Full text of Commercial and Financial Chronicle : October 15, 1959, Vol. 190, No. 5890

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ESTABLISHED

1S39
.'SJ

{THE UNIVERSITY

OFJdlCHIGAN

16 1959
ADMINISTRATION

LIBRARY

Reg. U. 8. Pat. Office

Volume 190

Number 5890

New York 7, N. Y.,

Editorial

;

Thursday, October 15, 1959

Price

Cents

Copy

The Natural Gas
AS WE SEE IT
Muchjo the displeasure of the labor leaders, and
vei^ much to the liking of the companies, the

not

President has invoked the
Taft-Hartley law in an
effort to bring the marathon steel strike to at
least

By Hon. Fred A. Seaton,* Secretary of the Interior
depicting the excellent growth prospects and capital
needs of the natural gas industry, Mr. Seaton wairns this
may be handicapped unless the industry takes the lead in

temporary end. The industry, of course,
expensive it would be to heat the
furnaces only to have to cool them
again in 80
days, and apparently is far from sure that it can

knows how

•

itself, and the

acceptable terms with their employees
within the time limit set
byUhe law that is now
invoked.

•

seeking legislation satisfactory to the F. P. C., the

come

leaders

the

unions

makers

resume

Presidential

cronies

their

often

is.

apparent,

many

superficial

some

initiated—that

may

the

product,

the

New "Deal

efficient

purpose —a

•

another

and

the

useful

purpose

the

Seaton

of every

"Securities in Registration"

«<

''I

><>,

STATE

MUNICIPAL

AND

responsible policy-making official.

dan¬

This is true

Three years ago the Congressional Panel on the Impact
the Peaceful Uses of Atomic Energy forecast that

74,500 trillion B. t. u.'s by that time. Other authoritative
estimates are in substantial agree- Continued on page 20

36.

Lester, Ryons & Co.
623

So. Hope

Street, Los Angeles 17,

WW""'Members

BONDS

State, Municipal

Offices in Claremont,

view

MONTHLY

LETTER

THE FIRST NATIONAL GITY BANK

BOND DI l'MU Mi:NT

Burnham and
MEMSERS NEW

New York 15
15 BROAD
CABLE:

Bonds and Notes

Exchange

Corona del Mar,

BOND

YORK AND AMERICAN

STREET, NEW YORK 5,

•

Dl 4-1400

Inquiries Invited
Calilornia

Bond

Net

Teletype: NY 1-708

Dept.

Active

ESTABLISHED

New

New York Stock Exchange

Banks

the

York

Chase Manhattan

Southern

BANK

Securities

Correspondent—Pershing & Co.

Securities

Brokers

CANADIAN

securities
Block
Commission

Inquiries
Orders

Canadian

Stock

Maintained

and

canadian

1832

Members

Markets

Dealers,

T. L.W ATSON &CO.

BONDS & STOCKS

Invited

Executed

All

Exchanges

FOR

Exchange

CANADIAN

BROAD

STREET

NEW' YORK 4, N. Y.

gout/lUXAt COMPANY

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody

•

PERTH AMBOY

2 BROADWAY
NEW YORK

Grporatioti

Co.
40

NORTH
-

LA SALLE ST.

CHICAGO

PROTECTION

Pohdoott Securities

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

COMMUNITY

DEPARTMENT

Teletype NY 1-2270

Santa Ana, Santa Monica

TELETYPE NY 1-22*2

COBOBNMAM

American

San Diego,

STOCK EXCHANGES

N.Y.

DEPARTMENT

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Company

Distributor

Investment

Stock

Encino, Glendale, Hollywood, Long Beach,

COMPANY

Dealer

York

Public Housing Agency

Members Pacific Coast Exchange

burnham

30 Broad Street

New

Associate Member American Stock

NEW YORK

overall energy consumption in the United States would
reach 75,000 trillion B. t. u.'s by 1975.
Last year Re¬
sources
for the Futufe Incorporated forecast a use of

Section, starting on page

CHEMICAL BANK

DALLAS

and investors in corporate

the

FIRST

can

whether that official be in government or industry.

California

•

useful

dynamic force in the

business.

complete picture of issues now registered with the SEC and poten¬

|
i Wmm,—mm

Underwriter

and however much fun we may poke at the man with a
crystal ball, an attempt to judge where into the future
the present may be leading us is a necessary function

ap¬

NOW IN REGISTRATION—Underwriters, dealers

i IAnovcr 2-3700

TRUST

and

Securities
TELEPHONE:

great

Association is to be congratulated

Housing,

-Municipal

us now.,

so much in making the prediction
forecast, but in forgetting the subjective nature of the
and endowing the forecast with a validity it
does not or may not deserve.
Yet, dangerous or not,

afforded

tial undertakings in our

waste

in the United States, as com¬
During the last ten years the
astounding total of more than
350,000 miles of pipelines lor gathering, transmission,
and distribution of its product. With increased demand
as an incentive, over the same period the proven reserves
of natural gas have risen nearly 50%. • <

process

concern

practical

brightly lit at

were

Such

appalling to

The danger lies not

should

reason

The Association's

research

time not long ago when the

flares.

economy, and as a convenience or necessity
lives of so many individual Americans.

gerous

SECURITIES

Stale an«1

countless

What of the Future?

securities

Public

which

Now, what is in store for the future?
Making predictions, as you well know,

gas

would be

:■

pipe¬

consumers

resource

Nation's oil fields

The American Gas

for this has been

the

by burning

natural

the total energy consumed

point to the uninitiated in the arguments of the
unions is probably the claim
Continued on page 30

U. S. Government,

from

American

pared to 27% in 1958.
industry has added an

and

are

material

for the part played in making natural
gas serve a

Fred

The most telling

raw

far cry from

above

night

plications of research, as well as
with
vigorous promotion, accounts
in no small part for the things which it has been able
to achieve. In 1920 natural gas contributed only 4% of

of these more recent arguments in behalf
higher wages and other benefits for the steel
workers. They are not new, of course, but they
once again
repeat old, old fallacies which have
nutriment

skies

growth-producing factors,

still

think

with

much

reasons

Another is that

To these

the; un¬
not be amiss to analyze

kindred notions of late years.

and

'tz-rr-T.

development

lines.

some

found

ideal

This is

few short years the gas indus¬

One of the

reiterated—and

plausibility

that

interests

try has grown from infant to gigantic
size, to the point where it now ranks
among the Nation's largest industries^

be added.

with

The American Gas Associa¬

therefore,

common

problems.

strike,, and
being uttered in its defense
ought not to be necessary to go into the
again. Yet certain of the arguments of
are

of the United States.

the fallacies

union 'leaders

the

tion includes producers, transporters, and distributors of
one
of the major natural resources.
;

about the basic issues involved in this

matter

tanker.

is
developing new and improved uses for gas.
Through petrochemistry, natural gas has also been found

protection against competition.

Secretary of the Interior,

sources

So much has been said both here and elsewhere

that it

Secretary pleads for the

primary responsibilityis the conservation and development of the natural re¬

according
to Mr. Reuther, the loudspeaker
for,'organized
labor, or one of them.

about

and

number of valuable products are obtained.

whatever

and

industry is now supplementing the traditional
pipeline method of transportation by reducing natural
gas to a liquid state so that it can be moved by tank car

industry
pas¬

consumer.

the government for

profess to

price they
must pay—and hence the action taken
by the
President is about the equivalent of strike break¬
ing—for the purpose, of course, of lending a Hand
to

underground storage.

The

and cautions competitors in the energy field not to look to

believe that they have now .so starved steel users
! that severe pressure is being exerted upon the
steel

The

for

of the Administration's proposal for conserving helium,

sage

"""

The

To help meet the problem created by seasonal fluctua¬
tions in-demand, there have been developed
techniques

After

Exchange Place, New York 5, N. Y.

T«■'

♦««.

wv 1 .T02-3

WHitehall 4-8161

MUNICIPAL BONO DEPARTMENT

Bank

America

N. T. & 3. A.
an

Francisco

Los

Angeles

She Commercial and Financial Chronicle
2

(1578)

Thursday, October 15, 1959

The Security I Like

Brokers, Dealers only

For Banks*

in the investment and advisory

(This is under

You

can

sure

Experience
Nationwide Wire System

Primary Markets in more
than 400 OTC Issues

New York Hanseatic
Established
Associate

American

1920

Member

York 5

Teletype NY 1-40

WOrth 4-2300

possi¬

public usually
is very late in
d i scovering

tunes

dices

die

All

not

eghany's
the

Albert

Deuble

however,
improved
has,

somewhat

Bids

decades.

opinion is based

the following considerations:

Mr.

being
any

too
misfor¬

Zeckendorf

because

Issues)

Webb

Knapp qualifies Alleghany as
inflation hedge.

3-7830

with

tie-up

Its

(2)

is reached.

High Voltage Engineering Corporation

Its

(4)

Trading Interest In

about

share this year.
big

Diversified

block

Services

of Investors
Alle¬

gives

the

Bassett Furniture Industries

Life Insurance Co. of Va.

stocks—
best" is

tion

Corpora¬

actually doing at the present
It is a mixture of holding

time?

company

STRADER and COMPANY, Inc.

and investment trust. Its

investments

total

million.

LYNCHBURG, VA.
TWX LY 77

-5-2527—

Private

Wire

York

New

City

common a

exceed

$150

outstanding

and

Debts

preferred
LD 39

im¬

all others." So

EXPANDING ECONOMY?

tors

give

Alleghany

certain amount of lever¬

357,000

Diversified

shares of Inves¬
Services, one of

the

biggest and most successful
fund management organizations in
the

Canada, the world's second larg¬
est

has

nation,

lation

constantly expanding,

are

and

Thomson

Neshitt,
pany,

untapped

vast

Its industry and popu¬

resources.

Inc., through

Com¬

network of

—I

offices in Canada, the U. S.. and

Europe, is in constant touch with
all types

of Canadian investment

possibilities

—

and,

government

municipal issues, corporate bonds
and stocks.

Neshitt,
pany

stitutional
in

and

Thomson

Com¬

is always ready to help in¬

their

and will

nish any

corporate

Canadian
be

investors

transactions,

equally glad to fur¬

information about Cana¬

dian investment.

NESBITT, THOMSON
AND COMPANY, INC.
25 BROAD ST. 140 FEDERAL ST.
NEW YORK 4

BOSTON 10

are

working

but

H. V. E. C.

know

lot

cause

new

appears

thirteenth

million

will

decisive

of $1.50

amount

high

new

will

not

clear

last

cash

Call

information
write

Yamaichi

Securities Company
of New York,
Affiliate

Inc.

Yamaichi Securities Co., Ltd.

Tokyo, Japan
Investment Bankers

Brokers

111 Broadway,

N. Y. 6 COrtlandt 7-5680

remark¬
prof¬

year

$179,000, in 1958 it was $330,000, in this year ;it may be near

cents

retained earnings

with

have

been

million

—

type

for

stood

equipment which is strange to
people—particle accelerators.

most

Particle accelerators

are

machines

paid since

Currently about $6.00

share.

per

ALBERT J. CAPLAN & CO.
Members:

Boston

500,000

Pfiila.-Balto. Stock Exchange
&

Pitts.

Stock Exchanges

(Associates)

1516

LOCUST

ST., phila. 2, pa.

time.

some

small amount op¬

the

good

re¬

turer

H. V.
outstanding

next year.

JAPAN

IN
Write

for

our

Stock

Monthly

our other reports
give you a pretty clear
picture of the Japanese
economy as a whole.

Digest, and
that
'

the

Free

World

de. Graaff
of

founders

and

still is

the

most

the

was

the

company

director and

active

sources

one

Nomura Securities Co., Ltd.
61 Broadway, New
Telephone:
This

new

not

orders

BOwling
offer

for any

York 6, N. Y.
Green

9-0187

solicitation

for

particular securities

and
fundamental
re¬
search. The machine invented by

concepts
him

has

proved

research type of

the outstanding
accelerator. With

the constant world-wide growth of
research
nature,

the

fulfilled

the

basic structure of

Van

but

Over-the-Counter

Quotation Services
for 46 Years

National Quotation Bureau
Incorporated

financial

dividend

cents

various types and

sizes and these

and the only manufac¬

R. J. Van

the

Opportunities Unlimited

company

world's

the

specialist

1942.

30, 390,000 shares were out¬

Dr.

Dividends

chain.
t

Class "A" stock

aggressive small-loan

Van de Graaff type of accelerator.

specializes in

We suggest
of

Return

6\LOln Annual

Com¬

mortgage.

have

held

annually—and

possibilities late
E;

2■'
/O

Expansion has been fi¬

$700,000.

gard to the new types of accelera¬
tors
which
may
open, up
big

the

EARN

growth trend has accelerated—npt
in 1955 was $106,000, in 1956 it

should
score
another new high in sales
and earnings in 1960 without re¬

see

H. V. E. C.

every

cently .and

velop ment.
Behind

New business has been

be¬

has had

times

been

that

current

per

it is the hundred thousand dollar range. growth following the, perfection
position Up to date these relatively stand¬ of^the new type of accelerators,
of this large Eastern road is more ardized machines have been used High Voltage seems to me to have
possibilities
of
capital
favorable than many
believed mainly for research. H. V. E. C. unusual
possible. This railroad has paid its has made almost 250 machines of gains linked with very little longhas

STOCKS
For

Since the

$1.75.

net

in its career • and
with
two
exceptions
(1950 and
1952) earning more each year than
the one before. In recent years the
its

standing plus
tioned^

possibilities of
dynamic de¬

branch offices

our

JAPANESE

types
be the
considerable

these

advanced

de Graaff accel¬
and
British
Governments
hurl erators have found themselves in
yardstick for
demand. A remarkable
at energies which
are growing
stocks of this type is applied), or particles
number of universities and gov¬
measured in tens of millions and
an increase in the portfolio value
even
billions
of' electron
volts. ernment agencies have bought the
of about $45 million. There is talk
These
special purpose "atom huge $1 million tandems devel¬
of a split in Investors and an in¬
smashers" are not built by any oped a few years ago and there
crease
in dividend payments.
is vivid interest in the even huger
one
company but
are assembled
Alleghany is holding as its sec¬
three and four stage tandems an¬
from
parts made by numerous
ond biggest investment almost one
nounced last year. Reseach is big
companies. H. V. E. C. is equipped
million
shares
(actually 330,000
business these days and while the
to make certain components but if
shares are held in joint ventures
thinks of
its
biggest
it gets the nod for the new $150 company
which, of course, reduces the free
future as lying in the field of com¬
million linear accelerator which
holdings accordingly) of the New
mercial application, the research
York
Central Railroad.
Central may be built at Stanford Univer¬
sity, Calif., its contribution will be application is likely to prove much
showed lately some remarkable
bigger than was hoped for a few
of the order of $5 mill-ion only.
and not fully explainable activity
years ago.
The sort of equipment made by
at advancing prices. A few days
Because
of the solid
business
before the steel strike began Cen¬ H. V. E. C. is much smaller — its
tral directors indicated they hoped largest machines sell for $3 mil¬ developed thus far and the possi¬
to declare a dividend.
This hope lion and the typical machine is in bility of a somewhat explosive
usual

Direct wires to

this

business.

the

well and like

NY 1-1557

La. - Birmingham, Ala
Mobile,Ala.

greatly enlarge the scope of
Several companies

could

June

country, selling around $255
which take an electron or an ion
a share, or a total value of about
and
subject it to electrical and
$91 million, represents Alleghany's
magnetic forces so that the par¬
biggest single investment.
It is
ticle
gains speed and finally
expected that Investors Diversi¬
smashes against a target at very
fied will earn this year about $11
a
share which would give each high velocities. The huge acceler¬
ators built by the U. S., Russian
share a value of almost $400 (if
the

HAnover 2-0700

New Orleans,

targets

with accelerated particles, and

mon

rapid pace,

INTERESTED IN CANADA'S

of hitting

cost

authorized

Walter K. Gutman
outstanding
warrants possible dyn a m i c s
i s
are
probably only a very longterm factor or fly in the ointment. steady and solid growth at a fairly
About

the

drastically

could

which

veloped
reduce

near

The

age.

types of accelerators are being de¬

nanced

that
ghany an important interest in
one
of the most profitable busi¬ I like High
nesses discovered
in the last few Voltage Engi¬
years, namely, the management of neering Cor¬
poration best
mutual funds.
What is the Alleghany

Commonwealth Natural Gas

represent more than half the busi¬
ness done to date in the U. S. New

was

sex

I don't say

American Furniture

Exchange

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

dividends

"forsaking

security

hard

York Stock Exchange

Members American Stock

The company

City
Members: New York Stock Exchange
and American Stock Exchange

Alleghany is holding a large In this dynamic age a
stocky analyst is bound to feel
This stock was very active lately appeal of a great many
at higher prices.
It might earn saying which one I "like
a

Steiner, Rouse & Co.
Members New

able record of earning good

Research Analyst
Shields & Company, New York

block of New York Central

$2.50

;

tant effect.'

(3)

Teletype No. NY 1-2762

New

Co.,

Analyst,
Shields &
York City. (Page 2)

company's equipment is all - big
green lights; a few red ones must ticket
stuff, the final December
be expected before the destination
billings can have quite an impor¬

WALTER K. GUTMAN

$12% a share, compared with an
underlying asset value of about
$22-$23 a share.

Odd Lots

WHitehall

cents a

apply, the stock could move very
fast and very soon if the condi¬
tions are right.
But the road to
profits is not paved only with

(1) Alleghany Corporation com¬
mon
is selling at present around

Exchange Place, New York 5
Phone:

to 41

■

BONDS
(Active and Inactive

best

Our favorable
upon

Dealers Ass'n

the stock has
price level in

that

two

than

& CO. INC.
Security

the

reached

Members

„

equal

stock,

Alleghany has only 4.8 million

last few years

GROSSMAN

sorpe

NI«eteen-fifty-nine will be the
full year of operation
common shares outstanding.
Even for the
company and perhaps this
considering the brakes which the will be an unusually lucky num¬
preferreds and the warrants might ber. At any rate sales of $7 to $7.5

easily.

status

Bought—Sold-—Quoted

by a
Alleghany
will receive for
its
loans of $24.7 million title to a margin. After another year of de¬
valuable Denver real estate de¬ veloping and proving out investors
velopment. The dealings with ought to have a clear idea as to
Webb & Knapp are involved and whether a big business is going to
have
been
changed
lately
but develop for this new industry.
should work out very profitably.

preju¬

SAN FRANCISCO

S. WEINBERG,

(Page 2)

most

And

past

CHICAGO

Cities

1957,
ferred

ganization without
heavily involved in

The

uations.

Louisiana Securities

(in December, High Voltage Engineering Corp.—
Walter
K.
Gutman,
Research
Reading second pre¬

valuation of $2.8 million (actual
Corporation is not a value around $9 million).
popular stock!
For a number of
Through a stock option in Webb
years this stock has had no great
& Knapp (one million shares at
following. But popularity does not
$2lfe, exercisable after five years)
always mean
Alleghany is also participating in
desirability or
the fortunes of this enormous or¬

•

to Principal

Wires

Alleghany

•

BOSTON

PHILADELPHIA

offer to sell,

Deu¬

- ---

ble,
President, Yorkville Ex¬
change Co., Inc., New York City.

share, was distributed). Alleghany
carries also about 20,000 shares of
Missouri
Pacific "B" at a total

neglected or
forgotten
sit¬

Exchange

Stock

120 Broadway, New

Private

Inc.

Alleghany Corporation

profit

Alabama &

share in June, 1957

President, Yorkville Exchange Co.,
New York City
Members of N. A. S; D.

bilities.

Corporation

as an

Alleghany Corp.—Albert H.

offer to buy, any security referred to herein.)

ALBERT H. DEUBLE

Speed

favoring a particular security.

be construed

circumstance to

solicitation of an

Participants and

Their Selections

field from all sections of the country

participate and give their reasons for

Call "HANSEAT1C"!

This Week's

Forum

which, each week, a different group of experts

A continuous forum in

If it's Over-the-Counter

Best

term risk.

Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
BAN

FRANCISCO

Volume

190

Number 5890

The Commercial and Financial Chronicle

(1579)

Current Business -Trends

INDEX

and Trust

analysis of two different

economic

indicators

whereas

turns

change

;

from

banker

the

National

expansion

holds

that

not

early

contraction.

downturn

still be

October

ness

would

general

1956

thought

downturn

start

1957, perhaps
mid-year.
In early

such

turn

ness

had

been

month

would

tinue

least

spring,
the

1958,

Land

but'

good

James

fall

chance

that

uptrend would be in progress
by
the end of 1958. On
Sept. 25, 1958,
I predicted that 1959
would be a
of

year

vigorous

defense

downward.

expenditures

Instead

•

sponded reasonably well with the

made

events,

mistake

except

tinue

until

the fall

trying

ture

once

certainties

the

do not

know

steel

when

industry.

come

the

the
cent
are

are

business

These

economic

team

and

their

and

batting averages,

durable

and

changes

inventories.
The

principal

economy

that

re¬

not

base

Such

rate

the

See

and

specialized

two

Party

Victory"

Nashville

Newark

•

Arundel

19
46

Manpower Inc.
Hawaiian

;

Corp.

Vertol Aircraft

Telephone

Midwest Instrument

Wilfred

May

___

•

;

Our Reporter's Report

Singer, Bean

29
7,i

•.

MACKIE,

HA 2-9000
Public

Utility

inc.

Railroad

Securities

•

nearly

$57

Securities

Now

Registration

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 1-4844

Salesman's

billion.

the

Corner.

The

Market

The
The

____

and

—

State of Trade and Industry

You—By Wallace Streete—

—

—____—

Entron*

to
I

.-___

_____

Tax-Exempt Bond Market—Donald D. Mackey

Extrudo Films*

Telectro Industry

be quite that high, alon

page

Washington

and

You

Twice

___

—

Weekly

T._-_

Reg.

COMPANY,

DANA

35 Park Place.

Reentered

Office

Patent

Publishers

Subscriptions
Possessions,

President

Glens Falls
Worcester

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Territories

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and

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15, 1959

news, and ad¬
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plete statistical issue —market quotation
records, corporation news, bank clearings,
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States,

and

per

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Febru¬

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matter

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GEORGE J. MORRISSEY, Editor

"WILLIAM

second-class

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

New York ?, N. Y.

2-9570

View

Company

CHRONICLE

FINANCIAL

/ /

Standard Gilsonite
Sea

by William B. Dana

1959

The COMMERCIAL and

ctflpkc
0 i ulf l\3

St. Louis

Security I Like Best-J

from

San Francisco

Securities

would

Direct Wires

Chicago
Cleveland
Dallas
Los Angeles
Philadelphia

Prospective Security Offerings

mostly

period

that

Securities

billion-

TELETYPE NY

Schenectady

Bargeron

Governments/

on
.

Exchange

Chicago

Activity

■

Observations—A.

vertising

Boston

A_»_

of the News—Carlisle

Our Reporter

"CLAUDE D.

TELEPHONE HAnover 2-4300

._■_

1868

ST., NEW YORK

Recommendations

News About Banks and Bankers--

REctor

Albany

Investment

the

A similar

Spencer Trask <Sl Co.
Stock

J.F.ReilIy&Co.,Inc.

NSTA. Notes

BROAD

Bookshelf

Mutual Funds

1955,

Continued

York

.Cover

Stocks

business

rate

years..

however,

peak will

Founded

(Editorial)_J

From Washington Ahead

•

WILLIAM

commonwealth

Einzig: "Economic Consequences of Conservative

not quite as
which occurred

$40.6

ddcccddcn

New

was

present

mllllrllllllu

Members

kratter corp.

Regular Features

Insurance

Published

have

Apparent, Say

expenditures

annual

half

the

are

For many years we

associated

Economy

out '

will
further

bring capital expenditures
a

Dealer-Broker

events,
while a

such expenditures,

the

doubt,
of

first

rise

business

listed

the

Indications of Current Business

billion

the

rise

purchases

elements

the

in the first

t:.—

are

Help

Coming Events in the Investment Field

the/
beginning of the last preceding
period of expansion in capital ex¬
penditures. That previous expan¬
sion produced altogether a 40%

(principally

produce
level ' of

upturn, however,
vigorous as that

automobiles and household equip¬

ment),

Not

Effect Now Becoming

Business Man's

of 1958.
In the first half of 1959,
they bounced back considerably,
reaching a $43.9 billion annual
rate in the second quarter;
This

consumer

.goods

alaska oil

Swings

Nelson

Strike's

Bank

third quarter of 1957 to a $40.6 bil¬
lion annual rate in the last quarter ;

to speak,
listed below in Table I. They
defense, spending,Vprivate

construction,

itself

Table

$48.3

capital expenditures,
residential
construction, non-defense publicof

borne
of

during 1953, coming "down from

poor

players

key

endeavoring to look ahead de¬
spite the temporary uncertainties,
I shall start, as I did in both 1956
and 1957, with an analysis of the
factors in the economy which in
my opinion make the difference
good

basic atomics
18

oil & refining

dropped sharply in late 1957 and

business.

are

course

tailspin.

between

Housing

the

they will
before they cause

general economy to go into

Canham

de¬

Private capital expenditures are
next of the key factors listed'

occasions

end

Purchasing Agents

Capital Expenditures

these troubles

will be over, but I assume that

._■/

Blessing in Disguise—Roger W. Babson

Steel

activity.

by the temporary un¬
arising
out
of
the

troubles

corp.

Hoyt

Trading Transactions Studied by NYSE__

The

spending,
sustaining influence,

changes

fu¬

they

defense

not

the

actual

strong

con¬

confronted

the

then

think¬

1958.

into

peer

more,

at the outset

changed.

economizing

but

ments

actual
that

permachem

transport

prospects could be changed either
way
by
international ■ develop¬

outline, although not in
my forecasts have corre¬

ing that the recession might

WHitehall 4-6551

—Walter C.

have

broad

STREET, NEW YORK

Telephone:

Uninflated Natural Gas Equities

Sales Forecast—Fred

Violent

spent, as the 1958 and 1959
mid-year figures in the first column in
1957, that it hit bottom in April, Table 1 show. Present prospects 3
1958, and that; except for the in-, are that defense expenditures in
the period ahead will be held at
terrupting effects of
the
steel
strike, it has been expanding vig¬ approximately the higher level
These
orously since the spring of 1958. they have now attained.

course

WALL

cided to spend more; and more we

Hindsight enables us to know
that business in
general started to
turn down
shortly after

detail,

Obsolete Securities Dept.
99

________

next day the first Russian
Sputnik appeared in the sky and/
our
country's entire mood about

Cobleigh

—Erwin

very

and

recovery

expansion.

—Carl
1960

early October, 1957,

two-would

new

with

and

making to reduce defense expend¬
itures and indicated that I
thought
it likely that changes in such out¬
lays during the ensuing year or

possibly

until

you

obsoletes!

your

Western Canada Is the Future
Major Natural Gas Source
.

I referred to the determined ef¬
forts the Administration had been

and

quite

with

factors

small margin, to be the most
important in terms of total dollars

the

of Payments

•The World, National Outlook and
the Role of Businessmen

involved.

surprise
for

con¬

until

con¬

Among ihe key factors in Table
1, defense spending continues, by

the

—

Enhancing the Liquidity of Mortgage Loans—Deane C. Davis 10

omy.

two

those

pur¬

as
likely to produce 1 basic
changes of direction in the econ¬

downtre

add

—Ira U.

and,

for

dollars than the factors "Table 1, they are less

than

Outlook

•_

—Roy L. Reierson___

non¬

not

that

and

these

Overall

Land

About Certain

for

WONDERFUL?

Recent World Improvements Have Vet to
Be Fully Grasped
—Per Jacobsson

services

—-

AREN'T WE

Cover

spending

While

variable

in progress for
a

lot

listed

down¬

-j

poses other than defense and

struction.

the

mid-1930, the

and

governmental

busi¬

Re-

viewed,, the

expenditures

goods

/----

and

cash

early

Seaton

Trends

Accepting the Discipline of the Balance

greater than in 1939.

durable

October 1957 I

Economic

sign of

after

occur

consumer

busi¬

expressed the
b e1ie f that

any

Autoptically

should

that

soon

Bureau

reveal

overall business volume will

examination

eight lead indicators does

—James

his

Fred

Business

Current

opposite conclusions regarding the outlook. Mr. Land finds that his
key factors presage a downturn between mid-1960 and mid-1961

Am COM* ANY

Natural Gas Industry: Today and Tomorrow

—Hon.

Company

sets

Page

wmmmm

The

By James N. Land.* Senior Vice-President, Mellon National Bank

LlCHTfnSTEWS

& &

Articles and News

And the Overall Outlook

-ittu-ces

for

and

dverti3ements

York

tundj.

Philadelphia

Washington, D. C.
Denver

Salt Lake

Albuquerque
San Francisco

City

Los Angeles

Accepting the Discipline of
The Balance of Payments

was

returned

visit

extended

from

financial
widespread loss of con-

of any

leaders abroad finds little evidence

and

business

rate ceiling
bond issues,
since
Treasury to rely

the

Trade and

for some time to come; and concludes arguments
against general increase in price of gold have the better case. For¬

however,

observers,

believe greatest risk

several, and

not

he summarizes a

sure

chronic

interest

the

Europe,
are

INDEX

how

Work stoppages in steel and other

easy

economic

rates.

financially
personal

balance

abroad

for

international

the

Foreign

after

years

centered

led

the

dollar

world.

the

American

rest

beginning to be
emphasis

gold

holdings

evenly distributed,

been

"inade¬

possible

quacy" of the United States gold
reserve,
the "weakness" of the
dollar, and the prospect for a
change in the dollar price of gold.
•

evoke

kind

this

Questions

persistent

foreign, financial
centers than in the United States.
in

interest

However, this should not be sur¬
prising; developments concerning
a key international currency such
as
the
dollar
naturally
attract
worldwide attention,

the

more so

central
banks
and
others are large holders of dollar
balances. In the European finan¬
as

foreign

cial

markets,

story

any

avidly,

and the dollar is followed

and

gold

this

particularly the case
in London, reflecting the presence
there

dealers
tance

Africa

South

area

and

that

the

that

ments

the

seem

United

has

careful

and

American

States.

over

uneasy

this

and

the

some

the

have

developments

keeping

seem

pres¬

uneasiness

the

over

then

there

spending

centered

cess

programs

The
in

•

cies.
the

financial

term.

United

suc¬

cerned

some

•

Net

over

the

this

billion,

seasonal

than

1958.

rise

first three

than 20%

marketings

says

farm

income

Nationwide
Bank

•

with

Bank

declines

the Bank.

year-end

boost

may

substantially higher this
in farm income in

increase

further

1960

from

this

INCOME

FOUNDATION

FUND

all

week

will

show

increase

compared

Preliminary figures compiled by the "Chronicle"
the country,

cities of

United

the

States

for

which

possible to obtain

weekly clearings will be 16.8% above those of the corresponding
week

last

Our

year.

preliminary totals stand at $24,244,391,010

Continued

INVESTORS,

Liberty Avenue
4

INVESTMENT

INCOME
INCOME

PLANS

INC.

Pittsburgh 22, Pa.

•

Exclusive Distributor

FOUNDATION

offers to Dealers the best

for selling
OUR

POINT

DEALER

We would like to

program
A

Contractual Plan.

who believes,
•

We believe that dealers need

tractual

Financing For Your Men

We Will

Classroom

Actual "In the Field"

Monthly Commissions Statements with Breakdown for Each

Stock

plans.

their "Plans"
•

Training In Mutual Funds and Contractual Plans Presentations
to

Training in Prospecting and Sales Presentations

at
A

Salesman

Options Available

our

6 POINT DEALER PROGRAM

the MUTUAL FUND CONVENTION
A.

find V

T "*

REPRESENTATIVE

as we

believe

con¬

many

dealers will need
i

Help Hire Men For Your Organization

WHOLESALE

PLANS

do, in contractuals.

PROGRAM

has these vital considerations:

Further Details

FUND, INCORPORATED

FOUNDATION FUND INVESTMENT

Federated Investors, Inc.,

We believe

help in setting
Department.
we are

show the Dealer

volume

can

best prepared

just how much
in

contractual

plans. We know he can do a tre¬
mendous job with more of the right
kind of help.
We

will be
or

Above 1958 Week

Clearings 12.8%

based upon telegraphic advices from the chief cities of

719

INCORPORATED

year,

decline, in contrast with

indicate that for the week ended Saturday, Oct. 10, clearings for

Pittsburgh 22, Pa.

FUND,

1959

• 1

t-'v

FOUNDATION

other businesses.

clearings this

year ago.

Exclusive Distributor
INCOME

crop

quarters was at an annual
below last year, but a more

last, reflecting the sharp

FEDERATED

INC.

the

probable rise for most

con¬

page

total

The large supply

expanded

farmer's capital outlays probably will

must be

that

indicate

above 1958.

Farm capital expenditures have been
year

persistent loss of

Continued

spending

developments

income closer to the 1958 total.

the long-

become

indicate
continue

will

outlays

primarily for feed, will tend to support continued

income in

rate of $11.5

point, it is argued, the
will

capital

estimated at 15%

result

farm

than

States

1958, early in the

Other surveys

production, hog prices have
dropped a third from the year-earlier level. Prices of cattle still
exceed year-ago figures, however, as the increased production has
shown up largely in increased numbers on farms and ranches.
;

pressure

over

agricultural

used

corn,

lead

agen-

movement

business

States

Thus, it is said,

Con¬

than in

expected.

was

record year

balance of payments

large

Administration's

countries

expected to persist

later,,

INVESTORS,

Liberty Avenue

was

the

forestalling

other

increases

by United
corporations and

before

ment

budget

up;

industry

further

rise

in September indicates capital

higher

expansion of production of cattle and hogs,

pect of increasing foreign invest¬

inflation¬

the

shaping

for

productivity abroad. In. addition,"there
is the need for .continuing large
government programs of foreign
grants and credits and the pros¬

prices

that

Current

in
foreign
markets
will
probably continue
to
worsen,
it is said, as rising i
capital investment and expanding

be 9%

production may equal last year's record output, with corn heading

devalue the dollar.
competitive position of

markets

upward

mid-August,

for

will

American

dropped 350,000, or 1%, between mid-June
a seasonally adjusted
basis, but this decline
was less than
the drop for steel and other closely-related metals
and transportation industries taken separately.
Thus, the Bank
says, strike-induced declines have been partially offset by con¬
tinued expansion in the nonindustrial sector, with employment in
trade, service and local government rising to new highs.

is to say,

The

trends

inflationary

implications

FEDERATED
719

that

Employment

eventually
find
it
necessary to raise the gold price
above its present $35 an ounce—

the

alive. A year ago

sures

gress.

the

for

States

particular

course

outlook

the

and

by those who believe the United

still

the

unfavorable

through 1960.

for

balance ol payments seems to
be the mainstay of the case made

are

pay¬

1959 will

appreciable

that

the

over

and

country.

concern

watch

year,

Against

been

scene,

that this

and

come

A Government survey

spending in

continue to drain the United

This

next
to

offi¬

Government

outlook

the

time.

some

United

adverse

rate of advance

has been obscured by strike-related develop¬

now

....

Devaluation Prospects: For and

raise

appear

the

continue

the

and

Whatever over-all pattern was emerg¬

Furthermore, the Bank states, encouraging signs of a more
lasting nature are present.
There is evidence that plant and
equipment expenditures are rising and may continue to do so for

States gold stock.

partly re¬
stored, financial observers abroad
are ° nonetheless
keeping a close

ary

the

within

years

the

dollar

deficit

way

will

position

somewhat

considered

balance

slowed

ments.
However, one thing is certain—a resurgence of activity
in industries most affected by materials shortages will occur when
the steel deadlock ends.
'
%.'■'-'"y

any

contrary, while confidence in

the

States

have

activity

ing at that time

runs

and have

exports

the

may

time

some

minority.
This, however, does not mean
that foreign observers have re¬
laxed their scrutiny of economic,
financial
and
political develop¬

any

price
five

traded

by members of Congress

bearing

ments

convinced

are

Thus,

that

States

the

number

States

United

gold

three
in

large

gold
the
Statements by

likely

will

while

soared

declined.

hold,

those who

even

apprehension

gold producer,

London' exchange.
United

time.

„

slackening growth in output were apparent before
down in mid-July, the Bank points out, as con¬

public outlays moderated.

advancing for some
Simultaneously,
imports

have

shut

steel

struction

been

change in the relationship of the
dollar
to
gold to be imminent,

the

and

1957-58 recession

hold

the

commodity prices as
living costs failed' to ease

recovery

observers

industry

producers also were
glass industries
:

copper

few reports of secondary

were

Signs of

o n

There

payments.

in the

States

Later

business

take

stocks

the

mining

cials

market

interest 6f the bullion
topic, the impor¬

this

sterling
and

international

in gold, the

result.

informed

lew

the

keener and much

are

Most domestic

quarter.

some

layoffs due to shortages
of steel up to mid-September, but since then such reports have
occurred with increasing frequency.
•
A !

;

third

There

again

gold losses
declined and
these expectations
gradually diminished. At present,
began

with

Lately,

United

risk

well

the

f 1

recorded successive drops from the June high of
further decline is indicated for September.
Steel,important, was not the only strike-bound industry

firms in the meat packing and
down for varying periods.

were

pricing itself out of
the world market, the more so as

huge Federal deficit,
outflow of gold all
of questioning and
Many
people
then

that

the

idled, and

industrial

might find it necessary to devalue

shortage"
the

the

has

rash

contended

"dol¬

the

lar

large

uncertainty.

States

United
and

and

gold

prospect of

huge con¬

centration

the

that American

the

ently
reached
a
peak
in
the
Spring of 1958, when the business
recession in the United States, the

discussion

the

talk

Concern over the dollar appar¬

World War II,

the

Fears

few

first

with

though most

problem in this country primarily,
of course, because of the effects
on
the United States balance of

perts in the United States.

and

more.

concerned

;

abroad

and

.155,
.

payments;
that
the

here,

circles

July and August, comments the Bank, the index of indus¬

trial production

States would have similar

Financial

V;:' "

practice of
rates
at
arti¬

consequences over

casionally emanate from certain
commentators or self-styled ex¬

discussion
decade

United

the
•

adoption of such practices by the

price -gold price are widely publicized,
the press usually plays up
and the situation of the United and
States dollar, two closely related prominently the somber forecasts
topics, have been under recurrent of a dollar devaluation that oc¬
gold

the

for

outlook

The

during

tions."

the

convinced

are

industries reversed the nation's
third quarter, says the Federal
Chicago in its monthly review, "Business Condi¬

advance

Reserve Bank of

from

aware

the

they

to sustain confidence in our currency.

program

PRODUCTION

BUSINESS FAILURES
COMMODITY PRICE

pegging interest
ficially low levels contributes to
inflationary trends and to pres¬

that we realistically

key currencies, and

only,

the

for

low

observation

that the dollar is one of

changed conditions, such as the fact

view

Western

pressures

Dr. Reierson asks

and

erudite

alive, and
in loss of confidence in the dollar itself comes

from Americans themselves.

preference

credit

uneasy about

to be still

reported

are

keeping inflationary

developments

Industry

AUTO

financing, with all the
inflationary implications of such
practice, and because it implies

% .will continue

described

RETAIL TRADE

eign

OUTPUT,

CARLOAD1NGS

short-term

predicts our adverse balance of payments

! fide nee in the U. S. dollar;

PRODUCTION

ELECTRIC

FOOD PRICE INDEX

re¬

interest

the

move

Treasury
forces

Banker

leadership

The State of

the^ unwillingness

Congressional

Bankers

•

allaying

cause

Economist,

L. Reierson, Vice-President and Chief
Trust Company, New York City

Hy J)r. Roy

STEEL

undoubtedly a factor
foreign fears for the
dollar in the recent past.;
However, many Europeans now
are again disturbed, this time be¬
spree

glad to talk with

•

Our

6 Point

outlined

Dealer Program is
opposite page. If you
can help yourself and

the

feel that you
the Dealer with

our
program—we
would like to talk with you.
•

We will

talk in terms of

salary,

draw, expenses and percentage. We
want

wholesale,
for this

experienced, retail and
Contractual-Plans-Man

opportunity.

at the MUTUAL FUND CONVENTION
call JOHN F. DONAHUE in Pittsburgh—ATlantic 1-3093
you

page

Volume

190

Number 5890

The Commercial and Financial Chronicle

(1581)

and

in the

tion.
•

WILFRED

nip ula-

People's

Troubles

MAY

—;

Toronto Bond Traders Elect New Officers"

—

•

"Other

BY A.

bsenee

^'-v

TORONTO, CANADA.

Money"—

Bond

with the Mutual

1960

Funds

„

—

At the Annual

Traders' Association

season

elected.

was

Meeting of the Toronto
the Board of Governors for the 1959-

L. M.

Wightman, of Isard Robertson & Co.

OUR POLICEMAN'S

WASHINGTON—In
of

the

Securities

the early days
and Exchange

Commission,

Justice Douglas, then
its
Chairman, told President
Roosevelt that

"hardening of

all

with

tling after a
ten-year life.
This

earlier

was

Wilfred

May

the

dent

Silver

Anniversary, marking an
important milestone in Federal
securities
regulation, constitutes
an
opportune time to take stock.

Actually how well has this agency
mandate

"its

Congressional

the public?"
In the phase of

the

Commission

activity

sheer

clearly

justifies

Justice Douglas' present endorse¬
ment
of
the
"still in
business"

sign.
In fact, its activities have
lately become accelerated. Of 15,930 registration statements
filed
under

the

1933

Act

years,

one-third were filed
during the past six years. And in
dollar volume, nearly one-half oc¬
5,561

or over

curred in this latest period.

Sim¬

the

1934 Act, as
annual regis¬
tration revocation proceedings by
the Commission have increased by
ilarly,

under

compared with 1950

countries,

sion

Aiding

sought

was

clearer

stated

was

return

understanding
truth

ancient
manage

sales

the

further

occupied

with

Results in Practice

and

sales

the

members

the

Board

Honorary Chairman:

J. R.

the

McCloskey

Board, announced the

follows:

J. S. Proctor, Imperial Bank of Canada.

Honorary Vice Chairmen: L. L. Bell, James Richardson & Sons;
Howes, Harris & Partners, Ltd.

D. L.

prac¬

J. G. Carnegie, Wisener, Mackellar & Co. Ltd.

Treasurer:

J. R.

literature

violation

the

who

money

considered

the

Commission

enjoyed

other

and

the

code

the

law.

And, as
it has
cooperation

reports,

fullest

•

Thomson
and H.

McCloskey, The Royal Bank

of Canada.

Co. Ltd.; H.
Irving, Dominion Securities Corp. Ltd.,
Boyer, Equitable Securities Canada Ltd.

Officio: J. A. Lascelles, Dominion Securities
Corp. Ltd.;
Edwood, Harris & Partners Ltd.

D. R.

business conduct.

G. Campbell, Burns Bros. & Denton Limited.

Governors: W. T. Copeland, Deacon
Findlay Coyne Ltd.; T. T.
Malone, Wood, Gundy & Company Ltd.; W. L. Garrett, Nesbitt,

industry in enforcing this

sional

investor's

confidence"

ability to

"restoration
based

thus

of
his

evaluate the facts

plus

presumption of government guar¬
anty,
might
be
somewhat
illfounded. Thus it might lead to the
public's over-confidence, particu¬
larly at
times
of
bull market
Excitement.
which

has

And

the

extent

contributed

the speculative excesses
almost

double

their

many

level,

have,

major

pre-1929
extensive use of

the

high

cost

have

borrowing

equally

low

yield

considerably
from the

confidence which the Com¬

Money

But

outright-held

carry

now we

alongside

increased

the

return

higher-grade bonds.
can

also be lost honestly,

This announcement appears as

matter

has

ter

reap¬

they

case

sell

interest

the fees to be derived from future

services.

The

SEC formerly took
another selling sphere,
is impossible to reach by the position that it objected to a
regulation;
namely
the
verbal transfer of control for a profit.
representations of the competing Now some more crucial questions

which

salesman to his prospect.

For

ex¬

ample, it is impossible to devise
statute

that

proclivity
that
any

would

prevent
the
salesman's
present

eager-beaver

assure

his

client

get his money back
time through the redemption
can

have

been

added

non-voting

stock

fees derived from

visory

services

another

tivities

area

see

of the fund

ac¬

example of the

sale

investment ad¬

and

from

under¬

writing.
The
Back

Trafficking in Management
Contracts

by the
to the

public.
New pressures center around the

privilege.

elimination

caused

Directions

abuse

in recent

1929

regulations

undeniably,

New

peared in

with the stock averages

markets,

Nevertheless,

"confidence"

vaunted

affirmatively

Abuse

data

upon the worth of
that they might be

drawbacks. A basic
example is the restoration of in¬

by offsetting

other

Chairman

Secretary:

it
was
further
provide disclosure

financial

low-yielding stocks.

regulatory results, on the
other hand, are quite varied with
some
reforms being accompanied

study

G. Campbell

Ltd., the newly elected

Vice Chairman:

sales

frenetic.

The

literature

being employed. Following
study, the Commission issued
a Statement
of Policy setting forth
various types of advertising and

securi¬
ties so
realis¬
tically evaluated by investors. It
would seem that the non-profes^

L. M. Wightman

been

tices

The primary aim of

was

all

ad¬

has

legislation,

stated,
of

law

this

trustees."

are

Commission's

of this

Commission

the

those

that

other peoples'

...

without

techniques. Leading members of
the industry cooperated with the

what

that

1940

elimination of the specific abuses
in
the
highly competitive sales

practical operation the insurance abuses, as the
companies'
prospective
variable credit to finance
speculative oper¬
annuity contracts.Supervision over
ations, the widespread pyramiding
this broad field was recently gained
and much other legerdemain by
by the Commission by Supreme the
utility holding companies, and
Court decision.
Thus we see that
manipulation on the Exchanges
far from becoming atrophied, the
via pools and otherwise. The Com¬
Commission's
activity
is
quite mission
points to the elimination

vestor

capitalizations, col¬

the

ministration

cases

working out plans for putting into

The

perpe¬

1920's, centered in manipu¬

Company Act of
dissenting vote.

referred to the'- stock-bond
yield ratios, and to the
Justice Department for prosecu¬
plethora of "dubious" new stock
tion by 150%.
offerings,
hardly
makes
it
an
And right now, after years of unusual
blessing.
expanding activities, the Commis¬
Our Federal
and

which

by the "investment trusts"

lation of their

240%, injunction actions by almost high price earnings ratios, and low
100%,

one

were

abuses

government

the

Roosevelt

protect the investor bearing

and

other

the

stopped. The

trated

urging the passage of the
covering legislation, the Securities
Act of 1933, which he called the
"Truth in Securities" law, Presi¬

re¬

out

than

great

banquet celebrating the Agency's
25th birthday.
In any event, this

carried

other

in the

securities, or its
having, passed on the prospectus'
accuracy, is a criminal offense

by Mr.
Douglas this
at

distorted.

supervision

direction

in which it has been
con¬

tribution to the economy. But such
confidence
frequently
becomes

approval

lated

week

primary

representation of the Commission's

prognosis,
along with a
vigorous
change of his
mind

its

a security.
particularly applies to new
offerings. And this misconception
occurs despite the requirement for
prominent
placement, • in
bold
type, on the prospectus of the

scut¬

its

BIRTHDAY

cites

This

war¬

rant

25th

mission

anteeing the worth of

other

agencies,

lusive dealings and sales activities.
agency too often is unwarrantcdly"
These abuses were curtailed with
considered by the public as guar¬
the
passage
of the
Investment

the arteries"

would,

-major obstacle to effective
overall regulation habitually arises
from malpractice to be employed

Legal
1956

stock

aging the mutual funds.

The sale

interest to

purchasers at
excess

its

small group of

interest

the proxy

More fully and dramatically, the
pending Guterma and Birrell cases

demonstrate

limitations

Honesty Be

The

United

Legislated?

States

of the

require the addition
British-type code of volun¬

tary ethics and self-restraint.
head

for

that

goal

over

THE

LELAND

net

asset

value.

(Special to The Financial Chronicle)

ATLANTA, Ga. — Charles C.
Gibson, Harry H. Peterson and
Virgil S. Steele, Jr. have become
affiliated

with

First

Southern

Corporation,
70
Fairlie
W., Atlanta, Ga.

(formerly

White Adds to Staff
(Special to The Financial Chronicle)

ST.

Mo.—-William Zullig
White & Company,
Mississippi Valley Building, mem¬
is

LOUIS,

now

bers

with

the

Midwest

Stock

change.

In the lat¬

DIVISION

division of American Machine & Foundry Company)

Correspondents inprincipal cities

throughout the United States and Canada
The
to

undersigned served
the

consultant

buyer in this transaction.

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

Dominick
25 BROAD STREET

NEW YORK

Telephone Bowling Green 9-6400

4, N. Y.

Dominick

Members New York, American & Toronto Stock
14 WALL STREET

Street,

acquired

Dayton, Ohio

the

With First Southern

But

of record only

ELECTRIC MOTOR

Let

years!!

HOWELL ELECTRIC MOTORS COMPANY
has

im¬

supervision

machinery.

the

posed by the statutory pattern on
the Commission's effectiveness.

price $4 million in

the
higher
Courts
denied
the
employment
action with the Court of Appeals
contract, particularly in this field
holding there was no breach of
where the manager has a trustee
trust as defined by the statute—
obligation, must be recognized as
demonstrating the vulnerability of
being out of order.
this,
and
any
other statute to
The
bandying-about
of
their
circumvention.
services by the existing managers
This legal result once more in¬
is being accomplished in the fol¬
dicates the difficulty in devising
lowing alternate ways.
(1)
By an
airtight statute, and also de¬
selling their stock, in whole or in
pendence
on
which
particular
part, to a small group which in a
court tries a case. For in a similar
short time gains effective control.
action
tried
in
the
New
York
Or (2) through the sale of non¬
Courts soon- after, the SEC won a
voting stock, or non-controlling
conviction, following its charge
stock, to the public. Control is
that the attempted sale of the man¬
retained
by the original man¬
agers over the public's stock via
of

fraudulent acts.

experience
proceeded against officers, direc¬ with regulation over its first
quar¬
tors, and controlling persons of ter century shows that
honesty
a
management
company
which cannot be legislated; and that our
was acting as sponsor, investment
legal sanctions and administrative

the

offerings and sale
companies man¬

would probably not have
been obtained, but for the accom¬
paniment of some otherwise

Can

the

was

viction

Commission

adviser, and principal underwriter
of
an
open-end company with
$215
million
of
net
assets.
It
sought to nullify the sale of their

for

a
grossly inflated
"using the key to the
company's treasury." But the con¬

Status

the

unforeseeable shortcomings of the
statute, and the dependence on the
thinking of the respective court.
Unexpectedly a boom has arisen

public

agement

price

Exchanges

NEW YORK

Ex¬

The Commercial and Financial Chronicle

(1582)

inventory,

Tax-Exempt Bond Market

The

tainable
by, those investors
tent
that market imbalance
whose incomes are taxable,
is rarely lengthy when yields
With heavy Federal financ- are
relatively high.
ing and refinancing a seemThe dollar-quoted State and
ingly series of crises for some
Municipal revenue bond is¬
time ahead, it appears likely sues are
variously up about
that the general market level one half
point during the past
will maintain tax
exempt week. The Illinois Toll Road
yields at prices that will con- issues were
particularly ac¬
tinue to attract the broad detive, with gains of about two
mand that has obtained for
points. The Indiana Toll Road
most of 1959. These yields
issue

Municipal bonds has contintied to be active during the
past week. New issue volume
has been relatively moderate
and bidding for these issues
has been a g g r e s s i v e and
highly competitive. Consequently, new issue pricing has
been
high as against comparable secondary offerings,
A

w e

market

balanced

persists, however, with most seem

enough, at
moderate the deborrowers to the
that supply will not
the general broad deAs has been pointed
these columns pre-

generous

being very well present, to
takeri by all types of investors mands of
issues

new

for

secondary mar- extent
showing offerings of mod- outrun
est
proportions (less than mand.
$200 million bonds according out in
and with the

ket

The

viously, during 1959 with

late

prices averaging higher than

have
25%
than

at an

million Wayne
Michigan issue sold

Low

The

Municipal Market Flexible

Supply Factor

lack

Continued offerings of attractively priced Treasury issues should pose no real prob-

supply continues as the major factor in
the municipal market trend,
The general bond marke t,
dominated by the government
marthas

been

technically

desirable

tion for months

condi-

and has to

Current Market

ket stress the sources oi SUP"

Representative Serial Issues

•'

walk,

3.25%

3.12%

3.40%

3.25%

3.90%

3.75%

3.70%.

3.60%

Guaranty Trust
group.
The bonds

3.55%

3.40%

fered

basis.
On
Wednesday
the
Halsey, Stuart & Company
group purchased $15,991,000

14, 1959

—

3.80%

3.70%

3.90%

3.75%

3.85%

3.75%

Index —3.50%

Call

Net Changes

Yield to

Price

from Prev. Week

Maturity
7*

100

107i/2

+i/2

4.62%

104%

+f/2

4.490/.

103i/2

<*)

4.30%

4-1-1962

l03i/2

(*)

392%

5-1-1966

103

+1/,

4 ifi%

1-1-1965

103%

71%

+1%

5.59%

W-"78

104'4

Wft

+1%

5.47%

1-1-1962

103

4-1

103

1011/,

10-1-1962

103

75V2

7-1-1960

104

330%

1-1-1964

108

92V?

3^0%
New York

Power

10-1-1969

831%

+1/4

103V2

8iy4

4-1/?

4 43%

+1/4

104

101%

4-1

Authority
7-1-1958

103l/2

Authority

1-1-1995
Power

1-1-1963

103

94
•

(*)
.

4Aj/o
'

A'S

4 35%

n.JO/o
4 65%

n.oo^
3 71%

3J1%

-fl/2

3 93%

w-1970
;

3.05%

7-1-2004

103

7"1'1960

1031/2

103
103

iVk

™

3 '4%

6 '"59

821/2

4«

7'1'"63

"•

Virginia' Toll

103,4

+1,/8

440%

7-1-1959

104

821A

4-35.

101

Revenue

3%JV,1"!994 ;
L*) Unchanged.

scale

of
The

New

reof¬

are

3.55%

Hampshire

bidding
Wednesday
is

large

any

loans for

10:00 a.m.
Noon

1961-1979

3:00 p.m.

Noon
1:30 p.m.

18,000,000

______

October 16 (Friday)
Everett School District No.

Snohomish

1,600,000

County, Wash.---.-—

(Monday)

October 19

2,000,000

1960-1979

1,490,000

1962-1981

20.000,000

1979

Noon

1,890,000

1960-1979

2:00

1,460,000

1960-1988

7:30 p.m,

D., Mich.__

1,250,000

1960-1988

8:00 p.m.

—

3,400,000

1962-1979

3:00

102,145,000

1960-1999

Noon

7,500,000

1964-1983

10:00 a:m.

3,080,000

1960-1989

Georgia
Fla.—-———

County,

October 20
Boardman Local

S. D.,

Carbondale, 111.
Hamilton

Local

—

Common

Hawaii

Honolulu;

__ —

Authorities---

Housing

October 21
California

(Tuesday)

Ohio

p.m.

(Wednesday)

of)^_

(State

p.m.

Hempstead Union Free School
District

No.

14, N, Y

1:00

p.m.

State Property and

Kentucky

1,650,000

1961-1980

1:00 p.m.

Reading School District, Pa.

1,300,000

1961-1989

8:00 p.m.

Salt

5,500,000

1961-1971

3:30

Building Commission, Ky

Lake

—

City S. D., Utah

p.m.

October 22

(Thursday)

Consumers

Public Pwr. Dist:, Neb.

2,250,000

1963-1972

Consumers

Public Pwr. Dist., Neb.

21,050,000

1972-1992

10:00

2,700,000

1961-1980

Noon

2,100,000

1960-1988

11:00 a.m.

4,255,000

1960-1989

2:00 p.m.

3,064,000

1960-1984.

1:00 p.m.

Ohio

Dayton,
Lake

Worth,

Macomb

Fla.____

and

Bear Creek

Oakland

Plaquemine,

a.m.

Counties,

Drainage, Dist., Mich.

Calif.

Oakland,

10:00 a.m.

La.

1,000,000

—_—_

October 27 (Tuesday)
3,350,000
3,000,000

Unified

Glendale

Los Angeles

District,
Rowan, N.

C.—_

— —

Warren Consol. School

Dist., Mich.

9:00 a.m.

1961-1977

11:00 a.m.

2,450,000

County Flood Control
Calif.

1961-1983

2,125,000

D., Calif

1960-1979
1960-1979

21,150,000

Cuyahoga Falls City S. Dist., Ohio

Noon
9:00 a.m.

1961-1984

8:00 p.m,

issue is scaled to
October 28

rare name

Tuesday and
of
this
week,,
news
concerning
negotiated
type

Baltimore

County,

Hamilton,

Ohio

(Wednesday)
20,000,000

Louis

1962-1986

Noon

2,100,000

County, Mo.___

—___!_

25,000,000

State Auth.

Pennsylvania General

1961-1985

2,500,000

Hampton, Virginia

St.

____

1,300,000

.__

Noon

1961^1979

11:00 a.m.

1960-1982

8:00 p.m.

_——-

near

term

flotation.

October
Camden

Florida

(Polk

School

(Thursday)

District, N. J._

County),

3,300,000

Commission

Development

Utica Common

With

9,500,000

11:00 a.m.

1962-1988

8:00 p.m.

1,000,000

1960-1979

9:00 a.m.

1,900,000

1960-1988

8:00 p.m.

7,500,000

Dist., Mich.

1961-1989

2,886,000

Fla._______

School

Gallagher-Roach

November

(Special to The Financial Chronicle)

Lewis

Gallagher
16

Ohio —Helen
connected

now
-

Roach

and

with

Company,

East Broad Street.

Cerritos Junior College Dist., Cal.
Oak

1961-1979

10:00 a.m.

(Tuesday)

Park

(City) Royal Oak and
Southfield (Twps.) S. D., Mich.

Port of

511%

1 '

Authority

Pw^w^rania T^mpike Authority
Rt^mwd-Peler^urg TuVnpike

City, N. Y

3:00 p.m,

1960-1964
1960-1974

Seattle, Wash

'
5-1-1962

43^% 10-1-1998
Jersey Turnpike
3%% 7-1-1988

COLUMBUS,

3 93%

4-1V*

104

Authority

New

New York

Turnpike Authority
Port

York

Company

usually in demand by high
grade bond investors.
Even as the municipal mar¬
ket
moves
higher, particu¬
larly as reflected in new issue

4 83%

+1/0

1-1-1958

5-1-1994

Massachusetts

+U/4

Turnpike Authority

Massachusetts

Tuesday, NorConnecticut sold $2,on

3.40% yield. This

417%

Bridge Authority

1-1-1989

of¬

7-1-1994

New

1960-1989

1,800,000

____—_——-

(*)
»

1-1-1994
Maine

fering. Also

initial

447%

7-1-1967

...

received

there

Highway
-

well

Offering

104%

scaled to

bonds.

Price

whole)

syndicate. The bonds,
a 3.75%
basis, were

pany

State

....

Minneapolis, Minn.

2,930,000

York

New

665,000 bonds to the Morgan,

3%% 0 1978-1980
ZVa%
19801
3V2%
1980*r
314%
1979
314%
1977
3%%
1977

QUOTES AND RELATED INFORMATION

Highway
3y2% 1-1-1994
Jacksonville, F!a. Exp.
4y4% 7-1-1992
Kansas Turnpike Authority
3%% 10-1-1994
Kentucky Turnpike Authority
3.40%

Com¬

1977-1980

Indiana Toll

Mackinac

Trust

3%%

7-1-1962

Bankers

3V8%

11-1-1974

1-1-1*95
Highway

the

3.25%

1-1-1978

Toll

City, Oklahoma, sold
$3,497,000 bonds on Tuesday

3.35%

____

Turnpike Authority
3V4%
4-1-1995
Grant Co., Wash. PUD No. 2
3%% 11-1-2005

3%%

homa

3.40%

—_

Port
7-1-1995

Dist.,

Okla¬

3.50%

Reg.

Illinois

4.75%

3.45%

...

1-1-1999

Water

reoffered

3.45%

Florida

—

scale

been

3.60%

(as

Toll

has

3.55%

Chicago-0'Hare Airport

Illinois

this week

1978-1980
1978-1979
1974-1975
1978-1979

7-1-2013

.4%

$3,700,000

1980-1982

First Callable Date

4%%

The

account.

Garden

(Prices and yields are approximate)

Chicago

the

Asked

—

Issue-

October 15 (Thursday)
Chili

distributed; about
bonds remain in

million

_______

No.

well

3.75%

(N. Y., N. Y.)

October

PUD

man,

Chicago and Gold¬
Sachs & Company, has

Bid

____

Wash.

3.90%

Co.,

Bank

JLos Angeles, Calif..

by Northern Trust
Company, First National

Maturity

Auth., Gtd._

(State)...
Pennsylvania (State)
'Vermont (State)

Chelan

group

1978-1980

New York

DOLLAR BOND

the

Rate

•

New Jersey Highway

Baltimore, Md
Cincinnati, Ohio
New Orleans; La.__
Chicago, 111.
Boston, Mass.

3V2%
3%%
3%
3%
3%%

'/
______

New Housing Auth.

week

City, Michigan S/D
issue
bought by the group
headed by Braun, Bosworth -&
lem to the tax exempt market
Company, Barcus, Kindred &
largely because of its inherent Company and the First of
far less
fiexibility. ln periods of mar- Michigan Corporation early

large degree been accountable piy quite rapidly reduce new
for the extreme bargains ob- issue
offerings. As regards

California (State)
Connecticut (State)

last

been

average'yield of 3.50%.;in the like 1958 period.'

opened.

Financing

headed

high grade State and at present,
investors
Municipal Bond Index re- purchased, more than
fleets the firm, steady market more tax exempt bonds

bids will be

$25

County,

Blue List). "The Com-

icle's"

available, includes name of bor¬
maturity scale, and hour at which

Montreal, Quebec

Recent

for which specific sale dates have been set.

or more

amount of issue,

rower,

Collier

cases.

Thursday, October 15, 1959

Information, where

general im¬ Atlanta,

provement in most

mercial and Financial Chron-

to the

$1,000,000

gained over one point.
Monthly revenue statements

continue to show

following tabulations we list the bond issues of

In the

vestors

problems sit back and buy the
distress items; all to the ex¬

and

State

for

market

decide to become in¬
a
period. In the
meantime, investors with tax

prices

LARGER ISSUES SCHEDULED FOR SALE

dealers, generally, either cut

MACKEY

DONALD

9"M959

105

•+»
+V2

«4*

November

With Foster & Marshall
(Special to The Financial Chronicle)

PORTLAND,
McDonald
with

has

Foster

Ore.—Collyer
become

Port

Arthur,

Texas

(Wednesday)
1963-1989

2,950,000

11:00 a.m.

affiliated

Marshall,

__»_

November 9 (Monday)

South¬

west Sixth Avenue at Oak Street.

St.

3.83%

Enfield, Conn
Joseph

2,000,000

School District, Mo.__

Santa Barbara High S. D.,

J. C. Bradford Adds

Calif.__

2,800,000

1965-1980

1,000,000

1960-1984

4:00

(Special to The Financial Chronicle)

November

ATLANTA,
Trent has been

Ga.

—■.

Joseph

added to

the staff

Poughkeepsie,

(Wednesday)
2,296,000

of J. C. Bradford &

3.87/0

—xVz

3.76%

Co., WilliamOliver Building. Mr. Trent was
previously with Goodbody & Coin St. Petersburg, Fla.

December

Columbus, Ohio

(Tuesday)
10,010,GOO

1962-1986

p.m.

10:00 a.m.

Noon

(1583)

rovements

count

can

change relations

over

ingly wide field

stable

means

the

Managing

Director

of the

arid Chairman

increas¬
that less

Executive Board, International Monetary Fund, Washington, D.C.

from

boom

getting

out

under

Art.

change

XIV, and rebuts view

hand;

that

high

interest

rates

arrest

Noting Fund's principal purpose of stable ex¬

progress.

convertibility

now

being

realized

reduced

the transitional

and

the general

objectives of Art I.

He comments on the

confronting the Fund created by U. S. A.'s changed world-relationship
the

and

slackening of inflationary

contribute r to

He also discusses:

pressures.

world' trade

Inadvisability of "tied" financial aid; unsound methods of restoring

tate

balance

not

over-strained

need to coordinate sources

economy;

tion

providing financial aid; what should be done to solve underdeveloped
countries'

and the fallacy that credit inflation is

problems;

•*

The- enlargement

resources,
which
last year in New

effective

two

for economic

the

proposed

was

Delhi,

weeks

Fund's

became

ago

when

other

ing

the

75%

had consented
the

in¬
in

creases

their
As

quotas.
result of

further

glad to

the

but

fulfill

one

move

set out in Article I
Articles
of
Agreement,

from

continued

expand

the

sion

to external convertibility.

Confidence

the

they

once
their
larCGlv in

^drn^
concerned. The Fund has a role
}2_

83.56%

of to¬

convertibility,

external

introduction

The

Per Jacobsson

the

Union.

that
seen

now

and it is likely that for this rea- VIII. When the Fund was set up-.,
son
there will be resistance
to it was felt that a transitional petheir removal.
They thus become riod would be needed before tho
a

problem of commercial policy,
are no longer to be consida balance of payments prob-

ered

rangements"
were

total

resources

from

are

being

the equivalent of

billion to about $15 bil¬
Until very recently the Fund's

about $9
lion.

liquidity

effective

the relation

judged

was

generally

between

of gold and dollars
possible demands upon
its resources. After the improve¬
ments in the monetary field in
the last few years, which were
holdings

its

and

the

signally expressed by the con¬

certed

external conver¬

move

tibility by so many countries at
the end of last year, the effective

but

overcome;
in

effective
fiscal

tively few exceptions,

income

national

and the more

application

which weighed
'many economies in the post¬
years
has
gradually been
worked off, so that by now the

war

authorities

This announcement is

However,

the purpose of the in¬

the

not been

recent
stabil¬
ity may even reduce demands on
the Fund in the period immedi¬
ately ahead. The purpose of the

liquidity; indeed,
the
strengthening of monetary

increase was
bers

rather to give mem¬

confidence that in

the Fund

propitious, for a con¬
certed move to convertibility, the
decisive steps themselves needed,

$50,000,000

cumstances

Philadelphia Electric Company

have

risen

:
Interest

The convertibility
in

exchange
means

the

tion in costs.

was

sible to avoid

pos¬

disruption of the

York City

Accrued Interest

two.

has re¬

Copies of the Prospectus may
such of the

be obtained in any State from only

undersigned as may legally offer these

compliance with the

Bonds in

securities laws of such State. - —

remember that this
same

time

reduc¬

An interesting con¬

given to me by a
banker.
He told me that

loss

duced

in profits

volume

MORGAN STANLEY &

IiREXEL & CO.

CO.

from

the re¬

BL YTH & CO.,

INC.

GLORE, FORGAN & CO.

er—and
sense,

much

the

HARRIMAN RIPLEY & CO.
Incorporated

of exchange trans¬

have an effective second line actions, resulting from a shift of
reserves—particularly in cases exchange dealings to London, had
of emergency when," in a rela¬ been more than compensated by
reduced,
costs
of
handling
tively short period, there may be the
substantial calls upon the Fund. other foreign business
(transfer
Let me
here recall that in an of funds, cashing of coupons, etc.),
made possible by the steady re¬
emergency as acute as the Suez
crisis, use of the Fund's resources duction of paper work involved
together with appropriate national in exchange controls. In a broad¬
made it

1 in Philadelphia or in New

recently

Swiss
any

year or
move

example of such a reduction,

crete

payable rfpril 1 and October

Price 101.09% and

greater freedom from
regulations, and it is

important

reason

these countries for a

sulted

Due October 1, 1989

Dated October 1, 1959

that neither
prices nor living costs
appreciably in most of

simple

wholesale

Series Due 1989

Refunding Mortgage Bonds, 5%

First and

KIDDER,

PEABODY

measures,

to buy any of these

countries

many

they

financial

Continued on page 3&

neither an offer to sell nor a solicitation of an offer
The offer is made only by the Prospectus.

firm grip on the mone¬
tary position.
Though the time
was undoubtedly ripe, and the cir¬

and

Fund's quotas has
primarily to provide ad¬
ditional resources for current op¬
erations in the short run. There
has been no evidence of any im¬
mediate shortage of international
in

tion to obtain the approval of tho

might

Bonds.

crease

Under thirl

member countries

free from any obliga-

have got a

the Fund has been as always, imagination'and cour¬
strengthened. While age, and also a readiness to co¬
operate.
The move can now be
up to the end of 1957 no less than
92%
of all drawings from the seen to have been fully justified
Fund were made in U. S. dollars, by the quite remarkable rise in
about
one
quarter of all sub¬ the monetary reserves of most of
the countries concerned. In West¬
sequent drawings have been made
ern
Europe, monetary confidence
in other currencies. With the es¬
tablishment of external conver¬ has been increasing conspicuously,
not only as regards the external
tibility we may expect this trend
toward a wider use of currencies value of the currencies, reflected
to be strengthened. Indeed, in one in the firmness of the exchange
recent
substantial drawing one quotations, but also in regard to
the internal value, for the good
half of the .amount was drawn in

ai#J French francs.

many

liquidity

substantially

sterling

restrictions.

have been

flexible

liquidity

guarded against, the result

Article XIV

to eliminate their existing ex-

change

^rticie>

obtainable

in convertible currencies,

under

designed to give these mem-

credit policies, the ex¬

and

cessive

wholly

very

important—

fact that business

MERRILL LYNCH, PIERCE,
Incorporated

SMITH, BARNEY & CO.

WOOD, STRUTHERS &
October 15, 1959.

FRERES & CO.

&CO,

FENNER & SMITH

af-

ber countries time to overcome*
their balance of payments difficulties before they were required

„

gravely

under the Fund Agreement. To
that end the "transitional ar-

They were, therefore, not able to

countries

member

fected by the war would be abish¬
to implement the full obligations

and

Fund's

pattern of trade,

are

be"

to say a few
another importan?;

leadg
about

This
words

Being

have question, namely, the problem
is arising in connection with tho
clearly move of countries from the status
protectionist devices; 0f Article XIV to that of Article*

the

they

Finally
Realized

Purpose

Fund's

which

restrictions,

tory

modified

...

increased

*un Agreement,

lem.
The general trend of commercial
policy has certainly
a
which I have apply the full value of surpluses
monetary significance; the maintal quotas. The Executive Board just referred, may be regarded as within the Union to meet defi¬
tenance of discrimination, moreconsummation
of
the 'first cits with other areas; this was of
has extended the date of consent the
for increases in individual quotas stage of a process extending over particular importance in relation over, undoubtedly acts as a strong
to July 31, 1960 to permit count- *nany years for strengthening the to the dollar area, and, indeed, irritant, liable to bedevil commercial relations; it may provoke a
tries which for constitutional or economic and financial position of was one of the reasons given for
other reasons had not given their countries all over the world. The the
retention
of
discrimination resurgence of protectionist sen..
,
.
consent before the 15th of Sep¬ monetary.
disturbances
which against dollar goods.
But now timent, especially when the busiwere brought about by the Second
tember 1959 to do so.
that, in Europe and elsewhere, ness trend turns downwards; and
As a result of these steps, the World War could not be easily exchange receipts are, with rela¬
if .such
possibilities
are
not
through increases

figure

whShlr

matters whether or not tiio

eurrenci^ th^exU- ^^^Tirtirtl^xlv X
their importers of the ihue/I|™em°efntArtlCle XIV °f th°

payments. The essence of the probof the remaining discrimina-

surplus

inside

And even

lem

balance of payments

acquired

currencies

likely to impair their balance

part of the net payments due
to them; consequently, they did
not receive in gold or convertible
currencies the full value of what¬
ever

such a Ending the Contracting

right to buy in the cheapest market
can
hardly be said to be

for

Internal and External Monetary

now

countries,

other

orp

to the relaxation of trade restric¬

1957.

convertible

ments, and by giving an impetus

trade and pro¬

world

1956,

duction

an¬

reached

should

for

The European Payments

purposes

proportion

has

gold and convertible
steadily increasing.

are

market

developments,
they will tend to be reinforced
the changes in public policy

which

payments without restoring to
destructive of national

that

nounce

able

thus

feature of that decade.

of international prosperity."1In tions. The participating countries
spite of the crisis in the autumnj extended credits to each other

-con¬

then,

measures

sents received
since

monetary

import

Paries have in turn applied their
procedures in dealing with the*
quantitative restrictions m a m-

out by

undoubtedly

are

porary
increase
in imports,* it
might well be asked whether such
aggravated by an increase could not be sustained
uncertainty which by countries whose reserves in

not really borne

are

forget that the virtual stagna¬
of world trade in the 1930's

These

maintained by a member countrywere not justified on balance of
payments grounds In view of

the, expansion of tially reduced the degree of dis' But even suppose
and, indeed, facili¬ crimination.
Let us that there would be a certain tern-

kind

Union,
of : its
for eight and a half years up to
namely, to provide member coun¬ the end of 1958, made a most use¬
tries "with opportunity to correct
ful
contribution to
progress
in
maladjustments in their balance Europe by assuring prompt pay¬

of total quotas
to

resort

was

without hav¬

structure

Contracting Parties to the G.A.T.T.
The Fund has already had occa—
sion to conclude that restrictions

the

any intensifica¬
restrictions or of
physical controls. The Fund

tion

countries hav¬
over

needed

the-experience of those European
countries
which
have
substan-

was

exchange

which

reduction

foreign investments.

was

growth.

ing

costs—a

competitive markets will ulti¬
mately be passed on to consumers.
In this and in other ways it will

situation

new

foreign

exists,

period is closing, Per Jacobsson advises greater emphasis be placed
on

businessmen
are forced to spend a good part of
their
time
in
considering
ex¬
change questions -— time which
ought to be spent on their proper
business of producing and selling
their goods. Restoration of mone¬
tary
confidence thus results in

declares balanee of payment problem no longer serves as an excuse
for recovered countries to continue present level of trade protection

economic

placed

Wherever monetary

uncertainty

World respected international economist alerts IMF members against

allowing developing investment

valuations

investments.

....

well be a dangerous disruption of
appeared.
-.trade relations in general.. The
In
matters
of
international time has clearly come when, for
trade,
the
distinction between many reasons, the practice of dis—
"hard" and "soft" currency coun- crimination should be abandoned,
tries has really become an ana- with the least possible delay. It la
chronism.
The
traditional argu- my personal conviction that for
ment for continued discrimination the
vast majority of countries
has thus by and large been elimi- there are no longer any balance
nated..
of payments reasons for the mainThere is, however, the further tenance of discrimination,
question whether a sudden elimSo far I have referred to the
ination of discrimination would particular problem of discriminalead to such an increase in the tion.> With regard to the general
imp'orts of, say, dollar goods, that level of restrictions, whether dis¬
balance of payments equilibrium criminatory Or not, the Fund has
might be impaired. Fears of that certain duties in relation to the*

risks has to be made in the

By Per Jacobsson,*

■

particular difficulty has dis-

this

ex¬

account of exchange"
prices
charged for commodities, and in

provision

' '

.*■

•

firms

CO.

