Full text of Commercial and Financial Chronicle : October 23, 1958, Vol. 188, No. 5788, Section 1

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ESTABLISHED 1839

In 2 Sections

Section 1!

—

Reg. U. S. Pat. Office

188

Volume

Number 5788

New York

7, N. Y., Thursday, October

2^1958

flUsiNESS

Price 50 Cents

1?$'N'SlS4Tl0i\i

EDITORIAL

Wj,,uiV

it
Twice within recent weeks the Federal Reserve

authorities

have

shown

about

concern

what

and

substantially

were

last week

now

they

years.

Mr. Otto

proudly sums up the gas industry's phenomenal
progress as well as the less agreeable things which he
believes urgently needs saying at this time. The latter,
he points out, concerns: (1) precariousness of the price
situation of gas at the well head and how it affects the
entire industry from production, transportation and dis¬
tribution; (2) need for research and development of gas
appliances in order to meet acute competition as higher
gas cost trend continues; and (3) unified industry-wide
action acting on a common denominator. Sums up the
problem as one stemming from Congressional inaction
on a new Natural Gas
Bill, chaos created by Memphis
Decision now awaiting Supreme Court saview, and pace
of producing even better gas appRances.

The first

Step taken evidently did not have the effect that

hoped for, and the last

was

outburst of
is

greeted with

was

trading and sharply higher prices. It

hardly strange that

if the Reserve

were

might be able to have
It is not for

some wag

to raise

remarked that

margins to 110%

real bull market.

whether the hopes for
the
future
which evidently lead speculators
(which in the present instance are often more
like investors) to buy stocks which by any his¬
torical measure are already very high are or are
not well-founded. In point of fact the Federal
Reserve authorities profess to pass no such judg¬
ment upon the basis for strength in the stock
market. Rather they tell us that they want to
prevent undue use of credit in the stock market
-—a
practice which by any of the ordinary stand¬
ards had not in any event developed. It would
appear that buyers of equity securities have in
hand adequate cash for their purposes, and if
they choose to use it in this way it is hardly the
function of any public body to say them nay.
-

say

have

Continued

DEALERS
in

the present equity ratio

protection offered long-term holders by heavy depre¬

ciation

policy. Based on recent bond market experience,
emphasizes importance of timing to avoid conflict with
other big issues and of keeping capital structure in a

sound condition to obtain capital at a reasonable cost.
Opposes giving F.P.C. jurisdiction over financing, and
opines gas industry should be able to obtain equity
funds on reasonable terms today.

wish to belittle the gas

From

Wall

Street's

point of view, the gas industry,
$1,200,000,000 of secu¬

which will probably issue at least

much

meeting

these

challenges.

and transmission and/or retail distri¬

present

bution of gas. I will not discuss explo¬

ration

them, the hurdles
we have now got to get over — the
problems we now have to solve—
are three, and every one of them is
Briefly,

see

Atlantic

Convention,

City,

tell you

concentrate

much more

Wall Streeter.

the

financial

the investor.

But, before I do so, permit me to

appropriate

National

can

aspects of the transmission and gas
distribution companies as seen by

governmental
Robert W. Otto
price regulation; second, the problem
of
increasingly acute competition,
and third, the problem of achieving effective unity and
common purpose at all levels of the gas industry.
Right
Continued on page 22
♦An address by Mr. Otto before the American Gas Association's
1958

will

and urgent
in its need for solution. These are,
first, the problem of the increasing
cost of natural gas and related ques¬
of

drilling, for Texans and

about them than can

critical in its importance

tions

and

Louisianans

N. J., Oct.

TODAY: Section Two of

13, 1958.

today's issue covers

the 25th Annual Convention of the National Security Traders
the Broadmoor Hotel, Colorado Springs, Colo.

point out what our industry thinks
it does for the gas industry. We do

AtDert

Continued
* An

•

Municipal

STATE

AND

ef
and
Association at

MUNICIPAL

Lester, Ryons & Co.
So. Hope

623
•'

HAnover 2-3700

•—

Public Housing
-

California

Members New

BONDS
.

Associate Member

Bonds and Notes

BROKERS

•

OF NEW YORK

Inquiries Invited on Southern

Burnham and Company

30 BROAD ST.,

MEMBERS NEW

VORK ANO AMERICAN STOCK

15 BROAD STREET, NEW
CABUE:

YORK S.N. Y.

California Securities

014-1400

Bond Dept.

Net

Distributor

T.L.Watson &Co.
1832

ESTABLISHED

Teletype: NY 1-708

Active

Dealers,

Markets

Maintained
Brokers

Banks and

Stock

Exchange

25 BROAD

STREET

NEW YORK 4,

N. Y.

goaUucetf company

CANADIAN

Economy

PoMmon Securities

ANO TORONTO

Goodbody ft

PERTH AMBOY

NEW YORK

MUNICIPAL BOND
DEPARTMENT

Grporatioti

Co.

MEMBERS NEW YORK STOCK EXCHANGE
•

Expanding

DEPARTMENT

DIRECT WIRES TO II OUT REAL

US BROADWAY

for California's

♦

BRIDGEPORT

Municipal Bonds

BONDS A STOCKS

Rights
Teletype NY 1-2270

BANK

Correspondent—Pershing A Co.

CANADIAN

Royal Bank of Canada

New York Stock Exchange

DALLAS

New York

Offerings Wanted

Members

Chase Manhattan

EXCMANOES

•

Dealer

•

THE

TRUSTY" NY 1-22M

COBURNMAM

American

DEPARTMENT

del Mar,

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

BANK
ENT
DEPARTMENT

Exchange

Offices in Claremont, Corona

DEALERS

.ft..

American Stock Exchange
BOND

UNDERWRITERS

Agency

York Stock Exchange

THE FIRST NATIONAL CITY RANK

CORN EXCHANGE

first

State, Municipal

Street, Los Angeles 17,

Members Pacific Coast

•

page

and

CHEMICAL

Underwriter

Gordon before the American Gas Association
City, N. J., Oct. 14, 1958.

address by Mr.

Convention, Atlantic

*•

BOND

Gordon

Securities
telephone:

best to obtain

permanent capital
from widespread sources at the lowest cost consistent
with their best interests and subject to the rules, reguour

U. S. Government,
State and

and

portunities it presents, ranging from
speculations in drilling and explora¬
tion to investments in the production

NSTA CONVENTION ISSUE

pictorially

The

rities in each of the next two years,
is almost unique in the capital op¬

on page

electric companies, and approves

patting ourselves on the back for
past achievements isn't going to help

in what is

upgrading of bonds; impress Mr. Gordon.

Wall Street partner offers suggestions as to how gas
firms can sell senior securities oa a par with those of

is, however, that the big chal¬
lenges are still ahead of us. And

thoughtful observer is, however, likely to
going on in the stock market cer¬
tain implications which to him far transcend
ordinary considerations in importance. Professor
Burns, formerly chief of the President's Council
1

market

industry's accom¬
It has been phenomenal, and we all
right to be proud of it. The
no

distributing companies' higher per
earnings-trend compared to electric companies, and

fact

The

see

have

Gas transmission and
-

plishments to date.

Some Implications

Partner, Kidder, Peabody & Co., New York City

Chairman of the Board, Laclede Gas Co., St. Louis, Mo.

again raised to the

highest levels since early postwar

By ALBERT H. GORDON*

Retiring President, American Gas Association

increased in August,

were

Foz the Gas Industry

By ROBERT W. OTTO*

happening in the stock market. Margin require¬
ments

Copy

Bsttkaf Auttttea
40

Exchange Place, New York 5,N. Y.

NATIONAL

savings

ASSOCIATION

I NORTH LA SALLE ST

CHICAGO

Teletype NY 1 -702-3

WHitehall 4-8141

380 tlontfMMiy St,

Sao Fraadsca. CaHI.

The Commercial and Financial Chronicle

(1666)

For Banks,

The

Brokers, Dealers only

35 years

Over

different group of experts
field from all sections of the country
participate and give their reasons for favoring a particular security.

Large Trading Department

HENRY J. LOW

geared for service
4

Manager, Institutional Research Dept.
Glide, Winmill & Co., New York City

Nationwide Private Wire

Members, New York Stock Exchange
New York City

System

Fischer

Ready to

when

serve you

you

Porter

Fischer

the

1937,

manufacture

of industrial

cision

CHICAGO

con-

New

four

" *
below

Stock

BROADWAY, NEW YORK 5

120

Division,

data

measure,

relate

the

v
V.

builder of

these

Among

products.

redesigned and improved
of the
Flowrator,
the

variable

;

area

Tlow^

in jet engine test facilities and
missile fuel metering
A digital
level gauge recorder for measu
mg river
.

■

heights was designed for

systems,
cor¬

4-1

tTTrt n

v* /T

O 7 T rod

■

(3) Water and Waste Division,

STOCK and BOND HIUSES

MID-YEAR
JUST
A

1,700

1958

OFF

THE

book

page

listings

covering
Canadian cities.

EDITION

all

containing

9,500

States

and

Listings are arranged
geographically
and
alphabetically, - and
•re
comprehensively detailed:
' I.-*'
Firm

name

ducted

Stock

District

Mem¬

Post

Office

Numbers
of

Business

Class

Handled

Partners

Department

Phone

Association

Including

Character

Securities

Names
!

and

Officers.

Names

Heads

Numbers—Private

Phone

ALPHABETICAL

ROSTER

•howing city in which they
another

valuable

are

treatment

all

firms

located

feature.

has

n?»

recently

manufacturing

During the past nine years sales
have increased almost five-fold

In addition Alloy

Company,

Steel Casting

ENTER

—

YOUR ORDER

and

wholly-owned

sub¬

heat-resistant

stainless

steel

castings, appears well on the way
toward becoming a major earn-

The outlook for
this phase of the company's activities is understood to be extremely
promising.
ings contributor.

International

...

operations

have

been

growing steadily in recent
years
and manufacturing plants
are
owned in Canada, England,
and

$14

TODAY

HUBERT D. SEiBERT & GO.
*S Park Place

New York 7, N. Y.
REctor 2-9570

earnings

the>

five

uses

stantly opened

stock since

tjie

improving

cineerin««taff

accelerated

Velopment
dividend

■

Fischer

and a'

P
*

Portpr

nanciai and working

No-

sound ±i.

capital posi-'

tion with current assets of $8,603,-

Pa., maintains modern
research and product development
laboratories,
where
an
experienced staff of some 200 engineers

000 on April 30, 1958, including
cash of $508,000, compared with
$1,494,000
current
liabilities,
Book value stood at $9.50 at that

& Investment

;
Bankers

Broadway,N.Y.6COrtiandt 7-5680

DETREX

con¬

CHEMICAL

Porter

today's

•

; INDUSTRIES

ac-

i BOUGHT

instru-

—

SOLD

co'n-

majot industrial

with!a

cerns

earnings

definite

jncrease indicated for the second
Half

the' fiscal*' year

'ending

MORELAND & CO.
Members

further improvement anticipated thereafter
April

30,

and

1959,

Midwest

for
the
1960-1961
fiscal
years. "At around 15, 38% below
last year's high of 24, the common
shares, ^ traded ; in' the Over-theCounter Market^iappear reasonably priced andN are: regarded as
an u interesting / speculation
for
good long-term, capital'.gains
$2.50

•

V-

LAWRENCE S. VLAUN

Auchincloss, Parker '& Redpath,
New York

Office

Branch

DE 75

—

supply

can

names

and

complete

your

hundreds
of

ambitious

mailing

quirements.
1959

Although the stock of GeorgiaPacific has had a sharp rise from
its low, the issue still represent an
attractive speculative vehicle for

N. Y. 16: Dunhill

those investors

ing

list

re¬

now

Georgia-Pacific QArporaiion

Bay City, Mich. T

Let's Set Rich Together!

FREE: -Reserve

see

DETROIT 26, MICH.

WOodward 3-3855

thousands

Other Exchanges

■

•.

- -

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

City

Members N. Y. Stock Exchange

Exchange

1051 Penobscot Building: ?•
,

w
•

Stpck
Stock

Detroit

net income should approach $2 to

your

copy

our

Catalog.

dunnill

INT'L LIST

CO., INC. V

BIdg., 444 4th Ave,

MU 6-3700 • TWX—NY 1-3135

CHICAGO

DE 2-0580 •

Washington St.

TWX—CG 3402

growth
as
their prime
i

estment

n v

consideration.

Georgia-Pa¬
cific,

the

tion's

gaci

^
n

producer
.

&
5

na¬

leading

plywood,. an
i mp o r.t an t
manufacturer
of

-California

redwood lum¬
ber

and

cialties

Lawrence S. Vlaun
.

spe¬

and

relativelv

N. Q. B.

new

t eiauyeiy new

entrant into the-pulp, paper, and
stoclc paperboard fields, is prone to the

plant at

Hatboro,

111

•<**•

Tokyo, Japan

;
Brokers

•.*••<

Co., Ltd.

mentation and automation pfcn-

..for

hi^Y|e

toward

trend

1955." An

anticinated f in

Member
Fi.pl

Afiiliate

research and • de-

program,
iq

Company

York, Inc. >

Yamaichi Securities

for

excellent position'to util-

earnings

of New

highly regaI:4ed management and
the outstanding research and en-

*n 1956 and 1957 and 10; cents spL^
far this year.
At the£ August^
meeting the five cents quarterly;
payment was omitted m orderYo-.
conserve

Securities

In view of the

cejits ^pqr'?
plus 2% in stock was paid^
dividend

Yischer & -fOrter is m

Mexico.

FISCHER& PORTER'S

being

are

up.

f",
The company has made smajlf
cash - dividend
disburesments on^,.
common

;

in the 'fi'lastf
yea^nfew outlets f<)r many>

annual

write

Since most .of;

company^,products

industrial'

than anticipated
production
expenses,
higher costs and delays in deliv-

the

expected

are

years.

write-offs from larger

yeais*'

Call

—

leading
rapidly

•

information

current

con-

automation systems

earnings of about $1.20 .per share j
on sales of around $18,000,000. for;
tubes, glass pipe and fittings, elec- fiscal 1959 witlv potentiaUearning.,,
tronic
components
and
certain power approaching $2 to $2.50 per? j!
proprietary laboratory items.
share for the 196O-1.901 ^fiscaL '

Holland, West Germany, Australia
Bound in Durable

limp fabrikoid

higher

new

the

c€ierated

Fischer & Rprter
organized a fibreu.iya.ui^cu
u-a:

eries incurred on certain orders
chlorinator for the swimming pool filled by the relatively new Data
industry. This radically designed Reduction and Automation Divichlorinator, made from materials sion. However most of these uncompletely resistant to corrosion profitable sales have been comfrom
chlorine,
is available at pleted and a rapid upturn in net
about half the cost of some older income is expected for the present
standard models
and safer and fiscal year, ending April 30, 1959.
easier to operate and maintain.
Management estimates anticipate ■

Connec¬

tions—Wire Systems—Teletype Numbers—
Correspondents — Clearance Arrangements.
An

sewage

marketing

sidiary, which produces high alloy

(Including N.A.S.D.)

Address,

General

con¬

established^

date

Exchange

berships

Street,

under which business is

and

instrumentation

this

for
in

(4)
Glass Products Division,
supplier of precision-bore glass

PRESS

United

and

For

growing fields of control instru¬
ments,' data
processing
equip¬
ment and

water

STOCKS

per annum.

few months ago.

from $3,291,000 for the fiscal year
simultaneuosly
and ended April 30, 1950 to $15,228,converting them to digital form 000 for fiscal 1958. Earnings rose
for computer input. A newly de¬ from
$61,000 in fiscalV^1950 to
veloped digital demand meter was $487,000. or $1.62 per ^hare for
recently introduced for record¬ the fiscal year ended April 30,
ing of watthour demand, and siz- 1957, but declined sharply ,ylast>
able orders have been received year to $146,000 or only.31 cents,
from various electric power com- per share. Last year's disappoint- •
panies.
ing .results were due to heavy

systems,

common

jze ^g "know_how" in

glass i

per

also

large initial order was received a

peratures

stock' is

total of 14,000 shares

the Department of Interior and a,ig

other
industries, are capable of reading
hundreds of pressures and tern-

'B'
The class "13"
vertible into

tranststonzq^ analqg-to- beeri^developedKonly

aircraft and application for

MORE ARTICLES IN SECTION TWO

to checking inflation, we

■'

■

■ •. •
(
'
■
,
of today's issue is devoted to the recently-con¬
Traders

i
TWO

■

SECTION

saw

J.F.Reilly&Co.,Inc.

cluded 25th Annual Convention 6f the National Security

Members Salt Lake

extremely sharp reversal in 'j Association at Colorado Sjrings, Colo.
The material therein
r industrial
activity which [lasted
.includes the
following articles on the pages indicated:
until the Federal Reserve BoardNew Types of Municipal Financing—John N. Mitchell____
7
and the government itself started
to pump more money into the -•Exploring Space via Manmade Satellites "
economic system. /
■-/
J ; .—Dr. Lee A. DuBridge
8
•
'It was difficult, to convince
Investment Opportunities in Missile Industry
many business men and investors :
10
L —Robert'H: Kenmore
in November, 1936—as I tried to
-,

DIgby

Teletype: JCY 1160

Direct wires To Denver St

—

imports

conformists

Salt

cyclical

ant

what

we were near an

peak.

Factors Underlying the Economic Outlook

Mostj people *

—Frederick H. Mueller.

ident Roosevelt was right in" say-!£
ing: "Business did not just happen.
to improve—we planned it that

are/told by the leaders of
their own political parties, scien4-tific "efforts /;to convince
people
/that a particular viewpoint is correct, regardless of its fundamental,
truth, are ^becoming increasingly
successful.
At the present time,
.

manipulators

political propaganda is being fo-

—William W. Amos

who

should

•,

Common & Preferred

Russia

L. ®. F. Glass Fibers

What They Demand-and Get

;

mis;

;

(Boxed)

—

.___

Atlas

Competitor to American Business Analyzed by

J. .Walter Leason

quite

operate

Fpsco, Inc.

Pacific UraNium*

Ling Electronics

;

"Right to Wreck,r (Boxed).

freely), suggested that we would
ifor the business .recovery,
and have adverse repercussions from
.who. should be, blamed for the these stimulants sooner or later' .
deficits and inflation psychology There is reason to suspect Jha(
.which has helped bring about the most .people are now accepting the
rise in security prices and busi-, presentAdministration's", claim;} ness activity.
If we take the time for bringing about a prompt re-/"
and trouble to look at the record, covery in business this year, alwe
will see that all of this ^is though few Teconomists seem to
likely to
change shortly after recognize the similarities in the
Nov. 4.
' '
;
basic political motivations with
cussed

—

Analysis of Life Insurance Company Stocks Today \

way," the very nature of the po-. j
litical moves taken to insure! the
business recovery (including tacit,
permission to the;-stock'market

Lake City

____

refused to admit that while Pres-

believe

;

do—that

4-4970

„

pie have been taught for years not
to think for themselves, but to be
and

City Stock Exctu

[/' 1 Exchange PL, Jersey City 1

something to which
Humphrey
Neil • has
recently
called attention: "emotional engiPeering.'"-Since the American peo-

;they

;

STATES GAS

least the following two years; but
also in view of the growing significance

President Roosevelt changed, his.-

it helps to de-

were;

Wall!

at 99

♦From Recovery to

'emphasis from encouraging biisi-:

because

measure, the

they

Liberty and Prosperity-r-Lddwig Von Mises_______

pansion • in productive capacity '
and business in general, and once

ihi-

-'■port-ant

50%

dumping 'em

♦'♦Future Unlimited" for the Gas Industry—C. S. Stackpole__

declinej'of

•

prices helped to encourage an'ex-

Day. '

:';/The election

which

..iiig "reached again for 14 years!'.

CongressionalWhile
Election

Score—A.; Wilfred May

Gras and Piped-in Profits—Ira U. Cobleigh;^__

'./months, with those highs not be-,, j [ ♦A Time for Greatness—Glenn W. Clarke.

,-j'e'c O''ft

•

2John M, Witbeck-^—

those

what. it

further" inV

Ay era ge in November of that year

from the

only

see

j_C©.ver-

1959—Anthony Gaubis^

show

still

can

obsoletes who's boss by" '

Requirements and Advice for'a Successful Bond Issue

JHH York "Times" Industrial/Stock/-

t i dates

period

chance to

You
r

terferenbe • fromthe^goVerhifient^v :"%"New -Measures of Productivity'for Manufacturing Industry
' The highs touched by /the New/':
—Allen W. Rucker

.the. calendar

•

could'do without any

,/is-vbecoming" •%
o n e

"business

wnat

—John C.Hall

-fiscal

■

Treasury Financing Problems and Preservation of the Dollar
Hon. Julian B. Baird_:^_„_X_x^i',_i,_x^iJ--"-_^_x,-rrl. ;7

;

It may be a little early to dis-. quent, open letter from
cuss the business and investment
Roosevelt to publisher Roy How-

jbutlook/for 1959,' but this is not; ard

THE DEFIANT ONES

Cover

;

Problem—J. W. McAfee_.__.J__

,
,

•

x___

♦The Threat of Government Operations: Our Common

be in medium

; '

Outlook for

i India's Current Box

•

Otto'

The

"one-way street," though ther:

•

Confronting: the Gas Industry

price level is probably unwarranted. He points out/

the market has

•

—Robert

♦Financing: Economies Today for the Gas Industry
—Albert H. Gordon

•"""r—without any

Page

1ED. NOTE: Articles carrying the symbol (♦>' deal with oat-

cnan^e m jcur-

market trends in next few weeks.

-rent stock

Articles and News

'!'

iniCur-

(1667)

get .credit

—

Investors League to Study Impact of Capital

Gains Tax.

Sewing Ccntora

•1

Report

...y.

Request

upon

Regular Features

(

'U,

;

M'l MH,'

;

—

Wrth'-this explanation of part of

[volves^aymg down the iinfavor:

able developments
•ing away

1959

while hammer-

at every favorable straw.

agementof
business^.coupled with
a
rising tempo of deficit spend-*

•ulants, and do not necessarily lead
to an upward spiral. 'You may-all
recall 4iow siinilar politically-in-

spired

encouragements
out

worked

prices
and -

rose

1936

spend

when

stock

throughout the

year,

think

particularly .following, 'a
in
April

and

subse-

Phila^elphig

Business

Outlook

for

Prices.»

Railroad

and" Stock'

Securities
-

!■__

Securities
Now

27,

--••

The Market

;——

\ ~~ *7"

Seaboard Life

44
,

—

—--—

Insurance "A"

W'M

Altamil

4
*

full recovery
late 1956*

for Mr. May's on-the-spot report
'/economic and political problems.
/ '-"'/?
-See

♦An

Continued

page

■

page

£fColumn not available this week.
'v

' published Twice Weekly

•

have

specialized in

•

Reg.

|f;

Epsco, Inc.

Company

matter Febru¬

-Reentered as second-class

25, 1948, at the post office at Nee
York, N. Y., under the Act of March 8,1879

♦

ary

U. S. Patent Office -

•

AIsco, Inc.

•

and
FINANCIAL CHRONICLE
Thw COMMERCIAL

For many years we

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^f. Industrial Production may be
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prompt

•

■

Los

" "

SyntexCorp.

Public Utility. Securities.——_—.

in that analysis, I stated:

•

«The

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address by Mr. Gaubis before the
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San Francisco

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The Commercial and Financial Chronicle

(1668)

India's Current BoxScore

sibility of getting a formal guar¬
anty .from the Indian Government
against expropriation (although a
possibly unreasonable demand
from a sovereign State) in con¬

By A. WILFRED MAY

^
survey

investment

ordinarily

providable

for

"investment"

Electric Output

Carloadings

State of Trade

the

and

him.

has

and

boost

$75

million,

the

million

$350

credit

tures

list™,-.™

one

via

another

further

aug¬

participation in
million

$650

pro¬

vided
by
next
Marc h.
This
largesse running the gamut from

Technical
nomic

Assistance

Aid

Eco¬

and

Programs

($412

mil¬

lion)
since
1952,
to
P.L.-480
Agricultural Commodities Agree¬
ment extensions

($584 million), to
Bank loans ($150

Export-Import

million),

exclusive

investment
and
U.

industry
S.

well

private

Indian

provided

commerce

the large

the

assistance

United

Nations

agencies.
The

far

States

that

contribution

other

any

country

or
international agency
with Russia only recently coming

through with

loan—not grant—

$30 million. Incidentally, a "Gal¬
lup Poll" just conducted by the
Indian Institute of Public Opinion
here

nevertheless

reveals

over

quarter of the respondents in the
youthful (20-29 years) and lower
income groups as believing that
the most aid to India is being ex¬
tended

by the Soviets.

Trouble

Our

"client"

Two Fronts

indeed

real economic trouble

home

and

external

now

both the

fronts—with,

of course, considerable

between
into

the

cite

dovetailing
Before going

two.

detailed

trouble, bound
cessive

external

planners

trative

prices."

underesti¬

overestimated

inefficiencies.

reasons

for

with the

the
suc¬

Five-Year
of its

some

tions.

The

ances

which

Plans, let us
major manifesta¬

foreign exchange bal¬
stood at

$1.3 billion
in early 1956 fell
during the fol¬
lowing 12 months to $900 million,
and are now down to $380 million
—with a
gold reserve of $242
,

million.

Also

To "take

direction

and

independent

non-conforming

stands

several individual regional

specifically

—as

the

cost

raised

care

of.

actual

billion

through

rupees

scheduled

obligations already in¬
"general ex¬

favorable

intent"

for
early
authentication having been
given
by the above-mentioned creditor

nations.

While

hoped

that

resulting exports will provide

realized
may

that

well

critical

the

funds for repaying the
borrowed, it must be

necessary

principal

week.

The

government's
program
ther

heavy
investment
involved will entail, fur¬
strains

severe

Already there

omy.

evidenced

the

rises

the

prices.

cost

living for both wholesale and
sumer

con¬

such

constitute

repayments
permanent

stringency in the exchange

area.

Planning Gone Awry
India's difficulty basically
directly results from gross

are

supply with the public
showing distinct expansion.

Heavy

Along

Industry
with

Food

State's

the

and

expan¬

d y

n's

w a s

prompted by
Nikita Khru-

a re

J. Walter

upon

Leason

you

the

peaceful

field of trade.
We will

States.
States

The

ballistic
of

win

United

intercontinental

missile

peaceful

the

over

threat

is not the

but

the

production.

findings

are

star-

Soviet

alu¬

Exports

five years. Coal production of the
Soviet Union already exceeds that
of

production

alone,

was

7,000,000

tremendous popu¬

problem, immediately and
inescapably impressing a visitor
on

his

briefest

traversal

the

United
a

over

within

the

billion.

times

States

the

could

and

approaching

Russia's

are

this

three

U. S. market

sources

timber

largest

preeminent.

Labor

constitutes

another

field

Iron and steel production of the
the first half

for the first time.

day's

one

work

(in

quality of output

both the part
employer and the employee,
on

Outlook

for the

ital from this
source; although the
return to Washington of Mr. B. K.
Nehru as the economic fix-it man

help the situation somewhat,
particularly if there shall be fur¬
ther tax concessions.
Meanwhile,
the actual destructive experience
of foreign investors stands.
The
may

overall

bad.

climate

Germans

investment

report

that

they

have

simply had to pull out per¬
manently because of increasing
bureaucratization. Worry over fur¬

create

seems

major uncertainty. Again,

the U. S. Administration's

impos¬

;

factory employ?-

••

num¬

;777'7

'-■'77-.. 7'

;

►

'-'b'

•

> ? ;'c

• ~

of Oct. 4 remained above

corresponding week of 1957, however, the de¬

partment noted.

•

;

•'

Initial claims by unemployed workers rose in the week ending

Oct.

11, the report stated. Seasonal layoffs in some industries,
.temporary layoffs in a large automobile supplier .plant in Ohio
and

the availability to insured workers of a new quarter's wage
credits accounted for most of the 4.000 rise to 281,900 new
claims,

The
the
as

steel

market

comeback is hearing

critical point, with

possibility that supplies of sheet and strip could become tight

drum in

some areas

during the next month, according to "The
Age," national metalworking weekly. A lot depends on hovv
new cars go over with the public.
Should the auto com¬
panies step up their buying, flat-rolled products would be harder
to come by, it added.
Iron

well the

mid western

mill

actually

was

relieved

when

General

Motors Corp. asked that steel deliveries be held up for two weeks
due

ule

few

strikes

scattered

over

local

issues."

General Motors reportedly will be 200,000 units behind sched¬
at

the

end

ears

made

be
on

October.
up.

Sooner or later, this lost output will
Many General Motors dealers had only a

hand before the strikes

began.

The

metalworking weekly noted that the sheet and strip mar¬
ket is no so tight country-wise asr it is in certain areas of the
Midwest, but it added that steel users reach farther out when
mills close to home lengthen delivery promises.
Eventually all
mills are

affected.

Hot and cold-rolled bars also

products
sheet

arc

are

better demand.

Tubular

and galvanized sheet and aluminized
about the hottest products from a demand standpoint.

are

picking

area

mills

are

running two to four weeks behind on gal¬

impor¬

steel users already are ordering
tighter market next year, Onelarge company has placed plate orders for delivery through next
March. .Other users are quietly adding to their inventories as
their own business improves, "The Iron Age" reported.
Signs

even

are

farther ahead

growing that

some

hedge against

manganese,

,y*+.y-

Russia is

The metalworking magazine

beginning to cast

emphasized that

real shortage

supply of any steel product is unlikely, that is at least for this
year.
It noted that demand for structural shapes, linepipe, oil
country goods and plate still leaves something to be desired.

;

retical million barrels of oil daily

Meanwhile, "The Iron Age" observed that Russia apparently
intends to give its people more of the liner things of life. It said
that Red experts who recently toured steel plants in this country
were especially interested in equipment turning out products used
in making consumer goods and may want to buy such equipment

might

here.

shadow

try

over

the

huge oil indus¬

its production climbs and,

according to Mr. Leason,
be

exported

theo¬

within

few

years.

fear,

subject clouded by suspicion,
even

shrouded

production.

mystery.

This

accomplishes

110-

service

showing not only the dangers

to certain U. S. and Canadian in¬

ing preponderance of strength

the side of the Free World.

should

potential
economics

discussions
with

facts

help

and
on

all

future

sounder

replacing

volume

the

Communist

place
a

misunderstandings.
this

explain

effect

myths

basis

and

prove

re¬

warding to those in business, in¬
vestment and

education.

automotive

industry

last week with General Motors

"Ward's Automotive

Reports" estimated last week's car out¬

put at about 45,003 units contrasted to 34,334 the week before and
72,180 in the corresponding week last year.

Bargaining agreements over local issues have been settled at
only two General Motors assembly plants, "Ward's" declared, but
one, the main Oldsmobile factory in Lansing, nor
Wil¬

neither

mington, Del.'s Buick-Oldsmobile-Pontiac site, is expected to turn
out a car until this week.
There has been no General Motors
production since Oct. 2.

A reading of

should

the

crippled by strikes, United States passenger car production
made only a minor gain on the strength of 1959 model schedule
buildups by four other manufacturers.
-

still

dustries but also the overwhelm¬

hate, and it is certainly
in

page book

...

saying that the Russians also
want to improve their methods of mining, sintering and rolling
of steel and step up
oil country operations by boosting tube
This trade weekly concluded by

The Russian economic offensive

Dismal prospects for the private
foreign investor seem to render
improbable receipt of needed cap¬

;;

The 1,765,200 insured unemployed
the 1,189,600 of the

tin, chrome and asbestos, the So¬

the

Foreign Investor

viet Union wields considerable in¬

offering the most severe
ficulty. It seems that it takes four
to

In such

tant basic materials

basic dif¬ fluence.

men

•/

Chicago

of 1958 exceeded that of the U. S.

vanized sheet delivery promises.

must

realized

1.7v."'7*7
activity such

world.

the

planning and control is
definitely on the way, but effec¬
tively only for the distant future.

yi'

re¬

Communist bloc in

the

country-side, the food exigencies
Family

this

—

may

heavy industry, there is a grave
and growing shortage of
food, at
least over the short-term.
During

With the

Labor.

have to

affect

compensation insurance
dropped 48.500 in the week ending Oct. 4 for the 12th straight
weekly decline, according to the United States Department of

are

become
increase
from less than $20 million a year

the past year the short-fall in food

-•

The current report on the labor situation shows that the
of workers drawing
unemployment

ber

the

Competition

1957

— - •

that

line

ment, personal income and Gross National Product, housipg starts
retail sales, with the exception of automobile, continue
to

field

ling.

amount

latest release

point upward.

Some

its

also noted

and

relentless in this and it will prove
the superiority of our system."

critical.

lation

leave the assemblv

reported

Other barometers of business

war.

sion of steel investment and other

tons.

will

"Wede-:

ment

of 1958

car

shchev's state-

minum, for example,

Versus

ther Nehru-socialization

mis¬

And the figures for

the money

units above the prior week.

for 1953.'

the

major
industry. Mr.

/•'

af¬
the

Monday of this week, "Steel" mnga-\
that steelmaking operations will reach 85% -oft*
capacity before the year-end. The ingot rate the past week adT
vanced by 2.5 points to 74% of
capacity, setting a new high record
zine

every

econ¬

inflation,

econ-.

and

long-term objectivesof

10,169

Economist of

omy

has

and

increased

the three-millionth

(Some

Russia's

been cut to 46 Va billion—but real¬
istic estimates still leave a
gap in
ine
internal
resources
of
from

car

ago, cur¬
rent auto assemblies are below the
half-way mark. However, car
volume the past week,
according to "Ward's Automotive Reports,"

chew,

can

Exchange from
Gregory & Sons, 72 Wall Street,
New York City, has performed a
pioneer job of
a n a 1 y z i
ng

now

economies

Stock

was

and

a
Development Loan, West and to coddling because
Germany $40 million, Canada $17 Communist threat.

billion,

curred;

of the

will be needed from abroad from
March 1959-1961 to
pay for bills

the

States

area

$100 million, U. S. A. $75 million

Japan $10 million).
Furthermore, another $650 million

Walter Leason,

originally estimated

;
-

Business Failures

strikes in the automotive
industry adversely
output last week and as a consequence, delayed
placing of steel orders. Compared with this time a year

Competitor

taxation.
The Plan's

Auto Production

Industry

the

the deeply imbedded caste system,
the
absence
of
appreciation of

pression

and

meeting under the aegis of World
Bank President Eugene Black
(by
U.K. $108
million, World Bank

and other

than it

hold in its mouth.

de¬

liabilities
coming due by next contrast to a "recovery" country
March, $350 millions was provided like Germany). This is partly due
for
in
September's Washington to lack of training, the climate,

million

even

cisively destructive to effective
planning results have been recur¬
ring conflicts between the central

three to four billion rupees.

United

exceeds

bitten off

not

partly due to adminis¬

revenues,

will

mented

and

the

mated expenses and

quarter billion
dollars.

internal

Overall,

Wilfred May

three-

and

directions

originally envisaged, and increases

September, to
total

incurred

Scattered

fected

To American Business

ar¬

ranged
in
Washington in
a

in¬

Russia

its

Trade

over¬

further reasons, tied up
oped giant. The Government it¬ with her political and economic
self explains its
budgetary and ideology, will he detailed in a
•
v
exchange troubles, in its report subsequent article.) .1
"Reappraisal of the Second FiveYear Plan" issued September, 1958,
as
by the Government of India Plan¬
ning Commission, as "owing to
unavoidable additional expendi¬

just been

another

set—goals

volving rapid industrialization of
a
grossly and vastly underdevel¬

grants since
Independence

Retail

Commodity Price Index

Vk
immediate

the

But

were

Food Price Index

investor, at least creates
highly discouraging impression

riding difficulties besetting India's
sound
development
decisively

that

Steel Production

American

capital.

targets

and

loans

Thursday, October 23, 1958

BOMBAY,. INDIA—How is the calculations concerning her Sec¬
Five-Year
Plan,' begun in stem from crucial planning trou¬
big U. S. stake in India — in the ond
economic and political areas — 1956—in gross underestimation of ble, bound up in the setting of
actually paying off? Uncle Sam's the foreign exchange and domes¬ goals unrealistic for an under¬
tic resources needed to attain the developed nation, which has thus
financial
in

nection with the insurance routine

reveals crucial external and internal eco¬
nomic difficulties besetting India, where U. S. has such a huge
and currently growing stake. Cites problems resulting from
planning miscalculations; as well as long-term weaknesses
in areas of food, population, labor
and foreign private
On-the-spot

....

car

Elsewhere, relatively serene labor atmospheres are enabling
Only one dispute caused an assem¬

makers to hike schedules.

bly halt.

This was at Plymouth's Detroit plant,

picketed since

Cnnt.rmipd

na a p.

Volume

Number 5788

188

The Commercial and Financial Chronicle

...

(1669)

long-term

-an

dends

holders. \ Stock
2o%

divi¬

has

mon

unbroken

dividend

record

paid in both

were

running all the way back
1904—54/years without a miss.

1949 and

1950; 20% in 1952; 33Vs% to
in 1958. In addi-: A fine dependable performer for
cash dividend? have risen serene long-term holding.

AaadaHTpsWHt

in 1955 and 20%

Piped-Ia Profits

tion,

from 80 cents

By DR. IRA U. COBLEIGII

regular rate
traded

Enterprise Economist

; Oil has seemed

tremote
major fuel source, but; might 'produce large immediate
natural gas has been setting a hot income and
provide funds for ex-

■•-.;/■

pace
the

energy

sources

tensive further exploration. That
"locked in goodness" may be just

among

great for coffee in

1 North

.Amer-

ica. We've

■

na tura 1

for

had~;

gas!

,gas, nadian

tin, but not

now

policy

•

■

enlightened Ca-to

appears

be.

around

..^

^. emerging—one that will permit,^^long timeout indue course,! a lot more gas to;
be exported to the U. S. than the

'■<j
years,

con-

near-

well use,

went up in the
air
as
a
billion
Ira

m00se

lines hadnt been built to

simply

where it could be used.

take

built

900

ran

Texas to Chicago and started
gas
deliveries m the early 30 s. Since

Rne

have

terns

been

which

railroads

now

whose

runs

New

from

York;

^*2? ^aS w f? a
West Texas to the

the

Rio

Paso

California

Tennessee Gas Transmission

sea-

East

Texas

into

New-

Supplies 27% of Energy
Ten years ago natural gas

vided

16.6%

in the U. S.

Today it accounts for

away lrom its own blood brother,
fuel oil. Gas sales were four tril-

111

hhon

1946

(equal to

barrels

oil);

1957, gas sales were
cubic feet (equivalent

for

^10.6^trillion

hon.barrels of crude

own

new

inde-

line

from

oil

liquid

hyrocarbon
of

tomers

Gas

supplied

contracts

added

to 1.7 mil-

this

under

with

winter).

long-term

Mississippi

Fuel Co. and Laclede is

River
able

now

35,000 to handle its peak load/winter
Much lever¬ demands quite effectively by vir¬
age is provided for the 19,998,418; tue
of
extensive
underground
common

by $645,365,000 in

storage facilities

long-term debt and $93,895,000 par
amount

in-several series of

ferred stocks

pre-,

lying ahead./ If

you

LG)

should

report this year its
highest earnings in history above
against indicated dividend

gas

doubt, suggest Tennes¬

Gas.

;// ,'/;///•

■

cents.

there

holders.

Natural

Gas

eminent integrated company own-5

Michigan Consolidated Gas
Company and Milwaukee Gas
Company. These distributing com¬
panies serve a population of over
in Detroit, Mich., Mil¬
waukee, Wis., and environs. To
supply natural gas to these dis¬
tributors, American Natural Gas
operates two pipelines,

which through a transmission line

network

-3,000 utiles, can

over*

billiort^c.f. of natural
year
between the/" Texas

propel 242
gas

Coast

and t Louisiana

fields

and

Gulf.

Michigan

and

Wisconsin.

Since most of its pipe¬

line

are

Volved.

sales

its

made

subsidiaries,

//';" /■'/,'■/'

■

share¬

V;''"//

own

Ameri¬

companies, producers like
Hugoton and Republic; distribu¬
tors such

Gas,

Central

and

Peoples

Coke; but

those

For

Electric

Gas,

and

Light

our space was too short.

seeking growth type

securities, with

record of rising

earnings and dividends, the

nat¬

ural gas

lush

field

industry is, indeed,

supply,
trend,

and

price

upward

surging demand abetted

by many

including

u&es

new

petrochemicals

for

plastics,

sulphur extracted from
Successful
is

brightened by rising visible

and

sour

gas.

investing in natural

can

pipeline

Natural Gas is

recent

biggest
development
this year has been the projection
and
financing of The Houston
Corporation, organized to serve
peninsular Florida, the last major
population area in the U. S. with-

pipeline

out natural

service.

gas

Corporation

rate

increases

companies

by many
their cus¬

Emanuel

common

listed

the

its

4,863,246 shares trade currently

around

year

Per share

62.

should

rise

net

this

$4.25

above

Deeljen Co.

To Admit New Partner

tomers).
ANG

new

believe'd to be

the

New York Stock Exchange where

In the United States, the

Mar¬

Inc.,

Liberty

St.,

York

New

City. M r,>/;;'
resigned

Tyus
from

Col-,

the

lege Fund in
Sept em be r;/
1957

orders

to attend Bos-

Arthur F.

ber

the

Public

tions

ferred
The

from

$3.91

ample

1957),

New

York

ted

partnership

Deetjen

Incidentally, ANG

com¬

Upon' him

the

of the company which
organized in July, 1955, and is
the first and only investment firm
in

the

Street

Wall

owned and managed

Huge Potential

annual

ing and experience. While at Fisk
University, he was an Instructor
Business

Alumni

A pioneer in
the field of Sales Promotion and

Public

Relations, he will be re¬
by many as the first
Negro National Sales Representa¬
tive
for
the
Rumford
Baking
Powder Company, a position he
membered

held from 1932 to 1940.

Supply

ah
*
-!
All of which points up the question-of gas supply.: Where are
*

Corp. and the J. Walter
Thompson Advertising Agency of
New York City. While at Boston
University last year, he did Sur¬
vey Research for the Gallup and
Robinson Research organization of

Princeton, N. J.

Forms In v. Sees. Co.

Ex¬

Stock

SUMMIT, N. J.—Carl T. Graves

Co.,

120

Emanuel,
Broadway,

conducting
from

of the

New York Stock Exchange.

investment busi¬

offices

trillions needed for the next
ade coming from.. Known U.
around

230

the

moment

trillion

offer around

can

S.
are

Canada

trillion

present known proven reserves;
bpt .has
m

^potentials, which have

been

estimated

above

300 trillion.

tential is what the

try is drawing
more

experts

And

that

po¬

pipeline indus¬

bead

on.

That's

come.

structed

Investment

Securities

pany.

owner-

,;§§

vs/s.

year

great hue and
dians

ago,
cry

there

was

Cana-

among

that their underground gas

supply should be reserved for
Canada's

future

argument

made

drilling
known
the

reserves

gas

had

that

sense.

Oil

bulging

the

of natural gas,

begin

But

use.

little

daily

was

couldn't

from

place
to

go.

used

yet
It
up

locally in West Canada; pipelines
had not been built;
the volume available for use

the .Rio

Grande

yaiiey in Texas, through Baton
Rouge, La., and runing to Cutler,
Florida, south of Miami. An initial
daily average pipeline delivery to

•1,

Florida markets of about 282,000

II!

m.c.f. is expected,

Investors

offered

were

dated

prospectus

Xu?n

and five shares of
a

(by

8/19/58

new

common

subscription price

Enthusiasm

these

for

18 Vz

these

new

for

common

Twenty-eight

$150.

yearly budget

securities

stock.

$65 millions
is

for

Canadian

generations yet unborn.
it

seemed

economic

Equally,

nonsense

for education—over
Progress in education

key to the Commonwealth's astonish¬

ing economic advancement.

Good schools and colleges feature
Rico's

number of

thorities

now ex¬

ceeding 600,000 or 84% of Puerto Rico's

securities interest you,

Puerto

land -of
opportunity for sound investment. Your
bank or security dealer can give you full
rapid development

information

pupils, with enrollment

school-age population.

Major emphasis is on primary and high
facilities for the largest possible

school

and

the tax-free bonds of the

Commonwealth and its

which

municipalities,

au¬

public corporations—all of

provide reasonable income yields.

GOVERNMENT DEVELOPMENT

all, and the only, official informa-

asset

goes

a year.

total

all means get the prospectus
referred to above which contains
tion

trust fund

cent of Puerto Rico's

and

per

yyy'i

to take it away

or
sale was so great that it was
ridiculous to sequester it as a sort

H
M

stock

282,000) and carried the units to a
present market price of about
$172; and an indicated separate
valuation of 82 for the 5% bonds

bring

greater soundness to investments

resulted in swift oversubscription
of public offering (totalling $54,-

and

schools

from

foregoing information
t""1,
c0"sist!,n,® °f
debentures due 8/1/68

$100 In 5%
for

Spring¬

recent

than

Canada, with its
sparse population
(17,000,000),
-mild
nnccU,!,IV,i„
could possibly use for di-oH— to
decades
gas

382

field Avenue under the firm

fro,£ f^ldfs il\ Louisiana proand
0f

about

this interesting enter-

Tennessee

Gas

Transmission

Company is one of the major natural gas companies and its cornmon

stock

RICO

has

done

well

all

BANK

FOR PUERTO

Fiscal Agent

prise.

;

Food

Texas. To that end, and with
ceecis

•

serving

Consultant for Standard Brands

financing, about
the>1^7 miles of pipeline (12 to 24
dec-: inches in diameter) are to be con-

reserves

Other activities included

vol-

■

and

Administration

Secretary.

Houston

consolidates

area

by Negros.

Mr. Tyus, a Trustee of Fisk Uni¬
versity and an alumnus of that
institution, brings to Special Mar¬
kets a wide background of train¬

petroleum).

total

made by

was

ship Gf 80% of Jacksonville Gas
Company, and the present manuume
of, sales in heating oil
yhasj, faPtiiring gas systems in a number
remained almost unchanged,
with;:bf Sizeable Florida cities, includroafor sales expansions in heating
|ng Orlando, Daytona Beach, and
fuels ygoing almost r entirely
to Miami, and aims to serve
them, in
natural gas.
J.
due course, by delivery of natural
1946

Since

1958.

June,

announcement was

Philip M. Jenkins, President and

Nov. 1 will be admit¬

support for current dividend rate New York City, members
of $2.60.

Randall L. Tyus

Rela¬

was con-

ness

(up

the de¬

gree of- lyiqster;,,
of Science" i«-!

Schlobohm, Jr., mem¬

change,
to

ton University /

main, unaffected by the glorious reality!
Memphis Decision (which, if up¬
held, may require large refunds

single

Special

kets,

gas

pipe-dream—it has proved

regulatory bodies inNobody knows for sure,
going to get what, but it
does
seem
predictable
that, a
major volume of the natural gas

Companies

tor of Sales of

Founder

3,700,000

and

19^ and

16,000

We'd have liked to discuss many

ing

owns

about

Other Companies

Aii Integrated Company
American

Stock sells at

are

Wj10's

Domestic

College Fund for 14 years, has
become Vice-President and Direc¬

Louis.;/: where

near

Laclede common (NYSE symbol

to pick out just one natural,
$1.35
stock to own, many analysts of 90

were

American

Some

Randall L. Tyus, who was Field
for
the
United
Negro

Director

distributing

and

in
and
around
the
city of St.
Louis; Mo. Over 70% of sales are
residential, including a steadily
rising household heating business
(22,000 residential heating cus¬

barrel daily capacity.

around the various Canadian

say,

sells

yield about 4.35%.

and

Panhandle

pro¬

27%; and in the postwar years
has been grabbing a lot of markets

crude

California.
this competition
is animated and there are dozens
Gf
political
angles
centering
Needless

of energy consumed

lion,cubic feet

south-

Tennessee; and
Electric, which

Surging Sixties will
be of Canadian origin.

Consumption

Manitoba,

eastern

line

Stock

York
now

livering natural gas in a service
area, with a 1,500,000 population,

was

burned in the

run-

England.
'/

Emerson,
tG

build

1,300
mile
Alberta deep into

coast, and a trans-Rocky line to
Oregon and Washington; and
lrom

pendent

.e from

rung

would

easf

1840

Cali-

and

Midwestern Gas Transmission

from

the

Oregon

mileage
enor-. pacific
Gas and
octopuses
such
as
wants to build its

line

Grande

(particularly to

fornia); Tennessee Gas Transmissi0n> which, through its subsidiCo.,

sys-

approach

Transcontinental,
mam

Corp.

total

steel

mous

invested

serve

ary>

then, hundreds of millions of dollars

Pipe-

Washington,

from

New

year

reserves; and 500 billion c.f.
natural gas; refineries of

see

controlled Pacific Northwest

The first

miles

this

Waiting List of Customers

of Canadian gas are El
Paso Natural Gas Co., through its

Another big city gas
company
of interest is Laclede Gas
Co., de¬

huge property with a
pipeline system of over 10,000
miles; 170,000 net acres of produc-"
ing oil leases; 75 million barrels in

would,

pastures of West Canada,

volumes

long line (Southern Natural Gas)
to

TGT is

Among those waiting to receive
these greatly stepped up future

.cause

?
v

dollar

waste,

Cobleigb

m.c.f.

day now
flowing in from the derrick-laden,

fined.to lmmediate

200,000

mousy

the

around 32 to

Long

now.

Over-the-Counter

stock

Exchange, where it

bit soggy this. cap all those gas wells, and sit on
energy
ins still a them indefinitely, when they

atomic

year,

listed

topical notes

$1.40

the

Market, the
A discussion of trends in natural gas
plus some
about certain companies.

share in 1951 to

for the Commonwealth of Puerto Rico

P.O. Box4591, San Juan, Puerto Rico
.

37 Wall

Street, New York 5, N. Y.

II
mm

svXvviiii

name

Com¬

The Commercial and Financial Chronicle \

(1670)

Thursday, October 23,. 1958

The Threatof Government
principles. There is too little ap- age
preciation of the fact that' ..these". tomers.'twas.,even more. alarmii^ profit system for private iise .^
seemingly small steps do, in the and in terms of units sold, was at we must force our experts on
By J. W. McAFEE*
President, Union Electric Company, St.

about

Concerned

the

unwitting

support

Louis, Mo.
may carry us be- trend and I anticipate that it wih steps are... . .'
yond the "point of no return." ?
take very much, the same ,course ; ThefirstTVA biJl (S. 2790> was ? v
Public
service companies, are that has<been followedimthe at-,* introducedlby-Sehatdr Norris in
particularly vulnerable to the lack .on the electric companies,1924 and,.provided for a nation"something, for nothing" approach.' There will be every denial thatwide government - owned, power. •/>:'_;
Anything can be made to appear - the objective is Socialism. The; system; Its plainly stated, purpose
cheap
- ^
""x xt"
"
*"i""

ficient period,

given to Socialist

diffi¬

objective by the non-Socialist American public and the

culty of getting over to the public the true issues involved in
government ownership and unfair government competition,
Mr. McAfee calls for unification of those industries now di¬

rectly affected and suggests all businessmen be made to see
of today may well be the
challenged protagonist of tomorrow." The electric utility head

cealed.

that "the disinterested spectator

traces the

this is

Of
tri

and* to free :ttie customer practicing socialists. They will,- the bill received virtuaUy no supgetting serviee from a government'in maiiy iiistances, be put forward port in Gbngrhss.. ^;■..-v
operation from these payments, is; Ijy mien .of good intentions who :; 'y;
i926j,"-r-.Tsr^ir-ir-issjf'--4v-i:
almost ua br"
1
■ -----i-^-itmoney,

Socialism and warns
problem transcending heyond the industries

steps of the entering wedge of

common

thus far touched

by it.

socialization,
Government operation of busi¬
is a "common problem" of

ness

much

broader

than

scope

any

the industries thus far touched by

it, and to my
view, of great
.significance in
future

item

the

two of
k

this

con¬

sidered today.
The

United

States
been

lated

J. W. McAfee

has

capacity of man.
Contrary

immigrants from what

call the

those

who

tbihereuse the money
_

government;. in

Kas

Tjda|.

distribution systems and other

the" largest

the-

to the /
i.

wi^uiuvj.

Philosouhy

Seeking

^
irs

contrary philosophy is press¬
ing for domination.
were more venturesome and cour¬
People, generally, appear to be
ageous. and that they had the quite conscious of the military
imagination and determination to; pressure., Important as it is for
strike off across the seas in search' us to remain, able to protect our¬
of a greater freedom than they selves, it is at least equally impor¬
coulcl find at home;
tant that we retain the things that
'
These immigrants found great arc so worthy of protection.
natural

behind.

that

assume,

—a

they

The

lure

of the

IS,';

not

resources

*An' address
Annual

Mr.

Association,
Oct. 14, 1958.

conti¬

McAfee before
the Am^ricnit
City, N. J.,

Atlantic

T li

socialistic

many

of the concepts which be¬
a part of our national poli-

come

tT" •
It is

for

the. individual.

-? ?

limited
and

haianees
balances

and
ana

^ 'e?8?

—

nient to go

by,

„

ma,, otner

the

protection of
When these, lim¬

„

vvas

red tape."

On
un

the
tnc

ive
objective of

•

the
ine

hand

other
otnei

nana,

tlie jdeaS
PWAr etc

thfe wuA

li"

hYie'

business company is, nrohahlv

embodied in1 series

^^Uorti ^nce ^he' TOA
;
sold to sg^es ()t enoris
y-x.
vycie spia io Aet i was- passed r ito. extehd the,

were

people. .Many, and

most, of those

features.

u s

ers

„

who to

degree

some

the

small4 minority as to offer
throat
tmeat

tn
to

our
our

unemployed

/ Tf

I-

«5v<?tonv
system,

Annual Convention Issue

piotei.ani.

•

other

than

netwbrk

■

•

■

'■

of America
Qn Dec.

18, the CHRONICLE will publish its allimportant Investment Bankers Association of
America Convention Issue. This edition will

com¬

prehensively cover the Addresses, Committee
Reports and related news developments of the
Convention's proceedings. It will also include a
multitude of candid photos taken
during the
course

of the Convention.

•

Please rush your advertising space reservation
a
preferred position in this outstanding issue
of the CHRONICLE. Closing date for
copy is
i

for

Dec. 1.

■

Regular Advertising Rates Will Prevail
For

Space in This Number.

admission
hv-

no -

v,,

menns; the

onlv'^' ^
^

haye put

««■

the! electiMc^k,.

w^/-;:> y'i

J, ;
the REA* Aet was passed-in

tmn.

.■

/fl'a,,es «overurae|it Ownershij.-

Accordi„g to its terras, Fed-"

J936

equally clear that the ' 'The problent of government W'
/
quickly recognized'.:that the power business has roots ex.
the . furnishing
of '
they were to bring the owner- tending far back to the start
ship of all productive facilities this
yearsr
r
into
ownership : by the; govern- cialist^ Party / bpchly / advocated t
l
tati^n service " In another ^ '
ment, the first
to^mb- and
tain ownership step^wasbasis > of gbver^en^ownership of utilities ;^rt of
of the
other-, businesses "vitally es-; Hmn^
Kv
HnfihiUbri^ to 'riiral^
production, namely, the
^
As I will undertake to show^ sub-, : seriHal the people,
fare ?of
as,;^^4hp- --1920^^ -nPnuiatioii" r ~
^ ;
' 1 ^ ' T
sequently^ their first ob jective was /Socialist platform put it.
;
: ^
j
' ^
i
:

^^e'feids^cei

;utiliti|s.v

the

elcctric

utilities

untrl
a

dJe0n^s

H, Was not::, irtitlally, the Sbcialist Party/in

the gas industry had done
America considered revolutiohAy
fine job with an important andi Vi0rebee to be the method of

was.

until

little

have

^triri^ iithin'

afe^teetrififid;

-A

done

socializing
the

technique

"encroaching

work;and/trok'tiAiclue ter^the

new

facqd.thc risks .of developing great

.fHiirv

con-

.vsteihs

and • others •

approach

was,

natural gas reserves, designed and
built the equipment; to transmit

magazine*;reported-

attention.; Thero ^riy.20s.'the^party adopted the'

talk

it had

' ■'

Of'

S«ng ite%o£m.Tht%y

bfsic Paj't their, economy.that it
of our
attracted

;

^chaS*
Jfe-!£*S aXsThe
servem^or'almost

given by the SociaUst Public
all or some ofr
Ownership League
when itsnower comin- 1924
eleetric.:
and deliver it, the appliances to'success of a conference to draft
eomhd^ek
all '
make its use productive, and,'un- sviitable measures "for introduccustomers
«•:•*•
der appropriate regulation, rea- Hon in
CMgress^providing for -a pf ^ * fit f \> ^ -hi* *■' •
-i
sonably profitabje. It is only now, National Supers Power System.^
-The fact that glectacby is availafter all that accpmplishment, that The^article- said lhat
^/P^tne^ms < ;
the
big
government
adherent, vments were made for the^^ billS.--?!.
prodded on by the true, socialist be introduced in: the Senate byof
cooperatives tiiatand communist, finally becomes - United States Senator George W. tMy must seek expansion in otner,
•
-

■As

Norris and in the House by Con-

know,

1956 to

;

-V

This
"super
PQwer",
system
rapidly in would have; involved the nationThis.. Association ,has aliiation" of all, existing systems,

have

grown

recent years..
called attention
from

-^re(^tiPnsy'They Iiave set tneir^

^ssmahOscar'E. Keller."

over.

activities for
government ownership of the gas
you

business

25 Park Place, New.York 7, N. Y.

of,a"d„v\h0e0C'rUsX"n^al

c^Wry.''^For

zealous to take

The Commercial & Financial Chronicle

ewn

wa ;

assumb^^si

the,

of the events that

gdvernment j.ii

/ •

•....; •

their

have -been

Sj0me

correct in

Marxists

Investment Bankers Association
•

so^ardently

by the sociaust.,. And that
the would be only the beginning by

■

? collcci uv xne assump rmstance of something being other;
inaking, .^e;vnhah it seemed; where government ^ v ^
^
tp,you ,

-r

tions

^e'lMBiiiessma kg

Marxists' First Step

of the

government ownership..

they have adopted -in-^ the

necessaiy to then

.„.

establishment

are sym-

pathetic, they will still represent

47th

}

JO" «f opportumlics axiidahlc fo assist.

all of the fellow travel-

the devices

:■

authbritv" conceot acrbss

"vallev

who siin-

government..

t^pecp1., themselves,recogrnze that faet is apparent fioni

lhe

annrpoiaSlp
appreciaoie

but bv stehm -olants -' •
P*®"*8; -1 :, '
Was mot iContemplatedsin,
TYA A t as hagsed—but it fits - '
dams

... This

same philosophy as
effectively against the

pirnae, the/American

That

trie

are

k?7 Diiis»aie

the

used

hills

not by hydlroblec-

into business, were

•

itations are applied to the conduct,
of business, they become what wev

call

agencies of govern -

Most of these

iitcliTded

!
^
bascd.

other

appearance

have

Convention

•Gas

this

efficiency.

cheeks
enecks

provisions
,

is freedom

government

our

of
nent;
however, there are also something for nothing is probably
the strongest factor in the amount
great natural resources near and
south of the equator, which are! of public
support given to the
great variety of proposals (hat lumped
the

a'jiropos&i

Domination

"old

stayed

reasonable

popu¬

country"—prin¬
Now tliis whole system is being
cipally western and southern
Europe — and their descendants.. challenged. In almost every field
of human endeavor — military,
They had the same backgroundand much - the
same
talents as economic, scientific, and the arts'
we

'liilding
efficiently/..in,tthe{'m\teiclpal'

issue

must

in which they are

fectly clear to me that the concept
of government written
into, our Gan ..apd. will men~andt vwomen<
Constitution
is the key tp this work, more
great record of progress. It Has" framework of government or. m a >
demonstrated the startling effect;
of a free opportunity, with unlim¬
ited incentives, on the productive

d
against which

areas

the physical

a c

bring

product of some element be¬
yond the talents of the people and
advantages which are
available in America.
It is per-,

country. .1

Here

in sueh a way as of such phrases
startling strength to "cheap service," etc.
It is ex-| > permit me to give just one ex-'
Hidden Purpose of TV A
found. tremely difficult, if not impossible,
ample. This spring, when we we^e
My point is that for the United tO inform all Of-the public of ••the phtU'rOnfori' With the problems r»f
to
of the
Confronted' With the nrnhlpms of
I*11 ? JwS?**
4U*
TVA Act did notr even mention
There is reason to- argue
States, in the span of 170 years,- facts.
employment and the growing reto have grown from a struggling that a more simple, if less exact. .
w
r.»x.r;+oivt>x
federation of states into the domi¬ approach is more
nant nation of the world, must be
For example
to

the

strength
our

have ception is

charting
the

underdeveloped

either

been developed

lod_^Sd

fd Jelleratin2

the

fact

1957, municipal

erations in the gas

that
op-

including

municipals,

companies^

and Federal hydroelectric instal-

field grew in lations.

'and

the

buildiS-

transmission^

aXniSni
liJ^ Andthev

have to

other sup^liers'
tney navere^
Continued oh page ZD

Volume

5788

Number

188

The Commercial and Financial Chronicle

(1671)

tionary spiral
four

months

auction

has

recovered

more-

(

•»,

-;■»

■

•

pro-r

than

And Preservation of the Dollar

expand without pressing

production

able

nondurable

business; plant and equipment
during the past decade "-is ' per¬
mitting the current recovery to

one-half of its entire decline. The

•

developed. In only

total .industrial

manu-i

factured goods in August exceeded;
all previous records. Although the

production

reflect

mains

inflationary pressures, re¬
close

last fall.

the

lows
:

reached
'

avail-*

•The trend of prices in the recent

past

resources.

.Moreover, this expansion is tak*

ing place in

reassuring, coming as -it
a period of considerable

does after

highly competitive price stability. During the three
By JULIAN B. BAIRD*
number of unemployed continues
environment, with the result that years 1953-1955, you will recall,
Under Secretary of the Treasury
to
be
of
great
concern,
total efficiency is increasing and many prices changed very little, and
consumer,
income
and
spending costs (and therefore prices) are they have advanced only moder¬
Mr. Baird stresses Treasury-savings institutions mutual concern
have
hardly slackened at all— being
held
severely in
check. ately since that time. Yet despite
in the preservation of the dollar in an urgent appeal to nonindicating a well-maintained con¬ Increased ^ productive
capacity these
facts,
and
despite
the
fidence in the economic outlook. abroad, it may also
bank financial institutions to buy government bonds. Fully 4
-benoted, is tempering effects of our ample
4; I 'am sure you will agree with adding to the forces making for productive
resources,
we
must
supporting his chief's recent plea (Ed. Note:
See Secy.' 4
me
that
maintenance
of
this a- highly -competitive
situation recognize that the seeds of newv
Anderson's remarks in Oct. 2 issue of the Chronicle) and re"
confidence
is
one
of
the
most here at home,
inflationary pressures are present.
butting
disclaimers
of ^ non-helpfulness
in • this matter
These are the economic facts, They can and must be
important elements, if not the
destroyed?
they
are,
a
considerable before they undermine our finan¬
t most
important, in a sustained and
4 ,u (cf^ Aubrey G. Lanston's remarks on p. 3 of Oct. 16 issue), the;,,
distance away from some of the cial soundness.
r
:reeovery.
Consequently, the re¬
Under Secretary points out a reversal of the attrition of gov- ■'/cent -increase
in sentiment, that interpretations which are current
The Administration is
ernments in nonbank financial institutions' - portfolios would
prepared
These to meet this
inflation cannot be avoided is of in the financial markets.
issue squarely and
be significantly helpful. He analyses the mounting inflationary
> grave concern to all of us. Infla¬ market interpretations may be to make an all-out
fight against
sentiment and finds it is not justified. States new methods
.tionary psychology, as you know, mistaken, but the big fact is that inflation now, not at some future
has been particularly marked in they are being made. It is signifi¬ date.
4:'4/. •. ■
'
4- of financing are being explored though there will be continued
; ,■
the
stock
market, where it is cant in this connection that talks
A major factor contributing to
emphasis onr time tested methods. Makes clear that enlightened
^r
which we have had lately with
apparent that many people have
fears with respect to the future
been
f self-interest transcends yield as the criterion of iavings ■v
buying industrial common business leaders indicate that the value of the dollar is the current
4
institutions'^- sound investment policy without % jeopardizing ■: 4 stocks .heavily as a hedge against thinking of the business com¬ widespread discouragement as to
a continued price rise.
munity is' closely in line with the the expected size of the Federal
<
-4-;r 4'
'44 fkluciary obligations. 4"
^x{-\' 4
4
facts. Few inflationary fears are deficit.
Here is a problem which
Is Inflationary Sentiment
being expressed in words or deeds. we
The life. insurance industry .is ernment action and the build-in
can. frankly
recognize
and
On
the
;
Justified?
contrary,
businessmen clearly define.
the custodian of more than $.ipO stabilizers in our. economic system
How justified is this widespread appear to be concerned mainly
billion of savings of the American,m p Q i* t ant 4 factors; in
There is no basis for discour¬
with ways of meeting competition
people.
Their responsibilities |to encouraging recovery, from the concern about inflation? ]"
agement.; We do indeed have a?
First of all, let us remember successfully
in
a
"hard
sell"
recent recession. At the same time,
the 110 mil¬
large budget deficit in prospect-r¬
market.
a'-'''—-4'4V''
lion Ameri¬
theH4Administration successfully that inflationary psychology goes
over $12 billion
during this fiscal
The
counter forces to an in¬
media
of
mass
resisted a number of proposals for in>waves.- Our
cans'who own
year alone. In appraising this fact„
busi¬
massive Government intervention ccmmuriication, together with the flationary price rise—and
life insurance
however, .the ^importance of the
in areas' already well served by many
sensitive channels which ness appreciation of them — are
policies are
lag between business changes and
reasons
why
prices
private
financing
—
proposals transmit investor appraisals to the important
great. One as¬
corporation' tax receipts is oftei?.
which would have had unfortunate -money
and 4 securities
markets, have been relatively stable.
pect of these
lost sight of.
The receipts cur¬
results both on our budget out¬ mean that a change in sentiment
Consumer prices have advanced
responsibili¬
rently flowing into the Treasury
look and on inflationary pressures. can easily, get out of line with very little since last spring, and
ties which we
were
a
part of earnings during
I believe it is clearly evident the actual course of events.
in the Treas¬
actually declined last month. The a recession
year.
Earnings were
now
that the forces making for
A sober appraisal of the evi¬ all-community
wholesale
price low—the tax share was
ury share with
relatively
an
the industry is
early upturn and sustained dence brings to light the fact that index of the, Bureau' of Labor small—and
the result is a large
the preserva¬
covering
some
2,000 deficit this
activity stemmed largely from the our economy has strong counter Statistics,
year.
But if current
forces which can act as powerful commodities,
tion of the
has actually been tax
private sector* of the economy.
receipts were up to the level
deterrents
to
value of the
inflationary price sagging somewhat since the peak of the tax liabilities now
accruing
The
recession
in
the
durable
advances. First on the list is our of last March. The wholesale price
dollar.
The
—the payments we will receive
Julian B. Baird
goods industries did not spread more
than
ample
production index for 22 sensitive commodi¬
Treasury,as
Continued on page 32
you know, has
markedly
to others; No ;defla- capacity. The tremendous increase ties, which is usually quick to
become by far the largest bor¬
a

;

•

'■-**

rower

the

market.

investment

In addition to the $23 billion turn¬

over:

bills

Treasury

regular

This aiinouncement is neither

three months, the Treasury
this fiscal year must handle al¬
most $52 billion of maturing is¬
sues.,, Further
market financing
growing out of budget deficits for
fiscal 1959 and, presumably, fiscal
1960, will push this total up even
further. '
every

•

r-"; 44" 4.'"'''v*

offer to sell

nor a

solicitation of

offer to buy any of these Bonds.
' '

The offer is made only by the Prospectus. '.

