Full text of Commercial and Financial Chronicle : November 5, 1959, Vol. 190, No. 5896

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THE

UNIVERSITY

MICHIGAN

nov

61959

BUSINESS ADMINISTRATION
LIBRARY
ESTABLISHED

18SB

Reg. U. S. Pat. Office

Volume 190

Number

New York 7, N.

time immemorial

some

have

men

dreamed

society in which each would draw from abundant
duction

alt that

necessary

...

.Utopia*. A touch of realism,

: ~

By A. Wilfred May.

Analysis of investment-

[Tables appearing on page 23 and 28 show Funds comparatlye investment; positions; total common stock and

•

companies'/operations during Sep¬

other

tember quarter's gyrating stock market reveals

sharply cur¬
particularly by the balanced

tailed buying of common stocks,
funds.

Substantial

increase

cash

and

government

big-wig once got into
by apparently deferring the date of the
fledged communism.
:
,

It remained for the pragmatist Khrushchev to alter

the Russian line to the extent of

admitting that dreamedlong way off, and warning that
ways and means of greatly enlarging production had to
be found to make ready for it. And one of the essential
means of
accomplishing that end was, according to this
rather unorthodox leader, the full use of incentivesof communism is still

clined

net

; The
under

informed the President that his

regime had developed a
much more effective employment of incentives than he
had found* in this country where tax
systems, among
the

urge

among

abundantly.

The

recent

in Russian economic production
doubt, largely
the greater and
(Continued on page 30)

to be attributed to

U.S. Government,
Public

quarter.

was,

balanced

their

portfolio

funds

nat¬

SURVEY—In

this

issue

major investment companies

their cash and investment positions

in
on

Municipal

Securities

during

the

BROKERS

Income

2-.3700

Fund, National Securi-

So.

our

continuation of

analysis

State, Municipal

Co.

Bonds and Notes
Exchange

Members Pacific Coast

FOREIGN

SECURITIES

COMPANY

30 Broad Street

THE FIRST NATIONAL CITY BANK

Burnham
MEMBERS NEW

New York 15

and

15 BROAD STREET, NEW
CABLE:

YORK 5, N.Y.

•

Dl 4-1400

Bond

T. L. Watson & Co.
ESTABLISHED

1832

Members

Investment

Inquiries Invited

on Southern
California Securities

New York Stock Exchange

Dept.

Teletype: NY 1-708

New

York

Correspondent—Pershing

Securities

Co.

Active Markets Maintained

Dealers, Banks and Brokers

canadian

CANADIAN

securities
Block

bonds & stocks

Inquiries Invited

MunicipalBonds

Commission Orders Executed On All

Stock

Exchange

BROAD

STREET

NEW YORK 4, N. Y.

goilthicedt COMPANY
•

DALLAS

CANADIAN

FOR COMMUNITY

DEPARTMENT

Teletype NY 1-2270

DIRECT WIRES TO MONTREAL AND TORONTO

Goodbody

dominion securities
corporation

Co.
1

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

Chase Manhattan
BANK

Canadian Exchanges

American

the

TELETYPE NY t-2262

COBUKNHAM

Distributor

Dealer

San Diego, Santa Ana, Santa Monica

BOND DEPARTMENT

EXCHANGES

Net

•

Exchange

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

OF NEW YORK

Company

YORK ANO AMERICAN STOCK

Public Housing Agency

Hope Street, Los Angeles 17,

UTILITY

PUBLIC

PERTH AMBOY

2 BROADWAY
NEW YORK

NORTH

LA SALLE ST.

CHICAGO

ago), and Madison. In the case of the latter,
a relatively short-term investing,
is indicated* by its President's comment:
"During the summer; we inaugurated a policy of
accepting capital gains on securities which seemed
overpriced and reinvest(Continued on. page 22)
a

attitude

Members New York Stock Exchange
Associate Member American Stock

INDUSTRIAL

BOND DEI'MITMI NT

August-September

Series,

the quarter ended Sept.
June 30 and Sept. 30

623

NEW YORK

FIRST

market's

year

than

Lester, Ryons

and

RAILROAD

Underwriter

interesting in manifesting

and

CHEMICAL BANK

TRUST

The cautious

George Putnam, Valbe Line
Income Fund, Wellington Fund, Guardian, Dominick Fund (despite its substantial rights offering a
ties

UNDERWRITERS

DEALERS

California

IIAnov

telephone,:

are

Housing,

State and

investment

fund-holders',, undisturbed longer-term confi¬

Eaton & Howard Balanced

own

present

the

tronics, Boston Fund, Commonwealth Investment,

liquidated
stocks

common

all

cluded Axe-Houghtoa A and Axe Science & Elecv

QUARTERLY INVESTMENT COMPANY
compare

"bearishness"

Chief net sellers of portfolio common stocks in¬

they acquired. Of these balanced funds, only eight
were net buyers of common
stocks, eighteen were
net
sellers, with five stand-offs. This compares
with the preceding quarter's fourteen net buyers,

of the portfolio operations of the

30, 1959, and

first

sec¬

$165.5

derived from sales of their

open-end.
of

the

urally,
concentrated ' in
the
policies of the balanced funds.
Despite the increase in their

May

the

pared with August)

decline.

six.

quarter-to-quarter decline in redemptions was ac¬
companied by a 5.5% increase in the rate of the
public's purchases of fund shares. Both these trends
(which were accentuated in September as com¬

dence

from

and

other words, individuals preserved their long-term :
investment attitude ..relatively more strongly than j
did
their
expert
managers.
Furthermore,
this

companies

$124.6 million in the

quarter,

seven

sellers increased from 22 to 29.

from

This
Wilfred

38%

upsurge

review reduced their

our

million

shares,

and scientific achievement is, we have no

investment

from

net purchases of portfolio com¬
mon
stocks to
$79.3 million,
ond

investible monies

Incentives Work

with

Bonds and

strong cross-currents, fund
managements sharply lowered
their acquisition of equities.

more effective use of them than had
practice in Stalinist Russia. So much enthused
about this presumed discovery was the Russian leader
by the time he arrived in this country recently that he

great deal to undermine the vigor of
men
to produce more and more

finish

contingent increased from seven to 15.
Interesting indeed is the caution displayed by
managements in the light of a sharp decline in
redemptions by their shareholders, namely to $186.3
million from $229.3 in the preceding quarter.
In

greater and

only to

by industry groups.]

stand-off

preferreds continued their sag¬
ging. Against this background

been the

tilings, did

net decline of 2.7%.

;

common

companies under review, the number of net buyers
of common stocks declined from 55 to
41, while the

During the third quarter to Sept. 30 the stock mar¬
ket (as measured by Standard & Poor's
Average of
500
Stocks
comprising industrials, utilities and
rails) first rose by 4% to an all-time high on

Aug.

individual

were automotives,
chemicals, and glass issues. Sell¬
ing predominated in agricultural equipments, aircrafts, air¬
lines, drugs, and oils. Interest continued In foreign issues.

•*-

stock transactions

and

sellers, and three stand-offs among the
balanced funds. Of the stock funds, the number of
net buyers fell from thirty-four to
twenty-seven. *
Among the closed-end companies, net sellers in¬
creased from three to
five, while net buyers de¬

Favored

transactions;

thirteen net

bond

were General Motors,
Ford, and International Nickel. Most widely liquidated issue
again was ATT, followed by United Aircraft and Merck.

securities

holdings noted. Most popular issues

influential Communist

one

arrival of full

other

Copy

produce all
possible the

serious trouble

much

perhaps :we
pseudo:realism,/was added when Marx and
Engels evolved the system in which incentive-less Com¬
munism, would be reached through state socialism (not
to be confused with state capitalism,
according to present
hay communist practitioners) which would gradually
permit or induce government .to .wither away. But ac¬
cording to the Communist fathers in the Soviet Union,
Utopian communism would not be long deferred. Indeed,

...

$1.25

pro¬

should say

at least

Price

to meet his needs/while

each without
any particular incentive would
that his ability permitted—and thus make

economic

Y., Thursday, November 5, 1959

AS WE SEE IT

Editorial
From

5896

Exchange Place, New York5, N. Y.

PROTECTION
MUNICIPAL BOND DEPARTMENT

Bank

America

N. T. & 8. A.

Teletype NY 1-702-3

* WHHehall 4-8161

San Francisco

Los Angeles

y v1

The Commercial and Financial Chronicle

(1890)

ftoi) flanks, Brokers, Dealers only

The Security I Like Best...
A continuous forum In which, each

Specialists for

over

in the investment and advisory

y\h'f

30 years

Thursday, November 5, 1959

This Week's

Forum

week, a different group of experts

Participants and

Alabama &

Their Selections

field from all sections of the country

participate and give their reasons for favoring a particular security.

General

Electirc

Co.—Maurice

Louisiana Securities

Benjamin,

I'.OM,'

Partner, Benjamin,
Co., New York City.

Hill
&
velopment of reactors for ship and
propulsion (including
(Page 2)
reactors
for the world's largest Pipelife Corp.—Edmond L.
Brown,
submarine, the Triton) at Knolls
President, Carothers & Co., Inc.,
Atomic
Power
Laboratory
in
Dallas, Texas. (Page 2)
Schenectady, N. Y.; production of
plutonium for the Atomic Energy
Commission
at Hanford,
Wash.; ing equipment, and lamps, repre¬
and the building of aircraft nu¬ sented
approximately 26% of the
clear propulsion systems at Evencompany's total sales in 1958.
dale, Ohio and Idaho Falls, Idaho.
Residential

MAURICE S. BENJAMIN

submarine

Bank Stocks

Benjamin, Hill & Co.

Partner:

Neiv York

Oar 110th Consecutive Quarterly

Comparison of Leading Banks
and Trust

Companies of the

United States

and American Stock

Our studies show

that the indus¬

that

should: outperform the
general economy in the foresee¬

request

Exchange (Assoc.)

General Electric

tries

Available

York Slock Exchange

New

Members

City

future

able

trical
E

Corporation
Member

Stock

American

Exchange

120 Broadway, New
BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Private

quipment,
lectronics,

t i

York 5

Teletype NY 1-40

WOrth 4-2300

Energy'

PlasRec¬

Space,

Wires to Principal Cities

reation

and

Residential

banks,

Building. The
leading

General
tric.

Richardson Co.

favorite

our

is the

largest electrical equipment

man¬

400,000
tions

BOENNING & CO.
Established

1914

1529 Walnut Street

New York 6,
CO 7-1200

Philadelphia 2, Pa.

Ui Y.

LO 8-0900

ATT Teletype PH 30

Sales

billion; there

individuals

that

been

STREET

WALL

5, N.XY;

NEW YORK
.

;

..,rfr.s

over

are

institu¬

and

the

own

traordinarily favorable.

LAMBORN & CO.. Inc.

are

87,717,000
shares; earnings this year will be
a record of close to
$3 (cash flow
$4.50) and dividend payments $2.
At 76 tjie yield is about 2%% and
the times-earnings ratio is about
25—compared to all other highest
quality growth stocks this is ex¬
secutive

have

years

billion.

Research'

—

Refined

—

builds

an£

Expanding
tions
DIgby 4-2727

jet

Develop¬
about

per

The

engines

instruments
also

small

Air¬

designs

and

for

pre¬

turbine

engines
commercial helicopters.
Atomic
pean
won

turbine-generators

production

electric

power

represent an area of intensive
search

re¬

and

development by Gen¬
The world's largest
steam turbine-generator
now
in
operation—a 335.000 kw unit —
was designed
and built by G. E.
eral

Electric.

The

company

is also building a
500,000 kw cross-compound unit,
has completed design studies for
a
600,000 kw unit, and foresees
units of

ity

million kilowatt capac¬

entirely feasible.

electronics

for

Energy: Three Euro¬

power reactor orders were
in 1958 by General Electric's

business

including
the pre-World War II growth in
radio,
the
wartime growth
of
radar, the postwar boom in com¬
mercial television, and the cur¬
—

rent
strong growth patterns in
military and industrial electron¬

ics.

tronics business continues to grow.
General
Electric is a leading

supplier of electronic components.
Semiconductors, including trans¬
istors, are a particularly active
area of growth.
Missiles

and

Space:

The

wide

Atomic Power Equipment Depart¬
ment.
General Electric won this

variety of electronic devices and
components whose operation must

contract in the world's first inter¬
national reactor competition under
World Bank
sponsorship, which

attracted bids from 14

nu¬

Electric continued to place heavy

These
number

emphasis

orders

raised

of reactors

taken by the

the

be under¬

Department—12 for

used

Arctic

Air Force

base

proposed
which calls

company

"Operation Sunrise,"
for

accelerated atomic techni¬

cal

development,

achieve

program

competitive

nuclear

in domestic high-cost fuel
by 1965 through intensive
development of boiling water re¬

earth's

re-enter

nose

cones

...for you

of 50,000 kw unit for Pacific Gas &
Electric Company.
The number of General Electric

employees

working

atomic

projects in 1958 totaled 14,600 and
included employees engaged in:
commercial

atomic

opment,

discussed

power

devel¬

above;

de¬

features

ing

development and

that

bring continu¬
the business of

progress

helping families live better
electrically.

Atlas,
in

orbit.
Plastics:

Lexan

Plastics

development by the company's Re¬
search Laboratory of a new plas¬
tic material of exceptional tough¬
ness

and

strength, heat resisting,
stability, and desir¬

dimensional
able

electrical

molded
used

properties.

Lexan

are

aircraft,

now

business

ma¬

General

Electric

than

tions.

100

There

scientists

circumstance

solicitation of

offer

buy,

any

offer

security referred

)

sell,

herein.)

write

Yamaichi
Securities
of

New

Company

York, Inc.

Brokers &

111

Investment Bankers

Broadway, N. Y. 6 COrtlandt 7-5680

loca¬

10,000

supporting
the

efforts

ing polymer studies, organic

EARN

cal

studies; Electron physics, in¬
cluding information theory, are
and
plasma studies,, nucleonics,
electronic
circuitry;;, Metallurgy
and ceramics, including studies
pf1
mechanical
behavior, of metals

Vi% Annual
Return

MORE
We

syn¬

thesis, fluid mechanics, combus¬
tion chemistry, dielectric studies;
General physics, including work
on
semiconductors, light produc¬
tion, surface phenomena, biologi¬

suggest Glass "A" stock

of aggressive smail-loan
chain.

Dividends paid since

——1942.

Currently about $6.00

share.

per

ALBERT J. CAPLAN & CO.
Members: Phila.-Balto. Stock Exchange
Boston & Pitts. Stock Exchanges

(Associates)

I5.S LOCUST ST., PH'U. 2. M.

and

.ViV.

ceramics, electrical and mag-r
behavior of materials, co¬
hesion and stability, kinetics of
netic

SMALLER COMPANIES

metal and ceramic reactions.

General Electric stock is
of value and

thing

buy forever.

PROFIT SITUATIONS believes that recognizing
value

soundest

EDMOND L. BROWN

President, Carothers & Company, Inc.
Dallas 1, Texas

worthy

information

Pipelife Corporation

services.

and

panies

its

have

predecessor

spent

com¬

twelve

years

designing and patenting the only
known

contains

Each

about

issue

the

life

its

investing

also

economic

trust¬

smaller

investment

most

carries

capital

and

promising,
in

the

for

authoritative

companies not encountered

comment

PLC

early

company

approach

gains.

penetrating

background for In¬

vesting by Ir» Cobleigh. Send 52.50 for current
issue

$15 for 3 months.

lished twice

$50

a year.

Pub¬

month.

practical method of coat¬

ing

oil

gas,

products

INVESTMENT ASSOCIATES
P.

0. Box 14

Hillsdale, N. J.

transmission
line

with

coat

resin

epoxy

th'e

the

pipeline
while

buried

the

ground.
The

results

are:

(1)
crease

13%
Edmond

Brown

in¬

of 5

sav irg^

gas

and

products
capacity
by
reducing friction on the inside of
the

pine.

This

substantial

value to high pressure gas trans¬
mission lines, as a 3% increase in
deliveries will more than pay for
this

protection, from corrosion.

(2)

The

coating

internal

stops

leaks and reduces maintenance in

(3)

be .construed

Tokyo, Japan

per

cases

from 60c per annum

foot to 3c.
Extends

the

transmissionline

life

the

Potential Business

gas

OVER-THE-COUNTER

;

INDUSTRIAL STOCK INDEX
20-Year Performance of
35 Industrial Stocks
FOLDER

15 to 20 years.

miles

N. Q. B.

approximately

are 150,000
transmission
and

Continued

REQUEST

National Quotation Burean

It is estimated there

(This U under

Call

three

laboratory

are

and

information

current

Affiliate of

develop new knowledge, new
products, new processes and new
improvements: Chemistry, includ¬

Recreation: Consumer goods, in¬

appliances, radio
and
television
receivers, small
electric housewares, air condition-

For

many

major

stocks

Yamaichi Securities Co., Ltd.

spends

14,000
personnel engaged in

chines, ranges, TV, instruments,
electronic equipment and cameras.
cluding

times the average of all industry
for Research and
Development in

Parts

being'

japanese

Future Planning

branch offices

our

re¬

new

will

atmosphere after

areas

The first of five
developmental
plants of the Operation Sunrise
phase is now under construction—

and

command

power

actor systems.

Thus General Electric looks to

which

flight, and on the radio
guidance system for the
which placed this missile

Direct wires to

products. The
spray-steam iron
is already outselling the conven¬
tional steam iron; the Toast-ROven is overtaking prior toasters.
search

NY 1-1557

Birmingham, Ala
Mobile, Ala. ■

new

rocket's

HAnover 2-0700

consumer

company's

Thor and Atlas
the

the house.

Exchange

Stock Exchange

New Orleans, La. -

Home

inside

power.

1958

and other

York Stock

American

19 Rector St., New York 6, N. Y.

refrigerators, lamps, toasters, fans

.Systems developed by G. E. in¬
clude the giant antenna-reflector
bounce signals off the troposphere.
The company is also at work on

within

rooms

systems development.

research and test purposes and six
for production of atomic electric

Members

product; called
provide
alland cooling by

missile's

coun¬

try and abroad.

heating

Members New

ivill

coordinated perfectly in guid¬

ing

flight
through
space comprises a complex elec¬
tronic "system." In 1958 General

leading

clear reactor builders in this

new

Steiner, Rouse &Co

Similar "technological rebirth" is
evident in electric irons, radios,

General Electric's defense elec¬

airlines.

commercial
applica-,
include the company's

gas

for

Equipment:

Energy

steam

played a leadership role in lour
great surges of growth in the

Transportation:

cision

Electric

$1^

craft Gas Turbine Division
and

Exports—Imports—Futures

other industries.

Giant

zones

being developed by the
for customers in many

are

nearly

from 84%.

Liquid

tems

Electronics: General Electric has

The stock is selling around
of this year, 75-80 down

Air
Raw

750

past

the low

SUGAR

sorting

and

the

been

mentexpenditures
are
equal to earnings, nearly
share.

con¬

payments have
period of 60 years.

Capital expenditures
10

The

dividend

over

electric

minute, determining ade¬

company

stock.

This 82 year old company

above

Keyes Fibre Co.

Broadway

ufacturer in the world.

Stouffer Corp.

115

Benjamin

to see why General Electric

easy

Fischer & Porter Inc.

M. S.

Elec-

Thermaline,

of customers' funds, hold¬
ing up checks that are not cov¬
ered, computing pew balances and
issuing monthly statements. Sim¬
ilar complexes of computer sys¬

these fields is

A Continuing Interest in

production

quacy

supply all

can

reading

checks

that

company

and

computers formed

Missiles and

1920

Established
Associate

for' Products—A

of
major plant
expansion/ project f or General
Electric in 1958. Primary emphasis
is
on
computers
as
electronic
brains for controlling systems and
for solving specialized problems
for industry and business, rather
than general purpose computers.
A computer'system will provide a
complete
automatic system
for
development

Atomic
Energy, Com¬
puters, Elec¬
tion,

New York Hanseatic

Computers:;,:New ,facilities

Transpprta-,

Air

are.

Building:

Bought—Sold——Quoted

page 43

Incorporated

46 Front Street

New York 4, N. Y,

Volume

190

Number 5896

The

Commercial and Financial Chronicle

(1891)

Odds

Bonds Still

Favor Higher Yields

llCHTtnSTEl

B.S*

CONTENTS'

AHD 00)47 ANY

Articles and News

liy Robert Van Clenxes Vice-President, Research, C. F. Childs and

•

Company, New York City

Well

known government

bonds' analyst opines the odds still favor

higher bond yields in the

future. Though housing may be dis¬

near

have

somewhat

less

nor

confidence

that* the

my bearish view of the bond
market than I did at this time a

year

Still,

ago.

seems

balance

that

the

favor

odds

mer,

yields
i

some

pressing

Despite

the

dealt

with

...

damaging

ef¬

issue

($11.2

rec¬

breaking
interruption

tial

This

billion)

November
The

problem

first.

1961.

2V2S

forces of

Robert

addition to the

eco-

nomic expansion are
strong enough
to bar that unfortunate

episode

from

tipping

into

sion.

new

any

reces-

these

circumstances

for

capital

short-term

and

continue to

grow.

may

hurt

implying

mortgage

the

funds,

beginning

de-

by "tight-money,"
lesser
demand
for
but

money,

likely

hard

against

supply

than in

money

Our

Treasury's problems
of financing and
re-financing are
immense, and >vill present a major
stumbling block
the ^vay of
any
real rally in
bond prices,
Those who rely on

budget

balance

fiscal year to

this

sort

the

been

the

Treasury

addition

holdings
,.

new

money -

employment"—

for

risk

giving

dollars

them

the

;

First

talk by Mr. Van Cleave before

spZZreTby

Na i~nal

of St.

billion.

There

—

1959.

when

•

cash

—Jesse

BROADCASTING

Enigma

Tapp and John A. Hopkin

The Russian Enigma—Roger W. Babson__

HERMES

ELECTRONICS

KRATTER CORP.

ifc

Savings Bankers School at Brown University-.-

Regular Features
-

As We

See It

(Editorial)---

Business

Man's

J.F.ReilIy&Co.,Inc.

Cover

Bank and Insurance Stocks

Bookshelf.

Comings Events in the Investment Field

Einzig:

Colonial

Texas

Spivey

Gene

—

Snivev

formerly

was

with
,

^ e First National Bank of Fort
Worth

and

specialized

"Avoiding

Gold-Suspension"

Indications of Current Business

Basic Atomics

Activity.

_ _ _

_ -

Mutual Funds

Pacific Uranium

Microwave Associates

NSTA

Notes

___.

News About Banks and Bankers.

Ennis Business Forms

Municipal

Our

Reporter

Reporter's

Public

Utility

PpCCCPQCn CTfiPKC

Security

Salesman's

The Market

and

York

1868

Stock

TELEPHONE HAnover 2-4300

Direct Wires

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*See article starting on cover page.

fColumn

not

available this

Bank & Quotation

week.

Record
Twice

Weekly

TELETYPE NY 1-5
Chicago

Glens Falls

Worcester

1959

The COMMERCIAL and

FINANCIAL

CHRONICLE

DANA

Place,

COMPANY,

New York
to

(Only $45

Dana

(Single

as
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a.y

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you

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Over

publication will

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those "hard to

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Counter

find"

quota¬

tions.

tVrite

call:

Other Publications

Thursday

(general news and ad
vertising issue) and every Monday (com
plete statistical issue —market quotatioi
records, corporation n«-"s, bank clearings
state and city news, etc.).
Other

This

Subscription Rates

Thursday, November 5, 1959
Every

per

Copy

Reentered

9576

SEIBERT.

by William

Company

Reg. U. S. Patent Office

Park

WILLIAM DANA

Exchange

Dallas

Philadelphia

You—By Wallace Streete.;
—

Cleveland

San Francisco

39
.___

Tax-Exempt Bond Market—Donald D. Mackey__

Schenectady

inc.

40 Exchange Place, N. Y. t

Teletype NY 1-1825 & 14844

Corner-______

GEORGE J. MORRISSEY, Editor

ST., NEW YORK 4. N. Y.

___

Offerings.--.-

CLAUDE D. SEIBERT, Vice-President

Boston

The State of Trade and Industry

REctor 2-9570

Spencer Trask & Co.

Newark

HA 2-9000!

29
,____

Securities Now in Registration-

New

Mackie,

Securities..

Railroad Securities

WILLIAM

Members

Report--

Singer, Bean

Governments.

Securities

mlliLrLllllLU 01 UufVO

BROAD

Observations—A. Wilfred May.
Our

Company of Dallas.

Founded

Corp.

From Washington Ahead of the News—Carlisle
Bargeron____

Published

F or many years we

Albany

METROPOLITAN
12

trading and syndicate department.

It is well known

Nashville

ALASKA OIL

The Security I Like Best

Ifamilton Securities C o m p a n y,
K*&by Building, as manager of the

addition, there is the prospect of a large supply of new
Treasury bonds of really longterm as soon as the Congress gets
around
to raising
the statutory

& MINER ALS

What's Wrong Today With Collective
Bargaining?
—Hon. James P. Mitchell--

Security

•

lexas
«e"e »Plvey
^as become associated with

have

INDUSTRIES

DATTAo.

oper-

ating surplus of $11.5 billion in
that period, which is far bigger
than anything suggested for 1960.

414% rate limit.

BRITISH

Brighter Outlook Ahead in the Textile
Industry
—Seabury Stanton
;___

Prospective

Gene Spivey J oms

refunding was ex¬
totaling only $9.5
was

;

Louis, St.

Louis, Mo., Nov. 3, 1959.

newjissues were offered for Hamilton 06CS.
cash, and when
light,

Needed?—Leonard Keesing__

tremely

Graff

currencies
1

£c„dYSSiSii?

cash,

fright

wholesale

other

we-cana

4-6551

and

.il

might lead to
into

and

have such large

now

billion, in 1953, and $14.0 billion
1956,

citizens

---to dollars.
,

new offerings have totaled
amounts
ranging
between
$3.5

was

Foreign

conversion

refunding

issues

exception

no-longer adopt

to "full

STREET, NEW YORK

...

which

|These

The

not.

heavy

in the first half of

easy

previous post-

short-term securities that

offerings, has been able to avoid
gelling

means

governments

JanuaryJune period since 1952 (with one
exception) in which the Treasury,
in

can

*easy

foreigners.-

current

and
disappointments
have a tendency to

has

Federal

policies—
canliot resort to inflation as

produce sharp reactions.
There

maintain

out o£ the market in the first half
of next year are
likely to be dis-

appointed,

^__

Dealer-Broker Investment Recommendations

economy

world.

the projected ''without regard to the opinions of

for

keep

the

longer insulated by a large favorable trade
balance from the rest
of
the

Treasury Financing Problems
The

any

WALL

Telephone: WHitehall

clear

recession.

war

Obsolete Securities
Dept.

•

recession

cession before switching to

press

obsoletes.

up-

Reserve System will wait longer
f°r convincing indications of re-

current
6

savings.

course,

believe

moreover,

govern-

continue

economic

the

and an easy money policy by the
Federal Reserve System,
Personally, I do not expect a
new recession at any early date;

both

long-term, will
Housing starts

mental and business
requirements
are

market

runaway

side—barring,

In
mand

long-term market

supply.
It should constitute a
pretty effective barrier against

your

for

L__

Costs and Benefits of Our Farm Programs

as well, into 30- or 40-year
bonds will represent an immense

Van cieave

—Wayne R. Bennett
r

these

I
..think the
o

Cleave________l

conversion of any substan¬

portion

To pay

cash

Selection of Common Stocks in
Today's Market

pro-

steel

99 Wall!

__Cover

Business and the Money Market in
1960—R. N. Nolen______

due

2V2s, and
perhaps of the large issue of "tap"

due t i

Troubling Elements Affecting Optimistic Outlook

be
big

the

2^s

Van

Is Devaluation

even

may

May_______

ELECTED AGAIN

'Page

Bonds Still Favor Higher Yields

—Herrell

first dis¬

was

it is suggested that

Now

into next year.

;to

The

bonds

officially, early last sum¬
it was understood to be

ord

Wilfred

—O. A. Jackson

aimed mainly at the callable 2 %%
bonds—the so-called "tap" issues.

probably, well

fects of a

maturity

cussed

toward

,higher
r u

the

,'
When this scheme

con¬

tinuance
trend

extend

short.

■

Currency Convertibility and International Trade

which, because of the passage of
time,
are
growing dangerously

,■"

J. C. Penney Co. Takes the Cash
and Lets Credit Grow
—Ira U. Cobleigh___J_

Treasury strongly desires

of the large issues of 2V2%

—Robert

precipitous about face into easy money. /;

Issues—A.

Odds

couraged by tight money, government financing problems and busi¬
ness
requirements are .expected to block any real rally in bond
prices. Mr. Van Cleave expects the Treasury to first tackle its 2'/2s
when Congress lifts the interest rate
ceiling, and he assumes no
recession is imminent

•

Funds Curtail Stock
Buying and Switch to Fixed-Income

South

(Teiepnuuc

Salle

oiuic

St.,

Bank

$45.00

and
per

Quotation

year.

Record

(Foreign

WILLIAM B. DANA

Monthly,
Postage extra).

Note—On
the

must

account of the fluctuations in
of
exchange,
remittances
for
subscriptions and advertisements

rate

foreign

be made

in New

York

CO.

—

funds.

Park

New York

Place

7, N. Y.

REctor 2-9570

Chronicle

The Commercial and Financial
4

comment

until

1902

From

1957, J.

into

second
general mer¬

Penney Company, now the

retailer

largest

(after Sears,

chandise in America

merchant, as it

this distinguished chain store

broadens its sales base through

Roebuck), did
business" only
cash.

for

increasing extension of credit.
stores; meanwhile a consider¬
able educational program will be
all

excellent

and

uninterrupted
dividends

stockholders

Ira U.

Cobleigh

dedicated
cash

sales,

dramatic

business.

major

with, other

contrast

years.

operation

mediate

success

exciting
profits

of strictly
indeed,
a
C.

Penney

1957,

pilot

small group

pectable,
tomarily,

ex¬

seems

now

these wares are, cus¬
sold ■, principally
on

Penney

drying,

rapid

durability,

colors,

You would expect a company

etc.

large so huge as J. C. Penney

opened

has

and

im¬

was

only to do product research
manufacturing of its own; but
ft doesn't It sets specifications and
standards for its jobbers and sup¬

vistas of sales
this renowned
the
present time

for

but

out

Reference to fashions in

financed. Life
indeed
you

.sandwich

to;

cuff

the

beautiful,

buy

can

today

and

anything

can

from

skyscraper

a
on

'"easy" monthly payments.
But
Penney extended credit strictly
to expand
its business, and in¬
crease
its profits;, The argument
was that existing customers would
buy more, new cubtoihers would
attracted, and higher priced
i(and
long
profit)
merchandise
could be added to the sales line.
be

The

argument. was

credit

accommodations

off in

big

way.

and

sound

paying

In those stores

credit, sales have in¬
creased by as much as 25%; and
overall sales increased 9% in the
six months ended July 31, 1959.
selling

merchandise

the

Important, if not indispensable,
the success of J. C. Penney is

effective manage¬
ment
echelon, whose loyalty is
assured by profit sharing and in¬
centive
plans that extend from
an

and

eager

draws

store. --Nobody

each

sonnel

above

salary

to sales per¬

down

President

the

hi+ bonuses-;to' executives

year,

store managers

and

$10,000 va
be quite

can

juicy".; Among smaller stores the
manager may be paid, in a given
year,
as
much as one-third of
the net profits of the store; in
bigger retail outlets, up to onesixth of net; So everyone is on
his

Stores

toes.

profits

are

favor

better

of.

perhaps

newer

than

showing

meager

weeded out each
located

stores.

the

year
-

and

Probably

case

any

other

big chain operation, the
Penney
makes a
charge for manager of each Penney unit is
credit accommodation, but expects virtually his own boss; and esprit
de corps throughout the organi¬
to
earn
its
profits from mer¬
is excellent because so
chandise sold rather than from zation,
much is left to individual initia¬
these financing charges.
General
program is to charge interest only
on accounts running over 30 days.
will

before

tive.

sales.

Average

sales per store have
steady uptrend rising

been

credit will be available in

from

$550,000

1949,

landlords

only

criteria

cial

each

aged 16% on
past decade.

years), and steady growth
which have made
investments.

Philadelphia Bank Stocks sound

Now, with loans at

loan rate to 5%—the

Ask

for

should
our

the factors

are among

high level, most

of the banks have increased their

combination

132

prime (basic)

highest in 28

favorably

quarterly

years.

affect

comparison

This

earnings.

Phila¬

delphia Bank Stocks.

STROUD
&

COMPANY,

1954

«■

accommodations

take

care

potential $225 million in

con¬

probably
bank

could

arranged
through
possibly, at a later

loans

extensions

credit

date, by a debenture issue.
C.

J.
a

Penney common has been
its

the

considerable content¬

source

stockholders.
in

men

substantial

(Most

management

are

Divi¬
dends have been unfailingly paid
since 1922. The present indicated
rate of $4.25 has been paid since
At

yield
has

3.8%.

Penney

consider¬
depression-resistant
quali¬
displayed

below

not sold

has

and

1950.

the

For

be able to

has

affords

dividend

the

112

current

the

shareholders.)

should

Penney

stability of earning power it
consistently manifested, plus
exciting new dimensions of

profitability

stemming

credit

and

goods.

Four

Penney

common

$8.50

share,

should

ascend

market

price,

from cus¬
larger

much

sales volume of "big
ble

week's

Broadway, N.Y. 5
PITTSBURGH

•

ALLENTOWN

•
•

WO 4-8400
LANCASTER

years

1959

1958

1,206,414,161
1,054,000,000
858,999,998

1,173,922,083

1,040,000.000

2.8
1-3

782,692.646

9.7

4-21.0

Nov.

the

leading

banking

centers,

refer

Summary of Business Conditions

summary of general business and financial con¬
in the October issue of the Federal Reserve Bul¬

ditions appears
letin:

' ~

;

...

Industrial production declined slightly further in
September,!
as the work
stoppage in the steel industry entered its third month. ;
Inventories of steel were being rapidly depleted and output
cpr_

•tailments among
little

steel consuming, industries

were spreading after!
of new housing: units
started changed '•
September. While nonfarm employment was maintained,

midmonth.
in

consumer

The

number

incomes

and

retail

sales

were

reduced/The

money"

supply declined somewhat, and markets for fixed yield securities
strengthened after mid-September. Prices of-basic materials con-'
tihued upward.
'
'
: '
-

was

Production: Total output at factories and mines in September
148% of the 1947-49 average, as compared with .149 in August *

and the

12%

pre-strike peak of 155 in June. Steel output remained at-'

capacity, and depletion of steel inventories reduced
activity in some industries, -such as railroad equipment and ship¬
building7. Output in theTTonferrous mining and manufacturing in-"
dustries declined further reflecting continuation of the work stop¬
pages which began in August. Pre-strike accumulation of stocks,
however, permitted most machinery and consumer durable goods
industries to maintain production. The number of autcs assembled,
while up
less than seasonally from August, recovered rapidly
from the model-changeover low reached in early September. In '
early October the rise in auto production was limited by steel
shortages.
.
Over-all output of nondurable manufactures, which by mid¬
was

year

one-tenth above the advanced level in

1957, has since

changed little. In September, further slight decreases occurred in
the

textile, apparel, rubber, and petroleum products industries,
ouput of most other nondurable goods was maintained at

while

levels.

record

--•••-

Seasonally adjusted employment in nonfarm
establishments in mid-September, at 52 million, was little changed

trading markets in:

We maintain active

/■

Gulf Life Insurance Co.
Jefferson Life Insurance Co.

now

could be earning

which event
substantially

and raise

its

Life

Casualty Insurance Co.

in
Established

divi¬

R. S. Dickson
Hallingby

Jr.,

1919

& Company

INCORPORATED

Member

Midwest

general
.CHARLOTTE

Stock

Exchange

NEW YORK

CHICAGO

partner in the New York invest¬
ment

banking firm of White, Weld

and Co., has been named a direc¬
tor

of'San

Diego Imperial Corp.

issue.

from

increase compared with a

$11,087,637,834

for

summary

of the

National

120

Named Director
.

plants, 118*

ticket" dura-

dend.

Paul

steel

its shareholders

assure

some

tomer

down 310

Employment:

future,

;

.The following

■

cial

sumer

this
page

worth for the

net

.•!

' ;.r "

•

detailed summary of bank clearings in U. S.. refer to
Statistical Edition of the
"Chronicle," issued Mondays. For

the

and

INCORPORATED

123 South Broad St., Phila. 9«PE 5-7330

years

■

$13,412,004,353.

_________________

For

and it has aver¬

Capitalization of J. C. Penney
couldn't
be
simpler,
consisting
solely of 8,231,952 common shares.
No
bonds, preferred stocks, ' or
bank loans. Financial position has
been consistently strong. Current
assets on Jan, '31, 1959 stood at
$334
million
against
current
liabilities of $128 million. Finan¬

able

(best

year

with 4.8%;

1955

Ending Oct. 31—

it bas

1952

Preliminary figures compiled by the "Chronicle" based

Boston

merchan¬

net sales in

•*"-.

transport facilities in 32 states.

Philadelphia I———:,w

net

above

" /

York

Ci.icago

as a

well/Since

off

earned

common

(up

records

Week

New

percentage
proft as a
percentage of net worth. On both
of
these
counts, J.
C. Penney
comes

weekly clearings will be 15.1% above those of the corresponding
week last year.
Our preliminary totals stand at $25,927,607,119 '
against $22,526,892,002 for the same week in 1958. Our comparative
summary for some of the principal money centers follows:

standard finan¬

judged; net profit
of net sales, and

the

upon4 telegraphic advices from the chief cities of the country,
indicate that for the week ended Saturday, Oct. 31,-.clearings for
all cities of the United States for which it is
pqssible to obtain

improvement

which

Solicitor General

for the government and Arthur Steel workers Union presented the",

case

Clearings this week will show

year ago.

to
is

dising companies are customarily

since

dividend

over

the

Counsel for the

mines and 11

ore

Bank

itself spent
$15 million.

two

are

the government to de¬

Nationwide Bank Clearings 15.1% Above 1958 Week

company

little

There

Kaiser Steel, Detroit Steel and the Granite Steel
.%•/:.A
'

All'told the steel strike has closed
iron

major

;

than ownership
this arrange¬
bear

capital

the

not

validity of the injunction is being considered bv
the Justices of the Supremo Court, the steel workers' leaders and ;
the steel industry's representatives are being urged by government '
officials to continue (heir efforts for a peaceful settlement of their
differences although little headway is expected while both sides:
are waiting for the Supreme -Court's
ruling that may be rendered:
any day in this historic case.
"
■

spent
totally
$28
in that category for 1958,

million

ties,

unbroken

Goldberg,
While

Profit

geared
basic policy

Under

stores.)

1955.

28-YEAR HIGH

•

union side.

part

(Penney's

ment

Long,

most

the leasing rather

ment

years

probably take five

the

while

Japanese

Store rentals

effected.

are

for

are

have

strike

completed in the Supreme Court on Nov. 3.

were

sharing makes managers cost con¬
scious; if profits decline, econ¬
omies

J. Lee Rankin summed up

over, so

control.

costs

Steel

114-day

the

The arguments of the steel workers and

years /is - due not only to
management', good salesman¬
ship and shrewd buying but to

effective

termine the constitutionality of the Taft-Hartley law, invoked byPresident Eisenhower Oct. 19 ordering the strikers back to work,

many

buying from about 6,600 sup¬

increase.

its

ments signed by

fine

customers with both
revolving
and
instalment
pur¬
chase credit was not made merely

provide

profitability

Company

Penney

They

pliers. Purchasing is done all over
the
world, with European and

costs.

credit; by the end
of 1960 over 600 will be doing so.
The decision of J. C, Penney to
selling

are

consistent

The

negotiations

a settlement, and it is rumored that a fourth small steel
is ready to sign a union agreement'similar to the agree¬

companies.

depressed year,. 1958, .net profit
slipped back to below $47 million;
but this year
net should be at
an all-time high, possibly crossing
$50 million
for the first time;
and producing-a per-share figure
of $6.10 or better. +++:+4^—

its

have

the

date,

company

steady

pliers, and sells most of its wares
under the Penney name. It does

about 170, of Penney's 1,690 stores,

$1,450,000,000
this
year.
Net
profits jfciave also risen steadily
from
$33%
million in 1951 to
$49%
million
in
1957: In
the

goods

appliances

not

new

merchant.

durable

has a research
force
devoted
to
testing mer¬
chandise for such qualities as fast

stores."

The

expansion
of sales
of
such - as furniture

stantial
and

decades,

for

around 95% of total volume. Subr

credit.

was

past

chains,

million

Commodity Price Index

upswing for the
rising from
$880
in 1949 to probably over

Prieefndex

Auto Production

Business Failures

resulted in

Total sales of J. C. Penney

decade,

merchandising

Retail Trade
Food

Hawaii.

and

past

to enlighten managers
personnel on the details
techniques of doing a credit

Af ter all these

policy

move

of selected

credit operation

and

inaugurate

for

Alaska

been

fihe

Carloadings

TRADE and INDUSTRY

required

such as
business, too, Sears, Roebuck or Montgomery
Ward, J. "C.
Penney has been
earning
a
profit
in primarily a soft goods merchant
(clothing,
dry
goods,
variety
every
year
except
1920, items) with sales in this category
accounting for
and paying traditionally
w as

Electric Output

The State of

recent

the emphasis being on ex¬
pansion
and
modernization
of
favorably placed units, and re¬
placing poor earners with more
dynamic new stores in growing
population areas. There are stores
loday in 48 states and we wouid
certainly
expect
J.
C. Penney
stores
to
materialize
shortly in

and sales
and

years,

By-Dr. Ira U. Cobleigli, Enterprise Econoimrt
Current

stores

number

total

Cash and Lets Credit Grow
.

Steel Production

$800,000 this xear- There has been
substantial
increase. in
the

the

J. C. Penney Co. Takes

Thursday, November 5, 1959

(1892)

Atlanta

Columbia
Direct

Greenville

Raleigh

Wire to AIT Offices

Richmond

Volume 190

Number 5896

The Commercial and Financial Chronicle

(1893)

•

from August and 605,000 below the pre-strike level. The average
factory workweek also changed little in September. With hourly
earnings up somewhat, average woekly earnings increased and
were

above

earlier.

year

Unemployment

declined

low of 4.9%

and

further

rose

Characterizing

gold

Chicago banker

urges

confidence be placed in the steps our govern¬

ment is

will

critical

barometer

■_1%;

recover

outh: which

of foods declined while prices of other goods
increased furtheiv.:
"/ -.
;J - .

services

c e

should

Bank

Credit

and

Commercial

Reserves:

bank

loans

further

substantial

expansion

securities

continued

from

rency

Reserves

circulation

and

absorbed

were

.the Reserve Banks and
of U.

discovery of confidence itself. The
Rock which in

nation,

increase

buildup

Reserve

and

state

the amount of
lend-lease claims which still

and

local

government

bends

level

about 5% below the August high.
Market yields on 3-month Treasury

declined

with. 4.30%

out

month earlier. The Treas¬
was

pre¬

inventories indicate'{Key have ]less Tteap
10 day supply oLsteel. About 37% have 10 to 30
day supplies. Oi
21% have stocks beyond the 30 day level.

have

bare

walls, "Steel" said.

been swept clean

structurals.

and

Chicago, service

centers

are

will

are

nonregular customers after

the

strike.

They're

almost all their ingots, billets, and slabs to their

own

hard

Continued

page

Principal for

Brokers, dealers and Financial Institutions

gold and
exchange and yet the insta¬

and

franc in

our

rencies have had and
have

most

From

talk

Trade

Mr.» Jackson

Conference
13*

before

St.

CHICAGO, ILL.—George F. King
has

product

become

associated

der, 'Peabody
Clark St. Mr.

with Kid¬

Co.,

South

King, who has been

land, Germany/France, and Bel¬
gium, who have always been gold
countries.

reserve

Perhaps it is not impractical to
suggest that
gold
in the
final
analysis is but a token of confi¬
dence. With it a healthy basis for
trade and understanding may exist
but not necessarily so.
Our

nation

today suffers from

the

weight of high taxation, from
high cost of production, and from
an atmosphere of indecision to an

George F. King
in

extent which has seriously under¬
mined not only our own confi¬
in

dence

ourselves,

confidence
in

the

but

also

outside

many

dollar.

gold

and

This would

devaluing
mean,

years,

Haupt

that all

Chicago
was

office.

manager

For

Zilka, Smither

PORTLAND, OREG.—Jack Bader
has been promoted to head of the

trading

department

Smither

Co.,
Alder St.,

west

of
Zilka,
Inc., 813 South¬
members of the

Pacific Coast Stock Exchange, ac¬

cording

intention to revalue gold or to
the dollar, that there is
and

Co.

James H.

devalue

need for such action

Co.'s

of
trading department of the
Chicago office of White, Weld &

our

Recently I had the privilege of
talking with several members of
the Monetary Fund in Washing¬
ton, D. C. and on asking them
about gold and the dollar, the an¬
swer was invariably that there is

announcement

Bader, amative of Portland,
has long experience in the finan¬
cial field. He has been in the trad¬

that

highly improbable that it will

take place.
What we need to do
more than anything else is to have

•

ing department at Zilka, Smither
& Co. for the past six years.
Mrs. Carla Dillery has been ad¬

vanced

Second

Trader.

cur¬

being exceed¬
ingly slow because of a lack of
productivity of essential items.
"Triangular" and barter deals
a

false

sense

trading potential usually resulting
in further deterioration due to the

heavy premiums that often

have

been involved.

What About Gold?

Grace Canadian

Securities, Inc,

Members: New York Security Dealers Association

hear

time

reference

time

from

made

the

substantial

Correspondents inprincipal cities

throughout the United States and Canqda

quantity of gold which our nation
during the past few years.

has lost

Broadway, New York 4, N. Y.

HAnover 2-0433

NY 1-4722

Orders Executed at regular commission rates

Some have felt that this is

dication of
United

the

basic

Members; Principal Stock
National

Association

Exchanges of Canada
of Security

Dealers

Broadway, New York 4, N. Y.

international
our

and

in¬
of

financial

nation

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

avows.

so long ago that experts
saying that our nation holds

disproportionately high quantity

The

dollar

is not

were

lack of confidence in
States

policies which
It

through and confirmed by

the

During
have

tity

point

world's

the

lost

past

few

gold
is

years,

quan¬

and

said

Dominick

reserve.

considerable

our

where

gold

that

gold

Members New

York, American & Toronto Stock Exchanges

14 WALL STREET

Zilka, President.

Mr.

solve with progress

stimulated

for

the

sources.

it is

business

formerly in the
department
of
Ira
was

Prior thereto

imported items would be prohibi¬
tive in price and we would be
obliged to step up production to a
point that would equalize
our
anticipated income from export

investment,

municipal

the

world

It is not surprising to find
that some authorities advocate re¬
us.

valuing

the

continue to

difficult problem

Louis

19Sa.^ "y"

Kidder, Peabody:

gross na¬

the French

Nations with so-called soft
,

con4

would

strong trading position.

to us

G. F. King with ;

remain

must

Moreover

until confidence in the
steps which our
that Government is
taking to develop
and we trade and bring about an appropri-

not

was

find France and

have

Specialists in Canadian Securities

possessed

reserve

ijeborn

The metalworking weekly said steelworkers have lost
$1,113,-

nonpro-

has

France

sufficient,

It has cost steel companies $3,300,000,000 in sales

policy

the World

General de Gaulle took over,
confidence was
now

$632,000,000 in overhead, depreciation, and salaries of

this

The fact that strong reserves were
known to exist was not in itself

nothing to

000,000 in wages through to today in the longest steel strike in the

which

bility of the French Government
had' generated such a feeling of
uncertainty that confidence in the
French
franc
became
impaired.

buyers with long-term contracts.

nation's history.

that

substantial

force

because of

have been conscious of the

sources

fact

consigning
mills

transferred

our

than

ourselves

University, Oct;

has increased by
over $50 billion since the last de¬
pression. It is significant to ob¬
serve that the gold which we lost
during the past two years has
found its way into the reserves of
such countries as Great Britain,
Italy, The Netherlands, Switzer¬

ex¬

possible to acquire gold and build
representa¬
tive basis until today we find that
the British' Nation has iAiproved
its
reserve
position to "a point
where the pound sterling is re¬
garded as one of the hard curren¬
cies in international exchange.
For quite some time, informed

riddled, buyers

Producers of semifinished steel will have little

up reserves on a more

turning to alloys.

offer

medium

In due time it became

generated.

replacing galvanized stocks

with aluminum. Because carbon bar inventories

world's popula¬

the

confidence

the

brimming, warehouses
of the most wanted items—sheets, plates,

of plates and structurals
heavy construction.

its

sterity, many nations
their funds to London

Once

Shortages

additional cutbacks in

the

depleted; yet, because this nation

90% of capacity and six weeks to reach that rate of shipment.
Service centers in the major steel consuming centers are selling
the

uses

decided to pursue a policy of au¬

If steel does not start flowing from the mills
by the end of this
month, the country's huge metalworking industry will grind to a
virtual halt. Steelmakers will take at ieast four weeks to
get up

50%

tion

pound sterling. Fol¬
lowing the first world war, the
gold and dollar reserve of Great
Britain were found to be seriously

five

survey

and

over

change

metalworking plants will close or curtail
operations within the next 30 days for lack of steel, reveals a
survey by ''Steel," the metalworking weekly.
The publication said that
ar| estimated 350,000 metalworkers
have already been laid off because of steel
shortages. The number
will increase 40,000 to 50,000 a week for the next several weeks.
Forty-two percent of the metalworking compqnieft covert/?!, in
'Steel's"

confi¬

Shortage to Hit 4 Out of 5 Metalworking Plants
Within 30 Days

Four

presup¬

Knox.:
^

should

tional

Osmond A. Jackson
invariably
a
high
degree of credit worthiness. It is
regrettably true- that two world
wars have seriously disrupted the
equilibrium of international con¬
fidence, but it is equally apparent
that the road back holds promise
only if full confidence is restored.
It is interesting to "observe that

3.90%

cash

dollar

inviolate.

one

bills

offering of 5%. notes of August 1934
heavily oversubscribed and the new notes were quoted at a
mium in early trading.

Steel

feel

finds

early October and then rose to above 4.25%, a new high, while
yields on most other outstanding bills remained below earlier
on long-term Treasury bonds averaged under 4.15%
$2 billion

stability.

be probable as a direct reflection
of imposing gold holdings' at Fort

surely cannot help
that the position of the U. S:

understanding

mean

cor¬

emblem

have deferred from time

weal,

and

dence exists

highs. Yields
ury's

eral

dence

in mid-October compared

greatest

is the

sense

re-establishing of

fidence

of the
debts

to time in the interest of the gen¬

where> confi¬

have

international

which

affords

poses

declined from the mid-September highs while yields on corporate
bonds have increased further. Common stock prices
recovered
somewhat in late September and have since changed little at a

basis

in g

„v

our

This

to consider

servicing

Under stand-

most maturities of U. S. Govern¬

that

remain unpaid, not to speak

assurance

float.

and

devalued.

2-way' street/
the

Treasury

S., Government securities.

securities

Bank

our

which could well

could suggest a lack of confidence
in our dollar and yet when we

our

.the/

deposits at
reduction in Federal Reserve holdings

Security Markets: Yields
ment

world

nations

September.. Holdings

of U. S.
decline, however, and total
bank credit changed little. The seasonally adjusted active money
supply declined further, and at the end of September was about
2V2 % larger than a year ago.
'
/
Member bank borrowings from the Federal Reserve averaged
$910 million and excess reserves $450 million over the four weeks
ending October 7. Reserves were supplied by an inflow,of cur¬
Government

revalued

should

pause

amongst, the.'

showed

dollar

Plym¬
the very

represents

nerstone of

in the

progressively interdepend¬
of ours, it has become
increasingly obvious that the in¬
terchange of quality products and
world

ent

and

consider more the Rock at

appropriate

and replenish their reserves.

In this

retail prices

and

are

trade,

and cites instances where countries without

able to

were

Perhaps-we should rededicate
ourselves to the principles of our
constitution.
Perhaps we should

foreign markets.-List prices for. newly introduced passenger

were substantially unchanged from
1959 models. Livestock
prices declined sharply in response to a large increase in market¬
ings. In August, the consumer price index decreased one-tenth of

healthy

Monetary Fund and

World Bank in these respects.

throughout the world. He discounts reports that

devalue gold,

gold

autos

out

taking to develop trade and to bring about

investment climate

domestic

Vice-President, International Banking Divi¬

sion, Continental Illinois National Bank and Trust Co. of Chicago

continued to decline from

materials

basic

de-

We should support the

efforts of the

By O. A. Jackson,*

While average prices of industrial convr
stable from early September to early October,

number

but nonetheless

process

-And
International : Trade
ip-liy. XII11^
.4- ±
VLyertibilily.

Commodity Prices:

prices of

throughout
This' is necessarily a

the world.

'
..

in the spring.

durable goods. Dealer stocks of autos
their record summer high.
r
t

slow

Distributiohr Stnkesv>and /unseasonably warm
weather in
September contributed to a decline of 2% in retail sales. While«
3% below the July peak, sales were 7% above a year earlier.
September decreases in sales were greatest; for autos and other

mod it ies remained

ate investment climate

about

seasonally to 3.2 million m September; after-seasonal adjustment,
unemployment was 5.6% of the civilian labor force compared with
the post-recession

■

NEW YORK

The Commercial and Financial
Chronicle

(1894)

dently

attitude

MACKEY

BY DONALD D.

exercise

the

historic John

Nuveen &
CompanyAHyn & Company-J C.
vestment, assured by the low¬
radlord & Company-Ira
est
prices of municipals in Haupt & Company and Horn-

TAX-EXEMPT BOND MARKET

toward

balanced

in¬ A

about 25 years and aware that

the

present

likely to continue attracting
broad investor interest as "Bargain for Large Investors"
past week and prices leveled their general price level can
Because of these considera¬
after the minor market shake- improve
out

eral bond market level,

brought about by the reaction in Government issues a

-*eek ago
of

the

market

•

generally.

The

continues to be

ear-

has

Jo the extraordinary favors
ab^e yie^s.^y?
J.?

abrupt
would

the

and

continuance

its

have

almost

been

market

the

cost

broad, interest'that

siiA

vlviHc

Index

and municipal obligations to
high bracket investors. This
is apparently a trend of more

Up Three Points

Since Sept. 30

than

The Commercial and Financial

duration

short

simple

reason

for

the

that taxpayers

Chronicle's

High Grade netting from $50,000 to $60,Municipal Bond 000 a year, of which there
Index has reached 3.43%. On are now many, can buy sound
Sept. 30, the Index was as tax-exempt bonds to yield 4%
State

low

and

3.58%.

rise

The

REPRESENTATIVE SERIAL ISSUES
Rate

California

(State).....

Maturity

3V2%
3%%

___

Bid

Asked

1978-1980

3.75%

1980-1982

3.45%

3.60%
3.30%

1978-1980 /3.50%
1978-1979
3.45%

3.35%
3.30%

Pennsylvania (State)...
Vermont (State)
New Housing Auth. (N.
Y., N. Y.)
Los Angeles, Calif
Baltimore, Md.__

3%%

____

.......

....

New Orleans, La

Chicago, 111

Boston, Mass.

...

________

November 4,
DOLLAR

1959

(Prices and yields

3.30%

3.15%

1978-1979

3.25%

3.12%

1977-1980

3.40%

3.25%

3%%

1978-1980

3.85%

3.65%

31/4%
31/2%

1980

3.65%

3.50%

1980

3.50%

3.30%

31%%
31/4%
3%%

1979

3.90%

3.75%

1977

3.85%

3.70%

1977

3.85%

3.70%

—

Index

are

First Callable Date
(as a whole)

thelan Co., Wash;
5% 7-1-2013

1974-1975

3%%
3y2%

—

The

volume

current

approximate)

Call

Offering

Price

latter fact is not

reliable

necessarily

indication

Reg. Port

_,4^i 7-1-1995.

-1/,

M*1974

104^

7-1-1962

1031/2

951/2

(>:<)

4-1-1962

103i/2

871/4

(«)

Toll"Sw«
111985
ToSloVSwa,"M'"78
:innoiT

41/4% 7-1-1992

105

183

Yield to

,0'/2
■»

7-1-1967

103

103V,

4-1

Tu'r"*ke

1'I'"M
1 1 1958
HSuS;%-A«toiii
5"'""62
-a**:"-10"1"1969
Smi'vork Po»w Authority
M-U58
AuttoHty

Massachusetts Turnpike

Authority

3.20%

1-1-1995
Kew York Power
Authority

1-1-1963

sj^l^rnp'ike'/Authority

TS.S'SpiiuAuiioriVy-L
J.05%

7-1-2004

Virginia Toll Revenue
3% ?-l-1994...
^

-<*) Unchanged.

104

' 108
104

:■

'
-

7"1""6°
S"1"'959
8 1-1959

<•>

90,/2

dnfi°'

4,06

4790/

t-iy/o
3-»3%

<•»*

4-33%

+3J

3.55%

SfiVi

underwriters

the

were

concentrate, and

the

Los

Angeles

(1960-1983) award¬

Oct. 27, and scaled to
less than $4,000,000-re¬
main in syndicate account. As
on

Enfield,

Kane,

Conn

Cook

—

Counties
46, 111..

School District No.
St.

Joseph

School

District,

Mo.__
Calif...

Santa Barbara High S. D.,

November 10
Caddo

Parish, Parish-Wide

S. D.,

Louisiana

™ft

7-1-1959

104

f*\

( )

3.85%

9-M959

105,

(*)

3777

4.40%
,OCft/

3,77%

1961-1970

10:00 a.m.

3,000,000

1960-1989

Noon

1,000,000

1960-1969

7:30

p.m.

2,000,000

1961-1980

2:00

p.m.

1,487,000
2,800,000
1,000,000

1960-1970

7:30 p.m.
4:00 p.m.

1960-1984

10:00 a.m.

1960-1979

1:30 p.m.

1961-1989

4:00 p.m.

1,000,000
Free Sch.

Union

1965-1980

5,000,000

Minnesota

Hempstead

Dist.

No.

2,000,000

11, N.
Maine, Union, Nanticoke, Newark
Valley and Owego Central Sch.

1960-1988

10:00 a,m.

Cobb County, Ga._

November
Sacramento County, Calif

Wash.

__.

10:30 a.m.

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

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

(State

South Carolina
Wake

of)

Oct. 28, scaled to

mar¬

yield

County, N. C.__

the

case

Pennsyl¬

Sewer

District, La
(State of)

Rochester

serial
sold

bonds
on

the

only
in

long bonds

the

The

scaled to

On Oct. 29 the Florida De¬

the

•:

5,800,000

.1960-1979

Noon

16,350,000
1,000,000
1,329,000
10,000,000
4,250,000

1960-1979
1960-1980

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

1962-1979

11:00 a.m.

1960-1979

Noon

1961-1980

11:00 a.m.

7,000,000
56,000,000
2,296,000
2,500,000

——^

November 19
Indianapolis

Redevelopment

Philadelphia,

—

1960-1969

1961-1983

2:00 p.m.
2:00 p.m.

(Thursday)

Dist.,
2,730,000
24,780,000

——

—

6:00 p.m.

1960-1989

'1962-1982
1961-1990

Noon
Noon

November 24 (Tuesday)
Escambia
No.

Fort

Co.

Special Tax Sch. D.

1, Fla

Wayne,

Ind

Santa Monica Unified S. D.,

Calif.

Los Angeles School District, Calif.

4,000,000
2,600,000
3,000,000

1960-1978
1960-1984

2:00 p.m.

2,500,000
21,500,000

1960-1979

9:00 a.m.

1961-1985

9:00 a.m,

10:00 a.m.

1960-1990

2:00 p.m,

December 1 (Tuesday)

velopment Commission s old
$9,500,000 Polk County
(Bartow) road bonds (gas tax)
to

2:00 p.m.
»•.«

(Tuesday)

(Wednesday)

—:

bonds Pittsburgh School District, Pa._-__

account.

were

Spec! S. D. No. 4, Minn.

vania's General State Author¬

$25,000,000

——

November

Indiana

000 remain unsold.

_____—

Greater Baton Rouge Consolidated

response was

gratifying and about $5,000,-

—

(State of)___:——

Poughkeepsie, N. Y,

ket

1964-1972

(Monday)

___—

Boston, Mass

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

1963-1989
1962-1991

- 2,475,000
....—3,000,000

November 17

1999) which reached the

4.05%, investor

1,000,000
2,760,000
1,000,000

.J-

Indianapolis Sanitary District, Ind.
Orange County, Fla._

3.80%.

7"1"1'63

4,000,000

Dove'r-Eyota Indep. S. D, No. 533,

New York

remain

4.05%

p.m.

(Tuesday)

—

the
Baltimore
County,
Maryland, offering 'of $20,000,000 serial bonds (1961-

4J4%

4.01%

7:30

Page

for

$6,000,000

—i/2

2:00 p.m.
10:00 a.m.

November 9 (Monday)
Edina, Minn.

Tacoma,

County,

28th,

1962-1986
1967-1979

3.91%

1 '

___%__

$21,150,000

also

' 82T2

<*>

Roanoke, Va.

suc¬

earlier emissions.

(1962-1986)

3.80%

view of

state

i,/

WV!4

and

favorable

par,

ity

103'/2

103
103

«•%

1,175,000

Oklahoma

Fullerton Union High S. D., Calif.
Pima County School District, Ariz.

1,950,000 '

Lamar Consol. Indep. S. D., Texas
Oklahoma Co. Indep. S. D. No. 89,

trict issue

4 /o

tqio/

4,100,000

Delaware

3.91a

;

(Sanitary District), Ind. ::

.Jackson, Tenn. ;

334 %

-,/2

103

Ihe

issue.

California, Flood Control Dis¬

811/2
95

Offerings Well Taken

Hence

5.12%

103

were

4 24%

—1/2

104

the

won

4470/

103'/2
103

(*)

4
1"1'1970

Tichmond-Pefe/burg Turnpike
Trt-S p7S5Calif.-

103

——

4,57 /o

««

^ '
103

7"1"1'60

previously noted in

By Investors

4=70/

UUatt

10-1-1962

the

The

this space, is $55,125,000 New
y0rk State serial bonds, bids

District No. 1, N. Y._____
3,720,000. 1960-1988
Mississippi (State of) (Greater
Port of Pascagoula)
1,000,000
1964-1984
The observance of Election Mississippi (State of)_.——
14,000,000
1960-1975
day served to materially re¬ Orange County Sanitation Districts
California
7,300,000
1961-1989
strict
the
volume
of
new
Shelby County, Ky._____-_—1,350,000
1960-1989
business in the present week.
November 12 (Thursday)
As a

Recent

cessfully, their selling activi¬

Maturity

"*•
<*>
103O

Kansas Turnpike Authority

3%% 10-1-1994...
<entucky Turnpike Authority

reach

...

5"1"1968

;.•••

November.

Larger Issues Scheduled For Sale

Hammond

the

thlTmoney market.

regards

able to

Net Changes
from Prev. Week

1081/,

Florida Turnpike Authority
31/4% 4-1-1995
Srant Co., Wash. PUD No. 2

larSest>

the account

Yesterday (Nov. 4) Atlanta,

tivity regardless of the politi¬
cal persuasion of the
party in
power or their philosophy as

ties
100

Shicago-O'Hare Airport

S*%
Chicago

municipal financing In the following tabulations we list the bond issues of
is moderate, although heavier
$1,000,000 or more for which specific sale dates have been set.
than a year ago, but the
ag¬
Information, where available, includes name of bor¬
gregate of issues up for con¬
rower, amount of issue, maturity scale, and hour at which
sideration
on
Election
day bids will be
opened.
was relatively smaller than in
November 5 (Thursday)
recent
years.
However, the

market,

PUD No. 1
1-1-1978

market

fi,

scheduled

are

issue

State and

result,

3.43%

QUOTES AND RELATED INFORMATION

lssue

The

par.

scaled to be less tax exchange business
financing problems
yield 3.50%. A good investor in tax-exempts than at this
persist, and the volume of
reception is reported.
time last year.
bond financing is not too ac¬
curately foreseeable.

the
BOND

SSn
nnrfi
$500,000 left

in market and investor recep¬

New Jersey Highway Auth., Gtd._.
New York (State)

Cincinnati, Ohio

long bonds

ernment

Connecticut (State)

coupon, were

re-offered

goes on, other im¬
Company
portant strikes forebode, Gov¬

dollars

MARKET ON

i^espsec.
lZWeT lWe?ks al T11 as five issues. Thus far only six
^o^^st^bondsL-issues of $10,000,000 or more
a 4.40%

approxi- or more which is the equivais close lent of 16% plus on taxable probable financing trend.
Most State and municipal bor¬
to three
.points. However, in. securities,
rowing is not subject to refer¬
some
disregard of this recent
Tritely put, it takes a lot of endum
and this is particularly
rise, and with continuing inflation to overcome the taxtrue insofar as
large negoti¬
awareness of the
tight mon& exempt advantage in the meated offerings are concerned.
situation
and
the
creeping dium or higher b r a c k e t s:
During the next 10 years it
rise in consumer prices porMoreover, substantial tax reseems
reasonable to expect
tending, as it must, a further- lief seems not a matter for
that school, road, sewer • and
ing of the inflation tendency, foreseeable calculation.
other urgent public financing
State and municipal bonds are
Briefly, an investor can pruneeds will require the utmost
as

rnate

impending
uninterestingly light

in both volume and

recently been attracted large2y through relatively favor-

rise, had

The Calendar of
sajes

medium and long-term taxexempt bonds. Thus some o
J^e growth type investing is
turning, temporarily at leas ,

jier

Thursday, November 5, 1959

a
bargain for
large investors and will hSdflRv
re
$8,335,000 on wbich will be opened
(1960-1986) general obligat-C
be until a considerably
higher tion bonds. A
group headed
v\
There
appears little
price level is reached. How¬
? As
so™6 stock profits are ever, market factors and their by Bankers Trust Company- likelihood that important ne-^
progressively being t a k e n, timing will, as always,- and Morgan Guaranty Trust Com- gotiated type financing will
there persists a tendency fpr unexpectedly, intervene. The pany-Glore, Forgan & .Com- come to market in the near
pany and Kidder, Peabody & future
investors to invest partly in steel strike
Als
there seems to

firm, however, and the levelj'ing out would seem normal
and
perhaps good for the
business

tions, the tax-exempt market

most

Mullicipals Attracting Stock
Markct Money

Monday. The tone

municipal

against the gen-

Calendar Continues Light

high tax levels
prevail indefinitely.
bearing

will

The tax-exempt bond market
lost momentum during the

Van

Ingen &
Company Group, including

Columbus, Ohio
Los

»_____

Angeles County, Calif
.

10,010,000

1962-1.986

2,444,000

1961-1980
J

Noon
.

December 2 (Wednesday)

Peoria Public Building Comm., 111.

December 9
La Fourche Parish, La

4,800,000

1961-1979

(Wednesday)
1,000,000

1961-1980

10:00 a.m.

iVblume

190

Number 5896

1he Commercial and, Financial Chronicle

(1895)
American

The Troubling Elements

market

has

benefit to American

.been

task

these

whole load.

whatever degree it provided them
with an equal, service at lower

However,

consumers

other

demands

the

were

not.

were

disturbing

An-

On the other hand, every exists.
such unit vwhich might have been
Treasury's
produced here if we had not per-

Seventeen out of eighteen indicators, Professor DeGraff
finds, point

strongly toward
"records

overall

higher national economy and new high

categories.

many

The

author

about the stock market's direction.

has

his

our

out

line

fingers crossed

competitive.

Yet, despite his optimism about

have

the economic

barometer, the Professor's appraisal of other economic
questions leaves him quite concerned about the economic outlook,

and convinced that the

of the

anti-inflationary stand must continue.

troubling circumstances evaluated

strain

paint

last

A p r i 1

bright economic prospect
for the year ahead.- In
fact, there
when

economic

the
first

they were last
Spring..

tional
f

Bureau

urait

ment
more

effective

...

than

have had

The

and

establish
ment

the

selection

"leading"

national

after the first

the

indexes

When
-

which

up,

ippf

the

two

msepa-

rec^sion
recession
the

was

—

oao may pi o

basis

That
mat

recoveiy.

which,

spring of 1958
nomic analysts

thot

moving

r^-overv

to
to

number

went

the

eco-

counter

the

very

cerned

(the

country

1946)?

wjth

that

(2)

•

were

mi t-.i

-office

■

7!®

jntimately

these

re-

vield 4%

iiinini

3markets
if'.

established
to

wedrp^pr

*, 17

the

1958

tors

co-incidental

fell

rBB

-movement

line,
out

indica-

confirm

the

recession,

And

by early spring of this year,
the lagging indicators were point-

ing

little
the

well.

else

Thus, there

spring of 1959
that this

—

ago—but
over-all

good

was

could

anyone

say
in
six months

would
for

year

the

economy.

Below

these

are

three

lists

—

seen a rising

■

manufactured

imports

qtito

sources

supply, and (b) foreign
competitors have been gaining increasing
access
into
American

manufacturers'

our

goods.

indicators, together with where
Every unit of such goods
they were pointing last spring and duced abroad and sold in
A.

1. New

Sensitive

orders

2. Residential

Indicators:

for

durable

construction

,3.

Average

work

Business

failures

New

Sensitive

rvomyiri r»

■

i/\nr</%pi

(no

Somewhat

laggard

epide

still

up,

Up
major concern

Bank

clearings
Freight car leadings

Gross national product
The

Personal

Retail

for the efforts

hnvp

nnt

^irobablv

mnvpH

thp^

Consumer

Manufacturer's

instalment

debt

inventories

' ^ f f
f5?

Up (setting

new

records)

the

push

other

type

hand, the costinflation pressure*

the

first

six

months

over

$20 bil-

1959

1.8

average

A year

ago about 1.5 million workers xe-

ceived
.

rii

increases

wage

undei

contracts negotiated during
VT

L.,

refinanced

Continued

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

on page

offer i* I

Diego Gas & Electric Company
Common Stock
^1©

much

the

first

any

to certain conditions, to purchase
unsubscribed shares and, during and after the subscription period, may offer

shares of Common Stock

•

as set

forth in the

•

Copies of the Prospectus

may

be obtained from

any

of the several under¬

writers only in< states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

Blyth & Co., Inc.

thS

tWs

half

1958*

needin2 ±ands.
(2) Business capital investment

from deprecia¬

come

allowances

and

retained

earnings.
(3) The higher rate of business
operations
has
required
more
money for financing receivables,
the like.