The

Commercial and Financial Chronicle

Thursday, October 15, 1959

(1584)

Stocks —^

Textile

Dealer-Broker

Comparative figures

Reynolds & Co., 120
a report on

—

Also available is

Broadway, New York 5, N. Y.
General Controls Company.

Investment Recommendations

Inc.—Analysis—Grimm & Co., 2 Broadway, New York

Aldens

4, N. Y.

and Literature

•

Express Co.

American

Memorandum

—

ITJS UNDERSTOOD THAT THE FIRMS MENTIONED WILL

BE PLEASED

dum

LITERATURE:

TO SEND INTERESTED PARTIES THE FOLLOWING

—

Goodbody & Co., 2

Also available is

Broadway, New York 4, N. Y.

IN INVESTMENT FIELD

a memoran¬

American Aggregates Corp.

Corp.—Memorandum—H. Hentz & Co., 72 Wall

Basic Products

Street, New York 5, N. Y.
Bayer

the

and

Aircrafts—Analysis—Newburger, Loeb & Co., 15 Broad Street,
New York 5, N. Y.
Atomic

Letter

51—Discussion

No.

economic

Russian nuclear powered ice braker, and

utilization

Industry

Chemical

German

—

Study

Oct.

Smith,

—

39th

31 Milk Street, Boston 9, Mass. Also in the same cir¬
cular are data on Continental Steel, Universal-Cyclops, and

pany,

Clevite.

other comments on

(Philadelphia,

Oct.

convention

annual

-Warwick

1959

Consumers Bankers Association

Traveler—Analysis—du Pont, Homsey & Com¬

Boston Herald

14-17,

Pa.)

Street, New York 5, N. Y.

Barney & Co., 20 Broad

the

Hotel.

16, 1959 (New York City)

nuclear developments—Atomic Development Securi¬

recent

ties

Corporation

Companyr—Analysis—Shaskan & Company, 40 Exchange
Place, New York 5, N. Y.
" /
\r

Budd

Co., Inc., 1033 Thirtieth Street, Washington 7, D. C.

Roosevelt Hotel.

•

Burnham View

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

able

—

in current

Canadian

■'«

Carlisle Corporation—Analysis—Hill Richards & Co., 621 South-

Spring Street, Los Angeles 14, Calif.

Foreign Letter.

Business

Mining

Outline

—

Consolidated Foods Corp.

Cincinnati

issues—

active

most

Gas

memorandum

Consolidated
In

issue

current

of changes in postwar

"Nomura's

Investors

years—

York 5,

survey

111. Broadway, New York

circular

Banks—Review

the

Purchases—Discussion

October

of the

issue

Steel

Also in the

are

ciation

2, Wis.

New York

performance

market

over

Investment Bankers Association

Annual

W. Pizzini &

—

Texas

Co., 335 Bay Street, Toronto, Canada.
Corporation—Report—In current "ABC In¬
vestment Letter"
Amott, Baker & Co., Incorporated, 150
Broadway, New York 38, N. Y. Also in the same letter are
data on General Public Utilities Corp., Plough, Inc., Duffy-

Mott

Rico, San Juan,

G. A.

Trade—Survey—E. F.

Hutton

Bank

Company, 61 Broad¬
^

Science and

;

Securities—Quarterly magazine featuring commu¬
nications, fuel cells, nucleonics, rare metals, chemical and
drug fields — Harris, Upham & Co., 120 Broadway, New
York 5, N. Y.
•

Bzura Chemical
First Mortgage Bonds,

Gas

Corp.—Bulletin—De

Ursuline

the

Winn-Dixie

Stores, Inc.—Annual

SAN

FRANCISCO,

Calif.—Stan-

ley A. Kalas has joined the staff
of
9

Report—Winn-Dixie

Stores,

LOS

ANGELES, Calif. — Douglas
Barrymore has become con¬
Co.,

Dillon, Union
3115 Wilshire

LOS

ANGELES,

Calif.

—

Oreg.

Co.
at

1026

branch

office

Multnomah

under

;

—

opened

the

manage¬

Patrick

LISTS
ur

Exchange.

can

supply

names

hundreds
-of

ambitious

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

1894fc

complete

list

mailing

re¬

quirements.

MUNICIPAL BONDS

FRFFntt,

■

features

LOCAL STOCKS

tested"

request

Canada

Dunhill's

5,000
lists
&

newest catalog
premium "quality-?
the~U. S.,

covering

Latin

limited. Write
copy

America.

today for

Edition

your

free

Dept. C.

Robinson-HumphreyCompany,Inc.
I

Members New York
Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

I
RHODES-HAVERTY BLDG.

ATLANTA 3, GEORGIA

JAckson 1-0316

Teletype: NY 1-376; 377; 378

Northeast

MAILING

CORPORATE BONDS

•

your

The

GiR^rt Auld.

thousands

Sold

•

Andersen,

has

with Bateman, Eichler & Co., 453
South Spring Street, members of

ESTABLISHED

Randolph

W. Sullivan has become affiliated

the Pacific Coast Stock

Company,

♦

PORTLAND,

(Special to The Financial Chronicle)

Investment

Street.

Andersen, Randolph
Open Branch Office

f".

Bateman, Eichler Adds

(Special to The Financial Chronicle)

D'Orazi
Sutter
*

•

Joins Eastman Dillon

Securities

Troster, Singer & Co.

tha

ment of

STATE AND

dinner in

Joins D'Orazi

Common Stock

Prospectuses

annual

Ballroom

(Special to The Financial Chicnicle)
•

Inc., Jacksonville, Fla.

Boulevard.

•

Security Dealers As¬

34th

Grand

Hotel Biltmore.

Inc., 140 Federal Street, Boston 10, Mass.

MCA Inc.

Bought

tha

—

Society and Academy of Education—Circular—B.

nected with Eastman

Units

meeting

Dallas.

sociation

Ziegler and Company, Security Building, West Bend, Wis.
Warner & Swasey
Company—Analysis—Hayden, Stone & Co.,
25 Broad
Street, New York 4, N. Y.
Warren Brothers Company—Card memorandum—May & Gan¬

Company Inc.

6 V2 % Series due 1979

Investment

April 8, 1960 (New York City)

Organ¬

financial institutions only—

Common Stock

annual

Sheraton

New York

Witt Conklin

Analysis — Peter P. McDermott & Co., 42 Broadway, New York 4, N. Y.
William II. Rorer, Inc.—Analysis—Loewi &
Co., Incorporated,
225 East Mason
Street, Milwaukee 2, Wis.
Strong Cobb Arner Inc.—Analysis—Cohen, Simonson & Co., 25
Broad Street, New York 4, N. Y.
Technology Instrument Corporation—Analysis—S. D. Fuller
Co., 26 Broadway, New York 4, N. Y.
:

non,
Tor

New York 6, N. Y.

Oil

Petroleum Corporation of America

Puerto Rico.

25th

ization, Inc., 120 Broadway, New York 5, N. Y.
Packaging Corp. of America—Memorandum—Blyth & Co., Inc.,
14 Wall Stret, New York 5, N. Y.
;.
Pauley Petroleum-^Report—William R. Staats & Co., 640 South
Spring Street, Los Angeles 14, Calif.

Sales—Report—Bache & Co., 36 Wall Street, New York

5, N. Y.

Group

Bankers Association of America

Co., Inc. and AMP Incorporated.

Nortex

Wall Street, New York 5, N. Y.

Rico Financial Facts—Government Development

Puerto

April 6-7-8, 1960 (Dallas, Tex.)

Lockheed Aircraft

year

Comparative figures

th®

—

Inc., 30 Broad Street, New York 4, N. Y.
—

Convention

Americana Hotel.

Interprovincial Pipe Line Company—Analysis—Doherty Road-

Over-the-Counter Issues—Review of 20 stocks—George, O'Neill

Saxton & Co., Inc., 52

4, 1959 (Bal Harbour,

Fla.)

Co., 25 Broad Street, New York 4, N. Y.

Utility Common Stocks

meeting at the

Can Can Room, Hotel Dyckman„

Motors Company—Analysis—B.

(Minneapolis,

Club dinner and

Weeks, 40 Wall Street,

5, N. Y.

Howell Electric

Twin City Investment Women's

Nov. 29-Dec.

Convention

Annual

Minn.)

Company,
Also in the

Steel Products Corporation.

Harsco Corp.—Review—Hornblower

(Boca Raton, Fla.)

the Boca Raton Club.

...

Nov. 18, 1959

Ceco

convention

National Security Traders Asso¬

Milwaukee

Street, Milwaukee

Invest¬

annual

Nov. 1-5, 1959

data

(St. Louis, Mo.)

at the Sheraton Jefferson Hotel.

same

Corp. and Moore Corp.

Company—Data—The

Michigan

Clubs

ment

periodQuotation Bureau, Inc., 46 Front Street, New York

and

4, N. Y.

way,

McLouth

Broeck

house &

National

Retail

Optical.

circular

Association

National Association

Vanden

120 Broadway, New York 5, N. Y.

"Ex¬

Jones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Retail

Fruehauf Trailer Company—Analysis—Laird, Bissell & Meeds,

parison between the listed industrial stocks used in the Dow-

for

East

207

Bankers

Oct. 30-31, 1959

Governor

(Miami Beach,

Annual Convention.

Inc.—Analysis—Alfred

data

are

25-28, 1959
Fla.)

American

report on Owens

Properties, Inc.—Analysis—Cruttenden, Podesta &

American

same

banks
N. Y.

■

Puerto

Corp.—Report—Thomson & McKinnon,
Broadway, New York 4, N. Y. Also available is a report

Fisher

City

ciates.

& Co.,

meeting.

Oct.

Fansteel Metallurgical

quarter—A. M.
Also

third

Over-the-Counter Index—Folder showing an up-to-date com¬

Public

Palmolive and

(Cincinnati, Ohio)

Group of Investment

Bankers Association annual fall

Schweickart &

Limited.

change"—Exchange Magazine, 11 Wall Street, New York 5,
N. Y.—20c per copy, $1.50 per year.
Also in the same issue
are articles on "Baby Boom
Boosts Business." Listed com¬
panies with highest expenditures for national advertising,
and data on Ryan Aeronautical Company, and Yarian Asso¬

yield

Colgate

annual

Diplomat

Building, Washington 5, D. C.

New York City Banks—Comparative figures of 10 largest
—Bankers Trust Co., 16 Wall Street, New York 15,
Lot

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

Banks—Quarterly comparison—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y.

Odd

Cutler-Hammer

City

York

Co., 209 South La Salle Street, Chicago 4, 111.

Kidder, & Co., Inc., 1 Wall Street, New York 5, N. Y.
available is a bulletin on Tax Switching Candidates.
New

—

Company.

Coral Ridge

Funds—Monthly tabulation reporting figures on funds
having net assets of $1 million or more—Kalb, Voorhis & Co.,
York

Analysis

Also, available is

Yacht

Ohio

Ltd.

memorandum

Mutual

New

—

Super¬

The

,at

Hotel.

v
:

Banks

State

Oct; 22, 1959

Sons, 14 Wall Street, New
.

•

(Hollywood-by-

Association

convention

„

Co., 29 Broadway, New York 6, N. Y.

York.

Woodward

•

Canada

•

Continental Insurance Company

of the Steel Industry.

Company of New York, Inc.,

Smelting Company of

Japanese Stocks—Current Information -—Yamaichi Securities
New

Mining and

visors

Hogle &

1959

20-23,

National

Also available is-a

Commonwealth Edison Corp.

N. Y.

Co., Ltd., 61 Broadway, New York 6, N. Y. Also
available is a review of the outlook for Plant and Equipment
Expenditures
in Japan for 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki
a

—Review—James Richardson

Beacon"—Nomura

Securities

Cement Co. and

Co.—Memorandum—J. A.

Electric

(

Co., 40 Wall Street, New York 5, N. Y.

Draper Dobie and Company Ltd., 25 Adelaide Street, West,
Toronto, Canada.
Japanese Stock Market—Study

at the

the-Sea, Fla.)

Products Corp.—Shearson, Hammill & Co.,
14 Wall'
Street, New York 5, N. Y. Also available is a memorandum

Stocks

Oct.

Carlon

Recovery—Review—Bank, of Nova Scotia,

Toronto, Canada.
Canadian

Traders

Bond

New York annual dinner

| INTERNATIONAL LIST CO., INC.

j
I
■

Dunhill Building: 444 Park Ave., South i
New York 16, N. Y.
MU

6-3700

TWX

NYL

3153

Volume

190

Number

5890

...

The Commercial and Financial Chronicle

•

..rrtr_v

(1585)

Hess, Grant & Remington Formed
PHILADELPHIA, Pa.—Announcement
name

is made of the change in
Co., Inc. to Hess, Grant & Remington, Inc. to
business, effective Oct. 19,
The firm will have
memberships on the New York Stock
of Grant &

carry on a general investment securities

1959.

Arleigh P. Hess

■

Freeman

Grant

Clifford G. Remington

Exchange, Philadelphia-Baltimore Stock Exchange and an asso¬
ciate membership on tfte American Stock Exchange.
Hess, Grant
& Remington, Inc. will have offices on the 28th floor of the

80,000 Shares

Roto American Corporation
Common Stock
(Par value $1

Price

$3.75

topics of the Offering Circular

may

per

Share)

per

be obtained from the-wtdemgned-.

Morris Cohon & Co
19 Rector Street, New

York 6, N. Y

„

The Commercial and Financial Chronicle

Thursday, October 15, 1950

(1586)

end

June,

Enhancing the
Of Mortgage Loans

assets, to

Company's
in so-called

National
in the fact

earliest,

Davis stresses the

Mr.

the

not

offers several reasons for high

first,

the

lenders

FHA

make

making of GI loans on a nation¬
wide

The

basis.

extent

our

interest in mortgage

activities can
best be indicated by the fact that
have invested
85% of our available

some

years

much

the year, and these investments funds in mortgages.
■
community in the United States represented 21,66% of the $171.3
.
has played a more significant part billion
of mortgage debt outRefers to favorable Experience
in the financing of real estate of standing.
.
Because of our long experience
In
1945, at the end of World jn FHA and VA loans, now apall typed dur¬
War II, life insurance companies
proximately 24 years, a few brief
ing the past
billion, or 14.81% of
their assets, in mortgages which
at that time represented 18.69% of
the total mortgage debt outstand-

held

than

nation's

the

insurance

life

equivocation
with

pride

greatest

by those of us
privileged
to
associated

im¬

this

with

foreclosed/Measured from

ance

without

and

Oeane

portant indus¬

Davis

which

try,

The
six-fold
increase
in
holdings of life insurcompanies during the past

mortgage

can

may
be of interest.
Since the
Company
began
buying
FHA

purchased
69,793 loans in the amount of
$533,136,000,
and
on
June
30
owned 26,092 FHA loans with balances
of $200,748,000. Of these
69,793 loans, we have completed
foreclosure on or assigned to the
FHA 301 at a loss of $69,169.
Expressed
as
percentages,
this
means that forty-three hundredths
of one percent of our loans were

ing.

state¬

This
ment

figures relative to this experience

American people.

made

$6,636

clearly indicates the important part which life insurance
companies
have played
in the
mortgage market since World War
II, and particularly the important
part which they have played in
providing better housing for the

companies.

years

life

While

supplies life insurance protection
to the American people and at the
same time affords one of the larg-

their

insurance

importance

companies

of mortgages,

all types

invest

industry

loans in 1935, we have

dol-

capital

available to

low

vorable

improve

of whom have served the company
for more than a

quartertfof

a cen¬

cost

the

uninsured
singularly safe in¬

monthly-payment

mortgage is

vestment.

•■«...••

Nationwide

Fourth,

provided

liquidity

the

which

oftentimes

not

appreciated.
years

fully

During the past ten
rates have tight¬

money

probably greatest as lenders on
properties.
Of
the

commercial

Life

Sales' Organization

insurance

nation

wide

companies

sales

have

organizations

and, generally speaking, endeavor
to

their

have

funds

in the

extent

some

the

by a mortgage loan portfolio is an
important factor,;the significance

the

belief that
should

funds

which

from

invested ,^to

sales

areas

iri

policyholders'

return

the

areas

com e,

t hey

other

things remaining the same. At the
same
time, the responsibility of
the administrators of life insur¬
companies

ance

their

holders

through regular amortization and

that they must invest their funds

has provided

prepayments,
dollars

for

higher yields than
asset.

pany

many

reinvestment
any

Also,

other com¬
of the

because

short average life of our mortgage

portfolio,

not to the extent that

occurred

the

depreciation
long-term,

low-yield bonds purchased during
the
and

ible

Life

Just

scale

servicing

mortgage

ments.

much

this

loan

development

mortgages

large

scale, likewise they can put their
funds to work in other fields,"such
as

bonds and other securities. Life

insurance

funds

available

will

always

be
applicants

mortgage

long

as mortgage loans are as
attractive
income-wise as
other

alternative

and

vestments.

competitive
the

other

in¬

hand,

and if mortgages become

less attractive than other types of

investments, it can only be ex¬
pected that funds will flow to

many

use

invest¬
passed

occurred,

other types of insti¬

many

life insurance companies

were

acquiring and

time has

highest return compat¬
can be obtained.

make

companies

extensive

such

safety

buy

when,
insurance

the first major investors to

since

with

can

easy
money
period during
immediately following World

War II.

and

where the

loans—certainly

mortgage

our

has

had

not

about market depreciation

worry
on

have

and

beneficiaries

policy¬

ened, our mortgage iban portfolio,

lar point of view, the percentage "long distance loans," and
is thirteen thousandths of one years ago became the first
the correspondent system
percent. Purchases of GI loans

since 1946 aggregate 33,525 loans
in the amount of $237,560,000. We
borrowers
and
other
users
of $37,097 billion of mortgage loans have completed foreclosure on 609
capital funds. With equal pride, it owned by the companies at the loans involving $3,457,047, with
can
be said that no other cate- end of last December, approxi- losses aggregating $130.07, which
gory of savings institutions has as
mately one-fifth was invested in',' consist entirely of bills received
large and as steady an annual fHA Loans, another one-fifth in after the cases had been closed
pools

est

its present fa¬

have achieved

not

century

expense

correspondents

respective areas in an effort
the service provided
by the Home Office to loan cor¬
respondents. We are proud of the
company's correspondents, many

recent

financial

the

and

rience

years.
?
:
completed—a loan acquired
Third, in addition to the inher¬
assignment from a bank in
ent safety of the VA and FHA
New Jersey. National Life Insur¬
ance
Company
was
the
first mortgages supported by the credit
of the United States Government,
lender to enter the market for the

now—in due time.

segment

favorable

the maintenance of

with

contacts

their

regard held for
mortgages; refers to scale of nation-wide insurance in. the invest¬
ment market; and calls upon the mortgage bankers to solve a prin¬
cipal remaining obstacle to marketability—foreclosures. He outlines
how more uniformity in foreclosure can be attained—if started

in the industry.
mortality expe¬

companies

characteristic of Vermont

been

is likely to grow increas¬
ingly acute in the decade ahead in view of the growth of new firms.
Mr. Davis cites favorable financing results achieved under today's
authority for life insurance companies

lending pattern;

cost

While

main function

the

uniformity in invest¬

over-all need for more

sistently been one of the low net

position without tury, and a few for even half a
heavy reliance it has placed century, and we are deeply ap¬
loans, and
we
are
particularly
upon mortgages as an investment, preciative of the very important
proud that for a number of years
role which they play in our mort¬
our
portfolio contained the first outlet, and the attractive yield it
gage investment program.
FHA loan on which insurance had has experienced on mortgages in

liquidity of mortgage loans

by requiring greater uniformity and modernized state laws resulting
in their marketability in the general investment market.
Moreover,
ment

invested

5.96%

leasebacks.

national

would further enhance

head

Insurance

nothing

say

tional Life Insurance Co. has con-„

control
X&pkees
Life takes great pride contribute materially to a low net
that it was one of the cost position, the company could

additional

the

Life Insurance Company,

By Deane C. Davis,* President, National
Montpelier, Vt.

loam

mortgage

our

portfolio totaled $406,510*000,
which
represents 58.7%
of the

tutions currently avail themselves
of the valuable services provided

those fields and
the

to those parts of
country where the investment

returns

are

most

attractive.

frequently hear people who
are
interested in providing hous¬
ing under some kind of Govern¬
ment
sponsorship advocate that
low interest rates should be made
available either by lenders

by correspondents, that the part
with the VA.
governmental agencies. Their de¬
which
life
insurance
companies sire to assure the flow of funds to
investment throughout the entire loans, and slightly more than oneOf course, a skeptic may argue,played in this development is fre¬ the
country as the life insurance in- half in all other types of loans, and with some justification, that
enterprises which they advo¬
dustry. Furthermore, no similar While
this
latter
category,
of the
very
favorable
experience quently forgotten. The expansion cate is readily undersfandable, but
of the correspondent system and
the simple economic facts of life
group of institutional lenders can course, included uninsured resi- with mortgage loans during the
the rise of mortgage banking on
claim so varied a portfolio over dential loans, the greater portion Past 25 years has been due to in-*
dictate that if they vyish to make

accretion

great

funds

available

for

loans,

consisted

area.

fifteenth

one

commercial

farm

and

in-

flationary

within

trends

the

companies in the United States at

dustrial properties, office buildings and apartfhent houses. It is

United States economy, and we
must concede some validity to this

the

excess

well recognized that the financing

argument. However, it is my firm

billion, reflecting the savings of approximately 124 million
policyholders who seek to provide

of a large portion of commercial
and
industrial
properties
has
been, and is, dependent upon the
funds of life insurance companies,

belief that changes in the pattern
of lending have been more responsible for this favorable experience than inflationary trends,
The. Pattern of home mortgage

The

assets of the life insurance

end

1958

totaled

of $107

security

their

for

themselves

and

beneficiaries
means

of life

The

insurance and annuities. This total
was

one

earlier.

substantial

Mortgage Ho.dings

but

Almost 35%, or $37,097 billion,
of

the

assets

companies
gages

weie

of all

life

insurance

end of

buyers

Board

our

authored

Insurance

Direetors

o£

one

mortgages,

the

loans

all

the

life

•

to *he pattern of financing which
been utilized so successfully
^01 many years in the financing

has

provisiony

(1)

provision

(2)

announcement is

neither

offer to sell

The offer is made

nor a

solicitation of an offer

buy these securities.

only by the Prospectus,

complete

for

•

monthly

debt payment covering all of the
borrower's loan charges;
provision

(3)
JVtis

truly national scale

that

loan

vestor

point

can

record of

use

credit

capacity

the

(4)

borrower;

deeply indebted

terest

bankers

the

life

rates,

pride

throughout
has

been

pany,

in
its

fact

entire

The
ance

correspondent com¬
at the present time it

and

control

With

the

steps
delinquency.

that their projects can
capital market and com¬

out*

long history of life insur¬
mortgage lending through¬
century of development of

the United States has

seen a great
changes taking place in the
pattern of mortgage loans made

plans for becoming any¬
thing other than a correspondent
company. It is true that we main¬

many

tain six investment branch offices,
but these offices have as
their

loan, with its inauguration in 1934;
helped to make immediately pop-

available to borrowers.

The FHA

This

NEW

is, neither ait offer to sell nor a solicitation
of these securities. The offering is to be

announcement

buy

any

only by the Offering Circular. "

perience

pattern of financing,
surprising, that the ex¬
with
monthly-payment

residential
than

the

with

the

loans

even

favorable,

financing

ISSUE

October 6.1959

FIRST PHILADELPHIA CORPORATION

better

Class A Common Stock

experience
of

consumer

(par value 10'/ per share)

durables.

Why

Price

Mortgages

$17.50

per

Share'

Highly-

previously

additional

may

he obtained front the

undersigned.

cited,

reasons

for

LEHMAN BROTHERS

policyholders

Price $3.00

October

1959.

are

Second,

mortgages

provided

per

Copies of the Offering Circular
be obtained from

may¬

FIRST

PHILADELPHIA CORPORATION

».

attractive to

in the

by
utilized for

40
*

engage

security issue-.

commendable social and economic
purposes.

new

re¬

regard for mortgages, particularly
home mortgages.
First, we are
particularly anxious to make sure
our

Corporation fa New York Corporation) will

have
high

we
our

that the funds entrusted to

The

business of underwriting and distributing

addition to the favorable

sults

Copies of the Prospectus

Are

Regarded

have

because

been

they have

favorable return.

Na¬

' 7

this

not

in¬

Changes in Mortgage Lending

that

history

restrain

pete effectively with other seekers
of capital.

insurance in¬

the

enter the

mortgage

The National Life Insurance Co.
takes

rates, but provide complete

freedom of movement for interest

dustry.

remedial

prompt

(Without Par Value)

deavor

long

respondent system, and no other
type of financial institution is so

provision that the lender
the
capacity \ to
take

event of

Common Stock

certain that their projects obtain
funds, then they should not en¬

pay¬

possess

such

of the mortgage cor¬

■

ii !|H C

be at¬

largely to life insurance
companies. No other type of in¬

ments shall be consistent with the

and

4005000 Shares

can

tributed

has

for

liquidation of the loan;

insurance

companies in the country. At the
■

lending today is almost identical

highest

proportions of assets in mortgage

invested in mort-

types at the

Life

Company, now in its 110th year,
long has been active in the mortgage field. Not only have we been

increase of $6 billion over

year

National

Exchange Place, New York, N. Y.

Volume

190

Number 5890

The Commercial and Financial Chronicle

(1587)

1
ular

the

monthly-payment, fullloan
which,
without
doubt, represents one of the out¬
standing developments in the pat¬
tern of
mortgage lending of,the
past century.
Other changes, and
improvements in the pattern of
mortgage lending also have been
amortized

importance, such

the pack¬

aged

mortgage and the open-end
mortgage; and all of these changes
have served better to adapt mort¬

all

companies

state
in

far

admitted

a§

other states

their

that

concerned. For

are

example, recently the State of New
York

substantially

restricted
stantial
event

the

modified

Doctrine

Compliance.

theless,

investments

This

than

and
Sub¬

was

pastexperience

and guaranteed mortgages
has been sufficient to suggest the

probability that the changed pat¬
tern of mortgage loans affords a
substantial

resulting in¬
regulatory phi¬

long

strictions

the

that

During recent years there has
a
willingness on 1he part
of investors to make higher-ratio

made

•

Changes

thus

far

been

580

legal
companies

been

loans
VA

without

FHA

guaranties.

which

this

advisable

fully demonstrated only
experience of the future.

Never¬

kind

previously
difficult to be¬
can

Other

il¬

progress

this direction.

Investment

the

re¬

given.

The
in

all

United

country, today
Thus, more than

life

insurance

doing

States

jority

need

are

Authority

for

more
uniformity
authority for life
companies is likely to

investment

insurance

not

the

designed

of New

will
an

York

the

and, therefore, sub¬
law

New

York,
companies
and become

newly-formed
in

grow

assets

increasing factor in the invest¬

ment field and the

referred

ingly

will

problem I have

become

The job of promoting more uni¬

formity in investment authority is
properly the job of the life insur¬

York

and,

henoe,

subject to the investment

companies themselves, aided,

ance
as

sure

they will be, by the

National Association of Insurance

requirements of that state. While

Commissioners of the 50 states and.

for the

the District

life

present

insurance

high percentage
assets

Columbia

Continued

(approxi-

NEWS

TEXACO

PROGRESS

ted to the needs of borrowers and
to make

their

handling easier, for
Despite the impressive

investors.

progress made to date, much more

remains

of which

done—all

could

greatly improve the position
which mortgage loans will occupy
in

the investment

Improving
Earlier

market.

gusher

that

mentioned

was

The

Marketability

Their

because of their pre¬
payment schedules and anticipated

mortgages,

prepayments,

ity

than

liquid¬

possess more

formerly

the

was

that

case.

This liquidity, could be immeasur¬

ably
in

the

enhanced by improvement
marketability of mortgage

loans.

Diversity of state laws

re¬

lating to the investment authority
of financial institutions materially
affects marketability. While I am

familiar

not

with

the

situation

relative to the investment author¬

ity of other financial institutions,
it

true

that

substantial

exist

ences

differ¬

the

among

states

cars

in the types

of investment which
legal for life insurance com¬

are

panies.

YESTERDAY.

For

example,

the

statutes

of
—

Vermont

provide that under

cer-

When, in 1901,

great gusher blew in at Spindletop

spouting its black geyser against the South Texas sky

world

for

the

abundance. And it

tain conditions 80% home mortgage loans may be made.
Prac¬
tically all states have a statutory
'limit less than that, and in the
majority of states the limit is

t
'

was

being

learned

—

first
at the

time

that

could

panics domiciled in Vermont
not sell a mortgage loan to a

domiciled

pany

unless

the

ards

though

loan

to obtain and market Spindletop oil.

the

can¬
com¬

another

meets

other

the mortgage

the

state

stand¬

state,

even

was

legal

investment when made.

Moreover, the laws of

half

over

the states contain

language, in one
another, attempting to

form

give
,

extra-territorial

their local investment laws relat¬

ing
.

effect

This,

life insurance companies.
where enforced, would be

accomplished by denying a license
to out-of-state companies not con¬
forming to that state's own in; vestment laws.
In the past this situation ha<* not

caused
nies
it

the

has

not

istence

cluding
of

life

because

reason

the

ex¬

of the leading states,

is called

Substantial

compa¬

The

number- of states, in¬

some

what

insurance

difficulty.

great

the

Doctrine of

Compliance.

Simply
stated, this is a rule of interpretaI tion which means that a company
.

;

domiciled in the Green Mountain

State, for example,
.

-".

is held to be
with the laws of
other states, even though the lat-.

compliance

differ

laws

ter's

laws

the

vestments

somewhat

Vermont,

the

from

the

Vermont

in-

com¬

;

reasonably approximate the
regulatory investment require-

;

merits of the other states.

pany

So long as

stantial
.

the Doctrine of Sub¬

Compliance is reasonably

interpreted

and

applied,

com¬

is likely to encounter little
or no difficulty.
But the moment
a state abandons this doctrine and
pany

;

;
-

insists

with
those

literal

upon

the

laws

particular

the basis not

that

compliance
state, then

statutes

become

only of life insurance

investment in that state but at the
same

time would be the basis for

TODAY. America's millions of motor cars have

only been made possible

TEXACO

by the petroleum industry's high production of oil. Today, Texaco is the

largest

producer of domestic crude oil.

Its integrated

worldwide in scope. And its laboratories are
leum's valuable energy,
the future

operations are

investigating not only petro¬

but also atomic energy. By keeping in step with

:. Texaco continues to grow.

CONSTANT
OIL'S

have

—

FIRST

PROGRESS
CENTURY

the whole

petroleum

Spindletop field that Texaco

66%%. Hence, life insurance com_*■

increas¬

acute.

es¬

sentially to make loans better fit¬

ad¬

organized

The great

not admitted to the

New

recently-formed

these

domiciled

ma¬

were

are

compa¬

business

the last ten years.

companies

insurance

this

Need for More Uniform

will

much

are

1,375.

are

State

extent

to,

lustrations could

•

insurance

The,

referred

there

life

reserve

were

either

mitted to do business in the State

lending

mortgage

have

the

are

these

and the

years

However,

that

ject

Ten years ago there

many

mately 80% ) is held by companies

panies.

now

for

During

years there has been
tremendous increase in the for¬
mation of new life insurance com¬

has held

acute

decade.

nies

the

ten

half

passing

lieve

assured.

the

York

because

fluence

servicing loans, and with the advent of office automation, further
extensive changes in method in
"the years ahead become virtually

expecting a
favorable experience
types of loans some¬

during
the last

which New

losophies of other states.

lenders. Many improvements have
taken place
in the methods of

for

increasingly

grow

sig¬ with some
place of what in excess of 66%% of the
leadership in insurance regulation appraised value without insurance.
nificance

ity

the borrowers, with the
likelihood of an increasingly fa¬
vorable experience for mortgage

basis

reasonably

gage loans to the needs and capac¬

in¬

sured

came

into

together
page

The Commercial and Financial Chronicle

(1588)

Commission

Royal

Energy,

neaoed by

Henry Borden, to study
other things, the energy

among

resources

Major Natural Gas Source
oil-gas authority notes barriers to

Canadian

Western Canada's tremendous gas resource

the

accelerated

envisions

reserve

gas

pipelines built and

resources,

the

past

dozen

growth, more market expansion,

$5 billion have been poured into
exploration, development and facilities for transport and use of
crude oil,

ural
gas
and
by-products

000,000

tary basins.
From the ef¬
risk

and

fort

taking
of

p o r a

t i o n s—

cor-

Canadian,
European — there has been built
Canada's largest mineral industry
„

There has emerged

evidence

clear

employment.

oil and

gas

potential in Western Canada far
bigger than that of today, that can
should become an

and

ever more

important factor in North Ameri-

supplies for

energy

can

Western

States

markets,

scale, is

highly

step.

in North America are tumbling
During the past two years
first two major gas pipelines
commenced operation, one serving
the West Coast including the U. S.
Pacific Northwest, .the other serv-

faot,

Tho
live

itude ()f thjs prospec_

reserve

apparent.

twice the volume of gas consumed
in the the entire United States the
.

.....

volume-connumed 16 Th nrp<,pnt_
Canada dur.
..
rinfi
" ostLS
f.

pubicfeS

That has been rethe rapid growth of

sources to use.

some

Canadian

gas provinces and the nation dare
risk putting more of the gas re-

solved

after

300 trillion cubic
in the Western
sedimentary basin."

covery

real

t,.e

Commission,

ieet 0f natural gas

Predicts Gas in Large Volume

Canada,

30rc|en

abouTo^

onlv

oil

forecast ultimate to-

tenth of the

> oh thcr toiecast ultimate to

proved gas reserves, and the new

knowledge of extent- of reserves

exnected

to exceed three tril-

a3S^^*8E&£2.
ranada's

Wps.tf.rn

propriate government authorities

nroduction

de-

remark-

west, and will staid moving into

Foothills

region

the

Rocky

Mountains on the west side of Alproved reserves have grown from of 1962 Canadian gas should be berta. The existing pipeline sys100 to 3,600 million barrels, de- moving
in
large
volume
into tern to eastern Canada .now draws
record.

able

dozen

years

spite production of over one bilProductive potential

20,000

from

grown

Canadian

Pacific

the

front

Lakes-St.

Great

servation Board is far

servative, with
85 trillion.

with

Ocean

Lawrence

region in the East.
Explains

sWPr

hnc

hppn

vpupVi

fn dPvHnnbfp d^nit^tbp

firS 12
!fipl f!r ivnni
tho

Swiinp
Auwf
!? a decade
o^p^frip
over
fmm

fields

onpQPH

proposed

was

ago,

before

the first big oil

was

conceived.

was

that

gas,

primary

line

cause

unfortunately,

year

fr0m

BUfit

be-

over

Royal

Commission

con-

forecast of 60 to

&
H6w fast Alberta's established
Gas Conservation Board; the ap- reserves are growing, despite relPointr?ent of Ian McKinnon, the atively small incentive of markets
gas-wise long-time head of Al- so far, is illustrated by Alberta
£ ? s Conservation Board, as Conservative Board reports. The
Ghairman of Canada's National "remaining established reserves"
Ane.rgy, Boai'd> newly organized Were 4.7 trillion cubic feet at the
u

equivalent of the U. S.-FPC^and
the
beginning of closer liaison

early in 1953, 15 trillion in 1955,

and

exchange of views and infor-

mation

gas

between the

Alberta

Montreal.

all-Canadian route

Superior, Trans-Canada

Lake

now

delivers,Alberta gas to Cana-

djan

Saskachewan,
and Quebec.

markets, in
Manitoba, Ontario

of
in

-.Marketing area covers half
Canaaa's populations centered
Ontario

southern
,

ceedjng
west u

Wisconsin

and

Quebec.

•

Trans-Canada

is once again pro-

a
ser.Ve Midmarkets, in Minnesota,

Illinois

and

—

eco-

at 89

and

Association,

eum

is that of TransLines Li m i t e d,

through sparsely-populated northern Ontario, rather than a
more
economic international route south

Since

...

Pipe

the

centers

ol the Peace River fields
vor approvai 0f the arrangements
connected to pipelines, have under which Trans-Canada would
boosted
estimates of established
>c}eliver Alberta gas at Emerson,
reserves to as i"GGch as 6 or 7 trilManitoba,
to - Midwestern
Gas
lion cubic feet.
These new finds Transmission
Company, which
include
Beaver
Rivei,
Petit, t woujd
provide facilities to move
north

now

^t' ?

evaluated,
1

cubic
*

feet

•

is
now l>efore
power
Commission.

P°rt

Northwest

Terntones, reaching north to the
souice,

gas

The

longer-term.

mate

at sortie 70

reserves

feet.

cubic

sizable

Norman

1,200

Wells,

of the American

border

one

has^ been

bon
th

end

1950,

passed

trillion

1957.

The

gov--Board's latest tabulation, for Dec.

Gas

conduct

Fncruv

in a

pog

hearings early in
^ p
-~rr.

A second phase of "Trans-Canada s export plans, which is conhj}§ent upon approval of the

Midwestern project, is xi .contract
With Tennessee Gas Transmission
Company, which has very large
storage reservoirs m the U. S.
<-'lose to Niagara, on the OntanoThis contract
up to 200
million cubic feet daily, from time

provides for delivery of

Built

Projected
movement

important

maximum 100 million
cubic feet daily and maximum 20
billion cubic feet yearly. Remaining authorized withdrawal at end
a

was

New York border.

time

Gas Pipelines,

1958

should

tnc Wew Y/ar;

oil

Request for

Nationnl'

•B^ard> which

•

interest in Far
prospects. The potential
gas
resources
in these
remote
areas do not, of course, constitute
a material element affecting Canada's
gas
export policy
at the

export is

Aiberta

Board.

of the first matters dealt with

north,,v

Northern

first

the

Canadian 1 export, license
was
£jjed jn April, and will likely be

to spark broad new

The

beforG

conservation

trillion

producing for northern needs fo
many years.
A lew weeks ago a
promising strike of gas and oil
was
made on Peel Plateau, 300
miles northwest of Norman Wells,

nrocpnt

"Trans-Can-

ulti-:-a

oilfield

miles

Federal

port fr0m Alberta commences Oct.

looking to
Canadian

Association lates

Petroleum

the

ada»s application for increased ex-

Ocean, are the third majoi

potential
the

Midwestern s application to im-

reserves.

vast Yukon and

The

the gas to utilities now serving
fhj_ %Pfyinn

are

trillion
mu

Jifmo

At least some, when
expected to exceed

and Jedney.

of Canadian gas from province of
Alberta's ultimate gas reserves
origin
to
other 'provinces
or
are forecast by the Canadian PeAmerican
states
stemmed
from
troleum Association at 150 trillion the Korean
War, when authority
cubic feet, half of Western Gan- was
given to Canadian-Montana
ada's
total
potential.
British- Pipe Line Company to link southAmerican Oil Company rates the eastern Alberta fields near Pagovernment support in Canada for ultimate reserves at 195 trillion,
kowki
Lake
to
the
Montana
broader use of shut-in gas re- while Alberta's Oil & Gas Con¬
Power network.
The authorized

rTrn'n^

What Held the

nhacp

some

ada's

Gas Phase Up
Thp

Canada

—

started in 1956 and completed last

are

the

nd; to

west.

in the southern Plains

wards greater gas usage by Can-

oilfields

American refineries

domestic and

011 reserves

„

sources; the favorable attitude to-

Starting in 1949

a great network of 8,000 miles of
pipelines has been built to link

Western

Northern California.

the

over

1,000,000 barrels daily, with curtaking only

potential.

Before the end

River

C.'s major

Rockies

and Foothills of Alberta,

rent markets however

half of

the U. S. Midwest.

of the many who, like
myself, have followed for years
the frustrations of Canada's gas
industry, that confidence might
seem overly optimistic. However,
the confidence is based upon such
factors as: growing public and

lion barrels.
has

gasfields

miles

2,300

world's longest

the

fem—and

This

source.

gas

Canada's second major gas sys-

pending would draw supplies from
this province, mostly from the

cur-

surplus

1957—has

veloped

linked by pipeline across

now

Arctic

of 1961, more Canadian gas will
be moving into the U. S. North-

until the

America

world-wide

rent

southerly

years

nomic conditions, an ultimate dis-

future still lo be is simply how fast aption now discovered The ques-

My purpose is to tell something
the natural gas phase of that

North

No.

region's

recent

,1
industry, with particular emphasis on both sides of the border can
The Province oi Alberta, poson
its potential, and outlook for process and approve applications, sessing about 200,000 square miles
broader use of Western Canadian and the projects can ba financed
geologically favorable gas and
gas over-the
next few years in and started. My guess is that oil territory, is the most important
major consuming areas of North there is a prospect of the next Canadian gas source, in terms of
America.
major
construction
starting
in known
reserves, potential, and
The oil phase of Canada's in- mid-1960, though odds now tend geographical location to both Cadustry—which was relatively free to favor a 1961 start.
nadian and American markets. All
to grow on an economic pattern
I am confident that, by the end three of the export projects now
of

Canada's

.--.VV-

1955.

tril-.'nomically logical market for Caevidence submitted hon.
by
Brdish American
Oi lladjan gas -which has tieen the
by
industry
and
government
Company. Of this potential about ^uj3ject of Canadian and American
sources, declared: "The evidence
suggests that it is reasonable to 1957. ? WT pr°Vf^n f nf"! °; debate for a decade. Certaiif of
Since then a string of
ew tjie
major obstacles have now
anticipate under favorable ecodiscoveries, .reaching 200
:been cleared away, and odds fa-

gas

problems stem in large part
of dispute and naof final compromise under
which it f inally became possible
f0 start the Westcoast project in
fure

-weighing the

and

size, investment

the

that

large investments have been

The

•

Carl ° Nickle

American and

terms

use

commonCanadian

ing eastern Canada. Three projects
involving large sales to American
markets
are
now
seeking
approvals-

host

moderate

the

sedimen¬

judgment

can

enb

sufe

from the years

reserves

new

United

desirable

.own.

miles

square

pur

available

very

the

sense

possessing
some

region

U. S. Pacific Northpotential reserves are
far
beyond
foreseeable
future
made by the natural gas industry
needs of British
Columbia, and
eral Power Commission and else-, in Canada covering not only ex- are less favorably located than
wherp in the United States over ploration and development, but Alberta's lor Eastern Canadian
proposals to imoort gas from Can- also processing plants, pipe lines needs, they constitute; a major
ada, and the question of commit- and distribution facilities. With supply source for Pacific Coast
ting U. S. markets to supplies un- reasonable access to United States areas of the United States in years
der foreign control, no matter how markets, expectations of earnings
ahead.
'
friendly the nation or economic in the industry would be raised
,
...
■
British Columbia s ultimate gas
the project.
to a level which would encourage
reserves are forecast at 75 tiillio
Fortunately, for both our coun- further sound development."
cubic loet by the Canadian Petiobarriers to
tries,

ada—a region

I'm

yield many more large discoveries.
The Foothills will be the principal

Can¬

Western

be expected, but
satisfactory arrangement among the interested parties
win not be too long coming. Pres-

...

nat¬

resources

ana

years,

entry of Canadian natural gas into

projected, and names the Canadian

some

years

"It

and American firms involved.

Over

these against record of

movement

in gas source for the proposed new
probable export projects.
A 100,000 square mile region in
future reserve growth, the Border!
northeastern
sector
of the
Commission reached the following -the
Province of British Columbia is
conclusion:

writer details Canada's proved and potential gas

North America. The

Berland River, Wildthe
of Western Al500-mile belt expected to

before any sizable increase in gas

and Worsley, are in

Hills

Western Canada and the

and fueling homes in widespread sections of

industrial might,

new

the

over

discoveries

here in our own country,

U. S. A. markets and evkn more to Canadian
next three years. Equally confident, Mr, Nickle

of exports to

markets within

kets

tumbling down. He confidently predicts trip¬

and in his country, are

ling

common-sense use

discoveries, including such potencat

Foothills

weighing

Harmattan-

tial giants as

reviewing the forecasts of
requirements for Canadian mar¬ berta,

Petroleum Association

Canadian

The Com¬

First

After

Carl'O. Nirkle * Publisher of the "Daily Oil Bulletin"
Co-ICdilor of '"Oil in CanadaCalgary, Canada, and Governor of

billion;

1,178

Elkton, 1,022 billion. Ten significant but not fully equivalent gas

Report issued last
October, dealt with Natural Gas.

the

of the nation.

mission's

Scuth,

Thuisday, October 15, 1959

271

time surplus to Canadian needs,
Trans-Canada would have no obligation to deliver any gas, but
wouhl have the Tennessee Gas
market available at any time a
surPlus is available, ^his would
a aL. better load-factor for
Wl*b re"
sultant benefits for all concerned.
Trans-Canada

Canadian

billion.

now

has

about

7.5 trillion cubic feet of gas under
contract in Alberta, about 12%
more than the 6.57 trillion needed
to take care of all its contracted
sales and

the proposed

major export, that by
Westcoast Transmission Company

export to Midwestern at Emerson.
^bl.s. exP01't would involve 204

Limited, began in November 1957,
after
completion of Westcoast's

million cubic feet daily. In total,

The first

650-mile
British

the

line

from

Columbia

Pacific

Corporation

Northwest

system

aRer approval of the Alberta ex-

P°r^ Permit now sought, TransGanada }V?.V. have .permits totalPipeline irJS 6-57 trillion cubic feet deliver-

northeastern

link

with

at the U.

ab^e

with maximum

annual take 331 billion, and maxSeattle.
Westcoast's present au- ®um daily withdrawal 1 billion,
Alberta, the principal gas prov- ties of our two countries.
serves
of
24.8
trillion,
or
the
thority covers export of 125 bil- Present requests cover 700 billion
ince, then in Ottawa, the national
While transborder development equivalent of 25.6' trillion when lion cubic feet maximum
per year
J? 1981, annual maximum 26 bil-*
for 25 years, a total of 3,125 tril- }i°n> and daily maximum 140 mil¬
oter i'nterprovinctel and into" o£ gas marketing is likeIy always converted to basis of 1,000 Btu per
Snii tS
t0 be more complicated than is cubic foot of gas. Reserves m- lion cubic feet. About one-third i10n> With balance already covered
of this is authorized to come from
b7 existing permits. The present
northwest Alberta fields adjacent
1S caPahle of delivering
of debate over
to the B. C. reserves. Current ex- 800 milhon eubie feet daily with-—
iustif^lxnort poIitical and technical considera- and should increase by 2 trillion

.football—first in ernments and regulatory authori-

C^e ? P2l

31,

1958,

showed

border

between

Vancouver

and

established re-

^fyears

whol2) t'ons affecting the interests of ^ more this year This is a rate
^ producers, distributors and con- that can be maintained or exttaTandwhetoer economic con" sumers' 1 believe common sense ceeded, for some years to come,

wdrether Canada
permit

eas

exrart hevonri

th»

derationsor nation*?Clslf' and mutuality

should be the prime consideration
prime consideration
in
pipeline routes and markets.

During

delays

were

same

other

years,

caused

and

other

of interests will
comparativelynpn-in« resolve the
quickly
Droieets
now

penning.

Canada's

Proved

oeiore

with

fields

Western
exceeding

Pincher Creek, with

a^° the Cana- serves of 1,800
established

reserves

750 billion cubic feet include such

giants
a

Hat,

1,425

ou* looping.

of B. C. reserves and the 660 mil-

Pacific Gas & Electric Company
of San Francisco, is the newest
plan to connect Canadian gas to
major established American markets. It involves a 1,400-mile systern, interconnecting pipelines to
be owned by four companies, and
reaching from the northern Al-

lion

The

Canada

Potential

Gas Resources

nrnnts°^efoi^eWashingfon^ ^ed" dian Government
Washington
Fed- ^-Som^ 18 months
menrs

and

provided incentive of markets is

P^ded.
largest

port is some 220 million cubic feet
daily, but could be readily expanded in view of the fast-growth

re-

billion;' Medicine

billion;

Westerose

cubic

foot

capacity of the
pipeline, when price problems are
resolved and permits are granted,
The status of field price — now
six cents per MCF — and borfler
export.price—now about 22 cents
per MCF —
must be improved

The Alberta-California Project,
w,hose principal backer is the

berte

Foothills

Main

lines would

San

Francisco.

36-inch

di¬

ameter, compared with 30-inch for
Trans-Canada and Westcoast. "f'',
Alberta

Ltd., P. G,

Southern

Gas

Co.

subsidiary,

has

Conclusion
To

the

will

Canadian

spur

and

The

ers.
are

producers

serves

exceeding 5

Last March

trillion

cubic

granted

was

export permit by the Alberta

Oil & Gas Conservation Board for
total volume of 2.3 trillion cubic

feet

1984,

with

mum

135

mum

annual

maxi¬

400 million.

billion, and daily maxi¬
Recently it ap¬

being

consum¬

greater

use

knocked

down by the
expanding idle
re¬
greater knowledge of

serves,

American

barriers

pressure

feet.

the tremendous potential, by

ognition

of the

vast

benefits that will

rec¬

economic

stem.from

between

the

three

4.2;

trillion, annual
maximum of-168 billion, and daily
maximum 500 million, with hear¬
ing slated late this month. Appli¬
cation for

mit

confident

Canadian

gas

triple

cubic

feet

that,
of

exports

years,

two

its

abundance

FRANCISCO,

to-the-minute

—

commodities

continuous

sheet by a
Teleprinter. The

bring

up-

the

from

5:15

a.m.

Western
ticker

1:15

are

broad

Union

operates
m.

Pa¬

na¬

cific

tion's

commodity markets will be
installed in West Coast brokerage
houses for the first time
Monday,

• on

page

Calif.

reports

affecting

printed

ticker which will

news

way

effort

every

hasten

the

future.

within

■

make

realization

& Co.

that

*vr'h'W•'

*An

address

American

Chicago,

Gas

111.,

Mr. Nicklc

Association

Oct.

before

the

Mr. Steer

the

Standard

First of

was

extension

instrumental

Time.

Michigan Branch

the

Now Hunter Mutual

Com¬

MAPLEWOOD, N. J.—Robert G.
Jaeger, 580 Summit* Avenue, is
now
conducting his investment
business under the firm name of

modity News Service, Inc. reports
to

million

daily, while Canadian

SAN

great—but West¬

gas

letins

Coast by Ticker

reserve

markets

1,100

over

gas

Latest quotations and news bul¬

Commodity Reports to

Western

and

even

proposed
built, will

GROSSE POINT, Mich.—First of
to creating
Oct. 19. ;
new industrial might in the
Michigan Corporation has opened
prov¬
The new service to
a branch office at 17144 Kercheval
inces
of
commodity
origin, and to fueling
under
the' direction of
homes and industry in widespread traders was announced by Stanley Avenue
com¬
Raymond C. Leonard.
sections of North America. There's J. Steer, Manager of the
A i
n
'i
( * '
benefit for my nation—and yours modity department of Dean Witter

definitely

—in

will

Canada's'

ern

countries.

volume

confident

Western

the frustrations

'and

our

now

Canada, and
set the stage for more market ex¬
pansion. The start has been slow,

put¬

governments

regulatory authorities in

to
am

projects

approved
accelerated

growth

ting resources to work, and by the
beginnings of closer liaison on gas

plied to the Alberta Board for an
Amended Permit for total 25-year
of.

purchase contracts with
re¬

will, grow

volume.

that

over

covering

larger

does_ constitute a major natural
gas source for the future, both for

made gas

100

markets

summarize, Western Canada

the

Pacific

Coast,

and

Witter & Co.

was

Far

subscribers.

one

Dean

of the first

Convention,

1959.

Western

Mutual

Hunter

Funds

Associates.

Canadian export per¬
last December, and

filed

was

this will be

one of the matters to
be dealt with by Canada's Energy

Board, probably early in thre New
(Year.„ Pacific Gas Transmission
Company and P. G. E., who will
build
of

and

the

operate

pipeline

sections

started

system,

their import bilis before the Cali¬
fornia Public Utilities Commission
Oct. 1st, and the Federal Power
Commission
hearings start Oct.
15th.

The

Alberta-California Project
soundly conceived.
It would
provide a Canadian supplementary

supply for P. G. & E.'s huge
ket, now 540 billion subic

mar¬

feet

yearly and increasing by 40 bil¬
yearly.
With large volume,

lion
and

90%

load

factor,

the

pro¬

posed system is ideally suited for
the type of "wet gas" fields which
would be its prime supply sources,
since

these

require heavy

investment

plants.
of

for

capital

processing

gas

than

previously' available
producers—the sys¬

Canadian

will deliver gas to California

tem

terminus

about

cents

per

initial

414

The significance of the $375,000,000 to

•mcf.
*

addition ..to**an,

million

cubic

daily for Cali¬

feet

fornia delivery, Alberta & South¬
ern
has contracted to deliver 30
-jmilliQD .eabic^ feet

daiky 'to Gana-

di.a'n-Montana

Pipeline "Company
at the border, to supplement Mon¬
tana Power Company needs.
The

Program

Paying initial field prices
13 *2 cents per MCF—

about

better

Alberta-California

would

also

Alberta

the next 3 to 4

best be foreseen in these
made

years can

statements

by four of the corporation's top

decision makers.

system

transport gas covered

permit

export

be spent over

"The

success

is¬

company

in the next decade will depend not

its ability to produce, but, to

increasing degree,

sued in March to Westcoast Trans¬

only

mission

ability to sell. We have just completed a huge increase in capacity.
The new $375,000,000 capital expenditure program marks our
intensified emphasis on customer service."

Company,

billion

cubic

annual

involving 800
by 1984, with

maximum

feet

billion

and

daily maximum 165 million.
Alberta

dra^n from southwest

to be

gas,

This

fields

under

contract

Year.

Alberta
is

ited

Gas

Trunk

the agency

Line

Lim¬

chosen

by the
Alberta Government to transport

from fields to the provincial
boundary for the account of TransCanada, o Alberta
&
Southern,
gas

Westcoast and

others

who

serve

expect to serve markets outside

the

province.

This unique com¬
already has an extensive
pipeline network in Southern Al¬
berta
delivering gas to TransCanada, will extend this and also
pany

build

400-mile 36-inch line down

the Foothills Belt to

serve

"In

this program we

will be concentrating

additions which will further raise the
tion.

When you

This will benefit

raise efficiency,
our customers.

operating costs. This benefits

you

Raise

our

changes and

efficiency of the

corpora¬

improve product quality.
efficiency and

you

reduce

shareholders."

."The
over
sums

President

"We

expenditure of this $375,000,000
the next 3

domestic

use

this

money

replace, improve, and add to our
rolling and finishing facilities. We

after that—will increase Republic's

planning to

are

years—and further

competitiveness. We have
only

Thomas F. Patton

Chairman

will process

our eye not

of ways.

foreign competition but on
competition, too. And on the

change
we

steels in

a greater

This does not
our

variety

mean we

product mix. It

realize customers will be

competition from other materials. We
want customers to come to Republic

demanding, and therefore, closer

first. This

trol will be

their

means

will

anticipate

their needs

fabricating needs. Customers are

future. With

all the time with

you

ment. To

the

modern

equip¬

steel mill

operation,

have to start to plan two years

before you

compete, we must anticipate

equip¬
ment, and be ready to provide the
finishes, sizes, and other specifications

now

they will bring to us in the future."

our

requirements of their

con¬

required in order to meet
and requirements in the

increasing the efficiency of their plants
more

will

means

new

build. We are building
specifications which are
today but which, we are

meet

advanced

convinced, will become usual among
customers

in 5

years."

the new

export, projects when they are ap¬
proved. Trunk Line's future role
will

its

Charles M. White

Westcoast, would be transported
to the Spokane area for delivery
to the existing Pacific-Northwest

Pipeline Corporation line, supple¬
menting American and Canadian
gas now serving it.
Westcoast's
application for a Canadian export
permit has been made, and will
likely be heard by the National
Energy Board early in the New

Ernest R. Johnson

Norman W. Foy

Vice President in Charge

Vice President in

of Sales

Charge of Operations

include

supplementing supplies to Alberta utilities, and-getting gas to additional communities
in the

province.

Voting control is

REPUBLIC

shared

by Alberta gas producers,
Alberta utilities,
export compa¬
nies and directors

public

large.

non-voting,
some

40,000

was

CLEVELAND

representing the
Bulk

slock,

purchased

public

shareholders.

WORLD'S

IINFUVriON

HOBS

US ALL

WIDEST

RANGE

1, OHIO

STANDARD

STEELS

AND

STEEL

PRODUCTS

The Commercial and

(1590)
-k

demand
rate

for

income

level,

homes

less
sales

present there is a severe
credit stringency
in the making
which, if not reversed, could turn
the economy into a decline, as has

of consumer credit

plenty

and

effect

leveling

off

Failure

population,

old

year

the

will

not

persons

occur.

belief

that

the moves which have been made
have
given
strong
impetus
to

tions

and

^"i-1

should
fore

";*u

with

effort

that

beings

to known

for

and

when

1942

Carrier

help

readily

making
The

plan

tne
the

operation,
first

our

ask

Fred

Hoyt

ourselv
what

kind

was

society

political

after

the

over.

Made

Our

basic

planning
the

uDon

was

prem-

thaf

bidto'

nafio/ wtould^
old-style

money

this

r^vert^to

neither

conservative

ana

popular
popular

less

creau

crisis

that
mat

toward

surge

the

bas4d

between.

described

and

capitalism,

has

aptly

Caoital-

"Peonle's

ism"
"

We felt
•effort

that

sure

would

everyone'who

tremendous

made

keen

gainfully

willing to work
employed.
In order to

would

so,

channel

the

was

fruits

necessary

the

recession

is at

fact,

credit

/Hi pnn

t/~»

are

clearly evident

people

their

demands
and

cars

ers,

large

for

such

better

products

homes,
as

lawnmowers

power

boats,

and

M,a

Instead

they;

accumu-

lated substantial savings.

Accord-

infiXi lW-aS demands for themthe
P°ssible during Jo
fulfill their
early
of

postwar

largely

years

out

sayings.
After

the

buying

flush

cash

there followed a
liberal use of credit
plentiful and cheap,

was over,

period
which

first

of
was

Expansion

instalment

credit

'—

was

fed
ted

First

.was

tipon

the

some

growing
various

programs

dependence

"welfare

cushion

as a

ing

our

cepted

tho

ac-

business.

job today is to estab-

nsh
a
degree of buying power
equivalent to tee related volume
of discretionary spending. During
recent years the privilege of buy-

|ng

credit

into

has

and

been

extended

fields

state"

The

against-

potential

desires of con-

sumers for durable goods is very

Inclined

^60
depend upon the
amount of income available as a
base for establishing credit and
uP°.n the total amount of credit
available.

This

adversities.

for

save

rainy day.
most
evident
the period of
a

perhaps
in prolongation of
discretionary spending among
older
people, protected as they
were by old age pensions and by
was

health

insurance

tended

and

usefulness

also

iheir

J&Trm^eadVanCe'
Incidentally,

all

teore reliance

this

upon

£reat indeea-

total volume

personal income, the

omy in
nipted,

1960

will,

still

means

the economy.

disastrous

We have

^h^Xim^^mpl^men'tAct of
oy^meni Act ol
p

1946, Federal support of housing,
and the
to

use

regulatory policies

make money

when such

and

credit easier

is necessary to bolster

the economy, as was done in 1954

and

again

1957-58,

joificant to this topic

)

that

sig-

most of

sell

to
jn

i960

wlli

small

industry

least 6%

cars

which

(The

cars.

ex-

million
million

advent

0f new domestic small models will
some drop in imports of for-

cause

^TS^'^AndTifp^le

unless
the

econ-

inter-

upward

^aUn "om°e

struction.

•

aware

tive capacity

can
0f

buy, and

the

the nation to

Durables
nttprnnt;np

«n

tion

anv

support

General

Obligation
1960

Bond issue at the November,
General Election.
'

Smite,

Barney_ &

Co.

was

selected by the District's Committee on Financing, Peirce said,

because of its excellent nationwldf reputation, in the financial
world. and !ts uwlde,. and ™.ne,d
experience in handling difficult

Sa
nations and

public agencies.

Preliminary
studies vindicate
the-district's financing costs
will aggregate some $800,000,000
less such amount as may be involved' in the construction of a

tube 'n tee event that:

this portion of the System

is con-

existence

the

sub-

...

Joins

excess

with

the

various

producers

GIore„ Forgan

(special to the financial chronicle)

BOSTON
tine

Mass—John

with

now

Valen
For,

ore

and better sales promotion.

cind

Th^se SrouPs have been singled

This

.g the American way of economic

Merrill
smith,

Tncornorated

ncorPorated-

out tbefaUS^ theJL
P™frnhaThe results are bound to
W'fk R
C
CU '
k
C narticidlrl^ Pfrom the broaden the market and in time
With B. C. Christopher
fan^/iw fnrmatinn<; soak up excess capacity.
More
(Special to the financial chronicle)
th^ Parlipr
This
table volume
means more jobs, lower TOPEKA, Kans.—Harry S. Dole
shows
increa^e in 'i960 Qf 1.4% Prices mean more buFinS P°wer- bas,beco.me assoaiateidnC.
t-

vpars

over

1955.

The

first

three

groups

6/10%

increase

the

less

of 1%.

figuring production capacity

than
'

into account/the

total

it is not always customary to take

Now

all

know

that

Gnristopner & Co., 609 Jackson
btreet-

°f °"r «"e. mostly new national
Plar\h The potential is away beyond anything yet produced. Man
h®sn t kept pace with his mechan-

population has grown and is exPected to Srow more than this
table indicates. But the bulk of

potential capacity

fc-rwin Adds to btaft
(special to the financial chronicle)
DURHAM, N. C. — Charles C.

Ainsworth has been added to the
lcal advances. In order to achieve staff 0f Erwin & Co., Inc., Ill
oldsters, all of whom must be fed the potential we need better man- Corcoran Street,
and ci0thed
which means diver- agement of these production facil-.
is

jncrease

sjon

income

and

children

ities, better management
relations, sounder labor

portion of disthe purchase

greater

posabie

labor
leader-

Gf non-durables and less available

for

purchaSe

consumer

efficient distribution.

shiP> greater willingness to work,

Overtnn

•

v^verion Auas

(Special to the financial chronicle)

The, CORONADO, Calif.

—

Robert T.

potentials in reduced prices and McKinley has been added to the
must be regarded as' an .offset larger volume are very great in- staff of J. A. Overton & Co., 1134
agalnsit higher total disposable in- deed.
:
Orange Avenue,
durables.

this

extent

some

come.

It is

predicted teat in 1960 con-

With

Pr^ »)n be
made toward these goals, and that

be relle?d

™arket and ^ Pr°greSS

thf tren,d uto^ard. hlgber interest rising sales volumes in most con-

rates will be limiting factors
residential construction.

Male

Year

yet

outmoded,

'
■

1950

1955

upon

Mitchum, Jones
P

Nankfn

and Sheldon J
have become associated with Mit-

durable lines.

chum,

;

SUmer

Western

Population by Certain Age Groups (in

millions)

Total
.

20-24

25—29

30-34

35-39

40-44

20-44

5.8

6.0

5.7

5.6

5.1

28.2

5.4

5.8

6.1

5.7

5.5

28.5

re-

1960___.

5.7

6.0

5.9

5.6

28.9

that

1965-—.

6.8

higher personal income will spell

1970„:.

8.8

it is predicted that prices will

main

hopes

«"tdo each other m the way of He was formerly with
product'improvement, lower costs, Lynch pierce Fenner &

look at some population forecasts. (U. S. Bureau of Census.)
us

district

pr^ent its plan to the voters in

within an 'industry striving to gan'& Co., 201 Devonshire Street.

into specific markets, let
^

The

torate.

Jones & Templeton,
Building
Both

First
were

the old law of supply

convinced

engineering

fPab?le tant course all of this is impor-^:^^ ..fiiJUEi. Conf",n'to- formerly with & MerrUl Inc.
thatnothing Ot to producers of consumer New York City, Sept. 28.
~
Lynch,
Pierce, Fenner
Smith

more, to say

demand, which nobody

has

pro-

and

structed and £nanced by ).he S?ate

of
production
capacity. Such a condition usually
results, in intense price competi-

Population Growth and Consumer

growing flood of imports,

Relying
and

stantial

wte

rjs| ^ j/s^fffcton/Lr/toc

before

v.olun^grew_even Division of Trans-Bay Crossings
during depression years.
under a lease arrangement with
In our-business we are keenly
Transit Director. ,

of stubborn resistance in certain

government

avoid

The

swings in

pects

the mef„stgah SKS.

Pressure

government

ex-

health

innovation. The best information
have been able to obtain out

something of a deterrent to con-

the terms of payment liberalized.

People felt
free to incur obligations and less

economic

4 Ov

o{ Detroit is that the

and

This background has hppn oivpn

System

sue can be submitted to the elec-

rising construction costs, they are

de-

the

of "doing

way
a

serious

adopted

was

To obtain

means

out of

way

pression

factors.

new

darab'f

air

'/r/Zr /i tP„
*22? ,Th? practice of buying on credit
S wS unable to Srf Sr which thirties
K spend their
fiad become more of
general
people were
the
fightearnings.

mdustry-rWill

The

significant product

a
m 1_

but rates are getting up to sumer
p„jn) ,„hBr.
tngftther-^with-JgFe .rgducgd,.

ooSruXtirodurttont'oreoods co"ditionin^ to">antion a few-further
r,

In I960
that this

swimming pools, automatic wash-

only

not

wants.

io«n

bound to rise and we may that saies could go as high as 7.
expect closer scrutiny of ap- million if the new models are acplications, but in general there cepted by the public with enthuthe desire to better one's position should be plenty of credit avail- siasm.
' ;
V .
*n life- There was more time for able to most people who want to "
recreation.
Everyone sought t£ buy on time.
r
A good many years ago I made
eaape drudgery.
"Keeping lip
xhe mortgage picture is tighter. a
Wlth the Joneses
has been Th
Qnnniv nf m0rteaee monev is
and volume In a numoer ot con-

nicer furnishings, the latest model

satisfy

happen.

demand

■

benefit from

are

•cning markets—to make it pos.-sible for the maximum number of
to

cnlim

lt is not disturb-

highs

the deferred

upon

-i

;

extensions of credit. Interest rates

but their

ingly high when viewed from the
standpoint of its relation to dis-

scrapped for a new phrase. We
are, nowJaAgely__knflsyn^ "status
seekers.

the

,for the p™?°Sert S2sto2

suspect that when the

Jbat piled goodinchance
up
1958.
there

While outstanding credit

new

financing

Financing

But in 1955 the total was almost

inroa(j
.

of consumer
1

°*

developing a final plan,

, .

tends to be related to disposable

income.

was

inflation

y-v

million
including
million including

4 7
4.7

-was

Son. ^

may
J'n

These forces

premise that will ?igures are ail in, 1959normal but ?• supervisors 01 the districts
the t0 be
will prove
disfiirfs
little above
tne
J0 avoid J/t enough to have made much five-major counties before the is-

skiaful

The amount

productive effort into eVer broad-

needs

Offers Predictions

Fortunately, for the consumer

nation's

ap-

Directors, Smith, Barney & Co.
will develop a plan for financing
the five county Rapid Transit
System in collaboration with the
the domestic sale of district's
engineering and eco-

488,000 imports.

demand was excessive. And this
led to expansion of production fa4 p^ie income. Since' income is
"lities which in turn created exDected to rise, we see no immore jobs, more purchasing power, mediate ciamor for brakes upon

"go

Someone

figure
figure

of fiscal policy

Communistic." durables industries, as this stimuInstead, there would be something-^us wore °ff h was replaced by
it

would

*ior

run
/

uncertain-

these

iQfif)
i960.

in
m

are

years.

war

contract

J ohn M.
said the fibelow that figure in any one year, nancial consultant firm will inIt .was missed badly in 1958. The vestigate various possible methods

situation

present

sufficjentIy

either

stored by unsatisfied requirements

the

the
with

they
inflation
inflation.

nrin*

price

management

During the immediate
peno?. den?and was bo "

that some-

topic requires

means

year

recession,

nf
of

Although

higher standard

terms

and

ties, the following predictions are

we
we

Administration

the

rick
risk

the

1960,

engendered

belief

System.

thing be said concerning the outlook for automobiles..
Our own
calculations are that a normal car

and credit easier in order to avoid

confidence

during

Political-Economic Assumption,

ised

expected

opment of a plan for a San Francisco
Bay
Area
Rapid
Transit

approximately 6 million cars.
It nomic consultants.
the Federal Reserve Board move is
a
difficult
task
to forecast
General. Manager
in the direction of making money; whether sales will
be above or Peirce of tne . district
Should

available.

e*s

mand
war

that

Barney

into

be expected in

means

This

suggests the possibility of a
bad enough to impair pub-

confidence;

District

nationally known investment banking and financial con-

proved by the District's Board of

The behavior of securities mar-

living under this umbrella of gov¬
ernmental protection has sparked

move

was

this

may

maKing

first

postwar

outlook

take

of Federal aid to various

and

groundwork
its

the

durables

what may

flafion

Corp. began
laying
the
for

paramount

segments
of
the
economy.
At
segments
of
the
economy.
At
present emphasis is on fighting in-

Accordingly,
in

forecast

any

the way

forces.

consumer

account

predictable

back

lie

Acc'ordingly

future.

near

Francisco

•

Under

break

the

s e e

reaction

human

demand

consumer

start

kets

the demand for consumer durable

goods.

all

attempts
forecasting of economic coridiour

situ-

the risk of a fman-

runs

San

Transit

ation which in the minds of some

cial crisis in the

It
at

Rapid

Outlook for Automobiles

long-term securities at reala.

county

^ 13 retained Smith

suiting firtti, to conduct financing
studies in connection with devel-

starts

States

interest rates creates

istic

^
^

prediction is that housing
in
1960
will decline
to
around 1.2 as compared to 1.350
in 1959. - However, this is still a'
pretty good volume.
Qur

Congress to allow
Treasury
to

United

offer

Author anticipates auto

and hopes a severe credit stringency

million

seven

tighter money.

and

1957.

developed in 1953 and

new

greater volume.

situations

similar

when

occurred

aggressive promotion for greater volume to offset

supports

reaching

stimuli

demand,

replacement

living,

Financial Consultant

search for a higher standard of
living, replacement demand, and
the stimuli of new products and
more
aggressive- promotion for

He relates consumer

predicts, despite higher interest

income

San Francisco Area

tions, they will have to rely upon
increased
personal
income,
the

Wants Credit Eased

consumer

Smith, Barney Named

formations, with less Federal supPort, and tighter money condi-

much

big
"if"
is—How
credit will be available?

they will have to rely on this and the search for a

Federal

and

mo£t

October 15, 1959y

durables that go into new homes,
any/ increase in family

The

Producers of consumer durables that go into

time.

standard

products and

credit

personal

told

are

declining

and

rising

purchases

higher

volume

sales

rising

expects

except those going into new homes.

Thursday,

Lacking

physical

volume.

By FRED F. HOYT,* Vice-President, Carrier Corporation
forecaster

buy

ability

Sales

1960 Sales Forecast
durables

Financial Chronicle

relatively

stable

With A. J. Taranto

(Special to The Financial Chronicle)

SACRAMENTO,

Calif.

—

Albert

Fong has been added to the staff
of
A.
J.
Taranto
&
Co.,
1330

5.4

5.9

5.7

5.5

6.1
.

5.6

29.8

5.9

6.0

31.9

Twenty-First Street, members of
the Pacific Coast Stock Exchange.

Volume 190

Number

5890

.The Commercial and Financial Chronicle

(1591)

The Bank of England is in

that the memoranda submitted

tion

the

a posi¬
bring about this situation

selling forward, some of its
holdings of dollars, thereby widen¬
ing the discount on forward dol¬

lars.

This

could

done

full

Committee

England
also

and

that

the

agreement with the United States
authorities which have no desire

ciple

Among the economic consequences of the outstanding Tory victory

situation

that

means

By Paul Einzig

can

expected,

according

Einzig,

Dr.

appreciation of British equities in the next
set-back in

(3)

Wail Street;

inlfux

(2)

(1)

are:

marked

12 months—barring no

level.

the

event

outflow

of funds without

recourse

publication

the

of the

volume

evidence

given

with

considerable

inter¬

will

authorities

when

appplication
than

case

prin¬

device.

imagine

its

for

case

could

the

view

are

the

that

difficult

given

confirm

coming British boom is not threat¬

towards
device

offsettingly higher interest

•

the

attitude

application

described

above.

of
I

the

expect

ened

by high

United

money

States.

Street,

rates in the

with Zilka,

now

Pacific

the

members

Coast Stock Exchange.

With

Copley & Co.

(Special to The Financial Chronicle)

DENVER, Colo.—Max D. Stern
is

now

forth¬

the

Ore.'"—

Vernon
Smithe*
& Co., Inc., 813 Southwest Adler

Basler is

assume

that

(Special to The Financial Chronicle)

PORTLAND,

stronger
drain

sterling resulting from high New
York money rates in existing cir¬
cumstances. It is, I think, safe to
therefore

Now With Zilka, Smither

and

dicate the official British

interest rata, the writer believes the Bank of England can discourage
an

would

Treasury,

evidence

favor

Bank

est, because it is expected to in¬

U. S. A.

rise in the

complicating

abroad

of their high interest rates.

awaited

rising London Stock Exchange trend and decline in yields to Wall
Street

from

before the Radcliffe Committee is

resulting from

firmness

capital and further Sterling

The

funds

containing

and

boom for the next year or two;

attract

the

verbal

officials,

the

818

with Copley and Company,

Seventeenth

formerly

Street.

was

Birkenmayer

with

Co.

rates and credit squeeze.

LONDON, Eng.—The extent of the

Government's victory at the gen¬

the yields on

eral

election

surpassed

optimistic expecta'■1 :V -■'/ ■

The

on s.

Oct.

the most

even

for

returned

ma¬

jority. Instead,

Mr.Macmillan

Admittedly, the British econom¬
ic horizon is far from free of storm

i t y

nearly

clouds.

large

the

last

"in

five

Einzig

that for the

safe

Britain

years

will

from

nationalizations, vin¬
taxation of profits and of

dictive

incomes, and other anticapitalist measures. It might even
mean
that another five years in
higher

dis¬
Party,

opposition would lead to
integration of the Labor
its

that

and

form

would

elements

moderate

sort

some

middle

party with the Liberals, in which
the

case

stand

winning

ever

There

election.

would

extremists

chance

the

tant

Paul

This "means

widespread

near

envisaged. The Trade Unions, \
smarting under the defeat of the
Labor Party, are likely to be very
truculent

coming

being

Stocks
This

conditions

will

would

labor

OFFICIAL

the

chances
will

troubles

immediate prospects.

fere

In fact after
few hours of excited dealing a

that

AT A GLANCE

belief

widespread

United

just before and immediately after
For. all figures pub¬

lished during recent weeks indi¬
cate

progress

consumption.
recession

the

in production and
The recovery from
1957-58

now

complete, and we are witnessing
the beginnings of a boom which

with

duction

the

and

expansion

Sales and earnings for the fiscal

W!h

June

pro¬

Company.

London

don, especially if

by the influx of American
continental capital to take

and

advantage
in

of the

London

the

British

Stock

industries.

exchange

foreign

rising trend on
Exchange and
Moreover,

dealers

stantial international balances

are

likely to be transferred from New
to

York
tend

increase

and

reserve

money

London.

and of

the

would

visaged.

