Full text of Commercial and Financial Chronicle : November 7, 1963, Vol. 198, No. 6314

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and FINANCIAL

Reg. U.S. Pat. Off.
THE

Volume

Number

198

LEADING

INFORMATIVE

MOST

AND

New York

6314

PUBLICATION

FINANCIAL FIELD

THE

IN

.

.

ESTABLISHED

.

1839

Price

7, N. Y., Thursday, November 7, 1963

Factors

New Frontiersmen

are apparently beginning to worry
{seriously .about prices. Costs have, of course, been rising

good while past, and the major factors in that in¬

a

have

troubled

not

troubled

them

^Vashington,

minds/in

enough

to

give

rise

to

moves

the Administration

found

We

elsewhere.

"oligopoly" in

petition"

seems

have,

would

it

; so

are

whose stocks

ing the cash

if no violation of the antitrust laws. "Ad¬
prices" is the current diagnosis, and some¬
is a sin of the larger corporations.^ So far the

disclose.
nous

appearance.'

V

^

way

have

:

conditions

Some plain everyday facts are

who coined them.

much

likely to provide, a basis for understanding the
events which seem to be causing uneasiness in Wash¬

ington. First, the matter of costs. Despite all the efforts
management, costs of providing the goods that are

being demanded by the forward-looking politicians are

continually rising. If

we may

accept the figures of the

so-called implicit de¬
applied to producers' durable equipment—

Department of Commerce— the
flator factor

the cost of

adding

one

unit of pro-

with

vesserice,
areas

tors:

minimum

a

they

of

The field is

excellent

due

bother

Rising

(1)

Although there are more

Municipal

from

Present

-

"

•

STATE

Mis

MUNICIPAL

savings

finan¬

continued flow of mortgage

and

media-—'life"insurance

loan

associations,

mutual

pension funds.
—have been eagerly bidding for mortgages. "Inci¬
dentally, the action of the Federal Reserve Board
to permit member banks to raise to 4% the interest
paid on short-term savings deposits and savings
savings banks, commercial banks and

than

certificates
the

less

of

corresponding

paid

by

mutual
the

maintain

to

to these

than
move

Commissioner

ing

to

maturity and

year's

one

by the New

the

free

savings

banks

York Bank¬

rate

of

should

interest
do

much

mortgages

of

attractiveness

(Continued

institutions," Mr

on page

4)

State,

Municipal

Lester, Ryons & Co.
623

Hope Street,

So.

Los Angeles

17,

Municipal

Members
Members
Members

Exchange
American Stock Exchange
Pacific Coast Exchange
York

New

Stock

A

-

Glen-

770-2661

San

EXCHANGE

Diego,

FIRST NATIONAL CITY BANK

135 So. LaSalle Street

Bond

Santa

Ana,

Santa

Bond Division

CHASE

Whittier

,

New

York

Correspondent

—

THE

Monica,

Inquiries Invited on Southern
California Securities

Dept. Teletype:.571-0830

TWX: 212-571-1414

w

Municipal

dale, Hollywood, Long Beach, Oceanside,

MEMBERS

MIDWEST STOCK

Notes
■-

Offices in Corona del Mar, Encino,

Pasadena, Pomona, Redlands, Riverside,

DEPARTMENT

Agency
Bonds and

California

CHEMICAL BANK NEW YORK TRUST COMPANY




a

Housing

Securities

•

already

and prospective conditions in the

companies,

A-

Dealets

•

Corporate &

York 8, N. Y.

Mr. Colean also

funds invested in new

funds., All types of savings

Accord¬
ing
to
the Mortgage Bankers
Association of
America, the industry services more than half of
all FHA and VA-backed loans and about one-fifth;

Chemical

770-2541

on

flowing abroad, hence augment the

cial markets indicate

II, the gain is about eight-fold.

MULLANEY, WELLS & COMPANY
Distributors

P. O. Box 710, New

government; borrowing;

of

and Public

Underwriters

phones:

the following fac¬

ample supply of savings for domestic investment.

Savings Banks' Convention Featured

Securities

BO ISO

rate

is

loans

mortgage

of

absence

proposed taxes

Housing,

State and

•

on

foreign securities issues would tend to keep dollars

30 service loan
portfolios of more than $200 million. However,
between 1950 and 1960, the dollar volume of new
loans originated by the industry doubled. Since

mortgage debt outstanding.

rates

funds from long-term investments.

In

risk.

or

to the

U. S. Government,
Public

:

■:

.

interest

in

(4) sufficient increase in short-term rates to attract

become scarce,

1,000 mortgage firms, fewer than

World War

MANHATTAN

Pershing & Co.

BANK

Chicago 3, III. FRanklin 2-1166
91st Year

California's Diversified
Net Active Markets
To

(Ms Brothers 8 G>.
Established 1872

Maintained

Human Resources

Dealers, Banks and Brokers

CANADIAN

Canadian Securities
Block

,

HOME
..

CONTRACTOR

BONDS & STOCKS

Inquiries Invited

Commission Orders Executed Qn

Members New York Stock Exchange

All

Canadian Exchanges

> THIRTY BROAD STREET

CANADIAN
.

NEW YORK 4, NEW
WHitehall

'

DEPARTMENT

Teletype 212-571-1213

Dominion Securities

YORK

3-7500

<MR!CT

WIRES TO MONTREAL

AND TORONTO

Corporation

Goodbody & Co,
MEMBERS NEW YORK STOCK
2 BROADWAY
NEW YORK

40

EXCHANGE

1 NORTH LA SALLE ST.

CHICAGO-

-

for

rowing volume; (3) decline in institutional savings;

funds who would

funnel money for mortgages -from
areas of "want."
another of the many going through a

consolidation phase.

and

purposes

(2) substantial increase in private long-term bor¬

of "plenty" to

of total

(Continued on page 18)

New York

rise

foreseen

important segment of the financial

^nation

more

of

No

understood
industry.
By providing a national market in residential and
commercial housing loans, they permit institutional
^investors to buy mortgages in any part? of the

,

these strhnge terms with - which
are being described
to the savants

leave

possible rise in the cost

a

construction

for

ing delivery.

Mortgage banking companies are a little
but

appreciable

carrying mortgages in the process of sale or await-C

industry; ex¬

notes

and

shares;

company

monetary

1963
any

trend. Miles L. Colean, out¬

companies is

borrowing

noted that

omi¬

an

of

how to go about

make funds available should mortgage money

next the future must

"Investigations" mow under

Suppose we
current

come

of earnings and

relations with institutional providers of

point of causing the offenders to wince and

relent and refrain. What is to

sources

mortgage

valuing

remedy has been largely an effort to arouse public opin¬
ion to the

major

this growth

on

mortgage

coming months; credits mergers and establishment of

plains

some,

have

in mortgage rates in

Analysis anticipates no rise

mortgage subsidiaries for strengthening the

even

of
to

Bank's discount rate hike in July on builders and

of, and respect accorded

companies and mortgages by investors, and

the

view

expected

only uncomforable impact of the Federal Reserve,

Market, reach¬

pertinent financial facts of 13 representative

tabulates

firms.

an

effect

the

to
not

are

standing mortgage authority, said recently that the

dividend stage. Author Finn documents the

he

ministered

how that

available only in the OTC

are

to, mortgage

industry, and hence "imperfect com¬

our

of age full of

come

publicly-owned firms, most of

for the rising acceptance

reasons

to be

seem,

health" with many

"ruddy

advisors in and about

strongly to suggest,

banking companies have

Mortgage

have not
action in the
or

premises. Despite these well-known increases in costs,
the cause and the; remedy for rising prices, so word
from the discussions of economic

Contrary

By Richard P. Finn, Marshfield, Mass.

have

long been familiar, to all who take the
trouble ^to inform .themselves, but these circumstances

crease

Copy

a

Companies Are

EDITORIAL

for

Cents

50

V

Teletype 571-0880
Area Code 212
■

Bank

of

,

WHitehall 4-8161

America

N.T.&S.A.

Exchange Place, New York 5, N. Y.
MUNICIPAL
SAN

BOND

FRANCISCO

•

DEPARTMENT
LOS

ANGELES

The Commercial and Financial Chronicle
2

•'/' ''

■

'

'

••

i* '

' ;*.•

without

trading would be extremely

through coordina-

aim,

tion,

give

to

broker
service

possible.

r

,

porated

CORPORATION
Established 1920

\

Teletype: 212-571

1231, 32, 33, 34

—

Chicago

•

Philadelphia

San Francisco

•

Wide

World

Los Angeles

•

Wire

Service

probably

Call

Furniture

Bassett Furniture Industries

Craddock-Terry Shoe
R. F. & P.

would

All Issues

of

TWX

39

846-0920

703

6-1333

con¬

The

there

retail

alone

cated

600

shares

been

among some 800 firms

Insurance

Stores

Drug

owns

of

operation

in

215

the
are

seven

lo¬
ma¬

operates

plant,

ing
tion

ice

an

film process¬

a

ranks

in

a

Blue

Chip

A

Continuing Interest in

com¬

approximate 28% interest in Sav-

eighth

On

Neither of these

Inc.

Drugs,

latter

underwrit¬

companies publish in¬

two

financial

statements

and their results are hot consoli¬

to

its

L. E. Carpenter

& Co., Inc.

is

primarily

energetic

efforts

President,. W. Clement Stone.
the

leading

authorities

sales, motivation field.

Richardson Co.
Rudd

"Success
tal

Melikian, Inc.

been

Established

1914

Philadelphia 3, Pa.

That

sales

His

"The

Never

111 Broadway
New York 6, N. Y.
CO 7-1200

has

.

will

"we

.

.

most

a

1963

of the suit.

state¬

.

how

chases,

warehouses,

and

year

better"

der

.

.

Thrifty's

An

dis¬
.

trade

.

.

These

.

merchandise

is /

ON

of

stockholders.

until

recently
with

forth

NEWSSTANDS

that

if

pute

and the
as

But

Mr.

most

part

wasn't

it

Stone

came

tween 20 and

units

the

company

the

loses

Internal

dis¬

a

Revenue

on

of

close

own

pocket,

because

he

not

did

could be classed

plan

same

closed

to

It is
be¬

open

each

stores

new

time, smaller

and

balance, there

the $5

million tax bite out of his

in

other exist¬

ing facilities are modernized. Net

Service, he personally would pay

IN

are

of

self-service type

25

At the

year.

with

variety

offered

new ones

management's

dynamic state¬

a

19

was an

Thrifty Drug Stores at the
of

"the

(8/31/63)

last

fiscal

the

over

year

comparable

year

should

has been able to secure, quite de¬

The

suffer.

growth

tinued

pattern

has

in 1963. For the six

con¬

month

period ended Jupe 30, sales have
We

are

pleased to

announce

increased

17%

10%—-with

that the "Chronicle" is

now

Plans

also

available

stands

in

the

throughout

on

news¬

half

second

enter

the

cities

country.

accident

COMMERCIAL

Combined

and

FINANCIAL

CHRONICLE
25

Park

United

Rico,

income

better

forward
company

and

to.

to

health

England this fall. And
long range

selling on

licensed
The

the

for

eventually,
for

look

to

the
of

net

usually

call
.

market

major

and

the

,

a

sell

States,

Guam,

plans call

world-wide basis.

Insurance

to

is

presently

throughout

the

Canada,

Puerto

Virgin

Islands,

The

earlier date.

sirable

leases

The

company

sgaassggssassg




22525

as

a

increased

just

was

exercise

the

of

For Banks, Brokers and Dealers

of

outstanding. Between man¬

plan,

retirement

and

AMPOULES

is closely held.

Assuming that net
remain at 2.54%

$210.0 million.

margins

profit
of

in¬

the

out¬

shares

of

number

well be

earnings could

standing,
in the

considering

and

sales

creased

at

estimated

being

of $2.40. If these earn¬

area

ings are achieved, it would be pos¬
sible

to
on

the

Thrifty

INC.

traded

is

Inc.

Co.,

Stores

Drug

1

stock.

common

stock

common

M. S. WIEN & CO

increase the divi¬

again

dend

Inc.

1964 is

for fiscal

volume

tentatively

the

owns

building, furniture, and

fixtures./ Thus,

readily

can

why it takes less than

seen

for

it

a

new

store to become

year

a
a

be

prof¬

itable operation.

of

record

dividends.

and

sales,
As

of

an

en¬

earnings,
Aug.

31,

1954, there were 108 stores in op¬
eration that

generated a sales vol¬

ume

of $63.1

was

$757,000; per

were

million.

Net income

share earnings

$0.35; and the dividend was

circumstances to be construed

solicitation of an offer to

buy,

any

as

an

offer

to

sell,

or

security referred to herein.)

2,

Y.

C.

J.

C.

HEnderson

BArclay

N.

J.

7-4300
5-9400

201

432-6627

201

432-6628

New Schedule of
NYSE Listing Fees
York

New

,The

announced

has
new

take

effect

Stock
the

schedule

Exchange

adoption of

of

listing

Jan.

1,

fees

1964,

to

a

to
re¬

place the present schedule which
adopted

was

in

present form

substantially

about 25

its
ago.

years

Quality,
Reliability,

The changes and simplifications
in
a

the

schedule

new

number of

listed
The

in

overall
the

to

in

corporation

simple
and

name

where

state

PRINTING
130

Cedar

CO., INC.

St., New York 6, N. Y.

Telephone: WOrth 4-3033
1889

—

Our

74th

Year

—

1963

in¬

of

re-incorporation

or

base

occur,

APPEAL
elim¬

fees

changes: in

FF

reve¬

will

corporate
reduce

,

Speed...

result

in

for

charges

value,

simple

not

increase

schedule

fee

changes
par

years.

Exchange.

new

inate

the

over

schedule will

new

nue

incorporate

suggestions made by

companies

any

fees

the. actual

on

number of shares involved rather
than

using

eliminate
for

blocks-of

shares,

100,000

and

10,000
reduce

and

billing

multiple

annual

or

dates

fees.

order

In

offset

to

the

elimina¬

tions and reduction of fees result¬

from

ing

the

schedule,

new

the

Having*

initial listing fee in the 500..000 to

cent per

will

annual

fee

the

that

mean

for

increase

mum

cent to

a

will

from $500 to $1,000.

increased

This

of

in¬

share and the mini¬

continuing

mum

be

one-half

from

crease

Will

bracket

share

1,000,000

any

maxi¬

IV.

schedule

at

lion

in

standing
has

an

INDUSTRIAL STOCK INDEX

new

to the

25-Year

over

eight bil¬

present time.
for

bracket

above
been

initial

one-eighth of

a

FOLDER

shares

out¬

3,00 million
created providing
at

the

ON

REQUEST

Thus a

National Quotation

rate

cent per share.

of

Bureau

Incorporated

the

fee

Performance of

35 Industrial Stocks

from

1939 to

the

fee

new

the

number of shares
less than 1%

the

OVER-THE-COUNTER

$500.

fees

gives recognition

outstanding
billion

of

feature

in

growth

for

annual

continuing

Another

Q. B.

company

in initial fees would be $2,500 and
for

Thrifty Drug Stores has
viable

City

N.

Teletypes:

one

where in most cases, the landlord

Exchange Place

Jersey

the

in

Market

Over-the-Counter

level
no

branch offices

our

approximately 45% of the shares

its" locations

for

Place, New York 7, N. Y.
(This is under

to

share.

it-sharing

increase

believe that minority stockholders

MAJOR CITIES

Direct wires

mil¬
the

agement and the company's prof¬

The

junior department stores.

publicly stated in effect

He

ment.

promote

on

also

Most of the units

of the super,

the

expressions

confidence

and

rate

result

a

stock

names.

wide

extremely

are

afford to pay"

a

pur¬

packages some items for sale un¬

Thrifty's stores.

faith

as

which

"give the service the people want
can

acts

Bros.,

Borun

at

price they

sub¬

A wholly-owned

organization

advantages into advantages"

a

determinatioh

final

no

service

turn

to

must

divesture

that

"1962

.

even

sidiary,

Sav-On's

of

full

successful

be

know

.

beed

has

1,700

His
are

of

As of this writing, there

have

some

stockholders

been

and

Success

Fails"

1962

in violation of the Clay¬

and

Act

that

in

purchase

was

be made.

confidence and progress

LO 8-0900

books

1958

its

stock

The

advised

Department

ton

representatives.
to

the

in

Justice

Thrifty Drug Stores

one

\

with those of Thrifty.:

dated

Positive Men¬

a

inspiration to

an

ments

The Alison Building
Rittenhouse Square

Through

Attitude"-; and

System

BOENNING & CO.

of

Mr. Stone is considered to be
of

Keyes Fibre Co.

the

Birmingham, Ala.
Mobile, Ala.

Company (trading stamps) and an

dependent

due

that

212 571-1425

HAnover 2-0700 *

Now Orleans, La.-

Stamp

insurance

this

Exchange

generated a sales volume of $189.0

produc¬

cream

plant, " and

ing individual accident and health
and

-

31, 1963, there were 215 stores

Sales

in

California

in

Com¬

phenomal.

>

com¬

California, with the

investment

growth of this unique
has

the

commissary.
"miracle Among other interests are a 10 %

a

pany

an

believe

but

now

in

company

stock

on '

Thrifty

that

jority in Southern California. In
addition to its retail stores, the

1958)

.

All

units

(Jan.

.

;

As

stores on the Pacific

drug

Coast.

100

in

800%

of

Stock

American

options, there are presently a lit¬
tle .over
2.2
million shares
of

operates the largest chain of

six

are

Insurance

City i

bined

Market.

in the future as well.

Thrifty

1935,
and

million

compounding, capital/'

Private wire to Shields & Co.,
New York

to

outstanding'.

to

%

Cali/.

been

We

Incorporated

until capi¬

10

ago,

Members

for all stock
splits and dividends). As of Aug.
(adjusted

$0,165

to $1.00 per

can

$20,500 (Oct. 1963). This is

dividends

is

will continue to expand and

pany

forward

grown

increase

an

LYNCHBURG, VIRGINIA
LD

Victor

have

worth

STRADER and COMPANY, Inc.

remark¬
traded

a

impor¬
participant in the growth of

California.

stockholders

years

A)

its

dividend

shows

record

tant

Combined

(r*age

Frank, Meyer & Fox,

Drug Stores has

investment

of

o\

i • p

/-.

i

~

PftHQP Z Hfl

QtCINPR

OltlNtK, York. Stock Exchange
IfUUOt « UU.
Members New
19 Rector St., New York 6, N. Y.

modest

Thrifty Drug Stores Co., Inc.
The

;■

prosper

$2,250

a

Angeles,

ROTHENBER/r'

Los A ngeles,

20

shares

just, five

such
It

stock.

Partner. Stern,

66%

look

Stern, Frank, Meyer & Fox, Los

times

weighing

Over-the-Counter

the

Inc.—

Partner,

lion; earnings were $2.26; and

50

At

shares

growth

Co.,

Stores

Rothenberg,

J.

Emil'

million; net income was $4.8

33 w,

present

A

American

able

'

Bought—Sold—Quoted

(Page 2)

Considering'

and

record

■

.

Louisiana Securities

Griggs Co.,

F.

R.

Drug

Thrifty

share,

per

potential, this is a

price to pay for
in

earnings

selling for 23

earnings.

past

future

20

reaches

million

is

adjusted
its

of: $35

price

issue

■

Goldman, Secur¬

N.

Analyst,

ity

1963. At the present

EMIL J.

25

shares.

First

us

this

40

talization

Virginia Securities

Combined Insurance Co. of Amer¬

43

stock dividends

tinued

Markets

r

Waterbury, Conn.
«adjusted

Alabama &

"

Their Selections

Republic and parts of

year

offered

25 (10-1 split)

Furthermore

Continuous

the

33 V:i

/ 1958

Thursday, November 7, 1963

Participants and

Forum

50%

1957.

St., New York 4

Telephone: 363-2000

Boston

record
in each

follows:

as

.1956

Exchange

Stock

American

60 Broad

a

its

to

its

been

has

1955_^_

Member

Associate

has paid

importance

since 1953

year

for

incorr

Stock Dividends—paid

of

Hanseatic

\

.

This Week's

• •• ;

approximate $1.50 per share

will

its shareholders

to

more

stockholders
NEW YORK

■',

of experts

group

estimate

I

beginning with 1950.

year

of

But

;

-

Australia.

of America

was

.

and

1949

in

in each

HANSEATIC"

Insurance

dividend

cash

Over-the-Counter
"Call

119965532034

Combined

Remember, when it's

different

Dominican

Fi Griggs

Combined insurance Company

best

the

dealer

or

' /'

:

for favoring a particular security.

Companyi Water bury, Connecticut

the bank,

you,

_.

ica-—David

Security Analyst, The R.

-

our

.

advisory field from all sections of the country

N. GOLDMAN

DAVID

iWHanseatic it is

difficult.

>

.

participate and give their reasons

Over-the-Counter

it,

'

..

in which, each week, a

in the investment and

For

Corporation.

Hanseatic

* *'"•

'

A continuous forum

New York

by-word of

I Like Best...

The Security

Coordination...
The

.

(1798)

46

Front

CHICAGO

Street, New
-

York 4, N. Y.

SAN FRANCISCO

Number 6314

198

Volume

('17M)

Financial Chronicle

The Commercial and

.

.

.

3

CONTENTS

Areas

Four Investment

attractive investment

Four

forces said to be ushering

an

V'"

Ten

being

of

opened

I

Analysts,

regional

first

our

with

with

better

a

the

to

trap.

mouse

you

promote

that

tion

we

have
ages

that

era

would
in

tory

as

peeves

the

of

most

Fabulous

50's

the

as

60's

,the

¥

.

0.t

„

Sidney

.

B. Lurie

that

different

philosophy now is little

the

and twenty pounds

all

will

of

any

In

my

remember as

idea.

stantly
thing

that

is

proof

Mrs.

.

friend or

us

for

herent

of

strain.

We may be

of an

threshold

the

year

that

A very

half

only

would

be

trying

to

what

key

Market

get so im¬

times,

all

I

some

would

like

to

do

that

a

to

Our

^

of the lessons I have

learned

Security I Like Best

Street

State

about

a

Salesman's

Security

has

a

become

is

market

for

double"

success

his

The

customer

great
when

WILLIAM

•,

:

25

Park

Place, New

CLAUDE D.

DANA COMPANY,

B.

York 7, N. Y.

as

the

next man.

•

on

GEORGE

ST., NEW YORK 4, N. Y.

TELETYPE 212-5714)785

Newark




Schenectady

Glens Falls
Worcester

MORRISSEY, Editor

But

page

1963

and advertising issue) and every
issue — market quotation records,

Thursday (general news
(complete
statistical

Other

22

Copyright 1963 by William

SUBSCRIPTION
MONDAY
In

In

B. Dana Company

Reproduction in whole or in partpermission is strictly prohibited.
postage paid at New York, N. Y.

rights reserved.

without written

,

United

AND

$80.00

countries

United

Union

EDITION

States, U.

$20.00

per

year;

extra).
for

year)

and members of Pan American
in Dominion of Canada $21.50 per year;

"

of

V. FRANKEL & CO.
.INCORPORATED

year.

PUBLICATIONS
—

Monthly,

$45.00 per year

(Foreign

'

account

remittances

ONLY (52 issues per

S. Possessions

Quotation Record

and

Postage

issues per year)
of Pan American
$83.00 per year;

$87.00 per year.

other countries $23.50 per

Bank

RATES

THURSDAY EDITIONS (104

U. S. Possessions and members
per7 year;
in Dominion of Canada

States,

39

BROADWAY, NEW YORK 6
WHitehall 3-6633

fluctuations in
subscriptions and

the

foreign

made in New York funds.

Chicago

J.

corporation news, bank clearings, state and city news, etc.).
Office: 135 South La Salle St., Chicago 3, HI. (Phone STate 2-0613).

Note-^-On

TELEPHONE HAnover 24300

Nashville

November 7,

Monday

OTHER

Members New York Stock Exchange

United

Treasurer

SEIBERT,

DANA

WILLIAM

revise

to

And I am just

Continued

PUBLISHER
REctor 2-9570 to 9576

SEIBERT, President

portfolios with the view to estab¬
tax losses.

Dealers

FINANCIAL CHRONICLE
Reg. V, S. Patent Office

COMMERCIAL and

?Published Twice Weekly

Thursday,

guilty

available this week.
For Banks, Brokers and

Street is busy

Wall

Founded 1868

Boston

40

column was not

is

with

the

time of year

the

6

the

.

in

16

__

You

and

*Mr. May's

more

PREFERRED STOCKS

Albany

(The)

Market..

Bond

carried—-that the

Spencer Trask & Co.
25 BROAD

2
20

Corner

and Industry

of Trade

State

Tax-Exempt

Washington

cutting- down

stock

J—36

(The)

profit

THURSDAY

■■

22

the

other

■

25

31

Offerings

Security

Prospective

Union

,'

—

in Registration- —

Now

Second class

specialized in

______1

Securities

,

frighten

All

have

HOV)R

18

*

Governments

on

Utility

Securities

.

For many years we

Washington

16

29

Bankers——

2_

——

Reporter

Public

floating around

ago

by

"daily
This

as

—

—

—

Banks and

Observations

often

Remember

was

two

everyone

share

St. Louis

20

Notes

NSTA

unanimous

which

and

industry

Rather, lishing
is

Los Angeles

San Francisco

Philadelphia

9

to

30

Activity.—

(The)—

Funds

News About

concentration. If this be true, isn't

I am not

,

Cleveland

are

we

-

of

wary

cliches

or

him, he telling

anything.

and You

.

.

.

Mutual

Every

sell

Current Business

Indications of

busi¬

basic

it absurd to try and come up

said that

cost

it

milionaire.

a

apply

unwashed?

man once

8

Chicago

14

.

we

number of lines

sell his experience for

in Great Britain"

Ahead of the News

From Washington

perhaps the

our

Many

Street

on

.

wise

be

efficient

growing

40

Recommendations—_

Every investment analyst knows

a

if he could

23

Investment Field

Einzig: "The Swiss Franc Loan

of foreign competition?

declining defense

world trade and

expenditures.

1

—

Stocks.

Investment

Dealer-Broker

margin squeeze—about the threat

entirely new

features

which

phase

are

is

customers?

Wall

so

Placs, I. Y.

example, isn't it absurd for

nonsense

world-wide

times

to

tell the public—as we

to

our

...

and resiliency

strength
and

stress

itself.

feed

in

well,

——(Editorial)

Jt—

Insurance

and

Coming Events in the

ourselves.

to

publicity.

own

veloping

in¬

Communist world's

to

40 Exchange

Teletype 212 571-0610

don't

then

opinion, and then spend time de-

moment if you

a

that

God

do—to

From
the very fact that our capitalistic
society has demonstrated it's in¬
ability

HA 2-9000

mechandisers of an

this

And

For

con¬

are

we

implications and
expectations which could develop
the

See

We

Bank

like the movie actor who believes
his

will, of the great
from

Singer, Bean

in¬

criticize

we

sense

critiques

mortals.

to

treated to some¬
and different—to excit¬

think,

Just

McFarland 23

sMackie, Inc.

forget we are '
mortals—and that we are talking

being

new

Leadership"---——.Kenneth

Murphy 15

Regular Features

at.

have

we

I suspect that we

play

changes — and I don't mean
v Kennedys'
latest
hair-do.

ing

Equipment
Eggers 14

A.

Austin S.

'

"Gutless

Safety

for Savings Banking

Climate

Current

The

American

Banks'

Melvin

Growth:.

pressed with our own attempts to

neighbor—this is an economy and
stock
market of great
VIGAH.
Best

United Nuclear

12

put it bluntly, I suspect we in

ness.

might-be made by Bos¬

ton's most distinguished

common

world's worst

the biggest

word, to paraphrase a com¬

a

ment that

the

the financial field

have ever known.

us

when

express—and

same

To

opinion, we are
living in a period of great ex¬
pectations^—an era where the best
is yet to come—an era which we
In

think

I

gall

we

have

when I was ten

from what it was
years younger

Curtis Mathes

Balance of
-.-William S. Renchard 13

Unequal Treatment Stifles Savings

daily through the opinions

almost

basic-

lighter.

door
Now,

corporate management—as we do

far

,

my

word,

a

colossal

have

thus

been

In

as"

YORK

4-6551

-Edward Jerome Dies 11

Payments

Analysts?

the

WHitehall

10

The Magic Key'

.

.

Changing Banking Structure and

As

Analyzes

Dept.

NEW

my

leveled

be

STREET,

Direct Wires

were

—frenzied

.

Future of Savings Banks in New York Stale
Charles W. Carson

the investment

in

us

Who

Government

Progress.

To

dustry.

50's.

fabulous

Leslie E. Fourton
Confidence in

audience encour¬

can

WALL

Expectations

off with some
constructive criti¬

—

which

cisms

his¬

99

Gresham's Law?

to sound

me

pet

go

down

7

Cobleigh

U.

Roger W. Babson 10

it

captive

a

living in

were

Ira

The Prospects for Oils Exceed

aggressively. In
connection, the fact that I

this

>

Turkey!

Obsolete Securities

Convertible

of

Resurgence

Again Confronted With

Are We

properly

have to package it

and

that

Telephone:

when the world

path

a

•/

selling

;

Preferreds

'
beat

of

3

Sidnev B. Lurie

v

Praiseworthy

.

would

observa¬

the

—

Preference

for

reasons

The time is over

con¬

vention

ulcers.

the
Security

of

Society

York

New

the

when I had
President of

ago,

years

honor

the

of

—some

1

—

Investment Areas Which Warrant

Four

the economy and the stock
market. The author's papsr fully reflects his 30 years' well known
experience on the subject. Mr. Lurie is a form r President of the
New York Society of Security Analysts and was one of the first to
pioneer the profession at a time when analysts were called statisticians and were barely tolerated in the overhead. He has lost none
of his perspective as evidenced in his observations wherein he
chastises his colleagues for not applying to themselves some of the
critical standards they apply to the corporations they judge, and
for neglecting the public in favor of institutional sales.
Mr. Lurie
stresses selection over market timing, and sees no sign of a major
top notwithstanding the presence of some debiting factors. ;
in

an

Market

think

to

Companies Are Vital Housing
Factors.—
2
Richard P. Finn

Mortgage Banking

described within the context

areas are

optimistic assessment of the broad
another era of great expzctations—for

of

Good Time

PAGE

;•

New York City

& Co.,

company

and

Articles and News

Research. Josephthal

Lurie,* Partner, In Charge of

By Sidney B.

••

B. S.

Which Warrant Preference

;

1963

Thursday, November 7,

/

the rate of exchange,
advertisements must be

Teletype 212-571-0500
212-571-0501

The Commercial and Financial Chronicle

gages

the

itself,

being
and acquisi¬

national concerns is

large,

helped

by

mergers-

in the Over-the-

shares are traded

other

of

of financial
Investments,

types

Wallace

concerns.

the

has- caught

market,

Counter
eyes

whose

of

most

-

^

In mortgage
trend toward

out.

points

Colean

firms,

mortgage

1

to wider

banking

mortgage

California

large

Two

vistas.

geographical

The

ing; firms are cases in point.
Colwell Company, within the

last

has made its operations

two years,

statewide by

Mortgage Co.

acquiring Peninsula
and General Mort¬

Mortgage solidi¬

gage Co. Palomar

position in the important
Greater San
Francisco area .by
its

fied

Inc., diversified Dallas

In
Florida, another prime area for
mortgage investment, both Stock¬
ton, Whatley, Davin & Co. and
Service Co.

Co. and Mortgage

Financial

bought Lomas & Nettleton Com¬

creased their coverage of

acquisitions.

through
sectional
have

basis,

the state

Even

on

a

firms

mortgage

strengthened themselves by

consolidating.

Washington,

Inc.,
up

in 1962

wide

C.,

set

was

to establish a nation¬

mortgage

holding

banking

started

and

company,

D.

Companies,

acquir¬

by

ing three mortgage firms operat¬

ing in the Mid-Atlantic States and
recently acquired

brokerage concern.

gage

tively, the

firms had

doubled their

four

prior

gave

the

creased

';" The

compapy

bank

than

and nearly

income

net

years.

Collec¬

more

revenues

their

tripled

—a

national mort¬

a

in

the

wedding

^greatly

in¬

borrbwing capacity

increased

of

businesses

operations

of

related

and

including 1 real

estate

-Colonial

98%.

to

i''.

■

-<i

'

;•




owned

and

partly

borrowed

from

cash

The

mortgage

interest

and makes

its.

on

profit

a

Even

mercial

the interest

construction

the

mortgage with

a

the

com¬

building
year

a

completion,

or

current

commitments

mortgage

are

bankers
usually a rough indicator of com¬
operate
insurance
agencies
in mercial
mortgage closings for the
conjunction with their businesses,
(5)

$10,000

a

apartment,

require

may

for

more

rate.

loan

basis,

industrial

or

projects

spread between the bank rate and

mortgages.

current

a,

Since

pressive.

capital

own

on

on

growth of mortgage firms is im¬

company

year

On

in

million

$10

f

-

Crawford

credits,

such

mortgage

Many

income, profits on real estate de-

re¬

home

mortgage

loan

Loan

Savings

Corp.

and

holding companies and com¬

mercial

banks

subsidiary

mortgage

increasingly

Financial

Midwestern

minded.

Corp., Boulder, Colorado, controls
and

Kassler

both

Inglis

Imperial

controls

Company,

an

Company

Co.

Mortgage

Mortgage

California

participant. Recently, Union Bank
of Los

Angeles took

over

Origination fees plus

(2)

serv¬

ices performed

also

servicing

For

more

fornia

than $50 million in

mortgage loans

Cali¬

by acquir¬

mortgage
six

loan-correspondent

Southern
Mutual

California
Life

in

counties

The

mortgage

Insurance

Co.

to; sell

able

price
the

than

trump

Or

structed.

a

loan

the

it

at

rising

a

a

higher

committed

before

mortgaged property
a

loan

servicing,

wa§

con¬

be

sold

may

in which

higher price is received to

case
com¬

pensate for loss of future income
in

-.v.-'

servicing.

housed"
use.

,

mortgages

Here

the

on

"ware¬

for

future
firm

mortgage

from

doubly

—

interest

on

its

capital, invested and profits
the

difference

between

the

''

•

.

['.■ ~i-

As

Ira

will be

relationships

•'

'

.

v.'..

Equity

not

have
for

long

developed

figuring

the
have

only

in

their

equities
of

about

service

of

1^2%

volume.

loan

if

Thus,

tutions,
for

$2 million, and $100 million of

would

$1.5

value

produce

they

stockholder's equity. Dividing

this

the

by

give

would

shares,

proximation
share.

rough

a

partly

income, is partly
future

is

important

clue
in

servicing

mortgage

be

sults

in

Advance

from

real

alone.

1962

vance's
from

net

of

mortgage

Open

end

be

may

loans,
for

used

for

pur¬

somewhat far removed from
such

estate,

boats,

as

vaca¬

tions, medical bills, college tuition
furniture.

or

$125,000

its

boosted
from

has

of

$628,000.

to

Mutual

fiscal-1958

in

while

in

million

$440

income

net

1963

the

same

over

rose

000

estimated

that

the

debt

cannot

an

mort¬

increase

in

of mort¬

attributed

be

building

home

and

on

activity.

The number of construction starts

has

for

1963.

fiscal

its

seen

servicing

Colonial Mortgage Service Co.

portfolio vault from,$190 million
the end of 1957 to $680
of

authority

outstanding volume

solely to

di¬

from $180,672 to $700,-®

span

Colwell

fiscal

research

National Association

Savings Banks

feels

gages,

the

gage
to

Klaman,

outstanding

portfolio;

servicing

Saul

rector of the

pushed

Mortgage Companies

million

$226

Dr.

Meanwhile, Ad¬

income

Associated

as

peaches

$405 million at present, up 13%

over,

at

quality

question.

poses

1953

in fiscal

servicing

a

$1 billion.

over

has been increasingly open

example,

sprouted

has

million

$55.7

to

Company's

Mortgage

portfolio

servicing

portfolio

single current year.

any

handles

in the mortgage indus¬

The

paper

important than re¬

more

privately-owned

Company of Houston,

Bettes

cream

try.

earnings. Growth

In

well-

of the mort¬

titan

Of course, life is not all

and

a

a

established

-was

portfolio worth

This,

gives

it

because

to future

as

may

to

>

SBIC,

still

are

business.

of

industry,

Texas.

projection

a

income.

servicing

Business. In¬

Small

Companies

T. J. Bettes

.

of

often* obtainable

are

by the

gage

port¬
folio, which provides about half
of the average mortgage banker's
net

obtain from them higher

source

known

per

servicing

^mortgage

government-

fact, Business Funds, Inc.,

;/ ;■■■;

The

of the fast¬

one

conventional, because

bonds.

another

ap¬

worth

net

of

and

vestment

Outstanding

of

number

and

working

are

also actively bidding

than

from

for

$3.5

funds,

are

can

yields

a

million

of

com¬

savings

mortgages, both

backed

(in future mortgage serv¬

income):

total

adding"

volume,

mortgage
million

and

associations

Pension

book value

a

banks

est-growing of all financial insti¬

mort¬

a

M,any lead¬

companies,

closely with mortgage firms.

mortgage,

the

had

company

mercial

added allowance

of

re¬

when mort¬

even

scarce.

insurance

ing

their

at

is

gage money

common

appraised

are

banker

more

growing mortgage loan volume at

capitalizations,

book value with

the

correspondent has for

faivorable terms

of mort¬

companies
stocks

their

institutional

;

mortgage

area,

the

sources

analysts

value

mort¬

the list of institutional
the

his

in

has

shares. Since most

company

gage

Values

ago,1

with

of

that

is

■

rule of thumb

a

Institutional

investors tend to be quite durable.
The longer

V

■'

Cobleigh stated in these

columns

of

months

strong point

investors

ice

profits

L'.

Judging

gage

interest income

(3)

own

banker's

in

instance,

mortgage market the firm may be

With

companies

gage

borrowings.

bank

"•V"V:

may

the sale of mort¬

result from

gages.

total

its
1

six

Investors

Another

conditions, the volume of

mortgage banking firm

a

first

the

,

approximately three or four times

Profits

in

alone.

Relations

is

through bank credit lines. Under

in connection with

mortgage processing.

1963

•

average

Associated

Colwell closed $90.1 million

worth

firm's

checked

be

can

1963.,

of loans works.

mortgage

the

way

heartbeat

mort¬

without

of

One

serviced.
a

and

San Diego

State

active

tender loving care

provide a
earnings over the

of

in¬

key

April 30,

1962.

company, a

has

dicators which show how well its

are:

which

mortgages

industrial

operation

mortgage

banker's operation.

gage

becoming

also

are

companies

most valuable part

the

closed $171.7 million during fiscal

\

Like any

in¬

of

sources

Crawford Such income is usually considered

subsidiary,

90%, in the fiscal year

up

ended

fees, etc.

Fees obtained from servic¬

mortgages

building and
continuity of
commercial properties, operates
life
of
the

of
a

major

for mortgage

(1)

engaged in
ing
development

five

worth,

velopmeht, property management

of Income

Sources

The

Baton

Company,

La., which is

Rouge,

of New York.
-

commercial

and

Not Available This Week

the

from

partly

own

money

earns

one-eighth

one-quarter per cent on apart¬

to

ment

come

improvement loans.

publicly

from

By A. Wilfred May

and

come

banks.

Observations

,

loans, the
may lend the

eligible for a
mortgage. Funds ad¬

company's

a

; y

•

until the structure

completed

vanced

This
resi¬

usually one-half of 1% on

dential mortgages and

Subsidiaries

for

of

For this,

etc.

coverage,

-V'V' V'.

Mortgage

Toward

Trend

development, insurance and home

Growth

taxes,

'

company

funds

permanent

paying prop¬
arranging for insur¬

"servicing fee" is received.
is

is

payments,

monthly
erty

by

the loan for
collecting the

servicing portfolio turning from 9% to 11%.
amounts to nearly $400 million.

Company, Los Angeles. Cooley is

diversification

investor

the

mortgage

Mortgage's

ing the assets of Cooley Mortgage

broad

"services"

he

'

on

collateral

as

r

and

rate

balance, this means a service fee
of $50. An origination fee is also
following year. Some companies
property-modernization loans, ac¬
received, either from the borrow¬ placing insurance coverage when commit or close more than
$100
quired an 80% interest in Colonial
requested by borrowers.
er or the investor. Home improve¬
million worth of mortgages in a
Mortgage
Service
Co.j
Upper
ment loans are also lucrative for
(6) Other sources of income may single year. For instance, Advance
Darby, Pa. last fall for $5.8 mil¬
include home improvement loan
lion. Early this year, the interest mortgage firms. Colwell has over
Mortgage
closed $144.4 million

its

areas

Thursday, November 7, 1963

.

construction

In

builder

cializing in home and commercial

key facet of mortgage lending

-^-and

that,

(4)

After

investors.

bank loans.

for

borrower, com¬

a

institutional

to

million.

Home

Associated Mortgage

finds

—

pledged

mortgages

originates mort¬

He

the' mortgage documents
disburses the loan—for sale

and

New Haven, Conn, for $5.0
Atlas Credit Co., spe¬

pany,

in¬

have

Corp.,

and recently

Company

Mortgage

was

taking over Real Estate Mortgage

Atico

.

rate

bank

short-term

the

pletes

ance

real estate
tions. Many aggressive and wellinvesting firm, entered the field
financed members of the industry
in 1S61 by acquiring Institutional
find this a ready avenue

ntoney.

interest

and

mortgage

tempo¬

a

basis, he avoids investing his

own

Housing Market Factors
Continued from page

on

rary

Vital

Mortgage Firms:

except

that

is

card

banking

.

(1800)

4

June

1963.

30,

Associates,

by

50%

division

Serving

Mortgage

of

Atlas

over

Credit

Corporation

folio in

its servicing

excess

Jack L.

between fiscal

a

mortgage port¬
of $370 million
•

'

institutional

200

investors with

Milwaukee, Wis.,

which had ballooned

portfolio

A

million

I'

Wolgip, Chairman

■
of

the

Board

David H. Solms, President

1959
to

1963, posted a

and

$156

million

25% gain
1528 Walnut

in the last year

alone.
1 See

Street, Philadelphia

Upper Darby, Pa.
Dr.

~18,~1963,

—p.

Cnrnorations"

Cobleigh's
4,
in

column

of

on"Mortgage, Banking
the

Chronicle.

Willow Grove, Pa.

Wilmington, Del.

July
,

on /

million

1.0

from

in "1960

.

1.0

by

billion
1961

in

$15.4 billion in

and

this prob¬
that in the next

solve

may

lem. Experts say

paying annual stock dividends

are

in lieu

postwar

housing boom, it will be necessary

mortgages

for commercial banks to invest as

a

points out that concern over fore¬
closures "arises out of a compari¬

possible in mortgage credit. This

the. early

in

none

1962.

Non-Mortgage Mortgage

with

r e m a r

a

k

their

that

time

firms

gage

deposits

as

of these banks

many

services of mortr

will be using the

b 1 e period of

a

of

means

figures

of current delinquency

son

much

the

for

first time.
commercial

be little

can

question that

Elects Darnall:

being accepted by

are

rising tide of investors. This is

reflected by
between
and

the

very

FHA-insured

S.

U.

low spread

firms,

accorded

greater

too,

Thomas

mortgages

Government

Mortgage

bonds.

are

when: total

history

S.

elected

being

Darnall, Jr.

has

Vice-President

a

rector

of

Maxwell,

been
Di¬

and

Franklin

&

Co., Inc., 45 Wall St., New

both

York

City,

respectability

by
the
institutions using
large
employment, While some
banks will undoubtedly perform their services and investors hunt¬
How '{does
he
explain this? inflation and rising prices existed
the mortgage servicing functions ing for growth tied to the popu¬
Larger average loans .are a factor, in a period of a dearth of hous¬
lation explosion. The chances are
along
with »second
mortgages, ing." He points out that there themselves, the net result should
that
be
increased business for mort¬
nothing in the foreseeable
home improvement loans, sales of were 252,400 foreclosures in 1933
future will change this favorable
existing properties. But so too on a much smaller base. He also gage banking organizations.
trend. In the words of one ob¬
does
borrowing for other pur¬ states that the FHA is demanding
Borrowing

5

Maxwell, Franklin

of cash.

There

But Oliver Jones, Mortgage
Bankers
Association
economist

in

billion

$11.7

1960,

themselves

years.

increased by $10.4

family houses

(1801)

However, the commercial banks

there will

year,

estimated 100,000 mortgage

an

ally

four-

to

one-

The Commercial and Financial Chronicle

.

delinquencies compared to virtu¬

million again last year. Home
secured

.

be

to

990,000 in 1961, then rebounded to
loans

.

difference.; This

houses

two-family

and

one-

fell

Number 6314

198

Volume

York

members
American

and

of

the

Stock

New

Exchanges.

Mr. Darnall has been associated

with

institutional

the

of the

department

organization.

.

that

the

as

increases

house

the

in

and
for

.more

the
;

mortgage company's reliance

mortgage borrowing costs usually

on

Federally-backed

unsecured

To

for

than

lower

are

And

grows.

are

invariably longer

into

together

probably
ments.

monthly

reduce

pay¬

of

credit
not

serious

the

tive

a

restrictions,

as

believe.
but

of

a

Foreclosures

in

probably

are

as

are

makes

feel

Many

of mortgage

field

the

lending

Depression.

rising

Thus, mortgage bankers may
to

of

find

tional

a

is

one

ruddy

of

evident,

progress

earnings

excellent

'With

cient

yet

close

to

the

to

With Parsons

their

experience

&Co.

the conven¬

to tap

way

mortgage

have

Parsons III has

have

Ohio—Edward

joined the staff of

&

Parsons

greatest

Co.,

Inc.,

East

Ohio

Building.

growth."

the

cash dividend stage. Ad¬
for
example,

Mortgage,

vance

made its first cash payment

since

u.

1952

this June and established a

quarterly five cent payment rate.
A

dividend

stock

3%

mortgage

1961

_______

made

.1961

I960—_

51,800

1960

_______

1958

_

47,900

_

—

per

share

1956_____

1959

43,000

i958_

38,500

1959

1955____

$168,300

:

32,600

153,000

___.

141,300

1957

—35,600

_

Family Houses—

1962

„

also

quarterly

initial

its

—Non-Farm 1 to 4

$59,000
56,600

_____

1957

panies

debt outstanding

—Multi-Family and Commercial—

Com¬

was

made. Associated Mortgage

s.

(In Billions)

1962

130,900

.

___:_

117,700
107,600

_______

1956—

99,000

1955———

88,200

less than three months after going

public and paid
sive

second succes¬

a

dividend

quarterly

of

8c

a

share in October. Atico Financial,

others, began paying cash

among

in

dividends

market.

of

many

Several

1962.

others

MORTGAGE LOANS
RESIDENTIAL

•

CONSTRUCTION

COMMERCIAL

representative; mortgage companies

Earnings per

Operating

Company
Year

Mortgage

Advance

Atlas

Months

Charter

Mortgage

Jersey
Kissell

United

0.21

6.6

3.8

0.57

2.9

DO.97

31

,

31,

1962-

4.4

1962.

2.0

2.0

1.04

3.1

Dec. 31,

to

Dec. 31,

1.4

1.1

4.0

2.7

0.58

1962.
1962.
Months to May 31--

Davin

•Plus

3'r
4 Vc

4'/(■

2

■;

0.40 ,i.; 175
680
0.85

Months

to

Dec.

4%

,

is
2V2

250

0.20

Stock

Traded

OTC

2.1
3.9

OTC
ASE

4.3

NYSE

__

OTC

1

—

OTC

i4% Stock
'

0.16

OTC

6.5

OTC

Z36.91

166

80

4.00

5.0

i-

0.57

488

8

+0.14

1.8

OTC

423

6

§0.10

1.7

OTC

508

10

0.45

4.5

OTC

3

4.0

0.33

0.30

3.7

3.6

0.62

,0.90

.

,

'

3.3

3.7

DO.46

D0.08

.175

2.4'

31.

3.9

0.12

0.54

3

.

ASE
OTC

7 V2

stock.

SPlus

6

0.30

12

*

Where
Yield

stock.

tPlus

Months

6

Investments

0.32

8V4
7

400

4.7

to Dec. 31,

1962.
to June 30-

Year

"$0.20

9V2

v"

0.57

51.72

to Dec. 31,

9

Mortgage

Whatley,

440

'

0.31

,

Year

Improvement

Wallace

3.8

30-

Year

Company

Stockton,

to

June

Div.

200

N.A.

•

Mortgage

Palomar

Mar.

to Dec.

Year

•

to

Year

Company

Detroit

to

Year

Company

Colwell

30-

2.3

9

Credit

4.6
N.A.:'.

Latest
Stock

Price

$405

0.52

0.70

N.A.

to

Rate or

Recent

(Mil.)

$0.83

$0.97

$3.4

$4.6

April 30

6

Financial

Atico

to

Sept. 30
Months to June

Year

•-Associated Mortgage Co.'s

Value

1962

1963

1962

1963

Cash Div.

Portfolio

Share

Revs. (Mil.)

Period

Annual

Approx.
Mortgage
Servicing

Total

stock.

D Deficit.

N'.A. Not
N.A.

•■'Total

available.

operating

'

revenues

and earnings

per

share for fiscal

1963

ending Sept. 30, 1963 are

estimated.

DETROIT MORTGAGE
333

WEST

FORT STREET,

DETROIT 26,

& REALTY CO.

MICHIGAN

•

WOODWARD 2-0800

Offices in Birmingham, Grand Rapids and Flint

We

were

the

original organizer of and principal underwriter for:

Associated Mortgage Companies, Inc.
and

we

have acted
-

or

as

principal underwriter for

financial advisor to:

Specializing in West Coast securities,
we

have acted

as

investment

■

bankers for:

Advance Mortgage Corporation




The Colwell Company

The Colwell Company

Mitchum, Jones &Templeton
Incorporated

Shields

&

Company

E.

CLEVELAND,

picture, "effi¬

companies

mortgage

publicly-owned firms are reach¬

Government will never cash disbursement of $.08

right after the Great

world

a

pie.

mortgage

the

many

period used for competi¬

purposes

smaller cut

of again reach the importance it had

relaxation

factor

the

that

Foreclosures, although they are

symptomatic

sphere.

his

outside

provide a far

gages

: 'T;

/;/{/,. ■;v.

the bank and the borrower,

will Yet FHA- and VA-insured mort¬

mortgage

a

then, the picture for

industry

health.

ing the

directly be¬

arranged

fallen

have

that raking various loans

means

are

tween

well. This

as

mortgages.

date, conventional mortgages,

which

personal loans. Repayment periods

server

.

the

afresh

borrowed

in all,

All

be "r- Another bothersome problem is

can

Ruddy Health

many

asking

are

equity.

the

over

that

amount

the

years,

lenders

equity

owner's

home

reports

credit

better

out

points

Klaman

Dr.

poses.

Established 1920

6

The Commercial and Financial Chronicle

(1802)

thoughtful

Tax-Exempt Bond Market
DONALD

BY

the

fact

The

passed

despite

that

other

the

on

handily

statewide

points

evident

The: state
lack

The

of

months

This

enough

and

yields

prevail

disregard

in

that; high

grade

yield,

now

as

in

earlv

20-25 basis

did

points

tion

persists

bond

prices

As

bond

condi-

for

up

is

..

T

of' New. Jersey

since

grade

20-year bond yield Index averages

1972

3.103%:

at

A

we°k

yield'was

averaged

Thus

from

the market has lost another quar-

The

ter

000,000

of

point in the

a

of

course

a

quietweek. This gradual weakenhas

ing

been

expressed

since

averages

the

sents

The

the
ndex

repre-

a(new low point tor the 1963
The

market.

previous ■

noted July. 17
The

present

predicated
ket's

on

was

ease

less

appears

factors

economic

,television

of

than

New

on

•short-term
with

consonance

rates

are

has

in

situation,

Querulous

there

enough

at-

titude throughout the ranks of

our

a

market makers to beset the entire

bond;

market

in

a

nervous

the

fact

of

a

70% has

gossip
rate

set

the

concerning

MARKET

of

citizenrv
.N
i

stock

evince

in

is

ffeneral

>

ap-

a

idle

stunning
fi.

the

imnatient

,,r.ii

at

,

of

The

3V2%

_

to

degree that may gradually alter

view

California, State
♦Connecticut, State
Nev? Jersey Hwy. Auth., Gtd

discernment

to

3%%

the

sometimes;cynical
reaction,

mass

Jersey

vote

SERIAL

has

a

but the

mild

of

a

ISSUES

Noon

Bid

3.30%

1982

time.

issue

The

the

1981-1982

3.25%

3.15%

3.10%

3.00%

3*/4%

1981-1982

3.05%'

2.95%

3%%

1974-1975

3.00%

2.85%

1981-1982

3.20%

3.10%

other

and

changed

and

the

on

3.564%

represents

a

loans

continued

levels

feeling

Last

3.20%

3.10%

3.40%

3.25%

3.14%

slightly

caution

A

prevailed
dealers

as

where general

might

again

once

in volume.

appear

3.15%

but

previous weeks.

investor demand

3.25%

account

of

managed

mention.

Equit¬

by

able Securities Corp. was the suc¬
cessful

bidder

at

3.447%

a

net

interest cost for $2,016,000 Owens-

boro,

Kentucky

revenue

School

(1964-1980)

bid,

a

Building
The

bonds.

3.454%

trading market in:

of

members

Swank, Inc.

Lynch, Pierce,

Smith.
Bros.

Common Stock

W.

&

L.

Boyce,

the

to

yield

3.50%,

R. S. DICKSON &
COMPANY
IMOOKr«RATCi

dicate

totaled

The

School

Member* Midwest Stock
Exchange ^
YORK

press

Fenner &

Co.,

&

Stein

Alder & Co. and

Graham-Conway
Scaled

NEW

Lyon

&,Co.
from

2.20%

to

syn¬

$523,000.

000 general

Dis¬

obligation (1965-1990)

bonds to John

Nuveen

JACKSONVILLE

coupon.

at

100.132

&

for

The' second
>

Continued

7,300,000

Co. and
a

bid,
on

1965-1983
8:15p.m.
1964-1984.11:00 a.m.
1964-1975
11:00 a.m.

1,040,000

'

Y<.

1,860,000

-

Court House Bldg.„

County,

_______1

Calif.

.

3.85%

100.01
page

39

•

,

•

.

2:00 p.m.

.

1963t1988

10:00 a.m.

1964-1983
1966-2003

2.265,000

;C

*

November 15 (Friday)
Graftcn & Cedarburg Joint
;

District

School

1,068.000

1, Wis

No.

State University_______

Iowa

16,000,000

—

7:30 p.m.

November 18 (Monday)

Ky.

Water

Flood

Co.

Monterey

Cons.

Tp., N. J

Modesto

N.

Co.,

12,900,000

Pennsylvania

Authority,

1,000,000

Ogden

1964-1977
1964-2003

10:00 a.m.

1.175.000

20

6:30 p.m.

(Wednesday)

Calif—

30,000,000

10:00 a.m.

1964-1993

5,800,000

— ~_—

King Co. Renton S. D. No. 403, Utah

Calif—-

Angeles,
York

1:00 p.m.

Metro Dist., Conn.__

Hartford Co.

New

1967-1980

-2,365,000

City, Utah

Bay Municipal Dist.,

Los

Noon
11:00 a.m.

6,635,000

November
East

1964-2003
1964-1980

1,200,000

D.' No. 4, Minn.'

Co., S. D., Utah——

Coll.

11:00 a.m.
10:15 a.m.

/

——

Cruz, Calif.—

Washington

1965-1988
1965-1989

32,950,000

-/

State P. S. Building

Pa._

Rochester Spec. S.

(Tuesday)

1,360,000

— — —

Raleigh Utility G. O.., N. C._
Santa

1965-1984

1,000,000

——

City S. D., Calif.-

1:30 p.m.
8:00p.m.

1966-2004

2,000,000

—-

C

;

1,060,000 ''1964-1983

November 19
Columbus,

1964-1990

8:00 p.m.
8:00 p.m.
8:30 p.m.

1965-1982

&

Control

Dist., Calif.——

North Brunswick

1,887,000

1,125,000

;

—

State

1.965-1983
1964-1993

2,560.000

24,000,000

— — -

Housing Finance

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

,

Agency, Univ. Const. & Expans.
Revenues —————

1964-1965

62,765,000

underwritten by syndicate headed
by: Phelps, Fenn & Co., Lehman Brothers, Smith Barney & Co.,
(Negotiated

Worcester,

H.

to

purchase

Morton &

be

Co.).

.

8,600,000

Mass.

November 21
Alexandria City Imp.,

Broward
Cedar

1,450,000

Rapids, Iowa

17,000,000

N.

Y._

1,000,000
1,300.000
1,449,000

—.a—.

— __ — —

l—

November 25
East

Brunswick

1964-1980' 10:00 a.m.
1969-1980

11:00 a.m.

—

—

& Sanitary

Colo..

District,

2:00 p.m.

2,000,000 .1965-1986

New York State Power Auth., N. Y.

Troy,

Noon

5,000,000

Va.

Fla

Co.

—

(Thursday)

Watertowri, N. Y\^

District, New Jersey

associates




Yuba

High

Regional

GREENSBORO

GREENVILLE

N.

Syracuse,

—

1964-1988

,

2:00 p.m.

(Monday),^.,,
1964-1980

8:00 p.m.

10,000,000

1965-2003

10:00a.m.

5,000,000

1964-1983

7:00 p.m.

1,200,000

N. J

Tp.,

November 26 (Tuesday)

trict, New Jersey awarded $1,575,ATLANTA

1964-1993

Tp. H. S.-

111—

Standley Lake Water

time balance in

Lenape

1964-1977

1,800,000

Y———.

N.

winning account include Almstedt
Merrill

RALEIGH

Coll. Dist. 201,

Jr.

and W.

major

1968-1994

3,000,000

Belleville

Schenectady,

in¬

net

Brothers, J. J. B. Hilliard & Son,

COLUMBIA

Clair Co.

Corp.

Other

CHARLOTTE

St.

terest cost, was made by the First
U. S.

^

2:00 p.m.

3,000,000

Etc., CSD No. 1, N. Y.—_

two

were

brief

2:00p.m.

^

89, Oklahoma--

Weber St.

Thursday there
worthy

runner-up

apparent availability.

in

groped for levels,

The

3.25%

to

these

keen

were

underwriters

issues

3.19%

due

buy

be

to

which

of

».

among

3.05%

3.35%

No.
Parma

for public

up

to

1965-1984

Cons.

Bank

East

Par.

1964-1979

T
1,000,000

&

Arapahoe County Sch. Dist., Colo.

holiday was the

Completion

3,780,000

—

Center

Dist. No. 4, La.,^—_

Playground
Jefferson

J._^

N.

Comm.

Par.

8:00 p.m.
8:00 p.m.

/•' 1,375,000

Livingston Tp., N. J._____________

calendar

issue

new

$48,275,000 of bonds

3.20%

«,

Hamilton. Twp.,
Jefferson

8:00 p.m.

2,150,000 L1964-1978
1964-1989

N. J

bond

actively traded issues.

Election Day

3.15%

—

Atlantic City,

Breitung Tp. Sch. Dist., Mich

Oklahoma Co. Ind. School District

lightest to date this year with but

3.30%

Housing Auth. (N. Y., N. Y.) 3V2%
1981-1982
Angeles, California
3%%
1981-1982
♦Baltimore, Maryland
3V4%
1981
♦Cinqinnati, Ohio
3V2%
1981
Philadelphia, Pennsylvania
3,%%
1981
♦Chicago, llinois
3V4%
1981
New York City
3%
;
1980
Nov. 6, 1963 Index=3.103%
,

Pa

Sewerage Dist., La

Recent. Awards
•

—

November 14 (Thursday)

toll

road,

revenue

This

Asked

3.15%

Philadelphia,

Flatwoods,

New

We maintain active

1965-1994

Mich.___

Co., Ala

quarter point loss over our

good

list of 23

Los

No

31,800,000

against

as

back.

lower than
Maturity

2.90%

„

Delaware, State

*

8:00 p.m.

entire list has been

6

Dist.,

11:00 a.m.
7:30 p.m.
2:00 p.m.

1965-1988
1969-1993

2,350,000

5,400,000

Refunding,

Nov.

week

Texas—

Rd.

10:00a.m.

yield Index averages out at 3.58%
as

10:00 a.m.

1973-1990

not

Chronicle's

1965-1987

1,000,000

Easier

pressure

1,500,000

-

City Water Auth., Tex.

Co.

Clear Lake

side.

The

at

'1981-1982

3%
___

—

much

have

4:00 p.m.
11:00 a.m.

November 13 (Wednesday)

during the past week.

Quotations

Ky

Co.,

1965-1984

1965-1991...

,•

Mobile

inventory

toll

sale.

shown

Woodford

4,000,000

——

List

have been quieter

issues

usual

confiscatory

beginning

are

individual

the politicians'

Rate

Pennsylvania, State

than

C.

N

1,405,000

1965-1988

new

utility

public

revenue

that

that

is

j-

long-term

bridge,

Co

Wake

1964-1992
1966-1978
1963-1965

6,000,000
508, Minn.

Peter Sch. Dist. No.

St.

10:00 a.m.
8:00 p.m.
11:00a.m.
10:30 a.m.

,1964-1987

38,270,000

— .

Wise.

Milwaukee,

7,;;
Bonds

of)

(State

1,240,000
4,000,000

—

1964-1989

ing.

easy

public

Maryland

(Tuesday)

D., Calif—

Hampton Tp., Mich.

balances, in effect, up for bids al¬

The

Union H. S.

Side

1,000,000

most from the moment of reoffer-

under

>

monstrous

voters

REPRESENTATIVE

Nevj York, State

a

conspiring

rediscount

ON

proper

conclusi'ons

the

a

both

Revolt^

nancial •. proposal

increase. Talk of such action
>

.

or

obsession

drawn from this

b

defeat

levels,

Street to
a

of

any

market margin increase from 50%
to

the

V

Q

neither

political

precluded

tax.

November 12
East

$500-$600.

secondary

Dollar

Mich..__

2,000,000

little

with

Noon
8:00 p.m.

Maryland
Waterford Tp. Sch. Dist.,

a.m.,

,

Islip U. F. S. D. No. 9, N. Y

,

:

relationship,

based

ih

1964-1989

,

Lake Orion Comm. S. D.,

offerings

some

1964-1988

4,250,000

4,700,000

.

past

$550,101,000. More

unlikely

seems

com-,

,W
l0°S,e TZ T T ??*"
te™ publlc debt' budgets and tax
rates

de-

fensive posture.

Although there be little if

but

for

area

turnover

proposal

has

now

Diti/cns'

m

prevails

news.

The al-

more

a

broad

a

proach.

the international

market

money

and

income tax. One

nor

needed

js

Al-

by

Jersey

saies

though Secretary Dillon has again
our

radio

spending

prebensive

reassured the financial community

that

roundly

was

nkely to be

seems

million

11:00

&

111

Blue

the

in

1964-2002

Bldg.

Univ.,

over

municipal

averaged

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

2:00p.m.

the

over

matter.

Current total is

ternative to this unusual proposal

mar-

factors.

involved $500,-

its furtherance.

supported

the municipal

technical

broader

low

at 3. 0/o.

and

prOp0Sition

July

present

state

have

on

that

little

but

or

1964-1992
1964-1973

Wash. Co. Jr. Comm. Coll. & Sch.,

Brazoria

week

2,695,000

9,750,000

Illinois

Co.

&

Morton

20.

changed

past

the

service

more.

or

Nov.

issues in question,

or

defeated in spite o( the broad use

August

following

recovery

break.

thereafter

the

& Co..

supply of inventory appears

have

to

by

Hi

W.

for

debt

to

the

bonds

syndicate

a

Smith, Barney

Brothers,

and

The

slated

by Phelps. Fenn

Lehman

about

New

issue

by

be

Finance

Housing

reoffering

Co.

to

$62,765,000

(1964-1995)

month

interest cost

The

the

early

paying... off

the

managed

unusual

was

revenues

issue

large

for

of the. &

use

Turnpike

Jersey

applied

this

ago

3.09%.

for

colleges,,, etc.

payment

meant

it

New

cut

high

of

manner

,

State,

Agency

not explicit and the

were

money

J

schools,

issues

is

issue

Noon

20,009,000

Imp. & Refunding,

$500,000,000.

considerably

negotiated

York

"$750,000,000

Details concerning the

Commercial and

Chronicle's

proposition:

only

added

the smallest volume

as

highways,

now

obtains.

Priqe Erosion Continues

than

less

1964-1983

No.-24, N. Y

than this amount for weeks.

more

The

which

vote since Wolrd War II.

a

State

the

at referendum

up

only $1,500,000,000

is reported

yields and

spread

total

1964-1983

Co., Ill

Eastern

issues

public sale through November

now

totaled

than they

normally

scheduled

1964-1983

1,500,000

8,650,000

Brookhaven UFSD
Cook

early September. Scheduled

tentatively

The average has been

Day

been

8:30 p.m.

n,177,000

13, La.

Sch. Dist. No.

J.

Boston, Mass

has

it

re-

Election

volume of issues

:

This week

for

to

likely

tax-exempt• Half of this volume involved but

stock

the

not

than

the

On

years.

the

than

Financial.

and

lighter

1,500,000

Bloomfield S. & Town Imps., N.'

Light Side

on

Municipal

Building Construction, N. Y

issue calendar now ap¬

new

since

supply of state and munici-

one

yields

narrower

The

\

pears

relatively>attractive,

between

/

District

Port

Boissier Par.

cent

from

This

ago.

/

November 7 (Thursday)
Albany

demanded

alert citizenry.

increase at the record rate of

from

and

more

with

;

responsibility

progressively

Calendar

pal offerings seems

fact

fiscal

already

de-

Proposition Rejection

than they

more

business

more

a

New Jersey's Huge Bond

The

bonds

average,

August

months

six

the

20-year

an

10-20 basis points
did

of

by

ebullience

be

>'\

•

y

to

1

market

will

the

despite

improved

on

scheduled.

as

circumstancecontinues

stock

velopments.

initial investor interest to support

prices

premature

be

based

issues has for

attract

to

recent

distribution,

new

failed

could

from

suffer

to

primary

pricing of

bond

municipal

,

continues

market
a

and

that

the following tabulations we list the bond
issues of
$1,000,000 or more for which specific sale dates have been set.

the

up

voters' vital" interest. It is

Thursday, November 7, 1963

.

In

ballot

same

.

Larger Issues Scheduled For Sale

allegiances involved.

propositions

\

D, MACKEY

independence,

political

.

Bowling

Green,

Burbank.

Calif.

Minnesota,
Sch.

Ky

State

—

Refunding

TTnifs

,

53.400,000

Loans

PnsnHpna

&

D..

Calif

3.000.000

,

—

1965-1984

10:00a.m.
9:00

a.m.

Volume

Number 6314

198

.

.

The Commercial and Financial Chronicle

.

had the
of

advantage

before

features

'shares

for

many

popularity and issuance of preferred
comment

and

years,

Forty
,

They

never

fashionable.

quite

were

preferred stocks

ago

years

(as now) a sort

represented then
of

of

priority

and

higher

yield

writing
ferreds

a

Under¬

than either.

public

and
was

common

providing

usually

stocks;'

.

than

sale

of

stock

industrial

rail,

categories.