Net
half

consumer

this

between

has

credit

year

versus

extensions

the

first

Dean Witter & Co.

Ilarriman Ripley &
Incorporated

M ^rin T

Merrill Lynch,

PVnner & SmUh

and

half

put

Revel Miller & Co. Inc.

Elworthy & C®.
Mitchum, Jones & Temple ten
William R. Staats & O®,

Crowell, Weedon & Gi.

sum

of these

strain

money

changes

recovery

recession
on

seems

indeed

the money market.

fair

market

grow¬

from the

have

was

say that the
equal to the

E. F. Hutton &

Company

Paine, Webber, Jackson & Curtri
Francis I. duPont & Co.

Brush, Slocumb & Co. Inc.
Shearson, Ilammill & Co.

F. S.

Moscley & Ci,
Weed en & C«.

Wagenseller & Durst, Inc.

Incorporated

J. Barth & Co.

Blair & Co.

Bingham, Walter & Hurry, Inc.

Incorporated

Cruttenden, Podesta & Co.
Evans MacCormack & Co.

Irving Lundborg & Co.
Sutro & Co.

Davis, Skaggs & Co.
Fairman & Co.

Maxfield H. Friedma

Morgan & Co.

November 5, 1959.

Wulff, Hansen & Co.

Daniel Reeves & Co.

C. N. White & Co.

Stephenson, Leydecker & Co.

Fleet & Co.

Hooker & Fa/

Stern, Frank, Meyer & Fo/r

Incorporated

Wilson, Johnson & Iliggins

Dempsey-Tegcler & Ce,

J. A. Ilogle & Co.

Mason Brothers

H. M. Byllesby and Company

Pacific Northwest Company

1958.

Co.

Smith, Barney & C<9*

Pierce^Fenner & Sm.th

William J. Collins & Co.

The

fully

The several Underwriters have agreed, subject

protect

_s^™"ti1 tnat xnis

as more

But

Up
up

ing out of the

end)

good*

pponnmv

Wage-Push Continues
Qn

business was liquidating inven-< Stone & Webster Securities Corporation
a}, an ann.ual rate of $7.5 First California Company Lester, Ryons & Co.
*kus freeing up funds. In
Incorporated
Shuman, Agnew & Co.
thet fll\st uhal£ of this leaT' by Schwabacher & Co.
c0
?s['. business has been ac-< Walston & Co., Inc.
Bateman, Eichler & Co.
cumulating mventory at about the
Hill Richards & Co.
same rate ($7.5 billion), and thus
Hemphill, Noyes & Co.

1957-1958

Sharply

In ^^nnef

Se d^scuss^n
(1)

so to

repayments

Indicators:

incomes

■

rpu0,.0

balance

Up
Up, except for the steel complex
Up (may reach S500 billion by

sales

first

Still going down

our

can

age increase in wages was roughly

to check inflation.
cvnitml

for"the**ncreased about $2.5 billion in the

declining

year

Lagging

after adjusting

strike

months, plus an additional
biUion of seasonal deficits

It would not have

except
+rT

iutely essential to do

(4)
Up-strongly

production

record November 4, 1959, which rights expire November 24, 1959,
> *" '
set forth in the Prospectus.
'

and

Indicators:

production

Non-farm employment
Unemployment

(?)

industrial

but
4.

products)

the

oPrvipes

circumstance.

tion

trend)

Up (except farm
Probably still up

steel
2.

strong

trun
anH

and this is all it

Rights, evidenced by Subscription Warrants, to subscribe for these shares at $23.48
per share have been issued by the Company to holders of its Common Stock of

which could

Up
and

Co-incidental

Industrial

Low

Up
Up

commodity prices

Still very

has stepped up between $2 and
$3 billion, annual rate—not all of,

Down

construction
B.

prices

Commercial
-

raw

the

Up (near boom)

(hours)

pro-

August-September

businesses established

Stock

week

April

goods

dis-

consequent

for

balanced budget, and it can strive
^or
money supply that does not

high interest and tight
money position is not an isolated

WOnlH

versus

productivity—to get so far out of
line that (a) countries formerly
importing U. S. products have
been finding other and cheaper

mone-

the first six months. The percent-

San

ments at substantial losses.

trend

costs—wage costs relative to labor

and

strive

can

500,000 Shares

vpq—

manufactured exports, because we
have
permitted
our
production

in the

This is not

But this

position

(4) We have

A little

!""ynhl°^eqlnlaLff°fL°fr

are

m world markets.

markets, with
placement of

Indicators Point Up

months

S"'happened

industries

only

effort*

stlblfdonar-^

of fiscal

policy.

has
its

use

weapon

iary

really

weapon

—

the integrity of the dollar.

one

ai^®ar

pr°'hcrnm<h
;
Through

•

AdminLfration

market

About $78 billion of Government debt will mature and will

.,,.in

(3) ' Many American firms have

lm-

point

+hat often is overlooked is that+h©

TheOTtae

—•

cheaper

produce them here.

the infla—

However,

n9* 01?ly .what has happened but granted wage increases
wh^ is likely to happen that has million workers, with the
caUsed the squeeze.
increase being about 4%.

non has

almost-5,0%

and
and

considerably

familiar with the Ad—

are

problem

ong

went^to's^on Sent l" Go'vCTnw|«t 1^5% o^Sepy Govern^

optical

fight

^mberJo> yield 4%. ihe prime

manu-

xic.HL

Many
+iQp

men*;(3to
5 years) became un- ZZfnFZ
settled both as a result of Gck*—

next 5

S'e7?o

in-

jnto the picture.

ministration's stand

have to be re(inanced in the next

(2)

have

This is where the inflation
comes

Govern-

term money market and to the
.use of Treasury bills maturing
*n *ess iban a year.

Reports show that 96% of 526
major labor contracts signed in

con-

problems

Why

still goes on.

nI Ai
^ is now -0%.-

becoming

machines,

Ihv-ir^nnS
able

The

money

Em-

goods,
electrical
Tu
t'i
lePtncal equipment,
equipment,

than

Governments.

ernment?

ttti4-Vi-5v,

intermediate-term

A»Aci n

facture-

the last three quarters

can't

the

inflation problem as strong as we
have except that it became abso-

thB

term

money*

tentional, had-boiled, tight money
ponCy under these conditions?

not find .buyers within the
4 *4% legal interest rate on long-

f°r

the

answer

something more
rates currently

up
to meet all these
both commercial and Gov-

e Government

mitrnvfi

to be

But

5% to

have

The Federal Reserve

Or, the

Many lines of light

eaT,.
^a^
tinrl

tiat

The Treasury's need for money
and the fact that it can be only
obtained in the short-term market
here in mid- has both unsettled and squeezed
'
'
the money market. Moreover it is
would

with which

in which most

mosj.

nQW

some

essence

outlook

form

out

ttntldThfJ ^icpfeiZ"^
betn-J^ing t04heStab,UsK forf'gn
hnttnl
nfd conditions
eondiflnf would
-S i!1 could
siibsiidiaries
as tihe only way they
bottom and
hold
competitive
,

high

stand the

now

seem

loosened

circumstances forced the Treasury
almost entirely into the short-

Market

expected

neces

rate in our auto in-

wage

than

the

April, I certainly

have

circumstances

are

essence

of this question

dustry.

— — —

economy

first.

economic

precisely

the Money

not

The

of employ-

(1) Foreign automobiles were
reaching a figure of 8 to 10% of

from

' inct ifir»atinn

with

national

from
trom

■

move

—

Sjiring of

■

read

leading
indicators
they began to do in

—

the

—

the

that

though I laid

become

"lagging" group of all auto sales in this country. - indexes which generally move be- These foreign, autos are produced
hind the others, but tend to con- .at labor costs as low as 35 to 40%

turn

from

economic

311 t0° apparent.

That

indications

^native except

trends last

'these

fuller level of employ-

this

cumstances that

they move with rather than
ahead of the economic trends.

the

yet

economic

justify, there

econ-

group.

we moved strongly to check in- J™icni were sow .at auction oy
Nation - and to preserve the in- we Treasuiy, ,n mid 1958 to ^eld

.is,

firm

Strain

Ithese

tegrity of the dollar, would we
■
'
then face more unemployment?
of "co-inci- My concern grew out of the cir-

the

will take.

J And third,

would

lu' ln sf>1

inflation.

converse

sensitive

•

now

the

issues

ployment Act of

i The second group
dentai" indicators, which typically
move

and-vital

been

which move early in any
time of economic change to point
omy

•

optimism

The result of their ef-

direction

mi.

first.;

ne.essapr . to inflate in order to re-

group,
"the

down

they were (1) would it be
they
were (!) would it be

three groups of such indicators:
•

..r able,

the past.
has

centered .around

Herrell De

indica¬

'forts

Tuite

economic .-barometer
j

and it then became

OA! 1

complex of questions about would be concerned
.which J was concerned.
These
-September.'
4
was

devel¬

precise

the

go as

Feb-

preVailintf

eroment financing and as banks
trend that has become apparent ?lld business concerns began sellwith
respect to some
lines
of J,n§ such holdings to raise funds
American economic production."
f?r' business expansion
These

cheer, because clear weather

„H°wever last

tors that would be
„

turn

•barometer seemed to

opment of a
series of eco¬
nomic

would

they

bonds had to

find- buyers

things

would

words, it is possible

-all... the

has

centrated

the

ust

tis indicated.

Economic

o n

]

read

and

Na¬

Research
rc

that

ones

In other

recent

the

consequence

scene—and

^0r^0^r» ^hls ls,t.rL}f
for
which are

?i?ri^S'

univer sally

years

cate-

in many

.the leading indicators

favorable"

high records

•n^w

sig¬

were

the Italians and others have been

O^;fontr^dnn^v0v^
no
national
economy,
with faces
disappear

higher

(di¬

rection

nals)

a11

in¬

dicators

And

where

tlmes

Germans, the Japanese, the Swiss,

taking,the business. Though some
they are pointing now. 'people will not accept the fact, it
Thus now,• as last spring, one still is a law of economic
life that he
must say the indicators are point- iwho will not remain
competitive
,

possible

permitted

degree we in March the Treasury went into
competitive, the long-term money market with
other ' coun- a 4% coupon in quantities that

■.

was

the

and

now

Who knows what interestrate such demands will require?

over the position we
clearly saturated the market at
previously held in world mar- the 4% yield. By the late spring
kets, including the market in the months new high grade corporate

Some

market, dollar's international integrity, continu¬
ing wage-push, inflation and the Treasury's debt financing problems.

remained

between

ruary.

T)eht Problems

tries to take

foreign competition,

are:

not

have

we
-

the money

bil-

:market, will have to

money

be raised

™®suJy siDe^t Pl0*>lems

nutted

$26-$27

as matters now stand,
be obtained onlv in the short-

can

production cost to get
The Federal Government in
has reduced employ- fiscal—1959 had to finance "a
$12
ment opportunity in this
country billion deficit
to a total debt of
—employment we might have had $290 billion now versus $278 bilif we had chosen to remain more lion a year ago. In
January and

By Professor Herrell DeGraff,* Cornell University, Ithaca, N. Y.

Thus

which,

te^

circumstance

price.

covered

lion

they

J. S. Strauss & Cn

Boettcher and Compart/

Lawson, Levy, Williams & Stera

Stewart, Eubanks, Meyerson & Civ
Harold E. Wood &

Company

The Commercial and Financial Chronicle

(1896)

INVESTMENT LITERATURE

lly Leonard Keesing, Author of "Money and Inflation-Standard¬
ized or Index Money"?; "Crisis or
Dissolution?"; and "Money

the United States.

FOLLOWING LITERATURE:

PARTIES THE

Alleges gold price
change here would entail necessity for other countries to do like*

wise.

chase of gold by the public.

crucial

international

Points to experience

States—New York Hanseatic Cor¬

companies of the United

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

—

Monthly Investment Letter

Also avail-

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

Dollar

Burnham and

—

the

tion,

able

Limited, Dominion

Review

—

Cochran, Murray & Co.,

—

Building, Toronto, Canada.

Bank

Stocks—Review of 25 stocks in the November

Canadian Copper

Book"—Draper Dobie & Co., Ltd., 25 Adelaide Street,
West, Toronto, Canada.
Canadian Economy —- Review — Saunders, Cameron Limited,
"Blue

devaluation

Street, New Yoik 5, N. Y.—200 a copy; $1.50 a year.
same

issue

1959, and Industrial Averages.
Growth in Consumer Industries—Review—A. M. Kidder &

Co.,

Chemical Process Co. and

Pointers

Tax

Hutton & Company, 61

available

bulletin

Securities

1959—Booklet—E.

Cement Co. and

market

performance

•

Convertible

With

Investments,

a 20-year period—
Front Street, New York

reference to
South Util¬
ities, Orange & Rockland Utilities Co., Consolidated Natural
Gas Co., Peoples Gas Light and Coke Co., Northern Indiana
Vanden BrOeck &
same

Co., 55 Liberty Street, New York 5, N. Y.

circular

are

brief reviews

lium Co., International Rectifier

Brush Beryl¬

other

currencies
into

—

not

gold, and
having lost
cur¬

Function

the

time

when

Gold1

the

free

American

Investor,

Trinity

Continued

Place,
page

important

world's

gold

banks.

parities

In this

currencies'

have

the

never

ceased to be a basic element in
the price structure of commodities

; moving in the international trade
channels. It follows that a nation
-

change the gold parity; of

part

Join Hamilton
;

Whatever

are

do with

profoundly af¬
not, without
dislocating everything, raise the
gold price alone. We could do it
only if all the other nations which

that- way.

catastrophic effects

gold
the

With Bear, Stearns
CHICAGO, 111.—Sigmund H. Lind¬
is now with Bear, Stearns &

price

ner

same

Co., 135 South La Salle Street.

This

With Hay

Reasons?

there

reasons

tial

increase

One

would

are

ZANESVILLE, Ohio —David C.
is now connected with Hay

ques¬

Jack

indeed

Investment

for. a substan¬
gold price.

that

look

EUGENE,

There

has

Here

has

never

ceased

ounce

point of $46.50
the

end

per

in the flow of its trade with other
lands.
to

It is therefore not possible

consider

increase

the

(Special to The Financial Chronicle)

gold market in Switzerland.
we find that, after reaching

its highest

E. M. Adams Adds

gold market should give
fairly dependable answer to
that question. That is easily done.
a

free

National

First

Co.,

Bank Building. I

the

think

In v. Co.

(Special to The Financial Chronicle)

naturally raises the

tion of whether

the world

trade situation be avoided.
What Compelling

("Special to Tee Financial Chronicle)

only could

representative

Street.

maintain their currencies at fixed

their

Company

the
South Plains area of Texas, with
headquarters at 3517 Forty-eighth
Dallas

and

We could

and

Securities

Hamilton

key¬

currency must

parities, raise
simultaneously

LUBBOCK, Tex.—Robert E. Estes
has become
associated with

international
commerce

currency.

Robert Estes to

world

stone in matters of

our

small and

fect others.

market.

would,

continue its policy of sell¬
ing gold to other central banks

the

playing

corner

free

Reserve

course,

gov¬

trade and finance.

the free

the

devastating

little

obscure

tween the central
way
•

two

America is not

compelling

its currency without consequences

Investor"—The

banks has been confined to its use
in settlement of international
pay¬
ments through gold transfers be¬
•

Federal

The

the

obtained

dog,
con¬

order

wind out of

higher gold prices,, which, as the
last six years have shown, can not

do is trying

left

this, in

for good the

take

debt.

ruin

holdinjg'

the sails of those who agitate for

Ore.—James
&

Adams

Building.

Kays

staff of
Laraway

to": the

been' added
M.

Co.,

■

fine

With Harris, Upham

September,

kin-Elmer Corp.
Trade Trends in Retailing—In the November issue of "Ameri¬
can

European currencies
merely their convertibil-

conversion

cannot

Corp., Pall Corp. and Per-

overlook

suspended,, the function of
gold held by the circulation

the

Public Service Co., Rochester Gas & Electric Co.—Alfred L.

Also in the

seems

convertibility into other

was

N. Y.—$3.00 per copy.
Public "Utility Securities—Review with particular
Duke Power Co., Houston Natural Gas, Middle

gold pi ice
"ailing American Dol¬

the

Since

Bethpage,

Old

Road,

that

financial

and

wise

not

have

only.

wars.

the

Internationally a dollar deval¬
uation would play havoc with an
equilibrium which has been pain¬
fully restored after the economic
wake

What he

local

from

nothing much will happen.. And it
is a fair question whether it would

heights, and if

you-

mis¬

was

gold within the United States and

bank

which

Americans

vents

tampering
with 1 the
gold alone to "correct"

ernment and

the

of the American

rather

make
the tail wag the
especially if you want to
tinue expanding credit and

withdrawal of gold from the cen¬
tral banks for internal circulation

Whiting-

Calls—Richard

Farragut

credit

fantastic

pre¬
inevitable substantial in¬

currencies,

that
purchasing

currency,

matter, what

extent;

over

and

according to

convertibility

'Changed

Puts

the

convertibility.

Pa.

Trading

And

way

that the dollar, never

— Quarterly
comparison — Stroud &
Company, Incorporated, 123 South Rroad Street, Philadelphia

Profitable

the

rencies could not very well be expected to be "restored" to such

■

4, N. Y.
•
Philadelphia Bank Stocks

the

cure

its

up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages'and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
and

event.

ity:-| into

York. ;•

National Quotation Bureau, Inc., 46

stands

their

Over-the-Counter Index—Folder showing an

•

1 ;

a new

start

price

and

you

the

Yamaichi Securities

—

risen

the

restored

of the Steel Industry.

survey

.oalances

de¬

But

amount

rush

and, most important, 7 the
price today stands at $35.20 (only
a
few" cents * more
for
small
amounts).
This shows that we
could, if we wknted, repeal the
provision of the law which pre¬

argue

composite

expected
buyers, he

taken

of the dollar has fallen by

doubled.

valuation in

lar."

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

crease

analyses of
Iwaki

brief

and

Japanese Stocks—Current Information

yield

pre¬

Mitsubishi Heavy Industries, Nippon Flour Mills Co.,

New

show

Dbg

gold

one

any

American

50%, the price of gold must

total

West-European

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment

1959

dicted

tion

Japanese Stock Market—Study of changes in postwar years—
In current issue of "Nomura's? Investors Beacon"—Nomura

for

European Press Bureau release
recognized New York currency
expert, while praising the restora¬

Broadway, New York 6, N. Y.
Also
Tax Sale Exchanges and Worry

Jiapan

devaluation
the

about

dicts

Re-

Stocks.

Expenditures

survey

blessed

Life Insurance Stocks.

for

not

hower

'Inc., 1 Wall Street, New York 5, N. Y.
Also available is a
report on National Cash Register, American Motors Corp. and
Income

power

dustry, Large Scale Investment Decisions, Volatile Stocks of

•

will

spring of
Leonard Keesing
1, o bviously hint¬
ing that only.,President Eisen¬

discussions of Savings & Loan In¬

are

since

popular
evening TV

Barney

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

Also in the

dollar

inescapable

in¬

7 At home the advocates of

•

"clairvoyant"

Diversification: Industry's Two-Way Street—Discussion in cur¬
rent issue of "The Exchange"—The Exchange Magazine, 11
Wall

The Tail Wagging the

ru¬
a

Briefs—Bulletin—Smith,

Pharmaceutical

out

that

downed.

Yonge Street, Toronto 1, Ont., Canada.

7 Chemical

ited

can

ternational event of the first mag¬
nitude.

The

being prohib¬
for Americans
only within
United States, any American
legally own these certificates.

the

American gold price as an isolated
matter.
It
must
also
be
ap¬
as

long
Scotia,

of deposit for fine
to 7 facilitate the pur¬

bars

possession of

ques¬

the

mors

Canadian Bond Market

in free gold markets of Switzerland and

praised in its character

can

Not

certificates

gold

justifying present U. S. price.

Canada.

the Bank : of :Nova
Toronto, inaugurated the issuance

repercussions.

Notwithstanding repeated strong
statements
by the Secretary of
the Treasury that a reduction of
the gold parity of the American

comparison of leading banks and trust

Bank Stocks—Quarterly
;

to home

ago,

the

found

the

McDermott &

Stocks—Analysis—Peter P.

Transportation

Co., 42 Broadway, New York 4, N. Y.

nearer

nizing

cure

Canada,
Air

example

prices
"ailing American dollar." Citing changed functions of
gold, maintains that such step cannot be considered without recog¬

PLEASED

FIRMS MENTIONED WILL BE

UNDERSTOOD THAT THE

now

years,

Observer challenges predictions of increase in American gold

TO SEND INTERESTED

In the

ensuipg
almost six
the price has fluctuated
only by very small fractions.

period, which is

Muddle"

IT IS

Thursday, Noverr.ber 5, 1959

per fine ounce,
which is the official gold price in

Is Devaluation Needed?

RECOMMENDATIONS-

equivalent of $35

DEALER-BROKER

AND

1949, the price of gold bars on the

■

(Special to The Financial Chronicle)

international free market in Zur¬

CHICAGO,

ich in Swiss Francs per Kilogram

has become

receded at the end of 1953 to the

Upham_& Co., 135 South La Salle
Street.
7 :

111.—Robert, K. Rand
associated, with Harris,
...

'
*

"7*'

For

•7.;," ' 1 *

;•

•

—

-A~

*'•

financial institutions only—

Joins Marshall Assoc.

(Special- to The Financial Chronicle) •'/ ;
.

Owens

Recent. New

Stock Issues

Yacht Co., Inc.

;

EXTRAORDINARY

Long Mile Rubber

Lease

Plan

Cubic

Corporation '

Florida Palm-Aire

Hugh W. Long & Co., Inc.

Space Components

Exectitone Inc.

Waddell & Reed

Branson
Leeds

International

Heublein, Inc.

Instruments

Tool Research &

and

OFFER

Walston Adds to Staff

2 Sets of

(Special to The Financial Chronicle)

Commercial and Financial Chronicle's
FOR SALE

MCA Inc.

LOUISVILLE, Kv. —Robert M.
Koehler has been added to the
staff

Walston &

Co., Inc., 321

South Fifth Street.

^
/

Eng.

Perfect

Paddington Corporation
Oil

joined the staff of. Marshall
Associates, 75 East. Wacker
Drive.''
* : •

has

Crowley's Milk Co.

Travelwear, Inc.

CHICAGO, IlL-r-Mitcheil A. Crane

;

Photo, Inc.

National

Key Co.

From 1895 to 1939 Inclusive

(Special to The Financial Chronicle)

Approximately 130 Volumes in All

Recovery Corp.

Two With Nelson Burbank
BOSTON, Mass.—George W. Ainscow and David J. McGill have be¬

Bought
Prospectus

Sold

come

Another Set 1908-1928 Inclusive
on

Members New York Security Dealers
74

Association

Trinity Place, New York 6,

HAhover 2-2400

with

Nelson

80 Federal St.

request

Troster,.Siilger & Co.
^

connected

Burbank Company,

N. Y.

Teletype: NY L376; 377; 378

WHICH SET INTERESTS YOU?
Write

Phone

—

REctor 2-9570

Two With Draper,
BOSTON,
Cooke

Edwin L. Beck, c/o

Chronicle, 25 Park P1.,*N. Y. 7

Sears

(Special to The Financial Chronicle)

are

and

now

Sears

members

Mass.

—

William

affiliated

J. Brewster

Harriman

with

Co., 50 pongress
of

the

Draper,

Street,

New\ York

Boston Stock Exchanges.

and

Volume

Number 5896

190

The Commercial and Financial Chronicle

.«

level off

may

Business and the Money

(1897)

the

turn downward

half of

latter

1960.

high

market

level

and

the

afford that

can

With the money policies of the
Federal Reserve authorities. Dur¬

money

sum.

Personal savings of the people
(2) Inflation has been controlled
1959, and prices should not„ available
for
investment
have
upward much in 1960, if the been averaging close to $23 billion
Treasury is able to balance the annually for the last four years.
budget and refinance the U. S. The annual rate of savings has

ing

...

Market in 1960

the

tightmoney

policy in
government'
to 3%, then fell

1952-53, the yield

move

bonds

moved

21/£%

with

the

easy

money

policy during 1954. With the tight
money
policy
prevailing
from
Assuming personal savings of» 1956-57, government securities
moved to 3%%.
near $24 billion for
When
the
Fed¬
1960, it will
,

By R. N. Nolen.' Professor of Money and Banking, University of
Illinois

and next after analyzing the business outlook. Fore¬

1960 followed by

all time high for the economy in

seeing an

demand for and supply of loanable funds

Economist delineates the
for this year

debt from

savings, and not from

creating too much new money, i
(3)
International
competition
has become a major factor both
in our foreign sales and in our
home markets.

been close to

not be

$23.5 billion in 1959.

sufficient to meet the de-:

A \

ing that inflation can price us out Estimated Demand and Supply of
of/ both : markets.
The foreign
^Loanable Funds In 1960 v A
competition Will exert a strong$7 .billion or mote for state
money supply by more than 4%; doubts this will be price infla¬
force .against price uses, and may
and local governments
tionary; and predicts Federal Reserve's gradual easing of - the
force somq, price cutting in those
10
billion for mortgage
money market in the neaMuture. Further, the writer is concerned
commodities- meeting strong for¬
financing
..A
about the inflationary consequences of Treasury financing; notes
eign competition. /« »
A/-- :
3.5 billion
or
more
for ina
(4)
The
fears
of
inflation
caused
.::
/i::.A stallment loans
growing realization that inflation is not a cause of prosperity;
7 v
many people to purchase Stocks
and hopes we will stop raising prices and compete ^
/10
billion or more for corin the last year. As a result, prices
pOrate borrowing A"
The United States economy has currency increased about 3% per of stocks have pushed much above
3
billion or more for inventhe usually accepted relationship
h a d
three
business
recessions 1 year from 1953 to 1956, increased
tory accumulation ■;
since the-end of World War II, slightly in 1957, then with the to earnings and dividends. /The
and has risen to new high im-- easy
money
policy in 1958 in-: yields on many stocks are below- A $33.5 billion (or more) total
that of high-grade bonds, and this
m ediatelv
creased 4%
'
■
to $139 billion.
In
;
If the demand for funds reaches
A' A the first half of 1959 the money, is not likely-to continue.
after the up- (5) Interest rates will be forced $33 billion, the commercial banks
turn. •'/._/ / ,V..'
supply moved, up 4% • over the
will be under pressure to increase
The reces-;/'
June, 1958, figure to $142.6 bil-- upward until savings can come
more nearly into line with the de^ * the
money supply by more than
lion.
sionof
leveling off
Nolens

downward turn in the latter half of the year, Prof.

describes

pressures

commercial

banks to

increase the

eral-

Reserve

market

mand for funds in 1960.

learn¬

are now

;

1948-49-/.

caused

was

prima ril-y
the

dek

1 ie f

r e

from

Prices.

the

war

price inf
less than 1% from mid-

rose

1958 to

consumer

August, 1959, and then de¬
1/10 of 1% in September.

clined

shor tages,

Wholesale prices declined slightly

several

ments
e

in :
seg- *
the

of
o

(chiefly

primarily

y:'-

agri¬

goods)'

and

the

The recession
was halted in approximately five
quarters and the Korean War en¬

cession

inflation

and

moved

1954 and

upward

riod

and

towards

halted

quarters.
fined to

decline

The

history.

our

Wages

•

ber

was

period.

The G. N. P.

the

—

lor

foreign

our

own

but also

markets,

In the

domestic market.

increased
1957 and in the first half

over

1959 imports were 15%

the

than

same

these

Most

manufactured

tured goods.

20%

($3

ished

and

September of this fall

petition.

Steel

imports

increased

from

1.3 million tons to 1.8 million tons

State

state
mand

rate

along with the new

exports

We
still exporting more steel than
import, but we must face the

indicated

fall automo¬

steel

trends.

Money

Supply. The Federal Re¬

maintained
a
tight
'money policy since the fall of
1958. " TotaP demand deposits and
serve

has

General Outlook, 1960

average

all-time high

rate

slower,

growth
;

and

1960, but the

probably, will be

the

business

boom

since

has

April,

(4 times in September);.'The rate
in the last week Of September on
30-to-90-day
4y4 offered.

bills
It

was

seems

bid,

evident that

these bankers expect interest rates
to continue upward.J" / A ■ J
In

September, 1959,'the Federal

Reserve

Banks

moved

count rates from

the

redis¬

3fy% to 4%.

FHA raised the, allowable inter¬

est

rates

insured

mortgages

from 5^4% to 5%% and increased

the limit

total

loans from $29

billion to $37 billion in September,
1959J The FHA now has $5 billion

letters

of*

intent

insure

(FHA insured mortgages had been
discounted

over,

points

below

par).-.,'/

;•

Treasury Short-Term—$4

Billion

i June, 1959—Treasury bills were
3.2%; the 258 day tax anticipation

drew

4.075%

and one-year notes

interest

4.728%

inter¬

est. Since June the 13 weeks bills
have moved

August to
,

4%. From mid-

over

mid-September

Continued

yields

on page

offer to buy, or a solicitation of an offer to buy,
made only by the Prospectus.

($5 par value)

Price $60 per

all-time

first

the
can

billion

half

expect
or

1959.

increase

•

have

rate

running at

close to $37

billion

Harriraan
Ripley & Co.
Incorporated

•

R. W. Pressprich & Co.

Dittmar & Company,

Incorporated

Corporation

DeHaven & Townsend, Crouter
-

1957, $30.2 billion in 1958). A
large
proportion
of
financing
came
from internal sources (re¬
tained

earnings, depreciation, and
amortization allowances), but cor¬

porations
usually
funds externally.
In

1958

the

borrow

some

Hirsch & Co.

......

corporation

ex¬

and $1.3 billion other
The corporations decreased

bonds,

Moroney, Beissner & Co.
Stix & Co.

Curtiss, House & Co.
Wm. P. Harper

much

Miller & George

Davenport & Co.

Paine, Rice & Company

$10

billion in 1960 if business operates

October 29. 1959.

Smith, Moore & Co.
Brooke & Co.

Kenower, MacArthur & Co.

Muir Investment Corp.

Warner, Jennings, Mandel & Longstreth
ex¬

Manley, Bennett & Co.

Woodard-EIwood & Company

C. C. Collings and Company, Inc.

1958.

corporate demand for
ternal financing may reach

Robert Garrett & Sons

Richard W. Clarke Corporation
Field, Richards & Co.

F. J. Winckler Co.

larger external borrowing than in
The

gt'Ji

Beil & Hough, Inc.

& Son & Company

C. S. Brown & Co.

Mackall & Coe

Yarnall, Biddle & Co.

Peters, Writer & Christensen, Inc.

Campbell, McCarty & Co., Inc.

lion in 1958.

with

M. M.Freeman & Co., Inc.

Lawson, Levy, Williams & Stern

Wulff, Hansen & Co.

A. E. Masten & Co.

expenditures

Incorporated

Baumgartner, Downing & Co.

Epj^er, Guerrn & Turner, Inc.

their short-term debts by $6.2 bil¬

The 1959 figures will

Russ & Company

Barret, Fitch, North & Co.

pended $30.2 billion for new plant
and equipment: they issued $3.5
billion in new stocks, $6 billion

Janney, Dulles & Battles, Inc.

Corporation

......

J. J. B. Hilliard & Son

Elworthy & Co.

First California
Company
(Incorporated)

Ferris & Co.

Hooker & Fay

New York Hanseatic

Courts & Co.

Brush, Slocumb & Co. Inc.

Elkins, Morris, Stokes & Co.

■

Chas. W. Scranton & Co.

Reinholdt & Gardner

John W. Clarke & Co.

The Marshall Company

& Bodine

Baker, Simonds & Co., Inc.

Fahey, Clark & Co.

Blunt Ellis & Simmons

Cooley & Company

Bosworth, Sullivan & Company, Inc.

J. R. Willi8ton & Beane

Sutro & Co.

Stroud & Company

William R. Staats & Co.

Swiss American

Dempsey-Tegeler & Co.
The Ohio Company

Lester, Ryons & Co.

Inc.

William Blair & Company

Cruttenden, Podesta & Co.

Boenning & Co.

Clark, Dodge & Co.

Merrill, Turben & Co., Inc.

Tucker, Anthony & R. L. Day

Newhard, Cook & Co.

been

•

funds

expenditures of corpo¬

qualified to act as
which the Prospectus may legally be distributed.

BIyth & Co., Inc.
Francis I. duPont & Co.

(an

the several under¬

Copies of the Prospectus may be obtained from any of
writers only in Slates in which such underwriters are
dealers in securities and in

($47.9 billion in 1956, $39.5 billion

tion

(1) The economy should reach

times

Common Stock

$7 or

some

show close to $35 billion corpora¬

should push in¬
dustrial production to an all-time
high in 1960.
■
momentum

•

Central and South West Corporation

annually

rations

debt.

their

acceptance

350,000 Shares

1PS

governments

local

borrowing

available.

are

banker's

been raised

offering of these shares for sale, or an
any of such shares. The offer inn is

1959, as a result of

high); an
average increase of nearly $3 bil¬
lion
annually.
Installment bor¬
rowing declined in the first quar¬
ter
of
1958
but
moved
up
$2

production downward close to 3%.
A settlement of the steel strike,

that

•

1959

becomes

find

com¬

debt.

mortgage

$15 billion in 1951 to $36.5 billion

dropped almost 50% in 1958.

This is
consumption,
significant when
S.

1959

Installment credit has risen from

increase).

for the last
years.
We can estimate the
and local government de¬
to be close to $8 billion in

three

but

and

been

billion

production and the allied in¬
dustries
has
pushed
industrial

coal

(a 40%

increased

to meet the demand.

bile

1957

This is not

$3 billion will be needed

but some

piling in anticipation of the steel
strike.
Since July, 1959. the de¬
cline in steel, copper, lead, zinc,

only

banks

high interest rates'and lack of
availability of mortgage
funds,

Capital

The Midwest has been vi¬
tally affected by the foreign com¬

years.

show over $10 bil¬

under the

$3.5

the fin¬

nine

year may
increase

lion

•

semi-manufactured

Since

been

savers.

prime rate from .4%%'to 5%; The

terest rates have risen and fallen

The demand in 1960 will probably

goods.

'August,

tire

sales abroad dropped
billion) in 1958.
Two-

by his¬
1951 in¬

low

were

standards.

1951

'has

at a
annually

mortgage credit increased over $6
billion in the first half.
The en¬

1960

billion

over

last

billion

thirds of this drop was in

climbed 20%
April, 1958 to

the

United States exports have been

declining;

output

rate
for

semi-manufac¬

and

rates

1930

money

increasing

been

have

erty

were

torical

last year, and interest rates moved
higher than expected.
Mortgages on residential prop¬

greater
period of 1958.

imports

in 1960

My forecast of the demand for
for 1959 was too moderate

high

all-time

an¬

units

million

1.4

the

years;

the 1 trend

■

warrants

trend of interest rates has

The

funds

1960.

1959 to an index of 155
(1947-49=100). A portion of this
increase
was
induced by stock

Rates Moving Upward

not

interest
The Money Market

competition, has
be¬
come a greater factor in U. S. pol¬
icies and prices.
We are meeting
mere severe competition not only

(goods and services

low. of

same

reached

bonds has

Government

have

(4-io%,)- Personal income of

Industrial

the

Housing

1959

(13% above the 1958 level). Out¬
lays for new construction moved
slightly downward in July arid
August. The decline was primar¬
ily in residential construction.
-

.individuals increased 7%.
from

Septem¬

last half of 1958 imports

produced) increased from 441 bil¬
lion in 1958 to near 484 billion in
1959

moved

Foreign

during the entire,

* Business in 1959

re--

both private and
strong underlying,

■

rate

very

minimizing the recession;

esti¬

1958.

half

nual

the

moving upward

above

Construction.

first

readjustment. The G. N. P.
(the value of all goods and serv¬
ices produced) declined 4% and
personal income declined only 1%.
'Unemployment reached 5.1 mil¬
lion (7.5%, of the labor force) in
April, but employment naoved up¬
ward in the summer of 1958 and
reached an all-time high in 1959.

16%

were

week

tory

was

salaries

and

and in the third week of

The recession was con¬
relatively small part of

Construction,

An¬

reaching $262 billion (an increase
of some
8%).
With the steel
strike there has been a slight de¬
cline in wages and salaries.
Department store sales in 1959
have been running 7% above 1958,

employment, but construction
and the soft goods increased. The
recession was primarily an inven¬

public,

serious infla¬
shortages in

continue to
of credit as
long as inflation threatens.: »;
(6) The U. S. Congress dis¬
played a regrettable lack of un¬ people. We have a high level of
derstanding of. the present money employment and people are spend¬
market and the problems of fiscal ing their incomes.
1
; /
policy and debt management of
The Money Market—Interest
the Treasury. The new ceiling on
likely

check the expansion

the

steadily upward with the increase
in
industrial production in 1959

and

factor in

strike

suit of the strike.

little less than three

economy;

were

500,000

1959,

200,000 persons were
mated to be unemployed as

durable goods
industries declined in production

our

September,

other

by the sharpest decline
most rapid recovery in

the

and

workers

last

From

The 1957-58 recession was char¬

acterized

are

nine

of 1953, rose rapidly in
1955, leveled off in 1956,

1957.

give

There

debt.

and turned downward in the sum¬
mer

tion.

productive facilities, raw material,
or
inventory.: The economy can
expand in 1960 on a sound basis
if we can keep prices stable and
maintain the buying power of the

first

re¬

the

will

au¬

the

and

greater^ewards to

mercial

increase in the total

4%
not

upward for the last

and the

Unem¬

thorities

for

during

high

Reserve

should

been moving

good industries had most
serious unemployment.
Busi¬

quarter

August.

remain

Federal

4%.

ibility to manage the $290 billion

heavy
ness

will
The

1960.

thedemand

that

indicate
funds

factors

Present

given the Treasury sufficient flex-;

starting in 1952 ran its
a little
over
one year.

The extractive industries

em¬

funds.

ployment in August was 3.4 mil¬
lion, or 4.8% of the labor force,
compared to 6.7% in 1958. At the

course

products „and

busi¬ steel and related industries.

The

1951-52

million

67.2

K. M. Nolen

cline in gov¬

boom

farm

been

Employment." The number

de¬

gendered

have

ployed increased steadily in 1959
and reached an all-time high of

ernment" spending.

ness

declines

foods.

cultural prod-,
ucts
and the-.'
soft

The

1959.

for

mand

The

eased

1957

1958, U. S.
government bonds yield was 3%.
The yields in general have been
higher than the 1930 to 1950 pe¬

Doolittle & Co.

Newman and Co.

Stewart, Eubanks, Meyerson & Co.

Arthur L. Wright & Co. Inc.
•'

■

The Commercial and Financial Chronicle

(1898)

orders,

Brighter Outlook Ahead
In the Textile Industry

time

categories

available

not

are

nor

fabrics,

the

present

have they ever been.. In¬

SECURITY SALESMAN'S

dividual segments of the industry
are,

therefore, obliged to operate

without full

information with

re¬

JOHN

to the statistical position of
the types of fabrics they are mak¬
ing.

gard

Inc., Neiv
Bedford, Mass., and Chairman, Northern Textile Association
C

By Seabury Stanton,* President, Berkshire Hathaway

Thursday, November 5, 1959

...

DUTTON

Because of this lack of informa¬

An
an

•ptimistic view of the textile industry's prospects is drawn from
assessment of the encouraging and discouraging factors confront-

demand for textiles in the

ing the industry. A steadily increasing
next five to ten years

is envisaged which is expected to enable the

To avoid output peaks and valleys,,
however, the industry is advised to continue the recent balance

industry to operate profitably.

the majority of
operating largely
hand-to-mouth basis, with

One

year

mills

our
on

very

ago,

were

few orders ahead, and profits

were

either

or very unsat¬
isfactory^
Today, the
industry is
operating full
time, mill in¬
,

ventories

mills.

tee

has absorbed the huge sur¬

appointed/to

represent the
Washington, as
recommended by the Pastore Com¬
States, is making substantial in¬ mittee, is -working, closely with
roads, aided by this same artifi¬ the
Department
of
Commerce,
cially high price placed on our whose Textile and Clothing Divi¬
raw material by the government,
sion Director, Mr. Henry Thurston,
which prevents our cost from at¬
is now with us
to
establish
a
<

Competition

are

from other fibers
here in the .United

those

cotton

the

United

has

States

be accomplished, all in the indus¬
from 32.4 pounds per try may have the fundamental
capita in 1947 to 22.2 pounds per knowledge necessary to balance
orders are
capita in
1958,
approximately production and demand, and to
s ub stantial,
31.5%, and the consumption of all avoid the overproduction which
and prices
fibers
from
441/2 pounds per capita has always resulted in the tre¬
Jhave increased
in 1947 to 33.9 pounds per capita
to a point
mendously costly peaks and val¬
in 1958, a reduction of 23.8%.
Seabury
Stanton
whi ch will
leys which have occurred in the
During this same 1947 to 1958 past.
mean profits
the
population
in
the
for most of the industry's efficient, period,
The
next few years will see
United States has increased ap¬
well-managed mills.
many technological improvements
The reduc¬ in
Many in our industry believe proximately 21.7%.
the productive machinery, of
that we have at last reached a tion in consumption per person, the cotton textile
industry, and
luaiance between supply and de¬ therefore, has more than offset the increases in
production which
the very substantial increase in
mand, and that, from now on, the
will result from increased speeds
tremendous
peaks
and
valleys population.
and efficiencies will keep pace for

which
tions

have

and

dropped

affected

our

will

profits

There

opera¬

not occur

are

certain

indications

Some Lessons in This One
With the usual apologies for using
my

some

time

come

with

the

in¬

that the trend toward the wearing

experiences

own

sizable

and

account.

same

extent

in the past.

properly
made and also check carefully one
mistake that almost upset the
applecart.
:

those

Podunk

estly

don't

cept the

moves

that

0
.

„

Select

„

Proper

Prospects, and

Cultivate

Them

proceeds from the sale
sensationally large.. When I

are

further

ports

made

handicapped by im¬
with cotton costing

better

than has

balance

ever

perity that lies ahead.

six months sent him different

terial,

mostly

about

sales,

inventories,

and

unfilled

ma-

fax-exempt

One

♦An address

by Mr. Stanton before the

Northern Textile Association,

Hampshire.

Portsmouth,

announcement

is neither

1 he

offer to sell nor a solicitation to buy
offering is to be only by the Prospectus.
an

any

oj these securities.

millions

had

moved.

had bought several
tax-exempts from

contacted

another

and

asked for

salesman

took

He wanted

dealer that
did not

price

any

did

nor

was

the

competition had offered

dug

dollar

price.

(When you offer
have your
dollar
price
Don't go groping around
for your basis book if some buyer
says, "How much will they cost

bonds,
ready.

Offering Price $3.50 Per Share

me?"). He said to
have to call

replied, "If

Copies of the Prospectus may be obtained from the undersigned in any State in which the
undersigned may legally offer these shares in compliance with the securities laws of such State.

this

you

the

call

you

kind enough
my trying

you were

think

all

me, "You didn't
long distance." I

after

time to

business

S. B. CANTOR CO.
79 Wall Sired

Newark 2, New

Jersey

New \ork 5. N.

only

was

way

should

you

I could

know

the

maturity

of the other
bonds. And I am going to also tell
you that if I think the other bonds
are
a
better buy after I present
you with the offerings I have here

could

the

over

what

you

buy

just feel the difference
wire.

meant

Of course, this is
to

convey all the
time, but I should have said the

believe

that

I don't

should sell any
security to anyone that is not as
good or better than he can buy
elsewhere.
that

you

This

creates

back

with

and

have customers
Close
I

the

attitude

and

practical

your

value

business

you

idealism

performance you
over

the years,

of Sale

asked him to write down the

issues

as I gave them to him over
the phone and this alert man said,

"Shoot, I already have the pencil
paper.!' I told him amounts,
description, maturity, ratings, interest
dates,
yield
and
dollar
price. We talked for a few more
and

minutes.

questions.

answered a couple of
He said, "I'll take 100,-

000

one

of the

issue and my wife

has another 50,000, give her 50 of
another which he mentioned." We

arranged for delivery at his bank
and that

was

that.

Summary

(1) Pick good prospects.
(2) Send interesting mailings.
(3) Find a common interest.
(4) Have patience.
(5) When a possible order opportunity comes don't waste time;
go after it even though you have
to

use long distance,
(6) Be prepared when you make
your offering,
(7) Never ask a client what a

competitor's price

may

be on an-

other offering unless you preface

question with an explanation
that you don't want his business
if you are not competitive. It was
an insult to this man that I asked
this question without explaining
my honest reason for so doing. He
is no chisler, although there are
many who are.
(8) Have a cooperative office
and do the same for other salesmen, as my good friend at the
home office did for me when he

this prospect for me. And thank
him when you find that he has

and that I

office
an

of-

competitive broker

also

had

Then

the

made

asked

other

him

bonds

helped you—I did.

This week's lesson—We
ways

learn MORE about

can

our

al¬

job.

selected four

bonds to suggest to him.
He re¬
plied, "Go ahead, what are they?"

and

November 5, 1959

YOU

conducted the first interview with

tering from

1180 Raymond Boulevard

WANT

with

\ told him that my
had mentioned that he had

SANDKUHL & COMPANY, INC.

YOU

least I could do was to
on the phone from New

York."

Underwriters

GOOD

PODUNKS

whether

bonds

yield

but

four attractive offerings, figured yields and had my

(Par Value 10c Per Share)

buy

mes¬

good bonds, but

were

see

I've

your

STOCK

THE

determine

buy

distance from New York

RONDOUT CORPORATION
COMMON

the

100,000
tax-exempts of not over a threeyear maturity.
He said he had
been offered 100 bonds by another
-

market

140.000

OFFERED

BUY

office over
wire and they told me that he

had called

of them in the
have any of
them.
The only thing I did not
know before I called him on long

ISSUE

BONDS

iast first and the first last.

that

said

I
NEW

THE

from

sage.

This

before me,
I want
them and not mine."

whence he

hon-

market but

day I telephoned him and
we
had a telephone conversation
about
his
former
home,
some
friends we knew there, and he
politely told me that he gave all
his business to a firm in the city

our

New

this

NOT

bonds.

York

occurred before.

Accurate figures on

production,

demand

WERE

are

MEAN THIS. The

pros¬

with

attractive

saw

mailing list and for about

our

any

to know is this:

you

was

our
daily paper, I knew that he
had moved to our town. I put him
on

want

are

in the society column of

name

1962.

where

picked four issues that I believe

unusual, and

name was

the

his

if they
I used to live in this other '"BUY"

place. His

are> and j believe
on
the kasis 0f their rating and
quality they are excellent bonds. What

This part of the story
OK.
Several years

I live.

know

them

of the sale
ago I rer
membered
that a
very
wealthy
man had sold a
large tract of land
in a city 1,000 miles from where
is

I, of course,

that

you don't do business
that way. I did not have that in
mind at all. I only wanted to tell
you
that we don't have any of

were

else's price.

someone

know

in foreign countries at low wages.
In the case of cotton goods, we

thought I had lost
but I replied, "I appreciate
that you don't want to try to cut

ac-

can

creased demand resulting from the
them. I mentioned that there was
the very minimum amount of
added population.
a
tax advantage in buying bonds
clothing
possible
may,
perhaps^
be
support of this belief, it is
The amount of money required
of cities and counties of the State
on the verge of reversal, and that
proper to give full weight to the
to build, equip and provide suf¬
where he now lives, due to an
substantial reduction in the num¬ a tendency to "dress up" is grad¬
ficient working capital to estab¬
exemption of 20 basic points in
ber of spindles and looms in place, ually making itself evident and
lish a new cotton textile mill to¬
his favor because interest on local
and to count heavily on the an¬ may well help our over-all situa¬
day is so great that the return bonds was
tion by increasing per capita con¬
exempt from the State's
ticipated increase in population, in
under
present
or
immediately intangible
property tax. He said
the teen-age brackets and above, sumption over the next few years.
foreseeable conditions would not
he
might
consider
some
local
which will take place during the
Examples
of
this
trend
are warrant the investment.
It is un¬
bonds
someday and^we left, it
1960s and which will provide a shown in
the increased
use
of
likely, therefore, that new plants there.
far greater potential market for petticoats to give a bouffant effect
will be built to force additional
our
products than any that has to certain types of dresses, and production on an
already over¬
Keep After Good Prospects
the increasing use of vests with
previously existed.
crowded market.
I continued to send him offerThere are a number of other the newer styled men's suits.
The companies still remaining
ings and I telephoned him several
On balance,
factors, however, which have
it would appear in the industry, whose manage¬ times when
attractive
issues
handicapped the industry in the that the demand for textiles dur¬ ment has the
courage and fore¬ showed. He became a little more
past, and will continue to create ing the next five to ten years will
sight to take full advantage of all friendly but he did not give me
serious difficulties for some time be a steadily increasing
one, and modern
developments
in
ma¬
any of his business. Despite this, I
to come.
that the industry should be able
chinery and operating methods, kept him on the mailing list.
For instance, no solution has yet to operate profitably.
To avoid will have the opportunity to make
been found for the continually in¬ the peaks and valleys of the pa£t;- substantial
Watch This One
profits and to lead the
creasing imports of textiles made however, production must be kept industry into the new era of
Last week when I was in New
to the

Right there I

him,

exam-

pie, etc., I would like to trace the
history of the opening of a new

textile industry in

true economic balance method of accurately reporting
of our competitors.
these vital statistics through the
addition, the consumption of Bureau of the Census. If this can

taining
with

comparatively
low,
unfilled

mills, and buying
gradually the con¬

until

ceases

sumer

pluses that have been accumulated
25% less than the price fixed by, and another shortage develops. >
our
government
for
American
The Textile Advisory Commit¬

and materials,

non-existent

back to the grey

and demand.

achieved between supply

tion, the tendency is for mills to
run
six days a week during pe¬
riods of demand, with the result
that inventories are piled up all
the way from the retail outlets

classic
on
were

Now With

Reynolds

mistake

RALEIGH, N. C.—Bryan G. Wilwhat basis liams, Jr. is now with Reynolds
offered to & Co., Hood Bank Building.
He

him. "Oh, no, you don't," said he, was formerly with
"I don't do business that way." Pierce, Fenner &

Merrill Lynch,
Smith Inc.

Volume

190

Number 5096

The Commercial and Financial

Chronicle

(1899)

Selection ofGommon Stocks
;

T-n
ill

at.

its field,

•

'TVvrl

TT7 Ci

lUUcAV

that

one

strong enough

yields,

Wayne

National

Bank

and

Mr. Bennett says emphasis

Trust

Continental

Illinois

the

Company, Chicago% Illinois

ine

which

specify how to select particular companies within
1946,

when
had

trying to obtain
return, as the
yields on
bonds

Looks

real prob-

adequate

brief

in
of

shown

the

tabulation,
be of in¬

terest.

Government

Bonds

were

wa/ne

and

comparison it is apthere is not much differ
stock yields

common

wa^

the low yield available on
common stocks today should be a

13.64

•

True

some

field

the

light

manage-

are

more '

If this is going

years.

then

about

business

Also

become

recent

com-

years,

organized labor become'

seen

stronger and enough so to secure
frequent wage increases substan-

tially in

excess of the increase id
productivity. Doesn't this compel

should invest in bonds or com-

alert managements to purchase
S Common Stocks in Today's and install the most /efficient
Market "■ T am delighted with my
equipment to give them quickly
assignment-' as I sense there is the
information
they
need
so
now' a greater division of opinion badly and1 labor-saving machinery
It

stocks

whether

is "The Selection

stocks

common

attractive at this time with bond
vields

even

merits'

those
T

from

obtainable
yuuui.cui.v,

common
—r

trust investment.
Let

trust invest
""7 -"
imvest

the

,J/

gome

stocks

mon

today

stocks,
count

influence

are some

considered
consiatitu

^.be

reaj

will

all

know

that

Although

many

individ-

uals have made a fortune in con-

centrating
or

one

assume

their
most

investments
several

stocks,

in
i

that all trustees who take

responsibility seriously believe in diversification. That poltheir

been followed for years
by most institutional investors.
The question of diversification is
icy

has

largely one of degree. Diversriication is a means of spreading the
risk, and this means doing so not
among a number of com-

only

paries

but

among

number

industries.
^

(2) What Industries? Obviously,
if

going to dive**sifv among
industries, we want to invest in
we are

(8)

Other

there

factors.

still

are

labor

other

relations,

brought

population

part of sales

and

^onS period

these

profits,

should

between the initial experiment
an^ the introduction of the product in the market place. Not
onty

much

(4)

not

company

the

rule

wh?ch
which

costs?

shorten

The

the

time

Selection

faptors

analvsis
•

todav

that

lareelv

that

price-earnings ratios

,,om„

t>£>
d

company.

Certainly we examine 4he record
of tha company. Have its earnings

In doTns
number

Drob,lble

so sufifies

ffro^h lnoears
in
b,]Vin/Stocks

where
Now

3.57

3.13
4.01

5.28

4,87

Industrials

23.26

17.4

Rails

12.60

9.2

Public Utilities—,.

14.54

17.6

^Moody's.

^Standard & Poor's Secon#

*An
the

address

Trust

Bankers
Oct.

16,

'Western

33rd

ference,

Mr. Bennett befor*
Regional Trust Con¬

Division

^v ieiSIrks

^bout

position

the

its

amount

for

Keefe in New York

Office of Tucker,

Anthony Co.

1The

stock<?

mav

future

s/°cks

reinvest-

business?

carry

b.e

™ay

such

than

discounting

the

discounting
an

the

holder

probably
is
better
off
regardless
of
his
tax
situation

charge

extent

average

they
risk. If

(6)' What does it earn on its their earnings do not continue to
capitalization or net worth? If a grow at the rate the market ascompany darns pretax 15%, 20%, sumes,
then present prices are
or more alld reinvests retained terrifically inflated.
If they
do
earnings at that rate, the stock- continue to grow at the assumed
rate, then this growth will justify
present prices and higher prices

This is neither

offer

sell

The

the

nor a

meet

stockholder.

parj.

Hartford

transferred
same

date

office

will

New

York

and

will

firm's municipal bond
in that office.

fixed
real

buy

any

of these securities.

GERTSCH

Capital Stock
No Par Value

the abil-

charges

If debt is too

the

large

this,

maintained

will

only the leader in

each

states

which

the

may

qualified to act

Prospectus

may

Schwabacher & Co.

consider

industry,

100

October 30,1959

dealer

legally be distributed.

high

■

be obtained from the Underwriter only

Underwriter is

in securities and in which the

financing. One of the benefits of
a strong capitalization may be less
dilution of the eauity.
it isn't necessary to

•

Copies of the Prospectus

in a
flexible position to do future
company

.„

Price $14.00 Per Share

could
to

PRODUCTS, INC.

several

concern

capitalization,

leyg^ £be

offer

ii-

course, is more important if the
business is
highly cyclical and
earnings fluctuate widely.
Also,
j£ credit

overall

Harry H. Gardiner, formerly of
the

107,143 Shares

(ure>
Debt should be moderate
jn reiat|0n to total
capitalization,
jn
case
0f a severe
decline in

bec01Tie

solicitation of

firm's

municipal bond operations.

offer is made only by the Prospectus.

companies in each industry which
we
bejieve have a favorable fu-

earnings, coverage of

American

What factors

canitalization

the

1959.

the-ma^

»xhe Selection

Afte caPuaiizauon an/l
and

Association, San Francisco, Calif.*

come

4,91

3.89

Electric Utilities
Rails

Selection Factors
Now

2.73
,

i
witb
f am
been improving, static, or declinTucker, Anthony &
R. L. Day,
hot confining
to
mg? - Has it maintained or immembers Of the New York and
f
companies where the vields
proved its. profit margin, or has
Boston Stock
1 %
Exchanges, an¬
this been declining? What about are about
ine handful
Pandtul which
wmcil nounces that effective Nov.
comes
1,
readily to mind, in ithis
its dividend record and policy?
Harry
V.
Keefe, Jr. will be located
Has it been a stable one or erratic, group would provide a subject,
"What Price Growth?" At 40 or in
the ■' New
York
office,
120
and[has
these
most of its earnings or retained a
Broadway, and will be the partner

next question is:
M

probiem>

4.57
4.77

2.51

2.58

divi-

S'anTvilld
'

tbp

4.08

Quarter 1946.

®Ttois°probtem■
e^*eflS"[1ri

tive list ot stocks lor reference
which satisfy you as to
out tn
to Purposes
t
f fh

2.08

Price-Earnings Ratiost-

company with a low labor factor;
(5) The record of the

Investment

4.35

' "

/___

Common Stocks$
425 Industrials

1,46

AAA

high labor

costs than

Term

„

rising labor

Long

u| t-"e

JL1®

company

has to pay

Term

Now

-4 \

Corporate Bondsy"'.

Market,
it may be
advantageous to have an indi-

out

necessary

com-

labor

Short

order

labor in wages and salaries and
other benefits' 40 to 50 cents of
each dollar of revenue may find
J* more difficult to live with the
trend of

our

others

make

Conclusion

the

are

just because
it has
w
comuanv

and

given situation, we

ready-to

May, '46

U. S. Governments

selection.

may

What

company,

....

expense involved

this development, but
Pany

factors

applicable to

elapse

may

seven

yields.' Today

reversed.

course,,

factors, such
foreign com-

this

Market,?*
on growth
earnings im¬
provement will justify present or
even high prices in
a reasonable
period of time.
>
■

and many others too numerous to
mention here. But
having studied

market in the last five
years or 10.
years now make up a very sub-

affect

bond

the emphasis should be
in companies where

dividend

situation

yield, we should invest in
bonds. In "The Selection of Com¬
mon
Stocks in Today's

record

excess

the

want

the yield reasonable, and
what are the prospects for a
dividend increase?

research/

companies

products

consider?

nancial

Diversification.

steel?

and

the

secure,

tions.

(1)

com-

which

not intended

in Today»s Market."

selec-

our

number

new

un¬

less than 1.25%, then the
remaining 24 produce an average
at'
yield of about 2.75%.

years

dividend,

factors, justified by the
the- company? Is the

0;f comil-.on stocks for Investment

of the factors to ue

making
&

inciude

are

What stocks?

selections.

our

time,

havg selected the

our

Stock

approach is much the

which already holds commons, t_

Here

^at

Nqw

industries,

it may be a new acconsisting only of cash.
I

present holdings, of course

where

allowing for

yield

well planned research determine'
petition, participation in foreign
the future of a company.
We markets, how will the
growth in
know

not

to be nR-inclusive. You will think

although if it is an accoun

same,

of.

prices

of others

believe the

,out

category,

list of 30 stocks gives an aver¬
yield of about 2.50% at cur¬

rent

price high
on a historical basis, is the
priceearnings ratio high, and are these

is,/
product. development?
Improvement of products and product de-;
velopment is extremely important
to the success of a company. Newi
come

high.

usual extra dividends at the
yearend. If we eliminate six

estimated,

earnings,

dividend yield?

company, and what is it doing in
research and engineering—that

products

corn-

future

Research and Engineering,
What has been the record of the

reasonable

What

wouid

^hese comments

gardless of
other
trust, pension fund, or some other
type of account is htvolved
The
account may have soi e

com-

v«U

ment in

industry,
aluminum,
and
glass, and rubber

paper,

given

and

future

this

age

compounded
anin 12 years, and in

at 5%,

in .the

include

handful ol
stocks with others which
may be
classified in the growth
a

income'

(7) What-is the price : of the : •'■My point is that common stocks
were
attractive
for
income
in
stocky
price
range,
and
price- '
earnings ratio in past years and many years after the war when
dividend yields were
substantially
presently, and also on

in the

drug

ment committeei to

.itself

years

4%.

trends

benefit

course,

PHm<lSx{,n c? aiP

the decision has

re-,

work

whicn,

,•

assume

reached

been
uccii

main competitive? Social
Cor many years have been
direction of / the shorter
week and more leisure
.

for

suitable

considered,

stocks

Governattractive than yields
S.

order to control costs and

are

improving

regular

interest

nually at 6%

!* developed.

and

subject is not whether

growth

supplying

this

happen,

piex.

mohths'^ime.:

the-

Money will approximately

the next 10

have

mon

pounding

company,, return.
idea as to double

incur further heavy Common
}oss«s beiore ail adequate market
Today

the

some

management

argue

medium and large sized companies
grow still larger, and government'

1946, was 18.09; and
declined

future

will

one

utilities

power.

22,1946, the low for the year,
decline cf 24.5% in about six

But

the field of elecIn recent years, we have
seen governments grow large, and

Nov.

ahead

tronics?

happened to common stock prices
1946. The Standard &
Poor's 425 Industrial Stock Index
market

any

the

What

after May,

May 23,

growth

both
serv-

also grow.

warning to us, as we know what

and1 some investors believe that
for... adequate funds spent
properly in

outlook

the electricalequipment-manufacturing
companies, if well managed, should

sibly

•'

powerful

stockholder-conscious than others;
but the industry is going to grow
probably output will double in

greater to

bonds
true in May, 1946. Pos-

available

return

to-

pany.

stantial

ments

this

have

and

public

corporate at 2.50% to 2.75%.

day, but there is a much

the

we can exam-

not. enthusiastic

are

near-term

building and oil industries, but

about

trustees in 1946. A 12-year
maturity of U. S. Governments at
2V2% seemed preferable to a long-

carent

the

Hardly

many

From

examples, all

many of us will argue that
of them perform an essential

R. Bennett

ahead.

in¬

vestment

them, if not in the. next few
months, certainly in the years

Series G 2V2%
favorite

and

ice

products

important service, but is
industry growing? Probably

about

accompanying

the

essential and growing,

you

in the

are

agree that the railroads per-

the

that

sense

importance.

form

com¬

appear

industry which is fundamental

in the

parison

Remember that in the investment
of money, few. influences, are as

often can obtain informed opinion as to the
adequacy

services

inad¬

directly,,

promising future. When I
say promising futurq, I mean long
term, not short term; and I mean
an

Were

equate.

than

gives

maintaining, losing,

industry.

those industries which
have

and

stocks
both

subject

Man

lem

ence

Certainly
record

questions

the company's
position in its field.
Through contacts directly or in-

Investments,"

term

difficult

one

prices, For yields, he advises bonds. The banker lists two general
making selections in common stocks and then proceeds

"The Prudent

may

the

This is

whether the management has been

May,

was

most

evaluate,

by investment trust committees in select¬

factors in

(2) Management.

ing common stocks in today's market should be on growth com¬
panies where earnings improvement will justify present or higher

be,

may

■

Bennett,* Vice-President,

other; periods

when investor confidence
is

stockholder

A/I O V»1 mi- 0 5eep. lts, P19^ and equipment-better off if the corporation reinIVldl KC I mode^zed so that it can remain vests at even a lower rate pretax.
competitive.

the

Montgomery Street, San Francis6o

also

the

manage

the

department

The Commercial and Financial Chronicle
;

What's Wrong Today With
Collective Bargaining?

strength

been

process.

Ity Hon. j.
Labor

Secretary

ajid use subpoenaed witnesses; make
clearly stated issues a part of the public record; and, as a result,
help move the parties toward a settlement. The Secretary condemns
compulsory arbitration, points out the Taft-Hartley 80-day injunction
is useless; and would not allow his proposed board make recom¬
mendations unless both sides agreed to such a procedure.
Mr,
Mitchell would like labor-management to adopt a principle of sharing
.productivity increases fairly.
in

pos¬

for

demand

their
as

dissent
compulsion itself.
my

strongest

arbitration

Voluntary
other

matter.

an¬

frequently

by both sides in a dispute
when they see that they cannot
agree.
It has a firm and^a logical
place in our system of voluntary
decision.

•

runs

There

arbitration have

this

Mitchell

James

steel industry.

not

warfare

issues, we
Since

warfare.

industrial

the

hurts

the

confront

worker.

private but

therefore a
It hurts the nation.
matter
for
public
intervention.
And it poses for us, members Further,
the government should
of a free society, a serious dilem¬ intervene not only to put an end
ma.

bargaining,

of collective

that
free

people,

labor

management to

and

their

termine

the

brought

that is
the free right

nation to

the

of crisis.

One

our

institutions
progress

most

but in

not

must

wrong

ask

ourselves:

with collective bargain¬

peace

right?
''; Many people ordinarily patient
with the often slow course of free

its

make it

process

and

have

become

alarmed when

impatient

they

see

solutioni; of
billy,
keeping

the

the
than

its presence

not

believe

that

govern¬

ought to have such

club,

fix

power

what
not

are

assume

prices, and
is in the

ment

once the govern¬
business of setting

prices in major indus¬
tries, it is not so large a step to
government
domination
of
an
wages and

entire economy.
communist

whom freedom
a

first order

governments,

is dangerous, it

of business

to force

compulsion in their economic sys¬
tems.

There

are

other effects of com¬

pulsory arbitration.
important item of experi¬
ence:
Compulsory arbitration, in¬
tended to stop strikes, does not
stop strikes. It often causes them.
One

countries that have tried the

government dictation of
settlements leaves behind it a rash
of hit-and-run strikes, work stop¬
pages,
slowdowns and the like.
system,

There is

one

reason

for this that

believe

that

tests

society in which governments are
elected, and in which government
officials

trusted with

of will

and

power

economic decision.

public

announcement

is neither

stay in power at the
sufferance of the people and the

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

any

of these securities.

The

(A Philippine Corporation)
Par

value,

one centavo

(Equivalent Par Value $0,005

Seeks

find

the

units

200

one

centavo

the

value shares, aggregate

unit of

two

pesos

par

value

per

Philippine Currency.

settlement

seek

What

this

service

the

tools

tion

does

not

the

that

steel

not

have

some

legal

there

that

must

lic

the

putes

Taft-Hart¬

process.

per

unit

those

recommendations

parties, who
to

boards
to

the

of course, free
reject them.

were,

Failure

Fact-Finding

Boards
Yet the whole

course

of indus¬

trial disputes in the steel

industry,
and
the
history of fact-finding
boards convened to settle disputes
in the steel industry, leads me to
such

that

boards

cannot

be relied upon

to bring settlement
disputes like the present one.

1946

Truman

President

con¬

fact-finding board in the
steel dispute of that year but it
played no real part in the settle¬
ment. Settlement came only when
the government's wage and price
program
was
revised to permit
an
increase in the price of steel.
a

1949 there

The

and

was

its

rejected

were

final

another steel

recommendations
by

the companies.

settlement

recommendations

after

the

strike

had

reflected

but

been

only

called

continued for another month.

1952

there

was

Presiden¬

tial

fact-finding board but the dis¬
pute was referred to the thenexisting Wage Stabilization Board,
its

recommendations

ment

only after government
stabilization authorities approved
both a wage and a price increase.
what

needed, based
experience, is to add another
legal step to the mediation

50 Beaver

Street, New York 1, New York

the

Now

ently

Board

task

and

pres¬

has

the

In other

this strike
until

the

safety

are

been

not

ma¬

being clarified

national

health

and

threatened.
other value I would

one

both

that

know

legal

Taft-Hartley

Act
gun of an injunc¬
words, the issues in

are

There is

list.

of the

part

under the

parties in

they

can

a dispute
legally be

forced to state their issues in pub¬
lic and as part of a public record,

they

might

state

them

inclined

clearly

during

the

that

of negotiations—and when
is done you have substance

and

material

course

which

base

mediation.
believe

that

this

suggestion,

adding this statutory step to the
mediation

would

process,

chart

out

course

the

needed

help

middle

seek.

There is little doubt in my mind
that

pressures

come

from

armed

that
are

public.

once

settle

would

informed and fully

I have also

thought

the issues in any dispute

known

publicly, then the

sibilities for settlement

increased.

are

pos¬

greatly

Uselessness
Another

80-Day

thing

The

record

particular

ing,

The

record

are

this:

The function of this Board would

public

this

fairly

intensifying bargain¬

parties

prior

clarify issues in a public
hearing, .to make those clearly

success

provision

one.

the

be to give the

Injunction

should do is

give some serious study to the
80-day injunction provision of the
Taft-Hartley Act.

relax.

part of a
-time in the

this

meeting

Taft-Hartley

process

Washington

which

any.

of
be

attempting exactly what I have
in mind, but it is undertaking this

cases,

issues"

kind

■

four

stated

the

would

mediation
able

government authority, based on
law, to convene a Board as a regu¬
part of the mediation process.

record, at

The

lar

reads

mind

the

Instead of

Wants Fact-Finding Mediation

John G. Cravin & Co.

issues.

have

would.be

shoddy

process.

That step would

One

were

came

think

what

law.

tion.

Underwriter

the

chinery

Copies of the Prospectus may be obtained in any stale
only from the underwriter and such members of its selling
group as may lawfully offer these securities in such state.

part

and
;

directed

and

make

only

tory inability — to f o r c e both
parties to a clear-cut, public state¬

conveVfed fact¬
finding boards in industrial dis-~
to

the

and Conciliation Service—a statu¬

past

what

room

problems in the present steel
dispute, to my mind, has been the
inability of the Federal Mediation

Now it is true that the President

mediation

real

Board

has

I pro¬

service to the

people

advertisements.

ment

ley injunctive

Board such

knows

the

rejected by the companies. Settle¬

the

different matter.

would render

government to aid the settlement

disputes short of

be¬

issues are, but the American pub¬

available to the

means

dispute have their big propaganda
guns booming.
They may know

statutory authority to act in
an
industrial dispute short of the
injunctive process, and since this
rests
upon clear
dangers to the
national
health
and
safety,
it
means
that
government
cannot
bring its powers to bear until a
dispute has run a long course and
involved many millions of people
and caused great losses.
believe

part

however,

by helping to
dispel the clouds of confusion
that gather when both sides in a

any

answer

American

dispute

now

room

particular posi¬
subject to negotiation or

Finally,

has shown that.
Government does

were

record,

comes

pos¬

pose

think

public

that

mediation

not

his

public

sess.

the

were

When

proper

now

issues

change, he would, reply "yes" on
Monday and "maybe" on Tuesday.

provide

with the

government

tools,

asked

government.

