Full text of Commercial and Financial Chronicle : October 29, 1959, Vol. 190, No. 5894

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The COMMERCIAL and FINANCIAL
U

MICHIGAN

OCT 3 0 1959
BUSINESS

ESTABLISHED

ADMINISTRATION

LIBRARY.

1S39

Reg. U. S. Pat. Office

Volume

190

Number 5894

New York 7, N. Y.,

Thursday, October 29, 1959

Price

Cents

Copy

Editorial:
in

order

"build

better,public understanding" of
influencing economic growth, inflation and re¬

factors

By Antliouy GauLis,* Investment Counselor

lated matters, the so-called Nixon
Committee has issued
another

truths.

general
It

exposition
to

seems

elementary economic
larg^y a reiteration of

"lines" which the Administration
hhs been
using for a
while past—the need for

good

Treasury surpluses in
good times and the advisability, not to
say the necessity,
of
removing the coupon rate limitation on long-term
Treasury obligations. The Committee and the Adminis¬
tration are, of
course, on strong ground in
steps of this sort. Both are essential to

demanding

good manage¬
reminders
of them are
likely to make a real impression upon public
thought, we hail that repetition though it come often

ment of

Prominent

investment

rate

rise;

and

eliminate,

case

open,

*•'

On the basis of my own
studies, we now appear

to be either past

■

conclusion

;by

very

If every-

spring of
times

1937

were

not

the

good

different

major cyclical

support this
points of view.

are:

(5) Our position in one
"Time" cycles which I first

buy stocks for either

long-term investment, the Stock Exchange
would

five

I shall try to

Reserve rediscount rates and
cyclical peaks in the
stock market; and
„
' ~
'

example,
or

from

close to

(1)
The evidence that stocks are selling at a
premium for popularity, as judged by price-earn¬
ings relationships over the past-forty years;
(2) The relationship of stock to bond yields;
(3) Our stage in the business cycle;
(4) The correlation between changes in Federal

decision to buy and,

short-term
:

These

are
always two
This will inevi¬
the Stock Exchange is

that the summer of 1929

;

of the three
10-year
developed in 1930.

have

had

'■

be¬

Price-Earnings Relationships

of a complete absence of
buyers. Conversely, at the sub¬
sequent lows, when the vast
majority of "stocks
had
declined by 50% to 75% or more
cause

-i
•

Anthony

stocks

The level of stock
prices to earnings—and par¬
ticularly to income during periods when business

were

have

very

been

few

■

one

of the best clues

selling at

premium for

discount for

unpopularity. The
it has always been

growing
stock

chorus^ of; optimism which develops

prices advance, once the type of stocks which
make up the Dow-Jones Industrial
Average reach
the equivalent of between 16 and 18 times
a pros¬

Stock Prices and Values

perity level of earnings.

At this

point, I might mention that I

In 1929, the Dow-Jones
high equal to 19.1 times the
earnings which were to be reported for that year
but, of course, the anticipated level of earnings at
the time the highs were recorded was somewhat

in agree¬

Industrials touched

with the

ment

are

since 1920 shows that
wise to start to go contrary to the almost
inevitable

the^olferings
,.

probably

record

trades

the whether stocks

popularity

cheap in relation to

basic; .value,g that virtually all ^of
would have been withdrawn. _.'

quite active—is

from their previgus peaks, there

c.nbi.

would
because

efforts to prevent

growth depends in
large measure upon better public understanding of the
problems involved. That is prob- (Continued on page 26)

they are basi¬
cally very high, and to be willing to dispose of their
holdings following substantial declines.

stocks

common

concept of the stock market cycle
being merely wide fluctuations in stock prices,

with swings in popularity to above and below
slowly moving values. After an extended advance,

above those

actually wit-

(Continued

on page

26)

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
securities are afforded a complete picture of issues now
registered with the SEC and

IL S
:

potential undertakings in

Government,

our

"Securities in Registration" Section starting

on page

32.

State, Municipal

Publie .Housing,::

State

and

ap4 Munici pal

..2Secii r

-1

STATE

«KD

MUNICIPAL

Lester, Ryons
So.

}

CHEMICAL BANK

TRUST

BROKERS

COMPANY

BOND D1 PAKTMKNT

THE FIRST NATIONAL CITY BANK

Burnham

30 Broad Street

and

Company

MCMtCKS NEW YOKK ANO AMERICAN STOCK

New York 15

IS ftROAD STREET, NEW YORK 5, N. Y.

OF NEW YORK

•

014-1400

Bond

Distributor

•

Dealer

"•

•

T.L. Watson &Co.
ESTABLISHED

Dept.

Teletype: NY 1-708

Active Markets

To Dealers,

canadian

Stock

Bloch

-■ w

? ?i ¥% %

BROAD

Exchange

Inquiries Invited

CANADIAN

DIRECT

DEPARTMENT

PALLAS

•

BRIDGEPORT

PERTH AMBOY

l
'
•

■

BROADWAY

NORTH

MunicipalBonds

♦

CALIFORNIA'S
CIVIC

IMPROVEMENT

(

PbMimox Securities
<orporati071

Co.

MEMBERS NEW YORK STOCK EXCHANGE
NEW YORK

BANK

Co.

MONTREAL AND TORONTO

Goodbody

NEW YORK 4, N. Y.

COMPANY

WIRES TO

Correspondent—Pershing

FOR

Commission Orders Executed On All

Exchange

STREET

the

bonds & stocks

Teletype NY 1-2270
$ <'• •• M ■

DEPARTMENT

Chase Manhattan

Southern

CANADIAN

Canadian Exchanges '

American

BOND

New York Stock

Maintained

Banks and Brokers

securities
Members

TIRST

York

New

1832

„

Bonds and Notes

Exchange

California Securities

Net

Underwriter

Inquiries Invited

EXCHANOES

TECKTYr* NV 1-MK

CABLE: CO BURNHAM

<■

Offices in Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa Monica

DEALERS

•

PubUc Housing Agency

Associate Member American Stock Exchange
Members Pacific Coast Exchange

UNDERWRITERS

NEW YORK

California

Members New York Stock

BONDS

Co.

Hope Street, Los Angeles 17,

■

I lAiiovcr 2-3700

telephone:

623

LA SALLE ST.

CHICAGO

;

However, it is probably an *
essential part of the process of
getting large num¬
bers of people to
buy stocks when

important cyclical

of course, vice versa.
one
had agreed, for

growth. In other words full support of the basic philos¬
ophy of the full employment act is evident in all that

The Committee says success in its
inflation and to promote economic

courage the confusion.

past

as every
trade depends
decision to sell being off-

set

economic

long-term governments are now
brought forward and strongly advocated for the express
reason that
they handicap the Government seriously in
its efforts to prevent inflation and to
promote economic
growth.
/

cycle, and to be

fact, the proposals for
removing the limit on

40-60% level.

long

•

duty of the Federal Govern¬
at,the very least greatly to mini¬

the Committee has had to
say. In
better fiscal
management and for
the coupon rate on

widespread and, particularly, that
manipulators do not hesitate to en¬

market

our

must keep in mind is that there
sides to the stock market
picture.

long-term

It is unfortunate that this
confusion between prices
and values is so

important things which investors

support of the doctrine that

promoting

near

peak in the stock market.
One of the most

mize the force of the so-called business
the leading force "in

"leg" of

readjustment. Advises portfolio holdings of

it is somehow the bounden
ment to

Average to 430-450

range, as first downward

questions that would give cause for great
rejoicing.
first place, implicit in all of the
Committee's
or

market

historical "Time Cycles." Based
precedents, predicts decline in Dow-Jones

the

is full faith

maintains

(5)

tably be the

utterances

people tend to forget that the value of a business
is based on long-term earning
power and dividend
prospects, and not on earnings for any single year.

City

major cyclical peak. Cites (1) stocks'
"popularity-premium"
on basis of
40-year record; (2) stock-bond yield ratio; (3)
current stage in the business
cycle; (4) recent rediscount

But the Committee neither in this last
outgiving nor
any of the others has revealed the sort of
insight into

these

adviser

national financial affairs. If
repeated

and late.

New York

■■■

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

MUNICIPAL BOND

Bank

DEPARTMENT

America

N.T. A S. A.
San Francisco

Los Angeles

The Commercial and Financial Chronicle

(1786)

Dealers only

For Banks. Brokers,

If it's Over-the-Counter

•

The Security I Like Best...
in the investment and advisory

Traders Say

•

Western

Lines

Air

"The Security
Like Best."

Niw York Hanseatic

ment.

tithe
stock

1920

Member

New York 5

120 Broadway,

Teletype NY 1-40

WOrth 4-2300
•

PHILADELPHIA

CHICAGO

•

BOSTON

SAN FRANCISCO

this

Wires to Principal Cities

Private

$20

around

Members
N.

Security

Grimm

Record Earnings: Indeed at

Bids

Odd Lots

(Active and Inactive Issues)
40

Exchange Place, New York 5
3-7630

WHitehall

Phone:

Teletype No. NY 1-2762

pand

value

soundest

approach

worthy

recognizing

information

and

about

Each

services.

issue

the

also

carries

investment
for in¬

$2.50 for current

vesting by Ira Cobieigh. Send
issue or $15 for

penetrating

economic background

3 months.

Pub¬

$50 a year.

lished twice a month.

INVESTMENT ASSHHATFS
Hillsdale, N. J.

P. 0. Box 14

convertible

are

$18.83.

quoted at

These
a

stock

into

currently

are

fat premium of $180

bid.

trust¬

smaller

promising,

companies not encountered in most

•comment

capital

investing., for

authoritative

contains

gains.

which

early In Its life is the

company

ex¬

bit further due to continu¬

ing conversions of a small $2 mil¬
lion
issue
of
4y4% debentures,

SMALLER COMPANIES
PROFIT SITUATIONS believes that

and this total will

now

For the first half of

1959, profit
share. A busy

jumped to $1.87 a
month in July added 50 cents more
to this figure, and a booming Au¬
gust chalked up an additional 73
cents.
Hence, net for the initial
8 months of 1959 leaped to a rec¬
ord $3.10, with all but 6 cents of
this

total

representing actual
erating profit. (The 6 cents

op¬
was

derived from sale of property.)

somewhat difficult.

For

the first

months

of 1958, only 10 cents
"earned," and profit for the
entire year came to $1.51. How-

was
•

•

all

eveh

WANT INFORMATION ABOUT

planes at

Canada,

offices

our

throughout

firm has

first-hand

familiarity with the entire
Canadian securities market.
handle transactions
dian securities,
corporate

and

all

Cana¬

including stocks,

and municipal bonds,

commodities,

and

was

glad

supply

about specific

The
shut

to early June)

rapid

income

reason

down

will

information

issues of interest

the

was

Dozens

vacation

are

air

ugly, brown chemical
to prevent damage

ing tape to
a

big job

was

lot of mask¬

remove.

round

was

decade.

the

United

States, travelers
air-minded, because

avidly

are

distances

between

cities

are

ally much greater than they

usu¬

are

you.

Call

write:

Has

Jet

Entered

Air Lines

Age:

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

tMnk

ern's

"labor"

that

most

with the Lockheed "Electra" prop-

difficulties

rea¬

are

thing of the past, and that much

circumstance

solicitation of

offer

the carriers

allow

return

./<

JAPANESE

STOCKS
•

For

Lines

seems

S.v

write

Yamaichi

Securities Company
of New

York, Inc.

Affiliate

Yamaichi Securities Co., Ltd,

Tokyo, Japan

certain that Western's
management will continue to do
an
excellent job in the jet age.
Air

information

Fu¬

their investment.

Western

current

Cull

adequate

'.I

•

It appears

Brokers

Investment

<£

111 Broadway,

Bankers

N. Y. 6 COrtlandt 7-5680

"going
places" along with the
mushrooming population and in¬

defatigable

West.

the

energy

company's dividend, which
has totaled 80 cents in cash plus
4%
in
stock each year for the
past 4 years, was raised early this
week. A quarterly of 25 cents was
declared vs.- 20 cents previously.
Because of the higher cash payout,
discontinuance
of the
foregoing
stock dividend is being considered.
The

EARN

Los

Return

W: suggest Class "A" stock
of aggressive

small-loan

chain.

paid since

1942.
per

Dividends

Currently about $6,00

share.

Members: Phila.-Balto. Stock Exchange
Boston & Pitts. Slock- Exchanges

Angeles, Calif.

(Associates)

Exchange

Members Pacific Coast

Annual

V2%

ALBERT J. CAPLAN & CO

Harbison & Henderson

which would fit in with the line's

1516 LOCUST ST., PHILA. 2, PA.

ordinary de¬
velopment of
fine pharma¬
ceutical prod¬

relatively short, and medium-haul
pattern. President Drinkwater has
emphasized this point in aptly

stating that "We would not need
United

States

for

exciting

taken

and

already. But
any
acquisition of "pure jets"
would likely entail additional fi¬
nancing
arrangements. * Western
operates 33 piston-engine craft,
care

keeking

New

Routes:

from

Los

Angeles

Arthur

San

Francisco-Oakland to Hawaii, and
from
California down to Texas.

Hanisch, and
you
have a
E.

Mangum

supreme

Western

and

headed

by President

Kenneth

has applied to the C.A.B. to serve
certain ambitious new routes, such

aggres-

manage¬

ment

in^uding 27 DC-6B's and 6 Convairs.

sive

new

Opportunities Unlimited
IN JAPAN
Write

for

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

facility

plant

Financing of the 9 Electras has
been

Add

ucts.

trip

Lake Tahoe."

across

Nomura Securities Co., Ltd.
61 Broadway, New York 6, N.
Telephone:
This is not
>rders

BOwIing
offer

for

any

Green

9-0187

solicitation

for

particular securities

com¬

bination

"Mortar & Pestle" that represents

<o*>R

The

Stuart
Company,
leading
pharmaceutical corporation on the
West Coast.

However,

the competition

among

various airlines for schedules such
these

and the

extraordinarily

keen

outcome is highly unpre¬

dictable.
course

sition

Any flight to Hawaii, of
require the acqui¬
of "giant" jets.
would

America's Pioneer Airline:
Western Air, now 33^ years old,
claims to be America's oldest com¬
mercial

airline

from

the

stand¬

subsidy-free since 1951.

Earnings

results have been in the profit col¬
umn each year since 1949. Western
was

one

the

first

airlines

Starting simply
uct firm in

be construed

buy,

any

offer to sell,

security referred

herein.)

one

prod¬

1941, The Stuart Com¬
developed
a
line
of

pany
has
items
ranked .'high
na¬
tionally in the medical and phar¬
maceutical - professions.
Signif¬

ethical

icantly, obsolescence,
detriment

sidered

one

SAVING^

notorious
the pharmaceutical
a

industry, presents no problems at
Stuart.
The
original
product
"Stuart Formula," a multi-vita¬
min and mineral dietary supple¬
ment,
still represents
a
large
portion of annual sales. It is con¬
the

most

widely

used products of its kind.
In 1958. a $3 million plant

Over-the-Counter

Quotation Services
for 46 Years

lo¬

cated in Pasadena,

completed

and

from within.
sents

California, was
financed entirely

The building repre¬

National Quotation Bureau

unusually functional fa¬
recognized as one of the

cility
five

(This is under

branch offices

our

BOSTON 10
as

NY 1-1557

Mobile, Ala.
Direct wires to

all know, the

jet, So far, 9 Electras have been" Stuart Company
ordered, 5 for delivery this year, •.
e
i
Formula for Success"
and 4 more in early I960; Western
has seemingly been conquered by
is also expected to consider pur¬
sure-fire ingredients conjured up
chase of a fleet of intermediatethrough 18 consecutive years of
range "pure jets." Of course, such
sales increases
jet aircraft must be of a type
and an extra¬

even

West¬

About the

airline
business enjoys
an
unusually
strong growth trend. At the same
time, it is fiercely competitive.
The
Government
agency
which
regulates airline fares must strive

Western

born in 1941. Operations have been

Fortunately, there is good

HAnover 2-0700

New Orleans, La.- Birmingham, Ala

boasts about 2,600

Thoughts

Some
ture: As

jet age for
Aug. 1 this year

point of continuous operation. It
stewardesses, one of started
flying mail and passengers
whom reported in with a picture
in 1926.
In 1928 it adopted the
postcard showing her seated on a
legendary title of "Western Air
camel in a remote part of the
Express." The present name was

son

The company

entered the

the first time

American Stock Exchange

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

KENNETH E. MANGUM

scattered

world.

Members New York Stock Exchange

Members

Western

Steiner, Rouse & Co.

the East.

preservatives

the

western

June of last year, after this 108day "holiday" presented a host of
problems.
Each plane had been
coated with

California, which
populous state in the nation

the

famous

"empire"
will be tne

within

strike which Western experienced

into

covered. Right

most

two years earlier.

back

spots

in the heart of Western's

suspension of service by any
carrier in airline
industry history,
far exceeding the
73-day pilots'

Getting

benefits from

installations.

for

by a pilots'
longest full-

served

industrialization, including
major missile and atomic

some

scale

to metal. There

year's

profit.

108 days last year (from late Feb¬

strike.
17

Western

ruary

With

last

\jorjginated from sale of used air¬
that

CANADIAN SECURITIES?

From

and—on to the twin cities of

Territory

parison with last year's results is

Institutional Investors.

served.

are

and

Minneapolis and St. Paul. Other
routes go northward to Calgary
and Edmonton in Alberta, Canada.
A relatively new flight runs from
Los Angeles down to Mexico City.

the

Steep Recovery From 1958: Com¬

Francisco

as Salt Lake, Den¬
Phoenix, Las Vegas and Chey¬

enne

this

moment, it looks as though net
profit for 1959 will score a new
all-time high by a wide margin.
As a rough estimate, the writer
can see 1959 net soaring to around
$4.25 or $4.40 a share, even allow¬
ing for some increase in the num¬
ber of shares outstanding.;
There
are
1,025,000
common

BONDS

Angeles

ver,

scoring a dramatic upturn in earn¬
ings and traffic.

Dealers Ass'n

San

tain cities such
Eldon

the pres¬

quotation
is approximately $34.
Today we
shall take another optimistic look
at Western Air and its pretty stew¬
ardesses.
This
highly - efficient,
medium-sized regional carrier is

ft CO. INC.

such

California, flight paths fan out to
various inland and Rocky Moun¬

ent

S. WEINBERG,
GROSSMAN

A new policy Of releasing earn¬
ings statements on a monthly basis
has been inaugurated.

Los

the

rose

Bought—Sold—Quoted

employees and 7,500 shareholders.

cities

to a
peak of $38,
and

There

areas.

thick network of north-south
routes all the way up and down
the Pacific Coast. All of the major

Earlier

year,

price

ure

availability

9,000 miles in the system, includ¬

Exchanges
share.

seat

many as 60,000 flight segments
to 6 months in advance.

are over

ing

Stock

Coast

market

new

Pacific

and

Exchange

Stock

Mangum, Harbison & Hender¬
Los Angeles, Calif. (Page 2)

son,

determine

Western's route
has
been
greatly
by extensions into

strengthened

the New York
Associate

American

sfru

quoted on

was

Louisiana Securities

Eldon

—

currently

In recent years,

that

"WSX"

Corporation

revenues are

Lines

running at an annual rate of about
$55 million, by far the highest introduce economical "coach class"
level in history.
That's a whop¬ flights. It has been a pioneer in.
ping 4U times the figure of only honoring various credit cards.
A
20
years
ago,
and 5 times the revolutionary electronics reserva^
amount
of
10 years ago.
Some tions system, designed and built by
years from now, traffic will prob¬
Teleregister Corp., enables ticket
ably run double today's achieve¬ agents at some 96 locations to;

Established

in The

May 5, 1955, I had the
pleasure to write a lengthy article

executions.

seem.

tory: Gross

icle

•

Fast, dependable

ago,

years

Alabama &

Grimm, Vice-President, Walston
&
Co., Inc., New York City.
(Page 2)
Stuart
Company — Kenneth
E.

Operates in Top Growth Terri¬

exchanges

Commercial and Financial Chron¬

Coverage.

•

■;

Just about 4%

achieve
results,

can now

substantial earnings

it would

Western Air Lines

private wire system.

3. Nationwide
4. Broader

and other leading

0-T-C experience.

2. 39 years

Hence, the airline
some

of New York Stock Exchange

Members

Participants and

Air

Western

calmer skies lie ahead in this field.

GRIMM

Vice-President, Walston & Co., Inc.

securities.

400 unlisted

Thursday, October 29, 1950

field from all sections of the country

New York City

markets in more tkan

1. Primary

ELDON A,

of:

For the combined advantages

Their Selections

participate and give their reasons for favoring a particular security.

Call "HANSEAT1C"

This Week's
Forum

A continuous forum in which, each week, a different group of experts

finest

ments

architectural

19co

achieve¬

combination of

Incorporated

46 Front Street
CHICAGO

Continued

page

Established 1913

NewYork4,N.Y.
SAN

FRANCISCO

Volume

190

Number 5394

The Commercial and

Financial Chronicle

(1787)

•

tlCHTfnSTEl

B. S*

■For Advance
By

Julian

Baird,*Under

CONTENTS

Refunding

Secretary

for

Monetary

Articles and News

Affairs,

Stock

Market

Danger

Signals—Anthony Gaubis.

spokesman

advance

announces

refunding

involving

plan

Present Imperative Need for Advance
Refunding

about $20 billion depends upon being freed from the present lockedin

one-to-five-year bracket. Mr; Baird

gressional action to

You'll pick

^decline in interest rates

occur.

ing the growing public's

inveighs against

easy money

ceiling—assuming

prudent

debt

structure

defends the

need

rate for

new

financial

practices;

extensive

5
5

Canada's.

—Raymond Rodgers

ment of

people of this country today. They
are
not the only, problems con¬
fronting us as a nation, but I
would submit \V

many .?

ways,v,

they ;

others

continue
in

the

confidence

values

our

P-

;\x'....
15

' ;

CHEMICALS

Great Responsibility

SEC and Administrative Law—Hon. William P.
Rogers

SPEEDRY

HERMES

Sound and Unsound American Money Systems
■

—Frederick G.Shull———

—:

DIXON CHEMICAL
Let

de-\

tional

pends

our

then

the

Whether

answers.,

these

major

two

Julian B. Baird

is, of

our

course,

na¬

security.

period

tension.

We are living in
great international

of
We

situation

expect that

can

have

since World

War

known

will

the
it

in
intensity. But I believe we must
recognize that the cold war, in one
form or another, may be with us
for a long time.
Adequate

period

defense

such

fronts

ent

called

for

world

American

Association of America to Convene

WESTERN GOLD

Nov. 29

eco¬

—

militarily.

dollar has

become

Regular Features
As We

See

(Editorial)-

Bank and Insurance

short,

have

become

Business Man's

world banker, performing the es¬
sential function

'•

of the banker by

—

Bookshelf.-

;

J.F.Reilly&Co.,Inc.

Cover

Stocks

•

16
'

Coming Events in the Investment Field

Century Chemical""

First Lumber

borrowing short and lending long.
Our long-term claims arise out of
our

loans

throughout the world.
claims

term

investments

this

•

Recommendations

■

-8

A' •
'
• •
••
s
»•''
Einzig: "Spectacular Expansion of Dollar Deposits in London"

From

Washington Ahead of the News—Carlisle Bargeron
'

short-term

market

Associates*

•

extent

Certified Industries*

~J~
' ,-v
Indications of Current Business Activity.-

Mutual

arise

Corp/:

Electronic Research

The shortthe form

balances-and

dollar

investments

and

•'

■

Dealer-Broker Investment

extensive private and govern¬

ment

•

unprecedented in our in considerable part out of our
peace-time history.
adverse
balance of payments in
This, then, is our first major recent
years. ..These
short-term
task—national security. The sec¬ claims against us tend to be con¬
ond is so closely linked with it centrated in the industrial nations
that I have some hesitation in of Western Europe, nations that;'
speaking of the two as separable with the initial help of the Mar¬
issues. But, for emphasis, it may
shall
Plan, have r now, by their
an

currencies of the free world.

one.

are tall

free

financially,

Forty-Eighth Annual Convention of the Investment Bankers

widely used currency in
settling
international
payments,
and
dollar
reserves
supplement
gold in support of most of the

vary

a
Military power,
economic ~ strength,
and
world
leadership on a number of differ¬

side.

itself

;

"Fanny Mae" to Exchange Mortgages for Government Bonds 17

the most

^massive job and

many-sided

the

nomically,
The

The first
tional

domestic

happen to like it

nation finds

leader

lems.

this

the

& RESEARCH

the interna¬
briefly and

aspect
turn

not,

prob¬

take

nificance

right

;

ELECTRONICS

Maintaining Dollar-Confidence

questions of
sig-

national

finding

4-6551

TRANSISTOR

—Roger W. Babson

is
to

both
"

G. sHeisler— ii

mostother

INDUSTRIAL

___w—13

American Labor Leaders Ilave

confidence <
money

abroad?

and

Dept. j

STREET, NEW YORK

Industry That lias -Found Itself

•*

is:,

Sixties?'—Henry C. Alexander...

—Kenneth

•

money,

must

maintain

home

value

What

WALL

Savings and Loan Business and PendiiigiLegislation

ingredient in financial V
and that is particularly
the

Obsolete Securities
99

that;;: Overloading the Donkey—Emerson P. Schmidt——

told

not

element

of '

'•

need

where

your

Wall!

Telephone: WHitehall

1—_

;

—Charles M. White

twhich',,underpin

currency.

Bankers

The;

solution

forces

concerned.

present

time.

essential

the

fears

matters,

dimension

affairs,-we need have
to the strength of the

our

economic

the

overshadow
all

ProspectsHer
A

Two major problems are facing the

that, in

cash for

Baird

Mr.

"What Kind

our

—_

Cobleigh

savings bonds, and avers*the solutions to

problems are not beyond our reach.

our

•

No-Economic 'Justification for Attacking Savings'Banks

advocates who would lessen Fed's inde¬

Some Current Issues in Savings Banking—G. Russell Clark--

pendence and fix interest rates by fiat; and denies reconstruction of
'our

—_

LPG: Before, Via, and Beyond the Pipelines—Ira U.

The Under Secretary finds encourag¬

support

--Hon. Julian B. Baird

obsoletes

-•

this depends upon Con¬

says

the interest-rate

remove

AT THE DROP OF A HAT

Cover
,

Treasury
;

AMD OOMFAHY

•

Page

Treasury Department, Washington, D. C.

Funds—,.—

Prospectus

request

well

so.

This

—

is the maintenance of fi¬

.7.

buttresses

power

powerful

long-term growth and without
for government inter¬
vention
on
any
massive scale.
Prior to the steel strike, recovery

proceeding for
new

other

the

that

—

Direct Wires to

Chicago

Securities

Railroad

his

notable

Annual Meeting of the In¬

Monetary

Fund

San Francisco

must conduct

fiWncial

The Market

Security

The

affairs in

our

———

Salesman's Corner—....—

Securities

and You—By

For the

MUNICIPAL BONDS

Wallace Streete

LLike Best._i_-_.______

—...

WEST VIRGINIA
VIRGINIA-

SOUTH

that

manage¬

Continued

Tax-Exempt Bond Markct-ADonald D. Mackey—6

Washington and You..

call

i——

F.W.I

^Column

not

page

RICHMOND, VIRGINIA

24
Published

V) n T P T Q Q T H

have

lIlLrLIlllLU

QTflPlfC
0 I UOIYU

Reg. U.

REctor

Founded

BROAD

York

1868

Stock

Boston

Albany
Nashville

Newark

DANA

TELETYPE NY
Chicago

Schenectady

Glens Falls
Worcester

second-class

Bassett Furniture Industries

Subscriptions

SEIBERT, President

Vice-President

Dominion
Other

Canada,

Countries,

Other

Thursday (general news and ad¬
issue) and every Monday (com¬
statistical issue —market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Every

Chicago

111.

135

South

(Telephone

Salic

United

States,

Territories
and
Pan-American Union, $05.00

Bank

$45.00

and
per

St.,

STate 2-06131.

Note—On

$72.00

Members

per

$68.00
per

year,

per

year.

Record

(Foreign

—

Monthly,

Postage

foreign
must

made

rate

Commonwealth Natural Gas

STRADER and COMPANY, Inc.

extra).

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

the

Life Insurance Co. of Va.

year.

Publications

Quotation

year.

plete

Office:

Febru-

American Furniture

Possessions,

Editor

vertising

Other

matter

Subscription Rates

9576

Thursday, October 29, 1959

1-5

as.

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

New York 7, N. Y.

CLAUDE D. SEIBERT,

Exchange

ST., NEW YORK 4. N. Y.

TELEPHONE HAnover 24300

WILLIAM

Reentered
ary

COMPANY, Publishers

2-9570 to

Trading Interest In

Company

Patent Office

GEORGE J. MOKRISSEY,

by William B. Dana

1959

and

CHRONICLE

DANA

Park Place,

Weekly

Twice

FINANCIAL

•WILLIAM B.

Spencer Trask & Co*

4C«I

available thisAveek.

The COMMERCIAL

For many years ice

CAROLINA

;

)

CAROLINA^m*

nation's

manner

NORTH

Industry

The State of Trade and

point I would make is this:

economic

New

St. Louis

Offerings

Members

Cleveland
Dallas
* Philadelphia

Los Angeles

Security

Prospective

address

prudent

specialized in

Teletype NY 1-1825 &, 1-4844

—

inc.

40 Exchange Place, N.

•

——

Securities

MACKIE,

HA 2-9000

wilTTfelp maintain confidence; not
only of our own citizens but of the

measures

With

foreign

that, while our position is one of
great basic strength, it is apparent

all-time records

Securities Now in Registration.—

The

reached in industrial pro¬
duction, employment, incomes, re¬
tail sales, construction, and vari¬
ous

our

active

Washington.

were

activity.

Singer, Bean

■

ternational

the ' need

been

—

•

16
25

May—

Report

Reporter's

Public Utility

these

Anderson

had

create

nation, we have to face up
problems in our balance
of payments position.
I shall not
enlarge on that statement as this
subject was covered by Secretary
to

support for a strong currency. We
have recently weathered a reces¬
sion without serious interruption

months and

does

trade.

and thus contribute
growth.
The basic health of the Ameri¬
provides

Our

——

How¬

competition for

currency

economy

world.

free

the other side of the coin is '

that

to sustainable economic

can

the

...

Our Reporter on Governments

ever,

debt
will

larly, fiscal, monetary, and
!management
policies, that
our

Wilfred

second

nancial policies, or, more particu¬

^preserve the purchasing

......

Observations—A.

own
efforts, rapidly regained a
•problem—and the one with which position of economic and financial
I am mainly
concerned at this strength. This we welcome, as it

time

Notes

NSTA

News About Banks and Bankers

LYNCHBURG, VA.

account

Now

York

funds.

LD 39
Private

—5-2527—

Wire

New

TWX LY 77
York City

(1788)

The Commercial and Financial ChronxcU

eral

BY A. WILFRED MAY

overhauling of

tions;

perhaps

Thursday, October 29, 1959

.Electric ■Output

The State of

Retail Trade

Aid opera¬
wiping the

ing interests. Meanwhile,

Food Price index

TRADE and INDUSTRY

Auto Production
Business Failures

our pro¬

Commodity Price Index

partial,
to the
disastrous effects of the multiple
expansion of our aid.
but

INVENTORY-ING OUR AID

Past, Present, and Future

"tying"

indispensable,

Carloadings

our

even

slate clean of vested and conflict¬

spective

Steel Production

D.L.F. (as has long been the rule
by the Export-Import,Bank).
Ideally we should have a gen¬

OBSERVATIONS...

offset

United States Circuit Court, in a two to one decision on
Tuesday, Oct. 27, upheld the Taft-Hartley injunction ordering the
500,000 steel workers back to work in the mills for 80 days.
The
three judges of the Third Circuit Court of Appeals sitting in
Philadelphia added a provision permitting the strike to continue

The

public's growing interest in pluses, and our increased invest¬
gold
outflow, export
surpluses, ments abroad, is creating our bal¬

CELEBRATING A

The

payments
items, perhaps should not be too
surprising. But quite remarkable
and

balance

even

the

current-

spilling - over
of lay discus¬
sion

fSSSlF

ing"

for-

our

The

"The present
week has
wit¬
foreigners'
short-term dollar claims against nessed the greatest stock market
us.
Perhaps our long-time status catastrophe of all ages, and it has
of creditor-nation is even being left behind a trail of sorrow, mis¬
ery

ket

Headquarters

and distress.

participants in the stock
craze

The bulk of

...

which has

six more days, giving the steel workers u'*uon an interim
opportunity to appeal its case to the U. S. Supreme Coiirt where'
the constitutionality of the injunction and other legal questions
'Will be settled.
In writing his dissenting opinion Judge Hastie
(took exception to the argument that the health and safety of the
country demanded the injunction which was invoked by President
Eisenhower on Oct; 19. The strike started July 15 and has been
in force 107 days up to yesterday, Oct. 28.;- - - -:
?> ;' *
for

mar¬

resulted

now

The Development Loan Fund's so disastrously —-'and That means
all parts of the population, and all
actually disbursed credits amount¬
races and all
nations, to the far¬
ing to some $100 million since its
establishment in 1957, are included thest corners of the earth—have
in the Mutual Security Program been simply left stranded, without

our

Development

category. D.L.F. has received from
the Congress appropriations total¬

Fund

Loan

Sweet Note

1959—

with the building up of

"Soft-Sell"

policy de¬

cision

THIRTIETH ANNIVERSARY

deficiteering,

the

superr^soteric
process of "ty¬

eign aid loans. ,

payments

estimated at $4 billion for

threatened.

that

ance

even

Every effort will be made by the government attorneys to
day

limit

Bank

Foreign

overall

postwar

Aid do date totals approximately

$57 billion in net grants and $12
billion in net credits. Following is
a
breakdown of this $69 billion

total, lumping

grants and

credits comprising each item.

(In billiofis of dollars)
Mutual Security Programs

$48.0
5.9

Supplies

UNRRA

the

World

I.D.A.

Bank.

will

thus

Our Total "Tab"

3.4

Lend Lease

1,0

;

0.9

Agric.

Commodities
Inter-American Programs
Special Country Programs.
Export-Import Bank

3.4

Agric. Trade Dev. & Assoc..
Surplus Properties

0.7

that

exports
our

our

would

extension

both

its subscriptions

at least entitled

prevent the increase in our fi¬
nancing of European and Japanese

0.4

Also to be included in the U. S.

are

0.8

Miscellaneous

agencies
debtors'

to the

result

dollars

without

from

through

curbs

mannerjof their

use.

'.^ank and Fund, of some And since it is intended, partially
owing to various operational dif¬
$4.7 billion.
Currently, our Foreign Aid bill ficulties, to refrain from attach¬
World

is running at an annual'rate of
$4.4 billion, made up of $3.8 bil¬
lion in net grants and $600 million
in credits. This,Together with the
recent declines in

our

export

sur¬

ing

"tie-in"

restrictions

share in I.D.A.'s
eral

our

coming multilat¬

operations, the "tying" must

be done in

our

Treasury's bilateral

S-'f

' *■-

MANAGEMENT

and

Oct.

period of weeks

was

'wmmmmmmmmmmm

most cars, refrigerators, washers

the lag

will be closer to four or five weeks.
'
*•
Already, with most General Motors cars out of production,
have only a token supply of new models.
Other auto¬

But

ment

White,

Weld

A.
Co.;

Suplee,

Co.,

elected

S.
&

counsel.

serve

Drinker
Reath,

was

allowances for industry

than five weeks.

Robert

one

year.

Drinker,

steel

mills

Non-Discriminatory Basis

reopen* leading steelmakers -will

fill

big and little companies emphasize they

won't let the

big customer trample on the rights of the smaller buvers. Case
in point: One small steel firm has turned down a conversion deal
offered bv its largest customer because that would tie up its mill
too long

for other users.

The big
cases

companies

say

they definitely will not serve ^hardship
the degree of

out of line because it is too tough to evaluate

distress.

Smaller steelmakers

say

entry date will be important but it
"We will ship 'first

will not be the controlling factor in all cases.
to customers who need the metal

when

badly and who
needed them," one company says.

were

loyal to us

Steel mills will take about four weeks from the ti™e of

work

resumption to reach 90% of capacity—six weeks to reach that

rate

shioments.

re-elected
~

the

flexible.

Bota

of Newburger &

elected to the Committee

Henry

that, with

backlog orders on a first come, first serve basis, "Steel," the metal*—^My, said. Smaller companies indicate they will be

Daffron, Jr. of Harrison &; Co.

was

sooner

When

Incorpo¬

Winsor, HI,

Yarnall, Biddle & Co. Frank L.

was

cautioned

Steel Orders to Be Filled on

and

Cornelius

are

Co., Inc.

Chairman

Suplee

users

optimism and time required to recover from extensive openhearth
and blast furnace damage, consumers can't hope for balanced ship¬

Geo. W. Elkins, Jr.

James

and

magazine states that mills have set up ambitious recovery
Some indicate they hope to make normal shipments of

products by the third week after the strike.

most

years:

But they

shape.

channeled to steel mills that are able to get their rolling mills
The

following were elected to

better

schedules.

Vice

elected

are

working, but do not have the semi-finished steel in pipelines.

Mosley

wmmm. m mmm m mmmm. m m mm m

choice

ing plant. The plant shut down in mid-October; Even with its
favored position with the steel mills, it hopes to be back -in pro¬
duction at best three weeks after the strike ends.
Realistically,

YeatMosley

three

Co.

BS-902

'
;
to production
who are now without steel will have
wait weeks before they can get their own production lines going.
The magazine cites as an example a major automotive stainp-

Suplee of

Biddle

—

shows that major steel users
to

to serve for two years and

Teletype

inevitable, the national metalworking weekly

and dryers will be limited, the magazine says.
r
The most optimistic timetable for returning

suc¬

Newburger, Jr.

6-2610

in sight This fall

These shortages are not likely to reach the critical stage. 'But

William

ceeds

CAnal

are

the consumer's range of

Mr.

22.

Elkins

Inquiries invited

are

are still likely to suffer
supply.
'
Many appliance dealers are out of 1959 models, and 1960's
are slow coming in.
This situation will grow progressively worse
until new supplies of steel are coming in from the mills.
To get back into production, major steel consumers are making
elaborate conversion deals to line up ingot and slabs. These'will

rated

NEW YORK

durables

winter, "The Iron Age" predicts. - J of the prolonged steel strike, many manufacturers of

states.

Yeatman,

HUbbard 2-8360

Consumer Durables

Because

meeting of the
Group h e1d
on
Thursday,

William

consumer

these products have already had to cut back:' or shut down. Regard¬
less of the actual date of the strike's end, further cutbacks for a

annual

the

Dorsey

Telephones-—BOSTON

Curb

banking centers, refer

before steel moves again in balanced

for

Street, Boston 10, Mass.

Strike

Steel

Shortages of some

makers

'Waddell & Reed, Inc. Class A

140 Federal

the leading
issue.

for

summary

Bankers

The

GANNON, INC.

Association

"Prospectus upon request

MAY &

7.7

2.3
+ 6.8
+

week's

the Executive Committee to serve

Townsend Corporation of America

830,706,717

1,148,000,000

887,408,195

%
+24.1

the

Penington, ColCo., Secretary-Treasurer of
the Group.

Management Corp,

dealers

COMPANY
Television Shares

1958

1,174,000,000

page 45 of the Oct. 26

vet &

National Securities & Research
Corp.

1959

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

Arthur Horton of

Hugh W. Long and Co., Inc. Class B

this

Group

Stanley
A.
Russell, Jr. of Blyth &

.Investors Diversified Services, Inc. Class A

increase compared with

$13,938,775,603 $11,232,066,174
1,293,284,003
1,201,147,696,

1nves tment

*erm expired.

Keystone Custodian Funds, Inc. Class A
Primary Markets

York

For

Co., Incorpo¬
rated,
whose

States for which

Boston

PHILADELPHIA, Pa.—George W.
Elkins,
Jr.
of
Elkins,
Morris,
Stokes & Co., was elected Chair¬
man of the Eastern Pennsylvania
Group of the

"^an,

United

Chicago
Philadelphia

unnecessary

Suplee,

the

Week Ended Oct. 24—

under-consumption."—J.
Rovensky, Vice-Presi¬
dent
of the Bank of America,
be/ore the American Statistical
Association, November 24, 1931.

For Banks, Brokers and Dealers

Clearings 14.5% Above 1958 Week

that for the week ended

cities of

New

Of IBA Elects:

Justified Offset

Surely

3.4

British Loan

and

Eastern Pa.

2.8

Saturday, Oct. 24, clearings for
it is possible To obtain
weekly clearings will be 14.5% above those of the corresponding
week last year.
Our preliminary totals stand at $26,955,669,132
against $23,556,012,061 for the same week in 1958. Our compara¬
tive summary for some of the principal cities is as follows:
all

provide the sorely needed
medium for bringing in other in¬
dustrialized nations, now enjoy¬
ing economic revival, to share the
aid burden with us.
Otherwise,
P.S.
There are now some two
in its soft-lending policies, it will
be substantially duplicating
our million Mutual Fund shareholders,
Treasury's D.L.F. function.
watching the daily box score of
Our
unrestricted
participation their
investment's
fluctuating
in both of these agencies, solo in
D.L.F. in the billions and jointly value.—October, 1959.
in I.D.A. with a staff In the $350
million range, would further ag¬
gravate, unfairly, our pressing
balance of payments problem.

0.2

___

Preliminary figures compiled by the "Chronicle" based
telegraphic advices from the chief cities ofthe country,

indicate

are

clearings this week will show

upon

....

"tab"

'
the

companies which have signed

year ago.

in the
October 29, l959"_—__ 642
columns, and as the subject of lead nothing to their desired national
development).
editorials.
"In the works," additionally, is
Sour Note
Not that the results in public
the International Development As¬
education are altogether satisfac¬
"A major cause of the continu¬
sociation, whose establishment ance of our
tory! For this highly controversial
depression is that the
was finally approved at the recent
question should be evaluated in
security boom with its subsequent
annual meeting of the World Bank.
the large framework of our over¬
price collapse has resulted in an
This
new
agency
will operate extreme and unwarranted
all foreign aid operations—past,
feeling
multilaterally, with the participat¬ of
present, and future — as well as
poverty among our entire popu¬
ing nations the present members lation which has caused
our balance of payments situation.
hoarding

Surplus

the only

Nationwide Bank

page news,

Civilian

are

agreement with the steel union.

■'

grand

Co.

ing

recipients'

Our

Steel

Detroit

ing what they put so boldly at
$1.4 billion in capital funds, stake. To them the future is in¬
has $785 million of undisbursed deed desolate;"—From "The Com¬
use
of their
loans, with $515 million in uncom¬ mercial and Financial Chronicle "
borrowings to
A. Wilfred May
mitted funds, and applications to¬ November 2, 1929.
procurement
taling $1.4 billion. Its lending is P. S.—Dow-Jones Industrial Stock
in the United
Average—
States
with
the
Treasury-State done at low interest rates, without
Department-Fulbright internecine amortization, and repayable in soft
September, 1929___rr 386
currencies (with many of the bor¬
controversy thereover, are being
June, 1932
041
,
rowers
keeping cash reserves
carried by even the* nonfinancial
Anniversary Gift:,
abroad, where they contribute
dailies as front
thus

the

six-

Of the struck steel

remote'chance-of retriev¬

Supreme Court pass on the .whole matter beforeThe
interim expires.
%
;
1
:
;
"
' '
companies, the Kaiser Steel Co; and

have the

Military needs will undoubtedly derail some shioments * that
Continued on page 3

Volume ISO-

Number 5894

The Commercial and Financial Chronicle

(1789)

for

IiPG—Before, Via, and
Beyond the Pipelines

1958.. Suburban

the

sells

common

distributing

Here

again

LPG

companies

bottled gas, as it is known
mpst retail consumers, is made

primarily of

bu¬

tane, or mixtures of these. It

may

•

produced

from

■ *

three

•

oil

comment

shall

for

shortly

manufacturing

chameleoh-

broadening
LPG

Ira

lously returns
to

polyethylene

these
also

efficient

petrochemical

moving
fuel

savings

gaseous .
..
state when pressure is reduced to

and

repair,

eral

cents

atmospheric, and then burns like

ahead

for

tractors,

maintenance

and a saving of sev¬
gallon. Many mar-

lu and domestic distributors

other gas on a kitchen range sell the conversion units that en¬
or heating unit.
able
motor
vehicles
to
switch
West Texas.is the major LPG from gasoline to LPG. Motor fuel
any

natural

and

gasoline producing sales have zoomed from 130 mil¬
region, accounting for about 55% lion gallons in 1950 to an esti¬
production. From mated 900 million galloms this
these Texas fields LPG and its .year.

of United States

natural
gasoline,
ard
transported in truck trailers, rail¬

Other LPG

kindred,

tank

way

tankers,

cars,

pressurized

barges,

and

increas¬

ingly by pipeline (the most eco¬
nomical way). In fact the most

dary

include

uses

of crude

recovery

secon¬

important factors in the extra¬
ordinary
growth in LPG have
been the steady extension of pipe¬

eral

lines, and the development of
underground
storage
facilities.
Rather than build above-ground

let's

the

from

move

at $24 for each
capacity, it has been
more practical to store

steel storage tanks

barrel

found far
salt

formation

cavities,

granite caverns, in the earth at
$3 a barrel. In 1950 there were
no storage facilities; today, capac¬

about

ity

1.6

gallons.

billion

northern marketing areas

this

storage
is vitally important to
assure steady gas supply in winter
when demand is at a

peak.

of LPG are for
domestic and commercial heating
and cooking. These demands ac¬
count for about 46% of total LPG
volume; and are increasing

National

at the

specific.
want

Propane

Greater New

York

and

Long

ness are

retail

Doing

Great Plains with 220,000
in
eight Mid¬

States;

and

Arrow

December.
New

Gas

property grossing $5 mil¬

annually and only

last
m

York.

customers

western

lion

New

and

Arrow

Mexico,

acquired

Arizona

Colorado.

and

Tf+f 3 Vt?^1 a

Pr°parie produces

little
LPG.
It
annually.
buys extensively
Many interesting small busi¬ from Esso and Shell; and from
nesses
have been built up by a few smaller producers in West
local distributors of LPG. These Texas. For the future, it would
enterprises usually start out with be logical for National to acquire
small capital, a truck or two, and extraction plants of its own; and
the company is in line to benefit
a flair for salesmanship. They get
a
their LPG supplies at bulk ter¬ from
proposed LPG pipeline
minals or depots, and deliver the running from West Texas to Min¬
containers or bottles to customers nesota.
National Propane should earn
outside the reach of existing city
natural
(or manufactured)
gas about $1.45 on its common this

rate of over 10%

plants

nine

with

nat-.

continuing interactional strife

intendent

com¬

also

Co.,

Gas

■

.•

lays

specific,

strict

desire

by. the

holding

Joint

mittee

meetings

Legislative Com¬
Depart¬

the Banking
to find some
ground within
t

ment,

and

was

common

the

political uncertainties in some
the

Latin

countries

served,

(Growths has been, splendid and
the first half of 1959 volume
advanced 68%

sold

34%,

over

the

similar

1958. Stock sells at
a

and revenues,

period

and pays

2% dividend in stock. Territory

served

affords exciting

for sales
Here

potentials

expansion.
some interesting

are

com¬

from in LPG,
the
fastest growing
segment of
the
petroleum
business
today.
Volume gained 9.4%
in 1958, a
panies

choose

r*./

observers,

Banking Law ap¬
—
although

our

are

differences

some

this.

•

Disputants

which

house¬

have, or by selling
these items, and a
stove or heater, often on an at¬
tractive, low cost instalment plan.
Distributors
actually operate a
small utility company, without,
however, coming under regulation
holder
the

Will: Grow-Up

h, pro¬

might

tee has been very much aware of
its. responsibilities in* this
area.

be drafted for

The hard work and the time spent

h i

posals

by. Senator Cooke and the other

presentation
to; the

coming
sion

members of this Committee in.the'

forth¬

state

We,

course,

aware

the

attempting to draft
mendations

positions

which

of
Russell

position to

Clark

types

of institutions had

previously

We knew what the funda¬

attitudes

were

these

controversial

subjects,
and
we
there were sharp
opinion. Neverthe¬
less, we had hoped that, in the
spirit of compromise, some for¬
ward
steps might be taken to;
reconcile these divergent vipws.

recognize

While

that

small

some

measure

direction resulted,
express my dis¬
appointment that our expectations
progress in this
must frankly

not fully

this

realized. Whether

because

was

were

the

differences

fundamental prin¬

those

ciple aud therefore unconipromis-

able,

whether it was because
overpowering any

of self-interest

desire
able

and honor¬

compromise, I do not know.

Where

think

process
on

reasonable

for

are

all

from here?

agreed that the

of assuring that the laws
books remain up-

statute

our

and

to-date

their

Alaskan

potential

quimos

and

thus enabled to make
a higher return on invested capi¬
tal.
s

cooking

are

was

reflect

adequately

depressed year. There is a history
a trend pointing to long-term

appreciation in these lively equi¬
ties of companies providing,
in

Total

move

has

there.

the

Es-

portable pipelines for LP
and steadily expanding the

effect,
gas,
use

the Committee

in.

seeking to

rose

this

state.

should

prophesy, however, that
later

the

time

and

inexorable
economic

lead

the people and
institutions of this

wheels

state

only be achieved by entering
fields

service, employing

concepts

and

working

own

cause

rather

than

titor's by any available means, an
economic philosophy
which ap¬

parently does not include within
its

orbit

the

irreparable damage
prestige of the bank¬
ing system of the State of New

done to the

York

the

minds

the

would

back

like, however, to turn
various

around the state.
after

meetings

have

been

added

the

staff

Scott, Bancroft & Co., 235 Mont¬
gomery Street.
,

Join

time, the Committee and I

task.

which

are

intended

objectives.

achieve

tual

In the view of a

savings

banks

Continued

have
on

Minn.—Earle A.

Correspondents™principal cities
throughout the UnitedStates and Canqda

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

Edling-Williams & Associates,
Inc., 614 Grant Street.

at 31. It merits attention as
panies which provide larger capi¬
With Andersen, Randolph
tal resources, improved service, a potential capital gainer of con¬
PORTLAND, Oreg.—Jeremiah P.
more
stabilized retail prices, siderable promise.
Barry, Georgp J.( Gutfleisch and
broader customer credit accom¬
Richard
H.
MacNaughton have
1 o?dlb,irbai1
Gas' *ncorPorated in
modations,
and substantial
op¬ 1948
has
displayed an animate joined
the
staff
of
Andersen,
erating economies resulting from growth pattern. Net per share has Randolph &
Co., Inc., 1026 North¬
greater efficiency and advanta¬ risen from 23c in 1949 to $1.61 east Multnomah.

Dominick

Members New York, American & Toronto Stock Exchanges
14 WALL STREET

NEW YORK

been

page

Edling-Williams

MINNEAPOLIS,

held

Time after time

Calif.—Myron

distributors into substantial com¬

$2 this year. Paying a
dividend Petrolane common

pub¬

lic.

sells

new

better
by
engaging in interfactional strife or
by trying to dgstroy one's compe¬
one's

L. Kern and Maraldine McCubbin

$1.72 for 1958. The figure should
around

the

realization that true progress can

Scott, Bancroft Adds

dustry is the merger and consoli¬
dation of many of these smaller

reality will
the financial

Company.

Berge, Gladys L. Krey and Hugh
F. Morrissy have joined the staff

pronounced trend in the in¬

sooner or

(313IN0HH.0 IVOMVNTJ 3UJ. 01 ICJOOdS)

13% last year; and per share net
increased from $1.47 in 1947 to

rec¬

oncile the widely divergent views
of the various types of institutions

Under our representa¬ heard criticisms leveled against
government, the leg¬ savings banks' mortgage lending
islature
has a
responsibility to polices. Again and again we have
consider ancl act upon proposals heard the statement that the mu¬
ing

these

and markets for same.

SAN FRANCISCO

sourdoughs s t a r t
it will be LPG!
of Petrolane

what will finally
emerge, 1 think we are all well
aware
of
the difficulties facing
say

Walston Adds to Staff
I

gas

revenues

the

am not

tive form of

and

never-end¬

recom¬

some

lot of
romance
as
it will be
quite a
while before natural gas pipe¬

by a public service commission,
other
governmental agency.

They

Service

10 Western States and Alaska. The

lines

Gas

early bird in the business of LPG
distribution, and now delivers in

con¬

Com¬

The

for- submittal

legislature/ While I

the

various

endeavors:

mittee is presently hard at work

were

fully

state "attest

scientious

legisla¬

ture.

the

meetings held in all parts

seven

ses¬

economic realities is

ment

Petrolane

must

customer

;

pipelines—to farms, summer re¬ year, up from $1.02 in 1958. The LOS ANGELES, Calif.—Clifford
sorts, or outlying suburbs. Smart common sells over-the-counter at L. Bevier has been added tp the
and successful distributors usually 12% and pays a 5% dividend in staff of Walston & Co., Inc., 550
develop a "captive" market by stock. The company is rapidly South Spring Street. He was for¬
owning the bulk tanks, pressure growing and ably managed.
merly
with
Vanderbilt Invest¬
bottles and meters

some

to be: desirable

there

Hopes

./ ;

The;' Joint Legislative Commit¬

basis

were

fdr

changes in
pear

year

the

look

are

majority

opinion

financial

the^

community

Pana¬

here

Lastly,, the. banks' policeman

savings certificates and creation of a savings banks' bank.
Our

Cuba

horizon

the

Super¬
savings

competition as issuance of five

differences of

Haiti,

governing

and contrasts earnings, expenses and capital posi- '

%,, explores such proposals-to meet

mental

and

Three, the

guidelines

tions of large and small savings banks*

taken.

clouds

down

bank mergers;

Puerto

Two, he reveals latest

financing practices in the state of New York but adds, however,

company

distributes

Utah,

from

and
Florida. Tropical owns no LPG
plants but is an aggressive dis¬
tributor of
LPG for
household,
farm, industry and motor vehicles,
and a large scale merchant of the
related
appliances. The only

Corporation,

retail and wholesale busi¬

instead

course,

findings absolving savings banks from complaints about their mort-

vador

first
about

Island; and Lehigh Bottled Gas
retailing to 34,000 customers in
Connecticut, Rhode Island, Massa¬
chusetts

pro¬

distributing
Rico, Dominican
Republic,
Bermuda,
Panama,
Costa
Rica, Guatemala, El Sal¬

just four years ago and
serving over 300,000 custo¬
mers.
There are two major re¬
tailing
divisions:
Conservative
Gas serving 54,000 customers in

both

one's

trying to destroy each other's competition.

merchan¬

probably should

Tropical

LPG

gen¬

The
talk

stems

gasoline

manian

now

Corp.

The major uses

the
we

new

better

Gasoline

independent

wholesale

and

You

formed

company

Natural

into

$2.45

suggestions to remove one source of criticism.

oil from

wells, the manufacture of com¬
ponents for synthetic rubber prod¬
ucts, and gas manufacturing.
Now

largest

bined daily
capacity of 875,000
gallons, and from a half interest
in* a new plant at >St./ Bernard
Parish, La. with a potential daily
capacity of 380,000 gallons.
Texas Natural is well equipped
for
transportation
through
its
ownership of a fleet of 750 tank
cars, many trailer trucks, and it
has 130 million gallons in under¬
ground ••storage. facilities.
This
storage permits holding of inven¬
tory off the market in periods of
depressed prices.
•/Texas Natural Gasoline capi¬
talization consists of $11 million
in
long term debt and 1,835,000
shares of common now selling at
45. Policy has been to pay divi¬
dends in stock, present rate being
4%. Per share earnings have been
on
a
plateau for three years but
expansion of net should resume
shortly on the basis of enlarged
plant capacity, and the end of
extraordinary writeoffs.

takes al-

now

tions are the clean, fumeless com¬
bustion,

Coblcigh

•

Texas

per

1950

;

hope that the savings and commercial banks will progress
fields of service, employing new concepts and working to-

gage

ural

trucks, buses and taxis. For these
vehicles,
the .particular -attrac¬

miracu-.

and

net

In reviewing current New York State banking issues, Mr. Clark, one,
voices the

lively
share

diser of natural gasoline and LPG.

applications.
an

the

ducer

grown

uses for LPG

anti-freeze),

like ; commod¬
ity. It is trans¬
ported
under
pressure in a
liquid
form,

with

Production

and have

an? Tesi,ns (for Pasties), and
glycols.
Research
is
constantly

rate

1958.

provide LPG service

several states

(tor

re¬

fining.; It is

companies

virft Xi of.to?alinto ethyl alcohol
output, and con¬
verts the stuff

by-product of
crude

the

cal

growth

Some

time

Gasoline.

perceive

rising from. 19c in

buying.

uTtlie other growing

g a s, \

business.

volume

snould not be overlooked. Chcmi-

casipghead '
gas,

the

phenomenally.

nat-

sources:
u

propane

geous

It's

By G. Russell Clark,* Neiv York State Superintendent of Banks

integrated

Natural

Savings Banking

bit about

fully

Texas

—

successful

dividend

companies.

mentioned

one

quite

over-the-

It is in line for

counter.

increases in the next 24 months.

By Dr. Ira U. Cobleigli, Enterprise Economist
brief outline of the liquefied petroleum gas industry,
documenting its growth, and commenting on some of the highly

Some Current Issues

nationally among LPG companies.
Indicated dividend is $1.12 and

We've talked

Setting forth

ranks^ tenth

The Commercial and Financial Chronicle

(1790)

focus

TAX-EXEMPT BOND MARKET
BY DONALD D.

The

for

market

bonds has
over

generally improved
ago. The Com-

week

mercial

Chroni-

Financial

cle's High Grade State and
Municipal Bond Index declined from 3.47% (10/21/59)

improvement
occurred
during the latter
part of last week. On Friday*
usually a quiet day, activity,
sales, and firming of prices
3.44%.

The

sustained

were

able tempo.,

remark-

Markets Affected

All

Early this week, developsitu-

ments in the steel strike

ation

indicating possible settlement adversely affected
market

generally,
Government issues, particularly, were sensitive and for
a
brief
period satisfactory
bond

the

bids

difficult to locate,

were

The

corporate

was

also

instances

bond market
back,

set

severely.

some

•

confusing market
action, State and Municipal
bond prices eased, as represented by the Dollar-quoted
term issues. Quotations were
down from one quarter to one
this

evidence that bankers

MACKEY

quently indicated in some
detail.
Formidable market obstacles are receiving considerable emphasis this week, ineluding the steel picture
generally, the 'Treasu r y's
eight billion of new and^refunding issues, the terms of
which are scheduled to be announced today (Oct. 29) and
the high level of bond prices
compared with those prevailing a few weeks back. These
market factors were of seemingly less importance last
week, apparently because opportunism has developed as
a useful tactic both by dealers
and investors in the ever
changing complexities of-in-

favorable

vestment. Most of this stems

factors

from- the general tax structure and the interchangeable
P*rt that differing types ot
securities can play in it.

Maturity

3%%

1978-1980

3%%
3%
3%

1980-1982
1978-1980
1978-1979

3%%
3%%

1974-1975
1978-1979

Auth. (N. Y., N. Y.)

3%%

1977-1980

3%%
3*4%
3V2%
3V4%
31/4%
3%%

1978-1980
1980
1980
1979
1977
1977

—

New Jersey Highway
New York

(State)
Pennsylvania (State)
Vermont (State)
New Housing

Los Angeles,

SERIAL ISSUES .

Rate

—

Auth., Gtd._
-

Calif.

—-

Baltimore, Md.
Cincinnati, Ohio
New Orleans, La
-

Chicago, 111.
Boston, Mass

continued to

attract

Bid

—

Index

First Callable Date

Call

(as a whole)

Price

PUD No.

Wash.

1-1-1978

7-1-2013

1-1-1974

104%

3.35%
3.75%
3.70%

3.50%
3.90%
3.85%
3.85%

3.70%

Illinois

33*%
Illinois

4%%

Indiana Toll

market

the

measured

and

not

for

been

issue volume does
imminent.

seem

tax

exempt

New Issues Going

important

issues

new

Group at an interest cost of
4.445%. The issue has gone
well, with more than half the

Florida

are

4.50%

initial

offering.
scaled to yield

$21,150,000
County,
Control

Los

trict No.

District

issue

was

bought by a

including

Bank

America,

Bank, First National City
Bank, Bankers Trust Com¬

103

95%

+1%

4.08%

103%

73%

5.44%

Chase

Harris Trust & Savings

pany,

co^t of
yield from

5.38%

103

83%

+3*

4.42%

2.90%' to 3.75%. The issue is

103

4.12%

said

Virginia Toll Revenue
3% 9-1-1994
«•) Unchanged.

1960-1985

1962-1988

___

am.

11:30

a.m.

8:00 p.m.

November 2

(Monday)

2,100,000 -* 1960-1979
1,165,000>1960-1979

2:00 pju,
Noon "

November 3 (Tuesday),

Cerritos Junior College Dist., Cal.

1,000,000

1960-1979

9:00

Garland, Texas (gen. & revenue)__

:> 3,150,000

1960-1987

7:30 p.m.

Oak

Park

(City)

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

Southfield

Authority, Tex.
__________

y'%

1,900,000 "1960-1988

! 8:00

7,500,000 "1961-1979

_____

Shelby, N. C.:

1,250,000

p.m.

10:00 a.m.

3:30 p.m,

1,365,000- 1961-1985

;

a.m.

11:00 am,
,

Noon

1:00 p.m.

10:00

3.704%.

November 5
Hammond

Prices

a.m.

10:00 am.
11:00 am,
8:00 p.m.

(Thursday)

(Sanitary District), Ind.

4,100,000

1962-1986

1,950,000

1967-1979

Oklahoma Co. Indep. S. D. No. 89,
Oklahoma

4,000,000
3,000,000

Jackson, Tenn.

2:00p.m,
10:00

a.m.

______

1961-1970

10:00

a.m.

1960-1989

Noon

November 9

than

two-

(Monday)

Edina, Minn.

1,000,000
1960-1969
2,000,000
2,800,000
1965-1980
1,000,000 ' 1960-1984

Enfield, Conn
St. Joseph
School District, Mo.—
Santa Barbara High S. D., Calif—
November 10
Caddo

7:30 p.m.

4:0~o"pm.
10:00 a.m.

(Tuesday)

Parish, Parish-Wide S. D.,

Louisiana

5,000,000

1960-1979

1:30 p.m.

1,000,000

1961-1989

4:00 p.m,

3,720,000

1960-1988

10:30 a.m.

1,000,000
14,000,000

1964-1984

7,300,000

1961-1989

Dover-Eyota Indep. S. D. No. 533,
Minnesota

—_

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

District No. 1, N. Y
Mississippi (State of)

_______

(Greater

10-1-1962
*.

103

(*)

3.93%

1-1-1964

108

91%

-1

4.48%

104

83%

+1/4

The

5.08%

103%

10-1-1969
7-1-1958

104

1031%

103

86'A

1-1-1970

103

1031%

6-1-1959

101%

+'4

"
■

^'U/o

the

*■

412%

-4-1

4 776A

103

(*)

gan

103%

7-1-1959

104

9-1-1959

105

*■

(*)

November

10:00 am,

2,760,000

November 16

1962-1991

10:00 a.m.

1,000,000

Sacramento County, Calif

1964-1972

11:00 a.m.

(Monday)
2,475,000
'

November 17 (Tuesday)

Mass

5,800,000

Pima County School

South Carolina

11:00 am.

(Thursday)

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

& Boston,

Fenner

10:00 a.m,
-

,,,

_____

1960-1979

Noon

1,329,000

1962-1979

11:00 a.m.

10,000,000

District, Ariz.

(State of)____

November

Pressprich

4 40%

*.w/o

( )

3.85%

(*)

377%

Pierce,

California

Merrill

Incorporated, Stone &

1960-1975

1960-1979

Noon

Webster Securities and R. W.

4 01°'

o.yo,o
'*

3 «o'

Smith

-4-1/,

^'2

Lynch,

______:

Orange County Sanitation Districts

Goldman,

Company, Glore For-

Company,

Pascagoula)
Mississippi (State of)

(1962-1986)

Company,

3 95%

103

bonds

Halsey, Stuart, C. J. De-

Sachs &

3 93%

+/4

Authority sold $25,000,-

yesterday. The award went to
vine

3 70%
•

State

Pennsylvania ■" General

000-serial

4.51%

+3*

+1%

7-1-1963

+21/4

94%

4 30%

Port of

thirds sold.

4.79%

104

■

6-1-1959

1961-1989 ' 11:00

•

3,820,000

Turnpike

7-1-2004

9,500,000

Dist., Mich.y 2,886,000

Corpus Christi, Texas———
Kenosha, Wis.

interest

89%

7-1-1960

Trl-Oam Project, Calif.

10——_

Utica Common School

Manhattan

104%

Ohio Turnpike

6-1-1993

8:00 p.m.

T960-1982 y 8:00 p.m.

An¬

4.24%

H«» York Thruway Authority

•Wchmond-Petersburg

3,300,000

Hempstead Union Free School Dis•

: 2:00 p.m.

1960-1982

Commission

Fla—_______

California,

3.91%

1-1-1963

Authority
3%%, 6-1-1992
Pennsylvania Turnpike Authority

County),

1960-1988

•

+1%

5-1-1962

3.10% 7-1-1994

Development

(Polk

•

Roanoke, Va

bonds sold

+1/4

1-1-1958

Hew York Power Authority
4.20%
1-1-2006

;
.

1,300,000

have received

95%

Authority

1-1-1995

1,233,000
____

Camden School District, N.

San Antonio River

This week's

871/4

Turnpike Authority

5-1-1994

Central S. D. No. 5, N. Y

Camden, N. J——

Port of Seattle, Wash

Well

103%

102%

(Thursday)

future. However,

near

103%

7-1-1960

Port Authority
4%%;: 10-1-1998
Hew Jersey Turnpike Authority
3%% 7-1-1988
Hew York Power Authority

3.05%

October 29

% These

bond
likely, to prevail

seem

group

Massachusetts

3.10%

more.

7-1-1967

1-1-1989

3-20%

con¬

1-1-1962

Bridge Authority
1-1-1994

3.30%

about

month

new

in the

name, of bor
of issue, maturity scale, and hour at which
be opened.
t
)
/

1-1-1978

7-1-1994

Halne Turnpike

bids will

Heavy

information, where available, includes

of Brookhaven, Smithtown and Islip

$200' million

has

stant

investor interest and de¬

mand,

4.43%

Highway

■assachusetts

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

very

4.55%

■acklnac

still

ity type offerings. The market
balance, relative to new issues

Bank,

7-1-1992
Kansas Turnpike Authority
3%% 10-1-1994
Kentucky Turnpike Authority

Larger Issues Scheduled For; Sale

State, Municipal and Author¬

The

1-1-1965

4%%

125,000 State of New York

serial bonds up for sale on
]\jovember 18. This continued'

Brown & light schedule is unusual for
The interest this time of year. v

by the Blue List is

below

well

geles

Jacksonville, F!a. Exp.

3.40%

favorable. The Street Float

Yield to

Maturity

5-1-1966

3%%: 1-1-1994

out to

No. 2

11-1-2005
Toll Highway
1-1-1995
Toll Highway
1-1-1998

Alex
group.

Barney &

rower, amount

4-1-1962
PUD

pany,

Company,

investors

7-1-1962

Grant Co., Wash.

%
Smith,

large

one

____

Florida Turnpike Authority

3%%

Trust Company, Harris Trust

includes only

general market offering: $55,-

4-1-1995

Guaranty

+1%

105%

large or important financing,
The 30-day calendar, at pres-

Trust ent,

Bankers

Company, Morgan

because of their gene r o u s

(1961-1983)

7-1-1995

Man-

—________

3.44%

109

Asked

Offering
Net Changes
Price from Prev. Week

100

Bank,

were

Chase

November 4 (Wednesday)
good investor attention. The
3.60%
;
8,335,000 v. 1960-1986
$23,300,000 Consumers Public Atlanta, Ga.—
3.45% - 3.30%
"
~
Power (Eastern) D i s t r i c t, Crawfordsville School Bldg.,Corp.,
3.50%, 3.35%
Indiana
1,995,000
1962-1990
3.45% 3.30% Nebraska, serial issue (1963Humboldt
Bay Municipal Water
\
3.30% 3.15% 1992) was sold to the Halsey,
District,, Calif._
10,700,000
1964-1998
3.25% 3.12%
Stuart, Blyth & Company, Manitowoc County, Wis.___
1,500,000 * 1960-1974
3.40% 3.25%
Eastman Dillon, Union Secu¬
Port Arthur, Texas
2,950,000
1963-1989
3.85% 3.70%
3.65%
3.50% rities, Lehman Brothers Roseville, Minn.
1,200,000 • 1960-1980

Chlcago-O'Hare Airport
4%% 1-1-1999
Chicago Reg. Port

the

yields. The technical position

Flood

Issue—

(1961- 1999)
to

3.75%

(Prices and yields are approximate)

3%%'

hattan

Despite the obstacles con¬
fronting the bond market,
State
and Municipal; issues'

bond

DOLLAR BOND QUOTES AND RELATED INFORMATION

bonds
awarded

Investors

The bonds

October 28, 1959

level

Company

they may be partly nullified
by factors more immediately
affecting the Government and
The subject of tight money Corporate bond markets/
; : /

REPRESENTATIVE

California (State) —
Connecticut (State)

Tax-Exempts Still Attract

Co.,

ket

many

MARKET ON

Chelan

ag¬

supplying '• short-

banks are programming this
important and profitable
inactive on Monday. The new
issue market as reflected banking adjunct. Thi3 seems
through Tuesday's sales rep- altogether desirable, but from
a bond man's
viewpoint it ag¬
resented little change from
gravates the tight money
the level reached late last
week, as will be subse- problem.

are

Thursday, October 29, 195^

New Issue Calendar Light
term loans to small business
-The $20,000,000 Baltimore
The New Issue schedule for
is set forth
as
many
large County, Maryland
serial the week ahead-includes no

gressively

instances, also has in some degree been
However, the secondary mar- overlooked during the past
ket in yield quoted bonds weeks. It is again brought to
point

The

quieted and became

exempt merely

tax

Florida.

terest cost. This general mar- cost was 3.77// and the bonds
ket issue may attract investor were scaled to yield 4.10%,
interest at this favorable mar- ■
* ;
"

by reports at the ABA

Convennon

count.

3.755%

The
.

& " Company
interest

cost

ac¬
was

The Drexel & Com¬

pany group

bid

3.770%

in¬

Greater Baton Rouge Consolidated
Sewer District, La
:

New York

(State of)

Poughkeepsie, N. Y.__
Rochester Spec'l S. D. No. 4, Minn.

(Wednesday)
'

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

1960-1989
1960-1969

2:00~pm-

-2,500,000

1961-1983

2:00 p.m,

6:0Qp.m.

Volume

190

Number

5894

The

Commercial and Financial Chronicle

(1791)

triW+'fd,

+j>.

•••

'/y //f

"*> / y

New Issue

m,150,ooo
LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
•

Los

Angeles County, California

3%% Bonds
Dated

May 1, 1953

Due
and Registration

Payment

May 1, 1961-83, incf.
*

Principal and semi-annual interest (May 1 and November 1) payable, at the option of the holder, at the office of the
Angeles County in Los Angeles, Calif., or at any fiscal agency of the County in New York, N.
Y.,
or in
Chicago, III. Coupon bonds in denomination of $1,000 registrable only as to both principal and interest.

AMOUNTS, MATURITIES

Treasurer of Los

hi the

Tax

Exemption

AND YIEIDS OR PRICES
(Accrued inlerett to bo added)

;

opinion of counsel, interest payable by the District upon its bonds is exempt from all present
Federal and State
of California personal income taxes under existing statutes,
regulations and court decisions,

Yield

Legality Tor, Investment

Price.

1961

2.90%

1962

$935,000
935,000

We believe that these bonds

•

Due

Amount

3.00

1963

3.10

935,000

1964

3.15

935,000

1965

3.20

935,000
'

legal investments in California for savings banks, subject to the
legal limitations upon the amount of a bank's investment, and are likewise legal investments in
California for other funds which may be invested in bonds which are
legal investments for savings banks, and are eligible as security for
>
deposits of public moneys in California,
are

3.25

1966

935,000
935,000

1967

3.30'

•

935,000

3.35

1969

3.40

935.000.

1970

3.45

935,000

Purpose and Security

1968

935,000

1971

3.45

These

bonds,. issued under provision of the Los Angeles County Flood Control Act, as amended, for
various flood control
purposes, in the opinion of counsel constitute the legal and binding obligations of
the Los
Angeles County Flood Control District and are payable, both principal and interest, from ad
valorem taxes which
may

be levied without limitation

property ill said District and which, under the laws
rate or amount upon

to rate

or amount

935,000

3.50

1973
T974

935,000

1975

19 76

935,000

all taxable personal property, except certain classes thereof, jn said District,

.3^0

935,000

all of the taxable real

upon

in force, may be levied without limitation a& to

now

1972

935,000

3.55
3.55

3.60

935,000

Gain, Amortization of Premium

„

The above bonds

offered when,

and if issued and received by the underwriters listed below, as well
underwriters not shown, whose names will be
furnished on request, and subject to approval of
legality by Messrs. O'Melveny & Myers, Attorneys, Los Angeles, California.
are

3.65

1980

3.70

1981

3.70

935,000

1982

100

1983

100

Legal Opinion

1979

935,000

580,000

•

3.65

935,000

initially issued by the above named political subdivision at not less than their par value, and
gain may accrue on bonds purchased at a discount. Investors are required under existing
regulations to amortize any premium paid thereon,
*
•
••

*.*'•

3.60

1978

935,000

Ihese bonds will be
taxable

1977 "•

935,000
Tax

other

Bank of America N.T. & S.A.

The Chase Manhattan Bank

The First National
of New

Blyth & Co., Inc.

The First Boston Corporation

Smith, Barney & Co.

-1

Chemical Bank New York Trust

Company

Bankers Trust Company

Company

First National Bank of Oregon

William R. Staats & Co.

Mercantile Trust

son frond,eo

lot Ang./e.

•

C J. Devine & Co.

Drexel&Co.

R.W.Pressprich&Co.

Hornbiower & Weeks

Reynolds & Co.

Continental Illinois National Bank
and Trust Company of ChicaRO

Glore, Forgan & Co.

Merrill Lynch, Pierce, Fenner & Smith
Incorporator!

Seattle-First National Bank

Company

Morgan Guaranty Trust Company

California Bank

]

R. H. Moulton &

Bear, Stearns & Co.

American Trust Company

,•

Lazard Freres & Co.

Dean Witter & Co.

Harris Trust and Savings Bank

of Now York

Security-First National Bank

.....

The Northern Trust Company

City Bank

York

The Philadelphia National Bank

J. Barth & Co.

Equitable Securities Corporation

Ladenburg, Thafmann & Co.

John Nuveen & Co.
(Incorporated)

Bacon, Whipple & Co.
Laidlaw & Co.

William Blair & Company
Lee

Francis I. duPont & Co.

Higginson Corporation

Schoellkopf, Hutton fcPomeroy, Inc.

First National Bank in Dallas

Mercantile National Bank at Dallas

Shearson, Hammill & Co.

Stone & Youngberg

First Southwest Company

Fitzpatrick, Sullivan & Co.

National State Bank of Newark

Trust Company of Georgia

Ira Haupt & Co.

E. F. Hutton & Company

Republic National Bank of Dallas

Wertheim & Co.

Andrews & Wells, Inc.

L. F. Rothschild & Co.

Clark, Dodge & Co.

Coffin & Burr
Incorporated

R. S. Dickson &

Company

First of Michigan Corporation

Gregory & Sons

Incorporated

Irving Lundborg & Co.

Lyons & Shafto

W. H. Morton & Co.

Incorporated

Chas. E.

J. B. Hanauer & Co.

J. A. Hogle & Co.

Incorporated

Weigold & Co.

Bacon, Stevenson & Co.

New York Hanseatic

Corporation

Wm. E. Pollock & Co., Inc.

Robert W. Baird & Co.

Field, Richards & Co.

Company ' Industrial National Bank of Providence

Incorporated

Stroud & Company
Incorporated

Commerce Trust Company.

Kanta« City, Mo.

Th& First National Bank

Kamas

The Fort Worth National Bank

of Memphis

The Illinois

Ginther &

Kalman & Company, Inc.