It

not

was

for

common

utility

and

all

at

preferred

in back dividends and

300%

a

the

stock,

un¬

in

stocks

Issued
'

Even

in

placed

a

companies

many

finally naid off their accumulated
dividend

and,

arrears,

retired

cases,'

in

many

preferred

their

stocks, this class of security lost

popularity. The dividends proved

often

investors

substantial percentage of

their holdings

in preferred stocks.

Some issues were sought for

features

non-callable
■Kodak

United

7%:

6%, to

Chemical

market

A

that

earlier investors
tive provision.

shares

to

attractive

most

proved

the cumula¬

was

It seemed

so

reas¬

suring to know that if conditions

prevented

payment

the

dividends in any

ferred

of pre¬
year, the

subject corporation was obligated

drooped;

waiting, for

payment
patience

of

wore

thousands

.

be

"in

arrears,''

companies would
later

years

back

dividends

fering

new

would

issues

preferred

that

and

spend

catching

the exception

consistently

of

used

up

have

had

excellent

an

securities

dividend

payments)

many

For

20

were

but

It

adjust¬

the

with

the

of

erratic

preferred

their sharing
failure

the

of

to

of profits, and their

"go up" when

market

did,

■_

the rest,,

that

caused

♦

no

out of style. Corpora¬

go

that

preferred

financing

Convertible

in

convertibles

Here

needs.

Debt

the

as

have

of

were

gains

kind of

the

(2)
(3)

future.

the company

If

%

;'

-

-:

/■•/

.

amount

at

salting

John

offer of such

and
a

as

of

Co.

V.-P.

taxable

unless

or

security

is sold

not take

place for

Not
but

only

is

until

the

there

way,

is

subject
(and

market

to

-

of

new

Mr.
was

new

preferred

higher than
mon

on

related

Finally,

the stockholder
still has

a

it

was

anr

Current

Current

Price

name.

>

O'Brien

in Chicago and

"...

Rosenthal Dir. of

"

.'V"

'

*

Election
as

and
u s e

Company

a

I

:

I '

.»

•

Harold

!•

; <

Inc.

been

has

Rosenthal,

of the founders in

a

59

recently

com¬

Southwest

of the

of

chance

New

has

York Stock

vice-president of finance of'ber firm of
Forest

Industries,

Inc.

been

active

Exchange

in

the

field since 1923.

Phoenix, Ariz.

2 shs.,.

4.50

104

4.3

4.12

111

3.70

11/4 shs.

4.00

102

3.95

1% shs.

4.00

110

3.6

International
Newmont

National

Tel

&

Tel

Mining

4.50

4.6

5.45 shs.

3.30

9514

3.5

521/2

5.2

1.50

Standard of California..
SCM

.

_

Manufacturing Company

1.23 shs.

o

50

2.25

Schering Corp
Corp.

Eaton

1.111 shs.

2.75

Distillers____..

'

V

321

'

,

has

acquired the assets and business of

1.38 shs.
3.03 shs.

'giiiiimimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiig
through Eaton's newly organized subsidiary

Reynolds & Go.
•<

Yale & Towne, Inc.

Members New York Stock Exchange

la/cel/i/eaiuve
i/te

in anncanrin^

afifiointment
The

undersigned acted

John J. O'Brien ill

(rfefjficna/^

an/tcjrev

fl/o it if eastern

as

financial consultant jot both companies

m connection

with the transaction.

i/wi*
( J/u

Kuhn, Loeb & Co.
•'

|

120 BROADWAY, NEW YORK 5, N.Y.

|

|

WOrth 4-6700

1

v

HiiiiiMiiiiiiimiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiMiiiEiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiifiiiiiuli




November 4, 1963

Incorporated

mem-

Rosenthal & Co., has

2% shs.

Consolidated Edison

and

1946 of the

City and more

.909 shs.

Commercial Credit

announced.

partner in

Mr.

York

e w

.4

L., Rosenthal

Director of Guardian Mutual

Fund,

of

of

one

N

y/./

Guardian Mutual Fund

formerly

Ware h o

the

'

Fates

"

2.25

Cities Service

Society

.

For Each Pfd.

3.7%

As¬

officer'of

Analysts

Chicago.

Presi¬

was

Brokers

Stock

the

securities

3.8

112V2

.

investment

No. of Com. Shs.

Yield

was

member

the

in

Investment

the
of

banking

Storage

been

company

City,

by

Manhattan

stock.

selling

York

1

actually

will >be
the

on

he

years

of

his

Mr.

of

dent

sociates

president of

pre¬

borrow

yield

16

known

circles,

Broad¬

firm.

on) than a common stock. Further,
in most instances the

a

invest¬

the

ment

fluctuation,

acceptable to

more

also

Chicago-

Wayne Hummer »&

for

bearing

is

the

den, president

stronger security, less

a

New

61

James E. Mad¬

benefit,

obviously the convertible

Incorporated,

nounced

if ever).

tax

a

Co.,

a

(which sale may
years,

of

Jackson /&

He

of

partner

Well

H. L. Fates has been elected vice-

not

and

firm

and

firm

Chicago.

partner

dated

sso

Webber,

Mr.

w a s

.

as an ex¬

equivalents

in

senior

compensation

is regarded

merger

change

Paine,

based

Named Schroder

equity,

an

as

O'Brien '

III

a

president of Schroder Rockefeller

regarded

O'Brien

former

capital gain. A preferred stock is,

however,

J.

with

and

as

years,

this

be¬

taxable

East

For the past

market-

seller)

immediately

in

Lauder¬

Las Olas Blvd.

six

In

Reyn¬

office

dale, 207

mar¬

the

the

the

Fort

landing

indebtedness,

transaction, (to

e

will, make his

Curtis

sale is effected for cash or

a

face

;

-

H

heajd quarters

top up!

selling out, or being

a n

iri '

use

most attractive to shareholders -in

merged.

rk

Ex¬

been

to

the tax

o

nounced.

launching pad*,

convertible the

not you—outs the

Y

find:

may

of

of

change, it has

diversi¬

a

You

gains,

in

the

offices

New

convertible

markets,

market

been

of

Co., members of the

tabulations

participating in potential

ket

"package"

a

Florida

Reynolds &

mergers.

they fit neatly into

regulations and make

has

Stock

security

conservative

.a

in¬

comeJ

result, of

today's

for

all of these attractive and diverse

market

of

on

Almost

stocks.

common

list

stocks.

type

away

security

gain

for

southeastern

III

manager

olds

preferred

senior

O'Brien

regional

Preferreds

Rate

American Metal Climax $4.25 V

stock

longer served effectively their

a

shopping

in

.attractive way,

an

potential

the

herent

•

of

virtues

ferred

stocks, the structural limitation in

Dividend
Issue—

re¬

//

only

record

found

Representative

flotations

corporate
;

not

was

offers

new

as new

of

result

a

tions

of¬

of

of the largest issues

some

created not

as

record

after the Great De-v

years

pression

these
or

balance

stock dwindled.

ings of preferred

to

in

convertible

the

J.

named

(1) making defensive investments

preferred
old fashioned
of

the

not

SCM

with

you

this

we

great resurgence

a

provide

preferred

j'e'ars

for

in

them

on

but

preferred

in their corporate structures,,(and

10 to 20

payments,

five

popularity

comes

dividend

these

past

plain variety. Today-the vogue

Ac¬

investors.

of

cordingly, with

permit. ^People little
suspected in the Roaring Twenties,
that, within a decade, hundreds

up

.prudently

of

for

years,

out the

of accruals

organizations.

it

the

and

dividend resumption and

later on, as and when
earnings and cash position might

to pay

instances;

many

isues to provide a certain

preferred

of

feature

prices

anguished

have
Cumulative Feature
.

in

undependable

operating utility companies, which

few.

a

name

their

Eastman

States, Steel

Carolina

Virginia

T%,

—

of

the

combining, iri

Reorganization

though

and

same company;

income- minded

Conversion

Lure

and

accompanying

will

have witnessed

in

John

on

con-

submit below

•{ The

until quite

or

the ghost.

tip

gave

Edison

•

(J .01*1611

.

by merger.

fied

Within

we

created

debentures

finance,

corporate

solidated

lost

and

is

finally

yield 2% more than

bond in the

preferreds

so

bonds

recently." f?.-;""..

new

those days to

to

equity,

y

J

.

'

comment

1Q. interesting issues. All but Con-

pre-

1920's—-With sizable emanations in
the

7%

y

J

at

common

The

accumulated

which

exchange.

this capsuled

the dual attractiveness of the

of

ex¬

Railroad

Rutland

was

common,

vertible

and

classic

The

of

leverage

stockholders;

dragged-out preferred

a

preferred,
over

grade

the

make

bankrupt.

ample of

big business in the

a

companies of course,

did

went

the

bond, but affording

a

protection

more

lacking

security

hybrid

Some

With

and

use

time

more

created

—

ground

variety.

in

ment.

the

.

7/;

current/resurgence

the

on

of interest in the convertible

for

price is somewhat above the

prevailing market for

higher earnings for

and

\

benefit

tax

payments

money

in the

the

—

smaller

review of the decline

sion

lower rate than

a

preferred dividends. Both of these

Ity Dr. Ira U. Cobleiph, Economist

A

"Zroutr;?veV°thougherc^ver-s Reynolds Appoints

interest could

Bond

taxes.

arranged at

7

preferred

over

having their interest deducted

be

Of Convertible Preferreds

(1803)

investment

The Commercial and Financial Chronicle
8-

ments

DEALER-BROKER '
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INVESTMENT LITERATURE

PARTIES

INTERESTED

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TO

—Thomson

Industry

prehensive study

St.,

Wall

37

10005.

Y.

N.

York,

New

Com¬

—

Equity Re¬

—

Associates,

search

Steel.

'

a;

>

Co.,

Companies

Insurance

78

medium

Stock

Canadian

the

Market—Brochure—Burns Bros,

Ont., Can¬

Street, West, Toronto,
ada.

Limited, 220 Bay

nette Company

Canada.

Street, Toronto 1, Ont.,
Stocks

Canadian

study—Investment
61 Broadway,

Review

—

—

& Company, Ltd.,
Adelaide Street, West, Toronto

Utilities—Review—Burn-

Broad

60

Company,

York, N. Y. 10004.

New

Street,

10005.

Y.

review of- St.

a

in

used

stocks

the

and

Averages

tivities,

son's

career

variety of general information on

tions

of Corpora¬

Scott Index

&

indus¬

corporations,

on

of

Index

Industries

&

articles

business sub¬
taken from over 200 financial
and

tries,
jects

general

publications, 350 broker's reports,

before

analysts

societies —1962

Annual

Cumula¬

tive Volume $30.

Further informa¬

and

tion

speeches

the

on

weekly

or

monthly

on

request—In¬

vestment Index Co.,

206 F Colon¬

available

issues

nade

Building, Cleveland 6, Ohio.
Review—W.

Gold

Co.,
N.

Wall

14

&

Hutton

E.

New York,

Street,

Co.,

/

Adams

West

105

Street,

both

Averages,

market

35

over

-

Yields

dend

the

R e

—

v

i

trial

Bond

cial

Aguadilla,

available

American

are

Enka,

American

and

Market

—

Cohu

N. Y. 10004. Also avail¬

comments

Refining

Oil

ments—R.
618

Olive

Commentary

Stetson,

York,

analysis

an

Coke

of

Corp.

Full

International;
Garden

&

St.

..

Corp.,

available

<

Credit

Corporation

ton, D. C. 20005.

Inc.,
Y.

60

Company,

Limited—Anal¬

Brokers Limited,

ysis—Equitable

available

Also

analysis

are

is

George Weston

of

Active in Our Trading Dept.:

CORP.

Corporation
Analysis

an

—

New

Wahl

BAY

the local

He

Also

available

TIME INC.

An

annual

thousands
'

■

•

:

Troster, Singer & Co.

are
on

38

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and

list of films
Finance

re¬

cently compiled by the IBA Edu¬
cation Department.

Copies
their

of

this

to

■

first

IBA

issue

are

and

members

representatives through

the

Education Department, Investment
Bankers

Association

Thirteenth

St,

of

America,
Wash¬

N.W,

ington, D. C. 20004.

•

Joins Paine, Webber
MINNEAPOLIS,
Rahn has

Minn.—Noel

in the

Webber,

Jackson

AKRON, "Ohio—-James W. Maples
has

become

Bache

&

Co,

Building." He

connected

vyith

National

Second

formerly

was

with

V

Fulton, Reid & Co, Inc.

Needed
ment

Bank

offered

to

Elxecutive Secretary,

Association,

applicant.

Floyd *■ Call,
Florida Bank¬

Orlando,

Florida.

ASPICNB

complete, concise

For Full Information and

FREE

sample of latest index
mail this coupon

.

.

r

Investment index
Colonnade

NAME

company™]

Bldg, University Circle
Ohio

Cleveland 6,

SENIOR ANALYST

.

today!

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experience in a variety of in¬
dustries.
Preferred age in the
thirties.

Salary $20,000 to $25,000

depending
in

on

experience. Send

confidence to:

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cial Chronicle, 25 Park
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twelve

salary

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inquiries

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of

assets

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suitable,

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old

year
-

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New

Transcript
New York 5, N.

organize Trust Depart¬
five

having

million.

CITY.

HA 2-4510

to

for

resume

54 Wall Street

&

:

FUNK & SCOTT INDEX

issue.

Dept. 928

P.

added to thd staff

been

Paine,

BROKERAGE

INDEXED and BRIEFED WEEKLY

ADDRESS.

Teletype 212 571-1780; 1781; 1782

being

Wharton

Investments

ers

Wall Street
Trinity Place, New York 6, N. Y.

Survey
the

at

announcement of

an
on

to

in Full

Members New York Security Dealers Association

74

was

leading business and
financial publications

corn-

page

reports

with

with

management.

'Now. With Bache Co.

connected/with

Plus—over 140

—

TRANSCRIPT

STREET

f

ducted

HOUSE

of

At Your

records

along

Other articles report on a Stock

Ownership

Wis.—Nicholas

Sutter

111

Brokers Reports

ANHEUSER-BUSCH INC.

described

are

TRUST OFFICER

[)

GAS

CORP.

administra¬

sales

Company.

&

Analysis

Talbot,

Continued

,

other

office of the Milwaukee

Seagrams

Francisco/ Calif.

94104.

and

other facets of sales

III

Industries—Comments—
San

training,

sales

used

of

has become

Walnut St.

York, N. Y. 10005.

&

starting

With Francis I. du Pont

.

GREEN

Stieglitz, 52 Wall Street,

&

practices

Lim-

Dreyfus

—

and

manage¬

Current

practices

REPORTS

Chemical \ Co.

Dow

Street,

ETHYL CORP. B

'

tives,

ited.

Distillers
—

specialists in

training.

recruiting and testing,

Mo.
com-

D y m o

.

several

Yonge Street, Toronto 1, Ont.,

Hannaford

ILIKON

Square

Francis I. du Pont & Co, 234 East

Craigmont Mines

Halle

INTERSTATE

and

con¬

Curtis, Pillsbury Building.

—

N.

Louis,

Banks, Brokers and Financial Institutiont

COLORADO

Madison

were

direction

Co.;

corporations.

/

ITEK

Burrus

Investing

the

salaries for registered representa¬

O'Nuts; Hilton Hotels

&

Coal

Maust

City

10004A:^-'r:^^;;.^;

Stocks Currently

Co.,

Inc.;

Co., 2 Broadway, New York, N. Y.

For

Se¬

Banknote

Columbian

Inc.,

available
of

Lines,

Export

in

deco¬

;

Limited

Also

63101.

American

was

director

survey

ship; recent books of interest; and

in

countries.
a

Corporation,

'

Investor—Com¬

Warren

L.

Street,

is

Patterson

he

and

under

under

.

was

been

Chock

Co.

Forgan

,

Corps,

in Military

has

He

ates,
ment

425

Salle

La

South

135

Consolidated

&

the

1930

Technicolor

Gas and National Can Corp.

Canada.
and

In

by 35 foreign

curity

National

on

Com¬

Major in the

a

Mills,

is

;V,

Bill

the

war

to Colonel

Intelligence.

Mr.

he

I

of

Captain of Ordnance

Corps.

promoted
rated

f o r

New

Broadway,

Engineer

Com¬

Consular

War

a

as

Practices

connection

in

guidance of James O. Rice Associ¬

City; Chair¬

Nations

City of New York.

and after the

Borg

Chief

and

seminar

tive

is Commissioner

the

World

France

com¬

Co., 30 Broad Street,-

&

are

of

rank

1951, resigning in

United

and

the

In

Warner—Comments—Orvis

New York,

Switzer¬

to

personal

Events

of the

for

spring

new

Survey

a

Management

last

ducted

—

Bank

'-'A

Stock

Public

Gel-

Industries,

Burlington

Brothers

Minister
the

1947.

-

mittee

mercial Barge.

Borg

in

Guatemala

Protocol of New York

Street, New York, N. Y.
Also

on

Yugoslavia

appointed Am¬

was

to

of

Secretary

1938 to 1939. He

present he

man

the

on

vestment Banking Industry." Both

and

with

,

„

Government
Puerto —Analysis—Ferris & Company,
611 15th Street, N. W, Washing¬
Rico, San Juan, Puerto Rico.
Ponce

and

guez

10004.

Oji Paper, Shin Mitsubishi Heavy

97

Letter,

Growth

reports

year.

in

on/'Sales Management in the In¬

1953.

of

article

public service activi¬

Ambassador in

Co.—Review

Engineering

Sales

Fu¬

with the New York Group course

-

'

>

topics.

published in¬

time

became

land

Street,
Chicago, 111. 60603. Also available

Baya-

149

Oil,

—

&

Carolina, Guaynabo, Maya-

mon,

1944

He

Co.,
2
Pittsburgh, Pa.

Center,

Wall

Co.,

Y. 10005.

on

Report

Lestrange

Commonwealth

Municipalities—Spe¬

Rico

report

in

be

a

Council,

became Ambassador to

Instrument

Detailed

—

long

a

Assistant

as

of

made

Commerce from

on

review of the

a

Inc.—Analysis—Glore,

j& Co., Inc., 52 Wall Street,

Puerto

comments

ties

Stocks—

Comparative Figures—G. A. Sax-

Also available are reviews of Koyo

Nipppn

Denver,

Common

New York, N.

10005.

Richard C. Patterson

The Business

his

started

Wall

Industrial

Bacharach

Fuel

ton

and

bassador

able

Utility

Tax

Seika,

631

Co.,

publication

Patterson,

Market.

Magnavox

Colo. 80209.
Public

60

N. Y.

are

Stocks and

Warner,

years

Street,

Gaylord,

South

Broadway, New York, N. Y. 10006.
Meiji

available

ments

Indus¬

Stick

Salomon

—

&> Hutzler,

New York,

10005.

Jones

1929-1962—Stock

Analysis

—

Bank

36

history

The feature

and

member of

lermann, Dept. CFC, Bache & Co.,

calendar

Average

e w—

Daiwa Securities Co. Limited,

Seiko,

Company
Brothers

Beaunit—Comments—Henry

a

and Divi¬

Graphic

Dow

on

26

Market

Mr.

Telegraph

American Telephone &

will

termittently during the

public service.

01103.

Bureau

ovfcr

Ratios

—

based

business

Dwight Street, Springfield, Mass,

N. Y.

Earnings

Price

and

military,

industry,

—Dynamic

the-

yield

to

as

performance

Winslow,

Chicago, 111. 60690.
Japanese

neering,
the

includes

Scanner

management

issues

ture

engi¬

stamped addressed envelope when

Barnes

Jones

-

Quotation

National

Development

Y. 10005.

Japan—Review—Wayne Hummer
&

mining,

the

various

covered

has

P a r a-

At

industrial stocks used in

counter
the

Dow

the

training,

1963.

industrial

the listed

between

son

New York 4,

ration, and the Paper Industry.
Funk

Mass.

In addi¬

of

Patter¬

—

Inc., 85 State Street, Boston,
02109
(firm
requests

pany,

reviews

brief

to

Mr.

Company

:

and
25Joseph Lead Co. and Globe Se¬
year period — National Quotation
curity Systems and
a
detailed
Bureau,
Inc.,
46 Front Street
analysis of Union Carbide Corpo¬
is

available

Also

Para¬

Dominick

Dominick, New York.

Nov. 1,

Over-the-Counter Index — Folder
— Review
Gateway
stocks—Ritt- showing an up-to-date compari¬ 15222.

40 Exchange
Place, New York, N. Y. 10005.

and

banks—Laird,

Education

IBA

L. F. Roths¬

Arthurs,

master, Voisin & Co.,

Electric

analysis of 10
Bissell &
Meeds, 120 Broadway, New York,
Comparison^ and

leading

Jr.,

the

Co., 120 Broadway, New

&

Also

Stocks—

Bank

City

York

of

public relations and promotion ac¬

Broadcasting

Analysis

—

Street,

Situation

Tax

with lists of selected

ham

York, N. Y. 10006.

New

N.

1, Ont., Canada.
Current

Company Institute,

New

Dobie

Draper

Shareholder—A

Chairman

tion

writing for copies).

Fund

Mutual

comprehensive

Market—Review—An¬

Canadian

25

Trust

Union

King ton, D. C. 20005.

44

Limited,

Denton

and

Company,
Building, Washing¬

an¬

effective

child

and

view—Rohrbaugh

published,

Rockefeller,

been

Avery

Committee and Partner,

American

Companies—Re¬

Insurance

Life

-just

nounced

a

Investment

the

of

.

&

mount

life com¬

members

Bankers Association of America,
has

Jr.

the

as

for

limited

—

companies and

small

and

C. ;

newsletter

issue of IBAScanner, a

partner

mount—Analysis—Colby & Com¬

in

values

firm

N. Y. 10006.
Life

Patterson,

Richard

that

announced

first

D. C.—The

WASHINGTON,

&

Cummings

Co., Ford Build¬ panies — Ralph B. Leonard &
York, N. Y. 10005.
Sons, Inc., Dept. CFC, 50 Broad¬
Mich. 48226.
American
Broadcasting
way, New York, N. Y. 10004.
Common Stocks "Prof¬

Prophecies"—A guide to

&

:

Com¬

—

members

of the New York Stock Exchange,
have

joined

Corp.

;l.

4 Albany Street, New York,

ling, Lerchen &

Canadian

Street, New York City,

Securities

ing, Detroit,

its

V

.

York, N. Y. 10005.
Chemical

Securities Co., 52 Wall

New York
'

,

i IBA Issuing /•

N. Y. Securities W News Letter

Corp.—Analysis

ments—Bregman,

&

'

.

*

Co., 1 Chase Manhattan Plaza,

&

Iron

Yawata

and

Industries

*" '•'

'

—Eastman Dillon Union

MENTIONED WILL BE PLEASED
THE FOLLOWING LITERATURE:

Analysis of 60 life

Industry—Report—W a t-

Airline

Thursday, November 7, 1963

.

Patterson; Joins

• •.

McKinnon,: 2

Chemical

Allied

Allied

Transport

V

r:,

•

*'

New

Air

:

Broadway, New York, N. Y. 10004.

THAT THE FIRMS

UNDERSTOOD

IS

V" >

Television Manufacturers—Report

RECOMMENDATIONS:;

AND

Television Manufactur¬

on

•J

ers.

.

.

IT

'.

.

<1~4)

Yorja, N. Y. 10007

Box

Finan¬
Place,

Number 6314

198

Volume

.

.The Commercial and Financial Chronicle

.

(1805)

Other major cities which heard

national principle to much longer

Franc Loan

The

maturities.

It is

action

In Great Britain

but

trend.

I

much

it, does

less

of

indicate

convinced

am

than

transactions
ter

isolated trans¬

an

ten

will

normal

the

mat¬

a

on

may

the

cur¬

'

entail

disadvantages

rencies

Symptomatic of the internationalization of currencies today, and the
concomitant search for financing markets with the lowest rate for

carried

have
in

which result from having a reserve cur¬

For more than

—

the

-

operations

The

in their

of

the

are

restrictions.

drop

of

think

not ap¬

with

up

friendly

the

latter.

cooperation

:A number of devices have
successfully applied for the

in real estate or industrial prop¬

each other's
Central Banks erty.

of

support

mutual

Most

exchanges.

have practiced commendable selfrestraint in abstaining from oper¬
ations which would have embar¬

authorities.

rassed other monetary

Ail this conveyed the impression
long last monetary author¬
realized that exchange

that at

On the other hand, when
such an occasion arises for ridding

like

so,

wanted

between

of

that the
exchange is liable to entail

one

of

chain-reaction

the

however, Inc.,

is,

The

inconsistency

more

apparent than real.

Eaton

Boston-based

&

are

a

of

.series

reserve

a

vice-

Howard,

spread

and

houses

other

over

kand

com¬

reasonableness suffered'

reversal

a

towards

progress

mendable

dollar

show

now

the result of the

as

the

without

do

such

role.'

a

that it

not

would

do

for

cent

francs for the City of Copenhagen

of their

London.

been

first" time

in terms of

that

Subscribers have

Swiss

in

pay

this is

public loan

a

continental currency

a

has been issued.
to

terms

in

issues

now

dollars in London,

Of U. S.

the

Although there have

before

which

francs,

that residents in the United

means

Kingdom

excluded

perfectly understand¬

able and the attitude of the Swiss

authorities
The

deserves

interruption of the closer co¬

operation between Central Banks

incident

this

by
the

unless

two

ties

played

of Swiss francs.

part

on

In the absence of

exchange restrictions in Switzer¬
land, there

nothing to prevent

was

residents in Switzerland from sub¬

scribing
quest

the

of

the

at

Swiss

re¬

authorities

of the Swiss banks was pre¬

none

pared
to

though

even

act

loan.

subscriptions

accept

to

paying

as

But

there

lieve that many

reason

Euro-Swiss

franc

erably the

ments,
rates

well

above

official
activities.

turned

of

francs

a

correspond¬

in

But

Implications

of the Loan

allowing

was

this issue

to

to increase London's

as

an

international fi¬

of

of

the

dividend

Co.,

"Two

Cincinnati

in

"Ship"

it

is

R.

of high

its

requirements

which he has

by

ties business and this is
that

all

of

welcome.

counsel; S. Whitney Bradley,
director
of
sales,
and

national

exception

William H. Gassett, economist and

I

vice-chairman

have

no

us

&

of

knowledge of

■

investment

committee.

as

would

It

a

direct

further

seem

to

the

tive

in

leg¬
Stock

Swimming

a

has

/

Tide

the

purchased the properties of

Having said all this, I have to
add

that, in trying to prevent the

London

loan

the

transaction in

Swiss

fact

Swiss authorities

Texas Pacific Coal and Oil

swimming

The

basic

increasing

"

are

against

_

,

..

/

internationalization
As

for

a

funds

concerned, this end has

are

'

-

■

\

* v-

'

Company
■

.

1..."

been largely attained through the

development

Under
tions

existing exchange regula¬
they
to

power
even

,

would

have

prevent

though

I

a

am

had

no

transaction,

sure

Morgan

Grenfell & Co. would have heeded
the

gentlest

approval.
no

hint

The

rencies.
at

A

which

subject to
reserved

a

rency

encountered

borrow.

to

in

lend

made

the

grave

concern.

The

amount

in¬

is

production payment of $216,000,000.

centre

in which

it

highest yield.

maturities
transactions

for
are

nancial
a

resources,

but

it

might

dangerous precedence.

On the face of it the attitude of




big

negotiations.

a

an

acted

as

financial

advisor

to

the

buyer.

position

and

in

can

obtain

the

-

currency

lengthening,
excess

of two

Carl M.

matter of difficult

The loan transaction

in Swiss francs for 10 to 20
years

is

The undersigned

cur¬

Gradually the

years

is still

a

Euro

though anything in

create

is

cheaper to

in

for

country of Switzerland's fi¬

that

is

volved is, of course, very modest
a

in

position to bor¬

also

in the

currency

by the Swiss National Bank

a

which it
It

though strong representations were
which views the transaction with

firm

in the centre and in the

official dis¬

even

markets

stage has been reached
any

currencies is in
row

of

opposition,

the

enough to be able to deal in Euro¬

loan

official British

of

.

consideration of $60,579,443,

short-term

as

.

of

finance.

far

•

the

is towards

trend

■

attempt to apply the inter¬

November 4, 1963.

on

Stock

Coast

encourage¬

Against

Inc.,

to

Asiel

has

&

They
the

are

ac¬

Midwest

Exchange and members of

Pacific

that

Chicago.

This change of attitude
deserved

Co.,

wires

Specialists

Euro-dollars and other Euro-cur¬

sterling.

•

&

of

cause

creasing

on

/

they

nancial centre without thereby in¬
pressure

'

'.r

private

offices

plans,

any

*

Co., New York, and to their own

result of these stud¬

islation

ies.

the

of

long been identified

Cruttenden

should

contractual

for

Go., OTC operations headed by

for

with the possible

But,

1940,

Bob Diehl.

something

and

can

since

and will round out the Chittenden

those who would enter the securi¬

speakers included Franklin

Angeles

Co., ar|d Marache & Co. He will
trade a list of OTC securities with

the NASD has recently

stiffened

on

Los

Quincy Cass Associates, Morgan &

As you

men.

trading
departments

in

Market

selling

pressure

he
by

managed
F. W. Shipley

Chapter

Special

as

called

raries, has

completed and

inadequately trained

Johnson, Eaton & Howard gen¬

eral

SEC

Jr.,

his contempo-

Mr.

criticism," he stated "was

all know,

Oct. 30.
The

the

by

Crut¬

President.

important

and

W.

tenden,

re¬

ago."

meeting

was

announced
W.

&

618

Spring

Street, it

of

than

Inc.,

South

consolidation

seven years

Report

trader

Southern

Cruttenden

payments

during the

Louisville
said:

stock

in

years

The profits outlook is

School

that

25

con¬

degree

same

the

of

veteran

a

over

ment.

tide.

The object of the British auth¬

the

favorable

"One

series of meet¬
the Midwest and South

began

Co.

ANGELES, Calif .—Forest W.

Shipley,

with

1961

leaf and rendered

service

have

francs,

,

LOS

for

and

Basle

interference

new

stability.
would

in

be made

of

in

.

Cruttenden

all

Study."

a

■

ing maturity in Switzerland.

importance

a

valuable

and

the interest rates ob¬

above

in

Zurich,

any

who

then

policy

Shipley Joins

Geneva to do their worst without

interest

the

Epro-Swiss

tainable for loans of

orities

in

ulators

their

holders

Until

the

Gassett

Sto,c£ Fund, addressed leading se¬
ings

its

year.

re¬

standing aside and allowing spec¬

the

deposits

revalua¬

of

since

anced Fund and Eaton & Howard

that

celebrate

anniversary next

"This

he stated, "a

more

XI

curity dealers in

man¬

firms, will

depreciation

greater gain.

even

been

ton

yield of their invest¬

well
on

mark.

D.

pursued

be¬

able thus to increase consid¬

were

had

to

of the subscribers

non-resident

were

the

of

the

followed

for

agents

is

or

tion

constructive

very

a

in¬

reviewed by the SEC—the Whar¬

H.

of the

credit, cash flow will

studies have been

only

since

the occasion of: the dollar

that

they

all

however,

the Swiss authori¬

ago

years

scare

is

deplorable

more

they possessed authorized holdings

were

sympathy.

an

Johnson

William

v"'V-i;" '*t'
Howard, Inc.,

department of

accelerated

past.

At

Franklin R. Johnson

currency.

All this is

of

phase began

arising from the international use

in

in¬

this,

California, has joined the trading

becoming

country to be exposed to pressures

a

40th

of

aware

profits

has

is

loan of 60 million Swiss

issue of

in¬

when

and that be¬

corporate

that has prevailed

small

a

securities

and

one

agement

position

structure

5 to 6%

liberality

glory attached to
argument

that

tinuation

currencies, the

Their

tax

should allow,"

sterling and the

reserve

as

our

source

ex¬

our

being made in

our

and the tax

Swiss authorities would prefer to

other streets.

This

role of

the

in

competitive

be up

cause

by Britain and the United States
from

development

progress

will

disadvantages suffered

crises, in the same way as con¬

in
a

largest investment

nation's

in

Gross
National Product
1964," Mr. Gassett said.

any¬

flagration in one house is liable to

obsolescence

in

Having wit¬

currency.

nessed the

the

become

Eaton &

The Eaton & Howard economist

sponsor

are

point to expansionary tendencies

manager of Eaton & Howard Bal-

authorities

Swiss

The

of

to

generally

enhanced.

family in¬

average

and

estimated

transaction. presidents

a

and

Officers Speak
Three

comfort

dustry

momentum

improvement

ternational

is thing but keen on the idea of
crisis developing the Swiss franc into

and

indivisible,

prevent

of

"high

^

—

investigations
this should be

memory,

associated

upside

growing

vamping

Mass.

these

their confidence should be further

penses,

Eaton & Howard

BOSTON,

If then

the

research

un¬

capital, they try

foreign

their best to

the

of

some

searching

is the

plant and equipment, increase in

peace,

or

war

of

themselves

ities have

stability,

long-term investment

or

Ex¬

Commission

vestors

come,

bank

short-term

of

form

the

in

deposits

reg¬

the

period, it only served to

goods, rise ip

pear logical/ On the one hand,
monetary authorities could' and
,the degree of coopera¬
they are doing their best to dis¬ should aim at
tion, based on give-and-take, that
mitigating those
has
existed . between
Central courage and divert an unwanted disadvantages.
influx of foreign capital, whether
Banks has been approaching the

been

NASD,
the

the end results of two of the most

"Increasing demand for durable

two years

ideal.

the

and

lation, of them.

dealers

While

was

of

atten¬
or

postpone

put

Even

1962.

by rules

and our industry will be
actively cooperating in the formu¬

which began in February 1961."

may

it worth their while to

May

stagnation"

met

itself;

why the current
power

be

with that

vantages of freedom in exchanges

outweigh disadvantages, they

of

level

they feel that the ad¬

as

addressed

the

can

changes

stalemate provided by the market

long,

So

told

reason

has staying

recovery

hands

adoption

Gassett

that "one

monetary auth¬

remedy

form

however,

Nevertheless, he points out, Switzerland would be swimming
against the tide if it tried to stop the international use of its cur¬
rency unless it took the unlikely course of exchange controls.
LONDON, Eng.

the

exchange

rency.

the Swiss authorities may

out.

to

orities of the countries concerned

million Swiss franc loan in the London market
for the City of Copenhagen. Dr. Einzig surveys the dangers this en¬
tails for small countries like Switzerland which do not want to be
loans, is the recent 60

exposed to the pressures

which

in

problems which need

ulations

Kansas City se¬

Nov. 12.

Mr.

„

By Paul Einzig

any
tion

leaders

Louisville, Oct. 31 and New

curity dealers "will be

This

routine.

industry

Orleaps, Nov. 1.

such

years

investment

are

in

that

become

the

9

Loeb, Rhoades &_ Co.

■

.

-

Exchange.

The Commercial and Financial Chronicle

(1806)'

10

is

Confronted

driving

money.

Babson

By Roger W.

The

again the real danger of ".bad"

money

Willi'(ireshain's Law?

If

'7;---

outlines our past

Babson

Mr.

Exceed Expectations

adverse ef¬

Gresham's

from

this

Law

time, the trouble is likely to stem;
from overextension of credit. This

t

By Leslie E. Fourton,* Partner-in-Charge, Institutional Sales

huge structure of debt which we

difficulties with the inexorable opera¬

harder

driving out "good" money due, this time, to the over¬
of credit and burdensome; debt.
Mr. Edison,E. Shrum,

"bad" money
extension

'

1

What

Gresham's

Is

of the

One

oldest

erally accepted monetary theories
is known

Gresham's Law. This

as

is the

principle that "bad money

tends

to

This

drive

means

the

good money.'*

out

and

that is, the

—

they have confidence in—

money

dent

tend; to

the

on

pass

bad

,

the

to

clined

'<7

hoarded.
Then

the
the

printing

money.

with

were

the

Fishman Inc.

interesting

tremely
what

example

in the period from 1663 to

money

that time,

Prior to

1700.

coins

England's

to

happened

were

English

hammered va¬

the

of

riety, without milled edges.
it

made

of

for

easy

the

edges

of

ground off.

these coins to be often

most of the

Thus, in time,

This

coins

became less valuable.

1663

Around
coins

were

full-weight

new

coins began

disappearing into hoards. By 1690
had

Then

a

the

including Sir Isaac
(Who was'%hen warden

group,

Newton
of

reached a critical point.

convinced the

mint)

ernment that it should

defaced

coins.

They

melted down, and

gov¬

call in the
were

then

reminted at full

weight with milled edges and out¬
line

inscriptions. Then the "good"
money came out of hiding!

gold

crisis

in

checks

culminating in

this

to

the Federal

*...•

a

pany,

'

the

Another

.

example

bank deposits
began hoarding cash,
and
shifted
to hoarding gold.

This
of

so

depleted the gold reserves
banking

our

system

that

ciated^with
30

Broad

members

not

.;V

-:7-

the

7;■-

Forms

ensuing bank crisis resulted in the
moratorium
bank

nearly

when

the United

in

a

'14

.

:r\

,

'1:7

Alloway Inv.

Threat Again

Today?

leum

the

DOWNEY,

Calif.-

—

Howard

too
.

in

the

United

States,

we

experienced the painful work-

ings of Gresham's Law during the

period,

War

Revolutionary

in

1797, 1818, and from 1837 to 1842.
At

the

time

of

the

discovery of

er

Florence

from
Ave.

offices

at
the

under

of Alloway

name

of

repealed nor nullified. In view
our

gold,

much

the

publicized

-

growing

shortage

,

of

coins, and the impending replace¬
ment

of

the

Silver

(the.remaining

Certificates

currency

bearing

there

outstanding improve¬

an

the fundamental factors
in the petro¬

Perhaps the most

that

has

there

capacity

8041
firm

Investment Co.

Just

80%
is

been

between

and

Capital Development

G.

MARINO,

Calif—Theodore

Jr.

has

formed

Development

Co.

with

Shad,

1340
the

Lorain
securities

Road

to

Capital

offices
engage

States

oil

and

suggests

and

highly

suc¬

of

programs

companies.

These

automation, lower lease

business.

far

in

be

back

the

most

1963

have

optimistic

is

3.6%

which

higher than

year

a

mates earlier in the year of about

2Vz%.

Of

the

is

demand
for

has

5,3%
Total

all

also

the

level 5.8% higher than the com¬

parable quarter last

year.

who" generally

those

For

negative

implications

cess

crude oil

productive capacity,

it

be well

may

currently is at

as

continuing
to

years.

tive

technologies

to improve

continue

the percent¬

of recoverable oil and better

age

drilling techniques

are

adding to

profitability. Particularly signifi¬

The

Pillsbury Company

cant, advanced refinery techniques
permitting further up-grading

are

of

the crude

turn is creating

4%% Promissory Notes due 1988

tions.
the

While

industry

barrel, which in

oil

higher net realiza¬
within

competition

continues

to

be

recent

been

appears

years

replaced

by

to

more

a

states¬

manship-like climate.
Refined
This financing has been arranged privately.

which

in

general

more

barrels

of

fact that

gasoline prices

Piper, Jaffray & Hopwood

*40 and

outlook

is

of

a

structure.
new

for

the




higher.

the

continua¬

better

The

increases

price
in

refinery construction and the

continued trend of

November 1, 1963.

are rang¬

relatively
small

small

refiners

acquisitions of

independent producers,

and

in

growth

de¬

for this
oil

crude

more

million

8.8

seven

barrels

the

over

ity of 11.3

Outlook

outlook

demand,

Abroad

abroad

noteworthy.

more

will

capac¬

million barrels.

Favorable
The

per

next

production

years,

rapidly approach estimated

pected

is

even

foreign

Free

running

now

marketers,

plus

the

projected annual increases in de¬

to

another
In

about

at

in

million

the

quired
This

barrels

more

than

the

next

reflect
not

be

way,

one

new

easy

of

re¬

nearly eoual to

production

or,

is equivalent to

million barrels per

production in each of

seven

on

day

per

crude oil production.

increment is

day of

the

over

totals about 8.5

all of current U. S.

put another

daily.

combined

world

free
years

new

barrels

the

words,

seven

million

conservatively

require

6.5

other

need

The

seven

conserva¬

necessary

Therefore,,

next

year ago,

tion

Goldman, Sachs & Co.

today

comparable

are

ing between

of

day

per

about

day.

but in total

a

even

production than the current rate

favorable in view of the

to those of
are

prices

product

estimates

the in¬

next

12.6 million barrels per day, is ex¬

providing net realizations

are

satisfy

trend.

question

country to provide for two million

in¬

have

the

mand, it will be

tense, the destructive price cutting
of

downward

through
To

the

on

12-year low and,

a
a

ex¬

drilling activity

,the future status of

operations in the Gulf of Mexico.
new

of

to reflect

fact that domestic

dustry

addition,

fear

the

fruition of the high-cost off-shore

In

the

having reached

pace,

dry

and

the

reflects

lower

costs

in

products

It may be well to ask the

hole

has

large

third-quarter
a

3.9%

and

third-quarter.

the
for

accelerated

gasoline

date

especially

an

for

in

climbed

to

year

demand

significance

upsurge

which

the

gain

particular

strong

spacing

drilled,

ago,

with, many esti¬

compares

is

wells

so

even

expectations.

rentals, fewer wells being drilled,
of

its

on

surpassed

wider

$12,500,000

likely
yearly

For the year to date, total demand

is

factor

have resulted in exten¬

programs

sive

85%

trend

cutting

various

the

current rate

notable

substantial
cost

only at

toward the 90%

progress

Another

cessful

refineries

were

approximately

at

in

ago,

years

indicated

the

SAN

10%

States, the indus¬

to

appears

re¬

crude

of capacity, the

now

try

shown

few

a

level.

to

growth trend and the statistics

years,

relationship

further

Form

of

loss

past six

in the United

the

Here

oppor¬

steady year-to-year improvement

E.

Gresham's Law has been neith¬

The American Experience

excellent

In the United

and

outlook

the

an

fact

the

8%

an

Drillings Down

in

significant feature existing today
is

show

E. Fourton

Leslie

industry.

finery

Alloway is conducting a securities

>

materialized.

not

-

which affect profits

in

■

has

to

U. S. A. Demand Up and

to

the

in

ment

'

v

tend

Total free foreign demand is

throughput.

business
Gresham's Law

.-7'7-

foreign
slacken

would

somewhat

any

providing

York Stock

every

States closed

for about two weeks.

•w^

be¬

are

negative factor.

a

does

appear

Over

'

"newcomers"

The expectations that free

a

deterioration

Exchange, in the research depart¬
ment.
"
< 7
a
;777"'>..a\7'

growth

growth.

is

the New

of

the

has

level

demand

recent

reflect

Orvj^TBrothers & Co.,

better

and

coming less of

The

Street, New York City,

demand

a

ing. The disruptions caused by the
so-called

of

Blinn has become asso¬

Bruce A.

at

favorable

Europe, ranging up to 15%
annually, appears to be continu¬

have

has been

'

distrusted

people
later

^

the great

expected

to

Joins Orvis Bros.

period, when

crash of the 1929-33

and

.w

was

running

than

past year,

selling

Ex¬

^

five

rate in

tunity for investment.

depression which lasted for

Abroad, European

profit- taking.

7

change.

treasury, the nation's

Stock

lists

wars
and a generally
price structure.

been

over

encountered

He

mand, should result in fewer price

of growth. Oil

era

stock

recently

Assistant

the, Midwest

have

have

market

Paul Brown Building, mem¬
of

bers

gold in

to

indus¬

the

of R. L. Warren Com¬

Treasurer

proportions.

about five years.

new

a

other

J. Deappointed Assist¬

and

Secretary

ant

appeared

trial groups in

gold reserve fell too low and we
had

year

last

which

7

.7'''

battling tre¬

out-performed

Mo.—Frank

LOUIS,

Lorme has been

gold for ex¬

reduction of

\ ;•

7'.; \
•'

relatively attractive.

problems, the oil indus¬

degree

money

obtain

' ,7

r

of

years

still

are

securities

R. L. Warren Officer
ST.

cashing

to

•

.

companies he favors for investment at this time.

entered

Treas¬

and

'

.

V/"'.'-

a

York

New

port reached serious
Due

this

1892 when the

the

in

market

out of

flow

to

This precipitated a rush

to hoard money,

minted, with milled or

inscribed edges. These

this

caused

country.

of

""•V*

1,890, the Silver Purchase Act

ex¬

in

is, demonstrated

law

•

V

five

and

try

Noel N.

are

President

market

mendous

in¬

urer;,

Other Crises

this

Officers

St.

Rothman,

the

7

Co., 300 West Wash¬

&

•

The Wall Street oil analyst concludes oils are
selling be-

hind

J-

After

Noel, N.

of

business

prices, and details funda-

benches.

has

the

unimportant matter of world-wide

placing the domestic petroleum industry in a healthy J
posture to the surprise of a good number who had relegated oils to !

:At>'7;;7

continue

>

years.

mental factors

crack-up

Robert; S. Prusin,
Viceor silver re¬
President; and Ralph A. Mantynserves. "Hence,
people
took
to
bank, Secretary. Mr. Prusin was
hoarding gold and silver coins.
formerly with Golkin, Divine &
In

The remarkable validity of

from

within the

corporation,

a

to

ington

not

-

Inc.,

Rothman

in

"Clipping" the Coin

•

"easy street,"

Corporation
N." Rothman

formed

Co.,

vestment

products of

press

than

"good"

\

greenbacks

War

1862. These

of

March

>

•

the experience

came

Civil

.

;

uable

so-called

&

been

seven

Supporting this sanguine fore¬
cast, Mr. Fourton outlines encouraging developments shaping the far

CHICAGO, 111.—Noel

point where silver

refers

the

Now

de¬

driven out of circulation and

was

prospects for the next

;

gold

its value

' The term "bad" money
backed by either gold
to money which is less val¬

money.

of

oil industry is back in the
trend club and gives every indication of favorable

exclusive growth

evi¬

increase

i;apid that

so

also

was

am

speed limits if a tragic
ifi to be avoided, a7a

the, workings

Law

the

when

was

people tend to hoard

"good money"

Gresham's

of
gen¬

California

in

gold

Law

most

and

of credit is

but it must be traveled

column.

Babson in today's

_7

Exceeding optimistic expectations, the

man¬

told hardship to the economy. The
use

used by Mr.'

most of the background history

Mo., supplied

City,
!

Unless

handle.

to

aged properly, it could cause un¬

/,

Educational Foundation, Scott

of the Magic Circle

who is Secretary

and

have built is becoming harder

face the danger of -j

and

Research, C. B. Richard & Co., New York City.

■

...

He warns we again

Law.

Gresham's

of

tions

7- '

' '

•

-

Thursday, November 7, 1963

.

Prospects For Oils

'f

•

do suffer any

we

fects

the "good"

out

,

'

'

.

full reserve of the metal), there

a

Are We Again

.

the

years.tWe should
fact

to find

that
a

new

it

will

Libya

or

the

in

Algeria

new

a

Number 6314

198

Volume

production is most likely to be
from
areas
of
known

of

Wheel Has Tufned

The

years;

should

It

higher rate

ahead. Therefore, the

The Commercial and Financial Chronicle

.

.

.

readily

be

foregoing that the petroleum

the

derived

reserves.

equivalent

current

industry is in a

with

industry,

oil

the

in

Growth

historically,

favorably

compares

other

of

achievements

the

Confidence in Government...

from

seen

being

to

/The Magic Key to Progress

of the

strongest industries in the United
in

back

since the sharp set¬

Ever

States,

A

uncertain as been improving and have resulted
critical in a rising return on invested
and yet most reassuring considera¬ capital,
improving profits, cash
tion is the probable future rela¬ income and dividends.
-Contrary
to1 general
impres¬
tive price structure, the pivotal
point : of
any
industry.
Many sions, oil securities,' while having
factors today, while they embody risen faster than other .industrials
ward

ahead. The most impor¬
tant factors tending to influence
the years

prices

world-wide

writer cites harm

ernment

are

as

1962. The oils

other

business

on

industry

in de¬
mand, estimated to range between
3 % and 4% domestically and 8 %
Continuing growth

Steadily declining excess
crude | oil production and refinery;

market

the

.

-

outlets

for

sought

volumes

limited

at

prices under terms be-

distressed

Pressure by The Organiza¬
P etrol e um Exporting

(3)
tion

of

reinstate¬

Countries (OPEC) for a

material

-na-

health

financial'stability in the

year

to be in

pear

earnings

in

such

i

c o m p a n

Amerada

time-

are:

(55),

t /"

address

(70),

;r ■"

labor

by

attack

the

Mr.

the

Will

dollar problem

shaky

span

a

public

confidence
the

heads

rate

who

of

with

responsibility

Now,

the outward flow of gold.
reckless spending and

staggering deficits be halted. Will

anti

as

bear

the

tion

or

bargaining
balance

is

trust

-

restraints.

price-fixing,

no

no

pressure

or

no

''equal

in

study

a

consider the union
concocted

as

by

posi¬

Congress.

Under the Clayton Act the union,

withholding billions of dollars of

is exempted from anti-trust

private

diction.

Under

plants, mills, factories and equip¬

Guardia

Act

ment.

from

capital

earmarked

the

west

the

top problems were

as

"Perhaps,"
determine

linked together,

are

for the upward

In

of unions.

power

the two

virtually

lose their jobs.

or

the

awesome

is

free

Under

the Wagner and Taft-Hartley Acts
frequently unions compel workers to join up

possible dire consequences of

way

it

juris¬

Norris-La-

Federal; injunction.

dustrialist,

a

the

coast, in the mid¬

dle west, and in the east,

mentioned

for

///;;

>

On

,

of

bound

is stoutly prohibited.

wages

rights,"

-

the

compulsion, conspiracy to depress

corpo¬

spending

of

The

true

ho

cartels,

no

the

must

in

monopoly

progress.

Management

chart

must

who

and

definitely

courage

is

There must be

deals,

But the constant chipping away
of

union,

retard

across

there

power.

trying minths.

diminishes

stake

a

ring. When business and

sit

table

gov¬

during

bought

the
to

the dollar's continued erosion, and

•

/ For example: Will the administration at long last resolutely

and stop

Fourton at the
Association of
Customers Brokers, New
York City, Oct. 22, 1963.
'
♦An

involved.

situations

national

.

'

into

and inter¬

ber of serious national

(45), Shell (45) and

Ethyl (70).

future

economic

clear focus is the disturbing num¬

for

Marathon

(73)

Royal Dutch

/>■ //■;■■/'/
What makes it most difficult to

bring- the

Among

favored

e s

.this

at

investment

;

defy

almost

that

analysis.

position to show /

a

increase

annual

18

future

imponderables

Standard Oil of New Jersey

low total cost, j-

probable

must be done even in the face of

/'

•

proaching the end of the period
when the rash of "newcomers" in

have

searching with singu¬

1964.

A number of oil.companies.ap¬

averaging 10% per year.

markets

and

relatively

still

and

an

oil

econ-.

yields. Oil shares, there¬ / This is no simple task. Yet it is
fore, are considered to be behind essential to forward planning and

capacity. The industry is also ap¬

foreign

and

average

attractive.

abroad.

10%

(2)

executives

are

tion's

averages.

basis which provide above-

a

of

omists

had

hollow

a

provided necessary confidence to bring about real progress.

multiples lar diligence for clues to the

price-earnings

at

ing

.

Improving Profitability

and

iii disrepute. The

after serious shock

most

well-in¬

phrase "collective bargaining" has

about

currently sell¬

are

who

Clearly

resulting from unbridled government spending and

Across the far reaches of the land

hurt

and

democracy.;,;

continues

He deplores Welfare

Those

rich

formed but again the small inves¬

per¬

managing of the economy in comparing the record of how sound

Moreover, oil securities are selling

(1)

taking place does not fizzle out.

now

the

not

con¬

Mr. Dies hopes that the march of

State trend and attempts to place private business

the lows of

securities from

other

below

follows:

servatism

point to¬ this year, actually have risen only
profitability in by about the same percentages as

improving

future

great body of voters is said to be fast attaining a broader

spective of good government.

problems,

troublesome

confidence.

were

our

the. most

outlook,

the

calls, and finally into the deepest

tors

By Edward Jerome Dies, Washington, D.C.

;

have

conditions

1958,

:

11

market crash since the 1929
panic.
Such is the powerful impact of
lost

position

one

industries. For those
to

(1807)

notching of wages

ditures

,

commented

in¬

one

Hoffa mould

"Jimmy

1964 capital expen¬

our

policy better than

our own

staff of experts."

and fringe benefits have enhanced

shown

government spending.

Boarman's

Patrick

Economist

in

being

is

Widespread ' interest

inflation, along with the unbridled

M.

"Union

book,

new

.

ment

pre-Suez prices.

of

:

>

(4) Awakening by the industry
fallacy about the benefits
from
the
incremental

the

to

Sehwabacher .Co..

barrel.

shift

The

(5)

pricing from an

com¬

world pricing,
tied to the U. S. Gulf, is set
Multiple

pleted.
not

terminals in

main export

at

geographical
established world

been ' virtually

has

price

in

to

ducing
Gulf,

North

and

Caribbean

the

pro¬

such as the Persian

areas

Africa.

have not fluctuated as much

years

refined

as

oil

product prices.

Producers,

(7)

stable

desire

all

companies

prices and thus are fundamentally
adverse

price

undue

exerting

to

pressures.'

countries

prices

are

world

against

oil

undercut
indigenous energy sources. Also,stable prices are needed in plan¬
ning
v

low/ enough

energy

to

Consumers wish an assured

(9)

regular supply.

(10) Oil consumption is at rela¬
fixed

tively

under major
la
long-term

prices,

and

contracts

on

basis, i.e., oil generally is not sold
in

small

quantities

are

as

commodities which may

;

other

be tied to

day-to-day price fluctuations.

(11)

mainly to

function

points

supply
assure

the Governments

producing countries that oil is

not

being undervalued. Any tem¬

porary

weakness in posted prices

merely notifies public buyers that

they

may

take advantage of tem¬

excessive

porary

inventories

to

acquire limited quantities.
pend for their income

on a

de¬

favor¬

stock

About

(13)

three-quarters

of

almost completelv

integrated vertically and the trend
is upward.

(14)

The

is

exoeeted

to have to raise about $225 billion
for

next

investment
15

vears.

in

oil

Tt

is.

over
>

the

therefore,

to accommodate

William

firm

Wall

14

from

its offices

has moved
Street

City

National

forth

set

Bank's

study, widely circulated in busi¬

ca's

dollar, today the dollar is worth

added 20

persons

staff.

the

York

bacher

In

has

effective

A

the

1,

a

but

correspondent,

-

Dec.

will

firm

clearings.

own

direct

Sehwa¬

through

operated

York

New

to the New

past

general

wire

San

from

Fran¬

cisco to the floor of the New York
Stock

For

seems

whole
solid

the

as

a

88

cents.

This

ticularly

"little

the

penalized

bonds, par¬

self-styled Liberals are for¬

senti¬

of

Tights

and

example, the

con¬

both

to

that

be

the

on

is

economy

rock and easily capable

expansion

an

over

worlds.
A

most prosperous
does

indeed

takers try to assess

condi-pulse

legislative dan¬

Of late they have been sur¬

gers.

ruption

.the

law/amendments

drug

came

of

by

caused

after

a

and

clearing

quarter century

discovery and progress in stamp¬

diminishing suf—'

ing out disease,

fering and saving.human life.

a sense

of doubt and misgiving.
It

and

shock

was

that

the

which

in

turn

slide

then

Public excitement over

stock

in

the

ridicu¬

"miracle" stocks; the

lously high

Drug Expose and the Public

confi¬

lost

off

touched

continued

into

tragedy

of Thalidomide,

delivery

clients, Mr.

office

of

Cahn

transfer

securities
said.

The

to

This is

not

an

-

•

offer of these securities for sale.
;

ties

in

Europe,

aided

Continued

margin

passage

of
29

the

The offer is made only by the Prospectus.
-.//:

;./•■ /

■

.V,

;:;■■■•

,/'/

■

v

(Limited Voting Power—Without Par

Value)

where Sehwabacher

offices, Mr. Cahn

reflects

firm

in

and

■

growth of California

and the West,

its

'/■;

:

180,000 Shares of Beneficial Interest

and

The larger New York operation

has

•;

.

new

house expanded
municipal bond
departments.
V;://:- / /
reflects

•

the

size,

said; It

growth

PROPERTIES

SHAKER

the

of

number of partners

account

executives,

the

ex¬

pansion of its investment banking
activities

of

and

its

municipal

department.

Price: $15.00 Per

Share

The New York office of Sehwa¬

bacher
with

&

deals

Co.,

institutional

plans

primarily

investors,

underway

are

and

expand

to

aspect of the firm's business.

Sehwabacher-has

had

These securities
has

York
year

office

since

old firm

has

1.930.

The

cities

Honolulu.

It

in

is

the
a

been

44-

not

being offered in

or

from the State of New York as no Prospectus

filed with the Department of Law of the

State of New York.

its headuarters

in San Francisco and offices in
other

are

New

a

West

member

principal securities and

'

of

16

and

all

Copies of the Prospectus

may

be obtained from the undersigned.

com¬

modity exchanges.

McDonald

Swartz in Providence

a

at

grove

from

Avenue.

R.

offices

I.—Arthur
securities
15

Elm-

November 4, 1963

&

the

sleep¬

on

will

also

reseach

,

a

ing pill linked to infant deformi¬

transfer

and

facilitate

will

1962.

legisla¬

brilliant, unparalleled research,

Exchange will provide fast

new

of

emotional

execution of orders for customers.
The

of dis¬
Federal

prised by the magnitude

tion

the

likely

economic

the

the

policies

collapse

ability to withstand shock

1964

the molders of

business spending

brought

Proof of this basic so¬

of

//•

fVv

in

decade in history

break,

lidity was impressively displayed

weighing

somewhat

erosion

give

market

period of time—but only
far more favorable politi¬

In

.

tions

The

'//,,•

...

.

dollar

12%

It

packed with arresting facts.

is

glittering

new

Re¬
Pol¬

icy Association in Washington.

for

people"

promising

under

the

the

for

ever

dence

in

has

holders of government

extended

cal skies.

"par"

as

Antitrust

and

Monopolies

straints" published by Labor

that if

It is shown

taken

whom

American

continued

is

horizon.

sampling

reveals

ment

but

channels.

lightning flashes

are

business

the

A

shape

the

threats

ing

of

to

of the future
plan accordingly the forego¬

and

on

striving

executives

To

glimpse

larger

Street, and

quarters at 25 Broad

business




First

of in¬

extent

1952

sensus

Swartz is engaging in

re-investment.

by

the

impressively

ness

shadows.

to

PROVIDENCE,

for

Jr.,

office, has announced.

paramount that the oil companies
erate the huge funds necessary

transfer

Calm,

M.

maintain adequate

prices to gen¬

and

bureaus,

is

Ameri¬
particular bone in the throat.

partner in charge of the New'York

the

industrv

the

of

one

clearing and stock

activities,

able price level.

the industry is

Co.,

-

York City office

this

countries

Producing

(12)

&

West, is expanding itsJMew

also

various

at

prices

Posted

world'

of

in the

operation

policies.

unchallenged.

spreading

Incidentally,
flation

creeping coercion; what of foreign

largest investment securities firms

handle its

>.;/ ■ ;//

■

Governments of consuming

(8)

Sehwabacher

has

and

consumers

go

of

power

raw

trade, and what of Cuba,

The

(6) Crude oil postings in recent

unions
of

What

V

■>

the

labor

derived

soundly over¬

the tax structure be

hauled.-Will

'

Company

page

The Commercial and Financial Chronicle
12

J

.

.

Thursday, November 7, 1963

(1808)
adopted and its effects evaluated,"
I

Banks

Future of Savings

In New York

they refer only to com¬

assume

State

should
of

such

During

banks.

mercial

accorded the. privilege

be

depositors

their

following

to

suburban locations and to occupy

Association of

s¥?<
By Charles W?Carson,* President, Savings Bunks
New York State, and President, The Community

Savings Bank

really

Committee

statement,

banks argues for competitive lib¬
eralization of branching, personal loan and deposit ceiling privileges.
Review shows New York savings banks supply more New York mort¬
gage loans than all three other major financial institutions combined
in New York State, and provide more than a third of student loans
in 30,000 loans since recently allowed to do so. Mr. Carson agrees
with and supports views of the New York State Bankers Association
calling for a vigorously competitive banking system in the State.
York State savings

Head of New

in

In

I

the

strongly

believe

"We

their

means

be

to

which

to

approach¬

achieve anything

To

is another area

must give attention.

we

Only 18 of the 50 states have mu¬

future

be,

may

If

to

do,

the

that the

past

15

population takes place in the suburbs.

and,

,

I

,

,,

If savings banks are to continue

the

to

state's economy

make

the

.

learn

to

years

greatest increase in. child

our

'

sub¬

a

have only

you

scrutinize your school tax bills

over

of

some

live in

you

determine

1 are

will
;

of

economy

the

contribution

that

they

case,

must

to

our

presently

is

cultivate

constituency of youth. $chool

Supplies Bulk of Mortgage to

a

sav¬

is

population of

mil¬

approximately»17.4

people. It takes

number of dwelling

prodigious

a

unitp to house

that many people.
commercial

our

Dwellings and

enterprises require

programs,

in which

now

At present the

lion

ings

York

New

state

their objective.

ing parity there

what
which

destiny.

achieve

to

way

one

goals

of

savings

what

projections.

urban area, as I

paper

some

which

the

to

and

forces

of this

outline

State,

would

savings -banks

for

to

make

trends

privi¬

ing system," further bfanch
seem

like

York

New

.

leges

remainder

contributions

banks

vigorously competitive bank¬

a

the

should

be still available. If this finally,

that may

York

of Rochester, New

convenient corners

the

of

few

a

They did it in Alaska, and

it could be done in other states.

a

banks

savings

the

moratorium

tude.

the major

factor, will grow

—not

the

in

center

city—but

outlying locations. Unless
additional
cannot

branch
this

meet

are

we

we

in

have

privileges,

we

challenge.'Fur-

thernidre, to look ahead to 1970,

family formation will jump as this
Who supplies it? New
New York
tual savings banks, and that 64 of capital/
generation of children reach- mar¬
support any moves on the part of
York State savings banks have in¬
State Bankers Association re¬
the. 100 United States Senators
riageable age.. Whether you like
state-chartered savings and loan
vested over 11.5 billion dollars in
have no savings bankers among
cently has submitted a report to
it or not, consumer credit has be¬
associations to be accorded the
mortgages' on properties
within come a
that
Association in which they
their constituents.
The idea of
part of the American way
same
privileges which are ex¬
the state.
This is more than the
state that their
of life. Only financial institutions
permissive federal charters • for
tended to mutual savings banks.

of the

committee

A

token we shall

By the same

one.

^

.

deliberations
bee

have

the

of

for

long

as

A

shall
them

that

means

port. '

Charles W. Carson

•

.

The report
of

this

chiefly

deals

Committee

with

questions of banking districts

and

mergers.

banks

can

from

creased

en¬

thusiastic sup¬

the'commercial

If

agree

mutual savings
in the State in¬

of

offices

banks'

give

our

During the same period

number

the
we

226

to

Their

than

ours.

selves, and if their program has
the

novo

support of the Banking pepartment, the attitude of the sav¬
ings banks will be an affirmative

recom¬

liberalization

"that

mends

of

de

branching should be delayed
after

until

the

liberalizing

proposed

mergers

-

policy

has

have

I

been

alone

Second:

Expansion

facilitated.

into

'

folding

privileges, there is
rather

alternative

permissive federal charters, I

hope that all state chartered
stitutions will

that 'We

it

can

directions.

both

be

may

chartered

to

in¬

strengthen their

so

have

of

period?

progress

Cumbersome

start

a

new

savings

mutual

us

not adopt

done

state in

our

that

brief

These
but

million

institutions

billion dollars

a

amount

their

is, still

During this

savings

will

banks

lot

a

depositors.

New

life

State.

re-invested
dividends.

and

of

it

re¬

banks to be
still

earn

more

Part of it is withdrawn

depositors

by

of

stream

Much

and

used

dents

to

pur¬

our economy.

banks done

State

Savings Banks Trust Company is wholly owned by the Mutual Savings
Banks in New York State and provides
loan

ity

them and their agencies liquidity, deposit-

banking, trust, investment, research and statistical services. As their liquid¬

agency,

sources

owners

have

of credit including capital markets.

436,000
1970.

Jamaica

Savings Bank
Jamaica, New York
JOHN

P.

BILLHARDT,

One

fices

Excelsior
New

The

GEORGE
of

Savings Bank

York,

ERNEST

-

G.

New

The

/,'

T. BOWERS, President
Rome Savings Bank

F.

WILLIAM

President
The Community Savings Bank
of Rochester, Rochester, N, Y.

Dry
New

CONWAY,

President

The

Long Island City Savings Bank
Long Island City, New York
.

New

MILLS,
York

for

I. DAVIDSON, President
Savings Bank
Tarrytown, New York

The

Savings

Y'ork

SANG,

Farmers

Bank

and

of

President
Mechanics'

the

City

STOLZ,

President

County Savings
Albany, New York

Bank

of

Lockport, Lockport, New York

V

made

Poughkeepsie Savings
Poughkeepsie, New York
CORNELIUS

C.

Bank

\AN PATTEN

President, The Binghamton
Savings Bank, Binghamton, N. Y.




of

progress^

our

nation than to lend

our

our

people

young

they seek the benefits

as

higher

of

education.

Meeting Tomorrow's Needs
As
ous

population grows it is obvi¬

that additional housing will be

essential.

that

Our

1,000,000

in

provided
1970.

best

estimate

is

units must be

new

New York

State by

The mortgage requirements

will

to about

amount

$14 billion:

Will the

savings banks which

provide

over

one-half

mortgage

State

be

in

money

to

able

now

the. resi¬
New

meet

this

challenge?
Let's take

look at

a

some

of the

At the end of Septem¬

prospects.

ber, 1963, the amount due deposi¬
tors

New-York

ih

gain

a

savings

State

billion.

$25.3

of

$8

the past seven years.

This

billion
Given

over

present trends, and assuming the

offices

bank

Wappinger Savings Bank
Wappingers Falls, New York
WILLIAM

J.

YATES,

President

The Bank for Savings

Ossining, New York

this

under

Sept.

on

been

the

We

feel

services made

our

understand

of Ossining

why

we

and

are

hard

should labor

branching lim¬

we

should

have

than

ceiling
the

denied

any

of

loans

as

Massachusetts, Connecticut and

BANKS TRUST COMPANY

states.

Growth

State's

Branching

May

I

seven

tion

York, N. Y.

now

with

ahead

years

of

our

Warrants

to

look

the

you

over

next

The popula¬
state in that year is

to 1970?

expected to be about 19.3 million
or

approximately two million

more

than at

crement

50%
age

it

will

is

be

present.

Of this in¬

estimated that over

children

of 18 years.

to

amount
seven

at

which

will

least $14 billion

under the

There are some

years.

VIf-

we

in

are

could continue to carry their full

of

share

residential

financing

in

have some left for

state and

investments.

other types of

Some Words of Caution

Lest

we

become too

optimistic,

however, let me inject some
of caution.

tirely

words

We cannot control en¬

who

destiny, and there
question whether

savings

banks are viable

our

those

mutual

and

Privilege

ask

me

close to

will be repayments on ex¬

mortgages

isting

our

savings banks are permitted to do
in

total

the

Added to deposit in¬

$38 billion.

a

privilege

personal

small

making

increase of $12.5 bil¬

alive to
our
opportunities,
it looks as
of
to though the mutual savings banks

substantial

ecohomy

an

bringing

lion,

savings bank state, and why

are

we

why

deposit

other

the

to

restrictive

lower

a

This makes it

State.

itations,

record and

have made,

we

it seems reasonable to ex¬

produce

creases

contribution

under

people

that

.

proud of

are

that

excellent

an

fact

want savings banks

available.

adequate branching

of

provision
powers,

deposit in 351,000 pect that the next seven years will

on

of

example

law,

new

1963, they had

30,

This is also

accounts.