What must be done is to

the

whether

our

preserves

of both posi¬

aware

negotiation.
For ex¬
ample, if one of the parties were

compulsion
free institu¬
tions and yet averts threats to the
public welfare.
The
logical agent to perform
that

subject

and

license

public,

bargaining could go on—but
the American

record

unbridled freedom

must find is some way

between

clear

the

Thirdly, there would be

the other

issues

people fully

that leads to crisis.

and

PRICE

tions.

dicta¬

government

hand and

one

the

from

resulted

it would go on with

and

out

middle way between

some

danger of

and

par

must

safety..
that
no

presuming

Secondly,

Middle Way

the

danger of

tion

those

Offered

issues well in advance of dangers

statement

What

are

First, it would give to govern¬
an instrument for clarifying

do some
take thehi-in
;:-

A:'

such

mediation

to the national health

unless

quickly apparent.

can

will

power

values

step

and

things,, and

the

such power.

the

ment

management

that

specifically requested

assume

bargaining.
right then, what is?
I think that government can do
some
things; I think that labor

Oflicial Exchange Rale)

All

board,

(Philippine currency)

added

collective

vened

Republic Resources and Development Corporation

issues

recommendations

think

the

readily understand.

can

make

not

dilemma

the

answer

only

arbitration

Cohipulsory

record

It would not have the

the

settled

have

call hearings, to sub¬
to evoke testimony, to cre¬

poena,

ate

would

Board

both parties

250,000,000 Shares

was

believe

This

Such

wages

that

the arbitra¬

tion decision

hitting people with it.
I

cannot

government

official

the compulsory
it could be, it is almost
be, a
political decision

by the OPA.

is of paramount importance to any

matter how cautious it may be

that

*•

but

used

use.

ment

without

fix wages without
eventually assuming the power to

pow¬

the

policeman's

ing? What can labor and manage¬
and the government do to

ment

This

What

need

themselves

ers

ahd the

settlement

rarely.

problem.
We

will be sufficient in most cases to

in induce

national

grave

whole. Government can
only if granted the powers

fair

fair?

omy as a

do this

free

trusted

resulted

has

they

compulsory
arbitration,
and
brink yet, if government is granted
those powers,
the threat alone

course,

own

settlement

the

interest and good for the econ¬

de¬
has

but also to dictate the

in accordance with the nation¬

are

process

with

synonymous

war

terms

a process

have taken pride in as a

the

For it seems that the process

and

affair

public

not

are

eventually
determining
prices are fair and what

the

dispute refuse
have

When parties to a

the

hurts

It is

this:

harmful strike.
steel

leading to this conclusion..
-

question about
it:

of compulsory
course of logic

proponents

The

growth.

Arbitration

Compulsory

Opposes

economic

what

and

ward settlement.

1952
steel
after a
price increase had been authorized

continuous

decision

example,

strike

the

basic 'to

most

industry

dispute
such clarification
help move the parties to¬

would

counter to that

system and for .this reason it has
the course is toward crisis. These been
rejected by most democratic
people
are
asking—at
what
point
societies.
United States economy has been
and in what manner must freedom
As
gathering dust for a longer period
soon
as
government fixes
than
ever
before, and
at a be taken away from labor and wages it is logical that it must go
management before it endangers on to determine
time when
conditions
of
all of the people?
we
are
chal¬
work, fix hours, hear grievancesThe easy solution is to deprive arid
lenged
as
a
possibly
eventually dictate,
them of decision, whether sooner details of production.
people,
both
or
later in the course of negotia¬
at
home
and
And does anyone think for a
tions — in a word, compulsory
abroad,
with
moment that the government can'
the
need
for
arbitration.
determine what wages
are
fair

Thursday, November 5, 1959

...

part

under

rather than

order.

Compulsion

•

system,
apt

are

government

down

prices

that

groups

people.

hands

the

used

the

For

must

Compulsory arbitration is not a
good thing for the United States.

hearings

public

mere

government

lead

But

another legal step to the mediation
process, based on. law and not on
the inherent powers of the
President. Mr. Mitchell says such flexible machinery could: clarify

issues

the

the
of compulsory arbitration
by

powers

interest

When
that

also

and not as infrequently
might be imagined.

"outside-the-bargaining-table" fact-

proposes

bargaining

use,

finding approach be added as

P^Mitclicll*, Secretary of Labor, Washington, D. C.

always have

the

I think

session

and

are

part

will

(1900)

were

settled

this

inclined
in

the

month,

was

invoked,

without injunc¬

tions being issued; five were set¬
tled during the 80-day period; two
were

course -was

settled

after

dissolved; four

the injunction
were

followed

Volume IPG

Number 5896

The Commercial and Financial Chronicle

(1901)
by new strikes at the
days, v
The

age labor and

•

been

which a secret
has been held.
think

this

ballot

the

80-day injunction

not

proved

success.

election

shows

I spoke"; to-theindustry
in
New*
York City and I suggested to them

has

that

reliable

instrument in settling strikes.
..But there must also be, if col¬
lective bargaining is to succeed in

America,

a greater effort

ago,

the

construction

happy to

by labor

the

bargaining, contract
signing, is, after "all, only a smair ing
slice in

the

wide

circle

labor-

It is what

In this

both

tions between foremen and work¬

between

company

dustry,

were

what
it

The

business

running

Presidential nomination is hazardand

ous

even

the line—that determines whether
or
not the activities in the slice

Congress

of that circle

sions, it

was

see

You

can't

to succeed.

have

successful

bargaining without

changes

their

these

discus¬

men

themselves to

cli¬
col¬

In the

same

Carlisle

Any

Governor

start is for

ment

labor

stop

the

and

calling

that

suggest

place

manage¬

each

other

names.

paraphrase a once popular
The class war is over but

song:

the

rhetoric-lingers on. And out¬
side of providing employment for
writers and public relations men
I

can't

where

see

contributes

anything but confusion to
where
I

confusion

believe

that

may

Labor
United

ing

set

bar¬

have

start

their

the

talk-

own,

from the pressure*

deadline

can't

set

change

re-

and the

growth.

deadline

but

—

you

You

economic

and

can

you

must talk about them.

San

area

deadly.

if collective

States

deadlines of bargaining. You can't

In
an

management

together,

moved

results.

some

and

AFL-CIO
up

attitude

management

toward

relations

labor-

this

gaining is to work, then labor and
management
must
discuss, fre¬
quently and frankly and outside

country,

the

ment, and it is this:

lems

One of the penalties of freedom
is that at times it is difficult to

bargaining table, the prob¬
and policies and principles
that govern their industry and its
position in the economy, as well
their

own

toward

the

role

and

process

bargaining
of

govern¬

worthy of it.

situations within that

industry.

Pennsylvania Newspaper Publishers Asso
ciaticn, Pittsburgh, Pa., Oct. 17, 1959.

Productivity Fair Share Principle
A

Why

couldn't

agement,

labor

and

example,

for

outside

the bargaining
principle that owners, work¬

the

and

ers

consumers

all entitled

of increasing

fair share

are

pro¬

Such

agreement, it seems to

me, would go a long way toward
setting the right tone for fruitful
bargaining..
*

For

Dempsey-Tegeler Branch
Opened in San Francisco

labor

and

management

FRANCISCO, Calif.—Demp¬
sey-Tegeler & Company has
office

the

John

Hancock

Building, 255 California
Street, John C. Hecht, Jr., and
Jack Lackey, Jr., will be co-man¬
Founded

agers.

1933,

the

company

St.

Louis

member

of the New York Stock

Exchange,
this, would agree
Pacific
Coast
Stock
Exchange,
and employees
Midwest
Stock
Exchange,
Salt
and the public all have a right to
Lake City Exchange and an Asso¬
a
fair
share,
then the
climate
ciate
member
of
the American
would be right for their sitting
Stock Exchange.
down to work out a formula to
Mr. Lackey was formerly with
put this principle into practice in
First California Company.
their own particular business or
would
that

agree

stockholders

Mr.

industry.
I

envision

can

ing conversation

such

continu¬

over many, many

things: The impact of research and
development on employment, for
instance.

Practices

be detrimental to labor

that
or

may

term, long-range conversation .be¬
tween
labor
and
management
be

the

over

going on all the
impact of foreign

time

value

conversation

shared
the

problems,

solution of

desire

and brings to
problems a

those

understand

them

BRYN

and

other

leading exchanges,

not

type
have

been,going on,in most indus¬
Collective

fers

bargaining suf¬

result.

We have been

trying to *encour-

that

And

they seemed
against

bit

more/

nuclear

the

York.

New

candidate

York

to it.

of defense mobilization

Defense mobilization

that ill

the

fense

event

was

the man he
knows nothing about New
staff,

took
York

State politics, or little or nothing,
but he does know national politics,
Governor

seems

develop

issue

tryagainst

Nixon.

needs

overcome

the

Vice-

President's

head

to be

reason

some

issue

replace Nixon

start.

There has

why he should

the nominee.

is sort of like 1952 when Bob Taft
was

off to

head start for the Re¬

our

de¬

associated

763

West

The

firm

association

they

;

Renshaw.

also

announced

them

legislation

pass

saying

now

what business will be
and

BUFFALO

•

Simon

vic6-President

whom

and

After all

over

where.

But

move

Joins Bacon,

will

Hugh

in this

if you pass

not be

set

To
war

means

•

a blueprint of what
will discourage the

bloodthirsty.
The indications

are

that Ropke-

ahead

°.ne of

Joins Bacon

any war.

incurred Eisenhower's

dis-

Eisenhower's greatest ambi-

Whipple

(Special to The Financial Chronicle)

CHICAGO, 111.—Jay N. Whipple,
Jr. has joined the staff of Bacon,
Whipple & Co., 135 South La Salle

Street, members of the New York
and Midwest Stodk

Joins W.

Exchanges
utton

(Special to The Financial Chronicle)

DAYTON, Ohio—Hubert A. Esta-

Hons. It seems to be the first oi: brook, Jr. has become affiliated
announced a few days ago that he the many agreements he hopes to with W. E. Hutton & Co., 42 North
did not favor the cessation
of achieve with Khrushchev.
Main Street.
He was
formerly
nuclear tests.
He is preparing* to
equip New York State with bomb

This

announcement

offer

is under

buy

any

Ike's displeasure is reported to
so great that there are some

circumstances to be construed

with Merrill Lynch, Pierce, Fenner & Smith Inc.

offer to sell

or as a

solicitation

of these securities. The offering is made only by the Prospectus.

NEW ISSUE

November 4, 1959

BBM

Photocopy Manufacturing Corp.
Common Stock
(Par Value 5(' Per Share)

Price $3.00 Per Share

Donald C. Le Vine

Copies of the Prospectus

are

obtainable from the undersigned.

Moore, Rogers Opens

Fla.—Moore,

has been

Rogers

formed with offices

13 North Main St. to engage in
securities business. Officers are
G.

Moore, President,
Rogers, Jr., Secre¬
tary-Treasurer, and William M.
Charles

& Co.

Myron A. Lomasney & Co.
39

Broadway, New York 6, N. Y.

Moore, Vice-President, Mr. Moore
was
formerly with Paul A. Davis

Johnson

Northeast Multnomah,

be taken over, and what
Prices will be frozen, there might

the

was formerly
Woodcock, Hess,
Moyer & Co., Inc.

PORTLAND, Oregon — Stuart M.
Pagett is now connected with AnPerson, Randolph & Co., Inc., 1026

Donald

with

Nov

become

(Special to The Financial Chronicle)

Bryn Mawr office.

new

the

Of Hugh Johnson

just

taken

la^ now saying just what business

C. Le Vine and Thomas C. Le Vine

associated

partner in" Hicks &

Simon to be V.-P.

supposed to fill. He has
trying to get Congress to

pleasure with his announcement
that he disapproved of stopping
nuclear tests. That happens to be

Rockefeller, it is believed, was
trying to get an issue when he

was

are

been

feller

Kennedy and all of the

Price.

Charles

Sena-

issue

other Democratic mentionables.

Rodman

Lancaster Avenue.
with

with

tor Capehart, of Indiana, has fre- & Company, Inc., Rand Building,
Quently pointed out, Congress will members of the New York Stock
still have to create the jobs which Exchange

So his

become

past he

organization

assigned.
This sounds good but

direction.

They have got to get up another
against, Nixon. Poll after
poll has shown him running

the

bring in the dollar-a-year men.
They have their assignments now,
and the plan is that once war is
declared these men will move into
positions to which they have been

Congress is afraid to

among these opponents have admated since that they were afraid
he
^ would
win and the country

and

means

to set up new quar?
high officials and to

publican nomination. He seemed
to have the nomination sewed up.
opponents got up the issue
that he couldn't win. The leaders

war

mobilization

arrange

for

has

Congress

merly with McDougal and Condon

X O 11

ters

The

(Special to The Financial Chronicle)

the duties

N i

Governor

will

ing

T .QinlPV
^ 4Jaltllv J

■

hardly getting any appropriation. Then it was decided to
give it more standing by adding

re-

ing's

bombs.

CHICAGO, ILL, -Forrest Laidley

defense

•

Charles H. Eldredge & Co., 231
South La Saile St. Mr. Laidley
who has been in the investment
business for many years was for-

moved when he took a first rate
publicity man from Senator Keat¬

offer

is ap¬

With Eldredge Co.

It had

in the second place
to

___/

were

an¬

the
opening of a, new
pffice in Bryn Mawr, Pa.,

nounce

Budd

tries.

Exchange

branch

of exchange.

little

■

Bomb shelters cost

luck at all.

money.

•

and

too, that the
industry might also

conversations

Stock

Co.

these

Pa.—Auchincloss,
Redpath, members of

York

limits

Now

Fran¬

MAWR,

OCALA,

be the limit of value for this

San

New

people affected.
I
would
think,
an

the

solve them—on the part of all the

had curtailed its funds until they

Rockefeller of New

doubt

Ti AT*ppcj"

Originally it was Civil Defense
alone, and tried to get people all
over the country to equip them?
selves with bomb shelters.

much

100,000 Shares

of the

The

comes

this
com¬

parent that there is too much 90%
plutonium
going around to be
appetizing.

For short, the latter
organization is called the OCDM. '

as
registered representatives and
of their appointment as
Co-Managers

that it addresses itself to mutually

stand

Mobilization,

com¬

and the replacement
steel by other products!

petition

to contain

Auchincloss, Parker Branch

could

Hecht

Parker

health

saying that the wheat
Nebraska, for example, has

cisco from the Los Angeles office
of Dempsey-Tegeler & Company.

man¬

agement or to an entire industry.
Certainly these things take
time and patience to discuss.
Just in the steel industry alone
I
think that a
profitable long-

reports from

that commission

announced,

SAN

opened

ductivity?

run-

would
go
isolationist.
So
they
stopped Taft and put over Eisen¬
hower.^
" * r
'

man¬

agreetable—on

Nelson

Vice-President

Francisco, before the
Convention, I summed

very

daily

but both obvi-

and

tries, with

language.

flock

them

dent

Bargeron

the

encouraged by both sides in

obvi-

Vice-Presi-

meetings have

way,

ously running,

the railroad and the airline indus¬

would

of Civilian Defense and of Defense

ously

been

same

an-

ning. On the
Republican
side are only
two, both un-

greatly encouraging
these

Almost

plutonium and then other
reports, designed to be reassuring,
saying that human beings can

meeting
of polithis he is

formal

there

in¬

recommendations

course

90%

recentGovernors
also fo a gathering

■

ticians at Chicago. In
the fair-haired boy of the Office

candidacies,

they felt

lective bargaining when the par¬
ties involved are unable to talk
I

any

Presidential

addressing
problems confront¬
ing the industry as a whole, out¬
side the legislative area.

col¬

mate of understanding.
You can't have successful

statement.

getting

are

been found

* "
shelters and tried to sell his idea

Despite

once

invited to discuss

ever saw them.

the

unwise

and

so,

has got the nomination.

Taft-Hartley propo¬
people
at
thousands
of
differents points all Up and down sals agreed to by both sides before

lective

one

nouncement of

relates

Their

were

'
' J.
for the
.

from

men

en¬

Nixon

Rockefeller to succeed him.

we
or

•

the first

ferent

are

between

sides

ley Act

should be made in the Taft-Hart¬

com¬

presidents and union presi¬
between thousands of dif¬

dents,

continu-

industry,

same

together

managers

shop stewards, between

pany

provide

he is not

now

missioner

and

forum, both nationally and
locally, for a joint discussion of
mutual problems.

goes on in the full circle—in rela¬

ers,

BARGE RON

management relations.

and

labor

groups have formed
Construction Industry Joint

Conference

Collective

BY CARLISLE

management

and management to make it
work.

was needed

industry.

that

see

and

neutral

sion that Rockefeller made,

Ahead of the News

...

this kind of outside-the-bar-

gaining-table approach

tirely

Otherwise, there is the impres¬

•

construction

that

process

very

indications that

FROM WASHINGTON

•

Sometime

record

management to be¬

gin
this process of talking out
problems away, from the bargain¬
ing table, and we have had some

employers' last offer has
rejected in every instance

end
*

BOwling Green 9-8120

(1902)

The Commercial and Financial Chronicle

BANK AND INSURANCE

Of course, the difference between Adjusted
Underwriting plus

Investment Income

the

hand, and Net Earnings

one

the other

year

since or¬

Businessman's

constitutes Federal taxes.

STOCKS

Dividends have been paid

by Phoenix in each

ganization, except in 1872 and 1873.

BY ARTHUR B. WALLACE

They have totaled nearly $81

million in cash, and $4,100,000 in stock.

annually.

Selling at

about

72%,

Liquidating value somewhat

This

Week

—

Insurance Stocks

PHOENIX INSURANCE CO.—
The

Phoenix

Insurance

Company's

1958

through

annual

report

was

its

104th, carrying the company back to May, 1954, for its date of
incorporation.
It started with a capital of $200,000, which, by
1881, had increased to $2,000,000, and by 1954 to $10,000,000 through
sales of stock and stock dividends.
the par value

being $10

per

share.

•

13,000

agents

were not

dividend
is about

was

67%.

than

stock

does

source

than

The present rate is $3.00

stock

yields

doubled

qualify

the

in
a

decade

growth

issue,

Bank Occupancy

iean

insurance stockholder's cash

doubled

the

selling price.

represented

Phoenix

its

and

$34,616,000
Coverage
10,154,000
Ocean Marine
3,648,000
Inland Marine
11,621,000

American
Trust

(1958)

$9,151,000
8,008,000
22,476,000

_____

All

_____

Other

_________

NSTA

Total

NOTES

1606

Security

Association

Traders

New

York

following candidates have been nominated
year

the

announces

hold

office for

196(k

First

Vice-President—John

Second

Barker,

Lee

Higginson

Real

Reserve

for

96.694,668

Reserve

for

125.926,421

Estate

Premiums

Collection

other

Res.

4,201,005

Reserve

16,532,429

Assets——

Adj.

Secretary^Salvatore J. Rappa, Mcrgott Rappa & Co., Inc.
Treasurer—Wilbur Krisam, John C. Legg & Company.
Directors

(Twvo-Year Term)—Joseph D. Krasowich, Gregory

for

Capital

$249,821,511

Getting to investment operations, here follows

—

Govt. Bonds—__

Other

Bonds.:

Preferred
.

____

Common

1950—

23.6

are

Stocks

—

Per

Invest.

Net

Invest.

Income

Earnings

Assets

$7.37

$3.47

$8.36

Profit Situations in Smaller Com¬

tion

1.8

$2.10

62%

160

2.29

63%

47%

175

2.25

63%

52%

92.81

3.28

4.04

6.34

1.59

4.42

6.01

4.42

7.70

196

2.25

60%

1953— 110.21

0.72

4.82

5.33

201

2.55

1954— 131.74

—3.26

81%

5.09

1.55

178

2.55

1955— 142.13

—1.82

5.54

68%

3.64

JS5S— 138*40

—5-88

JncI—127.91
1958— 152.32

—8.72

5.81
6.01

—2.68

6.32

-—2.00

0.06

♦Adjusted for stock dividends: 25%

Quarterly Earnings
Comparison

Bulletin

Request

Laird. Bissell S Meeds
Members New York Stock
Exchange
Members American Stock

Exchange

it9 BROADWAY, NEW YORK
5, N. Y.

«6

Gratuity

Fund

(Two-Year Term)—Raymond C.

National

Committeemen

burg & Co.; Michael J. Ueaney, M. J. Heaney & Co.; Samuel F.

Colwell, W. E. Ilutton & Co.

3.00

86%

55%

Committeeemen

Alternates—Thomas

Office:

E.C.8

54 PARLIAMENT

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.I

Trustee Depts.:

13 St. James's
Sq.; Govt.
Rd., Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's
Sq.; In¬
come
Tax Depts.: 54 Parliament
St. A
13 St. James's

Sq.

tankert to the Government
in:

ZANZIBAR

ADEN, KENYA,
SOMALILAND "

PROTECTORATE
Branches

in:

CNDIA,

PAKISTAN, CEYLON. BURMA. KENYA,
TANGANYIKA. ZANZIBAR, UGANDA.
PROTECTORATE,

NORTHERN AND
SOUTHERN RHODESIA

Walter F.

Nominating Committee (Four members to be elected)—Joseph
Billings, Cowen & Co.; T. Frank Mackessy, Abbott, Proctor &
Paine; Joseph Mathes, Ira Haupt & Co.; William D. O'Connor,
Shelby Cullom Davis & Co.; William M. Doherty, Fahnestock &

Co.;

Joseph

North,

Ogden, Wechsler

Dreyfus

Krumholz;

John

Co.;
M.

Nathan

Mayer,

Kruniholz,

Merrill

Lynch,

Pierce, Fenner & Smith Inc.; D. Raymond Kenney, D. Raymond
Kenney & Co.; Edward A- Zinna, Smith, Barney & Co.; G. Harold

Noke, Francis I. du Pont & Co.; Sidney Jacobs, Sidney Jacobs Co.;
Thomas
M.

Larkin, Goodbody & Co.; Edmund A. Whiting, Carl
Loeb, Rhoades & Co.; Joseph F. Conlon, Jr., J. H. Crang & Co.

Members^ of

the

Nominating Committee—Leslie Barbier, G. A.
Saxton & Co., Inc.; John Butler, First Boston
Corporation; Lewis H.

Serlen, Josephthal & Co.; Edward A. Horn, Kuhn, Loeb & Co.;
John J. Meyers, Gordon Graves &
Co., Alternate; John F. Mc¬
Laughlin, McLaughlin; Kaufman & Co., Chairman.

University

•

Sales Problems

and Some Suggested Solu<

342 Madison Avenue, New

Inc.,;

Force

Evaluation Report

Nuclear

Small-sized

Plant Program
-

York

(on request).

17, N. Y.

Greenberg, C.

Saunders, The Dominion Securities Corporation.

Investor—Hugh

Columbia

Toughest

Task

Unterberg, Towbin Co.; James V. Torpie, Torpie & Saltzman;
Joseph R. Dorsey, Bache & Co.; Robert M. Topol, Greene & Co.;

London Branches

;

Morningside
Heights,;
York
27, N. Y. (cloth),

tions—Porter Henry & Co.,

BISHOPSGATE, LONDON,

80MALILAND

National

—

$5.95.
The

Alternates—Thomas, Greenberg, C.

63%

ADEN,

New

Forbes, Shearson Hammill & Co.; Murray L. Barysh, Ernst & Co.

79%

Teletype NY 1-1248-49

Spocialistw in Bank Stockt

Trustees

92%

Telephone: BArclay 7-3500
Bell

Sons; Alfred F. Tisch, Fitzgerald & Company; Edwin J. Markham, Wertheim & Co., and Joseph C. Eagan, F. C. Masterson & Co.

3.00

UGANDA,

Press,

the

and

Bullock

3.00

Head

NEW YORK
CITY BANKS

Wilbur Krisam

186

BANK LIMITED

Y%
.

ness,

Salvatore J. Rappa

186

Bank of India Ltd.
and Grindlays Bank Ltd.

Far-

Investments,

Investment Companies:
Mutual Funds, American Busi->

217

Amalgamating National

and

Con¬

Story

GRINDLAYS

—

$3.00.

AND

Whiting

ragut Road, Old Bethpage, N.

3.00

NATIONAL

/year—Investment

vertible,

188

1950; 33Va% in 1954.

$2.50

months; $50

Calls—Richard

Low

$183

—

issde; $15 for three

dale, N. J./

Price Range

High

Companies

for current

Profitable Trading With Puts

Share*

Dividend

Comment and Analysis

Smaller

Associates, P. O. Box 14, Hills¬

con¬

1951— 100.70

—8.31

Pacific Railway Company,
Montreal, Que., Canada.

Elbridge H. Smith

48.5

the following, on

Adjusted

4,54

Cornell Maritime

dian

John S. Barker

Barney Nieman

7.5
Market Adjustment-.— —2.7

0.9

Underwtg.

1952— 108.57

Propulsion—Holfhes
—

Ontario—Industrial Study—Cana¬
69,166,518

Other Investments
All Other Assets__

Ten-Year Statistical Record

1949— $84.20

Nint)

341

N. Y.

Press, Cambridge, Md., $10.

24,000 Goodrich; 23,608 Gulf Oil; 17,300
International Business
Machines; 20,000 Minnesota Mining & Mfg.; 73,242 Standard Oil of
New Jersey; 26,940 Texas Co.;
21,500 United States Gypsum.

safe¬

panies—Semi-Mopthly Publica¬

Among the larger stockholdings

Value

Crouch

solidated basis: 43,824 shares American
Electric Power; 31,000 Gulf
States Utilities; 31,750 Texas
Utilities; 31,800 First National City
Bank of New York; 34,000 Dow
Chemical; 46,400 General Electric'

Liquid.

law; how

Labor,

Ship

Nuclear

•

17.2

Stocks.

are

Avenue, New York,

% of Assets

3.2

____

partment

% of Assets

U. S.

elections

under the

funds

what reports are re¬
quired on trusteed union or-.
ganizations; what reports are
required to be made by labor
relations consultants—U. S. De¬

break-down

Pamphlets

guarded;

$249,821,511

of the company's investments:

Transporta¬
H. Frederick

union members;

assured

conducted

81,970
63,000,000

59,166,518

National

union

how

3,843,401

$10,000,000
______

$1.00.

Law—Five

union

& Other

Hampshire

request).

rights

750,000

Taxes

W.,

Labor

3,727,041

•

Minor. Int. in Cap. Surplus
Mkt. Fluct. & Conting, Res;

Surplus

Cash

Committee,
Association,
Avenue,
Washington 9, D. C.
Planning

Associa¬
tion, Inc., 1012 Fourteenth St.,
N.
W., .'Washington 5, D. C.
(paper), $1.00 (quantity prices

$7G.4(58,386
32,784,195

Exps.__

Payable

Liabilities

3,849,394

Prem.

losses__

Loss

Dividends

Course of
jl

for

Unearn.

States—

—American Enterprise

Corp.

Vice-President—Elbridge H. Smith, Stryker & Brown.

liabilities

$2,017,594

Ca-

for

United

tion Policy—John

President—Barney Nieman, Carl Marks & Co., Inc.

Consolidated Financial Statement, June
30, 1959
assets

the

New

Improving

undue volume of hurricane
insurance, it was rather hard hit,
whereas these storms have
lately passed by the northeast states.
Phoenix, being Connecticut domiciled, naturally had somewhat of
a concentration of
writings in that area, and for the recent hurri¬
cane years the losses were
heavy from this line.
•

Stocks

Consequences

and

(paper),

the

—___—

Its

nada

TIIF« SECURITY TRADERS ASSOCIATION OF NEW
YORK, INC.

underwriting showing in the 1959 first quarter
appears to have been a decided improvement largely because of
the fact that numerous
regulatory authorities "got religion" and
corrected rate
structures, particularly in the casualty lines. Also,
unprofitable agencies, accounting for possibly a tenth of the old
total, were dropped. Also, several years ago, when Phoenix carried

Bonds

)

Canadian-American

The company's

Cash

Bank

...

$99,674,000

National

Company

Growth of Soviet Economic Power

—

Economic

Chicago,
La Salle at Washington, Chicago
90, 111. (paper).

affiliates

and

Auto Bodily Injury
Auto Physical

Joint

Foreign Trade Bulletin—Survey—

National

:_—

An-,

Committee—George S. Lamb—
Business Surveys,
Consolidation,
Coal Company, Pittsburgh, Pa.

through 1958 it doubled.

Extended

the

sources

There has been good growth of premium volume, that for five
through 1958 having increased by 30.1%, while for the ten

Fire

—

alysis before the Subcommittee
on Automation and
Energy Re¬

Management is highly regarded.

taken up until about 1950.

Break-Down of Net Premiums Written

Association,
12
Street, New York 16,'

Y., 50£.

Bituminous Coal Industry

years

Expense—Amer-,

Bankers

East 36th

period;

same

The stockholder's equity in this company

1.96 times the present

BOOKSHELF

4.14%.

about

V\..

throughout the United States and Canada; and some business isx
done abroad. The company writes
fire, marine and casualty lines
of business. Volume of
casualty writings is not large, as the casu¬
alty lines

the

Subsidiary units in the fleet,

Connecticut Fire Insurance Co._^
$47,612,260\
Equitable Fire & Marine Insurance Co.—
14,964,040 V
Reliance Insurance Company, Canada____
735,908
Minneapolis Fire & Marine Insurance Co,
5,007,023
\

Some

that

dividends, also slightly

It remains at that figure today,

with the carrying value at the end of 1958 are:
"

1958,

Investment income, the

Thursday, November 5, 1959

—

Atomic

Energy

Offices

—

Power

United States
Commission,

Technical

Services,

Department of Commercep
Washington 25, D. C. (paper)p
$1.75.
Tobe Lectures in Retail Distribu¬

tion

School

the
—

Harvard

Business.

School

Graduate

Business

ton,

Administration,
Mass. (cloth), $3.

Union Constitutions
wich

York

copies
United

—

Leo

Brom-;

the

for

Republic.
East
42nd
Street,
New
17, N. Y. (paper), sjngle

—

—60

Fund

Bos¬

request.

States

Common

and

Market

the
—

European
John

Birch—Superintendent of Docu¬
ments, U. S. Government PrinU
ing Office, Washington 25, D. C.
(paper), 45£.

Volume 190

Number 5896

The Commercial and Financial Chronicle

(1903)
reign

Business and

the

definitely slowed the infla¬
tionary pressure, and business has

been

able

period.
and
a

expand during

The

tight

page 9

postwar

highs.

its

maturing
obligations.
may be higher
because the short-term securities
will be turned over
several times.
agement

the

debt

probably

man¬

run

the

inflationary pressure
decreasing the last year,

management

cost

the

Reserve

Federal

gradually

ease
near

the

*An

Illinois

address

by Mr. Nolen

Bankers

Association

tion

with

the

University

19, 1959.

Iowa
Jan.

and

Indiana,

1, .1960,

was

'1 /.

••

Wenner,
p

K1Cf &

w;ii

has

been

—

Ses-i

Building,
York

months

will

members

Youngstown
will

the

Neil

Mauthe,

Board

Campbell Forms Co. |

LOS

Sheet and

guest

Tube

speaker

Co.

ANGELES, Calif. — Neil F.
Campbell is engaging in a secu¬

the

rities business from offices at
1031

Westwood

meeting of the Invest¬

Boulevard,

tax

money

situation

crpnprnl

to be held Nov. 5 in the Midland

Co.

Hotel.

Webber, Jackson & Curtis.

J111, OeCOme general

partners of Hayden, Stone & Co.

firm

•

name

was

Neil

chal¬

should

ease

temporarily

after

But most informed

people believe

cit in

may run a defi¬

1960.

.Je^Ty-

W^nrrust face up to the fact that
inflation is

undermining the

fidence

the

American

government

con¬

people

securities

and

all

promises to pay. If the Treasury
cannot
finance without creating
money to the point of inflation, we
are in a vicious circle.
The Treas¬
ury
financing has, been causing
inflation, and the inflation has
been causing the
public- to doubt

the wisdom of
holding their sav¬
ings in Government securities, and
in the savings institutions.

If the

public, because of the fear of in¬
flation, will not purchase govern¬
ment securities then the

Treasury

must resort to

creating money and
the vicious circle begins
again.
We

all

realize

that

the

last

years have been an abnormal eco¬
nomic period. At the end of the

Europe and most

war

the world
of

goods

had

were

and

nations

desperately short

(capital.

The U. S.

huge backlog of orders for
goods both at home and abroad.
a

have

the

price

the

war

were

because

had

level
and

increase

postwar

able

sell

100%

over

yet

years,

output
people had large sav¬

our

ings and were short of goods. We
sold heavily on the international
with

market

grants,

aids,

and

credits.
The

was

prosperous

spite of the inflation because
could

still

sell

in
we

our

output with
rising prices. In truth, many peo¬
ple and some economists thought
the inflation was the cause of
the prosperity and hence recom¬
mended an unbalanced budget in
the

inflationary period.
is

There

Europe

much

and

The

evidence

most' other

that

shows

nations

to rise.

new

With the

nates
different

slabbing mill
new

was

larger soaking pits and wide slabbing mill,

cutting slabs into two

we are now

straightaway at the strip mill. This elimi¬
or more

pieces and rolling them cross-wise

picture also:

through the strip mill. Saved is the need to weld several coils together

(1) Most
of
our
people
no
longer have large savings. They
are
deeply in debt for housing

during finishing at strip mill; the waste later of cutting out the weld.

and

Oversimplified, these

goods.

consumer

„

(2)

not

have

slabbing mill is

large

backlog of demand and a short¬
of inventories. We have large

additional

inventories

makes

age

and

field.
(3) It seems

shortages

are

some

of the

reasons

why the Cleveland

efficient at making slabs, and effects still

savings later, at the strip mill. Furthermore, this

much

put in operation in Cleveland this year.

able to roll up to 74" wide

have continued

have

Internally

abroad but in our own markets.
Most of them have stabilized their
ours

ingot is handled

why Republic Steel is the kind of company it is

prices, while

way this

longer short of goods and
capital. Conversely they are now
competing with the U. S. not only,
are

new

mill

desirable product.

any
.

are

entering

competition
wide.

facts

The
of

evident

period

that
U.

life;

and compete.

will

that

strong

world

must

face

This

long

new

range

will

important factor in the payoff of management's

planning at Republic Steel. It is

Capacity Expansion

the

program

begun four

one

of the fruits of the

years ago.

stop raising prices
We think our sys¬

tem is the most efficient and
pro¬
ductive in the world.
The years

ahead

mill is

good

test of

REPUBLIC

our

CLEVELAND

STEEL'hh
OHIO

ingenuity!
The

ties

Federal

have

been

Reserve

holding

authori¬
a

tight

WORLD'S

mFUTION

ROSS

US MLL

WIDEST

RANGE

STANDARD

STEELS

AND

STEEL

th®

Campbell

formerly with Paine,

January, 1960.

under

ment Analysts Society of Chicago

Treasury
borrowings
will
be
heavy in the next few months, but
new

New

(Special to The Financial Chronicle)

management and fiscal operations.

the

Pittsburgh Stock Ex-»

lenge Treasury ingenuity in debt

the

Company, Peoples Bank

and

billion.
The

JSperos O.

adm itted

Daniel

hprnmp

ILL.—J.

Chairman

an¬

partners

LU UtJ

partnership in Chaplin, McGuin-

Chicago Analysts to Hear
CHICAGO,

ef¬

William F. Rowley and John M.

coopera-

PITTSBURGH, Pa.
Dreiles

of his time

t(l

changes.

Nov.
4
by Joseph E.
Swan, senior partner of Hayden,

the

Illinois, Oct.
.

to his personal affairs.

nounced

Annual Bank

Management Conference held in

become

Hayden, Stone
Co., in which capacity he will

be able to devote

Daniel F. Rice and Co. in Chicago
branch
offices
in
Illinois,

Stone.--

before

will

Pft

Chaplin Partner

said!e 1 is anticipated>MrRice

-i

qDBFOS iJFP

acquire the offices of the firm of

fective

money

change

part of the

limited partner of

Hayden, Stone & Co., 25 Broad
St., New York City, members of
the New York Stock
Exchange
and other leading
Exchanges, will

Florida,

future.

become

Daniel, F.

and

push, I believe
authorities

will

organization.

swan

Daniel F. Rice Co.

boom

employees of Daniel F. Rice

and CO.
new

luncheon
'

will

over

market in the

problem, the Treasury
spending-this fall must'be met
by borrowing additional funds.
This

Since

can

Actually this figure

addition

the

and rising competition is likely to
place a damper on both labor and

Treasury Problems

off

be able to maintain
of employment and

may

level

has been

Within the next
year the Treas¬
ury most borrow $78 billion to
meet

this
policy

money

longer period
by slowing the expansion.

new

high

production

all government
securities rose

and

Hayden, Stone Co.
To Acquire

supply since the fall of 1958. This

has tended-toJevel

credit

has

Money Mart
Continued from

and

money

PRODUCTS

Jb»

The Commercial and Financial Chronicle

(1904)

that

aware

nical

sees, one,

restrictions and

recent lessening of BrJtisH trade

removal

of remaining exchange

controls. And, three, warns France

in 1931.

sterling in 1926-1928—which led to British gold suspension
The latter monitory

stantial

from the

monetary

port Bank by the British Govern¬
ment

maturity

before

welcome

prise

came

the

strength

it is
of

gesture

and

major

tion. British

cles

Einzig

advantage of the Conservatives if
the repayment had been

made in

time to influence the result of the

general election,
that

the

the decision

day

would

There

announcement

can

shortly before polling
have induced many

waverers

However,

since

vote

has increased its

Conservative.

the

Government
majority anyhow,

this aspect of the matter

is of

practical importance.

fenses

of sterling on the eve of
election, because in case of a
Labor victory the new
Govern¬
the

ment would have needed the $250
million and a great deal more to

the

resulting pressure on
sterling. As things are, all experts
agree that the reduction of the
gold and dollar reserve by $250
no

difference from

the point of view of the prospects
of the pound. Although the autumn
season

is fairly advanced, sterling

is still at

thorities

premium, and the

continue

au¬

able

increase their gold reserve.

Even

though the extent of the influx
of capital from abroad for invest¬
ment following
on
the election
result

less than

believed

have

expected, in the

been

course

of the next year or so it is

likely
figures/The
prospects of the balance of pay¬
ments, too, are viewed with opti¬
to attain considerable

mism.

For

currency

these

reasons

long

the

only

that is convertible

to bear the main bur¬

international
If there

movements
several

are

spread.

evenly

con¬

imme¬

her

with

the

But it is to the interest of

the free world that neither France
nor

any of the Western countries
should draw excessively on the

American

gold

reserve

building

their

The repayment of the .$250 mil¬
before

maturity is

only the

first step in Britain's effort to
pay

re¬

in kind the invaluable assist¬

ance

States

received

from

the

United

during and since the

the gold standard it was bound

exposed

when there

shocks,

several

were

while

of them

system was bound to operate
smoothly.

Above

all, the British gesture
help the United States
payments by its ex¬

is liable to
balance

ample!
tries

A number of other
in

coun¬

position to help, and
now that Britain has
given a lead
they are more likely to help. They
are all under a debt of
gratitude
are

towards

year

re¬

the

They should draw their
gold from other sources as far as
possible. '

deserves

changes

views

there

move¬

excessive

assume

dimensions.

careful

disturbing
are

monetary authorities of the
tries concerned
such

The

the

coun¬

there ought to

be
in good

exchanges initiated

time.

ex¬

between

serve

will

charge
will

this

feel

lead.

United

shows

debt

position

to> dis¬

way

countries

the

Germany is well in
do

France

likely to be in

States.

other

impelled

Western

France.

the

and so
particular

so,

position to

is
is

prove

its gratitude for American aid. As
a
result of a solution of the Al¬

gerian problem there is bound to
be

wholesale

French
States.

funds
It

repatriation

from

the

Western World

the ultimate

re¬

with the

remaining discrimination
against dollar impbrts before very
long. [Ed. Note—Shortly after this
was
written, Derick Heathcoat
Amory, Chancellor of the Ex¬
chequer, announced Britain would
remove
import restrictions on
of U. S. and other countries'
goods.] A removal of the quota on
many

American

imports may not be
of
immediate
practical
signifi¬
cance,
seeing
that
at
present
car

was open to debate
they were ip demand
their split possibilities or

for

their electronic

for

•»#

prowess.

-4*.

'l*

Aluminums

the softer

were

section, production cut¬

two,

had

the

Hudson

have sold

1954
low

these shares

1958. It cast

over

were

cloud

over

that -their

dictions

their

and

pre¬

troubles
market

widened

enough to take up
the speculation now wasn't the production expanded so
over
whether they will hit busily since World War II.
par but how far above that
Values Hunted
line they will get before they
-With so many of the glam¬
run out of steam.
our issues selling at exagger$
a t e d
times-earnings ratios,
There was a bit of caution
as

Studebaker

the

over

$5.25, and

unruly

since

particularly

shares,

will be for

authorities. to

the

does

pressure on

the dollar and

outflow

United

for all free

part

Even

all

free

though

Governments.

technically

the hunt

for issues that

was

conform

still

what

Government would

have

been

position to insist

non-discrimination

Bretton

under

the

Woods

rules, throughout
the postwar period, until recently
there has been
But

such insistence^

most countries could well

now

afford

Early

action

be not

only

abandon

States.

not

result

gold

pressure

discrimination.

that

a means

the

end

would

for relieving

balance

pay¬

this
in

a largefrom the

scale

are

would

for

the

also

strong
on
sterling
and
was
largely responsible for the even¬
tual suspension of the gold stand¬
pressure

ard in

1931, must not be allowed
repeat itself. At that time the
authorities

made

use

their increased financial Governor
power

over

waiting

dawdling,

steel strike that is

was

out the
taking an

litical pressure to bear

the

depressed of the major

still

sections.
;

i'fi

❖

Harris

■

Intertype i n the
increasing toll from the gen¬
printing group was one that
and which has
showed
a
modest
12-times
reached the point where v it
will take weeks, even months, earnings ratio although since
-

eral economy

fill

the pipelines. The

full extent of the boom won't

its merger with Intertype, it
one of the most diversified

the

aid

was

much

*»*

tpo one-sided.

though the United age. It has been posting new
States remains by far the strong¬ recovery peaks since the Au¬
est economic unit in
the West,
gust-September setback. The
other units have become strong
action indicated that a sudden
enough to be able to reciprocate
settlement in the steel strike
the

But now, even

assistance received.

could

tion,

Elder & Co. to

The

Admit McEneaney

Elder

Building,
York

Company,

members

Stock

the

basic discussion was

how much the strike will trim
from estimates of

1959

earn¬

earlier this year
before anyone anticipated a
record-breaking duration for
ings made

the labor

impasse.

Rails, Utilities Lifeless

New

Rails showed

Exchange.

Society to Hear
CLEVELAND,

Ohio

—

Gori-Montanelli

cardo

Dr.

Ric-

the

Society

meeting of the Cleveland
of Security Analysts to
Nov.

12.

The Harris-Intertype

man¬

agement

than

felt

.The

dividend.

stock

betteh*

yield of the cash
payment alone is about aver¬
age

and in some quarters is

held

for

due

improvement

since

earnings for the latest
fiscal year ran well past twice
the
cash" dividend
require¬
ment.

Oils

sign of life

Intriguing

.Oils had their strid ent

immediately by this champions, particularly when

group and the extent of their
rebound
is definitely moot.

was

disclosed that the

tipathy of mutual funds

Utilities, weighed down by ward the oils in the last

Italian Embassy's Foreign Invest¬
ment Office will be guest speaker

be held

1957

Gates Radio.

since the effects of the strike
were

late

acquisition

is partial to stock
touch off some jubila¬ payments and this year larded
its cash payment with a 5%
at least momentarily.

James

Cleveland Analysts

The experience of 1926-28, when
the repatriation of French funds
from London resulted in a

list

the

into gold.

Recalls Gold-Suspension

the

holders, without converting them

French

em¬

French

authorities
to acquire and
hold
the dollars sold by French
private

Much

in the field, leading in virtu¬
United States but
be known until that happens.
impressive gesture of
ally all phases of graphic arts.
*«'
solidarity by the free world. The
Moreover, it is in the elec¬
The
reciprocal character of assistance
bright technical situa¬ tronics business through the
should be made evident. Hitherto
tion was the industrial aver¬
ments

Even

withdrawal

barrassing.

to leave the group as

Dawdling Market

the

United States

French

that

ensure

movement

scale

serve

an¬

to¬
sev¬

market, were eral years seemed to be
drab. Both, how¬ veering. Massachusetts Inves¬
ever, were able to hold com¬ tors Trust, for one, increased
fortably above their year's its holdings of Standard Oil
lows and didn't show any im¬ of
Jersey
and also added
mediate intention of testing Honolulu
Oil which it has
the support levels.
been doing rather persist¬
»j»
the

tight
similarly

money

sterling to bring po¬
Now With Ladet Co.
on
Britain,
(Sptecial to The Financial Chronicle)
thereby
undermining
confidence
American cars are not
sufficiently in sterling. In the
The glamorous space age
diaries
of DENVER, Colo.—-Edward G. Garcompetitive on the British market
Moreau, Governor of the Bank of ber is now with Ladet & Com¬ issues continued to run into
to reach even the existing
quota. France
during the period, this was
But the possibility for
pany, Inc., Central Bank Build¬ occasional trouble, profit-tak¬
expansion
candidly admitted. It seems to be
is there.
ing. Mr. Garber was formerly ing
safe to assume that this
cropping up rather
history at
Another way in which Britain
any rate will not repeat itself. The with Amos C. Sudler & Co. and quickly on any new runups.
will help the United States will French
Government must be fully L. A.
Some loosely grouped in the
Huey & Co.

where it

whether

metal

of $8, crossed $88. Since
merger
of Nash
and

United

war.

away

the

United States

gold re¬
should be regarded by the

"space age'' category,
like
Motorola, had reached levels

American backs by Kaiser and Reynolds
easier going Metals
chilling the section
by far and in the process that had overproduction and
shares that had a low last price troubles through 1957Of

Motors

the

Britain

It ma^ be considered certain that

the -Government

for

though the F.
McEneaney
will
acquire
a
hoped that the gold reserve will
gold is there and the United States membership in the New York
be replenished in due course.
could well afford to pay out all Stock
Exchange, and on Nov. 12
foreign holders of dollars, a large- will be admitted to
A Way of Saying Thanks
/
partnership
lion

seesawing this week. But the
independents in the auto
section showed no signs
of
running out of popularity and
they were among the brighter
spots in the list.

own

serves.

STREETE

normally regarded as con¬
countries, out of trading in them had forced
servative ratios. This category
which help can be expected in
the
New
York
Stock
Ex¬
ly to arise from the^progress to¬
difficult times, but which should
included many neglected
ward sterling convertibility, but
not be depleted during periods of change to ban stop orders. It
it will be a change in the right
items, notably the oils which
didn't
affect
the
heavy
turn¬
strength and prosperity.
direction.
showed momentary strength
but
the
stock wasn't
It is also to be hoped that recent over
The situation may best be com¬
after some good earnings re¬
official pronouncement
in favor quite as willing to sail into
pared with that of the gold stand¬
of removing trade discrimination
ports were published but
ard in the
old days.
new high territory as AMO.
When only
will be followed by action on the
which died out rather rapidly
one
gold currency was genuinely
diate benefit to the dollar is like¬

considered fair to weaken the de¬

million makes

remains

vertible currencies that burden is

the

Possibly it would not have been

face

concerned.

of funds.

what puzzled
about the timing of the operation.
It would have been clearly to the

doubt

are

den

Paul

some¬

are

States.

are

dollar

it is bound

cir¬

political

the

coopera¬

level that would

world

non-residents

residents

goodwill

move¬

natural

increase

to
a

sterling, as
This
matter
concerned,
and by a relaxation of that con¬ thought, before
ment,
should
trol
as
far
as
United Kingdom

far

because

which

be helpful is

exchange controls

sterling, and
also

likely

by the removal of the remaining

the

dence

Britain

confi¬

to
the

this

wanted

reserve

sake of

another direction

Yet

Govern¬

ment's

orientation.

indicates

would

impress

risking an economic
the
underdeveloped
their
political re¬

countries

because

come

gold

their share in the assistance with¬

thereby

WALLACE

sub¬ two

changed position of the franc, and
by increased assistance to un¬
much of the additional gold wouldderdeveloped countries. It would
have
to
come
from the
United
enable the United States to reduce

setback

Lon¬

don. It is wel¬

out

sur¬

France

need for a
exchange of views, and for support of U.S. gold reserves.

envisage

AND YOU

...

long

prosperity in France.

increase

ment.

rassing Jtrain on U.S. gold. The writer underscores the

LONDON, Eng.—The repayment
of $250 million to the Export-Im¬

still

we' are

It is necessary to

unless the French Government acts wisely, to an embar¬

U.S.A. and,

though

the revival of

observation is based on the expectation that the

Algerian solution will lead to repatriation of French funds

THE MARKET

way from a settlement of the Al¬
gerian problem, there are already
repatriations of French capital as The stock market went in for
a
result of the increased stability
divergent moves and erratic
of
the French
Government and

mistake against the U.S. dollar as it did to

not to repeat the same

are

world.

advancing loan repayment moves helping the U.S.A. especially if it
induces other countries to follow suit. Two, hopes it will lead to
-

strength of the dollar

Even

Thursday, November 5, 1959

strength

matter of vital interest to the free

By Paul Einzig
Einzig

economic

of the United States and the tech¬

Avoiding Gold-Suspension
Dr.

the

.•«

»*«

ently.
❖

With

the

oils

well

de¬

pressed, the expectation was
that

the

months will

see

couple

considerable

.Volume

190

Number

5896

The Commercial and Financial Chronicle

tax

selling in them. It served
keep potential buyers re¬
strained despite the favorable
earnings statements.
to

❖

turned

seems

Collier

Publishing. The stock
has worked back from its low
of a couple years ago and the
company, after shedding its
loss-producing magazine a c tivities, h a s progressed to
where a 4% stock dividend
declared. This is the first

was

return

shareholders

than half

dozen years.

•<»,

Crowell-Collier

expanding its radio interests,
its book division apparently is

thriving and. earnings
tax-free

losses

because

subsidiaries

1959-60, with the balance
available to subsidi¬

made
in

during

manner

underwriting group managed
jointly by Blyth & Co., Inc. and
Harriman Ripley & Co., Inc. on
Ocfti, 28 publicly offered a new
issud of; 350,000 shares of $5 par

Quarterly

dividends

stock

common

the

basis

The

new

the

are

Net

proceeds from this offering
by Central and South

West

$3,200,000 of bank

repay

make

additional

investments of about $6,000,000 in

816,000,
on

will

basis.

not

receive

$2.70

per

dividend

The

this

amount

Nov. 30.

company's

operating

Arkansas and Louisiana.

At June

30, 1959 the system provided retail
electric service to

than 807,-

000 customers in 770 communities.
In the 12 months ended June 30,
1959 consolidated operating rev¬

are
prominent
sports.

long-lterm

d<^R $64,350,000

637,317 shares of

common

par
10,-

Club

Los

of
be

honor

the

has

conservative

Opens

Angeles is

SPRINGS, Colo.—
conducting a

Albert F. Haslam is

(Nov. 5).

securities

the

The event
world champion

1909

business

Altair

from

Drive.

too.

"Leisure Leader" Favored

Brunswick-Balke, the lead¬
stock

the "leisure"

tion, has had

plus
split, but

long

held

favorable

lax I ):

run

the inevitable stock
still

where

sec¬

118

Hill

re¬

gard widely. There seems to
be no saturation point yet for
its

bowling

and

alley

item that

The

is' Clevite

GEVRAE

neglected

expanding

tronies

in^elee-

Corpy^fre

Graphite
still widely
regarded as a cyclical auto
parts enterprise. Last year its

Bronze company,

auto

business

40/1

day,

you-

home,

farms,

industry and medicine.

while

vitamin-mineral

than $11 million in medical

research is spent
to

down

was

sales,

every

products for

serve you

capsules: Sound
addition to your family's nutrition. A product of Cyanamid's Lederle Laboratories,
where

Cleveland

old

products that

earn¬

ings, if realized, would make
it still conservatively valued
although the high price tag
necessarily makes it s o m ewhat speculative.
but

chemistry's magic makes

than 6000

pinsetters

estimates

some

each year finding
fight sickness and disease.
cttc

ways

vajvamid

ex¬

panded its electronic partici¬
pation to classified devices for
the military and a wide range
of

activity

prosperous
with

first
last year
profits in

now.

able

year

this

mates

with

13-times esti¬

that

well past

offers

3V2

not

d i

necessarily at

with

cide

They

are

those

way

wall tile:

for keeping

Brightest

your

bath¬

beautiful. New easier-

rooms

presented

any

time coin¬

the "Chronicle."

those of the

to-wash Formica wall tile

re¬

yield of

[The views exvressed in this article
do

FORMICA

year's results,

well-sheltered

dend

The issue is avail¬

around

its

had

expanding

sight

devices.

electronic

other

This

author only J

sists the ravages
tots,
to

of time and
gives lustrous long-life

modem colors.

c ea IV Al 7vt I

With United Securities
(Special to The Financial

Chronicle)

GREENSBORO, N. C.—Romey C.
Williams, Jr. is now with United

CRESLAN*

acrylic liber: Made from
Cyanamid's magic molecule.

Securities Company, Southeastern

Building.

With Joe K. Matheson
(Special to The Financial

Creslan is the

Chronicle)

HICKORY, N. C.—Lee R. Beaman
has

Joe

added

been
K.

the

staff

new

choice for

With E. M. Adams Co.
(Special to The Financial Chronicle)

cott
E.

has
M.

become

Adams

American

Endi-

connected with
Co.,

Laraway

Building.

lux¬

of items from cloth¬
ing to carpets. Look to Creslan for
colorful, carefree living.

Northwest.

EUGENE, Ore—Claude W.

ury assortment

Matheson, 250 Third Ave.,

C\V

Cyanamid Company,

(Special to The financial uhroniclej

COLORADO

item,

ratio

film

ceremonies.

this shelter
Its recent
been around 10-

earnings which makes

this

presenta¬

sports columnist
the Los Angeles "Times" will

master of

although

times

Valley

price

sound

still

are

field

feature

color

A. F. Haslam

being held at the Biltmore ball¬
will

ball

present.

winter games.
Braven Dyer,

stock.

LOS ANGELES, Calif. — The
eighth annual sports luncheon of

today

the

developments by
Jack Geyer, public relations di¬
rector
of
the
eighth
Olympic

Annual Sports Luncheon

room

Squaw

Los Angeles Bond Club

the Bond

additional

tion

talization, adjusted to reflect this
offering, consisted of $319,965,000
of

will

year's program will be

As of June 30 consolidated capi¬

value of preferred stock; and

many

editors and writers and other who

paid

and

celebrities

The special guests will be leading
figures from college and profes¬
sional
football
ranks,
eminent

ing on June 30, 1959. Comparable
figures for the 1958 calendar year
$146,806,000 and $26,184,000,
or
$2.54 per share on the same

were:

equal

Dodgers
club's

the 10,287,317 shares outstand¬

currently on
cents per share.

sub¬
sidiaries—Central Power & Light
value common stock
of Central
Co.,
Public
Service
Co.
of
Okla¬
& South West Corp. at a price of
homa, Southwestern Electric
$60 per share. The underwriters
Power Co., and West Texas Utili¬
bought the stock at competitive
ties Co.—form an integrated elec¬
sale by offering the utility holdingtric
utility system operating in
company $58.51 per share for the
portions
of
Texas,
Oklahoma,
issue.
will be used

of the system were $153,233,000 and net income was $27,-

enues

out next year.

runs

1961-62.

been borrowings,

has

during
aries

to have

Crowell-

corner

Common Stock

stocks

common

Publicly Offered

An issue that

Cent' 1 & South West

(1905)

cvaatamx x>

30 Rockefeller Plaza, New York 20, New York

offices

The Commercial arid Financial Chronicle

(1906)

Costs and Benefits of Our
Farm Programs an

Enigma

support and control programs spe¬
cifically provide anti-trust ex¬
emption. On this issue the record
is quite clear, and so are the rea¬

people to compensate for the in¬

sons.

sponse

None
ward

Ilopkin,* Chairman of the Board

By Jesse W. Tapp and John A.

of Directors, and Economist,

National Trust and Savings

Association, Los Angeles, Calif.

these programs

is some percentage
of some parity price.
Yet the
explicit intent is a transfer of in¬
come to farmers, and the methods

Chairman
•f Bank
economist
analyze limitations of our farm program and its supporting or col¬
lateral activities. The authors' analysis shows "we are ... in the
dark concerning costs," income benefits, consumer shifts, distortion
af economic structure, effect upon agricultural enterprise, indus¬
tries and market, and on suppliers, their competitors and proces¬
sors which,
in turn, affect major sectors of national and world
economies. Besides this lack of statistical information to judge the
farm programs, they also point out that the monopolistic programs
are plagued with "crippling deficiencies" that make them self-defeating.

—■

objectives of the pro¬
means

normal

are

"monopoly" is used in
its naked technical sense with no
normative content whatever. The
word

p£fce
supply

attempted as

food

the

a means

marktet competition in
and
agricultural
in-

of diluting

dustries.

Government

In recent years,

there has been

aJm2?^ed
eJPar}sl(m
m the efforts
of
the
Federal
Government to

ernmental farm price support and

production

control

relation

the

programs
usual concept

"market1 competition"

derived

from

competition"
in
the
agricultural industries.
The basis for the present Federal
Trade
Commission
inquiry into
and

the distributive trades of the food

industries is

example. Refer-

one

the

suggests

logic

of
and

some
some

eco-

these

intent,

price

purse

control

pinge

sim-

im-

which

them,

upon

(2) There

real conceptual

are no

structural differences between
these

monopolies

governmental

and

those

which

have

effort

defeat

inevitable

the

tendency of the individual enter¬

evade

monopolistic

the

other

determinants

vidual

farm

profit

the

indi¬

account.

Thus, the implicit and fatally
deficient assumption with
respect
to the input-control programs is
the

belief

that

output

can

re¬

duced from the competitive level
to an amount that will sell at the

specified support price solely by
limiting one major input factor
all

farms.

assumed

that

been

al-

le§ed to exist in the private economy-

genders

the eliminate atomistic adjustments
individual firm not and private profit viewpoints of
his own production the individual farm with respect to

strong impulse on

decrease

as is required to make their other input factors aside from
monopoly effective, but rather land. There is a natural tendency

sales

or
.

the
to

them.

expand

this

sense—

individual

farmers

adjust

with the use of Federal
Treasury to support the effects of
demand shifts
government mo¬

the

nopolies seem to work more ef¬
fectively than the allegedly pri¬
vate ones. Nonetheless, they are

of the fixed land input at a known
price support. This is a crippling
deficiency from the operational
standpoint of a good monopolist.

along

—

inherently

unstable.

have

They

nature

and

amount

their

other

inputs so as to maximize
their outputs under the constraint

lated

sion of total

requiring support¬

der

products if their prices are

raised

relative

which

modities

those

individual

controlled

products

exceed

substitutes

their

zero,

is al-

nearly the case, then

ways

in¬

creased output or volume of sales

cal

time is inevitable.

This

problem
cluding entry over time.
in

sec¬

engenders the typi¬

monopoly

Thus

response

pre¬

The

massive

quired

the

first

Section 32 and the

counter

programs

the

re¬

inevitable

demand resulting from
monopolistic price fixing. Paral¬
lel to this is an equally impressive
decline in

battery

Scope

government

of the Monopolies

The

economy.

food

tural industries
of

the total

have

grams

tinuous

are

and\ agricul¬
major part

These pro¬

economy.

in almost con¬

been

for nearly three

use

their

and

influence

dec¬
has

spread to almost every producing
area of the American agricultural
economy.
While no real analyt¬
ical

information

have

must

been

well

long analysis is needed with
respect to the importance of these
monopolies
in
the
American

there

dumping

output or sales. This
is why government must use its
police power to punish violations

ades,

limitation, government has devel¬
oped such collateral and support¬
ing devices

individual

substitutes

are

in demand or production.
Secondly, if output elasticity for
the

output,V

com¬

either

operation,

limitations

can

but

some,

inher-" not really been able to defeat
atomistic counter adjustment

afflicted with

are

ond difficulty

programs—

Federal—are

methods

Thus government

overcome

means

government. Atomistic competi¬
tion remains with respect to all

decrease in demand for the regu¬

ing

P1? and classical monopolies in
an(j

has

by
ail, of the difficulties
afflicting
the
old-line " private
monopolies.
Government can re¬
quire universal participation in an
no

spect to these controlled variables
is removed from the
private com¬
petitive firm and transferred to

the
Where sales rather than
inputs
of are
controlled, the difficulty af¬
participating
farms; flicting individual
entrepreneurs
they have not successfully count¬ is the inevitable
tendency to in¬
ered shifts of demand; and most crease
their individual output or
important they have not achieved sales in response to an enhanced
the one real necessity of effective
price whereas the success of the
monopoly—limitation on expan¬ program requires a decrease in

over

; "

'' ■'[

nomic theory.

"maintain

food

supply

schemes

John Hopkin

ent limitations

both state

Ambivalence

The

support¬

are

The Collateral Programs
All

fixing and production or number
of
hypotheses,
control programs which proved by experience, and

been

have

the impact of

here

payments from the Treas¬
In short,
both classes of

by the authority and the
of government.

governmental intervention or asunwarranted in
terms of generally accepted distribution incident to these pronorms.
Nor is there any moral grams.
connotation in this presentation.
Economic analysis of the gov-

issue

but they
also buttressed by direct or in-

collateral activities in or¬
maintain
a
reasonably
stable control position over time.
All monopolies, whether govern¬
there is yet no real knowledge of
the facts of income transfer or re- ment or private, run the risk of a

sistance has been

and

involve" part of each

problems of agriculture have been oly framework with respect to
real and very troublesome, intent, methods, limitations and
There is no implication here that their likely effects. Unfortunately,

real

government

consumers,

supply manipulation

Jesse W. Tapp

^ery

The

programs

type of transfer of in¬

from

ury

adjustment

the

These

same

^difect

problems of the farmers.
decades

can

channels

come

wvell known. There

For

cial
the

competitive
forces
are
is less agree¬
ment about their effects although
the inventories of farm products,
which the government has
ac¬
cumulated as a result of its con¬
tinuous price fixing efforts, are
an ever present reminder that the
farm problems of the government
are now in a very real sense quite
as
troublesome as are the farm

Devices

programs

stocks.

modifying

monopoly.

Thursday, November 5, 1959

anti-trust prosecution if undernature,
the
taken without the sanction of goveffects
in terms of deviations ernment.
Hence, the programs
£rom a competitive market struc- can be analyzed within a monopture—of Our major price suppoit
end supply control programs. The
as,

associated with successful

this limitation applied to all in¬
be classified
mandatory participation and in¬ dividual
enterprises would result
operationally into
two
groups.
voke penalties for violation.
in
a total volume of
Those exemplified by marketing
output com¬
Monopolies which do not com¬ patible with long run mainte¬
agreements and orders in general
authorize or require the sale of a pletely destroy the profit-identity nance of the monopolistic price
smaller quantity than that which of participating firms are inevi¬ support. Effective monopoly op¬
would move under atomistic com¬ tably unstable. In order to main¬ eration is limited by the funda¬
a •' price-support
objective, mental instability of any partial
petition and yield a consequent tain
rise in the prevailing price.
The individuals must be limited with monopoly and also by the dif¬
second device involves specifica¬
respect to their output or sales. ficulties of administration, alloca¬
tion by government of a minimum The very specification of the price tion, financing and enforcing of
price level in primary channels support or the development. of such large-scale controls. More
the
collusive
limitation
over
and
the
transfer
of
unsalable
important is the inability even
supported products from commer¬ sales or over a single input en¬ of the Federal Government to
The

is to discuss the
objectives and the

nature and

authority and funds to try to
limit the
inevitable
supply re¬

arrangement, to let his colleagues
carry the umbrella or, once in, to
get out. Government can require

The

in demands. It has

the

monopolis¬ prise

of income transfer are

tic.

Our assignment

grams

aims to¬

goal and the governor of most of

Respectively, Bank of America

agricultural economist and better known as
of America, Mr. Tapp together with the Bank's

Known

the programs

precise monopolistic maxi¬
mization of income.
The general
a

evitable shifts

its

compliance.

treasury to induce

these
types
of
monopolies, the individual farm
really loses the right to make
only one decision
the amount
of sale it is permitted to make.
Against this, it is always induced
by the program itself to increase
its

sale

or output.
The entrepre¬
viewpoint and counter ad¬
justments of uncontrolled profit

neurial

determinants

atomistic.

are

These

important

monopolies in the absence of

for

the

monopolies upon the other func¬
tional segments of the agricultural

by government.

and

failure

forceful

The

Furthermore, the direct
in dumping or in

involved

costs

primary

reasons

tinued

economy.

the

available,

indirect effects of these producer-

programs

unrepentantly

are

such

con¬

intervention

Lessons

Government monopolies in agri¬

(3) The operating differences
limiting entry through collateral culture, like any other similar
designed fundamentally to limit
between government and private
programs
have- been astronomi¬ arrangement result in
only par¬
entry.
The section 22 programs
monopolies are in the main atcally high. Here again, there is no tially monopolized individual en¬
are examples; however, the major
government activities. In contrast tributable to size, and especially
precise accounting or authorita¬ terprises.
Where only one or a
entry - limiting mechanism is to
with
this
kind
of
tive analysis. But perhaps more few
action,
the to the greater power and Treasury
input factors such as land are
limit the amount of certain inputs
to

ence

will

journal

trade

any

clearly
indicate the immediate
and pressing importance of these

Federal

lesser
for

Government

decades

several

massive

and

—

carried

expensive

highly

the

states —have

the

measure

(4)

Federal

to
of

tenance

affect the
jnaincompetition at
the

processing and distributing levels.
There
is
obvious
inconsistency

these

among

activities

goals,

(5)

other

functional

enforced

supported by government
have

long

and

appear

greater capacity for
survivai than
that

run

have

\hos*

been

stated

exist

pri-

business,

vate

plore
in

interest
or

here

the

purposes

nature

hensive
ment

the

massive,

compre-

can

continuous

govern-

the

farm

appraise

the American

economy

level,

and

primarily at
to

lesser

degree the supply, processing, distributing,
and
consuming
segments.

The Hypotheses

Despite the ambivalence
ernment
and

policy, the

price

production

of gov-

support
sup-

ply control programs are attempting monopolistic devices at the
farm

level, wnich

wouid

achieve

farm

limit

sale

involve

their

the

objectives,

amount

they

available

for

primary channels to a
quantity than that which
would be available under free
competition. Similarly, in so far
as
they ar^ effective, they raise
lesser

the

and

control

operations
be described and analyzed as
simple
Marshallian
monopolies,
their' In
so
far
as
these
programs

competitive, struc-

of business

agricultural

consider

prevailing

commercial

price

channels

+v,o^

primary

level
u

kighei ^an ^at which would
have prevailed with

an atomistic

structure free of the intervention
of government.

State and Federal

commodities.

These

have failed to attain
major objectives for one ob¬

programs

vious

Not all of the input

reason.

factors

limited, and

are

the

limited

amounts

and

land is
propor¬

tions of other inputs are still sub¬

ject to the entrepreneurial discre¬
of the

individual farm.

business
and

dent

Most
governmental
programs
for the support of farm prices and
the

these

and

The Frame of Analysis

ex-

Rather
the

programs,

impact
ture

is not to

policies.

are

controlled

farm

analyze this ambivalence

governmental

prises

tion

methods, and effects.
The

devoted by

their

Monopolies

— which
may
be
individual farm enter¬
the production of the

land

—usually
are

government monopoly at the farm

designed clearly to limit level, and
destroy competition at the farm levels.

adversely

there

differences in the effects of

some

programs

level and perhaps in consequence

Government,

consequence,

remains

competitive

The

indepen¬

important,

considered, let alone
analyzed. The effects of these pro¬

agricultural enter¬
industries
and
markets,
to
the
controlled
enterprises, and to the suppliers,
grams

upon

prises,
with

their

respect

competitors, processors, and
are
automatically ef¬
upon
major sectors of the

consumers

fects

national

and

Public Monopolies

all
monopolies
have
the same motivation,
they
use
the same basic methods and
they

indicated,

are

subject to the same basic
Government,
how¬

limitations.

is in a substantially superior
position with respect to develop¬
ing and maintaining monopolies
from among numerous, otherwise
ever,

independent, producers.
It can
by law the inclusion of
the total supply of the commod¬
enforce

ity in
ment.

the

monopolistic

Government

can

arrange¬
tax

its

economies.

monopolies

they

are

must

structural effect

have

all
a

suc¬

direct

the enterprise

controlled, and, conse¬
quently, on their suppliers, their
customers, their competitors not
subject to control and upon a
series of related industries.
The

Participating

inputs

the

output

support price.

ple.
to

For

by ^adjusting

The lesson is sim¬

government

operate
would

effectively

efficient monopoly,

required completely
to
destroy
the
entrepreneurial
identity of the participating firms
and

profit

control

every

determinants.

one

its

to this
point, at least, it has either been
or

unwilling to take this

nopolies

even

other criteria.

indications
of

if inefficient by any
Nor are there any

that

tolerate such

farmers

total
if

would

complete surrender

their management

such
even

function

governmentalization—

somewhat

higher returns

could be foreseen.

