

"profits,

combined.

business

Ohio Valley IBA
Elects Oificers

Appliance Item

The home

Pitts-

another

appliance section CINCINNATI,
that

nual

hasn't

been

Ohio—At the

An¬

Meeting of the Ohio Valley

is
also
High selectivity, some profit- approaching 5%. Yet so far
Group, Investment Bankers As¬
taking in electronics occasion¬ this year the issue has swung thriving. Coal produces only striking any sparks and sociation, officials elected for 1960
were:
a
little better than a fourth Whirlpool, which has held in
ally, and some stirring in the over an arc of only around
about a 10-point
Chairman:
of
total
range, offers
aircrafts
gross
characterized
income, but
the eight points, or 2%.
Ralph Elam,
a
yield of a bit better than
around half of profits.
stock market this
The
❖
❖
week, but
*
Sweney Cartcash payout is a modest $1.20 4V2 %. Yet this company
much of the list was
wright & Co.,
merely
Washington Gas, moreover, but this is supplemented nor¬ through acquisitions has
Columbus,
lolling without any clearcut is a
Ohio; 1st Vice
company that has shown
mally by 5% stock which is grown to the fourth largest
determination to do anything
C h a i r m a n:
rapid growth and has indi¬ expected to be continued as operation in the home appli¬
decisive.
Henning Hillcated
that
it
is
ance
expansion the company builds
*
❖
❖
field, outpaced only by
iard, J. J. B.
up
its
minded.
It has
the
applied
for
Hilliard &
cash through next
giants—General Electric,
A measure of the standoff
year. Earn¬
franchises in new areas in ad¬
Son, Louis¬
General Motors'
Frigidaire di¬
ings might reach $5 this year
nature was the fact that.plus
ville, Ky.; 2nd
dition • to
acquiring Shenan¬ and company estimates indi¬ vision and Westinghouse. Its
and minus signs came within
Vice Chairdoah Gas Co. to add around
most
.

half

dozen

matching

cate

thousand

square

miles

that

to could

Pittston

year

recent

the

acquisition'

was

man:

Harry

refrigerator activities of

O'Brien, W. E.
doubling
Ralph Elam.
Hutton & Co.,
its service area in one swoop.
Servel.
that showing. Such
week's final session when
earnings
*
*
*
Cincinnati,
Its sales have been increasing
would call fof a reappraisal
there were only five more ad¬
Ohio; Secretary-Treasurer, George
at a rate of better than 15%
Almost two-thirds of Rinker, The Ohio
of the present dividend
Company,
Col¬
vances
than declines out of
policy.
per year, its revenues up no
Whirlpool's sales are to Sears, umbus, Ohio.
❖
si:
❖
more than 1,000 issues.
less than 81% in the last five
Members of the Executive Com¬
Roebuck, but the company is
*
sis
❖
As a group the stores stocks
mittee will be:
years.
moving vigorously to broaden
Milton'

exactly,

last

repeat

come

close to

Rails

were

nounced

rather

drag

market and their average con¬
tinued to sag into new low

ground
suffered
when
down

the

They
immediately
year.

almost

the
but

mills

steel
so

have held in

pro¬

Farm

the general

far

have

shut
failed

utterly to reflect the fact that
are
humming again.

the mills

Equipments Shunned

better-known

even

International Harvest¬

name,

has held in

range of a
points so far
this year, depressed in part
by the general antipathy to¬
ward farm-equipment shares
although half of Harvester's
sales are from motor trucks,
er,

dozen and

half

except

narrow

higher-priced

range

its sales base
among consum¬
ers

Trost, Stein Bros. &
Boyce, Louisville, Ky.; William
Alden, Jr., O'Neal, Alden & Co.,

generally. It has been
meeting with enough success Louisville, Ky,; Howard Banker,
C. J. Devine & Co.;
Cincinnati,
so that while
appliance sales Ohio; Gordon
a
range of a score of points.
Reis, Seasongood &
slipped generally through the Mayer, Cincinnati, Ohio; Jack
Penny has racked up a good
recession, those of Whirlpool Nida, Merrill Lynch,,Pierce, Fenner
&
growth record over the years, rose consistently. The
Smith, Columbus, Ohio;
slight William
Sanders, W. E. Hutton &
although one of its newer drop in earnings last year was Co.,
Columbus, Ohio.

Penny which has moved

due

switches
show

over

more
isn't
expected to
in earnings until expanding

the expenses

and

of
modernizing

Speakers

at the
meeting were
Kerr, Bacon, Whipple
& Co., Chicago,
President, Invest¬
•

William D.

than to any sales resistance.
next year. That is the
expan¬
ment
Bankers
position particularly heavy ones
Association
of
With the expanded and im¬
sion
of
its
credit
where the big demand cent¬
plan to its
to
test
the
America, and Professor Raymond
recovery
peak
proved facilities, the company
Its
reached early in the month, ers.
agricultural equip¬ key stores. Charge accounts
Rogers,
New
York
University
has shown wider
profit mar¬ Graduate School of Banking.
which is about halfway be¬ ment accounts for only little and installment credit were
tween the 1958 high and the more than a third of the total. started
gins this year and final re¬
experimentally a year
Vfi
sis
!•:
sults are expected to double
Form Walter Marks Inc.
September low. A breakout
ago and results apparently
on the
(Special to The Financial Chronicle)
i
upside might help re¬
those of last year and
Informed estimates
of
go on
have convinced the company
LOS
build confidence, although it Harvester's results
ANGELES, Calif. —Walter
next year to an even better
during the that it is a
valuable sales
N. Marks, Inc., is
seemed generally agreed that fiscal
engaging in a
year that concluded last
boost.
But the cost of expand¬ showing.
securities business from offices at
not too much
month
progress would
indicate
that
sales

Industrials

were

[The views

3460 Wilshire

Boulevard. Officers
is more were a third
expressed in this article
higher and the ing the program will be a
do not necessarily at any time coin- are:
Walter N. Marks, President
heavy tax- projection indicates that prof¬ brake on this year's
earnings, cide with those
loss selling has abated.
of the "Chronicle." and Treasurer; Walter N. Marks,
its doubled. It, too, has a yield
but paves the
way for a good They are presented as those of the Jr.,
*
S'iS
Vice-President, and D. W.
approaching 5 % and the high
author only.]
Marks, Secretary.
The utilities were neglected estimates of its probable earn¬ comparison next year when
for the most and the average ings this year and next indi¬
for this section was holding cate that further liberality is
precariously above the 1958 possible, even though the rate
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
low but in position to break was recently raised from $2
The offering is made only by the Prospectus.
through on any pronounced to $2.40. >

until there

made

evidence that the

SfS

easiness.
A

New Electronics

Skyrocket

Sought
It all added up

Misunderstood Company

The contrast

eral Time which

cautious

to above par

NEW ISSUE

might be Gen¬

this

ran

from 35

125,000 Shares

show¬
approach by most of the mar¬ ing a yield of a little better
ket fraternity except in the than 1%, in tune with the
electronics

where

year,

Enflo Corporation

was other
space age issues even
skyrocket though, as one source puts it,
even
at
times when profit- the fluctuations "were
gener¬
taking was clipping the items ated by a basic misunder¬
like Texas Instruments and standing of the company."
$
❖
^
Ampex which have had such

groping for

long

there

new

common stock
(Par Value $.10 Per Share)

From this year's
General
Time
might be
has
tripled and better
grouped with the office
Ampex doubled in price. Varequipment firms since its spe¬
ian which only bowed in to
cialty on which its future
listed trading in mid-Sentemgrowth rests importantly is a
ber has doubled already to
data
processing machine
illustrate the ease with which
which, at the. moment, has
a

low

run.

Texas

issues

associated

with

elec¬

tronics have been bid up.
*

little
office

competition from other
machine

These wide

swings contrast

one

The

Copies of the Prospectus
dealers

issue is

oddly with

makers.

Price

of the

both

candidate

for

brokers

qualified to

act,

$3.00

may

per

be obtained from the undersigned

only in States in which such dealers
and in which the Prospectus

may

other

brokers

are

be legally distributed.

stock

dend

split as well as divi¬
boost, but at its peak

celebrated

dividend
payers, price it has discounted a good
Washington Gas Light, with portion of such favorable
over a
century of continuous news.
payments. During nearly
Diversified Coal Enterprise
three-quarters of that period
it has mad° continuous quar¬

Makes Progress

terly disbursements. Its yield

Another narrow-m o v i n g
item is Pittston Co. which is

definitely

above

average,

D. Gleich Co.
November 23, 1939

Aetna Securities Corporation

The Commercial and Financial Chronicle

(2210)

production that have entered the

What Is So Different About.

The Chemical Industry?
By Robert B. Semple* President, Wyandotte Chemicals
Company, Wyandotte, Michigan

chemical

field

and

of 176% in the same period.
We
capturing eould not, however, pass this latmarkets for ter increase on to our customers.

portions of
particular products.

Included

'
.

Manufacturer arrays

and ranks first in current capital

number

and

research;

pure

the distinguishing characteristics of the chemi¬

basic

one

spending plans and in

held that it will

anticipations

notes

the U. S.

be the

processes

industry in our country. Mr. Semple selects ability

terials;

industry will enjoy the fastest rate of growth.

any

The chemical industry has grown

tremendous scope enables the infrom a comparatively small but dustry to produce more than 10,000 distinct chemical entities to
prosperous industry at the turn /WW4
which hundreds more are added
of the century to where it is now,
annually.

based

total

assets

June

the

1959',

30,

fourth

est

turing

tinguish

the

chemical

sity

all

ing industries.
Robert

industry
important

Semple

not

only as a supplier to pro¬
ducers, "who in turn serve other
industries, but also as a consumer
.

of many

types of goods and services, and as a major employer and
a
taxpayer.
These contributions
to the economy by the chemical
industry are not localized. There
are approximately 12,500 chemical
plants, which are located in all
50 states.

comparison, of the growth of
sales

chemical

the

growth oi Gross National Product
for the years 1955

through 1958

Chart I.

The classi-

fication, industrial chemicals, ineludes most of the heavy chemi-

c?!s P

,ur

s j°

chiefly to,other industries. Industrial chemical sales, as a per cent
of ,.1954 Sales, exceed Gross Nar
tional Product as a per cent of the
base year by 2

1947

-iqw

Characteristics

the

fhomiral

inrlii«?trv

the most

Another

obvious

number of

hi*

one

raw

and

finished materials to make

gle

product,

cer

ber

its

raw

industry

and

make

products from it
,

basic

1sin-

like an automobile;
t
wxxiuuiic,
single raw material

netroleum

of end

semi-

•

others take

...

num

The
•

material of the chemical

'lars-

distinguishing charac-

teristic

of the industry is the intercommodity competition. Many

0ther.

the

molecule.

compete

Chlorine is

the advantage of a product or process for only a limited
time; and (5) foreign competition
is increasing.
This foreign com-

company

;<■

rincfnmoro

nm*

ore

This

industry

become obsolete

that

sure

the

mis¬

sizable

expenditures

industries

are

incurred

for

therefore

are

;;In addition,

are

expenditures

could

removed

from

their fig¬

occur.: Due to ourinability to
increase prices in the chemical
industry, we attempt to sell out
maximum, volume

our

fr»

nrpccnro

coil"

and

thus

maximum

our

and

effect

stimulus to get

facilities.:, the greatly improved

development expenses incurred in
the preparation of
prototypes, etc.
If the development

■

earnings re-

indicative of the

of these

success

before.it has efforts.

A"'

'
.

•

'■

;

Conclusion

In conclusion, I have
attempted
briefly to present1:- the' chemical
industry in perspective tox our

national

manufacturing

have

and

the

equipment

even

com-

with some stand-by capacity. This ures, I feel, the amount spent for
stand-by capacity is usually util-] pure research would be highest in
ized to alleviate temporary or , the chemicals and allied products
]"/Y
'
emergency conditions which may industry.
>

A constant development of new ported by the chemical industry
products and new processes causes this year, as compared to last, is
chemical

defense, oriented.

dustry builds ahead and operates

industry jsjfce maximum process efficiencies, and

obsolescence

rapid

For

substantial amount of total
expen¬
ditures of these two industries

in the chemical industry, further
competition is created and in turn
accentuates the price squeeze. Let
me explain this, cycle. Every, in-

Another'economic charactertstitfL It is surely

of the chemical

portion

the government and

squeeze

petitioniois secondary in nature .in utilize this stand-by capacity. This

each

with

n^endous variety of applications

touched

distinct

economy

upon

some

characteristics of

our

industry. ] Tc many, we are. a
glamorous industry as evidenced
by the significant entry into all
phases of the chemical industry
by companies- not primarily, or

formerly, -'involved

-in

chemical

production.

Their entry into the
industry is, to a large degree,
speculative. Steady future growth
is

insured

chemical
in

the

and

-primarily
by
basic
Competition

producers.

chemical

industry is keen
I believe the deciding

unique.

factor

determining what

com¬

panies in any industry will enjoy
the fastest rate of progress and
growth is the ability of manage¬

form

the

good example
an oxidizing
bleaching agent for
a

used

functions.

same

interprocess competition, I

be-

industry has been caught in

what of

price

some-

Such

squeeze.

lieve' is Peculiar to the chemical items as chemical wages, freight
industry; for example ethylene J"ates, and the cost of machinery
glycol is made by four different
j?f^e i^£eas
approximately

^5% to 50 /o more than the selling

Prices of chemicals.

•

cellophane
,

versus

aluminum

wax

foil,

paper,

versus

polyethlyene film, versus acetate
^ilnv
All compete in the nackasino
i "a P
g
ing
or the wrapping field."
.
~
Yu;_
/i-1

a,,

po-

Pr*ce increases which has existed

the chemical industry

jng

industries.

can

seen

(Chart

from

The

selling price in the iron and steel
industry
have increased
increas-^
industry have
to approximately
172%
of
proximately 172%
of the 1947-

2).

Chart

This
The

chemical industry's capital spendjng has and .will , exceed all other
manufacturing industries.
It is
forecasted that in

1962 the

chem-

jcai industry is expecting to spend

approximately 24%
the

1958

year

than in

while

all

other

manufacturing industries will in-

the

number

primarily

marked increase

companies

involved

inevitable

not

chemical

*From

fore
of

over

the

American

Detroit,

Mr.

Semple

Mid-Continent

the

Bankers

Mich., Nov. 5,

Trust

be¬

Con¬

Division

Association,

1959.

Baum Co. Appoints

Roberts,Thompson

will be aecounted for by products
which

were

^
1959

The

will

Y'7*

not

production

chemLr?ndust?y

"expe*nd""mor^Tor*7
-

search labilities than

re-

^
^ ^
any other
Don L. Roberts

MANUFACTURING

Robert

Thompson

KANSAS

CITY, Mo. — Don L.
Roberts, Vice-President of George
K. Baum &

INDUSTRIES

Company, 1016 Balti¬
Avenue, members of the

Midwest Stock

Exchange, has re¬
become
Manager of,. the
Municipal Bond Depart¬
Mr.,, Roberts
started* his*

cently
firm's

INDUSTRIAL CHEMICAL SALES

ment.

career

Trust
INDUSTRIAL

address

28th

Sponsors

cause was

the

official

1784

this

leading

lan

Name V.-Ps.
Thomas J. Flaherty, Jr., President,
Universal Programs, Inc., sponsor
of

contractual

phia

plans

for

of shares

Fund,

has

the

ac¬

of Philadel¬

been

elected

well feel that he would
position at the
coming Summit Meeting if he is
obviously popular in the country,
stronger

What is
run

important in the short

is the seasonal factor. Christ-

mas

coming,

investors

are

and

small

many

anxious to take their

England
bank,
sixteenth the board of directors of the Asso- profits in order to spend it on
largest in the United States, ranks ciation of Mutual Fund Plan Spon- Christmas presents. Precisely beamong lenders to
national sors, Inc
and appointed eastern cause of the large number of small
corporations. A full line of bank- Vice-President of the Association, holders of equities who acquired
--

its

affiliate, Old Colony Trust Co.

With

domestic

branch

offices

re-

stricted

by law to Suffolk county,
foreign
expansion
has
brought
about its
present high standing
the

among
banks.

ated

...
.

ing and trust services is offered
through its 26 Boston offices and

world's

aic

important centers of Latin

complemented
by a representative office in Lon¬
don, The First Bank of Boston
are

(International)
world-wide

in New York and
network

corre¬

spondent banks.

progress-

occurred

into
over

was

re-

sponsor

Fund.

made

was

in New York by

Rowland A. Robbins, President of
Rje Association who is Chairman
of the

Board, First Investors Cor-

poration.

The

headquarters

Association,

with

East

%2nd

Street, New York 17, is comprised
wholesale

retail
the

bank,

banking

past

has

years.

Phristmas t:he moment these small
investors ^e^^® ^certain about
immediate prospects they hasten
to

Announcement of the appointments

Formerly

Smith, who

of contractual
plans for the Financial Industrial

„

oper-

Company,

commercial

KrQT,„uoe
Fifteen branches

America. These

their holdings for capital gains,
elected to the board, was named this influence is at present of conwestern Vice-President. Mr. Smith siderable importance. Even though
is President of FIF Management 2*ei[e', 1S
much time before
Charles

of sponsors of the

investment

contractual plan

method

for

the

pur-

chase of shares of mutual funds.

weak

take their profits for fear that

not

others

looked

are

iri
in

nec¬

the
The

remains

good

"There

are

Equities

with

upon

armament

with favor.

disproportionately high

many instances the pros¬
pects of their earnings in 1960 do

not justify their low yield.
But
taking industry as a whole 1960 is

expected to be

a good year. It is
probable that capital goods indus¬

tries

will

benefit

long »last begin to
the turn in the tide

which has conferred such substan¬
tial benefits to consumer

goods

industries

stability of the cost of liv¬
ing index is in itself a most im¬
portant

point >foreshadowing
a
expansion of business. It

further
reduces

the -likelihood

version

with aiaCrity to the wanting notes

re¬

dear money, and tight
sake of preventing

credit for. the

inflation.
of

any

There is so.far

inflation,

thorities

comparative

wTlLhappen

afford

can

bank

-sign

that the
to

au¬

view

credit

equanimity.

some* of the

the

with

What

exces-

sive wage demands are conceded
is of course another story. Likewise a series of major strikes
might inflict losses on the firms
concerned, with reactions affect-

ing other industries.
The first
quarter of 1960 will be a critical
period from this point of view,
because by then the extent to
which demands for higher wages
and shorter hours are likely to be
pressed1 will become
evident.
1
Strong
One

Sterling

thing is certain. Whether

not the Government should

it necessary

of the monetary

deem

to resort to the

use

weapon to check
no such meas-

domestic inflation,

ures are likely to be called for in
defense of sterling. It is now con-

sidered possible that sterling will
finish the year without declining
below its parity of $2.80, in which
case
it is likely to remain at a
premium during the first half of
1960, and the Treasury is likely to
gain more gold. From the point

view

will

with

the

of
no

the-

exchanges there
for interfering

need

business

ticipated for next
Government may

expansion
year.

an¬

And the

think twice be-

the expansion solely

Christmas

preventing

do-

mestic inflation

by the Chancellor and the

given

Governor.
The

reas0n

why the large

Two With
num.

ber of small sales tended to affect

prices to a disproportionate degree

mnnv

in prices might upset their. fore checking
plans. They responded for the sake

dro

basically
changed.

spots.

concerned

may

that
not

outlook

expansion

be discontinued.

regular annual dividend de-

firms

nnH
and

flood

this

deteriorate.

course

are

all

The

and the first half of November the

On approval of shareholders in

January

thoughts

reminder that

con-

.....

industrial

gave some

incentive

influence

approach

expected to improve rather

than
to

gathered momentum and devel¬
oped into a minor slump. But in
reality
nothing
approaching
a
slump occurred. In the course of
the week the markets regained a

Remains

has

•

economic

been surprising

fiduciary

are

far

selves

signifi¬

situation

com-

cumstances

few -weeks.

the

Having, said
essary to add

1 idate

previous:,

went

the

Outlook

mentators

pro¬

This

year.

with

of
Christmas is likely to continue to
give rise to some selling during

w a.

t ion

conso

been

the

together

techni-

r e.a c

though operations there remain

able

turn

than

Cuban

have

time

this

Some

ments, but. who will have to pay
Income Tax and Surtax after the

agreed that!.'

will

cumulation

Chartered
New

RHODESIA

A11

advance.

Vermont, Maine, New Hampshire,
or
Rhode Island, and more than

INDIA. PAKISTAN. CEYLON, BURMA,
KENYA.

profitable. No earnings from Cuba

high
NATIONAL

election.

consumers'

unprofitable,

Argentine

Fund

1-1248-49

Bank

remarkab 1

Telephone: BArclay 7-3500
Bell

sellin& became infectious. It in-

setback fol- fluenced
also some-medium and
large investors who
able to

cautionary tone struck by several
spokesmen—amongst them
clared will then be the equivalent the chancellor of the
Exchequer,
setts, and Connecticut allow lim- of $3.50 per share on the 2.8 mil- ]yir. Amory, and the Governor of
ited
branch
banking.
Outdated lion shares presently outstanding, the Bank of
England, Mr. Cobbold,
legislative restrictions have slowed
This
high quality bank stock in recent public pronouncements,
the trend in New England toward
can
he expected to maintain its Obviously
the Government does
fewer and larger banks, but these
past investment standing as a good not like the Stock Exchange boom,
i:™.
limitations are being effectively
income producer over the deter- A Government that does not go
challenged by the needs of the minate future.
'
»
through the gestures of discouragpublic...
ing the creation of fortunes overThe region's banking activities
night is liable to lose popularity,...
are
exemplified by the pre-emi¬
and even though the next general
nent position of The First National
election is far away, Mr. MacmilBank of Boston

Bulletin

.'Member*

Island.

compared

strictly regional basis

NEW

lm-

are

to My months i/to

large
purchases. ■

sections

certain

^he^egin" and lower prices conveyed the
of ^ °^Nolvem" pression of a turn in the trend, and

L°ndon,
t^0

Hampshire alone prohibits branch
banking, while Maine, Massachu-

the

New England. State-wide branch
banking is legal for Vermont and

ing for textile customers by New

Even

up"

„

rG ^

IIH.

The bank's

The nation's bank merger fever

Rhode

South.

««m fa Over.100 leading ri s<e
since
banks>throughout the nation. In shortly before -'•
iqw thp mvmpnt wrinH
wa^Pvj fl?
L
fyay lnepayment period was ex- the g
general..--

should further enhance cost

continuance of- significant financ-

of the

adopted

ap¬

defend

nrofitable

rapidly
"shoring
region's future.

picture

case

n-wfP!u'

fac-

are

of contact- largely
explains
why The First of Boston has cona

been

now

financial
even

sterling which he anticipates will finish the
strong and likely stay at a premium during the first half of I860.

year

countrv

tronic

kind

tinued

the

hiehlv

and

newer

prospects,

market set-back

critical period, and notes no
monetary measures

as a

needed to

are

mike

lareest

growing mutual funds field,
second only to the New York area,

business.-. This

California-based

quarter of 1960

The

nnerations

1960

stock

but that it is expected to improve rather than deterio¬
Einzig explains what occurred, sees even the capital goods
industry turning the tide, posits the expected wage demand in first

the

Damon

industry's

London

rate. Dr.

tourist

relationships with banks frequently ignore geography. Service ren-, the
dered

recent

slump and reports not only does the economic outlook

thriving billion dollar ability to bring down a larger left
industry, the prominence percentage of gross to net earnings session 0f holders
of the insurance industry and the than most banks. Efficiency aids
equities.
District's strong representation in underway, such as the use of elecThe setback
tries.

for

One

over-all

remain good

of this de-

fifth

normal. Bank

banks

proached

p^t Check Credit revolving loan

and

is offset in part by healthy growth
of service and distributive Indus-

large borrower, together with
voluntary exercise of safety,

call

the

factoring

toring
Tue

Roger

fourth

remain

Although
the regional trend appears to be
signaling for more durable goods
production than in the past, this
heightened * cyclical vulnerability

the size of any one bank's loan

the

strument. and electrical

Since leading
heavy borrowers
their market for large bank loans
is nationwide.
Legal limitations
to

growth

frail

their

observer denies the

per¬

earnings trend shows
great stability with moderate
growth. Foreign earnings are in¬
cluded only when received in this
country.
The
Brazilian1 offices

servicing the food, apparel, transportation equipment, furniture, in-

elsewhere.

corporations

Underneath

Optimistic about the

have

high

aeo

vears

president

1959

Range

banks.

Loans

accommodate;

The First National Bank of Boston

by early history, Bos-

1959.

By Paul Einzig

1957

yelopment is the recently elected

Approx.

Favored

hankine 25

durables

53-47

raised in

were

maintained

tended

The Six Largest Banks in the First Federal Reserve District
Bid Price

in¬

new

centage of total assets, reflecting
an
aggressive policy. More than
i0% o£ the bank'js, husiness done
in
services. were\ unkn0wn
to

and

Amons
Among

only

presence of officers of principal protagonists

L0Ul
these five companies
the board of directors of the

again

been

based in Boston.

are

Alert

rate.

dustry development the bank is
working closely with growing en¬
terprises in the area.

Bank Stocks

—

Encouraging Second Look
At Throgmorton Street

savings deposits. The latter are
declining, possibly due to the low

BURRINGTON
I.

deposits are
as large

Loan limits

This Week

bank

believed to be three times

dividend

STOCKS

rffiwuw l»v*'

was

not

that

tickers

indicate

the

size

London
of

transactions. The appearance

the

fair number of markings at lower

Paine, Webber

(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—James R.
Cote and Thomas H. Fiege are
now

connected with Paine,

ber,

Jackson

Building.

Web¬

Curtis, Pillsbury

The Commercial and Financial Chronicle

(2212)

Tasked

Labor

Savings"—

•

Fact

first

contract; it

the

see

labor

tract

Fancy?

bor rates in

1961

above

1959

Company, Cambridge, Mass.,
can

firm

;

keep

relative to the

with its competitors whose prices

of employees? The

pay

points out, lies in keeping
three

basic

ways

to this, Mr. Rucker

answer

' ;

cost input. The

achieving

this -economic productivity

added

im*

incentives constructively. Thus, Mr. Rucker distinguishes labor time

:•

1909,
just 50
years
ago,
a
popular make of automobile sold
for $1,250.
Thirteen
in 1922, this same

later,

years

type of

sold

car

for

$395 — a
price reduc¬
tion

this

All

result

•

bor-time

let

sav¬

maiiu

fact ure

the

parts, and

on'the

the

■

surprising, and it
absolute heresy,

you

the factual basis

seems

give

Ten

hourly
wages in factories were $1.33; to¬
day.they are about $2.25, an in¬

\ljjj

years

crease

assem-'

been

bly line-—sav¬

average

60%.

Had -there

improvement in effi¬
reduction in labor-time

unit

per

ago,

over

ciency,

ings passed on
to. thec.us.*;

output, the prices of
gbods would have
60% higher.
How else

manufactured

tomer under,,

the

saved

into

for the statement:

of materials
and

converted *

sound

may

la¬

ing

If this

the

was

labor-time

the

equivalent amount of payroll dol¬
lar savings.2

two-

thirds!?

that

been

be also

relentless

could business

of
Allen W. Rucker
competition. The new 1960 model
of the

that cost

have

not

dads and grand dads

risen

only about 25%

our

$1,250 a half century ago. sells to¬
day at about $2,000—the price dif¬
ference being a measure of the
penalty of inflation only partially
offset by improvement in effi¬
ciency
and labor-time
savings.
Wdre

it not for

half

century of
technological improvement, this
car
would
sell today for
about
$12,000!
This
is ' a
striking

achievement
often

industrial

and

agement

engineers,

man¬

too

now

forgotten.

And

make

the material and

labor-

than

Lest

want

turn

imagine

back

that

add

$200!

someone

the

that

clock, let

the $1,25Q
of .6,000
If ours of the pay of factory work¬
ers
in those days.
In 1922, the
$395 car needed only the pay of

required

car

not

quite

$2,000

1909,

upwards

hours.

700

calls

car

Today, the
the pay of

for

ab'put 880 hours of
factory worker pay.

the

average

unit

labor

The big and

important effect of
labor-time saving in manufacture
reduce

tomer in
The

the

terms

customer

labor-time

cost

of his

the

cus¬

labor.

own

gets thev results

saving

directly.

in .industry get our benefits

We
indi¬

rectly, largely through higher vol¬
ume
as
improved efficiency cuts
.

costs-and widens the market.1

This is the great achievement of

private,

competitive enterprise—
the accomplishment of able man¬
agers,
engineers
and
inventors
backed by risk capital.
As nearly as the official data of

the U. S. Census of Manufactures
enable

determine,

conjunction with the F. R. B. In¬
dex of

Manufacturing Output, the

average man-hours or man-min¬
ute per unit of product
today is
less than 30% what it
It

was

down, to about 76%

it was

tion

in 1914!

of what

just 10 years ago—a reduc¬

cannot

labor-time of 24%. But I
see
that
manufacturers

CIAL
*LcCbcr

COMMERCIAL

CHRONICLE,
Savings'

vestment?",
1950.

by A.

AND

"What

Frc-n

New

FINAN¬

Becomes
Car-Hal

Rucker,

the

recent

and

enabling

their

sell

prod¬

ago—how-

years

risen; how

five

years,

have

been

"labor-costs"

by 24%' in
controller of the

the
promptly

years;

firm

retorted, "where
savings?— they did not

the

are

show

profits."

company

Well, where were the labor-sav¬
ings? I checked the company's in¬
dex of

hourly

pay

against the price

index of its product—pay
up over
no

about 8%. On that

one

convert

can

labor-

savings
into
dollars
of
added profit;, he has to use them
to reduce unit costs and hepce en-,

able prices to be held In line with

competition.
The

Dec.

of
In¬

20,

•

less:

have to. do

petition

well

as com¬

improving efficiency
d
making
labor - time
sav¬
ings in order to maintain volume

a n

and
an

order

to win

our

expanding market.

Labor-Time

C "

Versus Labor-Doljar

Savings

Another

firm

one

;

the same

.to

oTVvrol

Crontcd

con

•

"our factory manager and
industrial engineers figure to cut
7% off our labor-force end save

that

payroll by

two

million

Cull

for

year
a

investment of

dollars

These
to

1961.

big job in

2progress

improved

new

facilities

operate for the

What

about

labor-saying?"
in

productivity

pay, The Eddy-Rucher-Nickels Co.,
COMMERCIAL

AND

CIAL

FINAN¬

CHRONICLE, New Measures of
Productivity for Manufacturing Industry,
by A. W.

drop in its Economic
years

some

tage

Rucker, Oct. 23,

1958.

The

methods.

ago

have

deveIoped

L-onf

and

■dirjartmcii?

time

it all

can

Productivity must be kept at

the

when- contract

negotiations :
if they would end with

looked

;UctC

Fur

m^nuucnS

£ i"

improvement and a sus-,.
tajned higher rate of earnings on
your investment.
As; a .possible."' spur ;.to new
achievement, let me summarize
here some of the guiding corollary/
progress

but

brulf>l to men responsible,lor

costs, prices and profits.

■

per

offset

product rise
to

proportion to increased
man-hour.
'
Prices, as realized in the
market, will reflect average unit
costs of. competition; and these in
(b)

e,as,as

•

labor

of Productivity
rmm-ovemeiils*
'
Words, •

* - "*'

costs.

| • .fj.xe^ charges and

urges

business-

along the benefits of

pass

..niIimA

this

will

continuously

rate equal to the average

cal-volume, and to increase that
volume (to hold at least the share

'
'
'
iniproyemen-t- in the
U >r°u xyaut to know how good a
lower prices! / Hp x;iaced' a?afiaSar i^An a plant s operations,

emphasis

products do not
hourly wages, : so

(d) In order to maintain physi¬

of Pn

tive

Lud Ahe Ec.ortoinic • Productivity
means of helping
to {ireveVd in- tor-the past live years—lind the
flation. Now,! rise up in defense dollars of. Production Value outof American
business over
this P^t per-$l of compensation cost
statement—just
what" have
We fuput. y , •
greater

prices

and at p

productivity
form

;as

that labor-time savings of firm's com¬
:
; ;
i.
cuts* petition.

by increases

fast

that

;

by com¬

falling relative to wage rates ;"."V

evSfa 1 y
Sap.-,COJK':^2' to-92, 87-or 75%-reductions
Snnr!*
.e
S
1^5''' usually cannot be offset by
'onom c advisor, 3?roi. ftayipopd
Saulnier.^a

rise

Prices

(c).

other

made

unit

the management margin
per $1 of employment cost drops

•

savings, per
petition.

Faying

What'Becomes
'

turn

Economic

labor time-,

the

reflect

will

COmplish

that task,* if it allows
Productivity to fall to
say; si.92,; $1.87
or $1.75, every
111
penny "of thgt reduction comes out/
(^ o£; the management margin after

converting * dollar
into
added profit

unit

direct proportion

in hourly wages, but

increases

output per

reducing

sense

per

in inverse

cost,
about, has to be
additional $1.97 in

comes

Labor-costs

(a)

very

derlands adventures.

men

Principle: f

dollar of employment

however it

the-

arise-. from

that

basic Rucker Share of Production

time-savings.
T Jh e y
are
Production Value at minimum,
real. Bi.t'"labor sav~;<If:the management fails to ac-

very,

am_

ac{c(cc|

There is nothing fanciful about
labor

labor-payroll input. The firm now
knows—its President, its TreasurSales Manager, its ProducRon Manager all know—that every

enterprise,competitive

beneficial to customers

standard Economi, principles

Productivity ;of $1,97

s.ystem

JacjHties

ever-higher

threshold

the

to added invedment in

feflW has a

Ato
•
V;
~
'
As 1 have put it more than once,
_

bortionie

Then the firm is

help achieve it.

principle

a
sales
lnd
reduced near constant at veiY least> or
f,vi^L»
¥S^ iidi 5,,-i/^t
there is almost no chance whatpiiccs.; A,nd rill til IS; just uj, llic.
inpron^im* P'lrninP^ nro-

expanding market) competi¬
prices/Including those of sub¬
products
and
materials,

stitute

must be met.

•

(e> The Standard Management
Task is to achieve labor time-sav¬

ings and hence, relative price re¬
duction equal to competition, and
at the same time, maintain Eco¬

been

doing all these years except
If it has beep stable, good.
It
to
pass
along the benefits/ of means that (he plant has probably
higher productivity, that is, labor been making labor time-savings
time-saving per product-unit,; in and hence relative cost reductions
the
form
of
relatively lower ?at least equal to industry and has
prices?

Our

nomic

Productivit y

the standard ratio.;

above

still ' preserved
the
earning
(f) U)tder the Rucker Principle,
capacity of the business. If Eco- incentives may be paid only for
liomjc. Productivity has been ris- improvement of Economic Pro¬
Goods Prices to an index of the
ing, it is not only good, it is out- ductivity—and the incentive pay
average yearly income of factory t standing. J1 it has been falling,
is at the same rate as the gain
employees, shows a reduction of 4he plant is likely already to be over standard Econonjlc Produc¬
24 (/o in 10 years——and that reducin trouble, or to find trouble just tivity.
Thus, ,• participating em¬
tion
almost
exactly ".equals/the .ahead of it.
ployees and , the company both
total
labor-time saving; What's
•'
V:
share in those gains^
:
the poiiit of urging business to do.'x
The ;.Mcaus of Lconomic
Private, competitive .enterprise,
something it is already.doing? The": v. Productivity Improvement - v whether in
the
United
States,
implication is contrary to the fagt.-Mucli sqf
^tlfjsr subjegt > centers ..Canada,. England, France or GerLet's clear up
spme^/oL.this iaecd-!* around the^iiicfeh^d'in Economic Nnany^br elsewhere": generates its
less contradiction bqtweeif theory
^ pvPcfuelivity.; Th is conies about in -great power for expanding output
and practice.'
three basic waysfv.'v f
.;
faster^ than population increases
for
1 Whether bushiess reduces^ prices ^ %(t)' incji^easc ancl "improvemeiit /
providing and marketing
absolutely, or' «iinply- i^bes;wp]bi.ii-'. unv'.fools' /of ; prod net ion, that is _iricre goods per capita of popula¬
crease its prices*, as fast as- it' in-'/m o r
e
capital
Investment per tion—largely by its ability to xkcreases
its
hourly - wages; ;aii tf. workery ^
duce labor-time per unit of prod¬
v ?1 ?
" '■
yearly salaries; the end-result is
uct.
It finds a market for : its
v.iv
own

Index

Rela-

live Price Reduction, .the ratio of
BLS
Index
of
Manufactured

•

—

the

PRICES -OF

-same.

MANU-

*"Steadily'. cxpanding

b^ter malerial^utipzalioii, schecl-

ARE
AND/ FOR- - YEARS1
HAVE BEEN FALLING; RELA-■

tiling;.^handling and waste reductioiv
'
-

Business

passing

already ' has^ lpng .been
productivity

011

gains

Clistomers

•

any

•

ing

prices

labor-time
nair
pair

„

recognize that
farther than reduc,

proportion • to
savings, we will

out'

im-

iniurp nr
dp«trnv
lniuie
01 whnllv
wnoily destroy

economic equilibrium of
oyr

tViA

the

busi—

5 THE

matical

CONTROLLER,
A.

Chronicle, Sept. 3, 1959,

page

etc.

equation,
vj uca nun,
w

The
Ccmpany- (1958>.
6 AMERICAN

MeasUre-Profit

Rucker,

Juiv.

Produc-

for

August,

Rucker's

1955.

WAGE / SAL ANY

.'INCOMES.

Hence, dollar incomes of workers
buy. mere-today than they did 10
years ago: they will buy more 10
years in the future than they do
today.

This is the task of

ux,

BUSINESS, How to
contribution,w A. w.

the

skill;

management;

objective of managerial
is

constant. challenge
in enlist-

industrial leadership

■

business

Management"

Rucker, Sept.-Oct.

output.-

mathe¬

*
CO)
ji
x juco
clliu
"Wages,
Prices
and
Eddy-Riicker-Nickles

1959.

7 harvard

A..W.

For

see
see

Productivity,"

Reported.in The Commercial and Ft-- "Clocks"

nancial

methods, How to

Value index, by Albert Lynch, Jan.

Rucker,

—r—•

4 management

Control Profit wd Policy with
.1959.

Dr. Saulnier does
if

i„ ,t,,„UvWl<

passing along most, if not-all, of
these savings- in' the form of prices
that
FALL
RELATIVE
TO

pIoyeES. ™abo;^im?'co^a W

that

1952.

3THF.

"that,

■pvnUumnct

dent,

ready

the; .fundamental
of incentives, is to stim¬

purpose,

purpose

wl,ich amounts to this: Economic

vihoiiif'7"/
about 7%

Productivity

FACTORED GOOBS^^'GENERAL-i

equipment.

; The

v..

with this problem: Said the Presi¬

will

management.

on
.

rule,

amounting to a law
competition, is simple and ruth¬

input.5

cost

from $1.50 to $10

range

ulate
employees to greater acdamage caused by declining Eco-" complishment
that
utilizes the
nomic Productivity. For instance: lull
capacity of the available fa¬
jn one firm, and a pretty large cilities and takes fullest advan¬

ceiling—"Sell's

iom
innS
tem iL.ahnrt''n^
lie ;had to spend;

called-upon to advise several mgiti-plant firms on 'this matter of
labor-saving and pricing. In one
of these firms, the industrial en¬
gineers told me that they had re¬
duced

employment

av¬

much have prices advanced?

and

1 THE

costs

prices of 10

can

have

time

Savings

they

steadily
declining prices relative to their
labor-rates.3
Compare mentally,
for
instance, typical labor-rates
and

on
-

ucts at what amounted to

basis,

69%;

manufacturers to

30%, prices
The Results of Labor-Time

hit the

tremendous gap had to be closed' ings
in
the
somehow. It was closed by labor- payrolls
and
time saving, thus slowing the rise
labor-savings

•

less

risen

erage, in contrast to the rise in
hourly wages of over 60%. This

cost levels of

1909, but with all of
today's
improvements
in
effi¬
ciency, it probably would sell"for

Prices

But manufactured goods prices

much have labor-rates

vet, if we could

today at

Relative Reduction

popular make of car.
improved from the one

;

can

or jnore, depending on the nature
the. of the industry and its economic
the characteristic^.. The point is, no
" business
cam, long
withstand the

recover

cost

investment.

the private

same

doubtless

This

all "'improvements
in
objective of incen¬
only 9% cut its rate of return on' tives is to surpass -your competicapital almost exactly in half. Im tionin
labor
time-saving
per
day work two years ago.. He in-'' lo'years, this firm had advanced
product unit, that is,/in raising
sisted that he had saved more
hourly wages almost 9% per year, productivity per man-hour—and
than 25.%.of the labor per unit Of
compounded; and competition had to do that while improving the
product. Well; :t lurried out/that forced prices to a point over 10%, firm's Economic Productivity ac¬
he had done just that, in terms of - iess
than a decade ago.
This is complishment.
/
'7
cutting labor-time per. ,unit m rough, and it came about largely
If a firm succeeds in that im¬
product. !• But it also turned out because no one knew about Ecoprovement, it can well afford to
that the firm had raised hourly n0mic
Productivity. Let me spell pay a part of the gain in the form
wage-rates something.,over 9%. in this out a bit more:
of incentive earnings to those who

its costs?

recover

pressure

The

tion

them in balance.
Stillfewer, I think, fully grasp the
possibilities of better teamwork,
thereby improving efficiency by
worker cooperation, and. reducing
the burden of added capital .in¬
vestment and lightening the load

keeping

In another plant, a new produc-'
tion
manager
put in measured

generally have made any money
directly, out* of this time-saving.
other words, there is no evi¬
has

And that is exactly right.;,

dence

over

fire!" he, snorted,, "we have, to run
like blue blazes just to stay-even."

-just

President

savings from "labor savings," and explains why prices of manufac*
fured goods generally are and for
years have been falling relative : ;

No wonder the Executive Vice-

to labor-time costs.

1961

depreciation

additional

importance of keeping them in balance and of utilizing derivative

•

prices for

11%

over

;

author outlines the

earning capacity, and stresses the

preserves

raise

one

9%., and to increase its volume by

favorable ratio of production value out*

put per $1.00 of compensation

provement factor that

contract-rise
in wage - rates
confronts that firm with the need

falling

are

Now, everyone recognizes these
approaches but not every7
realizes the
importance of

three
■

The economic equilibrium of a
business is determined by the constancy of its Economic Productivity—the amount of Production
Value output per $1 of compensa-

the
How

employees and between
employees and management.
;

Iroauctivity,,

be raised

would

the expected

Thursday, November 26, 1959

among

......

-The Critical Ratio of Economic

15.4%, twice as
labor timesavings. There would be no labor
savings in dollars; on the contrary
much

By Allen W. Rut ker,"President, The Eddy-Rucker-Nickels

•

„

discuss this vital

briefly:

point

with ' pay
escalators.
According to the contract, hourly la•

Let

nesses.4

three-year con-

was a

review,

Control,

1955.

ITY

WAGES,

<1956),

and PRODUCTIV¬
Eddy-Rucker-Nickels

PRICES
The

Volume

190

Number 5902

The Commercial and Financial Chronicle

(2213)
ing the active, sustained coopera¬
tion of
every' employee in achiev¬
ing that goal.

PUBLIC UTILITY

'•'

] **
following table sl^ows what

The
was

accomplished here and abroad
between 1952-1958.
./

Relative

Decline

Prices

Do Not Invest in

AND FOREIGN

SECURITIES

" BY

OWEN

ELY

Mr.

With

All U.

Chemical and
*

9.3%

Products

17.3

Products
111
r_l_
Pulp, Paper and Paperboard

4.7

Rubber
\.

Primary Steel_
Gas

"■

•'*

.*■

*•

■

Foreign Countries (1953-1958)—
Great

■

£__!?_

Britain

'/l

10.8
15.4

Sweden

supplies

build

elec¬

gas

atomic

assumed

trend

toward

socialism

4,000,000

Michigan.

cost

"Outstate

Which

the

some

$30 million, of
$13 million is to .be

about

company likes
The area co.yers most of

charged off

the lower

peninsula, excluding the

ing water reactor with guaranteed

around

Detroit

;

Edison! and

served

research and devel¬

opment expense.:It will be

by* capacity; of 50,000

kw,- but

boil¬

Italian,: and
other

form

Euro-

few

above

small

had

better

£■.,

various

the

basic

incentive

goal,

and

programs

achievement

spur

purpose

toward

the

production

automobiles,,-,

visible limit to what
achieve. •
no

*Addrcss

Eighth

the

Annual

Rucker

Mr.

there
firm

Rucker

Executives

the

can

division, residential and
heating business contributes

As with other companies

the

Conference

Plan, Chicago;

were

formerly

monwealth

residential
about

Stone & Webster

the

compared
of

Expands in Canada
TORONTO, Can.—Stone
ster Canada

Web¬

Limited, which has de¬

signed and built some of Canada's
major petrochemical, power and
-I

industrial

plants,

2.530;

* o f ;

Lanc

t h-e

•

direction T

of Lee

Carter,
formerly o f
Stone

Lee Carter

Webster

Engineering
of the
•; Canadian organization/
•"
v. Growing
"industrialization -of
.western Canada, Mr. Scott stated;
-

; affiliate

has .led to the opening of the new

office
and

order, to

faster

new
...

provide .better

service

firms, natural
interests, Land

gas
-

industrial

and

petroleum

utilities

planning

Britain, <France, Holland
as

well

.//
-

the
•

.J,

United
y

---

;

of : Mutual

Investors

Company, 60 Cedar Avenue,- has
changed to Fidelity Mutual
Investment Company.
been

H. A. Riecke Branch
JACKSONVILLE,
opened

&
a

16%

Co.,

Fla.

June.

gain.

branch

office

another

added

The

this

should

least

office

the

Upin Building under the manage¬
ment of Guy G. Baker.

tends—in

the

months
$3.57 com¬

slightly

This

year's

during; at;
par lion, of the heating sea - -

Over

son.

the

five" years

Consumers
expects
to
obtain
double the gas
supply which it has
been" receiving* (Its ppiprifpal
supf
plier is* Panhandle Eastern Pipe
the

30,000

fief* taking

care

the

tax

fig¬

1942

has

space

excellent

growth
*

poten¬
•

cies "and the -equity ratio
sale of

lew,

compared with
of 1,739,000

load

chain

cial

service

With

slock*' has

arpund 56

been

selling

(range this

62-52(2) and based

kilowatt
struction

unit, also
capacity,- is
and' is

into service in

company

(Special to The Financi.u, Chronicle)

Russell

Corpmerce

Ohio

Co.,

Building,

—

Oliver

Inc.,

Union

members

companies

may

investors
who
buy
however, playing with
hope I am wrong; but I

are,

that

think

getting

Mr.

will

control

succeed

all Berlin

and

will
ultimately consolidate East
Germany—which Russia now con¬

trols

which

and

visited—with

West Germany. This could enable
Mr. K to control the entire area
under

the

Polish

Poles

insist

they

System.
not

are

The
Com¬

munists; but all property is owned
the Polish Federal Govern¬
ment, which is friendly to Russia.
Hence

purchase of
bonds.

not
any

recommend

the

German stocks

1 ■;

■

Khrushchev's European Program

last

stated

week,

Mr.

does not want World War III.

hope

worked

that

some

for

out

him

way

K
His

what

can

Prescott

conducted

his

Co.
own

business in Toledo.

the

past

investment

follow.

Western

does not want Commu¬
nism; but I believe that with the
exception of the property owners

—who

small

minority—the
majority are favorable to state
ownership under the Polish Sys¬
are

World

War

III

should

come,

Europe
would
immediately
socialistic
and
have
state
,

ownership; but gradually—war
no

bonds

issued

other European

coun¬

tries do not have to be reported to
such
a
commission; in

fact,

commission

exists

Ger¬

Therefore, it is often im¬

many.

possible

to get the records
of
earnings, assets, and other details
European stocks or banks which
the corporations or bankers do not
of

care'
to
publish.
Furthermore,
punishments for false rumors and

insure

H§nce,

not

are

severe

accuracy

irrespective

World War III

activities,

readers

now

enough

honesty.

fears

Communist

any

advise

cannot
invest

Europe.

New York State
Elec. & Gas Corp.

Rights Offering !•
Common
York

stockholders

State Electric

of record

at the

1959

20,

close of

will

New

Gas Corp.
business

receive trans¬

ferable warrants evidencing

for

466,961

stock
of

new

$25.50

the

ratio

stock

for

rights
share

per

common

one

each

"held of record. Subscriptions will
be

accepted only for full shares
The
subscription offer

stock.

will expire at 3:30 p.m.

Dec.
';

The

(EST)

1.959.

organized under
New York law in 1852, is engaged
principally in
the business of
generating, " purchasing,
trans¬
mitting, distributing and selling
electricity and gas within areas in
the

company,

central

eastern

and

western

parts of the State of New York.
It also produces and sells steam
fpr heating in the City of Lockport. The principal office of the
company
is at
108 East Green
.

Street, Ithaca, N. Y.
The

corporation

stock proceeds

will

use

primarily for

the
con¬

struction.

H. 0. Peet Co. to
Admit MacDonald
KANSAS CITY,
H.

Peet &

Mo.—On Dec. 1st,

Co., 23 West Tenth

Street, members of the New York

tem.

turn

with

would

and

many

gradually

consolidated and control Germany
without fighting.
But if he must

Exchanges.

He has recently been

Stocks

bankers and corporations in Ger¬

Nov.