KENNETH VAN VOORHIS, President

New

the

to

state and

are

200 Park Avenue

in
can

Forty-four

other

SAVINGS

from

go

804.000

have

our

BALTUS B. VAN KLEECK, President

•>'

to

year

to

Banking Law of 1960.

continuing to make,

J. SWIFT, President
County Savings Bank
Buffalo, New York

Savings

New York

J.

FREDERICK

WILLIAM H. HARDER, President
Buffalo Savings Bank

W.

City and

The

President,

Bank

SCHWULST, Chairman of
the Board, The Bowery Savings
Bank, New York, New York

Erie

President

PIERCE, President
Harlem Savings Bank
New York, New York

Westchester County

New

S.

New York,
EDWARD

ARTHUR

Buffalo,

LYON,

B.

HARLAN
/

Dock Savings Bank
York, New York

ALFRED
J.

LEWIS, President

A.

EARL

FREDERICK

Savings Bank
York

Savings Bank
Fulton, New York

CHARLES W. CARSON,

JAMES

New

President"

Fulton

York

New

KAISER,
Williamsburgh

RAMON

GEORGE

The

Brooklyn, Brooklyn, N. Y.

A.

Brooklyn,

Rosly.n, New York

Rome,

the

JOSEPH

President

Savings Bank

JOHNSON, Chairman
Board, The Dime Savings

Bank of

York

BLAICH,

Roslyn

SCHNEIDER, JR., President
Roosevelt
Savings
Bank of
the
City of New York, Brooklyn, N. Y.

C.

rise

greater contribution

was
development of branch of-: banks
authorized by the. Omnibus represents

is the

established

ADAM

President
Trust Company

the best examples

of

$457 million

IHLEFELD,

Savings Banks
New York, New York

President

No

to

will

number

last

,

DIRECTORS
AUGUST

ADIKES, President

will take advan¬

opportunities offered

new

them?

and

JOHN

the

dents,

be

expected

savings

it is the instrumentality through which its savings bank

to outside

access

tage of

demon¬

to

the

1970

Including part-time stu¬

'

York

strate that they

By

402,000.

dential

New

state.

is

York

in

the

in

chase goods and services, thus im¬

have savings

In 1962, there

number

mediately benefiting
What

to

made

246,000 full-time college stu¬

were

to

Credited to 11,-

economic

York

savings banks.

by

that

pay

000,000 accounts, this money feeds
the

been

has

1963,

year,

interest-dividends

in

-

Reference

assistance to

days of superlatives,

are

of money.
our

bank,

a

in the state.*

in

state

total of $64.7

mains in the savings

the

the

for

30,000 loans

over

made by all financial

as

defeatist atti-

a

op¬

At Sept. 30,,1963, savings

banks had made

into

let

they

third of the

tents.

our

the

portunity to make student loans.
What

doors.

the volume of student loans made

recently

had

banks

these potential customers to their

banks,

than1 totaling $23 million—more than

Although I am heartily in favor

status

savings

youth

,

Third: If state authorities refuse

commercial

Only, comparatively

s

be

State

i.e., savings and loan

life insurance companies.

have
..

non-

would

states

bank

savings

of

and

York

New

in

—

associations,

dual system.

a

another

branch record is more

combined

three

major financial institutions

not

year

twelve

a

over

opened by savings banks.

new

do

to expand our

period commercial banks opened
527 new offices compared with 93
new ones

among

This

319.

them¬ Whenr this * Committee

amoilg

in¬

State

for

banks

Savings

First:

1407 in 1950 to 1934

creased from
in 1962."

to that

stick

York

New

in

banks

s

they

principle,

New

state that "The number of
offices
of
insured
commercial

York

New

Stat e."

the

of

aspect

They

of

people

Association in pro¬ '.institutions

National

the

York
moting
the proposal
State Bankers' committee report
chief reasons:
should : have
special
attention.

econ¬

and

omy

the

York State and we have

Branching for Savings Banks
One

is best

"What
for

-

by

guided

total of such mortgage loans made
New
which can make personal loans to
supported by the three other major financial ybung married people can attract

savings banks originated in

n

own

dynamic institutions.

Last

Board
which

set

a

Banking

the

summer,

rescinded

the

ceiling

regulation

on

dividends paid by our

interest-

banks, and

placed the responsibility for de¬
cision directly in the hands of our
Boards
ate

of

the

Trustees.

confidence

Banking Board

We appreci¬

which

the

has in our judg-

ment, and I hope te**t our per-

Volume

Number

198

ther

liberalization such

istic

look

at

statutory

the

allocations to surplus.

w.ithin

areas

will

which

the

only

move

mendation from

Changing Banking Structure

I

recom¬

also

Trust

play

,

future.

our

Mutual

savings

banking in New York State is
child

of the

to the

ments to
„

■

.

into

.

benevolent

a

Well,

progress.

$28

over

50%

we're
total

billion;
the

of

our

in

big

with

economy

matter, howeVer.
the restrictions

/

banks

negative conviction

obstructing
any

the part of

on

legislators^ We shall be happy to
rest

our

"What

case

is

principle of

the

for

the people of

for

and

the

on

best

economy

New York

State."

Finally,

I

of my thesis.

factor in

agement.

motivated?

As

Dr.

in

out

man¬

much

past fifty
flexible

penetrating

,

to

structive

change

meeting

for

isn't

just due to the profit motive be¬
cause

savings

tions,

also

have been

nomenal

which
tion.

enterprising and oppor¬

are

I

We

one./

1920's

opportunity
down.

the

and

this

turned

we

careful

A

offered

for

fund

study has been

positors.

savings

served

the

equity

prices;

long

with

familiar

United

the

ondly,

William S. Renchard

trust

will find

you

Z

'

.

con¬

read

the

of
has

States

United

funds
been

inflow by a sub¬
stantial' margin/ This is referred
as

the

in

imbalance

an

inter¬

our

payments, and I believe

subject appropriate for this

a

receiving, but

wide attention it is

bearing

also because of the direct

it has

outlook for interest

the

on

the

of

because

only

not

Until the past few years,

studies

international

of

discussions

were

con¬

and

classrooms

in

the

and

professors

economists,

among

the

Central
John Q.

Public

of

staffs

in

bankers

and

busi¬

most

fact,

in

and,

nessmen

the

States, has probably never

heard

much

about

this

Yet

we

'Within

divided

wonderful

equally

are

our

ranks

own

entering

the desirability of

new

op¬

Within the next

seven

the

years

long term destiny of savings bank¬

ing

in

New York

determined.

sit

on

Are

will

State
we

content

distinguished

our

and watch its slow erosion

sufficiently

tivated
a

to

aroused

meet

the

to

as more

or are

and

of

explanation

"Savings

Banking in New York State:

Re-Examinaticn of

a

Traditional

Role,"

as

currency

in

the

York

17, N.

Avenue, New

Y.

*President

the plus side, and one of

on

principal concerns was what

to

about

do

address

delivered

the 70th~ Annual Fail Convention of
the! Savings
Banks Association of New
York State on board the S. S. Rotterdam
i

cririse

to

Nassau, Bahamas, Oct. 18,

1963.




of

the

Fort Knox.

in

But

of

dwindle

year

combined
the

12

of

and

away,

while
to

export
than
of

to

total

outflow

the

the

last

sult,
by

our

$8

claims

gold

billion,

against

goods

import,
factors

of

total

13

find

we

more

we

other

to

continued

produce

over

began

now

have

we

services

and

burden

to

statistics
if

I

less

or

the

an

a

has

excess

gold

and

inflow, in
As

fair

is

the

dollar

raids.

other

to

the

To

of

of

Governors

Reserve

discount rate from

3%

this

designed,

being

step

to 3^%,

term interest rates at such
to

same

a

level

discourage the withdrawal

foreign

from

of

short-

maintain

help

to

course,

the

in July,

Federal

the

this

short-term
the

the

Treasury

proposed

Equalization Tax

deposits

At about

country.

time,

nounced

to

restore

our

to

seems

bei

tax reduction

on

that

substantial

a

and

corporate

per¬

vitality and growth to
to

and

economy

provide

a

favorable climate for invest¬

more

ment in this country.

they

these steps have

Reserve System,

increased

next

Finally, the Ad-r

that,

supplement these efforts,

Board

Federal

basis
both

approxi¬
the

sonal income tax rates is required

Treas¬

say

in

cut

devices

our

the

on

the

been ingenious and highly effec¬
tive.

ex¬

foreign

at

over

now

relying heavily

These

among

billion

$1

ministration

so-called

for which

purposes

designed,

attract

12 to 18 months.

coun¬

between

it

to

our

on

the
an¬

Interest

However, there
have

are

doubts

grave

as

the steps so far taken by

will solve

ernment

American

The

tion, in

a

tain the desired

include

several

somewhat

the Gov¬

the problem.

Bankers

Associa¬

study, strongly

recent

additional

urges

who

many

to whether

measures

to

at¬

objectives. These
items

which

are

unpalatable politically,

including efforts to maintain wage
stability and strict control of Fed¬
eral

expenditures.

The

late

Per

Jacobsson, Managing Director of
the International Monetary Fund,
suggested that the most desirable
Continued

the flotation

on

24

page

be

may

to

present

in

you

few

a

bring out just what

contributed

the

it

but

I

with

you

capsule form

comments to

toward

bringing

present situation about, what

being

1

done

about^,it,f wfrat I

should be

the

on

done, and why

list

of

just about
Nation's

the

economic objectives.
international

Our

dilemma

this

of

of

during

boom
ket

in

in

an

unusual

in

attention

excitement

voked

payments

for

July

with mucjh of the

year,

type

in

came

amount

the

that

the

,

of

same

it

pro¬

speculative

London

October of

gold

1960.

mar¬

President

Kennedy and other high officials
of the Administration

ments

made state¬

actions

certain

took

and

fact

that

the

to

far

problem
been

acknowledge the

released

tute

from

to

prepared

Congressional
States

Joint

entitled

Balance

was

Insti¬
the

for

ahead.

This

very

eral

debate

While

on

there

of

ences

enlivened

and

quarterly period
ending December 31, 1963

in

MAIL THIS COUPON TODAY!
Dry Dock Savings Bank, 742 Lexington Avenue,
I enclose my

gen¬

the

to

well

as

should
in

their

be

bined

recent

in

0 Please deposit to my present account #

com¬

favorable trade balance

our

been

the

here

of

have

abroad

long-term

and

U.

penditures

S.

purposes- and

.Apt. No..

Address.

.Zone

City-

•

for

foreign

mentioned,

produced

ex¬

military

aid.

statistics

which

clearly that, over

a

State.

rtgilftrtd mail.

over

With

respect to the first factor I have
just

Delancey St. 0 Grand St.

—

investments

Government

abroad

>_

long-term

our

investments

foreign

0 Lex. Ave. 0 2nd Ave,.□ Ave. C 0 7th Ave. 0
Name

Cash ifcouId b, I,nl b)r

excess

■

in the office checked:

offset

to

years

v''

—

D lru1' Account for.

as

interpretation, it

principal factors which have

y'

I wish to have my account

presented,

quite obvious that the two

seems

checked below and send the passbook to me with free

0 Joint Account with

form

in which the balance of payments

statistics

a,

□ Individual Account

'■

as

savings account

postage-paid envelopes.

differ¬

strong

are

cc

New York 22, N. Y.

deposit of $.

Please open a

the

the whole subject.

opinion

*on balances of $25, or more

provoca¬

tive document has prompted much
comment

for the

United

Payments

1968," projecting the picture five
years

Anticipated
dividend increase

Economic

"The

of

it

before.

there

the Brookings

study

Committee

solved,
than

appear

time,

same

by

a

being
worse

was

made

the

About

capital

supply

gold

our

can

DRY DOCK

be

SAVINGS BANK

demonstrate

period of time,

private investments abroad

bring

back substantial returns which,

in

stock has declined

the

long

our

balance of payments. Govern-^

742

Lexington Avenue at 59th Street

518 Seventh Avenue at 38th St.

'

67 Avenue C at 5th St.

'

v

i\

-

/

111 Second Avenue at 7th St.

to

foreign

years.

at

,«"od

all

keeping

gold in the world from ending up

dollars

Carson's

for¬

our

our

in

State, 200 Park

world,

ally

combination

York

strongest

eign trade balance was tradition¬

New
•

more
extro¬

an

the

being

Melvin A. Eggers, Professor of Eco¬
nomics, Syracuse University, N. Y., pre¬
pared for Savings Banks Assoication of

by

been

than

accepted

each
1

A

sim¬

the dollar was generally

vert one,

that,

-

wish

inerest

States

United

always

introvert

an

is

this

of

The

has

economy

subject.

the

about

ple, enpygh.

mo¬

challenge

promising future?

be

record

aggressive forces take over,
we

The

of

field.

lot

has

balances

payments,

technical

in

not

system.

,

Banks of the world. Mr.

Equity

in¬

which served
rates.

and

cqnfidence
our

,

to

al¬

upon

No.

outflow

the

exceeding

is

be

can

its solution has become

recent months about

the

trend

international

believe

You have heard much and

from

Govern¬

question

strain

/V. is

/-*•—/.

^

International

of

Payments

that

big

monetary

has

observations,

fact

this

dollar

more

miscellaneous

much in

than

the

un¬

of

s o m e

/

long

the

do

of

Balance

other

Now

short-term

ternational

conclude

structive

of

an

then

I

securities, and

holdings

placing

a

which

States

and

banking. I will
with

United

manageable

changing
structure

as

of

in

is

faith

believe

mining

United

portunity.

I

for

as

sec-

and,

icit

in

this

International Monetary Fund, and

These claims,

deposits

of

the

and

mately

move¬

foreign central banks and the

ury,

lowed to continue without under¬

of

ings

of

eign

how

States

must

a

con¬

a

comprised of for¬

are

obligations

the future of American enterprise

recognize

taking

banks, foreign holding of United

ment.

of

has

not

know,

you

interest at this

who

who

out

to

also

designed

estimated

figure

a

the

of

out

Banks

worked

States Government

experience

Retirement

anyone

for

foreign

public

fined, for the most part, to meet¬

trend

anyone

the

College

Fund;

concentrate

to

ob¬

has

term

broad

a

de¬

banks

who

Anyone

banks

short-term

arrangements"

Central

has

program

measures

trade,

con¬

gradual reduction of net Federal

include

and to expand

area

action

to

open

expenditures of dollars abroad by

speculative

"swap

is

The Administra¬

involving

protection

measures

proposal, the desir¬

of which

tourists here, and to provide for a

of these have been

of funds

against

analyzing

port

has

mar¬

highly

a

designed to stem

program

of

become

promote the expansion of

payments

primarily, toward

to how far banks

as

time: first, the

it

of the possibilities of a mu¬

made

the,

atten¬

Legislature

were

is

to have wide¬

spread

national

seeking in the next

we

After

with our balance of payment

deposits result in gradual lowering of credit standards.

two areas which seem

on

paper,

the

cope

a

Most

and

try

against

approach towards the tax question; praises useful function

decided

I

mainly

it is

your

waging

My subject, Currency Trend in by $18 billion.

call

are

of

phe¬

,

to make personal loans. In

power

tual

enjoy

to

should

chastises commercial

He

Money and Banking,

couple of examples

a

must

session

the

to

growth.

There

f
v

associa¬

organizations,

mutual

enough

tunistic

loan

and

been

were

new

further that this

has

embraced

impor¬

Government

curtailment
: ments

the

our
on

designed

our

supplied by mutuals; and admonishes banks not to let competition

situations than savings banks.1 He

points out

to

of

whole

series of steps

the tide.

to

way

regard

a

of his fellow members

have

permitted to extend their geographic

their size.

and much

years

in

have

banks

alert

more

has

Eggers

his

commercial

more

is

years

they aroused and

or are

pointed

the

destiny

our

banks contented and

our

satisfied,

been

seven

crucial

greatest

The

the

as

With

for mutual savings banks.
we

payments def¬

Are the trustees and of¬

ficers of

study,

the

determining

the next

over

in

to

come

dollar

some

banking fraternity

suggesting how

balance

Management Quality

point

commercial

should be

have,

liberalizing legislation than to

This

siderable doubt.

the

of

embarked

that

on us

in

the

areas

annually.

recognition

problems,

to

necessary

being in the

13

foreign securities in this

tion's

adjust¬

proper

policies

difficulties, Mr. Renchard restate? his views

stimulate

been due more to the influence of
commercial

in

the

and

over

know;

placed

confidence

disagrees with the "cold war" that

branching privileges

of

interest-divi¬

We

our

of

Let's be candid about the

year.

the

Administration's Program

Mr. Renchard urges bringing

economic

he

dend payments of a billion dollars
a

and

billion

In

chahgirtg banking structure, Mr. Renchard readily makes clear that

residential .mortgage
we

monetary

balance of payments difficulties.

boys

provide

we

fiscal)

international

our

resources

in the state;

m oney

the

have

We

now;

interest

strong pressures prevailing.

play

$3

tance

requiring

rectify

origin, the legislators rightly have
felt

problems

strengthen

a

Legislature, and due

philanthropic nature of

ket.

far

ability

of

Company, New York City

Commercial banker tackles two

,

large part in the determination

of

of

by

controversial

By William S. Renchard,* President, Chemical Bank New York

'V
bodies

such returns

no

represent

largest deficit item, the net drain

And Balance of Payments

are

the Banking De¬

Governmental

hand, bring

these

as

in recent years

Legisla¬

on

partment.

a

(1809)

changes require

enabling legislation, but there
ture

The Commercial and Financial Chronicle

.

other

requirement for

realize that most

..

real¬

a

as

6314

and

it

the

have

a

re¬

increased

run,

provide

support

ment,expenditures abroad, on the

136

Delancey Street at Essex St.

Membfer Federal Deposit Insurance Corporation

*

•

465 Grand Street at Pitf St.

Assets exceed $745,000,000,

The Commercial and Financial Chronicle

Stifles
Banks' Growth

Unequal Treatment
Savings

what

banks'

time

founded

banks if
and

author spells out the reasons commer¬

able to challenge

sees

foresees a larger

preserve;

strength of the

ereat
r....

changed

to

technologies
its produc¬

of

It is com¬

ers.

boast

to

mon

strength

of the

of the Ameri¬
economy

can

reference

by

to its manifold

in

increase

output

(Gross

National
Product)

over

the years;

equally

products

list in detail old

'disappeared,

have

which

have

which

products
and

savings banks, like

com-

to

iron

in

changes

things.

recommendations

Melvin A. Eggers

new

are
,

assume

Often overlooked in

and

many

appeared, others, including the author, disof doing agree. Savings banks are increasingly willing to re-examine the
an accountindustry's role in the financial

system. This re-examination is
economy is the changing productcompelled not only by the savmix of the financial sector. Eco- in£s banks' need for adaptability,
nomic growth and rising standards but also by the relative decline in
of living have created an entirely their growth rate, and by grownew
market for the services
of ing trends
that would make it
financial
institutions—the
mass
even more difficult for savings
market of the average household, banks to compete. :
a
,
ing of the changed output of the

The

increasing complexity of

nomic

life

has

created

a

were

that savings and loan associations was

ways

/

household,

to encourage "thrift"—

interpreted as financial accumulation—and to "take care of" family

buggy-whips,

bankers,'

eco-

demand

'

_

Although

through,

if

app^bval

Congressional

chances

more

cial

community

major

and

The Past and ,tne rresent

itself,

intricate

their

and

equipment 'suppliers,

provided
old

involved

new

ways

has

of performing
'

tasks.

All

major financial

have

in

shared

this

.

institutions
process

of

N

KINGS HIGHWAY

cial affairs that the future held
great growth in the mass housebold market for financial services,
asked

he

household business. They

firms.'

That

he would have been wrong

points

with

deal

BROOKLYN, N.Y.

to predict which

might have replied, "They do
a

up

two

business

on

of

financing the construction

homes, filling a need on the
of iboth the building industry

part
and

the homebuyer. Like the savings
banks,, they were usually organized along "mutual" lines. There
was, however, a clear-cut differ¬

interesting

..

.

.

Martin A.

,

T

vom

Lehn

James E. Orr

J. Arthur Seidman

Alex. M. Stafford

Daniel T. Rowe

Harold W.

something

will

ers

This

the

up

ported to the House within three

sideration

accomplish¬

tacle of the Congress

next

of

months

six

year.

Virginia, Chair¬

Howard Smith of

Commit¬

of the House Rules

must

which

the

for

whatsoever

nothing

first

Civil

the

give

Rights bill clearance before it can

the House, will;

acted upon by

be

book

employ every tactic in the
and

that

some

prevent the bill from reaching
the House floor in November, He

undying

an

House

members

debate

and

bill

much

so

the; bill.

of

foe

They

talk.

by

in

limited

are

only .delay

can

the
can,

Commercial

banks

are

doing

stick closely to their

original pur-

oped some thrift-related business,
Some
sons

the

have argued that

opportunism
profit

has

been

institutions.

seeking

-

that they

There may be some truth in this

a

Continued

on

page

bill

modified

so-called

■The

Rav W. Kline

James

Comptroller

M.Daly

V

'

Marshall and Marshall




disorder

eral

26

passed.

bill

the

if

not

'A AA'':A

..":o'

■;

is

Senator Russell of Georgia,

in

the

number"

of

general debate and spe¬

cify whether the measure

would
this

opened to amendment. In

be

rule probably would

open

an

case

On such an impor¬
days ot

provided.

general debate might be

permit¬

long

as

THE DIME SAVINGS BANK

with the session to

expected the
that long.

opponents can filibuster

Edna O. Craig
''

Secretary

Re-Elect Col well

that

declared

if

Congress

passes

ANGELES, I Calif.

LOS

— Bundy
The Colwell
;statewide mortgage

Colweir, President of
Company,

the

been

has

bankers,

re-elected a

of

Governor

Mortgage

Bankers
of

America.

Mr. Colwell,
has

who

been

this bill it will be able to tell the

active

retail merchant how much he can

mortgage

what

will

he
be

Court

is

he

hours

has

keep

and

The bill

employ.

passed

r.

shall

under

the

Su¬

Con¬

decision that

right to legislate under

general welfare clause which
the
14th
amendment.
This

stretched

,

Deal

New

the

since

House

n

a

k i n g

industry since
he

when

1947

el

h

d

e

p

organize the
which

firm

name,

Bundy Colwell

his

bears

is

a

President,

past regional ViceExecutive Committee

and

member,

rules

that

provide

any

He

also

request

cational

Chairman Smith to call a hearing.
He would have three days to con¬

served

and

of the, MBA.
on

the

Edu¬

Legislative

Com¬

Company,

whose

mittees.

Louis I\ Marquart

has

Relations

Public

Committee Chairman

in.

■

b

the

in

and Auditor

OF WILLIAMSBURGH

§

Gov, of M. B. A.

informative speech recently,

very

came

Vice President

three

I. George Mitchell
Assistant Vice President

Main Office:,209 Havemever Street, Brooklyn 11, N.Y.
Merrick Oflice: 1757 Merrick Avenue, Merrick, L.I., N.Y.

Arthur O. Staats

could

members

The

Assistant Vice President

Bayside Ollice: 61-14 Springfield Blvd., Queens 64, N.Y.
Member Federal Deposit Insurance Corporation

he can stand on

it is not

year,

a

as

but,

feet

last

Senator can

body each

that

In

Association
a

amendment has been considerably

sider

Assistant Treasurer

COUNSEL

in the terms of race riots and gen¬

Albert W. Byrnes
,

Edmund G. I1 lowers.... Vice President

E. Holmes Marsteller

has

Rights

Civil

but

time,

war

the

Vice President

J. Arthur Seidman.....Vice President

Mortgage Officer

also

Bill

designate

hours for

his

gress

' >

'

Vice President and Treasurer

&

would

Rights

Civil

the

in clear-

Committee

Rules

The

ing

ponents of the measure than was

preme

.

John A. Peterson

.President

George R. Bennett..... Vice President

action.

talk

would

Joseph T. Sharkey
•'
Chairman of the Board

"The Bank of Service"

& Secretary

mittee

only slightly less offensive to op¬

whom

'

President

(.

to

member of the Rules Com¬
could call it up for House

any

is

charge for his commodities as well

;

Howard R. Wright

■

wepk

a

tant measure at least two

rea-

for commercial banks' greater

Alfred G. Ruelile

Howard R. Wright.

over

a

OFFICERS

OFFICERS

well

to

the rules resolution. If he
failed to do so within that time,
call up

ing amendments and talking five
minutes on each amendment.
In

.

George A. Arkwright

J. Warren Slattery

amount

be

as

William A. Lane

legislative days which can

seven

however, delay it some by offer¬

.
U-r
U •>. •• includes Fair Employment Prac¬
''Y--U^wo Areas 0 VrowJ? ;
tices
Commission which Mr.
Both the mutual organizations Roosevelt tried to get through in

Beery

Wesley A. Roche

re¬

,

faith. The latter were organized
because of a need felt on the asset
or lending side
of the, balance

changed

radically over the past 50 years.

are

Civil Rights Bill is

If the

days.

usually

they

cleared the Chairman would have

not in the book

are

to

is

—

Committee

public will have the spec¬

The

tee

A,v

Rules

votes to clear bills for House con¬

a

rights bill.

man

oppo¬

might prefer only

civil

put behind

is

it

pected,

ing

committee

the

When

that is, if as ex¬

before mid-1964

other

nents of the bill

passed morning meetings.

be

not

is in session. Chairman Smith and
several

that

likely,

very

will

bill

keep

to

tactics forever.

means,

tax

able

be

not

their delaying

in the origins of savings addition to this, they can demand ted. Discussion arid voting on
banks and savings and loan assy-, frequent quorum cklls arid demand amendments could require many
ciations. The first were organized reading of "every word in the' hours after that. Thus it will be
because of needs on the deposit journal? of the * preceding * day's seen that it will- be comparative¬
side of the balance sheet—a meed session.' This procedure, although ly easy for opponents of the meas¬
for a safe savings institution ^in irksome, can delay-the bill for; ure to keep it from the Senate un¬
which small depositors could have only a few days. > ?
V
til December.

observations:
has

re¬

ence

are

First,

TRUSTEES

signed

committees the Rules grpujS has
authority to meet while the House

time, because the Southern¬

that

institution would fulfill these de- poses, satisfying growth .needs made considerable progress since
mands, he might well have said along these restricted lines. iCom- then. Senators and Congressmen
"savings banks." These, he might mercial banks, on the other hand,y
and
President Kennedy meeting
have
told
you,
are
the people's have satisfied and exploited the
in
conference; several times
re¬
banks —the average
household's major new demands for additional
cently to work out plans to get
institutions.
If
you
• had
said, and expanded household financial;the bill moving have discussed,it
"What about commercial banks?", services,
and have even devel- :
not do

SAVINGS BANK

him

and

want to testify. Unlike most House

sheet—a

a

and

written

a

at

occur

need for an institution the original bill. Mainly it applies
financial services.
And
the
inFifty or a hundred years ago, if specializing in the financing of only to interstate commerce, small
genuity of members of the finan- y°u bad told a student of finan- home construction and purchase. ;T retail stores being exempted.
It

for

filing

the

But

it does.
that it will

are

.

obsolete.

Savings

BARCxERON

were

adapting to change—but to vary- savings by protecting them and
tnThis rGoort is con- investing
them prudently. Being degrees. This report is con- investing them prudently,
cerned with the one which ap- cause, of their essentially social
pears to have changed least, the service function, savings banks
mutual savings bank. Because of were organized as 'mutual
mstisavings banks' apparent lack of tutions.
Savings banks were not
adaptability, or inability to adapt businesses; they were more like
there are questions of the viabil- social service agencies. Like hosity of this institution as a distinc- pitals and churches, they attracted
tive type of financial .intermedi- leadership to their boards of trusary. There have been suggestions tees
by/. virtue of the fact that
that savings banks simply cease service was regarded as an honor
to
exist, selling their assets to and a duty.
,
other types of
institutions, and
Commercial banks were always
proposals of radical changes in profit-seeking organizations, and
savings banks, such as conversion remain so today, mostly (now), in
to joint-stock companies, perhaps the corporate form of organizato commercial banks. Both types tion.
The original emphasis of
of

it is

They

the financing of work¬

average

designed

.

Ameriic
can
free-enterprise economy is
its adaptability to change — to
changed needs of its buyers, and

One

the

for

flexibility.

suggested competitive

CARLISLE

BY

business-

'as

financing "goods in of Civil
Rights legislation seem¬ quest with the committee clerk.
process" and "goods in transit,"
In the event of a committee
ingly is not imminent, the odds
and as a by-product, creating the
are against the bill's Southern op¬
hearing, the committee conceiv¬
money with which the goods were
ponents. The Administration will ably could arrange to hear nu¬
ultimately to be purchased. They
undoubtedly £ have to spend six merous witnesses. The committee
only dealt with households as a
months; to secure its passage but ordinarily hears only members of
convenience to executives of firms
it is prepared to do this. The best Congress.
On
a
controversial
with which they did business.
complex bill such as this,
guess is that it will be next June and
Sayings banks, as institutions or
July
before i- the
bill
gets anywhere from 25 to 100 might

successfully savings banks
continuing role for savings
they are accorded the competitive flexibility they require,
no conflict arising between need for deposit security and

traditional

in characterizing

banks

capital,

ing

savings banks'
such re¬
invest¬
rate restrictions on demand

and removal of interest

on

would

finance

of

institutions.

serving

York

he finds handicapping

deposit accounts. The

cial banks have been

;

Thursday, November 7, 1963,

.

Ahead of the News

...

commercial

growth by according equally to all three major institutions
forms ass expanded branching privileges; enlarged portfolio
ment discretion;

the

demands,

new

been right

have

unfair, outmoded banking regulations for savings
declining role in our banking system. Dr. Eggers urges doing

with invidious obstacles

to

student

The

blames

Study

doing then. One

other didn't.

Eggers,* Professor of Economics and Chairman
the Department of Economics, Syracuse University,
Syracuse, New

or

.

FROM WASHINGTON

about

doing

are

they were

responded

By Dr. Melvin A.
of

banks

Savings

business.

diversified

and

wide

away

.

(1810)

14

calendar days

Thomas F. Lund. Jr.

ule

Assistant Treasurer
Frank J. Audino
Assistant Mortgage Ollicer

such-a

or

a

session.

failed

to

request

and

seven

thereafter to sched¬
If

do

then refused

he
so,

a

majority of

...

the committee

ing

on a

could force a meet¬

specific date and hour by

loan

Colwell
than

more

$707 million mortgage

portfolio ranks it among the

top three mortgage
in the

banking firms

nation, maintains mortgage

banking

services

throughout California.

and

offices

Volume

198

Number 6314

.

it.

The Current Climate

Savings Banking

'

Association

of New York State. New York City

the

mortgage and
funds

so

consumer credit needs

projected for the 1930's,

to

as

Currency

ing

one

wherein

money

of the traditional

money

be

management would

funds.- In "1962

Supervisprs having vir¬

and

chartering

of

7

:

How

cles

to

and

develop

ought to be
the

of
of

I

what

winds

constitute

feel

in

posture

our

portidn

view

y

which

a

The

dither and has
for

been

months.

12

Such
eral

a

gen¬

a

the

struggle

occurred

seldom

has

prosperity

and

controversies

me

are

all

of

tem

to

other

the

and

A.

for the

regulations,

chartering
withered

side

Willis

of

the

sys¬

away.

coin,

Robertson,

articulated

cently

strong

a

dual banking

re¬

brief

system in

a

con¬

speech to the Annual Convention

the relative roles of

of the National Association of Su¬

state and Federal authorities with

respect

banking

that
national in

made

be gradually

Senator

The first

of these concerns the current

be

charter

of

On

seems

signifi¬

particular

try of New York State.

over

the

in¬

financial community,

and that the state

Of the

raging, I

now

the

banks

terms

to the savings banks indus¬

troversy

affected

has

it has been suggested by some

peace

have selected three which it

cance

linging

believe has

for the overall community.
many

which

and

economy

of

areas

the

supervision

pervisors of State Banks.

and

Robertson.,

who

heads

Senator

banking.

the concerted drive

commercial

The second is
on

banks to

the part of

the

U.

on

in

savings deposits and the related

indeed,

are,

and

controversies
in

the

our

today

community.

must

whole

the
be

country

prescribed

that
for

State of New

own

Root,

has

York, Oren

expressed

genuine

a

But

concern

over

this conflict between

the three which f haye listed have

Federal

and

state authorities and

a

particular

immediate

the

signifi¬

confusion

which

results from

condition

con¬

day make it

banks to have*a

our

Savings

h i

in

h

c

over

we

led

to

to

continue

concentration

own

in

cost

recent

at

and

necessity,

by

with

very

the

pres¬

clined

from

1958 to

During the

ing of: the state side of the dual

cial banks'

7- from

The

alert

legislators.
tember

its

and

the 7 recent

At

Sep¬

hearings, before the Joint
Commitee

Legislative
the

State

our

to

Revise

Banking Law under the able

chairmanship of Senator Erriest I.

Hatfield,

number of

a

expressed

real

very

period,

legislators

concern

in

1958

increase
two

theless,

in 1963.

took

years.

commercial

proximately

in

the

recently

banks

16.6%

if

had

nently rising trend, it

is possible
interest

commercial

of

Aside

ings and' loan associations

look

ures,

Dur¬

ing this drive for savings, the

we

at

what

bank

wane

may

shaking
may

dollar

our

any

significance

barely

discussion at that meet-

Continued

•M'l'

on

jbl

»J

njIV

general resulting from this discus¬
reasonable to expect

seems

sympathetic appreciation of

the needs of state-chartered banks

including

mutual

savings

at the next session

ture.
is

be

case

that

of

necessary,

that

course,

effectively

in

stated

It is also to be hoped

these terms.

perhaps for the first time,

degree of cooperation

the

veloped .among

tion

it

is

first

time

In this

stated,

connec¬

presenting

feat of any

that

as

Mr,

for

the

commercial

the

positive

a

to the legislature.

of

major

community

hopeful to note,

Carson1' has

a

be de¬

can

three

financial

the

of

serving the state.

are

banks

of the legisla¬

/

It

banks

program

Unlike the de¬

legislation, the passage
must involve

the

of

needs

others,

and

rec¬

inter¬

and

in

the

form

some

of

For

compro¬

last

V

Savings Deposits

Alarmed

in

field

the

for

which

namely,

'

began
.

financial

of

they

were

short-term
banks

to

a

Fifth
f

'

,

r

Avenue
'

.

Beaver

at

Street




New

45th

Street,

New

Street,

'
at

York,

'

/

New
■'

New

N.

Y.

\

York,

N.

N.

Y.

•

10030
/

for
com¬

years

ago

seriously

the

Savings Bank

.

.

competition dur¬

ing the past several

Y.

loans

attracting of savings, deposits. The

/

10005

York,

few

consider

commercial bank
Street,

BOWERY

activity

organized,

working capital to business,
mercial

r

their inability to

over

maintain reasonable growth trends

*

10304

,

dividual

'

savings

the effects of

a

is

years
a

NEW

YORK

CITY

for in¬

reaction

to

post-World War II,

A

MUTUAL

INSTITUTION

.

development in corporate financ¬

ing. What
flow"

past
Member federal

Deposit Insurance Corporation

be called the "cash¬

may

revolution

15

years

has

ddring

.found

the

industrial

financial managers vying to dem¬
1 Charles

of

Savings

W.

Carson,

President-Elect

Banks
Association
of New
State, and President of the Com¬
munity Savings Bank of Rochester, N. Y.
York

\

does

this

analysis have for mutual savings

sav¬

i¥i£ and the climate of thinking in

more

as

deposit fig¬

banking system within its borders.

sion, it

com¬

be prone ,to

the state is losing control over the

From the

in

again

the past.

from

placency we

ap¬

individual

savings in New York State.

it has in

as

1961,

only

loan

that

past

as

per¬

Never¬

commercial

the

Most of this savings deposits

place

As

are

field is about to develop a perma¬

commer¬

approxi¬

to

These

that

7;

Wall

York

rising trend in the com¬

haps straws in the wind.

in

penetration has moved

14.7%

has mately 23% in 1963.

controversy,

present
to

-served

same

a

mercial loan field.

de¬

39.8%

of

estimated 36%

an

ervation and satisfactory function¬

system of banking.

high

a

found

sav¬

the

The Commercial Banks' Drive

30

periods

It is also true

mise, if it is to be successful.

Chartered IS29

and

embarrassment

some

of financial squeeze.

be

on

financing and which had

internal

additional

by but the percentage of such
ings in our institutions has

charter,

by

are

nature,

time,

analysis

/wSayinhs

.ex¬

the erosion

City, Commercial banks have

ests

THE SEAMEN'S BANK

when

month

corporations

concern

a

savings in the State of New York

ognition

$680,000,000

to

reported

state 7 and

between

of any program

Resources Now Exceed

vari¬

in

part

was

last

major

their

from

five, years

grow

banks

some

banks of service relations with banking
in dollars, institutions which had resulted

'■ 7

ily.

w

firms

to

and

widely

several

penetration by the savings
ceased to

in

savings

have continued to grow
market

available

industries

rather

and,

off

decline of cash-flow bal¬

a

that recently, except in New

areas

country."

The Superintendent of Banks of

violent

taking,: place

financial

the

of

parts

rule

one

other

many

sometimes

all

of

In part, this is due

leveling

ous

about

the dominant medium for personal

our

monstrably superior to all others

deposits

its course.
a

in¬

that

choice of alternative authoritative

one sys¬

The third

under

now
some

may

possible for

Currency

tem of bank organziation is so de¬

question of the quality of credit.
There

and

Committee, said that "No

revolves around interest rates

exciting

Banking

total

devel-/

and industry

indicate

to

ances

ago-and has been declining stead¬

legislation

S.

indi¬

obtain

vidual savings deposits.
area

Senate

The

eral

i

control of

banks?

evidence

some

seems

Although the pressed

banks

on

the expressed purpose of stream-

occurred before in a period

relative

Comp¬

community in recent months. For

history and I

our

in other

years

creasingly

Murphy

segments of the financial

community

never

Austin S.

the

among

various

the

of

Currency, James J.

trend which has been under way

for many

and

t

the

controversy af¬

is

cases,

banks have made substantial gains

savings deposits.

savings and loan asso¬

penetration.

run

to

branching, and

part to extensive

ar¬

in terms of relative mar¬

ternal business financing has

Since that

savings market.

and

which

penetration

time, and attributable in no small

in

deeply concerned

Saxon, have focused attention

reassess-

e n

activities

reported
troller of

over

of the

bank

savings banks of New York State
all state-chartered. While fed¬

present

rapid-fire and extensively-

t i o h a 1

are

history, i by

Conflict of

n a

savings

jurisdictions

Authority

genuine

commercial

or

for

this

does

mutual

Federal,
State-Federal

The

is

community

to

posture

for the next 12 months.

financial

of

must develop a

we

the

Today,

in

importaht

an

endorse

climate1 in which sideration

of the

/

us.

m

together'

and

year,

find ourselves and in terms of

we

..

change

blowing about

in

savings banks' expecta¬

to

during the coming

the

in

succeeded

oping in commerce

banks within with a strong assist from an in¬
advertising
program
and the oppor-v stitutional

Comptroller
banks.;'".

fect
tions

of

of

the

-

deposits—particularly the larger, profitable ones. ?cance

easing

has

There

appeal 'any designed to develop the concept of
branch applications approved by- a', "full service" bank, 'commercial
tunity to

implications of commercial banks' concerted drive to garner savings

climate of thought in banking cir¬

espe¬

of examinations

areas

their jurisdiction

under the Keogh Act. Discussion also

I would like to discuss the current

authority,

complete

cially in the

instead

takes note of relative roles of state and federal authorities, and

true dual system With

a

tually

ket

source

proposal Regulation Q greatly accelerated

Root

The

Board.

the

a

Thus, the commercial

ciations

growth stimulus and truned
as

unchanged

drive

banks

lost

banks

in¬

in such

resting the growth of both saving's

business

whole

the

of

the State

The

maintenance, to include small estates and

individual retirement programs

their

in

commercial

individual savings

serve

chang-,

as a

stressed,

picture,
to

envisages

improve and increase the variety of services they

The thrift role is envisioned, for example,

provide.

a

the

corporate

internal

of

percentage

and the

savings

1961.

since

share

15

stitutions has remained

result of the rapidly grow-' bank

a

own

individual

of

temporarily

report directly to the Federal Re¬

advisory is to allow savings banks to aggregate their

can

of

and

would also

arises. The Comptroller

Today's maelstrom of competitive banking requires rethinking sav¬
ings banks' course in the financial community. Dr. Murphy does
just that in calling for increased loanable assets to meat increased
economists'

As

financing

policies

held their

idle funds.

to

Board wherever

of

Comptroller

internal

of

out

ing

the

with

com¬

pany's expansion could be financed

having the right of

the

to

conflict

reporting

banks

the Board and

appeal

By Austin S. Murphy, Ph.D.,* Managing Director, Savings Batiks

supervi¬

50

the

with

state

of

sors

the

as

whole banking

for the

"General"

act

Board

Reserve

of their

onstrate how much

proposed that the Fed¬

He has

eral

community

For

(1811)

Commercial and Financial Chronicle

The

.

.

Member Federal Deposit Insurance Corporation

page

26

16

The Commercial and Financial Chronicle

(1812)

Production

Steel

Electric

last

Price

Except

1.6%

Production

Commodity Price Index

gain, there

the

week

in

economic activity—as 4%

of

somewhat

rose

< —

during

seasonally

than

more

September and preliminary indi¬

Office of

advance, the

further

a

Economics, U. S. .Depart¬

Business

of Commerce reported in its

ment

review

of

situation

business

the

monthly publication.

by

a

industry,

automobile

the

in

higl> rate of production

a

by

and

favorable response of consumers

1964 models. In addi¬

to the new

tion,

other important

two

ures

—

orders

new

meas¬

durable

for

,

.

less than

were

unfilled

Gain Since 1961

including

Industrial

continue

group

prices

as

show

to

little

the

total at

in

also occurred

those

annual rate of
was

been

affect

to

enough

numerous

prices

products

for

in

average,

$9 billion,

the second quarter; al¬
for
somewhat
higher

or

over

would

make

early
the

of

since
early 1961, when the present re¬
Most

in

of final

during the

quarter.

expenditures

overall

rose

of

ingots

castings since Jan.

and
of

total

a

(*113.5%)
the
tion

of

93,002,000

ing

nondurable goods and

on

tinue!

growth

services;

index

showed

rise

in

small

a

fixed

marked,

for

durable

of

high

a

dip.

The

investment

extending

was

producers'

to

durable equipment, nonresidential
construction and residential build¬

ing. Federal outlays for goods and
services

little changed while

were

spending by State and local gov¬
ernments

spurted

following

a

small decline in the second quar¬

ter.

1962

flection of

ployment,

increases

some

in

hours

weekly

average

em¬

and pay rates, rose to a

seasonally

adjusted

of

billion

annual

in

rate

September,

$466V2

about

up

$1V2 billion from August and $21
billion

from

last

September. For

the third quarter as a whole, per¬
sonal

income
the

over

somewhat
in

the

sonal

increase

personal

•/

Although

bil¬

income

;

sales

declined

justment, it
was

appears

that the

'■

the

For Week

move¬

affected by special fac¬

a

dividend

Nov. 2

Coast

East

/ •'.Buffalo

Oct. 26

103

of

99

92

93

93
105

101

—

—_

__

/—

154

based

telegraphic

upon

from

the

of

week

ended

clearings

Saturday,

118

112

__——_„

Southern

L

91

___lie

for

all

cities

104.4

Industry
of

to

preliminary

totals

were

American

Tele-

of

being

corporations

earn

a

General Motors'

this

billion

the

above

than

More

ever

in

total

happens in so many cases where
hopes, and hopes alone, run to

a

pay-

in dividends

year

run

to

dollars

excessive levels.

alone

shares

of

stock-

this

G.M.

to

91.

above

But

^or c(dor television, and
struggling to get a firm foothold
*n
electronic data processing
field wifh the high attendant exPenses, it was not very highly re¬
Sarded- Radi° also was generally
listed a company in the entertainment business, through its , Na¬

year

the

at

even

Be

of

Year

for

Steel

Improved

Industry

improved

profit

Steel

well above the 4% line which

where

is

equities

become

com-

petitive with bank accounts.

tional

up

for

as

magazine

month

steelmakers

figures

show

gains

contractor

larSe

"By Any Other Name"
General Motors method of

.pre¬

of

Broadcasting Co.,

fense

contracts

one

steel

the

des-

many

the

over

confusing.
is 50

rate

or

for

de-

a

its

of

because

government

Its indicated quarterly

work. Somewhat obscured was its
standing as one of the nation's

the

leading electronics operations,

ignating its payments is somewhat

Nine

_

During that extended period
when RCA alone was carrying the

billion dollar
million

a

fre-

Patently, is still highly regarded
on ^.e basis of its good earnings
showing and wasn t stricken as

the only

102.8

dicted.

the corresponding week last year.
Our

when

holders will share in this largesse.

based on'
production
for

This year will wind

the

of

into
And

higher figure, the indicated yield

Profit

those

from

well

pour

dollars

unusual

with

mendations

-Qu'ency recently, was at one time a
sPdt candidate but it proved a disappointment in this regard since
no suc^ action was-taken. The
issue reacted pricewise but, ap-

the

shareholders.

distinction

runs

1963

clearings

weekly

0.1%

of

time

a

line.

production

weekly

industry,

down

hands

out

1957-59.

sible
were

at

,billion

a

that

//•'"/■

Radio Corp., which had popped
vari°us lists of recom-

have snapped back from below 58
♦Index
average

of

obtain

half

The
Total

United States for which it is pos¬
to

fact

/

picture

RCA

UP on

best

today

the

by

year-end payment will

will

107

26

of

is

is

Motors

The
■

that

101

Western

the

Oct.

operation

year,

the

for

that

General

illustrated

'

.

earlier in the year.

mammoth

The

/

issue.

the

$3

A 50-cent extra had

been declared

even

93

Louis

against

year

before.

year

108

advices

cities

chief

indicate

country,

this

staid

normally

for/this

usual

is

payment brought to $4 the

payout

than

has been bobbing up on more

But

year-end total.

American

152

109
104

St.

Chronicle,

the

by

the

88

__________

Cincinnati

/V

the $2

50-cent- pay-

indicated

the
in

but for new

financing that, will entaiL distributing valuable rights to the hold-

ers.
In/ any ; event,/ Telephone,
/which isn't always a fixture on
'
the lists of recommended issues
in- put out. by .the various brokerages,

.

#

ment

a

improvement

acu >dend

General Motor's habit is to

the

$35,156,392,861. Preliminary fig¬
compiled

sorted -to

less,; nance its expansion so the' shares
prihae are hot only candidates -for < divi-

•a

dividend

•

1Q«9

102

100

-

_____________

Detroit

2.2% below last week's total

were,

good

c*

•elude

has re¬
rights/ offering: to fi-

of years since Telephone

phone and General Motors share

Ending

District
North

They

week.

for

candidate

the

Ingot

.

Production

latest

the

in

year-ago

cents.

in

But

June

Even in bygone days when any
$34,397,521,141
against
$34,431,50-cent
"special" company even dabbling with elecf
quarter outlook is for modest im¬ designating a
960,007 for the same week in 1962.
payment. And the current decla- tronies was; automatically' vested
provement in sales and profits.
Our comparative summary for
Third quarter profit perform¬ ration, actually the 50-cent quart- with a mantle of "glamour," Radio
some of the principal money cen¬
ance
was
a
heartening change erly payment and $1.50 year-end, failed, to participate in the electers follows:
from the year ago pace. Steel re¬ was only called "a $2 dividend." tronic frenzy.
year

New

City

■'—%

4.5%

return

($120

sales

for

companies

1,239,000

—

3.6

representing

1,047,895

-

—

6.9

nation's

+

8.9

and

518,850

only

for Ninth Rise

Out of Past

Leaving

Output

Cu¬

Year's

11.3%

Above

'

2%

the

They

return

($48

Although

the

4.5%

is

return

slightly better than the industry's
annual

profit

margin

in

1962,

it

falls below the rate in nine other

Period's

According to data
the American Iron

stitute,
ended

production
Nov.

2

(*104.4%)
tons

the

in

tons

1,915,000

the

the

Oct.

26

return

the

ninth

in

7.8%

for

the

output

non-spectacular

sales.

of

profit

gain

improvement:
in

sales.

termined

is

in

nine

■

and

month

First,

Second,
highly

the

their

price

though

In

picture.

specify

,

that

.

wise,

the

exactly

did

well

as

This

out

stock

rate,
the

on

the

when

new

or

$2

on

and

present shares.
;

A. T.

So
that

far
are

the

&

Next?

T.

roster

of

was

the

processing work has been a drain
i

4

giants

candidates for good year-

end dividend action has

the expectation of making this
the largest profit section in
the company s 1,neup" t '
;The problems and competition
and instead of
contributing, to profits, ;its data

-

-

When

.

were formidable

v

-

processing.

...

/

a

.

annual

an

data

RCA entered the field it was with
AU

company

split

that enviable state is its

in

work

as

speculative

Chrysler's comeback

a

basis

;

to Ef/int° the is
field, RCA's gamble
this field
paying off.; Still

to get to

despite the indicated

payout.

doubled

'
'

t

on

was

annual basis. Price-

shares

those of G.M.

borne

shares

present

on an

faith in

Near

./.

by other makers of receiving sets

the

lower

Point

/With color television accepted,
how'they and a breakthrough being made

contrast, Chrysler's indicated
on

Turni

/

al-

quarterly

are

that is

only $1

cut

relief—which

to

paid.

are

de¬

a

only beginning to be registered
the profit

refuse

payments

successful

by many companies to

Third,

other companies around

are

also

that

voted

costs.
rise

was

Reasons

effort

'

fractional

of the last decade. In 1955,

In¬

week

1,944,000

against

as

ending week.

was

Steel

for

was

(*102.8%)

This

compiled by

and

years

There

rate

/

surprised its holders by

company

quarter,

third

-

the

of

production.
a

in

1962.

23

three-fourths

ingot

earned

Above Last

Weeks,

mil¬

2.9

1.5%

mulative

a

—

lion)

9.3% Ahead of Year million)

Steel Output

Week

the fourth

and

on

3.6

564,852

-

ported

—

1,478,808

1,435,844
1,194,000
975,523

Ago Week

Ten

1962

$19,240,538 $19,964,577

Boston
Kansas

period,

ago

(000s omitted)

1963

York—

Chicago.
Philadelphia

September, after seasonal ad¬

ment

of

a

for

more /or

was

universally regarded: as

above

a

$4% billion in the

retail

at

'"'Index of

'

•

Cleveland

dipped fractionally be¬

than

quarter.

113.7%,

(1957-59 = 100).

Youngstown

statement

1962

rate,

rising nearly $1

advanced about

in

billion

$5.3

quarter. With per¬

disposable

third

up

quarter

smaller

second
taxes

lion,

was

second

of

cu¬

faltered

^

Volume

Week's

clearings

Nov.2—

income, largely in re¬

produc¬

Chicago

Below

Week End.

Personal

total

tally

,■

con¬

outlays

continued at

goods, which
rate,

in

purchases

above

week's

last

7.';..'

Slightly

Dip

1962

3,

with

week's

113.5%

labor

'V•;

Motors,{ which

83,559,000 net tons. In the

comparison

excess

unit

1

tons

net

11.3%

which is
1-Nov.

Jan.

industry,

in

Clearings

Bank

ures

higher reflecting increased spend¬

something

date

for Elec-

down such as there was

.

topped the year-ago period with

several fac¬

•

.

week. /

year-ago

cumulative total

this

domestic

'

Bank

were

demand

Consumer

divi-

become

has

twice

payout

dend

shut-

whenever there is a holiday

;/• • - ,
output of

the
The

mulative

low

major categories

more

a

•

Sep¬

from

steadiness

costs.

increase

started.

covery

since it

ual dividend—A. T. & T.

split in 1958 and upped the

of

some

normal caution

due to the

was

produced

100.6

This

1962.

in

parative

summer

quarterly

for

above the 1,778,000 tons

in

100.8

persistence

capacity

advance 1%. It was the tenth suc¬

cessive

it

and

week

tiori,. had its easy .moments even
on
the
eve: of ./ a ; $2
year-end
tons) ending Aug/ 17. The latest
declaration.
statement week's output was 9.3 %
.,//// / •. • .v; -'///'/

foreign competition, and the com¬

months
the latest quarterly

the

this

show ragged

to

continued

Stocks

sections

Last week's output was 4.4 per¬ way to discount some of the year
dividend
news.
General
centage points above the 1957-59 did

Pittsburgh

in

prices

hoped

had

against

as

early July and

tors—the

and

100.8%

at

of

Ii/2%,

•

stood

comes

rate

lowance

October

stability

rise of $32 billion over the

a

industry

'

tember

year-ago

weeks-ago slip in production. The

number of in¬

a

dustries; price increases have not

$588 V2 billion. This

a

a

change, since price decreases have

seasonally adjusted

quarter gross national product put

rise
weeks, until the three

base

lead, 'zinc,

aluminum,

steel.

1957-59

of third

estimates

Then

advances

producers have ; put and

other than farm and food in

Successive-GNP Quarterly

24.

Aug.

weekly

-

commodity

Preliminary

the

May.-/ / •:/'

the
overall,
index.. The/ BLS
during weekly wholesale price index of

September.

eight

period's' average weekly outwas ^pproximatfely 11.6 %
raised
quotations ■/ on
larger:'than that for/ the year's
primary metals products, lowest
/ output ^ week ; t lr^jOQTO

further

goods and nonfarm housing starts
—both registered increases

Tenth

that

so

for

increased

first time since

and

orders,

new

orders

several

/

~

being stimulated

Total output is

-

.official

its

Business?

Current

—

manufacturers

goods

of t / Id recent-weeks

in the current October Survey

WALLACE STREETE

BY

uninter¬

,

October point to

cations in early

rate

year-ago

week's

13

an

was

perennial candiincrease,
vigorous upturn in the past sev¬ tion Day on Tuesday. A further Moreover, its present indicated
report a widespread pickup/in
eral weeks but will not be un¬ complicating factor was the inpayment of $3.60 is now well
new orders during September, re¬
in margin
requirements behind that of G.M. despite a
happy if the succeeding weeks crease
versing
a
decline
in
progress
market price for Telephone shares
make up any disappoihtment felt from 50% to 70%.
since mid-spring. Sales, about the
There was also a hint that the that runs well past that of G.M.
so far while living up to last quar¬
same
as
in the previous month,
market had already gone a long
ter bullish expectations.
/Moreover, it has been a couple
/'/■/
Durable

income and nonfarm

personal

employment

the

above

about in line with income changes.

broad measures

the

by

for July

output, marking an 8.7%

for

reflected

The Market... And You

mid-March,

in

ending

followed

The pace of

was

1963

Thursday, November 7,

.

rupted decline since May 25 until

Failures

Business

which

25,

equalled

1960.

Index

Food

Auto

TRADE and INDUSTRY

and

Trade

Retail

May

unequalled in the past two years
>r

Carloadings

The State of

ended

week

Output

.

.

only been

on

them.

The

drag

on

was figured at $1 a share,

earnings

in 1961,

^0 cents ip 1962 and perhaps 30
cents a share this year. |

The pattern does indicate that
company has made something
August some sales of general ly output since the
raised its payment but was some- of a turn in its profit picture with
2,077,000 tons
in order entry and ingot produc¬
merchandise
and
apparel stores of ingots and castings produced in
thing of a surprise since a stock data processing. Present projection.
'■:/.
that normally occur in September; the
July 13-ending week.
split or large stock payment had tions is that the losses will end
This
T'
November
will
be
a
seasonally adjusted August sales steady output, if it continues, is
strong been anticipated.
One still left next year and the work will start
tors.

An

early Labor Day pulled

weekly

advance

weeks, and

was

in

the

past

10

the highest week¬

For

the

rest

of the

scratched.

year,

Steel

Chrysler and

Motors

are on

to

General

the record and IBM

heard

the

predicts there will be little change

into

,

"

'

for both types of outlets were 3%

still

above

million

gives

July.
a

more

consumer

quarterly

accurate

buying at

quarter sales
1%

The

as

a

picture of

retail:

whole

from the second




data
third

were

up

quarter and

expected
ton

to

garner

a

year—highest

110

since

month

now

pumping

that

new

"

automakers

life into

the

are

steel

the 112.7 million tons in 1957. The

market. November steel shipments

1963 low of

are

in

the

the

1,742,000 tons occurred

week

ended

Aug.

high of 2,626,000

tons

17

and

in the

expected

instead

oL

to

equal

October's

trending downward
Continued

on

in

page 28

be

Telephone
in

a

from

whose

is

American

directors

meet

couple of weeks.

After having
est unchanged

compiled the longpayment in the in-

dustrial lineup—the classic $9 an-

to live

up

to the profit potential

originally envisioned,
Meanwhile, the heavy

the developmental work

costs of

are becompany's position in
the field solid—it is third largest

hind,

the

<1813)

in

processing work, and the
vastly improved. RCA is

data

outlook

intent

ahead,

forging

still

y

Bank

despite

George D. Woods, President of the

and

last decade,
* market

the,

in

features

spotlight. The shared, in fact, have
carved out a range of only a bit
stock

the

all

through
market gyrations of
points

four

than

Steel

Finance

1963,
of

Bank

New York

company
originally was
noted as a dairy operation special¬

poultry

and

izing in butter, egg

lines. It has made important prog¬

milk

rently,
for

and,

diversifying

in

ress

and

than

better

in

his

C.

Of free,"
Johnson

and
as

Assist¬

as

Director of the

Relations

Mr.

Dept.

from

graduated

Masters

Degree

From

named

Director.

1933

to

investment

Portfolio

quently with

Participations

cur¬

from

School

1941

Freres

&

the

in

he

banking,

Lazard

and

as

was

Mr. Johnson has been Manager of
Sales

was

States

Chairman of the Board
1960,

Harvard Business

City will be designated

York

Howard

located

United

Swarthmore College and received

Department

IFC

the

1932.

first

Co.

and

Morgan

in

was

with
subse¬

Stanley

&

which
to

Joint
to

1952

State

he

was

Staff.
in

Nations

of

the

War

served

of

From

the

Division

the

he

was

of

\

BOSTON,

of

of

where

Branch in Boston

the
1945

Bureau

Affairs

Laird & Co. Opens

II,
As¬

as

Secretary

of

Department

Chief

in the United

World

he

the

Chiefs

United

was

in

Navy

Mass.—Laird

Corporation

pany,

has

under the direction

Inter¬

8%

of

any

One

Ford
-

1952

since

Martin,
the

of

1950,

become

who

had

as

Dept.

I.

Shaw, Jr., formerly with

1

and

Standard

a

of Nov.

Vice-Chairman

John

has become associated with

member of the Board of Directors

Research

of

New

&

Morgan & Cie, S. A., in Paris.

Poor's

Corporation,

York

City.

promise in the fu¬

The

is

it

when

ago

year

a

ac¬

in Belgium.
management of the company
dairy firm

a

optimistic.

highly

took

It

a

couple of generations for the com-*

the half bil¬

pany's sales to reach
lion

but

level

management

pro¬

jection is to reach the billion line
in

only eight more

while the shares

below the 1961
than 20%

Mean¬

years.

are

well deflated

peak, in fact more

under that high.

[The views expressed in lh:s article
do

necessarily at

not

cide

those

with

They

presented

are

author

time coin¬

any

"Chronicle."

of the
as

those of the

only.]

Joseph E. Seagram
Buys Texas Pacific
Coal & Oil Co.
Edgar M. Bronfman, President of
Joseph

Seagram

E.

announced the

The first

telephone call ever made was a call for help as
spilled acid on his clothes: "Come
here, Mr. Watson, I want you!'

Inc.,

Sons,

&

acquisition,

Alexander Graham Bell

Nov.

on

1, of Texas Pacific Coal & Oil Co.,

Worth, for $60,579,443 cash,

Fort

subject

to

of $216,000,000.

payment

Ever since that fateful

production

reserved

a

have been

Carl M„

properties, totalling almost

1.4 million net acres in oil and gas

leases, will be operated by Frank¬
fort

tradition

■

The

Oil

will

A

instinct to

gram.

Co.,

subsidiary, which

a

its

change

Telephone

men

and women

and

save

Pacific Oil Co.

Here

Kenneth

E.

Installer-Repairman,

Ferguson,

En route to a repair

Newport News, Virginia.

Hayden, Stone

job, he

-

-

came

upon

burning house where a

a

lives many

the

times in

ciated

Hall

L.

are

some

recent

New

asso¬

Leonard

Stock

York

the

of

Exchange

corporate

house for blankets.

Bros.

bond

Mrs.

Dorothy

California.

took

small

Operator,

San

department,

New York Stock

appointed

Mrs. Crozier realized that traffic

mouth-to-mouth resus¬

gency

and

Rob¬

man

the department..--'

-

.




>

Gilman,

saw

under

it

an

the

He

blocked,

ministered

Communications

Driving to

overturned

car

Installer, Au¬

found

cleared

the
it,

child's

and

baby was

air

victim.'

The

man's

below

the

shoulder

arm

was

and

he

ad¬

mouth-to-mouth resuscitation. Then

department arrived and applied oxygen

help overcome shock.
.

assign¬

Cautioning

helped

passage

successfully

Service¬

and found a

bleeding profusely.
he

an

remove

almost

BELL TELEPHONE SYSTEM
Owned by more

sev-

*

ered

Station

breathing equipment on his radio monitor

strangling.
was

Gurtner,

.1

bystanders not to smoke,

seemed

in

shock.-CMr. Gilman applied a tourniquet and
;kept pressure on it until an ambulancearrived.

^

supervising partner of

J.

Bellwood, Illinois.

Daniel

hurried to the address, where a

to

ment, he

Exi*

Alan D.

Cohn Director of Research.
ert Bach is

wooden house collapsed.

burn, Washington. He heard a request for emer¬

the fire

man,

Co., 1 Chase Manhat¬

have

he

Franklin

stopped breath¬

a

heavy and time short. Over the telephone,

Charles

New York City, mem¬

the

Then

in the blazing living room. Min¬

under a couch

utes after he left, the

arrived. Doctors credit his life to her alertness.

Appoints Two

change,

children.

burning building and,

guided only by cries through the choking smoke,
and saved another child who was hiding

/

bers of

young

found

citation. The boy was breathing when firemen

Wertheim & Co.

tan Plaza,

Rushing to it, he helped a

into the

back

Mor-

He noticed a neighbor¬

frantic

from

had

son

she taught the mother

Wertheim &

three

rescue

Serviceman,

Supplies

Rafael,

call

a

After notifying both ambulance and fire

ing.

was

Crozier,

She

mother whose

Co.

&

Wrapped in wet blankets,

Jones,

as

formerly with Sutro

was

They were forced out by intense

Jhetwomen re-entered and rescued the woman.

trading department specializing in
convertible ' bonds and arbitrage.
Mr. Hall

room.

heat and smokq. Mr. Ferguson ran to a nearby

Street,

Broad

25

window, he and a policeman entered the

C.

house on fire.

ing

plunged

a

many ways.

gantown, West Virginia.

father

flaming

City, members of the

York

manager

become

or

hurricanes—

winners:

blind, bedridden woman lay helpless. Ripping

Hayden, Stone & Co.

with

Incorporated,
'New

has

or

years,

out

Frank

knowledge of first aid —an

the Bell System has awarded 1,896
medals to employees for courage, initiative and accomplish¬
ment—for being good neighbors both on the job and off it.
Over

fulfill a long tradition

Frank Hall With

of service —a

help —these keep operators at their posts in fire

flood—send linemen out to battle blizzards

to, Texas

name

evening in 1876, telephone people

responding to calls for help —and training to

supply it.

Loeb, Rhoades & Co., New York,
acted as financial advisor to Sea¬

,*/"
.J;

Equity

Associates, 37 Wall St.,

pansion into overseas markets. It
moved into the Common Market

quired

for¬

With Equity Research

been

Marketing

resigned

was

with the

Foundation.

George

Director

to

From

was

Beatrice Foods is its ex¬

picture

R

merly with Smith, Barney & Co.

Planning.

on

1955 Mr. Johnson

Detwiler

more.

bright

ture for

Robert

Adviser
to

Mr.

is not on its

poultry

and

menu

a

Detwiler.

while the butter business is down
to

Com¬

national Security Affairs and later

sales,

of

third

&

opened

branch office at 75 Federal Street

account

cream

a

"New

and

from

Johnson

1,

joined the

Corporation, first,

Stockholder

has

(IFC),

that, effective Nov.

Marketing

the

the

this year.

:j The

Corporation

announced

he

IFC, Mr. Johnson

ant to the

running through the

more

and

until

associated with

World Bank and the International

Beatrice

a

seldom

1955

strong record of growth

is

section

From

the

in

States

sistant

Of World Bank's.

food
Foods which,

item

mundane

Co. Mr. Johnson

during

1963.

New York Office

Food for Thought

A

Marketing Department since

joining the Bank and IFC in May

place in the field.

second

from

011

Rand

toppling, eventually, Sperry

in the

Johnson Director

17

than two million Americans

18

The Commercial and Financial Chronicle

(1814)

The Comptroller of

NEWS ABOUT

nounced

BANKS AND BANKERS
New Branches

New Officers, etc.

•

Revised Capitalizations

•

Bank

with

and

Black

H.

Keys
dents

of

Vice-Presi- elected

named

Jr. >are

*

*

Call-

Almeda

with

in-

an

*

.

>'■

*

U,

York

New

*

f

*

Co.,

Trust

American

The

This

Vice-President.

Senior

City,

N.

Mr.

Y.

Stone

Trust

he

most

recently

where

Company

Louis

elected

many years,

Assistant Vice-

as

A."

Cashier

Balassi, regional Vice-Presof

ident
White

County

The

Plains,

completion

the

organization

will

35

years

of

retired

as

tjie

after 52 years

31

Grove,

Mountain

Ballk_

Mr.

Missouri,

for business Nov.

opened

Hudson

K

r

the

.

Bank

ics

1910.

oft Brooklyn,
advanced

He

bookkeeper

N.

jthere and,

in

Y.

teller

to

in

Its officers

Robt. L. Tester;

are:

1918,

F.

Tester,

Cashier.

Mr.
•

•

The^^Comptroher of the Currency

inod

Balassi
•

+K

l-

w

llU!,t

v'"s

yUown;

j1".

lional

became Vice-President and Treas-

of

member

a

of

a new

Texas, with the title Peoples Na-

In the ensuing years, he

and

application to organize

an

Treasurer in that in

sbtution.

pre,iminary approval of

aSTin National Bank in Sulphur Springs,

ta®

Assistant

nounced

the

with
with

Board

of

Bank

Sulphur

initial
initial

an
an

ranitaiiyatinn

Washington

Irving

V

:

Triist

Co.