Effects

Enterprise

controlled
the controlled volume of

respect to

its

might have rendered
these monopolies efficient as mo¬

directly

With

expand

other input factors. This
tendency
is fortified by the known artificial

step which

Monopoly
If

the individual enter¬
prise is automatically induced to

unable

The Structural Effects of

cessful
vs.

world

outlook

of regulated,

been

even

with respect to the con¬
trolled input factors or to the sale

Private

costs

tion and sales limitation have not

except

paricular commodities specified
directly by statutes.

indirect

the

the distortion of economic alloca¬

Farms

There has been discussion
the

past

decade

of the

over

efficiency

sales, in effect a large implications at the farm level of
programs.
Relative prices
small and competitive these
enterprises
become
one
single of the supported commodities may,
in fact, have been higher than
monopoloid
firm.
Authority
to
make certain decisions with re¬ they otherwise would have been.
outputs

number of

Volume

Number 5896

190

Proponents of
gue that they
income.

the

though

likely

about the

ar¬

raised farm
don't know
this is true, al¬

not

programs

The Commercial and Financial Chronicle

have
really

whether

goods would have been pro¬
duced in both instances; however,
this

assumption

able.

and

source

have

unreason¬

seems

Without such

programs

been sufficient

have

re¬

com¬

industries

food

and

agriculture.
in point.

case

firms

Some of the

industries

and

connected

transfers remain unmeasured

of the industry were those arising
from a variable demand (which is

there is

even

and

compelling analysis of

what might have occurred without
these monopolies.
As

of having re¬
imposed on single in¬
relative profit alterna¬

consequence

strictions

puts,

the

tives

from

binations

different

input

com¬

have

undoubtedly been
Furthermore, the rela¬
tive volume, timing and product
allocations may well have differed
distorted.

the

ing

processing and market¬

cotton

demoralized.
ill.

able

economic

structure.

desir¬

critically

uncertainties

effects

legislation
not

amenanle

government

ad¬

decision, which often

to'

foreseen,

are

economic,

analysis,

not

to h&ve dis¬
From
the

effects
capitalization of monopolis¬ criminatory
relatively fixed allo- standpoint of the total co'ton in¬
cations may have meant that only dustry, th^ hypothesis
that .* the
the original participants in these price-support programs have re¬
duced
uncertainty Und brought
monopolies have really enjoyed
enhanced income
through these stability to the industry, seems
The

tic values of

questionable.

devices.
Effects

There is
net

the

the operations of

supply

inputs

programs

upon

the

marketing

input control and the sup¬
price are determinants of
productivities of all of the
inputs going into a farmer's busi¬
ness and, therefore, of the demand
for inputs. Accordingly, demands
farmers must have
in

some

yet

way

unmeasured.

feed

grains*

Market

Effects

Clearly, the

general

failure

The effect of these programs on
the market structure

measured

price,

substitution, or entry
elasticities facing firms, has never
been analyzed.
Although no one
has, as yet, really measured the
direction
or
magnitude
of
the
shifts

demand

supply func¬

following

generalities

reasonable.

a p p e a r

Supply

curves
for
several of the controlled products

the

quantitiy and quality of other and their competitive
products
inputs can be varied by these seem clearly to have shifted to the
partially monopolized individual right. Demand curves have shifted
farms when price is specified and to the left for some of the
prod¬
when land is limited, but no con¬ ucts and to the
right for competi¬
trols

is to transfer in¬

programs
to

agriculture. Therefore

might

reasonably
income

expect

that

would

effects

one

have

received special analysis and that
statistical series would have been

developed

dence

such information

other

the

measure

income

and

Moreover,
CSS payment

have

records

tabulated

not

been

analyzed in terms

and a host of output—increasing point;
the cotton
vs.
synthetic
techniques, perhaps at the expense story is clear also, as is the do¬
of factor-saving innovations. With mestic vs. foreign Cotton in the
either market or sales
control, world market. The rice industry

similar distortions of the demands

facing

their

Effects

The

Handlers

much

now

learned
as

exercised

because

foreign customers have
the

virtue

substitute

for

soft

wheat-

high-priced

rice.

The problem of who,
in

The

fect

likely effects of farm
government control

precisely,

While

there has been

incidence

the

of first

out

monopolistic

other

instances,

ment

exists.

know

Effects

customers

partially
monopolized farmers is the devel¬
opment of what amounts to a fixed
upon

demonstrated

agricultural

the

President's

the

In
such arrange¬
simply do not

pricing

also

enforcement

activities

ment

Here, again, to our knowledge, no

modifications
decisions

analysis of

com¬

arrangement
products are pur¬

while other

raw

chased from

relatively competitive

effects

must

portant

do know that these
be

particularly

consumers;

program

nothing is really known with
spect to
structure
Effects

the

effects

among
on

market

processors.

Industries

Again,
ence

re¬

both logic and experi¬
indicate that these
programs

Few quantitatively

"U. S.

posed introduction of the $50,000
maximum

might prevent further
proliferation
of
such
popular
magazine articles, but would not
modify materially the figures in
President's

lem

it affect

Nor

message.

the poverty prob¬

dividual farms of the nation. Con¬

James E. Forbes have been added

stable in

have

inherently

are

to the staff of
&

these

surely,

altered

market

and

programs

agriculture.

these

although it is

programs,

becoming increasingly evident
that

that

feel

consumers

the

heavy burden of incidence finally
settles

To the extent

them.

upon

that this view is right, the income
effects are likely to be regressive.
Estimates
benefits

incidence

the

and

cost

of the

price-

our

useful

appraising the policies
in adjusting poli¬

of the past and
cies

the future

better

the

bite,

their

type

effects

programs

must

those of any other monopoly. The
total

effects

clude
and

really

both

income

substitution

effect

measured

in¬

consumption

the

effect

one

has

amount,

mechanism, of total income trans¬
fer to farmers

programs.

Nonetheless, insofar

they have been effective their im¬

PORTLAND,

Ore.

Lindley

now

Pacific

Coast

Philbert

—

Stock

Exchange,

these

If you

pro's did

investment

trust when its experts were

ciding to buy
better

off, would

de¬

you

interesting idea in

Diversifying at

Decisions," in

the

At the outset of these ambitious

government

control

programs,

only

industries

were

basic

volved.

Basic

industries

in¬
first

major commodities closely
related as major inputs to other
processing or distributive trades
were

and

involving

export or other
which
would
permit

bottleneck
effective

adminis¬

monopolistic
Within

basic

matter

commodities

which these control devices
be

applied

became

might

fact

any

Government, once it undertakes
control, must, like any
other
monopolist,
control
the
whole supply in the market; it
must, therefore, limit entry; and
market

must

stand

ready

shifts in demand.
must

find

built-in

means

to,

the

counter

instabilities

all

sus¬

tained monopolies which do not
completely destroy the enterpreneurial
identity of participating

Government

has

been

summary

In¬

—

the

Dow-Jones

Industrial Average and what is

significance to you? That's

the

subject of

article,

another timely

"That Industrial Aver¬

pepperiest stocks of the

age." Other articles add to the

year—at.both ends of the scale,

pleasure and useful information

'in

you'll find in the November issue

"Volatile

Stocks

the exchange

1959,"

Magazine-exam¬

the exchange

Magazine.

ines first the 18 stocks with the

advances

sharpest

during

the

first nine months. Then the spot¬

the

light is turned oil the 18 stocks

sold:

with

the

most

precipitous de¬
cold, in this

vealing article.
Who's

newsstands.

vember

number—and

velopments,

nine months

only $1.50.

in, the NewYork

Stock Exchange looks at the rec¬

P.S.:

ord of dividends

makes

stocks. The increases in
were

very

listed

some

in¬

the

friends

You'll want to know the

rate of

score

and you'll find it conven¬

each

for

Magazine

associates. Attach your

check at the

your

$1.50 per subscription for

name.

attractive

gift

card will be sent to each person

"Common

Dividends Spurt to New

exchange

All

unique, welcome and

gift list and

year.

tabulated

investing.

inexpensive Christmas gift for

substantial.

Other industries fell behind last

iently

reading

about the stock market, new de¬

Paying the Dividends?

paid

the

enjoy

full year of informative

Now that the returns for the first

dustries

Mail

below for the next twelve

issues, beginning with the No¬

re¬

are

Magazine isn't

exchange

coupon

clines. You'll find each of these

stocks, hot

counter

Furthermore, it

fascinating

what is

Just

The

its

in "Diversification

dustry's Two-Way Street."

table tells you.

Here's
Implications

of which

Genesco, Inc.

story of
company's successful pro¬

gram

Volatile Stocks—Hot and Cold

The

President,

He tells the instructive

stocks at the

quarter?

the

have had at the end

following

describes the expansion

method of the company

time, how much profit

the

problems than it

tion." This is how Ben Hill Willin gham

investment trusts. Had you

lie in "diversification with direc¬

the

Magazine. Here you'll find what

would you

raise

solved. One key to success may

happened to 16 equities acquired
by one or more of five closed-end

same

Profit

Diversification has been known

current issue of the exchange

same

most

Magazine.

exchange

informative article,"Large-Scale

bought the

and timely article in
November issue of the

the

sell, how much

hurry? You'll find light shed

Investment

useful

hajd a pipeline into the

inner councils of

invested

you

III

High,"

on your

list.

af¬

enforcement, administration, allo¬
cations
of production, or selling
rights, relative demand shifts, and
the necessities of controlling out¬
put.
The programs have been
massive in scope, but they have
not in fact really been successful
even
if measured simply by the
criteria
of
effective
monopoly
alone.
There is little hope that
they could be made successful.

•

tb-is
the exchange

II Wall

Magazine, Dept. 7

Street, New York 5, N.Y.

Enclosed is
Please send

(check, cash,
the next It issues

order),

o/'PHft-RX-CHA'NGE

-i

money

Magazine','

•

name.

address.

by means of these

Zilka, Smither

with
Zilka,
Smither & Co., Inc., - 813 South¬
west
Alder,
members
of
the

obtain the desired income effects.

government monopolies

these

Joins

(Spwial to The Financial Chronicle)

doubt created

structure

support programs should be very

tial

nomah.

industries.

Suppose

this

yet, we are much in the dark
concerning the incidence of costs

flicted with the typical difficulties
of all monopolies with respect to

however,

Andersen, Randolph
Co., Inc., 1026 Northeast Mult¬

|structure in

agricultural

monopoloid

un¬

democracy.

Almost

firms.

upon

(Special to The Financial Chronicle)

sequently, they

message

possible effects of these par¬

im¬

however,

PORTLAND, Ore. — Harold B.
Christopher, David R. Dobson and

"Time," "Fortune" and
News" magazines. The pro¬

valid analyses have been made of

monopolistic

With Andersen, Randolph

the

entrepreneurial identity of the in¬

86th Congress, and by recent

the

face

programs.

definitive nature is

yet available.

consumers;

markets.

control

are

proces¬

of the several

its

with

modities handled when in the pur¬
chase of some raw products they
a

of govern¬

arrangement.

sors
relating to volume, product
development, labeling, promotion,

and

dies

Association.

mo¬

articles in

addition,

given by Mr. Tapp and
before the American Farm

Hopkin

Economics

bene¬

fits, the sharp contrast between
objectives
and
the
results
is

months,

Consumers

what

made

hands under

destruction

industries?

analysis

income

easily apparent. In
the terms, the methods
and
the
channels
of
marketing
must almost
automatically have
been altered in order to support
the administrative, financing and

sold

virtual

these

address

*An

Mr.

without

ineffective

agriculture up to some socially
minimum
standard.

production from one region to an¬
other through the programs has
both efficiency and income effects
upon processors and handlers as
well as to producers.
In some cases, the raw products
are

government

even

are

parts

acceptable

commodity able to exert sufficient
legislative pressure to have itself
designated and therefore quali¬
price.
Consumption in primary
fied to avail itself of these tech¬
channels is constricted, and price
is raised. The direct cost of subsi¬ niques.

ori¬
pro¬

the

agriculture should be the ulti¬

grams on handlers or processors
of farm products seem to have
received little attention. Shifting

ented,

that

nopolies

evidence,

decades, indi¬

They have beyond

tration.

The immediate and obvious ef¬

cates

other

Who really Knows?

ten¬

empirical

food

though no real or definitive anal¬
ysis of these possible effects seems
yet to have been made.

All
and

implicit in the underlying objec¬
tive.

placed over other profit tive commodities. The emergence
Acreage allotments of these shifts would be expected
and price supports combined have from
theory and has in fact oc¬
almost
certainly stimulated the curred.
The
loss
of
the butter
demand for fertilizers, insecticides market is not the
only case in

should also be expected, al¬

violate.

theoretical

the past three

over

This is also

continuing

of the economic and social criteria

are

move

dency
both

all of the various segments

determinants.

suppliers and the market
channels through which they must

possible.

inci¬

benefits

This is not true.

costs.

would

tions induced by the programs, the

these government programs really
to control output
indicates that

Redistribution

Income

unifying objective of these

many
come

the
The

Both

farmers.

the

affected

enterprises that

ported

beep

generalized

wheat and rice.

the

for inputs by

conclusion

and

the opinions of competent leaders

measurement of the

effects

This

strengthened

Suppliers

The

made

mate

and which may ter.d

Effects

bean

why--there

y v

farm level.
How much have they
recipient of the net benefits
which, at
least, are impartial).
Now the of these payments, has never been cost, who has benefited and by
primary uncertainties for many resolved. Inherent in the politics how much, how have they affected
segments of the cotton industry of the programs is the objective of
are those associated with
changes bringing the income of everyone

the

can

are

weather

have yielded, at least in terms of
a

Others

and

partly
amenable
lo
economic
analysis and forecasting) and a
variable supply (which is associ¬
ated,
in
part,
with
variable

ministrative

interest,

confused

are

Previously, the

from the magnitudes which would

consumer

that which

been

n any monop

esting
with

have

must

.r*;

their

The cotton program is an inter¬

higher farm
income than actually was realized
under the programs. Unfortunate¬
direct and indirect income
ly,

sulted

pact

mar¬

keting agencies, insurance financ¬
ing and, in fact, a whole battery

re¬

might

shifts

output

materially influenced
the
risk-bearing, profit-division and
decision-making of such collateral

industries as transportation,
assuming modity exchanges, and other

—

kind and quantity

same

have

(1907)

the

farm

level,

these

only partial monopolies.

why the

counter

are

This

adjustments

farms have been induced and have

CITY.

.STATE.

fcO

The Commercial and Financial Chronicle

(1908)

Thursday, November 5, 1959

"tantrurg-,"S;-G;rhafr4Hereasedits.

NEWS ABOUT

Our Reporter on

capital stock from $375,to $500,000, effective Oct. 22.
(Number of shares outstanding —
50,000 shares, par value $10.)
common

000

BANKS AND BANKERS

GOVERNMENTS

Delray Beach National Bank, DelConsolidations

New Branches

•

etc.

New Offices,

•

Beach, Fla., has increased its

ray

Revised Capitalisations

•

JOHN

CHIPPENDALE, JR.

capital stock from $300,000 to $400,000 by the sale of new
stock, effective Oct. 19. (Number
of
shares outstanding — 40,000
common

The

2nd

Branch of
Bank

e-42nd

v e n u

Street

The First National

New

York

City

for

opened

business

on Nov. 2 in the
recently
completed addition to the Daily
News building. The branch was
located for 30 years in the news¬

paper's original building and was
•known as the Bank's East Midtown Branch.
:

Ward Neil, Assistant Vice-Pres¬

ident,

the

Manager,

has

and

Bank

81
branches in the five boroughs of
,

Dilljen

William

dent

ficers

Helm

following

Chemical

"York Trust Company, New
John H. Miller, Assistant

York:

Sinclair

Eric

stock

the

Chairman

the

Board.

office

authorities

Oct.
is

operation

29.

June,

Berkeley

Square
"West End."
The

office

new

ment

the

was

begin

will

supple¬
of
Morgan
London of¬

bank

for the required
the new office are

Brian

President

Leeb,

ities"

the

said

Mr.

last April with J.
P. Morgan & Co. Incorporated to
form
Morgan
Guaranty,
estab¬
lished an office in London in 1897
merged

branches

opened in England by any Ameri¬
bank. The merged bank also
continues the close working rela¬
can

tionship with J. P. Morgan & Co.
maintained with Morgan Grenfell
& Co. Limited, merchant bankers
London.

(
*

The Merchants Bank of New York
received

approval

in
:

making
-

•

Morgan
joined
Bankers
Company in 1928. He has
majority of his career

spent

the

trust

work.

Assistant

Morgan was named to head
the Personal Trust Division of the
bank

1951.
ft

The

Blue

Ball,

Ball

Pa.,

National

has

Bank,

increased

its

capital stock from $100,$200,000 by a stock divi¬
dend and from $200,000 to
$250,000
by the sale of new stock,

common

effective
Oct.
23.
(Number
of
shares outstanding—10,000 shares,

value

par

$25.)

State

York

Stuart

Cashier of

Carpenter,

Vice-Presi¬
dent in
charge of The County
Trust
Company,
White
Plains,
N. Y., Oct. 30 completed 40 years
©f service

with the bank.
ft

The

Barren

National

Edward

Assistant Cashier of

Bank

White Plains,

Westchester,

N. Y. is

announced

by Ralph T. Tyner, Jr., Chairman,
and Harold J. Marshall, President.
Mr. Hterren began his
banking
career

1945

with

Irving

Trust

.Bussell

Rivers

President

elected

Vice-

First Camden National Bank and
Trust Company, Camden, N. J.
*

The merger of The Altoona Trust

Company, Altoona, Pa. and Cen¬
tral Trust Company,
Altoona, Pa.
became effective as of Oct. 30,

Co.

Ltd.

Leumi

likely be made
day or so, and indi¬

that

maintains

Named

consolidated

than

$320,000,000

commercial bank
branches.

100

directors

The

Anglo-Israel Bank Ltd. were: Air
Commodore C. E. Benson, Chair¬

cash

pay-out

will be at

the

government

minimum f igure.

The

the

der

level

raise

were

investors

attract

near-term

short

that

ligations.

needed

ob¬

which

funds

demand,

since

would

ordinarily be
business purposes

used for normal

being

are

invested

liquid

Un¬

til the steel strike is settled, how¬

buying of short governments

ever,

is likely to -be -sizable.

*The

Treasury

funded

the

4%%

with

certificate

4~</&%

note

that

and

was

one

year

four-year
well re¬

very

ceived by the financial commu¬
nity. The refunding terms were
Sir
Henry
J.
d'Avigdor
pretty * well
expected
by
most
Goldsmid, Bart., Deputy Chair¬
money
market
specialists
even
man; Y.. Foerder; J. M. Geri; H.
though there was more than a
Gruenbaum; G. Y. Hinwood; L.
passing amount of opinion that
Istorik; Professor R. F. Kahn, and
the 4%s of
1964 would
be re¬
J. D. Layton.
'■ opened. However, there have
,

not

Stock Offered
A

public offering of 100,000 shares

been

stock of B.B.M. Photo¬

side,

common

Manufacturing .Corp. was
made
on
Nov. 4 by Myron A.
Lomasney & Co. The stock was
priced at $3 per share.
Net proceeds from the sale, ap¬
proximately $243,000, will be used
for
expanding
the
company's
equipment business, financing the
research and development of an
electronic photocopier and to dis¬

sale

and

accessories

for

1, Hey ward

Denyes,

Ohio

Cincinnati,

National

Bank

electronic pho¬

Giving effect to the sale of the

shares of common stock,
$500,000 to $600,000 by the capitalization of the company as
new
17,
1959, was-:
233,200
stock, effective Oct. Of Aug.
23.
(Number of shares outstand¬ shares of common stock with a
ing—30,000 shares, par value $20.) par value of five cents.
Ohio,*

increased

was

100,000

bit

the

under

generous

have

well

cash.

issue

taken

investors

have

existing
tight
it was much

conditions

result in

only

was

than

interested in

believed

refunding

will
small attri¬

very

that

rather

Accordingly,

that the November

tion.

Holders

2V£x5s Included

1962

(the

2V2

of this

owners

for

issue, optional
Feb.
15,
1960,

redemption

Charter

issued

was

the

Oct.

Leawood

dent

National

City, Kansas City,
County, Mo. The Presi¬

Gene

Kroh

and

the

Cashier is William N. Brownfield.
The bank has

capital of $250,000

surplus of $150,000.

The

American

Charlotte,

have

the

and

HIALEAH,
ferent

Fla.—Decidedly Dif¬
Interests, Inc. is engaging

securities

offices

Officers

970

are

exchanged

4%%

note

this

due

Bank,

The

First

gage

Oct. 30.

been

formed

Russell

Institute
with

their

out

satisfactorily.

liking.

was

New

With

the- November

of the

out

way,

Treasury

billion to

$3 billion of

which will most

this

month

The

amount

for

will

new

have

money

will depend to

poses

funds

new

likely come later
early December.

which

obtained

refunding

the next venture
into the money
will be to raise some $2

the

Soon

Borrowing

Money

purr

extent

some

how the holders of the matur¬

ing 3%s and 3V2S react to the re¬
operations, especially as
to what they will need in the way
of cash.

£>}■■."

What

the

small

the

4%%- note

with

investor

will

still

considerable conjecture

matter of

spite of reports that there has
buying of the •"right" from
sources which have indicated they
were for the small saving group.
been

appears

banks and

from

the

likely

though the savings

savings and loan
feel

will

ciations

refunding,

new

but

most

much

however, than
the

asso¬

effects

some

lesser extent,
the case with
offering of the

was

money

magic 5s.

;

Dinner to Honor
Wall Street Men
*

dinner

'•

)

Jerome

honor

H.
Hentz
&
Co.;
McCarthy, President,
Merrill Lynch, Pierce, Fenner &
Smith
Inc.; -■ and
Clarence
Q.
Michalis, Trustee, Seaman's Bank
for Savings, will be held on Tues¬
day, Nov.
24
at the WaldorfAstoria sponsored by the National
Conference
of
Christians
and

Lewine

Michael

•

Chairman of
the Board, Chemical Bank New
York
Trust
Co.,
is serving as
Harold

chairman

Helm,

the

event.

Subscriptions for the dinner are

issue

The

Treasury by making the
exchange offer to the holders of
the optional 4s of 1962 (and to the
that

extent

the

owners

the

are

President;
stock

4%%

new

Frank

the

Piedmont National Bank of Spar-

Alvin

has

Inc.

26
en¬

business.

Sweetser,
Friedman, Ex¬

ecutive Vice-President and Treas¬
urer;

and

Hoch Reid,

note)

will

dinner

will

the

one

major events scheduled to be held
this

year

York

New

City

celebration of the 31st anniversary
of
the brotherhood
organization
which

lighten

was

founded in 1928.

Secretary.

Form Standard Sees.

the refunding load of next Febru¬

when

ary

turities
care

some

will

$11 billion of

have

ma¬

taken

NASHVILLE, Tenn. — Standard
Securities
Corporation has been
formed

of.

with offices

the

Third

National Bank Building to engage

Bennett,

offices

securities

new

from

Terrace.

Broadway, New York City to
Officers

53rd

Planholders Inst. Formed

sale

four-year maturity also

make

Nov.

The

Refunding Sidelights
The

43/4%

are

due

Nov.
meet

Federal Reserve
est

owners

rities.

obligation,

one-year

tailored to

Planholders

the

business

West

President, James D. Jordan,
Secretary-Treasurer;
and ' Anne
Jordan, Vice-President.

National Bank of Raleigh, N. C.
merged under the name Ameri¬
can Commercial Bank effective
as

The

1962.

the

Commercial

Open Office

Bank of Kansas

Jackson

these time deposits

still

of 1962 turn In their securities for

Office of Comptroller of the Cur¬
rency

savings

$50 per plate, with tables of 10 at
15, $500. All proceeds derived from
1963. Those who did not exchange the sale of tickets will be turned
over to
support the work of the
the optional 4s of
1962 for the
National Conference of Christians
new
4%%
note
may
still have
and Jews in promoting good will
their securities redeemed on Feb.
and understanding among the re¬
15, 1960, by giving notice to the
ligious and racial groups of the
Treasury by Nov. 16 that they do
not
intend
to
hold
them
until nation, according to Mr. Helm.'
could

from

sale

and

offer to the holders of the* Jews.

by 5s) was
the unexpected part of the recent
operation of the Treasury, since
the

amounts

but

better
to

considered to have

was

wee

money

for

Sales for the nine month period
ending July 31, 1959, were $214,080 and gross profit was $75,872.
For the fiscal year ending Oct. 31,
1958, sales were $224,548 and gross
profit was $70,267.

has reopened
when
matu¬

four-year .4%% note at 100,

The

ture

occasions

many

outstanding issues
rities are being refunded.
The

development of
tocopier.

Nov.

too

the Treasury

it seems,

Virginia,

been

which

payments

re¬

15 maturities

Nov.

the 3%s and 3l;2S

banks

institutions

these

funding

offer

commercial
of

most

sizable

market

The short-term market still has

considerable

note had appeal for

47/s%

time

medium-term

and

had

owners

deposits, and the rate is high
enough to allow them to make

the
4%%
and
still high enough

However,

ago.

employed

was

funds

new

4%% rates
to

that

however,

smaller

the

have

was

man;

B.B.M. Photocopy

The

since

are

Refunding Issues .Well Received
with

Assistant

Bank

has

Comptroller

the

under

secured

tive

was

and

instances,

to take cash.

most

Treasury issues, mainly bills.
new

photocopy machines, portable pho¬
tocopier exposure units, and the

and

Company, New York.

■-

Beckner,

The

appointment

now

promoted
to Assistant Vice-President effec¬

Southern

business

Photocopy, organized in
1951, is engaged in the manufac¬

Va.,

fro;

Jr.,

when it

1959

B.B.M.

Isaac

ma¬

very

charge certain debts.

Banking De¬ Regional Vice - President, Tide¬
water, announced Oct. 30.
partment to increase its capital
Mr. Beckner has been with The
itock from $688,500 consisting of
Bank of Virginia since
October,
55,080 shares of the par value of
1945.
■
$12.50 each, to $790,050 consisting
ft
ft
ft
of 63,204 shares of the same par
The common capital stock of The
value.
New

copy

000

cations

op¬

successful undertaking.
This
would
seem
to
mean
that
the

Anglo-Israel

Trust

1932, a Trust Officer in
Vice-President in 1943.

Norfolk,

Bank¬

Mr.

Morgan
Guaranty
has
long¬
standing
connections
with
the
English banking scene. Guaranty
Trust
Company of New York,

the first

known

Nov.

■

named

the Federal Reserve System.

Moore

announcement.

Mr.

1935 and

bas

National

M. Rothschild
and Robert Benson, Lons¬

and

Vice-

agement,
"will
retain
primary
responsibility for the bank's fidu¬
ciary and corporate agency activ¬

Officer in

member

and

was

Governors

Senior

Trust Company's senior man¬

ers

and

Leumi

participation in the

is Israel's largest
Brian P. Leeb

will

commence .op¬ a

the

over

will

assets,

of Banks of the State of New York
of

The

Dec.

Bank

being made to the Superintendent

Bank

Office.

& Sons

the bank

—one

sponsorship

with

Which

interna¬

new

it will

Ltd.,

British

Trust

Applications

Board

new

London

the

being conducted by Bank Leumi's

W. A. Morgan

turities

Treasury

the

by the Treasury in the
refunding venture were just un¬

majority holder of
institution.
Registered

will ,take

an¬

1960, at 30
in
London's

facilities

shares,

.•?

(in translation:

erations

for

Guaranty's principal
fice, at 33 Lombard Street.
approvals

le-Israel

If approved,

expected

Oct.

Bank

additional bank¬

the

to meet

rates used

dale

ing office in London, it
the

outstanding—7,500
value $100.)
«

is seeking approval

results

eration

shares
par

the

banking

$250,000 to $750,000,
Oct.
20.
(Number of

nounced in New York and London

Trust

Cornelius

and

open an

nounced

from

effective

JMorgan Guaranty Trust Company

plans to

capital

common

Compton and Joseph
Kettle, Assistant Treasurers.

©f New York

its

head

administrative

.ft

increased

the Trust Department, it was an¬
nounced Oct. 27, by William H.

V/estervelt, Assistant Secretaries,
find

has

tional banking institution was an¬

Officer; Clarence C. Hunt, How¬

National Bank of Cheyenne, Wyo.,

assumes

Senior Trust Officer and

of¬
New

The American

Establishment

an¬

.new

Bank

ard

dividend

stock

named

been

Bank of Israel)

Harold
the

The

value $10.)

par

Company,

Trust

also

has

York

New

Vice-Presi¬

Morgan,

Bankers

v//'.

Chairman
nounced

shares,

Altoona Pat

Co.,

■

Moore,

New York City.

Trust

is Chairman, Ed4
ward B. Felty, President; Frank
Marsh, Executive Vice-Presid&mt
and
Robert A.
Clifford,. Seniof
Vice-President.
j
I
ft
ft
ft
■
|
J.

duties

been with the Bank 35 years.
First
National
City
has

Central

of Altoona

its title

under

15,
the

1960,

was

needs of

the

Banks, the larg¬

the

Nov.

same

time,

matu¬

those

other holders of the 3%s and 3V2S
that must also have short-term

liquid government
could

sell

take

out

the

their

securities

1960

certificate

maturing issuesproceeds in out¬
standing Treasury bills. In some
or

and reinvest the

securities
Harold

President;
Charles

Doyle

Wendell

business.
W.

Officers

Hammontree,

Gaw

and

Gaw, Vice-Presidents;

CILpp,

Secretary-

Treasurer; and Winston M. Moore,
Assistant Treasurer.

J. B.

Hopper Opens

MIDLAND, Texas — Jackson B.
Hopper is conducting a securities
business from offices at 208 Glenwood. He
T-T

was

TTont?

formerly associated
Po

Volume

190

Number 5896

The Commercial and Financial Chronicle

(1909)
factory

The Russian Enigma
making

states

that

economic

ability

the

Russians

The

retire

large

making

indicated

and

its

fear

use

the

government

unreliable

punisnment prevents graft
some part of
this great economic machine. This

from

printing-press

economic

fear

only where he wanted to

After

traveling two days from
Warsaw, Poland, through Russia,
have remained about

in Moscow.

one

certainly is

week

won¬

derful

out

short visit

aie

"to

with

Roger W. Babson

"Communist

guides" who show them only what
rulers

wish

■

her

book

"On

Dell

Publishing
Co.,
Inc.,
750
Avenue, New York 17, N. Y.,

price

cents.

Every

reader

own

Of the million children

attend¬

them

tainly

there

is much

that

can

talk

Unfortunately, the weather has
against us. It seemed very
to
us; two days it snowed
hard, which made it impossible to
see much from our taxi; but
the
guide took us into every building
been

money to build these thou¬
sands-of
apartment, houses and

cold

beautiful

asked to

U. S.

our

see.

Let

helpful.

add that

Embassy here

was

most

and

the

Instead

answer:

bonds

the

banks

give

selling
do

the U. S., the Russian
Govern¬
ment, which owns all the proper¬

ty, prints money to

excellent free education. This

such

highways

pay

the work¬

teachers, professors, etc. —
and also to provide old-age' pen¬
sions, etc., direct. Every worker

Carreau

Russia Now Is Materialistic

was

wretched

tion when the Revolution
1917.

Moscow had

condi¬

came

narrow,

poorly

paved streets and mostly wooden
houses.

The

first act
build

government's

new

to widen greatly the

was

streets

large

every

city

As these

old houses

built the

were

pulled down, and
going on today. This
rebuilding naturally caused the
people to worship Stalin, accept¬
ing blindly the new Communist
form of government. In the course
of 20 years this has succeeded in
this

were

still

giving

family a good home
apartment building
and—through the collective farms
—plenty to eat—with free hospi¬
in

and

tals
are

every

modern

are

the

worship

other

comforts.

slums in

now

There

Russia

such

large cities!

our

time, all church
discouraged. The old

same

Russia

rubles

for

and

nothing for the people;
decided to wipe them
out.
Almost all the people you
meet state proudly that they are
"atheists."
We, however, insisted
on
visiting one of the beautiful
remaining
open
Orthodox
churches.
Our guide stated that
she

had

never

before,
this

one

day by
all

there

been

although

church

found

attended

was

each

that
Sun¬

4,000 praying people,

over

whom

are

must

seats.

stand
True

since

worship

work.

This

circulates
consumers.

the

rent

Here

its

apartments;

profit on all goods—in¬
cluding foods—sold in its govern¬
a

ment-owned stores.
makes

profit

food.

Education

dockside

During
now

the

Goal

Stalin, and
have directed

years

Khrushchev,

The

Lakes

resume

Exchange,

Department. This newly
department will arrange
and negotiate
acquisitions; merg¬

loss

port

movement.

strike

little

that some fate
ments will be made to meet
this
new competition.
Traffic

Co.,

J. A.

with

Field
J.

has

4.4%

this

bad

order

This

with

date

was

working
$6,585,-

from

5,
stockholders
ap¬
2y2 for one split of the

approved by the Inter¬
Commission on
stock

new

issued

the

Hence

condition

gain

the

old share t©

split.

traffic

steel

lost

rubles

construct

its

large

annual

move

heavier

and

ownership

steadily

Rental

dividend

basis.

With Hannaford Talbot

off¬

SAN

rentals
of

have

cars

CO,

McDonald

Calif.—
now

filiated with Hannaford &

recent
rose from

recovered

FRANCIS

Thomas

revenue

Large amounts

therefore

currency

are

being

retired.

sufficient, small
collected, although the

are

Incentive
We who

live

are

under

should

affiliated with

hold

up
next
improvement

further

Street.

source

Street, members of
the Pacific Coast Stock Exchange,

W. C. Langley Opens

Philadelphia Branch

year,

would

revenue

220

South

16th Street, Phila¬
under the manage¬

this

delphia,

Pa.,

occur

ment of

James

Sands.

Newport News Shipbuilding and Dry Dock Company

without

taxes.

of Major Contracts

free-enterprise
how

can

efficiency and progress
giving rewards in
the

braid uniforms.

gold-

Such rewards

being given in Russia to
extent; but as there are

are

certain

22, 1958

labor

strikes, there are no
increases except to those

September

28, 1959

22, 1958

hydraulic turbines and
$45,584,675

.......

$36,978,015

September

$149,147,246
At

$120,088,182

September

28, 1959

22, 1958

$291,378,254

$398,621,707

13,818

12,703

Estimated balance of major contracts

unbilled at the close of the

period

Equivalent number of employees,
a

40-hour basis,

working during

the last week of the

period

cannot

eat

unless

disabled."

The

Company reports income from long-term shipbuilding contracts

income for any

period will therefore

unbilled balances

are

Furthermore, since the govern¬
everything and no one
and

28, 1959

Nine Fiscal Months Ended

September

building, ship conversions and

private
farm

profits,

workers

the

are

factory

told

"the

vary

from the billings

the percentage-of-completion basis; such

the contracts.

Contract billings and estimated

subject to possible adjustments resulting from statutory and contractua%rovisions.

By Order of the Board of Directors

ment owns

gets

September

sys¬

Russia

September

filings during the period from ship¬

other work

Fear?

and Number of Employees

Three Fiscal Months Ended

repairs,

form of increased salaries

unions

Quarterly Statement of Billings, Estimated Unbilled Balance

fortunate enough to

wonder

achieve

these

October 28,1959

af¬

Talbot,

519 California

PHILADELPHIA, Pa. — W. C.
$3,900,000 and should gain further Langley & Co., members of the
when the steel companies again New York Stock Exchange, an¬
start
up
operations.
If
traffic nounced the opening of an office

con¬

not

are

goal is to have

tem

(Special to The Financial Chronicle)

depression but in the past

months

an¬

nually destroyed.

as
compared with $8.27 a
share reported in 1958. The road
been
on
a
$3.60 a share

ahead, a sharp
equipment rental credits

grown

years.

Hogle & Co., 147 East First

which

are

strike, net in¬

has

provide the

expected. Income from

of the

$1,700,000 in 1948 to a peak of
$4,500,000 in 1957. It dropped to
$3,100,000 in 1958 due to the de¬
cline in freight traffic as a result

Hogle Adds

depreciation

all property.

percentage
were

for

used

are

delivered, with the

lective farms and fisheries. These

profits
charges

the

expected heavy traffic.

movements

Aug. 31

for the full year is expected
be
around
$8.75 a common

and preferred shares andl

The

result of

the

cars

equivalents

unchanged

Even with

of
will

that

shares will be

indicate

ratio

cash

$7,836,000

holder retaining his
effect the 2V2 for 1

come

would

dis¬

Commerce

Oct.; 13.

re¬

most

and

paid Nov. 23 to holders of record
Oct.' 29.
In
this
case
1 Vz
new

company

would

was

state

Sept. 1,
the indus¬

outset

become

Oct.

common

the

recalled

which

the

has

Inc.

become

was

average for

line

BEACH, Calif.—Walter S.

has

bad

car

about

proved

there is

freight

has

warehousing

like period of 1958.

maintenance work

The

compares
with $6,153,00®
end of 1958. Net

capital

con¬

during

which

and

the

With the fleet of freight cars in

(Special to The Financial Chronicle)

LONG

Cash

the road

the

strike, but the

good

CHICAGO, 111.—Terence M. Carey

Blyth

it is believed

the

has become connected with Good-

Salle

expected

aided

center.

amounted to
which

ex¬

the

carrier

Baltimore
tribution

good

drastically

ratio

lowered.

Robert C.
added to the

formerly

for

weeks

postwar period, reflecting
development of the Port of

important

anticipated gain in

repair force

that

—

North

make

should

the

opera¬

curtaiL maintenance

workers

(Special to The Financial Chronicle)

done.

cently

Goodbody Co.

was

resume

final

car

Co.,

try, although slightly higher than
usual
for
Western
Maryland.
There were some layoffs of the

♦

products,

the

deferred

order

Daugherty, Butchart &
Inc., 729 Southwest Alder

road

outbound

it is
adjust¬

probable

000

and

under

body

not

penses

the

could

ore,

ex-

However,

Manufactures
and
mis¬
cellaneous revenues have gained

year.

did

(Special to The Financial Chronicle)

Street.

This

of grain traffic for

served.

be¬

finished

the steel mills

revenues

Daugherty, Butchart Adds

Now With

stone,

from

verted into net income

that

Street.

down

movement

Much of the

Heiligman, formerly of
Williston & Beane, has also

Cole,

with
Great

and,

the

closing

fluxing

earnings

Richard

staff

benefit

tions.

Industries, Inc.

PORTLAND, Ore.
Hughes has been

and

the

formerly Pres¬

announces

coal

will

once

ident and Chief Executive Officer
of Van Norman
also

movement

opment

firm

will

inbound

joined

.The

Baltimore

opening of the St
Seaway has resulted in

some

coming months by the growing
industrialization
of
the
area

cause of ice and this
foreign ore
likely will be used to replenish
depleted supplies. In addition to

Herbert I. Segal
the organization as
manager of the Corporate Devel¬
has

i®

recent

Lawrence

revenues

approaching,

charge

to benefit

its vast electri¬

distribution, its rail¬
ways, busses, telephone-rtelegraph,
and factories; also from the col¬

duce

Now

mills

diem

per

In addition it

coming back in Russia gradu¬ wage
ally; but first everyone who is who produce more. In
fact, the
willing to work is being given 'motto is: "Those who do not pro¬
and

steel

however,

the

cal-power

shelter

the

winter

that

announce

the

collects

government

all

from

makes

ask.

you

The

answer:

for

bitu¬

move
up
sharply.
There
large stockpiles of iron ore at

are

Company, 115 Broad¬

New' York- Stock

"But how does this prevent in¬

flation?"

taxes

done

her

the

had

Stalin

newly printed

immediately

Russian churches under the Tzars

his

money among

stantly
profits

was

receives

both reduces the cost of financing

and

five-story cement apartment

buildings.

highly profitable traffic

operations,

New York City, members of

way,

men,

Russia

are

Once

copy.

Blankenship,

the

industry

further.

items.

Segal, Dept. Head

necessary.

road

minous coal and iron
ore, both of
which

English are the United States can learn about
J. R.
English- educating our young people. More¬
joined their organization.
speaking persons are very, very over,
if
any
of
the
Russian
scarce here.
Second, I can testify students feel
they
were
over¬
that our guide—a woman—took us looked in
Joins
the "sifting" described
Gould
everywhere we asked to go. She above, they have the
(Special to The Financial Chronicle)
opportunity
had
no
prescribed
route;
also, of studying under the world's most
PORTLAND, Ore. — Robert C.
every question we asked she an¬ complete
correspondence courses. Bueermann is now affiliated with
swered
frankly. Furthermore,
Blankenship, Gould & Blakely,
Russian Government Finance
tourists
from
the
United
States
Inc., Equitable Building.
are well
treated, especially since
I
was
given excellent, oppor¬
Mr. K's visit to the U. S. A.
tunity to learn how Russia raised

absolutely

heavy

the

and,

Railway

increased, W. M. stands

should

was

results in de¬

since

shipments

ing school in Moscow, about 50,000
ers, sales and private placements.
are now in colleges or universities,
f
Mr. Segal has had wide
expe¬
They are constantly checked and
rience as industrial and financial
about 5,006 are given the very ad¬
consultant and
vanced work which

strike

much of its traffic. The strike also
has curtailed

My Own" published by

this column should

steel

depends

recent

created

toi velopment of
space missiles and
see. This I do not believe. First be¬
other remarkable inventions. Cer¬
cause of the language
difference,

guides who

can

discussed

well

Garreau Appoints
free"

report

Roosevelt

At 14, they
exams and

given competitive

carefully watched to see
they deserve a college
training in science, mathematics
or
"inventions."/'. '
>
r
:

ManyAmer-

the Russian

and

are

tour

school

college buildings have been built.
Everyone must-attend school from

whether

ish.

they
compelled

beautiful

This

educa-1 Third

high school—everyone must go to
in a factory, or on a farm,
or in construction
work, or in the
army. During those two years they

would be fool¬

that

free

work

C ommunism

icans

Most

toward

those who pass are admitted
to high school for
three years. "
At the age of 17 — directly after

suburbs;
but, of course,

such

tion.

are

the

after

efforts

tell.

Earnings
of
Western
Maryland
Railway have been badly hurt by

continue with-, the

can

blow-up, only the future

Eleanor

see.

the age of 7 to age 14.

city,
with 5,000,000
people plus
2,0 0 0,0 0 0 in

to comment

great

and

may percolate

universal fear

Mr.

Western Maryland

developing in

through every
family and worker. How long this

the latter

factor.

fear is an economic fac¬
Certainly the fear of very

tor.

Babson states each family has a good home in a modern
apartment
building, plenty to eat, free hospitals, and he testifies that his guided
tour took him

RAILROAD SECURITIES

severe

government's

all goods and services sold;

explosive,

inflation

you

feel that

attributed

amounts

profit

prevent

former

which

really belongs to you."
'
Although I speak without
authority or actual knowledge, I

the spot visit to Moscow, U.S.S.R., Mr. Babson

weapon.

money by
is

work

By Roger W. Babson
While

farm

R. I. FLETCHER, Financial Vice President
K)

The Commercial and Financial Chronicle

(1910)

with

Funds Curtail Stock Buying;
Income Issues

Shar«» may ba

•ystematically
accumulated in
of $30

amounts
or more.

Continued from page

securities carrying a

MUTUAL

vesting

diversified

growth of capital and
income.

Send for FREE Prospectus
from your

Investment

Dealer

approximately $1.11

securities

frouppossible
of securities
selected
long
term

of the year

long-term

in-

FUND

first nine months
we have realized a net
gain on the sale of

share.

secondary result of

accepting these capital gains, we
have built up a backlog of cash
and
short-term,
security
issues
amounting

$10 million, which

profit¬

hope to be able to use

GEORGE A. BAILEY & CO.

ably in making advantageous pur¬
chases during periods of market

845

weakness."

LAND TITIE BIDG.,

PHIIA. 10,- PA.

Scudder, Stevens & Clark Fund
England Fund both ab¬

and New

completely from adding to
their common stock portfolio, with
stained

former

the

Following Lazards newly stated

there is only

policy

M
MB

consider¬

engaged in

able selling.

M'!a

ONE

:1?I

mutual

concentrating in

re¬
held,

issues

number

duced

completely e 1 i inmated, among other issues, Dow,
Consolidation Coal, General Elec¬
tric, American Metal Climax,
Standard Oil (New Jersey), and
Sinclair
Oil.
Newly purchased
were Merck,
Miami Copper, and
Granite City Steel.
management

investment fund
named

From Stocks to Bonds

Trust:

CHARGE

si
Iff

u
P%
&sf
if

COMMISSION

ANY

KIND.

are

offered at net asset value. There is

1% redemption charge.

Energy Fund is

mutual fund investing

for growth possibilities in electronics;

high energy fuels; missiles and other

space uses for energy; atomic energy;
oil and gas; electric and gas utilities
and

other

activities

Bonds Avoided

stocks

mon

may

reflect in their

reasonable earning poten¬
with

inherent values.

obviously

For

Fund plac¬

Eschewing

have gone
into non-convertible, fixed income
bonds in a bigger way. In today's
market 5% bonds look attractive."
"When

Broadway, N. Y. 6, N. Y.

appears to us

Also

exhibiting

an awareness

yield factor is New England

Among the devotees of markettiming is, apparently, Pioneer
Fund.
Said its President, Philip
Caret:—'In

the

management
has
fairly cautious policy

your
a

in recent months.

optimis¬

tic policy should not lead one to
believe the comforting but falla¬

al,"

common

ance

vesting,

Trustees,

Mr.

Henry E. Kingman: "The trustees
continued

their

program

increasing the Fund's holdings in
short-term
and

a t
and

o n a

bal¬

Street

Broa,d

In¬

Investors,

Tri-Continental-

all members of the
for

pi the med¬

stock buyers

included

Whitehall

group named

the

Knickerbocker

government

agencies

high grade bonds to seek to

improve the degree of security in

free

Delaware Fund; Dreyfus
Eaton & Howard Stock
Fundamental; Investment
of
Boston; M.I.T.; three

Fund;
Fund;
Fund;
funds

Chairman

have

MINDED INVESTOR

market,
pursued

whatever during the quarter. Said
its

FOR THE GROWTH

deference

somewhat tired appearance of the

Trust

Lehman

William

the United Funds group;
and its
"relative" One
Street.

Massachusetts

the

ease

Investors

The
ONE

describes

Growth,
purchases of common stocks were
more than 10 times sales.
Enlarg¬
ing on its buying which had been
newly-resumed in the preceding
quarter, U. S. & Foreign Securities
invested $5
million in equities,

booklet-

prospectus

mcKei.

ine
lormer
was
bought
by 13 managements, sold by only
2; the latter was purchased by 11
and sold by none. Du Pont was
bought by 12, and sold by 2;

acquisitions

Aluminium

Short-Seller

As
The

extreme

bearishness

was

nearer-rterm

Oppenheimer
activity is unique
excepting for one other fund).
"It
is
our
belief
that carefully
short

will

sales

the

rear"

(sold

other

the

discerned

over

POLICE

TOWARD

The

following analysis of port¬
changes, drawn from our
on
page 23 of trans¬
actions in nearly 470 stock issues,
folio

tabulation

based

the

number of

volved.

During
fund

the

September quarter
particularly
automotive, chemical, and

managements

favored

glass stocks. Also well-bought, al¬

though

more
moderately, were
banks, electricals and electronics,
foods, machinery, aluminum, cop¬

"paper,

rubber
and
tires,
tobaccos; and, to a
still lesser extent, rail equipments

per,

steels,

and

and textiles.

well

strike has

uncertainty,

What has

fund experts

petroleums

that

took

place in

enced

some

their

market recovery in
period of 1959.
On

quent decisive market declines of
the

oils, this industry-was again
consigned to
the funds'
"dog¬
house."
In
other
words,
fund
cyclical industry has been one of
chasing, rather than taking ad¬
vantage of, the market trends.

long-term

THE

FAVORED

Automotives

Cheerily said the Investment
Trust of Boston, which manage¬
ment acted as they spoke: "We
have faith in common stocks, and
with the country on the vejrge of
a
period
of
great
expansion,

best-bought

very

stock

funds

should

the

was

pointed

out above, the

issues

automotive

were

area

—

two
both in
namely

General Motors and Ford;
GM
leading, 17 managements to 13 for
The buyers of GM included
Tri-Group which bought 14,shares, and Investors Mutual
with 14,000. Other sizable buyers
included Dreyfus, One William,
United Funds, Delaware and Mad¬
ison. The solo seller was de Vegh,
which liquidated its 2,000-share
holding.
Ford
had
its
largest
buyer in Incorporated Investors
(35,000),
Fundamental
(30,000),
and Delaware (14,000 newly). The

Ford.

the

300

POPULAR ISSUES
bought stock

Leading

the Race

well."

Best

GROUPS

econ¬

in the equities, which
offer participation in this econ¬
omy, has not changed."
and

common

whole the

confidence in the American
omy

the other hand, during-the subse¬

find that al¬

basic

sharp

earliest

the

country has experi¬
jolts and shocks and

the

surprises,

liberally bought the
during their
rising

quarters of 1958, and again during

issues seeips to have been largely

dissipated.
though the

toward

phenomenon
interest. The past
a

markets of the second and fourth

Energy
Fund,
managed
by
Ralph E. Samuel & Co., remained
with the constructive contingent,
thus: "The severe forced liquida¬
tion

policies

manifest

record shows that

not changed.
represents an

interruption in the upward move¬
of business, not a turning
point
the decade of the sixties
will
be
one
of
expansion and
business progress."
.

of the drugs.

some

of considerable

ment

oils

the

economic

the

have

occurred

Management

changed the confidence that was
evident in the early part of 1959
into

General

Motors, acquired by 17 manage¬
ments,
and
sold
by
only one
(despite
the
thfcn overhanging
Du
Pont
divestment
threat* as
well as the steel strike). Runnersup were Ford
and International

Continued

page

0Nlr»M

•
%

•

possibilities of selected
of the

FUND

com¬

inc.

•

•
an

open-end management investment

Mail this advertisement.
CFC

•

enterprise with emphasis

possibilities and

Address.

long-term capital growth

current income.

Income Series

Stock Series

Dividend Series

Growth Stocks Series

Information Folder and

Prospectus

Request

.Sfate.

Prospectus

request WILLIAM

STREET

DISTRIBUTORS GROUP, INC.

Preferred Stock Series

investing in the securities of American business and indus¬
trial

Name-

63 Wail Street, New

Balanced Series

company

year-old mutual fund.

City..

Bond Series

aviation-

electronics-electrical equip¬
ment industries is ofFered by

York 5, N. Y.

SALES,

NATIONAL SECURITIES & RESEARCH CORPORATION

INC.

Established 1930

One Wiiliam

Street,

New York 4,

N. Y.

agri¬

equipment, aircraft, air¬
line, oil, and telephone stocks; as

by the Tri-Continental

fundamentals

were

cultural

the long-term—was

group. "While the steel

man¬

agements buying or selling, rather
than on the number of shares in¬

sunshine

hand,

Aircraft

INDUSTRY GROUPS

GROUP SECURITIES, INC.

this 25

United

were:

Clearly in disfavor
On

the issue

prove

MANAGEMENTS

—at least

quarter,

was

by 11, bought by 3); and
(sold by 10, bought by 2).

Merck

Equipment Shares

stocks

preceding

heavily sold, 9 managements
liquidating, without a single off¬
setting buyer. Also "bringing up

(which

selected

the

most

partial short
into by the re¬
a

position entered
cently
organized
Fund

American Telephone

WILLIAM

An investment in the growth

11
.

UNPOPULAR ISSUES
A

Electronics-Electrical

mon

Mutual Investment Funds

Aviation-

Ltd., bought
by only 2.

and sold

Power.

stabilizing and compensating in
declining markets under current
interest in bonds was put by A. and
prospective conditions."
In
•Moyer Ku'ip, Vice-President of the same vein: "In some periods
Wellington
Fund.
And
Walter of market decline, a long position
Morgan, the Fund's President, re¬ in bonds or utility shares has
ported:. "Your Fund took advan¬ provided a protective cushion for
tage oi 1 he unusual rise in inter¬ investment funds. Today, when
est rates to
increase its backlog interest rates are increasing, this
of good grade corporate bonds and policy
lacks appeal." The short
shorter term government bonds, positions taken were concentrated,
by buying new issues that were among others, in the chain gro¬
offered at about the highest yields cery field, and in the aircraft and
the
office
in 30 years."
machinery industries.
The largest short position was in
This Fund sold nearly $46 V2 mil¬
Studebaker-Packard,
to some ex¬
lion ol' common stocks during the
tent offset by a long position in
September quarter, while buying
the same company's convertible
only $13 million. Tnis represented
preferred.
the largest excess of selling over
buying in the investment com¬
CONSTRUCTIVE
panies field during the quarter.

equities

Fund, which purchased
m

gov¬

Nation-Wide Securities; Chemical

time."

the

Tel. COrtland 7-8600

its "sisters" Dividend Shares and

in¬

Members N. Y. Stock Exchange

115

4%%

get

Thursday, November 5, 1959

ernments, we take a good looksee," was the way this revival of

sound position to take at this

this policy

come,

RALPH E. SAMUEL & CO.

"For the first

Fund.

time in 22 months, we

ing considerable emphasis

Distributor

convertible

even

bonds, in the exodus from equities,
is the Boston

higher yield."

latter; Investors Mutual;
Fund; Mutual In¬
vestment
Fund;
Bullock
and

SEND FOR FREE PROSPECTUS
Write Department c

Speculative

"On the other side

yields, and such com¬

tial coupled

time

being

attractive

prices

rates

same

even

time

the

energy fields.

govern¬

the

cious philosophy propounded by
higher, we prefer for Dr. Coue 30
years ago.
Perhaps
to maintain our
an
individual may be better in
p r e s en t
percentage (18%) in
every way every day, but no sen¬
highly liquid short governments.
sible observer expects either the
We are therefore in a position to
business climate or the stock mar¬
take
advantage, through timely ket
to show any such pattern."
purchase of long-term bonds at

bonds

SELLING

short-term

"With

to 5%, and government agency

IN THE ENERGY FIELD THAT IS OFFERED
NO

are
the
Investors

yield,

General

ment bonds affording record

IT IS THE ONLY FUND CONCENTRATING

WITH

awareness

trustees

Even

Typical of managements' wean¬
ing away from stocks to bonds and

and

Fund

contribute toward

to two re¬

sults, During the

#re» of Pennsylvania Personal Property 7'«j
A

high rate of

has led

This

interest.

INVESTORS

the

marketable

proceeds

the

ing

SOVEREIGN

offsetting sales. Its new
included,
among
others, U. S. Steel, Schering,
Westinghouse, and four utilitiesCentral
& South
West, Florida
Power & Light, Gulf States Util¬
ities, and
Virginia
Electric
&
no

120

Broadway, New York 5, N. Y.

Volume

190

Number

5896

The Commercial and Financial Chronicle

(1911)

Changes in Common Stock Holdings of 67 Investment Management Groups
(July-September, 1959)
Issues in which transactions by more

than one management group occurred. Issues which more managements sold than
Numerals in parentheses indicate number of managements making entirely new
purchases or completely
eliminating the stock from their portfolios-. • {Purchases shown exclude shares received through stock splits, stock
bought

are

spin-offs

italics.s

Number

mergers.

of shares bought

dividends,

sold prior to a stock split is expressed giving effect to the
split.)

—Bought—

Sold

No. of

Mgts.

lVIgts.

Agricultural Equipment

4(2)

Deere

18,200
15,500

39,800

_____

International

Harvester.

7(1)
4(1)

42,900

5,000

4(1)

Douglas

34,000
36,100

None

North

None

American

None

Bell

None

Bendix Aviation

1,500

Boeing

Id)
2(1)

1,000

Chance Vought

35,900

37,000

3(1)
5(3)

11.700

3(1)

700

3(1)

Aviation

Aerojet-General

None

2,500
_______

—

__1

70,000
11,000

Penn Dixie Cement______

10,000
9,800

Ruberoid

1
1
2

6(5)
2(2)

132.700

5(2)
U(5)

American

None

Braniff

_____!

Airways

79,400

8(4)

23,400

2(1)

4,200

Airways__

Lines

5(2)
4

42,646

None

Ford

Ford Motor Ltd. (U.
Fruehauf Trailer

None
2

16,500
12,000

K.).

None

4,700

2,000

Kl)

Mack Trucks

None

White Motor

5,700

100

None

Electric Storage Battery.
Thompson Ramo Wooldridge.
Briggs & Stratton—

5,000
3,900

KD
2(1)

3,000

5(3)
2(1)

4(2)
2

None
*Latcr

KD
1

5,000

8,960

12(2)
3(1)

Trust,

Food

5(2)

Rayonier

800

235

3,300
3,200

Stauffer Chemical

United Carbon

1,000

American Cyanamid
Diamond Alkali

None

Freeport Sulphur

None

U. S. Borax & Chemical

43,800
| 800 '

None
1

8,000

Island

1(1)

8,100

Pittston

further

above.

Creek

'300

American

2(1)

10,500

American St.

None

2(1)

2,700
14,400
2,500

Anchor Hocking
Continental Can

3(3)
2

4(1)

8,400
1,200

10,700

American Standard

Armstrong

Cork

_„

Bestwall Gypsum

;

Crane
Flintkote

General Portland

Cement

6(1)

Building, Construction and Equipment
10,000

1(1)

4,300

1(1)

None

1,000

1(1)

2,500

None

KD
KD

OF CANADA, LTD.

2(1)
2(2)
3(1)
Distributed by

35,000

None

2(1)

GROWTH FUND
6,500
10,300
42,500
30,200
14,293

Can

None

10,700

Containers and Glass

Schenley Industries.—

4,100
26,150

CORPORATION

3,000
4,000

Coal

Pepsi-Cola

106,000

& ELECTRONICS

28,600

Peabody Coal ____.i
United Electric Coal
Consolidation CoaU

None

■

36,700

2(1)

23,660
7,400
4,000
1,000
4,500

AXE-TEMPLETON
Coal and Coke

20,000

•

5,722

AXE SCIENCE

None

Tennessee Corp
Union Carbide

27,600

"STOCK"

700

Rohm & Haas

Spencer Chemical

"B"

None

841

FUNDS: "A"

24,600

Olin Mathieson

2,700

THE

AXE-H0UGHT0N

None

Pennsalt Chemicals

Coca-Cola

.STATE

6,600

Internat'l Minerals & Chemicals
Monsanto Chemical

2(2)

6,100

CITY

700

Hooker Chemical

None

Beverages

;

ADDRESS.

35,900

Hercules Powder.

None

see

Klngsley 5-3311
NAME

9,000
13,000

Machinery & Chemical

None

5,500

ieei)

123 So. Broad St., Phila. 9, Pa.

1,000

which

distributor

Members New York Stock
Exchange

3,000
27,500

Eastman Kodak

Bank

(Holdings) Ltd

Dow Chemical

3,600
2,000
29,600
18,700
18,100
42,300
7,000
22,700

1(1)

Chemical

500

Du Pont

26,200
18,300

now

2(2)

None

Chemical Corn Exchange*

43,700

None

Detroit

None

4(1)

14,800

None

Bank

17,300

American Potash & Chemical—
Borax

13,750

Security-First Nat'l Bk. of L. A.

Plywood
Weyerhaeuser Timber

41,100
24,500

First Nat'l City Bank of N. Y.__
National

Gypsum

U. S.

Air Reduction

Chemical Bank New York Trust
Cont'l 111. Nat'l Bank & Trust—

Morgan Guaranty Trust.

and

None

2,000

_______

Chase Manhattan

None
merged

None

;

35,100

Allied Chemical

1
—

3(3)

Request

(established

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

15,800

Banks

Bankers Trust

Gypsumz

;

fWaf nei/ce/c ^rr(^o.

Kl)

9,500
4,875

Prospectus

33,000

Bloedel

58,600

None

6(1)
4(1)

5(1)
4(1)

Dana

Bank of America,—

INC.

A Mutual Investment Fund

Kl)
None

3(1)

66,000
5,400
41,700
22,000
*4,000
24,500
4,000
25,200
32,870

Cement

FUND

None

1,800
2,200

.___

PHILADELPHIA

None

12,200
20,000

__:

Star

National

30,000

4(1)

General Motors

Champion Spark Plug
Clark Equipment

6,600
15,000
12,300
5,800

200

Automotive Equipment

5,000

Chemicals and Fertilizer

125,300

American Motors

None

13,000

5,000

Airlines

United Air

9,500
115,300
30,000
93,500
91,000
49,000

4(3)
4(3)

Carrier

None

16,000
2,000
5,000
26,250

•

—

Yale & Towne

31,200

2(1)

Automotive

Trane

3,000

1(1)

Northwest Airlines

Eastern Air Lines

2(1)

Robertshaw-Fulton

Lone

Pan American World

10,920
33,000

MacMillan

1,000
2,270

16,000

Mgts.

5,000

,__

_____'

3(2)

None

Aircraft

None

—

Cement..

None

United

2,550

North American Cement "A"___
Otis Elevator.——

None

1,500

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

3,800

No. of

Lead—_____

None

1(1)

None

National

3(2)

177,800

»'

Minneapolis-Honeywell

5(3)

1,200
14,900

28,100

8,000

Marquette

48,210

Dynamics
Lockheed

■

Johns-lVTanville

General

49,000

Georgia Pacific-—-Ideal Cement—___

Curtiss-Wright __!____

25,100
25,700
9,900

1,100
22,000

3(3)
13(3)

Airlines

2(1)

25,000

12,000

8,500

None

5(1)

2(1)
3(1)

3.900

—^T__

Martin

No. Of

Sold

No. of

Mgts.

6(1)

Aircraft and Aircraft Equipment
2

No. Of

Gobain

Owens-Corning Fiberglas

6(1)

36,600

Pittsburgh Plate Glass

I ill I

Jit

3(3)

2(1)
5(1)

12,000
None

Glass

None

9,700
_____

5,000

Continued

TARRYTOWN, N. Y.

None

41,000
1,000

Corning Glass Works
Libbey-Owens-Ford Glass

49,700
28,400
17,300

Owens-Illinois

None

6(3)
6(1)

AXE SECURITIES CORP.

2(2)

500

Glass—

1(1)
on

page 24

Why not Get the

INVESTMENT FACTS

about

SELECTED
'

Til

AMERICAN

gtorgt •

PUTNAM FUND
of'Boston

Shareholders'

The Chase Fund

Trust of Boston

of Boston

balanced

Mutual

A Mutual Fund

Fund for current income

"A BALANCED FUND'S

and

for

possible long-term

and

PUTNAM GROWTH

capital.

CHASE

60 CONGRESS
New York

Chicago

□ Shareholders' Trust of Boston

Washington

Boston

Orlando

10, Mass.

and

Please sendmefreeprospectus and othaf
Information on SELECTED AMERICAN
SHARES.

□ The Chase Fund of Boston

CF 11-5

•

Address

Address_

name

below and malf fa

m—m mmmm mmmm mmmm mmmm mmmm mmmm mmmmm mmm mmmm mmm

N*m$_
Name

coupon

135 S. LaSalle St., Chicago 3, 111.
I

STREET, BOSTON

Los Angeles

•

Selected Investments Co.

DISTRIBUTORS

75 Federal Street

of prospectus and

other information—fill in

mail coupon to:

CORPORATION

Request

diversi-

INCOME.

address
or

—for FREE copy

..j.

Putnam Fund Distributors, Inc.

supervises

ltd portfolio of American
securities, selected for the possibility at
long term GROWTH of capital—ami

appreciation.

Prospectuses available from Investment Dealers

Emphasizing possible long-term Capital Growth
on

mutual investment fund

which

current

FUND

Prospectuses

possible capital

growth of income

THE

SHARES-inc.

City_

_State_
City

The Commercial and Financial Chronicle

(1912)

—Bought—

Continued from page 23

LONG-TERM GROWTH?

No. of

Mgts.

2(1)
3(1)

1(1)

38,600
3,000
6,500
48,200
4,400
30,600
7,000
26,000
12,000
27,900

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

FUND

1(1)
2(1)
2

Prospectus from your
mail coupon

dealer

today to:

2(1)

-DAVID L. BABSON

-j

MANAGEMENT CORP. I

17,000

200

15 William Street, New York

ffease send Aberdeen Fund Prospectus.

......«|

QLreeD.i..................................

....

■;

1
1

3(1)
8

•

Mead Johnson—
_——
Merck
——-—
Pfizer (Chas.)L
—
Smith, Kline & French—

2
5

38,300

FUNDS

3,800
3,500
20,400
57,000

2(1)
4(1)

for CURRENT INCOME
□ Income Fund K1

9(6)

□ Low-Priced Bond Fund B3

None

□ Discount Bond Fund B4

For INCOME with GROWTH Possibilities
□ Higrh-Grade Common Stock

7,400
15,000
■<- 500

1(1)
1(1)

1(1)

Fund SI

4
3(1)

1,885

2(1)

47,500

5(f)

Finance

Fund S4

For FREE Prospectus

describing

any

of these

Funds, check above, clip and mail
this ad with your name and address

THE

2(2)
2

3(1)
None

None

5,000

500

32,600

2(1)

16,910

5(1)

15,800

Investment

Pacific Finance—.—

——

Hartford Fire

—

Maryland Casualty—.
U. S. Fidelity & Guaranty—

None

1
1

5,000

1(1)
1(1)"-

20,000
3.040

1(1)
1(1)'

None

None
41,000
None
85.100

None
2(1);
None
4(1)-

Life, etc.

Transamerica

Industrial Equipment

2(1)

17,830
7,600
13,000
35,900
10,000

500

5,900

2(1)

3,000
5,000

None

Blaw-Knox..
Caterpillar Tractor.
Chicago Pneumatic Tool._i
Dresser Industries

•

-a•

56,800;
130.500 -

2 : '
3(3)

7,500

1(1)

Ingersoll-Rand——1,000
Singer Mfg
29.100
Sundstrand Machine Tool.—
200
Worthington—
700

1(1)
L\

14,000

1
2(1)

6.500

3(3)

....

Bucyrus-Erie___.

3,500

Joy Mfg.———

...

Metals and Mining—Aluminum

11(2)

Aluminium Ltd.

112,100

15,500
30,000

Aluminum Co. of America.
Kaiser Aluminum^

1(1)
None
4(3)
6(1)

2,126

Reynolds Metals

3(1)

9,300

U.S. Foil "B"

7(3)
2(1)

34,500

1,100

Cerro de Pasco...—

1(1)

6,100

Copper

"3(1)

8,200
39,500
5,100
45,900

1(1)

4,000

6(1)
2
,

1(1)

500
1,400
None
16,275
2,891

1
None
1(1)
2(1)

14,800

15,500

2(1)

1(1)
2(1)

Scovill

—

Copper

Mfg—

—

Metals and Mining

Campbell
and

Red

2(1)
2(1)-

20,000
None
26,800
8,900
5.000
50C

1(1) ;
None
5(1);
2(1)
2(2)
1(1)

16.000

Miami Copper
Revere Copper & Brass

2,000

11,200
36,100

—

Sound—

Howe

29,000
13,800

600
4.000

Range
Inspiration Consolidated Copper
Kennecott Copper
Magma Copper.
Phelps Dodge

800■

2
2
1
1(1)
1(1)

800

Metals and Mining

Anaconda

15,000
5.500

—

Gold

Lake....

Mining

—

2(1)'

13,100
21,000

—

2(1):

;

3(1)

;

3,700

Other

Food Products

KEYSTONE

COMPANY

50 Congress St., Boston 9, Mass.

15,700
1,000""-13,000
25,500

2(1)
1
2

2(1)'
2(1)

71,300
11,700

2(2)

1(1)
1

|
k

Do the
Investment
Possibilities in

4(3)
1

300

Gerber

Products-

None

United

Fruit

1
1
None
1
1
None
1
1

None
600
1,000
None
None

—

2,800
3,000
59,300

;

29,700
None
'^-7,400
2,000

.....

' 2,000

•

None

5,000

Armour
f
Beech Nut-Life Savers
Continental Baking
Corn Products
zj.via*
General Foods
Kellogg
Minute Maid
Peniek & Ford—
Swift
Wilson

3(1)
2(1)
3(1)
11(1)

4,200
'

3(2)

1(1)

3
5(4)

ELECTRONICS

None

Vanadium

None

Ventures

800
1,000
76,725
6,000
4,000
10,500

Hugoton Production
Republic Natural Gas
Southern Natural Gas__
Tennessee Gas Transmission——
Texas Gas Transmission
Transcontinental Gas Pipe Line
American Natural Gas

2,900
10,000

El Paso Natural Gas
Lone Star Gas—

7,700

1
I

TELEVISION-

2(1)

Massachusetts Investors

ELECTRONICS

A Mutual

are

None
None
None
1 2(2) <
4(3)
2(1)

•

3(2)

9,500

—

Mississippi River Fuel-—-

11,000
None
1,500
5,000
None
800
22,105
None
6,300
54.600
18.150
10,600
44,100

3
None.
1(1) •
1(1)
None
1

3(1).
None
1
3,
.

whose

primarily

invested for

IVfassachusetts

possi¬

ble long-term

growth of capi¬

Century Shares Trust

tal and income in

companies actively
engaged in the ElecL,_.

tronics field.

Canada General Fund
Get the Booklet-Prospectus of this

Mutual Fund

now

LIMITED

from your invest¬

ment dealer or

Television Shares

the shares of any of these separate
be obtained from authorized dealers or

prospectus relating to

investment

funds

may

Management Corp.
135 S. LaSalle St., Chicago 3, III.

VANC E, SANDERS & COMPANY, INC.

Broadway, New York 6, N.Y.

Ill

Address.

NEW

City-State-

Devonshire

Boston

Name.
YORK

Broadway

Street

Nationally distributed through investment dealers by

Mass.

LOS ANGELES

CHICAGp
120

South

LaSalle Street

210

West Seventh Street

Delaware Management Co.. Inc.
901

Market

Street

3(1) !
2(1) '
2(1)

Invest¬

ment Fund
assets

1,000
None
None
None
8,800
103,500
3,600
9,100

Growth Stock Fund

FUND, INC.

...

Arkansas Louisiana Gas__
Colorado Interstate Gas___
Consolidated Natural Gas____—

...

£/joslon J'ttnt!

——

Ltd

47,600
3,000
2,000

5(2)
2

INVESTIGATE

Refining

Natural Gas

WHY NOT

Beryllium
Hanna Mining.International Nickel-—
St. Joseph Lead
American Metal Climax

None

1(1)

Interest You?

Smelting

Brush

Kt 1,000
58,100
33,500
30,000

None
None

3,300
53,900

American

38,300

115

■*.

...

None

...

Ex-Cell-O

488

Allis-Chalmers
Babcock & Wilcox.—

Metals

CF-3

1(1)
None

9,900

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

80,000
4,400
3,300
45,990
10,500
8,7f)0

2,700

None
None
5.000
17,100

Insurance...

Fireman's Fund

—

Mgts.
-

Casualty:

Continental

12,000

4(2)

Companies, etc.