■

American
them

all

go
to

these

temporary profits.

fire.

the New York and Midwest Stock

planning

investment

Europe

under* cori-

banks—which

the

J. N. Russell & Co."

commer¬

Scheduled

Ger¬

Oliver Goshia With

CLEVELAND,

1X161.

favorite

fight to bripg about his goal, and
if we should feel obliged to get
into a nuclear war, I hate to think

Goshia has become associated with

265,000-

The

carry

offer

about

year

the current

quires.

the

recently

September

stores.

Many

in August, approximated 37%. The

last

unit of 265,000 kw capacity.

second

The

into

early

The

are

business—are also making money.

4fter the

kw:

E. Karn Power Pl'allt

stocks

largely

$25 million mortgage bonds

The

year's peak

ex¬

"industrials,"
namely chemicals, metallurgy,
electronics, building materials,
automobiles, paper products, and

main¬

been

handicapped"
by restrictions on
heating. There is, therefore,

very

tained conservative financial, polir. by

customers,'V the dividend rate of $2.60 the yield is
company will have, a wailing list
4.6%*.' The price-earnings ratio is
of over
110,000 'for gas .heating ;
V"'.
service;-' since the company/ first i5.7. • brought Texas gas into Michigan
in

now

decreasing proportion—

collectors.

man

general,, how¬

new

most of the time

stocks

take the time to read the
prospec¬
which the Commission re¬

this prosperity

I, however, feel it'is

"estimates"

until we reach Spain. The German
people are intelligent and indus¬
trious, and are not handicapped
by unreasonable labor leaders or

(although

received

and

Germany

prosperous and

It appears

The Dan

opened
Lasker-

Conditions in

the other hand may
affected moderately by

een

Holland

friendly to out¬

investors.

West

steel strike.

citizens

above.

recently
there: have
tificate
to
Truakline Gas Com-" been
temporary plant closings due
pany for construction of facilities
to steel shortages).
to supply an additional 1(H)
million
The .longer term outlook seems
cf per day to Consumer/.
(iocreaSfIng to 200 million cf per clay over favorable, assuming that the com¬
pany. can maintain profit margins
a four year period).
The contract
at the current level.
It is benefit¬
■called for deliveries to begin Ded.
I, but the,steel strike has delayed, ting by the opening of the St.
Lawrence Seaway as well as by
he'construction of the new lines,
the/completion of the new bridge
henco the initial, date of
delivery >
connecting tjhe lower and tipper ■
is sdmewhat underlain. -

the

dis¬

ever^ the sharply increased tempo
of ' automobile
operations ' has
doubtless benefited 1959 earnings

cer¬

number

rates; but
haveb

become

FPC issued

Saginaw Bay went

GRAND' RAPIDS, Minn. —R.
Steichen & Company has

The

Court

presumably included about
Ppl, attributable to the increased

the

30*600

company now has a total
electric generating capacity of
2,^

Steichen Opens Branch

basis.

ures

fall, since
to

gas -;was

previous period.

For the

270,000

man¬

this

al¬

stock, effective early

for

country.
are more

issues

new

tuses

not

to stocks of corporations in a lim¬
ited number of nations as noted

Sept./30 were
with $3.21
on

smaller

and

Aug. 31, reve¬
10% to $248,010,000.'

.Earnings

reve¬

has

—

Incorporated

O'Reilly Building under the

branch

volume

increase

tial.

agement of James E. Curington.

of elec¬

and

ended

were

available.

still

Riecke

revenue

12%

Line), .Even

VALLEY'I.N.., Y —The

name

sales

16%

these

recognized
commission re¬

while
been

Supreme

the cqmrnon

directors

its

bonds.

such

an appeal from the order.
The increase would be equivalent
to about 37£ a share per annum-, on

first

some

In Poland and Russia

and Aus¬

Now,Fidelity Mutual

LOCUST'
firm

■

States..-',
-

showing
months

ers

The
c a m p a.h;y
is , a -" memT,
ber of the Stone & Webster,
group
and
is
affiliated
with
Stone
&
Webster* organizations
in * Great
tralia

kwh
up

the

"co¬

original
fair value

*% • -rl
likely, however, that pemnsulas^ of Michigan.
business from these, new custom; Consumers
Power
has

year.

additional

expanded facilities.;

last;

were

side

missed

months

were

!allow

that

huge

protection to all honest inves¬
tors, and even speculators, if they

many

by the state must have

Belgium

ing customers and

Corporation,

have

co-operative

every

7
never

everything
is state-owned.
Hence, the pur¬
chase
of
European
stocks
by
Americans is limited practically

commission

Michigan^ the

Michigan

company earlier thi? year
had about 250,000
gas!space heat¬

Building, Cal-J
gary, u n'd e r

•

base;
previously

fused

The

917
t

a s

The

rate

had

last

com¬

nues

company,
said
that
the
at

eight

gas

tjie

office

ahead

nue

Calgary. ;•'/
7t Philip Scott,,

new

cost

During 1950 sales of electricity
and gas have been
running well

mpnths of 1958, with electric

located

kwh.

there¬

company

6% return

ghs 19%*; Revenues were ended
13% larger than jn the first eightpared

office

president

3,366.

sales

opening of

new

lowed

corre¬

usage

3,905

The

sale

and

countries

majority

1948.

requested!

low

with the national figure of

pared

tricity

has

ann o u n c e

the
a

averaged

year

System,
with .the

spondingly, residential

the
Roger W. Babson

and

6% in

war—this

Exchange
They claim its red
"ball and chain" on

Commission.

tape puts

private - stores
operatives."
In
owned

$6.8 million in increased
revenues,
considerably less than the amount

Com¬

quite

are

average

which

old

Southern

rates

2.230

national

earned

was

fore requested a rate increase and
after some delay, received about

78% of gas revenues.

before

and

these- countries

year-end net property account,
compared with 6.5% in 1954 and
on

'"/•/

Exchange

Bankers and brokers have
liked our Securities and

all the utilities

All

change, $3.15 being

reported in 1958.
-In, 1958 only 5.3%

gas

pace

little net

was

f :•*.

•;

Securities and

'■*

ately in the two'following years; are owned by
their national
in 1953, they
improved to $3.16. r
During the next five years there governments.

raar

improve¬

assured—and

that

speculations
investments.
'
'

Commission

telegraph, and

chinery and5'metal products, fur¬
ment in a firm's Economic Pro¬
niture, chemicals, paper and food¬
ductivity., Without such an im¬ stuffs.
However, industrial sales
provement, there will be little or contribute only 30% of -.electric
no
lasting progress; but' given revenues compared with 43% for
this
gain,
progress^ in- a
firm residential and farm customers. In
should

phone

ing.
While the area has a large Commonwealth &: Southern Sysnumber of farms it is also, highly - .tem.% Earnings had advanced to
industrialized
arid
includes
the $2.78 by 1950, but receded ftiodef-

European

upon

dangerous

Our

All
the
that my U. S. readers

look

rather than

teamwork must also play its part.

Communism.

■

means

stocks

•

fears

long

not

returning home from my standing the recent fine
victory of
trip to Europe, I find that the conservative
party. They don't
many
of my
friends here
are
want
Communism; and I hope the
greatly interested in buying stocks Russians will
get tired of it. Much,
now
of G e rhowever,
depends
upon
China
man,
French, which is fast
developing its own

hoped to ! increase this to 75,000 p e a n c o mSOURCES: United States: Wholesale Prices ^sections
taken
care. of
by -local\ kw during a test period of 4V2 panies.
t
; and Gross Hourly Earnings per BLS from utilities. Principal cities
Let me first;;
serviced; yearst. by increasing kwh output-'
\, "195$ Ed, of Business Statistics. It/
!• * are
Flint,'Grand Rapids; ,SagmaWjf per cubic, foot of the reactor core. sa,y that in,
Foreign Ccuntrifes: Price and" Wage 'data
Lansing, Pontiac and Musjkegon^v
from Managed
lConsumers Bower earned $2.45 N o r w a y,/
Money, by M. Palyi, Notre
Daine -Press,. 1958. • .* •
a. share in the
Revenues are
year 1948, when the I Sweden, and about;two-thirds/^
Better tools and better methods electric and one-third
gas,"with a shares:, were; distributed" to the' Denmark, the ;
must play their part.
But better very small amount of steam heat- - public $ in 51 the.; break-up. of the railways, tele-,
And

and

any Communist activities.

Since

plant

power

Lake Michigan near Charlevoix at

to call it.

area

;

11.5

natural

southern

-Michigan'*

\-i".

■

Power

and*

population

•

'2.~

.'Holland
;

tricity

20.1

concerning W. W. Ill

"VJCRT-

Consumers

25.6

based

Company

■

3.5

£__-

Utilitiesll._i_"__£___l.

■

gen¬

or bonds
particularly. He depicts European
dangerous speculations rather than as investments. This

9.5

Utilities^

Electric
■

Allied

Consumers Power

Price Decline

Manufacturing

purchasing European investments

erally and German stocks

COUNTRIES

(1953-1958)—

Babson counsels against

stocks

Relative
United States

Europe

By Roger W. Babson
4

Respect to Wage-RateU.

the

trend.

This

and

Midwest

Stock

Exchanges,

will admit Frederick H.
ald to

MacDon¬

partnership. Mr. MacDonald

wa^formerly Vice-President and

especially applies to France, Italy,

Manager of the Syndicate Depart¬

and

ment of Burke & MacDonald, Inc.

perhaps to England, notwith¬

The Commercial and

(2214)

plans

Hugh W.Long

MUTUAL FUNDS

Elects. Ann Galvin

BY ROBERT E.

that

RICH

Long Company since 1948 and was

elected
in

assistant vice president

1957.

Tillman Stevens Opens
(Special to The Financial Chronicle)

MINNEAPOLIS,

Minn.

—

Tillman

S. Stevens has formed Tillman S.

Stevens & Associates with offices
at

Drew

4824

engage

South, to

Avenue,

securities business.

Not Dead, But Not

120

clared

of 6V2

cents

Still, they aren't thriving either after more than a decade of
billions of dollars into such cost-cutting programs as
dieselization and electronic yards and offices. Now, apparently, it

is to be

a series of mergers in yet another effort to come abreast
changed times. It may yet be that they will radiate the
vitality that was theirs a generation ago, but right now about one
of every three investment companies has written them off.
For,
of the 179 open-end and closed-end member companies of the
National Association of Investment Companies,
only 121 hold
security issues of the railroads. These 121 companies have over
$800 million invested in the common stocks, preferred stocks and
bonds of the carriers. This investment represents an exceedingly

the

from

fallen

two

realized

would

securities

Pennsylvania and New York Central, are
that where investment companies

appear

be persuaded that railroad issues have some

Union

Pacific, Nickel Plate, Norfolk & Western and Illinois
are represented, but the value of the
investment in
these roads totes up to a mere $125 million.
As the
chief of one mutual fund, which holds no railroad
securities, noted:
"That adds up to a few sizable secondary offerings."

MORGAN

Central also
all four

Nor is the low esteem in which the railroads
to fund managers.

held confined

dend of 25 cents per share—not that a dividend-was
justified, but
the road wanted badly to keep intact a record of
paying something
each year for more than a century. If the old Wall Street cliche,
which holds that the time to buy a stock is when
nobody wants it,

ATOMIC

ENERGY?

then there should be at any moment a mad scramble to

get aboard

the rails.

prospectus describing Atomic
Development Mutual Fund, I nc. This
fund has more than 75 holdings of

worse."

companies active in the atomic
field with the abjective of possible

case

"it's

got to

get

better because it

growth in principal and income.

Development Securities Co., Inc. Dept C

1033 THIRTIETH STREET, N. W.

Investment

Fundamental Investors, Inc. de-

fourth

income, payable Dec. 28

stock

quarter dividend
share from net in-

Dec.

record

cents paid

with 5V2

compares

in each of the first three

this

quarters

year.

And

declared

Inc.

fourth

dividend of 1V2 cents a share from

jugular vein

cities, towns and suburbia.

basic

industry, but there

are

Dec.

Nov.

could be rich.

And

Fund

Putnam

George
declared

end

year

12 cents

are

distri¬

from
capital gains, both
payable Dec. 22, to stock of record

Dec.

5*{

3*:

Insurance

Teachers

Annuity

Jacob

Latest

13.

Lester,

was

against first

tive

stock

3-for-l

Oct.

30,

Thomas

split effec¬

1959.

Flaherty Jr., Presi¬

dent of Universal Programs, Inc.,

contractual plans

sponsor

Fund

the

board

has

the

for

been

elected

Association

College
has

Gage

and William F

Hugh W. Long
Elects Lundy

possible long-term growth of
capital and income.

I ncome Fund
list

investing in

of securities

for

each

investment dealer.

The Parker Corporation
200 Berkeley Street

Boston, Mass.

l.^_

ernors

and

trative

Investment

also

Committee.

committees,

the

define

areas

Com¬

the Adminis¬
Chairmen

titles

of Wellington

which

operation

Welch

Fund; Finance, Le-

Kaiser

Insurance

Se¬

tion,

Harold

vestors

Bradford

In¬

Mutual,

and Employees'
Retirement, W. Linton Nelson of
*

More than 25,000 new accumula¬
tion plans for purchase of mutual
fund shares

being opened
people building

are now

Shares;

Open

terprises,

William

tional

Street

Companies. At the end of October,
investors had 1,100,000 of these
plans in force with a value in ex¬

Fund;

Member¬

month

each

and

according

Association

the

en¬

Na¬

Investment

association

with
vice

105

popularity

these

National

Richard D. Lundy

Lundy

formerly

under

at 2

the

Goodwin Ave¬

management

Cronyn.

Jamieson Adds Two

representative

Atlantic States.

three-quarter bil¬

registered

(Special to The Financial Chronicle)

the Long Company in the

and

Security

Company,

South

growth

one

ciated with the firm as

representative for the past three
years,
has just been elected a
Vice-President of Walter J. Brand

Elizabeth S.

lion dollars. An indication of the

Tri-

Wis, — Konrad C.
has been asso¬

Testwuide III, who

nue

De-

La Salle St.
M

outstanding

By Walter J. Brand Co.
SHEBOYGAN,

Tamble, with
headquarters

was

were

cents for

;

branch office

regional
president

Martin

reserves

period.

W. A. Gardner Branch

Studies,

1958

RIDGEWOOD, N. J.—W.A.Gard¬
ner
&
Company has opened a

Central States

cial Industrial Fund; Institutional

Brown

the

Bank Building.

cess

share before appropriations to

ship, Charles F. Smith of Finan¬
Fred

per

North

the

their investment in American

William

1959, pro forma

represent

the firm

ended Sept.

net earnings

30,

Testwuide Named V.-P.

H e

sponsors.

will

Chicago

Delaware Fund.

curities Trust Fund; Tax, Edward
P. Rubin of Selected American
- end
Companies,
Shelley of Canada
General Fund, Ltd.; Insurance Re¬
lations, Edward B. Burr of One

$96,714,000.

serve,
The
Colonial

are:

S. E. C. rules, Joseph E.

land M.

fund is available from
your

current

income.

A prospectus on

the National

panies. Herbert R, Anderson, As¬
sociation President, is Chairman
of the N. A. I. C, Board of Gov¬

Incorporated
A mutual fund

Association

had increased

1959 the total assets

panies.

activities

multi-

the association were

The association has

faceted

the

1952 total assets

929,900 shares of capital stock of
$1 par value, excluding 234,900
shares held by the affiliated com¬

Fund; Closed-end CHICAGO, 111.—Richard D. Lundy
companies, John M. Schaeffer of has been elected a regional vice
U. S. & Foreign Securities; State president
of Hugh W. Long &
Liaison, John R. Haire of Fun¬ Company, Inc., of Elizabeth, N. J.,
one
of Amerdamental Investors; Federal Leg¬
islation, Francis S. Williams of i c a's leading
Chemical Fund; Public Informa¬ mutual fund

handle

Dec. 31,

trustees $1.37, compared with 78

which

for

Equities Federal insurance

mittees

selected

such ..real

with

Retirement

list

of securities

nection
loans.

elected

from

in con¬
e state

interest and fees received

For the nine months

appointed to the 1959-1960 chair¬
manships
of
the
special
com¬

1925

is derived principally

come

approxi¬
of mately $1,156,000 and at Sept. 30,

principally

liens on real estate
of purchasing,
and improving real

purpose

constructing
property of refinancing existing
loans
on
properties.
Funds are
provided by savings of individ¬
uals, institutions and others. In¬

dent of the Association.
it

the

for

of Philadelphia

appointed eastern Vice-Presi¬

of lending money

ness

$9.78,

A mutual fund investing in a

ESTABLISHED

was

per-share

net asset
compared with
$9.21 per share a year ago. These
figures have been adjusted to re¬
value

Continental

Investors

Fourteen top executives of invest¬
ment
companies have been

Corp.; Federal Re¬
Franklin
R.
Johnson of

Gibraltar

derwriting group headed by Kid¬
der, Peabody & Co. The stock was
Taylor and Otto C. Richter.
priced at $19.25 per share. The
*
it
it
shares were purchased by the un¬
Scudder, Stevens & Clark Fund, derwriters from a group of selling
Inc.
reports total net assets of stockholders and no part of the
$79,246,465 on Nov. 13, equal to proceeds will be received by the
$19.55 per share. This compares company.
with a per share value of $19.37
The company owns all the is¬
a
year
ago, These figures have sued and outstanding equity se¬
been adjusted to reflect a 2-for-l curities of Gibraltar Savings and
stock split effective Oct. 30, 1959. Loan Association of Beverly Hills
Scudder, Stevens & Clark Com¬ and the outstanding capital stock
of four affiliated companies. The
mon Stock Fund, Inc. reports total
net assets of $31,675,669 on Nov. association is engaged in the busi¬
A.

Charles

The Funds Report

offering of 325,000 shares
Financial Corpora¬
California capitalstock
made on Nov. 24 by an un¬

Public

trustees

Richard

Edwards.

FREE ON REQUEST

Stock Offered
of

Association has elected

Fund

small."

Gibraltar Fin. Corp.

tion

smallish stake in

EITHER PROSPECTUS

Incorporat cd

1951. He is a member of the New

-share from

investment income and 52 cents a

the statistics of the funds

fund chief who has

one

Edmund G. Young

sociation.

butions of

show, who retain faith. For this small band of faithful the rewards
carriers noted: At least the risks

ana-

income,

27.

Boston

and

some, as

curities

iySt specializing in the
electronics in-

payable York Society of Security Analysts
shareholders of record and the American Ordnance As-

investment

net

Mutual Fund Plan Sponsors, Inc.

to the fact that the carriers often are the

Young

senior se-

d u s t r y and
quarter has been with the company since

awaken

now

Mr.

Diversified Growth Stock Fund,

the accumulation

year.

Stock

Growth

Fund, Inc.

The

they are bringing home to Washington the
inequities in a society that pampers truckers while penalizing
railroads. And they are winning friends at
long last in the state
legislatures, which imposed ruinous taxes on the railroads only to

every

Fund, Inc. and
Diversified

fund's 107th consecutive dividend,

get
man-size

It is somewhat premature to look for the
glow of health in this

WASHINGTON 7, D. C.

x^iversi'fied

can't

Railroad chiefs have, as

previously noted, done a
job of cost-cutting. They are coming to grips with their passengertravel problems and they are
making a strong fight against the
labor feather-bedding that costs hundreds of millions of dollars

stocks selected from among those
of

may

Dec.

of record
*

flect

And it may yet be that better days are ahead for the carriers.

We will be glad to send you a free

Atomic

are

Individual investors too have turned their backs

on the carriers, which sold at new lows for the
year in recent days.
Symbolic of their state was the announcement last week by Penn¬
sylvania Railroad that it would again this year pay a token divi¬

Interested

shareholders

that the

and Seaboard Airline.

President

•

stocks

common

revelation

the

merit, their selec¬
tions have been confined to Southern Pacific, Southern Railway,
Chesapeake & Ohio, Atchison, Topeka & Santa Fe, Great Northern

stock of record December 3,1959.
I.

investment medium

kingpin carriers.

shunned.

profits, payable December 29 to

WALTER

^a*d-

jesitment aa^

eight cents a share from Fundamental
investment income, payable Jan. 4^,
+
T
.

The

less

share from net-investment

share distri¬

Oil TIP*

AUU11&

com¬

Actually, their vote of confidence—if it may be called that—
resounding than even these figures would indicate/ For
only 70% of the $800 million investment is in the common stocks
of the railroads.
Th balance is in the carriers' bonds (23%) and
preferred stocks (7%).
is

can

bution

of the total net assets of all N. A. I. C. member

A measure of the low level to which railroad

dend of

vestment

pouring

have

income, and 48c

large degree of

In-

Institutional

Fund, Inc., declared a divi-

like every other car builder, now has
diversification, but the carriers aren't dead.
company,

panies.

quarterly dividend

HilppXR

-^*^1/0

ment Company, Inc., Westminister

come

consecutive

13c-a

Directors

1953, the chief executive officer of a major railway
carbuilding company engaged a newsman to take a walk in Wall
Street. His job was to find out what investment company leaders,
bankers, brokers ana analysts thought of his company, nis industry
and its customer, the railroads.
The newsman, somewhat sheep¬
ishly, was forced to report that the car builaer either would
diversify or die since it was serving "a dying industry." That

slim 4.8%

ago,

Fully Alive Either

Back

FOUNDED 1928

is more than

Five

eacn

been with the

has

that the 12250,000.
there were less

ago, so

month rise

JLTofJ uVLrfthl?nnnun Young has been elected assistant
eth Zlf'
7
secretary of Investors Manageyear.

Hugh W. Long & Com¬
pany, Westminster at Parker.
Galvin

year

by the fact

about 830,000 in

were

years

Thursday, November 26,1959

™

Miss

fo^e TheThave belf increasing ELIZABETH, N. J.-Edmund G.

ELIZABETH, N. J.^-Ann V. Gal¬
a vice presi¬

vin has been elected
dent

pointed

there

force

Financial Chronicle

for

Middle

MINNEAPOLIS, Minn.—Roger G.
Lindquist and Thomas M. Shafer
have become affiliated with Jamieson

First
Building.,

Company,

Soo Line

National

Volume 190

Number 5902

The Commercial arid 'Financial Chronicle

WE SEE IT

(Continued from

••

*■

page

'* '

•'

and

kept pared that way. What niakes the outlook more
disheartening is the fact that the rank and file have now
become so accustomed to such super-extravagance that
the extent of our departure from what we all used to
regard
and

the

sound and

inherent

is not realized

sane

danger of such

understood

formal Tisfcal. figures already cited are, of course, well
kriowhJp the matriculate. They are properly understood,

the situation that
the

advent

Dealers. Here

Roosevelt. and his followers brain-washed the American

public. It is

very unfortunate that President
does not marshal his enormous prestige more
and

PHILADELPHIA, Pa .^Woodcock,
Hess, Moyen. & Co.yJhc., Fidelity
Philadelphia
Trust
Building,

Eisenhower

consistently
effectively in behalf of budgetary frugality.

members of the New York Stock

Exchange
B.

are

Franklin

Roosevelt

3.6%

and

his

New

few facts which should somehow be

all. There

Federal

plenty of others,
the stat& of affairs

are

but these will do
very well to show
iritd"which we have drifted during the
the

past three decades.

Government took

for

its

use

some

of the total output of goods

and services in this
country. By 1936 after the New Deal had been well under
way it took 6.0%.,.The figure had risen to 12.2%. by the
time

were

into World War II.

drawn

With the

war

the figure rose to 18.6% in 1946. By 1952, the last
before President Eisenhower came into office, the
national government had increased its take to 19.5% of

won,
year

total

output.
of

the

course

Eisenhower who had made

of events

under

President

much of the.

necessity of
getting the state of ouifnational finances in order? Well
by 1958, he had beenpble tohmit a great rise in outlays

sufficiently to hold
creased

tnem^oahouT^7.8% of

vastly in¬
/And if what is now
a

volume of national output!
being said about the budget for nextr year proves accurate
the percentage figure could well be back at or about its
postwar peak! The Director of the Budget speaks of "built
in expenditures" or
something of the sort, by which he
presumably means that acts of Congress in years past have
laid a heavy burden upon the
country for next year. Of
that we have not the
slightest doubt. Neither do we have
any doubt that unless something effective is done Con¬
gress will next year and the next and the next continue
to make very difficult
adequate cuts in outlays during
succeeding years. It is an old, old custom to arrange for
expenditures for future years while leaving the year's
budget immediately under consideration relatively un¬

we
-

French,

result

the

Board

of his
of

suspension by

Governors

the

Figgatt

the

firm.

election

Arthur

Fred¬

of which Mr.

and Beverly Hills,

Frederick is Presi¬

dent, Treasurer and Director;
and

Baltimore, Hollywood Beach, Fla.,

in the securities business,

engage

McKnight

McCarthy & McCarthy

Secretary

the

ness

financial

consulting

turned

the

for a

are:

owned

and

Secretary-Treasurer.

in¬

NEW

business.

Frank

Officers

Stephen

ties

business

Frank G.

from

offices

Street.

Commerce

ston & Co. and Foster & Marshall.

Secretary.

November 26, 1959

ISSUE

500,000 Shares

CAPITAL LIFE INSURANCE SHARES
AND

GROWTH

governments have been and

are at it, too. In 1929 these
governmental units expended about twice as much
as did the Federal
Government, 7.3% of total output of
the nation as against 3.6% for the national
government.

FUND

STOCK

(Par Value $.01)

A class of stock issued

The increases since that far-off
year have, of course, been
more dramatic in the case of the Federal Government—

World War and to the relative

ease

CAPITAL SHARES, INC.

treasury could raise funds with the aid of the

disturbing enough. By as early as 1936 these units were
taking about 10.4% of the total output of the nation. War
conditions naturally held them in check for the time
being. By 1950, however, they had again reached their
1929 percentage despite enormous increases in total na¬
tional production. In 1958, at 9,4% of the national
product,
they had well passed their 1929 mark despite very large
increases in national
Now unless

output.

we are

ready-to accept the notion, deeply
tinged with socialistic or communistic philosophy, that
government (for which read the politicians) knows better
what to do with the
product of our labors than we, the
individual citizens of the land do, then there is
something
very disturbing about this apparently endless growth in
the part of our output which
goes each year into the hands
of government—well over a
quarter of it in 1958 and still
on the
rise. Obviously here is a matter which is
quite
apart from the question of a balanced budget. Of course,
if we must pour all this into
governmental operations,
then certainly in times like these there is no shadow of
excuse for not
meeting the cost out of current income
rather than merely
adding to the debt upon which interest
(at rising rates) must be paid. But whether so met or not,
it is far too large a part of our
product to turn over to
the politicians.
The situation.is

really

good deal worse than such
figures as these would indicate. There are vast contingent
liabilities of one sort or another
already existent and many
more
being accumulated year by year in the form of loan
guarantees, so-called insurance, and most of all in the1

Offering Price $10 Per Share

(in single transactions involving less than $10,000)

Fund, whose primary investment objective is long-term capital growth, will become
open-end investment company after delivery of the shares being offered. The Fund
seeks to achieve its objective through investments in companies believed to have growth
The

possibilities, with special emphasis on companies engaged directly or indirectly in the
life insurance business. It will also invest a portion of its assets in securities of com¬
panies in other industries which it feels offer unusual opportunities for capital growth.
Shares of the Fund will be offered to the

headed by

public through

Shearson, Hammill & Co.

come.

payments on social security
These facts as well as- the

of underwriters

a group

Exchange

registration statement relating to these securities has been filed with the Securities and
effective. These securities may not be sold nor may offers to

Commission but has not yet become

buy be accepted prior to the time the registration statement becomes effective. This advertisement
shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any

unlawful

sale

of these securities in any State in which such offer, solicitation or sale would be
prior to registration or qualification under the securities laws of any such State.
'

Phone

write your

local broker

for your copy

dealer

the undersigned

of the Preliminary Prospectus.

Shearson, Hammill s Co,

form of commitments to make
account in the
years

with which

banks. But the figures for state and local governments are

14 Wall Street, New York 5, N. Y.
REctor 2-6000

Officers

24
are

Donnelly, President and
and I. J. Donnelly,

Treasurer,

was

Donnelly Opens

NEWARK,, N. J,—Frank G. Don¬
nelly, Inc. is engaging in a securi¬

(Amount currently being registered)

Municipalities, Too

formed

•

formerly with Wal-

McCarthy

dustry in India.

PROPOSED

Building.

Stephen D. McCarthy, Presi¬

President, and Lois B. McCarthy,

was

private

dent; Terence K. McCarthy, Vice-

recently re¬

management consultant to gov¬

ernment

Securities

busi¬

from India where he

has

B% Crandall Co. with offices
at 82 Beaver Street, New York
City, to engage in a securities

securities business from offices in

engaged

in the Los Angeles area

Crandall

McCarthy,. Inc., is engaging in

number of years and

Wash. —McCarthy

Director; and Virgil F. Every SEATTLE,

Mr. Frederick has been

Form H. B. Crandall Co.
Harold

is Director.

•

Calif.

smaller

were

Unfortunately it is not only in Federal finances that
suffering from this extravagance. State and local

the national

Messrs.

New York Stock

are

thanks to

Vice-

French, Devoll and Figgatt

formerly associated with Bache &
Exchange, Jacob Co. as registered representatives
erick, representing the firm, of A.
M. Alkow has resigned as Presi¬
in their Philadelphia office.
R. Frederick & Company, Inc., to
Mr.
dent, Treasurer and Director of Devoll will be in
charge of the
membership in the Pacific Coast
Alkow & Co., Inc., 50, Broadway,
firm's Trading Department.
Stock Exchange, Los Angeles Di¬
New York City, members of the
Harold P. Woodcock, President
vision, effective Nov. 19, 1959, has
New York Stock Exchange.
No of the firm, also announced that
been announced by
William H.
charges w,er.e brought against the Matty Edison and John B. McJones, Board Chairman of the Di¬
firm itself.
^
vision.
Clure,'
formerly . of •HalloweD,
The
company
has announced Sulzberger, Jenks, Kirkland & Co.,
A. R. Frederick & Company,
that it will continue all of its have " joined
Woodcock;
Hess,
Inc., with offices at 1416 Westwood
Boulevard,
Los
Angeles, business operations, including its Moyer & Co., Inc. as registered
branch offices in New York City, representatives.
Calif., is a new firm organized to
The

burdened.

States &

Exchanges,
of Harry
Frederick V. DevoH,
election

Jr. and Marshall

Alkow Firm to Continue

Coast Exch. Member

other

and
the

Presidents

Wallace

And what

A. R„ Frederick & Co.

definitely come for a new hard look at
has developed in our national finances

seared into the souls of

1929

f *

Time for New Hard Look

ofu%

afraid, by a small minority—so far have the NeoKaynesian doctrines and the preachings of Franklin

announce

The time has

-■

Join

perceived.

since

we are

situation is rarely

(2215)

The Commercial and Financial Chronicle

(2216)

\T771TI7n

yX-f,

f KJ

divided profits to approximately
81,750,000. It is estimated that

DATTrP
111 111 I

\| Hi VVn

Xl.Xyy w

Total

Reserves,

New Branches

•

New Offices, etc.

•

officer of

Board

Directors

National

The

City Bank of New

outstanding
*

shareholders at the annual meet-

each

Comptroller of the Currency
approved the merger of the Central

will

holders

payable

record

Nassau
New

time of

The issuance

of the

12,000,000 shares with
a total
par value of $240,000,000
to 12,240,000 shares with a total

value of $244,800,000. The inwould be effected by a
of $4,800,000
from undivided profits to capital.
par

crease

transfer

th^t

expected
will

annum

the

The

First

New

York

i^ov.

will

trtpc

open

sixth

sunervision

the

Company,

Board

Chairman

York

Harold

nounced.

has elected

New

York

sentative

Helm

has

opened

Place

Vendoine,

Nov.

an-

Flamgan,
Chairman
of
the
Board,
and
Andrew L. Gomory, Senior VicePresident in charge of the Banks
.international banking department,
,

•"This

ure,"

enable

for. business

Frankfurt

Main.

representative

and

Middle

•

i
J

Baniert

Giles and

dents

Seott

namedi
was

by William H

Moore

fie

became

Chairman

'cScott,
^who

m
Mr.

the bank

National

Bank.

•' v

■!'

* '<■*■
-

•

■

-: a-

•

.*•

Director

the

Girard

Fargo

California,

w „.■<•.

A I

**'•

•'

VI AHaPlV
^ U
>>

pA"n\T"PD
1

shareholders

<V-r

fv l\ P1 l\i

„

A "VT'O

annual

TDTdN

;

✓

nTTTTHN

!•*".'t/'""''■

===

—

small

as a clerk in 1910.

Directors

Street

Broad

the

among

v^ "

monthly or quar-. Mutual Funds, which the father
into stocks and Mutual of this family might have bought
to
encourage
thrift investing $40 a month in stocks

sums, on a

ment

There

masses.

the opinion of

Trust

industry

also

in the invest-

many

that

the

Funds.
A

About

Home''

About A Home.

broader

Trocisuror, Alfred. C. Achtert As- ily

Central

The

National

endorse.

Ressrdless

these

seemsSto°us

considerations, it
that
there are other facets of this proposition that are deserving of seri-

Bank,

ous

Cleveland,

consideration by ali those who
in the distribution of

at the age

retirement

chief

succeed

Mr.

administrative

Butcher

*■

Mr.

officer.

■.

eneasied

>><

Johnston

stocks

common

the

general

and be directed toward
objectives that are most important? If so, can anyone seriously

the New York Stock Exand

winner of

the international banking depart-

When it merged with The
County
Co. in 1947, Doctor Hughes
became President of the combined

Presidents in the banks banking these worthwhile vehicles of indivision of the First
National vestment are only suitable for
Bank

of Chicago, 111.

elected

*
By

Butcher

with

came

President

Execu-

1946
two

and

years

was

with

the

sale

The

First

who

aration

stock,

the

Wisconsin,

should

capital

increased

stock

its

from

common

$400,000

have

for

first

certain

made

families.

all

Fn1.

family.
Tho-e

• ;

Who

Onalifv

,/Goo« f °V Those, Who Quality.

For those investors who have
reserves avaUable ioi\hJLe.§ eyner-

"thC; MUHxaI Fuq.d
™mJiT Ttlon/; •
^ a"
'Monthly Investment Plan SP°P"

sored by.4he New \ork S.ock
those^Exchangq ?re very^^^vorthwhile i>:

"plans"

only. be. 'offered

who have prepared for such

faced

are

These

Goori

prep-'

funda-

very

mental eventualities that

First National Bank of Janesville,

<ums'l.
ddced;v,ihrougIi t dtver§incatiqn,
a protracted period and the unf^anagemeiTt, and dollar ayeragpar value $50.)
. timely
demise of the bread-win-. inS in the Fund piahs^. '..Guidance
•
*
*
mer. Unless, in addition to ample
ahd selection or gooa, stocks is
The merger of the Citizens-; Na- life insurance, a family has a
by
$500,000, effective Nov. 10. (Num-, gencies

emer-

the loss of income for

ber of shares outstanding 10,000,
.

Durham,^North

reserve

Carolina, with common stock' of
$250,000 with and into Durham
Bank

and

Trust

Co.,

•

North Carolina, under the charter
-

Na-

.bank,

fund .in a good: savings
Savings and Loan Asso-.

^daea^^aavaut^e- oi doiiqr avei-.

ciatiqn,

too-

or governments, that will.;a^nS
Durham,< provide for at least six monfhs of .yal.Yod

Co., effective Oct. 31.

':!

those

*
new

p an,

and

•

and title of Durham Bank & Trust

the sound monthly
quarterly accumulation plans
offered by the Mutual Funds, that-

ment and C. F. Newhall and G.
W.
Miller
were
elected
Vice-

change,

founders of the Washington Irving
Trust Co., Tarrytown, New York,
and became its President in 1934.

elected Vice-President in

stocks

sored by

Vice-President in the Rank's loan- I have discussed the most excellent
ing division and Mr. R." K. New- "Monthly Investment Plan" sponwas

T^commend^ common

those who have not also-set up a
through life insurance of
I^lortgage :retirement in case of
the premature death of the bread-

the securities business with whom

Hughes, the retiring chairman, will have completed 33 years
jn
banking. He was one of the

hall

large moitgage. Possibly this^
*s old fashioned thinking. But
should mot all investing have, a
a

purpose

It is the observation of many in

elected

was

^ftdrt^sges, 10% ecftiitie^ ^nd other

such "arrangements, is not eve-y
family, in a sounder financial posil10n with a large equity in their
home rather than burdened with

living

for

expenses,

them

J1--

in handlin&^Tnese accumji^
it, is pot advisable *at101? pmns
small consiaering
acquire
common
the^lfne and detail .involved, yet

stocks under any plan.
•-.../. In the case of a young
.

man

:who

this is a service that is willingly;
offered by progressive myestment

the

Bank's $25

par value capital stock,

The

was

than

Bank

80%

the

stork

favor

voted

Commercial

Bank.

advocate that he invest even $40
charter^a month in common stocks unless

Ch arlotte

North Carolina, under the

and title of American Commercial
Bank

effective

Oct

eliect!,ve 9ct" |0' -

he has first acquired sufficient life
insurance

family.

protection

for

his

This would require that

^>1* who

•

foitified \vit^ a reset\e of Savings
and life insurance, and-They have
H .any^Pf tnpse people \vish

investigate buying common stocks

th?
proposal. In accordance with The Alamo National Bankof San the'family's living expenses; were .«> ^tCo^X^he "Fuitd^orAhe
this action by the
shareholders, Antonio, Texas, by a stock divi- at least protected up to 7o ,r of t.Monthlv Investment Plan " I am

joined Bankers

IXiated^ith the^ Bank's8Trust hoMe^n'f
the,,,sha^' dend-i'lcreascd its common capital 0fefrsure that they will be welc.ome to
DlpanmentsincetharhmeHe losubscrfbepro r^amihe sfooo
from $3,000,000 to $34(75,000. basis ™ost families would need call at any broker-dealer's office
became
Assistant
an

the

Trust Officer

Bank

1943

and

The

Bank

given

York

Tm«f

v«rl

Comoanv
was

aonrovarbv

the

New

State

Banking Department
to.mcrease its capital stock from
$487,500 ^with shares of 19,500 par
value

Thlre is
in

Westhnrv

$25.00, to $609,375. (Number

shares at $53 per share

rights

'
*

new

Trust

Officer in 1950.

"
-

•

A.' •' V-

T?lO~lV IT

•-

A "T

V!pp-

...

Jr.,

the ..Wens

„

SHI A
K
Y
yiJ v v Xy*.i-.

Senior Vice-President of the

pIppIpH

nTIATTDTm^r

Francisco.

San

Bank,

—

Ausau,

*
wac

. *
-•;' .
President of

Rrinrk

branches

ated by their present officers and
as

Au.„rey

Santa

B"rslM™»
B"iik, Santa Monica,

tor of the bank. He fills the vaCommnn Sensp anrl tVWv Small Investor*
cancy created by the resignation , ;
common Dense ana me Very Dmall investor, r
of J. J. Caprano who has leached Qne of
worthwhile objectives had been bequeathed a few hunthe age of retirement. Mr.
those who conscientiously are dred,
or
even
several thousand
Capiano is a retired officer. of advocating the investment of
very
dollars worth of common stock or

tal funds through the sale of
q00
additional
shares
of

officer of the

•

would be Nov. 30, and that
banks will be oper-

members A

thp

President, announced.

merged

of Jersey City, N. J. The consolidation of the First Na- jf beginning, to make his way in
at a special meeting Nov 17 ap- tional Bank of Raleigh, . North Me^ahd who has several small
proved a Proposal by the Direc- Carolina, with common stock of chrtdren, I doubt if any co.nsdien-.
tors of the Bank to increase eapi-"'"$200,000 with and into American tlous investment salesman would

»>raman,

MnS'hi« cl'rpPrTfth
I
Is career W1fh

Citizens

Calif.,

the

recently

was

tional

Announced

mU*
Giles, 'w
formerly a
trust
officer, has been connected with
Mr
Mr.

1929.

31,

*
*
Shareholders

hnth

Vice-Presi

Chairman of the Executive Com-

effective

Dirprtor

later.

Trust

were

Nov

succeed

He was named Vice-President in
1851, Executive Vice-President in
1857 and became a member of
the Board of Directors a year

the

staff

The County Trust Co. since 1937.'tional Bank

••

York

the

on_March 7,_ 1960.
The new President, George -H..
Brown, Jr., was elected a Direc-

The

Jobn A. Kley has been

maintains

headquarters at Rome.

previously associated
with The Central Trust Co. in
Cincinnati, Ohio.
*

The

for

East

merger

Chairman of the Board. James E.
Gowen,
who
has
been
Board
Chairman,
has
been
elected

the

Gelbach as President to succeed public
Mr. Ben F. Hopkins Jr. Mr. Gel'
bach remains Chairman and Chief
Savings Should Have A
Executive Officer.
Definite Purpose

ago.

being
in London, Tokyo, Rome

Bank's
Near

win

bank's

was

t
The Paris office is the bank's
fifth Representative Office outside
the United States, the others

located

195?

William

tive in charge.

and

Bo3rd

The County Trust Co.
tive Vice-President in

announcement
said,
Durr'is the representa-

the

Chairman.

the

Tibor

expected.

dent since 1948, who now becomes

institution. In 1957, he was elected

pleas-

Vernon,

Dec.

clients who travel

our

France

Trust

the ever-increasing

serve

mumber of
to

will

move

better to

date

lion

Dr.

announced

is wa$

Horace

department.

Bank

was

bank, will become Vice-Chairman
of the Board following his elee-

of 65, under
plan.
Kley, Executive VicePresident since 1957, was elected

Repre-

Paris

National

were

John

Company,

pipMpH

that

Co., the bank, having completed al-

Trust

trust

President

Trust

Office

"Chronicle"

Edwin M. Blakeslee

First

pending
his "retirement,
active service on May 1,

resources

Chairman, Bank of Whittier, and
Malburg, President, The

Ohio, announced the
appointment of
Mr.
Loring L.

Manufacturers

the

Whittier

zens

Joseph E. Hughes as head of the
bank.
Dr.
Hughes
will
retire
the

their

g]nce

Malozemoff to its Advisory
on
International Business,

Plato

approval of
given in the

Bank

Leonis C.

23.

Treasurer and John
N* Y" by the bank's directors on Wagner, Assistant Secretary.
Nov. 18. Mr. Butcher, President
*
"
•

Trust

York

Nov.

Pa.,

re-

$6,059,753.

Roy A. Britt, President of Citi—
National Bank, H. C. Dolde,

Ex-

^ounty Trust Co., White Plains, sistant

GUlllerm°

New

Chsirmsn

under

Guillermo

Howlrd

Bank

Corn

meeting■>of

.......

coun-

Ar^pntins

will

Mana-er
xiowdia, iviandtoex.

Chemical

Trust

Philadelphia,

showed

of
$567,497,874 « as * of
1959. On the same date,

distant Trust Officer in August of Co., Philadelphia, Pa., announce the participation in the ownership / Should not each family, that
lhat year, and Trust Officer in the election of. Michael J. Brett of business, the greater will be the ^wns their, home strive to build
-Dec> 1852.
as Vice-President, _Stuart Whit- general public's allegiance to traa, substantial eqiuty ,in this
""
w?,1]'
S,1S
Vice-President, ditional American capitalism, valuable property. Despite the
William L. Butcher was named William R. O Donnell Assistant Both of these objectives we heart- Proclaimed virtues of long-term

branch

new

2002.

issue

was

came to Long Island Trust Co. in
July 1950, and was named As-

branch

its

ur\cl

The

page

number

Bank

Girard

Bank,

National

Sept. 30,

$12,802,057 and The First National
Bank of Vernon's resources wele

shareholders

approved

' a
advanced to most lifty years of seiwice which teriy basis
the fiduciary accounting section began when he joined the stall FUr^s> [s

overseas

SrooJ.Jyn'.

Cordoba—Argentina's
second largest city. It is the bank's
81st

Nov.

£,aree.r1 at

City

Executive

now

the

♦

National

Chief

Citizens

of all three banks.

Na-

12.

stockholders'

per

increased

Brook

and

tional Bank of Nassau County, ef-

of shares.
«

been

fective Nov.

per

has

addition, President Smith announced that George R. Clark,

cash divi-

conunued

present rate of $3

Calif.,

Jr.,

Thursday. November 26, 1959

sources

Bank, Los Angeles,

National

jointly stated that it

from
1960.

and

charter

Meadow

The announcement is made by
Geoffrey S. Smith, Girard Presi-

mittee

Bank

*
*
*
James C. Waide, Trust Ofifcer of
Long Island Trust Co., Garden
City, New York, was promoted to
Vice-President
and
Trust
Officer at a meeting of the Board
of Directors Nov. 18.
Mr. Waide began his banking

stock from

dends

under

The

the consolidation

new

The

and

National

County, West Hempstead,

The

increase the bank's capital

would

Great

Co.,

York,

Brook

York,

title

obtaining the necessary approval
by the Comptroller of the Currency, which has been requested
for Jan. 14. The, Comptroller has
indicated his tentative approval.

Trust

and

New

Meadow

share-

the

Bank

Neck,

presently out?

standing. If voted, the stock dividend

par

.•

The

ing Jan. 12 vote a stock dividend
of 240,000 shares to be distributed
to shareholders in the ratio of one
share for

48,750

value $12.50 each.)

"iTork recommended Nov. 24 that

*•

Brown,

President

effective
First

elected by the Board of Directors

change
The

$14,-

zens

George
as

amount

Revised Capitalizations

•

will

938,000.

BANKS AND BANKERS
Consolidations

At special meetings held Nov. 19,
the merger of the Bank of Whittier, Calif, and The First National
Bank of Vernon, Calif., into Citi-

Capital Structure, including

this
wtK

r«

will
no

expire

These

Dec

3
sa'e
new s'ock from $50,000 to $75,000 of life !or the help they need - in. orde
from $8,375,000 to $3,750,000, ef- insurance as a minimum require- to select suitable investments to

-h

thl Run'J

1Qnrnn

+•

^re
they could be in a ^et heir requirements
to buy common stocks.
I believe that the investment

fective Nov. 6. (Number of shares

underwriting

offer

outstanding

comPletlan uof thl? $20.)

nu.1Jriber of,shaF®s

187,500,
*

pai

value

position

Even ^40 a month Will buy over
$10,000 of life insurance for the
young family man if he is insur-

of
savings should be planned-and
directed, so that those who invest

have the best investments for the

from^lSO^OlMo 220,000e ^al!fr ^ Has^ Jr-» and Grover able- Certainly his family, would ^eunr|°Je. wfth^his^recep^no
proceeds
will
increase the

increased
The

D; Turnbaw, have been elected be much better off with

capital of the Bank to $5,500,000,

Directors of the Bank of America,

surance

surplus

N. T. & S. A., San Francisco, Calif,

them

$5,500,000

and

un-

were

prematurely

life

taken

than

in-

from

they

vestment
service

;

salesman

his

who

clients

conscientiously disagree.

in-

places
first can

Volume

190

Number 5902

The Commercial and Financial Chronicle

(2317)

25
■fy
t-w*
<S

ing the issue of inflation.

Commercial Banks Victims

While

Our Reporter on

there is much that is superficially
attractive in inflation, its ultimate
results will be harmful to

our

peo¬

ple and to

our economy, and will
destroy basic values such
thrift and responsibility,

tend

Continued from page 15

„

creases

the

competitive

the

factors

request.. Exceptions

required

mergers

wnidd
c

iti

United

Chamber

:do

.".'

changed.
;

Another

sored

hill" H

for

Tax

taxa-

th-

of -great

hnnkc

nf'ffpp ptifprnrisp

signed

al^)
alsto

brin«*-'

nf fav

about

lhpv

pnimiitv

P^ce
and

monGv.

recent

exnerience

re^StoS

bond

^^"nsS thSS

bonds will have to keep
of pace with the
•
interest rates or there

savings
some

"semblance
of

trend

in-

"\ust

priceless
*"■li;t;icss

tor Dor

the ernments.
Tax switches
continue
to
be
made,
with no general

confidence

pattern discernable since the time

(5) We must achieve a budget

that is in balance or better durin§

^ respond^ to suddIv and'

these

for

—

prpdit

frpp

of
ut

incentive
"i^uuvc

in M/1_,
the value of money.

for bor-

exchanges

limited

Buying of the hi^h Cl

now*

.practices'" in organized labor^in
recent session of
.5-^ ProErams' or

of .the

marketable

ment
...

•

non

testers

cmQn

with

bond

te wbich would

an-

both large and

nkp

small, like the 5s of 1964 did not
not
long ago, might be one of the
ways jn which the price-sheltered C
so

^ ?sharb

and

le-

are

6.zo /o inter

for economic growth.'

eSnee

Sometimes

with

them

tax

4%s
be
a form of "advanced refunding';' '
bonds to since the former issues are not *
"IT'
bonds due until
next year. Also the-

for

tnem

increase the debt limit

dependent upon the fruits of savings put
in former
put by
uy xu
xuuiici years."
.yccua. -

the request to ^
raise the
mc in-

on U. S. SavChecking inflation is a vital
bl^s Boncls- But R
no1t ac^ problem which has received great
upon
request to remove the emphasis in the year to date. The
,1/ %

which

nnhlic

has

shown

interest and

of wtiTconZeledto

°S

-namSv ' the "E" bonds
Unmatured "F'^and "J

a little lnnauon is gooa exenange

•

^rest rate ceiling

wnuM

sapstantiany tn
to thp
the

these

basl Vat^a little^

confrasf

^ n^les

to; Con-

•

The offer to exchange the "F"

Surprise Offer

tor

the

and

advantages,

deferral

ownerg

tbe

owners ui ine

and

d«a

who '
wxiy

tben? ^
nLl ^o^crl
about 5% from ^
5
the savings bpnds
'
^ tg5,0. Af'ter tha^t they wil1 ®a^
(the offering price is 1

raisins

for the. 4 A%

date May 15, 1964.

operation of the Treasury. But, as

expected, the Government
made public
meni
made
puuuc
the
me
way
way
xn
in
which it was to obtain its December
a

been

through

money,

111

bill

Treasury

320-day

nf «

note)

to maturity. •
V
.