Shuman, Agnew & Co.

Company

Blunt Ellis & Simmons

Burns, Corbett & Ptckard, Inc.

C. F. Chiids and Company

Kean, Taylor & Co.

McDonnell & Co.

Hill Richards & Co.

Glickenhaus & Lembo

Spencer Trask & Co.'

Henry G. Wells & Co., Inc.

City National Bank and Trust Company

Incorporated

Horner, Barksdale & Co.

G. H. Walker & Co.

Dallas Union Securities Co., Inc.

City, Mo.

Company

Allan Blair &

A. M. Kidder & Co., Inc.

Roosevelt & Cross

City National Bank & Trust Company

Incorporated-

Ernst & Company

Kenower, MacArthur & Co.

Incorporated

A. G. Edwards & Sons

Hirsch & Co.

Corporation

Barcus Kindred & Co.

Julien Collins & Company

Fahey, Clark & Co.

of Chicago

McMaster Hutchinson & Co.

Stern, Frank, Meyer & Fox

Stern, Lauer & Co.

Stubbs, Watkins & Lombardd, Inc.

Incorporated

Third National Bank

Tripp & Co., Inc.

Nashville, Ttnn.

Fred D. Blake & Co.

Van Alstyne, Noel & Co.
1

R. D. White & Company
'

Breed & Harrison, Inc.

Dittmar & Company, Inc.

J. R. Wiiliston & Beane

Robert Winthrop & Co.

Wood, Gundy & Co., Inc.

Federation Bank and Trust Co.

First National Bank
of

Frantz Hutchinson & Co.

of North Carolina

Newhard, Cook & Co.

Hooker &

Fay

Johnston, Lemon & Co.

Lawson, Levy, Williams & Stern

October 28, 1959

A circular

Thornton, Mohr and Farish
relating to these bonds

of Saint Paul

The National City Bank

Ryan, Sutherland & Co.

Seasongood & Mayer

of Cleveland

Northwestern National Bank

Boyce

Minneapolis

Mitchum, Jones & Templeton

J. A. Overton & Co.

Piper, Jaffray & Hopwood

The Provident Bank

of Minneapolis

The First National Bank

First Union National Bank

Stein Bros. &

Arnold & Crane

•

Fahnestock & Co.

may

Tilney & Company

Wachovia Bank and Trust Company

be obtained from any of the above underwriters,

well

Arthur L. Wright & Co., Inc.

other underwriters

not shown whoso names will be

Zahner and Company
furnished

request.

The Commercial and Financial Chronicle

(1792)

Electro

DEALER-BROKER

Instruments,

Sunbeam

Corporation

and

Texas

In¬

Angelica Uniform Company—Data—Scherck, Richter Company,

INVESTMENT LITERATURE

Fourth

Street, St. Louis 2, Mo.

Also in the

are
data on Day Brite Lighting, Hydraulic Press
Company, Interstate Motor Freight System, Long Mile

Rubber Corp., National Oats Company, Old Ben
and Pickering Lumber Corporation.

AND RECOMMENDATIONS

Atlas Powder Company—Data—Hornblower &
UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE

same

circular
Brick

IT IS

Thursday, October 29, 1959

COMING

struments.

320 North

EVENTS

Coal Corp.
IN INVESTMENT FIELD

Weeks, 40 Wall

Street, New York 5, N. Y.

PLEASED

Bank

TO SEND INTERESTED PARTIES

of America, N. T. & S. A.—Analysis—Bateman, Eichler
Co., 453 South Spring Street, Los Angeles 13, Calif.
Co.—Report—A. M. Kidder & Co., Inc., 1 Wall
Street, New York 5, N. Y.
In the same report are data on
Draper Corp. and PetroJane Gas Service. Also available is a
report on Vendo Company.
Dura
Corporation—Analysis—Swarthout & Kemmerer, Inc.,
165 Broadway, New York 6, N. Y.
George Weston Limited—Review—Ross, Knowles & Co., Ltd.,
25 Adelaide Street West, Toronto, Canada.
Great Northern Paper Company—Data—Montgomery, Scott &
Co., 120 Broadway, New York 5, N. Y.
Lake Ontario Portland Cement Company Ltd.—Analysis—R.

THE FOLLOWING LITERATURE:

Diamond Alkali

Burnham View

Monthly Investment Letter

—

Burnham and

Company, 15 Broad Street, New York 5, N. Y.
able

current

Foreign

Also avail¬

Letter.

Canada: Cross Currents in

.Trade—Review—Bank of Montreal,

Montreal, Que., Canada.

Canadian Common Stocks—Figures
Bros.

Company Limited,
•
v
.V-.

* '

Canada.

selected

issues—Burns

44 King Street, West, Toronto,

..J

■'

•

Utility

Stocks—Review—With

list

appear

Lehn & Fink Products

issues which

New York 5,

N. Y.
Gold—Analysis—W. E. Hutton & Co., 14 Wall Street, New York
5, N. Y.
.:

lied

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

Investment Women's
Club dinner and meeting at the
Can Can Room, Hotel Dyckman,
Nov. 29-Dec.

Stores, May Department Stores, Missouri Portland Ce¬

data

Comparative analysis of 23 new
companies—Ralph B. Leonard & Sons, Inc., 25 Broad Street,
York 4, N. Y.
Also available is a report on Citizens

25th

Also in the same circular are
Olin Mathieson, Greyhound and Universal Match.

New York

York

Central.

with

Y.,

particular

New York, Chicago

Southern,

j
Report—Thomson & McKinnon, 2 Broadway/

—

Sharon

Steel, and Wheeling Steel—du Pont, Homsey & Co.
Street, Boston 9, Mass.
Time Chart—Showing time difference in over 100 coun¬

31 Milk

compared with New York Eastern Standard Time,
map of Time Zones in the U. S. including Alaska

Union

Telegraph Company—Analysis—Laird,

Electric

Power

Co.

Memorandum—The

—

including

and Hawaii

—

Manufacturers Trust Company, International

Banking Department, 55 Broad Street, New York 15, N. Y.
®

•

Climax Inc.—Report—Schweickart

& Co.,

Broadway, New York 6, N. Y. Also available is a report on
the Tax Advantages of Straddles.
American Photocopy — Data — Bache & Co., 36 Wall Street,
New York

5, N. Y.

Also in the

same

circular

are

data

,k,

•

•
'

New

.Lease Plan

CHARLOTTE," N. C.—Wendell H.
Jr.
and. Charles
C.
Pilgrim have become associated

L. J. Goldwater
On Nov.

Changes

with Morrison & Co., Inc.,

With Shearson Hammill
(Special to The Financial Chronicle)

1 Enid K. Rubin will be

admitted to limited

partnership in
L. J. Goldwater & Co., 25 Broad
Street, New York City. On Oct. 31,

Clark

now

Hammiil & Co., 1125 Wall Street.
was
Lee F. Goldwater will withdraw He
formerly with Merrill
from limited partnership in the Lynch, Pierce, Fenner & Smith
firm. '

Incorporated.

Eastman Dillon Adds

joined the staff of P. De Rensis
126 State Street, mem¬
bers
of
the
Boston ,,Stock
Ex¬
change.
has

& Co., Inc.,

Joins First California

Merrill Lynch Adds

(Special to Ths Financial Chronicle)

DIEGO, Calif. — Robert J.
Genett, Edwin H. Kelley, John S.
Kleven, Ronald L. Stout are now
connected with Eastman Dillon,
Union
Securities
&
Co.,
415

SAN

ford
to

Calif. —Wil-

FRANCISCO,
W.

the

Nelson
staff

has

been

First

added

California

Company, 300 Montgomery Street,
members

Stock

Laurel Street.

Joins P. DeRensis

—

the

Pacific

Coast

(Special to The Financial Chronicle)

DAYTON,

Ohio

—

William

James has become connected with

Merrill Lynch,

Pierce, Fenner &
Incorporated, American
Building.

Smith

Exchange.

Hagen Adds

(Special to Tnfe Financial Chronicle)

financial institutions only—

Heublein, Inc.

Liberty

(Special to The Financial Chronicle)
Everett H.
with
Shearson, BOSTON, Mass. — Harry Michaels

JOLLA, Calif.

—

Merritt L.

Owen has been added to the staff

Long Mile Rubber

International

■'

Edgerton,

Illinois

Stock Issues

Yacht Co., Inc.

"vi!

(Special to The Financial Chronicle)

.of
Owens

)

PORTLAND, Oreg.

Recent

7.
■

Morrison Adds to Staff

E. I.
For

Gary D.

Life Building;

SAN

American Metal

—

associated with E. F.

Company, 920 Baltimore

Avenue.

Bissell

Company, 231 South La Salle ;Street, Chicago 3, 111.

(Special to Tiie Financial Chronicle)

CITY, Mo,

now

Hutton &

Meeds, 120 Broadway, New York 5, N. Y.

Wisconsin

reference to Kansas City
St. Louis, and New York

New York 4, N. Y.
Steel Stocks — Review—With particular reference to Armco,
Colorado Fuel & Iron, Detroit Steel, Jones & Laughlin,

tries

KANSAS

Irish is

Retail Trade

World

Western

the

E. F. Hutton Adds

Allied Stores Corporation.
-

<Special to The Financial Chronicle)

—

Ballroom

Hotel Biltmore.

Corp.—Memorandum—Blyth & Co., Inc., 135
South La Salle Street, Chicago 3, 111.
Supercrete Ltd.—Analysis—Straus, Blosser & McDowell,, 39
South La Salle Street, Chicago 3, 111.
.
U. S. Freight Co.—Memorandum—Hill, Darlington & Co., 40
Wall Street, New York 5, N. Y.
'
\
/.
U. S. Steel Corp.—Memorandum—Dean Witter & Co., 45 Mont¬
gomery Street, San Francisco 6, Calif.
•
*
Warren Brothers Company — Report — Reynolds & Co;; 120
Broadway, New York 5, N. Y. Also available is a report on

Profit Situations in Smaller Companies—Semi-monthly publication of comment and analysis of smaller companies—$2.50

Security Dealers As¬

"Grand

the

Shops.

4, N. Y.

the

sociation 34th annual dinner in

Roddis Plywood

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in; the National Quotation Bureaiu Averages, both as to
yield and .market performance over a 20-year periodNational Quotation Bureau, Inc., 46 Front Street, New York

for current issue; $15 for 3 months; $50 a year—Investment
Associates, P. O. Box 14, Hillsdale, N. J.
Railroads—Analysis—Halle & Stieglitz, 52 Wall Street, New

Wheeling Steel

meeting

April 8, 1960 (New York City)

Analysis—H. Hentz & Co., 72 Wall
Also available is a memorandum
Corp. and an analysis of Saco Lowell

annual

Sheraton Dallas.

—

Life Insurance

5, N. Y.

the

April 6-7-8,1960 (Dallas, Tex.)
Texas
Group
of i Investment
Bankers Association of America

Street, New York 5, N. Y.

New York

Convention

Annual

Americana Hotel.

River Brand Rice Mills

Over-the-Counter Index—Folder

4,1959 (Bal Harbour,

Fla.)
Investment Bankers Association

New

Company.
New York City Bank Stocks—Comparative figures as of Sept.
30, 1959—The First Boston Corporation, 15 Broad Street,

(Minneapolis,

Twin City

Ainsley Building, Miami 32, Fla. Also available is a memo¬
randum on Texas International Sulphur Co.
Public Service Electric & Gas — Data — Goodbody & Co., 2

—

Annual

Germantown

Minn.)

Aetna Insurance Co.; Al¬

18, 1959

Nov.

Broadway, New York 4, N. Y.

Life Insurance Companies

7th

Dance

Cricket Club.

Metropolitan Bank of Miami—Memorandum—Kakouris & Co.,

York.

Tinders Association

Philadelphia

Dinner

6, N. Y.

Yamaichi Securities

—

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

Investment
of

Maytag—Review—Ira Haupt & Co., Ill Broadway, New York

of the Steel Industry.

(Philadelphia, Pa.)

14, 1959

Nov.

Corp.—Analysis—Hayden, Stone & Co.,

memoranda

the Boca Raton Club.

Incorporated, 70 Pine Street, New York 5, N. Y.
are

Convention

Annual

ciation

Louisiana.

available is

survey

National Security Traders Asso¬

ment, Pepsi Cola, TXL Oil Corp. and Union Oil & Gas Corp.

Securities

Smith

Also available

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

(Boca Raton, Fla.)

Nov. 1-5, 1959

25 Broad Street, New York 4, N. Y.
Also available is an
analysis of American Motors Corp.:
Magnavox Company—Report—Merrill Lynch, Pierce, Fenner

interesting—Shearson, Hammill & Co., 14 Wall Street,

dement Co. and

at the Sheraton Jefferson Hotel.

Broadway, New York 5, N. Y.

annual convention

Clubs

ment

Co., Inc., 160 Broadway, New York 38, N. Y.
Lceso.na Corporation — Report — Harris, Upham & Co., 120

Objectives—Suggested
issues—Hemphill, Noyes & Co., 15 Broad Street, New York
5, N. Y.

Association of Invest¬

National

G. Worth &

Common Stocks for Various Investment

Electric

Oct. 30-31, 1959^St. Louis, Mo.)

Cubic Corporation

Hagen & Co., American

Bank Building.

Florida Palm-Aire

Joins E. F. Hinkle

sell

(Special to The Financial Chronicle)

Hugh W. Long & Co., Inc.

Space Components

PORTLAND, Oreg;

Executone Inc.

Waddell & Reed

Frisbie has become affiliated with

Branson

Crowley's Milk Co.

Loeds

Instruments

Travelwear,

Tool Research &

Inc.

large

E. F. Hinkle & Co.,

Inc., Equitable

Building.

With Walston & Co.

Perfect Photo, Inc.

Paddington Corporation

National

(Special to THE Financial Chronicle)

Key Co.

Recovery Corp.

Call.

— Frank E.
joined the staff of
Walston & Co., Inc., 901 Southwest
Washington Street.

PORTLAND, Oreg.
Shafer

•

Sold

Bought
Prospectus

Royal C.

MCA Inc.

Eng.

Oil

Marketing Department

has

Joins

request

Capital Sees.

(Special to The Financial Chronicle)

Troster, Singer & Co.
Members New York Security Dealers Association

74
.

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype: NY 1-376; 377; 378

Merrill Lynch, Pierce, Fenner & Smith
INCORPORATED

70 PINE STREET

NEW YORK 5, N. Y.

Offices in 112 Cities

CHICAGO,

111.—Andrew S. Mes-

Jr. has become affiliated
with Capital Securities Company,
sick,

Street.

South

was

formerly with Capital Secu¬

rities
&

Co.

Salle

209

and

Mitchell

Hutching

Volume

190

Number

5894

The Commercial and Financial Chronicle

(1793)

«■».

TVrvll

UQIISLY JJGDOSllS in

concerned,
the wartime

was

another

war

not

Continent

generally unknown spectacular expansion of dollar deposits in
Londoiv most of which belongs to continental holders, is described

(fhina

with
witn
Bloc

th^it

the

significance interpreted by Dr. Einiig. Stumbling upon this
reportable news by chance in preparing a revision of his book, "The

could

affect

holders

pected to be continued

political atmosphere that

if the

even

its

ban

the

The London fimarket witnessed during

the

result from

lifted.

nancial

the last two years
of

considerable

escaped J
most

change

thus

importance which

of money rates have

al-

result

a c

ti:ve

changed as a
in Lon-

money

Lai
Paul

banks,
accep tance,

Einz.^

from abroad

United

■■•-■

■

London

their

branches

banks have

overseas

holders

anxiousJo

been

very

States

erence

to
or

the

nationals

receiv-

interest

tradi-

facilities.

holding with

promptly

considerable

call money
six months or

Most

more.

these deposits are

that

their

this

it
is

...

T1.

■

instead

n;f.

Cate svstem

;

the

near'

future

would not necessarily
;

LOS

which has developed

ANGELES,

Lynch/ pierce?

far

For

1421, ChestnutrSt^ annourice

•

them

523

was

•

previously with

& Co.

With

Peter*

Writer

witn reters, Writer

(Special to the financial <?»onicm>

generally

sterling

DENVER, Colo.

Dale

—

Join* Homblnwer

been

added

the

E. Frey
staff

this

activity is
scale, there is

Tins

never

724 Seventeenth Street.

ac-

reference to it in the financial

any

■

is.

neither an,offer to sell

dollar

deposits

dollar credits

are

charged

never

happened to stumble

Theory

dollars

sterling by

any

of these securities.
,

V
October 29, 1959

$30,ooo,«()()

Most of these trans¬

converted

are

Hilton Hotels

means

a swap

into

6% Subordinated
Attention

Deserves

practice is of course not
but its spectacular expansion

situation.

mature

entirely

an
as

yet

what

extent; the system that has
developed has come to stay. But
owing to its present importance,
and owing to the possibility that
ta some extent at any rate it will
remain

permanent,

deserves

Oilcrccl in Units consisting

of a Debenture in the .principal amount of $1,000 with a Warrant attached en'
purchase 15 shares of Common Stock at a price of $42 per share to and including
October 15, 1963, at $46 thereafter to and including October 15, 1967. and at $50 thereafter to and includ'
ing October 15, 1971, the expiration date of the Warrants. Warrants may not be detached from Dc

titling the holder

pre¬

whether," and

.say.

Sinking Fund Debentures due 1984

With Common Stock Purchase Warrants

The

since 1957 has created

Corporation

trans¬

action.

new

buy

quoted. I

give rise to foreign
exchange operations, except when

new,

offer

the prac¬

actions do not

the

by the Prospectus:

of Forward Exchange for

edition.

new

solicitation of

book The

prewar

bentures

exercised prior to

Common Stock is

February 1, 1960. Upon the exercise of Warrants, the purchase price for the
payable at the holder's option either in cash or by surrender of Debentures at their princi'

pal amount.

certainly

•

attention

The expansion of this dollar de¬

posit market dates from the
taken

ures

sterling.

sterling

trade

1957

A ban

was

credits

meas¬

defense

then imposed
for financing

Price

between

foreign countries,
also on sterling
credits for re¬
financing goods after the usual

$1,000

per

Unit

(Plus accrued interest from October 15, 1959 to date of delivery)

period allowed for the completion
of the shipments was completed.
Although the former ban has since
been

repealed,

financing credits

the ban on re¬
is still in* force

Copies of the Prospectus

the time of writing.
The im¬
position of these bands two years
ago deprived international trade
at

much-needed

long

London

way
was

was

facilities.

Before

British

may

he obtained in

any

State only from such of the undersigned

lawfully offer these securities in such State.

-•

found by which

able

continue

perform the functions affected by
the
restriction
without
thereby
increasing the pressure on sterling.
The

authorities

raised

objection to the re-lending abroad
of foreign currency deposits re¬
ceived from abroad.

During 1957-

1958 rates paid in London for such

Carl M. Loeb, Rhoades & Co.

1/t

Merrill

Lynch, Pierce, Fenner & Smith
Incorporated

Mc-

Weeks, 134 South

La Salle Street.

NEW ISSUE

tice accidentally in the course of
inquiries I have been making in
the City in connection with the

revision

nor a

The offer is made only

press", and rates of interest allowed

Wee Ire

CHICAGO, 111.—William

announcement

■»

,.Cord has become connected with

in dollars.

considerable

•

(Special to the financial c:ip.onici.e)-

currencies,
in
especially
francs, Deutschmarks, and
guilders, but not nearly on the
scale

■»

Joins nornoiower, -Weeks

•

other

Although

«•

speaker at the meeting of - the
Cleveland Society of Security Analysts to be hekl Nov. 4.

Swiss

same

.-registered

r;'.'-:'.V;*

Merrill CLEVELAND, -Qhio—J.': Mo Ver
Smith Meulen, President of.the AmeriWest Sixth can
SeatinS Co.,; will; be guest

Peters, Writer & Christensen, Inc., _Hornblower &

that of

'<*

of these dollar credit facilities is

than

.Cleveland Analysts to Hear

has

Swiss lower

that

vioium® 01 transactions m ctoi
level.

PHILADELPHIA, ;Ra—Parrish- &

Co„

that John S. -Porter; and William
M. Davison, III, have become as¬

with

Fenner

Incorporated

fkl

representatives.;

Calif.—William

N* Levine is now

this Bache

mean

Pa^k

(Special to The Financial Chronicle)

now

But

With

fascinatingly intri-

speaking the cost to the borrowers

Yet another reason, which oper-

especially

•

Courts Adds to Staff

sociated with

volume of transactions in dol-

pre-1957

ates

.Co.

Joins Merrill Lynch

lar deposits would shrink to its

of in New York

Fear U. S. Freezing

There1 is^simUa^market also^

Corpn-! Limited

{Special to The Financial C:fnotion:)

concerned.;

„

psychologically strong.

re-lent abroad

dollars, but often they are coninto sterling to cover do-

verted

ATLANTA, Ga. — Jack D. Levin
the
h:« been added to the staff of

p
aeyeiopett
unnotlced except by those directly

another
need

and

new

ed "}i„i J
i?
that sterlmg 1S te<-hnlcally and street.

deposits

taxation, inis can oe avoiaeci 11
the interest is earned in London

deposits, ranging
to time deposits

from

™

should not be subiect to American
n

amounts of such

anxious

are

iV-

ft* Th* Midland Company Lim-

> These.are but a few aspects of

London bank which

re-lends

Frenchman' who

and

Gerald

in preference to realiz-

Jr11^111 is.affiliated With Mid-

borrowing in Lombard

Street,

is attracted by the higher deposit rates
id in London and deposits his

earn:

Government,

Rylev is Resident Manager -"'
i.
Z.'
® 7
Manager,

pressing need for funds, in pref-

fears

Frenchman having dollars

chant

and

ffu T!
of the dollars

sterling the proceeds of

these dollar deposits to meet some

short-term financing. What is inregulations. But that is not.„-deed a drastic
departure from
the only reason why it has become
London's tradition is that the fiso
popular to deposit dollars in
pancing is done nob in sterling but
London.
A number of European jn dollars.
Governments have no agreements
Quite nossiblv the ban on
reQuite possibly the ban on reon
double taxation with the

m e r-

houses,

vert into

come.

its

arise'

allowed to pay under .Federal Re-

its.- London

banks,

fulfilling

Situations

d0n banks

serve

developed in
dollar
depos¬

cheaper

irir

market,

Canadian: securities.

this market

Government securities

bigheL interest, on their dollar
deposits than American banks are

arket. has

com mere

L t
Most

tinental

th is" country
and abroad. A

for

these

the London

^
S?reetP T?ew V?,,
3^
street, NfiW York^Clty^,to. dc&l

some degree o

denosits and

"XT

>nal role as international banker
.^uveiimieiu secwiues. at ua courts & Co. -11 Marietta Street
by acting as in^rmedjary through wrong moment. With^
Northwest, members of the New
whose hands most of this tiaffic dollars ^at a discount, the profit York Stock Exchange. He was
V1
deposits pass. Veiy orten on |jle swap reduces the cost of formerly with John H. Kaplan &

_
re-

deposited
.whh London banks belong to con-

com¬

mentators

ing

for

time to

dollar

u .vaiu*uicu±
tLt w
1

-•

Midland

fron time to time in which Lou-

liable

■'

VJDGIIS 111 TvGW YOrk
"A 1YOW1U11V

the

between

The^..1S

the

financial

available
u

co.m-

attention

very

became

London

lending. In 1959 the relative levels

to have

seems

or so

Even

monev

international

some

competition

competition between
«n

Summit Meeting

altogether for

deposits were relatively high ajnd
were able to attract deposits which

—

this

from Curtain.

relaxation

sterling re-financing—

growth—is

.i_no", remove

LONDON, Eng.

Soviet
soviet

also

side

the
tpe

in Lonthem in Lon-.
even
nationals; So even^

arranges
arranges

their
their

two sets of facilities.

Theory ofTorward Exchange," the noted British economist explains
the reasons for this development and
why the practice can be excause

will

"rolH

with
witn

and
anci

unina

v~\

after the removal of the ban there
removal
ban there

general might conceivably
lead to freezing measures which

and its

the

don for
don for

the

IVllQlSXLCt "v7d,H3,CllSJl

charged by the Lonand- by
ana
Dy
the ioreign
me -foreign

banks
oariKs

banks that
banks that

considered

likely, it is widely'feared

"\yf* jl

commission
don
uun

Even though the outbreak of
though

war.

The

;

ceptance credits, allowing for the

correspondwas no corresponding measure in Britain during the
ing »easOre in Britain during the

LlOnOOn
J-*V/±±VAV^11

AXA

are

memory

freezing of deposits in wit; unueu
xicczixig ui ucpuMis m the United

By Paul Einzig

the

T Av\/1aW States. There
States. There

iia

xy viiwx

is
•

T^A'nAriiln

holdings of dollars

The Commercial and

(1794)

laudable

No Economic Justification
By Raymond Rodger*,* Professor of Bunking
Graduate School of Business Administration

New York University

banking professor

known

that

vation

For Attacking Savin gs Banks
;

for

vigorously testifies as to savings

has

profit

American businessmen

—

been

the

banks' overlooked importance; rebuts attacks made on this system
of banking; and outlines four different things savings banks do
for commercial banks in the State of New York. Professor Rodgers

mutual,

attacks;
commercial banks that S & L Assns. will fill the vacuum if

largely prevailed until World War
II, savings banking/'encountered

banks

are

not

for

the

current

increased

110

per

sayings

per

was

nothing
But

cent for demand deposits*

to organize

necessary

get the

non-profit, institution
savings function per¬
all.

but

tion from

commercial banks' time deposits

cent to 21

formed

warns

permitted to meat the need for savings services;

and submits data showing postwar
have

wave

this

praise

arid

commercial

World

War

Thursday, October 29, 1959

Both

Tbe inescapable fact is that

commercial banks and

our

mutual

complement each
other is so;* many ways that it
would take days to tell the whole
savings, banks

story.

mention

but

few of

"he'savings » to
.

to keep up with Russia; ^*
of losing ;th£^^Ci.)i-;C:^yWgs^i^s,T^ike^.the
would be so terrible that n^-gatheringr^mes-'i^o.ur^oil.. fields,

must grow

—the. consequences

situation

race

sacrifice
win

coOpera-'v

ended

Types of Banks Are-'-'

Complementary

X«8 UthisS
growth v^thout i .11

too

there

—

all chasing

dollar and
the heads of our

power

•

must bring together in one large stream ?
other choicer JniHion^ of; smalk,amQjinter-.which ^

great.-

Yet, it will be an empty victory if,
in winning 'we sacrifice the pur?--

\banking/). J;

II /

render ill service to their fellow-*
citizens as well as to; banking."

par-

spring of our economic progress. terest lie in the present attacks
On the contrary, mutual savings
by some commercial bankers on
banking was developed by those savings banking?, • : v
,
same
hardheaded, profit-seeking
To answer this objectively and
businessmen to render a service
unselfishly, another question must
that
commercial
banking could
first be a swered, na
y
not
profitably offer our people.
is the greatest economic problem
In
short, in those days people
were poor and savings were small

reasons

Well

the

particular institution, or

moti-,. ticular^type of institution.
mainWell, where does the public in¬

examines

Financial Chronicle

our

otherwise might be f.o o 1 is h i y:?
hoa.rdeavi»:r^a.ttresses ;.and-£Other,t.
dangerous repositories., And.what
do, theyAdoAwjth these amounts?,

that.
Disposable income rose bring down on
sharply and we became a nation 1 children the social holocaust of They deposit them in a commer-,
of middle-class people with large
runaway inflation with its great cial Jjank—in fact, as a practical
Bet us not beat about the bush- banking enable me to speak with
saving potential. This is" clearly
danger to our social institutions, matter, there is nothing else they
savings banking is in danger—the some authority on this—btut we,
indicated by the growth in savings
can
be honest about it, and we
While it is true that our infla- can do .with the cash funds which
gravest danger in) its 140 years of
held by commercial banks, savings tion rises from cost-push factors, they,/gather- from:: their millions
service to the people and institu- have a clear duty to do everything
banks, and savings and loan* as¬ such as the
wage-price spiral apd
d.e p o s i t o r s . Such.deposits,
possible to inform the public of
tions of this
the whole truth in a matter of sociations, from $52.6 billion at the runaway government spending at which are in the hundreds of milstate! It is un¬
end of 1945 to $141.6 billion at the
all leveis—local, state and Federal' liQns of dollars, constantly, turn
such vital importance to all. This
der attack; not
end of 1958—an accumulation of
—it is also true that if our people ,) over /and thus, furnish the com-;
is a
continuing, day-to-day re¬
by the people
nearly three times as much sav¬ would save more/and spend less,, mereial banks* with av steady? de-/
of the State of
sponsibility and not an "off again,
ings in 13 years as in the preced¬ the inflationary pressure would be • pendable ? fldvw of"; cash of large
on again" type of task.
New York; not
Moreover, during just that much less. In fact, maxi- proportions.?--.; —vv•:?• ■ .
In order to avoid any misunder¬ ing 300 years!
"Vn
by vote-seek¬
this 13-year period, far from; fall- :
mum- saving, resulting from
con-;.'.'; S0,;far from siphoning off destanding of the basis of some of
ing politicians;
behind
in
the
competitive sumers'
the things I am going to say, may ing
spending only for neces- posits) as^ has ybeen charged, sav~
not by muck¬
race,
all commercial
banks in- sities during these critical days, bigs banks actually siphon in deI qualify myself.
First, I am a
raking
jour¬
creased their time deposits some
would actually control the threat posits " to * the * commercial' banks!
professor of banking, which means
nalists; not by
that I have as much interest in $33 billion, while mutual savings, of inflation. This makes increased
:\(2) ^Savings-banks buy mortCo m m unist
banks in the 17 states in which
commercial banking as in savings
saving and decreased spending* in -Sages—again in the hnudreds of
propagandists;
they operate were increasing their the
public interest under today's'millions — from the commercial
banking. Second, I am proud of
but by i n d ideposits only $19 billion., Or, com¬
the fact that I am an alumnus of
inflationary pressures.
banks, and thus, contribute to their
viduals
from
paring the growth of demand de¬
one of the great commercial banks
Using this yardstick, let us, as?mocessary:-liquidity. This,also conwithin organposits and savings deposits of the' AT Smith used to say, look at ther;,tributes-to-the. profits, of^ thecoma L
of the world, the First National
Dr. R. Rodgers
ized banking
commercial
banks
alone "during
record. The first thing that meets! mereiabbank, as it is thereby able
City Bank of New York. Third, I
itself. These
the postwar period, /demand, de¬
the eye is that the mutual savings
to get the;,income: on the anteceattacks have been made with such have never worked for a savings
posits increased $22 'billion, „or banks are the
only financial in-.r dent construction loan, ,to get a
skill and pressed with such deter¬ bank in my life. Fourth, to com¬
21%, whereas savings deposits (as stitutions in this "state specially, Premium, or bonus, on .the mortr;.
mination within the national trade plete the record, may I add that
measured
by time deposits)' in¬ set
up by the legislature for the-.gages sold during times of easy
association of banking that the a year ago, along with professors
creased $33 billion, or 110%.
:
from Columbia, Hofstra, Fordham,
specific purpose of encouraging-.money_,.and„ generally, to get inAssociation has felt it necessary
These
figures amply 'demon-' thrift ana saving. Other institu-) come of: qne-half,.df?l%/per,an-^
to withdraw from that association. and a colleague from New York
strate three things:
tions, such as the savings and loan num on the outstanding *balance.
r>.'C'a
And one banker in our own state University,. I helped make a study
(1) The greatly increased flow associations, encourage saving, butv^d^mg;./the^e^tir^;.Mfet- of, the
has suggested that savings banks of "The Adequacy of Banking Fa¬

and

they have not fallen behind in the competitive race

for savings.

;

be converted to commercial
or

banks

cilities in Nassau County," which
financed by a grant from your

was

liquidated!

state association.

cash

these

attacks

In fact, it is fair

those who would

their primary

function wliich is financing home-

V; building; • and

fight for such deposits.
come from,
to i&y that many of the ideas I
(2) The commercial banks are
profit from the
shall express are the result of our
atomization
of
mutual
savings
getting their institutional share of
study of the monopolistic condi¬ that greatly increased flow of
banking does not make them any
tions prevailing in that county—
savings, and
the less dangerous.
It is unfor¬
conditions which apply to com¬
tunate that the public does not
(3) The
savings deposits'': (as
mercial hanking as well as savings
understand
the nature
of these
measured by time deposits) of the'
attacks. This puts a grave respon¬ hanking!
commercial banks have 1 grown in
the postwar period at a rate five
sibility on the press, on educators,
The State Created Savings
and on bankers alike, to see that
times as fast as demand deposits.
Banking
the truth prevails.
One
of
the
most
The Public Interest \
important
The truth is, as every banker
things to remember about savings
As far as I am
concerned,;.the
knows, savings banks and com¬ banks in
New York State is that
public interest is the, .only true
mercial banks are both absolutely
they were designed and created by measure of
essential to the welfare and con¬
any institution: Bank¬
the legislature to meet a
compel¬
tinued prosperity of the people of
ling need. It cannot be too strong¬ ing, in particular, is such an inte¬
New York State, and I mean all
ly emphasized that businessmen gral part of the economic life: of
the people — business, labor, and
not savings bankers created sav¬
everyone that it can truly be said
government, alike.
And they created that what is good for the,public
We cannot take the mystery out ings banking.
That

mortgage/ for; seryfcingit.? Such
bonuses and servicing;, fees, from
mutual savings.;.banks;,have conj
also encourage
tributed, and\ are a contributing
likewise, it is secondary to their.:, ev'en nowtheavily: to; the; income
primary function which is meet-.i.°f the. Nassau4, County, i.bankers
ing the credit needs of their mem- who have been most vocal in their

savings makes .it; worth-1 it is secondary

while for the commercial banks/to

the credit unions
savings, but here,

•

of banking—34 years of

university savings banking not
teaching, writing and speaking on of the ever-present

the result

and

highly

good for banking, regardless of

how it may affect the fortunes]of

bers.
-

•

—r—

■

criticism' of mutual savings bank-

ihg- Thus,-even if,:;vaild—which
it is not — such criticism would
tween saving and inflation? Their come with singular ill grace!
primary mission is to lend money " • Parenthetically, ! may add that
Where do the commercial banks

stand

this .crucial

battle

be-

so-called" "flight money"
charge was not made so long as
They thus cover every phase ^he "flight' of mutual savings
of today's economic life with their
bemk: funds to Nassau County was
lending, and they have done a in such
heavy volume that
magnificent job in expanding bonuses and servicing contracts
their lending.
On every hand _, could be exacted by these critics.
)the subway, radio, televisio n;. It was only after the legislature of
newspapers and direct mail—the ^he State of New York in its wiscommercial banks urge the con- dom saw fit in 1949 to rescue our
sumer to
borrow to spend. Some savers
from .- such - monopolistic
have even gone so far" as .tovar- ? exactions- by* permitting the'-purrange for people to draw checks
chase .-of out-of-states1mortgages
on them before making a deposit
that these economically silly and
—and that certainly ,isl00% serv-% patently self ish ch a r g e s were
ice-on the spending side!
" ^
made.V; *
»-• ]
Such enterprise is highly com(3)^ Sayings banks make great
—originally to merchants, later to
producers, and

now

consumers

also.

•

This

announcement

is neither

offer

7 he

offer

sell

nor a

solicitation of

offer

buy

any

of these Shares.

made only by the Prospectus,

very

life.
mass

200,000 Shares

The National Key
Company
Class A Common Stock
(Par Value $.50

per

Share)

contributions to the public underlife-blood of our economic standing of our^high-powered, poAnd consumer credit made -tentially, inflationary,
twentieth
distribution
possible,
and century banking system—and the
made a great contribution to importance of this understanding

mendable

thus

bank

credit' is

the

cannot he over-emphasized, as our
commercial, banking system,can
he either ; the .-greatest service
cial banking system, ^Even under ugency ever devised- by; man, or,
the lash of the intemperate at- alternatively, a force^^ for inflation
tacks of some commercial bankers,
depending on how we* utilize it.
no
savings banker has proposed Fortunately, the most outstanding
that commercial1 banking be difference
between present-day
liquidated!
!
banking and. banking before the
Imperatively
necessary.: as
is Great Depression of the early.^Os
commercial
banking to govern- ■1S ^he much better understanding
merit, production, distribution and °. banking by both bankers- and

the
standard
of
living- of < our
.^people. Everyone knows the vital
importance of our great commer-

Price $10 per

consumption,

savings, banking is
In fact, under
t o d a y's inflationary conditions,
encouragement
of
saving,
the
primary function of savings bank¬
ing, is more important than en¬
couragement of lending, the pri¬
no

Copies of the Prospectus may be obtained in any state only
from such of the several underwriters, including the under¬
signed, as may lawfully offer the securities in such state.

less

mary

necessary.

function of commercial

banking.

C. E.
October

23, 1959

Unterberg, Towbin Co,

But

comparison

can

the public.

Today,
schools
and

there' are
banking
throughout the country

special

banking

conferences

in every state in addition to the
Graduate School of Banking of the

American

Bankers

Association

and the Graduate School of Credit
and Financial

Management. Liter¬

invalidate the basic fact that both

ally

commercial

studying, not only in such schools

hanking and savings
indispensable to the

hanking are
people of the State of New York.
Neither is expendable from the
standpoint of the public interest,
and

those

who

say

otherwise

thousands

bankers

are

and in the classes of the American

Institute

Banking, but also on
our
great universi¬
ties.
For example, this year New
York University alone has .more
their

own

Volume

190

Number

5894

The; Commercial and Financial Chronicle

.-.
"44

(1795)
than

two

dents

thousand

from

Savings

the

graduate

field

stu-; be a commercial
banking, denies that.

lead

educational

lions

activities;

one4

use

a sav-"urns do not last forever.
And, if
ings bank account, either while in savings banks are ,not permitted

school

later. Habits formed and

knowledge gleaned from owning
savings

bank account lead

the

Opening of checking accounts and
the proper utilization of the othdr
bankmg

commercial
within

provided;

by
Any division

services

banks.

the

field

of
•

banking, such

...

P^e the

TVToixr

•

V<-ir>L-

Ctitn

CARLISLE

—.—_

the Internationalists,

boding for the future
Well
Taken

•-.-.rli

—t»r

being of
place1 in

the

and

peace

world,

have

ronfidpnce

cial

banking

record

The

commer-

unparalleled

financial

safety

«nvincro hnnkc helnc

our

nub-

nreserve

lie

confidence

times

closed, there
of

not

was

voluntarily
single fail-

savings bank in this state

"n fact
in

who is old enough to know
vvuu is uiu ciiuugii iu

iciLi,

first-hand of

saving! bank fail-

The

in New York State'

ure

be said

cannot

some

rnnfidpriPA

banks is

mutual

savings

nur

stress limitations
lmuicllJUHb
SUVba

placed
Piacea

new
new

on
on

bank

savings

savings
a li ght

deposits to prevent
of deposits from the commeicial

banks, and other institution..
There

other examples

are many

which could be cited of the inter-

commercial

dependence of

bank-

ing and savings banking, but these
cn crifipnt
sufficient

are

show
show

in
to

not
not

thepubhc interest
lies, but, .also, where the true
interest of .commercial'Lanking, as
where

only

institution;

profit-seeking

ties.

Why

the

Attacks

Savings

There

attacks

the

are

"changeTin"the

h™ngvX7iliebvs

partly based,
earlier,
on
the
pattern of saving.
are

partly based on
conditions of today which make it profitable to
divert savings from their tradi-

tional
such

ing

purposes,

government, to consumpchannels, such as expanding

consumer credit.
In fact, one of
the commercial bankers who has
been

capital

our

tion
,

for

home-building and finane-

has

critical

most

banks

recently,

savings

according

not

;

against

self-same

those

his

that

,so

loans,

credit, can

sumer

the

Carlisle

and

bas to P.ay the

feel
not
a

other

that

hnrtarint* it.

same

banking

rejoicing over our naving ciearca

111*,.

bankers

communities

are

large enough to support both

bank.

such

and

savings

There are, of course, many

communities

New

York

State, and if there can be only one

good

bank,

return

hope

Congressmen

our
Hrm't

junkets

cVim.r

QWn

which

able

whom

they

overturn

policies.

name

it certainly

ought

Nov.

Florence

-Clovo

Exchange,

to/Murray Simons
>

Lillian

Simons

Zaidenberg

and

will be¬

limited partners in the firm*

come

Dillon

will be changed'
& Co.

C0U"-

and

impatiently waiting

of the New York Stock

nnomminm

Neverthe¬

Department

Simons, Linburn & Co., 25 Broad
Street, New York City, members

give

Sutro Bros. & Co.

next week after Under-Secre-

tkem to be ™ddcnly cut off is tary of
department

net

completely

Effective Nov. 1 the firm

forage butter there is an
The conflict between Secretary
fvtul howl about what willhave Anderson's policy and those who
the
nations
do.
Thev.
fpreig+n natio?s do; +They ba/e are agaiDst it is expected to flare

come to exPect our butter and lor

almost

New Firm Name.!

tues is now over.

foreign

President

Murray Simons

ever ?et back- The
very

we w,

will

Anderson's

our.

.7«Is str"CK it mto
uuck 01 11s-neignoor.
»
An

address

Convention

Prof.

Rodgers

before

With First Southern
;

1 wo

• it- ig

State Dillon returns from

To Admit

trip to the Far East.

Volpe

insist

sad'situation

that

announcement

one

^lut the iaxPayei,s wil1 *'ret about,

eign aid program would be tied to

The second event of dire

conse-

dollar sales. The State Department

is the action of the Devel-

A. ML Kidder

"made that^^ in^he futtlre^Ahe^ for-

and the. International Cooperation
Administration have succeeded in
holding
up
this
announcement

quence

0pmenf Loan Fund.
to

mitments.:

pump

but'not

It is supposed

dollars into

the remote

Appoints

and

have

John

Paterson

with

connected

come

BEACH, Fla.—Robert
C.
Fuller
has
been
appointed
Manager of the Pompano Beach
office of A. M. Kidder &

2451

Co., Inc.,

Atlantic Boulevard.

Dukes

The

be¬

This

First
,

Southern Corporation,'
Street, N. W.
' ! '

announcement

is under

offer to buy

any

Fairlie

no circumstances to be construed as'an
bfjer to sell or as a solicitation of
of these securities. The offering is made only by the Prospectus,

NEW ISSUE

41'

Allyn Oo.

(Spcchi to the financial

$20,000,000

Morris

is
now
with A.
C.
Allyn and
Company, Incorporated, 122 South
La Salle street. He was
formerly
with

Francis

Pont

Florida Power 8C

Co.

First

Joins L. F.

October 28, 1959

Adds

chronicle)'

CHICAGO, 111.—James

Rothschild

Light Company

Mortgage Bonds, 5!/4% Series due November 1, 1989

Dated November 1, 1959

Hornblower &

Price

Due November

1, 1989

viNCENNES, Ind.
Lehman

—

Richard

The Prospectus may be obtained in any State in which this announce¬
ment is circulated from only such
of the undersigned or other dealers
or
brokers as may lawfully offer these securities in such State.

Lynch, Pierce, Fenner & Smith

Kidder, Peabody 8C Co.

Incorporated

Drexel 8i Co.

F. S.

Gregory & Sons

•

Moseley & Co.
i

has

become
associated
wRh M, W. Welsh & Co.,
Inc., 307
Busseron Street, members of the

Midwest Stock Exchange.

Paine, Webber, Jackson & Curtis
R. S. Dickson &

VVith State Bond & Mt^e.
.

™W

101.519% and Accrued Interest

Weeks.

Merrill

Minn.

^ErmO.

Mortgage
Company,
Minnesota Street.

North

Company

L. F. Rothschild & Co.
Alex. Brown & Sons

Shields & Company
F. S. Smithers 8C Co.

Incorporated

Stroud 8C

Company

Incorporated

Shelby Cullom Davis & Co.

POMPANO

(Spcciil to The Financial Chronicle)

are

whole historical

commercial bank

the

are

'The

finance,

State

ICA

°f

The

him

the

pr7/nr thp^ counterpart currencies serve
farmers for these httle purpose other than to

CHICAGO, 111.—Frank S. Whitsavings banks in&, «B\ has_ joined; the stalf ot
including con- L. F. Rothschild & Co., 231 South
be further ex- La Salle Street. He was formerly

commercial

their

less,

embattled with Sec¬

are

goods

very

his mortgages

record of the evolution of bai
Still

poorer nations
their feet and State De¬

ab01t the sa!Tie thl.n|> bartering it don t show up on any accounting
?fl.lor counterpart funds cost the that is made to the taxpayers,
taxpayers of the country money.
The dollar shortage which for-

outrageous.

President.

in the field

help the

?hePgTobe * ",1°US t0-,fVe themta,wa£?
Aeriruimre

commercial

the

out of ,of restoring the protective tariff,
about 7 Well, this is just too bad. If the
alone, dollars we give away can't be
it we spent in this country, what good

labor

retary of the Treasury Anderson.
The
policy is undermining our
foreign policy, foreign aid policy,
and, above all, is an oblique way

Bargeron

bank
Shearson, Hammill Adds
sin¬
(Spcci il to The Financial Chronicle)
cere in their belief that speciali¬
zation in banking is no longer
at^^HICAGO, 111.—Peter J. Gressens
visable. Although specialization is has
become
associated
with
growing in all other fields, they Shearson, Hammill
&
Co., 203
feel that it is not a good thing in South La Salle Street.
banking. They thus take a position
contrary to the basic ecoJoins M. W. Welsh Co.
nomic principle of the division of
(Special to the financial chronicle)
of

it imports.
Secretary Anderson is

of
Coopera¬

get

United

than

spent here.

largest outcry

International

The

exports

panded.
Many

requires that the
This

still

with

critics of savings

The

the

States

relies

laSo

tho

/credible reports, been attempting
to sell $5 million of

must

caused

$3.4

being criticized as negligent in not
Before he left, Mr. Dillon is un|hp 7?mTnnrpfai h2 warning these foreign nations that
derstood to have felt that he had On Nov. 1 Philip G. Volpe, memu
hankf rpS1te'su^ly is rumiinS short. CARE an agreement with Secretary An- rber of the New York Stock Ex¬
nfe of President RLSvPlt'Il^ttPr and the ;other relief agencies^ derson not to extend tbe-Buy change, will become a partner in
^
^
about MimsnVi-ni
Sutro Bros. & Co., 120 Broadway,
lemaxK^bout Mussolmi whon ha wbick eater to the needs of the American" principle to the whole
when he
rt-uv
tn
-ut-tr• i
vn
needy Peoples
nee^y p^pies are, it is claimed, foreign aid program. Anderson is New York City, members of the
Ander
Wo^
jj.
having to;go into the open market understood to have had the oppo- New York Stock Exchange.
hfni thA dn«ir
to fl11 their com~ site impression, and was about to
banks

money

uses

would

commer¬

also,

are,

tight

big
2

dl Tho.t
nave developed side by side Those

commercial

some

attacks

explained

the

v.,

ATLANTA, Ga.—James

These

They

banks and

banks, for commercial bartks and

bankers?

are controlling economic

reasons for small

New' York
Savings
Association, aboard the ss. Nieuw
insterdam, Oct. 2i, 1959.
-

interdepend¬
the explanation for

banking
ent, what is

order of the Develop¬

Banks

savings banking and

cial

imbalances.

partment

The

are those who either.'through ignorance or for selfish purposes,
mislead the public.
•
'
'

trade

new

» is unfortunate that the public nhniit the
commodities, so thincr it away, or
giving
,

deficit

These

expected

country

posed

does not yet understand this. It is
even more unfortunate that there

the

overall bal-

ance-of-payments

desire.

may

all.

are that there is

economic justification for the
current attacks on savings banks.

example,

United States had

tion Administration which is
sup¬

Conclusions ■;
My conclusions

and there has been a drain
American gold reserves. <
Last year, for

serves

at-

their place

be about $4 billion.
deficits are not caused

has

can

billion and this year the deficit is

dollars

!STPJUS in
wheat, corn

the

ment Loan Fund

sacrifice of the public interest 0 t h er comturning the small banks.against modifies, has been running
the large banks' and tbe commer- our ears and is costing us
Pal banks against the., savings $1 million a day for storage
banksIn an eIfort t0 «<* rid of

66tb

Banking
If

Protection

the

take

and

that

order

areas

among the prosperous nations,
Heretofore
we
have been

The

banking district line..;They have ; a n d butter,
euvery right to do that, but not at'.together with

great that in times ot

other type
Public

economic

severe

mu-t
mubt

of any

same

insthution.

financial

four

the commercial tanks in the

United States failed
ure

During

7u7ximatelT one-S

of'all

banking

all

earlv'30s when

the'20s and

15 000

economic stress

?"*•
them

they

niihlir

world

any

the^ alternative is .not - local mo- Department of
nopoly or,.a savings bank branch, ^Agricul ture
rather., .a savings bank'••■branch ran out 'of surin
savings and loan -association. Aplus i butter,
to use our banking systems and
*StHl other commercial bankers, ; You would
our .Wmoney
management ^ as the sV£h as the large jN.assgu County ¥ t h i 11k this
basic
tools
in
Our ". efforts
to? bankers
who have,, spearheaded< w o u l d be a
achieve
greater stability* in our the attack on savings, banking, matter of reeconomy '
*'
1
are defending the highly profit- vjoicing. The
tn

culture

national "policy, as set forth .bub
the Employment Act of 1946,v £)' a

(4) Savings banking contributes

the

peoples of those

pumping
the dollars into these
nations and permitting them in
turn to spend it in'

certainly not in the public interest—especially today, when it is

■

areas

tain

our

■

back, for this country to do every¬
thing possible to encourage the
outflow of dollars. But this situa¬
tion has changed. Most of
the in¬
dustrial countries have built
up
substantial dollar and
gold re¬

BARGERON

events, filled with fore- the

a™ loan associations;nn Califor"ia, where there are ,110 mutual
savings banks, with their-develop-

Secretary Anderson points out
that 10 years ago it was
necessary,
with the free world flat on
its

Ahead of the News

>•

*!° meel the need for savings serv- v<
|9es'
savings and loan associations will. Any commercial bank:
er who doubts this should comAccording to

mpnr

until
Dillon's return.
The fight
will then be carried to the
White
House.

FROM WASHINGTON

..;

n^ed for thrift facilities exists, it
W*B be met. Such economic vac-

;Mil-

people first learn
banking facilities through

—

Commercial bankers should
realize, however, that if; a real

banking has been in
in participation
in all

Such

bank

McDonnell 8C Co.

Putnam 8C Co,

Incorporated

=-l i

The Commercial and

(1796)

growth or even
sion, too much

"What Kind of Sixties?
'

■

*
„

' '

(

discerns

Banker

„

some

generally pleasing face of the present economy. Without finding
need to sound an alarm, he urges this become urgent business

wise
the

sickness.

But the problem of monetary
management is bound up with
other problems, both domestic and
international, that are ripe and

particularly stresses we select the
"right" and not the "wrong" medicine. He dismisses fears of a money
panic in supply or in cost; suggests the right way to get out of the
deficit rut in our international balance of payments; terms too many
Miv Alexander

dollar.

power

the

lems will

printing press in the Treasury's office.

know

but

answers,

the

and become crit¬

worsen

ical

submits the interest rate ceiling on U.

ing

unless we are
willing to apply them, the prob¬

budget deficits constitutes monetary nonsense; and
S. bonds is the same as plac¬

non-emergency

solution.

for

pressing

new

decade

pro¬

What kind of Sixties will we have?

not going to try to predict
what the Gross National Product

economic
situation.
The
economy
has maintained
vigor
through three months
of steel
strike.
Consumers are spending
and borrowing to spend—maybe

good

have

chart

Nor do I

1965 or-1969.

will be in

showing what
the population
will
years

much

too

Capital spending shows good
strength. Not all the overcapacity
-built in the last boom has been

from

now.

too freely and maybe
encouragement.

borrowing
with

Both

will be bigger.

omy

will grow

digested,
but
the incentive of
greater efficiency is working to
encourage replacement programs.

There

Our

country

and

its

econ¬

z e

|a n

Will
we
or

Alexander

firm

for

and

our

The answers to

great clouds.

those cTSuds, I can

one

force
of

master

the

our

enemies can pretty
well set the price we shall have
to pay to keep that mastery. Thus
arty assessment of the future must
be made in the shadow
of" the
great "if" of the cold war. About
this, we may be optimistic or

accord i n

events

cloud
not

£ Ho the

each day brings, but the
remains, and its removal is

matter

It is,

within

our

power.

however, within our power
always as steadfast and

devoted to our ideals and purposes
as

the

are

The

nomic

Communists

even

—

so.

other

cloud

future

over

our

eco¬

can

deal

one

with, if we will. It is the cloud
of uncertainty as to how intelli¬
gently we as a nation will manage
our
economic affairs.
If we do
well

situation
of

this,
can

and

the

world

be held in some kind

political balance, we can make

the next decade the Sound Sixties

celing out much of the tortured
that has been made since
World War II toward establishing
it
favorable
climate
for
world

progress

prepare

enter

disturbing point.

Our gold stock
ample.
The
disturbing point is that we have
is

still

than

tion,

affluent,

however

endure

prosperity

balance

pay m e n

the standard of

its

peo¬

be threatened

can

cure

must choose

medicines; the wrong

do^.as much

disease

itself.

the

ones

harm

as the
export
exports
still

need

for

sell

carry

capital

they will

move

the

around
for

some

an area

present level—maybe

little time..-,.A;'sustained

strong upward thrust in unlikely.
The

demand
time

some

all

for

money has for
been strong from

now

types of borrowers.

This has

outlay

helping underdeveloped

for

areas.

attained a degree of
which would enable

have

They

After

all,

the

are

not

They

are

national

much

allies

this.

narrow

ones.

objectives

the

they

Another

are

our

own.

our

one

element

important

the
amount
of
private capital
being invested abroad each year.
Private investment in foreign
countries is a natural and desir¬
function

able

not to

such

economy

aggressive

ours,

and I hope

the day when artificial

see

restrictions

are

necessary.

situation

our

right

one

now,

which

should go very slowly in adopting
measures
which give special en-:

couragement

such

export

capital.
Until we increase
our
exports of goo Js and secure some
relief from the heavy burdens of
foreign aid, we had better proceed

only modestly
through

tion

from

other

The

pro m o

laws,

tax

t i n g,

treaties

American capital invested abroad
exceeded by about $22 billion the
tal

eign

competition
used
principally on
price;

rely
it
still
it features

long-term foreign capi¬
in this country.
We
the climate for in¬

to make

vestment

here

favorable

that

foreign capital will stay and more
will
come.
This means keeping

and yields in

don't do this, foreign, capital

will

for

world markets is beyond anything
we
have faced in the past.
For¬

lodged

need

competi¬

countries

total

of $78

the

oneryear

new' -issues

unless

longer maturity can be .placed,
debt is too short

The total

and

floating debt is too high. If
finance budget
deficits and refund its- maturities
the

the Treasury must

through the banking system, mqn-

will be created and a. strongly
force set-loose. And

inflationary

Treasury is trapped al¬
completely in this-one sec¬

the

yet

most

interest

of the market by the

which prevents it from

rate ceiling

bonds.

long

selling,

Th&

ceiling should come off.

We are

inviting inflation by keeping it on.
all

government has to do
short term,

the

When

its financing at

truly borrowing funds, it is

it isn't

coming dangerously close to

creat¬

The Secretary of the
Treasury doesn't want- a printing
press in his office, but the prac¬
them.

ing

tical effect of the rate ceiling may
be to

put .one there.

We need

•

balanced and length¬

ened schedule of Treasury

ties

and,

inflation

against

fense

maturi¬

tighten our de¬

are

might add, ever get relief from
the harassing,- nerve-j a-n g 1 i ng,

market-jittering, always upcoming

otherwise, the movement of pri¬ problem of Treasury financing. • ,
Still
another
important force
vate capital abroad. It should not
be necessary, I repeat, to place affecting the value of our curren¬
restrictions on such movement.
cy is the relationship of wages to
At the end
of last year,
the productivity. Wage rates in the
amount of private, long-term steel industry are not settled yet.

export sales is
of the toughest jobs we. will

face in' the Sixties.

into

down

tion

balance of payments deficit is

our

leave

and

balance

our

payments situation will
It

was

worsen.

heartening to note, at the
of finance minis¬

recent meetings

The

involved

issue

still

the

last July. Is there
to
be
a
non-inflationary settle¬
ment or another turn of the wageit

same

was

I do not-know what
but I do know
should be closely re¬
productivity. Otherwise

price spiral?

the answer will be,

that

wages

lated

rise, we? will lose our
position'in world markets and the
dollar will lose standing, both at

prices will

home and broad;.

And, finally, let me emphasize
that
in presenting; some of
the

problems that confront us

the -L96Gs, my
over
the
world
in
price, but now
Washington, purpose is not to sound an alarm
quality too.
that confidence in the dollar re¬ but to stress ray conviction that
credit is not exhausted.
In
Savings
The dollar hasn't these problems can be solved and
many
markets we're
still mains strong.
continue to be available for long
contending with discriminatory weakened, but a number of other the dangers they embrace can be
borrowers. The commercial bank¬ restrictions
of
the
world
have averted,
but
only
if they
are
applied against our currencies
ing system supplied loan funds in goods in the days when the world greatly strengthened. The dollar's tackled with the will and deter¬
brought rising rates, obviously so.
But
the
supply of money and

the first nine months of this year
in an amount greater than in any

like
and

period during this decade,
yet it still holds about $60

billion of U. S. Government
rities.

The

loaned
I

but

foresee

secu¬

system

is
heavily
"loaned up." No,

not

money

panic

either

in the supply or in the cost.
Just

too

little

money

and

too

stresses

short

was

there

moved,

being
us

and
re¬

in¬

margin

is under

circumstances

superiority

reduced.

for

ment

media
world's

the

urgent business for all
of us in the decade we are about
to enter.
The over-all battle for
be

and against erosion
purchasing power of the
dollar is still in its early stages,
of

goods.

restrictions
The

original

against
reasons

largely dis¬

mentioned

that

the

But

wrong

abroad,
is

not

currency,

remain

must

strong

Its strength, like its value,
fixed but is measured by

monetary authorities.
tion

briefly

few

I will men¬
that have a

significant bearing on the strength
of

our

own

Budget

believe

but

Value 10('

per

the

per

prospectus may

be obtained from

the

best years we

have

enjoyed.
'From
the

Oct.

talk by Mr. Alexander
State Savings Bank

York

New

ciation

abo?rd

the

before
Asso¬

Nieuv Amsterdam,

17, 1959.

There

are

(Special to The Financial Chronicle)

bad, serious¬

are

times,

in fight¬

JOLLA,
is

Murray

Stone

Calif.
now

—
George A.
with
Hayden,

Co., 1101 Wall' Street.
formerly
with Merrill

normal

Incorporated.

the

balanced

rule of

individual,

only

mination

the

any

that

rule

with

the

return

nation,

must

budget, and

from

ture

the

possible moment.

Federal

Lynch,

Fenner

Smith

Debt Management

PORTERVILLE, Calif.—Allen G.
Basye has become connected with
Boyd Eckard. & Co.,, 404 East
Olive Street.
He was formerly
was

Paul

The govern¬

Eckard

fSoecial to The Financial Chronicle)

The management of our govern¬
ment debt also complicates the job

monetary policy.

Pierce,

Now With Boyd

deter¬
at

was

the

depar¬

should

firm

SCHWEICKART & CO.
Broadway, New York G, N. Y.

well
far

eventually

recessions,
when
budget deficits are justified; but

first

they

are

wars

made

Copies of the

kind

Sixties—whatever

With Hay den, Stone

bad.
Too many deficits, too
often, constitute monetary non¬

for

Offering price $2.00

won—

called—may

the

can

of that decade, very likely
early years. If we win it,

years

ing

Par

indeed will be won or losh—in the

Deficits

sense.

the

currency.

Chronic

Budget deficits

Manufacturing Corporation

prices, and is affected bv powerful
forces beyond the control of the

Shell Electronics

170,000 Shares of Common Stock

This

mination to overcome them.

should

stable growth

he construed

Corporation)

invest¬
and

funds,

enter

coming decade, to which we are
turning our attention today, this
competition is likely to intensify.
Another reason why we must keep
the dollar strong in every market.

October 28, 1959

New York

now

prepare

compete actively for them. In the

as
an
offer
of an offer to buy any of these securities.
offering is made only by the Prospectus.

been

has

currencies

Other

acceptable

are

bankers from all

urging

aggressive

appeared.
I

central

ters and

countries to drop their dis¬

for such barriers have
ex¬

Here

are,

export sales. Our nation

criminatory
our

dollars.

bars

and this will help

our

should
other

these

crease

hamper

can

New Issue

larger

investment market attractive.

chance

Building

good

solicitation

The

the

come

our

months

billion close¬
ly overhangs this in-Hfae one-tofive-year maturity span. As the
months pass, this overhang will
run

currency sound

there

about
disturbing,

large,

very

is. its

Another $58

bracket

our

believe

con¬

roof.

billion.

pay¬

our

amount of

that pensive

announcement

allies

our

home.

This

program

ments balance. The time has

however,

long

living of its

aid

foreign

think

without
weakening its currency and its
economy and ultimately lowering

right

expressed that

may

Our

tributes to the deficit in

na¬

substantial deficit in

blem¬

some

commerce.

our

can

size

its

goods.
Our
by high interest rates, or by a
show a margin over our imports,
shortage of credit. There is even
but it is a slim one.
Not nearly
talk here and there of a coming
"money
panic."
Panic
talk
is enough to support our overseas
without foundation. Interest rates military expenditures, foreign aid
and private investment abroad.
are not
going to go through the

and the best this century has seen.
i

running in its balance
of payments with the rest .of the
world.
This has been going on,
with only one interruption, for 10
years,
during which our deficit
has totaled more than $17 billion.
We have lost some gold as a re¬
sult, but that in itself is not the

in this age our

pessimistic,

are

Fears have been
our

but

fate,

own

there

Sees No Money Panic

decree the
We are still

can

been

For

only my hopes, not really
any valid opinion. Who can guess,
even now, the riddle of the Krem¬
lin?
I will not concede that this
pattern of our lives.

red

has

express

menacing

the

ple. We are no exception. For a
long strike leaves scars.
while, and in moderation, a strong
Deeper down lurk other disfigure¬ nation can
tolerate such deficits,
ments.
They are the monetary, but we have
seen, at many times
fiscal, and commercial problems and in
many places, what happens
which we shall have to solve if
when it tolerates them too long.
the beauty, of the face is to be
The lesson is plainly written.
preserved and enhanced.

these questions

obscured by two

But

ishes.

people?

present face of the econ¬
then, is a generally pleasing

one.

Will

flabby?

are

doing this

The

simply have statistical growth,
will we have more and better

things

omy,

be?

C..

rtenry

that

will

'growth

even seem

the stock market.

the list, I would place
figure which our nation

determination gotten into a rut of deficit in
international payments.
No
in check.
Some

have been intent upon

sound

some

High

debt

ment

$288 billion. Even more

composition.
restrictions to help balance
exchange payments would be Included in the total .is_$183 billion
remedy. It would merely of marketable obligations. Their
bring retaliation in kind, shrink¬ average life to maturity is only
ing the circles of trade and can¬ 4V2 years.
Coming due in the

objectives of foreign aid

Solution

Trade

keep prices
unidentifiable forces

are:

How

least

been

signs of

like to

focus

have

welcome

The
questions
I

activity.
would

Balanced

the
im¬

our own

wrong

them

decade, we start with a generally

Thursday, October 29, 1959

than

prosperity

gresses.

than

worse

Putting

our

purchasing

stable growth and a stable

for all of us so as to arouse

can

port
a

ably snug to the growth needs of
the
economy
and
the
cost
of
money should
be encouraging to
sound growth.

the other¬

blemishes and disfigurements on

remedy

cheap

money will find its outlet in in¬
flation,
in
speculation
and
in
spiraling prices. The money sup¬
ply, to be right, should be reason¬

Company of New York

, ,

Alexander,* Chairman, Morgan Guaranty Trust

Henry

lly

reces¬

bring on
and too

Financial Chronicle

with Hall & Fall and

prior-thereto

PorterviPe representative for
C.

Rudolph & Company.*

Volume

Number 5894.

190

The Commercial and Financial Chronicle

—(1797)

ton.^ Because they, rnade the scrap
themselves and were not selling-,
to an outside party, they figured
they were losing no money on the
„

That Has Found Itself

deal.

producer visualizes record-breaking

year

1960 of

in the investment world.

of each

product, it

scrap for

advances

counter

increasing

domestic

and

foreign

competition

ticular

„

jL1

of the

foreign sales.

low

•

business

it had

what

grown

call its
scrabble" days.
might

you

"scrape- and
,Thro ughout

try's strength., Then came the Bepression, and the bottom dropped

vinced

that

•Weaknesses

capital and
andskilled
n

the

same

this

d ''

-scrabble ..for

business

and

were

•

?C.ued

warehouse,

its
business. Up

the steel

and

by the time I went to work

for U. S. Steel in

1913, the character of the industry had changed,
The
trend toward mergers
that
began in the '90s had brought
the chaos.

order out of

some

improved

tegration

Consolidation made

In-

sification

improve business practices.

Looking back, we

can see that
beginning
of
the

the

was

"prince

and

pauper" era, but in
those days it looked pretty good,
/With merger piling on merger;
with
princely
profits following
hard on the heels of princely stock
issues,
were

looked

over

The

if hard

times

for the industry.

new

corporations

ex-

tremely loose structures by modern
standards.
They were made
up of coal companies, ore companies, limestone companies, primary metal works, and numerous
product
companies
turning out

illustration the fact

rolled

mills.

tons

were

listing

size change, quite pat-

on a

ently the cost
$1. But if only

ton would

per

ton

one

j0b

size and grade,
billet would be

product of

the

from

stock,

this

the

order,

efficiency,

and showed
that
sound
business
practices
were
possible
in
the
steel
industry,
Through the first two decades of
the

new

the steelmakers

century

up
in the scrap
having been carried in stock for
or years. Such things were
constantly happening, and they
played hob with our costs.
*

months

dition
one

con-

one

extras

these

for

services.

quently, the small

war

gradually
houses

reduced,
able

were

Conse-

rollings
and
to

were
ware-

fill

their

was

to improve scheduling and, conse-

quently, to increase the effective
capacity of the bar mills of the
made

program

The

that

even

been

fast

road

with

ruptcy, so an all-out effort was
made-to determine real costs.

business

its scrap at

the

indus-

I'll

give

you

found

quired
back

that

had

into

the
a

open

...

ket.

the

whole

vista

new

control—when

automatic,

I ythink

these

things I get a tremendous vision
0f this industry in : the 'Sixties

believe£att" point"Mhat^way.

£1

M;;

^earn ;show^

it was only a
small share of our total sales, but
now
we
are
faced with serious
Fortunately,

inroads

domestic
a

new

foreign

market

steel

our

well. This is

experience for us.

of the steel industry's
early days. To do that, all we
have to do is focus attention on
the record. Since World War II
the steel industry has carried out
pauper era

the

belief, however, that
with advanced mechanization; the
increasing capacity of our blast
furnaces and open hearths;
the
It

This is not

greatest

expansion

program

in its history. We have solved our
j/aw

materials problem for the
future. We have

foreseeable

Continued

on page

offering of these debentures for sale. or. un offer to buy, or a solicitation of mi
any

offer to buy

of'such debentures. The' offering is made only by the P.osp r.tus.

$25,000,000
I'l.ilr, "Cl\

Northern Natural Gas Company
5Vs% Sinking Fund Debentures
Due November

Dated November 1, 1959

materials

steel

has
also
develop and improve its management resources,
Republic, for example, we have
The

steps

1,1979

Price 100% and accrued interest

Copies of the Prospectus may be obtained from any of the sacral under■writers- only in states in which such underwriters are qualified to act as
dealers in securities and in which the Prospectus may legally be distributed.

industry

Blyth & Co., Inc.

program, a

course,

flat figure of $5 per

Incorporated

Lehman Brothers

Kidder, Peabody & Co.

Smith, Barney & Co.

Fcnner & Smith

Merrill Lynch, Pierce,

Incorporated

Corporation

White, Weld & Co*

A. C. Allyn and Company

A. G. Becker & Co.

Stone & Webster Securities
Dean Witter & Co.

Incorporated

Hemphill, Noyes & Co.
W. C. Langley

W. E. Button & Co.

Hornblowcr & Weeks

& Co.

Lee Iligginson Corporation
F. S. Moseley & Co.

Carl M. Loeb, Rhoades & Co.

basic

Salomon Bros. & Hutzler

Paine, Webber, Jackson & Curtis
G. H. Walker & Co.

Clark, Dodge & Co.

designed
to
improve
management
function at every
level. We send selected men to

charging
hearth all of

Harriman Ripley & Co.

Alex. Brown & Sons

Baker, Weeks & Co.

assistant

Hallgarten & Co.

program

The First Boston Corporation

Goldman, Snchs & Co.

Glore, Forgan & Co.

manager's training program, and
a
broad management cooperation

Securities & Co.

Eastman Dillon, Union

presuperv'isory

economics

examples,
plant we ac-

policy

melting;

possibility : of ; using
atomic energy in steelmaking; the
ture;

open

taken

few

one

has been in our raw

pecially proud of our work, along
with Armco, in developing the
low-grade taconites into a useable, merchantable material,

bank-

big, trouble was brewing,
Little by little, companies began
backsliding into the short-sighted
business practices of the pre-1900s
—the fast buck, the profit-todayand-forget-tomorrow
kind
of

atmosphere

to control grain struc-

ways

the

speaking, for the entire industry,
Republic has played a part in
all of these activities. I am es-

expan-

went

twelve years ago.
Coal and limestone are in the
same happy category, not only for
our own company, but, generally

through the exhaustion of
pit hematites of the
Mesabi Range. Since this report
was
made, we have discovered,
explored, developed and brought
into production ore bodies containing untold
millions of tons
of iron ore which we either did
not know existed, or did not know
how to mine and treat — just
the

companies must have had similar
experiences.
Another
result
of

War

new

into

proper

country.
World

solid base for
scales. It also

picture. In my opinion, the steel
industry has done a magnificent
job of developing new sources of
iron ore. In 1947 I prepared a
paper
outlining
the dangerous
condition our country had gotten

clear, companies
began charging proper

sion

sapped

wage

became

have

'avoid ruinous inflation.

one

An important change since

something fun- "guns and butter" loaded the indamentally wrong with the steel dustry down with heavy obligaindustry,
however.
For
if
its tions.
The
emergency
facilities
princely face showed during these qualified for the fast write-off
two decades, the pauper face was provisions of the five-year amorwaiting its turn on the stage. Fol- tization plan, but rapid amortilowing the postwar boom that sent zation was of value to a company
prices to new high levels, busi- only if it was making profits.
ness had a sharp reversal in 1921.
Therefore, if Republic took an
Operations fell to 35% of capacity, order at an unrealistic price, wc
and the steel industry was groggy had to figure not only the immefor two years. Then business sud- diate loss, but also the fact that
denly improved, and
1923
saw
we were destroying our ability to
new records for both pig iron and
pay off our obligation.
This could

that

time,

Improved Raw Material Situation

still

head-

pared to jobs in another mill—
jobs having the same title but
different duties,

grew.

But

made

probably
pile after

wind

-controlled

hundred

would

and

cost conscious.

steel.

three

scribing jobs in one mill as com-

was

about

—and the country—prospered and

There

would

eliminating the small order

increase

and

billet

demonstrated

marked

de-

rolled

cost picture, and I am sure other

the

This meant that most of the steel

size

tions of separate companies than
tightly knit production machines,
But even these early corporations

They
paper

first

eliminated

result, we in Republic soon could
observe an improvement in our

grades
hv

classification

measuring

but they were
actually closer to being aggrega-

structurals.

gether

sheets,

onlv

the

function
of
distributing
promptly and in small lots the
products of larger rollings.
As a

items

was

sev-

bars and
were tied to-

such

for
I

of our most troublesome labor problems.
This was
the task of identifying and de-

times

new methods of extractmetaj from ore- vacuum and

union demands have become so/ and 'Seventies. It is hard to conheavy that steel companies haye^ceive^ •* of
our /' present
' rate
of
been forced to work togetherto
'changeaccelerating, but the signs

too, and when the task was
finally • completed
shortly after
the war it gave the industry, for

jn many cases where a customwanted only a
few hundred

p0Unds

inflation

important change
is
that steel companies have been
forced into labor negotiations on
virtually an industry-wide scale,
We have largely one contract, pne
union, and one labor boss—Dave
McDonald. Under his leadership

way,

the cost would be $60 per ton.

into

rush

Another

•

rolling;

numbered steels.

rolled,

was

0ften carried billets and slabs in
stock to make them, we are now

us an average
of $60 to change sizes on one of
bar

nhnut

tremendous improvement. Where we once made
thousands of analyses to fit individual ideas and demands, and

1937,

As the wastefulness of this

were

man^s

that it was costing

cor-

standardized clas-

system

hmiiuht

delivered

eraj

corporate structures," and

new

was

talk

our

mistakes have been

vei0pment of

tremendously
costly operation for the mills.

efficiency.

it possible

strengthen the capital position of
the

This

Iiasfjieen hard to live I used
•

steei business, also. The de-

order any number of sizes and

back.

that

with

and

.'wr™

his large-

Rebating, spying, inside deals of
all kinds were common practice,
and they gave the industry a bad

•

Foreign Production and Wa&e-

companies
the impor-

\w.e. a" imPortant cus-

approaches

when
up

could include

a ®lze

charge,

extra

further

today's rapidly changing world.. tha„ that. When I. think
of the
vary, from .company .new developments that are eomto company, but throughout the. ing
along in the wonderful world
industry management training— of pure metals, and the observable
and
management performance— trends in the steel industry —
is showing marked improvement.; powder
metallurgy and- powder

grades of steel, literally down to
what a man could carry on his

do^n/
But

average

ea ty

get-the-orderat-any-price kind of competition,

name

successfully

can

...

earliest

the

Wnrte

they
U

pproach<to

the

f°

don t-give-a-damn,

customer

want

Programs

._.

function
M.

Cuanes

financed,

and
^

tance

and poor-

1 y

reality was
began to wake

poorly

.were

the

These

way

Many
panics

;co m

One

business

low carbon grades

rected in our company, and our 'that' -we have slowed thisrt^ferw*V->M.'. it- M
charges today are based on ac- but we are determined to keepf
An Investment*£ye-Opener: ■curate cost information. I suspect
fighting until wage-push inflation ; : '^
;xt
/M;
-7.
7
that other companies have found is 'no
longer a
threat. to
From the standpoint of effiit necessary to work out similar economy.
M v ^ * 'ciency*'alone,think the steel m^ Wj
7
dustry in the decades ahead will
problems, and I think there .is no
it 111 which is now ^
he an eyeopener in the- investment
doubt
that
cost
determination
problem
becomi
throughout
the
steel
industry, troublesome. We diave to
i^ world;, Our earnings base should
while not uniform, is now on a
how to cope with the low-cost , . v;,.,. consistent; improvement,
;
sound basis : * ■*"
steel production of the rest of the
But first we have to blast for^
World
War n
brought about world. We have already lost a everlthe picture of the scrape and
jmpr0vements in other areas of good portion of our export mar- scrabble era, and the prince and

"boom

profit—any
profit to keep
alive.

them.

overcome

the

was

the

•.a

/the

and

about it, and I think
beginning of the end
and bust" days of
the industry;'
r
r %
.y—

Some

unions,
fact

par¬

record of the additional cost.