Associates

Fire & Casualty

American Insurance (Newark).
Continental Assurance
Continental Casualty
___'

4,300

—

C.I.T. Financial
Commercial Credit
First Charter Financial
Great Western Financial
Household Finance

3,000
1,000
53,000
14,900
44,925

□ Keystone Fund of Canada, Ltd.

toDept

950

3(1)
,

□ Growth Fund K2

□ Lower-Priced Common Stock

2,000
None
3,600
49,100

Aetna

—

Machinery, Machine Tools and

2
1
1
None
2(2)
None
None

1,440

r——

Varian Associates

□ Growth Common Stock Fund S3

2,050
1,300

3(1)

None
None

Sunbeam

1,000
None

None

For CAPITAL GROWTH Possibilities

750

12,000
.

No. of

Insurance

Sold
.No. of
Insurance

3(1)
1(1)
1(1)
None
1(1)
1
•
3(2)
4(1)
3
10(3)

750
800
10,200
None
37,000

—

Raytheon Mfg

None

□ Income Common Stock Fund S2

6(4)

Consolidated Electrodynamics—
Consol. Electronics Industries—
General Electric
Hazeltine
I-T-E Circuit Breaker
Philips' Lamp Works
(50-guilder shs. or equivalent)
Radio Corp
——
Siemens & Halske
(DM 50 shs. or equivalent)—.
Sperry Rand
Sprague Electric
*
Texas Instruments
_—
Westinghouse Electric...
Hoffman Electronics—
InternatT Tel. & Tel
.....
Litton Industries——
Philco—
—

61,500
4,500

6(3)

Mgts.

2(1)

1(1)
1
1
3(1)
1

"V.

Ampex—
' Collins Radio

No. of

4(1)

Electronics

4,400
8,800

2(1)

•

Mgts.

6,000
800
300
51,100
5,000
11,500
2,000
500
None
3,000
500
25,000
9,000
12,500
35,700
84,400
25,200

Warner-Larftbert
Abbott Laboratories
Lilly (Eli) "B" —

■'

3,000
2,200
2,000
20,000
31,500

3(2)

state

—

Electrical Equipment and

Dept. CFC-66

Name

No. of

Bristol-Myers
Carter Products
Norwich Pharmacal _
—Parke, Davisu_——
Rexall Drug & Chemical—
Schering
—
Searle (G. D.)_——-——Sterling Drug
Upjohn
Vick Chemical
—

4,400
19,300
13,900
72,000
5,500

2(2)

ABERDEEN

No. of
Drug Products

•

...look into

Sold

—Bought—

Interested in possible

Thursday, November 5, 1959

Wilmington 1, Delaware

Volume

190

Number 5896

The Commercial and Financial Chronicle

—Bought—
No. of

No. of

Mgts.

Sold
Shares

Mgts.

12.500

Northern Natural Gas

30,600

4(2)

11,700
37,800

Panhandle Eastern Pipe Line

10,400

3(1)

United Gas___

76,600

4(1)

Office Equipment

2,200
9,151

8(1)
2(2)

-IBM

Corp. Ltd
Burroughs—_

_J_

None

Pitney-Bowes

None

18,600

\
_

14.900

4,500
12,000

1*2

1,400

Louisiana Land & Exploration.^

Murphy Corp.

—

Sinclair Oil

31,800

.Standard

Oil

51,283

..Standard

Oil

42,300

_Sunray

Kl)
None
i

None

;

4(1)
1

British

6^00

.Cities

8.400

.Gulf

10,400

None

<:None

3
1

None
5

;

;__

Petroleum

__,

Oil
Oil

___/

Oil

Transport & Trading Ltd.
Socony Mobil Oil___
_•_

200

Standard Oil of California^--—

"Texaco
Oil of California
Union Oil & Gas of La.___.__J_

Union

{None

2(1)
4

0,600

'5(1)
2

17,500
18,800
11,000
49,800
20,100
47,900
0,500

;

8,200

<3
3

Champion Paper &

2,500
21,900

800

22,700

None

2
b

2(1)
2
1

1(1)
2(1)

2(1)
2

$4,160
2,800

8(1)
2(2)

Fund.

Second in popularity were

Allied

21,305

5(1)

and

Chemical, soon-to-be-split,
Carbide. The largest

West Virginia

______

Pulp & Paper

Riegel Paper
—

Gas

Electric

6,300

2(1)

6,500

29,100

4,500

General Public Utilities...

52,400
4,500

Idaho Power

3,000

Iowa-Illinois Gas & Electric____

9,700

1(1)
1(1)
1

None

1
None

3
1

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

Kansas

City Power & Light____

8,900

1
1

Kansas

Gas & Electric

Kansas

Power & Light

2,500
2,000

2(1)
1(1)

Middle South Utilities

/Montana Power.

J__

31,900
1,000

Continued

—with

Group.

Affiliated

Fund

with

Tri-Group which led other buyers
with 21,000 shares.
Dow, Monsanto, and United Car¬
were
also in good demand.
One William was the largest Dow
bon

followed by United
Science
(2,760); offset by sales
totaling 25,000 shares in a closeout
by Lazard,
and
additional
close-outs by Pine Street and Axe
A. Of Monsanto, Affiliated Fund
buyer (4,000)

Best

for

COMPANY
423 Texas National Bank Bldg., Houston
2, Texas

Consoli-'1

dated.
The

previous large demand sfor

International

The

Nickel

spilled

over

into the third quarter; the heavi¬
est buyers being Affiliated,
In¬

Mutual,
zard; with nary

M.I.T., and La¬
seller/ Heavily
was American Metal Climax,
including a 50,000-sliare closeout
by Lazard.

Machinery in Higher Gear

this

the best bought issue
Chicago Pneumatic Tool, of

which Investment Co. of America

Papers Picked Up

bought 25,000 shares newly.
A
heavy seller (50,800) of this issue
Incorporated

was

Union

buyers

Moderately Bought
Best bought

in this group was
which emerged from
the preceding quarter's disfavor.
Lazard
was
its
largest
single
buyer, although this was offset in

ity, and Chemical Fund. (Perhaps
contributing
to
the
continued
quarter-to-quarter
demand
for
this issue was the company's re¬
instatement

Goodyear,

de-activated,

some

Buying

was

star

Rubbers and Tires

were

Delaware Fund, Affiliated, Fidel¬

facilities.)

the

with 20,000 shares
bought by One William, and 10,000 shares
(newly) by Selected
American,
among
others.
Also
well-bought was St. Regis.

Aluminium, Ltd., cited above
popularity during the quar¬
ter, was by far the most heavily
bought issue in the metal cate¬

biggest

this group,

for its

Its

replaced In¬
performer

Bag-Camp

ternational

Investors.

Increased Interest in Metals

gory.

sold

group

was

Continued

limited to

page 27

salesmen:
isn't this the kind of

opportunity
you've always wanted?

is in a major revamping
operation, was added to its hold¬
ings by Lazard with a 20,000-share
purchase, by Fidelity
(11,100),
and Chemical Fund (9,000 newly).
company

★ Top commissions plus profit-sharing plan
★ No non-productive "paper work"
★ A "line" that brings you respect and multiple re-orders

Electronics

Moderately

and your

Bought

For the

Still

bought on balance, as in
previous quarter, were the
electronics and electrical equip¬
ments.
Best net buying occurred

few

the

Co.

toward

William

America

Sound

Street.

openings

KING

(30,000), the United Funds

Selected
American, and
Dominick.
Selling came in from
Affiliated Fund, American Busi¬
ness
Shares, Wellington, and a
few others. Selling still prevailed
I.T.T. by

the Axe group

(51,-

securities of

anv

kind

now

for

men

write King Merritt, President, for full details.

MERRITT & CO., INC.

An International

Lazard,

group,

several

interesting? Call

popular
Philips'
Lamp
Works was bought by Rowe Price

Lazard

All Sales Representatives of King Merritt & Company are entitled to
participate in an extensive program designed to help you find greater
security and peace of mind not only for yourself but for your families.
In addition to liberal profit-sharing features, the SAFE Program includes
a Service and Stability Plan (including loan privileges) based on services
you render to your clients, and Life and Major Medical Insurance that
increases in amount with your production.

Westinghouse.

and Massachu¬
setts
Investors
Growth,
among
others.
RCA was purchased by

Funds

who have the potential to
qualified to organize and
Fund experience is not
essential. You will get initial and continuing support from our Area
Manager in building up your business. We handle all routine paper work,
leaving you full time to sell. You will have behind you an international
organization, one of the most progressive and fastest-growing in the
Mutual Fund field today. You will be selling something nearly everybody
wants through a plan that's just now reaching the height of popularity.
have

Still

Growth,

Mutual

had not sold

become sales managers in a few years, men
direct the work of other salesmen. Mutual

dynamic issue was bought
by Lehman in the amount of 4,500
shares; but, on the other hand,
sold 19,500 by jointly-sponsored
One

help others improve their lot, too,

gratifying to sell than Mutual Funds. Our salesmen-

are more

of whom

for their clients.
We

Exemplifying an interesting
of portfolio "brain-trust¬
ing" is the "split, personalities"

evinced

family

who likes to live well and

befpre—are earning top commissions in their own communities. Through
our profit-sharing plan, they are building estates for themselves as well

led

Investment

man

things

some

This

TEXAS FUND MANAGEMENT

000 shares in West Rand

and LibbeyTri-Group
bought 30,000 shares of the latter.

aspect

in this group
Owens-Corning

Owens-Illinois,

Owens-Ford.

(12,000). In Westinghouse, among
buyers were Fidelity (14,200
newly), Dreyfus (15,000 newly),
and M.I.T.
(10,000).

Prospectuses available from

Fiberglas, of which Lehman made
a new acquisition of 20,000 shares.
Demand was also strong for Pitts¬
burgh Plate, with Tri the largest
buyer (22,000 newly); and also

the

Investment Dealer

net-buying

centered

was

Wil¬
Blue
Mu¬
Tri-

In the formerly popular gold
stocks, activity diminished during
the. last
quarter.
Kerr-Addison
was
bought by Affiliated;. Bly*
voors by Pioneer, and Free State
Geduld by Eaton & Howard-Stock
Fund.Selling came into Hqrtebeestfontein, of which Atomic "De¬
velopment, closed out its 48,500share
holding.
This fund also
liquidated its 220,300-share hold¬
ings in Luipaards Vlei, and its 33,-

Glass Issues Liked

7,100
shares,
American
European 5,000 and de Vegh 4,000
(newly). Heavily selling this issue
was Wellington (16,800).
Diversi¬
fied
Rayonier
was
bought
by
United Accumulative, AdamsAmerican
International,
among
others.
Olin
Mathieson,
which

and

your

seller.

apparently

Electric; with the pur¬
by Wellington (18,000),
partly
offset
by
sizable
eliminations by Lazard
(25,000)

TERM GROWTH OF CAPITAL AND INCOME.

necott

Wellington

14,500 shares; with no sellers. In
Union Carbide it was again the

chasers

SECURITIES SELECTED FOR POSSIBLE LONG-

Vegh,

was
bought by One
liam, Dividend Shares and
Ridge; but sold by Investors
tual,
Wellington and the

in General

A MUTUAL FUND INVESTING IN A LIST OF

★ Liberal insurance and endowment benefits for you

2(1)
1(1)
page

and

others. This issue was sold
by Dreyfus and Pine Street. Kenamong

bought issue was Wilson,
by the United Funds Group, Put¬
nam, Dreyfus and Dividend Shares!

Best

bought

8,300

Gulf States Utilities.

7,000
7,000
21,000
27,400
38,900

None

4(2)

Delaware Power &

3,600
17,800

42.000

None

Light

Union

lowed

2(1)

Commonwealth Edison
El Paso Electric

disposed

buyer1 of Allied was the
Tri-Group with 25,400 shares, fol¬

1(1)

34,000
17,600
10,000
3,000
10,000

None

Illuminating.

number

even

single

Electric and Gas

Cleveland Electric

900

was

2(1)

while

buying of this high priced blue
came from Fidelity (7,000),

chip;

14,600

Crown Zellerbach*.—.

5,000

2(1)
2

20,600
500

700

12,000
1,610

25,700

2(1)

est

4(2)

Warren (S. D.)

was

2(2)

None

______

group

2,235

Scott Paper
Union Bag-Camp Paper________

this

56,100

Central & South West

Favorite

Pont, with 12 buying manage-^
ments, and only two selling. Larg¬

None

Knickerbocker

This group picked up somewhat
since the preceding quarter.
In

6(3)

None

—

Fairly Good

Demand

Fibreboard Paper Products.____
International Paper.

___^____J

Trust.

2(2)

300

Most popular copper issue was
Anaconda, bought by the Bullock
group
(29,000
shares
newly),

vestors

Chemicals in

None

__—:__—

York

of Chase and Chemi¬

One William led the buyers.

cal,

3(1)
10(3)

None

Mead

Bank New

cases

16.400

Baltimore

6,700
8,000

__f^

Fibre

Chemical
In the

26,650
23,000

Carolina Power & Light
Central Louisiana Electric...

2,840

7(4)
2

3(1)
5(3)

3,100

1(1)

■'

1(1)

25,800

9,000

3(1)

None

15,000

Public Utilities

None

St. Regis Paper

but was still appreciable.
popular was First National
City of New York, which found
its largest buyer in One William
(12,000 as a new investment).
Also fairly well bought were Na¬
tional
Bank
of
Detroit,
Chase
Manhattan.. and
newly - merged

bit,

Most

8(2)
•

was

Interest in bank stocks dwindled

Container Corp. of America____
Federal Paper Board__________

Kimberly-Clark

None

■

Superior Oil (California)

3,500

38,800

40,400
56,100
18,580
40,500
13,500

Shell

None

Paper and Paper Products

3(1)

Chrysler. Fruehauf Trailer

None

172,000
113,486
52,000

appeared

Foods in Mild Demand

aluminum

Foil.

Banks Moderately Bought

5(2)

None

8,500

15,500

;
None

_______

Oil

2(2)

-3(2)
2

Service___

Shell

None

(Indiana)
(N.J.)

Phillips Petroleum
.Richfield Oil

400

None

26,700
1,400

Petroleum

Kerr-McGee

10,000
4200

2(1)
"

transaction

(15,000), and In¬
(10,400).

proportions
in
four
issues, namely,
Kaiser, Alcoa, Reynolds, and U. S.
other

United Fruit,
reflecting
earnings,
bought aggressively by Fidelity- dividend, and Cuban troubles, was
(48,500) and Investment Co: * of only sold—by Group Securities,
America (45,000).
National Securities Stock Series,
Shareholders' Trust, et al.

500

•

„

Mid-Continent

.Amerada

Trust.
in

None

Universal Oil Products..

50,000
-8,000

2(1)
2(1)

65,000

Texas Gulf Producing-.
Texas Natural Gasoline

4,000
5,800

_____

Skelly Oil____

4(1)

2(1.)

7(4)
3(1)

5,000

'9(2)
3

None

Madison (15,500)

were

(1,000). Soaring Amer¬
ican Motors was bought by three
funds, each of them initially—
namely, Knickerbocker, Oppenheimer,
and
General
Investors

None

17,000

—

.Royal Dutch Petroleum______•
Signal Oil & Gas

and Axe B

1,600

Pure Oil

11,100

vestment Co. of America

Ohio Oil

45.800

(7(2)

two sellers

5,869
None

;

^Continental Oil

27,300
-11,480

(2(1)

500), Delaware

None

161,200
/
17,000
11,600
5,600

Underwood
Oil

Continued from page 22

None

rNational Cash Register

Funds Curtail Stock Buying;
Move to Fixed- ■Income Issues

—:

___

11,000

_____

-Moore

6.GOO

;

Addressograph-Multigraph

31.875

1
2

No. of

moderate

No. of

(1913)

Organization Specializing in Mutual Funds

Headquarters
Several
SALES

Exceptional
men

and

85 Broad St., New

Openings for

MANAGERS

JgJjfSnlS
®
Raie8 organa

administer g^ Top
of 0}°o fU_Bharing.

iaation

roiwjonaandpron^t

Full
e or

York 4, N. Y.* Whitehall 4-2220

Offices in

In Canada

Principal Cities

Montreal—Victor 9-7708

Edmonton—ALberta 4-7537
King Merritt & Co., (Canada) Ltd., 201 Notre Dame St. W.,
Montreal 1, Quebec, Can.

King Merritt t Co., (Canada) Ltd., 521 Tegler BWg.,
Edmonton. Alberta. Can.

The Commercial and Financial Chronicle

(1914)

Continued from page 25

Mgts.

12,500
2,000

Northern States

21,000
8,000

13,300

Oklahoma

1,900

3(1)

Power

POSSIBILITIES

This Mutual Fund seeks
*

possible
growth of capital and income by investing in a diversified list of com¬
panies in many industries which
are

active i

Prospectus

request from your

upon

mail coupon

[

dealer,

...

Public Service of Indiana

F. EBERSTADT & CO. INC.,

6,000
10,000
None

Cincinnati

Name

4(2)

Address

■

New

1,625

None

None
None

Wisconsin Electric Power
Public

None

principal and current in¬

10.000

32,000
27,000

stocks
income and

for

1(1)

^H^2(l)
4

Equity

rUHd

investing pri¬

5,000

5,600
30,400
7,000

2(1)

None

Motorola——i.

Philadelphia 3, Pa.

1.
3

one

□ Wellington Fund

Wellington Equity Fund

NAM E

None

ADDRESS

1
CITY

None

46,900

....—_

Atchison, Topeka & Santa Fe
Chicago, Rock Island & Pacific..
Great Northern...
Illinois Central——————

7,500

1,500
5,900
21,100
7,300
3,800
2,000
36,700
33,700
14,900

N. Y., Chicago & St. Louis......

Norfolk & Western

———

Northern Pacific.—

—

Seaboard Air Line......

Southern Pacific
Southern Railway

Union Pacific..

None
200
None

41,100

26,000 V. Burlington Industries

3(1)

45,000

2(1)

American Viscose

Celanese

...

21,750

12,200

2(1)

4(,1)

31,000

Liggett & Myers Tobacco
Philip Morris.:

3(2)
2(2)

6(2)

40,000

Reynolds Tobacco

30,000
7,300

3(2)
2(1)

7,000'

2.(1)

None

9,900

Air Products

1(1)
1(1)
1(1)

70,800

4(3)

500

2,200

19,300
42,700

5,900

Alberta Gas Trunk Line

—

6,000

American Commerc'l Barge Line

3,300

American Export

1.000

'* 6,000
7,500

13,700

American Machine

5,250

American-Marietta

1(1)

5,000

American Optical

Kansas Citv Southern
Louisville

1(1)

3,000...

Nashville——

Virginian Railway

electronics

fund, inc.
dividend

of 8.5c per share from net

distribution

gain

income

from

and

net

cap¬

rein-

2, 1959.
Chester D.

Tripp

1959

President

Chicago 3, Illinois

Mineral—

-----

Grace

—

200

1(1)

18,000

—.——

12,300

Society

7,200

Hammond

Organ...

±.

600

Interprovincial

575

Lees

10,100

McGraw-Hill

„1

1,000

McKesson &

3,000

Minnesota Mining & Mfg.—_

2(2)

1,600

Mohasco

Pipe Line.—

(James)

None

5,375

1,000

100

1
1(1)

8,600

Industries

2(2)

None

Publishing.—....
Robbins

2(1)

21,500

Halliburton Oil Well Cementing*-^6,100

700

—

1(1)

None

1(1)

—

None

15,800

Time....

(W. R.)

Grolier

16,400

None

...

3,300

None

30,400

Newmont

—__

20,000

11,500

Newport News Shipbuilding——

2,500
None

None

7,000

Mining.

4(1)

31,200

Outboard

7(2)

14,123

Polaroid

22,100

Procter & Gamble

14,600

Remington Arms

'None

Marine

...

—

.....

1(1)
1

None

2(1)

4,100

Simmons

None

4,000

Time

3(1)

40,000

Unilever N. V.

2(1)

"12,900

None

; ,500

Wrigley (Wm.) Jr._.

1,000

1(1)

None

American

7,200

2(2)

Pullman

—

...

200

4,000

....

Allied Stores

3,005

Grand Union

13,500

Grant (W. T.)

15,000

Great A. &P

3,000

1(1)

4,000

100

4,000

5(2)

67,100

10,500
1,100

13,800

(J. C.)
Safeway Stores
Sears, Roebuck

None

American

None

9,000
None

None

20,000
None

Penney

None

1(1)

250
—

Montgomery Ward..

ACF-Wrigley

None

——

Mercantile Stores

None

6,000
2,000
1,000

1,000

Macy (R. H.)
Mangel Stores
May Department Stores.

None

Gimbel Bros

3(1)

2(1)

...

—

;

Stores

Associated Dry GoodsFederated Department Stores
First National Stores.—
Green (H. L.)._
Simpsons Ltd

Spiegel

55,000

2(2)

1(1)

None

Hertz

6,000

2(1)

None

1,800

...

35,6*00.

None

5,606
!

Colgate-Palmolive

None

5,500

9,000

None

Minerals & Chemicals of America

12,724

2(1)

None

None'

Perkin-Elmer

42,300

2(1)

None

Thiokol

9,500

3(1)

NOTE:

Purchases

and

Chemical.....

sales

(including short sales) by Oppenheimer Fund
the period from its inception on
April HP through September 30.

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

18,100

Affiliated
Fund
A

Common

Stock Investment Fund

objectives of
this
Fund
possible
long-term capital and
growth for its shareholder#.

Investment
are

2(1)

7,000

Armstrong Rubber

7,000

Firestone Tire & Rubber

9,300

6,300

2(1)

55,600

General Tire & Rubber

4(3)

13,200

Goodrich (B. F.)—

6(1)

9,300

8,000

Goodyear Tire & Rubber
U.

Rubber

—

are

None

Rubber and Tires

4(1)

1(1)

10,100

None

Crow ell-Collier Publishing

None

15,500

Arma

None

49,700

None

1
1

45,800

equivalent)

None

6,000
7,000

None

Stores...

Bosch

17,200

None

5,000

20,000

None

(50-guilder shs.

Alden's—

9,300
32,600

November

Foote

Glidden

1(1)

None

135 S. LaSalle Street,

5,000

General

1(1)

19,000

;

None

2(1)

Dividend
i

1(1)

„

None

Donnelley (R. R.)_.___—

Gillette

1
1

2,000

„

—

9,200

10,500

2
,

1,500

...

Nat'l Malleable & Steel Castings
New York Air Brake
L_.

No¬

date:

2(1)

None

per

30, 1959 to share¬

1,000

3,000

None

payable

holders of record November

1959.

—_...

30,100

None

15,500

Instrument

2(2)

—„—24,700

—...

1
None

American Brake Shoe...r__

of 62.56

both

Chemetron

5,500
None

ACF Industries

television-

None

23,200
11,000
21,300
15,800

2(1)

The Directors of

None

34,200

investment

19,900

Avco

Retail Trade

GAIN DISTRIBUTION

2(1)

30,400

2(1)
2

1(1)

AND YEAR-END CAPITAL

have declared

Cenco

8,000
None

2(1)

44™ CONSECUTIVE DIVIDEND

4,000
11,000

22,700

2(1)

——4,400

...

1(1)

2(1)

1,900

None

Foundry.

American Photocopy Equipment

1(1)

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

7.500

15,000

2,300

5,000

None

American Express

1,980

1(1)

2
•
1(1)

None

' 6,300

Lines

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

—

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

—

3(1)

2(1)

9(lf

10,100
20,500
9,700

;

...

Miscellaneous

v 7(2)

None

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

8,000

„

American Tobacco

2,900

6,500

Cluett, Peabody

5,000

2(1)

300

...

Tobacco

4(1)

4,075

—

None

10,500
63,300
31,500
8,100
6,700

1,500

2(1)

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

Chesapeake & Ohio
Chicago & North Western

1(1)

15,000
44,300

5(2)

2(2)

—

...

10,000

37,800

2(1)

69,000

27,000

1(1)

29,200

United Merchants & Mfrs.^.—

21,000

Denver & Rio Grande Western_

500

4,300

Cleveland-Cliffs Iron-—...

5(1)

Baltimore & Ohio

14,800

6,000

None

November 2,

Youngstown Sheet & Tube

3(2)
3(1)
2

Railroad Equipment

•

1(1)

54,300

107,500
43,600

—

Twentieth Century-Fox.

: "*L-

Wcllingtoii Company, Inc.

*1,000

—.—

950

3,000

vestment

.-JJ6,000

Wheeling Steel———.—

7,300
None

None

—

Textile and Rayon

Railroads

investment dealer for

vember

1(1)
3

None

Industrial Rayon
(J. P.)

17,000
3,809

share,

None

Collins & Aikman

Magnavox—„
Stanley Warner
United Artists
Paramount Pictures

future income,

ital

Republic Steel
Sharon Steel———
U. S. Steel

Iron

Stevens

12,200

None

6(1)

□

22,700
38,000
28,500
38,100
10,000

40,000
National Steel—None

Interlake

1,500
3,400

American Broadcast.-Paramount
Columbia Broadcasting

None

stocks
selected for possible longterm growth of capital and

Check

Jones & Laughlin Steel——.

9(2)

Telephone

GenT Telephone & Electronics22

5,500
11,600

common

prospectus or write to

—

1
2(1)
2
None

Radio, Television and Movies

4(2)

Ask your

Utilities

American Tel. & Tel

6,500

common

profit possibilities.

marily in

None.

6(2)

3,000

6,100

None

16.000

98,100
500

Steel

Inland

2(1)

1,000

——

Carpenter Steel....

6,000
17,500

None

7,100-

49,600

San Diego

None

Steel.-i._-_—

investing

Gas

Steel

Wood

2(1)

6,600

Public Service Electric & Gas—
Gas & Electric
Union Electric (Mo.)
Washington Water Power

bonds and preferred stocks

selected

1(1)
2

16,400
13,547

...

None

•

3,000

Pacific Gas & Electric_________
Pacific Lighting

None '

selected for conservation of

and in

York State Electric &

36,800
113,900

1,300

Electric—___

Niagara Mohawk Power

come

Gas

7.900

None

fund

Louisville

Alan

-Allegheny Ludlum
Armco Steel...
Bethlehem Steel

2(1)

—

5,600
2,000
r

„

31,800
Electric Power
25,500
& Foreign Power— 108,600
Gas & Electric
32,200
& So. Ohio Electric—
12,200

a balanced

.— —

None

—

Florida Power
Florida Power & Light——
Houston Lighting & Power—__

700

10,500
20,000
None
19,000
36,540

Consumers Power-——-.——__

20,200
18,600
1,600

Columbus

4,000
None

2(1)

American

None
None

31,100
2,000

——

American

65 Broadway, New York 6, N. Y., Dept. C
■■

6,700
25,500

None

Manager and Distributor of Chemical

Fund

Co.
Electric..
Texas Utilities
Virginia Electric & Power.,
West Penn Electric
Southern

Tampa

None

12,000

.——

38,800

6,100

Public Service of

5(1) '

3,500

1
None
1(1)
1

Rochester Gas & Electric....—_

below to:

2,(1)

None

Peoples Gas Light & Coke—5,700
Potomac Electric --.——s
None
Public Service of Colorado
4,664

Southern California Edison....

5(1 )>

2
_1(1)

—

8,600

Mgts.

Steel and lion

6(1)

5,800

1.2

■

31,200
.1,300
None

No. of

23,500

3(1)

chemical science.

Mgts.

No. of

None

5(1)
6(2)

No. of

Sold——

No. of

Mgts.

None

Electric.......

New Hampshire

GROWTH

No. of
Shares

—None

A__

Gfks'&

Thursday, November 5, 1959

No. of

None

Ohio Edison

15,400
19,900
1,000
50,000

2(1)

Seeking Long Term

England Electric System..
Northern Indiana Public Service

New

1
2

2(1)

For Investors

„

' Shares

Chemical Fund

——Sold-

No. of

—Bought—

—Bought—
No. of

income

None

5,600

10,580

2,000

Prospectus

upon

request

Lord, Abbett & Co.
New York

—

Chicago

Atlanta

—

Los Angeles

for

Volume

190

Number

5896

The Commercial and Financial Chronicle

tual,

Funds Curtail
i.

from

part by selling coming from Well¬

ington and the Scudder Group.

Although the

Most

sabotaging earning power,
industry attracted con¬
siderable although reduced fund
buying. Best interest was evinced
U,

Steel

and

Big Steel,
Mutual,

Investors

sold

also sold

Wellington,

American

vorite,

others.

among

Merck

by Eaton & Howard
Axe

and
-

but

Funds
of

with

and

49,000

Investment

shares
Co.

this

issue's

sole

Jj!

GROUPS

controversial

industry at¬
tracted accelerated fund buying.
There was complete
absence of
sellers in American, Philip Mor¬
ris, and Reynolds.
Of the star
attraction, Reynolds, Dreyfus

and

building

Schering,
50,000
Parke, Davis,
12,000 shares of Mead John¬
of

Continued Pessimism

enjoyed

group

Johns-Manville

Fidelity;

was

Lead,

and

Affiliated.

new

other

Investment

Finance.

Heavy selling of the oils con¬
tinued;
such
fund
operations
functioning either as cause or

Growth; and closed-out by Invest¬

bought 16,000 shares, and the Bul¬

effect of their

ment

lock

stock

newly.

International

cluded

dend

Har¬

Texaco

cyclical stock, were Wellington
M.I.T., among others. Taking
of

Deere

its

accrued

Lazard

was

one-sixth

were

lected American.

other

hand,

the

Lehman,

made

der

Se¬

the

15,000-

new

share acquisition.

the

Group

seller

Fundamental-Di¬

and

Shell, likewise
also

the

Scud¬

Blue

Ridge; of
particularly weak Amerada, the
Tri-Group, Fidelity, and Funda-

shares.

M.I.T. and

was

Largest

Fundamental

extent

its 60,000

Other sellers

profits

Madison, Wellington, Divi¬
Loomis-Sayles, and

versified Group; of

and

some

were

Shares,

Adams-AIC.

vester, apparently still considered
a

issues

and

Agricultural Equipments Sold
of

single

Most fre¬

Gulf,
Texaco,
Shell,
Amerada,
Phillips. Sellers of Gulf in¬

GROUPS IN DISFAVOR

Sellers

sold

quently

market behavior.

Most

tion

Eclipse

changes.

the

was

seems

facing

revolu¬

Heaviest

Tri-Group,

with

bought by Group Se¬
curities
(15,000)
and by M.I.T.
(25,000).
Sellers
of
this
issue

included

70,800

Madison
and

Also in strong disfavor

were

case

and

latter

the
tion

General

despite
Boeing

moves.

its

Dynamics,
diversifica¬

was

seller

(27.-

000).

Common,
and

American

the

United

diverse

road group

was

Sears

and

former

lington,

Prospectus and Literature
from

Southern Pacific,

INVESTORS PUNNING CORP.
of America
60

liquidated

European,
Group.
was
bought

State

Street

(15,000).

Ward,

Street

17, N. Y.

NATIONAL DISTRIBUTOR

Investors

Capital. In the

M.I.T.

made

investment of 45,000

Incorporated

funds-active

sellers

17,600.

en¬

seller

No
of

other

hand,

these

and
,

shares, while

appeared
On

buyers

INC.

the

only

were

Continued

FUND

bought

issues.

there
no

;

PIONEER

case

initial

Investors

either

tirely neglected.

ACF-

on page

Prospectus

MUTUAL SECURITIES FUND

OF BOSTON

from

your

Standard

DISTRIBUTORS

Indiana

the

from

KELLER BROTHERS
FUND RESEARCH AND

CJ
Prospectus

upon request

investment dealer,

GENERAL

In the
On Request

ZERO

COURT

TELEPHONE

CO., INC.
BOSTON

STREET

RICHMOND

2-2530

MANAGEMENT, INC.

9, MASS.

TELETYPE BS

WALL STREET

630

NEW YORK 5, N. Y.

most conspicuous seller was Well¬

ington Fund which disposed of all
of

its

enormous

162,000-share

Putnam,

tinental, bought by Investors Mu¬

General

42nd

bought by Wel¬

Institutional

Maryland! Casualty
heavily by the Eaton & Howard
group and also by Broad Street;
sold
by
Putnam
(in a 20,000share elimination).
The usually

(45,000),
(15,686), Lazard (20,000)

block.

Dreyfus;

Eost

New York

Montgomery Ward.

was

General

and

Scudder

was

radio-TV-movie

Mutual, Texas, Eaton & Howard,

Funds

Travelers

TRUST

Growth

The

group,

included

the

was

America.

They

Investors

INVESTORS

In the also-mixed retail group,
heaviest buying was concentrated

in
which we classify Transamerica,
that issue found 5 buyers, with no
sellers.

GENERAL

15,000 shares to their

M.I.T., Investment
America,
and
Lazard,
only by Dreyfus,
A heavily sold rail was Chicago
& Northwestern, the sellers in¬
cluding Incorporated Investors in
a
closeout of 59,100 shares.

Investors

insurance

the

quar¬

while being sold

pros¬

Fundamental

by Tri, Investment Co. of America,
and-

June

barely exceeded that of the sellers.

Jersey

shares, followed by Fidelity

Boeing

Co.

Broad St.

For Income

more, and

sector CBS

Co.

bought by State Street

Massachusetts

manager.

in the firm's

mental; of Phillips, Investment
Co. of America, Eaton & Howard
Balanced, Selected American, and
Oils of N. J. and Indiana, the
number of buying managements

heavily sold aircraft issue

tionary

located

New York office at 90

Carriers & General. In the Stand¬

United, whose industry posi¬

was

mutual funds

will

ard

Aircrafts in

bonds

the

which attracted

latter, 'Lazard
sold all its 15,000 shares. Progres¬
sive
Great
Western
Financial,
regarded as a real growth situa¬
tion and in which a rights-offering
was

bought by M.I.T.,
the United Funds Group, Oppenheimer, and Broad Street.
Best bought issue in the rail¬

the

convertible

once

added

Pacific

and

Haight

Cor¬

appointed William J.

holdings.

Asso¬

13.000

each

commitment of

appeared,

from

Massachusetts

On the other hand,

sellers

Webster Securities

poration

Southern
California Edison. Of ever-rising
Southern, Investors Mutual and

Finance," in which Scudder Com¬
made

was

Stone

Mutual

Southern

In the finance companies
group,
interest was shown in Household

and

sellers
Group
and

Axe

Stone Webster

Among
the
more
widely,
bought issues were Tampa Elec¬
tric, Virginia Electric & Power,

hand, Fidelity doubled as a seller
of National Gypsum, and National
Investors
was
biggest seller of
U. S. Plywood.

only

Wellington;

the

accelerated

National
the

pect,

Group

and

Investors

were

Haight Mutual
Fund Mgr. for

ter.

Gypsum,
and
U.
S.
Plywood.
Largest buyer of Johns-Manville

Over Oils

worse-than-average

Mutual

International
that issue's

Burroughs, by In¬
(73,800), Welling¬
ton
(52,800),
Scudder
(18,800),
all being complete eliminations.
The
utilities, particularly in¬
teresting
now
because
of
the
money-rate stringency, were
highly mixed, with selling slightly

National Lead, offset by sell¬
of National Gypsum, U. S.

ing

ciates

buyers

vestors

buyer.

SiS

buying

000

(newly)

largest

including

were

MEETING MIXED

20,000 shares.

son.

Bought

The

good

classify
Machines,

Business

REACTION

mon

still

Development,
Scudder
Common, and Affiliated. Lehman selling

Drug stock buyers included One
William as the purchaser of 15,-

and

This

Group

Pfizer,

Fund.

Tobaccos Well

leading butt of

ratories.

64,000-share closeout by Welling¬
ton

the

was

America with 15,000 Abbott Labo¬

bought
Stock Fund
was

encountered

Sellers also included United

zard.

Co. of America,
Celanese was

J. P. Stevens

i •

profit-taking
managements,
in¬
cluding Investment Co. of Amer¬
ica, Putnam, Scudder, Delaware,
and Dreyfus.
A new investment
of 25,000 shares was made by La¬

bought
by
the
United
Funds
Group (39,000 shares newly) and
Dreyfus.

Is¬

Putnam. The target of very heavy

its

American,

Atomic
was

Gas.

balance included

Natural Gas, Northern
Gas, and United Gas.
office equipments, in which

balance.

profit-takers

disliked

Natural

Also in

Drugs Moderately Lightened

which

Viscose,' again a fa¬
by Delaware

Investment

and

bought

was

Pan

was

Continued Interest in the

Lehman

and

Dreyfus sold all of its 60,000 shares, while Investors Mutual
reduced its holdings by 34,200 and
Fidelity by 25,500 shares.

65,000 shares of Republic.

Cyclical Textiles

shares,

disfavor

Funds Group and U. S. & Foreign.
On the other hand, 41,000 shares
were

sold

was

the

Arkansas-Louisiana

sues

American

in the

buyers.
Sellers included Lehman, Madi¬
son, Wellington, Investment Co. of
America, among others. General
Telephone
Electronics,
newly

which

United

the

Telephone,

100,000

Repub¬

followed

heavily sold issue in this

entire 26,000-share block.

lic. Dreyfus was the largest single

buyer

American

and

popular

Tennessee Gas Transmission

were

diversifying,

group

steel

Natural Gas issues most

Aberdeen

Telephone Issues Sold

Among

was American Airlines, of
which One William sold all of its

was

the

Descending

Popularity"

strike

protracted

stors.

Aiflines'

Strong, Buving of the Steels
,

Fund,

previous quarter, found

■

Dynamics chiefly by Incorporated

page

Chemical

and Price.

Move to Fixed-Income Issues
Continued

(1915)

Clearly in favor

was

Con¬

CONSIDER...

■'Mm
* :

EATON & HOWARD
&€fJi

A non-dividend

□
□

United Accumulative Fund
United

Continental

Fund

□ United Income Fund

company,
term

paying diversified open-end investment

redeemable

at net asset

value, seeking long-

<0(

A 80d '

in Canadian

companies and

50% of its total assets

up to

50% in securities of

companies outside of Canada and the United States.
Traded OverthcCounter

through Investment Dealers

SToc«m

'nvesting

„

Carl M. Loeb, Rhoades & Co.

request from

WADDELL & REED, INC.
Principal Underwriters
40

Wall

Street

New York

5, N.Y.

Members iNlew

Tor\ Stoc\ Exchange

Wall Street

New York

20 West 9th Street

Kansas

City 5, Mo.

5, N. Y.

sfo'U6* c>
er°»thS0J°rP0S
m°»
s'bie
Prin
"icon, e.

Offices and Correspondents in 100 Cities

and

Prospectuses available from
your Investment Dealer or
EATON & HOWARD,

Branch

c'Pai

Prospectus

"nOSS^Vl

appreciation through investments outside the

United States, with not less than

□ United Science Fund

\^eb,

Ve"ews

Incorporated

24 Federal St., Boston 10, Mass.

The Commercial and Financial Chronicle

(1916)
-

Balance Between Cash and Investments of 86 Investment Companies
End of Quarterly

Investment Bonds and
Net Cash &

Percent of Net Assets

End of

American Business Shares.-

—-

56.8

55.9

1,115:

1,538

1,115

58.3

52.4

3,183

4,958

2,307

25.4

74.7

73.9

6.8

§25.0

28.2

§74.0

65.0

lt>9

531

4,073

22.6

34.2

19.7

22.5

57.8

43.3

671

504

7,005

2.7

3.4

>'30.6

>33.2

3:66.7

£63.4

11,973

6,176
10,013

1.5

1,357
4,985

4.0

ip.8

9.5

87.7

86.5

6.0

13,335

10.211

6.8

.23.3

24.9

70.7

68.3

1.2

6,158

2.9

26.1

25.7

72.7

71.4

4.1

3,307

4.0

2,182

287

273

5,356
3,987

3,066

1,221

2,791

1,357
4,175
6,973
4,469

23.4

24.6

2,087

72.5

71.4

473

381

24,282
1,439

28,702

12.1

14.6

21.6

20.4

66.3

65.0

8,012

1,917

16.8

5,302

21,0

22.1

21.5

61.1

57.5

484

360

435

548

1,425
22,576

16.9

78.9

76.3

435

548

1,513
26,421

10.6

83.9

83.2

1.8

1,893

Tf32.8

1133.7

£65.4

£64.0

725

4.6

3,710
99,246

1,855

2.3

77,573

468

7.0

28,947

15.0

15.2

80.4

77.8

731

493

340

££700
5,137
1,489

4,124

1,006

316

6.8

2.3

7.3

5.4

85.9

92.3

23.3

1,094

25.3

17.6

17.5

59.1

57.2

4.7

4,920

2,620

38,741
3,360

6.2

26.2

27.6

69.1

66.2

619

1,211

2.3

4.5

13.6

12.6

84.1

82.8

1,390
2,212
2,395
8,217
5,739
4,345
7,238

1,108
1,830
2,600
11,445
9,058
6,682
8,313

2,452
1,425
4,624

672

1.5

8.4

13.2

89.8

85.3

5.6

35.7

36.5

57.7

57.9

1,609

831

15.6

17.3

22.5

61.8

60.2

474

352

None

4.2

5.9

23.7

££50

25.1

72.1

69.0

8,749

7,029

2,775
2,380

2,892

2,765

3,762

26.8

5,424

25.6

66.2

62.9

6,085

5,304

None

24.6

22.8

2,142

62.5

58.2

d 941

719

639

18.4

2,820

20.8

20.0

21.0

61.6

58.2

844

674

6.8

1,164

342

904

10.3

2.9

3.2

90.3

86.5

885

2,953

3.6

3.4

6.7

7.5

89.7

89.1

110,654

161,685

11.6

16.9

24.4

25.0

64.0

58.1

3.4

4,595
28,802

384

490

1,264
4,527
51,313

772

3,267

4.2

43.6

1,194
4,527
46,455

42.9

53.0

52.9

1,333

1,060

406

303

256,355

338,634

7.7

9.7

21.5

22.4

70.8

67.8

232,112

215,282

97,628

134,911

None

—

Funds

994

1.8

6.6

11.5

—

Bal.

4,185
1,489

1,009
1,425
1,390

994

19.0

Open-End

126

313

7.0

Stein Roe & Farnham Balanced Fund

Sub-Total

1,094

12.9

Shareholders' Trust of Boston..

———

5,194

9.6

—....

Wellington Fund

178

2,763

17.0

England Fund
(George) Fund
Scudder, Stevens & Clark Fund——

Whitehall Fund

182

6.2

New

Value Line Income Fund

6.8

—...

Value Line Fund

11,845
"

4.1

National Securities—Income

Putnam

1,635

6.5

17,424

1,538
4,641
7,050

6,830

732

Mutual Investment Fund.......

Nation-Wide Securities

7,330

9,506

1,503
33,092

—...

....

•:

446

Fund

Massachusetts Life Fund

Sales**

34.0

Fund

Loomis-Sayles Mutual Fund

Total

Purchases??

22.1

Group Securities—Fully Admin. Fund
-

Common Stocks

Sales**

32.0

Institutional Foundation Fund—

Purchases??

0.7

534

Investors Trust

Knickerbocker

31.9

Sept.

Total

13.6

2,719
5,616
2,381
9,157

Balanced Fund——

Johnston Mutual

31.2

Of this: Portfolio

Total

3.2

Investment Fund.....—

Investors Mutual

12.2

June

Total

9.7

Dodge & Cox Fund-..—.
General

Sept.

End of

779

Street Investing——

Eaton & Howard

June

-(In Thovsands of Dollars)Portfolio Securities

-Other than Governments

3,1/8
6,445

Boston Fund

Diversified

Grade Bonds & Pfds.
Percent of Net Assets

Sept.

Com. Stocks and Lower

Preferred Stocks*

Percent of Net Assets

4,168

Investment--—-

Companies During
July-September, 1959

3,202
4,853

——

Axe-Houghton Stock Fund

Investment

12.0

Axe-Hougiiton Fund B___ _—j—...
Axe Science & Electronics

End of———

June

Sept.

June

Axe-Houghton Fund A

Governments^

Thousands of Dollars

Open-End Balanced Funds:

Commonwealth

Thursday, November 5, 1959

Security Transactions by the 86

Periods June and September, 1959

Net Cash & Governments?

Broad

...

•

3,526
13,004

Open-End Stock Funds:
Aberdeen Fund

235

325

1.6

2.2

None

98.4

97.8

569

435

569

435

55,913

65,047

9.8

11.6

0.4

89.8

88.0

3,657
10,290
3,777
3,276

8.6

11.25

0.6

90.8

88.15

20.4

19.6

0.2

79.4

80.2

1.6

0.8

1.6

97.2

96.8

6.0

4.0

4.1

4.5

89.9

91.5

11,990
1,953
3,191
8,606
14,128

11,594
2,359

2.0

11,990
3,832
3,191
8,810

11,594

2,871

—

Affiliated Fund

Blue Ridge Mutual Fund.....—
Bullock Fund

•

Fund

Delaware

Fund

______

....

...

4,946

—______

Vegh Mutual Fund

Dividend

10,736
5,109

—(

Chemical

—

...

Eaton & Howard Stock Fund.

Energy Fund

392

109

1.9

0.5

2.4

3.2

95.7

96.3

39,986
9,032

39,520

14.6

14.8

None

85.4

85.2

....

—

Fundamental Investors

—

_—

None

86.1

82.5

17.585

None

84.0

84.3

6,215

0.9

3,153

1.0

None

99.1

99.0

4,770
6,052

9,897

1.2

2.6

2.2

2.0

96.6

95.4

9,290

1.0

1.6

0.1

98.9

98.3

201

1.0

1,100
12,879
13,000

0.4

None

12,667
5,764

None

99.0

99.6

395

371

395

371

1,050

1,285

1.6

2.0

None

98.4

98.0

1,769
10,792
2,918
18,021

8.7

22.3

4,171

5.1

2.1

4,171

86.2

75.6

600

2.9

2,260
1,397

3.4

1.0

2,260
1,286

96.2

95.6

6.3

8,452

6.5

9,759

8,452

None

93.7

93.5

694

283

694

86.6

18.668

§6.8~~^~-H$2 5

§92 9

3,553

Investment Co. of America._J——

18,544

0.9

None,

12.1

1.3

•

\
...

§6-3

....

Lazard Fund

*___

Massachusetts Investors Trust..
Massachusetts Investors Growth Stock

14,270

13,482

9.7

9.6

None

90.3

90.4

29,103

23,290

1.9

1.5

None

98.1

93.5

17,553

20,693

6.2

7.1

None

93.8

Stock

One William Street

Pine Street Fund

N.A.

N.A:

a4,349

25,748
19,660

4,349
1,894

92.9

C17.9

cl8.9

63.1

58.8

371

331

302

247

3.6

0.6

0.5

96.7

95.9

5.421

2.8

9,357

3,643

2,661

1.4

None

9,357

None

97.2

98.6

7,495

16.723

7.2

2,269

21,016

6.0

0.7

7,495

0.9

92.1

93.1

961

5.3

27,307

8.2

22,405

24,609

1,438

7.8

5.3

86.9

3,643
2,269
22,405

86.4

4,395

18.4

1,640

4,760

21.2

1,460

2.4

2.2

76.4

79.4

2,703

217

1,161

2.2

3.8

1,121
2,703

217

668

None

97.8

96.2

a3,284

5.1

3,284

4,913

3.7

2,404

3,716

0.4

2,404

1.5

95.9

93.4

7.315

191

2.1

5.6

6,382

6,200

6,381

3.3

3.0

94.6

91.4

199

192

199

192

12,496

11.613

6.0

5.8

1.3

1.2

92.7

93.0

9.071

433

531

4.6

8,029

5.2

None

1.2

93.6

1,179

££8,830
1,037

££7,710

95.4

227

703

227

662

20,421

7,359
1,259

18,229
2,175

6,084

2,475

4,478

.5,419

4,478

4,806

_______

Income Fund

United Science Fund

«.

545

913

1.4

2.5

0.4

98.2

97.1

9,446

15,143

3.2

5.0

7.6

7.9

89.2

87.1

1,932
7,243

1,681

4.5

4.0

0.5

1.1

95.0

94.9

13,845

3.1

6.0

3.4

93.5

90.6

3,705

9,068

3.6

8.8

1.6

1.2

94.8

90.0

8,336

Accumulative Fund_____

United Continental Fund

,3,050

283

14,561
--1,277

22.3

Stein Roe & Farnham Stock Fund

United

17,891
•

■

2.7

Selected American Shares

United

N.A.

1.277

19.0

Scudder, Stevens & Clark—Com. Stk.

Texas Fund

14,561
<

9,759
_

960

Price (T. Rowe) Growth Stock

State Street Investment—

600

4,132

...

Sovereign Investors

13,000

926

...

None

12,719

3,082

Missiles— Jets & Automation

—

1,120

8,550
1,153
1,120
12,169
5,764.

a25,748
al9,660

National Investors

National Securities

6.459

15.7

9,355
2,855

Investment Trust of Boston

8,948
3,554

17.5

Incorporated Investors
Institutional Investors Mutual Fund§§
—

3,589
7,990
17,585
5,226
1,100

16.0

679

...

3,554

7,990

1,742

13.9

—_

Guardian Mutual Fund

3,815

845

13,113

General

Capital Corp.______________
Group Securities — Com. Stock Fund,

1,742
9,965

23,861

—

Fidelity Fund

845

14.629

6,459
8,550

24,627

—

2,660

al,894

822

1,044

895

279

8.9

2.2

None

88.9

96.8

2,595

4,582
2,408

8,211

*3.2

1,097

892

11.8

9.8

2,277

1,905

None

2.2

88.2

88.0

279

None

143

393

0.9

2.6

3.2

3.1

95.9

94.3

470

588

470

588

Sub-Total Open-End Stock Funds

336,906

365,493

6.3

6.6

1.9

2.1

91.8

91.4

296,568

174,586

283,592

Total Open-End Funds

168,436

593,261

704,127

6.7

8.0

10.2

10.6

83.0

81.4

"528,680

389,868

~33X220

"301,347

Value Line Special Situations.
Wall

Street

____

Investing_____

Wisconsin Fund

___

•

4.238

Closed-End Companies:
Adams

Express

4.679

5,051

4.6

5.2

0.6

0.7

94.8

94.1

973

3.614

1,273

857

21.6

1,273

19.3

0.5

None

77.9

80.7

1,965

1,982

2,082

4.0

5.1

0.9

1,965

1.1

95.1

1,884

93.8

538

810

464

810

1,144
2,798

6.8

5.9

6.2

5.4

87.0

88.6

1,055

786

Fundfllf

4,153
1,715
1,332
1,972

7.7

2.8

1,055

591

5.2

2.9

92.0

89.4

General American Investors

1,574

6,149

6,810

8.8

10.6

1.5

1.6

87.8

114

5,246

1,915
1,101

1,075

89.7

11.4

11.9

0.7

0.5

87.9

87.6

1,968

1,861

1.968

6.1

6.0

0.4

93.5

££1,800

93.6

9,128

7,829

3.9

8.0

1.7

1.9

££9,028

94.4

7,829

90.1

16,476

15,614

3,060

5,425
17,689
10,681
2,491

1,915
1,101

4.7

4.1

2.2

9,045

2.3

93.1

93.6

13,821

771

761

771

702

§7.9

§8.8

§72.4

§68.6

974

9.777

2.5

1,130

10,394

2.4

9.2

9.5

££960

88.3

88.1

££878
14,814

—

_____

American European Securities
American International
Carriers

Dominick

General____

General Public Service

Lehman

Corp.

Madison

Fund

18,938
5,591

Niagara Share
Overseas

Securities
—

Tri-Continental
U. S. & Foreign Securities.
Total
Grand

Closed-End

Companies

Total

?Inc-Iuding corporate short-term notes where
investment
ferred
RB for

company;

also

other

assets.

—

18,120

15,306

17,286

11,633

13.9

10.0

None

86.1

90.0

5,000

None

15,899
5,000

80,515

79,195

7.3

7.4

2.7

88.6

88.1

58,656

50,368

48,201

673,776

783,322

7.0

8.0

9.2

9.5

included by

'-Investment

—

bonds

reporting

irrespective

and

cent

pre¬

stocks:

Moody's Aaa through Ba for bonds; Fitch's AAA through
preferrcds (or approximate equivalents). flBonds and preferreds

gross

^•Estimated.

IfflFormerly

quality

classification.
ftCost

assets.

§§Owned

National

Shares,

purchases.

savings
a

§Common stocks
banks,

Exclusive

New

corporate

83.8

only,

**Proceeds
etc.
of

gin

82.5

per¬

notes,

from

sales.

galled

York

State.

587,336

convertible

(or

440,236
with

429,421

warrants),

Including

bonds.

short-term

S U M M A Pv Y
CHANGES

CASH

POSITION

SEPTEMBER 30,

1959

86
vs.

INVESTMENT

Plus

OPEN-END

COMPANIES:

CLOSED-END

Balanced

Funds.

COMPANIES

Minus

AVERAGE

ALLOCATION

DEFENSIVE

Approx. Unchanged

COMPANIES

SECURITIES,

Net

Defensive securites

Risk securities (common stocks plus

ASSETS

AND

RISK

CASH

AND

EQUIVALENT

SECURITIES
June 30,1959

Total

22
6

Totals

COMPANIES

JUNE 30, 1959

cash, etc. and Governments

Tolals

(investment

Sept. 30, 1959

7;o°0
bonds

and

preferreds)..,...

lower grade bonds and preferreds)

9.2

83.8.'-

100.0% "

82.5
100.0%

None

47,418
348,765
matured

Volume

190

Number

5896

The Commercial and Financial Chronicle

(1917): m
Continued from page 27

Wrigley,

American

troubled H.

compared
with
message
rates
ranging between $11 and $37. The

PUBLIC UTILITY

Stores,

jL. Green, and Spiegel.

ile

ATTITUDE TOWARD

SECURITIES

MISCELLANEOUS ISSUES
Interest

Polaroid

OWEN

ELY

was

strongly revived in the last quar¬
ter, with Chemical Fund, the larg¬
est

buyer,
joined
by
(again), and de Vegh.
Outboard

•

Marine

had

and

Aberdeen.

Well-acting Unilever N. V. was
liberally bought by Putnam, In¬
vestment
Co.
of
America,
the
United Funds Group, and Eaton
& Howard Stock.

Gyrating Thiokol Chemical, on
other hand,
was
only sold,
namely by the Axe Group, Na¬
tional Aviation, and'Missiles-Jet
the

Automation.

FOREIGN ISSUES
Interest

was

maintained in for¬

eign issues, in light of the re¬
ported
prosperity
of
Europe's
industrialized economies..
Electric

Western

was

bought

by Investment Trust of
Badische
Anilin
and
Schneider
Creuzot,
by
Oppenheimer;
Beecham
Group,
by
Value
Line
Special
Situations;
Boston;

Bowater

by Dreyfus;
Deutsche
Bank, Dresdner Bank
and
Simca,
by
Oppenheimer;
Farben
Bayer,
by
Investment
Trust of Boston; St. Gobain, by
Putnam; John Summers, Steel Co.
of Wales, and United Steel Cos.
Ltd., by Incorporated Investors;
K.L.M., by Madison; and Montecatini, by United Science. On the
other hand, de Beers was sold by
Value

Paper,

Line

Income

Fund.

Union

was

incorporated

York

1851

System

has

now

"New

1943.

The -company

virtual

individ¬

for each investor.

however,

enue

written

also

messages

have

to compete with Bell's long
distance telephone network.
The company

has gone through
number of phases in its long his¬
The records

tory.

its

are

appears to

have been

"even

your

Investment Dealer

MASSACHUSETTS LIFE FUND

Stati Street, Boston

Masi.

revenues

has

but

during

World

payout

increased

each

year,

reaching $7.75 in 1918.
$7 was
paid in the next seven years and
$8 in the next six.

depression,

earnings
diminished
sharply and dividends were either
omitted

paid in small amounts

1932-1952.

Moderate

followed,

the

im¬

well

services

ous

million to $18

and

increase

competition

with

telephone
Also,/' the merger with
Postal
Telegraph resulted in a
considerable duplication of facil¬
talks.

which

could only be elimi¬
gradually because of labor

.mechanization and gradual reduc¬
tion in offices, the number of em¬

ployees had dropped from 51,000
to about 35,000.
the

meantime, however the
average hourly wage
(excluding
messengers)
had
jumped
from
$1.38 to $2.24, so that the propor¬
of.

labor

costs

had

dropped
Union con¬

only to 63% of

gross.

tracts

for renewal

came

every

1959

thus been
the

real "growth" segment

company's

business.

The

A Diversified

Mutual Fund

NATIONAL INVESTORS
CORPORATION
A Growth Stock Mutual Fund

WHITEHALL FUND, INC.
A Balanced Mutual Fund
•

vide

two

risks in
Booklet

prospectus;) ke® from

BROAD
your

or0REYFUS Corp.,50B'way..New

York4

STREET

SALES

CORPORATION

dealer
65

Broadway

New York

6, N. Y.

9804

Wilshire

•

around

dropped

in
last

$2.12

$1.89

20c

lower

because

the

earnings.

nationwide

new

sign

which

are

expected

add

large amounts to the com¬
pany's leased wire revenues, 'the
systems "are scheduled for full op¬
in

eration

the

record

Nov.

permits the purchase of

one

largest and most ad¬
digital data system for

certain

new

eight held.

Unsubscribed shares will
fered

world's

vanced

share for each

The first will be

1961.

stock

mon

employees,

former

of¬

officers

and

employees; shares
up will be pur¬

control of Air Force personnel and

not

materiel; it will have a daily ca¬
pacity of 7 million punched cards

chased by an underwriting group
headed by Blyth & Co., Inc.

is an operating
supplying electric,
power and natural gas service in
San Diego County and a portion
of Orange County, Calif. At Aug.
31, 1959 the company has 308,000
customers for electricity and 248,-

...

broadband data transmis¬

serve

sion

requirements of the Air Force.

the system will be of such
magnitude that 12,000 new circuits

Since

could

000

operated simultaneously
it

pany

vastly in¬
crease
Western Union's capacity
for
future
expansion of leased
wire, data transmission, and fac¬

ington,

new

New

ings

York,

Chicago,

San

the FCC, this service
cheaper (and probably
reliable)
than
telegrams.

Extension

other

cities

cir¬

cuits will depend on public use of
the new service, it was indicated.
A

message

than
x

picture

(other

photos) covering a space of
4 inches could be sent from

Washington to San Francisco for
$4,

plus
A

from

-■

purpose.

sections and
individually, to be put to¬
gether at the other end like a jig¬
A

message

words

typewritten

paper

would

cost

•

directors

increased

cents

share.

less

600
sheet of
than $3
of

Gas

Electric

the

Aug. 31, 1959

basis.

same

series;

and

really too busy t*

health checkup once

year? Or do you put it off

because you're
doctor might

thing wrong?

4,500,000

afraid your
find some¬
...

If it's cancer you're

stock.

worried

about, remember that doetors are

curing many more

cancers

than they could ten

years ago
cans are

Aug. 31 capitalization, adjusted
to reflect completion of this of¬
fering, consisted of: $100,000,000
of
long-term
debt;
1,375,000
shares of $20 par value cumula¬
tive
preferred stock, in four
common

were

$67,459,000 and net income ap¬
plicable to common stock was
$6,940,000, or $1.74 per share on
4,000,000 shares outstanding. In
the calendar year 1958 compar¬
able figures were $59,456,000 and
$5,261,000, or $1.32 per share on
the

Are you
have

months ended

65c for each additional
full-page advertisement

puzzle.

that

for

Sept. 8

Diego

800,000 Ameri¬

alive today, cured

cancer... many

of them

because they had

made a

habit of having

annual

checkups no matter how
well they

felt1. ..all of

them because they went

Alkow Adds to Staff

could be broken into

saw

incurred

estimated at $33,042,000, with
tentative estimate of $37,400,000

the regular quarterly dividend on
common stock to 28 cents a share

of Wash¬

with

applied

Total operating revenues of San

ning Dec. 1. According to the rates
filed

costs

for 1960.

recently an¬
public facsimile

Francisco and Los Angeles, begin¬

would

Construction expenditures in 1959

the weather.

circuit consisting

to the comfrom this sale iawill be used
proceeds

are

The microwave project will use
series of towers, 200 feet high

customers.

net

to the reduction of bank borrow¬

simile business.

and

„

construction

for

will

utility

gas

The

while still meeting the broadbank

requirements,

taken

company

public
.

The second system is for highcapacity transcontinental facilities
to

thus

The

and will link 240 air bases in this

country.

(Special to The Financial Chronicle)

sent

that direction.

Co.,

rights to subscribe for 500,000 ad¬
ditional shares of $10 par value
common stock at a price of
$23.40
per share. The offer, which ex¬
pires at 3:30 p. mu EST, Nov; 24,

pro¬
data

very

inch.

For prospectus and free information
consult your investment dealer or:

Diego Gas & Electric Co. is
offering to the holders of its com¬

processing systems of special de¬

to make your money grow and

Sutro

Boulevard,

Calif. —Lau¬

joined the stafS

San

Air

over

•

com¬

HILLS,

P. Jones has

rence

On Rights Basis

put into service in 1958
large wire system for the U. S.

company

service by which messages, docu¬
ments or drawings could be sent

CORPORATION

BEVERLY

Coast Utility
Offers Stock

wire and facsimile systems leased
to business and government have

Western Union also

INVESTING

formerly with J.

sells at about 17.3 times estimated

added perhaps $8 million).
The
"closed
circuit"
private

nounced

BROAD STREET

was

1958

ances

MUTUAL FUNDS

strike, it is estimated. At the
recent price around 44 the stock
(up from a low of 15 last year)

apart; the radio beam
along the route will be
unaffected by electrical disturb¬

BROAD STREET

but

about

flashed

The

Inc.,

Co.,

Joins Sutro Staff

and

averaged

ders with Western Union

and

as¬

Cantor, Fitzgerald
232 North
Canon*

steel

from

late

with

stantial rate increases this year's
operating earnings might normally
have reached $2.75, but may run

million and private

rate

sociated

due to the recession and wage
increases.
With the help of sub¬

$6 to $42 million, with very large
additional
gains
indicated
for
1959-60

An¬

year

down from $12

facsimile services

—

(Special to The Financial Chronicle)

has evidently
considerable
experimental

1956-7

While miscellane¬

were

Calif.

Western Union's operating earn¬

ings

However, Western Union has
considerably better with its

other services.

with

HILLS,

Barth & Co.

(Micro¬
Technical Op¬

use

formerly*

A. Brichant has become

Drive.

firms

for

etc.,

was

(Special to The Financial Chronicle)

BEVERLY

some

number

C. Lloyd Kamrath.

progress in this field.

done

shares.

1920s together with the
cyclical character of the business

transmission

increases in business).

Force, adding approximately
$3,500,000 annually to revenues.
Recently the Air Force placed or¬

since the

witfi

With Cantor, Fitzgerald

network;

invested

connected

now

Boulevard.

closed

leased

electronics

made

message services was
16%—from $160 million
million
(gains in both
would reflect higher rates

split four-for-one;
$1.20 rate, paid in
1958-9, is equal to $4.80 on the old

been

present

puters,

rev¬

and 25 miles

takes what it considers sensible

office.

pete with Bell in automatic data

from

cases

From there on,

however, under the impact of the

small

only
$185

up
to

in which the management hopes

Union

Intrafax,

having

million

have increased

147% while Western Union's

wire

($1-3)

other year, and this has involved
sudden increases in wages which
the company has had to recoup

The Dreyfus Fund is a mutual fund

also

facsimile

fields,

proved

lower

War I the company prospered and

tion

DISTRIBUTORS

million to $10 million, money or¬
der business increased from $13

Prospectus from

keel," paying dividends of $5 an¬
nually (with extras in two years).
During 1908-13 dividends were

In 1948 payments to
employees absorbed 69% of gross
income; by 1958, with increased

Founded 1818

tance toll

earliest

not

readily available,
but during the period 1888-1907 it
years

agreements.

CffcS/utafQfif*
ffctn/taiiy, Trusttt

wave
Associates,
erations, Dyna metrics, TeleWhile statistics on the number
p r o m p t e r.
Teleprinter, Gray
of messages are not
available, it Manufacturnig, and Hycon East¬
may be surmised that competition
ern). It is also anxious to com¬

since 1948 Bell's long dis¬

nated

<A(aMacfiutetk

Usually the in¬
creases were
forthcoming without
too much delay, but nevertheless
regulatory lag (and in one year a
strike)
have
been
a
recurring
handicap.

severe;

ities

with

Western

nearby

Western Union has been getting
into
the
electronics
and
allied

for rate increases.

A. T.

Steadily rising wages have been
company's major problem

providing

the

for distribution of income and prin¬
ual trust account

company

fro.m

the

Life Fund

Stanley EL

—

Dempsey-Tegeler & Co., 750 Sun¬

drew

by asking regulatory commissions

monopoly of
the written message business ex¬
cept for competition with the Bell
System's teletype, etc. Basically,

having

cipal in accordance with

the

Mississippi Valley Print¬
ing Telegraph."
During its long
career the company has acquired
some
540
other
telegraph and
cable properties, the most impor¬
tant being the Postal
Telegraph

provement

A balanced mutual fund

when

dates

during

Massachusetts

Telegraph

back

German

(A.E.G.)

between the customer's office and

set

Hinlein

U. S. network.

General

Telegraph Company

Dempsey-Tegeler

(Special to The Financial Chronicle)

ARCADIA, Calif.

Air Force weather maps are also
transmitted
over
a
12,000-mile

only

buyers, namely One William, de
Vegh
(newly), United Science,

extension of facsim¬

already in use, such
as
Desk-Fax, a push-button ma¬
chine by which, telegrams are sent

circuit

Western Union

services

There

Dreyfus

With
-

service is

BEVERLY HILLS,

Calif.—Joseph

Cianci has been added to the staff
of

Alkow

Co.,

shire Boulevard.

to their doctors in

Inc.,

9235

Wil-

time!

Make annual checkups
a

habit... for lifel

AMERICAN CANCER SOCIETf

The Commercial and Financial Chronicle

destruction or

AS WE SEE IT

(Continued from page-Tf-

effective

chev

use

of individual incentives.

Mr. Khrush¬

those

can

doubt that for

moving away from the
founding fathers. The Communists in their
way seem to have been moving toward it. We can not
afford to let these matters drift.
£

Praises

commonplace to say that our system of
highly progressive income taxation is ruinous to the in¬
centives of the very individuals who otherwise would contribute most abundantly to the successful functioning of
our economy, the men and women of exceptional ability
and energy. And the stricture is as true as it is common¬
place. Any system of income taxation which takes 91% of
all of a man's income in excess of $200,000 leaves the
Of course, it is

Fords, the Rockefellers, the Carnegies and the others of
this day and time without anything to nourish their drive
after a certain relatively low limit is reached. The situa¬
tion is made the worse by reason of the fact, that a very

large part of individual income is taken by Uncle Sam
long before any such level of taxable income is reached.
Half of taxable income goes into taxes as soon as the
$16,000 level is reached. The fact that these limits are
doubled for joint returns does nothing to alter the basic
infirmities of the system. Neither does the fact that cer¬
tain modes of partial escape from some of the rigors of
the

schedules

that this

are

available to

few.

The circumstance

system also takes more than half of corporate

income is another factor of vast moment in this connec¬
tion. It is

essential,

urgent, that something be done

even

about all this.
Not

Only Taxes

But it is not

only in the matter of taxation that we
have formed the habit of destroying incentives. Nor is the
practice confined to government, although government
must bear a very substantial part of the responsibility for
the state of affairs that has arisen in several of the depart¬
ments of our economic system. The extent to which labor
unionism has robbed

men

of incentive to make full

use

produce is probably not widely realized.
thought of having one member compete with another
the output of his day's labor is anathema to unionism
this country. Various and effective practical steps have

been taken to

see

that the abler and

effective work¬

their daily output by the capacity of the less
capable. In many trades it is worth a worker's job to ex¬
ceed the standard set by the rank and file; certainly to
any great extent and consistently over time. The abler
thus not only have no incentive to produce, according to
their ability, but are fully aware that to do so is more or
less certain to bring penalties which they are not ready
to pay. The device of paying abler men
wages over the
uriion scale only in small part overcomes this defect in
the general program of the unions.
ers

gauge

The drive of able

duced

and ambitious

one

cast about

going for

inclination to advance one's position

by
moment beyond the boundaries of his routine

duties. Few in
members

industry these days
unions, where in

the

can

afford not to be

some

cases

feather-

bedding is far more remunerative than any sort of en¬
deavor beyond the strict call of
duty. A situation of this
sort hardly encourages full effort. And we must remember
that the power

nitely

of the unions,

many

of them, is defi¬
years

past been to encourage the growth and the amalgamation
of labor

organizations.

Another field of
is found in the
times

case

outrageous destruction of incentive

agriculture, where definite and at

crushing penalties

nature

duction

full

are

imposed for anything in the

production. This system of limiting pro¬

would, in other circumstances, hasten the flow of

from agriculture where production tends to
outstrip demand as a regular thing into other pursuits.
However, various forms of subsidy tend strongly to crush
manpower

any

incentive which might otherwise exist

farm and

join the industrial

army.

Thus

to leave

the

have here

Tight Money

Move
move

to*

our money

balances

returns

A balanced

Continued from page 7

—and

has not obtained'Tn amendment of

both last year and

same

each

case

this

well

was

of any

long-term increment
in productivity even if all pro¬
ductivity gains are credited to
labor—which, of course, is not the
case.
This year's wage increases,
in
consequence,
will mean still
further
upward pressure on
prices.
This wage-push (or cost-push)
excess

inflation is the kind

have been

subject to steadily in recent years.
sequence is (1) wage settle¬
excess of what is justi¬

The

ments in

fied

productivity
increases
by (2) higher prices for

followed

goods

services

offset in¬
alternative
(3) some resultant unemployment
resulting from the inability of
and

creased cost,

business to live with its
As

new

costs.

preventative of unemploy¬
ment, dictated by the provisions
of the Employment Acr'of 1946,
we have had a year to year in¬
a

the

money
supply,
the year to year
increase in the supply of goods
resulting from the excessively inand services.
The price inflation
creased money supply has been
essential to maintain full employ¬
ment at the high prevailing wage
rates. From 1948 through 1952 we
experienced an average price in¬
flation of 2.1% a year. Some of
crease

than

greater

this,

course, was due to
conditions
associated
with
Korean

conflict.

But

war

the

from

1953

through 1958, price inflation has
averaged 1.5% a year.
The Eisenhower Administration

has taken
this

Federal

inflexible stand that

inflation

must

Reserve

full

cease.

The

has

been

Board

agreement.