County

shareholders

TrushCo.^and MriBalassI

California,

operation of County Trust. He

became
in

The

placed m-charge of the Yonk- ,ratified

was

ers

.with

merged

regional

Vice-President

' /

handle

to

,

sponsors
and manages National
Securities Series of mutual funds,

Mr. Greenwald

stock

proposal

W.

assumed

the

Moulton

of Assistant

Clerk
at

Nov.

on

1

to

State

of

merge

of

Bank
were

profit

of

Ashuelot

The

Oct.

the

t

James

o

J.

Saxon

Oct.

on

'

31

preliminary approval of
application to organize a new
Bank

Westport,
port

in Connecticut, at

with

title,

Bank,

National

the

with

Westin-

an

of

H

Hartford

National

Bank

&

^nTMa^

Harley E. BrainaVd
Cooke, Vice-Presidents.
f

#

B

stock
or
Yu
an'nnn

each

of the

Mellon

Trust

Co.,

moted

.

.

,

The

Total

E.

Vice-President,

*

The
Vn
Va.

Bank
hnc
has

,

,

Harriman

&-Co., 59 Wali Street,

worth

Nov.

to

of

Mr. Blush has been with the
firmi since '1940 and is in'charge

v

this

of the

Se-

$10,000,000.

P. L

Peterson,

President of Security State Bank,
become

Vice-President

and

All staff members will

be retained and will automatically by

included

in The Bank

California's pension, medical,

of

and

programs.

will increase

'

~

the

Bank

of

Cali-

installations in Stanislaus County.
w

H.

ttii^

Ells-

Vice-President, effective

At present there are two branches
in Modesto and
in
Modesto and one in t?ivwhont
Riverbank,
all
of
which
were
acquired
nne

through merger with the Modesto

1.

The Farmers Bank of Nansemond,
Suffolk
v
^
.
—,
c

,

+

.

^

return

that

Va.,

merged

under

Mr

Gerrv

came

with

the

is

account

lv:%%Liry .mL wim
1955

in

ager

and

an

firm

lirm

Man-

the Investment Advisory

100,000

shares

1957.

in 1947 and is
in

came

<•

o

%

of

Bank

of

anP California stock. The profit shar-

title of Seaboard Citizens Na-

tional

Bunk/,




/

ing • Dlan.
Jan.

1.

was

^n0U£

an

Domestic

the

account

Banks

Manager

of

one

Dept.

Mr.

(),Keefo

has been

firm since 1947 and is

^

an account

effective

as

of

And the price of prod-

or not.
ucts

products
t

e r m

an account Manager
Foreign Investment Dept.

the

A§ maior

item of

i

are

-j-v.

p
*•

'

0r

had done

so

by 1962

,U.

Effective

Nov

iri

111

contracts

ire

^, ,label,
state
affalrs
°bg°poly and condemn
^-of-hand or to try to punlsb th°se who do not a§ree

14,

° "

&

™£ntal s0CIallsm-Least of all,
ls there any good likely to
come out of remedies centered

at

40

ren

Bishop, who

exchange
Rishon

will

in

•

a-

the years immedi

that

hours

steadilv

we

-

.

,

membership.
an

Bishop, Inc.

nffWr

nf

%

an

^irec^eo efforts to break up
the existing units of producinto manY small
which could
t hone to

effectively. Let

®

Edward
T.evin

^

ones
oner-

us remem-

beL tor one..tl"ng* that
enterprise which must
that

of

mnct

do

must

now

a"

carry

tnat most of

.,

simply

canno^ afford to close down
even

drastically

reduce

Ste"

nrt

be

must

earned

,

if

ruPfcy courts. This implies,
obviously, that no company,

of

f

flx

xi

t

the

we

have

possible

or

even normal in the time °f

carried,

and

I-.

of

of

in
m

can

any

the

products

New

Fron-

"administered

the
tne

be

that

sense
sense

set

producer

arbitrarily
or

any

set

producers. What in classi-

is supposed to

to the

unwillingness

prices is the

of

buyers

to

take goods at Prices that do
not

-•

to them to be right.

seem

is'now

in in

xmf.ct]v

or

set up and stick to

precisely the kind fix limits

competition

com¬

seemingly supposed

set

prices
of

no

producer

no

___

of producers could with

ease

any

that

means

and

group

by

x

that

-

They Could Not Do It
All this

nrices"
prices

,

course' true

to
no

so.

work

labor saving machinery in
large quantities.

SO

of nroduoers could well

erouD

do

arbitrarily—and
J

Prices

that workers do not work

o

any

concern

is ^ remain out of the bank-

bteaany snorienea

of

over

Ebo

y period it the <

?

shortenerl

at the rate that once they did,
have an inkling of what

be

w

? yer menially

j

re

Wall Adam Smith. In most indus-

acquire

control

governmental
„

outstanding

ately ahead. If, then,

of

govern"

T

"KT -V ^ dp not have and could not caj economics
±

Bishop

t e polltl-

e views o
® °r

a

^

well

:

®

crrpat
no maffer how large, can
***&** manipulate production as

•

T?p T^npTY|Pfl
111CU

ducers
i

vol-

fbprp

creases

.

relatively

of

;'ac^ory or oven disappear al^°§e^er. Overhead at least

wmcn Wlii require iurtner in-

T.

a

small number

f ^ mar^ms ar* not satlf

which will rpnnirp furthpr in

U 1S'

sense

the

Competition Still With Us

yp

^

a

by

d

n e

of
de.

ln

and

we

'

,

£he pric£s

rather

Qr

include

mo

*n *^3 and is

° ,,

— and that,
whether he plans it that way

Manager in the Investment Dept. labor costs have really come by some
Mr. Waters came with the firm
despite the installation tiersmen,
in the

large

.

,

.

pany

„

is

many

into

enter

The increase continues. What

Y
and

limlted.

ducer

overhead

„

.

other type

too

? ^1Ve
aR industry

,

invested

on

course,

If

with the firm have been

YorkPas[oc™eExchange, *'wilfte

°

new

,-u-.

,

far

"contributions "

vafi0us

member

;■» Mr. McElroy

Operation of the profit sharing formed with offices
tional

"

jg

wages

salaries.

1947

some

on

could be found

»«".««<>
Norfolk,

inf

,

do.

may

fnnrk'fnr tion

wav

purpose

is, of

IjlSilOP & O0. ±0

Jesse

,

i? funds lor

many

of the Securities Custody Dept.

cwrlfy State Bank are in excess Department.

Bank and Trust Co. in
'

Leighton K. Waters as Assistant
Managers in the New York office.

the number of Bank of California

Virginia, Richmond,

promoted

.

'
"
Uniary anO involuntary, we
Elbridge T. Gerry, Jr., Edmund find that the compensation of
G.McElroy, Joseph T. O'Keefe and employees rose 150% after

to

Jr.,

all' this

course,

f

no

A.

The banking firm of Brown Bros,

department,

pro-

*

1-mofhA

tm

HammanAppOintS the Publiccost

_

%

often

or

/. v

Pa.,

Hudson,

trust

&

Now, of

factors

Brown Bros.

.

Resources

dg

and

new

150% from 1947 to 1962.

was

Now

fornia's coast-wide system to 35
offices and will increase to six

Pittsburgh,

Robert

lVa

Li

The addition of the three offices

-

Bank

take the.

we

they stand, the rise

as

services.

ln

other fringe benefit

National

expenditures

57%. If

was

of

price changes,

in

or

stake, and the

elimination

through

'

30,000 Se-

,

Q+o,

'

The

of

shares

California

Manager,

i"" 1TrM»T.r*r^' "T\^

37,500

curity State shares.

will

itial capitalization of $450,000.

The

'

receive

^a"Ke7,
Shares for

an- -

nounced

National

25th.

will

Bank

Comptroller of the Currency
„

by

approved

was

of the Turlock bank

Security State Bank shareholders

The

the

increase

Phi'ladelphia

Bank,

Keene, N. II.

an

merger

Directors

National

After

mm-

a

appointment of William J. Blush,

on

the

to

New York City, has announced the

President and

the

the-Board

ad-

Qprvi-pp<!

sharing

and

shareholders

of

the

technology and to
increases

capital is only

members.

newly, created posts
to

in

Co., Inc., marketing consultants in

plans for Bank of California staff
Richard

of

abreast

the President of A. J..,Wood & put of all types of goods and

of

Bank

Also approved

option

keep

Assistant to except out of the current out-

was

.

of The

Security

Turlock.

1956.

ohnwc that ari iimi^nal

the

figures shows that an unusual
J™"1?1 °*
^ imPf0^

Francisco, * Calif

San

the

the

witH

...

of

to be paid a return on their
investment. There is of

as

t

1947,

examjnation

mar-

selling

doing

give
com¬

opportunity to shift into the

facilities.

press

its

is

production of

them

Directors.
In

thought to what his

funds for its acquirement had

with

of

capitalization

r

$500,000.

Springs,

these producers never to

XclclAltlca.

£jQSe

Prior to joining NS&RC,which

.•

James J- Saxon on °ct- 30 an"

organizing the Washing-

m

old
UJLU

well

relations.

•

1928,

fV

others

replacement

the country,

across

continuing

as

new

ves™ent naci to De paia lor,
anc^ those vwho put up the

dealers

Velma

and

of
Ui

unit
UilAt

a
^

-

unit of

a

the

or

of

cost

..

of independent investment

President

New York.

merce,

urer

Smith,

C.

company's

programs

group

joined the National Bank of Com
In

Philip

investment

keting

president; John R. Peterson, Vice-

and

„

the addition of

of

course, rep

additional

in actual outlays for

Vice-President,

i

x-

are restively
important
pro-

really

Burt°"J'Gree"wl,ld improved capital facilities

.

Balassi, joined the Mechan-

figure, of

.....

figures

Senior

■,

petitor

Cost

1962

position,

under

with

1

..

the

Lis

n

was even

of this sort from 1947

in

resMn^biUty'

National

This

resents the

lmum.

he will assume

Grove

Mountain

The

with

.

Mr.

j

•

.

Too much is at

keep cost

joined

1957

,

few

a

Green -

n'ew'

company to company. In most
.

year

a

rapid.

of the effect of

firm

1

page

269}
rlsen not far industries there

construction

new

vances

J.

Hudson0 lUver Region"" Y japhal of $150,000 and surplus of for developing and coordinating
g
$75,000.

TrusPs

of

to

by

y

wald

of service with the Bank.

mark

week.

this

Oct.

on

r

Mr.

..

Co.,

Trust

Y.,

N.

the

Michaely

J

Harry

n

m

President.

National

First

of

e

Continued from

more

n-

a

coun-

^

HHHRI facillties had to be installed

-

Simonson, Jr.,

been

has

in St. Louis, Mo.

Bank

Cashier
J.

H

Ruebling,

n

nounced

dent and Casher.

President.

S.

bee

Manufacturers

employed for

was

'

Trust

the

to

comes

from

Company
Hanover

'

'

120 Broadly
New at has
Y
City,

Barbour,
Jr.,
Executive VicePresident; Roy Strong, Vice-Pres-

Trust Co., Garden

Long Island

of

Vice-President

a

Public Relations of Nationali securities & Research Corporation,

F.

J.

are:

Wheeler, Chairman of the Board;
H. F. Ohlendorf, President; W;) L.

City

Garden

Stone of

H.

Charles

officers

Its

$200,000.

•

10~0

r

facilities

Burton; J. Grefenwald has been
appointed director of Dealer and

have

capital of $200,000 and surplus of
:

has been elected

will

Bank

National

,

trom 60% from 1947,

^Fpittips

-

.

West Memphis, Ark.

New

Benestad,

York elected Torleaf H.

Memphis,

West

in

Bank

tional

*

*

,

Additional

'1

Board of Directors of Bank Leumi
le-Israel,

i

*r

*ry had by

more

the The Merchants and Planters Bank, l>dt l UCPO. ±.\ aill^Q
West Memphis, Ark. opened for -p
y
p -pnnmiro 1 rl
business Nov. 1 as the First Na- ;£)• J . ,\jri fc/t/Il W CtlU.

joined

duction facilities in this

or

Ralph Friedman has joined the

been

Thursday, November 7, 1963

after the end of the ducers, and it would be folly
war. The increase in the cost of the worst kind for each of

itial capitalization of $1,500,000.

*

*

has

new

a

Vice-President of the Board of Bank Leumi le-Israel.

a

*

Friedman

Ralph

has

Baumann

.

As We See It

an¬

Marine National Exchange Bank,
Milwaukee, Wis. effective Nov. 1.

Trust Co. New

Bankers

Vnrk

y

F.

John

D.

Loren

31

title,

Bank,

.

Currency

Oct.

Almeda,

in

the

National

;; ~
Donald

the

on

preliminary approval of

National
fornia
First

•

Saxon

application to organize

an

Consolidations

J.

James

.

0f

days

gone

huver^

whn

no

more

by any
hrp

than
group

hnimH /in

thls da^ and time are piostly Ot buyers who Hre. bound jm
not exactly comparable from any way to take-goods

^hey

Volume

think

not

are

and

Number 6314

198

priced right—

few, producers

position

in

to. withstand

substantial

demand for their

the

in

goods mere¬

ly for the sake of what they
might

hope

be

to

larger

a

.The Commercial and Financial Chronicle

..

margin of profit.

over

v

about,

American

The

reported

study

things that do not exist,

and turn ,our

real

situation. For
is

little

or

thing there

one

competition,

no

"perfect," "pure"

fect," in the labor market in
Nor

large industries.

our

is there

mild

as

is

Ex¬

The

change

said

industry,

in

editorial

an

out

looked *forward

its

reactions

to

"care¬

concur

issue

with

instances,

"it

can

be

some

of

others."

In

Exchange

methods

for

complishing certain changes

the

may

Exchange

grew out

of' the

editorial

Study,

are

now

Stock

policy

has,

group

of

the

looks

opportunity

The

to

meeting

Drug
stressed

wished to discuss the SEC

reactions

emphasized,

conservative

that

it

p.m.,

the

recom¬

ers

quiet,

same

the

and

—

will

atmosphere that has

Walter

reaction to

a

care-

and

Poor's

so

au¬

been

energetically cultivating.

very

Nor is there
tion

that

today

there

indica¬

any

has

been

a

change of heart. The political

danger

of

of

change,

any

in this matter is be¬

course,

lieved too great to

appeal to

the Administration

or

opposition. Here

single

greatest

threat

price

thorities

istered

prices"

au¬

be

fiU

•

good

a

"admin¬
replaced

were

plain everyday

some

mon

the

troubled

now

would

thing if talk about
by

of
the

cause

which

are

It

about.

the

to

have the

we

com¬

sense.

Eaton

Mfg. Co.,

Buys Yale & Towne
The'transaction

by

Manufacturing
&

Towne

uled,

it

31,

Eaton
Yale

Chairman

Eaton,

was

sched¬

as

announced

was

of

Oct.

on

Virden,

dent

which

acquires

Manufacturing Co.

completed
C.

Co.

John

by

Presi¬

and

Gordon

and

Pat¬

PUERTO RICO NOW HAS

terson, President of Yale & Towne.
Yale & Towne's assets and busi¬
have

ness

Eaton,
Inc.

been

transferred

organized

newly

known

It

Yale

as

&

that

stated

was

to

/subsidiary

a

of

Towne,

the

25 TIMES AS MUCH ELECTRIC POWER

new

subsidiary is being directed by the
management

same

rected

the

former

Manufacturing

ant

acted

for

with

&

Co.

AS IN 1941!

di¬

Towne

Inc.,

financial

as

both

&

Co..

Loeb

Kuhn,

York,

that

team
Yale

firms

in

And the pace quickens!

New

consult¬

connection

transaction.

the

Power

under

now

To Admit Atwell
Gregory &
New

York

New

York

Nov-.

14

well
a

to

course,

Sons, 40 Wall Street,
Stock

Exchange,

admit

John

R.

partnership. Mr. Atwell is
of

the American

to

Authority in 1941. /^nd projects

today's capacity. All this has, of

contributed to the island's continuing industrial boom and the ris¬

Ohio

—

&

with

Company,

Fifth

and

Exchanges..




as

well

more
a

as

United States Federal income taxes.

They

are

attracting

more

private and institutional investors seeking good income compatible

high degree of security.

y

■

>/,'

GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO
Fiscal Agent for The Puerto Rico Water Resources
Authority

Third Bank Building, members of
York

as

Herbert'

Shaffer, Jr., has become associated
Harrison

agencies, such

The Puerto Rico Water Resources Authority, are exempt from State income

Stock

Joins Harrison

Stock

50%

Bonds of the Commonwealth of Puerto Rico and its various

taxes

CINCINNATI,

New

add

ing standard of living.,

and

the

will

since

on

At¬

Exchange.

with

construction

over

City, members of the

will

member

generating capacity in Puerto Rico has multiplied 25 times

creation of the Puerto Rico Water Resources

Gregory & Sons

Cincinnati

1311

Ponce De Leon Avenue

San Juan, Puerto Rico

/,

be

J.

/

Y

.

Rant,

Ralph

one

thorities have for years

the

educational

Outlook
on

Nov.

for
19

the
at

4

at 15 William Street. Speak¬

The

Washington

on

Industry

Customers

an

Dewey

Kolb,

III,

Paine, Webber, Jackson & Curtis;

characterized previous meetings.
"A reasoned

in¬

of

hold

.

"in

for

Meeting

Association

Brokers will

'

industry spokesmen have avoided
It

Hold

is

review

pointed out that

report.

light

more

Customers Brokers To

item-

Exchange

Exchange

mendations

top-of-the-head

provide

and

its reactions."
The

little

Special

When, this

the

produce

vestors."

spell out carefully and completely

the

:

will

Study
proposals which would affect the

to

may

its primary

as

thorough,

a

review

siuciy

19

noise," the Exchange said, "but it

V

Exchange)

planning

forward

weigh¬

stated.

The Exchange

the

stated:

iui

edi¬

The

newly appointed (American

of thb

ing the further recommendations,"

to

"A

inaction."

completed,

exchanges and other indus¬

hasty,
and

monthly

'disclosure'

proposed

try organizations
the

torial

for

Exchange.

early chapters
stock

ac¬

suggested."
Securities

hind

taken

by-item

"Having put their support be¬

legislation, which

with

the

_

its

Investor,

be

responsibility,

in

magazine.

it

Exchange said

take

The

scrutiny and evaluation," the Ex¬

the, securities

of

Special Study conclusions and

some

"Each demands close

however, "this stance should not

plainly and sim¬

monopoly

a

which

thing

a

oligopoly.

an

situation

ply

even

and

procedures.

American

expected to

be

of

most

special

own

Securities

"imper¬ said, "alternate

or

its

Exchange

fully and completely."

to

hundred specific recom¬

one

Special

said

spelling

the

two

mendations for changes in indus¬

Commission's

change

attention to the

difficulty in the current

Stock

on

the

of

Study

drop all this talk

us

nearly

try and SEC rules, regulations or

and

But let

report,

ill the writing, contains well

years

Study SEC Report
has

(1815)

Commission

Amer. S. E. to

any

very

reduction

.

45 Wall Street

/

New York 5, N.Y.

Goodbody
Shaw,

Corporation.

&

Standard

Co.;
'

&

The Commercial and Financial Chronicle

ing, choice of type face, or its

SECURITY SALESMAN'S

to have informed
of the securities busi¬

;NOT UD

JOHN

BY

out

work

SEC

the

and

for SEC Cooperation

is studying propo-

sals contained

in the recent SEC

report
makers

Law

Congress.

also giving this study

are

In

attention.

deserved

well

its

the

to

agreement that some

there will be

will be beneficial to the
country if they are carried

changes
entire

and
solidly in
favor of cooperation with the SEC
in studying methods of improving
its important functions upon jn American industry.; A clause
which the operation of this gov- like this just scares them almost
eminent
body
depends. Let us into reticence and hesitancy. In
investment

the

Today

out.

is

business

securities

firm of the N. Y. S:

primarily with better ways to
more
Securities to

public,

investing

there
the

is

re-

could

SEC

and

relatively

re&rt
eiiect.

,

tjA^li

ne

on

.

in

of

the first page

"These

securities

type

bold

not

But

will

or.

lllcinCing

$17*73

.

*

better in-

a

share. At the end of

a

1962, assets amounted to $361,365,654, equal to $15.42 a share.
^

reading of this

a

provide

T

insurance & Bank
nounces

income

and

back-

*

*

sight to what the modern-day in-

The Pillsbury Co. has announcea occupation,
the private..placementof $12,000,- ground.

V

Stock Fund

an-

that at Sept. 30 net assets

$3,518,109, or $7.53 a share,
against $2,122,840 of assets and
jn an accompanying summary $5.90 a share a year earlier,
work

of thjs newest
states; .- r

were

ICI

the

».'<♦>

..y >-

Investment Co

passed

upon

the

»

of America retiofts

to

universe today. However,

deem its preferred stock.
.
. .^ .

asked

in

you

issues to the

nancial plans today are generally

.

clause

redemption

selling

new

general public?

at

fury's' fiscal

AMav

the
year

y

'

agQg„

of

which

-

of this survey

-

bank

insurance,

dividual stocks

held

individual

representative
in

the

panies with combined net assets of

;

stocks bought and

most

the

penetrating study will spell out the issues
disfavor

or

by the

managers

fund

to be published in the Nov.

survey

'

'

';•*

continuing quarterly series
'

•

-

♦

-

on
;

'

of

;

>

.

of

V

view

justified

booklet-prospectus

questionnaires

replies

and

4,930
and

-

regular
3,210

from

stating:

in

THE

ac¬

COMMON

ac¬

ICI

"We

is

of

believe

the study accurate-?

of

investors

mutual fund

profile of
generally.'.'

GROUP SECURITIES, INC.

4

A

mutual

fund

.

for income and
'

1

The survey first was

Regular advertising rates will prevail
•/./.,

for

space

•»'/

oiir

in. this important issue.,

ner
man

The COMMERCIAL and FINANCIAL
.

..




t
v

"

'
L

25 -PARK

•

»•

PLACE, NEW

v;-.

.

YORK

f

,

-

attention

CHRONICLE
,

7, N. \\

just

"

"

'j

RECTOR 2-957(T

U/-IT.'/" I/i-

7 '... 7

•

'

Senator Barry

before
>

4i

was

j

^

judges
.

t

,

way

stocks selected for

quality.

<

"

jr

to

begin

his

.

t

■

ought

'

*

CPC
.

|

Gold-

r

•

.

Address

address.

City.

.State.

■

to

go

out

of their

j

^
-

common

their investment

Name

Speaking hurriedly, he said: "The
v *

'

stopped at our table after the "

water

"

^

^

pos¬

through seasoned

Mail this advertisement.

A fund-

magazine had awarded Oscars and
f-

investing

growth

sibilities

night last week /

Financial World.

of

■

\ U.

one

brought to

annual-reports-award din-„

the

at

.

26.3%,

the

this,

ly reflect the financial

-

.

describes

re¬

STOCK FUND
all

of

results

an-

free

the tabulations, were

from

holders

In

Fund

that at Sept. 30 net value

mutual

12

respectively.
-

14 issue
'/

nounces

holders

resent returns of 25.4% and

the subject.

J

and

cumulation plan holders, and rep¬

the

is another in our

./**-"■'■../-c/.

Life

anonymous.

inclusion in

gigantic fund industry in the third quarter of 1963.
The

-

were

received

which either met with favor

share.

$33,770,4$! and $13.44.

Massachusetts

12,221 accumula¬

Identical

count

This

in

Replies, sufficiently detailed for

17 billion dollars

over

were

a

were

and women

account

employed

ceived

com-

men

holders

plan

were

Sept. 30, 1963.

on

earlier," assets

the

prepared

regular

funds.

;

providing

were

funds and

tion

investors

participated

mailed to 31,631
of 11

89 mutual funds and closed-end investment

$13.62

$12.12 a year earlier and $14.67
June 36, 1963. Total net assets
*n
latest reporting peiiod
stood at $1,832,358,232, an all-time
;Qnarter-end high. Three months
■ eaflier, assets were $1,776,806,463.

sam-

a

of their stockholders. Ques-

—19,410

The November 14 issue of the CHRONICLE will contain

on

shareholders

fund

' by

tionnaires

by

of

country

survey

names

,

directly.

offer their shares through-

out 'the

QUARTERLY FUND SURVEY

sold

or

Massachusetts Investors Trust reports that at Sept. 30 net asset
value was $15.14 a share, against

S.

U.

Twenty-three ' funds

general.

»which

common

ures

of course, in-

is based

report

of

pie

comprehensive analysis of the

the

fund

of

accounts,

savings bonds and,

The

a

year
see-

analyzes

iFundj 5e?°,rt?

30 net assets totaled

A
$28,058,896, equal to $11.79 a share, and
at June 30, 1963, comparable fig¬

$34,309,433,

holders in relation to their owncrship of certain other assets:;Jife

ended

Will Be Published November 14

^oll,nSt,0!i
that at Sept.

y

;

classifications

different

25 398

1

y.

^

-

interesting

especiaHv

ment

Pills-

*

.

An

of $100.18

end

there''were

1963

31

price

a

At

share.

per

the fi-

larger than thev were five years

Do you believe this hedge clause shares of the $4 cumulative precould be improved as to word- ferred stock outstanding/
/ /

prospectus.

much broader shareholder

very

short-term borrowings and to re-*

'

,

$245,226,215, equal to $9.49 a share
31
1962
' .:. ... "sl/
at Dec

,

,

Pillsbufry to repay

an<* US

>

or

accuracy

this

of

adequacy

drance

Coin-

has the Commission

nor

ina&

wiu be added to working capital the balanced flnancttl planning
revealed in 1958 continuing in a

tu.

referred to is helpful or a hin-

been

Exchange

and

mission

\v\.

a

vestor is like—such things as age,

noil

a

Do vou believe the present

prospectus.

a

have

approved or disapproved by the
Securities

million.

17

ovTcnn CT

hers °*
business and asked
them several pertinent question^ Pillsbury has called all of its
such aS:
outstanding preferred stock for

they read a
I refer to the state-

appears

took

0

when

people' erect
that

than

more

,

.

w
and itJA or

of the

fear,

ignorance,

prospectus.

FriVSltG

regis-

Change It for the Better

to put into

trepidation that many uninformed

ment

3

Dreyfus Fund reports that at Sept.
30 ne^ assets totaled $478,047,708,

example, that

an

already

are

booklet

T71'

tv*

business

,

easy

of

as

.

It would help remove some
barriers

,<

„The flndings of the current re.
*
ne't aSsets
provides jobs and opportunity for the transaction.
'
port are somewhat similar to the were $285,284,764, or $10.69 per
abroad. This would all.
"
' Net proceeds from the financing results of the earlier survey, with share, compared with a total of

have to merAmerican securities

our

at home

learn,

total U. S. investor population of

[Pirn P] 11 SHUT V CO.
-L ily X
j
•

600 ,of its 4Vs/<? promiss y o
due 1988 Goldman, bachs & fo
New York, and Piper, Jafiiay &
American industry. Their capital Hopwood, Minneapolis, negotiated

help those of us who
chandise

.

...

,

^

point out that that these people buy millions of
definite step dollars worth of securities every
take that would year. They invest their money in

very

one

■

•

We

E."

.

tered representative. Whether this
is good or bad the true facts are

the

like to

spectfully

do

they

dis- with and their salesman oi

would

we

that

firm

the

column is concerned

tribute

'

$25 billion of purchasers to source 'TVip ^
business, ranging from
^
objectives,
FlTFirlQ TJpnrrH7
of investors' dollars.
X UllUo IVt^pUi U
there

improvement of stand one, and most of them do
the operations of both the Com- not want to take the time to study
mission and where the entire in- all the legalisms in these docu¬
lodaiicmc
dnmments. They rely almost 100 ft on
dustry is concerned.
this

,

million fund shareholders out of

operation, and in

Since

A.; ?;

"John Button is the pen name
of a registered representative
employed by a large member

the main, these people do not read
a prospectus, they cannot under-

that some substantial 'gains
made in understanding, in co-

hope
are

Comprehensive Study

of constructive propo-

wide range

,

proposals

respect to many of the

POTTER

Those industrious and able people "nfrfnity in the interest of all of us.
sals that are being made for im- at the Investment Company Insti- This study of the fund stockholdAny representation to the con- proved operations of our business tute have gone and done it again, er would have won the prize
trary is a criminal offense."
/in general. But I pass it along Back in 1958, they published a .hands down."
I am not an attorney, just a because it is one area that could
We second the motion, after
security salesman, for over 30 be explored without jjengthy hear>
, ^
„
T reading the study, and respectyears.
During .this time I have ings and too much effort; by the
f ,,
, .
^
.V.
fully inquire of the financial
talked with hundreds of men who Commission.
Surely with all the
s
community's
Financial
World:
are practical, honest, and devoted well informed legal talent avail_L.iri P hp' k f1 ea S an
e "Must a prophet remain without
members of our selling profession, able today, this clause could be
'
®
c a ar^e*
' honor in his own country?"
To a man they tell me that this rephrased so that it would still
The second edition has just
Mparm/hiio
+Uo
iqrq
' «
clause is a deterrent in selling inform without scaring some poor come off the press, a handsome
^an-wnue,_g| ,iaiw studj of
good securities to many unsophis- souls half to death when they are 53-page
booklet entitled "The
P™Dalc9n.flned
ticated investors. There are mil- considering an investment or a Mutual
Fund Shareholder, A
a s0^ew^at
r0J
lions of people who are unso- speculation that may involve more Comprehensive Study." It covers
y
phisticated. They want to invest or less normal business risks.
just .about every aspect of this snouia react u ror prom

invest-

the

time

present

business

A

not

is perhaps

suggestion

overpowering importance in the

of

With Our Business
the

C.

proposal for improving the

This

At

JOSEPH

BY

a

wording of this clause?

Some Additional Areas

FUNDS

Would you like

ness

CORNER

ment

Thursday, November 7, 1963

.

MUTUAL

position in the prospectus?

members

.

.

.

(1816)

20

'on these occasions to honor

a-

/.job. donel by the investment com- :

DISTRIBUTORS GROUP, 1 NO]
40 Pine Slree*, New

York 5, N..Y.

of

assets

$23.45

$101,223,894,

was

share'.

a

or

fig¬

Comparable

at the end of

ures

Number 6314

198

Volume

1962

were

$84,-

.

.

.

The Commercial and Financial Chronicle

honors

World

.During

Securities

Ayide

-

the

at

reports

of the fiscal year

end

Sept. 30 net assets were $54,-

on

789,957,

$22.08

or

share. This

per

compares

with

assets

$19.33

a

of

$42,110,953

end

and
the

of

Appointments

'share

previous

the

at

year.

head

Ballistic

Securilies

and

research

a

Sept. 30 net assets were $15,-

096,932,

$7.80

or

assets

of

share,

a

$13,037,555,

W.

Council in ballistics, and as a con¬

:]s

:l:

Energy

his-services

A

Shares

$9.81

or

Supervisor

$7.95

or

For

katchewan,

in

the

field

ballistics

for

the

of

ant

ter¬

will

General

This compares

received

Research
a

Committee,

in. charge

Alberta, with head¬

quarters in Calgary.

he

ceed

joint Army-Navy Cer¬

at

He will

J. C. Mayne who

suc¬

will retire

the end of February,

his

ST.

'

14,

S.

Dobson,
in

Supervisor

Ontario

York

District

(Western Division), has been

po¬

of

Supervisor

Branches,
the

with

Assistant

of

Department, Calgary.
will

and

his

assume

Stock

Manager's

duties

has

office
under

early

at

the

129

opened

West

management

L. Pierce.

the New York
.'.•■/.A'"

A,

'

'

'

'

'

assets of $59,-

share,

a

Stock Exchange

year

a

$72,044,453,

of

assets

1963.

•

-

helps people learn about stock

Southwestern Investors announces
.

; 8 ways

'

•

•.

the end of the fiscal year

that at

Sept. 30 net assets totaled $9,-

on

438,709,

$8.76

or

share, against

a

and $7.38 per

$7,107,003 of assets
share

a

year

earlier.

(VtANUfAeYUatXS COMPANY

<3(4.

.

mtrmsmm
Wisconsin

Fund

that

reports

at

Sept. 30 net assets were $21,524,472,
31

$19,379,038

against
1962,

-

end

of

the

at

$6.99

was

share

a

at

the

reporting period, compared

with $6.51

$6.02

z

••••

September, 1962. Net asset

value
latest

$17,883,898

and

/.

Dec.

on

before investing

at the end of 1962 and

earlier.

year

a

,

/'

a

Bleakney Dir.

:

-

Of Fund of Am.
Shareholders of Fund of America,

Inc.,

capital appreciation mutual

a

fund,

Dr.j. Walker

elected

have

Bleakney/Chairman of the Dept.
of

Physics

When

at

Princeton

University,
the

to

one

Booklets

invest it's wise to remember

and

Knowledge of how to buy stock, or

8 million

Presi¬
out

for

Benedick

for. What stocks and bonds may

you

do

announced

Knowledge like this can help make

Bene¬

also

a

proposal

•

of

in¬

v

Dr. Bleakney is well known for,
research

his

in

of

fields

various

many

different

Americans who invest know what

doing/And,to this
azines,

waves,

tering/- and .nuclear
The*

Shock

Wave

atomic
.

phenomena.

Laboratory

at

his

first
Tn

of

present. research
its

kind

in

the

country.

recognition of his work in this,

-field, he

was

elected,

in

-member of the National
of-

was

this

Sciences,

one -

a ;

Academy

of * the




1959,

highest-

'.

r

Here

scat¬

Princeton where he conducts much
of

broadcasters.
The visitors'

than 500,000
where

gallery: Last year more

people visited the Exchange

guides explain floor procedures

•

are

'

.

'

>•

ways

'

"

Member

You'll find

Firms

of the

your

a

*mace.-.
.

%

nearby Member Firm

■-

•

Exchange. They'll be glad to pro¬

you

with information about stocks

and bonds and how to

go about

investing.

Films

•/.

on

sorne

are some

York Stock
to

of the ways

the New

Exchange community works

help inform investors and people gen¬

erally—in their own interest and in the
national interest, which is best served by
a

knowledgeable public.

the;stock.market and invest-

ingrFrom 12 to 27 minutes

a
...

than, 700,000 copies have

been.provided-for.some 1-5,000 teachers.

,

These

by the Exchange in co-

tovteaeh-inyestirig. fundamentals. Since

,,

community:

helpful information just by

dropping in at
vide

in

a

;

...

.

operation^withiedqeators. Adaptations
-available from 5th grade through college

the Exchange
•

describing

the

Exchange provides and how it functions.

7 world
prepared

community helps people learn about in¬
vesting:

Exchange ad¬

vertising serves investors by

Teaching aids for schools: An aid cov;i

give valuable support.

eight

Educational advertising:

major

and exhibits.

cordially invited.

ering rhany facets of the investment

help

they're

broadcasting sta¬

f

are

right and wrong ways to invest, the
cautions to observe, what services the

vesting. No charge..

program many mag¬

newspapers,

in 96

Committees

A cities adult courses are available on in-

the Exchange,

ways

speakers. Through their Investment

Information

and its Member. Firms endeavor to

including mass spectros¬

copy,/shock

to

You

tions and schools

physics,

panel shows, as well as a

vide

..

,

state

corporation from Georgia to New

:V;

bet; pf a club or other local group?

half-hour

special woman's series/are available free

and show instructive films

In

••

Fund's

York.

to

Many Member Firms are glad to pro¬

Walker Bleakney

to

the

by the Ex¬

Speeches and lecture courses: Are you

a mem

informed investor. And the New
Stock Exchange believes all who

invest should be well-informed.

approved

change

distributed

ing from a series of 5-minute broadcasts,

York

shareholders
had

budget. More than

Public service

explaining how to invest, rang¬

you an

re¬

that

ported

were,

on a

programs

change anffits Member Firms last year.

and what they won't.

/

dick

Exchange works. Giving

ing how to invest

sell. What to look for and what to look

dent Walter

A Mr.

how the

Television and radio:

investing: Free booklets

basic records of hundreds of stocks. Tell¬

of

Directors,
FOA

on

describing investing, types of securities

thing as important as money

—knowledge.

Fund's

Board

you

there's

in

length—

in color. Documentaries, cartoons,

.comedy with -Hollywood stars. For

clubs, Schools,.churches

artdffor;TV

or

s'tationsA : '*

other groups,

Stock Exchange
Own your

a

branch

College Street

re-

•

Exr

GRANVILLE, Ohio—McDonald &

$llO,-

/ /A

400

S. Simpson.

$97,at

were

Nov,

Co.,

McDonald Branch

in

Mr. Dobson

new

Midwest

bert and William

in November.

1964.

&

Alberta

headquarters

General

Cook

changes/Will admit to partnership
Edward J. Steube, Benton S. Gab-

ap¬

sition

Mo.—Effective

Olive Street, members of the New

of

pointed to the newly-created

LOUIS,

Newhard,

share/ and

a

with

$9.73

or

and

new

/

$11 per share, at the middle of

or

T.

Admit Three

Edmonton

assume

Company
Defense

that at Sept. 30 net assets
$72,698,854, or $10.97 a share,

165,247,

Sas¬

Assist¬

become

Manager

of branches in

National

in

at

Newhard, Cook To

L.

an¬

Shareholders' Trust of Boston

earlier

in

present

at

Branches

of

will

C:

is

position in early December.

Branches

•Hyndman,

and

037,310, or $8.97 a share.

ports

appointments

Manager
He

of

with

share.

a

the end of 1962, assets were

were

has

Branch.

Regina,

that at Sept. 30 net assets

earlier, assets

year

543,373,

minal

A.

Navy

Army,

Saskatchewan,

21

*

$123,909,772,

were

Canada

number of executive

Canada.

Commission.

the

to

tificate of Merit.

American

Selected

$6.73 per

or

earlier.v

year

nounces

share, against

a

of

Bank
a

supervisory

western

that at the close of the fiscal year
on

Snyder,

scientist for the National Research

sultant

reports

Corp.

as

Royal

announced

Princeton

the

of

Project,

of

and Develop¬

Research

ment,

The

Supervisor

in

headquarters in

National Defense

Scientific
as

Branches

en¬

Committee, ^ Office

Research

Atomic

Peoples

he

II,

Appointed

Royal Bank

*

War

of the

divisions

that

an

upon

gaged in war work with different

844,431 and $21.83.

Nation

conferred

be

to

American scientist.

(1817)

share of American business

of

Harry
A/'/'

iwww/'Mfru mM>e,

,i..

22

The Commercial and Financial Chronicle

(1818;

mand

Areas

Four Investment

that

respectability

Continued from page 3

take losses? In
vein, some of the market let¬
I read say that the market
people to

telling
like
ters
i.

be

to

going

is

public becomes a

the

chef

and

you

We Forgetting

Are

the Public?

offering

Before

little amused by the

great new interest of our profes¬
sion in the so-called institutional

a Harvard
Business School graduate now has

and

machine

graph

department. But
serving the public

institutional
about

who put us
will

keep

in business—and who
us alive? Aren't they

consideration too? Of
course they are—and this is where
our industry comes in.
entitled

/

V

business.
It is a lot like show business in
the sense that you have to have
"heart"
in the sense that you
have to
tune your approach to
really is a great

is—probably has one of the best

to

Subject

suggest you

cart to the next town when
is on. There is a real

your

heat

pay-off for using a thinking mans
filter
in being creative, being
—

original

a

Thoreau'

leader,
most

quietj despera-

guard ourselves

failing for the

against this'human

unfortunately seems
to bring out the worst in human
nature. In thlis connection, I have
learned
three
things
over
the

that once
understand the nature of the
One is the fact

you

recovnize that
selection can be more important
than
timing—half the battle is
won.
The
long-term
investor
knows that all stocks do not make
their major high or low at the
same time.
At the 1962 low in the
beast

once

—

you

if they had
bought at their 1956 high.
profits

-

even

How would I

been

second

My
volves

apply this broadly

investment policy

cific

opinion

my

in

be

of interest re¬

area

have

which

in

fame

our

broad

four

today? In

interests should
areas—each of

a/ special

claim

to

today's environment.

Favors

Good Management

had

which

Each

mon.

things in

com¬

aggressive

man¬

three
had

agement with a dynamic top per¬
son
almost all represented
,

complexion

age

of our

population is having on the econ¬
omy.

If you were a member of a

local

school

you

board

10

ago,

years

in contact with an ex¬

were

groups.'

plosion in the 5-to-14 age

where

is taking

change

major

a

place now, for the present decade
will

see

well

time,
the

soaring young adult, as

a

population.

teen-age

as

change will

riages,

near,

very

more

mean

children

more

demand for

is

time

the

and

In

mar¬

and

big

a

homes, furniture and

mix

has already

Cadillac

resulted in staid

having

seats and

with bucket

cars

throaty sound to
V..

new

a

the exhausts.

.

-

..

the

which

companies

smaller
free

of management
gray

were

protocol and

industry

on

for

I

am

that

To put it
that

simply, it

into

come

to

seems

me

sales determinant has

new

a

being,

teen-agers

and

maximum

inasmuch

as

adults

young

of

consumers

are

goods

sure

all

we

recreation

and

important,

rich society.

cash

is

sumer

that
at

is

ours

affluent,

an

While the con¬

heavily

more

in

debt

before, his savings are

ever

record highs and

borrow' is

his ability to

better too.

To

the

me,

consecutive year

Oats

cdcktail
or

profits

should

Don't

mixes

and

(whose

stimulated

be

the

by

(pancakes,

Greyhound

crackers.)

sharply

of soft

consumers

Quaker

foods,

dog

today is big

World's

Fair).

forget Gillette, for the in¬
in the

crease

shaving age popula¬

for

this

companv

supberb job
black

body,

and

in

is

color

white.

Or

doing
well

as

Cluett

which I believe is

changed
Capital

Island and part of Queens

1950s and

The

early 1960s.

has

into

come

period
ized

almost

ability
from

10

character¬

within

history.

prosperity
Industrys'

years.

finance

to

is

its

the

Moreover,

another

—

be

can

the best rounded

as

in'

being

which

in

best

its'

in

replace¬

continuing

a

Which

durable

consumer

In

of interest?

areas

opinion, there

my

Boom

Has

Started

need which

growing consumer

could be exploited.

To illustrate the

point, I believe

American,.Motors was responsible
compact

brought the

car

boom—Revlon

cosmetic business to




oped, but Staten Island is sparsely
populated and should have a good
growth potential following com¬
pletion

are

great

a

goods

spending—the

minums such

West Virginia—the

such

Jones

as

&

chemicals

I

Dow,

as

Monsanto.

and

place the chemicals

cyclical

a

know that

is

catagory

that

that

feel

some

believe

the

I

it isn't

assured of automatic growth.
I

the

—

Amsted—

as

such

Alkali

reason

steels

Laughlin

equipments such

Diamond

in

chemicals,

But
a

as

group, are more reasonably priced
relation

in

whole

the

to

than

at

signs of

market

there

stability

the

industry's

a

time.
strong

are

price

been

as

recent

any

Furthermore,
has

revenues, commercial

trial

third

area

of

interest

volves around belief that

a

this

and

bugaboo

selling pripe of

age

dential

surprisingly large number of good
that haven't been

headline in

page

there is

that

good

a

each

of

have

not

the

finan¬

a

1963.

True,

for this in

reason

the

But

companies

did

claim

obvious

the

of'say,

speculation

to

in cycles—

almost be assured

that there will be
hit

industry.

auto

moves

I think you can

faces

new

the

on

1964—and the tor¬

parade in

toise sometimes out-runs the hare.

Thus, I suggest checking Babcock
&

Wilcox

—

Eaton

Manville—J.

Mfg.

—

Johns

Stevens—United

P.

Each company, in my

is

purposely have omitted
market considerations.

conclusive

signs of

near

with

familiar.

gestion

to

faith, and
this

which

All

I

can

One

was

the

defense

de-

among

still considerable

for growth;

54%

Boston

Oct.

address

1963.

we

all

are

is

acid

a

sug¬

have
tall

of

in

ours.

by

'

Mr.

Club,

/

Lurie

to

Boston,

•

Share
earnings in 1962 were
$1.99 compared with $1.65 in 1961
but would have have been only
erature.

Standard

Mass.,

The company

Pa.—Arthurs/ Le¬

strange & Co., 2 Gateway Center,
of' the

New

York

and

Stock

to

Exchanges,

admit

Walter

ply from
and

three

pipeline

Tennessee

maintains

first

half

cents)

showed

gain

a

President

but

partnership.

(the

of

21

has

Heyke

Earn¬

ings for, the 12 months ended Sep-,
$2.07

were

$1.88.

vs.

sup¬

systems,

Texas

Eastern

Gas; the company

high

some

btu-gas

been

aided

Moreover,
tion/: of

by

the

cold

cluding

to

amortiza¬

resulting

natural

profit

loss)

and

amounted' to

ments

growing by about 40,annually and are projected

are

000 mcf
at

520,000

winter.
will

use

(as

additional

through

storage

pipeline,

has been

pany

service

The

gas.

com¬

considering using

reserves of frozen gas

has, been

but nothing

/••

.

-In

the

determined

as

there has

been

an

upward trend in the price of gas
the
pipelines,
reflecting

higher field prices. Now, however,
FPC

has

ordered

rate

cuts

(i.e. cancellations of increases put
into

effect

received

ing

to

passed

earlier)

from

$2.4

and

along

to

amount¬

being

are

customers.

The

company's future cost of pipeline
gas will- be stable, and perhaps
less than
of

they

are now as a

result

settlements

with

five-year,

mora¬

negotiated

producers and

a

torium

cases.

rate

on

The company

million

of

construction

this

and probably about $18 to $19
million next year; over the next

five years total cost may approach

million.

issues

bond

This'program

and

bank

loans.

is
No

additional public

financing is an¬
ticipated before 1965. The present
capitalization
is 53%
debt, 7%
preferred

and

40%

common.

Nearly $8 million is cash may be
generated

internally

next

The

reached

company

a

in

by

Service

1962

by

resulting

settlement last May calling for an

and

wage
an

increase of $6

additional

$4

a

on

The

new

contract will cost (before

income taxes)

about $1.4

million

this year and $2.4 million in 1964.

flow

of

further

credit and the

York

New

Commission) 'and
tax

the

savings

of depreciation

use

Thus

liberal

book-

keeping and tax concessions have
partly

rapid

responsible

increase

$1.33 in

$2.25

1957 to

this

for

estimated
Standard

54

&

Poor's,

not

in

and

be

were

1962

the

by

total

substantially

year.

The /outlook

favorable

purposes

cents

might

larger this

$2-

tax

savings
depreciation ac¬

tax

at

the

from

estimated

The

from

counting

for

earnings

an

year.

resulting

saving

in

above

for

1964

seems

if cold weather

even

normal,

since

is

the

World's Fair should provide addi¬

tional

will

of

supply

the

Fair

The gas

operate

vilion

Gas."

has

the

all

gas

although

this

industry will build

a

called

beautiful
"The

Brooklyn

have HO'%

load

to

probably be low-profit busi¬

ness.

and

The company

revenue.

contracted

pa¬

Union

of

Gas

will

of the air-conditioning

the

at

gas

Festival

Fair

and

almost

cooking, water heating and

all

space

heating will be done by gas. Pres¬
ident Heyke states: "The World's
Fair load

will create

earnings,

but it will be

them

on

will

either.

provide

a

conditioning

important
be

the

no

We

bulge in
drag

no

believe

tremendous

it

kick-

industry in the air

market."

factor

contracts

for
to

A

more

1964-5

will

supply all of'

the gas needs for central air

con¬

ditioning heating and electric

gen¬

eration for two

new

huge housing
;

.

The company has been success¬

ful in recent years in its

convert

Brooklyn

campaign

homes from

other fuels to gas for heating. This
a

special conversion burner

program,

coupled

conditional

with

Satisfaction

an

Brooklyn

Union

Gas

has

been

selling recently around 41 fit; the
current

making

dividend

the

rate

yield

is

$1.32,

3.2 %>.

The

"Un¬

Guaran¬

tee," has been quite effective. Unit

'

investment

developments.

to

be

depreciation

the

from

guidelines.

year.

wage

year

$200,000.

use

accelerated

Public

needs

is spending about

for

about

by the

years

refunds

pipelines

million

only

required

been

past

from

the

recent

1964

increased

to

through for tax savings from the

558,000 mcf and in
be:

$3,134,000 in 1961 and

Also, earnings have benefitted in

Future peak-day capabil¬

will

at

next

time

firm

and

for

reduced

that

be

both

mcf

Capability

583,000.
ities

day require¬

(in¬

which

$1,810,000 in 1962 will this

Peak

from

gas

plants for .standby and peak-shav¬
purposes.

again

weather.

former

charges

conversion

have

year

ing

on

C.

esti¬

merely stated that 1963 should at

obtains its gas

Transcontinental,,

immediate

To Admit Partner

Servatius

Poor's

least equal last year if weather is

April 1, 1964 plus fringe benefits.

will

&

mates $2.25 for calendar 1963

Earnings this

the

,/

v

by

1967.

$1.80

being financed currently through

Arthurs,Lestrange

14

foreseen

of natural gas.

week

Nov.

is

customers

$100

business

Investment

30,

room

saturation

there is

about

all

see

immediate

two-

and

one

so

off for the gas
*An

Present

resi¬

top

will stand

wonderful

term

ex-,

are

adjusted automatically to the cost

year

Korea.

saturation

year

18.000.

to

major

have / courage,
you

Pittsburgh

since

aver¬

I> don't

a

—notwithstanding the
debits

reach

tember

$18

view—and I

broad

my

cailendar
to

family homes is 36%,

year

This

same,period

normal in the last quarter.

opinion, has

the promise of a better 1964.

In broad

has had two different cycles

The

gas

is

to

is firm)

Carr Fastener and Union Carbide.

members

our economy

price

yet.

goods spending boom has started.

perspective,

customers

the

and

My last grouping represents the

cial

Bridge

15%., indus¬

(of which 7%

definite

in recent years.

re- 'PITTSBURGH,
'

capital

12%

and miscellaneous 2%.

/

My

Verazzano

months

nine

the

Residential
sales
(including
heating) contribute about 71% of $1.86 if adjusted to normal temp¬

alu¬

Alcoa—the papers

as

such as

The

the

of

in 1965.

'

the

devel¬

first

over

and^tot&Fpew installations

the

pected

beneficiaries of the boom in

capital

rail

well

the

averages $1.48; the company pays
about 46 cents per mcf. Rates are

the

are

Brooklyn and

already

are

County.

spending

the

tions—should lead to

Brooklyn, Staten

served in

areas

Queens

Now, I believe the third phase

company.

Goods

in

financial page headline of the late

as

much

a

sales

gained 14%
of 1962,

a

Pea-

million, distrib¬

for

con¬

Cola—for /' teen¬

business—Pepsi

drinks.

these

American

talk

great

v

of

include

Telephone—for

are.

consumer

/

beneficiaries

The

agers

in

s e

of $110

revenues

utes natural gas to a population of

food,

Equally

recreation.

and

Brooklyn Union Gas, with annual

about 4,650,000 in

fame,

clothing

Brooklyn Union Gas Company

appliances,

service

a

spree.

remember

having

consumer,

need

was

expan¬

flannel suit mentality—

each foresaw a

for the

his

off

names

.

.

the

and

many

changing

I
tion this decade will.be twice as
have found that the outstanding
large as it was from 1950-1960;
success stories in the stock market
Don't forget Zenith Radio either,
.were
represented by companies
example, over the years

For

that,

OWEN
ELY

BY

leisure time spending was the big

the

impact

the

around

siderations

constructive background to a spe¬

sion

satisfied

SECURITIES

1955-1957

busy digesting its physical

/

pending tax cut suggests that 1964

was

the

goods spending.

just about the
will be the 22nd
same as the high recorded in 1956,
of
an
i n c r e a
there were a number of individ¬
spending.
ual stocks that showed handsome
which

Dow,

After

in

Thursday, November 7, 1963

was

Changing Age Composition

stock market

years.

period.

up-swing

And there are others too.

appliances. This change in the age

that

said

one

We have to

tion.

a

follower.

lives of

lead

men

being

and

—

rather than

/■

cata-

broad

this

in

inclusion

gory.

To express it a But how many realize that there
business
actually were fewer young adults
requires perspective and a
in
1960
than
in
1950?
This is

philosophy of operation. It is not
a
business, where, like the oldfashioned
pitchman,
you
move

out

war

and
obsolescence
factor
I ment
examine ARA Serv¬ covering the appliances bought in

differently this is a

which

peaked

the

goods spending

the middle 50s—plus the begin¬
& Seal—Radio
of America—as candidates ning/of a boom in family forma¬

Corp.
for

when

.

PUBLIC; UTILITY

capital

explanation,

this

audience.

your

little

the

-;,/■

major

a

.

created

Crown Cork

ices,

—

/

my

managements in the business.

to

Ours

In

stupidity.

or

boom

specific spending

few

a

in

But capital

over.

went

opinion, General Motors—huge as
it

with a mimeo¬

business. Everyone

what

business./

agement. Nor am I implying that
size means a loss of management

flexibility

around awhile, I

been

Having

have been a

an

Polaroid revolu¬

...

tionized the camera

sound until the suggestions for < today, let me
factor. Isn't this make two things clear: I don't go

table?

a

Hopes' jokes

Club

Diners

.

the butt of Bob

restaurant along with Leo Durochers' com¬
advertising the fact that ment "good guys don't win ball
gets drunk every night
games." An egotistical manage¬
have to wait two hours ment can also be a human man¬

and then

for

.

like opening a

little

a

by

did any business grow

:*/ when

,

made credit cards

which

war

resulted

goods

Which Warrant Preference

that

of

deferred demand for hard goods

a

.

price-earnings ratio based
recent earnings of $2.07

on

is 20.

the

,

Volume

Number 6314

198

.

The Commercial and Financial Chronicle

.

.

Y

A

"

,

.

_

i

'

■

......

■

,

•

General Clay to

Of Mfg. Chemists
Lucius

STOCKS

Meeting

the

WELLS FARGO

oldest

Mid-

and

Price

Yield

$1.60
whole. In

as .a

■

in

only

banking institution

one

expected opinion
favorable

a

At the present
in

22.0x

A

General

the

and

Southern

New

Army

the

with

Chairman

a n

Officer

Continental

of

Chief

d

banquet

day-long

panel

of

program

cussions

centering around

interest

vital

a

behind

the

discussed

to

over

the

by

term growth

industry,

pricing

corporate

anti-trust

laws,

a n

1962

of

addition, the chemical indus¬
stock

on

tool,
of

the

or

acceptance

of

re¬

hear

talk

a

Internal

new

at

been

dition, there

luncheon

session

General Clay, in

outstanding
served

dent's

In

A'

Ambassador, to
situation

with

assess

during the

General

Clay

129,

Fargo

has

In ad¬

open.

their

Reserves

Deposits

188,431

1959—

2,384,127

1958..—

2,321,026

1957—

2,131,537

,

qualities
if

have

of

leadership
nations

free

an

,

•

149,795

A

7.0

danger,

did;

shone

with

A -A

One of the most

in¬

human

survive.

little

lift

Brower,

of

Charles

ago

years

„

inspiring of all

experience is the fact that

people

know the

can

made

York,

New

Goof-Off."

and

salesmen

of

tired

Charley

is

live

other

men
our

lives

such

Churchill.

as

Per

Share

that

touch

ours,

♦Abstract
before

sick

the

tion,

the

of

talk

a

30th

by Mr. McFarland

Annual

Convention

National

Security Traders
Colorado Springs, Colo.

Operating
Earnings

want, to sell, workmen who don't
to work,
and laundrymen

want

want

up

don't

I

bia.

wash

to

am

shirts.

preachers

with

teach.

to

want

who

and teachers
my

But

Meller & Co. To

Admit Partner

pet pho¬

the sickest and tiredest

of leaders who don't want to lead.

Meller

& Co.,

Plaza,

New

1

Chase Manhattan

York

City, members

of the New York Stock

The

more

42.0

the

fact

I

study the problem

become

I

that

one

obsessed with

of

mankind's

on

Nov.

will

14

Exchange,

admit

Robert

Volpe to partnership.

36.0

41.1

45.9

Book
Value

<■.

Send
/

for FREE edition of

'

1962____

$3.39

$42.35

'

1961

pe¬

3.79

40.79

1960

4.04

39,19

A

1959
/

the communists.

•A

3.66

1958

'

-■

3.11

2.79

Leonard/a

Analysis of

33.02

1957

31.45

35.05

his

60 LIFE INSURANCE COMPANIES

position with the Continental Can

Company in December, 1962, and
became
man

a

National and Grindlays

Senior Partner of Leh¬

Brothers in February, 1963.

BANK

State St. Branch

and

■

'

j

% o

Bank Limited

Primary Markets in

78 Medium & Small Life

and

Companies

Head Office

ALBANY, N. Y.—State Street Securites

Corporation lias opened

branch

office

at

284

State Street.

officer.

Laird, Bissell 8 Meeds
Members

-Whitman Branch

New

Members

American

130

McKENZIE, Tenn.—Whitman

office

at

under

the

237

North

a

Main

Se¬

branch
Street,

direction of George N.

Wmsett.




Ralph B. Leonard & Sous, Inc.

MINERVA LONDON

Telex Nos. 22348-9

;

curities Co. has opened

Telegraphic Addreaa

STOCKS

Thomas Plowden-^Wardlaw is res¬
ident

M MSHOPSGATE, LONDON,

INSURANCE

a

York

BROADWAY,

Telephone:
Bell

Stock
Stock

Exchange
Exchange

NEW YORK

5, N.

Speciali&ts—Brokers & Dealers in Insurance Stocks
Bankers
ADEN

•

571-1170

the Government in
•

UGANDA

•

ZANZIBAR

Branches in
'

.

59

Broadway, New York 4, N. Y.

Y.

BArclay 7-3500

Teletype 212

to

KENYA

INDIA
'

•

PAKISTAN

•

CEYLON

:j
•

Telephone: 212 Dlgby 4-7485

BURMA

SOMALIA • EAST AFRICA
AND THE RHODESIAS

ADEN

of

Associa¬

Figures

Net

Year

If

lives in ways that

a

don't;

who

can

find

fold in

million

a

same

we

then we, too, can be called blessed.

great speech entitled, "The Age of

more

13,289

'

in

despair

his head."

on

homes.

few

the

14,826

uttermost

we

42.2

17,421

-

6.8

led;

magnificent

19,439

,

7.0

157,277

47.3%

in darkness, saw; in

man

dividual

18,700

7.4

free

to

Earnings
;

Winston
-

government clear down to the in¬

who

$16,846

of

magnified

don't

Earnings

said

ship from the highest echelons of

fed

As % of

un¬

qualities of greatness that

He's

Dividends

mo¬

suffered

has

We' must have this kind of leader¬

A

From

present

The world he saved calls blessings

the
must

we

and

going

are

who

Operating

'

7.7

166,925

.<

in

,

Crocker-

Net

7.2%

2,448,804

of

rank

from

was

personifies

Churchill

(2)

of

the

honoring, hope that made the midnight fair.

were

we

—

and

part.

to the

England,

doubtings,

whose mother

—

titles

Masefield, the poet-laure¬

of

"This

Dr. K. McFarland

Charley overlooked
-

pleasant

Churchill;'

Sir

competitive

Earnings

Capital Funds

201,299

the Berlin

retired

now

with the

compared

totaling

$210,706

'

2,711,984

.

Wall by

offices

1960—

a

following construction of the

Berlin

compared

as

of Wells

branches

As % of

Deposits ^

1962—_ $2,941,295

named

critical

Winston

the

honors,

mankind

John
ate

in

that

felt

stitutions

penalized.

increasingly detest

take

the

the

—

this

century. Thus,
I

As

fields

people.

first

honoring

these

in

Program

the

the

of

economics.

in

speakable agonies because of such

world

the

the

Excluding

Presi¬
on

as

as

before the State Banking Com¬
As

Capital Funds

service,

was

160

Growth in Assets and

Representative of Presi¬

Kennedy,

unduly

were

such

year

(In Thousands)

same

the

job

don't want to preach

;-

of

August, 1961, he

offices.

has

under President Eisenhower.

dent

a

policies.

than

1961—

military

Highway

Personal

riod

which

Bank,

activity

Advisory Committee

National
1954

additional

addition to his

Chairman

as

earnings

20 applications

are

the

..:A

day.

more

regula¬
the

in

in all

income—but just take part of the

greatest

half

associations

will

discuss

will

affecting industrial

a

possibility of

This practice is conservative

Internal

Revenue

to

Governmental agency

the branching policy

above,

Anglo

Clay, the

of

leadership,

Sir

American

constructive change over the prevailing at¬

a

aggressive with

Year End

tions

no

who

ment

for

continuation of the

a

grew I came to

people

leader¬

and

now

and

knowledge

my

Pontius Pilate

man

past

the Wells Fargo Bank has not chased the certificate

indicated

by Mortimer M. Cap¬

who

Revenue,

banks'

missioner for

officials

Commissioner

lin,

commercial

government

History

whole

;

certificates of deposit.

As

disaster procedures.

industry

United

gutless

I used to teach history,

Churchill

suitable to favorable long

appears

with many of the Eastern banks'

execu¬

by management for
planning of emergency

chemical

the

of

deposit in recent months. This reluctance to compete is favor¬

on

tensions

In addition to General

✓

in view

occur

is good with

threat, there is

able and represents

sponsibility
advance

where

ages past.

two

certain

the

the

titude in New York City. Also, no increase in the municipal, port¬

on

the

of

an

is

curses

This is true

Winston

increase of

an

folio suggests that these bonds have not been used to pay income

activity

the

and

above, earnings for

indicated

their

and

and

pressures

corporate

tives,

a

Chuchill

ship.

did

record

are

management

options
as

These problems

program.

in banking.

Without this future

and

In addition,

effectiveness

is

been the Wells Fargo Bank.

share which represent

year

citizen

for

(1)

may well bring a halt to the competitive situation in California,
whereby banks have, had to raise rates to retain savings accounts.

try executives will hear presenta¬
tions

Security

to the possibility of future

regarding rates paid by California savings and loan

marketing.
In

as

and

year-end^ earnings for 1962. It is possible

following

biggest

to

ourselves.

corporate

d

,

legislation

reasons:

The recent question raised by a Federal

members

panel

the

as

per

the

Winston

I

this

Wells

the

by

year^Thas

and,

20%

in¬

the investor and the chemical

are

bank

estimated at $4

of

Sir

honorary

rapidly growing, bank in terms of

more

complex of Northern California

of

areas

and the Wells Fargo

recently adopted aggressive branching policies. Also, the economic

Among the subjects to be

dustry.

that

Trucking Associations, Inc.

prodigious amount of work

a

support

make

history of pay-out. In addition to favorable earnings for 1963, the

dis¬

the chemical

to

in

the

of the Crocker and Citizens nfay

this point

the last five

close

Com-,

conclude

will

I did

areas

are

talks

merger

a

consolidation

foolish. The

outlook for the
The

seem

by holding

ample, the qualities of leadership exemplified by Winston Churchill.

America.

California. However, many

that favorable dividend treatment will

Executive

Can

of

States.

year are

Inc. in April, 1950.

pany,

Bank

remaining institutions of size

electronic data processing

in the

career

about

over

also the

has

1949, and became.,

in May,

well

always

Exponent of progressive conservatism terms "gutless leadership" in
as mankind's biggest curse.
Cites, as contrary ex¬

earnings. This may be 'attributed to the expenses of merger and

He retired from the

Army.

benefit

of

one

has

all walks of life

This institution has had, in this period, some years of disappointing

now

distinguished

a

S.

is

earnings

Nov. 26.
and

bring

merger

York

General Clay has served as Ad¬

had

Management

Corporation and Educational Director,'

American

(San Francisco).

First but any conjecture at

Manu¬

facturing Chemists' Association at

U.

1852.

the long run would

hav¬

as

time, the United California Bank has representation

The allowance of
well

Mortimer M. Caplin

Presidents

West, dating to

Motors

is permitted

be considered

may

Security First National-Bank (Los Angeles)

two

the

By Kenneth McFarland,* Topeka, Kansas, Guest lecturer,

compared to the

as

will place the combined institutions

position

not represented. The two

Bank

visor Ao

in

•

of the court regarding the Crocker-Anglo

competitive

Northern

both

are

on

.

Ratio

$4.00

state where branch banking

a

and Citizens National merger

City,

■

Price/Earnings

for 1JMJ3

1.87%

banking picture in California is unusual

The

Americana .Hotel,

'

1

.

equities of Wells Fargo Bank.

ing statewide representation. That bank is the Bank>of America.

the

..

U

Dividend

at present

of

23

%

,

BANK

Earnings

Nation

Conference

'

.

over

the

Estimated

The

year

'

•

extremely able and aggressive. It would

'

$88

Lucius^-D. Clay

"

..

.

been considered

This Week —Bank Stocks

banquet speaker for the 13th

Semi-Annual

/

the stockholder

Partner, Lehman Brothers, will be
the

,

Senior

Clay,

D.

(1819)

/

'

•

,

position in Northern California is strong. The Bank also is

BANK AND INSURANCE

Address Meeting :

General

'

.

-

CFC

24

The Commercial and Financial Chronicle

(1820)

and

Changing Banking Structure

private

have

justify the confidence of its cred¬

from page 13

method to improve our payments

position

would

stable wages,

at least to hold

the

within

increases

wage

maintain

to

be

or

in¬

labor.
effective program must also
in

crease

An

include

into

budget

our

do¬

balance

and

bring

to

steps

mestic

of

productivity

of the

protect the buying power
is

There

dollar.

of

ders

than

rather

establishment

the

exchange.

if

that,

We

the obvious conclu¬

cannot escape

sion

advance

equilibrium

of

international

in

bor¬

improvidence serves only

obstruct

to

quar¬

the

within

to maintain

are

we

the value of the dollar and inter¬

have
reject inflation
we

rency,

in

confidence

national

This cannot be done on the

basis

of

several

our

cur¬

choice but to
a way of life.

no
as

solution

The

Strong Dollar

a

balance

the

to

of

the

return

in the

United

that

good

so

investment
whether

which

that

as

in¬

or

is at least as at¬

terest received,
tractive

States,

earnings

equity

its

on

be

can

obtained abroad and for the U. S.

its

confine

to

Government

ex-?|

penditures abroad, whether direct

military assistance
or
aid, to the net balance

military,
economic

by the non-governmental

earned

stated

Shakespeare

simple.

three centuries ago:

"I can easier
do than

tell 20 what were good to
be

of

one

the

20

to

follow

my

of

Rectification

that

—and

essentially

Willingness
is

discipline

that

of

governmental

means

litical-discipline.
exercise

balance

the

requires

payments

Bank

to
the

is to be achieved in

our

in¬

transactions.

It

is

ternational

for

impossible
cake

too.

If

rates

we

en¬

\yorld

below

well

his

long-term

maintain

to

money

it

have

to

one

eat

and

deavor

levels, we must expect that for¬
eign

volve

political
of

we

of

risks

difficult

is

will endeavor to
advantage of the bargain

to

assess.

ternational

our

trade1 and

commerce,

all of the related effects on

with

internal economy.

pwn

Before

pessimist

I

would

classify

to

begin

you

a

as

;

prophet of

or

like

to

by saying that I have com¬

you

plete

American econ¬

solve
willing to

in our ability to

and

omy

the

of

strength

basic

the

in

confidence

this problem if we are

attack it with determination.