Next Treasury Borrowing

Early Next Year
The

-.Z116

offer of
in the

ThPse

hillinn

«*

m.t

iny n°rts of tho new monev

had

•

the interesting and surpris-

were

„„

Quest

TiY_

an^

are coming due next year into a
marketable issue was not in the

.^rein
to incentives to save, to could
have a restraining influence
work, to produce, to invest. •
on the buying of near-term gov-

nLd
paid

a'greatnr

QuiWtantiallv

add
add-

the

(3.) Increases in the temporary are least in
position to do anyand permanent public debt limits, thinf?" about it
those retired and
TKe
.al'
The
Congress acted on the re--living on fixed incomes, people

n,tr

real
with

which

bonds

unavoidable; for in- along with the offer to holders of turn
m't? "
"
i
*
a\/^ v r'stance> in times of war. But no $1,600,000,000 of the "F" and "G" earn
5
Removal of the 4^4% inter- thoughtful person, at any time, bonds; which come due next year,
^.st J^te ceilmg on new issues of- should invite it. Unfortunately, to turn them in for the niarketmarketable Treasury Bonds.
inflation hits hardest at those who able 4%% note due May 15, 1964,

corn-

inH^

nnH

in
not

savings

convert

rate ceiling on, XJ. S. Savings .-inflation;ds

the

sv^tem

dpsrpp

their customers

} J ttemovai ot

•-

others

...

importance

mpiviai

nntifm

m) Removal of the 3 26% inter-

-ennn-

:ahri

growth

achieved

advantages, as well as the option

wi^av^gs

■

proposal
gress "requesting:

Rankers CnmVnit-

Emialitv

realize that long-

deferral

tax

withincome

bond

the economy into a quick boom money market is still showing a likely take advantage of more
which can later injure our long- strong demand for the most liquid favorable situations as they apruri capacity to produce.
Treasury issues. However, need pear.
'
/
"(3) "We must give maximum for funds for inventory purposes
Th
u
f
long.term Govern-

bankers

three-point

iaeu

service

'year during the

introduced June 24, 1959, J>y
Representative Noah Morgan Ma
sori of Illinois.'son
Iilincuf.. Its provisions are
ar
■

amone

Bankers

was

our

IrdbDendeht Bankers

Association'the
tee

"7Q^o

-American

The

Association

with

This being the rase, the. P^sof high-level activity.
issues is still brisk, as are pur- ^ conver^d Tnto llst7nTmatarU
primary determinants of interest
(6) We must he wiHing to seek chases of certain of the .2
t;es of the Treasuries.
r«gs ate the actions of millions of out the impediments to growth in obligations which come due in the
.
individuals and institutions rather' ?ur. economy whether■ these are late 60s and'70s.
"Advanced Refunding"
'

has. to do

can

topart

but only without inflation.
. line of thinking .of; most.money
will be a rather steady stream of
"(2) We must not, as we come market specialists.
:*
cash-ins -since 'hiany'owners hf "
out of.a recession, .seek to force
The short-term sector of the Treasury savings bonds will most

au~

^mportaut legislative Congress,
the President presented;
a

Coinmiltee

demand!

tioli of the House Ways and Means
The

-^ s. ls 1

VGd

matter scheduled to receive atten-'

tion

termg

exDianatioh'bf the'

-great

cubiect

vnwkots

fa'

'Ta.x

.....

1011 a"* no

•

Interest -iS tim mice

™

wwilnntpH
hn7nf ?nlfi

.'finiliti™

vnrln.

sgoufd

Reserve

Commerce..and the American Bar

^rs

Association.. At.the meeting of the

STIaf WofiaSv

Advisory ;Council*
States

which

;lu® ™^Pg °V^e®®

Bankers Association, The Assoe'atiori of Reserve City
Bankers,

_Fedefai

loans,

Federal

^^S?hf

ican

The

d0 not need-a'h

System, the Federal Deposit

the

guiding

„

addition, many owners of savings bonds do not want market-

by the
the Board

Treasury Department,
of. governors of the Federal Reserve

•'
looking for. On the other hand,
others the the offer
to
swap
outstanding able issues.
principles savings bonds for another savings ;
Nonetheless

"He suggested among

following

and many^of. ourJawmakers

actions

supported

and industry.'«

ness

-r-

which

mifta^nly^sCTUye ^^adrancine

fp give their

1062

^^rtnired^S^ve

iaco

of money

price

^
^ thinking:
if hea^urie^^has Hsen^harpiy^^et
p
y"(1) We must
contrary to
nJa^nv^nfbour°LawmatorV terrtl economic

consummated, .and

t^xuewspf the attorney General |fns

reasons

multitudinous.,

SU-

the

rate of interest
be paid to obtain

must

semi-

make

BY JOHN

are, provided, for
emergency cases.-demand
.The- supervisory, agencies would i.e., the

also

"Robert B. Anderson, Secretary

involved in a merger, and the Attorney General would be required
to furnish a report to the appro-;
pnate agency ^within 30 calendar

days

indebtedness

CHIPPENDALE, JR.
an(I the general problems created 0£
united States Treasury, reby similar increases in the in- centiy pointed out that the rate
debtedness of state and municipal of this country's growth and degovernments.: Clearly, we have veiopment and its capacity to
been trying to use our money and meej. the expanding needs of the The
Treasury offer of a 320-day not make the exchange of these
credit in too many directions, and economy as a whole are still es- bill to take care of the current issues for marketable ones somefor too many purposes simultane-. gentially anchored to the growth
year's cash needs was in line with thing that can be done overnight,
ous y. Ht should nqt surprise apy an(j development of private busi- what the money market had been In

ate,'-the Federal supervisory agencies would be required to
request
a report from the
Attorney General

Federal

operation

ne^L

the

"PeiaLlua

Treasury in the money market,will

were

early

when.-

1960

inor

new

obtained. However,
niPGi hi °

strikinsrelative
as

rotprrpn

difference

portion

competitive

-thp

hetwepn

the

of darnings

incSiS
birk« and

Federal

mercial

taxes

those

financial

'naid

com-

bv-

naid

ihsUtutions

such

as mutual savings banks and
savings, and-loan associations. The

figure*

the

;then* ouoted

referred

Ifve-xSrperiod 1952!l956

-Figures -for^1957
also
-

1958

and

striking....In

1958,

ex-

ample, insured commercial banks

597,000 to

reserves and

— ^

—

system and must be fought for.

Reserve

System

uij

combat

give

area

old

needed
effect

conflict

latitude

this

renewal of the

between

the

that the members of the

sure

advo- ABA's

National

Division

Bank

ItamTsolfdlv for^odrt^monev'
money

and

flpv.hlp

infprp*t

*From an address by Mr' Gidney be"

fore

rxtr*

^nd flexible interest, rates

the

American
Miami

Con-verition,

Bankers

Beach(

Association

Fla>>

0ct>

26>

1959.

Acquaintins the People
„

°nce a^m

■

account

loan

raiseu

.....

PSSPntia

and

inflntinn

growth-. is...to

.ic

iw,w.

K.,ei«^oe

the

commercial

short-term obUSati°n in its year
end

ever,

new

money

How-

venture.

•

JJUJ

b
swap
the savings bond
swap had
been
anticipated and even

UbUUt

by the Treasury

move

Scout

part at least of the sav¬
ings bonds converted into market¬
able obligations;'
:
/
•
to

get

Problem

of -Inflation \"-'vv

.oanKuig

groups in spreading a true under-

iHustraU6ii'vstaPdinS ot this matter, and we
of" the need lor changes iii-iax Pee.d the help of all well posted
laws to bring, about-equalization individuals and organizations.
I
Turning

,•

from

this-:

burden ? and-.to'.'Obtain

Shoidd'likc'io
mint cab" on
on
L "
aLommeiii again
I

com

thp

need for the best

ever present

efforts Of

tam

eve,-,-

one

the soundness -of

and to stop the rising

very

to ™in_

our

receive

money

spiral of

in-

partment
i
IF.

2^8.
3 Federal

•

been

bonds can

P*
m

„

and

these

-* Substantial Secs» Co.

HOLLYWOOD,

NORTH

Calif.-

Substantial
Securities Company
has beeir formed with offices at
K]

street

eneaee

verv

large

William R. Glore, President; Ejay
Shepard, Vice-President, and

Philip D. Terrill, Secretary-Treas-

corporatlbn
'The

Inflation

ri'

must

Heport

place

in-

the

record, to wit:

for

1958

-r- '
- Each, stockholder
m Texaco,
Annual Rnport (or lass Inc., has a real stake in whether
Loan

Bank

Board.

our

country is successful in meet-

—

offices oi Glore* Evans & Co.
,

...

Associated with the firms staff
are: Lawrence H. Gleason, Charles
K
Godfrey,■ Robert J. Magidson,
'

Charles

Pavis,

Irving

and Edward P. Traxel.

in for cash very

Rubin

higher rate of return that is

15, 1964), apparently is one of the
which the Treasury is

ways in whicn tne

ireasury is

the

cam?'!

chairman'
the

board

the New

maturing in 1960
turn

being offered to the owners of the
"F"
and
"G"
bonds which are

(since they can
them in for the 4%s due May

by J

paign, and
president and

has been a drain on the Treasury.
The

nounced
Clarence

Myers, gen¬
eral chairman^

readily
the
heavy
redemption
of
obligations in recent years

be turned

firm

-f

-----

tremendous

Annual

Home

thp

sp^raA, ^ inflation must be
stopped." It is so, good that I
The' Treasury" d7 stopped."
It is so. good that I "rer. Mr. Glore was formerly an
should
like
to

the
.

8 pi

was

^fthbytb® hiding
l

nHnpinal

much heartened 6«0 Klmnp Street to engage in a
recently a card sent to secuimes ousiness. wmccrs aie.

Association. I

,"inyAr,e.±warJi.efv^? Tnira
serious problems which have

been creai ed, for

„«

^^the°Cdmmitte^'fw
Economic Growth without intlaAmerican
Bankers
l.10n ?\. meT American
warmers

;

Government savings
«eip.

Capital

Camp Carn^ '
paign, it h^s f

•

acea

•

Scout

frnm

000v*«

VjJiaiXipiOn tO AlQ

Savings Bonds Equal to Cash

-.i

exchange involves not more than

" ""
-

;

at that time may

verv

little
doubt in the financial district but
what the Treasury would use a

start

$5,-:

600,

though the marketable section of

Sudler Opens Branch

we are in a situa-

w -,.a^
n-.iii
if

matiiritv

banks. There had been very

not

undivided

n-:::.',

vpar'5

one

tt-t

than

iess

wprp

£urplu3vv,^^ings-s^nd l}}e 'WBati°n that results; or- the
hssodialiahs,:
5oetations,:iite>b£T^(avffi^;fiextbie. interest rates,,, that are v Planned Programs Formed
Federal;Home Loah-^iik S\-sterp^;
"
^
'it li' h! Planned Programs, Inc. is engagpaid Federal income taxes of
profits

loan

v*.

well be increased since the deficit of
vigorously the inflationary trends since 1929. They were very well
^ Government due mainly to
which have become 80 obvious- received,
the long steel
strike, is quite
Sound money and fiscal integrity
This
issue
will
be
payable
jjkely to exceed the estimates ol
that the refusaI-of Congress to act are necessary to a sound economic through the Treasury tax and gj billion which are being heard,

net' *

total

~ ■

eral

income

out

;

Pulsion of law needs correction^,
w b e n . the . Treasury borrows,
money [t has to pay the going rate
of interest. The Treasury.believes

St!1
income taxes oftaxes
SI,198,890,000 ano state
of- $72,570^000:

c—

?ates of soft money and Pegged-will do their part in this battle.

were

for

^ -

which

funds

new
VGrii

of
of

York"

Life Insurance
George Champion

Company.
Mr.

.!
Cham-. |

ific responsibility in:
campaign, according to Mr; -.
wjU be ^ give leadership
savings bond so that they will to
two'major sections of the drive,,
exchange
them
for
marketable foundations and leadership gifts, ,
issues which will fluctuate price-crr»
ic
pvnpcted
imX
wise, depending upon the demand
The campaig
^Q#iA tv,.,:1for money and credit.
formally begin early in 1960, wiQ »
on,g

willing to compensate *»Wers of ^
^ Price protectedI Government

The

bonds

large- amount
that

are

of' savings' Boy Scouts' Jubilee

outstanding

does

year.

Anniversary^

The Commercial and Financial Chronicle

(2218)

risen 8%

Business Outlook for 1960
Continued from page 3

policies,

surance

lying
and
producing
children,
thereby again substantially rais¬
ing the rate of population increase
and stimulating our economy to

accounts,

billions

hundred

These investment and

of dollars.

savings media are those primarily
used

the

come

average

man

in the low and middle in¬

woman

further expansion.

bank

etc.—by several

while produc¬
has increased
only 31/2% per year. In this period,
the cost of living rose at an annual
average rate of only 4.7%. This
tivity

industry

sharp annual increase (com¬
pounded yearly) in labor costs,
accompanied by increases in raw
material costs and high tax rates,
has

put a "squeeze" on corporate

The continuation of

groups.

year,

per

profits (as a percentage of corpo¬
revolutionary de¬
these trends and rates of increases
rate sales).
velopments in machine technology
into
the next decade
will most
throughout all industry will con¬
In
1947
and
1950,
corporate
certainly lead to disaster of one
tinue during the 1960's at a high
kind or another and convert the profits (after taxes) in all manu¬
rate,
reducing costs,
increasing
were
5.7%
on
sales.
Golden Decade into one of repudi¬ facturing
efficiency, and raising our living
Since
1950
they have declined
ation and chaos.
standards—along with revolution¬
sharply—to 4.1% in 1951, 3.2%
ary developments in air travel
in 1952-54 (inclusive) and 3.5% in
Increase in Our Money Supply
with jet propulsion and in marine
later years (until 1959, for which
Inflation
is
the
increase
in
transportation
under
nuclear
data are not available).
total money supply at a rate faster
power, as well as exploration of
As a consequence of preemption
than the increase in goods and
In

addition,

space.

Since

services.
In

short, the decade of the 1960's
without doubt, truly become

can,

"Golden

the

has

Decade"—as

1939

our

money

stated earlier, in¬
creased 300% in face of a popula¬
tion increase of only 35.5% and an
supply has/

already been labeled by many epZr increase' in our real
goods and
pert forecasters—a decade of fabu¬
services of Only 130%. In fact, the
lous growth and accomplishments,
per capita increase in real goods
based op
in being,

economic

establish

and

already

provided only that
maintain

able political climate

favor¬

flation

has

that

1939.

plagued

since

W-e

sions, and my selfish and preju¬
diced
actions
of
our
powerful

in industry and
well as our monop¬

groups

agriculture,
olistic

sharp contrast,

been

capita

our per

has grown from
$267 in 1939 to (about) $791 in
1959, an increase of (about) 200%

labor unions—convert this

decade into one of con¬
fusion', turmoil, inflation and de¬
coming

pression.

Monetization of Public Debt
This

huge increase in our money

supply at
the

much faster rate than

growth of goods and services

has been accomplished to a

extent, through

sales

bonds and other certificates of in¬

debtedness

by the U. S. Treasury

to commercial banks of the

major

Federal

which

nation,

for them merely by
The Cold War and Disarmament crediting the government's account
with corresponding deposits — a
Defense
expenditures
of
the
bookkeeping
transaction
Federal Government in 1959 will mere
run
close to
10%
of our Gross which is the equivalent of print¬
National

in 1939. If the tensions
War should

and costs of the Cold

to ing-press

compared

Product;

only 1.3%

substantially eased and

and' practical

safe

disarmament

pro¬

become effective within

gram can

the. next few years, Federal taxes
be reduced sharply—both

in¬
corporate
income
taxes. It would at least be possible
to reduce the corporate rate from
today's high level of 52% to, say,
35 or 33V3% (compared to 12%%
in
1929
and
[about] 37^% in

can

dividual

and

1939). The individual income tax
could

reduced

more.

even

Even these lower rates would con¬

tinue
to

produce

those

rates,

and

higher

real National Income

as our

(without inflation)
year

equal

revenues

earned

now

rises

pay

galized

stimulated

further

sound

process is
commercial

but has been le¬
dispose of the huge

Federal debt at

relatively low and

artificial interest rates in
to

hold down

charges

the

all

thereby

reduces

the

effort

interest

the national debt. This

inflates

power

annual

process

fixed

all

prices

and

purchasing

investments,

shifting part of the interest burden
their

and

owners,

indirectly

confiscating their property or sub¬
a hidden tax to which

jecting it to
other

forms

liable.
and

property

not

are

is, in effect, a cowardly
dishonest or un¬

essentially

ethical form of taxation upon peo¬

ple who

year

banking policy,

can

least afford it.

by in¬
creased expansion of economic ac¬

stated, Federal debt, created
by Federal budget deficits, mone¬

tivities under the impact of these

tized

tax reductions.

sharp

reduction

•

the

primary

defense of

in the

manner

cause

continuing

described, is
26 years

our

inflation.

private

Federal

expenditures,

expenditures

increased

the

could

field

than $280 billion

space

today.

Consequently,
this

continuous

order

inflation

halt

since

exploration and foreign aid • to 1933, it is essential that the public
under-developed nations. After the insist upon balanced budgets—at
readjustment period,

our

huge

na¬

tional debt, now dangerously high
at more than $280 billion (com-

jjared to only $46 billion in 1939),
could be reduced to
to

assure

for

room

normal level

expansion

future emergencies without
fiscation

peace.

Unless this

is done in the decade of the

1960's,
we will eventually seethe so-called
"creeping" inflation converted into
the

"galloping" type that totally
in destroys currencies and all fixed

con¬

property, directly

least, in time of

investments
in

payable therein
Germany in 1923-40.

—as

—to

The Wage-Price

Inflation

the

threat—except

Golden

Decade

Spiral and
Corporate Profits

war

the

Another

1960's is continuation of the vicious

all-time

inflation from which

wholesale

have suf¬

factor

peaks

prices

our

continuous

This

wag e-p

rice

(that now has operated for
since the end of World
War II) has raised U, S. products
to levels which are rapidly pricing

spiral
14

years

industry after industry and prod¬
uct
after
product not only out
of foreign markets, but out of our
own
domestic markets, as nation
nation

after

products in

undersells

foreign markets, and

floods the U. S. market with their

produced by labor
are
sharply lower

merchandise,
whose

wages

than ours, in

spite of longer hours

of work abroad.

Interest
Prior

Rates

the

and

Savings

depression

the

1930's, interest rates in the United
States

established

were

free

markets—according to the laws of

supply

demand.

and

1953, interest rates were
arbitrarily held below their true
levels by the joint actions of the
U. S. Treasury and the Federal
Reserve Board, though the latter
is
an
agency
of Congress,
in¬
dependent of the Treasury.'
Prior

interest

1933

rates

5, 6, 7, and even 8% on industrial
bonds had been

common through¬
history—with government
obligations enjoying lower rates
because of their (so-called) lower

out

our

risks.

Between

1933

prevailing rates

and

were

1955,
to 60%

artificial controls
and the huge money supply. Since
1955 they have risen again close
to their historic (normal) levels,
as
the demand for funds
(both
from

due

governments

increased

industry)

and

sharply.

Bonds

the

vs.

them

hold

market levels
and

greatly

interest

fates,

their

true

discourages savings

debt, es¬
pecially when it will most likely
be paid off in cheaper and cheaper
dollars.
It
also encourages debt
financing for expansion by cor¬
porations rather than financing
by sales of stocks. Debt financing
by corporations is further stimu¬
lated
by
the
high
corporate
income

encourages

tax

(of 52%)
with all
interest charges on bonds or debt
made tax-deductible

dividends

by law, while

stocks

fact,

becomes

are

tax

not

rate

effective

rate

only 2.88% after tax deduction.

These

and

so-called

1934, with the devalua^ wage-price spiral which has been
gold dollar. Our con¬ operating in this country since
price "'index is now at its 1945—financed by the huge in¬

factors, to a major degree,
explain the present shortage of
common

stocks

and

unprecedented

their current

price

levels.

fered since

1956

tion

by security issues of corporations

sumer

the

all-time historic high—110% above

1939,
♦

also

while
at

our

its

wholesale

all-time

index

peak)

has

price

increases

have,

power of

vestments—bonds,

all fixed in¬

mortgages,

spiral

would

not

At the

Between

clusive)

the

1946

and

average

1957
wage

(in¬
rate

(including fringe benefits) in man¬
in ufacturing In the United States has

the

raised

stock.

interest rates

longer safe investments

nation

which

reduction

power

common

of its

had

the

values of bonds

tion

long
hangs

heavier

and

discounts from par—in addition to
high interest rates.

below

Return

the

Gold

Standard

when the nation
was
on
the gold standard, with
full convertibility into gold of all
money,
and with all long-term
bonds and other fixed obligations
(such as mortgages, leases, etc.)
protected
the
gold
clause,
by
which provided for payment of
these claims in gold dollars (of
the

kind

ceived

from

the

lender)

bonds

truly safe investments

were

money-

totally worthless, as a
of inflation.

consequence

Consequently,
simple

the
quick
and
reinstate
bonds

way

(and similar obligations)
historical

and

proper

permitted

wage-price spiral since 1946—
not
only reduced foreign
markets for our exports
(which
must compete with foreign mer¬
chandise
produced ' by
workers
enjoying . sharply ' lower
wage
have

that could not be eroded in value
become

words, our high prices
exports—due chiefly to

our

rates, while1 working longer
hours),- but have encouraged a;
rising flood" of "imports • into our

their. domestic- market—on

or,

equivalent

$13.0

the

debtor re¬

paper

in their
in

status

the

In other

for

period

same

rose

high)

above their 1957 level.

past, at east from 1878 to

1933—a

exports

while our imports
billion—slightly

1957,

been

have

In the

low

(from

period, our imports rose 100%.
Moreover, in the first half of 1959
our
exports (on an annual basis)
have been only $14.3 billion—30%

the time may not be far off when
it will be impossible to sell bonds

—except

while

However,
73%

bond markets,

over our

high of $7.9 billion in

1958.

process.

this threat of infla¬

and

1950

before their

maturity by the inflation

period averaged $4.9 billion
a
low of $1.4 billion in

same

—with

the

growing

high

$13.0 billion in 1957. Our excess
exports over imports in the

inflation

destruction

low of $6.6

and

1949

billion

should—at

decade

of-4 total

Thursday, November 26, 1959

$10.8 billion—with

average

financing
of
both
public
and
private debts and reduce interest

increas¬

ing scale year by year. This trend
has

been

accentuated

our

Reciprocal

Trade

Program

under

which

-have

reduced

tariffs

three times since 1947. In

fact, our
tariffs have already been reduced
an

of (about) 80% since
(when this Program began)

average

1934

—without
tion

a corresponding reduc¬
foreign tariffs on U. S.

products or in gross discrimina¬
thereon is to return to the tions
through
quotas
and
ex¬
(internal)
gold
standard
and change controls over U. S. exports.
again legalize the gold clause in
Military and Foreign Aid
contracts
(which was outlawed
Payments
both for existing and future con¬
tracts by Congress in
In this same period the U, S.
1933).
It
rates

would also be necessary to assure
the public that the reinstated gold

Government

(and

loans)

clause

than

$60.0

would

validated

not

again

in¬

least, not by a
majority- vote
of
both
Congress and approval

simple
houses

—

by the President.
In

considered judgment, the

inflation

wave

overhung
world
be

the

since

which

entire
is

1930

has

western

not

likely to

finally ended until the major

nations of the world return to the

nations.

lions

(or

Meanwhile,
until
prices are likely to

then,

stock

has

made

the

billion

dollars

foreign
additional bil¬

Likewise,

spent)

grants
of

sum

have

been

sent

abroad

by Americans
traveling in foreign countries, or
for' investment abroad.
In
addition,
we
have
been
spending about $3.0 billion an¬
nually to support our troops and

maintain

our

■,

soil.-

'• V*

gold standard.

A';.

;•

bases

foreign

-.V

Consequently, as,
declined, while

exports

our

have

imports

our

continue

have

relatively high ratios
price to earnings — because
their capital gains potential as

of
of

expenditures of billions of dollars

sell

offset

inflation—while

regardless

interest

likely to become

bonds,

rates,
and

are

this

threat

total

annually

could

erosion

Growing

Threat

only

have

large

industries—with

end

rates—along

the

but

wage-price

return

immediately
a

longer

these

to the gold

and

term

at least
compliance to

tempt to

than

without

at¬

the

gold

standard.
The

maintenance

the

internal

gold

converti¬

bility (on demand) of all

currency

—requires:

(1) That
25%

(of

tained
able

minimum

reserve

gold bullion—a

ratio

view

for
18

reason¬

the

banks

main¬

money)

requirements
reserves

legal

20%

cash

against

their deposits.

(2) Balanced governmental
budgets—to avoid monetization of

debt, and
(3) A balance
the

nation's

surplus)

(or

pay¬

Unless
exists

balance

(or

international

of the country,
be delivered to

(September) 1949

Threat

the

exports

decade,

monetary gold stock of the west¬
had

world. In (September) 1959 it
been reduced
to only $19.5

billion—a loss of 21%.
The ratio of our gold

non-gold

deposits

(August)
1959
was
only 7.0%—compared to an aver¬
age of 8.6%
(with a low of* 6.7
and
a
high of 10.9%>) between
1915
and
1932
(before we sus¬
pended convertibility of the dol¬
lar into gold in the United States).

This

ratio

low of $10.3
high of $20.8

period,

our

fallen from

Feb.

10.4%

Sept. 30, 1959,
lion

our

been

19,

and

1958,

total of $3.3 bil¬

Treasury

withdrawn

gold stock
by foreign

ounce.

$15.7 billion—with
1957.

has

1953.

holdings

1949-58,
our
averaged

billion

bank

per

of merchandise

by 52 % in 20

stock

and

money

lar

Imports

Treas¬

accounts

billion in 1950 and

our

was $24.7 billion
60% ' of
the
total

tha«n

the

• same

imports averaged only

into

gold

The

withdrawn

shipped

abroad,

marked"
The

losing

accounts that converted their dol¬

settle all negative
'

been

surplus)

gold bullion must

accounts.

other

ury's gold stock
—more

has

ments.

have

Between

international

exist¬

industries

our

segments ;

months

our

the very

some

gold to foreign nations.

ern

standard—with

Our

to
/

resulting heavy
unemployment—but over the past

assure

conditions

01*

increasing-im¬

ports. threatened
and

—

now

International

Gold Stock

markets
an

are.

interest

balance of

ence

for

other

our

unfavorable

(temporarily) by political pledges
for
balanced
budgets and free
with

Paymounts.

eliminated

face

abroad,

negative

Not

fear

threatened with

eliminated.
This

risen

suspect and difficult to sell—until

purchasing

the

money

the

mortgage.

early date—generate

fear

time, bonds—even

same

with

those
—are

stated earlier, already reduced the

purchasing

wage-price

money

in the United States: was obtained

through s>ales of

supply,

the

have been possible.

risen 140% since 1939.

These

in our money supply. With¬
out that increase in
money
crease

only 27% of all

of
or

standard would eliminate this fear

Stocks

below

bond

continuation

spiral

Manipulation of
to

into

life

the

—

The

1933

From

through

present

consumer

greater

productivity

bonds

the

(or

they have been in past
periods of our history, to reduce
prices to the public, as a potential
off-set to "creeping" inflation.
used,

deductible.

indirectly.
The greatest

all

annual

fact,
appropriations will have substan¬ since 1933 our Federal budget has
been
balanced
tial repercussions on our defense
only in four years—
industries and, for some time, un¬ in 1947 and again in 1956 and 1957
the
Federal
til readjustments can be made by /—with
debt
rising
these
defense
industries
to
in¬ from $22.5 billion in 1933 to more
creased

of)

lower,

Unbalanced Budget

normal rate of 2 to 3%

This

money.

contrary

labor

gains, not- only hav& corporate
profits (as measured above) de¬
clined, but, more important, the
productivity gains have not been

supply

money

can, however — by stupid
shortsighted political deci¬

pressure

has

1939

and

both at home

and' abroad and put an end to in¬

since

services

and

less than 70%.

part

years

industrial

gold
but

held

was

was;

for

$35.00

gold

addition

(which

to
now

billion)

held

foreign

institutions

this

not

"ear¬

foreign
count and no longer carried in
Treasury gold stock.
as

ac¬

our

"earmarked"

totals
$9.0
country by
and

govern¬

ments, these foreign agencies now

Volume

hold

The Commercial and Financial Chronicle

Number 5902

190

claims

short-term

dollars

(that
in

the

^gold
only

they

$8.0

convert

claims,
would

stock

below

billion.

pf $11.7

sum

Should
short-term

billion

the

these
present

of Payments

reduced

substantially
required

—

legal

support

our

Continued from page

reserve

currency-deposit

our

attempt

made

were

fuse

to convert

;

Such

its

so—for

confidence

authority

has

.result

dollar

•

rencies.

year,

terms

and the gold
substantially.

dollar

since

last

outflow

has

While Americans have
ative

would, in effect, be the
equivalent' of
a
refusal
by,.a

to the

use

•.

commercial

bank

its

allow

attempt

to convert their shortclaims into gold,"'provided-'

term

fiscal policies
enforced.
In
situation with respect to

our

monetary

are.

sound

fact,

our

and

are

these short-term foreign claims to

gold stock is exactly the same

our

commercial banks in respect to

their

legally
required to maintain a reserve in
cash of only (about) 20% of their
total deposits.
Nbne of them is
likely (unless they are insolvent)

•

deposits.

called

their

They

are

all

convert

deposits into cash at once.

However, this potential threat
our
gold stock means, in a

real sense, that we are at the
mercy
of our foreign creditors,

very

unless

maintain

three

the

requirements of the gold standard:

the

(1)
and

legal
gold
balanced
budgets;

necessary

(2)

reserve;

(3)

balance (or surplus) in
international
pay¬

(total)

our

ments accounts.

Therefore,

/that
=>

should

clear

safest policy is to return

our

to, the full-fledged
■f—with

gold standard

convertibility

of dollars
into
gold
on
demand
of
any
holder, whether domestic or for¬
eign. We have ample gold to do
so

now.

firmly
of

By doing so now, we will
re-establish the integrity
dollar

our

foreigners

will

withdraw

gold)

(and

assure

that

not

convert

and

by accepting the
gold standard's rigid disciplines—
.which we (for political reasons)
not otherwise do—until it is

may.

late.

too

should continue with

balanced

budgets

international

un¬

unbalanced

payments,

certain to have

are

run on our gold
then, most likely, take
"easy" way out of further
a

will

and

the

devaluation

would,

the

another

period

constant

further

dollar.

This

merely

course,

mean

inflation

and

gold;

apparently it is feared that if fur¬
heavy inroads are made upon
the free gold, the United States
will be compelled to stop making
gold available for international

ther

settlement and thus devalue, even

—

altern¬

though most

of dollars in set¬

might still

tling their accounts within the
country, the United States cannot
depositors to withdraw*/their de-" compel foreign central banks to
accept our currency in settling a
posits on demand/^ '*»
V^
/
HbWever;? it*iS'iibt at all likely deficit on ' international. account;
/.that these foreign agencies will the medium thtough which final
•

concern

some

our

much smaller amount of free

•;

gold losses are
measured
not
against the total
gold stock but against the very

Indeed,

Adequacy of the Gold Stock

decline of the
of: foreign cur¬

sharp

visibly

led

abroad, where

interna¬

-tlie

abroad

improved

eased

would

however,

refusal,

such- in

tional trade and finance.

for foreign account is
"permissive"' and not mandatory.
a

function

/convert these short-term claims,
the Treasury probably could re¬

However,,the situation has

nonetheless

by the dollar in the early postwar
period has diminished, but it is
still a key currency and continues

money.

centers.

home.

25%

A Case

for

our

gold

reserve

intact.
Remedial Action

enactment

Since

gold

certificate

40%

of¬

Federal Reserve

the

credit policy

in the
In this
task, the present reserve require¬
ment will be of no assistance, but
appropriate
United

States

all

this

grips with our balance of
payments problems, a strengthen¬
ing of the free gold reserve Is
merely a preliminary technical

thus the existing require¬
ment actually has never been a
restraint
upon
Federal Reserve
policy. In the future, as in the
past, we shall have to depend
upon the integrity and good judg¬
ficials to establish

implication

re¬

level;

ment

The

money'

should

fact

the

below

declined

international

other

the

reserve

ratio has

the

quirement,
never

': tries.

international

not,

exchange, it would
practical matter, affect
banking and credit conditions at

Facing the Di

be converted into gold)

can

(2219)

conditions

economy.

it may well prove an unnecessary
hindrance and complication.

—

Finally, of course, removal or
meeting the broad complex of reduction of the 25% gold certi¬
the balance of payments problem
ficate reserve requirement would
therefore, it may be wise to alle¬ have no effect upon the reserve ;
v viate
these anxieties by reducing,
position of the commercial bank¬
or
even
eliminating, the present ing system. The reserve require¬
settlement' is effected among na25%
gold
reserve
requirement ments of the commercial banks
tfdrl&' contlniidk to be 'gold, or a
against Federal Reserve note and are
entirely separate from, and
currency convertible into gold.
It deposit liabilities. This
require¬ unrelated to, the gold reserve re¬
is conceivable that at some time ment is a holdover
from the days
quirement of the Federal Reserve
in the future, some other unit of
prior to 1933, when gold circu¬ Banks.
Consequently, the reduc¬
value will gain universal accept¬ lated
freely in our monetary sys¬ tion or removal
of
the
latter
ability in settling international ac¬ tem and
money was convertible would have neither an inflation¬
counts, but today and doubtless into gold coin on request.
ary nor a deflationary effect upon
for many years to come, gold re¬
A reduction in the reserve re¬ the credit system.
tains its age-old functions.
Con¬
quirement would not be a radical
Holding Gold or Holding Dol¬
sequently, unless the dollar is to
step; a change was effected in lars
The action here proposed
sell at a substantial discount in
1945, when Congress enacted a
would, of course, allay merely
world markets, the Treasury must
uniform 25% ratio in place of the
one of the many anxieties affect¬
stand ready to supply gold to for¬
earlier provision which called for
ing
our
balance
of
payments
eign central banks on demand, and a
40%
gold
certificate reserve
problem. As long as we incur a
foreign holders must have confi¬
against Federal Reserve notes and net deficit in our international
dence that gold will be available
35% against deposit liabilities. In
transactions, foreigners are
ac¬
upon request.
addition, the Federal Reserve al¬
quiring additional dollars which
Despite a decline of $31/4 billion ready has the power to suspend
they may use in various ways,
since early 1958, the United States the
existing requirement for lim¬
including ways which may pose
gold reserve is still about $19V2 ited periods. Congressional action
continuing pressure on our gold
billion; our holdings still comprise toward further easing or com¬
reserve.
almost one-half the monetary gold plete elimination of this require¬
Foreign
businesses
or
banks
stock of the entire non-Commu¬ ment would
represent no more
may elect to leave all or part of
nist world. A more balanced dis¬
than adapting our currency laws
the dolars in the United States in
tribution of gold among the free to the conditions of the
present the form of deposits or holdings
nations has been a consistent ob¬
day.
of short-term obligations or other
jective of our international eco¬
Effects Abroad
The results of securities. If these foreign holders
nomic policy, essential to the re¬
such action would be to increase wish to
withdraw their dollars
building of sound currencies the amount of
gold potentially from the United States, they sell
abroad.
Even
so,
however, our available
to support the dollar in
them to their central bank.
In
gold stock is far greater than that international
exchange.
Should turn, when foreign central banks
of any other nation.
The other the
present 25% requirement be acquire dollars,* they may leave
largest holders of gold in the free cut in
half, the amount of free part on deposit for use as work¬
world
are
the United
Kingdom
gold available for purposes of in¬ ing balances; they may invest the
(with perhaps $3 billion of gold)
ternational
settlement would be proceeds, normally in short-term
and West Germany (with about
raised to some $13 V2 billion, and
dollar
obligations; or they may
$2% billion); in fact, the gold re¬ the ratio of such
gold to foreign purchase gold.
serves of all
Western Europe ap¬
short-term liabilties would be in¬
Under ordinary conditions, for¬
parently total no more than $12- creased to above
70%.
If
the eign holders have a fairly strong
13 billion.
United States were to eliminate incentive to leave a substantial
Thus, even if the United States altogether a formal reserve re¬ part of their receipts of dollars
should continue to lose gold at
quirement for the central bank, on deposit in the United States
the rapid pace of 1958, the size
as most other leading nations have
or
invest them in short-term se¬
of the United States gold reserve
done, the monetary gold stock curities,
rather
than withdraw
appears as an adequate bulwark
would cover these foreign liabili¬ them in gold.
The United States
for a long time ahead. Indeed, the
ties by about 100%.
It should be is a major banker for the free
present gold reserve exceeds the note that, in Europe, only Belgium world, and a number of foreign
$16 billion of short-term dollar and
Switzerland
require
their central banks hold part of their
balances held by foreigners and
central banks to hold significant reserves in dollars.
Also, central
the additional $3 billion held by
gold reserves against their domes- banks, governments, commercial
the World Bank, the International
tic liabilities.
banks and business concerns gen¬
Monetary Fund, and other inter¬
hold
substantial
dollar
Assuredly, the timing of such a erally
national institutions.
change will require some care. amounts as working balances for
The
"Free" Gold
Problem
Should
affecting commercial and finan¬
consideration of
such
a
Despite the huge size of our total step be delayed until a time of cial transactions not only with the
States
but
with
other
gold reserve, fears for the dollar unsettled exchange conditions, United
In

—

obvious.

are

come

a desirable and helpfiil
The basic objective must be

step, albeit
one.

reduce

the

deficit

net

international

reshaping some of

means

our

transactions.

This

our

posi¬

tions and policies with reference
to

foriegn trade, foreign invest¬
and
government
outlays
At the same time, we
need to develop and carry out ec<iment

abroad.

nomic

policies, which

the dollar

will

keep

attractive holding ih

the eyes of the world; that

is to

economic policies that wj|l
provide stability of purchasing
say,

and'

foreigners—

and reassure

power

citizens—against the

our own

inflationary threat.

The1 BaUn'de'-W-Pay trten ts

Deficit
Unfortunately, the deficit in t$e
United States balance of
is not

minor

paymerits

passing phenomenon. With
interruptions, our inter¬

national accounts have been run¬

against us for almost 10
In the past, however, a
goodly portion of the outflow df
investment capital and of outlays
stemming from government pro¬
grams was usually offset by a siz¬
able export surplus in our foreign

ning

years.

trade and hence did not lead to aid
undue strain
The

viated for
ary

problem
a

our

gold reservd.

further

was

alle¬

while by the tempor-f

boost given to our exports by
by the world¬

the Suez crisis and

wide investment boom.

Now, with reduced exports and
imports, the balance
of payments deficit has risen con¬
spicuously. Although merchandise
exports still exceed imports, the
gap
has
narrowed
perceptibly,
while government aid and United
States private investment abroad
have advanced in recent years. As
much larger

result, whereas the net balance
payments
deficit
averaged
around $2 billion a year in the
early and middle 1950's and al¬
most disappeared in 1957, it in¬
creased to almost $31/2 billion in
1958 and is likely to be in the $4
billion range in the current year;

in fact, it may be above $5
if our contribution to the

billion
Inter¬

Monetary Fund is in¬
If this deficit is to be

national
cluded.

appreciably, as it should
and effective en¬

narrowed

vigorous

be,

need

will

deavors

taken,

without delay.

Trade Competition —
important reason why the
is unlikely to mend of
itself is that the shift in our bal¬
Foreign

One

situation

•

year,

the

erosion, year by
of the purchasing power of

dollar;—

—

These

problems indicate clearly

the difficulties that lie ahead dur¬

ing the decade of the 1960's. They
clearly demonstrate the kind of
complicated

technical,
aqd, political
factors
determine

values

economic,
that
all

will

invest¬

ments in the next decade—factors

which the average
or

small)

investor (large
ill-prepared to deal

with.

Hirsch in Newark
NEWARK,

J.—Hirsch

members of the

New

York

Co.,

Stock

Exchange, have
announced
the
opening of an office at 11 Com¬
merce

ment

Street, under the
of

Christopher

Burton

are

Zega

Resnick

tives at the

and

manage¬

Doyle.

Thaddeus

registered representa¬
new

branch office.

fed in part at least by the fact
that, in contrast to most other
countries,
more
than
half
the
United States gold stock must be
held as reserve against domestic
liabilities.
Almost $12 billion of
gold is required to be held as a
25% reserve against approximate¬
ly $471/2 billion of Federal Re¬
serve note
and deposit liabilities,
even
though these are no longer
redeemable in gold.
This gold is
thereby barred from functioning
as
a
means
of settling interna¬
tional accounts
the remaining
essential function of gold in our
monetary system — and is not
available to support the conver¬

when

tibility

are

—

foreign

dollar balances.

holdings

This leaves

some

billion
of
"free"
gold,
40%
of our
comprising
about
short-term
dollar
liabilities
to
is foreigners and to international in¬
$71/2

Francis Co,

LOUISVILLE, Ky.—Francis Co
engaging in a securities business
from

offices

the

Kentucky

stitutions.

Rosen, Vice-President

General
.

Manager;
and
Greenebaum, Secretary.

and

S.
.

L.
■

ceivably be interpreted

perspective
lent

among

and

reserve

other

leading

preva¬

coun-

sign

were

tion, particularly if it were ac¬
companied by a full and frank
discussion

the

reasons

for

the

firm re¬
statement
of
the
government's
position with regard to the con¬
action

proposed

tinued

and

availability of gold

its

countries

well.

foreigners to hold dollars in pref¬
erence to withdrawing their funds

gold
cannot
be
taken
for
granted, but depends on a variety
of factors.
One consideration, of
in

course,

is confidence in the dollar;

that the dollar's
power
will
remain

that is, confidence

purchasing
stable

well

determination

confidence in the

and

tibility of the dollar into gold at
fixed price of $35 an ounce.
factor is the identity of

the

gold backing of foreign dollar
balances, we would be clearly

Another

demonstrating

central banks keep

maintain

the

dollar

change.

determination
convertibility of

the

This

international

provide

would

ex¬

effective rebuttal to the recurrent
rumors

of devaluation

current

fears

and

effects

our

move

tainty

Home

this

While

proposed

currency
source

—

concerning

the

change

uncer¬

dollar

reserves,

dollars; some
their monetary
of

excess

necessary

working balances, in gold; others
hold

part

their

reserves

securities

short-term
realize

interest

another important
the

laws would re¬

of needles

the country gaining

order

re¬

erhbargo

be placed on gold sales.

Effects

that

of the

abiilty

Treasury to maintain the conver¬

the

our

willingness

the

However,

present price. By raising, in effect,

comparison

coverage

proposal

the present, however, it is reason¬
able to expect a favorable reac¬

with the

If the

of weakness.

advanced under conditions such as

may

itself, this appears as a
Home Life Building. Officers are
thoroughly respectable and ade¬
C.
Webster 'Abbott, ;
President; quate coverage, both in historical
Harold

gold is leaving the country
large amounts, it, might con¬

the
than
can

tions

Yet

consideration is

attractiveness
can

return.

the

rates

be earned in the Ameri¬

market
and

other

Treasury

obliga¬

securities

com¬

pared with the yields obtainable

ance

mirrors funda¬
that have taken

of payments

mental

changes

place in the world economy in the
past decade* Unlike the situation
in the early postwar years, the
United States is no longer the

only important supplier of manu¬
markets. The
destruction of World War II has

factures to the world

been made

good. Industrial capac¬

ity in Western Europe, Japan and
elsewhere has increased.
Modern

plants are being put
throughout the globe, and
countries are aggressively
introducing improved mass pro*
duction techniques.
As a result,
foreign exporters are now able
successfully to compete for mar¬

and efficient
up

many

kets

abroad

aware,
as

and,

in the American

are

all

markets

well.

Foreign producers
nificant

cost

also have sig¬

advantages in their

frequently appear less
by
restrictive labor
practices than do their American
competitors. Even after allowing
for the higher costs of social bene¬
fit programs, both public and pri¬
vate, which prevail in many parts
of the world, hourly labor costs fn
practically all important indus¬
trial nations are significantly low¬
er than in t^""3 TTnited States,
in
Continued on page 28
favor, and
hampered

The Commercial and Financial Chronicle

(2220)

Facing the Discipline of
The Balance of Payments
.

Continued from

in-

American

whereas

addition,

page

enjoyed
the
advantage of abundant raw materials at low costs, we are now becoming
increasingly
dependent
previously

dustry

foreign sources.

upon
A

rnmnpfltive pressures

infn

markets

inwnrlH

"where

Fnrone

Market

crpems

'the reis

a cU

tL lar^er

fnr

v^l*-preparing

may
deFree Trade
would
join

bloc

velop out of the
Agreement,
which
Britain

Great

six

and

Eu-

other

countries, and would likewise
be
designed
to promote
broader trade
among
members,
Regardless of whether or not the
two groups join to form a huge
ropean

fed

both

competition,

keen

foreign markets and at home.

Reflecting these various developgoods add services (including
investment income but exclusive
of military expenditures abroad)
declined from an average oi $5%
of

a., year
an

estimated $31% billion

Included

1959,

th^ 1951:58

latter,

the

sizable exports of
surplusfarm commodities as part
ot the government
agricultural
disposal program; these are not
commercial exports and probably
moreover,

would

are

not

made

without

the

involved.
Furthermore
payments for exe
in
ports under this program are
m
foreign c
currencies which may be
subsidy

government

limited

for

used
used

henc
nence
hence

ana
and

easing

n?owlm°Ur
problem.

onlv

purposes

oi
of

a.e
are

littfe

help
xieip

uiue

in
m

paym

possible that

will

our

least

ease,

some

foreign

for

the

trade

the

time

being;
exports
seem
to
have
passed their low and may increase
•*

expanslon

•

activity

lor

-prices

Europe,

scime

the

basic

pr?dufers .by

business

higher

raw

mate-

rials, and the better balance ot
payments position of a immbei of
foieign countries. Also, the United
States Government is pressing lor
elimination of the remaining dis-

uaae

seem

to be meeting with a meas-

*7.®

The responsibility for achieving

however, rests

improvement,

business and
labor.
In essence, American industry needs to become more competitive in world markets, and this
upon

^^SS^SSSSS^
American p:
nr

tariif.

;mnnrx

qu°tas, °r l

tianf'but as jcte

rp«tric-

0™ntinnnl

paS,tnrk

situauons,tnis iuris

«honld

inoustrms, sucn as icxiiies, snou a
notme; maae me vicum oi guvw -

■» jimbt pay.

wage

our economy

rises

excess

for decades:
of

produc-

obstacles should be

attention

consumer

needs and

cieg

wbdcb

retard or, better
persjstent rise of
production
costs
which
is
so
largely responsible for our dlffi-

yeb

end

wjp

^be

Tnmicim.nii

Investment Prob-

,.The
blem

„rAll

whlle

our excess

chandise. exports
outflow

has

of mer_

dwindled,

investment

funds

years.

Al-

some assist

underdevel-

oped countries, some help build
the political and economic strength
of the free world in general. The
harsh realities of our times and

inconsistent.

wilh

these

by ^be pr0gress 0f the

European

common

American

Market,
Market

|bemsejveg

^ba^

lie

time,

area

^-be

seem

same

ahead.

foreign

equities

the

securities,

European

a result, net transfers
investment funds abroad have

billion

about

double

recently

1957

what

five

and

they

years

1958,

were

ago,

and

outflow of investment capital.
This

outflow

has

desirable aspects: it provides American

direct

many

ments

position. This is underlined

proposal, and it is gratifying that
efforts to this end seem to be
meeting with some favorable consideration. In addition, the United
our

investment,

more-

hmhpr

f>o<d

highei
cogt..
Beyond this,
.

;

seem

fbe

balance of payments by

funcls

larger share of

a
made

available

under

these programs be spent in the
United States. This will be criti-

international exchange.

the

difficulties

redressing the
selective
reduc-

situation, some
tions in the size
grant

and

loan

our

foreign

programs

seem

unavoidable.
These
reductions
can be moderated, however, if we

American

ernment an programs are assur-

Significantly, while

manufacturers

have

^a^ks. Unless capital ecmipment is
exported from the United States,

fnr

Policies
Tn

the

analysis.

final

Repayment of Foreign Debts
Finally,

some

of the strain

—

our

era

course.

role

restraining

inflationary

but also because of the
sensitivity of foreign balances to
conditions in an international fi¬
pressures

7o7"is~ toe" pVoblein "limited* 'to come solid citizens of the world's
transactions with other countries, fmanaal c om m u n 11 y, interest
Essentially, the condition of the fates in the United, states must be
balance of payments indicates the
degree to which the economy of

^tractive relative to others, else

nation is in harmony with the

0U1\ monetary reserves will come

realities of world markets
Consequently, coping with a deficit
in the
balance of payments is
neither easy nor popular, since it
requires dealing with root .causes.

stood

their

problems,
Throughout Western Europe and
other parts of the world, country
after

count-fry has taken effective

also to meet nsi^tai ana mone
problems.. InflatiOn^ may not

have

been

checked

completely,

Sold will leave the country and

nd*r

earlyUptVt°of llssTmply
am^

other

hand

the

higher

rates

the Dast 12 months have attracted

subjgantial
these
ket

foreign

funds

enter the

American

interest

states

funds

been

not

rates

would

had

willing

monev

the

mar-

United

presumably

have

advanced significantly above their
current levels.
Th

rppncfT147P

R«erJ*

the

t™

™<J<'ZSSJSiw'v!?
noseo
rn
th^
fiicniniinp

P°fed to^ the discipline of th«
the
balan9eu
payments and needs
to weigh the impact of its policies
movements

upon

ternatinnal

of funds in

particuiar>

in-

morPotc

mmpv

cannot

Trv

credit

ease

for the time being at least; output S?* hoI<T downTates againsTtoe
has been stepped up sharply, im- forces of the market place. If we
balances in international accounts as a nation demand easy credit
have been redressed, and gold and to finance expenditures which we
exchange reserves abroad have are relUctant to meet out of savbeen fortified considerably.
ings, we now run up squarely
-phis great improvement abroad
js

assuredly

all to the good.
It
the fulfillment of the

represents
aims of

international

our

policies

during

econom-

the

postwar

However, while other

era

trjes

have

^he

sooner

necessary

adjustments

coun-

later

made

and often painful
their economies

and

others

against the

which tells
what many
have

balance
in

payments,

obvious

experienced

terms

students

been

cautioning for years,
such practices contribute to the gradual cheapening
namely,

and

that

debasement

the

American

dollar.
The

Budget

sociated

The

balance

an' imDortan't

degree

faiied
our

own

keep

altogether, to adjust with large and recurring budget
economic policies so as deficits financed with
the help of
in step. Yet, since our short-term credit.
This
is
not

condition is

own

better

countries
lems

should

difficult

other

fiscal practices involve

prob-

postwar

able

period,

make

the

nee-

corrections with less hard-

essary

ship

measurably
most

that

the

still

which faced such

than

and

before

stress,

our

provided

situation

take steps to reduce the impact of rious deterioration.
_bese
on °yr balance oi
Costs and Prices

home market.