But

what, in
fact, can be done? As we
said
before, the Administration
has only one arrow in its quiver.
And that is to tighten the money
supply.
actual

practice this has meant

(a)
market purchases by the
Federal Reserve to put additional
money into the banking system;
(b) tight reserve requirements—
no

open

meaning no loosening of reserve
requirements as the money supply

tightened;
Federal

The

increases

(c)

re-discount

Reserve

sum

these

has

the
rate.

meant

tight money under present condi¬
tions. Of course, the reverse could
loosen

the

get

by what

money

stringency and
develop into

may

crisis in the period im¬

mediately ahead.
If

the

Administration

the

—

Treasury and the Federal Reserve
—stand

inflation that
certainly
develop inay be prevented.
firm,

otherwise

But

the

will
But

most

business

expansion
seems

—

ahead—may be checked, with
resultant unemployment.

wily is

little inflation so

Why
should ' such
a
dangerous, and unpopular, effort
as
this
tight money policy be
adopted to prevent 2 or 3% in¬
flation a year?
Some highly re¬
garded economists, with Sumner
Slichter

Harvard

have

ample,

device

Administration, of course,
hopes things will not get this bad.
In fact
the responsible officials

obviously are working on the
principle that if the boom should
be slowed down, it may also be
extended.
That is, there may be
less
but
of

excesses
a

economic

expansion

now,

prolonged high level
activity.

This

principle is indeed sensi¬
the
damper
of
money
stringency does not get sta bad

ble,

that it results in excessive check¬

ing and resultant unemployment.
(The Administration is attempt¬
ing to do, through money man¬
agement, what it asked for and

foster maximum employment.
do not have the space here
explore the ramifications of the
pros and cons relative to inflation.
One
aspect
of
the
inflation
We

question, however, is little under¬
stood.

And

brings

the

that

one

full circle from where

this discussion began.
That is, the
relationship between inflation in
this country and the position of
the dollar among the currencies
of the world.
The

"sound

term

dollar"

measured

only by the
yardstick of the value of the dol¬
can

lar

And

terms

the

has

all

once

been

have

accounts

important yard¬
impregnable dol¬

losing
in

to balance

ways

currencies.

other

by this

stick
lar

been

than

are

ground.
position al¬
international

some
a

our

raised

has

are,

this

score

for

many

question

much where

ar^

not
where

so
we

heading.
world

The

balances

course,

in-

means

If the
world
not

expect

withdrawn

from foreign * in-,
dustry is forcing our business to >
be

efficient—to

attention

costs

—

pay
so

more,

that

continue to

compete in world
markets.. And, if business finds
that our money supply will not
be expanded to offset excessive
costs, they will be forced still
more
strongly to be efficient in
holding costs down. That, in es¬
sence,
is exactly why the steel
companies are being so adamant
in this strike.
The days of soft
wage settlements—wages beyond
what productivity justifies—have
to end if we are to protect the
integrity of the dollar. The price
can

rises

that

make

harder for

sell, and that open our markets
foreign goods, cannot go / on—
unless we are willing to face the
inevitable consequence of a
shrunken commercial position, in

the world.
So here

have

come

full cir¬

cle, to fill in the background of
the most pervasive factor in the *
economic outlook as we project
our

affairs

ahead from

this date.

in trouble. In

true

been

The

years.

dollars.

we can,

that

our

gold.
Competition

•

President's Two Requests

the last year or so more question
has

world

within

live

want

dollar
in
:

dollars

The President made two funda¬

mentally

important, requests

the

Congress, which he has not
granted
The f irst of these
is amendment of the Employment
Act of 1946 to make the stability
been

by:
and
integrity of the dollar an
selling us goods and services; at¬
tracting our tourists; investments equal objective of national policy/
with the full employment and full
in
this
country;
our
military
spending abroad, our foreign aid production goals now stated in the
Act. Without this requested pro¬
programs and the like.
vision the Act is "all sail and no
We offset this by:
selling our
anchor." It states national policy
goods to other countries; tourists
to be full employment and full
who come here (half as many as
production meaning perpetual
go
abroad
from here);
income
boom—even though a progressive
from investments abroad; and the
inflation would be the price .the
like.
r
nation must pay for these goals.
..The biggest item by far in each
A far healthier position would
category is what we export (sell
be the maximum of employment
to others)
and what we import
and production consistent with a
(buy from others). When we are
stable dollar.
On a policy stated
able to sell more
when other
in this manner, we could build for "
countries find our goods to be the
the future with some permanence,
best buys—so that we export more
and maintain our position in the
than we import, we gain net bal¬
world economy.
ances
abroad.. When goods from
Secondly he has asked elimina¬
other countries become so attrac¬
tion of the 40-year old law which
tive
European automobiles a fixes the interest rate the Gov¬
case
in point — that we import
ernment
can
pay
on long-term
more than we export, other coun¬
bonds (those over 5 years) at tfteA
tries gain balances here.
These
present unrealistic limit of 4t%%.
earns

—

balances

international

are

settle-

The Congress has refused to act

able in gold.

Other countries have been gain¬

ing balances against us. Last year,

1958, we had a deficit in our in¬
ternational accounts of $3.4 ""bil-*
Gold in the amount of $2.3

lion.

billion-

was

withdrawn

settlement—and

partial

gold has continued this year.
None of this is
confidence

Right

now

the

reality becoming bogged down in
And this
is such a time, and the interest
long rate on long-term
governments is

critical,

the

dollar

But, this confidence
be, and might be, shaken.

billion

request

amendment

political considerations.

miantained.
can

this

just as on the
Employment
Act—and for precisely the same
purely political reasons.
Thetfe
are times when
nothing short of
tragedy
results
from
economic
on

modest flow of

some

The

ex¬

advocated

openly

inflation

modest

noted

budget also is
the

be sound

serious?

some

would

Integrity

International

than

and keep the dollar sound.
dollar
is sound then the

Employment Act of 1946.)

Dollar's

attractive

earn

rather

gold.

dication
intend

them

take out

the boom that otherwise

outgrowth of public policy which has for

world

goods.

Rising interest rates encourage
foreign
holders to retain their;

re¬

good union mem¬
must be careful not to stray far from mediocrity

and must have

is further

by the innumerable rules and restrictions

workmen wherever unions exist. To be

ber,

men

dollar
strong

supply is fully
cognizant of this fact.
Indeed, it

dollar

their abilities to
The

;

cannot be divorced from this fact.

the

and force.

keep

Administration's

tighten

ably than he himself realizes and, we are confident, nearer
than most of the rank and file in this country realize,

traditions
left in effect

have to remain

The

intimately acquainted with what is going on
USSR. In any event, he is nearer to the truth prob¬

when he says that we now fail to live up to our
in the system of incentives which we have

But

and be able to sell our

in the

the

happen.

economic competitor in the

number of decades

Thursday, November 5, 1959

sound

of the

faith

right in making his economic system thus even
identical with state capitalism -—right, that is, if

effective performance was and is his chief objective. The
validity of his claim that he now makes better and more
effective use of incentives than do we, is a matter for

have in all such matters been

was

crippling of incentive for full production
agriculture and industry.

different areas,

two

There

(1918)

the U. S. holds $20.5
gold.
However,
the

such

issue.

Congress

The refusal

stands

the

road-block
that

to the most constructive step

could

now

be taken to relieve the

we face.
Nothing else that can now be done
under certain conditions could be would go so far to provide healthy
withdrawn in gold, of $14.9 bil¬ relief
from
the
moneys-market
lion. If all of these credits were stringency as would the elimina¬
withdrawn we would then have tion of the 41/4% ceiling.
only about half of our legally re¬
(1) It would permit the Treas¬
quired gold stock behind our cur¬
ury to get back into the long-term
rency and would be forced to de¬ money
market for some of its

world

holds

value

the

this

dollar

credits, which

dollar.

keep

unhappy

money-market problems

the dollar sound,
impasse will not

needs, which are now forestalled.

(2). It would remove risk of
"monetizing" the national debt —

•

Volume

190

Number 5896

The Commercial and Financial-Chronicle

(1919)

v»

which

much

term

continuing risk while

remains

STATE OF TRADE AND INDUSTRY

short-

issues.

(3) It would notify the country
and the world that we are
willing
to

let

market

interest

cially

conditions

rate

rather

hold

than

down,

duction workers.
In

artifi¬

with

all

the resultant distortions.

build

would

thus

the

confidence

soundness of the

increase

far

future

dollar, and 'thus

the

willingness of our
people to invest in long-term
debt instruments. This
would re¬
lieve the
money market of some
present stringency — and would
own

In fact, I am convinced that if
this unrealistic ceiling limit were
whole

would

structure

shortly

the

see

interest

rates

decline from present levels. With¬
out this artificial
ceiling limit of

4y4% I would be perfectly
willing
to bet
something more than a 5
cent
cirgar that
the
Treasury
would be able to borrow at
4J/i%.
If, on the other hand, the ceil¬

ing is not
for

removed I

that

now

about

what the

the national
I

think

only

say

concerned

effect will

question

The

Output Based

American

month

Iron

and

Steel

Institute

announced

8th

Annual

Prof.

DeGraff

Convention

ings Association
League
State, Lake Placid.

the

Index

for

production

based

1947-49.

on
,

weekly

average

Cravin

City,

Oct:

(par

one

Co., of N. Y.
publicly offered
250,000,000 shares of capital stock
22

centavo-Philippine)

Republic Resources & Development
One. hundred
Philippine
centavos
equal
one
Philippine

_Corp.

Peso/ The current official

rate

The

amount

the

gain

of electric

week's

of 643,000,000

United

one

States

Car

totaled

3V2

in* New

York

peses

the

United

one

dollar... These shares

rate

States

are

The net proceeds will be added

the

company's general corpor¬
funds, to be used as its Board

ate

of Directors may determine in its

oil

exploration program.

REDECO

is a Philippine cor¬
poration, organized on Oct. 19,
1956,- under the Philippine Cor¬

poration Law. The primary pur¬
of its organization was to

pose

for

oil

and

other

Car

pines. REDECO is a new company
in the oil exploration field, with
only such managerial experience
in

field

such

since

its

with

its

formation

technical

has
in

gathered

1956,

personnel

interest

sions held

plied

five .such

sion

(there is

concession will
The

company

commercial

well

according

Philip¬

tions,
as

yield three times

barrels

per

ning.

dis¬

•

Association

decrease

now

American

67,498

cars

Business Failures Rise

Bradstreet, Inc. While casualties continued below the year-ago
level of 299, they exceeded moderately the 250
occurring in the
similar week of 1957.
Some 14% fewer businesses

succumbed,

however, than in the comparable
toll

cars

smalbcasualties, those with

liabilities in

the

steel

an¬

4.6%

similar date

The

November

below

schedule

42%

Shortage

October

and

cautioned

because of the

that

even

and

Rises

into

steel

ranks

November
auto

1952
The

and

1956

steel

strikes

parts

combined.

reporting service added that the auto industry will enter

the prior

November having built 779,000 of its '60 cars and with demand for
the models

crisp and the best since 1955 for this time of year.

added,- however, that Oct. 31
from the 612,000-unjt

However/compact

said

counted for in most

bales, compared with 59,000
lar week

sharp

assembly, totaling 172,000 to date,

car

the

latest

week's

some

to about

production

slump

was

range.

Ex¬

week earlier and 38,000 in the simi¬

Exports for the

season

through Oct. 27 came

474,000 bales, against 581,000 in the same period last year.

were

operated

three

scheduled to close down

and four-day

entirely Oct. 30.

increased 8%

said Ford

Motor Co., which supplies about 50%

requirements, scheduled five-day programs at all of its

and Kansas

plants:-However,
City, Mo.,

was

above thealike period last year.

"Falcon" assembly at Lorain, Ohio,

limited to four days because of short¬

ended Oct. 24,

In the preceding

week, for Oct. 17, an increase of 10% was reported.
weeks ended Oct. 24

Oct. 24

5% increase

increase

was

For the four

registered and for Jan. 1,

noted.

According to the Federal Reserve System department store
sales in New York City for the week

be able to produce until early in week beginning Nov. 2.
"Ward's"

country-wide basis as taken from

on a

the Federal Reserve Board's Index for the week
,

8% for

October 24 Week

Department store sales

ac¬

Michigan plants of Oldsmobile, Pontiac and Cadillac also

car

year ago.

suspended operations Oct. 30 but the Buick facility at Flint, Mich.,

steel

narrow

Nationwide Department Store Sales Up

part by complete shutdowns at nine Chevrolet

(Buick-Olds-Pontiac)

basis this week and

its

makes.

plants and reduced output at other GM auto plants. The six B-O-P

may

November, pinching auto dealer operations sharply.

expected to continue in sizable volume for

plants

week, and trading moved within

ports during the wee kended last Tuesday were estimated at 82,000

dealer stocks will fail to increase

month-ago level and will settle into

(1930-32=100) on Oct. 30, compared with 277.77 in the
prior week and 276.14 on the comparable date a year ago.
Although trading dipped somewhat, most grain prices re¬
mained close to the prior week.
Wheat prices edged up slightly
on
light offerings; while domestic buying of wheat was un«
changed, export purchases moved up somewhat. Transactions in.
rye were limited, and prices were down fractionally.
Salable supplies of corn wdre light again this week, but har-\
vesting was making good progress. Corn prices were close to the
prior week as trading was sustained at a high level. Anticipation
of sizable exports and the small crop held oats prices steady, but*
trading was down somewhat. Reports of unfavorable weather for
harvesting boosted soybean prices; while domestic purchases were
close to the prior week, export buying moved up appreciably.
Prices on the New York Cotton Exchange remained close to

supplier pipelines. "Ward's" said the steel strike,
days old nearly equals the 134-day duration of the 1949

114

and

the

Commodity Price Index
Appreciably in Latest Week

at 279.33

early resumption of steel
output losses in

ago.

Higher prices on butter, hogs, coffee, rubber, and steel scrap
helped boost the general commodity price level appreciably over
that of the prior period in the latest week. The Daily Wholesale
Commodity Price Index, compiled by Dun & Bradstreet, Inc., stood

fill the

now

car

time needed to fabricate

Slightly Higher

row,

Wholesale

November since 1946 when 261,007 cars left U. S.
assembly lines, heralding the industry postwar production boom.
"Ward's"

year

the

any

making will not preclude heavy

week earlier.

advancing in wholesale cost this week were
""flour, wheat, corn, oats, barley, bellies, butter/ milk, coffee, cocoa
and potatoes. Declines occurred in lard, rice and
hogs.
The Index represents the sum total of the price
per pound
of 31 raw foodstuffs and meats in general use. It is not a cost-ofliving index. Its chief function is to show the general trend of
food prices at the wholesale level.

cars,

under

against 25

Commodities

$100,000

the Wholesale Food Price Index,
compiled by Dun & Bradstreet, Inc., moved up somewhat in the
latest week.
On Oct. 27 it stood at $5.93, a gain of 0.7% from
the prior week's $5.89, but a decline of 5.3% from the $6.26 of the

strike, already at 143,000

industry, building 503,000

For the second week in

the

cars.

Steel

excess

Wholesale Food Price Index

13.7%

of 1939 when the

liabilities under $5,000, to 31 from 22 a week ago, although they
fell short of their 1958 level of 37. Nineteen of the
failing concerns
had

cars or

prewar week

318.

was

Failures involving liabilities of $5,000 or more rose to 242
from 228 in the previous week, but remained below the 262 of this
size last year. A slight increase lifted

below

Moderately

Commercial and industrial failures climbed to 273 in the week
ended Oct. 29 from 250 in the preceding
week, reported Dun &

Railroads

10%

approximately 2,335,000

auto

Ford

Compared with the previous week ended Oct. 17,1959, produc¬
of reporting mills was 1.7%
above; shipments were 2.1%

forecast

The

covered by Redeco in its first well

Toledo, Cebu. Province.

year-to-date, shipments of reporting identical mills
production; new orders were 0.5% below pro¬

new orders were 3.7% below.
Compared with the corre¬
sponding week in 1958, production of reporting mills was 0.5%
below; shipments were 6% below; and new orders were 3% below.

operated at 77.8%
of its planned 646,200-unit level in October but is
scheduling only
290,000 completions for November—a weak 46% of the 636,700
originally programmed for the month.

much

day

For reporting softwood

equivalent to 16 days' production at
gross stocks were equivalent to 44 days'

below;

production of 101,088 cars in week ended
Oct. 31. While down only 10% from
previous week's 112,488-unit
total, nevertheless GM Corp. operations are grinding to a virtual
standstill, with Chrysler and Ford Motor either already crippled
or making
painful last minute revisions in November output plan¬

The

according to geologic indica¬

the

"Ward's"

Garcia.

Mr. Garcia said the second well
may,

was

loss

"Ward's"

President

•'

by another 340,000 in coming weeks
industry plunges into its worst November assembly
"Ward's Automotive Reports" said.

ap¬

this

stocks.

gross

above

years,

granted).

Central

tion

kwh. and showed a
above that of the comparable

of Oct. 30 wiJFswell

conces¬

assurance

the

cars,

This

decline in

quantity again in its

second

auto

but

has struck oil in

pines,

Carlos P.

such

were

rate, and

the

0.2%

freight for the week ended Oct. 24, 1959

revenue

conces¬

by others, and has

for one more

to 34%

duction.

12,762,000,000
5.3%

output losses due to

em¬

ployed by its promoters. REDECO
presently holds 16 petroleum ex¬
ploration concessions granted by
the Philippine, government,
has
an

kwh.,

Output Losses Mount Due to

Car

basic

minerals and metals in the Philip¬

current

were

above the preceding week. It is estimated that about
165,000 addi¬
tional cars would have been loaded in the current week if there
had been no steel strike. Based on these week-to-week estimates the

being of¬
fered in units of 200 shares each,
at a price of $2 per unit. These
are
speculative securities.
to

corresponding week in 1958, and a decrease of 96,341
below the corresponding week in 1957.
Loadings in the week of Oct. 24 were 26,57,9

Sept. 29, 1959/ the Philippine peso
quoted- as selling on the free

market

amounted

For

Loadings Down 10% from 1958 Week

607,347

nounced.

was

were

mills

production.

distributed by the ele&tric light

energy

total

pesos

dollar.

mills

the

Weclf*

cumulative

exchange is two Philippine

476 mills reporting to t^e National.
were
10.4% below production for the
24, 1959.' In the same week new orcters oi these
14.6% below production. Unfilled orders of reporting
Barometer

mills, unfilled orders

power industry for the week ended Saturday, Oct. 31, was
estimated'at 12,978,000,000 kwh., according to the Edison Electric
Institute.
Output increased by 216,000,000 kwh. above that of

Loading of
John

the

and

Market

Shipments 6% Below 1958 Week

week ended Oct.

production

Above 1958

1958 week.

Philippine Oil Co.

car-truck volume

shipments "of

**
*

Sav¬

York

week's estimated

Lumber

before

New

that this

was nearly parallel to the figure for the same week in.
recession-year 1958 (116,982).
'
This year's cumulative car-truck production total to date
(5,837,361) is ahead of 1958 (3,820,873) by 53%.

ago

Electric Output 5.3%

Common Stock of
Placed

"Ward's" noted

was

actual

related to the

(117,417)

Lumber Trade
that

entirely

125.2%.

*An. address

13.0% of Capacity

economic outlook.

the

was

the operating rate (based on 1947-49 weekly
*22.5% and production 362,000 tons. A year ago
weekly production was placed at 2,011,000 tons, or

production)

the

largest single imponderable in the

Output

Actual output for the week
beginning Oct. 26 was equal to
13.1% of the utilization of the Jan. 1, 1959 annual
capacity of 147,633,670 net tons. Estimated percentage for this week's forecast
is 13.0%.

the

operating rate of the steel companies will average *22.9% of steel
capacity for the week beginning Nov. 2, equivalent to
363,000
tons of ingot an&steel
castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual
rate of 23.1%
of
capacity and 37,000 tons a week ago. [ED. NOTE: A strike in the
steel industry began
Wednesday, July 5 and is still pending.]

and

looms

now

of capacity.

not

were

"Ward's" indicated that the truck industry is also
showing
signs of depleted steel inventories. The reporting agency estimated
last week's production at
16,329 units—a 32% decline from the
highest total of the '60 model run (23,954 units.)
Only three Chevrolet truck plants worked this week—-Bloomfield, Los Angeles and Oakland. Another major producer, Dodge's
Warren, Mich., plant, is scheluled to close down completely Oct. 30.

Lumber

Steel

the

econorhy. That is why

this
to

answer

can

13.5%

removed

move

said

company

four days in the current week.

slightly this week as Kaiser's production
rises. Besides Kaiser
facilities, 71 plants of 61 companies are still
operating: 36 plants are making steel oil United Steelworker exten¬
sions
of one kind or another; three have
signed new contracts
(Detroit Steel Corp., Continental Steel
Corp., and Wickwire Bros.
Inc.); five have unexpired contracts; 27 do not have USW contracts.
"Steel's" price composite on No. 1
heavy melting grade of scrap
held last week at $44.33 a
gross ton for the third straight week.
Prices are marking time at most market
centers, pending the
expected pickup in mill requirements.

remove
risk of the worst of all
kinds of. inflation—a
flight from
the dollar.
-

the

The rate will

dollar

sound.

(5)

ingot rate climbed 0.4 point
about 382,000 ingot tons.

(4) It would consequently notify
the worlddhat we are
willing, and
do

intend, to keep the

losses to

Last week's

cause

Tax

the U. S. amount to
$710,000,000.
production, the cost amounts to 30,900,000 tons.
steelmaking operations were up fractionally be¬
resumption of Kaiser Steel Corp. operations. The

terms of lost
,

the

steel crisis.

"Ward's" said the American Motors plants at
Kenosha, Wis.,
continued a six-day car-building schedule which has been in effect
for the past month. Most
Chrysler Corp. plants will operate only

Continued from'page 5

the

set

which

ages

over

the like

6% increase
increase
showed

was

was
a

period last

shown.

reported
increase.

year.

ended Oct. 24 increased 8%

In the preceding week Oct. 24 a

For the four .weeks ended Oct. 24 a 1%

over

the

1958

period.

Jan.

td Oct. 24

(1920)

The Commercial and Financial Chronicle

* I N DICATES

Securities
•

Acme

Missiles & Construction Corp.
(11/9-13)
July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for
public sale
Ifor the account of the
company, and 50,000 shares will be
offered for the accounts of the present holders thereof.
JPrice—$6 per share. Proceeds—For general corporate

purposes,

including

additional

personnel,
provision of funds

«2quipment,

office

space,

and the
compete for certain contracts.

necessary
to
Office—2949 Long Beach

Road, Oceanside, L. I., N. Y.
Lomasney & Co., New York.

Underwriter

•

—

Myron A.

Aircraft Dynamics International
Corp. (12/1)
(letter of notification) 100,000 shares of com¬

i3ept. 25

stock

mon

—For

(par 10 cents).

Price—$3 per share. Proceeds

general corporate purposes.

Office—229

State

Street, Dover, Del. Underwriter—Aviation investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
®

Alaska Consolidated Oil
Co.,

Inc.

ISept.

17 filed 3,000,000 shares of common stock (par
give cents). Price—$2.50 per share.
Proceeds—For fur¬
ther development and
exploration of the oil and gas po¬
tential of the company's Alaska
properties. Office—80
Wall Street, New York.
Underwriter—C. B. Whitaker

Co., New York.
four

Now

Offering—Expected in about three to

weeks.

be determined

by competitive bidding. Probable bidders:
First Boston Corp. and
Halsey, Stuart & Co. Inc.
(jointly); Morgan Stanley & Co. and Kidder, Peabody
& Co. (jointly). Bids—Expected to be received
before
11:30 a.m. (EST) on Nov. 17 at Room
2315, 195 Broadway, New York, N. Y.
The

•

Anodyne, Inc., Bayside, L. I., N. Y. (11/9-13)
Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent).
Price—:$2 per share. Proceeds—For
expansion and general corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New York, N. Y.
•
Anthony Pools, Inc.
Sept. 28 filed 200,000 shares of outstanding common stock
(par $1). Price—To be supplied by amendment. Proceeds

selling stockholders. Office—5871 Firestone Boule¬
vard, South Gate, Calif.
Underwriter — Marron, Edens,
& Co., Inc., New York. Offering —
Expected in
December. \
/ /, /.; •,
•
-

Sloss

Anthony Powercraft
Sept. 8 (letter of notification) 241,200 shares of 5%
mulative

be sold for cash in multiples of
$50, and Albright savings
bonds will be issued and sold for cash in
any amount
deposited by the investors.
be invested in
real estate mortgages.

Proceeds—To

Office—Newkirk, Okla.

—

boat, working capital, etc.
Alliance Tire &

Price—At par

inventory,

capital.

Rubber Co. Ltd.

ISTadera, Israel.

Office—

Associates,

Washington, D. C.,

and New York.

Small

for

stock

common

share). Proceeds—To pur¬
tools, construction and for working

new

per

Firestone

Boulevard,

South

Arizona

Business

Fertilizer

River

Chemical Co.

share.

per

holders thereof. Price

Proceeds

including

the

—

For

—

Around

general

provision

corporate pur¬
funds for the ex¬

Investment Corp.
£3ept. 29 filed 100,000 shares of common stock
(par $8).
JPrice—$11 per share. Proceeds—To be used to
provide
equity capital and long-term loans to small business

pansion of Cortez Chemicals Co., a subsidiary, the addi¬
tion to working, capital of the
issuing company, and the
partial liquidation of its unfunded indebtedness. Office—

concerns.

writers

Office—Washington, D.

be supplied by amendment.

Underwriter^-To

734 East

Boatbuilding Corp.
(letter of notification) 100,000 shares of com¬
mon stock (par 15
cents). Price—$3 per share. Proceeds
—For additional
working capital, to pay off a note and
tor expanding and
improving the boat building business.
Office—Division Street, Warwick, R. I. Underwriter—
Rrank P. Hunt &
Co., Inc., Rochester, N. Y.
it American Ceramic Products, Inc.
1
4Sept. 29

„

Oct.

(letter of notification) 32,000 shares of common
clock (par $2).
Price—$9.37% per share. Proceeds—For
working capital. Office—1825 Stanford
St., Santa Monica,
Calif.
Underwriter—Morgan & Co., Los Angeles, Calif.
•

Foreign Power Co., Inc. (11/6)
220,000 shares of common stock (no par).Price
—To be supplied by amendment.
Proceeds—Will go to
celling stockholder, Electric Bond & Share Co. which
upon
completion of the offering will hold 52.3% of the total
outstanding stock of American & Foreign Power Co.
Underwriters
Lazard Freres & Co. and
filed

—

Boston

The

Arkansas

American Investors
Syndicate, Inc.
June 25 filed 600,000 shares of

common

stock

(par 10
cents), and 200,000 shares of 6% preferred stock
(no par
value, $9 stated value), to be offered in unite
consisting
of 3 shares of common
($1 each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction

and

related expenditures.

national Trade

Office—513 Inter¬

Mart, New Orleans, La.
Underwriter—
Bindsay Securities Corp., New
Orleans, La
The SEC
bad scheduled a
hearing, to begin on Sept. 2,'which will
determine whether

ing the

offering. As

rendered.

stop order will be issued suspend¬
of Oct. 21, no decision
had been

American Motorists Insurance Co.
.Sept. 22 filed 166,666% shares of
capital stock (par $3),
being offered to holders of
outstanding shares of such
fitock ol record Oct.
27, 1959, in the ratio of one new
Cihare for each eight shares
then held; rights to
expire
on or
about Nov. 27.
raise the ratio of its
reserve

Price—$12 per share. Proceeds—To
capital stock, surplus, and surplus
premium writings, to increase
underwriting

capacity, and for
4750 Sheridan

general

corporate

purposes.

Office—

Road, Chicago, 111. Underwriter—None.

American Service Life
Insurance Co.
-Sept. 14 filed 375,000 shares of common
stock, of which
300,000 shares are to be publicly offered.
Price—$3.50
per share.
Proceeds—For general corporate
purposes,
including, possibly, the acquisition of similarly
engaged
companies. Office—113 Northeast 23rd
Street, Oklahoma
City, Okla.
Underwriter
First Investment
—

Co., Washington, D. C.

Planning

American Telephone &
Telegraph Co. (11/17)
Oct. 22 filed
$250,000,000 of 27-year debentures, due Nov.

1, 1986. Proceeds—For general corporate
purposes.
Of¬
fice—195 Broadway, New York
City.
Underwriter—To

Proceeds—For construction.

Underwriter—To

be determined by competitive
bidding. Probable bidders:
^Halsey, Stuart & Co. Inc.; Lehman Brothers arid 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

Bids—Expected to be received

Corp.

to 11:30

a.m.

(jointly).
(EST) on

Dec. 8.

Ryons & Co., Los Angeles Calif.
•

B. M. 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
into the civilian market. Office — Newton
Highlands*,
Mass.
Underwriter—G. Everett Parks &

Broadway,

common

stocks.

Office—301

11th

Kansas

City, Mo. Underwriter—Jones Plans, Inc.,
sidiary of R. B. Jones & Sons, Inc.
Atlantic City

Electric Co.

Street,
a

sub¬

(11/19)

needed

for costs of construction
being incurred in 1959.
Underwriters—Eastman Dillon, Union Securities & Co.
and
Smith, Barney & Co., both of New York.
it Atlantic & Pacific Life Insurance Co. of America

Oct. 26

(letter of notification) 30,000 shares of common
(par J>2.50). Price—$10 per share. Proceeds—For
working capital. Office—1430 W. Peachtree St., N. W.,
stock

Atlanta 9, Ga.

Underwriter—None.

Sewing Centers, Inc. (11/16-20)
$2,000,000 of 6% convertible subordinated
debentures due Nov. 1, 1974. Price—100% and accrued
interest from Nov. 1, 1959 to date of
delivery. Proceeds
—Along with other funds, will be used for reduction of
short-term loans, for company's
expansion program, and
for additional
working capital. Underwriter—Van Alstyne, Noel & Co., New York.
filed

Atlas Sewing
Centers,
Oct. 15 filed 75,000 shares

Inc.

cent), to be offered in exchange for the
General

Industrial

(par

one

stock of

common

Enterprises. Inc., at the rate of five

General share. Offering — Ex¬
pected in two to three weeks (subject to SEC approval).

Bankers Management Corp.
Sept. 10 (letter of notification) 300.000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For

working capital.

Office—1404 Main Street, Houston
Underwriter—Daggett Securities, Inc., Newark,
Offering—Expected in about 30 days.

2, Texas.
N. J.

(letter of notification) 100,000 shares of common
(par $1.60). Price—$3 per share. Proceeds—For
expenses incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Colo.

stock

Underwriter—Ringsby
Colo.

Underwriters,

Inc.*

Denver

Barber-Greene Co., Aurora,
Oct. 21 filed

133,600 shares of

which 125,000 shares

are

III.

accounts

the

(11/16-20)

common

stock

(par $5) of

to be offered for the account of

issuing company, and 8,600 shares

are

holders

present

to be offered for

thereof.

Price—To

be supplied by amendment. Proceeds—To be added to
general funds to reduce bank loans. Underwriter—Wil¬
liam Blair & Co., Chicago, 111.

it BarChris Construction Corp.
Oct.

filed

280.000

(12/4)

common

stock.

Price

—

$6 per share.

including
New

Proceeds—For general corporate purposes,'
expansion. Office — 35 Union Square West,

York.

Underwriter—Peter

■

Morgan

Co.,

&
;

■
,

A.'

New
_

•

Barton's Candy Corp.
Sept. 28 filed 175,000 shares of common stock
of which

—To be

(par $1),
150,000 shares are to be. publicly offered. Price
supplied by amendment. Proceeds—For general

corporate purposes, including the financing of accounts re¬
ceivable, the provision of funds for new machinery and

equipment, for construction of new stores and improve¬
ef-present outlets, and for working capital. Office
—80 DeKalb Avenue, Brooklyn, N^ Y.. Underwriter—

ments

Blair

★ Basic
Oct.

Co.

Offering—Expected tbday

Products

(Oct. 5).

Corp.

filed 100,000 warrants for the purchase of com¬
stock, and 100,000 shares of stock reserved for is¬
upon exercise of said warrants.
Proceeds—The

mon

Robert Kamon

Baker Oil

is President.

Tools, Inc.

(11/12)
550,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Business—Company designs, manufac¬
filed

deem

notes

issued

equal

amounts

Mass.

re¬

Mutual

Life Insurance Co. and New England Mutual Life Insur¬
ance Co. in connection with the (consummated) acquisi¬
tion

used

•

Hevi-Duty Electric Co., with the balance to be
general corporate purposes. Office—3830 West
St., Milwaukee, Wis.

for

Biederman Furniture Co.

(11/9-20)

Oct. 16 filed 331.635 shares of class A

common stock (par
$1). Of the total, 216,549 shares will be sold for the com¬
pany's account and 115,086 shares are being offered for
the accounts of certain selling stockholders. Price—To be
supplied by amendment. Proceeds—$845,170 will be used
to purchase from the shareholders of Biedermans of
Alton, Inc., an Illinois corporation and Biedermans of

Springfield, Inc.,

Missouri corporation, all of the out¬
The shareholders

standing stock of both corporations.

from whom such stock is be acquired are David

Bieder¬
William Biederman and the Trustees of the Trust
created under the Will of Charles Biederman,
deceased, all of whom are also selling shareholders; the

man,

balance will be used, for general corporate purposes, and
the possible future expansiom^Df its business by opening
of additional

stores, requiring the carrying of additional
additional instalment obligations, and
possibly for the expansion of warehouse facilities.
Underwriter
Dempsey-Tegeier & Co., St. Louis, Mo.
inventories

and

also

—

it Bissonnet Co.
22

notification) pre-formation limited
partnership interests in an aggregate of $285,000 to be
offered in units of $5,000. Proceeds—For land, buildings,
equipment and expenses. Office — 555 Fifth Ave., New
York, N. Y. Underwriter—None.
Oct.

Price—

share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes
Office —1301 Avenue
L, Cisco, Texas.
Underwriter —

Oct.

(letter

Blanch-Ette, Inc.

Australian Grazing & Pastoral Co., Ltd.
Jan. 13 filed 4,000,000 shares of common stock.
At par (56!% cents per

Oct.

Securities Corp., New York
20 filed 323,825 shares of common stock

Oct.

(11/16-20)

of common stock (par $1).
supplied by amendment.
Proceeds—To
selling stockholders. Office—Miami, Fla. UnderwriterVan Alstyn'e, Noel &
Co., New York.

Price—To

None.

;

Estates

Atlas
15

Co., Inc., 52
Offering—Expected some¬

City,

Baldwin

Grant

Oct. 20 filed 200,000 shares of common stock
(par $4Va)
Price—To be supplied by amendment. Proceeds — To
provide part of the funds required for the
company's
1960 construction and to provide additional funds
if

•

York

proceeds from the sale of the stock will be used to

Associations Investment Fund

ment

New

time after Nov. 20.

suance

Aug. 28 filed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬

Oct.
<i

Power

Light Co. (12/8)
filed $15,000,000 of first mortgage bonds, series

due 1989.

First

Corp., both of New York.

—

Oct. 23

American &

Oct. 7

Southern Pacific Drive, Phoenix, Ariz. Under¬

Mitchum, Jones & Templeton, Los Angeles,
Calif., and Walston & Co., Inc., New York.

American

ISSUE

an°d-distributes a broad line of specialized tools:
equipment used throughout the world in drilling.:
Underwriters—Lehman Brothers, New York, and Lester

the

Sept. 24 filed 100,000 shares of common stock (par $2.50)
of which 75,000 shares are to be offered for the
account
of the issuing
company, and 25,000 shares' for the ac¬
counts of the present

REVISED

Bankers Preferred Life Insurance Co.

(par $1)
stockholders (with a
public. Of the total shares to be offered, 103,430 shares
are under options and
subscriptions. Price — $1.25 peri
share. Proceeds—For relocating and
improving manufac¬
turing | plant; advertising,
additional
inventories
and
Office—1355

ITEMS

Jan. 30

shares of com¬
being offered for subscription by
15 day standby) and then to the

capital.

and

Underwriter—None.

stock

mon

poses,

Allied

cu¬

Architectural Plastics Corp.
Sept. 30 (letter of notification) 260,686

Offering—Expected V $9

«*ny day.

offered

rate of two

•

iSept. 9 filed 100,000 shares of class A stock. Price—$12.60
per share, payable either in cash or in bonds issued
by
Proceeds—For expansion.
Agent — Harry E. Brager

($1

Office—5871

Gate, Calif.

AD DITION S

SINCE

Baldwin shares for each

Rd., Eugene, Ore.
Underwriter—Zilka, Smither & Co., Inc., Portland, Ore.

Underwriter—None.

the State of Israel.

preferred stock to

common stockholders at the

preferred shares for each three shares of
held.

Aleutian Development
Co., Inc., Unalaska, Alaska
26 (letter of
notification) 30,000 shares of common
fttock. Price
At par ($10 per
share). Proceeds — For
machinery, buildings, stock cattle ranch, purchase of a> working
Oct.

convertible

subscription by

Thursday, November 5, 1959

tures,

—To

chase

Albright Bond Mortgages
Oct. 1.9 filed $2,000,000 of
Albright bonds,, of which Al¬
bright Title & Trust Co. is the trustee. The bonds are to

•

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
offered to the. public. Price—$1 per share. Proceeds—
To establish new dealerships, increase inventories, and
provide funds for advertising and increase working
capital. Office—10232 South Kedzie Ave., Chicago, 111.
12

offered

Underwriter—None.

Border Steel

Sept.

oinlrincf

filed

-Pnnr?

Roiling Mills, Inc.
$2,100,000 of 15-year
rllia

Hot

A
6%
1Q74

subordinated
PTlCl

210-000

Volume

Number

190

Commercial and Financial

The

5896

Chronicle

(1921)

shares
units

of
of

stock

common

$50 principal

amendment.

par), to

offered

—

supplied by
of land and

equipment.

necessary

Office—1609

Texas

Street, El Paso, Texas. Underwriters—First Southwest
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
Texas.

Border

Steel

Roiiing Mills,

Inc.

Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record
Aug. 31,
1959, on the basis of 49 new shares for each share then
held.

Price—To be supplied by amendment.

For

general

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.
Burch Oil Co.

Proceeds—For building and

equipping stations and truck
stop and additional working capital. Office—C/o Gar¬
land D. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town

Building, Baltimore 2, Md.
Industries

Cadre

new

for

each

then

Corp.

Sept. 25 filed 17,532 shares of common stock (par $5),
to be offered to holders of such stock of record Oct. 23,

vestment.

None.

Stock

—California

Metals

Corp.

Underwriter—Shearson, Hammill

California

Co-Fly, Inc.

Sept. 14 filed 140 shares of voting common stock. Price
($5,000 per share). Proceeds—To purchase the
related facilities of Durable Plywood Co. for
$690,000, with the balance to be used for working capi¬

—At par
mill and

tal.

Office—Calpella, Calif.

is to be

nine

Underwriter—The offering
made by Ramond Benjamin Robbins, one of the

promoters, the list of which also includes Harry
Holt, of Eureka, Calif., President of the company.

Ernest

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
share for each 2% shares of Flexonics common and one
Calumet share for each 4 shares of Flexonics preferred.

if Capital Life Insurance & Growth Fund (11/19)
Oct. 26 filed (by amendment) 500,000 shares of stock
(par one cent).
A class of stock issued by Capital
Shares, Inc. Price—$10 per .share. Proceeds—For in¬

•

offered

•

Co., New

stock, of \vhich 200,000
the Carrier
Employees

under

Carwin Co.

In¬

Office—Syracuse, N. Y.

(11/12)

Oct 2 filed 48,080 shares common stock
(par $2), of which
46,080 shares are to be offered for subscription by com¬

stockholders at the rate of

mon

four shares held..
sold

Mutual

are

Ownership Plan and 250,000 shares under its

centive Stock Option Plan.

July 27 filed 2,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for
assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.

•

Sept. 25 (letter of ontification) 120,000 shares of class A
common stock (par five cents).
Price—$2.50 per share.

Bank

one

Texas

purposes.

Street, El Paso, Texas.

held; rights to expire on or about Nov. 16 (subject to ' York.
SEC
approval). Price—$64 per share. Proceeds—For*' I
general corporate purposes, including working capital r if Carrier Corp.
Oct. 30 filed 450,000 shares of
Office—20 Valley St., Endwell, N. Y. Underwriter—

Proceeds—

Office —1609
Underwriter—None.

corporate

basis

the

debentures' and five

Price

Proceeds—For the purchase
thereon, and for the manufacture and in¬

construction

stallation

($2.50

amount

stock.

common

for the

one

new

The remaining 2,000 shares

account of

for each

being
selling stockholder. Price—To

are

be supplied by amendment. Proceeds—For

general cor¬
porate purposes including the repayment of outstanding
bank loans in the amount of $425,000, the
provision of
funds

for

the 1959-60 construction
program, and for
working capital. Office—Stiles Lane, New Haven, Conn.
Underwriter—Putnam & Co., Hartford,' Conn.
•

Chadbourn

Gotham, Inc.

Sept. 28 filed $2,000,000 of 6% conv. subord. debentures*
due Oct. 1, 1974, with warrants to purchase
200,000 shares
of common stock (par
$1), to be offered for subscription
by holders

of its

common

held

about

Oct.

attached

for

about

30.

stock

common

debentures, with

cash

Oct.

for

general

rate

each

of $100 o£
purchase 19

100

common

1959; fights to expire

15,

Price—To

Proceeds—For

the

warrant

supplied by

corporate

on -ojc

amendment*
including

purposes,

working capital and the acquisition of shares of the outContinued

34k

page

J
_

CALENDAR

ISSUE

NEW

•

(William

Conetta

November

Barton's

(Thursday)

Corp.——

Candy
"

General

Blair

(D.

and

Co.

(First

stockholders—underwritten

(Offering to

and

Frontier
<j.

629,976

Corp.)

Williams &

November 6

Common

Corp.—

Beryllium
<R.

'►«.

Lomasney

Micronaire
$1,200,060

Co.)

Common

Co.,

(Dcmpsey-Tegeler

—

(Schwabacher

Electro-Sonic

(Candee &

Sherman

Corp.

(A.

—...Common

lnc

$300,000

Co.)

Common
375,000 '

(McDonald

Giant

(Auchincloss,

Parker

Redpatli

Kidder,

and

Peabody

(Bache

Oak

(Lehman

Brothers

Class A
(Robert

Fennan

Smith,

and

(Tuesday)

Kayser-Roth Corp.
Pitney-Bowes,
(The

200,000

State

Tennessee

Gas

Co.,

World

300,000

and White,
shares

Great

Baker

Oil

Tools,

,(Lehman Brothers

Carwin

Inc

Common

and Lester,

Ryons & Co.)

550,000 shares

Common

__—

(Putnam

Co.)

43,080

(Offering

Power Co

York

Boston

Frantz

Corp.)

—_—Common
Miller,

Atlas Sewing
(Van

Co.,

The

First

...Common

—_

Inc.)

Financial

190,953

Fenner

Brothers)

Lehman

Smith

467,247

Inc.)

Investors

Alstyne,

Noel

Co.)

75,000

Alstyne, Noel &

——

Co.)

Corp....Common
Inc.)

Lane

Space

Debentures

Dashew

$2,000,000

Marine,

850.000.000

Corp.)

Common

$1,248,000

.Common
125,000 shares

——Debentures

Inc.—

(Boenning

Vance-Sanders

Winkelman Bros.

$1,250,000

Co.)

Co.,

Inc

..Common

shares)

Apparel, Inc

December

Common

Co.)

145,000

invited)

Bonds

$7,500,000

(Friday)

Debentures

$1,090,000

& Co.)

Supermarkets, Inc
Norman

Corp..

Morgan

December 7

(Shearson,

& Co. )

(W.

Staats

Harman-Kardan,

Co.)

Inc.
Bl&uner &

..Common

Co.)

$1,630,000

Common

Co.)

655,000 shares

December 8

(Tuesday)

Arkansas Power & Light Co
11:30

(Bids

a.m.

—

December 9

a.m.

New England Power
to

——Debentures
Co.,

Inc.)

$600,000

$3,000,000

(Bids

Dyna-Therm

Preferred

invited)

100,000

—.Preferred

invited)

$10,000,000

(Thursday)
Morgan &

Common
$600,000

Central,
&

Co.,

Inc..^——-Common

Inc.)

$150,000

(Tuesday)

Gas

Co.)

(Tuesday)

Johnny-On-the-Spot

Louisiana

$4,000,060

Chemical Corp
(Peter

January

__•—„___Bonds

EST)

New England Power

Common

150,000

.Preferred

EST)

(Wednesday)

(Bids

.Bonds

$15,000,000

EST)

Missouri Power & Light Co

December 15

Common

$300,000

Machines, Inc
Hammill

(Monday)

Alstyne, Ncel

Business

(Milton

$300,000

York, Inc.—Bonda

Marine, Inc...

Service
-

(Van

America,

invited)

December 10

November 23

(Diran,

Common

___Bonds

(Tuesday)

(Johnson,

„„

.....

$7,500,000

Consolidated Edison Co. of New

Debentures
by

Consolidated Diesel Electric Corp
(Van

$600,000

250,000 shares

invited)

(Richard. Bruce

Centers, Inc

Co.)

Fall River Electric Light Co.

Corp

Piedmont Natural Gas Co., Inc.————Preferred
(Offering to stockholders—underwritten by White, Weld & Co.)

(Monday)

Atlas Sewing Centers, Inc.-

State

Cracker Barrel
•November

100,000

Inc.)

(Friday)

66,490 shares

Manufacturing Co
(Bla!ir

Dynamics International

.Common

——

stockholders—underwritten

Pierce,

$915,642

Trans-World Financial Co.:

Common

stockholders—underwritten

Corp.)

$150,000

Inc.)

36,23?

Colorado Central

Co.) -$5,000.000

Electric & Gas Corp
Common
(Offering to stockholders—underwritten by The First Boston
Corp.; Lehman Brothers; Wertheim & Co. end Merrill Lynch,

New

Common

BarChris Construction

$9,998,800

(Thursday)

Co.

Western

(Offering

Weld & Co.)

...Common
105,0)0

(Watling, Lerchen

Common

and

$1,089,125

Co.)

Lomasney

December 1

Aircraft

(Bids

November

(Bios

(Bids

Mellen

November 20

Preferred

Securities Corp.

Publishing
(Joseph,

$500,000

Inc.)

Transmission

(Stone & Webster

Fenner

Common
I-Iammill

(Darius

Debentures
Keenan

Pierce,
(2,000,000 shares

Electronics Funding Corp

Industries
(John

Common

Fund

$175,000

Inc.)

Ebprstadt & Co.)

(Peter

Common

Holman & Co.,

Capital Life Insurance & Growth Stock

..Common
Corp.)

(F.

(Thursday)

(Shearson,

Span America Boat Co., Inc
(R.

Fenner

Barney & Co.) 200,000 shares

Smith,

—Common

Boston

Staats

Co.

Dillon, Union Securities & Co. and

(Eastman

375,000 shares

Inc.

First

Pierce,

Atlantic City Electric Co.__

Common

Webber, Jackson & Curtis and Tucker, Anthony
& R. L. Day) 105,000 shares

(Hemphill, Noyes & Co.)

Inc.)

Worcester County Electric Co..

Hydromatics, Inc.
iPaine,

Co.,

Common

Business Machines Cerp.____ .Debentures

Debentures

Lynch,

60,000

du Pont &

Seligman & Latz, Inc

United

$40,000,000

Inc.)

Co.)
__

(Monday)

Bond

(Myron

United

—

Merrill

Smith Inc.

November 19

November

$250,000,000

$(>00,000

Co.)

Mohawk

Debens.

Transwestern Pipeline Co.—
(Lehman Brothers and Merrill Lynch,

Co.) $300,000

Lomasney &

(Myron A.

and

(400,000

Common

Realsite

received)

Walker

Corp

......Common

Merry Brothers Brick & Tile Co

(Wednesday)

Transwestern Pipeline Co

——Bonds

Frequency Co., Inc..

Radio

$670,000

(Tuesday)

Inc

(Boennhig & Co.)

November

$125,000

Co.)

Common

Telephone & Telegraph Co
(Bids

—Bonds

Valley Water Co....
(Bache

American

Bonds

;

$16,000,000 '

EST)

a.m.

and

(Bids

...Bonds

Worcester County Electric Co._—__

-Common
.—

(Plymouth

.'Common
100,000 shares

165,000 shares

Co,)

$1,500,000

Life Insurance Co. of Florida—————Common

Co.)

$145,000

Co.)

_____!
Peabody & Co.)

Kidder,

Mohawk Business Machines Corp.——.—Common

•

...—_———jJ^yron A. iomasney &~Cu.).. -3Q,000_share3__

$750,000

$749,000

110,837

(Michael G. Kletz & Co.)

November

Oak Valley Sewerage Co

(William
■

Common
Inc.)

$5,000,000

—

Robinson-Humphrey

(Aviation

$299,799

Co.)

Co.,

Container Corp..

Universal

Metropolitan Telecommunications Corp...Common
(Lee

(McDonald

200,000

Lomasney

and

Co.

—-——-—Common

Food, Inc.—

(Bids

Brothers

......Common

Smucker Co

v(J. M.)

120,000

Co.)

Hawthorne Financial,Corp..

Wts.

......—..Common

yScott & Fetzer Co.!

Aetna Securities Corp.)

Staats &

Corp

Peters, Writer & Christensen, Inc.)

Becker

First Financial Corp. of the West——_—Common
(William

(Tuesday)

November 30

Com.

Reserve Insurance Co._

—

and

Gleich Co.

<D.

Co.,and

(D.

$5,000,000

Cc.)

Laboratories,

(L.

Enflo

•

Corp

Chemical
The

50,000 warrants

Rek-O-Kut Co., Inc.—.—

Debentures

Inc..—

Eitel-McCullough,

200,000

Corp.)

Co., Inc.)

(Johnson, Lane, Space Cor)).; Francis I.

Common

.Debentures

Fuller

Industries,

(Lehman

Oxford

Medical Products

Investing Corp.)

National Video

Gulton

85,035

(Bids II a.m. EST) $15,000,000
November

k
(Bache & Co.) 283,307 shares
- > :>
\ Northern Properties
....^.Common

331,635

Investing

Baird

Gulf States Utilities Co

325,000

Co.)

196,400

———Debentures

Industries, Inc.

$404,106.50

*—Common
Co.)

Podesta

Electro

(General

$300,000

Inc.)

Furniture Co

Biederman

...Common
Lyon

Co.)

Inc,)

Co.,

;

(Robert

_—.Debentures

Potomac Electric Power Co

Common

Corp.)

...Common

Blauner

(S.

Micronaire Electro Medical Products Corp

225.000 shares

Corp

Anodyne, Inc.
(Ross,

Street

Peabody

(Cruttenden,

(Monday)

65,877

Lindberg Steel Treating Co., Inc

& Construction

(Myron

•

Co.)

•

Corp.) $300,000

Christensen, Inc.) $6,000,000

(General

November

Hogle & Co.; Garrett-Bromfield & Co. and Peters, Writer

...Common

Co., Inc

(Lazard Freres & Co. and The First Boston Corp. )

Acme Missiles

Perrine

Corp.

(Kidder,

(Friday)

American & Foreign Power

Common

Gibraltar Financial Corp. of California—.Common

$300,000

Inc. >

Co.,

Refining Co
&

.Standard

(Milton

Marine

—___________Common

;

Broad

Harman-Kardon, Inc.

•

Common
$400,000

Plymouth Securities

.Common
Plymouth Bond

Electronics Development, Inc

Lenahan Aluminum Window Corp..
,

133,600

Bros;)

Marache

(Granbery,

$10,000,000

Union Securities & Co.)

Co.)

——

Digitronics Corp.

and Eastman Dillon,

Webber, Jackson & Curtis

(Paine,

(Vermilye

(Simmons

.Debentures

Corp

Acceptance

Blair

Manufacturing Co

...Common

________

Copymation, Inc.

.Common

———

175,000 shares

Co.)

Co.

Barber-Greene

(Bids

—Bonds

Co
be

Invited)

(1922)

The Commercial and

Continued from page 33

sale

the

holders

thereof in the over-the-counter
time. Price—To be related to the
market price at the time of sale. Proceeds—For
general
market from

standing common stock of Davenport Hosiery Mills, Inc.,
of Chattanooga, Term. Office — 2417 North Davidson
St., Charlotte, N. C. Underwriter—R. .S. Dickson & Co.
Charlotte, N. C. Offering — Expected sometime after

time

convertible into

corporate purposes,
writer—None.

including working capital.

————

Colorado Central Power Co.

(11/12)

Oct. 16 filed 66,490 shares of common stock (par $2.50)
to be offered for subscription by holders of outstanding
stock of record Nov. 6, 1959, on the basis of one new

share.

for each

then held; rights to expire on
supplied by amendment*
Pro¬
ceeds—For construction.
Office—3470 South Broadway,
i Englewood, Colorado. Underwriter — The First Boston
<Corp., New York.
Nov.

•

10 shares

Price—To

30.

Columbian Financial Development Co.

Single Payment Investment Plans and $500,000 for SysInvestment Plans and Systematic Investment

tematic

Plans With Insurance. Office—15 East 40th Street, New
York. ; Underwriter
None.
Offering — Expected some
time after Jan. 1, 1960.
—

if Combined Electronics, Inc.
Oct.

;

filed

Commerce Oil

Refining Corp.

Dec.

16, 1057 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in uints

follows: $1,000 of bonds and 48 shares

Price—To be supplied by

amendment.

Proceeds

—

Brothers, New

if Conde Nast Publications, Inc.
Oct.

filed

501,863 shares of common stock (no par)
subscription by common stockholders.
Price—To be supplied by amendment. Proceeds—To re¬
tire $3,500,000 bank loan incurred in connection with the
acquisition of Street & Smith Publications, Inc. last
August. Office — 420 Lexington Ave., New York City.
to be

Conetta Manufacturing Co.

(11/16-20)
Sept. 28 filed 100,000 shares of class A common stock (par
10c). Price—$4 per share. Proceeds—For working capital;
to prepay a bank note; and for machinery and equipment.
Office—73 Sunnyside Avenue/Stamford, Conn. Under¬
writer—Vermilye Bros., New York.
\
Consolidated

Development Corp.
Aug. 28 filed 448,000 shares of common stock, of which
198,000 shares are to be offered to holders of the issuing
^company's 6% convertible debentures, and 100,000 shares
are to be offered to the underwriter, with the remaining
150,000 Aares, in addition to those shares described
above not subscribed for by the debenture holders and
the

underwriter,

Price

—

For the

holders, 75 cents
at

respectively,
shares
per

publicly

offered.

to be offered to the debenture

share, which is equal to the price

which, the debentures

are

convertible

into

common

Stock; for the shares to be offered to the underwriter, $1
per share; for the shares to be offered to the public'/ the
price will be related to the current price of the out¬

standing shares on the American Stock Exchange at the
time of the offering. Proceeds — For general corporate
purposes. Office—Calle 23, No. 956, Vedado,
Havana,
Cuba. Underwriter—H. Kook & Co., Inc., New York.

if Consolidated Diesel Electric Corp. (11/23-27)
Oct. 29 filed $1,000,000 of 6%< convertible subordinated
debentures,

due

1975.

Price

100% of principal
capital and the dis¬
charge of $187,535 of debts. Office—880 Canal Street,
Stamford, Conn. Underwriter—Van Alstyne, Noel & Co.,
amount.

New

Co.

one

share.

for

each

common

stock, to be of¬

of record Sept. 15 on the basis of
share then held.
Price—$4.50 per

Proceeds--To

credited

stated

capital

and

paid-in surplus. Office—12 North Galena Avenue, Freeport, 111. Underwriter—None.
c
v

• Cracker Barrel
Supermarkets, Inc. (11/23-27)
Sept. 25 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2.50 per share. Proceeds—

general corporate purposes.

Office—84-16 Astoria

Blvd., Queens, L. I., N. Y. Underwriter—Diran, Norman
& Co., New York.
Crusader Oil & Gas Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to

stockholders

of record May 15, 1959.
The remaining
shares will be "offered publicly by the under¬
writer on a "best efforts" basis.
Price—To be supplied
by amendment. Proceeds—For repayment of notes and

358,387

for

working capital. Underwrite— To be supplied by

amendment.
Dashew Business

In^C 11/23-27)

Machines,

Oct. 22 filed 150,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment
Proceeds
—For purchasing of
equipment, expansion, ah4 working
capital.
Underwriter — Shearson, Hammill & Co., New

York.

Proceeds—For

—

working

York.

Consolidated

Edison

Co.

New

York, Inc.

(12/1)
Oct. 30 filed

$75,000,000 of first and refunding mortgage
bonds, series Q, due Dec. 1, 1989. Proceeds — For con¬
struction expenditures.

Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050 shares of common stock, of whicl
190,871 shares are to be offered to holders of outstanding
stock
for

Deluxe Aluminum

certificates
stock

the present holders

offered in units of $100;

the preferred stock is to be sold

$25 per share. Proceeds—To be added to general funds
of the association and be used for retiring maturing cer¬

tificates

indebtedness

Office—Kansas City, Mo.

and

for

capital expenditures.
Underwriter—None.

•

Copymation, Inc. (formerly Peck & Harvey Mfg.
Company)
(11/16-20)
Sept. 23 (letter of notification) 100,000 shares of com¬
mon
stock (par 50 cents).
Price—$3 per share. Pro¬
ceeds—To pay

others

and

Western

bank loans and loans to stockholders and

for

working capital. Office—5642-50 North
Avenue, Chicago 45, 111.
Underwriter—Sim¬

& Co., (handling the books) and Plymouth Secu¬
rities Corp., both of New York, N. Y.
mons

Cordillera

Mining Co., Grand Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital stock, ot which
2,179,800 shares are to be offered solely to the holders
of previously-issued options. These shares, together with
the remaining 2,055,000 shares, may be offered for public

Inc.

debentures, and 70,-

Price—For the debentures,

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.
Denab

Laboratories, lnc.**i>WMV*
'
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—
None.

•

held.

Price

new

for each fiv*

To be supplied by amendment.
general corporate purposes. Office —
Albertson, L. I., N. Y. Underwriter—Granbery, Marache
Proceeds

&
•

—

For

Co., New York City.
Dilberts

Leasing & Development Corp.
$4,400,000 (subsequently reduced to $2,500,000) of 20-vear convertible debentures, due July _15,
1979 and 1,056,000 shares
(subsequently reduced to 600,000
shares) of common stock (par lc) to be offered in units
consisting of $50 principal amount of debentures and 12
June

shares of

filed

stock. Dilberts Leasing &
Development
expects to file a new statement next week. Deben¬
common

are

guaranteed

principal and interest by
Dilbert's Quality Supermarkets
Inc., the parent company.
Price
$51.20 per unit. Proceeds
For repayment of
notes; to develop and construct shopping centers and a
as

Chemical

filed-200,000

(12/10 V

capital stock (par-$i).
Proceeds—To purchase stock of

share.

per

Corp.

Dynex, Inc.'

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¬
chase of new
equipment, and expansion. Office
123
Eileen Way,
Syosset, L. I., N. Y. Underwriter—Myron A.
—

Lomasney & Co.> New York.

Offering—Expected

time in December.

some¬

E. H. P. 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

distribute

automobile

breakdown

insurance policies on
highways in the amount of $25
of such breakdown insurance for
the purchase price of
25 cents, and for a
public relations and publicity pro¬
gram.
Office—Hotel Troy
Building, Troy, New York.
Underwriter—John R. Boland &
Co., Inc., New York.

thruways, parkways

and

Offering—Expected during the
ESA Mutual

next two months.

Fund, Inc.

June 29 filed 2,000,000 shares of
capital stock. Price—To
be supplied
by amendment. Proceeds—For investment.

Investment Adviser—Yates, Heitner &
Woods, St. Louis,
Mo.
Underwriter—ESA Distributors,
Inc., Washington,
D. C.
Office—1028 Connecticut
Avenue, N, W., Wash¬
ington, D. C.
'

ECon-O-Veyor Corp.
(letter of notification) 150,000 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds

Sept. 18
mon

—For

advertising and promotion; new equipment, and
general corporate purposes. Office—224 Glen Cove Ave¬
nue, Glen Cove, N. Y.
Underwriter—Plymouth Secu¬
rities Corp., New
York, N. Y. Offering—Expected this

week.
•

Eitel-McCullough,

Oct.

Inc. (11/9-13)
$5,000,000 of convertible subordinated

filed

de¬

bentures due Nov. 1,
amendment.'
current bank
poses.

Calif.
•

1974.
Price — To be supplied by
Proceeds—For retirement of the
company's

borrowings and for general corporate pur¬
Underwriter—Schwabacher & Co.; San Francisco,
-

Electronics

Development, Inc. (11/16-20) "'
Sept. 25 filed 115,459 shares of common stock
(par .10c).
Price—$3.50 per share. Proceeds-—For plant
erection, ad¬
vertising,
research
and
development,.^ and working
capital.
Office
Gill and West College
Streets, State
College, Pa. Underwriter—First Broad Street
Corp., 50
Broad St., New York.
.

—

For

one

Office —Broad

—

•

such stock

basis of

acquisitions.

subsidiaries, for payment of loans, and for
working cap¬
ital.
Office— Culver
City, Calif. Underwriter
Peter
Morgan & Co., New York City.

stock

the

various

Streets, Philadelphia. Pa. Underwriter—None,

Dyna-Therm

Oct.

Digitronics Corp. (11/16-20)
Sept. 25 filed 65,877 shares of capital stock (par 10 cents)
to be offered to the holders of
outstanding shares of
on

for

used

Chestnut

partnership interests, to be
Price—$10,000 per unit. Proceeds—to

offered in units.

new

of principal amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the common
stock, to

•

Electronics

Oct.

Funding Corp.

(letter of notification)

(11/19)*
75 000 shares of

(par 10 cents). Price—$2
general corporate purposes.

per

common

share.*. Proceeds—

Business

—

Sales

and

leaseback of special and staple
machinery and equipment
the-. American electronics
industry. : Office — c/o

for

Darius Inc., 90 Broad Street, New York
4, N. Y.
writer—Darius Inc., New York, N. Y.
•

Under¬

Electro-Sonic

Laboratories, Inc. (11/19)
Aug. 14 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To retire outstanding bank
loan; to increase inventories;
for sales and promotional
activities; to improve produc¬
tion facilities, and to acquire new
and improved tools

and

machinery; for development and research and for
working capital. Office
35—54 Thirty-sixth
St., Long
Island City, N. Y. Underwriter—L.
D. Sherman &
Co.,
New York, N. Y.
—

—

indebtedness and 120,000 shares of pre¬
(par $25). Price—The certificates are to be

one

100%

super-market under

Products,

Oct. 15 filed $330,000 of convertible

tures

subordinated

the basis of

then held.

000 shares of common stock.

Corp.

ferred

four shares

Price—$1.50 per share.
government contracts, reduce ac¬
counts payable, and increase working capital.
Office—
South Dixie Highway, Troy, Ohio.

Underwriter—To be determined

if Consumers Cooperative Association
Nov. 3 filed $5,000,000 of 5^2% 25-vear

of the record date

Proceeds—To finance

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
Dec. 1.

each

per

face

Drexelbrook Associates
filed $2,000,000 of

May 22

Price—$3

Sept. 29 filed 100,000 shares of
to stockholders

;■

offered for

Underwriter—None.

new

then held.

;

«jof stock and $100 of debentures and nine shares of stock.
construct refinery. Underwriter—Lehman
York. Offering—Indefinite.

1959, at the rate of four

Cornbelt Life

Price—At

amount.
Proceeds—To reduce
payable, to purchase facilities and
equipment, and
working capital. Office—401 E. Boyd
St., Norman,
Okla. Underwriter—None.

but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.

For

shares ol common stock. Price—
$2.50 per share. Proceeds—For general corporate pur¬
poses, including expansion, new product development,
and working capital. Office—135 S. La Salle Street, Chi¬
cago,
111.
Underwriter—David , Johnson & Associates,
Inc., Indianapolis, Ind., on a ''best efforts" basis.
800,000

15,

10 shares

stock at $4 per share
up to and

common

for

Urfsubscribed shares may
be offered publicly.
Price—$4 per share. Proceeds—
To increase capital
and surplus.
Underwrite©-—None,

fered

Aug. 14 filed $1,000,000 of Plans for Investment in
Shares in American Industry, of which $500,000 was for

Sept.

Thursday, November 5, 1959

notes

.
.

for each

including Nov. 1,-. 1962; thereafter at $8 per share
and including Nov.
1, 1965 and thereafter at $12

Under¬

Cornbelt Insurance Co., Freeport, III.
Sept. 29 filed 200,000 shares of common stock to
offered
for
subscription by common stockholders
record

"Nov. 20.

financial Chronicle

existing purchase contracts

and for

working capital.

Name Changed — Company formerly
known as Dilbert's
Properties, Inc. Office—93-02 151st
Street, Jamaica, N. Y. Underwriter—Ira Haupt &
Co.,
New York.
Offering—Expected in about 30

•

Enfio

Corp.

Sept. 30

filed

(11/9-13)
125,000 shares of

common stock
(par 10
cents). Price—$3 per share. Proceeds—For
general cor¬
porate purposes.- Office—Maple Shade, N. J. Underwrit¬
ers— D.

Gleich

Co.

and

Aetna

New York.

Securities Corp,, both

days.

Diversified
Communities, Inc.
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
Cantor
be

Goldman

Builders, Inc., with the balance

used

as working
capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O.
Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.

Don Mott

Associates, Inc.

Oct. 27 filed 161,750 shares of class
B, non-voting, com¬
mon stock.
Price—$10 per share.
Proceeds—For gen¬
eral

corporate purposes, including payment on a build¬
ing and the financing of loans.
Office—Orlando, Fla.
Underwriter—Leon Sullivan,

Philadelphia,

"best efforts" basis.

Pa.,

(

Dorsett

Oct.

Laboratories, Inc.

(letter

convertible

notification)

subordinated

$160,000 of

debentures.

10-year

Debentures

6%
are

Equity Annuity Life Insurance Co. "
filed $1,000,000 of Variable
Annuity Policies.

April 21

Price—No
contracts

contracts.
16th

less

and

than
no

$120

less

Street, N.

None.

than

Proceeds—For

year

$1,500

for

annual

premium

single

premium

for

investment, etc.

W., Washington, D. C.

• Fall River Electric Light Co.

Office—2480

Underwriter—

(12/8)

Oct. 22 filed 30,000 shares of
preferred stock (par $100).
Proceeds—To be used for
prepayment of the company's
short-term bank loans which
Oct. 19,

amounted to $2,800,000 at
1959 and the balance will be used for
construc¬

tion purposes.

Underwriters—To be determined
by com¬
petitive bidding. Probable bidders: Stone & Webster Se¬
curities Corp.; Kidder,
Peabody & Co. and White, Weld
& Co. (jointly); Eastman
Dillon, Union Securities & Co.
Bids—Expected to be received up to 11 a.m.
(EST) on
Dec. 8, 1°59 at the offices of the
company, 49 Federal
Street, 8th Floor, Boston, Mass."" *

Volume

190

Number 5896

The Commercial and Financial Chronicle

Faradyne Electronics Corp.
Sept. 1 filed 230,000 shares of common stock (par-five
eents) of which 200,000 shares are to be publicly offered.
Price—$5 per share.
Proceeds—For general corporate
purposes; -including plant expan^on, improvement and
equipment.
Office — 744 Broad St., Newark, *N. J.
Underwriters
Netherlands Securities Co., Inc.-(han¬
dling the books) and Herbert YoungCo., Inc. (jointly);
Morris Cohon & Co.; Schrijver & Co.; Richard Bruce &
Co., Inc., all of New York.
Offering.—Expected in No¬
•

„

•

vember.

Financial

Industrial

Price-—At market.

Income Fund, Inc.
shares of common capital stock

Proceeds—For

investment.

Office—

950

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
•

First Financial

Corp. of the West (11/9-13)
shares of capital stock (without
par valqe), of which 100,000 shares are to be offered for
the account of the selling stockholders, and 20,000 shares
will be sold for the company's account. Price — To be
supplied by amendment.- Proceeds—To prepay the re¬
maining balance of and accrued interest on an outstanding term loan. Underwriter—William R. Staats & Co.,
Los Angeles and San Francisco, Calif.

SepU 28 filed

120,000

First Northern-Olive

Investment Co.

shares of

stock.

common

Probable

amendment,.

Halsey, Stuart & Co. Inc.; Lehman
Merrill Lynch, Pierce, Fenner & Smith Inc.
White, Weld & Co. (jointly); Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler and Eastman Dil-

lon^ Union Securities & Co. (jointly). Bids—Expected |o

general

be received up to 11 a.m. (EST) on Nov. 24 at the office
Of The Hanover Bank, Room A, 70 Broadway, New York

15, N. Y.

—

Gulton

Industries, Inc. (11/24)
60,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

;Qct.

G. H. Walker

Co., both of New York City.

•

Harman-Kardon, Inc. (11/23-27)
Oct. 22 filed $600,000 of 6%% subordinated convertible
debentures due December 1969, and 196,400 shares /of
common stock
(par 25 cents), of which the debentures

to be offered for the account of the company

are

Office—212 Durham Ave.,
Underwriters—Lehman Brothers and

Metuchen, N. J.

(letter of notification) 225,000 shares of com-'
capital stock (par 25 cents).
Of the total, 195,000

filed

general corporate purposes.

General Underwriters Inc.

April 6
mon

bidders:

and

Price—To be

Proceeds—For

and 30,000 shares for a

selling stockholder. Price—$1 per
and improved
merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark.
-

share. Proceeds—For furniture inventory

to be offered for the account of the

are

(non-voting) (par $1). Price—To be supplied by amend¬
ment. Proceeds—For general

•

Giant

Oct.

Food

filed

Inc.

(11/9-13)

200,000

class A

common

stock

conversion. Proceeds—For reduction

Olive

New York.

—Milton D. Blauner &

Statement effective

Oct. 9.

First United Life Insurance Co.