$25,000,000

these circumstances, the

:> Under

operations

Treasury's

of- ex¬

are

ceptional importance in the econ¬

make in¬
investment
through them a
large proportion of our population.
choices *

The

omy.

fluence

; your

decisions

own

and

—

Twenty Year 5% Bonds

InHurn, your activities and those
of other savings institutions help
to r establish

within

limits

the

which the Treasury

Dated November lf19'j8

the

~4 4..

must'operate
*'■

have "a tremendous
stake in protecting the value of
Together*

people's savings.

■

: *

In terest payable May 1 and November

Due November 1, 1978

1 in New York City

Fortunately, we can approach
problems today in an
atmosphere of business improve¬
ment.
This
fact
is
of
primary
our common

importance to all of

Price 97'/2% and Accrued Interest

concerned

with the investment markets. Im¬

proving business will sustain the
flow of savings—essential to your
bperations, and to ours, It will—
with some lag—reverse the decline
in

•?T'-

44Copies of the Prospectus

tax

receipts, thus making an
important contribution to improv¬
ing the Government's fiscal
position.: 4
.

The

of
in

fact

such

determine, if we can,
just what factors brought it about.
American-

people

many steps over the years
strengthen and improve the

financial
to

its

into

and

assure

economic
a

benefits.

laws

our

tion of the

wide
We

structure

distribution

have

*An

■

CORPORATION

HARRIMAN RIPLEY & CO.

KUHN, LOER & CO.

Incorporated

general recogni¬

EASTMAN DILLON, UNION

KIDDER, PEABODY & CO.

SECURITIES & CO. '

GOLDMAN, SA CHS & CO.

HALLGARTEN & CO.

&LAZARD
CO.
LEHMAN BROTHERS
F

MERRILL LYNCH, PIERCE, FENNER

SALOMON BROS. & HUTZLER

& SMITH

Government's respon¬

address

Section

Convention,

THE DOMINION SECURITIES CORPORATION

BLYTH & CO., INC.

written

sibility to promote maximum
employment, production and
purchasing power. Timely GovFinancial

THE FIRST BOSTON

have

taken

MORGAN STANLEY & CO.

moment

The

be obtained in any State from only such of the undersigned as
such State '.

overwhelmingly
important development that I be^lieve
we
need
to
stop
for
a

and

may

legally offer these Bonds in compliance with the securities laws of

relatively rapid recovery
economy from recession is

our

may

Mr.

Baird

before

the

American

Chicago,

III.,

Oct.

10,

the
Life

1958.

SMITH, BARNEY & CO.
October 25, 1958.

WHITE, WELD & CO.

...

(1672)

The Commercial and Financial Chronicle

can-Marietta Company, Dept. R-10, 101 East Ontario

Street,

Company—Data—Purcell & Co., 50 Broadway, New
York 4, N. Y. In the same bulletin are data on Lone Star
Cement Corporation. Also available is an analysis of Hooker
Chemical Corporation.

Recommendations & Literature

White, Weld & Co.
(Special to The Financial Chronicle)

Corporation—Report—J. A. Winston & Co., Inc.,
Also available is a report
Worldmark Press, Inc.
'

: r

has

son

Broadway, New York 4, N. Y.

Boeing Airplane—Analysis—Halle & Stieglitz, 52

following literature:

..CHICAGO, 111.—Carl W. Jack¬

Atlas Credit

It it underttood that the firmt mentioned will he pleated
interested parties the

Thursday, October 23, 1958

Anaconda

Dealer-Broker Investment
to tend

Carl W. Jackson Joins

Chicago 11, 111.

New York

Cascade

Wall Street,

;

5, N. Y.

Natural

associated

with

;

-•

Gas

become

Corp.—Memorandum—Hemphill, Noyes

& Co., 15 Broad

Atomic Letter No. 52—With reports on Geneva

Atomic Confer-;
the nuclear navy, Philips Lamps and Cenco Instruments
Corp. — Atomic-Development Securities Co., Inc., 1033
Thirtieth Street, N. W., Washington 7, D. C.
ence,

Buraham

View

Delhi Taylor Oil
•

Brochure—Canadian Institute ;

review of Powell River,

5 Hamam

—

Life

Insurance

Current information

—

Bulletin

Huff

;

White, Weld & Co., 30 West Mon¬

^ ;;y:yV

officer

Bulletin

—

Broadway, New York 5, N. Y.

pany, 207 East Michigan
available is a report on

Co.,

—

Milwaukee Com-

New York annual cocktail

Street, Milwaukee 2, Wis. Also
Smith Engineering Works and a

—

1957 annual report

Capital Fund of Canada Ltd.

—

—-

Report

Mountain

—

Dermott &

Railway

■i

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

Nov. 8, 1958 (Philadelphia, Pa.) y
Investment Traders Association

Leason

Organization, 120 Broadway, New York 5, N. Y. Also availa bulletin on Yuba Consolidated Industries, Inc.

N. Y.

of "the

York 6,

Threat—Comprehensive study by J. Walter ;
economic

offensive

the

Soviet

Union—

Taxes—Booklet

giving

current Federal and
State Stock, Original issue and Transfer Tax rates—Registrar
and Transfer Company, 50 Church Street, New York 7, N. Y.
•

Acoustics Associates, Inc.

•

Data

—

Trinity Place, New York 6, N. Y.
Microw ave Associates, Inc.

Troster, Singer & Co., 74
Also available are data on

American Investors Corpi

— Memorandum
—
Johnson, Lane,
Space Corp., Citizens & Southern Building, Atlanta 3, Ga.

are

Studebaker Packard vs Botany

Westheimer & Co. Adds

—

Third quarter report

For

—

Ameri¬

and

Co., 322 Walnut

Street, members of the New York
Cincinnati Stock Exchanges.

Two With McDaniel Lewis

Arthur Jr.

and Charles J. Helton

joined the staff of McDaniel
&

Co., Jefferson Building.

ultrasonics—"silent
come

Fast-growing producer in the field

retirement

York annual dinner at the Wal¬

dorf Astoria.

had

been

Vice-President

April 1-3, 1959 (San Antonio,Tex.)
Texas

Group

Bankers

Investment

Association

ica annual

Amer¬

meeting at the Hilton

Hotel

,J.¬

Nov, 2-5, 1959

the

(Boca Raton, Fla.)
National Security Traders Astociation Annual Convention at

(Special to The Financial Chronicle)

Collett is

now

—

Ralph V.

the Boca Raton Club;

Connaway & Holden, 430 South¬
west Morrison Street.

Opens In v. Office

,-i

Ethel

Joins Curtiss, House & Co.

Baer

House

Building,
York

and

with Hunter Parker,

CLEVELAND, Ohio

Bankers Trust Company.

—

conducting

securities business from offices at

171

West

71st

Street, New York

City.

Howard

now
with
Curtiss,
Co., Union Commerce
members of the New

Midwest

Mincoff

Stock

With Green, Erb & Co.

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Francis W.

Ex¬

Olech

changes.

•

affiliated

now

with

Green, Erb &

Co., Inc., Superior
Building, members of the Midwest

sound'*

Stock

age.

LOOKING FOR THE UNUSUAL

Exchange.

Foster & Marshall Add

;

(Spe.-.ial to The Financial Chronicle)

Beautifully Bound Set of

MEDFORD, Oreg;

Ha inline

of microwave energy;

widely used for navigation, fire control and long

Dec. l<h 1958 (New York City)
Investment Association of New

May

(Special to The Financial Chronicle)

George F. Taylor

MICROWAVE ASSOCIATES, INC.
,

Yamhill Street.

PORTLAND, Oreg.

(Special to The Financial Chronicle)

Assistant

evidently has finally

annual ^convention

atrthe Americana Hotel.

With Hunter Parker

Prominent in the field

America

and

George F. Taylor passed away
Prior to

ACOUSTICA ASSOCIATES, INC.

Beefsteak

(Special to The Financial Chronicle)

Oct. 16 at the age of 62.

which

•

/y,,' '

Annual

30-Dee.
5,
1958
(Mfcmi
Beach, Fla.)
'
Investment Bankers Association

PORTLAND, Oreg.—Richard R.

financial institutions

—

y<'

York

Nov.

Thompson has joined the staff of
Earle
C.
May,
618 ; Southwest

his
.

;

Sterne has become connected with

Lewis

Joins Earle C.

■v..

(Special to The Financial Chronicle)

have

Briefs

Mills—Comparison—Lerner &

Party at the Antlers'Restaurant.

—

Co., 10 Post Office Square, Boston 9, Mass.

GREENSBORO, N. C.—Jarvis J.

American-Marietta Company

preparation

;

-■

reviews of Continental Can and Standard Pack¬

aging Corporation.

of America

Foundry—Review—Shearson," Hammill
Co., 14 Wall Street, New York 5, N. Y. Also in the same

circular

Westheimer

Co., 160 South Main Street, Salt Lake City 1, Utah.

-New

New

.CINCINNATI, Ohio—George L.

American Cement Corp.—Memorandum—Edward L. Burton &

American Machine

•

—

Broadway,

Ill

Report — Thomson & McKinnon, 11 Wall Street, New York 5, N. Y. Also available
is a report on American Cyanamid Co.

per copy.

Co.,

N. Y.

Radio Corporation

Gregory & Sons, 72 Wall Street, New York 5, N. Y.—$10
Stock ^Transfer

Haupt

Pillsbury—Review—Ira

Security Traders Association of

able is

Club.

Nov; 10, 1959 (New York. City)

4, N. Y.

of
Philadelphia sixth annual
dinner dance at the Philadelphia

Cricket

Conklin

Sulphur Company—Bulletin—De Witt

Pan American

conven¬

tion at the Hotel Sherman.

Mackie, Inc.,

National Association of Invest¬
ment Clubs 8th annual

Carl M.

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

Uranium—Report—Singer, Bean
Exchange Place, New York 5, N. Y.

Hotel

the

Nov, 7-8,1958 (Chicago, 111.)

Company—Analysis—Peter P. Mc-

Pacific

party

dinner dance at

and

Pierre.

Loeb, Rhoades & Co., 42 Wall Street, New York 5, N. Y.
Facific

Security Traders Association of

Supply Company, Secretary, P. O. Box 989, Salt Lake
City 10, Utah.
-*'■••• 7-.-J > Vyl,'. :
-r-

Northern

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

Russian Economic

Investment -Field

;* Oct. 25, 1958 (New York City)

Report

—

Fuel

New York

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

New York 5,

Harris, Hall & Co.

Co.,

First National City Bank of New York.

Mountain Fuel Supply Co.
;

Stocks—Study—Distributors Group, Incorporated, 63 Wall
Street, New York 5, N. Y.

Co., 36 Wall Street,

has

EVEN TS

120

Oil

Jackson

COMING
'■

memorandum

Bache

Mr.

—

Co. 40 Wall

Reynolds & Co., 120

—

Mountain Fuel Supply Company

Cummins Engine Co., Danly

Over the Counter Newsletter

Street.

roe

recently been with Growth Indus¬
try Shares. In the past he was an

Lithium Corporation of America, Inc.—John H. Kaplan &

3rd quarter earnings
Laird, Bissell & Meeds, 120 Broadway, New

—

5, N. Y.

Schweickart &

Broadway, New York 5, N. Y. Also available is a bulletin on

New York City Bank Stocks—Bulletin on

York

—

■'V,
Carl W. Jackson

Dresser Industries.

Street, New York 5, N. Y.

comparison

Bulletin

—

Interchemical Corporation

Co., 210

Machine Specialties and Dodge Manufacturing—Bache &
36 Wall

—

Analysis — du Pont, Homsey & Company, 31
Street, Boston 9, Mass. Also in the same circular is an
analysis of Virginia Carolina Chemical.
r

Yamaichi Securities

Stocks—Bulletin—Robert H.

—

'.
.

Milk

"V West Seventh Street, Los Angeles 14, Calif.

Machinery Stocks

;

Corporation—Analysis—H. Hentz & Co., 72 Wall Street,

Howe Sound

'*'■

Paper Products Corp.

Street, New York 5, N. Y.

investment opportunities

f ,:

' A-

.Vy-lv;/^yy,,' 'i,

General Motors Corporation—Report—Parrish &

Harkisondass, Lukmidass,

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

—

5, N. Y. Also available is a review of the Copper
Situation and a memorandam on Brush Beryllium Co.
v

"—American & Foreign Power Company, 100 Church Street,
New York 7, N. Y.
y

Japanese Stocks

;

New York

Street, Bombay, India.

Investing in Costa Rica—Booklet

& Denton, Inc.,*:'

Co., 29 Broadway, New York 6, N. YVv-;":

—

Review

Memorandum—Dempsey-Tegeler

Street, New York 5, N. Y.

Fibreboard

change Place, New York 5, N. Y.
Indian Cement Industry

—

■

Study of Casualty, Fire and
Marine Insurance companies—Karl D. Pettit & Co., 20 Ex-

T
; •

— Memorandum
—
General Investing
Corp., 55 Broadway, New York 6, N. Y.
•
v.. • *
-

Frain

Hiding the Candle of Growth

Equitable Credit Corp.

Canadian Market Trends—Bulletin—Ross, Knowles & Co., Ltd.,
25 Adelaide Street, West, Toronto, Canada. Aiso available is
a

Wall

;

'"'ir

y-y;;f

vyy.

Corp.

Stores Ltd.—Analysis—Burns Bros.

Dominion

Accountants, 69 Bloor Street, East, Toronto 5,

Ont., Canada.

—

Co;, Houston Club Building, Houston 2, Texas.;

able is current Foreign Letter.

of Chartered

—

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

—

Card Memorandum

Scherck, Richter
Company, 320 North Fourth Street, St. Louis 2, Mo.. Also
available is a card memorandum on Universal Matoh. A;

—

Canada's Investment Business

Street, New York 5, N.'.Y. " "

Colorado Oil & Gas

Commercial & Financial Chronicles, 1920-1945
range

has

staff

Foster

South Central

been

—

•« ;

Lowell E.

added

the

Marshall,
Avenue;.

detection.

With E. L Hagen & Co.

FOR SALE

(Special to'THE Financial Chronicle)

PORTLAND,

Troster, Singer & Co.
Members t\Tew I ork
Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype NY 1-376-377-378

McKee

Available in New York City—Write
/

now

Oreg.—Paulus
with

Co., American Bank

•

Hagen

Building.

Phone REctor 2-9570

Edwin L. Beck

Joins Milwaukee

Company

(Special to The Financial Chronicle)

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

ST.

PAUL, Minn.—Raymond K.

Gooch has joined the staff of The
Milwauke

Co.

Endicott

Building,

Volume 188-

Number 5788

The Commercial and Financial Chronicle

(1873)
exclusion of

The

all other considera¬
tion. This impression is not justi¬
fied. During last fall and
winter,
when -business was in a.
slide, the:

Spectre oi Inflation

Reserve threw up a massive addi¬
tionto the credit supply to halt
the

By JOHN C. HALL**

now

President, Mortgage Bankers Association of America,

Today's strange situation that has brought about savers' loss
of faith in fixed Income obligations is working to create the
most serious crisis yet seen in the mortgage market. In declar¬
ing this, Mr. Hall strongly defends the Federal Reserve's lone
hut gallant stand against Inflation and praises its criticism of
FHA-VA fixed rates. The mortgage .hanker singles out labor
power and government/extravagance as the real culprits and

observes attion

be taken

ean

m: tune to avert

allowed to have the
> :* supply

available

must

xontmued infla-

have

Federal

the

seen

been pretty

budget rise year after year against

much; in face
of a crisis of
one
kind or
another since

only feeble efforts to control it.
They have seen the Congress this
year throw restraint to the winds

the

ready

end

cure

recession

its

passed

World War II.

They
prices of nearly

several

casions f f o
lack

suffi¬

face

have; seen

decline

serious

cient funds to

business.

orderly, effi¬

creases

cient produc¬
tion of hous¬

the
John

ing:' And in

have

seen

work. If the situation

bad,
people seemed to reason, that the

labor

Reserve

industry in face of

from

poorest earnings experienced
postwar period.

money

; Treasury,

about up.

People .have
seen4 all_ these
things and they have begun to

money poured into it as to overstimulate building and contribute

building costs.

order

was so

manufacture

rescue

the

then the game must be
At any rate, the support

was

withdrawn; and the present
approach, as far as I can figure it
out, is to attempt to tone down
stock market speculation on the

between times it has had so much

to the inflation of

had

in the

Hall

wonder whether this is what they

must look forward to

begun

have

They

felt

indefinitely,
to
wonder

one

hand

and

the

other

were

borrow

Present Fed Policy

quickly became apparent
however, that the existing public
mood, these tactics would not

unions exact substantial wage in¬

They

loans

choice

maintain

government

open

not

VA
m ;

the
every thing they
buy stay high, or even rise further,

oc¬

sold

the

away

maturities,

when the so-called remedies were

elsewhere

not.

made for
the

them

react***! of

interest

not

whether

rates.

vear

have

That

choice

was

lenders

This

trend 4»-interest

ward

rates, we
prospect of having funds
from mortgage invest¬
as
rapidly as they were

face the

diverted
ment

turned toward it last winter.

catch

our

breaths

once

we ought never
forget that the Reserve's ob¬
jectives are- our- objectives 7 and

fixed

nothing; that
the Reserve's battle is our
of
battle. The Objective i» a stable
FHA and VA borrowers in every
dollar and the integrity of obliga¬
period of high priced money. The tions
based on that/ dollar. The
money is taken away from them
battle is against the forces that
before they have a chance to
would destroy confidence in the
decide if they will
take it or dollar
and drive investors away
leave it.
'r 7
7
from fixed income obligations. In
1
the
long run our interest is
Real Culprit Is Fixed
surely on the side of, .and not op¬
7
VA-FHA Rates
posed to, what the Reserve is now
There
is
a
tendency among endeavoring to do.
those concerned with housing to
7 As I have already said, the
blame this result on the Federal
Federal Reserve among all the
Reserve. I know of some homenew.

It appears to be the fate

Continued

;

are

page

Jhey c^ in the knowledge that,;

This is not

through tax deductions, govern-.
will pay a lar0e part of the

0ffering Circular. The offer of this Stock is made only by means-of. the
he read prior to any purchase of this Stock.

Offering

Circu lar,which should

iP^res and
Jj? exPectancy.
^at repayment will be made in
cheaper

while

dollars,

others have taken

many:
view that

the

the solution is to get into

30,000 Shares

equities

at whatever cost.

This is
of

should d? a£out it. Many of them
apparently have decided that the
JJjmg
do i® ^
f

while in fear? that they may

at the same time

automatically by

decline in the interest
rate structure brought the fixed
interest rate on FHA mortgages
into an acceptable relationship in *
the market/ Now,
after a few
months of a reversal of the downgeneral

go too far; and we ought always
given a free to feel
free to criticize when we
they would think
this may be the case. But

whether they can possibly expect allow interest rates to rise to a
had a double crisis, ^frst money next gear's dollar to be as good point where future. Treasury Issuddenly became
available for as this year s^ dollar and, if this sues win be attractive enough to
insured mortgage loans, as "the
^
what they the public to avoid the necessity builders, for example, who
Tn this narticular

have

from its traditional practice, and withdrawal of funds.1 Unlike other
also bought obligations of longer borrowers, borrowers on FHA and

point ;

It has suffered

enacted.

period
was
the Reserve!
considerable

April,

but.-it temporarily broke

had al-

that

turning

In; carrying out their purpose, taken identity. The real culprit is
monetary
authorities have fixed interest rate pblicy and not
taken a number of steps. They monetary policy.
have exercised their power to inT
if Actually, the'
people atrthe Re¬
crease
margin requirements in serve have been outspoken in
Stock market trading.r They have
deploring the fixed interest
the

People

the

same

to have

major intervention by the Sys¬ sure that monetary policy is V 9
understanding that sinister force" designed solely fjoF
Secretary of the Treasury, their special discomfort.
This, of
concurs in this position.
course, is: a, sort of case of mis¬

tem. It is my

The mortgage market faces a sion is still a good many months
crisis.; This statement sounds like away.
;
a piece from an old and well-worn
j The. reason for this strange
record. The mortgage market situation
is not hard to
find,
seems

for

policy
obligations in and its impact oh* the mortgage
market, thus reducing market. They would, much; prefer
given a
the lending power of the com-" to
see all interest rates free and
share of the honors for the
present mercial banks. They have ap-;
to
see* all
borrowers 7 have : an
upturn.
-.vv
'
proved an increase Of %% in the equal opportunity ta
compete for
Now the situation
confronting discount charged on loans made whatever-volume of credit"
may- be
the Reserve is the
Opposite of: that by the Federal Reserve Banks,
available at the time;. They ; do
to which it adapted itself so effec¬ These actions
were
designed to not like to see what is intended
tively. a year. ago;, and the task slow down the rate of borrowing
to be a general4 overall restraint
it involves is much more difficult
for speculative and hedging pur¬
act as a selecttvecontrol;: imposing
than the one it performed
during poses.
Their 7 immediate ; effect, special restraint upon
a
single
those months of decline. Put in its
however, was to contribute—along area of the economy. The remark¬
simplest terms, it. is the task of with Continued, heavy private and
able; record ; of - stability ; in: the
restoring public confidence
in government borrowing—to a re¬
conventional loan .area! indicates
bonds and mortgages—-which is to newed
tightness in the credit sup¬ that mortgages' would.-not fare
say, restoring confidence in the ply and the current rise in
inter-; badly if they were not subject to
dollar itself.
est rates.
V' ;
-77777.: ",l this special impact which follows
When the first serious break in
In the process, naturally, the monetary actions but is contrary
confidence occurred
following the mortage market was affected—as to the theory of the broad exer¬
it should expect to be affected— cise of
Treasury's June financing effort,
monetary policy.
the Reserve endeavored to handle by a stiffening in its interest
All
of
us,
indeed,., whether
rates. Due, however, to the. policy
the situation by lending its supof maintaining rigidly fixed inter¬ realtors, oir builders, or mortgage
port to the government securities
originators; should be supporting;
market. The System not only ac- est rates on FHA and VA loans, rather than
quarreling; with the
quired a large amount of bills, "the mortgage market has suffered
monetary authorities, ; We may
an
effect
reached "in 1

competitive privilege for credit
is allowed to other forms of investments.

are

inflationary pressures are absent at this time. He
ad vises that heavy Federal borrowings necessitates penalizing
other borrowers and: that the price will be higher mortgage
interest rates and fewer homes.; But, he adds, there should
be a freely moving interest rate, so that mortgages can be

results

evidence; and, since this

the. only positive action
by
government to have an effect be¬
fore
the
turning

tion while

The

was

President, Cobbs, Allen & Hall Mortgage Co., Birmingham, Ala.

•

movement.

serious matter for all

There is

question about
that- But this is not the crisis I
want mainly to discuss. Back of
the possibility of temporary disfinancing and
building industnes is-something;
us.

Wch^re^seripus, This .is the'
possibility that;
B^vers and myesjors

Whether this is true
securities

The Bank of New link

not, the

markets have been act¬

ing as if it were true; The markets
dearly reflect an inflationary bias
jn the economy," or at least in
people's attitudes about the econ-

CapitalStock
$100Par Value

the bias: becomes
jphre evident and If Investors foljow more vigorously the paths
0my.

And

There

can

question about

Subscription Price $225 a Share

Congress, which promises to
more
generous
with
the

people's

Strange Situation

the

•

Rights, evidenced by subscription warrants, to subscribe for these shares have
been issued by the Bank to the holdefs of its Capital Stock, which rights will
expired 3:00 PM„ New York Time, on November 14,1958, as more fully set
: forth in the Offering Circular.
: *'•
;

may, in their fear of in-;. they now seem to be following,
flation, lose faith in fixed income the future of
long-term, fixed inobligations, of which mortgages come obligations might become
are
the prime example. And if
very dim indeed.
mortgages
should; really ;lose;
favor as an investment medium,
Only One Bulwark Guards Us
private. financing: is sunk and
Against this, possibility, there
private
building also t is sunk. stands one firm bulwark. It is not
that.

•

money

its

carnation-;thah in, its

last,

offer shares of Capital Stock at prices not less
Subscription Price set forth above ( less, in the case of sales to dealers,
the concession allowed to dealers) and not more than the highest known prices
The several underwriters may

in¬

than the

It. is

There is good reason to believe
that recent movements in the se¬

pot likely , to be the Admihistra-

curities

being offered in theover-the-counter market
by other dealers, plus the amount of any Concession allowed to dealers. \

weak resistance and .outright en¬

markets1 reflect

just the

tion, which

has

at which Capital Stock is then

varied. between

fear1 I
have 7 mentioned.
Stock couragement of new nondefense
prices have moved steadily up¬ spending programs. There is no
ward in spite" of deduced divi-: present prospect thai we can be
dends, ; in
spite
of
uncertain helped by the breaking out of

■

earning prospects £6r at least the
next

half

year,

and

spite ~ot

what is yet" a. moderate recovery

from

our

Sion.

sharpest postwar
the.

same,

reces-

time' bond

peace

and the resulting reduction

the cost of armament. The
withstanding of inflation is not
.likely, to'come'from any of these
MORGAN STANLEY & CO.

quarters,

prices 4 have-: moved down and ; The place where a stand will
borrowing has continued at a assuredly be made
is in the
Jiigh rate, in spite of a steady Federal
Reserve
System.
The
decline in capital outlays and in willingness of the Board of Govspitc of the-probability that any ernors to put itself in this exreal upturn:, in industrial expanposed .*nd( often uncomfortable

THE FIRST BOSTON CORPORATION

;

LAZARD FRERES & CO.

rrrrr.

Copies of the Offering Circular may be obtained in any State from only such of .t.
theundersigned as 'may legallyoffer this Stock -in compliance \ *'
"
*..•
v
uith the securities laws of such State. •
v
7

AUku^r&i.

; ^

„

...

bM.-r*-wctetaTp£('

creaVAia* Oct. ie, t*M«

position hasf given

some

people

Impression that it is obsessed
with the idea* of inflation to the

MERRILL LYNCH,FIERCE,FENNER&SMITH

WHITE, WELD& CO.

October iH, 1958.

•

The Commercial and Financial
10

(1674)

for

For

By JOHN M.

New York bond dealer offers

1957

should

bond counselors

against last September's rates,

summer

until it is

will have to live with unsettled and
prevailed since mid¬
settled as to whether we will place anti-

inflation

measures

ahead of low cost Federal borrowing or

Mr. Whitbeck opines we
V

disturbed market conditions which have

///:.///•/.;;.■///

■

First let
•about

business

our

vtce-versiiT"
and

how

and

berg

agents who

«s

bring buyer
seller

and

dealers, acting
actually
bonds

account.

ten" dealers—rarely

mer-

ehants

for

and

constitute part

-of

the

all
on

John M. Whitbeck

tute

the

to sell the bonds

move

our

The

the grocer is

cialties. One w
^wxwcd. v/uc of

ours
uulB

offices

trict bonds. Our
cituated

your bonds and our salesmen, in
addition to knowing the territory
—^and

nearly

than

bear

period

life

seven

have

suaJly know

....

because that is

actually the
la

would be
urni 1

familiar

one

but

%'v;
is on..-Within the ^yndicateV

race

"gross spread"

term

both partners 'and competitors:* Many institutional buywe

are

rate

Those

bonds.

elements

rate,

ers;

the

are

yield.

first

two

the

everv

can

vary.

latter

the

portion

only-a

until

members

Los

u1lf

'of

definite ideas

actual

receive

the

Syndicate.' We 'Our- syndicate

our

xof

$17.00;

set

per/:

sales.

•

bonds,

all*/-

agreements :

have riot been sold.During the /.

gross spread

$1,900^ bond." We" life of; the syndicate all members r

bohrid to maintain.'the estab- t
lishe:d prices. A majority in inter-y
est in the syndicate, may .raise or i
lower the prices fixed initially; it •;

Without the concept of yield iwere .willi^g ,0
as
would be faced with a very cum-/$5.00 per bond as a concession or
bersome problem. Investors—both itrade . discount toi othen^dealers.
private and institutional — have iThat comes out of/the $17.00 gross,
very

his

welcome.; their help,ih distributing usually extend- for a -period of 30'
the bonds and are glad to pay for days but may be extended and /
thcir efforts.
In-a recent school frequently- are-if all the bonds 'C

are

* uu ■

piace we allow price concessions sales must be made on a "when,
to
other-•dealers
who * are ™ not as and if issued" basis. t:. v
)

third element
only onewe district issue

•

can

frequentlywrong, course/ initially weJ are/not able
gross spread there are to deliver the actual bonds so that >

and; is

deductions to be made. In the first

dealers

complete freedom in fixing
reoffering price. Talking on the basis of $100, we may
reoffer at 102 or 99 \'z or par, that
is $100. That is the
of
yield and the

>,r.

salesman's :; advantage ;(to '

every

issues, "advance ' retail movefast. in additich each dealer / .
our probable competiis compensated,'in-part,/in pro-/*;■

The

tibn.

have

;

that is the banks, insurance

orders and

can : never

the dollar

district

which bids

a e ^

acceptance of the parable

your

changed and only the passage bf gUess
time can change the life of the. bYom

issue

for

that

from

cvndiote

vol

dealers

COminff

and

interest

The

ten

composed

nailtnrc'-4: Manir. incfitn+iahol '.Kinr^

'Jamil'rhP Kmss
more accurate. The gross
mnrn

ofsix ^years; spread which we set for ohrselves

life

most favorable bid fixes the

District -is

School

r. • •

+K.'

syndi¬

our

issue

from

always

grout)

came

well
of

are

■

ihake

awarH

^bbwii—and^vo^i^lv^l^^^

sight of the fact that;.

itime," tFie floating supply of com-

Moreover, it is
have
modest

issues

ten

varies

distribution

the

for

•

their \'<

aggregate in one issue.

Philadelphia

is school dis«0wu/Ul ««»-

lose

r never

d^S

*?i

maturity

would

re¬

}*t.on ./VhTrf

and 0ilanuyieu!fninn°!n)!
each has his own spe

lines

better

composition of

cates

specialized

•

and nine days fcom today,

his items of stock.

Our business is more

price using the lowest rate of idterest which will produce at least a nromDt
why we price bonds in par for you and a profit for us.. ... v
Jr
"yield"
rather
than On the subject of profit we must,^

Veal* from todav the same- bond
A year from today the same bond

Arranging the Syndicate

eager

SSaible

to the public.? We: then.-^w each yield to a dollar tprmihnf:nv,:

be sold
convert

rate,

years

the

consti¬

just

are

encompasses

here

is widely used
employ are uni-

the

times

merchandise

the

shelves and

amounts

•"

his shelves, bonds

discussion

for

practice

the

except

one,

obtain

and

for

better

grocer

owns

Stock

issue

distribution.

tail

involved

very

ular

stock in

our

trade. Just

but

small issues. We almost
always bid with others. By doing
so we spread the risk on a partic¬

bonds

cchool

subject

the

too

...

You have noticed
.that each of the bids you receive
carries the names of from two to

buy

are

/•/•-

,.„reo

have

actual bidding.

for our

own

Now

;

principals,

isr™ oKoii
^
the result before you da?as^.we
dates
of , your.;we shall meet competition' at your, tbmpare bids in New -Y6rk;a few ■&;*?
serial loan are fixed by you. ' A ^alc'/Z'
: : /
:; ./ ; trr , - - '' minutes before the deadline—our
de;
;
bond maturing Oct. 15, .1965 will-'
bond
1965 wilL j; j vhave :- used the term --"profit*'sales forces are released and-the > ■
aie releas
l > have used the: term "profit" , sales
...

The

leads to a point
diminishing returns—or worse!

interest

—

"dollars."

chandise quickly

to-

gether. We

terms

price.

figure

one

show you

bidding syndicate on

our

subject

of time to maturity and
price. I shall attempt to

dollar

We are in
business to make money and it is
axiomatic that over-priced mer¬
the

Brokers act

elements

period

with a majority of the other mem-

Why all the others who bid are
acting as dealers, not brokers.

duces the

/ /

t
:
t W
Discusses the "Yield"

three

or
disagree

important, we may

T w V»1V
*VSJV
gross % profit,- 9C
pro- ->easek V
yah^b^ne^it-lose
$1,004.10 which we paid money.• v ;-■'/■/.?/'-

potential

AAV

record

which

equally

but

finally,

And

something *•

tell you

UXVUO.

the hour of your sale we are if-/
revocably:. committed : and you y
j
^nd the tables we
have our certified check to secure
i Here I must interject the sub-'versally accepted. The only time performance.But you have the
ject of yield, not because it affects we find ourselves in disagreement
to yyeject any/or all- bids,
you directly but because it is vital with a' customer is when one of •#"a£s a one-way street but 'we //;
in: the marketing of your bonds— us makes an error.
/://
011
T®1?*is a perfectly
in fact nearly all municipal bonds)/ •'■'//
* *' • .///*■//'Pr°per>way for a public body to ^ ^
—and because you are entitled to Determining the Competitive Bid conduct its^ affairs:- At that point, ♦ ^
understand
what
our ; pricing/:
in the" actual nrenaration of a how^ver, there is one thing you- j"
?
«» do to help-usr That is to make
'
procedure is.
"YieTcF'is an "expressi^
we think your bonds can ^'» "

.//•

height of interest rates

and investment advisers.- Noting the
in first ten months of

Heour

sources

sales

the Notice of Sale later.

illuminating advice and insight

of school bond issues which

successful marketing

Thursday, October 23, 1958

is
comparable issues and get you.
v-7 ■yt, ' ■
;-Lt■*-v?,
'■ \
smen
of his salesmen who >' nf course, when we close a sale-Recommends. Prompt Rejection •'•yf-.t
who>; of
a sale
Or Award
are most likely to find retail out-'wjth
our customer—expressed in
lets for your bonds. What we find." yield—we must translate: that into
Probably all of you are familiar
in your Notice of Sale is very dollars for settlement. Themathe- with the actual sale but there is
WT
important at this point. I shall matics
involved ', in -converting one angle that you may not have
have some specific comments ori'Vield lb" -dollars and vice versa is considered. When the clock strikes/

New York City

be of interest to school districts and their

recent

WHITBECK*

Vice-President, Blair & Co., Inc.,

the

review

the reaction

Successful Bond Issu

other

and

Bids

must

Requirements and Advice
:

Chronicle /.

how their:Our;

own

is very seldom that the prices are

salesmen-must be paid

•,

some

tiave

become

type of security

jLvyiig.,- xx.

vuicio

luvtonn^ino,

lUCH

&v;o

clU VtM. ti&il

anU

cijlc

a^uvioi

uubtiwu.

iii-

^<>vav* W

discount/-rate,.. which sends the ''
$17.00. v-Wheii the account entire bond market * sky-rocketand
tively low rate of return. If they is'finally closed, the profit actu- ing.
'i'; ■'
lines and will not bid for school a.1^r particular significance out- buy your bonds which mature' 40 ally booked will be considerably
1 We, of course, wish ;to make "
side their competitive position in
lionds—even dealers in your com¬
3?ears
from now they want; a less' than the gross ;spread^which our capital as productive as pbsr ," 1
the trade.
munities
They
probably
have
higher return. Not only that,'they was our starfiilg flgtire.*/ ./. sible which means keeping it con-"

ctitutional

and

private investors
bonds.
Other dealers specialize in other

*who want your

through

evolutionary process
their composition rarely has

of the

school and

taxpayers' willingness to foot the
fbill but they simply do not wish
commit

chandise.

unfamiliar

for

mer-

women's

dealer

turn to
a

years.

That record

tells us the names of all the dealwith whom we have bid for

ers

even a

dozen children's

bonds in the past. It also tells

which of those dealers has been

manager of the group. It may be
us or it may be another. The manwhose offices ager is usually the dealer who

TThis explains why the lists of bid«Iers contain relatively few hames
■and may

omit

pass

you

some

first

day.

every

specialists

have

must

for

have

the

branch

tory

based

of
points. We
balanced inven¬
experience
and

find'

becom¬

we are

account.

canvas

which
wish

course

the
the

<and

New

York

their

local

consider
loqsider

circulated

bid.
pid.

salesmen

issues

stock
of

their

who

need

meet

common

wishes

the

customers.

due

particular
spells out
of the man-

the obligations of each

such

cir¬

a)coTnrMafofZtters^

?he

snecificallv
i

covered

are

may

bid

for

Buffalo

Issue and pass Oyster Bay.
1

•
.

The manager calls a meeting to
discuss the bid

Y«rk City,

price and the retail

offering prices a day or two before the date fixed in your notice,

s^hoo^Bufah>bOffie Prior to that meeting each
ber

New

Oct.

lass.

must

produce

the

demands.

one

years

the different maturi-^

variously priced to
yield the customer
any

one

time there

0Urcapital with borrowed capital.,
At the present time. the banks will

bids each*naming the «ame

raj. b^f^^bamu g
^
rate oL interest. same rate. We all
In-some cases in
bids-named the
bond

the

be dozens of lots of school
being offered by the various
who carry that type ' of
merchandise.-Naturally they

may

bonds

dealers

business

loan up td 90% of the face value
of school district bonds. Thus, on
of

naming

bids

several

see.

do^^

are

must

j*our

int0

fall1;^®1^pay.« a

bond due

terms of yield.

return

an
or

^Josem con^ar^Jie

Fd^'a:

10 years and

rating,

carrying
investor?-may'
yield of 3,00%/

of .rec1ei?lj2^.i?fcs

review

the

Notiee of ^ale

mem-

material in

to the more liberal yield dt 3.50%i
Actually he mighf
dollar price for tfye
it carried a higher rater of

1957 we were; paying

summer of

*k%
%

pressed in
an

they all

•

and

/untii:;,quite.

rJcfntly

we
e taking
"interest loss?/on many issues

Ag a

5 Si

-,Tile.:TiBie;4o Borrow *

Mention of interest ratesvprobably raises .-a question, in your

™^

dif-

minds.vYou are probably wonder-

^7 -11-?,ing -whether;

you

tshould, borrow

^rence in< thfi^blds ^ou!d .come "/e - w_ einer, you ,s«ouio, oorro^

^ *** ^

y°eldng

Invitation

"""" only logical Hitfe bttt onefigroup "'™ .answers on monetary, prpo-

^Z
to avoid the h^'^
? 7
:;df $11T.60l>€fr:^-bond,
•

separate
dollars

pie

maturities

in'terms

of;

have adopted the sim-

.Jpir.-i-

•

i;,

months of last year are burdened

J/.
^
vvith the highest interest rates we
^That; isrfheory and tneory does hflve sepn fm. more tha» 20 year*,
rvi-or'tinp
have
for morp fha^ ^

expedient
of
using
yield;in a singe term embodies

•

always Wdta

which

not

the three elements of time; inter-

Sometimes

reviewed

the

record

school

;district issues sold in September,
substantial retail order in advance :ig57 when jnterest rates were ai
why you see an issue of yours, of your sale.; That group would .. .
,
the«*» arp som^ r»f
which we may have purchased at be inclined to pick a lower inter- ^ rates j f0un<j. 4 iqw
4 20%
ap average price of $1,004.10, re- est rate than a group which had 290% and a bid for 4Hk which
offered the following day at a list no advance orders^ And some;
rpWtAd in s^ntnmh^r thin
of yields ranging, perhaps; from times we make -bad .errors of vear the bids revealed these rates*
1.90%
to
4.00%,
The -weighted' judgement and name a rate which ***? the.bids reveated these ratra:
average of all these yields, less is'definitely out of line. In such
Continued on page
est rate and dollar

price.

That is

„

$1,000,000 issue we use.$100;000
our capital and the banks carryr
the balance. The present rate on/
that type of loan is 4'%.- If your
bonds carry a rate of 4 % or higher /
sunoosed^ they win.* carry themselves in a
lI,ey will carry memseives in a
a

always expect

the
same ' rate;" In'
theory all bids
should name the .same rate.
We
to

another $17.00 paiooservations. • •
■ r,/
y ^uai?n wbich would result; from;/aJld a! ' thlrd '$l6.50.' • The" third/^^of /i Those^^who were^^forcecFto build
pricing a
variety of issues/ and^
courge ^w6uldsfhaVeT the- winning and borrow during-the first* t«n

usnallv

may

Western New York issues. In that
case

ties

means

.-^tch^/.™^

the duties and powers
and

In
in

temporarily resolved by members having a
withdraw and pass two or three majority in interest in the account.
Pennsylvania issues. Or, refining The agreement contains an escape
the subject a bit further we may clause which permits a member
to withdraw prior to submitting
find *we
are
overstocked
with
the bid if he cannot agree with a
Long Island issues and short of
majority on the bid price.

cumstances

from

■

syndicate agreement is For another 10 - year bond" with
which, upon execution, BAA credit rating -two
commits each member lower—he may feel he ;is entitled,

respect to that
issue. The agreement

ager

members

bonds to offer and another group
of

sejially

voSr issut^stm
your
issues;^nature'

informal
to learn

syndicate
historical

with

need

The manager makes an

formally

in: Illinois

ot
of

which

'in' talkin«
some sch°°l' ti.mally. employed and having a.
business, officials/ J have learned ^
ofsecurities^ for s^le.,
thaf.thoy, were' surprised iand,.^ ^hjeye . t^Su we .;suppiep,ent:

v°exneet
bond

vear

^anv
Many

fairly well-defined "price
relationship
which
is
J best ex- , W

town obligations

who

five

credit standing. But

in Pennsylvania

to the disadvantage of our sales¬

of the

bltrarily4with respect to matters
not specifically assigned.

ing overstocked

men

The

handles the paper, work

school district

rela-

operations but he may not act ar-

suitable

preferences

all those

try to maintain
sometimes

offices.

merchandise

needs

customers at

short "curred whlchc also. must cdme out,

for

accept;

not all bear the same interest rate£.loan and.., we will."realize a so-I
are delegated to him to facilitate and/all do not epjoy the same
^
called) "interest profit."
In the"
,

pass you by but for entirely dif¬
ferent reasons. Take our own case.

will

for the group and certain powers

sometimes

also

the

formed

manager

Specialized Dealers
We

are

they

tur.xT>r

special file which carries

past ten or 15

would not think of stocking your
suits,

record of all your issues for the

gowns

snow

investments

periods

When you advertise for bids we

complete faith in your ability to
cdminister the

,,,

"
.

•

188

Volume

Number 5788

The Commercial and Financial Chronicle

(1675)

; make other enterprises lose money

;

//andYshripk.
Thereby they are
f continually shifting control of the
•

Author and Economist

of production into the
hands of those businessmen who

•.

;\'are most successful in filling their
V wants. " Under .capitalism
private

Noted economist,

formerly leader of the "Austrian School/'
cites advantages conferred by original arrival of capitalism in
broadening production and uniquely serving : the consumer

factors

;

By i<udwig von mises*

/: property of the factors of prod^c*7tiori
;:

"who is the real boss-'—which truths

owners

are always, disregarded
Citing Russians' linking of liberty with
poverty, points to vastly higher standard of living in free

social function.

The

en-

are

mandatories,

were, of . the consumers and their
/. mandate is revocable. In order to

by the socialists.

■

frepreneurs, capitalists and land-

those whom patristic and scholastic authors as well as British

legislation from the 16th to the 19th
centuries referred

disappeared.
in

prpvidejl .by laissez-faire;
"night watchman state/'. Stresses capitalism's importance

the

providing medbfpr accumulation a.d inMStmentaf capital..

Concludes there is no

accuhiulated* cap-

v.ital.^It is.

fl1''"-r.

c-iiv

whjch lt be-t fills lhe wailts
consumers.

oI the
The- markef process is

trons,
under

Markets, that niepns pabuyPrs^consum.ers. There is

capitahsm only
wealth, ;t(x serve
better

one way

.tiie^onsumers

-andcheaper ^an

elects

the

ranks

detective

for/ the

stories

crowd

but also books for discriminating
readers.

r ;

-Y

There is

ptber

price to

corporations, the

for his independence;

pay

there

are

prjzes

that

this - universe no
be won Without
sacrifices. But if a man Yis prepared to pay the price, he is free
.to deviate from the ruling ortho-

tkexhop and /he factory doxy

owner or,

cus-

peSri!u*S°i.u^
Within

inevitably from the

poor—

,but also

a>d^fly- repeated .plebiscite and it
-

for.

n.i!

;

—daySy-a&Mo-longr for the totalitarian utopids.
■\:i: ■

ii! those lines in

iv.v

to lament passing of goad old

reason

and again

inyest it

necessary

the

publishing trade
publishes not only Westerns and

second important difference.
In the political sphere
toners. This radical change was there is no means for an indivireflected in the emphasis laid
by ^uaj or a smau group of indivibusmess on markets. What-busiduals to disobey the, will of the
ne§s needs first of all is markets
majority. But in the intellectual
and
again
markets,
was,
-the field
private property makes rewatch-word of
^capitalistic enter- bellion possible. The rebel has a

^^he rich," it is not sufficient to have pr^e.
once 'saved "and

Shows how freedom is

countries.

the stout, and the

lk?4!new workers of business not
settinS
free

only

Their scions became

can

neo

orthodoxy.

What

WOuld conditions have' been in

long time,, no- of propertied* peopIe^fKose- "who representative of;
/i^-sharehohib
eomnionwealth for hereFormer Concepts of .Liberty ::>> body cpitld think of another or^er,^ do not: employ their-property acf/'?'/;be ,Pre^ent, is the bpss. But tics like Kierkegaard, ScWoperi/ At the^nd ^f" the 18th renturv a state of;affairs that could feed: cording to the orders given by the
th^ mastership is merely apparent j^auer, Veblen or Ereud? For MoV
epq .01 xne iptn century
.fhAoP' nnnp wrpt/>hP5 • Thprp mihiip r
Knoin«W
tKo^ovW
a

there

tpreyatled

ent from

twp

what-we

have

•-

*■

■

the hands of

.and
a n y

dem i

a
privileged minority the climate, of titlje1 frpe economy
t^e; hands of the people,, among'the public people prepared
Adult, franchise followed in the to aid and support-them. What

into

application to Y

the

quest. .The

; a

fairs.; //It
i d

-;given jhe jand; to /heir paladins, pf

f £f

Thesev aristocratsY

books

the

Ludwig

ronage^of consumers '.buying! of had paid

von

Mises

Inemser,

What the Greeks called

<lay

called

people^-f6r9whom tE aenrJ^ment.
' "°h 6Ve
?.01 wnoio- tppre

present-

government

these^ conditions maJiy VIts.m^tn Sohiev®*
?rorm S he ownTrHi

under

?rer'-&M&Z .^macy
.cl.t,ze.ns had
that

Stv ofUtth°iigf^h^e
moccoa

unprecedente?
masses
was

the

SiSSBla ^rpduct:Ptfte Jhd^

by "the

figniy:?£.ihf-,.fuU:rght.

terminology,

coin

dimoc-

in the light of

racy was,

,/omers P the processing rindus- drppped,'/he Average length of
^ies which,'.under t}ie,guild sfys/ /ifeY/was/ prolonged,/population
tem' were organize^ on a corpor; multipliedand the.overage com-.
ratiye sphemei YThid scheme Fas; mon/man/enjoyed amenities of

"at

to discover

name's

after the/fourth centurv B

!cm to

was

some'

•

vitiates

What

(

thp

'• Fictions of the Socialists

entirely

critique

cialists' economic
italism

their

failure

otMVV

*v>

wets

a icch-

irretrievakjly lost.
They=,hen,oSned. the - passing of
this golden age, but
they did not
know of any method of
returning
to it.
'////•

i. '•••''

by the people is an attempt to arrange
constitutional affairs ac-

that the profit system forces busi*

cording to the model of the mar-

their dealings with the employers
unions' proceed'as
the
if only

ket, but that this design pan never
be fully achieved. In the political
field it is always the will of the

ness

to serve the cohsumers.'.In

maljce and greed were to prevent
^hat they call management from
paying higher wage ratesr Their

IP ine 7 v"'zJ
loiauxy.01 (me popular
1\
■
•
-Thp

■

rommon

fnan

was

...

the substitution

mechanical

factory for

of the
the more

•

This announcement is neither an offer to

securities. The

Ipso

wak"
^
ul'' although, it
'mtnTlnl
y anI llteraur7
tion'nf thp lan^prT38
a
a'hd sornpfimis
aJ-st^cr-acy~*
tripifrt-tl nL lr of urban paIppps noaJncf +hi ^
^eir Pnvl"
n

fhJ SSS.

gehtry and.. wants Of the well-to-do. But the
?-S SUSc^e uir} factories produced cheap gopds

I what
bSSm freedomfor all,
minnKtv nf
S ^
' for
>
^
^
people.

fOF the many. All that the early
factories turned out wds designed
to- serve the masses,', the saWe'

thpv

'
;

•

the

term—no

ods of agriculture and

^as increasing,

artisanshin

^hese

Of the existing "order of

jgn

»£

•

by Prpf&sQr Von Mises pre*ed_bef-re the Annual Meeting of the

Mont

Pelerin

3«pt. a

Society,

Common Shares
(Par Value $.25)

customers who

;
.; ;

V-J

/Price Net Asset Value plus 7Vi% of the Offering Price
C :

;

(in'single transactions involving less than

$25,000.)

Princeton, N.

1958.

J.,

being offered to the public through a £roup

of dealers
Inc., as
Managers. With this offering the Fund initiates a policy

are

managed by /he undersigned and .William Street Sales,
Dealer

qf continuously offering new

shares.

Copies of .the. Prospectus may he obtained in any State only from
such of the several Dealers, including the guilder signed,
.
as

are

may

lawfully offer the securities in such State.

buying .determines what has to be

LEHMAN BROTHERS

wl?f,«"***• *" :buyit!f what.
511118 them bfist> they make some
f

enterprises profit and expand and
■

of
p.

ITVfalthus, An Essay on the Principle
Populqtipn,'2nd~e6., London 1803,
531/

supernu- produced, in!what quantity and of

|a^x ^vltotheUS'

"always right.",
left by the pre-capitalistic meth- -Their buying Or abstention from
room

■

Scudder Fund of Canada Ltd.

sense

solicitation of an offer to buy these

'
;

strata that worked in the facWe must not condemn as
hypo- tories. They served them either
crites the men who in
those' ages by supplying them directly or In-.- •
praised liberty while th'ey pre- directly by exporting) and thus /.\
served the legal disabilities of "the
providing for them foreign food
many, even serfdom and slavery, and raw materials. This
principle "
They [were! faced with a problem of marketing was the signature of ;...
which they, did not know how to early capitalism as it |s of pres.- •
solve satisfactorily. The tradition- ent-dayx capitalism.
.The
emal system
pf production was too ployees are themselves the cpsnarrow >for
a
continually rising tomers consuming the much,
population. The number of peo-; Sreater part /of all 4°°ds propie fpr whom there was—in the duced.
They are the sovereign

full

nor a

ISSUE

NEW

rfpfpatinfj tKo

sell

offer is made only by the Prospectus. '
.

vfS

Primitive and less efficient meth- .' J
0f the artisans' shops. This is
„ &
a rather - superficial yiewThe - f.
•
characteristic feature of eapital-.
a!
ism that distinguishes it from pre.- •
capitalistic methods was its new - •
principle of marketing. Capital/
ahsnlu+iom
T1Sm fowe,r
ism is not simply mass production,
cont/npntal
-pa
bu* mass production to satisfy the
mainpH
T^p£rfni?f ^ princes re- nee(ts 0f the masses. The arts $nd
flirts
Onlv in
c?^~ crafts of -the good old days had
o
Netherlandc riiH
fhA
fr^t in th® catered almost exclusively to the ; ;
Was

about

grasp

thg the sovereignty of the consumers
dompcracy in whicp in the market economy,i They see
every penny gives a right to vote.
oniy the hierarchical organization
It would be more correct to say of
the various .enterprises and
that/ .representative
government piants and are at a loss to realize
market js

But then came capitalism.rIt js
customary to see the radical innoRation that capitalism brought

VTKA

.vr

mnrp

;

late

yrr-*'

tare oi .the pafet'

the soof cap-

majority .that prevails, and the
.nunprities must yiejd to it. But
shortsightedness does not* see any®
■:
>"< ■
epmmon man was.mp business caters not only to the de*-sires of the majority.
It serves thing beyppd tpe doqrs of the fa(>
^ger'a"dSdg/Whad" J*
satisfied with the crumbs that fell also minorities provided they arp tory. .They and their henchmen
pot so insignificant in numbers ag.jtalk about concentration of ecofo become negligible. The garment nomic
power and do not realize
industry produces clothes not only
;
'
a
'< .•
for
normal people, but also for
3
Continued on page o4

•h
-Zui
.£
V
—•
•
7
community in. which the inifhtviifpnst thflm is nn .vflrant:
:
mighty ^feast there US no 1 vacant tVnn
meteques or slaves. „Av,Ar mY Kim" anH that "sh^ i%ik
coyer foV him" and that-she tplls

masses jjvere

economists, I ~ think first by
Frank A. .f etter, that

gov-

It has been observed by eminent

was

^u^^oh^^mfhe^^vM

G^kS nnm.n JvLrl
frledom ^as^not SSliS E

statis;- •ipgous '.power-" in - the f ielci of
ernmpnt. He became a voter.

any attention ,to

ancient

higher
these

•

authors, file study of which

were

rived
the

was

-de-

e a

victorious; kings had wanY toiling for >the; sole benefit

wake of industrial enfranchise- would' Marx have/done withput
^parasitic leisure class. They meat. The common man to whom .hisV''patron,
the
manufacturer
5 lords r in
labored Under the delusion /hat the market process had given the Friedrich Engels?/., /
; * ■
^fhe-literal meaning of the word as the factories had-impaired the lot power, to choose the entrepreneurs
//^/:
'r" "
'
/they did/not depend on the pat/. of the manual .workers. If they and capitalists acquired the anaIII.-

conduct of;

political

the

„

,aca-i

without f

k W. O S v;

purely

could

private

cpneep-/,

o ns

feting

work only because
property made contempt
majority's /ways possible,
1*1
rulers-knew was tp. keep >! them plants that cater,to the luxuries of consumers.
-Only a few or! these separatists
quiet by resorting to force. /;: { w the few never attain big size, i/
.It
was, this - great
(economic were themselves economically inh
/ .7 J7 fl /f •- .7 J"
I 'j.1J The shortcoming of 19th century transformation that changed the dependent enough (to defy /the
'V
•'
:J
'
-i
I ;i historians and politicians was that face of the world. It very soon
goyernment j and the /opinions' of
Arrival
of'Capitalism
: E,r* they ^failed :|o 'realize that the transferred pqlitipal power from tkelmajbHty/ But they found1 in
TViA
iooni+olit«l-iAv etrofnm
11
state.

fjrst of

.these

v-1 i

/he

7 erty and f loe'-V
/ dom. * '/ '//-/K
TJie

supremacy.of

still less of' giving them a share
self-styled7 inteilectiials, f acquired boss, '.and ^ thp -_maniifacturer is
the conduct of the affairs! of yahd
ji preserves bigness only" be? done for if he does not outstnp
;1 The Yonly 'expedient> ;the cause it works for the masses.; The' his competitors m best serving the

/-|n;>-.re-£
erring to jib- ?!

today

net, v Courbet,
Walt
Whitman,
coiisumers., Riike G1f Kafka?-In all ages pioneers of new ways of thinking and

the

The consumer is kiqg, is flje real

October 21, 1958.

The Commercial and financial Chronicle

Thursday, October 23, 1958

(1676)

The recent results of our Ameri¬

Productivity
Manufacturing Industry

New Measure! oi
For

By ALLEN W.

President, The

RUCKER*

Eddy-Rucker-Nickels Company, Cambridge, Mass.

study shows we do not achieve
"labor saving" from new capital investment in the conventional
meaning of that term but that, fortunately* we achieve "labortime saving" or higher productivity. What occurs* Dr. Rucker
finds, is an upward wage-rate trend that more than offsets
savings achieved in labor time per unit of product. The man¬
agement consultant: concludes: (1) upward absolute Unit
labor-cost trend would have been higher without new equip¬
ment investment; (2) industry has consistently paid to labor
in 19 successive census years 39% of outputrvaiae-—delpite
huge investment increases; and (3) competition has forced
prices to follow closely the trend of unit labor-costs and not
the higher hourly wage-rates so that the consumer receives
labor-time savings, and management's reward is larger output
marketed and expanding "management margin." Explains how
economic, not physical-unit, measures determine best the limits
Industrial research economist's

can-

Another Phase „of the

"all manufacturing" industry

.Matter;:..

I have; often, had strenuous.? ob¬

"Very, weR; ~we; did not retiuce
unit; costs and We didnqt*reduce

payroll. But you may be sure
percentage of pay¬

are

the

closes.

roll: to

surprising, possibly-somewhat jections to these- facts; there are
disconcerting, as Exhibit 1 dis¬ those who, after seeing the figures
I need not point out that
research

similar

businesses

individual

well
cause
a
change in top management policy
as
respects capital investment.
Among our own client-firms, the
trends of pre-tax profits and de¬
preciation costs are w a t c h e d
closely for evidences of over-in¬
vestment

may

of under-investment.

The Measure

of "Labor-Saving"

in their
less

own

argue

businesses, nonethe¬

somewhat

follows:

reduced the

We
manufacturing mar¬

value of output.

our

added to

our

gin by 'labor-savings! even if our

management spent the added mar¬
be noted that not all improve¬
productivity are due solely to
more
efficient
equipment;
management
also improves methods; and does some¬
thing to improve employee teamwork. We
presently have no. reliable means to de¬
termine
specifically how much produc¬
tivity improvement is due to (a) better
tools and equipment; <b) better methods;
and <c) better' teamwork.
We do know
X It

may

ments

that all three

are

gin before it could be translated
into added

Does

merit?

profit." ■■■'.;

this

It must

contention

have

any

certainly be

con¬

sidered by the management of

dividual

businesses.

in¬
ex¬

essential and that per¬

ample, I have prepared another
Even though manufacturing haps teamwork incentives have had too
little emphasis' from - American manage¬
chart showing the American exprofits do not show it, American ment generally.

has

made
labor-;
unit of output. Exhibit 2

industry

nonetheless

2 See

rime per

raised

had

Production to Index
man-hours

labor

(1947-49

All U. S. Manufactures

•

—

100.0)

Index

180

144 whereas
rose

DEPRECIATION AND PRE-TAX PROFITS ^ :

with

output► as

by the FRB

VALUE AND VOLUME

PERSPECTIVE of PRODUCTION

(b) physcial volume of output. By
1956,

page

EXHIBIT l

graphically shows the record of
(a) man-hours of input relative to

measured

i Continued on

Bibliography.

substantial savings in

some

only to

Index

capital investment.

113

(both

based

1947-49—100.0).

verage lor

the

represented only 1 % of this firm's
; This means an improvement in
in
the
United
States, are not two and one-half million dollar productivity per man - hour of
primarily interested in economic yearly payroll. It also developed 26%. The reciprocal of the pro¬
research. They are primarily in¬ that shortly after making the new
ductivity index is, of course, thev
terested
in
machinery purchases, the firm index of labor-time per unit of
negotiated a new labor contract
avoiding
product. That index by 1956 had
losses and
calling for a 5% general wage fallen to 78% of the 1947-49 aver¬
increase for all employees, i.e.,
making prof¬
age, a labor time-saving of 22%
"across the board." That increase
its. Hence, the
in less than a decade.#
task for or¬
immediately added $125,000 yearly
But
and this alone is one
to the payroll, or about five times
ganization
of
the supposed "labor-savings." The justification for a continued high
economic
re¬
level of new investment (within
net advance in that firm's yearly
search be¬
proper
limits) — without this
comes
a
task
payroll is readily seen to be $100,labor-time saving or higher pro¬
000, This is a typical experience.
of applying
ductivity, this nation could not
e c o n o m i c
have produced the goods it did
:
Offers Fool-Proof Laborknowledge; to5,
without a marked lengthening of
:
> Savings' Test
p r a c t i c all
the work week.
We simply did
■;
In a time of sustained wage-rate
business prob¬
not have the necessary labor; our
lems.
These
'increases, there are ho "laborsavings" unless the yearly payroll employment in manufacturing
Practical

businessmen,

160

at least

140

; li¬
es
Tt

a
o

—

120

100

220

problems are
those that di¬

Allen W. Rucker

rectly affect the ability of man¬
agers to avoid losses and to make
profits.
As

specific example, I shall

describe our method of answering

tended

ample,

and

not

greatly different

in such countries

'180
'

Prr-T*x

wholly

No Gain for Profits Depicted

"Certainly we pay for new
equipment from 'labor-savings'",
one
executive said to me, "we
determine the cost of the equip¬
ment fully installed and ready to
operate; we know how many em¬
ployees are displaced and the total
of their hours and the payroll cost
we
save.
For example, we are
just now spending $100,000 for
new machinery that will cut
$25,000 a year out of our payrollpaying for itself in four years,
easily."

net "laborsavings" in this period, they added
nothing to profits. In light of the
increased volume of output
(shown in the Upper part of this
chart) and the increased value
of the output (also shown in the
upper part of this chart), pre-tax
profits should have risen in any
case
short of complete manage¬

**OnIy

portion of all new capital in¬
industry has as its sola or
the reduction of laborand "labor-savings." Much of it is

vestment

principal

made

simply to replace worn out or obso¬
equipment,. or to make new grades
qualities of product not possible on
existing equipment, or to make new prod¬
ucts
never
before made, or simply
to
expand-the output of old products.

lete

1958.

1 See

Bibliography.

-J-

*
o

■

120

c
i

rAito
'

iCAlES

100
47-49

SOURCES: Production Value, from U.S.
factutm Index computed.

Census and

Survey of Mariu-

Production Volume Index from Federal Reserve Bank Board.

Profits

Pre-Tax

for

are

all

Manufacturing Corporations

revised, August 1958 by the National:Income Division, Office
of Business Economics, U.S. Dept. of Commerce. Index com¬

puted. ; :
Depreciation Index computed
"Commerce.

■ v
r'V ' '■
"
from data of U.S. "Dept.' of

NOTE: Production Value figures for 1955 and 1956 are preliminary.

.V-'

PERSPECTIVE of PRODUCTION-WORKER PAYROLLS
VOLUME

of OUTPUT with

EXHIBIT 2

MAN-HOURS INPUT

All U. S. Manufactures

(1947-49

100.0)

As this makes
been

cost

clear, there have
"labor-savings" in the

sense

that the absolute unit labor-

trend

downward.

On the

contrary, it is upward. What we can
say is this: that without the im¬
provement in productivity trace¬
able at least in part to added in¬
vestment

new

equipment,

would have had much higher unit
labor-costs than we did have. In

short, with no improvement or
change in productivity per manhour, unit labor costs rise in direct
proportion to hourly wages.2
SOURCES: Payrolls of production workers

purpose

and

*An address hy Mr. Rucker before The
Japanese Economic Research Organization
Study Team, Boston, Mass.,; Sept. 18,

any

ment failure.

costs

Upon questioning, however, it
developed that the $25,000 "saved"

were

■'

<*
-*

put.

convincing
there

I'roAtfc

•

'■

8
!

-—

sider

160

Great Britain

proof.

200

Depreciation

keep pace with the
percentage reduction with new
equipment exceeds the percentage growth of the labor force through¬
out most of this period. Only with
payroll increase from the annual
more investment per worker could
general
wage-increase.
In
the
we have achieved so high an out¬
United States and Canada, for ex¬

Nonetheless/ despite that con¬
and Germany, the average annual sideration,
there were not any
rise in wage-rate is slightly over "labor-savings"
in
the conven¬
5%
compounded,
doubling
the tional meaning of that term. This
(1) Does new capital investment
wage-rate level about every,: 14 may be seen at a glance in Exhibit
in equipment pay for itself from
the trend of the total payroll
years. Unless the average annual 2
"lab<h>8aYings? "* *
company-wide "labor-savings" are exceeded both labor-hours input
(2) If so, to what extent? If not, in excess of
and the volume of output.
5%, there will be no
By
then what becomes of the claimed
net
"labor-savings" to pay for 1956, total yearly wages x>f Pro¬
"labors-savings? "i
duction Workers in American
new equipment.
(3) And, if not, what other con¬
This is not a hypothetical con¬ manufacturing stood at Index 170.
siderations may nonetheless jus¬
This fact is simply a reflection
tify or compel added investment clusion; I have applied what may
the
be called economic research for of
development previously
to improve efficiencies?
a
good many firms to demonstrate cited, the average yearly general
For
this
example or "case- that this is one of the hard facts
wage-rate increases in the United
study" I shall use the over-all or of economic and business life. Let States exceed the
improvements in
"all manufacturing combined"
me point out by means of a few
productivity; they
more
than
data for American industry, all of
simple charts what has been hap¬ counter-balance the savings in
it as given by official govern¬
pening to manufacturing industry labor-time per unit of product.
mental agencies.
These over-all as a whole in the
United States. It is well to see this in precise
data may be more familiar than
At the bottom of Exhibit 1 appears figures
by years in individual
would be the corresponding data
the trend of the last decade for businesses; hence, I prepared Ex¬
for any of our client firms which
(a) pre-tax profits and (b) depre¬ hibit 3 to show how this method
we have studied in the same way.
ciation costsf (the cost of capital can be used. The data here are
Considering now the question: usage).
The well-known high those lor American manufacturing
"Does new capital investment in rate of new
capital investment has industry as a whole. Column (a)
equipment pay for itself from led to a marked rise in deprecia¬ shows the steadily declining index
labor-savings'?", I find that the tion costs; counting the average of labor-time, i.e., man-hours per
conventional, answer here and in for 1947-49 as 100.0, the Index unit of output; column (b) shows
most other industrial countries is stood at 232% in 1956. The trend the
rising index of average hourly
an • emphatic
"yes!".
Industrial of earnings on the same basis wages, and column (c) shows their
engineers and factory managers brought the pre-tax profit index product—the index of labor-cost
can usually offer what they con¬
to only 159% in 1956.
per unit of product.
three Inter-related questions that
affect
the
ptofit-ahdrlo&s
per¬
formance of every busihess:

1 '

from U.S. Census and
t These

depreciation

costs

include

ac¬

celerated amortization charges on "emer¬
facilities" authorized by the Office
of Defense Mobilization. Our studies-have
shown that these are- net a material factor

Production Volume Index from Federal Reserve-Bank Board.

gency

accounting for the abnormal- rise of
depreciation costs relative to Production
Value and

Profits.

are for all manufacturing, only,
Survey of Manufactures. Index computed.,

Man-Hours of production workers

'
-

are for. aU^ manufacturing,
°nly, from U.S; Census and Survey of Manufactures, Index
'^computed.'"
--'
"
:
:
<
:
:
,

Company

Volume

188

Number 5788

The Commercial and Financial Chronicle

(1677)

effective promotion in the appliance
'a

Te Hold Annual
:

ment

America
t i

m e e

The

will

Meeting

Association

its

hold

Natural Gas
The

Home¬

stead.

a.,

October

through No¬
vember 2nd.

ingle,

Jr.,

Executive
Vice-P

•'

the
■&

Gamble
will

Co.,

W. Olin

Nisbet, Jr.

liam C.