British

the

may

gold

keep

bank

further relaxation of

control

change

would

British
The possibility

rates low.

reduction

this

All

.
_

now

rate
ox=

en¬

In such circumstances there ap¬

to be no justification what¬

pears
ever

for

yields

the

discrepancy between
of equities in Britain and

the United States.
Street

steady

And since Wall

should

easier

become

York, in

There
undue

the

fiscal

the

increase of

year

were

13.22%

over

retail

food

chain

industry.

EARNINGS

British

the

would

and

JUNE

rates

having
device

Soles

the

nate

the

profit

funds from London

dollars.

the

differential

for¬

discount

14,011,512

12,269,695

$2.22

$1.95

2.10

2.08

Employee benefits have been continued, including
employee stock purchase plans, provisions for
profit sharing and retirement, comprehensive
group insurance and sick benefit programs and
scholarship funds. Employees have purchased 297,240

since the
inception, of the stock pur¬
plan in 1952 and more than 25% of regular
full time
employees were stockholders in the Com¬
pany at the end of the year.
chase

UP! STORES:

Retail Stores

of
*

inter¬

est rates in London and New York
on

interest

......

Wholesale Units

WINN-DIXIE STORES, IN&

AND SUBSIDIARIES
Stores

DIVIDENDS:

Dividends

paid

6,783,701

Operators

$1.08

Retail

Fc«4

Caroling,

Kentucky, Tennessee, Virginia and Indiana.

GENERAL OFFICES: JACKSONVILLE,
Per Share

Florida, Georgia, Alabama, Mississippi, Louisiana, South

North Carolina,

FLORIDA

,1b

(Present annual rate $1.20)

the-

rates.

5,MS,802

wide

between

profit

Percentage to Sales

elimi¬

New York.

forward dollars is at least
as

■

BENEFITS

orthodox

transfers
to

amounted

taxes

common

14.61

Per Share

without

market. to
on

per

$588,568,919

13.22

Net Profits After Income Tax

reserve

Nowadays, most arbitrageurs wantto
cover
the
exchange risk
on
such transfers by, selling forward
dollars at the same time as buying UP!
spot

$666,370,231

IP! PROFITS:

de¬

high interest rates and
This
device
is
in

$2.22

share as
compared with $12,269,695, or $1.95 last year,
computation for both years being based upon the

EMPLOYEE

protect'

York,

intervention

the

1958

fears.

have

gold

New

exchange

28.

year.

Percentage Increase

squeeze.

official
ward

JUNE

earnings after Federal income

$14,011,512,

number of shares outstanding at the end of each

device by which

possible

to resort
of

credit

1959

UP! SALES:

against the effect of higher inter¬
est

77.

YEAR

to believe that

authorities

adopt

FISCAL

attach

such

Net
to

funds..

reason

importance

I have very reason

cided

addition

transfer of non-British

to be reasonably it wipes out the
discrepancy is likely higher New York

appears

the

New

antici¬ sterling

pate a revival of the dollar scare
during 1960, in which case sub¬

the

result of a
exchange

a
of

relaxa'tion
it

for British funds to be transferred

is likely to be further accen¬

tuated

for

ended

the previous year and Winn-Dixie continues
to rank seventh
in annual sales volume in

resulting decline in
the gold reserve might have to be
arrested by means of high interest
rates and credit squeeze in Lon¬

control

ness

year

front of
history of the

out

the

further

the foreign exchange market

again

were

Sales

$666,370,231,

belief, if high Treasury Bill rates
time money rates in New York
should
attract
large funds from

two.
In

1959

any

consumption in Brit¬

27,

might well continue for a year or

sterling responded to the election
result by. a sharp rise.
Its firm¬

SALES

States might inter¬

ain, by f orcing the Bank of England
of profit-taking. But in the long to protect sterling from the
ef¬
run British equities are still rela¬
fects
of
high
interest
rates
in
New
York.
tively low in spite of their rise
According
to
this
the election.

further rise in interest rates

the

result

PHOTO

f.'

not

Goes Up

There

S. NAVY

inflationary

the

If the U. S. A. Interest Rate

strikes
settled, even
most

mean

increases.

that

of
bal¬

seems

that

averted

this

are

probable

ance

marked reaction set in as

sweet

part

organized labor. But amidst boom¬

the election result on
Oct. 9.
Possibly the record rises
in
many
equities were exagge¬
rated from the point of view of
change

the

unduly
the progress
of
production, and that any setback
will be purely temporary.

explains

optimism:

attitude

reasonableness

reaction of the Stock Ex¬

violent

chances

hinder

Underpriced

Held

the

course

negotiations. More¬
evidence of fortunes

made on the Stock Ex¬
considerably lessens- the

change

wage

economic progress.

the

wage

the

over,

rate the British nation can
forget about politics and concen¬
on

important

likely-tq arise
future.
Some impor¬
are

claims are likely to be
rejected, so that; the possibility,'
of major strikes-early in 1960 must

trate

number

wage

feeling that for the next few years
at any

disputes

wage

rl iament/

of-

major-

with

.very

back

came

appreciation

marked
equities.

British

twice

would

rise

smaller

should not be
overlooked.
But, barring a set¬
back in Wall Street, the next 12
months or so is likely to witness

with

reduced

case

level out the yields,

that

they would be
a

Wall'Street might weaken, in

which

hoping

was

Stock Exchange.
Of course
possibility that in the mean¬

time

Conservatives
were

don
the

that

most

disappear through a decline in
British Equities. This
would
mean
an
average rise
of
between 40 and 50% on the Lon¬

COPY OF COMPLETE ANNUAL REPORT AVAILABLE ON REQUEST

THE FASTEST GROWING
FOOD CHAIN IN THE

SOUTH!

Financial Chronicle

The Commercial and

Thursday, October 15, 1959

(1592)

The Market7^andrYou

!pb Bank and Insurance Stocks
•:
'■ :
'
BY ARTHUR B.

Daniel W.
Daniel W
Cook
has
joined
the staff of
Anderson, Randolph & Co., Inc.,
rv»in
Colo.

rvEuvjvF.R
DENVER,

—

Boettcher Adds

This Week

Colo

JUNCTION,

GRAND

staff

the

—

added
Boettcher and

Bank

National

First

Company,
Building.

WALLACE

—

Bank Stocks

Stocks

ILLINOIS

CONTINENTAL

TRUST

AND

BANK

NATIONAL

-—————

■

STREETE

zation

in 1857, four years prior to the Civil War. This was the first
Illinois to act in trust capacities. A long series

pany,

With Columbine Sees.
Colo.

DENVER,
Bollard

Charles W.

—

with
Corp., 621

affiliated

now3

Securities

Columbine

Street.

Seventeenth

Copley Adds to Staff
(Special to The Financial Chronicle)

•

COLORADO SPRINGS, Colo.—

Henry
added

been

has

Hostetter

the staff of Copley and

Company, Independence Building.

Wachob-Bender Adds
(Special to The Financial Chronicle)

1924, and the Continental National Bank
Company in 1927. These two large banks merged in

and

Trust

It is today the largest bank
deposits.
7
: .
7
• 7
The Chicago fire in 1871 destroyed the buildings of four of
Continental Illinois Bank's predecessor companies, but their cash
and securities escaped destruction and the banks continued their
operations from private residences. It is of interest that the banks
paid out deposits on the word of the depositors, as their records
1929 to establish the

in the Middle

Corporation, 3624

Farnam Street.

;

branch banking, hence the States

C.— Charles
K. Ellison, Jr. is now with Mor¬
rison and Company, Inc., Liberty
Life Building.
N.

ST.

has

and.

from Banks

Due

Gov't Obligations'-..--

U. S.

Other Bonds and

Banking House
Other

Securities

6,900,000

____

11,203,999

Resources^-

The bank's

(Special to The Financial Chronicle)

Ga.

—

Jack

Fagan

and Charles R, Shepherd, Jr. have

been

added

the

staff

each par

vento
now

Retzner

members

California

are

Street,

Pacific

the

above

the

news

0.2

—

0.6

for

$52,000,000, apart from its- statement reserves.
It is expected that the Midwest banks, such as Continental
Illinois, will benefit materially from the opening of the St.
bad debts of

Lawrence Seaway.

Coast

Statistical Record

—

—Price Range—

Invested

Earnings

Assets

$58.64

$4.13

$624

1950

61.04

4.42

621

2.40

1951

63.72

4.83

653

2.40

1952

66.36

5.27

744

2.70

70%

58 y4

NEW YORK

1953

69.31

5.72

691

3.00

70%

6OI/4

1954

72.35

5.41

699

3.00

75%

CITY BANKS

1955

75.47

5.85

693

3.00

83 y4

71%

1956

78.71

6.90

696

3.45

83y4

76%

82.63

7.70

689

3.60

711/s

87.09

7.80

684

3.00

1949

Quarterly Earnings

Comparison

Bulletin

Request

1957

1958

Laird, Bissell 8 Meeds
Members New York Stock

$2.40

58V2
,

120 BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell

Teletype

1-1248-49

Specialists in Bank Stocks

NATIONAL

AND

BANK

GRINDLAYS

LIMITED

Amalgamating National Bank of India Ltd.
and Grindlays Bank Lid.
Head

Office:

BISHOPSGATE, LONDON, E.C.3
London

"In this

about
more

decade the

43%
*

58%

1141/2

5iy2

75%

equity has increased some 55%; earnings

Sick Patient

No doubt the

greatest una¬
nimity of opinion evinced by
the market community is the
bearishness

toward

the

usu-

ally-so-popular <oils. Reflect¬
ing Wall Street's proclivity to
kick an industry when it's
down, the commentators are
hammering home the follow¬
ing reasons for the.petroleum
stocks', recent
and
present
market anguish: (a) They con¬
stitute
a
disproportionately.
large share of mutual fund
portfolios, (b) Supply of oil
products above ground a r e
excessive, (c) Worldwide price
competition is on the increase,
including that from the Soviet
bloc, (d) Reduction of gasoline
consumption as a result of the;
surge
of compact cars, (e)
Doubts
as

ness

their effective¬

about
a

hedge against infla¬

industry's

What's

Ahead for

Automobile Industry?

stalemate, the big news in

Never

before has the auto

the bond market and the
cent

re¬

"sloppiness": of the stock

market's-

behavior

are

re¬

Big Three

experience a

may

reduction { in

their

•

overall

.lengthened: profit margin, both as a result
holding found by the: New of the lower average price per
York Stock Exchange survey. unit
of sales. And some in¬
flected

price in about 19yj years.

uninterruptedly since 1936.

t h

STREET, S.W.I

13 ST. JAMES'S

dividend returns

|book value, and the $4.00 dividend represents about a 51% pay¬
out ratio to 1958 operating earnings;-Jfhere is a conservative 9.6
deposit ratio. The shareholder's gain m the decade through 1958
(consisting of increase in equity, plus cash dividend) was $62.80 a
share, or at the annual rate of $6.28; This rate of gain related to
the present market price of the stock, would give the investor a
Dividends have been paid

;v:

habitually keeping demand for the smaller cars;
taking prof¬ but the benefit from this may
its, "but what shall I do with —at least profit-wise—go in
the money ?'•' Probably the in¬
larger measure to the inde¬
creasing yield obtainable 4n pendent manufacturers. The

yield of about 3.23%7 The shares are now selling at 15.8 times
1958 operating earnings. In 1958, 8.9% was earned on the year-end

return of that

on a

■

the investor from

Branches

54 PARLIAMENT

Jumping

obstacle

87%; dividend 62%; and the mean price figure has slightly
than doubled. The stock is at present selling in the 122V2-

123% price area, so that the present $4.00 annual

cal pressures.

security markets was fur- industry,
or
probably any
n i s h e d
by the Treasury's other industry, harbored as
epochal offering of a four- many cross currents as does
year-and-ten-month note with the .American auto industry
a
startling 5% coupon. So now. This is, of course, due to
startling, in fact, that it im¬ the introduction (reluctantly)
mediately prompted queuing of the "compact car" by the
up by the country's real sav¬ Big Three along with all of
ers to gobble up $800 million the other
domestic manufac¬
worth. This attractive "deal," turers. On the one hand, there
supplies an answer to the is the tremendous unsatisfied

^Adjusted for stock dividends.

Exchange

retrenchment

and

the

Low

High

Exchange

Members American. Stock

Dividend
*

steel

With .the

Per Share*

Operating

Value

Book

hand,

actual introduc¬

of the

strike troubles still bound

V.\

Ten-Year

Stock Exchange.

scene,

tion, so long blithely taken for
"compact"'mod¬
granted. And (f) the $64-dolels by The Big Three, Ameri¬
lar question: will the oils ulti¬
can
has
again confounded
mately stage a • cyclical re¬
most market observers.
covery, of their fair weather
friends along with the indus¬
The Magic Fives and the
try's fortune?
Stock Market

5.5

1958 Continental Illinois carried a reserve

end of

will spill

American

tion of their

37.4

Banking House

really to be

caught in a substantial
position). In forging
ahead through the foreboding

28.5

Loans and Discounts—

seems

short

27.8%

—

now

Motors,

was

of $33.33

tags

of the

asked

non-inflationary

manufacturers,

same

$200-to-$300

are

the

same

.but at the

servatives who have ventured

employ

is being gener¬

worry

by the fact that the

coupled conventional six-cylinder cars

resounding victory

in Great Britain

ated

for

time

higher

the

most

good

than is
popular

Volume 190

small

-Number 5890

imports,

The Commercial and Financial Chronicle

with two days' transactions of 2.6

million shares in September, 1952.

Well-Acting Retailing Issues

Acting better than the mar¬
ket
during the recent weeks
•of
"uncertainty" have been
the
retailing shares. Contrib¬
uting to the relative popular¬
ity enjoyed by this branch of
the
market, justified by an
'increase of 9%
with
'Of

the

first

sales

able

month's

seven

last year.

cation that* as
.sumer

compared

This indi¬
in 1957-58, con-

spending

goods

nondur¬

will

stand

^bulwark against another de¬
pression,

considerable

million shares, contrasted

2.9

was

the Volks¬

wagen and the Renault.
^

"Thus," he said, '-while percent¬
ages reported in the various stud¬
ies—as

and

who

i§ Jo the market

why—rrt^change only slight¬

ly, figures for actual share volume
may vary greatly."
V
* ;
Margin

•:

transactions

individuals
of

public

accounted

for

(1593)

income group has

increased stead¬ 24.8% of the volume by public
the highest propor¬
ily over the past seven years, and, individuals
according to the latest study, ac-1 tion since 1952.
Men, however,
—

counts for 40%

public individuals.
,
Increased
activity
with higher incomes
dovetail

volume:—a

Almost

for

were

The

half

long-term

decline

low.

transactions

investments.

relative

margin

activity and the high level of in¬
stitutional
recent

rests

volume

findings

largely

tion.
Share

viduals

that

on
.

the

cash
/

volume
in

the

indi¬
$25,000

64—are

60%

by the public.

increasingly

for

little

(2) In terms of total institutional
intermediary volume, com¬

mercial banks and trust

reached

important

their

highest percentage

(3)

New York Stock Exchange

members

Member

and

Firms

ac¬

volume. Volume among this group
increased from about 24% in the

counted for 23.7% of total volume,

1957

compared with 21.3% in Septem¬
ber, 1958.

study to 28% at present.
Other

Other

Increased

women,

(4)

New York, New Jersey and
Pennsylvania combined now ac¬

highlights of the current

study reveal:
(1)

Highlights

who

were

count for

^ ,-•%
activity by

volume

responsible for past

smaller share of public

than

(5)

time in the
Their proportion

any

seven years.

—

Cities

;~T

that

(5.7%)

Texas

and

Detroit

also registered

(6)

Transactions

low

tentative

its

retroactive

union

felt,

number

Terms

the
ber

reflects

the

settlement.
ter

Firm

branch

With

third

tained

nearly 85% of ca¬
pacity, contra-industry favor¬
able earnings are certain to
be reported. Already favored
by analysts last year, when
the mean of its market price

Little

for

45, because of its present
expansion programs, now its
expanded plans for great in¬
creases in
capacity are keep¬

current study is based on
analysis of Member Firm ac¬
tivity which accounted for about

87%

of total volume

Business?

ing it liked at its current
price of 73.

It docs

great deal.

The Bell

mar¬

System, for instance, buys from many

small businesses.

ket

[77ie views expressed in this article
do

necessarily at any time coin¬
those of the "Chronicle"
presented as those of the
author only.J
not

cide

1958, its manufacturing and supply unit, the

with

They

Western Electric

are

New

York

Stock

Company, did business with

30,000 other firms throughout the

Nine out of ten of these suppliers

country.

Trading Transactions
Studied by N.Y.S.E.
The

than

had fewer than

500

Purchases totaled

Exchange

employees.

than $1,000,000,000.

released its Ninth Public Transac¬
tion

Study
revealing
dominantly investment

the
pre¬
character

of the market.

64%

Some
of

investment

term

study

June

sented

17%

the

3rd.

thousands

of other businesses.

hundreds

The Bell

System also helps many a small

one-day

This

increase

addition, Bell System employees spent a

large part of tlicir $3,750,000,000 wages with

of the share volume

public individuals was for longrepre¬

Sep-

over

1958.

tember,

the

time,

same

business get

trading transactions by the public
in

the

current

study—the

started and

ventions and its

(30 days or less) dropped to 9.3%
«

grow

by making its in¬

product designs available to

lowest

others

since

September, 1952.
by
institutions
(such as pension funds, invest-

reasonable terms.

Transactions

and

insurance

and

ment

intermediaries

Nearly eighty companies, for example, have

companies)

(such

com¬

been licensed to make and sell transistors and

mercial banks acting as agents for

accounted

investors)

for

of total New York Stock

22.8%Exchange

thus extend the usefulness of this

This contrasts with

volume.
of

17.5%

December, 1954 and
with a high of 24.6% in

compares

estimated

BIG

HELP

FOR

Western Electric
one

September, ®1952. "
It

low

of its

many

SMALL

BUSINESS

and

big help for

odd

lots, with
than

too.

Telephone Laboratories invention.

Company representative (left) discusses order with

small business suppliers.

Item purchased here is

There is

doubt that it has been

48,000

buy

spring used in Bell telephone

dials. Millions

are

bought

every year.

-biggest factors in the electronics boom.

total value of

$220

executed for the

million,
were
public on the day

studied.
Keith Funston, President of the
Exchange, commented in an intro¬
duction to the report, that more

than 53% of the total volume

was

accounted
uals.

for by public individ¬
Although this was slightly

lower than in

Funston

one

that

and sell orders, round lots as well
as

amazing Bell

years,

Mr.

pointed out that the

one

day's volume in the current study

BELL

TELEPHONE

this

The

was

quar¬

decline,
growing

offices

final

operations thereby main¬

total

country and abroad.

Business

Big

non-mem¬

Exchange firms and
broadening network of Mem¬

adjustment in
industry

the

Does

What

subject

(2.2%).
high

opera¬

extension

contract

for

new

share volume. Part of this

An
interesting item keep¬
ing itself out of the steel in¬
dustry's labor "mess" is
Granite City Steel Company.
It
is
the
largest company

reached

Outstanding Steel Stock

obtain

...

3%; of

switching from the vola¬
"glamour" isues has been
going on.

having been able to

broker-dealers

tile

—

(2.8%).
ber

inves¬

which has maintained

in the current study are Chi¬

ume

cago

tor

tions

r"*..

accounted

proportionately higher public vol¬

seven-year

high of 47%

December, 1954, to the present

companies

since 1952—38.8

low of 41%.

than

and

However, in¬

dividuals under 45 account for

public

$10,000

that

responsible
of the share vol¬

almost

market

founda¬
' •.

finding

years—45
for

ot'ier

support

the

middle and older

17.6%

six-year

these

with

accounted

Three-fourths of all shares bought
by
people/ and soldLby public individuals in
appears to the current study.

investors in the

ume

total

of the volume by

has declined from

SYSTEM

of the

June 3rd.

and*'Financial Chronicle

The Commercial

Thursday, October 15, 1959

(1594)
1

Outlook

The World, National

And the Role of Businessmen
President, United States Chamber of
Editor, "The Christian Science Monitor"

Commerce and
V

Business

D. Canham,*

By Erwin

ments

spending

the
could

because

increase by more than 50%

in the

policy has

foreign

special

significance for the businessman
today.
v
As perhaps it never has before,
the fate of our competitive, pri¬

is hinged
upon a successful foreign policy.
So too, indeed, is the fate of our
vate

enterprise

total

system

society.

the

skills

and

represent

valuable

most

assets

communist

with

contest

our

control

and

businessmen

our

under

resources

management

one

It will behoove us to make
certain that this asset is utilized

power.

fully

effectively

and

pos¬

sible.

much

Today,

bility of
as

attention
the possi¬

our

thaw in the cold

result

to be focused on

seems

visits

American

top
political

Soviet

and

war

between

leaders.
We
we

asking ourselves what

expect from these visits.

may

meaning do they, have for

American
And—in

light

graphic

this

departure in postwar relations be¬
tween
the East
and
West, are
there any new responsibilities for
businessmen?
Let

for

begin

an¬

Soviet behavior.

change in

quest for

our

by considering the chances

Mr. Krushchev has been here and

gone.

will
be

write

may

and-butter

letter,

whether

reveal

a breadtonly time

but

thaw

can

Some

our

people

are

the

devices

arguments

have

Briefly
arguments go

summarized, these
something like this:

practical

only

pay

lip

concentrate

tensions

can

all-out

—The
about

worried

are

China.

possible
the Soviet is looking for a West¬
ern
insurance policy against the
possible rise of Chinese power
behind its
We

own

But

these
are

fail

it.

the

horse

not

based

way

how

see

makes

some

races:

There is
the

abandoned

jective of

the

world

commitment

Sovietized,

the ob¬

commu-

chance

stand

become

Obvi¬

of the

East-West

habitual.

opportunity to compete in the
ideas.

last

August, I
the

When

inter¬

was

Russian

was

people's

hunger for information about the
be

what

seemed

hunger for something which

times, when others

earshot—in

the

were

park,

restaurant, the subway—I

the

would

be asked if I believed in God.
I

would

did, and then I

asked—

God

say

"How

has

know?"

you

done

for

you

"What

your

life?"

tioner

that the ques¬

would

give himself away
by saying, (as he usually did) "Of
course, I am an atheist, but
."
I could not help but feel that
the questions revealed an irre¬
.

pressible, spiritual yearning.
It would appear that we have
the opportunity to
display much
more

than

our

material progress.

being asked,
must be given.

are

deeper answers
Many of the seeds we are able
drop will fall into fertile soil.

Ideas

cannot

a way

for¬

of stick¬

•

are

tunities, what
new

For

through 1957,
dustrial growth has
of

Central Intel¬
the

our

years

rate

rational

deflation

and

Agency.

not

rate, which is
but

Soviet data by our

ligence

seven

in¬
at the

own

been

3.6%.

The

com¬

parison would be less favorable if
we

included

1958.

should

the

and

clear,

growth

course,

of Soviet output

productivity is not due to

intrinsic

virtures

any

Soviet

the

system.
We

seven

are

of the oppor¬

the dangers

Russian

Dangers in New Soviet Posture

&at

Soviet

First

all, I would

say,

the

military and economic program—
up to now—is concentrated in a

sion

and Indonesia.

Trading

material

zation of human and

national

for

sources

policy

economic

poses.

centrated

the

Soviet

The

acquire
products

American

has

con¬

Soviet

contrivances

such

Russian

its

industry

military

Soviet

know

not

inclusive

point

not

shun

that

such

all

sarily

suggesting that we
Russia, or

trade"with

all

trade" would

neces¬

assessed.

with

and

sellers

thought
the

has

national

economic development.
declared that this pro¬

for

plan

has

American buyers
give
sober
their responsibilities
must

interest.

We must also

will give communism the
decisive edge in the international

His

power.

prospectus

poses

the

for¬

midable task of increasing indus¬
trial production
about 80%
by
1965.

Steel

output, and

is to be
million net

production

100

115 million ton
140 million ton

our

over

Khrushchev

also

promised the
Soviet people the world's highest
standard of living by 1970.
We can, I think, write off some
of his ambitious program as little
more than wishful thinking.
For
example, the Kremlin claims that
Soviet

50%

industrial

output is now
Actually, it is not

ours.

than

thing,

the

40%.

another

For

Kremlin

believes that

our

industrial growth will be only
a

year—and that is far from

realistic.
At

the

time,

same

cannot

permit typical communist exag¬
geration to blind us to the actual
Soviet economic

progress

can

reasonably anticipate in the years
immediately ahead.
For example, Soviet production
of
coal, petroleum, natural gas
and
hydroelectric
power
was
about

1965,

45%

to 60%.

ours

expected

1958.

Nor is it unreasonable to

expect that Soviet industrial out¬
put

about
I

Soviet

the

are

map

tance to

our

whole

55%

believe

will

ours,

can

amount

by 1965.
safely calcu¬
.

late that the present rate of

Soviet
growth will decline in the future,
but unless extraordinary develop¬
ments intervene, it
is likely to
be faster than the average rate
of growth in the United States.
This can be expected even if
the Soviet doesn't hit all

pro¬

tremendous impor¬
security and our con¬

required
comes

not

For one
self-sufficient

rapid economic growth will

also provide the Kremlin with ad¬
ditional resources in the arma-

"Can

prevail in competition

with the central

planning, control

and direction of the Soviet

system
controls on our
which may imperil

without imposing
own

economy

freedoms

values

and

are

history
alone,

the

he,

answer

can

moment

American

because

nessman,

vibrant

for

that

busi¬

and
he
question.

believe the American business-:

shape

the

character

tomorrow

with

the

same

prise

imagination

man

can

and

enter¬

that

have

our

tungsten

nomic

than

half

me to
of the

needed for a jet plane
imported.
"
The less developed nations also
represent a tremendous potential
American market, and the politi¬
cal importance of those areas is
even
more
thought-compelling.
materials

these

countries

which

areas

are

bases essential to
World's
strerigth.
The

the

military
free

encompass

less
world includes 21 na¬
tions which havfe come into being
developed

since World War II.

Millions

people in Asia, Af¬

the

government
of

expense

private

enterprise freedoms.
As

form

ranks

meet

the

Soviet threat, we must be careful
to avoid weakening our private

enterprise

are

.power

hands

bauxite for mak¬

It surprised

ing aluminum.

Some

past

which

to respond, it could result in an
increasing concentration of eco¬

our

strategic

responsibility

cannot be evaded. If business fails

and 85%

that

the

industry

64%

materials

manganese,

learn

America

raw

import 100% of our natural rub¬
ber, 100% of our tin, 85% of our

Let's

structure.

believe

blunt

that

about

the

should

stay out of
place, then let us be

it.

government
the market
more

care¬

ful about inviting the government
into the market place as a means
of

gaining subsidies
special favors.

and

other

As businessmen, we
must in¬
tensify the basic strength of our
economy—and that strength is an
alloy
of
individual
integrity,
wisdom, initiative and energy. ,<
We should welcome
competi¬
tion, because there is no more
_

rica

the

and

Middle

have

East

newly

awakened from centuries
effective device to reduce costs
of
slumber.
They are* obsessed'
and
develop
more
efficient
with an urge for economic, social
methods of production.
i,1
and political progress.
We must be persistent in our
There is newly aroused dissatis¬
.

faction with

attack

poverty.

The Soviet

is energetically

ex¬

ploiting all the
rest

elements of un¬
in the less developed nations

to serve its

own

power

interests.

must

tices

all the forces and prac¬

that

tion.

tend to promote inflar
disintegration of dollar

value

could

easily; touch off a
of everything we
have been working for.

disintegration

recognize that
the
of the communist eco¬
nomic offensive do not lie in the

range

size of that offensive.

responsiblities. These responsibil¬

dangers

1954, the communist bloc
has agreed to loan about $1.6 bil¬
lion dollars for economic develop¬
to

15%

our

of this has been

stake

extended

for

social

have

and

wide

national
we

want

enterprise system to become

Credits

businessmen

ities must be fulfilled if

nations.

underdeveloped

delivered.

effective.
in

business
the

have

solution

vital
our

national

aid program.

social,
economic
and
political problems. We must be¬
come
more
personally involved
in those problems.
We must reappraise our private

comparisons have little
meaning, because the communist

support of health, education and
welfare needs. We must remem-

military

potatoes,

prevail?"

American

10% of

from other free nations. We

million.

battle
funda¬

question:

"Can

who have been

living

economic

We must ask ourselves

transformed

About 10 to

bread and beets.

being, waged

This

trade-and-aid

are

in the Russian standard of
seem

handful of decades.

ment

will

economic

our

fields.

thing,
entity.

also expect to -see a moderate rise

progress

add

businessman

American

tinued economic .progress.

its tar¬

living.
like a

the

threat

in the front lines of the cold war,
because the war is increasingly

Programs

give"sober thought

directed at the less devel¬
oped nations.
These
segments of the global

A crucial

capacity.

The

the

grams

economic,

trying to preserve?"

Trade-Aid

gram

with

Front Line

ramifications

to a challenge to

suggesting that we
with caution.
The
implications of specific

fully

even

non-communist

system.
'

care¬

na¬

device

are
unable
to
satisfy
demand and must give
communist-type institu¬

communist

proceed

trade transactions should be

aid,

these

mental

handy

propagandists.

Business From
All

be harmful to our interests.

But

developed
a

tions.

an¬

else

one

either.

does
I

the

this

way

might strengthen their power
military and industrial?
I

political

ambitious seven-year

popular

—both

general the
Soviet has ap¬
palling inefficiencies. This is well
illustrated by its inability to cope

countries

launched

communist

sell them what they
though it means sell¬
ing our hard-won experience in
the
bargain?
Even
though
it
means that our patent rights may
not
be respected?
Even though

swer.

They blandly state that

want—even

less

This

communistic

for

Shall

blamed-on local national

are

and

prototypes. That ambi¬
tion poses an interesting question:

serve

Mistakes in the Soviet economic

buy Whole American factories to

must

housing crisis.
Khrushchev, as you know,

the communist example.

offensive

plastics

imag¬

ment and maturity is provided

tech¬

petro-. leaders.
chemical industries would like to

talent, its
results have been impressive. But

its

muscle

step

grievances,

real

injustices.
all,
it " is

tions

The

frustrations,

%
•
■
designed to
prove
to less developed nations
that the key to economic develop¬

power.

and

strate¬

Above

ma¬

add

program

revolts against

ined

number

chine tools and complicated

nical

and

are

desperately

Soviet

The

bitions,

area

which

wants

and

money

involved.
to

Soviets

trading

offensive

this

re¬

purr

With

also

gically and tactically coordinated
with political, diplomatic, psycho¬
logical and military techniques
for conducting foreign relations.
It is geared to exploit local am¬

offensive.

There

such

The word for it is

selective.

communist

the

countries

Egypt, Syria, Iraq, Afghanistan,
India, Ceylon, Burma, Cambodia

economy.

critical

few

Finally, continued Soviet eco¬
nomic
growth will provide the
wherewithal to push the expan¬

entirely safe in
assuming
that
Soviet economic
growth is due to ruthless mobili¬

This

Soviet posture?

the

without increas¬
burden on the

years

relative

the

can

In the next seven years we can
some

Russians may be launching a new
changed is not the -'peace offensive,"
designed
to
motivating the Soviet re¬ dull the sharp edge of our alert¬

ing

full-course dinner to the millions

system.

has

gets.

then—

If these*

the

altogether

Facts have

ing.
Now

ours.

call truth.

Several
out

also

and

reconstruction

tons—against

also make the most of

can

West

Soviet

larger,

pushed

it might possibly
military truce which

realm

official

our

But

result

the past
continues

This

9V2%.

our

freedom.

settlement

struggle.

have

in¬

cannot risk
have

ously, this will not bring about
final

gotten.

leaders

true, however,
policy has changed.
purpose

horse

principles of

It is

What

convincing evidence

Soviet

can

convince

strength, but with

our

determination

think

people bet

because

ternational communism

nized

Deeper questions

has such nice brown eyes.

that

some

arguments—

thinking.

count

frontiers.

there,

they

that

wishful

hope

may

.substance
and

eastern

which is ripe for

that

war.

It seemed to

Russians

Red

self-

impress their leaders not only

with

production.

goods

old and

chance

Soviet

the

consumer-

balance

have

would

stability, and

has

service to Marxian doctrine.
—Moscow needs

States

collapse.

who

men

relaxation

have

not

satisfied society

—Communism in Russia is los¬

ing its early momentum and dy¬
namism. Soviet leaders today are

good

been drained of its
They should know that

virility.

ested

reasons.

means

Russia

external

material

the United

that

expansive

of the- USSR is
being restrained for both internal

labor-

could implant in their

minds

been advanced to suggest that the
power

and

would

comforts.

the

variety

and

development

saving

the

Wherever

been

emphasis we ap¬
to have placed on leisure—

pear

very

optimistic.

miscon¬

the

could

expected.

Soviet

the

some

still

rapid than

rate

that

ceptions about America.
Soviet leaders may have

to
swers

number

opportunities are not en¬
tirely
clear-cut.
But they
are
worth appraisal.
The impact of interchanges is
unlikely to be immediately ap¬
parent.
But, for example, interchanges
gives us at least a chance to cor¬

business?

have

with

but

somewhat

opportunities.

misled

nual

The

rect

years,

Such contacts ac¬

gain.

tually present us

thing if

are

What

that

answer

military

Its

of industrialization

moderated

been

annual

would

grown

Through most of the 1950's So¬
viet industry has grown at an an¬

general.
I

and imagination.

American

much

important, the vitality
and success of foreign policy rest
on
our
domestic strength, vigor
Equally

The

has

of 30 years.

span

pace

few

if this means that
gain from the
and
from
the
somewhat
liberal East-West contacts

visits

Union

Soviet

has

have nothing to

Soviet's

into

headlong

You may ask
we

feeling their oats.

in the short

designed

gime, but the techniques
to achieve this purpose.

West, and they have made no
secret about this offensive.
They

relatively backward posi¬
the second largest in¬
dustrialized economy in the world

and reject government
controls "which may imperil the freedoms and values we are trying
to preserve." Other subjects discussed deal with trade with Russia,
our relationship with less developed
countries, and the warp and
woof relationship of business interests and national interests in the
light of today's international crisis.
Our

the

tion

past providing they act promptly

the

Central

According to
Intelligence Agency,

race.

from

and what their responsibilities are, after assessing the opportunities
of and the dangers in the new Soviet posture. Mr. Canham is certain
businessmen can succeed with the same imagination and enterprise

January thaw.

Secondly, the Soviets may have
to give
a
new push
to
their economic offensive against

The

war,"

the front line in the economic "cold

have

decided

are

well known editor, Mr. Canham advises

spokesman and

businessmen they are on

certainly must not let
ourselves indulge in the delight¬
ful illusion that spring has come

ness.

These

aid

figures

the total of
But such

total

our

are
own

well

$800

below

ber

that

any

unfilled

which

vacuum

his committee had uncovered

private
.enterprise
automatically attracts government
intervention.
The

;

businessman

become
all

levels

and

local,

—

county,

politics at

state
BY

national.

CARLISLE

make

must

voice

his

Ln
anI

heard
:

—not

only

matters

domestic issues but

affecting

affairs.
is

We have

not

too

embrace the
Let

past

well-being.

forget-that
of
capitalism

less

aware

this and

the

largely

voluntary
this

that

fact

was

action.

transformation

books—and

busi¬

many

nessmen.

concept that

right

the

belief

with

ligations.

his

use

likes,

evolved

manager is.not

only a trustee for
ownership but a trustee for
society as a whole.
the

that
A

state

all

islation

Carlisle

ported

Bargeron

tame

win

greatly

Rockfeller

over

least

five

The

Hampshire

condidacy.
the first state

will

number of business leaders under¬

that

stand

ceived

that

followed.

fact.

•

and

warp

fabric.

They

And

pace.

the

are

same

setting
being

are

they

woof

are

state

back

"An
the

the

world,
hopeful.

address

Annual

Gas

Mr.

Convention

Association,

there

Eisenhower

impetus

and

assistant

came

Canham
of

the

Chicago.

before

American

III.,

Oct.

Adams.

Adams

man

their guest speaker at their second
fall meeting at The Chicago Bar

Association. Raymond
who is

C. L. Greer

partner of Duff, Ander¬

Clark

son

and

Automobile

their

stocks.

his

hard

Demo¬

Goodbody Office

the

that it

fact

the

question arises

re-

was

Senate

to the House.

over

to whether

...

story is pretty

sharing plans for corporations

Department

ing

William J.

■

Reed, Lear Branch
WASHINGTON, Pa.

—

Reed, Lear

payroll

deputy

savings

Bassior resigned

director

programs,
as

Mr.

zone manager

Neimejer.
■
'
1 homson, McKinnon Office

major investment manage- INDIANAPOLIS, Ind. —Thomson
iirm to accept the position & McKinnon has opened an office

Wlth Darius.

6101

North

Keystone

Avenue

under the management of J. Floyd

•

S. H. Bennett Co.

King.

three

PATERSON, N. J—S. H. Bennett
c0., Inc. has been formed with
offices

His younger brother, who

who

profit-

office

Boulevard,

Eggleton, Jr.

mutual fund

programming

Atlantic

under the direction

department. Mr. Bassior will spein

East

now

does

not shun the limelight, made two

run

of its

2745

Fla.—Good-

& Co. has opened a branch office
committee well as estate planning for in- in ihe Washington Trust Building
was
pretty dividuals. A former U. S. Treasury under the management of William,

guidance

tame

George Bassior has joined Darius
Inc., 90 Broad Street, as general
manager

BEACH,

body & Co. has opened

Darius Fund Dept.

sales

L^Stmck/rhe

Milwaukee Company, Chairman,

POMPANO

Bassior to Head

cialize

re-

man

the

appearances

his audience

the

TV, telloutrages

engage

Officers

64/Hamilton

securities

Street

business.

Sidney H. Bennett,
President
and
Treasurer,
and
Jeanne L. Primack, Secretary.
are

W;..

A,.I,

With A. L. Aub

(Special to the financial chronicle)

CINCINNATI,
Kashdan
staff

has
A.

Ohio
been
Aub

—

Bernard

added
&

the

Co., Fifth

Bank Building.

President,
assistant,

exercised

than any
before in that capacity.

Greer

easterner, coming originally
from
New
Hampshire. He is a
"graduate of Babson Institute and
lieutenant

•was

(j.g.)

in the Navy
during World War II. His business
experience includes four
the

office

New

York

General
the

Donner, who is
officer.

tive
with

Mr.

years

Motors

staff

chief

now

Greer

in
in

Mr.

execu¬

has

been

Duff, Anderson & Clark for

six

one-half

and

ryears

lowed

special

concentrates

bile

has

fol¬

various industries

worked
now

three

years,

partner.

and

projects,
the

before

been
delegated
with /so
authority.
/•>•
The second striking thing was

much

but

automo¬

„

Massachusetts'
John

Kennedy.

endorsed

for

many cars

the U.

the

-cover.

How

companies—
out?

come

questions
.

race?

will be sold? How will

automobile

their stocks

and

1960

fair

organized

him of being

upon

labor

labor's candi¬

organized labor by

means.

any

Two

nationally known officials of
the Federation roundly denounced
him at

weeks

meeting several
for his part in' the
recently
passed
by

ago

labor

national

bill

Congress. He is in fact put in the
position of having to tell labor I
groups that he tried his best to
soften up the bill which -he un-

doubtedly did.

set

the

country

well

voters

with

while

ganized

the

labor,

the

mood

majority

doubtful

except

chusetts,

enthusiastically
explanation.

his

strong labor bill this doesn't

will .^■Kennedy

ganized

young

the

date. Yet elsewhere Kennedy does
not have the - unanimous support

These

Greer

Mr.

him.

Massachusetts

With

the

has taken him to their bosoms and
;,
to this extent has put the curse

for

favorites

boy of that state. The State ••
Federation of Labor- meeting
in"
annual convention wholeheartedly

industry.

Big cars—small cars—U. S. cars
foreign cars — which are the

devotion

haired

expert

Mr.

are

/necessarily

wel1 known-

Washington

ever

the

In fact,
the capacity/itself was
unique in that no one has \ever

Chicago Inv. Women Hear

—

power

CHICAGO, 111. — On Wednesday
evening, Oct. 21, The Investment
Women of Chicago will have as

the

Sherman

1959.

was

first

1952

Sherman

nothing

start:

that

his

head

re-

lea„C!ers ™W'.

had charae of his affairs later be-

all

have

committee

amended

iParierC

Presidential

next year

the

accumulating theSodety, George

have

get

cratic Presidential nomination.

was

ball

his

growing

leg-

his purpose in seizing the
bring out this weak legisiation.
That
is
the
impression
be would give the organized labor

it may well deter Rockefeller
announcing

the

the' legislation

before it went

was

his
so

Labor

the kind

was

out

under

today poUs show that

primary
and the winner of that

interests

out

Admittedly

hold,

handiwork.

candi-

state

Senate

the

,,.

New

that

ported

one

this mood of the voters keeps

up,

the

driver's seat and

that

legislation and, by
his having also been a
,

Committee^

ing the Presi¬

national

virtue

member

Nixon regard¬
dential

grabbed the ball, ahead
who wanted the

sponsorthe

success.

travel

of other senators

tremen¬

dous

business

and

But

re¬

Mr..

made

from

.The evidence is
will

And

onf;
If

.came up, John Ken-

New

light of today's international
crisis, we
must
recognize
that
interests

legislation

Hampshire

Reservations should be made
through the Milwaukee Chapter of

younger brother,
Kennedy

Nixon would

business

ex-

that

social

modern

the

think

row

dates. As of

ob¬

would

when the question of writing new

that

Nixon

was a

You

sit silent and simply cast his vote,

trip

headed up

who

man

posure. /

con¬

cent

+v??efif"

CHICAGO, 111. - The Investment
Analysts Society of Chicago will
hoi^ a luncheon meeting Oct. 15th
at the Midland Hotel- ^mes Bates,
Stein, Roe & Farnham, and William Gray> Harris Trust & Savings

which he urged that the Bank, will report to the group on
Congress be worked over. The re- this year's Beloit Seminar.
suit was a bill that John Kennedy
A
fwholly unexpected and could not r,
k
rnrnnmtinn
at
head of£- H was a bad piece of Wisconsin will hp hpiri
ivr™/
cooperation on the part of his vvlsconsin' Wlil De held on Nov.
10th.

nedy would have been content to

ownership

certain

The

property

has

that

owner

win

would

S Up

Presi¬

any

hears

old

Nixon

easily

dential

Much

unaware

speed

carries

feller

has

outstripped the perception of
.many historians; many authors of

Rocke¬

our

has

exactly

•

over

test

The

has

that

section.

result

into

transformation

The

the

One

the

business

brother, Robert Kennedy, was the
general counsel for the committee,

century.

the

things, politically, stand out.

£hmiJe

Andvot.

v^nicago /analysts
To Hold Meeting

•

This writer has just returned from
a
vacation in New England and

transformation

half

world

oven

self-interests

common

system
undergone
a
the

order.

never

total

the

big

heritage of broadening

immediate

;

two

This

our

foreign
'■
/-'

our

PKiVarr^

they wanted to
abuses,
they
should

^pnhenw0prsfe

for Mr

BARGERON

•

and

Ziill ^eir Congressmen and
T^m+v.n ^ S
~
rrh1S ^eydld with a ven-

.Ahead of the News

them

these

end

also

must

active

urging

his

labor

appeals
is

now

of
or¬

Massa¬
accepts
to

or¬

attacking

the

Taft-Hartley act. This is sur¬
prising because he was one of the

Joins Hooker & Fay

most

(Special to The Financial Chronicle)

SAN FRANCISCO, Calif.—Robert
-B,

Lewis

Hooker

has

joined

Fay,

the

staff

221

Montgomery
Street, members of the New York
Pacific

and

Coast

Stock

Ex¬

changes.

diligent
workers
in
the
vineyards in the passage of this
act. He was serving his first term
in Congress and was a member
of

the

House

Labor

Committee.

His

penetrating questions embar¬
rassed many a labor leader who

appeared

testify

against

any

legislation. As

Bankers Sees, Inc. Formed

Dick

(Special to The Financial Chronicle)

LEXINGTON, Ky.

—

Bankers Se¬

Incorporated,

curities,

has

been

formed with offices in the Central
Bank

Building,

securities

business.

engage

Officers

are

J. C.

Buckley, Jr., President; J. C.
Buckley, Sr., Vice-President, and

Buckley,

Secretary

Treasurer.

was

and

tion
It

this

Nixon
as

new

has

a matter of fact, it
capacity that he and

both

attracted

members of

always been

atten¬

•

THE
served by

BLOSSOMING'ST". LOUIS AREA

Laclede Gas Company is spreading out in all directions these days. New urban expressways, vast metropolitan

developments

and

suburban

subdivisions

reflect

industrial expansion.

Laclede Gas
increase the

healthy population increase—20 per cent since

Company is blossoming, too

working to match the community's growth with resourceful planning to
successful development of underground

supply and availability of gas to all of its customers. Through the

and reinforcement of its system and the streamlining of all phases of its operation.
avenue of action in its effort to meet the requirements of growing St.- Louis.
•
*

storage, the steady expansion
Laclede is overlooking no

Congress.
source

wonder

to this writer why young
Kennedy wanted to become - so
closely identified with new labor
legislation. He served on the Mc-

Clellan
revealed

rackets
all

corruption,

and

committee
the

his

which

scandals

and

younger

1950—and

LACLEDE
SAINT

LOUIS,

GAS
MISSOURI

COMPANY

Thursday, October 15, 1959

Financial Chronicle v

The Commercial and

(1596)

Myron

Rudolph
-Robert
•Glen

•

Willard

■

Butt

Fuerbacher-

Miller

Co,

Brent on

Leslie

NATIONAL

ASSOCIATION

SECURITY TRADERS

Nov.

Club

and

Hotel

Raton

26th Annual Convention at Boca
1-5, 1959, has been announced as

NSTA

the

for

program

John

6:30

p.m.

Anton

E'.* Homsey

James

Allan

Monday, November 2nd

•

8:30

..Breakfast

Past Officers

a.m.

2:30

p.m.
p.m.

6:30

p.m.

Cocktails—Cabana Club

8:00

p.m.

Steak

9:30

Tuesday, November 3rd
8:30
9:30

Breakfast for Presidents of
Golf Tournament, Tennis,

a.m.
a.m.

Fishing

Sea

Deep

and all Sports
2.30

Trip

p.m.

for Ladies

7:00

p.m.
p.m.

Antonio,

Texas

Investment

Corp.

San

Antonio,

Texas

Frazier

National
A
A

Lee,

York,

Lynchburg,

York,

Neuberger.A

Loewcr

York,

New
New

York,

Berman

Mr.

Mrs.

Dinner

Coleman Andrews

Chairman of the Board,

and

President

Bankers Life Insurance Corp.,
Richmond, Va.
Fidelity

■

...

Style Show for Ladies and

and

Luncheon

p.m.

8:30

p.m.

There

Presentation of Officers

Dinner and

much

available:

and

Hydro
in

addition

the

Tournament the following sport facilities

Bowling-on-the-Green,

Badminton,

Achery,

Cro¬

quet, Deep Sea Fishing, Horse Shoe Pitching, Ping Pong, Shuffleboard and Water Skiing.

Daytime dress at Boca Raton is informal.

Sports attire, in¬
shorts, is acceptable in all public

cluding knee length Bermuda
until 6 p.m.

areas

increase

After 6 p.m. gentlemen are required to wear jackets and ties
lobby, all bars and dining room.
During the Convention period warm weather is to be expected
and summer clothing will be comfortable. The evenings may be
ceol even though the days are warm and light wraps are suggested.

the

for

Convention

have

been

re¬

ceived from:
Randall

Taylor, Rogers A-

Mackessy

Abbott,

G.
L.

Wm.

Beebe

Soren

Snodgrass

Golkin,

"Charles

"Samuel

Kennedy

Securities

Bomback

and

Pedrick,

Jr.

Arnold

"Clifford

"William
"John

Thompson

"Homer

Remington

Bonham

"William

*N il

Roberts, Jr.

Bateman

"Joseph

Zingraf
Billings

Arthur

Weigner
Foster

Warren

Yarnall,

Biddle

Howardi

Weil,

Curr

Sellers,
T.

Pacijic

Young

Lehman

•Charles

"Charles

"Carl

Robert

Thompson
Scheuer

Swenson

P^ Howard

Lester

Greenwald

Goldstein

Morris

"Arthur
"Peter

•Paul

I.
J.

Co.

Merrill

San

Sherrerd

1""

Eustis

<fc

Co.

Weil,

Levien,

Denis

The

Co.

Hammell

First

•George

Securities

Dickson

Orleans,

York,

Co.

Orleans,

York,

Inc.

other

nations,

Just

will

oil

is,

be,

con¬

that future

manner

now.

first

Helium
does

one

insure

this

that

measures

natural gas

problem

That

companies.

takes

Nation

to conserve it sup¬

soon

plies of helium gas.
natural
in

limited

regard for the possible place
of nuclear energy in the total. But
the
gross
relationships are-^not

far

found

fields.

gas

sources

only

few

natural

important

No
it has

well

you

new

discovered

been

likely to change much, for nuclear
power is not now expected to be
a
major contributor as early as

since

1975.

ergy and missile programs and
other industries.

lium
for

According to estimates made by
Gas

the

natural !'

industry expects to add about

gas
12

Association,

million

customers

will

require

investment

one

tion's

come

The

demand

mounting

for

helium

our

en¬

helium

conservation

lost

na¬

Consumption
of
energy is also a measure of tech¬
nological progress, for it likewise,
reflects
our
ability to produce
more with less resource expendi¬

Cliffside

Government-owned
field

Amarillo,

near

gas

Texas.

Under the proposed legislation,
conscious private industry would be given
civilization, the dreams and hopes 'an opportunity to participate in
that we today share for the next the program of financing, build¬
100
years
are
big dreams and ing, and operating the plants.
hopes, indeed. Yet l am inclined ~~Tfiis%s~ln
Eisenhower Administration's
to feel that if we were privileged
to live in the
2050's, we would teamwork policy, namely, that the
look back at our anticipations of Federal Government should per¬

York,

our

PMladelnhia, Pa.
Bridgeport, Conn.

energy

the

1950's

modest

find

and

had

actually
ootimism

basis of

our

fuel

very

happened.
is justified

hand-cut
wood

To
on

me,

the

rate of progress over

the last 100 years.
To
oneliving
when

them

by comparison with what

Wis.

111.

Charlotte,

Within

form
or

State

will

supplied

the

1850's,

hand-fired

most

of. our

not

the

favorable

only those

necessary

which
and

private industry
local governments

.or

cannot

themselves
In

and

alone

functions

effectively

the

Congress

Federal

Power

almost impos¬

its hands under exist¬
of

enactment

legisla¬

remedy the situation is a
.problenfi without promise of solu¬
tion until

ests

reasonable method

some

is found

reconciling the inter¬

suppliers

and

producers

with those of

It is not

consumers.

possible, in my opinion, to reach
any other conclusion after and ex¬
amination of the most recent Con¬

gressional
deliberations - to this
subject.
If something constructive is to

accomplished, a high order of
statesmanship will be required,
both inside the Government and

in the industry.

The

acts

on the suggested helium
legislation, as I have repeatedly
urged it to do, we hope that pri¬

is in-

industry

gas

en¬

viable position because
its

wants

take

product.

that the public will
continuing and increasing
in

interest

that

the public
But
this, in

means
a

the

and

business

gas

automatically

means

con¬

tinued

regulatory interest in the
business by all three-Lranches

gas

the

Government.

Federal

the sincere hope

of many,

including myself, that members of
the natural gas

lead

legislation
tionship

industry -will take

appropriate

seeking
which

realistic

will

insure a
rela¬

basis for

between

dustry and at the

the

Federal

the

Commission

the

and

in¬

time pro¬

same

tect the interests of the ♦consumers

natural

gas.

Competitors
The

third

would
not

Energy'Field

-which

problem
to

mention

-I

concerns

only the natural gas industry,

but

the

energy

competitor

matter

field,

industries

in
that

and,.'.for

entire

our

economic

system.
I

our

one

of those who

think of

governmental system- as pro¬

viding

equal

opportunity

according

to
his

ability and effort. This is not en¬
forced equality, but a system in
which a person may rise or fall,
depending upon his merits.
To me, this principle also ap¬
plies to our economic system. Our
nation's economv is a vastly com¬
plicated

undertake.

event

the

Power
pro¬

which the Eisenhower Ad¬
ministration has proposed to Con¬
gress to remedy this situation calls
for construction of up to 12 new
extraction plants to be located on
helium
bearing
gas
pipelines.
After extraction, the helium would
be
stored
underground
in
the

growth.

with

•

the

Yet

the

now

market with commercially

natural gas and
atmosphere.

that

ing law.

have

pace

keep

It is generally rec¬

Commission has

rapidly

the Nation's atomic

he¬

gram

consumption of
to be recognized

of the best indices of

the

In recent years,

has

been

most

Yet

The

produced

expansion which
additional
capital
the order of $32

billion.

energy

has

use

goes to

the

during

1953.

industry.

ognized

level

Federal

unable

itself,
know, is
resource,
thus

Helium,

out

the

been

Gas

involve,

least indirectly, many

with¬

made

for¬

look

can

abundant

Conserving

and natural gas liquids
providing the remainder.
is

however,

the

The

dro power

projection

with

abundant future.

how

facing

used; natural gas and coal,
one-fourth each; with hy¬

This

some

will depend
in which we
solve certain problems which arc

;•

would

find

can

than world wars
differences

their

settle

ward to

provide two-fifths of the

such

Mich.

Co., Inc.

Co.,

Ga.

New

CMc0"o,
A

La.

York,

Atlanta,

New

Co.

Bros.

Fla.

York,

Milwaukee,

Chicago
R.

ralif.

Jacksonville,
Ghieager - HI.

Detroit,

Co.

Iiincks

York,

New

Co.

•Elmer

Ltiley A

Ohio

New

Co.

Tornie-^ultzman

Dulin

H'lls,

New

"pace

Villerc

Marshall

---

New

Co.

weld

Labouisse,

Lane,

Moreland

Welsh, .Tr.
A. Dockham

Conn.

New

Greenwald

Kcrnyood
Johnson,

that

the

esses

tion

ture.

New

Co.

Torpie

York,

Calif.

Pa.

Haven,

Brv

Tegtmeyer & Co*

Koch,

Francisco,

Cincinnati,

Co.

Walker

Howard,

St.

New

Co.

Pitfield

II.

New

;

Reeves

Wm.

Philadelphia,

Meeds

Pierce, Carris^n. Wulb°m, Inc.
G.

Mich.

Lynch, Pierce, Fenner

f mi

Daniel
W.

Youngbery
A

Rapids,

York,
York,

New York, N. Y.
Cleveland, Ohio

Co.

•Walter

Montgomery, Ala.
Baltimore, Md.
Seattle, Wash.

New

•James

•Henry

La.

Orleans,

Grand

Bissell A

Moreland
Jr.

Co., Inc.

Co.

Laird.

Mollov

"Otto

Keenan

Bonham
A

next 15 years—an

Bros.

Friedricus

•Jack

Pa.

New

Co.

Russell

Geo.

FitzGerald

Cowen

.1.

Philadelphia,

New

Butcher

Bourbcau

Northwest

Stone

Staib

Co.

Ala.

other way

some

here, again, one must take
the amazing rate of
growth. On the record, legislative,
administrative, and judicial proc¬

power

plants.

Assuming nations

Re¬

the

—

energy

Doe

Brown

Hogarth
M. Waldron

A
Co.

Williams

McAtec

•John

York,

St.

Co.
Cincinnati, Ohio
Remington, Inc.Philadelphia, Pa.
Thompson, Inc.
Boston, Mass.

New

generating

1955,

Colo.

Denver,

Labouissc,

Eustis

Geo.

"Edward

Hess, Grant A

Ralph

R.
"Stanley

Co.

Inc.

A Leach

Agce

"James

"Guy

Birmingnam,

Charles

Angeles, Calif.
Nashville, Tenn.

Petersburg, Fla.
Philadelphia, Pa.

Friedrichs

-"Henry

Corp.

Hough,

111.

York,

Los

Sterne.

Loc

"Parks

New

Co.

Janney, Dulles A Ea ties, Inc.

Wallingford

*Aionzo

Beil

Nielsen

Chicago,

Paine

Peters, Writer & Christensen

Golkin

"Saul

Tracy

Stoats

uitable

Button

"Charles

Proctor

analysis

now

Reservations

mean

over

blanket of

atomic

small

some

upon

about

Frank

engage

account

sible job on

and

different rates of
growth projected for the several
components, the overall pattern
of energy use by source in. 1975
is expected to be much the same

the Cabana Club.

James

But

into

already we have atomic subma¬
rines, and atomic merchant ship,

is expected to
two-thirds
in
this

Despite

tinue

Ralph

the

down.

the

power

period.

Bathing suits and brief shorts must not .be worn in hotel
lobby or on Cabana buses. This also applies to the dining area at

Additional

■

some

difficult

Only 20 years ago the idea
of practical utilization of atomic
energy was incomprehensible, and

85%; and for coal, 70%.

Dancing

Raton

Boca

Tennis

Golf and

usual

that

fact

sible.

For crude oil the increase would

Entertainment

with

grids and a net work of
pipelines over the United States
would
have
been
incomprehen¬

Future.

for the

sources

Reception

this would
110%

according to the

Gentlemen—Cabana Club
7:00

increase

requirements,

energy

now.

uses

For natural gas

Meeting

of Officers

Election

1:00

■

planning and the decisions
go with it, progress is less
certainly its rate is slowed

sure;

power

figures.

11C% Increase of Natural Gas

National Committee

a.m.

than

Thursday, November 5th
9:30

these

Thus,
the professional concensus is that
by f975 the United States will be
using 85% again as much energy
as
in 1955, and some 75% more

Speaker:

with

ment

President, Arvida Corporation
p.m.

such

—Today and Tomorrow
Continued from page one

Weir, Sr.

Host: Mr. Milton N.

8:00

span

difficulties are not en¬
tirely of the industry's own mak¬
ing. For example, the uncertain¬
ties surrounding Federal regula¬
tion of the natural gas industry
are
great
indeed.
Uncertainty

Va.

New

King <& Co.

Va.

Singer, Bean a Mackie. Inc.

short

present

Fla.

St. Petersburg,

Inc.

The Natural Gas Industry

Demonstration for the

Cocktails

p.m.

within

■•■■•'.-..-V

solved.

New

Lynchburg,

go hand in hand with achieving
full
maturity
have yet
to
be

New

Co.

Bank

A Co.
Lee, Inc.

Charles

Angeles,

New

Mason

Mackie

Denotes

makes

/•;•...
Luncheon

p.m.

6:00

Sari

Mason

Burton

Speaker: Mr. William C.- Sullivan, F.B.I.
"Communism, ^Commerce and Commitment"

•Lee

Calif.

Corp.

Co.

Regulation

long-range planning, and without

Flower Arrangement

a.m.

1:00

"L.

Investment

Goodbudy

Lee

Ladies

"Joe

York,

New

Dinner

10:00

"T.

Co.

Wednesday, November 4th

are

Chicago, 111. •
New York, N.

Company

Hammill A

Lo^

Grace

Robert

Cocktails

8.30

Illinois

Laurence

"Robert H, King

Inland Waterway to Fort Lauderdale

/Y.

Asiel

Mason

Muir

Adams

"Burton

York,

Houston, Texas

y./

Muir

Frazicr

Aubrey L.

York,

New

Phillips Investment Co.

Wagenseller A Durst, inc.

Heaney

Charles

Affiliates

New

Boston, Corp.

Shearson,

Douglas Muir
Paul jacoby
*

Albert

Craigmyle Pinney A Co.

Suminerell

Laurence

Mass.

Cot

exception.

Let us say that the gas indus¬
try's rapid coming of age lias been
accompanied by growing painssome of them pretty severe.
And
it is safe to say that there are still
some
aches and pains ahead be¬
cause many of the problems that

Mass.

Boston,

not

problems, I believe,
consequence of phenomenal

growth

Pa.

Boston,

The

<•' '

Forbes

Guiton
E.

Pittsburgh,

Richards A Co.
Homsey & Cx>.
Maguire A Co.

Muir

"D.

are

\*>

Allen

•

Mrs.

Water Show

p.m.

».

First

Rahn

"Donald

Fry—Cabana Club

Mo.

York,

Weathers'ton

Raymond C.
-Jos.

"E.

111.

Louis,

New

duPont

Bulkley

Fred

Club

Municipal Cdmmittee Meeting—Cabana
National Committee Meeting

3:30

Kay
•

Maguire

Lopato

Louis

John

■

Chicago,
St;

Inc.

industry

gas

Some of the

years.
Parker

Sheldon

-H.

certainly

Uncertainty

Co.

/■ <;•'
Kidder A? Co.,

natural

Conn.
Ga.

Kilner

Geo.

Dinner

O'Rourke

Barnes

President's Reception

p.m.

8:00

Hartford,
Atlanta,

Inc.

Cahill

Thus,

Registration

■•'"

A" Co.

brand

most

Robinson-Hitmphrey

White A. Co.

White

Richard

Sunday, November 1st

./.

O'Rourke

"Julian

Noon

The

Co.,

follows:

12:00

Putnam

Jolley

Calif.

Francisco,

San

without their
of problems,

are

special
the

and

Wis.

Milwaukee,

Co.

that

•%

;

economy

own

Ohio

111.

Chicago,

Co.

;•;;'

under

and

Toward

Secondly, few industries within
our

Cincinnati.

Bank

Buird

Strauss

.1.

Howard

"Aaron -Cook
•Lex

The

Robert

Rupple

eration.:

Pa.

National

time

terms.

end, we invite interest and coop¬

Conn.

Philadelphia,

reasonable

Union

HeUnerdinger
First

Sachnbffv

-"Samuel

ingness
in

Md.

Baltimore,

industry will indicate a will¬
and' capacity to perform

vate

Ohio

Haven,

New

Co.

Walter, .Woody

•

A-

Co.

Dillon,

Securities

Cleveland,

Co.

Scranion

Eastman
r

Mead,

■

John

Byllesby A• Co.
A Co.,

Becker

Chas.

Rice

Inc.

Merrill. Turben

George

Leonard J.

Bridgeport, Conn.
Bridgeport, ConnChicago. 111.
Chicago, III.
Chicago, 111.

Inc.

Co.,

Harry J, Gawne ; ;•
II. Angelos

Notes

Co.,

<1-

II.

Ma rr;.

Bros.

Weeden_A Co.

'•

Darller

Bros.

Uinclts

Williams

La wrence

NSTA

Iiincks

Gordon
Knablein

bind
most

and
into

the

dynamic

thing.

strings

-would

pulled from Washington,
seem

think

strait jacket where

would

as some
a

good

Volume

190

Number 5890..

.The Commercial and Financial Chronicle

(1597)

thing,

eould

initiative

serve

stifle

destroy
flexibility which is

the climate of
so

only

inevitably

and

essential if individual initiative

to operate.

the

which

use

become
In

producers

free

the

all

the

world's

the

"An
fere

insure

Gas

natural

gas

relation, to

oil,

ergy yet to be

Annual

Secretary

Convention

Association,

Seatou

the

Chicago,

The

fact

that

competition

there

the

By Roger W. Babson

intense

Oct.

Financial

now

touring

Europe

predicts

San Francisco Analysis
To Hold Forum

Coast

Investment

held abroad with representatives of U.
added

doing

The

—

Pacific
at

asso¬

Last

night I sat in the lounge of
the Grand Hotel with
representa¬
tives of prominent American cor¬
porations who were here in the

/' 4"

•..beautiful: city

national

economic

strength. But it is not the
role

out

"freeze"'

proper

government

our

carve

portion

the

total energy market for each com¬

peting fuel.
I

cannot believe

appropriate

that

just

would

for; the

government to distort the picture

by preventing the functioning of
normal

lieve

economic

the

forces.

consumption

be¬

fuels

W.-; Sprinkel,Harris Trust and Savings Bank,
Chicago, will be speaker on "Pros¬
pects for General Business and"

and

such

factors

relative

costs

specific locations, efficiency of

dependability of s
cleanliness, convenience,

use,

control—in
of

short,

of
combination

and

cost

the

delivered

ease

preference

consumer

per

u p p

burner.

Corporation,
Stevenson, Inter¬

But

speakers

Einzig,
San

Federal

Francisco,

will

Reserve

who

Bank

will

Russel

Criteria

engage

Selection:
Dean

Kent,

for

Bank

try

from

energy,

"The

what¬

will

Stock

that

source,

get—and

we can

concerns
the conservation,
development, and wise use of all

cipal

natural
-

resources.

the

Over

limits

long-run,

the

electricity which
There

the

Chase,
on

One-

that

make effective

which

I have

predicts

and

gas

therefore

continue

figures,

the

for

sources

Future

Re¬

forecast

the

United

States

will consume 19 trillion cubic feet
of

in 1975

gas

lion in

1955. We will

barrels

oil

2.7 billion in

tons

In my

sis ,of

tril¬

5 billion

use

1975

against

against less

lead

the

sound analy¬

forms'^

various

Nation

effective/

problems

fuels
the

the

use

Economy

and

the

Tariffs?

factured

leaving

for

machine

sent

now

the

Europe. They,
able men.,//

into

the

being

con¬

manu¬

United

States.

They

Surely

way.

the

autos

new

will

not

made

the

stop

Machinery Being"
Used in Europe

/
is

not

only a difference of
wages, but also of spirit and am¬
bition

models

the

workers

of, the

Not

priced
(These

from
are

blades/

razor

used.
in Halm-

for

about

Renault

the

are

European

Common Market and Outer Seven

with

competing

United

States, but they

peting

with

higher
pay

each

the

are

com¬

give

other

manufacturers

both

quality

and lower prices.
European
manufacturers
eighty cents to one dollar per

and

five

for

Schick-

razor, which I
use. He is making and
wrapping these blades on new
high-speed machines not yet intro¬
duced in the U. S. Incidentally, I
told

that the "Gripsholm," the

newest

passenger ship
ing the Atlantic Ocean,

structed

What

Italy,

now

sail¬

was

con¬

furnished

raised

money

skilled

male

employees
sixty cents to seventy-

from

cents

per

hour

for

female

compete with Europe in
manufacturing costs they had bet¬
"sell

ter

out"

Many

the

think

course,

what:

manufacturers

-want i

isi

tariffs.

tells

unions

and, I

even

applies

tually

sometimes

this

Russia.

The

fact

intelli¬

They

are

government appointed.

unions

These

subject

are

management associations

are

ject.

main

The

difference

Large

members

have

the

between

little

very

for

the

Japan. They want tariffs kept low/
They praise our State Depart¬
ment
for
their
present
stand.
Therefore, my conclusion, is that
present tariff relations will con¬
tinue
more

and

will

result

admission

the

meetings, but will
meeting. Registrations
be

made

with

George

Hopiak, Wells Fargo Bank, P. O.
Box 3435, San Francisco 20.

With

Natural
A NEW JERSEY

day-time
exclude the

dinner

should

American

four

MICHIGAN

CONSOLIDATED

GAS COMPANY

MICHIGAN WISCONSIN PIPE LINE

COMPANY

This, however, should teach us all
a good lesson—both
wageworkers

With Stone &

will
most

SAN

ton,

SAN
A.

FRANCISCO,

Imsand

has been

Calif.—Peter
added

With

Shillinglaw, Bolger

(Special to The Financial Chronicle)

ap-^

son

now

connected

with

Salle

Street, members of the

interest Midwest Stock Exchange.

Gas

Company

MILWAUKEE GAS LIGHT COMPANY

AMERICAN LOUISIANA PIPE LINE COMPANY

AMERICAN NATURAL GAS PRODUCTION

COMPANY

Mitchum, Jones

Mitchum, Jones & TempleRuss

Smith, Incorporated.

Philips, Rosen

Admit

Philips, Rosen & Appel, 55 Liberty
this

Yet

result

Street, members of the New York

these conservation and
economic problems will have to
be viewed by the individual with¬
in the broad perspective of the in¬
terests of the public at large. In
short, if we take public as well
as private considerations into ac¬

Stock Exchange, on Oct. 22nd will
admit Marilyn Lederman, Chaun-

achieved,

count

make

as we

sions,

one

our

need

basic deci¬

fear

for

the

cey

S. Olman, Sheldon Fried, and

Gerald

to limited

free

historical accident

America

principle of
enterprise is

limited

one

forms

earth.

Nor

dedicated

the

oldest,

free

continuous

government
a

happenstance

general

Howard

Stamer

partnership in the firm.

partner

cease

becoming

AN INTEGRATED NATURAL GAS TRANSMISSION

AND DISTRIBUTION

general partner.

Dean Witter Adds
(Special to The Financial Ciironicl§)

that

responsible private
now the beneficiary

Walden

and

Miss Lederman will

efficiency Jjmd future of our pri¬
vate enterprise system.
It

Lewis

partnership,

SAN
L.

FRANCISCO,

Robinson,

Jr.

to the staff of Dean
45
of

Montgomery
the

Coast

New

Stock

Calif.—Frank

has

been

Witter & Co.,

Street,

York

added

members

and

Exchanges.

Pacific

WITH MORE THAN HALF A CENTURY OF SUCCESSFUL

Shil¬

linglaw, Bolger & Co., 120 South

Building. He was for¬
merly with Merrill Lynch, Pierce,

.energy in the years to

the

Building, members of the Pacific
Coast Stock Exchange.

different

come.

staff of Stone & Youngberg, Russ

FRANCISCO, Calif.—Robert

Fanner &,

Youngberg

J. Woodruff has become associated
with

(Special to The Financial Chronicle)

CORPORATION

•
•

much

unemployment in the U. S.

complete Forum

be $15.
A
special price of $7.50 will provide

making
profits
importing - finished
household products from all Euro¬
pean
countries
and
also
from

Stock

dinner will

such

are

big

CHICAGO, 111.—Elmer J. Thomp¬

■

the U. S. is that labor leaders and

pear

merchandisers

Sears, Roebuck & Co.

sub¬

the European unions and those in
union

higher tariffs would even¬
result in World War III.

the

laws and taxes to which the

same

Department

U. S. manufacturers that

that

told,

are

State:

our

higher

employers;
it
may
"blessing in disguise."

operate these unions
gent and reasonable.

Our

our

such

is not true. All the countries have
labor

and. "retire"from

and

About Labor Unions?

Europe has no labor unions. This

These

hour

the

also is that the labor leaders who

only

the

personally

countries

our

and

machinery

Recently, I had dinner
stad, Sweden at the lovely home
of the ^S^yedlslt manufacturer of

cars

S.v models

State

our

business."
It

flow

coming from Europe.
Today I saw a new Dauphine car
selling in Paris for $835
(with
new

Modem

classify all the way from
France, all with
bicycles to motorboats, with auto¬
Sweden.
mobiles,
of course,
leading the

•

meet—

are griping
Department in
Washington They claim s that our
State Department is/ even rude to
them, telling -/them that if they

against

moreover,
^

visiting Europe—at least

are

cannot

assembled

annual

secure

Market—1929 and Now."

including

manufacturers

(Special to The Financial Chronicle)

conservation

"The

Europe and various

ilton Bolton, Bolton Trernblay &
Co., Montreal, who will speak on

than

presented by our energy sources
and a sound analysis of the eco¬
nomics

the dinner to

speaker at

buying

are

follow the Forum will be A. Ham¬

1955.

judgment,

the

Guest

1955; and 775 million

coal

million

450

against 9.1

Yardsticks in Appraising Common
Stocks."
-

Tariff

the

already referred to

that

Stocks"; and Dr. Charles
V. Kinter, Duff, Anderson & Clark,
Chicago, who will speak on "Key

of coal.

use

absolute

oil

Growth

hydro

For the fore¬

future

necessary

are

will

and

products

built).

World

produce.

can

use

for many purposes.

seeable

also practical economic

are

limits

there

amount

sumer

$950—$1100).

Economy;" Jeremy C.
this I say as Secretary of the De¬ Jenks, Cyrus J. Lawrence & Sons,
New
York, who will speak on
partment of the Federal Govern¬
Valuation
of
ment which has as one of its prin¬ "Comparative
ever

which

parts

men

o n e

these

orders

would

EversharjpJnjector

Every

John

talk

Roger W. Babson

J.
FitzGerald,
Co., Chairman;

Fund, who will
"Selection
Securities in

labor

result of in¬

creasing
im¬
ports * from

Europe:

Chase

development in this coun¬
we are
eventually going to
the

address

Common

Philip

Witter

speakers

all

the group on "Underlying Factors
in Money and Capital Markets,"
and

rate of

need

Robert

Outlook for the Bond Market."

Resources

in this com¬
petition, I think it important to
keep in mind that at the overall
as

Merrill,'

Fireman's Fund Insurance, Chair¬
man;

will

tremendous

Money Market and Outlook For
Bond Investment: Fred H.

America, who will speak
Conservation

what

Corporation; Robert

national Business Machines.

should continue to be determined

William

was

very

chief

happen

Product De¬

Ampex

cussion

velopments: Philip A. Fisher,
Fisher & Co., Chairman; speakers
will
be
Dr.
Chester. L.
Arnold,
Stauffer
Chemical
Company;
James M. Hait, Food Machinery
Sackman,

subject of dis¬

Long-Range Investment Im->
plications."

who

the

Their

Some

and Chemical

e n

spend

Beryl

•Research and New

dif¬

why

these

All

salaries of $25,000 per year in the
U.
S. receive only
about $5,000

tain

contribute

This

reason

What About

those whom I

are

efficiently run busi¬
enterprises may prosper and

duts to sell in

countries abroad,

who

here

ness

European industry is

tives

S wed

within which

main

the

employees," who apparently can
do the work just as well. Execu¬

of/ Stockholm,

environment

products.

parts in Europe to put into
products to sell in the U. S., and
are
even
making the entire pro-

competitive challenge. In particular,

certainly desirable from a na¬
Outlook for the Economy: Jo¬
tional standpoint, and it is a func¬
seph Edelstein, York & Co., Chairtion of government to
help main-' ma
Dr.

labor

anxious

the

Five meetings will comprise the
v :/://
case" Forum:
/•/'■/K /;,/';«■ ■/;/■./.

these
are

employers to make fair
for the consumers to

U. S. manufacturers

toward management and the consumer.

economic

their

many

modern equipment being used, he praised the attitudinal
of Free European labor as
compared to American labor

Europe

members

the

use

and

ference

S. firms, Mr. Babson gained

to why

are

their

enjoy

new

difference

Fran¬

Forum

well and offers such

besides

the spot perspective

employers

who

and

their

profits

tariff

cause more
unemployment in the U. S.f but should be
"blessing in disguise" to labor and employers. In a discussion

entirely consistentwith our the 30th Anniversary of the
private enterprise- ciation's founding.

present

our

structure will

American

philosophy.
./'■/
A
thriving industry in each

writer

field' St. Francis Hotel in recognition of

energy

for

he-,

American

111.,

1959.

i,.-»,*v cisco on Oct. 29 will hold a

developed.

their

products.

and

cither

consumers

leaders

address

electricity; and in due
course, to oil shale, atomic energy,; SAN FRANCISCO, Calif.
and perhaps other sources of en¬
Security Analysts of San

eeon-

greatest

history.

the gas

found ".— to
make
a
contribution within the tangle of
forces
which rule the
competi¬
tive- position- in

coal,

have

energy,

problem

best

free people, in

field

industry's

that
omy,

OPERATION-SERVING

MORE THAN A MILLION CUSTOMERS—CONTINUING ITS EXPANSION

PROGRAM

....