Sept.

filed

offered to
rate

new

rights to expire
For

158,236

common

one

company

common

being

stock,

shareholders of record Oct. 15 at the

on or

each four shares

for

about Dec. 2. Price—$5 per share.
and expansion. Office — 475-79

Broadway, Gary, Inch

Underwriter—None.

it Formula 409, Inc.
Oct, 29 filed 300,000 shares of common stock (no
gar).
Price—$1.50 per share. Proceeds—For advertising, re¬
duction of indebtedness, bottling equipment, payment of
$44,000 for acquisition of formula 409, a liquid degreaser,
and office equipment.
Office—10 Central Street,s West

Springfield, Mass. Underwriter—DiRoma, Alexik & .Co.,
Springfield, Mass.
>
•

Frantz

Manufacturing Co. (11/12)
Sept. IP filed 190,953 outstanding shares of common
stock, (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders.- Business—Company
is engaged in the design, development, production and
distribution

builders'

hardware, primarily overhead
type garage door hardware. Office—301 West 3rd St.,
Sterling, 111. Underwriter—Blair & Co., Inc., New York.
•

Frontier

Refining Co.

(11/16-20)

Oct.

16 filed $6,000,000 of 6% convertible subordinated
debentures dated Nov. 1, 1959 and due Oct. 31^1959.
Price—At 100% of principal amount plus accrued inter¬
est

from

Nov-.

purchase

1, 1959 to date of
the
common
stock

delivery. Proceeds—
of
Western
States

Refining Co. Office—4040 E. Louisiana Avenue, Denver,
Colo. Underwriters—J. A. Hogle & Co., Salt Lake City,
Utah, and Garrett-Bromfield & Co., and Peters, Writer
&

Christensen, Inc., both of Denver, Colo.

^ Gas

Hills

Uranium Co.

the

be offered

rate-

to holders of the

one

new

for

outstanding common
20 shares held;

each

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

selling stockholders, of which number 655,500
represent holdings of management officials and
affiliated persons. Price—To be supplied by amendment.
Proceeds—For general corporate purposes, including the
shares

repayment

indebtedness.
Office — 604
Underwriter—None.

18th

South

Street, Laramie, Wyo.
•

Gateway

Airlines,

Inc.

Gibraltar

Financial

Corp.

California

—

New

York.

mate

Medat Packing Corp.
18 filed 572,500 shares of common stock

June
(par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the

Gold Medal Studios,
per

bentures,
common

due

1974,

offered

stockholders of record

de¬

for

subscription by
Nov. 20, 1959 (with a 14

standby),

each

on the basis of one new debenture for
shares then held; rights to expire on or about

Dec. 4. Price—To be

supplied by amendment. Proceeds—
gfeneral corporate purposes, including the reduction
of indebtedness.
Office
4401 Crenshaw Blvd., Calif.
Underwriter—Lehman Brothers, New York.
—

Green

Oct.

River Production Corp.

Feb.

609, Santurce, Puerto Rico.

Co., Inc., Avenida Condado

Price—To

be supplied by amendment.
Proceeds—For
construction, ^including the payment of short-term loans
incurred for this purpose. Office—33 Elizabeth Street,
Derby, Conn.
Underwriters — Allen & Co., New York,
and Bacon, Whipple & Co., Chicago, 111. Offering—Ex¬
pected sometime this month.

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
registered brokers and dealers who are NASD members.

Hydromatics, Inc.

Co., Inc., Bowling Green, Ky.

Growth Fund of
4

filed

cents).

Price—At

market.

of common stock (par 10
Proceeds—For investment

Connecticut

Investment

Advisor

Washington,

Avenue, Washington, D. C
Advisory
Service,
Underwriter—Investment Manage¬
—

Investment

Associates, Inc., Washington, D. C. The statement

became effective July 24.

Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below.
Gulf States

Utilities Co.

(11/24)

Oct. 13 filed $16,000,000 of
due 1989.
Proceeds — To

series A first mortgage bonds
pay off existing short-term
notes due Dec. 1, 1959, issued under revolving credit
agreements to provide funds for construction purposes,
of

which it is estimated $6,000,000 will be outstanding
prior to the date of sale of the new bonds, and the bal¬
will

struction

be used
urogram

to carry

and

forward the company's

for

other

are

stock (par $1), of

to be offered for the account of

offered for the
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,
company, and 25,000 shares are to be
accounts of the present holders thereof.

both of New York.
I C Inc.
June 29 filed

600,000 shares of common stock (par $1).
Proceeds—To further the corpo¬

Price—$2.50 per share.

the preparation of the concentrate
enfranchising of bottlers, the local and national pro¬
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.
and

motion

Colo.

America, Inc.

250,000

Office —1825

ance

(11/10)

rate purposes and in

cent Securities

writer—Caribbean Securities

Service Co.

filed

76,642 shares of common stock (par $15)
be offered for subscription by common stockholders
the basis of one new share for each five shares held.

For

Field, Islip. L. I., N Y Underwriter—Dunne & Co., New
York. Offering—Expected today (Nov. 5).

-v

Oct. 20 filed 105,000 shares of common

corporate purposes, including the purchase of airplanes,
parts, and equipment, the retirement of debt, and
increase of working capital.
Office — MacArthur

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.
Office — Santurce, Puerto Rico.
Under¬

Housatonic Public

which 80,000

the

Finance Corp.

•

stock.

Oct.

Lakes

Great Western Financial Corp. (11/20)
Oct. 19 filed $9,998,800 of convertible subordinated

ment

Bros. Truck Co.,

Inc.
(letter of notification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds—Tt
pay existing liabilities; for additional
equipment; ami
for working capital.
Office—East Tenth Street, P. O.
Box 68, Great Bend, Kan.
Underwriter—Birkenmayif
& Co., Denver, Colo. Offering—Expected shortly.

it Granco Products, Inc.
Oct. 21 (letter of notification) 42,860 warrants arid 60,000
shares of common stock (par 50 cents). Price—Of war¬
rants, at the market (approximately $2.50 per warrant);
of the stock, at the market
(approximately $4.50 per
share). Proceeds—For general corporate purposes. Office
-36-17 20th Ave., Long Island City, N. Y. Underwriter—
John R. Boland & Co., Inc., New York, N. Y.

day

Hickerson

March 11

purposes, including the purchase of additional
equipment, investing in properties in the enter¬
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.

spare

General

•

tainment

1960.

Hawthorne, Calif.
Underwriter—
Angeles, Calif. Offering—

Expected in late November.

porate

Bowling Corp.
-Aug. 31 filed 120,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
general corporate purposes, including the development
of
bowling lanes, bars, and restaurants on various
Michigan properties. Office—6336 Woodward Ave., De¬
troit,: Mich. Underwriter—Straus, Blosser & McDowell,
Chicago, 111. Offering—Expected sometime after Jan. 1,

Blvd.,

William R. Staats & Co., Los

studio

Great

filed

Hawthorne

common stock (par 10
Proceeds—For general cor¬

share.

mon

(letter of notification) 200,000 shares of common
(par 50 cents). Price—$1.50 per share. Proceeds—
For expenses for exploring for oil and gas. Office—212
Sixth Ave., South, Nashville, Tenn. Underwriter—Cres¬

both «of New York.

Financial Corp.
(11/30-12/3)
165,000 shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Office — 301 South
Oct.

Sept. 18 filed 500,000 shares of

Price—$1

conditions.

Hawthorne

Inc.

stock

Corp. (11/5)
Oct. 2 filed $10,000,000 of 6%% subordinated debentures
due Nov. 1,
1974, with warrants for the purchase of
common
stock, to be offered in units consisting of a
$1,000 debenture and one common stock purchase war¬
rant.
Warrants are detachable after Feb. 1, 1960.
Price
—To be supplied by amendment. Proceeds—For gen¬
eral corporate purposes. Office — 1105 Hamilton St.,
Allentown, Pa. Underwriters—Paine, Webber Jackson &
Curtis, and Eastman Dillon, Union Securities & Co.,

market

110,000 by certain stockholders; 12,300 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. Offering —
Expected in late November.
company;

General Acceptance

short-term bank loans, expected to approxi¬
$4,000,000, with the balance to be used for general
corporate purposes.
Office — 4400 W. National Ave.,
Milwaukee, Wis. Underwriter—The First Boston Corp.,
New York.
Offering—Indefinitely postponed due to

unsecured

Gold

cents).

Co., Inc., New York City.

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

outstanding capital stock..
To be supplied by amendment.
Proceeds — To
selling stockholders. Office—9111 Wilshire Blvd., Bev¬
erly Hills, Calif. Underwriter—Kidder, Peabody & Co.,

Aug. 31 filed 400,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For general

•

corporate purposes including new plant and
equipment.
Office—Westbury, L. I., N. Y. Underwriter

19 filed 325.000 shares of

Price

of bank loans and

general

(11/16-20)
Oct.

•

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 byofficers and/ or directors, affiliates, and associates of the
issuing company. Of the shares to be sold, 415,000 shares
are

•

then held;

reserves

company

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

corporate purposes. Office—
Landover, Md. Underwriters — AucKincloss, Parker &
Redpath, Washington, D. C., and Kidder, Peabody & Co.,

nix.

issuing

and

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other Northern-

companies, numbered "second" through "eighth."
Price—$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North Central Ave., Phoe¬
nix, Ariz. Underwriter—O'Malley Securities Co.. Phoe¬

Brothers;

supplied
corporate pur¬
poses, including the reduction of indebtedness and the
purchase and installation of machinery and equipment.
Address
P. O. Box 8169, New Orleans, La.
Under¬
writers—H. M. Byllesby & Co., Inc., Chicago, 111.; How¬
ard, Weil, Labouisse, Friedrichs and Co., New Orleans,
La., and Mason-Hagan, Inc., Richmond, Va.
by

July 22 filed 1,000,000

.General Flooring Co., Inc.
Sept. 14 filed $l,ouO,UU0 of 6^% debentures, due Oct.
1, 1969, and 270,000 shares of common stock, to be of¬
fered in units of $100 principal amount of debentures
and

—

(1923)

corporate

con¬

•

Indiana Gear

Works, Inc.

Oct. 8 filed 100,000 shares of common

stock (stated value

$2) of which, 25,000 shares are to be offered to em¬
ployees, *hnd the remaining 75,000 shares are to be of¬
fered to the public. The public offering will include any
shares not subscribed for by the employees.
Price—To
be supplied by amendment. Proceeds—To partially retire
bank loans, which were used for acquisition of fixed
assets and working capital. Office—1458 E.^ 19th St., In¬
dianapolis, Ind. Underwriter—City Securities Corp., In¬
dianapolis. Offering — Expected in about two to three
weeks.

Industrial
June

Leasing Corp.
of notification) $200,000 subordinated
debentures ($1,000 denomination) and
subordinated convertible 6% debentures ($500

$50,000

„

(letter

convertible

denomination).
ceeds—For

Price—100%

working capital.

of principal amount. Pro-<
Office—522 S. W. 5th Ave-

purposes.

Underwriter—To be determined by competitive bidding.

Continued on page

(1924)

The Commercial and Financial Chronicle

Continued from page 35

•
.

Portland

nue,

4. Ore.

Inland Western

June 9.

was

Loan &

Corp.
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.,
Phoenix, Ariz.
Underwriter—The underwriters, if any,
will be named by amendment.
♦

Integrand

Oct.

filed

Corp.
85,000 shares of

•

Price—$3

shares of

Electric

Calif.

Office

1105

County

Road,

San

Florida

Carlos,

(par 10c).

share. Proceeds—To be added to working

Chicago, 111.

.' :V-'/

•

New York

City. Offering—Expected

cents

per
ment and

'Inter-Island Resorts, Ltd.
•Hept.'lO filed 99,000 shares Of common stock (par $3) be¬
ing offered first to stockholders on the basis of one new
Oct.

chare for each lour shares held of record

10,

1959;

Nov. 30. Price—$5.50 per share. Pro¬
a new hotel at Kalapaki Bay,
the Island of Kauai. Office—305 Royal Hawaiian Ave.,

rights to expire

Bank, Washington, D. C.
I>ec. 29 filed $5,000,000 of notes (series B, $500,000, twoInternational

common
common

C, $1,000,000, four-year 4% pe>
unit; and series D, $3,500,000, 6-year, 5% per unit). Priw
—100% of principal amount.
Proceeds — For workinj
capital. Underwriter—Johnston, Lemon & Co., WaibIngton, D. C. Offerinr—Indefinitely postponed.
International

Aug. 11

funds

general

corporate

pay

Marine

and

Loewi

Co., all

* Mercantile

Kayser-Roth Corp.

share for

new

share.

per

Oct.

debentures.

★ Merry

(par $1). Price—To

facilities.

market

price

Ave., New York. Underwriter—Hemp¬
hill, Noyes & Co., New York.
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,shares.

Price—Of

30,717 shares, $115 each; and of
•51,000 shares, $116 each. Proceeds—To selling stock¬
holders. Office—Anchorage, Ky.
Underwriter—None.

Kiiroy ,(W. S.) 1960 Co.
June 8 filed $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.
Kittanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common stock, to be of¬
fered by subscription to holders of
outstanding common
etock

each

the basis of

held.

approximately 0.212
Price—$25 per share.

new

shares for

Proceeds—In

part to repay a bank loan in the amount of $450,000 rep¬
resenting funds acquired for general modernization, im¬
provement, and expansion. Underwriter—None.

—

then

general

held.

Price —$10

corporate

repurchase of notes under its

purposes,

Price—90%

Brothers

Brick

$7.80

per

face

Co.

common

share. Proceeds

Office—415

J^tropolitan

repur¬

(par $2.50).

—

Masonic

•

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
stock (par 10 cents) to be offered in units ol
$10,000 principal amount of debentures and 5,000 com¬

common

mon shares.
An additional 138,000 shares
may be issued
in connection with the
company's restricted stock option

Price—$10,500

per

unit.

Proceeds—To

purchase

machinery, equipment and

other fixed assets, for operat¬
ing expenses, and the remainder for working
capital
Office—4061 Transport St., Palo Alto, Calif. Underwriter
—None.
Financial Adviser—Hill. Richards &

Co., Inc.,

Angeles, Calif.

Statement

Micronaire Electro Medical
(11/16-20)
16

filed

debentures

200,000

effective

Oct.

Products

common

26.

debentures, series A, due Oct. 1, 1969.

converted.

Price—At face

derwriter—Eastern Investment

Narda

June

stock

(pqr

amount.

Proceeds

Corp., Manchester, N. H.

Microwave

Corp.
filed 50,000 shares of

common stock
(par 10
and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached

cents)

warrant

entitling the holder to purchase
stock

common

includes

reserved

for

one

additional

additional 10,000
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 &

York.

National
27

Bellas

Hess, Inc.
$5,318,800 of convertible subordinated de¬

filed

due

stockholders
shares

Co., Inc., New

Indefinitely postponed.

Oct.

the

1984,

offered

common

basis of $100 of debentures for each

held.

Price—To be supplied by amendment.general corporate purposes, including the
possible increase of investment in the issuing company's
Proceeds—For

insurance

Bros.

subsidiary; Office—14th Avenue & Swift
North Kansas City, Mo.
Underwriter — Stern
Co., Kansas City, Mo.

National Citrus Corp.

(letter of notification) 150,000 snares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬

April 20

stock.

mon

For

new

dress—P.

R. F.

Box

1658,

Lakeland.

Fla. :

Underwriter—

Campeau Co., Inc., Detroit, Mich. Statement to be

amended.

National

Industrial

Minerals

Ltd.

Aug. 4 filed 150,000 shares of common stock (no par).
Price
$1 per share.
Proceeds — To retire indebt¬
—

edness for construction of plant and for other liabilities,
and the remainder will be used for operating capital.
Office

Laird

—

Regina, Saskatchewan, Canada. Underwriter—
Rumball Ltd., Regina, Saskatchewan, Canada.

ic National Motels,
stock

cents) and 50,000 one-year warrants for the purchase of
such stock at $3 per share, to be
offered in units of 100

convert¬

the general funds of the company. Office—c/o
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
Un¬

Oct.

Corp.

---

—For

Street,

Sept. 28 (letter of notification) 99,933 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For working capital.
Office—964 Dean St., Brooklyn,
N. Y. Underwriter—Lee
Co., New York, N. Y.

Oct.

Mhe

life

Corp.

-- ^

capital.

are convertible at any time through Oct.
1,
into class A non-voting common stock (par $5) at
rate of 100 shares of such stock for each $500 of

bentures,

stock

Los

1968

Oct.

(12/1)

working

Debentures
.

The statement also

stock

- '

Pro¬

additional

(letter of notification) $300,000 of QV2%

(11/9-13)

plan.

ible subordinated

Underwriter—

amount.

Telecommunications

for

Mutual Credit Corp.

Office —333 Montgomery
Tile

proceeds

share.

Underwriter—None.

160,000 shares of

its

use

Office—4383

working capital.

Calif.

one

For new production
Bldg., Augusta, Ga. Un¬
derwriter—Johnson, Lane, Space Corp., Atlanta, Ga.

the N. Y. S. E. at the time the offering begins. Proceeds
—To Harrison Factors Corp., the selling stockholder.
Office—425 Fifth

and

(par $1), to
basis of

Acceptance Corp. of California
(letter of notification) $30,000 of 5V2%
12-year

Price

000

Proceeds—For

Oct. 26 filed

the

ceeds—For working capital.
Street. San Francisco, Calif.

(11/10)

for

reserve

Oct.

Milwaukee.

Boulevard, Los Angeles,

capital

Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,000 shares of common stock (par $10) in
joint registration with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage
common and one share of Guaranty common. Proceeds—
Mortgage will use its proceeds fo ^expansion; Guaranty

•

each five

including expansion

Oct. 5 filed 375,000 shares of outstanding common stock

be related to

Oct. 1 filed 301,177 shares of
common stock
be offered to holders of such
stock on the

None.

944

Underwriter—Myron A.

Mo.

Curtis,

+ Johnny-On-The-Spot Central, Inc. (12 15)
(letter of notification), 30,000 shares of common

22,

Mayfair Markets

Scarsdale, N. Y. Underwriter—Richard Bruce & Co., Inc.,

ma¬

—

Office—11236 Georgia Avenue, Silver
Spring, Md. Underwriter—There is no underwriter: as
such, but Adrienne Investment Corp., an affiliate of the
issuing company, will act as sales agent, for which it
will receive a selling commission of 7%.
;

general

(11/23-27)
filed $5,000,000 of convertible
debentures, due
1, 1974.
Price—To be supplied
by amendment.
Proceeds—For general corporate
purposes, including the
provision of funds to other banks now controlled
by the
issuing corporation. Underwriters—Robert W. Baird &
Co., Inc. (agent), and Paine,
Webber, Jackson &

Central Ave.,

chase agreements.

Underwriter—None.

Mew York, N. Y.

tain

Corp., Milwaukee, Wis.

Bandini

830

purchase new equipment and
working capital.
Office

used

Office—(of both firms) 606 West Wisconsin Ave., Mil¬
waukee, Wis.
/
•

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.

—

Oct: 16 filed $3,000,000 of second
mortgage notes and
accompanying repurchase agreements, to be offered in
$3,000 units. Price—From $2,000 to $4,000 per unit. Pro¬
ceeds—To purchase other second trust notes and to main¬

public. Price—To stockholders.
share; to the public, $3 per share/ Proceeds—
note, purchase land and to construct a build¬

per

Oct.

share. Proceeds—For

will

ceeds—For general corporate purposes. Office—17 E. 71st

per

Dec. 9.

Montgomery Mortgage Investment Corp.

Ave., Miami,
Co. Inc., New York. Offering

Nov.

Oct. 28

(EST)

a.m.

$2.70

•

Underwriter—None.

;

bonds, due
general funds, to be

and the remainder to the

(par $25).

(12/9)mortgage

Lomasney & Co., New York."

3rd

ing;- Office—9929 Manchester Road, St. Louis
Underwriter—None.
rv

Brice—$27.50 per share, payable in cash or State of Israel
Independence Issue or Development Issue bonds.
Pro¬

Office

for

added

a price to be related to the market.
Proceeds— .*!
liquidate indebtedness in- the amount of $150,000.

chinery and

notification) 100,000 shares of common
(par $1) to be offered lor
subscription to stock¬
holders at the rate of one share for each
two shares held,

—

purposes.

used

first

..Halsey Street, Brooklyn, N. Y.

CotpT

Israel

-general corporate

$4,000,000

with the remainder to

stock

Irando Ofl & 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 corporatepurposes.
Office—1950 Broad St., Regina, Sask., Can
Underwriter
Laird & Rumball, Regina, Sask., Can.

«tc)ck (par 25 cents). Price—$5

and

company

Office—20

Power & Light Co.

filed

Proceeds—To

stock, at
To

initial

shares of common stock (par 40
;cents). Price—For the
debentures, 100% of principal amount; for the common"*

Oct. 22 (letter of

...

Street, New York City.

stock at

common

then

Proceeds—m

★ Manchester Insurance Management &
investment

office
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
pf Washington, D. C., and Swesnick & Blum Securities
Corp.
\ ^
•;

common stock

the

Underwriter—Blair &
—Expected this Fall.

14 filed 500 Beneficial Trust Certificates in the
Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H

Aug.

Trust.

Development Corp.
Sept. 22 filed 200,000 shares of

purposes.

Fla.

Investment Trust for the Federal Bar Bldg.

St., N. W., Washington, D. C., and construct
building thereon.
Office—Washington, D. C.

share of such

one

new

^Mohawk Business Machines Corp. (11/30-12/4)
Oct. 29 filed $600,000 of 6%
10-year subordinated con¬
vertible debentures, due 1969, and
30,000 outstanding

Cape Canaveral area; the balance will be added to the

Gulfport, Miss.

■

purchase

supplied by amendment.

and/or

one

Main

received up to 11

price of $11 per share. Price—For preferred, at
par; and
for class 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
on notes
acquired by members of the Magnuson
family
in the transfers of
subsidiaries and properties to the
company; $106,000 will be used to close certain
options
and purchase contracts
covering lands in the Melbourne-

Tuna Corp. x
•
" 4
(letter of notification) 475,000 shares of class
A common stock (par 50 cents).
Price — $1 per share
Proceeds—For equipment and working capital.
Offic#
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.

stock, par $1, with

common

bidding. ,4
Co. Inc.; The First
Bids—Expected to be !

entitling the registered holder

jrear; 3% per unit; series

common

stock purchase warrants. Each share of class
A
stock carries one warrant

the basis of

Probable bidders: Halsey, Stuart &
Boston Corp.;
White, Weld & Co.

Ltd., Regina, Saskatchewan, Canada.:

shares of class A

Honolulu, Hawaii. Underwriter—None.

preferred

stock, to be of¬
preferred

to retire certain short-term bank loans
incurred in <*
with the company's construction
program. Underwriter—To be determined by competitive

Magnuson Properties, Inc.
June 29 filed
500,000 shares of class A common stock
(amended on Aug. 24 to
150,000 shares of 6Y2% cumu¬
lative convertible preferred
stock, par $10), and 150,000

ceeds—For construction of

common

used

—

land Securities

outstanding

connection

May 11 filed 390,000 shares of common stock. Price—60
share.
Proceeds
For exploration, develop¬
acquisitions. Office—5 Cobbold Block, Saska¬
toon, Saskatchewan, Canada.
Underwriter — Cumber¬

some¬

1989.

M. & S. Oils Ltd.

time after Nov. 20.

three

Office—52

* Missouri
Oct.

—-

Broadway,

the

pur-

>//.' ./

St., Woodbridge, N. J. - Under¬
writer—Kidder, Peabody & Co., Inc., New York.
*

their

....

each

Price—To

poses.

—

capital in order to enable company to exercise options
on motels
and/or parcels of land. Office—Martinsville,
Va. Underwriter
G. Everett Parks & Co., Inc., 52 *

per

To repay bank loans incurred for
construction purposes,
with the balance to be used for
general corporate

(11/30-12/4)

(11/16)
85,035 outstanding shares of
class A stock (par $5). Price—To be
supplied by amend¬
ment. Proceeds—To
selling stockholders. Office—Melrose
Park, 111. Underwriter
Cruttenden, Podesta & Co.,
all

29,534 shares

holders

stock of record Dec. 2

for

held.

St., Miami, Fla. Underwriter—Plymouth
Corp., Miami.

filed

Lindberg Steel Treating Co., Inc.
12

common

—2546 S. W. 8th

Oct.

Price—$275

ir Middlesex Water Co.
Oct.

fered

Sept. 28 filed 203,476 shares of common stock (par $1).
Price—$4.50 per share. Proceeds—For expansion. Office
Bond & Share

stock and 25 warrants.

common

ing Corp., New York.

Underwriter—None,

Life Insurance Co.

Thursday, November 5,. 1959

Proceeds—For general corporate
purposes, includ¬
ing the discharge of indebtedness, the
expansion of
sales efforts, and for
working capital. Office—79 Madison
Avenue, New York City. Underwriter—General Invest¬

Co.

—

unit.

for

stockholder.

common

Metals, Ltd.
133,000 shares of common stock

per

(11/5)

Aug. 31 filed 10,000 outstanding shares of class B com¬
mon stock.
Price—$83.31 per share. Proceeds—To selling

Intercontinental

Oct. 7 filed

Lenkurt

Corp.

derwriter—Plymouth Bond & Share Corp., Miami, Fla.

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—Westtoury, L. I., N. Y. Underwriter—DiRoma, Alexik & Co.,
Springfield,'Mass..
i
.v.-■ ;V ■
..v /■;'/'■
>■■.

Window

each two shares held on Nov. 4,
1959;
rights to expire on or about Nov. 19. Price—$4 per share
to stockholders; $5 to public. Proceeds—For
inventory
and for working capital.
Office—Jacksonville, Fla. Un¬
new

Finance

Aluminum

July 28 filed 157,494 shares of common stock (par 50c),
being offered initially to stockholders on the basis of one

Underwriter—May & Co., Port¬

land, Ore. Clearance date

Lenahan

(lettei

Inc.

notification) 3,500 shares of common
Price — $75 per share. Proceeds—For

(no par).
guarantee of a lease of Howard Johnson. Motor Lodge in
Prince Georges County, Md., operating expenses and ac¬
quisition of a third motel. Office—59 S. Park Avenue,

Longmeadow, Mass.

Underwriter—None.

Volume

190

Number

5896

The Commercial and Financial Chronicle

loans and for investment purposes.

Office—513 Interna¬
Mart, New Orleans, r La. Underwriter —
Assets Investment Co., Inc., New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept. 2, to deter¬
mine whether a stop order should be issued suspending
the offering.

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—Tenpey Securities Corp.
.

National

tional

StandarcLlElecironics, Inc.

(par 10 cents).
Price—$1
For general corporate purposes.

per

share.

Ovitron

common

Union

Fire

Pa.)

•

Co.

•

(Pittsburgh*

National Video Corp. (11/16-20)
19 filed 283,307 shares of class A

stock

Each certificate for class A shares will bear

common

Pacific

Oct.

—

York.

reduce, indebtedness.

St.

$3,000,000

Under¬

sum

writer—To be determined by competitive bidding. Prob¬
bidders:- Lehman
Brothers; Equitable Securities

rants.

notes,

Corp.;

Kidder, Peabody & Co.; Lee Higginson Corp.,
White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith Inc., and Eastman Dillon, Union Secu¬
rities & Co. (jointly). Bids—Expected to be received on

Dec. 9.

•

New

York

Electric

State

Gas

Corp. (11/20)
Oct. 21 filed 467,247 shares of common stock, (no par),
to be offered to holders of outstanding common stock
of record Nov. 20

the basis of

one

new

share for each

for construction.

The First Boston
Co. and

Smith Inc.

Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, to
be offered for subscription by holders of outstanding
stock in the ratio of two
held.

Price—$2

new

subscribed for at $2 per share.
•

—

•

i, ••*---

---

Northern

Properties, Inc. (1116-20)
Sept. 8 filed 150,000 shares of common stock (par $2.50).
Price—$5 per share. Proceeds—To acquire and develop
; various properties in New York State. Office—Hartsdale.
N. Y.
Underwriter—Candee & Co., New York; and
'Peters, Writer & Cbristensen, Inc., of Denver, Colo.
• Nucleonics Chemistry & Electronics Shares, Inc.
Nov. 2 filed (by amendment) an additional
90,000 shares
,pf stock. Price—At market. Proceeds—For investment.

Office—Englewood, N. J. Underwriter—None.

warrants

r
:
■

attached.

Office—Min¬
Underwriter—Woodard-Elwood & Co.,

neapolis, Mirm.
Minneapolis, Minn.
•

•

Oak

Valley Sewerage Co. (11/9-13)
.June 30 (letter of notification) $145,000 of 5M>% first
: mortgage bonds series of 1958.1 Price—At par.
Proceeds
.—To repay to Oak Valley, Inc. a portion of the cost of
: construction of
sewerage collection and disposal system
and to pay the costs and expenses of financing. Office
—330 Main St, Mantua, N. J.
Underwriter—Bache &
Co., Philadelphia, Pa.
Oak Valley Water Co. ((11/9-13)
(letter of notification) $125,000 of 5V2% first
mortgage bonds series of 1958. Price—At par. Proceeds

i-i

June 30

•

—To

repay

construction

Oak
of

Valley, Inc. a portion of the cost of
supply and distribution sys¬

the water

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,
N. J.
Underwriter
Bache & Co.,

Philadelphia, Pa.

—

-^Occidental Petroleum Corp.
Oct.

rate of

one

new

share for each

shares held.

The

re¬

maining shares are to be offered to a group of individuals, 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 Parkbr Petroleum Co. Office—8255
Beverly

Boulevard, Los - Angeles,

Calif.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of
cents.

Price—$2

per

share.

Underwriter—None.

stock (par 35
Proceeds—To retire bank
common

cents

1994.

Proceeds—For

filed

$15,000,000

first

construction.

■>

mortgage bonds, due
Underwriter—To he-

be»

Fire

Casualty Co.
capital.

working

Prudential Commercial

Corp.
(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 $388,000 of 6% subordinated debentures, due July

Oct.

Industries, Inc.

filed

With the exception of 151,500 shares of class B
allocated to the organizers of the company at
are to be offered to the public in unitsof $4,000 of debentures, 500 class A shares, and 500 class?
B shares. Price—$5,000 per unit. Proceeds—For invest- 1
ment in the securities of its subsidiary, Puerto Rice
Meat Packing Co., Inc., which will use the funds, esti¬
mated at $600,000; as operating capitaL
Address—P. O
Box No. 622, Little Rock, Ark. Underwriter—None.
I, 1971.

common

par,

Walden, Harris & Freed, Inc., New York.

the securities

^ Quarterly Distribution Shares
Nov. 3 filed (by amendment) an additional 200,000 shares
of common stock. Price—At market. Proceeds—For in¬
vestment. Office—Kansas

Offering

City, Kan. Underwriter—None..

•

(11/23)

/Oct. 26 filed $1,500,000 of 20-year convertible subordi¬
nated/debentures due 1979, to be offered in units of

!$5<)0 and $1,000.

Price—At par.
Proceeds—To be used
plants in the midwest and southeast
industrial areas; to spend $350,000 to equip these new
plants; $150,000 to further equip and improve the com¬
pany's Brooklyn plant; and $600,000 will be used to re¬
tire corporate indebtedness. Underwriter—S. D. Fuller
to establish two

Producers

Proceeds—For

Oct. 21

—Expected in about 30 days.
Perrine

brokers of

per
share.
Underwriter—None.

cey,

and

Price—$5

new

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 25f)..
! Price — $1.50 per share. Proceeds — For general corpo¬
rate purposes. Office—1202 Myrtle St., Erie, Pa. Under¬
writer—John G. Cravin & Co., New York.
Offering—
Expected in a couple of weeks.
"
!
_

Radiant Lamp & Electronics

Corp.

Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
sinking fund debentures, series II, due Oct. 15,
'1969, and 120,000 shares of class A stock (par 10 cents).
& Co., New York.
Price
For debentures, 100% of principal amount; for
Petroleum Projects
stock, $5 per share. Proceeds—To acquire Radiant Lamp
Oct. 13 filed $1,500,000 of participations in oil and gas < Corp., of Newark, N. J., with the balance to be used as*
exploratory fund. Price — The minimum participation
working capital. Office—40 Washington Place, Kearney,
will cost $10,000. Office—Madison, N, J. UnderwriterN. J. Underwriter-—Amos Treat & Co., Inc., New YorkMineral Projects Co., Ltd.
•
' : Offering • — Expected sometime during the end of Novertible

—

Piedmont Natural Gas Co.,
22 filed 36,237 shares of

Inc. (11/20)
cumulative convertible
"preferred stock (without par value), to be offered to
common
stockholders of record Nov. 20, 1959, on the
basis of one new share of preferred stock for each 35 of
common stock then held; rights to expire on Dec. 7. Price
—To be supplied by amendment, proceeds—For repay¬

OcL

West

from

Palm

Beach.

These

three

have

• -

•'

...

II,175 shares with certain selected investors at $10 per
with warrants to purchase an equal number of
share. Proceeds—For working cap¬
ital.
Office—1800 Shames Drive, Westbury, L. I., N. Y.
share,

shares at $12.50 per

been

Underwriter—Hayden, Stone & Co., New York.

International

Properties, Inc., a newlyformed Minneapolis real estate firm, for 15 years, with
options to renew. Office — Baker Bldg., Minneapolis,
Minn. Underwriter
Craig-Hallum, Inc., Minneapolis,
Minn! Offering—Expected sometime in November.

•

Frequency Company, Inc. (11/9)
(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mas*
Underwriter—Myron A. Lomasney & Co., New York.
Radio

Aug.

—

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1),
which 55,000 shares are to be offered first to stock¬
holders of record Aug. 31, 1959, and 45,000 shares (mini¬
mum) are to be offered to the public, which will also be
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 conadet its
insurance business in States other than Illinois, the sole

•.

Hayden, Stone & Co. has agreqd to purchase 2,500 shares*
for its own account and to use its best efforts to place

Pik-Quik, Inc.
Sept. 17 filed 500,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—To place in operation
80 food markets in Florida, three of which will be lo¬
near

*"'

Radiation

Dynamics, Inc., Westbury, N. Y.
Sept. 8 filed 25.000 shares of common stock (par $1). The
company is offering its stockholders of record Oct. 26 the
right to subscribe to 11,325 shares at $10 per share, with,
warrants
to
purchase an equal number of common
shares at $12.50 per share, on the basis of one new shafe
for each four shares held.
Rights to expire Nov. 16

writer—White, Weld & Co., New York.

leased

vember.
•

ment of notes incurred for construction program. .Under¬

cated

-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

Nov.

(11/23)

agents

-Sept. 17 filed 400,000 shares of coinmon stock (par 10
ceiits) with warrants to purchase an additional 100,000
common
shares at $3.25 per share. Price — $3.75 per
share, with warrants. Proceeds—For general corporate
purposes, including the addition of working capital, the
reduction
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 St., New York. Underwriter—Chaun-

;

■;

Underwriter—Any stock not subscribed for by holders
will be publicly offered by Crerie Co.,
Houston, Texas and Clark, Landstreet & Kirkpatrick,
Inc., Nashville, Tenn., at a price of 20 cents a share.
'!

Pathe News, Inc.

Proceeds—For working capital.

Producers Fire & Casualty Co., Mesa, Ariz. ;
31 filed 400,000 shares of common stock to

—

purchase 25,000 shares of common stock
(par 10 cents).' .Price—$1,020 per $1,000 debenture
with warrant for purchase of 100 shares of common stock

March

equipping, and placing in operation
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.

Corp.

offered for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain

Nu-Line Industries, Inc.
;Sept. 28-(letter of notification) $250,000 of 7%. sub¬
ordinated debentures due Oct. 1, 1969 with common
stock purchase warrants entitling the, holders of the

Machine

(letter of notification) 10,910 shares of common
(par $10) to be offered in exchange for all of the

a share, for
each share of Marine
Marine Drilling also plans to sell 250,000
shares of the 680,000 shares of Pan-Alaska it now owns.

shares for each five shares

Office—Alliance, Ohio. Underwriter—
Pearson, Murphy & Co., Inc., New York.
/

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., Inc.,
Merrill Lynch, Pierce, Fenner & Smith Inc., White. WeldF
& Co., and Salomon Bros. & Hutzler
(jointly). Bids—
Expected to be received up to 11 a.m. (EST) on Nov. 23.

war¬

—For construction,

share.

300,000 shares of com¬
Price—$1 per share. Proceeds

(par 10 cents).

determined

Price—100% and accrued interest from Oct. 15. Proceeds

Proceeds—To reduce indebt¬
edness with the balance, if any, to be used as working
capital. Office—Matthews, N. C. Underwriter—One pi
more security
dealers will be offered any shares not
per

week.

Aug. 28 filed $2,700,000 of 6% subordinated sinking fund
debentures, due Oct. 15, 1974 (with warrants attached en¬
titling the holder to purchase 50 shares of common stock
of the issuing company for each $500 of debentures).

North Carolina

Offering—Expected this

^ Potomac Electric Power Co.

Pantasote Co.

Office—Ithaca, N. Y. Underwriters—
Corp., Lehman Brothers, Wertheim &

Merrill Lynch, Pierce, Fenner &

Mo.

'outstanding stock of Rototiller, Inc. The exchange offe*
expires at 3 p.m. (EST) on Dec. 1, 1959. Office—700 Marcellus St., Syracuse, N. Y. Underwriter—None.
V

of Marine Drilling

To discharge short-term obligations
incurred for con¬
struction, with the balance to be applied to expenditures

Louis,

Porter-Cable

Drilling stock.

15 shares then held. The rights are scheduled to expire
Dec. 7. Price—To be supplied by amendment. Proceeds—

—

Oct. 23

Pan-Alaska Corp.
Aug. 7 filed 2,612,480 shares of common capital stock to
be issued pursuant to options held by Marine Drilling,
Inc. Latter company of record Oct. 29 offered its stock¬
holders rights to purchase two, shares of Pan-Alaska
common

•

Applicators, Inc.

fund

mon stock

able

and

First

—For expansion.

675,000

$1,344,000 for the notes and $56,000 for the
*t, /
.

Plastic

stock

secured

working capital. Underwriter—The

Porce-Alume, Inc;
Aug. 3 (letter of notification)

Uranium Mines Co.

filed

for

general

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

New England Power Co. '(-12/9)
Nov. 2 filed 100,000 shares of cumulative preferred stock

Proceeds—To

and

accrued

stock purchase warrants, and 675,000 shares of
stock. $1,600,000 of the notes and 360,000 war¬
rants are to be offered to holders of $1,600,000 of out¬

To Be supplied by
?amendment.- Proceeds—To selling stockholders. Office—

(par $100).

loans

(par $2).

Exchange?

debentures, due 1969. Price—At 100% pluu
interest from Oct. 1, 1959.
Proceeds
For
corporate purposes.
Office—7020 Katy Road,
.Houston, Texas. Underwriter—A. G. Edwards & Sons,

(11/24)

Atlanta, Ga. Underwriter—Johnson, Lane, Space Corp.,
Atlanta, Ga,; Francis L duPont & Co., New York; and
The Robinson-Humphrey Co., Inc.,
Atlanta, Ga.
' ' : :
>

endorse¬

& Co., New

Corp.

120,000 shares, representing outstanding stock,
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.,

common

Bache

ing

also

with National Video Corp.

—

Chemical

maining

are

(par $1).

Oxford

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

Chicago, 111. (Underwriter

(11/10)

Oct. 1 filed $1,000,000 of convertible subordinated
sink¬

Any shares not so purchased plus an addi¬
tional 72,500 shares are to be publicly offered.
The re¬

ment

Price

Pitney-Bowes, Inc.

Price

•

Co., New York.

employees.

Corp., New York.

Oct.

which

Boston Corp., New York.

Price—$6

Oct. 22 filed 227,500 shares of class A common stock
(par
25 cents),'of which 35,000 shares are to be offered first to

capital stock for each three shares then held; rights to
expire on Nov. 16.
Price—$32.50 per share. Proceeds—
To increase capital and surplus. Underwriter—The First

;

filed 200,000 shares of common stock
be related to the New York Stock
at time of offering. Proceeds—To retire

Proceeds—For research and working capital.

Underwriter—Sutro Bros. &

Sept. 24 filed 200,000 shares of capital stock (par $5)
being offered for subscription by stockholders of record
Oct. 16, 1959, on the basis of one additional share of

Boston

share.

per

Underwriter—Palombi

Insurance

•

Oct.

Corp., Detroit, Mich.

Oct. 27 filed 150,000 shares of common stock.

Proceeds—

Co., Inc., New York City.

National

State

it is presently licensed.
Office—222 W.
Adams St., Chicago, 111. Underwriter—None.

Trade

short-term bank

Sept. 25 (letter of riotiiication) 300,000 shares of
stock

Securities

(1925)

Ranney Refrigerator Co.
shares of common stock

"of

Oct. 8 filed 43,500

(par $2.50)

40,000 shares are to be offered for the account
of the issuing company and 3,500 shares, representing
outstanding stock, are to be offered for the accounts of
.the present holders thereof. Price—$8 per share. Proof which

ceeds

—

For expansion

and working capital. Office—
Continued

page

38-

(1926)

The Commercial and Financial Chronicle

Continued from

;

Scaico

page

Greenville, Mich.

—

Co., Inc., Detroit, Mich.

Campbell, McCarty &

mon

Electronics Research Corp. *
July 15 filed 165,000 shares of common stock (par $1),
subsequently reduced by amendment to 115,500 shares,
of which
100,000 shares will be offered to the public.
Price—$8.50 per share. Proceeds—For general corporate
purposes. Office—1029 Vermont
Avenue, N. W., Wash¬
ington, D.C. Underwriter—Weil & Co.,

Washington, D.C.

Realsite, Inc.

(11/9*10)
July 28 filed 200,000 shares of class A stock (par 10
cents. Price—$3 per share. Proceeds—To
pay off mort¬
gages and for working capital.
Office—Jamaica, L. 1.,
N. Y." Underwriter—Robert L. Ferman &
Co., Miami,

Fla., and Godfrey, Hamilton, Magnus & Co. Inc., New

York.

':.

• Red Fish

Boat Co.
Oct. 22 {letter of
notification)
common

400,000 shares of class A
Price—75 cents per share.

stock (par 10 cents).
Proceeds—To pay mortgages, accounts
payable, purchase
raw
materials, expand production facilities and expan¬
sion of sales
program. Address—P. O. Box 610 Clarksville, Texas. Underwriter—R. A. Holman & Co., Inc.,
;

share.

Proceeds

—

general corporate purposes. Office—P. O. Box
41, 450 Cooper St., Delanco, N. J. Underwriter—Albion
Securities Co., Inc., 11 Broadway, New York
4, N,. Y.
Scott & Fetzer Co.

warrants

on company-owned building sites.
Office—
Washington St., Bloomington, III Underwriter
—White & Co., St. Louis, Mo,
;

1700 West

>v,

Farms, Inc.
Oct. 27 filed 67,500 shares of
outstanding common stock.
Price —To be supplied by amendment.
Proceeds#—To
selling stockholders. Office—Professional Building, Ft.
Pierce, Fla. Underwriter—R. S. Dickson & Co., Char¬
lotte, N. C. Offering—Expected in early December.

Storm

Price—To be

—None.

of shares of class A

Strategic Materials Corp.
1
June 29 filed 368,571 shares of common stock, (par
$1), to
offered for subscription by common stockholders at
the rate of one new share for each five shares held. Price

common

—To be

(W. A.)

Pen Co.

least

five

years.

Price—At

the

most

recent

supplied by amendment. Proceeds—For payment
loans; for payment of a note; for working
capital; for expenditures by Strategic-Udy Metallurgical
of

Chemical Processes Ltd., which owns and
operates
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal subsidiary,
a

the company and

the

•

78th

St., Minneapolis, Minn.
White, Weld & Co., Minneapolis.

working

Office —659

10th

Underwriter—Chauncey, Walden,

Inc., ,580 Fifth Avenue, New York.
in three

St.

Oct.

New

Harris & Freed,

Paul

Ammonia

Products, Inc.

filed

$1,249,849

10-year 6%

ordinated

100%

70% of
th^ , common
stock outstanding at this date of the stock
^offering; to
invest in the capital stocks of six of the
company's

sub¬

principal

amount.
with
the

may engage.

making

the

balance, estimated
$125;000, to be added to working
capital. OfficePaul, Minn. Underwriter—White Weld & Co

dealers

accumulation

Proceeds

it St. Regis Paper Co.
common

stock (par

(Howard W.)
21

Sams & Co.

filed

(11/23-27)

^fSLPPi,Q«by

•

common

Under¬
Francisco.

the basis of

Tennessee

shall

cancelled.

Houston,

New

one

share of Tennessee

York.

Texas.
Dealer-Managers — Stone &
Corp., and White, Weld & Co., both
effective Oct. 1.

Statement

debt incurred for expansion.

State Industries (11/10)
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¬
cluding the purchase and installation of a modern
paint

amount.

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.

purchased or
is presently

(11/10)
filed 300,000 shares of cumulative convertible
preferred stock (par $100)'.
Price—To be sup¬
plied by amendment.
Proceeds—To reduce short-term

stock, of which

Co., Inc., New York, N. Y.

been

Tennessee

second

Underwriters

to be offered to employees of the issu¬
and its subsidiaries, and 210,000 shares

Standard Beryllium
Corp.
(11/5)
Sept. 3 (letter of notification) 200,000 shares of common
stock (par one cent).
Price—$1.50 per share. Proceeds
—For working
capital and general corporate purposes.
Office—150 E. 43rd St., New York 17, N. Y. Underwriter

have

East

Tennessee Gas Transmission Co.

Oct.

are

—R. G. Williams &

negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the redemption of the 5.20% cumulative preferred stock. Exchange offer will expire on Nov.
16, 1959, unless otherwise extended. Office—Tennessee

Bldg.,

Wlilte,

Stone

of which

100,000 shares

of the "issuing

—

Houston, Texas.
and

common

stock,

(par $1),

to be offered for the account

and 50,000

shares, representing

to be offered for the account of
thereof. Price—To be supplied by

are

present holders

amendment.

are

company

outstanding stock,
the

Office

Webster Securities Corp.,
Weld & Co., both of New York City.
—

-Tex-Tube, Inc.
Ogt, 6 filed 150,000 shares of

Proceeds
To discharge bank loans, fdr
capital improvements, and to increase working funds.
Office—1503 North Post Road, Houston, Texas.
Under¬
writer—Moroney, Beissner & Co., Houston. OfferingExpected sometime in November.

—

•Webster Securities
,

New York.

®me"dment Proceeds—For investment.
Office—23 Hazelton
Circle, Bnarcliff Manor, N. Y Gen¬
Distributor—Samson
Associates, Inc.
' *
"
• San
Diego Gas & Electric Co.
-^9 filed 500,000
shares of common stock
(par
$10) being offered for
subscription by common stock¬
holders on the basis of
one
new share for
each eight
shares held of record Nov.
4; rights to expire Nov. 24.
Pnce—$23 4° per share. Proceed^-To
reimburse treasury
and Shn

•

eral

^L
J^uT^any; 0ff£e-San Diego,c/balif.
writer—Blyth & Co., Inc.,
New York

Span America Boat Co., Inc. (11/10)
Sept. 9 (letter of notification) 175,000 shares of common
stock (par 25
cents). Prices—$1 per share. Proceeds—To
purchase raw materials; for sales program and
working
capital. Address—'Exposition Park, Fort
Dodge, Iowa.
Underwriter
R. A. Holman & Co.,
Inc., New York,

Cohn, & Shumaker, Inc., both of
Indianapolis, and Walston &
Co., Inc., of New York
City. Offering—Expected
sometime in November.

Price

shares.

•

Office—1720 East 38th St.,

Samson Convertible
Securities Fund, Inc.,
July 15 filed 200,000 shares of common
stock.

their

derwriter—None.

are to be offered for the
accounts of
holders thereof.
Price—To be supplied
by
amendment.
Proceeds—To be used as
working capital
and to reduce

Bond

225,000 shares of

represent outstanding stock held by previous stockhold¬
ers of Southwest
Acceptance Co.; who may offer their
shares. Price—At market.
Office—Amarillo, Texas. Un¬

the present

Underwriters—Indianapolis
Share Corp, and Kiser

filed

15,000 shares
ing company

outstanding stock,

indebtedness.

of East

redeemed- and

it Southwestern Investment Co.
Nov. 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

Indianapolis, Ind.

par)

Biscayne Blvd., Miami, Fla.
Underwriter—Jaffee,
Leverton, Reiner Co., New York.
*

This offer is subject to various conditions, one of which
is that all of the 5.20% cumulative
preferred stock ($25

7630

—

Inc..

Gas Common for 2.75 shares of East Tennessee common.

the company officials, who are
pay
a
10% commission to
sale

Underwriter—None.

Natural Gas Co.

615 Hillsboro St., Raleigh, N. C.

the

Enterprises,

Aug. 21 filed 473,167 shares of common stock (par $5),
being exchanged for common stock of East Tennessee

may

with

Co., Hartford,

Tennessee Gas Transmission Co.

Price—To be supplied by amendment.
Proceeds—For
general corporate purposes, including expansion. Office—

$5), to

exchange for outstanding common shares
of the common stock of
Birmingham Paper Co. in the
ratio of 8.625 such shares of
St. Regis for each
such
share of Birmingham.
Office
150
E.
42nd
Street,
New York City.
Oct.

connection

(letter of notification) 251,849 shares of common
Price—$1 per share. Proceeds—For operating expenses, a note payable, engineering and con¬
struction, etc. Address—P. O. Box 57, Apache Junction,

Ariz.

Southern Gulf Utilities, Inc.
Aug. 24 filed 135,000 shares of common stock (par
5c).

New York.

Oct. 29 filed 86,250 shares
of

—

offering,

Andrews

Oct. 22

Statement effective Oct. 15.

South St.

be offered in

Office

Underwriter—None, but

stock (no par).

*
"

covering the installment financing of consumer prod¬
ucts or other types of
financing in which the company

For

inventory
at

retire

—

it Superstition Mountain

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

(11/6)
convertible

Proceeds—To

Underwriter

Conn.

Southern Frontier Finance Co.

debentures, due Dec. 1, 1969, to be offered for
subscription by common stockholders on
the basis of
$10 principal amount of debentures
for each 10 shares
held on Nov.
6, 1959; rights to expire on Nov. 23. Price
—

amendment.

Offering—Expected

four weeks.

Avenue,

Conn.

issued and sold for

and 457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be
supplied by

seven bank
subsidiaries; to repay a bank loan of $6,400,000; to add to working capital; to retire certain longterm indebtedness; and to
develop citrus groves. Office
—250 South East First Street, Miami. Fla.
Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.

machinery, and adding

capital.

which 1,543,000 shares are to be

the account of the company,

poses, including moving to new quarters and
installing
executive offices and sound studio
facilities therein, ac¬
quiring technical equipment and
to

Oc't-r-14

stock

Sottile, Inc. (Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),

Roulette Records, Inc.
V
Aug. 27 filed 330,000 shares of common stock
(one cent),
of which 300,000 shares are to be
publicly offered. Price
—$3.50 per share. Proceeds—For general
corporate

York.

Supermarket Service, Inc.
(letter of notification) 9,000 shares of common
(no par). Price—$11.50 per share, Proceeds—For
working capital. Office — 103 E. Main St., Plainville,

selling stockholders. Office—Orrville, Ohio. Under¬
writer—McDonald & Co., Cleveland, Ohio.

Underwriter—

pur-

Ave., Flushing 55, N. Y. Underwriter—D. A. Lomasney
& Co., New York, N. Y.
'
*

—To

re¬

Co., Buffalo, N. Y.; and Allen & Co* New York.

Superior Manufacturing & Instrument Corp. .
Oct. 12 (letter of notification)'80,000 shares of common
stock (par 50 cents).
Price—$3 per share. Proceeds—
For general corporate purposes. Office—154-01
Barclay

(J. M.) Smucker Co. (11/16-20)
Oct. 12 filed 165,000 shares of outstanding common stock
(no par). Price—To be supplied by amendment. Proceeds

the public. Price—To

Lunt &

con¬

Colorado.

employees, $12.83 per
share; to the public, $13.50 per share. Proceeds—To pay
outstanding bank loans and for working capital. Office

—4900

equipment;

advertising and for working
Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen, Inc., Denver,
capital.

Rosemourtt Engineering Co.
Oct. 2 (letter of notification) 22,609 shares of common
stock (par 75 cents) of which
7,799 shares are to be
employees

(letter of notification) 95,000 shares of capital
(par 10 cents). Price—$1.50 per share. Proceeds—

To purchase and install
manufacturing
trol and test equipment;

underwriting and to expand its area of operations. Un¬
derwriter—A. G. Becker & ,Co. Inc.,
Chicago, 111.
This
offering will not be made in New York State.

the

by its other direct subsidiary, Strategic-Udy Pro¬
Inc., which owns and operates a laboratory at
Niagara Falls, N. Y.; as working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.

Ltd.

Sept. 8
stock

supplied by amend¬

Proceeds—To be added to the general funds of
the company to enable it to finance a
larger volume of

offered to

and

cesses,

Shield Chemical

ment.

mainder to

bank

Midwest

Exchange quotation.
Proceeds — For working
capital. Office
301 Avenue H, Fort Madison, Iowa.
Underwriter—None.
—

Price—To be

Mountain Ski

Corp.
Oct. 14 filed $225,000 of 6% to 7% first mortgage con¬
vertible serial bonds due 1965-1975, and 500,000 shares
of common stock (par $1). Price—For
bonds, 100%;'and
for common stock, $1 per share. Proceeds—For
working
capital. Office—Steamboat Springs, Colo.. Underwriter

Stock

Reserve Insurance Co., Chicago, III. (11/16-20)
Oct. 20 filed 110,837 shares of
capital stock, ,of which
62,676 are to be sold for the company's account and 48,161 shares are to be sold for the account
of certain

selling stockholders.

Stelling Development Corp.
June 8 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds-—
For mortgages, land, paving roads, loans payable, advert
tising, etc. Office—305 Morgan St., Tampa 2. Fla. Under¬
writer—Stanford Corp., Washington, D. C,
;

Scott-Mattson

(letter of notification). An undetermined number
common stock (par
$1) and class B
stock (par $1) not to exceed
$50,000. The shares
may be purchased in blocks of not less than five
by
employees who have been with the company for at

poses, including the repayment of indebtedness and for
tooling and production. Office—38-19 108th St., Corona,
Underwriter—D. A. Lomasney & Co., New

These

per

restaurants

Oct. 5

L. I., N. Y.
York.

Nov. 19.

share
stockholders; unsubscribed shares will be publicly
$5 per share. Proceeds—For general corporate
purposes, including the developing of three drive-in

officials; the selling stockholders. Office—1920
West 114th Street, Cleveland, O. Underwriters—McDon¬
ald & Co.,
Cleveland, and Kidder, Peabody & Co., New

Sheaffer

For general corporate pur¬

Price—$4.62 Vz

(11/16-23)

non-transferable.

are

offered at

company

•

on the basis of one new share for each
shares then held. The warrants are being mailed out

today (Nov. 5) with rights expiring

Oct. 15 filed 100,000 shares of
outstanding common stock.
Price—To be supplied by amendment. Proceeds—To two

York.-

Thursday. November 5, 1959

Sept. 15, 1959,
9

for

Co., New York.

company and 71,334 shares are to be offered for
of the present holders thereof.
Price —

per

and

Business—The company operates 259
beauty salons
in Teased premises in leading
department and specialty
stores. Underwriter—F. Eberstadt &

accounts

$3.50

Pro¬

ers.

Rek-O-Kut Co., Inc. (11/16-20)
Sept. 25 filed 214,000 shares of common stock (par
25c), of
which 142,666 shares are to be offered for
account of the

issuing

share.

• Steak'ri
Shake, Inc.
Aug. 24 filed 6.5,505 shares of common stcek, being of¬
fered by suoscription by common stockholders of record

com¬

supplied by amendment. Proceeds—To selling stockhold¬

New York, N. Y.

the

per

development; increaese of plant
facilities; sales and training program; sales promotion

•
Seligman & Latz, Inc. (11/30)
Oct. 28 filed 250,000 shares of common stock.

•

ceeds—For research and

Raub

•

Controls, Inc.
(leter of notification) 240,000
stock (par 10 cents).
Price—$1.25

Sept. 23
Underwriter

—

Jimeplan Finance Corp.
8 (letter of
notification)

Oct.
tive

mon

28,570 shares of cumula¬
preferred stock (par $5) and 14,285 shares of com¬
stock (par 10 cents)' to be offered in units of one

share of preferred and one-half share of common. Price
—$10.50 per unit. Proceeds—For working capital. Office
—ill E. Main St., Morristown, Tenn.
Underwriter—
Texas National* Corp., San
Antonio, Tex.

Tower's Marts, Inc.
Aug. 28 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce indebtedness by about
$300,000, with the balance
to be added to working capital of the
company and its
subsidiaries.

Office—210

East

Main

Cormr Underwriters—To be supplied

Street,

Rockville,

by amendment.

Volume 290

Number

5896

The Commercial and Financial Chronicle

(1927)

•

Town Enterprises, Inc.
Sept. 30 filed 200,000 shares

(

class

Universal Container
Corporation (11/16-20)
Sept. 25 filed 167,500 shares of common stock ^par 10
cents), of which 150,000 shares are to be publicly offered.

stock,

common

(par 50

cents). Price—To be supplied by amendment.
Proceeds—For expansion, and for the reduction of in¬
debtedness. Office—902
Orange Street, Wilmington, Del.
Underwriter
Johnston, Lemon & Co., Washington,
D. C.
Statement expected to become effective
today
(Nov. 5).

Price—$4

•

Transcon

Petroleum

capital,
York.

Development Corp.,

March 20

com¬

San

Transwestern Pipeline Co. (11/18)
Oct. 20 filed $40,000,000 of
5% subordinated debentures
due 1969 and
2,000,000 shares of common stock (par $1),
to be offered in units
consisting of $100 principal amount
of debentures and five shares of
common stock.
Price—

to be offered in units of

be supplied
by amendment. Proceeds—Will be used
part of a total estimated financial requirement' of
$194,498,000 to construct and put into operation a pipe-

line system to supply natural
Pacific

gas

the

customers

Lighting Company's subsidiaries.

the

underwriters.

general

Underwriters

(12/7-12)

Oct. 26 filed 655,000 shares of common
stock, 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
To
be
supplied
by/ amendment.
Proceeds — To

com¬

Price—$5.05 per unit.'/Proceeds—For
purposes, including the purchase of
supplies, machinery, and equipment, and the leasing of a
Los Angeles plant for
manufacturing purposes. Office—
235 Montgomery
St., San Francisco, Calif. Underwriters
—Wilson, Johnson & Higgins of San Francisco, and
Evans, MacCormack & Co., of Los Angeles.

Co.

one

will be

—Lehman Brothers and Merrill
Lynch, Pierce, Fenner &
Smith Inc., both of New York.

Trans-World Financial

class A share and

one

share. An additional 170,000 shares of common stock
offered to the founders of the company and to

mon

corporate

June 29

Investment Co., Phoenix, Ariz.
filed 80 investment contracts (partnership

bank

repay

loans

subsidiary,
the

and

ance

its

behalf

own

liquidate

the

stock

added

general

common

that

and

unpaid

subsidiary,

with

funds.

balance

the

Office

for

terests) to be offered in units.

bal¬

—

8001

Beverly

Boulevard, Los Angeles, Calif. Underwriter—
W. R. Staats & Co., LPS'Angeles, who has acquired'for
investment purposes in exchange for $20,000 cash the
10,000'shares of the filing not accounted for above.

;
*

Tri

Metal

Oct.

60,000 shares of 40 cents
preferred stock (par $1). Price
—$5 per share. Proceeds—For general corporate purposes. Office—Bannard & Warrington Aves., East River-

ton, N.

Underwriter—R.

Scheinman

Co., New

York, N. Y.

(1960)

Oct.

Trice Oil

filed

and

$5,500,000

Gas

Co.

participations in Programs
6001-4. Price—$5,000 per unit. Proceeds—For
acquisition
and development of undeveloped oil and
gas properties.
Office—Longview, Texas. Underwriter—None.

-*
<

•

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock
Price

$10.75

—

share.

per

Proceeds

—

For

(par $1).

investment.

r*Office—South

Main Street, Greenville. S. C
Under¬
writer—To be^supplied by amendment. Statement effective Sept; 25.
• ~*y ^■yr-'-'t.-— T—')

■;

Tungsten Mountain Mining Co.
May 21 (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, installation of machinery and
equipment and working capital.

Office—511 Securities Building, Seattle
1, Wash.
writer—H. P. Pratt & Co., Seattle 4, Wash.

Under¬

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition o 1
operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office
space, bj
-lease or purchase. Office —
Wilmington, Del. Under..writer—None.
Myrl L. McKee of Portland, Ore., i«

0
,

„

President
r

Price—$5,378.39

per

United Marine, Inc. (12/1)
filed $1,250,000 or 6% sinking fund debentures,

due Dec. 1,

1974, with warrants to purchase 100 common
$1,000 of debentures, and 125,000 "shares
stock (par $1), to be offered in units of 100
common shares and $1,000 of such debentures. * Price—
$1,125 per unit. Proceeds—For the acquisition of Rich¬
shares for each

,of

common

ardson Boat
expenses

Co., Inc., and Colonial Boat Works, Inc., and

incidental thereto.

Office—Millville, N. J. Un¬

derwriter—Boenning & Co., Philadelphia, Pa.
•

Mass.

in¬
unit.

Underwriter—O'Malley Se¬

Statement effective Aug. 1L

Underwriter—Paine,

New

York.

Webber,

Jackson & Curtis,

'..

Variable

April 21

Annuity Life Insurance Co. of America
filed $4,000,000 of Variable Annuity Policies.
less

than

$120

for

annual

premium
$1,500 for single premium
conti
cts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.
contracts

and

less

year

than

Vita-Plus Beverage Co., Inc.
v
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

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.,

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

that company.
Office—Mountain
became effective on July 20.

Waltham

Brook, Ala.

assets

Statement

United States

July 28 filed $1,065,000 of participations in partnership
interests. Proceeds—To purchase land and
buildings of
Waltham Engineering and Research
Center, Waltham,
Mass., and for expenses connected to the purchase. Of¬

Street, New York 1, N. Y. Underwriter
Corp., same address.

—The First Republic Underwriters

Washington Mortgage and Development Co., Inc.
Sept. 29 filed 100,000 shares of common stock (par 10c)
Price—$5 per share. Proceeds—For investment in mort¬
gage notes secured by real estate. Office—1028 Connecti¬

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,
Phoenix, Ariz. Under¬
writer—None. Some of the shares may be sold
by sales¬
men
employed by the company, or by registered brokerdealers. A commission not to exceed
17%, or 34 cents

will

expire Nov. 17. Price—$26.50 per share. Proceeds
increase capital and surplus. Underwriters—Alex.
Sons, Baker, Watts & Co., John C. Legg & Co.
and Stein Bros. & Boyce, all of
Baltimore, Md.
• U. S. Land Development Corp.
—To

may be

amendment.

Cleveland, Ohio.
White

Corp., New York
110,000 shares of common stock (par 10c).

Oct. 20 filed

Price—To be supplied by amendment. Proceeds—For
ad¬
vertising and general funds. Underwriter—The shares
to be offered

are

common

Venice

East, Inc., which are to be operated as subsidaries of the
issuing company. Office—1040 Bayview Drive, Fort Lau¬

derdale, Fla. Underwriter—None.
United Tourist

Washington Planning Corp. (11/5-13)
Oct. 1 (letter of notification) 24,286 shares of new class
A stock (par 10 cents). Price—$3
per share. Proceeds—
To go to the company. Office—52
Broadway, New York
4, N. Y. Underwriter—Heft, Kahn & Infante, Hempstead,
N. Y.

Waukesha Motor Co.
Oct.

filed approximately
100,000 shares of common
being offered for subscription by common stock¬

the basis of

one new

share for each five shares

held of record Oct.

27, 1959; rights to expire on Nov. 12.
Price—$39 per share.
Proceeds—To repay bank loans
and for working capital.
Underwriter—Merrill Lynch,
Pierce, Fenner & Smith, Inc., New York.

Truman.

Statement

Wasserman

effective

Western

Wood

Co.,

both

New

York.

Fiber Co.

and 40,000 shares of preferred stock (par
At par.
Proceeds—For construction and

cents). Price-—$2 per share. Proceeds
For
development and construction of a "Western Village"

and

None.

shares of class A

for

stock

common

—

construction

Grand

vention

Estes

Hotel

and

Con¬

Hall, to be constructed in the immediate vicinity
Chalet, located in Larimer County, Colo.
Office
330 South 39th Street,
Boulder, Colo.
Under¬
writer—Mid-West Securities Corp.,
Littleton, Colo. State¬
of Estes Park
—

ment

effective Oct. 9.

none" basis by Adams &

company
the third full business d£*y
as

to whether

Wittney & Co., Inc.
(letter of notification) 75,000 shares of common
(par $1). Price—$1.75 per share. Proceeds—For

stock

manufacturing, research, plant expansion, product ex¬
pansion, personnel and working capital. Office—142 W.
5th Avenue, Denver
4, Colo. Underwriter—None.
Winkelman Bros. Apparel, Inc.
Oct.

filed

145,000 shares

account

(12/1)

class

(par $3), of which 70,000 shares
the

are

common

stock

offered

for

the

company and 75,000 shares, repre¬
senting outstanding stock, are to be offered for the ac¬
counts of the present holders thereof. Price—To be
sup¬
plied by amendment. Proceeds—For general corporate
purposes.

Office—25 Parsons St., Detroit, Mich. Under¬

writer—Watling, Lerchen & Co., Detroit.
it Worcester County Electric Co. (11/30)
Oct..30 filed $7,500,000 of first mortgage bonds, series E,
dated Dec. 1, 1959 and due Dec.
1, 1989. Proceeds—To¬
gether with other funds, will be applied first to the pay¬
of short-term note

indebtedness, and

will be used to pay for construction or

balance

any

to reimburse the

treasury

thereof.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;
Kidder, Peabody & Co.; Blyth & Co., Inc., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Fenner

Smith

No\C30.

Inc.

Bids—Tentatively scheduled for
"TJ-"". r- """

World

Publishing Co.

(11/17)

filed 100,000 shares of common stock (par $1).
Price—rTo be supplied by amendment.
Proceeds—For

plant and working capital. Office—2231 W. 110th Street,
Cleveland, Ohio. Underwriter—Joseph, Mellen & Miller,
Inc., Cleveland, Ohio and New York.

Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
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.
mon

Prospective Offerings
American Gypsum Co.

July 15 it

was reported that the company will register
debt and equity securities later this
year. Proceeds—For
of a gypsum products plant in Albuquer¬

construction

que, New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

American
Oct.

Hospital

directors

West Florida

Natural Gas

Supply Corp.
company have authorized

this

Co.

Aug. 31 filed $837,200 of 7Vz% 30-year subordinated in¬
come debentures and warrants to
purchase 25,116 shares
of class A common stock ($1 par). Price—$100 per unit
consisting of one $100 debenture and a warrant to pur¬

additional equity

financing, number of shares has not as
yet been determined. Proceeds—For company's expan¬
sion program, to retire bank loans, and for general cor¬
porate purposes. Underwriters—Eastman Dillon, Union
Securities & Co. and Smith, Barney & Co., both of New
York.

American Jet School,

Aug. 31 it

was

Inc., Lansing, Mich.

announced that the corporation plans to

issue and sell 100,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to a national one, and
—

new

courses

and resident study

In correspondence school

Kalamazoo

St., Lansing,
New York, to be named.

$25). Price —
equipment oi
company's plant and for working capital.
Office—300
Montgomery St., San Francisco, Calif. Underwriter—

.(par 50

Oct. 23

1609

July 8.

March 5 filed 100,000 shares of common stock (par $10)

Enterprises, Inc.

Jan. 28 filed 4,500,000

"all

it (Lyle A.)

introduction of

outstanding

they will purchase the shares.

Business

the

following the effective date of registration

and

/V"

Shield

holders

of the

For

—

Ball, Burge & Kraus, both of Cleveland, Ohio.

2,250,000 shares of common stock, of which
1,170,000 shares are to be offered pro rata to holders
outstanding common shares of Eastern Properties,
Inc., and 1,080.000 shares are to be offered pro rata to

Oct. 30 filed

by
working capital.-Office—
Underwriters—McDonald & Co.,^ and

Proceeds

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.,

Brown &

paid to sellers of such shares.

Oct. 6 filed 100,000 shares of common
stock, to be of¬
fered for subscription
by stockholders at the rate of one
new share for each share held.
Price—To be supplied

Ave., N. W. Washington, D. C. Underwriters—Amer¬
Diversified Mutual Securities, Inc. and Gildar &
Co., both of Washington, D. C.

holders

Oct. 8 filed 910,743 shares of capital stock
(par $5) to be
offered to stockholders on the basis of one new share for
each five shares held of record Oct. 28.
The warrants

share,

Western Reserve Life Assurance Co.

cut

stock

Fidelity & Guaranty Co.

price of

Oct.

Engineering and Research Associates

fice—49 W. 32nd

stock. Proceeds—

20-year debenture bonds at their redemp¬
103% of their principal amount. OfficeMaple and 3rd Streets, Panama City, Fla. Underwriter
—Beil &
Hough, Inc., St. Petersburg, Fla.
tion

ment

Inc.

June 29 filed 10,000 shares of 6*4% cumulative
preferred
stock and 560,000 shares of common
stock, to be offered
to the stockholders of Ralph E. Mills
Co., Talbott Con¬

Co., Chattanooga, Tenn., for the business and

common

applied, together with moneys in the sinking fund
issuing company, to the redemption of the out¬

standing 6%

ican

Oct. 23

investment.

it Vance Sanders & Co., Inc. (12/1-4)
Nov. 3 filed 400,000 shares of
non-voting common stock.
Price—To be suppled by amendment. Office —
Ronton,

Price—No

Works, Inc.
(letter of notification)

cumulative convertible

curities Co.

the

before the close of business

—

Proceeds—For

Peck, of New York, who will advise the issuing

Val Vista
,

To be

per

Corp.
Sept. 25 filed 170,000 shares of class A capital stock
(par
$5) and 170,000 shares of common stock (par 5 cents),

Antonio, Tex.

Urethane

►

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
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,

snare). . Proceeds—
Underwriter—First

Investment Planning Co., Washington, D. C.

engaged enterprise, working
equipment, and expansion. Office—Louis¬
Underwriter—Michael G. Kletz & Co., New

Universal Finance Corp.