Administration has given

of

The

its sol¬

pledge to preserve the value
dollar in relation to gold.

emn

the

Wage-price inflation in Europe is
working in our favor and has
tendency

Court

iri

the

which

held

New

1961

and,

of

the

United

Philadelphia

that

Act

Section

7

applies

mergers.

case,
the

of

bank

to

■

Broader

Branching

Chemical Bank

Area

New

York

Trust Company and I, personally

frequently

expressed

support

strong

of

pur

proposals

to

broaden gradually the geographic
which

areas

mitted

to

banks,

our

In

serve.

closer

gradually
A' number

of

are, per¬

February

of

seek

we

to

D. C.—Senator Harry F. Byrd (center), Dem.,
Va., Chairman of the Senate Finance Committee, chats with two
industry witnesses during a recess of the Committee's public hear¬

ings

did

nor

which

the New York

permitted to

were

again

reasons

actment of the

1963, I

before

further

support

why

sion,

Office

and

primarily

the

so-called

Protection"

provi-.

written,

presently

as

hindrance

a

is,

to

the

efficient

competitive,

President

Bank

New

delivered

sociation

own

deal

good

a

faith

of

in

when

to

express

confidence and to boost

your own
U.

abroad,

go

you

value of the dol¬

No

down.

than

rather

A.

S.

other

talk

to

country

we

with

enjoy in the U. S. A., and

good

is

there

management

why the American dol¬

reason

should

the

New

ties

and

respected

the

in

currency

City

around

is not

area

the

inclusion

of

Counties

the

and

boroughs of New York

five

Structure

recent

In

Y

single banking district.

much

spoken

and

much

so

banking struc-,

our

adjust

requirements

the

to

to

new

conditions

and

To

work

at

are

system

our

of

these pressures

me,

the vast

the

distribution

of

nation's

goods

consumer.

developments

we

clear

tendency

and

In these,

have

seen

toward

flexible, and

to

the

urging

consideration, of
introduced to

favorable

bill which

a

was

consolidate the first

second banking districts into
I

one.

might

in these

that,

add

position of

our

ters

in favor of

a

respect

a

the

proposed

bill,

would not affect

.

.

institution."

.

agreeable to

liberalization

further

.

.

thereof,

enacted,

as

such type of

.

on

bankers

just

to

kind

.

,

.

background

understandable

an

the part of commercial

that

Other

and

be

must

prepared

to

cient banking services possible

industrial and

larger

units,

well

as

com¬

to

as

to

the

public at large.

"Perhaps

hopeful

line

of

approach to the problem of bank¬
ing

would

structure

phasize

the

be

to

'trading

area'

field

of

appropriate
operation.

em¬

as

an

banking

'

'

endorse

this

lower

are

quirements

for

progress

are,

virtually

blotted

therefore, both interest rates and

not to mention in

profit levels competitive with the

state

world.

outer

politan

Justifying Creditors' Confidence

position has an analogy to
of
a
commercial bank—it

Our
that

because

survives

dence of its

creditors, as

marked1 at the Vienna
in

1961.

himself to the two

confi¬
the head

of ' the

of the Austrian Central

Conference

Bank re¬

that their

A well-managed
need

large

amount

'

but

of reserves will maintain

the solvency

managed

of

bank.

an

improvidently

.The problem of

the United States, is to




mass

industries,

of

velopment
broad

geographic

retain and

the

markets,

of

movement

with

people

from

the cities to suburbia—all of these

our

the

to force

adequacy

a

of

present structure to meet the

banking
raise

needs

grave

capability
agencies,
to

no

and

tranportation, the growth and de¬

of

bank does not

reserves,

communications

in

ments

combined

position is no different

metro¬

Technological advances, improve¬

re-appraisal

said, must remember

even

country.

our

factors have

countries hold¬

from that of a bank.

of

centers

cases

large

the

Monetary

Britain and the United

States —he

in

some

Addressing

ing the bulk of foreign monetary
reserves,

lines,

lines,

city

out

deal

either

an

of
as

of

today

questions

as

and
to

to
the

supervisory

the

presently constituted,

with

the

equitable

situation

basis

or

on

in

the best interests of the banks and
the public they serve.

Recognition

of

.

'

.

these

pressures

a

proposals

government

both

called

judgment,

my

bill,

which

dorsed

by

bankers,
know
I

variety of

I

believe

of

many

and,

what

This

so-

in

was,

forward-looking

a

of

was

the

course,

happened to

en¬

need

support of

with

convictions

it.

all

-

banking structure,
need for

as

pany'

prefer

nomic

of

which

in

area

office is located.
"I
the

resulting

on

the

accompanied

head

con¬

very

With banks

little

when

is

the

other

we

proved
between

liaison
the

authorities
the
our

growth

and

various

in matters
-

and

for

im¬

cooperation

a

supervisory

might

so

vital

development

me

quote just

national

be

The

feel

re¬

to

one

questions

branches,

level*

authority

as

a

the

responsibility
of

for

ruling

way

with

a

initial
on

mergers,

holding

at

all
new

company.

ac-;

quisitions, and bank charters in

respect, which I-hope - is the

given

'

you ~

also.

Alfred

-

case

Hayes,

area.

his

words

1 There

He

his

to

commun¬

come

in

other
there."

spoken

Senator

is

name

credit

any

were

than

any

the

want

state

to

from

one

the

by

Carter

the

of

history

of

fact

that

expansion

debate

and

a

on

branching

vigorous

a

judgment,
sure

the

way

is, in

thing, and I

good

constructive

some

changes will ultimately

come

out

partment,

place

of

of

doesn't

of it. Our

to

regional

about it.

bank.

his

monopolize

not

or>

for whose judgment I have great
with

than

source

continues in

be

perhaps

level,

of

He wants

credit facilities

famous

bank

my

ultimate solution

found

to

banking system. In the inter¬
let

whatever the

the

misleading

reason

'monopolist.'

Glass, whose
most

is :a

a

rough

analogy, at least, for this kind of

own

State

Banking De¬

in its report for 1962,
pointed out that it is conducting a
leased

need

in that

against

is

to

come

other

none

much

single organiza¬

Federal

never

so-called

banking,

exclude

major

the

in

The fact is that the little banker

has

expansion

over

back

way

protested against

ever

bank,

suggested. I would hope that,

the

A

nothing

debate

'monopolistic'/ tendencies

at

especially

the

branch banking. The appeal of the

been

and

of course,

about

"I assert here that

tion

bank

Fed¬

whole period has any merchant or'
businessman having relationships

ophies of the supervisory agencies
to

of the

Washington.

leading member of the Banking
Currency Committee, said:

with

respect

in

well-known Senator, and

a

concentration

a

to

and

super¬

whether

a

inclined

myself and,

am

branching.

1932,
a

is,

new

bank

so

greater degree of

by

authority in

authority'-

branching and

Cites Carter Glass

There

bank

might not
a

have

Federal bank legislation.

from

authority

visory matters

of

its

...

decentralization,

as

eco¬

uncertainty and

our

adjustment of the philos¬

com¬

wondering, too, whether

am

current

divided

holding

a

throughout the

setup)

the' duced through

to

well

to

were

fusion

,

our own

respect

modernization

for

it

savings
you

could quote many responsible

authorities in

I

idea

accommodations

Bill."

"Root

regional

this, line to members

wants

'

unqualified support of the

est of time,

has been reflected in

from

our

people

eral Reserve Board in

through

gained

to

fact, have made suggestions along

"Specifically, I think- a good
than can are a natural consequence of the
Still later, I e xpre ssed to case might be made for allowing ity. He
investments great changes which have taken
bank in
Rockefeller,
Senator any bank considerable freedom to
abroad, then capital will flow out place in our economy and the Governor
of
this
These
country.
Minimum re¬ shifts in population which have Mahoney and Superintendent Root operate branches (or affiliates if

that

profits

be

of

charters.

new

branch

one

carried

are

responsible

sort

some

they, too, must ad¬

long-range trends of this

offer the most complete and effi¬

branching

to

privileges for savings banks
but rather would be

feeling

seldpm

district"

this

there has been

mercial

not

we are

maintaining the status

with

quo

Against

principle

larger,

which

,

of

Washington for decision."

efficient

more

"banking

these

bank as follows:

"Moreover, although

area s

com¬

legislative

their

market

Federal;

our

system, where only the most
important issues involving mat¬

over; over bank mergers,

production

services to the

lines.

Subsequently, I addressed

there has been

years

of

the

in

for

respect

into one

communications, I also stated the
Changing Banking

and

decades

in

court

enterprises operating in extended

leaders

en¬

bill,

recently embraced the concept of

Rockland

munications

Gover¬

They urged

decentralization

year

more

world.
Our

this

of

changes that have occurred

present-day reali¬

urged

continue to be the

not

and

of

Nassau, Suffolk, Westchester and

and
most

York

consonant with

has

achieved the standard of liv¬

ever

districts, in

banking

21

aware

organization

their

speech

Meeting

all

are

several

in

Reserve
a

quoting:

ment, the present composition of

trends

(left),
(right),

provisions of the House-passed

Thirty-Fifth

am

mitted reasons why, in our judg¬

the

Dean

4% dividend tax credit.

in

the

Jan.

on

said, and. I

concern

grave

gains

Federal

York,

before

recently

expressed

B.

Exchange Firms.

the New York State Bankers As¬

"We

occasion, I also sub¬

same

of the

Mid-Winter

whom I have talked

this

pn

capital

of the

of

Annual

equilibrium., and sound banking in this State,

to

Howard

ap¬

liberalization

believe

we

bill.

Joint

the

of the. law and to discuss

"Home

and retention

City banks

Legislative Committee in Albany,
to

tax

conduct their

business. On Jan. 30,

peared

Administration's

of the Association of Stock

nors

compelling

the

on

partner of Harris, Upham & Co., and Millard F. West, Jr.
partner of Auchincloss, Parker & Redpatli, testified as

banking activities. We did, how¬
ever, see very

of

;I strongly urge all of you,

so

WASHINGTON,

we

statewide

in

engage

archaic

long-range

lar

that

bankers

still

no

time

plans for the formation of

no

growth

the

ing

that

bank holding company,

a

countries, and I would say there

it

had
a

at

stated

European

about

is

and

prices

world

bring

to

cost-price squeeze and. the day.

a

of

in

the decision of the

States

Clayton

so-called

reassure, for the enlargement of the area in

strong pressures

result is

York

Supreme

The

the
Bill

Legislative Committee in Albany

forces and shrinkages in in¬

ary

gains through technological prog¬
or
because of tax rates that

capital investment, the net

Bill,

New

Hearings

196Q, I appeared before the Joint

ture, it must be obvious to all that

deter

At Tax Bill

of

initiating worldwide recession¬

as

increases in labor costs exceeding

ress

of

Favors

include,

These might conceivably go so far

If, whether because of written about

offer.

and

full impact

the

nature,

which

economic

an

there

Thursday, November 7, 1963

.

of the Federal

Banking

most recently,

have

The consequences pi failure in¬

borrowers

take

dis¬

than

rather

latter

passage

Merger

York

dollar

trusted.

po-1 the

price that must be paid if a bal¬
ance

are

as

the

make

after

sought

monetary

fiscal,
policies

to

necessary

the

lar.

advice."

own

of

is

solved,

be

economic

and

The
less

to

combination

private sector of the economy! with
actual solution, however, is have

or

is

problem

doom,

payments problem can be simply
stated.
It is to make the dollar

must

and

make

can

make, if the balance of payments

me

Solution Is

contribution

The

years.

last

the

of

record

the

government

country. Internal fi¬

any

nancial

to

way

no

antine inflation

itors.

significant

The

the

course,

Omnibus
Continued

and

several

.

legislative and judiciary develop¬
ments.

And Balance of Payments

sources,

been

.

study,
in

expected

1963,

of

be

re¬

problems

to

re¬

lating to the structure of banking.
Recently,
a
seven-man
study
committee of the New York State

Bankers

Association

released

a

report

recommending
that
the
State Legislature modify or abol¬
ish

restrictions

on

mergers.: The

report

expressed the feeling
there..are. certain

that

communities,

particularly

up-state,

which lack

Volume

adequate

Number

198

facilities

banking

6314

.

.

of

performed it well over a long

and

and

(1821);

Chronicle

The Commercial and Financial

.

laxity

lowered standards in

or

period of years, during the greater

the

of

part of which the large commer¬

department.

relatively larger banks from the

cial banks, at least in New York

the

major, cities.

City, really

Federal

therefore,
the

from

would

by

entry

merger

smaller

The

banks,

showed no great in¬

Our

his

institutions supervised by

benefit

which,

fear entry by branching

terest

vvr-V- —it

law..

Board

has

System

Reserve

ex¬

lieve the

certain

be¬

proposed legislation has
obvious

would

I

although

recommendation,

prefer

and

defects,

to

communication to all

'

advising them that as of a certain

I

placed

date their funds would be
on

been

continue

time in re¬

a

with

lenders have
aggressively seeking em¬

so

ployment for their funds. In every

the large part; of the country, - individual
banking develop more gradually,
commercial banking systems f are businessmen,
engaged
in both
beginning with a further broad¬
today competing aggressively for large and small enterprises, tell
ening of the areas which banks a share of- the; savings business me that banks and other financial
are
permitted to serve. Further,
are
and we will continue to .endeavor institutions
actively urging
I dd notbelieve we .are ready to
to attract their business to the them to come in for loans to ex¬
accept the arguments that have
best of our ability, as we do in pand their operations."'
branching

for

been

advanced

across

theistate lines,:.. Although

recognize that

I

pretty strong case

a

could jse, made ^or

including parts
of cNewy Jersey. and. Connecticut;
in •' the -New York City banking

district:

subject

Whole:

structure

is

•

-

that the

fact

The-.very

banking

of ' our

.

receiving

so

much

*

study and attention is a most en¬

couraging
the

doubt,
in
direction will

and,

sign

general

right

it.

of

out

come

To

it seems

me,

imperative that the banking sys¬
tem of the United States be freed

of

of

some

way

be

to

to

as

and

shackles

its

expand in such a
adequately serve the

permitted

other elements of our free enter¬

in which it plays

prise economy
such

vital role.

a

Savings

Mutual

Toward

in

just

Now,

of you

any

case

be hatching a secret plot to

may

drop me over the side of this ship
dark

some

express

of

policy
to

>

night, I should like to

feelings

my

the

and

with

war"

respect

being

bank

my

"cold

the

waged

against the "mutuals" by some of
commercial

the

frater¬

banking

nity.
I

position

the

to

already

have taken on certain

we

Finally, if any of you

mutual savings banks of

the

New

City, I simply point out that
now
have
11
savings bank

we

to

as

attitude

cpen-minded

our

with

respect

extension

the

to

serving

officers
our

around

boards

of

metropolitan

the

or

banks.

Personally, I can

While

savings banks in New York can¬
continue

side by side

live

to

cooperation

of

atmosphere

antagonism.

than

voluntary restraint and
statesmanship in this area in or¬
der
that
we
may
successfully
avoid

^

directed

I

maintaining

and

increasing

toward

perhaps

caution.

of

word

a

the

futher

interest rates.

level of short-term

spite of much opposition mostly

political it seems very likely that
policy will be continued- for

this

subject al¬

immediate future,

should

there

in

modification

to

be

thorities

indeed,

would,

be
of

somewhat

with

fronted

con¬

di¬

lemma.

a

taken
accord

taken

by

should

on

addition,

The

term and

Because

petitive
our

cast

size from

longs into the short-term ob¬

The
now

opinions

an

trend

balance

the

for

will

least

at

the

depend

well

as

a.

fairly

and,

of

in

narrow

savings banks—is a good

one

no

can

banker is

life, of a

the

that

say

Certainly

in.

be

to

business

interesting and stimulating

an

in the fundamental

I believe

of

strength

our

system and the

with

confronted

.be

problems

have

conditions,

confidence in

deal with them

to

continue

ability to

our

the position of

which the

respect and confidence

by Mr. Renchard delivered
Annual Fall Convention of

70th

Association

Banks

Savings

of

that

which

problem,
will have

we

competitive

to

because

that

the

It

ward.

there

will

appears

be

bit

a

give

will

authorities

New

State, Cruise to Nassau, Bahamas,
S. S. Rotterdam, pn Oct. 19, 1963.

the

by

excess

the

brought

authorities
the

System
by

down
and

this,

financing of the

or

Customers' Brokers

Meetings

Holding

Customers'

of

'Association

The

Brokers

will, hold

an

educational

the

to

bring

the campaign
We have

time

from

to tax the mutuals.

registered

with

Paris

the

that

in

broker

regard to some of its advertis¬

have consid¬

we

inappropriate
As far

taste.

is

which

copy,

ered

the

as

I

concerned,

tax

have

philosophy-which is
a

matter of

on

status

and

that

be

more

a

the

in

money

The

about

the

other

I have

making
tax

a

ment with

may
come

It

tual

have

be

is

as

fellow's

never

sub¬

I believe

banks

would

efforts

other

to

on

treat¬

their

items
own

re¬
as

in¬

status.

our

with

mu-

savings banks of New York
a

states

useful




function

association

one

any

insured

the

to

clearly

that

tion

of this kind

the

most

toward

risky
of

bankers

and

and invest¬

of loans
the

and

competi¬

gradual lowering
Superintend¬

making

his address

the Trust Division

of the New

in

Root,

York

a

rate

speculative

credit standards.

ent
to

of

gradually drives

conservative

more

types

ments

was

figure

State

Bankers

Club, will
Union Pacific Rail¬
Chicago, Rock Island
Co.

Railroad
Arthur

be

note

of

caution

and

stated

recently urged his bank

aminers

to

be

vigilant for

he
ex¬

signs

addition,

large amount of money

favorable force in keep¬

Reserve

of

margin require¬

50%

a

70%

to

by the

Board is

more

an

in¬

moderately

restrictive credit policy.

bulge

in

increase

modest

rates

near-

focal

the

is

Specialists in
U. S. GOVERNMENT
and

-

the

of

Island,

who

outlook for their

roads as well as the
for the proposed merger.

respective
reasons

rates

too

not

Chicago Analysts to Hear
111.—E.

Claiborne

will be
guest speaker
at the luncheon
meeting of the Investment Anal¬
ysts Society of Chicago to be held
today (Nov. 7) in the Maximilan

Robins, A. H. Robins Co.,

Room of the Bismarck

Rexall
will
14

&

be

Drug
the

&

Hotel.

Chemical

subject

of

the

meeting and American
Nnv

-

9.1.

been

of

balance

payments

SECURITIES

in

prob-

>

Certificates of Deposit

/

;u

,

Impact of Tax Reduction

v

business

the

With

pattern

what is called a plateau

tion

rises

as

near-term
the

the

will

do

interest

in

the ques¬

what

to

authorities

rates

mone¬

about
should

expected cut in income taxes

bring

about

lieved

that

result in
omy,

more

a

dynamic

here. It is generally be¬

economy

needs

a

a

tax

more

reduction

Potash

aggressive econ¬

nr\ v>

rJi +i

8c Co.

accompanied
by
greater
larger working capital

INCORPORATED

20 BROAD

STREET

for

trend in

be should

Aubrey G. Lanston

will

Co. as well as additional capacity. Ac¬
Nov. cordingly, a further modest up¬

Chemical of the meeting to

hplH

helpful

far

so

lem.

tary

CHICAGO,

FEDERAL AGENCY

meet

to

sizable rise in short-term

has

rates
our

enough

high

are

competitive conditions. This

these

R. Ellis John¬

Chicago-Rock
discuss

Speakers

Stoddard

E.

Union Pacific and

Association

April 18 of this year, sounded

had

being held today

Financial history demon-

$10,000.

on

feeling that the

supplied

this country.

in

the

Pacific

will

will

respect to bad debt

related

tax

associations

&

son,

equitable

such

of savings and

group

discuss

road and the

pattern where the amount placed

for lower, income

more

and

serves

1

case

rates,

a

a

the

meeting

The

(Nov. 7) at the Wall St.

This, of course, followed the usual

constructive attitude

commercial

through

arranged

invest $1,000,000 in

to

shares of
loan

year,

I was

bank in
to find

where

area

In

market rates.

interest

term

upward

an

o'ffered to

stay here because our short-term

question

opposed,

concentrate their

to

had

a

the

been.

from

dication

meeting on the outlook for

personal

a

scribed to this approach.

for

poor

it

principle, to directing ■limited

attack

an

tax

in

and

this

earlier

Foundation for Commercial Banks

ing

of savings.

form

usual

amazed, when visiting

time

to

the

objections

our

a

Federal

in the short-term

the re¬
point of the pattern to give help
all subjects. We are not now, nor
tail
industry on Nov. 11 at 15
to the dollar and our gold hold¬
have we been at any time, sup¬
ding
for
business,
particularly William Street, at 4 p.m. Speak¬
ings so that money which will
porters of the Bankers Committee where it involves solicitation of ers will be Theodore E.< Wolff,
seek the highest rate of return in
for Tax Equality, and we have so-called "hot
money
or invest¬ Coggeshall & Hicks, and Jerome
free
world
money
centers will
taken no direct participation
in ment money," as contrasted with H. Buff, Burnham and Company.
timely for us to consider the pos¬
sible effects of over-zealous bid¬

in

much

The increase in
ments

market, is tending

money

with

to indicate that

seems

requirements and refunding needs
of the Treasury

along

much.

with

money

new

This,

ing these rates from going up too

monetary

along

market.

very

ties is

being

are

the

as

seeking an outlet in long-securi¬

of the Fed¬

reserves

not

does

operations

have

they

requirements of the econ¬

Reserve

requirements

public,

pretty

re¬

omy.

The

Government

long-term interest rates will stay

some

the member banks to meet the fi¬
nancial

there has

interest rates.

corporate bonds being

cost

will be required

which

serves,

because

the not too sizable amount of new

though the mone¬

more even

rates,

capital market rates to ad¬
since the financing of new

the

of

the

winter business will

and

in

well as
has
been
confined mostly to other sectors

need for funds to finance the usual
fall

have

little question but

very

refunding

up¬

though

as

Static

rates

the capital market to

on

is

money

special¬

indications

are

here

trend

payments

modestly

very

market

the

vance

rates

bit of

ists

interest

near-term

on

want

meet

near-term

caution among some of its

of

these rates up as

what

York
on

put

There

balance

our

abroad. This is developing a

eral

♦An address

the

the

discipline of

payments

means

traditionally enjoys in his

banker

the

-

get

ra

only

money

been

un¬

I help in the providing of the

effectively and to

earn

of

variety of tary

a

and

new

the

der

for¬

great,,-*

very

there has not been the same pres¬

move

market is still

a

spite of the fairly noticeable rise

'

money

to

balance

our

advanced

as

sure

I include mutual

course,

of

Long-term

Money Rates to Advance
The

near-term
upon

Long Rates to Remain

the non-Federal bonds remain rel¬

range.

Our

problem.

of

trend of these rates. The most dis¬
tant Government issues

will

rapidly and

dependent

.

the free world

upon

that

rates

more

conditions

rid

upward

The extent of this rise

year.

it may be

this time.*

ally writrolled

to the effect that money

market rates will show

com¬

money«

extent, will not become domestic¬

around

are

the

prevent

world

short-term

now

eign

that

to

sharply than is being fore¬

at

rates,

V:

are

free

have to advance
more

ligations.

used

less

are

must remain

we

with

own

be
the

rates, and

market conditions

near-

long-term issues raised

movement in spme

Europe

boom and bust.

in¬

the question as to when there will
a

in

such conditions from going into a

lessening of

between

spread

interest

generally

ways

issues

more

developing

plentiful credit conditions

Conclusion

:

not

organizations

these

In

are

higheir

balance of

In

activity.

event, the monetary au¬

such

world

commitments, in

securities.

yield

price

substantial

a

economic

in

downturn

the

pressures

should be watched closely because

profitable for

atively stable in

controls.

event community.

In
periods of rising interest
be rates, it is only natural that com¬
to
imply that we are in petition for deposits should - be¬
with the official positions come
keener, and I believe it is

this

Association,

imposi¬

additonal regulations and

of

one.

the New York State Bankers

and

the consequent

past and
tion

of the mistakes of the

some

present banking
generally progres¬
have already referred to the im¬
sive and cap'able manner in which
pact of the balance of payments it is' being managed. To me, the
-problem on our country's mone¬ future of our business is bright.
tary policy,- which presently is While it is inevitable that We will

the

both

of

gree

not

Caution

of

Word

for

Now

Association

Bankers

American

of

are,

we

of

members

strongly

the exercise of some de¬

suggest

at

course,

this re¬

in

caution

it

inflationary

free

market

money

the

over,

which

our

problem.

in

these

closing, may I say that I
the believe
the
banking business—

commercial banks and the mutual

additional branching privileges to .In

savings banks.

liberal terms.

too

on

of

spect seems timely, and I

see

why

whatsoever

reason

an

and

note

President of their respec¬

man

tive

in

A

here

competitive

other

vestors.. to«make

position of either Chair¬

ing the

no

advisory

of them presently hold¬

10

area,

of

members

as

branch

various

'

ways

assurances

we

York

lieve

some

place

we

with

the

you

have any

enjoy

ties

close

the

on

legislative proposals, which I be¬
gives

freely

v

doubts about., the. value

In

referred

have

attitude.

live"

in

giving aid to

makes

render. How¬ tin's concern is primarily in the
believe in fair competi¬ field of mortgage credit, which he
practices and, a "live arid let believes is being extended too

tive

those

able

happen to know that Mr. Mar¬

I

rates

remain

the favorable rate of return avail¬

ever, we

rather

Banks

that we

interest

to

payments

in a position to

are

not

Attitude

that

true

quite

all other areas of service

no

legislative developments

some

is

It

CHIPPENDALE, JR.

money centers and in this way we
are

basis.

bearing

non-interest

a

Short-term

when

years

T.

Banking and Cur¬

on

"L cannot recall

cent

BY JOHN

said the following:

rency,

compound interest accounts

of its

state-wide

see

pressed himself a number of

in

or

1940, I believe—> Committee

around

was

addressed a

Personally, I do not oppose this

deposits

savings

in

on

Chairman Martin of
of Governors of the

times
and are strongly opposed to any mortgage lending. ; I recall very recently along the same lines and,
modification of the Home Office clearly
the occasion
when the in fact, in his testimony in July
of
this
year
before the House
Protection clause now part of the Chemical Bank & Trust Company
of course,

Reporter

25

short-term interest rates

not
r*nc

be
c«ir*Vi

unexpected under
ci C

IVIOPe—

NEW YORK
☆

CHICAGO

☆

☆

BOSTON

26

The Commercial and Financial Chronicle

(1822)

The Current Climate

we

months to find that

six

next

Banking

Continued from page

15
In my

banks in New York State?

ceive

ings,

few

the

years,

Perhaps

Savings

Should Be the

ing

and

banks

institutions

assist¬

pension fund¬

management

by

small

by unions.

and

These

IDEAS to stimulate discussion.
we

specialized in¬

are

The

commercial

banks

have made much of the full

ice,

one-stop

idea.

In

serv¬

doing

so

before the
interest?"
they have identified themselves
Associated Industries of New York
May we assume that the real
by analogy as "department stores
The increasingly expressed con¬
State, Baldwin MaUll, President Of
interest of the commercial banks
of
finance."
But
commercial

of

cern

the

of

cost

commercial

ac¬

believe that

to

one

it is not to the

over

deposit

savings

leads

counts

banks

public interest for

banks

to

the

usurp

position of savings institutions in

of individual savings

the handling
accounts.

the

Bank

National

Gaylord

cago,

of

Vice-Chairrrtart

The

First

Chi¬

of

Jr.,

Freeman,

A.

speaking to the ABA Convention
in

Washington

made

strong plea to commercial

a

banks

Weeks ago,

three

to

the market for

stay in

savings despite the high cost in¬
volved.
ment

Making note of the argu¬

that

tracted

in

to

whose

assets

8%"

and

"Commercial
back to the

nating
cost

was

the

therefore,

that,

should

banks

to

system

move

level, elimi¬

old rate

large part of their fixed

a

structure," he asked the ques¬

tion, "Are not the increased inter¬
est costs now

mercial

being borne by com¬

bdnks

in

the

nature

of

Freeman

is their action in the

If this is so,

Approximately

interest?

public

accounts hgve bal¬

half of savings

of uhdet $500. Nevertheless,

ances

savings banks have not balked at
paying uniform interest dividends
to

depositors of virtually any bal¬
They' Cati

ance*

only if they are able to main¬
total
savings
deposits
in

so

tain

sufficient

amounts

to

in sufficient

earnings to offset the

high cost of servicing thousands
Of small accounts for

the

of

one

two depositors who cannot

maintain

deposits

submit

that

have

very

a

I

$500.

above

the

significant

part

to

effort

the part of the

on

banking

market

thereof—its

and

—

virtue

by

position in the

econ¬

omy as a whole." In view of past
history and the remarks of other

that

is

the

reduction

a

likely

a

mercial bank

of

accounts

not

rates
once

fold?

addition

for

interest

prospect

is safely within the com¬

saver

the

in

future

Perhaps
service

a

whose

justify

the

even

charge

activity

small

does

balance

maintained therein may be antici¬

pated.

possibility

a

is

move

the

on

mercial banks at

a

part

real

very

of

some near

Com¬

future

teriorated by
of

self-seeking

interests

part of such banking

institutions

off only those
which

upon

be made.,

can

the

on

a

the

of

One

concern

to all

Controversy

problems

great

of

banking institutions

recently has been the trend in in¬
terest

rates

State.

outside
have

We

of New

seen

York

helter-

a

part of savings

stitutions

in

to

interest

pay

on

jected

we

rather

to

terest-rate

of

parts

have been sub¬

provocative

advertising in

in¬

our own

local newspapers by these institu¬

tions.

This situation

larly exasperating while

we

unable to

interest-

adjust

dividends

our own

payments.

Its

has

diminished

since

the

lid

dividends

signifi¬

somewhat

interest

on

removed

was

were

by the Banking Board.

last

and

July

The trend

the

and

accompanying

blatant
papers

ity

considerable

it

had

ances

fer

that they

their

might better trans¬

accounts

to

savings in¬

stitutions if they expect to

interest
York

commercial

bank

and

rr

Ore the

New

notes

its annual report that it is
more

obtain

Another

them.

on

in

feeling

the

of

just

formally
the

Banker

commercial
small

by

must

be

It

or

that

charge

applied on them for withdraw¬

als

until

the

cost of

accounts
cover

handling."

B.

become

the

If the

bank's

commer¬

trend

and




a

Chair¬

has
over

that

the

new

regulations

rather

bleak

to

quality control of lending
among

these

savings

loan associations.

is

need

the

this

demon¬

of

savings banks in New York
State have maintained a truly re¬
markable record in mortgage fi¬
while

nancing

adhering

to

the

be

this

for

that

portfolio in

crease

in

to home

our

home

large

a

mortgages
steady in¬

commitment

mortgages in the face of

banks
and

their

use

spe¬

their

and

in

large

There

view
rates

able assets
in

of

is

assess

what

determine

to per-

need

we

We

assign realistic priorities to

must

Then

objectives.

our

sent

we can pre¬

to the public

case

our

and to

the legislature in terms of respon¬

sible Tndustr;j$solidan^
then

expect

and to

be heard

to

realize the full public service po¬
tential toward which
address

*An

the

at

the

70th

the

board

on

delivered

by Dr. Murphy

of

Association
S.

S.

of

Convention

Fall

Annual

Banks

Savings

strive.

we

New

Rotterdam

on

a

Nassau, Bahamas, Oct. 19, 1963.

Uneq ual Treatment Stifles

Savings Banks' Growth

and

in credit,
be

that, they can assist

so

for

enhance

the

Maull

It

three

to

ideas

serv¬

in

thrift

the

light

today

turn

problem

to

which

event

today, and

a

to

People

getting
as

the

services,

personal

was

management
in

sources

tain

the

plete

of

most

clear

both

institutions

family

needs,

of

alert to

ever

It

has

of

day.

Our

complex

more

viz.

importance of differential govern¬
restrictions
and

;

in

inhibiting

encouraging

others

various types of financial
In the latter

like

most

other

accounts of

as

unlike

the'
not

are

deposit insurance; that
1

a

savings

unions may make

loans

on

basis

cash

a

banks,

personal

or

for

the

of

durable

savings

banks,

eligible

for

tax
of

goods

<

and

houses; that, unlike mutual
unions

credit

Federal

well

as

are
as

charters; and that they enjoy

advantages
financial

over

other

types

that

both

in

implies

the

fulfilled

strongly

of

fulfill,

helped

or

and,that their failure to do

so

has

omy,

institutions,

is

We need to be
on

most
of

among

are

the

highly regulated of all types

business.

Regulation,

form

and

statutes, and

strict

of

and

in

rules

in the form of

traditional

bankers

both

hard-and-fast

the

rules

guiding

inspection

of

every

teams,

important

institutions'

financial

estates of $100,000 or less to obtain

business, from their establishment;

economically,

choice

at all, the effect¬

of

business

quality,

lines;

they

composition, and amount of assets;

Ought perhaps the savings

types of liabilities; prices paid and

management
this

problem

an open

mind?

The establishment of individual
under

programs

Keogh Act is another
exploration

intermediaries

best

product

capable,

are

area

and

in

the

of

and

test

provide

which

the

at

they

lowest

possible cost to the public.

context, "product"

In'this
not just

means

deposit accounts, but loan services
and

indeed all

not

services

finan¬

of

only deposit integrity but such

things

convenience

as

of

access

customers,

and

up-to-date product-mix, pro¬

viding

and

whenever

prices
or

received;

to

liquidation.

regulated
an

economy

which

ruestions.

raises

their merger

Such

in

sector

unplanned,

which

diversified

a

possible

new

services customers want whenever

the present

integrity
other

they want them.

If

high degree of deposit

could

be

retained

performance

sta h d

and
t d s

a

raised, the financial system would
be

improved. But it is widely held

that

performance

deposit

standards

can-'

endangering

integrity.
Competition Means

enterprise
to

way

f

the

lowest

free-

traditional

to

economic

achieve

taining

and especially its major de¬

thrift

must

general

more

theory,

the

best

is

cost

the

product

through the

competition.

By compe¬

the

mean

(as those discuss¬

ing banking often do mean) main¬

Institutions ;

virtually

needs

the

nitely not

Flexibility and Financial

aspect

retirement

A

tition, the economists would defi¬

II.

govern

seriously and with

financial

forces of

posit

re-exam¬

sykterii

intermediaries

performance would require that

ing role.

The financial sector of the econ¬

increasingly dif¬

consider

judged.

at

small

to

be

had much to do with their declin¬

exec¬

financial

financial

past and in the

at¬

resources.

Whifch the

upon

of

not be raised without

evidence

The

com¬

and

;■;<

deposit integrity is qnly one

standard

institutions.

utors and heirs of relatively

ive

But

real

is

*

and wherever

purchase

ficult, for instance, for the

or

enough.

concern

integrity

cial institutions; and "best" means
un¬

institutions,

credit unions

mutu

credit

re¬

to

bank

for
covered by

,

available

holdings.

been

connec¬

tion, it-is worthy of note that

the

depositors.

our

the

deposit

over

have

ready in

changing demands

become

to

have

during - prosperous times,

According

effective

the idea of service.

fulfill

to

and

principal

failures, both during "panics" and

be

concept

a

of

failure

socially-

a

deposit

there

needs mutual savings banks could

Closely aligned to the
ination

the

.

their

of

present, there have been financial

manner

of those

use

value

Because

'to

simply

rainy

all

of

growth

accounts\are

recognized right to the

hard-earned

economy,

such

for

of

holders

thought today to have

of

to

"mutual"

Greek philosopher Aristotle in his
of

integrity of deposit accounts.

institutions

financial

concept of thrift expressed by the
definition

types of

especially

The

loans.

small

testifies

The

it

should turn to the

we

op¬

ex¬

regulation is protection of

What

ago,

put

much

of

the

the part

on

of households for certain

financial

away

income.

would

of

is

economy

as

non-profit-seeking—

suggests unfilled needs

state

and

longer,

years

place

a

in

their

no

hundred

find

unions—also

we

attention

our

often

are

"mu¬

The rapid growth of credit

(2)

even

concept

our

help

of

is

the

of

maintenance.

need
out

are

must de¬

we

management

from mOney

most

there

savings industry,

our

and

money

projects.

that

me

re-examine

must

-

some

help substan¬

Eggers report, which

velop in

tual" institutions

ment

our

realistically

seems

growth of savings and loan asso¬

institutions.

can

recent

phenomenal

prepared to aggre¬

we

/

ciations suggests that these

de¬

tially to solve the problem which
Mr.

The

(1)

among

variety of

that

so

it:

given for this

reason

tensive

The

credit

mortgage

funds and to improve and

our

The

14

ments cast doubt upon

credit.

We must be

ices

increased

the

both

consumer

gate

Continued from page

these, these

should

banks

meeting

mands

,

must

we

form that service effectively.

cruise to

credit

purpose.

savings

banks

industry hold about 75% of

them.

profit-seeking commercial banks.

encouraged to increase th,ei;p loam-

need.

an

for

portunistic and enterprising as the

should

growth

projected

for home purchases.
as

not

are

savings

expected to

capabilities

highest standards of loan quality
and maintaining economical rates
We presently

demand

Especially

mortgage

State

York

the part

the

consider¬

banks >

mutual

New

can

a

create

vision

bold

opportunities for service and

our

York

credit

for

concern.

area

ticipated,

especially gratifying since

our

to

Federal

concern

and have maintained

savings deposits, the av¬
individual depositor cbuld

over

forward

note

McMurray,

cial banks were to succeed in tak¬

erage

to

Board

ing

look

sus¬

mortgage

that

Bank

expressed

procedures
and

"very

maintenance

large enough to

recently

establish

of

condition

remain inactive

small

some

accept
the

on

soft

gratifying

California

that

cognizance

suggesting

banks

accounts

that they
be

took

is

Joseph

man,

to

problem

It

Loan

ensure

this

currently

very

Home

cost of

ican

the

the

which

these institutions to

market.

resulting mainly from the higher
A recent editorial in The Amer¬

such

where the greatest increase is an¬

profit-squeeze Home Loan Bank Board has begun

savings and time deposits.

in

dollars

tain such rates, especially in view

that

and

certainly

commercial

to the long-term qual¬

less

$500

all

loans

the

of

raises

made by

than.

that

strable

particu¬

was

savings accounts with balances of
notified depositors With small bal¬

is

it

While

and loan in¬

certain

California and

on

will

assertion, but two recent develop¬

every, reason

The Interest-Rate

With

cluster

department stores, because

"How

under

demands

credit

in

XII

•

contrary,

to

customers who want service

He

resources.

question:

conditions?"

funds
V

tend

our

challenges, not our consternation.

the banks handle this increase

can

in

around

On the

stores

be

should

Problems

tory,

total

the

asked

cial

f

,

;

as

not

esti¬

in

bank

encouragement 4n

any

question

a

he

commercial

the

and

of

growth
increase

then

alone

de¬

or

market

stockholders

;v

this
57%

a

business.

stores

highly con¬

in financial his¬

troversial period

busi¬

for

-

Against
mated

building his small savings account

bank in its

its

credit.

ought hot to be inhibited

has been unsettling to the savings

decision

and, 66%

credit

sumer

out

of

vital industry, we are

a

credit, 88% for con¬

for mortgage

ness

do not put specialty

specialty

are

by 1970 of 100%

increase

of this decade,

advertising in New York

stance, told

projected

he

of

rate

grow

selves. One New York commercial

report, for in¬

marks

of his re¬
the growth

stores

course

end

actions of

annual

In the

that

will

toward 5% dividends in California

of the banks them¬

respect.

in

thinking

banks'

kinds

in

depositor

stage in their acquiring of savings
deposits is substantiated by the
some

mercial

of

ordinary

cance

That such

State

ably by the

the

commercial
bankers, might one skelter
jump in interest rates
fairly speculate from the very in¬ the

tensity of Mr. Freeman'5 remarks,

York

New

during the 1960's and of the com¬

sist

system to expand its share of the

savings

in

needs

ing

play and that their ability to as¬

"The profit

intenseCompetitive

an

and

well-reasoned

a

comprehensive analysis of bank¬

banks

savings

interest rate increase of 1062 sym¬
bolizes

delivered

department

Corporation,

Midland

Marine

the

aggregate

lending facilities which will result

savings- accounts

continues,

to* do

continue

as,may seek to skim

capital expenditures?"
Mr.

profitability is possible?

which

on

every

yield
enable

to

banking

even

in

"invested

be

average

of

excess

commercial

break

savings funds at¬

new

have

is limited to those large accounts

recently

Speaking

need.

of

times

We

can

deeply involved in a

retirement

to

ance

stitutions.

Time?

Banks' Posture at This

Thursday, November 7, 1963

.

could offer through

we

Finally,
What

savings

auxiliary

our

are

he would

but

very

businesses

thoroughly vindicated.

.

real help.

interest rate on his sav¬

no

probably be
paying a charge for reclaiming
this development which we have
portions of his savings at various
just described good for the public
opinion, it raises the question, "Is

departed during these

controversial

hectic
will be

would he re¬

Not only

situation.

perhaps

give

our

principles from which

have not

we

expect within the

may

governing

For Savings

market.

overall weak mortgage

an

I think

.

a

highly

midst

of

r e e

important

firms.

highest number

the

of

independent

That

definition,

unfortu¬

nately, leads to

a

protection

relatively

cient

a

a

conclusion that

ineffi¬

poorly managed banking

or

firm

of

pos¬

banking

for

the

of

sake

maintaining

large number of separate insti¬

tutions

could

"maintaining

be

described

competition."

as

; On

the

contrary, in traditional eco¬
nomic theory, competition would

imply that
faced
firm

the
did

best

and

firm

every

threat
not

of

provide

products

cost, it would fail.

necessary

the

-If

a

latest

the

at

lowest

The survivors

would be those which
the

constantly

failure.

could meet

performance stand¬

enterprise

some

sible

ards.
Tho

,

rvnnflirt

hpf.u/ppn

.

arhtovin^'

standards
and main¬
integrity should

deposit

obviously

would

The existence
led to wide¬

innorcent depositors.

has

conflict

the

inefficient
penalize

of

Failure

clear.

banks

of two types:
First; inefficient financial firms
are
protected from the forces of
competition. This is done through
regulation

spread

limits
ent

business lines of differ¬

on

limits
interest

of organizations,

types

limits

branching,

on

on

permissible,

payments

The

etc.

is im¬

type of regulation

second

plied by the first; IF you are not
to r61y on 'competition to maintain
minimum

some

set

be

must

standards

other regulation.

ible

a

formance

on

the part of the finan¬

cial system as a

whole. They limit

of action for aggressive

the scope

make

it

and

bankers,

enterprising

in

ing institutions to recruit compe¬
tition-minded

personnel.

endangering deposit security, and
others

whether

cannot

made

be

stringent and more flexible,

less
with
the

the

objective

improving

of

of the financial

performance

system.

F

Financial

Flexible

iV

:

r

-

end of

tern

nature

of

decline

the

and

rate

the

strictions, etc.

the

time they increased

posit security.
The

flexible at

more

de¬

system today permits re¬
examination
of
the question of

principal

The

the

dangers

depositor needs protection against
today

il-

bad asset selection,

are

of

liquidity

overbanking,

assets,

and bank failure through inability
to

rigorous examination of each

A

that the present

restrictions go far beyond what is

For

instance,

tor

against

depositor security.
protect

to

"sour," effective

inspection

agencies

visory

of

out

and

requirements

capitalization

systematic

deposi¬

a

arising

losses

bank assets going

that

to

by

virtually

is

all

But existing stat¬

is needed.

institutions

acquire,

may

going to the extreme, in the case

borrow¬

the

in

—

while

mortgage notes,

allowing

other, form—deposit
various

a

intermediation, then, adds
of flexibility to the

financial system.

greatly

limited

financial intermediaries

when the

their ability to ac¬

in

limited

are

But the flexibil¬

is

added

so

,

of

rights,

life insurance, etc. Fi¬

great deal

ity

an¬

accounts

pension

kinds,

cash-value
nancial

who

those

hold their savings in

to

save

and

government

bonds,

corporate
etc.

of

form

cept accounts and to make loans.
maximum

For

it

flexibility,

is

essential that the financial system
as

whole

a

able

be

offer the

to

to the

zation

in

to the types

held

counts

flexibility

of deposit

the

by

mi gh t

public.

bring

ac¬

Such

radical

changes in the financial structure;
if

these

changes

did

their appearance would
that they are wanted by
Two other

occur,

be a sign

the public.

important aspects of

flexibility should be noted. First,
it should not be necessary for the
total loans in
the

total

that'

quick

one

area.

and

to be

area

amount -of

Flexibility

easy

fers of funds.

equal

saving

in

implies

inter-area

trans¬

Second, services of

established,

ally

into

But

cation.

these

allowing

even

be

tor

assets
and

ments

require¬

imply such institutions

loan participations,

services,

etc.

need for

They also suggest

flexibility

with

a

respect

privileges of financial
aries

to

offices.
on

or

acquire

present

one

state

to

branch

restrictions

these privileges differ

ly -from
as

open

The

the

to

intermedi¬

state,

so

and

wide¬

from

type of institution to another

.to

seriously

reduce

economic

would
-sponse

be

to

created

investments

should

be

offices.

for

institutions

for

same

should

should

they

all

stitutions.

reliance

statute, and more

on

those which

simply by

public demands.




re-

ual

on

formance,
able

evaluation

to

should

of

The

per¬

But if the

out

business

of

been

inability
thus

institutions into providing
ter product at a

involve

reduced

earnings,

some

threat

perhaps

basis

the

that

they

position.

.

Two Replies
two

are

:

of the

perils also leads to the con¬
that

clusion

they

very

are

un¬

evenly recognized in the laws reg¬

ulating

different

the

of

types

banking institutions. For instance,
it

when

the

is

most

institution

the

restrictions

greater

their basis in the

of

selection

These rela¬

savings bank.-

tively
tion

asset

to

comes

restricted

savings

original

■

replies

for

this

to

earnings is one

thing; the threat of failure seems

remote,

more

talization

especially if

requirements

are

which

that

implied

public policy.

extended,

mat¬

In the inter¬

a

integrity of

savings bank has

as a

it

tive.

branching

to

bank which is unable

a

compete can be and should be

matter of pub¬

There is

assets

no

and

should

than

restrictive

has

positor.
from

Unlike failures resulting

bad

asset

selection

longer

for

be

inability

compete

to

portunity
new

to

arrange

management

ership,

asso¬

or

or

for

recognition of dangers

appears

bank needs for liquidity.

either

for

f

'

Suggested Reform

■

In sum, a

in

The ob¬

bility
cial

can

liabilities

that

the

very

assets

points

restrictions

little

to do

system, to the

benefit of the

public and of enterprising banking

without

sacrificing

deposit security at all.

No danger

to

depositors would result if these

needed

up

ers

in

jor

ivith

v

be added to the finan¬

steps were taken in

ing privileges, with the

to the compatibility of

'

great deal more flexi¬

York State: (1) Expanded

fact

,

new own>

vious fact that liquidity needs re¬

the

op¬

both.

institutions,

•Another example of the uneven

with

ment

with

as

to branch given

types

of

look

rules, includ¬

list," and replace¬
general

broad,

of the

rules

rules

any

on

institutions than

three

of

Abolition

(3)

other.

anyv

public and of current technologi¬
cal

now

are

greater restriction

no

possibilities.

Trim

a

A

from

lending

should apply to

estate

thrift institutions

commercial

to

than

nonreal

for

greater restrictions

No

purposes.

banks.

(4)
the

Removal

of

restrictions

on

payment

of

interest

deposit

accounts,

demand

on

time.

or

The

of the present re¬

purpose

strictions

Re-Exannnali.

New

branch¬

same pow¬

all three

limit

to

was

competi¬

financial

ible

Of course,

system.

of

tion

the

institutions.

This

of

York

New

a

Traditional

Slate

Bahamas, Oct.
«

able

f

lull

from
Y.

N.

the

Slate,

c n

a

to Nassau,
A limited num¬
are avail¬
Banks Assn. of
Ave., N. Y. C.

thd

of

study

Savings

Park

200

<n

70th
board

on

cruise

1963.

18,

texts

Sale"

Associa¬

released

held

Convention

Fall

the SJ5. R< tterdam
ber

Banks
and

Assrciation's

the

rf

occasion

Annual

Reynolds Sponsoring Life
Life Ins. Stocks Forum
NEWARK, N. J.,—ReynoMs & Co.,

this does not exhaust

the

in

associations'

loan

and

the

ability

to

deposits,

to

issue

and

the

maintain

must

Any

their

such

the

in

viding

lead

to

come

interest,

disincentives

and

results

other

have

Associates,

of market forces.

fit

of

to

the

the

doubt

should

the

pro¬

those
out¬

The bene¬
be

free

reflects the

market,

Inc.,

counselling

president

of

in¬

an

firm,

and

Investment

Mutual

Company of America.

Investment

Life

for

"Outlook

Stocks" will be Mr. Haslam's topic
for

the

evening.

address. /

"

question and

A

will

session

follow

•

his

v

in¬

which

than

been

and
Inc.

president of

also

is

Haslam

vestment

Form Annuity

perform¬

adequate

public

would

which

treatment

it does noneconomic in¬

as

centives

reserves

Shares,

Capital

of

accounts.

savings

unequal

with

terferes
ance

required

vice-president

Haslam,

treasurer

commercial banks alone

that

fact

banks

deposits or to
of

certificates

savings

power

savings

of

large

accept

as

mortgages,

out-of-state

acquire

such

on

on

Principal speaker will be John

Haslam

others,

limits

forum

a

Hotel,

Park

Military

Mr.

many

sponsor

Tuesday, Nov. 12.

There

are

will

life insurance stocks at 8 P.M.

on

the list of unnecessary restrictions.

unneeded

New York Stock

members of the

Exchange,

G.

given

ma¬

probably implies Federal charters

in

n

prepared for the Saviugs

tion; they have no place in a flex¬

the

rf Dr. Eggers study
New York State—

summary

Banking

"Savings

preventing thrift institutions

against

sav¬

more

powers

intrastate

answer
.

ciations. ;

force have

effec¬

time, permitting adequate

a

commercial

savings and loan

deposit

illi-

or

tively will be obvious years ahead
of

unlimited

ing the "legal

danger to the de¬

quidity, potential failure resulting
from

to give them

banks,

given to Federal savings and loan

stated

Second,

virtually all deposit-

why rules applying to

bank

to

were

as a

dropped; indeed,

institutions.

de¬

the idea of the de¬

years,

lic policy, to

and

capi¬
effec¬

no

been

banks

the

other, stronger insti¬

his account in

reason

reduced

threat of

will

Moreover,

tutions, with

as

protected against loss

ings

..

absorbed by

banks

positors in savings banks

been

to pre¬

public

savings,

ter of

diminished.

be

penalty

any

who rarely

voters

it

the next

or

~

same

will be ex¬

powers

each institution

on

pressure

have

concep¬

their

overbanking, the competitive

vent

practice

a

policy in Congress, which finds

the'rank and file of

savings

the

one

agencies

use

con¬

Analogous procedure has long

increase, next year's budget

portfolio eligibility

"trustees" for the public's

service

be

pected to

in

It's all bad business.

on

rigorous examination of each

knows, this has become

,

A;;. supervisory

Uneven Laws
A

considerably

./•

-

associations. (2) Abolition of strict

First, it is exaggerated. Because

.

par¬

individ¬

of

even

"banking is different."

There

that

own

bet¬

a

This threat is what most

vV-X'.';
►

those in their

lower cost, it must

perforce

often

them. The

in

conditions

the

or

or even

business

increases,

ahead.

financial

prod

to

successive

might deteriorate

common

from

ef¬

deed, if competition is to be
fective' enough

the

year's without too much risk of paying

In¬

depositors?

concluding

of

time

effectively,

compete

to

penalizing

the

at

might well change against

industry,

to

easy

of their

out

course

agreement that they would be

Chronicle.

of

instead

just

feel

wage

As everyone

banking system is to

competitive

the

long period, in

a

things might happen. Even if the

in this country, too.

flexibility to the system.

become

are

may

firm,

Einzig

price.

a

consider¬

add

Paul

to have

prove

siderably less than three years."—Paul Einzig in

supervisory agencies, and less on
rigid rules and more on a flexible
approach

en¬

ljable to de¬

situation,

ticular

prevent¬

In general, less

ing over-banking.

ex¬

spared

dispute.

wage

years

afford

to

general

agencies

be left the job of

heavy

conditions

of deposit in¬

types

be

uncertainty
are

long-term

able

the

be

Supervisory

powers

are

prevent overbanking!"

the

Yet

branching

legal limits on
on

the

estate, equities; and certain Other
and

too

employers

very

broad, limiting acquisition of real

assets;

are

these

to

annual

of which many

loans

both

late

efficiency by encouraging patterns
of growth other than

acquired,

cause

banking

as

correspondent

be

in

"Three

types of

on

of

not

accounts,- bank-by-mail

to

Limits

applications for the establishment

defended

cost

less

administered

be

order

advantage might

security, could be provided if
could

in

employers

velop, however, in which that

bility, and perhaps better deposi¬
these

re¬

,

similar

on

follow

to

Circumstances

retained, although more flexi¬

reject competition in banking be¬

banking

tailed

super¬

observers have in mind when they

positor's right to the

flexibility

and

increase

rthe bother and

loss

failure.

of

amples

Capitali¬

supervisory agencies have a com¬

vening

respect to their accessi¬

against

plete and absolute power to deny

ible with

These

because

unprofitable lo¬

an

financial institutions must be flex¬

bility.

result

unlikely contingencies* the

new

Many

visory inspections must, of course,

intention¬

do not

managers

move

un¬

where

would

simply

overbanking,

bank

or¬

branches

new

be

an

tempted

actually needed

requirements

an¬

white-

re¬

j.'-..

indeed quite simple.

are

The

authorities

ceived

In the first place,

establishment

their

ex¬

unlikely to be

are

and

to

reference

able to acquire assets without ref¬

to

likely

types of assets held, and,be

erence

but.

ganized,

desired

types of deposit accounts

by .the public, Without

banks

new

"le¬

portfolio

substantial increase, to be

a

employees of Local

Government

by the danger protected and restricted, isn't there
a clanger that banks may be forced

ample is provided
of overbanking.

Another

collared

are

make the
no

installments.

terms.

fewer

depositors

super¬

eligible securities.

by

protect

potential perils must lead

for

banks

can

spread

Quite recently the workers of the build¬

applied gradually in three
nual

increases

wage

is becoming increasingly adopted

ing industry received

institu¬

loans, have

mechanically.

compete effectively.

of these

of

The restrictions

greater strength of the fi¬

nancial

rity.

in Britain.

as

Flexibility Desired

':;"■■■■;

-

savings banks, of providing lists

instruments

commercial

practice of granting
several years

over

higher turn¬
thrift

at

restricted,

gal list'? and

of

ing .to create them, in one form-

But

least

system

many

cf

financial

than

financial
same

"The

re¬

very

accounts

consistently

most kinds

for

they allow those who create new

is

checking

bank
assets-r-were changes making the
markets

various

of

a

over

tions.

unit

the

that

intermediaries

financial

of

have

sys-'

bank, and the development of sec¬
ondary

most

ings accounts at commercial banks

financial

the

of

the

the

as

specie system, the greater

a

integration

be

demand deposits and because sav¬

today—such

unlikely

commercial

needs,

would

and before

panics of the 'thirties
so

which

system

repetition of the financial

a

liquidity

Bad Business!

were

related to ac¬

way

a

27

needs for

restrictions

stricted, both because of the

utes limit the types of assets that

System'

social function

essential

The

financial

the

in exist-; necessary

of the regulations

cannot be abandoned without

ence

in

up

banks

of the changes

many

to the conclusion

It is, well worth asking whether

some

Indeed,

make

difficult for bank¬

more

If

tual

responsive financial sys¬

and

tem.

various institutions'

drawn

objective of a flex¬

fict with the

(1823)

liquidity.

what is needed for deposit secu¬

necessarily

lower standard of per¬

make for

.

by law or

'

s

regulations

These

and

performance

the

Deposit security need not con-

high performance standards, then

,

The Commercial and Financial Chronicle

.

.

Deposit Security

competition

taining

of

.

performance

high

through
be

Number 6314

198

Volume

since it best

current wishes of the

Plans

Inc.

offices
engage

Officers

in

a

are

formed with

been

has

1406

at

Plans

Minn.—Annuity

MINNEAPOLIS,

West Lake St. to

securities
Henry

L.

business.
Bardin,

President; Herschel L. Wilson,

Jr.,

Richard

J.

Vice-President,

and

Williams Secretary
Mr.

Williams

Edline

was

Williams

&

and Treasurer.
formerly with
Associates.

28

The Commercial and Financial Chronicle

(1824)

Continued from page

16

Shutdown

at

an

adjacent

Body plant

was

forced to close; a

week

earlier,

Abroad

pat-:

the

with

Norwood,

Steel Protectionism Mounts

year-end

conventional

the

Along

INDUSTRY

STATE of TRADE and

Fisher

combination

a

In

tons, they'll be the largest of any

Iron

November in the last seven years.

.

7

Thursday, November 7, 1963

.

perienced during comparable
riods in past years.

pe¬

although
net

a

.

fell

Week's

Lumber

Output

1.6%

Above 1962 Rate and Up

Chevrolet-Buick-Oldsmobile-Pon-

special report from Europe,
Age said that a weak steel

million

.

there's

If

it will

reach

they

market

a

seasonal

downtrend,

Ship¬

reasons.

ments will undoubtedly decline

partly because

December,
that

taxes

states

some

inventories.

yearend
Mills

production

at

S te

the

as

same

ingot

tons

Last

From

the

industry

The

1.2%

fell, reflecting

Yeck

After

further

holding

ity

posite
steel

No.

on

1

down

was

heavy

$1

a

com¬

profit

ton to

gross

accompanying

improvement

in

steel

undermine

the

into

industries

steel¬

Capital

Sales
In
for

fact;

Equipment

Prospects

depreciation

than

more

to

billion

$2

guide¬

a

The

improved

to

sectors

of

dustry

the

by

in

boosting

are

all

Replace

old

and

better

newer

capacity

may

significantly, it will

efficient

more

capacity.

>

In
end

now

in

inventory liq¬

sight, Iron Age

that

steel

inventories held

the

by the

industry will be normal by

the end of

December.

of

pace

is

auto

After that,

sales

the

and

level of the national economy will
dictate the strength of the steel

market.

7

of

now

ordering at nearly 100%

need.

Others will have

steel cleared up

vember.

excess

by the end of No¬

December should

the

see

cleanup virtually complete.
recent

vidual

for

days

mills

has

December.

.

their

Some

forecast gains of

as

sights

mills

high

as

now

15% in

automotive tonnage for December.
But Iron

big surge
duction
year:

are

Age cautioned that
expected

The

no

cutbacks

buying

are

in

construc¬

overdue and

warm

and

dry

Un¬

weather

throughout most of the nation has
held up production of construction

steels

probably

a

full

month

longer than normal.
But

the

styling

a

body

chrome

Output 8.3% Higher

Than
7 Auto

output in the U. S. during

October

to

rose

month,

any
n

record level for

a

expected,

as

of

wave

test

to

On

strike

'64

despite

threats

model

sudden

offsetting

negative ; seasonal
factors in the steel market.




the

below

corres¬

1963,

26,

estimated

are

proximately
of

car-

at

billion,

13.8

6.5%

ap¬

corres¬

1962

The

62

class

reported

with

cars

tainers

one

Oct.

included

19,

distributed

in

that

This

was

carsv

con¬

the week

in

(which

week's

were

over-all

increase

an

9.4%

or

16,918

cording
kwh.

week

the

above

of

of

1962

and

along

Reports

said

794,015-unit level

reached

March

in

industry's
unit

bid

production

of

for

1955.

The

800,000-

an

month, 'however,

appeared

thwarted by strikes at two major

assembly
The

plants.

29.8% above the 1961

1962,

did

set

automotive
Ward's

peak

new

a

production,

said

in

however.

139,400

some

peak

Ward's

trucks
151-

was a

(dating to 1951).

noted

that

with

sub¬

of North

S.

last

passenger

week,

cline

units,

—

an

production

car

however,

to

gram

in

was

estimated

with

compared

de¬

176,278

the

year's

did persist 8.3% above 162,-

cars

made in the correspond¬

ing period

a

year

which

five-day
UAW

for

cars

had

strike

received

notice

International

hit by a walkout

a

23,

the
was

week ago last

in '64 of the

source

car,

from

Oct.

a

the strike has thus

far set back schedules at the plant
about
4,000
units.

Additionally,

Chevrolet

previous

17,261,000,000 kwh.
16,247,000,000 kwh.
1962

corresponding

week

this

vealed
load

summer's

past

generation

kilowatts

the

Truck

in¬

an

or

cars

46.7%

or

/ 77'

;

Tonnage

Up

'777;'.7,77

1.2%

in

Over

than

more

tonnage

ahead

of

volume

the

responding
American

26

week

the

the
1.9%

the

the

Associations
tonnage

volume

was

the

for

year.

truck

tonnage has

gains

on

Since

late

been
16

June,

ahead

of

shown

steady

year-to-year

a

the

the

appreciably

last-

19

week

weeks

re¬

These

findings

are

based

on

ttie

conducted by the ATA De¬

in

toll

1939

to 318.

came

liabilities

and

GMC

made at this plant.

trucks

are

the

for

increase,

rising

slight

in

235

to

week

prior

from

but

staying below the 277 in this
group

other

the

large casualties with

losses of $100,000
39 from
in

44

dipped

more

or

week earlier and

a

1962.

The

manufacturers

among

from

62

last

53

week,

wholesalers to 35 from 21,

and among

service

concerns

fractionally

slipped

to 34

casualties

Construction

27.

31

44, while the week's only notice¬

flects

tonnage

The

report

handled

at

more

400 truck terminals of
carriers

mon

of

re¬

com¬

freight

general

terminal
showed
a

year

increased

ago

at 24

last

points reflecting decreases

centers showed increases

while only

reflected

a

one

of

10%

terminal

decline in

excess

7-

of this amount.

week,

10

metropolitan

areas

registered

increased

nage,

while

areas

decreases.
is

24

ton¬

reported

The week-to-week

consistent, with

equalled

that

trade

or

groups

exceeded

or

last

7-7v;-.-7 '

year.

■/

Wholesa'e Commodity Price Index

Fractionally Higher This Week

Inching

up

during

ally

wholesale
stood

at

and down fraction¬

the

past

commodity
268.32

Dun

&

this

week,

price

level

Monday,

Bradstreet,

the

Inc.

pressure

in corn and wheat quota¬
a

exerted

upward

longshoremen's

dis¬

pute lent uncertainty to lake ves¬

de¬

sel

ex¬

sell-off

movement

in

per

and

with

grains.

a

It is not

index.

is

the

a

chief

Its

show

to

trend of food

general

prices at the whole¬

-

Weather Still Pares Gains

in

Retail Purchases

While
stifled

apparel buying was still

weather? •> healthy

automotive

and

goods

stretch

prolonged

the

by

unseasonal

ac¬

tivity saved 'over-all sales in the
ended

from

Wednesday

Oct.

snuffed

being

Rain

Monday
time

age

the

in

North

30,

out

in

East

purchases for
months,

were

on

of life

spark

a

gave

in'

rainy

the

but

to

first

the

too severe to encour¬

shopping in general. Retailers

basked in the

in Portland, Oregon,

rarity

Nation-wide,

volume.

model

1964

for

zest

gained momentum,

equipment

and pre-holi-

already

helped

promotions

day

for

and

cars

entertainment

home

soaring

and

air

frosty

of

fallwear

thriving demand for housewares.
total

The
tail

dollar

of

volume

re¬

ended

week

the

in

trade

Wednesday ranged from 2 to 6%

than

higher

last

to snot estimates
&

levels by

1962

Regional esti¬

comparable

from

varied

according

year,

collected by Dun

Inc.

Bradstreet,

mates

the' following per¬

centages: West North Central —4
—2

South Central
4-3;

+2; Mountain —1 to

to

Atlantic

Middle

New

+4;

to

0

Central

East North

and

England

4-2 to +6; South Atlantic

+3 to

4-7; Pacific +4 to +8.

Decline

Sales

resulting

Consequently,

Store

Department

Nationwide

3.0% Below Last

Year's Level

Department

sales

store

on

a

country-wide basis as taken from
the

Federal

dex

were

week

ment

Board's

Reserve

in¬

for the state¬

down 3%

ending

26

Oct.

com¬

pared with the like period in 1962.
The
week's
decline
below
the
year-ago

the

marked

week

first

reversal in total department store
sales in the past 23
the

buying

but

price

foodstuffs

general use.

function

12

re¬

Export
tions,

the

of

raw

cost-of-living

re¬

1962 levels, whereas in

industry

ported

Compared with the immediately

preceding

below

tonnage

localities,

from the 1962 level. Two trucking

more,

ran

tolls

for

survey

In both

tailing and construction, mortality
other

throughout the country.
The

down to 114 from 134.

represents

from

40

to

able decline occurred in retailing,

Economics.

Inc.

to 0; East and West

toll

climbed to

from

the

On

ago.

year

a

hand,

port

cline

of
in

meat

un¬

246

among

weekly survey of 34 metropolitan

busi¬

fewer

than

accounted

$100,000

week's

43

level

10%

succumbed

Failures involving
der

and the 344

year

when the prewar

from

in the compar¬

last

Some

1961.

nesses

to

ported.

areas

dropped

320 occurring

the

after
the

week ago, casu¬

alties

basis.

1962

to

a

tonnage

truck

of

close

1962-1961 levels

size

For the fourth consecutive week

However,

Inc.

relatively

running

$5.88

Bradstreet,

&

total

sum

pound

ume.

ures

Bradstreet,

of the

comparison with year7earlier vol¬

Slightly

cor¬

1962

of

Truck

below

in

was

in

Trucking

announced.

2.1%

Edge Up

Failures

week

ahead

Dun

week

Commercial and industrial fail¬

in

truck
Oct.

'■

the

than

generated last year.

able

Row

a

ended

area

The

home

that

1.4%

com¬

this

Whoelsale Food Index

projected at 922.9 bil¬
7.3%

levels,

week

ago.

,year

winds

172,990

Intercity

or

pushing

is

or

consecutive

1962

preceding week, reported Dun &

cars

week

week

parable

of

kilowatts

fifth

rainwear

Gain

from

the index has exceeded

corresponding period of

'

•

than

the

electric energy output

1963

when

re¬

1962.

of

lion

previous

since July 23

now,

Moreover,
in

1963

0.5%

This peak had

the year's record of $5.98 was set.

peak

greater

summer

of

Food

advanced

been touched in any

million

160.2

of

7.5%

was

for

that

Institute

the

by

survey

Inc.,

sale level.

year-to-year gain of 7.4%.

a

A

molasses

compiled by Dun &

Bradstreet,
not

Index

High

Wholesale

to $5.96 on Nov. 5.

edged up to 285 in the week
ended October 31 from 279 in the

76,275

and

with 10

ago.

The Chevrolet plant at Norwood

(Ohio),

the

1,210,000,000 kwh. above the

the

Price

coffee,

the

Index,

13.4%

of

corresponding period in

in

Electric

196,000,000

was

than

total output of

1963

'

has

Output

more

of

substantially higher

for

prunes,

Price

ac¬

Edison

the

partment of Research and Trans¬

in the month.
U.