Jackson, First Southwest
Co., Dallas, President of the In¬
Bankers

Association

the

Southeastern

Group, whose members are located
in Maryland, Virginia, North Car¬

Hemphill, Neyes Co. lo
Admit H. J. Kenny, Jr.
James

Kenny, Jr., member
the New York Stock Exchange,
Nov.

1 will

become

Hemphill, Noyes & Co., 15
Street, New York City,

other stock

will

the

New

York

and

exchanges. Mr. Kenny
from
partnership in

retire

Emanuel, Deetjen & Co.

R. J.

Simpson, Jr. to

Address Phila. In v. Women
PHILADELPHIA, Pa.

Robert

—

Simpson, Jr., Assistant Invest¬
Officer, Fidelity-Philadelphia
Tru=* Company, will deliver a talk
ment

"Violence in the Middle East—

A Threat to Oil?" at the second in

the series of lectures

Alabama Gas

;

Committee

ment

the

Invest¬

Club of Philadel¬

Women's

in cooperation with the Fi¬
nancial Analysts of Philadelphia
on Monday, Oct. 27 at 5:30 p.m. in
phia

the

Conference

Concourse

of the

Room

Philadelphia National Bank,

Broad and Chestnut Streets.

Mr.

member of the
will moderate
the entire series covering various
Simpson,

Financial Analysts,

aspects of the investment field.

South

Jersey Gas_A——Gas Improvement
Washington Gas Light
Washington Natural Gas_

Mississippi Valley Gas

Mobile Gas Service

Western
months

gain

Of
not

course

fare

gaging

Fitzpatrick Opens
J.
a

offices

from
New

York

name

Co.

Fitzpatrick is en¬
securities business
37

City

Wall

Street,

under the firm
J. Fitzpatrick

Edmond

Mr. Fitzpatrick was formerly

with

which

compares

McDonald, Holman & Co.

AREA RESOURCES BOOK
New book

explains why

much

industry.

UTAH

Write for FREE COPY
Box 899,

POWER

||l

Salt loke

•

less clear-cut than those of the retailers.

Basically,

collected

the

with

D«pt

City 10, Utah

Serving in
Utah-Idaho

Colorado-Wyoming

•
George Meany

still

under

before

bond

the

In many

Meany and his followers insist

upon

favored status for themselves in the economic and

conditions.

legal systems of the country. They could hardly
or get more as a
majority political party. \

ask

/:•

cases

connection

earnings

with

rate

FPC for final determination.

wholesaler's

troubles stem from the steadily
the field, which in turn reflects the higher
cost of wildcatting and drilling.
Proven gas reserves are still
quite ample but it is frequently necessary to drill deeper wells

rising cost of

end to democ¬

weather

a highly
increases, nine declines and,,two
no change.
Results range from gains of 39% for Tennessee' Gas
Transmission, 33% for Texas Eastern, and 24% for Columbia
Gas, to declines of 16% for Southern Natural Gas, 12% for North¬
ern
Natural Gas, etc.
Obviously the pipe lines were benefited
less by cold weather than the retailers since the amount of gas
which they can transmit does not vary a great deal.
Also the
earnings reports of the pipe lines and integrated gas systems are

are

dent of AFL-CIO.

such as those in New England did
others, but the retail group as a whole
companies which report only on a calendar year
average gain of 27% over the previous period,
with an earlier rate of gain of about 10% per

amounts

vernmentp/That

racy."—George Meany, Presi¬

lines and integrated gas companies made

increases which

mean

mixed showing, with 13 showing

include

po-

retailers

gas in

and

FIT, Banks Place Debs.

will be

The Federal Intermediate Credit
Banks
a

are

new.

offering itoday (Oct. 23)

issue

was

sold for delivery Nov, 3.
from
the
financing

Proceeds

approximately

used to refund $159,000,000

debentures

1958.

maturing Nov.

m&jjfa,

$118,000,000 of 3.60% 9-month de¬
bentures

dated

Nov.

1958

Form Underwriters Sees.

and

maturing Aug. 3, 1959. Priced at
par, the new issue is being offered
through John T. Knox, fiscal agent,
and a nationwide selling group of
securities
It

was

dealers.
also

BATON

Reymond
a

that

formed

been

announced

ROIJGE, La. —Under¬

writers Securities Corporation has

with

offices

Building

securities business.

engage

Officers

reserves

tion

under

have been found in Canada but the

Prime

Minister

Diefenbaker

has

new

until

James

already outstanding with a
maturity of Feb. 2, 1959 was re¬
opened for a total of $10,000,000

and

George J. Bongiovanni, Sec¬

retary-Treasurer.

1958 REVISED EDITION

been

dubious about

selling large amounts to the United States for fear
might be "giving away" a natural heritage. Gas is already being
imported from Canada in moderate volume and important new

OVER-THE-COUNTER

pipe lines

are

planned—one by Pacific Gas & Electric and another

in the midwest by Tennessee Gas Transmission.

The Borden Com¬

mission, appointed by Mr. Diefenbaker to study the problem, is
expected to file a favorable report soon, which may release gas
for export. Canada has bigger reserves than it can use currently,

Oft Which

while potential reserves are many times the proven reserves.

CONSECUTIVE CASH DIVIDENDS

Another hurdle for the proposed

pipe lines has been to obtain
of the FPC. The Tennessee Gas subsidiary, Mid¬
Transportation, is expected to obtain a favorable
ruling by Nov. 1 from the Commission, after a long dispute with
Peoples Gas and Northern Natural Gas over the issue as to who
should
supply the big demand in the area around Chicago.
Completion of these new pipe lines might mean that we would

Have Been Paid From

approval
Gas

obtain well

5 to 174 Years
—

over one

billion cf of gas a

day from Canada compared
being produced in this country.
This will be good news, therefore, so far as supply is con¬

with about 12 billion cf

cerned.

But the

decisions

over

methods

the

past two years have overthrown regu¬
cast doubt on well-established principles
and policies.
The major problem lies in the rather obscure lan¬
guage of the
Natural Gas Act passed many years ago.
The
latest and most important upset was the Memphis decision, which
was appealed to the Supreme Court last
spring. The high court
will, it is hoped, give its ruling before the end of the year.
It has been hoped for the past two years that Congress would
pass a bill clarifying some of the issues raised in earlief court
bill

passed but

was

hint of scandal in the voting.

lation.

"Any extension of Federal regulatory controls over the
prices producers may set for gas at the well-head will," he de¬
clared, "if not altered, limit in a most drastic way the growth
potential of our industry and the opportunity of the public to
enjoy the benefits of natural gas."
Despite all its problems the industry is making a strong
pitch for the consumer's dollar in the gas-heating field and in the
air conditioning field.

Lafgp, amounts

____20 cents each

200 up

orders

100

more',

your

firm's

printed on the front cover with the words
Of"

above

it without

further

15 cents each

name

will

"Compliments

charge.

vetoed

by President
Thus far
politics have prevented any constructive effort for a new bill.
The trouble is blamed in part on lack of cooperation between
the several divisions of the industry—the independent gas pro¬
ducers (largely indentified with the oil industry), the integrated
utility systems and pipe lines (most of which produce, transport
and sell oil at wholesale), and the retailers which are the final
link with the consumer public. At last week's AGA Convention
in Atlantic City, retiring President Robert W. Otto called for
unified action by all segments of the industry to obtain new legis¬

newer

—

COST OF THESE BOOKLETS
1 to 199

and

BOOKLET

PAGE

now

regulatory situation remains thoroughly muddled.

Court

are

being spent for

Commercial

Financial

Chronicle

Wm. B. Dana Co., Publishers

25 Park Place, New York 7, N. Y.

Please enter

our

order for

booklets of "The Over-the-

Counter Market—Where All Securities Can Be Traded and
Most of Them Are" and

accompanying dividend tables.

Firm Name

Address

in
are

E.
Kincaid,
President;
Babington, Vice-President;

administra¬

recently

the

Charles

issue

expensive rigs, or to go into off-shore waters and
lands along the Gulf Coast to obtain supplies. Huge

new

swampy

Eisenhower because of

offers

opportunity
to

than

■

decisions, in fact

area we

serve

rather

annum.

The pipe

the

would

the

latory

the

increases

rate

Kentucky Gas____ 112%

May 31.

some

well

(including some
basis) show an

western

E. J.

run

But Mr.

ended

reflected

/:1|

;

•

coun-

"That (a labor party) .would
fsegmentffpf/ the American- people, setting'/ v
themselves up in a class,apart,
/
had made up their minds (to/ /

the

mean::; one.

United

Laclede Gas

/ :

______

run

try and seize control of

South Atlantic Gas._

Service

litioal.party* That is just a lot*
of bunk.-.?%:I %//^

y'/

Rio Grande Valley Gas__

the

Edmond

posed to want to

non-

Gas

;

politics as
political party. Labor is sup-

carried down to nbt income

Brooklyn Union Gas_____ 20
Chattanooga Gas /____
*60

24%/: ;New Jersey Natural Gas_ ,17%
}Pacific Lighting
f37

____—

run

"Labor is not in

Securities

Analysis presented by the Educa¬
tional

government

of gas for house-heating.1

use

was

partner

Broad

members

season

government run by Wall Street,
by big business, or a government
run
by labor," Mr. Meany said. "We have no such
thought in mind.
We back candidates of both
parties on their records.
~

Atlanta Gas LighLC—50
:

*12

cold heating

[ ,//■ /

fThis

-f'I don't want

olina and the District of Columbia.

What They Demand—and Get

Vrecurring) gains. Following are examples of such increases, based
on
reports for the 12 months ended June 30, 1958 as compared
> with
the previous 12
months./-/ /.

America, will also be a guest.
W. Olin Nisbet, Jr., Interstate
Securities Corp.,.*Charlotte, N» C.
Chairman

revenue

/so that share earnings showed substantial (though probably

speaker. .Wil-

of relatively warm weather)
1957-58 which greatly stimulated the

Much of this additional

guest

vestment

its

However, the retail segment of the industry is not concerned
with these problems, and,it was blessed
(after several

years

foreign,

sales, of
Procter

continued

much

dent in charge

industry has

gas

r es

natural

inadequate rates of return allowed, difficulties in obtaining ample
supplies of gas in some areas such as the Midwest, and the high
costs of financing new construction..- /,. V- '>'.*/; ■•//■

Walter Lee
L

Industry Still Expanding Despite Problems

dynamic

rapid
expansion program despite a multitude of problems, such as FPC'
regulation of independent gas producers, difficulties over contracts
and rates raised
by the Memphis decision, procrastination of
Congress is passing a new gas law, long delays in rate cases and

Hot

Springs,

field, and'after long
by

annual

made

Arkansas-Louisiana Gas
is being marketed id quantify"' Once
regulatory problems, therefore, "full
speed ahead" should be the slogan.
V

E, N
C —The
Group of the Invest¬

Bankers

conditioner,

rafter Servel gave up the job,
-the industry gets rid of its

CH A RLO TT

Southeastern

air

successful

.Date

Gas

Managing Director* American Gas Association
New York

will

the market in

various

City

appliances, and increased commercial and
industrial utilization of gas—-particularly, in petrochemicals and
in store for domestic

for
;

generation of electricity from gas fuel. He forecasts an invest¬
over $30 billion—tripling present plant invest¬

operation. Dismisses fears of future supply

shortage with bright picture of known and unsuspected re¬
serves and with the vision of manufacturing gaseous fuel front

pointing
utilities;

monnltiflliif'hi'o

Ours is

doing but rather to be inspired to
do

even

better job for our cus-

tomers, stock

holders, em¬
ployees and
ties it is

serve.

midst

what

mi«^t' be

Revolutio^v—the

Research

iTic>5»t

Sumner fB^ter! Zt *■'.

„

iti

nt»

fi'olH

-findl

'fli niii

n^asonf Ur

oI+flinuM/i

'Tliiaofl

>1 _a

rtnlir

niTtintf

rho

hidn

ttapor' I riO

.onnre

oftio

nirtHeri-irr1

cmno

:,i

J..

t..".

■.

into the matter of employing;an

appropriate agepey to evolve

+!-»£•

-.1

-1

long-range research,

program

;

for

the gas industry.
v

:
The Board directed that, this* 66
av- result';>

dohe. -As,.

av has

shall

type

our

On the

broilers,

ovens

succulent cook¬
half the time or

for speedy,

ing—again

chance that

Jcgg

the balance of

petition is breathing down; our. .■.. Although the ziatural gas supply action a&7soon a^poSwe. ^
necks, there will be additional picture inay proyO nrigiiler tiian it ^ puf into effect riirider bur
can best explain it by saying that
transformations—all pointing to a as yet appears, We are "bt de_ par ; research program, it will
it is "infra-red" heat with gas— broader use of gas.
; ;%
;v; • -f .P£ncnng
upon
good, fortune.Call for the support of everyone;1and it not only answers, but tops, >
Po,
o,
'
■J A0.
^br our, future supply. ; ; in the industry, I earnestly jhope t
the competitor's infra—red burner
rcirocneinicais iroui'jyas ■■' (ir.vhfirim^nta oro' rminof -Snruravri +nbf fhic atmrtnir'i'! «niT viot.fnrfii•

cause

4some

to say,

"It's all fine-

Chester

raising

s. Stackpole

~ ✓

that I do: There
of

„

applications comindustrially and do- building

tnercially,

all*

you

?
.

in many, many

know we have
some
prob¬
assure

those of you, to whom gas
heat is a new concept, I

hut doesn't he

lems too"?

For

radiant

discussion

may

equipment.

the communi¬

privilege

mCnt of riches forCanada," witti

testing.
.deeper ^drilhngs wdl.increasingly
box or oven using forced donI am only hitting the high spots, favor, the gas industry, since the
vection—making possible baking of coufse. There will b| a hundred ps-oll . ratm tends to rise as the
or
roasting in one*half the time new wrinkles in modernity and swells go deeper
; :
now
required
in
conventibnal convenience and safety lntrpduced ^., improved methods ofree<
recovery
foods

the

called

nianufactufersof ih findl field ^thosdjpresratiy^ attaihabie. These

Thawing and heating of frozen
will be done in a heating

industry which does

not need to be told how well it's

as"almo£tan embarrass-

„

and water. Advises industry to become research

solar energy

cOvery

ment-—by 106# which would provide uniquely neiV methods

minded and calls fdr defense of priVate enterprise id
out that there no# are 515 non-privately owned gas

year-

ment need of

and economies of

^. •

significamt ecoiiomiic devel- Separate gas cooling cycles, all its potential .Of one end one-half op^enf since the InatfetrM JRe^o- '%
air cooled, which can be added to billion cubic feet daily. "Time"—
lution/ Industries ore 7i^aking the.'
the heating systems in the mil- not our Research Committee said
revolutionarv' d
v
mvi ■
r
lions of homes now using gas for this!
U.. VV
f
Ha,yard's
heating, will be an accepted, item
An interesting point about the; res'earch can be-cafried dii for' *■
for sale.
Besides the Arkla, Car- discovery
is that it apparently profit; In our competitive World,-' - :
rier,
York,
weatherbiister, and surprised even the geologists and; this means' that those who fail
■
Ready Power gas air cohditibners engineers. ; This
confirms once doinvestinresearch Will nof lohg • which are meeting with such'suc^ 'mbfe the fact that our estimates, continue to
make a profit!
cess
today—there will be other of reserves have always been on>.
At otir Executive Cbhferehfce
:
gas units on the market for. do-: the. conservative side.
)*
• |
'
this Spring JiM Comerford Pres- v
mestic, commercial rind iridiistri'al ' Besides the, possibilityof as^ ■ ident of Consolidated Natural Gas r i
usage. These will include the four yet-Urisiispected reserves, there is Company reconimended andHrill
new, types of gas air conditioners the possibility; that new and imHenrys President of Negea Serv- ' v
developed last year under;an, ae- proved drilling techniques will- ice . Corporation, enthusiastically
celerated PAR research program, enable explorers to uncover new,
endorsed, that the Board of Bi- ' -r
and now
being turned over to gas riehfes at greater depths than rectors of the Association. Ip6k

revolutionary changes

to soine of

Thursday, October 23, 1058

are ;-

compact unitsf.stor/ described;this, ne#- gas disr* *in

capacities

comfort.

round

Stackpole supports his glowing forecast of the gas indus¬

try's future with details

still in the States and which

under-Ithi^;in-'^"alread^ beginning to utilize. As to h

improved,

Mr.

tensive research efforts bf the Canadian gas reserves, most of
jncjas^ry„|n ^s entirety has even'
mianufacturerajand they'h be cpfti.yquVpyobaWy^w therreqetathe^
•petifive m style and price as~well" story abauta month ago;as superior
in performance^- • •
the discovery in Alberta of tfe fac(r> the consensus of
mapy ecoixCas heating .and
cooling will biggest gas well in history! The. 6nuiits"is: that -we;are; i&rrfmtly

By C. S. STACKPOLE*

refrigerators

.further

Foilfae
■'{*.

Chronicle

The Commercial dnd Financial

r(1678)

are

money

the problems
in adequate

quantities at rates we can afford
to pay; securing rates of return,
greater than the usually accepted
6%, is necessary, and will be more
«o, in the future, if, we are to hold
and attract more investors to our

securities. As President Otto and
other industry leaders have
-cated over the recent yeafs

indipast,

there is now, more than ever, an
'

mestically.
natural
With the radiant gas burner, wearing shirts, suits and dresses
we no longer have the open blue made from
gas, fertilizing our.
flame of gas with which we have crops with gas, wa shmg oiir
become so familiar. I trust we clothes and printing bOdks With
will always keep the blue flame gas,'arid' riding in plastic bodts^
as a warm symbol—but someday cars made from gas^but we iriay
it may seem as old fashioned as even be living in plastic hduses
the carbon lamp.
made from natural gas. V
And by the Way, what a gas
I^have been_ talking about sbme
lamp revival we're experiencing! of the pew .things coming in utili-.

again, atomic energy is.proving
to have . important applications.
In the-field of public relations, '
The prospect is that costwillbe increased efforts-are necessarycoinpetitiye—and oil shale source not only to increase public, ac- .- r
offer ah almost ceptance of gas, but specifically
inexhaustible supply.
;
.
•
to built inVbj&tOr cohfidbncblThbse
.

scientists, who $30fMi©h«l- we-.\^U"shbbt
have taken a long-range look into us to the moon by /68 will have
tjje future,* assure us that there' to'-cdrnfi'- moM^.iforhrth^f i$V^= -.r.„
wm still
be work for the'gas tors,... larg^j
#ill.
»

our-

Thousands of purchasers, for a zatiorn What^^about the ga$ mdug-eveh if Wbvshare.^ rduii :faitl^:|ih^dup ;futdre^^;
multitude of attractive and prac- try itself?
~
' v . i • " should Use Up the last, whiff of enough to lend us money andVbu^ vv
tical puiposes, are recalling the ^ lalk about jreaching: the^ moon! 0uf fossil fuel in the ehrttil Martin shares of^ our.,sMt^;Vfaise
)manThe gas industry has already done
Eiliott and Marvin Chandier fm-e- these funds, We will have to teli :
.

~11"

„

nlirfhl

-S 4-

rit

%*r\

4-i

^vl

1 XT r\

-*r

v*At*r

•'

•

Jf J

•

-i

1^.11*

£JL'

gether, five manufacturers are in- enough miles to lay a third pipe:
line to the moon!
panics is importing gas lamps;!
Future Capital Investment
weriave
we have never seen in our uisiury.
1x1 uur history,
from England. Gas lighting rates ;
Rv idfiQ the eas indmh4 Will
distributed < m ^re * economically ^ ^USt ^Iirgx;
;
•Certainly m the management leg- are being filed by some 01 our
By l»ba ^e gas mm^try^U ^ . electricity ^Ih fact' the cojfcmore useless: than ^gas. ilyihgv mu^
islative, safety, rate making, fe- comimlnes
to
encourage
even invest about >30. billionwaiting to
arid gas appliance manufacturing
leVCls—is about to initiate

a eon-

volvcd and one of our gas com-

eeritrated drive, the like of which
.mm

—

J? J 1

l\«r

rv 111*

atevery.p v
Ottd' has.
for more base
load

ather
lines, is being threatened daily-

unit The "flameless eombusUon"

totlay there are indicated to be
513 non-privately owned gas utihtie' u"

yvhlehiMy te bent

cTI^t1°"ce;

(While I d like to

to all our

say

badcess

problems, I bear
^Boss"

mind

K^tenng's . famous*

statement,

Tlie Pnce of Progress

Is Trouble."
years

from

day

familiar

items

conveniSce

.® 2®
* *

leaks

every¬

for there'

new

"ugLnlir of S™

methods will'

cookingy water heating; refriger- . >

ExMriirt

the th,

response to

VWiteldiW

smokeless-odorless

changes anvwherC in

^hcy ^twiee^s gireat

the^ cpri^

vp«j

pipelines, tlierd. will-' be
gas; (m<jre) autoniatjoh for greater efFori

incinerators will be. m use every-

eoidpri

within,

our

riht

oure

be
r,

°.r

ohhnrtiinities

reach •
.

Sales, ity goes withMf dating;
rrianri«

FfPons,e to changes any,Vhere in; vehtional stearii. power-plant."
system., /

tionn r
tionaiy chan"exi 11 other domdstie the
cnan&es in oiner aomesuc.
1

eiiginC arc shov^irig us-. tiie Way
^ opmion, ^/ disproportion
...
customer's meter WilL'ftrovitie •'•fd-"rdir^t'- Wrieratibh^df'"' ^iw^^^'shaf^.-.jpf-'gas^-utriitms.^oni^and

there can be ^0ck steady tlhought instantaneous crir^ht^pm^lis f(^;ahah^effi^
pressure arid (^dstaintr
>.>
quality gas

occasions that the-;comi«r£itively

being

eas

®ys^ern automation from city. gate'

th*™

app lances.

Soon,

and

than

J ;
.

po^je fcowsibhrahd'tesik^

free, no-joint distribution syste.ns.

and safety,

There is rid flame-out

now,

instead of being novelties, the ap¬
pliances of the "future" seen now
will

Sitaateriala

or^iap^i into;

There will be equally revoiu-

A- few short

mate ta

builaing activities including ;

nnrifirt»i'inDr

nrif}

pxnandine

>eahSj continuing, and expanding
our: advertisihgt

arp

But they • will

unless We- out forth'

ui,uess' vi-;iJUl -1 r.

and;promotipnal

efforts, as. exemplified f by Play^-;
houae 9P pn.feleyisioii,: oUr Gold
cfoW nmordm

whete,

use.

clean
No Longer Novelties

tion
.

Commercial

WUu.

Operations, maihtteriahCe. ^

sizes
will
aftd. construction
strong tend- morrow.
planning Will
v
r
b
ency to.camouflage residential gas
common use before long.
benefit from accurate, long-range
cooking equipment into its surGas wasliet-dryers will be still; Weather foreecasting;
!
•
roundrngs—even the free-stand- more• efficient, and designed for
-

.There

will

-—

—i.—

—

irig ranges, which will be in the spacer-saving. Gas water-heaters
Nd Gas Supjfl^ Scarcity
anihority.
The majority (of will be much, much faster and
What about gas^ supply? Prof
ga^ ranges) sold will be built in, smaller. In fact, we many fjnd jections based on presehiestimates
.

-.5?^®™?v.I,'!g'. S
dicatiori df What we

can

do—and

petitor, our Summer Xoad Build-,
ing- CfasAir .Conditioning
what we are doing now, is essen- program,- our; Commercial Ga s

!n ..thfee , fieldS^, especially^Cooking "PEP" activity,:ouf C6riiThose are: research, public rela~ mercial Gas Water Heating load
^

-1--

cannot
of

the

fold-away-type.

7Z~ aa
h
m
«♦
thi Annual'convention' ofthe^American

Ga^ Association, Atlantic City, n. j., Oct.
iSi 1958.

should

with

.....

beyond the life-

musl ^°:Ibcreased effort, over^and above

......

^ Story, oiir,; pdld .Star gj
Hohie^^ Campaiga.to;compete wit!
+U^ Tv/rA^>iTiw
^
the Medalliri
Hom^ of 'our com-

to'rest

afford

Guilder, our Oris' Lightingrevival;
our' national .magazine
ads ; and:-

the laurels of any of local* advertising^'-by. utilities, mart-

integrated gas timfe of most of us here. This com- our recent accomplishments. In- ufacturehs and;.dealeris ini close cd-:
water-heater or booster, as, will pletely disregards, the gas fields of stead, these successes-should only operation.. It means continuing
swimming or yading pool C a h a d a ? Mexico, arid' Alaska,, entourage us with their promise development and expansion of ourthat Esther Williams is going to which; there is. every reaSbn to of. what .real intensified research nationwide and local >promoii^8i
put in everyone's back yard!
believe, are fully as rich as those - cart do for us. \
" campaigns. ' It means
increased
_

Volume

Number

188

5788

.:.

The Commercial and Financial Chronicle

(1679) /'IS

in- area
development.
It duction continues to be Australia's
uuv.juai
yjx
tvitaitu
telling the public,' harder largest single industry* the indus¬ about 1,272,500'. The official target
than ever before,- about all the trialization of the Commonwealth, for
immigration in
1958-59
is
wonderful ihings -—and the new- accelerated
by defense -require-, 115,000 persons.
ments during World War II, has
things—we can do for them with
made further steady progress,: af¬
gas. ■■■
'We are flattered by the emula¬ fecting particularly basic indus¬
tries
such / as
steel,
automotive
tion of our toughest competition—
manufacturing; oil refining and
and I repeat — we " haven't seen
action

\JX

C. H. Abraham

Opens,

means

E. D. Gobb Treas. of

■

rail

anything yet and neither have
they—but there is no room left for

transportation..

The estimated

/ /

Schneider, Bernet Firm

•*

;

•

I4;" DALLAS, *

population of the

"" Commonwealth at March 31-1958
was
9,801,200 as compared with
*. i But beyond this intensified use
of our established sales. and pro¬ 7,579,400 at June 30, 1947, repre¬
motion machinery, it means that senting an increase of 29%. More
to be complacent.

;

Cobb

was

Tex.

—

elected

Edward

Treasurer

D.
of

Schneider,' Bernet &
Hickman,
Inc., 1505 Elm Street, members of
the. New York Stock Exchange,
on

Oct. 1st.; /

"/'

than 54% live in metropolitan ui*-

;

Abraham

Form Albion Securities;

Inc.' is
Albion Securities Company has
engaging in a securities business been formed with offices at 11
from officer at 565 Fifth Avenue,
Broadway, New York City to en¬
New York City.

Co.,

gage in a securities business. Part¬

ners

LOS
mew

Stern

ANGELES, Cal.—Bartholo¬

Stern

Co.

formed

has

with

offices

108

Form Stock Purchase; Plan

Jersey

curities

business

from

listed

remember—no

one—but >

one

and gas utilization
equipment that we in the industry
must!■ •:,

quotation

which

appropriate here:
-

"I do know

•

•future
'

little

seems

the creative imagination that results
,

methods, finer products,' better living.

/'■

.None of these is listed in financial reports or balance

}

sheets.

But they are the most important assets of every great company.

thing—that the
industry is not for

one

our

with

men

paraphrase:'

newer

,•<.

:::;
close with

pf> gas

Let

Vision, foresight, spirit.

take the interest in the

ever

sale

little

minds.

is not for men without vision who/

fear

it is not for timid

progress,

men.

No, our industry's future
is for men who dare to have great
expectations; and who with theguidance and courage, of ail the
people for whom they strive— •
will

have

also

the

courage,

persistence, the wisdom

and

patience to transform those
pectations into realities."

'^1 arri

that

sure

expectations"
to

/for

will

continue;

them

into -realities

gas

industry!/' "1 ;•?'

great

our

'•

ex¬

"have great '

and

transform

-•

the

Morgan Stanley Group
Offers Australian 5s
v..

issue

monwealth

$25,000,000

of
is

20-year,
offered for -

being

public sale today (Oct. 23) by

underwriting
riient

firms

Com¬

Australia

bonds

headed

of 70 invest-

group

Morgan
Stanley & Co.
The bonds; due :
Nov. 1; 1978, are priced at 97^2%
and accrued interest, providing a 1 \- V:
/yield of approximately ; 5.20 % to
maturity. Principal of and inter- " }
est on the bonds, which are direct
obligations of the Commonwealth, 1
will be payable in United States
•

currency.

of bonds5"
-by the/Commonwealth
was
on*
April 22, 1958, when $25,000,000
'

,} /The last previous sale

of 43A% bonds due 1973 were mar¬
keted

99%.

''V-xt'/V'

7''/

.//:For the current issue
fund has been set up

.semiannual

a sinking
providing for

payments

$640,->

/000 commencing Nov. 1, 1959 and
,calculated

retire

100%

the:

•issue by maturity..

The bonds are
;not redeemable prior to Nov. 1,'

1968/except by operation of the

■

sinking fund.

On or after Nov. 1,"
they are redeemable at the
option of the Commonwealth at1968

f1011/2%

including Nov. Y;
decreasing
prices ".
.thereafter. The sinking fund re- '
ademption price is. 100%.
.; V
Y The proceeds from the sale of*
'the bonds will be applied toward*;
.1970

and

•

From

natural

capital -works
under
;

and

gas

and oil...

heat, power, petrochemical*
that mean

•

ever wider service to man.

expenditures

program proposed for the

Commonwealth and State Govern¬
ments.

Among the public works
projects financed under this pro¬

gram

are:

housing,

the

develop--

ment of electric power and trans--

mission facilities, modernization 6f
railroad equipment; and construc¬
tion

additional

water

•

supply,

AMERICA'S

irrigation and
«

sewerage facilities.
The Australian
Commonwealth,

TRANSMISSION

LEADING

TRANSPORTER

COMPANY
NATURAL

GAS

"
HOUSTON, TEXAS

including the island of Tasmania,
comprises in all

area

of about

2,974,581' square miles — almost
equal to the United States (ex-

eluding Alaska). While wool

pro¬

'Ma.

•"

offices

15 Exchange Place under the name
of Carl N.- Christensen & Co; 1

will

Opens

N. J. —Carl N.
Christensen is engaging in a se¬

■

of R.

'.•"/•

City,

•

name

under the firm

Carl Christensen

Opens

_T., Bohlin Securities.

for gas.

Dailey and

business from offices at 112 Ward
Plaza

■

person

TEANECK, N. J.—Ragnar T.
Bohlin is conducting a securities!

North Sycamore Avenue to engage
in a securities business.

should be a salesban areas. Since the end of World
FQRESTHILLS, N. Y.—Stock
/
5
Every gas indus¬
Joins Hill Richards •',"/;
War II, the Commonwealth has
Purchase Plan, Inc. has been
try employee—and every member
*"/'
(Special to The Financial Chronicle)
formed with offices at 69-09 108th
actively assisted immigration, par¬
of
his family — can
become a
LONG BEACH, Calif.—Charles Street to engage in a securities
ticularly from Great Britain and
■salesman.
r.
Europe, and, in the 11-year period T. Neale has * become connected -business/ Officers are Jack M.
..."\ ..I mean this literally." Proper ended March
31, 1958, permanent with Hill Richards & Co;, Farmers Pompan, President,
and Esther
incentives, encouragement and arrivals (persons intending resi- arid Merchants Bank
Pom pan
Building. '/.'
Secretary.
"
training
can
bring
every/ em¬
ployee into the saJes -program.
From office boy or girl to company president, we.. can
become $
not
an* army
of - gas ambassadors— ^
500,008 salesmen for gas! Always ,C\
of

every one

William

Dailey.

R. T. Bohlin

B.
at

are

M. S.

Forms B. R. Stern Co.

The Commercial and, Financial Chronicle

(1680)

service
next
week,
heightened interest in
Boeing. Its commercial jets
won't reach peak production

Thursday, October 23, 1958

atlantic

also

THE MARKET.

By WALLACE

AND YOU

until the middle of next year,
but present orders indicate

STREETE

that it will

Stocks

show hasn't

continued' to

been

From

and rate

excessive

operate at

Washington

Ahead

high
this phase of its busia

of the News

By CARLISLE BARGERON

One bright ray of hope which
the 1958 range of Amer- ness until 1961.
the Republicans have in all the
than not this week, the area ican Motors from a low of $8 j
country in the coming elections is
around 550 in the industrial to above $29 could be justiA Closed-End Fund
New York.
Here they have high
average seemingly an area of fied to some degree by the
The fund item among the hopes of electmuch resistance. The list re- excellent
reception being low-priced shares available in ing a Senator
fused to give ground to any given the company's cars.
listed trading, which has also Mrs ^oo^e-

irregular tone

times

extent, however* even when

the pressure was
eral.
*

rather

The 550

had been

area

widely mentioned as the first
target for the bull swing that
it was far more a psychological barrier than
solid

based

one

fundamentals.

fact,

technical considerations

were

almost
fore

^j 'P been a high-volume one re- veit

his

candidacy, figuring it would

draw from Watkins. Instead it put
Latest reports in the senatorial
in Nevada and Arizona are

races

quite heartening to the Republi¬
can, high
command.
The feeling

is that Goldwaterand Malone

now

may

through.

ease

could

one

.But

neither

considered

Eisenhower Republican.
;

Malone is
against

wiitten

his

the

ttargeron

see

it.

does

has

not

of
he is

out

to be antagonistic,

way

one

and

man
aid. He

foreign

book

Goldwater

Carlisle

high tariff

the

most popular men in
Senate, but he and Eisenhower

eye-to-eye

seldom.

very

imporcandidate. In her ~ hTgeneref belief among Washprofits from investments widely distributed column, she has ington political observers is that
history been in this
After a long period when so far this year with only a said, the Democratic Party doesn't Nixon has added materially to the
the
market
students
shied small portion so far paid out. like bossism and is strongly in- Republicans' chances. It is doubt❖
*
*
frnm
ih*
mntnrc
Tf makes it a
candidate for hmating that she may not vote ful, however, that he got started

area.

has

index

never

be-

tant

nWflV

™

country. The Democrats
delighted when he entered

their candidate out of the running.

has just

closed-end invest- thrown some
The senior motors were re- ment company, General Pub- more hot coals
strained. The rather fat loss lie Service
Corp. Despite post- that was
rolled up by Ford for the first ing new highs, the stock is started at the
three quarters of the year, still available at a discount Democratic
while not entirely unex- from net asset value which is State Convenpected, was still a moderating somewhat normal' for most carmine ^einfluence. Moreover, the news close d-end companies. As
sapio overfrom Chrysler is expected to some of its followers point rode Governor
get worse before any im- 0ut, however, General PublicHarriman in
cently, is

this

were

completely lacking provement becomes apparent. Service has realized

the

since

•

Senior Motors Restrained

gen-

even

crpn-

aw^y lrom the motors gen- It makes it a candidate ior

The

for Frank Hogan>

the

senatorial

eariy. enough

wrest

victory

low-priced motors that erally, except some occasional good dividend news before candidate, whom
DeSapio put from defeat. It is felt he jnay
have had such persistent foltrading interest in a more the year is out, particularly across in the face of Governor have reduced the Republicans'
lowing were finally clipped a volatile issue such as Chrys- if utilities and, specifically, HarrimaiVs choice of Mayor losses. The attempt to work a
bit

hard

occasion.

coincided

easiness

Their ler

with

re-

lease of the latest report on

outfits

motor

some

their

were

spotty attention

the

natural

new

sales, but it was
pin it on this since the nite evidence of how the

evidence

re-

companies

gas

into any bull market
play, since it is heavily comcome

model '.years
hard dawned. There is still no defi- mitted

short
to

the

getting

with

utilities

half

of its assets in such issues.

gtand

aversion to bosses

husband
and

relied upon

political.

kitting campaign is just

Her

These

bosses

much

hogwash. He and the President
understand each other very well,

them, labor
pre-

yailed, in fact, in the selection of

There
ception is going the shortages
Bank of New York
of short being reported by dealers m
A New Oil Item
0f Harry Truman.
positions in American Motors some areas being shrugged off
Oils, as they have done on
j SUSpect what is eating Mrs.
but, on the other hand, that as due to the production several occasions recently, Roosevelt's craw is the experience
The Bank^f New York is offerin Studebaker expanded to troubles that
plagued the Big showed some stirring at times of her son, Franklin, when he ran jng to its stockholders the right
where it had the largest num- Three before their new union with not much concrete commixed.

was

sizable covering

was

Offering Underwritten
w

ber of shares short of any is- contracts
sue. In Studebaker there were

nailed

were

down ing

from it as the strength as Governor,
oozed out rather rapidly, markable job

solidly.

high hopes of

dramatic

some

diversification

Some of the better values

are

30OWadlitlonalSes

which

was

re-

stock

vIlue S

SlOO par

DeSapio's part ratio of one new share for
'out young Franklin was clobbered, eight shares of stock held of
on

the

each
rec-

announce-

Naturally General Motors available in this section as a
££: 01'.f'°" °.ct- 21- j,?58- J.he,niloring
was in rather better
standing result. The mundane item in that he. sacrificed young Roosecompany ,met.
These were than the others because of its the petroleum group—in fact, velt. This is not necessarily
trae,,:provide additional capital funds
dashed,; however, when the demonstrated ability to outdo largely unknown — is Cham-.however, because Javits was sure- to meet the
expanding demand for
meeting failed to produce its competition in a bad busi- plin Oil & Refining., This
^ew York Cilr^Like "congress- the bank s servicesanything specific.
"
ness period. It was the
only formerly was an investment man Powell in Harlem he Is alThe offering wiH ;be underone of the Big Three that trust known as Chicago Corp. most unbeatable in. New York
b^w
New Highs Dominate '
didll>t have toScut its 1958 which shifted over after- ac- City..
headed by Morgan Stanley
ments

the directors of the

-^TCe^prweedss!te'will

it*

Technical

indications;

are

dividends;

mostly favorable. While volume

roughly

week
break,
nevertheless it tended to dry
up on days when selling was
around
and the three-year
peak for a single day's turnover

half, without

set

;tion,

the

best gain of the year.

the

been

expectations quiring Champlin Refining
its pay- and has yet to round out two

I doubt seriously that Finletter

knowrf

bank, having been organized in

integrated

whereas Hogan is almost a house-

inhSh^mr^Si^nS^fnr^

cover

all

appearing

also

tended

the

The

labor
is as-

Pont

will

°i expand on forced to dump its mammoth
str®^Sth and contract on holding of 63,000,000 GM
profit-taking. New highs
tinued

outpace

new

con- shares aren't clearing quickly
lows but the trend seems to be

because

weh

his

long'

hZore^LSvltivefftke^e^e

vMes

be more conservative in the Senate

nii^L^had^rather
Smes
^

New York>s

ldest

a^plete raSI? of services
QM-nnnta

inane

this

trvine

vear

™

services

cae

k .

K^ttor' who^r^Krenhowe? fnd foreign collection and remit-'
but the im- "modem Republican," known only ££*
c^ers"
to have s™
lnork State. di5t"ct in Upper NeW providL inve^mem ad vi'so'ry
h,™
seems to nav
y

provement
over

He* fnot
hold word

™ment

uncertainties

For

two.

industry,

evnnnd

than

other

years

have oil operation.

SUred.

session whether
nn"fnwuui +n

models

for three years

peace

The is-

was

revamped

those of

second

sues

and

that it will

held above theToiir mil- ments for the
year. In addi- full

lion mark for
and

are

that its $1 dividend will

and

serves

both

per-

t *
sonal and corporate trustee.
Th® reaI upset in the coming
The capital funds of the bank
*

•

ke covered comfortably, put- election may come out in Utah 0£ gepf 30 1958, adjusted to reti
it . t
th
above-4% wher* J- Bracken Lee, running as j;lect a 50% stock divid€nd which

L^lV

im-

rnntinued

bracket. Continued, im

provement in the oil business

ep!wn\iS

was

watkins the fight of his life. With

paid Oct. 1, 1958, consisted of

$24,000,000 of capital stock, $16,-

^Democrata

to the shifting toward some settle- into next year will brighten djdate in Utah seems to be defifncome for the nine months ended
definitely lop-sided, although ment that won't entail im- the
picture that much more,
nitely out of the race. The fight Sept 30> 1958j was $3,099,000 or
there was a contraction of the
pairing the market in GM. In
+
1S bewueil Jtee'
want®to $12.91 a share, based on 240,000
highs because of the realizing. anv event the ksuP was re*
repeal the 16th or the Income Tax shares outstanding Oct. 1, 1958, as
^
ik
'
?
A measure of how Cham- Amendment to the Constitution, COmpared with net operating ingarded favorably enough in
u,
and Watkins, who has gone along come of $2 946 000 or $12.27 a
The one flaw in the tech- the
marketplace to enable it P
been neglected mig
Eisenhower in all of his ^or" share for the same period in 1957.
nical considerations was the to
post a new 1958 high after be this year's range which has
Dividends declared in the first
big volume run up by the that level had been a formi- yet to cover an arc of as much the
running

—

Stude- dable barrier to upside prog-

bfk®r southing thea lists
regular
at the head of of
on

ress for some *
time.
*
*

daily turnover running well

had

little

its

f^t P

widespread

Except in

Studebaker

soared
mH/»h
+,

from

which

below

has
to

some

d°uWe the 1958 one and had

group. The fact that its
merrial ipf nlanpc

arp

com-

rThe
article

cfarfind

views
do

not

...

expressed

tne price

action

the others

necessarily at
„

...

start

regular

trans-

the
,

those of the author only.]

oro

that

ing too welL Lee ran for
president

four

years

«
tax>

would

ago

any
+ho

job From the

of i957 and 195J.were

Ne^operating ScoSelo? the year
1957 was 84594'°°° or 81914 a
The

bank has paid

cash

Vice" lie tisfoSndat^e3Ch year
on

••

oftoe "fncome Now With Merrill Lynch
Seem

bat be served as
Utah and did

£ine

share.

not

detract

this from him as a serious candidate

t p a es are Starting time coincide wdh those of the
-TH>=purnig tills year, to appear, with the first one <cChronicle." They are presented
rinrmrt

censuring

oJndiHotoc

™.d ^

of the others in the

^tife^ord

oil entity—it

werfX '1^ Mlow^' altbou|h the?u is f P?k WeU ^
interest
Boeing than levels.

Hupp were aiso
xiupp
regulars near
the head of the lists.
for

eight points. Last year— late Joe McCarthy,
.

Aircrafts, like the motors,

quarter million shares, have

spadework

low-priced items

past

(Specal to The Financial Chronicle)

AKRON, Ohio—James J. Gan-

Governor of yard is now affiliated with Merrill

very

competent Lynch, Pierce, Fenner & Smith,

is pouring into his campaign there is a
way money

First National Tower. He

was

for-

merly local manager for the Ohio

lot of opposition to the income tax Company.

Number 5788

Volume 188

Commercial and Financial Chronicle
The

(1681)

sufficient slack in

Ikon

Recovery to Boom?

prevent

major breakthrough on
the wage-cost-price front. Thus,;
the vitality and longevity of the
current recovery will in good part
be
determined by
the answers
found to the mounting price pres¬
sures arising from deficit spend¬
ing and the emerging rise in la¬

By MARTIN R. GAINSBRUGH*

Board

Chief Economist, National Industrial Conference
New York City

Conference Board's top economist reports recovery's vigorousness
has virtually reached its pre-recession peak though a
of unemployment persists

in industries still operating
Prof. Gainsbrugh advises further credit tight¬
ening may be needed to keep sufficient slack in labor market
and industrial capacity to prevent major breakthrough on
wage-cost-price front. Believes rapidity of recovery will slow
down, and that answers to mounting price pressures arising
from deficit spending and emerging rise in labor costs will
determine vitality and longevity of current recovery.
core

bor

behind

new

economic

begins to emerge
the third quarter offers fur¬

for

confir¬

ther

mation

vigorous

entum.

rapid

been
of

rate

national

output for the
quarter just
ended

may

almost

have

its
pre-recession
peak. The alltime high of

terest rates

Gainsbrugh

Product

third

the

was

re¬

are

also beginning to

Homebuilding market, another
burgeoning area in the first six

was

of recovery.

months

resumption

Federal

Bringing

revenues

firm and

tion

Federal

ex¬

under

wage

reliable founda¬

this

and bur¬
Moderation of
and stem resist¬
young

demands
to

excessive

increases
would also serve to improve the
health and life span of what is
both a rapid and yet uneasy re¬
covery.
'■
.7
ance

wage

Capacity

and

Robert.

offer the firm's varied services to
investment dealer firms
out the Middle West.

Mr. Sutphen has been a mutual
sales manager at the retail

level,; a
wholesaler
of
fund
shares, and has specialized
in
sales training techniques.
-

His recent affiliations
Eastern

region

Industrial

Fund,

ordinated

dealer

conducted

sales

throughout

his

St.

home.

with

St.

where

53 State Street.

Good

Forms H. Gersten Co.
Gersten is

engaging in

securities

name

Street

the

under

of H. Gersten & Co.

firm

formed
Street

was

Unemployment Core
preliminary estimate
formerly with Samuel B. Franklin
for the third quarter of the year
The
strength
of recovery
to & Co. of Los Angeles.
is about $440 billion, with Sep¬ date, therefore, does not as yet
tember
the strongest
month in underwrite an imminent return to

Louis

Dean

will

his

capacity

new

Dr.

Treasurer.

New -York

the

American

and

office in

Raleigh, N. G., which is

thought to be the largest between
Miami and Washington. The office
will be managed by-George I.

Griffin, formerly of Reynolds &
Company, and he will, have asso¬
ciated with him in the
Edward

Pou

representative.

now

find America's

con¬

capital

exerting their influence through¬
country's auto cen¬
ters, as did a retroactive pay riseto Federal employees earlier.
out all of the

BELLMOKE, N. V. —Emanuel
Friedman is conducting a securi¬

Company

has

ties business from offices

offices

916

Howard

se¬

engage

Officers

The
recovery
surge
has also
brought several sectors of manu¬
facturing to new highs, particular¬
after six months of recovery,

durable output is fully 10% below
its top

level a year ago. In many
of these industries, such as steel,
machinery, and metal fabrication,
current output is still far below
pre-recession peaks. The output
■of durable goods, the group hardest
hit, fell off by 20% during the
recession, as compared witn a 5%
decline for soft goods. The rapid
rate
of recovery
thus far may
a

brought with it

fullblown boom

belief that

is imminent

not
already here. It is well to
recognize, therefore, that the re¬
bound since April is in good part
a
function of the severity of the
recession from mid-1957 to April.
Short-lived
as
the
July,
1957-

April, 1958 recession proved to be,
it

also

was

edented

while

past,

one

of almost unprec¬

intensity
its

ran

and
course.

severity
In

characterized

recessions

the

extremely sharp rates of contracc An

address

the

American

N. J„

40th

Gas As

Oct.

Mr.

annual

Gainsbrugh

convention

be¬
the

:iation, Atlantic City,

13, 1063.

excessive rate of demand for

was

Everette E. Ballard

reasons

are the pressures
this time? First, from a
source beyond the control of pri¬
vate
industry,
namely our $12

Where, then,

arising

Federal

billion

deficit

that

will

continue to create financial pres¬
the

sures

difficulties

months

Treasury financing

further compounded as savers

are

and

thrift

institutions

seek

out

of sav¬
ings which offer the best protec¬
tion against further deterioration
increasingly those forms

Ballard is

The

second

and

growing

cause

conducting

They're

not

"■

hard

economically diverse. No single industry employs

than six percent

of the labor force. The result is a great vari¬

of crafts and skills. Another important advantage is St. Louis'
role as a trading and distribution center: its ready access to other
markets and to abundant supplies of raw materials and resources.
important of all is St. Louis' strategic location—scarcely 75 miles

from the population center of the nation. In fact, census projections
of population indicate that by I960 St. Louis will he
AMERICA'S

FOCAL

More and more,

St. Louis' location will

POINT

mean

little

any

intensive

demand pull as yet from the

busi¬
ness sector.
Further tightening of
credit
may
be needed to keep

progress means

its

progress.

And

profits.

consider the unusual

in either the
price or wage structure, and a
creeping barrage
of wage
in¬
creases has already begun
to hit
the wage front. As this recovery
ages, the wage push is growing
pronounced, even tnough the rate
of
unemployment
is high and

industry

When your

thoughts turn to plant expansion and re-location,
advantages of St. Louis. Consider, too, how
its spirit of rebirth and rebuilding can revitalize your future, con¬
tribute to your growth.

aclede G
1017

O LIVE

STREET

;

correction

securities

Place.

price pressures is the wagecost-price push.
The recession
itself was accompanied by little
any

Inc.

behind the St. Louis renaissance?

business and

business from offices at 505 Park

in the dollar.

formerly with Burt, Hamilton &
Co. and Eppler, Guerin & Turner,

ety

Most

Opens

(Special to The Financial Chronicle)

The

aread.

firm

PARK RIDGE, 111.—Everette E.

Population is now estimated at two million. And in the past
eight years booming St. Louis County has shown a population
growth of 54 percent.
:
!
find. St. Louis is

at 2132

the

of Diron Investments Co.

Optimism is the mood in St. Louis these days, and there's a reason.
In the past six years over 200 business firms and industries have
selected St. Louis for expansion or re-location.

The

Inflationary Pressures

there
r

fore

the inflationary
longer be ascribed

capital goods.

But

ly food, tobacco and paper.

time

pressure can no

have

this

1957,

New Highs in Some Sectors

even

high rate of unemployment still
prevailing, credit restraint has al¬
ready become necessary.
Unlike
similar measures invoked in early

under

are

Good,

Louis Dean Good

name

Place,

ahead

Opens Miami Branch

goods

personal income in 1958 has con¬ repeatedly then (1956-1957) that
sistently outstripped the income we were trying to do too much too
figure lor the same month in 1957. soon, particularly in the capital
Throughout the third quarter it goods area. It is surprising, there¬
was
a
record height.
Now, pay fore, that with slack in many key
hikes
retroactive
in
July
are sectors of the economy and with

MIAMI, Fla.—General Investing
Corporation,
New
York,
an¬
nounced the opening of a Miami,
Fla., branch office in the Ainsley
Building. The new office is under
the management of Edward Joyce,
of Fort Lauderdale, Fla.

Throughout

the months

registered

General Investing Corp.

virtually
all
the
sector we could in
expand output
sumers with more money to spend
substantially before excessive de¬
or
save
than ever before in the mand would start bringing with
nation's
history.
Beginning
in it the growing pressure upon the
February, personal income
has price structure which, it is
risen unbrokenly in every month claimed,
touched
off
our
last
of this year. Even more in point, round
of inflation.
It was said
dustries

retailers

office

new

Moran,

capacity.

excess

new

to be located in Cameron .Village.
This is a large shopping center

quarter. National output in full employment. The percentage
past three months rose . by of the laber force unemployed is
fully $10 billion, with little of uncomfortably close to a postwar
that gain reflecting a price bulge. peak,
and a hard core of con¬
As we enter the closing quarter, tinuing unemployment continues
therefore, national economic ac¬ to be found in the durable goods
tivity in dollar terms is barely industries. These clearly are also
1% below where it was at its 1957 the industries most marked with

the service in¬
general, as well as

an¬

the

The gas industry,

Stock

have
of ; a

Associates
opening

nounced

that

high watermark and is still rising.

Stock
.

Forms Diron Inv. Co.

President;
Good,
Vice-President;
L. P. Good, Secretary-

Dorothy
and

with

business.

curities

Hawaii —Harold

co¬

Texas —The

Investment

been

Exchange
Exchange

and

Kalb, Voorhis & Co.

Main

HONOLULU,

training courses
region, and was

TEXARKANA,

ors

bers

with

relations

Louis

RALEIGH, N. C.—MfcGarley &
Company, Asheville, N. C., mem¬

Financial

Form Good In v. Co.

Invest¬

Corporation is engaging in a
securities business from offices at

were

Louis, Missouri where he has

his

(Special to The Financial Chuonicle)

Mass.—First

Vice-President in charge of sales
for Mutual Fund Distributors, in

First Investors in Boston
BOSTON,

through¬

fund

the

McCarley & Co/ Opens
Branch m Raleigh
-

Sutphen v has
joined
Kalb, Voorhis & Co. He will be
working
with • Ferd
Nauheim,
partner in charge of dealer serv¬
ices. Mr. Sutphen will conduct the
Kalb, Voorhis Mutual Fund sales¬
men's training program and will
,

headquarters in his

The

rate).

Sutphen Joins

Kalb, Voorhis ft Co.

would help build

geoning recovery.

aumoku
Excess

inflationary

business from offices at 835 Kee-

quarter

1957, at about $445 billion (annual

dif¬

difficult prospect

Higher in¬

reduce the flow of funds into the
M. R.

National

reached

time

to inventories.

to add

equaled

Gross

upturn

addition, two of the forces
contributing toward the rapid re¬
covery of the past six months may
be largely behind us by year-end.
The drag of inventory liquidation
should be completely eliminated
by that time with little stimulus
forthcoming in the way of a rush

recovery

that

and

face

now

penditures into better balance with

has

the

we
more

pressures.

quired to return to pre-recession
peaks than was true of milder
cycles.

that is
gaining

mom

expansion,

the first six
the

re-|

the

ferent and

spondingly rapid rates of expan¬
sion in the early months of recov¬
ery, particularly in
months.
Thereafter,

with

our
major economic
That is now behind us.
Along.. with
further
economic

lion have been followed by corre¬

slowed

re¬

covery

still

cession

1958

problem.

and each

indicator

entered

—the

Robert

costs.

below capacity.

Six months of recovery are now

both the labor-

market and industrial capacity to;

•

Chronicle

The Commercial and Financial
18

Thursday, October 23, 1958

(1682)

So in reviewing them
together, let me assure you that
my pipe line associates will welcome all the help they can obtain,
in tackling these problems.
;
industry.

A Time lor Greatness
By GLENN W.

President, Independent Natural

CLARK*

Gas Association of America

and

again find ourselves facing

Mr. Clark

avers

time

can

be lost in acquainting the mass

cooperative

natural

Jeopardizing the

program.

limitation

Memphis Case

the

you
are aware of the
withering influence of the Mem¬
phis Case.
Should the Supreme
Court of the United States uphold

decision, it will be the pur¬

this

pose
of the pipe line industry
inability to obtain legislation
group to
support with all legal
will
insure. gas
producers
means at hand legislation to nul¬
against
utility typeregulation'^
lify the harmful effects of that
The
continuing
confusion« and

gas

each segment of our
interdependent industry. Through
such self-enlightenment they

terest
.

that exists

at the

decision.

the

time that the cost of

same

»_».• -

gas
For the

industry

our

both

past two or. three years
Associa¬

American- Gas

the

tion and the Independent

replacing produced gas is increas¬
ing rapidly is, in my opinion, the

Natural
Gas Association of America have

most serious situation faced

done much to

today

by the natural gas industry. With¬

regulation and repeal of the 6% rate of

promote the idea of
unity between the various segments
of the natural gas industry. These

out the continuing
discovery of
huge new gas reserves which will' efforts'to weld the industry closer
together have, paid good dividends
be dedicated willingly to the in¬
will reap much richer-- re¬
terstate markets, the progress of and
the entire gas industry will be wards in the future if we con¬

able

arrive

would

the

most

whole

solu¬

in¬

the

industry and

important of all, in the

interest of Mr. John Q. Customer.
If

forget his interests

our

frustration

depreciated original cost basis which is said to be
that discourages obtainment of adequate financing.

which

tions

never

producing segment of

." and the "relentless onslaught of inflation."
will insure gas producers

against utility type

can

obtain,

that

Recommends legislative relief that

return

conditions

producing industry because of

gas

producers and the gas industry, he opines, is the chaotically
"continuing confusion and frustration that exists ... at the
same time the cost of replacing produced gas is
increasing

rapidly

suggestions

constructive

to help bring about mu¬
understanding of problems

attendant to

bur

prise system, solving the specifically urgent problems con¬
fronting the natural gas industry, and developing an industry¬
wide

chaotic

almost

free enter¬

people of America with the virtues of the

of the

tual

should
Problem

St. Louis, Mo.

Mississippi River Fuel Corporation,

stature

All

The Most Serious Natural Gas

•

United States, I am confident that
the Commission will welcome any

his

get

support

problems.

will
solve

;•

[1 truly believe this idea of or¬
ganizing a top level group in our
industry has come of age. : The
;

idea

voiced

was

Southern

the

Gas Association last April by my

good friend and fellow officer of

INGAA,

Bill

Elmer,

presentation

which

strongly

urged

panel
the

discussed

need for industry unity.

support

Bob Otto
of this

kind of action at the INGAA Con¬

vention.

his

farewell

conven¬

tion

talk, held recently, he again
Great¬ haps more insidious step in the
emphasized the need for unified
tinue our efforts along this co¬
ness," is an appropriate and chal¬ system of governmental absorption throttled.
*
action. Bob can be assured of mj>
lenging subject.
It calls for, I of the business community such
operative line..
v.,
'
- ^
At the same time I recognize
support in this project. Further*
feel, some stock taking on every¬ as we have witnessed in the ab¬
In the past there has been much I feel that distribution
that repeated attempts at legisla¬
leadership
sorption of some of the functions
one's part be¬
to be desired in developing joint in this movement can do much to
of local
government.
All such tion with the attendant deleterious
fore
we
plot
publicity, caused primarily by the i ndustry promotional efforts."And insure its success—for it is this
processes present
anew a chal¬
our
future
at this time it hardiy can be ex¬ segment of our > industry which
lenge to business leaders to ac¬ uninformed, has had a very bad
course. There*
effect on the public relations of
pected that gas producers, ham¬ holds the first line contact with'
tively participate in endeavors to
fore, it seems
the entire natural
gas
industry. strung as they are by regulatory the public in whose hands our fu^
preserve
initiative and private
■appropriate
My subject, "A Time for

that

ownership

discuss

specific
suggestions as

greater

phases

been

our

and

even

has

We find business
under suspicion

growing.

and
Glenn W. Clark

attitude

generally

business

towai'd

and
greater

Afneric

relief will involve

unfavorable

vaguely

gas

industry
a

Govern¬

life, business and per¬
The
vaguely
suspicious,

sonal.

realize

timing

all

over

growing

increase

control

ment

Therefore,

been

American

pipeline com¬
panies can do
to help build
a,

for

clamor

the

what

property.

of
has

There

some

economy

vicious attack.

that'- the

again seeking legislative

difficult deci¬

a united gas
industry to
However, pending that de¬
cision, I do not think it wise for
the industry to mark time.

sion

for

make.

believe

the pipe

line

Power

calities of

enthusiastic

industry-wide

until conditions are such
that they create in them the real
desire to
sell gas for resale
in
program

interstate

Most of the

commerce.

pipe line companies favor the idea
industry-wide cooperative pro¬

com pa-, of

nics, with their experience before
Federal

foreign to .the" practi¬
their business, will be

processes

Commission,

can,

in conjunction with gas producers,

how¬
Perhaps at no other time in our make a serious attempt to find at
I would like to consider this short national history has the in¬ least a partial solution of these
broad subject from the standpoint
telligence and integrity of business problems within the framework of
not only of the pipe line compa¬
leadership been so important to the Natural Gas Act as it is now
nies or the natural gas industry
In the near future I
the Nation and to the world. Our interpreted.
but of the entire business com¬
system of economy is being chal¬ will appoint a Policy Committee
munity of which we are such a lenged abroad and at home.
composed largely of members of
large segment.
Because we are
It is easy to find fault and dif¬ the Producer Division of INGAA
a
iarge and important part of ficult to offer constructive criti¬ to study ways and means of bring¬
American industry, we necessarily cism. This is not to be construed
ing more stability into the regu¬
share with other industry many as a tirade
against, or an indict¬ lated portion of the gas producing
common problems
and responsi¬ ment of, those who happen to be segment of our industry. If this
bilities.
However, there always in
political office today, for in a Committee, with the help of our
is the tendency to concentrate all
large measure these things simply Legal
Committee,
can
indicate
of our time and efforts on those reflect the attitudes of the
large some solution to this perplexing
problems which are primarily ap¬ mass of our people.
problem, it will be its purpose to
First,

plicable to our own industry.
Despite this year's recession we
are living in a period of relative
prosperity, both as compared with
the history of this Nation, and in
comparison with other nations of
the

world.

Not

this

achieved

pros¬

but

as
well.
studies show

memory

recent
our

that

49%

population do not remember

what

conditions

World

have

short,

individual
the national
For instance,

the

only

memory

wonder that each

ideals and

resell

the

generation must
heritage of

American

principles? They do not
petition does dominate private automatically survive! The world
of political, economic and social
enterprise in America today.
Modern technology is providing ideas, is a very human enterprise,
America
with new
frontiers to changeable as any human activity
bring forth new capacities and
techniques. Our laboratories and

must be.

are bringing forth new
economic life processes indicative
of the incentive
of a people to

sume more

enterprises

Let all of

ing to

resolve

now

as¬

responsibility in bring¬
the great mass of people in

America

the

virtues

our

free

its past under the enterprise system. I suspect that
of competition, inde¬ businessmen spend too much time
pendence and self reliance in in speaking and sending literature
keeping with the character^ of our to one another. We do not need to
be sold on the precepts we live by!
people.

improve
challenge

have

the

seen

of the

start

Also, let

resolve to conduct our
business under the time tested and

and the space age—of
satellites — weather control dis¬ proved
atom

age

coveries

and

other

spectacular Rule.

breakthroughs — in science, re¬
search and development, factory

production and education.
has

industry

missiles

A new

grown

in the past ten years
•with the Government spending in
the billions of dollars each year.
primarily

products
of
the
metals,
chemicals,
ma¬
chinery, ceramics and related in¬
requires

many

This

dustries.

new

enormous

infant

industry is employing from 15,000
to

20,000 engineers alone.
of these examples of in¬

Some

genuity

and

enterprise

their

without

are

disquieting

not
side.

They constitute another and per1

♦An

Annual

address

Mr. Clark before the
of
American
Gas

Convention

Association,

Atlantic City, N. J., Oct. 15,

1958.

principles
If

cannot

suggestions

Federal

Power

and

its

for

staff

helpful changes
policies, practices

regulatory

and

Commission

procedures.
Onslaught of

the
do

Golden
this

cannot

expect people to believe in
the system we espouse.

almost

are

just

few

the

will,

my,,opinion,

this

further

Public
I

program.

Opinion

pleased to mention at this

point that the INGAA Board of
Directors approved at our recent
conventionr the joint sponsorship
with A. G. A. of a national public

is; the

This

study.

opinion

of its kind, ever

„

Sponsors

(Special to The Financial Chronicle)

DENVER,
Growth
been

Colo.

Fund

formed

Sponsors,
with

American

—

Inc.. has

ofiices

the

Security Building to engage in;a
securities

business.

Officers

are

Robert D. Brody,, President;. Rob¬
ert Gamzey, Vice-President; and
Louis

Waldtrum,

Secretary-

Treasurer.

W. G. Rayne

Opens

HUNTINGTON

Beach, N. Y.—
William G. Rayne is conducting; a
CREW

PAYLOAD

MAIN GEAR

securities business from offices at
720 Monroe Drive.

Schlackman Opens Office
Inboard profile of a possible nuclear bomber. This design of 4-engine
aircraft calls for close
one

proximity of engines to reactor-and mounting of engines,

above the other, in pairs on opposite sides of the fuselage.

ISLAND

opened

PARK, L. I., N. Y.—
H.
Schlackman
has
offices at 189 McKinley

Avenue

Seymour

engage

securities

business.
>

State Investors Formed
ALBANY,
Ringel

and

formed

One

series of messages addressed to the financial community of America

with

N. Y. — S t a n 1 e.y
Joseph Bruno have

State'

Investors

Service

offices at

engage

J. F.

90 State Street to
securities business.

Synkowski Opens

UTICA, N. Y. —Jules
kowski

conducting

Syn¬

securities

business from offices at 518 Bacon
Street.

Bache & Co.

was

formerly

with

Financial Chronicle

The Commercial and
26

Thursday, October 23,1953

...

(1690)

represented by 55,080 shares, from
the present $600,000, represented,

by 24,000 shares.,

News About Banks

Alfred

NEW BRANCHES

REVISED

Pope,

Jr.

Pope has
since 1938,

bank

been

Bank,

Manhattan

New York, has announced that it

preparing to launch a credit
shopping service, The Chase Man¬
hattan Bank Charge Plan, for con¬
sumers in the metropolitan area,
is

the

only

The bank said

will

bank

by a

offered
City.

one

in New York

1 and

Dec.

operating by

that retailers in all five boroughs

have expressed eagerness to par¬

ticipate.

Beginning

Oct.

York

New

Total

resources

Deposits

——

banks
U.

18,354,996

Loans

discounts

Undivided

16,531,319

14,776,477
40,731,849

13,886,786
35,830,002
962.550

representa¬

City

offices

en¬

1,135,647

profits—

Struthers has been
appointed a member of the Ad¬
visory
Board of Manufacturers
Trust
Company's Fifth
Avenue
H.

George

York,

New

Oct.

nounced

"■

•

an¬

was

Horace

Flanigan, Chairman of the Bank's
Board of Directors.

in charge of Bankers
i The bank said that its regular President
checking account customers short¬ Trust Company's Delancey Street
ly will be offered an opportunity Office, New York, died Oct. 17,
>
to enroll in the Plan, but that any His age was 61.
Mr. Gruber began banking work
individual
who
meets
normal
credit- requirements
to join.,

will be able

1. The

bank

Chase Man¬
Plan works:

will

issue

credit

consumer-members

making purchases from

for

retailer-

members.

Trust

receive

when the two institutions merged.
He

named

was

Cashier

1936;

immediate

the

Directors

the

in the bank. The bank will charge

the retailer

Oct.

3. Consumers
bank

once

billed by the
month for Plan pur¬

are

chases, with an option of extend¬
ing payments over a five-month

Trust

Company,

special

meeting

the

Board of City Bank Farmers Trust

York,

New

22, by Gerald
if

director.

offering to its stockholders the
right to subscribe at $225 a share
for

was

ren's resignation. as

President of The

Mr.

War¬

Senior Vice-

First

National

City Bank of New York effective
Nov. 1.
t

iit

The

appointment of John Augello, George R. Bennett, Jr.,
Frederick A. Cardinal and Harry
B.