1rnnunaf: (ms

Implications tor Domestic

In view of the magnitude of the
adverse balance of payments and

postwar

ZbLT*"'

ettorts we nave been mak- spects been slow.
in

earlier

countries in Western Europe con- -both at home and abroad.
hnue to show lavoiable balances
Federal Reserve Policy—Credit
Payments, more can possibly policy likewise is of cardinal imbe accomplished along these lines. portance, not only because of its

{"g -0 achieYe reductions in trade
barriers and greater freedom

the

the seller's markets, and become

the Export-Import Bank. It other

confronted with two troublesome but it has been slowed materially.

an-

States can reduce off-shore pro- steps not only to improve its ca- 1 —* — m
^
curementJ and
substitute American
nacitv to produce and export but
products although probably at a also to meet its fiscal and mone-

the

over»

European countries have

some

from

n~t,irp

military and economic aid. In of economic maladjustments.
View of the great progress of these
Nevertheless, other countries, in
countries in recent years, this does much worse trouble than the
not seem to be an inequitable United States, have successfully

export of American edly not part of the regular flow
mctg
'J?ij ^
,
A
manaEfement and production
commerce, and it is notrestrictia
rWrJf
methods may hasten., industrial tionism if a larger proportion^of
ot
^ertive competi- growth elsewhere in the world. ?Vr ,„grai}^~11?"aid Jf, made irJ
®
i
^e'- erY;Dbasis Under certain conditions, foreign ^md
^baJ 1S.V in. f
rr.7
t
i3
C
n
investment may also broaden the Soods rather than in dollars. T e
iAIS!
neW
processes
and
market
for
American
goods.
Fiprinciple
would
apply
to
new products.
nally, but importantly, our foreign
s°ft loans
which are clearly
—Ijx addition, however, the
investments are now contributing ct
in maily resDee^
age American manufacturer will
close to $3 billion of annual in- Neither in the case of grants or
have to match his
foreign counter- come to the favorable side of the soft l°ans would such a policy
part in export-mindedness, that balance
of
payments,
and
the f.un counter to our general objecis, apply the same degree of alertamount is rising year by year.
]Yve °? aY°^dmS restrictive pracness, ingenuity and initiative in
In our present situation, how^ces m international trade and
promoting sales abroad as in the ever, there are also some draw- fmance.

or blocked
by the restrictive work practices inherited
from a bygone day. Labor leaders

considerably more aggressive in
holding prices down in order to

bilities to recognize that we need

i'^uirinf

responsi-

opportunities

petroleum.

furtber impetus is being provided

minimized

due

worid responsibilities obvious-

upon our

and

cently

& cannot be ignored, but it is not

avail

develop natabroad, especially

pressures to

res0llrces

mjnerais

ac-

o/some

common

ural

day, many potential benefits of
technological progress are being

Assuredly, the in

™d the prepayment
$250 million of obligations

—S

companies acquire facilities in the

tinuing

eign governments.

the volume of spending under our
foreign programs; here it will be
argued that our international obligations make unwise any substantial cutbacks and that reductjons would raise problems for
the recipient countries. The sec?nd alternative is to reduce the
imPact °f 0U1' foreign programs

extraordinarily
high ievel, there are strong conan

the

ex-

more than $18
billion
of credits and claims against for-

Reappraising Government Pro-

though'direct in vestment "declined alternatives. The first is to reduce
lagt year from

of foreign lending activities
tending
over
many
years,

jong ag tbe united States is con- bulk of these claims is of long already drawn the obvious confronted with a large balance of maturity, and large amounts are elusion; they have displayed inpayments problem, it would be due from countries that are ex- creased readiness to adapt their
inopportune to provide tax relief periencing balance of payments policies to the requirements and
and simiiar incentives designed to problems of their own. However, the opportunities of the present
stimulate an even greater outflow about $10 billion of such claims age. In the United States," howof funds except on a selective are held
against
countries
in ever, general acceptance of this
bagis in tbose jnstances where Western Europe, most of which principle still has considerable
priVate capital investment will are enjoying a favorable balance distance to go.
Our
business
lessen the need for Government of payments situation, and of this leaders, in turn, may have to reaid<
■ ■
total about $900 million is of a vise pricing policies carried over

by the fact that outlays for militernational
trade
would
under- *ary expenditures, foreign loans
minp the government's current efalld grants have in recent years
for+q
+0
«a[n
wider
access
for been rui}njnS at the annual rate
American goods in foreign marbillion, some 50% higher
ket
doubtless encourage retail- that five years earlier.
at
measures abroad, and raise
One approach is to induce other
priceg to the American consumer, countries, especially those ol
The only constructive alternative Western Europe, to shoulder a
is to compete in terms of greater greater portion of the burden of

case

iHvni^

new

Thursday, November 26, 1959

payments could be productivity and toward passing
greater repayments of on some of the productivity gains
have made. As a result in the form of lower prices. To-

cumulated

in-

want%
technological
leadership,
ancj qUality of output, and at the
same time develop economic poli-

loans

United States Government has

.-our

f^* vFff

eased

tainly

abroad

p.pr®'er'

although a lower total is estimated
for 1959, it is difficult to foresee
any important slackening in the
means facing up to the two major
forces
making for a continued
cost-raising forces that have large
and
generally
increasing

plagued

addition, frequently the
of the newly built plant
competes
directly
with

balance

goods manufactured at home. Cer-

Some

fluctuated around the annual rate

material and lasting

abroad

and sales promotion cannot be dis-

pneidi, a.iu u.™ errors vestors. As

success.

output

reductions

matters o£ styling, cost

especially

ure

has increased in recent

pressures

•

As a

■

ments, our net surplus on account

period to

months and while some ot tnis increase was due
^*CV, spec*J\
facJ0Yf as higher food shipments
an^ the buying of steel as a strike
hedfe> ll is evident that foreign

Improving the Trade Balance—

billion

businessmen abroad have vigorously pushed their sales to tne
United States. Imports have vir*uaY soared in the past u,

coml mlssed-

ments.

often been less than aggressive piaced jn tbe patb 0f internam developing foreign markets, tional investment activity, but as

Trtde
j.iauc gamed considerable ground in our
markets, and their initiative in

markets

^geional

Another

ahead

vigor
vigoi.

the six members

barriers among
d us try

Common

the

be forging

wft^
unex^cted
with
unexpectea

particularly

rnnnomip rejrionilism

rise

the

direct foreign investment adds to
the deficit in the balance of pay-

sistent

uptrend

suffers

act

country's

the

all

costs

explain,
resources,

since
a

loose

drain

upward
pressures on costs and prices, and
thus reduce the attractiveness of

se-

the currency to foreign holders

the

consistently

and

prices of American manufactured
products. This trend, under way

expand the

money supply, impede the task of
credit
control, add
to

In
—

the

United

States

have

been'lax

about

credit, in times of economic recession, and have been content to
attain no better than a substan¬

for 20 years of war and peace, has tially balanced budget in periods
already eaten far into the'pur- of business recovery. This is not
chasing power of the
dollar at enough.
When business is good
home and is now becoming
a and private
credit demands are
threat

auy<

<phe

the

dollar

need

stant advance in

internation-

halt

vvage

the

rates

con-

and

running high, it is essential
we accumulate substantial

surpluses

out

which

that

budget
retire

Produetion costs

should be obvi- some Treasury debt,
oniy to management but
Our unhaonv fiscal record canaiso to labor; a steady worsening not be adequately explained bv
0f our competitive position in referring to defense needs- the
world markets inevitably means rise in Federal spending in recent
ous

not

lower sales and fewer jobs.

years has

Emphasis must perforce be directed

toward

achieving

greater

the

been almost entirely

nondefense

category.

again, the moral is plain;

Here

we can-

Volume

190

not

nation make

IIIW*' N liWrfOJ "MffiM 1

IMLWBmiWlrttWffft

demands

Number 5902'.'.

for

government price
assistance and services

supports,

of all kinds without

someday en¬
countering the discipline of the
balance of payments, and the day
to

•^.^Mf,',

^ $r|j;

'.rffr

," ', ,fj

seems

this

extreme

abroad.

Treasury Debt Management —
Debt management, too, ranks high
the factors that determine

the

stop

whenever

gether

business

the

with

gress

turns

down¬

raise

operations,

refusal

the

to¬

Con¬

interest

rate

ceiling

on Treasury bonds, have
provided added support to

all

those

budget

can

who

stress

the

existence

the

inflationary bias in the Ameri¬
economy which is leading us
into ever deeper difficulty in our

inability of the Treasury to

de¬

balance of payments.

pounded

velop

recent

steady

obligations,

been

years

com¬

market for its
savings insti¬

among

tutions and other investors.

result,
the
Treasury has been
compelled to do its refinancing,
well

its cash financing, over¬

whelmingly through short and, at
best, intermediate maturities; the
Treasury now finds itself with a
rapidly rising floating debt which
enhances the volume of liquid as¬
sets and hence
the inflationary

poteirfeial

the

American

econ¬

omy.

disturbing

development

has not escaped the notice of for¬

eign observers, especially since it
compares
unfavorably with 'the
record of many Western European
governments,
market

which

able

are

their

obligations among
long-term investors and are thus
better able to finance deficits out
of

private

saving^.,

management

the

difficulties

debt
the

United States Treasury are to be
eased, two steps are essential and
both

are

the

area

sional action/

These expressions of skepticism

contain

truths

Congres¬

too

economic

ance

also

lively

progressive shortening
through the passage

debt

of time; in

1960, for example, al¬
most
$20 billion
of outstanding
Treasury
obligations will
drop
into the one-year category.
In
addition, by practicing strict econ¬
omies, Congress muse permit the
Treasury to achieve, in a period
of active business, an
adequate
budget surplus out of which to
of its debt.

characterize the

Some may

latter

un¬

expectation, yet this too

requirement; imposed by the

discipline of the balance of
ments

pay¬

and

any shortcomings
in
thfs area will merely intensify our
problems elsewhere.

An Exercise in

Statemanship

:: Perhaps
the most painful ad¬
justment required of us today is
to recognize that we are no longer

free,

for

long in the
postwar period, to make our own
rules and shape our domestic poli¬
cies independently of
economic
developments abroad and inde¬
as we were

pendently

the

effects

ahead.

United

its

gained their economic and finan¬

strength,

are

again

once

only one among a group of na¬
tions, each subject to the discipline
of

the

each

balance

required

correct

mitted to

payments, and

sooner

that

have

which

are

.these

per¬

economy.
we

requirements

basic not merely to our

responsibilities to the
the free world

A Bipartisan

edly,
to

the

hear

are
our

-economy

whole.

doubts

readiness

American

overvalued

abroad
the

dollar

currency

valued.

relation

currencies and that
our

the

that

determine

economic

reactions abroad it not likely

widely

readily

appreciated

for

accepted.

political

Nevertheless,

contro¬

versy and procrastination on these
issues
would
be
hazardous
not

United

already
to

sooner or

other
later

will have to be de¬

Many

who

not

infftwUM

*■

awwifimMMti

►

i'V

-U

U»w

•**#

«r%'41

1(1

Cautious Attitude Adopted by

dollar,

Purchasing agents show how dependent the economy i9 on domestic

Congressional commit¬

era!

bodies, inside and
outside government, have in the
of

this

needs

individual

involved
be

give

According

achieve

broader

only to the nation, in general but
also, and specifically, to both polit¬
parties.
The next Adminis¬
tration, regardless of its political

results

ity

face

balance

problem fully
ward, and

payments

difficult,

It would

different

•■many

places.

However,

we cannot

and

will

that

need

will

uncomfortable

The evidence says that

problems will

not

the consequences

and

Corp.

action

reduce

Aetna

and

ous

cents), at $3
net

point

and

either

ponents

and

there

agreement—that
defended

lie

the

and

l>e

must

dollar

strengthened.

solid currency is a cardinal

prerequisite

plastic

sheets,

cementable

used

purposes.

rods,

Labor Party in unmistakable
language expressed its determina¬

tion to defend sterling.

A similar

statement, supported by a willing¬
ness
to back the-pronouncement
with appropriate action, would be
equally constructive in the United

com¬

pressure

sensitive,
plain
tapes,
in

the

policy

balance of payments and the

tion of the dollar

posi¬

less than

bipartisan policy in inter¬
national political affairs.
a

Taking

the

problem of

velop such

strike

for

created short supply items.
Employment to date has
remarkably well. However, many believe we are just
threshold of a rash of shortened week works, layoffs and

the

shutdowns.
"A

Initiative

—

bipartisan approach.

May 29, 1956.

if there will

stocks

Proprietor

any

general move to increase inventories
66
reported they would

inventories at their present level, 19%reductions, and only 15% plan to add to then-

hand.

strike created 'short supply' items.
"This
and

month, 30%- tell of increases, 68% report no change,
fortunate enough to be paying less. Over-all, there
to be almost a united front in the fight against inflation,
resultant determination to resist price increases.

seems

and

are

Inventories

bulk of the

purchased,materials inventories of American industry.
replenishment of these items, we would expect inventory
to be low—and they are. October figures show the lowest
for 1959.
While 43% report no change from September..

balances

sole

concern

proprietor of Dietenhofer and

Southwest

Broad

products made from steel constitute a substantial

"Steel and

42%

670

commodity prices continue to inch upward—but
the amount is small and largely results from premium prices on

SOUTHERN PINES, N. C.—
Herbert
J.
Dietenhofer is
now

Heartfield,

not

"Industrial

balances

their

say

inventories
basic

steel is the

that
want

subject

and

its

various

MIAMI

buyers 'would not
to add substantially to their inventories of other than steel
situation, most

BEACH, Fla.

—

William

our

balance of

large

payment^ prob-

are

the

prospects?

be the consequences

balance

payments

deficit continues? How have other

countries coped
lems?

spite of

month, it is still a long way from the 57% in this category
during the low employment period of 1958. Again in October, 18%
they have more people employed than in the previous month.

last

say

Graham King Branch

125

under

Southeast

the

Third

Buying Policy

Ar¬

Now

Proprietor

FRANCISCO, Calif.—Henry
McMicking is now sole pro¬

-Per Cent
4

■■«.

Mouth

Production materials./.-

1505

the

What

are

the

between

Supplies

Capital

Expenditures.

CRUZ,

Investment
open

nut

Calif.

—

Services,

have

branch office at 129 Wal¬

Street under the

William

direction

(JO Days

MRO

Supplies

"There
month.
tion

—

Expenditures.

are

many

8.,
4

that

steel items on the critical list this
situation, has so monopolized our atten¬

price increases in other items are slipping by
concern

steel scrap, zinc, corrugated

equipment and phthalic anhydride./
"On the down side are: Turbine

GORDONSVILLE, Va.—C. F. Cas¬
branch

in¬

under -the

the

Rock.

Inc.

119

has

North

opened

Main

Street

Frank

management

too scattered
"In

short

electrical

generators and some localized

price breaks due to special circumstances are reported,
are

without

might otherwise show.

"On the up side are: Copper, lead,

C. F. Cassell Branch
Co.,

The general steel

the usual

Foster.

Yr,

cartons, kraft paper, linseed oil, natural rubber, some

sell

to 1

Days

Specific Commodity Changes

EBSCO

Inc.

Production Materials—

EBSCO Inv. Branch
SANTA

ReportIng(J Mos.

30 Days

September—

West Texas

management of

Capital

Why has the United States

terrelationships

MRO

Louis M. Stuart.

dollar been "weak" in

circumstances?

under

Hand to

October-

All States Branch

branch office at

•

very

1Q0.

DENISON, Tex.—All States Man¬
agement Company has opened a

...

cautious attitude being displayed by buyers.
Few are willing to extend commitments too far for fear of over-inventorying in the event of a letdown resulting from the steei
strike." On the other hand, they do not want to be caught shori
if the promised boom of 1960 materializes earlier than expected.
"There is

SAN
A.

However, many believe we are right at the brink of a decline.
They expect a rash of reduced work week hours, layoffs, and
shutdowns in the immediate period ahead. .This leads to much
concern about the
effect on holiday retail sales.

Avenue

management Of S.

thur Verenis.

with these prob¬

foreign ex¬
change markets and how can it be
strengthened?
What specific
changes in foreign economic
policy are required under present

the decline in gross national product figures,
employment, surprisingly, continues to hold at good levels. While
this month's 24% who report less employment is up 5% from
"In

Opens

Horrmann is conducting a securi¬
ties business from offices at 1134
Lincoln Road.

need to explore some troublesome
questions. 'What are the reasons

for

While there is some real

for this.

steel

Employment

Wm. Horrmann

Street

Our present situation is unique
American experience, and we

most emphasize

By far,

lower.

are

reason

critical

the

over

items at this time.

Street.

interrelated aspects.

question / this

special

Our

down.

by the President and the leaders

the

hold purchased

will effect further

With

Possibly this could; be achieved prietor of McMicking, & Co.,
through the appointment, jointly Bush Street.
Congress,
of
a
nonpolitical
study commission, composed of a
small
number
of
experienced,
widely respected authorities on

in buying policy and Pur¬

with the settlement of. the steel strike.
strive

in¬

company was
under
the
laws

again

are

chemical

and

The

Now

The

is how to de¬

course

•

cautious attitude is prevalent

chasing Executives are maintaining a flexible position so that
they can rapidly extend or contract commitments as the future
picture becomes more clear.
■
•/
:

elec¬

We
need
a
bipartisan MIAMI, Fla. — Graham & King,
Inc. have opened a branch office
in matters that affect our

States.

change,

months
and 27%

many

was

the

45%

improvement,

"There is not much change in commodity prices, but the
slight movement is upward—largely the result of premium prices

tubing,

semi-finished
and

corporated

adequately rec¬
ognized in Great Britain prior to
1he latest general election, when

need

one

than

weaker

Commodity Prices

will

corporate

finished

problem.

That

(par

The company manufactures and

Delaware

28%' reporting
AA •«

decrease.

share.

per

proceeds

general

dealing with the vari¬
phases of this broad national

Securi¬

stock

common

matter

freedom of

our

Co.

industries.

reserves or

with

sought to determine the likely trend of purchased material
inventories in the months ahead. Excluding steel items it appears

Corp., both of New York, on
Nov. 24 publicly offered
125,000

monetary

our

1958

continue

orders

"Inventories

ties

The

their

say

month

Stock Offered

for

members

our

business

Enflo.

many

"New

address
by Dr. Reierson before
Management Conference, Southwestem
Bell Telephone
Company, Galveston,
Texas, Nov. 18, 1959.

held

*An

sells

that would increase

program

of procras¬

the

pressures

evaporate,

tination could be serious.

D.' Gleicli

24%

situation,

our

disappear
spared the

making

this

been in this category,).; 47% state there is no change,
and 29% report increases.
•vi
. —
•

for

decisions.
the

shortly

primarily for use
tronics, electrical

have

tem¬

the assumption that

troubles

major party, either as a matter of
policy or in the heat of the cam¬
paign, should become committed
the

"Reflecting

production is off from last month-(not since the Spring of

and
r

porize

industry

output. We have about reached the end of the line in
maintaining production by imports, special purchases, swaps and
other ingenious methods of bolstering thinning inventories.

obtained

ways

Committee of the National
in their November report,

volume

number of separate efforts

consequence

awk¬
that

embarrassing

can

Survey
Agents,

at capacity, but it will also take
replenish inventories to enable fabricators to get back to

time to

ly, they cannot be dispelled by a
single decision or action, but ef¬
a

the Business
Purchasing

steel mills again operating

and

Our balance of
payments prob¬
are not insoluble.
Admitted¬

"the results of the steel strike are now being felt by most

lems

from

and in all areas of the country. We are facing an extended period
of adjustment. Not only will it take time to get furnaces repaired

under¬

standing.

fective

Association

com¬

prehensive picture of the problem
and

settlement

the steel strike.

aspects

topic, but much

done

inventories with the

non-steel

increase

move

tees and other

explored

- -

steelj perceive some weakening of new orders; and doubt any gen-

past

.Purchasing Executives' Group

•

the other?

Several

ical

What will

Problem—Repeat¬

body of opinion which holds that

the

fact

cannot

of : lems and what

States to accept this discipline of
the balance of payments. There is
a

The

States

and

shall

own
economic progress but
also essential in living up to

and

been

develop in the

The question is whether
conform

later

maladjustments

any

imbalances

partisan

policies, and esp«cially its fiscal and credit policies,
independently of economic trends

our

actions upon our foreign creditors.
Now that other countries have re¬
cial

prospects for taking the nec¬
essary
effective action, particu¬
larly in the election year which

grave

realistic

issues

politics, and one need not be
cynical to entertain doubts as to

some

which
bal¬
problem are

the

pete for long-term funds in order

retire

areas

policy

payments

today.

all the

crucial to remedying the

are

the

Unfortu¬

complexion, will in all probabil¬

lifting

to avoid

dismissed.

nately, virtually
domestic

uncomfortable

many

the 41A% statutory
interest rate ceiling on new bond
issues, Congress must restore to
the Treasury the power to com¬

WflWlUwi Jib

(2221)

States and the status of the

„

tfH (HfttWUM WUWfW

lies

This

the

management

strength or weakness of the
dollar in the world economy. In
the United States, the effects of
have

&' V * Jfi I

debt

deficits

f'jj A '

debt maagement, credit
unwilling or un-„ policy and the. trend of wages,
wage-cost-price productivity and. prices, on the
spiral and to master our predilec-r one hand, and the balance of pay¬
tion
for
large
budget
deficits ments
position
of
the
United
able

fiscal

among

j)'

,„

view, nevertheless„ budget,

arrived.

have

conservative

„'

fear that we are

A ward even moderately.
The per¬
policy sistent partisan criticism of the
thus is a prerequisite if the dollar Federal Reserve for its credit
poli¬
is to be strengthened at home and
cies and of the Treasury for its
now

The Commercial and Financial Chronicle

higher

ever

but these

few to report as trends.

supply

are:

An increasing number of steel

ehrome, coal chemicals and phthaiic

anhydride."

items,

Chronicle

The Commercial and Financial

(2222}

STATE OF TRADE AND INDUSTRY
Continued from page 5

rocketed to 79%

crease

4.5%

rate, and gross stocks were equiv¬
alent to 45 days' production.
/

preceding

over

week's

64,233, one of the lowest
production
figures
since
steel
shortages began to hamper oper¬

shipments
reporting identical mills were

For the year-to-date,

of capacity—33.4
of
about points above the previous week's ations.
the same as production; new or¬
revised
rate.
Output
was about
tons in December and
The reporting agency added that ders were 1.0% below production.
for customers to add about 2 mil¬ 2,237,000 ingot tons.
although steel mills are "rushing
"Steel's"
Compared
with the previous
lion tons to inventory. However,
price
composite
on
back
towards
full-blast
opera¬ week ended Nov.
7, 1959, produc¬
the
inventory buildup will be heavy melting steel scrap slipped
tions,
auto
companies
and
parts
tion
of
reporting mills was 3.5%
largely statistical. Part of it will 50 cents a gross ton to $44.83 last
suppliers
have
received
•<. only
week.
A
below;
shipments
were 6.5% be¬
year
ago, it stood
at
be steel in transit. Another part
meager
shipments
of
finished low; new orders were 9.1% below.
of it is necessary buildup of bal¬ $40.67. Mills are not entering the
steel.
market as expected, despite zoom¬
Compared with the corresponding
anced
stocks
before
users
can
The huge General Motors plant week in 1958, production of re¬
ing steelmaking operations.
resume production.
network still is idle for lack of porting
mills was 1.6%, below;,
Copper users have fared sur¬
Right now, the magazine re¬
steel parts and most other car and shipments were 3.3% below; and
ports, steel consumption is run¬ prisingly well since walkouts in truck manufacturers are
new orders, were
working
7.3% below.
that industry began
over three
ning at the rate of 5 million tons
on
reduced schedules because of
look
8

is for mills to ship

now

million

•

month.

Earlier

consumption

was

lion

month.

tons

strictly

because

not because

year,

mil¬

The

of lack

of any

months

the

is
steel,

lag

ago.

"Steel"

surveyed
35
of
the
country's major copper consumers
in five

last week and found

areas

that most

stocks

user

lag in manu¬
operations for
hopes, the

can

support

to three months
without an additional pound of
I Biggest part of the drop came copper being added to them. Some
could last as long as six months.
from the cutbacks in the auto
Many are operating at reduced
industry. Production in November
levels because of a lack of steel,
was a scant 25(^000
cars, compared
or because of fewer orders from
with a scheduled figure of some
their customers due to the steel
600,000. In addition, there have
strike.
been freight car
losses, limited
About
150
vending
machine
appliance
production,
and
the makers are
benefiting from the
facturers'

production
magazine states.

general slowdown.
'

steel

starts

one

boom in automatic merchandising
to

move,

con¬

everything from refreshments,
sumption should reach 6 million groceries, and small hardware to
tong in December. Steel use in newspaper, insurance,, and tickets.
January is still expected to be It's mainly a small business indus¬
less than normal, while consumers
try but consolidation of manufac¬
fight to bring their inventories turers and operators should con¬
back into balance. Full industrial tinue during the '60s.
"Steel" reported that well over
production is not expected to be
reached
much
before February. $2.2 billion worth of coins will
By then, consumption will come slip into the slots of automatic dis¬
very close to total steel produc¬ pensers this year, a 7% gain over
tion
be

and

inventory

buildup

will

negligible, the magazine

pre¬

dicts.
On

the
labor
situation, "The
Age"
comments
that
the
highly publicized industry offer
Iron

disclosed last Thursday was actu¬

ally made and rejected four days
previously.
Referring to the fast rejection
of the industry's
offer, the maga¬
zine says that on the controversial

The

1958.

number

By 1965, the value of vended mer¬
chandise is expected to reach $4
billion, 80% higher than it will
'59.

be in

Steel

Output Based

88.1%

Capacity
The

American

Institute

Iron

and

that

announced

Steel

the

op¬

cers

and the executive committee

insist

at all

there

give

2-B.

average

1947-49)

duction

with

weekly

While

Mr.

companies

the

total

above

McDonald

which

use

should

the

still

present level.

Steel
shortages
will
metalworking-firms for
•

six months
ment

even

reached

Hartley

survey

trouble
at

least

strike settle¬

steel

users

across

that

39%

expect

expires.

A month ago

(based

the operating rate
1947-49 weekly produc¬

tion) was *23.1% and production
371,000 tons. A year ago the actual
weekly production was placed at
1,988,000 tons, or 123.8%.

than 100

age

Index

of production is based on
weekly production for 1947-49.

aver¬

the nation finds

shortages

Auto

Output 43% Higher Than
in

year.

1958

are

postwar low
badly

The

return

Ford

Motor

Co.

—about 8 million tons—and

plants

unbalanced.

week ended Nov. 21 gave the auto

Users

will

have

add

more than 10 million tons to
their inventories just to
get them
up to normal.
In spite of the steel

industry's

rousing

have

the strike
are sure

been

was

rial that

are

lagging.
since
more

Converters and

getting only mate¬

in process when the
strike started.

Most

was

steelmakers

are

refusing

to open their books for next
year
util they've

substantially reduced

their backlogs.
'r Steel
production

Expectations

are-

zooming.
operations

Will rise to 85% of capacity dur¬
ing
this .Thanksgiving
holiday

hi^- 90%
gteelworks

1959

recent

produced during
period and that the
was

combined car-truck figure to date
had topped the six-million mark.
The estimated

will-probably

early

in
December,
operations last week

dismal

volume (5,035,beat the cumulative total by

970)

the end of the

same

1,511,024 units or-43%.
Ford, which had limited produc¬
schedules

days

past

three

weeks

and

four

conserve

supplies, programmed a full
schedule at all Ford and Mercury
plants.. In addition, the company's
Falcon production lines and the

Lincoln-Thunderbird

plant

were

scheduled to operate six days.
"Ward's" estimated the week's
car

in¬

was

jected into the week's production
story with the announcement that
Ford Motor Co. is abandoning its
line

Edsel

because

the

at Louisville (Ky.)

completely

poor

dealer orders
"Ward's"

output, at 67,100 units—an -in¬

Failures

the

car-

truck

production figure
(77,685
units) was off 53% from the 163,565

units

the

out

turned

Electric Output
1958

The

businesses had liabilities in

by 42%.

9.8% Above
electric

energy

by the electric light
industry for the week

power

$100,000

with 25

compared

ended

tailers fell to 132 from 143,

estimated

Wholesalers

Saturday,
Nov.
21,
was
at 13.812,000,000 kwh.,
according to the Edison Electric
Institute.
Output
increased
by

from

kwh. above that of
previous week's total of 13,270,000,000 kwh. and showed a
gain of 1,233,000,000 kwh., or 9.8%
above that of the comparable 1958

ices,

but

casualties

638,408

cars,

Railroads

nounced.

This

1958, and
1.4%

week

cars

States,

many

week's

the

rise

the. Middle

to 88 from 73,
States, up to 81
in
New England
up

and

contrast, marked declines
the

East

North

Cen¬

the

There

1957.

change in the other three regions.
Compared with a year ago, fail¬
mately

were

little

was

exceeded

ures

77,750
13.9% above the preceding
strike

day

even

week

1958

Over

held

with

approxi¬

1958 in all

and

somewhat.

re¬

Wholesale

compiled

Associations,

nounced.

Truck

Inc..,

tonnage

an¬

was

1% below the previous week

of this year;

reflects

the tonnage decrease

the

Veteran's

the

Nov.

11.

occurence

Holiday,

Day

These findings are based on the

weekly

of 34 metropolitan

survey

conducted

areas

search
reflects

by the ATA Re¬
Department.
The
report
tonnage handled at more

400

mon

terminals of

truck

carriers

throughout

the

general

com¬

freight

and

high level, corn prices declined;
moderately during the week; - A 1

slight dip in oats prices occurred ' ;
as
transactions slipped;
Soybean J;
,

and: buying
appreciably, but prices
down slightly.

supplies
were

expanded

was

close to the prior

week/ but prices

weakened. Rice prices were steady

reflecting'.con jipued
high domestic and. export'buying,
Inquiries were received during the
this

week,

from India,

week

Shipments

From

Lumber

1958

Down

3.3%

Barometer

production

mills

were'10.1%
for

ended Nov.

14, 1959.

week

orders

new

South America, and the Caribbean

)

mills

14.8% below production. Un¬
orders

were

amounted to 32%

of«.

.Purchases

somevyhat
and

prices

•>

sugarslipped/
the

from

;

prior

week

a dip ill trading, coffee
declined moderately.Re-

Reflecting

prices

:
,

ports ol bad yveather conditions in
growing areas in Ghana stimvtthe

lated

prices

buying of cocoa
appreciably.

rose

slightly' lower.

were

and ;
y

receipts

Hog

steady.
v\: ' '•
Although
the

salable,

„

;
supply ':

slipped fractionally, lamb prices:
rose somewhat.
In contrast to the.,
in

increase

hog prices, prices

.on ;

lard

dipped moderately.
<
...
Prices on the New York Cotton »

Exchange moved-within

a narrow

this week, and finished un- ;
changed from a week earlier. Ac- '
cording to a report- of the United ;
Btates Bureau of the Census, do-;
mestic consumption of all co.ttons >

•

during the four week period end-;
ieg Oct. 31 came to about 733,00$ >

bale$, compared with 862,000 in.
the preceding five week period,;
and 339.000 in the similar period>
last

;

year.

«r-

;

■

Dun

Shopping

Stirs Trade.
With

early Chii stmas shopping y.
helping sales of women's f ash ionaccessories,v linens, and gifts and
cold weather stimulating interest. men's and women's outerwear,

retail

was

advanced

trade

•-

from a week earlier;
moderately, oyer, a'-

ago in the week ended this;
Wednesday.
Limited dealer Ju-%
ventories held sales ex new' pasyear

In¬

Price

Christmas

Early

Some

Brad-

senger cars

appreciably below the

prior week, but volume remained
substantially over last year, ac-;

from the $6.38 of the-cor¬

cording to scattered reports,
The total dollar volume of re-;

responding date
Commodities
wholesale

cost

year

quoted
this

ago. -

•

higher

week

were

wheat, hams, lard, butter, cheese,
coffee, eggs, potatoes and steers.
Lower in price were.'flour, rye,

18, was 2%

varied

die

raw

food

eral

use.

stuffs

and

It is not
Its

the

chief

meat in

cost-of-living

function

general

gen¬

trend

food

prices at the wholesale level.

higher than a;

the

Atlantic

North

4-8 to
+4

+6;

48;

East;

South Atlantic

South

East

percent¬

—12; Mid-;

Central and

comparable 1958

following

the

Mountain

ages:

-f2

from

estimates

Regional

Inc.

street,

total of the

price per pound of 31

to 6%

ago, according to spot esti-".
mates collected by Dun & Bradyear

levels

tail trade in the week ended Nov.

beef, sugar, cottonseed oil, cocoa,
raisins and hogs.
The Index represents the sum

equivalent

Wholesale Commodity Price Index

Dips Moderately From Prior
Week

be¬

the
week
In the same
these

■
:

Central.

4-1 to +5; New England and West
South
Central
0
to
—4;
Wesjt
North

Central —1

—3; Pacific;

Coast —2 to

reporting to the National Lumber
Trade

Food

Week

shipments of 466

Europe, Africa,

change from- the
There was a decline

17, showing
prior week.

show
Lumber

y
?

so^ne i'itl-in buying
of flour and over-all volume was

and

street, Inc., stood at $5.91 on Nov.

index.

country.

Index

Latest Week

Wholesale

Trucking

Nov.

Price

Food

Unchanged
The

of 7.4%

tonnage

truck

ended

receipts moved * uptrading was sustained at' a ;

over-all

Week

d6wn-

Were

■

•Although

States.

dex,

For

prices

tral

in the
14, was 2.6%
ahead of that of the corresponding
week
of
1958,
the
American
Intercity

week

filled

Volume in rye was »"

sluggish

gions except the West South Cen¬

Intercity Truck Tonnage Up 2.6%

were

to flour mills.

noticeably
.

low

ginning of te week and slow sales -'

week

week.

than

trading in wheat, and prices were I
down noticeably: this reflected a :
marked rise in receipts at the be- :

range

below the corresponding

116
or

Pacific

61,

States, down to 37 from 55,
South Atlantic, off to 25
39, and in the West South
Central,
down
to
12
from
25.
in

Loadings in the week of Nov. 14
which were affected by re-open¬
ing of the steel mills following
the

in»4

dip

from

decrease of 8,889 cars

suc¬

manu¬

tral

decrease of

was

13.

cars

all

occurred* in

an¬

nine-tenths of 1%
below the corresponding week in
6,123

where the toll jumped to 21 from

Nov.

American

the

from

freight for
14,
1959,
the Associa¬

Loading of revenue

suffered

concentrated

Atlantic

1958 Output

tion

concerns

year ago

in 1958.

Nearly

totaled

trade, and serv¬
neither wholesalers or

contractors

was

ended

jamong

34,

facturing, retail

week.

week

from

43.

cumbed than

542,000,000

the

and
among construction contractors to

the

Car Loadings About Equal

excess

marked

was

Chicago ex- "
panded noticeably this week and »
in the preceding week.
buying
was
appreciably
higher; j
Manufacturing casualties
prices rise moder- ;
climbed to 64 from 39 last week,: this .helped,
while
the
toll
in
commercial : ately from a week earlier. There >
was
a
slight increase in steers ';
services edged to 28 from 26. Con¬
trasting
declines
prevailed • in prices, as- trading, remained at a <
level and receipts were •
other lines; casualties among re¬ high
of

Week

amount

distributed
and

week earlier and 31 last

Twenty-seven of the failing

year.

However, cumulative car-truck
output this year
(6,068,620)
is

There

Islands.

...

from 38

same

week last year.

ahead of 1958 (4,275,940)

involving liabilities of

of the week's upturn,

week's

similar

the

accounted for all
rising to 257';
from 247-'in the previous week
and 229, a year ago.
In contrast,
small casualties, those with liabil¬
ities under $5,000,'declined to 30
$5,000

current

as *

filled.

are

said

the prewar'toll

week of 1939.

will shut down

as ; soon

Business mortality

by 14%

recorded

252

showing of the re-styled '60
models. The Edsel production line

corresponding date;

year ago.

the

276.48

There

exceeded

Nov. 23 from 280.04 a
It compared with

earlier.

preceding week, reported Dun &
Bradstreet, - Inc.
For the second
consecutive week, casualties ran
above their-last year's level, 260,
but they continued below the 308
which occurred in the comparable
week of 1957.

sales

week last year

tion

note

car

steel

that

Week and that they

operations

"Ward's" said the five-millionth
the

started, and

to come.

fabricators

are

five-day

industry its best production boost
a
month, "Ward's Automotive
Reports" said.
car

cutbacks

operations

recovery,

metalworking plants
There

Another

week

moved up

December.

even

Inventories

the

32=100)

edged up to 287 in the week
ended Nov.
19 from 285 in the

ures

month, "Ward's"
said, and probably will not be able
to resume operations until mid-

compared
actual rate of 139.0% of

before the Taft-

injunction

''Steel"

much

end

has

steel.- But

rise

not

the

pro¬

capacity and 2,333,000 tons a week
ago. In
week beginning Nov. 9,
control of the union at
large, the
output was 1,291,000 tons and op¬
magazine says, he has lost control
erating
rate
:;:80.4%
[ED. NOTE:
over any negotiations on the work
The strike in the steel industry
practices.
which began July 15 was ended
Via a court injunction on Nov. 7.]
Steel Production Is Zooming!
Actual output for the week be¬
Metalworking is reaching the
ginning Nov. 16 was equal to
peak of the steel pinch, "Steel,"
78.9%
of the utilization of the Jan.
the
metalworking
weekly,
re1, 1959 annual capacity of 147,ported Nov. 23.
Estimated per¬
>
It estimated that 450,000 of 500,- 633,670 net tons.
centage for this ,week's forecast
000 workers have been laid off
by
is 88.1%:

that

(based

Commercial and industrial fail¬

Chrysler Corp., which has used
most of its steel stockpile, will
close some of its car plants before
up

will top 4 million, an 8% increase.

(work

who

Business Failures Slightly Higher

shortages.

machines

erating rate of the steel companies
will ^average
*155.3%
of
steel
practices) -clause,
David McDonald, President of the capacity for the week beginning
Nov. 23, equivalent to 2,495,000
Steelworkers,
is
literally
the
captive of the locals, local offi¬ tons of ingot and steel castings

2-B

Thursday, November 26, 1959

...

of gross stocks.

reporting softwood mills, un¬
filled ordersw ere equivalent to
15 days' production at the current

Lower

prices

grains,

flour,

+2.
Extremely
cold

-weather

women's
last

and moderate gains oc-'

areas

year

lard, coffee, sugar, and rubber off¬
set increases on hogs, steers, and
lamb

suits fell slightly below that

this

week

holding the gen¬

commodity price level mod¬

erately below the prior week. The
Daily Wholesale Commodity Price

Index, compiled by Dun & Bradr
street, Inc., dipped to 278.38 (1930-

sportswear;
similar

1958

of men's

volume
week.

clothing

women's
of the-

Over-all salesu

rose

moderately/^,

from last year

especially in over-'
coats; purchases of men's furnish-in?<

in accessories, dresses, and

curred

eral

in-

boosted volume in
coats considerably over

many

rpmainprt

rlosp to

vear

aCO.'

«»,

Volume

Number 5S02

ISO

««J«

UIIMW tWllnWWilWHtlrt

volume

and.

was

bedroom

.in

sets,

(2223)" *31

^Domestic-PQliey'fo Aid
A-C
JiJi, I s\Y\trivv C)T

1 111 Ir
^

American influence has been-so that are-needed" in

any -case fo?
our own domestic welfare. To put
it another way, by .following poljU
twtx.general lowering of living-stand-, cies aimed at domestic price sta-

>:
which.

.fitted hereafter by the Developfn

n„rt

ards in all countries.It wquld in-, biljty and .lasting economic
be ironical if the United growth, we are simultaneously

tnfinnnPA

Sds States_^?Ee to adopt suc^

exports!

While
The rapid accrual of rerT
abroad permitted an easing
fn DJ
nrn
vision sets expanded noticeably of monetary conditions and thus;:^^1*™ > - pu£, ^mencan
profrom a week earlier, volume in helped set the stage for the:-Indusmost other appliances was steady; trial recovery and expansion now
total appliance volume slightly proceeding apace immost of^Eur^
exceeded that of a year ago. Sales rope. This .business:..,boom-.,shouldadeauate
of draperies were up noticeably logically stimulate .American.
from last year, linens were up ports to Europe. There are some
slightly, and, the call for floor signs that, this is happening, hi-

bolstered

chairs,

juvenile

and

forts.

furniture.. While purchase of tele-

early" to

too

fK.

United States—have made signifi- ute generously to 4he economic
cant steps towards a freer pattern development of other countries',
of international trade and pay- Despite all that has been said
mSl
'
i •
.....
■
about concern for the dollar, heye
- There is at present a disturbing and abroad, the fact remains that
tendency to revive demands in dollar assets constitute a vast seg4
ibis country for tariffs sufficient ment of international monetary
!° compensate Jor the difference reserves; In our efforts to keep

gfrd]S

creases

foods'
foods,

irozen
frozen

tL Sh»iv Ew

say

hasr'carried

rates

wage

here

abroad-

and

the dollar

«ob wf
Evt
a J^ove•
move overlooks The
wholelong As
the Such
°ucii. a.
the whole

for

•

^Stai„ea

worthy of this

position^

I am sure that
tte
that*- we will have the

of g
trend: On the other;;
candy, and
in
lined
hand, interest rates' in
dairy products and canned
'
have begun to rise and
Europeantanidiv
goods was steady.
' "
V',
The buying of women's Spring
.

-third .quarter marks the beginning-

baked -goods

•

whin

reported - slight
in- whether; the better export level.
during the week in sales- (after seasonal adjustment) of the •

Grocers
of

though

unchanged.

was

wal

prac~. strengthening the dollar as a key

tlces at the very moment when currency in the whole, financial
m>ost ?.ther countries—after years structure of the Free World, and
af active encouragement by the enabling our economy to. contribV

serves

^ p^ppse0fh1^

coverings

rAV III f", M l;S strong, toward less ^restricted
*
world trade, and would bring a

will^reinforce these deliberate ef-

up-

■■
4-^-m

rm,.

■

barricades- woyld also correct the balance of-payments
major Jsetbaefc. in the deficit .has .provided an added
healthy postwar trendy in which argument in -support &t policies
mean

moderately from last year. There Continued from page U
Were
marked ."year-to-year in- forces now in operation
creases

aw.

higher

; Early, Christmas shoppers *
stepped up their buying of gifts,
glassware, china, and silverware ~
week.

/|NW«ti WWIW HIWD'WWWn

The Commercial and Financial Chronicle

asi"?®

this

i^Cl

t1,

classical theory of international support of all who are interested
trade-especially the valid prin- in enhancing this Ration's,.leaded
f*
thaVm<?tually advantageous ship in an increasingly prosperous
J^o-way trade can perfectly well world.

sportswear

again

rose

mav

volume

than

the

Chicago

was

fyom the similar 1958
elry

industrial

bere while monetary, conditions
week, gew- abroad_fiayq ,remained comparaProvidence tively easy.. ,
.
,
,

wholesalers in
and New York reported substan¬
tial year-to-year gains in Spring
There

merchandise.

marked

remained

both

the

week and a year ago.
Trading
m
industrial fabrics
and marx-made fibers picked up
•

this week, as many customers de-

pendent

steel

expect

in-

ihr-:,. nuthnt. in
thP rnmmd
their
output in the
coming

nrPQcp
crease

weeks ano steel supplies become a
little more plentiful.
Although
transactions

cotton gray

goods

slowed

up
this week, stocks of
print cloths and sheetings in some
markets were still limited. Book-

in-, woolens, worsteds, and
earpet wool were sluggish again
^this week.
New England dyeing
.and finishing plants reported a
ings

benefit to the American

ican

services;

goods-and

•

his address to the Fund-Bank

great deal of thought and effort
has been given to the problem of
stimulating more private Ameri-

can investment abroad through
dLi tn nnin af fhn Wpghindtnn snecial Guarantees and t.av ponpesglad to note at the Washington -special guarantees and tax concesmeetings virtual unanimity on the sions. Now I think we can all
part of the central bankers with agree that we would like to see
whom I talked that dollar dis- more of- the total international
crimination should be eliminated flow of capital on a private basis
as rapidly as possible. Britain and
and less on a government basis.
France
have
recently
removed; But in the light of our present
many of their discriminatory con- balance of payments position, I
trqls and the Fund's strong state- think there is perhaps less need
ment of a few weeks ago on this (except in carefully selected
subject should bring further prog- cases) for special stimulants to

lty which no longer exists. I was

ress.

Ol^n^n

Always Had

think there has

ital Shares, Inc. The offering price
is to be $10 per share in single

good
deal of exaggeration of the sudden
lack
0f competitiveness
of
American products in comparison
with those produced abroad. Some
0f the commentators sneak

rL:"ef
were

brand-new
levels

wage

our

a«?

nomenon.

What is

The fund's primary obiective ia

if it

ff.1! long-term- capital

fund'wiU
xriofLIr,+

several times

irnorr^w

This

new

nanemff

Growth

economic

goods
sluggish
again'

'-in fresh meat and eggs, but the
call for poultry, butter, and cheese
>lwas steady.
'

housirie

Private
^

starts

dinned

slavts dipp^d

^niuial rate

^ofS l^SO 00J

arcordtnk loathe United Stated De-

bartmenf oi

Comnjerce

The de-

1tributed1 nrimarifv

eline

was

tigh?

&«unolv
•"IP y

mnrtemre
o

direction

International

the

Bank would seem to constitute a
most promising guarantee against

Loans Policy
•

^ent rn^paiticular, the total flow
should in fact be enlarged so that
we.can make accelerated progress

onnrlifinnc
conditions

Secondly, 1 would be most
happy if, as a result
ments

deficit,

States

who

courage

burden of providing foreign capi-

restricticmism

tal was the recently announced
policy under which funds com-

others,

Reserve

Board's

.increased

above

Nov.
the

Another step intended to engreater

sharing

period last year. In the preceding
week, for Nov. 7, an increase of
weeks

reported.
Nov,

ended

ease was
crease
'

For
14

the
a

four
6% in-

registered and for Jan.

registered lncrease
and for Jan.
was
a

noted.
-

According

sales

New

to
,

the

Federal

department

York

Re-

§tore

economy
^be

forces

present

X/CUo. V/llCICU
X A. Hogle & Co.; Peters, Write?
& Christensen, Inc. and GarrettHromfield & Co. headed an qnderwriting group which puljlic^
offered
on Nov. 23 a new issue
nf
d:«nnnnnn nmrnrovfiKin cKnrHiJ

share.

per

Tho

^phanTiirp«

redpmntion

Qiimppr

arp

the

ontinn

the

*1™. 0??pn of M

turbed to

°f_ the paythe

United

nrotectionism

price

our

ntim

own

economy,

competitive cost and
structure. It seems to me
a

ciear that this
exnects

doubts

is what the world
that

and

our'

policies

and

h66" .expfes®ed abFoad

this

see

including

an
,

country, as - in
greatly dis-

attempt to solve

attempt xo soive

over

the like period

last year. In
Mmf

establishing

additional

,—u„ui..

preceding week Nov. 7 a 2% effort fjrobably

increase was shown. For the four
crease

ended
was

1958 period.
a

import

quotas. Not only would such an

incorporated under the laws

Wyoming

June 12, 1940. It

u..

prove

Minnesota, Iowa, Missouri, Idaho,
Wisconsin, Texas and Oklahoma.
The company is engaged in the
produc¬

business of exploring for

ennh

Dusmess or exploring iur, piuuuc

have

ing and^'transporting oil md natunil

and

usually ral gas, of refining crude oil

and

a^o

vofinincf

nmdA

determination to pursue Realistic of dlstrlbutmg Petro eul
and
Suraeeous noliei^.
at wholesale and retail
t„

pnn

ThA rAaiiv imnnr-fanf

thk

nnint

end. The really important point is
™

week ended! Nov. 14 increased 6%

cipal amount thereof and accrued

the first line of effec- ^Mexico, South Dakota, Nevada,
is to maintain sound Washington,
North Dakota,
Minnncnfo
Tnuro
T\/Ticcnnri
T/lnlin

wWcD^are^Sways

should

j
U1

City for the. showed

the

weeks

^ korve " System

un-

believe in a liberal
sh0Uld lose ground to

14,

for the week ended

was,

KtO" ( ,0
XVI5# Vv.«
Of-pOrDrl

h TOm 1PT*

1
TWha

was

First Line of Attack

Americans but also the citizens of ciusion that
more prosperous nations tive attack
abroad.