/Other companies apparently felt

for

our

century it had

-ore

sulphur

and conr 0ut

had to find

been

scrape ;

output of the plant.

labor

conse¬

advent of new processes and new
methods; the increasing emphasis
oh research; the.steadily improving quality of our steels,1, and, we
hope,
the • cooperation
of
our

structure
has
the
depth,
the handle this problem.
breadth and the flexibility needed.

with

out; In one way, however, the basis. Additional annealing, slow
Depression, had a good effect on cooling and other special hanthe steel industry. In Republic, I
dling were also being offered with-

;khow, it • shook. us

19th

the

;

half

last

the

already out-

particular heats and

customers

that had to have additional furoace time were being charged out

By the timer went to work

run

selling price
good way

was a

lems, and developed a two-year
training program for accountants,
As a result of these efforts,- we
now
feel
that
our
management

quent penalty against the balance

affecting

own

Other plants were using selected

clfenge accelerating and the earnings base showing consistent
improvement; and counts on labor cooperation and technological

•m

were

to lose money.

real¬

scrap was sell¬

used to determine the

He furnishes pragmatlv evidence

earning ability during rough phase of the business cycle
after tracing substantial gains made in efficiency; sees
preset rate

the'

didn't

scrap, they were coming up with
fake costs. Since these costs were

of steers

steel

they

ing for $40 per ton, and they
charging only $5 for their

between

12(M36-milHon ingot tons and declares the decades ahead will be
eye-opener

what

ize was that when

ByC. M. While.* Chairman of the Board, Republic Steel Corp.
Steel

But

sales .training
program jin Mine
with ^ growing- marketing
prob^

m. I. T., Case, Harvard and various other universities for special
training, and when we find young
men
of promise we help them
obtain advanced degrees. In addition, we have expanded our

Schwabacher&Co.

Spencer Trask & Co*
October 28, 1951.

Dick & Merle-Smith

Dominick & Dominick

Hayden, Stone & Co.
StcrnBrothers&Co.

Riter & Co.

SwissAmericanCorporation

Tucker, Anthony & R. L. Day

Weeden & Co.
Incorporated

.The Commercial and Financial Chronicle

(1798)

White

and

third

Savings and Loan Business
And Pending Legislation
Heisler,* Managing Director, National League

By Kenneth G.

Insured Savings

home

Other

rising interest rates this year

rates.

efforts

Capitol Hill.

Mr. Heisler reviews Federal

and

legislative devel¬

of the increasing competition
S & L Associations and measures to enlarge controls,
offers observations regarding the interest rate controversy.

opments affecting banking, comments
facing

con¬

inflation

and

eompanied

must

here

situation

does

In its sim¬

inflation.

candied

plest terms the Housing Bill pro¬
vided the best vehicle possible for

ies to make it

over

one

the

recorded

decline
terest

followed

1921

similar

rates

duration. /In¬

about 1941 and

in Washington

must first take into consideration
the
so

political climate which exerts
much
influence
On
develop¬

ments in the broad field of thrift

Because of
next year's national elections, the
political atmosphere is particu¬
and home ownership.

supercharged as has been
illustrated in the handling of this

larly

Every major

year's Housing Bill.

item would authorize Federal

sociations

as¬

to make loans not

ceeding at

any

one

ex¬

time 5%

long-term
the

securities.

There

was

feeling that the Federal Re¬
Board

serve

had

gone

withdrawable accounts to finance

too far in

has existed within the government

during the last five years under
which the Republican Party con¬
trols

the

White

Democratic

House

Party

the

and

the

Congress.

announcement
an

offer

is neither

Control

assets

which

could

insured associations
in participation loans beyond the
regular lending area.
by

These

items

were

left

Statutory Interest Rate

the

made this time.
This third

together after
reached

Housing Bill

offer

to sell

the

Senate

and

What

solution

nor a

the

proposed

who do not favor
rate.

One

solicitation of
.

free in¬

to keep

ceilings wherever they
posed and attempt to put

down

are

im¬

pressure

the Federal Reserve Board

loosen credit.
*

October 27, 1959

200,000 Shares

Airtronics International

without

was

handling these bills those

NEW ISSUE

bonds

put recognition for tax purposes of
agreement was gain or loss.

between

House leaders

-S.

any

Corporation

of Florida

It is doubtful if the policy of
buying government securities on a
large scale would be resuirfed by
either administration that Happens
to be in power. The Federal Gov¬
ernment, for a number of years,
followed a policy of purchasing

serve

Board

tended

indirect and

are

to affect

to prevent

business.

aroused

This direct and

Common Stock
(Par Value 10£ per Share).

fi^ed prices in order

increase in the in¬
This policy, however,
being blamed for a large

now

used

part of the postwar price inflation
and was abandoned by the Demo¬
a

Treasury-Federal

cord.

has

followed by

per

Copies of the Offering Circular may be obtained from the
undersigned or from your own dealer.

Frank B. Bateman, Ltd.
243 South County Road, Palm Beach, Florida

stimulate

of FHA and

Savings and loan operations in
the magnitude I have described
will have a bearing on Coiigresi
sional
consideration
of
legisla¬
tion being pushed by Ahe Ameri¬
can Bankers Association to revise
Federal
Let

this

declined

control

Federal

banks

Home

Loan Bank credit.
As

Reserve

associations,
savings

rather

institutions

half of this year as

level

substantial gains. Out of the $7.1
billion received by all institutions

higher

for

ings

indefinite

period of time.

and

deal of criticism has
been levelled against rising mort¬

billion—or

value

has

house

doubled

since

cents

suggestion always be¬
the

use

selective

every

On the other hand,
banks

which

gains

commercial

recorded

striking

last year
their per¬
formance in
1959.
They gained
$4.1 billion in new savings in the

savings

early

unable to repeat

were

the in¬
terest cost per month to the bor¬ first
half of 1958 but in the same
rower
is
proportionately lower months of this year, they received
than it was 13 years ago. Lower
only $1.5 billion.
l
downpayments and longer mort¬
Savings associations have don?
gage maturities including the cost
an excellent job.
But in doing so
of interest when compared with
they have perhaps given com¬
monthly rental charges are quite
petitors impetus to intensify their
reasonable.
tax campaign on Capitol Hill. I
The kind of credit tightening we
should like to cover one point on
have been experiencing this year
the very important subject of our
ordinarily would be expected to
tax status.
result in a substantial lowering in
1946,

housing and home finance volume
—if not now, certainly in the im¬

not

But this has not—

mediate future.

ahead—but not

the months
nor

sharply

senators

and

congress¬

feel that many taxpayers are

reporting dividends

terest

probably will not be—4he case.
It is predicted that home con¬
struction will decline somewhat

fast

few

men

and

credited to

and

Meetings have been held with the
Treasury on this subject involv¬
ing not only the savings and loan

Continued

normally

This announcement is neither

offer to buy

offer

sell

nor a

page

solicitation

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

any

made

New Issue

160,000 SHARES

TANG

INDUSTRIES, INC.

COMMON STOCK
(Far Yalue $.10
'

per

•

Price $3 per
Copies

of the

Prospectus

undersigned only in States

qualified

to act as a

Prospectus

may

share)

obtained

from

the

which the undersigned is

dealer in securities and in which the
may

in¬

their acocunts^.

legally be distributed

DAVID BARNES & COMPANY

lowered to control the
use.

$3.4

netted
out

savings dollar.

gage

the

sav¬

made

months of this year'

associations

savings

great

t(Pis decline,

associations

loan

the first six
Effect of Rising Rates on Housing

private

media

sharply. A total
was collected by

billion

$7.1

similar

last year.
In the face of

government obligations. The re¬
serve requirement, together with
.those of commercial banks, would

Another

other

probability is that the rate struc¬
ture—subject to minor fluctua¬
tions—will'remain at the present

been adopted and
the Republican Ad¬

loanable funds for

six

during the first
compared with
$10.4 billion in the same months

result, interest rates, have
on
the
increase
and
the

Another proposal

fore

first

ac¬

would create
a secondary security reserve. This
plan would require life insurance,
companies,
savings
banks
and
savings and loan associations to
keep a certain percentage of their
assets in medium and long-term

situation

net savings

year,

by savings

and

these

been

our

commercial banks, mutual

Reserve- 'Board

quate

this

discount rates and should be ade¬

the

During" the

way:.

months

regulator

economy

eral

governing

illustrate

of the over-all
when used by the Fed¬
in fixing

prime

law

received

ministration.

be raised

tax

business.

case

It is used

loans.

Association .Gains if •" />•/

if; :

precedent for

housing and borrowing in the

A. D. A. Reaction to S. & L.

cratic Administration in 1951 with

$1.50

tightest it has been in a gen¬
eration, the savings and loan busi¬
ness has performed magnificently.

direct control over industry rather
than relying on a control by in¬
terest rate.
Interest rate is itself
control.

with money

And

the

^considerable controversy

because it affords

conditions.

ket

in¬

arid
specific

control by the Federal Home Loan
Bank
Boardover c r edit has

terest rate.
is

all industry

dollars of government

securities at

1958.

they are equipped to adapt their
operations readily to money mai>

billions

written in

was

markets this year largely because

on
stock
exchanges.
All
other controls of the Federal Re¬

than

and

buy any of these securities. The offer, is made
only by the Offering Circular.

Price

than

Board

invested

amount

„

rowing from Federal Home Loan

interest rates. But it ^is in¬
teresting that rising rates this year
have not particularly impeded the
housing boom. Moreover, although

acquisition

terest

This

Federal Home Loan Selective

its tight money program and to
development demonstrate their
feeling about
of land for ultimate residential
the matter, they determined not
usage.
Another would, in effect, to
grant broader authority to the
increase from 20%
to 30%
the
Treasury on long-term bond rates.

the

In passing the savings bond rate
increase, the House conferees ac¬
cepted the Senate ceiling of 414%
third
Housing Bill which just instead of no ceiling and the
on the 1960 contests.
went
through Congress. Earlier Senate accepted a House version
The problem is particularly in¬ attempts had been made to remove of an amendment to the tax laws
tensified by the division which them and an attempt was again permitting the tax-free exchange

decision and action has been and

is being assessed, at least in part,
on the basis of its political impact

of control would

following this pat¬ to
regulate iritra-industry competi¬
tern, there would be abput a 20^'
tion in the case of banks. It is the

—

and loan situation

case.
The reason,'
is that the savings and
loan business is enjoying a fabu¬
lously successful yean Estimates
now
place the expected volume
of new savings this year of sav¬
ings and loan associations in the*
range of $6.8 billion — a sizable
increase over last year's recordbreaking net saviftgs gain.- Ancl
on
the • mortgage
lending side,
savings and loan associations will
account for $15.5 billion in new
loans—roughly one-quarter more

Sayings associations have been
Banks. There are now no Federal able to maintain a steady flow of
exist controls of this
type except that home financing to
real estate

Republican Party to pin a
"spender" label on the opposition. year trend in that direction. 'They
By the same token the Democrats contend that higher interest rale's
farmers
get
felt that the Housing Bill provided will
for their prod¬
substantially
increase i the
Kenneth G. Heisler
the b,est vehicle possible to show cost of carrying the
ucts
is
dieFederal, State
that the opposition was "callous" and municipal debts and have an
tated
by
to human needs. So you have the adverse effect oncapital forma-;
Washington policies. Washington
is looked to for labor laws, high¬ makings of a king-size political tion and prosperity generally. '
issue which exploded all over the
These advocates of low interest
way projects, public works, civil
rates feel the Administration has
rights and the like. Savings and place this summer.
loans
State or Federal — are no
gone too far. Although they ap¬
Reviews Housing Bills
proved the rise in the savings
exception. My subject is timely.
The last Housing Bill contained bond rate from
314% to 334%,
Political Climate
two
items
providing additional they would not approve the re¬
One moval of the 414% ceiling on
Any discussion of the savings authority for the business.
palatable.
The price

be: the

that

turned upward

again

Thursday, October 29, 1959

would

imposed
by the Federal Home
applyihg to the Housing Bill. Low Loan
Bank
Board
on
Federal
interest rates do appeal to many
home loan bank credit and those
people regardless of the austere
imposed by the Federal Reserve

private enterprise

versus

of course;

ex¬

have just mentioned as

in mind

borne

political

with sufficient

good¬

this type

will

economics of the situation.
For
Our government emphasis is Party leaders in both camps are
slowly changing from a predomi¬ striving for unified political con¬ instance high interest rates pre¬
trol
under
their
own
banners. sent a real problem to many sav¬
nant government
of sovereign
loan associations that
states to a predominant central One-party control would remove ings and
much of the political controversy hold long-term low interest rate
government
from issues such as housing, but mortgages. Low interest rate ad¬
ema n a t i rig
despite its faults two-party con¬ vocates in Congress contend the
from
Wash¬
trol is no doubt better than the question is not black and white.
ington.
The
European parliamentary-Prime For instance in the past interest
process
is
Minister type of government.
rates have tended to follow a 40g r a d u a 1
The political issue changed over year cycle.
There was a; bottom
enough and
the
Housing
Bills from public in 1901 on interest rates and a high
perhaps ac-

housing

where this type
be acceptable.

interest

outcome of the ballot boxes.

A.B.A.'s tax

has intensified

competitive success

have

date

attempt only to re¬ 4 The Federal Home Loan Bank
late this subject to the savings
Board, at one previous time in its
and loan business and what might
history and now currently, im¬
be anticipated depending upontheposes a selective control over bor¬

tially as normally would, be the case. He credits the success of
S & L Associations for helping to keep the housing rate up and
their

which

control has not been used

cept in time of emergency. (such
as a major depression or
a war) •
and it is unlikely that the Ameri¬
can
public has reached a point

this year have been problems

involving

particularly impeded the housing boom, and opines that
construction in the immediate future will not decline substan¬

that

issues

credit controls.

cerned the savings and loan busi¬

not

notes

this

changes ; of

Inflation and Interest Rates

ness

have

aides.: In

three/

| The third Housing Bill was signed
by the President.—Ed.J

Associations

L Association official finds that

House

about

bill

made from the previous bill.

were

56 Beaver St., N. Y.

DI 4-4355

Volume .190

Number 5894

The Commercial and Financial Chronicle

(1799)

ahead

Overloading the Donkey

taxes

The

crisis .is

for

dirfdends,

greenbacks in the form of stock

in lieu of cash

dollars

integrity, symptomatic of the heavy load

individuals

shelve

less

essential

international

Thereis

„.v

should

sulting in higher taxes,

;hese

financial

way

or-

means, that
costs .tend' to find their

tax

into the price and cost struc¬
Government borrowings

monetary cri-}

ture.

sis? What do

compete with
private sector.

mean

this? What
its

are

stock

highway

serious

programs

reac¬

borrowings in
' J.4""

the

are

Fiscal

now

premium

heavy that an
is being put

avoidance if not tax

prices
and new high
yields reflect
this

uneasi¬
The

ness.

de¬

dCQUI.Ul

for loan

mand

funds

deficits

Treasury

loan demand.

The threat of bigger

deficits

budgets and

government
raises

States
intensify the

United

strong.

about

doubts

future

the

value of the dollar.

Redemptions
savings bonds exceed new sales.

Interest

reached

have

rates

levels not known by this genera¬
tion. Many bankl are loaned up;
the scarcity of loan funds
rising interest rates, housing
starts
are
turning down. Some
ne\v or projected private and gov¬

have

issues

bond

ernment

withdrawn, delayed,

been

shelved.

government and private
policies and actions are at the root
of *

troubles. Both need

our

sis.

But

.which

lace

not

analy¬

problem

This

crisis-talk

something

Donkey"

the

partly on
call "over¬

donkey." This is a
we have exhib¬
several previous postwar
the

tendency which
ited

months

There has been

from

the

securities

American
our

financial

Both

foreign

and

people

talk

dollar.

flight

own

our

of
deposits

owners

and

institutions

have

begun to wonder. Last year we
lost between $2 and $3 billion
worth of gold. The drain has con¬
tinued. We are now faced, in our

international accounts with

dol¬

longrterm,

who

some

this falL;
attrition—hold¬

new

now

the

billion in

and raising
money

find better

uses

for

grams,

In the

income

slows

impacts;

governments

not

solve

from Uncle Sam. Some 25 million

Americans

the

regular

get

checks

government

long
tax

Countless

expenditures to Congress annu¬
but the discretion of the

warehouses

President

the

At the end of last year,

has

been

demonstrated

injurious effects of

corporation

tax,

our

admits of little

has

or no

absorb

$45

some

bil¬

the

budget. Numerous laws of

grants-in-aid to the states. A
welter of other programs calls, by

and

usually

that

from

the

17%

over

expenditures

bargains that business, farm¬

and' citizens,

•

six

secu¬

100%. Interest

natural resources at

government

i 1 y

can

government

earnings and what is the

the

obtained

programs.

Yet,

Commission

Services

Maritime

Associations^
Cooperatives,
Rural

for

Electrification

Administration^
Administration,
Commodity Credit Corporation,
Farmers

etc.

the

have

slum

renewal

cilities

Home

field

housing

clearance

and

boom,

This advertisement is neither

need to do
•

than balance the budget; we

lar gap in reverse. This is a matter

should overbalance it—generate a

offer to"sell

The

Continued

nor a,

solicitation of

offer to buy

any

of these securities.

offering is made only by the Prospectus,

NEW ISSUE

October 27,

1959

surplus.

United

the

concern

States

Treasury,
the
Federal
Reserve
System, and should be of concern
to all of

us.

Government

larger sector of
the

While

lem.

have

controlled

inflation better than most (but not

ail) nations, by
omies

have

now

been

foreign

econ¬

rebuilt,

fre¬

quently with highly up-to-date
equipment. They are able to pene¬
trate

and

our

and

own

markets

home

foreign markets. A basic
foreign trade patterns
position is taking place. This
our

shift in

our

factor

which

contributes

the feelings of trouble ahead.
The

Private

about

answer.

Foreign nations

would retaliate. What
is control
our

our

costs

must do

and, therefore,

prices.

The

gov¬

the figure is run¬
ning almost 50% higher. Govern¬
expenditures

now

this

determination

industry's
not

apparent
become

the economy grows,

lish

after

economist,

study

countries,

many

that

when

national

once

the

con¬
gov¬

approaches 25%

income, inflation¬

Copies of the Prospectus

may

be obtained in any stale from such of the several Underwriters
as may lawfully offer the securities in such state.

including the undersigned,

forces take over: resistance to
payments becomes stronger,
looks for easy ways
out, tax loopholes tend to be mul¬
tiplied.
ary

tax

the politician

has

been

disputed,

evidence that

there is

good

have approached

der the

including

get,

Price $10.00 per share

Eng¬

extensive

that the national government, un¬

($1.00 Par Value)

the legitimate

Dr. Colin Clark, a famous

of the foregoing. Wage escalation
clauses and annual wage increases,

far

Class A Common Stock

functions of government will grow.

some kind of a ceiling in the taxtakfe. In fact, it is not at all certain

benefits

LINES

leverage on our economy.
We
should expect, however, that as

party to an inflationary wage set¬
tlement grew out of the realization

fringe

FREIGHT

amount to

size, the. behavior of
government has more and more

huge

While this precise figure of 25%

steel

TtUOBm

about 30% of our GNP. Because of

of the

is not the

1940,

expenditures constituted
of our Gross National

ernment tax-take

Sector

our

Product. Today,
ment

250,000 Shares

becoming a
the economy. In

even

20%

cluded

tariffs or creating
import quotas is not economic and
Raising

and

1930s

ernment

Rising government spending and
dubious fiscal and financial poli¬
cies are only a part of the prob¬

present tax fates and bud¬
operate
in
the
years

can

Cruttcnden, Podesta & Co.
A. C. Allyn and Company

Bache & Co.

Boettcher & Company

Dempsey-Tegeler&Co.

First Securities Corporation

Incorporated

Dean & Grosz & Co.

Durham, N.G.

Straus, Blosser & McDowell

urban

projects, community fa¬
administration, public

equivalent to the tax increase, and
this puts pressure on the economy.

and

Administration

Aeronautics

Banks

pri-

elimination

Energy

National Farm Loan

76%; inter¬

It has been demonstrated again

economies

Business

termediate Credit Land Banks and

and again that major government

m a r

include

Small

Administration*
Board, Inter¬
Commission, Fish
Wildlife Service, Federal In¬

and

30%; gen¬
by 35%;

Atomic
General

loans,

housing by 329%.

rather, he asks, what

type loans, De¬
partment of Commerce, Treasury*
Defense,
Interior,
Agriculture^

Civil

national affairs by 114%; agricul¬
ture by 165%; and commerce and

to¬

These

pages.

series

Administration

state Commerce

expenses

labor and welfare by

of the

market

generally, have
appetites to feed at the
public trough.
The Federal loan, investment,
guarantee
and
insurance
pro¬
grams make a list covering five

f>vnenditures have risen by nearly
20%-. «Expenditures for veterans
have gone up 22%; expenditures
eral

out

world

enormous

rity expenditures have remained
roughly stable, in these five years
expenditures in all other tonaj&rprograms' have gone up arfywhere

ing the tax entirely. It is evident
that we are in a critical territory
with a high 52% tax rate.1

are

ers

whole

than two-thirds of the

pays;

security

But

Since 1954, while national

;

rate by, say, 12 percentage
points, from 52% -to 40%, would

stock

such

have
major

level, somewhere between $40 and
$45 billion.

day does not ask what dividend

government.

national

shifted

investor

expect to

have been largely stabilized since
1952 at a figure close to present

while related to

sophisticated

cannot

low-cost

of the

argued that in

the light of the international situ¬

ation,

the

part, and caused them to be
piled up in mountainous surpluses
which costs us $1 billion a year
just for; storage and handling-.
Some two million persons live in
government - subsidized public
housing. Scores of cheap or sub¬
sidized lending and guaranteeing;
government programs provide

Sometimes

commodities
and

long standing provide for dozens

law, for continued,
rising, spending.

farm

domestic

lion, or roughly 60%, of the total.
Carrying charges on the debt ab¬
sorb about $8 billion, or over 10%,

the tax rate, are by no means pro¬
portional to it, Thus,,a reduction

Federal
giving out food

were

than five million

penditures

budget

uncontrollable by

corpo¬

down economic growth.«,
the

occa¬

"needypersons." Food got into the ware¬
houses in the first place because
of Federal farm programs, which,
while regimenting the farmer with
acreage and other controls, priced

over

been declining steadily. Now, over
80 %
of the budget is relatively

income

progress; and,

receive

him. That is, it
discretion by
him. Major national security ex¬

run, the corporation
(52%)
probably is

economic

others

reduce his spending by an amount

Thus, in

this

the past year, some 40 million
Americans
received
payments

spend more, the taxpayer may not

pro¬

Senator Byrd recently stated in

some

ally;

for corporations as well as for in¬
dividuals — that
is, by slowing

budget hay have cost- and price-

raising

new

sional payments.

doing, it reduces the tax base

The

Furthermore, it should be em¬
phasized that even a balanced

the

programs

problem.

dent is required to submit his fi¬
nancial program of revenue and

benefit to be obtained by abolish¬

;

will

causes

invention
we

to grips with

come

basic

expenditure

the

from

v":

yield

who fear inflation
get out of fixed debt
instruments, preferring. to
pur¬
chase real estate or equities—the
Treasury's problems are, accen¬

the

often distorted by, tax considera¬

tions.

their money or
want to

done

tax dollars. Unless

some

willing to

some

inter¬
have
point of taxation
ceiling. Is there any hope of cut¬
ting down government spending?

business decision becomes a deci¬
sion
heavily governed by,
and

and

tuated.

occasions.

nancing about $80
next

ers

rests

might

bonds. The Treasury is confronted
with the serious problem of refi¬

room

today, in¬
what-would have resulted
cluding veterans, Federal work¬
from, a flat proportional rate of
The Budget and Economy Act ers,
the-* armed forces, farmers,
20%!.(See: Economic Intelligence, of 1921 established an executive social security recipients," and
September,
1959.)
Every major budget system in which the Presi¬ others, or one adult in every five.

ration

the
resort to "printing press borrow¬
ing"
or
its equivalent, if - the
Treasury were not limited in its

capable of solution,. $7 billion of

"Overloading

barring

emergency,

reached

With problems of

•

are

payment of interest

Both

save

•

that,

national

Controlling Spending

funds. At least; we could avoid

New lows in

cash

always

efficiently,
more- compe¬
tently, more economically, and

and

above

due to

:{■' V

bond

lieu

and keep

none,

growing

stated

eva¬

and

is it?

dividends

almost

new ones.

To be sure, there is
for doing what has

the

primary effect of this high

Responsibility

Last November, we were

eliminate

adding

pre¬

matic

tax is to raise the
told, a
fiscally irresponsible Congress had ..requisite pre-tax return required
to justify such new investment. In
been elected. By February of'this
a -competitive
economy; such an
/ear, however, it was^ clear that
the problems which 'now underlie •''inflated return" cannot be se¬
cured simply by marking up prices
our
much-discussed impending
or
estabiisning prices to cover the
monetary crisis would inevitably
added tax costs. So how is the tax
restrain somewhat' the spending
shifted?; <An adequate after-tax
mood of Congress (see: Economic
return is obtained only by waiting
Intelligence, Chamber of Com¬
for investment projects to come
merce of the United States, March,
along which do have a larger op¬
1959).
-V C'-V
If
prosperity
continues
until erating r advantage. The effect of
the high corporate tax is to shield
next June, the FederaLbudget may
existing facilities and investments
be close to balance," with' the pos¬
during the period of deferment.
sibility of a small deficit. Such a
The tax defers the eligibility of
moderate deficit could be financed
new
business ventures. In short,
by
absorbing money savings,
this high tax rate reduces the ef¬
which, nevertheless, would com¬
fectiveness
of
competition
and
pete with other demands for loan

How serious

foregoing is only sympto¬
of what is going on under
heavy load our business and
American people are being asked
to bear. It can be fairly safely

the

;

shifted for the most part. But the

causes?

dividends.

The

though the personal in¬
rise to 91%, total
incom'e tax liability in
1955
amounted to only 23.2% of total
taxable income—only, three points

der pressure.
...
The endrmous pressure for gov¬
ernment spending at all levels, re¬

cash

"greenbacks" in the form of

own

tax rates

come

productivity; improve¬
ments, have put our economy un¬

headed for a.

receive

sion. Even

increasing talk of an
impending financial and monetary
crisis.'
Why,
in
the
midst
of
prosperity, high employment and
e x p a n sion,

excess

states.

Taxes

tatf

with

these

enormous

investment

measures

company doing with those earn¬
ings. He prefers not, as,a rul^, to

new

revenue

dividends.

potential serious crisis with national^

over-spending and over-growth.

tax

fers stock dividends, and corpora-•
tions have learned to print their

several

business and

repercussions. The author proposes

restrain government

additional

enormous.

tions^.

Dr. Schmidt pleads that we

public and private spending and

in order to avoid

programs
and

being asked to bear.

are

and

Construction,

dividends, aird queries from abroad about the treasury's plight and
the

balanced

maintaining; interstate

ex-,

plored by well know* business economist. He finds investors' prefer¬
ence

illustrated

of the United States, W ashington, D. C.

incongruity of prosperity and financiahmonetary

basis

This was excellently
by the hesitancy of
Congress this summer to levy the
necessary
additional
taxes
for

By Emerson P. Schmidt,* Director, Economic Research Department,
Chamber of Commerce

the

budget. Yet, the resistance to

page

2ft

The Commercial and Financial Chronicle

(1800)

Jv •'

' '•

sented

Our Reporter on

ParliameiR

20,

„

Plaza,

—

NSTA

Economic
Growth and Structure: Sugges-.
tions
on
Research
Objectives,

Comparative

CHIPPENDALE, JR.

York
post-

New

(paper), $2.81
V

paid.
•

'ft'

Study

reau^of Economic Research, 261
impending announcement by

Oct.
to how the Nov. 15 matur¬

the Treasury (expected today,

29)

ities x>i the 3%s and 3*2S will
taken

of, has been and still
important business in the
market. Because of the

care

the

money

improvement in yields of Govern¬

securities,- it. is evident that

ment

refunding operation " of the
Treasury will be "carried out on
a more favorable bavsis than would
have'beeft the case, a week or so

here

but
is

not

let-up in maturity
as tax switches,
indications that it
as it used to be to

are

easy

Cavers

well

The talk, about reopening the get some of the issues which are
5s of 1964 seems to have gone the. being bought to replace the secu¬
The
way of .all flesh, with! the 4% % of rities that are being sold.
1964
now
appearing the likely market appears to be very thin on
candidate for a reopening if there certain Government issues, espe¬
is to be such a thing.in the com-; cially those that are selling at a
ing refunding. vIt is believed that
a one-year issue will be used to
take care of the maturities held

substantial discount.

by the Federal Reserve Banks.

to
exchange Federal National Mort¬
gage Association 4s for the nonmarketable Treasury 2%s of 19751980 does not appear to be attract¬
ing too much attention yet. How¬
ever, the offer is open until Dec.

ply

offer

The

the

Treasury

which

the

ample

obligations

Credit Demand

The money

have

been

Outlook

and capital markets

Schuster,

showing

improved

tone because thereas an enlarged

demand

for

short-term,ymiddle-

term and long-term

fixed income

obligations/ There are many con¬
ditioning factors in. the situation
a this time which are exerting an
influence on the buyers of Gov¬
ernment securities, among which
is the uncertainty created by the
long steel strike.
It is evident
the

that

demand

for

funds

for

$3.95/

year

modest

in the money market.

over,

Facts

short

term

tions

not

are

Itake

needed
poses.
some

to sell them
that
are
not
than tax pur¬

prone

losses
other

for

In addition, the belief that
kind of an exchange offer

be forthcoming in the future
Treasury as part of the
so-called
"long range refunding

ing

kept at
issues

liquid

work

until

they

•'

have, been

5s due

1964

received

were

by in¬

The demand for this note

issue appears to have made small
investors' very conscious of the
Government bond market.
As a

result, it is reported that the de¬
mand for the 4%s of
1964, as well
certain

the

middle

maturities* which

sizable

are

discounts,

has

still is developing.

indications that

amount of money

earmarked

for

term

selling at
been and

There

are

also

not

unimportant
which had been

fhe

purchase

equities is peing put to work in
the

intermediate

sector

the

Conditions:

cents.

Selling

St. Louis 1, Mo. (paper), on reIrish

Treasury

obligations by commercial banks
is still going on,
but at a less
vigorous pace than was the case
a

few

quite

weeks

the

ago.

same

There

pressure

is
now

not
to

funds which can be loaned
out at a higher rate, although the
get

Charles

Export Promotion Board

Annual

Report

Association

ment

port—National Association
of
Investment' Companies,
61
Broadway, New York 6, N. Y.

services

and

Experience

Manufacturing

facturing
Council,
(paper).

Industries
Sydney,

— Descrip¬
operations and
private bank —

Bank

Brothers

Advisory

Australia

Market

Forty-page
study including marketing sec¬
tion

based

trade

and

—

census

retail

marketing map —
J. Walter Thompson Company,
•420
Lexington
Avenue,
New
York

17, N. Y.

(paper),

on re¬

Canal & Water Resources:

Should

New

Control?

York

Give

New York Citizens

—

Committee
State

for

Water

Preservation

Resources,
100
Albany, N.
Y.

State

Street,
(paper).

N. Y.

Book

the

Iron

and

Industry—American Iron
Institute, 150 East
Street,
New
York
17,

Steel

Kelly will succeed Lester J. Thorsen of Glore, Forgan &
Co., Chicago.
; J_
j
»
'■
■
■

SECURITY TRADERS

Monetary

,-wV""

LOUIS

ST.

;

The Security Traders Association of St. Louis has elected the fol¬
lowing new officers who were installed at the annual meeting held

Oct. 20.

Harriman

Y.-.-v

- ;

«••

;

' 7

•'

—

MacQueen ' Street—Co¬
University Press, 2960

Broadway, New York 27, N. Y.,
$6.
Revolving
Loan

Credits

Term

and/or

Agreements—Comprehen¬

sive

Check

List—The

Hanover

Bank, 70 Broadway, New York
15, N. Y.
Savings Banks Association

of the

State of New York, Annual Re¬

port

Savings Banks Associa¬
State of New York,

—

John F. Matye

tion of the

Street, New York
17, N. Y. (paper).
Significance

Speculative

Edward

White

Kenneth

Kerr

Matye, Dempsey-Tegeler & Co.
Wichmann, Stifel, Nicolaus &

Vice-President: W. Jack

First

Incorporated.

Company,

Second Vice-President:

the

Inner Action of the Market—C.

W. Jack Wichmann

President: John F.

Jackson P.

Bayer,

A. G. Edwards

Sons.

M. Flumiani—Institute for Eco¬

nomic

and

Financial

Third Vice-President: Edward A.

Research,

O. Box 124, Newton Center
59, Mass. (paper) $2.95.

Technical

Change:

The

Attitudes

White, White & Co.

Secretary: Charles Goodwin, Goldman, Sachs & Co.
Treasurer: Kenneth D.

Kerr, Fusz-Schmelzle & Co., Inc.

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

of Stcelworkers—Olive Banks-

The Seventh Annual Dinner Dance of the Investment Traders As¬

Liverpool University Press, 123
Grove Street, Liverpool 7, Eng¬
land, 21s.

sociation

Understanding Put and
How

—

Reduce

Market

Risk

Park

York

Use

Operations

Filer—Crown
419

16,

Call

—

Stock

Herbert

Publishers,
South,

Avenue,

will be held

Saturday evening, Nov.

Op¬

Them

Your

of Philadelphia

14, 1959, at the Germantown Cricket Club.

Inc.,
New

(cloth), $3.

D'Orazi Addis

With Robt. L. Smith.

(Special to The Financial Chronicle)

ST.PAUL, Minn.—Oscar S. Glover

SAN

has become affiliated with Robert

L. Smith &

Where the Steel Companies Stand:
Mutual

Savings

Biinks—Report on Assets, Lia¬
bilities, and Capital Accounts—
Federal Deposit Insurance
Corp.,
Washington 25, D. C. /
Committee

CLUB OF

Co., Pioneer Building.

FRANCISCO, Calif. —Mary

Cain, Alex. S. Heller, Edmund

Orrin and Forest L. Treanor have
been added to the staff of

(paper).

Commercial

Bateman, Pacific Northwest Company,

Co.j 59 Wall Street, New York

tions

Charting Steel's Progress: Graphic
Facts

Mr.

quest.
Barge

Homer

Seattle.

110 East 42nd

Australian
„

Secretary: Earl Hagensieker. Reinholdt & Gardner, St. Louis.
Treasurer:

Re¬

Companies—Annual

Stein Bros. & Boyce,

Baltimore.-

Invest¬

Homer J. Bateman

Hagensieker

Second Vice-President: Charles A. Bodie,

Board, 33 East 50th Street, New
22, N. Y. (paper).

National

Earl

Bodie

—

Irish Export

—

York

Brown

Indus¬
try in the Next Decade—Manu¬

,42 nd

Dwindling

The selling of discount

Australian

and

Bank

quest.". ~

tive brochure

Perspective — Federal Reserve
Bank, of San
Francisco, San
Francisco,
Calif,
(paper),
50

Steel

Government market.

Major B.

(paper).

Agriculture and Recent Economic

helped

favorable way

very

vestors.

—

Louis, .510 Locust Street,

lumbia

Issues

by the
in which the

St.

Donald

The intermediate-term Govern¬

ments

James

and

Railroad Equipment Financing

Joseph E. Smith

Kelly

Robinson,

Morton

Personality of

poses

"Magfi^irves'' Help Other

Einstein— First National

5, N.

pur¬

$3.

be¬

will

Edward

Calderwood—The Brookings

Investing For Banks

plan" makes the owners of the
long-term discount Government
bonds rather reluctant about sell¬

the* most

jneeded for the usual business

Han¬

Institution, 722 Jackson Place,
Washington 6, D.
C.
(cloth),

from the

re¬

are

Marshall

—

Herbert
D.

may

Government

issues because these funds

Administra¬

Washington 6, D. C.

pension funds are buyers of
bonds from time to time.

Also, the market for these secu¬
rities
is on. the restricted
side
since the holders of these obliga¬

sult, a sizable amount of money
is currently available for invest¬
ment

Approach
Tuck

Bargaining-

Railroad

ing

ease

Dartmouth College,
N. H. (paper).

tion,

long-term Governments are
only a very limited
amount of attention even though

likely to come about.
Some
market
experts
believe
even

The Segmental

School of Business

The

money

there could

—

Simon

Introduction to Economic Reason¬

jngly, the credit stringency which;
of the

Co.,

;

ment:

Treasuries Quiet

seemed to have been in the cards
latter part

Newburger
*

—James Brian Quinn—Amos

Businessman's

not

Smith,

Philadelphia.

Evaluating Research and Develop¬

for ;the

Joseph

Report—Association of American

inventory purposes has not been
as
large as would be normal at
this season of the year if there
ing them at these prices.
had been- no interruption in the
steel industry.
In addition, con¬
sumer credit expansion could be>.
slowed by the steel strike and the
Christmas trade may also be ad¬
versely affected by it.
Accord,

Vice-President:

Railroads, Transportation Bldg.,

Long

and

20,

switch issues are

sold.

these

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

City.

First

1960 for the National

•

Fifth
Avenue,
N. Y.„ (cloth),
' *r '
" < ■' ' h

"630

York

New

Stocks

—

the tax

ing is being done before
loss or maturity

state

President Edward J.
York

•

being bought, the buy¬

are

slate has been named for

following

Security Traders Association:

Nelson—

Common

Bernhard

Arnold

attracting

Easier
#.

intermediate

The

;The Johns Hopkins Press, $6.

Treasury market, unless the sup¬

recent

the

result
betterment in the
and
long - term
As

David

—

James

and

Evaluation

ago.

America

Latin

There
switches

NATIONAL SECURITY TRADERS ASSOCIATION

Madison Avenue, New York 16,
N. Y. (paper), $3.
deposit institutions are still a long
way from that point where they Corporate
Earning
Power
and
do not know what to do with their
Market
Valuation
1935-1955—
loanable
funds.
The
restrictive
Sidney Cottle and Tate Whit¬
money conditions are continuing
man—Duke
University
Press,
to make credit hard to get, which
College Station, Box 6697, Dur¬
means that interest rates will still
ham, N. C. (cloth), $12.50.
be on the high side for some time
Electric V Power
Regulation
in
to come.

the

;

Organization—National Bu-

and

The

Thursday, October 29, 1959

the

Chancellor of the Exchequer

JOHN T.

British Information Sendees, 45
Rockefeller

the Working of the

System—Report

pre¬

Now With Stowers

Summary of the Steel Com¬
panies position and their Pro¬
posals to the Union during the
1959 Negotiations — The Steel
Companies Coordinating Com¬
mittee, 375 Lexington Avenue,
New York 17, N. Y. (paper).

Investment

D'Orazi

Company, 9-Sutter St.

(Special to The Financial Chronicle)

KANSAS
Buterin

with

CITY,

Stowers

Wyandotte
merly

with

Mo.

—

become

has

Company,

Street.
E.

John

connected

was

Hutton

Joins Inv. Service
COLORADO

SPRINGS,

Colo.—

4725

William G. Bunce has been added

for¬

to the staff of Investment Service

Co.

Co., 214 East Monument Street.

Volume

Number 5894

190

The Commercial and Financial Chronicle

THE MARKET

BY WALLACE

pact on the market appraisal has shown

AND YOU

...

(1801)

of the shares.

STREETE

The issues that

were

scares

Industrials
several

together

first

this

week

for the

ket climate

time

month. A flood of

earnings reports,
the

for the oils for the first time
in

the

stormy.

the

health
shown

never

ability to shake off

their troubles market wise

the

tobacco

shares where

cause

back

indicate

that

the

com¬

within

several

author

:J:

out.

Mortgages for

Ross Ghman. of

Federal

•

-•

Neither

been

has

rose

❖

Indication

that

return

court-ordered

work

there

sistance

without

even

Paper.
it

.«

»,

# *.

industry against the con¬
tinued impasse.
;

will

Samuel L. Ross has been elected

com¬

Chairman of the board, of Renyx,

gages

dramatically

Field & Co., Inc., 259 Park Ave.,
New York .City, it was announced

held by it from bondholders

new

making payments with specified

"by William G.

U. S. Treasuries

Dam

roth,

President of
T em

Mortgages owned by the Federal
National
Mortgage
Association
may be acquired in exchange for
certain
government
bonds, ac¬
cording to a joint announcement

D a

ple ton,

t h

Corporation,
of

which

have the most

The

have held in

$150 million or thereabouts. The
mortgages were described as "well
seasoned investments, having an
this unexpired national average term
of about 15 years and an average

success

Sutherland

narrow

made

developed which
major problem of
figuring out which maker will
leaves the

latest round of introductions.

growing re¬
within the steel

was

even

Renyx,
Field
is
a
sub¬
today by the Treasury Der.
partment and FNMA.
sidiary,
Bondholders
Mr.' Ross,
may
make com¬
has been available at a 6'<
Papers in Rut
President of
petitive offers to acquire 4% G. I.
yield, and a price range of mortgages held by FNMA for the
Renyx,
Field
Paper shares were back in
only a bit more than 10 points account of the government. Pay¬
since last Dec.
a
quiet rut after some atten¬
for all of this year. At present ment may be made with U. S.
1,
succeeds
tion to them as a barometer
2-14%
bonds,
Invest¬
George M.
there
seems
to
be another Treasury
of generally improving busi¬
Samuel L. Ross
ment Series B, 1975-80.
Field
as
wave of new brands entering
ness had been
According to FNMA President,
:
Chairman. He
nipped by con¬
the market as new cigaret J. Stanley Baughman, the amount is also President; and a director of
cern
over
the steel strike's
of mortgages to be made avail¬ American Trusteed
Funds,:Inc.; a
effect on the economy. The papers, tobaccos and filters
able
for the
exchange will be trustee of. Lexington Trust Fund,
have been

Breaking of the solid indus¬
with.Kaiser Steel
and Detroit Steel signing up
seemingly neglected one in
independently, was the first this section in Sutherland

try front

National Mortgage Assn.

announces

sj:

costly showed up starkly in conspicuous on any rebound and successful brand. It long
the third quarter reports now in the most recent play in since settled down to more
electronics generally.
mundane behavior and lately
reaching flood tide. But in
general, results for the first
two
quarters were lush
enough to offset the bad third
quarter and the year-to-year
comparisons are favorable.

located at Philadel¬

Government Bds.

petitive bids 'lor 4% G. I. mort¬

sfc

•

ran

are

FNMA to Exch.

dividends. That the strike was

Agencies

only.I

phia, Atlanta; Chicago,^Dallas, and
Los Angeles. There is also a sales
office in New York City.

the

tions,

necessary forms; as well
additional copies of :the FNMA
[The views expressed in this article brochure that explams the stand¬
do not necessarily at any time coin¬ ardized exchange procedure, may
cide with those of the "Chronicle."' be obtained from anyV FNMA of¬
They are presented as those of the fice. The offices of the FNMA

the years.

over

couple of - excep¬ points of its year's low and
"
;
steel companies, nearly a dozen and a half
The exception was Lorilclosed down, since the niiddle points under the best price. lard which a
couple of years
of July, were in good enough Siegler had about the same back
was
something of a
shape to declare their usual reaction after its popularity wonder-worker when its sales
With

The

are

its market per¬ yields of 5 to 6% prevail.
Tung-Sol Electric Nevertheless available statis¬

fers must be received by 2 p. m.f
Dec. ~1, 1959.
/

deflated item in tics
electronic group. It had

was

beaten

panies have been able to pro¬
months all helped had a runup and a reaction mote new brands and increase
along.
early this year which dropped consumption commendably

many

the

was

good
Purely
break in formance,

and demand

strike

steel

and have

able to put times when the general mar¬
any real

were

good gains

repeatedly

no signs of
slowingexpansion and diver¬

sification.

The Troubled Tobaccos

down

down its

$5,500."

Company With

range

unpaid principal balance of about

and Vice-President and
of

director

Corporate Leaders of America,

Inc., and Lexington Funds, Inc.
A member of the

Renyx, Field

organization since -1945, Mir. Ross
became

By agreement between the Sec¬

regional

sales

manager

Nom de Plume
for the New York metropolitan
points for
retary of the Treasury and FNMA,
the year. Even plans to merge
The company that has been the Treasury Department will re- area in 1947 and .Chairman oi the
deerrin the bonds for FNMA and
with Kalamazoo Vegetable
Revived Interest in Oils
Executive Committee in 1955.
forging to new highs is some¬
will credit the proceeds against
;.
For 20 years prior io his Renyx,
Oil earnings were chiefly Parchment Co., which would thing of a misnomer, Univer¬
amounts
FNMA borrowed from;
responsible for the new atten¬ nearly double the sales, failed sal Match. It is still the larg¬ the Treasury^ to purchase the Field association, Mr. Ross was
to stir much in the shares. est maker of book matches same mortgages.
with National: Broadcasting Com¬
tion rthat
centered on the
All offers to exchange will be pany, serving as the network's
shares in this section.
The The merged operation will be but is an important maker of
renamed KVP Sutherland Co. coin
handling devices, vend¬ made and considered on a com¬ first program. manager.
figures indicated that all the
more
obvious
Renyx,- Field is a -retail organi¬
sign of ing machines, components for petitive basis only, under a stand¬
talk of the oil companies hav¬ The
ardized
procedure. A letter of zation dealing in all. mutual funds,
ing their own private depres¬ neglect here is a yield of missiles and other military
5ft, well above the items and is rumored on the notification from the Secretary including * Nucleonics, Chemistry
sion had been a bit overdone. above
" •' 0
it
average return on
the big point of acquiring several of the Treasury enclosing a copy & .Electronics Shares, Inc.; Cor¬

about

dozen

Sfi

There

were

indi¬

concrete

issues.

name

new

cations

quarterly reports A "Many-Splendored" Issue
up to here that the mutual
An oddity that offers nei¬
funds have lightened up their
ther
dramatic
earnings or
oil holdings in previous
yield, but has a vast potential,
months
this

but

liquidation has
wasn't

end

whether

not

come

clear.

The

result of all the neglect
through last year and this one
was that the oils still provided
net

of the

some

better statistical

bargains around, such as
moderate price-earnings ra¬
tios and above-average yields.
Improved earnings naturally

pointed
but

the bargain status

demand

still

definite

merely

As has happened

space age

bumped into occasional

trouble
a

ily, While

ground

some gave

easily under moderate selling,
it

was

highly logical for

profit-taking to
the way
lier

land trust.

the

then

the

was

limited until

of automatic

policy of buying back its own
shares when market
prices
were

considered low. Since it

reconstituted

was

trust

this

even

after

which
acre

any

ear¬ tant

through

its

land

has

been

ment to each bondholder. All of¬

porate .Leaders Trust Fund, and

Lexington

Trust

and

Venture

Funds.

This is not

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

212,490 Shares
i

Ennis Business Forms, Inc.
(Formerly Ennis Tag & Salesbook Company)

I1I11S
•USINESS FOVMS

About

now

Common Stock

(Par Value $2.50

per

Share)

merchandising

that cost a dol¬
it

Price $16.25 per

difficult to

clas¬

sify is Rapid American Corp.
which started out as Rapid

Copies of the Prospectus
announcement

Electrotype and was closely

the

may

be obtained in

is circulatedfrom

undersigned,

as may

any

State in which this

only such of the.underwriters, including

lawfully offer these securities in such State.

own

give

better

than

of land behind each

some share. With land

crop up

they had soared
year

brochure

by the Treasury Depart¬

vending machine business

that
Since

FNMA's

mailed

issue

acquired 98,000 identified with printing be¬
shares, leaving fore it added new interests
slightly less than 1,300,000
that gave some of
and diversified. Now it makes
outstanding. This is backed by
rough time temporar¬ 1,729,000 acres in Texas greeting cards, gift wrapping,

ally, the glamorous

them

occasion¬

had

haven't

much market

the land company have more
only objects
than doubled, in part because
lar or less.
a the
if
company reinstated an old

Space Issues Roughed-Up

■

inal status of

too

temporary flash.

issues

facets

These

change in invest¬

attitude

ment

companies to give it an
greater sales potential.

recognition and
only recently ex¬
tended its 1959 swing to a
is Texas Pacific Land Trust.
range of as much as a dozen
This
old-time
favorite
has
points, although for five years
made a complete cycle. It sud¬
running it has reported new
denly emerged as a major oil records in net income. One of
company instead of primarily
its latest developments is a
the holder of vast acreage in
machine that can handle
Texas starting in the Twen¬
paper money up to $9, de¬
ties. Then a handful of years
livering the proper change
ago it spun off its oil, gas and and
rejecting counterfeits,
mineral rights into TXL Oil
which the company says could
Corp. and reverted to its orig¬ add new dimensions to the

to indicate whether it is

new

the

even

$23 mail

order

and

runs

return

business in jew¬

subnormal but

Eastman Dillon, Union Securities & Co.

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

impor¬ in Butler Bros. Its dividend

part of its huge acreage
a

displays

prices rising, elry1—plus a majority interest

sudden sale of

could have

metal

Kidder, Peabody & Co.

ap¬

far-reaching im¬ peal here is that the company

Smith, Barney & Co.

White, Weld & Co.

Dean Witter & Co.

Incorporated

Paine, Webber, Jackson & Curtis

A. G. Becker & Co.

Equitable Securities Corporation

Shields & Company

Incorporated

October 2c, 19:9

The Commercial and Financial Chronicle

that

stated

Some Current Issues
Continued from page

serving

lending. Now, this
perhaps like bringing coals to
Newcastle, but just to prove that
perhaps even a Superintendent of
Banks
can
be
enlightened,
I
should like to state that careful

state mortgage

number

Financing

Replies to Mortgage

Complaints

thing, the state legisla¬
specifically granted this
power to our savings banks to en¬
able them to make VA and FHA
For one

ture

loans
throughout the
country. New York State, and in
fact the entire
northeast;' as a

mortgage

capital surplus area, has tradition¬
ally invested its excess funds in
the rest of the nation. This, in fact,
has been one of the component
factors

New

making

City

York

center of the

the financial

coun¬

To take
provincial attitude re¬
garding the making of such loans

try, if not of the world.
a

narrow,

in view of the valued role

played

by our New York State financial
institutions, including commercial

growth of this
country seems to be most inap¬
propriate.
We also know that
out-of-state
investments
permit
the

banks,

diversification of investment port¬

folios, in the absence of which
long-time depositors, although at
savings institutions might be put the same time
they were accept¬
in the position of seeking less sound
mortgage loans within New York ing out-of-state mortgages irre¬
State.
Further, higher earnings spective of whether such out-of-

all

state borrowers had

out-of-state investments by

from

deposits with

And finally, it was

banks.

these

types of financial institutions

actually did make arty local - VA
or FHA loans, but that even these
banks insisted on high down pay-

'time
making no-down-pay-

while

ments,

they were

Because

the

local

(

SThere

ties

thif

belabor

bu^ I
Doint

when

was

when

£r£lat in^eres^ to me was
that

lact

only 42 out of 52
City savings banks

York

included

this

sort

ofa

These

basis?

savings

banks

themselves

™

had

$900

properties within the

the

first

half

1959,

nl^dUL«^. than* J^es%.,bfhhs..
more
than 90% of their
FHA

new

■

and

VA loans

erties within New York

76%

the

zero

cent for

per

smaller savings

one

banks

in the

WWmr^s

I know, that in the

past, savings
forcefully replied to
regarding their mortgage
lending policies.
All
too
frequently, however, the rebuttal

.'v/XvivX-

bankers have

criticisms

quite catches
original accusations.
never

all

of the
area

state

may

The

late

are a

few of the

reasons

Savings Accounts
Travelers Cheques

•

why Dry Dock

Life Insurance

U. S. Savings Bonds

Mortgage Loans

•

225,000 depositors.

Foreign Remittances

DOCK

SAVINGS

SANK

Main Office: 742 Lexington Ave., New York
22, N. Y.
318 Seventh Avenue
136

at 38th

Street

Delancey Street at Norfolk

HI Second Avenue at 7th Street

67 Avenue c at 5th Street

Anete exceed *620,000,000 • Member Federal
Deposit Insurance Corporation

and should be averted by
nolirips

New

homes

the

same

State

the

him

the

past,

have

what

you

told

said,

his

"Yes,, but

done

for

lately?"
that

been

mortgage
remains

even

most

lately,

active

markets.

that

perhaps

away

many

But

local

the

some

spective local borrowers

are

fact
pro-

being

matter of bank

policy without any further invesligation, while others are eonsidered for such loans
are

towards

only if they

depositors.

Unless something is done to

would

now

"know

thrn
to

interest

been

Sv
year

numerous
or
wideSince 1949, there have
three such mergers approved
was

oneXSer

appli-

cation submitted, which was subsequently withdrawn,
As

result

the

infrequency

of merger applications, we have
not hacl an opportunity adequately
to enunciate our policy with reto

bank

savings

mergers,

and this
be an appropriate
opportunity to state the general
views of this Department. The
Banking Law at present provides
no clear-cut criteria for the Superintendent to follow in passing
upon merger applications. Virtu-

Banking Department
ways the proposed mer¬
would enhance and further the

positors.

tion-10 of the Banking Law,

public or to depositors
expectecf from the
would - I,
as
Superin¬
be

were

merger

tendent, feel that approval was
warranted,
and
the
burden ' of
proof

falls

the
applying
In addition,
banks being semi-

upon

b^nks in this

regard.

with

savings
puolic institutions, I believe ,it is
my
duty
as
Superintendent * to
make

even

exhaustive1

and

stringent analysis of the' terms
of a Droposed merger than in the
case of stock corporations/
More

specifically,

ask, what
factors

an^lvzed
would
n

have

would

before

might

you

of the major

some

are

that

the

Department

position to

ine whether there

deter-

sufficient

are

affirmative benefits to be derived
from any proposed merger? There
is of course no single factor which

itself would

of important

ber

would

interested

have

For

example, we are
the capital position

institutions

our

in all

are a num¬

elements which

necessity

considered.

decisive

However, there

cases.

and

main¬

therefore

the

consider

strength

the

vidually

and what the

two

capital

banks

indi¬

effects of

proposed merger would be upon

their

surplus position.
if there were a

only

Naturally,
sub¬

very

strengthening of
the

one

banks

this

would

surplus

due

tant factor warranting
such a merger,- -- v T

the

impor¬

approval of

Closely tied in with the question
the
adequacy
of surplus
is
the bank resulting from

whether

the proposed merger would be in
a

much better position than either

both of the

merging institutions

compete effectively with other
savings institutions/ particularly
in ability to pay to depositors
dividend

current

rate

the
savings.

As I have said elsewhere, the re¬
cent imposition of the dividend

ceiling

savings

deposits

bank

intended

not

was

eliminate

competition .'between
banks.

restrain

felt

within
be

rea¬

Within these limitations,most

are

savings

rather intended to

that " competition
which

bounds

sonable.
we

was

concerned

the

over

ability of our savings-banks to
compete effectively.. It should be
.

stressed

however, that only if

the

proposed

and

look

favorably

such

upon

supervise

The

mandate

eliminate

un-

sound and destructive competition

has rarely been relevant to mergers since the banking difficulties

disappear " by
do

nor

banks
are

tect

have

the

interests

the

public

and of the depositors,

route,
advance
depositors

merger

that

any

would result from such mergers.

We believe that the interests of
public in general as ivell as

of savings bank depositors are

maintaining a sound, stable and
competitive
banking
structure,
This requires a system of savings
which

for

the

are

and,

other

investment.
like

has

been

consistent

add

the

that

incorporators

will
long period

surplus fund

there

course,

means

dividends

the

reason

be repaid only over a

well-managed,

properly serve the credit
needs of the public, which pav the

obvious

contribution
trustees

the

maximum

branch

the

see

public

Therefore, we
The primary reason behind this
on
the other philosophy is that there have been
mutual* savings no new savings banks chartered
stockholders, we in the state for the past 30 years

left with the necessity to pro-

fessmg

broader

the

of the early 1930's.
had to rely

have

banks

seek

Only if substantial ben¬

efits to the

which

your

interests of the public and of de¬

merger^ would clearly
substantially, strengthen the
re- toanks' competitive status would

quiring that the Department shall

cor-

this,

striving,-

very

thfre

objectives

are

what

in
ger

some,

spread.
been

the

savings banks to indicate toy-

Bank Mergers

attention to another subject which

critics will always
be able to charge that while
pro-

rect

which

merger

institutions..

are

feel that it is incumbent upon

Savings

criteria*.-Since

know

have

these

and regulate banking merger proposal.
This obviously
organizations in such a way as to would not apply to mergers be¬
eliminate unsound and destructive tween banks.:which are ;, already
competition, and to protect the strong institutions with good earn¬
public interest and .the interests ings records. We would not wish
story the of depositors and stockholders,
to see strong, sound savings banks

York

Barkley

financial

our

Since

stantial

ally the only appropriate statutory
this'standards are to be found in'Sec-

forgotten,

number

Senator

turned

DRY

criticism which, I believe, can
positive

done in the

disgruntled constituent who, after
having been reminded of everything the Senator had done: for

I
serves over

result,

by
saving banks' more than $11 billion of local mortgage loans made
during the postwar period recedes
into
the
background. • This
is
much

Dry Dock Savings Bank has paid dividends at every interest period since its
founding, at the highest rate consistent with safety. That record, the assets of
over 600 million dollars, the
helpful extra services, and the five convenient

elsewhere

tend

vast

financed

FOR 111 YEARS DEPOSITORS HAVE BEEN SAYING

and

with the

good work

local

offices

And it

but be grateiul

hglp

spect

City.

taining and strengthening the ade¬
quacy
of
their
surplus,
which
of the serves as a cushion of safety for
the depositors' funds.
We would

prop¬

State; the

remaining five banks ranged from

XvXvX'-x'"'*:

possi-

°tf
anJcJ namely, savings bank mergers. So
'f°-10« l ?y 5L far, mergers and merger proposals
savings banks 411-.involving savings banks have not
banks

with maintaining
adequate sur¬
plus,, and which by the soundness
of their operations contribute to
over-all stability and confidence

dence to the

survey.

random

welfare

and

economy

Thursday, October 29, 1959

affirmative and demonstrable evi¬

avoided?

State o£ New Y?rk
extendinS
credit ior local housln£ PWPOses,
a contribution for which many ol
the residents o£ the state cannot

might ask, were the
savings banks omitted on

placed

bilities for your consideration. For
example, might it not be desirable
to set up some sort of central

one

state.

oriahmllv presented
originally presented.

standing

v!yX'X<vXv/>;;'Xv!v!
::xv::x xtfx<-x

don t want to

million of FHA and VA loans out¬

,✓

XvXvXvXx:::^;;;::!;:;:;:

this

can

would like to suggest, two

the

undoubfedW othS

are

shortcomings

Pn
10

s
=■< l

;<•

/
p

Mms- ;

Avoiding Charges
How

vtmnoifio

yi
i

' "

:x*:v:<::vx:.xx-x*

' --

mm '■

>v
-

;

the

un¬

mortgage

to determine its validity.

Hardly.

v./..

savings bankers
at the same time adopt a standing
policy on local VA and FHA
mortgage lending which does not
serve
the -best interests of the
borrowing public of this state.

issue

whether

some

|pk,

significant

involved
as
to
demands
are in fact being met, I asked the
research people in my department
to analyze this evidence in order
derlying

other 10

m -

same

ment loans out-of-state.

Well,

wxm

the

were

public

of this state, some

New

better serve

the needs of the depositing

the

order

powers

You may be interested in cer- clearing exchange to which inforpeople of this state deserve the tain of the
things I learned about mation on such loan requests can
highest possible return on their
these
figures.
For
example,
]>be channeled, thereby bringing it
savings commensurate with safe
understand that our research di- immediately to the attention of
and sound banking practices and
vision found that when different other savings banks < which may
the avoidence of harmful and de¬
replies were received on different be in a position to grant such
structive
competition.
I should
calls to the same savings bank, loans? Alternatively, might it pot
also
add that despite anything
the institutions Were classified ac- be desirable to set aside some inanyone may or carl do, the people
cording to their least1 favorable vestible funds, either as individual
of this state and every other state
reaction to the loan request.
In institutions or jointly on a pooled
will demand and will receive a
addition, several banks classified basis through your Association or
fair rate of
return on invested
as making no VA or
FHA mort- other
central
organization,
in
capital and on deposits as long
gage loans are institutions which
order to take care of those local
as
our
economy,
embodies the
do not make such loans either in requests for mortgage loans which
spirit
of free enterprise.
And
New York State or out-of-state, am
nerhaps now being turned
finally, we must take cognizance
since they specialize in conven- away?
of the fact
that savings banks
tional loans, almost all of which
Let;
me
stress
again that the
have done more in the way of
are on New York properties. Also,
record of financing the tremenmaking mortgage loans on prop¬
the requests made of the savings dous amount of residential conerties in New York State than .all
banks for mortgage loans referred,.
struction in this state is one to be
other financial institutions in the
for
some
odd
reason,
to Long proud of> u j seem to be focusing
state put together.
Island properties only. Hence, it attention on a relatively small
Yet, at one of the meetings, it
was
assumed that savings banks
part of the over-all picture, it is
was stated that 22
savings banks
not willing to lend on such propnot beCause I have overlooked the
in New York City were, at the
present time, making no local VA er..11^s wouJd automatically not be positive achievements of our savwilling to lend on properties anyand FHA mortgages under any
ing 5anks
It is rather because
where else m New York State.
this is
the area in which such
conditions, although they were at
Furthermore
some
banks
make
institutions have come in for an
the same time making VA and
in-state FHA but not in-state_VA
inorc|inate amount of criticism. It
FHA mortgages to the residents of
other states.
Another 16 savings j^aris or vice versa, although the is a type of m.adviseA criticism
data had been presented so as to
banks were said to make local
wbich
tends
to
minimize your
leave
the
impression
that such most
VA and FHA mortgages only to
significant contribution to

analysis and study of this matter
reveals that such a charge com¬
a

in
in

to encourage savings
financial institutions. And

passing let me state that I do not
believe the people of this state
are second-class citizens who de¬
serve a lower dividend
rate. On
the contrary, I believe that the

pletely disregards
significant facts.

greater

mean

our

of their out-of-

result

dividends to
depositors in New York, thereby

often

siphoning funds out of New York
State

Banking

In Sayings

savings

four

only

banks contacted in New York City

are

many

profitable avenues of
In

that

passing, I should
our Deoartment

considering

of fostering

ways

and

the formation

savings banks, and it is hoped

that

the

near

future

will

Volume

190

Number 5894

...

The Commercial and Financial
Chronicle

(1803)
have

.constructive
tions to offer.
soma

sugges-

by other types of

tions.

Diverse Cost Experience
Thora .ic

The

nnmnntif

onrpfr V thnnrrht

Board

Bankintr

rate

ceilings,

institu¬
r

ings,

Department

improve the
position of
We have not yet

earn¬

able.

size.

Even

the larger banks, we found
size did not neces-

among

that

their

greater

-sarily
:and

ensure

better

earnings

record.

expense
•,4

fpu-

Vi.

management

harder than

even

some

tional

strive

are

deposit

objective,

they may
find, the solution to

•their

this
of

some

competitive problems.

.therefore cannot in all cases accept, without making our own independent analysis, the claim that
may be the only way to

merger

achieve

needed

to stress this
as

can

I wish
strongly

economy.

point just

since this is

nartieularlv

:hnpoilSnt wnsi^r^ioS
'

onfy it

are

In short

convinced

that

rate.

their

and

out¬

arrangement,

under

rules and regulations, with
higher dividend rate,
..

„

and

Los Angeles School

;

standing service to the public .at
a

reasonable cost.

...

....

^Address by Mr. Clark before the Sav¬

ings

Bank

Association

the

New

York, aboard the S.S.
sterdam, Oct. 17, 1959.

State

Nieuw

Am¬

Bank

Edwards & Hanly Meeting

8:30 p.m., as part of the free Com¬

munity Service Program.
The meeting will be conducted
by Robert W. Terry, Partner, Re¬

search^ Department,
Monahan

and

Resident

Stephen T.
W.
Hanly,

Peter

Managers.

Information

of assistance in

evaluating present
holdings and possible future in¬

discussion. A question and
period will follow. \

meeting

America

with

merged

answer

open

the

Henry Arden and
seph L. Gitterman, Jr., both mem¬
of the New

York

Chase

S.A.

Oct. 27

funds

and

Manhattan

Bank

Trust

Company.

The

New York

Bank

Manhattan

premium

and

Bankers

America-Chase

Bank

paid

group

LOS

securities business from, offices at
634

South

district

the

3.70%.

1983.

are

approximately

were

used

the

Vice-President

bond

for various

Angeles

urban

40%
in

the

BROOKLINE, Mass. — Wolf red
Freeman is engaging in a securi¬

About

west.

valuation

assessed

ties

business

and

manages

individual

floor

brokers.

the

$650

N.T.

S.A.

Named

have bought

Secretary

Sons Inc.,

1625 Eye St., North¬

than

California

west, has appointed Ralph C. Davis

state

Secretary of the firm.

Stdui 4?' .^L1^ supervision to
strengthen their competitive posi-

tlon 111 the contcst for the savers'
dollar> Howevcr' wc believe that
this can only P™!**1? be done if

is^a facT the only poss! ble ^
"solution would
be willing to
meiaer

Drm^ly ECtup0n SUch
p

•

a mCrfi0r
"

■

Finally, the importance of
taming

competitive

main-

banking

maintain

where

and

necessary,
even
to
strengthen
their capital position. I have in
mind not only the statutory additions which must be made to

sirr-

structure and the avoidance of any

pius, but also those which should

significant

reduction

,tihn due toquires
no-

competiprobably re-

merger

elaboration.

Every

would of course
be carefully scrutinized with this

.merger "proposal

objective iii mind.
These

major
:

then

criteria,

are

some

which

in appraising whether

use

ger would further
of

ests

the

the-

would

mer-

the best inter-

public

the

and

de-

positor.

made

Before

say a

concluding, I would like
few-words about another

aspect

the

competitive probby
savings
banks,
Many will recall that at the time

lems
;

Competition

faced--

margin cxdeposit growth,

objectives

attained would

Organized and wholly owned by the Mutual Savings Banlts of

can

look with favor

Jieiv York State, Savings Banks Trust Company is the

the adoption of such a plan
by any particular institution.

upon

Another

giving

issue to which

is,

ings banks' bank, serving them and their agencies exclusively

tee;

should devise and perfect
possible mechanism

would

degree

afford

;

as commercial banks in times of
need may turn to the Federal Rc-

serve, or

Directors

savings and loan associa¬

JOHN

fabulous fives,
the journalistic reference to the tremendous-

that there

were

many

depositors
on
the
bank
drawing out deposits that

floor

moment
run

the bank.

aggerated,
me

course,

for
was

thought there

While this may be

some

upon

always

"soft-sell"

slightly

ex-

have made known
occasion

and,
of
utilizing the

approach,

that

they

rhave been feeling the effects of
the

stepped-up

pace

competi-

tion from many different
for the savers' dollars.

; petition has

CHARLES

that

sources

Such

com-

very

careful

are

President,

constantly

alert

to protect and improve their

comof

the positive and dynamic program

rates

LYON

President, Dry Dock Savings Bank
New York City
;.
,

KILGORE MACFARLANE. JR.

President, Buffalo Savings Bank
-

Buffalo, N. Y.
RALPH J. MILLS

Eastchester Savings

Bank

president, Yonkers Savings Bank
Yonkers, N. Y.

GEORGE O.

Chairman

and

F. LEWIS

WILLIAM

CARSON

The Community Savings Bank
Rochester, N. Y.

Vernon, N.

President

The Greenwich Savings Bank,

NODYNE

President, East River Savings Bank

New York City

THOMAS H. HAWKS

Rochester,

EDWARD J.

Rochester Savings Bank
N.

PIERCE

President, Harlem Savings Bank

Y.
•

WALTER J.

HESS

President, Ridgewood Savings Bank

New York City

ADAM

SCHNEIDER. JR.

Ridgewood, N. Y.
JAMES

HUGHES, JR.
President, The Savings Bank of Utica

Utica.
AUGUST

Roosevelt Savings Bank
City of New York, Brooklyn, N. Y.

President,

EARL

President

and

Savings Banks Trust Company-

New York

City

Executive

JOHNSON

Cohoes Savings Bank,

the

Board

New York City

WILLIAM A. SCOTT

President,

"Chairman

the

growth

of business

Vice-President

and

Treasurer

Cohoes, N. Y.

CHARLES D. SWAYZE

The, Dime Savings Bank of Brooklyn

Chairman and President

Brooklyn, N. Y.

Middletown Savings Bank<

Mlddletown, N. Y.

and

come from

government

savings

by the stock market

and-

contribution

they

continue

this

program

maintain

and

the

Chairman

The Bowery Savings Bank,

IHLEFELD

SCHWULST

of Governor Rockefeller to stimu-

late

Bank

The Wllliamsburgh Savings

President, Fulton Savings Bank
N. Y.
'

HARKNESS

GEORGE C.

j am certain many are aware

numerous
industry in this state for the benedirectionsi including the competi- fit of the
people of this state. The
tion provided by this new Treassavings bankers of New York
ury issue, by the more attractive State can
make an immeasurable

-bonds,

Mount
EARL

KAISER

Fulton,

EDWARDS

President,

the problems of our institutions
and are constantly seeking ways

RAMON

Board

President, Long Island City Savings Bank
Long Island City, N. Y.
JOHN A.

con-

Nevertheless, whether it is by
any of the suggestions I have out¬
lined or any variation of them,
savings bankers may rest assured

the

CONWAY

JAMES J.

sideration.

that

President,

their

warrants

•of Rochester,

ly successful 5% note issue by the
U. S. Treasury.
One newspaper final decision can be
reached, but
reported that" one bank officer re- we do believe that it is an idea
marked

Chairman

President,

Brooklyn, N. Y.

Onondaga County Savings Bank
Syracuse, NV Y.

mortgage portfolio,
Here again, many of the details
need to be developed before
any

JOSEPH

PERRIN L. BABCOCK

to permit savings banks to borrow

against

ADIKES

President, Jamaica Savings Bank
Jamaica, N. Y.

change, some- tral agency or enlarging and asdramatically. I doubt sisting an existing
facility in order

that I need call the attention to

of interest to the Savings Banks Association and its

highest
to
savings
arises, j,ust

circumstances

the

research body and clearing house for information

the

liquidity

banks when the need

Banking Board imposed its tions to the Federal Home Loan
ceiling, _it stated it would review Banks.
its
decision at each subsequent
jn orcjer to ensure
that such
meeting in order to ensure that needed
liquidity can berachieved
the regulation continues to be reawhen required, it is desirable and
sonable
and - accurately
reflects even
essential
to
explore
the
current conditions.
We all know
feasibility of creating some cen;tunes quite

as a

members.

that

also

matters

best

which

depositary, correspondent, investment consultant and trus¬

proposal by certain savings bankers
relating to the liquidity of
savings banks. Now is the time
we

sav¬

are

consideration

some

the

Increasing

order

pected future
Only if these

that

Meeting

SAVINGS BANKS
14 WALL

WASHINGTON, D. C.—O'Connor

underwriting accounts it

incorporated

America

millidn

under the firm

of Freeman & Company.

name

Bank

offices

fronr

Addington Road

City of Los Angeles and
82%

ibout

Forms Freeman Co.

County, the largest
in

area

of the

the

valuation

Wagenseller &

•.

flood control

assessed

Inc. ;with which John S.
Weller was also associated.
•*

Durst,

will

sale

purposes. The Los Angeles County
Flood
Control
includes
District

of the

S: •'

John

reoffered

VVA

Proceeds
be

The bonds

City.

active

Spring "Street.; Officers

Stevens

Weller, President;
Weller-, Vice-President,
Treasurer: and Assistant- Secretary;
to investors to yield from 2.90%,
andf Stevens Weller; Jr., Secretary.
out to a dollar price of par, > ac¬
Stevens Weller was formerly
cording to maturity May 1,1961to

Stock Ex¬

been

Calif. —The
is conducting a

ANGELES,

Weller Company

$117,739
for
the
straight 3%% bonds, a dollar bid
of 100.557, or a,net interest cost

fices at 40 Wall Street, New York

have

civic improvements
projects required by
growing economy.

Weller Company
in

change, will form the partnership
of Arden & Gitterman, with of¬
Both

for

public

From the Banking Department s
standpoint, I must stress that it is
always necessary for us to balance
a number of different objectives
P13?,' to s01me,P
in
^hct with each othcr.+We ccrIP y wish to help all the msti-

District. The merged syndicate in¬
The
First
National City

cluded

99%

To Form Arden-Gitterman

bers

syndicate to purchase the
$21,150,000 bond issue of the Los
Angeles
County 1 Flood ; Control

Los

public.

On Nov.

N.T.

months.

the state's

vestments will be the basis of the

This

underwriting syndicate

municipal, bonds in the past
The
bank and its
underwriting syndicates, through
a
policy of bidding on virtually
all California, municipal bond is¬
sues, provide
an
assured source
12-

Bank

Another

90-day notice time

pr0per

steps may be necessary to achieve
this

premium

possibility is

now

,doing, to keep expenses down. If
they proceed to take whatever

way

the bank, rather than the addi-

they

be wo^d he free to do this,
:bld: K1 .sucb a,2 evenL his sayings
^Y.0ldd ia c
earn
? sl<;.
dividend rate over the period of
tbe funds actually remained

This points to the need
cases
for

operations

expense

times

their, high stand-r

term

m£ the advisability of permitting
ratios.
However, we-also diseov- the issuance of savings certificates
ered that" there was
widespread ?f ^ve year maturities, under the
diversity iru operating perform- *erms
of which the depositor
ance
among
savings
banks
of f.ould
receive a dividend rate
;
varying size.
In fact, there were higher than the basic rate paid
A riumber of cases where
compar- °n savings accounts.
Should the
atively small
institutions
were
depositor wish to withdrew his
able to outperform
savings banks >
,?
re the five years were
several

better

conduct, the efficiency of.

methods

averages, the smaller institutions
generally had a lower net operating income- than the larger banks

higher

However, we are studying
HUNTINGTON, N. Y.—Edwards &
of
encouraging longer
Hanly, members New York Stock
savings funds, thereby con¬
Exchange, will hold an investors
tributing to the stability of your
information meeting in the new
dVnos^t stmcture'
Huntington office, 425 New York
^
V,
For example, we arc considcr- Avenue, on Wednesday, Nov. 4 at

and capital posi¬
institutions. We found
that in general, based on
over-all
our

their

deavoring to sec what might be

expenses

mainly

strive

ards of

rp^mffen savings banks..
Department Come to any de£inite c<)uclusions

careful. studies of the

due

Banking

mil
made

tions of

"saving*

•••'; :

^T «? -done in order to help
Vs; overall' -competitive

-ni

the

has not been unaware of
these developments. We are en-

dl™
pSS

course

wt.armtw

+>i^

latAH

TRUST COMPANY

STREET, NEW YORK, N. Y.

•

The Commercial and Financial Chronicle

(1804)

FN MA Notes

Being Presently
Federal

STOCKS

offered

Oct.

Market Op¬

Our

This
this

those

According to FNMA President
J. Stanley Baughman the issue to
be dated Nov. 10, 1959, will ma¬
ture on May 10, 1960, and will
5Vs %

clebentures

interest

will

nominations

The

rate.

issued

in de¬

$5,000,
$50,000 and $100,000.

$10,000,

The

offering
is
being
through
FNMA's
fiscal

made

agent,

John H.

Claiborne, Jr., 149 Broad¬
New York, assisted by a

way,

nation-wide selling group of
ognized security dealers.
•
'

rec¬
<

Net

proceeds will
$150,000,000

«month, 3.70% debentures, dated
Aug. 10, 1959, that will mature
on
Nov. 10,
1959, and to repay
borrowings from the U. S. Treas¬
ury used for the Secondary Mar¬
ket Operations. The maturing de¬
bentures may be redeemed at any
or branch.

down to

are

leading

list are:

when
some

banks among

trade is

York City.

important mergers are announced that there may well
doubt about others being effected.

;; .''..v.

the banks in their bids for small accounts. This

offering

of $240,000,000 Fedoral Home Loan Banks 5%% noncallable
JSTov.

consolidated

16,

1960

1959

was

and

made

dated

notes

due

May

16,

Oct. 28 by the
Home
Loan
Board

Federal

through
Everett
Smith,
Fiscal
Agent of the Banks, and a group
■of

securities

,are

The

Net

from

proceeds
will

funds

member

Home

Loan

the

meet

sale

provide

the

additional

institutions

Bank

demand

System to

for

competition for business, large
At

small,

earlier, and they gave
profitable calendar year

year

very

issuance

upon

ended with

Sept. 30,

Chemical

New

York...

Forms Inv. Co. of Md.