Pangburn

Assistant

Secre¬

taries of Manufacturers Trust Co.,
New York, is announced by Hor¬
ace

the ratio of

one

Flanigan, Chairman of the

Board.
Mr.

Augello and Mr, Bennett
joined the bank in 1944 and are
assigned to the Comptroller's De¬
partment at 44 Wall Street.

celsior

Cardinal

Manager
Office.
1920.

of
He

the

Branch

bank's

joined

Jamaica

the

bank

share for

paid Oct. 1, consisted of $24,000,000
of capital stock, $16,000,000
surplus, and undivided profits of

$5,839,821.
the

for

Net

operating income

months

nine

ended

Sept.

30, was $3,099,000 or $12.91
a
share, based on 240,000 shares
outstanding Oct. 1, as compared
with the net operating income of
$2,946,000 or $12.27 a share for
the same period in 1957.
Dividends
nine

declared

months

1957

the
and

first
1958

$6 and $7 a shafe, respec¬
tively. Net operating income for
the

year

$19.14

Pangburn joined the bank
in 1954 and is assigned to the In¬
ternational Banking Department

year

at 55 Broad Street.

set

George F. Taylor, for
27

years

member

than

the Bond

Department of Bankers Trust Co.,
New York, died Oct. 16.

His age

62.

was

Mr.

Taylor
joined
Bankers
Company in 1930 as the

Trust

bank's

Philadelphia

correspond¬
ent-. In this capacity he developed
#nd managed the Philadelphia of¬
fice of the bank until 1942 when
he returned to

the Bond Depart¬
ment in New York. He was named
Assistant

Vice-President

1947.
*

BROWN

BROTHERS,
NEW

HARRIMAN

Total

resources

Deposits
Cash

CO.,

231,265,631

June 30,'58
|

Board
of

rity holdings
Loans & discounts

37,423,395

56,281,667

59,045,912

64.815,901

Capital and surplus

16,542,458

14,685,284

Govt,

secu¬

$4,594,000

was

its stock in each

;

then

New

continued

bank 48 years.
if

The

have been elected Executive Vice-

Oneida National Bank and

Trust

Company

N. Y., with

effected

was

The

and

Bank

Trust

and

Company of Utica.
*

The
Glens

capital

National

Falls

CI-

fied

Valley

Oct.

greater

and; the new Vice-Presidents
serve

Trust

said.

Webb

Mr.

last, its assets to¬

Russell

Berman

elected

was

in the
headed by Mr.

Assistant Secretary to serve

and its total de¬

credit department

posits were $7,322,000. On Sept. Lewis. Mr. Berman has been with
30, 1958, First Pennsylvania had the bank for the past five years.
total assets of $1,137,103,000 and
In the trust department, headed
total
deposits of $1,010,557,000.
by Mr. Knight, William S. Miller,
According to the proposed merger Robert A. Bower and Benedict J.
agreement, each share of Hunt¬ Smith
were
elevated
to
Viceingdon Valley Trust Company's Presidents.
stock will be exchanged for 1%
Clyde C. Brown, Assistant Sec¬
shares of First Pennsylvania Com¬
retary and Assistant Treasurer,
pany's stock. All officers and em¬ has assumed the direction and
ployees will be retained following
management of the bank's Park¬
the approval of the merger.
way Plaza office in Maumee, Ohio,
if
if '
if
'7/
Mr. Webb said. He has been with
The
merger
of The National Ohio Citizens since it opened on
Bank
of
Pottstown,
Pa.;* with March 28, 1932.
.

stock

and

Bank

department,
Mr.

headed by Mr. Wilkinson and

established in 1920

was

talled $8,002,000

common

Toledo,

Company,

In the banking

Ohio.

Huntingdon

Company

Oneida

National

Trust

izens.

departmentalization
will
; as
divisional heads with
tions have approved an agreement
Franklin V. Barger and Arthur B.
of merger, subject to approval by
Bare, Vice-Presidents, heading the
stockholders of the two banks and
mortgage and loan and personal
the supervisory authorities.
loan
departments
respectively,

of the close of business Oct. 3.
consolidation

is
announced
by Willard I.
Webb, Jr., President of Ohio Cit¬

jointly that the {Joards of Direc¬
tors of their respective- institu¬

stock of $1,-

453,820, merged with Rome Trust
Company, Rome, N. Y., with com¬
mon
stock of $300,000, effective
as

eight others have
Vice-Presidents,

and

been advanced to

Company," Pa.,' announced

Trust

Utica,

common

Presidents

DuBois, J. Arch Anderson, Harold
Kelly; coresident, W, Kreamer, Willard I. Webb, III,
The First Pennsylvania Banking
PauL F.\ Lewis and Lawrence I.
and Trust Company, Philadelphia,
Schiermyer
were
named
ViceFa., and George B; Hallowell, Presidents.
:
'• ■
President,
Huntingdon
T Valley
Growth of the bank has justi¬
William

■.

■

been with the

He had

Bank

Va.,

Mount,

advisor to

honorary

the board.

National

Peoples

-the

to.

Office. In Septem¬
ber 1953, Mr. Townsend - was ap¬
pointed Assistant Manager of the
Gulf Building Office and in April
1956, was appointed- Manager of
the McKnight Road Office.

1952,
the
of Trustees until the spring
He

The

increased its
capital stock from. $250,000 to $350,000 by the sale of new
stock;' effective Oct. 9,, (Number
of
shares
outstanding— 35,000

Gulf Building

;

member

for

years

Rocky

the " Installment

Department.

transferred

was

Smith

Trust Company, Glens Falls, N. Y.

increased

from

$680,000

stock dividend, ef¬

outstanding
value

32,640

—

shares,

Bank

price of $41

New

York
on

The

offering is part of a pro¬
posal for increased capitalization
which holders approved at a spe¬
cial meeting Oct. 14.
They ap¬

proved

2-for-l

stock

par

$25.)
*

The

❖

capital

common

stock

The First National Bank of Attle-

boro,

Mass.,

$400,000

from

increased

was

$500,000

THE

FAIRFIELD

COUNTY

TRUST

CO.,

June 30, '58

$ '
Total

125,123,483.120,730,839

and

due from

banks
U.

tecu-

holdings

rity

13,012,632

13,848,364

Govt,

Loans

132,443,735

137,104,603

resources

Deposits
Cash

,■

37,680,453

36,701,344
69,058,834

66,770,827

profits—

1,342,106

1,578,540

stock

$12.50

par

the

form

shares.

the

new

The 6,000 new shares

being of¬
by rights are part of the
7,080-share increase. Holders of

fered

record Oct. 15 will be able-to sub¬
one

eight held.

new

share for each

The offering will

ex¬

died Oct. 14, at the age of 59. Mr.
Dana started his banking career
as

Assistant

the

First

Na¬

1,080 shares
as

are

stock

in December.

all these steps

the

bank's

Result of

will be to increase

capital

$668,500,

and

individ-;

•*'

►

sjt

„

Caswell

Wilson,

institutions

both

the

County Bank

Montgomery
Trust

continue

and

Company will how. be in. a

position to serve 122 communities
in the County.
It will "have nine
offices, seven parking lots and

1957, died Oct, 19 at the

three drive-ins with another soon

Mr.

of the First Bank and Trust

Wilson

started

with

career

the

of 70.
banking

age

his

Commercial

Merger
Oct.

certificate

issued

was

Oct.

3, the

merger

Trust

Peoples

Company,
common

West-

stock of

$400,000, into The National State
Bank, Elizabeth, N. J., with com¬
mon
stock
of $1,875,000.
The
merger
charter

was

effected

and title

under

the

of The National

State

Bank, Elizabeth, N. J.
Previous
article
appeared

this

column Aug.

Paul

28 on page 818.

Gorman

was

elected

of the Fidelity Union Trust

the

Gerald

Anderson, Melvin

Carl, Horace C. Coleman, Jr.,

Oliver C.

Conger, Joseph L. East-

wick, Leonard T. McCloskey,.Wil¬
liam A. O'Donnell, Jr., Maxwell
Strawbridge, John
T. .Whiting,
and Franklin

The

L. Wright.;;

officers

are:

•

Com¬

Rahn, Franklin C. Hutchinson and
William
W. Wilson, Vice-Presi¬
dents, and Merrill A. Bean, Treas-

President, announced.

Andrews,
of

the

...

River-Livernois

Grand

modeled:

The Michigan Bank,
Detroit, Mich., took place Oct. 16.
of

branch

v•

;

■ ...

■

•J*

" ' "

,
.

By a stock dividend, the com¬
mon capital stock of Liberty Na¬
tional Bank and Trust Company
Louisville, Ky.,

shares,

outstanding—140,000
-»••

par

$25.)

value
••-

;•

Election of Donald P. Flynn as
an Assistant Vice-President of the
Republic National Bank of Dallas,
Texas, was
W.

announced by James

Aston, President of the bank.
Flynn will be active in

Mr.

Republic's National Accounts Di¬
"i "

vision.
With
and

•

the

1946, Mr.

Okla., since
served

National

First

Company

Trust

Bank

Tulsa,

Flynn has

that Bank as an Assistant

Vice-President

National

the

Corporate Accounts Division and
as
a
commercial loaning officer.
if

for¬

stock

Na¬

has

His age was 77.

increased

was

$3,250,000 to $3,500,000, ef¬
fective Oct. 6. (Number of shares

from

Jr.,

Bethlehem, Pa.,
Mr.
joined First National in
14.

; '

...

opening of the newly re¬

Grand

First

tional Bank, NeM'

Andrews

National Bank, Chicago,

Salle

111.

Bank,
E.

•.

■

Harry E; Mertz has been elected
Vice-President
arid
Auditor
of
v:

An increase in North

President

died Oct.

' Hi

t.'H:

•

Norristown

Division, Main Office, Melvin L.
Carl, President; Gerald M..Ander¬
son, Executive Vice-President; B.
Brooke Barrett, Howard W. Shel¬
don, J. Warren Ziegler, Oscar T.

Charles

Edward

Robert, O'Boyle, and Irving Sea¬
man, ,Jr.,: Vice-Presidents in the
commercial banking department.

Newark, N. J., Roy F. Duke,

bank's

surer.

member of the Board of Directors

pany,

in Norristown;

Directors of the combined bank
are

Bank

to be opened

Na¬

tional Bank, Little Rock, Ark.

National
Chicago, 111.
Dresselhuys,

Co.,

Trust

elected

of last Friday,

17, shows assets of $95,922,total deposits of $84,471,303
and trust funds of $68,561,425:,
All officers and^employees- of

4 '

Chair¬

Company of Perth Amboy, N. J.,
and
its President from 1937 to

man

Bank

Oct.

mer

dividend

industry

uals.

staff.

tional Bank of Kewanee, 111.

distributed

both

the.community

335;

Company, Hartford, Conn.*

pire Nov. 10.
The remaining

—of

Trust

field, N. J., with

capital

the needs of

combined banks

7,080-share

paved the way for the formation
of a larger, stronger horn d-d wned
bank" with
ample: ' resources
to

❖

Continental Illinois

Federal authorities has

Everett V. Dana, Vice-President
of the Hartford National Bank and

approving and making ef¬
fective, as of the close of business

increase

State and

The published statement of the

split, in¬
creasing shares to 48,000 of $12.50
par value from 24,000 shares
of
$25 par value. They also voted a
a

August,

Pa.,
became

reality Oct. 20.
Approval of stockholders and of

serve

discounts

Undivided

last

announced

STAMFORD, CONN.

and

Bank

Company, Norristown,

Trust

Sept. 30, '58

County

Montgomery

shares, par value $50.)
Hi

stock

dividend, effective Oct. 7. (Num¬
ber of shares outstanding—10,000

James

:!i

fective Oct. 10. (Number of shares

s. *

subscription offering
to
stock¬
holders of 6,000 new shares of its
stock.

to
58,919,079

_____

Excelsior

1958.

serve

Mr.

15.

Na¬

York

common

tcf Mellon

came

Manager

Loan

Ex¬

retired

since its foundation.

Merchants

261,554.414

32,990,570

1957

share. The Bank has paid

185,447,525 222,155,734

and due from

banks
U.

scribe for

YORK

Sept. 24,'58

20th

Bank

Oct.

from

remaining

shares of
value

eight shares of stock held of
record on Oct. 21. The offering
will expire on Nov. 14.
The capital funds of the Bank
as of Sept. 30, adjusted to reflect
a
50% stock dividend which was

cash dividends

Mr.

71,

Savings

died

York,

were

Mr.

Townsend

Mr.

ecutive Vice-President of the Ex¬

par

new

each

Also announced

his

Smith,

$816,000 by
is

York

New

30,000 additional
capital stock of $100

Bank

appointed

was

also

and in 1952 went to Mellon Bank's
Everett

was

Company, New York, held Oct. 15
Warren

the--Chase
New

before he came
Wilmington Trust in 1932.

;

Townsend has

for

Bank

shares, par value $10.)
1948, he
....i *
* A -- vi
Union
Marvin M. Wilkinson, DurwOod
year
Trust Office to manage the In¬
C. DuBois and Robert L. Knight
X stallment Loan
Department there,

dinner

Cashier

Mr. Dononue was Assist¬

Oct.

Ed.

was

Beal, President.
The

marking

Schroder Banking Cor¬

announced

period.
At

Ilenry

ant

seven

■

the bank.

poration, New York and Schroder

small service fee.

12.

tional

appointed Assistant Cashier
the Banking Department.
v ; :

under the charter and title of The

Dowell

Office

tnat

Edward

President,
Bank,
New

Savings

with

The

of Dudley

Board

1942.

election

The

and

1939

Assistant

Vice-President

Assistant

the

Del., died

Wilmington,

Oct.

been
•

Company,

•

Denton,

honored at

was

ager

Stanley
■

if:;.

an¬

banking
East Liberty Office

Bank's Wilkinsburg Office in 1946

Manhattan

York,

New

Company,

subsequently joined
Trust Company in 1955

Bankers

credit for such

purchases by de¬
Charge Plan sales slips

Willard

Bank

National

1922.

Vice-President

2. Retailers

positing

Public

the

and

;

Here's the way The
hattan Bank Charge

cards

with

tne late
*,

*7'

retired

Vice-

Gruber,

Benjamin

;

the

serving until 1954.

President of the Wilmington Trust

ly23, and worked in various
phases of banking.- In July 1947,
he was appointed Assistant. Man¬

He has been

Matus.

■

York,

rolled local merchants and trades¬
men.

secu¬

holdings

Auditor

Danx,

President

.was

Francis M. Donohue, 58, a Vice-

;

his

started

bank 27 years,

the

ceeds

_________

Govt,

rity

the

auditing department since
1953, was made Assistant Auditor
in September 1957, and now suc¬

and due from

Ciish

Office,

tives from The Chase Manhattan's

Mar. 4, '58
5182,775,745 $73,689,090
74,178,673
65,936,980

Sept. 24, '58

Charge Plan

its

COMPANY, NEW YORK

COLONIAL TRUST

the

;;;

Colton

Mr.

with

nounced.

was

has served

and

in various capacities.

Chase

tne

lon National Bank and Trust -Co.,

Vice-Chairman

Dime

1905.

JkutsDurgn, Ba., Prank R. ueriton,

been

Union

Colton has been ap¬

Assistant-1 V ice-Jf resident
East Jbioerty Oifice of Mel¬

career

Mr.

CAPITALIZATIONS

The

has

Savings Bank, New York,
announced Oct. 16.

Bankers

and

ETC.

.'.--V

Auditor

elected

CONSOLIDATIONS
NEW OFFICERS,

Robert
pointed

Halbouty,
The

Texas,
capital
from $175,000

Houston,
to

been

$300,000

announced by Michel T.

Board

71%

fected by

Side State

Chairman.
will be

increase

paying

ef¬

stock dividend

Volume

188

Number

5788 /.

The Commercial and Financial Chronicle

(1691)
from undivided profits, Par value

and

of the Bank's

ized

stock is reduced

share from

ner

reouifing^tri

S20

share,

four-for-one

per.

stock

split to shareholders.

tion's

able

stock
to

Mr, Halbouty said that
DtP bUr

institu¬

being made avail¬

the

increase

capital

February,

CONDITION

stock

York

of. New

20,

Y.,

this

district

the

Federal

"£

the

Reserve

the

Bank

V--,

:r,^,

ASSETS

including;t

balances,

and

_in process of
United
States

"obligations,,

items

collection.—

"Vi

14,770,470.75
5,15!)., 103.71

(including

oral

Reserve

1 eluding
,

120,000.00
(in-

$10,817.01

drafts)

$201,568.78—

liability

institution

499.490.04

this

-:J

acceptances

.outstanding.-

1,329,577.11

CNher assets

000.408.00

TOTAL ASSETS———

$82,775,744.92

.Based

the

number

VNB

_■

Two

Edward
A.
Schneider, Senior
Vice-President,
and
Wilson
P.
Cannon,
Jr.,
Assistant
to
the
President, opened the new Kalihi

an¬

ers

one

VNB

approve

'ssuance

outstanding — subject to
by the U. S. Comp¬
of Currency.
Price per

concurrence

share of the

issue will be sot

new

Bank

Hawaii,

Hawaii, on Oct.
16.
William Bains-Jordan, Manager of
the.

Branch, assisted with the

new

ceremonies.,

The

Kalihi

office

Branch

the

Bank

the

office

Hawaii opened their 33rd and 34th
office — at
Kailua-Kona,
and

Waimea,

the Island of Hawaii.

and

John

Nichols

members

the

Pacific

Coast

Stock Exchange.

all

states,

well

sev^rgl, foreigp countries.
Currently, Valley Bank operates
55
offices
throughout
Arizona,
with representation in ^11 14: coun¬
Two

offices

slated

are

LOS

ANGELES, Calif. —Ralph
has

Dalton

with

become

associated

Mitchum, Jones & Temple650 South Spring Street,

ton,

members

Pacific
Mr.

the

Coast

Dalton

New

Stock

York

and

Exchanges.

formerly

was

with

& Co.

checks,
;

Chicago Great Western

stitution

and

this

Net

income

Western

in¬

outstanding

liabilities

1,357.197.99

JCOTAL LIABILITIES

CAPITAL

ACCOUNTS

Capital 1

$70,002,982.89

2,200,000.00

fund
Undivided profits.————'
Surplus

2,700.000.00

—

R< serves. •

-1.185,047.09

and retirement ac¬

count lor

preferred capital >

87.115.00

ACCOUNTS

$0,172,702.03

—__

CAPITAL

ACCOUNTS—

$82,775,744.92

bank's capital consists of: capital
noLeS' and debentures $700,000 and common
with

2Assets

total

;

pleccecl

other

dropped $1,950,000
or
12.9% from a year ago during
this period.:

Charles

Bailey,

Vice-President

institution,
hereby certify that the above statement is
true
to
the
best
of
my
knowledge and
Treasurer,

the above-named

belief.

CHARLES

BAILEY

eight

Charles

Benacerraf

James

i WHICH

Jr.j

Johnson.

AFFILIATE,

AFFILIATE.
IS

|
[Directors

Deyo

Baruj

COMPANY

BANK

THE

MEMBER

HOLDING

FEDERAL RESERVE SYSTEM.
LISHED

THE

000

been
been

FEDERAL

RESERVE

Trust

PUB¬

Industrials

Company,

A..

York,

New

prises

business

and

control:

affiliated

dent

Ownership

and

701

degree

stock

relations

bank

with

owned

bank:

Stock

by the affiliate

(par

$1,050,000.

Hugo A. Brillembourg. Executive Presi¬
of

A.,

Valores

Comerciales

solemnly

statement, is

swear

Industriales

that

the

true, to the best of my

above

knowl¬

edge and belief.
HUGO

period.

of those

consequence,

the

balance

mated

that

income

taking
the

tax

with

Prospects

pansion

same

net
the

sums

required
put out

are

to earn dividends

is from

this

the

now

ex¬

is esti¬

net

year

equivalent

interest

account
This

$6.96

company

underwriting profits to
warrant passing on to its stock¬
holders some of its large under¬
writing profits. The writer recalls
only one instance in which this

would

BRILLEMBOURG.

Boston

for

Minn.,

will

Federal

get

large sulphuric acid plant which
bring added traffic.
The

financial

carrier
of

condition

done; it was for several years
practice of a unit that was (and

183

134

100

225

175

108

full

year

further
and

net

ex¬

in¬

With freight rev¬

Fidelity Phenix
Fireman's

Fund

Glens

Falls-

131

Great

American

137

Hanover

Insurance:

Hartford

Fire

Home

Ins.

New

No.

150

Fire to

117

113

Union

243

226

Reliance

Wash....

210

197

142

134

Insurance-

116

Fire

133

126

152

Springfield F. &
Westchester

102

•

Insurance

States

160

116

St. Paul Fire Sr. Marine

Security

187

Insurance—-,

Frovidence

150

231

Insure-me

Insurance

United

185

199

River *.*/_'

Phoenix

106
*

145

Amer.

Hampshire

North

154

204

Insurance

Co.

Casualty Companies:
Aetna

Casualty-

191

184

Reinsurance

130

158

Surety
Continental Casualty h

American

291

442

Fidelity & Deposit

-»-.f.>18

-j

103

Seaboard

225

193

274

208

still is)

piling
ing profits as

up
a

large underwrit¬
specialty carrier,

well able to sweeten the

was

But this case

investment

St. Paul

a
a

Gty—

American

American
b

Insurance

Fire not
Casualty data.
the

include

data

Automobile.

KationaJ

nental

included

Conti¬

Home

Insurance, a
potent influence in 1948 was the merger of

rarity.

Surety

Fid.

philosophy

Fire

and Marine,
proportion of

large

very

its

case

10 affiliates.

There

will

at once be apparent
disparity between the
figures in the two decades, only
two years apart.Not only was

sizable

there

a pronounced shortening up
incoming investment funds go¬
nicipal bonds, and a still greater ing into common stocks, but a
ratio when U. S. Governments are number of
companies nursed their
included, will not show the same cash, or, in many cases, did much
trend
as
a
Federal
Insurance, transferring of funds from equities

investments

which

state

much

leans

and

less

general

bonds,

But

this

companies

bond-holding

rule,

show somewhat

heavily

toward equities. As a very

mu¬

growth

over

municipal

state,

long period than do those that

there
To

are

into

equities,

marked

although

well
well

county

and

to governments.

that

remember

ten-year tabulation, not

exceptions.

bring

out the changes

occur

may

portfolio

merely

longer

the

that

manage¬

single

the

and

year;

have

way

Capital Gains Tax

$6,338,000, and
William
Jackman,
President,
current liabilities were $6,173,000.
announced
that
the
Investors
Net working capital on that date
League, New York City, has re¬
aggregated $4,521,000 up from the tained the Institute of Economic
$3,625,000 reported at the end of Affairs of New York University

than probable that a

to better ratios is

now

It is

return

in process.

James Fallon Adds

Study Impact of

periods

ironing out such differences.

(Special to The Financial Chronicle)

continues comfortable. As

amounted

106

180

Massachusetts Bonding

July 31 cash and cash equiva¬

lents

IOC

131

was

con¬

soon

152

Insurance

Insurance——

Continental

should

LOS

Calif.—

ANGELES,

Anthony J. Arnato, Lewis Lazarus,
Howard
H.
Smith,
Wilson
J.

1957.
It

to conduct an
is

believed

the

management

has dropped the idea of

exchang¬

ing the $2.50 preferred stock for
income debentures because of the
poor

from

response

indicated

by a
However,

stockholders

poll taken this
in view of the

wide

survey

independent nation¬
of individual and

fiduciary investors to determine
the probable effect of Treasury
revenues that might ensue if the
maximum Federal tax on long-

fact the railroad could obtain tax

capital gains were to be cut
in half as provided in legislation
to be introduced in the next Con¬

savings of around 80 cents

gress.

an
a

exchange,

new

and

term

Squire, Jack M. Stafford and MarMason have joined the staff

cell

of James L. Fallon Co., 7805 Sun¬
set Boulevard.

With Fox & Carskadon
(Special to The Financial Chronicle)

SAN MATEO,

Erickson,
and

Many of the nation's lead¬
ing carriers have been successful
in the past few years in develop¬
ing plans of exchange of preferred
stock for income bonds with

NATIONAL
GRINDLAYS

OVERSEAS
BANK

AND

LIMITED

$2 annual divi¬

growing territory and with good
traffic potentialities, it would seem
possible that the cash dividend
a

rehabilitation

Great Western should bring down

completed.

might

augmented
program

now

Almalgamating National Bank of India Ltd,
and Grindiays Bank Ltd.

13 N. Y. CITY
BANK STOCKS
3rd

Head Office:

once

has

the

been

13 ST. JAMES'S SQUARE, S.W.I
54 PARLIAMENT STREET, S.W. 1
Bankers

the Government in: aden, Kenya,

uganda, zanzibar a somaliland protectorat1
Branches in:
india, pakistan, ceylon, burma, kenya,
tanganyika, zanzibar, uganda,

Quarter Earnings

Comparison

26 BISHOPSGATE, LONDON, E.CJ

dend basis and also will pay 2^%
in stock on Jan. 6, 1959.
Serving

likely to grow and a high
degree of operating efficiency, the

MacGurn,

& Carskadon,

Inc., 2000 El Camino Real.

con¬

sequent tax savings.
on

affiliated with Fox

revised

future.

The road is

Calif.—Harold F.

Edward

Samuel N. Simpson are

plan might be brought out in the

common

enues
A.

Roseport,

Insurance——

manage¬

industrial devel¬

tinues to grow and

156

Bulletin

London Branches:

the

revenues

next year.

opment

J 97

National

to dip into income from under¬
writing to pay its stockholders'
dividends; and there is only one

The

Shippers—

Bankers

Pacific

indeed for

rare

150

source

derived.
It is

193

National

are

821

companies

1948

1581
70

Northern

insurance

1957 Over

1946

Aetna Insurance

The

that

are

its line.

possible

full

the

for

such

year

aggressive
policy in attracting new industries

through

ago.

operate

basis.

year

refund.

reported

1957.

come

into

continues

income over

share before funds and

common

not

for

will

the

around
of

cost

year.

recent weeks have

time

same

ment

inter¬

with 30.6%

compared

1957

compare

bank.

Financial

32.3%

the

levels

affiliated with member bank,

value*

securi¬

enterprises.

in which above-named organization

member

this

investing

such

Manner

♦

programs.

esting to note the high rate of
operating efficiency displayed de¬
spite the drop in revenues. The
transportation ratio for the period

picked
of

1958,

affiliate; Lending
to commercial and industrial enter¬

money

work

Revenues

ACT

level, showing
$471,000 or 6%
The funds were

pected to expand.

Kind

year ago.

con¬

on
new
bridges,
roadway and extensive yard mod¬

York

ties

only

was

the

lower

If this

year.

work

high

This

included,
net
would
larger than a year ago.

for

was

Caracas, Venezuela, which is affiliated'with
Colonial

under

months.

May of this

drop

used

THE

24,

September

Comerciales

Valores

tinued
a

compared with

1957

did not include $671,income on a tax re¬

interest

fund

the
$4.18

for

amounted

the

net income

WITH

ACCORDANCE

PROVISIONS

Report

per

months

common

ernization

Correct—Attest:

REPORT OF

income

Maintenance
$8,157,200.34

—_

part of higher gross to
Modernization of the Kansas

net.

revenues

have

assigned

purposes

rev¬

large

Gross

to secure liabilities and for 2'

this

$2,203,000, down
only slightly from the $2,442,000
reported in the like 1957 months.

had

value of $1,500,000.

par

-MEMORANDA

Great

well

drop in gross

amounted

net

$4.80

tTliis

Chicago

City yards is expected to be com¬
pleted shortly and work on the
Chicago yards is underway. This
should improve the road's com¬
petitive position in enabling it to
give better service to shippers and

TOTAL LIABILITIES AND

of
held

For the first eight months

Net
CAPITAL

TOTAL

has

despite

year

1,007.112.01

——2

enues.

stock

its

These

substantial

carry

reserves,

with

1.000.114.03

etc.)
.

executed

account;

by law.

that
17,239,719.70

ing in, and they

edly influence the ten-year growth

DEPOSITS $74,178,072.89

Acceptances

Other

companies are concerned.
Companies have large amounts of
premium money constantly com¬

of investment income. It is obvious

702,500.00

—

ficers'

in¬

different managements can mark¬

2 575.077.40

•

TOTAL.

far

surance

The

States

—

j'for

an
adjunct
part of the business

was

Deposits of States and polit¬
ical subdivisions
Deposits' cl banks and trust
"companies
Other deposits < certified and

;

operations are just
to the underwriting

amounts

1955 Over

Companies:

American Insurance

Investment

7,548.980.48

'Government

•o

of the end of 1957.

Increase in Invest. Inc.
Fire

Agricultural-.--...*:....

corpo¬

United

abovo:

rations

31, 1955, and the

part of its business.

$40,392,275.22

Deposits,

will

stockholders' payments out of this

Time deposits of individuals,

and

ended with Dec.

and

deposits

partnerships,

wck

enough

(Special to The Financial Chronicle)

Dean Witter

before the year-end.

This
an

justification for this: the company
must consistently be earning large

Mitchum, Jones Adds

by Arizona residents—al¬
though shares are held by inves¬

ment even for what
might be said

investment subject,
the increase in investment income
in
two
ten-year periods, one
on

are

now
affiliated with Quincy Cass
Associates, 727 West Seventh St.,

later date, Mr. Binson said.
Bulk of Valley Bank stock
is

companies.
also be

ANGELES, Cal.—Henry C.

Gutsch

Insurance Stocks

that dividends to the shareholders

tors

rents, and

(Special to The Financial Chronicle)

LOS

—

discussed

change in the value of assets to be a short period', we
give the
20-year period, as shown by increases in investment income for
group of leading fire and casualty the two ten-year
spans mentioned

at interest

Quincy Cass

ago

36th

Hawaii

new

weeks

the
in

other

opened this year on the Island of
Oahu—Camp H. M. Smith Office
being the first. Last year, Bank of

recom¬

share of stock for each

new

now

the

Honolulu,

Oct. 15 that stockhold¬

asked

in Feb¬

also

By ARTHUR B. WALLACE

This Week

Palmdale.

Two With

directors
on

Calif.

distributed

was

Angeles,

established in the

chain. It is the second

■;

•

Los

were

ridge and First National Bank of

of this year.)

ruary

to open

of
indi: vidua Is,
partnerships, and
2 corporations

An¬

National

Palmdale,
absorbed by Califor¬

were

Bank,

Branches

Los

First

Palmdale,

former locations of Bank of North-

22,

currently outstanding, the
board's action brings to $1,529,000

ties.
LIABILITIES

Demand

snare

Nortliridgc,

of 2

Calif.,

owned

owned
furniture and

$237,927.20,
fixtures

per

40.731.849.03

premises

Customers'

z5c

quarter

nounced.

National

8, payable Dec.
President iCarl
A.
Bimson

ovcr-

—

Banking

Valley

Dec.

troller

;;

Bank)

discounts

and

.$120,000.00 stocks of Fed-.
Lbans

7 1
2
1,191,837.92

and de.

stocks

record

mended
1 '

cash dividend for stockholders of

and

—„—.

bonds^notes,

$18,354,996.30

Government

-bentures

Corporate

;

increase

Phoenix, Ariz., authorized

dividend

!. ',';

cash

of
States
and
subdivisions,.___

political
Other

direct

.'guaranteed

Obligations

esctve

Bank

and

the total cash dividends voted thus
far in 19582
(In addition to the
four cash dividends, a 10% stock

Cash, balances with other
"banks and trust companies,

undivided

stock

surplus accounts, raising
total capital and sur¬

fourth

provisions

Act;,

from

capital

Directors 2; of

Federal Reserve

pursuant

the

Calif. :and

Branch

Reserve

New York, and the

Majority interest last
total of $375,000 has

to $650,000, an
136%, from $275,000.

System, at the close of
bO'siricss on September 24, 1958,
published
in accordance
with
a
call made < by
the
Superintendent of Banks pursuant tor. the
provisions of the Banking Law.of the State
of

purchase

Bank's

Bank,

member

oilman's

certified

Colonial Trust

Federal

Banking

Bank

geles,

nia

plus

Company

State

transferred

profits
the

REFORT

the

bank's

present stockholders, em-; been

The

Faulkn,er,

Since

limited

the

M.-,

Commissioner;!

plovees, and Bank customers.
.

stock split were author¬
by an ^friend ment to the
Bank's articles! of association by

the

Request

Laird, Bissell & Meeds
Members New York Stock Exchang*
Members American

120 BROADWAY,

Stock Exchange

NEW YORK 5, N. T.

Telephone: BArclay 7-3590
Bell

Teletype—NY 1-1248-49

aden, somaliland protectorate,

(L. A. Gibbs, Manager Trading Dept.)

northern and southern rhodesia.

Specialists in Bank Stocks

The Commercial and Financial Chronicle

(1692)

certain

Continued from page

the

segments,

forest

Continued

products industry; Sales reached
high of $147,649,368, an increase
of 21.7% over 1956.
Net profits,

from

Thursday, October 23, 1958

page

The Security I Like Best

of 14.8% over the previous

crease

Earnings on

year.

Douglas fir plywood, hardboard the U. S. Government in August,
plywood, Savannah paneling (a 1955. However, neither the direc¬
pre-finished hardwood wall panel¬ tion nor the timing of develop¬
ing of random width available in ment plans in that area have been
oak, ash, cherry, mohogany, and crystal ized.
walnut), a low-cost, grain-tex¬
Although acquired in 1956, in¬
tured
decorative
wall
paneling itial benefits of Coos Bay Lumber
marketed under the "Ripplewood" and Hammond Lumber should be¬
trade name, and plastic-faced ply¬ come apparent this year, due pri¬
wood. California redwood, one of marily to tax considerations. This
the most attractive and durable stems from the Federal income tax
woods, is manufactured at com¬ laws regarding capital gains on
pany
mills in northern Cali¬ timber harvesting. If an integrated
fornia into siding, finish, lumber lumber or plywood producer pur¬
and
striking specialty products. chases timberlands and waits a
Georgia-Pacific is producing Cali¬ minimum of six months, the dif¬
of

fornia

redwood

cialties at

12%

lumber

annual

States'

United

the

and

spe¬

raie of about

total

between his cost and

ference

the

going market price of the timber
is

harvested

when

treated

basis

$2.62

the

of 3,224,173 shares out¬
standing during 1957. This com¬

with $2.84 per share on the
2,58.9,180
average
number of

pares

Prospects for the remaining
months

1958

subsequent

and

be viewed with consid¬

years can

more
optimism.
Many
home builders have jacked up the

erably

number

houses they plan to
together this fall before
weather sets in. Sparking
of

hammer
the cold

the upturn in
this year has

construction earlier
been a mixture of
mortgage money, effects of

easier

housing
act and the summer building sea¬
son.
Although the Government's
the Federal anti-recession

tion-insured mortgages, Is a hypo¬

whereas its "going market price"
products. The fore¬
is considerably above this figure.
going does not include estimated
At the time the timber is har¬
annual sales of $14 million from
the
the pulp and paper mill completed vested the spread between
in Jate 1957. Starting its first con¬ cost price and market price is
taxed at the capital gains rate of
tinuous production on Jan. 6, 1958,
the new $22,000,000 mill, located 25%, and since the cost of the
timber used as a raw material in
at Toledo, Oregon, went through
its shakedown period in the first making lumber and plywood is
computed
at a relatively high
quarter and should be well on its
level, only a fairly small amount
way to normal operation for the
of profit is derived from the fab¬
balance of the year. The plant has
ricating operation, which is tax¬
an
initigjn daily capacity of 250
able at the regular corporate rate.
tons of kraft paper and container

board and will utilize wood-waste

chips

from

merly

sold

mills

company

for¬

outside

pulp and
Long-term sales

paper interests.
contracts, covering the major por¬
tion of production, place the new
operation considerably above the
break-even point.
Currently, 85% of Georgia-Pa¬
cific's
production
comes
from
company mills located in the Far
West, while those in the South
and East contribute the remainder.
Their combined annual productive

capacity is placed
feet

square

and

hardboard,

feet of lumber.
of

the

at 619

million

plywood,
and 567

veneer,

million

The major portion

company's

timber

lies

the

Pacific

coastal

range

the

soil

fertile

and

where

climatic

These factors resulted in the com¬

pany's effective tax rate in 1957
being only 30% of earnings before
taxes.

basic

The

growth

pattern

for

fir

plywood, kraft paper, board
and plup is likely to continue over
decade

the

and

current

abundant timber supplies may be¬

thing

are

such

to insure

annual growth rate in balance
tnc original
inventory, di¬

vided by the number of years of
harvest rotation. While it is rec¬

diminishing, resulting from the

concentration

of available stands
in stronger hands.
Investor
attention
focused
on.

Georgia-Pacific late in 1956, fol¬
lowing company announcements
of two

major timber acquisitions

•—Coos Bay Lumber
Company and
the Hammond Lumber

Company.
acquisitions, costing
$70,000,000
and
$75,000,000, re¬
spectively, and financed princi¬
pally by long-term borrowings
These

two

from banks and insurance
compa¬
nies and through the issuance of

subordinated

debentures,

was

pre¬

received from

pro¬

duction by the new

pulp and pa¬
per mill.
The mill is operating
above the break-even point and is
expected to contribute about $0.50
in

this

earnings

year,

present conditions in the
industry. Start-up expenses lim¬
ited
first-half
1958
earnings to
based

$1.14

results

share, but final-half 1958
show considerable

should

improvement. For the full year,
earnings are estimated at $2.75 a
share (including the paper mill)
based on the current capitaliza¬
tion.

Current

dividends

cash

supplemented
by stock payments and this policy
is likely to continue; 2% stock
$0.25 quarterly are

California redwood

prices also remain firm, reflecting
this
wood, particularly for residential

continued strong demand for

and

commercial

use.

Prices

for

sanded fir plywood have been ex¬

without

September, 1956.

steady

ricated level.

recourse

additional

long-term debt commitments. At
the 1957 year-end, total
debt was $135,836,600.

long-term
Although

Over the

longer term, Georgia-

Pacific,
with
its
huge
timber
stands, is expected to reap the
benefits of the country's future
economic

against net cash gen¬
operations (the total
of net income, depreciation, amor¬
tization and depletion)
of $27,740,522 in 1957, or $8.60 a share.
The full-year 1957 cash throw-off
from depletion alone was $13,959,262 or $4.35 a share, which was
used to reduce long-term debt and
to help finance the new kraft
pulp
erated from

jected

harvesting program of
Georgia-Pacific, the cash flow in
1958 and subsequent years should

ratio

plotted

are

chart

the

aggregate

amounts
of
Production
for
all
American

yearly
Value

output

manufacturing industry as a unit,
together with the aggregate year¬
ly input of Wages, both amounts
as
reported by the official U. S.
Census and Survey of Manufac¬
tures.

;

•"

The

ratio

Production

output to Wages input is

velopment

measure

Value

de¬

our

30%-50% increase in home

construction

level.

1957

the

over

eco¬

seeking

at¬

vehicle, the shares
Georgia-Pacific, currently sell¬
ing at 16 times estimated 1958
earnings and at about five times
indicated cash flow, are favored
for their better-than-average longterm

cial records

available.5 4 (Since

are

development of this

our

of economic

productivity,

determined

it for

measure

we have
different

many

firms in this and other countries;
the figures for individual opera¬
tions

differ,

from the
national averages, but this is a
highly significant figure in any
business.)
course,

stant percentage share of approxi¬
mately 61%. (The chart shows the
precise figures.)

Torrente

now

Y. — Frank
conducting his

investment business from of¬

own

fices at 2337 East 23rd Street.

formerly President
rente-Giglio Co., Inc.

was

Tor-

Forms Advance In v. Co.
RUTHERFORD, N. J.—Sheldon
N. Epstein is engaging in a se¬
curities

business

name

of Advance

from

offices

Mr.

Epstein

was

firm

Investment

Co.

Feronia

Way.

formerly

the

under

with

Thomson and McKinnon.

Columbine Adds to Staff

The fact that industry's relative

equal

surpass

1957.

With

ma¬

Production

added

Value

good one for
in

sales

Georgia-Pacific,

and profits, despite
unsatisfactory market
conditions and depressed prices in

generally

Securities

Corp.,

621

17th Street.

Josephthal

Richard A. Levine and Richard
A.

Fine

have

become

associated

with Josephthal & Co., 120 Broad¬
way, New York

the
as

New

York

City, members -of
Stock Exchange,

registered representatives.

thus

far

that

seen

the

conven¬

of that term

sense

are non¬

existent

for all practicable pur¬
Recent experience shows no
increase in profits traceable to re¬
ductions in payroll; there have
been no reductions, but instead
poses.

there

have

proved
hour.

been

increases

productivity

per

man-

It has reduced the number

of man-minutes

man-hours per

unit of product.

This is labor timesaving as distinguished from
"labor
savings"
in
terms
of
-

money.

What becomes of the
benefits

economic

labor-time

American
industry as a whole.
Although an individual firm's own
figures in this respect will differ
national

the

from

(Parenthetically,
I
may
add
that this chart graphically shows
what

has

known

come

the

"Rucker

Production Principle."

the

this

two

near

percentage

Production

Value

averages;

two

constancy
shares of

chance.

would

result.

such

will
one

com¬

result
in one

successive

Census

result
of
random
chance, the probabilities are al¬
most nil, about one in (100)19. In
as

and

yet

unpub¬

lished

expected.
that

"labor"

have

our

also

theoretical

estab¬
divi¬

and

the

"management
margin" is matched quite closely

by the actual operating experience
of American, Canadian and Brit¬
3 See
4 See

5 See

reductions

becomes

pre-tax

appar¬

"labor-savings?"
EXHIBIT

Labor

Hours

per

Unit of. Output
Hourly

Earnings

Wage

Unit

Per

All U.

and

Labor Hours

Unit

per
Year

Labor

Costs

Output

Manufactures

(1947-49

Hourly

100)

Labor Cost

Wages .==' per Unit

<b>

(c)

100.0

94.9

110.0

104.4

(a)

1947-49

1951

94.3

121.3

1952

68.4

128.8

113.9

1953

83.8

130.5

117.1

1954

83.0

137.6

114.2

1955*

80.3

143.3

115.1

1959°

78.0

150.5

117.4

114.4

SOURCES:
Cel.

puted.

Labor

(a)

by dividing

Hours
an

from

per

Unit

com¬

Index of Man-Hours
data of the U. S.

worked

(derived

Census

and

Survey

Federal

Reserve

Bank

Production.

-v

the

Factory
Col.

Board

Hourly

Average

(b)

Manufactures)
Index

Wages

by
of

com¬

puted by dividing Production Worker Pay¬
rolls
by hours worked.
Both figures as

reported

the U.

Census

and Survey

Manufactures.

Col.
is

(c)

product

Labor

Cost

Columns

per

(a)

Unit of Output
and

(b).

-Preliminary.

recent

lished

savings in

added

What

Perspective

The

For that combination to

in .19

appear

years

ent

„

combinations

probability that one
bination, say 39-61%
in any single year is
hundred.

appear

profit?

those

payroll

random

different

100

1950

eco¬

scarcely the
With
100% points of Production Value
in any year, random chance would
make it equally as likely that any

result

that

in direct pro¬

retain

form

This prin¬

increases

remarkable

the

widely

nomic-production and economicproductivity. I may also add that
of

unable

What Becomes of "Labor-

Savings?"
The

explanation of this paradox
is simple in fact but the fact it¬
self is not easily established be¬
cause
few firms have any price
index of their own products to
compare with the trend of their
wage-rates.
Because of that lack, most of us

sion of Production Value between

Two With

have

"labor-savings"
tional

the

"Pay is proportionate
productivity."5

way

economic

research, we have estab¬
DENVER, Colo. — Bernard S. lished by a priori reasoning that
Donovan,
Gilbert
F.
Hardurck, this near
constant
sharing
is
John E. Parkinson, Erwin E. Pot¬ within
plus or minus 1.32% of the
ter and Keneth C. Schneider have
sharing that theoretically may be
become connected with Columbine

this dis¬

proceed with

find that its experience is essen¬
cost, despite the huge in¬
crease
in capital investment, has tially the same in principle. How,
shown no change, indicates that then, can we explain the seeming
there have
been no "labor-sav¬ paradox of making labor-savings
ings" as such are normally meant. per unit of product and yet being

(Special to The Financial Chronicle)

But

cussion:

wage

portion

Opens Own Office

appears

private, competitive industry.)

terms

management

BROOKLYN,

saving?
First, of course, the effect of less
labor-cost, Ameri¬ labor-time per unit of product is
can industry as a unit has consis¬
to prevent the labor-cost per unit
tently paid to "labor" an average from
rising as fast
as
hourlyof approximately 39% of Produc¬ wages rise. Exhibit 3, columns (b)
tion Value, retaining as "manage¬ and (c) show that unit labor-costs
ment margin" for all other costs have
risen
only about 40%
as
and profits the equally near-con¬ much
as
hourly wage-rates for
;;In

ciple is simply that both labor and

appreciation possibilities.

to be the basic incentive structure

tractive growth

Principle,"

Exhibit

that
The

nomic
productivity of labor, as labor-cost per unit of output, and
distinguished from the more con¬ there has been no change in the
ventional
technological - produc¬ share of Production Value re¬
tivity measure or phyiscal-units of quired for wages.4
output per man-hour.
Average
Nonetheless, we cannot over¬
Economic-productivity of manu¬ look the clear fact that in Ameri¬
facturing
industry
has
been
a
can
industry as a whole, and in
near-constant of $2.54 of Produc¬ most individual
firms, capital in¬
tion
Value
output per $1.00 of vestment in improved equipment
Wages input for as long as offi¬ and facilities has substantially im¬

same

For those investors

Production

illustrated
on

growth. The anticipated
Management has gained nothing
in population should create
at the expense of "labor"; nor has.
unprecedented
demand
for labor
gained at the expense of
housing, particularly in the 1960's
management. The two parties con¬
when a new building boom could
tinue, as always, to share the

and

paper mill mentioned earlier
in this report.' Based on the pro¬

which

rise

mean a

ish industry, and probably by
of
Germany and Sweden.
"Share

Labor's Share of Production
Exhibit

measured

both

liminary award

full-scale

attainment

the

a favor¬
results is

in'

around $40 to
$50 per thousand feet, despite
competitive pricing at the fab¬

combined.

Tongass National Forest in South¬

Alaska, for which

1958

quarter following the 2-for-l split

held

tripled the company's timber jor capital expenditures now com¬
reserves to a total of over 12 bil¬
pleted, it is anticipated that a
lion feet, all
growing on lands large proportion of cash flow will
owned by the corporation. In ad¬ be
applied to the reduction of
dition to the 12 billion foot timber long-term debt. As a
result, debt
ownership, Georgia-Pacific is con¬ is expected to be retired consid¬
tinuing to study the possibilities erably ahead of schedule.
cf utilizing 7.5 billion feet in the
The year 1957 can be viewed

eastern

having

influence

probably accounts for
why Douglas fir prices

reason

than

•

Another factor

able

the

have

ognized that there are no acute the
company's debt structure
shortages of timber at present, the would
appear heavy on the sur¬
availability of large timber stands
face, such is not the case when
Is

ing housing sales and starts.

factor alone

past.

with

Administra¬

Veterans

dividends have been declared each

ceedingly strong in recent months.
Since
last
May,
prices
have
high rate of growth. Following
climbed from a low of $64 a thou¬
the 1957 harvest, Georgia-Pacific's
sand square feet for the quartertimber reserves still remained at
inch-thick key grade, to the pres¬
12 billion feet. Acreage reforested
ent $80 level.
The $80 figure is
by hand planting of seedling trees
the highest since June, 1956, and
and by aerial seeding, in addition
there still is a lot of agitation for
to natural
reforestation, exceeded and $85 price.
the amount of acreage
logged.
Georgia-Pacific is in a strong
This is a part of the sustainedcash and working capital position
yield program of land manage¬
and can 'cope with normal mod¬
ment which is designed to
keep ernization and expansion
projects
the
conditions

ments

This

come

the

emergency

manufacturing

all

for

perience

shares outstanding during 1956.

and 25% other

capital gain.

feet of

Manufacturing Industry

average

housing act became a
law last April, many builders say
this, plus the subsequent adminis¬
trative move ending down pay¬

one

nation's largest producers.

For

a per-common-

were

The 12 billion board
old-growth timber owned
About 35% of 1957 sales volume by Georgia-Pacific cost an aver¬
was
accounted
for
by plywood age of $10 per thousand feet, with¬
out assigning any value to either
products, 30% by lumber other
than redwood, 10% by redwood, the land or the young growth,
production and is considered

of the

New Measmes of Piodactivity

in¬

after taxes, were $8,531,727, an

Bibliography
Bibliography
Bibliography.

not

fully aware of exactly
much the "lag" or short-fall
prices, relative to wage-rates,
affects our income per unit. Most
product prices have risen, or tend
to rise, at the same time as wageare

how
of

4 See

Bibliography.

Number 5788

Volume 188

The Commercial and Financial Chronicle

(1693)
■:

increases

rate

this

much

not

rising

thing as prices
wage-rates.

same

the
as

All U.

Under the stress of

goods

In the never-ending domes¬

40%.

and

international competition

markets, few firms have
possible to raise prices at
percentage rate as their
hourly wage rates. What happens

the extent that
wage-rates have exceeded the im¬
provement in technological pro¬
ductivity per man-hour, which in
turn

the

measures

costs per unit of
Exhibit 5 is

rise

in labor-

product.
illustrative

114.3

114.4

121.3

112.3

(0)

128.8

113.9

1953

112.1

117.1

136.5

112.9

114.2

137.6

1955

113.6

115.1

143.3

1956

117.9

117:4

150.5

SOURCES:

Col.

B.L.S.

(a)
used

from

the
and

business

Prices

Exhibit

B.L.S.

fig¬
These

the same

are

plotting

Manufactures,

Prices

piled
sale

"All

for

only"

"Whole¬

Indexes

com¬

published by the Office of
U. S. Dept. of Com¬

Economics,

merce.

Col.

Unit

(b)

Labor

Costs

are

the

same

figures tabulated in Exhibit 3. These are
computed by dividing an index of Produc¬
tion
Worker
Payrolls
(computed
from
data of
the U. S. Census and Survey of
Manufactures)
by
the
Federal
Reserve
Bank

Beard

Index

Factory

worked.

by the

U. S.

Both

Census

figures

parison most useful to active man¬
agement. The data here, for con¬
venience
and
familiarity,
are
those

of "all

<a) we have the offi¬
Index of manufac¬

column

cial

tured

industry" combined.

goods prices since 1947-49.
(b) we have the index

and Survey of Manu¬

This is the explanation of what

unit-labor

costs

shown in Exhibit 3.
are

the

almost

the

are

Both indexes

indicating

same,

prices follow closely the trend
unit labor-costs.

previously

Both indexes

Similar

data

for

individual

firms, with rare and only tempos
rary exceptions,
show the same
fact. Private, competitive business
prices

its

products

the

basis

labor

price increases

great

the in¬

in hourly wage-rates.

petitive

pricing

based

unit labor-costs may be expressed

mathematically
in
what
some
kindly critic may term as an eco¬
nomic "law of competition," thus:
Unit

labor

and

costs

hence

(a)

in di¬

product prices change
rect

proportion To the change in
hourly wage-rates, and (b) in in¬
verse proportion to the change in
technological
productivity
p e r
man-hour.
If

of its unit labor-costs.

wage-rates

and

productivity

identical

like it or not, we
competitive prices

meet

The

ings from added capital invest¬
ment, and thus upon the continued
prosperity of private enterprise.
Let me emphasize that:

tendency.

Effects

This

fast

the

reason

why indus¬

prices

rise

not

wage-rates; instead they
steadily to fall relative to

wage-rates.

Exhibit 6 shows this

tendency for American manufacH If
no

this

way

were

not

whereby
could

output

there would be
larger volume of

so,

the

marketed.

strict

the growth of private, competitive
enterprise faster than population growth
depends upon prices that are falling rela¬
tive to

wages,

purchasing

and thereby expanding the
of wage and salary in¬

power

brief, an increase in the per
capita purchasing power depends upon an
increase
in
productivity per man-hour,
i.e., upon labor time-saving per unit of
product, and upon competition between
comes.

Eroducers which assures that the direct
enefit
the
accrues

As
one

can

have
learn

pointed
whether

customer.

out

elsewhere
not

(6)

nation
is improving its per capital scale of living
simply by comparing its wage-rate index
with its price index.
Unless prices are
falling relative to wages, the nation it
or

any

almost certain to be "under-privileged" or
"socialistic" or both.

ket

column

all

(a)

of the

competition" do much to

vide

basic

expansion
One

reasons

of
the

for

capital

pro¬

same

continued

source.

Production

The

Value

ultimate

effects, of
course, is to promote an increase
in the buying power of wages and
thereby to raise the per capita
standard of living of the popula¬

The

tion.
Indeed, without thus ex¬
panding the buying power of our
people, we would have no means

expanding total of "man¬
margin" shown here is

agement
an

end-result

vestment

that

new

effects

in¬

capital

labor-timi

marketing an increasing output
of goods, nor any economic means savings per unit, and hence makes
of meeting the insistent demand possible a steady decline in prices
relative to wages. ? In turn that
of people for more of "the good
one fact assures higher
purchasing
things of life."
The fact that, despite increasing power and thereby the enlarged
volume of marketable output and
populations, the private, competi¬
of

tive enterprise nations have raised
the per capita supply of goods,

through the mechanism of the
market, is probably its crowning

reward

tensely

there

another

practical

and

business

IVages, Ityl/f

and
for

owners"

making

investment; it .simply

achievement.
But

"management margin."

agement

in¬

different

way

Continued

aspect

EXHIBIT 4

Date

600.0

and L954

Wages

1947-1949, as a base of 100, to an
Index of 184.6 in 1956.
:

(>00.0

difference
and

is
"Management Margin," as shown
in column (c).
You will see in
column (d) that this rose from

investment.

800.0

and

(b) are the total amounts
hourly worker wages from the

700.0

re¬

Census

Survey of Manufactures. In

effects of this "law

900.0

of Manufactures for 1949-1953,1955,and 1956'

total

the

are

Manufacturing

ported by the

Competitive

700.0

1919

marketable

of Production Value for

amounts

xoo.o

U. S. Survey

its

manage¬

making potential of manufactur¬
ing enterprise. This may be seen
readily in Exhibit 7.

900.0

Source: U. S. Census of Manufactures for 1914-1947

and

the

and

demand

1000

1914

brings

process

owners

physical output of industry.
It
also expands the total "manage¬
ment margin" after paying labor
costs and thus enlarges the profit-

The Rucker Share Of Production Principle
Annual Production Fa lues and Annual

ment by increasing the total mar¬

column
of

product

same

rewards

Pricing
Two

customers.

trial

#■■■'

■

that bears directly on your earn¬

to hold our customers and to win
new

sense,

This constant tendency of com¬

well below the trend of hourly

wage-rates shown in column (c).

time-savings;
they are utilized to meet competi¬
tion by avoiding unit - cost and
crease

tend

becomes

In column

Whether
have

reported

factures.

turing industry as a whole. Our
studies of Canadian, English and
German industry reveal this same

Competitive
manufacturing industry passes its
provement in technological pro¬ "labor-savings" on to its custom¬
ductivity per man-hour.
ers in the form of prices
relatively
lower than they would be or could
Most
businesses everywhere
be in the absence of higher pro¬
tend, consciously or unconsciously
to obey this "law" in their en¬ ductivity. For most businesses, the
deavor to preserve their share of relative price fall is the same as
the available market, and if possi¬ the degree of its "labor-saving."
Once this fact is clearly set out
ble, to enlarge the market and
in the form shown here, but with
their share of it. In so
doing, we
the appropriate figures for the
in management tend to
pass along
to our customers virtually all of individual firm, management's de¬
cisions respecting new capital in¬
our
gains in labor-time savings.
vestment
may
be
greatly
im¬
And
this
is
what
becomes
of
proved.
"labor-savings."ff

Production.

Col. (o) Average Hourly Wages computed
by dividing Production Worker Payrolls by
hours

com¬

110.0

1954

ures

only

100.0

104.4

1952

are

rise

(b)
100.0

103.6

1951

the

prices only as much as the rise in
our unit labor-costs.
Prices tend

Wage Kates

(a)

1950

found it

in most instances is that we raise

100)

100.0

Year

1947-49

for larger
same

Hourly

Labor Costs

B.L.S.

competition,

manufactured

(1947-49

Unit

Prices

prices, on the whole, have risen
only about 40% as much as hour¬
ly wage rates. In some industries,
the price rise is relatively more
and in others even less than this

Manufactures

both rising but at different
rates, then we may say that unit
labor-costs arid prices rise in di¬
rect proportion to wage-rates and
in inverse proportion to the im¬

are

Prices Reflect Unit Labor Costs

American

tic

EXHIBIT 5

soon

occur,

But

thereafter.

•

Man¬

have

new

their

capital

comes about

from
on

that

page

The Commercial and Financial Chronicle

(1694)

Continued from page

EXHIBIT 7

New Measures of Productivity

What

limits

the

are

new

investment in manufac¬
The research which we

capital
turing?

thus

done

have

Capital Investment

far

in this

area

Paid

Billions
of Si

$30.74

$47.46

34.60

56.11

118.2

1951

104.81'

40.66

64.15

135.2

1952

109.35

43.77

65.58

138.2

separate and distinct from
capital expansion program.
The earnings - to - invested - capital
ratio intermixes the two consid¬
erations.
Our method separates
them and shows each of them in
trol,

the

provides a useful, if empirical,
rule of guidance: the average rate
of new investment cannot greatly
their proper perspective.
exceed the average rate of in¬
In other words, the economiccrease in Production Value added
to raw materials.
For American productivity of capital investment

manufacturing

as a

increased be¬

fixed capital assets
tween
same

whole, meas¬

constant value,

ured in dollars of

1914-1947, inclusive, at the
rate as the physical volume

of factory

From the

standpoint of protect¬

ing profits from excessive depre¬
ciation charges, we find that the

performance is achieved by
those firms who keep the trend of
best

depreciation costs in the same
proportion to the trend of Produc¬
tion Values, both measured in cur¬
rent dollars.

Corporate directors and inves¬
tors customarily follow the trend
of net earnings on total invested

This is also

capital.

active

for

managers

capital investment is sufficiently
productive.
In our method we
obtain this information by going
back to the other end of the scale,
that
is, to the productivity of
fixed capital which is Production
Value output per dollar of capitalcost input. This discloses whether
or not the added fixed capital-cost
or
depreciation is generating a
proportionate amount of added
Production Value or original in¬
come in the first place.
If it is, then proper control of
the

added

Exhibit 8 shows the
of

results

studies.

On the left, you

serve

one

our

per

This firm is large and is extreme¬

managed.
Its earnings
exceptionally
well
maintained
for
years.
On
the
well

been

have

right, we see an opposite condi¬
tion, a decline in the trend of eco¬
nomic
productivity of invested
capital. I scarcely need to add that
this
was
accompanied by a de¬
-

clining trend of earnings—capital
investment
was
promoted at a
rate in excess of the economic op¬

Production Value will

of
the
business
as
by its realized Produc¬
tion Value output.
measured

the ratio

We may add, of course,

44.59

69.02

145.4

131.60

49.23

82.37

173.2

1S56§

139.68

52.06

87.62

184.6

sources:

Col.

Va 1 ue is the current
manufacture
for

Production

(*)

added

value

dollar

"All U. S. Manufacturing,

the

changes.

inventory

Wages

(t)

5AMERICAN

1956.

V-'"

■

Col.

ASSOCIATION,
PROCEEDINGS OF THE; Pay Propor¬
tionate
to
Productivity, by A. W.
Rucker, June 1934.

;

through

and Survey of Manufactures

Census

6 THE

difference

trial

376

often do extend it, to the

well

in¬

that it

nomic

measures,

money measures,

lies

These

East¬

1955.

for

Management
pp.

organization
Keith

Control

by*

68-80, Vrl. 33, No. 5

MANAGEMENT

AND

Plantvide Incen¬
tive Flat an
Top
an
Individual Incentive by J. H. Pohlman, Pres., Pohl-,
man
Foundry, Inc., pub. by McGrawHill Co., January
1955..
A
of

market value

stocks

ducted.

Conclusion

for

In this paper I have endeavored

to describe the results of

economic research.

practical

As I think you

will not be

The

approach

will

new

rising

Joins Marvin Yerke

tions

living
The

capita scale of
growing population.

interests

and

consumers

the private

enterprise system

mutual:

increasing

profits

and

rising

are

industrial

capita

per

TRENDS

THE

FIXED

nicipals" range
ket

lon, Ralph R. McCoy and William
F. McVety have become affiliated
with Marvin C.
Yerke & Asso¬

value

to 10%. of mar¬
new
rules.

under

Increases

are

the

based

In the

and

become

than

/,/

'/V

will

two

Under the
deductions from
U.

maturities

from

one

to 3% for issues with

years,

ECONOMIC-PRODUCTIVITY
CAPITAL

—

two

trade

firms

date."

Rule

325

erning

the

capital

Exchange gov¬

Bibliography.
Bibliography.
See Bibliography.

requirements

member firms states in

part:

"(a) No member or member or¬
ganization
doing ;any
business
with

others

member

than

members

organizations

doing

general business with the public,
except a member or member or¬
ganization subject to supervision

by State or Federal banking au¬
thorities, shall permit, Hn the or¬
dinary course of business as a
broker, his or its aggregate in¬

INCREASES

the

1% for is¬

change rules, the Board empha¬
Ala—Euretta sized a requirement of long stand¬
a securities ing: that margin must be obtained
business from offices at 442 South when a customer buys an issued
"exempted" security in a cash
Union Street.
• * '
account and delivery or payment
is not made promptly - after the
•]•:vinhit s

•AH U. S. Monvfoctvres

(1947-49

new

Govern¬

conducting

PERSPECTIVE of WAGE-RATE INCREASES
PRICE

MONTGOMERY,

F. Adair is

EXHIBIT 6

with

less

year.

value

with

sues

de¬

7.. maturities of more than five years.
In another amendment to Ex¬

6 See

maturities

ments will range from

connected with Atlas Se¬

Opens Inv. Office

one

regulations,

David H. Wagner have

' V;

there

for

market

used in

was

firm's capital position.

before,

ductions

curities, Inc., 6505 Wilshire Blvd.
'.

•

Formerly the full market value
figuring

ma¬

case

tions will be slightly higher.
of U. S. Governments

well

the

on,

of
municipals," the deduc¬

"revenue

•

firm

against

turity of the issue.

ciates, Inc., 40 West Broad Street;

7 See

Bibliography,

made

"general obligation mu¬

It is the establishment of
Our
method
serves
to
show new and
revealing measures of
management whether or not the economic-productivity of capital

3 See

many.

economic-productivity of added
capital investment is adequate to

;.r;

of "municipals/' Deduc¬

COLUMBUS, Ohio—Hobart Dil¬

in satisfying the

per

non-con¬

tions

eco¬

hopes and desires of people in a
nation for the better life; in brief,

for

bonds range

The Board increased the deduc¬

(Special to Tut Financial Chronicie)

of the

measure

Deductions

30%.'

from capital investment,
LOS ANGELES, Calif.—Bernard
and to appreciate more clearly the
J. Funk, John G. Gasteiger, Ben¬
processes by which that favorable
jamin Jesilow, Richard M. Max¬
outcome may be achieved. Profits
economic

In the

vertible corporate

profits

attained

normally discounted by
case of certain high
grade preferred1 stocks, 20% of
the market value is usually de¬

(Special to The Financial Chronicle)

the

of securities owned

by the firm is reduced by vary¬
ing percentages.
He noted that
the
market
value
of*
common

With Atlas Securities

success

■"-/

computing a firm's net cap¬
ital, Mr. Funston pointed out, the

holdings

to aid management to make more

are

Exchange,
President,
an¬

the

last week.

REVIEW."' 30%.

intended

are

Exchange has re¬

Funston,

nounced

measures

new

Board of Governors of the

The

New York Stock

the

productivity
integrates into a
single, easily
understood,
and
extremely
in¬
formative figure all of the diverse
and complicated technological and
inflationary changes of our times;
economic

August

BUSINESS

MAINTENANCE,

I be¬
substitutes eco¬
that is, realistic
for physical-unit

value

Its

measures.

fact that

the

pub. by Controllers Insti-

Rucker,

8 FACTORY

Its central importance lies,

before

September-October 1955.

other personnel.8

lieve,

Yrrk,

"Clocks"

incentives

390,

New

7 HARVARD

be applied to executive

may

and

ture,

productivity of other
functions, including that of execu¬
tive management. This approach
centives

Address

Conference

W. Rucker, pp.
373-376 and 390, pub. by
Controllers
Institute, New
York, August 1955-

and of laborIt can be extended,

economic

Future.

ern

(S5) Preliminary figures.

and

CONTROLLER, Productivity: Its
Its Measurement, Its Indus--

Meaning,

"Management Margin" is tha
between Columns (*) and <t)

(t)

PHARMACEUTICAL

MANUFACTURERS

reported by the U. S.

in comput¬

reported

S Census and Survey of Manu¬
through 1950 and adjusted for

factures

Col.

only";

NYSE member firms

Progress in Productivity and Pay, All vised its treatment, effective Dec.
U. S. Manufacturing Combined (A Re-;
1, of local, state and national gov¬
search
Report), pub. by
The
Eddyernment securities when comput¬
Rucker-Nickels Co., Cambridge, Mass.,
1952.
the net capital of a member
/,
*■< ing

nomic-productivity

higher net earnings from
will readily appreciate, the ap¬
capital invested. If it is not,
proach described is one that can
then the net earnings ratio is
be applied, and which we have
almost certain to stand still or to
long applied, to individual firms.
decline
cause

157.1

113.CI

1955$

how much of
the added original income is con¬
verted into net profit. This ratio
shows a rise when: (a) capital
investment is not over-done, lead¬
ing to excessive depreciation cost;
and (b) internal management of
controllable expense is effective.
showing

earnings,

assure

but the

The Re¬
turn to the American System of Produc¬
tivity, by A. W. Rucker, pub. by L. C.
Page Co., Boston, 1937.

and

ing net capital beginning Dec. 1.

TO PLENTY,

of Production Value output to net

the

clearly identified.

74.55

48.98

123.53

1953

ROAD

fujl

from

municipals will be permitted by

bor's

3 LABOR'S

deductions

value of U. S. governments

Business

recent

will ob¬

that the trend of Production

$1.00 of yearly depre¬
ciation costs is almost a constant.
ly

-dUt

1954

near-

useful fig¬ portunities

but it
does not tell them whether added
ure

constant rate.

Value

output 3 4

maintained

Thursday, October 23, 1958

Certain

CONFER¬

BOARD
REPORT,
Studies
in
Policy No. 15, Measuring La¬
Productivity, pp. 5-9,
pub. by
N.I.C.B., New York, February 1946.