(letter of notification) 300,000 shares of

stock. Price—At par ($1 per
For development of oil
properties.

—
For general corporate
of funds for the purchase

new

ville, Ky.

Mangum, Okla.
mon

share. Proceeds

per

purposes, including provision
of the assets of a
similarly

—

chase three sfcares of class A

schools.

business. Office—

Mich. Underwriter

—

Bell Telephone Co. of Pennsylvania
Sept. 25 it was announced that the company plans the
sale of $30,000,000 of debentures dated Dec. 1, 1959.
Proceeds
To replace short - term borrowings used to
finance construction. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan Stanley & Co.;
—

White,' Weld & Co. and Eastman Dillon, Union Securi¬
ties & Co. (jointly). Bids—Expected to be received on
D'GC

Continued

page

Financial Chronicle

The Commercial and
40

•

plates
eeeds

Kansas City, Mo.
that the company contem¬

Underwriter—Financing

Manufacturing Co.,

Benson

June

;

announced

was

offering of $4,500,000 of common stock.
ProFor expansion program and additional working

•
Bridgeport Gas Co.
Sept. 9 it was announced that stockholders were. toQbe
asked on Oct. 27 to approve the issuance of about $1,100,-000 in new common stock to stockholders in ratio of one
new share for each seven shares held.
Proceeds — To
-

for expansion and
expenditures. Underwriter—Previous financing was ar¬
ranged through Smith, Ramsey & Co., Inc., Bridgeport,
reimburse

Conn.

the

company's

some additional equity financing, the .form it will
take will be decided on shortly. Proceeds—For construc¬

Offering—Expected before the end of the

tion program.
year.

Coffee

House, Inc., Lansing, Mich.
was announced company plans to issue and
cents). Price

cell 100,000 shares of common stock (par 10

share. Proceeds — To build chain of coffee
bouses, establish commissaries and for general corporate
purposes. Office — 1500 Clifton Ave., Lansing, Mich.
Underwriter—In New York, to be named.
—$3

per

Consolidated

Natural

Gas Co.

James Comerford, President, announced that
company plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Underwriter—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Cot Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
Co. and Paine, Webber, Jackson & Curtis (jointly).

May

•

19,

Duquesne Light Co.
Aug. 3 it was reported that the

ing the issuance of

•

dinated

convertible

determined

company is contemplatundetermined amount of subor-

Underwriter

debentures.

—

Probable bidders:
Halsey., Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union. Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly); White, Weld
& Co.; The First Boston Corp. and Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Offering—Expected later this

by competitive bidding.

/-;'Vr '/'.■•/>

year.

First National Bank of Jersey

City, N. J.

basis of about

Price—$53
surplus.

per

one

new

Oct. 22 it
is

ceived

acquisition.

later this year. Proceeds

—

common

$10,000,000
which

company

convertible

would

add

about

600,000

ment of

the

for the

of Savings

Graduate

Banking,

spon¬

campus

of Mutual Savings Banks, and Dr.

Dloyd

said

Pierce

has

been

ap¬

the school, scheduled
June 19, 1960. He also

that Dr.

Pierce's

career

some

Treat

Co.

New

days.

Long

the

.John deLaittre.
Dr.

Ensley reported that Brown

Vice-President

the

National

Johnson

Bank"

Hamilton

City,

debentures

and

contemplates

some

common

or early
(subject to SEC clearance). Office
Island, N. Y. Underwriters—Amos

year,

Truman, Wasserman & Co., Inc., both
Registration—Expected in a week to 10

anci

York.

4■//;-;■■''4^

announced Nov. 4 that stockholders have approved

was

increase

rate of

the

pave

holders

at $19
one

and
of

the

member

for

share.

new

The offering, to be made at

share for each

the
eight held of record Nov.

6, will expire Nov. 30.

Tennessee

Oct.

filed

-•

application with the ICC seeking per¬
mission to issue 57,000 shares of common stock
(par
$2.50), of which 45,000 shares will be offered for the ac¬
count of the company and 12,000 shares are to be offered
for the account of a selling stockholder.
Price—To be
supplied by amendment. Proceeds—The proceeds in en¬
tirety will be used to reduce equipment obligations
owing to the Bank of America National Trust & Savings
Association.
Underwriter—Dempsey-Tegeler & Co., St.

Sept. 29

Offering—Expected in November.

the

market

College, did gradu¬

American University,

plans to

Radio

Corp.

that the company is contem¬
sale of some additional com¬
Underwriters—Lee Higginson Corp., New

was

reported

stock.

York; and Straus, Blosser & McDowell, Chicago,

111.

Worcester

County Electric Co. (12/7) /
Sept. 17 it was announced that this company plans to
issue and sell $7,500,000 of first mortgage bonds, series
E, due 1989. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co,
Inc.; Kidder, Peabody & Co.; Blyth & Co., Inc., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner
& Smith Inc.; The First Boston Corp.; Coffin &
Burr, Inc. Bids—Expected to be received on Dec. 7.

savings institu¬ Development has been authorized
this objective, by
the
Board
of Directors to
a formulate policy and operational

achieve

school will seek to develop

The

tion

company

broad understanding of the Amer¬
City Develop¬ ican economy and the function
ment
Corporation. Dr. Pierce, and the place of mutual- savings
after receiving his B.A. from Car¬ banks in this environment."

where he received his M.A. degree

Line Corp.

that the

announced

plating the issuance and

Offering

tions.

was

Trav-ler

that

twice in 1960 with the sale of .first
mortgage bonds, and common and preferred stock. Pro¬
ceeds—To raise permanent funds for the financing,of
its 1960 expansion program. Office—Houston, Texas.
to

come

the management

Council

Lines

Transcon

Johnson

Newman

capital stock by 39,340 shares
offering of additional stock to

Transcontinental Gas Pipe

company

Education, the
Institute
of
Banking,

American

the bank's

way

Association's

Department,

new

Educa¬

deLaittre

Mr.

added, will not only work closely
with Brown University
and the

directives
School.

for

the

Graduate

Booth, Presi¬

Richard

dent, Springfield Institution for
Savings, Mass., is Chairman of
the Committee and the following
savings bankers
C.

are

members:

President
Dartmouth Sav¬
ings Bank of Hanover, N.
H.;
sin, from which he received his cation and Management Develop¬ Randolph
H.
Brownell,
Presi¬
Ph.D. in economics in 1953. Dur¬ ment in organizing the school and
dent, Union Square Savings Bank,
ing these years he taught at the its curriculum, but will continue New York; Leonard B. Campbell,
University of Tennessee and the to sponsor the Management De¬ Executive Vice-President,
Ware
University
of Richmond.
From velopment Conference at Dart¬ Savings Bank, Mass.; Charles W.
1950 to 1954 he was chairman of mouth,
which
the
Association Carson,
President,
The
Com¬

finance

and

at the

and

economic

theory,

University of Wiscon¬

Association's

Committee

from

savings banks of all sizes to

develop skills and abilities in the

The
on

Association's

Education

and

Maurice

and

Aldrich,

Treasurer,

Edu¬

banker, teacher, and administra¬
Association's tor
eminently qualify him
for the
department of economics at began in July 1957. It will also
newly-created Department of Ed¬ directing the Association's educa¬
the East Tennessee State College, develop
education programs for
ucation. The announcement was tional
program
and cooperating and in 1954 he became dean of either levels of
savings bank per¬
made by Dr. Grover W. Ensley, with Brown
University and the the
College's School of Business sonnel.
^
Executive Vice-President of the Association's
Committee on Ed¬
"The inauguration of this new
Administration. In 1956 he joined
Association,
following
approval ucation and Management Devel¬ the Hamilton
National Bank.
program,"
Mr.
deLaittre
con¬
by the Association's Board of Di- opment in planning the curricu¬
Commenting
on
the
Board's cluded, "is a significant step for¬
rectors. The creation of an Educa¬ lum, administrating the
programs,
ward in training and educating
tion Department for the Associa¬ and developing other operational decision, John deLaittre, Presi¬
dent of the Association, said, "the men and women to assume the
tion and the decision to conduct details of the school.
primary objective of the Graduate responsibility of safeguarding and
a
Graduate
School
of
Savings
The
new
education
director, School of Savings Banking will advancing the financial indepen¬
Banking were announced earlier who will assume his
dence and security of millions of
post about
be
to
help qualified personnel
Ly
the
Association's President, Nov.
Americans."
l,:fis at present Assistant
of

company

Economic

ate work at

pointed Director of the School and

Director

Tenn.,
Board

son

part of next January

Ryder System Inc.

for

begin

issuance

—Amityville,

Aug. 3 it was reported that the company plans issuance
this Fall of an additional 75,000 shares of present com¬

the

that the

stock, probably in the latter part of this

be outstanding, and including payment of a portion

economics department, and its ex¬
cellent facilities make it an ideal

Manufacturing Corp.

reported

was

mon

savings institutions.

sored by the National Association

the

proposed issuance and sale of 800,000 shares of common
(without nominal or par value). Proceeds—To be
added to the general funds of the company and will be
used for its general corporate purposes, including pay¬
ment before maturity of any unsecured bank loans which

University at Providence, University's experience with
Island, has been selected graduate studies, its fully-staffed
campus

that

announced

and

been

reported that the company

was

Telechrome

Nov.

Sept. 10 it

University

issues have

'•

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.

Corporation, Rochester, Mich.

the sale of about

application with the Board of Public Utility
Commissioners of the State of New Jersey covering the

by the National Association of Mutual Savings Banks.
Primary objective is to develop skills and abilities in the manage¬

School

;

was

program.

Tampa Electric Co.
Sept. 14 it

—Expected in December.

stock,
shares

construction

placed privately.

is announced

-as

(par 10 cents).

of the cost of its current construction program.

plans to reg¬

preferred

Proceeds—To repay Lank loans incurred' for cur¬

1959.
rent

Underwriter—Mortimer B. Burnside & Co., Inc.,
Yofk. Registration—Expected shortly,
\Public Service Electric & Gas Co.

may

same address.

22, S. C. McMeekin, President, announced plane*
sell approximately $8,000,000 of bonds In
December,;

New
o,

Electric & Gas Co.

June

gears.

Oct.

"4..

Louis, Mo.

date filed

•

South Carolina

Sept. 1 it was reported that this company contemplates
the early registration of approximately 200,090 shares of
common stock.
Business—Manufacturer of mufflers and

For land

At Brown

Khode

Lansing, Mich.
plans to register an

company

ber.

Summer Graduate School for savings bankers to begin June 19, 1960,

.Brown

Order Co.,

announced

England Telephone & Telegraph Co.
Aug. 19 it was reported that the company will issue and
sell $10,000,000 of preferred stock. Proceeds—For cap¬
ital expenditures. Underwriter — To be determined by
competitive bidding. Probable bidders: Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Smith Inc. and Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬
rities Corp., Kidder,
Peabody & Co., Lee Higginson
Corp. and White, Weld & Co. (jointly); Blyth & Co.,
Inc. Bids—Expected to be received sometime in Decem¬
New-Era

filed

• Trade Bank & Trust Co.

New

Savings Bankers School
V;

Mail

was

Transportation Plan, -Inc.

New York.

stock

Georgia-Pacific Corp.
Aug.49 it was\reported that the
of

of debentures, 10 common shares, and 5 warrants. Priee
—$150 per unit. Proceeds—For general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ross, Lyon & Co., Inc.,

York State.

Office—30 East 60th Street, New York City.

about

Jan. 19.

Proceeds—For
expansion and working capital. Office—130 Shepard St.,
Lansing, Mich. Underwriter—To be named later in New

Bank of Miami,

Underv^ite^^Midtown Securities Corp.,

conversion

(par $5),

$600,000 of 7% convertible : subordinated
debentures, due November, 1969, 60,000 shares of com¬
mon stock (par one cent) and
30,000 common stock pur¬
chase warrants, to be offered in units consisting of $100

•

100,000 shares of common stock
Price—To be supplied by amendment.

ister

program.

issue of

share for each 6.09 shares held.

Corp.
reported that a public offering of

was

Oct.

early in 1960.

National
Oct.

■'-.V;

expected

Co.; Merrill Lynch, Pierce, Fenner & Smith Inc., and
Kidder, Peabody & Co. (jointly); Salomon Bros. & Hutz¬
ler, Eastman Dillon, Union Securities & Co., and Equit¬
able Securities Corp. (jointly). Bids—Expected to be re¬

Florida West Coast

•

& Light Co.
that the company plans to issue

A Louisiana Gas Service Co. (1/19)
Nov. 4 it was reported that the company contemplates
the sale of $7,500,000 of first mortgage bonds. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

derwriter—None.

r stock

v'V.4^444:4-■

$20,000,000 of first mortgage bonds. Proceeds—

construction

year, or

Fla.
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
new
share for each four shares held.
Price—$40 per
share.
Proceeds—To increase capital and surplus. Un¬

Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Unioi)
Securities & Co. (jointly); Lehman Brothers and Bear
Stearns & Co. (jointly).
Bids—Expected later in the

share* Proceeds—To increase capital and

First National

/■/v/'//;/'' //-'i,/'

Kansas City Power

Oct. 29 directors of this bank proposed a 31,000 share
cubscription offering to its shareholders.
Shareholders
would be given the right to subscribe pro-rata on the
-

Dec. 29 it was reported
and sell
For

plating

Aug. 31

be named.

(The)

Underwriter—In New York, to

St., Lansing, Mich.

ard

Office—130 Shep-

Business—Radio broadcasting.

tions.

Thursday, November 5, 19&9

(par $2.50).

Last bond issues were placed
'•
Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock (par 10 cents). Price
—$3 per share. Proceeds—For acquisition of radio sta¬

treasury

Brooklyn Union Gas Co.
.Aug. 19 it was reported that the company is contem¬

or 150,000 shares of new common
The ICC- has approved the proposed
two-for-one stock split. Underwriter—Blyth & Co., Inc..
New York.
<
\
';-.v.
•

$4,500,000 of new bonds.
privately.
'■

curtain wall sections for the
building industry and other proprietary products. Un¬

stock

Aug. 3 it was reported company received approval from
the Territorial Public Utilities Commission to issue about

York,

Telephone Co.

Hawaiian

-capital, Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers

derwriter—S. D. Fuller & Co., New

Office — Olympia, Wash.
past has been handled by

Offering—Expected later this year.

Blyth & Co., Inc.

—

expansion.

—For

Proceeds

mon

shares currently outstanding

to the number of common

Continued from paqe 39
-

(1928)

Committee

Management

munity Savings Bank of Roches¬

Y.; C. Lane Goss, Presi¬
Worcester County Institu¬
tion for Savings, Mass.; John S.
Howe, President, The Provident
Institution
for
Savings
in
the
Town of Boston,
Mass.; Everett
J. Livesey, President, The Dime
Savings Bank of Brooklyn, New
York; Norman P. McGrory, Senior
Vice-President, The Howard Sav¬
ings Institution, Newark, N. J.;
ter,

dent,

Robert

Nash,

Treasurer,

The

Binghamton Savings Bank, N. Y.;
i.

»..•<*

Volume

Number

190

Thomas

The Commercial and Financial Chronicle

Nims, President, The
Savings Society, Conn.;

Charles

President, Citi¬
Bank, Providence,

Dealer-Broker Recommendations.

Savings

ings Fund Society, Pa.; Howard B.
Smith, President and Treasurer,
The
Middletown
Savings
Bank,
Conn.; and Jason W. Stockbridge,
President, Central Savings Bank,
Baltimore, Md.

Continued

from

New York

page

6, N. Y.—-150

Treasury

Refunding—Appraisal—New
Broadway, New York 5, N. Y.

Tax

120
Your

Nov.-5-by

Also in

year.

Hanseatic

Corp.,,

Co., 25 Broad Street,

Life

Insurance

Co.

—

York

5, N. Y. Also available

stock

Climax and Missouri

American

was

'•

Memorandum

Merrill

—

Lynch,

Pierce^ Fenner & Smith, Incorporated, 70 Pine Street,

140,000 shares

York

Program—Review—Hirsch

Aetna

Metal

offering

per

New York 4, N. Y.
Also in the same circular are reviews of
Florida Power & Light and Food
Machinery & Chemical.

Stock Offered
Rondout Corp. common

$1.00

copy;

are articles on Telephone of
Tomorrow;
Leesona Corp.; Montrose Chemical; Sherman Products.
:

■

Rondout Corp.

per

the November issue

made

memoranda

are

New

American

Pacific Railroad.

Broadcasting-Paramount Theaters, Inc.

Data

—

Oppenheimer, Neu & Co., 120 Broadway, New York 5, N. Y.'

Sandkuhl<&

Also in the

Co., Inc. and S. B. Cantor Co. at'
a price of $3.50 per share.

circular

same

are

data

Cenco Instrument Cor--

poration, Leesona Corporation, Philco Corporation, and Piper
Aircraft Corporation.

The

proceeds from the sale of
stock will be applied to the

this

purchase of the capital stock and
Paper Mills, Inc.

Ampex

for

pose's.

In November Investment Letter

—

reviews

are

Philips

Electronics,

and Flintkote.
of Spartans Industries.

general; corporate .pur¬

Anchor

Ilocking Glass — Report
Broadway, New York 4, N. Y.'

the merger of Rondout
Paper Mills into Rondout Corp.
the company will engage, in the
business

former's

industrial

memorandum

Carrtonc

Thomas

&
;

-—

papers.

McKinnon, 2

Bennett

Clark

Olin Mathieson

Chemical

Corp.

Laboratories,

was a

Boat Association and newsman on

the

York

New

Boston

"Herald Tribune,"

"Herald"

Providence

and

"Journal." Mr. Summers
.was sales manager of Nesbitt De¬
troit Bottling Co. and in charge
of sales for the Squirt Bottling
Company* Toledo, before his ap¬
pointment.
'
■
(R.

I.)

in the

circular is

same

Bridge Company Ltd.—Bulletin—Bache
Wall Street, New York 5, N. Y.

Eastern

Gas

Empire

Epstein, Leonard A. Gottlieb,
Hitzig, Alex Krasner, Arthur
S.
Libman, Jerome S. Reinert,
Charles J. Schlesinger II, Leonard
S.'

Weiser,

Wolfgang.

and George

(Special to The Financial Chronicle)

SAN- DIEGO,

Calif.

—

Hall

Other

an¬

the

Securities

Jacques,

Nomination

Mr;

Anderson

Alexander

tive

will .succeed

Yearley,

IV,

partner,

Corp.—Memorandum—Woodcock, Hess, Moyer & Co.,
Trust. Building, Philadelphia 9,- Pa.
Intertype Corporation—Report—Harris, Upham & Co.,
120 Broadway, New York
5, N. Y.
Harris Intertype
Corporation—Analysis—G. C. Haass & Co., 65
Broadway, Now York 6, N. Y.7
—-—f

Blair Adds to

selin
0f

ties Co.,

Brothers

First

Staff

(Special to The Financial Chronicle)

staff

Keller

Vice-President,

Director, Wallace H. Fulton

BOSTON, Mass. — Frederick J.
Buckley has been added to the
of

are:

Washington.

Joins Keller Bros.
(Special to The Financial Chronicle)

Holder, Jr. has been added to the

239

A Street.

CHICAGO, 111.—Charles W. Gos-

Securi-

Inc., Zero Court Street.,

has been

Blair

South

added

the

staff

Co., Incorporated, 105

Salle

Street.

Ingersoll
1

Rand

Wall

;

Shamrock
tax

Oil

exempt

Petroleum

Kent

8929 Wilshire

SAN

report

S^UiJUes
Corporation
.opened.
branch office
at 119 h;is
Merchants

RubendaI1 has joined the staff of

Corp.

Gas

and

list

Utility

dividends.

1958

Stocks

Street under the direction of Jane

Dean Witter & Co., First National

Von Brecht.

Building.

Corp.—Analysis—First Angeles

„

DIEGO,

„T._

„

Calif.

Flovd

—

„

Corporation,.

Boulevard, Beverly Hills, Calif.

Star Brewing

"Lone

features

Joins Dean Witter

HONOLULU, Hawaii—Columbine

Chemicals—Bulletin—Reynolds & Co.,

Broadway, New York 5, N. Y. Also available is

with

New Columbine Branch

Co.—Memorandum—Francis I. du Pont i& Co.,-

Street, New York 5, N. Y.

Company —Analysis

Muir Investment

—

Corp., 101 North St. Mary's, San Antonio 5, Tex.
Meredith
-

Publishing

Securities

Webster

Corporation, 90 Broad Street, New York 4, N. Y.

Multi Amp Electronic

Company—Bulletin—Stone

DON'T MISS IT

Corp.—Memorandum—G. Everett Parks

Co., 52 Broadway, New York 4, N.'Y.

Nazareth

Convent

Academy—Bulletin—B.

C. Ziegler and
West Bend, Wis.
Company—Report—Milwaukee Com¬
pany, 207 East Michigan Street, Milwaukee 2, Wis.

"AMERICAN BANKERS

Company, Security Building
Nekoosa

Edwards Paper

ASSOCIATION CONVENTION

Corporation—Report—Harbison & Hen¬
derson, 210 West Seventh Street, Los Angeles 14, Calif.
Purex Corporation, Ltd.—Analysis—Blyth Co.,
Inc., 14 Wall
Street, New York 5, N. Y.
;
Royal McBee Corporation—Anaylsis—Schweickhart & Co., 29
Broadway, New York 6, N. Y.
Security First National Bank—Analysis—Dean Witter & Co.,
45 Montgomery Street, San Francisco 6, Calif.

■

ISSUE"

■

THE CHRONICLE

United

With Francis I. du Pont
(Special to The Financial Chronicle)

Calif.—
C.
Spicer is now with
I.
du Pont
& Co., 317

FRANCISCO,

SAN

Jimmie
Francis

States Communications—Analysis—Heft, Kahn and In¬
fante, Inc., 320 Fulton Avenue, Hempstead, N. Y.
Universal Marion Corporation—Analysis—Edwards
& Hanly
100 North Franklin Stret, Hempstead, N. Y.

Warren
621

Brothers

South

Company—Analysis—Hill

Spring Street,

Richards

•

The 1 959 American Bankers Association Issue
will

cover

the addresses, activities and pertinent

editorial material relative

Co..

Los Angeles 14, Calif.

this

year's annual

Convention.

Montgomery St. He was formerly

Form Lee Ackerman Co.

With W. C. Langley
BOSTON,
Paxton
a

Mass.

has

—

become

associated

SCOTTSDALE, Ariz.—Lee Ackerman Securities Co., Inc. has been

Paul

W.
as

formed with offices at 70000 East

been

Street.

Chester R. Durgin
R.

Durgin,

25.

MacPherson

Fries,

passed

of 53.

suddenly Oet. 28 at the age
He was a partner in G. C.

Haas

away

Road

engage

Officers

business.

are

Co/

...

listed

change.

Curtis,
dent;
and
William
Secretary-Treasurer.

President;
Vice-Presi¬
R.
Yeager,

director

San

Diego Imperial Corp., savings and
loan
holding company recently

Malcolm

the New York Stock Ex¬

Staff

Glore, Forgan

CHICAGO, 111.

—

Donald P.

banking prospects.

Don't miss the opportunity to advertise your

Firm,

Corporation

Bank in

the issue

Hill

Street, members of the New York

Mr.

Midwest
Hill

Witter &

was

Co.

For

Space in This Number.

Stock

Exchanges.

formerly with Dean
in

California.

Glore,

Forgan & Co., 135 South La Salle

and

Regular Advertising Rates Will Prevail
*

has become associated with

BOSTON, Mass.—David L. Bar¬
ron,
Ralph L. Cox, Vera Cummings, James Patriquin and John
H. Sullivan, Jr. have been added
to the staff of Bache & Co., 21
Congress Street.

•

(Special to The Financial Chronicle)

Bache Adds

and

of the probable trends in
course of interest rates

activity, the

November 12, 1959

Now With

Hallingby, Jr., general part¬
White, Weld & Co., has
elected

Get your perspective
economic

ner

Leopold Ackerman II,

(Special to The Financial Chronicle)

Mills M. Fries
Mills

Camelback
securities

Boston, As¬
sistant Secretary of Lee Higginson
Corporation,
passed
away
Chester

Named Director

William

registered representative with
C. Langley & Co., 201 Devon¬

shire

Oct.

•

Wilson, Johnson & Higgins.

with

At¬

Co.,
1960

Southwest Co., Dallas; and Execu-*

is tantamount to election.

Conklin Or¬

for

New York, and James G. Dern,
Chicago, partner, Smith, Barney
&
Co.; Treasurer. James F,

Mr. Anderson is

Carolina

officers

Vice-Chairmen, Ralph C. Sheets.
Vice-President, Blyth & Co., Inc.,

Glenn
of

Humphrey

lanta.

Oregon Metallurgical

With H. C. Hudgins

staff of H. C. Hudgins & Co.,

President

Associates—Analysis—The First Boston
15 Broad Street, New York 5, N. Y.
Company—Bulletin—De Witt

has

Chairman

January, 1960.

Corp., Raleigh, N. C.

Fidelity-Philadelphia

of the New York Stock Exchange

Sol

Harris

Askern, Frank J. Corabi, Norman

Co.,

dealers,
as

Robinson

Securities

Gulf Oil

With Newburger, Loeb

exchanges, - an¬
nounce
that the following regis¬
tered representative have joined
theiV organization in their eight
New York City offices:
Bert E.

The Na¬

—

organization

Board of Governors to take office

mons &
Co., 56 Beaver Street, New York 5, N. Y.
Greyhound Corporation—Analysis—Alkow & Co., Inc., 40 Ex¬
change Place, New York 5, N. Y.

120

other

and

Anderson

ganization, 120 Broadway, New York 5, N. Y.
■
Erdman, Smock, Ilosley & Reed, Inc.—Memorandum—Sim¬

Newburger, Loeb & Co., 15 Broad

many

brokers
E.

Fuel

Petroleum

leading

nounced the nomination of

analysis of Allis-Chalmers Manu¬

Association

Dealers,

International Minerals &

and

Stieglitz,
-

Dominion
_

Street, New York City, members

WASHINGTON, D. C.
tional

Refining

Corporation,

partner in the
accounting
firm' of
James
C.
Finney & Co.
Mr. Johnson has
been
a
yacht broker, executive
secretary of the American Power
Finney

Oil

Securities

facturing Company.

Exchanges, has been announced.
Mr.

Alstyne, Noel

Corporation—Analysis— Loewi & Co.,
Incorporated, 225 East Mason Street, Milwaukee 2, Wis. Also

DETROIT, Mich. — Naming of
James C. Finney, Jr., Carl John¬
son
and Harry W.
Summers as
registered representatives on the
Detroit staff of Manley, Bennett

Building, members of
The New York and Detroit Stock

;

Van

Milling Machine Co.—Analysis—Halle
Wall Street, New York 5, N. Y.

& Co., Buhl

Cincinnati

With Manley,

study

—

same

Radio,

Inc.—Analysis—Mid South
Co., American Trust Building, Nashville 3, Tenn.

lightweight

other

and

Zenith

available

5, N. Y. Also available is

•

tissues

Also

British Industries Corp. — Memorandum
& Co., 52 Wall Street, New York

manufactur¬

distributing

and

Hayden,

—

Street, New York 4, N. Y. In the

American Airlines,

Upon

ing

Data

—

Stone & Co., 25 Broad

letter

notes of Rondout
and

NASD Nominates 1960 Officers

■

Post,

R.
I.; Russell W. Richie, VicePresident, The Philadelphia Sav¬

(1929)

Norwalk

zens

5896

■„

The Commercial & Financial Chronicle
25 Park

Place, New York 7, N. Y.

K.
.

The Commercial and Financial Chronicle

(1930)

The following statistical tabulations

Indications of Current

latest week

month available.

Thursday, November 5, 1959

production and other figures for the

cover

Dates shown in first column

■

Business Activity
Latest
AMERICAN

IRON

Steel

(per cent capacity)—.—

ingots and castings

AMERICAN PETROLEUM
oil

Crude

and

Nov.
Nov.

(net tons)

INSTITUTE:

gallons

—

(bbls.)—.—;

average

—

——

Revenue

CONSTRUCTION

ENGINEERING

12.8

74.5

§368,000

*371,000

362,000

2,011,000

6,839,025

6,875,075

23
23
23

6,858,325

BANK

7.759,000

7,722,000

28,111,000

28,078,000

27,546,000

2,157,000

1,954,000

11,796,000

2,523,000
12,071,000

5,902,000

5,999,000

12,155,000
6,333,000

23
23

177,833,000

178,732,000

180,896,000

168,350,000

33,176,000

33,440,000

32,217,000

23
23

181,445,000

179,990,000

172,401,000

58,699,000

*59,745,000

59,398,000

31,883,000
163,916,000
67,854,000

607,347

580,768

23
23

12,253,000

•

(Millions

Wholesale
Retail

7,227,00.

Total

518,499

527,267

568,853

JOTTON

(DEPT.

(running

SEED

AND

$272,924,000

182,800,000

105,881,006

Received

114,500,000

225,600,000

167,043.00G

Crushed

(tons)

State and municipal—————— Oct. 29
Federal
Oct. 29

113,900,000

96,200,000

120,000,000

146,820,001

Stocks

26,800,000

18,300.000

105,600,000

20,223,000

DEPARTMENT

STORE

ELECTRIC

Electric output
FAILURES

AVERAGE

———-——

INDUSTRIAL)

AND

(E.

(St. Louis)

;

Straits
MOODY'S

13,234,000

12,330,000

250

224

299

6.196c

$66.41

$46.17

$45.17

$43.17

$42.50

31.125c

23.700c

29.450c

27.725c

30.000<

Oct. 28

13.000c

—Oct. 28
Oct. 28

—

——.—————

at-

—

—.—

(New, York) at

12.800c

13.000c

12.500c

11.500c

Oct. 28
Oct. 28

12.000c

11.000c

24.700c

Oct. 28

101.625c

102.500c

*——

12.000c

12.500c,

82.85

83.44

81.88

87.92

84.04

84i04

83.79

89.92

Nov.

87.86

87.99

87.72

94.26

;

Baa

Group

Utilities

Nov.

85.72

85.33

92.93

Nov.

84.17

83.53.

89.64

Nov.

79.01

79.13

83.53

Nov.
Nov.
Nov.

3
3

82.65

82.90

82.77

87.86

83.40

82.52

89.64

86.11

85.98

86.24

92.35

83.53

Aaa--

—

-Nov.

4.24

4.17

4.34

3.62

Nov.

4.86

4.88

4.42

Nov.

4.57

4.56

4.58

4.12

Nov.

4.73

4.76

4.21

Nov.

4.85

4.90

4.44

5.26

4.90

4.95777"—
4:917
U <r'

4.96

4.57

4.98

4.44

4.11

4.69.

—

5127

Railroad Group —1_
Public Utilities Group

——-.2—Z—-———iZ-I-'Novr^
Nov.

4.97 ""

4.90

Nov.

4.70

Nov.

388.5

COMMODITY

INDEX

384.8

380.1

Production

Percentage of

(

(tons)

—.

(bales)

30—

—

at end of period

Oct. 24

291,955 >

285,609

295,039

317,823

332,662

336,246

monthly), unadjusted
(average daily), unadjusted—
(average daily), seasonally adjusted—•_
EMPLOYMENT AND PAYROLLS—U. S.
DEPT.
OF

ROUND-LOT

190

304,776

Oct. 24

_Oct. 24

437,298

523,694

502,306

421,384

Oct. 30

111.64

111.05

110.45

108.97

—_

TRANSACTIONS

FOR

ACCOUNT

LABOR—REVISED

purchases.

SERIES—Month

1,769,620

1,968,230

Short

sales

Oct.

314,600

343,680

Other

1,805,520
175,370

sales

Oct.

1,453,820

1,711,170

1,531,020

1,899,500

—Oct.

1,768,420

2,054,850

1,706,390

2,409,850

Total

Other

sales

transactions

Total

sales

Other

sales

Total
Other

initiated

—

manufacturing
1——
Payroll Indexes
(1947-49
Average
All

manufacturing

Estimated

number

;

sales

Durable

goods
Nondurable goods
FACTORY

—

•

EARNINGS AND

ESTIMATE

—

DEPT.

—

Short sales
Other

Total

——

All

goods

sales

round-lot

transactions

for account of

—

LIFE

INSURANCE

;

INSURANCE—Month,

Total purchases

Short

sales

PAYMENTS

Other

Total

.—

August:

sales

DEALERS

Odd-lot

AND

SPECIALISTS

SECURITIES

sales -by

Number

Dollar

—

dealers

EXCHANGE

544,310

322,820

691,550

Oct.

392,610

602,020

377,220

735,350

Group

Oct.

(customers'

504,630

905,390

76,120

186,090

580,063

824,580
145,380
953,415

781,065

1,141,580

743,013

1,098,795

857,185

1,327,670

2,920,278

3,362,790

2,658,300

4,119,750

532,100

546,770

305,890

740,240

Dollar

sales

2,371,943

3,208,895

2,634,905

3,732,630

3,755,665

2,940,795

4,472,870

EXCHANGE

AND

FOR ACCOUNT

Total

round-lot

Short

Other

$70,337,916

STOCK

MEMBERS

2,140,798
$104,351,503

—Oct.

10,441

22,681

19,943

Oct.

8,473

875,188

Oct.

$44,332,645

1,115,193
$55,751,097

1,075,563
$55,862,299

$101,053,962

190,930

242,450

256,150

MONEY IN

All

190~930

242,i50

256~150

681~860

Oct.

491,640

775,130

557,180

646,800

Food

11,663,290
12,306,270

Oct. 9

13,409,690
14,171,610

902,850

10,999,690

19,287,560

11,480,520

20,190,410

WHOLESALE PRICES, NEW SERIES—U. S. DEPT. OF
LABOR—(1947-49 = 190):

Farm

vegetables,

fresh

•

crops

Processed

foods

Oct. 27
<

All
*

commodities other than farm

Revised

of Jan.

figure,

f Includes

and foods...

955,000 barrels

Oct. 27

foreign

*cru

-<e

one-half cent

pound.

"'118.6

86.8

86.1

86.9

106.1

106.8

109.6

94.8

94.7

98.2

103.8

128.4

126.1

§Based

128.5
new

annual

90.9

capacity of

147.633,670 ton
reported since introduction o*

tNumoer of orders not
basis at centers where
freight from,East St. Louis exceeds

119.2

106.3

128.6

runs

1959, as against Jan. 1, 1958 basis of 140,742,570 tons.
Monthly Investment Plan.
tPrime Western Zinc sold on delivered
as

119.1

8,814,000
6,941,000

96.05

Ta!

80.GO

80.00

$85.39

-fii. ■ U

92.46

77.03

40.5.

-7-

39.9

40.7

40.9

39.9

40.0

39.5

40.2

$2.19

'2.36

$2.14

2.35

2.30

2.02

2.00

1.95

$245,200,000
44,200,000

$247,100,000

$322,600,000

47,400,000

50,900,000

9,900,000

9,500,000

112,500,000
104,300,000

54,600,000
124,700,000
103,200,000

108,300,000

$567,800,000

$586,900,000

$537,000
'
, 000
w

$3,932

$4,047

$3,957

48,700,000

97,000,000

558

541

863

887

599

$5,353

$5,475

$5,153

$29,650

♦$30,079

21,842

*21,711

$51,492

*$51,790

29,252

*30,856

$32,000,000

$31,900,000

239

597

products

__—
—

^——

—

and

eggs—-1
—

ESTATE

AREAS

—

FINANCING
S.

—

HOME

companies
trust companies

-savings

LOAN

—

—
.

——

Miscellaneous lending institutions

AND

"BUREAU of CENSUS

Month

(000's

26,3f

235

255

221

228

214

182

280

281

292

156

159

198

201

196

230

211

320

204

214

217

—

157

164

124

510

504

485

256

254

278

265

251

263

307

314

340

143

139

171

244

249

204

$1,203,179

$1,235,881

$995,170

137.r»91

1?7 079

l">q 859

505,337

561.487

475,771

167.151

187.395

169.183

33G.431

366 786

292.227

521,586

560,318

472,411

$3,099,806

$2,534,621

$1,396,700

*$1,463 600

$1,39G.40<]

1,189,800

1,248,400

$2,871,075'

UNITED1 STATES^"EXPORTS

Imports

$31,400,01

BANK

—

banksj-

Individuals

21,21

$48,8(

NONFARM

BOARD—Month of August (000's
omitted):
Savings and loan associations
and

$27,6£

220

146
—

Livestock

Mutual

119.3

Oct. 27

—

15,755,000

9,073,000

*7,099,000

15:

Tobacco

Insurance

Oct. 27

products

*16,172,000

INDEX

commodities

16,321,000
9,204,000
7,117,000

AGRICUL¬

Sept.

Oil-bearing
Potatoes

Banks

Commodity Group—
All

155.7

Fruit

REAL

480,836

grains

Poultry'
761,920

*165.0

•

Wool

642,980

1910-1914=100—As

products-

Meat .animals

TRANSACTIONS

96.5

167.9

DEPT.
—

—

Feed, grains arid hay

Dairy

(SHARES):

—

CIRCULATION—TREASURY

farm

—

Cotton

sales—

^sales

Crops

681,860

..Oct.

Oct.

*98.5

(millions of dollars):

Sales

2,153,819

STOCK

sales

5,361,000

99.6

6,579,000

SALES

Commercial
2,162.292

SALES ON THE N.

ROUND-LOT

$82,644,477

Oct.

dealers— Number

STOCK

1,395,209

1,095,506

Oct.

11,940,000

*5,485,000

Sept.

—

Total

TURE—

1,667,559

1,137,874

Other sales

ROUND-LOT

$58,801,306

*12,181,000
*6,696,000

Durables

885,629

.—

Round-lot purchases by

TOTAL

AND

Aug. 31 (000's omitted).
RECEIVED BY FARMERS
NUMBER
U. S. DEPT.

Oct.

—

Round-lot sales by dealers—
Number of shares—Total sales
Short

Month of August
Inventories—

Oct.

12,317,000
6,816,000
5,501,000

Nondurables

2,904,043

1,152,174

125

INSTITUTE

Month

—

other sales

value

ixrctnnvmwTmr.

—

PRICES

Oct.

short sales

Customers'

ILTC

PURCHASES

MANUFACTURERS' INVENTORIES

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales—
Customers'

•

Ordinary

STOCK

—

129

9,300,000
52,300,000

COMMISSION

value

—„!
L_

—

LIFE
INSURANCE
(000,000*s omitted):

Industrial

Oct.

EXCHANGE

•

—_

338,060

Oct.

"126

102

133

i_.

——

INSURANCE

Oct.

104

133
129

Total
LIFE

Oct.

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

510,350

values

dividends

43,800

94,348

105,756

TO-

—

2,542,650

Policy

671,710

219,140

45,000
63,800

INSTITUTE OF LIFE*

—

Death benefits
Matured endowments

54,400

Oct.

109,300

159,800

$2.21

BENEFIT

POLICYHOLDERS

348,150

Oct.

134,800
134,309

■

Durable goods
Nondurable goods

57,710

members—

62,962

40.4

Nondurable goods'

569,980

162,950

90,426
66,441

44,900

_■—

Hourly earnings—► >
All
manufacturing

54,550

33,100
34,600

102,200

$89.28

...

u__

manufacturing

Durable

424,220

Oct.

43,100
112,200

—

726,438

142,293

HOURS—WEEKLY

Durable goods
Nondurable goods——
Honrs—

135,067

98,600

LABOR—Month of September:

Weekly earnings—
All
manufacturing

Oct.

70,100

217,700

100)—

Total

purchases

71,215

226,900

manufacturing—

Oct.

the floor—

87,800

employees in manufac¬

turing industries—
A11

———

transactions initiated,

Total

off the floor—

purchases

Short

506,842

97,000

manufacturing (production workers)
goods
Nondurable goods
:—.
Employment indexes (1947-49 Avge. = 100)—
Durable

Surrender
Oct.

306,751

All

Disability payments
Annuity payments

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered.—
Total

482,208

149,300

26o,50C

130

—__

AVERAGE

314,400

501,100
887,500

September:

291,364

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

5,172,897

ERAL

Sales

392.9

Oct. 24

activity

Unfilled orders

—

STORE SALES SECOND
FEDRESERVE
DISTRICT
FEDERAL
RESERVE BANK OF NEW
YORK—1947-49
Average =199—Month of September:
Sales (average

(tons)

$1,723,100

—

DEPARTMENT

4.25

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

—

Industrials Group

MOODY'S

—

(tons)

AVERAGE

—

$331,20*?

Meal—

Stocks (bales) Sept.
Produced (bales)

MOODY'S BOND YIELD DAILY AVERAGES:

U. S. Government Bonds

$1,843,700

All

Nov.

Aaa

$85,400

1,129,100

—

Linters—

97.125.

Nov.
.—

-——

$89,800

PROD-

(tons)—

Sept.

Stocks (tons) Sept.
Produced
(bales)

AVERAGES:

DAILY

PRICES

Average corporate

SEED

Sales

32.175c

32.375c

;

Group
Industrials Group

12,762,000

273

32.875c

U. S. Government Bonds

Public

12,978,000

Oct. 29

—

———————.——

and

Sfocks

140

Oct. 31

$89,400

G,995,965

—

Average corporate.

Railroad

145

160

Oct. 28
———.—-Oct. 28
—

at_

BOND

151

—Oct. 27
Oct. 27
;—Oct. 27

—

Louis) at—
(primary pig. 99.5% )

tin

Oct. 24

12,100
23,900

COMMERCE):

Hulls-

Zinc (East St.
Aluminum

mills

(tons)

Shipped

(delivered)

407,000

QUOTATIONS):

(New York)

Lead

8,712,000

422,000

PRICES:

Export refinery

tZinc

7,795,000

365,000

bales)

COTTON

(tons) Sept.
Produced (tons)

—:

Electrolytic copper—
Domestic refinery at
Lead

DUN

—

(per lb.)___

PRICES

"7,975,000

433,000

$49,400

12,500

X25.100

Seed—

Shipped

Pig iron (per gross ton)
Scrap steel (per gross ton)
METAL

—

—_—

COMPOSITE

Finished steel

I«0

(in 000 kwh.)

(COMMERCIAL

AGE

8,100,000

$52,200

12,500

24,900

COMMERCE—Month of

Stocks

INSTITUTE:

BRADSTREET, INC.
IRON

Cake

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1947-49
EDISON

Cotton

(U. S. BUREAU OF MINES):

Oct. 24
Oct. 24

$135,205,000

September:

$408,400,000

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)

$208,131,000

$52,000

———-—-—

—

GINNING

Oct.

146,500,000

COAL OUTPUT

Ago

——

$261,000,000

———

Year

Month

$215,938,000

——

177,800,000
140,700,000

Public construction.-—

Month

COM¬

——————

I'L'TS—DEPT. OF

.—-———

—

Latest
OF

dollars):

$318,500,000

construction

of that date:

Month of August

-1

—r-

omitted)

674,845

521,662

DEPT.

are as

CASn DIVIDENDS—PUBLICLY REPORTED BY
U. S. CORPORATIONS—U. S. DEPT. OF
COMMERCE — Month of September (000's

ENGINEERING

—

GOVERNORS

—

———t—4

COTTON

587,079

Manufacturing

Oct. 29
—-Oct. 29
i—.——————Oct. 29

U. S.

Private

MERCE NEW SERIES

NEWS-RECORD:
Total

DEBITS—BOARD

THE FEDERAL RESERVE SYSTEM—-Month
of September (000's omitted)—

6,918,635
7,753,000

117,662,000
27,236,000
2,140,000

■

freight loaded (number of cars)
.— Oct. 24
freight received from connections (no. of cars)—Oct. 24

Revenue
CIVIL

of quotations,

cases

*13.1

RAILROADS:

AMERICAN

—

...

ASSOCIATION

Ago

or,

BUSINESS INVENTORIES

(bbls.)

output

Year

Ago

513.0

•

each)__

to stills—daily

runs

Gasoline

Month

Week

that date,

output—daily average (bbls. of

condensate

Oct.
.Oct.
Oct.
Kerosene output (bbls.)—-—
-—————
.— Oct.
Distillate fuel oil output (bbls.)
—T;
——— Oct.
Residual fuel oil output (bbls.)-—
———.——Oct.
Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at—Oct.
Kerosene (bbls.) at—
——;—~~
OctDistillate fuel oil (bbls.) at_
Oct.
Residual fuel oil (bbls.) at
Oct.
42

Crude

month ended

Week

INSTITUTE:

STEEL

AND

Indicated Steel operations
Equivalent to—

either for the

week

are

IMPORTS
of

August-

omitted):

—rr-r-

950,200

Volume

19u

Number 5896

The Commercial ancl Financial Chronicle

(1931)

The Security I Like Best...
Continued from page 2
the

ground

years

been in

-in

the United States. These lines had

internal

rosion.
are

now

will

protection

cor¬

these lines

corroded and

have leaks.

cost

clean

from

cases

many

about

$950,000,000 to
protect
these
lines.

and

Large diameter steel

pipe is ex¬
into use it

pensive, when put
begins to corrode from

chemical

combinations in gas, oil and prod¬
ucts.

preventative

measures

taken, the lines

are

have to be
eventually cleaned and protected
against corrosion to extend the
life

abandoned: A twenty-inch
from Texas
to
New
York

line
costs

approximately $250,000,000.
One can readily see how impor¬
tant
it
is for gas
transmission
companies to protect their invest¬
ments. Elaborate

precautions must

simple, yet fully protected by
The equipment consists
two radio equipped trucks with

patents.
of

haul

Pipelife

developed

has

the only patents on a

method to

the

coat

and

practi¬

inside

pipelines of any diameter while
they are in place in the ground.
In many instances the gas trans¬
mission

lines

can

cleaned

and

coated without seriously reducing
the delivery of gas. Oil products
and

water

lines

can

coated

without

interrupting delivery, by
by-pass line laid on the
Five
mile-sectionsof
pipeline are cleaned and coated
while the products move through
the by-pass line.
using

ground.

would

Pipelife

alone

cent

available.
would

business

gross

perform

Ten

per¬

amount

approximately
the
next
ten
licensed its

$95,000,000
years.
PLC

over

method

contractors

has

for

portion of the poten¬

business

tial

impossible

Corporation

than

will

and

receive

a
royalty
of
approxi¬
$250.00 per mile of pipe,
that otherr eompanies
coat with
their method. In addition, Pipelife
will provide the technical "knowhow," materials and specialized
equipment. A licensee is expected
to start coating transmission lines

mately

Gas

France

late

1959.

licensed contractor is awaiting the

equipment

specialized
livered

de¬

start

coating a line in
England. Italian pipeline interests
now
inquiring about the use
Pipelife patents and "knowhow" to coat the gas transmission
lines in Northern Italy. Immediate
tests are planned for a 1,300 mile,
10 inch, new line in Canada to
move
gasoline
products
and
are

resin

The

line

thoroughly cleaned
with wire brush pigs put through
the line With air pressure, then a
quantity of liquid solvent is run
through the line and the pipe
dried

with

compressed air. The
multiple
Pipelife plug
assembly is put into the loading
barrel followed by the rear plug
assembly. The epoxy resin paint

forward

metered

into

the loading joint
the
two
plugs in suf¬
quantity to put a 5 to 10
coating on the pipe. Air pres¬

between

ficient

sure;,

is then applied behind the
plug in sufficient quantity to
the back pressure caus¬

overcome

ing the train of plugs and coating
material to move down the pipe¬
line at
an
accurately controlled

velocity, spreading
compressing a tough uniform
thickness of epoxy resin onto the
and

interior

surface

time

takes

however,
coated

mile

pipeline.
clean the pipe,

the

miles
hours.

section

can

The

for

coating, and so on until the line
is completed. New pipe does not
require
elaborate
cleaning and

The

the

1920s

buried

in the ground

ternal

wrapping to
The

was

ning in
outside

lines

laid

signs

the

ex¬

first

1935, wrapping was
a
normal
practice
protection. Some of

sidered

the

1920s

internal

1947.

about

prevent cor¬
cross-country
wrapped in 1928. Begin¬

rosion.
line

with

were

the

showed

corrosion

Kerr-McGee

company

performed

oil

many

contracts

has

the

line in

place in 1947. This line is

still

use

with

minimum

turning metal

native

state.

petroleum
2-billion

damage

industry
dollars

back

every

into

estimated
year

for the

most

equipment used
in
finding, producing, moving, proc¬
essing and marketing oil and gas
and their by-products. Even the
new
pipelines
are
considering
resin coating in place im¬
mediately when laid to prevent
epoxy

shortening

economic life.-s "
The

Pipelife

Method

has

The

been

the

frequencies

and

part

With

CHICAGO, 111.—"William V. Mor¬

Co., Incorporated, 1433
Street, members of the

announce

Miller is

have

the New York and Midwest Stock

DIVIDEND

associated with them

now

THE TITLE GUARANTEE

COMPANY
DIVIDEND

DIVIDEND

NOTICES

has
spent
large
sums
of money since 1954, when
epoxy resin was first formulated,
on
research and development.
Hailed
as
"Pipeline News of
the Year" by a leading Pipeline
trade journal was recent news of
company

increase of

tests

13%

conducted

in throughput

by a grouo of

antee

backing, PLC is now in
position to go after the big trans¬

clared an increase in the
dividend to 33% cents per share des¬
ignated as the fourth regular quarterannual dividend for 1959, payable
November 20„ 1959 to stockholders of

F1INTK0TE

lines.

licensees

and

contracts

the

record

their

lucrative

own

THE FLINTK0TE COMPANY
New York 20,

(1)

"PLC"
the

the

owns

patents

"know-how"

that

The

management
strated

the

has

company

value

major

oil

$1.12

demon¬

its

and

ber

com¬

15,

1959

record

panies.

the

November

(3)

Substantial

financial

20,

Second

Also declared
share

G. F. Cronmiller,

1959.

Vice President and

dividend

Curtis

method

Company.
the

and

Mr.

inventor

employed

Arvil
of

the

re¬

development by Pipe-

Corporation. It is estimated
approximately a million dol¬
lars has been rspent on research
that

since 1951. These funds have

Limited
Dividend No. 52

come

from

equity capital furnished by

some

600 stockholders and operat¬

revenues.

high

around

The stock has had

of $4.00
a

dollar.

and
At

is currently
the

present

able November 30, 1959.
on December 11,
1959 to the holders pf,,record at the close
of
business
on
December
4,
1959 of

American shares issued under the terms

The Board of

Oct.

Products, Inc. at
share.
This
offering

oversubscribed

was

the

share,

78,572
for

the

the
are

accounts

payable Dec.

10,

The

net

the

working

non-resident

Pipelife Method of coating

shareholders

tax

F. A.

ness on

SCHECK, Secretary.

York, New York, October 29, 1959.

November 10,1959.
C. V.

£sso

BOULTON,

used

incorporated
in
California on May
13, 1949,
under the name of Kappler En¬
gineering
and
Manufacturing
Corp. In July of the same year,
E. P. Gertsch purchased all of the
outstanding stock of the company
ancl
its
name
was
changed to
Gertsch Products, Inc.
The
company's principal
of¬

STANDARD OIL COMPANY
(INCORPORATED IN

590 Madison Avenue
New York 22, N. Y.

October 27,

NEW

has declared

1959

-1'

record at
ness

the close of busi¬

November 9,

30 Rockefeller Plaza,. New

1959.

York 20, N. Y.

UNION

CARBIDE
The United Gas

Improvement
New York,

October 28, 1959—

Company

the Board of Directors of Union

Carbide Corporation has today
declared a Quarterly Dividend of

ninety cents (90tf)

GOODALL
RUBBER

1959

The Board of Directors has declared

DIVIDENDS

quarterly dividend of
12V2c per share on all Common Stock outstanding and
regular semi-annual dividend of $2.50 per share on the 5%
Preferred Stock, both payable November 16,1959 to stock¬
holders of record at the close of business November 2,1959.
a

H. G.

October 27, 1959

the

stockholders of record

Nov. 6,

1959. The last Quarterly

Dividend
PREFERRED

outstanding capital stock of the
Corporation, payable December 1,

COMPANY

COMMON AND

per

DUSCH

Vice President & Secretary

was

ninety cents (90^)

share paid September 1,1959.
Payment of this Quarterly Divi¬

DIVIDEND NOTICE

quarterly dividend of 60c per
share on the Common Stock, par
A

value $13.50 per

payable

1959

stockholders

November

per

dend

December 1 will make

total

of $3.60 per share paid in

1959. In 1958,
also paid.

$3.60

per

share was

share, has been

declared
to

December 18,
of record

30,1959..

quarterly dividend of $1.06Ji

share on the 4}4 % Preferred
Stock has been declared payable
per

January 1, I960 to

stockholders

of record November 30,1959.

JOHN F. SHANKLIN

J. H. Mackenzie, Treasurer

Secretary and Treasurer
UNION

CARBIDE

CORPORATION

share on Octo¬

December 10,
stockholders
of

payable

1959,
t'»i

per

1959. This dividend

ber 29,

IINTERNATIONAL BUSINESS MACHINES CORP.

the capital stock

60 cents

IBM

maintained at 3211 South

JERSEY)

The Board of Directors

Cash Dividend

Cienega Boulevard, Los
Angeles 16, California.
The company is engaged in the
development,
manufacture
and

DIVIDEND NOTICE

rate of 6.45% will be deducted.
By Order of the Board of Directors,

New

capital

The company was

are

the

Treasurer

of the company.

fices

Africa

of¬

of certain

proceeds will

increase

Deposit Agreement dated June 24,
1946. The dividend will amount to approxi¬
mately $2.10 per share, subject, however,
to any change which may occur in the rate
of exchange for South Africa funds
prior
to November 30,
1959. Union of South

stockholders of

selling stockholders.
to

of the

record at the close of busi¬

company

being

per

1959, to

107,143 shares offered,
shares are being offered
of

$.60

dividend of

cash

the

account

Business

Corporation has

today declared a quarterly

$14

and

Directors of

International
Machines

closed.

the

The Directors authorized the distribu¬

tion of the said dividend

DIVIDEND

Gertsch

heavily

shillingsjper share oa
Ordinary Shares of the Con
.ompany pay-

the

CONSECUTIVE

QUARTERLY

ing

The Board of Directors today declared a
dividend of fifteen

IBM

publicly offered 107,143 shares of
capital stock; (without par value)

and

Tomlinson

O'okiep Copper Gompany

♦re¬

books

Secretary

Pittsburgh, October 29, 1959

Stock All Sold

per

Jr.

consecutive

LAD

Gertsch Prods. Inc.

November

payable Decem¬

payable
to shareholders of
10,. 1959.

1959

to
stockholders of
close of business

♦lOCth

179™

November 4, 1959.

Over-the-Counter Market.

Co.,

DIVIDEND of $.45 per

COMMON.- STOCK,

December

Treasurer

for

1959

(11/2%) PER CENT or $1.50 per share
PREFERRED STOCK, payable Janu¬
20, 1960 to shareholders of record
January 6, 1960.

and

Schwabacher

31,

ONE-HALF

and

ary

JAMES E. MCCAULEY

re¬

for

declared

has

December
OWE

record
are

Directors

ending

DIVIDEND

per

These dividends

process

gas

per

$4.50 Series A Convertible
Preferred Stock

expert

has

and

Board

quarter

cents per

$4 Cumulative Preferred Stock

vitally necessary to the internal
inplace coating of oil and gas and
products transmission lines.
(2)

follows*

have been declared as

Common Stock*

has

and

N. Y.

quarterly dividends

reasons:

fered

Pipelife Corporation has 6,000,000 shares authorized and 1,800,000 outstanding. The present Cor¬
poration was formed in 1951. The
predecessor company was Curtis

•

President

Line
America

of Building Products in

Conclusion

28,571

Finance

November 0, 1959.

Manufacturer of the Broadest

should do

company

Pipelife Corporation appears to
have
merit
as
a
capital gains
speculation for the following

for

and

WILLIAM H. DEATLY

well in the future.

mission

Capitalization

Company have de¬

With royalties from their
patents,
sale of special equipment to their

major oil and gas companies using
the
"Pipelife
Process"
on
tne
cleaning and coating of 12 miles
of
mainline
24
inch gas
trans¬
line.

NOTICE

Trustees of The Title Guar¬

substantial

transmission

NOTICES

that Paul Mellis

financial

continental

Co., 120
Street, members of

Exchanges.

registered representative.

Meyerhoff &

South La Salle

excel¬

are

recent

Freehling, Meyerhoff

(Special to The Financial Chronicle)

ris has been adde&~to the staff of

voltages.

change,

ac¬

cepted by the oil and gas industry.
The

their

radio

of AC

With

gen¬

Philadelphia-Baltimore Stock Ex¬

perfecting methods and
getting the engineering down to
a fine
point, but are not too prof¬

corrosion vfrom

and

the

Freehling,

costing the

measurement

in¬

With H. A. Rieche

for

itable.

electronic

primarily

PHILADELPHIA,. Pa. —H.

and. gas transmission
aforementioned.
The

transmission

maintenance. Corrosion is nature's
way

eration

division

Walnut

with

been short lines which
lent

used

Riecke

successfully

contracts

companies

precision

accept some of the
being negotiated.

predecessor to Pipelife Corp.,
gas

coated

its

now

Future Earnings
The

ment

others.

and

Curtis-Tomlinson Co.,
first

process

sale

struments
fields

con¬

for

the

continual
develop¬
performance of con¬
has
been
placed
at
its
Pipelife has coated oil, gas or tracts
water
lines
for
Shell
Oil
Co., disposal. With the accumulation of
Gulf
Oil, Humble Oil, Interna¬ sound engineering "know-how,"
tional
Minerals
&
Chemicals, the company now appears to be
Warren
Petroleum, Phillips Oil ready to show worthwhile earn¬
Co.,
Sunray,
Ohio
Oil,
Sohio, ings. The stock is traded in the
Performed

life

pipelines

contracts

sources

Work

search and

Industry

the

banking facilities which will

enable PLC to

be coated with less expense.

can

powdered sulphur. The revenue
from
foreign royalty sources
should eventually be considerable
to Pipelife stockholders.

and

prepared

putting

equipment.:
A
of Texas industrialists has
provided the company with loans

uniform

and

research

is
on

specialized

paint,

loading barrel
same
size as
pipe to be coated and an
unloading
barrel,
and
special
plugs. Twenty mile sections of the
pipeline are the most convenient.

rear

owns

One tank truck

epoxy

and

group

the

product loss, even fires and
explosions.

cal

the

and

gages

Curtis

engineers
finishing touches

mill

units.

compressor

flow

and

pressure

be taken to prevent corrosion and
the
resultant,
leaks, which rmay
cause

Mr.
of

and

other pipelines that have

time
staff

Philadelphia, October 27,1959.

The Commercial and Financial Chronicle

(1932)

Thursday, November 5, 1959

■j,

COMING

WASHINGTON AND YOU
A,

EVENTS

behind-the-scenes interpreta tjqn£
from the nation's

capital

IN INVESTMENT FIELD

WASHINGTON, D. C.
for

drive

current

trade doors between

try

—

this

coun¬

Russia, inspired by a
new
hope for
"mutual

grumbles.

trust" between the two powers,

fight
>
,

strictly the
progeny of Russian and U. S.
diplomats. It's aimed at political
results, rather than economic
benefits to this country.
American
Investors

business

firms

discount

can

and

most

tapping

soon

ket

tremendous

mar¬

supplying

mer¬

Russians

chandise-starved
what

consider

ties and

nology. '-v..;

process.

The

the
one
that
the
negotiators will
consider first, is agreement on
Russia's
payment of its huge
World

lend-lease

War

vertible

estimated at one time
billion, now is open for
at $800 million by

U. S. businessmen

only $300

to give credit for a
in
all probability

likely

are
.*

million.

Congressional Action Needed
block

this

will

cleared

find
copied, pro¬
duced in Russia, and competing
with
them
for
other foreign
markets.

behind

Lurking

trade drive must go to

some

ence

tions

Congress
problems solved.
special restric¬
imports of Soviet goods,

other

involve

which

greatly irritate

ently

sians. In
of

minor, appar¬
the Rus¬
restrictions

although
some

cases,

specific Red goods
In others, duties

are

involved.

Russian imports are higher than
on
similar
goods from other

countries.
Credit

problem
U.

going

trade.

want

ufrder

First,

get

big
in
the

from

out

which

law

increase

any

S.-Russian

Reds

longer

which

countries
to

the

six

than

prohibits

months

owe

old

debts

Government. Rus¬

sia is affected because it refuses
to

honor

Czarist

old

some

Even after these

cleared

The

—

serious

other
•

away

defaulted

bonds.

Government

questions
if

they

are

are—

Department,

almost unusual sop to the

private

economy, has been de¬
manding that the Reds agree in
advance

honor

to pay

royalties and to
patents and copy¬

rights. The Soviets
is

matter

say

that this

worked

out

between themselves and private
U. S. firms.
the

past, the Soviets have
played
fast
and
loose
with
patented processes, pirating the
best

features

most

the

goods that have been sent there.
Warfare

Forecast

American

machinery manu¬
long
been
cutprice sales of
Russian
equipment
overseas.
Last year, the Reds by skill¬
fully selling in Europe only
22,000 tons of aluminum (some
have

facturers

with

plagued

which

believed

this country

the

market

by two

aluminum

world

cents

ment

in this country for use in

U. S. schools and

colleges. Their

prices.

It took

The

Reds

are

obtaining

most

interested

technological data

'Afrt

act

Congress to prevent Federal aid
funds designed
to bolster our
scientific education from, being
used to purchase these "made
in Russia" goods.

once-useless

resources

becoming valuable.

are

countries

The

Ghama,

Nigeria, and others

that

better

Government

fully

pay

will

recent

shipped

pig

Reds

cheer¬

the freight.

another

case,

the

one

the

investments

small

Detroit

Binder Adds Two

bilities

endless.

are

The

governments
of
these countries give liberal ad¬
vantages to firms seeking a sales
toe hold. Particularly

sought are
and training to pro¬

machines

kinds

all

duce

metal

fabri¬

building materials, raw
materials processing, consumer
goods, and to service equipment.
(The country now imports 800
cars
afcjnonth, but a mechanic

LOS ANGELES, Calif.

Despite

its

extreme

Weight,

for

long

about

pig

the

become, affiliated with Binder &
Co., Inc., 8400 ' Sunset Boulevard.
was formerly with AlkowT
& Co.

cating,

hard

find.)

With traditional

kets

foreign
becoming

rapidly

mar¬
com¬

Hayden, Stone Adds
(Special to The Financial Chronicle)

LOS

was

American

Seek

Hayden,

the

the only
markets
American

to
be
growth

prove

long%ange

available to high-cost

producers.
is

intended to

re¬

flect the "behind the scene" inter¬
pretation from the nations Capital
and may or may not coincide tvith
the "Chronicle's"

own

views.]

American
to

machines

and

know-

begin industrialization.
only
one
thirty-

year,

national out¬

fourth of the total

in
Nigeria
manufacturing.

put

These

from

came

(Special to The Financial Chronicle)

LOS

drive,
in the

even
though probably
long run to prove'abortive, is
getting most attention, the U. S.

has

been

encour¬

ANGELES, Calif.—Roderick
with

now

pany,

Jackson

was

Dillon,

man

Hutton

Com¬

623 South Spring Street. Mr.

formerly with East¬

Union

Securities

Co,

to spend. Climate, repu¬

tation

for

backwardness,

labor

salesmen

African
oil

that

the

into the
particularly

gone

continent,
is

also

resource
raw.

They

D. W.

Olive

Holmes & Co., 1052 East

Avenue.

was

formerly

with Francis I. du Pont & Co. and

Howard C. Traywick &

Atlanta

Inc.,

Company,

Federal

Savings

Building.

have

found

the

area's

although
say

Joins A. G. Edwards
Two With Freschi

and

But com¬

away.

companies,

labor

ATLANTA, Ga.—Grover N. Allen
has
been added
to the staff of

that with

(Special to The Financial Chronicle)

BELLEVILLE,

(Special to The Financial Chronicle)

have

shortages

panies who have

(Special to The Financial Chronicle)

Calif. — Richard
J.
Martin has been added to the staff
FRESNO,

the

have

money

skilled

Howard Tray wick Adds

E. F. Hutton & Company.

countries

Ralph J.
Steen have

GLENDALE, Calif.
and

Smith

Billie

has

Tiernan

—

111.

—

joined

Edwards &

Robert

the

joined

the

Freschi,
Avenue.

staff

1032
Mr.

Raymond

North

Steen

was

W.j

staff

of!

Sons, 13 Public

He was formerly
Newhard, Ccok & Co.
Square.

withj

Glendale
formerly

with Fairman & Co.

Attention Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head Mills

Official Films

s£(

Southeastern Pub.

to*1

Our

Carl Marks
20 BROAD

Continent

Two With E. F. Hutton

Co. Inc.

New

SECURITIES
STREET

TEL: HANOVER 2-0050

•

Serv.

York telephone number is

CAnal 6-3840
V

While the Russian trade

Government

5657 Wilformerly

was

(Special to The Financial Chronicle)

strike.

Dark

D. Hall and Robert E. Jackson are

[This column

is crying for

FOREIGN
In

Co.,

with McCormick & Co.

and

propa¬

coinciding with

Stone

shire Boulevard.

petitively unprofitable, the un¬
developed areas such as Africa

Now With D. W. Holmes

Know-How

But the country

20%

simply

ANGELES, Calif.—Wayne L,

Bowen has become connected with

iron

wasn't for profit,
was relatively

shipment

Willard

Mr. Lea

Dayton.

journey
the

—

H. Lea and Herman Winters have

through

and

the

(Special to The Financial Chronicle)

Canada which eventually wound
up

Ballroom

training,

the labor pool

they need, and the sales possi¬

may

biggest

iron

Grand

spend.

the

sian

country

population of 40 mil¬
lion
and
a
large
land
area,
Nigeria has a national income
of $2.7 billion a
year, mostly
from
agriculture,
petroleum,
and
tin.
The
government has
some
$400 million in sterling
credits
in
English
banks
to

propaganda

The Rus¬

experts

possibilities.

With

kept

purposes.

are

recently: re¬
turned from Nigeria and poirits

Further, tariffs are no deter¬
rent when dumping is conducted
for
political, economic, of

steel

o^e-

Trade Prospects Bright

free, world.

economic:

it is
now
beginning to awaken,
partly because the old colonial
empires are crumbling and also

Last

for

ex¬

stone age for centuries. But

how

from

were

are pretty clearly
aiming to open trade doors not

the

slumbering

this

country

at :th*

April 8, 1960 (New York City) .
>
New York Security Dealers As¬

She can't type."

—

they can build

The dark continent has been

prices delivered, tariff paid, in

that the Reds

pound.

More recently, the Reds made
deal to sell scientific equip¬

jab

war

have

in fabricated form)

broke

nomic

the

crept into this country.

ganda

fruitful

business

small.

changes,
but
for
their
own
technological improvement and
to help them conduct their eco¬

areas

a r a

'■

oc¬

the

State

Department's approach to
question, comments

has

Most

goods.

dumping

since the amount

trade

Reds has

ing

diplomat not quite in
complete
sympathy
with
the

economically

sub-S

Africa.

less than
U. S. produced iron. Obviously,

One

the

—the

curred in Europe, but some

sold

Economic

S. firms with dump¬

ex¬

plore a new market with real
possibilities for profitable trade

limited but bitter experi¬
of U.

fifth to one-tenth of comparable

remain.

ones

State

the

promis¬
ing. International
Cooperation
Administration team of
small

CT. S. firms from offering credits
for

.l»i»

25th.' annual... meeting
Sheraton Dallas.
-

Hotel Biltmore.

because

talk

the

-V

sociation 34th annual dinner in

which

and

order

one-shot
they
may

out to

turn

increased trade with Russia are

get

"She just has one slight Drawback

which

sale

away, the U. S. State Depart¬
ment as the architect of the new

Some

Competition

How many

th*

;

•

eventually

When

©ESSAS

ex¬

supplies.

Americana Hotel,

;

con¬

Convention

April 6-7-8, 1960 (Dallas, Tex.) rt >
; Texas
Group
of ; Investment
Bankers Association of America

aging U. S. businessmen to

S., but the Reds in the

last discussion offered

dollars

currency

Finance

debt.

settlement
the

;

have

doesn't

This debt,
at $2.6

Fla.), •
'
Y.
Investment Bankers Association

learn our tech¬

and

Can Can Room, Hotel Dyckman.

Annual

porters because his country just

hurdle, and

biggest

manufacturer's

(Minneapolis,

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

sizable growth in purchases
by the Russians in this country
would have to be financed by
U.; S.

1959

1 Club dinner and meeting at the

any

slow and painful

Germantown

Minn.)

leaders, ' Premier:
Khrushchev made it clear that

trade between U. S. and Russia.

Annual

7th

Twin City Investment Women's

S.'

top

Dance

Cricket Club.Nov;, 18,

During his recent talks with
President Eisenhower and bther

diplomats will get to¬
gether
this
month
to
begin
negotiating
solutions
to
the
many
and
serious legal and
monetary
problems
blocking

Philadelphia

r Dinner

The

"This will be

Investment Traders Association

their

veloped and to

(Philadelphia, Pa.)

14, 1959

obviously to fill gaps while
own
production
is de¬

are

with

necessi¬

the

Nov.

their
interests in buying U. S. goods

luxuries of life.

even

down

self-sufficiency,

for

the glowing hints that they will

(Boca Raton, Fla.)

the Boca Raton Club.-.

to
their essentials leaves little in
the kettle. At present, the Reds
have few items to sell to this
country in any volume. Their
productive capacity .is not used
for many salable items. This, of
course," could change in lime.
On the other hand, the entire
Russian economic program calls

1-5, 1959

National Security Traders Associatidn Annual
Convention ol

possibilities
trade

S.-Russian

let's-trade-instead-of-

movement

Nov.

•

the

Boiling

holds many and serious pitfalls
for U.
business firms.
The

ex¬

aiming some carefullytimed attacks at some of our
own
vital
industries, he

change

and

rosy

and in

country,

this

from

The

wide-open

SPECIALISTS

NEW YORK 5.

N. Y.

TELETYPE NY 1-971

LEANER 8 CO.
Investment

10 Post Office
Telephone
Ht'bbard

Securities

Square, Boston 9, Mass,

2-1990

Teletype
BS

Full text of Commercial and Financial Chronicle : November 5, 1959, Vol. 190, No. 5896

FRASER