In-

Federal

'-5%

del'Very of the initial
4

areas« This is a
After viewing this balance of is qualified to do business in,
merits personal sacri- payments problem from many Wyoming, .Colorado, Nebraska,
«P«^ I cannot escape the con- Kansas, Utah,_Montana,

the

'. dex

•

state of our economy, from bping
interest, plus certain premiums.
able to afford the enormous outThe company, having its rejay that is made every year in the
United States on research and de- finery office at Cheyenne, Wyq.,
vei0pment and on highly produc- anc^ ^ general and producing
division offices at Denver, Colo.;
tive new equipment?

the living standards of

m raising

Department store sales
country-wide' basis as taken from
on

■

in favor

clearlv

^—.„„vv.v,

oowiopment financing pro»aimimsn tne total
X
sf or inesp/PUrPOses.
ca^
wonomic develop'

the Association. The^prospect that^^.4^8?
Association will be under- the |.oaf which

Sales Up 6% for Nov. 14 Week

•

was

Hopeful Result of Our Tied

Nationwide Department Store

oenmilv

unwise policies.

^ money.
'

the Association should follow in
its lending operations, and some
questions were raised about its
eapitgl structure, the sentiment

'"the

S»

grpwth, The
~open-»md in^

canned

were

Vthis week, but interest in frozen While differing views were ox% foods and fresh produce moved pressed at the International Bank
>
up somewhat.
Declines occurred- meetings as to the policies which

adiusfed

.
i-i

improved their competitive
standing through more modern
plant and equipment, more efficient selling methods and prompter
delivery. (If we look merely at

and

become

ft""?

ohe-

is the de-

to which foreign producers

gree
have

involving less than

transactions
$10 000

discovery that

are

countries

to be issued by Cap-

cent)

one

been

•,

Purchases

'wholesale

bhSTGS

Life Insurance Shares and Growth
Stock Fund Class A stock (par

Higher Wage

' Level

[laundry equipment, slipped some-'talks with the central bankers of £e to -curtail overseas expendi- restraint, make it possible to come
what reflecting limited supplies the industrialized nations. Imple:u^l .r ,^oufc ve defense ana cioge ^o balancing our internaat the wholesale and manufactur- men ting the principle, however, is economic development so severely tional accounts while continuing
ring levels induced by steel short- less easy and clear-cut. In the
to maintain a much higher averages.

UHQ S

Tj*,...ix,

XXVXV4- VV 11VA>

wori^

surgence on a large scale of longterm financing of the capital needs
of the underdeveloped countries
As Dr. by international financial centers

meeting, these measures were born
in an environment of dollar scare-

tic trade, should be allowed to.
Shearsop, Hammill & Co. will
;In the private sphere, as well, it develop naturally with a mini- head an underwriting group whicfc
is my hope that we shall see a re- mum of government interference. wiU offer 500,000 shares of Capital

Jacobssp^ forcefully pointed out abroad. Over the past few years a
m

T<"1 TTndprWritP

consumer

induce private American capital the trend of wage rates here and
There was a marked rise in
As for methods of reducing the to go overseas and more need fm- abroad, we find that it has been
wholesale orders for draperies and net
capital
outflow
from
this eoeouragmg piivate
capital in rising more rapidly abroad11 than
curtains this week, and appre'ci- country, Secretary Aiidersbh* has "Other finencjal. centers to. plgy an here in the past seven or eight
able year-to-vear gains occurred, called for "a reorientation of *thef
-important role m 11- years—and this may fveli con-

^moderate rise in incoming orders,
.

will

thjs kil)d Qf

which discriminate against Amer-

prior

Endh»s Dollar Discrimination

Over-all sales of men's merchan-

during the week in the call

for

countries

frankly - espouse a policy of taking ,*n
in nhtainint*
nhtainincf a nrnduHnrnrhirf frnm
thA
OT1 a larger share of the foreign cheapest available source Changes
assistance burden, in order to as- in the flow 0f
international trade,}
ciir£>
r»nntirmf»rT
nvncfrncc
fmxrarrl
sure
-continued
progress
toward as [n ^be flow of our own domes_

boys
clothing,
especially
Spring slacks and sports jackets,

was a

Foreign governments also have
a
role to play in remedying-the
imbalance by removing most of
the remaining measures a b r o a d

dise

prod_

some

was

where bookings showed no change

rise

produping

corrective influ-

year

tlon

weaken

a|vant^ge V

^comparative
:?e-X^: ^nCe ,tne ,^Fr^^bere c0untry in

wholesale markets

niV utbe^bai.?S^!??.,and..n,®ed
li~any 7undamen't^

bgtween

international

our

_.,_.i;xs__

abortive, by sibilities

With Arthur B. Hogani .}
(Special to The Financial

Chronicle)

resoon_

and our responsibility
for maintaining sound conditions

UOS ANGELES, Calif.

Ernest

Ernest J.

associated
Nov. 14 a 8% inabroad which could prove at least in ouDf own economy.-The two ob- with Arthur B. Hogan, Inc., 618
reported
over
the
"
tTa
-foras, effective as our
Jan. 1 to Nov. 14 as. effective as our own;
own; but
but the
the jectives
jectives are
are furthered
furthered by
by the
the same
same South
South Spring
Spring Street.
Street.^ He
He was
was "for*

o% increase.

giving

rise

countermeasures

process

competing

erect

program.—and

the need to help

Markhajn has become
ct«At

meriy with Hill, Richards & CO. j

(2224)

The Commercial and Financial Chronicle

* INDICATES

Securities

Now

Abbott-Warner Co., Inc.
/
Aug. 12 (letter of notification) 62.500 shares of common "
stock (no par).
Price—$2.70 per share. Proceeds—To
L3repare estimates and to submit bids, as prime con¬
tractor on specialized construction projects. Office—123
Denick Avenue,
Youngstown, Ohio.
Underwriter —
Strathmore Securities, Inc., 605 Park Building, Pitts¬
burgh 22, Pa. This offering is expected to be refiled.
•

Aircraft

Dynamics International Corp.
(12/15)
Sept. 25 (letter Of notification) 100,000 shares of com¬
stock (par 10 cents). Price—$3
per share. Proceeds

mon

—For

general

corporate purposes.

Street, Dover, Del.

Office—2z9 S. State

Underwriter—Aviation Investors of

America, Inc., 666 Fifth Avenue, New York 19, N. Y.
Alaska Consolidated Oil Co.,

Inc.

Sept. 17 filed 3,000,000 shares of common stock (par
£lve cents). - Price—$2.50 per share.< Proceeds—For fur¬
ther development and exploration of the oil and
gas po¬

tential

the

company's Alaska properties. Office—80
Street,'New York. Underwriter—C. B. Whitaker
Co., New York.4 Offering—Expected in about three to
Wall

four

weeks.

*"•/-

^Alberta Municipal Financing Corp.' (12/11)
'Nov. 25 filed
$20,000,000 of sinking fund debentures,
due

Dec.

15,

1984.

The debentures are guaranteed un¬
to principal and interest by the Province
Of Alberta. They are payable in the United States cur¬
rency. The debentures will not be redeemable, except
by
operation of the sinking fund, until Dec. 15, 1969. Price

conditionally

—To

sale

amendment.

debentures

after

Proceeds—From

conversion

into

the

Canadian

funds, will be applied to the purchase of securities of
municipalities, cities, towns and villages within Alberta
as
loan applications are approved.
Underwriters—The
First Boston

Corp. and Wood, Gundy & Co., Inc., both of

New York.

Allied Small Business Investment
Corp.
Sept. 29 filed 100,000 shares of common stock (par $8).
Price—$11 per share. Proceeds—To be used to provide
equity capita] and long-term loans to small business
concerns.

Office—Washington,

supplied bv amendment.
American

June

Investors

filed

Underwriter—To

Syndicate,

600,000 shares of

Inc.
stock

common

(par

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of

shares of common ($1
each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
national Trade Mart, New

Orleans, La. Underwriter—
Lindsay Securities Corp., New Orleans, La. The SEC
a
hearing, to begin on Sept. 2, which will

had scheduled

determine whether

ing the offering.
•

American

stop order will be issued suspend¬

No decision has been announced.

Service

Life

Insurance

corporate

larly engaged companies.

Office

—

113

•

American

—

23rd

First In¬

purposes.

Office—Roslyn, N. Y.
Underwriter—Hilton Securities
Inc., formerly Chauncey,
Walden, Harris & Freed, Inc., 580 Fifth
Avenue, New
(York, N. Y. Offering—Expected any day.
.

• Amhoc, Inc.
Nov. 10 (letter of
Jan.

bentures and five shares of

Per

common

due

stock

consisting of $500 decommon stock.
Price—$750

unit. Proceeds—For working

capital.

Office

7848

Wisconsin Ave., Bethesda, Md. Underwriter—None.

(12/14-18)
'
$2,250,000 of subordinated
debentures, due
Dec. 1, 1974, with warrants
attached to purchase
45,000
shares of common stock
(par $1) and (2) 90,000 shares
of common stock
(par $1).
The debentures and stock

are

18 filed

amount

chase

one

common

offered

used

stock.

•

interest
to

units

debentures
share

Proceeds—To
crued

(with attached

common

Price—To

pay

consisting of $50 principal
stock)

off $400,000

warrant

and

two

pur¬

supplied by amendment
of

serial

notes

plus

ac-

thereon; approximately $220,000 will be

redeem

and

pay

accumulated dividends

the

company s outstanding 2,000
ferred stock,

shares of cumulative preapproximately $143,000 will be used to pay
Anderson-Nichols & Co.; approxiniately $800,000 will be used for
machinery and equip-

promissory note to

ment; and the balance will be used for
general

ate purposes,

corpor¬

including additional working capital. Office
Causeway St., Boston, Mass.
Underwriter—Putnam
Co., Hartford, Conn.

—150
<

•

;
-

Anthony Pools, Inc.

foar tlVprL 2°0^00, shares
Tn
~T°

iirI

vard, South Gate, Calif.

outstanding common stock
amendment. Proceeds
Office—5871. Firestone Boule¬
Underwriter

^ supplied by

stockholders.

—

Marron, Edens,

15,

1959. The

shares of

common

debenture^
on

.are

before

convertible -into, 13
of three

the expiration

from--date of issuance; into 14 shares after three
but prior to five years from said date; and into 11
shares prior to maturity but after five years from said
-date. Price—At par. Proceeds—For payment oC unsecured
loans and working capital. Office—2 N. 30th St., Phoenix,

Arkansas
filed

Securities

due

1989.

Power & Light Co.
(12/8)
$15,000,000 of first mortgage bonds,

Proceeds—For construction.

★ Benson
Nov.

series

general

corporate

Newport

•

—

8806

Van

Underwriter—

Offering-

Australian Grazing & Pastoral
Co., Ltd.
13 filed 4,000,000 shares of common stock. Price—
At par (5614 cents per
share). Proceeds—To purchase

Underwriter

—

Bankers Preferred Life

100,000 shares of
share.

per

common

Proceeds—For

incidental to operation of an insurance
Office—Suite 619, E. & C. Bldg., Denver,

expenses
pany.

Underwriter—Ringsby

Underwriters,

Inc.,

com¬

Co1"
Denver £

Colo

BarChris Construction
Corp. (12/4)
Oct. 28 filed 280,000 shares of common stock.

per

share.

—

Proceeds—For general corporate purposes,
Office — 35 Union Square West,

Underwriter—Peter

Morgan

&"Co.,

New

York.l
Basic

Products

Oct. 30 filed 100,000 warrants for the
purchase of com¬
stock, and 100,000 shares of stock reserved for is¬

exercise of said warrants.

Proceeds—The

proceeds from the sale of the stock will be used to re¬
deem notes issued in
equal amounts to Mass. Mutual
Life Insurance Co. and New
England Mutual Life'Insur¬
ance Co. in connection with the
(consummated) acquisi¬
tion

(11/26-12/4)

corporation

and

Biedermans of

acquired

The

shareholders

are

filed 400,000 shares of common stock, to be
initially to independent dealers who handle the
company's products, with the unsubscribed shares to be
12

offered

public.' Price—$1 per share. Proceeds—
dealerships, increase inventories, and
funds for advertising and increase .working
Office—10232 South Kedzie Ave., Chicago, 111.

the

establish

new

$50 principal

common

amendment.

amount

stock.

Price

Proceeds—For

debentures and five
To be supplied by

—

the

purchase

land

and

construction, thereon, and for the manufacture and in¬
stallation of necessary equipment.
Office—1609 Texas
•'

Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
Texas.
Border Steel Rolling Mills, Inc.
Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record Aug. 31,
1959, on the basis of 49 new shares for each share then
held.
For

Price—To be supplied by amendment.

general

corporate

Bowmar

Nov.

purposes.

Underwriter—None.

Instrument

filed

Corp.

(12/14)

stock (no par),
shares will be offered for the company's
will be offered for the account

78,000 shares

of which 45,000

Proceeds—
Office —1609 Texas

common

account and 33,000 shares

of several selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. Office

Corp.

mon

upon

con¬

Co., New

Missouri corporation, all of the out¬

Street, El Paso, Texas.
Price

including expansion.
York.

Insurance Co.

(letter of notification)
(par $1.60). Price—$3

stock

the

units

Office—1404 Main Street, Houston

2, Texas. Underwriter—Daggett Securities, Inc., Newark.
Offering—Expected in about 30 days.

Illinois

are

Management Corp.
Sept. 10 (letter of notification) 300,000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—

Jan. 30

missile

Border Steel Rolling Mills, Inc.
Sept. 14 filed $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50 par), to be offered in

Bankers

For working capital.

its

Fuller

missile,

Underwriter—None.

Broadway, New York City.

N. J.

created

provide
capital.

Highlands,-,
Co., Inc., 52

under

Newton

Parks

major

David BiederWilliam Biederman and the Trustees of the Trust

offered

—

Office

through

Underwriter—S.

deceased, all of whom

Oct.
,

Harrison Electrosonics, Inc.
Sept. 25 filed 133,000 shares of common stock
(no par)..
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness, and
the provision of funds to assist the
company's expansion
Everett

the

—

Robert Kamon is President.

market.

company

Bla«ich-Ettef Inc.

cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes

civilian

the

Will of Charles Biederman,
also selling shareholders; the
balance will be used for general corporate purposes, and
the possible future expansion of its business by opening
of additional stores, requiring the carrying of additional
inventories arid additional instalment obligations, and
also possibly for the expansion of warehouse facilities.
Underwriter
Dempsey-Tegeler & Co., St. Louis, Mo.

common

Underwriter—G.

aircraft companies

Inc.,

Estates

City, Mo.

the

operations

serves

Biederman Furniture Co.

man,

Jan.

Mass.

from whom such stock is be

stocks.
Office—301 W. 11th Street,,
Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc.

aluminum

standing stock of both corporations.

system. Office—501
Del. Underwriter —

Cisco, Texas.

its

Springfield, Inc.,

Associations Investment Fund

Avenue L,

Proceeds—For

common stock (par
,$1), Of the total. 216,549 shares will be sold for the com¬
pany's account and 115,086 shares are being offered for
the accounts of certain selling stockholders. Price—To be
supplied by amendment. Proceeds—$845,170 will be used
to purchase from
the shareholders of Biedermans of

Aug. 28 filed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬

None.

amendment.

de¬

stock.

Oct. 16 filed 331.635 shares of class A

& Gap Pike, Newport,
Laird, Bissell & Meeds, Wilmington, Del.

division.

Alton,

distribution

common

York.

notification) 100 shares of class A com¬
(no par). Price—$40 per share. Proceeds—
water

subcontractor

and

tainer

Artesian Water Co.

the

of convertible subordinated

130,000 shares of

magnesium, stainless steel and titanium.

leading

rocket

Nov. 2 (letter of

stock

addition

fabricates

Expected in December.

expand

and

supplied

•

Office

purposes.

Wyck Expressway, Richmond Hill, N. Y.
A. D. Gifhart & Co., Inc., New York, N.

1971

additional manufacturing equipment, acquisition of prop¬
erty and retirement of a $500,000 bank loan. Business—

ir Arkay International, Inc.
Nov. 18 (letter of notification)
100,000 shares of com¬
mon stock (par 10
cents). Price—$3 per share. Proceeds
—For

due

Price—To

be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Stone &
Webster Securities Corp, and White, Weld & Co. (joint¬
ly); Blyth & Co., Inc. and Dean Witter & Co. (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc. and Kidder,
Peabody & Co. (jointly); Eastman Dillon, Union Secu¬
rities & Co. and Equitable Securities Corp.
(jointly).
Bids—Expected to be received up to 11:30 a.m. (EST) on
.

Manufacturing Co., Kansas City, Mo.

filed $2,000,000

bentures

Underwriter—To

Dec. 8.

r».-'

»■ »\y.'. \

Ea.stman Dillon, Union Securities & Co. (jointly);
Morgan, Stanley & Co. Bids—To be received up to 11
a.m. (EST) on Dec. 15 at Room
1900, 195 Broadway, New
York, N. Y.

Co., New York.

Oct.

and

be used to repay part of an outstanding long-term
bank loan incurred for construction and acquisition pur¬

Dillon, Union

•>£' i :

'/'

corporate purposes. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; White, Weld & Co.

Louisiana

Underwriter—Eastman

1, 1959 and^ due Dec. 1, 1994> Proceeds—To repay
outstanding advances from the American Telephone &
Telegraph Co.; any balance will be used for general

'•-**

••

Dec.

Gas Co.
(12/3)
$16,000,000 of first mortgage bonds due in
Price—To be supplied by amendment. Proceeds—

poses.

of certain selling stockholders. Pricesupplied by amendment. Proeeeds—For working
and other corporate purposes. Underwriters ."—

„

10 filed

1979.

be offered foT the account

and 300,000 shares will be sold

company

accounts

jr Bell Telephone Co. of Pennsylvania ^ (12/15>t-;-■:»,
Nov. 20 filed $30,000,000. of 35-year debentures dated

Underwriter—None.

Nov.

Pro¬

Smith, Barney & Co., New York; Kirkpa trick-Pettis Co.,
Omaha, Neb.; and The First Trust Co. of Lincoln, Neb.
,

years

Arkansas

issuing

capital

years

Ariz.

share.

per

Office—131 S. Wabash Ave.,
Underwriter—None.
r
'
*

of which 70,000 shares are to

of $56 each at the rate of one $56 debenture for each 100
shares or a fraction thereof then held. Rights expire No-

.yembpr,

Price—$100

of the

in denominations

1959

shares held.

Manufacturing Co., Columbus, Ohio
(12/15)
filed 370,000 shares of common stock (par $1)

for the

Oct.

common

Beaten

stockholders

record

6V2

Chicago 3, 111.

Underwriter—None.

2,000 shares of

ceeds—For working capital.

pur¬

Nov.

suance

(12/7-11)

each

for

stock

^ Arizona Color Film Processing Laboratories, Inc.
Nov. 12 (letter of notification) $291,760 of 10-year 6tyk%
convertible debentures to be offered for subscription by

New

B+a/*ide' L* L' H• Y. (11/30-12/4)
Sept. 9 (letterlnCr''
of notification)
150,000 shares of common
stpek (par one cent).
Price—$2 per share. Proceeds—For
expansion and general
corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New
York, N, Y.

stockholders at the rate of two
common

Brand Hosiery Co.
(letter of notification)

(no par) to be offered for subscription by stock¬
holders of record Dec. 10, 1959 on the basis of one share

inventory, new tools, construction and for working
capital.
Office—5871 E. Firestone Boulevard, South

into

*Aneiex Corp.

-Nov.

stock

Proceeds—To

ISSUE

general corporate purposes. Office—3830 West
St., Milwaukee, Wis.' *

Bear
Nov.

for

Thursday, November 26, 1959

for

cu¬

chase

Gate, Calif.

REVISED

offered

stock

Price—At par ($1 per share).

Office —1301

notification) $20,000 of debentures

15, 1970 and 200 shares of class
(par $50) to be offered in units

;

held.

ITEMS

241,200 shares of 5%

preferred

common

used

ADDITIONS

SINCE

Grant

preferred shares for each three shares of

Kansas

(letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—

stock

/For general corporate

convertible

subscription by

ment

Yachting Systems, Inc.

Oct. 30

•

Registrar—The First Na¬

Anthony Powercraft
Sept. 8 (letter of notification)

simi¬

Northeast

Street, Oklahoma City, Okla, Underwriter
vestment Planning
Co., Washington, D. C.
.

Co., Inc., New York.

mulative

including, possibly, the acquisition

mon

Co.

Sept. 14 filed 300,000 shares of common stock
(par 40b).
Price—$3.50 per share. Proceeds—For general
purposes,

Sloss

Registration

tional City Bank of New York.

supplied
the

Hevi-Duty Electric Co., with the balance

Bluffton Road, Ft. Wayne, Ind.
Underwriter—
Paine, Webber, Jackson & Curtis, New York.

—8000

Breuer & Curran Oil Co.

Sept. 24 filed $1,500,000 of co-ownership participations
in an oil and gas exploration fund. Price—The minimum
participations will be $10,000. Proceeds^To conduct oil
and gas exploration activities. Office—3510 Prudential
Plaza, Chicago, 111.

j#fa,nar

Volume

190

f'u

h,l/ ^

to.! mn.,i

,.,

Number 5902

Burch Oil Co.

stock

(par five cents).

Price—$2.50 per share.
Proceeds—For building and equipping stations and truck
Stop and. additional working capital. Office—C/o Gar¬
land D. Butch, at 707 Grattan
Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town
Bank Building, Baltimore 2, Md.
Cadre

Industries

Corp.

Sept. 25 filed 17,532 shares of
to be
one

offered

to holders

share for

new

stock

common

of such

each

basis

the

held.

(par $5)

Price—$04

per

share. Proceeds—For general corporate purposes, includ¬

ing

working

N. Y.

capital.

Valley

Office—20

St.,

End well,

Underwriter—None.

California

Metals

Corp.

July 27 filed 2,500,000 shares of

common

Price—

stock.

At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for assaying; and for

general corporate purposes. Office—3955 South State St.,
Salt'Lake City, Utah.

Underwriter—Cromer Brokerage

Co., Inc., Salt Lake City.

California Mutual Co-Ply, Inc.
SepL 14 filed 140 -shares of voting common stock.
—At par

($5,000

related'facilities

Price

Proceeds—To purchase the
Plywood Co. for
$690,000, with the balance to be used for working capi¬
and

share).

per

of Durable

tal.

Office—Calpella, Calif. Underwriter—The offering
is to be made by Ramond Benjamin Robbins, one of the
nine promoters," the list of which also includes Harry
Ernest Holt, of Eureka, Calif., President of the company.
Calumet & Hecla, Inc.,

Chicago, III.

Oct. 27 filed 188,340 shares of common stock, to be of¬
fered in exchange for all of the common and preferred
stock of Flexonics Corp., on the basis of one Calumet

four shares

a*»ft

CALENDAR

•

■

•' V'

■

Office—150

■

held

Nov.

16.

The rights expire

Broadway, New York City. Underwriter—
through the efforts of the officers

directors

and

the

Pomrock, President.
•

Citizens

(Desnpsey-T«geler

ceeds—To

Office—33 Maiden

invested

in income-producing securities.
Lane, New York City. Underwriter—
Higginson Corp."
•
,*
/
y

Lee

Lane, New Haven, Conn. Underwriter—Putnam
Co., Hartford, Conn.
v -:

ir Clary Corp.

holders

by
1959

its

(with

common

stock

for

Dec.

1,
of

cash

•

standby) at the rate of $100
attached warrant to purchase

common

day

debentures, with

for

each

record

100-common

share
for
each
22
shares held (with an
over¬
subscription privilege). Price—At-the-market. Proceeds
—Not to exceed $300,000, which will be used for work¬
ing capital. Office—408 Junipe.ro St., San Gabriel, Calif.

Underwriter—None.

Inc.)

& Co.,

Lyon

(Ross,

Coastal

Nov.

States

filed

Common

(Vermilye

Bros.)

(Van

Ncel & Co.)

Alstyne.

—Common

Co., Inc.; Herbert Young & Co.,
Cohon & Co.; Schrijver & Co. and -

Richard Bruce & Co.,

.•■•■./.

Colorado

* Cincinnati

Gardens, Inc.
(letter of notification) 32,967 shares of com¬
mon stock (no par).
Price—$9.10 per share. Proceeds—
To pay outstanding contractor's bills and for working
capital., Office—2250 Seymour Avenue, Cincinnati, Ohio.

Nov.

Underwriter—None.

Co. of New York

Life Insurance

10 filed

60,000 shares of

Proceeds—For

share.

per

December 4

stock

common

Morgan

3470

—

December 7

Dilberts

Missouri Power & Light Co.__
'/
•
(Bids 11 a.m. EST) $4,000,000

$1,680,000

(Ira

December 10

Common

Sloss

Co.,

Inc.)

200,000 shares

Haupt

Co.)

Dyna-Therm

(William

Haupt

Co.)

December 11

Co.)

Bond

(Myron

$915,642

Lomasney

& Co.)

Lomasney

& Co.)

Anelex

Oak

(Darius

;—Bonds

Co.)

$145,000

Co.)

$125,000

Bonds

Valley Water Co
(Bache

Fastline,

Inc.

Garden

Land

Co., Ltd

(Hill,

Darlington

(F.

•

Eberstadt

78,000 shares

Common

250,000 shares

-Debentures

Financial

Federation, Inc
Peabody & Co.)

(Kidder,

$8,000,000

Common
235,000

Western

Common
Securities

(Pleasant

Co.)

(Ira

Common

Hogle & Co.)

Corp.—
Haupt

Debentures
$1,500,000

Co.)

$300,000

Midwestern

Mortgage
(J.

Common

Jadkson & Curtis)

(Dillon, Read & Co., Inc. and Riter & Co.)

Gulf

Common

—

Copperweld Steel Co.—

......

Common

Minitran Corp.

Palomar

250,000 shares

90,000

(Lee Higginson Corp.)

-.Common
Co.)

Trans-World Financial Co

& Co.)

Citizens Casualty Co. of New York—

Common

•

Seligman & Latz, Inc

Common

(Putnam

Webber,

(Paine,

$300,000

Inc.)

200,000

Co.)

$2,250,000

Bowmar Instrument Corp.—

Jackson & Curtis and Tucker, Anthony
L. Day) 105,000 shares

Common

(Johnson, Lane, Space Corp.; Francis I. du Pont & Co. and
The Robinson-Humphrey Co., Inc.) $1,089,125

Co.,

Hydromatics, Inc.
(Paine, Webber,

Oxford Chemical Corp

■

$150,000

Debentures
Co.)

Corp.

Common'

Common

Burnside

(Monday)

(Putnam &

Common

Inc.)

$600,000

—.

(Mortimer

Valley Sewerage Co
(Bache

Oak

Debentures
Wood,

Corp.

Debentures

Electronics Funding Corp

283,307

Co.)

and

$20,000,000

$600,000

—

„

Common

Corp.

Inc.)

Machines Corp..:

Dynex, Inc.
(Myron

Common
Corp.)

National Video Corp
fBache

Boston

Gundy & Co.,

December

^Common

30,000 shares

& Co.)

A. Lomasney

Business

165,000

First

(The

118,030 shares

Mohawk Business Machines Corp

(Myron A.

Life Insurance Co. of Florida
(Plymouth

$600,000

Alberta Municipal Financing Corp..
,

Common

Co.)

(Friday)

Common

Common
Barth

(Thursday)

$2,500,000

600,000

Corp

Mohawk

—-Common

Corp

Staats

page

$10,000,000

Chemical Corp
(Peter Morgan &

Debens.

Dilberts Leasing & Development Corp

(J.

Preferred

invited)

Bonds

New England Power Co

Leasing & Development Corp

Dutron

Broadway, Englewood, Colo.

(Monday)

Edens,

(Ira

South

Continued

.Common

Co.)

Office

capital.

(Friday)

BarChris Construction Corp

7 1

Co.

Underwriter—The First Boston Corp., New York.

(par $10).

working

Power

(par $2.50)
being offered for subscription by holders of outstanding
stock of record Nov. 6, 1959, on the basis of one new
share for each 10 shares then held; rights to expire on
Nov. 30. Price—$20 per share. Proceeds—For construc¬
tion.

Citadel

Central

Oct. 16 filed 66,490 shares of common stock

16.

Anelex

Hawthorne Financial

Proceeds—To sell¬

Charlotte, N. C.

$1,150,000

Inc.)

(William

Financial
Staats

80,000 shares

Corp

Co.;

Sullivan

Common

Boettcher

Co., Inc.)

Co.

and

Bosworth,

250,000 shares

(W.

World

Staaos

Publishing
(Joseph,

December 1

Chadbourn

Inc.)

>■

100,000

-Debentures

Co.)

'Bid*

invited"

York, Inc.

t60.000.000'

United

Control

Space Corp.)

Inc.)

United

•••

Common

$1,248,000

United

(Watling,

December 2

Co., Inc

(Bids

Lerchen

Co.)

145,000

EST)

a.m.

$30,000,000

Kidder,

29,534 shares

invited)

Common
Investor^ of Aperica, Inc.) $300,000
Common

Barney

11:30

a.m.

EST)

$15,000,000

(Eastman

Lomasney &

Co.)

$240,000

•

(Bids

Red

Fish

a.m.

(First Broad

Co.)

$3,000,000

Co.,

Inc.)

.Bonds

Securities

Investing

Corp.)

Co.)

S16.000.000

200.000

(R.

Farms,

50,000 warrants

•

Co.)

$300,000

Pierce,

Ford

Lehman

Common

Fenner & Smith Inc.)

1,000,000 shares

Stanley &

Pierce,

Co.

and

Bonds

Lazard

Freres

Co.,

Common

Inc
$150,000

Inc.)

Debentures

Inc
&

Co.)

$1,500,000

Fenner

Smith

Common

Inc.)

January 4

Co.)

$50,000,000

January

800,000

(Wednesday)

—Common

Craft, Inc.

Common
Goldman, 8ach* & Co.; Kuhn, Locb &
Merrill Lynch. Pierce, Fenner &
Inc.) 2,000,000 shares
and

Land Bank of France

$404,106.50

Investing

Corp.)

$150,000

(Monday)

General Public Utilities Corp
(Offering to stockholders—No underwriting)

Corp.;

Brothers

Fuller

(General

(Wednesday)

Smith

(Morgan

robin

Motor Co

(The First Bdston

Co.;

Lynch,

December

Common
67,500

—Common

Central,

Bruce

Industries,
(S.

(Merrill

Inc.—

Dickson

(Richard

Perrine

Common

Transitron Electronic Corp

Micronaire Electro Medical Products Corp.—Wts.
(General Investing Corp.)

Scott-Mattson

$30,000,000

EST)

Street Corp.)

Public Service Electric & Gas Co.—

and

Preferred

EST)

a.m.

Holman

December 9

Micronaire Electro Medical Products Corp.— Com.

Boat

(Merrill Lynch,

(Thursday)
Union

Union Securities &

Co.

370,000 shares

Neb.)

Electronics Development, Inc

--Debentures

Dillon,

Kirkpatrick-Pettis

Co.;

Telephone Co. of Pennsylvania—Debentures
(Bids

Bonds

(Tuesday)

Manufacturing Co.——

(Tuesday)

Debentures
$2,500,000

Co.)

The First Trust Co. of Lincoln,

Bell

Arkansas Power & Light Co

$2,000,000

Inc.)

Dynamics International Corp

(Aviation

Bonds
$7,500,000

Common

Arkansas Louisiana Gas Co...

Fall River Electric Light Co.
Common

Superior Manufacturing & Instrument Corp.—Com.

.(General

Behlen

$600,000

Fed-Mart Corp

(Indianapolis Bond & Share Corp., Kiser, Cohn & Shumaker,
Inc., and Walston & Co.) 88,000 shares

Dillon,

Noel &

(Smith

(R.

(Eastman

—Common
Co.)

Co.,

Alstyne,

December 15

Aircraft

Worcester County Electric Co

.Bonds

(Howard W.) Sams

December 3

Co.—

Johnny-On-the-Spot

Peabody & Co., Inc.)

Kletz

250,000 shares

-Debentures

Hunt

Instrument
(Van

$1,250,000

Universal Container Corp.—

(Bids

(Wednesday)

'(Offering to stockholders—underwritten

(D.

Co.)

Common

Corp

Debentures

\>.

December 8

—Common

Middlesex Water Co._

Inc

(Boenning

17,M0 shares

Corp

(Frank

Common

General Telephone Co. of California.
.

Marine,

(Michael

$2,500,000

Apparel, Inc

Timber

Turner

Notes

125,000.shares

Common

——

Noel & Co.)

(Frank P. Hunt & Co., Inc.)

$15,000,000

Marine, Inc

(400,000 shares).

Winkelman Bros.

Timber

$7,500,000

—

Co. and White, Weld & Co.)

(Bias

Turner

-Notes

(Boenning & Co.)

Debentures
Co.,

Bonos

Common

Corp

(Blyth

Vance-Sanders

(Van Alstyle,

and White, Weld & Co.)

(James), Inc

Eberstadt &

Nedick's Stores, Inc.—

$750,000

(James), Inc

Merry Brothers Brick & Tile Co.____.
Lane

Debentures

;
Co.)

Victoreen

"'(Diran, Norman & Co.) $300,000 »»>"'•

(Johnson.

(F.

Hogle

Eberstadt & Co.

Talcott

$2,000,000

Cracker Barrel Supermarkets, Inc..
.

Talcott
(F.

Inc.

Dickson

Mortgage Co.—
(J.

(Tuesday)

Consolidated Edison Co. of New
-■

Palomar

Common
Miller,

Gotham,
(R.

655,000 shares

Co.)

Mellen

Office—200 Petroleum Tower, Corpus
Chris^,, £<^as._ Underwriter—Blair & Go. Jnc.f New
York City.
;
>,

Chattanooga, Tenn. Office — 2417 North Davidson
St., Charlotte, N. C. Underwriter—R; S:-Dickson &l!Co.

Inc.;

Securities

Morris

stock (par $1).

common

$1,000,000

Faradyne Electronics Corp
(Netherlands

-Debentures

Producing Co.

40,000 shar.es ;Of

ing stockholders.

$400,000

Consolidated Diesel Electric Corp

Gas

Price:—To be related to the market.

$300,000

Manufacturing Co

•

—For general corporate
purposes, including working
'capital and the acquisition of "shares dfnthe') outstand¬
ing common stock of Davenport Hosiery Mills, Inc.,

Anthony Pools, Inc..

Common

...

new

To be supplied by amendment. Proceeds

—

(Marron,

—

(letter of notification) an undetermined number
of shares of common stock (par $1) to be offered for
subscription
by
stockholders
on
the
basis
of
one

Gotham, Inc. (12/1),
Sept. 28 filed $2,000,000 of 6% conv. subord. debentures,
due Oct. 1, 1974, with warrants to
purchase 200,000 shares
of common stock (par $1), to be offered for
subscription

(Monday)

Anodyne, Inc.
Conetta

•

Nov. 13

.Chadbourn

(Peter

331,635

Co.)

(12/14-18)

250,000 shares of class A common stock
Price—To be supplied by amendment. Pro¬

(par $2).

Stiles

—Common

filed

(Bids

November 30

Moshe

■

Casualty Co. of New York

including the repayment of outstanding bank loans in the

(Thursday)

Biederman Furniture Co

principally

company,

Dec. 7.

amount of $425,000, the provision of funds for the 1959-60
construction program, and for working capital. Office—
&

:33

The stock will be sold

Nov.

Price—$20

ISSUE

•.

remaining 2,000 shares were sold for the account of
selling stockholder.
Price—$11.50 per'share for the
rights offering. Proceeds—For general corporate purposes

Calumet share for each 4 shares of Flexonics preferred.

Nov.

November

fcMWi

The

share for each 2% shares of Flexonics common and one

NEW

Oct. 2 filed 48,080 shares common stock (par
$2), of which
46,080 shares are being offered for subscription by com¬
mon stockholders at the rate of one new
share for each

held. Price

;

mill

yiWu.fHJS

(2225)

Carwin Co. ;;t

Sept. 25 (letter of notification) 120,000 shares of class A
common

"I jcT

The Commercial and Financial Chronicle

w«?¥ A

,wtr

—Common
1,115,000 shares

(Tuesday)

Kansas Gas & Electric Co.—,.
(Bids'to

invited)

Louisiana Gas Service
(Bids

Bonds

to be

Common

200,000 shares

invited)

The Commercial and Financial Chronicle

(2226)

Continued, from page

ceeds—To pay

Western

Aug. 14 filed $1,000,000 of Plans for Investment in
Shares in American Industry, of which $500,000 was for

•

Electronics, Inc.
800,000 shares of common stock (par $1).
Price—$2.50 per share. Proceeds—For general corporate
purposes, inclding expansion, new product development,
and working capital. Office—135 S. La Salle Street, Chi¬
cago, 111.
Underwriter—David Johnson & Associates,
filed

SEC clearance).

shares of stock.
Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
• Conde Nast

Get.

501,863 shares of common stock (no par)
being offered for subscription by common stockholders
on the basis of one new share for each two shares held.

Rights expire Dec. 11. Price—$8 per share. Proceeds—
retire $3,500,000 bank loan incurred in connection
with the acquisition of Street & Smith Publications, Inc.
last August. Office—420 Lexington Avenue, New York
City.
Underwriter—None.
The registration statement

Under¬
-

Consolidated

Development Corp.
Aug. 28 filed 448,000 shares of common stock (par 20c),
of which 1198,000 shares are to be offered to holders of
the issuing company's 6% convertible debentures, and

to be offered to the underwriter, with

the

Price—To be

writer—To

remaining 150,000 shares, in addition to those shares
above not subscribed for by the debenture
and

licly offered. Price—For the shares to be offered to the
debenture holders, 75c per share, which is equal to theprice at which the debentures are convertible into com¬

for

mon

writer—None.

writer, $1 per share; for the shares to be offered to the
public, the price will be related to the current price of
the outstanding shares on the American Stock Exchange
at the time of the offering. Proceeds—For general cor¬
porate purposes. Office — Calle 23, No. 956, Vedado,
Havana, Cuba. Underwriter—H. Kook & Co., Inc., New
York.

by the

Address—Box

one.

Under¬

filed

$20,000,000 of first mortgage bonds, due
Proceeds—to repay short-term borrowings from

1989.

Beach, Fla.
Nov. 24 filed 140,000 shares of common stock
(par $1).
Price—$5 per share. Proceeds—To pay outstanding notes
and for working capital. Underwriter—Consolidated Se¬
curities Corp., of Pompano Beach, Fla., on a best efforts
basis.

Texas Utilities

Co., the parent company, which amounted
$12,500,000 on Sept. 30, with the balance to be used
general corporate purposes, including construction.
Underwriter—To be determined by competitive bidding.

Consolidated Diesel Electric Corp. (11/30-12/4)
Oct. 29 filed $1,000,000 of b% convex uDle au^urcunaied

debentures, due Nov. 1, 1975. Price—At 100% of prin¬
cipal amount. Proceeds—For working capital, and the
discharge of $187,535 of debts. Office—880 Canal Street,
Stamford, Conn. Underwriter—Van Alstyne, Noel & Co.,
York.

bidders: Halsey, Stuart & Co. Inc.; The First
Corp.; Salomon Bros. & Hutzler; Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Smith
Inc. (jointly); Eastman Dillon, Union Securities & Co.;
Blair & Co., Inc. and Baxter & Co. (jointly); Lehman
Boston

Brothers.

Bids—Expected to be received

noon

Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050 shares of common stock, of which
190,871 shares are to be offered to holders of outstanding
stock

of the record date

the basis of

for each four shares then held.

Proceeds—To finance

one new

Price—$1.50

per

government contracts, reduce ac- '

payable, and increase working capital.
Highway, Troy, Ohio.

Deluxe

Office-

Aluminum

Products,

100%

Consumers
3

Cooperative Association
$9,000,000 of 5Vz% 25-year subordinated

filed

certificates

indebtedness and 120,000 shares of pre¬
(par $25). Price—The certificates are to be
offered in units of $100; the
preferred stock is to be sold
at $25 per share. Proceeds—To be added to
general funds

ferred stock

of the association and be used for

retiring maturing

cer¬

tificates of indebtedness and for
capital expenditures.
Office—Kansas City, Mo.
Underwriter—None.

it Continental Reserve Co.
Nov. 13 (letter of notification) 300,000 shares of common
stock (par 30 cents).
Price—$1 per share. Proceeds—To
invest

the

common

stock

its proposed subsidiary,
Continental Reserve Life Insurance Co. Office—914-916
Kearns Bldg., Salt Lake
City, Utah. Underwriter—Co¬
lumbine Securities
Corp., Denver, Colo.

Copper we Id Steel Co. (12/14-18)
Nov. 16 filed $8,000,000 of convertible
subordinated de¬
bentures, due Dec. 1, 1979. The company has applied for
the listing of the debentures on the
New York Stock Ex¬
change. Price—To be supplied by amendment. Proceeds
—To

repay

added

short-term

general funds.

notes

with

the

balance

Underwriters—Dillon, Read &

Co., Inc., and Riter & Co., both of New York.

Copyma+ion, Inc.

(formerly Peck & Harvey Mfg.

Company)
Sept. 23
nion

(letter of notification)

stock

(par 50

cents).

100,000 shares of

Price—$3

per

share.

com-

Pro¬

are

common stock at $4 per share
up to and
1, 1962; thereafter at $8 per share Xip
to and including Nov. 1, 1965 and thereafter at
$12 per
share.
Price—At face; amount.. Proceeds—To reduce

notes

payable, to purchase facilities and equipment, and
working capital. Office—401 E. Boyd St., Norman,

Okla.

Underwriter—None.

Drexelbrook Associates

May

filed

$2,000,000 of partnership interests, to be
Price—$10,000 per unit. Proceeds—To

offered in units.
be

for

used

various

acquisitions." Office

—

Broad " &

Streets, Philadelphia, Pa. Underwriter—None.

Dutron

Corp. (12/7-8) - y.
118,030 shares of common stock (no par),
100,000 shares are to be offered for the account
of the issuing company and
18,030 shdres. representing
outstanding stock, to be offered for the account of the
present holders thereof. Price
To be supplied by
Nov.

filed

of which

—

amendment.

Proceeds—For

general corporate purposes,
including the purchase of equipment addition to work¬
ing capital, and the redemption of the preferred stock
of a subsidiary. Office—607 Irwin
St., San Rafael, Calif.
Underwriter—J. Barth & Co., New York.

Dyna-Therm
Oct.

filed
per

Chemical Corp.
(12/10)
200,000 shares of capital stock (par $1).
share. Proceeds—To purchase stock of

subsidiaries, for payment of loans, and for working cap¬
ital.
Office
Culver City, Calif.
Underwriter
Peter
Morgan & Co., New York City.
—

—

* Dynatronics, Inc.
6 (letter of notification) $105,000 of five

year

common stock. Price
$3.50 per share. Proceeds — For
working capital. Address—P. O. Box 2566, Orlando, Fla.
—

Underwriter—None.

Dynatronics, Inc.
6 (letter of notification) $105,000 of
five-year 6%

Nov.

subordinated debentures to be offered in denominations
of $500 each with warrants to purchase 143 shares of
stock.

common

working capital.

Price—$3.50 per share.
Proceeds—For
Office—P. O. Box 2566, Orlando, Fla.

Underwriter—None.

Inc.

Dynex,

(12/7-11)

Aug. 6 filed 120,000 shares of common stock/, (par 25
cents). Price—$5 per share. Proceeds—For general cor¬
porate purposes, including product research, the pur¬
of

equipment, and expansion. Office
123
Syosset, L. I., N. Y. Underwriter—Myron A.
Lomasney & Co., New York.
new

—

Eileen Way,

$75,000,000 of first and refunding mortgage
bonds, series Q, due Dec. 1, 1989.
Proceeds—For con¬

Nov.

including Nov.

chase

Inc.

struction expenditures.

Dec. 1.

10-year

share.

Oct. 15 filed $330,000 of convertible debentures, and 70,000 shares of common stock. Price—For the debentures,

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Morgan Stanley &
Co.; The First Boston Corp.
Bids—Expected to be received up to 11 a.m. (EST) on

Debentures

subordinated debentures to be offered in denominations
of $500 each with warrants to purchase 143 shares of

(12/1)

Underwriter—To be determined

$160,000

debentures.

Nov.

South Dixie

Oct. 30 filed

notification)

for

counts

Consolidated Edison Co. of New York, Inc.

subordinated

Dec. 14.

•

(letter

Price—$3

Power & Light Co.

Dallas

Nov.

Smith, Ark.

Fort

1013,

\-^;'YY3 V

Laboratories, Inc.

convertible into

stock is convertible into common stock on a basis of one

Probable

it Consolidated Development Corp., Pompano

New

Corp., Pass Christian, Miss.

it C. & W. Enterprises, Inc.
13 (letter of notification) 59.000 shares of 4% pre¬
(par $1). Price—$1.10 per share. Preferred

ferred stock

Chestnut

Nov.

underwriter, respectively,> to be pub¬

stock; for the shares to be offered to the under-

Inc.

underwriter on a "best efforts"
supplied by amendment. Proceeds—
for working capital. Under¬
be supplied by amendment.

publicly

basis.

general corporate purposes, including payment on
building and the financing of loans. Office—Orlando,
Underwriter—Lecn H. Sullivan, Inc., Philadelphia,
Pa., on a "best efforts" baisis, ./
"
* *
Y

for

May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to
stockholders. The remaining 858,387 shares will be of¬
fered

For

Oct.

and

For repayment of notes and

described

holders

credited to stated capital

Office—Elizabeth, NyJ.yy-V"

convertible

Co., New York.
Crusader Oil & Gas

investment.

Don Mott Associates,

Inc.
"
Oct. 27 filed 161,750 shares of class
B, non-voting, com¬
mon
stock (par $5). Price—$10 per share.'Proceeds—
'

Office—12 North Galena Avenue, Free-

Barrel Supermarkets,

Cracker

Dorsett

(12/1-2) Sept. 25 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2.50 per share. Proceeds—
For general corporate purposes.
Office—84-16 Astoria
Blvd., Queens, L. I., N. Y. Underwriter—Diran, Norman.
•

Goldman

Fla.

used

ceeds—For

Underwriter—None.

port, 111.

Conetta Manufacturing Co. (11/30)
Sept. 28 filed 100,000 shares of class A common stock (par
10c). Price—$4 per share. Proceeds—For working capital;
to prepay a bank note; and for machinery and equipment.

the

Co.

Proceeds—To

share.

•

are

paid-in surplus.

became effective Nov. 24.

100,000 shares

Sept. 29 filed 100,000 shares of common stock, to be of¬
fered to stockholders of record Sept. 15 on the basis of
one
share for each share then held.
Price—$4.50 per

Avenue, Stamford, Conn.
writer—Vermilye Bros., New York.

offered

Cornbelt Life

filed

Office—73 Sunnyside

}

publicly. Price—$4 per share. Proceeds—
To increase capital*'and surplus.
Undenvriter—None,
but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.
/
;

Publications, Inc.

Inc.,.

it Diversified Growth Stock Fund, Inc. y v
'J ?
Nov. 24 filed
(by amendment) an additional 3,000,000
shares of capital stock (par $1). Price—At market. Pro¬

Co., Freeport, III.
Sept. 29 filed 200,000 shares of common stock to be ,
offered for subscription by
common
stockholders of
record Sept. 15, 1S59, at the rate of four new shares
for each 10 shares then held. Unsubscribed shares may>

of stock and $100 of debentures and nine
Price—To be supplied by amendment.

Offering—Indefinite.

Communities,

Builders, Inc., with the balance to
working capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
;
be

Cornbelt Insurance

mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Get. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares

York.

Cantor

services, etc.
Office—494
S.
San
Vicente
Boulevard,< Los Angeles : 43,
Calif..
Underwriter—Edward Lewis Co., Inc., New York, N.- Y.
Offering—Expected in two to three weeks (subject to

"best efforts" basis.

D:Ibert's

Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and

—For engineering and technical costs, sales,
Business—Manufactures
swimming pools.

Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first

Changed—Company formerly known

Properties, Inc. Office—93-02 151st Street Jamaica, N.'Y.
Underwriter—Ira Haupt & Co., New York.
Diversified

Industries, Inc.
(letter of notification) 5,450 shares of common
stock (par $5) and 27,250 shares of preferred stock (par
$10) to be offered in units of five shares of preferred
and one share of common. Price—$55 per unit. Proceeds

Combined

on a

Avenue, Chicago 45, 111.
Underwriter—Sim¬
Co., (handling the books) and Plymouth Secu¬
York, N. Y. Offering—Expected *

Thursday, November 26, 1959

construct shopping centers and a super-market un¬
existing purchase contracts and for working capital.

der

Name

Coraloc

Oct.

1, 1960.

Inc., Indianapolis, Ind.,

and

bank loans and loans to stockholders and
working capital. Office—5642-50 North

day.

any

—

for

rities Corp., both of New

Single Payment Investment Plans and $500,000 for Sys¬
Investment Plans and Systematic Investment
Plans With Insurance. Office—15 East 40th Street, New
York.
Underwriter
None.
Offering — Expected some

Oct.

mons

tematic

time after Jan.

and

others

Columbian Financial Development Co.

of principal amount; for the stock,

$5 per share.
Proceeds—From 10,000 shares of the common stock, to
the present holders thereof; from the rest of the offer¬
ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.