100.0

90.71

ot S*

INDUSTRIAL

ENCE

Index

$78.20

1950

Year

the first place. The
fact disclosed is not obscured by
what management did with the
added Production Value. This is
a matter of internal operating con¬

2 NATIONAL

Net Capital Rule for
NYSE Members Revised

CHRONICLE, What Becomes of "Labor
Savings" from New Capital Investment,
by A. W. Rucker, Dec. 20, 1956.

Margin"

Billions

COMMERCIAL AND FINANCIAL

1 THE

ment

Wages

Billions

justify it in

must

100

Manage¬

Average

circles.

enterprise system prevails.

Production

Manufacturing Industry

popularly believed in management

(1947-49

Manufacturing

All

Value

Limits

of
Living-' are
natural
companions wherever the private

Margin"

"Management

For

standard

Production Value; Wages and

100.0)

debtedness
centum

his

exceed
its

2000

Net

per

Capital,

which Net

Capital shall be not less
than $50,000 in the case of a mem¬
ber organization carrying any ac¬

160

for

counts

customers and shall be

than $25,000 in the case
other member or member
organization subject to this rule,
unless a specific temporary
ex7
ception is made by the Exchange
not

any

the

ber
to

less

case

particular

member

mem¬

organization

due

unusual circumstances.

"The

initial

member

least

captial

corporation

120%

quired

net

of the

shall

of
be

net

capital re¬
be .maintained by this

rule."

Perspective showing the diverging trends of Hourly Wages and Manu¬
Wage

With F. S. Smithers

factured Goods Prices. Note that Prices have been
falling relative to
Rates. The extent of this "fall" is almost

exactly the

same as

the decline in

labor-time per unit shown in Exhibit 3. If one
multiplies the
Index for 1956 by the Wage-Rate Index, the result obtained is
the

same

the

Index of Prices.

(78.0

150.5

117.4

whereas the B.L.S* "All Manufactures" Price Index wasf

per

John

labor-time
essentially
Exhibit 3,

are

for "All

Manufactures, only"

Bureau of Labor Statistics

■

been

Co.,

1 Wall Street, New York
members of the New York

Exchange.

Pasternack Partners
Roy A. Pasternack has become

compiled from the

general

Indexes of Wholesale Prices' and

has

Stock

published by the Office of Business Economics, U.S. Dept.'
of Commerce.

McCormack

City,

117.9)

SOURCES: Average Hourly Wage Earnings
computed by dividing Pro¬
duction Worker Payrolls by hours worked. Both
figures as
reported by the U.S. Census and Survey of Manufactures.
Prices

added to the staff of F. S. Smithers

confidential
Company

Company

SOURCES: Eddy-Rucker-Nickels
•
^

Clients.

Dollar
*

figures
-

are

Copynght 19o8 by The Eddy-Rucker-Nickels Company

partner

and

Samuel

^ck^ 1/^92 Ob^uVst^New
York City, members of the American

stock

Exchange.

Volume

188

Number J5788

The Commercial and Financial Chronicle

(1695)

ing "in the middle." Furthermore,
if the Democrats should gain real
control of the House—that is, a

The Outlook for 1959

admit

sufficient proportion of Congres¬
sional seats so that even without

Continued from page 3

advanced today With those given,
in 1929, to encourage the public

the

however, for at least two or pos¬
sibly three years. This prediction;
is based in part on the fact that :
We no longer have any substantial;
pent-up demands such as were,
still present during and immedi-;
ately following the business readjustments of 1949 and 1954."
.

Sees Downtrend Next Spring

expenditures for capital goods
duringifhe coming year. On the
basis of certain statistics, we now

have

over-all

productive

ca¬

help

to demand than has been the

which

at any

time since early 1937. Even

assuming that spending for capital:
goods will stabilize, at around the
current annual level of $3(1 to $31

•

controls
in

ducive

and

turn

higher

will

not

taxes,

con¬

the

"Not Complacent About Stock

Price Level

hillionfthe rate of activity during
.This leads me to the inter-rein April, the first half of 1959 in this field
at 126.By August this measure of. will almost" certainly be at least lated question of the outlook for
the economy was back to: 437, and; 5% to*8% below the levels-of the security prices.^ As I see
it, the
it is probable that we will see a corresponding period last
spring. business:prospects do not justify
further advance to between 140; Recent reports of improved pro¬ any5bigh -degree of complacency
and
142 before the current re¬ ductivity, plus the fact that ma¬ about the level of stock prices at
bound runs: its course.
By next: chine tool-orders are running at the -present time, any more than
spring, however; I think that the: 50 % below year-ago levels and was the case in the early summer
trend of business will again be at less than one-third of the 1956 of
1957, when the Dow-Jones In¬
downward; and whether we will rate, would tend to confirm this dustrial Average climbed back to
merely get back .to around the conclusion.
its 1956 high—thanks largely to
;
lows of last April or decline even
the unwarranted, widespread op¬
14) There are signs that govern¬
farther to say the 120 level, will
ment s p e n d i n g will taper off timism as to the business outlook
depend largely on the willingness
that appeared in the publications
shortly after " the elections. This
of the Administration* to i place
is ip cbntfast with a rush to place; to which I referred above. I think
emphasis on checking inflation
contracts';last spring. "If the Ad¬ there is also a lesson to be learned
rather than on maintaining full
ministration should decide* to can¬ from the ' Situation which devel¬
employment; and also, of course, cel
oped in the summer of 1953—in
some of the overlapping mis¬
on 'i developments
outside of. the sile
reverse.
At that time I wrote an
-projects how under way and
U. S,
this

year was witnessed

■

realize

mine

that

this

forecast

materially different than
predictions appearing in
such " widely advertised periodi¬
the

are

cals

"Fortune" and "U. S, News

World

However,

Report."

the basis of the record I feel war¬
ranted in going against the views

the

economists

who

these

write for

publications, just
the summer of 1957,

advised that

I did
when I

decline of at least

12% to. 15% in the FRB Index of
industrial Production would be
by early 1958, even though

seen

Professor Sumner Schlicter, "For¬

tune,"'

and

most

the widely-

advertised economic groups, were

talking about new highs in activ¬
ity as compared with the 1957
levels, rather than a probable de¬
cline of greater magnitude than
the 10% readjustments witnessed
in 1949 and in 1954.

I will
limit myself to only a few of my
reasons for believing that business
activity is not likely to advance
much
farther
before
turning
»

For the sake of brevity,

downward:

; Provides Eight Bearish Reasons
i

(1)

In the first place, we now
pent-up demands of any
consequence, such
as helped us
develop an upward spiral in ac¬
tivity after the more moderate
have

adjustments
nessed

stead

1949

production
and

1954.

wit¬
(In¬

demands, we
haye an extremely high level of
consumer- debt!)
;
pent-up

negative rather than
well

now

positive

Since Europe and Asia are

supplied with

our

ma¬

chinery and tools, and in view of
the lower labor costs prevailing
in all parts of the world, it is only
a question of time before we lose
part of our own export business
and at the

time find it

same

nec¬

to absorb a progressively
larger proportion of foreign out¬
put. The growing maladjustments
between the prices of raw mate¬
rials and manufactured products
are
also significant adverse fac¬
tors in the prospects for our ex¬
ports. The over-all result could
essary

further

reduction

$4 billion in the net foreign de¬
mand for our goods during the
coming year.
.

(6) The automobile industry is
now one of the relatively bright
spots in our over-all economy but
here again, there is some question
as to whether production during
the first half of 1959 will be

ma¬

terially above that of the cor¬
responding months of this year.
Even a recovery to the levels of
nine months ago would require a
sizable step-up in demand from

the current rate—with due allow¬
for

ance

seasonable

variation.

believe the output of automobiles
in

1959

could be 20%

above this

year's levels, but I also think most
(if not all) of this gain..will'be
witnessed

the latter part of
when the industry is
expected to introduce new "econ¬
omy" cars, and to make major
changes in their standard models.

The

(7)
also

year,

inventory
favorable

picture
than

other¬

wise from the standpoint of next

it was for awhile some six to nine

months ago, for the simple reason
that we have been building homes

However,

at*

faster rate than is

necessary

business
still

well

the

current

inventories

above

the

ratio
sales

of
is

by private reports from builders

for
the past 10 years; and there is
evidence that production will ex¬
ceed consumption, on an over-all
basis, once the FRB Index is

in various

around

to satisfy new demands.

The fact

that many

population centers are
becoming overbuilt is attested to

parts of the country. By
spring, vacancies will prob¬
ably exceed those of a year earlier
by at least 200,000 family units.
I believe this development alone
justifies the expectation of a. de¬
clining tempo of construction ac¬
tivity next year, and without arti¬
ficial easing of credit it would hot
be surprising if residential build¬
ing declined by as much as 15 %
toi20% from this year's levels.

(3) The available evidence does
.

the 140 level

average

—

and par¬

ticularly if there should be a
slowing down in government
spending.
(8) Finally, I am assuming that

for

the

"Commercial

cession." I commented
that this meant

the most

see

the fact

about to

were

widely predicted

re¬

similar¬

the

business readjustment, thanks
partly to the politically-inspired
steps taken early this year to pre¬
vent

the

maladjustments in our
being fully ■ cor¬
rected at this time; The probabil¬
economy

from

shortages of
equities because of the formation
many new investment trusts
(such as Lehman Corporation in
1929); the purchase of equities for

ities

that

the

will

to purchase stocks.

These include

forecasts of potential

first

time

for

many

institu¬

will

are

continue

the

stock market

selective, of

and from a shorter-term
of view, there is a gbod

course;

point

chance that tax selling pressures

again

tional and trust accounts, largely
because of articles written on the

time

result

in. xpany

bar¬

from

stock market itself; and the con¬
viction that the limited extent of
the

last

two

business

recessions

(equivalent to those of 1923 and
1927)
have
"proved"
that
the
Federal

Reserve

Board

the

and

government could and would pre¬

vent

any
future
business
re¬
adjustments from developing into
downward spirals.
V
,

Estimates D-J Low
I

however, little danger of
prolonged decline such as
developed following the specula¬
see,

any

tive spree in the summer of 1929
—when the Dow-Jones Industrial

Average

rose

by 33% in 13 weeks,

compared with only a slightly
smaller advance since the lows

last

gains in selected issues by
the

case

some¬

December —»• just;as Whs
last year. No major shift

a
conservative investment*
policy will be warranted, how?
ever, until either the Federal'Re¬
serve Board again reverses
itself
as it did temporarily in late
195.1; ;
or there is any development which:
would modify the current picture
of major maladjustments in the
fields of supply and effective de¬
mands on a world-wide scales The.
very long-term trend is uhdjOn^tedly toward progressively more
inflation, but this/does not* cancel,
the danger, of occasional declines
in prices of 50% or more* as w^fe
seen during the French
injTatiOn,
following periods when the public
seemed to forget there,
was/ SuCii
a
thing as overdiscounting even
potentially inflationary increases

earnings

(which, in the-last

April—even

though for¬
again showing their
for our gold rather

in the history of our coun¬
and this confirmed the con¬

what

later

proved

within

4% of the lowest prices witnessed
since that time, and a prelude to
an

rise

average

100%

the

quotations of equities during the
next three years.
I'think it should be obvious to
most

people that at the present
time, we are seeing the most
widely advertised business recov¬
ery in our history.
This publicity
is due in part, of course, to polit¬
ical motivations, and also to the
fact that the economists who mis¬

led

ing;

people are

many

from

tak¬
divert

now

opportunity

every

attention

failure

their

of the

readjustments in the
economy which were to develop
late
in
1957 and up
until the
spring months of this year. The
important point is that just as the
stock market fully discounted, and
warn

in many
the

ment

over discounted,

respects

business

1953-1954

readjust¬

shortly after it reached the

headline stage in the early fall of

the probabilities

1953,

are

quite

strong that the stock market has

currently fully discounted, and
probably overdiscounted, the re¬
covery in business activity since
last April.
Sharp Decline In Equities Like
Last Fall
With

the

most

selling at al¬
relationships to
dividends they

equities

earnings
reached

now

same

and

the

1929;
and with stock yields now below
those obtainable on government
bonds

for

the

summer

first

time

since

1929; it is hard to avoid the con¬
clusion that any change in the
current buoyant business psychol¬
ogy could lead to even a sharper
decline in equity prices than was
witnessed in the fall of last year.
To

sure,

been

has

factor

boom.

inflation psychology
major contributing

the

current

tial

campaign is already under way,
and just as was the case in 1930—

"one-way street,"; and that in this
country, there has been at least a
temporary effort to check infla¬
tion immediately after almost all

When President Hoover lost con¬

month.

The

elections next

i960

Presidential

trol of Congress—the two political

parties will probably be fighting
each other more

expectation of any substantial rise

this

inflation

our

since

has

biennial

1936

—

war.

been

elections

ever

excluding only the

intensively from •periods in which

point on, with the public be¬

never

we were

the

realistic

engaged

expect

W, I. Rosenfeld Admits

Jack

that

setback, stocks

may

Forms Hellene Sees.

again meet support at just under
420 for the Dow-Jones
Industrials,
and at worst, the next cyclical

UNION CITY, N. J;.—Thomas J,

Shpolis is conducting a; securities
business from

offices at

121Q

readjustment should not carry this
Bergenline Avenue under the firm
Index to below the 300-350 zonename of Hellene Securities.;. ./ ; $
barring only our country's in¬
volvement in a new, major war.
Amer. Plans
If I

pistributor^

right in

my appraisal of
American Pious;Distributors,
importance we Inc. has been formed
with pffices
should attach to political motiva¬
at 52 Wall Street, New

the

degree

tions

and

propaganda in

York City,

connec¬

tion with the recent rise in both
business
activity and in stock

prices,
the

should

current

see a

trends

change in
sometime

within the next few weeks. Once
the stock market turns downward
we

will

certainly experi¬
ence a very
sharp rise in bond
prices through a reversal in the
recent tendency to switch from
bonds into stocks; and also be¬
the FRB will be in

cause

better

position to take steps designed to
support the Federal Government
in its financing and refunding op¬
erations.

than

were

the

deficit.
an

when

estimated

budget

could result in
in

Joins
David
staff of
1 Wall

current

Mitchell, Hutchins

this

Street, New* Yqrk

do yon

City?

know

THE

sharp

might have
rise if the

Administration and those who
elected to the

FACTS
OF

LIFE

up,
sizable decrease

widely-publicized

are

Congress come
out openly next year in favor of
raising taxes in order to help
bring about a balance between
government spending and tax re¬
ceipts. Quite frankly, I think this
will happen.
>
new

about cancer?
cancer

250,000Amerioana; 75,000if

soon
be
greatly modified,
emphasis switching over to
the fact that something can and
almost certainly will be done to
check inflation — after the elec¬
tions. I think that there is still

will

their Uveeneef.

lessly because they di4**t
know the facta of life about
•cancer.

$QQ,000 Americana

alive today.
•

to their

I believe we are
near
a
point where the propa¬
ganda as to the economic outlook
summary,

claimed the Uyot ft

them lost

cancer

Summary

tat

W# (Bine m

are

•.

• .

once a

cored of

because they went

doctors <n time, Tbor

knew that a health

ance

year

checkup

is the best insur¬

against

cancer.

Make as

with

good chance we will

"W"

rather

than

witness a

"V"-type

j. Ralff has joined the
Mitchell* Hutchinsr & Co.l

drawn

was

Tax exempts

especially

securities business*

The bond market is also

likely to be helped by a reduction
in the emphasis on the possibility
of a Federal deficit of $12 billion
for the current fiscal year,
mod¬
erate reduction in spending, to¬
gether with higher tax receipts
year's

to engage in a

almost

market

However, the record shows

that

gains 'in the

called built-in stabilizers which
should prevent, in the future,
any
decline in the stock market great¬
er
than that witnessed in 1937-

Negri was admitted td
1938, when equity prices fell back partnership in Wm. I. RosenfeW
try,
by approximately 50%, as com¬ & Co., 120 Broadway, New York
clusion that the stock market was
pared with 85% in 1929-1932. My City, members of the American
definitely in a buying zone — at own
studies suggest that it would Stock Exchange, on Oct. 17*
w

cession

the Democrats will make substan¬

not seem to warrant the hone and

article

year's probable rate of industrial
activity, at least in some lines.

I should like to

over

of the reasons being

some

factor.

(2) Secondly, I doubt very much
whether the government will re¬
peat many of its extreme efforts
to bolster activity in the building
industry during 1959, as it did at
the beginning of this current, im¬
portant election
year.
Housing
starts
during 1959 mav be ex¬
pected to decline by at least 10%
from
this
year's level even if
money were kept just as easy as

concern

analysis, are final determinants!' of
Stock values). From a very shqrtFinancial - Chronicle," which ap¬ eigners are
we
would probably increase our
preference
term point of view, this/ would
peared in the Aug. 27, 1953 issue
output of essential military goods
than for our equities—and with seem
to, be a good time' tp, eiw?
of that publication. In that article,
and still reduce govern men
stocks no longer being on the bar¬ phasize the purchase
and reten¬
I started- with the statement that
spending! quite substantially.
gain counter in terms of their tion
of
medium
or
long-tern*
"Business Week" tersely summa¬
demonstrated earning power or
(5) I cannot help but feel that rized the
bonds, with somewhere, .bej^eer*
prevailing view with a
next year, foreign trade will be
yields. We now have many so- 25% and 50% of total funds.
headline: "Everybody expects a re¬
take similar, steps in other fields,

this point,

ities in

attractiveness of equities for longterm holding and the action of the

encouragement
business activity.
;

i'~.

The low point in the FRB Index,

conservative

through their own favorite brand
of legislation—we will almost cer¬
tainly be faced with the threat of

pacity that is higher in relation
case

the

Democrats, they could force

appointment right
checkup

....

now

for S

and make it

habit far life.

AMERICAN CANCER COCIETT

32)

The Commercial and Financial Chronicle

(1696).

Appeals to Savings Institutions

Continued jrom page

Impressive
think

Treasury Financing Problems
And Preservation of the Dollar
next year—the deficit would
significantly reduced.
Recovery Aids Treasury
•

Financing

third

with which we must

question

Treasury

foresee carrying through of a smooth fi¬
nancing operation with due con¬
sideration
to
equity and profit
for the holders of securities. With
bility. Whether this objective will
in fact be achieved, however, de¬ a Federal debt as large as ours
pends on our resolution to main-" is now, the influence of debt man¬
tain a strong fiscal position and agement
operations v penetrates
on
our
success
in conducting a into every area of the economy.
which

amounts

sound debt management program.
■

will

You

the

recall

pressure

which developed last spring for a

that

recognize

We
our

conducting

operations in the atmosphere
a
free money market some¬

tax cut as an aid to times gives rise to special prob¬
The threat to our pres¬ lems. While fluctuations in mar¬
ent fiscal position and therefore ket
prices and yields serve as
to our currency would have been important function in our private
serious if the Administration and enterprise economy, excessive
the Congress had given in to that speculative activity makes no con¬
pressure before it became clear tribution to the breadth, depth or
that massive Government inter¬ resiliency of the market. We must
substantial

Tax

downturn.

the

reform

and

improvement is a constant objec¬
tive. But I hope we have learned
that we cannot afford hasty and
ill-considered tax reduction meas¬
ures
each time there is a tem¬

all

give continued thought to the

which

ways

recurrence

excesses

those which occurred

However,
continue

last

avoid a
such

done

summer.

financing

our

will
free

Thus there will
Federal Reserve

market.

money

can

the

With

notable

clearly not been successful in the
postwar
period in
long-term investors

encouraging

hold on
securities,
much less to expand their portto

Government

their

folios.

time

debt

when

the

Federal

result
of the
postwar
history, a little soul-searching is
called for.
If the Treasury is to
succeed in lengthening the debt
and in financing any sizable por¬
tion
oi'
the
forthcoming deficit
outside of the banks, it must rely
heavily on the longer term inves¬
rising again as
largest deficit in

That

tors.

surance

recovery.

vention was not needed to reverse

debt.

exception of the E and H savings
bonds program, the Treasury has

now

supported by the economy
without
endangering price
sta¬
be

can

national

dis¬

you are all well aware, a
that additional great deal is involved in debt
borrowing in the management in addition to the

With business recovering, there

on it today
challenge than as a

industrial capacity

fact that both

the

and housing have now passed

phase of postwar expansion,
and in the light of the improved
interest
rates
now
available,
boom

dip in our rate of economic

growth.

times

when

includes

life

in¬

companies.

savings in the aggregate over the
decade

last

the

sets

the outlines
Savings of in¬

problem.

dividuals available for investment
in

insurance,

accounts,

savings

pension funds, securities or mort¬

during the past decade ag¬
gregated approximately $168 bil¬

gages

lion.

billion
ance

this

billion, $127
in life insur¬

$168

placed

was

companies and other savings

institutions,
The

funds.

pension

including
other

start

the

savings

the

trom

fact

that

institutions

and the
individuals whom they serve have
a tremendous stake in preventing
by every possible means a further
deterioration in the value of the

Individuals will probably
saving about $20 billion in the
aggregate
during
the
next
12

dollar.
be

On the

months.

basis

our

ex¬

perience during the last 10 years,
should we resign ourselves to ex¬

pecting

practically

that

none

this would go into government se¬

curities?
of

lems

deficit

are

ically,

The

not.

prob¬
value of
a large

preserving the

dollar

the

think

the

face

serious

dividual—and

of the flow of

sober analysis

the

off

can

that

in¬

emphat¬
savings institution—can

even

afford to take less than

of gram — both refunding and
other borrowing — underscores the
authorizations that passed at least portance of doing as large a
one
house of the Congress, re¬ of our financing as possible
by

some

members

est

government securities.

The

problem
of maintaining
enlarging the proportion of

and

the debt held outside of the com¬
mercial

banking system starts, of

course,

with

savings

our

bonds

In contrast with the de¬
clining holdings which I have just

program.
in

noted

certain

other

sectors

$41 billion was

therefore, in a period of 10
has
been
successful
in
capturing only about 2% of the
money flowing directly from in¬
ury,

im¬
part
out¬

years,

side the commercial banking sys¬

dividuals

authorizations totaling more than

tem.

kets.

billion.

cal

1959

year

Lodging

increased

pro¬

Part of this money portion of the Federal debt with

would have been spent in

the

the fis¬

laws

had

the

banking system
the money supply, and

fect

not underestimate

budget

of this

the

ef¬

size

the effect of the
appreciable addition to our public
debt which it requires. This Ad¬

©ur

economy, nor

ministration is resolved to

will

that

power

create

to contain

ple's savings, does not have that
The

problem

all

pressure

and

the

Congress to exercise the necessary
restraint.
We know that the life insurance

companies of America support us
in our fiscal goals. It is reassur¬
ing to know that their companies

funds—whose

increasing reserves
made it possible for them to add
$21 billion to their holdings of
Government securities during the
past 10 years—are currently re¬
ducing their holdings of Govern¬
ment

obligations

instead

recognize that

savings

gressive

increased

means

ag¬

bonds program
competition be¬

the Treasury

and the Na¬

tion's financial institutions

fine job

through

•

must

the

their

reflect

basic

characterized

"Treasury's debt extension efforts
during
the
past
year
on
the
grounds that we should attempt to
sell

only
short-term
securities
during a recession.
We are all

familiar
this

with

bonds

only

when

the monetary

But if

of restraint.
of

for

securities'which
other
the

nonbank

years to maturity, the average
length of the Treasury marketable
debt
would now be only about
32

four

years

five

years.

against the present

This further shorten¬

savings

which

riod

face as we enter a pe¬

not

now

expansion.

debt

par¬

ticularly welcome your thoughts
on the important problem of exd i n g government security
holdings in the longer-term area
as we seek to minimize additional

aggressive

our

are

attractive to

investors

outside

bond area. Some of
financing can be

Within the financial com¬

banks.

There

But

This

vestors.

much

rests

the longer-term in¬

forts

means

further

ef¬

ing
a

possibilities to be

that the
of joint
consultation between

intensive

and

out of

program

and various groups
government which
can be very

underway

helpful.
There is

solution to our

easy

financing problems. The circum¬
stances
which
determine them
have been with us for a
and
us

long time,

they will continue to be with
as far ahead as we can see.

for

fullv

expect

principally

rely

methods
in

with

are many

explored and we believe

through nonfinancial corpo¬
thev build up their tax

this ob¬

munity the importance of

jective is well understood.
It is
urgent, however, that all of us
give careful thought to finding
new
ways of realizing our goals.

done

commercial

the

from

borrowing

ties

squarely

matters.

the

increased

ously

nonbank

reserves.

these

seri¬
problems

ing of the debt would have

this

just

you

how

matter

efforts, however, it is clear that
savings bonds can carry only part
of the load of a program calling
for increased holdings outside of
the commercial banking system.
The rest must be done by selling

rations

outlined

June,

since

1957, in the one-year area instead
of selling over $26 billion of notes
and bonds running from four to

attracted into other outlets.

have

had done

financing

our

now

dividuals'

where this Administration stands

add¬

theory behind
which is that the

should sell -long-term
during boom periods
policy is one

Treasury

all

the

criticism,

Possibilities

New Financing

There has been criticism of the

and

enlightened self-

interest.

the decade.

long-

could

This

contracts.

term

over

concern

validity of their

the Treasury

this liquida¬
$10
billion.

just at the trees that happen to be
in the foreground.
Institutional
response
to Treasury financing

study

where

area

should look at the forest and not

avoiding monetization of the
standing on the sidelines
and merely accepting savings not

period,

amounted

tap larger amounts of

try to

talking
of
what
other
groups
lengthening
maturities
to them. We are also facing might do—but just about you and whenever conditions permit.
continuing cash drain on the what your companies can do.
As vou know, we have no un¬
to place the facts of inflation be¬
Treasury resulting from the re¬
I fully recognize that the life- derwriters in the accepted mean¬
fore
the
American people.
We demption of maturing Series F insurance
companies made tre¬ ing of he phrase. We don't nay
hope that program will be con¬ and G savings bonds.
mendous contributions to the war commissions, as is done in Can¬
tinued and enlarged.
At a time when our financing
effort
through the purchase of ada and many other countries. We
It is reassuring, also, for those
requirements are so large, these Government
securities.
At
the rely entirelv on broad underwrit¬
of us in the Treasury to realize additional difficulties
weigh more termination of the war financing, ing as a public service bv the fi¬
that we can turn to their Eco¬
heavily than they otherwise in fact, 47% of the assets of life nancial community. It is somenomic
Policy
Committee
from would. But the problems of in¬ insurance
companies
were
in thin ** like trying to sell life in¬
time to time for advice and coun¬
creasing ownership in the non- Government obligations. It was surance by making a nublic an¬
sel. (Our meetings have• always bank area are not insurmountable.
natural
and
the
proper
that these nouncement and exne^tiru*
been extremely worthwhile as we We can take satisfaction in the
holdings should decline somewhat buver *n take all the initiative.
face these common problems to¬ fact that individuals and
savings during the postwar period when
Manifestly,
the
Treasury
in
gether. :
.
.
i
institutions together, including in¬ life
insurance
companies
were rtpnnckfjiYtp chculd riot PxnP"i t.O at¬
surance
companies, mutual sav¬ helping to finance the tremendous tract. investment in its i««?nes exTurns to Debt Management
ings banks, savings and loan asso¬ expansion of, American. indii~trv. cent. on the
of
nricProblem
'
ciations, corporate pension fund?, However, today holdings of Gov- ir»cf vrVUch will cnrnmPTvl it-plf to
I should like to turn now from and state and local
pension funds, eminent securities by life insur¬ .fk** c/vnnd" iiid crrv»pr>t of t>»0 in¬
a
consideration
of our revenue account for
$97 billion of our Fed¬ ance companies amount to less vestor.* You 1 are oronerlv
con¬
and expenditure problems to the eral debt of over
than 7% of assets. In view bf the scious of
$275 billion.- *
have done such

their recent educational campaign

directly or
indirectly all savings institutions
and every one of the tens of mil¬
lions of families they serve be¬
cause of the importance to them
of a sound economy based on a
stable dollar. In short, this seems
affects

debt by

10-year

were

debt

failure

success

for

you

institutions

Thus,
the
share
of
individual
savings flowing either directly or
indirectly into U. S. Government
securities during the last decade
is a minus quantity—specifically,
a net liquidation of $9 billion.
If the
public debt had been
declining substantially during
these years, this might not be a
cause
of concern. However,
the
debt was not falling. Excluding
debt held by Government invest¬
ment accounts, it stayed within a
relatively narrow range during

aware

effect.

The

the

down

inflationary

management

in¬
savings.
In a period
when the Treasury's money re¬
quirements are
so
heavy,
this
competition is unavoidable;
we
cannot fulfill our responsibilities

tion

facing the Treasury is not just to
find
the
necessary
funds
but
reduce Federal spending. We can rather to
procure them from the
restore this aspect of fiscal sound¬
right sources.
ness, however, only if we can en¬
Our problem is complicated by
list widespread
popular support the fact that the Government trust
its

within

mar¬

investment

sound

know, the
liqui¬
dating substantial portions of their
Government holdings in order to
buy new corporate and municipal
securities and mortgages. During

Meanwhile,

further.
You
are
that acquisition of
the debt by true savers, or by in¬
stitutions which gather the peo¬
goes

equally

security

policy.

p a n

Debt-Monetization

Avoid

Must

tween

savings

passed, thus adding further to the hence, the purchasing power of
the public.
prospective deficit.
■"• /
>
When money supply
Although the $79 billion ex¬ increases faster than the produc¬
penditure figure for this fiscal tion of goods and services, there
year actually represents a smaller is upward pressure on the price
proportion of our national pro¬ level and the value of the dollar
duction than in 1952, 1953 or 1954,

the

into

$9 Billion Minus Flow

commercial

increases

you serve.

obligations.

criterion

the Treasury's efforts to

part in

strong base.

new

sulted in the avoidance of budget

$5%

with those

increase long-term investor inter¬

position

ship to those whom

course, you will pursue no course
of action that is not consistent

active

monetary

Congress of both parties to

Thursday, October 23, 1958

However, what is sound judg¬
hasn't the time arrived for some ment
with respect to the desirabil¬
reasonable increase rather thak
ity of a particular corporate issue:
decrease in Government security
may not be sound judgment with
holdings?
respect to major government fi¬
In considering this question, we nancing.
Yield is not the only

the
nonbank
market, Series
E
invested directly in securities or
and H bonds are now at an allrestraint may seem to mortgages.
time
high of over $42 billion.
From the point of view of a make our financing job somewhat
Looking first at the $41 billion
Moreover, $16Va
billion of the
sound
fiscal program it is ex¬ more
difficult,
but it
is only of investments in securities and
Series E bonds, or about 40% of
tremely important, of course, that through an independent Federal mortgages, we find that $17 billion
the total outstanding, represents
expenditures be kept under con¬ Reserve that we can expect to of this total went into corporate matured issues which are
being
trol. As a matter of record, total achieve the maximum reliance on- stocks
and
bonds.
Another
$11 held into the extension period.
authorizations for future Federal monetary policy as a powerful billion went into state and local
Last spring we successfully re¬
spending granted by the Congress anti-inflationary instrument. The securities and $12 billion
went sisted
considerable
pressure
to
during the recent session — only Federal Reserve and the Treas¬ into mortgages.
slow down the savings bonds pro¬
How much of it went into U. S.
part of which, of course, affects ury, with
equal determination,
gram
during the recession.
We
fiscal 1959—exceeded Administra¬ are working in harmony toward Government securities? $1 billion
had confidence in the importance
tion requests by $4V2 billion. In the common goal of preservation —$10 billion in E and H savings
of E and H bonds over the longer
addition, vetoes of spending au¬ of the purchasing power of our bonds,- less $9 billion of liquida¬
run.
Thus we are starting our re¬
thorizations by the President, plus currency.
tion of other savings bonds and
doubled efforts this fall with a
Administration opposition and op¬
The size of our financing pro¬
marketable securities. The Treas¬

porary

be concerned;

namely, the management and
tribution of the public debt.

story of success, since a decade
ago these same investors held ap¬
proximately $106 billion of the

of Government finance

area

have to look

is, I

this record

as we

market our securi¬

market. But

free money

debt

to
time-tested

continue

to
on

large

when it's

particularly
it is essential

ours—

growing—

that we broaden our

perspective to make sure that we
are
not passing up any worth¬
while opportunities for improving
the

structure.

debt

Without

sales organization, we

rely heavily on life insur¬
companies and
the other

must
ance

institutions.

savings

You

are

ready equipped and skilled in

job
the

share
for

al¬
the

of handling the savings of
American people, and you
with

the

responsibility

maintenance

the

chasing

the pur¬

of the dollar if our
Government—as well as

power

national

private industry—is to be

soundly

financed.
I

suspect that in the months or

years

battle

ahead,

immediately
maintain

the

sound cur¬

your

fiduciary relation¬

may

rency

prove

over-riding domestic issue.
courage

nation

the
With

resolution we as a
and will win that baftle.

and

can

V-

Volume 188

;

Number 5788

The Commercial and, Financial Chronicle

Inflation is not inevitable—it is
something which we must ac¬
cept with resignation as part of

bility to promote maxirpum ac¬
tivity, the Government also

not

our

way

arid

can

job - is

accepts

responsibility

of life. It is man-made

maintain

find

control f it

methods

man-controlled.
out

how

without

that

Our

best

sound

resorting to
unduly in¬

restrict

that

sure

to the fact that in the

dollar

home

shall be able

ing of our problems and
assistance in solving them.

and

war

Our

they

over

one

two

The

VA
activity.
This
record
shows that when the mortgage is
free

Continued from page 9

others, in
all

the

compete,

of the

can
get its
with all the

money

the

market

evidence

and,

;■

from

have, it

paying a greater
increase in the price of its money

f
■

agencies of government is, so tat,
pretty much alone in this fight. I
don't

believe

that

the

of
Congress

many

functioning housing
of building the houses
that
our
people need,
and of
supplying
the
funds
that
our
people must have if they are to be

think

going
to
have
sober
second
thoughts
about the continued expansion of

able to

buy the homes we provide.
Credit—long-term
credit—ample

welfare
programs. And I
doubt
that many of us feel that, in spite
of renewed talk about1 the need

supply and dependable in flow

—is

for

economy, the Administration
will take a really vigorous stand

against

what

not

increased

need .and

must have if

expenditures.

what

responsibility is

our

properly fulfilled. We

survive

This may properly raise the ques¬
tion of whether, under these cir¬

sheltered

cumstances, the fight

can¬

otherwise,

and our
adequately

How

be won.

can

Win the

I think

people

attitudes

and

our

Fight

actions

the

idea' that

inflation

Company X or Bank Y is
going to let us have all the funds

that

the

table. It won't be inevitable unless

by thought and action
it

spring

had

some

to hope for. And in taking

long

view

also to take

make

last

reason

inevi¬

surance

ought not to swallow whole

interest

Our

is why I say we have to
long view — a view that
must
extend
beyond
the
im¬
mediate question of whether In¬
take

businessmen and citizens. First of

all

otherwise.

That

won.

own

clearly in the protection and
preservation of long-term credit.

But, at
the same time, I think that the
possibilities of winning will de¬
pend a great deal on our own
can

cannot

ahead,

ought

hard look in retro¬

spect.
The

current situation

the

inflationary

situation.

ness

short

present

shortages

and

still

far

have

are

recovery.

have

materials;
lamentably

have

large surplus of available labor,
which
for

certain

number

We have

with

has

also

to the
increasing

put

off

been

as regularly. During each
of this period we have seen
wages rise. They have gone up

year

whether

the

war

was

cold

hot, whether we were in
or in a period of ex¬
pansion,
whether
profits
were
going up or going down, whether
productivity was on the increase
warm or

had in 1956 and 1957.

our¬

almost

shortage of industrial
capacity, and we are not likely
soon, to experience demands for
funds., for. industrialV expansion
such

chosen

future

ahead.

months

find

today has been in the
making during the last 10 years
of cold—and intermittently hot—
war and expanding social services.
The costs have been accumulating
year by year, and the part of the
payment of that cost which we

in the busi¬

pressure

predicament

selves

is concerned, we ought to recog¬
nize that there is no immediate

recession
,

During the past year we have
undoubtedly made a substantial

gain, in productivity. We have
now a fairly stable price level and
the prospect for continued price
at least well into next

stability
year.

has

These

'' •'.'vl''

•

1 not

are

','

•

■

'promise they hold out. They offer
a possibility that we may be able
to

accomplish

and
of

safely

keep
.

orderly recovery
to

move

business

serious

without
a
inflation, if we

heads

our

heights

new

activity

risk

right

the

this

ourselves

exercise

attention

danger

the

labor

spots:

focus

our

later
~

the

citizens

the

can't carry on what

later

expanding
met

only if

sooner

the real
devote
.

source

ourselves

without

country

is, in its

demands
rather

fully
our

than

recognize

dangers and

earnestly

and

unremittingly to their solution.
No

group

greater
.

stake

citizens

the

has

outcome

these issues, than we who carry
the responsibility of operating a

cannot

the welfare state. These problems

will

now

our prob¬
freely moving interest
we take the short

rate, whether
view

long view of our
predicament. There is no other
way than this for coping with the
frequent shifts in market condi¬
tions that
The

us.

certain to

are

attempts that

made

been

find

cannot

confront

another

successfully be done.

has

lending at a
rate, such as

interest

been

carried on by the Vet¬
Administration,
will
not
solve the problem. Indirect gov¬
ernment lending at a submarket
interest rate, as has been tried
this year under the special assist¬

"Program 10" of the Federal

National

Mortgage

Association,-.

will not do it. Because these kinds
of

operations offer

elsewhere,
they > can
meet the need they stimu¬
late, even if all the resources of
Treasury were at their dis¬
posal.
And
because,
therefore,
they must be limited, they must
favor the few as against the many.

Actually these operations make
matters worse for the many that
from

rowers.

new

choice

$12

out of the
year's time
other
bor¬

money

penalizing
What

about

take

have

now

altogether

their

benefits

than might otherwise be the case.

They do this because they add to
the amount of money that the
Treasury has to take out of the

deal

of enthusiasm ;

YA'/A'

for Government bonds.

•'/v..

;

Government.
This

-V

is the time of the

be used to finance the deficit.

It is believed that this

will

the

billion

dollars

money

further, ;

simple

Government

involve

some

to accept, and to act
We must, at least, not allow

ourselves to be deluded
our

to the

repeated diffi¬

make

every ef¬
help those who control
destiny see where the trouble

fort
our

lies.

must

have

faith

that

the end,
own

money

which will

some

measure

four

least, add to the
.

The

sharp upward movement of the stock market appears
to be forecasting many things, among which are improved busi¬
v

ness

conditions

well

the

inflation

fear

and

if we do not fail in our
convictions, the logic of the

inflation

psychology.

It is evident that the monetary authorities are not;
in a small way concerned about the manner in which the action
of the various indices are being interpreted by the public as a !
whole.
Some hold that the improved business conditions and:
the unfortunate budgetary position of the Treasury appears to;
be bringing about a situation that will in time result in a boom and
bust. This, along the flight from the monetary unit, cannot be ■
ignored by the powers that be too long, since it is evident that
they are more concerned with the inflation fear and inflation;
psychology than they are with the condition of the Government J
.

refunding of issues

Treasury of raising
they come due.

new money

Future of the Discount Rate

Because it is well known that the Treasury will have to be;
in the market for a large operation the early part of December*.
and

recognize,

new

three

Inflation Fear Dominant Factor
a

day and night, and I am con¬
tinually
amazed
that
facts
so
simple appear to be so hard to

We must

■

supply.

....

buyers and force its price up still

source

when the demands of business
and credit to move goods and farm

operation

amount of funds available to other

culties.

and agriculture for money
products increases. In addition, the Treasury will have to be in
the market in the very near future to obtain money which will

stricted supply, they diminish the

true

year

and the

upon.

margin requirements from 70% to 90% >
by the monetary authorities is another step to limit the creation. ',
of deposits which adds to the money supply.
The use of bank
credit to carry stocks on margin has not been sizable so
far, •
and the current move by the Federal Reserve Board will further
curtail the funds that could be obtained from the deposit banks
and which could have been used to buy equities.
This minor
credit limiting move by the authorities will leave the money and
credit picture pretty much for loans by business and the Federal

bond market and the cost to the

after all, there is
place else to get it And, when
they do this at. a time of re¬

this should be

The recent increase in

market—for,

All

Margin Increase Another Credit Limiting Step y.4

care

that

the

needs

of in the

form

business

of sufficient

and

agriculture must be taken
credit, it is not believed likely

;

that there will be much change in the current monetary policy of'
"comfortable restraint." However, it should be remembered that'
when margin requirements were raised from 50% to 70%, it;

long thereafter that the Federal Reserve Board upped
discount rate from 1%% to 2%. To be sure, the increase in
discount rate of *4% to 2% was not very much, and a
Central Bank rate is not a high rate, but it did signal the

was

of the easy money

the
the
2%
end

period.

Even

though another rise in the discount rate is not expected
immediately, it would not be out of order to have such a thing
happen as long as the stock market continues to move so sharply
on the upside.

free market will prevail.

"Flight From the Dollar"

•

It is the

Joins Hooker &

Fay

(Special to The Financial Chronicle)

FRANCISCO, Calif.— Ira
Jr. has joined the staff

Gunn

of Hooker &

Fay, 221 Montgomery

Street, members of the New York
and

Pacific

Coast

Stock

Ex¬

changes.

opinion of not a few well informed economists that
the upsurge in the price of equities is going on, because of
the fear of the continued decline in the purchasing power of the
monetary unit.
This flight from the dollar, which is being
expressed in the heavy buying of common stocks,, cannot be,
interpreted as being bullish for fixed income bearing securities.
There

jias been however, a good demand for corporate- and
tax-exempt bonds, but these securities are in a much better
competitive position than are long-term Treasury issues.

Grant Fontaine Adds

Now With Walston Co.

(Special to The Financial Chronicle)

to face

losing

great

bargain not

never

excluded

longer-term Treasury obligations because good a competitive position as are non-

though the eoming Government operation js: Still some,
time off, there is considerable talk about an
intermediate^ and j
long-term issue being part of, the year-end picture. The very r
strong stock market, which appears to be forecasting boom and I
inflation conditions, is not considered to be a favorable atmosphere,

obtainable

are

to be

appear

Even

erans

ance

are

Direct government

submarket

not

far have

does

from

way
offer the best proof we have that

the

SAN

to recognize

the circumstances I
described, the Federal Gov¬

stream

financial effect, a major war and
still be able to afford the un¬

ceasingly

have

billion

in Congress must be made to realize that

Interest Rate

lem but

Frlce to Pay
we

credit

and their representatives
we

influence

here; and the fact that they
do the whole job is no
reason
for abandoning the part
they can do.

and

tivity must be broken. Sooner or

Wanted: A Freely Moving
no answer

market,

rebound

not yet in
Federal securities.
*

There is

far there

they

cannot

have

government extravagence. Sooner
or later the power of labor unions
to force wage increases beyond
real long range gains in produc¬
"

find

means

even

real

two
power

sure

tempering

ernment

is that, under

Government

need

time

solving the problem of the
wage-push. Admittedly it cannot
be solved wholly by monetary ac¬
tions. But monetary actions can

What

Singles Out Labor and

critical

without

for

areas.

Where

situation

vastly

direction. Our problems need not
be here.
Our problems
are
in
other

This

aggravated the prob¬
lem that the country faces.
We
Jhave now come to a time of
reckoning. It is as simple as that.

inflationary

symptoms. We ought not to con¬
fuse them with what they are not,
and we ought to.. recognize the

decline.

the

so.

So far

:
•'

smoothly

market,

these others.

technical

for the intermediate and

without

than do

can

Government

after what is being interpreted'
severely oversold condition, has*
given up most of its gains. The market for Treasury obligations {
is still pretty much of a professional affair in spite of the small 5
amount of investment buying which is evident from time to time.1
as

Governments

By JOHN T. CHDPPENDALE, JE.

and

your

Reporter

years

recessions,
been only minor fluctuations compared to the violent shifts in FHA

both your understand¬

mortgage lending
the past eight

have,

where

area

mortgages have been able to com¬
pete — the area of conventional

help

the

value, of

ingredient of :
growing economy.

and

to count

dividual initiative and freedom of
choice. In accepting the responsi¬

the

essential

(1697)

(Special to The Financial Chronicle)

Two With Baron,

Black

(Special to The Financial Chronicle)

OAKLAND, Calif. — Dennis
George has been added to the
staff of Grant, Fontaine & Co., 360

LOS ANGELES, Calif.—Robert
LOS ANGELES, Calif.—Nathan
control of our fiscal affairs or of
E. Hambly is now with Walston D. Kaufmann and Ralph P. Maripaying the price that control im¬
&
nelli are now with Baron, Black,
Co., Inc., 550 South Spring
poses. The price that we have to Twenty-firsl^Street.
Street. Mr. Hambly was formerly Kolb and Lawrence, Incorporated,
pay is that of higher interest rates
with William R. Staats & Co. and 253 North Canon Drive.
on our mortgages. The price prob¬
Stephenson, Leydecker Add J. Logan & Co.
ably also involves, for a time at
(Special to The Financial Chronicle)
J. B. Hanauer Adds
least, financing fewer houses than
OAKLAND, Calif. —George J.
Now With Wedbush
we should like.
(Special to The Financial Chronicle)
Davis
has
joined the staff of
As we accept these necessities,
(Special to The Financial Chronicle)
BEVERLY HILLS, Cal.—Robert
Stephenson, Leydecker & Co., 1404
however, we have, it seems to me,
LOS ANGELES, Cal.—William
A. Perelman has been added toFranklin Street.
an obligation to do all we can to
B. Paullin is now with Wedbush
the staff of J. B. Hanauer & Co.,
see to it that mortgages are not
& Co.
140 South Beverly Drive.
Three With Le Vesque
unduly penalized and that house¬
(Special to The Financial Chronicle)
building is not unduly restricted
With Powell, Johnson'
With Malibu Inv. Corp.
BEVERLY HILLS, Calif.—Wil¬
even
for a short time. We have
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
liam
H.
Matthews, Hazel M.
an obligation to insist that mort¬
PASADENA, Calif.—Charles a
MALIBU, Cal.—Richard W. Gish
gages have the same privilege of Provencal and Wesley A. Proven¬

competing for the available sup¬
ply of credit as is allowed to other
forms of investment. I point again

cal

have

Russell

become

affiliated

Vesque

and

with

Asso¬

ciates, 321 South Beverly Drive.

now

with

Corporation,
Highway.

Malibu

23656

Investment

Pacific Coast

Arnold

now

connected

Powell, Johnson &
Security Building.

Powell,

with

Inc.*

The Commercial and Financial Chronicle

(1698)

Continued jrom page

indifference

upon

ple.

Liberty and Prosperity

sary
institution, the means to erning power which is analagous
make the social system of coOp- to public government power, the
eration work smoothly,, without power that the government exefbeing disturbed by violer^ acts on ■J cises in- imprisoning a man ^ih
!
-'.v
the part of gangstenSm whether Sirig Sing."
^ -Those expounding this amazing
of domestic or of foreign origin,
'doctrine
consistently [- conclude
Government is not, as some peopie like to say, a necessary evil; that ; lifeHerty- is nowhere to rife
it is not an evil, but fe means, the foUnd. They aSsert that What they
only means available ;to make' •call economic pressures do ridt
peaceful human coexistence pos- essentially differ from' tiie pres¬
sible. But it is the opposite of sures the masters practised wit^i
liberty, it is beating, imprisoning, regard to their slaves. They re¬
hanging. Whatever a government ject What they call private gov¬
does is ultimately5 supported" by ernmental power, but"they do hot
the actions of armed constables, object to restriction of liberty by
If the government operates a hos- public governmental power. They

contempt

even

the dealings of better peoBut he is delighted to enjoy
benefits

the

all

and

the

which

of the innovators

deavors

Thursday, October 23, 1958

...

en-

put at

his disposal. He has no comprehenthat economic power is ultimately communists call freedom. From sion of what in his eyes is merely
this point of view we may also inane hair-splitting. But as soon
vested in the hands of the buying
public of which the employees understand what another distin¬ as these thoughts and theories are
themselves form the immense ma¬ guished Englishman, Mr. J. G. utilized by enterprising businessjority. Their inability to compre¬ Crowther, had in mind when he men for satisfying some of his
hend things as they are is reflect¬ praised inquisition as "beneficial latent wishes, he hurries to aced in such inappropriate meta¬ to science when it protects a ris¬ quire the new products. The comphors as industrial kingdoms and ing class."5 The meaning of all mon man is without doubt the
dukedoms. They are too dull to this is clear. When all people main beneficiary of all the accomsee the difference between a sov¬
meekly bow to the dictator, there plishments of modern science and
'']■'■■■
ereign king or duke who could be will no longer be any dissenters technology.
for
liquidation.
Caligula,
dispossessed only by a more pow¬ left
It is true, a man of average in- Pital.or a school,the funds reerful conqueror and a
and
Robespierre tellectual abilities has no chance qmred are collected by-taxes, Le.,
"choco¬ Torquemada
late king" who forfeits his "king¬ would have agreed with this solu¬ to rise to the rarlk of a captain of
Payments exacted 'from citition.
dom" as soon as the customers
industry. But the sovereignty that zens- /
The socialists have engineered the market assigns to him in eeOprefer to patronize another sup¬
If We take into&account the fact
plier.
a semantic revolution in convert¬
nomic affairs stimulates technolo¬ that, as human nature is, there
can
be
neither
civilization nor
j
This distortion is at the bottom ing the meaning of terms into gists and promoters to convert to
of all socialist plans.
If any of their opposite. In the vocabulary his use all the achievements of peace without the functioning of
the socialist chiefs had tried to of their Newspeak, as George Or¬ scientific research.
Only people a government apparatus of violent
intellectual horizon does action, we may call govemmerit
earn his living by selling hot dogs, well called it, there is a term "the whose
he would have learned something one-party principle."
Now ety- not extend beyond the internal ; the most beneficial huniari instiabout the sovereignty of the cus¬ mologically party is derived from organization of the factory and tution. But the fact rerriains that
tomers.
But they were profes¬ the noun part. A brotherless part who do not realize what makes government is repression arid riot
sional revolutionaries and their is no longer different from its the businessmen run, fail to notice freedom.. Freedom is to be found
'
only in the sphere in which govonly job was to kindle civil war. anonym, the whole; it is identical this fact.
The admirers of the Soviet sys- ernment does not interfere/ LibLenin's ideal was to build a na¬ with it. A brotherless party is not
tion's production effort according a party and the one-party prin¬ tem tell us again and again that erty is always freedom -from the
to the model of the post office, an ciple is in fact a no-party prin¬ freedom is not the supreme good, government.
It is the restriction
outfit that does not depend on the ciple, is the suppression of any It is "not worth having," if it im- of the government's interference,
kind of opposition. Freedom im¬ plies poverty.
consumers because its deficits are
To sacrifice it in It prevails only in the fields in
covered by the compulsory collec¬ plies the right to choose between order to attain wealth for the which the citizens have'the'op-

want to concentrate

all that they

restrictions of liberty

call

hands

the

^attack

government.

the institution

in the
They

private

tion of taxes.

ciety" he said

"The whole of

so¬

assent

and

dissent.

But in New¬

to "become one speak it means the duty to assent
office and one factory."2 He did unconditionally and the strict in¬
not see that the very character terdiction of dissent. This rever¬
of the office and the factory is sal of the traditional connotation
entirely changed when it is alone of all words of the political-term¬
in the world and no longer grants inology is not merely a peculiar¬
to
people
the
opportunity
to ity of the language of the Russian
choose among the products and Communists and their Fascist and
services
of various enterprises. Nazi disciples. A social order that
Because his blindness made it im¬ in
abolishing private
property
possible for him to see the role deprives the consumers of their
the market and the
consumers
autonomy and independence and
play under capitalism, he could thereby subjects every man to the
not see the difference between arbitrary discretion of the central
freedom and slavery. Because in planning hoard could not win the
his Byes the Workers were only support of the masses if it were
workers and not also customers, not to camouflage its main char¬
he believed that they were al¬ acter. The socialists would have
was

portunity to

masses, is in their eyes fully justified.
But for a few unruly in-

choose the:

way

which they want to proceed. 'Civil
rights are the statutes that prethemselves to the ways of regular cisely circumscribe the sphere In
fellows, all people in Russia are which the men conducting the afperfectly happy. We may leave it fairs of state are permitted to reundecided whether this happiness strict the individuals' freedom to
dividualists

who

cannot

adjust

also shared by the

millions of act.
*?■:
died from
The ultimate end that men aim
starvation, by the inmates of the at by establishing government is
forced-labor camps
and by the to make possible the operation of
was

Ukrainian peasants who

Marxian

leaders

who

were

definite system of social coop-

eration under the principle of the
division of labor. If the social sysliving is incomparably higher tern which people want to have is
But

cannot pass over
the fact that the average standard

purged.
of

socialism (communism, planning),
there is no sphere of freedom left,

in the free countries of the West
than

the

East.

communist

property and the laws that, - as
they say, stand "ready to enforce
property rights—that is, to deny
liberty to anyone to act in a way
which violates them."7

;

Soup arid Corporate Control!

generation ago all housewives
prepared soup by • proceeding, in
accordance with the recipes they
had got from their mothers or
from a cook book.
Today many
housewives prefer to buy a

canned

to warm it and to serve if
to. their family.
But, say our
learned doctors, the canning cor¬
poration is in a position to restrict
the housewife's freedom because,
in asking a price for the tin can,
it puts an obstacle to her use^ol
it. People who did, not enjoy the
privilege
of
being tutored
by
these eminent teachers, would say
that
the
canned
product - was
turned out by the cannery and
that the corporation in produc¬
ing it removed the greatest ob¬
stacle to a consumers'getting and
using a can, viz., its non-existeriee.
The mere essence of a product
; cannot
gratify anybody without
its existence. But they are wrong,
say the doctors.
The corporation
dominates the housewife, it de¬
soup,

the price All citizens are in every regard stroys by its excessive concen¬
trated .power her individual free'subject to the orders of. the gov•dom and it is the duty of the gov¬
ready slaves under capitalism and never duped the voters if they prosperity, the Russians made a ernment.
The state is a total
ernment to prevent such a gross
that one did not change their had openly told them that their poor bargain.
They now have state; the regime is totalitarian,
•offence. Corporations, says, under
status by nationalizing all plants ultimate end is to cast them into neither the one nor the other.
The government alone flails and
and

shops.

Socialism

substitutes

For

bondage.

the sovereignty of a dictator or a
committee
of
dictators
for
the

were

sovereignty
of
the
consumers.
Along with the economic sover¬
eignty of the citizens disappears
also their political sovereignty.
To the unique production plan
that annuls any planning on the
part Of the consumers corresponds
ill the constitutional sphere the
one-party principle that deprives
the citizens of any opportunity to
plan the course of public affairs.

exoteric

use

giving

away

liberty

paid for the acquisition of

forces

they
V.

liberty.

the

forced to pay lip service
traditional
appreciation

to
of

everybody to behave in

rear

will

progeny

taken

away by eugenics.

Early Illusion

In the market economy ihfe inlabored dividuals are free to choose the
Why does our housewife buy
under
the
illusion
that in the way in which they want to iritethe canned 'product rather thap.
Freedom and Poverty
early ages of history the individ- grate themselves into the frame of
to
the
methods
of
her
It was different in the esoteric ual was free and that the course social cooperation. As* far a3 the cling
Romantic

IV.

discussions

circles

among

philosophy

Of course, the socialist leaders
Occasionally assure us that dicta¬
torial tyranny Is to last only for
the period of transition from capi¬
talism and representative govern¬
ment to the socialist millenium in

the

great

inner

historical

had

evolution

sphere

de-

market

exchange

only be a deviation from
the perfect state that mankind has
attained in reaching the bliss of
socialism. Under such conditions
would

simply

lunacy

society cannot realize the
illusory concept of the individabsolute
independence,

True,
ual's

Within society every one depends
on
what other people are pre-

tolerate dissent.

mother

^ex-

pared to contribute to his wellLiberty, says the Bolshevist, is being in return for his own contributions
to
their
well-being,
bourgeois prejudice. The com¬

ficiehtly

secure

Miss Joan

to risk criticism,"

Robinson, the eminent

representative of the British

neo-

his

does not have any ideas

own,

class interests of the intellectuals
who make a living as professional

dissenters and

innovators.
Cambridge school, is kind enough
This is certainly the most ar¬
promise us, even "independent
philharmonic societies" will be rogant disdain of the plain citizen
to

allowed to exist.4 Thus the liqui¬
dation of all dissenters is the con¬

dition that will bring Us what the
2

Lenin, Stata and Revolution, Interna*
Publishers, New York, s.d., p. 84.

tional
3

Marx,

Zsr

nrMieehmn

(ed.

by
P. 23).
i

4 Joan

Kritik

doe

eozieddemo-

Programme

Kreibich,

kobinson,

Public

Control

von Gotha,
1875
Reichenberg
1920,

Private Enterprise
(published for the

Association

for Education in Citizenship
the English Universities Press Ltd.,
sud.), pp. 13-14. >
By

ever

devised.

There is

need to

the terms of

exchange;

this point.

is not whether

For the question

mat-

they feel fbout it, they
lack freedom.
The slave is unfree because the master assigns
him his task and determines what
he has to receive if he fulfills*it.
ter how

As regards the

not the common

routinist profits from the freedom

granted to those who eclipse him
in intelligence and will power.
The common man may look with

order to make all

people obey the
orders of the government, wheth-

they-like it

G. Crowther, Social Relations
Science, London 1941, p. 333.

custom. N obody

wives by

jurisdiction ex*,
.
-i-4.■
tends, there is coercion and not:
freedom.

•

Government is

neces-

investing in the eahhery

there are other
equally selfish capitalists who in
industry. v Arid

many hundreds of other corpora¬
tions provide the consumers With

by. serving the corisumers bettfer
they are
served" already.
What he needs is only brains arid

than

cases the man is subject to gov- hard work. "Modern civilization,
erning power. He is not <free, for, nearly all * civilisation," said Ed¬
as Professor Hale says, a .man's win7 Gannan, the last,of the loiig
freedom means "the absence of line of eminent British econ¬
any obstacle to his use of material omists, "is based on the. principle
goods."6 This meansi-Iam- not of; making : things pleasantfor
free because a woman who has those who please the riiarket apd
knitted" a sweater, perhaps as- a unpleasant for those who fail to
birthday present for her husband, do so."9^ All this talk about the
puts an obstacle to my use of it. concentration of economic powfer
I myself am restricting all other is Yain. The bigger a corporation
peoples' freedom because I object is, the more people it serves, the
my

toothbrush.

In
7

doing this, I am, according to this
doctrine, exercising private gov-

not. As far as

the government's

geous for

„„„

5 J.

tween the servile state arid economic freedom by denying that many hundreds of other things.
The- better; a corporation servfes
there is any freedom in the muthe public,
the- more customers
tual exchange of commodities and
it gets, the bigger it - grows.
Go
services on the market. • Every
into
the
home
of
the
average
market exchange is, in the words
American family and you will see
: of a school of pro-socialist lawyers,
for whom the wheels of the ma¬
"a coercion over other people's
chines are turning. [- - '
^
liberty." There is, in their eyes,
In
a
free
country nobody as
no difference worth mentioning
between a man's paying a" tax or prevented from "acquiring riches

social apparatus
repression and coercion,: the.
government, there cannot be any
man
can
himself take advantage
question of freedom. Government
of the liberty to think, to speak
is essentially the negation of liband to write books. The question
erty. It is the recourse to viois whether ©r not the sluggish
lence of the threat of violence in to their using

argue

grandmother? *

acting is more advanta¬
her than the traditional
forced her. Tft,effe
were people—they are called job¬
bers^ promoters, capitalists, spec¬
ulators, stock exchange gamblers
—who had the idea of satisfying, a
latent wish of millions of house¬
way

Society is essentially the mutual
does not write exchange of services. As far as
the individuals have the opporWhich everybody's wants and books, does not hatch heresies and
tunity to choose, they are free; if a fine imposed by a magistrate or
wishes will be fully satisfied.2 does not invent new methods of
they are forced by violence or the'' his buying a newspaper or admisOnce the socialist regime is "suf- production. He just wants to en¬
joy life. He has no use for the threat of violence to surrender to sion to a movie. In each of these
mon man

arid

doubt because she thinks that this

conspiracy.

could

the Ford Founda¬

tion; another of this group, Prtffessor Berle, must be subject :tb
the control of the government.® -•

prived him of his primordial lib- tends, there is spontaneous action
There the initiated did not dis¬ erty.
As Jean Jacques Rousseau oh the part of individuals; Under
semble their intentions concern¬ saw it, nature accorded man free- this system that is called laissez-:
ing liberty. Liberty was in their dom and society enslaved him. In faire and which Ferdinand Lasopinion certainly a good feature fact, primeval man - was at the salle dubbed as the riightwatchin the frame of bourgeois
society mercy of every fellow who was man state, there is freedorii beFreedom is indivisible.
He who
because it provided them with the stronger
and
therefore
could cause there is a field ih'which the
has not the faculty to choose
opportunity to embark upon their snatch away from him the scarce individuals are free to plan for
among various brands of canned
subversive schemes. But once so¬ means of subsistence. There is in themselves.
^
\ *
fOod or soap, is also deprived of
cialism has triumphed, there is no nature nothing to which the name ;" The socialists must -admit that
the power to choose between vari¬
The there cannot be any "freedom urilonger any need for free thought of liberty could be given.
ous political parties and
programs
and autonomous action on the part concept of freedom always refers der a socialist system. But.they try
and to elect the officeholders. He
of individuals. Any further change to social relations between men. to obliterate : the difference beis ho

longer a man; he becomes a
pawn In the hands of the supreme
Social engineer* Even his freedom

the auspices of

ac-

cordance with this uniaue plan.

<
_

6 R?,be.rIt.

h- **aJe»

freedom^ through'

Law, Public Control of Private Govermng
Power, Columbia UniversityPress,' 1952,
pp. 4 ff.
"

Ibidem,

8 A. A;

the

Berle, Jr., Economic Power ahd

Free Society,

Preliminary Discus¬
sion, of the Corporation, The Fund for the
a

Rep*^blic,i New York, 1957.
-

9 Edwin

Cannan, - An Economist's
1926, pp. VI ff.

test, London

Pro¬

Volume 188

does

Number 5788

The Commercial and Financial Chronicle f

(16^9)

depend,

on pleading
employee, butalso as an investor. ;r' Continiied frnrh
the., many,; :the There prevails;,a tendency to
masses.
Economic power is in the face to some extent the once
sharp ; "
*
'
rrfarket economy.in the hands-of difference
between
those -"who '•&

the

snnntr

ef-^P-J

consumers,

for

example, rose from art-issue
price of 100 in November 1957, to

111

last

April. In the corporate5
the $250,000,000 American1

the%cpn^mers^f

7^4^;''rfactors;-,

•

Capitalistic business .is not

severance •

nr....the

once

field,

and?

production

Tel.

tnose who- do not. But, of course,
this trend can only develop where;-"

per-

attained

an"

Foi the Oct

bonds of

1983

rose'from

issue price of 101 Va in October
ago

year

peak

112.

^rt^tictioh.'; It is rather the market economy is not sabohardly need to add that the action
innovation, - daily
retaged by allegedly social policies. -.
of the bond market provided a
pea ted attempts to
improve the ^tie Welfare State with its meth- 1-at ions,
interpretations,
and told
the children
that
it
had
happy Christmas, New Year and
prdvision-ibf" the consumers by °ds Pf dasy ,money, credit expan- with the alleged benevolent guid- brought them
into the world. Easter Season for the members of
new;
better'arid; cheaper prod-s^on. and^ undisguided inflation ance of ;the F.R.B., the S.E.C., the Little Johnny, aged 6, turned to the Wall
Street bond fraternity,
ucts. Any actual state of produc- Continually ..takes bites out of all F.P.C.,.the
N.A.S.D., the S.C.U.S.A., little Mary, aged .5, and said: due to the fact that
rising prices
tion
activities
is merely transi- claims.payable in units of the na- the -N.Y.S.E., and other
regulatory "Shall we tell her or shall we let often give one a false sense of
tory." There prevails incessantly ./fions ^legal
tender.The ;self-v bodies:* The greatest pressure on her remain stupid?"
prosperity. We paid for the
state

ceaseless

styled champions of the common
ipau arcvstill guided by the obso-

the

tendency to supplant what is
aReady^chieyed- byr ^something

that senses the

There is

consumers

b^tter^-^f

us y

to " obtain

maximum

^ba^a policy that favors-^organizations and

spree

results

What is the

comes not from* these alphabetical

tacular

not because we

Reduced

continuous circulation of

beneficial to the

elitesvi d What-/-; ch»acterizes4':th.e

*£3 J

cause of

calls^the captains^
'tkeiF^bi.yty;Ap.x^n^^

not

succeed in

...

adjusting^ dare creditors in^ their capacity

itself daily anew to the best pos-

fs saver?,policy holders andown-^

sible .methods of serving the
cop- ^^of^nds^,;
sumers.v But. the
politicians and>
* • oyil.
other would, - be reformers see

Capitalism'*

only the structure of industry as.
it exists .today., They think .that
$
they themselves are clever enough

Effioipnrv

vaDiiansms mucimov

sC'Ghriti'es. -The subsequent court
actiofi> to

demonstrate

that

i";' equalled one proved conclusively
that competition amongst the 17

;

firms

. ..

was

not

only

intense

simplest

with

market*'

subsequent hangover.
Treasury, from December

terms,
it
savings

1957 to June 195fit, taking advaiitage of the buoyant conditions it
had created, sold several medium
and

to;

snatcjy front business control:-1
plants, as they are today 9
and to manage them by sticking to

bonds

collateral,

fronv $88,000,000

rose

...

a sphere.un

reduced

ui«;C,?«cua

^which the individ-

choose and;

ahd

after reading 77,000; pfmte(l
pages of'documents and briefs; the

in common stocks. It is estimated,
assuming the continuation of pres-

in.Novem¬

approximately $185,The speculators in the

000,000.
last

issue

tremendous

suffered

dispassionately,

not subscribe,

who

is already preparing plahs for
things unheard of before, all they

AIL the spiritual

row

w^ ,!"ate.ri.al

•."