644,449

of

i96i.

out¬

and trucks in the

produced in the month

put

weeks

42

above the

:

cars

17,457,900,000 kwh.

piggyback loadings

first

previous week of this

statistical agency said

put of both

month

the

above the

passen¬

output in October matched

es¬

Business

crease

de¬

Boosted by

quotations

a

was

to

Food

Fifteen-Week

1963,

cars or

pro¬

production

light

electric

the

industry for the week

Institute.

or

energy

Saturday, Nov. 2,

timated at

in

electric

of

by

power

ended

week.

for

amount

the

7

For

1962 Week

Over

The

a

below

comparable date

Wholesale

218,995

227,158

,

Electric Output Shows 7.4% Gain

revenue

highway

or

1963

corresponding
3,885

236,023

and

piggyback

more

1962

213,252

week's total of

railroad

S.

loading

or

(piggyback)

ended

1,452

U.

I

originating

Oct. 27

1963

248,744

7.2%

and

1961.

Oct. 19

241,651

—

268.28

month ago and

a

the

1962.

and

/ 228,131

/

ponding week of
over

in¬

an

the

over

the

230,878

___

orders

and

by

generated

of

Mon¬

on

from

4,

but remained

the 269.66 of

week

22,968

Last Year for Fourth Weekly

quickening of Chevy II
more

of

for

239,172

___

.

Shipments

earlier

Commod¬

to 268.32

rose

November

week

in

figures

feet

1963

in

loadings in the week ended Oct.

preliminary basis, Ward's

a

Automotive

787

1.6%

or

ponding week in 1961.

totaled

Year-Ago

1

Monday. Sole

automotive steel buying is
than

from

more

and pro¬ higlv of 181,240 assemblies of the
through the previous week. The week's pro¬

just starting to show up.

usually

larger,

in shipments

is

tion steel

apparent

are

to

cars

decrease

a

3.5%

or

total).

American-type ve¬
caused indi¬ hicles pressed near
1,000,000 units

raise

to

but

cars

9,949

day,

rose

an

the corresponding week

1962,

sidiary operations in Canada, out¬

The fresh flow of auto business

in

of

board

liberal

on

shipments

the

are

of

Oct. 26

New

represented

pro¬

weeks indicated:.

trim.

month
Iron Age said some automakers
are

volume.

that

away

Week's Auto

the
For all intents and purposes, ex¬

auto

handle

trends

ger par

magazine reported.

cess

increase

mands.

Sight

of steel

uidation is

eight-hour

and

with two actual walkouts in

End of Steel Inventory Cutbacks

The

days

ten-hour

Following
thousands

slow demand at

a

Daily Wholesale

269.73

orders

new

The

ity Index

Hits

of

1%

of

preceding week.

loadings

highway trailers

working

movement

a

and

of doing things.

over-all

be raised

not

be

the

The

orders

Saturdays to meet dead¬

equipment

gain the advantage of
ways

below

Cumulative

and

Although

giant

production

and

prominent bumpers and

in¬

object of much equipment

buying:

five

new

equipment funds.
The

the

I
are

on

Two

profits

firms

metalworking

also

are

7

lines and to

aftertax

reported

the

make

for

The flow of

design

Shops
shifts

industry's cash flow.

being

in the works

of

decrease

a

latest

Lambs

receipts.

7

Production

crease

fixtures

auto

shifts

year

indi¬

shops

was

the

1.6%,

and

announced

three-tenths

cars'or

months in advance systems
production is a good indicator traffic

adding

be

Age

Railroads
This

31.

in

totaled

26,

Association

the

cars,

many

trends.

investment tax

estimated

are

Iron

tooling shops

makers.

placed
of

credit

are

auto

of

7%

big changes

and

is the best it has been

the

die

These

,

7^77''7:

new

and

tool

dies

Steel said, the climate

and

negotiations,

Iron Age said a survey of auto¬

in general

The

upcoming "Kennedy" round

motive

in

lines

effect

for 1965 models.

selling equipment to industry

years.

Oct.

Oct.

in

change.

climbed

12.1%

rose

10.3%.

freight

revenue

Ton-miles

cates

makers with capital equipment.

of

Week's

Ago

ended

week

1,599

said.

over

supplying

Loading
the

above

GATT

Year

1.2%

rose

Compared with 1962 levels,

and.Carloading

Ton-Miles

Exceed

and

within

harmony

output

week-to-week

duction

Rail

the

industry should splash

Optimistic

European

Community,

It will not be without its

of

optimism

Steel

and

Euratom.

on

The

Euro¬

melting

$26.

the

decade-old

the

of

Coal
even

straight weeks, Steel's price

of the

Motors,

1.2%.

Studebaker

and

said this could threaten American

Common Market, the stabil¬

nine

for

5.7%,

624,581

integration

American

Brazil

rose as

retail, and hogs declined

was

Chrysler

30.3%;

Ford,

13.2%;

Corp.,

West

7 ^;

Iron Age

pean

market declined last

scrap

week.

(Ga.)

expected to account for

was

49.6%;

down

of expansion of

rate

the

capacity.

that

poured last week.

plant at Doraville

said.

slow

a

European industry in the face of
continued increases in world steel

62%

above

1,920,000

in

this is

with

Age

Iron

good,

but

Joined

be about the

estimated

V

e

thing

on

of unofficial capacity. Output this
week is expected to

growing, and profits are any¬

are

V

rate

a

weak, production is

are

off, wage costs are rising, imports

of the

maintaining

are

Prices

in

levy

tiac

Corp.

of the

holidays, but also because

a

struck.
Strike
votes
have
been
Lumber
production
in
the
return taken at 18 more
Big Three plants country totaled 230,878,000 board
of protectionist sentiment among
over
feet in the week ended Oct. 26,
"production standards."
some
of
Europe's leading steel
Of car making last week, GM according to reports received from
producing nations.
regional lumber associations. This

in December and for

come

strictly

5.8

Coffee

began restricting exports.

market there is leading to a

If

tern.

wheat

the week,

for

slightly.

and oats made

rye

corn,

gain

Atlanta,

only

Kansas

Francisco

San

forged

last year's week.
index
ment

8.2%
In

without
reveals

from
the

last

weeks. Out of

Reserve

Federal

districts

and

City
ahead

of

The weekly sales
seasonal

sales

were

adjust¬
down

week.

four-week period

ended

Volume

Oct.

26,

Number 6314

198

gained

sales

1963,

last year's level

over

the

period for

parable

for the

country's

leading department

12

tricts.

2%
com¬

store

dis¬

So far this year

(Jan. 1 to Oct.

26), the 12 department store dis¬
retail

4%

creased
rung
a

dollar

volume

(adjusted)

in¬

>

that

over

for corresponding period

up

According

Re¬

Federal

the

to

department

System,

store

Federal

York

New

Re¬

sales

in

serve

District for the week ended

Oct. 26 fell

parable
and

The Commercial and Financial Chronicle

.

retail

dollar

A

below the

1.0%

however, 2% com¬

up,

pared to last year's four-week pe¬

5% since the

riod; They were up

beginning of this year compared
to the same cumulative
1962. Within the N. Y..
tan area,

period in

Metropoli¬

however. New York City

department store sales for the Oct.

26-ending week were down 2.0%
from

the

year

ago,

compared
No

corresponding period

much

2.0% below total

were

only

week.

year-ago

to

4%

week

last

N.

vealed

sales

figure
from

facts

last

broader

passing

data

retail

the

put

•

sales,

of

Bureau

the

Week last

year-to-year ' contrast

.

.

emotional

on

bones,

by

big

/ >.

'

spending, will provide

life

happy

for

central

spending

all

and

safe and

a

the

in¬

poor,

cluding the lazy. He doesn't admit
that

first

the

He/is

-

be

must

money

taken from the

people themselves.

capable

quick

of

anger.

Alexander
a

variations. V

'

;■

stripped to the

that

is

tail sales data
seasonal

v,./

'■

old

the

Should you mention that, after

not adjusted for

/

■'

and

groups,

against

■

SECURITY TRADERS ASSOCIATION OF NEW YORK

and

weaknesses

minority

ment of Commerce's over-all re¬
are

/

facts. He must

.

the

an

on

demands

and

votes

government,

showed a

statistics, the Depart¬

NOTES

NSTA

political

those

His basic theme,

gain of 4.0%. Unlike the depart¬
store

for

prejudices

bare

The
the

for

latest: four-week

ment

facts

.

on

the

year.

affable,

is

order.

26-ending

Oct.

have

campaign

level

of

the

com¬

week's sales unchanged from the

comparable

.

appeal,

encom¬

Census, U. S. Department of Com¬
merce,

who

desires
of

set

total

by

-

.

depend

period.

year's

dislikes

intellectual

re¬

decline

3.0%

a

four-

flash

C.

from

to

seems

typical Liberal

opponents

from

The

r.

June

Y.

rise

tax

country

distinctly

have been in the ab¬

the

of

shoulder

smiling, and not too profound. He

higher the New York City

sence

cold

a

middle class left."

a

The

surmise, however, how

sales might

A

the

to

can

a

and sales in the latest

four weeks

one

met

"Our

minus 3.0%

a

29

his constituants sighed:

New

for

figure

(1825)

left-winger whose latest brain

child

York
City's sales for the Nov. 2-ending
flash

week's figure piled

year-ago

were

comr

A

the

from

volume

period.

year-ago

3

year ago.

serve

.

sales week revealed

■

tricts'

.

Hamilton

did

system,

broad,

financial

all,

com¬

prehensive and minute, which
dured

the

over

he

years,

Salvatore J. Rappa

H. Serlen

Lewis

evolve

en¬

may

flush and snap that this is not the
Puritan age,

Confidence in Government...

Continued from page 11
the

leaving his post

?

restrictive

highly

ments. Cumbersome

Key to Progress

amend¬

requirements,

clinical investigation regula-

new

tib'ns,' ? vastlyr increased
combined

to

result: One

big

-

all

costs,

unforeseen

an

by one the drug firms,

small,

and

sheer

bring

forced

by

sense

were

to

goodbusiness

sharply revise current and future
research

public health.

to

will

now

and

life.

Since

pling

advertising

and

product is
new

longer market

a

of

much less

on

suffer,

possibly even some Congressmen
whose lives conceivably could be
lengthened

by

drugs

covered. Everyone

an

socialist

their

and

abroad,
of

deficits.

He

when

capacity

of

is

planned,

and

trolled

disposed

boast¬

as

fully

con¬

by

gov¬

of

"Now,"
"do

asked

the industrialist,

wonder why that indis¬

you

factor

pensable

public

of

confi¬

slipping

slipping

...

become

has

a

guess

political tides?"

tile

society

business

mended
ment

trade

a

quick

a

deceit.

main

of

means

bolstering

optimism overnight,

of

group

ticked

He

recom¬

to

end

the

off

some

Dollar

depreciation that dimin¬

the

of

value

fret1

and

no

end

economic

philosophies of administration ad¬
close

others

and

visers

White House.

to

the

to

as

Gross misinformation

.

.

.

actual

the

requirements

foreign aid and defense.

it

at

Socialism

of

Matter

A

"Look

this

way,"

bedding,

a

corporate head. "Let's say you are

president

of

company

with

giant

a

an

industrial

army

worker and business.

public

the

.

.

policies involving the cor¬

future

porate
to

Professor

who

others

suddenly add
Professor Arthur

you

team

your

Schlesinger,

Walter

Dr.

John

Heller,

Galbraith,

sneer

at

'Puritan'

and
fi¬

a

twinkling the sharehold¬

Democrats

ers,

and

incomplete

with

\

programs.

A

flicker

Republicans

of

the business

Franklin

Roosevelt, Jr., or any of a score
like

our

ness

;

you

would lose

Now isn't
government as important to
taxpayers as any single busi¬

your

the

thinkers,

corporate scalp.

unit?"

He went

ing

to

say




:

/

women

are

People

that before

actually

policies,

would

the march.

on

young

men

and

disturbed

and

angry

the pressures of big govern¬

ment,

big

budgets,

deficits and

frightening

big unions. They

they

great

regard

body

attaining
of

many years

of ef¬

fort and sacrifice.
With

the

as

of

voters

and

clubs,

getting

illegitimate

more

children, more delinquents, and a
rising tide of chiselers.;
restive voters

These

ing there
in

dence

are

for

confi¬

and courage

most

man's

of

learn¬

indeed be confi¬

must

dence breeds courage,
one

/

,

government,

It

priceless

was men

in

wagons

white

has

an

ure

irritating grate in the

today, that extreme doc¬

when

registered abject fail¬
tried

in

other

lands.

who

continent

over

with

spanned

steel

with

created the greatest

rails,

the
and

industrial and

agricultural empire in the history
This

F. Hutton &

Gahan, E.

Weissman, Gold, Weissman & Frankel,

Sachs & Co.;

Goldman,

M. Gowen,

Term): Vincent

(Two-Year

Raymond J. Kiernan, Merrill Lynch, Pierce, Fenner

Smith, Inc.; Wilbur Krisam, John C. Legg & Co.; and Daniel D.

McCarthy,

Eastman Dillon,

Union Securities & Co.

Committeemen:

National

John

S.

Lee

Barker,

Higginson

Corp.; Samuel F. Colwell, W. E. Hutton & Co.; and Edward J.

Kelly, Carl M. Loeb, Rhoades & Co.
National

Singer

Committeemen

Michael J.

John

Hill, Thompson
Securities

Alternates:

Walter Filkins,

Troster,

W. C. Pitfield & Co., Inc.;
Heaney, Michael J. Heaney & Co.; Samuel E. Magid,

Co.;

&

M.

Fitzgerald,

& Co., Inc.; and Walter F. Saunders,

Corp.

>

,

Dominion

/ /

Selected):
Doherty,
Fahnestock & Co.; Richard H. Goodman, Shields & Co.; E. Michael
Growney, Gregory & Sons; Walter V. Kane, Shearson, Hammill
& Co.; Paul J. Lane, Kidder, Peabody & Co.; John M. Mayer,
Merrill Lynch, Pierce, Fenner & Smith Inc.; Herman D. Meyer,
Wood, Walker & Co.; Barney Nieman, Carl M. Loeb, Rhoades &
Co.; G. Harold Noke, Francis I. ;duPont & Co.; and John D.
Nominating

Bernard J.

Committee

(Four

Members

To

Be

Conlon, B. J. ,Conlon & Co., Inc.; William M.

Ohlandt, New York Hanseatic Corp.
Members

of

Nominating

the

/

Committee

Were:

Elbridge H.

Barbier, G. A. Saxton
& Co., Inc.; Thomas Greenberg, C. E. Unterberg, Towbin & Co.;
William J. McGovern, Blyth & Co., Inc.; John J. Meyers Jr., John
J. Meyers & Co.; George L. Collins, American Securities Corp.
Smith, Stryker & Brown, Chairman; Leslie

and

.

Joseph D. Krasowich, Gregory & Sons, alternates./

achievement was
handiwork of big central

mighty

the

not

T,

//

vDirectors

of the world.

government. There were no "plan¬
of

down

breathing

men

long

world of

ballooned

canvas,

James

V. Torpie,,Torpie & Saltzman, Inc.

Inc.:'.

sprawling plains

who crossed the

that

flamboyant gospel of 30

of courage who built

villages and towns and cities,

our

—

.

public

youth

more

crime,

more

free

years

1964:

/■.

Secretary—James

are

that

government;

while the nation is in fact

realize that thinking does change,
the

candi¬

following

the

/- ./:/

Vice-President

Treasurer—Bernard

&

however/

social workers, more

ners"

tinge of panic Liberals

a

provisions,

Vice-President—Salvatore J. Rappa, Mergott, Rappa &

Co., Inc.

a

broader perspec¬

a

good

housing

are

by results in world
so

these

re¬

confidence,

convinced,

are

a

more

by

joining the cavalcade.

are

Nominating Committee for the following

with

accordance

First

they are weary of the shrieks for

is

the Rise

hope is found

of

number

trines have
on

for

sums

indisputable. A surpris¬

are

affairs after

of

on

state

public

which

They

Stub¬

.

fraternity in the fact

disillusioned

could add 'Soapy' Wil¬

Bowles,

..

•

that conservatism is

Signs

the

duty of the Nominating Committee

Officers, four Directors, eight to 15 can¬

President—Lewis H. Serlen, Josephthal & Co.

//

re¬

possessions.

Before you

Chester

.

.

Conservatism Is

alike, would be down your throat.
liams,

Mislead¬

unwanted and uncalled-for farm

over

nancial thinking.
"In

.

to

of stock¬

holders. To help fashion vital eco¬
nomic

Abet¬

alike

destructive

bornly squandering huge

said

....

.

of

ting unions in preserving feather-

ing

;.'/'f;/,,

In

business

magic key to progress.

publicly held

unemployment figures.

'

full

tive

some

that

nothing
factor

ishes

the

be

Co., Inc.

abrupt

no

welfare

of

store

funds, savings accounts, and

leaders

feel

them

realistic

anticipate

versal

the like.

political

thus

Perspective

Meantime
leaders

the Federal
Bar Association in Washington.

the

who

govern¬

of deceit:

areas

Weissman

Association of New York, Inc. is quoted

dates have been nominated to hold office for the year

Second
Voters'

one

Bernard

three National Committeemen and five Alternates."

year,

cold and hos¬

made

has

Torpie

rejected."

the Pharmaceutical Manufacturers

Business

didates for

rehabilitate

lads
a

shall

to nominate five

•

•

demand

may

to

high-spirited

fast

over

•

dark side

on a

Liberal

sin, charging that

education and pen¬

before

•

Government Deceit
As

Security Traders

"It

spend¬

on
.

appropriation

sion

Association,

the

street

James V.

herewith:''

"If the parson's daughter is as¬

policies,

subject

economist

solely

saulted and stabbed

the

to

as

James T. Gahan

Sophisti¬

an

.

slipping? And why projecting the
future

who fashion

of international repute, has a one-

an

dence is

anger

"slick-

the

The

Liberal, said

track mind bent

by Dr. Austin Smith, President of

the

on

with

the New

ing.

ernment.

planned

Economics.

The

industrial

the

that

report

bristles

on

his

denounce

perpetual

disparage

they

advise

government bonds, life insurance

imposing

who

doctrine

cated

reported

was

falls

profes¬

of

sional, orthodox economists, here

Galbraith

one-fifth

hat

a

dislike

and

ing,

econ¬

be

body

large

wit university boys"

still undis¬

should read the

special

very

that

14% of the economy. In America,

chief

will

public

the

His

government had nationalized only

a

aided,

and earnings increased.

Only

audience

old

an

are

Indian

sam¬

than

profit margins

one,

of

amount

the

de¬

energetic

existing drugs,

having

are

the

on

more

merchandising of
which

Drug firms

concentrate

velopment

India, Professor Galbraith told

nu¬

projects of immense prom¬

merous

ise

dropping

programs,

ambassador to

as

might

check boy.

upon

The Magic

that in today's

Hamilton

omy

fired

with

every

no

no

economics.
America

was

a

dream, and they

made it come true.

With

Parker House Branch
SHERIDAN, Wyo.
House

into
opened
up-side-down

reaching

fingers

pocket;

the necks
spirit of

There were

enterprise.
tax

the

of

Billings,

a

branch

—

The Parker

der

the

Managm't

Wis. —Russell

Montana,

has

Long is now connected

in

the

ard F. Emling

office

Redle-Wolf-McEwan Building un¬

of

management

Evangeline.

Emling

WAUKESHA,

Joseph

ciates, Inc.
many
PiprpfV

.

years

W.

with Rich¬

Management Asso¬

He was formerly for

with Merrill

TTpnnpr

&■.

Smith

Lynch,

Inc.

30

The Commercial and Financial Chronicle

(1826)

.

.

Thursday, November 7, 1963

.

/

•

■

•

The

Indications of Current
'■

„'

Week
Latest

■

■

■

AMERICAN IRON AND STEEL INSTITUTE:
Steel ingots and castings (net tons)

based on

of production
1957-1959

Index
for

-—Nov.

7

2

101.1

oil

Crude

stills—daily

to

runs

AMERICAN

95.4

Finished
Kerosene

(bbls.)

(bbls.) at
(bbls.)
(bbls.) at

oil

fuel

Distillate

at—

Residual fuel oil

oils

Unfinished

0.625

0.615

7,608,260

7,610,110

7,578,410

25

OF AMERICAN RAILROADS:
freight loaded (number of cars)
freight received from connections (no. of

8,663,000

8,432,000

8,498,000

Revenue

30,790,000

3,093,000

2.731,000

3,425,000

14,416,000
4,579,000

14,344,000

14,532,000

13,881,000

4,168,000

4,883,000

Bituminous

anthracite

Pennsylvania

4,887,000

178,089,000

*179.234,000

182,227,000

37,102,000
185,886,000
52,941,000
83,801,000

*37,184,000

81,713,000

84,706,000

Federal

——

620,139

CASH

SYSTEM—1957-59 AVERAGE

Electric

427,000

—

(E.

PRICES

Domestic

397,000

—.

;n

Export refinery at
(New York) at

Oven

367,100

156,300

173.300

562,000

555,400

Consumer,

380,800

154,800

In

consuming

17,000

181,200

400,600

In

112

122

COTTON

Stocks,

116

17,261,000

17,106,000

279

287

6.368c:

6.368c

16,247,000

>

320

v-

6.279c

$63.11

$63.11

$63.11

$26.50

$26.83

$26.83

(East St. Louis) at
Aluminum (primary pig, 99.5%)
tin

Straits

MOODY'S
U.

York)

(New

—Nov.

at

at

1

Nov.

5

Nov.
—Nov.
Nov.

,

-—A

PRICES DAILY AVERAGES:
Bonds

BOND

COTTON
As

corporate—

Average
Aaa

r

-

Aa

_

-,

—

—

A

Nov.

_

3

I

Baa

Railroad

Group

N°v.
Nov.

—

Nov.
Nov.

Utilities- Group.

Public

Industrials

Grotip-

S.

Government

,'v

f

'

30.600c

28.350c
12.000c

28.400c
'

28.350c

12.000c

13:000c

13.000c

12.500c

12.500c

12.500c

23.000c

23.000c

22.500c

24.000c
r

5

88.40

88.54

88.54

5
5
5
5
5
5
5

91.34

91.48

91.48

89.78

89.78

89.78

corporate

88.54

88.67
84.30

90.21

86.65

86.65

89.51

89.51

89.37

Group

Utilities

Industrials

MOODY'S

3.96

INDEX

-

_

_

_

of

4.43

4.53

4.52

4.51

4.83

4.83

4.84

4.67

4,66

4.66

4.86

4.56

'

4.42

AVERAGE=100

__

_

_

17,249,000

*9,598,000

9,638,000

*7,586,000

7.611,000

$325,000,000

$311,600,000

63,900,000
13,500,000

65,900,000
12,400,000

12,000,000

,•

80,300,000

73,500,000

70,900,000

"

150,100,000

147,800,000

149,000,000

TO

LIFE

OF

July:

—

—;

*

OF LIFE

360,702

138,200,000

200,300,000

135,400,000

$824,900,000

$733,400,000

$5,048

^

*$5,134

$4,558

(000's' omitted):

623,801

610,968

453,263

——

PURCHASES

INSURANCE

INSURANCE

Ordinary
Industrial

*99.35

99.36

of August

:
r

Group
.-

:

—

:

INSTITUTE

—

Month

—

579

•_

TRANSACTIONS

ACCOUNT

FOR

sales

99.01

Other

sales

Total
Other

2,984,200

3;780,570

2,729,860
570,650

506,220

r

707,710

'

i

332,970

transactions

initiated

off

the

2,468,290

2,195,270

2,983,600

2,974,510

2,765,920

3,691,310

Oct. 11

832,200

703,620

Short

sales

Oct. 11

111,900

sales—

Oct. 11

737,270

572,300

Oct. 11

849,170

Oct. 11

1,334,265

712,910

92,200

Other

Total

sales

Other transactions initiated
Total

on

the floor—

sales^

Other

sales

Total

Oct. 11

.

sales

94,400 '

'

'

672,900

352,200

>664,500

767,300

1,091,960

210,910

112,942

890,625

1,139,261

sales

1,350,171

631,580

1,297,790

1,079,175

Oct. 11

4,632,345

Oct. 11

823,350

851,400

Oct. 11

4,297,520

5,120,870

3,658,195
4,509,595

-

-

5,924,584
1,013,020

2,459,313.

4,795,761

2,017,598

5,808,781

2,516,710

499,112

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

DEALERS

LOT

SPECIALISTS

AND

SECURITIES

—

Odd-lot sales by dealers
Number of shares

ON

N.

EXCHANGE

Y.

short

,

Dollar value
of

:

1,148,194

18,385

1,788,240

#91,681,548

$89,855,519

2,327,581
$117,136,733

56,038
1,092,156
$52,275,401

701,160

625,750

926,240

411,050

Oct. 11
Oct. 11

,701~160

625~750

926~240

4~li"050

Oct. 11

395,140

357,500

425,430

259,830

SALES

ACCOUNT

OF

THE

ON

N.

¥.

STOCK

TRANSACTIONS
(SHARES):

Other sales

I

Total sales

Oct. u

—

U.

S.

DEPT.

11

1,279,620

1,200,170

22,463,400
23,743,020

1,340,860

1,029,020

20,509,270

27,281,790

11,223,050

21,709,440

28,622,650

OF

products

100.2

100.4

100.3

commodities other

On
On

common

than farm

and

sold

on

delivered




tNumber of orders

foods_.

basis at

centers

where

not

69 128,593

16,159,695

14 ,054,549

227 414,059

291, 454,526

—

183,431,154

"213 ,359,510

91 735,962

91,520,873

92 ,173,373

,186,137

—

199 718,564

950,399

.10,371,517

10 ,299.575

188 ,768,165

81,538,764

110 886,562

structure & equipmerit)

160 272,549

10

IN

TIN

77,626,469
11,811,413
2.00

26,290

27,125

76

415,426

charges

86,446;665
'

4,459,683
2.31

PRIMARY AND SEC¬

THE

MINES

OF

98,468,456

—

TIN—CONSUMPTION OF

(in long

34,025,026

3.18

—_—

fixed

to

165,484,328

63 ,141,619

.

stock

income

167' 420,866

--

4,559,051

.

121

91,910,281

—_

taxes—

preferred stock

ONDARY

$158 285,466
-

—

charges--

appropriations:

Ratio of

74,197,290
199,590,849

——__.y_

income

Dividend

UNITED
Month

STATES

of

August

tons):
31,610

7,165

—

__

end of

32,825

37,295

26.290

31;020

6,535

6,275

26,875

period—

:
,

,

5,685

——-?

scrap

6,580
110

110

—

6,470

6,425

4,530

4.770

1,940

1,655

1,975

$373,122,000

processed
in

5,700

33,455

Receipts

Supply

—

beginning of period

in

Stocks

$33,534,000

$325,513",500

$1,908,500

$1,816,000

$1,681',3

1,461,200

1,504,600

1,356,0

transactions

manufacturing

Primary

—:

—

Secondary

U.

125

6,150

S.

—--—

purchases —!

95.2

95.7

98.8

102.1

101.2

29

92.2

Oct. 29

100.7

100.7

—-—r—

102.0

91.1

4.175

IN DI¬
AND
GUARANTEED SECURITIES
A.—Month of September:

Net

94.7
101.8

——-

,

MARKET TRANSACTIONS

sales

"Oct.

91.6

100.4

100.7

100.7

UNITED

STATES

BUREAU

(000's

figure.

fixed

for

income

Federal

'

16 419,841

income

deductions

Net

Oct. 29

_/■

from

charges.—
Income after fixed charges—

100.8

Oct. 29

foods

,,

♦Revised

deductions

available

Income

OF

,Oct. 29

Meats
All

$125,393,559

307 ,874,367

Total fixed

RECT

LABOR— (.1957-59=100 ):

Processed

$234, 360,242

12,252,070

Commodity Group—
Farm

$33,900,000

73 514,125

,

Miscellaneous

TREASURY

commodities

——

income

Intercompany

IlOct.

PRICES, NEW SERIES

66,110

$35,700,000

CLASS I

income

Consumed

Oct. 11

S.

OF U.

ITEMS

railway operating income—

Total

Total

'

Short sales

All

Net

Stocks at

STOCK

MEMBERS

sales—

*70,680

$35,800,000

Quarter:

BUREAU
,

.

EXCHANGE AND ROUND-LOT

WHOLESALE

2,345,966

1,723,793

1

TOTAL ROUND-LOT STOCK
FOR

1,742,909
19,116

Oct. 11

purchases by dealers—Number of shares

Total round-lot

$45,526,094

-

sales

sales

Other

Round-lot

1,000,188

Oct. 11

!

Short sales

r

$80,856,440

1,881,835
$99,096,142

29,290

1,817,530

Oct. 11

u

shares—Total

$86,189,204

1.456,581

Oct. 11

sales

Round-lot sales by dealers—
Number

1,555,136

.-Oct. 11

sales

other

INCOME

Depreciation (way

..

Oct. 11
Oct. 11

Customers'

'

(Interstate Commerce Commission)—

Second

Net

(customers' purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—customers' total sales
Customers'

-

Other

STOCK

COMMISSION

Dollar value

v

(000's omitted)—1——

August

RYS.

Other

sales

EXCHANGE

of

As

518,638

Oct. 11

Other
Total

$56,970

IN CIRCULATION—TREASURY DEPT.

SELECTED

188,550
-

5,150,665

!

purchases
sales

*$58,930

70,130

Sales

576,543

—Oct. 11

r.

Short

24,280

$58,960

Total

MONEY

337,210

1,431,104

Total round-lot transactions for account of members—
Total

$32,690

*25,210

48,200

289,010

1,198,865

.

205,230

Oct. 11

-

*$33,720

25,230

<

purchases

Short

$33,730

;

:

Nondurables

floor—

i

purchases

$6;301

1,547,920
,

Total

$6,967

(millions,of dollars):

Durables

1,209,950

Oct. 11

£

of August

Inventories—

1,530,570

Oct. 11

sales

$6,804

Month

& SALES-

INVENTORIES

MANUFACTURERS'

Oct. 11

5t>0

1,173

1,276-

MEM¬

OF

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Total purchases
Oct. 11
Short

557

1,177

—

Total

ROUND-LOT

54,500,000

$798,300,000

—

350,817

622,302

Nov.

*17,184.000

7,598,000

$352,300,000

of

Total

97

_

117.8

1

endowments

378,520
98

_

*118.1

PAYMENTS

INSTITUTE

—

Policy dividends

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
19o9

121.4

:

—

benefits

367,134

99

99.49

7,064,000
5.776,000

,

BENEFIT

381,314

99

1

12,840^000

*6,992.000
*5,709,000

manufac¬

:

.

1

250,572

383,964

_

*12.701.000

7,160,000

;

employees in

of

goods

363.5

Oct. 26
_

number

366.9

380,562

—

60,775;453

5,733,000

4.39

Oct. 26

activity
Unfilled orders (tons) at end of period

$1,120,596

61,964,054

average—100)—

Disability payments
Annuity payments
Surrender
values
1

LIFE

,

G7.0G7;099

$1,161,624

C

17,370,000
9,772,000

(1957-59

373.9

373.4

:1

70,287,639

$1,195,035
62,073,665

12,893,000

:

INSURANCE—Month
Death

4.45

401.7

of

"

,

INSURANCE

Matured

4.46

-

goods

POLICYHOLDERS

4.40

4.45

393.5,

'

,

manufacturing

4.26

4.47

16,543,000
8,034,000

DEPT.-

SERIES—Month

'

4.45

7,870,000

72,793,450

31

S

■
:
(production workers)

indexes

4.43

Oct. 26
-

REVISED

Nondurable

4.98

5

4.52

4.47

7,903,000-

19,504,000

of
<_

PAYROLLS—U.

manufacturing

4.31

5

19,300,000
15,757,000

consumers—

—

Durable goods

4.60

—

(tons)—

Percentage

4.52
4.31

...iOct. 26

(tons)

Production

4.53
4.32

5

ultimate

to

turing industries—
All manufacturing

ASSOCIATION:

PAPERBOARD

received

Nov.

AND

LABOR

All

3.69

y4.43

5

I

COMMODITY

NATIONAL
Orders

Nov.

Group

Group

19,343,000
15,758,000

395.2

ultimate customers at Aug.

Estimated

90.34

5

NOV.

on

^

of

Payroll

89.92

89.23

5

Baa

Sept. 28__
Sfipt. 28__

on

Nondurable goods

84.04

'<

7,264,254

INSTITUTE—

sales

"

Durable

87.99

92.20

.

5

:

Public

August

82.52

4.04

7,869,586

—

ELECTRIC

OF

87.45

84.43

5

:

Aaa

Railroad

28

Number

111.625c

5

Average
Aa

Sept.

EMPLOYMENT

90.20

88.40
84.43

4.08

100,767
538.7G9

16,543,000

COMMERCE):

spindle hours (000's omitted) Sept. 28
hours' for spindles
in place

September:-

5

114,253

484,737

-

11.500c

89.03

.

OF

660,594

15,757,000

15,758,000

'r':

117.000c

..

1,171,074
8,712,078

106,460

28

i\~:.
Month of August (000's omitted)Revenue from ultimate customers—Month

88.59

89.23

1,086,606
9,911,933

September

9.500c

122.750c

89.51

667,382

1,023,058
11.792,103

spindle

Kilowatt-hour

12.000c

>

28

(DEPT. OF COMMERCE):

Active

88.40

86.51

of

(DEPT.

Active

124.625c

.

Sept.

9.300c

'

4,173,816

OF

running bales

18,

Spinning spindles active

28.450c

.

*2,730,135

v

30.600c

•11.550c

13.000c

•

11.750c

11.800c

'

51,000

2,802,611

502,429

6.196c

t

3,69i;300

*76,14L

662,637
of

of Sept.

as

$66.33

30.600c

11.800c

month

$23.50

^

-

tons),,

DEPARTMENT

—

Spinning spindles in place

,.

LIFE

Bonds

3,743,200

*4,200,920

73,698
(net

of Sept. 28

as

COTTON SPINNING

MOODY'S BOND YIELD DAILY AVERAGES:
U.

*4,277.061

4,158,115

of month

of ^September
establishments as

GINNING

of Oct.

All

Government

S.

30.600c

1
1
1
1

Zinc

$2,437,900

month

Sept. 28___
.spindles active

Cotton

285

Nov.
Nov.
Nov.
Nov.

$454,300

COMMERCE—RUNNING BALES:

F.DISON

(St. Louis) at
fZinc. (delivered at)

$97,900

4,231,813

r

LINTERS

AND

Linters—Consumed
119

6,247,000

^ov-

*$101,250

September

_.

public storage

2

£ov-

27,050

DEPT.

(net tons)
coke ( net tons)

156,300

$711,700

S.

coke

34,200

}
}
J

1

13,880

*27,940

REPORTED
U.

—

tons)

(net

508,900

Oct. 27
Oct. 27
Oct. 27

.

$56,^70

*14,380

(BUREAU OF MINES)—Month of Sept.:

$929,000

'

i—

omitted)

$682,200

.

Lead

'$58,930

$2,230,600

PUBLICLY

—

CORPORATIONS

$694,200
397,600
296,600
262,400

31
31
31
31

£J0V*

Lead

14,955

$101,240
S.

Beehive

.

"
^
at——

15,893

COM-

August

,

14,470

COMMERCE—Month of

351,000

QUOTATIONS):

J.

M.

&

refinery

of

of dollars):

Production

-

Electrolytic copper—

OF

SERIES- -Month

Oven coke stocks at end

AGE

METAL

15,197

IN THE

—

DEPT.

-

-

U.

(000's

8,689,000

DUN &

INC.

COMPOSITE PRICES:
Finished steel (per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)

IRON

9,875,000

Oct. 31

INDUSTRIAL)

(COMMERCIAL AND

BRAD STREET,

5,402,161

27,820

511,522

406,000

Nov.

kwh.)

(in 000

output

FAILURES

NEW

.DIVIDENDS

INSTITUTE:

ELECTRIC

EDISON

100

=

INVENTORIES

BY

614,632,

508,265

9,550,000

RESERVE
—Oct. 26

DEPARTMENT STORE SALES INDEX—FEDERAL

7,097,916

6,459,994

BRADSTREET,

OF

626,180

9,615,000

Oct.
-Oct.
Oct.
Oct.

8,653,544

$58,960

&

August

Total

54,790,000

518,375

624,581
519,130,

Oct. 26

-

"

7,780,000
5,895,343

Retail

180,830,000

83,134,000

183,465,000

O'26

Municipal

Ago

produced

August—

(Millions

ADVANCE

and

State

Year

38,168,000

52,712,000

35,180,000
173,774,000
52,350,000

r,,co.

Private

of that date:

Month

Manufacturing

COKE

Public

castings

STATES—DUN

MERCE

177,149,000

PLANNING — ENGINEERING
NEWS-RECORD—NEW SERIES (000's omitted):
Total advance planning by ownership
—-Oct. 31
•

either for the

are

are as

Previous

Wholesale

Oict.26

(tons)

for

INCORPORATIONS (NEW)

BUSINESS

COAL OUTPUT

CONSTRUCTION

steel

,.INC.—Month of

•

30,146,000

cars)—Oct. 26

(U. S. BUREAU OF MINES):
coal and lignite (tons)

.

INSTITUTE

8,227,000

31,606,000

ASSOCIATION
Revenue

of

UNITED

30,889,000
3,009,000

STEEL

(net tons)—Month of August—Shipments of steel products (net tons)—

7,33.9,760

2-5
25
25
25

of quotations,

cases

AND

ingots and

61.0

25
25
25
Oct. 25
..—Oct. 25

at

(bbls.)

gasoline

IRON

Month

0.635

-Oct.
Oct.
Oct.
Oct.
Oct.
transit, in pipe lines
Oct.
Oct.
Oct.

in

or,

•

Month

2

(bbls.)

average

output (bbls.)
Kerosene output
(bbls.)
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)
Stocks at refineries, bulk terminals, in
Gasoline

Dates shown in first column

BUSINESS

gallons each)

42

-.V

.

production and other figures for the

cover

Latest

(bbls. of
-Oct. 25

PETROLEUM INSTITUTE:
and condensate output—daily average

AMERICAN
Crude

Nov.

in I960

late

data

•

•

Ago
1,778,000

The American

this

—7

v

...

Year

Ago
1-883,000

102.8

104.4

•

.

that date,

Steel

indicated steel operations (per cent canacUv)
Iron & Steele Institute discontinued issuing

Unofficial

on

weekly production

average

,

month available.

or

Month

Week

1,915,000

1,944,000

2

••

.

month ended

or

Previous

Week

Nov.

..

following statistical tabulations

latest week

Business Activity
<

./

reported since introduction of Monthly Investment Plan,

freight from East St.

Louis exceeds one-half cent

a

pound.

$ Prime Western Zinc

Exports

Imports

—

EXPORTS

OF CENSUS

—

AND IMPORTS
Month of August

omitted):
—

—

r-'—

Volume

Number 6314

198

.

(1827)

Financial Chronicle

The Commercial and

.

.

ADDITIONS

★ INDICATES

istration

Securities Now in

by stockholders on the basis of one new share for
two
like shares held of record Nov. 7.
Rights
NOTE

—

the SEC

icle"

are

of this

/

/

the end
"Securities Now in Registra¬

carried separately at

now

section

parentheses alongside
the company's name, and in the index, re¬
flect the expectations of the underwriter but
^are not, in general, firm offering dates.
Also shown under the capition "Effective
Registrations" are those issues which became

v

"•

shares.

150,000 common, of which 80,000
are
to be offered by company and 70,000 by certain
stockholders. Price—By amendment (max. $25). Busi¬
ness—Manufacture of various types of aerosol products.
Proceeds
For acquisition, equipment, debt repayment
and working capital. Address—Bridgeport, Conn. Underwriter—Laird & Co., Corp., New York.
;
1963

20,

Sept.

filed

-

.

Aerosystems Technology

controls to

the speed of electric powered tools./ Proceeds—
For additional equipment, leased facilities, advertising
and working capital. Address — 1275 Route 23, Wayne,
Nj J. Underwriter—Chase Securities Corp., New York.
govern

Inc.

t

April 1, 1963 filed 200,000 common. Price—$5. Business
—Company owns and operates a chain of motor hotels,

'

apartment buildings and a shopping center. Proceeds—
loan repayment,
expansion and other corporate

For

Buffalo, N. Y.

Office—901 Fuhrmann Blvd.,
Electric

Allen

&

Equipment Co.

(11/18-22)

Price-—By amendment (max.

by a stockholder.

$12). Business—Manufacture of equipment and
tools used in servicing automobiles. Proceeds—For debt

for stock:

sale

repayment. Office—2101 N.

Pitcher St., Kalamazoo, Mich.

Underwriter—Dempsey-Tegeler & Co., Inc., St. Louis.

tion

7

5-year

tal. Office—825 Esperson

Houston/Underwriter—
Nashville,.,
-•
>

Amerel Mining Co. Ltd.
July 31, 1961 filed 400,000 common shares. Price
Business—The company is engaged in exploration,

>

500.
de¬

velopment and mining. Proceeds—For diamond drilling,
construction, exploration and
general corporate ex¬

Office—80 Richmond St., W.,
writer—E. A. Manning, Ltd., Toronto.
penses.

Toronto. Under¬

(12/2) V
29, 1963 filed 132,300 shares of beneficial interest
to be offered for subscription by stockholders on the
basis of one new share for each four held of record Nov.
27, 1963. Price—By amendment (max. $11). Business—
A real' estate investment trust.
Proceeds—For invest¬
ment. Office—608 Thirteenth St., N. W., Washington,^
D. C. Underwriter—Stifel, Nicolaus & Co., Inc., St. Louis.
•

American

Realty

Trust

Oct.

Ampal-American Israel Corp.
Oct.
tures

14, 1963 filed $3,000,000 of 6% sinking fund deben¬
due 1973. Price—At par. Business—Investment in

Ave., New York.

companies participating in the

economic development of

investment. Office—17 E. 71st St.,
York. Underwriter—Israel Securities Corp. (same

Israel. Proceeds—For
New

address).

,

*

-

.

Applied Technology, Inc. (12/2-6)
Oct. 28, 1963 filed 54,200 common. Price—By amendment
(max. $9). Business—Manufacture of various types of
electronic systems for national defense. Proceeds—For
selling stockholders. Office — 930 Industrial Ave., Palo
Alto, Calif. Underwriter—Mitchum, Jones & Templeton,

r/.

vy."-'

Castle

Common

repayment, property improvement, and working
capital. Office—700 Park Ave., Plainfield, N. J. Under¬
writer—S. Schramm & Co., Inc., New York.

debt

Balanced

Income Fund,

Inc.

1963 filed 2,000,000 common. Price — Net asset
value (max. $8.72) plus 8^4%. Business—A new mutual
fund. Proceeds—For investment. Office—120 S. LaSalle
7,

St., Chicago. Underwriter—Supervised
ices, Inc. (same address).
•

Bank

Leumi

Investors Serv¬

le-lsrael B. M.

16, 1963 filed 1,793,750 ordinary shares and 5,147,500 "A" ordinary shares being offered for subscription

Oct.




and

Underwriter

Office—Creede, Colo.

'/*

.

Fund,

Market

Inc.

filed 2,000,000 capital shares. Price—Net
asset value plus 8.5%.
Business—A new mutual fund
specializing in securities of foreign and American com¬
panies operating in the European Common Market.

Office—9465"TWilshire "Blvd.,
Underwriter—Kennedy, Cabot &
address). Offering—Indefinite.

Proceeds—For

investment.

Beverly Hills,

Calif.

Co.

(same

Associations, Inc.
150,000 common, of which 100,000
are to be offered by
company and 50,000 by Harry E.
Wilson, President. Price—$15. Business—Sale of hospital
and surgical insurance contracts. Proceeds—For invest¬
ment, sales promotion, and other corporate purposes.
Office—4000 Aurora Ave., Seattle, Wash. Underwriter—
Community Health

1963 filed

April 12,

None.

;

■

Oct. 22, 1963

'

-

■'..///*.

Mutual Fund, Inc.

Connecticut Western

filed 1,000 common. Price—By

amendment

(max. $1,004).
Business — A new mutual fund which
plans to specialize in insurance securities. Proceeds—For
investment. Office—One Atlantic St., Stamford,. Conn.
Underwriter—Philo Smith & Co., Inc. (same address).
Continental Reserve Corp.
May 13, 1963 filed 45,000 class B common.
Price — $40.
Business —' Company plans to acquire, organize, and
manage

life, accident

-"iL

and health insurance concerns.

Continued on page 32

:

A

be offered for siib-Z
of three new shares

Price^-By amendment (max.

$3.50).

^\V

in

over-the-counter securities

Hospitality Services, Inc.

....

($1,000).

specializing in

derwriter—First Boston Corp., New

Mutual

Telephone Co.,

York.
Inc.

(11/15)-

11, 1963 filed 38,564 common to be offered for sub¬
scription by stockholders on the basis of one new share
for each three held. Rights will expire Nov. 29. Price—
Oct.

Business—Company furnishes telephone service
Prince William, Stafford and Fairfax Counties, Vir¬

$23.50.

- QUOTED
Brokers, Institutions

BOUGHT- SOLD

offered for

of one new
Rights will
expire Nov. J.2. Price—$45. Business—A major chemical
company specializing in production of synthetic struc¬
tural materials. Proceeds—For expansion and other cor¬
porate purposes. Office—522 Fifth Ave., New York. Un¬
Central

a«NEW

of America

Sept. 27, 1963 filed 964,390 common to be
subscription by stockholders on the basis
share for each eight held of record Oct. 25.

in

Busi¬

14, 1962 filed $500,000

Price—At par

•

Price—$1.

Proceeds—For exploration

Manufacture of

Celanese Corp.

April 30, 1963 filed 100,000 common. Price—$4. Business
—A real estate development company.
Proceeds—For

-

of 8% debentures due 1969.
Business—Company plans to
offer management and consultant services to motels and
furnish them with equipment.
Proceeds—For general
corporate purposes. Office—1068 S. Ocean Blvd., Pompano Beach, Fla.
Underwriter—None. ;

Dec.

Alex. Brown & Sons,
v/:,

March 7, 1963

Underwriter—None.

Atlantis International Corp.

Oct.

—

/c

200,000 common.

mining.

operating expenses.
—None.

extruded plastic pipe, and
molded and fabricated plastic pipe fittings. Proceeds—
For debt repayment, working capital, and other corpo¬
rate purposes. Address—P. O. Box 133, Aurora, Ohio.

•

Inc., San Francisco.

'

—
.

•

Colorado Imperial Mining Co.

Offering—Indefinite.

Oct. 9, 1963 filed 304,293 common to
scription by stockholders on,the basis
Business

Underwriter

Baltimore.

(11/20)

V

Business—Writing of

life, accident, health and disability insurance, and an¬
nuities. Proceeds—For expansion. Office—444 Madison

Inc.

Products Corp.

of New York

Price—$26.

will expire Nov. 20.

Business
country
club and golf course, swimming pool and cabana club,
near
Cape Canaveral, Fla., and develop real estate,
erect homes, apartment houses, motels, etc. Proceeds—
For debt repayment and expansion. Office—309 Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &

for each five held.

Insurance Co.

McKinley
Securities

40,000 capital shares being offered
for subscription by stockholders on the basis of two
new shares for each three held of record Oct. 25. Rights

May 10, 1962 filed 100,000 common. Price—$5.
—Company was formed to own and operate a

York.

Life

Citadel

ness—General

1963

Carlon

Proceeds—For debt repayment,

March 26, 1963 filed

15.

Canaveral Hills Enterprises,

'

.

women's, misses' and junior sportswear, co¬

of

Sept. 20, 1962 filed

Fund, Inc.

named Chem-

equipment and workipg capital. Office—2025
St., Hollywood, Fla.
Underwriter—Clayton
Corp., Boston, Mass. Offering—Indefinite.

repayment,

Co., Inc., New

Industries, Inc.

ordinates, and dresses.

filed 200,000 capital shares. Price—Net
asset value (max. $10). Business—A new mutual fund.
Proceeds—For investment. Office—8401 W. Dodge Rd.,
Omaha. Underwriter—None.
7
25,

was

29,

facture

Speed Packaging &

Bridges Investment
.July

formerly

1961 filed 300,000 class A common, of which
225,000 are to be offered by the company and 75,000 by
stockholders.
Price—$5.
Business—Design and manu¬

product development, working
capital and other corporate purposes. Office—1129 Club
House Road, Gladwyne, Pa. Underwriter—None.
Brewer
(C.) & Co., Ltd.

Bldg.,

Equitable Securities Corp.,

vaporizing unit for dis¬

electronic

an

Chestnut Hill

Nov,

New York.

expire Nov.

of

named. Note—This company

Price—$60. Business — Growing and
processing of sugar in Hawaii and Puerto Rico/market¬
ing of black strap molssses and other activities. Proceeds
—For debt repayment. Office — 827 Fort St. Honolulu.
Underwriters—Blyth & Co., Inc., New York, and Butcher
& Sherrerd, Philadelphia.

and

development, produc¬

pollutants; and

air

sale

„air Electronics Corp./ Offering—Indefinite.

New York.

warrants to purchase an additional 80,000
common, to be offered in units consisting of one $100
debenture, 12 shares and warrants to purchase an addi¬
tional 4 shares. Price—By amendment (max. $230 per
unit). Business —- Operation of 558 parking lots in 40
cities. Proceeds—For debt repayment and working capi¬

ordinated

,

and

and

pensing such chemicals. Proceeds—For debt repayment,
equipment, sales promotion and working capital. Office
N. La Salle Street, Chicago. Underwriter—To be

Sept. 30, 1963 filed 146,735 common being offered for
subscription by stockholders on the basis of one share
for each five shares held of record Oct. 28. Rights will

(11/25-29)

$10 debenture and two

one

—221

Inc.

1963 filed $2,000,000 of 6% sinking fund sub¬
debentures due 1978, 240,000 common shares

Ailright Auto Parks, Inc.
Sept. 24,

of

growth

July 23, 1963 filed 588,780 common to be offered for
subscription by stockholders on the basis of three new
shares for each share held. Price—50 cents. BusinessProduction of a light two-place helicopter. Proceeds—
debt

consisting of

Price^$12 per unit. Business—Production and
chemicals designed to control odors, bacterial

common.

Development Corp.
July 22, 1963 filed 699,380 common being offered to
7
stockholders of Atlas General Industries, Inc., parent,
on the basis of one Bradford share for each two Atlas
shares held of record Oct. 14. Rights will expire Nov.
13. Price—$11.05. Business—Company holds a 40% stock
interest in Maryland Logging Corp., which conducts log¬
ging operations in Liberia and will acquire from Atlas,
Kliklok Automated Packaging Division, engaged in the
manufacture and leasing of packaging machinery. Brad¬
ford also owns 69,509 shares (9.59%) of Foster Wheeler
Corp. Proceeds—For selling stockholders, Atlas General.^
Office—62 William St.,'New York. Underwriter—Burn-

For

Corp.

offered in units

25,

ham & Co.,

Chemair

Offering-

28, 1962 filed $150,000 of 6% subordinated income
debentures due 1973 and 30,000 common shares to be

Brantly Helicopter Corp.

Sept. 27, 1963 filed $1,200,000 of 6% convertible subordi¬
nated debentures due 1976; /also 100,000 common to be
offered

;

York.

Dec.

(12/2-6)
5V2% convertible sub¬
31, 1978; also 125,000
outstanding class A shares to be sold by certain stock¬
holders. Price—By amendment.
Business — Wholesale
distribution of ethical drugs, chemicals, cosmetics, etc.
Proceeds
For debt repayment and working capital.
Office—138-160 Johnson Ave., Hackensack, N.; J. Under¬

Underwriter—None.

Ave., Clifton, N. J. Underwriter

Wilkens & Co., Inc., New
Expected in mid-January.

Offering—Indefinite.

Bradford

Business—

1963 filed 165,000 common. Price—$3.
Manufacture of a. new line of motor speed

purposes.

ment. Office—50 Colfax

—Arnold,

Federal income tax purposes.

writer—F. Eberstadt & Co.,

Corp.

Oct. 4,

Airway Hotels,

Fund, Inc.

—

—

Charvos-Carsen Corp.

29, 1963 filed 100,000 common. Price—$5.50. Business—Distribution of engineering, surveying and draft¬
ing instruments and supplies. Proceeds—For debt repay¬

,

1963 filed $1,250,000 of
ordinated debentures due Oct.

(11/12)

Inc.

's

1963 filed

Bergen Drug Co.,

Oct.

Aerosol Techniques,

•

Business—
A
closed-end investment company seeking long-term
growth of capital and income. Proceeds — For invest¬
ment. Office—35 Congress St., Boston. Underwriter—
Kidder, Peabody & Co., New York. Note—The exchange
will not be consummated unless $25,000,000 of securi¬
ties are deposited and accepted. This means that the
Fund expects to issue a minimum of 1,000,000 capital

,

ISSUE

REVISED

Oct.

10,000 $1 par capital shares to be
certain acceptable securities on
the basis of one share for each $25 of deposited securi¬
ties. Exchange is believed by counsel for the Fund to
29,

be tax-free for

7

licly.

,

ITEMS

Fleming & Co., Inc., Washington, D. C.

offered in exchange for

offered pub¬

effective this week and were

,

Bay State Exchange

May

tion." Dates shown in

,

will

general com¬
capital funds.
Address—Tel-Aviv, Israel. Underwriter—Kuhn, Loeb &
Co., Inc., New York.

•

PREVIOUS

ginia. Proceeds—For construction and loan repayment.
Address—Manassas, Va. Underwriter — Folger, Nolan,

each

expire Nov. 25. Price—$1.22. Business—A
mercial bank.
Proceeds — To increase

Registration statements filed with
since the last issue of the "Chron¬

SINCE

31

for Banks,

.

Jno.

%Uwu,s$. SilEGEE ¥
ESTABLISHED 1942
<7

Members of New

York Security Dealers Association

39 Broadway,

New York 6, N. Y.

TWX: 212-571-0320

Dlgby 4-2370

Direct JPires to
R. J. HENDERSON

& CO., INC., Los

WOODCOCK. MOYER, FRICKE

Angeles

& FRENCH. INC..

Philadelphia

32

The Commercial and Financial Chronicle

(1828)

Continued from page

St., New York.

East 40th

June

Office

subsidiaries.

investment in

Proceeds—For

Inc. (11/25-29)
1962 filed 300,000 common. Price—$5. Busi¬
ness
Operation of Jai Alai games and pari-mutuel
betting. Proceeds—For rent, purchase of leased quarters,
building improvements, working capital. Office — Fern
Park, Fla. Underwriter—Consolidated Securities Corp.,
Pompano Beach, Fla.
Florida Jai Alai,

31

114

—

Underwriter—None.

(11/11-15)
•
Sept. 30, 1963 filed $1,000,000 of 6% convertible sub¬
ordinated debentures due 1973; also 125,000 common to
be offered by stockholders. Price—By amendment (max.
Craft Master Corp.

.

William T. Robbins & Co.,

*

Jan. 30,

■

.

Second

with attached war¬
be of¬
deben¬
tures in units (of one share and one warrant) on the
basis of 3 units for each 5% prior preferred share held,
one
unit for each 5% preferred A stock held and 40
units for each $1,200 face amount of non-.intqrest bear¬
ing subordinated debentures held. At the same time, the
company will offer the securities to the public. Price
To subscribers, $20; to public, $22.25.
Business -Com¬
pany plans to erect a small size production and experi¬
mental plant for the limited manufacture of deuteiium
Proceeds—For working capital,

Inc.

April 19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held. Price—By amendment (max.

Business—Research, development and construc¬
experimental helicopters. Proceeds—To obtain
of models, train service personnel, repay
debt, etc. Address—Municipal Airport, Danbury, Conn.
Underwriter—None.
Note—The SEC has issued a stop
order suspending this registration statement.
$1.25).

of

certification

(11/7).

Donaldson Co., Inc.

filed 145,000 common. Price—By amendment

gines, and special seals, filters, bellows and pumps for
in aircraft and missiles. Proceeds—For selling stock¬
holders. Office—1400 West 94th St., Minneapolis. Under¬

Grand

payment.

and

medical

marine

7, 1963
shares

share.

purposes.

("Reg. A")
and

Office—2222 S'. Centinela Ave., Los Angeles.

1963

•

16,600 units, each consisting of
to purchase one additional

per

Great Lakes Homes,

Sept. 27,

filed

—

1963 filed

Inc.

160,000

common,

for each 4V2 shares held.

Proceeds—For investment. Of¬
York. Distributor—F. Eberstadt
Co., Managers & Distributors, Inc., New York.
'

fice—65 Broadway, New

Electronic

Greater

Nebraska Corp.
1963, filed 3,000,000 common. Price—$2. Busi¬
ness—Company plans to operate subsidiaries in the fields
of banking, insurance, finance, etc. Proceeds—For gen¬
eral corporate purposes. Office—1107 Federal Securities

Dispenser Corp.

Business
machine,

Building, Lincoln, Neb.

and processing of tray-forming and chip-covering mate¬
Proceeds—For operating expenses, equipment, in¬

•

Office—118 E. 28th St., New
Underwriter—L. D. Brown & Co., New York. Of¬

fering—Postponed.

for

Productions Ltd.

Holiday Mobile Home Resorts, Inc.
March 27, 1963 filed $1,250,000 of 6V2% conv. subord. de¬
bentures due 1978, and 75,000 common to be offered in
units consisting of $50 of debentures and 3 shares. Price
—$68 per unit. Business—Development and operation of
mobile home resorts throughout U. S.
Proceeds—For

debt repayment,

pur¬

O f f i c e—4344 East Indian School Rd., Phoenix.
Underwriters—Boettcher & Co., Denver, and J. R. Williston & Beane, New York. Note—This statement will
not

be

withdrawn

amended..

V

as

previously reported/but will be
V;
V:
.;:VJ: -

Horace Mann Life Insurance Co.

1, 1963 filed 200,000 common, of which 80,000 are
and 120,000 by stockholders.
Price—$12.50. Business—Writing of life, accident and

Fedco Corp.

(max.

$15).

Business—Design

era-and reduction of accounts payable.

to

Pratt Ave., Chicago.

Underwriter—None.

be offered by company

health insurance.

Proceeds—For general corporate pur¬
Office—216 E. Monroe St., Springfield, 111. Under¬
writer—Horace Mann Investors Inc., (same address).

and

Office—3600 W.

Office

—

919 N.

Insurance

Securities, Inc.
24, 1963 filed 1,000,000 class A common. Price—$5.
Business
Company plans to acquire or organize life,
accident

and

health insurance subsidiaries. Proceeds—
debt repayment, advances to a
subsidiary and in¬
vestment. Office—19 Molton St.,
Montgomery, Ala. Un¬
For

which

poses.

*

•

Imperial '400'

Oct.

will

the

Free

to business of Investors Gr&up
Ltd., and invest in securities throughout

succeed

Canadian Fund

Proceeds—For

World.

Address—

investment.

Bldg., Minneapolis. Distributor—Investors
Diversified Services, Inc. (same address).
Investors Realty Trust
May 31, 1962 filed 200,000 shares. Price
—A

National

Inc.

and

convertible

sub¬

ordinated debentures due 1978 and 69,000 common to be

—

$10. Business

Proceeds

Office

investment,

Ave., N. W., Washington, D. C.

3315

—

—

For con¬

Connecticut

Underwriter—None.

Fund, Inc.

July 29, 1963 filed 300,000 common.
—Fund

in

vest

plans to

own

securities

investment.

of

Price—$10. Business
stock of companies which will in¬

Israeli

enterprises.

Office—17 East 71st

writer—Israel Securities Corp.,

Proceeds—For

S't., New York. Under¬
(same address).
_

Israel American Diversified

Fund, Inc.

April 22, 1963 filed 550,000 common. Price—Net asset
Business—A new mutual fund special¬
izing in Israeli and American securities. Proceeds—For

value plus 8V2%.
investment.

Office—54 Wall St., New York.

—Israel Fund Distributors, Inc.

Distributor

(same address). Offering

—Expected in late November.
• Israel
Baby Food Co. Ltd. (11/18-22)
Sept. 12, 1963 filed $190,000 of 8% subordinated deben¬
tures due 1975 and 14,000 8% preferred ordinary shares.
Price—For debentures, $100; for stock $10. Business—
Company plans to prepare and market baby food in
Israel and abroad. Proceeds—For loan repayment, con¬
struction, equipment, and other corporate purposes. Ad¬
dress—Givat
Brenner, Israel. Underwriter—Brager &
Co., New York.

Israel Fund, Inc.
July 18, 1963 filed 500,000 common.

Price—$12.50.

Busi¬

ness—A closed-end investment company which plans to
invest in Israeli firms. Proceeds—For investment. Office

—4200

Hayward Ave,,/Baltimore. Underwriter—Inves¬
Planning Corp. of America, New York.

tors

ness—A

Price—$104. Busi¬

common.

closed-end investment company engaged in in¬

vesting in private industries located in Israel. Proceeds
—For investment.

Office

—

850 Third

Ave., New York.

Underwriter—None.
"Isras"

Israel-Raasco Investment Co., Ltd.
28, 1963 filed 60,000 ordinary shares. Price—$55.
Business—A real estate development
company which
June

also

owns

porate

citrus plantations.

purposes.

writer—Rassco of
•

Proceeds—For general

Address—TeDAviv,

Israel.
Delaware Inc., New York.

Jaap Penraat Associates,
30, 1962 filed 100,000

cor¬

Under¬

Inc.

Price—$3. Business
designing, the design- of teaching machines
production of teaching programs. Proceeds—
For expansion, new facilities and
working capital. Office
—315 Central Park W., N. Y. Underwriter—To be
named.
Offering—Indefinitely postponed.
common.

—Industrial
and

the

• Jade

Oct.

(11/25-29)

29, 1963 filed $1,150,000 of 6%%

estate investment trust.

real

struction

Jan.

Feb.

Oct. 29, 1962 filed 20,000 common, of which 17,500 are to
be offered by company and 2,500 by a shareholder. Price




construction, and other corporate

poses.

tion will be withdrawn and then refiled.

manufacture of tools, dies, molds, beryllium castings and
the distribution of plastic, metal and glass products for
home use. Proceeds—For a recession offer to stockhold-

For expansion.

Israel Investors Corp.
Sept. 26, 1963 filed 100,000

New York.

Equity Funding Corp. of America
Marchu29, 1962 filed 240,000 common. Price—By amend-,
ment (Max. $6.50).
Business—A holding company for
firms selling life insurance and mutual funds. Proceeds
—For new sales offices, advances to subsidiaries and
working capital. Office—5150 Wilshire Blvd., Los An¬
geles. Underwriter—To be named. Note—This registra¬

amendment

working capital. Office—6400 MacCorkle Ave., S. W.,
Albans, W. Va. Underwriter—Charles Plohri & Co.,

St.

Sept. 26, 1963 filed 400,000 class A common. Price — $5.
Business—Company plans to operate, produce and fi¬
nance
various types of. ventures in the theatrical and
entertainment fields. Proceeds—For working capital, and
other corporate purposes. Office — 50 Broadway, New
York. Underwriter—Linder, Bilotti & Co., Inc., (same
address).
'

—By

Underwriter—None.

Heck's Inc.

(11/11-15)
June 12, 1963 refiled 180,000 class A common. Price—
$2.50. Business—Operation of discfount stores. Proceeds
—To provide fixtures and inventory for a new store, and

ventory and advertising.

Elite Theatrical

development

Feb. 20,

rials.

York.

of

and

real estate. Proceeds—^-For
general corporate purposes. Office—811 du Pont Plaza
Center, Miami, Fla. Underwriter—None.

seeking current income.

Jan. 29, 1963, filed 50,000 common. Price—$2.
—Manufacture of the SAFER Butter Chipping

Price—$5.50. Business—Acqui¬

sition

Fund, Inc.

31, 1963 filed 2,000,000 capital shares. Price—Net
asset value plus 8V2%.
Business—A new mutual fund

May

&

—

Oct.

Israfund-lsrael

(11/18-22).
of which 100,000
will be sold for the company, and 60,000 for stockhold¬
ers. Price-r-By amendment
(max. $10). Business—Manu¬
facture of custom-designed, factory built homes. Pro¬
ceeds—For debt repayment and working capital. Address
—Sheboygan Falls, Wis. Underwriter—The Milwaukee
Co., Milwaukee, Wis.

'

Eberstadt Income

Proceeds

warrant

a

Price—$15

360,000 common, of which 300,000
are to be offered by company and 60,000 by stockhold¬
ers.
Price
$4. Business—Company plans to develop
land for a year-round amusement resort. Proceeds—For
construction, debt repayment, working capital and other
Greater Miami Industrial Park, Inc.
corporate purposes. Office—2042 S. Atlantic Ave., Daytona' Beach, Fla. Underwriter—Alpha Investment Secu- < Feb. 25, 1963, filed 136,094 common to be offered for
rities, Inc., Atlanta.
subscription by stockholders on the basis of one share
26,

insurance.

derwriter—Nemrava & Co., Denver.

Eagle's Nest Mountain Estates, Inc.
Sept.

9

New York.

1000 Roanoke

unit. Business—Manufacture, de¬
velopment and sale of an installation" tool, a repeater
balling gun, and microprojector motivation kits.
Pro¬
ceeds—For debt repayment, inventories, advertising, and
working capital. Office—5532 Harlan Arvada, Colo. Un¬

working capital, equipment and debt re¬

Underwriter—None.

working capital.
Office—460 Sylvan Ave., EngleCliffs, N. J. Underwriter—P. W. Brooks & Co. Inc.,

wood

derwriter—Investor Services, Inc. (same address).
International Data Systems. Inc.

(11/7)

Corp.

five

Dynapower Systems Corp.
Sept. 28, 1962 filed 750,000 common. Price—$1. Busi¬
ness—Manufacture of electro-mechanical vehicles and
for

Power Co.

Oct.

writer—Paine, Webber, Jackson & Curtis, New York.

devices

the

Business—Devel¬

chain of motels. Proceeds—■

—

2,574,772 common. Price—At-the-marCompany plans to mine for uranium.
selling stockholders. Office—202-^ So.

ment, and other corporate purposes. Office—112 Powers
Bldg., Rochester, N. Y. Underwriter—None.

use

electronic

'

Business—General real estate. Proceeds—For debt repay¬

(max. $19). Business—Company manufactures air clean¬
ers and mufflers for heavy duty internal combustion en¬

Proceeds—For

For

a

4, 1963 filed $30,000,000 of first mortgage bonds due .'.Aug. 2, 1963 ("Reg. A") 11,000 common to be offered
Proceeds—For construction, and loan repayment.
for subscription by stockholders on a pro-rata basis.
Office—270 Peachtree St., Atlanta. Underwriters—(Com¬
Price—At-the-market.
Business—Development, design
and manufacture of electronic devices. Proceeds—For a
petitive). Probable bidders: Equitable Securities Corp.Eastman Dillon, Union Securities & Co. (jointly); Blyth
selling stockholder.
Office—2925 Merrell Rd., Dallas.
& Co.-Kidder, Peabody & Co.-Shields & Co. (jointly);
Underwriter—A. G. Edwards &
Sons, St. Louis. Offering
Halsey, Stuart & Co. Inc.; First Boston Corp.; Harriman
—Indefinitely postponed.
Ripley & Co.; Morgan Stanley & Co.; Lehman Brothers.
International Life Insurance Co. of Buffalo
Bids—Nov. 7 (11:45 a.m. EST) at Southern Services, Inc.,
Sept. 26, 1963 filed 125,900 capital shares to be offered
115 Broadway
(Room 1510), New York.
Information
for subscription by stockholders on the basis of one new
Meeting—Oct. 31 (2:30 p.m. EST) at Chemical Bank New
share for each four held. Price—By amendment (max.
York Trust Co., 20 Pine St. (4th floor), New York.
$32). Business—Sale of various forms of life insurance
and annuities. Proceeds—For investment and expansion
Georgia Power Co. (11/7)
Oct. 4, 1963 filed 70,000 preferred (no par). Proceeds—
of operations. Office—120 Delaware Ave.,
Buffalo, N. Y.
For construction and loan repayment. Office—270 PeachUnderwriter—None.
tree St., Atlanta. Underwriters—(Competitive). Probable
• Intra State
Telephone Co.
bidders: First Boston Corp.; Lehman Brothers; Blyth &
Sept. 5, 1963 filed 8,983 common being offered for sub¬
Co.; Eastman Dillon, Union Securities & Co.-Equitable
scription by stockholders on the basi? of two new shares
Securities Corp. (jointly); Morgan Stanley & Co. Bids—
for. each five held of record Oct. 21. Rights will expire
Nov. 7 (11 a.nn EST) at Southern Services, Inc., 115
Nov. 16. Price—$100. Business—Company, 36.8% owned
Broadway (Room 1510), New York. Information Meeting"
by Illinois Bell Telephone, furnishes telephone service
—Oct. 31 (2:30 p.m. EST) at Chemical Bank New York
in Illinois. Proceeds—For loan repayment, and other cor¬
Trust Co., 20 Pine St., (4th floor), New York.
porate purposes. Office—100 North Cherry St., GalesGordon (I.) Realty Corp.
burg, 111. Underwriter—None. Note—This statement has
become effective.
Sept. 27, 1963 filed $2,113,748 of 7% subordinated con¬
vertible debentures due 1974 to be offered for subscrip¬
Investors Inter-Continental Fund, Inc.
tion by stockholders on the basis of $700 face amount
July 3, 1963 filed 3,000,000 capital shares. Price—Net
for each 100 common shares held. Price:—By amendment.
asset value plus 7V2%.
Business—A new mutual fnftd

equipment and other corporate purposes.
Office—360 Lexington Ave., N. Y. Underwriter—None.