★ Echo Bay Lead-Silver Mines, Inc.
Nov. 4 (letter of notification) 2,000,000
assessable

common

stock to

be offered

shares of non¬
for subscription

by stockholders of record May 12, 1959 with the right to
purchase one share for each share held. Price—At par
(10 cents per share). Proceeds

—
For mining expenses.
364, Coeur d'Alene, Idaho. Under¬

Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50),
price—$10 per share. Proceeds—For general corporate
purposes, including salaries, cars, promotion, inventory,
the establishment of branch offices, expenses incidental
to obtaining permission to do business in other states,
and the establishment of a contingency reserve.
Office
—1420 East 18th Avenue, Denver, Colo. Underwriter—

Corp.
Aug. 31 filed 160,000 shares of capital stock'(par 10c),
of which 100,000 shares are to be publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to

None.

distribute

Digitronics Corp.
Sept. 25 filed 65,877 shares of capital stock (par 10 cents)
being offered to the holders of outstanding shares of
such stock

shares held.

the basis

one

new

share for each

fivrt

The rights dates are Nov. 18 to

Dec. 3. Price
—$7.50 per share. Proceeds—For general corporate pur¬
poses.
Office — Albertson, L. I., N. Y. Underwriter —
Granbery, Marache & Co., New York City.
•

Dilberts

Leasing

500.000)

filed

$4,400,000

(subsequently reduced to

of 20-vear convertible debentures, due July

$2,15,

1979 and

1,056,000 shares (subsequently reduced to 600,000
shares) of common stock (par lc) to be offered in units
consisting of $50 principal amount of debentures and 12
shqpes of common stock. > Debentures are guaranteed as
to principal and interest by Dilbert's Quality Super¬
markets

unit.

Tnc.,

the

Proceeds

—

parent

company.

For repayment

Price—$51.20

writer—None,
E.

Box
o

automobile breakdown insurance policies on
thruways, parkways and highways in the amount of $25
of
25

such breakdown

gram.

insurance for the purchase

price of
public relations and publicity pro¬
Office—Hotel Troy Building, Troy, New York.

cents,

and

for

Underwriter—John

Boland

Co..

Tnc.

New

York.

Offering—Expected in two to three weeks' time (subject
to SEC approval).
ESA

Mutual

Fund, Inc.

June 29 filed 2,000.000 shares of capital stock. Price—To
be supplied by amendment.
Proceeds—For investment.

Development Corp.

(12/7-11)
June

Address—P.

per

of notes; to develop

Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc.,
D.

Office—1028

Washington,
W., Wash¬

Connecticut Avenue, N.

ington, D. C.
•

Ele^+ronics Development, Inc. (12/15)
Sept. 25 filed 115.459 shares of common stock (par 10c).
Price—$3.50 per share. Proceeds—For plant erection, ad¬
-

vertising,
capital.

research
and
development,
a^d
working
Office — Gill and West College Streets, State

™.

Volume

College, Pa. Underwriter—First Broad Street. Corp., 50
St., New York.
: -

Broad

.Electronics Funding Corp.

(12/7-11)

Oct. 19 (letter of notification) 75,000 shares of common
stock ("par 10 cents).
Price—$2 per share. Proceeds—
For

For

Underwriter—None.

Garden Land
9 filed

Darius

land

Equity Annuity Life Insurance Co*
April 2\ Jiled $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a" year for annual premium
contracts and no less than $1,500 for single premium
contracts!. Proceeds—For investment, etc.
Office—2480
16th Street, N. W, Washington, D. C.
Underwriter—
*

short-term bank loans which amounted to

$2,800,000 at
1959 and the balance will be used for construc¬
purposes. Underwriters—To foe determined by com¬
petitive bidding. Probable bidders: Stone & Webster Se¬
curities Corp.; Kidder, Peabody & Co, and White, Weld
& Co. (jointly); Eastman Dillon, Union Securities & Co
Bids—Expected to be received up to 11 a.m. (EST) on
Dec. 8, 1959 at the offices of the company, 49 Federal
Street, 8th Floor, Boston, Mass.
Oct. 19,

tion

•

Corp. (11/30)
Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to foe publicly offered.
Price—$5 per share.
Proceeds—For general corporate
Faradyne

Electronics

including plant expansion, improvement and
equipments Office — 744 Broad St., Newark, N. J.
Underwriters
Netherlands Securities Co.,* Inc. (han¬
dling the books) and Herbert Young & Co., Inc. (jointly):
Morris Cohon & Co.; Schrijver & Co.; Richard Bruce &
Co., Inc., all of New York.
purposes,

—

•

Fastline.

Nov. 6
stock

Inc.

Co., Ltd.

balance to be -added

the

(12/7-11)

200,000 shares of common stock (par $1).
supplied by amendment. Proceeds — For
conversion and improvement in California, with
To be

working capital. Office-—
17315 Sunset Boulevard, Pacific Palisades,.Calif. UnderWriter-^HiU, Darlington & Co., New York City.
Gas

Hills

Uranium Co.

Oct. 28 filed

6,511,762 shares of common stock, of which
3,990,161 are to be offered for sale. The remaining 2,-'
521,601 shares are Owned or underlie options owned by
officers attd/or

'■

Fafl River Electric Light Co. (12/8)
Oct. 22 filed 30,000 shares of preferred stock (par $100).
Proceeds—To be used, for prepayment of the company's

(12/7-11)

(letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—

general corporate purposes. Office—8 Washington
Place, New York, N. Y. Underwriter — Mortimer B.
Burnside & Co., Inc., New York, N. Y.
For

Fed-Mart Corp.

directors, affiliates, and associates of the
issuing company: Of the shares to be sold, 415,000 shares
to be offered to holders of the outstanding common
at the rate of one new share for each 20 shares held;
500,000 shares are to be offered in exchange for proper¬
ties, and services; 326,883 shares are to be offered to cer¬
tain holders of the company's convertible promissory
notes; and 2,748,278 shares are'to be offered for the ac¬
count of selling stockholders, of which number 655,500
shares represent holdings of management officials and
affiliated persons. Priee—To be supplied by amendment.

are

Proceeds—For

general corporate purposes, including the

indebtedness.
Office—604 South
Street, Laramie, Wyo. Underwriter—None.
repayment

• General

Coil Products Corp.

Oct. 29 {letter Of

notification) 99,000 shares of

and machinery

and

common

research and

develop¬
ment. Office—147-12 Liberty Ave., Jamaica, N. Y. Un¬
derwriter—-A. T. Brad & Co., New York, N. Y. Offering
—Expected in two weeks (subject to SEC clearance).
General Finance Corp.

Sept. 11 filed 150,000 shares of common stock. Price—$3
per share. Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment
and supplies.
Off iee — Santurce, Puerto Rico.
Under¬
writer—Caribbean Securities Co., Inc., Avenida Condado
609, Santurce, Puerto Rico.

^ General Public Utilities Corp. (1/4)
1,115,000 additional shares of common stock
(par $2.50) to be offered to common stockholders of
record Dec. 30, 1959, on the basis of one new share for
each 20 shares so held; rights to expire on Jan. 19, 1960.

Price—To be supplied by amendment. Proceeds—To pay
Short-term bank loans, and the balance will be added

to the general

Federation, Inc. (12/14-18)
235,000 shares of capital stock ($1 par).
Price—To be supplied by amendment. Proceeds—Mostly
for the repayment of short-term notes, with the balance
for working capital.
Office—5150 Wilshire Boulevard,
Los Angeles, Calif.
Underwriter—Kidder, Peabody &
Co., New York.
Financial

Nov.

filed

Financial Industrial Income

Fund, Inc.
shares of common capital stock

July 22 filed 1,000,000
Price—At market.

Proceeds—For

investment.

Office—

950

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other NorthernOlive companies, numbered "second" through "eighth."
Price—$10,084 to $10,698 per unit. Proceeds—To purchase

land in Arizona. Office—1802 North Central

Ave., Phoe¬
nix, Ariz. Underwriter—O'Malley Securities Co.. Phoe¬
Statement effective Oct. 9.

First United

Sept.

filed

Life Insurance Co.

158,236 shares

common

Nov. 5 filed

funds of the

company.

Underwriter—None.

YeEephone Co. of Calif. (12/2)
$30,000,000 of first mortgage bonds, series M,

due Dec. 1, 1989.
Proceeds—For construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders; Halsey, Stuart & Co., Inc.; Paine,

Webber, Jackson & Curtis, and Stone & Webster Secu¬
rities Corp. (jointly); The First Boston Corp. and Equi¬
table Securities Corp. (jointly); White, Weld & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
received up to 11 a.m. (EDT) on Dec. 2.
Gold

Medal

Packing Corp.
shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 4UU,U00 will be sold for the account of the
company; 110^000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share. Proceeds—For repayment of debt; purchase of
equipment and facilities and other general corporate
purposes. Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change — Formerly Eastern Packing Corp.
June 18 filed 572,500

First Northern-Olive Investment Co.

nix.

Nov. 24 filed

General

stock,

offered to common shareholders of record Oct. 15 at the

rate

one

new

rights to expire
For

share for each four shares

on or

company reserves

Broadway, Gary- Ind.
Florida Tile

then held;
Price—$5 per share.
and expansion. Office — 475-79
Underwriter—None.

about Dec. 2.

Industries, inc.

Nov. 12 filed

$1).

89,285 shares of class A common stock {par
Price—To be supplied by amendment. Proceeds—

It is

expected that about $437,500 will be used for addi¬

tional working capital and/or general corporate purposes,
of which $250,000 may be expended for additional facil¬

ities, and that aboui $87,500 will be used to retire shortterm

bank

loans.

Office—Lakeland, Fla. Underwriter
—Johnson, Lane, Space Corp., Atlanta, Ga.

Gold Medal Studios, inc.
Sept. 18 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For general cor¬
porate purposes, including the purchase of additional
studio equipment, Investing in properties in the enter¬
tainment field, and the provision of funds for a down
payment on another building or buildings. Office—807
E. 175th Street, New York, N. Y.
Underwriter—Arnold
Malkan & Co., Inc., New York.
Granco -Products,
Oct. 21

(12/9)

Nov. 19 filed 2,000,000 shares of common stock
(par $5).
Price—To be supplied by amendment. Proceeds—To sell¬

ing stockholder (Ford Foundation). Underwriters—Blyth
& Co., Inc., The First Boston Corp., Goldman, Sachs &
Co., Kuhn, Loeb & Co., Lehman Brothers arid Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &

(letter of notification) 42,860 warrants and 60,000
common stock
(par 50 cents). The stock is

underlying the warrants, and the purpose of the filing
to permit the warrant holders to exercise their war¬
rants and buy the underlying stock at $2.50 per share
during the life of the warrant. The expiration date of
the warrant is Feb. 25, 1961. The price of the warrant
is at the market. Proceeds—In the first instance, to the

Co., all of New York.

holders; if they convert, Granco's treasury will

receive $2.50 per share. Office—36-17 20th Ave., Long
Island City, N. Y. Underwriter—John R. Boland & Co.,

Inc., New York City.

Formula

409, Inc.
300,000 shares of common stock (no par).
Price—$1.50 per share. Proceeds—For advertising, re¬
duction of indebtedness/bottling equipment,
payment of
$44,000 for acquisition of formula 409, a liquid degreaser,
and office eouipment.
Office—10 Central Street, West
Springfield, Mass. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass.
Oct. 29 filed

Great Lakes Bowling Corp.
Aug. 31 filed 120,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes, including the development
of bowling lanes,
bare
and
restaurants on various

troit. Mich.

Office—6336 Woodward Ave., De¬
Underwriter—Straus, Blosser & McDowell,

Chicago, 111.

Offering—Expected sometime after Jan. 1,
f

common

Great Northern Life Insurance Co.

stoek

(par 10 cents). Price;—$2 per share. Pro°eeds—
general corporate purposes. Underwriter — Summit
Securities. Inc., New York.
Offering—Expected in* about

Oct. 28 (letter of notification)

For

Stock

two weeks.

each 2Y2 shares held. Warrants are to expire

Great Western Financial Corp.
19 filed $9,998,800 of convertible subordinated de¬

bentures, due Dec. 1, 1974, being offered for subscrip¬
tion by common stockholders of record Nov.
20, 1959
(with a 14 day standby), on the basis of one new de¬
benture for each 22 shares then held; rights to expire
on or

about Dec. 4.

Price—At 100%. Proceeds—For gen¬

eral

corporate purposes, including the reduction Of in¬
debtedness. Office—4401 Crenshaw Boulevard, Los Ah*
geles, Calif. Underwriter—Lehman Brothers, New York,
Greater Washington Industrial Investments,
4 filed 20,500 shares of common stock (par

lids.

Nov.

Price—$8.50

share. Proceeds

per

$1);

For investments hx

—

small businesses. Office—1625 Eye

St., N. W, Washing¬

ton, D. C. Underwriter—None.

Green River Production Corp.
Oct. 15 (letter of notification) 200,000 shares of common
stock (par 50 cents). Price—$1.50 per share. Proceeds^
For expenses for exploring for oil
Sixth Ave., South; Nashville, Tenn.
cent Securities

andgas. Office—212

Underwriter—Ores¬

Co., Inc., Bowling Green, Ky.

Growth Fund of
Feb.

America, Inc.
250,000 shares of common stock (par 10
Price—At market. Proceeds—For investment.

filed

Office —1825
Investment

Connecticut

Avenue, Washington, D. C.

Advisor—Investment

Advisory
Service^
Washington, D. C. Underwriter—Investment Manage¬
Associates, Inc., Washington; D. C. The statement
became effective July 24.
1

ment

Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below.

/]■

Gulf & Western Corp. (12/14-18)
Nov. 5 filed $1,500,000 of 6% convertible

subordinated
debentures, due Nov. 15, 1974. Price—To be supplied by
amendment. Proceeds—Initially for working capital, and,
required, to finance

counts receivable

increased inventories

and

acr

behalf of subsidiaries. Office—4615

Empire State Bldg., New York/Underwriter—Ira Haupt
& Co., New York City.
<
•

Harman-Kardon, Inc.

Oct. 22 filed $600,U00 of 6%% subordinated convertible
debentures due December 1969, and 196,400 shares of
stock

common

(par 25 cents), of which the debentures
issuing company

to be offered for the account of the

are

and

80,000 shares of the common stock are to be offered
President, Sidney Harman. Of the
116,400 common shares remaining, 20,000 are being regis¬
tered under a restricted stock option plan, 4.000 are
being reserved for key employees pursuant to stock
options, and 92,400 are being reserved for debenture

for the account of its

conversion. Proceeds—For reduction of bank loans and

general corporate purposes including new plant and
equipment.
Office—Westbury, L. I., N. Y. Underwriter
—Milton D. Blauner &

Co., Inc., New York City.
offering is expected in December.

This
/

Harnischfeger Corp.
Aug. 28 filed 200,000 shares of common stock (par $10).
Price—To be related to the market price of outstanding
shares on the American Stock Exchange at the time of
the offering.
Proceeds — In part to repay outstanding
unsecured short-term bank loans, expected to approxi¬
mate $4,000,000, with the balance to be used for general
corporate purposes. Office — 4400 W. National Ave.,

Milwaukee, Wis.
New

York.

market

Underwriter—The First Boston Corp.,
postpone<f\due to

Offering—Indefinitely

conditions.

(H. M.)

Harper Co.
•
»
100,000 shares of common stock (par $1),
of which 60,000 shares are being offered for the account
of the issuing company, and 40,000 shares are being of¬
fered for the accounts of the present holders thereof.
Nov. 6 filed

Price—To

be supplied by amendment. Proceeds—For
general corporate purposes. Office — Morton Grove, 111.
Underwriter—Blunt Ellis & Simmons, Chicago, 111. Of¬
fering—Expected in mid-December.

Hawthorne Financial Corp.
Oct.

filed

165,000

(11/30-12/3)
outstanding

common

(par $1).
Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Office — 301 South
Hawthorne Blvd.,
Hawthorne, Calif.
UnderwriterWilliam R. Staats &

99,236 shares of common

(par $1) to be offered for subscription by stock¬
of record, on the basis of one new share for

holders

during No¬

Co., Los Angeles, Calif.

Tlr Heli-Coil Corp.
157,000 shares of common stock

Nov. 18 filed

(without

par value) to be offered to holders of outstanding shared
of the capital stock (par $10) of Grip Nut Corp.
The

holders

95.7%

stock entered into

of
an

the outstanding Grip

Nut capital

agreement with Heli-Coil on

Oct.

21,1959, to exchange their holdings of 103,055 shares
of Grip Nut stock for 150,850 shares of Heli-Coil's com¬
mon stock.
Heli-Coil is not obligated to accept less than
Oct.

100% of the Grip Nut shares, but at its option may do so
a lesser degree, though not less than 80%.
It wiu

then issue
from

proportionately reduced
(Heli-Coil) has registered.

number of shares

the

157,500 which it
Office—Danbury, Conn.

Michigan properties.

1960.

Fredonia Pickle

Co., Dunkirk, N. Y*
July 29 (letter of notification) 150,000 shares of

warrant

•

Oct.

stock

Inc.

was

• Foi*d Motor Co., Dearborn, Mich.

price. Price—$3 per share. Proceeds—
expansion.
Office —119 W. Rudisill Blvd., Fott
Wayne, Ind, Underwriter — Northwestern Investments,
Inc., 502 Gettle Bldg., Ft. Wayne, Ind.

cents).

stock (par 10 Cents). Price—$3 per share. Proceeds—For
automation of operations; working capital; additional

equipment

counter market

18th

(12/8)
$3,000,000 of 6% subordinated debentures,
due Dec.
1, 1979, convertible through Nov. 30, 1969.
Price—To be supplied by amendment.
Proceeds—For
intermediate- and long-term capital requirements.
Of¬
fice—8001 Othello Street, San Diego, Calif. Underwriter
—Eastman Dillon, Union Securities & Co., New York.
<

Nov. 6 filed

Minn.

—

Inc., 90 Broad Street, New York 4, N.-Y. Under¬
writer—Dariuslnc., New York/N. Y.
*

(2227)

vember, 1959. The unsubscribed shares are to be offered
to the public through the underwriter at not less than
the subscribed price nor more than the highest over-the-

Price

»V

WW/MUi.-

* Fuller (H. B.) Co.
17/(letter of 'notification) 4,585 shares of preferred
stock.
Price—At par ($10 per share).
Proceeds—For
working capital. Office—255 Eagle Street, St. Paul 2,

Nov.

■

'Nov..

general Corporate purposes. Business — Sales and
leaseback of special and staple machinery and equipment
for the
American
electronics industry.
Office —c/o

None."*

The Commercial and Financial Chronicle

Number 5902

190

Hickerson Bros. Truck Co.f Inc.
(letter of notification) 285.000 shares of com¬
stock. Price—At par ($1 per share). Proceeds—Tj
existing liabilities: for additional equipment; and
for working capital.
Office—East Tenth Street, P. O.
March 11
mon

pay

Box

Great

Bend.

Kan

Underwriter—Birkenmay*

Co, Denver, Colo. Offering—Expected

shortly.

Continued

psffc

The Commercial and Financial Chronicle

(2223)

Investors

Continued from page 35

Co.

filed

17, 1959; rights to expire on Dec. 3.
supplied by amendment. Proceeds—For
construction, including the payment of short-term loans
of

record

working capital. Office—1300 S. Blvd., Charlotte, N. C,

writer—None.

ditionally

class

76,642 shares of common stock (par $15)
being offered for subscription by common stockholders
on the basis of one new share for each five shares held
Oct.

Nov.

Price—To

incurred for

this

Oil

Derby, Conn.
Underwriters — Allen & Co., New Yorkj
and Bacon, Whipple & Co.. Chicago. 111.
-

Underwriter

it H. W. I. Building Corp.
17 (letter of notification) $300,000 of 6% series D
first
mortgage
bonds maturing
serially from 1960
through 1979 to be offered in denominations of $500.
Price—At par.
Proceeds—For construction of a ware¬
house and working capital.
Address — P. O. Box 868,
Nelson Road, Fort Wayne, Ind. Underwriter—None.
.

Nov.

Laird

—

Rumball, Regina, Sask., Can

Israel

Development Corp.
Sept. 22 filed 200,000 shares of common stock (par $25).
Price—$27.50 per share, payable in cash or State of Israel
Independence Issue or Development Issue bonds.
Pro¬
ceeds—For general corporate purposes. Office—17 E. 71st

Street, New York City. ^Underwriter—None.
J E Plastics

Hycon Manufacturing Co.
Aug. 28 filed 126,316 shares of common stock, which
were issued to Avco Corp. on Dec. 8, 1958, at $2,375 per
shares, and which will now be publicly offered by Avco.
Price—To be related to the prices prevailing in the
over-the-counter market at the time, or times, the stock
is sold. Office—1030 South Arroyo Parkway, Pasadena,
Cailf. Underwriters—The offering will be made through

Nov.

filed

common

stock

of which 42.500 shares

are

of the present holders

thereof and 30,000

(par 100),

to be offered for the account

shares repre¬
sent shares issuable by the company upon the exercise
of a like number of warrants to
buy the common stock
at $2.50 per share from 11/1/59 to 11/1/61. Price—The
public offering price will be supplied by amendment.

registered brokers and dealers who are NASD members.

Proceeds—For

Hydromatics, Inc. (12/7-11)
s
Oct. 20 filed 105,000 shares of common stock (par $1), of

Jocelyn-Varn 1960 Oil Associates
Sept. 28 filed 100 units of oil and gas exploration agree¬
ments.
Price—$20,000 per unit. Proceeds—For locating,
developing, and administering oil and gas producing
properties.
Office—310 KFH Building, Wichita, Kan.
Underwriter—None.

Johnny-On-Tfre-Spot Central, Inc. (12/15)
(letter of notification), 30,000 shares of common
stock (par 25 cents). Price—$5 per share. Proceeds—For

both of New York.

Oct. 28

I C Inc.

June 29 filed 600,000

shares of common stock (par $1)
Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and enfranchising of bottlers, the local and national pro¬
motion and advertising
of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur-;
vis & Co. and Amos C. Sudler & Co., both of Denver.

general corporate purposes. Office

830 Central Ave.,
Scarsdale, N. Y. Underwriter—Richard Bruce & Co., Inc.,
New

12 filed

These

were

stock (par $1).
issued to holders of the outstanding

£•

•
,

Industrial
June

Inland Western

Loan

June 9.

Finance Corp.

Everett

City.

Parks

Offering

mentarily.

•

&
—

Inter-Island Resorts, Ltd.
Sept. 10 filed 99,000 shares of common stock (par $3) be¬
ing offered first to stockholders on the basis of one newshare for each four shares held of record

rights to expire

Nov. 30. Price—$5.50

ceeds—For construction of
on

new

Oct.

per

10, 1959;
share. Pro¬

hotel at Kalapaki Bay,

the Island of Kauai. Office—305 Royal Hawaiian

Ave.,

Honolulu, Hawaii. Underwriter—None.
International

Dec

Bank,

D. C.
(series B. $500,000, two-

3% per unit: series C. $1,000,000. four-year 4% p«
unit; and series D. $3,500,000, 6-year, 5% per unit). Prli*

year,

—100%

of principal amount
Proceeds
For workinj
capital. Underwriter—Johnston Lemon & Co., Wash¬
ington. D C Offering—Indefinitely postponed
—

Investment Trust for the Federal Bar
Bldg.

Aug. 14 filed 500 Beneficial Trust Certificates in the
Trust. Price—$2,600 per certificate. Proceeds—To
supply,
the cash necessary to purchase the land at 1809-15 H
St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D. C., and Swesnick & Blum
Securities

Corp.

...

;

•

external
to

are

payment

of France.

The

Co.

and

Lazard

Insurance Co. of Florida

loan

uncon¬

principal

and

bonds will not

Freres

Co.,

(11/30-12/4)

Sept. 28 filed 203,476 shares of common stock (par
$1).
Price—$4.50 per share. Proceeds—For expansion. Office
Bond

St., Miami, Fla. Underwriter—Plymouth
Corp., Miami.

& Share

^Liquid Veneer Corp.
(letter of notification) 150,000 shares of common
stock (par 10 cents). Price —$2
per share. Proceeds —
Nov. 16

For

general corporate purposes.
Office — 211 Ellicott
Street, Buffalo, N. Y. Underwriter—B. D. McCormack
Securities
M.

Corp., New York, N. Y.

& S.

Oils Ltd.

May If filed 390,000 shares of common stock. Price—60
cents per share.
Proceeds — For exploration, develop¬
ment and acquisitions.
Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land

Securities Ltd., Regina,
Saskatchewan, Canada.
Magna-Bond, Inc.
Nov. 9 (letter of
notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For

general

corporate

Street, Camden, N. J.
fied

filed

(EST)

a.m.

Jan. 19.

331,836

common

stock,

Price—Of

shares,

30,717 shares, $115 each; and of
each. Proceeds—To selling stock¬
Underwriter—None.

$116

Office—Anchorage, Ky.
(W. S.)

1960 Co.

500,000 shares of class A common stock
Aug. 24 to 150,000 shares of 61/2% cumu¬
lative convertible preferred
stock, par $10), and 150,000

class A

common

$3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.

it King's Grant Inn, Inc.
9 (letter of notification) 30,000 shares of common
(par $1). Price—$10 per share. Proceeds—To pay
off loans to banks,
constructions, purchase of a farm
inn and working capital. Address—R. F. D. No.
3, Laconia, N. H. Underwriter—Osborne, Clark & Van Buren,
Inc., New York, N. Y.
j

Nov.

stock

•
Kittanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common stock, being of¬
fered by subscription to holders of
outstanding common
on

the basis of

approximately 0.212 new shares for
each
share
held on
Nov.
14, 1959; rights to expire
on
Dec. 15, 1959.
Price—$25 per share. Proceeds—In

bank loan in the amount of $450,000 rep¬
resenting funds acquired for general modernization, im-»
provement, and expansion. Underwriter—None.
a

it Lake Aircraft Corp., Sanford, Me.
Nov. 20 filed 135,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To repay
bank indebtedness, for
remaining payment on purchase
by

the company of certain assets of Colonial Aircraft
Corp., and for other cornorate purposes. Underwriter—.
Mann &

Gould, Salem, Mass.

$1, with

common
common

purchase

one

warrant

(letter

trative and supervisory employees of the
company in
units of two shares of clas" A and three shares of class B

stock.

Price—$13.25

entitling the registered holder

share of such

common stock at an initial
per share. Price—For preferred, at par; and
A, $10.10 per share. Proceeds—$291,099 is to
be expended during the period
ending Aug. 31, 1960 for
mortgage payments and releases; $465,000 will be paid

price

of $11

Class

transfers

by members of the Magnuson family
subsidiaries and properties to the

company; $106,000 will
and purchase contracts

be used to close certain options
covering lands in the MelbourneCape Canaveral area; the balance will be added to the

general

funds

the

and

company

used

for

general

Office—20 S. E. 3rd Ave.,
Miami,
Underwriter—Blair & Co. Inc., New York. Offering
—Expected this Fall.
purposes.

Manchester Insurance
Management & investment

Corp.
(letter of notification) 100,000 shares of common
stock (par $1) to be
offered for subscription to stock¬
Oct. 22

holders at the rate of

one

and the remainder to the

share for each two shares

held,

public.

Price—To stockholders,
$2.70 per share; to the public, $3 per share. Proceeds—
To pay a note, purchase land and to
construct a build¬
ing. Office—9929 Manchester Road, St. Louis 22, Mo.
Underwriter—None.
•

Mayfair Markets
1" filed 301,177 shares of

Oct.

common

stock

be offered

(par $1), to

to holders of such stock on the basis of one
share for each five shares held Nov. 13.
Rights are
scheduled to expire in February.

Price—$10

per

share.

Proceeds—For general corporate
purposes, including ex¬
pansion and working capital. Office—4383 Bandini
Blvd.,
Los

Angeles, Calif. Underwriter—None.

Merry Brothers Brick & Tile Co. (12/1)
Oct. 26 filed 160,000 shares of common stock
(par $2.50).
Price
$7.80 per share. Proceeds
For new production
—

—

facilities.

Office—415

Masonic

Bldg., Augusta, Ga. Un¬
derwriter—Johnson, Lane, Space Corp., Atlanta, Ga.
•

Micronaire Electro Medical Products Corp.

(12/3-4)
Oct.

filed

200,000 shares of common stock (par 10
cents) and 50,000 one-year warrants for the purchase of
such stock at $3 per share, to be offered in units of 100
shares of

common stock and 25 warrants.
Price—$275 per
Proceeds—For general corporate
purposes, includ¬
the discharge of indebtedness, the expansion of

unit.

ing
sales

efforts, and for working capital. Office—79 Madison

Avenue, New York City. Underwriter—General Invest¬
ing Corp., New York.
Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250.000 shares of
common
stock (par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5.000 com¬
shares.

mon

An additional

138.000 shares may be issued
company's restricted stock option
per unit.
Proceeds—To purchase

in connection with the

plan.
ing

notification) 1.400 shares of class A
common stock (par
$5) and 2,100 shares of class B com¬
mon stock (par $5) to be offered to
executives, adminis¬

common

par

Price—$10 500

machinery, equipment and other fixed assets, for operat¬

it Lance, Inc.
Nov.

stock,

stock purchase warrants. Each share of class A

new

"June 8 filed

stock

Avenue, N. W..

Fla.

shares.

6th

corporate

filed

(amended

ceived

to 11

Office—1718

Connecticut

1028

Washington 6, D. C.

notes acquired

purposes.

Underwriter—American Diversi¬

Securities, Inc.,

the

part to repay

Washington,

29 filed $5,000,000 of notes

Life

Kilroy

and

corporate purposes. Underwriter—To be deter¬

holders.

Co., Inc., 52
Expected mo¬

York

New

51,000

capital in order to enable company to exercise options
motels and/or parcels of land. Office—Martinsville,
G.

Stanley

both

competitive bidding. Probable bidders: Merrill
Lynch, Pierce, Fenner & Smith Inc., Kidder, Peabodjr &
Co. and White, Weld & Co. (jointly); Eastman Dillon,
Union Securities & Co., Glore, Forgan & Co. and Gold¬
man
Sachs &; Co. /(jointly). Bids—Expected to be re¬

000

—

(no par).

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares of common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,-

Motels, Ltd.
133,000 shares of common stock (par 10c).
Price—$3 per share. Proceeds—in i.t
o

New York

ers—Morgan

for

supplied by amendment.
Proceeds—For
general corporate purposes.
Office—165 Luckie Street,
Atlanta, Ga.
Underwriter — The Robinson - Humphrey
Co., Inc., Atlanta.

filed

Underwriter

bonas

of the Republic of France. Application will be
made to
list these bonds on the New York
Exchange. Underwrit¬

Wagenseller & Durst, Inc., Lcs Angeles, Calif.,
Jones, Cosgrove & Miller, Pasadena, Calif.

Price—To

Intercontinental

Broadway,

Office—842

Kennesaw Life & Accident Insurance Co.

Corp.
Oct. 13 filed 85,000 shares of common stock (par 5c).
Price—$4 per share. Proceeds — For general corporate
purposes, including the redemption of outstanding pre¬
ferred stock and new plant • equipment. Office—Westbury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield, Mass.

Va.

Proceeds—To

offered to the holders of the outstanding common stock
on the basis of one new share for each four shares held.

Integrand

guaranteed

The

supplied by amendment. Proceeds—The net dollar
proceeds will be added to the foreign exchange reserves

Inc. and

Nov.

Sept. 24 filed $1,000,000 of 6% capital debentures. Price
—To
be supplied
by amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life
Insurance Co.; to furnish operating capital for subsidi¬
aries; and to establish new subsidiaries or branches of
already existing ones. Office—10202 North 19th Ave.,
Underwriter—The underwriters, if any,
Phoenix, Ariz.
will be named by amendment.

Oct.

share.

mined by

6% debentures ($1,000 denomination) and
$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬
nue; Portland 4
Ore
Underwriter—May & Co., Port¬
was

1979.

To be

stock carries

for other

convertible

land, Ore. Clearance date

per

it Kansas Gas & Electric Co. (1/19)
200,000 shares of common stock

subordinated

$200,000

Price—$4.50

Proceeds—Fcr the construction of electric facilities

notification)

(12/9)
of

prior to Dec. 15, 1969 except by operation
of the sinking
fund, which will begin in 1964 and is
designed to retire the entire issue by maturity. Price—

June

65,000 shares of common

Nov. 20 filed

Leasing Corp.

(letter

15,

guaranteed

California" Street, Pasadena, Calif.
Underwriters —
Evans MacCormack & Co., Bingham, Walter & Hurry,

common

stock of General

writer—None.

(par $1).

and

Ceramics, pursuant to the terms of the
merger of Ceramics into GeneraLwhich became effective
Nov. 16. Office—405 Elm Slrdft;'Valpariso, Ind. Under-

—

retire loans and unsecured installment notes.

(formerly Indiana Steel

208,270 shares of

France

$50,000,000

Dec.

Magnuson Properties, Inc.

it Jurgensen's Co.
(letter of notification)

stock

Products Co.)

Nov.

filed

due

be redeemable

York, N. Y.

Nov. 16

Colo.

Corp.

Bank of

80,000 shares are to be offered for the account of
company, and 25,000 shares are to be offered for the
accounts of the present holders thereof. Price — To be
supplied by amendment. Proceeds—For working capital.
Office—Livingston, N. J. Underwriters—Paine, Webber,
Jackson & Curtis, and Tucker, Anthony & R. L. Day,

General

Land

bonds

working capital. Office—Yonkers, N. Y.

Underwriter—None.

which

Indiana

•

Nov.

—2546 S. W. 8th

Manufacturing Co,

72,500 shares of

Underwriter—None.

interest by the Republic

Exploration, Ltd.

April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can

Office—33 Elizabeth Street,

purpose.

Irando

Thursday, November 26, 1959

Counsel, Inc.
(letter of notification) 300,000 shares of common
stock
(non-voting).
Price—At par (one cent
per share).
Proceeds—For general corporate purposes.
Office—20 Exchange Place, New York 5, N. Y. Under¬

Nov. 2

Public Service

Housatonic

per

share.

Proceeds—For

expenses,

Office—4061

—None.
Los

and

Angeles,

(par $1).

remainder

filed

Adv;«ser—Hill

Calif.

Mid-America
Nov.

the

for

working

Transport St.. Palo Alto. Calif

Financial

Statement

"Rirhardc

effective

capital.

Underwriter
&

Oct.

To., Inc.,
26.

Minerals, Inc.

400,000

Price—$5

shares
per

share.

class

common

stock

Proceeds—For general

JAWiUtf

*L1J

Volume 190

Number 5902

June

capital. Office—500 Mid-America Bank Building, Okla¬
homa City, Okla./ Underwriter—Nolle.

cents)

Oct.

30 filed

fered

29,534

holders

shares of

the

share for

each

held, with

three

common

outstanding

preferred

14-day standby.

stock, to be of¬
preferred and/or

the basis of

common

one

new

then

Price—To be supplied by

amendment.
Proceeds — To repay bank loans incurred
for construction purposes, with the balance to be used
for

general

corporate

Office —|52

Main St.,
Underwriter—Kidder, Peabody & Co.,

Woodbridge, N. J.

purposes.

'L(2229)

Microwave

Corp.

and

filed

50,000 shares of common stock (par 10
and 50,000 warrants to be offered in units, con¬

sisting

warrant

(12/2)

stock of record Dec. 2

common

share.

one

stook

common

entitling the holder to purchase

The; statement also includes

with

attached

additional

one

additional 10,000

an
for

of common stock reserved
issuance to key
employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner &
Co., Inc., New

York.

Indefinitely postponed.

National
Oct.

Bellas

Hess, Inc.
$5,318,800 of convertible subordinated de¬
Oct. 1, 1984, to be offered to common

filed

bentures,

due

Inc., New York.

stockholders

Midwestern Financial Corp. (12/14-18)
Nov. 9 filed 250,000 shares of common stock (par
$1).
Price—To be supplied by amendment.
Proceeds—To
pay the $1,360,000
balance to Majestic Mortgage Co. due

the basis of $100 of debentures for each

shares held

about

Nov.

in connection with

20, 1959; rights to ex¬
pire on or about Dec. 8.
Price—To be supplied by
amendment. Proceeds—For general corporate purposes,
including the possible increase of investment in the is¬
suing company's life insurance subsidiary. Office—14th

all of the

Avenue

the issuing company's acquisition of
outstanding stock of Majestic Savings & Loan
Association, with about $650,000 to be used for capital
contributions to its savings and loan associations and for
loans to other subsidiaries, $51,000 to be used to repay
principal and interest on a short-term bank loan, and
$55,000 to be used as additional working capital. Office
—2015

13th

Street, Boulder, Colo. Underwriters—W. R.
Staats & Co., Los Angeles, Calif., and Boettcher & Co.
and Bosworth, Sullivan & Co., Inc., both of
Denver, Colo.
•

Minitran Corp.

Oct.

—

(letter

For

general

purposes.

Office

—

Oliver

Street, Newark 2, N. J. . Underwriter—Pleasant
rities Co.,.392 Broad Street, Newark, N. J.
.
,

„

Missouri Power & Light Co.

Oct.

1989.

filed

$4,000,000

Proceeds—To

first

added

general

bonds, / due
funds, to be

connection

with the company's construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; White, Weld & Co. Bids—Expected to be
received up to 11 a.m. (EST) on Dec. 9.
Airlines

Inc.

Nov.

9 filed S3,500,000 of 6% convertible subordinated
debentures, due 1974, $1,917,500 of which are to be of¬
in exchange for a like amount of the company's
outstanding 5V2% convertible subordinated debentures,
due 1966.
The remainder, plus any not taken in the
exchange offer, are to be publicly offered. Price.—To

fered

supplied by amendment. Proceeds — For general
corporate purposes/including debenture redemption, air¬
plane equipment, and working capital.
Office—Utica,
N.

Underwriter—Dempsey-Tegeler & Co., St. Louis,

Mo.

Business

with the remainder to

purchase new equipment and ma¬
chinery and be used as working capital.
Office — 944
Halsey Street. Brooklyn, N. Y. Underwriter—Myron A.
Lomasney & Co., New York.
Montgomery Mortgage Investment Corp.
16 filed $3,000,000 of second mortgage notes and

Oct.

accompanying repurchase agreements, to
$3,000 units. Price—From $2,000 to $4,000

offered in
unit. Pro¬

be
per

ceeds—To purchase other second trust notes and to main¬

tain

for

reserve

repurchase of notes under its repur¬
Office—11236 Georgia Avenue, Silver
Spring, Md. Underwriter—There is no underwriter as
such, but Adrienne Investment Corp., an affiliate of the
a

chase agreements.

issuing

company, will act as sales agent,
receive a selling commission of 7%.

will

for

which

and

common

will

its

use

share of Guaranty common. Proceeds—

one

Mortgage will

its proceeds fo rexpansion; Guaranty
proceeds for additional working capital.

606 West Wisconsin

Ave., Mil¬

waukee, Wis.
Motel

Oct.

(par 20

cents). Price—At-the-market.

selling

stockholders.

St., Roanoke, Va.
Munston

Nov, .9
stock
For

Office—144

common

Proceeds—

Jefferson

Underwriter—None.

Manufacturing Corp.
(letter of notification) 50.000 shares of common
(par 10 cents). Price—$6 per share.
Proceeds—
corporate

Office—Beech

purposes.

Street,

Islip, N. Y. Underwriter—Heft, Kahn & Infante, Inc.,
Hempstead, N. Y.
Offering—Expected in a couple of
weeks.

(letter of notification) $300,000 of 6M>% convert¬

ible subordinated
Debentures

are

debentures, series A, due Oct A, 1969.
convertible at any time through Oct. 1,

1968 into class A

the

rate

debentures

100

non-voting

converted.

Regina, Saskatchewan, Canada. Underwriter—
Rumball Ltd., Regina, Saskatchewan, Canada.
Motels,

A,/.'.

Inc.

(letter of notification) 3,500 shares of common
(no par). Price — $75 per share. Proceeds —For
guarantee of a lease of Howard Johnson Motor Lodge in
stock

Prince

Georges County, Md., operating expenses and ac¬
quisition of a third motel. -Office—59 S. Park Avenue,
Longmeadow, Mass. Underwriter—None.
National Munsey Co.
Sept. 28 filed 293 limited partnership interests. Price—
$5,000 per unit. Proceeds—To purchase land and erect
buildings thereon. Office—535 Fifth Avenue, New York
City. Underwriter—Tenney Securities Corp. Offering—

Expected this month.
National
Standard
Electronics, Inc.
Sept. 25 (letter of notification) 300,000 shares of common
(par 10 cents).
Price—$1 per share.
Proceeds—
For general corporate purposes.
Underwriter—Palombi
Securities Co., Inc., New York City. Offering—Expected
any day.

stock

National

Video

filed

(11/30-12/11)
shares of class A stock

Corp.

283,307

Each certificate for class A shares will bear

(par $1).
endorse¬

ment

evidencing an interest in a Trust which will hold
all of the outstanding common stock of Rico Electronics,
Inc., a Puerto Rican manufacturing company affiliated
with National Video Corp.
Price — To Be supplied by
amendment. Proceeds—Tc selling stockholders. Office—
Chicago, 111.
Underwriter — Bache & Co., New York.
New

England Power Co. (12/9)
100,000 shares of cumulative preferred stock
(par $100). Proceeds—To reduce indebtedness. Under¬
writer—To be determined by competitive bidding. Prob¬
able
bidders:
Lehman
Brothers; Equitable Securities
Corp.; Kidder, Peabody & Co.; Lee Higginson Corp.,
and White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Nov. 2 filed

Fenner & Smith

Inc., and Eastman Dillon, Union Secu¬
rities & Co. (jointly). Bids—Expected to be received up
to 11 a.m. (EST) on Dec. 9.
•

York

New

Oct.

State

Electric &

filed 466.961 shares of

holders

of record Nov. 20

shares then held. The

Price

—

common

stock,

(no par),

of outstanding common stock
the basis of one new share for ea^.h

being offered to

Dec.

Gas Corp.

rights are scheduled to expire

$25.50 per share.

Proceeds

—

To dis¬

obligations incurred for construc¬
tion, with the balance to be applied to expenditures
for construction.
Office—Ithaca, N. Y.
Underwriters—
The First Boston Corp., Lehman Brothers, Wertheim &
Co. and Merrill Lynch, Pierce, Fenner & Smith Inc.
short

charge

term

North Carolina Telephone

Co.

Sept. 4 filed 576,405 shares of common capital stock, tc
be offered for subscription by holders of outstanding
stock in the ratio of two new shares for each five shares

share. Proceeds—To reduce indebt¬
edness with the balance, if any, to be used as working
Price—$2

per

capital. Office—Matthews, N. C. Underwriter—One oi
security dealers will be offered any shares no1
subscribed for at $2 per share.
more

Northeastern

Gas, Inc.
notification)

shares of common
share).
Proceeds — To
purchase material and for working capital. Office—2013
S. Oliver, Wichita, Kan. Underwriter—None.
Nov.

(letter

Price

stock.

—

par

($25

7,863

Nova-Tech, Inc.
(letter of notification) 120,000 shares of common

common

such

stock

Price—At

face

stock
for

(par $5) at
each $500
of\

•

Oak

Valley Sewerage Co. (11/30-12/4)
(letter of notification) $145,000 of 5^%

derwriter—Eastern

construction of sewerage collection and

general

funds

Investment

Proceeds

the

Corp., Manchester, N. H.

Vailey Water Co. (11/30-12/4)
(letter of' notification; $125,000 of 5V2% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost oi
30

of the water supply and distribution sys¬
tem; to pay the cost of a new 12 inch well to increase
the company's supply of water; and to pay the costs and
expenses of financing.
Office—330 Main St., Mantua,

construction

Underwriter

Bache

—

June

disposal system

Co., Philadelphia, Pa.

Occidental Petroleum Corp.
Oct. 29 filed 615,854 shares of common

stock (par 20
cents), 307,927 shares of which are to be offered for sub¬
scription by holders of outstanding common stock at the
rate

share for each

new

one

shares held.

The

re¬

maining shares are to be offered to a group of ind.ivid.uals, not as yet named, who have agreed to purchase not
less than 307,925 shares, and will also be offered shares
not bought by the holders of the outstanding common.
Price—To be supplied by amendment.
Proceeds—For
drilling, exploration, development, and to purchase an
interest in

Petroleum

Parker

Boulevard, Los Angeles,

Office—8255

Co.

Calif/

Beverly

Underwriter—None.

•

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter —
Assets Investment Co., Inc., New Orleans, La.
The SEC
"stop order" hearing has been postponed from Nov. 23
to Dec. 23.

Ovitron

Corp., Detroit, Mich.
Oct. 27 filed 150,000 shares of common stock (par one
cent). Price—$6 per share. Proceeds—For research and
working capital. Underwriter—Sutro Bros. & Co., New
York.

Offering—Expected

Oxford

sometime after Dec.

;

Chemical

Corp. .(11/30-12/4)
Oct. 22 filed 227,500 shares of class A common stock (pair
25 cents), of which 35,000 shares are to be offered first to
employees.
Any shares not so purchased plus an addi¬
tional 72,500 shares are to be publicly offered.
The re¬
maining 120,000 shares, representing outstanding stock,
are
also to be publicly offered. Price—To employees,
$4.55 per share; to the public, $5 per share. Proceeds—
For general funds. Office — 166 Central Ave., S. W.,
Atlanta, Ga. Underwriter—Johnson, Lane, Space Corp.,
Atlanta, Ga.; Francis I. duPont & Co., New York; and
The Robinson-Humphrey Co., Inc., Atlanta, Ga.
Pacific
Oct.

Uranium Mines Co.

filed

$3,000,000

secured

notes,

675,000

stock purchase warrants, and 675,000 shares oi
common stock. $1,600,000 of the notes and 360,000 war¬
rants are to be offered to holders of $1,600,000 of out¬

common

standing notes.
The remaining $1,400,000 of new notes
and 315,000 warrants are to be offered to American Secu¬
rities Corp., acting on behalf of their clients, for a total
of $1,344,000 for the notes and $56,000 for the war¬

sum

rants.
•

PaLoniar

Co. (12/7-11)
15-year 7% subordinated sink¬
ing fund debentures, due 1974, with common stock war¬
rants attached, and 80,000 shares of common stock ($1
Mortgage

13 filed $750,000 of

Nov.

to be offered in units of $1,000 principal amount
a warrant entitling the holder to buy
of common before 11/30/62.
Prices—To bo

par),

of debentures with
100

supplied
real

with

C»1!f.

Proceeds

amendment.

and

builders

home

individual

—

To be loaned to

borrowers

30th

Office—4026

estate.

Street,

connection,
San Diego,

Underwriter—J. A. Hogle & Co., Salt Lake

City,

Utah.
Pantasote Co.

fund
attached en¬
titling the holder to purchase 50 shares of common stock
of the issuing company for each $500 of debentures).
Aug. 28 filed $2,700,000 of 6% subordinated sinking

debentures, due Oct. 15, 1974 (with warrants

Price—100% and accrued interest from Oct. 15. Proceeds
^-For
of

construction, equipping, and placing in operation

new

plant, with the balance to be used for

general

corporate purposes. Office—26 Jefferson St., Passaic, N. J.
Underwriter — Blair & Co. Inc., New York.
Offering—•

Temporarily postponed.
Inc.

News

400,000*

Sept. 17 filed
shares of common stock (par 10
cents) with warrants to purchase an additional 100,00(1
common
shares at $3.25 per share. Price — $3.75 per-

Proceeds—For general corporate
including the addition of working capital, the
of indebtedness,
and the provision of the
$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York.
Office—245 W. 55th Street, New York.
UnderwriterHilton Securities, Inc., formerly Chauncey, Walden, Har¬
ris & Freed, Inc., New York.
Offering—Expected in
share, with warrants.

purposes,

reduction

about 30 days.
Perrine
Oct.

(12/15)

filed

$1,500,000 of 20-year
debentures due 1979, to be

nated

Inc.

•

Industries,

Price—At par.

$500 and $1,000.

plants; $150,000 to further

Beach, Calif. Underwriter—Holton, Henderson &
Co., Los Angeles, Calif.

of financing. Offlc*
Underwriter—Bache &,j

Oak

June

(no par). Price—$2 per Share. Proceeds—For de¬
velopment, purchase, parts for production, and additional
working capital. Office—1721
Sepulveda Blvd., Man¬
hattan

expenses

N. J.

to'establish two

company. Office—c/o
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
Un¬

the

St., Mantua,
Philadelphia, Pa.

Co.,
•

Main

Nov. 4

first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost of

—For

amount.

to pay the costs and

—330

per

stock

Mutual Credit Corp.
Oct. 6

Ltd.

Oct. 23

Electronic

general

—

held.

Roanoke, Inc.
(letter of notification) 9,000 shares of

stock

Co.

—

National

use

Office—(of both firms)

•

Price

Minerals

150,000 shares of common stock (no par).
per share.
Proceeds — To retire indebt¬

edness for construction of plant and for other
liabilities,
and the remainder will be used for
operating capital.

Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,GOO shares of common stock (par $10) in
a
joint registration with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage

Industrial

Aug. 4 filed

Oct.

Machines

Corp. (12/7-11)
Oct* 29 filed $600,000 of 6% 10-yeai subordinated con¬
vertible debentures, due 1969, and 30,000 outstanding
shares of common stock (par 40 cents). Price—For the
debentures, 100% of principal amount; for the common
stock, at a price to be related to the market. Proceeds—
To liquidate indebtedness in the amount of
$150,000,

amended.

•

Mohawk

stock.

new

Laird

used to retire certain short-term bank loans incurred in

Mohawk

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co.,
Inc., Detroit, Mich. Statement to be
For

Office

Un¬

..National Citrus Corp.