'1.

r*ni

(?11lT

along-tracks--already beaten". There
is

record, of

achieyements
were the

'Western crnhzahon

have in mind is^o-conduct affairs
1

these

ber ,1957 to $1,423,000,000 in June
1958. These loans have now been

°t; the

quick

The

long-term issues.

and substantial premiums on

Government

but

The

issues attracted speculators from
Main Street, California, to, State
Street in Boston. Operating", in
funds have been increas- many cases on the thinnest- Of
ing in size; this year the increase margins,* they heavily over-suhlias accelerated. Evidence of this scribed the long-term bonds is^
^
J
*
- 1***
is shown by the fact that, during sued last June. Loans
by the New
the last few months, three new York Federal Reserve Bank, with'

it does

stock

means that the amount of

competitive forces within

people, ^Tbeir in- the^.investment banking industry,
prebend the essenIri " the heat of a Presidential
???_£. '.pOlitieaT'bampaign ten years or so

mep whonv one
of indqstry4$:

the

being
channeled
into
common
stocks-is greater than the amount
of stock being created. To take
one segment of the market, let me
the mutual fund figures.
irs,-as you all know,1 the

epiisequently^uiiden capi-^; We.dbbtbr§atthe expensevof the want .to. be do-gooders, but be.

talism

for the spec

reason

rise in

r»T

T r*

r\.%\

r\-%r%r\

4-'»

«X'

Xh 4

°f the obviously weak arguments of
re+^witriesses^ ^called bv the-Govern-

s"lti.uf Jh^;°Peration of this idea

ot lWrtyr.;

industrial in-

through August,
ratbef lack of them, after hearing

...1

■-

His grounds for so"

us.

doing
novation,,contrived and. put into >
so conclusive that the Gov?by bureaucrats.-. If one; individualism tand of capitalism, crnmbnt did'not
appeal. I hope
does not want to plunge into stag-: its application-to economic mat^ ■
ybif^ wilL fenort to the Federal aunatioii,,, a, free hand, 'musty be left iers, .danot. need_any apologists br^tlibfitiesdhat'^we are still in fight.

practice

it we continue to

business.

capitalism

•

and

VW1C1 cuhmuci auuus, aiso upon me

vincomparalble efficiency of its pro-

tiOlT;

■

ductive effort.
ill af- mulrPO

It is this
nAcci K1 A-

efficiency

I'am

noV\i + nl

'^.Two conclusions

of possible in-

antt-trust case: First, your financial officers will find the doors

open

any

'iifd

of' the firms in the
^T.

1.U

.^1.

...

the

years,

-iv

•

thb
^mepns

is, on tne

have

itv^of the^

masses

»■reducing real

costs to protect its
profit margins, there is reason to
a
strong demand for

believe that

common

This

stocks should

con-

that yotir com¬

means

should

panies

able

obtain

reasonable terms

wish to do so, sub-

unsatisfactory market conmay develop from
is S-i gratuitous pastime

flT" "Zr^u

However, bne does-^qt exhaqa- Ifttteiihb fn^teffel achievement^ 'bW*:
nai year,, ago, when the
tivelyd escrA
bapitalfedf by bbservihg that ther^ ccooom?ts' a^tef a. Ql?u fc,lr a.lew
'nKonrfof.
y_.

.x,

^-.I:-.•

-jr

consecutivo weeks!

iji

the

time to time. Certainly the present
is propitious.
'
,

•M7v.ii

o?..0mv

n,,v,r.

unless

business

-that,

improves."
Wo
unlike
stock

prices, the bond market's level
depends, in the long run, on the
Government's budgetary positioi i

-rnvne^- of ^perty narrowed
fW»
poor has been

penniless

S^«»m dteplayTrathlr rilght and the Sic
Sf'rihd public
"materiah'isfip

vrud^

vipw

dowhi. Ill older- ages the journeymen had. such a lovv pay that he

a«?-

—

SDh-itSal" stock market rise "otwithstandbuf.AS' bv -ing- Now that the recession apcould' hanlly lay. by something
the gXeSeht
hv Ihr^mn
lWars to be over and the stock
and if he nevertheless did
so, he .-jzatto1;f>0'e''OTMUet£n idctivhS "maricet is .selling at an all-time
could- orily keep his
savings^hyrdmi Aigbr ^falV Street, does not want
linghoarbing and. hiding ji few toins..'n^iPW'Tti this rLrrttS?®1®" about its Pessimistic prea. levy coins. v«chiewfri'^
this regard
Unlet apitalism his competence- ^Ih^roSm
winter
c
and°a com! ..dictions :df last Street's and spring.
"""""
As for-Wall
and

oiiu. luuiug

^ IrisSrionS^nTht^Mm
afe institutions that .enable: him
his funds in business
IP:.business,
A riot inconsiderable amount of

to invest

tlie

•
-

"u"

fiwn

nprsnnal

nf»rfpf»tinn

the

nprrnrmancc

c^-' com.vf-to°DoetrvyiBut°itefs ce"d
poetry. But it is cer-

mon

thereby,
Marxism,
TI/To-vvicrv.

common
^

man

iii

not

only-as

the

in
are

the

terminology tue
much
TUn'.'1.
...lit.
exploiters.
The *":•" ~ i 7Tirr: A

flowering
a

while
as

pre-capitalistic

they still prevail in

greater

is directly

interestbusirress

consumer and

Si? ih° acttou

the stock ' market, I am re'
mindcd of the st0ry °f thu tW°

:w^

part

*"7

the
.

•

to" the many a favorable chance
pf striving after them.

whatever angle

may

lohk upon capitalism, there is no

reason to lament
Allpcfp/Uv

tfrkrwH

the passing of the

rilH

Have

allegedly good old days.

Still

1p«<!

Still less

1113
e go
ng^"
cessibld^ only to a small minority

talitarian Utopias whether of the

of the privileged, capitalism gives

Nazi

•

is' it justified
-

corpo¬

now

substantially, higher than
they were a year ago, for new
corporate bonds are now beihg
ever,

sold with

interest cost

of ap¬

full percentage
point?higherdhan in June, or, fob
ah Aa bond, from approximately
a
3V>% to, a
basis.
As" to the'future, it* seems unproximately

one

likely that low interest rates will
return until and unless business

to long for the to-•

of the Soviet type.

interest

rates

might

substan¬

tially higher, Government efforts
to the contrary notwithstanding.
Indeed,

........

j-n-x!-'

While

speaking

the

bond

market, I would like to review
b,defly "s immediate past pres-

g°inting out the stork) yields. From November, 1957and
tremendous swmgs m pr,ces to
From

The

revived.

market,

tem¬

at the zoo with their ent and near-term futiire. In the
JL
In front of the aviary, the last 11 months, there have been

nurse.

,ric

policies; bonds and al'sb
stock,
wage
earners
and comics-to
salaried
people are ,Atheni3elves
that
rning interest
and
dividends'conditions

ance

investors'inflation

children

counterpart' of

-fac:

of.

nnH

capital-emplbyed in American

industries is

(including

Poteni^ whi,-h offer the individi
thAir

the

ih^Re
wal wiong,
was

an„acaslc

has

that several
huge industrial issue# havd been
absorbed,*'has also staged a strong
recovery. Interest rates are, how¬
rate

there are well-informed
people who" are convinced ihd
greatest economic problem for the
perature, and, in the short run, on;
United States in the next generdjTreasury policy and Federal Retion or so will be unavailability
of adequate amounts of capitals
action
Perhaps the moral of all this is worldwide expansion: Almost cel'that it is now impossible to be an
tainly this will be the case "if tHd
rriiAexpert in the old concept of the inflation gets out of hand! The
word, not only because the ground
existing higher rates do not hav^
„
rules are being changed frequent- as serious an effect, on'youiviirbut also because the factors dustry as appears on the
affecting our economy have be- At a 52% tax rate, a 5%
certainly not a
come complex.
rate is 2.40% net, certain
heavy charge' for the — of Ibn^use'
The Bond Market
tenn money. It differs little frcma
.

and

the

market

husiticss

recognized

siaius

Recently the Government bond

living;' accUsallohs is & fight"them"vigor- bility of at least a moderate inflacontrary^ The resultfng-progressiveprosper- ously iii spite of heavy cost in tion, and with business capable of

tfiaf assigns to the cqtn-

standard of

declined'

vestors convinced that we

DCfet.

market

growing economy, with the probam

bond

sharply than it had in any pre¬
G®od Time for Equity Financing vious three-month period, The
The recent: shift in investment new Government 3y4S, 1985, is¬
policy of American Tel. & Tel. is sued in June at 100xki declined
perhaps indicative of the changed to' 89; they have since recovered
attitude of many pension funds to 92 Vr. During the period of de¬
towards common stocks. The com¬ cline, a succession of public utility
pany announced a few weeks ago
offerings, sold for the most part
that its pension fund, now over at compulsory competitive bid¬
$2.6 billion in size, would invest ding, met such an indifferent re¬
up to 10% of its assets in common
sponse that not only did the un¬
stocks.
In making our appraisals derwriters lose money,- but also
of the stock market, we did not the market was lowered for each
weigh fully enough the impact of subsequent issue.
these and other outstanding sub¬
sequent developments.
With in¬ Recently Improved Bond Market
,

ment and before hearing a'word

-r :
' *.
•• •: from
The doctrine -and the policies of " wefe
^
■
- -•
;,;

the next 10

April, 1958, we enjoyed the sharp¬
est rise in prices and the greatest
decline

interest

five-month

any

During

this

rates

period.

time the Government agencies, in

series

rapid moves,

large quantity
market

recession.

of oxygen
effort

fed

the

net

cost

the- loV interest

'30s when taxes were

substantially

lower.

Timing Is Now Most Important

Nowf what are the lesson#, to
gained from the recent action

be
of

the

bond

market?

see

them, the first is that no? one is
smart
enough to forecast accu¬
rately its immediate future,: other
than to predict substantial fluctu4*
ations.

Under

the

circumstances,

to the timing of financing to take advan¬

stop

the

Government 4s of 1969,

tage of upward Swings in the inayContiriiled on

Financial Chronicle

The Commercial and
36

. .

Financing Economici
For the Gas Industry
important than

ket becomes more

it has been for many a

year.

While

have

$25,000,000 of

bonds weeks hence.

Unfortunately

the bidding took

industry, with its frequent
place at almost the worst moment
capital, should obtain
in all of 1958 for such a sale; the
they are needed, you
company, unlike Panhandle, had
should give much more careful
had to spend costly time meeting
the gas

for

need

funds

market trends
and to the avoidance of conflicts
with the sporadic, huge offerings
to

consideration

requirements. The com¬
pany at the last moment, fearing
a
high interest cost, reduced the
of
Government, industrial and
issue to $10,000,000.
Even for the
Telephone issues. Incidentally, if smaller amount, its interest cost
any of you will warn us about the was 4.85%.
v>
of

imminence

longish-term

any

the S.E.C.

The

F.P.C.

it did have

agement.-

tion enacted.

Naturally you want to obtain
pipeline industry your construction funds on as at¬
must be on your tractive a basis as possible. As the
guard, for the F.P.C., not satisfied attitude of investors towards your
with its right to impose financing 'common stock has an indirect but
conditions in the issuance of cer¬ substantial effect on the prices of
tificates, wants to acquire direct your senior securities, it is essen¬
jurisdiction over security issues. tial that your industry be well
Though unsuccessful every year regarded by common stock in¬
since 1950, the F.P.C. continues to vestors. Such investors today are
ask Congress for the power to placing increased importance on
approve or disapprove the security the possibilities of capital gains,
issues of interstate pipelines.
hoping to offset the depreciating
that the

Now

is maturing, you

convinced

objective

any

would prove conclusively
this freedom from Federal

survey

that

would

network

pipeline

a
an

extensive scale and

common

con¬

stockholder is

steady upward trend in
per

earnings

share.

Higher Earnings for Gas Not

Electric

economical basis than

otherwise
From

sible.

tor for

dollar.

the most important fac¬

sequence,

has resulted in the crea¬

control
tion

the

value

Money-Saving Financial Freedom

the

have

been pos¬

onset,

senior securities sold on a
with the senior securities of
electric companies. It is the

your
par

the

general feeling of the investment
fraternity that the gap would be

carried on

narrowed if you

a more

intensive institutional educational

Your

per

share earnings trend

has been far better than most peo¬

ple realize. This is proven by the
ments have been able to make a results of a study I prepared in
relatively unfettered choice
of connection with this discussion.
the financing vehicle best adapted While I had always been greatly
to the prevailing market. As a impressed with the development
consequence,
the
industry
has of earnings of certain pipeline
been able to meet the require¬ companies which I follow closely,
ments of the most sophisticated it was a surprise to me to learn
buyers. So great has been its suc¬ that a group of transmission com¬
cess in tailor-making its issues, it
panies representing a good crossmanage-

bonds

industry)

about

six

weeks

ago.

The resulting interest cost of ap¬

proximately 4.76% seemed so at¬
tractive, the company increased
the

issue

mand

to $40,000,000, the de¬
being great enough to take

^the additional bonds
basis. At about the

National

Fuel

Gas

whose bonds have

than

the

on the same
time the

same

Company,
higher rating

Panhandle

bonds,

was

preparing, under the regulations
of the S.E.C., for the sale at com¬

such that equity ratios as

are

campaign.

Basis

Earnings per share

47%

57%

Market

79%

view of

bond
sinking funds.

while the transmission

compared

follows:
Gas

Transmission

finance

Thursday, -October 23, 1958

capital

circles, great em¬

In investment

phasis is being placed on research.
In comparison with such expendi¬
tures in other industries, the
$500,000 which you are now allo¬
cating for the development
of
artificial means for making gas
does not seem a large sum to the

Rightly or wrongly, he
your
industry
is not
spending enough time and money
on
experimentation. He subcon¬
analyst.

believes

sciously,

consciously if he

young,
is disturbed
status of the industry
or

two when

about

is
the

in a gen¬
the reserves

be declining.
he insists that

natural gas may

consequence,

bonds

your

stock.

evident to him on

tion

you

are

The

gas.

$950,000 which

spending

now

appears

progress was
greater utiliza¬

such

to him to be small

considering the potentials in the

economical
gas-burning equipment for resi¬
widespread
dential

vidious

and

use

commercial

air-con¬

ditioning.

disclose the

ing rate of return on

investment,

they realize there are many prob¬

This

record

meet

1955 to 28.6%

ties—in

at the end of 1957.

some cases as

low

15%.

with this attitude
belief that heavy
depreciation charges are estab¬
lishing large hidden asset reserves
which in effect make the position
do

of
as

not

the

con¬

regions in which there is
All of

to those
a

demands

Capital, being fluid, flows

sumer.

live and let live attitude.

know the

names

of those States

whose enlightened regulatory

icies

have

aided

pol¬

the develop¬

utilities

their

fited.

The critics to the contrary, over

itive, more and more attention is
being paid to management by the
financial managers of insurance

companies, pension funds, invest¬
trusts, and other institutions.
Though members of the finance

ment

of these funds recog¬

committees

that

nize

the

that

has been greatly bene¬

May there-be an increase

in the number of such States!

management

perhaps the politicians and the
regulators wijl fly to other coun¬
tries, thereby contrasting the great
achievements of your industry and
thb electric

industry with the per¬
nationalized systems

formance

England, France, not to men¬

tion Russia.
?

let

concluding,

express

the

hope not only for your sake
but for that of the consumer that

before this time next year
the Memphis maze

long

the way out of

will

have

retarding

will

expansion

that

and

found

been

roadblocks

other

have

your

been

re¬

moved.

your

With Donald C. Sloan
companies has been excellent,
they question whether or not the
(Special to Thk Financial Chronicle)
industry is doing enough to ob¬
PORTLAND, Oreg.— Jack O.
tain, develop and retain the young Rickli is - now with Donald C.
men
of promising ability.
The Sloan &
Co., Cascade Building.
sophisticated investor asks him¬
self: (1) are present salaries ade¬
quate? and (2) does the industry Now With Walston & Co.
offer enough incentives to attract
(Special to The Financial Chronicle)
and hold top managerial person¬
PORTLAND, Oreg. — Peter G.
nel in competition with other in¬
Cosovich is now with Walston &
dustries?

available

The

data

indicate

industry generally
has not kept pace with other in¬
dustries in the payment of execu¬
tive
salaries.
The
explanation
stems from the probable fact that

that the utility

Co., Inc.*, 901 Southwest
Field & Co.,

with

Inc.

Daniel J. Grey
ISLAND

LONG

Washing¬

He was formerly

ton Street.

Opens

CITY, N. Y.—

Grey is engaging in a

Boards of Directors hesitate to pay

Daniel

comparable to those of
non-regulated industries because

securities business from offices at

salaries

possible disfavor by the public
by the regulatory commis¬
sions. In my opinion, it is in the
interest of all that this situation
and

corrected.

Forty-first Street.

21-55

at the Edi¬

Electric Institute Convention,

detail.

the

agree

senior

securities

time goes on.

stronger

Moreover, in

company

the
and of raising its initial

salaries.

Subsequently, its repre¬

stressing the opportunities in

sentatives, armed with persuasive
brochures,
visited 25 campuses
and hired 52 students from the

graduating classes.
so

The company

convinced of the soundness of

that it is carrying it
intensively this year.

its

program

Now, how about stock options
for senior and junior officers? In¬
creased

Co. has

d i

opened

—

Draughon.

the

ing promising seniors. The officers
soon recognized
the necessity of

Irving
branch
102. Main Avenue under
e c t i o n
of Harris N.

DYERSBURG, Tenn.
Weis

subject in some
As I said then, the recruit¬

discussed

Irving Weis & Co. Branch
office

Sixteen months ago
son

ment of promising engineers and
political, regulatory and
potential executives is of at least
legal nature facing a substantial
of equal importance as the salary
segment of the industry. As you
scale.
My studies last year indi¬
know, these problems are con¬
cated that the utilities generally
cerned primarily with the ques¬
were backward m comparison with
tions of natural gas rates gener¬
other industries in their recruit¬
ally and with control over gas
ment programs.
producers. They were spawned in
This year there has been a ma¬
the so-called Panhandle, Phillips,
Mobile and Memphis cases. The jor break-through by Consolidated
investors are convinced that their Edison Company. Its top manage¬
visited
many
colleges to
solution necessitates fuller coop¬ ment
eration
and
understanding be¬ learn how the company could be¬
come more competitive in attract¬
tween producer and consumer in¬

because

notwithstanding,

ownership of a

by its officers and other

company

personnel

please the investor, for he
believes that he is best protected

& Co.

With Reynolds

lems of a

names.

is to supply the

informed investors to¬
day look ahead confidently to sub¬
stantial expansion in the sales and
earnings of the industry, spear¬
headed by natural gas, and though
they recognize the past growth has
been accompanied by an improv¬
Though

62%
84%

specific and in¬
comparisons, I will not

given fair treatment if he
capital necessary
permit the utility industry to

must be

ment

Upgrading of Bonds

investor

the

that

confident

consumer

if more

impressed

work

sinking

heavy

have

The analyst would also be

funds.

Cor..

In order to avoid

expensive than com¬

years there has been a sub¬
in the belief that by so
stantial upgrading of your bonds.
doing they reduce their cost- of
In
1940, 15 gas company bonds
capital. It is our observation that:
had a low substandard rating of
some of you are backward, in this
B and 18 more had a substandard
regard. Do not be hesitant to fol¬
low the example of the electric rating of Ba. By the end of 1957
there was no gas bond in the sub¬
companies because you' do not
standard
categories. Parentheti¬
have large, shiny generating
plants to show off. You have a cally, only publicly offered issues
are rated.
fine story to tell, and you should
As the market for your securi¬
tell it more widely.
ties becomes increasingly compet¬

eration

healthy regulatory

the

programs

123%
108%

earnings basis

on an

prime

the

stressed

not

still less

have

climate.

of management to
cheaply as possible,

due

the

decision denied-the petition of

Brooklyn Union Gas to establish
a stock option plan. • In my judg¬
ment, this decision should not de-!
ter companies from endeavoring
to establish sound option plans.

cash importance the investor places

safely carried is justified because
deductibility of interest.

companies conduct, in¬
stockholder relations

Cos.

Earnings per share
Market price

have

regard for the mainte¬
properly balanced cap¬
italization. This means that a cap¬
ital structure containing the full¬
est amount of debt that can
be
with

nance

and

All, if not more than all, of this
companies decline is probably accounted for
by the creation of new pipeline
companies with low initial equi¬
Electric

issues

It is the duty

mon

86%

price

necessary,

company

As most of you are aware, many

vestor

particularly in
the fact that few electric

not

Debt

Selling Bonds On Lower Yield

electric

high

electric industry

the

those

of the tax

has sold section of the industry had on the
more bonds in recent years to the
average out-performed the elec¬
big life insurance companies than tric companies, operating in the
have all the electric companies. same general areas, in increase of
An important by-product of this per share earnings and in market
financial freedom has been the prices, and that a fairly selected
money-saving flexibility in the group of distribution companies terests.
selection between private place¬ had done nearly as well. Included
ment, negotiated public sale, and in the study were 12 of the larger
Endorses Equity Ratio
competitive bidding, and in the gas distributing companies, 8 pipe¬
There are security buyers who
lines, and 16 electric companies
timing of such sales.
feel that it is in the long-run in¬
in one comparison, and 12 in the
Let me give you an example.
terests of some of your pipeline
other.
The Panhandle Eastern Pipe Line
companies to increase their equity
In the 10-year period from 1947
Company, not wanting to buck the
ratios in order to bring such ratios
downward trend in the bond mar¬ through 1957, the gas distribution
more
in line with those of the
ket, employed us and Merrill companies compared with the electric companies. They point
Lynch, Pierce, Fenner & Smith to same area electric companies as with alarm at the decrease of the
place privately—that is, with a follows:
composite common stock equity
Gas
small group of institutional in¬
ratio of the gas transmission com¬
Distribution
Electric
vestors—and
quickly $30,000,000 f/c Median Increase
Cos.
Cos.
panies from 30% at the end of
(the pipeline

by the long-term pur¬
chase and sale contracts for gas

might claim that if
jurisdiction over nat¬
will be extremely grateful. > The
ural gas financing, it would be
eecond lesson is that you should
more responsive to the economic
keep your capital structure in facts of life than has been the
euch sound condition that you will S.E.C.
But, if past history proves
obtain your share of the available
anything, such would not be true,
long-term bond funds at a rela¬ for thet F.P.C., like the S.E.C.,
tively reasonable cost, provided, has made exceedingly few excep¬
of course, the politicians do not tions to its rule that all electric
monkey too much with, the laws
bonds, economic conditions not¬
of supply and demand for gas.
withstanding, issued under its
It has been fortunate for your
jurisdiction, be sold at competitive
industry that the pipelines have bidding after the filing of an ex¬
o been relatively free of regulation
pensively
prepared registration
by the F.P.C. in raising the tre¬ statement.
mendous sums that have been
Those companies in your indus¬
necessary for their construction.
try which are subject only to
Some of you will, recall that the State commissions for the issu¬
early drafts of the Natural Gas ance of securities, are fortunate,
Act of 1938 included a provision
for, in my opinion, the State com¬
placing the security issues of nat¬ missions generally are much more
ural gas companies under F.P.C.
responsive to the. long-run inter¬
jurisdiction, copying in this re¬ ests of the consumer than is the
spect the Act for electric com¬ centralized S.E.C. with its chang¬
panies. ^Fortunately, this power ing philosophies and shifting man¬
was
not included in the legisla¬

Government bonds, we

issues

that the gas bonds
generally much heavier
sinking funds and shorter ma¬
turities. There would be substan¬
tial savings for your companies if

are

afforded

the investor

spite of the fact

petitive bidding of
for the company,

opinion,

preferred stocks sell on a lower
yield basis than the similar se¬
curities of the gas transmission
and
distributing
companies
in

■;

protection

the

electric utility company bonds and

Continued jrom page

;•

(1700)

(Special to-The Financial

SAN

Chronicle)

FRANCISCO, Calif.—Lu¬
joined the staff

cille P. Morris has
of

Reynolds

gomery

425

Co.,

Mont¬

Street.

With San Jose Investment
(Special to The Financial

Chronicle)

Calif. — John I.
Johnson has been added to the
staff of San Jose Investment Co.,
SAN

JOSE,

Inc., 476 Park Avenue.

Joins Liberty

Investment

(Special to The Financial

Chronicle)

DENVER, Colo.—Dan C. Griffin
has become affiliated with Liberty

St.

Investment Co., 511 Sixteenth

Two With Russell Inv.
(Special to The Financial

Chronicle)

Colo. —Mrs. Minnie
and Aaron L. Seiver have become
connected with Russell Investment
DENVER,

Co., Boston Building. Mrs. Enger
was
formerly with H. Carroll &
Company.

would

companies in which the officers
a
substantial stock interest.

Now With George
(Special to The Financial

have

policy of the industry towards
option plans appears to be
almost negative in spite of the fact
that an increasing number of in¬

The

stock

dustrial

CHICAGO, 111.—James N. Hambourger

now

affiliated

with

George M. Baker & Co., 208 South
La Salle Street, members of the

Midwest
Stock
Exchange.
companies are adopting
The New Yorl$ Public- Hambourger was formerly
Commission in a recent Hemphill. Noyes & Co,

such plans.
Service

M. Baker
Chronicle)

Mr.

with

Volume 188

Number 5788

The .Commercial and Financial Chronicle

(1701)

The following statistical tabulations
latest week
week
Latest

capacity)

Week

Oct. 26

§74.8

Month

*74.2

castings

and

(net

tons)

§2,018,000

'2,003,000

1,816,000

August:

oil

and

condensate

output—daily average

2,052,00.

Crude

runs

*_Oct. 10

7,013,585

Dct. 10

117,723,000

7,507,000

Oct. 10

27,636,000

*26,563,000

7,009,235
7,845,000
28,056,000

:Oct. 10

2,262,000

1,730,000

2,088,000

_Oct. 10

12,292,000

Oct. 10

to-stHls—daily average'(bbls.)

Gasoline output

6,873,785

6,613,000

;

(bbls.)

Kerosene "output (bbls.)______—_
fuel oil output (bbls.)_

___.

Distillate

"Residual

fuel

oil

output

(bbls.).!

;

fuel

Residual

6,728,76

IMERICAN HOME

7,744,00»
27,363,00
1,856,00
12,401,00

12,415,000

6,709,000

6,788,000

ERS
Total

*172,582,000

31,364,000

146,190,000
: 68,378,000

68,742,000

172,683,00(

ENGINEERING

CONSTRUCTION

112,155,000

125,193,000

109,042,000

electric

135,955,000

227,911,000

Jet. 16

119,197,000

184,271,000

223,325,000
201,133,000

159,303,001

Dct. 16

16,758,000

43,640,000

22,192,000

22,703,000

8.525,000

*8.435,000

8,345,000

9.885,000

457,000

486,000

.483,000

147

*145

145

12,048,000

12,067,000

12,240,000

Dct. 11

treet,

inc.

composite

industrial)

182,006,001

•

Crude

dun

—

tZinc

*St.

489,000
;;

■

227,565,000

212,558,000

235,535,000

203,700,000
23,822,000

190,240,000

212,771,000

(barrels of 42 gal¬

oil

imports (barrels)—
product imports (barrels)

INSTITUTE

September:

288

271

262

6.196c

jet. 14

$66.41

*$66.41

$66.42

Jet. 14

$42.50

$42.83

$43.17

$37.33

;

258

■

end

37,736,000

19,065,000
271,036,000
2,510,000

*255,258,000
7,058,000

269,449,000

-I!

U-T

COAL OUTPUT

all grades

(tons

63,705

(tons)-

(net

Oven coke
Dct. 15

26.100c

>ct. 15

—

27.300c
28.975c

27.025c

Jet. 15

————

13.000c

12.268c

——i—————----- Dct. 15
:

12.800c

26.075c
25.300c
•

•

13.500c

12.068c

10.550c

11.500c

11.277c

10.500c

10.777c

10.000c

Jet. 15

24.700c

24.7Q0C

26.000c

;ct. 15

96.125c

96.500c

:,iul95.6!26c

—,
—

Oct. 21

87.94

Dct, 21

;

tons)———

13.300c

Month

PRICE

92.000c

90.06

89.38

4,314,766

*3,957,230

6,539,600
6,382,600

—

4,275,546

3,927,718

39,220

*29,512

157,000

(net tons)

4,006,918

3.982,524

2.544,906

123.9

121.0

1947-40^100—

August:
':

—

>?:'

,.:i,

Cereals

and bakery products
Meats, poultry and fish
Dairy products

89.46

85.98
89.37

Fruits

94.41

94.56

Other foods

93.08

92.79

91.91

89.64

89.92

83.03

83.91

82.15

Jet. 21

88.13

87.86

88.54

87.86

Solid fuels

Jet. 21

89.64

89.37

89.64

88.95

92.64

92.35

91.05

Household

93.08
89.78

;

Group

S. Government

daily

3.47

4.41

4.42

4.41

-I

;

4.11

4.10

4.20

4.22

Public "Utilities -Group
Industrials Group

4.43

4.44

4.42

4.90

4.94

4.87

5.01

4.55

4.57

4.52

4.57

——

4.44

4.46

4.44

4.49

Oct. 21

4.23

4.25

4.34

390.2

388.3

.392.1

387.5

Oct. 11

296,458

310,445

273,642

Oct. 11

308,795

373,237
308,845

305,978

299,922

national paperboard association:
Orders received (tons)—:
:
Production
tons)—
-

"•

Percentage of

Oct. 11

466,878

482,780

—-Oct, 17

activity

Unfilled orders

108.69

(^ons) at end of period

97
:

;

„

509,651

517,385

oil, faint and drug reporter price index—
10*9 AVERAGE
round-lot

—

KM)

transactions

account

for

mem-

•

108.79

108.60

1:1: 'JMIllltm

bers, except odd-lot dealers and specialists:
specialists in stocks in which registered1
: .lept. 27

...

•

109(88

ujiihimi

Women's

Total -purchases

1,762,520

1,831,190

Other

Short

sales

Total

■

transactions

purchases

Short

for account of

Total

securities

Short

Crude

(tons

2,000 pounds)

In U. S. A. (tons of 2,000 pounds)
Refined copper stocks at end of
period

AND

Consumed

LINTERS

month

—

DEPARTMENT

577,180

389,010

378,610

786,759

815,470

519,140

586,090

129,770

148,410

93,590

84,790

875,004

983,360

712,932

520,595

Crushed

1,004,774

1,131,770

806,522

605,385

Stocks

COTTON

Aug.

SEED

AND

UCTS—DEPT.

of Aug.

COTTON

3,932,189
(586,920

3,410,664'

4,097,584

3,820,060

2,774,060

2,671,080

720,790

499,160

416,680

3,363,970

2,411,452

2,426,485

4,084,760

2,843,165

2,910,612

Total

ON THE N.

1,515,446
$72,896,620

1,155,792

1,578,868

$51,501,247

$72,104,456

Stocks

1,131,479

1,624,854
6,252

6,092

8,354

20,597

,ept. 27

1,618,602

1,627,413

1,201,258

1,110,882

$75,586,968

$74,081,521

$51,688,977

$53,713,620

543,880

567,610

453,150

259,880

5437880

567~6l6

453~l5Q

259~880

445,170

461,570

385,280

720,564

1,633,505

1,209,612

(tons)

—!

Refined

August

31:

858.740

18,799,540

3ept. 27

19,658,280

678,420

683,660

18,003,370

13,455,480

12,586,260

18,808,000

14,133,900

13,269,920

844,630

—

commodities
Farm products

foods

Meats
AG commodities other
than farm and foods.

141,951

260,003

37,972,000

36,787,000
48,393,000
46,523,000

48,129,000

45,054,000

50,414,000

53,996,000

94,564,000
47,029,000

129,763,000
49,368,000

91,901,000

82,658,000

78,441

(pounds)

August 31_
(pounds)
(pounds)

Stocks

(tons)

Produced

August

112,475

—

98,945,000

43,777,000
103,764,000

69,370

59,542

103,404

109,290

209,556
71,002
113,262

86,947

97,322

45,359

36,078

32,568

32,441

46,453

(tons)
(tons)

49,037

HullsStocks

(tons)

Produced

August

(tons)

Shipped (tons)
Linters (running bales)—
Stocks August 31

29,324
162,188

35,071
56,848

45,398
65,489

230,548

(T,bM~rb.~ba!es)™

Fiber

Stocks

319,390

131,451

Rull

August

Oct. 14

118.8

*118.8

119.0

117.7

Oct. 14

92.0

*92.1

93.2

<11.7

Oct. 14

110.1

*110.3

111.3

105.2

.Oct. 14

104.9

105.4

109.1

Oct. 14

126.1

*126.1

126.0

91.0
—

125.7

avoid

disclosure of figures

(DEPT.

Month

706

431

285

738

599

STORE

SALES—FEDERAL

SYSTEM—1947-49

for

individual companies.

COMMERCE):

Spinning spindles in place on Aug. 30
Spinning spindles active on Aug. 30
Active spindle hours (000's omitted) Aug. 30
Active spindle hours for spindles in place Aug.
SERVE

3,711

864

Shipped

DEPARTMENT

,<a)

3,279

(1,000 pounds)—

275

432

(a) Not shown

589

ta)

(a)

(a)
!

August

215

COTTON SPINNING

All

238,086

174,515

38,025,000

(pounds)

Motes, Grabbots, etc.

Sept. 27
——Sept. 27

sales

81,347
132,108

330,385

Oil-

Stocks

S. DEPT.

304,504

147,634

August

(a)

TRANSACTIONS

sales

18,079,000

STOCK

sales

Processed

783,150

17,501,000

PROD¬

42,609

Commodity Group—

680,313

COMMERCE—Month of

mills

(pounds)

Shipped

(SHARES):

989,804

Cake and Meal—

1,530,617
$72,642,126

Sept. 27

Produced

Stocks

Sept. 27
Sept. 27

sales

—

63,365

9,340,541
104,832
723,639

(tons)

Consumption

.Sept. 27

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49
100):

665,532

•84,985

SEED

613,511
1,603,129
6,850,617

Seed-

Received

Produced

Sept. 27
Sept. 27

sales

Cotton

round-lot sales—

Other

638,767
1,504,070

6,850,815

17,541,000

;

Produced

Short

102,923
176,813

Crude Oil—

by dealers—

EXCHANGE AND ROUND-LOT STOCK

86,982
215,560

(586,190

lept. 27

FOR ACCOUNT OF MEMBERS

94,195
117,078

BALES:

339,810

commission:

Other sales

Total

♦76,916
100,64.0

101,539

332,510

SALES

126.7

178,494

528,180

sales

TOTAL ROUND-LOT STOCK

112.6

(tons

2,000 pounds)—

622,190

Sept. 27
,—Sept. 27

Round-lot purchases by dealers—
Number of shares

138.6

124.9
,

107,635

Cotton spindles active

lept. 27

exchange

144.6

86,392

Refined (tons of 2,COO pounds)
Deliveries to fabricators—

38,800

(customers' purchases)—t

shares—Total

127.2

^ 356,780

value

Number

127.1

;

56,500

Sept. 27

other sales

Round-lot sales

and services

389,420

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

Dollar

116.6

49,000

members—

value

short

128.9

116.7

614,480

3ept. 27

-Customers'

128.9

145.0

recreation—

(54,000

•

"Customers'

—

and

675,880

stock transactions for odd-lot account of oddlot dealers and specialists on n. y. stock

Dollar

125.6

1,859,170

Odd-lot sales by dealers
Number 61 shares

135.9
180.6

1,715,080

—

140.3

2,375,810

sales

exchange

.92.0

189.5

2,406,620

Sept. 27

sales

98.6

128.3

92.0

129.3

293,090

;

sales

Other

98.6

129.7

August:

sales—

round-lot

108.8

141.0

1,566,080

Other sales
Total

108.5

103.9

130.1

349,070

—

106.6

189.5

—Sept. 27
Sept. 27

Sales

128.0

106.7

;

Sept. 27

—^

135.7

104.0
131.2

COPPER INSTITUTE—For month of
September:
Copper production in U. S. A.—

Stocks

—__j,

132.3

91.9

u—!—-.

-.,!!——

vocds

113.3

98.5

care

Personal care
Other

135.4

130.0
•

Sept. 27
_3ept. 27
iept. 27

•

purchases

———

1,366,010

transactions initiated off the floor—

Total

girls'
—

3ept. 27

sales

Total

and

523,380

floor—

the

125.7

137.8

117.0

108.3

——

1,852,430

Other

boys'

Sept. 27

113.8

127.7

106.6

4a3,150

>■

ept. 27
-ept. 27

:3ept. 27

sales

121.3

111.8

132.1

!„—

1,913,470

Other .transactions initiated
Total purchases:—
;

111.5

112.8

103.3

COMMERCE—RUNNING

2,390,110

111.9

131.9'

133.6

—

August
In consuming establishment as of
Aug. 30
In public storage as of Aug. 30
Linters—Consumed month of August

Other sales,
sales -

Total

Short

and fuel oil

operation

Private
Medical

COTTON

2,469,550

119.2

112.4

117.5

apparel

Public

Transactions Of

■

Transportation

'li'"I'

■

electricity

and

Reading

—

Other

4.46

——.—Dct. 21

___.

Moody's Commodity index

and

Footwear

4.28

Oct. 21
Oct. 21

—

.Oct. 21
-—Oct. 21

Baa

Railroad Group

Men's

3.74
.

——III—II———I——IIII—IIIII"ZZZIIII~II~— Jet!

138.1
Gas

4.46

4.10

4.20

Jet. 21

;

3.47

4.09

Average corporate—

3.62

131.0

127.9

at home

Housing

averages:

Dct. 21

117.9
116.6

132.9

124.9

vegetables

Apparel

Bonds—

121.7
120.5

117.7

—

and

94.56

■>

113.0

Housefurnishings

Jet. 21

89.37

89.92

120.7

J-*.

119.2
132.9

home

90.06

•

123.7

—

Food

2,173,000

~
I

INDEX

83.53

;
.

*34,180,000
*1,779,000

40,745,000

2,073,000

—:

(net tons)

Food

94.71

yield

77,455"
72,98b

153,766

MINjES)—Month of August:

All items

11.000C

35,990,000

—

coke

CONSUMER

Jet. 15

corporate—^—:.—!

bond

69,309
251,529

238,116

(net tons)—
Oven coke stock at end of month

22.300c

10.750c

Beehive

26.250c

-—Jet. 15

_j_L-

Louis) at——:

S. Government Bonds—

moody's

62,927

77,118

—

(BUREAU OF MINES)—Month

COKE (BUREAU OF

moody's bond prices daily averages:

Industrials

16,862,000

Bituminous coal and lignite (net
tons)Pennsylvania anthracite (net tons)—.

5.967c

Production

Railroad Group
Public Utilities Group

13,040,000

...

period

22,743.000
21,000

60,000.

28,802,000
♦20,956,000

export

Shipments (tons of 2,000 pounds)———
at

22,258,000

43,000

26,916,000

INC.—Month

■

Slab zinc smelter output
2,000 pounds)"-!—

11,684,000

6.196c

Average

6,229,353

INSTITUTE—Month

of September:

Aluminum, (primary pig. 99% ). at—
Straits-tih (New York) at—
U.

crude

AMERICAN ZINC

142

Oct. 14

—.—,

8,977,906

4,081,744

—

Jet. 16

Louis)

(delivered)

Zinc (East St.

*7,236,003

tons)—■

oil

Stocks

—

Lead (New York)

'"Dead"

(net

consumption domestic and
(barrels)
Increase all stocks (barrels)—

Export refinery at—
at—

7,611,000

11,980
334,348

INSTITUTE:

Indicated

& m. j. quotations):

refinery

117,055

483,383
.

castings produced

each)'

Refined

Electrolytic copper—
Domestic

STEEL
for

prices:

(per gross ton)—

(e.

75,513

lb.)

(per

metal prices

Jet. 11

Oct. 18

Pig iron A per gross ton)—i
Scrap steel

-jet. 11

100

000 kwh.)

<commercial and

Finished steel

109,833

output (barrels)III"I
Natural gasoline output
(barrels)—
Benzol output (barrels)

institute:

Electric output (in

7,829
277,287

4,835,023

AND

steel

PETROLEUM

Domestic

130,340,0(X

index—federal reserve
—

360,629

13,659

of July:

lons

—

AVERAGE

450,277

I~_i._-.__I

Total domestic production

-Jet. 16

sales

SYSTEM—1!>17-4«>

AMERICAN

——Dct. 16

Pennsylvania anthracite (tons)—.—

iron age

606,484

—

department store

br ad S

741,52C

539,521

11,700

84,800

326,785

Shipments of steel products

$312,346,00C

output (u. s. bureau of mines):
coal and lignite (tons)—

failures

665,999

572,109

$332,367,000

Bituminous

edison

677,016
....

$353,104,000

State and municipal—

coal

686,138

$248,110,000

Federal.

4,927,800

13,300
95,400

August;:
factory unit

(net tons)—Month of September

59.041.001

.-Oct. 16

construction—

4,751,600

9,100

86,400

—

IRON
Steel ingots and

—

Private construction

Public

ENGINEERING

—

■

construction

4,898,400
1_

Month of August

569,817

5,024,300

•-.

IMERICAN

35.846.00

Ago

4,860,300

MANUFACTUR¬

home

Washers

156,528,000

68,996,000

177,948,00

Year

Month

4,993,900

(M therms)_

Combination washer-dryers

7,313,000

172,891,000
29,648,000

31,317,000

158,742,000

-Oct. 10

freight loaded .(number of : cars)Oct. 11
Revenue freight received from connections (no. of cars)—Jet. 11

NE\yS-RECORD:

Month

LAUNDRY

Dryers

Revenue

Total U. S.

sales (domestic)

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

-For month

ASSOCIATION—Month
laundry appliance

172,914,000

of that date:]

(M therms)!

,—Dct. 10

(bbls.) at
(bbls.) at

oil

Distillate fuel oil

„

12,276,000
"

Stocks at refineries, bulk terminals, in transit, in pipe lines—
■
Finished-and unfinished gasoline: (bbls.) at
-Oct. 10
Kerosene Tbbls.l at—
1—.Oct. 10

either for the

are

are as

Latest

•Manufactured gas sales (M therms)
Mixed gas sales (M therms)-

(bbls.

42"g«Gons each)

Natural gas sales

american petroleum institute:
Crude

of quotations,

cases

AMERICAN GAS ASSOCIATION
Total gas sales

Oct. 26

or,

■

Ago
82

67.3

...

production and other figures for ths

cover

Dates shown in first column

that date,

YeM

Ago

Equivalent to—
Steel ingots

month available.

month ended

Week

american" iron and steel institute:
Indicated Steel operations (per cent

20,635,000

20,878,000

17,541,000

17,501,000

21,192.000
18,039,000

8,070,000

8,048,000

8,368,000

403.5

321.9

418.4

RE¬

Average^IOO—

of September:

Adjusted for seasonal variation
♦Revised figure:

flncludes 927,000 barrels of foreign crude runs,
§Based an new annual capacity of 140,742,570 tons
of Jan. 1,. 1958, as
against Jan 1„ 1957 basis of 133,459,150 'nns.
tNUmber of orders not reported since introduction of
Monthly Investment" Plan, iPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
as

138

*147

136

Without seasonal

141

*129

139

34.9

64.3

76.9

INTERSTATE
Index

adjustment

COMMERCE

COMMISSION—

of Railway Employment
September (1947-49=100)

At middle

The Commercial and

(1702)

Financial Chronicle

stitutions into the stock .market.

Mutual Funds

Doubled

ditions

good, prices are good.
He also predicts that the market
conditions are likely to continue
to be good for a while and for
this reason we continue to be
pretty fully invested. are

Wiesenberger predicted that the mutual fund in¬
dustry will have assets of over $40 billion and "at least" five"
million shareholders by 1968.
*
"This is only a little more than three times greater than the
;
approximate $11.5 billion of present assets,

added:

of this

quarter.

Portfolio

changes in the third
included purchases: of
Armour & Co.; Bucyrus-Erie, Chi¬
cago Rock Island & Pacific RR.,
Combustion
Engineering,
Delta
Air Lines, National Malleable &
Steel Castings, Newport News
Shipbuilding & Dry Dock, North¬
west Airlines, Smith-Corona,
Spiegel, Stone & Webster, TWA,
V. S. Rubber, Westinghouse Air

ness

Brake and Wilson & Co.

Eliminated

from

the

mutual funds is developing so rapidly,
said, that virtually alLearlier estimates pi
future growth and size have proved under-

Arthur

Wiesenberger

'stitutions."

realm of

possibility, but that they, too, may err

the

Wiesenberger listed four factors behind: the ''dynamic
continuing growth of mutual funds:
y>;
(1) The good performance records of funcls generally and-the ;
widespread satisfaction of shareholders with their investments.
(2) Sound merchandising of fun# shares through many new i
and
different
techniques and pn ever-expanding salpsK'^orce v;
reaching more deeply into every corner of American life.
(3) The continued vigorous growth of the American economy d.
leading to mounting stock prices and higher investment company

completiqn of this offering. Wil¬
liam; Street Sales; Inc. will be the
sole distributor qf Scudder Fund
of
-

key

(At

;

/being- offered

less

the

of'

percentage

which

ai)d want; their share of it. ; * ~
The report covers ;thn .activ¬
ities pf the

are

than $25,000.

-trai|sacti6ns involving more than
$25;()p0, the sglCs commission is a

Americans. t^tieyein tbe
economic future of; America—

business
on
Friday the pet a§§et t; value was
$12.26.1 per-share;) ' For
single

Canada shares.
The

transactions

ingredients in I
planning. Fur¬

thermore; he adde#/ such ac¬
ceptance shows that more and r

■

of .the offering price
down for larger

scaled

sales;'• ■•'•

Association during

ThelFund reported net assets of

.$53,433,127,; and. 4,772,000 Common
abd^notes ^at
GpVerhdrs Avas t Shares were .outstanding on Oct.
-15, 195$ after giving effect to a
expanded from i5 to 21 irjembers, reflecting, the increased - i4 fhr 1 split earlier thissnohth. :
The,; stockholders at a special
activity of the - Association and
meeting ; on Sept. 24, (958 approviding for ^id^ 'member;proyedSan?increase in the Fund's
Ship
representation I 'on ~; the
v litboiized. capital
to 20,000,000
Board.■ - -' "*
: '■
shares in .anticipation „of the new
; Mr. Welch said the Associa¬
tion, in .the Interests :of Its I ;policy: bf offering shares " conmembers and the. increasingly
tinuqusly. Scudder, ^Stevens '&
Clark Ltd., a wholly^o\yned af¬
large number of Investors, has <
the fiscal year
the Board of ;

assets.

(4) The increasingly widespread belief in the "inevitability" "r".
•**'

"Today mutual funds and their sponsors are by far the most
effective merchandisers in the investment business," Mr.: Wiespi-.

nationwide
group
'02
.security
Idealers until Dec. 31, 1958. At the

sound financial

Mr.

of inflation.

the

are

and

Street Sales, Inc. are offering the
shares,. to the public thrpqgh a

investors generally that man¬
agement—the men behind iri- *
vestments—plus diversification'

...

con¬

servative side."

Company AcT^f ^40.*
Lehrnhn Brothers and Wjlliam

He said that such acceptance
stems from the realization by:

the

Qct:;21?:its^n^w^pblicy of

rc.gistercd:7ii^^i^#^^^

ineiit

company glares as .a,
med iu m
of, financial:

tested

us to a business of $4Q-$50 billion, with more than five
million
shareholders., We not only believe these figures are well within

j?pany

indicated thai his«

planning for investqrs;.of -mod-;
erate; means,
for^ iarger lnyestors and for.trustees.and in-.

were Ohio Oil; Shoe Corporation
of America; and U. S. Gypsum.

the^AssoMStfori^

pi
Welch

vestment

"Continuation of this trend over the next 10 years will bring

Bcudder>;Fund >ofpanada, Ltd.

eontinfiftiislTr

optimism was: based* on "the
ever-growing acceptabgeef in-

'prejudiced,' but our figure was surpassed by the cnd .of y
time.*'
V

portfolio

iiriitiated

•-

♦

"They are rapidly making investment a relatively;^;
pleasant business with none of the mystery and mumbo:jumbo that used to surround investment matters;
"Such things as accumulation plans, check-a-month plans,
!
withdrawal plans and other mpdern forms of investing areyin
tune with the times.
The American desire to build a financial^' expanded' its program in the- filiate of the investment counsel
backlog or estate out of current income while personal ;eariJi4i^s'.Clark',
field of public fqfQrm.atiqn and" .firm of Scudder StjeveiiS
are-high is growing apace."
1
•
-':l services to members,^ while at \ Dis investment advisortp the Fund.
Mr. Wiesenberger noted that there are about 20,000 invest¬
The management of
-Fund
continued^ its activities in the;
ment dealers and sales representatives in the country today—
<
has- expressed confidence in the
state and Federal tax and se¬
berger said.

simple

and

double the number four years ago.
He forecast that, because of
increasing public interest in mutual funds, a retail sales force of

Prospectuses available from
your Investment Dealer pr

about 50^000 will be in the field by
His projection of $40 billion in

1968.

mutual fund assets by 1968,

curities fields.
The

long-term growth bf.the .paiiadian
economy and believes that attract

Association

comprises
146 .open-end ..(mutual; fund).
and 24 closed-end companies
J

tive

investmeni opportunities ih

-Canada will continue rtd.be avail-

Mr. Wiesenberger said, is related to a continued expansion of the
American economy leading, in turn, to "materially highhr" stock

EATON A,HOWARD, Incorporated
24 Federal St, Boston, Mass.

market averages.

"Over the next several yearp, and barring major

•

with

(

than

war," he said, "we look for a Dow-Jones Industrial Average of at
least 50% higher than the recent record high."
Mr. Wiesenberger said increasing awareness of the "near-in¬

EITHER PROSPECTUS

evitability" of inflation has brought wealthy individuals and in-

ESTABLISHED

192 5

A mutual fund investing in

(The" total

$13 billion.7

PMIa. Jm. tst'i It

net increase in the assets of

Trust

Corn

and
increase the flexibility
of
portfolio management. The Fund
will also be able to accommodate
shareholders who have expressed
•

PHILADELPHIA, -Pa. — James
Mickley, Vice-President of the

Girard

Exchange

desire

means

will address a luncheon
meeting of the Investment Associatipn of Philadelphia on Friday,

limit

Oct.

regular

periodic

pur¬

•;' ./."/..."V'''■■

...

income

The

to accumulate'
^hares

chases.

Bank,

can

hopes that 1 a continuous
offering of new shares ^will result

.the Fund, which should.contribute
to the orderly gr.owth,of 5the Fund

as^hrances

Fund

Hear J. J. Michley

FRANKLIN

-Although qd

Dbe, given, the '.management of the

net' assets of the 146 open-end *
funds as of Sept. 30, Was $11,-

Get the facts on

Incorporat cd
Ipvcsiors

combined assets

-able.

750,000,000.)
:

FREE ON REQUEST

policy
its

the

Fund

investments

to
the

tl-JJ

fJist ofr securities selected for
possible long-term growth of

Mr.

E——

Sherry's" Restaurant,
St., -Philadelphia.
Mickley's subj eet will be
Qut)ook for the Fconomy

securities of

1425 Chestnut

capital and income.

"The

-1

and Interest .Rates."

j Incorporated ]
I

Income Fund

A mutual fund investing in

list of securities for current

trates

its

-outeide

A prospectus on

each

fund is available from

ican

investments

American

«4 W«|l

Please segd me, without obligation,

Business hares
S

FRANKLIN CUSTODIAN FUNDS, INC.

A -Balanced investment Fund

Yoi*5.V.
*

the Prospectus and other, infor-

The

dealer.

The Parker Corporation

]mation concerning the Franklin Cust$jian Funds.
'

;

-rrr-r

—

200 Berkeley Street
ADDRESS

Boston, Mass.-

crrr.

invests in a .oprtfpUjp baI-<
bonds "and jgrpterred stocks
pinkllU..
1
stability, and
stocks,
selectedforgrdwfh "possibilities.

anced 'between

I
i

fnv

for

-Prospectus

upon

■

-j

request

rm_ZONB_

Company

ol
a«I
selected
C

your investment

jrr^iriL

Lwbii, Ahbjkjt & Co.

New York

—-

the

securities of companies
^organized
in, Canada which, in the

judgment

industry.

the

The Fund concen¬

income.

sources

jMutusd Fijnds seekiii|;
possible growth and income Jhropgh investipent in Amer¬

J
J

issuers deriving their

from

United States.

jpind out now jtboqt thii serjep

Investment *C6ftf--

In his letter of ti^naTfittal to ;

1956—three years ahead of

past 15 years—-at a
equal to the rate of growth of JBiyi—-the premier growth stock.

members
Mr.

has been remarkably constant for. the
rate exceeding 20% a year. That is just about

investment

panies, in the I95^85?E^)bict ito? 4>ating in the
members mailed Oct.-23; ? r

"Mutual fund growth

end

ng Olfered on

ConlijAuoiJS Basis

Welch, President, National As¬

"Just four years ago in the 1954 edition of our 'Investment«f
Companies' book we forecast $lp billion of assets by 1960,'[ Mr. .:
Wiesenberger recalled. "Many observers thought we werd .'unreal- ?•;;
or

Be i

year-end Sept. '30, it
predicted by ^d$eph

sociation

statements.

jstic'

ins tuu clonal

of mufuaT'funds"
-

prospects for mutual funds.",,

Scmjder Shares

fiscal

was

companies may top 3;500,000 by
1965, fcompared with 1,700^900:

quarter

closed

and

per

and

shareholders

V
'v '
"Impressive as the growth of investment:
companies has been, it is only the barest be- ;:
ginning of what has become America-s fastest; i
growing investment method." Public aware- .

of Sept. 30. The net asset ,value
share increased from $8.49 at
end of 1957 to $11.17 as of the end

Individual

and

Shareholders

industry beg^n its present period of growth,"
partner of the New Yprk Stock
Exchange finp of Arthur Wiesenberger & fco. v.Speaking at The Barbison Plaza at a din- r
ner meeting
honoring leading salesman oiS In- ' *
vestors
Planning Corporation of America's ;
2,600-raan mutual fund retail organization;*:hei

outstanding increased from 1,792,986 at the end of 1957 to 2,483,984

the upward trend of stock prices.
We confidently
environment that will generate more and more income

Predicts 3.5 Million
Jby 1355

times .more than it was in 1940 when

said the senior

The total number of shares

and therefore create

as of Sept. 30 was $27,744,983 as
against $15,231,324 for Dec. 31,

1957.

expect

Arthur

The total asset value of the fund

forestall

"$40 Billion in Assets and 5 Million Shareholders"

and 40

Thursday, October 23, 1058

vintage.

By ROBERT R. RICH

but dull and because market con¬

"True, no one wants inflation, but how to avoid it and still
accomplish the dedicated aims of the Welfare State' is the $64 bil¬
lion question to which no one has yet found an answer. We see
nothing on the horizon to hold back the expansion of our economy

In the

quarterly report ending
Sept. 30, 1958, Jack Dreyfus, Pres¬
ident of Dreyfus Fund, commented
that today's markets are anything

"They will be pRoxWd in due ?
course," he said, "by the rank and -file and. we , will see a stock :
market that may dwarf in volume and vigor
anything of recent ;,

Dreyfus Fund
Assets Nearly

Chieagp

-•

Atlanta

—-

J^»s Aagf^es

''a

Volume

q-f

183

Number 5788

The Commercial and Financial Chroriicle

t^e m^x^agement - of the. Fund,;
reflect

will"

the

(1703)

£xpects Economy Will Set New Highs in 1960

development^

J?*16 American

Ganadiaoindustriesand resources.-^

willreach

economy

highs, not only next

new

' ; x

Forecasts New

The Fund has

'accumulating
(after * payment
all interest, dividends - and'; other.

vesting's net assets at Sept 30, as
compared with 76.7% at the start

Commonwealth

«*• r

income

some time, Hilton H.
• declared.
"Instead,
the fastest business recoveries on

record."
.

------

siriceits organization^distributed
its shareholders any such -in-

lit-i

have

experienced

one

J?* '• *• >

-;~t -

7* v

and

vorr gams;

;

with^new

<noi£e anticipates continuation
Commonwealth mutual funds,

Z,T< Mr. Slay ton spoke at the La Salle Hotel before a group of
Chicago investment executives and sales representatives,

^;toId theip uthal: virtually every major, segment of the
c«n^uJiDS "> its vigorous current
continue this policy.- '-.• •.. .:•«(•
rSc'^,T[ an<'JJrlSi,t,1Euture prospects. . ■ ,,
;
As a non-resident-owned Canartea^ed-fantl,aU;time- high annuai
dian* CH>rpoFatioif;.h€lv4tig"no-Hax-';*'l:*!?Y
J10^' isst August,-, despite theuirop in wages and
aWe IncXffiEfoin United States
and djstoh^w mdustne^ "By early
sources, thtr Fund is not subject
he. 2^,'- lt-Sli°Ul« attain a r?Cord annual rate of $365
come

the :

"tteikuna^o -C^

p^k"intlhtion

Recent

^ gr°^th
industry has

••

States- -Federal

United.

billion

Qr.. $1

Income*1

day.

*">'■<

elected

be taxed

bf~T5%

the

demahd^hd^: held hp ;well. Retail and
Cariada-«#■have been picking up- gradually since March,
;of

of its Taxable

likely

cyclical

business

™"S-tS

mimon
r^n-rifl

TTnder-«Pw«af

^ove

the

ahead

for

1959

was

stocks

common

disposition ri of- his V shares

and mbn-durables sharing in the rise. The increase

at r a:

ld^1*'

lilf*

*-3

r-»

iK,v»^"\*';irT,S

t-v

<■

rendition*? thpv will

gam ratner t -an

fanitnl

ord-mary ineome^-. t^g

that

FuiidameiitalAssets

$123 Million
vF.undamentsl

would mark

this

earlier turn in

key

'■■■?.•':;>-'Noting;''that business
much "slower

-Inc.j

rate"

than

postwar recessiohs.'V ^
inventories are being trimmed

earlier in

the

mark.

the

26th

manreported,one

Eliminations

from

stock

common

the

Fund's

portfolio

were

fund,Com- made through the sale of Memonwealth
Income
Fund,
had Kesson & Robbins; Arizona Pubbeen
successfully added to the lie Service; U. S. Rubber; AmesriCommonweaUh family. The shares can
Cyanamid; and Olin Mathieson

"at

Within the past year, Mr. Cole-

and that inventory;

year,,

Insurance. Holdings increased
were U. S. Pipe and
Foundry; Re¬
manage- public Steel; Lockheed Aircraft;
as-

and oldest balanced mutual funds.

sector

thah lft either of the two earlier

Higher

lnyestors;

this

topped the Maytag; Mississippi River Fuel;
Sept.
20 United Aircraft; Pioneer Natural
birthday of the Gas; Deere & Co.; McGraw Ediformation
in
San
Francisco
of son; Warner Lambert PharmaceuCommonwealth Investment Comtical; International Paper; and
pany, one of the nation's largest Marquette Cement.
■

$150,000,000

Most economists," he said, "had expected
to a halt.-"M
expenditures would not turn upward until'well into
the--upward turn comes in- the fourth quarter, as now

1959." If

supervised

marked

come
such

predicted,

the purchase of General Motors;
standard Oil (Ohio); Allied Chemical; Granite City Steel; Dresser
industries; and American Re-

sets

taxrates.,;!-.^-v . $^<},,,-^'has

longer

New common stock investment
positions were established through

a n

ment organization have

*v/\

ypth ability and willingness:to spend.
Mr. Slayton termed "particularly encouraging-'; evidence that
^ Sla^orl termed-:"—iw
sharp decline in bu
business outlays iifor plant and'; equipment

reason*

in indi-

4l"i

sa!f'at°noe ofc^f four-day North
Securities Company

Mr. Coleman announced the

and^feeept^nnder;; certaimSWfU,Ure givC

pmfitr

riotri M'ffri

believed

Lewis V. Cole- ably priced in relation
Vice-President in charge of term prospects."

•••-

the

sideration also has been given to

view

idl!n Sef10nS !°f- s f1roup
?* ^nal representatives flown
^om New York, Washington,
AnSiA^
Houston and Los

P^k Established l2 months earlier.
\
;••...••
laws- the obiv United States; ta^-v ;
su,?er buying in the jaggregate;;appears to be headed
is
for't 1^cord fourth quarter," Mr. Slay ton said, "with both dur1S that V wh iefr^ he oavs unon-ther Which he» pays-upon the
in

tnvfld

recovery,"

chairman further stated, Mand eon*

man,

favored

comoanies "Which

voiced Sept. 20 by

non durable consumer goods reaching an annuai

have

seemed

experienced during the past dec*

This

purchases

Mr.

mo^ylnd^h"^

equities

at the mutual fund

'■Ta^consumer

fH^anQger^ an $eeds fron* the reduction of hohJk1^5i9 nthe
San Fran- |ngs 0f fixed-income securities.

According

mon

North American Securities Com.

Slayton; ^ President of Managed Funds, Inc.,

assets and" ail gains derived
from the disposition: of portfolio
securities.The" Fund
has
not,

f olio

year.

gain in the market value of goifr*
stock investments and
pur-

Fiind Records
business would "blimp along on bottom-' for

the

Randolph, "this increase reflected

one

mdn

assets.

19d8

the

1958

fiscal

This

year.

with $334,501,287

pares

1957.
'

•

**.

* '•

'• ...i "-r

production, which suffered its
of World War II, is undergoing

end

Broad St.

He said the most noteworthy aspect of
has been its broad, scale, with every major industry
covered by the Federal Reserve Index having increased output
since last Spring's low point. -.V
v
:

same period, net asset
share rose.27%, from
to " $17.
The number of

industrial

its ^sharpest recovery."

shareholders increased from 90,593

Achieves 30% Gain

' According to fund executive, the current lag in reemployment
is: typical of the early stages i;of recovery. He added, however,
that its impact on the economy, has been minimized by increases
In commenting on the substan-1'in
wage rates, hours Iworked; and unemployment and pension
tial improvement in "the nation's
benefits.
r .*
* V
*'.r/'T
to

outstanding

Qfi 24ft-

55 017 8ftQ

frnm

rose'

3fi Qftft 447

irom,ZD,ui /,«uyto

•

the fund's ; 103rd report "
to. shareholders points up the fact •
eOonomy;

result of greater operating

efficiency and its huge postwar capital investment, industry'is in ^am, excellent position" for
t'hat -.uncertainties "still
exist.
rapid expansion of its profit margins, Mr. Slayton said, adding:
Signed by Wm.. Gage Brady, Jr.,
"It appears that the level of profits will approach the peak
Chairman
and - Hugh >-W.
Long,:
reached in the first quarter of 1957,;and that corporate profits
President, the report states.
For f;; jn 1959 may well reach new record ^levels."
.1..
instance, futuie^,;business trends
Summing up, Mr. glayton said: "The key sectors of the
will
be*• sensitive
notcvonly 'to
economy are experiencing a vigorous recovery. Overall industrial
changes, in the international sit¬
production has rebounded sharply from its April low. The expan¬
uation, .but also to developments r
sion of * government spending, ^rising wage - rates and pension
in the automobile industry, par¬
benefits sustained personal income.-Mounting, retail sales reflect
ticularly the. public's reception of
toe rise in personal income.
The toigh rate of consumption has
the new, models, and to .any furreduced inventories to a sound-level.'
-

imposed by^.

then credit restraints

"Cessation

and
can
significantly affect business
activity, especially in ,the con¬
struction .fields".
t During the three months ended
Sept. 30, the fund added the com-

inventory liquidation, andthe end of the
capital expenditures " in themselves provide strong
stimuli to the economy. As a result of depleted inventories, the
recent rise in manufacturer's new orders is quickly resulting in
higher production.
y;
"Today's surplus capacity does not seem large in relation to
anticipated demand.. Industrial production should reach its pre¬
vious high no later than the middle of next year.
"1959 should be a record year."

Reserve.. Such re¬
straints and other similar steps
considered desirable by,- govern.-,
mental authorities influence the
Federal

too

...

decline

availability and cost of credit,

—:

—

—
-

il
Oil

Company

list of;

to its

holdings

c^g£

A /,m|JrAfi

After

Plans Increase
-

*■Securities

Mutual'

Fund

Corporation valued

Qr»ri

"Gf

y A 38.3% yisein the numbef of nounced t
mutual fund contractual Executive
rilans durihe the -12 months end-...
Selected

stock,

was

an-

Se-

iqc7

1957,
is a

rpnrpsAnt^

Broad Street

vesting Corporation

rose

In¬

high of $123,396,577 at
Sept. 30, it was announced by
Francis F. Randolph, Chairman of
the

board

and

represented

President.

gain

This

of ovetf

30%

from

$94,805,240 at the outset of
the year and compared with $112,440,757

June 30.
During the
months, investors increased their holdings in Broad
Street Investing by
$7,546,939.
first

during

445%

fnr

the

& alter
share;

per

train

nnnitni

first

nine

adjusting

Total net assets of Carriers and

^^^eral .COTporation at Sept. 39,
1958, with securities

valued M
market, quotations and before de¬
duction of principal amount of

Outstanding

debentures,

$18,121,638.

efre

Net asset value of the

common

stock was $28.96 on Sept. 39, 195$,
compared wito $23.27 at share on,
Pec- 31, 1957.
,

asset coverage per $1,606
to $23.90 at the end of the third debentures outstanding oiy Sept.
quarter, a record reported high 30» I953, amounted
$9,680. Infor
the
29-year old diversified terest requirements on debentures
fund of the Broad Street

Mutual

Funds.

This

Group of
21%

was

higher than the $19.69 at the beginning of the year and was up
from $22.31 three months earlier.
The

dividend

cents

per

share paid on Sept. 30 was Broad
Street In vesting's 115 th consecutive quarterly payment, according to Mr. Randolph. This brought

outstanding

were

earned

7.91

times during the first nine months
°fl 1958. Net income applicable to
common stock for the nine months
ended Sept. 30, 1958 (exclusive of
Profits on sales of securities) was
$310,966..
-

iVatlOliarft
» OllctI C

payments for the first nine

share.

1958

This total

cents

per

unchanged

was

1957, but income was 2.4% higher
for those shareholders who mair

Ranald

Macdonald,

Pfesi-

■•ent of Nati°n?ishares
tion, announced that total

net

as-

tained their investment in Broad

were $25,547,909 or $23.66 a shaft
gtreet Investing by taking addi- at Sept. 30, 1958, after deducting
of a™* qn iq^q
tional snares in payment of th© 3 dividend of 12 cents 3 share
.

investments.

situXT Mr®

in-

distributions,

Substantial Gain
In Share Value

Asset value per share increased

91/2

net asset

^a™rs Reports

new

all-time

increase^ih tiie'sfze of the-Pimd «»' o^TnvestaentT "**

mu--Value

capital

ai
with $63,948,706 at npp 01
Dec.^31,
Mr.
Schimpff said.
This

Inc

y WOSiJfaifyihe Issuance
236 413 shares of American

.tual

acquisition

f
ofb=

has acquired the assets of Selected

Contractual

.the

Acquires Another,
ZrPZCIo8<m1-E.k1 Fund
American

I.P.C.

assets

months

folio.

Net

total

Mutual
nent

Investing

the recovery

per

$'1'3.37

Slayton said

sharpest decline since the
.■

Over the

value

occur.'

"Mr.

•

tion will

com¬

Dec. 31,

of the previous quarter aiylune

Randobh

1 e reccsswn ran its

or ^1-67 a share.

$23,401,052
;

The

its active

»•

;

ing Sept; 39 was
9estors Plaitning

At the

ceived by

that.the
had

tives
sales

increased third-quarter
2.3%

volume

The number

force at the

tailed
998

",*

to-

compared with 37,a

Three-quarter

year

Sales

17,683^75, compared

amounted
*i7

with,$17,-

^on

securities business.