,yf
22

Thursday, October 15, 1959

terest rates by legislative fiat,,,in stability. In its urge for, expanspite of the fact that this cannot sion, it has interfered with a more
forces builders
to rush to take be accomplished without a resort certain progress,
quick advantage of any favorable to the equivalent of printing-press
While it may be too much in
legislative turn.
All
this adds money. There will be
efforts, this hazardous age to expect less
further
to
the
violence of the through changes in FNMA or the government, we may at least hope
movements we have witnessed.
creation of a new agency, to pro- for a more modest government.

Violent Housing Swings

Help the Economy

Do Not

C. Nelson,* Outgoing President, Mortgage Bankers
of America and President, Eberhardt Company

By Walter
Association

+v_ •

specifically

exoeHences

recent

the economy have had a useful contracyclical effect in blunting business recessions and booms. In fact
he shows the opposite to be the case in describing violent fluctua¬
diverging from the rest of

nnmLfinn

mir

"free-wheel¬

year

since

slide

ing FNMA credit" when

past Summer.
may be seen, therefore, that
the downswings in house building
It

the

for

mortgage

than

shall

What

try

has

happened
in
business,

our

this

economy,

tracyclical

and

country,

direc-

what

tions

business

ad¬

might

visedly

the

years

booms

and

generally.
with this view.
It
me that just the opposite

disagree
to

seems

come.

recessions

both

Walter C. Nelson

is, they
softened

that
have

effect,

supposed

are

building,

house

with the rest of the
have had a useful con-

compared

the

and

while the upswings were

movements

has

what
meant

the

areas

sharper than elsewhere and have
been
nipped
off
very
much
sooner.
Some
observers
have
claimed
that
these
divergent

review

what

drastic

other

the

economy

briefly to

and

longer

were

business.

the has happened. I am convinced
economy of the nation has gone
that the supposed contracyclical
from a peak in postwar expanmovements of house building, insion,
through
its
most severe stead of serving to balance the
postwar
recession and into an economy, have added to its disascent
toward
a
new
peak 1 of tortions. They have accentuated
prosperity, the height of which each boom and have undermined
we
cannot yet foresee. What we each recovery.
The pattern is as
do know is that we have already follows,
and it is the same for
passed any point previously at- previous
recessions as for the
the past two years,

During

that

and

tained

underlying

the

carrying

still

momentum

by the steel strike.
During
this period,
'

mortgage
lending
and
the building that
depends upon it, like all other
activities, were affected by the
general cyclical movement, but
differences

These

differences.

distinct

with

mainly

are

concen-

build-

the area of home

trated in

ing and home finance, an area so

and

large

what

chat

the

construction

trend

here
very
general
a whole,
are
readily

happens

determines

much

differences

The

influential

broadly

recognizable.
After emerging from the recession of 1953 and 1954, economic
in general

activity

markable

rose

evenness,

with remeasured

by the gross national product, into
the third quarter of 1957. It then
sagged

since

and

the Spring

until

has

then

1958

Shows Opposite Pattern.

be temporarily slowed down

First, after the presence of a
recession has become fully recognized, and usually, in fact, after
the forces of recovery are already
at work, house building is given
an artificial stimulus. It gets this
stimulus partly from the automatic effect of the increasing acceptability of the fixed interest
rates on insured and guaranteed

mortgages in face of a general
decline in interest rates; and it

Spring of 1958. A
reached in

was

half

first

sag

under

the trend

new

late

1959.

into
the
high level

1958
Now

the

and

another

while

way—again

of business generally is

still in the ascendant.
In

short, economic activity

whole had about
the

from

the
and

low

32-month rise

1954,

about

l1" .nin^~mordh drop from

high
a

the

1958,
since,
temporary in-

summer

continuous expansion

except for such
ierruption as may
building
rise

as a

from

be caused by
contrast, residential
had about a 16-month
its

low

the

Fall

abrupt

nipping of the mild recovery in
building that got underway
earlier

the

severe

slide

tivity,

just

sagging
b e

FHA

the

at
d

further

and

ac-

when a
could have

time

economy

f i t

n e

and

year

from

upturn

housing.
The

thing

that

happened

in April of 1958, after a broad

was

economic
under

fall

upturn

whole

the

terest

sured

and

structure

had

rates

actually
preceding

was

and after

way

financial

should

again

called

the

controls

mortgages

discount
the

before and provided the Fed-

year

eral

National
with

Mortgage Associabillion for the pur-

FHA and

ehase-oi
—

the

established

had

mortgages
^
.

ins
ing

nrobablv
probably

house

private

the
tne

hieeest
biggest

yeaT

building

history.
But again we can see the usual

pattern—a violent
inp
ing

interest

rise

market

controlled

rates

and

the

VA~

and

eh-™
sharp

discounts

FHA

lead-

recovery

over-commitment
over-commitment,

free

the

market,

shortage of mortgage funds, in-

the housing market itself,

the

increase

insured

interest

exaggerated
mortgage

shortage
moval of

results

and

tightening

that

1959

by the
the

financ-

large part
distended
a

the first

make

the

FNMA

was

place.
this

tor-

history? What conclusions

tuations to which
been

subjected

the

past

What

offer

our

not

two

throughout

business has

during
but
also

only

years

the

re-

for

the

future?

There

hope

things

that I
do not recommend. For

example,
some

Recommended

some

are

hope

our

friends

not,

would

urge,

recommend

a
repetition of the
free-wheeling FNMA credit we
were given in 1958. There will be
activity which exerts a drag effect great demand for this, it as is
on
the whole economy and con- certam, the rate of new housing
tributes seriously to an ensuing starts is down in the early part of

measures

pre-

vious expansion. The consequence
is

prolonged decline in building

Many members of' Con-

general recession.
As

that

fourth

point,

governmental

may

actions

add
may

sometimes fail in their intended
purpose
may

and

have effects

did

not

the

actions

note

that sometimes

take

into
were

further

that

they

legislators
when

account

taken.

may

the

repeated
of Congress with
housing bills practically

preoccupation
omnibus

each session keeps the

Sooner

later

the test of time,
It! recognizes the essential

market, and suggests the.
by simplyfying the FHA
system, by giving greater flexi¬
bility to its operation, and by
insulating it from transient po¬
litical
influences,
for
making
mortgage insurance a more ef¬

which

should

arately and seriously on their own
merits.

this

may

approach to take. But

alcoholism

alcohol. As

begin
of

these
There

binges
will

year

than trying
with
more

industry

to ponder how

that

this

meet

prepared

with

confidence

the

can

set the

efforts,

level of

monetizing 'mortgage

poses.
approves

urban

d°*lar an,d

better

areas

in
urban
the pro¬

investment

private

year,

vigorous programs
renewal, at the same

stressing the desirability
inducing a flow of

time

and

of reducing

portion of Federal participation

that confidence was badly disturbed. If that were not so, we
should not have seen interest
rates rise to their present heights
°r have seen the most conservative investors turn from fixedd°llar obligations to equities, or
have seen so lar8e an outflow of
S°ld- Because of the firmness of
the administration and the supPort it has been able to obtain
from the Congress, the situation
is less ominous now than it was
in January.
Nevertheless, the
threat is not ended. It will be renewed next year and we must
continue to be alert to it.

these

essentially local

oper-

tions.

emphasizes at every point the
of allowing mortgage

necessity

financing, including insured and
guaranteed mortgage, financing,
to carry out its role to its full¬
est

potential within the limita¬
of
the
private
money

tions

market, without special
from

the

sition

impact
also

but

special
tages

shelter

of monetary
without
the
competitive
disadvan¬

policy

resulting from the impo¬
of restrictively adminis¬

tered interest rates.

While

the

details

policy

our

Our primary concern, therefore,
must be with the soundness of the

must

dent that the principles on which

from time to
dollar, and all the measures with time
to meet new issues and
which we are confronted, and all changing conditions, I am configovernmental

possible

bene-

fits with which we may be
guiled, should be viewed in

bethe
light of that concern. Beyond this
we should finally and fully disabuse ourselves of the belief that
an
omnipotent government can
solve all our problems.
The
viewed

vince

experiences
I
have
should be enough to
on

should

this

enough.

re-

prove

government

omniscience

its

Its

has

been

and

faulty,

often

have
at

all

and

been

times

per-

could
our

nhwtivpc

have

for

the

position. Though
bnvp

nnt

vpf

*11 0U* ^ectives have not ^
heen sttsined, I feel sssured that
than

ence
t

ePe

many

reason

of
to

us may
retreat

influ-

realize.
On the

t e
contrary. we should continue to
press

leason to retreat. <J

forward along the lines we

the. have laid for ourselves.

uninUnpre-

dictable. In its search for stability,

in-4t has often produced

gument

soundness of

is we have exerted a greater

ception of the course of events has
been clouded. The timing of its
results

modified

our policy has been based remain
valid and that we can stand 1 on
them in the future as we have in
the past. "I believe that the experience since the publication of
the statement offers the best ar-

con-

They

score.

although

tended

stand.

renewed

debt; and it proposes the safe¬
guards necessary for these pur¬

investors

of this

beginning

for

means

the

such

the dependability of debt lnvestmenls
At

upon

jfj tbe stabilit.^.,of tb

must

that

institution
to avoid the creation of a pri¬
mary—source of credit and a

completely bound up

are

limitations

placed

well as our

have in the mortgage mar¬
accepts

At the same time it

the

abmty to serve the nati0n's home

«
buyers,

spon¬

secondary market facility

ket.

We are not b ing wh y u selfish when we do t s. As I
P°lnted °ut in Chicago last February since ™ f time, our of occaand that ™mber deepest
sions
mortgage men,

governmentally

may

and Debt
.

„

recognizes the important place

sored

test,

in Currency

Confidence
,,r
'

should*actions

many

ways

investment law and Federal tax

protect the interest of the country
as
a
whole. I trust we shall be

immediate

little for

cure

the

people.

law.

this

proposes

make of our own
advantage in order to
to

upon

steadily expanding its claims to
omnipotence, it can claim very

meet

of the

needs

for further
broadening the market for home
ownership and real estate in¬
vestment by removing
inpediments
in
state
mortgage
and

the pyblie -credit,
be considered sep-

use

instrument

fective

housing

welfarist programs involving

that,

national mort¬

gage

the private economy of the nation

sensitive to demands of this
facing an election in the
fall, may be easily persuaded that
the

con-

insur¬

mortgage

makes to

ance

matters of serious consequence to

gress,

that

tribution

find

must

sort and

this would be

In lts ocStfc^^nt,
which was issued by President
John Hall in 1958 and^ which was
reaffirmed this year, the Mortgage
Bankers Association as offered a
program to this end. This forward
}°oklng document has stood well

and dangerous policy of
combining
in a single measure

and

w,.

the

period?

postwar

recommendations

Things Not

home

all the positive

induced

boost

which

totals

intensified

some

artificial

exhaustion

The
resulting
of mortgage funds may
credit.

further

and guaranteed mortgage

rates

the

do we draw from the violent flue-

against the rigid ceilings

runs

decline, special credit must

given

mented

the

praises Statement of Policy

mak" intefst and our future safety as

housing which is

1959
iypy

market, but also

greater desire to unleash these,,

forces to their fullest strength.

par.

revival

provide a continuity of
expansion and that will show a

gruous

called

After-Emer-

eliminated

gress

the means of breaking the incon-

in-

Housing Act of 1958, Con-

gency

the forces of a free market econ-

means,

in-

made

guaranteed

What

not

Third,

om-

called upon to make greater sacrifices than we have so far been

appealing investment. In what

only

congestion

again,

heavy

responsible for the

three years of throughout

the

house

over-strain the credit system and
hence
raise
interest rates,
and

with

another

will also
wuijOWU

beginning of

was

ing

interest

lasted

followed

rial supplies and hence raise costs,

caught its breath from the preceding recession. Following this, it
sagged almost continuously until
the Spring of 1957. Then, after a
brief recovery,
it took another
which

What

end

There

nibus housing bill, in which the omy to

—

Second, these sudden stimuli
over-induce the rate of building,
over-pressure still lagging mate-

rates, which, in itself, has in large
part come from the overstimulation of home mortgage lending,

slump

the

decline. From

costs, slower sales, and
gets it partly from various forms
of direct governmental interven- the prospect of a marked drop in
activity in 1960. Among the causes
tion in home financing.

upward climb.
House
building,
on
the
other
hand,
reached
a
peak as early as the
end of
1954, before the rest of
the
economy
had
more
than

steady

creased

its

resumed

General

to.

also recognizably

was

tion

most recent one.

although

onward,

vigorously

long

the

after

referred

was

worst
worst

its
its

the restraints of monetary policy, dom if not on its powers, that
This too can be accomplished only recognizes that, because its powers S
by an outright inflation of the are great, it should use them dismoney supply. I am sure we shall creetly. We may hope for, and we
notguchfound amonS the advocates must have greater confidencethat
be measures
strive for, a government in
Qf
, wiU

the

sign ificant
ones

of
01

fail

continuance of the basic functions
year
until well into July, of FHA will again be held hostage
builders have, been
held in un-' for the passage and approval of
certainty
by
pending
housing new insurance programs,
new
legislation from which they had loan programs, and new < subsidy
hoped to get easier terms for FHA programs, all impinging directly
mortgages and relief from the VA or indirectly on the public credit,
interest rate ceiling. They got the I hope that we shall not be paneasier FHA terms but the total icked
into
acquiescing in the
expected gain was nullified by whole in-order to get the part
the failure to get the interest rate with
which we are most conrelief and also by the. imposition cerned. This year we resisted the
off
control
over
mortgage dis- inclusion of new inflationary feacounts
a
step that caused as tures in the housing bill and supmuch confusion as anything which ported the President's veto of the
Congress had been able to invent original measure. We are likely
up to that time.
*
to be faced with a similar decision

stewardship

our

came

th0

building

end
end

1951,

have

business

generally declining volume to the
unavoidably — and I hope ex- Spring of 1958, followed by a
cusably—a time, for retrospection, recovery of about a year's duraThe
past
two years have been tion
before
entering another
period of declining rate during
unusually
of

end

The

may

the
tne

from

'in

house

1957 ^private

approaching
approacmng

housing starts decline, artificially set FHA-VA
rates and other measures to obvert restraints of monetary policy,
and Federal bills that make FHA's basic functions a hostage for
welfare and inflationary programs. Parting advice to fellow mortgage
bankers is: make the dollar's stability a matter of primary concern
and foresake the notion that an omnipotent government is omniscient.

occurred. The mortgage banker opposes

tions that have

vide house building with a source We may hope for a government
of funds that will be free from that accepts limitations on its wis-

Experience

Specific
■

si(m

recent years

that housebuilding cycles of

Nelson refutes theory

Mr.

Cites
T

of uncertainty and

state

constant

virtually

industry

building

and Financial Chronicle

The Commercial

(1598)

violent in-

*An address by Mr. Nelson before

the

Btnkers^Asso^iaHo^ cff Amerka0"1 New
York City, Sept. 21,

1959.

Volume 190

Number

5890

The Commercial and Financial Chronicle

(1599)

fact that its

the

News About

CON SOLID A TIONS

Banks and Bankers

BRANCHES

NEW

OFFICERS, ETC.

REVISED

CAPITALIZATIONS

-1.'

York

swung

the

open

doors of

new

major banking office here in
Manhattan on Oct. 14, the Bank's
104th
is

location

located

New

410

York

heads

staff

offered

and

services

Bank's

the

and

Taylor,
official

office, said

new

plete -banking,

loan

14-member

the

Avenue.

Park

Vice-President John

who

City,

that

com¬

will

representatives

instalment

trust,

international

depart¬

ments will be included among

officers

and

ployees at

other

some

the

;

died

Oct.

Mr.

Bank

the

Assistant
First

New

Na¬

York,

the

trust

been

de¬

William Street.

new

city

bank

Deposits
Cash

from
U.

June 30,'59

7,871,134,909

1,654,090,331

1,781,904,990

1,059,236.562 1,226,842,463
Loans & discts.
4,312,873,759 4,078,243,244
Undiv. profits..
104,017,109
99,385,774
*

new

trust

co.

resources

151,822,534

and

due

142,073,495

109,778,289

...

Govt

stafffed

and

33,558,659

banking service.
•"

-"/■

;

66,353,131

16,445,253

3,598,547

5,122,401

4,919,268

Undivided profits...
it

Chemical

Bank

Jr.

John

is
sis

Head

its

Rockefeller

Trust

Center

1956

and

Bank

appointed
Mr. Seiler

Wall

joined

Street.

the

Bank

appointed

was

Treasurer

George

Van

Bankof

in¬

officer

4®

■

•

Irving

Trust
New

Troy,

stock

with

the

York

the

bany,

into

office

York,
of

the

announces

Senior

Vice-Presi¬

dent.
Mr. Lawder has been associated

with

Irving Trust Company since
and
was
recently
named

1923

Prior

its

National

that he

bank's

the

Division.

was

charge of

commercial

correspondent bank
in

loan

and

relationships

West.
♦

♦

Chichester

63,

•

the

Morgan

Guaranty Trust Co. of New York,
died

Oct. 7.

Corn

•/

merged

Chemical

Bank

be¬

1954

Corn

into

Exchange

Co.

Trust

Bank

under

Don

announced

was

the

Wickenden

have

Wilfred

been

Philip
a

Block,

Director

National

Mr.
a

in¬

new

Bank

Director

Damon

succeeds

nedy,

officer.

President in 1947.

came

The

Beard

Mr.

Toulmin

joined

since

the

fairfield

county

has

and

;

issued

was

The
and

Bank

Kansas

Wornall

capital of $35Q,0C0>

surplus of $150,000.

Republic National
Texas

proposed

share of

and
a

elected

common

outstanding
said

cash

Bank1 of Dallas,
dividend of on©
stock for every
common

dividend

1919;

Fifth

bank's

1928

served

and

the rest of his

Guaranty

Ave.
there

He be¬

career.

Vice-President

as¬

was

1942.

Co.

Trust

was

with

earlier

Co.

the

Morgan
form
Co.

this

York

by stockholders at

office.
J..

McGrath,

Vice-

special meet¬

ing which the Bank has scheduled
for
Nov.
15.
It also ' needs
the

approval of the State Comptroller
staff
of Currency.
Second
If the proposed stock dividend.
Vice-President; ; Stuart C. MacJs carried out 788,887 shares q£
Intire and James Stenson, Assist¬
members

Other

fice.

Leslie

of the

Anderson,

Cashiers, and Christopher P.

new

stock

will

added

Sweeny..

•

Sept. 30/50 June 30/59

$
Total

Cash

and

•

181,627,090 161,103,426

York

since

164,454,831

resources'—.—

Deposits

years

144,800,126

due from

for the past 25
Wall Street.

1924,

banks
U.

rity
Loans

14,277,675

13,774,708

holdings—

45,454,283

39,593,862

discounts

101,608,944

90,999,721

profits::.:

1,639,483

1,845,737

—___

Govt.<

secu¬

Farmers
Bank

and

Merchants National

Benton

Vice-President,

named Presi¬

was

dent of the First National Bank off

Harbor,

Denver, Denver, Colo., to succeed

John,

Benton

Harbor, Mich., with common stock

Evans,

who

was

Honorary Chairman.

Harriman

Brothers

Co., New York, commercial bank¬
Walter

appoint¬

the

announced

has

ers,

ment

Brown

SYMBOL OF INTEGRITY

He will be particularly

manager.

international

with
Mr.

Brown

op¬

In the

form¬

was

OVER-THE-COUNTER-MARKET

Vice-President in the for¬
division of the New York

erly

eign

andf

cently has been a Vice-President
of the Chemical Bank New York

York,

Chairman

announced

Harold H. Helm

Oct. 14. Messrs. Don

and Wickenden will be

agers

New

joint

London office which

new

is to open in

December.
Mr.

went

through
First

the

Boston

Corporation in New York in 1937.
He

became

affiliated

of Manhattan

with

the

its London

representative

that Hank

merged into Chase

was

1953, and when

Manhattan

pointed

Assistant

dent.

1955

was

ap¬

Jay

financial

Mr.

(New

1952

representative

He served

Jersey)

Company,

and

Atlantic

Great

Inc.

Vice-President
Oil

Standard

quest of
Wickenden
branch

established
the

London
Bank

than

000,000,000, Chemical
Trust

Bay

$4,-

Bank, New
Company is the third

the
New

THE

OFFICIAL

N.S.T.A.

CONVENTION

NUMBER

AND

Bank, Brooklyn,
door

the

years

total

YEAR-BOOK

N. Y. opened

that

its

did

assets

just 50
would

Vean,
Ridge

President - of
the
Savings Bank since

describes

the

fantastic

neighborhood

The

Bank

anniversary

this

year,

SILVER

ANNIVERSARY,

VILL BE

PUBLISHED BY THE "CHRONICLE" NOVEMBER

26th. PLEASE RUSH YOUR ADVERTISING SPACE RESERVA-

Mc-

Bay

1947,

growth

institution.

celebrates

THE

TION FOR A PREFERRED POSITION.

nearly $200,000,000."

With these words David B.

the

its

neighborhood
little

Bank's

FEATURING

Savings

Ridge

except

successfully operated for
eight years.
assets

the

"When

founders

MEUM PACTUM

(New
of

1909

which he

With

little

Rafid&in

DICTUM

ci)

York.

formerly

Bank

this

INC

Tea

Director

Company

Thereafter, at the re¬
the Midland Bank, Mr.

Director
Pacific

Chairman

business

York.

ASSOCIATION,

Company

was

and

Assistant

TRADERS

Oct.

Oil

Standard

ant

the

Crane

Reserve

London, Eng.

SECURITY

consult¬

Crane

Federal

1947 to

NATIONAL

13
member

He has continued in London

Branch,

York

York,

New

Company,

Trust

Empire

of the board.

and

capacity.
-V Mr. Wickenden began his bank¬
ing career 34 years ago with the
Midland Bank Limited, Overseas

New

the

Jersey)

in that

from

Directors

Vice-Presi¬

re¬

more,

Company.

Trust

elected

Don

training program of

Bank

Company

man¬

in charge of Chemicals

the

Trust

New

Company,

3,155,548 shares outstanding.
;
*
*
*
Continental and its predecessors \,
have maintained offices in New Eugene
H.
Adams,
Executive

co.

year

Guaranty

Morgan

Trust

it would pay
14
cents a

thereafter

Presideqt, is in charge of the of¬

ant

trust

stamford, conn.

Vice-Presidents of Chemical Bank
York

Cityr

County, Mo.
Roberts.

four

Sept.

Wood

Trust

Chairman.

Cashier is Ardo

President
the

The bank has
and

;

Office of Comptroller
Currency to the Broadway

Kansas City, Jackson

its

the

National

elected
and

'
"

and

Edward

are

1926.

Bank

1925.'
the

They

Semenenko

the 'Bank

state

New

Serge Semenenko and John
with

charter

and

of Ada, effective

•

Ada,

title

Bank

share monthly. It currently pays
and distribution of a monthly dividend of 16 cents a
municipal securi¬ 'share.
ties.
Bond activity in 17 eastern
The plan is subject to approval,
states will be covered from the

posts

Vice Chairmen of the Board.

Mr.

its

National

Company
1.

an¬

operations will be
2 by Continental
Bank

First

Bank

changed

Nov.

National

Okla.,

of the

first

was

National

the

Toulmin.

21,447,744

•

trading

ing,

other Senior Vice-

were

695,330,989

23,449,355

First

Oct.

Com¬

succeeding

Continental

Board

both

also

Presidents

new

752,099,698

department to handle underwrit¬

•

Directors

promoted two
to

discts.

Trust

Illinois

quarters to be occupied at
71 Broadway will include an of¬
fice of the bank's municipal bond

be¬

Brace

Mr.

571,061,114,

The

New

Brace, who becomes Chairman of
the Board and continues as Chief
Executive

439,320,990

529,413,272

se¬

of Chicago, it was an¬
nounced Oct 8 by David M. Ken¬

Bank

Lloyd

382,735,038

holdgs.

Undiv.

The

30/59

profits—

Loans

Company

First

1929.

Mr.

York

Illinois

Mass.

the

banks—
Govt,

curity

predecessor banks in 1917. 1

elected
of the

Boston,

joined

cer¬

was

June

due

and

from

Borland, whose re¬

Oct.

Cash

simultaneously.

expanded

Deposits

elected

Trust

111.,

Chicago,

Borland

New
it

and

detroit,

1,976,030.08G |
1,798,761.472

1,937,121,889
1,753,074,448

resources-

Ada,

was
Continental

Bank

nounced

J.,

Nov. 5,
Donald

stitution.

Roger

Total

Jr.,

the

and

tirement from the Board

Moyer, President of the

the

office

erations.

and

White

Levittown,

bank

of
common
of $20 each.

Sept. 30/59

approved

effective

national

with

divided

michigan

will be mailed to the shareholders.

for business

open

the

12, 1960.

tificates for the additional shares

Al¬

Bank

Y.,

become

upon

Chauncey B.

joined the Guaranty

concerned

Bank.

"■

merged

was

State

will

Jan.

44,500

Harbor,

$890,000

stock of the par value

by the requisite vote of the share¬

Albany, effective Sept. 25,
The

Abeel

Brown

Exchange

was

submitted

amendment

pany

been

Abeel,

the

charter and title of State Bank of

Alan

White

Westchester,

National

New

into

National

City
Bank
of
Y., with common

Albany,

Bank

Benton

capital stock

Trust

Vice-President

amendment

holders, the stock split will there¬
*

$600,000,

and

will

ing to be held

elected

was

Westchester,

National

The

promotion of H. Miller Lawder to
the

000

Bank

appropriate

shareholders at the annual meet¬

Erff

Mr.

1959.

Company,

New

been

$10.)

Vice-President

value

par

sfc

;

Undivided

Oct. 8.

had

Executive Committee of the

52,

The

Association,
providing for the reduction in the
par value of the bank's stock from

from

Damon,
was
President: and Chairman

amalgamated

Jenkins,

Bank

10.

trust

Chemical

Stuart

the

was

Dowling

Assistant

Chairman, announced Oct.

the

1952

Office

The

joined

Assistant Secretary.
assigned to the Security Analy¬
Department
at
the
Bank's

came

the

Manufac¬

Company, New York

Seiler
and

for

As¬

by
Horace
C.
Flanigan, Chairman of the Board.

Advisory Board, Harold H. Helm,

fore

announced

Harder

DOwling

Secretary

signed °to

vestment

Assistant Vice-President

Company, New York, has elected
George O. Davies and Howard C.
to

shares,

100,000
.

55c

Appointment of Joseph L. Seiler,

Mr.
York

Chicago,

the bank's Articles of

Gardens,

increased

was

New

stock.

Plains, N. Y,
*

-f

Springfield

...

71,194,504

Co., died

provide complete

Vice-President

secu¬

4.1
discounts

Merwin

100,362,891

holdings

Loans

2, and will be fully equipped

from

banks

rity

20,314,779

Deposits

E. C.

the

Cash

will be located at 25-31 Moorgate,

Head

city
york

Sept. 30,*59 June 30,'59
Total

Office

London

new

se-

national

its

Bank

$852,500 to $1,000,000 by the sale $100 to $20 a share and a cor¬
new
stock, effective Oct. 2. responding increase in the number
(Number of shares outstanding— of shares from 1,250,000 to 6,250,-

the

Chemical Bank New York Trust

holdgs.

first

Company's

York,

6,760,398,112 6,966,148,289

banks..

World.

due

Govt,

curity

7.878,600,008

_______

and

has

york

Sept. 30,'59
resources.

Bank

Dowling is assigned to the Bank's

national

r "v

Empire State office.

Directors

National

Free

Mr.

Cashier.

Total

centers

all

Mr.

He joined the old National
City
Bank
in
1928
as
an
Assistant

—

throughout
commercial

Banks

Assistant

charge
of the Bank's research
department

first

York,

Vice-President

the

New

of 58.

age

was

partment and had
at 22

York,

correspondent
the U. S. and

1945

Kohler

;

New

offices.

stock

capital
National

Queens

turers Trust

H.
Kohler,
an
Vice-President of the

The

sistant

Board

First

handful

common

largest bank in total resources in
New York City, where it has 102

and

John

City

em¬

office.

tional

the

from

grown

The

The Chase Manhattan Bank, New

The

customers

of $750,000; and The State Savr
ings Bank, Bridgman, Mich., with
farmers, townfolk and small busi¬ 111., on Oct; 9 voted in favor of common stock of $100,000 consoli¬
nessmen
to
a
list
of
100,000 a five-for-one split of the bank's dated, effective as of Sept. 30.
depositors ranging from penny-^ capital stock, subject to the ap-„ The
consolidation- was
effected
saving
youngsters
to( financial proval of shareholders of the under the charter and title of
bank owning at least a majority
tycoons...
Farmers and Merchants National
has

NEW

list of

its

50th

proud

CLOSING DATE FOR COPY IS OCTOBER 22nd.

named

V.'

■

The Commercial and Financial Chronicle

Thursday, October 15, 1.959*

(1600)

In addition to the

protect the bcrrower, not to har¬
ass

rthe lender.

basic division

foreclosures

between

that

Mortgage

with

highly

Commissioners

would

The

curity

and

some

states and

others

Laws.

acceptable to insti¬
lenders, mortgages must

To be more

tutional

partake as fully as possible of the
characteristics which give bonds

not

deed of trust in

dicial

all, each form

liquidation

of the

usually

o r e c

without

substantial to

re-

securities their erties is, unfortunately, quite a
appeal—simplicity of form, ease different proposition—one that is
of storage arid sale, and standard
subject to even more variables
and
well-established remedies.
than Vermont weather in March.
Mortgages, of course, cannot be
fitted into this class completely,

and similar prime

redemp¬

out of
likewise, the
matter of revision and standard¬
ization in the mortgage field com¬
mand similar attention and effort?
As I have said, this is particu¬

have

of course, is that we
local
sovereignties
to

contend

with, each having its own
peculiar
idea.
Tradliions
and
customs

are

powerful

influences

item

any

commercial

one

lor

buy

purchase

home; and only

mortgage
money

yet

the general investment

speak, in
market.

How Lockheed-built satellites are

Foreclosure Obstacle Remains
In the pastj

stacles

two formidable ob¬
tended-

have

■P

militate

mortgages— one is the
titles, and the other,
foreclosures.
The first difficulty

against

virtually disappeared, thanks
insurance.
The
second

has

W2mM

Making space travel safe for man

matter

-title

continues to challenge us.
.

Obviously,
the
ideal solution
would be a complete overhauling

mortgage*laws

the

every

state and the universal enactment

uniform

and scope

of such

breadth

effort, how¬

renders it unattainable with¬

ever,

The

code.

any reasonable time schedule,
every-lawyer knows. I believe

Before

be sent into the emptiness

man can

space,

must know how to protect him

could,' nevertheless, within the
framework of existing laws and
customs peculiar to each of the
states, agree on a basic philosophy

safely back to earth.

to the nature and purpose of a

The United States is

lien

secure

method

—

using every scientific
problems. The satellites
in the Discoverer.program of the Advanced
Research Projects Agency—Lockheedrhuilt
Agena vehicles—are one of the means to

the

and

debt

against the hazards of weightlessness and
cosmic radiation
and how to bring him

enforcing it. Though
this, too, would be a long and
complicated struggle, any time
effort

and

spent

worthwhile

narrowing

would

What would
In

essence,

seek to achieve?

would

situation

states the law would

and

borrower

each

other

seek

all

where

permit lender
with

contract

circumstances

under

where the resulting loan contract
would be fair to each; where the
lender
would
feel
disposed
to

make money available abundantly
and
at
reasonable rates; where
the borrower

would

protected

the* enjoyment and salvage of
his property; and where the lender

is being exe¬
by the Air Force's Ballistic Missjle
Division, ARDC. Lockheed's Missiles and

cuted

jplpiy

achieve

Space Division is prime contractor and sys¬
tem

manager of a team that
General Electric and Bell."
The
lite

eter.

be relieved of unnecessary

risks and expense connected with
enforcement

lien.

his

is not impossible.
It would not be

All

this

public
to
encourage laws that
summarily deprive a man of his
home upon either a trivial or a
serious default, nor, on the other
hand,, to encourage laws that be¬
set

lender

with

technicalities

burdensome

and

cessful

the

ing

work

the

property.

The

real sense, tends

very

against the borrower, to

extent

least

that,

other

things being equal, the lender in¬
stinctively will shun those
where
out
to

right

to impose

iion-defau.ltmg

extra

long drawn

appealing climate.

not

cost

for

upon

borrowers

their

legal remedy

fault.

money

due

closure

ment

event

de¬

In most states current fore¬

law

years ago

which

was

conceived

many

economic environ¬

every

longer

prevails.

The real purpose of a redemption

provision in foreclosure law is to

suc¬

the way.

90-odd minutes,

Agena radios home to its tracking stations
hundred

of the

than

space

phenomena it encounters and monitors

own

measurements

performance.

■■

Trickiest part
space

of the job is recovering the

capsule. Most satellites tumble and twist

they hurtle through their orbits at about
an hour. The Agena can stabi¬
lize itself on orbit and position itself at the
18,000 miles
60°

angle to earth that's necessary to

separate the re-entry capsule.

capsule's retro-rocket slows it to safe
speed for re-entry, then drops away. A para¬
chute floats the capsule earthward for aerial
recovery

by specially modified planes.

Each time

manned space

Agena satellite is launched,

travel

comes

closer to reality.

Agena satellite is America's most advanced or¬
bital vehicle today

—first in the world to achieve
polar orbit. Agena's nose section contains a
vehicle and recovery capsule.

combined re-entry

>v-

*:/
/<-"/

■■

exact

■

solely to unnecessary complexities
of

globe

are

areas

expensive, and gravitate

all

foreclosure

and

The

pledged

latter, in

As it circles the
the

Agena

placed in completely

polar orbits;

unreasonable

delays in possessing and liquidat¬

i?:4

% My*/

long, 5 feet in diam¬
ton when in orbit.

the most difficult of all to achieve. Four

the

interest

weighs almost

designed to be put into polar orbit—

was

satellites have been

its
in

in orbit—19 feet

Wmllill

includes Douglas,

Agena is by far the nation's largest satel¬

now

would

/■

ARPA's Discoverer program

suc¬

cess.

these

achieve this end.

pro¬

practical hope of

gram, offer

thus

indeed, and by
the scope of the

to solve

means

rarely is

great

and

all
is

distinction made in the law

deal has been done
remains to be done to
enhance their marketability, so to

but

and

borrower, all too often treats
mortgages alike. Hardly ever

and

The Uniform Commercial Code

lender

between

lationship

pattern of mortgage law persists.

this kaleidoscopic

the matter of
example,
the

cloud

between

and that is why

over, in some states the matter of
redemption is treated as a sacro¬
sanct inherent equity; in others it

redemption, which hangs
over the whole re¬

of
a

not,

For

foreclosure.

The answer,

here, for again, ju¬
1 o s ur e s may be

order

makes

Should

needed

larly

excessive.

because

chaos.

Why all this should necessarily
be so is hard to explain logically.

grounded
in
the
conscientious
concepts of the ancient courts of
chancery, or they may be mere
arbitrary rules drawn up to suit
local needs and tempers.
More¬

pledged prop¬

some

lor

trying to deal with a field that is
just as complex, or even more so,

states Tfie Code definitely is on its way
to a wider acceptance, essentially

all.

Then, too, there are
endless ramifications
into the field of appraisement and
receivership laws and deficiency
judgments. Costs correspondingly
run
the gamut from nominal to

The fragmentation

o n.

end

not

does

troublesome.

too

docs pledge
the property.
The matter of the
enforcement of these liens and the
After

mot i

provision

tion

without court

instrument,

action

seemingly

the latter are merely
sales of the property
under powers contained in the se¬

purpose.

our

after.

there is

summary

uniformity in

achieve

privilege granted by
bometimes
re¬
is made before sale,

sometimes

and 'expen¬

court action;

even

necessary

out

present use of a mortgage in

order

of
Uniform State

However,

desirable.
not

attain that degree of

Conference

National

the

standard form of security
would, of ^course, be

single

drawn

sive, we find a further subdivision
between judicial and non-judicial
foreclosures.
The former require

instrument

Liquidity
Continued from page

adoption

universal

The

long

are

mere

legislature,

demption

quick and cheap and those that
and Liquidation

EnfoiwmeM

the

are

"K-

-4

Volume. 190

Number

5890

The Commercial and Financial Chronicle

any realistic distinction made on
the basis of loan ratio.. Is tnere

foreclosure

not good reason to treat

sive

commer¬

cial

mortgages differently* from
purchase-money home mortgages?
Is there not

good reason to treat a
33%% equity differently from a
20%, 10% or even a 2% equity, in
this matter of redemption?
Is it
fair or just to let a defaulter on a
virtually 100%
purchase-money
mortgage remain in
possession
rent free

often

the

lender,

has to resort to

just

All too

year or more?

such

cases,

forcible eviction

recov er

; sadly-beaten

house.

mean,

We
Let's
and

have

begin,

Somewhere

start

with

ment of
Such

somewhere.

standardization

these

will

proposed uniform code.

value

closer

real

thought.

at the time of sale; and of
importance should be provi¬
sions for the expeditious disposi¬

cial

for

farm

homes

and

when

for

properties, subject to further

reduction in the

of farm

case

and

mortgages if the debt has

been

reduced

percentage.
ciency

specified

The right to

judgment

served,

based

fair

defi¬

should

other

loans

pre¬

market

FHA

seasoned

commer¬

with

good

loan

and

payment

would

tion
of

step taken
uniform

such

amount?

same

in the

code

direction

brings

objective, and

Every
of

uniformity in foreclosure
an appropriate
enterprise for the Mortgage Bank¬
more

ers

Association.

State

are

the

di¬

and

/j-/.;

many...

state

maintains

mittee

state

official

legislation,
standing Com¬

Uniform

Most

likewise.

Also,

State

Laws.

associations

bar

commissions

states have

many

uniform,

mendable efforts in various fields

where

both

and

deter¬

the

widely

respected.

You would have the assistance of
many

other distinguished groups.

In addition to the National Con¬

ference of Commissioners on Uni¬

toward

degree of uni¬
laws. The Uni¬
form Negotiable Instruments Act
is one of the outstanding exam¬
ples of success in this field. Other
activities of this committee,. to¬
gether with those already cited,,
greater

formity of state

to demonstrate that

serve

'■

American
for

field in which your

needs

lies.

the
has

been active in the field of

public interest
You would speak with au¬

the interest of both
lender, and
competent to fairly appraise
serve

borrower and the

mine

Laws,

Association

laws, appointed by legislative act.
They
secure
concert
of
action
through
an
annual
conference
with
these
commissioners,
and
hence, in effect, act as a national
committee on uniform state legis¬
lation.
They have made com¬

rectly
the

After all, you

closer to

we may

form

uniformity

the ques¬

laws would not be

competence

bond of the

for M. B.

like to raise

thority in

government

commonly

to whether the attainment

able and

Bar

records would be just as market¬

salable

than

years

tion of Federal liens.

distinguish
The safety, liquidity, and fa¬
property,
home vorable yield of a mortgage loanproperty, and commercial or in¬ portfolio are now well
recognized.
come
producing property. Fore¬ Lack ' of
marketability, however,
closure should be pursuant to a
is a drawback which affects their
statutory power of sale, after rea¬
sonable notice served, recorded, popularity as a medium for in¬
and
published.
Redemption pe¬ vestment. Could we not reason¬
riods after sale might well be, for
ably look forward to the day
example, one year for farms and
less

Job

should

code

between

not

simplification

This

comprehend

study and thep the develop¬

home
Start

practices.

at the outset,

(1601)

have

already effective mechanisms de¬

i''

voted

the

Much

promoting
,;..i

task

uniform laws.

...

could

assistance

ex¬

these established,
groups. However, leadership must
be taken by some group interested
in and competent to speak on the
subject. Would not the Mortgage
pected

from

Bankers

Association

propriate
ership?

one

the

the 46tb

address by Mr. Davis at

*An

ap¬

to assume that lead¬

Convention,
Mortgage
Bankers
cf America, New York City,.

Annual

Association

Sept. 23, 1959.

American Stock Exck
To Receive Nominees
Committee of the
Exchange will

The Nominating

Stock

American

hold open meetings on Nov. 4
Nov. 11 to receive nominees

be filled

offices to
election

Monday, Feb. 8, 1960.
the Committee will

addition

prior meetings on Oct. 21
28, if members desiring

hold

and

for
annual

at the

Oct.

to appear at such meetings will
request an appointment from the
Secretary.
Vacancies to be filled
at the
election are for Chairman of the

Board; members of the Board of
and Trustees of the
Gratuity Fund.
Governors,

Form No. Ind. Inv.
Northern Indiana.
Inc. has
been,

GARY, Ind.

—

Investment

Co.,

formed with offices at 504 Broad¬

way

engage
Officers

business.

securities

are

Richard L.

Howard, President and Secretary;
Robert

Vice-President;

Browne,

and Howard M. McKinney, Treas¬
urer.

Mr.

McKinney

was

formerly

with

Sills, Fairman & Harris and
Doyle, O'Connor & Co.

Five With A. G. Edwards
(Special to The Financial Chronicle)

LOUIS, Mo.—Lewis U. Bett-

ST.

man,

Jr., Harvey J. Higgins, Wal¬
Kriegshauser, Jr., Owen D.

ter G.

Snyder
have

Robert

and

been

added

A. G. Edwards &

Eighth
New

Sterling

the

staff of

members

Street,

York

Sons, 409 North

and

Midwest

Exchanges.

the

Stock
v

Irizarry Garcia Opens
HATO

Boosted into space by the 150,000-pound thrust of an
Thor missile, the

Air Force

second-stage Agena satellite is powered into

bit by its own liquid-fuel rocket engine of

or¬

15,000 pounds thrust.

Once in
tions

orbit, the Agena satellite radios back to its tracking sta¬

than

hundred measurements of its

of the conditions it encounters

performance and

it circles the earth at 18,000

REY, PUERTO RICO—A.

F. Irizarry Garcia is engaging in a
securities business from offices at

506

Carlota

Matienzo

Street

Urbanizacion Los Maestros.

mph.

Griffith & Co. Formed
CLARKSVILLE, Ark.—Griffith &
Co., Inc. is conducting a securities
business from offices at 608 John¬
son.

Officers

are

Reynolds Grif¬

fith, President; Charles L. Mc¬
Carthy, Jr., Vice-President, and
Ira Mr;;Reed, Seeretary-Treasurer..
JET

TRANSPORTS

•

JET

FIGHTERS

•

JET

TRAINERS

BALLISTIC MISSILE RESEARCH & DEVELOPMENT

NUCLEAR-POWERED FLIGHT

•

COMMERCIAL

MILITARY

WEAPON SYSTEM MANAGEMENT

ADVANCED ELECTRONICS

NUCLEAR REACTOR DESIGN & DEVELOPMENT

•

PROP-JET
•

TRANSPORTS

AIRBORNE EARLY-WARNING AIRCRAFT

GROUND SUPPORT EQUIPMENT

•

ROCKETRY

ANTI-SUBMARINE PATROL AIRCRAFT
•

AIRPORT MANAGEMENT

WORLD-WIDE AIRCRAFT MAINTENANCE

Joins Hess Inv.
(Special to The Financial

Chronicle)

QUINCY, 111. —Lyman D. Blessman has joined the staff of Hess
Investment

Company,

"State Bank Building,.

Illinois

The Commercial and Financial Chronicle.

(1602)

.■■■)■

Funds Report

Mutual Funds

Selected

RICH

Sidelight Reactions to Treasury's "Magic 5s" Issue

American

The financial community, where the subject for discussion in 1959
almost invariably has been foreign tensions, tight money and the

INC.

steel

Selected Investments Co.

for

111

the syndicate department of

leading wire houses, a longtime specialist in tax-exempt
bonds, it was nothing short of a revelation. Said he: "Customers
kept me on the phones. Others waited in the anteroom. All wanted

FREE ON REQUEST

for four years and ten months.

run

them

discourage

can

they seemed

because

to say

net assets of

possible long-term

for

growth of

capital and income.

|
,

- —

Income Fund
A mutual fund

list

of securities for

current

fiscal

needed

J-

A prospectus

each

investment dealer.

The Parker Corporation

your

order

mutual funds

than

country

Boston, Mass.

with

occasion

little

free

hand

astonishment,

closer to the thrift-minded

are

bankers,

brokers

Wall Street used to

buy a good stock.
yield is 5%."

While

even

ing

ports

since

middle class

that anytime

say

That's the way we feel

—

was

interested
at

none

outcome,

that

many

growth

mutual

stocks

cash

reserve

which it

wants

the

fund

that

managers

little

provide

middle
fattest

class

keeps

return

sturdy growth
repeatedly that there

the

mutual

vast

are

hoards

fund
of

field.

cash

seeking

ment outlet.
its

sale

but

The Government found that out last
the Treasury 5s was not
designed for

for

banks,

boosted

the

rate

the

so-called

500

are

drying

cam

thop

JOSE,

i-r

/-i

Calif

Stone

Street

,'t
to

engage

business.

Officers

investment

business

Secretary.

Sheppard,

Incorporated.

are

organization

Assistant

Elizabeth 3, New Jersey

187B

are

VAT.m.

tit

from
He

offices

was

Kail

formerly with Walston &
Co., Inc.-

assets

net

119,280

capital stock with an
of
$9.40 per share.
in

currently

Fundamental

excess

—

: Mk Jth
\u

sales

first

nine

totaled

215%

Fund,

its

Inc.

months

for the

this

year

$1,398,806, an increase of
from the year-earlier pe¬

riod.
,

the

aee

276,000,

raising

date

almost

$99,854,000, business writ¬
ten by the company's 3,000 mutual
fund
representative
during the;
nine months ended Sept. 30 was
than the year-ago
$54,548,000, - and 21%
the $82,700,000 record total

higher

83%

figure
above

for all of 1958.f
"So

with

Doremus

Co.

ing the winning fight'

George

C. Textor

Marine
Midland
in 1916, Mr. Tex¬
tor has been a director since 1952
and was named President in 1955.
He holds directorships in 12 cor¬
the

Joining

Trust Company

including

Pepsi-Cola

Company,

Sheraton

Corporation

America, and the New York,
New Haven and Hartford Railroad
of

Company. He is also -a director
of the
Federation of Protestant

Agencies Inc.,
College, find
of
the

Welfare

Trustee

Treasurer
American

Ithaca

Trustee

Co-Chairman,

Will assist in

The
L.

over

Allyn and Company,
South

122

away

Co., in

Pont

Chicago.

W. A. Lippman

Joins
Woslrych, Currier

(Special to The Financial

Chronicle)

Calif. — William
A. Lippman, Jr. has become asso¬
ciated with Woolrych, Currier &
Carlsen, Inc., 210 West Seventh
Street.
He
was
formerly with
LOS ANGELES,

Inc. in the

Company,

trading department.

Forms Mora & Co.

Calif.—Adolph

BEVERLY HILLS,
Mora

engaging in a securi¬

North

Drive

Camden

the firm name
was

offices

from

business

ties
366

<ci7fi«Qnoo

was

& Co.

quarterly
DIVIDEND

77%
'

AVic

share distribution

net

and 23c a

from realized

payable

securities

profits,

November

16, 1959

from

investment income

of record October 22,

stock
1959.

mark-last month,;totaling^75,986

Tick-

70.360.

WALTER L. MORGAN,
President

October 8, 1959

•

Arnold

FOURTH

down

under

of Mora & Co.

formerly with Lloyd

& Co. and T. R. Peirsol

lh?R third-Lrind

C.-sponsored contractual
plans in force passed the .75,000-

was formerly man¬
municipal department

years,

many

ager of the
for Francis

Sum-'

was

the

Mr.

Street.

hulbness written dOTing-tte
ouartS lust ended

tef-

Incorporated,

Salle

Sheldon, who has been in the in¬
vestment business in Chicago for

$11,000,000 a month,

mer

Chronicle)

CHICAGO, 111.—John G. Sheldon
has become associated with A. C.

far this

Allyn & Go.

(Special to The Financial

compared with about $6,000,000
through Sept. 30, 1958."
Arrormn?
to
Kenemok
According
to qvir
Mr.
Benedick,

?nf

the

John G. Sheldon Willi

year," said I. P. C.
President Walter Benedick,; "our.
sales
volume
is running -at the

;

Mri TlCk,

was

it i

while continu¬

the 1959 total to
$100,000,000, was

reported by
Investors Planning
Corporation of America.

061,000 Of the Junfe 30,.1958;quar.-

t h

Pledger &

third-quarter volume of $31,-

somewhat from the record $37,-

re¬

„ViCe"
T*

and

Defects
A

Growth

CaIllnan>

now

battle

all-out

$550

at the SeptemberVclosing, ;ior a
,
45% jump from the 52,558 on the
ner was one of the founders of ,.BooksJ a year earlier.
Plans in
Granbery, Stafford & Co. Later he force three months ago came to
Qct

■

$182,665,-

value

rate

Avery

Reginald W. Tickner passed

Drive.

was

Fundamental issued

ports

Keginaid W. IlCkner.v*

-r,-!

8612

against Birth

Avery L. Eppler,

•

YAKIMA, Wash.—Riley L. Tyler
is conducting a securities business

invested

date.

601 Marshall is

Secretary^Treasurer

Forms Parifir Sprurifipc

accounts

Florida

Officers.of the new,

Hugh W, long and Company, inc.

Dimes

million.

San being continue<i by Eppler & Co.
se-

5°richulti slcrSv^r™iS Se"
and

March

engaged in an

said

savings

REDWOOD CITY, Calif.

the $1,121,232 assets of
personal holding com¬
In exchange for these as¬

Total

same

the growth of our economy

^ kee" formed Eppler Company,

with
r=Hn
Carlos

curities

—

$51,354,797.

was

amount

that

L.,

asset

Now Eppler & Co.

(Special to The Financial Chronicle)

bAJ\

Aug. 31

shares of its

invest¬

Chairman.The

asset

up.

Stone & Schulte Opens

sets,

of its ability.

to finance

pany.

record of

resources

Loeb, General

A. C.

Fund

Fundamental Investors, Inc. has
I.

outstanding achievement, it is not diffi¬
cult to guess where a large
part of the billions of dollars, that the
$2 billion limit placed on the Treasury 5s did not
touch, will go.
It is the giant nest
eggs, brought into sharp focus by this latest
Government financing, that has the investment
community buzz¬
ing these days. If this revelation does
nothing else, it. should stop
the idle talk that

acquired

Recognizing

Based

sfc

Mutual

well-informed and well-heeled generation interested
growth and return, it has deliberately set out to pro¬

security,
vide these things to the best

an-

outstanding systematic in¬

under

$38,805,007, the equivalent
a share, against $32,477,$8.37
a
share a year

The "FdtsJ.

bonds to 3%% from 31/2%. It was this increase that was
expected
to stop the cash-ins of these bonds
by the small savers.
It is to the credit of the mutual fund
managers that they
have dealt in adult fashion with
prospective investors.
that this is

that

and

week, although
the individual,

Series

re¬

announced

companies, pension funds and similar
Only a few days earlier the Government

interest

Fund

ended Aug. 31 net assets

Founders

in sight

Fund

earlier.

insurance

institutional investors.
had

$9.67

032

sizable

have

been

has

Mr. Textor
coordination of
campaign activities and help to
enlist the support of industry, la¬
bor, professional and civic leaders.

are

We have noted here many times that there is no end

the

Dimes,

nounced

Heritage Foundation.

totaled

this

pri¬
yield, or

very

New.

1960

and

the year

commensurate

safety.
Indeed, corporation treasurers do the
thing when they put out idle pools of cash for hire.

Mutual

are

of Sept. 30 net assets of

Texas

especially when the

with

This

shares outstanding. This
with $2,558,219, $15.13 a
share and 193,939 shares at Dec.
31, 1953.

all, and turn in outstanding performances by stress¬
not income, even they are aware that the great
on

Sept. 30 net

share.

Square

vestment!

true

named

been

the

compares

good time to

has

York,

March

York

of 538,886

the

New

Co-Chairman

$7,877,181, equal to $14.64 on each

for

majority of the investment-minded

W" Ii mdfUffl UI UIIIIC*
George C. Textor, President of the
Marine Midland Trust Company:

porations,

with $3,023 on Dec. 31,
v
*

Penn

Apparently, the sophisticated well-to-do people across the
land felt precisely that way about a U. S. Government
security,
especially since the yield is 5%.
marily

$3,273

1958.

Treasury aides. New asv they
are in the U. S., the mutual funds have grown
up with this bur¬
geoning middle class and indeed thrived by providing the vital
services of trustee for this segment of our society. The reaction of
one fund official to this public scampering to purchase the Treas¬
ury's sums up the situation best:' "One of the most intelligent
men

assets

survey

should

Nelson Fund had

funds.

While

This com¬
$26.25

share.

•

competing

of $25,320,675,

with $22,931,620 and
Sept. 30, 1958.

less flabergasted than Wall Streeters

pares

It sought to sell only $2

house

managers.

200 Berkeley Street

Sept.

equal to $28.96

of the money-management community leads to the
inescapable conclusion that the men who were least surprised by
the hectic rush to buy the so-called Magis 5s were mutual fund

fund is available from

assets

total

its

income.

was

National Aviation Corp. had net

billion of these obligations,
subscriptions totaled more than $11 billion.
Congress,
which refused to permit the President to-pay more than 4V4% for
long-term money (obligations running more than five years)
knows now, if it didn't know before, that the Government can put

investing in

bankers.

yet

1
»

$35.67.

figures

compares

The Government
and

ftimge

against Polio.,

depositors.

J Incorporated j

A year ear¬
were $69,497,247

banks, paying these depositors 3% to 3%%, and savings
& loan associations, often providing even better yields, were totally
unprepared for what followed. They suddenly found themselves
besieged by customers who wanted to switch their nest eggs into
the 5% Treasury notes.
Nor were these people small depositors,
for the notes were sold in $1,000 units.
And they were hardly
worth going after unless the customer was prepared to buy in
multiples of $1,000.
So these, by and large, were not small

1925

selected

and

$63,890,455 and $32.65

Sept. 30.

the

The

fund investing in a

lier

the tendency of U. S. obligations

{;■

to fluctuate."

Investors

of securities

about their tax bracket

knowing how to go about buying these 5s than in anything I had

Shares outstanding
403,206 from 305.140.
•

General American Investors had

tell you I did nothing to
be more interested in

ago.

year

rose

whether they should buy these 5% Treasury notes, which

to know

announced

Sept. 30 net assets were $7,462,730, or $18.51 a share, compared
with $4,808,765 and $15.76 a share

Street's

EITHER PROSPECTUS

M^frh

Fund

Energy

of Wall

one

■

long time to come.

For the manager of

A mutual

Gerald

dispute, discovered a new topic last week. The phe¬
some 100,000 people scrambling to latch onto United
States Treasury notes not only was something for Wall Street to
ponder, but will inevitably influence the thinking of market men

Prospectut from your dealer or

Securities

European

Sept. 30 net assets
per share of $34.32, against $33.90
a year; earlier.
A; ' *
',',r
reports

labor

nomenon

list

com-

share at

Geo. C. Textorfor
Named
Go-Chairman
of

ESTABLISHED

This

share.

with $30,842,224 and $36.04
Sept. 30, 1958.

pares
a

Incorporated

totaled

assets

net

equal to $41.58

american

135 S. La Salle St., Chicago 3,

that at Sept.
$35,584,909,

Abacus Fund reports

ROBERT

Thursday, October 15, 195$

Volume

190

Number

The Commercial and Financial Chronicle

5890

(1603)

the

dollar.

American

Continued from

despite

gold;

the

outflow

gold

feed

will

itself, and the authorities will

have

to impose an
embargo on
gold, which in effect would lead
to

a't

home

sharp rise in the gold price
and

The

abroad.

risk

such

come

particularly acute, it is held,

course

will

events

be¬

when the American economy

periences

another

drastic

and

ex¬

perhaps

since this
is likely
to create a favorable
climate for currency devaluation
as
a
means
for stimulating
re¬
covery.
•
"•••' 'V f
recession,

(

substantial

opinion

stresses

of
that

Government

offi¬

however,

United

States

cials of both

firmly

body

politicah parties are

record

as
opposing a
change in the gold price, and that
the United States cannot, in the
foreseeable future, be pressed into
a

position where it must devalue

against

will.

Despite a gold
almost $3
billion in

its

outflow

the past IV2

payment of
$344

and the recent

years

gold subscription of

million

International

the

Monetary Fund, the United States
gold reserve is still huge, com¬
prising close to one-half of the
monetary gold stocks of the free
world, and the United States is
thus in position to withstand a
gold

outflow
for

year

$1-2

time

some

billion

addition, the gold reserve cover¬
age
of Federal Reserve deposit
and

note

liabilities,

currently

about

40%,
still
exceeds
the
statutory requirement of 25% by
a
sizable
margin; moreover, in
the

event

the

statutory

well

sustained

financial

the

Finally,

the

could

without

lowered

settling

pressure,

requirement

event

un¬

system.

emer¬

gency, there is a further bulwark
in
the
resources
of
the
inter¬
national

financial

institutions,

especially
the
Fund.

including
national

Inter¬

the

decline

gold

stock

than

the

represents
of

"maldistribution"

would

expect
able

unilaterally

ing

few Europeans
the United States

event,

any

devalue

price

domestic

the

of bring¬

means

dollar

the

level

the

industrialized

postwar

era' has
a

which

contributed

has

uptrend

level

the

over

agreed

belief

that

tendencies

and

price

other

leading

make

amenable

the

increasingly

balance

troublesome

problem would
States

inflationary

payments

the United

difficult

also,

price

sterilize.

inflationary
effects;
conditions of gener¬
business,
an
inter¬

under
active

ally
could

not

fail

prices

world

kets.

The

lead

international

economize

mar¬

financial

the

international

contention

The

should

price
of

the

raised

gold

the

elsewhere

and

States

United

that

standing in certain
abroad, particu¬
larly in areas with a large gold
output. As such, it has cropped up
repeatedly since the end of World
War'II, and has been advanced on
various occasions long before the
one

long

circles

financial

start

the

from

the

1958.

current

United

major

gold outflow

States

early

argument

pounded in favor of

pro¬

higher gold

price

is that world liquidity is
being squeezed by the failure of
the monetary goid stock to ex¬
pand in line with higher output,

and

that

the

monetary

value

gold hence needs to be raised in
order

meet

quirements
the

part

the

for

increased

gold
a

reserves

growing

re¬

world

gold
so

has

that

Also, the cost of mining
advanced

considerably

higher price is needed

rather

but

other countries

windfall

the

world

would

trade

enhancement

international

restoring

that

attractive investment values

adverse

available in Europe than in
high-priced American market.
From time to time, major finan¬

suggest that the balance of pay¬
ments may continue unfavorable

in¬

receive

abroad

concerning the acquisition of gold,
but such inquiries appear to be
sporadic and are not followed by
action to any significant extent.
Thus,

there

abroad

indications
flight

are

important

any

rious

the

thought, which
most financial,

Europe.

to include

experts in Western

cannot be
sponsors
of
a

the

price

gold

internationally
their number not
vocal
advocates but

some
some

keen

very

acute

and

Realistic

Against this background of con¬
flicting views and forecasts, it is
essential to retain perspective and
seek

balanced realistic

the

United

appraisal
standing of the

current

States dollar. To

ex¬

some

time, as bankers to the
free world, we cannot ignore the

litical

the

States dollar

United

only major currency exposed
monetary pressures and an in¬

flationary trend. In some quar¬
ters, there is anxiety concerning
the future of sterling in the event
of a Labor victory in the forth¬
of

defend

Labor

sterling, the budgetary and other
economic policies expected of a
Government

Labor

to
raise doubts about the outlook for

sterling

appear

the long-term. Cau¬

over

tion

long

than the past

strengthened
various

has

development
our

the
to

end

world

the

World

War

benefit

this

aim

and

payments

favorable turn

various other

over

currencies in Western Europe.

point of view of

help retain perspective, it would
be a disservice to deny that the
the

record

recent

years
as

United

has

States

been
as
those of some major
not

toward monetary stabil¬

progress

ity

have

and

toward

home,

made

far

little

too

As of

"dollar

same

would

extreme,
but
situation

and

earnest fashion

as our

be in¬
sliding into

shall

risk

the

serious

inflationary

today, to speak

problem"

abroad,

curring

have

face up to our

friends

progress

containing

tendencies.

Here

the other hand,

toward

successfully

moved

convertibility.

difficulties

has i;aken an unwhich raises some

time

and

common

continue to observe
developments

they

United

States

and

freely

their

arouse

dollar

imminent

without

There

problems,
dollar

substantial

widespread

little

loss

affairs.

Without
fears

crisis

appear

foundation.

evidence

be¬

;

any

confidence

the

United
known

well

discussion

extended
In

required to sustain

are

that

matters

concern.

The actions
confidence

express

States
that

the task is to keep
purchasing power of
currency.
This means a fis¬

essence,

cal

the

policy which will achieve sub¬

stantial
riods
the

budget
active

fair

United

surpluses
business

pe¬

offset

large budget deficits that in¬

States

leading

dollar

the

temptation

bias,

money

that

toward

the inevitable
inflationary

with

Equally impor¬

Treasury debt

man¬

be so conducted as to
avoid the inflationary increase in
agement

resulting

liquidity

from

pro¬

gressive shortening and monetization
of the
debt, which is the
exact opposite of the policies now
imposed

the Treasury in

of the refusal of Con¬
raise the interest rate
ceiling on new bond issues. Last,
but
certainly
not
least among
these major essentials, are wage
practices designed to restrain per¬
petual
increases
in
production
costs, and pricing policies that
will enable passing on to
con¬
sumers part of the benefits of ris¬
sequence

gress

ing

in the form of
prices. In this fashion, we
not only be fortifying our

productivity

lower

shall

instead

However,

dominant free
dollar

key

now

currencies

national
whereas

the early

economic

free

cognizance of the changed situa¬
tion
regarding
our
balance of
payments.
To some extent, our
exports
are
still
curtailed
by
trade
restrictions, including the
special barriers against shipments

being 'the
unit, the
among several

markets.

international

policies, too, we shall need to take

economy.

in world

the

currency
one

the
inter¬
Moreover,
postwar era

from

our

the

dollar

area.

With

the

improvement of Western Euro¬
exchange reserves, such re¬
strictions can no longer be justi¬

pean

compe¬

tariffs,

higher

restraints

trade

en¬

renewed trend toward

worldwide

scale; on balance, this will do us
considerably
more
harm
than
good.
Finally, it is essential that we
reappraise our policies of Gov¬
ernment loans and grants for for¬

In the light of our
payments, am¬
for increased foreign
unrealistic; likewise, the

eign countries.

current balance of

bitious plans
aid

are

time

has

policies

re¬

Increased invest¬

strain

the

add

the

of payments

balance

transfers

the

our

with

encouraging private in¬

vestment broad.
ments

reexamine

come

spect

at the time
being made;

are

if the investment con¬
establishing productive
facilities abroad, it poses the pros¬
moreover,

sists

pect

made

further
our

upon

surplus

export

inroads being
already meager
these facili¬

once

ties come into production.

there

Unfortunately,

few

are

yet that we are giving
these problems the attention they
deserve.
Having enjoyed a com¬

signs

fortable foreign trade

position for

great many years, it is perhaps

understandable
luctant

that

are

re¬

adapt ourselves to a
environment.
The

favorable

less

discipline of the balance of pay¬
become much
more
stringent before" we agree
ments may have to

accept the

implications* of the

state

current

affairs

the

world economy.

Now H. W. Johnston Co.
SARATOGA

SPRINGS,

Y.—

The investment business of H. Wil¬

liam

is
the firm

423 Broadway,

Johnston,

conducted

being

under

of H. Wm. Johnston & Co.

name

Form Lefferdink Co.
(Special to The Financial Chronicle)

SAN

Cal.—Leffer¬
engaging in a secu¬

FRANCISCO,

dink & Co. is

rities business from offices at

159
are

Walsh, President; Hor¬

ace

Officers

Street.

Sansome
James

Vice-President;

Homes,

Neil C. King, Treasurer.

and

Toole Opens

Office

(Special to The Financial Chronicle)

con¬

remains

the

couraging

easy

toward

credit expansion.
tant

quotas,

the consumer but shall

evitably appear during economic
means abstaining from

the

currency

tition

declines. It

that

conclude

to cope with foreign

try

necessary.

ability

summarizing these trends, it

superseded by any other currency.

economic

and

closely
in the
them¬

current

selves

that

seems

conduct

our

Prudence

dictate

sense

Recognizing the Consequences

on.

important questions! regarding the
of

financial—in the

prospects for sustained economic
expansion at home, but shall also
be
enhancing
our
competitive

moves

world, and there is no visible
prospect so far of the dollar being

Nevertheless,
littling these

well

our

soundness of the dollar.

stimulus

While these considerations may

entire

addition, of
the United States balance

economy.

course,

the

cur¬

Political uncertainties also

in the

been

country's

shadow

the

involved;

international

the

cast

unless

foreign economic policy sin^?
be

Europe, which has
the position of the

currencies

suc¬

rency.

improvement

economic

Western

until

reflects

ago

years

material

time that more

solid

exaggerated

few

few months of

confidence

dollar

abroad

the

cessful reform will be required to

held

also

apparent

and

tent, the indubitable decline in
the singular esteem in which the
was

our

Nor

foreign countries. Most European
countries
have
made
striking

Appraisal

redress

the

dollar.

from the

favorable

observers.

will

political and
economic partners, and the hold¬
ers
of dollar assets.
They have
a
large stake—economic and po¬

reestablish
are

school

appears

However,
that

the

there

among

only
also

better

this

same

the

se¬

balance of payments situation. At

ing for

certainly

matter of

either

action which

ate

France

have

reserves

foreign
creditors or to Americans, pro¬
vided we follow sensible policies
here at home and adopt appropri¬

to be

our

tremendous, and further

concern,

is of unknown size but is believed

adherents

con¬

gold

our

losses need not be

still

the United States

if we in

ever,

Governmental

Assuredly,

stable

pressure

reserve.

our

argument;

period, with

further

demonstrating a greater inclina¬
tion toward protectionism.
How¬

only be raising the cost of goods

were

foreign producers, equipped with
modern plants ana enjoying sub¬
stantial advantages in labor costs.
Moreover, the factors at work

extended

of the labor unions are also

some

dollars

by, among others*
a
large export surplus. Now, how¬
ever,
the
export
surplus
has
dwindled, and American industry
faces increasing competition from

time, we shall have
to be on guard against the pres¬
sures already building up to erect
greater trade
barriers here at
home.
In view of the rising tide
of imports, it is not surprising
that
many
American companies
are
urging
greater
protection
from
foreign
competition,
and
same

substained

investment,

cushioned

for

"•

At the

restrictive practices, we shall not

American

and- we
should
certainly
vigorously for their re¬

moval.

informal arrangements and other

abroad, together with
foreign

fied,
press

Government
expenditures

and

are

centers

interna¬

large

loans,

grants,

inflationary history of
has
been
so
disappoint¬

the

cial

time

first

balance

result

ficsal

balance, the opponents of

the

are

quiries from United States sources

along the
successful
of their

tional payments. For many years,
the effects of the outflow of funds

appraisal of the French franc; the

general increase in the gold price

for

Today,

gold

feeling

health

decades, the United States is be¬
ginning to feel the discipline of

economies

the

currencies in recent years.

sequent

and

proceed

path that has proved

purchasing
power of the Soviet gold output
and the Soviet gold stock, which
fairly substantial.

continue

growth prospects of the European

decision

economy.

dollar

desire to share in the attractive

coming election; despite the stated

of gold without releasing such
inflationary potential. Finally,
rise in the gold price in the

scale, leaving the exchange rela¬

unaltered.

the

to be not

seem

use

count

tionships between the dollar and
other key currencies substantially

distrust
a

the

but

years,

higher

organizations, it is pointed out,
provide
ways
and
means
to

which

currency

commodity

interest

motivating forces

national devaluation of currencies

would

effect, this would be a
devaluation on an inter¬
national or practically worldwide
join.

Rather, the prospects would be
such a paper profit to be ex¬
pended for various purposes, with

consequent

common

American

equities has
ably
in
recent

only fairly

sure,
it is a
knowledge that
in
foreign
increased consider¬

offing.

matter of

for

denied

of gold in
countries

the

assumption that the major coun¬
tries
of
Western
Europe
will

into

into gold. So far, however,

followed
at home, United States economic
policy today must be based on the
policies

movement

securi¬

made

strong regard¬

appear

the

dollar

sign that any such
movement has developed or is in

create, for the treasuries of
the various countries, a "profit"
which, as a practical matter, it
would

dollar

large-

the

foreign currencies

there

the

years;

ties,

would

increase

not

of Americans them¬

part

accompanied

movement out of

into

recently have a good many coun¬
tries
been
able, through credit
policies and other means, to come
to
grips with this- problem.
A
higher valuation of gold reserves

lent

scale

the

selves,

surfeit of liquidity,

worldwide

seem

markets.

world

been

shortage but

with

generally

countries

perhaps the great¬

loss of confidence in the dollar

that other ex¬
porting countries would not stand
idly by. Rather, the more preva¬

line

activity around
the
world.
More
importantly, it
is emphasized that a general in¬
crease
in the gold
price would
create
a
serious
inflationary
potential
on
an
international
scale.
The
problem
troubling
most

that

have

Europeans

est risk in the current situation is

investment

and

astute

observed

gold,

the

abroad

weakness

economic

less

their

and

Several

former

and
that even today the amount of
gold held by the United States is
probably disproportionately large
compared to the volume of trade

provide

Price

Gold

rising trend
suggest
no
real
apprehension
abroad
that
a
change
in
the
American gold price is at hand.

the

has been added to these

holdings

States

United

correction

$1 billion. So far in 1959,
further, albeit slower,
outflow, another $1 billion
a

assets, which now aggregate some
$16 billion. Both the size of these

important,
thoughtful, and very considerable
body of opinion points out that
accepted.

important
of the

and

too, however, this line of
thinking is by no means univer¬
sally

over

gold

encouraged.

Here

United States and

Monetary

Problem

come.

and

1958,

losses for

short-term dollar assets increased

gold production is to be main¬

tained

gold

were

■

page

Even

when
time
running at an exceptionally
rapid rate, foreign holdings of

Accepting the Discipline of
The Balance of Payments

SAN DIEGO,

Toole

business

cific

Calif.—Raymond S.
a
securities

conducting

offices at 4430 Pa¬

from

Highway.

In Investment Business
(Special to The Financial Chronicle)

LAKEWOOD,

Calif. —Walker &

Lee, Inc. is engaging in a securi¬
ties business from offices at 4100
Belflower Boulevard. Officers are
Robert K.

Witt
R.

Walker, President; De-

and

Lee, Vice-President;

P. Shepherd,

New

Treasurer.

Klugh Branch

CLEMSON,

—

Klugh

Company
Inc.
has
opened
a
branch office at 330 College Ave.
under

Mildred

the
G.

direction

Mrs.

Wyman.

Joins Ross, Borton
(Special to The Financial

Chronicle)

Ohio—Harry R.
Gardner has joined the staff of
Ross, Borton & Co., Inc., The 1010
CLEVELAND,

Euclid Building.

The Commercial and Financial Chronicle

"28"

household

Current Business Trends

equipment

sales

how

far

And the Overall Outlook
of

Continued from page 3

though I would fuuy expect it to
exceed the last peak of $48.3 bil¬
lion

Industrial capacity is now more

adequate
than
in

was

to output
in 1.955 and 1956, and

relation

actually excessive,
consequently there
is now less
urge to build additional capacity.
On the other hand, increasing at¬
cases

some

tention is being given to moderni¬
zation

and

improvements

tor

increasing
efficiency.
Including
this element, I believe that the
forces

pushing

tures

sufficiently^

are

strong, to keep the .trend rising at
least through
I960. This doesn't
necessarily mean that business in
general will continue to expand
through 1960, since capital expen¬
ditures usually don't turn down
until after business in general has
started

decline.

range

there is

Housing and

Thursday, October 15, 1959

Formation

Next I

residential

private nonfarm

construction.

business capital

Unlike

expenditures, this

element in the economy that

tends

turn

business

since

down

than

sooner

mid-1958

has

been

recovery

induced

largely by the increased quantities
mortgage money that became

during the recession and

various

Federal

that

1958

mer

actions

taken

Government

in the

the

sum¬

facilitated resi¬

dential

financing.
Private
nonhousing starts were at the

farm

going

Autos

autbmobiles and household equip-

1,357,000 in the next
These

rates

exceed

the performance for any previous
full year, including even the year
1950 when private nonfarm hous¬

ing

starts

mark of

reached
decline

High-water mark
siderable
since

high-water

1,352,000. The subsequent

substantial

1950

from

was

part

the

that

due in

gyrations in the automobile
business m the past several years

reduction

annual

number

marriages. This drop in mar¬
riages
was
the
delayed conse¬
of the reduction in births

the

depression

period

the

1930s.
The

decline

mation

has

household

its

run

for¬

be¬

lieve, and the trend should be

up¬

ward

from

probably

now

course,

although

on,

than

moder¬

ately upward for the next year or
two. It is likely that the present
rate

increase

somewhat

less

households

than

year. The market for

1,000,000

is
a

urban

new

housing
not

is of course generated
only by increases in the total

number of families in the

country,
including

but also by other factors

particularly the shifting of fami¬
lies from rural to urban

areas and

the replacement or destruction
old urban

housing. There is a real
however, whether all

question,
factors

combined

will

fully

susr

tain

a
construction rate of nearly
1,400,000 private nonfarm housing

units

40.000

year

housing

addition

50,000
and

crease

the

units

tions

some

considerable

number

Also

in¬

trailers

under

the

condi¬

tighter money that
prevail, the flow of funds into
idential

mortgages

slacken

somewhat.

erations make
residential
further
I

and

down
fore

now
res¬

tending

These
doubt

consid¬

whether
will

rise

during the present cycle

the

construction

rather

expect

turn

the

1959.
list

construction

agencies.

1960, if not possibly be¬
end

The

us.

impetus
of extensive model changes, vig¬
orous selling tactics\and easy-pay¬
ment

nondefense

under the

1955,

these high

partly

shot

Aftcd*

7,000,000.

over

sales

such

terms,

above

the

total

increase

the

whole

sales

the

been

have

due

sold in

were

The

1959

year

CHANGES

first

half

than

30%

half

that

the

and

4th

1948

1st

+ 3.3

2nd

for
in

expansion

this

the

fall

inventory factor
adverse influence

omy

prior to

cumulation

1st

tl\e

1st

1952

+ 5.1

4.6

2nd

around

1960

5,000,000.

would

lsl

1955

2nd

being scrapped is

cars

probably

than

and the further fact that the

ber of
1949

cars

and

5,000,000
rate
to

sold

1950

1st

2nd

3rd

averaged

about

tional demand for
The other
consumer

goods

create

car

addi¬

equipment
amazingly steady in recent

recent

recession.

This

;

purposes
for the

now

1933

1926

Aug. 1929

May 1937

■

Feb.