First

Street

under

Investment

United States

Securities

Manufacturers

Where

AND

BANK

GRIND LAYS

LIMITED

Amalgamating National Bank of India Ltd.
and Grindlays Bank Ltd.
>

Head

there

Trust

were

data for the earlier period are on

London

•

;

Branches

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.I

Trastee Dcpts.: 13 St. James's Sq.; Govt.
H4., Nairobi; Ins. Dept.: 54 Parliament
84.; Travel Dept.: 13 St. James's Sq.; Incame Tax Depts.:
54 Parliament St. tc
13 St. James's

1.01

OGANDA,

ZANZIBAR

y—-

Branches

MEDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,

I !

NORTHERN AND SOUTHERN

are

1.25

4.31

NEW YORK
CITY BANKS

1.18

Request

Laird, Bissell 8 Meeds
Members New York Stock
Exchange
Members American Stock
Exchange
18§

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell

Teletype NY 1-1248-49

Specialists in Bank Stocks

Hitler,""— just

and ruthless
military way.

been

visit

5.21

16.18-

19.67

1.44

4.56

5.47

United

Obligations

political
Other honds,

which

with

reflect

true

this

tures

means

than

261,910,88

assets

other

••

premises—!.

180,468.86
216,654.02

$51,947,464.19

and

LIABILITIES

Demand

porations
Time

—

deposits of individuals,

partnerships,

and

rations

United

States

and

well

ical

national

very

dividend.

capital

•

19,190,069.03

banks and

companies

trust
____.

675,297.47

Other deposits (certified and
officers'

DEPOSITS—r__ $47,948,538.17

liabilities

TOTAL

CAPITAL

TOTAL

ACCOUNTS

$1,000,000.00
1,000.000.00

——____

1,705,883.62
1,320.00

.a.——

CAPITAL

$3,707,203.62

ACCOUNTS

TOTAL LIABILITIES

bring

bank's

stock with

AND

ACCOUNTS—

CAPITAL

iThis

291,722.40

$48,240,260.57

LIABILITIES

Capital t

their

-597,287-63

checks, etc.- *

TOTAL

Other

labor leaders could

our

1,293,820.62

—

subdivisions

Deposits of

make

which

4,323,144.26
States

Deposits of States and polit¬

great respon¬

from

•

corpo¬

United

Government

can

their em¬
ployers and all consumers, might
greatly suffer. U. S. labor is now
""pricing itself" out of its market
membership,

"•'
$21,868,919.16

——

Deposits

should

deposits of individ¬

uals, partnerships, and cor-

fix-

and

owned

banking

that American

•

$51,947,464.19

capital consists of commdn
par value of $1,000,000.00.

total

depression

dividend.

because

-t

20,240,809.72
"-

—

estate

Real

Reserves

comparable,

2,435,559.03
de-~-~
L..
481,977.01

and

furniture

none;

about

stock

21,301,846,,46

ing-$2,420.08 overdrafts)!-

They could easily bring
much unemployment in the

about-

not

;
$0,828,238.21

Banking premises owned,

week.

The above

Chemical and New York Trust, and

■'

Loans and discounts (includ-

This is probably
Russia, which I

labor leaders have

Guaranty.

periods

notes,

bentures

2.80

City Trust Co.

and

of
States
subdivisions

2.62

5.83

two

items

•

sibility.

5.50

the

other

Government *-

States

3.75

1.20

adjusted

Law

compa-

collection—--^-

3.58

stock

Banking

obligations, direct and
guaranteed——;

Adolf

cash

and

process of

HEarlier data

with

trust

Surplus fund
Undivided profits

5.46

^Earnings for
change v'a, riffh««.

and

0.73

adjusted to reflect %%

1959,
made

pursuant

China

compete with us.

4.54

merger of

balances

aiices,

textiles, steel, and other materials
needed
for
exporting
goods to

4.49

5.25 "

Co., Inc., and

the

call

Banks

York.

New

is now
and other

machines

3.59

4.02

*Pro forma, reflecting the

provisions

State

with'

Superintendent

the

October

nies, including reserve bal-

living in the

if these 400,000,000 workers

MEMORANDA

serious

consequences.

Assets

pledged

assigned to

liabilities

secure

What I Learn About Germany

other

and

for

above

are

,$12,476,60843

purposes

**Data

does

not

include

Clinton

Trust

Co.

prior

merger

Germany

1959.
-

Bulletin

also

1.17

Morgan &

the

States,

have

4.58

1.51

♦Earlier data

accordance

ASSETS-

visualize what could happen to us

17.34

1.08

the

making ma¬
products to
export to us in the United States.
If, however, we raise of tariffs
so
that she cannot export to us,
Germany will export machinery
to other nations—especially China.

1959

1.15

J. P.

business

be sold tractors to farm with and

RHODESIA

Quarterly Earnings
Comparison

York, New York, at

New

getting Congress to raise,
This would not only

chinery

oper¬

0.94

t Includes First National

1
*

TOTAL ASSETS

$Morgan

Guai

Germany

Manufacturers

Broadway,

Other

1958

1.00

CONDITION
'

•

tariffs.,'

Better Watch

19.79-

0.63

in:

published

pro¬

the

Cash,,

was

4.72

0.83

SOMALILAND

PROTECTORATE

products out of our coun¬

powerful

3.42

—

Sq.

and

instalment buying

little

"economic

$6.31

•

solve

Company

sell

another "Hitler" who Could be an

$5.59

0.96

Underwriters Trust

but might cause
Germany to "gang up" <ivith Rus¬
sia, Japan, and China in an eco¬
nomic war.
Germany may have

1.14

rk„_

mernkers to the Government in:
ADEN, KENYA,
l

$1.71

desiring

Hence, they are

prices.

industrious

United

12 Months to Sept. 30

$1.22

§Bank oi
**Chase

REPORT

labor

its

has

Germany

our

4.11

Bankers

sense

•'

outstanding showing.

1959

some

Country Has Labor Unions

German

2,213,000
65,640,000
15,000,000
14,566,000
22,877,000
41,168,000
2,915,000

Third Quarter

studying the map of
will see that Mr. K. has

Europe

banks

$192,776,000 for the
that closing on Sept. 30

1958

Rogen W. Babson

American labor will try to keep

Office:

54 PARLIAMENT

by dividing the great City of Ber-

very

Anyone

Germany.

4.682.000

Operating Earnings

What About East Berlin?

ductive, due to longer hours and
a
lower cost of living.
There is

ating earnings for the 1959 third quarter and the 12 months ended
Sept. 30, 1959, both periods compared with a year earlier.

BISHOPSGATE, LONDON, E.C.S

stock market

If this hap¬
the blame will be. laid on
doorsteps of certain selfish

the

increase the cost of

showing, the following

end, with

the present crazy situation caused

were

this year, for an increase of
nearly 52%, an
Now turning to the current

intensity(that
prosperity to; a

our

the

at lower

the above banks the
forma basis, reflecting the

pro

The totals, in rounded figures
twelve months; $292,454,000 for

economic

and real estate crash.

unions, but practically no strikes.
union leaders and employers

involving

mergers

bring

sudden

unite to make better goods to

60,305,000
38,060,000

14,663,000
26,683,000
2,005,000

mergers.

earlier
NATIONAL

Trust

Morgan Guaranty

firm

Company of Maryland. He was
formerly with Maryland Securities
Co., Inc.

City

Irving Trust

225 East

the

National

Hanover Bank

BALTIMORE, Md.—Arthur Lippmann
is conducting a securities

either

crush

of unparalleled

war

could
;

could

the U. S. in

The

$25,429,000

2,614,000
39,360,000
28,014,000
1,270,000
39,800,000
10,290,000
8,850,000

Russia

try

Bank of New .YorkJl.r.
Chase Manhattan

the

raw materials
efficient labor. The

combined

two

Now for an answer to

Even

1959

$16,926,000

machines while

and

China supplied the

the

Every

1954, and the like period through Sept. 30,

Empire Trust

Redwood

Operating: Earnings 12 Months to Sept. 30

notes.

business from offices

it is today.

Trust

"know-how"

■r*'

Bankers

and
China
should work
together, Germany supplying the
many

anywhere

world.

$i,-

i
if Ger¬

occur

question frequently asked mc: Is
the United States facing serious
unemployment?
;

time when,

earnings have been at as good an improving rate as has been the
case.
To bring out the improvement over the recent six
years, let
us see what earnings
have done for the two 12 months' periods
*1959.

easily

and cheap but

—nothing like

realization among investors that bank

coud

labor leaders.

number of shares outstanding in the 1959 period com¬
pared with the 1958 12 months through the rights issue.
There is not too broad

This

en-

"sea"

else

us every

1054

776,280,000

the United

Communism

increased

mortgage

Home Loan Banks will total

£6

keen

covers

force

to our detriment.

island floating

justification for expecting
earnings. The one exception is
Bank of New York, and its showing was distorted because of the
a

Outstanding indebtedness of tjie

aiame

was as

was

bhina

Mr.

would

course

powers, on a par with
States and Russia.

the

money.
»

never

former

pens,

September 30 quarter-date the 12 months' operating '
earnings figures were, in all cases excepting one, better than those

notes

priced at 100%.

notes

the

dealers.

that there

the

a;
free economic

small

Fed. Home Banks

tell

that

terri¬

tory.

checking accounts, small loan accounts, credit-card arrangements
with all manner of nuances, etc. With a single exception, the six'
largest New York City banks are going after these small "retail." >
accounts in as aggressive a manner as should satisfy the quarters
that are so vociferous over the question of competition.
Indeed,
bank officials will

trolled

•

among

the

example,

Federal Reserve Bank

Offer Note Issue

for

d i.f-

Russian-con-

banks
;

they

responsibilities

heavy

instead of adopting measures to

tireiysur-'
rounded
by

such keen competition

seen

but

tion, but rather for more. Today we have four banks whose deposit
size exceeds $3 billion, and two others which report deposits of over"
They are bunched so far as going after the economy's
largest borrowers is concerned. It will be recalled that a bank's-,
(some
'

the

ferent nations,

$21/2 billion.

lending power is based on its capital and surplus
capital, surplus and undivided profits).

fears,

between

compeii-

writing - this in
Berlin, one should not judge Ger¬
many
by Berlin since it is an
independent and separate com¬
munity of its
own. Not only Is
it V. divided"

such as to permit it at least to make the going more
difficult, if not to give it a veto power on the ground that the con¬
centration of power violates the Clayton or the Sherman anti-trust 7
Actually, the recent mergers did not make for less

warned

unemployment fears stemming from increased

Germany to trade and, thus, help build up Red
Although

merger cases,

time have

are

drive for higher tariffs

Babson

Indeed, the newspaper accounts of the recent Chemical Corn.

leaders

keep American labor from "pricing itself' out of its markets.

Exchange-New York Trust consolidation were tinged with sugges¬
tions that the Department.of Justice be given greater latitude in;,

Furthermore, at

labor

bear if their reaction to

change and New York Trust; City and First National of New York;
Morgan and Guaranty. This roster, of course, omits smaller acqui¬
sitions by the large New York banks. Whether or not this trend
will continue is anybody's guess. So much opposition now develops

three-

Bank Stocks

—

Recent mergers that have reduced our
Chase and Bank of Manhattan; Chemical and Corn Ex¬
New

laws.

used

Week

quarter-date

Tedeem

Great Responsibility

By Roger W. Babson

cix-month Secondary
erations debentures.

bear

Have

BY ARTHUR B. WALLACE

National

Mortgage
publicly
$200,000,000 issue of

Association

Thursday, October 29, 1959

BANK AND INSURANCE American Labor Leaders

Offered
The

Germans

Thomas Mann Co. Formed
Thomas W. Mann and Co., Inc. is
engaging in a securities business
from offices at 2
Broadway, New
York

City.

President

Thomas

and

Treasurer

firm, in the past

was

erick L. Free & Co.

Mann,
of

the

with Fred¬

have
given up" its ambition to be the
leading power of Europe.
The

M. D. Truesdale

Melville D. Truesdale passed away
Oct. 20 at the age of 68 following
a

long illness. Mr. Truesdale prior

to his

retirement, had been

broker and at

one

time

was

stock

Assist¬

ant Vice-President of the Central

Hanover Bank & Trust Company.

not

may

yet

believe that France

Loans

stantly

desire

their

so-called

for

ease

security.- Italy is
being
undermined

and

Communists influences., The three

Scandinavian
heretofore
now

forecast

one

countries

commented

that

the

have

upon.

Germany will
world's
greatest

of reserves..

after deduction
of

I,
of

•

199,571.58

■

Securities ak shown above

and

con¬

shown

after deduction

England have reached their peaks
due

are

of reserves

160,041.73

—

KENNETH

LANDPARE,

Treasurer

the above-named institution, hereby cer¬

tify that the above statement is true to the
best

knowledge and belief.
KENNETH W.

LANDFARE.

Correct—Attest:
CHRISTIAN
SUMNER

JOSEPH

W. KORELL)

FORD
B.

j Director

TAMNEYJ

Volume

190

Number 5894

The Commercial and Financial Chronicle

(1805)
lin between the Russians and

Allies.

With

Berlin in

the

willfully

center

trust.

of East

Germany, which was given
Russia, 'a person cannot now

enter

leave

permission

plane.

visa

except
by

had not

for

obliged

Berlin
Russia

time

By Hon. William P. Rogers,* Attorney General of the U. S.

circumstances.

westward

to
Hamburg
(one of
Germany's
largest cities)
and fly from there into Berlin.
/

What
one

believe

some

out

solution
it

will

satisfactory

World

Kv is

Premier.

not

War

allies

the

Germany,

come

long

Mr.

knows

that

started

were

only would

Britain,r

may

Ill

with¬

resort

now

U. S., Great
and i; all
the

against«: him," but also
China, which he fears most of all.
To

-v

summarize this

that I

say

point

about

labor

worry

leaders

column, let
at this

-United

our

than

Mr. K.

States

do /about

\ ■/'

•

require
'

Gas

behalf

lations

the

to. the

pletion

Administration

SEC

the

field

law

of ad¬

relationship

Attorneys uniformly report
;the, irivaluable aid given by
Commission investigators and at¬
torneys in the field and in your
on

General Counsel's

rity

e r

this

offered „an

issue,

against fraudulent

produce

offenders

excellent

results

will

this

drive against stock swindlers who
-prey on the investor public.

■

What

Rogers

about, the

the SEC will

had

since

1900

increased

and

that the

greatest change was the spread of

play

future?

That

vital and

panding role in the future
of

omv,

our

doubt.I

country

have

that

confident

ex-

econ-

this

stock—more than 25 times

new

is calculated to retire 84% of the
debentures prior to maturity.
.

Net

the

other
of

proceeds

from

the

sale

new

debentures, together with
funds including the proceeds

recent sale of preferred
stock,
will be used to complete payment
a

the

company's'1959

construc¬

tion

program, the repayment of
bank loans incurred for construc¬

tion, the purchase of securities

be issued by subsidiary companies
for their costs of
construction, and

for other corporate purposes. Con¬
struction expenditures of the
pany and

subsidiaries in

estimated

require

com¬

1959

are

$60,400,000

cash and the use of $17,800,000"of
material and equipment already

Commission,
lion

worth

almost $3ou bitlisted on the

-ana

Exchanges:

now

Almost

individuals'

registered with the

was

other

deception in the fu¬

lic

rest with all the

ra
-

Steps must

taken

people.
•;

/"J

elimi¬

shares from certain selling stock¬
holders. An additional 5,000 shares

being offered by the company
employees at $15.05 per
Any shares not so pur¬

are

its

share.

chased will

purchased by the

underwriters.
Net

own

12V2

million

stock

interest

in America's future, and these are
not marginal- or hedged accounts,

excessive

long delayed,

Administrative

business, therefore,
sacrificing
procedural
safeguards, must be made to move
with

sufficient

speed to meet the

needs of the time.
In

this

respect, the experience
handling
protracted
court litigation may be relevant.
Might not greater application, for
gained

re-evaluated

that

sure

which

will

sions.

There

•;

recent

have

suggestions

ordinated- and

conclu-

been-

many

how

effective

co¬

policy

50th
and

sells

year

diversified

products.

line

o£

Net sales of the company for the
six months ended Aug. 31, 1959,

$5,745,551, as compared to
$4,224,272 for the like period in
1958. Net earnings of the company
were

six months period ended
31, 1959 • totaled $349,611,
equivalent to 70 cents per share,

the

Aug.

while for the comparable period
instance, of the Federal pre-trial in 1958 net earnings totaled $186,practice help in. the process of 910, equivalent to 37 cents per
orderly and prompt administra¬ share.
tive adjudication?
Giving effect to the sale of tha
50,000 shares of common stock,
IV
capitalization of the company on
Agency rules must constantly
Aug. 31, 1959, was: $120,000 in 5%

they

our

Forms,
Inc.,
is observing its
Anniversary, manufactures

paper

swiftness.

to be heard, fairness to all parties
and
that the
resulting decision

have based

Business

this

business forms and other business

require a searching re-examination of some of the premises on
we

which

matic

law and of government regulation
may

Ennis

decision,

be based upon*
outmoded facts and assumptions.
The American economy is change
ing and moving forward with dra¬
may

without

f "

country

redemption price rang¬
much.—
ing from 105 V&%. A sinking fund

public

regulation

The SEC's Future

pany at a

The final administrative

ownership "among people of new, problems arise and as thouincomes." **'This
$25^000,000 of Northern Natural small
was,
of sands of new investors and new
Gas Company 5%%:
sinking fund course, a most' significant devel- businesses appear, the SEC will
opmentA Yet, in 1933, new issues successfully protect the public indebentures, due Nov. 1, 1979, at a
of corporate stock amounted to terest with the same resourcefulprice of 100%.
The debentures are not redeem¬ only about $400 million annually, ness, fairness, and integrity it has
and the value of all stock listed
always shown. '
able prior to Nov.
1, 1964-at a on the
Exchange was'only about
But what about the role of adlower interest- cost to the com¬
$34.'billion. '"
'
pany.
/_/> ministrative agencies generally?
Otherwise, they are - re¬
Last year/almost $10 billion of The entire field of
deemable at the option of the com¬
administrative
on

proceeds from the sale of
delay in adminis¬
the 50,000 shares will be used for
proceedings. Justice'
the company's continuing program
delayed is justice denied whether
the forum is an agency or a court. of expansion and modernization.

SEC,vsaid v
b

who

trative

personal cooperation in the
accelerated enforcement program

middle

the" total

people

young

ture. In the final analysis,
though,
no one should
forget that the pub¬

nate

for grand jury presentation

cases

member "of

the

Forms Stock Sold

and trial. I am confident that this

invest¬

Ennis Business

secu-;/

ments.-/-',/..
Speaking in
the.

juve¬

any

such

the, preparation of these difficult

impartial reg- /■
ulation in the/'
field

office, not only
in the investigation, but also in

delin¬

110

...

For example, he asks whether

com-.* States

of,,

y.ears

*'tenfold"

.Oct.

the

close and harmonious

suedes sf ul,::'
effective
and >

n u m

associates

administrative

I
am
sure,
the American which we in the Department enpublic,! extend: sincere congratu- joy:.with the Commission. United

Co.,: Inc: and

within

and,

stockholders

Blyth &

future
areas

were

watched—with admiration for the

greater application of the Federal pre-trial practice would
help the
v
process of orderly and prompt administrative adjudication.

that

Company

the

searching re-examination.

1930's, Justice
Douglas, .then

Northern' ~N atural

about

there

underwriting group headed by
Kidder, Peabody & Co. on Oct. 23
offered 212,490 shares of common
learning of the contestants—and
stock (par $2.50) of Ennis Business
who now must be doing a lot of
Forms, Inc. at $16.25 per share.
wondering.
This offering was oversubscribed
Certainly there should be full; and the books closed.
accountability and thereafterOf the 212,490 shares, the un¬
every effort made by the govern¬
derwriters purchased 45,000 share»
ment and by the networks to safe¬
from
the
company
and
167,493
guard against this or
lions

ministrative law and government regulation which he
suggests may

be'settled

WarIII

sometime, but not
World

manner

ultimatums

any

war.

will

knows, but the people of

now

Berlin
in

the

Concerned

generally, Mr. Rogers examines four

West

public
lot

nile responsible for these scandals.
there were undoubtedly mil¬

Attorney General congratulates the 25 year old SEC for its
accomplishments and initiative in shaping policies to meet
changing

get

Germany, I was
from Copenhagen

the

juvenile

Yet

exploit
adults

about

quents—but

air¬

East

worrying

full

guarantee

determined

merits, free of
influence.

instance

every

solely

bias

There

opportunity

stock

the

same

with

value

par

of $2.53

Now Corporation

public

s|iare.

per

improper

should

the

serial debentures maturing in 1963,
and
550,000 shares of common

LONG BRANCH,

N. J.—The In¬
determination, planning, speed or confidence in the integrity and vestment business of I.
Georga
processing, and fairness of adju- fairness of administrative- pro¬ Weston &
Sons, 210 Broadway, ia>
dipation might better be achieved, ceedings as court proceedings now
being continued :as a corporation.
rulemaker, policeman and court This is neither the time nor .the
Officers
enjoy.
••
are
I.
\
V
George W&ston,
on
the financial' "beat,"
it has place to give any extended conIn
all of these efforts,
I am President; Robert Weston, Viceprovided investor confidence in sideration
to ' such
suggestions, convinced it is the agencies them¬ President;
and
Arthur
Weston,
the integrity and honesty of our
There is much in them,
certainly, selves which should carry the Secretary-Treasurer.
capital
markets.
Without
such that
merits study.
Permit me to brunt of shaping policies to meet
confidence our nation could hot
fnake four brief comments,
their
ownparticular
circum¬
have prospered and grown.
Wright, Clark & Senkel
The
stances.
Many are presently en¬
financing of industry, the under¬
GRAHAM, Tex.—Wright, Clark &
Suggests Four Areas of Inquiry
gaged in this major work.
And,
writing of ^pension plans, the se¬
here I want to single out the SEC Senkel, Inc. is engaging in a se¬
1
curity of insurance policies, and
curities business from offices in
In this

phenomenal growth, SEC
has played an important role. As

Administrative law must not in

the endowment of universities
all of these and much more de-

for the fine progress

There

can

it has made.

doubt that the

the

Meacham

Building.

Officers

the .years ahead develop blindly
are Thomas A. Wright, Sr., Presi¬
administrative process is an indis¬
paid for.
"
'*
pend in the last analysis upon and haphazardly.
In fashioning
dent; Wesley Senkel and Thomas
Northern Natural, Gas Co., di¬ public confidence and participa- new administrative policies, we pensable adjunct to modern gov¬ A.
Wright, Jr., Vice-Presidents;
The SEC has played a
tion in stock ownership. In build- must recognize that each agency ernment.
rectly and through subsidiaries,
and William E. Bell, Secretarymajor and pioneering role in pro¬
owns,
operates... and maintains a ing and maintaining this confi- has different functions and purTreasurer.
pipeline system of approximately
11,967 miles of main, lateral, dis¬
tribution
and
gathering
lines
through which it transmits natural
gas
purchased principally from
the Texas

panhandle, Hugoton and

Hansford,
and

the

Texas,

area

Permian

in." Kansas,

gas

fields

points

Basin

Nebraska, Iowa,

Min¬

nesota and South Dakota.
12

J959,

the

operating

company

910,548

months

and

ended

revenues

amounted
net

June

income

$146,-

$16-

vital

economy

justly

proud

the

health

the SEC can be
of the part it has

1^—

played.-—"-—.■

The
agency has reached that
point in its life where it is accepted and respected by the industry it regulates, and opposition
to

its

basic

tenets

disappeared.
SEC's

for the

30,

dence

free

life

This
more

has

long since

makes

the

pleasant,

but
there is no reason to suppose that
lts duties»!will be any
less demanding.
There is much to be
done in the years ahead. There is

330,953, compared with operating little doubt in
my mind that durrevenues
of $138,627,831
and net
ing the next 25 years there will
income of $15,565,824 for the cal¬
be a rate of progress and growth
endar year 1958.

.Giving effect to the sale of the

debentures, capitalization of

new

the

company

Aug. 31, 1959,

and

subsidiaries

was:

$225,390,000 in

funded

debt; 628,675 shares of
preferred stock; .and 8,265,177
shares of

common

stock,

par

$10.

greater than

nS fT y m
A

years.

And,

even

today

has many

WAT E R B U R Y, Conn.—Amott,
Baker &
Co., Incorporated, has
announced
son,

with its
as

that Andrew

Jr., * has

become

Jack¬

associated

Waterbury, Conn., office

Registered

Representative.

Mr. Jackson has had several years

experience in the securities busi¬
ness.

we must

sons

our

problems
I have been
as the SEC, about the
upsurge of frauds on the

recent

and investor

consumer

activities

these

the

menace

experience

the

last

be warped or distorted by old doc-

trines
needs.

which

ignore

new

social

collar

welfare

our

regulatory
agencies
sprang into being to meet what
was j-eit were inadequacies in free
market operations.
If such an assumption were valid when the
agencies were created, is it true

today?

Or,

markets

can

work

the

extent
to

serve

free
the

than

governmental
some

cisions?
f

believe,

this"sort of inquiry,
H

There

obvious
limits to what the government by
administrative regulation or
otherwise, is able to do or should
are,

course,

vlsl°h
problem.

and

cials
of

all

the

law

the

see

enforcement
excellent

Commission's

intensified

enforcement

program
stock swindlers.

May I
press

use

offi-

results

against

for

ex^-

the

were

criticism

current

disclosures as to some teleshows point up the

areas.

hope that the success of
be fully understood
appreciated by the American
people, I salute it for 25 years of
outstanding public achievement.

*An address of Mr. Rogers, delivered
by Solicitor General J. Lee Rankin before
the 25th Anniversary Celebration of the
Securities
and
Exchange
Commission,
Washington, D. C.

the

Cocoa

Merchants

Association

of America, passed away suddenly
Oct. 25th at the age of 50.

•

Edward A. Talbot

Edward A. Talbot, associated

wittt

the Burlington, Vt. office of W. E.
Hutton

& Co., passed away sud¬
denly Oct. 22nd at the age of 53,

Prior to joining W. E. Hutton 12s
Co., Mr. Talbot had been a partner

in Edwards &

Hanly.

Amott, Baker Appoints
150

Broadway,

member

New

the

New

York
York

City,
Stock

Exchange has announced the ap¬
pointment of Arthur Buffman as
a
Registered Representative with
its

New

York

Office.

Mr.

Buff-

joined Amott, Baker & Co.,
in March as a securities analyst
following his graduation in Janu¬
ary 1959 from The City College
of New York as a major in Finance
man

and

Investments.

Opens Inv. Service

tober

Hamilton Allen
17

the

passed away Oc¬
age of 67.
Mr.

imagine the Allen had been one of the found¬
greed and cynicism which prompts ers of Cowen & Co., New York
a
few
people
deliberately and City.

RAYTOWN, Mo.—Olga A. Becker
is engaging in a securities business
from offices at 7825 Hedges
under
the
firm
name
of
Becker

Investment

Street
Olga

Service.

She

associated with
Fleetwood Securities Corporation,
was

formerly

W. G. Droge Opens
SAG HARBOR, N.

Droge
Street.

Y.—William G,
a securities

conducting

business

Hamilton Allen

other

SEC will

rnent regulation,
difficult

linger

Unger, member of the
New York Cocoa Exchange and

and

Integrity ard character
products of a whole society,
n°t of law enforcement or governis

blurred by any

the

are

this occasion to

appreciation

story

Arthur J.
Arthur

regulation— Amott, Baker & Co., Incorporated,

these economic de-

There is room, I

hand.

most unfortunate indeed if such
success

pUbnc interest, would it be better
to let market pressures — rather

d° to control public morals. Pub-

heartening to

time giving maximum recognition
to private initiative.
It would be

the

Some

country than the bank robber who
plys his illicit trade with gun in
It is most

viding safeguards against excesses
in our system while at the same

public. The

"white

hiding behind a cloak
respectability, are no less a

not ignore the les-

50 years has so painfully taught
us. ' Neither should our attitude

concerned,

bandits,"

Joins Amott, Baker Co.

tions

mold

course,

In formulating modifica-

poses.

from

offices

Union

•

Goldman Opens Office
Herbert Goldman is

engaging in a

securities business from offices at
55 Liberty

Street, New York City.

The Commercial avcl Financial Chronicle

(1806)

See You at the

Fund, Inc. reports
September 30 of $3,619,138, equal to $10.12 a share on
357,492 shares. This was the fund's
first report and covered the four
Oppenheimer

RICH

ROBERT

net assets at

The Chronicle's genial representa¬

tive, Edwin L. Beck, will be cover¬
ing the proceedings of the National

New

has

York

the

been

Anniversary

month

this

site

the

erations

first

annual

membership meeting of the National Association of Investment
Companies. Although they did not plan it that way, it was an
appropriate time for this gathering of the leaders of the invest¬
ment company field, men who have attracted the billions of dollars
of savings of millions of American citizens.
For it was just 30
years ago that there was triggered in this same city' the crash
of stock market values, which marked the beginning of the most
terrible economic depression this country has even known.
>
;

The

Edwin L. Beck

Security Traders Association Con¬
vention at Boca Raton and will be

waiting to get a picture of you for
the Silver Anniversary Issue.

(Special to The Financial Chronicle)

Herbert J. Yates, III, has become
associated with Brush, Slocumb &

Co.,

Inc.,

465

members
Pacific
He

Coast

Street,

California

the

York

New

Stock

and

Exchanges.

Joins Amos Sudler
DENVER, Colo.—Donald J. Hinkley has joined the staff of Amos

was

way

was

True, free riding, 10% margin, jiggles, pools, corners and the
other evils no longer are
prevalent.
But not even the most

less foolishness today,
pardonable pride,
in the immensely important role they have played.
What they
have done is to educate a whole generation to the wisdom of
sound long-term investing under professional guidance.
out

human

If there is

greed.

investment

assembled

the

leaders

take

could

Looking at them and listening to them* it was clear that these
were men who had themselves struck it rich.
The rewards have
been

considerable

and

may

school

far

from

handsomer in the years to
come.
But if the "laborer is worthy of his hire," then surely none
could begrudge these men their good fortune. Most of them either
or

even

Wall Street

the

scene

of the hectic

not think in terms
the investment field
in this country.
Their remoteness from the simple nonsense of
another generation was exemplified during an informal chat when
1920's, so they could be forgiven if they did
of the unbridled speculation that once marked

(Special to The Financial Chronicle)

Street. He

And

were

formerly with A. G. Becker
& Co. Incorporated.
was

C. Sudler & Co., 818

1929.

sad, for there are even
at this late date altogether too many people — although portfolio
managers are not conspicuous among them—who think and talk
and act as though the Folly of the 1920's never happened and even
if it did, it could not happen again.
*

spring

Calif.—

FRANCISCO,

stringent Federal legislation and the most onerous margin rates
can save the little people (and the big, too) from the follies that

Brush, Slocumb Adds
SAN

of men is short. At least, no one at this first
investment leaders appeared to be thinking of the

memory

meeting
Crash

Seventeenth

formerly with In¬

vestment Service Co.

old Wall Street cliche

about "not

was

Inland Steel

and

were

down 9

vailed when the strike started

AMUflMft

This is the old chestnut

introduced.

strikes." Even as they discussed the longest
strike in history, steel shares were being buffeted.
They
were witnessing another demolition of a Wall Street cliche: such
issues as Youngstown Sheet & Tube, Republic Steel, Armco Steel
selling

steel

Men

with

14%

from the level that pre¬

in mid-July.

United

deep

States

sense

continued

Steel

WRITE FOR

medium.

And

companies.

FREE INFORMATfOR
FOLDER AND PROSPECTUS

And,

NATIONAL SECURITIES

who think primarily in terms of the future, they

problem with which they must yet come to
of the investing public with bonds,
brought into sharp focus by the Treasury's success with its 5%
notes (the so-called "Magic 5s"), has made them realize that they
must vie henceforth with a powerful competitor for the public's
investment dollar.
Yet another competitor, only now emerging,
is the savings banks and savings & loan associations. Now paying
their depositors 3V2 to 4x/2%, they have lost hundreds of millions
grips.

RESEARCH CORPORATIOI
Established 1930

NLftjf

Broadway* Mow Yorlt 5,

as men

talking about

were

YOUR INVESTMENT DEALER Oft

The

dollars

new

attractive yields provided by

All of which

EITHER PROSPECTUS
FREE ON REQUEST

j Incorporated j
Investors

•

ESTABLISHCD 1925

brings us back to our original point—the littlenoticed passing of the anniversary of an unhappy time.
This
generation of moneyed people don't buy pie in the sky—not for
them the high-priced stocks that have no record of earnings and
dividends. They have no aversion to getting rich overnight, but
nearly all of them recognize that it is as likely as the winning
ticket

the

sweepstakes.

So they are ready to settle for the
yields and if they are bold enough to
mutual fund or the quality stock can

medium that offers the best
seek

capital gain, the
attractive indeed.

appear

A mutual fund investing in

{

list of securities selected for

possible long-term growth of

capital and income.

measured by the
well-known industries." He noted,
as

unique feature of the fund,
a possible hedge
against

"as

that

market, short posi¬
taken ."in certain in¬

declining

tions

were

dustries
be

where

management be¬
disappointment -might

that

lieved

expected."
t

decline

the

share value

Rodman, Renshaw Adds
(Special tqthe Financial Chronicle)

■

list

■

income.

for current

CHICAGO, 111.—Samuel Levin is
with

now

209

South

bers

T_J
A prospectus

each

west

I
■

your

200

•

Mid¬

Exchanges.

Levy Staff

(Special to The Financial Chronicle)

CHICAGO, 111.—Bernice B. John¬
son

has

joined the staff of Robert

Levy

Bank

Co.,

Building.

Brooks &

National

$6,265,049 to $6,701,170. Over
period, net assets' per

from

the

same

gained from $18.30 to $18.63.
of its assets

The fund had 40.21%
in

common

;

43.56%

stocks,
in

15.63%

and

assets

during the latest

reflection of "the

preferred
stock com¬

mitments were in consumer goods,

public utilities, rails and oils.
-

sS:

Pioneer Fund, Inc.
asset value at

placed its net
$36,607,316, equal to

$8.47 per share, as of Sept. 30. This
represented an overall gain from
the

$36,600,185

assets re¬

net

general decline in common stock

ported June 30 but a decline from
the $8.91 asset value per share at

prices that has taken place since
early
August."
It
showed net

asset value per

assets of

$0.16.

quarter

ber

was

30,

$560,537,743 on Septem¬
equal to $9.40 per share

59,655,575 shares outstanding.
compared with $457,380,970,

This

a share on 53,800September 30, 1958.
As of June 30, 1959,
net assets
were $581,214,400, or $9.92 a share
on
58,565,312 shares outstanding

equal to $8.50
894 shares

that

additions

Portfolio

time.

during the latest reporting period
were made in Chicago Pneumatic

Tool, Ford Motor, Gillette, Ingersoll-Rand,
International
Paper,
Newmont Mining, Republic Steel,
Sunray
Mid-Continent Oil and
Union Bag-Camp Paper. Reduc¬

Distributors

Group, Inc.,
at

holders will be asked

reclassification

stock¬

special

approve

the

common

November 4

meeting

stock into class A non-voting

and
categories. The
plan also makes provision for ex¬
change of non-voting for voting

class

voting

shares.
sis

Financial

sit

Securities

the

statement

would

Trust

Bankers

would

York)
group

has
Ex¬

governing

for

shares.

registration
contractual
Incorporated Investors

change Commission

plans

Corp.

Planning

with

filed

that time.

(New

custodian

and

creditor life insurance also
be available, if SEC ap¬

proval is forthcoming.
s*s

ViceMutual

Ridge

from

$38,117,000, equal to $22.97
share, on June 30 to $36,071,807, equal to $21.73 per share, on
Sept. 30. Increased commitments
were made in Ford Motor, Johns-

Manville, Continental Can, Radio
Corp. of America and Foote Min¬
eral. There were decreases regis¬
United

States

the

accumulation

Associates,

has been

programs,

President

elected

monthly

Ridge

Inc.,

and na¬

sponsor

Cola, North American
Hugoton
Production,
Panhandle
Eastern Pipe Line, and American

Telephone
-.

•

Telegraph.
#

1s.-.

Tri-Continental

Corp.

reported
investment assets of $398,198,309
at Sept. 30, up slightly from $392,054,570 at Dec. 31 and a sharp gain
over the $361,879,396 of one year
earlier. Assets per share amounted
to $47.65, a decline from Dec. 31
but well up from the $44.22 set
Sept. 30, 1958. The company took
a new position in Pittsburgh Plate
Glass, eliminated its holdings of
Lockheed Aircraft, Dresser Indus¬

tries, United Gas Corp., American
Stores,
United
Aircraft, Boeing
Airplane, Mississippi River Fuel
Corp. and Amerada Petroleum.
&

Public

General

Service

Corp.

slight decline in net
assets
per
share, from $6.17 to
$6.12, over the three months ended
Sept. 30.
New purchases were
Searle.

Pharmacal

and

Eliminations

were

Crown

Zellerbach, Deere, Joy Manufac¬
turing, Litton Industries, Revere
Copper and Texas Instruments.
$

sje

United

States. &
Corp. of Foreign Securities Corp. amounted
Net

Investors Planning
America

Co.

CocaAviation,

•»»

Rubber,

Chemical,

Insurance

City of New YTork,

the fund.

distributor of

Ridge

Blue

Life

States Borax

United

Capital Program Corp.,, Norwich

Blue

Tire

General

tered

Fund and

dis¬

Inc.,

per

sponsor

Fund,

Dominick

The

President

Blue

31, however,
came to just

closed that its net assets dropped

experienced

sis

Hofmann,

Raymond

Last Dec.

Closed-End News

assets

members

Department

setting up a Spanish
to promote mutual

fund investment among the 1,000,-

the

Pacific

Coast

"Our
gueros,

people,"
"have

said

many

Lopez-Tri¬
problems in

with other

non-Englishspeaking groups who have set¬
1
tled here in the past. Limited in¬
With Harriman Ripley
come is a major problem for many
of them, but their standard of liv¬
(Special to The Financial Chronicle)
BOSTON, Mass. — Damon Mez- ing is catching up to that of others
more
firmly established in the
zacappa
is now with Harriman
New York community.
Only
Ripley &
Co.
Incorporated, 30 temporary
language
differences
common

First

- "

• • i;.

31, 1958, to Sept. 14,
1959, Composite Bond and Stock
Fund, Inc. boosted its net assets

Belmont Towbin Director

Co., Inc., 333 Pine Street,

Stock Exchange.

Berkeley Street

Boston, Mass.

Stock

& Renshaw,
Street, mem¬

New York and

Joins

hires Inten t dealer.

The Parker Corporation

the

Salle

fundisavailable from

Rodman
La

to $116,330,129, equal to $35.14 per
share, as of Sept. 30. At the same
date last year, assets were $121,000 New York metropolitan area 362,554, equal to $36.66 per share.
residents from Latin America. The Largest
industry
holdings:
oil,
announcement was made by I. P. 35.11%;
chemical
and
drug,
C.
senior
representative Frank 21.39%; metal and mining, 15.20%,
With I. L. Brooks Co.
Lopez-Trigueros, who has been and manufacturing and miscel¬
(Special to The Financial Chronicle)
developing a group of Spanish- laneous, 10.89%.
SAN FRANCISCO, Calif. —Ken¬
speaking representatives in the
neth L. Gage is now with I. L.
firm.

buying uranium. Their attitude today is: Tve worked long enough
for my money. Now let it work for me."

A mutual fund investing in a

Inc. re¬

From Dec.

year

that

port
and

share,

'■

;

$133,962,695,

stocks. Major common

••

earlier, but some
$20,000,000 less than on June 30.
It was noted in the quarterly re¬
a

„

Investment management and industry are entering a period
of the most severe competition for the thrifty family's dollar.
As one investment adviser summed it up: "The people are not

Income Fund

of securities

Fundamental Investors,

"""

ports net assets at September 30
were more than $100,000,000 above
those

bonds

'•

•

tional

J Incorporated J
I

compares

vorably with the general trend of

or
$20.45
Sept. 30, down from
record $142,430,607, or $21.74
share, at June 30.

per

record

prices

can

reported net

Madison Fund, Inc.,
assets

the

stock

they

which

enjoy."

and

op¬

fa¬

told

this

believe

afford

both

shareholders "we

President,

purchasing many prod¬

and services

ucts

last

the Treasury. All indications are that interest rates will go higher
before they go lower as they struggle to hold on to depositors.

its

founding

the

Puerto

kept

have

exploited

ing

Ricans and other Latin Americans

per

fascination

deposits to the

Thursday, October 29, 1959

here from

that time shares were
priced at $10. Max Oppenheimer,
May.

.their most-favored or
high up in their pre¬
ferred list were such stocks as Republic, Bethlehem Steel and
Armco.
If they were buying and holding—rather than selling—'
such issues, it was not because they remembered some old wives'
tale, but because they believe that the future belongs to such
second-favored investment

since

of the costs to the economy of this
tions
were
made
in
Amerada,
wasteful strike, they nevertheless recognized that nothing basic
Burroughs, Kimberly-Clark, Shell
had been altered. These were men who htought primarily in terms
Oil, Standard Oil (New Jersey)
of the deep currents—not the ripples and eddies. Their aim was
and Texaco.
not short-term gain, although they have had more than one,,
ev"7r-~ *
*
r
They were thinking in terms of long-range investment.

INVESTMENT

120

months

one-half

and

A Birthday and

The Funds Report

MUTUAL FUNDS

Convention

Federal Street.

and

understandable fear of be¬

Belmont

Towbin,

investment

partner

the

banking firm of C. E.

Unterberg, Towbin Co., New York

City, has been elected a director
of Hermes Electronics Co., a lead¬

ing

manufacturer

electronic

timing

of precision
equipment and

crystal filters,, it was announced
by Malcolm MJ Hubbard, Presi¬
dent, following a meeting of the
Board

of Directors.^

Volume

190

Number 5894

The Commercial and Financial Chronicle

which

Sound and Unsound
American
scholar

and

the

gold

uted to

been

our

experiencing since 1933

can

denies

out

the

And

Sound Money," has

tionship

that

direct rela-

great

document;

for in the very first Article of the
Constitution

(Sec.

nation

gold

involved

standard,

such

checks, like paper money, are "as
good as gold."

the

Now,

fortnthat,., lhe

tacoin Tdmie

to the government

it-

self: Ever since 1933 the U. S. has

rL.Ongiess Shall

ciajmed

that the American

y-Sis worth

Vafue ^thereoL

dollar

one-thirty-fifth of a fine

actions w^b forei?n central banks

'•

r£?o.ur government' fails to make
the Standard
i-'-'SHH good that claim—it refuses to permit our citizens to exchange their

of Weiehts and

Measures." Ichoose^do^o fIn
T^nnfd
like to call attention

Frederick G. Shun

the

fact that the Executive branch

Government, in 1933, improperly encroached on the prerogative
of
the
Legislative
branch
our

when

the

President Roosevelt altered

value

our

and
the Constitution

thereby violated
which he had

currency,

sworn

uphold.

^ recently as 1931, a14famous
committee
of

British
nent

emi-

economists

known^as the

financiers,

the following state-

appears

There is,

perhaps, no n101'e
important object in the field of
human technique than that the
world

system.

whole

and

sound

should

scientific

there

But

can

achieve

monetary
be little

ho hope of progress at an early
the monetary system of

date for
the

world

whole,

except

,tanrtarrt"

Denies

It
of

histonc,

sianudiu.

T^ti^Lindf?hleftvde^f1tte

^
*
Governme t can pioduce
paper mor?ey at less ?an ?ne"
J?
p(lr p£rce>. \n ,anY denominaJ0?'^
fn
^er ?W1S?
?. ?
years ago: Bank notes
which cannot be redeemed in gold
c

and silver at the will of the holder
are miserable,
abominable, and
fraudulent."

does

not

mean

that people would rush to convert
paper

into

money

enjoyed

onjy

gold

that privilege;

for

unwise
person
would
sacrifice the interest he is getting
on his savings in a bank in order
an

to hoard

gold; but he has

right

to know that those dollars he has
will

saved

good
he

maintained

gold." That

"as

assurance

can

guaranteed only'by the time-

honored

principle

the

gold

standard

Subject

people

our

standard

Complicated
so

many

the gold
complicated
reality, it is
examples
of

regard

very

subject—when, in
quite, simple.
As
otherwise

brilliant

people

who

look upon this subject as "compli-

cated," let
ing cases:

(1)

should

1895, when

the

A^inh

the

United

States

money

Mr
/-"nrim

ar*f

of silver,'

that

de™and, at that

a'
',

m' '

at'

demand

"Wealth

Nations,"

the

first

k£

year

ex-

pedient by whlch a real Public
bank™ptcy

has

disguised

been

under the appearance of a pre-

raised

a'? comprehension.

<2} Agam, at my fiftieth Reunion at Ithaca, m 19o7, the wife
of one of my classmates-a man
•

who

was

successful

SL0?,«
the large

presldent
one °
steamship com-

above

difference

seemingly
intelligence

woman

average

does

paper money is

£U£Stl°n:. 3?^
^ake ^hether
backed with gold

sea-shells.

°r3
of

lawyer and

ocean

panies—and
far

When people of the background
the two I have just quoted

have

vague

conception

what is meant by the gold standard, it is understandable that the

problem
money

of our coin" when

gol£

official-price

from $20.67 to $35

ounce

f U^e of gold» and thereby, "a real pubgold as Wney is bc bankruptcy was disguised

iri

of promoting
difficult one.

sound

Standard

under the appearance of
tended

paym^t."

pre-

Hamilton,

the Treasury

under

dently

principies 0f sound

money as por-

f
d b
Adam Smith and
Washing(on and Hamilton
Peared

paper money
wjtb

well

aware

both
ap-

that

better

than

sea

that

must be

specie-backed, i. e.,

sup-

ported with gold and/or silver;
and they chose to use both
of
these
forms
of
specie because

in very short supply in
this country in 1792. They gave
the dollar a value of 371.25 grains
was

24.75

interest

silver. And it may be
to
know
that
that

counts, those checks

silver-content

as any

never

be held to
of

adhered

the

should

our currency

fixed value in terms

gold—the

correct

and

honest

our

'dollar

has

been changed to this day—

idea

redemption

standard

of
an

address in the U. S. Senate
among

his
the

title

which,
addresses,

published

carries

Redeemable

Paper Currency." In that address
are the following forthright state¬
ments by the great Webster:
"I

know, indeed, that all

ought

paper

to circulate
on
a
specie
that all bank notes, to be
must be convertible
into

basis;
saje,

gokLtand silver at the will of the
holder

...

deavored

against

have

already
the

warn

irredeemable

against the

en¬

country
paper;

of banks which
do not pay specie for their own
notes;
against
that
miserable,
paper

abominable, and fraudulent policy
which' attempts to give value to
any paper, of any bank, one single
moment longer than such paper
is redeemable on demand in gold

becomes

evident,

irredeemable
as

with

ever

have

therefore,

paper

money,

been

since 1933,

that

money

Daniel

operating
a type of
regarded as

With the Civil War

in
1861, President Lincoln apparently
felt that our limited supply of
gold
needed
to
be
conserved,
since, in making foreign purchases
of war supplies, the only money
we could use was gold. He there¬
fore
temporarily withdrew the
privilege of redeemability,
do¬
mestically, as a wartime measure
upon

—and that held true for the

18 years, known as the "green¬
back" era. But in the early 1870s,
with
the war behind us, many
we

sound

ought to get back on the
foundation of the gold

standard.

Senator

the

Sherman—who

chief

of the
"Resumption Act of 1875," which

—was

sponsor

restored the dollar to
standard

of Jan. 2,

true

gold

1879.

Sherman,
alone

however,
was
not
effort; for he re¬
great assistance from a

that

first-President

versity,

which

White

1868.

that

the

Cornell

opened
had

its

made

Uni¬

doors
care¬

ful

study of the unfortunate ex¬
perience of France with irredeem¬
able paper money in the 1790s;
and he developed those facts as an

planets

nation

saying
fixes

is
the

its

monetary
unit
in
terms of a definite weight of gold,
it can no more change that value,
properly, than one could change
the planets in their courses. Un¬

fortunately, those sound "financial
laws" were ignored in 1933; and
we have been suffering from in¬
flation

since.

The only re¬
gold standard.
You may not be aware that it
was
the
distinguished
Senator

liable

ever

is the

cure

from

Massachusetts, Henry Cabot
Lodge—grandfather of our presnet-day Ambassador to the United
Nations

Madrid

and

who

—

wrote the

gold-standard plank of
Republican Platform of 1896,
on
which McKinley was elected
over
William Jennings Bryan of

the

"crown

thorns,

fame. And it

was

cross jof gold"
Mr. Lodge who

delegated, in 1900, to go to
Canton, Ohio, to formally notify
President McKinley that he had
was

nominated

succeed

him¬

self, in the 1900 campaign. On that
occasion, Mr. Lodge delivered an
which

address

the gold standard as
stone of
Those

economic structure."

our

were

referred

"the corner¬

wise words and show,

only too clearly, that we are to¬

operating with an economic
structure from which the corner¬
day

been removed—and

stone has
results

can

with any

disastrous

the
as

structure under like con¬

ditions.
There
of

can

doubt that

the strongest advocates

one

of the

gold standard that this nation has
ever

had

President Theodore

was

Roosevelt.

And, in support of that

statement, I will draw on the four

following direct quotes from his
published addresses:
(1) "An honest currency is the
strongest symbol and expression
of honest business life.

...

A fi¬

nancial system of assured
is

the

first

essential."

honesty
(Logans-

port, Ind., September,, 1902.),
(2) "All other issues (referring
to the campaign of 1896) sank in
importance when compared with
the vital need of keeping our fi¬
nancial system on the high and
honorable plane imperatively de¬
manded by our position as a great
civilized power." (Canton, Ohio,
January, 1903.)
(3) "This nation is on a gold
basis. The Treasury of the public
is

excellent

condition.

before has the per
culation

been

Never

capita of cir¬
large as it is

today; and this circulation, more¬
over, is of money every dollar of
which
is
at
par
with
gold."

(Syracuse, September, 1903.)
(4) "We know what we mean
when we speak of an honest and
address which he delivered be¬ stable currency.
So long as
fore
groups of
Congressmen in the Republican party is in power
the gold standard is settled, not as
Washington, and businessmen in
New York. He thereby gave great a matter of temporary political
impetus
to
the
gold-standard expediency, not because of shift¬
...

movement

favorable

which
action

resulted
on

United

States

Theodore
any man

of the irredeemable paper money
we have been
using for the past

'which

quarter-century,
with

\ "

us.

stil?

...

leading industrialist of hk#
time, and a great: public benefac¬
tor, Andrew Garnegie had a clear
understanding as to what consti¬
tutes sound and honest money. In
a

before

address

Club

Economic

the

New

York, in 1908, Mr.
Carneige had this to say: "There
is only: one substance in the worl<S
which cannot fall in value, be¬
of

cause

itself

worlds

the

standard of value, and that is gold,
which the banks of civilized na¬

North

their reserve."

gold to

the

compare

Star

this

sense:

that

the^orth Star "about which

the

solar

system

that

revolves";

gold occupies a somewhat similar

White

once

value

hold

Dr.

Decline Post-1933 Paper Money

which

What

those forth¬

to.
produce
equally strong arguments in favor

the

real in their operation

been

silver."

and

comment

right
statements
by
Roosevelt, I challenge

laws

debate which

leading role. On the 22nd
Feb., 1834, Webster delivered

(Oyster Bay, N. Y., July,.

their courses."

have

results

1904.)

went

similar

those

that monetary

wisdom."

tions

reached

what

with

accordance

has

standard.
In

but

regard as the fundamental princi¬
ples
of
national
morality
anc*

kind if not in degree; all of them
show the existence of financial

sound-money principle of the gold

recently suggested by ceived
friend. They knew Yale graduate, Andrew D. White,
was
the
paper money, to be honest, who
co-Founder
and

are as good
other circulating currency,

government

our

principle that

Cornell

valuable

ac-

23.22

shells—as

ample

bank

24.75

gold-—resulting in, coin recognized in the commerce
the
desired 16-to-l relationship, of civilized
nations, it intrusts to
and the well-known official-price them the power to raise or de¬
of $20.67 per troy ounce of
gold, press the value of every article
and which price was never again
in the possession of every citizen."
tampered
with
until
the
New
(2) "Every other attempt of the
Deal took over in 1933. In other
same
kind in human history,
words, for almost a full century under
whatever
circumstances,

needs to be backed

something

the drawers of those checks have

their

from

of fine

Washington, was evi- later became Secretary of the
familiar with the basic Treasury under President Hayes

pure silver,
and a value of
grains of pure gold—on the
theory that gold was 15-times as

dollar

President

quite simple, let me
put it this way: Bank checks to
the tune of billions of dollars, circulate as money; and, so long as
funds

the

felt

Aiexander

Secretary

gold

To prove my point that the gold

pub¬

coin has been the most usual

"I will

merit

some

The worlds greatest economist, "miserable, abominable, and
fraudulent"; and that it is high
Adam Smith, has this to say in time that we restore the dollar
bls monetary m a s t e r p i e c e; to an honest basis.

tv,^
denomination
free coinage

and continued:

were

15-to-l

been

such

red|emable

New^ York Tim Js"! tended Payment." Well, in 1933,
xurifiiri 3Uo our political leaders "raised the

opposed to the

have

that

Storvof the

was

the

to that
(1) "Whenever any nation in¬
suggestion, for Congress, effective. trusts to its legislators the issue
in 1837, dropped the gold content
of a currency not based on the

promptly restore the dollar

1776:
"The
raising of the denomination of the

«T?mes^

York

New

+V.A

that

lished

the distinguished editor of

cussed

the

cite the two follow¬

Let's no^ get down to the historic reasons which support my
theory

unfortunate that

basic

tte'Tartin|.
SSS
guia

and preserved the gold standard
those who intact. The following two passages
relationship from Dr. Whfte's book throw a
as between gold and silver wasn't
lot of light on his thinking as
quite right—that it ought to be. respects the subject we are dis¬
16 to 1, instead. And there seems
cussing:

that

principle of the gold standard, brought about the results just
which is: the privilege of "re- mentioned, Daniel Webster played

Macmillan Com- their
1 fiir ^epo^ ' in they

mi-1?'
which
ment:

and

* wo?d ^

ortier

ignores

government

our

grains

A Basic Principle

sulted in the election of McKinley-,

change whatever in the
the dollar;
but in the

early 1830s there

felt

properly be attrib¬

where

Century of Fixity

any

value

present unsound currency than to any other major cause,

My subject, "Historical Aspects of

a
small book, his monetary
masterpiece "Fiat Money Infla¬
in France," which was re¬
printed in pamphlet form and
used as campaign literature in the
political battle of 1896 which re¬
as

Under that system we went for¬
for about forty years with¬

standard

Dr. White

ward

or difficult to grasp. Reviews the historical
aspects of our monetary systems, and concludes that the inflation

have

"Resumption Act"; and later on,
published that address

the

set, the specie
should never

tion

subject is complicated
we

with

accords
once

value of a
currency
be changed.

Money Systems

writer

strictly

principle that

By Frederick G. Shull^A'eir Huvety Conn.
Connecticut

(1807)

ing conditions in the production
Sherman's of gold in certain mining centers,

position with respect to all other

and that "to deny
privilege of serving

commodities;
to

gold

the

standard

nearest

all

would

value

to call the star

refusing

stars

the

true

North, the North Star."
In 1921, Andrew W. Mellon be¬
came
Secretary of the Treasury
under President Harding; and in?
just three years Mr. Mellon re¬
duced the national debt from $2$
billion to $17 billion—a reduction
of $9,000 million. And in 1924 Mr.
Mellon \yrote a book, "Taxation:
The People's
Business"; and in
that book he

gives the following
strong views in support of thegold standard; "In so far as thk»
government is concerned, its pol¬
icy has been to keep its own house
in

to maintain the gold
unimpaired; to balance
budget; and to carry out a

order;

standard

its

reasonable

program for the or¬
derly funding and gradual liqui¬

dation of the

war

debt."

Finally,

in
addition
to
the
opinions of the outstanding mone¬
tary experts and statesmen whoto
I have quoted, it is safe to
jsay
that every President of the Uhfted
States from George Washington,
to Herbert Hoover, inclusive, must
have had a high regard for the
gold standard as a means of keep¬
ing our currency honest; for, so
far as I have ever heard, no Presi¬
dent, prior to 1933, ever tried to
discard the gold standard. In other
words, from the establishing o£
the American dollar in 1792 right
down to

the

1933—or for

Legislative

Government

tutional

140 years—

branch

retained

prerogative

its

our

Consti¬

"coining
the value
unwise
Chief Executive, who had just
previously taken a solemn oath»
to uphold the Constitution of the
United States, within a matter of
money

and regulating
But, in 1933,

thereof."

months

violated

pledge—as great
honesty as has
flicted
And

the

has

that

been

piece

very

all, for the inflation

solemr*

of dis¬
ever
been in¬
American people.
a

costly
we

our

have

been experiencing ever since

can

properly be attributed to»
present
unsound
currency

system

than

any

other major

cause.

We shall

get away from
dishonest money—
namely, irredeemable papermoney — until Congress can bo
prevailed upon to take favorableaction on one of the gold-standardl
that

type

never

bills that have been introduced tot
that body every year for the past
several years—such, for example,

Representative Heistand's most
one, House Resolution 368,
he presented before that
branch on Jan. 7, 1959, but whicl»
—like its predecessors—has evi¬
dently found its way into a Con¬
gressional pigeonhole.
J
as

recent

which

^Address

by Mr. Shull before the Eva

Lear Chapter,

Revolution,
stitution

Daughters of the American
Haven, Conn., on Con¬

New

Day.

The Commercial and Financial Chrorficle

(1808)

of the dollar. And nothing
surely
will
undermine
confidence
than
continued

power

Present Imperative Need
For Advance Refundin g
Continued

this

from page 3

of
confidence in our fidelity to sound
monetary principles can cause our
foreign short-term creditors to
rest

the

world.

Any

shift their balances with
.

strain

loss

how

our

stand

which

policies

here

about

Where do

home?

domestic

required

are

protect the value of the dollar?
of
'

It is becoming evident to those
us who have been in the thick

of things in Washintgon this year
that one of the greatest monetary

debates since the days of William

Jennings Bryan has been shaping
up.- In 1896, the people of this

country overwhelmingly endorsed
sound

money

Will

rency.

this

and a stable cur¬
they do so now in

As I have already

stakes

of confidence

simply,
and

•sound

indicated, the

high. The maintenance

are

quite

As for

our

is,

currency

essential

sustainable

both

sound fiscal policy,

results of the recent "battle of

economic

the
the

budget," as it has sometimes been
called, give us confidence that
policies aimed at protecting the
widespread

receive

public support, once there is an
understanding of the real issues
that are involved.
It seems clear
that public sentiment, in response
to President Eisenhower's leader¬

ship, tipped the scales against ex¬
cessive government spending in
the last Congress.
This is a battle
which
the

never

good

ends.

way we

the American

sense

people, we can report progress on
the budget front.

the

why

reason

much attention is centered on the

Federal Reserve is that during the

period and up to 1951, the
System was not free to put an ef¬
fective monetary policy into oper¬
ation.
As you know, the low-in¬
terest rate rate structure and the
war

handle our affairs; they
effect, looking over our

the

There

results.

sincere

are

fix¬
shoulder to the tune of about $17 ing interest rates by government
fiat, supported by heavy Federal
billion.
Reserve purchases of government
The
United
States
is
a
rich
in

country.
nation

instances,

many

icy—even costly mistakes — and
still get back to shore.
But loss
of confidence in the value
dollar

not
It is

stances.

advocates today of once more

securities.

afford mistakes in pol¬

can

rience,
nations,
such

Surely

well
should

our own

expe¬

that of other
us against

warn

;course.
*

now

come

to the third

essen¬

of
a
sound
governmental
of these in¬ tial
different type of financial program; freedom of the

problem entirely.

The social and

economic losses sustained through
serious or prolonged erosion of

the currency1— which is another
term for Serious

prolonged in¬
flation—are. not easily regained.
At best, the damage can be re¬
paired only at the cost of a pro¬
gram of austerity.
The hardships
and inequities which result from
or

Treasury to conduct a flexible and
prudent program for management
of the public debt.

riber of the nation.

Worst of

all,

Managed

you

are

Public

debt

aware,

Debt
man¬

agement is being hampered under
present

At the President's

more.

the

ceiling

terest

rates

request,
Savings Bond in¬
raised to 4*4%

was

by the last Congress, and certain

be in danger of losing some of our
economic freedoms in a drift to¬

technical provisions were enacted

ward socialism.

to facilitate Treasury refunding of

—

outstanding debt issues in advance
The ceiling on mar-

Everyone's Responsibility
At

this

point, let
recognize

must

that

say

first

of maturity.

that

sound money program is not sole¬

responsibility of the govern¬

ment.

approach on the part
of both business and labor which

beyond

goes

just shcrt-run

con¬

ketables, however, was untouched,
despite
extended
Congressional
hearings and the President's state¬
ment in a special message to Con¬
gress on Aug. 25 that "No issue of
greater importance has come be¬
fore

this

session of

Congress."

quirements for keeping our econ¬
omy on a steady upward course.
Perhaps I am an optimist, but it

for, and the basic
early action by the

that

can

discern

progress, even if slow progress, in
tnese directions.
In

rests

inflationary.

was

Need for Advance
Without

the

going

into

much

too

technicalities

the

long-term investors
its

securities

matter,

holders of

offering them
an
opportunity to exchange for
new securities of longer maturity
before the passage of time brings
the
maturity
of
their
current
holdings down into the short-term
area.
It is at this point that the
typical
long-term investor
dis¬
them

with

tions.

Too

will

his holdings and replaces

poses of

longer-term
often

shift

this

obliga¬
point he

investments

other

than governments. We believe ad¬

refunding affords an excel¬
technique for debt lengthen¬
ing with a minimum market ef¬

vance

lent

fect.

The

existing 4*4% ceiling is
forcing us to concentrate offerings
in

the

area.

under-5-year

.maturity

told

have

the

^JtjJs pertinent, |h four3 years and ten "months and
here that,,if business
to'pay a rate of 5% that assured
expand;; the^4 /4 lo that we would draw
.$2 billion of
interest ceiling, if
npt -removed, :qrae investment funds into the
will have, over a peripd
of^eais, issue.;-'-We: feel the'^results have
the same damagingeffect *bndhe
been sa|utary. Certainly the very
economy
as
continued
budget short-term rates would have been
to point out

Refunding

the purpose of advance refunding
is to enable the Treasury to keep

Con¬

continues

i? c/' '^r
stiU higher * had we not modestly
ceihi^teim ^extended this $2 billion. The re-

budget and the 4/4 %
result

excessive.

,financing

suits would have been

through
which

short-term^ character
have much the, n^ru^en^s, saiutary
Pf<-some

money,

if notjaken by ,the:
'' 4
'

even

extension bevond five years,
s
.
*
J

two years, arpSo far, I have confined my disof longer-term .cussion to marketable issues.-Now
into, it as a a word about Savings Bonds."' --v*.
result of the passage of time.
;
'
i
\
During
other

the

billion

issues will drop down

tion, the heavy financing

during

World War II in the form -of Jong-

bonds

bringing

pe¬

remove

the

control

since

present

wisdom

of,

Congress to
ceiling, both

future inflation

and

hold down the cost of interest

the

public debt.

Those

the

who

Treasury

down
ment

riod of years; second, an indepen¬
dent Federal Reserve System that

cal

will

pursue
effective monetary
policy; and, third, a sound man¬
agement of the public debt, which,
among other things, requires that
the Treasury be granted appro¬
priate latitude in carrying out

debt management
The
President,
the

Federal

policy.
the
Treasury,
Reserve

stand

We in the Treasury consider our
Savings Bonds program to be the
heart of our efforts to man-

interfere

with

rigid

little

holding
interest

possible

$20 Billion Is Involved

the

orderly marketing of
and
municipal bonds
that we ill the Treasury ha
and to give the widest possible
able
to find of
toward .
scope to the Federal Reserve for
a
more
desirable pattern.in the
conducting an effective monetary distribution of the debt is the
policy. The mere passage of time
advance refunding technique. You.
constantly stortens existing ma¬ will
see from my discussion of the
turities. Thus, the Treasury must
Various maturity areas .that^our
take advantage of every appro¬
debt
extension
problem
is
not ■«
priate opportunity to push out
actually a massive" one.
The
into the intermediate and longTreasury has, in the period since
term areas. But, under the stric¬
December,
1953, done ; a ,pretty
tures at present placed on
us, we good jobof minimizing growth of corporate

moving

are

boxed in.

Let!

total

specific.

marketable

billion
billion

$64Vz

the

Out

debt

present

matures

within

$187

time,
one

$76

year;

billion matures within 1 to

5 years;

and $46Vz billion matures
in 5 years and over.
<
the

short-term sector
maturing within one
year — the problem is, of course,
how to keep more and more of the
very

—securities

debt

from

term

area.

If the
extend

piling into this short-

Treasury does nothing to
the

debt

and refunds

advocate

terest

interest

rates

and

govern¬

borrowing costs. Paradoxi¬
it seems, however, the in¬
rate ceiling does not help

keep down interest rates. The
important reason why it does

most

not

that such a ceiling forces
Treasury into the most in¬
flationary type of borrowing —
short-term ■' borrowing.
Nothing
the

will act

more surely to raise
longterm rates for all types of
obliga¬

tions, public and private, than a
t firmly together in pursuit of these lack of confidence on the
part of
objectives.
I would emphasize investors in the future
purchasing
'

veryr very

comes

due

everything within the

1-year area, the passage of time
will increase the volume of under-

area.

debt

The

the

vet^een

sav3ngs and sch°o1 stamp plans"
We

are

debt

than

billion in the next 2 years,
total from the current

$35

Con-

inte£est.rates weareablejo pay
Savings Bonds,

even

though it

Preferable to
take the roig ceiling off entirely,
as~
recommended. The
?resldent approved ooth _an increase on the rate pn.newly-purchased xE and H bonds to 3"/i ^ if
held to maturity and an upward

adjustment in _the rate on outunder-one-year' standing E and H bonds. In practijob in- the-rally every instance, it is to the

essential

period ahead—if

had the "free-,
rates
of interest over a range of maturities—is to work toward ^relieving
the congestion in the one-t.o-fiveyear area.- I hesitate
to specify
an-exact figure, but, if,4in..additionto the extension required to keep
even
with the erosion caused by
the passage of time, we were able,
over the next twotor three years,
to move something of the general
magnitude of $20 billion out of the
one-to-five-year area into longer
maturities, it is our judgment that
we would
have a reasonably satisfactory structure of the ..marketwe

dom to finance at the going

a^J® debt.

that the

grateful

grcss' be£ore its adi°urnment last
monthi raised the ceiling on the

owner's advantage
^ld his
bonds rather than cash them and
purchase new Savings Bonds,
We

are

that

aware

who

believe

•

there

are

the

Treasury
should have fixed a higher rate
for Savings Bonds in view of the
some

current
believe
and

rate
our

marketables.

decision

was

correct,

I want to tell you why.

Savings

Bonds
are
a
hybrid
instrument. On the one
hand, they share one1 characteristic5
of
the
marketable- bonds,
namely, that the holder has a eontype

tract

to pay him an agreed rate
maturity which cannot be abrogated by-the government if and
to

the

the average over

„

-Defe,,ds Savings Bonds New Rate

To mention one more compUca-

many of them sincerely believe—
that such a restriction will hold

we
interpret this ceiling
substantial volume of such secuabe the debt in a non-inflationary
practically tie our hands in
rities, through the lapse> of - time,-' manner. Not only has the program '
planning advance refundings.
down into the intermediate-area
served';the nation
well in ' this
An important objective of the
where they appeal to a different • respect
but, supported by a tre,Treasury, in the national interest,
class of investor.
Every counsel mendous corps of volunteers, it
is to lengthen the debt whenever
of
sound
debt management, re- has been a powerful instrument for
conditions are appropriate. Debt
.quires that attempts should/be ; the teaching thrift. "Millions of
lengthening is not an end in it¬
made to extend this debt \yhile it
Americans would not have started
self. The Treasury wants to re¬
is still in the hands of holders who
OIi the road to accumulating savduce to a minimum the frequency
prefer long-term bonds.ings were it not for the payroll
of new Treasury
offerings so as

gress,

1-year

sense

even

had we been able to get

Here let me say that the cornNow to consider the i-to-i-iyear mercial banks pf this country did
area where the Treasury is forged
;an outstanding job in marshalling
to do all of its current "financing and
processing 130,000^separate
beyond the very shortest maturj-. suhscriptions for the note issue—
ties. This area, as I haVe indicated,,the largest number of subscripis already seriously congested, and tions
to any marketable issue
our major problem lies right here,
since World War I.
hanks

term

first, fiscal responsibility
of a balanced budget,
budget that is at least bal¬

anced

—

rate ceiling argue—and I am sure

in the

and

long

three closely inter-related

factors:

Developments

the

government area, the
achievement of monetary stability

our

term area.
In additiony the result- versely affect the whole market,
the present pros¬
ing \increase in- the'volume of That is what has been happening
perity contributes to a strong de¬
the next in the very snorr-term area in
mand for credit, the effect of the liquidity instruments
interest rate ceiling is to lock the thing to cash—would preserit seti- the last few months. It will hapous problems to the Federal Repen increasingly in the area up to
Treasury into the one area of
serve
System in its management five years if we are compelled to ;
maturities
the area up to five
of the money and credit hie'eds' of 'concentrate our borrowings short
years—which is already seriously
the economy.
;.
^
=
"of five years by reason of the legcongested and, therefore, suDject
'islative strait jacket.
' currently
to • excessive
upward Exchanging One Evil
jfor Another
It was because tne Treasury felt
pressure on interest rates.
As a
I mentioned before-that the 'isit was imperative to take some
practical
matter
the tceiling
sue of a balanced budget^reeeived
Gf the pressure off the heavy conlargely nullifies Ine Treasury's
wide popular approval,-.because
.
•gestioh~-< in- the- undertone-year ■
ability to do advance refunding, a
was felt that for the ^government
arga that we^decided, two weeks
subject I now want to comment
to continually operate-in.the-re.d.
to 0ffer a note issue maturing
upon.
•-:
So

that time
have underlined the pressing need

it is

area,

time thorough;a

deposits.
"
However, real difficulties would
The concentration of borrowing
borrowing
on
the
of the
government.
Con¬ result if the economy had to ab- jn any single area of the market,
fining the Treasury's borrowing, sorb over $110 billion of such very such as we are now being forced
Such an occur- to do, inevitably creates distorto
the short maturity area un¬ short-term debt.
doubtedly creates a bias toward rence would, first of all,; tend to tions of rates in that area; such
increase rates unduly in the short- distortions
inflation.
spill- over
and
ad/
"
.'
.
that

siderations, as well as an informed
public opinion, are primary re¬

seems

„

Soundly

circumstances
by
the
existence of the 41-year old inter¬
est rate ceiling of
on offer¬
inflation cannot be readily equal¬ ings of marketable Treasury issues
ized; they deeply injure the moral having a maturity of 5 years or

,.if the example of many other na¬
tions means anything, we would

intention to do so>
series of modest and
experimental steps.

commer-

»•

the

one
a

acceptances,-

paper,

Thursday, October 29, 1959

part

But, thanks to

growth and to our position of
world leadership.
Like the broad
issues of
foreign policy, sound support policies which were nec¬
essary
to
maintain these rates
money should not be made a par¬
tisan matter.
It far transcends during the war years, however
in significance the questions that justified at that time, did not, par¬
ticularly
after
the
war
when
can appropriately be debated on a
direct wage
and price controls
party basis.
were
removed, to nullify- mone¬
Foreign
financial institutions,
tary policy as an anti-inflationary
businesses, and individuals have a
instrument.
We are all aware of
strong practical interest in the
are,

cial

will

dollar

Perhaps

that
been

had

Reserve

Federal

singled out as the main target for
those advocating easy money.

set of circumstances?

new

mounting

was

instruments such

ket

inflationary

the

result-

gold reserves.
This need not happen and we do
not expect that it will.
ing

there

because

evidence in the last Congress

This is not an easy task, but we.
raising
when
interest rates decline.
On
figure bebeve that it is mf much more
the other hand
the holder
has
of $78 billion to over $110 billion
manageable proportion than many the
right to demand payment at
in October, 1961.
i
observers assume.
arjy time CO days after issue with
The problem which the Secre¬
f'
I would say here that we have 110 ioss 0£
principal. This gives
tary of the Treasury faces is how no intention of trying to go as
savjngs Bonds much more the
to prevent this from happening. far as
Canada, for example, m character
of
a
savings account
Over the last few years, we have
attempting to restructure the debt. ih
f
bond
In addition
the
been able to live with a short- There are
very go_pd reasons why
term debt that run's in the neigh¬ such an extensive,
plan, involving holder oi an E bond may postborhood of $70 billion; the liquid¬ about 40% of their national
debt, pone paying any income tax until
ity needs of the economy seem to would not be practicable here, final
redemption. With the exjustify a short-term debt of about The Secretary has indicated to the tensions of
maturity that have
that size.
If liquid instruments Congress that, when we are
able, ,
granted
manv
holders can
were not provided by
the Treas¬ through removal of the ceiling, beejn SraDteci> man> vomers can
postpone redemptions until a time
ury, it seems clear that they would to enter into" an advance refundbe supplied by other liquid mar¬ ing program beyond the
five-year of life when they may be in a
.

„

Volume

190

dumber 5894

The Commercial and Financial Chronicle

(1809)
lower

tax

bracket

subject

at all.

Therefore,

because Savings
Bonds by their nature more near¬
ly resemble savings accounts, it
would
est

the bonds

closely

should

than

to-the fluctuating

show

that

pares

average rate paid

with
the

over

terest

dividend

rate

downward,

[Savings

Bond

the

The

nation

and

York

for

nation

not

.tive

plans Oct.
branch in

new

241

East

42nd

John

'should

lems

the

and

site,

which

Deposits
Cash

ex¬

solve many

the

beset

•'

Chase

•_

Manhattan

its South-African

Chase

Bank

f- '•

k,;

a n

is in

The

bank

Total

1,705,884

$4,194,803

$4,088,133

209,089

608,353

1,960,537

1,682,571

due from

S. Govt,

security

holdings

■

•

;• 9

•

380,650

750,599

450,115

when, we havesubject' to official approval by the The New York Agency of Bank
.had
to
finance
a
$12b>
billion South African
Government, called Leumi le-Israel B.M. (in transla¬
'.deficit
in
the
recovery
period. for
Bank
of
Israel,
temporary quarters in Radio tion: > National
-Problems such as the 4*4% ceil¬
City Center, Foreshores, in the' Ltd.) was officially opened at 20
ing, the competition our direct
Cape -•-Town
financial
district Pine Street, New York City.
government obligations meet from
Permanent "quarters wall be lo¬
Dr.
Foerder
also
announced
other
quasi - government obliga¬ cated In * the
Africa Life Building the
appointments
of
Gideon
tions and tax-free bonds,
are, after now under construction in ThiStrauss as Agent and Theodore K.
all, the result of legislative enact¬
bault Square in Cape Town.
Landau as Assistant Agent.
rather

than

economic factors.

"enactments

•

Some
the

serve

The

these

fice

American

people well... Some of them, like.
the 4V4% ceiling, do not.
' " V- ■
Prudent

financial
'

fundamental

management
of
our
affairs—a basic condi-

first

Chase

South

Johannesburg

George E.
Harris

Manhattan

Africa

was

A license to conduct the Bank's

New York Agency operations was
issued to Bank Leumi last month

Feb. 11, 1959.

Becker

and

elected

were

of¬

opened

James

by G. Russell Clark, Superintend¬
ent of Banks qf the State of New

York.

Vice-Presi-.

John
of

:Jt

William

Franklin

the

Hooper,

Lincoln

President

Savings

Bank

Brooklyn, New York died
A

-poeple to achieve it.
We are entering what is being
widely forecast as the most pros.

period

•rperous

tory.

entire

our

Within the next

: we
can virtually double the
ducing capacity of America'.

.will
:

new

base to meet
•well

treble;

vanced

demand which may
We and other ad-

nations

will

sharing

know-how and offering a
helping
hand to the 700 million people in
22

creating some 35 to 40
jobs to take care "of
expanding
population.
We
have to develop an
energy

million
will

pro¬

our

his¬

years,

countries who have

ical

won

polit-

independence in the past 16

years.