Officers

are

S®"

—.—

vtonf'%
tn

^fp

Treasurer.

ci0sed-end

aequisi-

investment

which American Mutual
the

Fund

having

com-

significant

With

Bingham, Walter

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Robert

"le^Ta simnar"aftanVementTast
^pril in which the assets of Bar-

E. Horton is now'with Bingham,
Walter & Hurry, Inc., 621 South

Investment Company, valued

the

at $3,783,391. were acquired.

—j--

Street, members of t
Pacific Coast Stock Exchange.

Spring

demonstration

UIVW

$156,486

1958' comP*r™* with
or 14.5 cents a share for
quarter, and realized

qn investments for the

three months' period of $352,069
or 32.6 cents
a sh
c<Mnp5ed
with

$126,200 of 11.7 cents
ghare for the prior quarter,

un¬

derlying

strength and stability,
preservation of consumer
and corporate confidence and the
course of business activity in the
and

—»

mei^s of $146,271 or 13.5 cents a
share for the three monthsen^d

yet to be settled, and the re- ^ prfor
®?arp rfu11"^om0n^„S net gain

Porter M. Strickland, President;
w
J!!."
fluence. Yet," added Mr Randolph
shareholders Ulys G. Anderson, Vice-President;
"it seems safe to say that in 1958
liquidate 1 ap- and Francis J. Dwyer, Secretary- to date the economy has
given a
\
-

Fund has made in the past six

eco

1™vP4

in nave

engage

of a prolonged bottoming

the latter's

company

months,

ago.

j■—J4.U-

285.763 last year. -

This is the second such

of L P. C. plans in

Sept. 30

rata

Fund tre-, states Life Building to

Selected Securities Cordistributed .pro

proved by them.

Mutual

last under a plan of

over

end of last month

52 558,

^OOO-represent^-,.porati0n.-will-:be

firms

year's like period.
-

American

dent

i/y,.,

;fS;n^^-.4i«r.wri' of
Walter Benecf C

;

:
t^
umarily of common stocks a n d;States'AJnderwriters, Inc. has been
s^pae time, UP. C. Presi-' U. S. Treasury bills. The shares formed with offices in the Gulf

America.^'
'

oecurmesi-orporaiion

reported by^to- is- a closed-end investment^ com- ri rflulf States:«Ufiaerwr)ter*
the mt
Corporation, of > pany whose assets consist pri-.^B IRMING HAM, Ala.—Gulf 2r Lio

the

Toboco Adds to Staff
(special to the financial chronicle)
BEVERLY HILLS, Cal.—Robert

third post-war recession have J. King has been added to the
been impressive."
staff of Toboco & Co^, Inc* 92$5
Common
up

stock holdings made
about 83% of Broad Street In-

Wllshlre Boulevard, members of
the Pacific Coast Stock Exchange.

The Commercial and Financial Chronicle

(1704)

Thursday, October 23, 1958

AD DITION S

* IN DICATE8
SINCE

Securities Now in

American Box Board Co.

Sept; 11 filed 49,732 shares of common stock (par $1) be¬
ing offered in exchange for Wolverine Carton Co. com¬
mon stock at the rate of two shares of American for each

Calidyne Co., Inc., Winchester, Mass.

The offer is subject to acceptance

(N.

which notes were assumed by the
Dec. 3x, 1957. The notes are Convertible at
any time after July 1, 1958, until the maturity or prioi
redemption of the notes at a conversion price of $4 pei
share.

Y.j

the rate of

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20

■?

ft Atlantic Ocean Estates, Inc.
(letter of notification) 22,000 shares of $1 par
(offer to be amended as this amount ex¬
ceeds the ceiling). Price—$25 per share. Proceeds-r-For
general corporate purposes and i)n the normal operations

jr Automation Instruments, Inc.
Oct.

(letter of notification)

•

15-year

convertible: sinking fund debentures to be offered for
subscription by stockholders of record Oct. 1, 1958. Un¬
subscribed shares to public. Price—90% of face amount;
(in denominations of $10Q, $500 and $1,000 each). Proceeds—To retire notes payable to bank and others and
for working capital.
Office—401 £. Green Street, Pasa-;
(Lena, Calif, Underwriter—None.
'*

Oct. 16 filed 250,000 shades of common stock (par $2.50).
IPrice—-$5 per share. Proceeds—To increase capital and

Surplus: Office—-Atlanta, Ga. -.Underwriter—None. '•
Bankers FidelityLifelnsuranceCe.

Feb. 23 filed 258,740 shares of

common stock (par $1),
125,000 shares are to be offered publicly and
133,743 shares to employees pursuant Jo, stock purchase
.options. Price—To public, $6 per', share. Proceeds—Foi

of Which

tanta, Ga
,

,
^

£>

Underwriter—None.

purposes.

Office—At-

•

® Bankers Management Corp.

(11/14)

^eb. 10 filed 400,000 shares of common stock (par 23
-cents.) Price—$1 per share. Proceeds—To reduce out-

standing- indebtedness and for-working capital. Office—
.^louston. Texas. Underwriter'— McDonald, Holman &
Co., Inc., New York.
Bankers Southern, Inc..

April 14 filed 8,934' shares of common stock. Price—At
($100. per share). proceeds—For general corporate
Underwriter — Bankers Bond Co., Louisville, By,
••
par

purposes

Corp.,

St.

—

Cuban-Venezuelan Oil Voting Trusts,
„

Havana, Cuba

March 31 filed 767,838 units of voting trust certificates,
each certificate representing the ownership of one share '
of common stock (par one-half cent) in each of 24
Cuban
ment.

companies.

Price—To be supplied by amend*

Proceeds—'Far

capital expenditures, exploration

costs and other corporate purposes.

Underwriter—None.

it Dalto Corp.
Oct. 10 (letter of

stock.

cover

notification) 155,000 shares of common

Price—At par ($1 per share).
Proceeds—To
the cost of three Dalto Simulators to be manufac¬

tured

by Doman Helicopters, Inc., and for interim ^Op¬
erating expenses. Office—New York, N. Y. Underwriter
—None.

■

Dereon Mines Ltd.
June 5 filed 350,000 shares :of common stock.

Price—At par. Proceeds—For working capital. Office—
531 11th Street, Douglas, Ariz. Underwriter—None.

Chock Full O' Nuts Corp., New

York
;

•A Domarth-Finance & Investment Corp. •
Oct. 7 (letter of notification) 50,000 shares of common
stock (par $1). Price—$6 per share. Proceeds—To ex¬
pand loan business and purchase and open additional
office.
Office-—113 Hightower Street, Thomaston, Ga.

Underwriter^—None.

40,000 shares to officers and-employees. Price-To be
supplied by amendment. Proceeds — To selling stock¬
holder; Underwriter—F. Eberstadt & Co., New York.
.

•

;

Clary Corp.'
cAug.' 2.7 (letter of notification) 75,000 shares of common
stock (par $1) to. be offered for subscription by common
stockholders of record Oct; 15, 1958 on the basis of one
new share for each 12 shares held; (with an oversubscrip¬
tion privilege); rights to expire on Nov. 7. Price—$4 per
share. Proceeds—For working capital. Office—408 Junipero St., San Gabriel,, Calif. Underwriter—None.

Corp.

tPuffy Mod Co., Incy Nwf York

»: #" r

Oct. 3 filed 228^950 .shares of common stock

Aug. 21 (letter of notification) -300,000 shares of common
stock (par one cent). Price—$1-per share. Proceeds—To
pay additional costs of construction; and for retirement
of obligations and working capital. Office — c/o John
Harlan Loweli, 2200 Kenton. Aurora. Colo. Underwriter
—Lowell,'Murphy &; Co:; Inc^ Denver, Colo.

fv~.

/Bow Chemical Co., Midland, Mich.
y
Sept. li filed 175,000 shares of,common stock (par $5)
being offered: to employees of the «nnpany, its subsidi¬
aries, and certain associated-companies at $55.75 per
share; subscriptions < will be accepted - from Oct. 13
\ through Oct. 31. By a separate
regi^rationvstatemeift the
company plans to offer 12,500- additional shares of the
said stock to employees; of Dow Corning Corp., a "50%
owned subsidiary of the corporation.
"

Cinemark l I

Productions, Inc.
June 30 (letter of notification) 300,000 shares of ^common
stock (par 10 cents), Price—$1.per share. Proceeds-*
For working capital. Office — 937 Acequia Madre Rd
Santa Fe, N. M. Underwriter—Watson & Co., Santa Fe.

Price—$1

share. Proceeds—For new equipment,repayment of.
loan, acquisition of properties under option, and, other
Corporate purposes. Officer-Toronto, Chnada,. and Em*
oorium, Pa. Underwriter—None.
per

Oct. 3 filed 440,000 outstanding shares of common stock,
of which 400,000 shares are to be offered publicly and

Clute

Sales

Research

For repayment of loan; purchase of plant and
equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
11740 Broadway, Denver, Colo. Underwriter—L. A. Huey,
Denver, Colo.

(letter of notification) 27,000 shares of common
(par $1), 730 shares of 6% non-voting preferred
stock (par $100) and $200,000 of certificates: of invest¬
ment to be offered in denominations of $25 to $10,806.'

Counselors

office

N. M.

—

Robert H. Green is President.

Offering—Expected today (Oct. 23).

>Jr Autosurance Co. of America

(expansion and other corporate

ceeds

both of New York.

stock

$250,000 of

filed

City Loan & finance Co.
Oct;

Office—2309 Mt. Vernon Avenue, Al-

Underwriter—None.u'v'"

Research Fund, Inc., St. Louis, Mo«
100,000 shares of capital stock, (par one
Price—At market.
Proceeds—For investment.

filed

Cryogenic Engineering Co.
Sept. 22 (letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬

Central

common stock

Underwriter

'ork.
'
fiil§9n Corp. and P. W. Brooks & Co., Inc., both of New

Oct. 3

cxandria, Va;

cent).

'Chemirad'Corp., East Brunswick, N. J. (11/5)
Sept. 25 filed 165,830 shares of common stock (par 10
-cents) to be offered for subscription by holders of com¬
mon stock of Cary Chemicals Inc. at the rate of one share
for every tour shares of Cary Chemicals common stock
held; with a 21-day standby. Price—$2 per share. Pro¬
ceeds—For expansion program. Underwriters—Lee Hig-

.£7701 North Broadway, P. O. Box 994. Oklahoma City,

Cf the company.

Feb.

•

working capital. Office
*

■

Charles Town Racing Association, Inc.

Underwriter—

Power Co.

Counselors

Sept. 9 filed 4,000,000 shares of common stock (par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell sueh shares at the market. Price—60
cents per share. Proceeds — For construction of racing
plant and acquisition of equipment. Office—Charlestown, W. Va. Underwriter—None.

stock.
Proceeds—For invest¬

■

Soya Co., Inc. (10/28)
200,000 additional shares of common stock
(no par). Price—To be supplied by amendment. Pro¬
ceeds—For working capital. Underwriters — Goldman,

phare and expected to average $225 per share). Proceeds
—For opening,-equipping and
stocking new stores; pur-

....

Consumers

Sachs & Co., and Blyth & Co., Inc.,

At market.

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term bank loans and for expansion and im¬
provement of service facilities. Underwriter — Morgan
Stanley & Co., New York. Offering—Postponed indefinitely.
■
■
■

Co.

/.■■

—

Proceeds —To stockholders wishing to receive cash in¬
stead of stock. Underwriters — The First Boston Corp. '
and Glore, Forgan & Co., both of New York.

Louis.

•

ik Anthony (C. R.) Co.
16 .(letter of notification)
1,250 shares of class B
%ion-voting common stock (par $100) to be offered to
employees. Price—At book value (currently $211.10 per

-IJnderWTitef—None.

I.)

share for each 50 shares held. Price

one

machinery, etc. Underwriters—Morgan
Stanley & Co. and Clark, Dodge & Co., both of New

Oct.

A., Inc., Phoenix, Ariz.
85,000 shares of common

stock and for

in connection with

York.

St. Loius, Mo. —

Oct. 8 filed

Laboratories, Inc., Metairie

(J.

New

• Commonwealth Edison Co. (10/28)
100,000 shares of common stock, to be issued
a 2% stock dividend payable Nov. 1, •'«
1958 to stockholders of record Sept. 22, 1958 at rate of

;

Business—Farm

Chase of Stores

construct refinery. Underwriter—Lehman Brothers,
York. Offering—Indefinite.

Oct. 30, 1958. Price—At 100% of principal amount.
Proceeds—To reduce short-term indebtedness to banks.

Oct.

held

Price—$7.50

Angelica Uniform Co., St. Louis, Mo. (10/30)
Oct. 6 filed 150,000 shares of outstanding common stock,
IPriee—To be supplied by amendment
(expected at $10
per share). Proceeds — To selling stockholders. Under¬
writers—Scherck, Richter Co., and Dempsey-Tegeler &

^Selected Securities, Inc., Phoenix, Ariz.

10 shares

Sept. 26 filed $20,130,000 of 5%% debentures due 1983
(convertible into common stock until Oct. 15, 1968), be¬
ing offered for subscription by common stockholders of
record on Oct. 14, 1958, on the basis of $100 of deben¬
tures for each 14 common shares held; rights to expire

Ampal-American Israel Corp., New York
Aug. 8 filed $3,289,100 of 10-year discount convertible
debentures, series & Price—61.027% of principal amount,
payable in cash or in State of Israel Independence Issue
or Development Issue
bonds.
Proceeds—For develop¬
ment and expansion of agricultural, industrial and com♦mercial enterprises in Israel. Underwriter—None.

ment in subsidiary and working capital.

share for each

of stock and $100 of debentures
nine shares of stock.
Price—To be supplied by ameitwaienL Proceeds — To

(New Orleans), La.

Case

—Formerly United States Telemail Service, Inc.

filed

writer—None.

purposes
Office—Salt Lake City. Utah
Underwriter
Amos Treat & Co., Inc., of New York. Change in Name

1957,

new

'■}::

16,1957 filed $25,000,000 of first- mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures duo
Oct. 1, 1963 and 3,000,000 shares >1 common stock to be
offered in units as follows: $l,00o of bonds and 43 shares

July 2 filed 600,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For expansion,
working capital and other corporate purposes. Under¬

American Telemail Service, Inc.
17 filed 375,000 shares of common stock (par $1>.
Price—$4 per share. Proceeds—To purchase equipment
and supplies and for working capital and other corporate

30,

one

Carrtone

Feb.

Anita Cobre O. S.

Commerce- Oil Refining Corp.

share. Proceeds — For general corporate purposes.
Underwriter—Ladenburg, Thalmann & Co., New York.

—

Frice—At par ($3.75 per share).

per

share. Proceeds—For investment in first trust notes,
eecond trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg.,. Washington,
S3, C. Underwriter
None.
Sheldon Magazine, 1201
highland Drive, Silver Spring, Md., is President,

15ept.

•

Get. 14, 1958; rights to expire on Oct. 28.

g>er

'JCoif^e^S bi

Underwriter—None.

filed

Dec.

Canal-Randolph Corp., Chicago, III.
Sept. 22 filed 91,662 shares of common stock (par $1) be¬
ing offered for subscription by common stockholders at

Un¬

ag¬

company

derwriters—To be named by amendment.

$1)

limited partnership,

Feb. 28 filed 500,000 shares of common slock (par 200).
Price—To be supplied by amendment. Proceeds — To

discharge current liabilities and. to drill ten wells.

(11/6),
$25,000,000 of debentures, series K, due
1983.
Proceeds—For acquisition of Gulf Interstate: (las
Co. and for construction, program. Underwriter—To be
determined by competitive bidding.
Probable bidders:;
Halsey, Stuart & CO. Inc.- Morgan Stanley & Co.; Merrill
Lynch, Pierce,- Fenner & Smith and White, Weld & Co.
(jointly). Bids—Tentatively expected Jo be received by
company up to noon (EST) on Nov. 6.;;.
\
./

gregate principal amount of $923,500 of 13-year 3% con¬
vertible subordinated income notes of the Calidyne Co.,

(23,623 shares) of Wolverine common
«5tock: however. American may declare offer effective
Whenever it has been accepted by not less than 80%
<19,983 shares) of the outstanding Wolverine common
etock. The offer will expire at 4 p.m. (EST) on Oct. 27.
by at least 95%

American-Caribbean Oil Co*

Columbia Gas System, Inc.

Oct.

;

June 4 filed 230,875 shares of common stock (par
shares are issuable upon conversion of an

Colonial Aircraft Corp., Saitford, Me.
8 filed 346,492 shares of common stock

(par 10
Price—75 cents per share. Proceeds—To reduce
loans, make certain capital improvements and for work¬
ing capital. Underwriter—Mallory Securities, Inc., New
York.
Offering—Expected in November. :

Co., New York.

These

ISSUE

REVISED

cents).

purchase warrants, one warrant to expire 18 months
thereof, exercisable at $3.25 per share, and
one warrant to expire 30 months from the date thereof,
exercisable at $3.50 per share. Priee—$3 per unit. Pro¬
ceeds—-For working capital. Underwriter—Charles Plohn

ITEMS

Oct.

from the date

30, 1958; rights expire on Nov. 17. Price
—-$6.25 per share to shareholders, and $7.50 for any un¬
subscribed shares. Proceeds—For working capital and
of record June

Underwriter—None.

•

(10/30)

Sept. 11 filed 450,000 units, each consisting of one share
of common stock (par 10 cents) and two common stock

June 30 filed 315,000

general corporate purposes.

Bowling Corp. of America

•

Acme United Life Insurance Co*, Atlanta, Qa.
shares of common stock (par $1)
being offered for subscription by common stockholders
et the rate of three new shares for each two shares held

•

(par.$100)

of: which 108,950 shares will be sold for account of esH-*
-

ing stockholders. .Price—'To^^-be supplied by amendment
Proceeds—To ^provide added working capital to carryincreased

inventories

and

receivables.

Business.—

"Mott's" apple products, "Sunsweet" pruae
juice, and "Clappbaby foods. Underwriter—Kiddery
Peabody & Co., New York. Offering—Expected today
(Oct. 23).
processor ;of

Eastern Stainless Steel Corp.

(10/26)

Oct. 6 filed $5,123,600 of convertible subordinated deben¬
tures due Nov. 15, 1973, to be-offered initially to stock¬

holders

the basis of $100

principal amount, of debenr

tures for each 14 shares of common stock held about
Oct. 28» 1958; Tights to expire about Nov. 12.' Price—To

Volume 188

Number 5788

The Commercial and Financial Chronicle

be supplied by amendment. Proceeds
other funds, will be used to retire

—

Together with

Florida

approximately $4,000,§00 of 41/2% notes, to increase plant
facilities,. and to
finance additional inventories. Underwriter—Hornblower
& Weeks, New York.
>.
\

(1705)

Power & Light Co.

Oct. 6 filed 300,000 shares of
:

Fenner

Smith

Ethodont

Underwriter—Bateman,

•

Laboratories, Berkeley, Calif.

Feb. 20 filed
At par

•
-

Co., Los Angeles, Calif.
300,000 shares of

($5 per share).

common

Proceeds—-To

Price—

stock.

cover

selling stockholders.
~• </:

;

Underwriter
;

Blvd., Los Angeles, Calif. Underwriter—Oscar G.
Co., Pasadena, Calif.
i SV/7:7

•/••

A stock (lie

common

B stock

(par $1)

holders at the rate of

Oct. 31,
To be

—

October 24

Attorney General of the United States.
Underwriter—To be determined by
competitive bidding
Probable bidders: Blyth & Co.,
Inc., and The First Bos¬
■

ton • Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received
up to 3:45 pjn. (EDT) on

(Friday)

October 27

Co.,

Inc.)

(Milton D.

Tenney Engineering,

Co.,

Inc.)

October 28

(.Goldman, Sachs &

and

(The First Boston Corp.

Blyth

Co.

(

(Merrill Lynch,
i,}

(Willis; E.

Burnside

Montreal (City of)
(Bids to be

Co.,

Inc.)

invited)

•

(Bids

(Kuhn,

Debentures

(Bids

October 29

Clearing Agent—Merrill
Lynch, Pierce, Fenner & Smith, New York.,,; 77 7 7 .1

i-7-Glidden Co.•;< 10/29)

Glidden Co
.

Corp.;

Pacific

(Bidfc

Co.;

and

Chas.

$18,000,000

Co.)

(Bids

$5,000,000

Harvester

Stanley & Co.;

(Morgan

William

Perrine

Credit

Blair

Glore,

Co.)

Corp

Forgan & Co.;
$50,000,000

Puget Sound Power & Light Co
EDT)

100,000

Co.)

' ?

Equip. Trust Ctfs.

be received)

Holman

(Thursday)
$5,310,000

Great American

■

'-'T.-

"•

Guardian Insurance Corp., Baltimore, Md.
Aug. 16, 1957, filed 300,000 shares of common stock, oft
which 200,000 shares are to be publicly offered and the
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which

.,7

organizers,
incorporators,
management^
and/or directors. Price—$10 per share. Proceeds—For
•'

Inc.)

Bros.

mon

Electric
(Bids

to be

Debentures

(Tuesday)
Bonds
•

and Eastman Dillon, Union Se¬
(jointly). Bids—Had been expected to bo
Sept. 15, but has been indefinitely post¬

★ Hanna Mining Co., Cleveland, Ohio (11/7)
17 filed 313,038 shares of common stock to be pfby company's shareholders (other
Co., the parent), and by the stock¬
holders of the latter. Of the total, 181,606 shares are to
be offered to shareholders of the parent at the rate of
one share for each 16 shares of the parent's stock held.
The remaining 131,432 shares are to be offered to tho
minority shareholders of the mining company at the?
fered for subscription
than the M. A. Hanna

one

share for each 3.45

supplied by amendment.

shares held.

Price—To-

Proceeds—To reduce bank

indebtedness. Underwriter—None. Present Name—Com¬

now

known

Hanna Coal & Ore Corp.

Electric

Light Co. (10/29)
Oct. 9 filed $18,000,000 first mortgage bonds, 1958 series
E, due Oct. 1, 1988. Price—To be supplied by amend¬
ment. Proceeds—To repay bank loans.
Underwriters—>
The First Boston Corp., New York; Putnum & Co., Hart¬
ford, Conn.; and Chas. W. Scranton & Co., New ITaverr,,
Conn.

Hartford

Electric

Light Co.

(10/29)

Oct. 9 filed 100,000 shares of cumulative preferred stock
ceeds—To
Boston

(Wednesday)
Bonds

Price—To be supplied by amendment. Pro¬
bank loans. Underwriters—The First
New York; Putnam & Co., Hartford,
Conn.; and Chas. W. Scranton & Co., New Haven, Conn.
(par $50).

$70,000,000

(10/29)

Oct. 9 filed 149,633 shares of common stock (par S25) to
be offered for subscription by common stockholders of

(Thursday)
Equip. Trust Ctfs.

received)

repay

Corp.,

Hartford Electric Light Co.

$50,000,000

Norfolk & Western Ry
(Bids

Hutzler

Common

(Tuesday)

invited)

December

Hartford

$80,000,000

$50,000,000

•••

Oct.

$400,000

(Tuesday)

be invited)

Utilities Co.

Aug. 14 filed $17,000,000 of first mortgage Bonds, serieu
A, due 1988. Proceeds—Together with cash on hand, to
redeem and retire $17,000,000 principal amount of 4%%
first mortgage bonds due 1987. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart Sz Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith and White, Weld & Co.
(jointly); Stone & Webster Securities Corp.; and Salo¬

Common
Co.,

invited)

December 10

Philadelphia

to be sold at 25 cents per

are

warrant

record

Oct.

21, 1958 at the rate of one new share for
held; rights to expire on Nov. 17, 19581
amendment. Proceeds—to re¬
pay bank loans and for construction program.
Under¬
writers
Putnam & Co., Hartford, Conn.; Chas. ,W»
Scranton & Co., New Haven, Conn.; and The First Bos¬
ton Corp., New York.
,
each

$6,450,000

10 shares

Price—To be supplied by

Debentures

$15,000,000

—

Tampa
'

Electric

(Stone

Co._

.Preferred

Webster

Securities

October 30

Corp.)

(Thursday)

Angelica Uniform Co
Richter

Co.

Consumers Power Co

and

Dempsey-Tegeler
$1,500,000

Bowling Corp. of America
-(Charles

Plohn

Grace

Line

(Merrill

Jackson

Panama

noon

Gulf States Utilities Co.—,
Laclede Gas Co

$1,350,000

Bonds

(Bids to be Invited)

Equip. Trust Ctfs.

Michigan

CDT) $1,875,000

Bell

Telephone

(Bids

Inc

Bonds

(Bids to be Invited) $17,000,000

Common
Co.)

Chicago & North Western Ry
(Bids

Co.)

Preferred

(Morgan Stanley & Co.) $15,000,000

.Common

;

(Scherck,

Postponed Financing

$10,000,000

Bonds

Lynch, Pierce, Fenner and Smith; Paine, Webber,
Curtis; Smith, Barney & Co.; White, Weld &
Co. and F. Eberstadt &
Co.) $9,000,000

Montana

Power
(Bids

to be invited)

Bonds

to be

invited)

(Lehman

Bonds

Brothers)

$16,700,000

(Kuhn, Loeb & Co. and Lehman Brothers) $24,000,000

(Bids

October 31

(Friday)

Smith)

530,000

to be invited)

Bonds
$8,000,000

Southwestern Bell Telephone Co

General Public Utilities Corp.
Common
(Offering to stockholders—clearing agent is Merrill Lynch,
Pierce, Fenner

Bonds

Pennsylvania Power Co

Debentures

(Bids to be invited) $110,000,000

Utah Power & Light Co
(Bids

be invited)

1
$20,000,000

ing common stock of record Oct. 15,
of

one

new

1958, at the rato

share for each 10 shares then held. Price—

supplied by amendment. Proceeds — To become
part of the general funds of the company and will bo
applied toward the cost of the company's construction
program.

$20,000,000

Moore-McCormack Lines, Inc

Hawaiian Electric Co., Ltd.

Oct. 8 filed 84,750 shares of common stock (par $20) <to
be offered for subscription by holders of its outstand¬

To be

Debentures

$40,000,000

(Republic of)

$10,000,000

Bonds

Underwriter—None.

Hoagland A Dodga Drilling Co.,
June 12 filed 27,000 shares of capital
per share.
Proceeds—To be used In
ploration of mines and development

Inc.
stock. Price—$10
part for the ex¬

and operation o#
Office—Tucson,

mines and in payment of indebtedness.

Ariz.

Realty Corp., N. Y.

Aug. 18 filed 484,000 shares of class A stock (par* 10
cents). Of this stock, the company proposes to offer
400,000 shares and certain selling stockholders 40,009
shares, the remaining 44,000 shares being subject to
option to be offered for the account of the underwriters.
Price—To be supplied by amendment.
Proceeds—For
working capital and other corporate purposes. Under¬
writers—Joseph Mandell Co. and Louis L. Rogers Co.,
both of New York, on a best efforts basis.

rate of

(Friday)

and

Class A common
Plymouth Bond & Share Corp., and
Securities Corp.)
$600,000
noon

?
,

7',,''

(Monday)

(Bids to be received)

_Debens.

Industries, Inc

(Bids

Southern Bell Telephone & Telegraph Co.__Debens.

(Charles Plohn & Co.;

Clayton

December 9

Common

(Offering to
stockholders—underwritten
by
Putnam
&
Co.;
Chas. W. Scranton & Co.; and First Boston Corp.) 149,633 shares

International

$30,000,000

Public Service Electric & Gas Co

Preferred

& Co.)

Loeb

December 2

(First Boston Corp.; Putnam & Co. and Chas. W.

Hartford Electric Light Co

■"7"

supplied by amendment. Proceeds—To re¬
Underwriter — Blyth & Co., Inc.,

bank loans, etc.
New York.
7';7>.7

(May be Merrill Lynch, Pierce, Fenner & Smith) 700,000 ihares

Hartford Electric Light Co
Scranton

Inc.)

Pacific Gas & Electric Co
Bonds

Putnam

-'V,'7"!

poned.

Bonds

Telephone & Telegraph Co

Debentures

Hartford Electric Light Co
Scranton

(McDonald,

Hornblower

—

(First'Boston

Co.

November 18

-(Blyth & Co., Inc.) $30,000,000

Oct. 7 filed $30,000,000 sinking fund debentures due 1983.

pany

Debentures
by

new

1958; rights to expire on Nov. 21, 1958*
supplied by amendment.
Proceeds—

To pay short-term bank loans* and for additional invest¬

received

(Friday)

November 14

(Wednesday)

stockholders—underwritten
Weeks) $5,123,600

stock
stock¬
share for eaeh 20 shares
common

common

curities & Co.

Bankers Management Corp

$8,000,000

Eastern Stainless Steel Corp
(Offering

Bonds

$20,000,000

;

Preferred

EST)

Norfolk & Western Ry.

$28,000,000

$10,000,000

Texas Electric Service Co
"r
" •"
(Bids noon EST)

November

Bonds

EST)

noon

a.m.

November 10

Common

Texas Electric Service Co
•

Stuart

$1,125,000

Tishman Realty & Construction Co., Inc.—Common

General Aero & Electronics Corp.

V-

(Dillon, Read & Co. Inc. and Halsey,

Common
300,000

Debentures
$25,000,000

EST)

November 7

Common

Co.)

noon

100,000 shs.

Pierce, Fenner '& Smith and

Kidder;. Peabody

(Thursday)

Natural Gas Pipeline Co. of America

Florida Power & Light Co
"•

(Bids

and Glore, Forgan & Co.)

Indiana & Michigan Electric Co

Co., Inc.)

of Cary Chemicals Inc.—underwritten
and P. W. Brooks & Co., Inc.) $331,660

November

Common

Co.

Commonwealth Edison

stockholders

(Tuesday)

200,000

Common

Columbia Gas System, Inc

25,000 shares

Central-Soya Co., Inc.-_.
.

Common

(Milton D. Blauner & Co., Inc.)

(Offering

$500,000

Inc.

(Wednesday)

Chemirad Corp.

Debentures

Blauner.&

one

writer—None.

by Lee Higginson Corp.

Tenney Engineering, Inc
/,

$300,000

(Monday)

(10/31)

working capital and general corporate purposes. Under¬

November5
Preferred

Union Securities &

7.';.

ments in domestic subsidiaries.

Gulf States

(Eastman Dillon,

---7

Proceeds—To the

NEW ISSUE CALENDAR
United Cities Gas Co

••

(par $5) to be offered for subscription by

General Aero A Electronics Corp. (10/28)
>
Sept. 29 filed 500,000 shares of common stock (par 10
cents), of which 100,000 shares are to be sold for the
account of selling stockholders.
Price—$2.25 per share.
Proceeds—For acquisition of stock of National Missile &
Electronics Corp., additional working
capital and other
corporate purposes. Underwriter—Willis E. Burnside &
Co., Inc., New York.

par) and 1,537,500 shares of

Pet. 1 filed a maximum 530,000 shares of

pay

Corp., New York

7-<--v

General Public Utilities Corp*.

Price—To be

General Aniline & Film

filed

Proceeds—To

'• 77^"''^'

.y'

Jan. 14, 1957 filed 426,088 shares of

;Federal Pacific Electric Co.

—None.

Werner &
.

shares held about April

15; unsubscribed
Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter

Price

Aug. 6 (letter of notification) 300,000 shares of common
Price—At par ($1 per share). Proceeds—To erect
and operate an activities
building, comprising a restau¬
rant, cocktail lounge and coffee shop. Office—3938 Wil-

Federal Commercial Corp.
May 21 (letter of notification) 300,000 shares of common
stock (par 10 cents).- Price—50 cents per share. Pro¬
eeeds—To make loans, etc. Office — 80 Wall
St., New
York, N. Y.• Underwriter—Dumont Securities Corp., New
York, N. Y.
;.A ; :

ment.

100

each

held

stock.

Underwriter—Cador, Inc.,

70,000 shares of common stock (par $1).
These shares are a portion of the 111,910 shares
pre¬
viously issued or set aside for issue in connection with
recent acquisitions:-f Price—To be supplied by amend-

for

shares to public.

Office—Brooklyn, N. Y. Underwriter—Greenfield
Co., Inc., New York. Offering—Expected this week;

shire

Devices/ Inc., Princeton, N. J.

(letter of notification) 40,000 shares of com¬
stock {par $1) to be ottered for subscription bp
stockholders at the rate of approximately 18.5 shiaee
mon

Fremont Valley'Inn

ed^ notes).1 Proceeds—Exploration Service Co. to ac¬
quire 80% interest in a certain concession from Amkirk

•

General
March 31

*"'v

offered for/gale in $12,500 units (of which
$8,000 is pay¬
able iii cash and $4,500 is to be represented
by promis¬

Oct.

•

Laboratories, Inc.

150,000 shares of capital stock (par It
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's
products, working capital, addi¬
tional inventory and accounts
receivable, for research
and development and for other aeneral
corporate out

Exploration Service Co., Ltd., Far Hills, N. i. Aug. 11. this company and Amkirk Petroleum Corp.
(latter; of Port Worth, Texas) filed $400,000 of working
interests (ndn-producing in Sinu Valley
Project), to be

,.v'5'

Forest

March 26 filed

operating

Kidder, Peabody & Co., both of

poses.

expense during the development period of the corpora¬
tion. Underwriter—None.

and for exploration program.
Far Hills, N. J.

and

New York.

Price—At market. Pro-

May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been postponed.

(no par).

supplied by amendment. Proceeds — To
provide additional electric facilities and for other cor¬
porate purposes.
Underwriters—Merrill Lynch, Pierce,

Eichler &

stock

Price—To be

Electronic Specialty Co., Los Angeles, Calif.
Aug. 8" (letter Of notification) not in excess of $50,000
aggregate value of common stock (par 50 cents) to be
sold in State of California only.
ceeds—To selling stockholders,'

(10/28)

common

Underwriter—None.

Continued

page

The Commercial and

(1706)

Continued from page

Home (Joseph) Co.
Sept. 25 filed $2,538,900 5%% convertible subordinated
debentures due 1973, being offered for subscription by
common stockholders of record
Oct. 14, 1958 on the
basis of $100 of debentures for each 12 common shares
held; rights to expire on Oct. 29. Price—100% of prin¬
cipal amount. Proceeds—Together with other funds, will
be used primarily to acquire furniture and fixtures and
to provide working capital for the opening of two new
stores. [Pending the opening of these stores the proceeds
will be used to reduce or eliminate seasonal bank bor¬
rowings.]
Business—Department store. Underwriter—
The First Boston Corp., New York.

^ Hyde Park Cooperative Society, Inc.
Oct. 13 (letter of notification) 8,000 shares of common
Stock (par $10) and $30,000 certificates of indebtedness
due in 10 years at 5%; five years at 4^%, and three
years at 3%. Price—At par (the certificates in denom¬
inations of $25 each).
Proceeds—For working capital.
Office—5535 South Harper Avenue, Chicago 37, 111. Un¬
derwriter—None.
t Idaho

Laughiin Alloy Steel Co., Inc.
Aug. 28 filed $500,000 of 6% subordinated callable de¬
bentures due June 30,1968, and 150,000 shares of common
(par 10 cents) to be offered in units of $100 of
debentures and 30 common shares. Price—$100 per unit.
stock

Proceeds—Together with a $175,000 mortgage loan from
the American Brake Shoe Co., will be used to meet ex¬
penditures in acquiring latter company's South San
Francisco foundry and for working capital. Offices—Las
Vegas, Ney., and South San Francisco, Calif. Underwriter
Watson Co., Inc., Little Rock, Ark., on a best

—Sam

efforts basis. V.-/

Manufacturing; Co., Inc.

and $100 per unit to stockholders

(each unit consisting of

$8$ of debentures and one class B share). Proceeds—For
expenses of setting up production and distribution; man¬
ufacturing and operating expenses and for operating

capital. Office—210 North 30th, P. O. Box 5070, Boise,
Underwriter—First Idaho Corp., Boise, Ida.

Ida.

Indiana A Michigan

Electric Co. (11/6)
r
Sept. 26-filed $20,000,000 of first mortgage bonds due
Nov* 1, 1988. Proceeds—To retire bank loans used for
construction program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Eastman Dillon, Union Securities & Co.; The
First Boston Corp.; Harriman Ripley & Co. Inc. Bids—
Expected to be received up to 11 a.m. (EST) on Nov. 6.
Industrial Minerals Corp., Washington,

D. C.
July 24 filed 600,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—To develop and
operate graphite and mica properties in Alabama. Un¬
derwriters—Dearborn & Co. and Carr-Rigdom & Co.,
both of Washington, D. C., on a best efforts basis.

Underwriter—None.

V'-

Insurance Securities

Corp.
March 28 filed 1,000,000 shares of-capital stock (par $1) .
price—$5 per share. Proceeds—To acquire stock control
it "young, aggressive and expanding life and other inrnrance companies and related companies and then to
operate such companies as subsidiaries;" Underwriter—
ftrst Maine Corp., Portland, Me.
"i.
Sept. 29 filed 100,000 shares of capital stock (par $2.50)
be offered for subscription by holders of the com¬

pany's presently outstanding 55,975 shares. Price—$6
share. Proceeds—To be added to capital funds. Office
City, L. I., N. Y. Underwriter—None.

per

—Garden

Angeles Drug Co.
50,000 shares of capital stock, to be offered
subscription by holders of outstanding stock, on a
pro rata basis. Any shares not so sold will be offered on
an exchange basis to holders of outstanding 5% sinking
fund debentures. Price—$10.50 per share tp stockholders;
Los

Oct. 3 filed

for

$11.50 to public. Proceeds—$328,300 to redeem outstand¬
ing 5% sinking fund debentures and $189,200 to reduce
short term bank loans. Office—Los Angeles, Calif. Un¬

derwriter—Quincy Cass Associates, Los Angeles, Calif.
LuHoc Mining

Corp.

Price—$1

Industro Transistor Corp. (N. Y.)
Feb. 28 filed 150,000 shares of common stock

under

(par 10
cents). Price—To be related to the market price. Pro¬

share. Proceeds — For the acquisition of properties
option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium, Pa.

ceeds—For working

Underwriter—None.

capital and to enlarge research and
development department. Underwriter — S. D. Fuller A
Co., New York. Offering—Being held in abeyance.
International Harvester Credit Corp. (10/29)
Oct. 9 filed $50,000,000 of 21-year debentures, series A,
due 1979. Price
To be supplied by amendment. Pro¬
ceeds—For purchase of receivables and to reduce shortterm borrowings. Underwriters—Morgan Stanley & Co.,
—

per

M. Cm A. Credit

Co., Inc., Miami, Fla.

Mairs & Power

Fund, Inc., St. Paul, Minn.
Aug. 6 filed 40,000 shares of common stock. Price—At
market.

National Bank Bldg., St. Paul, Minn.

★ Investors Realty Mortgage & Financial Corp.
pet. 16 (letter of notification) 140,000 shares of class A

Baltimore, Md.
sinking fund debentures, due
July 1, 1978. Proceeds — Working capital and general
corporate purposes. Price—To be supplied by amend¬
ment. Underwriter—Smith, Barney & Co., N. Y. Offer¬
ing, which was expected on July 2, has been postponed,
fssue to remain in registration.

common

Proceeds

St.,
t,

stock (par 10
—

Aiken,

cents). Price — $2 per share.
For working capital. Office — 2928 Pickens
S. C. Underwriter—None.

Itek Corp.

Sept. 15 (letter of notification) 9,340 shares of
stock (par $1) to be offered for subscription by

common

stockholders on basis of one share for each 12 shares
held. Unsubscribed shares to be sold to certain stock¬
holders. The offering will be made sometime in October.

Price—-$30

per

share.

Proceeds

and acquisition of a plant site.

—

For working capital

Office—1605 Trapelo Rd.,

Waltham, Mass. Underwriter—None.
Kentucky Jockey Club, Inc.
3ept. 26 filed $2,300,000 of 6% first mortgage bonds due
jl.973, and 230J000 shares of common stock (par $1) to be
offered in units of $100 of bonds and 10 common shares
(5 of which will not be separately transferable from the
bonds to which they pertain prior to Dec.
1, 1959).
r^To be supplied by amendment

$112.50

per

unit).

Price
(reported to be about
Proceeds —For completion of the

Latonia

plant, and for general corporate purposes.
derwriters—The Kentucky Co., Louisville,

Ky.,

Un¬

and

Scherck, Richter Co., St. Louis, Mo, Offering—Expected
this week.

First

Office—1002
•

Martin Co.,

June 11 filed $25,000,000 of

Mayfair Markets
March 24 (letter of notification) 5,000 shares of 6%
cumulative preferred stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of one
share of preferred and one share of common stock. Price
—$60 per unit. Proceeds—For working capital. Office—
4383 Bandini Blvd., Los Angeles, Calif.
Underwriter—
None.

...

Laclede Gas Co.
1983*

W,000,000 of first mortgage bonds due
Proceeds—To refund 4%% first mortgage bonds

due 1982.

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman

Co.,ilnc. Offering—Expected this Fall.

;

Montreal; (City of ), Canada (10/28)'
v
r
10 filed. $28,000,000 of sinking fund debentures for

Nov. 1, 1978. Price—To be sup¬
Proceeds — For public improve¬
ments, vor -to the -repayment of interim \j borrowings
incurred' in
the.' temporary
financing of such costs.
Underwriter—May be determined by competitive bid¬
ding. -Probable > bidders: Halsey. Stuart & Co. Inc.,
Shields & Cp., Savard & Hart Inc. and Salomon Bros.
& Hutzier (j ointly); Lehman Brothers, White, Weld &
plied by. amendment.

Co., Eastman Dillon, Union Securities & Go. and Blyth
& Co;, Inc. (jointly). Bids—Expected to be received on
Oct. 28.

7 *

Picture

Investors

Inc.

July 11 'filed <200,000 shares of common stock (par $1).
Price—$10:75 per share. Proceeds—For investment. Of¬
fice—1000' Power & Light Bldg., Kansas City, Mo. Un¬
derwriter—None.
\;'' ..;
" V
-■
-

States

Mountain

Telephone & Telegraph Co. v;
Sept. 3 filed 700,961 shares of capital stock being offered
for subscription by stockholders of record -Sept 26, 1958
at rate of one new share for each five shares held; rights
to expire on Oct.n 24, 1958/ Price — At par ($100 pier
share). Proceeds — To repay advances from American

Telephone & Telegraph Co*, the parent; and for general
corporate purposes. Underwriter—None. Control—The
parent owns over 80% of the 3,504,809 outstanding
shares.

;

7-:

•

■'

7'■

Municipal Investment Trust Fund, Inc. (N. Y.)
May 9, 1957 filed 5,000 units of undivided interests iri
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment. Sponsor—Ira Haupt
&

Co., New York.

;

National Beryl &

Mining Corp., Estes Park, Colo.
May 16 (letter of notification) 2,916,000 shares of non¬
assessable common stock (par one cent). Price—10 pents
pier share. Proceeds—For mining expenses. Underwriter
—Birkenmayer & Co., Denver, Colo.
National Educators Finance Corp.

(letter of notification) 50,000 shares of cofhmon

Price—At

(50 cents per share). Proceeds—
persons to implement and carry
projected plan of development and operation.
Office—140©"' Pearl St., Boulder, Colo.
Underwriter—
Western Securities Co., Boulder, Colo.
J
1
train and

out

par

procure

the

jr Natural Gait Pipeline Co. of America (11/7)
^
Qct. 16 filed $30,000,000 of first mortgage pipeline bonds,
due Nov', h 1978. Price—To be supplied by amendment.
I»roceeds—To-reduce bank loans, incurred for the Com¬
pany's expansion program. Underwriters—Dillon, Read
& Co. Inc. and Halsey, Stuart & Co.-Inc.. both of" New
York.
:

••

National

■

;

Shares-: Corp.

•*,

Sept. 26 *filed 540,000 additional shares of capital stock
(par $1) being offered fdr subscriptionby stockholders
at rate of one new share for each two. shares held us of
Oct* 15, 1958 (with an oversubscription privilege); rights
to expire ;on Oct. 29f1958/ Price—$15 per share.
Pro¬
ceeds—For Investment. Business—A diversified manage¬
ment investment company of the closed-end type. Under-

Naylor Engineering & Research Corp.
'
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬
fice— 1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
writer—Waldroh & Co., .San Francisco 4, Calif.
/»•'

Underwriter-—None.

Minerals Consolidated, Inc., Salt Lake City, Utah
Aug. 29 filed 1,000,000 units, each consisting of one share
of common stock (par 10 cents) and two warrants to pur¬
chase one common share. Price—$1 per unit. Proceeds
.

drilling, exploration and development of oil and

properties. Underwriter—None. Stop order proceed¬
ings instituted by SEC on Oct. 6.

Engraving & Machine Co.
112,500 shares of common
stock (par 50 cents) to be offered for subscritpion by
stockholders of record Oct. 6, 1958 on the hasis of one
new share for each three shares held;
rights to expire
at 3:30 p.m. on Oct. 27, 1958. Price—$2 per share. Pro¬
ceeds—To purchase all of the common stock of Thomas
& George M. Stone, Inc. Office—1413 Chestnut Avenue,
Hillside, N. J, Underwriter—None.

—None.

writer—None.

(letter of notification) 159,395 shares of common
stock (par 25 cents) to be offered for subscription by
stockholders of record Oct. 15, 1958 on the basis of one
new share for each five shares held;
rights to expire
Dec. 15, 1958.
Unsubscribed shares may be offered to
one or more persons selected by the board of directors.
Price—$1.40 per share. Proceeds—To reduce bank loan;
to increase working capital and for general corporate
purposes. Office—617 W. 7th Street, Los Angeles, Calif.

company's 1959 oil and gas exploration program, to be
offered in units. Price—$25,000 per unit. Proceeds—For
acquisition and exploration of undeveloped oil and gas
properties. Underwriter—None.

pay off short-term obligations and to improve working
capital. Office—90 Mill St., Laconia, N. H. Underwriter

■.

Oct. 8

—For

Manufacturing Co., Inc.

•;

Local Improvements due

Modern

Oct. 7 (letter of notification)

.•

Nebraska Consolidated Mills Co.,

Omaha, Neb.

Sept. 9 filed <49,423 shares of common stock (par $10)
to be offered for subscription by common stockholders
at rate of one new share for-each eight shares held as
Oct. 10, 1958 (with an oversubscription privilege);
rights to expire on Oct. 29. Prjce—$10 per share. ^Pro¬
gbner'al corporate purposes. Underwriter—
of

ceeds—For
None.

gas

Kinsman

-.t.

^ Merchants Petroleum Co.

★ Kilroy (W. S.) 1959 Co., Houston, Texas
Oct. 20 filed $3,750,000 of
Participating Interests in the

Aug* 25 (letter of notification) 1,482 shares of common
stock (no par). Price — $100 per share. Proceeds — To

•.

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction. program through
1959.
Manager-Dealers *—
Smith, Barney & Co., Kidder, Peabody & Co. and Biyth

stock.

Corp., Miami, Fla.

investment.

pending improvement in market conditions.

July 1 filed 190,000 shares ofcommon stock (no par).
The stock will be offered only to bona fide residents
of Montana. ;Price—To be..: related to the current market

& Share

Proceeds—For

sale

Montana Power Co.

June 4

6 filed

GJore, Forgan & Co. and William Blair & Co.
Investment Corp. of Florida
Qcf. 9 (letter of notification) 55,555 shares of common
stock (par two cents). Price—$4.50 per share. Proceeds
•—For capital account and paid-in surplus. Office—At¬
lantic Federal Building, 1750 E. Sunrise Boulevard, Ft.
Lauderdale, Fla. Underwriter-None.

to defer

100,000 shares of common stock. Price—$5
per share. Proceeds—To reduce current indebtedness to
Walter E. Heller & Co.
Underwriter—Plymouth Bond
Oct.

Thursday, October 23, 1958

Securities-Corp. (jointly); White, Weld & Co.;
Dillon, Union Securities & Co.; Kidder Peaoody & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26-at Room 2033, Two Rector St.,
New York, N. Y^ but company on Aug. 22 again decided

Motion

Eastman

Long Island Casualty Insurance Co.

Sept. 29 filed 350,000 shares of common stock.

Oct.

/uly 16 filed $1,280,000 of participations in partnership
interests.
Price—$10,000 per participation. Proceeds—
To purchase the Leader Building in Cleveland, Ohio.
.

Webster

•

Leader-Cleveland Realty Associates, ftL Y.

Life

Aug. 22 (letter of notification) 2,000 shares of class A
stock (par $15), $170,000 of 6% subordinated debentures
and 2,000 shares of class B stock (par $15) being offered
first to stockholders. Price—$15 per share for class A

(

Brothers, Merrill Lynch, Pierce, Fenner & Smith and
(jointly); Eastman Dillon, Union
Securities & Co.; Stone & Webster Securities Corp. Bids
—•Had been expected to be received up to 11 a.m. (EDT)
m July 8, but offering has been postponed indefinitely.
Reinholdt & Gardner

Financial Chronicle

Statement effective Oct. 7.

Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
stock (par cme cent). Price—$2 per share. Proceeds—To
pay loan; "to; acquire iishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment" Co.," Inc.,
Houston, Tex. ,
-

North Carolina Telephone

Co.

Montana

of one share for each six shares held. Price—At par

Power Co.

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds
Together with, other funds, to be used to
repay $15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬
writer—To be determined by competitive bidding. Prob¬
—

able bidders:

Halsey, Stuart & Co. Inc.; Lehman Bros.;

Merrill Lynch, Pierce,

June 19 (letter of notification) 207,143 shares of coinmon
stock to be offered-to common-stockholders at the ratio

Fenner & Smith, and Stone &

($1

share). Proceeds—To pay off obligations and foe
telephone plant construction. Underwriter—None._
per

Northwest Gas & Oil. Exploration Co.

Aug. 22 (letter of notification) 300,000 shares of common

stock--(par 10 cents). Price—$1 per share.- Proceeds—?For acquisition of additional gas and oil interests and
corporate "administrative expenses; Office—150 Broad-

Volume

Number 5788

188

way^Nev* York 38,^N. Y.
Co^jtac^.New York 5, N.

...

The Commercial and Financial Chronicle

Underwriter

Greenfield &

A Procter & Gamble Co.
Oct, 16 filed 3,500 participations in the company's Profit
Sharing. Dividend-Plan- and 4,000 participations in the
V\"'
company's Stock Purchase Plan, together with 125,500

—

/%Oak Ridge, Inc.;..
7%;
■:::}^
Sept. 4 (letter of, notification) 100,000,sha^s of'common
stock

shares of common stock

Price — $3 per share. Proceeds
*'• Fdr
working- capital.
Office—11 Flamingo Plaza, Hialeah,
Fla,- L uderwriter'A-. Henry ; & Associates,
11 Fla¬
mingo Plaza; Hialeah, Fla. ■
*?}{ - V:
(par 81)'.

ant

.-v. -

.•

class

mon

stock

(par

$1),

aharcs^uiXcvn.

23,200

Price—$5-

per. share

/Pro

Md>

18,

Utidet writer—Bunicn

Sparks, Md.\: .■■;?*Z f"• >"'■
77v

Panama

■' >v-I:■%

New York

\
^y"
'70 '
.
;'■

•

and

for

Panama's

feeder

road

Under¬

program.
^

—Rassco

Proceeds—For

stock

the basis of

one

new

•••Y

share for each

;

....

■.y'-*

ytn

t Peninsular Metal Products Corp.
Oct.

(letter of notification)

10,000 shares of

—

Securities Co.,
:'v J-]'"

Citrus

Reynolds Engineering & Supply, Inc.
Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1).: Price — $5 per share. Proceeds — Foi
working capital. Office—2118 N. Charles St., Baltimore
18, Md. Underwriter—L. L. Bost Co., Baltimore, Md.

;%■

J';*:'

year.

efforts'

(par five cents).; Price —$2

working capital. : Underwriter
Orlando, Fla. ■ ^ v v

Office—800 N. KedkieAve^ Chi-

Underwriter—None'.-

51, 111.

cago

"best

Corp./Orlando, Fla.
Sept. 22 filed 100,000 shqres of class A common stock
Price—To be supplied by-amendment. .Proceeds—For

Any unsubscribed shares will be pur¬
chased by Rock-Ola Mlg.' Corp! Warrants expire 20 days
from date of issuance. Price—$4.25 per share;': Proceeds
v—For working capital.

iUfmo

four shares held.

For inventories and

Weighing & Vending Machine Corp.
June 27 (letter of
notification) a maximum" o£ .25,000
shares of common stock (pan $1) to be offered to.minor¬
on

Israel

per sare. Proceeds —
working capital. Office—1007 South
,21st Avenue, Hollywood, Fla; Underwriter—None.

Pasadena, Calif. ..!

Peerless

ityStockholders

Oct. 16 (letter of notification). 150,000 shares of common

in vestment.Under¬

common

stock

(par;$l),..,Pfice—At market (not to exceed an aggregafe of $100,000); Proceeds—To a selling stockholder.

Richwell

repay outstanding indebtedness.

Dillon,

Union

Securities

Colo.' Underwriter—R.*

CO.,; Salomon Bros. & Hurler and Ladenburg, Thalmann
(jointly); Merrill Lynch, Pierce, Fenner
Smith
Dean Witter

Co.- (jointly).
Bids — Tentatively
to be received up;to It a.*m; (EDT);
Oh Aug. 27' but company on Aug. 22^ decided to defer
sale pending 'improvement in market conditions.

and

ital."

Country Club, Inc.
Sept. 29'(letter of notification) 300,000 shares of common
stock (par 10 cents), Pyiee—$1 per share, proceeds—To
acquii^e land and for con st r u cation of .swimming pool? and
lockers and other uses.. Office^—Plainyiew,f-Long Island,

Proceeds—For

working, capital. ; Office—27
St;* Binghamcon, N. Y^Hndetwriter-^Nohe^
Ponce de Leon

■'.

Saskatchewan
Canada^ Underwriter—Allied Securities Ltd., and United
Securities; Ltd., both of Saskatoon, Canada^ T.;'./
Preferred Risk Life Insurance Co.

;

Sept. 8 filed 250,000 shares of common stock (par $1)
Price—$4 per share.- Proceeds—To increase capital and
surplus.
Office—Colorado Springs, Colo. Underwriter

tdue Sept. 15, 1963 to be offered for subscrip¬
Price—
3172

—

Rd., Chicago 14, 111. Underwriter—None

one new

share for each four shares held of record Oct.

21, 1958, rights to expire on Nov. 10. Price—$11.50 per
Proceeds—For equipment, merchandise and gen¬

share.

Office—Saskatoon,

■—None.

Underwriter—Kay & Co., Inc., Hous¬

Shop Rite Foods, Inc., Albuquerque, N. Mex.
Sept. 25 filed 35,383 shares of common stock (par $5)
to be offerqd for subscription by stockholders at the rate

;

residentk of the United States "only in the State of North
Dakota."'1 Price — $3;. per share.' Proceeds — For con¬

tion by common stockholders on a pro rata basis.
At par.. Proceeds—For working capital. Office

Aug.'1*8 filed' 209,993 shares of common stock (par; $1.50)
to be offered for sale to residents of Canada in the Prov-'
inces of Manitoba, Saskatchewan and Alberta, and tc

purpose.

r-}

North Sheridan

Prairie Fibreboard Ltd.

struction

Worth, Tex.

debentures
.»•

•

or moss

one

Southwest Shares, Inc.. Austin, Texas.

Strouse, Inc.
July 29 (letter of notification) 26,850 shares of common,
stock (par 10 cents) to be issued upon exercise of war¬
rants, Price—$1 per share. Office—Main fic Astor Sfck,
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc^

Philadelphia, Pa.
Tampa Electric Co. (10/29)
8 filed 100,000 shares of series C preferred stock
Price—To be supplied by amendment., Pro¬
ceeds—For construction program.
Underwriter—Stone
& Webster Securities Corp., New York.
Oct.

(par $100).

Tenney Engineering, Inc., New York (10/27-31)
shares of common stock (par 10 cents)

Oct. 2 filed 25,000
and

$500,000 of 6% convertible subordinated debentures

due Nov. 1, 1968. Price—To be supplied by amendment.
Proceeds — To retire outstanding bank loans, to- eaneel
notes

and for

general corporate purposes.

—Milton D. Blauner &

Underwriter

Co., Inc., New York.

Texas Electric Service Co.

(10/28)

Oct. 2 filed $10,000,000 of first mortgage bonds due 1988.
Proceeds—Together with other funds, will be used for
construction program,

and other corporate purposes, in¬
of ,J$J,600,000 borrowed from
(parent company), Underwriter—-To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart fic Co. Inc.; The First Boston
Cjorp.;
Kidder, Peabody fic Co. and Merrill Lynch, Pierce, Fen¬
cluding

the

repayment

Texas Utilities Co,

ner

fic Smith

Inc.

(jointly); Kuhn, Loeb fic Co., Blyth fic Co.,
Brothers (jointly); Eastman Dillon,

Lehman

and

Union Securities fic Co.

Bids—To be received up to noon.
(EST) on Oct. 28, in Room 2003, Two Rector St., New
York 6, N. Y.
>

Texas Electric Service Co.vt 10/28)

Oct. 2 filed 80,000 shares of .cumulative preferred stock

(no par).

Proceeds—Together with other funds, will.be

used for construction program, and other corporate pur¬

Underwriter—To be determined by competitive
bidding.
Probable bidders:; The First Boston; Corp.;
Glore, Forgan fic Co.; Harrimai* Ripley fic Co., Inc;, and
Stone fic Webster Securities Corp* (jointly) £ Kidder, Peabody fic Co. and Merrill Lynch; Pierce, Fenner fic Smith
(jointly); Kuhn, Loeb fic Co., Blyth fic Co., Inc,, Lehman
Brothers and Salomon Bros, fic Hutzler (jointly);; East¬
man Dillon,
Union Securities fic Co. Bids—To be re¬
ceived up to noon (EST) on Oct. 28", in Room 2003, Two
poses.

St., New York 6, N. Y.

Thomas Paint Products Co.

May 26 (letter of notification) 1,250 shares of common
(par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
share of stock and $50 principal amount of debentures
«tock

the basis of

one

unit for

stock

Aug. 19 (letter of notification) $250,000 of 6% convertible

Aug. *7 filed1 400,000 shares of common stock (par one
cent). Price^—$1.50 per share. Proceeds—To pay current
liabilities, for new construction and working capital
Office—Bayard, Fla.
Underwriter—Roberf L. Fcrman
>

Proceeds—To erect and operate

share.

preferred stock

Sheridan-Belmont Hotel Co.

Trotting Association, Inc.

QOi, Inc., Miami, Fla..

per

chemical processing plants using the Bruce - Williams
Process to, beneficiate manganese ores
Underwriter-

Gav, Underwriter—None.

Service Life Insurance Co.

Fort

acquire other life

Strategic Minerals Corp. of America, Dallasr Tex.
$2,000,000 of first lien mortgage 6% bonds
975,000 shares of common stock (par 10 cents). Priee
—For bonds, 95% of princ;oal amount; and for stock 99

cumulative

ton, Tex.

Chenango

March 31 filed

to be offered to stockholders

share foi

each, share held; unsubscribed shares to, be offered tc
debenture? holders and to ethers. Price—$8 per share

Underwriter—None.

Sept. 26 (letter of notification) 3,567 shares of common
stock (par $1).
Price—$18.75 per share. Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,

Policy Advancing Corp.f
'-f•
lVferch 25 (letter of notificationf 30^50 shares of com¬
mon- stock
(par $5) to be offered for subscription by
new

bonds, and

each

;

New YorkUnderwriter—Sano & Co., New York,; N. Y.

one

and

insurance companies. Address—P. O. Box 678, Gulf
port;
Miss. Underwriter—Gates, Carter & Co., Gulfport, Misa.

Atlanta 9,

Co., New York'; Plymouth Bond'fir Share. Corp.,'-

stockholders at the rate of

in stocks

invested

Scientific-Atlanta, Inc.
Sept. 11, (letter of notification) 6,500 shares of common
stock (par 50 cents) being offered for subscription by
common
stockholders of record Sept. 10, 1958 on the
basis of one new share for each 20 shares held; rights tc
expire Nov. 14, 1958. Price—$5 per share. Proceeds—
For working capital. Office—2162 Piedmont Road, N. E.,

I Plainview

common

Price—$20 per share. Pro¬
installation, construction and working cap¬

ceeds—For

subsidiary;

Miami, Fla,; and Clayton Securities Corp., Boston, Mass.

be offered to stockholders on the
share for each three shares held; rights

one new

Life, Health A Accident Insurance Co.
(letter of nJfification) 50,000 shares of commoa
Price—$5 per share. Proceeds—-To be

(par $1).

Rector

will expire on Oct., 31, ,1958.

$160,009 for reduction of indebtedness; anh' the balance
fpf. general corporate purposes. Und.ejrwriters-A(pharles
Flohn &

stock

common

(par $10), to

basis of

Inc.,

Rural Telephone

stock

which 125,000 shaces, are to be.sold .fpf ac¬
and ^25,000 shares for selling .stockPrice—$4 per share. Proceeds—$156,000. fof ex¬

pansion:'of business' of. Glass Arts,

Roan

stock, $1

Co., Knox, Pa.
Sept. 29 (letter of notification) 3,000 shares of

Perrine Industries, fnc.r Miami, Fla.
(1C/29)
Sept 23 filed 150,000 shares of class A common stock

holders.

Windover

debentures, at par (in units of $100 each)
per sh^re. Proceeds — For investments
working capital. Office—Alexandria, Va. Under¬

writer—None. 1
.

company

Office—Littleton

Robbins Investment Corp.

Routh

and

♦

Co.,

Price—Of

had been expected

count

Ford

Sept. 22 filed!,$1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock

fir Co.
and

Memphis, Tenn.
:

Underwriter—U. S.

State

July 9

by competitive bidding. Probable biddefs* HafseyJStuart.
& Co. Inc.; Kidder, Peabody '& Co.; White
Wet^Sc Co.,;
Equitable- Securities Corp., and Shields & Cb.;(jointly);
Lehman ' Brothers, Eastman

—

Sunset Blvd., Los Angeles 46, Calif.

Petroleum

Ltd., Alberta, Canada
June 26 filed 1,998,716 shares of common stock (par $1)
Office—1365 Jarvis, Ferndale. Mich.
Underwriter—-Wm.
Of this stock, 1,174,716 shares are to be sold on behalf of
C. Roiiey & Co., Detroit, Mich.
■-f- the company and 824,000 shares for the account of cer¬
tain selling stockholders. The company proposes to offei
L.J Penn-Texas Corp.
yy.■ -A- w.
• •/; f.
the 1,174,716 shares for subscription by its shareholder!
Sept.. 25 filed.;1,488,438 shares of common stock (par
at the rate of one new share for each three shares held
$F> be.ing offered for subscription by commajl stoekhold(with an oversubscription privilege). The subscription
eVsl at the* ratei of one new share for each three* shares
period will be for 30 days following issuance ol sub¬
held as of Oct. 15,, 1958; f ights to expire .oh Oct. 31; 195.8.,
scription rights. Price—To be supplied by amendment
PTieeT—$5: per share.;. Proceeds—To be used to buy from
Proceeds—To pay off demand note, to pay other indebt¬
Robert H; - Morse, Sr., 297,231 common shares of- Fair-.
edness, and the balance if any will be added to working
banks. Morse & Go; Underwriter—Bear; Stearns & Co.,;
capi tal. Underwriter — Pacific Securities Ltd., Van¬
New;'York.r•
'-v'-''v„couver, Canada.
Pennsylvania Power Co.
f<;
Rocky Mountain Quarter Racing Association
Augiff filed $R,000,000 of first mortgage bonds dUe l988.
Oct. 31, 1957 (letter o£ notification) 300,000 shares ol
Proceeds^-Tb redeem a like amount of 5% first mort¬
Common stock.
Price—At par ($1 per share). Proceedi
gage* bond$i due *1987.
Underwriter—To tbe determined
—To
..

Stanway Oil Corp.
Aug. 14 (letter of notification; 300,000 shares of common
Price—At par ($1 ner share). Proceeds—For de¬
velopment and operation of an uil well. Office
9151

stock.

and

Corp., New York,
Offering—Expected late this

basis.

Fund, I tie., Pasadena, Calif; 'y
May 19 filed 20,000 shares of eommorn stock* r(par $1).
writer—Investors Investments Corp.,

Underwriter—To

loans.

26 filed

> Peckman Plan

Price—At?- market.

bank

Corp.
$1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denominations
of $500 and $1,000. Price—At par. Proceeds—For work
ing capital and general corporate purposes. Underwriter

toymature;April. 1,-, 1988. Price — To be ^supplied by
amendment.; Proceeds—;; To retire certain outstanding
debt

reduce

Corporation Co., Jersey City, N. J.

Rassco Financial

june

C^t.-Or filedi S16,700,000, pf external secured boaid^pf;4958

writer—Lelv nan Brothers, New York.

4, N. Y.;,>-

/ „>

.;:*■> y.'1^

Republic of) ,(10 3O)

be acquired pursu¬

deeds—For completion of plant plans; land; construe
tiorr and pperating expenses.: Office—2502 ;N./Calver-

St., LBaltimore

which may

determined by, competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc. and Lehman Brothers (joint¬
ly); Merrill Lynch, Pierce, Fenner fie Smith; Stone &
Webster Securities Corp.; The First Boston Corp. anc
Smith, Barney fic Co. (jointly)."Bids—To be received up
to noon (EST) on Get. 29 at 90 Broad
St., 19th Floor.

;

„

Proceeds—To

■

0» T. C» Enterprises inc.,
March 0 (letter of rnotihcalioiu

said- plans.

Puget Sound Power & Light Co. (10/29)
Sept. 26 filed $15,000,000 of debentures due Nov. 1, 1983

(ll&I)

two shares of stock

owned

(500 of the shares ars
being offered to the President of the company). Price—
$60 per unit. Proceeds—For working capital. Office—
543

Whitehall

St., S.

W., Atlanta.

Underwriter—

None.

Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cenl

(par $5) and 27,272 shares
(par 10 cents) to be offered in units
Price—$11 per unH
Proceeds
For working capitaL Office — 111 E. Mais
St., Morristown, Tenn. Underwriter—Valley SecuritHs
Corp., Morristown, Tenn.
of

common

one

share to each class of stock.
—

Tip Top Oil A Gas Co., Salt Lako City, Utah
April 15 filed 220,000 shares of common stock, of whick
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for general
corporate purposes. Underwriter — Andersen-Randolphfir Co., Inc., Salt Lake
City, Utah,

k Tishman Realty & Construction Co., Inc.
(11/19-14)
Oct.

filed

outstanding shares of
—
To be supplied by
selling stockholders. Under¬
writer—Kuhn, Loeb & Co., New York.
common

100,000

stock

amendment.

presently
(par $1). Price

Proceeds—To

Trans-America

Uranium Mining Carp.

eral corporate purposes.

Nov. 6, 1957 filed 3,000,000 shares of common

New

mill). Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserve*,
ind other corporate purposes. Underwriter—None. Al¬

Underwriters—First Southwest
Co., Dallas,; Texas; and Miner, Mee & Co., Albuquerque,

Mexicp.