Oct. 4, 1963

amendment.

1993.

construction

tion

Price—By

opment and operation of

Oct.

oxide, and to establish and equip a gen¬

Helicopters,

;

St., Laramie, Wyo. Underwriter—None.

Georgia

xx

purchase an additional 120,000 shares to
fered for subscription by holders of its stock and

Doman

'

Hills Uranium Co.

Proceeds—For

rants to

and deuterium

Underwriter—Prudential Invest¬
„

Oct. 28, 1963 filed
keL
Business —

Sept. 28, 1962 filed 120,000 common

eral research laboratory.

by

stockholders.

Michigan Ave., Chicago. Underwriter—None.

Gas

Price—$12.50. Busi¬

plans to write automobile insurance.
Proceeds—For general corporate purposes. Office—146
Old County Rd., Mineola, N. Y. Underwriter—None.
y

Deuterium Corp.

offered in units, each consisting of $100 of debentures to
be offered by the
company and six common

ing capital and debt repayment. Address—West Highway

.

1963 filed 100,000 common.

ness— C o m p a n

Thursday, November 7, 1963

.

Insurance City Life Co.
Oct. 29, 1963 filed 494,100 capital shares to be offered
for
subscription by stockholders of record Feb. 26, 1963 on
a share-for-share
basis. Price—$3.25. Business—General

50-Winter Garden, Fla.
ment Corp., Miami.

Inc., Cleveland.
Defenders Insurance Co.

.

Frazure, Hull, Inc.
Aug. 21, 1963 ("Reg. A") 133,333 common. Price—$2.25.
Business—Fruit growing, publishing of a farm news¬
paper, citrus fruit brokerage and operation of a retail
store. Proceeds—For expansion of the newspaper, work¬

$11 for common). Business—Manufacture of paint-bynumber sets, crushed marble mosaic kits, hobby kits and
wooden picture frames. Proceeds—For debt repayment.
Office—328 N. Westwood Ave., Toledo. Underwriters-

Fulton, Reid & Co., Inc., and

28,

.

Oil & Gas Co.

28, 1963 filed $2,500,000 of 6%%

ordinated

debentures

Business—Production

convertible sub¬
Price—At par.

(with warrants).
of

oil and

gas

primarily in Cali-

Volume

Number 6314

198

fofuiaj "Texas andj Louisiana. Proceeds^For debt' repay-"
ment, exploration and development, working capital and I
other

corporate

Office—9107r Wilshire Blvd.,

purposes.

Beverly Hills, Calif. Underwriter—Hannaford & Talbot,
San Francisco. Offering—Expected in mid-December.

Fund,

Janus

Spur Ranch,

1963

Co.

Jurgensen's

30, 1963 ("Reg. A") 12,000 6% convertible pre¬
ferred (par $25). Price—At par. Business—Operation of

Sept.

service

retail food stores in Southern
California. Proceeds—For debt repayment, and working
capital. Office—601 S. Lake Ave., Pasadena, Calif. Un¬
derwriter—Evans, MacCormack & Co., Inc., Los Angeles.
credit

and

ment, sales promotion, and working, capital; "Office — 2
Engineers Lane, Farmingdale,' N.' Y j Underwriter—Andresen & Co.,- New York. %V.vT;/-VV"*"
.
Krasnow

Industries, Inc.

1963 filed 125,000 common. Price—By amend-'
(max. $5). Business—Volume manufacture of in¬

type

Kentucky Fried Chicken, Inc.

ment

C expensively priced men's and children's belts. Proceeds

.

27, 1963 filed 25,000 class A Noting, and 25,000
class B non-voting common. Price—$10. Business—Com¬
Sept.

N.

Oct.

porate

purposes.

Life Affiliates

>

(11/18-22)

Corp.

change Place, N. Y. Underwriter
Corp., New York.

First Philadelphia

—

(11/18-22)

Life Insurance Co. of Florida

Aug. 16, 1963 filed 400,000 common. Price—By amend¬
ment (max. $6). Business — Writing of industrial life,
accident and health insurance as well as ordinary life
insurance. Proceeds—For investment and eventual ex¬

pansion. Office—2960 Coral Way, Miami. Underwriter—
Pierce, Wulburn, Murphey, Inc., Jacksonville.
/

pany

Logos Options, Ltd.
April 11, 1962 filed 250,000 capital shares. Price

pare

amendment (max.

franchises certain restaurants in the U. S. to pre¬
and sell Kentucky Fried Chicken. It also sells or
leases equipment used in preparation of this item. Pro¬
ceeds — For the selling stockholder, Harland Sanders,
Chairman. Address—Box 67, Shelbyville, Shelby County,
Ky. Underwriter—None.
Key Finance Corp.

7, 1963 filed 80,000 common. Price—By amend¬
ment
(max. $5). Business—Operation of a small loan
business in Puerto Rico. Proceeds—For loan repayment,
June

expansion and other corporate purposes. Address—Rio
Piedras, Puerto Rico. Underwriter—Myron A. Lomasney
& Co., New York. Offering—Imminent.
Kinemotive

Corp.

Oct. 29,

1963 filed 50,000 common. Price—$6.50. Business
—Design, manufacture and sale of deposited metal bel¬

&

Commercial
(Francis

Donaldson

Co.,

Georgia

North
C.

A.

America

Allyn,

-Cap.

45,617

(Brager

145,000

Curtis)

&

shares

Bonds

11:45

Georgia Power Co
(Bids

EST)

a.m.

$30,000,000

>

11

EST)

I,.

:

Feb.

ance

(Stifel,

Mohawk

Nicolaus

Insurance
&

Co.,

Inc.)

Medical Industries Fund, Inc.
Oct. 23,
—A

- end.
Proceeds — For investment in the
industry and capital growth situations. Office
—677 Lafayette St., Denver. Underwriter — Medical As¬

become

open

medical

sociates, Inc. Denver.
•

Safe

Barney

&

Co.,

to

Inc.)

150,000 common. Price—By amend¬
subsidiaries, the company pro¬
vides telephone service to 104 communities in Ohio. Pro¬
ceeds—For loan repayment. Office—363 Third St., Elyria,
O. Underwriter—The Ohio Co., Columbus.
17,

1963 filed

ment. Business—Through

Contnued

Common

Nat'l

Bank

(Memphis)__Cap.

stockholders—underwritten
&

Co.,

11

November

Inc.)

by

M.

(Offering

(Fulton, Reid &

Technology,

Applied

(Mitchum,

■

Co., Inc.)

(

$1,000,000

.

Heck's, Inc.

Common
Plohn

&

Co.)

$450,000

Debentures

(First

Nebraska

November

Aerosol

Securiies

Corp.)

$2,000,000

(Laird

&

Ralston

Inc

Common

Corp.)

Co.,

150,000

Russ

12

CST)

noon

Loeb

&

(Bids

(Wednesday)

Norfolk & Western Ry
(Bids

12

,

Equip. Trust Ctfs.
EST)

noon

Co.,

11

(Offering

(Bids

(Offering

to stockholders—Bids

Seaboard

Air

Line

(Bids

Trans

World

(Merrill

—Common
11

a.m.

EST)

717,408

RR.

12

Pierce,

shares

November

Debentures

Inc.,
and
$35;000,000

(Paul)

Northern

Fenner

Units
Smith

&

Inc.)

80,962

units

(Bids

Weyerhaeuser Co
(Morgan

&

Co.)

400,000

Stock
Masco

shares

W.

Corp)

Securities.

Brooks

&

Co.,

Central

15

(Friday)

Mutual Telephone

(Offering

Co., Inc

Common

-

Nolan,

Fleming

& Co.,

by Folger,
$906,254 /

Inc.)

Okliana Corp.

November

Electric

Underwriters,

18
&

(Dempsey-Tegeler

Great

Lakes

&

Co.,

Inc.)

&

Co.,

Inc.)

$1,200,000

100,000

shares

Homes, Inc._

(The

Milwaukee Co.)




'

-Common
160,000

shares

11,500

Inc.)

Inc.)

Downs,

(Suplee,

'

11

Grace

&

Co.)

&

103,500

Co.)

San

units

Jones &

EST)

12

Bonds

$75,000,000

Equip. Trust Ctfs.

-

CST)

noon

$2,700,000

(Monday)

23

Morcol Pipeline, Inc.(Milburn, Cochran & Co., Inc., and Midland
'

Co., Inc.)

Units
Securities

$300,000

(Tuesday)

January 7, 1964

—Equip. Trust Ctfs.

Missouri Pacific RR

shares

(Bids

New

York

12

noon

CST)

$6,600,000

/—.Bonds

Telephone Co
(Bids

.Common

be

to

received)

$130,000,000

$900,000

Common
$32,363,750

Mosley Co., Inc.) $4,375,000

Common
New

York',

(Tuesday)

January 14, 1964

Na'rragansett

Electric Co.„

(Bids

Units

Inc

Yeatman,

a.m.

(Thursday)

12

(Bids

Capital Shares

stockholders—underwritten by
Hanseatic Corp.) 125,000 shares

to

Bonds

$30,000,000

r

Debentures

Security Title & Guaranty Co.—
(Offering

EST)

200,000 shares

Pacific Northwest Bell Telephone Co
(Offering to stockholders—no underwriting)
Pocono

a.m.

Texas & Pacific Ry—

-Units

Peabody & Co., Inc., and Mitchum,
Templeton Inc.) $4,000,000

(Sterling,

Common

,__

$1,500,000

Co.—_

(Peter Morgan

-Debentures

Equipment Co

Corp.)

Natural Gas & Oil Producing Co

(Monday)
Equipment Co

(Dempsey-Tegeler

Allen Electric &

$3,500,000

Inc.)

units

-Common

Missouri National Life Insur. Co

Units

(Equity

Allen

(Kidder,

$4,800,000

Edison Co. of New York

Consolidated

Common

Macco Realty

stockholders—underwritten

to

20,000

Corp.
(Smith, Barney & Co.,

November

EST)

(Wednesday)

December 11
'

Units

Inc

Securities

Florida Jai Alai, Inc.—..,———

(P.

Equip. Trust Ctfs.
noon

11

(Bids

Imperial '400' National Inc.

.

_______Capital

Stanley

Blyth

$5,500,000

December

v

(Thursday)

12

Virginia Electric & Power Co

EST)' $30,000,000

: -

(Tuesday)

(Monday)

(Consolidated

November 14

$7,000,000

Co.)

Pacific Ry

___Bonds

Debentures

—

&

Noyes

December 10

Preferred

Inc.)

Parks,

(Equitable

Inc

(Hemphill,

Sachs

Goldman,

Debentures

Co.,

25

Auto

Equip. Trust Ctfs.
$3,600,000

EST)

noon

(Monday)

December 9
Hardeman

December

Allright

$22,000,000

12

(Friday)

Bonds
EST)

noon

Airlines, Inc,__

Lynch,

&

$10,000,000

Bonds
and

Inc.,

stockholders—underwritten by

to

Bends

Co..

received)

to be

New York Central RR

shares

Inc

System,

Ryder

Debentures

(Wednesday)

Electric

(Bids

EST) 200,000 shares

a.m.

Co., Inc.)

shares

(Tuesday)

December 4
Massachusetts

Inc.;

„

November 22

$7,000,000

Pacific Power & Light Co.

Common
and J. C. Bradford &

Inc.,

Co.,

(Bids

November 13

100,000 shares

Co.)

&

Pacific Northwest Bell Tel. Co.—:.
v
•, (Bids
11 a.m. EST) $50,000,000

;

_

noon

Union Electric Co

141,035 shares

Co.)

Co.)

/

.

Common

—

Co.,

&

(Bids 12

-Class A
&

shares

Fenner & Smith
Inc.) $40,000,000

Co

Peabody

Union Electric Co

$5,100,000

shares

—Common

1,750,000

Capital Shares

!
&

Lynch, Pierce,
Blyth & Co.,

&

Togs, Inc
(Shearson, Hammill

Blyth

Corp.;

Purina

(Kidder,

Class A
125,000

Co.)

&

Corp.

December 3

200,000

-

shares

Chicago, Burlington & Quincy RR-Equip. Tr. Ctfs.
(Bids

(Kuhn,

$3,390,000

Puget Sound Power & Light Co
(Merrill

12. (Tuesday)

Techniques,

Co.

Boston

Debentures

:

.

Equip. Trust Ctfs.
EST)

noon

4,000,000

Inc.

:
(Bache

(Wednesday)
12

shares

$1,250,060

Eberstadt & Co.)

Eberstadt

Inc.

Nationwide

Preferred

$10,000,000-

EST)

a.m.

Garan,

Goldman, Sachs
&
Co.;
Kuhn, Loeb &
Co., Inc.;
Lazard Freres & Co.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Smith
Inc.; White, Weld & Co.„ Inc., and Dean Witter & Co.)
(First.

54,200

Bergen Drug Co., Inc

;

underwriting)

(No

Motor

Ford

Inc.)

$10,000,000

Bridges Investment Fund, Inc.—

' / ;

•

.Debentures

____

(Charles

shares

Bonds
EST)

noon

11

(Bids

(Fulton, Reid & Co., Inc., and William T. Robbins & Co., Inc.)

Ramo,

12

November 20

shares

125.000

Corp

150,000

England Power Co.

Common

Common

Inc
Templeton,

&

Jones

Stifel,

by

132,300 shares

Bergen Drug Co., Inc

shares

Atlantic Coast Line RR

Robbins

Ben. Int.

—

Inc.)

Co.,

(Tuesday)

(Bids

$6,000,000

(Monday)

Co., Inc., and William T.

Master

Craft

Stk.

&

Common

Power Co.

(Bids

New

Trust

stockholders—underwritten

to

Saunders

A.

Master Corp.-

Craft

New England

150,000 shares

(Monday)

December 2
American Realty

(F.

350,000 shares

page

Common
Allyn, Inc.)

A. C.

duPont,

(Francis I.

on

(Wednesday)

November 27

Common

Co.)

&

19

$6,000,000

Co.—_:

Planters

(Offering

(Bache

November

(11/18-22)

Mid-Continent Telephone Corp.

Oct.

Common

150,000

Co.)

1961 filed 25,000 common. Price—$10. Business
investment company which plans to

closed-end

Nicolaus

Corp

Systems

$1,120,000

—Debentures

(Blyth & Co., Inc.)

Union

Co.--

Airlines, Inc
(Smith,

Mosler

Life

(same address).

derwriter—Lincoln Securities Corp.

400,000 shares

Inc.)

Ultronic

Ohio

1963,,. filed 1,000,000 class B common. Price—
Business—A holding company for three life insur¬
firms.
Proceeds—For loan repayment, operating

expenses, and investment in other insurance concerns.
Address—714 Medical Arts Bldg., Oklahoma City. Un¬

Common

..Common

(The

'

28,

$1.25.

Common

Mid-Continent Telephone Corp.____—

,

Stuart

Medic Corp.

$275,000

Corp.)

Preferred

$7,000,000

Office—441

(F.

National

Midwest

bonds,
Proceeds—For loan repay¬
St., Boston. Underwriters—•

address.

$300,000

Co.)

&

Murphey.

Wulbern,

(Pierce,

1993.

1,

Shippers Dispatch Co

Co. of Florida

Life Insurance

due Dec.

$140,000

Life Affiliates Corp.
(First Philadelphia

;

.

a.m.

Anderson

E.

H,

Ordinary Shares

Co.)

&

(12/4)

Electric Co.

(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston Corp.; Merrill Lynch, Pierce, Fenner
& Smith Inc.; Eastman Dillon, Union Securities & Co.;
Kidder, Peabody & Co.; Blyth & Co-White, Weld & Co.
(jointly). Bids—Dec. 4 (11 a.m. EST) at above address.
Information Meeting—Nov. 27 (11 a.m. EST) at above

Debentures

Juniper Spur Ranch, Inc.—
(V.

Common

Jackson

Power Co.—
(Bids

Stk.

York.

Offering—Indef¬

named.

be

1963 filed $10,000,000 of first mortgage

21,

ment.

$190,000

Co.)

&

Baby Food Co., Ltd

shares

Inc.)

New

St.,

Broad

50

Baby Food Co., Ltd

(Brager

Inc

Webber,

(r-aine,

of

duPont,

Inc.,

; Mahoning Corp.
July--26, 1963 filed 200,000 common^ Price—$3. Business
—Company plans to engage in the exploration and de¬

(Thursday)

Bank
I.

By

Offering—Indefinite.

Israel

7

November

Stephen,

Underwriter—To

Massachusetts

$10).

Lunar Films, Inc.
Aug. 31, 1961 filed 125,000 common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—Foy
filming and production and working capital. Office—
543 Madison Ave., New York/ Underwriter — Ingram,

Israel

NEW ISSUE CALENDAR

—

Business—A diversified closedend investment company. Proceeds—For investment. Of¬
fice—26 Broadway, N. Y. Underwriter—Filor, Bullard &
Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd. Offering—Indefinite.

Lambert

Y.

initely postponed.

series

Oct. 14, 1963 ("Reg. A") 55,000 class A common. Price—
$5. Business—Company is an operating, holding and man¬
agement company specializing in the life insurance in¬
dustry. Proceeds—For working capital. Office—40 Ex¬

33

Marshall Press, Inc.May 29, 1962 filed 60,000J common. Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬
lishing a sales catalogue, developing a national- sales
staff and working capital.
Office—812 Greenwich St.,

sales promotion, and other cor¬
Office—33-00 Northern Blvd., Long
Island City, N. Y. Underwriter—T. W. Lewis & Co., Inc.,
debt repayment,

—For

(1829)

velopment of Canadian mineral properties.-Proceeds—•
For general corporate purposes. Address—402- Central
Tower Bldg., Youngstown; Ohio. Underwriter—None.

New York. Offering—Indefinite.

(11/18-22)

Inc.

("Reg. A") 300,000 common. Price -— $1.
Business—Construction of a gasoline and diesel oil fill¬
ing station, a restaurant and allied facilities. Proceeds—
For general corporate purposes. Underwriter —■ V. E.;
Anderson & Co., Newhouse Bldg., Salt Lake City.
May 27,

.»■

lows and basic, assemblies, therefor..Proceeds—For equip¬

June 28,

Inc.

April 10, 1963 filed 500,000 capital shares. Pricrj — Net
asset value plus 8V2%. Business—A new mutual fund
seeking capital appreciation. Proceeds—For investment.
Office—467 Hamilton Ave., Palo Alto, Calif. Underwriter
—Mutual Fund Distributors, Inc. (same address).
• ;rJuniper

(C

The Commercial and Financial Chronicle

...

March
Potomac

10,

to

be

1964

Edison

received)

(Tuesday)

Co.__*
^

Bonds

,

$5,000,000

<mo

rmnnnn

—Bonds

34

The Commercial and Financial Chronicte

34

Continued

from

New

33

page

13, 1961 filed 475,000 common, of which 400,000 are
to be offered by the company and -75,000 by a
stock¬
holder. Price—50 cents. Business—Exploration, development and mining. Proceeds—General corporate purposes
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. McPherson & Co., Toronto.
.
r, ;

V;

Middlesex Water Co.

Price—By amend-'
Business—Collecting and distributing
V water in certain areas of New Jersey.-' Proceeds—For
debt repayment. Office—52 Main St., Woodbridge, N. J.
Underwriter—Kidder, Peabody & Co., Inc.; New York.
1963 filed 35,000 common.

(max. $36).

New

•

Life

National

Midwest

(11/7)

Co.

Insurance

(Competitive). Probable bidders: Halsey, Stuart & Co.

Midwest Technical

26,

1962

n e s s—A closed-end management investment
Proceeds—For general corporate purposes.
Office—2615
First National
Bank
Bldg., Minneapolis.

B u

$7).

i

s

Underwriter—None.,
•

Missouri

■.,///
■.■/. .,//■-..
(11/19)
Oct. 7, 1963 filed 100,000 preferred (par $100). Proceeds
—For loan repayment and construction. Office — 441
Stq,art St., Boston. Underwriters—(Competitive). Prob¬
able bidders: First Boston Corp.; Dean Witter & Co.-;
Smith, Barney & Co.- Wertheim & Co. (jointly); Equi¬
table
Securities
Corp.- Kidder, Peabody & Co. - Lee
Higginson Corp.-White, Weld & Co.- (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner &
Smith Inc.Eastman Dillon, Union Securities & Co. (jointly). Bids

(11/25-29)

Insurance Co.

Life

^Sept. 27; 1963 filed 103,500 capital shares.

Price — By
(max. $6). Business—Writing of life, acci¬

amendment
dent

health

and

insurance

Proceeds—For

policies.

an

acquisition and working capital. Office — 1006 Grand
Ave., Kansas City, Mo. Underwriter—Sterling, Grace &
Co., New York.y
Mobile

Home

Parks

Development Corp.

—Nov.

Jan. 28, 1963 filed

1,250,000 common. Price—$2.50. Busi¬
plans to develop mobile homes, parks

ness—Company
and

residential

For

general

real

Seville, Spain.
Mohawk

'

estate.

Baker

Investment

-

!

Service,

repayment and equipment.. Address—
Airport, Utica, N. Y. UnderwTiter—Smith,
Barney & Co., Inc., New York.
Safe Co.

y

-

(11/7)

Ira Haupt & Co.,

Mustcaro

•

v,f'"

Inc.

60,000 common. Price

("Reg. A")

—

$5,

—

.

equipment,

debt

repay¬

Box

working capital. Address—P. O
10901, Pittsburgh. Underwriter—Johnston, Lemon &

general

Co.,

Washington, D. C.

/

•

National

Equipment & Plastics Corp.
Sept. 28, 1961 filed 105,000 common. Price—$5.
—Operation of
ated

and

registration will be

Note—This
1

Corp.

1963

(11/15)

500,000 common and 500,000 pre¬
($6 par);, to be offered in units of five preferred
and Jive common shares. Price—$35 per unit. Business—
Company plans to engage in the life insurance business
through the formation of two subsidiaries, or through
the purchase of stock in an
existing insurance company.

debt repayment, store ex¬
capital.
Address—Portage, Pa.
Investing Corp., N. Y. Note—

working

12,

filed

Proceeds—For

This registration will be withdrawn.

acquisition of above stock, loan repay¬
and working capital. Office—2201 Northwest 41st
St., Oklahoma City. Underwriter—Equity Underwriters/
Inc.- (same address).
ment

National Fence

Manufacturing Co., Inc.
Nov. 29, 1962 filed 100,000 common. Price—$8.75.
ness—Manufacture
welded

of

galvanized

chain

link

Busi¬
fence,

reinforcing fabric, gates and related
products., Proceeds—For construction of a plant in Ireland, and working capital.
O f f i c e—4301
46th St.,
-

Bladensburg,
Co.;' New

Md.

York.

-

Underwriter—Netherlands

Note—This

registration
•■//■

drawn.

Securities

will

with¬

be

National Memorial Estates

Oct.

v

-

1962 filed 4,750,000 common. Price — $1. Busi¬
Company plans to engage in cemetery develop¬
ment and to establish and operate a life and disability

ness

11,

—

insurance

concern. Proceeds—For general corporate
Office—13 Si Broadway, Red Lodge, Mont;
derwriter—Security Brokerage Co., Billings., Mont.

poses..

National
Dec.

28,

tificates,

pur¬

for

stock,
Proceeds

face

$1.15.

amount

certificates

Price—For

■

•

.V-

Business—A

mortgage

National

Union

each

Nov.
rine,

share
13.

held

Price

of
—

Co.

common

record

$12.

of

Washington
being offered for sub¬

the basis of

Oct.

Business

14.
—

1.78

shares for

Rights will expire

Writing of fire,

casualty and property insurance.

Proceeds

—

ma¬

For

general corporate purposes/Office—1511 K St., N.
W.,
Washington. D. C,
Underwriters—Ferris & Co.. Wash¬
ington, D. C., and McDonnell & Co., Inc., New York.
Natural

Sept.
>,

7,

Gas &

1962

filed

Oil

—For

drilling

Producing Co.
of

expenses,

porate

natural

A

basis

of

unit

one

one

for

beverages. Proceeds—For working capital, loan repay¬
ment, sales promotion and equipment. Office—1035 N. W,
21st Terrace, Miami. Underwriter—Consolidated
Secu¬
rities Corp., Pompano
Beach, Fla.
Outlet

Mining Co.,

tal.

1962 filed

900,000 common. Price—$1. Business
Proceeds—For equipment and working capi¬

Address—Creede, Colo.
Pacific

Underwriter—None.

common.

ment

and operating expenses/ Office—1218 N.
Ave., Phoenix. Underwriter—None.

Pacific Northwest

1963

subscription

Central

and

oil.

Price—$5
Proceeds

working capital and other

cor¬

City

Research

1963 filed

28,

filed

by

Bell

Telephone Co.

1,903,750

stockholders

common

on

the

to

be

basis

(11/25)
offered

of

one

advances from parent, A. T. & T.
fice—1200 Third Ave., Seattle. Underwriter—None.
repay

Pacific Power & Light Co.

for

each

20

Fund,

Stock

common.

Inc.

//

,

April 11, 1963 filed 1,000,000 common. Price—Net asset
value plus 8V2%/ Business—A new mutual fund. Pro-M
ceeds—For investment. Office—316 North Fifth

marck, N. D. Underwriter

—

(same address).

■

St., Bis-Jfj
Provident Management Co.M
'*/
(11/20)

Puget Sound Power & Light Co.

filed $40,000,000 of first mortgage bonds
due Nov. 1, 1993. Price—By amendment. Business—Fur¬
nishing of electric service in the. Puget Sound-Cascade
region of Washington. Proceeds — To redeem the out¬
standing 5V2% bonds due 1989 and the 5%s of 1990. Ad¬
25,

1963

dress—Bellevue, Wash. Underwriters — Merrill Lynch,
Pierce, Fenner & Smith Inc., and Blyth & Co., Inc., New
-

■

■

•

Quality National Corp.

/

Sept. 16, 1963 filed 200,000 class A common. Price — $5.
Business—Company plans to form a subsidiary life in¬
company. Proceeds—For general corporate purOffice—2904 Georgian Court, Lincoln, Neb: Un-

surance

■

*

derwriter—None.

'

Racon Inc.
Vv//:;//; ;///>/ ;///•/■/. ' /:://•//./',/
1963 filed 1,250,000 common. Price—$1. Business
—Company plans to manufacture fluorocarbons for sale
to refrigerant wholesalers, the aerosol industry and other
users. Proceeds
For construction of a new plant and

/

r

.

Oct. 3,

—

shares

held

of

§

working capital. Office—11 North Jackson St., Houston.
Underwriter—None.
V
•

(11/11-15)

Ramo Inc.

.

1963 filed $2,000,000 of 6*4% subord. sinking
fund debens. Due Oct. 1, 1975. Price—At par. Business—
Sept.

16

Company processes domestic and imported nutmeats for
to food distributors, supermarket chains and other
wholesale outlets. Proceeds—For construction of a new

sale

plant, and working capital. Address—84th St., and West
Dodge Rd., Omaha, Nebr. Underwriter—First Nebraska
Securities

Corp., Lincoln, Nebr.
Plantations

Rassco

for
new

Of¬

on

the

record

to

be

offered

basis of; one share
30, 1963. Rights

Oct.

will expire Dec. 5,. 1963. Proceeds—For debt repayment.
Office—920 S. W. Sixth Ave., Portland, Ore.
Under¬

writers—(Competitive)//Probable

bidders: Kidder, Pea¬

body & Co.; Blyth & Co.; Ladenburg, Thalmann & Co.;

|
|5
fi

Ltd.

|

vates, processes and markets citrus fruits in Israel. Pro- /
ceeds—For selling stockholder. Address—Tel-Aviv, Is- f
rael. Underwriter—Rassco of Delaware, Inc., New York. §
Offering—Expected in December;

v//.

Recreation Industries, Inc.
Nov. 23, 1962 -("Reg. A") 75,000 common/ Price
v

For

capita)
West

411

—

$2.

entertainment. Proceeds—■

travel and

of

investment, and working capital; Office—
St.j Los Angeles. Underwriter—Costello,
Co., Beverly Hills, Calif. Offering—Indefinite.

7th

Capital Corp.

1963 filed 400,000 common. Price—$12.50; Business—A small business investment company. Proceeds—

Sept. 3,
For

Office—2909

investment.

Bay-to-Bay, Tampa.

& Co., St. Petersburg, Fla. \

derwriter—Hensberry

Un¬
,

Corp. of Missouri
1962 filed 125,000 class A common and three-

Nov.

27,

year

warrants

offered
rant.

and

to purchase 1,250 class A shares to be
consisting of four shares and one war¬

units

in

Price—$32
and

erect

sell

acres

—

R.

unit.

per

operate

80

construction.
writer

for

/

27,

-

Business—Company will
and resort facilities,

luxury hotel

a

of land

for home sites.

Office—3615

Olive

L. Warren Co., St.

"

'

St.,

Proceeds—For

St. Louis.

Under¬

Louis. Offering—Indefi¬
A''-'

(11/13)

common

jp

/

1963 filed 400,000 ordinary shares. Price—By
amendment (max. $3,166).
Business — Company cultiAug.

nite.

/

Inc.

Lands,

40,000

Resort

share for each 16 held of record Nov. 18.
Rights will
expire Dec. 16. Price—$17. Business—Furnishing of tele¬
phone service in Washington, Oregon and Idaho. Pro¬
ceeds—To

/

tA
Price—$25. Busl-/|
ness—Purchase and sale of real property, chiefly un- |
improved land.:'Proceeds—For debt repayment, and ac-/|
quisition of additional properties.
Office—195 Nassau
St., Princeton, N. J.
Underwriter—None.
fj
March

Research

Price—$1.50, Busi¬
ness—Company plans to explore iron deposits on its
property. Proceeds—For mining operations, debt repay¬

28,

(11, 25-29)

Sept. 10, 1963 filed $2,500,000 of 6M>% subordinated sink¬
ing fund debentures due 1978; 375,000 common and 250,000 warrants to purchase additional common, to be of¬
fered in units consisting of one $100 debenture, 15 shares j
and warrants to purchase an additional 10 shares. Price j
—$175 per unit. Business—Company plans to operate a
harness racing track in Luzerne County, Pa. Proceeds—;
For construction, and loan repayment. Address — 504
First National Bank Bldg., Wilkes-Barre, Pa. Underwrit¬
er—Suplee, Yeatman, Mosley Co., Inc./Philadelphia.

Russotto &

Mines, Inc.

July 24, 1963 filed 100,000

Oct.

'

;

Inc.

Downs,

Business—Sale

Inc.

27, 1963 filed 717.408
subscription by stockholders

(1.1/25-29)

common.

gas

purposes.
Office—Tekoil Bldg., Oklahoma
Underwriter—Peter Morgan & Co., N. Y.




the

on

Sept.

180,000 class

Business—Production

stockholders in units of

common

warrant,

■

Insurance

on.

one

three shares held of record Oct. 25. Rights will
expire Nov. 14. Price—$1.75.., Business—Company is en¬
gaged in the production of rum and other alcoholic

•
*

Aug. 12, 1963 filed 64,000
scription by stockholders

and

each

cer¬

poses.

Kansas.

subscription by

Feb. 28,

—
For general corporate pur¬
Office — 113 S. Hydraulic, Wichita, Kan. "Under¬
writer—National Mortgage Agency, Inc., (same address).
Note—This offering will be made
only in the State of

company.

for

share

—Mining.

and 300,000 common shares.-

$762;

.

/-•>..

July 29, 1963 filed 225,836 common, and warrants to
purchase an additional 225,836 common, being offered

Un¬

Mortgage Corp., Inc.

1962 refiled $8,000,000

{series 20)
loan

Old Florida Rum Co.

concrete

Price—$10. Business

and

ferred

Business

cleaning and pressing plant and affili¬

Underwriter—Cortlandt

Okliana

Sept.

Proceeds—For

stores.

pansion

a

expansion

vithdrawn.

Fleetwood Securities.

—

Pocono

poses.

Proceeds—For

ment,

Massapequa, N. Y. Underwriter
Corp., New York.

•

ment

Price—$6. Business—?
foods. Proceeds—For
Office—40 Brooklyn Ave.,

purposes.

writer—^None.

York.

services.

common.

—Company plans to engage in the writing of general
liability insurance, including automobile, property dam¬
age and personal injury. Proceeds—To increase capital
and surplus. Office—307 Lenox Ave., New York. Under¬

Engineering Corp.
March 29, 1962 filed 100,000 common. Price—By amend¬
ment (max. $15). Business—Research and development
on
contracts using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬

^

1963 filed 100,000

3,

Oct.

Nuclear Science &

;

Office—62

Insurance Co.

People's

/

Provident

Oct. 29, 1963 filed 50,000 common.
Production of Italian style frozen

corporate

damage insurance. Proceeds—For investment.

Ltd.

Design, construction, sale and operation of
hydrofoil vessels. Proceeds—For working capital, office
expansion and other corporate purposes. Office — 428
White-Henry-Stuart Bldg., Seattle, Wash. Underwriter
—Henry D. Tallmadge Co., Seattle.

Ill Broadway,

Brothers, Inc.

New World Distributing Co
' / - / /•\/:
/ •/

—

Hydrofoil,

SepO, 1963
Business

Municipal Investment Trust Fund, Series B
April 28, 1963 filed $10,000,000 (10,000 units) of interests.
Price—To be supplied by amendment.
Business—The
fund will invest in tax-exempt bonds of states, counties
municipalities and territories of the U. S. Proceeds—For

Offering—Expected in early 1964.

eluding accident and health insurance, automobile insur¬
ance, workmen's compensatoin-insurance
and property

Princeton

29,

Northwest

ment, and mechanical and electronic security products.
Proceeds—For selling stockholders. Office — 320 Park
Ave., New York. Underwriter—Blyth & Co., Inc., N. Y.

—

Inc.

amendment

common. Price—By amend¬
ment. Business—Manufacture of safes, bank vault equip¬

New York.

Fund,

1963 filed 60,085 capital shares. Price — By
(max. $3.25). Business—Acquisition of oil
and gas properties, and the production of crude oil and
natural gas. Proceeds—For selling stockholders. Office
—5455 Wilshire Blvd., Los Angeles. Underwriter—Gregory-Massari,, Inc.; Los Angeles. Offering—Indefinite.

July

Oct. 16. 1963 filed 350,000

investment. Sponsor

World

Nordon Corp.

Oneida County

Mosler

New

Angeles.
Underwriter
(same address).
■

(11/7)

loan

.

EST) at above address,. Information
(11 a.m. EST) at above address.

a.m.

21, 1963, filed 250,000 common. Price—Net asset
plus 8*/2%, Business—A new mutual fund. Pro¬
ceeds—For investment. Office—4680 Wilshire Blvd., Los

Sept. 24, 1963 filed $6,000,000 of convertible subordinated
debentures due Nov. I, 1978. Price—At par. Business—
Company provides short-haul air transportation service
ceeds—For

(11

value

fn 50 cities in the eastern half of the United States. Pro¬

-

19

Feb.

St.,

.

Airlines, Inc.

..

England Power Co.

Meeting—Nov. 14

Proceeds—

Office—82

purposes.

Underwriter—Overseas

Atlanta.

.

commercial

and

corporate

|

Business—Company writes various types of insurance in-

Oct.

New

;

National

Insurance Co.
-//-J /// •}.'/'' \ :
18, 1963 filed 565,218 capital shares to be offered
for subscription by stockholders on the basis of one new
share for each share held of record Oct. 3>
Price—$8. J
Peerless

Maple Ave., Keene, N. H. Underwriter—None.

address.

company.

Meet¬
'•

.-/ /•

Oct.

ly); Merrill Lynch, Pierce, Fenner & Smith Inc.-Kidder,
Peabody & Co.-White, Weld & Co. (jointly); First Bos¬
ton Corp. Bids—Nov. 19 (12 noon EST), at above address.
Information Meeting—Nov. 14 (11 a.m. EST) at above

Development Corp.

filed 561,500 common to be offered for
subscription by stockholders on the basis of one share
for each two shares held.
Price—By amendment (max.

-Feb.

Securities &

ly); Kuhn, Loeb & Co.-Eastman Dillon, Union Securities
& Co.-Salomon Brothers & Hutzler-Paribas Corp. (joint¬

St.! Louis.

.Stifel, Nicolaus & Co., Inc.,

Securities Corp..(joint¬

Inc.; Lehman Brothers-Equitable

Address—Empire Bldg.,- Springfield,.Mo. Underwriter—

Union

Services, Inc., 2 Rector St.; New York. Information
'■r

>

(11/19)

England Power Co.

Dillon,

ing—Nov. 7 (3:30 p.m. EST) same address. *'i v-

1963 filed $10,000,000 of first mortgage bonds due
Nov. 1, 1993. Proceeds — For loan repayment and con¬
struction. Office—441 Stuart St., Boston. Underwriters—

Sept. 17, 1963 filed 160,000 common.- Price—$7. Business
—Sale of life insurance. Proceeds—For working capital.
.

\

Oct. 7,

Offering—Indefinite.

Thursday, November 7>- 1963^

Co.-Bear, Stearns & Co.-Dean Witter/& Co. (jointly).
Bids for Compensation—Nov. 13 (11 a.m. EST) at Ebasco

Oct.

merit

.

Brothers-Eastman

Lehman

Mines Ltd.

Island

Campbell

..

s

'

June 5,

.

.

(1830)

Retirement

Foundation,

Inc.

April 8, 1963 filed 100,000 memberships in the Founda¬
per membership.
Business—Company
retirement centers for the use of rent-free
private homes and apartments by members upon their
retirement. Proceeds—For working capital, construction

tion.

Price—$10

will operate

and

other

corporate

purposes.

Office—235 Lockerman

^

Volume

St., Dover, Del.

Number 6314

198

..The Commercial

.

Riviere Realty

22,

filed

1963

Trust
2,000

shares

beneficial

of

interest.

Price—$1,000. Business—Company plans to operate as a
real estate investment trust. Proceeds—For investment.

Washington, D. C. Underwrit¬
er—Riviere, Marsh & Berens Securities Corp., Washing¬
(11/12)
Oict. 23, 1963 filed 141,035 class A shares. Price — By
amendment (max. "<$20). Business—Production of popu¬
lar-priced sportswear for girls and children. Proceeds—
For selling stockholders. Office — 1372 Broadway, New
York. Underwriter
Shearson, Hammill & Co., New
Togs, Inc.

•, San Morcol

Pipeline,

Offering—Indefinitely postponed.

Virginia Electric & Power Co. (12/10)
Oct. 25,
1963 filed $30,000,000 of first and refunding
mortgage bonds due Dec. 1, 1993. Proceeds—For debt
repayment and construction. Office—700 East Franklin
St., Richmond, Va. Underwriters—(Competitive). Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Broth¬
ers & Hutzler-Goldman, Sachs & Co. (jointly); Eastman

July 26, 1963 filed 155,000 common. Price—By amend¬
ment (max. $15). Business—An insurance holding com¬

Proceeds—For

Office—520 S. W. 6th

expansion.

Ave., Portland, Ore. Underwriter—None.
World

Trans

-

Airlines,

Inc.

(11/13)

17, 1963 filed $80,962,000 of outstanding 6V2% sub¬

Oct.

Securities & Co.-Merrill Lynch, Pierce,
Inc.-Lehman Brothers (jointly); White,
Weld & Co.; Stone & Webster Securities Corp. Bids—
Dec. 10 (11 a.m. EST) at One Chase Manhattan Plaza,
(Room 2414), New York. Information Meeting—Dec. 5
(11 a.m. EST) at One Chase Manhattan Plaza, (30th
Dillon, Union

ordinated income debentures due June 1, 1978, and war¬

rants to

Proceeds -— For construction. Office — 219
Shelby St., Santa Fe, N. M. Underwriters •--- Milburri,
Cochran & Co., Inc., Wichita, Kan., and Midland Securi¬

Fenner & Smith

purchase3>185,974common shares tb be offered

rants to

well, N. M.

ties Co., Inc., Kansas City, Mo.
Saul

Oct.

(B.

Real

F.)

<

Investment Trust

Estate

filed 30,000 shares of beneficial interest.
Price—$100. Business—Company plans to operate as a
re;al estate investment trust. Proceeds—For investment.
25,

1963

Office—925 Fifteenth St., N. W., Washington,

D. C. Un¬

derwriter—B. F. Saul Co. (same address).

(11/25-29)
Oct. 7, 1963 filed 125,000 common to be offered for
subscription by stockholders on a share-for-share basis.
Price—By amendment (max. $7.50). Business—Company
Security Title & Guaranty Co.

examines and insures titles to

For

real property. Proceeds—

general corporate purposes. Office—17 E. 45th St.,

New York.

Underwriter

New York Hanseat'c

—

Corp.,

New York.

Financial

Selective

Feb.

ate,
B

filed 500,000

1962

be

to

Fermer & Smith

of which 405,00<

Life

face amount of debentures and war¬

Inc., New York.

World

Trans

Life

/

/ /

floor), New York.

Co.

Insurance

Offering—Expected sometime in Novemper.
•

Ultronic

(11/18-22)
Sept. 25, 1963 filed 150,000 common. Price—By amend- ;
ment (max. $12). Business—Manufacture of electronic
securities and commodities quotation systems. Proceeds
—For loan repayment, and other corporate purposes
Blvd., Pennsauken. N.

N, Crescent

Remaining 94,822 and any unsub- /
publicly. Price-—1To publi<

held.

scribed shares will be offered

Business—Company plans to eng;age in the consumer finance, mortgage, general fi-'
nuance and related businesses.
Proceeds—For genera)
corporate purposes. Office—830 N. Central Ave.. Phoe¬
$B; to stockholders, $5.

nix.'^Underwriter—None.

J. Un¬

York.

(same address).

Unimed,

to be offered/for sub¬

scription by stockholders on the basis of one new share

preparations. Address

development

on

new

202, Morristown, N. J. Underwriter—None.

Oct. 21, 1963

Squire For Men, Inc.
July 9, 1963 ("Reg. A") $135,000,of 8% convertible de¬
bentures due 1969. Price — At par
($100). Business —
Manufacture and sale of custom hair pieces. Proceeds—

Office—315 N. 12th Blvd., St.
(Competitive). Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers-Blyth &
Co., Inc.-Eastman Dillon, Union Securities & Co.-Bear,
Stearns & Co. (jointly); Salomon Brothers & Hutzler;
White, Weld & Co.-Shields & Co. (jointly); First Boston
Corp. Bids—Nov. 20 (11 a.m. EST) at Bankers Trust Co.,
16 Wall St., New York. Information Meeting—Nov.
18
(11 a.m. EST), same address.
;. /

working capital. Office—328 S
Beverly Dr., Beverly Hills, Calif. Underwriter—Samuel
B;.. Franklin & Co., Los Angeles.
For

products and

new

Stein

&

Roe

Farnham Foreign

Fund,

Inc.

July 1, 1963 filed 1,000,000 capital shares. Price—Net as¬
set value. Business—Company was recently formed and
will succeed to New York Capital Fund, Ltd.. a Canadian

corporation. It will provide investors a means of in¬
vesting in Canada, Western Europe and other foreign
areas.

Proceeds—For investment.

Office—135 S. LaSallf

St., Chicago. Underwriter—None.
Supreme Life Insurance Co. of America
Sept. 30, 1963 filed 42.089 common to be offered for
subscription by stockholders on the basis of one share
for each three shares held. Price—$30. Business—Sale of

life, health and accident insurance in 12 states and the
Proceeds

District of Columbia.
ahd working

—

For debt

repayment,

capital. Office—3501 S. Parkway, Chicago.
'
•
'••/'.// / ' /■
i

Underwriter—None.

,

I. Sutro Mortgage Investment Trust
Feb.

1963 filed 30,000 shares of beneficial interest
Price—$100. Business — A real estate investment trust
1,

investment.

Proceeds—For
Los Angeles.

Office—4900

Wilshire

Blvd.

Underwriter—None.

Teaching Machines, Inc.
April 1, 1963 filed 150,000 common. Price—$5 BusinessCompany develops and sells teaching machines ex¬
clusively for Grolier Inc. Proceeds—For loan repayment
and

other

Office—221 San Pedro
N. E. Albuquerque. Underwriter—S. D. Fuller & Co.
New York. Offering—Expected in March, 1964/
corporate

Tecumseh

purposes.

Investment

Co.,

Inc. >

Jan. 21, 1963 filed 48,500 common.

Business

company. ^

Proceeds—For

Government Bonds and

Lafayette

Life

Amosand Inc.

Bldg.,

in

new

subsidiary.

Lafayette,

U. S
Office—801

investment

Ind.

in

Underwriter—

(same address).

Office—315 N. 12th Blvd., St. Louis. Under¬
(Competitive). Probable bidders: First Boston
Corp.-White, Weld & Co.-Shields & Co. (jointly); Mer¬
rill Lynch, Pierce/ Fenner & Smith Inc.-Lehman Broth¬
ers/jointly); Blyth & Co.-Eastman Dillon, Union Secu¬
rities & Co.-Salomon Brothers & Hqtzler (jointly). Bids
purposes.

writers—

(12 noon EST) at Bankers Trust Co., 16 Wall
St., New York. Information Meeting—Nov. 18 (11 a.m.

—Nov. 20

EST),

Inc.

packaging products.
Proceeds—For working capital.
Address—Elsa, Texas. Underwriter—To be named. Of¬
fering—Indefinite.

Top Dollar Stores, Inc.
May 1, 1962 filed 200,000 common, of which
be

offered

by

company




address.

holding company for United Investors Fund/Corp, (a
broker-dealer which sells mutual funds)
and United
A

Capital Life Insurance Co. of Minnesota.
increase capital
and surplus of United

Proceeds—To
Capital Life

.Insurance Co. of Minnesota. Address—1300 First

National

Minneapolis. Underwriter—None.

Unitog Co.
Oct.

21, 1963
—

42,750 common.

("Reg. A")

Address—Kansas

distribution

and

Manufacture

Price

—

$7.

S.

Controls, Inc.

City, Mo. Underwriter—Bar¬

'V

-

ing of timber, and production of various wood products.
Proceeds
For selling stockholder. Address — Tacoma
—

Bldg'.,

Underwriter—Morgan Stanley &

Wash.

Tacoma,

Co., New York.
Penn

William

shares to

and 10 shares.

Price—$220 pe* unit. Business—Company
conduct harness racing with pari-

licensed to

been

betting.

mutuel

working capital.

phia.

of 6V2% sinking fund de¬

100,000 class A non-voting com¬
be offered in units of one $100 debenture

1978 and

due

bentures

has

Racing Association

8, 1963 filed $1,000,000

March

Proceeds—For debt repayment and
Office—3 Penn Center Plaza, Philadel¬

&

Underwriter—Stroud

Co.,

Inc., Philadelphia.

Offering-—Indefinite.
Winslow

Electronics, Inc.

1961 filed 125,000 common.

Dec. 28,

Price—$4. Business

and manufacture of precision electrical
electronic measuring devices and test equipment.

and

—Design

Pro¬

and other corporate pur¬
Ave., Asbury Park, N. J.

debt repayment

First

Underwriter—To be named.

Young

Industries, Inc.

30, 1963 filed 100,000 class A common and war¬
rants to purchase an additional 50.000 class A shares,
to be offered in units of 50 shares and warrants to pur¬
Sept.

chase 25 shares.

Com¬

Price—$501.25 per unit. Business

primarily shopping
centers, in Kentucky. Indiana, Ohio and Tennessee. Pro¬
ceeds—For debt repayment and property acquisitions.
Office—508 West Jefferson St., Louisville. Ky. Under¬
development of real estate,

mercial

writer-—None.

Issues Filed

With SEC

,

Aug. 8, 1963 filed $210,000 of
and warrants to

.

of industrial

ret, Fitch, North & Co., Inc., Kansas City, Mo.
U.

of Commerce Bldg.,

Proceeds—For selling stock¬

uniforms, and accessories.

•

>, v

Transmission Corp.

poses.Office—1005

July 29, 1963 filed $500,000 of 6% convertible debentures
due 1973 to be offered for subscription by stockholders
on
an
unlimited basis.
Price — At par.
Business—

Business

Wyo.

ceeds—For

(Minn.)

Investors Corp.

Bank Bldg..

Address—Suite 412-413 Hynds Bldg., Cheyenne,
Underwriter—C. B. Hoke Agency, Cheyenne, Wyo.
Note—The SEC has issued an order temporarily sus¬

poses.

63/4% debentures due 1973

This Week

purchase 31,500 shares to be offered for

public sale in units of one $100 debentures and 15 war¬
Price-—$100 per unit.

Business—Development and

heating equipment and automatic control
systems. Proceeds—For inventory, sales promotion, note
prepayment and working capital. Office — 410 Fourth
Ave., Brooklyn, N. Y. Underwriter—To be named.
manufacture of

July 27, 1962 filed 313,108 common. Price—$3.50. Busi¬
ness—Operation of a plant producing plastic film and

tb

same

United

of iron by the new "Taylor Process." Proceeds
plant construction and general corporate pur¬

tain types
—For

mon

(11/20)

21, 1963 filed 200,000 preferred ($100 par). Proceeds
—For debt repayment, construction and other corporate
Oct.

rants.

Texas Plastics,

purposes.

Electric Co.

Union

P r i c e—$1.
produce cer¬

Weyerhaeuser Co. (11/14)
/
Oct. 24, 1963 filed 400,000 capital shares. Price — By
amendment (max. $35). Business—Growing and harvest¬

Louis. Underwriters—

holders.

Price—$100.

4-A holding company which plans to organize a life in¬
surance

filed $30,000,000 of first mortgage bonds due
Proceeds—For debt repayment, construction, and

1993.

Inc.

purposes. Office — 1907 Chamber
Houston. Underwriter—None.

(11/20)

Union Electric Co.

repayment of bank loans. Office—1012 Mercantile Bank
Bldg.. Dallas. Underwriter—None.
° 1

other corporate

Steel,

17, 1963 ("Reg. A") 245,000 common.
Business—Company plans to erect a mill to

plans to operate a natural gas
gathering system in the south central part of Wyoming.
The gas to be sold initially, will be purchased from U. S.
Natural, which has agreed to guarantee the payment of
all expenses approved by U. S. Natural for the company's
organization, financing and other start-up costs. Proceeds
—For construction, working capital, and other corporate

existing products, and

research and

f<pr each 17 held. Price—By amendment. Proceeds—For

Western

$1. Business—Company

Inc.

Sept. 3, 1963 filed $300,000 of 5Vfe% convertible subordi¬
nated notes due 1973. Price—At par. Business—Develop¬
ment and manufacture of ethical drugs and pharmaceu¬

—Route

&

be withdrawn.

tion will

for

Unified Underwriters, Inc..

—

writer—Shields

working cap¬
Mobile, Ala. Under¬
Co., Inc., N. Y. Note—This registra¬

purchase of vessels, and

Sept. 16, 1963 filed 1,162,537 capital shares to be offered
subscription by holders of the capital stock and 6%
convertible subordinated debentures due 1977 of U. S.
Natural Gas Corp., on the basis of one share of Western
Transmission for each U. S. Natural share held. Price—

value

Proceeds—For investment. Address—207 Guaranty

Indianapolis. Distributor

;

Saint Joseph St.,

Office—71

Western

1963 filed 750,000 capital shares. Price — Nel
plus 8Y2%. Business—A new mutual fund
Bldg..

Aug. 22,
asset

Proceeds—For the

ital.

pending this issue.^

Inc.

ticals. Proceeds—For marketing of

Southwestern Electric Service Co.
C»ct. 24, 1963 filed 24,428 common

Unified Mutual Shares,

,

Jan.

Systems Corp.

derwriter—Bache & Co., New

Steamship Corp.

Waterman

Aug. 29, 1961 filed 1,743,000 common. Price—By amend¬
ment.
B u s i n e s s—The carrying of liner-type cargoes.

.

July 31, 1963 filed 465,000 common/Price—By amend¬
ment (max. $5). Business—Company plans to sell genera]
life and disability insurance policies. Proceeds—To in¬
crease
capital and surplus. Office—609 Sutter St., San/
Francisco. Underwriter—Alex. Brown & Sons, Baltimore

Office—7300

common,

share and

S elective

of $1,000

for subscription by

offered

the basis of 4 company shares for each class A oi
two-thirds share for each class C share o?

on

units

purchase 27 shares. Price—By amendment (max.
$1,300 per unit). Business — Company provides world¬
wide air transportation services. Proceeds—For selling
debenture holder, Hughes Tool Co. Office—380 Madison
Ave., New York. Underwriter—Merrill Lynch, Pierce,

holders of the A
and C stock of Selective Life Insurance Co., an affili

a;-:e

B

28,

Corp.

in

Underwriter—To be named.

Mont.

dress—Sidney,

Transpacific Group, Inc.

pany.

inch

1963, filed 328,858 common. Price—$1. Business
new mutual fund.
Proceeds—For investment. Ad¬

—A

natural gas transmission pipeline for the
cities of Las Vegas, Wagon Mount, Springer, and Max¬

eight

Inc.

Investors,

Valley
Jan. 23,

exploration and working cap¬
Office—201 E. 4th St., Casa Grande, Ariz. Under¬

writer—None.

(12/23-27)

Inc.

Sept. 27, 1963 ("Reg. A ') $300,000 of 6V2% subordinated
debentures due Nov. 1, 1983, and 45,000 common to be
offered in units of $500 face amount of debentures and
75 shares. Price — $500. Business—Construction of an

Business—Manufacture of uremaiie
equpiment, working
capital,
leasehold expenses and other corporate purposes. Olfice
—2300 Republic National Bank Bldg., Dallas.
Under¬
writer—First Nebraska Securities Corp., Lincoln, Neb.
Proceeds—For

ital.

s

Inc.

unit.

per

foams.

Proceeds—For equipment,

—

York.

be

Inc.

Resources,

35x

filed 250,000 class A and 250,000 common to
offered in units of one share of each ciass.
Price—

$5.05

1962 filed 500,000 capital shares.

28,

,

Feb. 14, 1962

Price—$1.50.
lousiness—Exploration, development and production of
the Lake Shore copper deposit near Casa Grande, Ariz
May

ton, D,C.
Russ

a

housewares, etc.

stores selling' clothing,

Transarizona

Office—1832 M St., N. W.,

•

retail

ice

of Texas,

Urethane

chain of self-serv¬
Pro¬
ceeds—For expansion, equipment and working capital.
Office—2220 Florida Ave., Jasper, Ala.
Underwriter—
Van Alstyne, Noel & Co., New York.
Offering—Teihporarily postponed.
Business—Operation of

Price—$6.

Underwriter—John D. Ferguson, Dover

Del.Offering—Indefinite.

Oct.

(1831)

Financial Chronicle

and

and

100,000

100,000

are

by stockholders.

United Variable Annuities

Fund, Inc.

April 11, 1961 filed 2,500,000 shares of stock. Price—$10
per share. Business—A new mutual fund.
Proceeds—For
investment.
Office—20 W. '9th Street, Kansas City, Mo
Underwriter—Waddell

&

Reed,- Inc., Kansas City, Mo.

i Consumers Cooperative Association
1963 filed $9,000,000 of 5Vi>% subordinated

Nov. 4,

ficates of indebtedness

preferred
stock:

and

/

stock: 40.000 shares of
400

common.

certi¬

shares of 5V2%

4% second preferred
Busi-

Price—By amendment.

purchasing and lnanutacassociation for local farmers coops in the rnlc*"

uess—a

turing

due 1988; 120,000

cooperative wholesale

/~i

i.;M

,,

^i/-7

rt/rnz)

\rx

•'

/

.

The Commercial and Financial Chronicle

Continued jrom page
west.
—3315

Oct.

New York.

,

Western

+ First

25,

Price

Real Estate

Investment Trust

shares of beneficial interest.
real estate investment trust.
development of real estate. Office—2037
Boulder, Colo. Underwriter— Grondrezick

1963 filed 200,000
$5.
Business — A

Proceeds—For

Thirteenth St..

Securities Corp., Boulder,

and Goldman, Sachs & Co.,

Kidder, Peabody & Co., Inc.,

35

Proceeds—For general corporate purposes. Office
N. Oak Trafficway, Kansas City. Underwriter—

None.

v

.

,

Inc.

if Tidmarsh Ventures,

28, 1963 ("Reg. A") 42,850 common.
Business—GeneraL construction, equipment
Oct.

Price

—

$7i

leasing and
installation of cryogenic and hydraulic systems. .Pro¬
ceeds—For new construction projects, debt repayment,
and working capital. Office—15618 Broadway, Gardena,
Calif. Underwriter—Quinn & Co., Albuquerque, N. M.

Colo.

Address—American Road, Dearborn, Mich.
Underwriters—First Boston Corp.; Blyth & Co., Inc.;
Goldman, Sachs & Co.; Kuhn, Loeb & Co. Inc.; Lazard
Freres & Co.; Lehman Brothers; Merrill Lynch, Pierce,
Fenner & Smith Inc.; White, Weld & Co., Inc.; Dean
Foundation.

if Garan, Inc. (12/2-6)
Nov.. 6, 1963 filed 140,000 common, of
shares will be sold for the company and

(11/12)
the company announced plans to sell
$5,100,000 of 1-15 year equipment trust certificates.
Office-—547 W. Jackson Blvd., Chicago.
Underwriters—
1963

7,

Probable bidders: Salomon Brothers &
Sti&art & Co., Inc. Bids—Nov. 12 (12
at above address.

(Competitive).

Hutzler; Halsey,

CST)

noon

Columbia Gas System,

Aug.

40,000 for cer¬
Price—By amendment.
Business—
Manufacture of men's and boy's sport shirts. Proceeds—
For general corporate purposes. Office—112 W. 34th St.,
New York. Underwriter—Bache & Co., New York.

Registrations

Effective

registration statements were de¬
clared effective this Week by the SEC. Offering

The following

carried in the
Monday issue of the "Chronicle."

sey, Stuart & Co.
Salomon Brothers

Price

—

$3.,

of life insur¬

"A" ordinary
by stockholders at
new share for each

shares and 5,147,500

ordinary

1,793,750

offered for subscription

shares being

$1.22 per share, on the basis of one
two like shares held of record Nov. 7. Rights will expire
25.

New York, is the

Inc.,

& Co.,

Loeb

Kuhn,

principal underwriter.
Charleston Rubber Co.

16,750 common offered at $17.50 per share by Johnson,
Coleman, Manning & Smith, Inc., Charleston, S. C.

derwriter—None.

$1,048,750 of unsecured 5% convertible debentures due
Aug. 1, 1988 offered at 105%, plus accrued interest from
Aug. i.

(Paul) Inc. (12/9-13)
Nov. 4, 1963 filed $7,000,000 of convertible subordinated
debentures due 1978. Price—By amendment. Bu iness—
Construction of missile launching bases and related fa¬
cilities for the Armed Forces, and complex facilities of
various types for other government agencies, private in¬
dustry, and foreign governments. Proceeds—For debt
repayment, Address — Stanton, Calif.
Underwriter—
Hemphill, Noyes & Co., New York.
if Hardeman

if Hoham, Inc.
4, 1963 filed $850,000 of 6% convertible subordi¬
debentures due 1978, and 25,500 shares of class
A stock to be offered in units consisting of $500 of de¬

Railroad &

First

Banking Co. of Georgia

,

& Sons, Inc. :f:.;

(Alex.)

Forst

$5.50 per share by Arnold,

common offered at
Wilkens & Co., New York.

100,000

State Telephone

Intra

Co.

16. No underwriting is

Shaker

nated

180,000 shares of beneficial interest being
per share by McDonald & Co., Cleveland.

unit. Business—
Manufacture of new equipment principally for the food
and drug industries. Proceeds—For working capital, and
loan repayment. Office—1720 Military Rd., Tonawanda,
N. Y. Underwriter—Doolittle & Co., Buffalo, N. Y.

Properties

offered at $15

ATTENTION UNDERWRITERS!

Oct. 30, 1963 it was reported that stockholders voted to
increase the authorized $5 par capital stock to provide

additional shares to stockholders on
share for each 17 held of record
Oct. 30. Rights will expire Nov. 25. Price—About $30.
Proceeds—To increase capital funds. Office—116 Fifth
Ave., New York. Underwriter—Francis I. duPont, A. C.
Allyn, Inc., New York.
sale of 45,617
basis of

ordinated debentures due 1973. Price—At par. Business
in Oregon and
bakery.
Pro¬
N. River Rd.,

to

similar

—Operation of wholesale grocery houses
Washington,/four packing plants and a
ceeds'—For' working capital. Office—326

Would
write

those

you

us

Satellite Corp.Y

reported that a registration statement
will be filed in December covering about $200,000,000
of this firm's common stock to be issued in two series.
1963 it

Series

I

was

will

sold

be

to

proved communications common
of

ized

the

telegraph, television and other communications.. Office
Klingle Rd., N. W., Washington, D. C. Under¬
writers—To be named. Offering—Expected in early 1964.
Connecticut Yankee Atomic Power Co.

April 23, 1963 it was reported that the 12

us

REctor

at

at 25 Park Place, New

2-9570

Underwriters—To be named.

Edison

Consolidated

of

Co.

or

Proceeds

—

Probable

$12.

equipment, sales promotion, new prod¬

loan repayment,

ucts, inventory and working capital. Address—Third &
B St.. Melbourne, Fla. Underwriter—Hampstead Invest¬

ing Corp., New York.

Bids—Expected Dec.

holding company, primarily for life insurance con¬
cerns. Proceeds — For prepayment of bank loans, and

—A

expansion. Office

—

246 North High St., Columbus, O. "

Underwriters—Kuhn, Loeb & Co., Inc., and J. C. Brad¬

Nashville.

ford & Co., Inc.,

if Nuveen Tax-Exempt Bond Fund, Series 6
Nov. 1, 1963 filed 150,000 units of interest in the Fund.
Price—By amendment. Business—The Fund plans to

government and municipal obligations believed
Federal income taxes. Proceeds—

invest in
to

be

exempted from

investment. Office—135 So. LaSalle St.,
Sponsor—John Nuveen & Co. (same address).

>For

1963 filed $4,000,000 of convertible subordinated

debentures due

1978.

Price—By amendment. Business-

Residential real estate development. Proceeds—For debt

repayment. Office—7844 E. Rosencrans Ave., Paramount
Calif. Underwriters—Kidder, Peabody & Co., Inc., New
York and Mitchum, Jones & Templeton Inc., Los An¬
geles.

Nov.
ment

valves and fittings,

automotive parts, and pre-shool-age
toys. Proceeds—For selling stockholders. Office—2400
Buhl Bldg., Detroit. Underwriter—Smith, Barney & Co.
Inc., New York.

r

★ Mott's Super Markets, Inc.
Nov.

and 70,000 for certain stock¬
is a short haul motor
common
carrier operating in Michigan, Ohio, Indiana
and Illinois. Proceeds—To retire outstanding 6% cumu¬
sold

1,

1963

filed

100,000

^

Price—By amend¬
(max. $15). Business—Operation of super markets
liquor package stores in Conn. Proceeds—For work¬
common.

the

for

company

Business

holders.

—

Company

preferred stock. Office — ,15 Andre St., S.
Rapids, Mich. Underwriter — Hornblower

lative
Grand

Weeks. New York.

Offering—Indefinitely postponed.

sell
$3,390,000 of equipment trust certificates due Dec. 1,
1964-78. Office—220 East 42nd Street,

New York. Under¬

(Competitive). Probable bidders: Salomon
Brothers & Hutzler; Halsey, Stuart & Co. Inc. Bids—
Nov. 20 (12 noon EST), at above address.
<

writers

—

Bank of the Southwest N. A.;

(Houston)

stockholders had ap¬
proved a 2-for-l split and the offering of 100,000 $10
par shares to stockholders on the basis of one new share
16, 1963 it was reported that

each

for

held of record

20

Oct.

15.

Rights will expire

1963, Arthur B. Homer, Chairman, announced
will embark on a $750,000,000 capital

that the company

improvement program to be completed by 1965.
He
that approximately two-thirds of the financing for
will be generated internally and the bal¬
secured externally.
Mr. Homer added that this

program

until at least 1964. O f f i c e—25
Underwriters—To be named. The
last public sale of securities in May, 1955, was handled
by Kuhn, Loeb & Co., and Smith, Barney & Co., New
would not be required

Broadway, New York.

York.

y

•
,

Central

Illinois

ers—(Competitive). Probable bidders: Salomon Brothers
& Hutzler; Blyth & Co.-Kidder, Peabody & Co.-Merrill
Lynch, Pierce, Fenner & Smith Inc. (jointly); Halsey,
Stuart & Co. Inc.; Eastman Dillon, Union Securities &
Co.
Equitable
Securities
Corp.
(jointly);
Lehman
Brothers-Bear, Stearns &
(jointly); White, Weld
& Co.
-.1. v
il
.\,u
x'. Wt'-k?
iu '•
V
4
THS .t'

1988.

Price—By

amendment.

Business—Production

of commercial animal and
bean

poultry feeds, the sale of soy-,
oil, and grain merchandising. Proceeds—For equip¬

ment, additional inventonries and working capital
dress—Checkerboard




Ad¬

Square, St. Louis. Underwriters—

Mid-1964

On Oct. 2, 1963,

-

,

■

to sell $20,-

Earlier, the company said that it planned

000,000 of debentures. No decision has been reached on
the type or amount of securities to be sold in 1964.
Office
212 West Michigan Ave., Jackson, Mich.
Un¬
—

Halsey,
Co./
Inc.-First Boston Corp.
(jointly); Morgan Stanley & Co., Salomon Brothers &
Hutzler-Blyth & Co.-Lehman Brothers-Merrill Lynch,j

derwriters

—

(Competitive). Probable bidders:

White, Weld
(jointly); Harriman Ripley & Co.

Stuart

Co.