These are dazzling opportuni¬
ties. Barring a serious worsening

-In

the

international

-believe these goals
,

—but

only

formed

public

attainable

have

opinion,

1 and the courage

-financial

situation, ;l

are

the

in¬

will,

Oct.

which

are

es¬

sential to healthy and sustainable
-growth.

appointed

was

ager in

1953
President in

;

address

Mi'. Baiid before the
Stockholders'
Meeting;
Federal

Annual

Reserve Bank of Boston, Oct.
15, 1959.

way.

i[i

■

Chemical

s'i

$100,000

Charter
the

Bank

lease

for

its;

for'

«
,

St.,

Trust

companies to

international

operate

field, ' it'

Oct.

Com¬

The

two

the ' Federal
of

them,

Guaranty

for which
25

(a)

Banking'

the

of the New York Stock Exchange
and other leading
exchanges, an¬

•

that

William

Morris,

associated with them
registered representative.
now

Mutual Funds Inv.

Corp.

DAYTON,

j
.

Ohio — Mutual Funds
Investors Corp. has been formed
with

offices

333

West

Street. Robert E. Kuntz is
cipal of the firm.

First

prin-

instruments

as
our

tional field,"

Philip
*

ner
'

help

intended
serve

in the interna¬

Mr. Alexander said.

"They will give us added flexibil¬
ity. Through them, also, we will
develop further connec¬
with

financial

institutions

abroad, giving our clients greater
there

access -

which

they

the

local

frequently

funds

desire

obtain."

serve

Trust

RHODE

ISLAND

HOSPITAL

TRUST

CO.

PROVIDENCE,
.

R. I.
Oct. 6/59
June 30/59

328,053,006 315,179,723
279,505,874 279,900,984

banks

47,054,349

42,542,203

U. S. Govt, security

holdings
Loans

——

discounts

Undivided

80,429,043
80,147,350
177,416,708 171,111,376

profits—

.3,524,907

K,.

3,315,163

Nickerson,

President

City, N. J. announced Oct. 21 that
directors

the

bank

had

proved, subject to favorable
sideration

regulatory

shareholders

agencies,

the

ap¬

con¬

and

author¬

ization and issuance of 31,000 ad¬
ditional shares of common stock.

Shareholders
will be given the
opportunity to subscribe pro rata
the additional $25 par value

for

shares at

price of $53 per share,

he said.

the

Federal

Re-

Board is required for forma-

4):

Hartung, limited part°/
Harris, Upham & Co., proval of

passed away Oct. 10.

are

be able to

Approval

Philip F. Hartung

clients' needs

tions

and

The First National Bank of Jersey

companies

office of the Comptroller of
Currency to the First National

the

Valparaiso, Valparaiso,

Porter

County, Indiana. The Pres¬
Wayne Stoner and the

Cashier

Claudon. This is

conversion

First State Bank

Valparaiso, Valparaiso, Indiana,

take

effect

bank has

Oct.

10.

The

capital of $110,000 and

surplus of $808,302.

The

:!:

common

capital of

stock

The First National Bank of Dick¬

inson,

North

Dakota,

from $100,000 to $200,000
stock dividend effective Oct.

two New York State
companies. Ap-,

the

Banking Board is required for

ac-

bring the bank s shares

outstanding

220,000

and

will

increase capital funds by $1,643,000.

Capital and surplus will each
increased

$5,500,000,

and

'• *,

■

right

City

National Bank

ton, Iowa,
capital

increased

stock

$600,000 by

its

from

for

Clin¬

outstanding
value $25).

diyidepd ef¬

24,000 shares, par

—

•
ijt

Four

officers

ijs

and

five

directors
elected at the organizational

Miami,

Fla.

President

Buker,

each

Edmund

rants

the

International

and

Bank

opens

Terminal

Jack M. Copeland was elected
Vice-President and will head the

exchange

operations

Shareholders
Buker

Bank,

and

also

Robert

confirmed
of

the

Hesterberg
as
Senior
Vice-Presideitt, v posi¬
tions they held
during the or¬
ganization of the new Bank.
Mr. Eckert

Vice-President at

was

while Mr. Copeland was

Assistant

Vice-President

same

for

stitution.

the

Directors

Mr.

Hesterberg,

the

Airport Bank

Buker

who

in¬

include

then

held.

subscribe, evidenced

which

are
being issued to
Capital Stock, expires
9

V-'.U

been

a
member
of
the bank's
board since August, 1955, and suc¬
ceeds the late Samuel J. Craw¬

ford

who

died

suddenly

Sept.

15, 1959.
"-4

The

opening of banking offices on
Midway and Kwajalein Islands
Oct.

announced
of

Hawaii,

Both

the

Honolulu.

offices

opened

Oct. 1.

•

Buckingham
Freight Lines Stk.
Issue Offered
An

underwriting group headed by
Cruttenden, Podesta & Co., on
Oct.

offered

value,

250,000 shares of

common

stock,
Buckingham

The

proceeds

from

the

offering will be used to
bank
and

par

Freight

The price is $10 per share.

loans and
for

other

general

stock

pay

off

obligations,

corporate

pur¬

poses.

Buckingham
Freight Lines,
principal executive office
Rapid City, S. Dak., provides

with its

President

one new

Ralph W. Kiewit has been elected
Chairman of the Board of Santa
Monica Bank, Santa Monica, Cal.,
according to Aubrey E. Austin,
Jr., President.
Mr., Kiewit has

the Airport Bank.

Mr.

Capital

Nov. 2.

early

November.

foreign

its

of Oct.-15, the

seven

holders of

Eckert, Lines.
senior operating of¬

when

Calif,

by transferable Subscription War¬

class

Vice-President

was

who will

ficer

announces.

Elected
Cashier

Charles

common

$500,000

stock

holders

Stock at the rate of

Hawaii.

subscribe at. $38.50 per
260,106 shares of Capital

share to

Bank

'9-'

Stock of record

was

value $100).

office to

Bank, Los Angeles,

offered

ing—2,000 shares,

and

Mr.

Presi¬

also

are

scheduled

regular
nine

motor

and

northwestern

Canadian

service

irregular

over

routes

states and the

provinces

Alberta

and Saskatchewan.

Giving effect to the current of¬
fering and application of pro¬
ceeds, capitalization of the com¬
pany
will consist of ,$5,260,982,
funded debt;
250,000 shares of
class A common stock, $1 par
value; and 250,000 shares of class
B common stock, $1 par value.

In the fiscal year ended April
30, 1959, operating revenues were
and
earnings
after
Bank; James G. Garner, President $13,561,446
of the Little River Bank and Trust taxes were $557,452, equal to $2.12
Company;
W.
C.
Herrell,
and per share on the 250,000 shares
of class A common being issued
Hugh D. Lalor.
9
9
9
and
to
$1.11 per share on the
By a stock dividend The Alabama 500,000 combined class A and
dent and Executive Vice-President

Hialeah-Miami

The

National

Bank

Alabama,

Springs

Montgomery,

its

increased

shares,

par

value $10).
9

class

Forms Inv. Co.
HOLLYWOOD, Fla. — J. Gordon
Katz is engaging in a securities
business from offices at

Street

Eugene

Adams

H.
of

President

the

Denver,

elected

was

National

First

Colo.,

John Evans who

Mr.

resigned and

since

President

when
Co.

the

was

Adams

has

Aug.

Interantional

merged

with

under

the

^043-Hayes

firm

Investment* Services

Co.

name

He was

formerly with Walston & Co., Inc.

succeed

elected Honorary Chairman of

Board.

shares.

common

capital stock from $600,000 to
$700,000 effective Oct. 9. (Number
of shares
outstanding — 70,000

Bank,

Completion of the proposed of-

^er

«'

15,. (Number of shares outstand¬
par

14th

offices

Union

in¬

was

creased

the

•!*

Corporation, would be

"Those

stock

Act, often Total resources—
Edge Act. One Deposits
Cash and due from
called Morgan

International

company;

Bank

$2,128,820,
divided- into
212,882 shares of
common stock of the par value of
$10 each.

delphia Trust Building, members

.Jr. is

capital

nounce

with

The Hialeah-Miami Springs Bank,

Section

National

Company
of
the title "The

under

National

sought would be

the

Oneida

Trust

Reserve

Com¬

of $1,963,820. The
effected under the

companies

under

Trust

and

The

and

formed

common

Company of Central New York,"

an¬

Henry

Oneida

Alexander, Chairman,
authorization

issued

was

stock

and

Utica,

in the

was

Bank

was

charter

Oct.

meeting of The Airport Bank

of Utica, Utica, N. Y., with

merger

pany of New York has requested
approval of the banking author¬
ities for formation of two subsidi¬

nounced

$200,000, into The Oneida

Bank

ary

certificate

common

occupancy

Guaranty

President

Ilion, N. Y. with

pany

summer.

Morgan

and

approving and making ef¬
as of Oct. 9, the merger of

National

branch

new

issued

was

re¬

Board.

The right to

Vice-Presi¬

of Ilion,

long-

....

Merger

Trust

office to be located in 80 Pine

scheduled

Sav¬

stock of

York

Co., New York has taken
term

Lincoln

The Manufacturers National Bank

New

JJS

«»•'''

has

supervi¬

in San
Francisco, 13
Bay Area, and one each
in Portland, Ore. and Seattle and
Tacoma, Wash. "

$200,000. by a. stock
dividend effective Oct. 13, (Num¬
ber of shares
outstanding—24000
shares, par value £100).

—

Oct. 9

■

National

Bank of Brookville, Ind. increased
its
common
capital stock from

were

fective

•

'■

in'1949
9

a banking
other,
Morgan
Kidder, Peabody
Guaranty
International Finance
PHILADELPHIA, Pa. — Kidder," Corporation, .would be an invest¬
Peabody. & Co., Fidelity-Phila- ment company.

With

He" will

the

executive

Assistant Vice-

1958.

1950.

Assistant Man¬

and

fective Oct. 16. (Number of shares

of 63.

age

became

dent

charge of the branch at 25 Broad¬

referred to
♦An
*

Mr. Har¬

ris, who joined the bank in 1947,

to maintain sound

policies

1951.

the

Trustee

ings Bank of Brooklyn since 1943,

1946 and advanced to Assistant

Vice-President in

County

the

two

and Trust Company
Cumberland" effective Oct. 12.

of
.

The

;

tion of economic

well-being in all dents of The Chase Manhattan
.free
countries.— is certainly not Bank, New York. Mr. Becker will
.beyond our reach. All
that Isr be -in charge of the Metropolitan
; needed
is a-, public understanding Branch at 33 East 23rd Street.
He
of what is involved and
a. deterjoined the bank in 1929. He was
.mipation oi>;the part of our entire appointed an Assistant Manager

Bank

be added by The Bank of Cali¬
fornia during the past five years.
At the present time, the bank has

National

•

ments

approval

This will be

Bank

ident

State

Cumberland, Md.
changed its title to "The First Na¬

Bank

600,133

profits—

plans,

First

Dec. 31,'58

banks —l——"

COMPANY,

Oct. 6,'59

Deposits
and

1,052,571

.I:

YORK

resources—

Cash
A

office

present

18,252,727

;

•:

Undivided

said

20,801,907

NEW

Cape Town.

The

(South

new

discounts

THE CORPORATION TRUST

that,

Ltd., will open a second
branch in the Union of South Af¬

rica in December.

Africa)

the

21,301,840

20,240,810.'

security

holdings
&

8,449,253

and

Cumberland,"

The
0,828,238

U. S: Govt,

subsidiary, The

Manhattan

just passed,

ryear

and due from

banks

Undivided profits—.'

New York announced Oct. 2i

prob¬
in

resources.:.

Loans

•,

good years to offset
occasional bad years,

Oct. 6,'59
June 30,'59
$51,947,404 $51,018,930
47,948,538
44,882,272

Total

Avenue.

branch, which is

new

of East 42nd

corner

Second

Federal

the

Streets, it was announced Oct,
by Elliott McAllister, ^hair-

Statutes.

Jeremiah

and

UNDERWRITERS TRUST CO., NEW YORK

office in New York City.

The

strong and producUnited States should

that ' have

Newman

tional

105th

our

The

pected to be opened in the early
part of 1961, will be the Bank's

serious problem in carry¬
ing a debt the size that we-have.
:A balanced
budget, or at least sur¬
-deficits

St.

man

California

San Francisco branch office
corner of Sutter and Stock¬

at the

provisions

lease

The

pluses in

Company, Ilollidays-

banking authorities to estab¬

sory

ton

struction"

the

.have

ceived

in accordance with the applicable

quisition of their stock by Morgan
Guaranty.
"
\ 1
.j.... 9-

{■'

Bank

title
of
"Hollidaysburg Trust
Company," effective as of Sept. 11,

Bank,

space

problems

'pessimistic note. ."That is
intention;
/'

the northwest

concluding

lish

J. Wolf were named Vice-Presi¬
has
been signed
for
in the 32-story Pfizer World dents of the Bank of New York.
Headquarters Building under con¬
A

the

many

announced

opening

Street
so

Manhattan

Treasury faces, both currently
for the long run, that it
may

[appear that I

Chase

New

may

whereas

rate

have cited

Revised Capitalizations

•

The

burg, Pa., under the charter and

Denies He Is Pessimistic

the

NewOfJices.etc.

•

guaranteed
for the full term of the bond.

t.\

New Branches

•

of Mar-

burg Trust

Consolidations

by savings institutions, particular¬
ly since the savings account in¬
revised

Martinsburg, Pa., with
common
stock
of
$75,000
was
merged with and into Hollidays-

3com¬

favorably

Bank.
At the time of
the merger Mr. Adams was Presi¬
dent of International Trust Co.

tinsburg,

Our statistics

rate

very

National

rates

The First National Bank

"marketable bonds.

capital including
approximate $14,-

will

900,000.

BANKS AND BANKERS

to the rates paid
institutional
savings
rather

effective

reserves

that the rate of inter¬

seem

total

: NEWS ABOUT

the

was

the

beer.

1958,
Trust

First

John J. Keegan Opens
TEXAS

CITY,

Tex.— John J.

Keegan is conducting a securities
business from offices at 425 Tenth;

The Commercial and Financial Chronicle

(1810)

AS WE SEE IT
:

deal. There is

complex about the
need for greater freedom in placing long-term obligations.
It is badly needed, and as a practical matter at least it
must be clearly understood throughout all those sections
of the Administration which have any responsibility in
the matter. This demand for a budgetary surplus in good
times is, however, a gray horse of quite another color.

of the most disturbing illusions that
prevail among the neo-Keynesians is
that public expenditures can in the nature of the case be
turned on and off like a spigot. Experience in the most
recent
recession
should
convince
even
the
doubting
Thomases that in this practical political world such is
simply not the case. Easy and quick manipulation of Fed¬
eral expenditures is not even theoretically feasible, or so
it seems to us, at least without a type and degree of fiscal
looseness which so far has not found great public favor—
and should never find it. Large public expenditures, if
they are to produce any sort of lasting asset take time to
plan and to execute. The outflow of such funds is more
than likely not to begin in earnest until after the recession
they are designed to cure is a matter of history at which
time it may be about as unwise to cut them off precipi¬
tately as it was to begin them in the first place.
The first and

often

•;

;■

seems

one

Many current concepts of fiscal management seem
concern about facets of
good pub¬
lic policy which do not necessarily reveal themselves in
current surpluses or deficits. In other words, concern

also to show all too little

far

seems

current

too

much

centered

the matter

outlays exceed income

of whether

vice versa. Naturally,
this is one of the vital aspects of the matter, but it is quite
possible to have a ruinous governmental financial policy
at the

time that

surpluses

the rule. Too great a
governmental channels
can be
very harmful. Even in the surplus years—such as
there have been in postwar
years—this cardinal sin has
taken its toll with great
regularity. We need more sur¬
pluses not by taking more and more from the public in
taxes but by
reducing outlays which serve no good public
purpose—and their name is legion in this day and time.
same

diversion of current

Non-Budgetary Items

are

income into

Another factor which is all too often overlooked

Where all this will

ignored is the inevitable effect of governmental policies
which are not included in the budget or in
ordinary financial figures of the government in forms
which are likely to be seen and understood
by the great
rank and file. Of course, the astronomical future liabilities
under the social security
program are familiar to the

government can stand at the helm and keep the ship on

probably not to but a very
big impact of these undertak¬
ings will naturally come at a later date, but the fact is
that the scheme now
helps the Treasury greatly in financ¬
ing its requirements today—and thus tends to lessen the
pressure which otherwise might exist to proceed more
prudently.
•
"
Other
non-budgetary programs have and have had a
direct effect

current conditions and current

prob¬
for example.

building trades. The

question is certainly an open one as to whether such pro¬
this are not as essentially inflationary as public
expenditures of funds acquired by borrowing—that is

grams as

deficits. But

inflationary effects are not the whole story
means. Many and serious problems have arisen in

the economic

sphere by reason of movements which have
been made possible and even
promoted in this way.
A process of "suburbanization" as
it has been called
has been under
way in this

country for several decades.
Population, in other words, has been
becoming more and
more

cities
some

has

resident

suburbs

while

the

so-called

central

have been growing at a much slower
rate,
instances not at all. This movement of

brought

ment at

many

problems.— and called

oil

Continued from page 1

nessed, because of the collapse in
the incomes of many corporations

to aluminum; and the impact of
an unusually long steel strike on

merely subdivides
outstanding

the number of shares
the

ratio
that
a

stock

the

20.

investor

any

dividend

con¬

the

cash payment, and
shares he had received

the

mind, he would have
doing
fundamentally
the
thing as he would by selling
5% of his holdings in any other
company and considering the pro¬

variety

fields,

from

same

ceeds of the

sale

"dividend."

final two months of tjie earnings of some companies,
On a cash dividend basis, the
Adjusting for this latter A.s things look today, the Aug. 3
current yield on the Dow-Jones
development, it is obvious that high for the Dow-Jones IndusIndustrials is only a little more
stocks reached a peak in popu- trials will be equivalent to a little
than
3%.
This compares with
larity in 1929 once they were more than 18 times this years
yields on high-grade bonds of be¬
selling at around 17 times the rate earnings for that group of stocks,
tween 4.5%
and 5%. ; Assuming
of earnings being enjoyed at that which I still believe will be m
the neighborhood of $37 a com¬ that dividend payments were to
time.
be increased, on the average, by
posite share.
10% before the end of 1960,-the
The Post-Crash Unpopularity
The Present Near-Peak
yields at current prices would
Swing
From this point of view, the still be less than 3.5%; while a
By 1932, stocks were so very
20% increase in average dividend
unpopular that they were" being stock market must be considered
the

during

that year.

priced,

the

earning
below

cash

The extreme decline

share,

per

in the

cycle,

peak in the

1929-

disbursements

640-680 yields

the

range. It might be worth noting
that this statement is valid even
if earnings during 1960 should

many cases,

assets

being at or near

popularity

demonstrated

and in

power,

net

less

average,

times

three

than

would

bring stock

to about 3.7%;
During
(and/or long-term) buy¬

cyclical

ing levels in the past, stocks have
been available

yield basis of

between

V/> and 2 times those
much as 10% to
available
on
high-grade
bonds.
15%,. since the market has already
It is obvious from the foregoing
reasons, but this should not blind
"discounted" a $40-$42 level of
figures that unless the bond mar¬
us to the reasonable
possibility of earnings. (The 1946 high of 212

increase by

1932

period is not likely to be
witnessed again for a number of

bear market from

the

magnitude

nessed

those

number

for the Dow-Jones Industrials was

time to time

ket

other

were

not exceeded for four years, even long
can
though income by 1948-1949 had

wit-

stocks have a
decline before they

soar,

way

considered

attractive

conservative-

purchases, as judged
risen to a level of more than 40%
above the 1946 totals. More re- by this approach.
general
cently, in 1957, earnings rose by
m
prices in relation to average or about 9% above those of 1956, but
The Business or Earnings Outlook
"normal"
appraisals
of
basic this did not prevent a lower range
A little thought) wilk show: that
values. (It might be recalled that of stock prices in the latter year.)
including "1937-1938.
the
development
of
complacency and
high

occasions,
following

the

popularity of stocks in
in

due

was

1929
part to the fact that

are

now

see

full

downward swing in the

pendulum
of
popularity - unpopularity
of
equities, the majority of stocks
could decline by 40%-60%. This
would ntft seem unrealistic, as it

were
then being told by our
leading economists that the Fed-

eral Reserve Board had proved its

while

stocks might appear, to be
high in relation to current earn¬
ings, they could still be considered
reasonably priced if the earnings'
trend were sharply upward.
Un¬

fortunately, it is always danger¬
ous to project any recent trend in
tions at higher ratios to demon- earnings very far ahead — par¬
in 1924 and 1927. We were also strated earning power than have ticularly when productive capac¬
told at that time that stocks would been witnessed at almost all of ity is in excess of consumer buy¬
permanently command a premium^the important cyclical lows in the ing power or effective demands.
Because of the importance of psy¬
for scarcity, in view of the num- past 40 years!
ber of investment trusts which'
chology in the stock market, it is
also well to keep in mind the fact
were
being formed, and because *
■
ability to prevent major business
recessions because of the prompt
response to the easing of credit

larger

number

still

could

leave

quota-

average

had

shown

increase

During the
the
common

hews

business

1936-37

Stocks

Confidence

Rise

part

the

upward

This

stocks.

common

The

fact

very

speculative securities frequently

became very popular in

Payments ior P^rne time ahead
ings .reported during these periods. Furthermore, since those who are
earn-

tryl"g. to. ^dluenee the ^ stock
J22I
ifhv
high rate °f letum offered by
e/luities as a reason for buy g,

this

period, the rise in the
popularity of equities was also
in

large

measure

had found

nrovpntinf

of
of

con-

way

piopaganda

the

mninr

business

major Hpplinpc in
declines in
activity, with this confidence being supported by Presi-

sniitea

dent Roosevelt's statement in late

even some

preventing

....

had

the

case

0 111 p

a S 1 S

"potential
capital
things stand today,

of our institutional in-

vestors who started to buy. stocks
™ithm the past 10 years piimarily

you

just happens to be
planned it that way."

been

Sains.

business

good.
As

lel any"eU

' DonT

1930:

experience that one of
guides as to business

safest

prospects may be found in the
relationship of current production

^ef?

the

almost 17 times the rate of

based

the

early 1937, as shown haVe the
^SSLP?1C-Cni^e,-.r^e" to consumption, taken together
fact
that
they
again' vanf1es» evefJ ^
with the level of business inven¬
^ 2?
a
level
equivalent to pect of substantial dividend tories.
The two are interrelated,

reached

It is my

due

the

that

late 1.936 and

because they had been available
at double the yields obtainable on

every

of course, in that inventories rise
when -production,
exceeds
con¬

sumption, and tend to keep on in¬
creasing after business activity
turns downward.
On this basis,
stocks were definitely in vulner¬
able territory by the spring of
1956

time

when

the

Dow-

Jones Industrials first reached the

The net rise in inven¬

520 level.

tories since last January

indicates

that production has been running
above

consumption

least

lines for quite awhile.

some

previous cyclical peak, we were
also being assured
of well-sustained and rising activity in the
capital goods field—without anyone seeming to
realize that such
expectations are always influ-

bonds, are still favoring equities
over fixed-income securities a9
a result of the shift, in ^emphasis
t° the theoretical appreciation
possibilities versus actual yields,

enced

necessary

not

find a period when dividend pay-

The

strikes.

by the trend

market

during

the

preceding

ing stocks had become

the

mately

recent

was

this

selling
of

year.

this

the

group

times

projected

high-grade bonds for

stocks

the

failed

rather

this

as we

that any subsequent
are

quite

smaller

overproduction

and

early

lines, which

leading to price competition fusion
„

certain

than

were

though

repercussions
to

frequently

much

those

30s, for obvious

There

copper

sulted

the

reasons,

some

con-

this question of yields

strikes have re¬

reduction

business

inventories, in some lines, during
the past 90 days, but the evidence
points toward rather adequate in¬
ventories in all fields which have

affected by

been

Keeping

the current

in mind the fact

that

consumption has been abnormally

high,

than subnormal,

rather

judged
in

rise

have always stated,

into

many

months. This is
even

take

overcapacity in

period of

realize,

As things have turned out,.
estimate

steel and

popular

frightening,

gen-

for

almost

$40

was

that they were yielding less than

Dow-Jones

earnings which
being

account

are

high of approxi-

for

680

Industrials,

erally

record shows that it is
to go back to 1929 to

The

of the stock

months.

rate

upon govern¬

that it is easier to sell stocks when

Stock versus Bond Yields.,

institutional-

is good, with
swings in
the reverse being true when pes¬
in interest in equities following
stock
popularity
simism as to the business outlook
the
publication
of
Edgar cycle, there
is a progressively
•
Lawrence Smith's book "Common greater tendency to ignore yields is rampant.
/
'
Stocks
as
Long-term
Invest- in appraising both the risks and
Prospective Overproduction
ments.")
profit possibilities in individual

investors

level or another to expend vasLsums in
pro¬
viding highways and other public services. As a recent
study shows, and has all along, of course, been rather
evident, this draining away of potential
population into
the suburbs has
given rise to "slums" in the larger centers
one

dividend

stock

sold

population

equivalent of cash
dividends.
Actually,
of
course,
this is grossly misleading,- since
a
company
that declares a 5%

been

that

any

by
.

with this in

branches of business which

guarantees or the equiva¬
lent. These funds have
naturally flowed quickly into those

statisticians

dividends of up to

the

as.

sidered

fidence that

the

10 %

equivalent of

Take the various
housing programs,
Billions of dollars have been
put into the hands of millions
of individuals which would not have flowed
into these
channels but for governmental

serve

the ' Dow-Jones

extent

course,

lems.

because of the encouragement
consider stock

keel is naive indeed.

even

few the country over. The

ultimately lead, the future only

Thursday, October 29, 1959

„

and programs

matriculate—though, of

another

one way or

tell, but he who thinks in these circumstances that

can

Can Not Be Turned On and Off

;

nothing obscure

finance in

large housing developments to replace so-called slum
dwellings, which is another drain directly or indirectly
upon the public purse, - " ■
;
*
;

ably true enough, but we can not suppress a suspicion
that the Administration itself—excepting certain of its
advisers, o& course—has no adequate understanding of the
factors and the forces with which they are undertaking
to

and induced government to

(Continued from page 1)

there

the

extremely

indebtedness,

consumer

would

seem

sharp

just as

great a danger at the present time
in

projecting

rising

trend in

business activity over the

to 18 months

ing

similar

spring

there

was

projections

1937.

Rising

next .12
in mak¬

the

business

activity was.similarly projected in

Number 5894

190

Volume

The Commercial and Financial Chronicle

(1811)
the summer of 1957 when the prer

for at least

another

There will

12 months.

nine-to

which

there

market

itv

steel

men

determined

are

imme-

ments

"permanent"

I would

mend

-that

invest¬

hesitate to

recom-

reduce

anyone

very

cyclical recovery, subsequent

any

developments
which
conceivably cancel all of
the implications of the
approaches
f credit are ,dismissed as being
correlations
between
a
change--—r
"•
A.
* outlined herewith.
over
from
government
deficit unimportant. Actually, the initial
However, in studying any op¬
spending to. at least-a near-bal- advances represent
primarily
a timistic predictions being dissemi¬
anced budget (as in 1937) can; be
nated at times such as the
cancellation^ of
previous downpresent,
when stock prices are high from
ignored, it \\pu)d seem rather
war(j *' moves- in interest charges
an
dangerous to look for a resump-■-?
■ *
■
historical standpoint, it is al¬

SECURITY SALESMAN'S

his

holdings of equities to below the
40%-60% level, except

strike, of course, but unless

business

decline

not

holding

ate^y f° 0W1 S
eases l t e temporary and frankly specula¬
Federal Reserve Boards redis- tive basis. I believe the investor
count rate during the early stages should also continuously review

in business activthe ending of the

following

does

tern-

porary recovery

outlook

business

ward
v

market

view was-that the;
vis jfreaue Mly "a great deal of conactivity would-be up^ ' fusion^ t. Just because the stock

vailing
of

overbuild
inventories
as
they ditTiiv 1957, and unless past
again

increases which reflect

tightness

new

CORNER

BY JOHN

DUTTON

might

Putting Some "Sell" Into Your Tax Exempt Story

...

.1
>

...

tion

boom.

the

The

interest rates have

•

in. the past 18 months

JqoJ
1924

•

while

confidence

much

as^point

effect that such changes in charges
of money have on the

use

level

the

prevailing

dur-

business

e^jier

activity

■

;

•

Reserve

Federal

This is another

the

Policies

stock, market,

has

been

sign that "the party is about over."

The following

approach to the

table

will

illus-

appraisal of the business and stock -trate this point.

From
r

Range 1st Q

Indus.

High

(close)

Subsequent

6%—February, 1920*-—_

103- 90

6%—August, 1929

380-333
110-.86
208-201
294-285
521-496

31,2 %—October, 1931—
1%—April, 1946

________

2%—Jariuary, 1953
3

%—August, 1956

31/, %_May, 1959
♦Assumes
been

that

tXovcmber,

19'i9

basis

1917

low

FRB

the

been

had

ing Peak

;

82- 73
214-191

64
411
41
162
255
419

678
set

that

duction

any

hear

ment

of any experienced investor

who

has

firm

con¬

With taxes what

two

the

peaks touched

by Dr. L. Albert Hahn in his

you

easily

when

they

Net

only

are

459-437

both factors

and

speculators

price.

the

Securities"

Bargains in the Bond Market.
study they highlighted what tax exemption

any

fect

behavior

becomes

cents with

investors

from

seen

tabulation,

going

the

tells

fore-

be
three overlapping 10 year cycles,
with one of the^e calling for a six

past,

the

without exception, the Dow-Jones

Industrials

;

have: lost

all

ter

calendar

the

ment in the third

quar-

ing

the

cyclical

any

rise

the

double

•

touched

level

fourth year

taking
heard.

$10
Tax

ion is useful

only for the purpose
against rather than in
agreement with it.
Investors
of

the

business

ade.

cyclical low.

Exceptions to this experience

often consult the broker.
no

than

unit

one

leaders

the

'■

;

increase

the

quaintances.

their ac¬
forget' that

among

They

S1<25'*

that it is time for extreme caution
in
;

the

stock

has become
tral bank

market

had been

rate

by. 100%.

once

the

^ important exception

!10^s .°¥.i>)5lr
!n
m

increased

ci^rent lmplica? ™,?3 ^as

^ie 1948-1951 peuod. The rise
stock.prices indicated lor- 1948,

Named
Thomas

Phelps,

Economics

and

Departments,

Socony

and which normally might have

•

stock
we

whether

this

continues

market

should

now

pre-

likely to be the
^"i^
final low, or merely the first* (or- ]
L he were
second)
downward "leg" - of va
a,,^CQ.ndhe would fight
more important cyclical readjustment.
(It might be noted in pass- .profns;*ta;Kps and othei semi bo
ing that in my talk before the New ^lahstiC;policies.
s a result, the

taxc^ancf'other semf-So-

York

alysts
in

Commercial

tioned
then

that,

low,of

approach
"probable bear

roughly.

advance

the

390-420.Toth?'extent
10

The subsequent base for the 19581959

«nd this composite group

th^ /I

•

mind
416
•

.
/

The Time Cycle

We
of

are

near

placing our discussion
forecasting "tool"

the end of

factors
know

•

market

this

because

our
we

group

not

that
•

this narticu-

PaiVcV

signal

double-

has

In bringing this paper to a close,
I want to emphasize that there is

hedge against the ever
possibility of an overly

field, and I would
suggest that tho-e m+ere<=ted in
pursuing the subject further look
into his recently pubi''sh°d book
and

Business

single approach to stock market forecasting which has a 100%
"batting average,"
In order to

ative

bias

times

present

conserv-

such

the

Briefly, this approach sufficiently attractive to warrant

stocks

can

be considered

1.47

1.53

2.50

3.11

2.63

3.29

.48

.59

.66

2.02

2.52

1.97

Yield
rieia

3.96

.82

.99

2.47

2.97

$50

to$60

90% BRACKET

$150

„

$200

m to

"
.

km
(A)

from
From

'^^^T^taxable Income-*

„*

-'.t

•

income

taxes

*3.50%

4.00?o

4.50%

»l«il

35.00

40.00

45.00

3.00

2.13

2.58

2 58

2.58

.87

.42

3.51

3.00

2.13

of.

(B) remaining after taxes

of Taxable Income-*

-I'-Via,

4.17

4.84

4.11

4.77

5.44

must

.88

1.04

1.21

1.03

1.19

1.36

2.63

3.13

3.63

3.08

3.58

4.08

—

such

must

average

annual

gain (C)y

you

him the lion's share of that income after you have taken a
big risk
with a box full of common stocks that would have to double in

from 18 to 37 years

(as outlined in the foregoing table, depending
your bracket and what you received in tax free income)
equal 3^%, 4% or 4^% tax free from some good bonds that's
another story.
'
*' - '
•>un"
J
'•
*
to

I have not stated the

Ohio — Paul D.
joined the staff
of Joseph, Mellen & Miller, Inc.,
Union Commerce Building, mem¬
of

bers

the

Midwest

Stock

complete picture as it is as well portrayed
study. Nor have I outlined some

in this excellent E. F. Hutton & Co.

has

attractive yields possible on A, AA, and AAA bonds that
offered. This is the kind of fact finding and information that

of the
are

thoughtful

Ex¬

investprs are beginning to take seriously these days.'

change.

Prescott Adds to Staff

Daniel Rice Adds

Joins H. O. Peet

(Special to The Financial Chronicle)

Ohio —Gilbert

CLEVELAND,

Midwest

Jr.

has

added to
Co., Na¬
City Bank Building, mem¬

staff

been

Prescott

the

New

Stock

York

and

Exchanges.

With Campbell, Robbins

CHICAGO, 111.—Nicholas M. Lam¬
bert

has

become

affiliated

with

Daniel F. Rice and Company. 141
West Jackson Boulevard,
mem¬
bers

the

New

York

and

Mid¬

west Stock

Exchanges. Mr. Lam¬
bert previously was with E. F.
Hutton & Company.

KANSAS

PORTLAND,

Ore.

—

Eugene T.

Porter has become associated with

Robbins,> Inc., U. S.
Building. He was
with Walston & Co.,
and Zilka, Smithers & Co.

Campbell

Inc.

Bank

Bache Adds to Staff

members

CLEVELAND, Ohio — James D.
Craig has been added to the staff
of
Bache &
Co., National City
East Sixth Building.

of the

Exchange.

—

John P.

New

was

York Stock

formerly with

Lehman Brothers in New York.

Dempsey-Tegeler Adds
(Special to The Financial Chronicle)

ST.

(Special to The Financial Chronicle)

CITY, Mo.

Jones has joined the staff of H. O.
Peet & Co., 23 West 10th Street,

(Special to The Financial Chronicle)

formerly

Cycles.")

Joseph, Mellen

Millenbruck

National

some

3.00

1.47

1.53

$18 dividend in the $50,000 pretax bracket, it is all the same.
along piling up dividends for 12 months
and then you turn around next year and find out that
you owe

(Special toThe Financial Chronicle)

present, and because the outlook

Stocks

3.00

1.47

1.98

(C),

double in price in this many years..,

CLEVELAND,

for

"Common

3.00

1.02

1.98

But when you are going

;

tional

of work in this

(Mr.

■

3.00

1.02

your

econ¬

duPont

bers

Conclusion

years.

and

3.00

1.98

upon

Joins

Schafer,

over the past 200
Edgar
Lawrence
Smith has been doing a great deal

well

Journal, and
Weekly,
-r—
to his association
Mobil, Mr. Phelps

partner

9.57

get out of any investment is income after taxes.
Whether you take this income every six months by
clipping some
free interest coupons, or you have $4.50 left after Uncle comes
along and takes his bite out of your $7.26 in dividends you received
in the $10,000 pretax bracket, or only $4.50 after he
clips you on

Washington Bureau

Francis

- •

the

ahead,

subject

All

Barron's

with

economic developments during the

immediately

gain

stock

Street

prior
Socony

period

really

yet

Co.

check more fundamental factors,
it tells us that greater emphasis
should be placed on bearish rather
than
bullish
interpretations
of

of five

just why this particular approach seems to work as
as

„

Dow-Jones

the

general

was

omist

eainmg» at any time in 1948, 1949,

men-

with

about LineTimesThe current year's

Sept. 5, 1957, I

called.for

market

reported
Financial

Just

annual

To achieve

Wall

Editor

average

together with the net dividend
equals the tax free bond yield (D + B

Canada, Ltd., it has been

4.50%

8.51

which,

his graduation from
University of Minnesota, Mr.
Phelps
successively
was
City
Editor of the Minneapolis Journal,
the

equal the tax free bond yield (A),
an annual capital
gain (C) of....
which would be subject to capital gains tax of.,
leaving net capital gains (D) after taxes of....

Following

Chief

Bond
tsona

In order

the

there

announced.

An-:'-D®^:Jo.n^.Illdu^rlals "ever sold

Security

Sept. 3, 1957,

the

Chronicle

•

Society

Fund of

such

double in price in this
many years...

must

Free
free

Board of Directors of the Scudder

the

hold,

achieve

and the net dividend

Company, has been elected to the

with
to

4.00%

7.45

3.00

dividend,.

of.....

3.50%

7.26

1.02

3% cash

taxes

(B) remaining after taxes

4.50%

6.45

Oil

been expected to continue into the
pared for a decline in the Dow- s,umn}er or A
?, ' ?
r.\°
Jones Industrial Average into or develop,
and the setback witbelow the 430-460 range recorded nessed following the outbreak oi
during the first three months of war in Korea m 19o0 proved to be
1958. ' Once that level is reached/<?f very,.brief duration. This action
a
substantial rally will probably-S3?- ^accounted foi by the fact
be witnessed, but it 'would seem ^hat
confidence declined veiy
wise to hold up decisions as to sharply in the summer of 1948, fol-

income

dividend

net

4.00%

State and Municipal
Obligations
,..../ 3.'50% 4'.00% '4!50%
Equivalent Taxable Yield from
•*.'">
'
Corporate Bonds, Preferred & Common Stocks... 14.00
16.00
18.00
Typical Common Stock Equivalent
If a stock yielded a constant 3% cash
3.00
3.00
dividend,. 3.00

of
Studies

Mobil

From

DESCRIPTION—
Tax
ix

manager

Special

subject to

53% BRACKET

$18 m to $20 m
z-of Taxable Income-*

75% BRACKET

Scudder Fund

(A)

stock yielded a constant

stock

<_•

since 1900 to the

money

correlation

past

•

tight that the cen-

rediscount

"margin of safety'* in this„ "rule"

Yield

equal the tax free bond yield (A),
there must be an annual capital gain (C) of....
1.88
which would be subject to capital gains tax of.,
.36
leaving net capital gains (D) after taxes
-1.52
which, together with the net dividend
equals the tax free bond yield (D + B = A)

have been witnessed, of com se, business leaders, with few excep¬
rate early last month to 4% from
hut with the record showing that tions, are always surprised by any
the' 3^2%
level prevailing since
decisions seem to reversals of tendency." :
May '28—when, it' was brought up cushion .pf exaggerate the cyclical
♦An address by Mr. Gaubis before the
to double the 1^4,% 'dharge touched
fwings but not prevent them al- Thursday Investment Club of St. Louis,
in the saM^K.;i958^-pip^s together — except on rare occa- Oct. 22, 1959.
The

written

In order to

He, too,

Others consult the so-called

mass.

Bond

and the

acting

Free

$12

m to

/-of Taxable Income-^

State and Municipal Obligations..
3.50%
Equivalent Taxable Yieid from
Corporate Bonds, Preferred & Common Stocks... 5.65
Typical Common Stock Equivalent

united opin¬

well

in dollars and

38%. BRACKET
DESCRIPTION—

of all they have

To ascertain

this

this:

the

an average

late in the ninth year of each dec-

in the rediscount rate to

following

peak,

means

Taxable Equivalents

Some people think they

enhance

of each decade; another sharp sett¬
back in the sixth or seventh year;
with the third decline starting

preCetl-

year

appear

the to 12 month downward readjust-

gains enjoyed since the first

there

that

table such

general,

great number of experts and then
will

discounted in the

are

objectivity of
their conceptions by consulting a

time.

Seriously, the majority of people don't know how much 4%
sans tax
actually means to them. The Stock Exchange firm
E. F. Hutton & Co.
recently issued a bulletin entitled "Selected

market

gains

minority forecasts.
opinion about
developments and their ef¬

soon

can

stock

lead

they do when
only time most

get the panning they deserve but always with the reservation that
should be patriotic; good old Uncle needs the dough.

book "Common Sense Economics":
"It
is too
often
and
too

that

in¬

you hear stories
that your friend Joe Zilch had to borrow
$15,000 at the bank in
order to have funds for his income tax
payments. The radio and
television comics get active and for a few weeks the tax
eaters

suggest further always
keeping in mind the observations

can

today, it is amazing that

they collect dividends that are taxable. The
taxpayers holler is around April 15th. Then

would

overlooked

are

way as

1946; and defi¬
nitely less pessimistic at the sub¬
sequent cyclical lows.

forecasts

they

vestment films do not stress the tax
savings that are available in
municipal bonds for those in $10,000 to $12,000 net income bracket
and upward. Ads appear and state that a tax free
income of 4% is
available on good bonds.
But to the majority of investors
they
still think of this tax free 4% in the same

record of having turned defi¬
nitely cautious at around at least

1929, 1937,

turn,

articles about the attractive bonds that are
available, alert invest¬
firms and salesmen begin to look
up some merchandise
and offer it.
' *.

the

one

attention is being paid to the 10c dollars
which
for money someday. When public
psychology begins
and investor interest is aroused by press notices and

may use

personally

victions opposed to my own, pro¬
vided that the individual can show

and less

rec¬

counselor

or'

future

1!)!).

was

the

anxious

162-152
276-258
420-390

check

always

the rediscount rate would have

of other interest rates,

Low

;^,..:106
; 381
117
'
212
291
521

644-616

——

the

less

Year Prececl-

proponentk^of

the

bullish point of view.

made

Cyclical Low

Dow-Jones

Rate Increased to:

Periods in Which the Rediscount Rate Has Been Raised by 100%

ord

ing the previous cyclical low point

conclusion/

support this

economy

to be overlooked that

desirable

ways

double

concern about inflation is
rapidly deflating. The bond market
becoming a more respectable place to put some savings these
days. You read about it in the press and the financial
publications.
It looks as if the cycle is
turning more toward some income pro¬

business

low ebb; The

count rate has been broughtqip to

from. 1954 to 1957; and the

the

past, whenever the redis- views

for

was

seems

iaoQtlie~/^'"Cinv the
1929,. and in the three^

to-

years

which; .developed

that

fact

risen

The

dell

LOUIS, Mo.—August J. Sabaand Cathryn M. Will have

been added to the staff of Demp¬

sey-Tegeler & Co., 1000 Locus^
Street, members of the New York
and Midwest Stock

Exchanges,

(1812)

The Commercial and Financial

•

of} VIH
RJCi V

f\T\Cl I iOflTl
lllgO CtllU. XJUCill

VyllVAXXX^

„

but

other

stock

exchanges, banks and so
*orth. It is hoped that a program
Will
be devised,
educational or
otherwise, which will bring home
to taxpayers their duty and lizbility to report this type of in■come

accounts

terest

the

where

in-

or/dividends

-entered but

have been
paid out in cash,

not

certain

devised

cannot

program

which"

•

and

senators

con-

sylvania

cta0

tu0

Washington.
such

groups

Pressures U

^^-,1^4-^-1n

X-JVy^XkJXt* v±\sx
..

,,r

continued from page 14

business,

come dangerous.

lj02nSl3XlOn

Pnninsf

r
X

bank's financial situation has be-

and

P^nn

The State

its

regUlation

and

supervision

savm^Qandrioan asso^ than mere financlal soundness
^avi"2s_banks; and prescnbe what they as gov-

I^nnsy l vania,a+u. s. vis;

kasn^Vn^^mrl
to

shareholders

std^er^ai^^d

savings a:nd loan asss0Sia^°"
valid and proper anci aia n
the approval oi tne reaerai n
Loan Ba"k

consider

test

vision

ciaj

government

should

only protect finan-

SOLindness.

What

the

business"'a
pusiness a

im-

apply to all corporaindividuals? Is it mutual-

the

savings

oublic
public

the -protection

safety

itself in

-ernment

interest

bonds.

Needless

such a program
-Quite expensive.
Another

solution

would

l*3ay,

Congress adjourned Sept. lb by

sunrise.

the

creed

that

This

should

opposed

would

©nd

have

business.

loan
the

passed

•nature and is

•fjnterest

bill

This

President's

rate,

the bill

desk

for

sig-

probably of no great
savings associations

raised and

was

stalled in the Senate,

was

finally cleared by the
^Democratic Policy Committee
was

©Iter its effective period

~"~Stea

lim-

was

on^-hal|\ years,

meantime

the

j[n

and

one

the

Federal

-Home Loan Bank Board is to sub•rnit

Congress

study

degrees

are

soundness

based

financial

something

lawyers
measure, but con-

substantial

determinations.

tion of

the decks

Washington

the

Although eifcrts were made to
persuade Washington to increase
the rate earlier this year, the request was-denied. As it developed,

trial
and
interest.
In 1903,

and

error

self-

;'",./

the railroads imposed
themselves the Elkins Act

upon

designed

eliminate

devasting

intra-industry competition.

public
■that

interest

the

-vision

and

super-

State

banking is pri•madly a matter for the banking
department of the various States,
Another bill

desk

would

directors

Ixxm

Bank

occasioned

the

Board

Union

Alacka

President's
the

number

the Federal Home

risco
to

the

increase
on

San

the

'the

Fran-

addition

States

and Hawaii

Another

American

bill

the

sponsored

Bar Association

would

greater protection to the nri-

4nve

mort*ae€s

oritv of
©nd

loan

?ough!/d

held bv savings

assodations

It is hoped

Con»re^maSn SIt fw
York

has"

introduced

this

ses-

-svstem

with

Fedtral

Home Loan

had

introduced previous bills

but

none

tmnn

jand

ceiling, banks had
Then

that

most

savings

and

loan

inai.]ic^

ievej

without

told

railroad

recently that he did not
why the board of directors
me

meet

since

their

all

determined

were

for

^iem by the government or the
l^bor unions. The railroads have
demonstrated themselves to be

Xaws

onto

St-te

«r

the

Bnn^f

<?r-r.

loan

-ttt

i,*

permitting

•

Dividend

control

itself

"?tm-

tiend ^ lot
"cuu ;s

t0~"

Ploljlen,s-

con-

the

State

sunreme'deitv

and

and
a

time,

bring

we can

our

means/together.
The
crisis can be softened

even removed.
„

„

Budget-Making Process

Senate

committee

recommending
have

little

House

responsible for

taxes

penditures.

but

voice

Other

they

over

ex-

Senate

and

consider

and

committees

.vote lor

subservient.
„,.nmpnt
ernment

become

As stated by

gov-

renre«en+afUm

legislation programs and

cases,

offshore in foreign

very

association,

one

corporate form of organization the
best jh 48 States. Savings and
Joans in the 48 States varied very
sharply, and no particular form
or corporate setup predominated.
As

result

coupled

with

arose

this divergency,

the

time

were

prescribed,

expensive merely

but

r»aep«

also

that

rp.

ons

only

for

the

■

+•

these

^me doeg

iook

iegisiative

our

af-

budget

wh0le in terms of expenditures or
in terms of prospective revenues

when spending
measures

and debt

revenue

acted

are

upon

dif-

say nothing ferent/committees
at-/different
about the under-priced loans ^mes one can
expect only chaos
which are dished out, some of and
"'overloading the donkey "
which are never repaid. They in*

yolve pressure on_ Uhe ITreasur^
raise money.

Many programs

helpful if the

united

States

gurea

0£

*£v°^ve contingent liabilities Bmeau of
They help exp am the fact that
people here and abroad, are

some

bf.g^"l"y ta wonder aboat \he
plight of the Treasury and the-in*
The Interest Rate Situation
rates

have

may go

abroad

itS
as

6.61%. The

a^e^ould sub-

way

perhaps

once

the revin sight and the prospective
m signt ana tne prospective

enue

cllue

responsible manner, just

risen

higher, both here and
Sa\lnMs a,re refunded
!ir
month Canada
uanaua

the

expenditures, so that Congress
would be forced to act in a more

*epritv of the dollar

interest

Treasury

3udtIe+ would sub

LaS
of

some
some

reiunaea

our

family

as all of
business bud-

gets must weigh expenditures in
the light of revenues in s.ght.
•

,B.ahck-door financing (avoidthe appropriation procedure)

u
tng

yj?lds Central js an<>ther irresistible approach,
%s
The launching of new programs

Canadian

and enlarging existing

ones is the

main cause of the Treasury plight,
Congress fixes by law "certain

»///,// /'/-///,P»/te Street," the Federal Reserve or the funds.'"S—ty wherever he^Administrahon
f/J. these high
Is

I»«earin« Competition

ft$ C°'?"
specific
are

not
un-

looming
.

on
,

the

horizon.

have

stepped

°f activit^v' mutual funds
steady
increases

un/onVhave
bounds

where

the

would

their

made

Federal credit

supervisory authorities
? situation has sarings
the
point

The

lianks

le_

kody

acts

to drastic penalties

coordination of the

Sfs is/n^ttemn/to^of' Perl,aps P°utl'*»ns
I I

stab/

national bank legulation and
the concern is with

mX^in^vSin
mitted in \iolation
//

f,°"

nntimni

reacned

with

whole.

seif.interest

^ ^ the Pli"Ci,Pal rm"
rponiftw 1 ?3
l.n 111 savlnSs and loan busithlp !nniv fine print, ness is, at the moment, intrafinancial institution6 °
industry, formidable opposition is

•

final

regula

not

Even

the

benefit levels to which citizens or
,Pnmc commercial paper >»«i e or states or cities are
* '
(four to six months) has increased entitled by right. Laws fix farm
president of the Savings from a rate of 1.5% in July, 1958 benefits,, veterans'benefits, public
Association League of New York, to over 4% recently.
assistance grants, hospital grants,
111 bls report recently, mentioned
This rise in interest rates will sewage treatment grants, educarukngs and leSal opinions with become a major political issue in tion grants in 'impacted areas/
wbljch the League disagrees and 1960. The fiscally irresponsible maritime grants, highway grants.
gressive

exrpprliitP

other

have

a"d others who don't aviation grants and many others.
} attempt to set up a per- like to pay for what they get or The beneficiaries apply and the
.CL^system from the standpoint what they would like to give to appropriations committees usuloTnTL? °f the govei*nme»t rather than to the voter are accusing "Wall ally have no choice but to supply
fact

emerppnrv

Sn EL'il'/1
tion,

Committees

authority in appropriating funds,

'"^ administer, and to

monin

involving

federal

tion

pro-

throughout the world and

ma/a/ement rig^?

and

of-law,, proceeding

attempting to consolidate in

mutual

A few conversions

ning these almost countless

Federal savings and loan asso- continues on and 'is what Ts
pro- Bank rediscount rate reached 6.4%
ciations were created in tiie midst tected, not the manager This conAllgl!st' althouSh ours is only
of an over-all national depression, trasts sharply wfth our
Amldcan
6° "tgher. The
«>ey were an entirely now type devotion to
individuality and ag- gi/Imeia-e at commercial banks is
of savings and loan

.4.

associations

occurred

rate

i",.Thf B„vernm/!
But tK government
suvclim,CIU

State-chartered savings laws.

-savings banks.
iiave

threat of

again

AfinrJIfni1111!? °D suPervJsion,

the"books

vcrsmns of

and

BirUr

J1 decislve policing and
"yteide^ence from courts
J ® state authorities. In

ad-

//„//// /v'/'tner4 ZZt'rof?

regional, state and local ofBees scattered across the land and,

bothered

recourse.

considered

you

and

Problems

because

perpetual loan at

grams with offices in Washington

the

and

like to borrow

run-

see

of them have been acted

tt-io

the

sunprvisirm

It is perfectly obvious that

the

rate

N™

interest rate.

zero

market

the
the
savin J
/Tliensv delul/d' Sler^nd

that hearings wRl be

would

you

lands, is all

over

rigid Federal

the Interna-

Reconstruction

Development, which has
string of subsidiaries in being

in many

establishing

regulation

for

and

problems. A director of

the nuroose of which is

svsiem of
jTvsfem Of the United Slates in the
States

strong
private

country.

ends

numer-

They
went from this step to what was
tantamount to
government
ad-

mitting that dividend rates should .1

strengthening of the dual banking

Fund and

Bank

ministration of their management

seek their own market level!

Xtel^-we

strong

* An address by Mr. Heisler before the
lX"pSiadd8°Na y"
of New York.
'
'''

programs in the field of
education. In the field of foreign

could get

-im

.stated to be the preservation and

Federal

Administration, the

rates paid by
banks on savings
accounts fell steadily behind"the

are

^Fwi1SiffklifiJif1tiict

opera-

shelved

moment,

association.

enterprise

and

error
and
on
individuality and ment programs offer bargains that policies. There is no
coordination,
Commissioner Clark yesterday self-interest. There appears to be are irresistible, and it is almost
even within the House or within
suggested that rate ceihng control an industry trend to supplant impossible to meet the
demands, the Senate to look at these proshould be brought out into the this with a perfect system where for obvious reasons; to see the
grams as a whole.
Furthermore,
open and discussed.
there would be no
mistakes, no point, just ask yourself how much the numerous separate
Appropria-

own

the

industry

this competition. This is probably country has been built is waste- pending.
By offering loans at bethe most persistent single pressure ful, inefficient, based on trial and low-market
rates, these govern-

fact

appears

freedom

action in its decisions

loan

0us

tional

being associations
are
mutual.
Equal
•cleared for early Senate hearings
consideration is to be given the
»ext year with one side arguing
member investor as there is to be inePt
in dealing
with
outside
llmf
the Holding Company BUI
given the member borrower.
competition.
should be regulatory and not proHow can vou argue that interest
In a Perfect system, quick ad•nthifivp as it b r
it is now and the other
"T
vubitne
1cai\/ou dl8uo tnac interest ministrative
w, ana tne ot ei
Heei^ion«
ra|es should properly seek their
X? decisions are ie«ide arguing for divestitui e.
;

erans

Monetary

clamor from

industry lor regulatory
is
true
that
the
private
statutory devices to control enterprise system upon which our

this

situation.

and reguiati0n

in-

except for the battle that arose.,
"!This bill had passed the House
First, I should like to point out,
twice and the Senate once within this connection, the difficulty
out objection except in committee
confronting commercial banks as
•searings. Then in the Senate on a result of the 3% filing imposed
ihe last go-round, a stock versus
on savings deposit interest rates,
•mutual argument

there

objective.

management

...

national mortgage association, the
Federal administration, the Vet-

of Federal control. But control^

within the

■Congress include one prohibiting
•fcrMing companies in the savings
on

dividend

recognize

this

enable

reasonable

While the Administration is re¬
cr&ased tempo of promotional ac- and courts can
affairs we have the Department quired
to bring out the budget
tivities of certain managers over trol on the basis of what govern- of State
making loans, the Export- projecting expenditures as well as
the past few years, and the change ment administrators consider is
Import Bank, the
Development revenues, the Congress has no such
of the incidence of competition best for the industry is a govern- Loan
Fund, and of course, we are unified approach.
from that outside the industry to ment of men and not of law. I members
of
the
International
Now we have a House and a
intra-industry competition,
has know of no way to measure such
caused

that

•

rnrmietition

Increases in

Other Bills

bills

/-'••—,/

beyond

have

loan

and

utilitv or
utility or are
are/,.what socialists

enterprise control?

Pressures to Regulate Competiti n

acquire
reporting
of
dividends
tsaid of $100, or another figure,
instead of the present figure of
$600. This solution would not be
•nearly as burdensome as a withJholding requirement.

Other

/——,"

Vl_ccl1t_c

in-

the

stitution, and discouraging stat¬
utes, regulations and supervision

the payment of

argu-

financial

the

soundness

the

applied across the
iaanks, corporations, and

and

associations to federal d.^ocia- we striving for
lions. This was interpreted tooe adv0cate, that government control
board-.-to approval only as to corporate 6yer all phases of operation is Continued from page 15
the gov- form.
better
than
individual
private housing
administration,,

*>e

involves

and

an example
although besieged
by low prices and a waning economy. There are a few others, not

not

taking.
limiting
supervisions :to

are

solution

regulations

"Necessity is the
infringement of

freedom.

would

event,

The

are

legal

basis for further regulation that
wouW

that the
industry by its
prefers
the easy
appear

loan

road that most

or restrictions on a principle basis rather than by measuring them by need or immediate
good to the individual. Farmers

super-

would

and

election

own

every

A few industries have

This substantially broadens the

many.

of necessity. William

said

ment of tyrants;
of slaves."
-

public.

^a? concept that

iiaclf

Borf

administrators

the

Thursday, October 29, 1959

savings

regulations

[l bef1,^or the lndustJ7- or the subsidies
or
the

loan

from a Federal savings a"c
association

t ernment

human

Rather

one

for

State-chartered .savings- aim wan
State-cnanereci savings anci loan

such

Home

has

•^r.d
/-and innn associations and related
loan nc<;nc in firms nnd related
.institutions withholding require-

Federal

Pitt

tjons

•'nehts.

the

upon

off

and statutes on a principle basis
is treated by the industry as old
fashioned.

industry" itself ' have posed is

loan

precedent..thereto. The State.law
required the appiov^l of the btate
Commissioner to conversions from

irom the savings

ciations into mutual

/J1

position to seal themselves
from outside competition.

Loan Bank Board to S° further plea

nfomte

law ioi/the conversion oi>.iaie-

chartered

Government

control

pressures

called

furthering

But

productive of
results, there is a possibility of
cm attempt
to impose on savings

think

pressmen

Consideration

And

J.X11VA

IlllSlTlfiSS

Chronicle.....

gcown

sn
.

and
not

loan

appear

thit

;

associations
to

any

the

primary

cause

Cong/s-

What

Action

can

be.done

restrain

sional spenders and Congressional government growth-over-growth.

S-Pon^Sf^theP^t

high interest rates than
group in the country.

any

other

^Si^izs
the

functions

proper

ment

must

also

j/1/! 'n (i) The
pro^rtion?

tn® Vongress is recxiess ana is not
willing

to cover its
with taxes,

programs

?-P ™ a seiio1LJs
tional as well

expenditure
we may

end

cris.is'f witb na"
international

proposer

nrogram

govern-

increase, roughly
of

Con^rpss

any

new

should

required by the rules of the Coh-

Sress to include as close
mate

the

tax

costs

esti-

tins-

repercussions.

I?bt. By Sle. the Con/SsMd

If we are "overloading the
donkey," then only if less essentional public and private spending

be required to debate

and

government

investment

programs

are

irell

the costs

the merits of the program
has been defined as

Democracy

by discussion. If all

Volume

Number 5894

190

;

The Commercial and Financial
Chronicle

'
(1813)

the

facts

arebrought

openwewill get

the

into

The country is still strong,

^better govern- our institutions
(Was there any
Let me conclude

ment.than silence.

•,

are

with

some

con-

discussion in Congress or the press
of. theritax cost of the new labor

soling thoughts from the sage from
Baltimore, the late H. L. Mencken

act .passed

(the preface of A Mencken

1959,

;to. bring de-

to labor unions ?)

mocracy

tomathy):

i:l-\ <2) If a.program is Of "'the nose
in. the tent"/ type, this should be

Chres-

Even in
any,
war

agreeable,

-'Those who explore the ensuing

known

another,

life

taking
it is in

safe

and

T"\

one day with
These States

great depression few

by a

certain ribaldry,

they

discuss topics commonly regarded
as grave
I do not apologize for
this, for life in the Republic has

always

farm-support programs
10 or 15 years ago, it is doubtful
that these programs would have
grown to their Dresent scandalous
grown to their present scandalous

seemed

far

comic than serious. We live in a
land of abounding quackeries, and
if

not

loam

lnno'h

predominantly tolerant
Then Mencken

skepticism
«-RUt

admit

expressed

about

an,i. omrrat.

race of
with-alarm. I have had ton

eond

relation'and "programs: A specific
committee .in each house should
these

receive

perhaps
monthly, arid they -should be discussed
and

for not

frequently

the floor of the Senate

House

hour

reports,

less

than

uplifters

and
coh-

Cw™. «y to earnings and for the full

0^o[ ge"f
outlook gets

—

S app^'Ts 25

too
too

were

•

flourish. -In

whole.

self

with

"center

financial

other

*The New Yurk

8,1959.

Times, New York, July

Government

are

JrrOSDGCtS
4^

organization- of
committees
in
Congress is such that a series of
several

different committees

deal

with particular parts of the fiscal

but

adequate median-

110

HPl-*

■

lOF ^11

A 4-

XXCX U

XldS

whdle

'the

llldllStrV
«X

gdicon

the

such

~s a result, the cheapest metal
ls jn°re than ^ever the most verneglect > of^^■which -satiie xnctal-of all*- ; :
"
your family or busiWe have funneled increasing

and

capital

goods,

about $150

freight

car

new

We have poured billions of dollars into modernization, in addition to the money we have spent
on
expansion.
As a result, we

1959

Federal agencies to support
budget requests until the
House Appropriations Committee
has completed
its recommendaby

have

their

efficiency,

tions

and

House of

its

made

report to the

Representatives,'At this

ing

made

our

substantial

gains

But the proof of steel is

testing.
stand

key factor in improvearnings picture.
a

in the

How did the industry
under pressure during

stage1 it is usually^ torilate^-ior-iKe
public or its representatives to
an opinion which
can have

use

practical impact.

quarters of 1953

the recent'recession?

Again, let's
Republic as an example.
Taking the first
and
second

form

base—a pe-

(6) Government research groups, -riod when we were operating at
taxpayers associations, chambers better than 100% of capacity—
of commerce, trade groups—citi- our income before Federal income
zens generally, should so
organize taxes was 15.3% on sales.
In the
themselves that these' problems two worst quarters of the recesbecome

sion of 1954, operating at 65.6%

some

a
clear-responsibility of
individual, division or committee, in order that there, will be

continuous

publicity

study/ reporting' and
government

non-essential

and

waste,

less-essential

expenditures,
and
particularly
new
and expanding government
programs; it doesn't do much good
to preach economy in general. But
by organizing to do something
about it, and focusing responsibility, much can be accomplished,
The

case

do
the

pressures
masses;

not

hopeless.

come

masses

The

from

never

the

make

*'•

gratifying

but it is only

the steel industry has learned to
keep on its feet when the going is

step in the

larger factor

up-

Maintenance

go away.

lightened. The talk
.

crisis can

The

case

be made to

is not hopeless,

the Tears ahead with great
tations.

expec-

All signs point to a rec1960
We anticipate

ord year for

that Gross

National

Product

will

stocfc;

•

T^4-*l

IlJX I
J

Q^OCK VjllGrGCl
£jrm
writers

0£

Bateman^
as

under-

Oct. 26 offered 200,00(1

expenditures

[ng it

head'on.

In Republic

industry

steel

I know

nearlv'

in the
everv

businessmen

ceding year and further reduc- design, development, manufacture
tions are anticipated this year, and sale of specialized electronicBased on the latest figures of 12 equipment for the telephone, commonth results, passenger revenues munications, aircraft, and guided
now account for only about 2.1% missile
industries.
Well-known
of gross revenues'.
companies doing business with
Frisco controls 71% of the Cen- Airtronics include: 10 of the opertral of Georgia equities.
These ating companies of American Teleholdings are expected to be placed phone & Telegraph Co., General
in a trust with an independent Telephone & Electronics Cor?.,
trustee.
Court rulings
have Electronic Communications, Radio

Corp. of America, General Ej£Ctrie, Westinghouse Electric, The
Martin Co., and others. Airtronics^
has also entered into contracts foi
the manufacture of equipment and
penses.
It is estimated that for component products for the vari1959» the ©QuAy *n undistributed ous branches of the Armed Forces.
earnings of the Central of Georgia
Outstanding
capitalization ok
should total around $1,800,000 or the company upon completion o».
$1 a share on Frisco common.
the financing will consist of 753,stopped the company from working more closely with the Georgia,
Particularly with respect to the
elimination of duplicate facilities
which would save operating ex-

...

on Jan. 12*
acquired att

common

the

AlriiOlllCS

snrpc

monetary

company

______

The

in improving Ltd., Palm Beach, Fla.,

Throughout this worst recession , d
m are charting tomorrow's
©f the postwar years Republic did r»ro"ress—not onlv for their stockpressures come from key individrelax its standards of quality holders and customers- not onlv
uals and organized groups. These and service.
We did not renege fo
their employees
but for the
must be identified, analyzed and on our obligations to employees
American wav of life
the strength of their case assessed,
or stockholders.
And, thanks to
'
Often the problems they stress can the efficiency we have been able
*An address by Mr. White before the
be met by private or voluntary to build into our plants, we made National Association of investment ComFrisco also owns 50.03% of New
group action
If so
counter-nresmoiiey«
This was a fitting climax p»™es, Oct. 22, 1959.
Mexico & Arizona Land Company,
miKt hp An.Jnnpj
l,..,
to a decade and a half of unprecwhich has interesting possibilities
s
sm
tb
developed, based on edented
progress,
and our exWith DiRoma Alexik
over the longer term.
The Land
facts, sound analysis and logic, perience was the
rule, rather than
Prv»»rT1I
Company owns over 623,000 acres
with skillful presentation.
the exception throughout the in- pnDTATrrTPT t-.
in New Mexico and Arizona and
dustry.
SPRINGFIELD, Mass.—Adnenne retains oil> gas and mineral rights
Epilogue
•
Having achieved this degree of D. Kendrick and Richard C. Healy, to about 730,000 acres of land
We have been
"overloading the efficiency and stability, we can Jr. have joined the staff of Di- formerly sold.
donkey." He needs a rest and to look toward the opportunities in Roma
Alexik & Co
1387 Main
As of July 31» cash and cash
of

conse-

public demands, unless their position
is
abruptly reversed. Thri

have his load

and

has shares of the common stock oZ
ward trend of our economy if we continued at a high level.
It is Airtronics International Corp. of
keep our wits about us. We must significant that bad-order freight Florida at $1.50 per share. Thocontinue to raise efficiency and cars were down to 1.7% on Sept. shares were offered'as'a speculaimprove, business practices. We 1, one of the.lowest ratios in the tion.:
; •
'^V.Vr :
must work hard to develop our railroad industry.
Progress also
Proceeds from the sale of th<4
human and natural resources. We has been made in reducing losing stock will be used by the companymust, steadily increase our ex- passenger trains. Passenger train- to repay an outstanding loan, ac~
penditure for research and de- mileage was reduced 8.7% in 1958 counts payable, a short-term bank
velopment. We must continue to and for the first seven months of note, and for additional working?
flght inflation. We must increase this year the reduction amounted capital to increase inventory,
our efforts to educate the public to 19.4%.
On a direct cost basis,
Airtronics International Corp. of
in the meaning of free enterprise, the
passenger
deficit
in
1958 Florida, with its principal plant
and to help them realize their amounted to $2,100,000 as com- and offices• located at Fori
stake in the profit system.
pared with $2,400,000 in the pre- Lauderdale, Fla., is engaged in the

company

project,;'revenues.

capacity, our income before
Federal: income 7 taxes
dropped — 1 think these things-will be
only to 12.3%.
In the two worst done.
During the past few decquarters of the recession of 1958, ades we have learned that no
operating at 44.7% of capacity, we business—as well as no man
is
did almost as well.
Our income an island.
We have long known
before
Federal
income
taxes that what is good for business is
dropped only to 11.6% of sales,
good for people. But now we know
To my mind, these figures are that what is good for
people is
among the most significant to the good for
business, too.
investment market today.
It is
Thi.
a
tremendonc rhallon^P
simple, incontestable proof that to businesq and business k meet-

rough.

traffic lost is that the road in 1958

had a revenue per ton-mile total
of 1.32 cents compared with 1.46

cents for the industry. It is exSot-production would be a new pected increased industrialization

011 tons*
This is

tachometers

^ the outstanding

recoI'd between 120 and 130*mil- in the service territory also will

the justifications presented

com-

Massachusetts corporation,
from Mr. Hsiung Yuan Tang, President of the company, in exchange
trucks.
Most
of
this
business for 160,000 shares Of the cornmoved at a relatively high rate, pany's authorized common stock.
An indication of the high-rated

presented
to
Congress.
Under
present budgetary procedures the
public does not receive information

the

date

corporation organized

on the
development
of
its
piggyback
service to regain traffic lost to

not only Product testing and development, but fundamental research into matter, energy and
processes, looking to the needs of
the future.

millions of dollars into research;

eleo

qUently, may not be considerecf
as actually engaged in commercial
production of any of the abovementioned products. The company
conducts its operations through si
wholly-owned
subsidiary, - Tans'
industries, Inc., a • Massachusetts

are on the rise, with a probable hauling of general freight.
production of around seven milFrisco is concentrating

(5) Congress should make the
budget justifications prepared by
Federal
agencies in support of
their budget requests available to
the public as soon as they are

budget.

transis-

product®

tachometers and transistor

several

the

lion passenger cars, and capital
expenditures near $37 billion,
Steel consumption of other industries will be up, with the possible
exception of construction. Add in
a sizable amount of steel to restore inventories of steel users to
Sood working levels in 1960, and
a reasonable estimate of steel in-

ness

other

and

electrical

semi-

has. made sample sales, of
single
crystal > silicon
and sold

....

example,

allovs

pany

(should help traffic m

for

diodes

and

radiators

in-

llvSO IT ^hryslef assembly plant at St.
Louis also

nyrar,

materials, such

indium

conductor- devices such

'-.A
,lyo1|
coming months. The Frisco curContinued from page 13
leach well over the half trillion rently is hauling eight automobiles
m°yed to meet the growing de.JP.ar^
probably around on one flat car from the St. Louis
n?a.n(J lor llfht. steelj» alloy steels>
Dllllon1
plant to Texas for an average of
s!a;illcss+ steels and other speAs for steel, the situation looks approximately $425 per flat car.
cialty steels needed by industry, extremely promising. Automobiles This compares with" an average of
,

arid

tr0n'ic

also has aided the volume of traf-

°PeninS

rnaniifad-

nrocessins .and distributing

semiconductor

C1'ease a"d Piggyback. shipments

The

J? 01111 Ci

cor'nora-i'

uusjness Qf develooing
+urine

SLiloS"!!

Grain traffic has shown

•

ism exists to coordinate their ;efforts or to see 'the picture^ as a
would wreck

Inc

tiori Organized under the laws of
the State of Delaware on May H,
jggg
intends
to
engage
in the

w"a
uary-August) advanced to $1.72 a
common share against 72 cents in
the like penod of last yeai.

XJon

consid-

ered in relation to each other. The

process,

common

per Share "» ?

•

eight ;FTaneTndustries

country

management" in which all budgetary and fiscal activities of the
Federal

Oct. 15 publicly of-

Sjtock (par 10 cents) of Tang lit--

......

could

the picture

first

City,

f©red • 160,000 shares of

—

see

York
cover

; :

the

David Barnes & Co., Inc., of New

$1 annual dividend

Revenues in
:the

Association*

York.

°"*y survive but also

available. In this way both legislative
bodies
(and the public)

(4) Congress should provide it-

indicated

■»

StOCk Offered

common

This would

rale comfortably.

••<-•••

...