.Simplicity Pattern Co. Inc., N. Y.
15 filed 42,500 shares of common stock (par $1)
Price—At the market or at a price within a range not
less than the bid price and not higher than the asking
price quoted on the New York Stock Exchange at th€
time of offering.
The shares will also be offered from
time to time on such Exchange at a price within the
foregoing range. Proceeds—To go to Joseph M. Shapiro
the selling stockholder.
Underwriter — Lee Higginson
Aug.

Corp., New York. Offering—Indefinitely postponed.

stock (par

one

fred E. Owens of Waterloo. Ia.,

is President.

Trans Caribbean

Airways, Inc. (N. Y.)/ .
s
Oct. 6 filed $1,100,000 of 5^% convertible subordinated
debentures, due Oct. 1, 1968. Price—100% of pimcipel
amount. Proceeds—To be added to the general funds at*
the company to replenish
the acquisition

of aircraft.

working capital expended in
Underwriter—None*
>
Continued

page

The Commercial and Financial Chronicle

(1708;

Continued

7,500 shares of common

(letter of notification)

(par $1) to be offered pro-rata to stockholders on
the basis of one new share for 10 shares owned. Pries
stock

—$4

Proceeds—For drilling for oil and gai

share.

per

Main

Office—203

Coudersport,

Street,

Pa.

Under

writer—None.

Tricon, Inc.
Aug. 8 (letter of notification) 150,000 shares of common

(par $1). Price—S2 per share. Proceeds—To pay
and cost of plant option; for first year's pay¬
on instalment purchase contract for land and im¬

stock

expenses
ment

provements; for construction of plant, tools and equip¬
ment; advertising and working capital. Office — 540
Steamboat Ptd., Greenwich, Conn. Underwriter—Sano &

Co., New York, N. Y.
Triton

N. J.

Corp., Newark,

Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4,000
shares of 6% preferred stock
(par $100) and 48,000
shares of common stock (par $1) to be offered in units

borrowings under a bank agreement and cash generated;
in the business will be used to carry forward the con¬

of the company and its subsidiaries
amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co., and
Smith, Barney & Co. (jointly). Bids—Were to have been
received in Room 2033, 2 Rector Street, New York,
N. Y., up to noon (EDT) on Sept. 9, but were postponed
on Sept. 3.
Bids will now be received on such day sub¬
sequent to Sept. 22, 1958 but not later than Nov. 25, 1958
as shall be designated by company.
v
struction

program

Vanguard Air & Marine Corp.
3 (letter of notification) 30,000 shares of common
(par $1). Price—$6.50 per share. Proceeds—For
supplies and equipment and for working capital. Address
—P. O. Box 143, Radnor, Pa. Underwriter—None.
Oct.

stock

Weingarten Markets Realty Co.
Sept. 19 filed $1,600,000 of 6% sinking fund debentures,
due Nov. 1, 1978, and 50,000 shares of common stock (par

ducing oil and gas properties. Underwriter—None. Of¬
fice—11 Commerce Street, Newark, N. J.
Timothy H.

$1). The offering of the common stock will be subject
to the right of certain stockholders to subscribe for a

is President.

Tungsten Mountain Mining Co.
Aug. 11 (letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$1.50 per share. Proceeds—
To extinguish present indebtedness, increase reserve for
contingencies and working capital. Office—511 Securi¬
ties

Bldg., Seattle 1, Wash. Underwriter—H. P. Pratt
& Co., 807 Hoge Bldg., Seattle 4, Wash.

total of

9,410 shares at the rate of one new share for each
[Stockholders who have right to sub¬
for remaining 40,590 shares have waived such

scribe

right.]

Price—To be supplied by amendment. Proceeds
discharge bank loans and other indebtedness, and

—To

balance will

the

for further

used

property acquisi¬

tions and development and other regular corporate pur¬

Investors, Inc., Kansas City,

Underwriter—Moroney, Beissner & Co., Houston,
Offering—Expected this week.

Texas.

Mo.

it Wellington Equity Fund Inc.

June 20 filed 2 000,000 shares of common stock (par $1)
Price—At man.et.
Proceeds—For investment. Under¬
writer—Stowers & Co., Kansas

Twentieth Century

Oct.

June

Proceeds

For

—

investment.

Co., Kansas City, Mo. *

100% and accrued interest.

' *'•;

Proceeds—To be added to the

general funds of the company and initially used to
bank

loans

and

short

term

notes.

Hough, Inc., St. Petersburg, Fla.
pected this week.
United Cities Gas Co.

re¬

Underwriter—

Offering—Ex¬

26 (letter of notification) 30,000 shares of 6%
cumulative convertible preferred stock, 1958 series. Price

($10 per share). Proceeds—To pay redemption
price of outstanding preferred stock and for expansion

working capital. Office
Room 938, Merchandise
Mart, Chicago 54, 111. Underwriter
Eastman Dillon,
Union Securities & Co., Inc.,
Chicago, 111.
—

—

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, bj
—

purchase.

Office

Myrl

—

Wilmington, Del.

McKee

Portland,

ther

develop property
operate
•*«

drill

now

owned

common

April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 al
rate of

—

pay

Underwriter—None.

A vot¬

At par

ident.

Utah Minerals Co.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents
per share). Proceeds

stock.

—For

mining

expenses.

Office—305 Main St., Park
City,

City1* u^erwriter—^Waiter Sondrup & Co,, Salt Lake
Utah Oil Co. of New
^

York, Inc.

O^tter of notification) 300,000 shares of
capital
stock. Price
At par ($1 per
share). Proceeds
For
development of oil and gas lands. Office—574
—

Jefferson

Ave., Rochester 11, N. Y. Underwriter—Frank
& Co., Inc., Rochester, N. Y.
Utah

Hunt

Light Co.
$20,000,000 of first mortgage bonds due
Proceeds—To redeem
$15,000,000 of first mort¬

1988.

Power &

filed

for

the

balance

California Electric Power Co.

July 14 it was announced
keting between $5,000,000

one

holdings 1b
divisible by four; alsc
be offered holders of outstanding 5% subordinated
$1,000 of debentures then held.
Proceeds—For

working

Price

—
$60 pel
Underwriter—

capital.

to be publicly offered at $3 each. Proceeds — Foi
general corporate purposes. Office—151 Adell Avenue,

are

—

October, 1958. May be placed
bank loans.
Central

Electric

Edwin

Jefferson,

Commission
of

was

Arvida

mer

Co.
announced that the company plans addi¬

Corp.
was

Chairman

(Florida)

announced by Arthur Vining Davis, for¬
of Aluminum Co. of America, that it is

planned

to raise between $25,000,000 and $35,000,000
through the sale of common stock of Arvida Corp. Price
•—Expected to be about $10 or $11 per share. Proceeds—
To develop residential communities in the near
future,
complete with regional shopping areas, industrial parks,
utility installations and recreational facilities. Under¬
writers—Carl M. Loeb, Rhoades &

Dominick, both of New York.

Co., and Dominick &
Offering—Scheduled to

begin within the next two months.
pected in the
Austria

July 15 it

near

for
stock

common

vertible

Registration

—

debentures.

was

writer—May be Kuhn, Loeb & Co., New York.
ing—Expected in October or early November.

Under¬
Offer¬

Bank of New York

Oct. 21 stockholders of record that date

$100

par

were

before Nov. 14 for

capital stock in the ratio of

100,000 shares

to $3,000,000 con¬
Paine, Webber,

—

Webster Securities

Corp.

Probable bidders:
Salomon Bros. & Hutzler.
;

Halsey, Stuart & Co. Inc.;,

{

j^«•

•

Commonwealth Edison Co.

Aug. 25 it

was reported that the company may issue and
$25,000,000 of preferred stock. Underwriters:—May,,
be The First Boston Corp. and Glore
Forgan & Co., both
of New York. Offering—Expected late in 1958 or during

sell

the first three months of 1959.
Denmark

Sept. 2 it
000 to

(Kingdom of)

was

reported that

$30,000,000

issue of between

possibly be placed

may

market this year.
New York.

can

$20,000-

the Ameri¬

Underwriter—Kuhn, Loeb & Co..

: Equitable Gas Co.
July 18 it was announced that the

company

expects later

in the year to issue and sell additional

securities, prob¬
ably preferred stock, to secure approximately $5,000,000,
of additional funds.
Proceeds—Together with $7,000,000,
from private sale of 41/£%
bonds, to repay short-term
bank loans and for construction program. Underwriter*,
—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White,
Weld & Co., all of New York.
First

City National Bank

Sept.

19 it was announced Bank plans to offer to its
stockholders of record Oct. 2, 1958 the right to subscribe
for 125,000 additional shares of
capital stock (par $20)
on

the basis

one

share for each

new

10 shares held.

Price—$40 per share. Proceeds—To increase capital and
surplus. Office—931 Main St., Houston 1, Tex.
Gas

Service Co.

March 24 it

was reported that
company plans to issue
$11,000,000 of first mortgage bonds later this year. No de-L'
cision as yet has been made as to the
procedure the com¬
pany will follow.
Proceeds—For repayment of short-

notes

term

and

loans
If

for

and

construction

program.

determined

by competitive bidding,
probable bidders may be Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner &
Smith, and White,
Weld & Co. (jointly); Blyth & Co., Inc.; The First Boston
Corp.; Lehman Brothers.
—

• Grace Line Inc.
(10/30)
Company plans to issue $9,000,000 of government insured
bonds secured by first preferred ship mortgages on the

"Santa Paula" later in 1958.

new

Underwriters—Merrill

Lynch, Pierce, Fenner and Smith; Paine, Webber, Jack¬
son & Curtis; Smith
Barney & Co.; White, Weld & Co.,

all of New York.

Great Atlantic & Pacific Tea Co.

Feb. 19 it was reported a secondary offering of common
voting stock is expected this _year. Underwriters — May
include: Blyth & Co., Inc.; Lehman Brothers and Smith,
Barney & Co.
Haverhill

Gas

Co.

capital

proposal to increase

additional

12,285 shares .of
capital stock (par $10) which would be offered for sub¬
scription by stockholders on a pro rata basis, with an
additional subscription privilege. Stockholders will also
vote on authorizing issuance and sale of $900,000 5JA%
first mortgage bonds, due Oct. 1, 1983.
Proceeds—To¬
gether with other funds, will be used to pay bank debt,
and

for

expansion

purposes.

Underwriter

Stone

—

Webster Securities Corp., New York.

Heublein, Inc.

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which
100,000 shares are to be sold for the account of selling
stockholders, Proceeds—For expansion. Underwriter—
Glore, Forgan & Co., New York.
sometime in October

Japan (Empire of)
Aug. 20 it was stated that
and $50,000,000 of bonds
the

American

Offering

—

Expected

November.

issue of between $30,000,000
soon be publicly offered

may

market.

Proceeds—For public works
projects, etc. Underwriter—The First Boston Corp., New
on

York.
Kansas Gas & Electric Co.

March 31, G. W. Evans,

electric power projects and other improvements.

Underwriters

instalments.

Ex¬

(Republic of)

right to subscribe

authority to sell
(par $3.50) and

Chicago & North Western Ry. (10/30)
Bids will be received by the company at 400 West Madisin St., Chicago 6, 111., up to noon
(CDT) on Oct. 30 for>
the purchase from it of
$1,875,000 equipment trust cer-.
tificates, dated Oct. 15, 1958, to mature in 15 equal annual,

future.

announced that the country contemplates
the issuance and sale of $30,000,000 bonds. Proceeds—For

•

Co.

Oct. 20 stockholders will vote

tional financing this year, in the form of common stock,
preferred stock, or a combination of the two, including
bank loans.. 'Proceeds—For expansion
program, work¬
ing capital and inventories. Underwriters—Blyth & Co.,
Inc. and Merrill Lynch, Pierce. Fenner & Smith.

Sept. 18 it

Gas

Jackson & Curtis and Stone &

Prospective Offerings
Steel

Sept. 11 the company applied to the Nebraska Railway

authorized

Acme

and

repay

and F. Eberstadt & Co.,

holders at $2 per share and the remaining
62,035 sharei

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

contemplates mar-;
$7,000,000 securities to
privately. Proceeds—To

company

such

System, Inc.
April 2 (letter of notification) 72,035 shares of commoB
stock (par $1) of which 10,000 are to be offered to -stock-;

Underwriter-—

Uranium Corp. of
America, Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock
(par
16 cents). Price—To be
supplied by amendment (ex¬
pected to be $1 per share).
Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.
Graham Albert Griswold of
Portland, Ore., is Pres¬

mon

the number of shares

Wilier Color Television

($1,500 per share).
part payment of a plywood plant.
—

share for each four shares held and

one new

additional

March 21 it

Price

—

None.

stock.

Price—$225 per share. Proceedssurplus. Underwriter—^Morgan,
Stanley & Co., New York.

Underwriter

share.

Under¬
Ore.. i»

it Universal Plywood, Inc., Roseburg, Ore.
Oct. 16 (letter of
notification) 200 shares of class

share for each three

Westland Oil Co., Minot, N. Dak.

by company and to

other properties.

new

Oct. 13.

★ United Standard Corp., Brenham, Texas
Oct. 6 (letter of
notification) 300,000 shares of common
stock. Price—At par
($1 per share). Proceeds—To fur¬
buy,

one

Sept.

debentures of record March 24 at rate of five shares foi

Security Life & Accident Insurance Co.
Aug. 22 filed 120,000 shares of class A common stock.
Price—$3 per share. Proceeds—To provide the reserves
required to be held in life and accident insurance
poli¬
cies, and to pay the necessary expenses in
producing
insurance.
Office—Louisville, Ky. Underwriter—None.
Edmond M. Smith, is President.

April 11

3,000,000
At market.

Andersen, Randolph & Co., Inc., 65 So
Street, Salt Lake City, Utah. Statement effective

Main

each

United

Proceeds

—

• Western Industrial
Shares, Inc., Denver, Colo.
July 16 filed 1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For investment

—

writer—None.

ing

Price

—

excess

President.

None.

additional

26; rights to expire on Oct. 31.
Price
At par ($5 per share). Proceeds — To be ap¬
plied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction and conversion program. Underwriter—None
Statement effective Sept. 26.

—At par
and

held

Underwriter

(10/24)

Sept.

(par $1).

Telephone Co.
89,391 shares of common stock being of¬
subscription by holders of outstanding com¬

stock at the rate of

lease

stock

filed

for

mon

Underwriter—

;l,/

(

fered

Union Finance Corp., Tampa, Fla.
Sept. 26 filed $500,000 of 6% 20-year sinking fund con¬
vertible capital debentures due Oct. 15, 1978. Price —

•

amendment)

Western Carolina

Stowers &

Beil

(by

common

Proceeds—For investment.

$10,000,000 of plans for the accumulation
of shares of Twentieth Cehtury Investors, Inc. Price—At

duce

Investors Plan, Kansas City,

20 filed

market.

filed

City, Mo'.

Mo.
June

each eight shares held.

—To increase capital and

four shares held.

poses.

Twentieth Century

$4,000,000 of

„

debentures, 20 shares of preferred stock and
240 shares of common stock.
Price—$10,240 per unit.
Proceeds—To acquire, own and operate interests in pro¬

of $8,000 of

Dunn

repay

bank borrowings* and the balance together with further;

Trans-Eastern Petroleum Inc.
Feb. 27

bonds, 5Y4% series due 1987, to

gage

from page 43

Thursday, October 23, 1958

given the

30,000 shares

one new

share for

Chairman, announced that com¬
plans to sell some bonds originally scheduled for
mid-year, but which sale may now be deferred until
late 1958 or early 1959. Proceeds—About $8,000,000 tor
pany

construction program.

Underwriter—To be determined

competitive bidding.
Probable
bidders:
Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
.Stone & Webster Securities
gan

Corp. (jointly); Glore, For¬

& Co., and Goldman Sachs & Co. (jointly).

Volume 188

Number 5788

The Commercial and Financial Chronicle

(1709)

Kansas Power & Light Co-.";/
Feb. 14 it

was

Nsw York Stats Electric and Gas Co.

announced company: plans

to issue and

March 7 it

was announced

$7,500,000 "

from additional

determined by competitive

agement intends to negotiate a new line of credit with a
group of banks and expects to sell equity securities later.
this year or in early 1959, depending upon

bidding.

Probable bidders;
Halsey, Stuart & Co. Inc.- The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co,; Blyth & Co., Inc.; Equitable Securities Corp
June 16 company stated it will sell bonds and/or
stock in the last quarter of

mon

Underwriters—

1958.

Blyth & Co., Inc. and J. J. B.
bonds, to be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Eastman Dillon, Union Securities & Co. and
Merrill Lynch, Pierce, Fenner & Smith, (jointly); Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
&

For

Son.

any

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing
$790,000 of outstanding notes ($658,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis. This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬
ton, Mass.'.
;*■'
-;• ,77"
Lorillard

(P.)

Co.

company announced it plans to offer its stock¬
holders the right to subscribe for approximately 363,000
additional shares of common stock on the basis of one

share for

new

general

each eight shares

corporate

held.

Proceeds

Underwriters

purposes.

—

Brothers and

Smith, Barney & Co., both of New York./
Registration—Expected early in November.
Master Fund,

f "

Inc., Fairfield, Calif.

Jan. 27 it

was announced this newly organized invest¬
^lans to offer to bona fide residents of
California 10,0^1 shares of capital stock (par $1). Price

ment company

—$10 per sharless an underwriting discount of 8l/2%
Proceeds—For investment.
Merchants Bank of

Co.

Northern
June

one

new

pire

crease

share for each eight

shales'held; fights to

ex>-

Nov. 10.

Price—$41 per share. Proceeds—To in¬
capital and surplus.
:
-

viz: Nov. 13, $5,310,000; and
bidders: Halsey, Stuart &

announced

Aug. 13 it

will sell late this

company

may

run

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston

preme Court

Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.

;

•

Pacific Gas & Electric Co. (12/2)
Oct. 20 it was announced that the
company
sale of $50,000,000 first refunding
loans
be

and

for

construction

Pacific

announced

company

(11/18) /

plans to issue and

sell

$80,000,000 of 32-year debentures due Nov. 1, 1990.
construction program.
Underwriter—To
be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.:
Bids—Expected to be received on Nov. 18.
Proceeds—For

Pacific

Telephone & Telegraph Co.'
was reported company plans to offer to its
preferred stockholders 1,594,604 additional

and

common

stock

the basis

one

new

for each

eight common or preferred shares held. Price
—At par ($100 per share). Proceeds—To
repay advances
and to. reimburse the treasury for capital expenditures
previously made. Underwriter—None. Control—Of the
832,000 shares of 6% preferred stock (par $100) and 11,-

936,835 shares of common stock (par $100) outstanding
of Dec. 31, 1957, there were owned by the American
Telephone & Telegraph Co. 640,957 preferred shares and
10,790,943 common shares.

Co.

Bids—Had

ceived

been

scheduled

re¬

Sept. 16, but on Aug. 26 it was voted to post¬

conditions.
-

was

announced

that

company

;

Midland Enterprises, Inc.
March 28, company announced

it plans to issue on or
before Dec. 31, 1958 $3,200,000 of first preferred mort¬
gage bonds. May be placed privately. Proceeds — To
repay hank loans and for working capital.

plans

early

finance construction program and
loans.
Underwriter—To be determined

bank

Public

Service

repay

com¬

Dec. 10.

Electric & Gas Co.

Sept.

24 it was announced that this subsidiary of
Tennessee Gas Transmission Co. has applied to the Fed¬
Power Commission for permission to issue first

and

notes

sell

bonds

amount

plans to issue

first

mortgage

(about $10,000,000) in the latter part of this year
-early 1959. Proceeds — To repay bank loans.

Inc.; Merrill Lynch, Pierce, Fenner & Smith and Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
Moore-McCormack Lines, Inc.
March 24 it was announced company plans to issue and
•ell $24,000,000 of government insured bonds secured by
first preferred ship mortgage on the liners S. S. Brasil

and S. S.

Argentina. Underwriters—Kuhn, Loeb & Co.
and Lehman Brothers, both of New York.
Offering —
Postponed because of uncertain market conditions.
Narda Ultrasonics

Corp., N. Y.

Sept. 8 it was reported that the company plans a regis¬
tered secondary offering of 60,000 shares of common
stock (par 10 cents). Proceeds—To selling stockholders.
Business—Manufacture of ultrasonic equipment. Control
—The company is controlled by Narda Microwave Corp.,
N.

Underwriter

—

was

announced

that the

company

has

de¬

ferred

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc., Blyth & Co.,

the

New

Fund

York

State

Su¬

Proceeds—

the

American

Chemical

Society. Underwriters—Expected to be Leh¬
Brothers, Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Smith, all of New York. Offering—
Expected in November.

★ Valley National Bank, Phoenix, Ariz.
Oct. 15 the directors recommended that
stockholders on.
Oct. 2.8 be asked to
approve issuance and sale by share¬
holders of about 102,000 shares of capital stock

(par $5)

the basis of

one

new

share of stock for each 15 shares

now

outstanding—subject to concurrence by the U. S.
Comptroller of Currency. Price—To be set later (ex¬
pected to be around $35 per share).
:,
.

Venezuela

(Government of)
July 1 the Government announced that Kuhn, Loeb &
Co. and Kidder,
Peabody & Co., both of New York, have
been selected as financial advisors to
develop a financial
program for the country.
As a first step in the pro¬
gram a short-term credit is

being negotiated between the
cooperation with the two investment
banking firms and a syndicate of commercial banks in
the United States, Canada and the United
Kingdom.
The three institutions which are to head this
government

syndicate

The Chase Manhattan

are

Bank of New
&
be

Bank, The First National City
York, and Bank of America National Trust

Savings Association.
the fiscal

new

The Chase Manhattan Bank will

agent for the credit.

The

amount

of the

financing involved is in the neighborhood of $250,-

000,000.

The purpose is to restore government balances
which have been reduced by the repayment of excessive
short term obligations previously incurred.

Dealer-Manager—Harriman Ripley & Co.
Inc., New York.
* •
'
'
Wisconsin
March 17 it
and sell

temporarily its plans to market $6,500,000 in bonds

Proceeds—For repayment of short-term bank loans and
for construction program. Underwriter—For bonds to be

named

later

date.

Registration—Expected late in October.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Glore,
Forgan & Co. and Blair & Co. Inc. (jointly); White, Weld

Co.; Equitable Securities Corp. Last preferred financ¬
ing was done privately.
Southeastern Fidelity Fire Insurance Co.

Aug. 26 it was announced that the company in all prob¬
ability will offer additional common stock to its share¬
holders in the

tions.

Office

near

future.

197
Underwriter—None*
—

Proceeds—To expand opera¬
Auburn Ave., N. E., Atlanta, Ga.

Southern Bell Telephone & Telegraph Co. (12/9)
Sept. 22 directors authorized the issuance of $70,000,000
•

35-year debentures to be dated Dec. 1, 1958. Proceeds

—For construction program. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:

Halsey,

Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Tenta¬
tively scheduled to be received on or about Dec. 9. Reg¬

istration—Expected in mid-November.
9

shares
Stone

stockholders
of

authorized

Light Co.

announced that company

plans to issus

$10,000,000 of first mortgage bonds. Proceeds—

bidders: Halsey, Stuart & Co. Inc.:
Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co.

(jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly)*

The

First

Boston

late in 1958

Corp. Offering—Not
early in 1959.

Wisconsin Public Service

expected

until

Corp.

March 4 it

was announced company plans to sell about
$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet been

decided

on.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler (jointly);
Kuhn, Loeb & Co., and American Securities Corp.
(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co., (jointly); Leh¬
man
Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); The First Boston Corp.; White, Weld Jb
Co.; Kidder, Peabody & Co.

Worcester Gas Light Co.

Aug. 18 it

was reported that the company plans the sale
$5,000,000 first mortgage bonds. Proceeds—For con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.;- Estabrook & Co. and Coffin & Burr, Inc.
(jointly); Kidder, Peabody & Co..and White, Weld &
Co. (jointly). Offering—Expected this Fall.

Southern Colorado Power Co.

May

Power

was

To retire bank loans and for construction program. Un¬
derwriter — To be determined by competitive
bidding.

determined

announced the company

undetermined

and/or preferred stocks. A bank credit of $6,000,000 has
been arranged — in lieu of the long-term financing.

Montana-Dakota Utilities Co.
and

with

Research

Probable

Joseph Light & Power Co.
19

$111,-

000,900.
Underwriters — Stone & Webster Securities
Corp. and White Weld & Co., both of New York.

was

St.

stock.

common

Proceeds—To build pipe line system to cost about

March 24 it

rests

(expected within two months).

Petroleum

ferred share.

used

eral

Midwestern Gas Transmission Co.

unsecured

stock

common

petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co. and Drexel
& Co.
(jointly); The First Boston Corp.; White, Weld & Co.

Proceeds—To

March

bonds,

issue of

Virginian Ry.
V
Aug. 26 the directors approved a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$10) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug. 1, 2008 on the basis
of $11.50 principal amount of debentures for each
pre¬

registration of $50,000,000 28-year bonds.

(12/2)
Sept. 22 it was reported that the company plans offering
700,000 additional shares of common stock, and plans to
apply to the State Public Utility Commission seeking
exemption from competitive bidding. Underwriter—May
be Merrill Lynch, Pierce, Fenner & Smith.

mortgage

public, the proceeds of which
between $50,000,000 and $60,000,000. Approval

Bids—Expected to be received

tentatively

this refunding program because of present market

pone

* Philadelphia Electric Co. (12/10)
Oct.

reported that

be offered to the

transaction

the

Telephone & Telegraph Co.
was

•

pro¬

determined

by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.
and The First Boston Corp.
(jointly); Blyth & Co., Inc.
Bids—Expected to be received on Dec. 2.
Aug. 22 it

expected

man

plans the
mortgage bonds. Pro¬

bank

the

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds—To redeem a like amount
of 4%% debentures due November, 1992. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &

was

soon

Underwriter—To

been

;

will

retire

Bids, had

Universal Oil Products Co.

Illinois Gas Co.

was

been postponed.
Sept. 30, 1958.

$10,000;000 mortgage bonds but on Sept. 12 it was
stated that immediate financing will not be
necessary.

shares of

14 stockholders approved, among other things, an
offering of 6,000 shares of additional capital stock (par
$12.50) to stockholders of record Oct. 15 on the basis of

termined by competitive bidding.Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Of¬

Union Electric Co., St. Louis, Mo.,
March 28 it was announced company plans to market
about $30,000,000 of common stock in the latter
part of
this year or in the first quarter of 1959.
Proceeds—For
construction program.
r

year

common

Oct.

(12/18)

$110,000,000 of

To refund outstanding
Underwriter—To be de¬

—

fering—Has

Inc., Salomon Bros. & Hutzler.

Aug. 22 it

New York

(11/13)

cates due from l-to-15
years,
Dec. 18, $6,450,000. Probable

For

Lehman

—

Ry.

35-year debentures. Proceeds
$100,000,000 4%% debentures.

about

Bids will be received this Fall
by the company for the
purchase from it of $11,760,000 equipment trust certifi¬

gram.

Sept, 17

Corp., New York.

Norfolk & Western

ceeds—To
•

mission authorized the company to issue
<

prevailing
common stock:

market conditions. Underwriter—For
any

com¬

For any common stock:

Hilliard

financing will be required for construc¬
The man¬

tion expenditures for the balance of this
year.

The First Boston

Kentucky Utilities Co.

Southwestern Bell Telephone Co.
July 10 it was announced Missouri Public'Service1 Com¬

that approximately

sell $10,000,000 of first mortgage bonds due 1988. Pro¬
ceeds—For construction program.
Underwriter—To be

additional

100,000

stock (par $50).
Underwriters—
& Webster Securities Corp. and Paine, Webber,
preferred

Tackson & Curtis.

With Francis I. du Pont

With Hornblower & Weeks

Mann & Gould Adds

Now With Cruttenden

Join Marshall Co.

(Special to The Financial Chronicle)

(Special torTHE Financial Chronicle)

(Special to The Financial Chronicle)

OMAHA, Neb.—Roy L. Greene
is now with Francis I. du Pont &

CHICAGO,
is

Co., Securities Building.

111.—Zafe G.

Zafer

with Hornblower & Weeks,

134 South La Salle Street.

With Powell & Co.
v

now

Rachlin Opens Office

(Special to The Financial Chronicle)

Robert Rachlin is conducting

•

SALEM, Mass. Kenneth G. Kuell
with

Mann

Gould,
Washington Street, members
the Boston Stock Exchange.
now

70
of

Joins F. L du Pont Staff
a

MINNEAPOLIS, Minn.—Thomas
FAYETTEVILLE, N. C. — Kelsecurities business from offices at H.
Thompson III has joined the
linger R. Cotton has become asAT
_
,
■■

sociated with Powell & Company, 12 East
Inc., 120 Anderson Street.
City.

;

..Jmt

MILWAUKEE, Wis. — Herbert
Taylor and Peter Y. Taylor are

M.
now

associated

with

Crutten¬

den, Podesta & Co., 209 South La
Salle

York

Street, members of the New
and

Midwest

changes. Mr. Spicer

Stock

Ex¬

now

with The Marshall

Company,

765 North Water Street.

With Bear, Stearns & Co.
(Special to The Financial Chronicle)

was

formerly

staff of Francis I. du Pont & Co.,

with Bache & Co. and Continental

CHICAGO, 111.—Roy F. Carlson
is now with Bear, Stearns & Co.,

Foshay Tower.

Illinois National Bank & Trust Co,

135 South La Salle Street.

41st Street, New Yoik

CHICAGO, 111. —Robert Spicer
is

The Commercial and Financial Chronicle
46

(Special to The Financial

Chronicle)

inger has been added to the staff
of Straus, Blosser & McDowell,
39 South La Salle Street, members
Stock

Exchanges.

(Special to The Financial

differences over the callback
employees to work.
Nevertheless, "Ward's" stated, Chrysler Corp. programmed
G0% improvement over the previous week's output.
It commented further by saying that Ford Motor Co., with
.

Last week's

car output totaled 45,003 units and compared with
34,834 (revised) in the previous week. The past week's production

assembly underway Wednesday, and
eight Ford division plants set for Saturday work, jumped pro¬
this week.
'
American Motors bolstered

:"1 /

duction 25%

CHICAGO, 111—James E. Lewis
has become affiliated with Wm.
& Co., 39 South La

Salle Street;

total

week ago.

Last week's car

(Special to The Financial

& Co.

publication noted that the three-millionth car -'
will be produced early this week.
.
y

of 1958

Chronicle)

William A.
Burke, Jr. has been added to the staff of Draper, Sears & Co., 50
Congress Street, members of the
BOSTON, Mass.

New

—

Ex¬

York and Boston Stock

changes.

With Hornblower & Weeks
(Special to The Financial Chronicle)

SPRINGFIELD, Mass.

Evelyn L. Yusko has joined the
staff of Hornblower & Weeks, 95
State Street.

Mass. — Charles J.
Elliot H. Cole are
connected with Keller Bros.

BOSTON,
Auditore
now

and

Securities Co., Inc., Zero Court St.

Joins F. L. Putnam & Co.
^Special tp The Financial Chronicle)

;

BOSTON, Mass. — Edward F.
Costigan has been added to the
staff of F, L. Putnam & Co., Inc.,
,77 Franklin Street, members of
the Boston Stock Exchange.
>
,

With John G. Sessler Co.
(Special to The Financial Chronicle)

BOSTON, Mass.
Mantineo

has

Andrew A.

—*

affiliated

become

with John G. Sessler Co., 10 Post
Office

Square.

not

among

are

Vayer has been added to the staff
of Jay C. Roberts & Co., 18 Ver¬
Street.

Producers

relighted

additional

and

furnaces last week

FLUSHING,

Carmi is engaging

Drive,

East.

Y. — Moshe
in a securities

was

with The First Republic

formerly
Corpora¬

R. T. Farmer Opens
SEATTLE, Wash.—Ralph

T.
securities

Farmer is engaging in a
business from offices

3732

Thirty-seventh, Southwest.

Felsette Opens Office
LOS ANGELES, Calif.—Robert

64,

9 points.

Commercial

Liabilities
week's

ffym

name

and

W. S. Waller Mgr.
SCtfKNfeCTABY, N. Y.

The

American

Iron

before.

and

Steel

Institute

that

announced

.^--4.

„

—

The

manager

the

firm

Bache

Schenectady,

the

investment

Co.,

127

Wall

Street,as- been announced. He
wae formerly
assistant manager
under the Iate Frank Stark.

288

in the

week

$5,000 or more were involved in 233 of the
slight increase from 230 in the previous week
last year.
Small failures, under $5,000 climbed to 55

229

week

:
-

production is based

on average

lambs.

The

of 31

index represents the, sum total: of the price'^r pound
foodstuffs and meats in. general use and its chief func¬

raw

tion is to show the general trend of food, prices at the wholesale
leveL
*
*
■ t
\
■
; ■» i :

•

For

the

week

;

?
..

Oct.

output -decreased

dipped to 2-78.00

There

improved
•

9,122

revenue

cars, or

freight in the week ended Oct. 11, 1958

1.3% above the preceding week.

Bradstreet, Inc. reported.

Most grain, pricey were close to those of the prior week.. A

buying and the expectation that further

was

slight

somewhat.

inctease

Prices

in
corn

trading in lye hhd prices
held steady and Teceints

were!

down moderately frdm the preceding week.soybeans lield unchanged with prices steady/ ;

Interest

Leadings Rose 1.3% in the Week Ended October 11

Loadings of
were

gains would occur in the coming weeks helped boost wheat -pr/ces
fractionally over those of a week earlier. A noticeable rise in
exports to India is anticipated.

Car

-on
October 13 from 278.64 in the prior week
noticeably below the 280.30 of the similar date a year

moderate rise in export

Gommodity Price Index Declined Moderately
Last Week

Lower prices of most livestock, lard, rubber and steel scrap
week held the -general commodity price level
-moderately
below that of a week earlier. The daily wholesale price index

ago, Dun &

distributed by the electric lights

18,- -1958

...

last
-

weekly production for 1947-1949.

19,000,000 kwh. under that of the previous week but recorded an
increase of 364,000,006 kwh. above that of the comparable 1957
week and 715,000,000 kwh, above that Of the week ended Oct.

Declined Further ill Latest Week :

ended

Wholesale

„

industry for the week ended Saturday, "Oct. 18, 1958
was
estimated at 12,048.000,000 kwh., according to the Edison
Electric Institute. Output held to the lower trend the past week,
-

-•

*./:

♦Index of

"the wholesale food price index, conTpiled by Dun & Bradstreet, Inc., fell to a new 1958 low for the third consecutive week.
It stood at $6.23 on October 14, down 0.8% from the $6.28 of the
prior week, but up 2.0% over the 86.11 of the comparable date last
year. This was the lowest level since Nov. 5, 1957.
* *
"> '
' '
Higher in wholesale cost last week were flour,"wheat, cheese,
cocoa
and eggs.
Lower in jiriee were corn, rye, barley, hams,
bellies, lard, butter, coffee,r cottonseed oil, tea, steers, hogs and

the

*113.0% and production 1,816,000 tons. A year ago, the actual weekly production
was placed at 2,052,066 tons, or 127.7 %^r
'
'

20, 1956.

appointmtftt of William S. Waller

rose

Third Consecutive Week

operating rate of steel companies will average *125.6% of steel
capacity for the week beginning Qct.: 26, 1958, equivalent to
2,018,000 tons of ingot and steel eastings (based on average weekly
production for 1947-49) as compared with an actual rate of !:li24.7%
of capacity, and 2,003,000 tons a week ago.
^

The amount of electric energy

of Kayser & Company.

failures

casualties,

;

and power

BIRMINGHAM, Ala.—Leo
Kayser, Jr. is engaging in a secu¬

Moderately, the Past Week

industrial

and-was

rities business from offices in the
Brown-Marx Building under the

and

■

ended October 16 from 271 in the .preceding week, Dun & Bradstreet, Inc. reports. This moderate increase lifted casualties above
the 258 occurring in the similar week a year age and ;the 254 in
1956. .Failures were-4% higher'than their prewar total of 277
.in the comparable week of 1939<>
>
T--. ;
'

Electric Output

Business Failures. Rose

are

Shepherd Avenue.

Kaycer Co. Opens

preceding week and a reduction from the 7,779,-

rels below the preceding week and compared with. 1,198:500 barrels
last year....J
l-'.1. ,v.;.
■[ <■
>
■
J

•from..41.

For the like week a month ago the Irate was

Opens

curtailed ^during
daily, down 132,000

were

7,507,'000-barrels

86,200 barrels from a week earlier. The year-ago Tate was
6,811,615 barrels daily. ; 7 i- i
i'.r *
3, v;
At 1,019,700 barrels daily, crude oil imports were 285,300 bar<-

lagging.. Last week, "Steel's" composite on
the prime grade held at $42.33.
A month ago, it was $43. Mill
inventories are still substantial, partly because some buyers bought
small tonnages in late summer.
As stocks dwindle, steelmakers
are also relying on home scrap and hot metal.
"

week

-BROOKLYN, N. Y.—Nathan

averaged

-ago>and 29 in 1957. Seventeen businesses suc¬
Wheeling at 82, no change; Detroit at'81:5,:
cumbed with liabilities in excess of $100,000, falling from 27-Jh
up 3.5 points; Cleveland^ at 80, up 5.5 points; Cincinnati at 79, up 5 ,
this size group in the preceding week. '
\
k
;=•
points; Buffalo at 78, up 20'^«>4»HWeatern district at 75, no
change; Eastern district at 70, up 2 points; Piff^bfgh-at-GSv^r-up-.^Whtih*9uIe-F<)adJBiii^Index Strikes New 1958 Low for the
1.5 points; Birmingham at 66, up 0.5 point, and Youngstown at

Output for the week beginning Oct. 20, 1958 is equal to about

Goldstein is engaging in a securi¬
ties business from offices at 641

industry's refinery operations

74.8% of the utilization of the Jan. 1, 1958 annual capacity of
140,742,570 net tons compared with actual production of 74.2% the

N. Goldstein

oil

week'.' Runs

of a year ago.
r
' /V ■: ;
r
;
GrudC oil production averaged 7,013,585 barrels daily* a drop

the,

securities

Heavy fuels,

used by industry, were

are

The

business from offices at 1680 North
Vine.
'

conducting

000-barrel pace

districts—they showed no change.
District rates the past
St. Louis at 97.5% of capacity, up 3.5 points; Chicago

Scrap prices

tion.

Felsette is

barrels from the

at 84.5, up 0.5 point;

business from offices at 66-09 Park

■

down 853,000 barrels. At 68,742,000 barrels, they compared with 58,103,000 barrels a year ago.
Light fuels, including those used in the home, gained 3,270,000
barrels to
187,845,000 barrels at which'level they'were some
19,000,000 barrels under last' year.' ;
7: v
'
'

week follow:

Moshe Carmi Opens

v.;1;y• 'h's

Supplies of heating oils showed mixed changes.
such

ingot rate jumped 2,5 points to 74% of capacity, a new high for
1958. Output Was about 1,997,000 net tons of steel, largest of any
week since that ended Nov. 3, 1957.
Rates were up in all but
two

and/

began, consumers cut steel inventories
with the first signs - of better business, they
are hastily building stocks.
So the recovery in steel production
is faster than it is in the metal consuming industries./

(Special to The Financial Ohiionicle)

SPRINGFIELD, Mass.—Ray R.

with 177,383,000 barrels on Oct. 4 last year.

the

(

Motor fuel in storage at the week's end amounted to 172;482,(000 barrels compared with .173,481,000 barrels a week earlier

fastener manufacturers

1957.

light,

makers, converters and
most active buyers.
When the recession

/J/...;

1958

Institute reported the past week.

flat-rolled item, that is cold-rolled
sheets, tin plate and galvanized products, is so great that many
mills are running close to capacity. Leading consumers are auto¬
motive, appliance and container industries.
Cold-rolled sheet
producers are booked for November and into December.
Pipe sales are spotty, since hard-pressed for cash, oil pro¬
ducers buy only what is indispensable and rely on distributors
for quick delivery.
y
Hot-rolled Carbon bars are once again in demand and auto¬
the

for

Week Ended Oct. 11, 1958

000.barrels

Demand

; :

;

Overfall-gasoline stocks for the cduntry-at-large dropped; 999,-;
during the week ended Oct. 3, the American Petroleum *
/-'J 7
:
•*

100% operations unless hedging ~
threatened steel strike starts.
Spot strikes in the auto industry are affecting car production
and delaying steel orders with auto assemblies less than half of '
what they were a year ago, but "Steel's" industrial production 1
index is at a 1958 peak and stands within three points of where f,
it was a year ago.
It is based on steel output, electric power
output, freight car loadings and auto assemblies. ;/
With many plants still strikebound, automakers are ordering
steel sparingly and asking suppliers to delay shipments.
It is
estimated that General Motors Corp. has delayed about two weeks'
demand will not require

tonnage, mostly cold-rolled sheets.

Gasoline Stocks Declined in Week Ended Oct! 3

high cost facilities unless they have;

use

This compared with 11,878 in the previous

below the like week in

10.2%

drastically.' Now

Jay C. Roberts & Co. Adds

non

will

by 785

shipments of 469 reporting mills in the week ended
were
1.0% above production, - according to the.
"National Lumber Trade Barometer:"
In the same period new
orders were 12.8% below production; Unfilled orders .amounted >
to 39% of stocks." Production was 5.8% below; shipments 6.7%
below and new orders were 3.1% below the previous weekVand*

11,

Producers

increased

Lumber

Oct.

estimate, but they do not think peak operations next year
The reason, about 10% of the industry's capacity

and

output

Shipments Rose 1.0% Above Output in the

;

will exceed 90%.

against

(Special to The Financial Chronicle)

Lumber

■

obsolete.

week
*

units,

Two With Keller Brothers

year-end, "Steel" magazine predicted on Monday of this week;
Signs of recovery are so compelling that even conservative 5
producers are getting bullish, the metalworking weekly added. <
A lew weeks ago, 75% was the most optimistic forecast. *
Steelmakers who challenged the prediction that 1959 output
would be at least 110,000,000 ingot tons are beginning to accept

while truck

of capacity before

reach 85%

operations will

Steelmaking

vehicles

10,169

in the United States.

the

that

Mrs.

Week at 74.8% of Ingot Capacity

above that of the previous

rose

week and 21,064 a year ago.

Scheduled to Exceed Level of Previous

Steel Output

output

during the week.:In the corresponding week last year 72,180 cars
and 21,084 trucks were assembled.
V *
Last week the agency reported there were 12,663 trucks made

The statistical

With Draper, Sears

increase
output, states

or an

'Ward's.";

turning out Ramblers at an all-time peak rate, and will go for a
13% boost this week. Studebaker-Packard looked for a 16% rise
a

of cars and trucks amounted to 57,666 units,
10,954 units above that of the previous week's

•

last week by

schedules by

car

other manufacturers.

lour

Mercury getting 1959 model

Chronicle)

production for the week ended Oct. 17: -1958^
according to "Ward's Automotive Reports," was still crippled by
strikes at General Motors.
As a result, car output made only a
minor gain on the strength of 1959 model schedule buildups by
Passenger

Wednesday of last week because of

With William Tegtmeyer

H. Tegtmeyer

The State ol Trade and Industry

Midwest

and

York

New

the

Thursday, Octdber 23, 1958

Below Previous Week's Level

CHICAGO, 111.—Urban T. Len-

Automotive Output Last Week Hampered by Strikes ut
General Motors and Chrysler Plants Declined

Continued from page 4

Straus, Blosser Adds

;

(1710)

Loadings for the week ended OcL 11, 1958 totaled 686.138
cars, a decrease of 55,382 cars, or 7.5% below the corresponding
1P57 week, and a -decrease- of 137,069 cars, or 16.7% below the
corresponding week in 1956.

•

Although transactions

flour

were

light, pi-ices

''in

•' *
equalled

those of

the prior week.
Cocoa "prices declined steadily during '
IhO wefek in dull trading.
Although'new crops are expected to
reach the market shortly, rice" buying was sustained at a high
lfevei and prices matched those.of the prior v*eek. The preceding
week's level of sugar trading .was maintained and -eriees weie

steady.;
There

< *
was

considerable

decline

;

•

in hog

prices in 'Chicago

Volume 188

Number

5788

The Commercial and Financial Chronicle

expanded.
Lower^jpriees. resulted in an* appreciable
increase in hog trading. Cattle receipts rose noticeably over both
prior week "and the similar period last year.
The buying of
steers was sluggish and prices' Tell "substantially.
Although the
Salable supply of laipbs moved iip slightly during the week, purchases of lambs were unchanged.- Lamb prices were close to those
of the prior week; Following the decline in' hog prices, lard prices

»receipts
t
4

;
•

;

J dropped appreciably,
a

week earlier,

Although

t..

'•

ulated trading

•

■i

•

fout trading

was sustained
V '

•

at the

;

•Jamieson

moderately
\y '•
v;

South Beverly
New York

Drive, members of
and

Pacific

Coast

Stock Exchanges.

Joins

Company, First Na¬

has

become

associated

Salle

Street.

Mr.

Prusin

to Staff

WILMINGTON, N. C.—William

Bache &

Street.

with Mitchell Hutchins & Co.

Vaughan &

Company,

Planning
with

Co.

has

offices at

been

1620

Second

principal

CLEVELAND,

Ohio

advance in

108

—

South

Second

Roberson

now

with

Higgins, 300
Montgomery Street, members of

Wilson,

Johnson

noticeable

increases

the payment

($.50)

i958,

Street

Eaton & Co.
,

PHOENIX, Ariz.

DIVIDEND NOTICES

record November 14, 1958,

CONSOLIDATION
COAL

William T.

pany, with offices at 444 Camelback West to conduct a securities

business.

;With Westheimer Co.

improved during the week. The
occurred in purchases of industrial

URBANA,

Ohio —Fred

Paulig

COMPANY
at

meeting held today,

declared

a quar¬

terly dividend of 30 cents per share on
the Common Stock of the Company, pay¬

1958, to share¬
holders of record at th«r close of business
on
November 21, 1958. Checks will be
able

December

mailed.

12,

regular

3iy4tf

per

the 5% Con¬

vertible Preferred

declared

dividend of

quarterly
share

Stock has been

payable December 1, l953r

stockholders

of record

Novem¬

ber 15, 1958.

John Corcoran,
Vice-President & Secretary

October 20, 195S.

regular quarterly dividend of 30#
share

per

the Common Stock

has been declared

INTERNATIONAL

payable NdVelff*

ber

Eaton has formed Eaton and Com¬

j. :

New York 4, N. Y.

One Broadway,

The Board of Directors of

under

Opens

—

of a dividend of fifty cents
share payable December 5,
of Common Stock of

per

to holders

stockholders of

29; 1958, to

record November 15,

1958.

M. E. GRIFFIN,

HARVESTER

Secretary-Treasurer

the past week in re-orders for

Over-all textile transactions
most

The Board of Directors haa authorized

Thomas

management of Aubrey
Sampson and John K. Sharp.

suits and coats as retailers sought to replen¬
depleted stocks. Budgets for purchases of women's cruisewear
ar.d spring merchandise are expected to exceed those of a year
ago.- Orders for men's topcoats and suits moved up somewhat,
but volume in furnishings was sluggish.
Wholesalers reported a
moderate decline in the buying of children's fall apparel, especially

■

DIVIDEND

WALTER E. FOX, Secretory

the

ish

Common

(Special to The Financial Chronicle)

Co. has opened a branch office at

women's fall dresses,

Company

SAN FRANCISCO, Calif.—Don¬
ald

(Special to The Financial Chronicle)

buying of women's

sales i of
canned goods, baked goods, fresh fruit and vegetables and some
dairy products.
Interest in fresh meat and poultry remained

girls' dresses and skirls.

President

•

With Wilson, Johnson

the Pacific Coast Stock Exchange.

With Bache & Co.

f
,

formed

East

Street. Jack P. Kish is
of the firm.

declared

Stock

J
Form Atlas Planning
1 BROOKLYN, N. Y. — Atlas

noticeable rise

have

United States Lines

Trust, Company

gard & Co., Inc.

D. Bosse is now with Bache & Co.,
Fall, coats,, suits^and.;r plresse<5...
ipr, fashion. accessories,
National City East Sixth Buildmillinery- and jewelry* moved UP; appreciably . ';';Tbere was a marked - rfv• y rise in the cal! foi^lriehs1'topcpat3' arid suits;" Over-all sales of
men's apparel moderately exceeded that of a year ago. Best-sellers
Now With H. F. Swift Co.
in men's furnishings v/ere dress shirts, socks and handkerchiefs.
(Special to The Financial Chronicle)
Interest in children's merchandise lagged behind that of a year ago,
i. SAN. FRANCISCO, Calif. — Al¬
i;
Attracted by sales promotions, shoppers stepped up their
bert ;S. Lowe is now with Henry
buying of upholstered*• furniture; bedding and occasional tables
F. Swift & Co., 490 California St.,
and chairs during the week:'Slight year-to-year gains prevailed. members
of
the
Pacific
Coast
Retailers reported substantial gains from both the prior week and
Stock Exchange.
last year in linens, draperies and carpetings. Purchases of tele¬
vision sets, laundry equipment, refrigerators and lighting equip¬
>
New Hirsch Branch
\
ment were sluggish during the week, but were close to those
FT. PIERCE, Fla —Hirsch
&
of last year.
*"
"
*
"•

Trustees of Title Guarantee and
^

the past he was an officer of Non-

[Post Office Avenue.

[

♦IVlbEN* MOftCf

WILLIAM- B. DEATLY

Mr.

;

was

snare

Co., 140 South Dearborn
Bangs was formerly

•H. Thornton has been added to the

Trust Cembam

■■■

a
dividend
of
32l/2 cents per
designated
as
the fourth regular
quarter-annual dividend for 1958. payable
Nov. 21> 1958 to stockholders of record on
Nov. er 1958.

D. A. W. Bangs Joins
Bache & Company Staff

rstaff

Stock

CHICAGO, 111.—Donald A. W.
Bangs has become associated with

•

There

Midwest

GUARANTEE

tottogr

was

(Special to The Financial Chronicle)

Vaughan Adds
t

Co.,

connected

(Special to The Financial Chronicle)

close to that of a week earlier.

the

Building,

become

Wyandotte Street.

collected by Dun & Brac|street, Inc. show/ Regional
comparable 1957 levels by the following
percentages: New England States6 to -f'10%; Middle Atlantic
and West North Central ^5 to +9; East North Central arid South
Atlantic -f4 to +8; Mountain -f 2 to -f-6; East South Central and
'/Pafcific-Criast -t-1 to +5 and West South Central States 0 to +4%.

;

TITLE

with

formerly with A. G. Becker & Co.,
Incorporated.

with Stowers and Company, 4725

below -U* year ago, according

appreciable

Commerce

Doyle, O'Connor

Alexander has

spot estimates

another

members

CHICAGO, 111.—Robert S. Prusin

KANSAS CITY, Mo.—Ewell F.

estimates varied from the

;

staff of Fulton Reid

Inc., Union

(Special to The Financial Chronicle)

associated with

now

(Special to The Financial Chronicle)

■!(

Wednesday of last week was 4 to 8% higher than a year ago,

reported

the

Exchange.

Joins Stowers & Co.

7'//'vr*vV-.;•
The total dollar volume of retail trade in the period ended

Grocers

CLEVELAND, Ohio —Jotaft B.
Dempsey, Ji ha» been Added to

Doyle, O'Connor & Co., 135 South

by Columbus Day

Apparel stores reported an upsurge in the

HILLS, Calif.—IrvB.; Crachlis has joined the

ing

Keicft Adds

(Special to The Financial Chronicle)

BEVERLY

Allyn

tional Soo Line Building.

Extensive

but volume was
to scattered- reports.

.v.

MINNEAPOLIS, Minn.—George

«W. Fornell is

Sales Promotions

FUKon

(Special to The Financial Chronicle)

•

Columbus Day sales promotions stimulated con¬
sumer buying the past week and volume rose noticeably above that
of a year ago when the holiday fell "on,.Saturday.
The sharpest
yeaivtoryear gains occurred in women's apparel, housewares and
furniture' There were ^further., gains in sales of new passenger

Walter

—

with

With Jamieson & Co.

•

For the season through
October 7,-exports were estimated at 610,0()0 bales compared with
770,000 during the corresponding period last season.
' r
:
: ::

cars,
•

Mass.

now

—

...

close to that of

55,000 bales in the similar period last y ear;

\r~:

(Special to The Financial Chronicle)

the

begihnlh^dl1 the4#««l^ Cotton volume slipped

Trade Volume Aided in Latest Week

Joins Reeves Staff

[Federal Street.

The September forecast,wa? 12,105,000 bales.
Exports oi; lint cdttpntforr the week ended jOctl 14 amounted to
about 64,000 bales/}; according to the \ Cotton Exchange Service
Bureau. This compared with 29,000 bales?iri the prior week and
11,675,000 bales.

IP?
and-Company, Incorporated, 30 staff of Daniel Reeves & Co., 398

prior week on the New York Cotton Exchange. The United States
Department of Agriculture reported the crop outlook/as of Oct, 1>
at

BOSTON,
Palmer -r,
is
-

of the period and prices finished slightly below the

the end

CSpeciai to The

crop forecast stim-

Allyn Co.

Financial Chronicle)

W itti A. t.

the

(1711)

COMPANY
The Directors of

International

Harvester Company have

declared

quarterly dividend No. 161 of one
dollar and

seventy-five cents ($1.75)

per share on the
able December

preferred stock, pay¬
1,

1958,

stock¬

holders of record at the close of

business

November 5, 1958.

GERARD J. EGER, Secretary

is now representing Westheimer
by automotive producers.:, Boosted by a marked rise in
broadcloths, total sales of cotton gray goods climbed substmitially ^,. and~Cofcnpany of Cincinnati.
at the end of the week.. Trading in woolens^arid worsteds was

fabrics

;

sluggish; but Interest in carpet wool expanded somewhat. An
appreciable rise occurred in incoming orders at dyeing and finish¬
ing plants in the mid-Atlantic States.

INTERNATIONAL

rise in volume in
fixtures. Sales of
refrigerators and dishwashers matched those of the prior week.
Some markets reported substantial gains from a year ago in furniture volume, particularly bedroom sets and upholstered living
room chairs.
There were substantial gains in bookings in towels,
linens
and slipcovers, while the call for floor coverings >'and i«

HARVESTER

Appliance wholesalers reported a slight
sets, hi-fi equipment and lighting

■

draperies was sluggish.Wholesale

food

;

volume

edged up last week, with

Edison

Directors of International

The

Harvester

Company have

California

Company

DIVIDENDS

declared

The Board of Directors has

quarterly dividend No. 175 of fifty
cents (50O per share on the common
stock, payable January 15, 1959, to

authorized
the

the

payment

following quarterly divi¬

dends:

stockholders of record at the close

principal

gains iri canned goods, fresh produce and frozen foods. Interest
in fresh meat, poultry, cheese, eggs and butter remained,at^the
level of a week earlier.
'
} ;

Southern

COMPANY

^ television

of business

GERARD

cumulative preferred stock,

December 15, 1958.

J. EGER, Secretary

4.08% series
*-4Wvldsnd bib4. 35

tSNt. saftijufr
cum ul at i
■"

stTort^

.. .

vymtfi* r e"s' stock-,

4.24% series
Dividend No. 12

country-wide basis as taken from ^
the Federal Reserve Board's^ index for the; week ended Oct , 11, V*'
1958 advanced 4% above the like period last year. In the preced¬

2£VV cent*

Department store sales on a

IS0UTHEBN
UTILITIES COMPANY

increase of 7% was reported. For the
Oct. 11, 1958, a gain of 2% was registered. For v,

per

share;

cumulative preferred stock,
4.79% series :
4
Dividend No. 4
*

29%

cents per shore;

ing week, Oct. 4, 1958 an

ctmhilative preferred stock,

four weeks ended

4.88% series

11, 1958 a decrease of 1% was re¬
ported below that of 1957.
•
.• *"
,:
Retail trade sales volume in New Ywk City the past week
made substantial gains aided by CoI«mbii6 Hay promotiens.
According to trade observers, sale rose 19 to 15% above the
the

Dividend No. 44

period Jan. 1, 1958 to Oct.

level of the like

period

30'/] cents

PIVIDKMO NOTICE
haa declared thf
following regular quarterly ^irid«nd|:

The Board of Director;

35% oqnta per share on iff

a year ago.

Board's indent, dep^rtippptja
store sales in New York City for the week ended Oct. 11, 1958
showed an increase of 5% from that of the like period last year.
In the preceding week, Oct. 4, 1958 an increase of 15% was re¬
ported. For the four weeks ended Oct. 11, 1958, an increase of
5% was noted. For the period Jan. 1, 1958 to Oct. 11, 1958 an in¬
crease
of 2%
was
registered above that of the corresponding

i%% Preferred Stock ($30 par)
44 cents per share on its

According to the Federal Reserve

period in 1957.

$1.76 Conv. Preferred

Stock' ($30 par)

82 cents per share on hs
Common Stock ($15 par)

per

share.

TjtiD above dividends sir? pay¬
able November.30, 19.50, to
stockholders of record No¬
vember 5. Qhecks wilt be
mailed from the- Com
fanfs'
office in Los Angeles, No¬
vember 29.
p. c.

hale,

Treasuretr

October 16, 1958

payable December 1, 1958,
stockholders pi record Npvember 14,

all dividends
to

1958.

EDWARI) L. SRUTTS,
October

17,

193(1

CMrmen
%

The Commercial and Financial Chronicle

(1712)

Thursday, October 23, 1958

BUSINESS BUZZ

WASHINGTON,

C- — The
already

More and more retired

Union.
citizens

making plans to conduct the
1960
decennial census, which

sunshine

the

task

biggest

the

will

has yet undertaken. The
Department of Commerce will

agency

the

ask

-job.

include

also

will

which

to pro¬

census

the

for

funds

vide

Congress

the "census
clock''
in
the Department
of
Commerce Building tallied the
other.: day

The

The number on the

175,000,000.
chart

population

States

United

increases

where
than

settling in those
People every¬
more sun conscious

are

every

one

Benjamin Newman — John
Wiley & Sons, Inc., 440 Fourth
Avenue, New York 16, N, Y.,

—

states.

are

Only the shortage of
apparently will be a ma¬

ever.

water

$12.75.

jor barrier to the future growth
of
Southern
California,
and,

Can

;

stepped

underway
water

represents the av¬

clock

The

net effect on the

erage

popula¬
moment.

This unit of change is based on

seconds, one
death each 20 seconds, one im¬
birth each

one

and

utes,

1:% min¬
emigrant depar¬

arrival each

migrant

one

Reprint

eral

Important to Industry
Census

that

the

the popula¬
United States will

continues,

growth
tion

the

cording

1967,

200.000,006

reach

rate

present

ac¬

the Census Bureau

estimates.
Of

several things could

course

the imme¬

the census in

affect
diate

full scale

war

would have a tre¬
Also

affect.

mendous

Certainly a

ahead.

years

•

affect.

Stanford Research Insti-

The

•

has

ftute

with

research

nationwide

some

after

observations

pertinent
!

come

program.

of the report said the

.Authors

"research would indicate that

the

birth rates in the United States

will decline by 1975
levels to levels of
1946. The average for the 197075 period will be about 4,750,000
probably

from present

births

are

expected to continue to de¬

cline

reaching

slowly,

by
of

immigration

Net

1975.

estimated at

level

thousand

of about 8.8 deaths per

annual average

225,000 persons.
The

Stanford Research Insti¬

tute estimated the 1975 popula¬
tion at

total of 221,794,000. Of

various

the

sections

United

States, the authors pro¬

jected

the

Pacific

region

ton, D. C.

im¬

great

business and indus¬
Many an
fu¬
expansion of business will

Switzerland—Supplement

ture

questionnaires"

1959

mineral

and

the operations

of retail

lected

29,439,000
of

crease

76%,

during 1958

1959

agriculture will be

census

carried out

Political Impact

are

The first decennial cen¬
taken in

of the

population census will be
importance to governments—

local, state and Federal—as well
as
to
business
and
industry.
There will be a reapportionment
of the membership in the House
of

Representatives of the

88th

affected

by the

The

IviQ

members,

while

States

can

pro¬

will.

states

for the
simple reason that the gains are
not equal to the national aver¬
age growth. Reapportionment is
based on a longtime law fixing
number

House

seats

for

the

increase

Massachusetts
w

ould

each

each lose

the

and

lose

Arkansas

two.

Some

central

by J

field

making

says

he plans next

ask

been

added

Becker

enough
on

take

finished

the

members

Midwest

Stock

buys

cars a

year.

"Transportation? Sixteen
cent

Co.

Incorpo¬

York

New

and

Exchanges.

ucts.

power

than

Boston combined."

The cabinet

officer, in short,
that.is a

With

declared

know

that

that, the

farmers
controls .fcrebd con¬

and. tll£

■SgrtTulture

141

West Jack¬

Shillinglaw, Bolger

(Special to The Financial Chronicle)

CHICAGO, 111.—Louis I. Behm
now
with Shillinglaw, Bolger
Co., 120 South La Salle Street,

greatest need in
today is to let the

farmer have greater freedom in

making his decisions without
Washington telling him what to
plant and how much to plant.

the

Midwest

Stock

Exchange,

York

State—Part

York

State

Commerce

New York State Department of Commerce, Albany,
N. ¥.

-•

Economic

Walter

Threat

fSpecial

to The Financial Chronicle)

CHICAGO, 111. -EdwardE.

Chrobot.

with

has

Lehman

become

associated

South

Brothers, 39

La Salle Street.. Mr, Chrobot was

formerly
with
First
California
Company in San Francisco and
prior thereto was with Hannaford
&

Talbot.

—

Leason—Comprehensive

study of the economic offensive
of the Soviet

Union—Gregory &

Sons, 72 Wall Street, New York
5, N. Y. (paper), $10.00.

Savings
Chart

Home

and
Book

—

Financing

Federal

Home

Board, Washington.

D.C.

With Lehman Brothers

II—

Review,

Loan Bank

$40
bflJjtfri
market
for
the
American economy.
However,
he

New

Optical Lenses and Equipment

Russian

members

declared

Co,,

Boulevard.

and

111.—Emmanuel
joined the staff of

per

gross

electric

has

Hentz

son

Fifty tons a
Electricity?
Agriculture

Management

Ivyhill Press, P.O. Box No. 9384,
Washington 5, D. C. — paper —
$1.

—New

CHICAGO,
Hochfeld

Chemicals?

year.

Cata¬

Money: A Problem in Public Pol¬
icy — Charles I. Stewart —The

(Special to The Financial Chronicle)

freight reve¬
is from agriculture prod¬

nues

uses

the

—

Optical and Ophthalmic Industries

year.

rubber to put tire

raw

American

(paper).

Joins Hentz & Co.

6,500,000

steel

nearly 6,000,000

the

•

rated, 120 South La Salle Street,

any

Agriculture

Rubber?

Association,
Inc.,
1515
Broadway, New York 36, N. Y,

staff

the

...

Young Workers Under 18, Today
and

Tomorrow—U-.

S. Depart¬
Labor, Bureau of Labor
Standards — Superintendent of
Documents, U. S. Government
Printing Office, Washington 25,
D. C. (paper), 200.
ment of

We have prepared

Report

comparing and evaluating

Studebaker-Packard

plans

year

Congress to provide
12,000 badly needed
post offices.
about

tons

Farmers

Bookshelf

logue of publications and films

government

are

for.the future. One of the major
needs of the Post Office Depart-.
merit are many new7 post offices.
Postmaster. Arthur B: Summer-

of the total

States

Agriculture

has

industry—nearly 15 bil¬
lion gallons a year. Are you in
steel?

Management

seat.

one

Washington

by 1975.

growing

petroleum than

vis

Because of the growing popu¬

13.5% of the total pop¬

California and Florida

farms.

York

CHICAGO, 111.—Jacob N. Mer-

•

New

ment

CSpecial to The Financial Chronicle)

Then he

"Have you investments in the
There are 12,000,-

trols.

for

all

the

Federal

depart¬

the'

ments, the Department of Agri¬
culture by virtue of its activities

the

and

Carl Marks

Congress, keeps

Co Inc

FOREIGN SECURITIES SPECIALISTS
20 BROAD

STREET

TEL: HANOVER 2-0050

are

lawrs

Botany Mills

new

fastest

added:

Sir Noel

—

University, Washington Square
Center, New York 3, N. Y.
(cloth), $2.50.

A. G. Becker Adds

best

your

customers are farmers."

Hall

lation, the various departments

b6£io increase

Fastest Growing States

erally but, "some of

Challenges

Frederick

Association—American Manage¬

nesota, Kansas and Illinois would

the Mountain region is expected

4.5%

three.

—

Modern

that

the farm states like Iowa, Min¬

ulation in the United States, and

pick

to climb from 3.5%

would

would each lose three seats, and

Sfoteg

population

According to the projections,-New
York
and
Pennsylvania

projections place the 1975
region

gain two seats.

South

is expected
froqi 32,529,000 to 45,300,000,
^iicf6ase ol 39.2%,

1975 to

population

12,850,000 by 1975,
of 30.6%
gnd thy

ulation

Pacific

state

No.

become

Texas and Michigan w ould each

The New Eng¬

East North Central

The

Florida

population, estimated at
9,843,000 in 1954 is expected to
increase

destined

nrj| too mjuiy yeajs jtway,, w
gain
sfevetf
adcuilohal seats.

land

said

perhaps it was not realized gen¬

California,

the

|row ^om 5,762,-

41%

stands

now

apparently

expected to vary in growth
during the same period from
12% for the East South Central
to

Tomorrow—Wesley C.
Syracuse
University*
Syracuse 10, N. Y.—$4.

Making of Higher Executives: The

plant.

and may or may not coincide with
the "Chronicle's" own views.]

timore

are

region

Benson

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital

Chicago, Detroit, Houston, Bal¬

435.

increase.

Atlantic States.

Agriculture

gain popu¬

lation and still lose seats,

i/,582,000 by 1975,
Other regions

\ 66%

the
Economic
Secretary of

freedom

other

Census Bureau in

lose seats.

in¬

Rocky Mountain

Detroit,

American

census

jection of population growth a
few months ago said that nine
states
apparently
will
get
a
larger representation of House

nation

is expected to

Club

buys

the

Customers

Speaking

000 tractors, cars and trucks on

results.
The

there

oil business?

Congress to be elected in 1962.
In some states the legislatures
will

that

census

nearly 5,000,000 farmers.

Farmers

Results1

1790.

the

cen¬

of ^population and housing
will start in the Spring of that
sus

whs

Clark

cialized

vance

sus

halted,
needs

for

Economist,
$10.00.

Perhaps the drift toward so¬
agriculture has been
but
the
farmer
still

pretty good running box score
they produce. For instance, the
Department knows now in ad¬

The kickoff for the 1960

Oriental

Journalism

Press,
of the work of farmers and what

Full text of Commercial and Financial Chronicle : October 23, 1958, Vol. 188, No. 5788, Section 1

FRASER