(12/9)
mortgage

Secu¬

Street, North Kansas City, Mo.
& Co., Kansas City, Mo.

April 20

mon

National

notification) 150,000 shares of com¬
Price—$2 per share. Proceeds

corporate

Swift

and

derwriter—Stern Bros.

(12/7-11)

stock (par one cent).

mon

Narda

ness,

Middlesex Water Co.

wi****#»

The Commercial and Financial Chronicle

corporate, purposes, including the reduction of indebted¬
acquisition of properties, and additional working

m fnuMtfw

industrial

Proceeds—To be used

plants in the midwest and southeast
to spend $350,000 to equip these new

new

3fceas;

equip and improve the com¬
to re¬

pany's Brooklyn plant; and $600,000 will be used
tire corporate indebtedness. Underwriter—S. D.
&

Co., New York.
Petroleum

;

convertible subordi¬
offered in units oil

Projects

Fuller
*

$1,500,000 of participations in oil and gas
exploratory fund. Price — The minimum participation
Oct.

filed

Continued on page 35

The Commercial and Financial Chronicle

(2230)

Continued from page 37
will

cost

Mineral Projects Co., Ltd.
Piedmont Natural Gas Co.,
Oct. 22 filed 36,237 shares of

Inc.
cumulative convertible
preferred stock (without par value) being offered to
common stockholders of record Nov.
20, 1959, on the
basis of

one

share of preferred stock for each 35 of

new

stock then

common

held; rights to expire on Dec. 7. Price
$100 per share (flat). Proceeds—For repayment of notes
incurred for construction program.
Underwriter—White;
Weld & Co., New York.
—To be supplied by amendment. Proceeds—For
repay¬
ment of notes incurred for construction
program.

55,000 shares

to be offered first to stock¬

are

record

Aug. 31, 1959, and 45,000 shares (mini¬
mum) are to be offered to the public, which will also be
offered any shares unsubscribed for
by said stockholders.
Price—$5 per share. Proceeds — For general corporate
purposes, possibly including the enabling of the issuing
company to make application for licenses to conduct its
insurance business in States other than Illinois, the sole
State in which it is presently licensed. Office—222 W
Adams

Street, Chicago, 111.

filed

Advisor—Revere

Advisory, Inc.

Inc.
Nov. 23 filed 179,145 shares of common
be offered

Underwriter—None.

State¬

share; to the public, $13.50 per share. Proceeds—To pay
outstanding bank loans and for working capital. Office
W. 78th St., Minneapolis, Minn.
UnderwriterWhite, Weld & Co., Minneapolis.
•
-

Aug. 27 filed 330,000 shares of common stock

outstanding stock of Rototiller, Inc.
on

The exchange offer
Dec. 1, 1959. Office—700 Mar-

cellus St., Syracuse, N. Y. Underwriter—None.

i? Preferred Underwriters, Inc.
Nov. 13 (letter of notification)
60,000 shares of common
(par $1).
Price — $5 per share.
Proceeds — For
working capital.
Office—1020 Virginia Street, Seattle,

stock

Wash.

Roulette

executive offices and sound studio facilities

four

offered for subscription by holders' *>f "stock purchase
rights acquired in connection with life insurance policies

New

York.

St.

Regis Paper Co.
Nov. 12 filed 267,325 shares of
to

offered

common stock (par $5)
exchange for the outstanding common
& Ault Paper Co. on the basis of Wk

St. Regis shares for

Price—$5 per share.
Underwriter—None.

Fire

Proceeds—For

Casualty Co

working

capital

Corp.
Oct. 21 (letter of notification)
150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—
For general corporate purposes.

Office—City of Dover,
County of Kent, Del. Underwriter—All State Securities,
Inc., 80 Wall Street, New York, N. Y.
Puerto Rico

Industries, Inc.
48,500 shares of class A common stock,
(par $1), 200,000 shares of class B common stock (par $1)

and

filed

$388,000 of 6%

1, 1971.
common

par,

subordinated debentures, due July
With the exception of 151,500 shares of class B
allocated to the organizers of the
company at

the securities

Schmidt

—150 E. 42nd

to be offered to the public in units

are

Nov.

(letter

•

securities

its

notification)

(12/2)

88,000 shares of common stock (par $1),
of which 50,000 shares are to be offered for the account
of the issuing
company, and 38,000 shares, representing
outstanding stock, are to be offered for the accounts of
the present holders thereof.
Price—To be supplied by
amendment.

Proceeds—To be used
indebtedness.

working capital
East 38th St.,

Office—1720

Underwriters—Indianapolis Bond

Puerto Rico
the funds, esti¬
operating capital. Address—P. O.
Box No. 622, Little Rock, Ark. Underwriter—None.

Share Corp. and Kiser Cohn, & Shumaker, Inc., both of
Indianapolis, and Walston & Co., Inc., of New York

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common Stbck (par 25*).
Price
$1.50 per share. Proceeds
For general
corpo¬

Oct. 29

.Meat Packing
mated

subsidiary,

Co., Inc., which will

$600,000.

use

—

rate purposes. Office—1202 Myrtle
St., Erie, Pa.
writer—John G. Cravin &
Co., New York.

Under¬
Offering-

Expected in

couple of weeks.

Radiant Lamp & Electronics
Corp.
Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
vertible sinking fund
debentures, series II, due Oct. 15,
1969, and 120,000 shares of class A stock (par 10
cents).
Price
Fox debentures, 100% of
principal amount; for
stock, $5 per share. Proceeds—To acquire Radiant
Lamp
Corp., of Newark, N. J., with the balance to be used as
working capital. Office—40 Washington Place,
Kearney
N. J. Underwriter—Amos Treat &
Co., Inc., New York'
—

Statement

was

withdrawn

Nov.

10.

maximum of 500 shares. Price—At
par

($100 per share)
Proceeds—For working capital.
Office—1104 N. Main
St., Randolph, Mass. Underwriter—None.
>
•

•

Red Fish Boat Co.

common

(12/8)
(letter of notification) 400,000 shares of class A.
stock (par 10
cents). Price—75 cents per share

Proceeds—To pay
mortgages, accounts payable, purchase
raw
materials, expand production facilities and
expan¬
sion of sales program.

eBusiness—Manufactures

glass boats. Address—P. O. Box 610 Clarksville
Texas
Underwriter—R. A. Holman &
Co., Inc., New York, N. Y.
Renewal

Guaranty Corp.
(letter of notification) 100,000 shares

Oct. 28
of common
stock (par $1).
Price—$3 per share. Proceeds—For worktag caiptal. Office — First National Bank

Bldg., Suite
2323, Denver 2, Colo. Underwriter—Columbine
Securities Corp., Denver, Colo.
Reserve Insurance
Co.,

62,676
161

Chicago, III.
filec^ 110>837 shares of capital stock, of which

are

shaies

to be, sold for the
company's account and 48
are
to be sold for the
account of

gelling stockholders.
ment.

certain

Price—To be supplied by amend¬

Proceeds
-To be added to the
general funds of
the company to enable it to finance a
larger volume of
underwriting and to expand its area of operations. Un¬

Scaico

Sept. 23

Controls, Inc.
(leter of

stock

mon

notification) 240,000
(par 10 cents). Price—$1.25

com¬

share. Pro¬

per

development; increaese of plant
facilities; sales and training program; sales promotion
for

general

corporate

Office—P. O. Box
41, 450 Cooper St., Delanco, N. J. Underwriter—Albion
Securities Co., Inc., 11 Broadway, New York
4, N. Y
Scott-Mattson

purposes.

Farms,

Inc.

Oct. 27 filed 67,500 shares of

>t'

.
,

v,.

*V'_'

derwriter—None.

;

Standard

Beryllium/Corp.
'*'
Sept. 3 (letter of notification) 200,000 shares of common
stock (par one cent). Price—$1.50 per share.
Proceeds
—For working capital and general corporate
purposes.
Office—150 E. 43rd St., New York l7, N. Y. Underwriter
—R. G. Williams & Co., Inc., New York, N. Y..State

Industries

•

Oct. 5 filed $500,000 of 6% convertible subordinated de>-

bentures, due Oct. 1, 1974. Price—At 100% of principal
Proceeds—For general corporate purposes, in*
eluding the purchase and installation of a modern paint
plant, and the purchase and installation of new tube mill
equipment, Office—4019 Medford St., Los Angeles, Calif.

Underwriter—John Keenan & Co., Inc., Los Angeles.

Stelling Development Corp.
(letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla Under ^
'writer—Stanford Corp.. Washington, D. C.
Sterling Industrial Development Corp.
12 (letter of notification) 1,000 shares ex common
(no par). Price—$300 per share. Proceeds—To pay

Nov.

stock

amount

owed

land

and

for

working capital.

Office—3151 N. Washington Blvd., Arlington, Ya. Under¬
writer—None.

•

Superior Manufacturing
(12/2)
•

Oct.

stock

cents).

Instrument

Corp*

-V;
80,000 shares of common
V

notification)

(letter of

(par

Price—$3

share.

per

Proceeds—

For general corporate purposes.
Office—154-01
Ave., Flushing 55, N. Y. Business—Electronics.

Barclay
Under¬

writer—D. A. Lomasney & Co., New York, N. Y.

Supermarket Service, Inc.
14 (letter of notification) 9,000 shares of common
stock (no par). Price—$11.50 per share. Proceeds—For

working capital.
Conn.

•

Seligman & Latz, Inc. (11/30-12/4)
Oct. 28 filed 250,000 shares of common stock
(par $1).
Price—To be supplied
by amendment.
Proceeds—To
selling stockholders. Business—The company operates
259 beauty salons in leased
premises in leading depart¬
ment and

specialty stores. Underwriter—F. Eberstadt &
Co., New York.
Shield

Sept.

and

test equipment; advertising and for
working
Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen, Inc., Denver,
Colorado.

capital.

Sottile, Inc. (Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),
1,543,000 shares
of

the

are

be issued

and

sold for

and 457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
if certain selling stockholders. Price—To be
supplied by
amendment.
stock

Invest

company,

Proceeds—To

retire

70%

the

common

outstanding at the date of the stock offering; to
in

the

capital

103

—

Main

Andrews

St., Plainville,
Co.. Hartford,

Talcott

(James).

Inc.

(12/7-12)

stock

"common

before

Dec.

1969. Price;—To be-:

'supplied by amendment. Proceeds—For additional work*
'ing capital.
Underwriters — F. Eberstadt & Co. and
White, Weld & Co., both of New York.
Tasti-Cup Coffee Corp.
Nov.

(letter

stock

mon

notification)

(par 10 cents).

ceeds—For

Street, Brooklyn 1, N. Y.

100,000

Price—$1.50

general corporate

per

com¬

share.

Pre*

Office—-30 Main*

purposes.

Underwriter—None.

Noy.

Manufacturing Corp.
$750,000 of 6% convertible

filed

debentures,

Price

1969.

due

Proceeds—For

amount.

—

general

At 100%
corporate

subordinated
of

principal
in¬

purposes

cluding expansion

ancj debt reduction. Office—Amity-'
Underwriters—Amos Treat & Co., Inc.,
Truman; Was3erman & Co., Inc., both of New York

ville, L. I., N. Y.
and

City.

Offering'—Expected in January,

1960.

if Texas Gas Transmission Corp.
Nov. 24 filed 80,000 shares of common.stock "fear $5) to
be offered under the company's Stock Option Plan for
Key Employees of the corporation and its subsidiary,
Texas Gas Exploration Corp.

Chemical Ltd.

(letter of notification) 95,000 shares of capital
stock (par 10 cents). Price—$1.50
per share. Proceeds—
To purchase and install
manufacturing equipment; con¬

which

—

Nov. 12 filed $15,000,000 of senior notes due 1979 and
*$7,500,000 of capital notes due 1979 and convertible into

the account

Office

Underwriter

Conn.

Telechrcme

lotte, N. C.

stock, of r which
15,000 shares are to be offered to employees of the issu¬
ing company and its subsidiaries, and 210,000 shares
represent outstanding stock held by previous stockhold¬
ers of Southwest Acceptance Co., who
may offer their
shares.'Price—At market. Office—Amarillo, T^kas/Un*

(12/8-9)

outstanding

common stock,
(par $1). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Off ice-:—Professional
Bldg., Ft.
Pierce, Fla. Underwriter—R. S. Dickson & Co., Char¬

trol

share.

Southwestern Investment Co.
Nov. 2 filed 225,000 shares of common

ceeds—For research and

fiber¬

stock (par. $1)".
investment.-Office

Oct.

Savoy Industries, Inc.
(letter of notification) 23,412 shares of common
stock (par 25 cents), of which 12,300 shares will be of¬
fered'4o five former stockholders in
exchange for out¬
standing capital stock of Rex Bassett, Inc.; 11,112 shares
will be issued
upon conversion, if any, of convertible
debentures. Price—$9 per share. Office—416
Enterprise
Bldg., Tulsa, Okla. Underwriter—None.

•

Realty Investment Associates, Inc.
Oct. 30 (letter of
notification) 3,000 shares of capital
stock with a minimum
subscription of 50 shares and a

Oct. 22

City.

and

Proceeds—For

Greenville,' S. C.. Underwriter -— Capital Securities
Corp., on a "best efforts" basis, with a commission of 50.
cents per

off

Sams & Co.

filed

Indianapolis, Ind.

the

share.

per

—

June 8

(Howard W.)

Oct.

and to reduce

debentures, 500 class A shares, and 500 class
Price—$5,000 per unit. Proceeds—For invest¬

Price—$5

stock

Pre-organization frac¬
aggregate amount of $300,000. Price
—$24 per gross. Proceeds—For purchase of 20/20 from
the manufacturing company and for
advertising to pro¬
mote the sale and distribution of same.
Office—812
Mayo Building, Tulsa, Okla. Underwriter—None.
tional interests in

Of $4,000 of
in

Office

Street, New York City.

B shares.
ment

each Schmidt & Ault share.

• 20/20 Sales Co.

Prudential Commercial

Oct.

officials, who-are

company

amount.

agents and

Producers

Securities, Inc., 580 Fifth
Offering—Expected in three or

weeks.

stock

ac-'

Underwriter—Hilton

issued by Dependable Life Insurance Co. and to certain

brokers

therein,

quiring technical equipment and machinery, and adding
to
working capital.
Office — 659 10th Avenue, New

Avenue,

Underwriter—None.

Producers Fire & Casualty Co., Mesa, Ariz.
March 31 filed 400,000 shares of common stock to

Records, Inc.

(one cent),
of which 300,000 shares are to be publicly offered. Price
—$3.50 per share. Proceeds—For general corporate pur¬
poses, including moving to new quarters and installing "

York.

the

dealers

making

Southern Growth Industries, Inc.
filed 963,000 shares of common

22,609 shares of common

cents) of which 7,799 shares are tP be
offered to the employees of the company and the re¬
mainder to the public. Price—To employees, $12.83 per
(par

of consumer prod¬
which the company
615 Hillsboro St., Raleigh, N. C.

—

Nov.-12

Engineering Co.

(letter of notification)

stock

Office

offering, .may-pay a 10% commission to
connection with
the
sale, of their shares^
Statement effective Oct. 15.
v
\
I

Corp.
(letter of notification) 100,000 shares of common
($1 per share). Proceeds—To pur¬
chase a barge, mobile incinerators, working capital, etc.
Office—85 Centre St., Roxbury, Mass. UnderwritersThree company officials.
/
<
Oct

installment financing

Underwriter—None, but the

Nov. 3

Rosemount

the

other types of financing in

may engage.

stock. Price—At par

Porter-Cable Machine Corp.
(letter of notification) 10,910 shares of common
stock (par $10) to be offered in
exchange for all of the

(EST)

ucts

writer—None.

Oct. 23

p.m.

covering

stock (par $1)
employees of the company and its sub¬
sidiaries under the company's executive stock option
plan. Office—666 Fifth Avenue, New York City. Under¬
to

—4900

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working
capital and to be used for the purchase of receivables

ir Revlon,

ment effective Nov.4.

expires ai

Southern Frontier Finance Co.

—

Ridall

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1),
of which

—250 South East First Street, Miami, Fla. Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.

Inc., Philadelphia, Pa.
250,000 shares of capital stock (par $1).
Price
$13.50 per share. Proceeds — For investment.
Underwriter—Revere Management Co., Inc. InvestmentNov.

Under¬

writer—White, Weld & Co., New York.

holders of

G. Becker & Co. Inc., Chicago, 111.
This
offering will not be made in New York State. Offering
—Postponed indefinitely.
Revere Fund,

•

Thursday, November 26, 1959

seven bank subsidiaries; to repay a bank loan of
$6,400,000; to add to working capital; to retire certain long*
term indebtedness; and to develop citrus
groves. Office

derwriter—A.

$10,000. Office—Madison, N. J. Underwriter—

stocks

six

the

company's

(The)
Oct.

T Transportation Plan,

filed

Inc.

7% convertible subordinated
debentures, due November, 1969. 60,000 shares ci com¬
mon

stock

$600,000

(par

one

cent) and 30,000 common stock pur¬

chase warrants, to be offered

in units consisting of $100

debentures, 10 common shares, and. 5 warrants. Price
—$150 per unit. Proceeds—For general corporate'pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ross, Lyon & Co., Inc.,
New York.

if Thomas

Industries, Inc.
13,250 shares cf cumulative preferred stock,
$5 .series, $100 par value, to be issued to the sharehold¬
ers of Des Plaines Manufacturing, Co.,
formerly known
as
Benjamin Electric Manufacturing Co.
Thomas has
Nov. 19 filed

nrmiirpH

the

assets

and

assumed

certain

Facilities

Volume 190

Number 5902

Benjamin.- Electric, and

The

its dissolution will issue
registered/ Office—410 So. 3rd
St.-, Louisville, Ky. Underwriter—None.

the preferred stock

8 (letter of
notification) 28,570 shares of cumula¬
tive preferred stock (par
$5) and 14,285 shares of com¬
mon stock (par 10
cents) to be offered in units of one
share of preferred and one-half share of common.
Price

$10.50 per unit. Proceeds—For working capital.
E.

—-Ill

Inc.

75,000 shares of
per

Oct. 30 filed 2,250,000

Inc., and 1,080,000 shares are to be offered pro rata to
holders of the outstanding common shares of Venice

East, Inc., which are to be operated as subsidaries of the
issuing company. Office—1040 Bayview Drive, Fort Lau-

share. Proceeds—For

corporate purposes. ' Address—Bayville,
County, N. J.
Underwriter—General Investing
New York, N. Y.
'

Ocean
Corp.,

/derdale, Fla. Underwriter—None.

Aug. 28- filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce ipdebtedness by about $300,000, with the balance
to.be added to working capital of the company and its
subsidiaries.
Office—210 East Main Street,
Rockville,

„•

Underwriters—To be supplied by amendment.

Transamerica Corp.

of American Surety Co. of N. Y., on the basis of two
shares of Transamerica for three shares of Surety. The
is conditional upon holders of 51% of the
Surety

United Tourist Enterprises, Inc.
28 filed 4,500,000 shares of class A common

Jan.

accepting the exchange. Office—Montgomery St.
A.ve,, San Francisco, Calif.
'
Petroleum

stock

50 cents). Price — $2 per share. Proceeds —For
development and construction of a "Western Village"
and for construction of a Grand Estes Hotel and Con(par

at Columbus

Transcon

stock

offer

;
i

Development Corp.,

Mangum, Okla.

March 20 (letter of notification)
300,000 shares of common stock;
Price—At par ($1 per snare).
Proceeds—

vention Hall, to be

constructed in the immediate vicinity

Estes.Park Chalet, located in Larimer County, Colo.
Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo. State¬
of

Office —330 South 39th

For

development of oil properties. Underwriter—First
Investment Planning Co., Washington, D. C.

ment effective Oct. 9.

Transitron Electronic Corp.v( 12/8) •
Nov. 6 filed
1,000,000 shares of outstanding - common
stock (par $1). Price—To be
supplied by. .amendment.
Proceeds—To selling stockholders.
Office—168 Albion
St., Wakefield, Mass. Underwriter
Merrill Lynch,
Pierce, Fenner & Smith Inc., New York City.

Sept 25 filed 167,500 shares of common stock (par 10
cents), of which 150,000 shares are to be publicly offered.
Price^$4 per share. Proceeds — For general corporate
purposes, including provision of funds for the purchase
of the assets of a similarly engaged enterprise, working

Universal Container Corporation

—

Trans-World

Financial Co.

capital,

—

supplied

bank

repay

subsidiary,
the

loans

and

common

ance

amendment.

its

Proceeds

behalf

own

liquidate

the

stock

added

general

subsidiary,

with

funds..

balance

the

Office

—

(196©)
Oct.

Proceeds—For

curities Co.

filed $5,500,000 of participations
in Programs
Price—$5,000 per unit. Proceeds—For acquisition
development of undeveloped oil and gas properties.
Office—Longview, Texas. Underwriter—None.

Trinity Small Business Investment Co.
Price

17 filed 235,000 shares of capital stock (par $1).
$10.73 per share.
Proceeds—• For investment.

Street,

Greenville. S.

Under¬

writer—Tn be supplied by amendment. Statement effec¬
tive Sept. 25.
,
-~
'

Vtr.Tri-Sta.te Petroleum Corp.
,
; 7
Nov. 12 (letter cii notification) 199,900 shares of.commo;i
stock (par five cents). Price—$1.50 per share. Proceeds
—For. expenses for drilling and producing oil. Office—
1403 G. Daniel. Baldwin Bldg... Erie, Pa. Underwriter—
Daggett Securities Inc., Newark, N. J.
7,7
rTungsten Mountain Mining Co.
May 2i (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds, to be offered
in-denominations of $500 and $1,000 each. Price—100%
of principal amount. Proceeds—For
construction, instal¬
lation of machinery and equipment and working Capital.
Office—511 Securities

Building, Seattle 1, Wash. Under¬

writer—H. P* Pratt & Co., Seattle 4, Wash.
•

Turner Timber Corp. (12/14-18)
12 filed $2,000,000 of 6%% convertible debentures,

Nov.
due

1969, and 250,000 shares of

common

stock

(par

one

cent), to be offered in units consisting of $1,000 principal
amount

debentures and

125

of stock.

Price—

$1,001.25 (plus accrued interest from 12/15/59) per unit.
Proceeds^—For the acquisition of coal and timber prop¬

erties, witn any balance to be added to working capital.
Office—60 E. 42nd Street, New York City. Underwriter
Inc., Rochester, N. Y;

—Frank P. Hunt & Co.,
United Control

•

Corp., Seattle, Wash. (12/1)
$2,500,000 principal amount of convertible
debentures, due Dec. 1, 1974. Price—To
be supplied oy amendment.
Proceeds—For construction
with the balance (which will be at least $500,000) to
be used for general corporate purposes. Underwriter —
Blyth & Co., Inc., New York.
Nov.

10 filed

subordinated

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, including
office.furniture, fixtures, equipment and office space, b?
lease or purchase.
Office
Wilmington. Del. Under¬
writer—None
Myrl L. McKee of Portland, Ore., i#
—

-—

—

United. Marine, Inc. (12/7-11)
23 filed $1,250,000 or 6%

Oct.

sinking fund debentures,

due Dec. 1. 1974, with warrants to purchase 100 common

Peabody & Co.; Blyth & Co., Inc.; White, Weld & Co.,
and Dean Witter &

Co.

it Wear-Weld Engineering & Mfg. Co.
Nov; 16 (letter of notification) $150,000 of 7%
debentures to be offered in denominations

16-year

of $250 and

common stock (no par) to be offered
$250 debenture and 125 shares of com¬
Price—$500 per unit. Proceeds—For work¬
ing capital and part payment of indebtedness to the
bank. Office—4831 S. E. Division Street, Portland, Ore.
Underwriter—Merritt, Vickers, Inc., New York, N. Y.

75,000 shares of
units of

mon

one

stock.

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬
turers; and for working capital. Office—65 Honeck St.,
Englewood, N. J. Underwriters—Amos Treat & Co., Inc.,
and Truman, Wasserman & Co., both of New York.
Statement effective July 8.
,
Western Wood Fiber Co.
March 5 filed 100,000 shares of common stock (par $10)
and

40,000 shares of preferred stock (par $25). Price—
Proceeds—For construction and equipment of
company's plant and for working capital. Office—-300
Montgomery St., San Francisco, Calif. Underwriter—
At

par.

None.

Western Carolina

Telephone Co.

share for each five shares held.

Price—$6.75 per share.

Statement effective Aug. 11.

struction. Office—15 South Main

St,, Weaverville, N. C.

• Western Heritage Life Insurance Co.
Aug. 26 filed 500,000 shares of common stock. Price—
$2 per share. Proceeds—For general corporate purposes.
Office—533 East McDowell Road, Phoehix, Ariz. Under¬
writer—None, Some of the shares may be sold by sales¬
men empio.yeci
by ine company, or by registered brokerdealers. A commission not to exceed 17%, or 34 cents
per share, may be paid to sellers of such shares. State¬

effective

ment

Nov.

13.

—

Jackson &

—

Main

Price—$5,378.39 per unit.
Underwriter—O'Malley Se¬

& Co., Inc.
(.12/1-4)
shares of non-voting common stock
(par 50 cents). Price—To be supplied by amendment.
Office
Boston, Mass. Underwriter — Paine, Webber,

Office—South

investment.

Nov. 3 filed 400,000

and

April

in¬

Sanders

Vance

6001-4.

by amendment. Proceeds — To repay
notes due May 2, 1960 in the amount of $12,000,000, with
the balance for construction.
Underwriters — Kidder,

Underwriter—None.

terests) to be offered in units.

Trice Oil and Gas Co.

Price-

supplied

Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
Antonio, Tex.
June

Beverly Boulevard, Los Angeles, Calif. Underwriter—
W. R. Staats & Co., Los Angeles, who hasacquired for
investment purposes in exchange for $20,000 cash the
10,000 shares of the filing not accounted for. above.

Proceeds—For general corporate purposes, including the
reduction of indebtedness and the continuation of con¬

Val Vista Investment Co., Phoenix, Ariz.
29 filed 80 investment contracts (partnership

bal¬
8001

$5,000,000 of sinking fund debentures due 1985.

July 13 (letter of notification) 10,000 shares of common
stock (par 15 cents). Price—$5 per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
San

for

it Washington Water Power Co.
Nov. 24 fued $10,000,000 of first mortgage bonds and

Nov. 4 filed 71,513 shares of common stock (par $5), to
be offered to stockholders on the basis of one new

Universal Finance Corp.

—

that

and

unpaid

equipment, and expansion. Office—Louis¬
Underwriter—Michael G. Kletz & Co., New

York.

Oct. 26 filed .645,000 shares of common stock
(par $1) of
which 420,000 shares are to be offered for the account of
the issuing company, and
225,000 shares are to be offered
for the accounts of the present holders thereof.
Price

Washington Mortgage and Development Co.,vlnc.
Sept. 29 filed 100,000 shares of common stock (par 10c)
Price—$5 per share. Proceeds—For investment in mort¬
gage notes secured by real estate. Office—1028 Connecti¬
cut Ave., N. W. Washington, D. C. Underwriters—Amer¬
ican Diversified Mutual Securities, Inc. and Gildar &
Co., both of Washington, D. C.
;

(11/30-12/4)

new

ville, Ky.

(11/30^12/3)

$100 each.

Sonics Corp.

(letter of notification) 73,300 shares of common
(no par).
Price—$2.50 per share. Proceeds—For
working capital. Office—Somerville, Mass. Underwriter
—Old Colony Investment Co., Stoneham, Mass.

Nov.

Nov. 9 filed 832,000 shares of
capital stock (par $2), to
be offered in
exchange for the capital stock'(par $6.25)

stock

Alloy Corp.
Oct. 3 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For general corporate purposes.
Office—266 Glenwood
Avenue, Bloomfield, N. J. Underwriter—Robert Edelstein Co., 52 Wall Street, New York 5, N. Y.
U. S. Magnet &

Tower's Marts, Inc.

Conn.

shares of common stock, of which

1,170,000 shares are to be offered pro rata to holders
outstanding common shares of Eastern Properties,

of the

common

general

Office—Millville, N. J. Un¬

U. S. Land Development Corp.

Office

(12/16)

Underwriter—None.

derwriter—Boenning & Co., Philadelphia, Pa.

St., Morristown, Tenn.
Underwriter—
Texas National Corp., San
Antonio, Tex.
★ Tobin Craft,

common

expenses incidental thereto.

Main

Nov. 17« (letter of
notification)
stock (par 10 cents). Price—$2

Proceeds—To construct a warehouse and for
working capital. Office—6210 Denton Dr., Dallas, Tex."

(par $1), to be offered in units of 100
shares and $1,000 of such debentures. Price—

$1,125 per unit.. Proceeds—For the acquisition of Rich¬
ardson Boat Co., Inc., and Colonial Boat Works, Inc., and

Oct.

of common stock

shares for each $1,000 of debentures, and 125,000 shares

upon

now

Timeplan Finance Corp.

(2231)

Commercial arid Financial Chronicle

•

Curtis, New York.

Variable Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
conta cts.
Proceeds—For investment, etc. Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.

■it Vernier Missile Systems, Inc.
Nov. 17 (letter of notification) 15,000 shares of common
stock.
Price—A1 par* ($10' per share).
Proceeds—For
1 working
capital.
Office—10575
Folsom
Boulevard,
Rancho Cordova, Calif.
Underwriter—None.
Victoreen

Instrument Co.

(12/14-18)

of 6% convertible debentures,
due Dec. 15, 1974, to be offered m coupon form in de¬
nominations of $1,000.
Price — At 100% of principal
amount plus accrued interest from Dec. 15, 1959 to date
of delivery. Proceeds—$1,850,000 is to be used to retire
a short-term bank
loan undertaken in connection with

Nov.

filed $2,500,000

acquiring the assets of Standard Felt Co., with the bal¬
to be used for general corporate purposes. Office—
5806 Hough Avenue, Cleveland, Ohio. Underwriter—Van
Alstyne, Noel & Co., New York City.
*
,

ance

Virginia-Carolina Chemical Corp.
13 filed $1,500,000 of participations in its Stock
Purchase Plan for Employees, and 100,000 shares of com¬
mon stock (no par), purchasable under the Plan.
Office
—401 East Main Street, Richmond, Va.
Underwriter—
Nov.

None.

Vita-Plus Beverage

Co., Inc.

Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation
of a program of national distribution and for working
capital. Office—373 Herzl St., Brooklyn. N. Y. Under¬
writer—Glen Arthur & Co., New York, N. Y.
Vulcan Materials Co., Inc.

Western Reserve Life Assurance Co.

Oct.

filed

100,000 shares of common stock, being of¬
by stockholders at the rate of one
each share held. Rights expire Nov. 30.
Price—$7.50 per share.
Proceeds—For working capital.
Office—Cleveland, Ohio. Underwriters — McDonald &
Co., and Ball, Burge & Kraus, both of Cleveland, Ohio.
fered for subscription
new

share for

White Shield Corp.,

New York

Oct. 20 filed

110,000 shares of common stock (par 10c).
Price—To be supplied by amendment. Proceeds—For ad¬

vertising and

general

to be offered

are

funds.
"all

Underwriter—The shares
none" basis by Adams &

Peck, of New York, who will advise the issuing company
before the close of business on the third full business day

following the effective date of registration
they will purchase the shares.

Winkelman Bros. Apparel, Inc. (12/1)
22 filed 145,000 shares of class A common

plied by amendment. Proceeds—For general corporate
purposes, Office—25 Parsons St., Detroit, Mich. Under¬
writer—Watling, Lerchen & Co., Detroit.
Worcester County Electric Co.
30 filed $7,500,000 of first mortgage

Oct.

ly);

ic Waco, Inc.
9 (letter of notification) 1,000 shares of common
stock (no par) and 1,000 eight years 6% unsecured de¬
bentures. Price—Of stock, $100 per;share; of debentures

bonds,

due

1989, and 35,000 shares of common stock, the stock to be
sold to its corporate parent, New England Electric Sys¬
tem. Proceeds—First to the payment of short-term notes
payable, then outstanding, incurred for capitalizable con¬
struction expenditures, including notes payable to NEES,
presently amounting to $6,800,000.
The balance will be
used to pay the cost of or the reimbursement of Worces¬
ter's treasury for, extensions, enlargements, and addi¬
tions to the plant and property of the company. Under*
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.;

Nov.

stock

(par $3), of which 70,000 shares are to be offered for
the account of the company and 75,000 shares, repre¬
senting outstanding stock, are to be offered for die ac¬
counts of the present holders thereof. Price—To be sup¬

stock and 560,000 shares of common stock,
to the stockholders of Ralph E. Mills Co.,

became effective on July 20.

to whether

Oct.

June 29 filed 10,000 shares of

6%% cumulative preferred
to be offered
Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange
for all the outstanding ^capital stock of these three cor¬
porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook, Ala. Statement

Kidder, Peabody

Blyth & Co., Inc. and White, Weld & Co. (joints
Merrill Lynch, Pierce, Fenner & Smith Inc.; The
First Boston Corp.; Coffin & Burr, Inc.
Bids—Expected
& Co.;

be received

Dec. 7.

Word Record Distributing Co.
Oct. 30 (letter of notification) 20,000
stock

shares of common

(par 10 cents) to be offered primarily

to distrib¬

utors, certain key men within the distributor organiza¬
tions and recording artists of the company. Price—$10
per share. Proceeds—To retire a debt; purchase invenContinued on page 49

The Commercial and Financial Chronicle

(2232)

Continued from

page

May

Ave., Waco, Tex. Under-

writer—None.

Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
mon stock. Price—At par
(three cents per share). Pro¬
ceeds—For mining expenses. Office—Noble Hotel Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,
Pittsburgh, Pa.
16

stock

Batteries, Inc.
(letter of notification)

writer—To be determined by competitive bidding. Prob¬

Lansing, Mich.
York

Price—$6 per share. Proceeds—For
capital.
Address—U. S. Highway 41 South,
Tampa, Fla. Underwriter—None.

convertible

determined

•

Underwriter

bidding.

—

Probable

bidders;

new

Prospective Offerings

each

for

•

Florida

Miami, Fla.

New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co..
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M

que,

Securities

Registration—Expected

Registration—Expected iw the immediate future.
American Hospital Supply Corp.
28 directors of this company have

Oct.

authorized an
equity financing, number of shares has not as
yet been determined. Proceeds—For company's expan¬
sion program, to retire bank loans, and for general cor¬
porate purposes. Underwriters—Eastman Dillon, Union
Securities & Co. and Smith, Barney & Co., both of New
York. ' Registration — Expected sometime after Jan. 1,
additional

•

American Jet School, Inc.,

issue and sell

100.000 shares

would

add

about

pansion of present Michigan and Ohio sales force to

shares currently outstanding

business.

Office—1609

Kalamazoo

St.,

Lansing,

presently

negotiating

with

two

York

New

Nov.

plus.

1959. Proceeds—To increase capital and sur¬
Underwriter—Francis I. du Pont & Co., New York.

House,

Nov. 4

supplied by amendment. Proceeds — To build
chain of coffee houses, establish commissaries and for
general corporate purposes. Office — 1500 Clifton Ave.,

per

offering

$1,000

less

sale

only

the

cents

price

REPORT

for

the

lieu

The

initial

high

first

definite
call

redemption

five

years,

no-call

price

109.19 for the entire

clause.

stands

period.

by the glowing

American

suc¬

Telephone

was

Gulf States Utilities Co.'s $16

million

new

double-A

rated

Telegraphic Co.'s recent big offer¬ bonds. These brought a top bid of
ing which carried a 5.22% yield, 101.83 for a 54% coupon. Here
investment
bankers
were
a
bit again five bids were made in all,
more
venturesome this week in the two best being separated by
bidding for a smattering of smaller 1.50 per $1,000 bond.
issues which were up for grabs.
Reoffered to yield 5.08% to the
Potomac Electric Co.'s $15 mil¬ buyer, this issue was
hardly to be
lion of first mortgage bonds led
regarded as the speedster of the
the parade on Monday, being bid week
and while the bonds were

in;

514%

offered to yield

101.7599

and

5.10%. There

re-

were

five bids in all, all close, with the

reported

moving,

slower than in the
cessor

issues.

their
case

pace

bit of

ters.

was

of prede¬

issues

few

habit

may

fall

bidding

making for

some

feared that

into

quar¬

their

themselves

dealers out

old
and

reasonable

profit.

money

terms

are

utional

the

As
issue
out
were

the

right, and major insti-

displaying

much

its 1960

attitude, the hope

among

the

business

5.22%

investors.

that

the

relatively

and

The

small,

roared

expansion program.

plans to

company

the

sale

first

Office—Houston, Texas.

specific type of securities to be offered in exchange for
the company's presently outstanding 6% 20-year income
debenture bonds.
It was originally contemplated that
the
7 V2

proposed

would

financing

consist

$837,200 of
purchase

% subordinated debentures and warrants to

25,116 shares of class A common stock ($1 par). White,
Weld & Cc. and Pierce, Carrison, Wulbern, Inc. (jointly)
will underwrite the offering,
It is expected that the

On Tuesday

The calibre of the current mar¬

"street-

part

for

the

progres¬

sive drop in reoffering yield.

bankers will be bid¬

General Telephone Corp.
California
securities, and on

ding

new

really be tested next
Thursday several groups will com¬
Consolidated Edison
pete for $16 million of Arkansas
Co. of N. Y., Inc., comes into the
Louisiana Gas Co. bonds.
market
with $75 million of its
Monday, as usual, could bring a
first
and
refunding
mortgage

ket

could

week

when

bonds

smattering of smaller prospects to

Tuesday.

wire, but in recent weeks this

the
This week's corporate

emissions

hardly has been the case.

sufficiently large to have brought
about

real

mettle.

tion could

The

test

of the

and

opera¬

do just that.

bonds

will

redeemable

be non-callable
at

yield of 5.15 to

G. M. Kirsch

market's

But the impending

par,

5.^0%.

two

sized" dealers which may have ac¬
counted

the
with

+ West Florida Natural Gas Co.
Nov. 25 it was reported that the company is contemplat¬

will

yielded
to

that
1960

mortgage bonds, and common and preferred stock. Pro¬
ceeds—To raise permanent funds for the financing of

plus the
keep this in mind
coupon rate. Those who have been
figuring their future bids.
scouting the situation look for a
noted before, the Telephone price and rate to set a reoffering

bankers
when

investment

for

buyers

same

those

twice

hardly could have been considered

With the public showing that it

has

market

come

Could Be Real Test

nervousness

bankers

offering will take place early in January.

Hereabouts

their

Running close behind with the
yield working progressively lower
Erftbcldened

for

ing the filing of an amendment to its original registrar
statement of Aug. 28 which will provide for the

renewed tendency to do a
reaching," so to speak, for

last

by 39,340 shares'
offering of additional stock to
The offering, to be made at the
share for each eight held of record Nov.

way

tion

Keep Pot Boiling

"little

in the bank's capital stock

Transcontinental Gas Pipe Line Corp./

(1/19)

winner.

the

Sept. 29 it-was announced

ler, Eastman Dillon, Union Securities & Co., and Equit¬
(jointly). Bids—Expected to be re¬

than

Trust Co.

6, will expire Nov. 30.

was

Here again, as in the case of the
Telephone issue, the bonds had the

attraction

Co.

increase
pave

rate of one new

The

REPORTER'S

cess

Service

holders at $19 a share.

able Securities Corp.
ceived on Jan. 19.

Lansing, Mich. Underwriter—In New York, to be named.

runnerup

Gas

Bank

announced Nov. 4 that stockholders have approved

was

reported that the company contemplates
$7,500,000 of first mortgage bonds. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; White, Weld &
Co.; Merrill Lynch, Pierce, Fenner & Smith Inc., and
Kidder, Peabody & Co. (jointly); Salomon Bros. & Hutz¬
the

Inc., Lansing, Mich.

OUR

Mich. Underwriter—

was

Louisiana

Aug. 31 it was announced company plans to issue and
tell 100,000 shares of common stock (par 10 cents). Price
—To

Trade

Radio broadcasting.

—

Jan. 6.

been

was reported that the company is planning
$7,000,000 of additional common stock,
probably in the form of a rights offering and a negoti¬
ated underwriting. Last rights offering was underwritten
by Stone & Webster Securities Corp., New York.

placed

were

Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly): Lehman Brothers and Boar
Stearns & Co. (jointly). Bids—Expected to be received

Brooklyn Union Gas Co.
Aug. 19 it was reported that the company is contem¬
plating some additional equity financing, the form of
which will be decided on shortly.
It will probably be
preferred stock. Proceeds — For construction program.
Offering—Expected in the first quarter of 1960.

have

issues

Tampa Electric Co.

City Power & Light Co.
reported that the company plans to Issue
and sell $20,000,000 of first mortgage bonds. Proceeds—
For construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White.

11,

Coffee

Business

Shepard St., Lansing,
York, to be named.

Dec. 29 it

incurred for cur¬

the sale of about

Kansas

the bank is

C. McMeekin, President, announced plans
annroximately $8,000,000 of bonds in December,

Proceeds—To repay bank loans
construction program.
Previous

Sept. 14 it

offering to the holders of the com¬
pany's outstanding capital stock (par $12.50) of record
Nov. 12, 1959, the right to subscribe et $26 per share for
9,750 additional shares of capital stock.
Subscription
warrants will expire at the close of business day on
Dec.

Last bond issues

Office—130

if-Bank of Westbury Trust Co.

month.

placed privately.

In New

program.

22, S.

rent

sition of radio stations.

under¬

this

1959.

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
100,000 shares of common stock (par 10 cents). Price
-^To be supplied by amendment. Proceeds—For acqui¬

writers.

company and will be
general corporate purposes, including pay¬
any unsecured bank loans which

maturity of

be outstanding, and including payment of

cell

sell

Mich.

for its

June

privately.

Underwriter—In New York, to be named. The company
is

bonds.

new

(12/15)

the* company

South Carolina Electric & Gas Co.

For

$4,500,000 of

national one, and introduction of new courses and resi¬
dent study schools.
Business—In correspondence school

Gas Co.

portion
Offering
—Expected in December. Underwriter—Merrill Lynch,
Pierce, Fenner & Smith Inc. Registration — Expected

may

600,000

ment before

was reported company received approval from
the Territorial Public Utilities Commission to issue about

(par $1)
Price—To be supplied by amendment. Proceeds—For ex¬

that

later

which

...

added to the general funds of the
used

Aug. 3 it

stock

common

Electric

announced

was

conversion

/■

Co.

Gas

on that
application with the Board of Public Utility
Commissioners of the State of New Jersey covering the
proposed issuance and sale of 800,000 shares of common
stock (without nominal or par value). Proceeds—To be

expansion. Office — Olympia, Wash.
Underwriter—Financing in past has been handled by
Blyth & Co., Inc. Offering — Expected pursuant to a
stockholders meeting to be held on Dec. 4 in Augusta,
Georgia.

Lansing, Mich.

date filed

Corp., same address.
couple of weeks.

Illinois

of the cost of its current construction

Proceeds

announced that the corporation plans to

was

Business—Manufacturer of mufflers and

Service

Public

Oct.

Hawaiian Telephone Co.

Aug. 31 it

stock.

Georgia-Pacific Corp.
Aug. 19 it was reported that the company plans to reg¬
ister about $10,000,000 of convertible preferred stock,
to the number of common

1960.

Corporation, Rochester, Mich.
reported that this company contemplates
approximately 200,000 shares of

& Co., both of New York.

gan

held.

reported that

Underwriter—Midtown

sold

standing bank loans and for 1960 construction program.
Underwriters—The First Boston Corp. and Glore, For¬

West Coast

was

will

issue

remaining 34% bal¬
a selling stockholder.

iti ic was announced
by Marvin Chandler, Presi¬
dent, that the company expects to sell $10,000,000 to
$15,000,000 of straight preferred stcck early next year,
subject to market conditions. Proceeds—To retire out¬

Corp.
a public offering of common
stock is expected later this year. Proceeds — For land
acquisition. Office—30 East 60th Street, New York City.
Oct. 22 it

the

Nov.

derwriter—None.
• American
Gypsum Co.
July 15 it was reported that the company will registei
debt and equity securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬

6b%

was

Northern

Price—$40 per
Proceeds—To increase capital and surplus. Un¬

share.

Acout

New York.

four

Underwriter—Mortimer B. Burnside & Co., Inc..

gears.

Sept. 14 it was announced stockholders have approved
a proposed offering to stockholders of 150,000 additional
shares of capital stock (par $10) on the basis of one

—None.

(12/14-18)
that the company is contem¬
registration of 17,000 shares of

reported

placing

stock.

common

First National Bank of

Stores, Inc.

was

New-Era

City, N. J.
Stockholders of this Bank are being offered rights to
subscribe for 31,000 additional shares of stock; rights
to expire on Dec. 3.- Price—$53 per share.
Proceeds—To
increase capital and surplus.

allotment; these rights also expire Dec. 8, 1959. Price—
$47 per share. Proceeds—To pay off a temporary bank
loan. Office—127 W. Market St., York, Pa. Underwriter

Underwriter—To be named later in New

the early registration of

First National Bank of Jersey

than 100 additional shares, subject to

the

Sept. 1 it

(jointly); Blyth & Co.. Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly),

Mich.

pmns

Underwriter—Van Alstvne, Noel & Co., New York.*

Ladenburg, Thalmann & Co. (jointly); White, Weld
& Co.: The First Boston Corp. and Glore, Forgan & Co

company

for the company's account and the
ance will be sold for the account of

and

stock

common

amount of subor¬

undetermined

debentures.

competitive

Nedncn's

plating

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.

York County Gas Co.

the issuance of an

ing

Co., Lansing,

State.

Nov.

Aug. ,5 it was reported that the company is contemplat¬
dinated

Order

to register an
100,000 shares of common stock (par 10 cents).
be supplied by amendment.
Proceeds—For
expansion and working capital. Office—130 Shepard St.,

able bidders:

10,000 shares of common

Thursday, November 26, 1959

announced

Price—To

Duquesne Light Co.

Dec. 8, 1959. Unsubscribed shares go to full-time, regu¬
lar employees (including officers) allowing them to sub¬

Mail

was

to issue and sell $2U,UOO,UOO
bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬

Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
& Co, and Paine, Webber, Jackson & Curtis (jointly).

(letter of notification) 5,571 shares of common
(par $20), to be offered for subscription by stock¬
holders of record Nov. 17, 1959, on the basis of one new
share for each 15 shares then held; warrants to expire

company plans later in year

(par $2.50),

scribe for not

National
Oct.

President, announced that

of debenture

working

Oct.

Comertord,

James

lt>,

issue of

^ Yccam
Nov.

Natural Gas Co.

Consolidated

tdry, etc. Office- -3407 Franklin

BROOKLYN,

Opens
—

engaging in

Kirsch is

securities

business from offices at 2620

13th
of

Street

Kirsch

formerly
and

Inc.

Gerry

East

under the firm name

Co.

Mr. Kirsch was

with Jacwin &
Reynolds & Co.

Costa,

Joins Meadows Staff

Light Rioster Again

(Special to The Financial Chronicle)

''the

SPRINGFIELD, Mass.—Raymond
L. Parent has become connected

Consolidated
Edison issue, next week promises
again to be a relatively quiet pe¬
riod in corporate new issues.
Except

for

with

Meadows

Co.,

1490 Main

Volume

190

Number

5902

Business
AMERICAN

IRON

The

Activity
Week

(per cent capacity)

following statistical tabulations

week

INSTITUTE:

STEEL

AND

Indicated Steel operations

Nov. 28

§88.1

Nov. 28

§2,495,000

month available.

month ended

Month

Year

Week

Ago

*78.9

13.1

that

gallons

Crude

runs

(net tons)

condensate

and

each)
to stills—daily average

output

(bbls.)

—

Kerosene

output

(bbls.)

—.—

Distillate

fuel

(bbls.)

Nov. 13
Nov. 13
—Nov. 13

—

output

unfinished

Kerosene

(bbls.) at—

Distillate

fuel oil

gasoline (bbls.)
at—
at

(bbls.)

—

CONSTRUCTION

ENGINEERING

NEWS-RECORD:
U.

—

COAL OUTPUT

(U.

BUREAU

coal and

Bituminous

lignite

Electric output

AVERAGE

Finished steel

Scrap steel

(E.

(New

Lead

(St.

fZinc
Zinc

York)

178,913,000

181,624,000

179,990,000

32,220,000
164,330,000

57,990,000

57,799,000

59,745,000

67,251,000

638,408

560,658

527,782

510,960

580,768
.