„

Nat5,lirerL?Z«r* ?c£m,dt befo#r« *he
.search

of!10l5 /0 over: the like 1958 month,
such
while expenses were up 6.7%, lemountebanks in greater number
l See:
George
Terborgh,
"Effect
of fleeting higher maintenance costs.
tban any other country, and they wor^°.rate Inj01^1,•^a^> °j Investment»" This year Frisco is accruing FedclhnR to heights seldom equalled
"c,
,duc,s >s"UlU- eraL income taxes as compared
elsewhere. Nevertheless, we surwith a credit- a year
go,
but

One

they bebome

vast. army .of

worldsavers, and am firmly
vmced-that all of them
-mountebanks. We produce

ment and subsequent collapse of

willing +r»
TTr'l affected by the long rp
Triflll Q+T»10C»
nrovidL thl nniS il
strike. Agricultural products IciRg IRQllSiriGS
P^©Yides the only have provided a degiee of stabil—

the

geht liabilities,'based diY bretfioiis
legislation as well as-pending leg-

^ )

.r.:

■

ported in 1958.

and expenditures of public hibney,
arid all indebtedness; aftd .c'ontin-

nerfeotlv

that

hewers- m wLT th^
When the

which afflicts the

|fT~

S°thole°of^However reaulremert b^somell 77^000
results i>? ttethfrdaharte^ere requuemeilt b* some S1'77U'0,)0lesuus m tne mirct quarter were .

some

democracy and

^aug^wc
(3) Congress should adopt rules

"^T~"'

^Puls"Pan-TTanciSCOi
' at.nintfe-■' V
' «nWd^';U''
"•W'Ut'ttev?n4,es J11" earnings of St. $11,319,000 a year earlier.. DepreLouis-San Francisco in the early ciation charges exceed 1959 equip -

ami-

and

IT l H iSl

VX A IJUU

V *

% "

c*.

said*

cost of the

able."