1945

Nov. 1948

1949

July

1953
"

-Tak1

+10.4

Aug. 1954

July

1957

Apr. 1958

CERTAIN

KEY SEGMENTS

.■

35
•

PHASES

THE

ECONOMY

Included
Private

U.S.

Non-

Consumer

in consume!1 >

purchases of durables

Change

national

Private

resi¬

defense

pur¬

Total

Auto-

House-

defense

capital

dential

public

chases

business

mobiles

hold

pur¬

expendi¬

construc¬

construc-

inven-

fore-

and

Year

Qtr.

chases

tures*

tion*

tion t

durables

tories *

going

parts

1956

$41.0

$45.7

$17.6

$11.1

$37.7

+$4.0

$157.1

$15.0

$17.1

4th

42.1

46.8

17.3

11.3

39.4

+ 4.0

160.9

16.5

17.7

1st

43.7

47.5

17.1

12.1

40.3

2.2

162.9

17.3

17.5

44.9

47.7

16.9

12.3

40.3

+ 3.6

165.7

16.7

17.3

3rd

44.9

48.3

17.0

12.2

40.9

2.7

166.0

17.3

17.5

4th

43.9

46.7

17.1

13.3

39.7

160.1

17.1

17.0

1st

44.0

42.2

17.1

13.1

36.9

6.9

146.4

13.6

17.1

2nd

44.3

40.3

16.9

12.8

36.7

5.3

145.2

13.5

16.6

3rd

44.5

39.6

18.0

13.4

37.1

3.4

149.2

13.2

17.3

4th

45.3

40.6

19.9

14.5

39.8

160.9

15.9

17.4

1st

45.8

41.7

21.9

15.4

41.3

+ 6.1

172.2

17.2

17.3

2nd

46.2

43.9

23.1

14.5

+1.1

+10.4

182.2

18.8

ment

3rd

17.6

billions #

..en

■

1957

J
.

■

1958

equip- J

1959

steadiness

•

and

only a minor part
equipping of new house¬

Producers' purchases of durable equipment plus all private construction other than residential shown in the table. Such purchases and construction
consist mainly of business expenditures for plant and equipment, but include oil and gas drilling, purchases of farm equipment, all farm construe*

for replacement

In terms of prices
current in respec-

tive quarters.

+ 6.1

annual
rates

years,

reflection, I think, of the fact
purchases of household
are

1927

■

3.4
+

1st

adjusted

little in the

that most

durables

Oct.

1924

1923

equipment.

I, sales
have
been

dropping down only

May

1921

1920

Seasonally

durable

Such equipment includes the en¬
tire range of household
appliances
also furniture. As shown in
the last column in Table
such

5.8

RECENT TRENDS

and

2nd

principal category of

household

Jan.

Oct.

-1
6.9

3rd

cars.

purchases

Aug. 1918

A'"'-

2nd

number of families in the country
in the number able to afford
one

1914

Oct.

1st

4th

and

than

June 1938

—

1959

any

under sales. Increases in the total

1913

Mar.

4.4
4.0

2nd

years

5,000,000 would tend
pretty solid underpinning

Jan.

+ 4.0

4th

around

put

1912

Nov.

+ 6.2

\ +
\ +

4th

num¬

Scrappage at

1910

now

in the years 1948,

a year.

Jan.

July

+ 6.1

+ 5.7

this opinion, I am taking into ac¬
count the fact that the average
age

May 1907

July

+ 6.7

1956

I
1

+ 4.4

3rd

expressing

Sept. 1902

4th

1900

Mar. 1919

2.1

4th

1958

18
24

2.7

3rd

now

1895

Dec.

2.6

cars.

Dec.

June 1899

■

Jan.

\ 1st

1957

1893

+ 3.1

4th

are

Jan.

1
I

1890

Aug. 1904

+ 2.5

3rd

1887

July

June 1908

+ 5.3

1st

2nd
-

Mar.

2.2
+ 4.3

4th

1954

in months

Dec.

2nd

1953

Culmination

+ 4.9

3rd

reaching the scrappage heap in
large numbers and I wouldn't be
surprised
if total scrappage of
in

household

equipment -'expand only mildly,
then
the, strengths
inherent iii

June 1897

+ 2.7

cars

con¬

declining

June 1894

+ 3.6

passenger

sales

+10.2

ing

are

develops

May 1891

1.7

+ 2.2

cars

factor,; residential

and

trend

Apr. 1888

+15.2

4th

1st

postwar

+10.5

2nd

older

; •;

expectations

PERIODS OF BUSINESS RECOVERY AND EXPANSION

+ 4.9

3rd

The

neutral

struction

lower rate of accumulation has

+15.0

2nd

sales

old

ac¬

fact, however, that a change from
a
higher rate of accumulation to

+ 4.9

other helpful influence is the ris¬

•,

and defense spending.proves to be

econ¬

from

reduction.

right in

5.3

3rd

1951

three

rate

the

If I

+ 2.5

4th

major com¬
panies. This will provide stronger
competition to foreign cars. An¬
scrappage

changing

become

can

May 1885

—

2nd

smaller

the
an

expand."; .A->;V

generally realized that

5.3

3rd

although

introduction

activity^ continues

It is not

—

1st

1950

1955

models

business

•

Beginning

3rd

likely

inventory accumulation lasts may
well determine.how long general

swinging back

forth.

a faster pace, How long this
rising, trend".in the rate of

2nd

prospects

in the habit of

+ 4.3

1st

not back up to
peak. One helpful factor
keeping sales pointed up is the

the
in

further

1960

the

be at

inventories

in the steel
out of the way, ac¬
almojst certainly will
troubles

+ 6.1

4th

around

that

business.

new

and

are

cumulation

produces

that

the

industry

con¬

dollars

3rd

5,750,000 if
operations should
be
re¬
sumed at an early date.
think

artificially
high be¬
buying in antici-,pation of the steel strike. In the
third
quarter accumulation was
undoubtedly at a lesser rate. As

+ 5.1

1949

steel

other

impact on

inven¬

Duration

the entire year

total for

will

the

+ 1.4

increasing

seems

Table II shows

from

4th

ditions

increase

of advance

consum¬

of the

one

course

cause

soon

receiving from

tremendous

being in¬

are

rate

tories in the first half of 1959 was

the

reverse

:
two
quarters
in
(following the steel strike'

The

goods is be¬

the

A switch from

ers.

INVENTORIES

1947

later

were

When

turned

Billions of

S.-madi

Sales

year

BUSINESS

Qtr.

above sales in the first

1958,

the

1959

business.

factors

Year

has produced a
upturn
in
the

welcome

key

$35.8-billion,

market.

our

than it is

was

re¬

creased, the pipeline is delivering
a
greater demand to producers

$146.4-billion in the first quarter

imports of foreign cars. In 1958
approximately 365,000 foreign
cars

there

column

by governmental holds. The
predominantly replace¬
This consists primarily ment character of
the demand for

the

not

true and inventories

important such
changes
illustrated by com¬

although minor extent, these
clines

out

in mid-1952), and after five quar¬
ters in 1954-55.
;
'
'
-

pipeline
getting through to the

producers.

are

19^7 sales

In both 1956 and

and

paring the figures in Table I for
the first quarter of 1958 and the
second quarter of 1959, As shown

that

js>f

expense

for

satisfied

be maybe

sales in 1955 fiad been

ultimate demand

1959.

being

the rate

quarters' in
six
quarters' in!

after

that part of the

means

"...u-i.

record

after

1952-53

and

other

four

1947-48,

pipe¬

producers

ing

inventories.

the

accumulation

after

down

the

find that

1950-51,
the

of goods arc

duced, this

How

between

tlie'total

shrinking

over *

inventory

the

Table

1959.

inventories

consumers

list except the one
which, from a short-term stand¬
point, is frequently, by a wide
margin, the most important of all,
and
that is changes in business

year

ewdent

became

line

Looking

accumulation

of $10.4-billion

quarter

When

covered all the fac¬

now

inventory

rate

second

new resi¬
can
hold at

over

the

plus

in Business Inventories

dropped under 6,000,000. Sales in
1958
slumped
again,
dowrV to
about 4,300,000. To an
appreciable

public

being used for all-year residential
purposes.

all of

well known

tors

can

The

con¬

quence

Table

1.960

I have
'

the last two

shown in

ment\as
columns

automobile

and

Goods

Household

and

months.

The next succeeding factor is
consumer
purchases of durable
g<\ods, consisting primarily of

most

1959

the

raising

•

seasonally-adjusted annual rate of
1,401,000 in the first four months
four

cars

1958

whether

construction

Change

was

and

present

crease

gasoline tax will be helpful.

years.

vigorously upward. This
and
expansion was

available

program,

general, mainly be¬
cause
it is particularly sensitive
to
tight-money
conditions.
Its
trend

year

regardless

cars.

inventory reduction at the rate of
$6.9-billion in the first quarter of

high level make me
question whether sales of house¬
hold equipment are likely to ex¬
pand markedly. In fact I think
they will show only a mild in¬

at least the

the U. S. of U. lS.-made passenger

come

its

two, more or less
what general busi¬
ness conditions may be. Congress'
decision to keep the Federal road
next

$17.3~billion,
or
nearly
half, was due to the change from

-ist

the economy
things remain equal.

rise.

new

effect

the

output

such

considerations

question

dential

doubt that this uptrend

continue during

figures I shall use in alluding to
those gyrations are retail sales in

Household

the

relatively

These

crease,

not

basis.

$182.2-billion

can

they

amount

equipment

sewer

period. I think

the entire postwar

are

New

and

Spending for such pur¬
has been expanding with no
than brief interruptions in

poses

expendir

capital

upward

water

will

enormous

second quarter of 1959. Of this in¬

yet in need of replacement,
and
and in addition much of it is still
systems and includes a wide
being paid for on the instalment
of other governmental fa¬

schools

roaus,

cilities.

considerable margin.

and

1958

how¬

may,

only put a floor under
but also a ceiling on how

not

ever,

fast

(1604)

tiori, and construction of churches, nongovernmental schools and hospitals, etc.
4 Nonfarm only but
including additions
and alterations.

t Mainly highways,
schools, water and
sewer

systems.

•

This column and table 2 below reflect changes in physical
quantities in term3 of average prices during the respective
quarters,
rather than changes in book values as such,

)
f

Volume 190

capital

Number

5890

expenditures,

The'Commercial and Financial Chronicle

nondefense

public

construction and automo¬
bile sales may not be sufficient to

keep the general

pointed
upward very long after the rate
of inventory accumulation begins
to

decline.

recovery

and expansion is

much

three years.

not

record'does

now as

Our

Predicts Downturn

economy

The

(1605)

indicated

the

bottom

Table

JOHN

Governments

CHIPPENDALE,

III,

line," April

Reporter

Cavanaugh Treasurer
Of World Bank

JR.

is
the base from which the present
1958

period of business recovery and
expansion began. In the light of

The

rate of accumulation will continue

rising for

current

Eugene R. Black, President of the
World Bank, has announced the
appointment of Robert W. Cav¬

ury

buttress any expectation that the
than six quarters

from the base

established

during

the period of trouble in the steel

industry, and,
there

are

I have indicated,

precedents for

shorter

trends

and

historical

precedents, it is my opinion that
this
expansion will end, and a
contraction begin, some time

new

between

Rather

mid-1960

than

mid-1961.

and

speculate

period of uptrend in the rate of
accumulation.
Additionally there

the precise month in which such

change

the

question

the

whether

ac¬

cumulation that took place in the
first half of 1959 will shorten the

period subsequent to
tlement in which

rise at

steel set¬

inventories

accelerating

can

pace.

would

take

place,

well

may

to observe

velopments

ing that

they

indication

will

think

give

the

de¬

advance

turn.

know

this

nothing

better-to watch than the so-called

How Long the

Business Cycle?

leading "indicators.

eight

800

some

Table III shows the duration of
each

the

last

periods

business recovery and expansion.
If we take the median as normal,
24 months. This

We find that it is

that

means

there

were

many

amined

statistical

had

the

most

these

the

included

the

was

than

were

another

and

war

the Great

recovery from

Depression.
It is

advance

Prior

the

have

had

that the three

noted

three

indicators

consistent

down in

general.

recessions

postwar period,
trend of the eight
unfavorable.

was

watching for the next turn

think,

activity would,

periods subsequent to
World War II have been longer
in
duration
than
24
months,

careful
attention to these indicators. Their

namely, 37 months, 45 months and
35 months. The longest of these,

generally

completed

45 months, was the period which
included
the
Korean
War
and
therefore

abnormal
two

benefit

the

had

Even

should

two

regard

believing

normal,

start

Sept.

30,

Form

our

longer. Only time will tell

waves

whether this

theory is right. We
should
keep
in mind that the
completed postwar periods of re¬
covery and expansion
have had
the benefit in varying degrees of
forces which

than

weaker

end
an

are

thev

World

enormous

now

spent

were.

War

the

was

pent-up demand for

formed

business.

Officers

KANSAS

CITY,

offices

the

prewar

pe¬

accomplished

individuals, business
con¬
municipalities were in
good position to incur a great

riod,

cerns
a

deal

and

new

debt.

The

rate

Officers

equipment. Conditions now are
quite different. Shortages in rela¬
tion to established patterns of life
are
largely a-thing of the past.
Liquid assets are less widespread
and the entire private economy is
much more nearly saturated with
debt.
Family formation is at a
much lower rate than in the later

—

Jones

Government market.
billion

new

obligation.

favorable

influence

Issues which

money

were

the

rest

announced, rallied with the

new

the Bank.

doubt but that

substantial amount of

very

money

taken out of savings banks and
savings and loan associations,
well as commercial banks from
savings accounts, and these

was
as

funds
that
100
in

were

used to

available

was

purchase the 5% note due in 1964.
in

the

note

the

The

subscription

was

considerably better than the return which
savings accounts and Government savings bonds.

yield
of

price

obtainable

Accordingly,
it was not too
surprising that the small investor snapped up
$927,000,000 of the issue.' To attract individual investors the Treas¬
make

ury

allotments

full

paid for

were

up to $25,000 where
the day of the offering.

the

Great Boon to the
This

was

most

mate

•

Treasury
the

ultimate

investor

took

one-half of the $2,200,000 which was received in new
by the Government.
Sale of Treasury issues to the ulti¬

investor is what

the

money managers like to have happen,
especially during a period of inflation such as we have been go¬
ing through. This kind of financing does not result in an increase
in deposits or purchasing
power, so that the inflationary pressures
not added to.

The purchase of
Treasury issues by the ultimate
individual investors results only in a shift in
deposits

investor

and

the

not

creation

mercial banks

of new deposits as is the case when
buyers of Government obligations.

are

and

Assistant

William H. Gray

was

Co.

partner
and

member

had

the

Talcott

they believe the return is satisfactory.
addition, the putting of individual investors money into the
obligation in such a big way is considered by many money market
experts to mean that the fear of inflation appears to be
lessening.

SavingHype

by the forces of inflation.

investors

received

45%

the

total

they

put

and, since this was a somewhat larger amount than had
been expected by these
institutions, there was some minor selling
of 5s of 1964 by these holders.
Commercial banks received 8%
allotments and all others 5% allotments.
The success of the sale
of the new money 5s of 1964 is further attested to
by the fact that
the Treasury sold individuals
$927,000,000, saving-type investors

Treasury securities

pretty much to

York

The

the

commercial

banks

was

kept

market continues

tight

not

money

few

money

market

specialists

peak demand for funds will be

(Special to The Financial Chronicle)

the year.

CREEK, Cal.—Charles
L. Butler is engaging in a secu¬

note

Bank bond

World

issues

and

the

the nego¬

terms

other

and

conditions governing their sale in
the United States and other coun¬
tries.
In

with these

connection

Mr.

Cavanaugh

urer

duties

has

paid many
visits to investment centers, par¬
ticularly in Western Europe. In
1956, he was
appointed to the
additional post of Assistant Treas¬
the International Finance

Corp, Bond Traders
Holding Dinner
Corporation Bond Traders of New
York

will

hold their annual

din¬

at the Roosevelt

Hotel, Friday,
16, 1959, it was announced
by Paul Lane of Kidder, Peabody
& Co., the group's President.
V

ner

Oct.

Joins Marshall Co.

Marshall

Wis.
now

Company,

Joseph
with the
765
North
—

Water Street.

B. C.

Christopher Opens

St. Louis Office
ST.

LOUIS, Mo.—B. C. Christo¬
pher & Co. has opened a branch
office in the Security Building,
under the management of Robert
W. Sutphen.
S. S. Lending has
also joined the staff of the new
office.

Specialists in
U. S. GOVERNMENT

FEDERAL AGENCY

this condition, although

Stock

WALNUT

timing

and

Money Market Still Tight

C. L. Butler Opens

the

minimum in this sale of the 5s of 1964.

indications of any immediate change

New

financial policies of
closely
in arranging

officials

and

Potter

Exchange.

He also worked

other

ing public will do 'when

sale

formerly been

advising

with

MILWAUKEE,
Lemmer,
Jr.
is

than $11 billion of
subscriptions which the Treasury
the "magic fives"' was indicative of what the invest¬

$670,000,000 and commercial batiks $579,000,000. This again proves
that the inflation creating deposits
brought about through the

William Henry Gray passed away
Oct. 2 at the age of 69. Mr.
Gray

Department. In that posi¬
Cavanaugh was active

Mr.

(Special to The Financial Chronicle)

received for

tion,

com¬

Lessening of Inflation Fear Indicated
The

urer's

•

satisfactory and gratifying venture for the

Treasury since the small investor
nearly

subscriptions

serving

Chiefof

Corporation.
•

....

for

Secretary

1947,

the

since

the Finance Division of the Treas¬

tiation

Treasurer.

Cavanaugh

in many a moon.
evident from the start that the 5%
coupon was high enough
to attract the
savings type of money—that is funds which have
been going into
savings banks and Government savings bonds.
was

has

with

ated
W.

tors the like of which has not been witnessed

There is

Cav¬

Mr.

Bank

money operation of the
term issue, the 5% note

his

Sep¬

been associ¬

Treasury, particularly the
intermediate
due Aug. 15, 1964, really
caught the imagination of the investing public.
The demand for
the obligation brought
money to the Treasury from small inves¬
It

anaugh

sold down when the $2

new

until

1953

the

Bank

January

tember 1959.

Huge Demand From Small Investors
The

Treasurer

the

from

the

Cleo H. Perrin, Assist¬

and

urer;
ant

»,7-. v.'

were

further ravaged

T.
Jones,
board; Cliff C.
President; Alfred J.

are.

Riley, who

„

Street

the
Mr.

late Henry W.
was

death

securities business.

11th

Bank.

"magic fives" by the Treasury not
sizable price premium above the issue

Morton

West

Jr.,
Hoffman, and William W. Parrent, Vice-Presidents; Frederick
R. Freeman,
Secretary and Treas¬

family formation was getting
ready
to explode.
The
world,
and
particularly the devastated
regions, were hungry for Amer¬
ican
goods,
including
capital

Mo.

Treasurer

of the

They believe that the money of the small investor would not be
going into Treasury securities, even though the rate or coupon
be high, if they felt that the value of the
monetary unit were to

301

Jones,

immediate

only took this note to

price, but it also had

Plans, Inc. has been formed with

pacity. Liquid assets were wide¬
spread, and, as a result of the
been

Peter

are

sale

Chairman

and

Form Jones Plans

many
things,* including housing,
automobiles, household equipment
modern
manufacturing ca¬

war

offices

Feinberg, President; Alfred Kap¬
lan, Vice-President; and Abraham
Schutz, Secretary-Treasurer.

and

extensive reduction in debt which

with

Street, New York
engage
in a securities

to engage

had

The successful

are

42nd

or are

there

been

East

City,

Feinberg Sees.

Feinberg Securities Corp.

Cavana ugh

will

1959.

whole

by Mr. Land at his bank's
Correspondent Bank Meeting,

Tri-State

the violence

waves

succeeds .the

money

has

but also have made the

year

anaugh

are not in the
very short-sector of the money
it is evident that when issues are priced right
they are readily salable to the ultimate investor. This is a very
important development since one of the ways in which the forces
of inflation are dealt with
effectively is through the sale of Gov¬
ernment
obligations to investors, other than the commercial
banks.
Thus, there is no increase in deposits or purchasing
power in this kind of an operation.

mid¬

1959.

ter-century not only have reduced
the

after

*An address

have

that

the

Peter I.

1960

certainly be greater than

been introduced in the last quar¬

economy

downturn

the total volume of business done

the

that

stabilizers

general

automatic

Also,

the total volume of business

normal
periods of business
recovery
and
expansion?
Some
analysts accept the longer period
as

in¬

not

done

years or three years as the
duration

been

has

and

early change from
expansion to contraction.

almost

•now

1959

favorable

year,

about three years.
Should

dicative

pay

ran

each

periods

far

other

The

stimulus.

postwar

aspect

well

given

was

market.

Bureau

the

in general business
I

business

general

person

to be

nearly

turning

which

ex¬

Research, these eight
indicators, while not always in¬
fallible
either
individually
or
collectively, were found to have
records of

shorter

there

National

reception

of securities which

of Economic

months
periods longer than
24 months. Six periods ran for 33
months
or
more,
but three; of
periods

the

Out

series

favorable

the sale of the 5% note due Aug.
15, 1964, proves that the Treas¬
can still meet part of its new
money needs through the sale

along, expect¬

as we go

connection

now

tremendously

now

seen

Accordingly, purchases

being advised by certain

are

the

between

of selected

money

and

there

are

opinion that the

now

and the

SECURITIES

end of

Treasury issues

are

market followers.

rities business from offices at 1532
Mount

Diablo Boulevard.

1940s and the

only

early 1950s, and, if
increasing at all, is rising

With

moderately.

sistance

the

American

aid,

world has recovered from the
and

built

much

new

Form Carleton Sees.

as¬

the
war

industrial

COMMERCIAL

WASHINGTON, D. C.—Carleton
Securities Corporation has been
formed

well

wait

evidence before
normal

for

further

deciding th^t the

duration

periods

Crayne is conducting a securi¬

ties

busin^5" from

Atlantic

BOUND

FINANCIAL CHRONICLE

SET— FOR

SALE

with offices in the Wash-

capacity and is tending to reduce ington Building to engage in a
its
takings of goods from this securities business. Paul H. Smalcountry and increase its sales of done is President.
goods to us,, both of which in¬
fluences are adverse, at least in
C. E. Crayne Opens
immediate effect, to our level of
(Special to The Financial Chronicle)
business activity. These consider¬
ations suggest to me that it would LONG
BEACH, Calif. — Charles
.

AND

Ave.

offices at

6029

Aubrey G. Lanston

FROM 1028=1915

6c Co.
AVAILABLE

INCORPORATED

NEW YORK

CITY
20 BROAD STREET

Write

Phone

—

REctor 2-9570

Edwin L. Beck, c/o Chronicle, 25 Park Place, New York 7

NEW YORK
☆

CHICAGO

☆

■

☆

BOSTON

Commercial and Financial Chronicle

The

Thursday, October 15, 1959

(1606)

AS WE SEE IT
Continued

from page

and the world in the

that the concessions

demanded by

easily be granted without raising prices.
be the equivalent of saying that the bene¬

the workers could
This is taken to

granted would not be "inflationary"; that they
would be paid in the last analysis by the "millionaires"
who own the stock of the companies and they could easily
thus

fits

what they would be required to surren¬
der.
Whether by cunning design or not the unions by
making it all but certain many months in advance that a
long strike was coming, stimulated demand in the early
months of this year to a point where earnings figures are
for union purposes conveniently high. Of course, if one
wishes to form any sort of judgment about the volume of
profits available for paying labor more, one must go to
periods other than 1959.
But we shall not undertake here to present facts or

that

solutions

which

funds that
of
to

raise

are

.the

industry's

financial

position

dismiss

much

there

But

than that wrong with the

arguments that Mr. McDonald and the others put forward.
Suppose that the cost, whatever it turned out to be, of
additional benefits granted the men were simply deducted
earnings, who in reality would pay the piper? In
first place, the spokesmen for labor would do well to

from
the

forget all those multimillionaires who might have to dis¬
pose
even

of one or more of their yachts. Any one who has
a slight familiarity with the workings of the personal

income tax laws of this land should know without

told that

corporations

are no

being

longer, by and large, owned

not afford to own them. Their
after-tax income would be far too small. The combination

by such

They

men.

can

excessively progressive income tax schedules and states
municipalities which are eternally in the market with
their obligations has made the men of great wealth (so
far as they still exist) holders primarily of tax-exempt
obligations.

and

Since

something over half of corporate income is
taken by the Federal Government, Uncle Sam would be
by far the heaviest loser—that is to say the heaviest direct
loser. Every dollar of what otherwise would be profit paid
out to the wage earner in higher wages or other benefits
would be just that much reduced taxable income. Half of
the benefits paid by the companies would be offset by
tax savings. Now the Federal Government has to
get its
money from somewhere, and unfortunately as a result of
pressure by just such men as the leaders of labor, it shows
no inclination to make very substantial reductions in its
expenditures. A little more than half the benefits granted
the wage earner would therefore be contributed by who¬
ever

it is who pays

Now

over

taxes—and that is all of

something like half of net earn¬
ings, after Uncle Sam has taken his cut, have gone into
the payment of dividends. The stocks of these
companies
are
very widely held. Many hundreds of thousands, yes
even millions, would bear the burden of
any cut in divi¬

find

ti]ue

But

anticipating;

turn

now

has

let me
problems the

the

encountered

that

has

high

level

during the

passed

the

two

difficult years, but ten countries
have nevertheless drawn on the
Fund

Continued
Fund

from

international

current

transactions.

Instead,

consultations
the

need

for

which

Fund

retaining those re¬
these consultations,

strictions.

annual

had

the

with

1952,

since

have

countries

these

and

maintenance

for

commonly referred to
as Article XIV Consultations,
the
continued need for remaining re¬
are

has

strictions

been

carefully

scrutinized, and in addition much
attention

been

has

of their existing re¬
payments and trans¬

adaptation
fers

page

the

for

strictions

devoted

exploring ways and means
of
overcoming existing weaknesses
and
achieving external equilib¬

Fund

last

few

much

years

in the
this has
for adapting

progress has
been made
removal of restrictions; as

continued, the

scope

under

Article

XIV

steadily
diminished
for
a
number
of countries, who have
gradually reached a position
where legally the reintroduction
of
restrictions as
(distinct from
the adaptation of existing restric¬
tions) would require approval un¬
der Article VIII, even though the
themselves

countries

remained

formally

under Article XIV.
assumption of the
full
obligations of Article VIII
would mean that such a country
The

formal

willing to accept the require¬
approval of
the Fund for any remaining ex¬
change restrictions, and the prior
approval
of the Fund
for
the
adaptation of any such restrictions

was

ments that it seek the

for the introduction of

strictions, if this should
come

new

re¬

be¬

ever

necessary.

times

Several

question
XIV

the

Article

tween

has

been

the
be¬

past

relationship
VIII

and

Article

tries

which
have
swept
away
most, if not all, of their payments
restrictions will have seriously to
consider, as a practical proposi¬
tion, the question of a formal
transfer to Article VIII.

studies made in

Both the

the past, and

the
recently given to these
problems in the Fund—and also

attention
in

number of member countries

—have

shown that several

arise which need

its

and

clarification, and

important

definite

issues

that

before

action is taken
members

the

should

any

Fund

have

for

million.

which

fect

particularly
combined

useful

with

practical

review may be

solutions

problems—in this

when

the

for

current

the change

case

of status from Article XIV to Ar¬

ticle

VIII.

come

the

over

and

able

are

conform

requirements
main

the

full

Article

there is bound to be

and

years

countries

VIII,

preoccupations of the Fund
daily work. There will
need for financial assist¬

nine
of

with

the

for countries under Ar¬

level

fewer ~ countries

will

turn

of industrial countries.
of

Fund

elaboration

and

usually not difficult to tell what
need

the

ance

budget,

and establish

taken—bal¬

restrain

when the
fect.

program is

often

put into ef¬

reminded

Napoleon's

famous" saying, "la
economique est un art
simple, tout d'execution."
[Eco¬
nomics is a simple art; it all de¬
pends on the execution.] For the
successful
implementation
of
a
strategie

needed,

above

all,

are

conviction,

courage.

General
When

there

program

character, and

annual

stabilization

has

been

economic

diagnosis

proper

and

remedies.

the

How

mitigate booms
and
depres¬
sions; how best to combine eco¬
nomic

expansion with reasonable

stability;

how

ensure

proper

debt management;

how to allevi¬
through timely foreign fi¬
nancing, the strain in the balance
ate,

of payments of countries
engaged
in development; how to deal with

the

difficulties

prices

all

are

matters

which

arise

with

which

require

great

Directors Will Act Soon

the

rienced

are

programs

arrange¬

Fund.

Notwith¬

several

because

with

imple¬

difficulties

countries

have

maintained

menting
stabilization
supported by stand-by

expeT

these

low

prices
for their export products, and for
other reasons, they have generally
shown

great courage in pursuing
policies consistent with

domestic
the

aims

their

stabilization

programs.

the last Annual

Since
the

Fund

with

has

three

embarked

1958,

been

during

the

that

have

year

the

efforts.

Meeting,

associated

countries

stabilization

upon

In December

Argentine

Government

adopted a comprehensive program
supported by a $75 million stand¬
by arrangement with the Fund,
and

exchange and balance of pay>
credits, totaling $128.5 mil¬
lion, from other sources (the U. £f.
Treasury, the Export-Import Bank,

ments

d d i ti

commercial banks).

amounting
by

Bank

and

Loan

development lo a n s
to $125 million were

granted

the

Fund.

the

Export-Import
Development

Several

other

coun¬

tries which have put stabilization

into effect with

programs

from

ance

for

the

several

Fund

the

assist¬

had

already
experienced
expansion, and

years

rapid

economic
authorities

then

were

faced

mainly with the problem of en¬
suring! financial stability.
That,
for
instance, was
the
case
in
France.

Argentina,

the

other hand, the economy had been

stagnant for many years, and the
whole

when

country's main
declining—these are
a

relations

been

those countries which

was

the

consultations

Article

XIV, and in other
Fund has continued to
maintain contact with its member

by a considerable num¬
ber of countries, the problems that
arise—some old, some new—are
likely to be intricate, as regards
both

revolving

the

and U.

Objectives

achieved

finding of

truly

resources.

Through
under

ways,

credit,

realistic exchange
The difficulties usually arise

rate.

the

nature of its

standing

stabilization program, it is

measures

This story
emphasizes

transactions

again

once

the

then be made any easier—perhaps
rather the
contrary.
In dealing
a

Re¬

$435 million, re¬
large p>irt the im¬
provement in the reserve positions

with requests for as¬

implementation of comprehensive
stabilization programs. This is not
to say that the Fund's work will

with

in ef¬

are

ments

bal¬

open

moment.

about

flecting

naturally

Fund

total

present

countries..

VIII, since difficulties, often
unexpected
nature,
are
likely to arise in the future, as
in the past; but the day will come
an

sistance

$140

were

payments to the Fund during the
same
period reached the record

to the

about

$1,031 million

ticle

when

these

shift in the

in its

even

pri¬
producting countries. Some
of
these
drawings
were
made
under standby arrangements, of

to operate.

Such

total

Most

mary

ances

exports

clear idea of what is involved.

time

circumstances under which it has

considered

by the
Fund, but so far immediate ac¬
tion has seemed premature. Now,
with
the
adoption
of
external
convertibility, a number of coun¬

that the
to time,

good

from

most appropriate methods for its
work, in the light of the changing

stabilization

the

review its essential tasks and the

ance

the

Over

all

should

still be

rium.

us.

the years

the

since our
last Annual Meeting. Drawings on
the Fund have not been at the

has

Wrong

and

are

year

restrictions

balderdash.

arise,

interests of the member countries.

Fund

The claim that such demands as those

expert body always ready
consider on their merits th*>
:ons

problems

difficult to

too

inspire

making and fabricating of steel, and
from outside investors all the

replacement costs will decline very much in the future.
being made by the
steel workers could be paid out of profits without injury

largely depend

required for that purpose—and it would,
course, be all the harder if earnings were being reduced
reward unproductive labor.

get along without

figures which would bear on this alleged non-inflationary
effect of wage boosts. We are confident that there is com¬
petition in the field, both among domestic producers them¬
selves and from foreign steel makers. So long as that is
true unduly large profits by the industry as a whole over
any extended period of time would appear to be out of
the question. In any event, corporate profits in manufac¬
turing generally are overstated in these times since prop¬
erty is depreciated on original cost rather than on replace¬
ment cost—and there is no observable
likelihood that

will

the confidence it is able to

keep abreast of the times

exert

can

substantial reduction in this reinvestment could be

any

tolerated. It is too vital that

problem

made

difficult.

But

authorities
lines

rehabilitation

correspondingly
the

g e n t

n e

pursuing, new
policy, and their efforts
be receiving increasing
as
the public gradually
better understanding of

are

now

down" concept to condemn the steel

economic insight, and awareness
seem
to
of
political factors.
These
are
of vthisf
-support
question it will be necessary to problems which fall under Article
gains a
consider which members are in I of the Fund Agreement, which
the real needs of the country.
a
position
to
assume
the
full affirms that the Fund while pro¬
Mexico, which has a convertible
obligations of Article VIII; what moting
exchange
stability
also
should be the procedure and rules
has, among other things, "to fa¬ currency, has maintained a stable
rate for the peso since April 1954.
for expressing the Fund's views cilitate
the expansion
and bal¬
on
anced
any remaining exchange re¬
growth
of
international Early this year, in order to

not learned

strictions, and

dends that resulted from this additional labor expense—

since, of

course,

of stockholders

not only stockholders but the dependents
are

concerned in this matter. This is

one

of the essential facts which those who raise the "trickle-

all

too

many

industry either have
studiously ignore. It is likewise a fact that
of the rank and file seem somehow to

overlook it.

more or

would

examination

any

on any request for
the introduction of new exchange

restrictions;

how

regular contact

best be maintained with

can

Dividends Would Be Reduced
It

tries which

are

which, therefore,
quired to participate

and

appear,

moreover,

less have to be reduced

that

dividends, would

than

proportionately
.should earnings be curtailed in
any such way as is thus
indicated, for otherwise our production capacity would
suffer intolerably. Let it not be forgotten that that
portion
of current earnings not paid out in dividends is
put back
into the industry to keep it abreast of
rapidly developing
technology—and able, if it can, to carry the burden of
heavier and heavier labor costs. It is not
easy to see how

nual

Article

XIV

are

VIII,

not

the

number

would

an¬

Consultations.

revised

Fund

member

bring into force

G.A.T.T.

provisions

dealing with discrimination. These
questions require careful exami¬
nation

all

their

will be taken up

to the

ment

re¬ -of

addition, the change in status

countries
the

coun¬

under Article

and to contribute thereby .strengthen the country's position,
and especially to maintain confi¬
promotion and maintenance
of high levels of employment and dence in the currency in the face
real income, and to the develop¬ of some speculative pressure, the

trade,

aspects, and
by the Executive

Directors in the very near future.

the productive

all members

tives

resources

primary objec¬

economic

policy.*' These

should not be empty words.
that the transitional period
the

war

draws to

attention

general
Since

after
cldse, more
paid to these

its

should be

objectives

the

Now

decisive

the

Fund.

measures

are

Government
series

credit

measures.

those

taken

authorities in tlie individual

tries, such influence

the

coun¬

the "Fund

take

budgetary

and
support this

program, the Fund made available

$90 million in the form of
months'

stand-by

six-

arrangement,
Export-

and at the same time the

Import Bank extended
$100

million.

tained

generally

decided

new

$75

Mexico
million

agreement with the

ury.In March,

million

made

was*

credit of

also

main¬

stabilization

U, S.

Treas¬

drawing of $22:5
under

the

Volume

190

Number

5890

The Commercial and Financial Chronicle

stand-by arrangement with the
Fund, but soon after the program

provide

was

people

announced

capital began to
return to Mexico, and monetary
reserves
have since been rising-.
"The improvement in Mexico's po¬
sition

chase

reflected

two

the

weeks

repur¬

ago

the

July

to the

tion

1959,

Spain

Fund and to

for

European

operation

(O.

prehensive

presented
the Organiza¬
Economic Co¬

C.),

stabilization

com¬

program,

which included

budgetary reform,
credit restraint, and unification of
the exchange structure at a realis¬
tic rate, together with measures
for

the liberalization

of trade.

support of this program,
Spain
drew $50 million from the Fund
and

entered

into

stand-by

ar¬

rangement for $25 million; at the
same

ber

time, Spain became

the

granted

credit

basis for industrial and

mem¬

and

was

$10u million
Further¬
million were

flicted

often insist
and

of real

earnings. When that hap¬

mal
will

increasingly

diverted

real

tion

for without a

ings

obtained

five

balance

the

the extent to

banks).

(Important

borrow

already

been

and

dom

the

and

greater

free¬

of trade and

forced

payments, rein¬
reduction
in
dis¬

crimination, represent a marked
shift in Spanish policy, aligning
the
Spanish economy with the
economies

the
.

Western

other

advance

problems

May I
the

with

the

solution

countries

recall

last

that

annual

its

just

be¬

meeting, the

for Turkey.

program

tjons

have

tween

been

the

Turkish

and

officials

relabe¬

Ankara

have

of¬
and

been

re¬

ceived. in Washington. I am glad,
to
report that in the year that

country, itself very much
of capital, not only ob¬
further credit but may
be forced
to extend what

which

need

tains

even

to-credit

amounts

program, substantial

has

been

creation

Which

should

growth

environment

permit the healthy

the

toward

made

Turkish economy
of stability.

conditions

under

course

understood

that

when financial assistance is given

country by several organiza¬

under
so-called
''parallel
arrangements," each must form
its own judgement of the
ade¬
tions

of the stabilization program
proposed by the
country
con¬
cerned,
and
each
organization
quacy

must itself determine what

facilities

World

ond

willing to

credit

extend.

Problems in Economy's Correction
this

point I should like to
make a few general observations
on the problems which arise when
efforts

are

made

the

obtained,

restore

over-strained
external

Whatever

stabilization

bal¬

economy.

resources

are

implementation of
program designed

eliminate inflation will almost

inevitably be followed by a period
in
which
certain hardships are
nomic

dueed.
•

Korean

and

inadequate,

became

serves

monetary confidence was thereby

impaired.——
These three methods clearly do

provide a durable .basis for
growth; and worse than

not

sustained

on them is
later—and often

sooner

rather

than

later—to

crisis.

have

such

been

crises

some

tional

sooner

result

In recent years
instances

many

both

non-industrial

and

bound

reliance

that,

industrial

countries,

aggravated
factors, such as

addi¬

cases

excess

liquidity inherited from the
war,
sometimes involving large
claims in foreign hands.
What¬
ever
the cause of any particular
crisis, there have generally been
signs of inflationary tendencies,
accompanied by a loss of reserves.
Since a repetition of crises is an
intolerable state of affairs, steps
have before long to be taken to
stop
sition, and
put a
a

rule

to an unbalanced po¬
to restore confidence
these steps have been

taken with the immediate purpose
of

replenishing monetary reserves,
a
process which requires part of
the savings of the country con¬
cerned to be invested
to

in additions

reserves—savings which cannot
for the time being be

therefore
invested

bricks

and

mortar,

machinery or inventories at home.
Any country pursuing such a pol¬
icy has to pass through a phase
adjustment, during which eco¬

nomic expansion has, as a rule, to
expansion somewhat
re-. be slowed down; It is impossible
difficulties should, to frame economic and monetary

These

however, be set against the back-

ground of the methods employed
to
sustain the preceding expan¬
sion

which, nourished by inflation,

will

often

have

been

dis¬

torted character.

early stages of an inflationary
period.
So long as increases in wages
lag behind the rise in prices and
the public is willing to hold a
the

less

cash,

newly

normal

issued

policies that are perfect in every
respect all the time. An interval
of
adjustment,
when
required,
serves its purpose by providing a
firmer and

reliable basis for

renewed

Among these methods I would
mention, in the first place, the
"forced savings"
which usually
become available for a time in

the

experienced, and the rate of eco¬

•

War

policy of development by
drawing down reserves—but there
again they had to be careful not
to push this policy so far that re¬
upon

obtaining

crisis, accumulated larger reserves
they had before, embarked

there

than

monetary

ance

during the Sec¬

which,

passed since the initiation of

progress

method

third

Turkish

traders

countries.

other

the

to a

try begin to demand prepayment.
Thus
a
situation
is
created
in

has

limit

the

when

Moreover,

Turkey

Fund

year:

visited

have

maintained

Fund

throughout
ficials

the

long,

countries

cooperate

Fund and the O. E. E. C. cooperat¬
ed in the case of a stabilization

•

and""invent

this limit is soon reached.

nections

fore

short,

can

again the Fund has been

Once

O. E. E. C., which is able by virtue
of its special knowledge and con¬

area.

which countries

temporary resources is te make
use of monetary reserves.
Several

happy

limit

reached, exporters to such a coun¬

countries

World.

situations

There

arisen.

the strain

payments and
often been

has

critical

that

lion

pressures

reserves

amount

money

may

growth. It has been the
experience of several countries in
Europe, as elsewhere, that once
stabilization

measures

had

be¬

example of

a country firstly, by helping to sustain de¬
policy of ensuring mand for raw materials by main¬
balance ushered in a taining their own economic prog¬
a

true

that

production

for

time industrial

declined,

but

not

for

recent

months

tion has been

than in the

industrial

produc¬

running 10%'higher
period last year.

same

Denies Credit Inflation Is
;

Needed for Growth

Sometimes

expansion in

some

told

that

not have been at the rate

achieved

had

credit

though

the

countries would

not

actually

been

for

expansion

necessarily

re¬

which,

inflationary,

had in fact helped to finance part
of the investment.
It is of course'
difficult

tell'what would

have

happened under different circum¬

stances^ but

I have often won¬
dered whether progress would not,
on the
contrary, have been greater
if

attention

The

rials.

effective

use

materials, perhaps most strikingly
illustrated
by
the
tin
saving
process

had

the

of electrolytic plating, has
In addition,

similar effect.

substitution

materials,

raw

synthetics for
which has been
of

rapidly spreading in many of the
major branches of manufacturing
has
been of great importance—
the

use

synthetic
rubber, to

plastics, detergents,
fibers,
and
synthetic

After all, not all coun¬

tries of Europe

every

effort

G.A.T.T., and thus to all primary
producers which are contracting

parties to that Agreement.
the

second

may

year

comes

be possible to

When

round

agree

upon

it
a

similar arrangement, and, in view
of recent developments, parallel
action

might well be taken by the

new
group
of seven European
countries.
After all, Europe has

benefited

much from the rela¬

tively low prices of primary prod¬

introduce more

impact

should be

made to

effective methods

production, so as to render pro¬
more
remunerative and

duction

share of the market.

time when

foreign resources are
available, and the attempt is

not

made to obtain the funds required

their imports, and
to

produce

account

thus will tend
deficit on the current

their balance of pay¬

ments, which is to be expected in
such circumstances. The question
of

proper

relation

timing
to

the" will

mention0 just

immediate

The more highly industrialized
highly indus¬
Finland, whose exports countries have also their contri¬
largely consist of forest products, bution to make to the solution of
has over the last year or two been this problem.
They can do so,
are

maintained

ucts in the last three years that
a few. it might well extend some counter
of these benefits to the producers of these
changes is no doubt unfavorable products.
to raw material exporters, at least
Many of the raw material pro¬
during a transitional period, but ducing countries are exporters of
they are part of the technological only one major commodity, and
progress of our times.
for them in particular a solution
must be sought in the diversifi¬
Underdeveloped Countries
cation of their economies, not
least
in order to develop addi¬
Even so, these problems should
not be approached in a spirit of tional lines of exports.
Diversifi¬
cation, however, requires, as a
gloom and fatalism. Wise policies
can
undoubtedly help
to
solve rule, capital resources beyond
them.
In the first place, it is the what these countries can raise in
task of each primary producing the form of savings from their
country to see that its products own, often low, incomes.
Countries engaged in develop¬
are moving to the markets; so far
ment have, therefore, sought in
as it is necessary to give support
to producers, it is important that the past, and will seek in the fu¬
such support should not
be fi¬ ture, to avail themselves of for¬
nanced in an inflationary way, eign resources to supplement their
for this would
raise costs and own savings. The use of such re¬
make sales more difficult. Indeed, sources enables them to increase

The

effective, a revival of ac¬ so that the country in question
tivity set in. This is true of non- does not lose ground to other pro¬
industrial as well
as
industrial ducers, but is able to retain its
countries.

well

monetary

limited the demand for raw mate¬

expanding credit, the effect
generally be a combination of
inflation, import restric¬
tions, and a loss of monetary re¬
serves.
Even if the requisite for¬
eign resources become available
of the years of recession in the
at a later date, it is not always
United States, 1949, 1954 and 1958, easy to reverse the
primary infla¬
was there
any decline in the vol¬ tionary impact and to replenish the
ume
of primary
producers' ex¬ reserves. If monetary stability is
ports, and the purchasing power not to be endangered, it is, there¬
of these exports in terms of im¬
fore, important that investment
ports declined only in the most expenditures, for which domestic
recent
recession, though it flat¬ savings are not sufficient, should
tened out somewhat in 1949.
By be supported in good time by for¬
now the Western
European coun¬ eign capital. The coordination of
tries have for the most part passed the flow of capital
and^the rate of
through the recent phase. of ad¬ development expenditure is a task
justment which, for a number of important for both the develop¬
them, was necessary to enable ing countries themselves, and for
them to regain monetary strength. the countries that supply the ex¬
In the future they should be less ternal resources. The
problems of
affected by monetary problems; development require a balance of
this is of importance when it is responsibilities between those who
realized that the Western Euro¬ provide and those who
receive
pean countries as a group absorb
capital. All partners are equally
been

had been paid
more
than one half of the raw
stability, with the
materials and foodstuffs exported
added advantage that the progress
by the underdeveloped countries.
would have been achieved under
The recovery from the recession
more satisfactory social conditions.
in the industrialized countries has
After all, the great development
already gone some way towards
of the U. S. economy from 1870
easing the difficulties of the pri¬
onwards was not based on infla¬
mary
producers.
The increased
tion, and the rate of expansion demand
for many of their prod¬
was in fact as high in the
period ucts this
year has made it possible
of
slightly falling prices up to for them to increase the volume
1900 as it was in the years of
of their exports; and in the last
slightly rising prices that followed six
months, the general level of
up to the First World War.
primary product prices has shown
Over the last ten years indus¬ some recovery.
trial production in the
Western
Secondly, importance attaches
World has been expanding at a to tariff
policy and protection gen¬
rate of almost 5% per annum, and
erally in the industrialized coun¬
the volume of imports of the in¬ tries. Their food
production, often
dustrialized countries by 6%. On
highly protected, has risen despite
the other hand, the exports of the a decline in the
agricultural popu¬
primary producing countries have lation. Here is a field in which
risen in volume by only a little these countries could make an ef¬
over 3%
per annum, and the real fort
to
dismantle
a
number of
value of these exports—in terms
protectionist measures that are
of their power to purchase im¬
clearly most harmful to the in¬
ports—by just over 2%. In a large terests of the primary producing
measure, these developments have countries.
*
generally been the result of cer¬
Some words
should be added
tain technical
aspects of recent about
possible discriminatory
economic
growth. Thus
in the measures, which
are,
of course,
highly industrialized countries ex¬ always regarded as
particularly
pansion of output has been heav¬ unfair. When at the
beginning of
ily concentrated 'on more compli¬ this year the six countries of the
cated manufactured goods, such as
European Economic
Community
machinery, electrical goods, air¬ made their first reduction of tar¬
craft, etc., with a relatively low iffs, they extended this benefit in
raw
material content, which has the main to all
members of the
more

come

trialized.

Generally speaking, demand

ress.

has

postwar years; the cyclical reces¬
long. The recovery has now more sions in this period have been mild
than made up for the decline in compared to those of earlier
pe¬
the period of adjustment, and in riods, even before 1914.
In none

sort

resources have also
in the form of so-

rities fall due, however,

acute

steps
have
to put
the
program into effect.
These, and
the steps still to come, are likely
to
have
a
considerable
impact;
the
elimination
of
inflationary

can

:•

credits" from
within three,
years. As the matu¬

seven

taken

up,,

"suppliers'
abroad. * maturing

have

commercial

progress

called

spurces (including about $70 mil¬
S.

is;

game

ready flow of sav¬

Temporary
been

other

and

the

.economic

be sustained.

about $200
obtained
from
various
U.

"forced

to specula¬

estate

Then

ventures.

the

from

the

disappear, but the nor¬
flow
of
voluntary savings
also be diminished, and be

savings"

will

only

not

pens,

period of economic stagnation.

index-tied wages),

will also hasten to buy
they can to avoid loss

they

which

monetary

tion, they will deqnand increased
wages
sooner
than before (and

However, once
wake Up to the hurt in¬
upon them
by the infla¬

by the European Fund.
more,

cited

investment.

whatever

drawing made in March.
-In

other

(1607)

investments

the receipt of for¬

eign resources is then of particu¬

larly great importance. If, for in¬
stance, large investments, which
are not matched by sufficient do¬
mestic savings, are undertaken at

internal

concerned

with

the

continued

creditworthiness of the

developing

countries.

Decries "Tied"
Official

sources

Loans

cannot

ex¬

pected to furnish all the capital
needed, and substantial amounts
of private capital must also be at¬
tracted to the underdeveloped
countries; creditworthiness is im¬
portant for both types of capital
but is, of course, a matter of prime
importance where private capital
is concerned; and in judging cred¬
itworthiness, monetary stability is
a most important criterion.
Both

the

countries

supplying and the
receiving capital have
everything to gain if they can
avoid
narrow
nationalism,
for

countries

these

not

are

purely financial

problems—it is in the interest of
both parties to see that the tech¬
nical methods employed are likely
to

produce the best results from

the investments which
As attention to

must

the^

are

made.

monetary stability
of

concern

the

re¬

ceiving countries, so the resources
provided by the supplying coun¬
tries, which have now increased
in numbers, will be more effec¬
tively employed to the extent that
the receiving countries
are
al¬
lowed
to
buy in the
cheapest
markets.

Since the monetary situation is
influenced

by the methods em¬
ployed to finance development ex¬

penditures, the Fund has an inter¬
matters, even though

est in these
its

own

stricted

financial assistance is
to

short-term

re¬

balance

payments purposes; drawings on
the
Fund
being repayable not
later than three to five years after
the drawing. I may recall in this
connection

that

resources

made

available

by other institutions to
support stabilization programs ar¬
ranged with the Fund have some¬
times been of

I must also

long-term charac¬
point out that one

of the purposes

of such stabiliza¬

ter.

tion

programs is to improve the
creditworthiness of the countries

concerned in order to give them a
surer
basis for their
long-term

development.
Commodity Agreements
I cannot leave this
out also

ity

subject with¬
referring to the commod¬
which

agreements

have

at¬

tempted to regulate the supply
and prices of particular commodi¬
ties.

Even

the

most

effective

these agreements can only be said
to have been
moderately success¬

ful, indeed, those commodities
regard
to
which market

with

forces have been allowed to have
their

influence

most

often to have fared

period of years.
able

stocks

freely seem

better

over

When consider¬

have

been

accumu¬

lated, nationally or internation¬
ally, difficulties are bound to arise,
however much those in charge
seek to avoid disturbing the mar¬
kets or impairing the interests of
other countries' producers.
We have

seen

that

there is

single cause for the problems of
Continued

page

Chronicle

The Commercial and Financial
32-

yet been

not

which have

policy

Thursday, October 15, 1959

Public Utility

fully grasped. The time has now
come i for
member countries to

opportunities

make full use of the

opened

primary producing countries,
that there

the

who

countries

and neither can we say

single remedy. Progress
must
be sought along • different
lines: In some fields action is re¬
one

quired by the primary producers
themselves; in others, the active

deliver

are

to
greater

able

now

promptly a

competitive
prices. It has also been connected
goods

range

developments

internal

with

1958-59, when there was a sharp
in the U. S. budget def¬

*An

address

Jacobsson before'
International

Mr.

Governors,

Fund, Washington, D. C., Sept.

1959.

•

lArticIe
of

Board

Monetary
28,

(v)

Fund's

the

Articles

and

substantial

credit

expansion.

Service

Philadelphia Electric

Bonds

Being Offered

New

of New Hampshire

Hampshire

19 and pays $1 to

over-counter around

has been selling recently
yield 5.3%. Even in these

days of high interest rates, this seems a reasonable return con¬

the fact that the dividend is partially free of Federal]
While only 35% of 1958 dividends were tax-free,

tax.

50-55% - this year■"
1960-63, it is esti-'
mated.
The company has been using both accelerated amortiza¬
tion and accelerated depreciation, which are contributing factors.'
the

These develop¬
ments helped to overcome the re¬
cession, but the consequent in¬
is followed, there is every pros¬
crease
in liquidity has, even in
pect of an improvement in the
such a large country as the United
Morgan Stanley & Co. and Drexel
general situation. In these efforts,
States, affected the
balance of & Co. are joint managers of a
international institutions have a
payments position. The measures
role to play. Among the primary
group
offering
publicly
today
adopted to remedy the situation
producing countries affected by have been On the same lines -as (Oct, 15) an issue of, $50,000,000
Philadelphia Electric Co. first and
temporary difficulties, some have
those that woqld have been taken
mortgage' bonds, 5%
turned, and will in the future in a similar situation in other refunding
series
due
1989, at
101.09% to
turn, to the Fund with requests
countries
balancing the budget
yield
4.93%
to
maturity. The
for assistance, sometimes of a sea¬
and restricting credit, while at the
group was awarded the issue at
sonal character, sometimes for the
same
time paying greater atten¬
competitive
sale
on
a
bid of
elaboration
and
implementation
support of the industrial countries
is needed. If this varied approach

Public

income

degree

Public Service Company

sidering

Agreement.

increase
icit

financial structure

tional

the

in¬

and the gen¬
strengthening of the interna¬

eral

Continued from page

renewed

the

Securities
ELY

BY OWEN

in production

crease

<1608)

amount seems

likely to increase to around

might approximate 60% during the years

and

With annual electric revenues of nearly $33

million, the com-1
It and its two sub¬

is the largest utility in New Hampshire.

pany

sidiaries; New Hampshire Electric and Kittery Electric Light,,
operate (with a minor exception) an integrated system furnishing '
electricity to Manchester, Nashua, Portsmouth, Berlin, Dover,
Keene, and 176 other New Hampshire municipalities. The popula-•
tion served is about 458,000 Or some 30% of the total population in
the state. Electricity is also sold at wholesale to nine other util¬

—

stabilization

programs.

The

tion

to costs.

These actions serve

for the 5%

100.3423%

coupon.

that in¬
The
bonds are not refundable
tendencies are being
at a
lower interest cost to the
withstood, and their effects should
difficulties appreciated. Much re¬
company
prior to Oct. 1, 1964.
naturally extend to the balance of
mains to be done, but with good¬
Otherwise, they are redeemable
payments. It is perhaps pertinent
at the option of the company at
will and appropriate policies on
to recall that increases in interest
#11 sides, these problems can, I am
redemption prices ranging from
rates,
made
in response to a
106.10 % for bonds redeemed prior
■sure, be solved
strong demand for funds actively
to Oct. 1, 1960 to 100% for those
employed in business, do not ar¬
Cautions Countries on
redeemed after Sept. 30, 1988.
rest economic progres, but rather
Investment Boom
A portion of the net proceeds
have the merit of ensuring a more
the problem are
clearly known, and the
of

dimensions
more

now

clear demonstration

flationary

stability has indeed balanced
growth. They have, fur¬
become a guiding principle for
ther, the advantage that a subse¬
the vast majority of countries. In
quent downward
adjustment of
all likelihood, world inflation is
the rates can be made effective
over.
Now
that
the
excessive
fairly rapidly to provide an active
liquidity inherited from the war stimulus to recovery if a change
has been worked off, credit pol¬
in the business trend requires it.
icies have become more effective.
Stiffer monetary policies are, of
Output has risen, competition is
course, not intended to initiate a
fiercer, and the resistance to cost
period of deflation, but represent
and price increases lias grown in
simply an adjustment to a par¬
strength. If we look back at past
ticular phase of the business cycle.
periods of economic history we
By avoiding the twin dangers of
find that a persistent decline in
inflation and deflation, the basis
raw material prices has more than
Monetary

been-an

once

^cessation

general

Since

creases.

become

have

currencies

the
price, in¬
and more

indication

laid for

should be

vigorous ex¬

pansion in production and traderNew

Situations

conver¬

Confront

the

from
will

interim
and

sale

used

bank
the

new

bonds

$15,000,000
for the

repay

obtained

financing of construction,
balance will be applied

the

toward

the

loans

construction

program.

expects that in¬
creasing demands for its services
will require expenditures for the
expansion of plants and facilities
of
approximately $52,000,000 in
the last five months of 1959, $88,The

company

000,000 in 1960, $71,000,000 in 1961,
$70,000,000 in 1962 and $90,000,000
in 196:5, or a total of $371,000,000
through 1963. About 40% of these
funds is expected to be obtainedfrom the sale of new securities,

including
the
present
sale
of
bonds, with the remaining 60%,
being
provided
from
internal

Fund

tible, and since supplies of goods

have
in th? sources.
between
the
United
dividual country can — without relations
The company
is an operating
States
and
other countries,
the utility
grave risks — afford to deviate
providing electricity and
from
the
international
price move to external convertibility at gas service in southeastern Penn.
trends. Naturally, countries must the end of last year and other Three subsidiaries own and op¬
aeek to
avoid these risks; and steps toward greater freedom in erate
the
Conowingo Hydrowhen they make more and more trade and payments, a generally Electric
Project, and one distri¬
lower level of prices for primary bution
efforts to balance their budgets
subsidiary serves electri¬
products, and a widespread slack¬ city in two counties in Northeas¬
or, at least, to reduce their fiscal
deficits, many of them do so not ening of inflationary pressures. tern Maryland, adjacent to the
only as part of ai\ anticyelical All these developments have cre¬ Project. Electricity is supplied "to
policy, but also for balance of ated a new situation which has a population of 3,810.000 in Phila¬
payments reasons. The present revealed the need for a fresh ex¬ delphia and surrounding counties,
expansion needs to be carefully amination of many problems, both in a service area of 2,255 square
The miles. The gas service area covers
watched, for we have to remem¬ domestic and international.
ber that a pronounced investment Fund has felt the impact of these 1,144 square miles in five counties
boom, if one develops, would in¬ changes.
As a relatively young adjacent to Philadelphia, with a
volve not only progress but also institution, it has been faced again population
of
1,535,000.
Steam
.strain, and could have dangerous and again with fresh problems; heating service is furnished in the
consequences if it were allowed to and it has had to solverand will central Philadelphia business dis¬
have to solve, such problems as trict
and
in
get out of hand.
portions
of
West
The meeting of the Fund two they come along—soIvitur ambit- Chester.
as
the Latin
tug"
goes.
For the
12 months ended July
years ago here in Washington was tando,
held at a time of acute tension in Gradually, however, general prin¬ 31, 1959, total operating revenues
ciples have emerged: in their An¬ of
the field
of foreign
exchanges,
the
company
amounted
to
characterized
by
rather
strong nual Reports and in specific state¬ $257,276,000 and gross income be¬
the. Executive Directors fore income deductions to $51,movements of funds, flowing espe¬ ments,
readily available in most lines
from a variety of sources, no in¬

Over the last two years we

are

seen

shift

emphasis

countries, Western
and the United States.
Western Germany has continued
to have a fairly substantial sur¬

have from time to time

plus

Giving effect to the sale of the
new
bonds and the repayment of
bank loans, capitalization of the
sources to meet the demands that
may be made upon
it, even in company at July 31, 1.959 was:
$511,337,000
in
long-term
debt;
emergencies; this has given mem¬
bers
confidence
that
they can 874,720 shares of preferred stock;
and 13,677,776 shares of common
move toward
greater freedom cf

cially

two

Germany

the current account of its
balance of payments, but thanks
on

considerable

capital exports
(including debt repayments), the
foreign assets cf the banking sys¬
tem have been rising at a much
.slower pace.
U.

Developments in thi>

balance

also

shown

tinuing at

payments

capital

exports

have
con¬

high level; however,

the current account surplus began
to decline at the end of 1957, and
a

deficit emerged in the first half
1959.

these

The

over-all

developments has

outflow

States,

effect

been

gold from the United

and

accumulation

dollar assets in the hands of other

countries.

some

extent,

this

change has reflected the increased

strength

producers

other

explained

666,000

compared

principles and policies which
govern their decisioiis.

erating

revenues

the

Looking at the future, it is an
important fact that the Fund now
has at its disposal sufficient re¬

trade and payments

without hav¬
ing to pay undue regard to tem¬
porary balance of payments dif¬
ficulties.
Indeed, the proposal to
increase

the

self cast

was

European
move

resources

it¬

shadow before it, since

certainly

erations

the

Fund's

which

one

of the consid¬

prompted

governments
to

some

make

external convertibil¬

and

for

gross

with

op¬

Events have been

men's

minds.

moving faster
Recent

im¬

provements have implications for

of the company's reve¬
1,600 concerns. In the post¬
war period manufacture of durable goods has increased sufficiently
to more than offset curtailments in textile operations; thus the
number of persons employed in the manufacture of electrical prod¬
ucts is over six times as large as a decade ago.
General Electric,
employing 1,500 people at Somersworth, is currently making all
of its magnetic suspension meters, about 40% of the national do¬
mestic market, at its Somersworth plant and is one of the many
firms which has located in the state since World War II.
Plastics,
electronics and metal working are also coming into the state.
and is well

diversified, with

over

state's

The

economy has also been well maintained in other
unlike other New England states, farm income, has not
any deterioration since
1950.
Over 98% of New Hamp¬
shire's farms are electrified.
Tourists income, important in many
areas of the state, has more than doubled in the postwar period.
Despite the geneial let-down in business in early 1958, the com¬
pany's annikl peak load was 11% larger than in 1957. The per¬
centage of unemployment in New Hampshire was smaller than
the United States average month by month during 1958.
Like other New England
utilities, Public Service of New
Hampshire uses available hydro power, which last year contrib¬

respects;
shown

uted one-quarter of kwh output.
The company operates steam
generating stations with total estimated capability of 296,000 kw,
and 24 hydro electric generating stations with an estimated re¬
liable capability of 38,500 kw (under water conditions prevalent
at times of peak load).
It expects to enter into agreements with
New England Power Company and Central Maine Power Com¬
pany to sell them part of the capacity of the company's new 100,-

000

Fall of

steam

generating unit at Bow,

Construction expenditures for
000

completed

the

1960.

with

compared

1959

estimated at $16,700,-

are

$10,500,000

in 1958.
The company in July,
mortgage 5V8S and 396,000 shares of
common
stock
(net proceeds about $7 million).
Capitalization
on
a
pro forma basis following this financing is approximately
54% long-term debt, 12% preferred stock and 34% common stock
equhv (3,550,000 shares).
1959

sold

The

million

common

first

stock record has been as follows in recent years:
Approx.
Paid

Earned

Range,

1959

.-*$1.25

$1.00

1958

1.26

1.00

19-16

1.32

1.00

18-15

1957

1956

.92%
.90

increased., number of shares.

credit for interest

w—

18-15
18-16

1.26

.90

17-14

.93

.90

15-13

1953____.

The

—

1.28

1954

♦On

1.40

1955

51.39

was

earned

shares.

average

construction last year was $121,000

compared with about double that amount in

the preceding three
years—partially accounting for the moderate decline in share
earnings in 1958. However, with the present construction of the
100,000 kw unit (to be completed about a year from now) the
interest credit has again increased and should remain at a good
the

level until
The

new

unit

installed.

obtained rate

increases of about $1 million in
1954, $165,000 in 1956, and $503,000 late in 1958, the latter amount
company

being equivalent to about 14c
the

offset

dilution

a share—approximately
enough to
equity earnings resulting from the recent

financing.

income

$247,745,000
of $48,177,000

year

Firsl Philadetohia

1958.

stock.

The
New

First

York

less,

common

stock

cents

brokers

share to

per

2,500
per

selling

than

2,500 shares).
a

Oct. 6

publicly offered 100,000 shares of
its class A

selling

and

those

Philadelphia Corp.,
corporation,

(gross 30 cents

brokers

Corp. Stack Offered

(par 10

at $3 per share.

cents)

The

net proceeds will be used
working capital; general cor¬
porate purposes; and to develop

for

broker-dealer relations.

The corporation intends to offer

With Penington,

Coiket

PHILADELPHIA, Pa.—Penington,
Coiket
New

other

that

now

and

exchanges,

an¬

Stock

leading

nounce

members of
Exchange

Co.,

York

Michael

Fairagalli

with

associated

the

their

ity at the end of last year.
than

Industrial business supplies over 21%

nues

calendar

the

total

ities, and is distributed to six towns in Vermont and six in Maine.

Philadelphia

office,

Broad

Street,

resentative.

123

South

registered

rep¬

this stock

for a period of 45 days
directly through its officers and
directors,
and
through
brokerdealers

who

National

are

members

Association

the

additional 45 days.
On sales made directly to the pub¬
lic by officers and directors, no
commissions will be paid.The

To Hold
Association

The

Meeting

Customers

of Securities

Dealers, Inc. The corporation re¬
serves
the right to extend
this

period for

Customer Br^k*rs

price for the issue is $3 per

Brokers of New York will hold an

education meeting on Wednesday,
Oct.

21st,

Hotel.

Ernest

dent of the

the

Sheraton

Henderson,

East

Presi¬

Sheraton Corporation,

will be speaker.

Volume

190

Number

5890

The Commercial and Financial Chronicle
(1609)

Securities Salesman's Corner
BY JOHN

Roto American

Corp.

Co *'

(Oct.

Wrong With Selling Some New
Treasury 5% Notes
There

must

tential

thousands

clients; who

po-

$5,000, $10,000 and up to several
hundred thousand dollars in various

accounts

paying

them

from

to 4%.

Many of these people
absolutely nothing about

know

num

and/

iuui-jcdi. j

ten-month-maturities.

;

The

fulifoith and^creditof the mation
is behind these
obligations. Surely
no
other security or investment
can
be;: safer/' Look what; this
to

means

own

Annual Income

50,006

4 95%

2 475

rate provides an edge of

$975

whu

yitrius

you

more than

than obtain-

4%.-An

stating that your firm would be
pleased to buy these notes in
denominations of from $5,000 upa
nominal brokerage

ward, with
charged for

services, should
be interesting to many people who
never

into

door

your

your salesmen

before.

Acquire New Clients;

The securities business is unique
in that you must locate people
who have substantial funds available for investment.
find

them

The best way
offer
them

something that has ^universal appeal; that is recognized and known
sound

investment, and

securities in

substantial amounts.

better

security

recommend

than

Government

bonds?

The

these

main

and

could

United
-

objective

people

with them.

get

man

i
is

you

States

you

likes

fice, if

salesman,
can
can

Care

■ $

should

writing

comes

in to

you

looks of your ofreceptionist is pleas-

:-s

■

•.•

exercised

savings

rather

4,
at
at

Boa^

wnuui

Packaging Corp.

leasing

and

modern

servicing
line

■

— *

Benjamin S. Katz is conducting

securities business

from offices

Avenue, New York

City.

the

these

Street.

Dav

tax

itself

—

Philip Bradford, President, and A. C. Brown,
Secretary-Treasurer,
are

fL_J.c

<-harles *

•

Allen

^ou,faxepossible
a
isn tit

that you

plans

use

pPocceeds

will

inth'

the

c."

proposed two and one-half
split
The company re-

one

its

high
that

tax-exempts, or
might, buy some of
priced, low yielding

space

Commission

covering
stock,

common

assist

r.
,
Chailes

are

much

evi-

dence today on the Exchanges and

TDrTAmDADAr

Co.,

S.P.A.

typewriters

chines,

will

-n/r.

Italy,

would

wood>s

„

80 South

nSP^tvio

AWib

doing

4356 Via

from

With First Southeastern
(Special to The Financial Chronicle)

offices

Ga. —Frank

Jr.

venson,

and

Floyd

outstanding

used

under

engaging in

business

Street,

the

firm

from

New

offices

York

name

Teas

Oct.

his

se-

City,
David

MILWAUKEE,

Windier

has

Wis.

—

become

Ralph

1941

helicopter

engine.

The

825

turbine

twice the cabin
capacity

The

former

H-43A.

capacity

passenger

lifting

space and

the

H-43B has increased over the "A"
from o (including pilot and coPilot) to 10.

Open Investment Business
(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Bob and

Elsdne Johnson have formed

Partnership with offices at 4700

Rejoins A. C. Allyn

ma-

405,000

holder

the

stock

sale,

UnderPro-

'to

Feb. 29, 1960, would
retire

short-term

have

been

man

elected

;

BOSTON, Mass.—George E. Babb
has rejoined A.. C. Allyn & Cb.^

Inc., 30 Federal Street. He was
recently with Goodbody & Co.
•

Dempsey-Tegeler Branch
^

BISMARCK, N. Dak.—DempseyT^eler & <*> has opene d a branch

np1 ^!f°r

management of Roy S.

TOWng.
Form L. Wolf Assoc.
MT. VERNON, N. Y.—Lewis Woli
JViJ.

Associates has

been

formed

with

offices at 1 Firsher Drive, to engage

securities business. Part¬

board.

new

ing

and

designed

was

officer of E. H. Rollins & Co.

afi

electronic

voice record¬

reproducing
machine
to increase speed and

Lewis

are

Hecht,

Wolf,

Gustave

Donald

and

Bernberg,

Sheldon Posner.

•

Paine, Webber Office
efficiency in the handling of out¬
going teletype messages; has been CLEVELAND, Ohio—Paine, Webannounced by Dictaphone CorpoJackson & Curtis has opened
vohnn
a?
prirlrfondrt
\
ration, of Bridgeport. tcnnum as
Known asa
branch office in the Sheraton
the Dictaphone Telegram RecordUnfol
ing-Reproducing
Machine,
the Cleveland Hotel, under the mandevice
has
been
developed for agement of Richard B. Mapes.

■

Primary Markets in

'CHAS. W. SCRANTON

associated

CO.

CONNECTICUT

Members New York Stock Exchange
1
New Haven

West Wisconsin Avenue.

SECURITIES

is engaging in a se¬
business from offices at

Kureen

curities
26

"U"

with Lee Higginson Corporation^

Ezra

passed away
at the age of 77.
Prior to
in

contract.- The

turbine

(Special to The Financial Chronicle)

Higginson

Ezra Kureen Opens

Walsh

retirement

corporate
purposes.
Underwood
and Olivetti plan to cooperate in
alj
phases of research, product
development and manufacturing
techniques.
Five
executives
of

Company, Trust Co.
Georgia Building.

(Special to The Financial Chronicle)

Thomas Jl Walsh
J.

H-43B

VY,I1„

Lester Co.

Thomas

on,

Southeastern
of

David Lester Opens

Jane

in production onHuskies

an-

Obligations and for other general

already

Ste-

have become connected with First

Joins Lee

curities

o£

helicopters,

transaction

The

Olivetti

from

Glorieta.

David Lester is

powered

ners

is now with DiRoma,
Alexik & Co., 1387 Main Street.

ATLANTA,

Chronicle)

Arneth

business

turbine

the

business

share.

Underwood's

McGuigan

Coast

BARBARA, Calif. —The
and Arneth, for¬
merly of Englewood, N. J., is now
of

company,

development

The

maker

purchase

make

now

&al ^961

Olivetti

more" than"one-third1 oT

Staff

name

SANTA

firm

(Special to the financial chronicle)

Planning Company.-

Arneth

-•

Exchange.

and

$21.50

ceeds

vviin L/Ji\oma, /\iexiK^

Greve Drive under the firm

" (Special to The Financial

rAi-nnrotmn

followon

vaaeiy

shares of Underwood's authorized
but
unissued
common
stock
at

MINNEAPOLIS, connected Percy
Minn.
Wash
with
is

that ING.

nounced

consummated

?• Zimnoch is engaging in a securities business from offices at 253

th*

Crenshaw Boulevard to engage i».
a securities
business.
a

com-

Underwood Corporation has

and

NEW MILFORD, N. J.—Stanley SPRINGFIELD, Mass.—Francis

of Investment

—

Olivetti

■

Aircraff

luiar plastics and other isocyate Tabor & Co., 139 West Main St.,
members of the
by-products.
members of
Midwest Stock

nvnanri

New York.

WhU

for

.message

transmlttal
*

Kaman

desk

eo^n/produces alvarTeety
p^uuees

general corporate purposes.

Kinnard Adds

the

AX1C t:uu|iJaiJl^

its

Thirty-fourth Street, North.

his

Joins Tabor Staff
of sPecialty chemicals, including
benzidines and other dyestuff raw
; (Special to The Financial Chronicle)
Frederick T.
materials> isocyanates and other DECATUR, 111;
or^anic chemicals, urethane eel- Zwetschke is now connected with

Flaggert,
of

fiimncing

™,graThr,"d„lT,™

$25 000

needed,

Eighth Street.

phone

dictate

ma-

"*^1950and lOfiOrnnXiiPtinn

With Brown, Madeira

Johnson Opens

|nv Planning Co

the

quarterly horsepower

$0.60

P^l1?
.i^tlndW w?<T

for the pur-

tnnlinff

npw

T'i'lo^nS<-n !s from offices aatsecu- John G. Kinnard & Co.,
conduchng
11 les busmess
^110

or some

possibly

organi—

executive

The

(Special to The Financial Chronicle)"

ST. PETERSBURG, Fla.

the

pioneer

46,080

WILMINGTON, 111. —James J.
Jr. is now connected
securities with Brown, Madeira & Company

permits

dia

Allen

Exchange

Bag and

through

subsidiaries

America,

Inc. has been formed with offices
at 666 Fifth
Avenue, New York

Aviation In v. Formed

engage

Located

•

ma¬

liabilitv

corooration

additional

$0.70,. engine, produced by Avco Corindicating an annual rate of $2.80. portion's Lycoming Division of
•
*
/
Stratford,: provides more power,.
The
Carwin
Company, North takes less space, and is lighter in
Haven, has filed a registration weight than an equivalent piston
statement with the Securities and engine so that the Huskie has

production of its latest machines
and
equipment, and the balance
DENVER, Colo.—James D. Gore of approximately $113,400 will be
has joined the staff of Columbine added to working capital and used
Securities Corp., 621 Seventeenth to build up inventories to secure

business. Officers

Groton

Ethan

Boat

for

to its working

moneys

Joins Columbine

City,

Dv-

(Special to The Financial Chronicle)

government

teletype center, the

Electric

Stockholders of Stanley Works,
:^ew Britain will . vote Nov 5

Roto Bag will

^PjtaL_ Ap^oximately
will be advanced to Roto

nj-

Investors

the

h#1

Ethan

Q+

of $20 500)

Pof

held by Roto Bag.

Aviation

General

(after dedurt-

expenses

sale

of sucj1 net
.

opened

Fifth

chine
and

Also registered were 2,000 shares
a selling stockholder. The new
the
common
stock wiJl be offered to stockstock will aggregate approximateholders on a one-for-four basis.
$242,000. The corporation will Tbe c®mPany will use the net
use • $22 500
to
redeem
its pre- Proceeds>
together with general
ThA nGt m-oceeds

add

503

win

Tho

inc estimated

Benjamin KatZ Opens
at

from

Orrin F. Webb.

zation's

naclear Submarinh built at Elec-

67%

tared stock outstanding held by
Roto Bag', a wholly-owned suba branch office at
126 East Main sidiary, and $31,100 to redeem the
Street under the management of 58,100 shares of its common stock

Idaho-

has

circuits.