$243,008,000

146,500,000

119,612,000

178,600,000

114,500,000

123,396,000

Nov. 19

85,600,000

148,900,000

96,200,000

108,890,000

18,300,000

*7,675,000

7,975,000

8,759,000

365,000

398,000

Nov. 14

167

160

157

423,000

Middle

13,812,000

13,270,000

12,762,000

285

6.196c

-Nov. 18
Nov. 18

——-—

6.196c

$66.41

$46.17

$45.17

$41.17

New

—

■

;

Private

12.800c

13.000c

12.500c

11.500c

102.250c

99.375c

82.54

84.21

88.73

Nov. 24

82.92

to v. 24

84.30

84.17

84.04

90.48

88.13

87.86

87.99

94.86

86.24

86.11

85.20

93.08

Nov. 24

84.04

83.91

84.17

90.20

79.01

Nov. 24

79.13

84.17

Nov. 24
Nov. 24
Nov. 24

82.27

82.15

82.90

87.99

84.43

84.04

83.28

90.63

86.24

86.11

85.98

92.79

4.09

3.54

4.86

4.38

Nov. 24

4.55

4.57

4.56

4.08

—Nov. 24

4.69

4.70

4.77

4.20

—

Nov. 24

4.86

4.87

4.85

4.40

Nov. 24

5.26

5.27

5.26

4.85

Nov. 24
Nov. 24
«ov; 24

5.00

5.01

4.„5

4.83

4.86

4.92

4.37

4.b9

4.70

4.71

4.22

COPPER

380.0

.386.5

end of period

—

382.4

Crop

All

284,288

Barley

313,809

Rye

523,320

523,694

Nov. 20

111.49

111.71

111.05

606,520

2,346,070

Oct. 30

2,872,780

2,150,720

2,054,850

2,952,590

Oct. 30

758,640

496,030

569,980

784,030

initiated

Total purchases

the

off

—-—

-——

Oct. 30

—

sales
initiated

the

purchases
sales

—

——

Other

sales

—

;

sales

;

DEALERS

EXCHANGE
sales

Odd-lot

Number

Dollar

SPECIALISTS

AND

SECURITIES

—

dealers

Number

57,710

121,900

458,880

544,310

725,710

867,920

532,700

602,020

847,610

1,019,959

800,540

824,580

Customers'

other sales

—

TOTAL

total sales—

„

227,940

111,710

145,380

154,700

Oct. 30

1,028,415

754,273

953,415

956,420

Oct. 30

1,256,355

365,983

1,098,795

1,111,120

Oct. 30

4,622,719

3,505,860

3,362,790

4,895,170

Oct. 30

1,049,130

502,200

54o,770

Oct. 30

3,9*7,925

3,047,203

3,208,895

4,028,200

Oct. 30

4,997,055

3,549,403

3,755,665

4,911,320

ROUND-LOT

FOR

Total

—

STOCK

AND

ACCOUNT

round-lot

Short

sales

Other

sales

SALES

ROUND-LOT

unmet

shares—

THE

SERIES

S. DEPT.

All

883,120

Oct. 30

2,136,045

1,565,776

1,667,559

1,686,273

Oct. 30

$108,158,299

$7.9,971,089

$82,044,477

$76,733,823

1,295,247

15,983

11,965

•Revised

112,079

*44,648

113,288

68,648

92,501

120,793

78,308

81,514

128,490

1,137,874

.■

;

___.

(bushels)

—

;

—

——

(tons)—

(tons)
(cleaned—100

bags)—

lb.

(bushels)

beans

—

;

—

14,692,000

summer

—

3,799,844

1,117,430

1,462,218

909,333

1,179,924

208,097

20,546

22,077

187,551

260,217

1,075,378

187,551
1,075.378

1,422.164

408.442

l,662,oll

1,283,282

1,115,193

1,707,819

Oct. 30

$81,333,812

$63,675,160

$55,751,097

$77,008,344

Oct. 30

386,720

329,660

242,450

562,320

;

408.442

470.449

20,996

32,485

21,790

53,111

52,553

588.539

573 183

and seed

for sugar

(tons)

beets

(tons)

—

——___

crop

(bushels)

Grapes (tons)
Cherries
(tons)

(tons) '
Cranberries
(barrels)

Apricots

(pounds)

329,660

242*450

562,320

Oct. 30

847,540

606,320

775,130

532,170

614 845

14,801

14,692

11,512

113.884

121,924

8,946

8.946

10,481

64,548

67,134

22,524

24,441

5,012

6,017

18,489

19,300

18,981

4,191

2,475

528,111

529,793

574.413

1,655,800

1,673,120

1,835,800

3,874

4,971

3,311

3.311

4 703

22,553

24,152

13,806

14,659

32,774

34,308

165,854

167,225

182 936

243,543

265,729

)

17 434

1,800,257

1,819,689

1,736.204

8,182

6,681

16,685

16,538

15,183

53,403

48,407

117.727

115.843

126,610

72,806

72.806

71.069

30,823

31,110

28,890

3,231

3,248

3,026

219

230

108

1,249

1,273

1,166

123,350

129,700

174,750

148

149

138

153

151

143

192

INDUSTRIAL PRODUCTION—BOARD O^ OOVERNOFS

OF
—

Seasonally

THE

FEDERAL

RESERVE

1947-49=-!00—Month

;

—•—

OUTPUT (BUREAU
Month of September:

METAL

OF MINES)—

Mine production of recoverable metals

1,265,980

661,920

761,920

1,150,030

uct. 30

18,3o5,530

13,772,o20

13,409,690

20,617,120

Copper

Oct. 30

19,631,510

14,434,540

14,171,610

21,767,150

Lead

Silver

(in

ounces)—.;
fine ounces)

fine

—

(in short tons)
(In short tons)

(in

in the

States:

(in

Oct. 30

Oct.:

adjusted

Unadjusted

386,720

39,543

47,015
!

113,884

242,172

(hundredweight)—
(pounds)

SYSTEM

Oc*. 30

282,294

20,996

13,806

————

—

——

Broomcorn

Pecans

4,429,154

1,117,430

12,550

Oct. 30

11,435,323.'

4,402,476

3,874
—__———

summer

Sugar

1,720,369

22,681

7,312,816

short

—

tons)

113,202

*136.775

162.532

1,673,326

♦2,245.778

2,650,329

25,937

*54,403

82 988

20,348

*21,648

19.360

28,874

*30,591

30,209

$14,081,000

$28,274,650

$17,347,000

100):

TRANSACTIONS IN DI¬
GUARANTEED
SECURITIES

TREASURY MARKET
Nov. 17

other than farm

figure.
1959,

—

and

foods.

118.9

119.2

Nov. 17

85.0

*86.4

8a.1

91.8

Nov. 17

104.9

105.7

106.1

108.8

Nov. 17

90.2

92.7

94.7

102.4

Nov. 17

128.6

128.7

128.5

126.8

119.1

RECT

AND

§Includes

961,000

against Jan.

Monthly Investment Plan.

barrels

1958 basis of

SPrime Western

Zinc

foreign

cru

140,742,570

sold

delivered

one-half cent a pound.

runs.

tons.

CBased

tNumber

basis

at centers

annual

147,633,670 tons
introduction of
where freight from East St. Louis exceeds
new

orders

not

capacity of

reported

since

■

)

A.—Month of October:

Net

sales

Net

purchases

UNITED
of Jan.

*26,081

44,218

(hundredweight)—

Peaches

1,678,594

30.986

thousands):

spring
spring

Zinc

foods

commodities

for

Sugarcane

products—

Processed

(in

(bushels)

(pounds)
Apples, commercial

Oct. 30

8,829

14,801,000

Hops

Oct. 30

35,123

;

field

United

—

Nov.

(bushels)

(pounds)

Gold
.

commodities-

Farm

191,304

560

COM¬

Total

Commodity Gcoup—
All

235,256

(tons

Sweetpotatoes

STOCK

(1947-49

dry

Tobacco

(SHARES):

Total sales

—

108,424
107,864

dry edible (cleaned—100 lb. bags):—

Late

sales—

WHOLESALE PRICES, NEW
LABOR

216,711
201,641

REPORTING

(bushels)

grain

Early

STOCK TRANSACTIONS

MEMBERS

November

lespedeza

Fall

Oct. 30

purchases by dealers—

EXCHANGE

185,022

(bushels)

Hay,

Late

sales)—

sales

Round-lot

114,000

613,073

OF AGRICULTURE—

Hay,

Pears

value

Other

823,177 J

173,000

Winter

COMMISSION

by dealers-idustomers'

orders—Customers'

sales

463,000

October:

—

Early

purchases)—!

Round-lot sales by dealers—
Number of shares—Total sales
Short

526,000

9,717,782

CROP

—

DEPT.

(bushels)

Potatoes

1,073,690

Oct. 30

bales)

(bushels)

Soybeans

STOCK

—

short sales

EXCHANGE

(customers'

Customers'

Dollar

——

value

Odd-lot purchases

.1,008,199

(bushels)

all

Peanuts

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

961,000
577,000

COMMERCE):

(DEPT.

(bales)
all (tons)
wild (tons)
alfalfa (tons)
clover and timothy

Peas,

of members—

account

purchases

Total

73,820

637,600

Oct. 30

.___

...

for

230,320

Oct. 30

Beans,

floor—

sales
transactions

3,037,450

floor—

Cotton

Hay,

(bushels)
(100
lb. bags)-

Hay,
Hay,

1,711,170

sales

$1,621,272

699,000

bales)-

(bushels)

Rice

109.69

1,834,050

Short

$1,538,000

794,000

__■

month

Flaxseed

431,670

Oct. 30
-

spring
(bushels)

285,609

sales

$1,494,000

tons)—

(DEPT.

Other

332,662

Other

round-lot

53,445,172
531,936,121

(net tons)

2,000 pounds)
end of period

(running

spring

343,680

Total

$585,381,293

58,657,111

557,004,069

,..15,047

(running

Winter

319,477

1,968,230

Total

$615,661,180

136,353,039

568,826,960

pounds)

all

316,670

Total

$705,179,999

;

PRODUCTION

Wheat,

331,839

2,209,290

Other

23,985,481
117,683,636

;

(net

(tons of

GINNING

Corn,

Nov. 14
Nov. 14

495,639

44,101,927

34,194,829

128,538,461

Nov. 14

590,870
2,281,910

Short

'55,987,084

38,385,782

anthracite

tons)

PRODUCTION

361,161

2,844,120

Total

42,114,041

148,684,470

MINES)—

America

.__

BOARD

304,154

Oct,. 30

;

Nov.

CROP

396.2

Oct. 30

sales

tons)

America

2,000

specialists in stocks in which registered—

transactions

115,980,207

EN¬

—

copper stocks at

COTTON

MEM¬

(net

Sorghum

ACCOUNT

FOR

Refined

Oats

Central

(net

Durum

sales

Other

38,974,865

Refined (tons of 2,000 pounds)
Deliveries to fabricators—

4.56

Short

sales

104,068,383

.102,172,473

production in U. S. A.—
(tons of 2,000 pounds)

Crude

Nov. 14

Total purchases

sales

114,635,222

INSTITUTE—For

Copper

Nov. 24

„

and

MERCE:
4.25

TRANSACTIONS

Other

___.

(BUREAU

Undesginated

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS

Short

42,192,498

113,217,678

12.000c

Nov. 24
Nov. 24

activity

AVERAGE^-xO

Europe
Asia

4.85

INDEX—

South

4.24

—

North

4.84

—

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

Total

of September:
exports
of
Pensylvania
tons)

13.000c

101.750c

(tons)

transactions

109,842,861

69,364,311

Month

NATIONAL PAPERBOARD ASSOCIATION:

Other

$27,526,300

93,955,907

57,535,278

municipal

EXPORTS

29.425c

101.125c

Group

COMMODITY

Total

$20,010,501

171,763,777

COTTON

—

and

13.000c

.Nov. 18

Group

Transactions

—

CONSTRUCTION

Federal

COAL

;

$953,899,000$!,254,960,000

$31,306,500

construction

28.550c

24.700c

;

1949

242,354,000

NEWS-RECORD —Month

construction

Public

13.000c

12.000c

Group

ROUND-LOT

.____

construction

32.025c

24.700c

Baa

(tons)

13.000c

4
Nov. 24
—_—._—————.—-—Nov. 24

(tons)

245,580,000

(000's omitted):

30.300c

12.500c

Aaa

Unfilled orders

116,650,000

233,932,000

____

—

ENGINEERING

28.675c

24.700C

U. S. Government Bonds

Percentage of

States—.

City

32.500c

12.500c

—

Group

Production

—

United

34.625c

13.000c

—

Orders received

—

October

AVERAGES:

DAILY

Average corporate

MOODY'S

30,250,000

45,000,000

••

——

________

York

CIVIL

MOODY'S BOND YIELD DAILY AVERAGES:

Industrials

55,748,000

$945,072,000

i
_

34.725c

24.700c

Group

Utilities

279,622,000

16,509,000

35,750,000

Central

Total

260

Nov. 18

■

Baa

Public

353,638,000

Central

Pacific

12,579,000

Nov. 18
Nov. 18

—

99.5% )

Railroad

$246,187,000

300,873,000
15,970,000

(net

Nov. 18
Nov. 18

—

Group

$316,226,000

290,159,000

CITIES—Month

Mountain

QUOTATIONS):

Industrials

INC.—215

DUN

—

East Central

14,506,000

250

$304,460,000

—

Atlantic

State

287

Ago

between

—;

VALUATION

Atlantic

South

Nov. 17
—Nov. 17
Nov. 17

——

~—

Utilities

England

GINEERING
155

Year

Month

of September:

West

$261,000,000

265,700,000

29,700,000

DUN

—

•

PRICES

shipped

PERMIT

BRADSTREET,

554,218

$444,300,000

438,000

—

——

and

.___

BUILDING

644,531

518,499

8,935,000

—

York)

(New

Public

33,440,000

■

139,800,000

corporate

Railroad

32,764,000

Nov. 19

—

at—

BOND

Aaa

32,699,000

232,300,000

U. S. Government Bonds

Average

6,744,000
169,309,000

$372,100,000

(primary pig.

tin

MOODY'S

5,999,000
178,732,000

Nov. 21
INDUSTRIAL)

AND

at^.

(East St. Louis)

Straits

6,086,000

175,800,000

credits..

of that date:

Month

25,023,000

countries

Total U.

(delivered)

;

stored

goods

foreign

copper—

Louis)

Aluminum

5,992,000
176,400,000

warehouse

exchange
on

are as

31:

Total

13
13
13
13

54,200,000

ton)

refinery at
refinery at

Export

11,796.000

Nov. 19

Domestic
Lead

12,083,000

Domestic

either for the

Latest

PRICES:

(per gross

Electrolytic

12,154,000

Nov. 14
Nov. 14

—

(per lb.)_—:

PRICES

Oct.

are

BANK

—

shipments

Based

2,393,000
12,798,000

—Nov. 19
,

100

Pig iron (per gross ton)—

METAL

2,157,000

Nov. 19

COMPOSITE

AGE

RESERVE

Outside New York City
—

(in 000 kwh.)

(COMMERCIAL

BRADSTREET, INC
IRON

YORK—As

OUT¬

Dollar

INSTITUTE:

ELECTRIC

FAILURES

7,755,000
28,095,000

INDEX—FEDERAL RESERVE

STORE SALES

SYSTEM—1947-49

EDISON

7,759,000
28,111,000

2,267,000

MINES):

(tons)

Pennsylvania anthracite (tons)—I—:
DEPARTMENT

7,681,000
27,575,000

2,215,000

Nov. 19

municipal—

Federal

FEDERAL

—

Domestic

South

construction

State and

ACCEPTANCES

•

construction—

Public

6,967,885

ENGINEERING

—

construction————

Private

6,839,025

•17,892,000

Nov. 14
of cars V—Nov. 14

freight loaded (number of cars)
Revenue freight received from connections (no

Total

DOLLAR

NEW

New

Revenue

CIVIL

6,898,975

RAILROADS:

AMERICAN

Nov.
Nov.
Nov.
—Nov.

—

Residual fuel oil (bbls.)

ASSOCIATION

1,988,000

27,839,000

—

6,375,825

Nov. 13
Nov. 13

—

of quotations,

cases

Exports

(bbls.)
—1
Residual fuel oil output (bbls.)—i_;
—--—_
■_
Nov. 13
Stocks at refineries, bulk terminals, in transit, in pipe lines—
and

371,000

or,

Imports

—

oil

*2,233,000

(bbls. of

output—daily average

Gasoline

Finished

date,

BANKERS'

INSTITUTE:

PETROLEUM

oil

Crude

Dates shown in first column

STANDING

ingots and castings

AMERICAN

production and other figures for the

cover

73.7

Equivalent to—
Steel

•.

(2233)

latest week

Latest

-m

The Commercial and Financial Chronicle

Indications of Current

•«.

""I

STATES

BUREAU

EXPORTS
CENSUS

—

AND

IMPORTS

Month

Sept.

(000's

omitted):

I
I

Exports

$1,427,000

$1,396,700

$1,360,900

Imports

1,391,800

1,189,800

1,074,000

The Commercial and Financial Chronicle

(2234)

been

abandoned.

apparent

RAILROAD SECURITIES

agement

and

latest

development

field

merger

the
to

came

light recently with the
of

ment

announce¬
studies of a

and

talks

consolidation by the

Chicago, Rock
Island & Pacific and the Chicago,
Milwaukee, St. Paul & Pacific.

the

the Norfolk & Western

Virginian

little

where

time

taken to effect the consolida-

was

Rock Island-St. Paul Merger Talks
The

view

lieved that rapid progress will be
made.
This was the case in the
merger of

railroad

thinking of the man¬
of the roads, it is be¬

between

Now Disbro & Co.
(Special to The Financial Chronicle)

Minneapolis and St. Paul
WILLOUGHBY, Ohio —Disbro &
Moines to Co., 4076 Erie
Street, has been

duplicate mileage

the

would

roads

two

the

There had been negotiations be¬

tween

the

the Chi¬

Paul and

St.

Western as long ago
1954. However, after the change
management
of
the
North

largest which has come to
light in recent years. The Great
Northern-Northern

Pacific

cago & North

solidation

still

while

between

that

idea was
It is un¬
derstood the Rock Island has been
considering the possibilities of such
since last June.

merger

Both of these carriers have had

checkered

DIVIDEND

1948.

time

one

has

Much

the two roads

troubles of
traced

1945.

the

in
their territory which cut into the
earnings of the farm districts.
This, of course, was due to gen¬
eral depressed business conditions

point

from

The

Board

has

Directors

cents

DIVIDEND NOTICES

dividends,

1959,

Directors

December

of record at

F. VANDERSTUCKEN, JR.,

eighth

the

about

transportation

declared

REGNER.

meeting

line

Paul's

December 21,

was

declared

Seattle

Milwaukee

and

well

Tacoma, Wash.,

Pacific

ports.

Coast

business

17,

ber 1,

1959

Secretary

BOND AND SHARE

DIVIDEND NOTICE

COMPANY

stock of this

common

Quarterly cash
cents per

and

November

On
of

per share on
dividend of 40 cents

Common
share

Stock,
the

the close

cember 31,

record

the

Fuel

and

206
1959

COMPANY

capital stock of

December

stockholders

the

per

28,

share,
1959,

record

business

at
on

stock,

series

R. E. SCHNEIDER

Secretary and Treasurer
Broadway, New York 4, N. Y.

Secretary

UNITED CAS
SERVING

THE

SUNDSTRAND
•

regular quarterly

shareholders

record

December 9, 1959.

per

G.J. LANDSTROM

Stock,

Vice

President-Secretary

the

December

clared

Rockford, Illinois
November 17, 1959

Southern

November 19,1959.

Edison

California
Company

Secretary

FUEL

AND

HOME AND

SERVING

authorized

TENNESSEE

will

their

share.
pany

agent

record

the
an

per

value preferred
payable Decem¬

are

the close

common

option to

who
stock

sell

the

Midland

York

handling

has

such

are

en¬

and

for

such

holders.

sales

the

account

The

purchases

period

round

out

full

Trust

may

Com¬

appointed
purchases
and
record

which

made

11,

will

of,

1959, to
at

27 cents per shore.

the

The above dividends

3, 1959.

able December 31,

EXTRA

—

dividend

stockholders

DIVIDEND

CASH

$1.12

share,

extra

dividend

twelve and one-half

mailed

(12j^)

share was declared
payable January 8, 1960, to

ber 8, 1959.

stockholders of record at the

January

I960

BIRD, President

cents

cember

to
shareholders of record Decem¬

payable

will be sold and the
cash proceeds forwarded to the
holders of
fractional-share interests. «

McGREW, Secretary

250 Stuart

St., Boston 16, Mass.

Our stock is listed on the
New York Stock Exchange.

Symbol is EFU.

will

De¬

from the Company's

ber 31.
P. c.

hale,

November 19, 1959

3, 1959.
Broadway

pay¬

record

Checks

close of business December

are

1959, to

office in Los Angeles, Decem¬

per

November 19» 1959
^

No. 51

close of business December

of record

CUMULATIVE
PREFERRED
STOCK
A regular quarterly

STOCK,

4.32% SERIES
Dividend

John G. Greeneurgh
Treasurer.

New York 6, N. Y.

if
'if

II
ffi'

No. 202

CUMULATIVE PREFERRED

ex¬

i960,

D. C.

was

stockholders of record

4'/2%

such

on February 11, i960. Any fractionalshare Interests remaining
outstanding after

February

able December 18,

regular
quarterly dividend of 40 cents
a share,
payable December 28,
—

December 8, 1959.

been

STOCK

thirty-one
(31 % p) cents
declared pay¬

frac-

nearest

and

DIVIDENDS

dividend
fraction¬

PREFERRED STOCK

A dividend of

and one-quarter
per

COMMON

DIVIDEND

FUEL

1959 to shareholders

sales, which will be made at the instruction
of,

Dividend

65 cents per shore;

interests

their

to buy
sufficient
to

Marine

New

cents

fractional-share

dividend

The

value

stockholders

interest

stock

cents

par

AND

y.%

ORIGINAL

GAS
CASH

payment

dends:

November 19, 1959

the

$50

EASTERN

ASSOCIATES
declared
62 Yz

record

December

given

for

also

68%

$50

receive

com¬

January

the

following quarterly divi¬

•.

Friday,

percent

series

.ional-share interests
al-share

the

CORPORATION

Colorado

today,

dividends

The

Board of Directors has

CORPORATION

INDUSTRY

WITH ESSENTIAL BASIC PRODUCTS

pire

December 7, 1959.

B. M. BYRD

•

December 10, 1959.

B. M. Betsch,

BERGEN,

dividend

and

holders

result

the

common

titled

has today declared a dividend

payable

Directors

These

the par value of $50 per

record

of business

November 24,1959

8,1959.

1959.
of

These

business

payable

close of business

De¬

business

stockholders

quarterly

the

ber

($1.00)

stockholders of

at the close

Secretary and Treasurer

declared

dividend

stock.

The Board of Directors of

its

Corporation

20th,

Board

per

Directors

common

regular

ncuit^HuToii

Common

shareowners of record

CORPORATION

Iron

preferred

Dollar

(30c')

cents

the

4, 1959.

stock

The

AnacondA

One

to
%■

Dividends Declared
Board

December 1,

/l\

thirty

1959 to stockholders of

COLORADO

The

1960

ANACONDA

payable

are

the

IRON

mon

THE

The

THE

declared,

Secretary

November 25,

Corporation,

DIVIDENDS

November

NO.

Stock of the

payable January 2, I960,

TINNCSSU

cents per

were

NEUMANN,

DIVIDEND

November 23, 1959

of business
P.

(37J^)
the Common

2?o stock dividend, both pay¬

Directors has
quarterly dividend

payable December 29, 1959,

dividends

1960, to stockholders of rec¬
December 11, 1959.

payable January 2,
ord

Stock,

per

N. Y.

per

extra of

plus an
Common

declared

five

dividend
the Preferred Stock

43% cents

and

and one-half cents

quarterly

able December 19, 1959, to

The Board of

Corporation:

dividend

Stock dividend of two percent
Ail

York, N.Y

Notice of Dividend

per

NOTICES

1959

25,

declared

date

dividend of thirty-seven

dividend of 2 56 per share on
the common stock, and a

today de¬

Extra cash dividend of five cents

to other
The Rock
as

New York 20,

Plaza,

Board of Directors
this

DIVIDEND NOTICE

Corporation

New

W. HELME COMPANY

GEORGE

has

1959.

(Dmmercial Solvents

December

Rockefeller

Tegtmeyer,

de¬

ELECTRIC

The Board of Directors has

Omaha to Denver and southwest¬

Dividend Notice
The

Decem¬

LOUISIANA

BHREVEPORTr

share on the Preferred
Shares-First Series, payable De¬
cember 15, 1959 to shareholders
of record December 4, 1959.

The Board of Directors de¬

miles extend
Chicago westward through

DIVIDEND

30c per

•

Island's line of 7,600
from

Lie. has
cash dividend #4,'of

CORPORATION

Chicago

from

Services,

Food

Super

1959, to stockholders of record at
close

CORPORATION

Cor¬

clared, payable on

PAUL B. JESSUP,

Northwestern

extending

Directors

cash distri¬

the

miles

10,600

the

covers

states,

bution of $1.50 per

clared the following dividends on the

St.

Board

Wis.

November

UNITED GAS

NOTICE

DIVIDEND

1959

of the Board

poration held today,

Secretary-Treasurer

1959

WHOLESALER

York, N.Y.

Directors of Kennecott Copper

regular
quarterly dividend of fifty cents
(50c) per share and a year-end dividend
forty-five cents (45c) per share on the
capital stock ($3 par value) of the Corpo¬
ration, payable December 15, 1959, to stock¬
holders of record November 27, 1959.

country.
The

Secretary

Milwaukee,

the

largest
in

company

D. W. JACK

KENNECOTT COPPER

November 20,

has

1959.

Chicago 3, Illinois

Wm. II.

At
of

close of business

at the

December 1,

the

Company's

the

payable

stockholders

DIVIDEND
Board

the Common Stock

Company, payable Janu¬

record

Street,

today

dividend of 48 cents

4, 1960 to stockholders of

ary

CORPORATION

The

per

of the

SUPER FOOD SERVICES, INC.

Directors

Board

The

39 South LaSalle

NOTICE

DIVIDEND

declared

per

161 East 42d Street, New

stand¬

asset

COMPANY

are

November 13, 1959

form a railroad of
more
than 18,000 miles of track
and total assets of $1,172,000,000,
it

Officers

UTILITIES

Hayes, President; W. M.

The

the close of business November 30,1959.

XBriggs&Stratton);

would

making

engage

declared

throughout the country.
If the two systems are unified,

they

been

Ocean

President

can

conditions

drought

341

Secretary.

shown

1935

business.

CORPORATION

was

a
high degree of
efficiency despite the
low traffic density on its lines.
The St. Paul operated in bank¬
ruptcy from 1925 to 1927 and
again was under court protection

Kelley, Treasurer.

Consecutive

capital stock outstanding and entitled to

operating

from

153rd

Quarterly Dividend

10,020,000

NOTICES

Since that time

different carriers.

Building

COMPANY

study,
Pennsyl¬

the

BRICCS & STRATTON

the road be dis¬
membered and parts sold to eight
it

con¬

under

15,

that

proposed

Center

offices

November 20,

it remained

1933 where

until

with

Invest¬

has

TEXAS GULF
SULPHUR

receive

bankruptcy from 1913 to
1917 and was forced into reorgani¬
zation

—

NOTICES

The Rock Island

careers.

DIVIDEND NOTICES

DIVIDEND

dividend

was

vania and New York Central has

Wegtern in 1957, the
completely abandoned.

Calif.

Corporation

produce

produce a much stronger savings of about $30,000,000 annu¬
competitive system. It is believed ally in operating costs.
that a plan of merger and terms
The proposed merger of the St.
will be forthcoming in the near Paul and Rock Island is one of
,

BEACH,

Sales

formed

formed to continue the investment

considerable

and

future.

ment

the Gulf Coast.
is

Thursday, November 28, 1959

Corp.

southward through Des
There

Hayes, Vice-President, and B. W.

dupli¬
of
Robert
M.
Disbro.
Committees of directors of both cation of mileage by both lines, business
of the roads are considering the particularly in the mid-west. The Officers are Mr. Disbro, President
Rock Island reaches Minneapolis
feasibility of a plan.
and Treasurer, and E. K. DeVan,
A merger of the two properties over St. Paul's lines. Rough esti¬
Secretary.
mates are that the consolidation
would
eliminate
an - estimated
1,000 miles

LONG

James C.

erly through Kansas City to Santa

(Special to The Financial Chronicle)

securities

tion.

Rosa, N. M., and also south to Fort
Worth and Dallas. It also operates

Inv. Sales

Treasurer

Volume

Number 5902

IP"]

The Commercial and Financial Chronicle

...

usually designated in the

there

was

brokerage house circles, our firm

ment

fund

usually looks for able, fast step¬

tronics

The Security.

ping

I Like Best

Continued from

earnings will occur
the acquisition.

self

management,
who can

operating

backed by

financial

result of

has

one

invest¬

the

elec¬

Divesting him¬
other interests, he

most

Electronics

Investment

an open end mutual fund.
Started with a public sale of some
$10 million of securities, this fund,
through price appreciation and

the unusual
situation of having the head of the
company, not only experienced in
Reeeat Developments
the operations of electronics com¬
At the present, there are ap¬
panies, but also in money man¬
proximately 240,000 shares out¬ agement, and the money for many
standing. If ail debentures were months' expansion already on
converted, and all options exer¬ hand.
cised
there
would
be
roughly
In short, one cannot understand
ECC,

for

devoted

Corp.,

operating management.
a

need

industry.

formed

men

keep the money coming in to fi¬
nance the expansion needs of the

page

(2235)' 43

sale of additional

shares, now to¬
later, some $30
million in assets and has probably
tals,

♦

four

value

Thus, in
the
Summer
of
1959, we find
the investment management team
headed by Charles Salik peculiarly
equipped to form Electronics Cap¬
ital Corp., both from the knowl¬
edge of electronics and finance.
year

1958.

280,000 shares outstanding. How¬ Electronics Capital Corp. without
ever, at its last regular meeting first understanding Charles Salik,
the Board of Directors announced its President. The son of a wealthy
a 100% stock dividend which will ; San
Antonio, Tex. .family, Charles
result in a two-for-one split. The ! Salik was the youngest ham oper- Other directors and advisers of
Investment
Board
also,
authorized
another, i ator ever licensed at the age of Electronics
Manage¬
dividend payment of 50£ a share j eleven.
Later he accumulated a ment Corp. include:
which brings total payments for l B.S.E.E. in electronics engineering Richard T.
Silberman, Executive
the yearrLto $1.00.
The stock is from Yale University and then
Vice-President. (Formerly Pres¬
listed on the American Stock Ex¬ went into business.
Four years
ident of KIN TEL, a division of
change.- '
1 V
\
Cohu Electronics,
ago, aged 29, he already had made
who devel¬
a
small fortune for his own ac¬
oped a subsidiary from a peanut
count by founding or purchasing,
WM. H. TEGTMEYER
stand operation of under $100,and
then developing
radio and
000 to $8 million annual sales.)
President, Wm.H. Tegtmever & Co.,
television stations;
later selling Clarence
Weatherall, Chief Tech¬
Chicago, III.
them at substantial profits. He also
nical Officer.
(Just resigned as
Electronics Capital Corporation
was involved in other electronics
Chief Engineer of the Western
situations.
Like Henry
Ford
I,
Electronics
Division of Stromberg-Carlson.)
Capital
Corporation
Charles Salik had the ability to
has:
Dr.
Neil
H.
Jacoby, Director.
use
his technical (electronics)
(1) The usual growth features know-how in such a
(Dean, Graduate School of Busi¬
.

that

most

for in

special situation.

look

way that it
produced operating and financial

i 1 y
in
loans which
ma r

1955,

decided

Charles Salik

Administration, University

ness

success.

Monies to be invested pri¬

(2)

•

managers

money

Louis

dent.
Bank

California.)
Director.

(Part-

group

bidding to bid

tively

and Director.

(Partner, Driscoll
Woolley, Attorneys at Law.)

effec¬

both governmental and

civilian

contracts.

already

done

this

fact

has

certain

in¬

stances.

Growth Features

Dr.

Joseph M. Pettit, Technical
(Dean of the School of
Engineering, Stanford Univ.)

^Electronics Capital Corp. has
has several loans totaling about
$3,500,000 in the mill waiting finalization of legal and technical
details. If these are on as profit¬

Adviser.

Current Happenings

Early in October, ECC made its
first
purchase, $750,000 conver¬

able

tible 8% debentures of The Potter

Instrument

000 if needed

also

in the future.

supplied

"know-how"
Potter

with ain agree¬
additional $250,-

Co.,

ment to loan

certain

and

derwriting

houses

have

offered to underwrite

loan

share for ECC capital

re¬
-

un¬

I feel that ECC

feature

saving

already

considered

usually

for the
growth situations.

maturing of

necessary

has

first,

under

the

ond,

ECC's interest worth

$5,000,000 not just the $750,000 originally
invested.
Naturally, until some
stock of the company is sold to
the public in such situations as
The Potter Instrument Co., there

buying debt securities with

tion:

some

quoted market for the value

the

equity

position

ECC.

However, I do not believe this to
be

matter of importance because

even

tax

Small

turned down, good mer¬

double headed position of

version

feature

into

a con¬

equity;

and

third, the usual basic growth fea¬
tures

that most money

look for in

managers

growth special situa¬

(1) Good operating management
(as outlined above).

(2)

though the above underwrit¬ work

was

Business Administration Act; sec¬

in the company which would make

The

Co., one can
true asset value of $40

period

year

stock sale

the

Instrument

stock long before the two to five

technical

management with the
certain large stock

basis

Potter

project

to $50 per

ECC

contacts to The

sult "that

ing

Bernard Koteen,

Rice, Senior Vice-Presi¬
(Director, First National
San Diego.)

companies with dove-tail¬
ing products and services in each
group so as to enable them by

Roger S. Woolley, Secy .-Treasurer

years

in the

tronic

Law.)

the
best
record
of
any
mutual
fund in per cent increase in asset

Burt, Attorneys

Koteen &

ner,

Good tools with which

($16 million).

(3) Operating in

good industry

(electronics).

chandise is always salable.

will

Mr.

DIVIDEND NOTICES

a
conversion
carry

Salik

that

indicates

stand¬

point,

DIVIDEND NOTICES

they

INVESTMENT COMPANY

have their

cake

LISTED ON THE NEW YORK

right

now'with

adding sev¬
dippers

The Board of

of "a la mode"

end'dividends:

eral

future.

(3)
ment
in

Small Business Invest¬

the

under

Act

1958.
loan

first

its

about

For example,
$750,000 of

month ago to The Potter

Instrument

Company,

al¬

has

ready developed a paper profit of
about $3,200,000 or $2 per share on
-1,800,000

$1.35

taxed

Federal

taxes,

income

loan

the

per

share payable in stock

shareholder from

each

net

was.

left

cash at the option

capital gains realized

ber
per

are

sold.

would be only one tax
Aims

and

set

its Common Stock, payable December 14, 1959,
of record at the close of business December
franklin

William B. Viall,

Financial Report

Available

Secretary
15 1st

Request

STREET, NEW YORK 5, N. Y.

•

dividend

Room 1

the

Common

Stock of C. I. T. Financial

The com-

Corporation,

payable Janu¬

ary 1, 1960, to stockholders
of record at the close of busi¬

December

ness

10,

1959.

The transfer books will

FINANCIAL

paid.

Corp.

quarterly dividend of $0.65
cash has been

per share in
declared on

not

close. Checks will be mailed.

CORPORATION

Objectives

Capital

k.foster,Secretary

1959.

could

Electronics

payable December 24, 1959 to stock¬

either pay out this
'profit as a dividend or pay the
'25% capital gains tax and keep
-the funds, but in any case there
*pany

to stockholders

after

when

Novem¬

18,1959, declared a quarterly dividend of sixty cents ($.60)

g l059-

holders of record December 2,

48 WALL

The Board of Directors of Cities Service Company on

conversion

from

position

equity

share in cash, being the remaining undistribu¬

ordinary income realized during 1959, and

Both dividends

every stockholder no matter what
his
tax
bracket would have at

$1.50

per

during 1959.

regulated investment company

least

Dividend Notice

If the company

shares.

elect

should

$0.37

ted net

situation

favorable, tax

Managers has declared the following year-

Tegtmeyer

the

Cities Service

STOCK EXCHANGE

possibility

Available for purchase

A CLOSED-END DIVERSIFIED

in¬

the

vestors

can

(4)

the right time—NOW.

into

feature

equity so that
from

ECC

plans to assemble groups of elec¬

JohnKuhn,
Treasurer

was

in June of 1959 with some

November 25,

1959.

$16 million of capital (after allow¬
ing for selling commissions on se'curities).
Its principal aims and

objectives, under the Small Busi¬
ness
Investment Act of 1958 are
stated in its prospectus:

•as

(1)

pally

"To provide capital,

through

the

CONTINENTAL

princi¬
of

purchase

convertible debentures, to selected
electronics
the
sess

companies

which

BAKING

COMPANY

Preferred Dividend No. 84
The Board of Directors has declared this day a

opinion of management pos¬
potential for investment ap¬

$1.37'/2

per

quarterly dividend

the outstanding $5.50 dividend Preferred

close of business December 4,

specialized management counsel¬
ing services, including financial,
technical, marketing and manu¬
facturing planning, and thus to
attempt to protect and enhance its
investments in those companies.

The Board of Directors has declared this day a

"To sponsor a group devel¬
opment program, in order to assist
client
companies
with comple¬
mentary facilities jointly to un¬
dertake government and commer¬
cial electronics contracts otherwise
(3)

dividend, for the fourth quarter of the
on

221st

special

PREFERRED DIVIDEND

the outstanding

year

quarterly dividend of

Company,
holders

V/i%

($1.50 a share) has been

Preferred Stock of The American Tobacco

payable in cash on January

of record

1959. Checks

2, 1960, to stock¬
December 10,

the close of business

ness

the

close of bush

December 4, 1959.

The stock transfer
not

books will

be closed.
WILLIAM FISHER

will be mailed.

November 24,19S9

regular quarterly

1959, of 55tf per share

Common Stock, payable December 22, 1959, to
holders of record of such
stock

declared upon the

©A. T. Co.

situation such as
Electronics Capital Corp., or ECC,
-

1959.

Common Dividend No. 59

beyond their individual capabili¬
ties."

record at the

Stock, payable January 1, 1960, to stockholders of

preciation.
(2) "To render to the electron¬
ics companies in which it invests

Harry L. Hilyard
Vice President

and Treasurer

TREASURER

The Commercial and Financial Chronicle

(2236)

Thursday, November 26, 1959

WASHINGTON AND YOU

1959—Foundation

for

nomic

Education, Inc.,
ton-on-Hudson, N. Y.
Measurement
ritorial

behind-the-scenes interpretations

Sea

the

—

good-looking woman
in

night
Washington

dress rose the other

dinner

downtown

she

hotel,after

fellow

her

and

prominent

told

him
in

that

Westerner once
"nearly every
wanted

had

Utah

her."

marry

The

was

woman

Ivy Baker P r i e s t, a miner's
daughter from Bountiful, Utah.
30th

The

United

the

Treasurer

and
the
most
official in the

States,
feminine

famous

Administration,

Eisenhower

Mrs. Priest likes her job and she

it for at least an¬

wants to keep

other five years or so.

-•

she

United

the

Treasurer

States

individuals

and

various

by the

foreign governments, but she is
also
responsible for the hun¬
dreds
of
millions
of
checks
issued

each

urer

The

..is

year

this

United

Priest

of Ivy Baker

name

household

the Treas¬

country.

States

the

name

ap¬

word

her

on the currency circula¬
along with that of Secre¬
tary of the Treasury Robert B.

pears

tion

Anderson

from

predecessor

Texas

his

and

Secretary

former

George Humphrey.
GOP

Campaigner

Mrs.

married

who

Priest,

wholesale

furniture

dealer

Utah, is

a great campaigner for
Republican Party and she
is tuning up now to take on
some
heavy campaigning dur¬

the

ing

coming year. Perhaps
thoughts she brought out
night at the Statler

the

some

the

other

Hotel

the

before

Society

Business Magazine Editors,
will

toss

gatherings
She

dollar
and

Republican

and

President

sound

"You

positive

big

boss,

Eisenhower, who

restated

saying:

economy,

from her

re¬

old

military

can

nothing

except

from

firm

base." Mrs. Priest is emphasizing
thrift in her talks. She comes
from

long

who

thrift

make

part of their
and

line

Mormons,

of community

way

spiritual life.

She told the

Society of Busi¬
Magazine Editors that her

ness

family

only

not

did

not

where the next dollar

know

was

com¬

has

had

some

ministration

failed

has

had

her

way

not

only would have
budget in 1960, ..but

balanced

subse¬

quent years.
"Nations

1956 and

thrifty people in
the
industrial
history of the
world," said Mrs. Priest, "have
typically been countries noted
for

growth

Thrifty
people.
sound

and

people

responsible

are

They

and

progress.

tend

responsible

ment, sound fiscal policies, and
dependable
Mrs.

currencies."

Priest

went

tell

the Business Paper Editors that
a

thrifty Nation

with

poor

thrifty

resources,

people

abundant

may grow even

"but

blessed

resources

with

has unbeat¬

able possibilities."

Perhaps it would be

good

1880-

Bank

York

45,

—

New

Russia?

Averell

—

Schuster,
630
Fifth Avenue, New
20, N. Y. (cloth). $3.00.

Report

for

States

second

the

resignation

States

this

taken the po¬

growth in the United
be

can

government

helped

keenly

maximum

growth."
Ivy Baker

full

sting

that
the
currency
printed by the Bureau of En-^
graving carry the size of the
only on

other side be sold to advertisers.

could pay off
debt," the author wrote her.

our

"we

way

famous

woman

!the

United

States Government, not
only has the confidence of a
professional football quarterback
in the Eisenhower

team, but she

is confident that the Grand Old

Party leaders

are

the

country off

for

the

going to get
the right foot

Sixties.

Keen Sense of Humor
While

ner

should

many

of the

foreign

,■

Vlstart

days

the

ago

con¬

Commerce

few

will

money

mid-1960,
$485

should
lion

for

has

(now

billion

year)

for

consumer

been

about

rising

$500

and

sipped wine
kings and queens and am¬

She

has

that

keen

she

The

sense

invokes

man

lot

present,

that

Priest
She began

the

The

male

Mrs.

woman

other

speaker.
■with

facetious
the

Growth,

Hearings

Price

and

before

Committee

good

column

intended

flect the "behind the

scene-

was

mittee

Automation

and

ergy

Economic Committee of the 86th

the nation's Capital
not coincide ivith
the "Chronicle's" own views.]
may

nancial Development Co., Inc. has
opened a
branch office
at
426
Alvin

offices

the

National

the

Foreign

FortyTrade

1100 Main

Street.

Company,

Street.

Mc¬

—

Inc.,

New

330

York

(cloth), $7.50.
Solution of Our Wheat

the

Canadian

—

American

National

Master

Tax

Guide,

I960—

Commerce Clearing House, Inc.,
4025 West Peterson Ave., Chi¬
cago

46, 111. (paper), $3.

Wanted—A
More

Working Environment

Conducive

Canadian-

American Trade in Natural Gas

Canadian

American

Com¬

mittee, National Planning As¬
sociation, 1606 New Hampshire
Avenue, N. W., Washington 9,
C.

(paper), 250.

Freedom—Catalogue

of books and other publications

Attention Brokers and Dealers:

TRADING

her

Indian Head

declaration

most

MARKETS

Botany Industries
Mills

Official Films

beautiful

Southeastern

Pub. Serv.

attending the meet-

had

woman

enhower

Rowsome, Jr.

Planning
Association, 1606 New Hamp¬
shire Avenue, N. W., Washing¬
ton 9, D. C. (paper), 30 cents.

6, N. Y. (paper).
Literature of

—
University of
Press, Seattle 5, Wash.,

Committee

Joint

(New York, N. Y.,
16, 17 and 18, 1959)—Na¬
tional Foreign Trade
Council,
Inc., Ill Broadway, New York

conducting a' securities business

from

Nov.

VERNON, 111.—John C. Hoit

Freeway

36, N. Y.

Convention

Mogil.

Business

Urban

42nd

Towards

—

J. C. Hoit Opens
MT.

Declaration

Sixth

Market Street under the direction
of

Resources

Congress of the United States—
Superintendent of Documents,
U.
S.
Government
Printing
Office, Washington 25, D. C.
(paper), $1.25.
Final

Central

Frank

West

En¬

pretation from
or

the

Surplus Problems—A Statement

and

may

Fi¬

and

Graw-Hill

the
talk

caught many of
was the

by surprise. She

the

—

—Hearings before the Subcom¬

inter¬

the

Market—•

They Laughed When I Sat Down

(paper), 650.

re¬

Seattle

States—Superintendent of Doc¬
uments, U. S. Government Print¬
ing Office, Washington 25, D. C.

the

$5.00.

the

"VIPs"

present.

Treasury

Carl Marks
FOREIGN SECURITIES
20 BROAD

But Mrs. Priest and Secretary
of the Treasury Anderson, boss
of

—

Economic

in this hall tonight."

men

Mrs. Piest

only

Levels
Joint

for Economic

Development

York,

Energy Resources and Technology

occa¬

ins began looking all round to
see the expressions on the other
women's
faces.
Sure
enough
them

New

Significance

captains of industry

were

I This

Action

District

year,

of hu¬

introduce

who

her the other night recalled that
at a big dinner meeting when
and

Employment,

post does not carry

bread

Bank

the 86th Congress of the United

16,

Studies

Signifi¬

credit,

Columbian Fin. Branch

sion.

Reserve

bil¬

million

industry has

Its

New York 45, N. Y. (paper), 600.

month, is expected to continue
if the auto

and

effi¬

reaction

Research, Dept. FC, P.
O. Box 124, Newton Center
59,
Mass., $2.95.

Madison Avenue,

Velocity

Liv¬

nancial

cance—George Garvy—Federal

1960.

CAMDEN, N. J.—Columbian Fi¬

mor

Deposit

from

about $505

slightly

Demand

rate

$490

Eco¬

New York 16, N. Y. (paper), $2.

tighter before
that the Gross

Product

average

which

get

and

National

She not only dines at the White
House on occasion, but she has
with

Research, 261

predicted that economic expan¬
sion will continue through
1960,

chemical

Institute

nomic Indicator—Gerhard Bry—
National
Bureau
of
Economic

leading experts

some

Better

ciencies—U. S. Industrial Chem¬
icals Co., 99 Park
Avenue, New

Inner

Workweek

and

Dispersions for improve¬
of

York

Average

About Time Buying
Finance Confer¬

Speculative

States

policy-making responsibilities, it
carries influence and prestige.

broken

BOOKSHELF

carrying

United

Francis

University
Broadway,
New
27, N. Y., $8.50.

Financing

ment

load.

Meantime, at the outlook
ference

side, and that

one

aid

Plans

2960

Sodium

Japan, England and West Ger¬

Chamber

Priest

stories of her job.
She says a
North Carolinian wrote her sug-

This

foreign

Insurance

Colleges—William

176 West Adams Street,
Chicago 3, 111. (paper)*

why the prospering countries of

to old-fashioned concepts—

bill

its

ence,

Businessman's

of the colossal debt. That is why
the United States must cut down
on

25,

American

serious

and dead

aware

about the financial predicament
the United States is in because

assistance programs, and that is

that they are against

Press,

ing—Facts

prices.

Printing Of¬

Greenough and
King — Columbia

Bull-

—

"These people charge," said
she, "that those who insist on a
balanced
budget and
fiscal
soundness are too rigidly adher¬
ing

York

spending^ regard¬

effect

less of its

Otis

partner,
j

and

Su¬

—

Documents,

Government

American

Sales

things,

this country have

States

dozer-

debt,

when she
told hearers that some people in
sition that

general

our

United

stupendous

other

among

been thinking

must have

about

the

Treasurer

woman

history

Retirement

"Press Release—'We sincerely regret to announce t.ie

and it is growing.

The

Department

—

fice,
Washington
(paper), 25 cents.

alone is

$8,000,000,000

beyond

now

year,

(paper).

perintendent

today

interest rate

the

Mort¬

of State Publication 6844

is under
a
staggering debt of $290,000,000,000. It is really serious, be¬
cause

Republic of China

the

Government

The

National

Association, 811 Vermont
Avenue, N. W., Washington 25,
gage

White House and Congress.
United

Statement

Secondary Market Oper¬

ations—Federal

balanced

Financial

and

of the

STREET

•

Our New

Co. Inc.
N. Y.

TELETYPE NY

LE3KER & GO.

1-971

Investment

10 Post Office

Department,

Administration,

telephone number is

SPECIALISTS

NEW YORK 5.

TEL: HANOVER 2-0050

York

CAnal 6-3840

and all the members of the Eis¬
a

With

York

budget in 1960, but it could hap¬
pen
with the right kind of
stern leadership from both the

favor

govern¬

New

Inc.,

liye

again in 1957. It looks

unfavorable

there

Reserve

Harriman—Simon

to its repeated promises in
bygone years that it would have
balanced budgets. The facts are
since coming into power in 1952
it has had a balanced budget in

try around the world.

It is pretty ob¬
Ivy Baker Priest
the United States

Standard

bassadors and leaders of indus¬

Peace

prosperous

But the Eisenhower Ad¬

was

from.

Gold

Arthur I. Bloomfield

—

(paper), 500.

Administra¬

was

that

1914

of Eisenhower Regime

doubt where the next meal

vious

national

Federal

ing from, sometimes there
coming

tion

years.

integral

speech

responsible gov¬

Eisenhower

This

sound

other

the

York,
The

1960.

preaching for

quoted

cently

out

she

and

sound

Failure

all

charge

the United States
at Fort Knox, Ky.
She is not only responsible for
all the money paid to the gov¬
money in
and the gold

the

ernment of the United States

„

Monetary Policy Under the Inter-

the

from the West deliver her

ernment.

Team, could hear this' daughter

chicken

man

turer

Publishing Co., 8543 Puri¬
tan, Detroit 38, Mich.

members

country ham. ,
She had just heard ihe man
who introduced her declare that

Ninth

—

of Directory—Manufac¬

Eisenhower

and

Eisenhower

dent

diners had finished their broiled
on

Edition

if Presi¬

thing for the country

Pearcy

Michigan Manufacturers

A tall,
in a black
—

Teri-

Etzel

—Superintendent of Documents,
S. Government Printing Of¬
fice, Washington 25, D. C., 100.

from the nation's capital

WASHINGTON, D. C.

Eco¬

Irving-

Telephone
°-1990

are

Securities

Square, Boston 9, Mass.
Teletype
BS

Full text of Commercial and Financial Chronicle : November 26, 1959, Vol. 190, No. 5902, Section 1

FRASER