when

even

K
fI Vr

~~~

vastly surpassed by the number

made

nTT1/r>IT T"nTrriTTlPI

ViXlJJIVwXXJL/.

who fatten on it and enjoy it.
'» ■ "
*
Thus my view of my country is RovAlllloel'

made

)A I)

starve, and even in a great
the number who suffer by it

pages will find them marked

evident; estimates should be
of the probable growth of
ttie program over the years. (Had
Congress been able to foresee the

A I I

2S»

M„

011lL~-

with

Keller

Co., Tnc.

Brothers

previously
y ev uu& ^

853
shares
of
common
stock,
$80,500 in 6% convertible notes,
$142,720 in 6% mortgage notes,
due in 1969, payable in ©Jaa£

monthly instalments; and $80J)0(l
in notes payable, due 111 1965,
payable in equal quarterly mstalments.
__A

White Adds to Otatt
aqaival?nts amounted to $13,320 - BL0OMINGTON, 111. — Emil J.
000 and current liabilities were
.

Securities $21,198,000.
was

Net working capital
$12,805,000 as compared with

whitp

Wichman has joined White & Co.^
216 West Washington Street.

The Commercial and Financial Chronicle

(1814)

Hilton Hotels

Debs. Offered
underwriting

headed
jointly by Carl M. Loeb, Rhoades
& Co. and Merrill
Lynch, Pierce,
Fenner & Smith Inc., today (Oct.
29) is offering $30,000,000 Hilton
Hotels
Corp.
6%
subordinated
sinking fund debentures due 1984
,

with

stock purchase war¬
offering is toeing made
in units of $1,000
principal amount
common

rants.

with

warrant

at¬

tached, entitling the holders to
buy 15 shares of Hilton common
stock at $42

share to and in¬
15,
1963;
at
$46
including Oct.

per

cluding

Oct.
thereafter to

and

15, 1967, and at $50 thereafter to
and
including Oct. 15, 1971, the
expiration

date

the

warrants.

The

units
are
priced at $1,000
each, plus accrued interest from
Oct. 15, 1959. Debentures
may be

surrendered at par in payment for
stock purchased
upon the exercise
of warrants.
Warrants may not
be
detached or exercised until

Feb.

1, 1960.

Proceeds

the industry had lost
sales and steelworkers $1,020,000,000 in wages
About $584,000,000 was also lost by the industry
head, depreciation, and salaries of nonproduction

the

financing,
and from
borrowing under a long
term standby credit
negotiated re¬
cently with the "First National
Bank of Boston, will be used for
the completion and

development

36%, of gross stocks. For reporting softwood mills,
were equivalent to 17 days' production at the curwere, equivalent to 44 days' production.

nation's steelworkers

back in the

are

mills, but

further adjustments

be minor.

steel

brass

mills

reopen.

:
.

pro-

•

•*

?«■'*".">

*:
:
:

'V1-

Business Failures at-Three-Week Low

Commercial and industrial failures

!* v All of the week's decline took place

small casualties,

among

those involving liabilities under $5,000, which fell to 22 from 31;%
1 in the previous week and 49 a year ago. On the other hand, fail-, •

ures

with liabilities of $5,000 or more edged up to 228 from 221 a %
T'&st year. Liabilities ranged above $100,000 *:

week earlier and 226

for 25 of

the

failing'businesses;'as against 16 of this ;size 'in' the

preceding week.

;;:r

;

;*; -*

'«•", ;
Manufacturing casualties dipped to 49 from 55, retailing to :
,114 from 119, and construction to 36 from 43. Contrasting increases
-during the week lifted".the toll among wholesalers to 24 from 16
1. and among commercial 'services to 27 from 19.
Most of the down- ;
turn from last year's level occurred in retailing. Failures in manu;
factoring, wholesaling^ and 'construction came within one or -two :$■
*

„

mill

industry is undergoing a quiet .evolution,
"Steel" reported. Mills are going heavily into rare metals as well
as aluminum to get away from full
dependency on copper and its
alloys.
They are also adopting more fabricating techniques.
Examples: Powdered metallurgy, impact extrusion, and permanent
mold castings.

cases

of their 1958

in the previous

totals, while "service casualties

yeSri

%7-V

Geographically/ lower tolls

.....

above

0.1%

were

••

mills

dipped slightly to 250 in ;
the week ended Oct.-22 from 252 in the preceding week, reported -1
;
Dun & Bradstreet, Inc. At a three-week low, casualties were down *
'appreciably from the 275ioceurring last year and the 281 in 1957!.
-'Continuing below the pre-war level, failures were one-sixth lower *
than in the comparable week of 1939 when the toll was 300.
*

Last week, steelmaking operations continued to register 13%
of capacity. Production was about 368,000 ingot tons.
V ;
"Steel's" composite on No. 1 heavy melting grade of scrap*
is unchanged at $44.33 a gross ton, but dealers look for a sharp
The

still %

may

orders

new

*:v'.:

/
-

any

shipments of reporting identical

above production;

above.

the
slow upturn is

ol'fing, "Steel" said.

comiiig from the mills,

year-to-date,

10, 1959. proabove; shipments were 2.1%
above; new orders were 3.0% above. Compared with the corresponding week in 1958, production of reporting mills was 1.6%
below; shipments .were 7.3% below;'and new orders were 4.2%

Carloadings should be the first to respond to renewed steelmaking as producers rush coal and iron ore to their plants.
Electricity output, which has held up well because of record
residential' consumption, will inch ahead as the steel mills swing
into full production.
.•
A slow advance is in store for steel production, which will
have the biggest impact on the economy.
Auto assemblies are just beginning to be affected by the steel..;
shortage.
If auto producers can hold out until finished steel
starts

Compared with the previous week-ended Oct.

once most of
a

duction of reporting mills was 3.3%

start perking

0.6%

were

$660,000,000.
If mills had remained open, 28,300,000 ingot tons of steel would
have been produced.
;
,
-

in the

the

duet-ion.

$3,060,000,000 in
through Friday.
because of overworkers in steel.

Tax losses to the U. S. Government were estimated at

The general economy will

Thursday, October 29, 1959

rate, and gross stocks
For

of the strike,

Because

rise when

from

rent

•

destined for commercial use, but disruptions should be minor.

were

The

debentures

Continued from page 4

group

unfilled orders

'
•

amounted

STATE OF TRADE AND INDUSTRY

were

higher than

ran

reported in only four of the

of downtown hotels in San Fran¬

nine

;In/the Pacific States,- casualties dropped to

cisco,

59 from .69, while the South. Atlantic toll was off to 20 from 27, and
the East North Central*.to 32 from 39.; Increases prevailed in five

regions, including the Middle Atlantic where failures edged to 86

Denver,

•

Pittsburgh

will

shortly toe under construction.
They are to be located in Tarrytown, New York, adjacent to the
Tappan Zee bridge over the Hud¬
Riven in Aurora, 111., adjacent
to the tollway into
Chicago, and
adjacent to the Atlanta, El Paso

son

and Seattle

beginning at 105%, plus
Sinking fund

interest.

redemptions niay be made at par
plus accrued interest. The sinking
fund is to redeem $600,000 princi¬
pal amoiint of debentures
an¬
nually, 1965 through 1969. There¬
after to
maturity it is to redeem
annually one-fifteenth of the de¬
bentures outstanding

Oct.

15,

1969.

Hotels*

and

inns with

Corp.

its

and

operate 37 hotels

now

total of approxi¬

mately 28,500 guest rooms, located
in 32 cities
throughout the world.
This includes leased hotels in San

Juan, Madrid, Istanbul, Mexico
City, Panama, Havana, Montreal,
West Berlin, Cairo and
Acapulco.
Additional
under

are

dad,

leased

foreign

construction

Athens,

hotels
Trini¬

Rotterdam

and

Amsterdam.
Hilton
of

the

owns

Corp., which
to

approximately 34%

stock

develop

Hilton

Credit

formed recently
a universal credit card

freight for the week ended Oct. 17, 1959,
the Association of American Railroads an¬

revenue

580,768

cars,

This

nounced.

was

decrease

115,635

cars

16.6%

additional

mates

the

have

been

steel strike.

cumulative

Steel
The

would

cars

there had been

loss

Based

Iron

and

the

current

week

month

actual

Institute

announced

that

the operating rate (based on 1947-49 weekly
*22.5% and production 362,000 tons. A year ago
weekly production was placed at 2,024,000 tons, or

production

based

average

weekly

production

for 1947-49.

has

been

staff of Robert G.

Lewis & Com¬
Trust
Building,

Rockford

pany,

members

the

Midwest

Stock

Exchange.

distributed by the electric light
ended Saturady, Oct. 24, was
12,762,000,000 kwh., according to the Edison Electric
Institute.
Output decreased by 99,000,000 kwh. below that of
the previous week's total of
12,861,000,000 kwh. but showed a
gain of 588,000,000 kwh., or 4.8% above that of the comparable
power

industry for the

•

Car

Output Down Sharply Owing to Steel Strike

major cutback in automobile production because of
shortages was indicated Oct. 23 by "Ward's Automotive Re¬

(Special to The Financial
Chronicle)
—

Harry Trout-

wine has
Nelson

become connected with
S. Burbank
Company, 80

Federal Street.

Joins

The statistical agency said car
output in the week ended Oct.
slashed an estimated
16%, down to 111,487 units, or

was

nearly
previous week's total when the industry had
reached its highest '60 model
weekly production of 133,430 units.
However, "Ward's" added that the industry will probably
reach about 70% of its
projected October schedule of 640,000 cars.
22,000

units

said

labor

troubles

also

contributed

the

latest

has

joined

the

staff

Tucker, Anthony & R. L. Day, 74
State

"Ward's"

said

five-day scheduling

was

predominant

car

assembly plants the week, except for two- and three-day periods
at nine Chevrolet facilities.

Production of Ford Motor Co.'s "Fal¬

was limited to three
days at plants in Lorain, O.,
City, Mo.
The "Imperial" plant in Detroit worked
only four days as did
the "Corvair" site at Willow
Run, Mich.

(Special to The Financial
Chronicle)

cott

The automotive reporting firm said a
wildcat walkout by nearly 4,000 workers at
Chrysler Corp.'s Jef¬
ferson assembly plant in Detroit limited
production of Chrysler
cars to about 20% of last week's turnout.

con" small

BOSTON, Mass.—Robert S. Wol-

Street.

car

"Ward's" said cutbacks also

industry which scheduled
week

Joins Erwin & Co.
DURHAM, N. C.—Finley T. White
has become affiliated with Erwin
& Co., Inc., Ill Corcoran St.

were

evident in the truck-building

estimated^,600 units less than last

(23,954).

The

1959

ahead of 1958

(Speeial to The Financial Chronicle)

—

■

; 51

...«*?

-v..

car-truck

production

total

date

(5,719,498)

(3,703,891) by 54%.

Lumber

Shipment 7.3% BeloW 1958 Week

Lumber shipments of 476 mills
reporting to the National Lum¬
ber Trade Barometer were 6.4% below
production for the week
ended Oct. 17, 1959. In the same week new orders of these
mills
were 9.0 % below
production. Unfilled orders of reporting mills

>
i

: •

•

'•

■

..**• ■

at Monthly Record

Row

While

the number of new business
incorporations in August
appreciably from July, the level'was the highest for any.August on record, reports Dun & Bradstreet, Inc. This was the
.

fell

fourteenth consecutive month that

a monthly record was set.. The
14,329, down to/13.5.% from the prior month's
16,562, but 17.1% above the prior August record of 12,234 set? last

August total
f.

year.

•

The

number of

sharp gain of 40.7%:

%'\v-

.....

concerns

of this year came to
-

was

.chartered for the first

•

•'

eight months

;

133,891 ,£ record for the period.

This was a
the 95,167 of the comparable period last

over

year.

The

consensus

of opinion is

that much of the sharp increase

in incorporations begun last Fall was due to the
approval on Sept.

2, 1958 of the Technical Amendments Act which provided for tax
advantages for small corporations and encouraged many small proprietorships and partnerships to incorporate.
Of course, it would
be difficult to estimate ,what proportion of the rise resulted from
this legislation and how much was due to recovery from the recent

...;

''*~T

four consecutive

price index,
the

latest

$5.86 of
year ago

|
•

« •

0>cit. 20

Bradstreet, Inc., moved

it stood

week

for

;

weeks of declines, the wholesale food

complied .by Dun

week.

Wholesale-Food Price Index Edges Up
After

earlier," the 1959 low.
decline of 5.8%. ;*

$5.89, up 0.5% from

;

the

It compared with $6.25

a
^;

Moving higher in wholesale cost this week were wheat, rye,
oats, hams, bellies, lard/tiutter, sugar, milk, coffee, cocoa, potatoes
and hogs.
On the dovVn side were flour, corn, barley, eggs and

:
»

steers.
The

index

raw

the

represents

foodstuffs

sum

total

and'meats-in general

the price per
use.
It is not

pound

cost-

of-living index. Its chief function is to show the general trend
prices at the wholesale level.
'

of food

:*'

from

and Kansas

Tucker, Anthony

>■

of 31

week's production setback.

BOSTON, Mass.

...

August New Business Incorporation

week

1958 week.

"Ward's"

With Nelson Burbank

■■

The amount of electric
energy

and

estimated at

ports."

the

recession,

steel

Randolph G.
added

,J:"

•

Electric Output 4.8% Above 1958 Week

(Special to The Financial
Chronicle)

Lundeen

•

Twenty-four Canadian failures were recorded -hs compared
preceding Week and 30 a year ago.

ago

126%.

with 56 in the

the

was

"index

Central.

For Fourteenth Time in

13.1% of the utilization of the Jan. 1, 1959 annual
capacity of 147,tons. Estimated percentage for this week's forecast
is 13.0%.

the

regions, and held even
one.
The sharpest; rise .occurred in the East South Central
^States, while the most "marked drop occurred in the West South

13.0% of Capacity

Steel

from 195& in four regions, fell off in four

cars... ;

633,670 net

production)

Year-to-year,trends.were also mixed; failures increased

~in

The first

—

these week-to-week esti¬

approximately 2,170,000

now

Output Based

American

loaded

operating rate of the steel companies will average *22.9% of steel
capacity for the. week beginning Oct. 26, equivalent to 368,000
tons of ingot and steel castings (based* on'average
weekly produc¬
tion of 1947-49) as compared with an actual rate of
23.1% of
capacity and 371,000 tons a week ago. [ED. NOTE: A strike in the
steel industry began
Wednesday, July 15.]
Actual output for the week
beginning Oct. 19 was equal to

business.

ROCKFORD, 111.

from 81.
-

Loadings in the week of Oct. 17, were 21,988 cars of 3.9%.
above the preceding week.
It is estimated that about 170,000

was

Robert G. Lewis Adds

below

the corresponding week in 1958>|»nd a decrease of 146,044 cars or
20.1% below the corresponding week in 1957.
•

Hilton

subsidiaries

Loadings Down 16.6% From 1958 Week

Loading of
totaled

airports.

The debentures will be redeem¬
able after Oct. 15, 1964 at a scale
of prices
accrued

Car

and

Portland and for the development
of Hilton Inns.
At the present
time five additional Inns are or

major regions.

"i--

*■ ■

■

*
'

Wholesale Commodity Price Index

Up Moderately Frohi Prior Week
and

Reflecting price increases on most grains, lard, coffee, butter
livestock, the general commodity price level rose moderately

this week. The Daily Wholesale Commodity Price Index, compiled
'by Dun & Bradstreet,dfic.^stood at 277:77 (1930-32 = 100)-on Oct.

26, compared with 276.25

sponding date

week earlier, and 275.32

a year ago.

the

corre-

•;

Increased

sible for

domestic and export buying was primarily responmarked rise in wheat prices during the week. News of

unfavorable weather conditions in

some

growing

areas

helped

rye

prices edge up;

purchases expanded and offerings were light.
Although supplies of corn ^ere limited, buying picked up and
prices moved up somewhat from the prior week; corn prices are
expected to decline soon as heavy receipts in most markets are
'reported.
Althbugh domestic purchases, of rye faltered, export
buying picked up, and prices climbed slightly from a week earlier.
Trading in soybeans was sustained at a- high level and prices

'
;
.

matched those of the

preceding week.
As a result bf small farmer marketings, flour prices moved
up
moderately, but; trading remained at the prior week's level. Al¬
though rice buying was sustained at a high level, prices dipped
somewhat; sizable commitments

made to Cuba and it is

ex-

pected that India will be interested in buying sizable quantities.
Although sugar trading was sluggish this week, prices were
close to the pritfT^period.
There was another appreciable rise in

were

190" Number 5894"

Volume

The Commercial and

Financial Chronicle

£L.

(1815)
coffee buying and prices were moderately higher. Increased

prompted
;

buying
priees to edge up somewhat rrom a week earlier. <-•
receipts in ChiCagb expanded this week, but were no-

ticeablv

t^-i

„

below

year

there

ago;

was

substantial

rise

in steer

Wholesalers reported

Pricesron-the

Up;

York

narrow

New

Exchange

within

moved

this week, and finished unchanged from

range

Smith

the .week

Consumer

ended

Lvnch
Inc

Co.

...

Piorro

Farmer

Kiddp'r

and

fered

Oct.

Oct;

SECURITIES

Ppnhndv

mana^crs

joint

were

o£

-underwriting svndipatp which

a week
22, purchases in the 14 major
markets totaled 451,200 bales, compared with 379,300 bales in the
prior week and 400,400 in the comparable week a year ago.

earlier.

'<■

Merrill

PUBLIC UTILITY

-i

marked rise in lamb prices.
Cotton

*'+■

0W6T-

'oOllClS (/TTPTPn

prices as trading moved up. Trading in hogs was appreciably
higher, and prices climbed moderately from tne preceding week.
The salable supply of lambs climbed noticeably and trading
picked.

jj lOTlClcl

cocoa

Cattle

first

& Light
bonds, 5J/4%
1,1989, at 101.519%

and

Buying Moderately Exceeds Year Ago

accrued

5.15%;

Continued cool clear

weather in many areas stimuated con¬
buying this week, offsetting the growing effects of the steel
Over-all retail trade was
up moderately from the similar
1958 week in the week ended Oct. 21; with the most noticeable
gains in men's and women's apparel, furniture, and new passenger

interest,

Award

the

yield

to
bonds

was

won

strike.

by the group at competitive

sale

sumer

held

of
y.

Oct.

its

bid

100.43%.

The

Cincinnati Gas & Electric

mortgage

series.due Nov.

Cincinnati
pany

able at general redemption prices
Appliance sales were moderately oveh a year ago, but dealers
ranging from 106.77% to par, and
in some cities reported limited supplies,
'
yy at special redemption
prices.startthe week endedv ing at 101.52%
and declining to
ago, according
par, -plus accrued interest in each
Inc.
Regional y case.
estimates varied from the comparable 1958' levels by the following
Net proceeds from the
cars..

financing

for

Central

to;+4; South Atlantic —4 to 0."v.uyu- <; y.
V# purposes.
in sales offwomen's sportswear and moderate
company's
1959-60
construction
increases in coats and suits helped boost' over-all volume
in % program will approximate
$153,women's apparel moderately over a year ago; .purchases of dresses v, 500,000 of which about
$72,500,000
and fashion, accessories also showed appreciable year-to-year gains.
will be expended in 1959, with
After several- weeks of sluggish activity,.'the buying of men's y
$39,254,000 spent through July 31.
apparel rose considerably from the prior week and was up apprer „y Florida " Power
&
Light
Co.
eiably yfromi a' year agoy best-sellers were topcoats; suits, and f , supplies electricity in most of the
sweaters. Interest in sports coats and slacks lagged. The" call for >
territory, along the east coast of
girls' and boys' merchandise was sustained at a high level.
Florida, the agricultural area
Volume

in furniture moved up from the prior week, with
centering on occasional tables, upholstered chairs; and
bedding; sales' were appreciably over .a/year ago.
Appliance
dealers reported the most noticeable year-to-year gains in radios,
television sets, and laundry equipment. Sales promotions helped

around southern and eastern Lake

purchases of linens climb noticeably over last year, and interest
in floor coverings and draperies was moderately higher.

munities, the largest of which arc
Miami,
Fort
Lauderdale, Coral
Gables, West Palm Beach, Miami
Beach, Hialeah, Hollywood, Day-

interest

Okeechobee, the lower
north

tona

week earlier.

Another

appreciable

increase

in women's cruisewear and

noticeably over

year

wholesale

volume

occurred

sportswear this week, and sales were

There

ago.

was

coats,
sales
of men's Spring suits,
interest in sportswear was sluggish.
In
preparation for the Christmas selling season, retailers stepped up
their buying Of men's furnishings.
' *
Transactions

but

levels.

week

cotton

volume-in

Another marked

rise

occurred

equipment.

for-

the

30,

week

earlier,

was

4%:" from -the

down

creases

which

restore

earning

The

Reserve

increased 10%

weeks ended Oct. 17

Board's

for

last year.

increase of 3%
4%

increase

was

the week

now

was

decrease

change

was

reported
2% increase.

with

become

Roma, Alexik

Jan.

MINNEAPOLIS, Minn
•

Miller

Tegeler

Co.,

Warren

—

with

now

DempseySouth Ninth

114

Street.

(Special to The Financial Chronicle)

17,

Starr

have

been

added

the staff of Edling-Williams

Associates,

Inc.,

614

Grant

East

Joins

Lee

(Special to The Financial Chronicle)

Lefferdink Adds

(Special to The Financial Chronicle!

SAN

.FRANCISCO, Calif.—Christ

ning

Riza

has

now

South"

130

with

Bache

Co.,

been

added

of Lefferdink &

Salisbury Street.

the staff

PAUL,

Hoffman

-LOS

ANGELES,

Goldstein

now

Calif, — Gerald
connected

Pacific Coast Securities
1054

with

Company,

now

Broxton Street.

Minn.

has

been

—

Myron

added

the

Hue

Investment

Co.,

Co., 150 Sansome

Joins I. M. Simon

Mittleberg Adds

ST.

(Special to The Financial Chronicle)

has

Robert;

FRANCISCO,
S.

Mittleberg

Delue

Company,

Ocean Avenue.

Calif.—
now

Inc.,

obtained

are

revenues,

com¬

25%, industrial 26% and
9%.

Gas

revenues

follows; Domestic

60%, commercial

17%, industrial

miscellaneous

and

heating

about

70%

6%;

gas

important^ with

saturation.

Kentucky strip mines at
relatively low prices (averaging

The

of producing

is only about 3.8 mills, well

has

1961.

equity
interest in Ohio Valley Electric
Corp.
which
supplies
a
large
company

The company

buys its gas from
System; last
year purchased gas cost averaged
about 450 per mcf, and the over¬
all
selling price about 720.
A
the

Columbia

Gas

increase

in the price of
to be on the way but
the company is protected by es¬
calator clauses. Underground pro¬
pane
storage capacity is being
built. While 1958 gas operations
were
affected
by a decline in
gas appears

industrial

sales, cold weather and

increased

number

than

cus¬

offset

factor

adverse

this

the

been

added

Simon

with

Fourth

2369

New

Street,

York

Exchanges.

and

the

Co.,

staff

315

members
Midwest

the

several

regula¬

obtain

increased

rates

some¬

complicated.

Negotiations
completed with the
City of Cincinnati resulting in a
new gas rate
ordinance, effective
been

the

June

period July 1, 1959 to
30, 1964, which will increase

the

company's revenue $250,000
annually. Changes in the escalator
provision
will
generally
limit
future escalation to changes in
suppliers' gate rates for gas, and
in taxes. Hearings are " expected
to begin
in the near future in
respect to the company's applica¬

tion, filed in April 1958, for a
$2,240,000 annual increase in nonordinance

outside
St.

electric

rates

areas

Cincinnati, Norwood and

Bernard.

The

also

company

to negotiate electric rate

proposes

ordinances providing for

increases
totaling $535,000 with all munici¬
palities served in this

area.

Elec¬

tric rate ordinances in Cincinnati

expire during I960..
The

Kentucky
subsidiary,
Light, Heat and Power, is
also seeking rate increases. Hear¬
ings have been held before the

Union

Public

Service

Kentucky
rates

for

an,

Commission

increase in gas

of $808,000;

this increase, It
understood, has now become
subject to refund.
In
July this year Union Light also
requested an increase in electrifc

common

effective

rates

stock

$969,000, and the new
be made effective Jan. %
1960, subject to refund.
In
Ohio, state law permits a
rate base of cost of reproduction
less depreciation. With 1958 earn¬
ings on a mid-year book-cost rate
base of .only 6.7% and only about
6% on a similar year-end rate
base, the company would seem
clearly entitled to higher rates in
that state, since cost of reproduc¬
tion
is
materially in excess of
original cost. If the company is
successful with rate applications
now
pending, the results should
restore earnings to above the $2
level, it is estimated. The effects
of the steel strike have probably
been small thus far—the, largest
company in the area, Armco, has
been" operating
at
about
half
capacity since it is; not fully in¬
rate may

volved in the strike.
Cincinnati

Gas

Electric

selling currently around 32 (range
this year 37-31 Vz) and pays $1:50
to yield 4.7%. It is selling at 17.9
times
the
earnings for the 12
months ended June 30, or about
16

times

estimated

normal earn¬

ings.

Joins Quinn

Staff

(Special to The Financial Chronicle)

DENVER, Colo.—Donald M. Bell
joined the staff of Quinn &

has

Co.,
was

828 Seventeenth Street. He
formerly with Purvis & Co.

With Cruttenden, Podesta
(Special to The Financial Chronicle)

per

Neb. — Daniel C.
is
now
affiliated
with
is spending about Arendt
$31 million this year for con¬ Cruttenden, Podesta & Co., Trust
struction; $42 million is budgeted Building.
for

LOUIS, Mo.—John P. Stephen
•

stock

employees

tory jurisdictions, the program to

recent

earnings was the increase in the
depreciation rate, beginning July
1, 1958, of about $1 million per
year (based on the recommenda¬
tion of an independent engineer¬
ing firm). This increase, presum¬
ably without affect on income
taxes, was equivalent to 130 a
share

amount

company

average-chit

deht

LINCOLN,

The company

Pioneer-Endicott Arcade.

Ill

(Special to The Financial Chronicle)

SAN

electric

contribution

annum.

staff

With Pacific Coast Sees
(Special to The Financial Chronicle) '

customers

miscellaneous

Minn. —Carl E.
with Lee Hig¬
ginson Corporation, Northwestern
Bank Building.
Anderson

Street.
.

and gas 39%. Residential

rural

40%

(Special to The Financial Chronicle)

MINNEAPOLIS,

ST.

RALEIGH, N. C.^Lewis K. Den¬
is

revenues

gas.

factor, and peak day send-out
was 6%
larger than in 1957.

Higginson

(Special to The Financial Chronicle)
'

electricity and 75 with
Electricity
contributes
61%

tomers

•

Now With Bache & Co.

popula¬
within 400 miles. Population
served is about 1,350,000 includ¬
ing 326 communities served by

the

Street.

La Hue Inv. Adds
1

40%, of U.

some

tion

further

Three With Edling Williams
MINNEAPOLIS, Minn. — William
E. Elsham, Hugo Hendricks and

to "Oct.

with

plants in Ohio.

For the four

small area in Indiana.
System
territory is in the center of a
rapidly growing industrial area,

amount of power to atomic energy

Dempsey-Tegeler

(Special to The Financial Chronicle)

registered and for Jan. 1,

period.

1958

sub¬

power

Co., 1387 Main Street.

With

the

its

and

electricity and
gas to the City of Cincinnati and
adjoining territory, and also a
portion of northern Kentucky and

installation is scheduled for

Roberts Jr. have

connected

In the preceding week Oct 10 a
four, weeks ended Oct. 17 no

For

over

SPRINGFIELD, Mass. — Armand
Billieux, Camille Morin and

noted.

year.

shewn.

was

showed

period last

expected

are

below the U. S. average. A new
unit of 165,000 kw was placed on
the line in July 1958 and a similar

In the preceding

reported.

in¬

William

taken from
Oct.

rate

supply

that the

(Special to The Financial Chronicle)

comparable

ended

company

230 per million Mu last.year)

According to the Federal Reserve System department store
City for the week ended Oct. 17 increased 6%

are

Three With Di Roma

sales in New York

the

Tucker,, Anthony

previously with Paine, Web¬
ber, Jackson & Curtis.

10% for

country-wide basis

Index

above the like period

week, for Oct: 10,

over

Nathaniel S. Weiner

Leslie H.

Department store sales

ended

power.

company

sidiaries

Because

declined' for

from

the Federal

months

probably be

year.

have

was

Nationwide Department Store Sales Up
October 17 Week

now

and

though a small
be sold to

may

what

earnings
However, the
seeking several

sale

unnecessary t(^ raise equity money
again for about two years, al¬

earnings^ in
$1.60 to $1.85;

Company

capital from

securities and it will

moderate

1959

$1.79.

6.1%,

period—from

and

net

only

June

The

ago

period.

Anthony

earned

Day, 74 State Street. Mr. Beeten

The call

1958

increase

17%

linens and

that

to Oct.

and

BOSTON, Mass.—John K. Beeten
with

$149,285,000

from

has three steam
plants with aggregate capacity of
1,060,000 kw and an average heat
rate of 11,092
btu per kwh. In
recent years it has been buying

and

for floor coverings rose substantially, and
draperies was sustained at a high level.
Increased buying of rice, flour, eggs, fresh meat, and frozen
foods helped over-all food volume at wholesale rise slighly frorp
the prior week. Interest in canned goods, butter, cheese, and fresh
produce was steady.
Meat production rose-5% from the prior week and was 3%
higher than a year ago; pork output was at the highest level for
any week since last February. Although butter processing matched
volume

has

mercial

ended

(Special to The Financial Chronicle)

in case goods, upholstered chairs, and
bedding, with much interest in better-priced merchandise. How¬
ever, orders for Summer outdoor furniture in Chicago were slug¬
gish.
There was a moderate rise in the buving of appliances
during the week, especially lamps, refrigerator, and laundry
year

Sarasota.

months

revenues

Furniture wholesalers reported substantial gains over both the
a

com¬

income of $26,642,000.

week earlier.

prior week and

and
12

Two With Tucker

trading in indus¬
trial fabrics and man-made fibers.
While bookings in woolens
and worsteds edged up, interest in carpet wool lagged. Incoming
orders at dyeing and finishings plants in New England matched
those of

the

481

percent

space

print cloths expanded noticeably this
other gray goods remained at prior

most

Beach

For

net

orders for women's Spring merchandise, especially dresses,
and suits.
While several wholesale markets reported high

week,

supplied

Electric

ing

advance in

moderate

Florida.

July
31, 1959 the company had operat¬

*
•

central

service

moderately stepped up their purchases of food
this week.
They were primarily interested in dairy products,
frozen foods, baked goods, and fresh produce.
Sales of canned
goods and fresh meat remained close to

and portions of central and

area,

Housewives

west coast

Rev¬

$55
1948 to $128 million in

been

increased

there

divi¬

years.

from 5 8.1%

this

120

over

obtain

However, with the,decline

the

..upsurge

106

property
net

Com¬

unbroken

for

have

million in

corporate
It is estimated that the

had

record

1958.

Electric

small gas supplier

has

and

dend

incorporated

ago

its

;

Gas

was

years

enues

bonds will be redeem-

new

OWEN ELY

e WI
1 OI
issue
of

$20,000,000 Florida Power
Co.

a,\

1960 and about $40 million in

later years. It sold 130,000 shares
of
preferred
stock and 451,000
shares of common stock in March

providing over $25 million
capital and lowering the

North
the

Stock

debt ratio to about 46%. Thus the

1958,

new

company

now

position

Suburban Sees. Adds
(Special to The Financial Chronicle)

CLEVELAND,

Ohio —George E.

Atzberger has been added to "fee
staff of Suburban Securities Co.,
732

East

20th

Street.

32*

(1816;

Financial Chronicle

The Commercial and

★ INDICATES

Abbott-Warner Co., Inc.
cents), and 200,000 shares of 6% preferred stock (no par
Aug. 12 (letter of notification) 62,500 shares of common
value, $9 stated value), to be offered in units consisting
stock (no par).
of 3 shares of common ($1
Price—$2.70 per share.
Proceeds—To
each) and 1 share of pre¬
ferred ($9).
prepare estimates and to submit bids, as a prime con¬
Price—$12 per unit.
Proceeds—For contractor on specialized construction projects. Office—123
struction and related expenditures.
Office—513 Inter¬
Denick Ave., Youngstown, Ohio. Underwriter—Strathnational Trade Mart, New
Orleans, La. Underwriter—
more Securities,
Inc., 605 Park Bldg., Pittsburgh 22, Pa. \ Lindsay Securities Corp., New Orleans, La. The SEC.
had scheduled a hearing, to begin on
Abco, Inc.
Sept. 2, which will
.

Oct. 5

(letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—For plant
and equipment, and working capital. Office—411 W. 5th
St., Los Angeles, Calif. Underwriter—Baron, Black, Kolb
& Lawrence, Inc., Beverly Hills, Calif.
•

Acme Missiles & Construction

Corp.

(11/12)

July 2,4 filed 200,000 shares of common srtock (par 25c),
of which 150,000 shares will be offered for public sale
for the account of the company, and 50,000 shares will be
offered for the accounts of the present holders thereof.

Price—$6

per

share.

Proceeds—For

general corporate
office space,
necessary to
Office—2949 Long Beach
Underwriter —- Myron A.

including additional personnel,
equipment, and the provision of funds

purposes,

compete for certain contracts.

•

Tfcoad, Oceanside, L. I., N. Y.
lomasney & Co., New York.

Aeronautical Electronics, Inc.
Sept. 21 (letter of notification) 78,350 shares of common
.stock (par $1) to be offered for subscription by stock¬
holders of record Oct.:!, 1959 for one full share but not
in

excess

o| five shares.. Rights expire 30 days after of¬

fering. Price—To be supplied by amendment. Proceeds
—For construction, purchase of inventory and additional
working capital. Office—Raleigh-Durham Airport, P. O.
Box 6527,

Raleigh, N. C.

Aircraft

Underwriter—None.

Alaska Consolidated

Sept.

Oil Co.,

rendered.

American

Motorists

Service

filed 3,000,000 shares of common stock (par
Price—$2.50 per share. Proceeds—For fur¬
ther development and exploration of the oil and gas po¬
tential of the company's Alaska properties. Office—80
^Wall St., New York. Underwriter—To be supplied by
^amendment. Offering—Expected in about three to.four
17

weeks.

Co.

19 filed

Life

Insurance

Co.

including, possibly, the acquisition of similarly engaged
companies. Office—113 Northeast 23rd Street, Oklahoma
City, Okla.
Underwriter
Co., Washington, D. C.

—

First

Investment

bright Title & Trust Co. is the trustee.
be sold for cash in multiples of
bonds will be issued and sold

The bonds

are

$50, and Albright savings
for

cash

any

amount

deposited by the investors. Proceeds—To be invested in
real estate mortgages.
Office—Newkirk, Okla.J

★r All American Engineering Co.
(letter of notification) 25,000 shares of

Oct. 21

common

.stock (par 10 cents) to Raymond C. Forsnas in
Exchange
for 2,000 shares of Hyair Corp., the market value of
•which is stated to be
approximately $8. Office—DuPont

Airport, Wilmington, Del. Underwriter—None.
Alliance Tire &

Sept. 9 filed 100,000 shares of class A stock. Price—$12.60
share, payable either in cash or in bonds issued by

Broadway, New York City.
Underwriter—To
by competitive bidding. Probable bidders:
Boston Corp. and Halsey, Stuart & Co. Inc.
(jointly); Morgan Stanley & Co. and Kidder, Peabody
& Co.
(jointly). Bids—Expected to be received before
11:30 a.m. (EST) on Nov. 17 at Room
2315, 195 Broad¬
way, New York, N. Y.
be determined

First

Ampal-American Israel Corp. (11/2-13)
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3,000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To
develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬

Anodyne, Inc., Bayside, L. I., N. Y. (11/2-6)
Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent).

Price—$2 per share. Proceeds—For
expansion and general corporate purposes. Underwriter
-%Ross, Lyon & Co., Inc., New York, N. Y.
Anthony Pools, Inc.
Sept. 28 filed 200,000 shares of outstanding common stock
(par $1); Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office—5871 Firestone Boule¬
vard/South Gate, Calif. Underwriter — Marron, Edens,
Sloss & Co., Inc., New York. Offering — Expected in

mulative

for

convertible

preferred stock

JHadera, Israel.
Washington, D. C., and New York.

held.

Offering—Expected

Allied Producers

Oct. 8

Corp.

Price—$1

300,000 shares of common
per share. Proceeds—For

working capital. Office—115 Louisiana St., Little
Rock,
Underwriter—None.
The offering is to be made
*>y John L. Dedde, President of the issuing
Ark.

company.

Allied

Small

Business Investment Corp.

Sept. 29 filed 100,000 shares of common stock
(par $8).
S*rice—$11 per share. Proceeds—To be used to
provide
equity capital and long-term loans to small business
concerns.

Office—Washington, D. C.

Underwriter—To

be supplied by amendment.

com¬

•

Architectural

Plastics Corp. (11/2)
(letter of notification) 260,686 shares of com¬
mon
stock (par $1) to be offered for
subscription by
stockholders (with a 15 day standby) and then to the

Sept. 30

public. Of the total shares to be offered, 103,430 shares
are under
options and subscriptions. Price — $1.25 per
share. Proceeds—For
relocating and improving manufac¬

turing plant; advertising,
additional
inventories
working capita! Office—1355 River Rd., Eugene,

Underwriter—Zilka,
Arizona

of which

Fertilizer & Chemical

75,000 shares

of the

issuing

—For additional

counts

of the present

stock (par 15 cents).

Price—$3 per share. Proceeds
working capital, to pay off a note ancl
expanding and improving the boat building business.
Office—Division Street,
Warwick, R. I. Underwriter—
Frank P. Hunt & Co., Inc.,
Rochester, N. Y.
American Educational Life Insurance
Co.

Sept. 15 filed 3,800,000 shares of class A common stock
{par $1), (voting), and 950.000 shares of class B common
«tock (par $1),
(non-voting), to be offered in units of
four shares
etock.

class

Price—$25

porate purposes.
Standard

per

stock

unit.

and

one

Proceeds—For

class

general

cor¬

Office—Nashville, Tenn. Underwriter-

Securities Corp., Third National

Bank

Washville, Tenn.
American &

Bldg.,

Foreign Power Co., Inc.

(11/2-6)
Oct. 7 filed 220,000 shares of common stock
(no par) .Price
—To be supplied by amendment.
Proceeds—Will go to
celling stockholder, Electric Bond & Share Co. which
upon
completion of the offering will hold 52.3% of the total
outstanding stock of American &
Foreign Power Co.
AJnderwriters
Boston

American

June

—

Lazard

Freres

Co.

and

The

Corp., both of New York.

filed

Investors Syndicate, Inc.
600,000 shares of common stock

share.

per

and

Ore.
Smither & Co., Inc., Portland, Ore.

for

mon

stock

Underwriter—None.

Sept. 24 filed 100,000 shares of

Boatbuilding Corp.
Sept. 29 (letter of notification) 100,000 shares of

common

Proceeds—To pur¬
chase inventory, new
tools, construction and for working
capita!
Office—5871
E.
Firestone
Boulevard, South

•

American

offered

Price—At par ($1 per share).

Gate, Calif.

(letter of notification)

stock (par 20 cents).

are

Co.

common

(11/4)
stock (par $2.50)

to be offered for the account

and 25,000 shares for the ac¬
holders thereof. Price
Around

company,

Proceeds

For

general

corporate

pur¬

including the provision of funds for the ex¬
pansion of Cortez Chemicals Co., a subsidiary, the addi¬
tion to working capital of the
issuing company, and the
partial liquidation of its unfunded indebtedness. Office—
poses,

734 East Southern Pacific
writers

Drive, Phoenix, Ariz. Under¬

Mitchum, Jones & Templeton, Los Angeles,
Calif., and Walston & Co., Inc., New York.
• Arkansas Power & Light Co. (12/8)
Oct.

—

filed

$15,000,000 of first mortgage bonds, series
Proceeds—For construction. Underwriter—To
be determined by
competitive

due 1989.

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers and Stone &
Webster Securities
Corp. (jointly); Blyth & Co., Inc.
and Dean Witter & Co.
(jointly); Merrill Lynch, Pierce,
Fenner & Smith Inc. and
Kidder, Peabody & Co. (joint¬
ly); Eastman Dillon, Union Securities & Co. and Equi-,
table Securities Corp.
(jointly). Bids—Expected to be
received up to 11:30 a.m.
(EST) on Dee. 8.
i
Associations Investment Fund

Aug. 28 filed 400,000 shares of common stock.
PriceTo be supplied by amendment.
Proceeds—For invest¬
(par

needed for costs of construction

ment

common

being incurred in 1959.

Underwriters—Eastman Dillon, Union Securities
and Smith, Barney & Co.,. both of New York.

Co.

Sewing Centers, Inc. (11/16-20)
$2,000,000 of 6% convertible subordinated
due Nov. 1, 1974. Price—To be
supplied by
amendment. Proceeds—Along with other
funds, will be
used for reduction of, short-term
loans,, for company's
expansion program, and for additional working capital.
15

filed

debentures

Underwriter—Van Alstyne, Noel &
Co., New York.
Atlas

Oct.

Sewing Centers, Inc. (11/16-20)
filccj 75,000 shares of common stock

(par $1).
supplied by amendment.
Proceeds—To
selling stockholders. Office—Miami, Fla. Underwriter—
Van Alstyne, Noel & Co.; New York. •-z- /
/ U
Price—To

Australian

Grazing & Pastoral Co., Ltd.
^
z
4,000,000 shares, of common stock. Price—
(56% cents per share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch Id
Queensland, Australia; and for other^corporate purposes.
Jan.

13 filed

par

Office —1301

Avenue

L, Cisco;. Texas.

Underwriter

—

Robert Karnori is President..

Baker Oil

Tools, Inc.

(11/12)

Oct.

7 filed 550,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To sell¬

ing stockholders. Business—Company designs, manufac¬
tures, and distributes a broad line of specialized tools
and equipment used throughout the world in
drilling.
Underwriters—Lehman Brothers, New York, and Lester
Ryons & Co., Los Angeles Calil.
B.

Harrison

Electrosonics, Inc.

Sept. 25 filed 133,000 shares of common stock (no par)..
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
the provision of funds to assist the company's expansion
into the civilian market. Office — Newton

Mass.

Underwriter—G.

Highlands,
Parks & Co., Inc., 52
Offering:—Expected prior to

Everett

Broadway, New York City.
Nov. 13.

Baldwin Securities Corp.,

New York
823,825 shares of common stock, to be of¬
fered in exchange for the common stock of General In¬
Oct. 20 filed

dustrial

Enterprises,

shares for each

Inc.,

General

the

five

rate

Baldwin

share.

Bankers Management Corp.
Sept. 10 (letter of notification) 300,000 shares of common
(par 25 cents/z Price—$1 per share.—Proceeds—For working capital. Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark,
stock

N. J.

Offering—Expected in about 30 days.

Bankers Preferred Life Insurance Co.

(letter of notification) 100,000 shares of common
(par $1.60). Price—$3 per share. Proceeds—For
incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, CoSo.

expenses
pany.

Underwriter—Ringsby

Underwriters,

Inc.,

Denver

Cola
•

Barber-Greene

Co., Aurora,

III.

(11/16-20)

Oct. 21 filed

133,600 shares of common stock (par $5) of
which 125,000 shares are to be offered for the account of

issuing company, and 8,600 shares are to be offered for
the accounts of the present holders thereof. Price—To
be supplied by amendment. Proceeds—To
be^ added to
general funds to reduce bank loans. Underwriter—Wil¬
liam Blair &
•

Co., Chicago, 111.

Barton's

Candy Corp. (11/4)
Sept. 28 filed 175,000 shares of common stock (par $1),
of which 150,000 shares are to be publicly offered. Price
—To be supplied by amendment. Proceeds—For general
corporate purposes, including the financing of accounts re¬
ceivable, the provision of funds for new machinery and
equipment, for construction of new stores and improve¬
ments of present outlets, and for working capita! Office
—80 DeKalb Avenue, Brooklyh, N. Y.
Underwriter—
D.

Blair

Co.

—

First
.

stock

common stockholders at the rate of two

preferred shares for each three shares of

day.

Jan. 30
cu¬

subscription by

$4%)
—

provide part of the funds required for the company's
i960 construction and to provide additional funds if

November.

the State of Israel.

Proceeds—For expansion.
Office—
Agent — Harry E. Brager Associates,

Atlantic City Electric Co.
(11/19)
Oct. 20 filed 200,000 shares of common stock
(par
Price—To be supplied by amendment. Proceeds

None.

• American Telephone & Telegraph Co. (11/17)
Oct. 22 filed $250,000,000 of 27-year
debentures, due Nov.
1, 1986. Proceeds—For general corporate purposes.
Of¬

Anthony Powercraft
Sept. 8 (letter of notification) 241,200 shares of 5%

Rubber Co. Ltd.

t>er

any

Planning

•

$2,000,000 of Albright bonds, of which Al¬

•

Oct.

pected later this year. Statement effective Oct. 8.

"Ar Albright Bond Mortgages

City, Mo. Underwriter—Jones Plans, Inc., a sub-:
sidiary of R. B. Jones & Sons, Inez - •

■

Insurance

Sept. 14 filed 375,000 shares of common stock, of which
300,000 shares are to be publicly offered. Price—$3.50
per share.
Proceeds—For general corporate purposes,,

The

ISSUE

Atlas

Sept. 22 filed 166,668% shares of capital stock (par $3),
being offered to holders of outstanding shares of such
stock of record Oct.
26, 1959, in the ratio of one new
share for each eight shares then
held; rights to expire
on or about Nov. 27.
Price—$12 per share. Proceeds—To.
raise the ratio of its capital
stock, surplus, and surplus
reserve to premium
writings, to increase underwriting
capacity, and for general corporate purposes. Office—
4750 Sheridan Road, Chicago, II! Underwriter—None.
American

REVISED

Kansas

•

Inc.

five cents).

Oct.

offering.

stop order will be issued suspend¬
of Oct. 21, no decision had been

fice—195

Dynamics' International

Corp.
Sept. 25 (letter of notification) 100,000 shares of com¬
mon stock (par 10 cents).
Price—$3 per share. Proceeds.
—For general corporate purposes.
Office—229 S. State
Street, Dover, Del. Underwriter—Aviation investors of
America, Inc., 666 Fifth Avenue, New York 19, N. Y.
•

determine whether

ing the

ITEMS

•

Thursday, October 29, 1959

ADDITIONS

SINCE

stocks.

Office—301

11th

Street,

Basic

Materials, Inc.
April 9 (letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—For mining expenses. Office—e/o Harold A*
Roberts, President, Arroyo Hondo, Santa Fe, N. Me*.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,
N. Mex. Letter became effective on Sept. 21.
—

Berens Real Estate Investment

Corp.
July 31 filed $1,200,000 of 6%% debentures, due Sept. 15,
1969, and 80,000 shares of common stock (par $5). Price
—$500 per unit, each unit to consist of $300 of deben¬
tures

and

working capita!
D.

dress.
•

common

Office—1722

Underwriter—Berens

Securities

Statement effective Oct.

Biederman Furniture Co.

Proceeds—For

stock.

St. N. W., Washington

Corp.,

same

ad¬

15.

(11/9-20)

Oct. 16 filed 331,635 shares of class A common stock (par

$1). Of the total. 216,549 shares will be sold for the com¬
pany's account and 115,086 shares are being offered for
the accounts of certain selling stockholders. Price—To be
supplied by amendment. Proceeds—$845,170 will be used
to

purchase

from

the

Alton, Inc., an Illinois

shareholders

Biedermans

corporation and Biedermans of

I1'

Volume

Number 5894

190

....The Commercial and Financial Chronicle

(1817)

Springfield, Inc.,

Missouri corporation, all of the out¬

standing stock- of both: corporations..

The. shareholders
from whom such stock is be acquired are David BiederWilliam Biederman and the Trustees of the Trust

man,

under

the

deceased, all of whom

are

Estates

created

Will of Charles Biederman,
also selling shareholders; the

balance will be used for general corporate purposes, and
the possible future expansion of its business by opening
of additional stores,

requiring the carrying of additional

additional

inventories- and

instalment

also possibly for the expansion
Underwriter — Dempseyl-TegeJer

obligations,

and

of warehouse facilities.
& Co., St. Louis, Mo.

Blanch-Ette, Inc.-

Oct.

filed

shares of common stock, to be
independent dealers who handle the

400,000

offered initially to

company's products, with the unsubscribed shares to be
to the public. Price—$1 per share. Proceeds—
To. establish new dealerships, increase inventories, and
offered

funds for - advertising and increase working
Office—10232 South Kecizie Ave., Chicago, 111.

provide
capital.

Underwriter—None.

For

general

corporate

Office —1609

purposes. j

Street^ El Paso, Texas.

Texas

Cadre Industries Corp.
Sept. 25 filed X7,532 shares of

Underwriter—None.

common stock (par
$5),
to be offered to holders of such stock of record Oct.
23,
on
the basis of one new share for each 8 shares thejx

Breuer

& Curran Oil Co.
w;
Sept. 24 filed $1,500,000 of co-ownership participations
in an oil and gas exploration fund. Price—The minimum
participations will be $10,000. Proceeds—To conduct oil
and gas exploration activities. Office—3510 Prudential

Plaza, Chicago, 111/

held; rights to expire on or about Nov. 16 (subject to
SEC
approval). Price—$64 per share. Proceeds—For
general corporate purposes, including working capital.
:

•

Brookings International Life Casualty Co.
Oct. 12 (letter of notification)
11,364 shares of common
stock (par $8.80) to be offered to policyholders as of
Aug. 16, 1959. Price — $9.68 per share. Proceeds — For
working capital and surplus accounts. Office—520 Mailt
Ave., Brookings, S. D. Underwriter—None. /.
ir Brunswick-Balke-Collender Co.

Oct. 21 filed 351,516 shares of common
stock,
issuable upon exercise of options under the

which

are

company's

Restricted

Stock Option Plan for key management per¬
Office—623 Scuth Wabash Ave., Chicago, 111.

sonnel.

5
,

★ Brunswick Pulp & Paper Co., Brunswick, Ga.
(letter of notification) an undetermined number
common stock
(no par) of Scott Paper Co.,

Rolling Mills, Inc.
*.
$2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50 par), to be offered in
units of. $50 principal amount of debentures and five
shares of common stock.Price — To be supplied 1 by
amendment.: Proceeds—For the purchase of land and

Oct. 19

construction

price

stallation

the New York

Border Steel

14 .filed

Sept.

thereon, and for the manufacture and in¬
of necessary equipment.
Office—1609 Texas

Street, El Paso, Texas. Underwriters—First Southwest
Go., Dallas, Texas, and Harold S. Stewart & Co., El Paso,
Texas.
,

Inc.

Rolling Mills,

undetermined number of shares of

common

stock

(no par) of the Mead Co. to be offered to employees of
company pursuant to the Employees' Stock
Purchase Plan for 1960.
Price—At-the-market on the
the issuing
New

York

not

Stock

Exchange
the

exceed

last

private

sale

quoted

offering price on
Exchange. Proceeds—For the pur¬

Stock

chase of stock.

Underwriter—None.

fered for subscription to

stockholders of record Aug. 31,

the basis of 49 new shares for each share then

Price—To be supplied by amendment.

Proceeds—

stock

(par five cents). Price—$2.50 per share.
building and equipping stations and truck
stop and additional working capital. Office—C/o Gar¬
land D. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town
Bank Building, Baltimore 2, Md. — *
/
'•
Proceeds—For

November 6

NEW ISSUE CALENDAR

(Friday)
Haupt

St.,

California

November 9

Common

Corp

Con-O-Veyor

Securities Corp.!

(Plymouth

Gertsch Products,

Inc

(Schwabacher

Capital Stock

—,

<fc

(First

tal.

Office—Calpella, Calif.

(The

Debentures

Israel Corp....
underwritingi $3,000,000

(No

■

Ernest

Holt, of Eureka, Calif., President of the comply.

★ Calumet & Hecla, Inc., Chicago, III.
Oct. 27 filed 188,340 shares of common stock, to be of¬
fered in exchange for all of the common and preferred
stock of Flexonics Corp., on the basis of one Calumet
share for each 2%. shares of Flexonics common and 4

Smither

Common

R.. Staats

(William

Fvantz

(Blair

••

——*

Brothers

Holman

t JL*

and Mason-Hagan. Inc.) 270,000

Friedrichs & Co.

Giant

Howard, Well, Labouisse,

Inc.;

Byllesby. & co„

Debentures

Inc

General Flooring Co.,

Parker

Peabody &; Co.)

Kidder,

and

Red path

200,000

Common

Metallurgical Processing Corp.—...
Oak

Inc.)

(Bache

Bonds

Valley Water Co.—
(Bache.&

$125,000

Co.)

State

(A.

Radio

Edwards

'(John

(Stone

Keenan

A. Lomasney &

(Myron

Gas

$300,000

Common

Refrigerator Co._

Ranney

McCarty

Co.. Inc.) $308,000

<fc

(Campbell,

(Robert

Ferman

Roundout

;•

^Deben Uircs
/"V.,
Preferred

$500,000

Co.,

Co., Inc. and S. B. Cantor

November

(Offering

Weld ^ Co.)

(Wednesday)

stockholders—unaerwritten
Share Corp.)

November

Acme Missiles

Oil

Baker

(Lehman

...Common
Plymouth

Lomasney

Tools,

(Offering

The

(Jaffee,

Waltham

Common

Inc.———

Leverton^ Reiner

Co.)

135,000 shares

Engineering & Research Associates

First

.Common

Noel

Common
Co.)

75,000

Alstyne*

Noel

.Debentures
&

First Republic

Underwriters Corp.) $1,005,000

'—Common

—

Blai»*

Common

Washington Planning Corp...
Kahn & Infante) $72,858

(Heft,

Arizona Fertilizer
(Mitchum, Jones

Barton's

& Chemical Co.—
Common
Walston & Co., Inc.)

(D.

General

Blair & Co.)

Acceptance

(Paine, Webber,
Union

Marache

Peabc'y

P"»

(General

Co.)

Common

Diego Gas & Electric Co

by Blyth & Co., Inc.)

(Offering to stockholders—underwritten
shares

Co.)

85,035

Debentures

& Curtis and

(Paine,

Webber, Jackson

Halsey,

200,000

Investing Corp.) 50,000

(J. M.)

..Common

...

Co.)

$600,000

Debentures

Industries, Inc
(S.

warrants

Becker

$1,500,000

Co.)

(Tuesday)

Gulf States Utilities Co
(Bids

Gulton

Industries,

...Bonds
EST)

a.m.

$16,000,000

Inc..

Brothers and

November 30

Common
Walker

December 1

United

60,000 shares

(Monday)

Bond

Common

Corp.) .$915,642

(Tuesday)

Consolidated Edison Co. of Nev)United

Co.)

Co. of Florida...

Life Insurance

Bids

invited*

York, Inc.__Bondj

$50,000,000

Marine, Inc
Marine,

Common
Co.)

125,000

Debentures

Inc..

Winkelman Bros.
(Watling,

Wts.

Debentures

Fuller

(Boenning

Com.

Co.)

283,307

Co.)

$1,250,000

Apparel, Inc..
Lerchen

Worcester County

December 7

.Common

Co.,

Inc.)

110,837 shares

Co.)

Common

145,000

Electric Co
to

invited)

Bonds
$7,500,000

Co.)

165,000

December 8

100,000 shares

...Common

Staats

Common

(Michael G. Kletz & Co.) $670,000

Common

Co.)

655,000

(Tuesday)

Arkansas Power & Light Co
(Bids

11:30

a.m.

Universal Container Corp...

(Monday)

Trans-World Financial Co.^
(W.

Common

and Kidder, Peabody & Co.)

Smucker Co

Stuart &. Co., Inc.) $25,000,000

Common
shares

150,000

Common

(McDonaH

Sylvania Electric Products, Inc

Corp.)

Medical Products Corp

Fetzer Co

(McDonald & Co.

Co.)

Lomasney

(Boening

Common

Reserve Insurance Co
G.

Machines, Inc.
Hammill

(Bids

(A.

$1,089,125

(J. A. Hogle & Co.; Garrett-Bromiield <te Co. and Peters, Writer
& Christensen, Inc.) $6,000,000

Perrine

65,877

National Video Corp

Dillon,

du Pont & Co. and

Inc.)

_——_—

(Myron

325,000 shares

Co.)

-»

Investing

(Bache

Debentures

Jackson & Curtis and Eastman
Securities & Co.) $10,000,000

500,000

Common
.Common

Micronaire Electro

Co.,

Frontier Refining Co..

$400 000

Lindberg Steel Treating Co., Inc

Scott
San

Bros.)

Gibraltar Financial Corp. of California

175,000 shares

Corp

Business
(Shearson,

(Kidder,

Fall River Electric

Bonds

EST)

$15,000,000

..Preferred

Light Co

(Bids to

invited)

$3,000,000

^..Bonds

Louisiana Gas Service Co

November

Electro-Sonic
(L

Laboratories,
r>.

November

(Thursday)
Sherman

...Common

Inc
Co.)

Co.)

icau

$299,799

Corp.—Common

World

(Tuesday)

(Bids to

telephone & Telegraph Co
*»

fc^OWO

Metropolitan Telecommunications
(Lee

Amei

-aceived

Miller,

Debena.

$250,000 000

Publishing Co....
(Joseph, fMeUen

Brothers)

Lehman

(Monday)

(Plymouth

Supermarkets, Inc.—

(General

...Common

Robinson-Humphrey

(Diran, Norman & Co.) $300,000

Corp

Candy

Common

Micronaire Electro Medical Products Corp...

& Templetorx and
100.000

Digitronics Corp.

(Cruttenden,

(Wednesday)

November 4

133,600

Co.)

Manufacturing

(Granbery,

Debentures

Common

Lane,'Space Corp.; Francis

36,237

(Lehman

$2,000,000

Co.)

Co.

Cracker Barrel

(Friday)

Financial Corp....

Piedmont Natural Gas Co., Inc..
Preferred
(Offering to stockholders—underwritten by White, Weld & Co.)

Centers, Inc

(William

Conetta

.Common
shares

196,400

Chemjcal Corp.

(Johnson,

November

(Monday)

Alstyne

(Van

Participations
(The

Oxford

$150,000

Inc.)

Atlas Sewing Centers, Inc
(Van

Inc.)

Corp.) 66,490 shares

Electronics Funding Corp...
November

Co.,

New York State Electric & Gas Corp.... .Common
"(Offering to stockholders—underwritten by The First "
f.
.s
'Boston Corp.) 467,247 shares

Dynex, Inc.

.Common

stockholders-—underwritten* by

to " stockholders—underwritten
$9,998,800

Common
Ryons & Co.) 550,000 shares

Colorado Central Power Co

Barber-Greene

Co.) $542,500

••

Common

$1,200,000

Inc

Brothers and Lester,

$600,000

Blauner

Western

Dashew

Co.)

November 23

(Thursday)

Inc.)

Co.,

Debentures

...—

Blauner

Bond

157,4.94 shares

& Construction Corp

(VermL

Southern Gulf Utilities,

....Common

.—

Lenahan Aluminum Window Corp

Common

Corn.

(Sandkuhl &

Fenner

(Thursday)

November 20
Great

The

Atlas Sewing

$000,000

Co.)

Lynch, Pierce,
(2,000,000 shares

-Harman-Kardon, Inc.

(Offering

Corp. and White,

300,000

Class A

Realsite

(Milton

..Common

inc.)

Co.,

Transmission

(Darius

Common

Co.)

'• *•'.

-——

& Webster Securities

$1,000,000

Frequency Co., Inc.——

•

Common

Boston

Debentures
Sens)

...Common

Merrill

and

Harman-Kardon, Inc.

$175,000

(Milton

105.000

Day)

Industries -i-

Plastic Applicators, Inc.—

Inc.)

Co.,

(Myron

$145,000

Co.)

(Hemphill. Noyes & Co.) 375,000 shares,

$300,000

Valley Sewerage, Co..
.

Oak

Co.,

Securities

(Netherlands

$749,000

Kayser-Roth Corp.

Common

Food, Inc.——.—.

(Auchincloss,

Co...—

Fenner

Union Securities & Co. and
Smith, Barney & Co.) 200,000 shares

(Tuesday)

& Co., Inc.; Howard, Weil, Labouisse,
Friedrichs & Co. and Mason-Hagan, In.) 270,000 shares

...Debentures

Lynch, Pierce,
$40,000,000

Inc.)

page

Merrill

and

Smith,

(Eastman Dillon,

■

—.Common

Byllesby

200,000

Lomasney & Co.)

Tennessee

-Common

General Flooring Co., Inc
(H.

(Wednesday)

November 19

Webber, Jackson & Curtis and Tucker, Anthony

(Paine,

.Common

190,953

Inc.)

Co.,

120.000 shares

& Co.)

Co.—

Manufacturing

Corp.)

Hydromatics, Inc.

Common

West

Boston

Common

Plymouth Securities Corp.) $300,000

First Financial Corp. of the

First

November

>•

and

& Co.

$325,857.50

Inc.)

Co.,

CoDymation, Inc.
(Simmons

Atlantic City Electric Co...

-.Common

Continued

Span America Boat Co., Inc.———__—Common

$300,000

Inc.)

Co.,

.■

...

and Smith Inc.

Corp.). $404,106.50

—

Capital Shares, Inc.
Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
—To be supplied by amendment. Proceeds—For invest¬
ment in the securities of companies engaged directly or
indirectly in the life insurance business. Office—15 Wil¬
liam Street, New York. Underwriter—Capital Sponsors,
Inc., New York.
j

(Lehman 'Brothers

....Common

Co., Inc
(D.

Common
&

Lyon

Architectural Plastics Corp.—
(Zilka,

Rek-O-Kut

(R.

Anodyne, Inc.
(Ross.

Street

Underwriter—The offering

is to be made by Ramond Benjamin Robbins, one of the
nine promoters, the list of which also includes Harry

American & Foreign Power Co., Inc
.Common
(Lazard Freres & Co. and The First Boston Corp.) 225,000 shares

Ampal-American

Broad

Pitney-Bowes, Inc.

California Mutual Co-Ply, InCi
Sept. 14 filed 140 shares of voting common stock. Price
—At par ($5,000 per share). Proceeds—To
purchase the
mill and related facilities of Durable Plywood Co. for
$690,000, with the balance to be used for working capi¬

331,635

Electronics Development, Inc.--

107,143

Co.)

Common
Co.)

Underwriter

Corp#
July 27 filed 2,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for
assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah. Underwriter—Cromer
Brokerage
Co., Inc., Salt Lake City.
.

Transwestern Pipeline

Furniture Co

Metals

(Lehman

(Monday)

<Dempsey-Tegeler

(Monday)

November 2

Biederman

$150,000

V 'j,

(Friday)

October 30

Endwell,

Transwestern Pipeline Co..'—....

$1,000,000

Co.)

Valley

November

Servo Corp. of America.——Debentures
(Ira

Office—20

None..

shares of Flexonics preferred.

Burch Oil Co.

common

Sept. 14 filed 226,380 shares of common stock, to be of¬

held.

Sept. 25 (letter of ontification) 120,000 shares of class A

Border Steel

1959,

of shares of

and

—.Common
Inc.)

100,000

December 9

iavited)

$6,000,000

(Wednesday)

New England Power Co
(Bids to be

invited)

—

100.000 shares

Preferred

(1818)

Continued

from

page

increase

capital

and

surplus.
Underwriter—None,
join in the distribution will
5

but brokers and dealers who

Carwin Co.

receive commission of 40 cents per share.'

Oct. 2 filed 48,080 shares common stock (par $2), of which
46,080 shares are to be offered for subscription by com¬
mon

Cornbelt

stockholders at the rate of one, new share for each
The remaining 2,000 shares are being
account of

fered

share.

be supplied by amendment. Proceeds—For general cor¬
porate purposes including the repayment of outstanding
bank loans in the amount of $425,000, the provision of
funds

for

the

1959-60

construction

Chadbourn Gotham, Inc.

for

each

Proceeds—To

Sept. 15

then

held.

credited

stock, to be of¬
on

the basis of

Price—$4.50 per
stated capital and

corporate purposes, including payment on a build¬
the financing of loans.
Office—Orlando, Fla.:

and

Underwriter—Leon

Sullivan,

convertible

subordinated

convertible into

Philadelphia.

Pa.,

Dorsett Laboratories, Inc.
Oct. 2 (letter of notification)
common

$160,000

debentures.

lt)-year

6%'

Debentures

are

stock at $4 per

Office—12 North Galena, Avenue, FreeUnderwriter—None.
f
"
M

share up to and
including Nov. 1, 1962; thereafter at $8,per.share up
to and including Nov.
1, 1965 and thereafter at $12 per

Cracker Barrel Supermarkets, Inc. (11/16-20)
Sept. 25 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2.50 per share. Proceeds—

notes.,pay able, to purchase facilities and equipment/and
for working capital.
Office—401 E. Boyd St, Norman,

paid-in surplus.

port, 111.
•

and for
working capital. Office—Stiles I^ane, New Haven, Conn.
Underwriter—Putnam & Co., Hartford, Conn. Offering
—Expected early in November.
•

common

to stockholders of record

one

selling stockholder. Price—To

ing

'"best efforts" basis. *

Sept. 29 filed 100,000 shares of

four shares held.
sold for the

Life Co.

eral

program,

For

general corporate purposes.

Office—84-16 Astoria

share.

Okla.

Blvd., Queens, L. I., N. Y. Underwriter—Diran, Norman
& Co., New York.
\
;

(11/2-6)

Price—At

face

amount.

Underwriter—None.

Proceeds—To

reduce

Drexelbrook Associates

/•

May 22 filed $2,000,000 of partnership interests, to be
Sept. 28 filed $2,000,000 of 6% conv. subord. debentures,
• Crane-Hall Corp.
-■(' tffered in units. Price—$10,000 per unit. Proceeds—To
1974, with warrants to purchase 200,000 shares
be
Oct. 16 (letter of notification) 125,000 shades of common
used
for
various
of common stock (par
acquisitions.
Office
Broad
&
$1), to be offered for subscription
Chestnut Streets, Philadelphia,^ Pa.
stock (par. 10 cents). Price—$2 per share. Proceeds—For
by holders of its common stock at the rate of $100 of
Underwriter—None;
debentures, with an attached warrant to purchase 1Q ' production, sales promotion and expansion of markets/; * Dyna-Therm Chemical Corp. : ? 1
^
Office—1522 14th St., N. W.,
common
Oct. 28 filed 200,000 shares of
shares for cash for each 100 common shares
Washington, D. C. -Under¬
capital'stock.
Price—$3
writer—None.
■
'
held on or about Oct. 15, 1959; rights to expire on or
;
per share.* Proceeds—To purchase stock of
subsidiaries,
about Oct. 30. Price—To be supplied by amendment,
for payment of loans, and for
Crescent Petroleum Corp., Tulsa, Okla. •'
working capital. OfficeProceeds—For general corporate purposes,
Culver City, Calif.-- Underwriter—Peter
May 26 filed 48.460 shares of 5% convertible pfd; stock
including
Morgan & Co.,
New York City, on a "best efforts" basis. ^
working capital and the acquisition of shares of the out¬
($25 par) and 12,559 shares of common; ($1 par), 34,460
'•
" >'*
jhares of the preferred and 9,059 shares of common are
standing common stock of Davenport Hosiery Mills, Inc.,
•
Dynex, Inc. (11/23-27)
'
of Chattanooga, Tenn. Office — 2417 North Davidson
issuable upon the exercise of stock options granted when
Aug. G filed 120,000 shares'of common stock
(par 25
the assets of Norbute Corp. were acquired on
St., Charlotte, N. C. Underwriter—R. S. Dickson & Co.
cents). Price—$5 per share. Proceeds—For
Aug. 6,
general cor¬
1958. Underwriter—None.
Charlotte, N. C.
porate purposes, including product
research, the pur^
Charter Oak Life Insurance Co.
chase of new equipment, and
Crusader Oil & Gas Corp., Pass
expansion. Office
Christian, Miss.
123
Eileen Way,
Sept. 28 (letter of notification) 116,064 shares of com¬
May 26 filed 1,500,000 shares of common stock, of which
Syosset, L. I., N. Y. Underwriter—Myron A.
mon stock (par $1) to be offered to present
641,613 shares will be offered on a one-ior-one oasis to
Lomasney & Co., New York.
^and future
foundation policyholders of the company. Price—$2 per
stockholders of record May 15, 1959.
E. H. P. Corp.
The remaining
share. Proceeds—For surplus and working capital.
Of¬
858,387 shares will be offered publicly by the under¬
Aug. 31 filed 160,000 shares of capital stock
(par 10c),
fice—411 N. Central Avenue, Phoenix, Ariz.
writer on a "best efforts" basis. Price—To be
Under¬
of which 100,000 shafes are to be
supplied
publicly offered. Price
due Oct. 1,

—

writer—None.
•

Colorado Central

Power Co.

by amendment. Proceeds—For repayment of notes and
working capital. Underwriter — To be supplied by

for

(11/12)

Oct. 16 filed 66,490 shares of common stock (par $2.50)
to be offered for subscription by holders of outstanding
stock of record Nov. 6, 1959, on the basis of one new

amendment.
Dashew Business

Machines, Inc. (11/23-27)
22 filed 150,000 shares of common stock
(par 10
cents). Price—To be supplied by amendment.
Proceeds
Oct.

share for each 10 shares then held; rights to expire on
Nov. 30.
Price—To be supplied by amendment.
Pro¬

—For

ceeds—For construction.

capital.

Office—347Q South Broadway,

Englewood, Colorado. Underwriter
Corp., New York.

—

The First Boston

Columbian Financial Development Co.

Aug. 14 filed $1,000,000 of Plans for Investment in
Shares in American Industry, of which $500,000 was for
Single Payment Investment Plans and $500,000 for Sys¬
tematic

Investment

Plans

and

Systematic

Investment

Plans With Insurance. Office—15 East 40th Street, New
York.
Underwriter
None.
Offering — Expected some
—

time before

Jan.

offered in uints

as follows: $1,000 of bonds and 48 shares
$100 of debentures and nine shares of stock.

be supplied by

amendment.
Proceeds — To
refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.

construct

•

Conetta

Manufacturing Co. (11/16-20)
Sept. 28 filed 100,000 shares of class A common stock (par
10c). Price—$4 per share. Proceeds—For working capital;
to prepay a bank note; and for
machinery and equipment.
Office—73 Sunnyside
Avenue, Stamford, Conn. Under¬

writer—Vermilye Bros., New York.
Consolidated Development Corp.
Aug. 28 filed 448,000 shares of common stock, of which
198,000 shares are to be offered to holders of the issuing

company's 6% convertible debentures, and 100,000 shares
are to be offered to the
underwriter, with the remaining
150,000 shares, in addition to those shares described
above not subscribed for by the debenture holders and
the

underwriter,

Price

holders, 75 cents
at

respectively,

For the shares to be

—

which

the

per

stock
lor

offered

publicly
to

offered.

the debenture

share, which is equal to the price

debentures

of the record date

convertible

are

into

common

the basis of

each four shares then

one

new

held.

Price—$1.50 per share.
contracts, reduce ac¬
payable, and increase working capital.
Office—
South Dixie Highway, Troy, Ohio.

Proceeds—To finance government
counts

Deluxe Aluminum

Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock to be

York.

Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050 shares of common stock, of which
190,871 shares are to be offered to holders of outstanding

Oct. 15 filed

Dec. 16,1957 filed $25,000,000 of first mortgage bonds due

of stock and

—

York.

1960.

Commerce Oil Refining Corp.

Price—To

purchasing of equipment, expansion, and working
Underwriter
Shearson, Hammill & Co., New

000 shares of

Products,

$330,000 of convertible debentures, and 70,common stock. Price—For the
debentures,

of principal amount; for the stock, $5 per
Proceeds—From 10,000 shares of the common

share.
stock, to
the present holders
thereof; from the rest of the offer¬
ing, to the company to be used lor expansion and as
working capital. Office—6810 S. W. 81st St., Miami, Fla.'""

Laboratories,

Inc.

•

Copymation, Inc. (formerly Peck & Harvey Mfg.
Company)
(11/2-6)
Sept. 23 (letter of notification) 100,000 shares of com¬
mon

stock

(par 50 cents). Price—$3 per share. Pro¬
ceeds—To pay bank loans and loans to stockholders and
others and for working
capital. Office—5642-50 North
Western

Avenue, Chicago 45, 111. Underwriter—Sim¬
mons &
Co., (handling the books) and Plymouth Secu¬
rities Corp., both of New
York, N. Y.
Cordillera

Mining Co., Grand Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital stock, of which
2,179,800 shares are to be offered solely to the holders
of

previously-issued options. These shares, together with

the remaining 2,055,000
shares, may be offered for public
sale by
the holders thereof in the over-the-counter
market from time to time. Price—To be related to the
market price at the time of sale. Proceeds—For

general

corporate purposes,
writer—None.

including working

Cornbelt Insurance Co.,

Sept.

offered

filed
for

stock

stockholders

common

Sept. 15, 1959, at the rate of four new shares
10 shares, then held. Unsubscribed shares
may
offered publicly.
Price—$4 per share. Proceeds—

for each
be

Under¬

Freeport, III.

200,000 shares
subscription by

record

capital.

JESA Mutual Fund, Inc.
June 29 filed 2,000,000 shares of
capital stock.
be supplied by amendment.

Office—1028

ington, D. C.

obtaining permission to do business in other states,
a contingency reserve.
Office
—1420 East 18th
Avenue, Denver, Colo. Underwriter—
and the establishment of

None.

"Desert Star Mining Co.
7 (letter of
notification)

Oct.

300,000 shares of common
($1 per share).
Proceeds — For
mining expenses. Address—P. O. Box 81, Kingman, Ariz.
Underwriter—None.
Price

—

At par

•
Digitronics Corp. (11/16-20)
Sept. 25 filed 65,877 shares of capital stock (par 10 cents)
to be offered to the holders of
outstanding shares of

such

stock

held.

Proceeds

—

the

basis of

Price
For

—

one

general

share for each five

new

supplied

corporate

amendment.

purposes.

Office

—

Albertson, L. I., N. Y. Underwriter—Granbery, Marache
Co., New York City.
•

Dilberts

Leasing & Development Corp.
$4,400,000 (subsequently reduced to $2,500,000) of 20-year convertible debentures, due July 15.
197.9 and 1,056,000 shares
(subsequently reduced to 600,000
June

filed

shares) of

common

stock

(pari lc)

to be offered in units

consisting of $50 principal amount of debentures
shares of

common

stock. Dilberts

.Corp. expects to file
tures

are

a new

guaranteed

and

Leasing & Development

statement next week. Deben¬
to

principal and interest by
Dilbert's Quality Supermarkets
Inc., the parent company.
Price
$51.20 per unit.
Proceeds
For repayment of
notes; to develop and construct shopping centers and a
super-market under existing purchase contracts and for
—

—

working capital.
known

Name

Changed

—

Company formerly

Dilbert's Properties, Inc. Office—93-02
151st
Street, Jamaica, N. Y. Underwriter—Ira Haupt &
Co.,
as

New York.

Diversified

Washington,

Connecticut Avenue, N, W., Wash¬

ECon-O-Veyor Corp. (10/30)
18 (letter of notification) 150,000 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
—For advertising and
promotion; new equipment, and
mon

general corporate purposes. Office—224 Glen Cove Ave¬
nue, Glen Cove, N. Y.
Underwriter—Plymouth Secu¬
rities

Corp.,

itfew

York, N. Y.

★ Eitel-McCullough, Inc.
Oct. 14 filed $5,000,000 of convertible

poses.

promotion, inventory,
offices, expenses incidental

stock.

Price—To

Proceeds—For investment.
Investment Adviser—Yates, Heitner &
Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc.,

subordihatedTde-

bentures due Nov.

Co., Inc., New York.

breakdown insurance for the purchase
price of
cents, and for a public relations and publicity pro¬
gram.
Office—Hotel Troy Building, Troy, New York.
Underwriter—John R. Boland & Co.,
Inc., New York.
Offering—Expected during the next two months.

purposes, including salaries, cars,
the establishment of branch

standing shares

the American Stock Exchange at the
time of the offering. Proceeds — For
general corporate
purposes.
Office—Calle 23, No. 956,
Vedado, Havana,
Cuba. Underwriter—H. Kook &

such

1, 1974.
Price — To be supplied by
Proceeds—For retirement of the
company's

amendment.

—

July 31 filed 50,000 shares of common stock (par $2.50).
Price—$10 per share. Proceeds—For general corporate

stock; for the shares to be offered to the underwriter, $1
share; for the shares to be offered to the public, the
price will be related to the current price of the out¬

per

per share. Proceeds
To provide funds for the
purchase of vending machines which will be used to
distribute automobile breakdown insurance
policies on
thruways, parkways and highways in the amount of $25

Sept.

Inc.

100%

Denab

—$2r50

current bank

borrowings and for general corporate pur¬
Underwriter—Schwabacher & Co., San Francisco,

Calif.

Electronics Development, Inc. (11/9-13«
•)
Sept. 25 filed 115,459 shares of common stock (par 10c).
Price—$3.50 per share. Proceeds—For plant erection, ad¬
vertising, research
and
development,
and
working
capital.
Office — Gill and West College Streets, State
College, Pa. Underwriter—First Broad Street Corp., 50
Broad

St., New York.

★ Electronics Funding Corp. (11/12)
Oct. 19 (letter of notification) 75 000 shares of common
stock (par 10 cents).. Price—$2
per share.
Proceeds—
For general corporate
purposes.
Business
Sales and
—

leaseback of special and staple machinery and
equipment
for
the
American
electronics industry.
Office — c/o
Darius Inc., 90 Broad Street, New York
4, N. Y. Under¬
writer—Darius Inc., New York, N. Y.
•

Electro-Sonic Laboratories, Inc.
(11/5)
Aug. 14 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To retire

working capital. Office — 35—54 Thirty-sixth
St., Long
Island City, N. Y. Underwriter—L. D.
Sherman & Co.,
New York, N. Y.
Enflo Corp.
Sept. 30 filed 125,000 shares of common stock
(par 10
cents). Price—$3 per share. Proceeds—For general cor¬
porate purposes. Office—Maple Shade, N. J. Underwrit¬
ers—D.

Gleich

inc.
common

(par $1).
Price—To be supplied by amendment.
Proceeds—For ac¬
quisition of Hope Homes,
Inc., Browntown Water Co. and
Cantor & Goldman
Builders, Inc., with the balance to
be used as
working capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O.
Parlin, N. J.
Underwriter—Lee Higginson Corp., New York.

• Don Mott Associates, Inc.
Oct. 27 filed 161,750 shares of class
B, non-voting, com¬
mon
stock.
Price—$10 per share.
Proceeds—For gen¬

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—Nq less than $120 a year for annual premium
and

contracts.
stock

Co.

Aetna Securities
Corp., both of
Offering—Expected sometime in November.

New York.

contracts

Communities,

Sept. 25 filed 367,200 shares of

outstanding bank loan; to increase inventories;

for sales and promotional
activities; to improve produc¬
tion facilities and to acquire new and
improved tools
and machinery; for
development and research and for

16th

less

than

Proceeds—For

Street, N.

$1,500 for single premium
investment, etc. Office—2480

W., Washington,

Underwriter—

None.

Faradyne Electronics Corp.
Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to be publicly offered.

Price—$5

per

purposes,

including plant expansion, improvement and
Office
744 Broad
St., Newark, N. J.

share.

equipment.

Underwriters

Proceeds—For

general

corporate

—

Netherlands

Securities Co., Inc. (han¬
dling the books) and Herbert Young & Co.. Lie.
(jointly);
—

l&o

Volume

Number 5894

The Commercial and Financial Chronicle

(1819)

Morris Cohon &

Ccl;1 Schrijyer & Co.; Richard, Bruce &
Offerings-Expected in No¬

Co., Inc.,-all: of New York.
vember.

•

(non-voting) (par $1). Price—To be supplied by amend¬
general corporate purposes. Office—
Landover, ,Md. Underwriters — Auchincloss, Parker &
Redpath, Washington, D. C., and Kidder, Peabody & Co.,

U':.-r

Financial Industrial Income Fund, Inc.

shares of common capital stock
Price^-At market. " Proceeds—For investment.- Office—

New York.

950

Oct.

July 22 filed 1,000,000

are

—

erly Hills,' Calit.
New

to be offered for

the accpunt-of the selling stockholders, and 20,000 shares
will be sold for the company's account. Price — To be

Wilshire

Blvd., Bev¬
Underwriter—Kidder, Peabody & Co.,

York.

Gold

conversion.

general

Medal

Statement effective Oct.

9. >

28 filed

Sept.

offered to
of

rate

158,236

rights to expire

shares-; of common/stock,

new

for .each

the

stock;

filed

190,953

(11/2-6)~

outstanding

•

door

garage

hardware.

Office—30L-JWest

3rd

fered

on
—

Christensen/'Inc.y both

of Denver, Colo;-!7

•

effects

working

basis.

Great

was

Price—At

capital.
B.

Office

Burnside

withdrawn

market.

both

Dillon,

New York.

Union

• General Atronics Corp.
Oct.
stock

(letter

(no

;

Co.,

Pro¬

notification)

—

$1 per share, Proceeds

Office

—

Underwriter—None.

Bala

Ave.,

—

Finance

To reduce

Bala-Cynwyd,

Pa.

Sept. 11.

Financial

filed $9,998,800

Corp.

bentures,

due

1974,

offered

for

stockholders of record Nov. 20, 1959

common

being allocated for lease improvements and equipment
supplies.; Office — Santurce, Puerto Ricp.
Under¬

and

writer—Caribbean Securities Co., Inc., Avenida Condado

609, Sahtiirqe, Puerto Rico.

;

•

General!

Flooring Co., Inc. (11/2-6) c;
Sept.: 14 filed $l,5o0,000 of 6/2% debentures; due Oct.
1, 1969, and 270,000 shares of common stock,, to be of¬
fered in units of $100 principal amount of debentures
and 13 shares of common stock.
Price—To be supplied
by amendments. Proceeds—For general corporate pur¬
poses, including the reduction of indebtedness and the

pprchase^End installation of machinery and equipment.
Address

—

Box

8169,

New

Orleans

f*nd#»r-

writers—H. M. Byllesby &

Co., Inc., Chicago, 111.; How¬
ard, '.Weil*. Labouisse, Friedriehs and Co., New Orleans,
La., and Mason-Hagan, Inc., Richmond, Va.
.

General Underwriters Inc.

April 6 (letter of notification) 225,000 shares of com¬
mon capital stock
(par 25 cents).
Of the total, 195,000
shares are" to be offered for the account of the company
and 30,000- shares for a selling stockholder. Price—$1 per
share. Proceeds—For furniture inventory and improved

merchandising methods, to finance the real estate depart¬
ment and insurance
policy loans. Office—211-315 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff Ark.
•

Gertsch

Sept.
par

Products, Inc.

filed

107,143

(10/30)

capital stock (without
value), of which 28,571 shares are being offered for

the account of the company and
offered for the accounts of
Price—To

be supplied

78.572 shares

are

to be

certaip selling stockholders.

by amendment.

Proceeds

—

For

working capital. Underwriter—Schwabacher & Co., San
Francisco and Los Angeles, Calif.
Giant Food l»*c.
Oct.

filed

(11/2-6)

200,000

(letter of

Inc.
notification)

1,000 shares of common
stock (par $1) and 4,000 shares of 6% cumulative pre¬
ferred stock (par $5). Price—Of common, $2 per share;
of preferred, $5.75 per share.
Proceeds — For working
capital and to establish an investment management com¬
pany. Address—P. O. Box 193, Clarksville, Ark. Under¬

of class

common

stock

America, Inc.
Feb. 4 filed 250,000 shares of common stock (par 1C
cents).
Price—At market.
Proceeds—For investment
Office —1825 Connecticut Avenue, Washington, D. C
Investment
Advisor
Investment
Advisory
Service,
Washington, D. C
Underwriter—Investment Manage
ment Associates, Inc., Washington, D. C. The statement
—

became effective July 24.

if Gulf States Utilities Co. (11/24)
Oct. 13 filed $16,000,000 of series A first mortgage bonds
1989.

Proceeds

off existing short-term
notes due Dec. 1, 1959, issued
under revolving credit
agreements to provide funds for construction purposes,
of which it is estimated $6,000,000 will be outstanding
prior to the date of sale of the new bonds, and the bal¬
ance will be used to carry forward the company's con¬
struction program
and for other corporate purposes.
Underwriter—To be determined by competitive bidding.
Pi-obable

—

pay

Halsey, Stuart & Co. Inc.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith Inc.
and White, Weld & Co. (jointly); Stone & Webster Secu¬
rities Corp.; Salomon Bros. & Hutzler and Eastman Dil¬
bidders:

lon, Union Securities & Co. (jointly). Bids—Expected to
be received up to 11 a.m. (EST) on Nov. 24 at the office
of The Hanover Bank, Room A, 70 Broadway, New York
15, N. Y.

if Guiton Industries, Inc. (11/24)
Oct. 22 filed 60,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds—For

Office—212 Durham Ave.,
Underwriters—Lehman Brothers and
York City.

general corporate purposes.

Metuchen, N.
G.

H. Walker

& Co., both of New

if Ha-man-HarHon,

Inc.

(11/19-23)

subordinated convertible
debentures due December 1969, and 196 400 °hares of
common stock
(par 25 cents), of which the debentures
Oct.

one

new

share for each five shares held.

supplied by amendment. Proceeds—For
construction, including the payment of short-term loans
incurred for this purpose.
Office—33 Elizabeth Street,
Derby, Conn.
Underwriters — Allen & Co., New York,
and

Bacon, Whipple & Co., Chicago, 111.

Hycorr Manufacturing Co.
Aug. 28 filed 126,316 shares of common stock, which
were issued to Avco Corp. on Dec. 8,
1958, at $2,375 per
shares, and which will now be publicly offered by Avco.
Price—To be related to the prices prevailing in the
over-the-counter market at the time, or times, the stock
is sold. Office—1030 South Arroyo Parkway, Pasadena,
Cailf. Underwriters—The offering will be made through
registered brokers and dealers who
•

Hydromatics, Inc.

are

NASD members.

(11/10)

Oct. 20 filed 105,000 shares of common stock
which

80,000 shares

are

(par $1), of

to be offered for the account of

company, and 25,000 shares are to be offered for the
accounts of the present holders thereof. Price — To be

supplied by amendment. Proceeds—For working capital.
Office—Livingston, N. J. Underwriters—Paine, Webber,
Jackson & Curtis, and Tucker, Anthony & R. L. Day,
both of New York.

I C

Inc.

June 29 filed 600,000 shares of common stock

Price—$2.50

per

share.

rate purposes and in

(par $1).
Proceeds—To further the corpo¬

the preparation of the concentrate

and

enfranchising of bottlers, the local and national pro¬
and
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office^—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver."
motion

filed $600 000

•

Indiana Gear

of 6/2%

Works, Inc.

Oct. 8 filed 100,000 shares of common stock (stated value

$2)

which, 25,000 shares are to be offered to em¬
ployees, and the remaining 75,000 shares are to be of¬
fered to the public. The public offering will include any
shares not subscribed for by the employees.
Price—To
be supplied

by amendment. Proceeds—To partially retire
which were used for acquisition of fixed
working capital. Office—1458 E. 19th St., In¬
dianapolis, Ind. Underwriter—City Securities Corp., In¬
dianapolis.
Offering—Expected in three weeks.
bank

Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below.

due

Colo.

Growth Fund of

Sept. 11.. £ilgd 150,000 shares of common stock. Price—$3
per shara./Proceeds—For. working capital, with $15,000

■<

★ Griffith & Co.,

the basis of

Price—To

(11/20)

of convertible subordinated de¬

writer—None.

Corp.

★ Housatonic Public Service Co.
Oct. 23 filed 76,642 shares of common stock (par $15)
to be offered for subscription by common stockholders

Lakes

Great Western

Oct.

6,000., shares of capital
to be offered to the employees of the

company. Price

General

&
'

par)

bank, loans.

Securities

conditions.

Inc. 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—T«
pay existing liabilities; for additional equipment; and
for working capital.
Office—East Tenth Street, P. O.
Box 68, Great Bend, Kan.
Underwriter—Birkenmaya*
& Co., Denver, Colo.

New York.
Co., Inc., New

—

Curtis/ and Eastman

In part to repay outstanding

Hickerson Bros. Truck Co.,
March 11 (letter of notification)

—

subscription by
(with a 14
spare parts, and equipment,the retiremehtr of debt, and ^day standby); on the basis of one new debenture for
each 22 shares then held; rights to expire on or about
the increased of working capital. Office — MacArthur
Dec. 4. Price—To be supplied by amendment. Proceeds—
Field, Islip, L. L, N. Y. Underwriter—Dunne & Co., New
For general corporate purposes, including the reduction
York. Offering—Expected any
.dayy
of indebtedness.
Office
4401 Crenshaw Blvd., Calif.
/ General
Acceptance Corp. (11/4) ;•'*
Underwriter—Lehman Brothers, New York.
,' Oct. 2 f?Vv'
subordinated debentures due
if Green River Production Corp.
Nov. 1, 1974,. with warrants for the purchase of common
Oct. 15 (letter of notification) 200,000 shares of common
stock, to be offered in units consisting of a;$i,000 de¬
benture and one common stack,purchase/warrant. Price _!stock (par 50 cents)y Price—$1.50 per share. Proceeds—
For expenses for exploring for oil and gas. Office—212
—To be supplied by amendment. Proceeds—For gen¬
Sixth Ave., South, Nashville, Tenn. Underwriter—Cres¬
eral corporate purposes. Office — 1105 Hamilton St.,
cent Securities Co., Inc., Bowling Green, Ky.
Allentown, Pa. Underwriters—Paine, Webber Jackson &
,'

—

bank

Office — 4400 W. National Ave.,
Underwriter—The First Boston Corp.,
Offering—Indefinitely postponed due to

York.

market

Bowling Corp.
Aug; 31 filed 120,000 shares of common stock (par $1).
Price—To be/supplied by amendment.
Proceeds—For
general corporate purposes, including the development
of
bowling lanes, bars, and restaurants on various
Michigan properties. Office—6336 Woodward Ave., De¬
troit; Mich. Underwriter—Straus, Blosser & McDowell,
Chicago, 111.
,
•
-

Gateway Airlines,/Inc.,'
Aug. 31 filed 400,000 shares of common stock (par 10
cents). Price^-$1.50 per share.. Proceeds -yr.Eor general
corporate- purposes, including, the purchase Uf' airplanes,

best

For

York. Statement

Refining Co. (ll'/23-2s7
Oct. 16 filed $6,000,000 of 6% convertible
subordinated;;
debentures.'; Price—At 100% of principal amount. Pro¬

Utah,

Underwriter—Mortimer

St:,

Underwriters—J. A. Hogle & Co., Salt Lake City,
and Garrett-Bromfield & Cok, and Peters* Writer1

New

Great American

ceeds

Frontier

Colo.

Proceeds

short-term

Milwaukee, Wis.

Publications, Inc.
11 filed 260,000 shares of common stock (par 10
cents) of which 195,000 shares are to be publicly oN

Underwriter—Blair & Co., Inei; New York.

ceeds—To purchase the common- stock of Western States
Refining CO; Office—4040 E. Louisiana Avenue, Denver,

and

corporate, purposes.

Aug.

•

type

loans

Expected in late November.

•

common

Proceeds-—To/selling stockholders. Business—Company
is engaged in the design, development, production *and;
distribution^ of builders' hardware,
primarily overhead
Sterling, 111.

bank

loans, expected to approxi¬
$4,000,000, with the balance to be used for general

mate

$1), - Price—To bb supplied by amendment. *

(par

offering.

unsecured

purposes, including the purchase of additional
equipment, investing in properties in the enter¬
tainment field, and the provision of funds for a down
payment on another building or buildings. Office—807
"E. 175th Street, New York, N. Y.
Underwriter—Arnold
Malkan & Co., Inc., New York.

four shares then held;

on or

• Frantz Manufacturing Co.

Sept/ 11

porate

about Dec. 2. Price—$5 per share.
For company; reserves and expansion.
Office — 475-79
Broadwayv Gary, Ind; Underwriter—None.-: \

reduction

purposes

studio

-•.

shareholders of record Oct. 15 at the

common

one

i-\

Proceeds—For

corporate

common stock (par $10).
Price—To be related to the market price of
outstanding
shares on the American Stock Exchange at the time of

.Gold Medal Studios, Inc.
Sept. 18 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For general cor¬

i
:

to be offered

★ Hawthorne Financial Corp.
Oct.
22
filed 165,000 shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—Tb selling stockholders.
Office— 301 South
Hawthorne
Blvd., Hawthorne, Calif.
Underwriter—
William R. Staats & Co., Los Angeles, Calif.
Offering—

Expected in late November.

nix, Ariz. Underwriter—O'Malley. Securities Co.. Phoe¬
First United Life Insurance Co.

issuing company"
are

itarnischfeger Corp.
Aug. 28 filed 2UU,0UU shares of

18 filed 572,500

■

nix.

stock

including new plant and
equipment.
Office—Westbury, L. I., N. Y. Underwriter
—Milton D. Blauner & Co., Inc., New York City.

Packing Corp.
shares of common stock (par one
supplied by amendment. Proceeds—To prepay the re¬
-cent), and 50,000 common stock purchase warrants. Of
maining balance of and accrued interest on an outstand¬
the shares 400*000 will be sold for the account of the
ing term loahP Underwriter-^TWilliam.;R. .Staats & Co.,
cbmpany; 110,000 by certain stockholders; 12,500 for the
Los' Angeles and San Francisco,7 Calif.^
*
-r :•
underwriter; and the remaining 50,000 shares are pur¬
chasable upon .exercise of the warrants. Price—$1.25 per
• First Northern-Olive Investment Co. *
^
share.' Proceeds—For repayment of debt; purchase of
Aug 17; filed 20 partnership interests in the partnership.
equipment and facilities and other general corporate
Similar filings were made* on behalf of other Northernpurposes. Office-^-614 Broad St.,
Olive companies, numbered "second-' through ^eighth."
Utica, N/ Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Price—$10,084 to $10,698 per unit. Proceeds—To purchase
Change — Formerly Eastern Packing Corp.
Offering—^
land in Arizona. Office—1802 North Central Ave., Phoe¬
June

common

President, Sidney Harman. Of the
116,400 common shares remaining, 20,000 are
being regis¬
tered under a restricted stock option
plan, 4,000 are
being reserved for key employees pursuant to stock
options, and 92,400 are being reserved for debenture

Office—9111

80,000 shares of the

for the account of its

Corp. of California (11/16)
filed 325.000 shares of outstanding capital stock.
To be supplied by amendment.
Proceeds — To

selling stockholders.

West*;( 11/2-6)
Sept. 28 filed 120,000 shares, of Capital jstbek (without
value)v of which 100,000 shares

Price

First Financial Corp. of the

par

•

and

Gibraltar Financial

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
•

to be offered for the account of the

are

ment. Proceeds—For

;

loans,

assets and

Industrial Leasing Corp.
June

(letter
6%

convertible

notification) $200,000 subordinated
debentures ($1,000 denomination) and

$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬
nue.
Portland 4
Ore
Underwriter—May & Co., Port¬
land, Ore. Clearance date was June 9.
'
inland Western Loan & Finance Corp.
Sept. 24 filed $1,000,000 of 6% capital debentures. Price
be supplied by
amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life
—To

Insurance Co.; to furnish operating capital for \subsidiaries; and to establish new subsidiaries or branches of
already existing ones. Office—10202 North 19th Ave.,
Phoenix, Ariz. Underwriter—The underwriters, if any,

will be named by amendment.

Integrand Corp.
13 filed 85,000 shares of common stock. Price—$4
per share. Proceeds—For general corporate purposes, in¬
cluding the redemption of outstanding preferred stock
and new plant equipment. Office—Westbury, L. I., N. Y.
Underwriter—DiRoma, Alexik & Co., Springfield, Mass.
Oct.

Intercontinental
Oct.

filed

Price—$3

Motels,

Ltd.

133,000 shares of common

per

stock

(par 10c).

share. Proceeds—To be added to
Continued

working^

on page

The Commercial and Financial Chronicle

(1820)*

—2546 S. W. 8th

Continued from 'ixige 35

St.,. Miami, Fla. Underwriter—Plymouth
Corp., Miami.

Bond & Share

capital in order to enable company to exercise options
motels and/or parcels of land. Office—Martinsville,
Va. Underwriter
G. Everett Parks & Co., Inc., 52

•

Lindberg Steel Treating Co., Inc.

Oct.

filed

all

their

—

Broadway, New York City. Offering—Expected

Resorts, Ltd.
Sept. 10 filed 99,000 shares of common stock (par So) to
"be offered first to stockholders on the basis of one new
«hare for each four shares held of record .Oct. 10, 1959;
rights to expire, on Nov. 30. 1 Price—To be
Proceeds—For construction of

Kalapaki Bay, on the Island of Kauai.
Royal Hawaiian Avenue, Honolulu, Hawaii.
—None.

;

supplied by
hotel

notes

the

Cumber¬

Canada.

common

stock,

$1, with

par

common

acquired by members of the Magnuson family

transfers

subsidiaries

and

properties

the

$106,000 will be used to close certain options
covering lands in the MelbourneCape Canaveral area; the balance will be added to the
general funds of the company and used for general
corporate purposes. Office—20 S. E. 3rd Ave., Miami,
Fla.
Underwriter—Blair & Co. Inc., New York. Offering
—Expected this Fall.
.

Marine

Corp., Milwaukee, Wis.
filed $5,000,000 of convertible
debentures, due
Nov. 1, 1974.
Price—To be supplied by amendment.
Proceeds—For general corporate
purposes, including the
provision of funds to other banks now controlled by the
issuing corporation. Underwriter—Robert W. Bai'rd &
Co., Inc., Milwaukee, Mis.

Ltd.

April 24 filed 225,000 shares of common stock. Price—9C
share. Proceeds—To defray the costs of explo¬
and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.
Office—1950 Broad St., Regina, Sask., Can
Underwriter — Laird & Rumball, Regina, Sask., Can
cents per

ration

if Mark II Mining Co., Inc.
J9 (letter of notification)
200,000 shares'of common
Price—At par ($1 per share).
Proceeds — For
mining expenses. Office—320 S. YV. Stark St., Portland,

Oct.

Development Corp.

stock.

Sept. 22 filed 200,000 shares of common stock (par $25).
Price—S27.50 per share, payable in cash or State of Israel
Independence Issue or Development Issue bonds.
Pro¬
ceeds—For general corporate purposes. Office—17 E. 71st

Ore.

Underwriter—None.

Mayfair Markets
Oct. 1

Underwriter—None.

Jocelyn-Varn 1960 Oil Associates
Sept. 28 filed 100 units of oil and gas exploration agree¬

filed 301,177 shares of

offered

to holders

share for

new

share.

per

each

share of

one

Guaranty common. Proceedsits proceeds fo rexpansion; Guaranty
proceeds for additional working capital.
both firms) 606 West Wisconsin Ave., Mil¬
use

common

such

stock

five shares

Proceeds—For

stock

the

(par $1), tc
basis of

then held.

general

Price

corporate

—

one

$10

purposes,

•/•

Mortgages, Inc.

;•

•3;;

Sept. 30 (letter of notification) $130,000 of 7%- 5-year
subordinated debentures to be offered in denominations
of $100. Price—At face amount. Proceeds—For
capital.

and purchase contracts

Oct.

Street, New York City.

—

company;

3Idg.

Aug." 14 filed 500 Beneficial Trust Certificates in the
UTust. Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H
St., N. W., Washington, D. C., and construct an office
fcuilding thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D. C., and Swesniek & Blum Securities

Israel

Price—60

purchase one share of such common stock at an initial
price of $11 per share. Price—For preferred, at par; and
for elass A,
$10.10; per share. Proceeds—$291,099 is to
be expended during the period
ending Aug. 31, 1960 for
mortgage payments and releases; $465,000 will be paid

Irando Oil & Exploration,

stock.

Thursday, October 29, 1959

waukee, Wis.
common

stock purchase warrants. Each share of class A common
stock carries one warrant entitling the
registered holder

(letter of notification)

its

use

Office—(of

per

shares of class A

and

Mortgage will

(amended

175,000 shares of class
A common stock (par 50 cents).
Price — $1 per
Proceeds—For equipment and working capital.
Offic*
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.

Corp. ;

•

June

Investment Trust for the Federal Bar

Magnuson Properties, Inc.
29 filed 500,000 shares of class A common stock
on Aug. 24 to 150,000 shares of 6)2% cumu¬
lative convertible preferred stock, par
$10), and 150,000

Ltd.

toon, Saskatchewan, Canada.
Underwriter
land Securities Ltd., Regina, Saskatchewan,

Office -305
Underwriter

Tuna .Corp.

■

Co.,

share.
Proceeds — For exploration, develop¬
and acquisitions. Office—5 Cobbold Block, Saska¬

ment

a new

S. Oils

Cruttenden, Podesta &

—

May 11 filed 390,000 shades of

Washington, D. C.
(series B, $500,000, two
year, 3% per unit; series C, $1,000,000, four-year 4%
unit; and series D, $3,500,000, 6-year, 5% per unit). PrH»
—100% of principal amount.
Proceeds —For workini
capital.
Underwriter—Johnston, Lemon & Co., Wa»b
•ington, D. C. Offering—Indefinitely postponed.
-

Gulfport, Miss.

cents

International Bank,

International

will

.Dec. 29 filed $5,000,000 of notes

Aug. 11

common

Park, 111.
Underwriter
Chicago, 111.

before

Inter-Island

amendment.

(11/16)

outstanding shares of

Mortgage Guaranty Insurance Corp. s
Sept. 23 filed 40,000 shares of common stock (par $10) in
a
joint registration with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage

class A stock (par $5). Price—To be supplied by amend¬
ment. Proceeds—To selling stockholders. Office—Melrose

the end of November.

85,035

Office—211

Mining. Exchange
Springs, Colo. Underwriter—None.
Mutual Credit

working
Colorado

Bldg.,

Corp.
Oct. 6 (letter of notification)
$300,000 of 6(2% convert¬
ible subordinated
debentures, series A, due Oct. 1, 1969.
Debentures are convertible at any time through Oct.
1,
1968 into class A non-voting common stock
(par $5) at
..

the

rate

100

debentures

—For

converted.

the

general

of such stock for each $500 of
Price—At face amount. Proceeds

funds

the

Office—c/o
Un¬
derwriter—Eastern Investment Corp., Manchester, N. H,
company.

Raymond F. Went worth; 6 Milk St., Dover, N; H.
•

Narda

Microwave

Corp.
50,000 shares of common stock (par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
June

warrant

filed

entitling the holder to purchase

one

additional

share.

The statement also includes an additional

10,000
to key
employees pursuant to options. Price—To be supplied
by amendment. Proceeds —I To be used to retire bank
common

stock

reserved

for

issuance

loans. Underwriter—Milton D. Blauner & Co., Inc., New
Statement has been withdrawn.

York.

if National Bellas Hess, Inc.
Oct. 27 filed $5,318,800 o£ convertible subordinated de¬
bentures, due Oct. 1, 1984, to be offered to common
stockholders
50

the basis of $100 of debentures for each

held.

Price—To

be supplied by amendment.
corporate purposes, including the
possible increase of investment in the issuing company's
life insurance subsidiary.
Office—14th Avenue & Swift
Street, North Kansas City, Mo.
Underwriter — Stern
Bros. & Co., Kansas
City, Mo.
>

Proceeds—For general

National Beverages, Inc.
Sept. 25 (letter of notification) 80,000 shares of common
sto^k (oar $1).
Price—$2.50 per share. Proceeds—For
building on company property, purchase of new vending
maciunes and
additional'working capital. Office—1030
South Sixth West Street, Salt Lake City, Utah. Under¬
writer—Peters, Writer & Christensen, Denver, Colo.

Price—$20,000 per unit. Proceeds—For locating,
including expansion and working capital. Office—4383
developing, and administering cil and gas producing
Bandini Boulevard, Los
Angeles, Calif. Underwriter—
properties.
Office—310 KFH Building, Wichita, Kan^ None.
'
*
1

National Citrus Corp.
April 20 (letter of notification)

Underwriter—None.

mon

ments.

•

Kayser-Roth Corp.

Oct. 5 filed 375,000

(11/10)

scares

(11

of outstanding common stock
to the market price on
Proceeds

(par $1). Price—To be related
Harrison

Factors

3—U-

erlands Securities Co.,

Inc., New York, N. Y.

(par

cents).

Price—$3

For

if Keystone Custodian Funds, Inc.

N. Y. Underwriter—Lee

filed

(by amendment) an additional 1,000,000
Keystone Custodian Fund Certificates of Par¬

ticipation, series Kl.

Office—Boston, Mass—

Interests undei
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
4^25.000 or mGre. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Blclg., Houston Texas.
Underwriter—None.

mon

Los

approximately 0.212 new shares for
each share held. Price—$25 per share.
Proceeds—In
part to repay a bank loan in the amount of $450,000 rep¬

Lenahan

Aluminum

Window

to be offered

new

Corp.

common

initially to stockholders

for

each

two

held

Oct.

on or

stockholders;

•

Lenkurt

Electric

Nov.

about Nov. 19.

Share Corp., Miami, Fla.

Calif.

Office

—

1105

County

Road,

San

Carlos,

Underwriter—None.

filed

43,210

common

stock,

reserved

Option Plan. Office—

Insurance Co.

Florida

(11/30-12/4)

Sept. 28 filed 203,476 shares of common stock (par $1).
Price—$4.50 per share. Proceeds—For expansion.
Office,

Corp.

filed

200,000 shares

if Minneapolis-Honeywell
or

may

150,000 snares of com-,
($2 per share).
Proceeds—

par

equipment, inventory and working, capital. Ad¬
O. Box 1658, Lakeland. Flax / Underwriter—
Campeau Co., Inc., Detroit, Mich. Statement to be

dress—P.
R. F.

amended.

National Co.,
Oct.

Inc.

14 filed

stock

(by amendment ) 100,000 shares of common
(par $1), of which (>"000 shares are to be offered

for the account of the

cor.
my and 40,000 shares are to
be offered for the account of a selling
stockholder, Louis

C. Lerner.
ceeds

Price—To

supplied by amendment. Pro¬

The company expects to use $250,000 to retire
without premium a portion of a term loan from Grace
National Bank of New York, and the balance of the pro¬
ceeds will be used to provide the additional working
—

capital

needed

for

realized

and

possible

increases

sales volume.

National

Aug. 4
Price

Industrial

filed
SI

—

Minerals

Ltd.

150,000 shares of common stock (no par).
per share.
Proceeds — To retire indebt¬

edness for construction of plant and for other
liabilities,
and the remainder will be used for operating capital.
Office

Laird

—

Regina,

Rumball

Saskatchewan, Canada. Underwriter—
Ltd.. Regina, Saskatchewan, Canada.

National Munsey Co.
Sept. 28 filed 293 limited partnership interests. PriceSo,000 per unit. Proceeds—To purchase land and erect

•

Underwriter—Tenney Securities Corp.

National

Standard Electronics, Inc.—
•
Sept. 25 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
For general corporate purposes.
Underwriter—Palombi

___

common

stock

Regulator Co.

Oct. 22 filed 165,650 shares of common
stock, which have

be issued

upon exercise of options under the
company's Restricted Stock Option Plans. Office
2747
Fourth Ave., Minneapolis, Minn.
"

Securities
•

Co., Inc., New York City.

National

Union

Fire

Insurance

Co.

(Pittsburgh,

Pa.)

Sept. 24 filed 200,000 shares of capital stock (par $5)
being offered for subscription by stockholders of record
Oct. 16, 1959, on the basis of one additional share of
capital stock for each three shares then held; rights to
expire on Nov. 16. Price—$32.50 per share.
Proceeds—
To increase capital and surplus. Underwriter—The First
Boston

Corp., New York.

—

Montgomery Mortgage Investment Corp.
16

filed

$3,000 units. Price—From $2,000 to
$4,000 per unit. Pro¬
ceeds—To purchase other second trust notes and to
main¬
tain a reserve for repurchase of notes under
its repur¬
chase agreements. Office—11236

Spring,
Life

Products

Georgia Avenue, Silver

€08 Madison Ave., Toledo, Ohio.
•

Price—At

stock.
new

City.
Medical

$3,000,000 of second mortgage notes and
accompanying repurchase agreements, to be offered in

if Libby-Owens-Ford Glass Co.
Oct.

Electro

common stock and 25 warrants.
Price—$275 per
Proceeds—For general corporate
purposes, includ¬
ing the discharge of indebtedness, the expansion of
sales efforts, and for
working capital. Office—79 Madison
Avenue, New York City. Underwriter—General Invest¬
ing Corp., New York.

Oct.

for employees holding series O options
granted pursuant
to the company's Employee Stock

For

buildingjs thereon. Office—535 Fif.h Avenue, New York

Angeles, Calif.

unit.

been

Co.

Aug. 31 filed 10,000 outstanding shares of class B com¬
mon stock. Price—$83.31 per share. Proceeds—To
selling
stockholder.

An additional

shares of

(par 50c),
the basis r* one

derwriter—Plymouth Bond

Brooklyn,

Co., New York, N. Y.

(par 10
cents) and 50,000 one-year warrants for the
purchase of
such stock at $3 per share, to be offered in units of 100

(11/4)

1959;
Price—$4 per share
public. Proceeds—For inventory
find for working capital.
Office—Jacksonville, Fla. Un¬

rights to expire

Proceeds—

St.,

(11/16-20)

stock

shares.

Micronaire

resenting funds acquired for general modernization, im¬
provement, and expansion. Underwriter—None.
•

share.

Dean

Office—4061 Transport St., Palo Alto. Calif. Underwriter
—None.
Financial Adviser—Hill, Richards &
Co., Inc.,

the basis of

July 28 filed 15*7,494 shares of

per

Office—964

138,000 shares may be issued
in connection with the
company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital

Kittanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common stock, to be of¬
fered by subscription to holders of outstanding common
on

working capital.

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969
together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com¬

Kilroy (W. S.) 1960 Co.
June 8 filed $3,500,000 of Participating

«tock

Y.
•

Metropolitan Telecommunications Corp. (11/5.-6)
Sept. 28 (letter of notification) 99,933 shares of common
stock

shares, $116 each. Proceeds—To selling stock¬
Office—Anchorage, Ky. Underwriter—None.

.shaves

•

holders.

metals

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares oi common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,©00 shares.
Price—Of 30,717 shares, $115 each; and of

Oct.

" >

debts; to acquire new equipment for processing
and to expand its overall
capacity; to move its
facilities and new equipment into a new
building and for
further development and expansion. Underwriter—Neth¬

the

Mil, Noyes & Co., New York.

51,000

Corp., Westbury,

retire

Processing

Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3
per share. Proceeds—To

the N. Y. S. E. at the time the offering begins.

—To

Meta.lurg.al

Md.

Underwriter—There

underwriter

Adrienne Investment Corp., an affiliate of the
issuing company, will act as sales agent, for which it
will receive a selling commission of 7%.
such, but

_•

•

National Video Corp. (1116-20)
Oct. 19 filed 283,307 shares of class A

stock

(par $1).

Each certificate for class A shares will bear ah endorse¬
ment

evidencing an interest in a Trust which will hold
all of the outstanding common stock of Rico Electronics,
Inc., a Puerto Rican manufacturing company affiliated
with National Video
amendment.

•

Corp.

Price

—

To Be supplied by-

Proceeds—To selling stockholders.

Chicago, 111.

Underwriter

—

Bache

New York State Electric & Gas Corp.
21 filed 467.247 shares oi common stock,

Oct.
to

offered

holders

Office—

Co., New York.

of outstanding

(no pgr),

common

stock

Volume

190

Number 5894

The Commercial and Financial Chronicle

(1821)
of record Nov. 20

15 shares then held.

tbe basis of

one

new

share for each

The rights are scheduled to

expire

Dec. 7. Price—To be supplied by amendment. Proceeds—
To discharge short-term
obligations incurred for con¬
struction, with the balance to be applied to expenditures
for construction.

Office—Ithaca, N. Y.

The First Boston

Underwriters—

Corp., Lehman Brothers, Wertheim &
Pierce, Fenner & Smith Inc.

Co. and Merrill Lynch,

North Carolina Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, to
be offered for subscription
by holders of outstanding

stock in the ratio of two

held.

Price—$2

per share. Proceeds—To reduce indebt¬
with the balance, if any, to be used as
working

edness

capital.
more

shares for each five shares

new

Office—Matthews, N. C.

security

dealers" will

Underwriter—One

offered

any

Co., Inc., New Ybrk;

underwriter.

Nu-Line Industries, Inc.
Sept. 28 (letter of notification)
ordinated
stock

debentures

$250,000

Oct.

due

1969

with

may
r

sub¬

common

purchase

warrants entitling the holders of the
purchase 25,000 shares of common stock
(par 10 cents).
Price—$1,020 per $1,000 debenture
with warrant for purchase of 100 shares of common stock
attached. Proceeds—For working capital. Office—Min¬
neapolis, Minn. Underwriter—Woodard-Elwood & Co.,
warrants

Pathe

Sept.

17 filed

400,000 shares of common stock (par 10
with warrants to purchase an additional
100,000
common
shares at $3.25 per share. Price — $3.75

per

Proceeds—For general

corporate

including the addition of working capital, the
of
indebtedness, and the provision of the

purposes,
reduction

$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York.
Office—245 W. 55th St., New York. Underwriter—Chauncey, Walden, Harris & Freed, Inc., New York.
Offering

—Expected in about 30 days.
500,000 shares of

common

Minneapolis, Minn.

(par 20 cents). Price—25 cents per share. Proceeds
—For working capital and investment
purposes. Office—
870 Quari St., Aurora, Colo. Underwriter—/None.
it Perrine Industries, Inc. (11/23)
filed $1,500,000 of 20-year convertible subordi¬
nated debentures due
1979, to be offered in units of
$500 and $1,000. Price—At par.
Proceeds—-To be used
Oct. 26

industrial

plants in the midwest and southeast
to spend $350,000 to equip these new

new

areas;

plants; $150,000 to further equip and improve the com¬
pany's Brooklyn plant; and $600,000 will be used to re¬
tire corporate indebtedness. Underwriter—S. D. Fuller
&

Co., New York.

Oak Valley Sewerage Co. (11/2-6)
30 (letter of notification) $145,000

of 5V2%

first

mortgage bonds series of 1958. Price—At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost of
construction of sewerage collection and disposal system
and to pay the costs and expenses of financing. Office
—330 Main St., Mantua, N. J.
Underwriter—Bache &

Co., Philadelphia,