J^^

plasa

aging of products.

Murphey-Favre Branch
Inc.

and

•

pick

geptember

Submarines

chines and equipment for the pro¬
duction of bags and for the pack¬

Murphey-Favre

A.*

Division

rts

GRANGEVILLE,

was

The corporation's subsidiaries are
in the business of manufacturing,

any

(Special to The Financial Chronicle)
LOS ANGELES, Calif.—Justin A.
Davis is engaging in a securities
business from offices at 269 South
•

business

^^a1 new^lafs^o" Polaris^
firing atomic Submarines'—
teletvoiS
laid

Walgan Machine Corp.,. approximately 79% control of Conapac
Corp.j
and
approximately 60%

selling,

x
.
4""*

diversified

quarter

first

from

Justin Davis Opens

AVI

the

through its not own and opeiate ceni]y; increaSed
foic, does subsi^ie^t^e- dividend

type of investment,

Western Avenue.

use

will

probably

;

„

Since the corporation operates

such

are

than

rtlr-

rt*Tr

%-s

scheduled

27,

«x

any

essential

11-*

u,uusuiwi*

control of Lawson

advertising that might
unfavorably
^toward savinstitutions.
Actually,
for

their

business,

stocks

approximately

make

you

UJ-

^ Roto

^ Peotfe .the test place_ for

meet

acquainted

strike up an acquaintance that
lead to
some
mutual fund

those

'based

are

Oct.

I960.

organized

was

decided

anu

for

the

your

and

'i.onyo

Commissions 88%

June

offices
offices

its
its

AAA

originally

voted

trolled, directly or through a subsidiary corporation, five subsidi-

buy him $10,000
worth of governments and charge
wi
1„
him only a small service fee, true
enough, you haven't made any
immediate profit on the deal. But
how about future possibilities? If
he is pleased with your service,
see

to<■

pro-

vides
a
more
generous
income
than they are now receiving. One
of the problems of this business
is to locate people who can buy
What

The corporation

Need any more be said?

your

walked

telephoned

starting

today.

York

n Art

sought

to acquire control of Roto Bag
Machine Corp. which in turn con-

Here then is the

the contacts that

upon

rate,
provided by 3^2%

rate,, and $500
at

where

tomorrow

earn

per annum over the 3%

$725
able

know

rising to almost 5%.

1institutions

4.95%

didn't

put the money.

mgs

invested at
a

New

It maintains
It maintains

G* 1

sue,

the

laws, of

93 Worth Stf., New York, N. Y.

also

may

reflect

$1,500
.1,750
2,000

•'

thinking of selling and has been
hesitant to take his profits because

the

1958.
1958.

Market.

stocks that he has been

some

under

has

Roto

vInt.-Rate

-<f

$50,000
3
%
50,000
31/2 %
I 50,000 "t4:. ; %

Over-the-Counter

/ '.'Amount
J

porated
State

Gas

pos^P°ne temporarily its plan to organizations whose day-to-day
ofu€; $1,000,000 in new stock, operations require volume transstockhqlder approval for the is- mittal of messages over teletype
IPPllO

today

Roto American Corp. was incor¬

In this connection

retired person, or any¬
one else for that matter: /*•"<;
/
...

the

nursing

are

80 ' 000

American Corporation common
stock (par $1) at $3.75 per share.

What's

—

15)

Bridgeport

New

York*S aw°nis^offering
Want Some New Accounts

Connecticut Brevities

DUTTON

Broadway,

under

the

Kureen Co.

New

firm

York

City,

Ezra

name

New York—REctor 2-9377

Hartford-^-JAckson

7-2669

Teletype NH 194

(1610)

The

MCA Inc. Offering
Has Been Completed
Public
of

offering of 400,000
stock

common

Oct.

$17.50

underwriting
Lehman

This

offering

oversubscribed and the books

was

closed.
the

net

proceeds from the
offering, $6,250,000 will be applied
by the company to the reduction
v

short

term

bank

indebtedness

the balance will be added

and

working

capital.

debtedness
nance

The

in¬

bank

incurred

was

the

Universal^nternational

Studios

Universal

City,

Cal.,

acquired by MCA Inc. in Feb. 1959,
and

now

operated by the company

Revue Studios.

MCA

.■

Inc.

and

subsidiaries

the

production

engaged

distribution

are

and

television

Week

film

1924

the

gross

during
1958
$48,429,749 and net
income to $4,328,442. For the six
company

amounted

months ended June 30,
revenues

1959 gross

Net income in the respective half

periods

year

$2,457,308

was

and

$2,381,154.

BOSTON,

Mass.

David

—

Freedman has joined

the

staff

work force

Injunction

settlement.

If the

steel
too

T-H. actually
and

addition,

The

Keller

with

now

Merrill

PAUL, Minn.

Tischer

has

—

been

half

tons.

production.

steel

Polzak

Williams

is
&

now

with

Associates,

Some

crisis
fail

Robert

EcllingInc., 614

119 Monona Avenue.

S. Travis

Farrell, Inc.,

Two With Scott, Bancroft
(Special to The Financial Chronicle)

FRANCISCO,

Schoenfeld

ciated with
235

have

become

Scott, Bancroft

asso¬

Co.,

Montgomery Street.

outwardly

when
and

severe

cutbacks

observations

the

top volume

until

from

the

hit

mills

full

The auto

supplies

critical

through

products will

January and February.
because of the

output

few

months.

of steel available

Taft-Hartley Slowdowns After

are

close to exhaustion

the situation from

deteriorating

Within two weeks, even the
largest and best
the strike's impact.

that most consumers

before it improves.
protected

users

will

tween 24.5 million and 27 million

Doyle

has become connected with
Brown
Brothers Harriman &
Co., 10 Post
Office Square.
He was
formerly
with Goodbody & Co.

With La Hue Inv. Co.
(Special to The Financial
Chronicle)

ST. PAUL, Minn.—John W.
Ivance
now
affiliated with La Hue

Company,

Arcade.

Steel

11.5

the job if a

Pioneer-

tons—probably

all-time high.

million tons.

industry officials fear

get back

poor

productivity when the work¬

Taft-Hartley injunction

hope

our

reopens

remember what

but

Besides

They

morale.

-——Steel

one President told "Steel,"
happened when President Truman seized

weekly production

publication

labor

steel

said

trouble

output

shortages

the.

and

after¬

held

compared

the figure

week

ending

"Ward's" said Ford Motor Co. was expected to carry out six-

day

programming
work

plants and that American Motors was
Saturday (Oct. 10) at Kenosha, Wis.
operating on a five-day basis this
Corvair facility at Willow Run, Mich., which
10

through

All General Motors plants were
week

the

except

closed Monday to adjust inventories to the steel situation.
"Ward's" said that parts shortages due to the strike at Chrys¬
ler Corporation's Twinsburg, Ohio, stamping plant (settled Oct. 4)

kept most

company

week

that

added

resumed

plants

car

but

The

week.

normal

Chrysler's

unaffected by the Twinsburg strike.
of '60 model cars by

was

reporting service

two or three-day scheduling
production activity would be
"Valiant" production at the

said production

estimated 430,602 units, including
Big Three small cars, Ford's Falcon, Chevrolet's
Corvair and Chrysler Corporation's Valiant.
Output of the '60
model Larks and Ramblers numbers 51,891.
Automobile production to date (4,488,835 units)
is running

52,001

53%

the

ahead of

1958

New

(2,929,088 units).

they appeared

was

new

car

marked

centers have about 2 million tons of steeT in
of normal), "Steel" reported.
Since the start of the
strike, stocks have been drained at an average
weekly rate of
more than 130,000
tons,

surprisingly slower than was anticipated.
Except for the imbalances in the product mix and in
geo¬
graphical distribution of reserves, stocks could be
adequate for
more.

But flat rolled products are
particularly

major products

fared much better.
acutely than

most

(bars, plates, shapes) have not
The Midwest is feeling the
supply pinch more

other

Total
year

War II, "Ward's Automotive Reports" said on Oct. 6.
said
September retailing of domestic-built cars

"Ward's"
totaled

349,629 units

13,985-unit daily

—

industry's worst September since

that marked

average

before

1951, excluding the
10,240-unit daily rate for September of depression year 1958.
Sales were 25.3% under August, a more-than-seasonal decline.
The sales softening was attributed to effects of the steel strike
as
it pertains both to purchasing power and withholding of car
sales

overly

cautious

tory announcement of '60
The

nine-month

dealers, plus widespread
car styling features.

count

was

divided

48.3%

pre-introduc-

Corporation,
Chrysler Corporation, 6.5%
Corporation.
The statistical? service reported third-quarter new car buying
at 1,288,000 cars, 20.1% under the 1,613,000 for April-June, but
38% above a yeariago. It said that 401,500 July-September sales
by Ford Motor Cbimpany gave it the smallest second to third
Ford

30.4%

Motor

Company,

Motors and

2.4%

12.4%

Studebaker-Packard

decline (15.4%) of any auto company.
GM Corporation third quarter sales were estimated at 605,000

quarter

in April-June, and Chrysler Corporation 167,400 vs.
plus American Motors at 85,500 vs. 117,000.
For Stude¬
baker-Packard C&rporation it was 28,500 vs. 37,400.

772,000

vs.

"Ward's"

Ford

said

dealers

Chevrolet

that

honors

sales

estimated

added

but

42,000 units

sold+at 100%

quarter following 493%

remains

that

Ford

surge

ahead

the

strength in

of the Chevrolet level

race

the

narrowed

for

lead

September.

the

third

in April-June.

Business Failures Up
Commercial. aifd
week ended
&

districts.

industry has lost $2,688,000,000 in sales in the strike
through Oct. 12. The steelworkers have lost
$926,000,000 in wages.

Moderately in Latest Week

industrial

failures

rebounded

274

the

Oct.riTfrom 224 in the preceding week reported Dun
This increase lifted casualties slightly above

Bradstreet,- Inc.

the

service

another 13 weeks or
hard hit and other

1958

Oct. 6, pushed its 1959 calendar

sales past the 4,287,000 units retailed in entire 1958 but
the milestone with one of its worst September volumes

since World

about

concern

Exceed Full

The auto industry, as of

when

we
got the figures."
slowdowns, the companies dread
possibility of having to shut down again after 80
also worry about long term effects on
employee

the

Car Sales

men

(60%

The

trade

scheduled

the

alarm is unfounded,"

expensive

stock

average

212,000

the mills back in 1952. Production in
some of our departments
off as much as 65%. You couldn't see
the slowdowns as the

days.

tons,

Industry Adopts Steel. Stretch-Out Policy

to 113,976 units
(105,720).

run

No.

"We
we

production is based

2,003,000

! 'V

industry, building at a behind-schedule rate of only
weekly and facing serious curtailment after next
expects to operate at only 50% to 60% of its scheduled

American

inventories will
drop as shipments fall short of consumption. By the
week, mills may start shipping as much steel as customers
are
using, but hardships will continue. It will be the fourth
week,
at best, before an
inventory buildup begins.
When the strike
started, finished steel inventories were be¬

the

Fear

cutbacks, layoffs, or shutdowns in a matter
materalworking weekly, said Oct. 12.
nothing—not even an immediate settlement—that

prevent

"but

: +<

the end of this week totaled

industry normally takes from 15 to

feel

ers

placed

was

this week's (period ended Oct. 10)
estimated 8% gain over last week's
Combined production of U. S. manufacturers was expected

total.

four

Mills Reopen

worked,

(Special to The Financial
Chronicle)

BOSTON, Mass.—Gerald

Endicott

layoffs

high

But in the late fall and winter production
automakers will try to grab off 25 to 30% of available steel.

Steelmakers

Calif.—

Brown Bros. Harriman Add

Investment

maintain

mills.

Creighton C. Armstrong and John

will
to

Today, they're close to

SAN

ago

third

(Special to The Financial Chronicle)

Bell

the

In the first two weeks after
the mills reopen,

MADISON, Wis.—Robert
with

which

weeks

spread

to sustain

continue to

With Bell & Farrell

now

crisis,

four

reaching its ambitious production goals in the
As a secondary
effect, this will take its toll

can

production
.

cars

side, automakers are hardest hit of the big*
Shortages will prevent the auto industry from

user

consumers.

There

Grant Street, East.

stocks

enough

face drastic production
of days, "Steel," the

(Special to The Financial Chronicle)

271.

last year, and considerably above the 244 in the comweek, ol ,1957.
Sixteen per cent more businesses suc¬
than in the similar prewar week of 1939 when the toll

parable
cumbed
was

237.
The

bilities

week's-upturn

concentrated in failures involving lia¬
which rose to 240 from 182 in the pre¬

was

of $5,000 or more,

vious week and 230

a year ago.
In contrast, small casualties, those
with liabilities under $5,000, dipped to 34 from 42 a week earlier

41 last year. Liabilities in excess of $100,000 were incurred
by 19 of the failing concerns, as against 18 in the preceding week.
All industry and trade groups except construction and com¬
and

mercial
climbed

service
to

-toad

higher

138 from 100,

tolls.
Casualties among retailers
wholesalers to 35 from 18, while

among

forecast '

-:.-v"

the

Steel

With Edling-Williams

the

operating rate (based on 1947-49 weekly
and production 356,000 tons. A year ago

Dodge Hamtramck plant

1960.

ore

that

this week's

for

percentage

•

automobile

this

Co.,

steel

not

The

reached

resulting

total

staff of La Hue Investment
Pioneer-Endicott Arcade.

—

that

This

longer.

will

announced

Oct.

;

Age" makes these additional

even

iron

mills

the

^MINNEAPOLIS, Minn.

pipelines.

shortage.

surge,

own

shipments will not reach

first

Institute

*22.2%

•

The

back-to-work provision of
about 50 days of full steel

20% of all steel output.

Herbert

added

in the industry or the Steelworkers union

and

for other industries.

La Hue Inv. Adds

(Special to The Financial Chronicle)

week,

80-day

to six weeks after the workers
go back to the mills.
Some items will be in short
supply and on allocation

the

640,000-unit level for the. month of October, "Ward's Automotive
said Oct. 9.
Some companies which under-built Sep¬
tember production already have adopted a steel stretch-out policy
in production for this month.

magazine

mills'

really

was

Iron

Steel

Some

ST.

the

strike and its effects:

The

Lynch, Pierce, Fenner & Smith
Incorporated, 18 Milk Street.
*

the

estimates

industrial
now,

stay tight

Edward

—

says

million

shortages

"The

(Special to The Financial Chronicle)

Mass.

But it will

layoffs,

became inevitable.

Joins Merrill Lynch

widespread

one

pickup

12.9% of Capacity

Steel

1947-49.

113,000

at best prevent the nation's

can

the

magazine

about

steel

Brothers Securities Co.,
Inc., Zero
Court Street.

BOSTON,

additional

fill

1 heavy melting

sharp

Reports"

running completely out of steel.

A&e"
would

the

ago

was

weekly

Auto

closer to

country

quick settlement.

(Special to The Financial Chronicle)

with

the

is under any illusion that the workers will
put out full effort.
The union opposes the injunction, believes it will
only ease pres¬
sure from steel users for a

evident

associated

takes

result in only
This is because of time needed to start up ingot pro¬

production.

month

effects of
Iron

week.

The auto

reports.
"The

and

Estimated

tons.

actual

weekly states that
President
provides time for another try at

avoid

capacity.

resumes.

124.7%.,

metalworking

injunction is ordered, it
from

Iron

last

ton

gross

Output Based

*Index of

invoking the act
the delaying action

jCannot Prevent Steel Market Chaos

But

users

late

net

the worst steel shortgage crisis in its history.

are

Michon

national

Eisenhower's

$43

American

production)
the

Invoking the Taft-Hartley Act cannot prevent complete chaos
"The Iron Age" predicts.

BOSTON, Mass.;—Philip I. Hershberg and Ronald C. Knox have

633,670

the steel market,

level

become

66,847,000.

was

is 12.9%.

continued

for

T-H

ton

Two With Keller Bros.

strike

13%

Actual output for the week beginning Oct. 15 was equal to
12.8% of the utilization of the Jan. 1, 1959 annual capacity of 147,-

Mitchell will haye to make good his prediction that
unemploy¬
ment, will not go below 3,000,000 in October. The nation's total

Hill, Darlington & Co., 80 BoylsStreet.

steel

held

week

last

rate

capacity for the week beginning Oct. 12, equivalent to 365,000
ingot and steel castings (based on average weekly produc¬
tion of 1947-49)
as compared with an
actual rate of 22.5% of
capacity and 362,000 tons a week ago. [ED. NOTE: A strike in the
steel industry began Wednesday, July 15.]

throughout October,
the jobless total will be increased especially in the affiliated steel
using industries.- So it remains to be seen whether Secretary

CSpecial to The Financial Chronicle)

the

nonpro-

tons of

the

Labor

tember.

company

operating rate of the steel companies will average *22.7 % of steel

Department announced that unemployment had
dropped 196,000 in September to 3,230,000.
More than a million
young Americans went back to school at the September class
openings. The total number of workers dropped 894,000 in Sep¬

duction

Hill, Darlington Adds

+17.1

The

clearings in U. S., refer to
"Chronicle," issued Mondays. For
refer to page 47 of the Oct. 12 issue.
of

held

Steel

6.9

Unemployment Total Drops 196,000 in September

The

were

$30,141,936 com¬
pared with $25,987,472 in the cor¬
responding six months of 1958.

grade,

+24.6
+ 8.5

■.

ingot

anticipated when steelmaking

633,984,376

national

"Steel's" scrap price composite, based on No.

of bank

summary

Edition

this week's summary,

U. S. A.

The

revenues

detailed

Statistical

•/

$10,028,160,840
1,083,998,070
.995,000,000

742,158,685

For

the

by Jules C. Stein.

Consolidated

____________

Boston

series and in the representation of
artists in various branches of the

entertainment business. The orig¬
inal MCA company was founded

$12,491,889,541
1,175,794,402
1,064,000,000

$585,000,000 in taxes.
And, other
overhead, depreciation, and salaries of
are estimated at $512,000,000.

Mills in operation produced about 368,000 ingot tons.

Our compara¬
1958

1959

New York

Chicago
Philadelphia

The

leading banking centers this week follows:

Ending Oct. 10—

fi¬

the

acquisition of and ad¬
ditions to production facilities of
°

tive summary for the

1958.

week in

same

lost

including

duction workers in steel

page

$26,758,457,292 for the

against

share by an
headed
by

per

group

Brothers.

Continued from

made

was

State of Trade and Industry

has

U.'S.

losses

-Volume 490

Number 5890

manufacturing edged to
the service total

38.

The Commercial and, Financial Chronicle

50 from 46.

down to

Neither retail trade

ures as

from

and

cbinmercial

nor

construction to 37

servicg^hqd

from

as many

hand,

reported

had the

•one

casualties

than

number

same

year ago.

^22 in the

compared with

preceding week and 24 in the similar week of 1958.

The

Electric

Output 8.4% Above 1958 Week

The amount of electric
energy distributed by the electric light
and

power industry for the week ended Saturday, Oct.
estimated at 13,086,000,000
k^h., according to the Edison
Institute.
Output decreased

10,

Car

This

freight for the week, ended Oct. 3, 1959,
Association of American Railroads an-

revenue

572,502

nounced.

the

cars,
was

decrease of 105,123

cars

15.5%

corresponding week in 1958, and a decrease of
23.4% below the corresponding week in 1957. ' '

175,145

cars

lative loss is

;

now

These findings

politan

Lumber
Lumber

mills

468

1959.

below

sories,
clines.

was

over

400

terminals

truck

;

•

For

were

•

appreciably

Jry

mills

reporting

3.3%

were

In the

below

same

week

Unfilled

National

the

production
new

for

the

orders of these

■.

■

.V' """

■

:■'
"

•

a".\

: \

;

•

'•

■

•

■

Despite

and appreciable year-to-year gains were main¬
slight rise in transactions in print cloths, over¬

remained close to the preceding
worsteds remained sluggish,

woolens" and

somewhat. Fears of an ex¬
finishers discouraged incoming
orders in that industry in New England during the week-;—
but

sales

pended
:

carpet wool picked

strike

There

dyers

among

was

and

marked rise in orders for linens this week,

call for draperies and floor

the

substantial rise in sales of refrigerators, laundry
television sets, and radios this week; some retailers
attributed this to sales promotions and to fears on the part of
consumers that supplies will be
limited due to the steel strike.
Best-sellers in furniture were dinette sets, bedroom sets, and
There

was a

upholstered chairs. A moderate rise over the prior week occurred
in the buying of floor coverings, and volume remained well over

best-sellers

the

volume at wholesale matched that of

last

corresponding date
Despite

vesting
range

year

ago.

•

and finished fractionally below the prior week; corn trading
Bad harvesting conditions helped prices on soy¬
move up appreciably and transactions were
slightly higher.

Wheat prices edged

fractionally higher as both domestic and
export buying picked up. During the week Brazil bought 5,600,bushels of wheat.
There was a moderate rise in rye prices
trading matched that of a week earlier. A slight rise in trans¬
actions helped oats prices rise somewhat from the prior week.
The United States Department of Agriculture estimated that
the corn crop would come to a record 4,429,154,000 bushels this
"

significantly from the prior week, and Was well over a year ago.
Food
in the

compared with the 1958 record of 1,462,218,000 bushels.
Although domestic buying of flour lagged this week, export
buying moved up substantially holding prices close to the prior
week.
Sizable quantities were sold to Holland, and negotiations
were pending for shipments to Norway and Indonesia.
Unfavorable late

season

appreciably during the week, but
prices finished unchanged from the prior week.
Following a
slight rise at the beginning of the week, cocoa prices slipped $t
the end of the period, as buying slackened.
—-■
Hog receipts in Chicago remained close to the prior week,
but trading was sluggish and prices were somewhat lowe;.
Although the salable supply of steers was substantially higher, buying lagged and prices were down from the prior week.
Lamb
prices finished the week close to the prior period and trading
showed little change.
There

growing areas somewhat
limited rice supplies helping prices move up slightly; rice trading
slipped somewhat from the prior week. A moderate increase in
sugar buying occurred and prices were fractionally higher.
Volume in coffee moved

weather

was

fractional

decline

cotton

prices during the
exports came to about
bales, compared with 53,000 in the prior week and 59,000
in the comparable week a year ago,
according to jthe New York

week.

the

week

ended

50,000

last

Tuesday

buying

There

steady this week.

was

were

some

gains

Are you

purchases of ice cream, cold cuts/dairy products, and fresh

in canned goods, fresh meat, and poultry

but interest

produce,
lagged.

Although food buyers stepped

have
a

their purchases of rice, fresh

were

offset by

of eggs,

really too busy to

health checkup once

year? Or do you put it off,

because you're

meat, frozen foods, and baked goods during the week, gains here

declines in canned goods, flour, and poultry. Sales
butter, and cheese were unchanged from a week earlier.

doctor might

afraid your
find some¬

thing wrong?

Sales Down 2% for

Nationwide Department Store

year, up 47,000,000 bushels from the last estimate made in Sep¬
tember. Wheat production is expected to hit 1,117,430,000 bushels,

in major appliances moved up appreciably;
laundry equipment and refrigerators. Furniture
a week earlier, with interest

centering primarily on upholstered chairs, bedding, and, juvenile
The call for housewares, glassware, and gifts climbed

000

were

furniture.

remained steady.
beans

bookings

buying,

reports of unfavorable weather conditions for hargrowing areas, corn prices moved within a narrow

year.

Although the lengthy steel strike has not prompted any scare

and

coverings was moderately higher.

equipment,

!y- v.-..
:

Purchases of men's apparel edged

in cotton gray goods

Purchases

week.

•'>:

■

this

hogs, steers, and rubber, the gen¬
dipped moderately from a week
earlier.
The Daily Wholesale Commodity Price Index, compiledby Dun & Bradstreet, inc., declined to 276.26 (1930-32 — 100) on
Oct. 9 from the prior week's 277.01.
It compared with 278.00 of

;

coats,

Fall suits.

volume

all

Moderately Below Prior Week
Reflecting price declines
eral commodity
price level

•

from

Trading in industrial fabrics and man-made fibers rose moder-

Wholesale Commodity Price Index

moderately

sales of sports

week,

1958

holiday sales promotions.

tained:

new orders were 3.4% below.
Compared with the corresponding week in 1958 production of reporting mills was 1.4%
above; shipments were 2.6% below; and new orders were 11.1%
above.

East

+2;

wholesalers

ately this week,

above;

fell

suits

and

coats

similar

the

cruisewear

and

coats and

Compared with the previous week ended Sept. 26, 1959, prowas 2.2% below; shipments were 3.2%

ended

accord¬

from the prior week, with buyers primarily interested in top¬

orders of

duetion of reporting mills

;

week

a year ago,

with First California Com¬

Inc.

reported a marked rise in orders for
week, and substantial year-to-year
gains occurred.
Re-orders for women's fur-trimmed cloth coats
and dresses expanded somewhat and the call for suits and acces¬
sories matched that of a week earlier.
There was a marked in¬
crease
in volume in children's and infants' merchandise suitable

throughout the country.

production.

women's

from

Apparel

year-to-date, shipments of reporting identical mills
above production; new orders were 0.4% below pro--

0.4%

in the

155

For many years

steady, with interest centering primarily on skirts, sweaters,

was

the

duetion.

trade

higher than

was

pany,

asso¬

Co., Inc.,

slacks, and sports shirts matched those of a year ago.
The buy¬
ing of boys' apparel was sluggish, but volume in girls' clothing

reporting
mills amounted to 36% of gross stocks.
For reporting softwood
mills, unfilled orders were equivalent to 17 days' production at
the current rate, and gross stocks were
equivalent to 43 days'
production.
'v
7' ■' ' ■<*

retail

Birr &

Street.

Sansome

become

and interest in fashion acces¬
sportswear, and dresses showed slight year-to-year de¬
While the call for men's topcoats and suits was down

resort

Barometer

9.0%

were

volume

ciated with

has

both the prior week and a year ago,

handled

shipments
Oct. 3,

Central —4

Purchases

cars.

Shipments Down 3.3% From 1958 Week

Trade

week ended

•

Calif.—Julian

FRANCISCO,

Turrentine

and dresses.

carriers of general freight

Lumber

Central, and South Atlantic —2 to
to 0; Middle Atlantic —10 to —6.

North

East

South

on the weekly survey of 34 metro¬
by the ATA Research Department.
The

tonnage

Buying Slips

warm

below to 1%

from 3%

was

land,

cumu¬

based

are

conducted

areas

reflects

common

approximately 1,830,000

Intercity, truck tonnage in the week ended Oct. 3,

report

these week-to-week estimates the

8%
ahead of the corresponding week of 1958, the American Trucking
Associations, Inc., announced. Truck tonnage was 1.4% ahead of
that of the previous week of this year.
_

Based

Intercity Truck Tonnage 8% Above 1958;Week

would have been loaded in the current week if there had been

steel strike.

Joins Birr & Co.

ing to spot estimates collected by Dun & Bradstreet, Inc. Regional
estimates varied from the comparable 1958 levels by the follow¬
ing percentages: Pacific Coast +4 to +8; Mountain -f-3 to +7;
West North Central and West South Central 0 to +4; New Eng¬

':,
Loadings in the week, of Oct. 3, were 14,577 cars or 2.5% below
the preceding week. It is estimated that about
165,000 additional

dollar

total

The

Oct. 9

below the

unseasonably

Frank Sidoti

(Special to The Financial Chronicle)

weather and the effects of the
steel strike in some cities slowed'consumer buying this week,
and over-all retail trade slipped fractionally below that of a
year ago.
Year-to-year declines in sales of apparel, linens, and
draperies offset gains in major appliances, furniture, and new
passenger cars, where sales promotions met with favorable results.

Loadings Down 15.5% From 1958 Week

Loading of
•totaled

Continued

Wall

principal of the firm.

SAN

Retail Consumer
,

;

use.

was

148,000,000 kwh. below that of
the previous week's total of
13,234,000,000 kwh. but showed a
gain of 1,019,000,000 kwh., or 8.4% above that of the comparable '
1958 week.

foodstuffs and meats in general

Electric

represents the sum total of the price per pound

Index

raw

York

New

Street*

City.

offices

from

£ompany, Inc. is

securities business

engaging in a

It is not a costof-living index.
Its chief function is to show the general trend
of food prices at the wholesale level.
of 31

Cavag-

V. S. Wickett Opens
V. S. Wickett &

and hogs.

cocoa, eggs

Branton

management of John

the

bellies, butter, cottonseed oil,

naro.

Moving higher in wholesale cost this week were wheat, corn,
oats, barley, hams, lard and coffee.
Lower in price were

rye,

recorded

were

office

opened a branch
Place under

Roberts & Co. has

Food Price Index, compiled by Dun & Bradstreet, Inc., dipped again this week to another new low for 1959.
At $5.89 on Oct. 6, the index was 0.3% below the previous 1959
low of $5.91 set a week earlier, and was at the lowest level since
March 27, 1956.
There was a decline of 6.2% from the $6.28 of
the corresponding date a year ago.

mixed; four regions
four reported dips, and

BRUNSWICK, N. J.—E;

EAST

The Wholesale

nine major geo¬

were

last year,

Fifty-six Canadian failures

E. J. Roberts Office
com¬

Wholesale Food Price Index at New 1959 Low

increases occurred in all

graphic regions. Tolls rose most noticeably in the South Atlantic,
up to 20 from 12, in the West South
Central, up to 22 from 12, and
in the
Pacific, up to 60 from 51. Meanwhile, Middle Atlantic fail¬
ures edged to 87 from
82, and East North Central to 48 from 44.
Trends from 1958, on the other
i

292,000

parable 1958 period.

pre¬

vailed in other lines.
The week-to-week

about

the season through last
bales, against 474,000 in the

Exports for

Exchange.

amounted

fail¬

compardfee 1958 levels

but increases from

year ago

Cotton

Contrasting declines brought

(1611)

3rd Week

October
Department store sales
the

week, for Sept. 26, an
weeks
Oct.

ended Oct.
3

the like period

increase

change
a

was

last

shown.

reported

3% increase.

Four With
LOUIS,

—

over

year.

For

DENVER,

ment Co.

Avenue.

well they felt...
them because

Colo.

James

—

818 Seventeenth Street. He

Oakland

was

of them

annual

checkups no matter how.

stone is now with Amos C. Sudler

many

habit of having

Jan. 1 to Oct. 3 showed

(Special to TheFinancial Chronicle)

p°lznin. and Mrs. Lillian

cancer...

because they had made e

Now With Amos Sudler
N.

could ten

800,000 Ameri¬
alive today, cured

years ago.

Rosalsky have joined the staff of
C.
Christopher &
Co., 5100

than they

cans are

the 1958 period.
:

George

curing many more

tors are
cancers

week ended Oct. 3 decreased 9%
In the preceding week Sept. 26 a
the four weeks ended Oct. 3 no

Kiriakos, Baalis B. Mornin, Doro-

£ea

Reserve System department store

Christopher

Mo.

Oct.

(Special to The Financial Chronicle)

ST.

ended

last year.

increase was noted.

According to the Federal

week

you're worried

In the preceding
increase of 7% was reported. For the four
3% increase was registered and for Jan. 1

sales in New York City for the
over

the

for

Index

the like period

below

If It's cancer

country-wide basis as taken from

on a

Board's

Reserve

Federal

decreased

all of

they went

to their doctors in

time!

Make annual checkups
a

habit... for lifel

previously with Allen Invest-

AMERICAN CANCER

SOCIETY

The Commercial and Financial Chronicle

(1612)

.'/.

Thursday, October 15, 1959

ic INDICATES

Now in

Securities

Abbott-Warner Co., Inc.
,e
,v
Aug. 12 (letter of notification) 62,500 shares of common
stock (no par).
Price—$2.70 per share.
Proceeds—To
prepare estimates and to submit bids, a? a prime con¬
tractor on specialized construction projects. Office—123
Denick Ave., Youngstown, Ohio. Underwriter—Strathmore Securities,
Inc., 605 Park Bldg., Pittsburgh 22, Pa.
.

Abco, Inc.
Oct. 5 (letter oi notification) 150,000 shares of common
stock (par SI). Price—S2 per share. Proceeds—For plant
and equipment, and working capital. Office—411 W. 5th
St., Los Angeles, Calif. Underwriter—Baron, Black, Kolb
& Lawrence, Inc., Beverly Hills, Calif.
•

Acme Missiles & Construction Corp.

(10/19-23)
July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for public sale
for the account of the company, and 50,000 shares will be
offered for the accounts of, the present holders thereof.
Price—$6 per share.
Proceeds—For general corporate
purposes, including additional personnel, office space,
equipment, and the provision of funds necessary to
veompete for certain contracts. Office—2949 Long Beach
Koad, Oceanside, L. I., N. Y.
Underwriter — Myron A.
Lomasney & Co., New York.
Aeronautical

Electronics, Inc.
Sept. 21 (letter of notification) 78,350 shares of common
stock

(par $1)

to be offered for subscription by stock¬

holders of record Oct.
in

1, 1959 for

one

full share but not

ol five shares.

Plights expire 30 days after of¬
Price—To be supplied by amendment. Proceeds

excess

fering.
—For

construction, purchase of inventory and additional
working capital. Office—Raleigh-Durham Airport, P. O,

Box

6527, Raleigh, N. C.

Underwriter—None.

Aircraft

Dynamics International Corp.
(letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds
—For general corporate purposes.
Office—229 S. State
Street,. Dover, Del. Underwriter—Aviation investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
•

Airtronics

International

Corp. of Florida

Aug. 31 (letter of notification) 109,090 shares of
stock

*
common

(par 10 cents). Price—$2.75 per share.-

On Oct. 5
200,000
cents), to be sold at
$2.00 per share.
Proceeds—To be used to pay off loan
and increase working capital. Office—Fort Lauderdale,
Fla. Underwriter—Frank B. Bateman, Ltd., Palm Beach,
letter

the

Fla.

notification

of.

amended

was

stock

common

(par

cover

Frank P. Hunt &

Co., Inc., Rochester, N. Y.

American Educational Life Insurance Co.

(10/19-23)

Sept. 15 filed 3,800,000 shares of class A

four

stock.

class A

Price—$25

per

stock

unit.

and

one

Proceeds—For

class

•

%/'

Aug. 28 filed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬
common
stocks.
Office—301 W. 11th Street,
City, Mo. Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc.
■/;■ „y:

ment

Co., Inc. (11/2-6)
225,000 shares of common stock.
Price—To
supplied" by amendment.
Proceeds—Will go to sell¬
ing stockholder, Electric Bond & Share Co. which upon
completion of the offering will hold 52.3%' of the total
outstanding stock of American
Foreign Power Co.
Boston

—

Lazard

Freres

Co.

and

Audio-Dynamics Corp.
Sept/23 (letter of notification) 200,000 shares of common
stock /(par $1).- Price—$1.50 per share.
Proceeds—To
purchase stores and equipment and for working capital.
Office—Cai'ritz Building, Suite 915-16, 1625 Eye Street,
N. W., Washington, D. C.
Underwriter—Balough & Co.,

First

The

Corp., both of New York.

Inc., Washington, D. C.

American

Australian

Heritage Life Insurance Co. (19/28)
Oct 5 filed 360,000 shares Qf common stock
(par $1).
These shares will be exchanged for 57,492 of the 57,500
shares of the outstanding stock of Reliable Insurance
Co.
The new shares will be subsequently offered tc
the public.
Office—218 West Adams Street, Jackson¬
ville, Fla.
Underwriters—Merrill Lynch, Pierce, Fenner
&
Smith Inc., New York,
and Pierce, Carrison,
Wulbern, Inc., Jacksonville, Fla.
25

Grazing & Pastoral Co., Ltd.
/
4,000,000 shares of common stock. Price—
(56% cents per share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
Office
1301 Avenue L, Cisco, Texas.
Underwriter —

Jan.

—

•

and

expenditures.

Office—513

Underwriters—Lehman

Inter¬

Mart, New Orleans, La.
Underwriter—
Securities Corp., New Orleans, La. The SEC
a hearing, to begin on Sept. 2, which will
determine whether a stop order will be issued suspend¬
ing the offering.

eight

Mass.

weeks.
•

Alaska Mines & Minerals

Inc.

feb. 25 filed 1,431,200 shares of common stock (par $1),
of which 1,000,000 shares are to be offered publicly and

431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
chares

by such debenture holders may be made by
delivery of debentures at par plus interest with premium
Cor Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares
purchased
for cash

rate of

for the

6% debentures of the parent at the
for each five shares purchased. Price—$1.25

one

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,

per

Alaska.

Underwriter

Statement

was

Alliance

—

withdrawn

Tire

named

by amendment.

Sept. 30.

Rubber Co.

Ltd.

Sept. 9 filed 100,000 shares of class A stock. Price—$12.60
per share, payable either in cash or in bonds issued
by
the State

of Israel.

Proceeds—For expansion.

Hadera, Israel.
Agent
Washington, D. C.
Allied

Small

—

Business

Harry E. Brager Associates,
Investment Corp.

Sept. 29 filed 100,000 shares of
JPrice

equity

$11

capita]

concerns.

per

Office—

stock

common

(par $8).

share. Proceeds—To be used to provide
and long-term loans to small business

Office—Washington,

Underwriter—To

supplied by amendment.

Life

—

:
•

Insurance Co.

First

Investment

filed

605,000

located

Milwaukee, and has been approved by

Planning

North Water St.,
•

Milwaukee, Wis.

Bankers

Management Corp.
Sept. 10 (letter of notification) 300.000 shares of common
stock (par 25 cents).
Price—$1 per share. Proceeds—
For

working capital. Office—1404 Main Street, Houston
Underwriter—Daggett Securities, Inc., Newark,
Offering—Expected in about 30 days.

2, Texas.
N. J.

Bankers Preferred Life Insurance Co.
Jan. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.
Underwriter—Ringsby Underwriters, Inc., Denver 2*

expenses
pany.

Colo.

Anthony Pools, Inc.
28

Parks

change take place by Dec. 3, .1959.
The exchange offer
will expire on Nov. 13, unless extended. Office—721

(10/21-22)
Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—For
expansion and general corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New York, N. Y.
•

Newton

Highlands,
& Co., Inc., 52
Offering—Expected prior to
—

Everett

the Federal Reserve Board on the condition that the ex¬

Anodyne, Inc., Bayside, L. I., N. Y.

Sept.

Office

market.

of Milwaukee
V/
shares of common stock? to be
exchange for common stock of Marshall
& Ilsley Bank and the capital shares of the Northern
Bank, on the basis of two of the issuing company's shares
for each such Marshall & Ilsley share, and 10% of tjhe
issuing company's shares for each such Northern Bank
share.
The exchange offer is conditioned upon the issu¬
ing company acquiring by exchange not less than 80%
of the outstanding shares of the other banks, which are
also

•
Ampal-American Israel Corp.
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3,000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To
develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬
pected later this year.

•

Inc.

Bank Stock Corp.

Sept.

Office—113 Northeast 23rd Street, Oklahoma

City, Okla.
Underwriter
Co., Washington, D. C.

civilian

Underwriter—G.

offered

including, possibly, the acquisition of similarly engaged
companies.

;

Electrosonics,

Nov. 13.

Price—$12 per share. Proceeds—To
raise the ratio of its capital stock, surplus, and surplus
reserve to premium writings,
to increase-.underwriting
capacity, and for general corporate purposes..Office-4750 Sheridan Road, Chicago, 111. Underwriter—None.
Service

Brothers, New York, and Lester

Broadway, New York City.

about Nov. 27.

American

Harrison

the

into

Co.

Sept. 14 filed 375,000 shares of common stock, of which
300,000 shares are to be publicly offered.
Price—$3.50
per share.
Proceeds—For general corporate purposes,

Sept. 25 filed 133,000 shares of common stock (no par).
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
the provision of funds to assist the company's expansion

Sept. 22 filed 166,668% shares of capital stock (par $3),
to be offered to holders of outstanding shares of such
stock of record Oct. 26, 1959, in the ratio of one new
share for each eight shares then held; rights to expire
or

Lindsay

Insurance

•

Ryons & Co., Los Angeles Calif.

had scheduled

Motorists

is President.

Kamon

Oil

national Trade

American

Baker

Tools, Inc. (11/16)
Oct. 7 filed 550,000 shares of common stock (par $1),
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Business—Company designs, manufac¬
tures, and distributes a broad line of specialized tools
and equipment used throughout the world in drilling.

(par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of 3 shares of common ($1 each) and 1 share of pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬
struction

Robert

None.

Syndicate, Inc.
600,000 shares of common stock

filed

13 filed

At par

Investors

American

7 filed

Underwriters

Kansas

•

American & Foreign Power

Oct.

—

Associations Investment Fund

general cor¬

%;•%;//•■% 7.'

•

sup¬

Drive, Phoenix, Ariz. Under¬
Mitchum, Jones & Templeton, Los Angeles,
Calif., and Walston & Co., Inc., New York.
writers

porate purposes. Office—Nashville, Tenn, Underwriter—
Standard Securities Corp., Third National Bank Bldg.,

Nashville, Tenn.

thereof. Price—To be

Southern Pacific

734 East

stock

common

(par $1), (voting), and 950,000 shares of class B common
stock (par $1), (non-voting), to be offered in units of

amendment.

Offering—Expected in about six

ISSUE

counts of the present holders

Oil

REVISED

plied by amendment,
Proceeds—For general corporate
purposes, including the provision of funds for the ex¬
pansion of Cortez Chemicals Co., a subsidiary, the addi¬
tion to working capital of the issuing company, and the
partial liquidation of its unfunded indebtedness. Office—

working capital, to pay off a note and
expanding and improving the boat building business.
Street, Warwick, R. I. Underwriter—

Office—Division

Co., Inc.
Sept. 17 filed 3,000,000 shares of common stock (par
five cents).
Price—$2.50 per share. Proceeds—For fur¬
ther development and exploration of the oil and gas po¬
tential of the company's Alaska properties. Office—80
Wall St., New York.
Underwriter—To be supplied by

Consolidated

Alaska

ITEMS

•

for

Registration

—For additional

June

Sept. 25

ADDITIONS

SINCE

outstanding common
stock. Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office—5871 Firestone Boule¬
vard, South Gate, Calif.
Underwriter — Marron, Edens,

• Bartell
Broadcasting Corp.
Sept. 17 (letter of notification) 54,545 shares of capital
stock
(par $1). Price—$5.50 per share. Proceeds—For
working capital and to finance expanded operations of

Sloss

the

200,000

Co., Inc., New York.

Offering

—

Expected

November.

company.

Office—730 Fifth Ave., New York, N. Y.
W. Schroeder & Co., Inc., New York,

Underwriter—W.

Anthony Powercraft
Sept. 8 (letter of notification)

N. Y.
•

241,200 shares of 5% cu¬

Offering—Expected

any

day.

•

Barton's

Sept. 29

convertible preferred stock to be offered for
subscription by common stockholders at the rate of two

Candy Corp.
Sept. 28 filed 175,000 shares of common stock (par $1),
of which 150,000 shares are to be publicly offered. Price

mon

preferred shares for each three shares of

—To be supplied by amendment.

American

Boatbuilding; Corp. (letter of notification) 100,000 shares of com¬
stock (par 15
cents). Price—$3 per share. Proceeds

mulative

held.

Price—-At par ($1 per share).

chase

The

stock

corporate purposes, including the financing of accounts re¬

tools, construction and for working
Office—5871
E.
Firestone
Boulevard, South

ceivable, the provision of funds for new machinery and

Gate, Calif.

new

Underwriter—None.

comprise
to attract

Tribune.

largest

ricli market for

these

Your

and

your

securities. Your best medium

•.

other midwest prospects

krthi1 Chicago

advertising in the Tribune will

newspaper

reach the

readership in Mid America. Both profes¬

sional buyers and the

general public depend

daily. For details, call

your

the Tribune

Tribune representative today.

(Chicago ^Tribune
WORLD'S

OKt ATE S 7

NEWSPAPER

Plastics Corp.
(letter of notification) 260,686 shares of com¬
stock (par $1) to be offered for subscription by

Sept. 30
mon

tockholders and then to the public. Of the total shares
103,430 shares are under options and siib-~
scriptions. Price—$1.25 per share. Proceeds—For relocat¬
to .be offered,

ing and improving manufacturing plant; advertising, ad¬
ditional inventories and working capital. Office—1355
River Rd., Eugene, Ore. Underwriter—Zilka, Smither &
Co., Inc., Portland, Ore.
Arizona

Fertilizer

Chemical

Co.

(19 21)

Sept. 24 filed 100,000^shares of common stock (par $2.50)
75,000 shares are to be offered for the account

of which

the

issuing

company,

and

25,000

equipment, for construction of new stores and improve¬
present outlets, and fcr working capital. Office
—80 DeKalb Avenue, Brooklyn, N. Y.
Underwriter—•

ments of
i

Architectural

1,400,000 stoekowners in Chicago and Mid America

Proceeds—For general

pur¬

inventory,

capital.

INVESTORS ARE PLENTIFUL!

common

Proceeds—To

for

the

ac¬

D.
•

Blair

Basic

Co.

Materials,

Inc.

April 9 (letter of notification) 1,200,000 shares of comstock^Cpar 19-cents). -Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co.. Albuquerque,
N. Mex. Letter became effective on Sept. 21.

"Ynon

—

•

BBM

Photocopy

Manufacturing

(10/19-23)

Corp.
.

Aug. 27 (letter of notification) 100,000 shares of capital
(par five cents). Price—$3 per share. Proceeds—

stock

For general

corporate purposes.

Office—42 W. 15th St.,

Volume

190

Number

5890

The Commercial and Financial Chronicle

(1613)

New

York, N. Y, Underwriter—Myron A. Lomasney &
Co., New York, N. Y.
'

company's products, with the unsubscribed shares to be
offered to the public. Price—$1 per share.
Proceeds—

,• Berens Real Estate Investment Corp.
July 31 filed $1,200,000 of 6V2% debentures, due Sept. 15,

'1969, and 80,000 shares of common stock (par $5). Price
—$500 per unit, each unit to consist of $300 of deben¬

capital.

tures

and

provide

Underwriter—Berens

dress.
•

Securities

Corp.,

same

Sept.

ad¬

filed

(10/20-21)

Sept. 9 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
expansion

units
shares

additional working

and

capital. Office—Los
Angeles, Calif. Underwriter—Shields & Co.. New York.

15-year

Oct.

subordinated

1, 1974, and 210,000

($2.50 par), to be offered

Proceeds—For

debentures

Price

stock.

—

the

and

five

supplied by

purchase

land

and

thereon, and for the manufacture and in¬

400,000 shares of common stock, to be
initially to independent dealers who handle the

equipment.

necessary

Street, El Paso, Texas.

the basis of 49 new shares for each share then
Priced—To, be supplied by amendment. Proceeds—

general corporate purposes.
Office —1609
Street, El Paso, Texas. Underwriter—None.
Breuer & Curran

Office—1609

Texas

Oil Co.

Sept. 24 filed
in

$1,500,000 of co-ownership participations
gas exploration fund. Price—The minimum

oil and

participations will be $10,000. Proceeds—To conduct oil
and gas exploration activities. Office—3510 Prudential

Plaza, Chicago, 111.
>,

stallation

filed

offered

stock

common

construction

For

$2,100,000

$50 principal amount

Rolling Mills, Inc.
Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record
Aug. 31,
1959,

common

amendment.

★ Blanch-Ette, Inc.
12

of
of

•

border Steel

held.

Roiling Mills, Inc.

sinking fund debentures, due

•

Biochemical Procedures, Inc.

Oct.

funds for advertising and increase working,
Office—10232 South Kedzie Ave., Chicago, 111.

Border Steel

working capital. Office—1722 L St. N. W., Washington
-D.

Co., Dallas, Texas, and Harold S. SteWart & Co., El Paso,
Texas.

dealerships; increase inventories, and

new

Underwriter—None.

Proceeds—For

stock.

common

establish

Texas

Burch Oil Co..

Sept. 25 (letter of ontification) 120,000 shares of class A
common stock
(par five cents). Price—$2.50 per share.

Underwriters—First Southwest

Proceeds—For

(Thursday)

CALENDAR

ISSUE

N EW
October

Gertsch

Products, Inc

(Amos

Treat

Great

Wasserm'an & Co.)

Truman,

and

Inc.

Co.,

'v'--

Lakes

$300,000

Hilton

October

National

Shell

(Myron

California

Liquid

(Van

„

(Wilson,

•

(Milton

Blauner

National Key Co.——
1—
Common
^<C. E. Unterberg, Towbfn Co,) 200,000 shares
'

...Common

Poi'ce-Alume, Inc.•/_——.
Realsite

*80,000

•

(Shields

—Common
Common

D1T-MCO, Inc.
(Midland Securities Co., Inc. and Barret,
& Co.. Inc.):33.333 shares

Corp

Virginia

First

Industries,

'Guerdon

(Blair

.—Common
Common

Inc
400,000

Inc.)

Co..

(The

Haupt

Southern

Leverton, Reiner

(Jaffce,

Vernors
(Baker, S

$70,000,000

Common

Eiectro-Sonic

282 760

(L.

(Baker, Simnnds &

(Myron A.

Lyon

(Wednesday)

Acceptance

San

(Smith,

National

Capital Stock
200,000 shares

Preferred

Gas Transmission Corp

Texas

Read

(Dillon,

Western

(Bids

a.m.

Oil

Recovery

Oil

Oil Recovery

Tools,

Brothers

Debentures

—

October 26

Bonds

$12,000,000

(William

(Blair

R.-Staats & Co.)

Co..

Inc.)

Co.)

& Co.)

550,000 shares

$500,000

(Tuesday)

received)

November

$250,000,000

EST)

December

(Tuesday)

Invited*

York, Inc.

invited)

December

Fall River

Electric

$7,500,000

Common

120.000 shares

...Common

December

$6,000,000

(Wednesday)

New England Power Co
(Bids

to
:

invited)

Preferred
100,000

held.

The remaining 2,000 shares are being

the account of a selling

stockholder. Price—To

supplied by amendment. Proceeds—For

general cor¬

porate purposes including the repayment of outstanding
bank loans in the amount of $425,000, the provision of

funds for the 1959-60 construction program, and for
working capital. Office—Stiles Lane, New Haven, Conn.
Underwriter—Putnam & Co., Hartford, Conn. Offering
Central

and South West Corp.

(10/29)

shares of common stock (par $5).
discharge bank borrowings in
$3,200,000, and to purchase during 1959-60
additional shares of common stock of Public Service Co.
of Oklahoma, Southwestern Electric Power Co., and West
Texas Utilities Co. Office—902 Market St., Wilmington,
Del.
Underwriters—To be determined by competitive
the amount of

& Co., Inc., and Har-

&Go., Inc. (jointly); Lehman Brothers and
& Co. (jointly); The First Boston Corp.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬

riman Ripley

ly).
Preferred

$3,000,000

Bonds

invited)

for

Lazard

(Tuesday)

invited)

four shares

bidding. Probable bidders: Blyth

^.Bonds

Light Co...

Bonds

$50,000,000

Worcester County Electric Co._—
(Bids

48,080 shares common stock (par $2), of which

Proceeds—To prepay and

$16,000,000

Edison Co. of New

Oct. 2 filed

Sept. 21 filed 350,000

(Tuesday)
Bonds

a.m.

Offering—Expected in late October.

Carwin Co.

—Expected early in November..

Debens.

Gulf States Utilities Co
(Bids

•

—Common
&

indirectly in the life insurance business. Office—15 Wil¬
Street, New York. Underwriter—Capital Sponsors,

liam

sold

(Monday)

Ryons

Lester,

(Bids

190,953 shares

"Life Insurance Fund" shares. Price

46,080 shares are to be offered for subscription by com¬
stockholders at the rate of one new share for each

Louisiana Gas Service Co

(Monday)

Manufacturing Co.—

Frantz

before Dec. 1, 1960,

mon

Common

Malkan

(Bids

Financial Corp. of the West.

First

November

Common
invited)

American Telephone & Telegraph Co

5,500 shares

Electric Corp.
to be

and

(Bids

Inc.)

Common

•Blrtu

Corp

(Bids

Aug. 3 filed 500,000

Inc., New York.

Common

Inc...

(Arnold

$550,000

Brothers)

(Lehman Brothers)

Rochester Gas &

$10,009,000

Gold Medal Studios, Inc

(Thursday)

Corp.-—
(Lehman

& Co.)

(Monday)

November

Consolidated
October

Debentures

Curtis and Eastman Dillon,

$8,000,000

EDT)

These warrants entitle the
on

supplied by amendment. Proceeds—For invest¬
ment in the securities of companies engaged directly or

(Hemphill, Noyes & Co.) 375,000 shares

Bonds

Electric Co

Massachusetts

thereof to purchase,

Capital Shares, Inc.

Common
$72,858

Kayser-Roth Corp.

$15,000,000

Co.)

(par $2).

Canada.

$300,000

(Wednesday)

500,000

November 9

Common

—

& Co.)

Weld

(White,

Co.)

200.000 shares

Co.)

Barney

Co., Inc

stockholders—underwritten by Blyth & Co.,

$300,000

—

each

$300,000

Diego Gas & Electric Co

(Offering

(Lehman

Common

100,000 shares

Glass, Inc

Knox

Union Securities

& Templeton

Jones
,

•

(10/19-23)

payment of $4 per share, one share of stock for
warrant held.
Office—55 Yonge Street, Toronto,

upon

Common

Corp

Webber, Jackson &

(Paine,

& Chemical Co
..Common
and Walston A- Co., Inc.)

Arizona Fertilizer
(Mitchum,

Inc.)

Co.,

Co.)

Lomasney

November
General

Baker

—

(Ross,

by the company in 1953.

holders

Common

Inc.—

Kahn & Infante)

(Heft,

$750,000

October 21

.Common

Washington Planning Corp..

Co.,.Inc. and William J. Mericka & Co., Inc.)

Anodyne, Inc.

Co., Inc

Sherman

Radio Frequency Co.,

Debentures

Ale, Inc.:

Ginger

(Monday)

Laboratories, Inc.—.

135,000 shares

Ginger Ale, Inc
Common
monds & Co., Inc. and William J. Mericka & Co., Inc.)

Vernors

Corp.

Campbell Chibougamau Mines Ltd.
30 filed 350,000 shares of common stock, to be
reserved for issuance upon the exercise of warrants is¬

$8,000,000

*■

Telegraph Co.. .Debs.

Co.)

sued

$1,000,000

invited)

Camloc Fastener

—To be

Gulf Utilities, Inc

(Bids

Plywood Co. for

share. Proceeds — To selling stockholder.
Office—22 Spring Valley Road, Paramus, N, J.
Under¬
writer—Van Alstyne, Noel & Co., New York.

.Bonds

EST)

a.m.

Price*
Proceeds—To purchase the

of Durable

Price —$9 per

(Lazarcl Freres & Co. and The First Boston-Corp.) 225,000 shares

....Common

Bell Telephone &

Southern

190,000

November 2

——Debentures

Co.)

American & Foreign Power

•

(Ira

share).

facilities

Sept.

300,000

Co.>

James

America.——

•

Common

Sachs

per

Sept. 11 filed 150,500 shares of common stock

$150,000

Co., Inc

Public Service

600,000 shares

Co.)

of America

Insul-Cup Corp.
Servo Corp. of

Fitch, North

—

Lemon

(Johnston,

Foster Grant

Common

Inc.)

(Darius

Common

...

350,000

Electronics Funding Corp..

65,877 shares

invited)

and

$690,000, with the balance to be used for working capi¬
tal.
Office—Calpella, Calif. Underwriter—The offering
is to be made by Ramond Benjamin Robbins, one of the
nine promoters, the list of which also includes Harry
Ernest Holt, of Eureka, Calif., President of the company.

(Thursday)
.

(Bids

121,057

($5,000

mill

Bonds

Co.)

California Mutual Co-Ply, Inc.
Sept. 14 filed 140 shares of voting common stock.
—At par

Common

McDonald

$20,000,000

—

and

Co.

October

Common

Marache & Co.)

Debentures
Merrill Lynch, Pierce,
$30,000,000

Inc. )

Inc.

(Goldman,

100.000

Co.)

Corp.

(Granbery,

(Goldman, ,Sachs

Wisconsin

Biochemical Procedures, Inc

Digitronics

Therm-O-Disc,

20 '(Tuesday)

October

and

invited)

Lake City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.

Central and South West Corp..

Brothers)

Co.: York*# Co. and Mason

(J. S. Strauss &

•

Inc.

Puget Sound Power & Light Co....
(Bids

transport equipment, and for work¬

Salt

.Common

Smith,
360,000

Inc.)

—

Co.

& Smith

Fenner

...Common

Co.—

$25,000,000

Fenner

Wulbern,

Rhoades &

new

California Metals Corp.
July 27 filed 2,500,000 shares of common stock: Price—
At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,

Debentures

Corp

Loeb,

Debentures

York & Co. and Mason Brothers) $800,000

Hardware

Simon

$600,000

Co.)

Co.——

Strauss & Co.;

(J. S.

Ferman

(Carl M.

purchase

ing capital. Address—P. O. Box 5073, Sacramento, Calif.
Underwriter—Kidder, Peabody & Co., New York.

(Wednesday)

Pierce,

Carrison,

Hilton Hotels

Class A

—

(Robert

Hardware

Simon

Lynch,

Pierce,

50,000 shares

Co.,-Inc.)

<fc

. .

Common

Corp.——

Microwave

Narda

(Merrill

$20,000,000

underwriting)

(No

85,000

American Heritage Life Insurance Co

Debentures

Canada—

(City 01)

••

Inc.)

Common
$629,976

..Common

Peabody & Co.) 66,000 shares

(Kidder,

Montreal

Co.,

(Blyth &

Common

October 28

•'

California

ness,

$20,000,000

Co.—

Co.,

Common

Inc..

Bros.,

Weld

of record Oct. 23,
8 shares then

each

...Bonds

$300,000

stockholders—no

(Offering

Maul

217,490 shares

Window Corp
underwriting)

Aluminum

Lenahan

(Tuesday)

invited)

share for

supplied by amendment. Proceeds—To repay indebted¬

Interstate Fire & Casualty
(White,

Corp...—

Philadelpnia Corp.)

(First

& Co.)

Peabody

(Kidder,

Philadelphia

First

Common
shares

Stock

new

one

Liquid Gas Corp. (10/19-23)
Sept. 16 filed 100,000 shares of common stock (par $1), of
which 55,000 shares are to be offered for the account of
the issuing company, and 45,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holder thereof (of which latter amount 2,000
shares will be sold to certain employees) r Price—To be

$175,000

200,000

Co.)

Northern Natural Gas

.Common

—

•

Common

Inc.)

Co.,

to holders of such stock

stock (par $5),

None.

Corp.__Common

$340,000

Higgins^and Evans, MacCormack & Co.)
$858,500
—

October

Common

Forms.—-

Co.)

Florida Power & Light

$150,000

Securities Corp.!

(Plymouth

Business

Lemon

(Bids

Corp.—

Con-O-Veyor

Ennis

$368,000

...

—Common

.Debentures

$3,500,000

Co.)

Holman

Johnson

$1,354,500

Co.)

Inc.—

Dairies,
(Hirsch

Noel

Alstyne,

Crystal

Manufacturing

(Johnston,

Daitch

Urethan Corp.

100,000 shares-

& Co.)

Inc.)

Co.,

basis

common

general corporate purposes, including working capital.
Office—20 Valley
St., Endwell, N. Y. Underwriter—

Common

;
&

the

Corp.

17,532^shares of

held; rights to expire on or about Nov. 16 (subject to
SEC
approval). Price—$64 per share. Proceeds—For

$30,000,000

Enterprises, Inc.—

Common

$300,000

Corp.______

Fastener

Camloc

|R.

Town

Corpv^__™~~~~Xominon

Gas

Peabodv

(Kidder,

Co.)

Lomasney

Fenner

$299,799

McCarty

Industries

to be offered

Pierce,

Span America Boat Co., Inc.—

Manufacturing Corp

BBM Photocopy

Co.)

(Schweickart

$1,200,000

Co.)

Inc.)

Lynch,

Building, Baltimore 2, Md.

Cadre

Sept. 25 filed

....Debentures

Smith

Electronics

..Common

Securities Corp.) $23,750,000

(Standard

..Common

Merrill

and

Co.

(Campbell,

American Educational Life Insurance Co.—Common

•

120,000

Corp.

Rhoades

(Lee

(Monday)

Lomasney

(Myron

Corp..
McDowell)

Ranney Refrigerator

Construction Corp

Co.). 107,1,43

Metropolitan Telecommunications Corp.—Common

200,000

Corp.)

October 19
Acme Missiles &
*

Hotel

stockholders—Underwritten by The* First

Boston

•

Blosser

Fire Insurance Co.___—Common

Union

(Offering

(Carl

(Friday)

Bowling

(Straus,

Bank

—Capital Stock

(Schwabacher

..Common

Tassette, Inci

building and equipping stations and truck
stop and additional working capital. Office—G/o Gar¬
land D. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town

10:30

Freres

Bids—Tentatively expected to be received up to
a.m.
(Chicago time) on Oct. 29.

Century

Properties, Los Angeles, Calif.

Aug. 5 (letter of notification) 33,880 shares of common
stock (par $1), being offered for subscription by stock¬
holders of record Sept. 1, 1959 on the basis of one new
Continued

on page

The Commercial and Financial Chronicle

(1614)

Continued from page

stock/ for the shares to be pffered to the underwriter, $1
per share; for the shares to be offered to the public, the

• Gilberts

June

1959.

Price—$4 per
Office—1758

Angeles, Calif.
Underwriter—None Biey Stein, Presi¬
dent, will be offered any unsubscribed shares until Oct.
3.

1959/

■

:"./■..///'/

Office—Calle

purposes.

Cuba.
•

23,

Underwriter—H.

No.

Kook

offered

Chadbourn

(formerly Peck & Harvey Mfg.
;•
CO.): ■ /^:/ -/■ / :/./V/Z,/, /',// '•///. ;;;/.///;//'■ /
Sept. 23 (letter of notification) 100,000 shares of com¬
mon
stock
(par 50 cents).
Price—$3 per share. Pro¬
ceeds—To pay bank loans and loans to stockholders and
others and for working capital.
Office—5642-50" North
Western Avenue,
Chicago 45, 111.
Underwriter—Sim¬
mons & Co.,
(handling the books) and Plymouth Secu¬
rities Corp., both of New York, N. Y. Offering—Expected

Inc.

Gotham,

(10/15)

Sept. 28 filed $2,500,000 of 6% convertible subordinated
debentures, due 1974, with warrants to purchase 200,000
shares of common stock, to be offered for subscription
by holders of its common stock at the rate of $100 of
debentures, with an attached warrant to purchase 10
common
shares for cash for each 100 common shares
held

Oct.

about

Oct.

about

1959; rights to expire on or
supplied by amendment,

15,

Proceeds—For

general

Price—To

30.

corporate

including

purposes,

N. C. Underwriter—R. S.

Charlotte/The offering has been

Dickson & Co.

temporarily postponed.

Central

Phoenix,

Avenue,

China Telephone

Ariz.

Insurance Co.,

each

offered

shares then

held.

Unsubscribed shares

may

publicly.
Price—$4 per share.
Proceeds—
To
increase capital
and surplus.
Underwriter—None,
but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.
Cornbelt

Life

share.

Proceeds—To

credited

stated

capital

Cracker Barrel

Supermarkets, Inc.

Sept. 25 (letter of notification) 120,000 shares of common
(par 10 cents). Price—$2.50 per share. Proceeds—
For general corporate purposes.
Office—84-16 Astoria
Blvd., Queens, L. I., N. Y. Underwriter—Diran, Norman
& Co., New York.
Offering—Expected in early November.

Price—At

33,333

City,

Underwriters—Midland Securities Co.,, Inc.,-

Mo.

and

Fitch, North & Co., Inc., both of Kansas
The number of shares actually offered will
the price per share. The offering is expected

Barret,

City, Mo.

•

total

$500,000.

Diversified

working capital.

Ave., Cocoanut Grove, Miami, Fla.
' '
.

•

$25 par) and 12,559 shares of common

($1 par), 34,460

shares of the preferred and 9,059 shares of common are
.ssuable upon the exercise of stock options granted when

:he

assets

1958.

Norbute

Corp.

were

Underwriter—None.

Crusader Oil &

acquired

Aug.

stockholders

used

if Dorset! Laboratories,
Oct.

(letter

subordinated

convertible

convertible into

1960.

10-year

Price—At

face

6%
are

stock at $4 per share up to and

amount.

Proceeds—To

per

reduce

notes

payable, to purchase facilities and equipment, and
working capital. Office—401 E. Boyd St., Norman,,

for

Okla.

Underwriter—None.

Dow Chemical Co.

Sept. 3 filed 120,000 shares of
for

sale

employees

common stock to be offered

and

company

certain

its

subsidiary and associated companies. Subscriptions will
be accepted from Oct. 12 through Oct. 30.
Price—$68 per
share.

Drake

Associates

Aug. 20 filed $5,905,000 of limited partnership interests.
Price—$10,000 for each of 590 V2 units. Proceeds—To buy
York, from Webb & Knapp, Inc. Office—60 East 42nd St.,
Corp., and Peter I.
Feinberg Securities Corp., both of New York.

New York..Agents—Domax Securities

Drexelbrook

May

22 filed

Associates

$2,000^000 of partnership interests, to be

offered in units.
be

Price—$10,000 per unit. Proceeds—To
acquisitions.
Office —Broad
&
Streets, Philadelphia. Pa. Underwriter—None.

used "for

Chestnut

various

Dynex, Inc.
Aug. 6 filed 120,000

cents). Price—$5 per share.

common

stock

Proceeds—For

(par 25
general cor¬

porate purposes, including product research, the pur¬
chase of new equipment, and expansion. Office — 123

Syosset, L. I., N. Y. Underwriter—Myron A.
Lomasney & Co., New York.
ESA Mutual

Fund, Inc.

June 29 filed 2,000.000 shares of capital stock.

Price—To

ington, D. C.

record

working capital. Underwriter

amendment.

Commerce Oil Refining Corp.
Dec. 16, 1957 filed $25,000,000 of first mortgage bonds due

Debentures

including Nov. 1, 1962; thereafter at $8 per share
and including Nov. 1, 1965 and thereafter at $12

Cor

—

common

$160,000

debentures.

May 15, 1959.
The remaining
858,387 shares will be offered publicly by the under¬
writer on a "best efforts" basis.
Price—To be supplied
by amendment. Proceeds—For repayment of notes and

Plans With Insurance. Office—15 East 40th Street, New
York. Underwriter
None.
Offering — Expected some

Inc.

notification)

Eileen Way,

Gas

Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
841,613 shares will be offered on a one-for-one basis to

Aug. 14 filed
in
Shares in American Industry, of which $500,000 was for
Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans
and Systematic Investment

Goldman

Builders, Inc., with the balance to
working capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.
be

the Hotel Drake, located at 56th St. and Park Ave., New

7 -v

Crescent Petroleum Corp., Tulsa, Okla.
VTay 26 filed 48.460 shares of 5% convertible pfd. stock

Development Co.
$1,000,000 of Plans for Investment

•

Proceeds—For

amount.

Grand

Underwriter—None.

Financial

Jan.

face

Office—3208

Underwriter—None.

before

•

House, Inc.
Oct. 1 (letter of notification) $200,000 of debenture notes
of which $100,000 will be 5-year 7%, and $100,0Q0 will
be 10-year 8%, to be offered in multiples of $500 each.

—

time

' ;/''

7.. /'■

Credit

• Colonial Corp. of America
Sept. 3 filed 120,000 shares of common stock (par $1),
of which 60,000 shares are to be offered for account of
the company, and 60,000 shares for account of a selling
stockholder.
Price
To be supplied by amendment.
Proceeds—For working capital to finance current and
future expansion. Office—Woodbury, Tenn. Underwriter
—Bear, Stearns & Co., New York.
Columbian

including working Capital and the reduction of shortterm bank borrowings... Office—911/Broadway, Kansas

and

paid-in surplus. Office—12 North Galena Avenue, Freeport, 111. Underwriter—None.

Part of the pro¬

City Discount & Loan Co.
Oct. 7 (letter of notification) 150,000 shares of common
stock (no par). Price — $2 per share.
Proceeds — For
working capital.
Office—1206V2 Main St,, Vancouver,

•

(10/20-21 ):i'"
>•' •
shares of common stock (no par
value, $1 stated value).
Price >— To be supplied by
amendment.
Proceeds—For general corporate
purposes,
filed

stock

Wash.

D1T-MCO, Inc.

Sept.

share.

Co.

Sept. 29 filed 100,000 shares of common stock, to be of¬
fered to stockholders of record Sept. 15 on the basis of
one
share for each share then held.
Price—$4.50 per

City Discount & Loan Co.
July 30 (letter of notification) 120,000 shares of common
stock (no par). Price — $2.50 per share. Proceeds — For
working capital. Office—1005 Northeast Broadway, Port¬
land, Ore. Underwriter—R. G. Williams & Co., Inc., New
York, N. Y. has withdrawn as underwriter.

„

Underwriter—Ira Haupt & Co.,

Street, Jamaica, N. Y.
New York.

Cantor

Underwriter—None.

Del.

$51.20

Communities, Inc.
Sept. 25 filed 367,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and

for

be used to retire outstanding subordi¬
debentures not exchanged.
Office—Georgetown,

nated

—

Marine Corp.

The deben¬

as to
principal and interest by
Supermarkets Inc., the parent company..
per unit.
Proceeds — For repayment of

notes;'to develop and construct shopping centers and a
super-market under existing purchase contracts and for
working capital. Name Changed — Company formerly
known as Dilbert's Properties, Inc.
Office—93-02 151st

depend

also

may

the

Freeport, III.
Sept. 29 filed 200,000 shares of common stock to be
offered
for
subscription by common stockholders of
record Sept. 15, 1959, at the rate of four new shares

applied to the reduction of

short-term notes due within one year.

price at the time of sale. Proceeds—For general
purposes,
including working capital. Under¬

Cornbelt

Acceptance

but will be initially

time. Price—To be related to

12 shares of common stock.

2,000 shares of preferred

Corp.
June 29 filed $600,000 of series F 6% five-year subor¬
dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,
at face value, on the maturity dates^of those securities
ao
long as there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—
To increase or maintain the working capital of the com¬

ceeds

(par one cent) to be
principal amount of

L
Oct. 6 (letter of notification) 300,000 shares of common
stock
(par 10 cents). Price—$1 per share. Proceeds—
For working capital.
Office—24 State St., New York 4,

subscription by stockholders and
the company's subscribers; unsubscribed shares to fcfce
public. Price—At par ($25 per share). Proceeds—To in¬
stall a dial exchange at East Vassalboro, Maine; to con¬
struct a cable; to" repay notes, etc. Underwriter—None.

pany

time

from

if Corinto

Under¬

stock to be offered for

Citizens'

■■7/ ■ 7

Price

corporate

Co., South China, Maine

(letter of notification)

■

$50

guaranteed

are

writer—None.

Aug. 7

•

Grand

market

stock

fice—411

Mining Co.,

Dilbert's Quality

•

market

(letter of notification) 116,064 shares of com¬
(par $1) to be offered to present and future
foundation policyholders of the company. Price
$2 per
share. Proceeds—For surplus and working capital. OfSept

mon

/■'■-v;

■

Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital stock, of which
2,179,800 shares are to be offered solely to the holders
of previously-issued options. These shares, together with
the remaining 2,055,000 shares, may be offered for public
sale
by the holders thereof in the over-the-counter

Life Insurance Co.

Charter Oak

late' October. /

Cordillera

working capital and the acquisition of shares of the out¬
standing common stock of Davenport Hosiery Mills, Inc.,
of Chattanooga, Tenn. Office — 2417 North Davidson.

St., Charlotte

■

consisting

units

debentures and
tures

Copymation, Inc.

■

•

of common stock

600,000 shares)

956, Vedado, Havana,
Co., Inc., New York.

$4,400,000

to $2,500,000) of 20-year convertible debentures, due July 15,
1979
and
1,056,000 shares
(subsequently reduced to

rights to expire on Oct. 1,_ price will be related to the current price of the out¬
standing shares on the American Stock Exchange at the
share.
Proceeds—To reduce bank
time of the offering. Proceeds — For general corporate
South La Cienega Boulevard, Los

share for each 1C shares held^
loans.

Thursday, October 15, 1959

Development Corp.
(subsequently reduced

Leasing &

filed

•

Daitch

—

To be supplied by

■

Crystal Dairies, Inc. A10/19)
$3,500,000 of 5V2% convertible. subordi¬

supplied by amendment. Proceeds—For investment.
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc.,- Washington,
D.

Office—1028

Connecticut

Avenue, N. W., Wash¬

E. H. P. Corp.
Aug. 31 filed 160,000 shares of capital stock

debentures, due Oct. 1, 1979. Price — At 100% of
principal amount. Proceeds—For working capital.
Of¬

(par 10c),
of which 100,000 shares are to be
publicly offered. Price
—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to

of stock and $100 of debentures and nine shares of stock.

fice—Bronx,

distribute

Price—To

New York.

Sept.

Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 ana 3,000,000 shares of common stock to be
"offered in uints

construct

York.

amendment.

Proceeds

—

refinery. Underwriter—Lehman Brothers, New

—

selling stockholders.

Office

—

West

Adams

Chicago, 111.
Underwriters — The First Boston
and Glore, Forgan & Co., both of New York.
•

St.,
Corp.,

Coneita

Manufacturing Co.
Sept. 28 filed 100,000 shares of class A
10c). Price—$4
to prepay a

common stock

(par

share. Proceeds—For working capital;
bank note; and for machinery and equipment.
per

Office—73 Sunnyside Avenue, Stamford, Conn.
writer—Vermilye Bros., New York———

Under¬

Consolidated

stock
'

for

counts

holders, 75 cents per share, which is equal to the price
which the debentures are convertible into common

Co.,

then

the basis of

held.

one

Price—$1.50

new

per

share.

government contracts, reduce ac¬
payable, and increase working capital.
Office—
Highway, Troy, Ohio. - :
/

Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50).
price—$10 per share. Proceeds—For general corporate
purposes, including salaries, cars, promotion, inventory,
the

establishment of branch offices, expenses incidental
obtaining permission to do business in other states,

and

the establishment of

—1420

East

18th

contingency
Avenue, Denver, Colo.
a

Office
Underwriter—

reserve.

None.
•

Digitronics Corp.
be

such

of such

offered
stock

held

Proceeds

breakdown

insurance

(10/20)

—

the

the
or

basis of
about

Price

For

holders
one

outstanding

new

Oct. 20;

share for each five

rights to exprire

To be supplied by amendment.
general corporate purposes. Office —
—

breakdown insurance

for

the

policies

amount of $25

purchase price of

cents,

and for a public relations and publicity pro¬
Office—Hotel Troy Building, Troy, New York.

gram.

Underwriter—John

R. Boland & Co.,
Inc., New York.
Offering—Expected during the next two months. .;,<>■'/
•
ECon-O-Veyor Corp. (10 19-23)
Sept. 18 (letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For advertising and promotion; new
equipment, and

general corporate

purposes.