&

Inc.;

(jointly).

Pierce, Fenner & Smith Inc.
Control

& Co.-Shields &

Data Corp.

16, 1963 it was reported that the company plans
of $25,000,000 or more of securities sometime
A company spokesman stated that the timing

Sept.

sale

the

1964.

of issue, will depend on market conditions at
—
8100 34th Ave., South, Minneapolis.
The last sale of debentures^

time. Office

on

Aug. 28,

1962 was handled by Dean

Witter & Co.,

Chicago.
Power

Duke

Co.

Sept. 17, 1963 it was reported that the company has ten¬
tative plans to issue $50,000,000 of first mortgage bonds
in the second quarter of 1964. Office — 30 Rockefeller
Plaza,
able

Corp.;
rities

New York. Underwriters—(Competitive).
Halsey, Stuart & Co. Inc.; First

bidders:

Prob¬
Boston

& Webster Secu¬

Morgan Stanley & Co.; Stone
Corp.

General Aniline & Film Corp.

Public Service Co.

if Ralston Purina Co.
due

1963 the company stated that it had postponed
its plans to raise additional capital.

7,

until

said

ance

Brothers, N. Y.

Power Co.

Underwriter—To be named.

it was reported that the company plans
to sell $20,000,000 of bonds in the third quarter of 1964.
Office-—607 East Adams St., Springfield, 111. Underwrit¬

(11/20) '
1963 filed $35,000,000 of sinking fund debentures

Oct.

the

Bethlehem Steel Co.

Co., Inc., and Lehman

Loeb &

Consumers

and type

ing capital. Office—59 Leggett St., East Hartford, Conn..
Underwriter—W. C. Langley & Co., New York.
Nov. 1,

—

Kuhn,

—None.

the

plans to

operation of three retail food chains and one retail drug
store.
Proceeds — For acquisition of Booth Fisheries.
Office
135 So. LaSalle St., Chicago. Underwriters—

in

6,

26,

Corp.

publicly from 102,000 to 350,000 common shares,
following the acquisition of Booth Fisheries Corp., on
Jan. 15, 1964. Business—Consolidated is engaged in the
manufacture of a wide line of food products and the

1964. Price—$45. Proceeds—To increase capital
funds. Office—900 Travis St., Houston, Tex. Underwriter
Jan.

ment
and

E.,
&

^- Atlantic Coast Line RR. (11/20)
Nov. 4, 1963 it was reported that this road plans to

Feb.

(11 /25-29)
1, 1963 filed 200,000 common. Price—By amend¬
(max. $20). Business—Manufacture of plumbing

i- Masco Corp.

Foods

offer

Associated Truck Lines, Inc.

Oct.

(11/25-29)

if Macco Realty Co.
Oct. 30,

Chicago.

EST), at above address.

10, 1963 it was reported that the company

Oct.

Sept. 18, 1963 it was reported that 110,000 common shares
of Associated will be sold publicly, of which 40,000 will
be

if Nationwide Corp. (12/2-6)
Nov. 1, 1963 filed 1,250,000 class A and 500,000 class B
common. Price—By amendment (max. $17.50). Business

a.m.

Consolidated

Prospective Offerings

For

(12/11)

York

stated

Place, New York. Underwriters—(Competitive).
bidders: Halsey, Stuart & Co. Inc.; Morgan

Irving

York 7, N. Y.

the company

11.(11

electronic instruments and devices.

-

New

that it plans to sell
$75,000,000 of first and refunding mortgage bonds, due
Dec. 1, 1993. Proceeds—For construction. Address*— 4
1963

31,

Stanley & Co.; First Boston Corp.

—

utilities which

jointly own this new firm, have petitioned the SEC for
exemption from the Public Utility Holding Company Act
to permit the negotiated sale of $55,000,000 of the firm's
bonds. The request has been opposed by a major under¬
writer who wants the bonds to be sold at competitive

^.Industrial Electronetics Corp.
Oct. 25, 1963 ("Reg. A") 25,000 common. Price

Business—Design, manufacture and sale of specialized

Price—Maxi¬

carriers.

$100 per share. Business—Congress has author*
company
to provide satellites and ground
facilities for the international transmission of telephone,
mum

Milwaukie, Ore. Underwriter—None.

I

that produce

the public, firms

exploration equipment and other non-communi¬
cations concerns.
Series II will be issued to FCC-ap¬
space

Oct.

that we can prepare an item
you'll find hereunder.

telephone

new

Communications

•

know about it so

to

one

Oct. 7,

ton.

have an issue you're planning to register?
Corporation News Department would like

Our

Y.)

(N.

bidding. Business—Company was formed in December,
1962, to own and operate a 500,000 kw. atomic power
plant at Haddam Neck, Conn. Proceeds—For construction
of the $70-$80,000,000 plant. Office—441 Stuart St., Bos¬

Do you

if Hudson House, Inc.
Oct. 28, 1963 ("Reg. A") $250,000 of 6% redeemable sub¬

Indefinitely

—

(11/7)

stock¬
shares
expire

involved.

Nov.

15 shares. Price—$510 per

Offering

Hutzler.

&

—3029

8,983 common being offered for subcsription by
holders at $100 per share, on the basis of two new
for each five held of record Oct. 21. Rights will
Dec.

Inc.; Blyth & Co.-Lehman Brothers-

Commercial Bank of North America

the

B. M.

Leumi le-lsrael

Bank

real estate and mutual funds. Proceeds—For debt
repayment, working capital, and purchase of a promis¬
sory note. Office—10 Commerce St., Newark, N. J. Un¬
ance,

that it plans to sell

postponed.

details, where available, will be

Nov.

if Greater Continental Corp.
Oct. 28, 1963 ("Reg. A") 70,000 common.
Business—Company is engaged in the sale

Inc.

the company stated

27, 1963

for

'which 100,000

stockholders.

bentures and

Chicago Burlington & Quincy RR

Oct.

—(Competitive). Probable bidders: Morgan Stanley &
Co.-First Boston Corp. (jointly); Merrill Lynch, Pierce,
Fenner & Smith Inc.-White, Weld & Cc. (jointly); Hal¬

Witter & Co.

tain

Thursday, November 7, 1963

.

$25,000,000 of debentures to raise money for construc¬
tion. Office —120 E. 41st St., New York.
Underwriters

if Ford IVIotor Co. (11/20)
Nov. 1," 1963 filed 4,000,000 common. Price—By amend¬
ment. Proceeds—For the selling stockholder, The Ford

,

.

.

(1832)

36

;>

-

General Robert F. Kennedy an¬
reached an
Swiss hold¬
ing company, designed to settle the 20-year old dispute
over control of the 540,894 class A and 2,050,000 class B
shares of General Aniline seized by the U. S. Govern¬
ment in 1942 as a German asset. The stock represents
98% of the voting control of the company. Mr. Kennedy
said that if General Aniline should be sold for $200 mil¬
lion, the Government would receive about $140 million
April 3, 1963 Attorney

Justice Department had
out-of-court agreement with Interhandel, a
that

nounced

-

'

<

•

the

••

j

_

...

.

.

.

u^MU-a.

i-tU,

U

,

i

i«,

j ffili' ;l» I'M

Number 6314

198

Volume

.

.

.

The Commercial and Financial Chronicle

about $60 million. The settlement terms,
approved by Interhandel stockholders, also
must be approved by the U. S. District Court at Wash¬
ington, D. C. Business—Company is a leading domestic
producer of dyestuffs, chemicals and photographic ma¬
terials. Office—111 W. 50th St., New York. Underwriters
—(Competitive). Probable bidders: Blyth & Co.-First
Boston Corp. (jointly); Lehman Brothers-Kuhn, Loeb &
Co.-Glore, Forgan & Co.' (jointly); Bache & Co.

and Interhandel

recently

Hartford

Electric Light Co.

April 30, 1963 the company announced plans to sell $15,$20,000,000 of securities in 1964 to help finance its $^6,000,000 construction program. Office—176 Cumberland

Underwriters — First BostOD
York; Putnam & Co., Hartford; Chas. W.

Ave., Wethersfield, Conn.

New

Corp.,

Scranton &

Co., New Haven.
Milling Co.

International

it expects to
first public
offering of common stock. The sale will include both a
primary and a secondary distribution. Business—Com¬
pany is one of the world's largest flour millers with op¬

July 8, 1963 the company announced that
file a registration statement covering its

countries. Proceeds—For expansion, re¬
debt repayment. Address—1200 Investors

erations in five

and

search

Minneapolis. Underwriter

Bldg.,

Co., Inc., New York.

—

Kidder, Peabody &

^

Interpublic Inc.

reported that this company is plan¬
ning its first public stock offering. Business—A holding
company for advertising agencies, public relations firms
Oct. 30, 1963 it was

media. Office—750
Underwriter—To be named.

and other communications

York.

New

Iowa

Power &

Third Ave.,

Light Co.

16, 1963 it was reported that the company plani
to sel $10,000,000 of bonds in the last half of 1964. -Of¬

Jan.

Underwriters—(Com¬
petitive). Probable bidders: First Boston Corp.; White,
Weld & Co.; Halsey, Stuart & Co. Inc.; Equitable Securi¬
ties Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Lehman Brothers; Blyth & Co

fice—823 Walnut

•

St., Des Moines.

Irving Air Chute Co.,

Inc.

11, 1963 it was reported that the company plans
a registration statement shortly
covering $1,810,000 of 6% convertible debentures due 1975 to be offered
file

subscription by stockholders.

for

of

seat

belts,

Proceeds—For

Business—Manufacture

business machine parts and parachutes.
expansion, loan repayment and working

Office

capital.

1315 Versailles Rd., Lexington,
Fuller Co., New York.

—

Underwriter—S.

D.

Ky.

(Government of)
May 1, 1963 it was reported that the Government plans
to sell an additional $35,000,000 of external loan bonds
in the U. S. during the fiscal year ending March 31, 1964.
It is expected that the majority would be sold by Dec.
31, 1963. Underwriter—First Boston Corp., New York.
Japan

Kansas

City

Power

&

(jointly); Salomon Brothers & Hutzler-Eastman Dillon,
Securities
&
Co. - Equitable
Securities
Corp.

Union

(jointly).

:.V

\

Lynch, Pierce, Fenner & Smith Inc.

Merrill

1963, Michael W. McCarthy, Chairman, stated
that the company has held informal discussions with the
staff of the New York Stock Exchange as to the feasibil¬
Aug.

19,

ity of "going public." He added that, "when the time is

appropriate," Merrill Lynch will request the governors
to recommend that member firms approve the required
changes in the Exchange's constitution to permit this.
Industry sources believe that the move is several years
away. Business—Company, is the largest brokerage house
in the U. S. with 139 domestic offices and over 2,300 ac¬
count executives. Office—70 Pine St., New York.
Mexico

(Government of)

'

July 16, 1963 following the public offering of $40,000,000 of external bonds, it was reported that the Govern-;
of bonds in the U.
Loeb

&

to

authorized

is

ment

sell

additional

an

$65,000,000

S. and abroad. Underwriters—Kuhn,

Co., Inc., and First Boston Corp., N. Y.
Pacific

Missouri

Oct. 22,

1963 it

RR

(1/7/64)

reported that this road plans to sell

was

$6,600,000 of 1-15 year equipment trust certificates. Ad¬
dress—Missouri Pacific Bldg., St. Louis.
Underwriters—
(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—Expected Jan. 7,
1964 (12 noon CST), at above address.
Narragansctf Electric Co.

(1/14/64)

Oct.

22, 1962 it was reported that this subsidiary of New
England Electric System plans to issue $5,000,000 of
first mortgage bonds/series F, due 1994. Office—15 West¬
minster St., Providence, R. I, Underwriters—(Competi¬
tive). Probable bidders: White, Weld & Co.; Halsey,
Stuart & Co. Inc.; Salomon Brothers & Hutzler-Lehman
BrothersqGoldman, Sachs & Co, (jointly). Bids—Ex¬
pected Jan. 14, 1964.
York

New

Oct.

Central

RR

(12/4)

announced plans to offer
equipment trust certificates.
Ave., New York. Underwriters—
(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co., Inc. Bids—Dec. 4 (12
noon EST),
at above address.
1963

7,

$3,600,000

of

the

company

1-15

Light Co.

New

year

Electric & Gas Corp.

York State

reported that the company plans tc
sell $20,000,000 of debt securities to finance its construc¬
tion program for 1964 and 1965. Office—-108 East Greer
St., Ithaca, New York. Underwriters — (Competitive)
Probable bidders:
Kidder, Peabody & Co. - Salomon
Brothers & Hutzler (jointly); First Boston Corp.-Glore
April 3, 1963 it

was

York Telephone

(1/7/64)

Co.

'>:?•:

,

28, 1963 it was reported that this A. T. & T. sub¬

sidiary plans, to seir$130,000,000 of first mortgage bonds
Proceeds—To repay bank loans, refund $75,-

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.-First Boston Corp.
(jointly); Lehman Brothers-Bear, Stearns & Co. (joint¬
ly); Equitable Securities Corp. - Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co.-Shields
& Co- (jointly).

York.

Kentucky Utilities Co.
to

1963, it was reported that the company plans
$8-10,000,000 of bonds in the third quarter of
Office
20 South Limestone St., Lexington,,Ky.

sell

1964.

—

000,000 of outstanding 3% bonds maturing Oct. 15, 1964,
and finance construction. Office — 140 West St., New

Underwriters—(Competitive).

Probable

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. BidsExpected Jan. 7, 1964.
■
,

Norfolk & Western

(11/13)

Ry.

Oct. 1,1963 it was reported that this road plans to sell
approximately $7,000,000 of 1-15 year equipment trust
certificates in November. Office — 8 N. Jefferson St.,

Roanoke, Va. Underwriters — (Competitive). Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Brothers &
Hutzler. Bids—Expected Nov. 13 (12 noon EST) at the

company's Philadelphia office.

Co., Inc. (jointly); Eastman Dillon, Union Securities
Corp.-Merrill
Lynch, Pierce, Fenner
& Smith .Inc.

July 2, 1963 it was reported that this road plans to sell
about $4,800,000 of equipment trust certificates in De¬
cember.
Office—120 Broadway, New York. Underwrit¬

(jointly),

.•

Lanvin-Charles of the Ritz,

Inc.

^

reported that following the pro¬
of Lanvin-Parfums and Charles of the
Ritz, to be voted on by stockholders Nov. 14, E. L. Cournand, President, and certain other Lanvin stockholders
plan to offer publicly 800,000 common shares. Business
—Company is the U. S. distributor of Lanvin perfumes
and other fragrances, as well as cosmetic and toiletry
products. Office—767 Fifth Ave., New York. Underwrit¬
ers—Goldman, Sachs & Co., and White, Weld & Co., Inc.,
New York. Offering—Expected in late December.
Sept. 30, 1963
posed merger

it

was

Northern

Pacific

Ry.

(12/10)

Inc.; Salomon Bros.
Dec. 10 (12 noon EST).
Northern States

&

'

,

,

Power Co.

,

.

.

underwritten by

Oil Co.

6, 1963 it was reported that the company plans to
file a registration statement shortly covering an undis¬
closed number of common shares. Business—Exploration
Nov.

in July 1959 was

Merrill Lynch, Pierce, Fenner & Smith

properties. Proceeds—
expansion. Office—210 Mid-Continent Bldg., Tulsa,
Okla. Underwriters — Hayden, Stone & Co., Inc., and
Shearson, Hammill & Co., New York, t

and

development of oil and gas

For

Long Island

Lighting Co.

Aug. 29, 1963 the company announced plans to issue
$25-to-$30,000,000 of first mortgage bonds in each of the
years 1964 to 1968 inclusive, to help finance its $285,000 000 5-year construction program. Office — 250 Old

Mineola, N. Y. Underwriters—(Competi¬
tive) Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc.-First Boston Corp. (jointly); W. C. Langley

Country

&

Rd.,

Co.

Light Co.
Oct
16,
1963 it was reported that this subsidiary of
Middle South Utilities, Inc., plans to issue $25,000,000 of
bonds in second quarter of 1964. Proceeds—For construc¬
tion
Office—142 Delaronde St., New Orleans. Under¬
writers—(Competitive). Probable bidders: Merrill Lynch,
Pierce, Fenner & Smith Inc;-Kidder, Peabody & Co.-Harriman Riplev & Co., Inc. (jointly); White, Weld & Co.Louisiana

-

Power &

Inc.-Shields & Co. (jointly); Halsey, Stuart
Inc.;'First Boston Corp.-Glore, Forgan & Co.

Blyth & Co.,
&

*

Co.




maturing
Sts., Allentown, Pa.
last

sale

1963 the

25,

company

announced tentative plans

preferred in early 1964. Proceeds
—To refund 50,000 shares of outstanding 5.75%
pre¬
ferred. Office—735 S. W. Morrison, Portland/Ore.
Un¬
derwriter—Lehman Brothers, New York.
Tail

Power

16,

1963

preferred on March 8, 1950 was handled by Glore,
gan & Co., New York and Kalman & Co., Inc., St.

For¬
Paul.

(12/3)
plans to sell $50,000,000 of debentures due Dec. 1, 2000. Proceeds—To re¬
pay $48,700,000 debt due Pacific Telephone & Telegraph
Co., former parent.
Office — 1200 Third Ave., Seattle.
Underwriters—(Competitive) Probable bidders: Morgan
Stanley & Co.; Halsey, Stuart & Co. Inc. Bids—Dec. 3
(11 a.m. EST) at 195 Broadway, New York. Information
Pacific

Northwest

Bell Telephone Co.

Aug. 27, 1963 the company announced

Meeting—Nov.

26

(2:30 p.m.), same address.

Pacific Telephone

& Telegraph Co.

June 19, 1963 the company
million

of

new

money

Nov.

on

by

29,

White,

1961

Weld

was

won

at

com¬

&

Sept. 18, 1963 it was reported that the company is con¬
sidering the sale of $50,000,000 of first mortgage bonds
in mid-1964. Office
1000 Chestnut St.,
Philadelphia.
Underwriters—(Competitive). Probable bidders: Morgan
Stanley & Co.-Drexel & Co. (jointly); Halsey, Stuart
& Co. Inc.; First Boston Corp.;
White, Weld & Co.
—

Potomac

Edison Co.
(3/10/64)
16, 1963 it was reported that this subsidiary of Al¬
legheny Power System, Inc., plans to1 sell $12-$15,000,-

Oct.

of first

000

mortgage

bonds due

Patrick St., Frederick, Md.
Probable bidders:; W. C.

1994.

Office—200

East

Underwriters—(Competitive)

Langley & Co.-First Boston
(jointly); Halsey, Stuart & Co. Inc.; Equitable
Corp.; White, Weld & Co.-Shields & Co.
(jointly); Lehman Brothers-Eastman Dillon, Union Se¬

Corp.

Securities

curities

Co.-Harriman

&

Ripley & Co.-Merrill Lynch,
(jointly). Bids—March lo!

Pierce, Fenner & Smith Inc.
1964

(10

EST)

a.m.

at 320 Park Ave., New York.

Electric

Potomac

July 30, 1963 the

Power Co.

stated that it will need $50,000,000 of new money in 1964 for its construction pro¬
gram and expects to do permanent financing in the early

of the

part

amount
E

St.,

N.

company

However, it has not

year.

of

type

or

be

to

security

determined

the

Oiiice—929

oiierea.

Washington,

W.,

D. C. Underwriters—To be
1963 the company sold $50,000,000
of bonds to
Dillon, Read & Co., Inc.; Lehman Bros.,
Eastman Dillon, Union Securities & Co., Stone & Web¬
On

named.

Feb.

19,

ster Securities Corp., and

Johnston, Lemon & Co. Other
Kidder, Peabody & Co.—Mer¬
rill Lynch, Pierce, Fenner & Smith. Inc.—White, Weld

bidders

the issue

on

were

& Hutzler

& Co.—Salomon Bros.

(jointly); First Boston

Corp.; Halsey, Stuart & Co.
it Powr-Pak,

Inc.

was reported that the company plans to
registration statement covering 1,000,000 of con¬
vertible debentures. At the same time, certain stock¬
holders plan to sell 125,000 outstanding common. Busi¬

it

4, 1963

a

ness—Manufacture
Proceeds

For

—

of various

loan

& Co.,

and working capital.
Underwriter—S. D. Fuller

New York.
Service Co. of Colorado

Public
June

types of aerosol products.

repayment,

Conn.

Address—Bridgeport,

V

>

4, 1963 it was reported that the company plans to

sell $35,000,000 of 30-year first mortgage bonds in April,
1964. Proceeds—For construction. Office—900 15th St.,

Denver, Colo. Underwriters — (Competitive). Probable
bidders: Halsey, Stuart & Co. Inc.; Harriman, Ripley &
Tnc.-Eastman Dillon, Union Securities & Co.-Mer¬

Co.,

rill Lynch,
Co

Pierce, Fenner & Smith Inc.-Dean Witter fiz

(jointly):

First

Corp.:

Boston

Lehman

Brothers-

Kidder, Peabody & Co.-White, Weld & Co. (jointly);
Blyth & Co., Inc.-Smith, Barney & Co. (jointly).
Oct.

Inc.
it was-reported that this firm plans to sell

7, 1963

about

$10,000,000 of securities in January.

terms

of the

The type or
offering have not yet been decided. Busi¬

ness—Manufacture of

cosmetics, supplies and equipment
— 261
East Fifth St., St. Paul,
Underwriter—Allen & Co., New York.

for beauty
Minn.

salons. Office

May 7, 1963 the company announced plans to sell $16,000,000 of debentures in the first quarter of 1964, but
may
do so earlier if market conditions are favorable.
Proceeds

stated that it will need $650
years 1964 through .1966 to

—

For

construction.

Office

bidHprs:

First

curities

10

Franklin

St.,

Pnctnn

Corp.: Eastman Dillon, Union Se¬
Peabody & Co. (jointly); Kuhn,

Co.-Kidder,

&

& Co.;

Halsey, Stuart & Co. Inc.

Ryder Systems, Inc.

Oct.

30, 1963 it

ized

the

company

convertible
offered

to

for

tures

22.

(11/22)

reported that the ICC had author¬
to issue a maximum of $5,500,000 of

was

subordinated

stockholders
each

40

debentures

on

common

due

basis of

the

shares

to

1983

$100

held

b©

of deben¬

record

of

Busi¬
in the fields of motor

Rights will expire Dec. 6. Price—At

ness—A holding company engaged

par.

freight carrying, equipment leasing and manufacturing.
Office
2701 So. Bayshore Drive, Miami, Fla.
Under¬
—

writer—Blyth & Co., Inc.,. New York.
San

Diego Gas &

Electric Co.

Sept. 10, 1963 it was reported that the company is con¬

sidering the sale of about $20,000,000 of debt securities
mid-1964. Office—861 Sixth Ave., San Diego, Calif.

in

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Lnc.; Blyth & Co.; First Boston Corp.Eastman Dillon, Union Securities & Co.-Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Lehman BrothersSalomon Brothers & Hutzler (jointly).
Seaboard

Air

Line

RR.

(11/13)

announced that it plans to
sell $22,000,000 of first mortgage bonds due 1988 at com¬
petitive bidding in November. Proceeds—Fob loan reSept.

24,

1963 the

company

in the

help finance its $1.3 billion-construction program.^This

—

Rochester, N. Y. Underwriters—(Competitive). Probable

Nov.

Co.

it was reported that the company plans
to sell 30,000 shares of $100 par preferred stock in the
first quarter of 1964. Office—215 So. Cascade St., Fergus
Falls, Minn. Underwriter—To be named. The last sale of
Oct.

bonds

bidding

$8,-

bonds.
Office—9th and Hamilton
Underwriters—To be named
The

Co., and Kidder.
Peabody & Co.
Other bidders were Halsey, Stuart &
Co. Inc.; First Boston Corp.-Drexel & Co.
(jointly).
Philadelphia Electric Co.

•

to sell 50.000 shares Of

Otter

of

petitive

Loeb

Northwest Natural Gas Co.

Sept.

For construction and the retirement of

—

of

Rochester Telephone Co.

May 14, 1963 it was reported that the company plans tc
offer about 771,110 additional shares to stockholders or
a l-for-20 basis in 1964, to raise an estimated $25,000,000
Office—15 South Fifth St., Minneapolis. Underwriter—
To be named. The last rights offering

Morgan Stanley & Co.

,

(Minn.)

Inc., New York.
it Livingston

000,000

Rayette,

Bids—Expected

Hutzler.

stated. Office—140 New Mont¬

was

tendered by

was

Proceeds

'

ers—(Competitive). Probable bidders: Halsey, Stuart &
Co.,

it

year,

Pennsylvania Power & Light Co.
March 18, 1963 the company stated that it
expects to sell
$75,000,000 of bonds in the period 1963 through 1967.

bidders:

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co.-White, Weld
&

the issue

file

New

a

16, 1960 was under¬
by Halsey, Stuart & Co. Inc. One other bid on

written

Ripley & Co.; Blyth & Co.

in January.

On Oct. 2,

securities

Nov.

16, 1963 it was reported that the company plans to
sell $18-$20,000,000 of, first mortgage bonds in January
1965. Address -r 1330 Baltimore Ave., Kansas City, Mo.
Oct.

that the company must sell about $217 million of

means

Forgan & Co. (jointly); Halsey, Stuart & Co.; Harriman

Oct.

37

gomery St., San Francisco. Underwriters—To be named.
The last issue of debentures on Feb.

Office—466 Lexington

Sept.

to

(1833)'

/

.

..,-v.

•

.

Continued

on

page

38

*w«wiWiHw»wWttWiiTOI^^

The Commercial and Financial Chronicle
38

payment and working

capital. Office
—

Oct.

Texas

-

Tokyo

(jointly); White, Weld & Co.-Stone & Webster Securi¬
ties Corp.
(jointly); First Boston Corp.-Blyth & Co.
(jointly); Eastman Dillon, Union Securities & Co.tSmith, Barney & Co. (jointly); Lehman Brothers-Bear,
Stearns & Co. (jointly). (Preferred Stock) White, Wei#
& Co.-Stone & Webster Securities Corp. (jointly); First
Boston Corp.-Blyth & Co. (jointly); Kidder, Peabody &
Co.; Eastman Dillon, Union Securities & Co.-Smith, Barfney & Co.-Salomon Brothers & Hutzler (jointly); Lehi-

(City of)

March, 1927,

handled by Kuhn, Loeb & Co. Offer¬

was

Trans

World

that it is considering

ments

Yuba Consolidated In¬

New
on

dustries, Financial Corp. of Amer¬
ica and Portland General Electric.
Motors—Comments—

General

Walston e &

Co.,

Wall

74

Inc.,

10005.

Street, New York, N. Y.

N.

Caterpillar Tractor, and

Philadelphia Electric.

&

Co.,

&

Co.,

300

Fourth

North

is

a

Chemical

Broadway,

120

Y. 10005. Also avail¬
Pennsalt

of

survey

Corp.

Maust Coal

Coke

&

ysis—Gerstley,

Inland Natural Gas—Comments—

211

Gairdner

Corp.—Anal¬

phia, Pa. 19107.

320

&

Bay

Company

Street,

Limited,

Toronto

Ont.,

1,

Canada.

Mineral

Chemi¬

&

cals—Analysis—Hemphill,
&

Co.,

8

an

Noyes

Street,

Hanover

York, N. Y. 10004.
is

New

Also available

analysis of Transcontinental

Bus System.

Pool

Major

Report

—

70

Inc.,

Steel

Richard

International

Reynolds

Corp.

Equipment

—

Wall

Street,

New-York,

Murray

Corp.—Analysis—

Co.,

Dept.

120

CFC,

Broadway,

Ohio

Co.

&

Co.,

Marietta

W.,

Street,

N.

11

Homes—Bulletin—B.

and

Paddington

Corp.

R

—

Hochstin

Scheinman,

America

Kulman

—

Co.,

Analysis

Street,

&

Trotta,

N. Y.

Drug

&

Chemical

Co.—

Special Trial Subscription Offer s
SUBSCRIBERS

Sinclair

A

spokesman

eral

New

has

Exchange,

following

the

issued

for

comment

York

the

on

Fed¬

in

raising

margin

require¬

Co.

&

300

10022.

"The

Park

Avenue, New York, N. Y.

Incorporated,

available

comments

are

on

Ingersoll Rand, Minnesota & On¬
tario

Plate

Glass,

Armco

Exchange

the

Philip

Sheet

&

Morris,

Tube

and

U. S. Rubber.

-Y,

is

Board

ing

healthy

credit

the

economy.

does

not

25 Park Place

New

C.

—

M.

Oliver

&

of

rants

such
taken

for

maintain¬

the

securities

current

credit

substantial

by

the

Vancouver

ties

is

Inc.—Analysis—B ell

Farrell Inc.,

&

119 Monona Avenue,

Madison, Wis. 53703.

war¬

Union

Carbide

Harris,

Corp.

Upham

Analysis

—

&

Co.,

120

Broadway, New York, N. Y. 10005.

steps

Federal

original
ments

Transcript

texts

and

of

shares

Re¬

of

reports

brokers

in

line

and

issue

Transcript,

$1

Dept.

credit

Reade

Co.,

40

Wall

-

Sterling

Alstyne,
Street,

Inc.

Noel

New

—

&

York,

complete

Green, Erb Adds
Ohio

—

Irwin

include

many

and

er

extend

broker/dealers
credit

to

customers. At the end of

ber,

the

tended

firms

to

of

billion,
value

amount

Septem¬

the

all

of

by

Exchange

1.35%

or

credit

of

customers

of

shares

centage
narrow

has

ex¬

member
$5.3

was

the

listed

remained

range

Moreover,

their

market
the

on

per¬

within

a

since World War II.

the

market

margin accounts
$16

of

value

was

billion at the

of September, or about three

"In

amount of the credit.

the

past

decade, the num¬

Payton has been added to the staff

Address




York

Stock

from

about three billion to more

than

eight

Superior
—

'

n,ty-_:

ber

of

Green,

::

■

•

■

•

:■

'

Erb

&

Building,

Co.,

Inc.,

members

the Midwest Stock Exchange.
was

The
of

He

formerly with Morrow & Co.
bivrb

and Prescott & Co.

Committee,

comes

of

,

By his election, Mr. Veitch be¬
member

a

tion's official

the

—

Council
Associa¬

governing body. Ho

Thomas

succeeds

the

of

Administration

E.

McFarlaqd,

Senior

and

Trus

;

Rochester

of The Lincoln

Officer

took

election

of

ference

place at the

Trust

the

Con¬

Trust

Annual

Seventeenth

Division

oi:

the New York State Bankers As¬
sociation

the

at

Hotel Manger

The

Rochester.

Trust

iri

Division

Securities traded

which

on

not

times the

S.

Estate

Trust

Chairman

as

represents all the active trust de¬
Exchange partments of banking institutions)
issues which were in New York State.

approximately

CLEVELAND,

Firm

,

previously traded over-the-count¬

end

obligation.

served

the New York Stock

collateral in

information regarding our special trial subscription offer to

the

with

com¬

reprinted

cross-indexed—Current
Street

Full

—

securi¬

on

show that such

listed.

Association.

Bankers

Division.

Trust

Chairman

Trust Co. of Rochester.

figures

generally

New York

as

credit, issued monthly by the

could

Street

State

recently
the

Vice-Presideirt

Co.,

elected

Vice-President

growth in the number and value

on

N. Y. 10005.

the Commercial and Financial Chronicle without

York

|

Division of th# New

Trust

The

latest

Exchange,

Canada.

1, B. C.,

Analysis—Van

Fill out the coupon below and we will send
ypu

in

Exchange

the

Trust

aware

conditions

But

Veitch,

has been

of the

:

yesterday.

"The

Company,

Limited, 821 West Hastings Street,

Walter

York, N. Y. 10007

,

J.

Irving

City,

Steel Co. of Canada Ltd.—Analy¬

10005.

CHRONICLE

of

of

fully

believe that

level

serve

■v'.Y

;

.

responsibility of the Fed¬

Reserve

those

Woolworth,

Youngstown

Manville,

Johns

Paper,

Pittsburgh

of

eral

Edward

He
\

Exchange at that time. This
•

the

Reserve Board's action Tues¬

O i 1—Comments—Evans

928, 54 Wall $t., New York, N. Y.

FINANCIAL

Elects Officers

ments:

—Wall

The COMMERCIAL

On Margin Rise

day

10006.

—

York, N. Y. 10004.

Trust Division

—

Gordon,

Broad

50

—

NYSE Comments

Stock

rt

e p o

New York,

Broadway,

Wall

NEW

C.

Security

Company,

Building, West Bend, Wis. 53095.

Swank,

;;/,/■

Old Line Life Insurance Company
of

Ormont

FOR

N. Y.

Atlanta,

M

C

York,

Ziegler

sis

Manufacturing

New

Pacific

Steel,

—Analysis—Courts

New

Ferguson—Comments—

Street, Philadel¬

Graham,

&

Co.,

&

New York, N. Y. 10005.

N. Y. 10005.
a s s e y

S.

Ga. 30301.

Hill, Thompson & Co.,

Sunstein

South Broad

McLouth

Broadway,

Also

Street, St. Louis, Mo. 63102.

Underwriters—(Competitive). Probable bidders? Kidded,

10006.

111

Ltd.—Survey—

Ferguson

Abraham

able.

Jones

Arm¬

on

Co;, Timken Roller

ada, Foxboro

Bearing,

New York, N. Y.

Co.—Report—Edward D.

Also

10004.

Y.

strong Cork, Ford Motor of Can¬

New York, N.

10004.:

Ill

parent

Associates, the latter'

Company was formed by Blackstone to take
over its gas properties. Proceeds—To the
selling stock¬
holder, Blackstone Valley Gas. Address—Pawtucket, R. I.
—

Peabody & Co.; Stone & Webster Securities Corp. f

Report—Havener Securities Corp.,

Street,

Broad

comments

are

Coggeshall & Hicks, 50 Broadway,
Gillette

25

Co.,

YO(Tk,

available

Massey

Motor s—Comments—

General

&

{

Price—At book value ($11.15 per share on Apr. 30,1963).
Business

Underwriter—None.

Dealer-Broker Recommendations
Hirsch

stone and Eastern Utilities

of the company's outstanding stock
would not subscribe for these debentures, but would
purchase an additional $30,000,000 principal amount of
the issue. Proceeds—To help finance the purchase of 12
Boeing jet aircraft. Office—380 Madison Ave., New York,

Co., holder of 78%

of common stock early in
1964 to help finance its $570,000,000 construction pro¬
gram. Office—1330 West Peachtree St., N. W., Atlanta,
Ga. Underwriters—To be named. The last sale of com¬
mon on Feb. 15, 1961 was made to a group headed by
Eastman Dillon, Union Securities & Co., Blyth & Co.,

from page 8

Inc.

1963 the company announced that it may offer
stockholders, sometime after mid-January 1964, the right
to subscribe for up to $8,500,000 of 5%% convertible
subordinated debentures due Oct. 1, 1983.
Hughes Tool

the sale of $35 to $40,000,000

"

,

Valley Gas Co.
Aug. 28, 1963 it was reported that the SEC had schedule#
a hearing for Oct. 10 on a
plan under which Blackstonje
Valley Gas & Electric Co., would sell its entire 400,000
shares holdings of Valley Gas to stockholders of Black-

Oct. 21,

(jointly).

Continued

Airlines,

Brothers.

man

ing—Indefinite.

Southern Co.

12, 1963 the company stated

/-v-':\

North/Temple St., Salt Lake City. Underwriters—(Com¬
petitive). Probable bidders (bonds): Salomon Bros. &
Hutzler; Halsey, Stuart & Co., Inc.; Kidder, Peabody &
Co.;
Merrill
Lynch,
Pierce, Fenner
&
Smith
Inc.

May 1, 1963 it was reported that the Diet had authorized
the sale of $20,000,000 City of Tokyo bonds in the U. S
during the fiscal year ending March 31, 1964.
Under¬
writer—To be named. The last issue of Tokyo bonds in

Co.

(Competitive). Probable bidders:
Inc.; First Boston Corp.-Dean
Witter & Co. (jointly); Blyth & Co.-Lehman Brothers'Merrill Lynch, Pierce, Fenner & Smith Inc.-Salomon

Aug.

M. A. Saunders & Co.,

—

' Y/kK/X

,

1963 it was reported that the company plans
$50,000,000 of first mortgage bonds in the first
of 1964. Office—601 West Fifth St., Los An-

Brothers & Hutzler

stockholders on
shares held of

that this road plans to sell

Hutzler; Halsey, Stuart & Co. Inc.; First National Bank
Dallas; Mercantile National Bank, Dallas. Bids—Ex¬
pected Dec. 12 (12 noon CST) at above address.

geles. Underwriters —
Stuart & Co.

■

share for each 7hj

6.

Utah Power & Light Co.
July 2, 1963 it was reported that this utility plans to sell
about $20,000,000 of bonds and $10,000,000 of preferred
stock in the second quarter of 1964.
Office-:-'1407 West

Halsey,

-

new

one

Nov.

Inc., Memphis.

(12/12)

Ry.

basis of

Ave., Memphis: Underwriter

in

21,

sell

Pacific

reported that stockholders voted to
stock to provide

was

Rights will expire Nov. 27./ Price—$40.
Proceeds—To increase capital funds. Office—61 Madison

$2,700,000 of 1-15 year equipment trust certificates. Ad¬
dress—916 Fidelity Union Tower, Dallas. Underwriters
—(Competitive). Probable bidders: Salomon Brothers &

—

to

&

Oct. 28, 1963 it was reported

(Memphis)

&

Read

Underwriter—Dillon,

Bldg., Dallas, Tex.
Co., Inc., New York.

Distributor—Allstate En¬

Southern California Edison

the

record

approximately $15,000,000 of first mortgage bonds
in the first quarter of 1964. Office—720 Mercantile Dal¬
las

Bank

(11/7)

Oct, 23, 1963 it

reported that the company plans to

was

'

„

National

Planters

Union

increase the authorized $10 par capital
for sale of 150,000 additional shares to

issue

(11/27) ,
Oct. 30, 1963 it was reported that the company had ap¬
plied to the ICC for permission to issue 150,000 out-standing common. Price—By amendment. Business
A
motor carrier operating in Ohio, Illinois, Michigan and
Indiana.
Proceeds
For selling stockholder.
Office
1216 West Sample St., South Bend, Ind. UnderwriterFrancis I. duPont, A. C. Allyn, Inc., New York.
Aug.

1963 it

6,

•

Public Service Co.

Southwestern

Shippers Dispatch Co.

quarter

writers—White, Weld & Co., and Stone & Webster Se¬

curities Corp., New York.

1963 it was reported that this subsidiary of Paci
Lighting Corp., plans to sell $27,000,000 of first mort¬
gage bonds in the fourth quarter. Address—P. O. Bo?
2736, Terminal Annex, Los Angeles 54, Calif. Under¬
writers—(Competitive) Probable bidders: White, Welo
& Co.; Blyth & Co. inc.; Merrill Lynch, Pierce, Fennei
& Smith Inc.; Halsey, Stuart & Co. Inc.; First Bostor
Corp.
'
'

Chicago.

Inc.,

•

fic

Roebuck & Co.
Feb. 19, 1963, Allstate Enterprises, Inc., subsidiary, announced that it had delayed its plans to form a new
mutual fund until it received clarification of an SEC
ruling which "has been construed by some to mean that
registered investment companies could not purchase
Sears' stock or would be required to divest themselves
©f it, if Sears' itself owned a mutual fund." Earlier, All»tate said that the fund would be in operation late m
1963 on a "very small scale," and would be started on
a state-by-state basis as approval was granted.
Office—
Ave., Chicago.

Corp.

Jan. 2,

Sears,

So. Homan

Pipe Line

.

Gas Co. of Calif.

Southern Counties

Gas

1963 the company announced that it plans to
sell $50-$55,000,000 of first mortgage bonds and possibly
some
preferred in the first half of 1964.
Business->Transmission of natural gas. Proceeds—For loan'repay¬
ment. Office—3100 Travis St., Houston, Texas. Under¬

ley & Co.-Kidder, Peabody & Co.-Merrill Lynch, Pierce.
Fenner & Smith Inc. (jointly).

3600 W. Broad St.,

(Competitive). Probable
bidders: Kuhn, Loeb & Co.-White, Weld & Co. (jointly);
First Boston Corp.; Eastman Dillon, Union Securities &
Co.-Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬
ly); Halsey, Stuart & Co. Inc. Bids--Noy. 13 02 noon
EST) at office of Wilkie, Farr, Gallagher, Walton &
FitzGibbon, One Chase Manhattan Bank, New York.

1

Thursday, November 7, 1963

.

Sept. 25,

Boston

Underwriters

Richmond. Va.

terprises,

.

Transcontinental

Equitable Securities Corp. Other bidders were: First
Corp.-Lehman Brothers (jointly); Morgan Stan¬

and

from page 37

Continued

925

.

,(1834)

of shares

these
from
1953

listed

$117
to

listed

on

the

Morrison, President

H.

Eugene
of

Co.^

Orange County Trust

the

Middletown,

elected

was

Viee4

Chairman.

elected the fol¬

Delegates also
lowing

three

members

of

to

men

serve

Trust

the

as

Division's

Executive Committee for terms or
three years:

Claude
Vice
and

F.

-

Manufacturers

President,

-

Executive

Shuchter,

Traders Trust Co., Buffalo.

C.

Howard

Judd,

Vice-Presi¬

dent, Morgan Guaranty Trust Co.,
New York

City.

Joseph B.

dent,
York

Koechel, Vice-Presi¬

of

Bank

New

City.

York,

Newt

~

New

Exchange has grown

billion. The

value of

shares has

increased

trillion at the end of

about, $400 billion today."

Joins Lakeland Sees.

j

Richard

J*

Wis.

MADISON,

Goglio

has

Lakeland

—

joined

the

Securities

North Stoughton Road.

staff

Inc.,

of

1438

Number 6314

198

Volume

..

The Commercial and Financial Chronicle

.

TAX-EXEMPT BOND MARKET
3.85%

also for a

sub¬

coupon, was

mitted by B. J. Van Ingen & Co.

major

Dominick & Dominick,

are

group

this

of

members

Securities

American

less

for

settled

corporate

bond
moderate proportions,

C.

Corp.. J.

technical

to be

seri¬
the

no

on

pressures

to

2.60%

from

yield

that

balance

in

is $388,000.

group

1990 maturities were

to

The

1986

sold

pre-sale.

There

were

last

tance

Monday

of

impor¬

(11/1),

,

For Women to %

Major Transac tions

s

sale

largest

involved

of

$31,000,000

Oklahoma

Turnpikev. Authority,

Eastern
(2003)

term

Revenue

Turnpike

The account led jointly by

bonds.

Lynch, Pierce, Fenner

Merrill

Study of

&

counsel for

Security^ Mar¬
Granahan,

Kathryn

and

Treasurer

this week

United

the

of

States,

all

the

Woman

& Co. and Leo Oppen-

Co.

purchased

this issue

negotiation

through

Authority.

Turnpike

of

consisted

the

from
This

Series A bonds and $10,000,000 5%
Series

boifds

B

which

fered at 100 and were

of¬

were

of

major

this

of

members

nomic

&

ness

Co. and

Devine &

J.

C.

others.

Wilma Soss

also

vice-

F. .Butler,

of

director

and

eco¬

and

dollar

stocks

common

versus

things

of

investment

finance

to

used

this

of

be

Pick,

with

Currency

from

access

gold will be covered by Dr. Franz

four

expressway

controlled

fully

will

mile

40.2

a

divided

lane,

sale

NASD rules

the

istan.

Report"

the

are

also

for the Qualification

A

Study

Supplemental

research

erly

Chase, senior partner, J. K. Lasser

to

Route

connection

a

five

69,

The

Alester.
Tulsa

miles

Also,
Fenn

Dean

Witter

$9,530,000
ities

Ira

of

&r- Co.,

Rico

Puerto

Co.,

purchased

various

of

&

municipal¬
Public

Im¬

Boyd

is adjunct Professor

and Co., who

of Taxation, New

York University,

will

tax

a' group

Haupt

Tax

David

and

discuss

investment

.

Banco Credito, Phelps,

Co..

&

from

(Texar-

Wednesday,

on

headed by

S.

Mc-

is

southeast

kana-Shreveport).

U.

from

continuum

the

to

with

the

for

analyst

Foundation

the

planning.

to

in

changes

tional

topics

have

Both

will

Representative

1707

climate

mund

for

chartist

Tabell,

president,

Walston

and

Lucien

Hooper, who insists on

clared

000

the identification

$3,240,000

of

Baya-

municipality

$2,350,000

mon,

Aguadilla,

municipality

Carolina,
of

of

$2,000,000

of

municipality

Guaynabo, $840,000 municipal¬

ity

of

Mayaquez.

and

$595,000

municipality of Ponce.
The bonds
at

publicly offered

were

financial analyst),

to 3.60%.

stocks

The

to

Se¬

of

com¬

&

bird

session

will be

updating estate

plan¬

Lecturer: Rene A. Wormser,

Guaynabo, Ma¬

and

Kieljf,

Ponce

not

were

re-

offered.
>

on

Unsold balance at close of busi¬

yesterday

ness

some

was

partner,

on

Shares

the

of

Market's

Status

be

130

market

to

appears

have

exceptionally quiet. The
in

stock

to

appears

With

people.

buying

have
the

into

scare

with

margin

porarily,

at

On the
may

thrown

bond
bank

diminished,
Treasury

new

■

/

.

and

issues

STOCK

V

30,1963.

of

320 per share partial dividend to

least,

very

Also

Women

American

the

of

Business,

the

Nations

morning

Tickets:

A

—

of business November

Men

escorts

for

will

C.

Pittsburgh, October 31, 1963

with
iiiiiiiiiitiiiiiiiiiiiiiHiiiiiiiimiiiiiiiiiiiituiiiitiuium*

CORPORATION;

*

12!/2C per share
•

Payable December 12, 1963

•

Declared October 30, 1933

stock

A

—

1963

lllltllllllllllll

payable
to

-(SPUR

MIIIIIIUUMM

share¬

November

PREFERRED

24,

1963

to

DIVIDEND NOTICE

share¬

10, 1963.

11,1963.

of

record

The
R.

11, 1963.

P. TIBOLT

700,000

ovei

Standard

of

Chairman of the Board

and
250 Stuart

December

Oil

owners

Company

(New Jersey) will share in the

Chief Executive Officer

earnings of the Company by

St., Boston 16, Mass.

October 30, 1963

a

dividend,

Melvin C. Arnold, Secretary
Our stock is

listed

on

the

declared

by

New York Stock Exchange.

Directors

Symbol is EFU.

MANUFACTURING COMPANY

the

Board

October

on

>

1963 and
V7 10.

FLINTKOTE

Diversified Products For Home and Industry

1963

of
3lf

payable December

'

'

■

shareholder*

to

November

record

of

1963

12,

at

the/

"

chairman

rate

THE

non-members.

welcome.

among

per

ses¬

FLINTKOTE COMPANY

||

| quarterly dividends

women.

Common Stock*:

80p per share of
•

/

capital

A

1963 is

:

the 81st consecutive

year in

have been declared as follows:

$.20 per share

of

stock.

NEW YORK 20, N. Y.

Proceeds

go-toward eliminating financial il¬

literacy

$.45

Tenbusch

quarterly dividend
a
share, payable

Preferred Dividend No. 1

session.

$12

of

Thomas Welfer

Mrs. Beatrice Kelekian vice-

the United

dividend

STOCK, payable
1963 to shareholders of
November 12, 1963.
2,

.

Inc.

afternoon

a

COMMON

on

INDUSTRY

AND

record

$ 1.12^/2

December

EATON

Sharehold¬

declared

share

record

John

—

R.

2.2%,

Id,

of

holders

clinic.

$4 Cumulative Preferred Stock:

Splaine & Frederick Add

blue.
men

considerations

knowledge that the total
bond

l/2%) PER CENT or $1.50 per share
PREFERRED STOCK, payable Janu¬
20, 1964 to shareholders of record
January 6, 1964.

of

QUARTERLY DIVIDEND

of

shareholders of record at the close,

is tem¬

brighter side, bond

volume of

of

for

1963

on

December

associated

CUMULATIVE

4'/2%

shareholders of record at the close

periods

the

31,

ONE-HALF

15, 1963.

of record at the close of business

president, and former observer to
the

Ohio

STOCK

holders

29.68750 per share to shareholders

president

Soss,

chairman

sion.

of

declared

and

ary

FUEL

December

partial dividend to

of

answer

has

December
ONE

of

(1

and

representatives

George

HOME

dividend

.

authority

/author
an

Directors

ending

DIVIDEND

The Asso¬

salesmen

of

quarter

which cash dividends

have been

'

paid.

low ground, the

atmosphere

balance these

with the

some

commercial

long-term

market

requirements

municipal

abruptly

groping into
bond

turned
increase

in

will

Board

over-

£

COMMON

Company, payable

1963.

per share

November

and

feature

a

Federation

As we close this short commen¬ ers

tary the state and municipal bond

and

books

foundations.

Wilma'

•

in

self-

4,500

DIVIDENDS

Common and Preferred

the

November 25,

Koch,

Wormser,

Allesandroni
ten

Question
will

$3,300,000.

a

formerly with Morrow

,

1983 of Bayamon,
yaquez

firm

Co., Superior Building.

were

following dividends have been de¬

of business October

NOW.

early

devoted

through

1974

DIVIDEND NOTICES

COMMON STOCK

of

president

Federation

curity Analysts will discuss

senior

maturing

former

and

National

sole

now

WITH ESSENTIAL BASIC PRODUCTS

Common Dividend No. 1 74

Co.,

the

ning.

Bonds

and who is di¬

is

Ave.,

proprietor of the firm.

DIVIDEND NOTICES

rector of research for W. E. Hutton

&

mon

prices to yield from 2.25% out

(chartered

CFA

-

Revenue Code.

partner in Herrin Co., ,/•

a

Second

1117

City,- will discuss the peren¬
O.

to

Record November 21, 1933

through 1983, comprised of $500,-

municipality

plans

Now Proprietor

formerly

ASSOCIATES

The

-

estate' invest¬

SEATTLE, Wash.—John K. Piper/

At present there are

90,000

and

AND

"Are Stocks too High?"

1964

and

real

Internal

•

EASTERN

New

Co.,

1962

r.

GAS

nial topic:

1,

NOTICES

vice-

and

the

prepar-

Ed¬

women.

26,

as

Co.

Wash¬

N." W.,

Building,

organized in Ohio

trust under Sections 856-858

ment

of

Commerce

was

Associ¬

the

Applicants

DIVIDEND

ing

July

St.,

June

qualify

be

York

from

H

with

deal

securities

SERVING

ation,

provement Bonds of 1963, matur¬

serially

from

Cleveland,
on

headquartered at

company,

Union

Shaker

is

Examination,

available

now

St. climate and the social and eco¬
nomic

&

the

Study Outline for the Registered

Wall

the

addi¬
in

found

his

national

a

become

Disbro

Outline

Examination

containing

not

ington, D. C.

session

afternoon

The

devoted

climate-and

Principals,

foif

the

Cleveland.

Examina¬

securities.

than

Bartell

'

junction of Interstate 40 and the
Henryetta East by-pass southeast¬

of

gives> examinations

CLEVELAND,

included.

World
Pak¬

Code

in

Secretary

Uniform

Practice

Waters,

Edith

Dr.

in

now

and

Net

may

-Two With Disbro

regarding supervision

salesmen,

senior

"Pick's

publisher

of

The
1857

registered by the NASD.

shares.

company

principally

how¬

partner"

association

its members.

sales

on

is

NASD

more

the

and

Policy

status.

Principals and becomes

registers

record keep¬

securities
of

partner"

member firms who

ing, net capital, hypothecation of
Statement

The climate for the

other

by
re¬

may

circumstances,

the-counter

on

applicant

activities

regulatory

invest¬

Shaker

partner."

The

of

'

Proceeds

for

"full

ques¬

analysis

the

among

customers'

climate.

be

share.

per

participate in the managerial

tion

Included

will

principal examination

covers

busi¬

and

the economic

the

fails

until he has passed the

in

in

$15

Square properties in

passed

Principals. In

"limited

selling

or

of authority,

business.

certain SEC rules

research, Chase Manhattan
on

in¬

by

such

ciation

William

Bank

not

the

interest

at

is

shares

selling

applicant

an

the

ever,

companies.
new

or

have

they

"limited

Under

knowledge

supervision

or

examination

The

Lecturers in

account include Bache & Co., J. C.

of

understood

be

requiring

ment

event

quest

short-an¬

industrial corporation and

Hotel, Nov. 12.

Bradford & Co., Inc., Alex. Brown

Sons,

Inc.

president

con¬

sample financial statements of an

Hilton

York

test

and

fields

securities
the

tions

New

the

elude:

Other

in

American

until

firm,

a

sole proprietor

managerial

assume

his

type questions dealing

those
must

the

Women

at

objective

policy making,

Shareholders
in

four-hour

new,

of

^

as

test but his capital is needed

dividuals in positions

Fed¬

or

the

Representative

Registered

Examination.

that

by

sponsored

immediately

sold out.

to

The

members.

in

qualified by the NASD

NASD

with

Clinic

vestors

issue EBusiness,
414%

$21,000,000

will not be

the Examination for

swer, essay

eration

&

partner, officer

of¬

pective principals in place of the

sists

In¬

&

heim,

are

functions

day

the

Van Ingen

who

NASD

ment,

>

Candidates for registration

Cleveland,
180,000

proceeds will be used for invest¬

re¬

aid

valuable

a

examination will be given to pros¬

The

Annual

Sixth

be

to

Co.,

beneficial

Aug. 29, 1963, will also

on

found

partners or

principals,
of

Training Guide

&

publicly

Properties

and

Examination

Principals.

will address

Smith, Allen & Co., White, Weld

Co., John Nuvecn & CoB. J.

be

of

the

both

use

studying for the Examination for

by all applicants new

to the securities business
to

NASD

leased
be

centers.

Qualification Examin¬

new

ficers
SEC

test

offering

Supplemental Study Outline.

The

ation for Principals must be taken,

Be Held Nov. 12
Richard H. Paul, chief

the

into

put

should

Representative

1, 1963, at the As¬

69

in general,

kets,
The

Dec.

on

The

the

McDonald

Examination for

the

Study Outline for the Registered

officers

and

take

Principals

announced

has

for principals

sociation's

on

or

Wednesday of the Cur¬

or

week.

rent

sales

no

Friday

Dealers

.

ing to

completely new qualifica¬
examination, designed exclu¬

effect

Investors Clinic

in 1965 to 3.80,% in 1985, the pres¬
ent

of Member Firms

Se¬

a

of member firms will be

.

Reol'fered

curities

of

Association

National

sively

Bradford & Co. and R. D. White &
Co.

The

tion

market.

bond

near-term

For Principals

municipal

there would appear
ous

or

with

39

Shaker Properties
Stock Offered
: /

NASD Announces New Exams

more

and

1963,

and

calendars of

Co.

and Newburger, Loeb &
Other

requirements

Treasury

6

Continued fromi page

(1835)

financing for the

MILWAUKEE,

Wis. —Walter

Richardson

become

with

has

Splaine

&

Cudahy Tower.

affiliated

Frederick,

with

especially

and Raymond J. Plunkett &

voluminous.

With




the

..

Inc.,

He was formerly

remainder of the year will not be

The

A.

Milwaukee

Company

Co.

$1

per

share

jig

54.50 Series A Convertible 2nd Preferred Stock:

$ 1.12'A per share-"*

gj

$2.25 Series B Convertible 2nd Preferred Stock:

$.56'/4 per share

ig
gj

Standard Oil Company
(New Jetsey)

These dividends are payable December 1(», 1963 to stockholders of record at the close of business November 22,1963.

*1 4.1 stjrtftiwciiUve
xttx
dividend

JAMES

E.
»

McCAULEY, Treasurer

&

Esso

Novemlwr 6. 1963

6'%

■*■*

L

Tr

'

"

-•*-

-

+

«

himxsssnsitsm

s»

V

The Commercial and Financial Chronicle

.

.

Thursday, November 7, 1963

.

(1836)

40

COMING

WASHINGTON AND YOU

.EVENTS

behind-the-scenes interpretations

capital

from the nation's

IN INVESTMENT

C.

WASHINGTON, D.

A new

—

Bennett

Senator

Clellan,

has

as

Senator

bill

his

of

bill aimed at curbing unfair com¬

co-sponsors

petition by the Federal

Harry F. Byrd, Democrat of Vir¬

ment with

few

a

days

Republican

assistant

the

by

ago

private enterprise was

the'hooper

in

tossed

Govern¬

leader in the Senate.
The

;

similar

earlier

in

Senator

by

year

Republican of

in

trend

constant

a

competitive

the

system.

ernment

trying

competition

support

rally

to

measure.

The Bennett

is

he

his

for

;; C;V';'V*:

".•'; ■''&

■

■

and

proposal has some

solid

backing, as well as some op¬
position.
The opposition comes
the

from

thfe

two

of

Bureau

the

of

Department

The

proposal by Senator Ben¬

is

nett

not

the

of

Eisenhower

the

during

Administration that the then Sec¬

retary of Commerce Weeks made

particularly

headlines,

some

financial

and

pages

columns, with the sale of the

Federal

Lines

Barge

private

to

enterprise. At the time there was
by

the

is

It

the

sale

for

two

session

of

sales

new

investments

Lines,

Barge

estimate

Government

the

in

made

has

business

by

at least a couple of bihion dollars.

there

However,
stantial

been

has

this

in

offset

the sales of plants by

immediate
these

no

are

large

a

on

sum.

sources

States

Govern¬

United

has

ment

the Depart¬

Congressional

the

say

by

available

figures

totails, but it is

Some

sub¬

a

figure

There

Defense.

ment. of

invested

much

as

in

$150 billion

as

and

businesses

ices that compete

As

Congress

serv¬

with private

en¬

the

Over

example,

the

hearings

had

Government

the

competition.

Likewise

studies

been

have

executive

in

ment

the

the

broad

terminating

or

some

1954

In

area.

launched

a

either

of

purpose

reducing such

ducted

ceived

Operations

been

there
the

numerous

are

the

proposal.

enterprise. At

time it must be conceded

same

that; there

some

are

national

cerning

areas

con¬

security

where

interest

public

abandon

should be conducted

and

activities

by the Gov¬

ernment.

the

tion has

some

beaters for

islation, Senator John L. McClellan,

of

Democrat

committee

Arkansas,

dhairman

tion

and

public

more

in the Bureau of the

Eli

Dr.

the

under

direction

of

or

carry on any

or

a

with

bill

is

designed

national
national

to

estab¬

policy, compatible
security

the

and

"the

will

not

commercial-

to

provide

procured

from

be

can

private enterprise
business

ordinary

through

a

use

own

if such product or service

chan¬

nels," unless it is found advisable
in

the

public interest.

The

limitations

and

branch

involving
any

')■

on

the

going

agencies

for

by

Senator

sponsors

Bennett

would

or

the

ment

establish

thority

do

r

Association

of ;/ Mutual

the

to

the executive branch

not

the

White

that

/

There

are

Government-

many-

favorable

ernment

manufactured

ing, electric

flags,

maps,

Function

Primary

presented

should

first

ment

an

has

it
it

that

than

its

and others

long

of Defense indus¬

sale

for

up

costs

of

of

for

argument

to

our

to

command

control

our

national

private

a

to

firm.

operated

Federal

is

to

avoid

the

dis¬

will

go

nearly all Amer¬

along

with

may not
own

The. major

business

like

Government, private

business would

soon

go

arguments

enterprise
which

it

is

broke.
are

of

right¬

Plaza

Park

Echo

Country

(New York City)

Association

Mutual

of

Savings Banks 44th Annual Meet¬

ing at the Commodore Hotel.
Oct. 12-16, 1964

V:

(Coronado, Beach,

Calif.)

Security

Asso¬

Traders

ciation Annual Convention at the
Del

Coronado Hotel.

'

Attention

.

Brokers and Dealers

TRADING MARKETS
Botany

reflect

to

interpretation
may

Industries
Electronics

Official

Standard

or

Our

New

York

Films

Fruit

Waste

coincide with the "Chronicle's"

views.]

&

SS

King

telephone

number

is

CAnal 6-4592
Forms Iowa Bank Sales
CARROLL,
gens

that

deprived

should

Glen

>//

National

that

It

business

Chase

the

and

highly classified infor¬

from the nation's Capital and

do

••'/>

defense

[This column is intended

Govern¬

more

at

National

the "behind the scene"

been

Louis,

Municipal Dealeite spring

Maxson

In

(Si

;;V-

May 16-24, 1964

contention.

compe¬

1964

rV;/^

•

<

Club.

old argument that if private

business
the

Department has

were

1

plants

closure

icans

have been

business.

substantially

business
is

abandon

private

place

recognized

party
Hotel

to why the Govern¬

as

with

the

year,

mation. Perhaps

Numerous arguments

22-23-24,

Mo.)

out

Nevertheless, the Penta¬

No.

some

area

.^CV-C/'C

Government's

the

other

among

things.

ment

of

Apr.

of

side

still has control of scores of

Government

fertilizer, fur¬

power,

plants

The

lumber, ammunition, cloth¬

cream,

Section April 30,

St. Louis

other plants.

paint, ice

CHRONICLE'S Special Pictorial

pointed

be

Defense

more.

gon

that the Gov¬

showed

ago

years

reason
govern,

private industry for the past year
or

the Shamrock Hilton Hotel.

number of industrial plants

a

trial

including ship¬
yards, and plants operated under
private contract. A study several

to

Texas Group Investment Bankers
Association Annual Convention at

Fur¬

get in business.

50 Department

owned;; facilities

is

be

expected to be sold. More than

are

competition.

should

paramount

during the past

against starting any new business
in

the

sold

absolutely

deprived

channels.

picture it should

legislation

is

House

to

Gov¬

local and state

that

government

On/ the

is expressed

the ground that the

the

Federal

being

are

these

into

by

measure

as

competing

April 8-9-10, 1964 (Houston, Tex.)

is

from

business

Drive

McCoy
name

Iowa—John J. Juer-

conducting

of

Iowa

a

offices

under
Bank

securities
at

the

616

firm

Sales.

LERNER & CO., Inc.
Investment

10 Post Office

Securities

Square, Boston 9, Mass.
Teletype

Telephone
HUbbard

451-3438

617

2-1990

co-

new

no

and

the President

on

Branch

officials

agency

they

his

structure

or

Executive

or

and

well

as

revenues

a

and

Opposition

the

is

money

finance

and

thermore,

of

commencement

business.

new

the

of

executive

.<■

departments and

private

recommended

legislation

would not confer
The

lish

that

declares

Convention

2-3, 1963 (New York City)

National

taxpayers

to

governments

heads; and procedures

agency

tition

Government

.

organization

Nobleman.

E.

start

a

comprehensive staff study of the
situation

policy

used

activities,

competition,

Federal

have;

being

ernment

anti-competi¬

official

policy of the Administration

Federal

the

directed

fully

com¬

enterprise,

high powered drum

more

the

power,

Administra¬

activity

leg¬

of

Commerce

and

niture,

While the Kennedy

policy for its

Because of
in

interest

renewed

Dec.

the hot air!"

and negotiations with department

activities that

should

Government

in favor of private

the

that

made, it is certain

industrial

in¬

relative; to

of

Although considerable progress
has

service

or

expressing

of

plaints- from -private

is unnecessary, because the policy

re¬

has

Secretary

on

this program.

over

Annual

Hollywood Beach Hotel.

meeting at the Commodore Hotel.

com¬

maintained

has

Committee

(on

hearings

for

requests

communications
terest in the

bill,

Committee

Senate

Government

con¬

Bennett's

Senator

on

the

but

blow away all

to

':

t

Savings Banks 17th Mid-Year

Busi¬

petition. The Senate Small
surveillance

the

by

Govern¬

Government-wide

the

for

the

branch

comprehensive
study

made

of

branch

executive

The

been

have

need

" ':v

Association

Supplement Dec. 19.

ditioning stocks—think of how many machines they'll

con¬

have

and

of

at

CHRONICLE'S Special Pictorial

political conventions should boom air con¬

Con¬

have

Study

hearings

1964

1965.

Budget Bulletin 60-2.
No

"The

89th

new

various

years

committees

made

and

Dinner

Bankers

America

at the

in the first

in January,

opens

is contained

terprise.
Under

of

al¬

existing 88th Con¬

the

of

is alive until

gress

officers

C'V

Fla.)

Investment

alive

might still

an

introduced

measure

new

Dec. 1-6, 1963 (Hollywood Beach,

when

Congress,

a measure

in committee.

be

of

Governors'

the University Club.

in Jan¬

opens

in

years

though such

a

will

bill is technically

A

uary.

alive

be

session

second

the

bill

Exchange

Meeting of members

the Senate this

will

it

the

that

Stock

of

election

governors;

Government's Philosophy

sources

that

purpose.

certain

but

year,

worthy of note.

Since

good

not get passed by

Govern¬

ment, because the barge line sale

Congressional

Association

for

ness

made

be

similar

other

that

hope
would

Nov. 20,1963 (New York City)

if they

even

legislative channels, they

on

in busi¬

;

Firms Annual

studies

Barge Line Sale

was

Cricket Club.

the

a

Germantown

means.

any

but

the

and

dinner

annual

at

did not make much headway along

gressional

Department.

The

It

by

new

Similar measures have previously

ducted

was

Philadelphia

Defense,

branches

powerful

Executive

Budget

1963 Philadelphia, Pa.)

dance

served

thing should be done to curb Gov¬

ness

.'

Action This Year

No

to

Senator Bennett insists that some¬

Con¬

ference at the La Salle Hotel.
Nov. 16,

minimize, and in some cases even
abolish

Association

Automation

Investment Traders Association of

ever¬

our

Government

Federal

growing

National

kota, and John G. Tower, Repub¬

been introduced,

Senator Kuchel maintains there

the

First

(Chicago, 111.)

Bankers

lican of Texas..

introduced

measure

the

Wallace F. Bennett,

and

Demo¬
Karl

Carolina;

South

13-15, 1963

Mundt, Republican of South Da¬

provides

Utah.

is

Thurmond,

Strom
of

crat

Nov.

American

aid and strength to a pend¬

more

ing

California

of

Kuchel

H.

>

by Senator Thomas

measure

ginia;

FIELD

not

now

Major Pool

depart¬
any

au¬

Equipment

possess.

public interest, to get the Federal
Government
tive field
cause

as

out

of

much

the

as

of the detriment to the pri¬

vate enterprise system.
some

areas

of

for

necessary

perform

some

security

areas,

ly
«.

is

competi¬

very

course

the

There
where

are

it

is

Government to

manufacturing

in

but this admitted¬

limited.

In, addition

io




Purpose

possible be¬

tions
that

Mc-

Corporation

Bill

I Carl Marks & Co. Inc.

Committee

report

to

Bought—Sold—Quoted

declares
FOREIGN

the principal effect of enact¬

ment of the Bennett bill would

provide

a

be

SECURITIES

20 BROAD STREET

policy declaration of

•

competition

with

private

receipt

and

examination

by

the

Memorandum available

on

request

TELETYPE 212-571-1685

HILL, THOMPSON & CO.,

busi¬

statutory procedure for the

-

.

/\T

VLT?

/

SPECIALISTS

NEW YORK 5, N. Y.

TEL: HANOVER 2-0050

Congress concerning Government

ness;

Chairman

of

The Senate Government Opera¬

70 Wall Street, New York
Tel. WH 4-4540

INC.'

5, N. Y.

Tele. 212 571-1708