Pa.

Oak Valley Water Co. (11/2-6)
30 (letter of notification) $125,000

Underwriter

—

first

Bache

Co., Philadelphia, Pa.

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter —
Assets Investment Co., Inc., New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept.
2, to deter¬
mine whether a stop order should be issued
suspending
-the offering.-: -—-—-r-rs,

★ Optron Corp.
Oct.

•

(letter of notification) 6,875 shares of capital
(no par), stated value $14.57; Proceeds—For rent,
furniture, fixtures, test equipment, sales, engineering,
Office—335

Salinas

St.,

Santa

Barbara,

Calif.

Underwriter—None

common

stock.

per share.

Price—$6
working capital.

Proceeds—For research and
Underwriter—Sutro Bros. & Co., New York.

^Oxford Chemical Corp.

(11/20)

employees. Any shares not so purchased plus an addi¬
tional 72,500 shares are to be
publicly offered. The re¬
maining 120,000 shares, representing outstanding stock,

$4.55

per

publicly

offered.

Price—To

share; to the public, $5

For general

funds.

Office

per

employees,

share. Proceeds—

166

Central Ave., S. W.,
Atlarda, Ga. Underwriter—Johnson, Lane, Space Corp.,
Atlanta, Ga.; Francis I. duPont & Co., New York; and
The Robinson-Humphrey Co., Inc.,
Atlanta, Ga.
—

Pacific Uranium Mines Co.
20 filed $3,000,000 of 6%

Oct.

secured notes, 675,000
stock purchase warrants, and 675,000 shares of
stock. $1,600,000 of the notes and
360,000 war¬
rants are to be offered to holders of
$1,600,000 of out¬
common

common

standing notes^ The remaining $1,400,000 of new notes
and 315,000 warrants are to he offered to American Secu¬
rities Corp., acting on behalf of their clients, for a total
sum of $1,344,000 fer the .notes and $56,000 for the war¬
rants.
;

•

capital stock to
be issued pursuant to options held by Marine Drilling,
Inc. Latter company will, in turn, offer its stockholders
rights to purchase two shares of Pan-Alaska common, at
20 cents a share, for each share of Marine
Drilling stock.
Marine Drilling also plans to sell 250,000 shares of the
680,000 Shares of Pan-Alaska it now owns. Underwriter
—Any stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,
Texas and Clark, Landstreet &

ville, Tenn., at

common

Kirkpatrick, Inc., Nash¬

price of 20 cents

share.

Pantasote Co.

Aug. 28 filed $2,700,000 of 6% subordinated sinking fund
debentures, due Oct. 15, 1974 (with warrants attached en¬
titling the holder to purchase 50 shares of common stock
of the issuing company for each $500 of
debentures).
Price—100% and accrued interest from Oct. 15. Proceeds
•—For

construction, equipping, and placing in operation
plant, with the balance to be used for general

new

Nov.

20,

1959,

the

share of preferred stock for each 35 of

stock then

held; rights to expire on Dec. 7. Price
be supplied by amendment. Proceeds—For
repay¬

ment of notes incurred for construction
program.

Under¬

writer—White, Weld & Co., New York.

„

—

N. J.

Underwriter—Amos Treat & Co., Inc., New York.
—
Expected sometime during the end of No¬
vember.

Radiation Dynamics, Inc., Westbury, N. Y.
Sept. 8 filed 25,000 shares of common stock.
The
pany proposes to offer to
subscribe to 11,325 shares

its
at

stockholders

$10

per

com¬

the

right to*
share, with war¬

rants to purchase an equal number of common shares afc
$12.50 per share, on the basis of one new share for eaclt

four shares held. Hayden Stone & Co. has agreed to
pur¬
chase 2,500 shares for its own account and to use its beat
efforts to place 11,175 shares with certain selected in¬
vestors

at $10 per

share, with warrants to purchase an
equal number of shares at $12.50 per share. Proceeds—
For working capital. Office—1800 Shames
Drive, Westbury, L. I., N. Y.
Underwriter—Hayden, Stone & Co.,
York.

Radio

Frequency Company, Inc. (11/2-6)
(letter of notification) 100,000 shares of com¬
stock (par $1). Price—$3 per share. Proceeds—For

Aug.

mon

general

corporate purposes.

Office

Medfield, Mass.

—

Underwriter—Myron A. Lomasney & Co., New York.
•

Ranney Refrigerator Co.

Oct.

filed

43.500

shares of

(11/2-6)

stock (par $2.50)
40,000 shares are to be offered for the account
issuing company and 3,500 shares, representing*
outstanding stock, are to be offered for the accounts o£
the present holders thereof. Price—$8 per share. Pro¬
ceeds
For expansion and working capital. Office—
Greenville, Mich. Underwriter — Campbell, McCarty &
Co., Inc., Detroit, Mich.
common

of which
of

the

—

•
Raub Electronics Research Corp.
Pik-Quik, Inc.
Sept. 17 filed 500,000 shares of common stock (par $1).
July 15 filed 165,000 shares of common stock (par $1),
Price—$3.50 per share. Proceeds—To place in operation __subsequently reduced by amendment to 115,500 shares,
80 food markets in
Florida, three of which will be lo¬ :,of which 100,000 shares will be offered to the public.
cated near West Palm Beach.
These three have been
Price—$8.50 per share. Proceeds—For general corporate
leased from International
purposes.
Office—1029 Vermont Avenue, N. W., Wash¬
Properties, Inc., a newlyformed Minneapolis real estate
ington, D.C. Underwriter—Weil & Co., Washington, D.CL
firm, for 15 years, with
options to renew. Office
Baker Bldg., Minneapolis,
•
Realsite, Inc. (11/2-5)
Minn. Underwriter
Craig-Hallum, Inc., Minneapolis,
July 28 filed 200,000 shares of class A stock (par 10»
Minn.
Offering—Expected sometime in November.
cents. Price—$3 per share. Proceeds—To
pay off mort¬
Pilgrim National Life Insurance Co. of America
gages and for working capital.
Office—Jamaica, L. I.*
N. Y.
Sept. 17 filed 100,000 shares of common stock (par $1),
Underwriter—Robert L. Ferman & Co.,-Miami,
—

—

of which

55,000 shares are to be offered first to stock¬
holders of record Aug. 31, 1959, and 45,000 shares (mini-_
mum) are to be offered to the public, which will also be

Price—$5

per

share. Proceeds

—

For general corporate

purposes, possibly including the enabling of the issuing
company to make application for licenses to conduct its
insurance business in States other than Illinois, the sole
State in which it is presently licensed. Office—222 W.
•

Pitney-Bowes, Inc. (11/9)

Oct.

13 filed 200,000 shares of common stock
(par $2).
be related to the New York Stock
Exchange
at time of offering. Proceeds—To retire short-term bank
loans

and

for

working capital. Underwriter—The First
Boston Corp., New York.
•

Plastic

Oct.

ing

Applicators, Inc.

(11/2-6)

filed $1,000,000 of convertible subordinated sink¬

fund

debentures,

Price—At 100% plus
1959.
Proceeds — For
general corporate purposes.
Office—7020 Katy Road,
Houston, Texas. Underwriter—A. G. Edwards & Sons,

accrued

St.

interest

since

due

1969.

Oct.

Louis, Mo.

Porce-Alume, Inc.
Aug. 3 (letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For expansion. Office—Alliance, Ohio. Underwriter—
Pearson, Murphy & Co., Inc., New York.
Producers

Fire & Casualty Co., Mesa, Ariz.
March 31 filed 400,000 shares of common stock to be
offered for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.
Underwriter—None.

.Pan-Alaska Corp. *-•

Aug. 7 filed 2,612,430 shares of

record

Price—To

Oct. 22 filed 227,500 shares of class A common stock
(par
25 cents), of which 35,000 shares are to be offered first to

also

one new

Adams St., Chicago, 111. Underwriter—None.

it Ovitron Corp., Detroit, Mich.
Oct. 27 filed 150,000 shares of

are

stockholders

offered any shares unsubscribed for by said stockholders.

stock
etc.

basis of

—To

of 5.%%

mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost of
construction of the water supply and distribution sys¬
tem; to pay the cost of a new 12 inch well to increase
tile company's supply of water; and to pay the costs and
expenses of financing.
Office—330 Main St., Mantua,
N.

it Piedmont Natural Gas Co., Inc. (11/20)
Oct. 22 filed 36,237 shares of cumulative convertible
preferred stock (without par value), to be offered to

common

June

Lamp & Electronics Corp.
Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
sinking fund debentures, series II, due Oct. 15>
1969, and 120,600 shares of Class A stock (par 10 cents).
Price
For debentures, 100% of
principal amount; for
stock, $5 per share. Proceeds—To acquire Radiant Lamp
Corp., of Newark, N. J., with the balance to be used a»
working capital. Office—40 Washington Place, Kearney,
vertible

New

Projects
Oct. 13 filed $1,500,000 of
participations in oil and gas
exploratory fund. Price
The minimum participation
will cost $10,000.
Office—Madison, N. J. Underwriter—
Mineral Projects Co., Ltd.

common

Under¬

Radiant

Petroleum

—

June

Office—1202 Myrtle St., Erie, Pa.
writer—John G. Cravin &
Co., New York.

Offering

Peerless Mortgage Co.

to establish two

—

rate purposes.

cents)

share, with warrants.

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 25<).
Price
$1.50 per share. Proceeds
For general corpo¬
—

News, Inc.

stock

various properties in New York State. Office—Hartsdale
N. Y. Underwriter—Alkow &
as

Temporarily postponed.

Oct. 12 (letter of notification)

Properties, Inc.

Sept. 3 filed 150,000 shares of common stock (par $2.50),
Price—$5 per share. Proceeds—To acquire and develop

Withdraw

Passaic, N. J.
Co., Inc., New York. Offering—

—

not

subscribed for at $2 per share.
Northern

corporate purposes. Office—26 Jefferson St,
Underwriter
Blair &

it Prudential Commercial Corp.
Oct. 21
stock

(letter of notification) 150,000 shares of common
one cent).
Price—$2 per share. Proceeds—

(par

For general corporate purposes.

Office—City of Dover,
County of Kent, Del. Underwriter—All State Securities,
Inc., 80 Wall Street, New York, N. Y.
Puerto

Oct.

Rico

filed

Industries,Inc.
48,500 shares of class

A common stock,
stock, and $388,000
of 6% subordinated debentures, due July 1, 1971.
With
the exception of 151,500 shares of class B common allo¬
cated to the organizers of the company at par, the secu¬
rities are to be offered to the public in units of $4,000
of debentures, 500 class A shares, and 500 class B shares.
Price—$5,000 per unit.
Proceeds—For investment in
the securities of its subsidiary, Puerto Rico Meat Pack¬
ing Co., Inc., which will use the funds, estimated at
$600,000, as operating capital. Address—P. O. Box No.
622, Little Rock, Ark. Underwriter—None.
200,000

class

common

Fla., and Godfrey, Hamilton, Magnus & Co. Inc., New
York.

•

Rek-O-Kut Co.,

lnc.

(11/9-13)
/
Sept. 25 filed 214,000 shares of common stock (par 25e>, of
which 142,666 shares are to be offered for account of the?
issuing company and 71,334 shares are to be offered for
the accounts of the present holders thereof.
Price —
$3.50 per share. Proceeds — For general corporate pur¬
poses, including the repayment of indebtedness and for
tooling and production. Office—38-19 108th St., Corona*
L. I., N. Y. Underwriter—D'. A. Lomasney &
Co., New
York.
•

Reserve Insurance

Oct.

62,676
161

Co., Chicago, III. (11/16-20)
shares of capital stock, of which
to be sold for the company's account and 48,-

filed

are

110,837
to

are

sold

for

the

account

certain

selling stockholders.

Price—To be supplied by amend¬
added to the general funds of
the company to enable it to finance a larger volume of
ment.

Proceeds—To

underwriting and to expand its
derwriter—A. G.

Becker

area of

operations.

Co.

Inc., Chicago, 111.
offering will not be made in New York State.

Un¬

This

Rondout Corp. (11/2-6)
Sept. 4 filed 155,000 shares of common stock, of which
140,000 shares are to be publicly offered. Price—$3.50
per share. Proceeds—To buy the capital stock of Rond¬
out Paper Mills, Inc., and to purchase notes of said

company, currently held by Arrowsmith Paper Corp.,
with the balance to be used for general corporate pur¬

including working capital, Office—785 Park Ave.,
York, the address of the corporation as given in
registration statement, is the home address of Leif
B... Norstrand, President of the issuing company. Pur¬
suant to the contemplated merger of Rondout Paper
Mills, Inc. into Rondout Corp., it is anticipated that
Rondout Corp., as the surviving company, will conduct
its business from 41 E. 42nd St., New York, the present
office of Rondout Paper Mills, Inc.
Underwriters —
poses,

New
the

Sandkuhl & Co., Inc., Newark, N. J.; and S. B. Cantor
Co., New York.

Rosemount Engineering Co.

(letter of notification) 22,609 shares of common
(par 75 cents) of which 7,799 shares are to be
offered to the employees of the company and the re¬
Oct

stock

mainder

the

public. Price—To employees, $12.83 per

share; to the public, $13.50 per share. Proceeds—To pay
outstanding bank loans and for working capital. Office
—4900 W. 78th St., Minneapolis, Minn.
Underwriter—
White, Weld & Co., Minneapolis.
Roulette Records, Inc.'
Aug. 27 filed 330,000 shares of common stock (one cent),
of which 300,000 shares are to be publicly offered. Price
—$3.50 per share. Proceeds—For general corporate pur¬
poses, including moving to new quarters and installing
f

Continued

page

(1822)

The Commercial and Financial Chronicle

Continued from

page

executive offices and sound studio facilities

therein,

trol and test equipment; advertising and for working
Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen,-Inc., Denver,

quiring technical equipment and machinery, and adding
to
working capital.
Office
659
10th Avenue,
New
York.
Underwriter—Chauncey, Walden, Harris & Freed,
Inc., 580 Fifth Avenue, New York.
Offering—Expected

is expected

Colorado.

York

—

in three

St.

Simon

1960.

subscription by common stockholders on the basis of
$10 principal amount of debentures for each 10 shares
held. Price—At 100% of
principal amount. Proceeds—

open

inventory accumulation with the balance, estimated
at $125,000, to be added to
working capital. Office—
South St.
Paul, Minn. Underwriter—White, Weld & Co.,

Sams & Co.
,

(11/4)

Oct. 6, 1959 filed 500,000 shares of
common stock
(par
$10); to be offered for subscription by common stock¬
holders

the

basis

one

new

for

each

eight

shares held of record Nov.
4; rights to expire Nov. 24.
Price—To be supplied by amendment.
Proceeds—To re¬
imburse treasury funds of the
company.
Office—San
Diego> Calif. Underwriter—Blyth & Co., Inc., New York
and San Francisco.

Savage Boats, Inc., Reynoldsville, Pa.
7 (letter of
notification) 20,000 shares of class

Oct.

Scaico

Underwriter—None.

Controls, Inc.
(Jeter of notification) 240,000 shares of com¬
stock (par 10
cents). Price—$1.25"per share. Pro¬
ceeds—For research and
development; increaese of plant
facilities;. sales and training program; sales promotion
,

Sept. 23

for

general corporate

purposes.

Office—P.

Box

41, 450 Cooper St., Delanco, N. J. Underwriter—Albion
Securities Co., Inc., 11
Broadway, New York 4, N. Y.
• Scott &
Fetzer Co. (11/16-23)
Oct. 15 filed 100,000 shares of
outstanding common stock.
Price—To be supplied by amendment.
Proceeds—To two
company officials, the selling stockholders. Office—1920
West 114th Street,

ald &
York.

Cleveland, O. Underwriters—McDon¬
Co., Cleveland, and Kidder, Peabody & Co., New
v

it Scott-Mattson

Farms, Inc.

selling stockholders. Office—Professional
Building, Ft.
Pierce, Fla. Underwriter—R. S. Dickson & Co., Char¬
lotte, N. C.

it Seligman & Latz, Inc.
250,000 shares of common stock. Price—To be
supplied by amendment. Proceeds—To
selling stockhold¬
Business—The company operates 259
beauty salons
in* leased- premises in
leading department and

ers.

stores. Underwriter—F.

Life

specialty

Eberstadt & Co., New

Insurance

York.

Co.

Aug. 26 filed 25,000 outstanding shares of common
stock
(par $1)\ Price — $20 per share. Proceeds
To selling
stockholder. Office—400 West
Vickery Blvd., Fort Worth,
—

Underwriter—Kay

and

Texas.

Company, Inc., Houston,

Servo Corp. of America
Sept. 11 filed $1,000,000 of
Oct 1,1974. Price—100% of

stock

conv.

subord.

debens.

due

principal amount. Proceeds—

activities; and $100,000

for

general corporate
purposes.
Office—20-20 Jericho
Turnpike, New Hyde Park, L. I.,
N. Y. Underwriter—Ira
Haupt & Co., New York.
Sheaffer (W. A.) Pen Co.
Oct. 5 (letter of
notification). An undetermined number
of shares of class A
common stock

stock

(par $1) not

purchased

employees
least

Proceeds—To

retire

five

who

have

years.

(par $1) and class B
$50,000. The shares

to exceed

blocks
been

Price—At

Stock

not

less

with

the

most

than

five

Invest

the

bank

seven

70%

the

capital

stocks

subsidiaries; to

six

the

connection

sale

their

shares.

Southern Gulf

(11/2-6)
stock

(par 5c).
Proceeds—For

general corporate purposes, including
expansion. Office—
7630

Biscayne Blvd., Miami, Fla.
Underwriter—Jaffee,
Leverton, Reiner Co., New York.
Southwest Airmotive Co.

Sept. 18 filed 200,000 shares of common stock
(par $1), of
which,100,000 shares are to be offered for the account of
tne issuing
company, and 100,000 shares are to be offered
for the accounts of the
present holders thereof. Price—
To be supplied
by amendment. Proceeds—Together with
other funds, will be used for
general corporate

purposes,
including the addition of working capital, and the
pro¬
viding of funds for adding to jet-engine overhaul facil¬

ities, including the purchase of shop equipment and
special tooling required for this
purpose. Office—7515
Lemmon Ave., Dallas, Tex.
Underwriters
Rauscher,
Pierce & Co., Inc. and Dallas
Rupe & Son, Inc., both of

Dallas, Tex.

New York.
•

company
recent

for

Midwest

Exchange quotation. Proceeds
For working
capital. Office
301 Avenue H, Fort
Madison, Iowa.
Underwriter—None.
—

—

Shield Chemical Ltd.

Sept. 8

(letter of notification)
95,000 shares of capital
stock (par 10 cents).
Price—$1.50 per share. Proceeds—
To purchase and install

manufacturing equipment;

con¬

the rate of

filed

(Delaware) Inc.
$2,000,000 of 6% 10-year convertible

bentures (subordinated), due Jan.
1, 1969. Price—To be
supplied by amendment.
Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to
for

pay

other

installations, fixtures

and equipment; $85,000
establishments by increasing the
by eight at Yorktown Heights and

to expand two
present
number of alley beds

by six at Wilton Manor Lanes, Fort
Lauderdale; $300,000
deposits on leaseholds, telephones and

Oct.
•

the

SEC

suspended

utilities; and

Underwriter—None.
On
the registration statement.

Sports Arenas

(Delaware) Inc.
filed 461,950 shares of common stock
(par one
Price—At the market (but in no event
less than

Nov.

cent).
$6 per share).

Proceeds—To selling stockholders. Office
—33 Great Neck
Road, Great Neck, N. Y. Underwriter

—None.

statement.

Oct. 27 the SEC suspended the
registration

—For

working capital and general corporate purposes.
St., New York 17, N. Y. Underwriter
Co., Inc., New York, N. Y.

Office—150 E. 43rd
—R. G. Williams &
State

Industries

note; for working
capital; for expenditures by Strategic-Udy
Metallurgical
Chemical Processes Ltd., which owns and
operates
a pilot plant at
Niagara Falls,,-Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal
subsidiary,
and by its other direct
subsidiary, Strategic-Udy Pro¬
cesses, Inc., which owns and operates a
laboratory at
Niagara Falls, N. Y.; as working capital for a
mining
subsidiary; for payment of a mortagage; and as
working
capital for another subsidiary. Underwriters — S. D.

Oct. 5 filed $500,000 of 6%
convertible subordinated de¬
bentures, due Oct. 1, 1974. Price—At 100% of

principal,
Proceeds—For general corporate
purposes, in¬
cluding the purchase and installation of a modern
paint>
plant, and the purchase and installation of new tube mill
equipment. Office—4019 Medford St., Los
Angeles, Calif.
Underwriter—John Keenan & Co.,
Inc., Los Angeles.
it Stauffer Chemical Co.
amount.

Oct.

served

filed
for

Co., Buffalo, N. Y.; and Allen & Co., New Yori;.

Superior Manufacturing & Instrument Corp.
Oct. 12 (letter of
notification) 80,000 shares of common
.

stock

(par 50 cents).
For general corporate

25.412

issuance

Price—$3

shares
upon

the

common

exercise

stock, to be
of

options

re¬

out¬

per

share.

Proceeds~r-

purposes.
Office—154-01 Barclay
Ave., Flushing 55, N. Y. Underwriter—D. A. Lomasney
& Co., New
York, N. Y.
1

Supermarket Service, Inc.
14 (letter of
notification) 9,000 shares of common
stock (no par). Price—$11.50 per share*
Proceeds—For
working capital. Office — 103 E. Main St., Plainville,
Oct.

Conn.

Underwriter

Conn..

«'

Sylvania

—

;

Andrews. & Co., Hartford,
'

Electric Products,

Inc.

■

(11/4)

Sept. 1 filed $25,000,000 of sinking fund debentures, due
Sept 1, 1984. Price — To be supplied by amendment
Proceeds—To

applied

indebtedness.

Office—730

Third

Avenue, New York. Underwriters—Paine, Webber,
Jackson & Curtis, and Halsey, Stuart & Co.
Inc., both
York.

•

Tennessee Gas Transmission Co.

Aug. 21 filed 473,167 shares of common stock (par $5);
beirig exchanged for common stock of East Tennessee
Natural Gas Co.

on the basis of one share of Tennessee
Gas Common for 2.75 shares of East Tennessee
common.;
This offer is subject to various conditions, one of which

East

redeemed

Tennessee

and

cumulative preferred stock ($29
shall have been purchased or

cancelled.

East

Tennessee

presently

negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer,

$4,568,785 of the proceeds of which

will be

applied to the redemption of the 5.20% cumulative preferred stock. Exchange offer will expire on Nov.
16, 1959, unless otherwise extended. Office—Tennessee

Bldg.,

Houston,

Texas.

Webster Securities
New York.-

Dealer-Managers

—

Stone

Corp., and White, Weld & Co., both
Oct. i.
i

Statement effective

ic Tennessee Gas Transmission Co. (11/10)
21 filed 300,000 shares of cumulative
convertible;

Oct.

second

plied

preferred stock (par $100).
Price—To be sup¬
amendment.
Proceeds—To reduce short-ternf

debt incurred for

Underwriters

expansion.

Stone

Office

—

Houston, Texas;

Webster Securities Corp., and
White, Weld & Co., both of New York City.
—

Tex-Tubef Inc.
Oct.

filed

of which

150,000 shares of common stock, (par $1),
100,000 shares are to be offered for the account

the issuing company and
50,000 shares, representing
outstanding stock, are to be offered for the account of
the

present

holders thereof.

Price—To

be supplied by
discharge bank loans, for
improvements, and to increase working fundsOffice—1503 North Post Road,
Houston, Texas. Under¬
writer—Moroney, Beissner & Co., Houston.-OfferingExpected in early November.

amendment.

(11/10)

$1), to

•

Standard Beryllium
Corp. (10/26)
Sept. 3 (letter of notification) 150,000 shares of
common
stock (par one cent).
Price—$1.50 per share. Proceeds

stock (par

common stockholders at
share for each five shares held.
Price

—To be supplied by amendment.
Proceeds—For payment
of bank loans; for
payment of a

par)
de¬

common

subscription by

one new

is that all of the 5.20%

Sports Arenas
18

filed

Strategic Materials Corp.

of New

•
Span America Boat Co., Inc. (11/9)
Sept. 9 (letter of notification) 175,000 shares of common
stock (par 25
cents). Price—$1 per share. Proceeds—To
purchase raw materials; for sales
program and working
capital. Address—Exposition
Park, Fort Dodge, Iowa.
Underwriter
R. A.
Holman & Co.,
Inc., New York,

18.

Lunt &

Utilities, Inc.

Aug. 24 filed 135,000 shares of common
Price—To be supplied by amendment.

Nov.

June 29 filed 368,571 shares of

the company officials, who are
pay a
10% commission to
the

about Nov.

filed

be offered for

may

with

$6,400,-

Statement effective Oct. 15.

i'ered

prod¬

offering,

each

Corp. (Cleveland, Ohio)
v
90,000 shares of common stock, to be ofr
employees under the issuing company's 1959
Executive Stock Option Plan.

other types of financing in which the
company
Office — 615 Ilillsboro St., Raleigh, N. C.

the

about Nov. 4 and will
expire on

Oct.

may engage.

for

to stock¬

Stouffer

common

Southern Frontier Finance Co.

dealers

—None.

Aug. 11 filed 1,300,000 shares of common stock
(par 50
cents).
Price—$1 per share.
Proceeds—For working
capital and to be used for the purchase of receivables
covering the installment financing of consumer
or

new

per share
be publicly

Corp.
,
$225,000 of 6% to 7% first mortgage con¬
vertible serial bonds due
1965-1975, and 500,000 shares
of common stock
(par $1). Price—For bonds, 100%; and
for common stock, SI
per share;
Proceeds—For working
capital.
Office—Steamboat Springs, Colo.
Underwriter

to retire certain longterm indebtedness; and to
develop citrus groves. Office
—250 South Easf First Street, Miami,
Fla. Underwriter
—Bear, Stearns & Co., New York. Offering—Indefinite.

ucts

one

Storm Mountain Ski

company's

repay a bank loan of

basis of

Price—$4.62 Vz

Stelling Development Corp.
June 3 (letter of
notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For mortgages, land,
paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa
2, Fla. Under¬
writer—Stanford Corp.,
Washington, D. C.
Oct.

000; to add to working capital;

•

Under¬

outstanding at the date of the stock offering;

held.

Washington St., Bloomirigton, 111.
Underwriter—Whi(e
Co., St. Louis, Mo,
The warrants will be mailed out

the account of

amendment.

the

then

(Formerly South Dade Farms, Inc.)

$395,000 for working capital.

(11/6)

$300,000 for working
capital; $300,000 for increased de¬
velopment and research, with
particular attention to
civilian products;
$200,000 for plant relocation and con¬
solidation at the
Hicksville, N. Y., site and for expansion
of equipment;
$100,000 for sales promotion and
related

may

Northern

for

•

common

—

Octi 28 filed

Texas.

Proceeds—To

stores

—

Oct. 27 filed 67,500 shares of
outstanding common stock.
Price — To be supplied
by amendment.
Proceeds — To

Service

retail

stock.

the company, and
457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
of certain selling stockholders.
Price—To be supplied
by

making

mon

and

additional

Underwriter—None, but
A

6% cumulative preferred stock
(par $5) and 20,000
shares of class B common stock
(par 20 cents) to be
offered in units of five shares of class A
preferred and
five shares of class B common.
Price—$37.50 per unit.

Proceeds—For working capital.

15, 1959,

offered at
$5 per share. Proceeds—For general
corporate purposes,
including the developing of three drive-in restaurants
on
company-owned building sites. Office—1700 West

half-units

July 29 filed 2,000,000 shares of common stock
(par $1),
which 1,543,000 shares are to be
issued and sold for

Diego Gas & Electric Co.

common

Samson Convertible Securities
Fund, Inc.
July 15 filed 200,000 shares of common stock. Price—To

San

one

Sottile, Inc.

Underwriters—Indianapolis Bond &
Share Cofp, and Kiser
Cohri, & Shumaker, Inc., both of
Indianapolis, and Walston & Co., Inc., of New York
City. Offering—Expected sometime in November.

pected; in late October.

offered

writer—McDonald & Co., Cleveland, Ohio.

Indianapolis, Ind.

Distributor—Samson Associates, Inc. Offering—Ex¬

Office—Orrville, Ohio.

outstanding stock, are to be offered for the accounts of
the present holders thereof.
Price—To be supplied by
amendment.
Proceeds—To be used as working capital
and to reduce indebtedness.
Office—1720 East 38th St.,

eral

also

Office—380 Madison Avenue, New

holders; unsubscribed shares will

(J. M.) Smucker Co. (11/16-20)
Oct. 12 filed 165,000 shares
of outstanding common stock
(no par). Price—To be supplied by amendment. Proceeds
—To selling stockholders.

Oct.

supplied by amendment. Proceeds—For investment.
Office—23 Hazelton Circle, Briarcliff
Manor, N. Y. Gen¬

will

Sept.
9

California, with the balance to be used for general
corporate purposes. Office — 800
Broadway, Oakland,
Calif. Underwriters—J. S. Strauss &
Co., and York &
Co., both of San Francisco, Calif., arid Mason
Brothers,
Oakland, Calif.
-

New York.
It is expected that the warrants will be
mailed out about Nov. 6 and will
expire about Nov. 23.

• (Howard W.)

securities

$500 debenture and 50 shares of
Price—To be supplied by amendment.

For

21 filed 88,000 shares of
common stock
(par $1),
of which 50,000 shares are to be offered
for the account
of the issuing
company, and 38,000 shares, representing

The

one

shortly.

City.

Steak'n Shake, Inc. (11/4)
Aug. 24 filed 65,505 shares of common stock, to be of¬

(no par), to be offered in units of $1,000
principal amount of debentures and 100 shares of com¬
mon
stock, transferable only as units until March 31,

filed

Thursday, October 29, 1959

fered by subscription by common stockholders of
record

stock

mon

Paul Ammonia

Products, Inc.
$1,249,849 of 10-year 6% convertible sub¬
ordinated debentures, due Dec.
1, 1969, to be offered for
Oct.

Hardware Co.

Sept. 14 filed $800,000 of 7% sinking fund subordinated
debentures, due Sept. 30, 1971, and 80,000 shares of com¬

four weeks.

standing under the Stock Option Plan of Victor Chemical
Works, the merger of which into tne issuing company

capital.

ac¬

Proceeds

—

capital

Timeplari Finance Corp.
(letter of notification)

Oct. 8

28,570 shares of cumula-]
(par $5) and 14.285 shares of com¬
(par 10 cents) to be offered in units of one.'

tive preferred stock
mon

stock

share of preferred and one-half share of

—$10.50

per

common.

unit. Proceeds—tFor working capital.

Price-

Office

Volume

190

Number 5694

The Commercial and Financial Chronicle

(1823)

Cv
Main

—Ill

St.,

Texas National

Morristown, Tenn.

•

Underwriter—

Corp., San Antonio, Tex.

Tower's Marts,

Inc.
Aug. 28 filed 300,000 shares of class A common stock
(par 10 cents). Price—$3 per share. Proceeds—To re¬
duce indebtedness by about $300,000, with the balance
to be added to working capital of the
company and its
subsidiaries;
Office—210 East Main Street, Rockville,
Conn.

each five
will

and

;

and

xV ~

•

Development Corp.,

Transportation Plan, Inc.
Oct. 7 filed $600,000 of 7% convertible subordinated
debentures,"due November, 1969, 60,000 shares of com¬
mon stock (par one cent) and
30,000 common stock pur¬
chase warrants, to be offered in units consisting of
$100

2,000,000 shares of common stock (par $1),
consisting of $100 principal amount

to be offered in units

stock.

common

Price-

San

stock; of which

420,000 shares

are to be offered for the account of the
issuing company,-and. 225,000 shares are.to be offered

accounts ,of

subsidiary,

and

present holders

liquidate

added

the

stock

common

Beverly

the

general

thereof.

Price

unpaid

balance for
with the bal¬

subsidiary,
funds.

Boulevard, Los Angeles, Calif.

W./R. Staats

"Office

8001

—

Underwriter—

Co., Los Angeles, who has acquired for
in exchange for $20,000 cash the

investment purposes

10,000 shares of the filing not accounted for above.

TriMefaU

Works, Inc.
*
^
(letter of notification) 60,000 shares of 40 cents
cumulative convertible preferred stock (par $1). Price
—$5 per share. Proceeds—For general corporate pur¬
poses. Office—Bannard & Warrington Aves., East Riverton, N. J. Underwriter—R. L. Scheinman & Co., New
York, N. Y.

one com¬

common

offered to the founders Of the company

Price—$5.05

stock

and to

unit. Proceeds—For
general corporate purposes, including the purchase of
supplies, machinery, and equipment, ancNhe leasing of a
'Los Angeles plant for manufacturing purposes. Office—
235 Montgomery St., San Francisco, Calif. Underwriters
—Wilson, Johnson & Higgins of San Francisco,' and
Evans, MacCormaek & Co., of Los Angeles.
Statement
was

expected to become

per

effective

about

Oct. 27.

Val Vista
•June 29

Investment Co., Phoenix, Ariz.
filed 80 investment contracts (partnership

curities Co.

of America
fifed $4,000,000 of Variable Annuity Policies.
less than $120 a year for annual* premium»
contracts and no less than $1,500 for single 'premium
cont
cts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.
April 21

Price—No

Vita-Plus Beverage Co., Inc.
^
Aug* 11 (fetter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation
of a program of national distribution and for working
capital. Office—373 Herzl St., Brooklyn, N. Y. Under¬
writer—Glen Arthur & Co., New York, N. Y.
Vulcan Materials Co.,

filed

$5,500,000 of participations in Programs
6001-4. Price—$5,000 per unit. Proceeds—For acquisition
and development of undeveloped oil and gas properties.
Office—Longview, Texas. Underwriter—None.
Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds — For investment.
—

Office—South

Main

Street,

Statement effective Aug. 1L

Variable Annuity Life Insurance Co.

1960 Trice Oil and Gas Co.
Oct.

efess A ,share and

170,OOO.shares of

Greenville.

Under¬

writer—To be supplied by amendment. Statement effec¬
tive Sept. 25.

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds, to be offered
in denominations of $500 and $1,000 each.
Price—100%
of principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.

Inc.

June 29 fifed 10,000 shares of 6!/4%
stock and

560,000 shares of

cumulative preferred

common

stock, to be offered

to the stockholders of Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange

for all the outstanding capital stock of these three cor¬

porations, and to the

owner

of Sherman Concrete Pipe

Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook,
became effective on July 20.
•

Waltham

West Florida

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
$10 per share. Proceeds — For acquisition of
operating * properties, real and/or personal, includinf
office furniture, fixtures, equipment and office space, bj
lease or purchase. Office — Wilmington, Del.
Under¬
—

writer—None.
President.

Myrl

McKee

^ United Marine, Inc.
Oct.; 23 filed $1,250,000

Portland,

Ore.,

Ala.. Statement

6% sinking fund debentures,
due Dec. 1, 1974, with warrants to purchase 100 common
shares for each $1,000 of debentures, and
)25,000 shares
of common-stock (par
common

shares and

SI), to be offered in units of 100
$1,000 of such debentures. Price—

$1,125 per-unit. Proceeds—For the acquisition of Rich¬
ardson Boat Co,, Inc., and Colonial Boat
Works, Inc., and
expenses incidental thereto. Office—Millville, N. J. Un¬
derwriter—Boenning & Co., Philadelphia, Pa.

^ United Merchants & Manufacturers,
Oct. 22 filed $500,000 of interests in its

Inc.
Employee Stock

Purchase

Plan, together with -30,000 common shares
which/may be issued pursuant to said plan, 56,500 com¬
shares for issuance under the Executive
Employee
Restricted Stock Option Plan of 1951, and 100,000 common

moji shares-for issuance under its Executive Employees'
Restricted Stock Option Plan for 1959.
Office — 1407

Broadway, New York City.

July 28 filed $1,065,000 of participations in partnership
interests. Proceeds—To purchase land and buildings of
Waltham Engineering and Research Center, Waltham,
Mass., and for expenses connected to the purchase. Of¬
fice—49 W. 32nd Street, New York 1, N. Y.

Underwriter
—The First Republic Underwriters Corp., same address.

Washington Mortgage and Development Co., Inc.
Sept. 29 filed 100,000 shares of common stock (par 10c)
Price—$5 per share. Proceeds—For investment in mort¬
gage notes secured by real estate. Office—1028 Connecti¬
cut Ave., N. W. Washington, D. C. Underwriters—Amer¬
ican Diversified Mutual Securities, Inc. and Gildar &
Co., both of Washington, D. C.
Washington Planning Corp. (11/2-6)
(letter of notification) 24,286 shares of

new class
(par 10 cents). Price—$3 per share. Proceeds—
To go to the company. Office—52 Broadway, New York
4, N. Y. Underwriter—Heft, Kahn & Infante, Hempstead,
N..Y.

A stock

Waukesha Motor Co.

Oct.

filed

approximately

100,000 shares of common
stock being offered for subscription by common stock¬
holders

the,basis of

share for each five shares
held of record Oct. 27, 1959; rights to expire on Nov. 12.
Price—$39 per share.
Proceeds—To repay bank loans
and for working capital.
Underwriter—Merrill Lynch,
Pierce. Fenner & Smith, Inc., New York.
on

Natural Gas Co.

consisting of

one $100 debenture and a warrant to pur¬
chase three shares of class A common stock. Proceeds—

To be

applied, together with moneys in the sinking fund
issuing company, to the redemption of the out¬

20-year debenture bonds at their redemp¬
price of 103% of their principal amount. Office-—
Maple and 3rd Streets, Panama City, Fla. • Underwriter

tion

—Beil &

Hough, Inc., St. Petersburg, Fla.,

•

Western

Heritage Life Insurance Co.. /
Aug. 26 filed 500,000 shares of common stock., Price—
$2 per share. Proceeds—For general corporate purposes.
Office—533 East McDowell Road,

Phoenix, Ariz. Under¬
Some of the shares may be sold by sales¬
employed by the company, or by registered brokerdealers. A commission not to-exceed
17%, or 34 cents
per share, may be paid to sellers of such shares.
men

Western

Oct.

Reserve Life Assurance Co.

filed

100,000 shares of common stock, to .be of¬
subscription by stockholders at the rate of .one

share for each share held. Price—To be
supplied by
Proceeds — For working capital/ Office-

amendment.

Cleveland,

Ohio.: Underwriters—McDonald & Co., and
Ball, Burge & Kraus, both of Cleveland, Ohio.

it Western Wool Processors, Inc.
(letter of notification) 450,000 shares of

Oct. 19
stock

(par

cent).

one

common

Price—50 cents per share.

Pro¬

ceeds—To retire notes and for

working capital,and .sup¬
Office—314 First National Bank Bldg., Colorado

plies.

Springs, Colo.
•

White

Underwriter—None.

Shield

Corp.,

New

York

Oct. 20 filed 110,000 shares of common stock
(par 10c).
Price—To be supplied by amendment.
Proceeds—For, ad¬

vertising and

general

to be offered

are

funds.; Underwriter—The
"all

?fore the close of business

none" basis by Adams &
.

Peck, of New York, who will advise the issuing

company

the third full business day

Rowing the effective

date of registration as to whether
they will purchase the shares.
-

^ Winkelman Bros. Apparel, Inc.

(12/1);
145,000 shares of class A common. stock
(par $3), of which 70,000 shares are to j be offered itor

Oct.

fifed

the account of the company and * 75,000
shares, repre¬
senting outstanding stock, are to,be offered for, the ac¬
counts of the present holders thereof. Price—To be supplied by amendment.^ Proceeds—For general corporate

Office—25 Parsons St., Detroit, Mich.. Under¬
writer—Watling, Lerchen & Co., Detroit. '
y
purposes.

it World Publishing Co.

(11/17) *
100,000 shares of common stock (par $1).
supplied by amendment.
Proceeds—For
plant and working capital. Office—2231 W; 110th Street,
Cleveland, Ohio. Underwriter—Joseph, Mellon & Miller,
Oct.

filed

Price—To

Inc., Cleveland, Ohio and New York.

Wyoming Nuclear Corp.
Sept. 11 (fetter of notification) 10,000,000 shares of com¬
mon stock. Price—At par
(three cents per share). Pro¬
ceeds—For mining expenses. Office—Noble Hotel
Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,

Pittsburgh, Pa.

Prospective Offerings
American Gypsum Co.

July 15 it

was reported that the company will register
debt and equity securities later this year,- Proceeds—For

construction

of a gypsum products plant fn Albuquer¬
New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

que,

* American

one new

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬
turers; and for working capital. Office—65 Honeck St.,

Hospital

Supply Corp.
company, have authorized an
additional equity financing, number of shares has not as
yet been determined. Proceeds—For company's expan¬
sion program, to retire bank loans, and rfor general'•corporate purposes. Underwriters—Eastman Dillon, Union
Securities & Co. and Smith, Barney,& Co.; both of New
Oct.

directors

this

York.

American Jet School, Inc., Lansing, Mich.

Aug. 31 it

was

issue and sell

•

Underwriter—

Engineering and Research Associates

Oct. 1

(12/1)

Calif.

of class A

(11/2)

Francisco,

debentures and warrants to purchase
25,116 shares
common stock
($1 par). Price—$100 per unit

come

Price

San

Aug. 31 fifed $837,200 of 7%% 30-year subordinated in¬

new

Qne

St.,

None.

writer—None.

•/■/-•

in¬
terests) to be offered in units. Price—$5,378.39 per unit.
be supplied
by amendment.
Proceeds — To
bank loans; on its -own behalf and that of a /Proceeds—For investment. Underwriter—O'Malley Se¬

for the

Oct.

•

Corp.

underwriters.

par.
Proceeds—For construction and equipment ol
company's plant and for working capital.' Office—300

fered for

share. An additional

wilt be

March 5 fifed 100,000 shares of common stock
(par $10)
40,000 shares of preferred stock (par $25). Price —

standing 6%

Antonio, Tex.

to be offered in units of

the

(12/7-12)

Finance Corp.

July 8.
Fiber Co.

and

of the

(11/16-20)

Sept. 25 filed 170,000 shares of class A capital stock (par
$5) and 170,000 shares of epmmon stock (par 5 cents),

$194,498,000 to construct and put into operation a pipe¬
line system, to supply natural gas to the customers of
Pacific Lighting Company's subsidiaries.
Underwriters
—Lehman Brothers and Merrill Lynch, Pierce, Fenner &
Smith Inc., both of New York.
common

Grand Estes Hotel and Con¬

Urethane

mon

655,000 shares of

Sept. 25 filed 167,500 shares of common stock (par 10
cents), of which 150,000 shares are to be publicly offered.
Price—$4 per share, Proceeds — Fof general corporate
purposes, including provision of funds for the purchase
>f the assets of a similarly engaged enterprise, working
capital, new equipment, and expansion, Office—Louis/villW Ky. s Underwriter—Michael G. Kletz & Co., New

supplied by amendment. Proceeds—Will be used
as-part of a total estimated financial requirement of

* Trans-World Financial Co.

construction

effective

Western Wood

Montgomery

July 13 (fetter of notification) 10,000 shares of common
(par 15 cents). Price—$5 per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
Bldg:, Dallas, Tex. Underwriter—Texas National Corp.,

(11/18)
Oct. 20 filed $40,000,000 of 5% subordinated •debentures

ance

Enterprises, Inc.

stock

Pipeline Co.

of debentures and five shares of

for

Universal

New York.

the

Sons, Baker, Watts & Co., John C. Legg & Co.
Stein Bros. & Boyce, all of
Baltimore, Md.:

.York. \

debentures, 10 common shares, and 5 warrants. Price
—$150 per unit. Proceeds—For general corporate pur¬
poses, including working capital. Office—120 Broadway,
New York City. Underwriter—Ros-s, Lyon &
Co., Inc.,

•To

per

Universal Container Corporation

repay

share. Proceeds
surplus. Underwriters—Alex.

capital and

Englewood, N. J. Underwriters—Amos Treat & Co., Inc.,
Truman, Wasserman & Co., both of New York.

and

Statement

warrants

ment effective Oct. 9.

The

—

The

Hall, to be constructed in the immediate vicinity
Chalet, located in Larimer County, Colo.
Office —330 South 39th Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo. State¬

development of oil properties. Underwriter—First
Planning Co., Washington, D. C.

Oct. 26 filed

Price—$26.50

28.

vention

Investment

Oct.

of Estes Park

Mangum, Okla.

due 1969 ana

record

4,500,000 shares of class A common stock
(par 50 cents).
Price —$2 per share. Proceeds — For
development and construction of a "Western Village"

March 20 (letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per snare).
Proceeds—

Traitswestern

increase

17.

United Tourist

—

Petroleum &

held

Jan. 28 filed

Sept. 30 filed 200,000 shares of class A common stock,
(par 50 cents). Price—To be supplied by amendment.
Proceeds—For expansion, and for the reduction of in¬
debtedness. Office—902 Orange Street,
Wilmington, Del.
Underwriter
Johnston, Lemon & Co., Washington,
Transcon

Fidelity & Guaranty Co.

Brown &

Enterprises, Inc.

D. c.

expire Nov.

—To

Underwriters—To be supplied by amendment.

Town

For

United States

Oct. 8 filed 910,743 shares of capital stock (par $5) to be
offered to stockholders on the basis of one new share for

announced thaL the corporation plans to

100,000 shares of

common stock
(par $1)*
Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to a national one, and

introduction of
1609

new

courses

and ^resident study schools.

In correspondence school business. Office—
Kalamazoo St., Lansing, Mich. Underwriter — In

Business

—

New York, to be named.

Bell

Telephone Co. of Pennsylvania
Sept. 25 it was announced that the company : plans the
sale of $30,000,000 of debentures dated Dec. 1* 1959.
Proceeds
To replace short - term borrowings used to
—

finance construction. Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan

Stanleyv& Co.;

Continued

page

(1824)

The Commercial and Financial
Chronicle

Continued from

page

subscription

offering to its shareholders.
Shareholders
given the right to subscribe pro-rata on the
basis of about one new share for each 6.09
shares
would

White, Weld & Co. and Eastman Dillon, Union Securi¬
ties

Co.

Dec.

(jointly).

Bids—Expected to be received

15.

Benson

June

plates

Manufacturing Co.,

Kansas City,
the

that

announced

was

company,

Mo.

offering of $4,500,000 of common sttfck.
Pro¬
ceeds— For expansion program and additional working
capital. Business—The company is engaged in the manu¬
an

facture of aircraft and rhissile parts, aluminum containers
and beer

barrels, aluminum curtain wall sections for the
building industry and other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.

Bridgeport Gas Co.
Sept. 9 it was announced that stockholders were to be
asked on Oct. 27 to approve the issuance of about $1,100,000 in

stock to stockholders in ratio of one

new common

share for each

new

reimburse

the

■expenditures.
ranged
Conn.

seven

company's

held.

treasury

Proceeds

—

through Smith, Ramsey & Co., Inc., Bridgeport,
,•

.^ '.-Vr'
Brooklyn Union Gas Co.
Aug. 19 it was reported that the company is contem¬
plating some additional equity financing, the form it will
take will be decided on shortly. Proceeds—For construc¬
tion program. Offering—Expected before the end of the
.

year.

Coffee

House,

Inc., Lansing,

Mich.Aug. 31 it was announced company plans to issue and
«ell 100,000 shares of common stock (par 10
cents). Price
—$3 per share. Proceeds
To build chain of coffee
—

bouses, establish commissaries and for general corporate
purposes. Office — 1500 Clifton Ave., Lansing, Mich,

fjnderwritcr—In

New

York, to be named.

Consolidated Edison Co. of New York Inc.

(12/1)
reported that the company plans the is¬
$50,000,000 first and refunding mort¬
gage bonds. Proceeds — For construction expenditures.
Underwriter—To be determined by competitive bidding.

July 30 it

was

and sale of

suance

Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
to be received

Dec. 1.

Consolidated

May

Natural

Gas Co.

19,

James Comerford, President, announced that
company plans later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Underwriter—To be determined by competitive
able bidders: Halsey, Stuart & Co.

bidding. Prob¬
Inc.; Morgan Stanley
& Co. and The First Boston
Corp. (jointly); White, Weld
& Co. and Paine, Webber, Jackson &
Curtis (jointly).
Cyprus Mines Corp.
July 15 it was reported that approximately
1,000,000
chares of a secondary issue common stock
will be regITenner, & Smith Inc., New York.
Dallas Power &

Light Co.

Aug. 3 it was reported that the company
contemplates
the issuance and sale of about
se¬

curity, but

type or types has not as yet been deter¬
Underwriter—To be determined by
competitive
biddiiig. Probable bidders*/ (1)' For bonds:
mined.

Halsey, Stu¬
Co.fine.; The First Boston Corp.; Salomon Bros.
Hutzler; Kidder, Peabody & Co. and Merrill Lynch,

art

Pierce, Fenner & Smith Inc.
Union Securities &

(jointly); Eastman Dillon,
Co.; Blair & Co., Inc. and Baxter &

Co.

(jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody &
Co.; Blyth
& Co., Inc. and Merrill
Lynch, Pierce, Fenner & Smith

Inc.

(jointly); Salomon Bros.

& Hutzler; Equitable Securitics Corp.; Eastman
Dillon, Union Securities & Co.;
Lehman Brothers; Blair & Co.
Inc.; The First Boston

•Corp.

Offering—Expected sometime this Fall.

Duquesne Light Co.
Aug. 3 it was reported that the company is
contemplat¬
ing the issuance of an undetermined amount of subor¬
dinated

convertible debentures.
determined by competitive

Underwriter

—

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb &
Co.; Eastman
Dillon, Union Securities & Co.; A. C.
Allyn & Co., Inc.
.and Ladenburg, Thalmann & Co.
(jointly); White, Weld
Co.; The First Boston Corp. and
Glore, Forgan & Co.
(jointly); Blyth & Co., Inc.; Drexel & Co. and
Equitable
Securities Corp. (jointly).
Offering—Expected later this
year.

it First National Bank
•Oct.

directors

this

proposed

National Key Co.
Stock All Sold
C.

fieaded
Oct.

Unterberg,
an

Towbin

underwriting group
which

offered

stock

200,000

class

the

books

closed.

75,000
the

the

200,000 shares offered,
shares are being sold for

account

125,000 shares

the

company and
for the account of

^celling shareholders.
*

portion of the net proceeds
£rom the sale of the 75,000 shares

Aug. 19 it
ister

—

common

For

land

sold

National

bonds.

Last

bond issues Were

Tampa Electric Co.
Sept. 14 it

National

Oct.

Mail

Order

was

Co., both of New
•

Transcon

Oct.

issue

count of the

for

Co., Lansing, Mich.

the

named later in New

'was

come

announced

100,000

(12/9)

that

this

(par $100).

Merrill Lynch,

Pierce, Fenner

(jointly):
Inc., and East¬
(jointly). Bids—

Smith

man
Dillon, Union Securities & Co.
Expected to be received on Dec. 9.

New-Era

Sept. 1 it

Corporation, Rochester, Mich.

was

reported that this company
contemplates

the early registration of

approximately 200,000 shares of
Business—Manufacturer of mufflers and
Underwriter—Mortimer B. Burnside &
Co., Inc.,
New York.
Registration—Expected shortly.

common

stock.

gears.

date filed

by the

com¬

was

jewelry items, and the
distribution

machines.

They
maintain and operate
key dupli¬
cating departments in chain stores

that

the

company on that
of Public Utility

throughout the United States. Key
blanks

also

are

sold

large
cutting
by them. The company has also
recently entered into an agree¬
number

ment

for

customers

with

the

shoe

mon

class

common

475,000 shares of class
stock

stock
com¬

AIKEN, S. C.—G. J. Mitchell, Jr.
Co. has opened
Park

branch office at

Avenue,

under the
management
E.

Kenney, Jr.

Southwest
of Robert

Gas

twice

LOS

Price—To

equipment

obligations

Radio

Savings
Co., St,

in November.

that

the

1960

with

company
the sale

plans
of

the

first

and preferred stock.

common

raise permanent funds for

Trav-ler

be
en¬

Pipe Line Corp.

1960 expansion program.

Pro-

financing of

Office—Houston, Texas.

Corp.

Sept. 10 it was reported that the company is contem¬
plating the issuance and sale of some additional com¬
stock.
Underwriters—Lee Higginson Corp., New
York; and Straus, Blosser & McDowell, Chicago, 111.
mon

it Union Bank, Los Angeles, Calif.
bank offered 260,000 additional shares of its
capital stock (par $7.50) to its stockholders of record
Oct. 15, 1959, on the basis of one new share for each
Oct. 16 the

seven

shares then

—$38.50

held; rights to expire on Nov. 2. Price
share. Proceeds—To increase capital and
Underwriters
Blyth & Co., Inc., and Sterrr,

per

surplus.

—

Frank, Meyer & Fox, both of Los Angeles, Calif.
Worcester County Electric Co. (12/7)
was announced that this
company plans
issue and sell $7,500,000 of first mortgage

Sept. 17 it

bonds, series
E, due 1989. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co,
Inc.; Kidder, Peabody & Co.; Blyth 8c Co., Inc., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner
& Smith Inc.; The First Boston
Corp.; Coffin &
Burr, Inc.
Bids—Expected to be received on Dec. 7.
World

Fidelity Life

Insurance Co.
reported that the company plans to use
its best efforts to register
5,000,000 shares of common
stock with the SEC. Price—$1
per share. Office—314
was

First National Bank Bldg., Colorado
Springs, Colo.

White, Weld Branch

ANGELES, Calif.—Guerdon BETHLEHEM, Pa.—White, Weld
& Company has opened a & Co. has
opened a branch office

Smith

branch

office

2975

Wilshire

Boulevard.

East

Elizabeth

Avenue

under

the management of
Dockham.

David

New Schmidt Office
P. R. Crittenden Opens

PHILADELPHIA, Pa.—Henry\ C.
Schmidt has opened a branch of¬
in the Philadelphia
Bourse,

fice

5th

Below

Market.

SAN
A.

Robert

SYRACUSE,

Crittenden

securities

Smith

Planning

name

ANTONIO,Texas—Benjamin

N. Y.—R
engaging in

business from

Road

under

offices

the

firm

pany.

Trevino

curities
227

NORTH

outstanding.

New Mitchell Office

reduce

announced

market

Forms United Inv.

306

was

per¬

to be offered

are

of America National Trust &

repair

departments.
Upon completion of the current
financing, there will be 200,000
shares

its

seeking

Proceeds—The proceeds in

Offering—Expected

ceeds^-jp
«,

ICC

selling stockholder.

Guerdon Smith Branch

for

leading chain store

operation

the

of common stock
(par
will be offered for the ac¬

Underwriter—Dempsey-Tegcler

Aug. 17 it

application with the Board

and

automotive
e m b le m s,
monogram's
and
miscellaneous

announced

mortgage bonds, and

was

sell

Transcontinental

company plans to
cumulative preferred
Underwriter—To be determined
by
competitive bidding. Probable bidders: Lehman
Broth¬
ers; Equitable Securities
Corp.; Kidder, Peabody & Co.;
Lee Higginson
Corp., and White, Weld & Co.
stock

Association.

England Power Co.

and

with

company and 12,000 shares

account

owing to the Bank

Shepard St.,

reported that the
company will issue and
$10,000,000 of preferred stock. Proceeds—For
cap¬
ital expenditures.
Underwriter — To be determined by
competitive bidding. Probable bidders: Lehman
Brothers;
Merrill Lynch, Pierce, Fenner &
Smith Inc. and Eastman,
Dillon, Union Securities & Co.
(jointly); Equitable Secu¬
rities Corp.,
Kidder, Peabody & Co., Lee Higginson
Corp. and White, Weld & Co.
(jointly); Blyth & Co.,
Inc. Bids—Expected to be
received sometime in Decem¬
ber.
New

57,000

supplied by amendment.
tirety will be used to

England Telephone & Telegraph Co.

Sept. 17 it

application

$2.50), of which 45,000 shares

Sept. 29

issue

York.

Lines

filed

mission

the

sell

'v;,'7.,77

reported that this company has
acquired
interest in Hammarlund
Manufacturing Corp,
from the estate of
Joseph Lush for cash. A common stock
offering will be registered in about two weeks. Under¬
writers—Amos Treat & Co. and Truman
Wasserman &

half

Lansing, Mich.
New

/;•//

reported/that the company is planning
$7,000,000 of additional common stock,

of a rights
offering and a negoti¬
underwriting. Last rights offering was underwritten
by Stone & Webster Securities
Corp., Now York.
★ Telechrone Manufacturing Co.

Louis, Mo.

Aug. 19 it

was

probably in the form

was

Underwriter—To be

been

ated

announced company
plans to register an
issueo I 100,000 shares of common
stock (par 10 cents).
Price—To be supplied by
amendment.
Proceeds—For
expansion and working capital. Office—130

York State.

cur¬

have

the sale of about

year, or early in 1960.
•

issues

certificates, scries No.

Blyth &
Co., Inc. (jointly); Equitable Securities
Corp.; White
Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and
Eastman, Dillon, Unior
Securities & Co. (jointly); Lehman
Brothers and Bear

Bids—Expected later in

7, to
mature in 15 equal
annual instalments. Probable bidders:
& Co. Inc. and Salomon Bros.
& Hutzler.

Oct.

(jointly).

program.

Halsey, Stuart

placed

Kansas City Power &
Light Co.
Dec. 29 it was reported that the
company plans to issue
and sell $20,000,000 of first
mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey
Stuart & Co. Inc.; The First Boston
Corp. and

Co.

incurred for

construction

it Southern Pacific Co.
Bids will be received
by the company up to noon
(EST)
on
Nov. 4 at Room
2117, 165 Broadway, New York 6,
N. Y., for the
purchase from it Of
$6,000,000 principal
amount of equipment trust

be named.

Key

and

rent

•
Independent Radio, Inc., Lansing, Mich. V
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common
stock (par 10 cents). Price
—$3 per share. Proceeds—For acquisition of
radio sta¬
tions.
Business—Radio broadcasting. Office—130
Shepard St., Lansing, Mich.
Underwriter—In New York, to

Stearns &

22, S. C. McMeekin,
President, announced plana
approximately $8,000,000 of bonds in
December,
Proceeds—To repay bank loans

placed privately.

was reported
company received approval from
the Territorial Public Utilities Commission
to issue about

new

'•/

sell

1959.

Aug. 3 it

chains,

duplicating

Olympia, Wash.
Underwriter—Financing in past has been handled by
Offering—Expected later this year.
Hawaiian Telephone Co.

Co. and its
subsidiaries are engaged in the
sale
of
keys, key blanks, key

manufacture

77.7V'

Blyth & Co., Inc.

$4,500,000 of
privately.

company plans issuance

South Carolina Electric
& Gas Co.

June

of which would add about
600,000 shares
to the number of common shares
currently outstanding
Proceeds — For expansion.
Office —

working capital

key

Proceeds

$10,000,000

conversion

will be available for
general

notion and

year.

Offering

an additional
75,000 shares of present com¬
(par $5), or 150,000 shares of new common
stock (par
$2.50). The ICC has approved the
proposed
two-for-ope stock split.
Underwriter—Blyth & Co., Inc.,
New York.'

reported that the company plans to
reg¬
of convertible preferred
stock,

was

about

corporate purposes.
The

public offering of

this

portion

stock

mon

Georgia-Pacific Corp.

of the net proceeds will be
added
the company's

and

share. The offering marks
the first public sale of the com¬
pany's stock.
This offering was
per

later

the

this Fall of

reported that

was

is expected

and including payment of
construction program.

of its current

Ryder System Inc.
Aug. 3 it was reported that

acquisition. Office—30 East 60th
Street, New York City.
Underwriter—Midtown Securities
Corp., same address.

Oct.

31,000

$10

and

Oct. 22 it
stock

outstanding,

—Expected in December.

may

of the cost

it Florida West Coast Corp.

Ohio,
on
which
a
now being constructed.
This building will house the com¬
pany's executive offices and
Cleveland operations. The balance

A common stock
■o£ National Key Co. at a
price of

oversubscribed

derwriters—None.1;,

Cleveland,
building is

Miami, Fla.

stockholders have approved
proposed offering to stockholders of
150,000 additional
shares of capital stock
(par $10) on the basis of one
new
share for each four shares held.
Price—$40 per
share. Proceeds—To increase
capital and surplus. Un¬

pany will be used by it for the
purchase of six acres of land in

Co.

Bank of

announced

was

it Public Service Electric & Gas Co.

Jersey City, N. J.

bank

Sept. 14 it

$20,000,000 of senior

and

expansion

for

Underwriter—Previous financing was ar¬

stock

share. Proceeds—To increase
capital and

First National

contem¬

Thursday, October 29, 1959

proposed issuance and sale of
800.000 shares of common
(without nominal or par
value). Proceeds—To be
added to the general funds
of the company and will be
used for its
general corporate
purposes, including pay¬
ment before
maturity of any unsecured bank loans which

held.

per

Commissioners of the State of New
Jersey covering the

Price=r-r.$53
surplus.

engaging in

business, from

West

under

Hermine

offices

se¬

CHICAGO,
Brennan

the

firm

name

Investors Planning.

United

Crittenden

Com*

With Goldman, Sachs

Boulevard

—

111.

now

Terence
affiliated

with

Goldman, Sachs & Co., 135 South
La

Salle Street.

190 ^Number 5894

Volume

The Commercial and Financial Chronicle

lion

The Security
I Like Best

before

seriously considering
dividend,

peak level, about 15% ahead of

increase in the cash

(1825)

Return Schedule

last

sales again should
record-high level.
Response of employees to „the Earnings, due to better operational
unusual working environment and
efficiency could increase 25%, or
recreational facilities
ha^s been about $1.75 per share in fiscal
most gratifying, proof that excel¬
1960.
t
r
* - 1
Continued from page 2
lent working conditions can con¬
A realistic appraisal of the fore¬
architectural beauty and indus¬
tribute greatly to both morale and going
would indicate"■ that tnis
trial efficiency, it has attracted
efficiency of operation.
company lis
a sound
investment
widespread
attention.
In
May,
At the executive level, overall for the conservative investor seek¬
1959, The Stuart Company was planning and departmental coor¬
ing a pattern of long-term appre¬
given a McGraw Hill Co. award dination have benefited
:
greatly as ciation.
r
as one of the "Ten Top Plants of
a
result of having all the man¬
The Stuart Company is traded
the Year."

agement personnel under

The

product line has continually
expanded and is now represented
"by over 30 items, including items
in the general classifications of
amino acids, hematinic products,
multi-vitamin and mineral prod¬
ucts, lipotropic items, growth and
appetite v stimulants, obesity con¬
trol, bulk laxative, urinary tract
therapy,1 and hydrochloric acid
therapy.; ; /
' '
; \
-i'".".''-*

Current activities
Fiscal Year

number of

roof.

moving at

are

one

Net

End. Mar. 81

the
a

Over-the-Counter

Net

tPer Share

Earnings

•^Dividend

$0.60

1952

4,319,000

-360,800

4,872,300

*375,900

0.48

Low

High

f;1953_1954

0.50

*405,100

0.54

0.36

"1955——

5,852,800

627,900

0.84

0.41

1956—_

7,243,200

944,800

1.26

1957—

7,697,300

1,025,500

1.37

1958

8,012,400

1,069,200

1.43

1959—

3,350,000

1,071,900

1.43

new

products to the medical profession
which the company reports are
making substantial contributions
to the sales and earnings picture.

Ar. New

If there

insufficient reservations for

are

6%'

Y., is Chairman.

Hollywood

are

;

•

Amvicel-X,

product,

the

and

introduced

product

acceptance exceeded all expecta¬
tions. The total national laxative

approxi¬

market alone, consists of

mately $148 million sales annually.
"Stuart"-

Softab,
that
of

the

was

first

tasting

pleasant

use

tablet

be taken without the use

can

water

(liquid in tablet form).

Four

products are now in this
form including Softran, a new and
very

effective tranquilizer.
the

present plan of the
company to market-test all prod¬
ucts before offering them on
a
national
scale.
Currently, three
new laboratory developments are
being market-tested in; limited
areas.
One product is Mylicon,representing a completely new
approach to the relief of distress
from entrapped
gas.~ Physicians
have also evaluated this product
as a definite advance in the safety
and protection of a patient after
surgery. Some are recommending
Mylicon for the relief of colic in
infants.
This product is still in
clinical study.
!

*After

ucts
.

major marketing

this country, as well
foreign countries.

.Sales

areas

in several

and

earnings, et cetera,
are shown in the highlights tabu¬
lated below, indicating an aggres¬
sive growth pattern.
Net income after taxes equaled
25% of the sales in fiscal 1959.

Stuart
Company's current assets for the
fiscal
year
ending March, 1959
were $2,650,292, including $843,000
Financially

cash.

The

Current liabilities

202,357.
ratio

sound,

This provides
2.20-to-l

were

$1,-

current
working

Profits

Excess

J Person

281/2

$48.68

loans.

Total

1970.
are

All

officers

reported to

approximately
common

directors

and

own

in aggregate

490,000

Tax.

will be held

$44.99

$37.07

44.99

37.07

$27.94
27.9'4

46.92

43.34

35.75

40.43

33.28

25.08

53.19

38.12

35.04

30.14

22.17

33.99

31.08

26.84

19.75

59.07

Washington

are

beginning

Certificates

^-Adjusted for Stock Dividend and Split.

pal Forum

•/'

covering Pullman

are

space

will be issued in lieu of

Certificates will be mailed if applica-'

received promptly.

Otherwise they

may

be picked

of the

Munici¬

Pullman

reservations

for the

return

trip of the special train

-j

Those in charge of going Pullman reservations will
them. Round-trip railroad fares (including

not be able to supply

Federal tax) to Hollywood from
are

points served by the special train

fdlldVvs:

meeting of the incoming Board of Governors on Thursday after¬
noon, are any planned for the afternoons, which will be left free

New York——
Newark

126.84

Washington

for recreation.

Philadelphia-_

116.06

Richmond

is hoped
upon

very much that each member organization will
its representatives the importance of attending the

convention sessions.

Regular Ticket
The Board

the

1959-60,

L■'

Governors,

pursuant to Article Six, Section 7,
submit to the convention the Regular

Constitution, will

Ticket for

follows:

as
1

-■

John C Hagan,

CHICAGO-ST.

•

Jr., Maion-Hagan, Inc., Richmond

cars

Chicago

Lv.

St.

Lv.

Carbondale

George A. Newton, G. H. Walker & Co., St. Louis
Shepard, Prescott, Shepard & Co., Inc., Cleveland

Lv.

Columbus

Adams, Braun, Bosworth & Co., Detroit
Crowell, Crowell, Weedon & Co., Los Angeles

Robert O.

apply to each

with

mail

and woman registered for the

exceptions. Checks covering registration fees
should be made payable to the Association and forwarded to its
office in Washington with the form for convention registration
hotel reservations.

All reservations for
made

at the convention hotels should

rooms

the Association's office.

through

Confirmation

reserva¬

tions will be

made as promptly as possible, but due to the time
required for processing them, there will necessarily be some delay
in this connection.
The

Americana

will

Ar.

conven¬

certain

for

luncheon

and

dinner, but

may

have breakfast at

either hotel.
The

which

rooms

at both

hotels

are

double

and

rooms

the

number

assigned for single

occupancy will be limited.
It is
important, therefore, that arrangements be made to share accom¬
modations to as great an extent as possible. If single applications
should be excessive, it will be necesary to assign roommates.
can

Convention
NEW

YORK

TRAIN

will be

follows:

passengers).

Sunday,

—

1:45 p.m.

10:00 p.m.

Nov. 29

8:00

a.m.

Street, St. Louis 2, Mo. One-way Pullman fares
eral tax) to North Mia™'
as foiimus;

(including Fed¬

Dbl. Room

St. Louis.

Birmingham
It is not

____

Bedroom

2 Persons

1 Person

$64.57

$46.26

$42.35

$36.58

60.06

—

Bedroom

3 Persons

Chicago-

Compartment

43.01

39.55

34.21

39.55

28.33

26.02

22.44

planned to operate special

for the return trip and
Pullman reservations for that trip should be made through local
ticket agents prior to departure for North Miami. If that is not
cars

possible, or if plans change, they may be made through the rail¬
representatives who will be present at The Americana during

road

the convention.

Railroad Tickets—Railroad tickets should be

purchased from
Those in charge of going Pullman reservations will
supply them. Round-trip railroad fares (including
Federal tax) to North Miami from points served by the special'
cars

are

follows:

Chicago, $120.84 • St. Louis, $106.15 • Birmingham, $67.82
NEW
A

special

ORLEANS

car or cars

SPECIAL

CAR

will leave New Orleans at 5:50

p.m.

Friday, Nov. 27, on the Louisville & Nashville "Gulf Wind," with

Going Schedule

arrival

Saturday. Nov. 28
"
"
"

Lv. Newark

a.m.

the going trip of the Chicago-St. Louis special cars. Persons
wishing to board the cars at Chicago or Birmingham should mail
the form to Matthew J. Hickey III, Hickey & Co., 135 S. LaSalle
Street, Chicago 3, 111. Those wishing to board at St. Louis should
mail it to Harry Theis, Albert Theis & Sons, Inc., 314 N. Fourth

The schedules

Lv. New York

8:15

for

between Washington and Richmond, and Seaboard Air Line Rail¬
road between Richmond and Hollywood (which is the most conven¬

station for Americana

Saturday, Nov. 28

Reservations—The yellow form which accompanies
this bulletin should be used for requesting Pullman reservations

Railroad between New York and Washington, R. F. & P. Railroad

Seaboard

Miami

North

p!nT.

7:15

10:58 p.im

not be able to

The route of the train in both directions will be Pennsylvania

ient

local agents.

Transportation
SPECIAL

5:10 p.m.

the

Nov. 27

-----

Pullman

headquarters hotel. It will not,
however, accommodate the entire convention group and it will be
necessary to place some of those attending at The Balmoral, which
is immediately next door and connected with The Americana by
a
short bridge.
Those staying at The Balmoral will go to The
Americana

—Friday,

Louis

Lv. Jacksonville

The registration fee for the convention will be $50 per person.
It-will

SPECIAL CARS

Birmingham

Lv.

95.98

86.35

follows:

Edward Glassmeyer, Blyth & Co., Inc., New York

and

LOUIS

will be operated

Lv.

Warren

$101.85
__

"The Seminole," the route of
which is Illinois Central Railroad to Birmingham, Central of
Georgia Railway to Albany, Atlantic Coast Line to Jacksonville,
and Florida East Coast Railway to North Miami. The schedule will

FOR VICE-PRESIDENTS

William M.

tion

-* Baltimore

$123.01

It is not planned to operate a special car from Pittsburgh, but
Pittsburgh members wishing to travel to the convention by rail may
make their reservations through A. Lowrie Applegate,
Hulme,v
Applegate & Humphrey, Inc., Union Trust Building, Pittsburgh 19,
Pennsylvania.

These

FOR PRESIDENT

Repre¬

Railroad Tickets—Railroad tickets should be purchased from

local agents.

during the convention and will present their annual reports at that
time. No business sesssions are planned for Friday, nor, with the
exception of the Municipal Forum on Sunday afternoon and a

to date of departure.

the convention,

National Committees of the Association will hold meetings

impress

sentative, The Pennsylvania Railroad, Room 401, Pennsylvania
Station, New York 1, N. Y., at the earliest possible date in order
that satisfactory arrangement may be completed.
If this is not
possible, or if plans change, they may be made through the rail¬
road representatives who will be present at The Americana
during

Sunday afternoon. There will then be convention
sessions each morning from Monday through Thursday. In addi¬
tion, there will be meetings of the Board of Governors and many

currently paid at

the office of William H. Todd, prior to 5:00 p.m. on
Friday, Nov. 27.'
Refunds cannot be made on cancellations which are not made
prior

Americana, Bal Harbour, Miami Beach, Fla.,
Sunday, Nov. 29, and ending on Friday, Dec. 4.

The first business session of the convention will be

the annual rate of $0.64 per share.
In December, 1956, a stock divi¬
dend of 10% was paid, and in
January, 1957, the stock was split
2-for-l.
Management's primary
objective, however, is to build a
cash position up to about $2 mil¬

-t

26.84

43.62

'63.64 :/

Baltimore

at The

stock.

Dividends

48.68

66.11

Philadelphia—

The 1959 Annual Convention of the Investment Bankets Association

amount to $4,442,800.

Of the 747,850 shares outstanding 348,480 are
in a Voting Trust expiring June,

Roomette

should be made through D. A. Kornhoff, Passenger Sales

assets

net

47.41

Newark

Investment Bankers Assn. of America

capital of $1,447,935. The company
has no long-term debt, and no
bank

)

2 Persons

/New York—— $66.11

Forty-Eighth Annual Convention of

ties

permitting additional study
relating to organic synthesis, and
natural product investigations.
A highly trained sales organiza¬
tion consisting of approximately
175 men make periodic calls di¬
rectly to the medical profession.
Distribution is made on all prod¬

Bedroom

2 Persons

Richmond

laboratory facili¬

new

•

■

Research and development have
'been increased substantially at the

company's

2 Persons

;

tions

control

1
/

Bedroom

regulation Pullman tickets.

was

route

Compt.

unique effervescent bulk laxa¬
tives, Effergel and Effersyl, were
marketed nationally. A third lax¬

ity

return special
same

One-way fares (including Federal tax)

follows:

v.1

In April of this year, two new and

ative, EffersyIlium, has just been
released. Also, an improved obes¬

service will also be available via the same route on a
regu¬
lar train leaving Hollywood at 9:25 a.m. and
arriving in
New York the following day at 10:25 a.m.

171/4

•

2:20 p.m.

regular train leaving Hollywood at 1:28 p.m. and arriv¬
ing in New York the following day at 3:10 p.m. Return

173/4
231/4

0.64

will be operated via the

cars

2:05 p.m.

12:44 p.m.

12:54p.m.

Dbl. Room

0.51

0.64

•

a.m.

York

train, special

'■

0.59

11:16

a.m.

Ar. Newark

91/4

Philadelphia—
Philadelphia

Ar. North

York 5, N.

5,004,800

Ar. 30th St.

10.25

a.m.

1:30 p.m.

8:05

Pullman Reservations—Pullman reservations for the
going trip <
should be made through the New York Transportation
Committee,
of which William H. Todd, Kuhn, Loeb &
Co.y 30 Wall Street, New

0.31
0.36

Friday,
Dec. 4
Saturday, Dec. 5

Richmond

Ar. Washington
Ar. Baltimore

—tPrice Range—

Ar.

Market

$0.26

$452,300

Lv. Hollywood

recent price of 34.

Income

Sales

1951____ $3,833,600

During the past year, "Stuart"
'has introduced

year, and
reach-a new

another stock dividend.

11:05

a.m.

Hollywood at 4:00

p.m.

Saturday, Nov. 28, on the

a.m.

11:20

Seaboard "Silver Meteor."

For the return trip (if demand is

suffi¬

12:31p.m.

cient), departure from Hollywood will be at 9:25 a.m. on Saturday,

Lv. 30th St. Philadelphia-_

12;41

Dec.

Lv. North

•

Philadelphia

—_

Lv. Baltimore

2:10 p.m.

Lv. Washington

3:20 p.m.

Lv. Richmond

5:55 p.m.

Ar.

Hollywood

Sunday,

Nov. 29

11:35

p.m.

a.m.

5, on the "Silver Meteor," with

8:30 a.m. on Sunday, Dec.

arrival in New Orleans at

6, on the "Gulf Wind."

Drawing rooms,

compartments, and bedrooms will be available. Reservations
Continued

should"«.
page

The Commercial and

(1826)

The following statistical tabulations

Indications of Current

latest week
week

Business Activity

month available.

month ended

Latest
AMERICAN

IRON

Equivalent to—
Steel

ingots and

AMERICAN

INSTITUTE;

STEEL

AND

Indicated Steel operations

,yi..''
("net tons)—,

castings

Ago

8363,000

*371,000

362,000

2,024,000

to stills—daily

runs

(bbls.-)-——

average

~"~SC*

Gasoline

*6,808,775

ASSOCIATION
Revenue

CIVIL

7,688,000

7,994,000

28,111,000

27,625,000

29,192,00X3

it>
16
16

2,157,000

1,971,000

1,817,000

—

12,612,000

RAILROADS;

AMERICAN

12,326,000

5,999,000

5,537,000

6,082,000

CONSTRUCTION

ENGINEERING

NEWS-RECORD:

33,440,000

32,814,000

32,486,000

.!•

170,253,000

59,599,000

58,167,000

59,040,000

68,020,000

Private* construction

580,768

558,780

518,499

578,240

696,403

519,257

496,059

564,203

State and

Public
•'

COAL OUTPUT

(U.

$264,300,000

Oct. 22

146,500,000

145,400,000

226,800,000

114,500,000

118,900,000

183,900,000

147,613,000

Oct. 22

96,200,000

110,600,000

121,200,000

120,849.000

Oct. 22

18,300,000

8,300,000

62,200,000

26,764,000

Bituminous-coal and lignite

MINES):

DEPARTMENT STORE* SALES

*7.765,000

7,780,000

8,700,000

365,000

376,000

379.000

FAILURES' (COMMERCIAL

AGE

160

151

158

Public

PRICES

(E.

12,861,000

12,878,000

250

252

282

•*-'

■

Lead

(St.

York)

Oct. 20

6.196c

6.196C

—

Oct. 20

$66.41

$45.17

$44.50

$42.50

Oct. 21

32.175c

32.425c

30.975c

27.175c

Oct. 21

29.450c

28.125c

37.325c

29.625c

13.000c

—

——

Oct. 21

12.000c

11.005c

24.700c

Oct. 21

101.625c

102.375c

102.G25C

96.875C

Oct. 27

83.44

83.29

81.71

88.09

84.04

89.92

Oct. 21

—————

•

DAILY

12.800C

12.800c

12.500c

12.800c

12.500c

12.800c

11.505c

11.500c

AVERAGES:

U. S. Government Bonds,

Average corporate

Oct. 27

—

84.04

87.99

84.17

87.99

79.13

88.13

85.46
7

84.04

—1

89.64

78.90

79.49

82.77

82.90

83.03

83.28

U. S. Government Bonds

85.98

86.11

85.98

92.35

—Oct. 27

4.17

Oct. 27

;

4.19

4.86

—
—

—-I-——

Baa

—.—__

MOODY'S

4.85

4.86
5.28

1949

AVERAGE

I00_

TRANSACTIONS

Short

4.92

4.44

4.91

4.94

4.71

4.70

384.8

379.7

4.71

4.25

378.4 '

285,609

376,005

389.0

331,221

^.Other sales
Total sales

—

off the

570,331

111.05

111.09

•

54G.998

446,577

108.99

108.60

2,241,510

240,090
1,481.820

2,054,850

564,930
2,077,360

2,628,000

1,721,910

569,980

506,040

57,710

Oct!
1—

544,310

577,000

238,200

602,020

633,400

249,400

Oct.

Oct

——Oct!
for uccount

CROP

824,580

;

769, G45

528,890

145,380

872,145

179,900

92,530

953,415

853,743

785,275

1,098,795

167,950
922,007

1,033,643

877,805

1.089,957

of members—■
Oct.

Oct!

3,362,790

3,695,595

2,619.010

546,770

4,173,795

623.390

343,820

771,180

3,672,253
4,295,643

2,505,295

3,660,567

Oct.

3,208,895

Oct.

sales

3,755,005

2.849,115

4,431,747

DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE —SECURITIES EXCHANGE
COMMISSION
Odd-lot sales by dealers
(customers' purchases)-^!
Number of* shares.
Oct.
Dollar value
Qct.
Odd-lot purchases
by dealers (customers' sales)—
Number of orders—Customers' total sales

—i—

)

Crop

sales

1,490.405

1.604,009

$77,055,016

$76,923,218

$111,853,527

1,137,874

1,382,595

1,167,135

22,681

1,639.940

36,759

13,620

1,115,193

6.105

1,345,836

1,155,515

$55,751,097

TIIE

$59,816,569

1.633,835

$75,079,964

242,450

288,080

320,430

546,710

242,450

288,080

320A30

1.029,770

5461710

Oct!
Oct!

600,300

505,310

775,130

STOCK

sales—

sales

—

JL-II Oct!

891,680

13.409,690

15,615,360

14,171,610

407,110
11,482,210

16,507,040

19,330,320

11,949,320

20,236,220

905,900

Commodity Group—
All commodities

Oct

of Jan.

II—III Oct!
7
Oct!

All

liabilities

1>039

$18,559,000

$18,167,000

6,992,000

5,359,000

5,937,000

15,362,000

14,112,000

12,061,000

7,841,000

3,160,000

2,046,000

$54,501,000

$48,103,000

14,592

14,329

12,932

4,381,772

1,117,430
909,333

1,116,405

3,799,844
1,462,218

_jf)09,333

1,179.924

IN THE

thousands);
,

—

(bushels)

208,097
20.546

—:i__

;
:

;

•

470.449

20,996
23,756

39,543

51,603

47,015

573,183

•

408,442

52,553

;

200,217

21,790

*„

;

1,422.164

408,442

1,075,378

20,996

(bushels)

186,618

1,075,378

—

207,072
20,454

187,551

—

(bushels)

(bales)

565.629

614.845

( tons)

11,512
121,924

8,946

*4,767

6,017

19,083
'4,191

18,981

4,191
529,793

532,669

574,413

—

1,673,120

1,710,300

1.835,800

3,311

4,703

—

22,553

24,152

13.806

13,806

14,659

——il——

—

!_•

—

summer

;

...

—

Fall

(hundredweight)

Hops

8,316

6.681

16,305

15,183

53,385

48,407

115,843

118,274

126,610

72,356

71,069

31,110

31,308

3,248

3.082

219

(bushels)
,_4

219

•

—

L—

and foods

tP"m' WeStCrn Zinc

Oct!

230

hand

net

and

customers

Market

value
value

28.890

230

108

1.273

1,264

132,300

174,750

$3,408,000

*$3,424,000

$3,131,000

158,000
1.039,000

154,000
374,000
1,035,000

1,719,000

290,563,856

margin

1)166.

in banks
free

listed

in U.

credit

S.,

—

balances

377.000

122,000
345,000

Member

borrowings
Member borrowings

011

304,568,809

243,388,149

103,472,784

104,879,730

issues.

107,710,859

427,000

•488,000

254,000

collateral.—

2,255.000

*2,314,000

1,972,000

$379.6

$380.0

$364.2

258.2

258.8

242.5

106.1

106.8

99.3

84.1

84.0

77.9

68.1

68.3

64.1

37.7

listed

accounts—

balancesj

customers

37.6

46.2

46.0

10.2

10.1-.

bonds

other

Govt,

September

(in billions):

personal income
Wage and salary receipts,

Commodity

producing

Manufacturing only
Distributing industries

119.6

*86.5

88.9

106.1

*106.2

91.3

107.4

109.9

94.7

118.6

Other labor

Business

99.8

105.1

Rental

128.3

126.1

"herl

professional

0f 147-633.G70 tons

Total

9.3

persons

32.8

10.0

14.3

12.0

12,0

11.9

13.5

employees'

surance.

44.1

34.9

9.G
1

interest

for

social

—

nonagricultural

12.G

22.7

.20.6

26.5

27.3

26.8

contribution

13.4

23.0

income

Transfer payments
Less

35.0

34.7

Dividends

income

Personal

««"«»

128.5

income

and

95.7

crude runs.

industries

Farm

Government
*119.2

86.1

total

industries

in¬

■

8.3

income,

—

8.4

36G.2

366.3

' 192

omitted):
debit

3.026
.

EXCHANGE—

(000's

carrying

extended

Total

119.1

14o",742!576Tons""tNumber^^of1"order*tin1a2*a-C,lfcyi
on

customers'

Credit
Cash

•

129,700

STOCK

firms

Total

•:

16,538

72,800

crop

(pounds)

Sept.

•

53.403

(tons)

17.434
1,736,204

(bushels)
Pears, (bushels)
Grapes (tons)

YORK

265.729

17,974

8,182
j_—

Peaches

As*

34.308

182,936

1.857,863

(tons)

(pounds)

Member

33.705
169.648

246,897

18,036

—

Apples, commercial

NEW

4,971

1,819,689

(pounds)
Sugarcane lor sugar and seed (tons)
Sugar beets (tons)

Broomcorn

32.774

167,225
—

Tobacco

3,874

243,543

—

Total

Sweetpotatoes

2,475

3,874

—

24,441

5,012

Winter '———

summer

67,134

22.524

19,300

—-

—_

—

spring

10,481

62,213
'

22,524

(hundredweight)—

14,678
111.185

64.548

—

Late

32,485

8,946

—;

dry edible (cleaned—-TOO lb.'hags)
Peas, dry field (cleaned—100 lb. bags)_
Soybeans for beans (bushels)
—::
Peanuts
(pounds) '

■

22,077

14,692
'

Hay, clover and timothy (tons)

spring

282,294 *

113.884

(tons)

Early

REPORTING

(in

wild (tons) *
alfalfa (tons)^

Early

•

3,077,000

11).

Potatoes

4,429,154

(NEW)

(bushels)

all

163

OF AGRICULTURE—

October

(bushels)

'Hay,
Hay,
Hay,

181

;

122

——-—

CROP

—

DEPT.

Barley (bushels)
Rye (bushels)
(100

506

1,135

DUN &
BRADSTREET,
September,—

spring

Flaxseed

187

103

$54,736,000

spring

Oats

187

842

12,595,000

'JL

(bushels)
(bushels)-

Durum

Oct. 20

figure. TIncludes 1,067,000 barrels
of foreign
1959, as against Jan. 1," 1958 basis" of*

Sa»

101

(bushels)

Other

°o

———

•Revised
as

109

16,098.000

service

Service

All commodities other
than farm

1,144

_—

Total

761,920

WHOLESALE TRICES, NEW
SERIES—U. S. DEPT. OF
-LABOR—(1947-49 = 100):

;

$15,974,000

all

Winter

Oct. l!
Oct

Total sales

products
Processed foods—

7130

PERSONAL INCOME IN THE UNITED STATES
(DEPARTMENT OF COMMERCE)—Month

•

sales

Farm

627

142

192

liabilities

Market

Oct

SALES

$70,450,752

EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):

Meats

695

■

STATES-

all

Wheat,

Pecans

2,124,622

$82,644,477

__Oct

Round-lot purchases by dealers—Number
of shares

round-lot

563

—

(tonsJ
Cranberries (barrels)

Oct!
.Oct!

sales

Other

*,155

105

±222

liabilities

Apricots
1,667,559

Oct.

Round-lot sales by dealers—
Number of shares—Total sales

Short

BRADSTREET,

INCORPORATIONS

Cherries

Oct.

Customers' short sales.

Total

104

v.-

—

STOCK

191

—

LOT

TOTAL ROUND-LOT

138

Other

32
259

number——-———:—

PRODUCTION

Corn,

699,500

Oct.

;

Customers' other sales
Dollar value

135'.

657

—:

INC.—Month

Late

38,300
661,200

floor—

—

sales

'Short

•,

•'

liabilities

UNITED

765,790

56,400

2.92,770
11,200

STOCK TRANSACTIONS FOR
ODD-LOT ACCOUNT OF ODD-

■■

13G

liabilities

BUSINESS

2.642,290

2
2

1,968,230

Oct.

the

sales

Total

2,535,860

387,090

1,711,170

Oct.

——

Other

1,797,350

343,680

Oct.

——

—

sales

2,419.910

————Oct.'

—

Total round-lot transactions
Total purchases

floor—

sales

Short

,37

■

427

239

Beans,

Oct.

Short sales

Total

41C

1-—

;

—

service

Hay,; lespedeza

Oct.

—

——

—

Other

——i;

——————:

Cotton

Oct.

;

—

Other transactions initiuted
Total purchases—
^

1,588

'69

__l_

hag)
Sorghum grain (bushels)

MEM¬

——L—
!

-i,

sales

■

—

311,174

327,749

523,694

———

sales

'Short

1,649

382

260,256

314,041

332,662

Oct. 23

ACCOUNT

;

Other transactions Initiated
Total purchases

—^——„

liabilities

Total

Rice

Oct. 17

—

IOR

sales

Otlier> sales

-398

■»

—

number

Commercial

4.44

registered—•

Total purchases..

Total

number

Construction

4-91

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks In which
,

—:—i—„

development

—

Manufacturers'

'4.56

—Oct. 17
—

4.95

Oct. 17
——

_*4,U

4.96

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

and

number

Wliolesale

4.20

5.23

Oct. 17

end ol period

4.42
•

•

4.91

5.26
4.95

Oct. 27

——

Percentage of activity
ut

4.74

Oct. 27

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons):
Production* (tons) •;
Unfilled orders (tons)

Oct. 27

—_——.—.——-

INDEX

4.76

4.55 .1

Oct. 27

Group—

COMMODITY

Total

3.60

4.86

4.56-1,/
4.75

Oct. 27

—

————-——————_—

^Industrials-Group

Oct. 27

/- Oct. 17

4.3G

4.86

4.56

Utilities

500

375-

223

enterprises

number

BOARD U.

Average corporate

Public

•157-;*

354

systems

public

Commercial

89.64

MOODY'S BOND YIELD DAILY AVERAGES;

Group

service

FAILURES—DUN

Construction

87.99

83.40

Industrials' Group

Railroad

and

■
..

institutional

Manufacturing-, number"
Retail

83.40

82.90

Oct. 27

■189
v-488

43
23

1,564

water

service

Wholesale

93.08

83.40

Oct. 27

—

Group.

466

—

94.40

85.59
" :

—Oct. 27

Group

—

and

other

Retail

85.33

and

Conservation
All

11.000c

———Oct. 21

Public/Utilities

—

Industrial* 2~~_1_———
Educational
::
!:

*•

BUSINESS

—.——Oct. 21

Railroad

174

' •

construction

Public

$42.83

———Oct. 21

PRICES

INC.—Month of September:

(New York)

.48

■

Zinc (East* St.: Louis) at————
Aluminum (primary pig. 99.5f/c) at—

BOND

Other
nonresidential, buildings
Military facilities
Highways

$66.41

Oct. 20

—

Louis)

Straits^ tin

;—

—

utilities

Sewer

at————————
tZinc (delivered)?dt_
———:—

MOODY'S

251
1

recreational'

Administrative

QUOTATIONS):

—

(New

148"

267
'

Electrolytic copper—
Domestic refinery at—
Export refinery, at————-——
Lead

167

,191

255

275

DUN

—

170

buildings —.—
>
.^Nonresidential buildings __d——

12,174,000

——.———

318

178-

181

buildings——-—

PRICES:

(per lb.)_

Pig iron (per gross ton)r—
Scrap steel (per gross ton;
METAL

garages.

175
369

171

Residential

146

12,762,000

—Oct. 22

INDUSTRIAL)

AND

——

COMPOSITE

Finished steel

and

Hospital
Oct. 17

.—

BRADSTREET, INC.IRON

166

.———

464,000

Oct. 24

100

—

(in 000 kwh.)

366

352

Railroad .'——————————————— *

INDEX—FEDERAL RESERVE

SYSTEM—IPI7-HP AVER AGE

restaurants,. and

nonresidential

Telephone and telegraph^..
Other
public utilities
All other private

EftfSOt* ELECTRIC INSTITUTE:
Electric output

'736

•

>■-.

7,870,000

(tons)———-————— Oct. 17
—Oct. 17

Pennsylvania anthracite (tons)-——

•.

$410,700,000

Oct. 22

——

BUREAU

$261,000,000

—-

——.

811

■

—~

municipal—

Federal

'53

773

________

Miscellaneous
Farm construction

$251,425,000
103,812,000

—

—L_j—

buildings and warehouses——

Social

Oct. 22

——-~— »—

Public construction——.———.

1.327

450

Educational. —
Hospital and institutional—^

1,746

440

Religious'*L^-v—--12—■''

3,157

1,614

1———,^.22.--—

Stores,
Other

4J45

3,642

1,590

—^2———:

5,291

2,135

Oct. 1G
•

——

5,097

Commercial

161,341,000

180,782,000

Ago

2,100

(lionfarm)——J_

units

Industrial

Year

millions):

—

170,361,000
■•31,520,000

177,670,000

ENGINEERING

—

(in

Previous
"Month

3,533

buildings

dwelling

Office

177,613,000

of that date:

——

Nonhousekeejiing
Nonresidentfal buildings

6,838,000

179,990,000

Total U.' S. construction.—

DEPT.

Additions and alterations

12,704,000
•

178,732,000

'•

Sept.

construction

pet; 16

—.. —

construction

new

New

2,452,000

11,796,000

freight loaded' (number* of cars)——,
——— Oct.
17
freight received from connections (no. of, cars)—Oct; 17

Revenue

Total

6,892,585
7,613,000
25,991,000

"2. ,5
Oct. \<i

Finished and. unfinished gasoline; (bbls.) at--——-——
Kerosene? (bbls;); at—^——————..—

Distillate fuel oil: (bbls.)* at
'Residual fuel oil (bbls.) at

•:

6,822,075

•7,759,000

output' (bbls'.)—.
————Oct.
Kerosene out put ^ (bbls.) :.2-2-22——————**—-—Oct,
Distillate fuel oil output' (bbls.)—~—— Oct.
Residual fuel oil output (bbls;)
—————.Oct.
Stocks at refineries, bulk-terminals; in transit;.in pipe lines—
'

CONSTRUCTION— U.

Residential

6,839,025
Crude

BUILDING

are as

Month

I 75.0

Private

output—daily average (bbls. of

either for The

are

Latest

12.8

—

-.»uci. ji

Thursday, October 29, 1959 it

of quotations,

cases

Ago

*13.1

PETROLEUM INSTITUTE:

Crude eih and*condensate*

or,

LABOR—Month

production and other figures for the

cover

Year

Week

£13.0

Oct. Ji

-—

Month

Week

■

(per cent capacity)-——

Dates shown in first column

that date,

Financial Chronicle

7.1
.

34G.1

i
,

;

Number 5894

190

Volume

The Commercial and Financial Chronicle

(1827)

Shell Elect. Corp..
Stock Offered
Schweickart

Co.,

publicly offered
stock

common

Oct.

Investment Bankers Assn. of America

170,000 shares of
(par 10 cents) of

Shell
Electronics
Manufacturing
Corp, at $2 per share.
The company's current business"
may
be divided into two cate¬
gories: (1) The design, assembly;and sale of electronic indicating
devices,
under
the
registered

"Test-O-Matic"

trademark

Continued from
be

made

page

through H.

AIR

TRANSPORTATION

and Miami

follows:

"*•

""'' •

■

(

Miami

Lv.

(National Airlines, Flight 5)
New.York*—A
—>
Saturday, Nov. 28
Miami
"
«
«

1959

the

and,

from

modulation

At the present time

monitor.

Ar.

the

intended

are

for

self-

monitor,
which

Returning

New York*—."

Lv.

Miami

field strength meter
introduced in October

was

Ar.

use.

and

New York*
'

SAN

1:15 p.m.

liam H. Ackridge has become as¬
sociated with Dempsey-Tegeler &

3:40 p.m.

ing Department of the local office
of William R. Staats & Co.

p.m.

testing relative power-output fre¬
quency,
audio level, modulation
distortion, hum level, and har¬
monic

content

transmitters.

tecnnicians'

the

suggested

$91.85

models

wave

The four self-service

testers have
from

short

price of

$199.95,. the

and

$6.95

two

servicemen's

and

$79.95,

modulation monitor

and

$29.95.

•A Since

May 1959 the company
has been assembling a stereo am¬

plifier designed to operate in
junction with

con¬

turntable and

arm

crystal or ceramic
cartridge or an AM and FM tuner.
The amplifier has a suggested re¬
tail price of $68.00 and to date
555
units * have
approximately
equipped with

Hdlewild Airport.

Reservations for

16-day first-class
Dec.

This

10.

The company

1959

intends in Decem¬

place

of technicians and

use

described

for

$142.23 which is

valid

curities

North
the

association
of
Joseph
C.
Leonard of Lincoln
ton, North

Carolina, as the local representa¬
tive in 'Lincolnton and
surround¬
ing

area.

Mr. Leonard has been identified
with business and
farming inter¬
ests in Lincolnton for a
number
of years.

UTILITIES COMPANY

cost.

addition, Drive-Yourself

cars can

Braun

through the Transportation Committee and picked
at the Miami

Carlson

POMPANO

BEACH, Fla. — A. C.
Co.' has opened a new

office

DIVIDEND NOTICES

United Sta

tuner

deferred

was

5% Preferred

25'^
27d
27V2

242

branch of¬

Montgomery

Street

of Charles

Stevens.

III.

Common

Kentucky Co. Opens Branch

—^New Binder Branch—-

PADUCAH,

BEVERLY

HILLS, Calif.—Binder
Company, Inc. has opened a
office

140

.....

5^2% Convertible Preferred

Roger G. Johnson and Robert

Ky—The

Company

has

opened

office

South

The

Board ot Directors this day declared
quarterly dividend of thirty
cents/(30tf)
share on the outstanding Common Stock
of this Company payable December
15,1959,
to stockholders of record on December
1,1959.
a

the

Guthrie

of Willard H. Lea.

DIVIDEND

J. Ley,

remain

open.

Foundry Compant

MANUFACTURING
COMPANY

Directors declared

Board of

dividend of

forty-five cents (45c)
the

common

per share
shares of the

Company, payable Nov. 25,1959,
to

shareholders of record at the

close of business Nov. 10,1959.

45d

DIVIDEND No. V57
On Oct. 21,1959, the

R.G.HENGST, Secretary

Manufacturing plants in 18

VICE-PRES. & TREAS.

cities, located in six states,
Canado and Brazil.

October 19, 1959

branch

Building
William

Sinclair,

Distillers

NOTICE

and
COMMON STOCK

Chemical

No. 116

DIVIDEND
#

On October 21,

Corporation
NOTICE

clared

30<

ing Common

has

de¬

dividend of

quarterly

per

Directors

the

the outstand¬

Stock, payable on
stockholders

mon

ber 15, 1959 to stockholders
of record at the close of busi¬
ness on

November 10, 1959.

October

22,

JAMESON

Treasurer

1959.

November 13, 1959.

SINCLAIR

The transfer books will not close.

PAUL

Corporation's Com¬

Stock, payable Decem¬

December 1,1959, to
of record

a regu¬

quarterly dividend of 75
cents per share was declared
on

Board

1959

lar

DIVIDEND
The

duction of the citizens band trans¬
.

will

and

EATON

National

Hardy.

completing production of the new
high fidelity stereo amplifiers and
bringing to completion the pro¬
ceiver.

transfer books

Kentucky

under the management of

Beverly Drive, under the manage¬
ment

5.40% Convertible Preferred

fice

under the management

branch

following rates per sharer

25d

declared at the

5% Convertible Preferred

this

favor'

Pipe and Foundry Company

Birmingham, Ala., October 22, 1959

Quarterly dividends payable Decem¬
ber 15 to shareholders of record De¬

Company has opened

Atlantic

2769

the

Opens Branch

is completing its
design and engineering work on a
High Fidelity FM Tuner which it
on

William

Meyer are now
with L. A. Huey
Co., First Na¬
tional Bank Building.

CLEVELAND 10, OHIO

MONTGOMERY, Ala.—Carlson &

direction

Davis

arrival

the

in production

—

Allan

JOHN W. BRENNAN, Secretary & Treasurer

cember 1, have been

A. C. Allyn Branch

branch

Airport.

servicemen,

The work

Colo.

and

United States Pipe

company.
The company

1960.

Two With L. A.
Huey

be reserved in advance

expected to have
higher degree of accuracy than
other
models
now
sold
by the

to place

DENVER,

expects

C.—United Se¬

Company of Greensboro,
Carolina, has announced

CALIFORNIA-PACIFIC

It is

January,

Russ

With United Securities

The

Limousines will meet all flights listed above to provide trans¬
portation from the Miami Airport direct to the hotel at nominal

tester, designed to measure the
gain of tubes rather than electrical
emission.

DIVIDEND NOTICES

until

mutual conductance

as a

Co.,

per

fare>

production

additional tube tester

an,

fare

FRANCISCO, Calif,
Charles T. Decou has joined the
staff of I. L. Brooks & Co.,
Inc.,
333 Pine Street, members of the
Pacific Coast Stock Exchange.

however, is not applicable to jet
service.
Provision can be made so that those desiring to return
earlier or later than the flights scheduled above
may go one way
with a convention group and the other on a
regular scheduled
flight on either Eastern Air Lines or National Airlines.

Boiilpvard under

ber,

above

excursion

Allyn

types have been sold.

•/._

the

tional

These amplifiers have a suggested
retail price of $79.00 and $129.95
"and to date some 250 units of both

LINCOLNTON, N.

(Special to The Financial Chronicle)

flights should be made through
Sherburne, Bacon, Whipple & Co., 1 Wall Street, New
York 5, N. Y. The round-trip fare
(including Federal tax) between
New York and Miami is $177.76. There is an extra
charge of $11:00
each way on the National Airlines jet flights.
There is also a

Harold

design and engineering work and
is now in production on two addi¬

high fidelity stereo ampli¬
fiers.
The new amplifiers contain
pre - amplifiers
to
accommodate
low gain equipment such as mag¬
netic cartridges and tape
heads-

has been added to the

Denault

SAN

been sold.

The company has completed its

Joins I. L. Brooks Co.

7:40 p.m.

(National Airlines, Flight 8)

1958, accounts for about 1% of
sales
and
is
used
primarily in

FRANCISCO, Calif.—James

staff

Co.; Russ Building. Mr. Ackridge
was formerly with General Amer¬

4:00 p.m.
7:15 p.m.

Calif. —Wil¬

FRANCISCO,

ican and Canadian Securities, Inc.
and prior thereto was in the Trad¬

Special Section Flight 604)
Sunday, Dec. 6
5:15

_____—

Pacific

3:40 p.m.

Sunday, Dec. 6

(Eastern Air Lines,

Street, members of the
Coast Stock Exchange.
£

(Special to The Financial Cheonicle)

The modulation

servicemen's

FRANCISCO, Calif.—Jon F.
Hazehvood has become connected

With Dempsey-Tegeler

1:15 p.m.

(National Airlines, Flight 5)

Ar.

technicians'

for

6:15 p.m.

Miami

are

3:00 p.m.

Friday, Nov. 27

Lv.

operation and are sold to
wholesale
outlets,
and
two
of
which

service

iL
:

•

which:

_•

Company manufactures a variety
of six models of tube testers, four
of

Friday, Nov. 27

(Eastern Air Lines, Special Section Flight 601)

company's

derived

and

■

SAN

A. Cavanah

Building.

with Birr & Co., Inc., 155 Sansome

.'V

Going ;} f ''

New York"-'

Were

Tenth

Ar.

■

919

SAN

Special section flights have been arranged between New York

Lv.

May

Co.,

(Special to The financial Chronicle)

New .York*..—

sales

Staff

(Special to The Financial
Chronicle)

Birr Adds to Staff

released to local, agents.

Miami

testers

Reynolds

Wilson

Ar.

Until

— John
W.
Harris has been added to the staff

Street.

Lv.

tube

SACRAMENTO, Calif.

Arnold, Arnold & Crane, National
Commerce Building, New Orleans
12, La. Space will be

Bank of

Denault Adds

•

(Special to The Financial
Chronicle)

(2) The design, assembly, and sale
of high fidelity components under
the trade, designation of "Shell."
entire

With Reynolds & Co.

Forty-Eighth Annual Convention of

CORPORATION

OIL

New York 20,

600 Fifth Avenue

N.Y.

With Richard Harrison
(Special to The Financial Chronicle)

SACRAMENTO, Calif.—Lawrence
C.

Albers

Richard

now

connected

Harrison,

SOUTH ERN

2200

J Railway

GAS

N AT U R A L

16th Street.

COMPANY

Two With

Mi*chum, Jones

SACRAMENTO, Calif.
Baldwin

ningham

and

have

—

Robert

become

Cun¬

affiliated

217TH COMMON DIVIDEND

SAN

regular dividend of One Dollar

Masson has become associated with
Hooker & Fay, 221

Montgomery

Street, members of the New York
and

Pacific

changes.

Coast

Mr. Masson

Stock
was

Ex¬

former¬

ly with Stone and Youngberg.

($1.00)

per

share has

the Common Stock of The America^

upon

Tobacco Company, payable in

FRANCISCO, Calif.—Arnold

regular /Quarterly divi¬
dend of 50 cents per share
has

been declared

With Hooker & Fay

New York, October 27, 1959
A dividend of

with

Mitchum, Jones & Templeton, 926 J Building.

DIVIDEND NOTICE

Common Stock Dividend No. 83

Stanley
C.

Company

Birmingham, Alabama

(Special to The Financial Chronicle)

Southern

with

Inc.,

cash

December 1, 1959, to

stockholders of record at the close of business November 10,

Harry L. Hilyard
_

T. Co.

Natural

Stock

the

Southern

Gas Company,

pay¬

able December 14, 1959 to
stockholders of record at the
on

Novem¬

ber 30, 1959.

October 27,1959

©A.

Common

declared

close of business

1959. Checks will be mailed.

been

Vice President and Treasurer

1%% (25<) per share
3,000,000 shares of Preferred Stock

of Southern Railway

Secretary
Dated: October 23, 1959

par

$20 per share has today been
declared, payable December 15, 1959,
to stockholders of

record at the close of

business November 13, 1959.
A dividend of seventy cents
share

(70<)

per

the Common Stock without

par

value of Southe>n

Railway Company has

today been declared out of the surplus of
net profits of the Company for the fiscal
year

W. S. TARVER,

Company of the

value of

ended

December

able December
ers

record

November

13,

15,
at

31,

1958,

pay¬

1959, to stockhold¬

the

business

1959.
J.

MAHER, Secretary.

dommercial

The

(1828)

and

Financial Chronicle

Thursday, October 29, 1959

Aubrey Lanston Go.
Is Reorganizing

WASHINGTON AND YOU
BEHIND-THE-SCENES INTERPRET A TIONS

G. Lanston & Co., Inc.
Street, New York City,

Aubrey

CAPITAL

FROM THE NATION'S

Broad

dealers

Government se¬

curities, with branches in Boston
Powerful

WASHINGTON, D. C. — The
temporarily stopped, but far
from settled, steel strike shows
firm signs now of becoming a
springboard for some far-reach¬
ing changes in this country's
general economic policies.
could

become

issue

The

the

over

political powJohnson,
D., Tex., majority leader of the
Senate, and House Speaker Sam
Rayburn, D., Tex., have warned

ers

Federal

trial"

tration

powers

politicians,_ mostly

Democratic
reaucrats

the wheels in motion for

«cale

fight

Before! it's

proposals

iSorne

may

host

;

management

the

steel industry are pubopposing any new laws

Jicly

would interfere

which

free

collective
this

bargaining. Whether
Is absolutely honest, or just

the

for
any

record,

isn't

having

effect on those in the Na¬
Capital who either hon¬

which

reinforcing
Taft-Hartley Act injunction
means of preventing crip■foling strikes range far and wide'.
Solutions from compulsory ar¬
the

Controversy

fact-finding boards appointed,
by the President during nego¬
tiations if a strike is possible
are
being recommended. "En¬
forced collective bargaining" is
a term often heard in Washing¬
ton today.

tions

would

President to set

politicians
'•

the

fact-f'ind-

before

baiter, hints at

business

<juire

much

get

larly

even

seize

force

cerned

order
in

the

tions

in-

strikes'

struck

workers

the

back

government

these com-

industry
on

some

new

the job

unions

tliey

are

con¬

exempt

now

antitrust laws.

col¬

said

bargaining, if possible.
they hope, would force

last

session

For

the

goods

wage

breakdown

are

control

laws

will

be given to Congress

John

Kennedy,

Senator

D„

Mass.,

ings

the

before

plans

his

steel

Senate

hear¬

open

trate

;the

strike ® issue
Labor

will

plans,
them

and

modifica¬

would appear

ignoble
fate of past years—except when
the catalyst of politics is added.
Then, they merit close watching,
;There is already serious study
same

on by Democratic

even

been

spokesmen

publicly

silent

•it

concen¬

have

thus

large

industries

for

apnarent

fade.

the

out of

Joins

may

kicked off by the Senate Anti¬
trust
subcommittee. The sub¬

laws will

intended

year.
to

re¬

pretation

members

Midwest

the

"Chronicle's"

not

the

Stock

views.1

With A. G. Edwards
LOUIS,

Mo.—John

Bray

become connected with

A. G.

Edwards & Sons, 409

North Eighth

Street, members of the New York
and

Midwest

Stock

Exchanges.

Attention Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head

Official

Southeastern

Mills

Films

Pub. Serv.

Without

one

they

for

alieady
S2.000

can

FOREIGN

the

they

sides

strike,

play

taking,

Our

I Carl Marks & C.o. Inc.

believe

the sympathy of
the

workers who

lost

on/the

TEL: HANOVER 2-0050

every

have

average

in wages as the result oC

New

York

telephone number is

CAnal 6-3840

SECURITIES SPECIALISTS

20 BROAD STREET

•

NEW YORK 5, N. Y.
TELETYPE NY 1-971

LERNER & GO.
Investment

10 Post Office

New? York and

Exchanges. ?

coincide with

own

(Special to Tiie Financial Curot.iclei

leaders

winning issue. The facts in.the
steel strike now are so compli¬
cated and impossible to simplify
that they are of little use.
But the increasingly damag¬
ing effects of the strike can be
used,
these
leader's
believe.

Yates, Heitner

from the nation's Capital

and

may

Stock Ex¬

flect the "behind the .scene'' inter¬
may

York

LOUIS, Mo.—George F. Good¬
win is now with Yates, Heitner &
Woods,
Paul
Brown
Building,

i as to whether the steel strike
! can be turned into ari electionf

New

ST.

strike

Congress this
is

the

(Special to Tub Financial Ckron:clv)

ST.

[This column

change.

has

come

Mo.—Sidney

become
connected
Christopher & Co.,
Trade Building, mem¬

1£60

But

the

new

CITY,

bers of

will resume—which is entirely
possible—then there is a good
some

Board

during

period,

that

has

with

subcom¬

legislation
will

natural

reached

off

1961

far,

drive to slide into what might
be called partial nationalization
oi

regular office

Christopher Adds

KANSAS

chance that

possible changes in the
its

for the

"cooling

chances

sub¬

Taft-Hartley Act.
While

it,

proposal

settlement
•

committee about the first of the

study

Bradley

successive

the effects of

(Special to Tub Financial CuhonxcikI

The outcome of these steel
strike-induced moves will de¬

.or

This

at¬

pend largely on what happens
»Jin the next two months. If a

early next

year.

schedule.

increases and price boosts.
to control this supposed
or

Mr.
type

rare

treatment, and he is anticipat¬

mittee.

management

economic

permit

"conspiracy"

impetus for any possible

labor

new

that

stated
was

malignancy which is responding

ing returning to

alleged "conspiracy"

illness

result.

they

board of

law

prime targets.

Tlie

meantime,

unions

petroleum, electrical equipment,
consumer

boosted

were

company

Lanston's

The probe would de¬

the

of the

member

The

steel

between big companies and big

by the largest U. S.
corporations. Steel, autos, chem¬
icals, baking, farm machinery,
other

the

his

and

directors.

how the strike was
settled and whether

tacked

dominated

the

and is

they'd

Rosenwald
to

dispose . , of
their,
holdings. Archibald R. Graustein,.
a
large stockholder in the com¬
pany, will retain' his investment,

prices

part,

possible by the willingness

associates

that

inception) having in¬
holdings. This was

their

William

subcommittee

when

started

over.

was

proposals
for "enforced collective bargain¬
ing" are aimed at industries

and

made

ready to open some kind of in¬
vestigation as soon as tlie strike

Congress.

most

•

the

privately

strike

finally

year.

ar¬

and

permit the government
a

that

be doomed to the

govern¬

compulsory

such

manage

over

Sources

These

proposals

from the

j going

process

under government management
while a settlement is dictated

fey

where

injunction

bitration

antitrust
to

aecomplish this proposal, particu¬

;

a
serious
national emergency!
exists, and to replace the pres¬
ent 80-day maximum time limit
with an indefinite time.

ment

separation

indicates

proposals.;include;
in the present Taft-

permitting

past

| laws would be needed to

permit the President to ask the
injunction be invoked before j

the

ays

govern¬

issue in the current steel strike.

extreme

Department
in

control

creased

has

Probe Planned

argue. They would
to do this by clamping
of

Co. since its

giants
It

headlines in sharp
steel, auto, and other
firms, but it has not yet been
able to generate the heat nec¬
essary for legislation.

kind

dramatic

the

world.

the Eccles bank¬

ing interests (which have had an
interest in Aubrey G. Lanston &

some

attacks

pend

the

Failure

too.

made

port the control push as they
supported union reform in the

split

panics in spite of repeated for-

tices. which embrace such ques¬
tions.
is
of
course
a
major

proposal lo.ieto

approval before Install¬
ing-automatic machinery which
displace workers. This
ignores the fact
that
most
-unions already have a pretty
firm grip on technological dis¬
charges. So-called work prac¬

changes
Hart.ey

action

would

elude

unions

officials

ment's

Other

business

some

the large firms such as U. S.

j Justice

O'Mahoriey,
ardent business

from

Steel, General Motors, and

Senator Joseph C.

D., -Wyo.,

also

are

Eccles,

tive Committee,

some

industrial

the

the hope that voters would sup¬

well as bureaucrats

government

large

strike is called.

for

and

damages

and

they can climb on
the - little - fellow"

tional free enterprise stand.with

^
the

most

demands

new

) leaders,

handling

present their arguments in pubeven

where

strike

steel

the

bringing

■ing board to force both sides to
Hie

control

the' depth

And

permit

industries

This,
Republicans to take their tradi¬

age.

is backing what he terms

("administered p r i c e
industries," s o m e economists
call them) to seek government
approval before prices are in¬
creased
are
being revised not
to include wages in their cover¬

•flexible" machinery for use by

•

cracker box

legislation aimed at
of

they

lective

output

James
Mitchell, not particularly well
liked by unions or management
but running hard for the Vice-

government

firms

few

a r y,

nomination

while

Proposals to require corpora¬

President of
the First Security Corp. and First
Security Investment Co. of Salt
Lake City, has been elected a di-^
George

line."

to start

reason

"liberals"

will

some

bitration by government boards

strikes.

that

propose

"Administered Price"

dotted

con¬

Senator
Estes Kefauver, has long sought

push legislation
keep the giants of
both industry and unions from
letting the country go to pot

♦

strikes.

Secret

that

"help
bandwagon

issuing bureau. This, its"
proponents say,, would be used)
to
prevent
such
crippling

for

Democratic

the

govern-J

wasn't

committee, headed

sides.

The

virtu-

revoked

follow instructions

Regain Popular Support

merit

Possibilities

year,

could

ally at the whim of

4he

two

franchise

federal

if you

miles-apart "position of the

reason

secure

asked

rector and member of the Execu¬
the

requiring large corporations

by cutting along; the

schemes

such

been elected Treasurer.

"When

cerned with the fact that you never open a

A.'

has

Comptroller,

Reid,~ formerly

include

suc¬

Edward

Vice-President.

utive

the

firm,

Youngdahl has been named Exec¬

proc-

This next step is also begin¬
ning to show up. Along with the
proposals for dealing specifi¬
cally with collective bargaining,
the
steel
strike
is
causing

Proposals Vary

Presidential

begin

been

has

Horton

ceeding Mr. Lanston who becomes

be¬

included

not
once

Chairman of the Board. C. Richard

government fixing
wages, it must end in more and
more
wage
fixing and finally
government price fixing."
of

ess

These

Labor

Leonard

named President of the

host of longproposed
b u t always-ignored
plans to dust them off again.

ernment controls over the couh4

champions

tion's

try's large industries.

was

"if

cause

will be considered,
be accepted.

union and

Both

resolved,

arbitration

workers

full-

question.

this

over

pulsory

getting

already

founder, Aubrey G; Lanston.

that com¬
of
utility

lie said

■

Chicago, is being reorganized
because
of
the
illness
of
the

under bitter discussion

was

In Congress,

erstwhile bu¬

and

are

and

original Taft-Hartley

When the

George S. Eccles

Aubrey G. Lanston

price

Act

g e iv

arbi¬

wage

setting, in effectwere
long ago spelled out by
the late Senator Robert A. Tuft.
and

machinery to prevent such

impasse.

government

—

steel

the

tragedy from occurring again.

Dangers of compulsory

Govern¬

given

Such

Senator Lyndon

that "collective bargaining is on

much

correctly, but
basic question ot'

the

should

ment

Govern¬

deeply

formulated.

whether

Federal

the

into collec¬
tive bargaining, at least in the
large industries, are not yet
ment

government acted

enough,

soon

and

won't

tlie

exact pro¬
the heavy

cases,

putting

for
of

hand

major issues in next year's elec¬
tion campaign, which up. to now
appeared likely to be fought on
strictly personality questions..
whether

Support

many

posals

the

one

Telephone
HI bbard

Securities

Square, Boston 9, Mass.

2-1990

Teletype
BS

Full text of Commercial and Financial Chronicle : October 29, 1959, Vol. 190, No. 5894

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