Office—224 Glen Cove Ave¬

Glen

nue,

Cove, N. Y. Underwriter—Plymouth
Corp., New York, N. Y.

rities

Secu¬

• Electronics
Development, Inc.
.—
'
Sept. 25 filed 115,459 shares of common stock (par 10c).
"Price—$3.50 per sharerProeeeds-^For plant erection, ad-~

vertising,

research

and
development,
and
working
Gill and West College Streets, State
College, Pa. Underwriter—First Broad Street Corp., 50
capital.

Sept. 25 filed 65,877 shares of capital stock (par 10 cents)
to

automobile

thruways, parkways and highways in the

South Dixie

about Nov.

Proceeds—To finance

the

—

Underwriter—Hirsch

of the record date

underwriter, respectively, to be publicly offered.
For the. shares to be offered to the debenture

York.

each four shares

Development Corp.
Aug. 28 filed 448,000 shares of common stock, of which
198,GOO shares are to be offered to holders of the issuing
company's 6% convertible debentures, and 100,000 shares
are to be offered to the underwriter, with the
remaining
150,000 shares, in addition to those shares described
above not subscribed for by the debenture holders and
Price

New

Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050" shares of common stock, of which
190,871 shares are to be offered to holders of outstanding

Offering—Indefinite.

if Commonwealth Edison Co.
Oct. 9 filed 4,250 shares of common stock (par $25).
Price
To be related, initially, to the current market
price for the stock at the time of the offering. Proceeds

filed

nated

follows: $1,000 of bonds and 48 shares

supplied by

Broad
•

Office

—

St., New York.

Electro-Sonic Labors

lories, Inc. (11/2)
Aug. 14 (letter df notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To retire outstanding bank loan; to increase
inventories;
for sales and promotional activities; to improve produc¬

Albertson, L. I., N. Y.

tion

facilities

and

machinery; for develop! jent and research and for

Underwriter—Granbery, Marache
Co., New York City. Offering—Expected in October.

and

acquir

new

and

improved tools

Volume

190

Number 5890

working capital.

Office

Island

City, N. Y.
New York, N. Y.

—

The Commercial and Financial Chronicle

35—54 Thirty-sixth St.y Long

Underwriter—L. D. Sherman

•••"":

rate

•

Electronic Communications, Inc.
Aug. 28 filed $5,000,000 of subordinated debentures, due
Sept. 15, 1974 (with warrants for purchase of 20 shares
of common stock for each
$1,000 of debentures).
To be supplied by amendment. Proceeds — For

corporate

28
of

filed -158,236

offered to

JFirst United Life Insurance Co.

Sept.

Co.,

(1615)

common

one

new

rights to expire

shares of common stock, to be
shareholders of record Oct. 15 at the

for

each

four

then

about Dec. 2.

Price—$5
For company reserves and expansion.
Office
Broadway, Gary, Ind., Underwriter—None.

Price—

•

general

on or

First Virginia Corp.

(10/20)
shares of class

■

per

held;
share.

475-79

—

Sept. 16 filed 600,000
A common stock
(par $1). Prices—To be supplied by amendment. Proceeds

-•

of The Purcellville

Electronics Funding Corp. (10/29)
v';'*"•
Sept. 15 (letter of notification) 75,000 shares of common
stock (par 10 cents).1, Price—$2
per share.
Proceeds—
To go to the company. Office—c/o Darius Inc.,. 90 Broad
Street, New York, 4, N. Y. Underwriter—Darius Inc.,
New

York, N. Y.

•—To
in

subject to the approval of the Federal Reserve System,
up to 3,600 shares of the common capital stock

Ennis

Securities. Corp.,

Aetna

Business

•

both

••

Oct.
due

the

issuing

are

Inc.;

Merrill Lynch, Pierce, Fenner &
Kidder, Peabody & Co. (jointly); Blyth
Co., IiiCi, and Lehman Brothers (jointly); White, Weld
& Co., and The First Boston Corp.
Bids—Expected to
be received up to 11:30 a.m.
(EST), Oct. 27.
and

to be publicly offered for the
5,000 shares are to be

Foster Grant Co., Inc.
(10/29)
Sept. 25 filed 190,000 shares of common stock (par $1)

company,

which 100,000 shares are to be sold for the account
of the issuing company, and 90,000 shares are to be sold
for the accounts of the present holders thereof. Price—

Proceeds—For general
including expansion and the pur¬
Office—214 West Knox St., Ennis,
Texas.
Underwriter—Kidder, Peabody & Co. Offering
—Expected in October.
<
;
..:
be

supplied by amendment.

corporate

Co.

Smith Inc.

by the company to its employees, and 167,490
shares, representing outstanding stock, are to be offered
for the accounts of the present holders thereof. Price—

chase

Light Co. (10/27)
1 filed $20,000,000 of first
mortgage bonds, series
Nov. 1, 1989.
Proceeds—To help finance the com¬

Stuart

offered

Power &

pany's construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

Forms,

45,000 shares
of

account

Trammell & Co. Office—2924 Columbia
Pike, Ar¬

Florida

Inc.-. (10/19-23) .
Sept. 25 filed 217,490 shares of common stock (par $2.50)
of which

purposes,

be supplied by amendment. Proceeds — To provide
for construction. .Office—Leominster, Mass. Un¬

funds

of equipment.

derwriter—Goldman, Sachs & Co., New York.
•

Foundation

Balanced

Equity Annuity Life Insurance Co*
—
21 filed $1,000,000 of Variable Annuity Policies,
less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts. Proceeds—For investment, etc.
Office—2480

Price—At

April

418

Price—No

Street,

•

Foundation
18

June

Price—At

Faradyne Electronics Corp.

418 Union

Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to be publicly offered.
Price—$5 per share.
Proceeds—For general corporate

Planning

vember.

(jointly);

Schrijver & Co.; Richard Bruce &

Offering—Expected in No¬

•

Proceeds—For

Oct. 1.

Office—

St., Nashville, Tenn. Investment Adviser— J.
Co., Nashville, Tenn. Distributor—Capital
Services, Inc. Statement effective Oct. 1.

mon

years

capital

retain

certificates,

sold

only

agricultural producers and cooperative associations of
producers. Price—$1 per share of stock; 25 cents

per

Proceeds—For general corporate
Office—Denison, Iowa.

unit of certificates.

purposes.

Fidelity Investment Corp., Phoenix, Ariz.
June 29 filed 1,799,186 shares of class A common stock,

•

hardware.

Office—301

West

3rd

St.,

1,700,000 shares are to be offered publicly, and
remaining 99,1>86 shares have been; subscribed for
in consideration for services rendered in organizing the
the

an incentive to management. The company
agreed to issue to the organizers 200,000 shares of
class B common stock; and 100.000 class B shares have
been set aside for issuance to keep personnel other than
company as

has

Price—To public, $3

applied to

—To be

pay

interest due

share. Proceeds
properties and to

both

per
on

Financial

July 22 filed 1,000,000
Price—At market.

investment.

York.

Finance Corp.

being allocated for lease improvements and equipment
supplies.
Office — Santurce, Puerto Rico.
Under¬

Inc.

and

shares of common capital stock

Proceeds—For

New

Sept. 11 filed 150,000 shares of common stock. Price—$3
per share.
Proceeds—For working capital, with $15,000

Industrial Income Fund,

General

purchase new properties and for working capital. Under¬
writer—None.

General

Acceptance Corp. (11/4)
Oct. 2 filed $10,000,00 of subordinated debentures due
Nov. 1, 1974, with warrants for the purchase of common
stock, to be offered in units consisting of a $1,000 de¬
benture and one common stock purchase warrant. Price
—To be supplied by amendment. Proceeds—For gen¬
eral corporate purposes.
Office — 1105 Hamilton St.,
Allentown, Pa. Underwriters—Paine, Webber Jackson &
Curtis, and Eastman Dillon, Union Securities & Co.,

of which

the organizers.

writer—Caribbean Securities Co., Inc., Avenida Condado

Office—
'

950

Broadway, Denver, Colo.

General Distributor—FIF

Management Corp., Denver, Colo.
First Financial Corp. of the West

•

(10 26-30);

28 filed 120,000 shares of capital stock (without
value), of which 100,000 shares are to be offered for
the account of the selling stockholders, and 20,000 shares
will be sold for the company's account. Price
To be
Sept.

par

ing

Proceeds—To prepay the re¬
outstand¬
term loan. Underwriter—William R. Staats & Co.,

Los

Angeles and San Francisco, Calif.

supplied

amendment.

maining balance of and accrued interest on an

Northern-Olive

First

Investment

J
Co. V

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other Northern-

companies, numbered "second" through "eighth."
Price—$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North Central Ave., Phoe¬

609,. Santurce, Puerto Rico.

nix,

Ariz. Underwriter—O'Malley Securities Co.. Phoe¬

•

'■

1 u.

First Philadelphia Corp.

ij^ii

(10/19-23)

Aug. 21 (letter of notification) 100,000 shares of class A
common stock (par 10 cents). Price—$3 per share (gross

share to brokers selling 2,500 shares or less,
and 45 cents per share to those brokers selling more than
30 cents per

2,500 shares). Proceeds—For working capital; general
corporate purposes and to develop dealer relations.
Business — A broker-dealer firm formed to underwrite
and

distribute new security issues. Office—40 Exchange

Place,

New York 5, N. Y.

phia Corp., New York,

Underwriter—First Philadel¬

N. Y

Statement effective Oct. 6.

equipment

and

facilities

Office—614

purposes.

and

Broad

other

St.,

general

corporate
Y. Under¬

Utica, N.

writer—Mortimer B. Burnside & Co., New York. Name
Change — Formerly Eastern Packing Corp. Offering —

Expected in late November.
•

Gold Medal Studios, Inc. (11/16-20)
Sept. 18 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For general cor¬

porate

purposes, including the purchase of additional
equipment, investing in properties in the enter¬
field, and the provision of funds for a down
payment on another building or buildings. Office—807
E. 175th Street, New York, N. Y.
Underwriter—Arnold
Malkan & Co., Inc., New York.

studio

tainment

Great American Publications, Inc.
Aug. 11 filed 260,000 shares of common stock (par 10
cents) of which 195,000 shares are to be publicly of¬
fered

ceeds

—

best

For

effects

basis.

working

Price—At

capital.
B.

Office

market.

—

New

Pro¬

York.

Burnside

& Co., Inc., New
Offering—Expected in the latter part of Novem¬

ber.
• Great Lakes
Bowling Corp.
Aug. 31 filed 120,000 shares of

(10/26-30)

common stock (par $1).
supplied by amendment. Proceeds—For
general corporate purposes, including the development

Price—To

bowling

lanes,

bars,

and

restaurants

various

Michigan properties. Office—6336 Woodward Ave., De¬
troit, Mich. Underwriter—Straus, Blosser & McDowell,
Chicago, 111.
•

Griffin

Steel & Supply Co.
(letter of notification) 50,000 shares of capital
stock (no par). Price — $5.50 per share. Proceeds —
For working capital.
Office—625 Williams Street, Bakersfield, Calif. Underwriter—Bailey & Co., Fresno, Calif.

poses, including the reduction of indebtedness and the
purchase and installation of machinery and equipment.
Address
P. O. Box 8169, New Orleans, La.
Under¬
writers—H. M. Byllesby & Co., Inc., Chicago, 111.; How¬
ard, Weill, Labouisse, Friedrichs and Co., New Orleans.
La., and Mason-Hagan, Inc., Richmond, Va. Offering—
—

Expected later in Oct.
General Underwriters Inc.

April 6
mon

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000

shares
and

are

to be offered for the account of the company

30,000 shares for

selling stockholder. Price—$1 per
improved

share. Proceeds—For furniture inventory and

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark. Offering—Expected any day.
•

Gertsch

Products, Inc. (10/26-30)
Sept. 24 filed 107,143 shares of capital stock (without
par value), of which 28,571 shares are being offered for
the account of the company and 78,572 shares are to be
offered for the accounts of certain selling stockholders.
Price—To

be supplied

by amendment. Proceeds

Growth Fund of
Feb.

—

For

America, Inc.
250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment.

filed

Office —1825

Connecticut

Avenue,

Washington, D. C,.
Advisory
Service
Washington, D. C.
Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.
Investment

Advisor

—

Investment

Guarantee

Mortgage, Inc.
(letter of notification) $100,000 of 10-year 6%
sinking fund debentures (in denominations of $1,000),
Aug. 14

Each debenture may be purchased

buy one share of class A
right to purchase class A
will

rants

terminate

with 100 warrants to

common

stock

common

stock by way of war¬

(par $10).

The

Dec.

31, 1969. Price—90% without
investment purposes.
Offioe—
Failing Bldg., Portland 4, Ore. Underwriter—None.

warrants.. Proceeds—For

725

Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below.
• Guerdon
Industries, Inc. (10/20)
Aug. 21 filed 400,000 shares of class A common stock (no
par). Price—To be supplied by amendment. Proceeds—
To reduce bank indebtedness by $3,500,000, and to pay
off $2,500,000 notes. Office—3782 South Van Dyke Road*.

Marlett, Mich. Underwriter—Blair & Co., Inc., New York.
Harnischfeger Corp.
Aug. 28 filed 200,000 shares of

stock (par $10).
price of outstanding
Exchange at the time of
the offering.
Proceeds — In part to repay outstanding
unsecured short-term bank loans, expected to approxi¬
mate $4,000,000, with the balance to be used for general
corporate purposes.
Office — 4400 W. National Ave.,
Milwaukee, Wis. Underwriter—The First Boston Corp.,
New York.
Offering—Indefinitely postponed due to
Price—To be related

General Flooring Co., Inc.
Sept.-14 filed $1,500,000 of 6^% debentures, due Oct.
1, 1969, and 270,000 shares of common stock, to be of¬
fered in units of $100 principal amount of debentures
and 18 shares of common stock. Price—To be supplied
by amendment.
Proceeds—For general corporate pur¬

Olive

nix.

chasable upon exercise of the warrants.
Price—$1.25 per
share. Proceeds—For repayment of
debt; purchase of

cents).

door

garage

Gateway Airlines, Inc.,
Aug. 31 filed 400,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For general
corporate purposes, including the purchase of airplanes,
spare parts, and equipment, the retirement of debt, and
the increase of working capital. Office — MacArthur
Field, Islip, L. I., N. Y. Underwriter—Dunne & Co., New
York. Offering—Expected any day.

such

Sept. 22

Frantz

•

6,000 shares of nondividend-bearing com¬
stock and $200,000 of non-dividend-bearing-fifteen
filed

Oct.

Medal

Packing Corp.
June 18 filed 572,500 shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬

(par $1).

investment.

Sterling, 111. Underwriter—Blair & Co., Inc., New York.

Inc.

^ Farmbest,

Gold

type

—

Co., Inc., all of New York.

effective

Stock

market.

Md. Underwriters—Auchincloss, Parker & Redpath,
Washington, D. C., and Kidder, Peabody & Co., New

York.

Manufacturing Co.
(10/26-30)
Sept. 11 filed 190,953 outstanding shares of common
stock, (par $1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Business—Company
is engaged in the design, development, production and
distribution of builders' hardware, primarily overhead

•

including plant expansion, improvement and
equipment.
Office — 744 Broad St., Newark, N. J.
Underwriters
Netherlands Securities Co., Inc. (han¬
dling the books) and Herbert Young & Co., Inc.

Office—

C. Bradford &

purposes,

Morris Cohon & Co.;

(par $1).

investment.

Fund, Inc.,
100,000 shares of common stock

filed

Proceeds—For general corporate purposes. Office—Land-

York.

stock

St., Nashville, Tenn. Investment Adviser—J.
Distributor—Capital

Planning Services, Inc. Statement

None.
•

common

Proceeds—For

market.

Union

Fund, Inc.

100,000 shares of

• Giant Food Properties, Inc.
13 filed 200,000 shares of class A common stock
(non-voting). Price — To be supplied by amendment.

Oct.

Underwriter"—Mortimer

C. Bradford & Co., Nashville, Tenp.

Underwriter—

W.,: Washington, D.

18 filed

June

16th

Bank, Purcellville, Loudon
sum of $772,000 from

lington, Va. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C.-<
* :

'Y: V

National

County, Va., for the approximate
J. R.

Co.-&

Gleich

New York.

the-V,common capital stock of subsidiary banks and,

purchase

•: * Enflo
Corp. '
/•/..*
Sept. 30 filed 125,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—For general cor¬
porate purposes. Office—Maple Shade, N. J. Underwrit¬

ers— D.v

indebtedness, make additional investments

repay

working capital. Underwriter—Schwabacher & Co., San
Francisco and Los Angeles, Calif.

over,
N

including the repayment of out¬
standing indebtedness, the completion of construction, v
and the purchase of additional
equipment. Office—1501
72nd St., North, St.
Petersburg, Fla. Underwriter—Laird
& Co.,. Corp.,
Wilmington, Del.- Offering — Indefinitely
postponed. \
■•///:
>
v,; purposes,

market

the American

common

the market
Stock

conditions.

Hawaiian

Telephone Co.
Sept. 11 filed 287,321 shares of common stock (par $10),
of which 261,201 shares were offered to holders of out¬
standing stock of record Sept. 18, 1959, on the basis of
one
new
share for each seven shares then held, and
26,120 shares are being offered for subscription by em¬
ployees.
Any shares not subscribed for by employees
will

be offered to stockholders under an oversubscrip¬
privilege; rights will expire on Oct. 23. Price —
$17.75 per share.
Proceeds—To be applied toward the
cost of the company's construction program, the pay¬
ment of $5,300,000 of bank loans obtained for such pro¬
gram, and the refunding of debentures and preferred

tion

shares.

Office—1130 Alakea Street.

Underwriter—None.

Heliogen
Oct.

22,

Products, Inc.
1958 (letter of notification)

shares of
Proceeds—
For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way. New York 4, N. Y.
Continued on page 40
common

stock (par $1).

Price—$5

per

28,800

share.

The Commercial and Financial Chronicle

(16161

Thursday, October 15, 1959

——l.«

for

capital in order to enable company to exercise options
motels and/or parcels of land. Office—Martinsville,
Va. Underwriter
G. Everett Parks & Co., Inc., 52
Broadway, New York City. Offering—Expected beiore

«Continued from page 39

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of common stock.
Price—At par (SI per share).
Proceeds—

—

the

Office—702
Underwriter
Hensley Co., Inc., 4444 California Avenue.

For development oi oil and gas properties.
American Bank Building, Portland 5, Ore.
Earle

—D.

Seattle, Wash.

Instrument Co.

Price—To\ be supplied by
a

new

■

hotel

—None.

.■

International

■■;•'/.;t //

/•/"•'w-'

Washington, D.

Bank,

Dec- 29 filed $5,000,000 of notes

—100%

Proceeds

amount.

Tuna

International

Interstate

(10 28)

Corp.

Wa»i>

Fire

Casualty Co.

(10/27)

$30,000,000 of subordinated sinking fund
-debentures due 1984, with warrants for purchase of 360,-

Sept. 29 filed

expansion. Office —501

supplied by amendment.
Proceeds
For capital expenditures, Office — Chicago,
111. Underwriters—Carl M. Loeb, Rhoades & Co., and

000 common shares. Price—To be

Ill/

Underwriter—White,

Livingston Bldg., Bloomington,
Weld & Co., Inc., New York.

—

Investment Trust for the Federal Bar

Aug.

Pierce, Fenner & Smith Inc.

Merrill Lynch,

Hycon Manufacturing Co.
Aug. 28 filed 126,316 shares of common stock, which
were issued to Avco Corp, on Dec. 8, 1953, at $2,375 per

times, the. stock
Pasadena,
Cailf. Underwriters—The offering will be made through

over-the-counter market at the time, or

Office—1030 South Arroyo Parkway,

registered brokers and dealers who are NASD members.
I C

Inc.

June 29 filed

600,000 shares of common stock

(par $1)

Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and enfranchising of bottlers, the local and national pro¬
motion and
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver
Price—$2.50 per share.

Colo.

Ideal

July

Cement

filed

500

Beneficial

Trust

Certificates

the

St., N. W., Washington. D. C., and construct an office
building thereon.
Office—Washington, DYC.
Under-""
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D. C., and Swesnick & Blum Securities
Corp.
.

Irando Oil & Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬

quisition

of other

properties;

Office—1950

also

for other

corporate

Broad

St., Regina, Sask.,
Underwriter
Laird & Rumball, Regina, Sask.,
• Israel American Oil
Corp.
purposes.

—

Oct.

filed

13,550,000 shares of

common

stock

Can
Can

(par

cents), to be offered to holders of the Israeli Joint Ven¬
ture

in exchange for

ture.

25%

interest in such

ven¬

Office—Cody, Wyo. Underwriter—Bear, Stearns &

Co., New York.

Co.

675,000

capital

stock.

These

•

Israel

Development Corp.
Sept. 22 filed 200,000 shares of

owned

(with

Electric

Lenkurt

Calif.

Co.

Office

•

—

1105

County

Road,

San

;.v

Carlos,

Underwriter—None....

;

•

Life Insurance Co. of Florida

Sept. 28 filed 203,476 shares of common stock (par $1).
Price—$4.50 per share. Proceeds—For expansion. Office
—2546 S. W. 8th St., Miami, Fla. Underwriter—Plymouth
Share Corp., Miami.

Offering—Expected in No¬

vember.

Lindberg Steel Treating Co., Inc. :
12 filed all of their 85,035 outstanding

Oct.

shares- of
supplied by amendment.
selling stockholders. Office — Melrose
Park, 111.
Underwriter — Cruttenden, Podesta & Co.,
Chicago, 111.
A

class

Price—To

stock.

Proceeds

Trust. Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H

chares, and which will now be publicly offered by AvCo.
Price—To be related to the prices prevailing in the
is sold.

Bldg.

two

Aug. 31 filed 10,000 outstanding shares of class B com¬
mon stock. Price—$83.31 per share. Proceeds—To
selling

Bond

17 filed 85,000 shares of common stock (par $5).
Price—To be supplied by amendment.
Proceeds—For
Sept.

each

for

stockholder.

;

notification)

(letter of

15-day
standby). Price — $4 per share to. stockholders; $5; to';
public. Proceeds—For inventory and for working capi- ;
tal.
Office—Jacksonville, Fla. / Underwriter— Plymouth
Bond & Share Corp., Miami, Fla.» v;
;* * >
" t-;
:
'

For working

—

175,000 shares of class
A common stock (par 50 cents).
Price — $1 per shan
Proceeds—For equipment and working capital.
Offic»
—Pascagoula, Miss. Underwriter—Gates, Carter & Co
Gulf port, Miss.

Aug.

Sept. 8 (letter ol notification) 20,888 shares of common
(par $10) being offered to stockholders of record
Sept. 19, 1959 on the basis of one new share for each 9*4
shares then held; rights to expire Oct. 15.
Price — $14
per share. Proceeds—To be used to curtail short-term
bank loans. Office—127 E. Church St., Martinsville, Va.
Underwriter—None.
V>';.,
:• //'*:" K
■,/

new

(series B, $500,000, two h

capital. Underwriter—Johnston, Lemon & Co.,
Ington, D. C. Offering—Indefinitely postponed.

laboratories, and for working capital. Office—Cleveland,
Ohio. Underwriter—Hayden, Miller & Co., Cleveland,
,

of principal

Co.

• Lertahan Aluminum Window Corp.
(10/19-23)
July 28 filed 157,4.94 shares of common stock (par 50c),
to be offered initially to stockholders on the basis of cine

Kalapaki Bay, on;the Island of Kauai. Office—305
Royal Hawaiian Avenue, Honolulu, Hawaii. Underwriter

unit; series C, $1,000,000, four-year 4% pe
unit; and series D, $3,500,000, 6-year, 5% per unit). Pru*

For the stock; to be supplied by amendment. Proceeds—
For retirement of bank loans, for the construction of

Hilton Hotels Corp.

new

one

10, 1959;

year, 3% per

Sept. 9 filed $500,000 of convertible subordinated deben¬
tures, due 1974, together with 100,000, shares of class A
common capital stock, of which 90,000 shares are to be
publicly offered, and 10,000 shares offered to employees.
iAny unsubscribed shares will be offered to public.)
Price—For the debentures: at 100% of principal amount.

•

Oct.

existing liabilities; for additional equipment; an* *
for working capital.
Office—East Tenth Street, P. O
•: Box
68, Great Bend, Kan. Underwriter—Birkenmaye*
& Co., Denver, Colo.

Ohio.

the basis of

Proceeds—For construction of

amendment.

pay

Hickok Electrical

four shares held of record

rights to expire on Nov. 30.

stock.

mon

Underwriter—Smith,

purposes.

stock

be offered first to stockholders
share for each

(letter of notification) "285,000 shares of com¬
Price—At par ($1 per share). Proceeds—Tt

March 11

of November.

Resorts, Ltd.
Sept. 10 filed 99,000 shares of common stock (par $3) to

Inc.

corporate

Lee Telephone

Inter-Island

;

•

Bros. Truck Co.,

Hickerson

end

general

Barney & Co., New York.

—

Oils Ltd.

May 1J, filed 390,000 shares of common stock. Price-r-60
cents per share.
Proceeds —For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Block, Saska¬
toon,

Saskatchewan, Canada.' Underwriter — Cumber¬
Ltd., Regina, Saskatchewan, Canada.

land
•

Securities

Madison Gas &

Electric Co.

Sept. 15 filed 82,000 shares of common stock (par $16) be¬
ing offered for subscription by the holders of outstanding
stock

common

five shares held

the

basis

one

new

for

each

Oct. 5. Price—$47 per share. Proceeds

—For general corporate purposes.
Underwriter—None.

Office—Madison, Wis. 4

Magnuson Properties, Inc.
29 filed 500,000 shares of class A common stock
on Aug. 24 to 150,000 shares of Ql/z%
cumu¬
lative convertible preferred stock, par $10), and 150,000

June

(amended

of class A common stock, par $1, with common
stock purchase warrants. Each share of class A common

stock carries
to

exchange
2, 1959. No extension,

common stock (par $25).
share, payable in cash or State of Israel
Independence Issue or Development Issue bonds.
Pro¬
ceeds—For general corporate purposes. Office—17 E. 71st
Street, New York City. Underwriter—None.

however, will be made beyond Dec. 1, 1959, unless 80%.
or more of the outstanding shares of the common stock

it Jetronic Industries, Inc.
Sept. 23 (letter of notification) 5,460 shares of common

stock (par

warrant entitling the registered holder
share of such common stock at an initial

one

being exchanged for all (but not less than
of the common stock (par $1) of the Volunteer
are

80%)

Portland Cement Co., in the ratio of 3% shares of Ideal
stock for each share of Volunteer

period

was

to have expired Oct.

Volunteer

80%

are

tendered

of such

or more

Denver

may

National

"Denver, Colo.

before

said

stock has been

common

Ideal, at its discretion,
—500

The

stock.

date.

tendered

continue its exchange. Office

Bank

Building, 821

17th

Street,

of which,

25,000

Pa.

the Amer¬

selling stock¬

Philadelphia,

Underwriter—None.

Jocelyn-Varn 1960 Oil Associates

Inc.

10 cents). Price—At the market

ican Stock Exchange. Proceeds—To go to
holders.
Office—Main & Cotton Streets,

Statement effective Sept. 1.

^ Indiana Gear Works,

Sept. 28 filed 100 units of oil and gas exploration agree¬

Oct. 8 filed 100,000 shares of common stock (stated value

$2)

Price—$27.50 per

are

ottered

em¬

ployees, and the remaining 75,000 shares are to be of¬
fered to the public. The public
offering will include any

ments.

Price—$20,000 per unit. Proceeds—For locating,
developing, ar il 'administering oil and gas producing
properties.
Office—310 KFH Building, Wichita, Kan.

Underwriter—None.

chares
fx?

not subscribed for by the employees.
Price—To
supplied bv amendment. Proceeds—To partially retire

bank

loans,

which were used for acquisition of fixed
working capital. Office—1458 E. 19th St., In¬
dianapolis, Inch Underwriter—City Securities Corp., In¬
dianapolis.
Offering—Expected in five to six weeks.
assets and

convertible

debentures

subordinated

denomination).

debentures

Price—100% of principal amount.

ceeds—For working capital.
nue, Portland
land, Ore.

$200,000 subordinated
($1,000 denomination) and

convertible

4, Ore.

Kayser-Roth Corp.

(11/9)
Oct. 5 filed 375.000 shares of outstanding common stock
(par SI). Price—To be related to the market price on
the N. Y. S. E. at the time the offering begins. Proceeds
—To Harrison Factors
Corp., the selling stockholder.
Office—425 Filth Ave., New York.

Industrial Leasing Corp.
June 1
(letter of notification)

$50,000

•

($500
Pro¬

Office—522 S. W. 5th Ave¬

Underwriter—May & Co., Port¬

hill, Noyes & Co., New

Underwriter—Hemp¬

York.

purchase

share. Price—For preferred, at par; and
per share. Proceeds—$291,099 is to

per

class

$10.10

be expended

during the period ending Aug. 31, 1960 for
mortgage payments and releases; $465,000 will be paid
notes acquired by members oi the
Magnuson family
in the transfers of subsidiaries and
properties to the

$106,000 will be used to close certain options
covering lands in the MelbourneCape Canaveral area; the balance will be added to the
general funds of the company and used for general
corporate purposes. Office—20 S. E. 3rd Ave., Miami,

company;

and purchase contracts

Fla.

Underwriter—Blair & Co. Inc., New York. Offering

—Expected this Fall.
• Waul Bros., Inc.

(10/19-23)

Sept. 22 (letter of notification) 66,000 shares of common ;
(par 25 cents). Price—to be supplied by amendj
ment.
Proceed;—For general corporate purposes. Office
—Millville, N. J. Underwriter—Kidder, Peabody & Co.,
stock

New
•

York.

Mayfair Markets

Oct.

filed 301,177 shares of common stock
(par $1), to
to holders of such stock on the basis of one
share for each five shares then held.
Price —$10

offered

new

per

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares ol common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,000 shares.
Price—Of 30,717 shares, $115 each; and oi
51,000 shares, $116 each.
Proceeds—To selling stock¬
holders.
Office—Anchorage, Ky. Underwriter—None.

of $11
A,

price

for

one

share.

Proceeds—Fcr

including expansion

and

Bandini

Los

Boulevard,

None.

general

corporate

working capital.

purposes.

Credit

Angeles, Calif. Underwriter—
'

Corp.

(letter of notification) 75,000 shares of common
(par value 10 cents) and $100,000 of 6% five-year
convertible debentures in denominations of
$100, $500
and $1,000 each.
Price—For the common stock, $2 per
Sept. 1
stock

Inland

Western Loan & Finance
Corp.
Sept. 24 filed $1,000,000 of 6% capital debentures. Price
—To
be supplied by amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life

Insurance Co.; to furnish

operating capital for subsidi¬

aries; and to establish new subsidiaries or branches of
already existing ones. Office—10202 North 19th Ave.,
Fhoenix, Ariz. Underwriter—The underwriters, if any,
will be named by amendment.
•
Insui-Cup Corp. of America (10/20)
Sept. 18 (letter of notification) 300,000 shares of com¬
mon
stock (par one cent).
Price—To be supplied by

amendment.

Proceeds—For general corporate

Office—1938

Park

purposes.

Avenue, New York City, N. Y. Un¬
12 E. 41st Street, New York.

derwriter—The James Co.,

filed

85,000

common

stock.

Price—$4
share. Proceeds—For general corporate purposes, in¬
cluding the redemption of outstanding preferred stock
and new plant equipment.
Office—Westbury, L. I., N. Y.

per

Underwriter—DiRoma, Alexik & Co., Springfield, Mass.
Intercontinental
Oct.

Motei6,

Ltd.

7 filed 133,000 shares of common stock
(par 10c).
Price—$3 per share. Proceeds—To be added to working

(W. S.)

1960 Co.

Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts oi
$25,000 or more. Proceeds—Acquisition of undeveloped

share.
Rialto

west

properties. Office—2306 Bank of the South¬
Bldg., Houston Texas. Underwriter—None.

Kittanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common stock, to be of¬
fered by subscription to holders of outstanding common
stock on the basis of approximately 0.212 new shares for
each share held. Price—$25 per share.Proceeds—In
part to repay a bank loan in the amount of $450,000 rep¬
resenting funds acquired for general modernization, im¬
provement, and expansion. Underwriter—None.
Knox Glass,

Inc.

—

Proceeds
For working capital.
Office — 940
Bldg., Kansas City, Mo. Underwriter—McDonald
Co., Kansas City, Mo.
—

•

Metallurgical Processing Corp., Westbury, N. Y.

Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—To
retire

metals

debts;
and

facilities and

acquire

expand

new

new equipment for processing
its overall capacity; to move its

equipment into

a new

Expected in

(10/21)

building and for

further development and expansion. Underwriter—Neth¬
erlands Securities Co., Inc., New
York, N. Y. Offering—

•

Sept. 23 filed 200,000 shares of capital stock (par $6.25).
Price
To be supplied by amendment. Proceeds — To¬
gether with funds to be received 'from a $2,000,000 bank
loan and a $6,000,000 long-term loan from an institutional
investor, will be applied in part to repayment of all of the
company's outstanding indebtedness, and the balance
of the proceeds will
be used to provide machinery,
equipment and working capital fcr a proposed new
plant in the southeastern part of the United States, and

Evans &

oil and gas

•

Integrand Corp.
Oct.

Kilroy

.June 8 filed $3,500,000 of Participating Interests under

Office—4383

Mercantile

couple of weeks.'

Metropolitan Telecommunications Corp.
(10/26-30)

Sept. 28 (letter of notification) 99,933 shares of common H
(par 10 cents). Price—S3 per share. Proceeds— :,i
For working capital.
Office—964 Dean St., Brooklyn,

stock

Y. Underwriter—Lee Co., New
York, N. Y. Offering
—Expected in late October.

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben- j
tures due July 1, 1969 together with
250,000 shares of

Volume 190

common

Number

stock

5890

The Commercial and Financial Chronicle

R. F.

(par 10 cents)

to be offered in units of
and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the
company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬

$10,000 principal

ing^

amount

•

National

Co., Inc. (10/21-22)
150,000 shares are to be offered for the account
and 50,000 shares for the account of the

of which

Assets Investment

ing

the

retirement

vertible

bank

loan

the

amount

incurred to retire certain 5%

was

debentures.

Office

of-

con-„

61 Sherman St., Maiden,
White, Weld & Co., New York.
offering has been postponed due to market con¬

Mass.

Underwriter

This

•;

National

—

ditions.

■

Industrial

—

edness for construction of plant and for other
liabilities,
the remainder will be used for
operating capital.

and

Office

—

Laird

Minerals, Inc.
$1,875,000 of'Participations

Regina, Saskatchewan, Canada. Underwriter—
Rumball Ltd., Regina, Saskatchewan, Canada.

National

Key Co., Cleveland, Ohio (10/19-23)
Sept. 17 filed 200,000 shares of class A common stock
(par 50 cents) of which 75,000 shares are to be sold for
the account of the issuing cpmpany and 125,000 shares

in Oil and
Gas Fund. Pi ice—150 units will be offered at $10,000
each, and 150 units will be offered at $2,500 each. Pro¬
ceeds—To facilitate the completion of oil and gas wells.
Office
500
Mid-America Bank Building, Oklahoma

for the account of selling stockholders. Price—To be sup¬

—

plied by

amendment.

Proceeds—For

Midamco, Inc., its subsidiary.

general corporate
purposes, including the purchase from Grant Ave. Realty
Corp., at seller's cost, about 6.25 acres of Cleveland land,
on
which a building is being constructed which will

★ Mid-Eastern Electronics Inc.

house the

Oct.

land

"best

Underwriters—The
efforts"* basis

offering will be made
issuing company and

by the

8'(letter of notification) 60,000 shares of common
stock (par 10 cents).
Price—$2.50 per share. Proceeds
•—For the purchase

National Life &

equipment; salaries of additional engineers; expansion
promotion, public relations and advertising and

March

of sales

retire

short-term

St., Springfield, N. J.

if Mills Corp.
Oct.

Office—32

loans.

bank

one

■

Montreal

(City of) Canada (10/19)
Sept. 25 filed $20,000,000 of sinking fund debentures for
public works, due 1979.
Price — To be supplied by
amendment.
Proceeds
To repay interim borrowings
incurred by the City for various public works projects.
Underwriter—To be determined by competitive bidding.
Probable bidders: Smith, Barney & Co. and Dominion
Securities Corp. (jointly); Shields & Co., Halsey, Stuart
& Co. Inc. and Salomon Brothers & Hutzler (jointly);
Lehman Brothers, White, Weld & Co., Eastman Dillon,
Union Securities & Co. and Blyth &> Co., Inc. (jointly).
Bids—Expected to be received up to 12:30 p.m. (EDT)

filed

offered

Casualty Insurance Co.

250,000 shares of common capital stock
holders of certain of company's life

policies issued

on or prior to Dec. 31, 1955,
employees. Price—$4.44 per share. Pro¬
ceeds— To increase capital and surplus.
Office—2300

and

cent).

insurance

Underwriter—None.

35,000 shares of common
Price—$1 per share. Proceeds—
For expansion, purchase of new equipment and working
capital. Address—Marlow, N. H. Underwriter—None.
(par

Commerce

(letter of notification)

stock

issuing company's executive offices and Cleve¬
operations. Underwriter—C. E. Unterberg, Towbm

Co., New York.

and construction of machinery and

to certain

North

Central

Avenue, Phoenix, Ariz.

Underwriter—

None.

National Munsey Co.
Sept. 28 filed 293 limited partnership interests. Price—
$5,000 per unit. Proceeds—To purchase land and erect
buildings thereon. Office—535 Fifth Avenue, New York
City. Underwriter—Tenney Securities Corp.

—

Oct. 19,

in Montreal.

Mortgage Guaranty Insurance Corp.
Sept. 23 filed 40,000 shares of common stock (par $10) in
a
joint registration with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage
common and one share of Guaranty common. Proceeds—
Mortgage will use its proceeds fo rexpansion; Guaranty
will use its proceeds for additional working capital.
Office—(of both firms) 606 West Wisconsin Ave., Mil¬
waukee, Wis.

if Mortgages, Inc.
(letter of notification)

5-year

subordinated debentures to be offered in denominations

Price—At face amount. Proceeds—For working

Office—211 Mining Exchange
Springs, Colo. Underwriter—None.

Bldg.,

capital.

Colorado

if Mutual Credit Corp.
(letter of notification) $300,000 of 6Vz% convert¬
ible subordinated debentures, series A, due Oct. 1, 196.9.
Debentures are convertible at any time through Oct. 1,
1968 into class A non-voting common stock (par $5) at
the

rate

100

the

—For

stock

for

each

$500

Price—At face amount. Proceeds

funds

general

such

the

company.

Office—c/o

Un¬
Raymond F. Wentworth, 6 Milk St., Dover, N. H.
derwriter—Eastern Investment Corp., Manchester, N. H.
N. A.

Building Associates

supply the cash and incidental expenses necessary
purchase of the National Association Building,
25 West 43rd St., New York.
Office—60 East 42nd St.,
New York. Underwriter—None.

—To

•

the

Narda Microwave Corp.

(10/19-23)

filed 50,000 shares of common stock (par 10
and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000
shares of common stock reserved for issuance to key
June

cents)

employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New
York.
National Beverages, Inc.
Sept, 25 (letter of notification) 80,000 shares of common
stock" (par $1). Price—$2.50 per share. Proceeds—For
building on company property, purchase of new vending
machines and additional working capital.
Office—1030

Street, Salt Lake City, Utah.

writer—Peters, Writer & Christensen, Denver,
National Citrus

Under¬

Colo.

Corp.

(letter of notification) 150,000 shares of com¬
mon stock.
Price—At par ($2 per share).
Proceeds—
For new equipment, inventory and working capital. Ad¬
O.

Box

1658, Lakeland, Fla.

Co.

(Pittsburgh,

200,000 shares of capital

stock

(par $5)
record

to be offered for subscription by stockholders of
Oct.

the basis of one additional share of
capital stock for each three shares then held; rights to
expire on Nov. 16. Price—To be supplied by amendment.
Proceeds—To increase capital and surplus. Underwriter
—The First Boston Corp., New York.
16,

1959,

Nationwide Auto Leasing System, Inc.
July 16 (letter of notification) 142,500 shares of common
stock

(par 10 cents). Price—$2 per share. Proceeds—
financing of leased cars and for general corporate
purposes. Underwriter—Investment Bankers of America,
For

Inc., Washington, D. C.
North Carolina Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, to
be offered for subscription by holders of outstanding
stock in the ratio of two

Price—$2

edness

per

new

share.

Proceeds—To reduce indebt¬

Underwriter—One or

Office—Matthews, N. C.

security

Underwriter—

Oil

Recovery Corp. (10/22) .
15 filed $550,000 of 6% convertible subordinated,
debentures, due 1974, and 5,500 shares of common stock,
to be offered in units of $500 of debentures and 5 shares
stock.

Price—To

be supplied by amendment. Pro¬
general corporate purposes, including the
acquisition and development of properties for secondary

ceeds

—-

For

oil recovery purposes. Office—405

York

Lexington Ave., New
Underwriter—Lehman Brothers, New York.

City.

Palestine Economic Corp..
Sept. 28 filed 124,000 shares of common stock. Price—
$25 per share, payable in cash, State of Israel bonds at
par, or both. Proceeds—For general corporate purposes
bearing on the further development of industry and
agriculture in Israel. Office—18 East 41st Street, New
York.

dealers

will

offered

any

Underwriter—None.

Corp.
Aug. 7 filed 2,612,480 shares of common capital stock to
be issued pursuant to options held by Marine
Drilling,
Inc. Latter company will, in turn, offer its stockholders
rights to purchase two shares of Pan-Alaska common, at
20 cents a share, for each share of Marine
Drilling stock.
Marine Drilling also plans to sell 250,000 shares of the
680,000 shares of Pan-Alaska it now owns. Underwriter
—Any stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,
Texas and Clark, Landstreet & Kirkpatrick, Inc., Nash¬
ville, Tenn., at a price of 20 cents a share.
Pantasote Co..

—For

construction, equipping, and placing in operation

of a new plant, with the balance to be used for general
corporate purposes. Office—26 Jefferson St., Passaic, N. J.

Underwriter

—

Blair &

Co., Inc., New York. Offering—

Participating Annuity Life Insurance Co.
variable annuity policies. Pro¬
Office
Hathcock Building;
Fayetteville, Ark. Underwriter—None.

June 4 filed $2,000,000 of
ceeds — For investment.

—

Pathe News, Inc.
Sept. 17 filed 400,000 shares of common stock (par 10
cents) with warrants to purchase an additional 100,006
common
shares at $3.25 per share. Price — $3.75 per
share, with warrants. Proceeds—For general corporate
purposes, including Athe addition of working capital, the

reduction of indebtedness, and the provision
of the
$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York.
Office—245 W. 55th St., New York. Underwriter—Chauncey, Walden, Harris & Freed, Inc., New York.
—Expected in about 30 days.

Packman Plan Fund, Inc., Pasadena,

May 19 filed 20,000 shares of
Price—At

market.

common

Proceeds—For

writer—Investors Investments

Offering

Calif.
(par $1).

stock

investment.

Under¬

Corp., Pasadena, Calif.

Petroleum

(10/27)
Oct. 9 filed $25,000,000 of sinking fund debentures, due
Nov. 1, 1979. Price — To be supplied by amendment.
Proceeds
For general corporate purposes, including
costs of construction of the issuing company and its sub¬
sidiaries. Office—2223 Dodge St., Omaha, Neb. Under¬
writer—Blyth & Co., Inc., New York.

Projects
$1,500,000 of participations in oil and gas
exploratory fund. Price — The minimum participation
will cost $10,000. Office—Madison, N. J. UnderwriterMineral Projects Co., Ltd.
Oct.

filed

—

Northern Properties, Inc.
Sept. 8 filed 150,000 shares of common stock (par $2.50).
Price—$5 per share. Proceeds—To acquire and develop
various properties in New York State. Office—Hartsdale,

ing—Expected in late October

Co., Inc., New York. Offer¬
or early November.

ordinated

Industries, Inc.
(letter of notification)
debentures

due

Oct.

$250,000
1,

1969

with

sub¬

common

stock

purchase warrants entitling the holders of the
warrants to purchase 25,000 shares of common stock
(par
10 cents).
Price—$1,020 per $1,000 debenture
with warrant for
attached.

purchase of 100 shares of common stock
capital. Office—Min¬

Proceeds—For working

neapolis, Minn. Underwriter—Woodard-Elwood & Co.,
Minneapolis, Minn.
•

Oak

Valley Sewerage Co.
(letter of notification) $145,000 of 5Vz% first
mortgage bonds series of 1958. Price—-At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost of
construction of sewerage collection and disposal system
June

the costs and expenses of financing. Office
—330 Main St., Mantua. N. J.
Underwriter—Bache &
Co.,
•

pay

Philadelphia,

Pa.

Offering—Expected

October.

Oak Valley Water Co.

June

(letter of notification)

$125,000 of 5V2%

first

mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost of
construction of the water supply and distribution sys¬

and to pay the costs and
expenses of financing.
Office—330 Main St., Mantua,
N
J.
Underwriter
Bache & Co., Philadelphia, Pa.
Offering—Expected in October.
the company's supply of water;

—

Photo-Marker Corp.
Sept. 14 (letter of notification) 50,000 shares of common,
stock (par 50 cents).
Price—$5 per share. Proceeds—
For acquisition of a coating plant; establishment of eight
new branch offices; moving to larger quarters and fur¬
ther research. Office—153 W. 36th St., New York 18, N. Y.
Underwriters—Marron, Edens, Sloss & Co., Inc., New

York, N. Y., and First Albany Corp., Albany, N. Y. Of¬
fering—Expected shortly.
-

Pik-Quik,

Nu-Line

Aug. 28 filed $2,700,000 of 6% subordinated sinking fund
debentures, due Oct. 15, 1974 (with warrants attached en¬
titling the holder to purchase 50 shares of common stock
of the issuing company for each $500 of debentures).
Price—100% and accrued interest from Oct. 15. Proceeds

shares not

subscribed for at $2 per share.

Sept.

Pan-Alaska

shares for each five shares

with the balance, if any, to be used as working

capital.
more

Temporarily postponed.

tem; to pay the cost of a new 12 inch well to increase

April 20

dress—P.

24 filed

and to

South Sixth West

Insurance

N. Y. Underwriter—Alkow &

Sept. 4 filed $2,120,000 of Participations in Partnership
Interests in Associates. Price—$10,000 per unit. Proceeds
to

Fire

if Northern Natural Gas Co.

Oct. 6

debentures converted.

Sept.

Union

(10/16)

Pa.)

held.

$130,000 of 7%

Sept. 30
of $100.

National

•

Trade

Sept.

Ltd.

Minerals

Aug. 4 filed 150,000 shares of common stock (no par).
Price
$1 per share. Proceeds — To retire indebt¬

Mid-America

Office—513 Interna¬
Mart, New Orleans, La.
Underwriter —
Co., Inc., New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept.
2, to deter¬
mine whether a stop order should be issued
suspending
the offering.

tional

$675,000, which

Mid-America Minerals, Inc.
June 22 filed
$921,852 of Working Interests and Over¬
riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest
being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and
gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla. Underwriter—None.

loans and for investment purposes.

present holder thereof. Price—To be supplied by amend¬
ment. Proceeds—For general corporate
purposes, includ¬

Gity, Okla.

Oil, Gas & Minerals, Inc.
April 2 filed 260,uuu shares of common stock (par 35>
Price—$2 per share. Proceeds—To retire bank

cents.

of the company

Office—4061 Transport St., Palo Alto, Calif. Underwriter
—None. Financial Adviser—Hill, Richards & Co., Inc.,
Los
Angeles, Calif.

Sept. .11 .filed

Campeau Co., Inc., Detroit, Mieh. Statement to be

amended.

of debentures

remainder for working capital.

and the

expenses,

(1617), 41

Inc.

Sept. 17 filed 500,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—To place in operation
80 food

cated

markets

near

West

in Florida, three of which
Palm Beach. These three

will be lo¬
have

been

International

Properties, Inc., a newlyformed Minneapolis real estate firm, for 15 years, with
options to renew. Office — Baker Bldg., Minneapolis,
Minn. Underwriter
Craig-Hallum, Inc., Minneapolis,
from

leased

—

Minn.

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1),
of which 55,000 shares are to be offered first to stock¬
holders of record Aug. 31, 1959, and 45,000 shares (mini¬
mum) aie to be offered to the public, which will also

unsubscribed for by said stockholders.
Price—$5 per share. Proceeds — For general corporate
purposes, possibly including the enabling of the issuing
company to make application for licenses to conduct its
insurance business in States "other than Illinois, the soleState in which it is presently licensed. Office—222 W.
offered any shares

St., Chicago, 111. Underwriter—None.

Adams
•

Plastic Applicators,

Oct. 1

ing

fund

accrued

general

Inc.

convertible subordinated sink¬
due 1969. Price—At 100% plus
interest since Oct. 1, 1959.
Proceeds
- For
corporate purposes. Office—7020 Katy Road,
Continued on page 42

filed $1,000,000 of

debentures,

(1618)

The Commercial and Financial Chronicle

the

Continued from page 41

accounts

$3.50

Underwriter—A. G. Edwards &

Houston, Texas.
St. Louis, Mo.

Sons,

shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For expansion. Office—Alliance, Ohio. Underwriter—
Pearson, Murphy & Co., Inc.; New York.
Producers

March

Fire & Casualty Co., Mesa, Ariz.
filed 400,000 shares of common stock to

■

be
offered for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
31

agents and brokers of Producers Fire

Price—$5

Proceeds—For

share.

per

& Casualty Co.
working capital.

Underwriter—None.
Professional

Finance

Co.

To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., and Lehman Bros, (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc.; Stone &
Webster Securities Corp.; The First Boston Corp. and
Smith, Barney & Co. (jointly). Bids—Expected to be
received uo to noon (EST) on Oct. 28, at 90 Broad St.,
19th Floor, New York, N. Yr ^
™
- —
z
Rad-O-Lite, Inc.

July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds —For general corpo¬
rate purposes. Office—1202 Myrtle St., Erie, Pa. Under¬
writer—John G. Cravin & Co.,^ New York.
Offering—•
—

Expected in October.
Radiant Lamp & Electronics Corp.
Sept. 4 filed $250,000 of 6% ten-year subordinated con¬

Price

—

pur¬

Republic Resources & Development Corp.
1,250,000 unit shares of capital stock (par
one Philippine centavo).
Price—$2 per unit of 200 shares.
June 29 filed

Proceeds—To

used

Offering—Expected

Ritter

(P. J.)

any

day.

stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
stock (no par) to be offered to the holders of
preferred
stock

common

Brooks

Foods, Inc., at the

rate

share of Ritter preferred stock for each share of

one

preferred stock of Brooks and
stock

two

common

Ritter for each share
of common stock of
The exchange offer is being made
by Ritter in
accordance with its agreement with Brooks and certain
of its stockholders who own
an
aggregate of

Brooks.

18,805
its outstanding common stock, or approxi- "
mately 02.5% of such -stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
shares

istration statement.
Rochester Gas & Electric Corp. (10/22)
Sept. 25 filed $12,000,000 of first mortgage bonds, series
E, due 1989. Proceeds—For general corporate purposes,
including the repayment of loans incurred to finance

construction, which amounted to $10,950,000 at Sept. 21.
Underwriter—To be determined by competitive bidding.
Probable bidders: Kidder,
Peabody & Co.; White, Weld
& Co.; Shields & Co.
Bids—Expected to be received on
Oct. 22.

vertible sinking fund debentures,

Rondout Corp.
Sept. 4 filed 155,000 shares of common stock, of which
140,000 shares are to be publicly offered. Price—$3.50
per share. Proceeds—To buy the capital stock of Rond¬

Price

out

series II, due Oct. 15,
1969, and 120,000 shares of class A stock (par 10 cents).
For debentures, 100% of principal amount; for
stock, $5 per share. Proceeds—To acquire Radiant Lamp
Corp., of Newark, N. J., with the balance to be used as
—

Paper

Mills,

Inc.,

company, currently
with the balance to

and to purchase notes of said
held by Arrowsmith Paper Corp.,

Thursday, October 15, 1959

and for general corporate purposes. Office—P. O. Box
41, 450 Cooper St., Delanco, N. J. Underwriter—Albion
Securities Co., Inc., 11 Broadway, New York 4, N. Y.
Service

Life

Co.

Insurance

Aug. 25 filed 25,000 outstanding shares of common stock
(par $1). Price — $20 per share. Proceeds — To selling
stockholder. Office—400 West Vickery Blvd., Fort
Worth,:
Texas. Underwriter—Kay and Company,
Inc.,

Houston,

Texas.

;

used

for general

Servo Corp.

of America

(16/20-23)

Sept.

11 filed $1,000,000 of conv. subord. debens. due
1, 1974. Price—100% of principal amount. Proceeds—.
$300,000 for working capital; $300,000 for increased de-;
Oct.

velopment and research, with particular attention to
civilian products; $200,000 for plant relocation and con¬
solidation at the Hicksville, N. Y., site and for
expansion
of equipment; $100,000 for sales promotion and
related
activities; and $100,000 for general corporate purposes.

corporate

pur¬

• Sheaffer

(W.

A.)

Pen

,*v
'T'
(letter of notification). An undetermined number

Oct. 5

common stock
(par $1) and class B
(par $1) not to exceed $50,000. Price—At',
most
recent
Midwest
Stock
Exchange quotation.
Proceeds—For working capital.
Office—301 Avenue H,

stock

common

the

Fort
•

Madison, Iowa. Underwriter—None.

Shelbourne

Realty & Construction Corp.
Sept. 17 (letter of notification) 148,500 shares of class A
stock

common

(par 10 cents). Price—$2

•

Shell

Electronics

Mfg. Corp. (10/26-30)
170,000 shares of common stock (par 10
cents). Price^-$2 per share. Proceeds—For general cor-?
Aug. 28 filed

porate purposes,

including the repayment of indebted-*
the purchase of equipment, and for working cap¬
Office
112
State St., Westbury, L. I., N. Y,
Underwriter—Schwteickart & Co., New York.

ness,
ital.

—

Shield

Sept.

Chemical

Ltd.

(letter of notification) 95,000 shares of capital
stock (par 10 cents). Price^—$1.50 per share. Proceeds—
To purchase and install manufacturing equipment; con¬
trol

and

capital.

test equipment; advertising and for working
Office—17 Jutland Road, Toronto/ Canada. Un¬

derwriter—Peters,

Radiation Dynamics, Inc., Westbury, N. Y.
Sept. 8 filed 25,000 shares of common stock. The com¬
pany proposes to offei; to its stockholders the right to
subscribe to 11,325 shares at $10 per share, with war¬
rants to purchase an equal number of common shares at
$12.50 per share, on the basis of one new share for each
four shares held. Hayden Stone & Co. has agreed to pur¬
chase 2,500 shares for its own account and to use its best
efforts to place 11,175 shares with certain selected in¬
vestors at $10 per share, with warrants to purchase an
equal number of shares at $12.50 per share. Proceeds—
For working capital. Office—1800 Shames Drive, Westbury, L. I., N. Y.
Underwriter—Hayden, Stone & Co.,

Norstrand, President of the issuing company. Pur¬
to the contemplated merger of Rondout Paper
Mills, Inc. into Rondout Corp., it is anticipated that
Rondout Corp., as the
surviving company, will conduct
its business from 41 E. 42nd
St., New York, the present
office of Rondout Paper Mills, Inc.
Underwriters —
Sandkuhl & Co., Inc., Newark, N. J.; and S. B. Cantor
Co., New York. Offering—Expected sometime in October.

which

suant

if Radio Corp. of America
8

filed

400,000

which

Oct.

have

been

options which

fthe

RCA

Stock

may

have

been

stock

common

delivered

(no

the

par),

exercise

may

granted

Office

—

Option Plans.

under

Rockefeller

Plaza, New York City.
•

Radio

Frequency Company, Inc. (11/2-6)
(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mass.
Aug.

Underwriter—Myron A. Lomasney & Co., New York.
if Ranney Refrigerator Co.

(10/26-30)

shares, representing
outstanding stock, are to be offered for the accounts of
the present holders thereof. Price—$8 per share. Pro¬
ceeds
For expansion and working capital. Office—
Greenville, Mich. Underwriter — Campbell, McCarty &
—

Electronics

Research

ington, D.C. Underwriter—Weil & Co., Washington, D.C.
Raymond Service, Inc.
Sept. 3 (letter of notification) 300,000 shares of common
stock

(par 10 cents). Price—$1 per share. Proceeds—
machinery and equipment; retiring current indebt¬
edness; a sales development program and working capi¬

For

tal.

Office—36-40 37th

Street, Long Island City, L. I.,
Underwritef^The^James Co., New York, N. Y.
Offering—Expected any day.
Y.

outstanding bank loans and for working capital. Office
W. 78th St., Minneapolis, Minn.
Underwriter—
White, Weld & Co., Minneapolis.

Writer

Realsite, Inc. (10/19-23)
July 28 filed 200,000 shares of class
share.

Proceeds—To

pay

off

A stock. Priced—
$3

mortgages

and

working capital.

Office—Jamaica, L. I., N. Y.
writer—Robert L. Ferman &
Co., Miami, Fla.
• Rek-O-Kut
Co., Inc.
142,666 shares

are

shares of common
to be offered for the

issuing company and 71,334 shares

are

for

Under¬

account

the

common

stock,

87,322 of

to be offered to stockholders of record Oct. 15;

are

the basis of

one

new

to be publicly offered..
share; to the public, $15
per share.
(The remaining 69,230 shares are to provide
for conversion
of $692,300 of outstanding
6% deben¬
tures.)
Proceeds—For general funds.
Office—201 Bes-semer Building, Pittsburgh, Pa.
Underwriter—The com¬
pany President, Akiba Zilberberg, is underwriting the
issue on a best efforts basis, for which he is to receive
a
10% commission. Mr. Zilberberg is also a principal
officer of Tower Development and Investment Corp.,

held,

and 112,678 of which are
Price—To stockholders, $10 per

of the aforementioned

owner

•

Hardware

Simon

Co.

debentures.

(10/19)

Sept. 14 filed $800,000 of 7% sinking fund subordinated
debentures, due Sept. 30, 1971, and 80,000 shares of com¬
mon
stock
(no par), to be offered in units of $1,000

Price—To

quiring technical equipment and machinery, and adding
to
working capital.
Office —659
10th Avenue,
New

Underwriter—Chauncey, Walden, Harris & Freed,

Inc., 580 Fifth Avenue, New York.
in
•

three
St.

four

Paul

Offering—Expected

weeks.

Ammonia

$500 debenture and 50 shares of common stock.

one

open

be
or

one

supplied by amendment.
Proceeds—To
additional retail stores in Northern

balance to be used for general
Office — 800 Broadway, Oakland,
Calif. Underwriters—J. S. Strauss & Co., and York &
Co., both of San Francisco, Calif., and Mason Brothers,
Oakland, Calif.

California,
corporate

with

the

purposes.

Products, Inc.
$1,249,849 of 10-year 6% convertible sub¬
ordinated
debentures, due Dec. 1, 1969, to be offered for

• Sire Plan of
Tarrytown, Inc.
Sept. 15 filed (by amendment) $1,650,000 of securities,
consisting of $825,000 of 7% debentures and $825,000 of

subscription by common stockholders on the basis of
$10 principal amount of debentures for each 10 shares

$3.50

Oct.

filed

Price—At

100%

principal

amount.

Proceeds—

inventory accumulation with the balance, estimated
$125,000, to be added to working capital. OfficePaul, Minn. Underwriter—White, Weld & Co.,

South St.
New

York.

expected

mailed out about Nov.

Samson

that

the

7 and will

warrants

will

expire about Nov. 23.

Convertible

Securities Fund, Inc.
July 15 filed 200,000 shares of common siock. Price—To
be supplied by amendment.
Proceeds—For investment.

Office—23 Hazelton
Circle, Briarcliff Manor, N. Y.

Gen¬

eral

Distributor—Samson Associates, Inc. Offering—Ex¬
pected in late October.
•

San

Oct. 6,

Diego Gas & Electric Co.
1959 filed 500,000 shares of

offered
the

for

basis

subscription" by

(11/4)
common

common

stock, to be
stockholders on

supplied by amendment. Proceeds—To reimburse treas¬
ury funds of the comnany.
Office — San Diego, Calif.
Underwriter—Blyth & Co., Inc., New York and San
Francisco.

mon

non-callable,

preferred

participating

(par $50) to be offered in units of one $50 deben¬
and

one

of preferred

stock. Price—$100 per

unit; minimum sale is expected to be five units at $500.
Proceeds—For

general corporate purposes incidental
the acquisition of land and buildings in Tarrytown, N.
and
115

for

alterations

and

construction

thereon.

to
Y.,

Office—

Chambers St., New York

City. Underwriter — Sire
Portfolios, Inc., 115 Chambers St., New York City.

Plan

Skaggs Leasing Corp.
(letter of notification) 240,000 shares of common
(par $1). Price—$1.25 per share.
Proceeds—For

June 4
stock

general

corporate

Brothers

purposes.

Underwriter—Harrison

Co., Salt Lake City, Utah.

(J. M.)

Smucker Co.
165,000 shares of outstanding common
supplied by amendment. Proceeds
—To selling stockholders. Office—Orrville, Ohio. Under¬
Oct.

stock.

filed

Price—To be

writer—McDonald

(par

240,000

10 cents). Price—$1.25

shares of com¬
share. Pro¬

per

ceeds—For research and
development; increaese of plant
facilities; sales and training program; sales promotion

Co.,- Cleveland, Ohio.

• Sottile, Inc.
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),

the

Controls, Inc.
(leter of notification)

stock

cumulative,

stock

ture

new
share for each eight shares held
4; rights to expire Nov. 24. Price—To be

one

share for each five shares then

poses, including moving to new quarters and installing
executive offices and sound studio facilities
therein, ac¬

Sept.

be offered for

..,,.

Shopping Centers Corp.
1 filed 269,230 shares of

principal amount of debentures and 100 shares of com¬
mon
stock, transferable only as units until March 31',
1960.
The securities will also be offered in half-units

Scaico

stock, of which

Christensen, Inc.$ Denver,

Colorado.

Roulette Records, Inc.
Aug. 27 filed 330,000 shares of common stock (one cent),
of which 300,000 shares are to be
publicly offered. Price
—$3.50 per share. Proceeds—For general corporate pur¬

of record Nov.

•

per

employees of

the public.

For

Corp.

July 15 filed 165,000 shares of common stock (par $1),
subsequently reduced by amendment to 115,500 shares,
of which 100,000 shares will be offered to the
public.
Price—$8.50 per share. Proceeds—For general corporate
purposes.
Office—1029 Vermont Avenue, N. W., Wash¬

the

—4900

held.

Co., Inc., Detroit, Mich.

the company and the re¬
Price—To employees, $12.83 per
share; to the public, $13.50 per share. Proceeds—To pay

York.

Oct. 8 filed 43,500 shares of common stock (par $2.50)
of which 40,000 shares are to be offered for the -account
of the issuing company and 3,500

Raub

offered

mainder

share. Pro¬

working capital. Office—15
William St.,
5, N. Y. Underwriters—C. H. Abraham & Co.,
Inc., B. Fennekohl & Co., and Louis L. Rogers Co., all
of New York, N. Y. and Maryland Securities
Co., Inc.,
Baltimore, Md. Offeriing—Expected in late October.

New York

Oct.

York.

per

ceeds—For

poses, including working capital. Office—785 Park Ave.,
New York, the address of the
corporation as given in
the registration
statement, is the home address of Leif

if Rosemount Engineering Co.
Oct. 2 (letter of notification) 22,609 shares of common
stock (par 75 cents)
of which 7,799 shares are to be

I.r

Co.

of shares of class A

working capital. Office—40 Washington Place, Kearney,
N. J. Underwriter—Amos Treat & Co., Inc., New York.
Offering—Expected sometime in November.

New

Office—20-20 Jericho Turnpike, New Hyde
Park, L.
N. Y. Underwriter—Ira Haupt & Co., New York.

Co., Bridgeton, N. J.

June 18 filed 4,827 shares of preferred

and

the

company's oil exploration
program for the purchase of oil exploration and drilling
equipment, supplies and materials; to contract with U. S.
geophysical contractors for technical services; and to
pay its pro rata shares of the dollar exploration ex¬
penses under its agreement with three other companies
for joint exploration of concessions held in the
Philip¬
pines. Office—410 Rosario St., Binondo, Manila, Philip¬
pines. Underwriter—John G. Cravin & Co., Inc., New

—

thereof.

•

Puget Sound Power & Light Co. (10/28)
Sept. 21 filed $20,000,000 of first mortgage bonds, series
due Nov. 1, 1989. Proceeds—To repay outstanding bank
loans, due Jan. 1, 1960, incurred to finance construction,
which bank loans are expected to aggregate about $23,determined

holders

For general corporate

I., N. Y. Underwriter—D. A. Lomasney & Co., New
Offering—Expected in early November.

York.

000,000 at the time of such sale. Underwriter

—

York.

(letter of notification) 125,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For working capital. Office—c/o Charles E. Coleman,
Pres., 3300 West Grand Ave., Littleton, Colo. Under¬
writer—The issue will be underwritten by R. W. Newton,
Secretary-Treasurer.
7
Sept. 22

present

Proceeds

poses, including the repayment of indebtedness and for
tooling and production. Office—38-19 108th St., Corona,
L.

•
Porce-Alume, Inc. (10/19-23)
Aug. 3 (letter of notification) 300,000

the

share.

per

which

1,543,000 shares

account

the

are

company,

to be issued and sold for
and 457,000 shares, repre¬

senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be supplied byamendment.
Proceeds—To retire 70% of the common
stock

invest

outstanding at the date of the stock offering; to
in the capital stocks of six of the company's

Volume

190

bank

seven

The Commercial and Financial

5890

subsidiaries; to repay a bank loan of $6,400,to working capital; to retire certain long-

OuO; to add
term

Number

indebtedness; and to develop citru§„

groves.

Bell

Telephone

Telegraph

Office

Co.

(10/20)
Proceeds—To

phone

which

are

renay loans from American Tele¬
Telegraph Co., the issuer's parent company,
expected to approximate $64,000,000 at the

time the proceeds are received, and which were.incurred

mainly for property additions and improvements/ Office
—07 Edgewood
Ave., S. E., Atlanta, Ga. Underwriter—
To
be
determined
by competitive bidding. Probable
bidders: Halsey, Stuart & Co., Int.; Morgan Stanley &
Co. Bids—Expected to be received up to 11 a.m. (EDT)
on

Oct. 20 at

Southern Frontier Finance Co.

covering
ucts

the

purchase of receivables
financing of consumer prod¬

types of financing in which the company
Office — 615 Hillsboro St., Raleigh, N. C.

may engage.

Underwriter—None, but the
making

offering,

the

may

for
49

officials, who are:
10% commission to

company
a

pay

Gulf

Price—To

Inc.

Proceeds—For
general corporate purposes, including expansion. Office—
7630 Biscayne Blvd., Miami, Fla. Underwriter—Jaffee,
Leverton, Reiner Co., New York.
supplied

Airmotive

Southwest

Sept. 18 filed 200,000 shares of

common

stock (par $1), of

which 100,000 shares are to be offered for the account of
the issuing company, and 100,000 shares are to be offered
for the accounts of the present
To be supplied by amendment.

holders thereof. Price—
Proceeds—Together with
other funds, will be used for general corporate purposes,
including the addition of working capital, and the pro¬
viding of funds for adding to jet-engine overhaul facil¬

ities,

including the purchase of shop equipment and
special tooling required for this purpose. Office—7515
Lemmon Ave., Dallas, Tex.
Underwriters — Rauscher,
Pierce & Co., Inc. and Dallas Rupe & Son, Inc., both of
Dallas, Tex.
• Span America Boat
Co., Inc. (10/26-30)
Sept. 9 (letter of notification) 175,000 shares of common
(par 25 cents). Price—$1 per share. Proceeds—To
purchase raw materials; for sales program and working
capital.
Address—Exposition Park, Fort Dodge, Iowa.
Underwriter
R. A. Holman & Co., Inc., New York,

stock

—

New York;..--

•

•;

•

;■?

Aug. 21 filed 473,167 shares of common stock (par $5),
being exchanged for common stock of East Tennessee
Natural

Gas Co.

par)

East

redeemed

$6 per share).

Webster
of

New

Road, Great Neck, N.

Stop order proceedings instituted by SEC.

Standard

Beryllium Corp.

Sept. 3 (letter of notification) 150,000 shares of common
stock (par one cent).
Price—$1.50 per share. Proceeds
—For working capital and general corporate purposes.
Office—150 E. 43rd St., New York 17, N. Y. Underwriter
—R. G.

Williams & Co., Inc., New York, N. Y.

Offering

—Expected any day.
•

State Industries

Oct. 5 filed $500,000 of 6%

convertible subordinated de¬

bentures, due Oct. 1, 1974. Price—At 100% of principal
Proceeds—For general corporate purposes, in¬

amount.

cluding the purchase and installation of

modern paint

plant, and the purchase and installation of new tube mill
equipment. Office—4019 Medford St., Los Angeles, Calif.
Underwriter—John Keenan & Co., Inc., Los Angeles.,•

Steak'n

Shake,

15,

1959, on the basis of one new share for each
then

held.

Price—$4.62

per

stock¬

holders; unsubscribed shares will be publicly offered at
per share. Proceeds—For general corporate purposes,
including the developing of three drive-in restaurants
on
company-owned building sites. Office—1700 West
Washington St., Bloomington, 111. Underwriter—.White

& Co., St.
or

Louis, Mo. Offering—Expected in late October
early November.

SteHing Development Corp.
(letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For. mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
June 8

Strategic Materials Corp.
June 29 filed 368,571 shares of common stock (par
$1), to
be offered for subscription by common stockholders at
the rate of

one new

share for each five shares held. Price

Tennessee

and

shall

cancelled.

Securities
York.

one

of Tennessee

have

East

been

purchased

Tennessee

Corp., and White, Weld & Co., both

Statement

effective

Oct.

Proceeds

—

For

(par $1).
investment.

Street, Greenville. S. C.
Under¬
suppked by amendment. Statement effec¬

tive Sept. 25.

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
7% first mortgage convertible bonds, to be offered
in denominations of $500 and $1,000 each. Price—100%
of principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.
of

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price
$10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase.
Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., li
—

United

States

Fidelity & Guaranty Co.

Oct. 8 filed 910,743 shares of capital stock (par $5) to be
offered to stockholders on the basis of one new share for

capital and surplus. Under¬

writers—Alex. Brown &

Sons, Baker, Watts & Co., John
Co. and Stein Bros. & Boyce, all of Baltimore,

C. Legg &

Md.
U. S. Home & Development Corp.
Sept. 3 (letter of notification) 99,933 shares of class A
capital stock (par 10 cents). Price—$3 per share. Pro¬
ceeds
For construction of real estate developments.
—

Office

—

52 Neil

Sandkuhl

Ave., Lakewood, N. J. Underwriter —
Co., Inc., 1180 Raymond Blvd., RaymondOffering—Expected in

Commerce Bldg., Newark 2, N. J.
October.

Jan.

the

issuing company and 50,000 shares, representing
outstanding stock, are to be offered for the account of
the

holders

present

thereof.

Proceeds

—

improvements,

Price—To

supplied by
discharge bank loans, for
to increase working funds.

and

Office—1503 North Post Road,

Houston, Texas.
Under¬
writer—Moroney, Beissner & Co., Houston. Offering—
Expected in early November.

Texas Gas Transmission Corp.
(10/21)
Sept. 28 filed 150,000 shares of convertible second pre¬
ferred stock (par $100). This issue will
carry a dividend
.

exceed

5^%.

Price—To be supplied by amend¬
Proceeds —For expansion and construction
pro¬

Tower's

Marts, Inc.
Aug. 28 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce indebtedness by about $300,000, with the balance
to be added to working capital of the company and its
subsidiaries.

Conn.

Office—210

East

Main

Underwriters—To be supplied

Street,

Rockville,

by amendment.

Town

Enterprises, Inc. (10/26-30)
Sept. 30 filed 200,000 shares of class A common stock.
(par 50 cents). Price—To be supplied by amendment.
Proceeds—For expansion, and for the reduction of in¬
debtedness. Office—902 Orange Street, Wilmington, Del.
—

D. C.

Johnston,

Lemon

Co.,

Washington,

and

construction

for

Petroleum & Development Corp.,
Mangum, Okla.
March 20 (letter of notification) 300,000 shares of com¬
mon
stock.
Price-—At par ($1 per snare).
Proceeds—
For development of oil properties.
Underwriter—First

Planning Co., Washington, D. C.

Grand

Estes

Hotel

and

Con¬

vention Hall, to be

constructed in the immediate: vicinity
of Estes Park Chalet, located in Larimer County, Colo.
Office
330 South 39th Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo.
—

^United Utilities, Inc.
Sept. 2 filed 229,606 shares of common stock (par $10)
being offered for subscription on or about Sept. 29, 1959
in the ratio of one new share for each 10 shares held;

rights to expire on or about Oct. 13. Price—$29.50 per
share. Proceeds — For construction program. Under¬
writer—Kidder, Peabody & Co., New York.
Container

Universal

Corporation

Sept. 25 filed 167,500 shares of common stock (par 10
cents), of which 150,000 shares are to be publicly offered.
Price—$4 per share. Proceeds — For general corporate
purposes, including provision of funds for the purchase
of the assets of a similarly engaged enterprise, working
capital,

equipment, and expansion. Office—Louis¬
Underwriter—Michael G. Kletz & Co., New

new

ville, Ky.
York.

Offering—Expected in early November.

Universal Finance Corp.

July 13 (letter of notification) 10,000 shares of common
stock
(par 15 cents). Price—$5 per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
San

Antonio, Tex.

Urethane

Corp.

(10/26-11/1)

Sept. 25 filed 170,000 shares of class A capital stock

170,000 shares of common
of

one

tional

class A

170,000

and

stock, to be offered in units
one

common

share. An addi¬

stock will be offered
and to the underwriters.

common

of the company

unit. Proceeds—For general corporate
including the purchase of supplies, machinery,

Price—$5.05
purposes,

and

shares of

to the founders

Transcon

Investment

Enterprises, Inc.
4,500,000 shares of class A common stock

filed

(par 50 cents). Price — $2 per share. Proceeds-—For
development and construction of a "Western Village"

Underwriter—Dillon, Read & Co. Inc., New York.

Therm-O-Disc, Inc. (10/28)
Sept. 25 filed 121,057 shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds — To'selliiig stockholders. Office — Route 13,
Mansfield, O. Underwriters—Goldman, Sachs & Co., of
New York, and McDonald
&Co. of Cleveland, O.

•

held. Price—To be supplied by amend¬

filed

Underwriter

Inc.

Aug. 24 filed 65,505 shares of common stock, to be of¬
fered by subscription by common stockholders of record
Sept.

gram.

Underwriter

150,000 shares of common stock, (par $1),
of which 100,000 shares are to be offered for the account

ment.

share.

per

United Tourist
6

(par one

Office

the basis

Tex-Tube, Inc.

event less than

Proceeds—To selling stockholders.

—33 Great Neck
—None.

stock

presently
negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the redemption of the 5.20% cumula¬
tive preferred stock. Exchange offer will expire on Nov.
16, 1959, unless otherwise extended. Office—Tennessee
Bldg., Houston, Texas.
Dealer-Managers — Stone &

not

Programs

Main

ment. Proceeds—To increase

capital

common

$10.75

—

each five shares

amendment.

Price—At the market (but in

Price

Office—South

This offer is subject to various conditions, one of which
is that all of the 5.20% cumulative
preferred stock ($25

installations, fixtures and equipment; $85,000
expand two present establishments by increasing the
number of alley beds by eight at Yorktown Heights and

cent).

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock

Gas Common for 2.75 shares of East Tennessee common.

Inc.

participations

President.

for other

Sports Arenas (Delaware)
Nov. 18 filed 461,950 shares of

$5,500,000

Gas Co.

Tennessee Gas Transmission Co.

Oct.

•

N. Y.

(Delaware) Inc.
Nov. 18 filed $2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $35p,000 to pay

by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on leaseholds, telephones and utilities; and
$395,000 for working capital. Underwriter—None. Stoporder proceedings instituted by SEC. were terminated
on Sept. 22, and a decision is pending,

filed

Oil and

Office—Longview, Texas. Underwriter—None.

expenses and for working capital. Office—
Road, Waltham, Mass.
Underwriter — David
Co., Inc., New York. Offering—Expected any

St., Stamford, Conn. Underwriters—Amos Treat & Co.,
Inc. and Truman, Wasserman & Co., both of New York,

•

Sports Arenas

Oct.

writer—To be

Tassette, Inc. (10/15)
Aug. 26 (letter of notification) 100,000 shares of class A
stock
(par 10 cents). Price—$3 per share. Proceeds—
For purchase of furniture and fixtures, selling, adver¬
tising and other working capital. Office—170 Atlantic
;

1960 Trice

6001-4. Price—$5,000 per unit. Proceeds—For acquisition
and development of undeveloped oil and gas properties.

certain

Jones

per

•

offering has been deferred due to

•

amendment.

Co.

This

day..

(10/20-23)
Aug. 24 filed 135,000 shares of common stock (par 5c).
Utilities,

convertible preferred stock (par $1).
Price
share.
Proceeds—For general corporate pur¬
poses. Office—Bannard & Warrington Aves., East Riverton, N. J. Underwriter—R. L. Scheinman & Co., New
York, N. Y.
' , ' •
.'

—$5

conditions.

Barnes

dealers in connection with the sale of their shares.
Southern

York.

Metal Works, Inc.
(letter of notification) 60,000 shares of 40 cents

cumulative

Tang Industries, Inc.
May 25 filed 110,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;

the

for

used

installment

other

New

market

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working
capital and to

Oct.

Third Avenue, New York.
Underwriters—Paine, Webber,
Jackson & Curtis, and Halsey, Stuart & Co. Inc., both
of

Washington, D. C. Underwriter—None. Statement effec- "
tive Sept. 28.

^Tri

Sylvania Electric Products, Inc.
Sept. 1 filed $25,000,000 of sinking fund debentures, due
Sept. 1, 1984. Price — To be supplied by amendment.
Proceeds—To be applied to indebtedness.
Office—730

2315, 195 Broadway, New York N. Y.

room

„

capital; for expenditures by Strategic-Udy Metallurgical
& Chemical Processes Ltd., which owns and
operates
a
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal subsidiary,
and by its other direct subsidiary,
Strategic-Udy Pro¬
cesses, Inc., which owns and operates a laboratory at
Niagara Falls, N. Y.; as working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.
Lunt & Co., Buffalo, N. Y.; and Allen &
Co., New York.

Sept. 25 filed $70,000,000 of 35-year debens., due Oct. 1,
1994.

(1619)

—To be supplied l^y amendment. Proceeds—For
payment
of
bank loans;
for payment of a note; for working

—250 South East First
Street, Miami,
Underwriter
-—Bear, Stearns & Co., New York. Offering—Indefinite.

Southern

Chrcjjgicle

per

equipment, and the leasing of a Los Angeles plant

Office—235 Montgomery St.,
Underwriters—Wilson, Johnson &
Higgins of San Francisco, and Evans, MacCormack &
Co., of Los Angeles.
Val Vista Investment Co., Phoenix, Ariz.
June 29 filed 80 investment contracts (partnership in¬

for manufacturing purposes.
San

Francisco, Calif.

• Transportation Plan, Inc.
7
filed $600,000 of 7%
convertible subordinated
debentures, due November, 1969, 60,000 shares of com¬
mon stock (par one cent) and 30,000 common stock purchase warrants, to be offered in-units consisting of $100

terests) to be offered in units. Price—$5,378.39 per unit.
Proceeds—-For investment. Underwriter—O'Malley Se-

curities Co.

Oct.

debentures, 10 common shares, and 5 warrants. Price
—$150 per unit. Proceeds—For general corporate pur¬
poses,

New

including working capital. Office—120 Broadway,
City. Underwriter—Ross, Lyon & Co., Inc.,

York

New York.
Treasure

Hunters, Inc.
June 4 filed 1;900,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For salvage op¬
erations.

Office—1500

Massachusetts

Avenue,

W.,

Statement effective Aug. 11.

Variable Annuity Life

April 21

filed

$4,000,000

Insurance Co. of America
of Variable Annuity Policies.

$120 a year for annual premium
contracts and no less than $1,500 for single premium
contacts.
Proceeds—For investment, etc. Office—1832
Price—No

less

M Street, N. W.,

than

Washington, D. C.

Underwriter-^-None.

Continued

page

(1620)

The Commercial and Financial Chronicle

Continued from

page

Western

Massachusetts

Electric JCo.

(10

21)

derwriter—S.

Sept. 23 filed $8,000,000 of first
mortgage bonds, series
Corp.
D, due Oct. 1, 1989. Proceeds—To pay
outstanding bank
Oct. 6 (letter ol notification) 4,000.. shares of class A
loans, Underwriter—To be determined, by competitive
capital stock. Price—At par*($10 per share). Procfieds==~
bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.; ~
For expenses incidental to exploring and developing gas
Eastman Dillon, Union Securities &
Co.;. Equitable Se¬
properties. Address — P. O. Box 6, Burlington, Vt.
curities Corp. and Lee Higginson
Corp. (jointly); The
Underwriter—None.
"
First Boston Corp. and
White-, Weld & Co. (jointly);
Blyth & Co., Inc. Bids—Expected to be received up to
Vernors Ginger Ale, Inc. (10 20)
11 a. m. (EDT) on Oct. 21 at the office of the
Sept. 15 filed $7o0,000 of GVz% sinking fund debentures,
company,
201 Devonshire St.,
•due Oct. 1, 1974, with common stock purchase warrants
Boston, Mass.
Vermont

Natural

Gas

Mineral

attached, and 282,760 shares of

Price—
The debentures are to be offered at 100% of principal
amount plus accrued interest. The price of the common
shares will be $7 per sharft. Proceeds—From the sale of
the debentures, to redeem preferred stock and for use as
working capital; from the sale of the common stock, to
common

stock.

Western
Oct.

Wilson

Wisconsin

560,000 shares of

working
N. Y. Under¬

porations, and to the

owner

that company.
Office—Mountain Brook, Ala.
became effective on July 20.
Vulcan

Materials

cor¬

assets

Statement

Co.

Sept. 15 filed 230,000 shares of common stock. Price—To
supplied by amendment. Proceeds—The stock will

■constitute part of the purchase
price to be paid for W. E.
•Graham and Sons and for
Wegco

Inc.

Office—Mountain Brook, Ala.

Equipment Rentals,
Under writer-ZNone.

•

Waltham Engineering and Research
Associates
July 28 filed $1,065,000 of. participations in
partnership
interests. Proceeds—To purchase land and
buildings of
"Waltham' Engineering and Research

:Mass., and for

Center, Waltham,

Washington

gage notes secured by real estate. Office—1028
Connecti¬
cut Ave., N. W.

Washington, D. C. Underwriters—Amer¬

Diversified

Mutual

Securities, Inc.

and

Gildar

Co., both of Washington, D. C.

Washington Planning Corp. (11/2-6)
■Oct. 1 (letter of
notification) 24,286 shares

(

Lander, Wyo. Underwriter—C. A.
Pittsburgh, Pa.

new

class

(par 10 cents). Price—$3 per share. Proceeds—
To go to the company. Office—52
Broadway, New York

4, N. Y. Underwriter—Heft, Kahn &
Infante, Hempstead,

Offering—Expected in

late October.

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common
cents.

•

York

Price—$6

per

stock

(par

share.

foil

Western Wood Fiber Co.
5 filed 100,000
shares of

common stock
(par $10)
40,000 shares of preferred stock
(par $25). Price
par.
Proceeds—For construction and
equipment of
company s plant and for
working

and

Montgomery St.,

capital.

San

None.

Francisco, Calif.

West Florida Natural Gas
Aug. 31 filed $837,200 of 7^2%

Office—300

Underwriter-—

Co.

30-year subordinated in¬
debentures and warrants to
purchase 25,116 shares
-of class A common
stock

come

($1 par). Price—$100 per unit
consisting of one $100 debenture and
a warrant to
pur¬
chase three shares of class A
common
*

A.e aPP*!.ed> together with

?fo^\!fS«illgonCOmpa"y',

stock. Proceeds—
moneys in the sinking fund

to the ademption

of the out¬

standing 6 ,c 20-year debenture bonds at their redemp4.^°" Price, °£ J°|.% °f their principal amount. Office^nfin &
TreetskPanama City, Fla. Underwriter
—Beil I"
w

Hough, Inc., St. Petersburg, Fla.

"m1

H?ntage Life Insurance Co.
26 filed 500,000 shares of common stock.

Office
•wn

Corp.
150,000 shares of class
Price—$3 per share. Proceeds — For
purposes, including the discharge of
ness and the purchase and installation

dealers.
per

Price—

K0n^ °f the ShareS
by the

may be SOld by Sales"

company, or by registered brokercommission not to
exceed 17%* or 34 cents
may be paid to sellers of such
shares.

Conn,

Union Gas Co.
4..'-,
reported that the company is contem¬
additional equity financing, the form it will
decided on shortly. Proceeds—For construc¬
•

House,

Inc., Lansing, Mich.
company plans to issue

Co.,

share.

per

Proceeds

—

build

chain

and

coffee

July 30 it

(12/1)]

reported that the company plans the is¬
first and refunding mort¬
Proceeds — For construction expenditures.

was

and sale of $50,000,000

suance

gage bonds.
Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;

Stanley & Co.; The First Boston Corp.
to be received

bidding.

Morgan
Bids—Expected

Dec. 1.

Consolidated

Natural Gas

Co.

19, James Comerford, President, announced that
plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly);
White, Weld
& Co. and Paine, Webber, Jackson & Curtis
(jointly).
May

company

Inc.,

A stock

(par $1).
general corporate
various indebted¬

Cyprus Mines Corp.
July 15 it was reported that approximately 1,000,000
shares of a secondary issue common stock will be regFenner & Smith Inc., New York.
Dallas

Power &

Aug. 3 it

Light Co.

mined.

art

Inc., Lansing, Mich.

announced that the corporation plans to
100,000 shares of common stock (par $1).

new courses and resident
study schools.
correspondence school business. Office—
1609 Kalamazoo St., Lansing, Mich. Underwriter — In
New York to be named in early October. Offering—

and expansion of Bell Telephone services.
Underwriters—To be determined by competitive bidding.
Probable bidders: The First Boston Corp. and Halsey,

Nov. 17.

Co.

June

(jointly).

Bids—Expected to be received

15.

was

announced

Kansas City,

that- the

company

Mo.
contem¬

facture of aircraft and missile parts, aluminum containers
and beer barrels, aluminum curtain wall sections for the

building

debentures.

Underwriter

—

—To

determined

competitive

bidding.

Probable

bidders: Stone & Webster Securities Corp.;
"

Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly); Eastman
Dillon;0Union Securities & Co. Bids—Expected to be
received

Dec. 8.

Bank of Miami, Fla.
announced stockholders have approved
a proposed offering to stockholders of 150,000 additional
shares of capital -stock (par $10) on the basis of one
First National

Sept. 14 it

new

v/as

share.

for

each

Proceeds—To

four

increase

held.

Price—$40

capital and surplus.

per

Un¬

derwriter—None.
•
Georgia-Pacific Corp.
Aug. 19 it was reported that the

plans to reg¬
preferred stock,
conversion of which would add about 600,000 shares
to the number of common shares currently outstanding.
Proceeds
For expansion.
Office — Olympia, Wash.
Underwriter—Financing in past has been handled by
ister

about

$10,000,000

company

convertible

—

Manufacturing Co.,

offering of $4,500,000 of common stock.
Pro¬
ceeds— For expansion program and additional
working
capital. Business—The company is engaged in the manu¬
plates

convertible

Oct.

Atlantic

ties

Fall.

it Fall River Electric Light Co. (12/8)
15 it was reported that the company plans sale of
30,000 shares of preferred stock (par $100). Underwriter

(jointly); Morgan Stanley & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan
Stanley & Co.;
White, Weld & Co. and Eastman Dillon, Union Securi¬

this

year.

Inc.

—

sometime

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly); White, Weld
& Co.; The First Boston Corp. and Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Offering—Expected later this

provement

Bell Telephone Co. of Pennsylvania
Sept. 25 it was announced that the company plans the
sale of $30,000,000 of debentures dated Dec.
1, 1959.
Proceeds
To replace short - term borrowings used to
finance construction. Underwriter—To be determined
by

Offering—Expected

determined

American Telephone & Telegraph Co. (11/17)
Aug. 19 the directors authorized a new issue of $250,000,000 of debentures. Proceeds—To be used for the im¬

this year.

yet been deter¬

Co.

dinated

Planned for mid-October.

City Electric Co.
Aug. 3 it was reported that the directors are contemplat¬
ing the issuance and sale of a small amount of coniiQOji
stock, after a three-for-two stock split. Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬
curities & Co.; and Smith, Barney &
Co., both of New
York.
Offering—Expected during the latter' part of

Duquesne Light Co.
Aug. 3 it was reported that the company is contemplat¬
ing the issuance of an undetermined amount of subor¬

introduction of

types has not

Hutzler;

Corp.

Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to a national one, and

received

Underwriter—To be determined by competitive
Probable bidders: (1) For bonds: Halsey, Stu¬

Inc.;; The First Boston Corp.; Salomon Bros.
Kid&'er, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,
Union Securities & Co.; Blair & Co., Inc. and Baxter 8c
Co.
(jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc. and Merrill Lynch, Pierce, Fenner & Smith
Inc. (jointly); Salomon Bros. & Hutzler; Equitable Se¬
curities Corp.; Eastman Dillon, Union Securities & Co.;
Lehman Brothers; Blair & Co. Inc.; The First Boston
&

reported

was

Co.

contemplates
of senior se¬

bidding.

New Mexico, ahd for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M

Stuart &

reported that the company

was

curities, but type

que,

—

industry and other proprietary products. Un¬

;

Consolidated Edison Co. of New York Inc.

that the company will registei
debt and equity securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬

issue and sell

■:

announced

was

houses, establish commissaries and for general corporate
purposes. Office — 1500 Clifton Ave., Lansing, Mich.
Underwriter—In New York to be named in earJy Octo¬

Gypsum Co.

was

Coffee

Prospective Offerings
American

it .was

some

the issuance and sale of about $20,000,000

July 15 it

'v-\:^

\'y-

Aug. 31

of new equipment;
for the establishment of a new testing laboratory
Office—Stamford, Conn. Underwriter—Myron A. Lomas¬
ney & Co., New York.

Benson

general corporate purposes.
Road, Phoenix, Ariz. Under-

share,

and

sell 100,000 shaies of common stock (par 10 cents). Price

bank

and

Dec.

S^Gir r0if/re^S~^or
533 East McDowell

^nvp'l
mploj ed

180

Research

Business

Proceeds—For repayment
bank note; to complete the
automation of the etched
production plant at
Englewood, N. J.; for manu¬
facture of machines to be
leased to capacitor manufac¬
turers; and for working capital. Office—65
Honeck St.
Englewood. N. J. Underwriters—Amos Treat
& Co., Inc.
and
Truman, Wasserman & Co., both of New York'
Statement effective
July 8.
of

com¬

—

short-term

Benson

Aug. 10 filed

Aug. 31 it
of

A stock

Office

filed

—

expansion

■'./
'/••:/■•••' %v •/'.;
Transportation, Irx.
July 17 the company sought ICC approval for the is¬
suance of 250,000 shares of class A common stock
(par
$1).
Underwriter—Cruttenden, Podesta & Co., Chicago,
istered in the Fall. Underwriter—Merrill Lynch, Pierce,
111.
Price—$10 per share.
New Name—The company'*
name will be changed to Buckingham Freight Lines.
;

Bros. & Hutzler (jointly);
Kidder, Peabody &
White, Weld & Co. (jointly).

American Jet School,

•

Proceeds

for

Buckingham

Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
mon stock. Price—At par
(three cents per share). Pro¬
ceeds—For mining expenses". Office—Noble Hotel
Bldg.,

Mortgage and Development Co., Inc.
Sept. 29 filed 100,000 shares of common stock
(par 10c)
Price—$5 per share. Proceeds—For investment in mort¬

treasury

tion program. Offering—Expected before the end of the

expenses connected to

offering is expected prior to Nov..

ican

retire

shares held.

Underwriter—Previous financing was arRamsey & Co., Inc., Bridgeport,

expenditures.

year.

Public Service Corp.
(10/29)
$8,090,000 of first mortgage bonds, series
due Nov. 1, 1989.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co.; Kidder, Peabody &
Co.;
The First Boston Corp.; Kuhn, Loeb & Co. and Ameri¬
can
Securities Corp. Bids—Expected to be received up
to 11 a.m. (EST) on Oct. 29.

the purchase. Of*
flee—49 W. 32nd
Street, New York 1, N. Y. Underwriter
—The First Republic Underwriters
Corp., same address.
The

seven

company's

ranged through Smith,

take will be

and

Wisconsin

Sherman Concrete Pipe
and

used

the

ber. Offering—Planned for mid-October.

Oct.

stock of these three

each

for

—$3

Co. and

stock, to be offered
to the stockholders of Ralph E. Mills
Co., Talbott Con¬
struction Corp. and Talco
Constructors, Inc., in exchange

Co., Chattanooga, Tenn., for the business

filed

new

reimburse

stock to stockholders in the ratio of one

Salomon

for

common

for all the outstanding
capital

Proceeds—To

Registration

loans, to reimburse treasury, and for additions and im¬
provements. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc. and

Vulcan Materials Co., Inc.
June 29 filed 10,000 shares of 614% cumulative
preferred
and

1989.

Vita-Plus Beverage Co,, Inc.
Aug. 11 (letter of notification) 300,000 shares of common
«tock (par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation

etock

common.

Thursday, October 15, 1959

Fuller & Co., New York.

common

new

plating

Michigan Power Co*, Milwaukee, Wis.
$3,000,000 of first mortgage bonds due

Sept.

Aug.

Office-

Co.,

Bridgeport Gas Co.
Sept. 9 it was announced that stockholders will be asked
on
Oct. 27 to approve the issuance of about $1,160,000

Brooklyn

stock, to be of¬

the basis of one share of Wilson

for five shares of

Virginia
Madison Ave., New Xork.

writer—Original underwriter has withdrawn.

•capital. Office—373 Herzl St., Brooklyn,
writer—Caldwell Co., New York, N. Y.

common

Brothers

Coke Co.

and
mon

Dame Avenue at King Street, Winnipeg, Canada. Under¬

distribution and

—Expected sometime in October.

Assurance Co.

Aug. 31 filed 261,752 shares of common stock, to be
exchanged for the common stock of Virginia Iron, Coal

Raceway
May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—
To construct and operate a racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre

of national

capital.

Victoria

program

100.000

Cleveland, Ohio. Underwriters—McDonald &
Ball, Burge & Kraus, both of Cleveland, Ohio.

Vernor, deceased, the selling stock¬
holder. Office—4501 Woodward Avenue, Detroit, Mich.
Underwriters—Baker, Simonds & Co., Inc., of Detroit,
and Wm. J. Mericka & Co., Inc., of Cleveland, Ohio.

filed

Life

fered for subscription by stockholders at the rate
of one
new share for each share held. Price—To
be supplied by
amendment. Proceeds — For'working

the Estate of James

Reserve

Blyth & Co., Inc.
Gulf States

Offering—Expected later this year.

Utilities Co.

(11/24)

reported that the company plans the is¬
of $16,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Merrill
Aug. 20 it

suance

and

was

sale

Lynch, Pierce, Fenner & Smith Inc. and White, Weld &

Volume

190

Number 5890

The Commercial and Financial Chronicle

(1621) * 45Co.

(jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Lehman Bro¬
thers; Stone & Webster Securities Corp. Bids—Expected

to be received up to 11.a.m.

^Hawaiian Telephone
Aug. 3 it

was

(EST)

stock

(par $100). Underwriter—To be determined by
competitive bidding. Probable bidders: Lehman Broth¬
ers; Equitable Securities Corp.; Kidder,
Peabody &

Co.;
Higginson Corp,, and White, Weld & Co.
(jointly);™
Lynch, Pierce, Fenner & Smith inc., and East¬
man
Dillon, Union Securities & Co. (jointly). Bids—
Expected to be received on Dec. 9.

Nov. 24.

Co.

bonds.-

new

Last

bond

issues

placed

were
•,

New-Era Corporation,
Rochester, Mich.

Sept. 1 it was reported that this company contemplates
the early registration of
approximately 200,000 shares of
common stock.
Business—Manufacturer of mufflers and
Underwriter—Mortimer B. Burnside & Co., Inc.,

gears.

ceeds—To

per share. Proceeds—For acquisition of radio sta¬
tions.- Business—Radio
broadcasting. Office—130 Shepard St.,
Lansing, Mich. Underwriter—In New York to

New York.

be named in
early October. Offering—Planned for mid-

October.
•

■/.'

"'<7

'.'o' w''"-

;v;

preferred

Kansas City Power & Light Co.

For

was reported that the
company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—

program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey
Stuart & Co. Inc.; The First Boston Corp. and
Blyth &

(jointly).

Bids—Expected later

the

Oct. 1 it
the

Bellas

issuance

convertible

sale

and

the

company

debentures

offered

Sept.

for

stock

and

Underwriter—White,
•'vv

basis

New

approved a proposal to
shares of common stock

Sept.

& Co.

for

the

reported

was

stock

common

National Mail Order Co., Lansing, Mich.
Oct. 5 it was announced
company plans to register

(Howard W.)

that this company plans a
offering, part of which will be sold for
the company's, account and part of which will be sold

Proceeds—For gen¬
Underwriter — Stern Brothers

eral corporate purposes.
& Co., Kansas City, Mo.

York.

Sams

account

certain

selling stockholders.

New

New York

was

Underwriter

To be

1959.

1, N. Y.

Proceeds—To repay
construction

bank loans incurred for

program.

Corp., Kidder, Peabody-& Co., Lee Higginson
Corp. and White, Weld & Co. (jointly); Blyth & Co.,
Inc. Bids—Expected to be received sometime in Decem¬
ber.

issues

Sept. 17 it

beeD

the sale of about $7,000,000 of

rities

New

Tampa Electric Co.
Sept.

17 it

issue

and

(12/9)
that this company

announced

was

sell

100,000 .shares

cumulative

offering
been

plans to
preferred

however, to have meant

away,

price
line

that

with

would

ideas

The rank and

taste

thusiastic
In

fact,

their
looked

The

experienced
hands
vicinity of the invest¬
markets are expressing the

around the
ment

some

belief
like

under¬

Was not too en¬
such
prospects.

were

that

outspoken in
such

move

"pressing one's luck"

bit hard.
It

was

this line of thinking that

brought the mild reversal of the
that the rousing success of recont
upward trend as dealers
Treasury's
"Magic
Fives"
sought to take a little cash into
operation does not generate an the tills in
place of paper profits.
overdose of optimism among un¬
the

their

and

dealer

or¬

Southern Bell Debentures

ganizations.
The

behavior

splendid

markets

the

since

wildfire

the

over¬

subscription of the Treasury's note
has, it appears,

issue

ing up

ably

been build¬

head of steam,

the

theory

the public as

well

presum¬

that

shows

institutional

investors have funds available for

investment if the terms
As
for

right.

are

offering

million

new

first

$50

mortgage

bonds by

Philadelphia Electric Co.
awaited with some trepida¬

tion around the Street because of

that prospective buyers
indication of being inclined

reports
gave

to bid

come

The successful bid for the issue,

fixed

'ng

cated

return

eight

some

nr;"°

cet

4.93%,

basis points

had

were

indi¬

some

better

exnec+ed.

runners-up

and

coupon

six

than

the market for funds and
rent

lowing day
sion

far

issue,

Tuesday.

the

slated

for

market about five weeks hence.
far

the

market

money

the

current

scheduled,

frained
or

from

AT&T

non-callable clause as a
of obtaining a slightly bet¬

year

means

ter rate

such paper.

currently

are

with

there will be

million.

ing of

ing. Instead it will be all those
millions

(Special to The Financial Chronicle)

D. Eisenhower.

and

William

the

staff

15 North Fulton

have

Hall

Right, Mr. President, but isn't it about time that

Hall,

Ulrich

the Administration itself take the lead in establish¬

Street.

ing the foundation which would
this most

AT&T

year

issue,
carried

non-callable clause.

serve

accomplish

worthy objective?

Grant, Fontaine Adds
CSpeclcil to The Financial Chronicle)

D'Orazi Adds

bell

has

been

added

Grant, Fontaine &
Twenty-First Street.

staff

the

Co.,

With J. B. Hanauer

(Special to The Financial Chronicle)

OAKLAND, Cal.—Alan J. Camp¬

(Special to The Financial Chronicie)

SAN

360

FRANCISCO, Calif. —Alex-

J. Labendz has

to the staff of D'Orazi

been added

Investment

Company, 9 Sutter Street.

BEVERLY
L.

Stern

with

HILLS, Calif.—Milford
has

associated

become

Hanauer

Co.,

140

South Beverly Drive.

Now With Bache

LOS

rpmBed,

depending upon insurance
pension plans for old-age
security." — President Dwight

Eisenhower

FRESNO, Calif.—Lillian O. John¬

has become associated with Bache

major

hands

the wealth of the United States

ditions

last

their

and

Pres.

that

The

with

brains, typewriters, shovels
and all the rest, are
producing

CHICAGO,

action.

who

and

right to
impending issue at any
time should changed money con¬
such

cheapen¬
and it won't

and

the

warrant

further

our money,

be the rich that will be suffer¬

Two With Hall & Hall

and that it will retain the

call

are

re¬

five

Co.

Yellow Transit Freight Lines, Inc.
Sept. 1 it was announced that subject to ICC approval,
it is planned to offer 206,000 shares of common
stock,
of which, 100,000 shares will be for the
company's ac¬
count and the remaining 106,000 shares for the account
of certain selling stockholders.
Proceeds—For working
capital. Underwriter—Blyth & Co., Inc., New York. Of¬
fering—Expected sometime in October.

Thursday, Rochester Gas &
Corp., is set to market $12
million of bonds through competi¬
tive bidding.
The
week
gets
off early on
Monday with bidding for $20 mil¬
lion
debentures
of
the
City of
Montreal, Canada.

affili¬

the

recourse

Insurance

Electric

Massachusetts

firmer

ated operating companies have

Life

was

best

joined

Thus

Fidelity

reported that the company plans to use
efforts to register 5,000,000 shares of common
stock with the SEC. Price—$1 per share. Office—314
First National Bank Bldg., Colorado Springs, Colo.
its

Electric

lion

securities

Inc.; The First Boston Corp.; Coffin &
Bids—Expected to be received on Dec. 7.

financing is going to have to be done under very
unsatisfactory methods, to the
damage of all of us. In the long
run
there
will
be
inflation,

The fol¬

Co. due to open bids for $8

son

new

Smith

pa¬

company,

Burr, Inc.

living in a time of prosperity that looks
assuming boom proportions. If now, today,
can't pay off some of the Federal debt, then our

noted

Gas Transmis¬

Texas

stock

(12/7)

this

that

like it is

Corp. has $15 million of pre¬

ferred

announced

Inc.; Kidder, Peabody & Co.; Blyth & Co., Inc., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce, Fen¬

"We

spell.

is, of course, the largest by
on

was

sell

Wise Counsel... But

corporate

quite

Bell's

far, and due

American
Tele¬
phone & Telegraph, has $250 mil¬

t^e

sufficiently

Southern

Southern Bell will hew to the line
however,

is, if all the major prospects
through on schedule.

above

of 35-year ,debentures up for
competitive bids.
Several other
Bell units have recently been in

Indications

fully for the bonds.

That

issues

day.

Activity

lion

matter of fact, the bidding

yesterday's

was

Next Tuesday will bring South¬
ern Bell Telephone Co.'s $70 mil¬

volume

best

debt

Western

hope

derwriters

the

recent is¬

on some

about

Bit

The ensuing week gives promise
new

file, having had

naturally

sues,

those

substantial

writing profits

was

have

thinking in lower terms.

Reporter's

reported that the company

is planning
additional common stock,
probably in the form of a rights offering and a negoti¬
ated underwriting. Last rights offering was underwritten
by Stone & Webster Securities Corp., New York.

England Power Co.

Sept.

14 it

any

County Electric Coi

company plans to
$7,500,000 of first mortgage bonds, series
E, due 19j39. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

cur¬

have

St., New York City. Underwriter—

Underwriters, 49 W. 32nd St., New York

Offering—Expected

Worcester

Aug. 17 it

placed privately.

years

Office—Jacksonville

World

rent

two

initial conversion price

share, with the conversion price to increase
share per year thereafter.

8th Avenue and 44th

22, S. C. McMeekin, President, announced plans
sell approximately $8,000,000 of bonds in
December,

per

First Republic

Underwriters—

June

150,000

Mid-City Parking Center
Sept. 22 it was reported that $1,015,000 of partnership
participations will be registered in the immediate future
with the Attorney General of the State of New
York,
for offering to New York State residents
only. Price—
$2,500 per unit. Proceeds—To purchase the property at

Under¬

South Carolina Electric & Gas Co.

cap¬

determined

by
competitive bidding. Probable bidders: Lehman Brothers;
Merrill Lynch, Pierce^ Fenner & Smith Inc. and Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬
—

cleaners.

preferred stock, of which

Velvex

ner

$10,000,000 of preferred stock. Proceeds—For

ital expenditures.

per

Co.

vacuum

is contem¬
additional com¬

company

some

starting

$22

Kidder, Peabedy & Co., New York, and McDonald & Co.,
Cleveland, Ohio.

Telephone & Telegraph Co.
reported that the company will issue and

convertible

after their date of issuance at

England

Aug. 19 it
sell

Fetzer

Manufactures

—

new

issue and

Scott

ness

State, within 30 days."

Lynch, Pierce,

ing 12,000 acres of land in Hillsborough County, Fla.
The initial series will have a
par value of $100 per share
and a dividend rate of'4%%
annually. The shares will
be convertible into common stock

Sept. 14 it was reported that the company plans early
registration of 100,009 shares of common stock. Busi¬

Sheparcl St., Lansing* Mich. Underwriter—To be named

; .
that the

initial series of 43,200 shares will be issued in
exchange
for all the outstanding stock of five
corporations own¬

few days an

later in

Office—Houston, Texas.

Line Co.

Universal Marion Corp.
Sept. 30 shareholders approved the issuance

Indiana.

issue of 100,000 shares of common stock
(par 10c). Price—To Be supplied by amendment. Pro¬
ceeds—For expansion and working capital. Office—130

first

Underwriters—Lee Higginson
Corp., 'New
York; and Straus, Blosser & McDowell, Chicago, 111.

writer—Indianapolis Bond & Share Corp., Indianapolis,
in

stock.

present, 3,000,000

Pipe

was

(par $2.50).

sale

was

Sept. 10 it was reported
plating the issuance and sale
mon

shares of

III.

the

Fenner & Smith Inc., both of New York.

exact

The ICC has approved the proposed
two-for-one stock split. Underwriter—Blyth &
Co., Inc.,

authorized to 4,000,000 shares.

now

terms

yet been set. Proceeds

reported that the company plans issuance
this Fall of an additional 75,000 shares of
present com¬
mon stock
(par $5), or 150,000 shares of new common

is considering
approximately $5,000,000 of

subordinated

Stockholders

increase

Co., New York.,

Aug. 3 it

subscription by present stockholders on the
$100 principal amount of debentures for each
held."

The

with

and preferred stock. Pro¬
funds for the financing of

reported that this company expects to
issue and sell $40,000,000 to $50,000,000 of new
securi-,
ties, probably in units. Proceeds—To build a pipe line
from West Texas to the Arizona-California
border.
Un¬
derwriters—Lehman Brothers and Merrill

Ryder System Inc.

Hess,

Inc.
reported that the

was

Fall.

1960

permanent

Transwestern

year, or early in 1960.

National

Inc.

Sept. 14 it was reported that the company plans early
registration of 110,837 shares of common stock, part of
which will be sold for the account of the
company and
part for the account of certain selling stockholders.
Proceeds—To increase capital and surplus. Underwriter
—A. G. Becker & Co. Inc.,
Chicago, 111.

(jointly); Equitable Securities Corp.; White.
Weld & Co. and Shields & Co. (jointly);
Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear
Co.

this

common

Trav-lerv Radio Corp.

Reserve Insurance Co*,
Chicago,

Co., inc.

later

Co.,

—To finance construction
program,

Weld &

construction

Stearns

stock

Gas

timing of the offering have not

Dec. 29 it
«nd sell

Piedmont Natural

twice

its 1960 expansion
program.

Sept. 25 it was announced that this company contem¬
plates the issuance of about $3,500,000 of convertible

-j-$3

raise

Aug. 25 it

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common
stock (par 10 cents). Price

market

mortgage bonds, and

Merrill

reported company received approval from

come

Lee

the Territorial Public
Utilities Commission to issue about

$4,500,000 of
privately.:

Transcontinental Gas Pipe Line Corp.
Sept. 29 it was announced that the company plans to

Joins

(Special to The Financial Chronicle)

111. —Paul

Dempsey-Tegeler

(Special to The Financial Chronicle)

Sabre

ANGELES,

1957,

G^Claussen'has'

five-

Co., 140 South Dearborn Street,
was
formerly
with
Paine,
Webber, Jackson & Curtis.

Calif.—William

Dempsey-Tegeler

West

Bache Adds to Staff
(Special to The Financial Chronicle)

Seventh Street.

Co.,

210

BOSTON. Mas,-Paula C. Franks
h»s been added to the statf of
Bache

Co., 21 Congress Street."

(1622)

The Commercial and Financial Chronicle

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

AMERICAN

IRON

AND

STEEL

Indicated Steel operations
Equivalent to—V

(per cent capacity)-,—

Steel

(net

ingots

AMERICAN
Crude
42

and

PETROLEUM

oil

and

gallons

Crude

castings

•

Oct.

(bbls.)

output

(bbls.)

Distillate fuel oil output

6,858,325

6,784,625

7,013,585

6,824,775

117,618,000

7,722,000

8,132,000

29,450,000

1,730,000
12,276,000

12,155,000
6,333,000

6,373,000

175,857,000

180,896,000

181,509,000

32,231,000

31,354,000

31,317,000

163,198,000

156(528,000

57,507,000

.Oct.

174,169,000

—Oct.

32,217,000
172,401,000

59,524,000

59,398,000

—

Public

.Other

OUTPUT

Bituminous

(U.

coal

68,742,000

STORE

ELECTRIC

Electric output

AVERAGE

182,800,000

110,000,000

85,300,000

225,600,000
120,000,000

Oct.

14,300,000

105,600,000

$408,400,000

$338,800,000
228,800,000

Oct,

7,645,000

Oct.

433,000

227,911,000
184,271,000
43,640,000

•7,795,000

7,340,000

8,663,000

422,000

427,000

478,000

AGE

142

Oct. 10

(in 000 kwh.)
INDUSTRIAL)

DUN

—

145

148

COMPOSITE

13,234,000

13,109,000

(New
(St.

IZinc

York)

Louis)

12,067,000

Aluminum
Straits

tin

MOODY'S

224

222

6.196c

$66.41

Oct.

$43.50

$43.17

$40.83

$42.83

—.

——

Oct.

7
7

32.550c

31.150c

28.125c

27.675c

28.750c

13.000c

12.800c

12.500c

11.500c

11.000c

12.000c

11.000c

24.700s

24.700c

103.125c

102.750c

102.125c

96.750c

Oct. 13
'

81.86

83.91

Oct. 13

Average corporate

82.38

87.86

81.13

83.79

84.94
88.81

85.46

85.33

86.65

93.08

83.66

84.30

89.64

Oct. 13

78.90

78.78

80.32

82.65

Oct. 13

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds
:

82.77

Oct. 13

Utilities Group.
Industrials Group

86.24

82.65

84.17

83.91

4.34

4.87

4.88

.Oct. 13
.Oct. 13

.Oct. 13

4.39

4.42

4.58

4.50

4.10

4.75

4.76

4.66

4.20

4.89

MONEY

COMMODITY

INDEX—

Orders received

Production

4.84

4.44

5.29

5.16

4.95 |

4.97

4.85

4.58

4.97

4.96

4.87

4.63

4.71

4.66

4.46 |
4.23

.Oct. 13

(tons)

379.1

379.2

384.4

Oct.

502,306

550,083

110.81

110.45

—

end of period

331,401

336,246

374,535

1949

AVERAGE

100

Total

purchases

Shbrt
Total

Other

transactions

Total

—

initiated off the

sales

Other

Total
Total

1,706,390

1,958,910

332,410
27,300

54,400

37,200

322,820

207,020

404,740

377,220

244,220

560,651

504,630

542,103

815,470

135,220

76,120

93,090

148,410

742,595

781,065

624,808

983,360

877,815

857,185

717,898

1,131,770

Sept. 18
Sept. 18
Sept. 18
Sept. 18

Dollar

—

SECURITIES

dealers

EXCHANGE

(customers'

251,800

614,480

2,656,004

2,658,300

2,664,413
415,650

2,505,378

2,940,795

2,921,028

TOTAL ROUND-LOT STOCK SALES ON THE
EXCHANGE AND ROUND-LOT STOCK
OF MEMBERS

2.97

2.74

2.98

3.34

3.19

3.72

Tel.)

:—
—

ESTATE

—-——

_———--—

FORECLOSURES*

AND

—

LOAN

FARMERS

.DEPT.

June.—

Poultry

REAL
*

$81,101,534

1,395,209
$70,337,916

1,455,720

239

1,515,446

$74,056,085

1,095,506

1,217,254

19,943

10,294

;

1,075,563

1,206,960

$55,411,752

$55,862,299

$61,000,891

1,627,413
$74,081,521

255,420

256,150

314,340

256.150

314~340

733,870

557,180

554,830

ESTATE

AREAS

—As

HOME

—

July

480,830

507,660

844,630

11.623,260

DEPT.

12,756.640

11.480,520

12,130,920

18,848,000

.Oct.

productsProcessed foodsMeats

119.1

119.2

.Oct.

86.4

86.9

.Oct.

Farm

106.2

106.8

119.4
'

92.1

95.9

.Oct.

123.4

107.1

110.3

98.2

98.6
128.3

12.6.1

542,706

164.662

338.036

308.132

560,318

543,726

467,372

$3,099,806

,$2,974,206

$2,542,762

$1,468,600

$1,425,700

$1,415,600

1,248,400

1,369,400

1,049,100

$295,000,000

$288,000,000

288,296.022

290,395,605

'276.665.905

110,781

117^39

$288,412,006

$290,506,390

$276,783,745

414,806

415,874

427,362

$287,997,199

Mcnth

$220,090,515

$276,356,382

7,002,801

5,909,484

11,643,617

$288,412,006

S29Q.506.390

$276,783,745

.7,016.559

6,617,473

July

1_
:

DEBT

491,460

LIMITATION

30-(000's-omitted):

amount

that

time—*
-

public

may
:

outstanding
!

<•

debt

—

owned

tjie

——

Grand total,
under

face

outstanding..—^

amount

above

obligations,
authority..„L

issuable

STATES

GROSS* DEBT

—.—

DIREGY AND

GUARANTEED—1000's omitted):

figure.

^Includes 973,000 barrels

of foreign crude runs.
§Based on new annual capacity of
as of Jan. 1, 1959, as against Jan.
147,633,670 tons
1, 1958 basis of 140,742,570 tons. * tNumber
of orders not reported since
introduction of
Monthly Investment Plan. jPrime Western Zinc sold
on
delivered basis at centers where
freight from East St. Louis exceeds
one-half cent a pound.

Sept.

General
Net

124.950

IMPORTS

—1

gross

-'168,367

———-

STATUTORY

$986,186

120,239.

561,487

_1—:

AND

—

115,983

EXPORTS

$1,261,132

Total gross public debt
and guaranteed

Balance

UNITED

211

157,395

105.4

*128.4

165
1

248

366,786

L—

Obligations-not
—Treasury——

118.8

88.1
.

.Oct.

commodities other than farm and
foods.

L_:

public debt obli¬
gations not subject to debtlimitation—."—

Commodity Group—
commodities-

137.939

obligations
Deduct-—other- outstanding

$1,285,881

18.003,370
-

337

139

BANK

institutions—
*

Outstanding—-

-i—

248

314
-

omitted):

companies.—

banks!.—"

—

any

239

249

1——

lending

of Sept.

Total

Sept. 18
U.

LOAN

(000's

——:

Total, face

478

272

139

—

—-

STATES

GOVT.

136

503
252

314

—

associations.

trusts

savings

Imports
S.

232

251

———

companies

and

265

230

FINANCING IN NONFARM

Total

10.999,690

192

206

504

eggs

CENSUS
(000's omitted):

461,570

570.320

200

222

254

____

—

———-

and

"BUREAU

12.186,320

160

164

2—-J——I

UNITED

567,610

Sept. 18

281
"

567,610

255; 420

161

214

]

—

Miscellaneous

6,092

1,106,842

176

287

150

201

1,633,505

21,127

248
221

—_—

$72,896,620

•1,127,969

240

226
215

281

—

Pippt 18
Sept. 18

"Botal sales

3,507

214

————

Guaranteed
■

3,876

221

—

BOARD—Month
Savings and loan

STOCK

;

■

3,946

——__—

crops

products

.Mutual

1,629,386

TRANSACTIONS
(SHARES): -

—

sales

•

AGRICUL-

fresh

—

Banks

Sept. 18
shares

INDEX

—

INSUR¬

——

vegetables,

Meat animals

sales—

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 =
100):

•Revised

4.15

grains and hay—-I--—
grains

Exports

Round-lot purchases by dealers— Number of

All

3.57

Wool

4,084,760

Sept. 18
Sept. 18

sales

All

3.73

Livestock

Dairy

3,363,970

3,119,413

Sept. 18
Sept. 18

sales

Other

4.89
4.23

Tel.

Fruit

Round-lot sales by dealers—
Number of shares—Total sales

round-lot
Short Kaiei

4.59

3.89

^—;;

Potatoes

720,790

2,714,153

305,890
2,634,905

Sept. 18

—

3.54

4.77
4.00

Amer.

211

3,820,060

405,260

Sept. 18

value

Total

2.96

Sept.:

——i———————

SAVINGS

Individuals.

Customers' other sales

FOR ACCOUNT

3.13

YIELD

CORPORATION—Month

Insurance

Sept. 18
Sept. 18

Customers' short sales

Other

$31,171,000

————-—

(10)

Oil-bearing

COMMISSION

value

Short

•.

purchases)—t

shares—

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

Dollar

26,284

$31,914,000

-—,

sales

*31,248

$31,898,000

DEPT.

Tobacco

Sept. 18
.Sept. 18

sales

$49,777

(214)

Food

577,180

sales

EXCHANGE

21,466

•$52,138

30,812

—

528,180

348,150

floor—

sales

Number

$28,311

•21,911

—

AVERAGE

—

REAL

Cotton.

49,000

377,440

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS
ON N.
Y. STOCK
Odd-lot

•$30,227

21,889

.z——_

Commercial

'•

Sept. 18
Sept. 18
Sept. 18

purchases—

Other

Total

$590,000,000

$30,339

STOCKS—Month of

RECEIVED

Feed,

sales

Short

1,836,858

.Sept. 18

the

106,700,000

$635,900,000

———-——

(200)

Crops

2,375,810

initiated

523,380

123,900,000

$586,900,000

—

TUBE—1910-1914=100—As of Aug. 15:
All farm
products——_——L——
*.

1,852,430

round-lot transactions for account of members—

Total

2,390,110

285,360
1,673,550

purchases

Short

1,870,510

175,370
1,531,020

floor—

—

transactions

Total

1,805,520

242,740

1,594,118

sales

Other

1,762,943

Sept. 18
——Sept. 18
—Sept. 18

sales

Other

9,900,000

Sept. 18

Short
Total

120,600,000

———

NUMBER

——

purchases

50,700,000

128,600,000

—

(125)

FEDERAL

108.79

Sept. 18
.—.—-

sales

55,800,000

103,200,000

WEIGHTED

ANCE

PRICES

Sept. 18

—

sales

54,600,000

July 31 (000's omitted)—

Average

registered-

sales

Other

which

55,300,000

10,000,000

124,700,000

IN CIRCULATION—TREASURY

NONFARM

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
in

$246,800,000

51,900,000

9,900,000

July:

—

Insurance

ROUND-LOT

Transactions of specialists in stocks

$265,700,000

47,400,000

July (millions of dollars):

Banks. (15)

|
110.20

131,451

PAYMENTS TO
INSTITUTE OF LIFE

—

308,845

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

42,609

61,700

Railroads (25)
Utilities (not incl.

373,237

335,940

230,548

28,500

$247,100,000

—

100 COMMON

482,780

-0tt-

Percentage of activity

295,039

127,500

45.600

63,800

BENEFIT

,—

Industrials

532,006

————

363,714

36,078
46,453

$52,228

MOODY'S

387.6

Oct.

(tons)

:—
—

As of

ASSOCIATION:

(tons)

Unfilled orders

4.89

5.28
4.96

.Oct. 13

—

86,947

24.200

44,700

109,300

31—

I Sales

.Oct. 13

NATIONAL PAPERBOARD

Aug.

■■

Total

4.57
—

43,400

34.600

(bales)
(bales)

Nondurables

.Oct. 13

MOODY'S

33.100*

44,900

dividends

Month

.Oct. 13

Baa

Group
Group

78,447

Inventories—

3.46

4.79

Utilities

103,404

MANUFACTURERS' INVENTORIES AND SALES

92.64

4.29

Industrials

69,370

82,800

89.37

86.65

.Oct. 13

Aaa

Public

45,500

_—

Total

87.72

82.77

85.98

<•'

.Oct. 13

Group

Aug.

(bales)

Durables

Average corporate

Railroad

116,300

82.90

Oct. 13

Group

Public

147,634

331,385

70,100

(tons)

INSURANCE

Policy

304,504

97,400

100,300

87,800

—

Surrender vaiues

94.56

Oct. 13

67,800
«

149,300

98,600

Disability payments
Annuity payments

89.92

87.72

Oct. 13

Railroad

314,400

;——

INSURANCE—Month

89.55

85,737

684,992
17,541,000

265,500

—

Matured endowments
Oct. 13

.'
*

PROD¬

31—

(tons)

Death benefits

AVERAGES:

92,728
547,988

17,501,000

'—__—

POLICYHOLDERS

10.500c

Dct.

U. S. Government Bonds

Aug.

(tons)

Shipped
LIFE

1,523,38T\
*6,849,599

7,5*70,216

16,332,000

-w—-—

(tons)

Produced

12.000c
*

Oct.

(tons)

(tonsj

Stocks

11.800c

Dct.

DAILY

Oct.

PRICES

Stocks

26.675c

Oct.
—

*644,301

•

108.992

Hulls—

26.125c

690,449

l,li)S,507

7,636,193

Linters—

30.550c

Oct.

at
at

711,609
838,344

Meal—

Produced

Oct.

'-V

Aug. 31

(tons)

Shipped
——-

2,549
''

COMMERCE—Month of

mills

(tons)

Shipped

6.196c

2,728

3,373
3,927

■

(tons)

and

Stocks

271

QUOTATIONS)i

(primary pig. 99.5% )
(New York) at

BOND

274

Cake

SEED

4,272

Aug. 29--—:

COTTON

Seed—

Stocks

Oct.

(delivered) at
(East St. Louis) at

Zinc

AND

9.849

3,807

465,440

Produced

refinery at
refinery at

Export

———Oct.

.'
.

Domestic
Lead

Cotton

145

PRICES:

(per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)

METAL PRICES (E. & M. J.
Electrolytic copper—

SEED

UCTS—DEPT.

Crushed

13,086,000

Oct.

Finished steel

Lead

COTTON

8,249

10,807.
*

4.243

—-—

2,061

9,204

2,740

__——.—

Aug.
29——
spindles active

Received

BRADSTREET, INC.—
IRON

Stocks

8.197

2,282

3,878

10,700,000

14.567

9,183

10,861

—-

99,300,000

33,074

9,330

'———

—

loans————

$42,923
'-v

9.314

month of August—
:
consuming establishments as of Aug. 29—
public storage as of Aug. 29—:
——•—
Linters—Consumed month of August.—

125,193,000

INSTITUTE:

(COMMERCIAL AND

15,780

2,323

—•

payment

August:..
Oct.

\36,449

Consumed

$353,104,000

FAILURES

loans

AND
LINTERS—DEPARTMENT
COMMERCE—RUNNING BALES:

Cotton

100

;
——1—
loans—,——--

COTTON

MINES):

goods——:

Noninstalment credit —I

SALES INDEX—FEDERAL RESERVE

SYSTEM—1947-49
EDISON

$47,256

37,049

Charge accounts —————'i-i-——-

99,600,000

(tons)
Pennsylvania anthracite (tons)
DEPARTMENT

consumer

Service credit

141,900,000

$806,600

16,082

677,625

$241,500,000

$47,910

--—J-J-'-.,

572,512

$1,821,100

credit

31 r *
"
/'«"• ■;"*<
credit————————

544,089'

—Oct.

BUREAU

SERIES—Esti¬

intermediate term

503,531

and lignite

$852,900

of Aug.

587,079

Ago

RE¬

521,662

Oct.

State and municipal

FEDERAL

572,502

Oct..
:

(000's

528,977

Oct.

construction

Federal
COAL

DEPT.

July

SYSTEM—REVISED

Personal

construction

THE

Repairs and modernization

Single

construction

Instalment; credit

NEWS-RECORD:

Private

Year

Month

OUTSTANDING—BOARD

short and

Total consumer
;

ENGINEERING

—

of that dates;

———-

CREDIT

in millions

RAILROADS:

CONSTRUCTION

are as

Automobile

freight loaded (number of cars)
Oct.
Revenue freight received from connections (no. of cars)—Oct.

Month

—

GOVERNORS

mated

172,582,000

Revenue

Total

REPORTED

CORPORATIONS—U.

SERVE

6,709,000

Oct.

AMERICAN

26,563,000

1,954,000

5,825,000

Oct.
Oct.

(bbls.) at

COMMERCE

7,507,000

28,078,000

in transit, in pipe line
(bbls.) at
Oct,

(bbls.)

Kerosene (bbls.) at
Distillate fuel oil (bbls.)

ENGINEERING

2,003,000

1,932,000
12,673,000

(bbls.)

Stocks at refineries, bulk terminals,
Finished and unfinished gasoline

CIVIL

356,000

12,635,000

Oct.

"362,000

28,544,000
2,100,000

Oct.

output

ASSOCIATION

§365,000

CASH DIVIDENDS—PUBLICLY

CONSUMER

Kerosene

Residual fuel oil

74.2

Gasoline

12.6

omitted)

(bbls.

either for the

are

Month

Ago

*12.8

Oct.
average

of quotations,

cases

Latest

INSTITUTE:

condensate output—daily average

Residual fuel oil output

Ago

Thursday, October 15, 1959

first column

Year

.—Oct. 17

tons)

each)
to stills—daily

runs

•

Month

Week

or,

production and other figures'tf or th4

cover

Dates shown

that date,

§12.9

Oct. 17
/

month ended

Week

•

INSTITUTE:

month available.

3.
j.
funds balance—.....

debt

Computed annual*

:
—

rate

:—

•.

$28.'->.9T.447- $283,888,917
:—:

3.137 %

3.072%

" 5.098,831

$271,684,908
2.577%

Volume

190

Number 5890

The Commercial and Financial Chronicle

(1623)

Steel Strike's Effect Now

Railroad Securities

Becoming Apparent
Purchasing agent's

steel

finds

survey

supplies to where it

immediate months ahead.
orders

new

affects

(since April, 1958) and

sard

are

report fewer

unemployment (since early

1957) than those who report increases.

far

bile

Business

Survey Committee, in

monthly

the

National

surveys.

this

Association

month's

This

report.

hausted.

and

tell

fewer

orders

new

than

those

the first

Gross
down

implement,

result

of both

The

items.

Commodity
Since
Such

time."

prices

However,

this

jumped

the

month
39%

have

from

of this overall

slight

localities

where

prices

bought the item.

ity

the

last

time

the

and

buyer

production requirements, let alone build

up any

district

lines.

Even

tle

traffic

rails.

would

the

rests

The

carrier

has

sufficient

ment to handle current traffic

quirements.

traffic

moving

the

imposition

with

estimated

10%

some

(Special to The Financial Chronicle)

CHICAGO,

re¬

(Special to The Financial Chronicle)

its

CHICAGO, 111.—Bernard I. Miller
has become connected with West¬
heimer

for

require

equipment

financing

time.

some

000

and

current

liabilities

which

placed

at
of

source

cash

could

are

year

$1,700,000.

Another
from

The Board of Directors of Central
and South West

meeting held
declared

has

mon

which
an

been

Internal

Examiner

ap¬

dend of

the

income

for

the

Stock. This dividend is pay¬

Revenue

able November 30, 1959, to stock¬

which

holders of record October 23, 1959.

and

LBBOY J. ScHEUERMAN

first

months amounted to $1.24

compared with 51 cents

eight
share

due

over

large
This

Secretary

Central and South West
Corporation

year

The Gulf is faced with higher

ago.

•

Wilmington, Delaware

the balance of the year
elimination of once

the

amortization

tax

REGULAR

deferrals.

reduce earnings; how¬
ever, it is estimated that for the
full
year
net
income
will
be
around the $2.32 earned in 1958.
may

QUARTERLY)
DIVIDEND
t

The Board of Directors has

With F. I. du Pont Co.

declared this day

(Special to The Financial Chronicle)

SAN

FRANCISCO,

COMMON STOCK DIVIDEND NO. 101

Calif.—Frank

This is

Senram has joined the staff of
Francis I.
du Pont
& Co.,
317

Montgomery Street.

PER

25t

Reynolds Adds

Payable

(Special to The Financial Chronicle)

Milton C.

Politics and the Business Man
tiveness

Supplies
Capital Expenditures.

Days

60 Days

90 Day;

to 1 Year

54
''

August:

„

Production

Materials..

MRO

Supplies
Capital Expenditures..

far too

"With

Changes

items, shapes, and products in
all. This was expected, of
course, and unless some settlement is made soon, there will be
many more by next month, according to reporting members.
are

many

steel

supply this month to list them

the tip

side are;

Copper, lead, steel (?),

zinc, cardboard cartons, some paper products,
rubber, glycerin, linseed oil, and plasticizers.

scrap,

raw

fasteners.

sugar,

natural

On the down side are: Power transformers and capacitors.
addition, local situations have reflected some price concessions,
but there are not enough in any one item to be
statistically

short

supply

and
steel products,
naphthalene.
•

are:
_

Some

phthalic

copper

items,

anhydride,

many

maleic

types of steel

anhydride,

and

Secretary

THE COLUMBIA

GAS

maximum effec¬

business

men

who

enter

stay out.
such

political
of securing

SYSTEM, INC.

purposes

Reynolds

Tobacco

in mind they

Makers of

cigarettes

are

Chairman.

Prince

Albert, George Washington
Carter Hall

smoking tobacco

QUARTERLY DIVIDEND
A quarterly

are

what is

not

altogether clear in

our

own

mind

meant

by "entering the political arena/'
citizens and as such have always
played their part in our political life. We are cer¬
tain that they have always been as public spirited
and as free from the special pleading of the pro¬
fessional lobbyist as any of the others—far more so,
we

the

men

are

should say, than some who have been active in

political

arena

for

many years

past.

Company

Camel, Winston, Salem t Cavalier

narrow

11. J.

the

going to end up alienating the general public, creat¬
ing suspicion of the business community and doing
a
clumsy job of obtaining even their narrow ob¬
jectives." — Paul M. Butler, Democratic National

Business

recorded.

r
.

Specific Commodity
There

to achieve

arena
with only the narrow purpose
higher tariffs for their industry, special tax conces¬
sions for their corporations, or special competitive
advantage for their products would be better ad-

vised to

20,1959

Baidridge

"Those

MRO

men are

politics, they must work toward this
goal as citizens rather than as spokesmen for or
representatives of just one segment of our total
economy." — Senator Thruston B. Morton, Repub¬

6 Months
30

November 16,1959

of business October

Co., 2150 Franklin Street.

lican National Chairman.

to holders of record at close

regulai quarterly

dividend of

October 8, 1959

"If business

Hand

to Mouth

Materials.

per

Corporation's Com¬

)

October 7, 1959,

The $2 annual dividend appears
be well protected by earnings.

Net

Corporation at its

regular quarterly divi¬

forty-five cents (45c)

might be received in 1960.
to

NOTICES

Dividend

million

South

Common Stock

approximately

proved

134

..;

DIVIDEND

tax refund claim of

Bureau

Company,

were

$20,827,000. Net working capital
was
$18,866,000. The company has
about
$14
million
invested
in
short term government securities.
Cash is expected to be further
strengthened by depreciation
charges of $4,600,000 which is sub¬
stantially more than equipment
maturities

and

Salle Street.

Finances
continue
strong. On
August 31 of this year, cash and
cash equivalents totaled $22,978,-

East

not

con¬

railroad

With Westheimer Co.

that

The

of the

Associates,

with

Wacker Drive,

OAKLAND, Calif —Henry S. Chin
is now connected with Reynolds

efficiency

Mc-

affiliated

now

present car fleet
which would indicate that it will

publicly owned
transportation fa¬

excellent

111.—Kieran

use of

company's equipment
in

Co.,

equip¬

shape.
Its
right-of-way is in good condition.

up very well and that they have had to extend
commitments on some items in order to maintain

inventory balances.

Production

the

cilities.

holding

September:

high in comparison

with most roads and it is believed

that

private barge lines. The carrier's
hope to meet this competi¬

Per Cent Reporting

short

Marshall

not

Stott

Building.

forward

proper

Intyre

With Marshall Assoc.

which

the

over

indicate

Jefferson

earlier high

-'-Some buyers indicate that they are placing steel orders fur¬
ther ahead than they normally would so that they will be "on
the books."
Others say that, aside from the steel situation, busitheir

long strike
barge lines, lit¬

main

charges for

the

Buying Policy

ness

but

high¬

the

rerouted

was

This

most

change, which means that this many are holding
levels of employment. Few are willing to
state that they are greatly concerned about the "lull" in the gen¬
erally improving employment picture.
'
./
report

their

participated

movement,

with

tinues

63%

coming

it will join in this

are

of the commercial

previous month;. In September, we\
find only 18% reporting their employment better than in August,
with 1.9% saying their situation is worse. The bright spot is that
at

not

piggyback

ad¬

111.—Kenneth

with Lamson Bros. &

now

of this year as compared
74,152
in the comparable
period. The bad car order
ratio on Sept. 1
stood at 6.3%,
1958

taxes

has

road

and maintained

than

that

plants will locate in

general effects of the steel strike are showing up more
and more in the employment situation.
Again, this month, for the
third straight time, the relationship of better,, to same, to
worse,
favorable

was

movement. The major prob¬
lem is competition from the barge

The

less

this,

way

even

capac¬

Despite

trend to offset traffic lost to

inventory.;

producing

anticipated

new

the

tion

Employment

located

cars.

service

The

turning point in the 1957-1958
liquidation program, have! so many reported lower
stocks on hand. .Similarly, only 16%
say^heiR. inventories are
higher than in August, a drop of 6%..-Predictions are that it
will be at least 90 days after the settlement of .the steel strike

traffic

indications

be available to meet

and

months.

production will

have

36,000

the

1958, two months after the

current

ditional

Inventories

sufficient steel

industries

There have been
selective rate adjustments on this
traffic which has helped volume

inventory

before

has

attract

total volume is lower than it

There has been another drop in the quantity of purchased materials on hand. A significant 37% report that their inventories
in September are lower than they were in August.
Not since

July,

from

which

Gulf

able

months

three years ago.

in'"August,

/V'

been

traffic

timated

trend, it is probably impor¬
some specific items and some

there $re
are lower than

situation

and

tant to acknowledge that

traffic.

along
its .line. This greater industriali¬
zation in the past three years has
attracted new plants with an es¬

exactly the
same number as reported in this category last March.
Also, those
showing prices the same dropped from 76% in August to 59% in
September. Only 2% say prices are any lower than last month.
In view

with

low-rated

plants

number

23%

faced

been

this

new

trending down¬

been

transportation.
principally from
barge lines which continue to

sought

notable "marking
of those reporting

seen

was

adjustment
in
competition from

forms

meet

Prices

be characterized

months,

has

meet

has

re¬

March, there has been -relatively little price movement.

there has been could

ward. For the last three

ago

activity in the paper

territory,

road
to

This

sult, while there is no mad scamble to extend purchase commitments,\lthere is some indication that purchasing executives are
buying a little further ahead in order to protect their needed
material Requirements.

year

traffic

downward

some

move
a

its

and

One factor

maintain

the increased

mills

tight inventory

some

that

the

packing

industries.

helped to

Inventories

meat

other

which

other

and the unavailability of

the

PEORIA,

■ with

traffic

some

who

early 1957,

again down

from

stoppages in the farm

were

Spurred by the artificially created shortages of strike ma¬
terials, commodity prices have inched upward in the last month.
program

2.6%

by the rise in gross tonfreight train-hour. This
efficiency measuring factor aver¬
aged 75,242
in
the first eight

there

rates

control

in August were

revenues

only

shown

miles per

Gulf could handle

reductions than those who report gains.

are

(Special to The Financial Chronicle)

1958
month, which was a good
showing in view of the fact that,
in addition
to
the
steel
strike,

has taken its toll in employment.
more of our members report

course,

time since

order

new

The steel strike, of

For
*

majority

nation's railroads. This has

through

report increases. ; Only 27% received more new orders, while 31%
had decreases. In reporting production data, 28%
say it is greater
than last month, 53% the same, and 19% less.

V-,:

accomplished mainly
a good control of expenses
and a
high degree of operating
efficiency.

Purchasing Agents makes

members

our

able

the steel

This

been

figures both reflect the result of
the steel strike. This
month, for the first .time since April, 1958,
more

have

strike

Production

Ohio

the impact of
better than
the

of the

Com¬

means that, even with full steel
production, there
period of reduced output of fabricated steel items. Fur¬
ther, many^ of our members believe that the prospects for good
business in the immediate months ahead are tied
directly to an
adequate and steady supply of steel.
•.

will be

earnings of the Gulf, Mo¬

withstand

While many companies are just now at the
point where pro¬
duction schedules are being curtailed,
pipe lines have been ex*

Joins Lamson Bros.

Gulf, Mobile & Ohio
.

;The steel strike has lasted too
long to enable us to avoid serious
dislocations in production—so say Purchasing Executives of the
mittee

STOCKTON, Calif. — Michael, J.
Sanguinetti is now with Walston
& Co., Inc., 312 East Weber Ave.

business prospects in the

members

Staff

(Special to The Financial Chronicle)

have passed the critical point

now

Walston Adds

per
on

dividend

share has been

of 55c

declared

the Common Stock of the

Company, payable December
5, 1959 to stockholders of
ord

the

rec¬

of business

November 13, 1959.

W.J.CONRAD,
Secretary
Winston-Salem, N. C
October 8, 1959

•

„

Thursday, October 15, 1959-j

the

BUSINESS BUZZ

spirit

Jefferson

and

The

White

vision

and

Lincoln lives.

Jackson

Washington and You

House

the

was

President

George
Washington who never lived to

BEHIND-THE-SCENES INTERPRETATIONS

CHRISTMAS CLUB

see

SOUPNOODIE

NATION'S CAPITAL

FROM THE

)

•,

The Com mercial and Financial Chronicle

(1624)

dreamed

SAVINGS BANK

built

who

and

would

never

become

the

world's most significant address.

World's

C. —The

ad¬

significant

most,

for

Pennsylvania Ave.,
in
the
Nation's
Capital, is a
busy place these early autumn
days despite the fact that Con¬
gress is in
adjournment until
January.

Eisenhower's

A carnival of color has come

the

over

comprising

acres

address,

world ' renowned

this
the

White

leaves

The

House.

from the many

species of trees,
some
of them red and yellow,
are
falling and dancing about
the turf and among the flowers.
Why
Ave.

Pennsylvania

1600

important?

the

executive address of the 50 States
of

States,

United

the

degree is regarded

and

the "capi¬

tal" of the other Nations of the

World

Free

000

their

and

600,000,-

much

has

history

and

been

many momen¬
tous decisions have been made
the White

have

will

that books

House

others

and

written

been

be penned in the decades
generations to come.

and

Outwardly
these
golden
days, the White House
appears quiet, particularly when

autumn

Eisenhower

President

his

away.

bee-hive of
it is due

Inwardly it is a
activity, and part
to

applies

the

population

United

States

World

Nations

the

and

Free

increasing

all

be taking

importance
too

many

years

greater

Not

time.

the

all

No.

ago.

the

signifi¬

most

the

address

cause

globe

be¬

sions made there affecting every

phase

international politics,

finance

and

the* Seven

commerce

across

Seas.

Street

and

No.

Downing
longer hold the sig¬
that they did before

nificance

days

ago

another mile¬

stone for

the

recorded.

President Eisenhower

White House

was

observed his 69th birthday. No
other President 69 years of age
has occupied the White House,
have

been

Presi¬

dential families to occupy it,
starting with John and Abigail
Adams in November, 1800.
President

was

The

William

Harrison

died

Henry
the

White

House at the age of 68 exactly
one
month after becoming tha
Chief Executive.
First "Lame

Duck" President
and

moved

House

Mrs.

into

the

winter

cold

day in January, 1953, it marked
the

first

time

that

than

former Army Gen¬
eral and his .wife had occupied
the

property.

President

Ulysses^ S. Grant,
Civil

hower

elected
rolled

a hero of the
President
Eisen¬

War.
was

nominated
because of his

Europe

and

fame

during

World War II.
The
duck"
United

first
to

so-called

"lame-

President

States,

General

hower

the

Eisen¬

still has 15 months to
in the White House, and thev

Chemists

other hand has failed

ises

down

cut

and

spending

ington 9, D. C.—$1.25.

hold

you

meetings,

your

dances

narties?"

Insti¬
486
Madison Ave., New York, N. Y.
Nation

and
~

tute

prom¬

bring

big

controlled

Capitol Hill readily acknowl¬
edge that this was a serious

story of the White House
tremendous
story of the

swirl of political activity

great

functions

social

and

159

for

reached

White

With

Touch

the

should

House

far

ment

the wheels of govern¬

concerned,

are

President

the

ever

instance

wher¬

located.

nuclear

two

These

Calif., recently the Army Signal

miniatures

Corps
(as
is their function)
provided a series of direct lines

from the White House in Wash¬

knees almost

ington to the little White House
in California. There is always a

saving

direct

Pennsylvania

Eisenhower

golfing

between

Pennsylvania Ave. and the
that

cart
to

uses

the

moment's

President

him

transport
Thus, he

course.

over

the

be reached

can

notice

the

President

the

Georgia for

goes

quail hunt
and
golf, a similar setup is
always available. Sometimes a
special courier plane is used to
carry special documents for the
to

Nearly all government em¬
ployees work regular 40-hours
a

week.

completion

But

the

not

thou¬

invade

homeland.

Japanese

the

inva¬

The

sion would have been extremely

American

Elizabeth

the

was

White

put

motion

into

some * of

his

far-reaching New Deal meas¬
ures
during the depression
years
as
well
as
subsequent
years.

It was
White

the back porch

House

dent Roosevelt in

delivered

his

that

fourth

Presi¬

term

exception

unattractive

so-called

annexes

Wing

West

where

in¬

the

Lincoln

who

President
the

stitute

the

head

Unversity

the

Another
lingering

struck

down

second

left
his
go to

House

term

Buffalo for

1901

exposition when

shot down by an assassin.

was

When

Washington was a vil¬
surrounded bv fields on

lage,
both

sides

River,

and

trails

over

Dolly

the

flee

only
the

Potomac

with

marked

Madison

fore

the

cow

community,

was

forced

matter of hours be¬

British

fire

set

the

original White House.
A year from next

33rd

President
move

Ave.

the

office

United

35th

his

family

1600 Pennsylvania

Whomever

new

January the

and

is, he will

President

States.

chapters at

He
a

Business

will

York
New

some
sues

historic

them

Mark

Brothers,
New

but

has

mistakes.

acted

$5.59.
President

United

Eisenhower's

Department
tion

6888

State

1959—
Publica¬

Superintendent of

—

Documents, U. S.* Government
Printing Office, Washington 25,
D. C. (paper) 20 cents.
Primer of Lamps and"Lighting
Willard Allphin

—

Chilton Co.,
56th and Chestnut Streets, Phil¬
adelphia 39, Pa.—$10.

place where

—

Attention Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head

Ouf New York

Carl Marks
FOREIGN SECURITIES

biggest

States

European

Trip, August-September

Mills

Pub. Serv.

the

political
blunder of all, was the flying
of armed and bayoneted para¬
troopers to Little Rock, Ark.,
to quell an unfortunate school
situation involving integration
that

Street,
(cloth)

16,

upon

office. Most
wise decisions,
his

—■

Harper &

East 33rd
N. Y.

York

—-

the

questions and is¬

made

His

Advertising

Wiseman

write

White

taking

were

—

Re¬

New

45, N. Y. (paper) 70 cents.

Anatomy

Southeastern
has

Street"

"The

Madden—Federal

Official Films

President

States

since

(paper).

Bank of New York,

Memorable Decisions
34th

York

Graduate School' of
Administration, New

Side

Carl

New

Finance,

York, N. Y.
Money
serve

McKinley had
during

White

Treasury—C. J. Devine In¬

with

was

the

War

state.

of
was

tragic

the

Civil

assassin's bullet.

I. Mc-

—-

pool 7, England—21s.

Times

ship

Garfield

Management in Britain

Money Market and the Position of

time

East

tremendous

White House has had

name

at the White House of President

will

the

and

16,

$4.95.

Givering, D. Matthews and W,
H. Scott—Liverpool University
Press, 123 Grove Street, Liver¬

Tragic

the

New

(cloth)

but

President

January, 1945,

augural address.
With

Premier

Khrushchev

tragedies,
period of the

Benjamin

—

York

Street,

Winston

Union, to

its

House

Franklin

President

Sir

and

But the

tragic

Investor

Harper & Brothers, 49 East 33rd

Nikita
Soviet

Seen

request.

for instance, have
Britain's
Queen

few.

—

Graham—2nd Revised Edition—

and

Churchill,
Mrs.

Gray

Intelligent

ing the President. Their hours
are
long, and irregular.

The

and

Wage

Industrial Relations
Section, California institute',
Technology, Pasadena, Calif,
(paper) $1, quantity prices on
D.

House staff members, surround¬

United

Systematic

—

Insurance,

President and Mrs.

entertained

lives.

Roosevelt and his brain trusters

Wing

sign.

Americans

hundreds

perhaps

of the

golf course.
When

ing

where

immediately, thus

lives

walls.

figures in the world have been

sands, because plans were Hear¬

direct

there

brought

now,

the

costly

communication

golf

stopping.

store

already weakened Japan to her

Burning
Tree
in
suburban

at
Club

Washington,
1600

wher¬

and

President

Country
radio

between

President

the

When
is

service

ticker

bombs,

compared to what

White

Hiroshima,

Japan, and the second one on
Nagasaki, Japan, on Aug. 6 and
Aug. 9, 1945, respectively.

Springs,

Palm

atomic

first

the

drop

bomb in warfare

Actually the "White House,"

historic.

most

the

at the White House that
decided that our Air Force

was

trans¬

of the most famous

Eisenhower,

Mr. Eisenhower's prede¬
cessor, Harry S. Truman, had to
one

sandstone

some

entertained.

Ave.,

thick

Here

the

day,

massive white house

Pennsylvania

1600

House is

decisions

memorable

the

make

years.

Always

look at it.

mistake any way you

responsibility.

business

each

with

shoulder

The

amount

the White House
part
of
the

Congress, but
must

without

handled

have

could

acted

Democratic

Life:

Salary Administration—Robert

deep bitterness. Some of Mr.
Eisenhower's closest friends on

be blamed partially

can

the

Federal

beyond

spending

symposium

—

Guide

about

balanced budgets. Of course the
income

Social ^ Contribu¬
Insurance to the

Life

tions

Federal

Association, Inc., 1825
Wash¬

Economic ' and

often

—

Connecticut Ave., N., W.,

net

the

(cloth) $9.

Facts Book

edition—Manufacturing

Fourth

"How

Eisenhower

President

Eisenhower

years

Inc., Homewood, 111.

bringing

toward

—

Chemical Industry

about peace.

South

President

White

strive

Langer, and Robert
Richard D. Irwin,

F. Vandell

promised in the last two Presi¬
dential
campaigns
that
they
would

ard

President Eisen¬
Republican leaders

and

Hunt, Charles M. Williams,
T. S. Porterfield, Leon¬

James

Nevertheless,
hower

old

years

October 14.

When

was

White

Problems in Finance—Pear¬

son

Democrats.
Per¬
haps these momentous actions
would
have
happened
under
Republican Administrations had
Republicans been in the White

ever

were so badly
crippled
by the ravages of war.

there

House

Case

War

occupied

1600

and

Korean

the

and

the

when

Britain

•

in¬

War I, World

World

War

World War II when London and

A few

1600

The United States became

For

London, the Capital of the
United
Kingdom
of
Great
Britain, of course is truly one
of the great cities of the world,
but

months

work

and

live

volved

deci¬

momentous

views.]

own

Pennsylvania Aye. in Washing¬
ton is to bring about an easing
of world tensions. Certainly it
is a laudable ambition.

4he time, 1600 Pennsylvania Ave.
appears to

"Chronicle's"

Businessman's

ambition

great

remaining

the

will

the

secret that President

during

re*

Eisenhower.

Mr.

two four-year terms

than

holding

from

President

absence.

With

ing

House. No one knows, of course.

people.

recorded

prohibit¬

stitutional amendment

1600

dress,

intended

fleet the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with

to be busy months
series of reasons. The con¬

going

are

column

[This

}WASHINGTON,

20 BROAD STREET

TEL: HANOVER 2-0050

•

NEW

& Co. Inc.

telephone number.

CAnal 6-3840

SPECIALISTS
YORK 5, N. Y.

LESSER S CO.

TELETYPE NY 1-971

Investment

10 Post Office

Securities

Square, Boston 9, Mass,

Marshals

Telephone
HUbbard

2-1990

Teletype
BS

Full text of Commercial and Financial Chronicle : October 15, 1959, Vol. 190, No. 5890

FRASER